San Jacinto City Council
March 21, 2023

AGENDA

CITY COUNCIL - REGULAR MEETING
TUESDAY, MARCH 21, 2023
6:30 PM OPEN SESSION
LIVE STREAM LINK: WWW.SANJACINTOCA.GOV

COMMUNITY CENTER
625 S. PICO AVENUE
SAN JACINTO, CA 92583
951-487-7330
City of San Jacinto Page 1 Updated 3/16/2023 5:14 PM

ALONSO LEDEZMA, MAYOR

CRYSTAL RUIZ, MAYOR PRO TEM

PHIL AYALA, COUNCILMEMBER

BRIAN HAWKINS, COUNCILMEMBER

VALERIE VANDEVER, COUNCILMEMBER
This City Council meeting is being conducted in-person and will be broadcast utilizing Livestream video. The City Council meeting may be observed virtually by joining the link on the City’s website.

Public Comments will only be accepted in person during the meeting or in writing to the City Clerk. Participants viewing the Livestream will not have a comment option.

For those wishing to email public comments for the March 21, 2023, City Council meeting, please submit your comments to be read aloud at the meeting by the City Clerk. Email comments to [email protected]. Please put “PUBLIC COMMENT” in the email subject line.

Email comments on matters not on the agenda must be received before the time the Mayor calls the item for Public Comments. Email comments on the agenda items must be received before the time the Mayor closes public comments on the agenda item. All email comments shall be subject to the same rules as would otherwise govern speaker comments at the Council meeting.

Electronic comments on agenda items for March 21, 2023, may only be submitted via email.

Comments via text and social media (Facebook, Twitter, etc.) will not be accepted.

Reading of Public Comments: The City Clerk will read all email comments, provided that the reading shall not exceed three (3) minutes, or such other time as the Council may provide, consistent with the time limit for speakers at a Council meeting. The email comments submitted shall become part of the record of the Council meeting.

In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the office of the City Clerk at 951-487-7330 ext. 339. Notification 48 hours prior to a meeting will enable the City to make reasonable arrangements to ensure accessibility to that meeting [28 CFR 35.102.35.104 ADA Title II].

City of San Jacinto Page 2 Updated 3/16/2023 5:14 PM

1. ORGANIZATION

1.1. Roll Call

1.2. Invocation

1.3. Pledge of Allegiance

1.4. Mayor/Council Member Reports

1.5. Late Items

2. PUBLIC COMMENTS

3. CONSENT CALENDAR

3.A. Consent Calendar - City Council

3.A.1. Waiver of Full Reading of Ordinance(s), and Reading by Title Only

3.A.2. Minutes of the Regular City Council Meeting of March 7, 2023.

RECOMMENDATION:

Staff recommends that the City Council approve the City Council Regular Meeting Minutes of March 7, 2023.

Department: City Clerk

3.A.3. Warrants and Disbursements - February 2023
RECOMMENDATION:

Staff recommends that the City Council review and approve Warrants and Disbursements for the period of February 2023 in the amount of $3,709,643.74.

Department: Finance

3.A.4. Final Update on Emergency Replacement of Water Main Line on Artesia Street, between N. Jordan Avenue and N. Algona Avenue
RECOMMENDATION:

Staff recommends that the City Council determine that the project is statutorily exempt from California Environmental Quality Act (CEQA) pursuant to Section 15269 (Emergency Projects) (b) as the activity is the emergency repair of the publicly owned service facilities (domestic water line) necessary to maintain service essential to the public health, safety or welfare as determined with the August 2, 2022, City Council Emergency Declaration; and, receive and file the report on the emergency replacement of the water main line on Artesia Street between N. Jordan Avenue and N. Algona Avenue; and, terminate the emergency action pursuant to San Jacinto Municipal Code §3.08.070(B)(1).

Department: Water
City of San Jacinto Page 3 Updated 3/16/2023 5:14 PM

3.A.5. Adopt Resolution No. 3967, Authorizing the Execution of a Surety Bond to Meet Financial Security Requirement for San Jacinto Power Community Choice Aggregation Program
RECOMMENDATION:

Staff recommends that the City Council adopt Resolution No. 3967, authorizing the execution of a surety bond and related documents to meet Financial Security Requirement for San Jacinto Power.

Department: Finance

3.A.6. Amendment No. 1 to Reimbursement Agreement for Street Improvements for Tract 31294
RECOMMENDATION:

Staff recommends that the City Council approve Amendment No.1 to the Reimbursement Agreement with D.R. Horton for Street Improvements Adjacent to Tract 31294, and authorize the City Manager to execute Amendment No. 1.

Department: Engineering

3.A.7. Change Order for Mountain Ave Rehabilitation, Ramona Expressway Improvements, and Vernon Avenue Street Improvement project (CIP No. 12-008) RECOMMENDATION:

Staff recommends that the City Council authorize the City Manager to execute a Change Order with RJ Noble, Inc to add the Cottonwood Avenue Emergency Pavement Rehabilitation and authorize $453,300 for the change order plus 10% for contingency, material testing and inspection.

Department: Engineering

3.A.8. Extension of the Service Authority Fee collected on behalf of the Riverside County Abandoned Vehicle Abatement Service Authority until May 2034 RECOMMENDATION:

Staff recommends that the City Council adopt Resolution No. 3966, a Resolution extending the established Service Authority Fee collection on behalf of the Abandoned Vehicle Abatement Program through May 31, 2034.

Department: Community Development

3.A.9. Approval and Supplemental Appropriation for the Purchase of Compact Track Loader for Public Utilities
RECOMMENDATION:

Staff recommends that the City Council approve the purchase of a new Caterpillar Model 289D3 Compact Track Loader and trailer for the Public Utilities Department, and appropriate the amount of $120,680 to Public Utilities’ Fiscal Year 22-23 budget.

Department: Streets
City of San Jacinto Page 4 Updated 3/16/2023 5:14 PM

4. DISCUSSION ITEMS

4.1. Annual Financial Report, SAS 114 Report, and GAS Report for the Fiscal Year Ended June 30, 2022
RECOMMENDATION:

Staff recommends that the City Council receive and file the Annual Financial Report of the City of San Jacinto for the fiscal year ended June 30, 2022, as well as the “SAS 114” Report, and the “GAS” Report.

Department: Finance

4.2. Approval to Execute Agreements Related to the San Jacinto Power Choice Solar and Battery Residential Program
RECOMMENDATION:

Staff recommends that the City Council grant to the City Manager, or his designees, the authority to execute all contracts and make any non-substantive changes, related to the San Jacinto Power Choice Solar and Battery Residential Program.

Department: Finance

4.3. Requirements and Process for Development
RECOMMENDATION:

Staff recommends that the City Council receive and file this report.

Department: Community Development

4.4. Resolution No. 3968, Adopting the City of San Jacinto Rules of Decorum Policy RECOMMENDATION:

Staff recommends that the City Council approve Resolution No. 3968:
 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN

JACINTO, CALIFORNIA, ADOPTING THE CITY OF SAN JACINTO

RULES OF DECORUM POLICY
Department: City Attorney

4.5. International Council of Shopping Centers RECON 2023 RECOMMENDATION:

Staff recommends that the City Council authorize travel requests for up to two City Councilmembers to attend the International Council of Shopping Centers (ICSC) RECON, Las Vegas, on May 21-23, 2023.

Department: Economic Development / Special Projects

5. CITY MANAGER UPDATE

6. FUTURE REQUESTS FROM CITY COUNCIL TO CITY MANAGER

7. ADJOURNMENT
City of San Jacinto Page 5 Updated 3/16/2023 5:14 PM
DOCUMENTS RELATED TO OPEN SESSION AGENDAS (SB343) - Any public record relating to an open session agenda item that is distributed within 72 hours prior to the meeting is available for public inspection at the public counter located in the Administration Building of City Hall, 595 S. San Jacinto Avenue, San Jacinto, CA 92583.

I, Julia Espinoza, City Clerk of the City of San Jacinto, do hereby certify that I caused to be posted the foregoing agenda this 16th day of March 2023 as requested by law.

Julia Espinoza, City Clerk
March 21, 2023
TO: City Council
REQUESTED BY: Julia Espinoza, City Clerk
APPROVED BY: Robert A. Johnson, City Manager
SUBJECT: Regular Meeting Minutes of March 7, 2023
RECOMMENDATION:

Staff recommends that the City Council approve the City Council Regular Meeting Minutes of March 7, 2023.

ATTACHMENTS:

March 7, 2023 City Council Regular Meeting Minutes

3.A.2
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ALONSO LEDEZMA, MAYOR

CRYSTAL RUIZ, MAYOR PRO TEM

PHIL AYALA, COUNCILMEMBER

BRIAN HAWKINS, COUNCILMEMBER

VALERIE VANDEVER, COUNCILMEMBER

ACTION MINUTES
CITY COUNCIL – REGULAR MEETING
TUESDAY, MARCH 7, 2023
5:30 PM CLOSED SESSION
6:30 PM OPEN SESSION
LIVE STREAM LINK: www.sanjacintoca.gov

COMMUNITY CENTER
625 S. PICO AVENUE
SAN JACINTO, CA 92583
951-487-7330

1. ORGANIZATION
Mayor Ledezma called the meeting to order at 6:30 p.m.

1.1. Public Comments on Closed Session Items

1.2. Closed Session

1.2.1. CONFERENCE WITH LEGAL COUNSEL – REAL PROPERTY

NEGOTIATIONS
Government Code §54956.8
Property APNs: 437-072-004, 005, 006, 009, and 010
City Negotiators: Rob Johnson, City Manager; Bob Brady, Special Projects Director; Craig Hayes, Assistant City Attorney
Under Negotiation: Price and Terms

1.3. Closed Session Report
Deputy City Attorney Craig Hayes indicated that Mayor Ledezma recused himself from Closed Session due to a conflict of interest.

There was no reportable action from Closed Session.

1.4. Roll Call
City Clerk Julia Espinoza conducted the roll call:

Present: Mayor Alonso Ledezma, Mayor Pro Tem Crystal Ruiz, Councilmember Phil Ayala, Councilmember Brian Hawkins, Councilmember Valerie Vandever

3.A.2.a
Packet Pg. 7
Attachment: March 7, 2023 City Council Regular Meeting Minutes (Regular Meeting Minutes of March 7, 2023)

City Council Regular Meeting Action Minutes March 7, 2023

1.5. Invocation
Mayor Pro Tem Ruiz gave the invocation.

1.6. Pledge of Allegiance
Councilmember Ayala led the Pledge of Allegiance.

1.7. Special Presentation(s)/Recognition(s)

1.7.1. Proclamation for Women’s History Month 2023, read by Councilmember Hawkins

1.7.2. Employee Longevity Recognition presented by the Human Resource Director Kim Hitchcock

1.8. Mayor/Council Member Reports
Councilmembers provided their reports.

1.9. Late Items
There were no late items.

2. PUBLIC COMMENTS
There were eight (8) public comments:
 Kathi Shaner
 Marianne Derowin
 Cesar
 Eric Johnson
 Jose Gomez
 Norm Kyriss
 Alicia V. Marquez
 Noemi Gonzalez

3. CONSENT CALENDAR

3.A. Consent Calendar - City Council

3.A.1. Waiver of Full Reading of Ordinance(s), and Reading by Title Only

3.A.2. Minutes of the Regular City Council Meeting of February 21, 2023/City Clerk/Approved

3.A.2.a
Packet Pg. 8
Attachment: March 7, 2023 City Council Regular Meeting Minutes (Regular Meeting Minutes of March 7, 2023)

City Council Regular Meeting Action Minutes March 7, 2023

3.A.3. Treasurer’s Report at January 31, 2023/Finance/Approved

3.A.4. Update on Emergency Replacement of Water Main Line on Artesia Street, between N. Jordan Avenue and N. Algona Avenue 2022/Water/Approved

3.A.5. Second Reading of Ordinance No. 23-01, Authorizing the levy of Special Tax in Community Facilities District No. 2020-1/ /Finance/Approved

3.A.6. Subdivision Agreement for Public Improvement and Security for KB Homes’ Tract 32247/Engineering/Approved

3.A.7. Emergency Solutions Grant – CV2 Amendment # 3/City Manager/Approved M/S/C (Hawkins/Ayala) to approve the Consent Calendar. Motion carried 5/0.

Ayes: Vandever, Hawkins, Ayala, Ruiz, Ledezma
Nays: None

Absent: None
Abstain: None

4. CITY MANAGER UPDATE
City Manager Robert A. Johnson provided the City Manager Update for the month of February.

5. FUTURE REQUESTS FROM CITY COUNCIL TO STAFF

6. ADJOURNMENT
With no further business before the City Council, Mayor Ledezma adjourned the meeting at 8:16 p.m.

3.A.2.a
Packet Pg. 9
Attachment: March 7, 2023 City Council Regular Meeting Minutes (Regular Meeting Minutes of March 7, 2023)

City Council Regular Meeting Action Minutes March 7, 2023 CITY OF SAN JACINTO:
_________________________
Alonso Ledezma, Mayor
ATTEST:
____________________________
Julia Espinoza, City Clerk

Approved as read:

Approved as amended:

3.A.2.a
Packet Pg. 10
Attachment: March 7, 2023 City Council Regular Meeting Minutes (Regular Meeting Minutes of March 7, 2023) March 21, 2023
TO: City Council
REQUESTED BY: Erika Gomez, Finance Director
APPROVED BY: Robert A. Johnson, City Manager
SUBJECT: Warrants and Disbursements - February 2023
RECOMMENDATION:

Staff recommends that the City Council review and approve Warrants and Disbursements for the period of February 2023 in the amount of $3,709,643.74.

DISCUSSION:

The City Council, in its oversight role, formally reviews disbursements of City funds made by Accounts Payable warrants, bi-weekly payrolls, and electronic funds (wire) transfers. The following information is provided for such review and approval:

Warrants/Wire Pay Date Amount
Accounts Payable: #140265-140546 Various 1,357,979.27
Payroll: Pay Period # 3 #253827-253834 02/09/2023 234,119.82 Includes Warrants, Direct Deposits, Taxes, Garnishments Payroll: Pay Period # 4 #253835-253841 02/23/2023 221,396.73 Includes Warrants, Direct Deposits, Taxes, Garnishments Electronic Funds Various 1,896,147.92
Total Disbursements – Period of February 1-28, 2023 $ 3,709,643.74

Prepared by: Tessa Murphy, Account Clerk III
Note: Payroll information is on file in the Finance Department.

FISCAL IMPACT:

Expenditures by warrant, payroll direct deposit, and electronic funds (wire) transfers have been appropriated.

ATTACHMENTS:

3.A.3
Packet Pg. 11
Warrant Register February 28, 2023

3.A.3
Packet Pg. 12
Warrant Register
City of San Jacinto 02/28/2023

Check
Number
Check Date Vendor Name Invoice Number Description Account Number
Transaction
Amount
Check
Total
140265 2/3/2023 Alliance diesel, inc. 3700 Bit report 010-4140-410.33-50 140.00 140.00 140266 2/3/2023 Appleone employment services 01-6540321 W/e 01/21/23 011-1700-417.10-04 298.20 596.40 01-6540321 W/e 01/21/23 011-3300-431.10-04 298.20
140267 2/3/2023 Aramark uniform service 5880199412 Floor mats 010-4200-410.34-05 50.87 985.00 5880199418 Uniform service 010-4140-410.21-35 68.26
5880199418 Uniform service 055-4170-450.21-35 71.39
5880199418 Uniform service 050-9000-450.21-35 62.16
5880199411 Uniform service 010-7100-410.21-35 52.34
5880199416 Uniform service 010-4150-410.21-35 679.98
140268 2/3/2023 Babcock laboratories, inc. CA32216-0278 General physical analysis 050-9000-450.30-90 33.71 249.47 CA31639-0278 Coliforms by mmo/mug&hpc 050-9000-450.30-90 89.90 CA31640-0278 Coliforms by mmo/mug&hpc 050-9000-450.30-90 17.98 CA31723-0278 Coliforms by mmo/mug&hpc 050-9000-450.30-90 89.90 CA31724-0278 Coliforms by mmo/mug&hpc 050-9000-450.30-90 17.98 140269 2/3/2023 Bank of america business card BOA013023 Fms accessories 024-3100-431.21-35 270.79 2,157.13 BOA013023 Fms accessories 010-0000-201.20-45 -21.79
BOA013023 Amazon 024-3100-431.21-35 489.33
BOA013023 Amazon 010-3100-431.21-10 271.86
BOA013023 Amazon 010-3100-431.21-10 79.66
BOA013023 Evenbrite 010-3100-431.31-20 250.00
BOA013023 Beaumont safe & firearms 024-3100-431.21-35 817.28 140270 2/3/2023 Bcc benefit coordinators (dental) BCCD013023 February 2022 premium 085-0000-202.21-32 4,676.40 4,741.40 BCCD013023 February 2022 premium 065-0000-201.08-64 65.00 140271 2/3/2023 Caceo/ california association of 200024025 Webinar 010-3320-431.31-20 40.00 40.00 140272 2/3/2023 Cadd microsystems, inc S030032383 Bluebeam revu training 011-1700-417.30-90 2,200.00 2,200.00 140273 2/3/2023 Calpers supplemental income plansCALPERS013023Sip #452544 085-0000-202.21-29 6,760.67 6,760.67 140274 2/3/2023 Cellhire usa llc 3031255 Small iridium rental 010-3130-431.21-18 56.67 113.34 3031266 Small iridium rental 010-3130-431.21-18 56.67
140275 2/3/2023 Coldwell banker abr/property mgmtWATER012623 Refund water deposit 050-0000-229.08-70 78.32 78.32

3.A.3.a
Packet Pg. 13
Attachment: Warrant Register February 28, 2023 (Warrants and Disbursements - February 2023) Warrant Register
City of San Jacinto 02/28/2023

Check
Number
Check Date Vendor Name Invoice Number Description Account Number
Transaction
Amount
Check
Total
140276 2/3/2023 Complete paperless solutions, llc 3744 Laserfiche svcs 017-2290-418.34-05 4,500.00 4,500.00 140277 2/3/2023 Concentra (occupational health ctr)77986523 Dot physical 010-1210-412.30-90 124.00 242.00 77909535 Dot physical & vaccine 010-1210-412.30-90 118.00 140278 2/3/2023 Dangelo co inc. S1501786.001 Parts & supplies 050-9000-450.21-12 816.83 816.83 140279 2/3/2023 Daniel west king WATER012623 Refund water deposit 050-0000-229.08-70 165.83 165.83 140280 2/3/2023 Daudert, brianna DAUDERT011923Tuition reimbursement 010-2500-425.31-20 1,093.75 1,093.75 140281 2/3/2023 Dave's hauling co, inc 1202023 Street clean up 010-4150-410.34-05 330.00 660.00 1192023 Street & channel cleanup 307-8831-500.34-05 330.00 140282 2/3/2023 Detail garage murrieta inc 461 Towels 010-3200-431.33-50 115.46 1,051.33 485 Car polish & buffing pads 010-3200-431.33-50 142.82 489 Car wash supplies 034-3200-431.33-10 793.05
140283 2/3/2023 Dr horton los angeles WATER012623 Refund credit balance 050-0000-308.09-10 49.60 650.22 WATER012623 Refund water deposit 050-0000-229.08-70 83.73 WATER012623 Refund water deposit 050-0000-229.08-70 86.00 WATER012623 Refund water deposit 050-0000-229.08-70 96.57 WATER012623 Refund water deposit 050-0000-229.08-70 62.33 WATER012623 Refund water deposit 050-0000-229.08-70 92.29 WATER012623 Refund water deposit 050-0000-229.08-70 77.44 WATER012623 Refund water deposit 050-0000-229.08-70 102.26 140284 2/3/2023 Employment development department L1315603856 Cares act charges 010-1210-412.11-28 3,726.00 3,726.00 140285 2/3/2023 Employment screening services, inc48569840590 Screening svcs 010-1210-412.30-90 71.00 71.00 140286 2/3/2023 Empower retirement, llc EMPOWER013023Group #109947 085-0000-202.21-29 850.00 850.00 140287 2/3/2023 Engie services (formerly opterra) 90050479 O & m fees 050-9000-450.34-05 2,406.33 2,823.16 90050478 M & v fees 050-9000-450.34-05 416.83
140288 2/3/2023 Executive image landscape & maint802 January 2023 repairs 025-7252-410.34-05 229.00 2,416.00 802 January 2023 repairs 025-7250-410.34-05 15.00
802 January 2023 repairs 025-7100-410.34-05 31.00
802 January 2023 repairs 025-7250-410.34-05 49.00
802 January 2023 repairs 025-7252-410.34-05 80.00

3.A.3.a
Packet Pg. 14
Attachment: Warrant Register February 28, 2023 (Warrants and Disbursements - February 2023) Warrant Register
City of San Jacinto 02/28/2023

Check
Number
Check Date Vendor Name Invoice Number Description Account Number
Transaction
Amount
Check
Total
140288 2/3/2023 Executive image landscape & maint802 January 2023 repairs 025-7250-410.34-05 17.00 2,416.00 802 January 2023 repairs 025-7252-410.34-05 60.00
802 January 2023 repairs 025-7250-410.34-05 148.00
802 January 2023 repairs 025-7252-410.34-05 307.00
802 January 2023 repairs 025-7252-410.34-05 230.00
802 January 2023 repairs 322-8831-500.34-05 94.00
802 January 2023 repairs 302-8831-500.34-05 37.00
802 January 2023 repairs 331-8831-500.34-05 7.00
802 January 2023 repairs 307-8831-500.34-05 7.00
802 January 2023 repairs 025-7252-410.34-05 31.00
802 January 2023 repairs 368-8831-500.34-05 44.00
802 January 2023 repairs 025-7252-410.34-05 8.00
802 January 2023 repairs 367-8831-500.34-05 135.00
801 December 2022 repairs 309-8831-500.34-05 76.00
801 December 2022 repairs 025-7250-410.34-05 17.00
801 December 2022 repairs 322-8831-500.34-05 266.00
801 December 2022 repairs 339-8831-500.34-05 10.00
801 December 2022 repairs 310-8831-500.34-05 80.00
801 December 2022 repairs 302-8831-500.34-05 37.00
801 December 2022 repairs 331-8831-500.34-05 45.00
801 December 2022 repairs 334-8831-500.34-05 64.00
801 December 2022 repairs 025-7251-410.34-05 105.00
801 December 2022 repairs 025-7252-410.34-05 14.00
801 December 2022 repairs 025-7252-410.34-05 17.00
801 December 2022 repairs 320-8831-500.34-05 15.00
801 December 2022 repairs 316-8831-500.34-05 37.00
801 December 2022 repairs 025-7252-410.34-05 57.00
801 December 2022 repairs 025-7252-410.34-05 47.00
140289 2/3/2023 Eyemed vision care 165627382 February 2023 premium 085-0000-202.21-35 1,297.04 1,313.92

3.A.3.a
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Attachment: Warrant Register February 28, 2023 (Warrants and Disbursements - February 2023) Warrant Register
City of San Jacinto 02/28/2023

Check
Number
Check Date Vendor Name Invoice Number Description Account Number
Transaction
Amount
Check
Total
140289 2/3/2023 Eyemed vision care 165627382 February 2023 premium 065-0000-201.08-64 16.88 1,313.92 140290 2/3/2023 Fedex corporation 8-007-17161 Freight 011-3300-431.21-65 42.76 235.35 8-007-17161 Freight 010-1400-414.21-65 73.19
8-007-17161 Freight 065-0000-211.21-02 38.05
8-013-95747 Freight 065-0000-211.21-02 38.95
8-013-95747 Freight 011-3300-431.21-65 42.40
140291 2/3/2023 Grainger 9568190657 Infrared camera 050-9000-450.21-12 799.34 799.34 140292 2/3/2023 Hdl coren & cone, inc SIN024968 Prop tax jan-march 2023 010-2500-425.30-90 3,722.20 3,722.20 140293 2/3/2023 Hemet valley tool, inc. 168160 Fuel & oil 010-4140-410.21-12 65.25 65.25 140294 2/3/2023 Hirsch pipe & supply co., inc. 8684599 Head plug 050-9000-450.21-12 7.87 7.87 140295 2/3/2023 Hitchcock, kimberly HITCHCOCK012523 Meeting refreshments 010-1210-412.30-90 65.61 65.61 140296 2/3/2023 Home depot credit services WP57374181 Light bulbs 034-3200-431.33-10 84.88 84.88 140297 2/3/2023 Hr coach llc dba train me today 42B2140B-0001-1Pu training 2/9/23 010-1210-412.30-90 950.00 950.00 140298 2/3/2023 Icma retirement/mission square 6106900 Group #300434 085-0000-202.21-29 5,065.79 5,719.75 6106900 Group #300434 085-0000-202.21-28 653.96
140299 2/3/2023 Inland empire landscape, inc. 40091 Maintenance december 2022 025-7250-410.34-05 350.00 48,491.83 40091 Maintenance december 2022 025-7100-410.34-05 800.00 40091 Maintenance december 2022 301-8831-500.34-05 2,411.75 40091 Maintenance december 2022 303-8831-500.34-05 1,813.95 40091 Maintenance december 2022 305-8831-500.34-05 604.65 40091 Maintenance december 2022 306-8831-500.34-05 460.00 40091 Maintenance december 2022 307-8831-500.34-05 2,720.93 40091 Maintenance december 2022 308-8831-500.34-05 2,741.08 40091 Maintenance december 2022 311-8831-500.34-05 1,660.00 40091 Maintenance december 2022 313-8831-500.34-05 1,662.79 40091 Maintenance december 2022 321-8831-500.34-05 2,157.17 40091 Maintenance december 2022 323-8831-500.34-05 377.91 40091 Maintenance december 2022 325-8831-500.34-05 478.68 40091 Maintenance december 2022 326-8831-500.34-05 1,728.30

3.A.3.a
Packet Pg. 16
Attachment: Warrant Register February 28, 2023 (Warrants and Disbursements - February 2023) Warrant Register
City of San Jacinto 02/28/2023

Check
Number
Check Date Vendor Name Invoice Number Description Account Number
Transaction
Amount
Check
Total
140299 2/3/2023 Inland empire landscape, inc. 40091 Maintenance december 2022 327-8831-500.34-05 2,164.11 48,491.83 40091 Maintenance december 2022 329-8831-500.34-05 1,058.14 40091 Maintenance december 2022 330-8831-500.34-05 1,700.00 40091 Maintenance december 2022 332-8831-500.34-05 1,284.88 40091 Maintenance december 2022 338-8831-500.34-05 1,058.14 40091 Maintenance december 2022 340-8831-500.34-05 65.00 40091 Maintenance december 2022 341-8831-500.34-05 604.65 40091 Maintenance december 2022 343-8831-500.34-05 982.56 40091 Maintenance december 2022 345-8831-500.34-05 1,148.83 40091 Maintenance december 2022 346-8831-500.34-05 735.66 40091 Maintenance december 2022 351-8831-500.34-05 476.67 40091 Maintenance december 2022 353-8831-500.34-05 1,216.67 40091 Maintenance december 2022 355-8831-500.34-05 498.84 40091 Maintenance december 2022 359-8831-500.34-05 346.67 40091 Maintenance december 2022 362-8831-500.34-05 434.00 40091 Maintenance december 2022 363-8831-500.34-05 3,048.45 40091 Maintenance december 2022 364-8831-500.34-05 108.33 40091 Maintenance december 2022 365-8831-500.34-05 305.85 40091 Maintenance december 2022 376-8831-500.34-05 1,257.17 40091 Maintenance december 2022 386-8831-500.34-05 250.00 40091 Maintenance december 2022 349-8831-500.34-05 1,728.00 40092 Valve checks dec 2022 025-7250-410.34-05 126.00
40092 Valve checks dec 2022 025-7100-410.34-05 126.00
40092 Valve checks dec 2022 308-8831-500.34-05 558.00
40092 Valve checks dec 2022 313-8831-500.34-05 366.00
40092 Valve checks dec 2022 321-8831-500.34-05 378.00
40092 Valve checks dec 2022 323-8831-500.34-05 60.00
40092 Valve checks dec 2022 326-8831-500.34-05 510.00
40092 Valve checks dec 2022 332-8831-500.34-05 264.00

3.A.3.a
Packet Pg. 17
Attachment: Warrant Register February 28, 2023 (Warrants and Disbursements - February 2023) Warrant Register
City of San Jacinto 02/28/2023

Check
Number
Check Date Vendor Name Invoice Number Description Account Number
Transaction
Amount
Check
Total
140299 2/3/2023 Inland empire landscape, inc. 40092 Valve checks dec 2022 343-8831-500.34-05 480.00 48,491.83 40092 Valve checks dec 2022 345-8831-500.34-05 534.00
40092 Valve checks dec 2022 346-8831-500.34-05 270.00
40092 Valve checks dec 2022 362-8831-500.34-05 168.00
40092 Valve checks dec 2022 364-8831-500.34-05 12.00
40092 Valve checks dec 2022 365-8831-500.34-05 30.00
40092 Valve checks dec 2022 351-8831-500.34-05 132.00
40092 Valve checks dec 2022 311-8831-500.34-05 438.00
40092 Valve checks dec 2022 338-8831-500.34-05 282.00
40092 Valve checks dec 2022 353-8831-500.34-05 60.00
40092 Valve checks dec 2022 376-8831-500.34-05 432.00
40092 Valve checks dec 2022 303-8831-500.34-05 210.00
40092 Valve checks dec 2022 325-8831-500.34-05 132.00
40092 Valve checks dec 2022 329-8831-500.34-05 348.00
40092 Valve checks dec 2022 305-8831-500.34-05 42.00
40092 Valve checks dec 2022 307-8831-500.34-05 198.00
40092 Valve checks dec 2022 301-8831-500.34-05 258.00
40092 Valve checks dec 2022 355-8831-500.34-05 72.00
40092 Valve checks dec 2022 306-8831-500.34-05 60.00
40092 Valve checks dec 2022 341-8831-500.34-05 168.00
40092 Valve checks dec 2022 359-8831-500.34-05 156.00
40092 Valve checks dec 2022 327-8831-500.34-05 324.00
40092 Valve checks dec 2022 386-8831-500.34-05 72.00
40092 Valve checks dec 2022 330-8831-500.34-05 114.00
40092 Valve checks dec 2022 330-8831-500.34-05 114.00
40092 Valve checks dec 2022 349-8831-500.34-05 198.00
40092 Valve checks dec 2022 363-8831-500.34-05 360.00
140300 2/3/2023 J and l properties WATER012623 Refund water deposit 050-0000-229.08-70 256.09 256.09 140301 2/3/2023 Jim's backflow service JIMS011923A Backflow test 025-7100-410.34-05 50.00 100.00

3.A.3.a
Packet Pg. 18
Attachment: Warrant Register February 28, 2023 (Warrants and Disbursements - February 2023) Warrant Register
City of San Jacinto 02/28/2023

Check
Number
Check Date Vendor Name Invoice Number Description Account Number
Transaction
Amount
Check
Total
140301 2/3/2023 Jim's backflow service JIMS011923B Backflow test 025-7100-410.34-05 50.00 100.00 140302 2/3/2023 Lift energy construction WATER012623 Refund credit balance 050-0000-308.09-10 9.58 9.58 140303 2/3/2023 Liftoff, llc 6944ADD6 Office 365 plan 017-2290-418.34-05 80.00 80.00 140304 2/3/2023 Nbs local government solutions, inc202301-1082 Consulting services 199-9999-425.40-01 10,000.00 13,801.18 202301-1081 Prof svc through 12/31/22 400-0000-229.07-00 775.00 202301-1080 Prof svc through 12/31/22 400-0000-229.07-00 3,026.18 140305 2/3/2023 Opendoor labs inc WATER012623 Refund water deposit 050-0000-229.08-70 102.01 170.89 WATER012623 Refund water deposit 050-0000-229.08-70 68.88 140306 2/3/2023 Overnight industrial supply,inc. 24297 Nitrile gloves 055-4170-450.21-12 215.33 215.33 140307 2/3/2023 Plumbers depot, inc. PD-52831 Leader hose 055-4170-450.21-12 442.23 442.23 140308 2/3/2023 Sc fuels 2308746-IN Fuel 050-9000-450.21-12 2,102.59 2,102.59 140309 2/3/2023 Southern california edison SCE013023 Electricity services 010-2500-425.35-14 42.77 8,144.71 SCE013023 Electricity services 010-3100-431.35-14 1,775.16 SCE013023 Electricity services 010-4150-410.35-14 175.86 SCE013023 Electricity services 010-6500-425.35-14 225.14 SCE013023 Electricity services 010-7100-410.35-14 65.85 SCE013023 Electricity services 025-7100-410.35-14 366.06 SCE013023 Electricity services 025-7250-410.35-14 297.54 SCE013023 Electricity services 025-7251-410.35-14 14.46 SCE013023 Electricity services 025-7252-410.35-14 701.56 SCE013023 Electricity services 025-7260-410.35-14 2,721.65 SCE013023 Electricity services 050-9000-450.35-14 107.80 SCE013023 Electricity services 308-8831-500.35-14 46.05 SCE013023 Electricity services 311-8831-500.35-14 59.14 SCE013023 Electricity services 320-8831-500.35-14 151.91 SCE013023 Electricity services 325-8831-500.35-14 14.93 SCE013023 Electricity services 327-8831-500.35-14 103.24 SCE013023 Electricity services 331-8831-500.35-14 46.47 SCE013023 Electricity services 338-8831-500.35-14 15.05

3.A.3.a
Packet Pg. 19
Attachment: Warrant Register February 28, 2023 (Warrants and Disbursements - February 2023) Warrant Register
City of San Jacinto 02/28/2023

Check
Number
Check Date Vendor Name Invoice Number Description Account Number
Transaction
Amount
Check
Total
140309 2/3/2023 Southern california edison SCE013023 Electricity services 339-8831-500.35-14 14.91 8,144.71 SCE013023 Electricity services 341-8831-500.35-14 32.44 SCE013023 Electricity services 342-8831-500.35-14 42.00 SCE013023 Electricity services 343-8831-500.35-14 133.36 SCE013023 Electricity services 362-8831-500.35-14 77.90 SCE013023 Electricity services 368-8831-500.35-14 14.70 SCE013023 Electricity services 376-8831-500.35-14 82.56 SCE013023 Electricity services 402-8835-500.35-14 40.39 SCE013023 Electricity services 010-4150-410.35-14 419.27 SCE013023 Electricity services 010-4150-410.35-14 111.96 SCE013023 Electricity services 321-8831-500.35-14 5.59
SCE013023 Electricity services 322-8831-500.35-14 18.32 SCE013023 Electricity services 323-8831-500.35-14 5.59
SCE013023 Electricity services 343-8831-500.35-14 5.59
SCE013023 Electricity services 367-8831-500.35-14 6.11
SCE013023 Electricity services 369-8831-500.35-14 11.18 SCE013023 Electricity services 375-8831-500.35-14 6.91
SCE013023 Electricity services 385-8831-500.35-14 5.53
SCE013023 Electricity services 304-8831-500.35-14 2.71
SCE013023 Electricity services 310-8831-500.35-14 1.16
SCE013023 Electricity services 312-8831-500.35-14 7.24
SCE013023 Electricity services 318-8831-500.35-14 7.44
SCE013023 Electricity services 319-8832-500.35-14 9.68
SCE013023 Electricity services 321-8831-500.35-14 8.76
SCE013023 Electricity services 322-8831-500.35-14 31.02 SCE013023 Electricity services 323-8831-500.35-14 8.76
SCE013023 Electricity services 324-8831-500.35-14 7.44
SCE013023 Electricity services 333-8831-500.35-14 0.67
SCE013023 Electricity services 334-8831-500.35-14 1.54

3.A.3.a
Packet Pg. 20
Attachment: Warrant Register February 28, 2023 (Warrants and Disbursements - February 2023) Warrant Register
City of San Jacinto 02/28/2023

Check
Number
Check Date Vendor Name Invoice Number Description Account Number
Transaction
Amount
Check
Total
140309 2/3/2023 Southern california edison SCE013023 Electricity services 335-8831-500.35-14 1.76 8,144.71 SCE013023 Electricity services 336-8831-500.35-14 2.02
SCE013023 Electricity services 337-8831-500.35-14 1.13
SCE013023 Electricity services 339-8831-500.35-14 2.22
SCE013023 Electricity services 342-8831-500.35-14 0.87
SCE013023 Electricity services 343-8831-500.35-14 8.76
SCE013023 Electricity services 359-8831-500.35-14 19.36 SCE013023 Electricity services 367-8831-500.35-14 10.34 SCE013023 Electricity services 369-8831-500.35-14 17.52 SCE013023 Electricity services 372-8831-500.35-14 7.44
SCE013023 Electricity services 380-8831-500.35-14 7.24
SCE013023 Electricity services 383-8831-500.35-14 7.44
SCE013023 Electricity services 388-8831-500.35-14 7.24
140310 2/3/2023 Staples business advantage, inc. 3527891234 Office supplies 010-2500-425.21-10 85.70 1,267.23 3527891234 Office supplies 010-1200-412.21-10 11.40
3527891238 Office supplies 010-3320-431.21-10 50.46
3527891238 Office supplies 011-1700-417.21-10 2.09
3527891240 Office supplies 010-3320-431.21-10 29.30
3527891240 Office supplies 010-2500-425.21-10 555.52
3527891241 Office supplies 010-2500-425.21-10 20.40
3527891241 Office supplies 011-1700-417.21-10 50.04
3527891243 Office supplies 010-3100-431.21-10 462.32
140311 2/3/2023 Superior ready mix concrete, l.p. 327907 Concrete 010-4150-410.21-12 355.62 355.62 140312 2/3/2023 Talley metal supply, inc. 65713 Tubes 327-8831-500.34-05 86.17 86.17 140313 2/3/2023 The altum group 8292 Prof svc through 12/25/22 065-0000-211.21-02 4,694.75 4,694.75 140314 2/3/2023 The retail coach, llc 4051 Travel expenses 010-9600-960.34-05 400.26 5,400.26 4095 Retail recruit & dev plan 010-9600-960.34-05 5,000.00 140315 2/3/2023 United healthcare ins co.,inc(hmo) 0033349198 February 2023 premium 085-0000-202.21-39 50,763.72 53,044.71 0033349198 February 2023 premium 065-0000-201.08-64 2,280.99

3.A.3.a
Packet Pg. 21
Attachment: Warrant Register February 28, 2023 (Warrants and Disbursements - February 2023) Warrant Register
City of San Jacinto 02/28/2023

Check
Number
Check Date Vendor Name Invoice Number Description Account Number
Transaction
Amount
Check
Total
140316 2/3/2023 Unitedhealthcare ins (ppo) 819593605665 February 2023 premium 085-0000-202.21-39 4,072.21 4,072.21 140317 2/3/2023 Usa blue book 236617 Male connector tubes 050-9000-450.21-12 54.02 3,556.02 236719 Aquatap pro tapping kit 050-9000-450.21-12 3,502.00 140318 2/3/2023 Verizon wireless 9925407026 Telephone services 010-1100-411.35-17 280.55 4,406.82 9925407026 Telephone services 010-1100-411.21-80 746.24 9925407026 Telephone services 010-1200-412.35-17 98.51
9925407026 Telephone services 011-1700-417.35-17 147.90 9925407026 Telephone services 010-3100-431.35-17 247.40 9925407026 Telephone services 011-3300-431.35-17 143.82 9925407026 Telephone services 010-3320-431.35-17 572.67 9925407026 Telephone services 010-4140-410.35-17 114.07 9925407026 Telephone services 010-4140-410.21-80 637.49 9925407026 Telephone services 010-4150-410.35-17 330.17 9925407026 Telephone services 010-4200-410.35-17 87.53
9925407026 Telephone services 010-7100-410.35-17 113.05 9925407026 Telephone services 010-7101-410.35-17 11.34
9925407026 Telephone services 017-2290-418.35-17 260.52 9925407026 Telephone services 050-9000-450.35-17 328.17 9925407026 Telephone services 050-9000-450.21-80 95.74
9925407026 Telephone services 055-4170-450.35-17 80.29
9925407026 Telephone services 010-1110-411.35-17 50.58
9925407026 Telephone services 010-2500-425.35-17 60.78
140319 2/3/2023 Vince mac donald WATER012623 Refund credit balance 050-0000-308.09-10 19.08 19.08 140320 2/3/2023 Vulcan materials co 73533230 Asphalt 010-4150-410.21-12 444.74 1,246.63 73531897 Asphalt 010-4150-410.21-12 300.08
73529268 Asphalt 010-4150-410.21-12 299.12
73525546 Asphalt 010-4150-410.21-12 202.69
140321 2/3/2023 Williamson, derek WILLIAMSN013023 Tuition reimbursement 010-2500-425.31-20 250.00 250.00 140322 2/3/2023 Yanez, crystal v. YANEZ013023 Tuition reimbursement 010-2500-425.31-20 250.00 250.00

3.A.3.a
Packet Pg. 22
Attachment: Warrant Register February 28, 2023 (Warrants and Disbursements - February 2023) Warrant Register
City of San Jacinto 02/28/2023

Check
Number
Check Date Vendor Name Invoice Number Description Account Number
Transaction
Amount
Check
Total
140323 2/3/2023 Yarnall, rene YARNALL013023Tuition reimbursement 010-2500-425.31-20 298.49 298.49 140324 2/3/2023 Yellow jacket drilling svcs, llc YJD22586CA Work completed 199-9999-425.40-01 202,823.80 192,682.61 YJD22586CA Work completed 199-9999-425.40-01 -202,823.80 YJD22586CA Work completed 199-9999-425.40-01 202,823.80 YJD22586CA Retention withheld 199-9999-425.40-01 -10,141.19 140325 2/10/2023 Abm janitorial services 17794188 January 2023 services 010-3100-431.34-05 2,896.65 2,896.65 140326 2/10/2023 Anady's trophies, inc. 119085 Plaque 010-3100-431.21-10 84.83 390.41 119138 Name plates & wall holder 010-3100-431.21-10 101.95 119086 Name plate & holder 010-3100-431.21-10 33.98
119151 Double plated laser run 010-3100-431.21-10 169.65 140327 2/10/2023 Appleone employment services 01-6547059 W/e 1/28/23 011-1700-417.10-04 198.80 397.60 01-6547059 W/e 1/28/23 011-3300-431.10-04 198.80
140328 2/10/2023 Aramark uniform service 5880205265 Floor mats 010-4200-410.34-05 50.87 353.18 5880205264 Uniform service 010-7100-410.21-35 53.24
5880205269 Uniform service 010-4150-410.21-35 76.09
5880205272 Uniform service 010-4140-410.21-35 68.26
5880205272 Uniform service 055-4170-450.21-35 42.56
5880205272 Uniform service 050-9000-450.21-35 62.16
140329 2/10/2023 B & w pipe & supply 171960 Dri-splice 010-7100-410.21-12 159.06 187.75 171952 Couplings 025-7252-410.34-05 28.69
140330 2/10/2023 Babcock laboratories, inc. CB30206-0278 Coliforms by mmo/mug&hpc 050-9000-450.30-90 17.98 107.88 CB30147-0278 Coliforms by mmo/mug&hpc 050-9000-450.30-90 89.90 140331 2/10/2023 Beato, miguel BEATO020623 Reimburse h/d/v expenses 010-2500-425.11-90 30.00 30.00 140332 2/10/2023 Bio-tox laboratories, inc. 43863 Analysis 010-3100-431.34-05 1,970.60 2,693.15 43864 Analysis 010-3100-431.34-05 722.55
140333 2/10/2023 Business oriented software solutionBDKSUB23024532Subscription renewal 017-2290-418.34-05 2,844.00 2,844.00 140334 2/10/2023 Cal-state towing 7527 Towing svcs 010-3100-431.30-90 630.00 1,260.00 7530 Towing svcs 010-3100-431.30-90 630.00
140335 2/10/2023 California society of 200015654 Conference registration 010-1400-414.31-20 470.00 570.00

3.A.3.a
Packet Pg. 23
Attachment: Warrant Register February 28, 2023 (Warrants and Disbursements - February 2023) Warrant Register
City of San Jacinto 02/28/2023

Check
Number
Check Date Vendor Name Invoice Number Description Account Number
Transaction
Amount
Check
Total
140335 2/10/2023 California society of 200016326 Training course 010-1400-414.31-20 100.00 570.00 140336 2/10/2023 Cash, jim CASH020623 Reimburse h/d/v expenses 010-2500-425.11-90 125.00 125.00 140337 2/10/2023 Central county united way UNITEDWAY013123 January 2023 contribution 085-0000-202.21-80 4.00 4.00 140338 2/10/2023 Chen, frank (fu-kai) CHEN020623 Reimburse h/d/v expenses 010-2500-425.11-90 543.94 543.94 140339 2/10/2023 Civiltec engineering inc 47619 Svcs through dec 2022 199-9999-425.40-01 7,650.00 7,650.00 47619 Svcs through dec 2022 199-9999-425.40-01 -7,650.00 47619 Svcs through dec 2022 199-9999-425.40-01 7,650.00 140340 2/10/2023 Code publishing company, inc GC0009893 Municipal code web update 010-1110-411.34-05 2,805.50 2,805.50 140341 2/10/2023 Complete towing & recovery 2733 Oil change 010-3100-431.33-50 123.77 123.77 140342 2/10/2023 Coney, kyle CONEY020623 Reimburse h/d/v expenses 010-2500-425.11-90 351.05 351.05 140343 2/10/2023 Crafco inc 9402867147 Cold patch bulk 010-4150-410.21-12 4,702.06 4,702.06 140344 2/10/2023 Crime scene cleaners 20230104 Biohazard clean up 010-3100-431.34-05 1,450.00 1,450.00 140345 2/10/2023 Cues, inc 627570 Software support plan 055-4170-450.21-10 981.00 981.00 140346 2/10/2023 Dave's hauling co, inc 013123TRASH Trash service jan 2023 301-8831-500.34-05 60.00 16,718.00 013123TRASH Trash service jan 2023 307-8831-500.34-05 30.00 013123TRASH Trash service jan 2023 308-8831-500.34-05 120.00 013123TRASH Trash service jan 2023 311-8831-500.34-05 330.00 013123TRASH Trash service jan 2023 313-8831-500.34-05 120.00 013123TRASH Trash service jan 2023 320-8831-500.34-05 180.00 013123TRASH Trash service jan 2023 321-8831-500.34-05 90.00 013123TRASH Trash service jan 2023 322-8831-500.34-05 162.00 013123TRASH Trash service jan 2023 325-8831-500.34-05 120.00 013123TRASH Trash service jan 2023 326-8831-500.34-05 180.00 013123TRASH Trash service jan 2023 327-8831-500.34-05 90.00 013123TRASH Trash service jan 2023 329-8831-500.34-05 90.00 013123TRASH Trash service jan 2023 330-8831-500.34-05 120.00 013123TRASH Trash service jan 2023 331-8831-500.34-05 90.00 013123TRASH Trash service jan 2023 332-8831-500.34-05 120.00 013123TRASH Trash service jan 2023 338-8831-500.34-05 125.00

3.A.3.a
Packet Pg. 24
Attachment: Warrant Register February 28, 2023 (Warrants and Disbursements - February 2023) Warrant Register
City of San Jacinto 02/28/2023

Check
Number
Check Date Vendor Name Invoice Number Description Account Number
Transaction
Amount
Check
Total
140346 2/10/2023 Dave's hauling co, inc 013123TRASH Trash service jan 2023 341-8831-500.34-05 60.00 16,718.00 013123TRASH Trash service jan 2023 343-8831-500.34-05 60.00 013123TRASH Trash service jan 2023 345-8831-500.34-05 120.00 013123TRASH Trash service jan 2023 346-8831-500.34-05 90.00 013123TRASH Trash service jan 2023 353-8831-500.34-05 48.00 013123TRASH Trash service jan 2023 355-8831-500.34-05 24.00 013123TRASH Trash service jan 2023 362-8831-500.34-05 30.00 013123TRASH Trash service jan 2023 363-8831-500.34-05 150.00 013123TRASH Trash service jan 2023 367-8831-500.34-05 90.00 013123TRASH Trash service jan 2023 376-8831-500.34-05 639.00 013123TRASH Trash service jan 2023 025-7252-410.34-05 30.00 013123TRASH Trash service jan 2023 025-7252-410.34-05 60.00 013123TRASH Trash service jan 2023 025-7252-410.34-05 30.00 013123TRASH Trash service jan 2023 025-7252-410.34-05 30.00 013123TRASH Trash service jan 2023 025-7100-410.34-05 30.00 013123TRASH Trash service jan 2023 025-7100-410.34-05 150.00 013123TRASH Trash service jan 2023 025-7100-410.34-05 909.00 013123TRASH Trash service jan 2023 025-7252-410.34-05 1,557.00 013123TRASH Trash service jan 2023 025-7100-410.34-05 90.00 013123TRASH Trash service jan 2023 025-7100-410.34-05 150.00 013123TRASH Trash service jan 2023 025-7250-410.34-05 210.00 013123TRASH Trash service jan 2023 010-7100-410.34-05 30.00 013123TRASH Trash service jan 2023 010-3100-431.34-05 30.00 013123TRASH Trash service jan 2023 010-4150-410.34-05 320.00 1282023 Easement clean up 010-4150-410.34-05 250.00
1302023 January 2023 streets 010-4150-410.34-05 9,504.00 140347 2/10/2023 Dewey pest control inc. 15664785 Febuary 2023 services 010-2500-425.34-05 56.00 121.00 15657142 Febuary 2023 services 034-3200-431.34-05 65.00 140348 2/10/2023 Digital assurance certification llc 62356 Annual fee 042-8501-450.30-90 800.00 2,500.00

3.A.3.a
Packet Pg. 25
Attachment: Warrant Register February 28, 2023 (Warrants and Disbursements - February 2023) Warrant Register
City of San Jacinto 02/28/2023

Check
Number
Check Date Vendor Name Invoice Number Description Account Number
Transaction
Amount
Check
Total
140348 2/10/2023 Digital assurance certification llc 62356 Annual fee 045-8800-450.30-90 800.00 2,500.00 62356 Annual fee 187-9700-470.30-90 900.00
140349 2/10/2023 Division of the state architect DSA796013023 4th qtr 2022 state fee 065-0000-201.09-08 2,648.00 264.80 DSA796013023 4th qtr 2022 state fee 010-0000-310.07-96 -2,383.20 140350 2/10/2023 Empire welding supply, inc. 4080 Repairs 326-8831-500.34-05 110.66 331.98 4080 Repairs 376-8831-500.34-05 110.66
4080 Repairs 327-8831-500.34-05 110.66
140351 2/10/2023 Esgil-safebuilt, llc 84753 Plan review 011-3300-431.30-90 2,470.32 2,470.32 140352 2/10/2023 Fedex corporation 8-021-03190 Freight 065-0000-211.21-02 75.46 200.17 8-021-03190 Freight 400-0000-229.07-00 124.71
140353 2/10/2023 Figueroa, david FIGUEROA020123Reimburse d4 exam fees 050-9000-450.31-20 130.00 550.00 FIGUEROA020623Reimburse h/d/v expenses 010-2500-425.11-90 420.00 140354 2/10/2023 Fm lock and safe,inc. 122761 Trilogy alarm lock 010-3100-431.33-10 2,069.54 2,069.54 140355 2/10/2023 Frontier communications FRONTIER020623Telephone services 010-3100-431.35-16 200.43 543.94 FRONTIER020623Telephone services 010-4200-410.35-16 289.86 FRONTIER020623Telephone services 010-6500-425.35-16 53.65 140356 2/10/2023 Gha technologies,inc. 101273174 Hp laser jet pro printer 017-2290-418.40-45 856.95 856.95 140357 2/10/2023 Goldstar asphalt products 21660 Supplies 010-4150-410.21-12 564.61 564.61 140358 2/10/2023 Govconnection, inc 73684162 Surface laptop 017-2290-418.40-45 1,936.03 1,936.03 140359 2/10/2023 Hargis, caleb HARGIS020623 Reimburse h/d/v expenses 010-2500-425.11-90 575.00 575.00 140360 2/10/2023 Hasa inc 869143 Multi-chlor 050-9000-450.21-12 295.37 1,136.05 869144 Multi-chlor 050-9000-450.21-12 431.70
869145 Multi-chlor 050-9000-450.21-12 408.98
140361 2/10/2023 Hemet industrial supply 59149 Duct tape & wrench 010-4150-410.21-12 111.61 111.61 140362 2/10/2023 Hemet valley tool, inc. 168344 Air filter 010-4140-410.33-50 18.43 131.38 168309 Air filter, rope & grease 050-9000-450.21-12 112.95 140363 2/10/2023 High tech auto care, inc. 16500 Smog inspection 010-3100-431.33-50 41.74 41.74 140364 2/10/2023 Hitchcock, kimberly HITCHCOCK020623 Training snacks 010-1210-412.30-90 24.88 24.88

3.A.3.a
Packet Pg. 26
Attachment: Warrant Register February 28, 2023 (Warrants and Disbursements - February 2023) Warrant Register
City of San Jacinto 02/28/2023

Check
Number
Check Date Vendor Name Invoice Number Description Account Number
Transaction
Amount
Check
Total
140365 2/10/2023 Home depot credit services 5343896 Supplies 010-7101-410.21-12 348.54 2,132.07 5343896 Supplies 010-2500-425.33-10 73.96
7343020 Supplies 331-8831-500.34-05 284.06
0014896 Supplies 010-4150-410.21-12 636.99
9014943 Supplies 050-9000-450.21-12 788.52
140366 2/10/2023 Image source 25AR1569953 Xerox copies 010-4200-410.34-05 116.39 1,703.49 25AR1569953 Xerox copies 010-3100-431.34-05 310.32
25AR1569953 Xerox copies 010-2500-425.34-05 1,276.78
140367 2/10/2023 Inland valley plumbing 7556 Restroom repairs 010-2500-425.33-10 125.00 125.00 140368 2/10/2023 Ipermit 020223REFUNDPermit cancelled 011-0000-303.02-21 173.80 196.01 020223REFUNDPermit cancelled 011-0000-308.06-01 2.14
020223REFUNDPermit cancelled 011-0000-308.06-30 20.07
140369 2/10/2023 J & m air conditioning (dba) I-2710-1 Maintenance work 010-3100-431.33-10 744.00 1,418.44 23273888 A/c repairs 010-2500-425.33-10 85.00
23331228 Replace faulty ignition 010-7400-425.33-10 589.44 140370 2/10/2023 Jim's backflow service JIMS012423 Backflow test & repair 346-8831-500.34-05 208.90 208.90 140371 2/10/2023 Lake hemet municipal water districtLHMWD020623 Utility water services 367-8831-500.35-10 45.06 412.50 LHMWD020623 Utility water services 367-8831-500.35-10 45.06 LHMWD020623 Utility water services 302-8831-500.35-10 57.56 LHMWD020623 Utility water services 322-8831-500.35-10 264.82 140372 2/10/2023 Liftoff, llc 6987REN2023 Office 365 plan 017-2290-418.34-05 9,222.00 9,222.00 140373 2/10/2023 Marquez, ernest MARQUEZ020623Reimburse h/d/v expenses 010-2500-425.11-90 15.00 15.00 140374 2/10/2023 Meza, ivan MEZA013023 Reimburse work boots 055-4170-450.21-35 350.00 350.00 140375 2/10/2023 Minuteman press, inc. 64607 161 weekly notices 048-1400-414.36-10 161.60 161.60 140376 2/10/2023 Mullen, arthur MULLEN020623Reimburse h/d/v expenses 010-2500-425.11-90 38.52 38.52 140377 2/10/2023 National safety compliance, inc. 92713 Annual epn report 010-4150-410.34-05 8.00 286.00 92713 Annual epn report 010-4150-410.34-05 7.00
92713 Annual epn report 010-4150-410.34-05 8.00
92713 Annual epn report 010-7100-410.34-05 7.00

3.A.3.a
Packet Pg. 27
Attachment: Warrant Register February 28, 2023 (Warrants and Disbursements - February 2023) Warrant Register
City of San Jacinto 02/28/2023

Check
Number
Check Date Vendor Name Invoice Number Description Account Number
Transaction
Amount
Check
Total
140377 2/10/2023 National safety compliance, inc. 92713 Annual epn report 010-7100-410.34-05 24.00 286.00 92713 Annual epn report 050-9000-450.34-05 7.00
92580 Dqf online 010-4150-410.34-05 20.00
92580 Dqf online 010-7100-410.34-05 15.00
92580 Dqf online 050-9000-450.34-05 20.00
92580 Dqf online 055-4170-450.34-05 10.00
92580 Dqf online 010-4140-410.34-05 10.00
92791 Annual administration fee 010-1210-412.34-05 150.00 140378 2/10/2023 Nutrien ag solutions,inc(crop prod) 50198512 Weeding supplies 010-4140-410.21-14 2,457.16 2,457.16 140379 2/10/2023 Padilla, miguel PADILLA020623Reimburse h/d/v expenses 010-2500-425.11-90 81.99 81.99 140380 2/10/2023 Perma INV16 Qtr 3 worker's comp prem 010-1210-412.11-20 56,114.25 56,114.25 140381 2/10/2023 Prill, thomas PRILL020623 Reimburse travel expenses 010-1400-414.31-20 595.33 595.33 140382 2/10/2023 Quadient leasing usa, inc. N9782919 Lease 2/28/23-5/27/23 010-2500-425.11-90 1,202.28 1,202.28 140383 2/10/2023 R.a.rispalje construction 511 Remove & replace sidewalk 010-4150-410.34-05 7,064.00 7,064.00 140384 2/10/2023 Randel,travis RANDEL020223Supplies-tyler testing 011-3300-431.30-90 304.52 304.52 140385 2/10/2023 Riverside county PU0000005567 Fleet fuel dec 2022 010-4140-410.21-70 689.02 5,004.66 PU0000005567 Fleet fuel dec 2022 055-4170-450.21-70 416.52 PU0000005567 Fleet fuel dec 2022 050-9000-450.21-70 1,151.14 PU0000005567 Fleet fuel dec 2022 010-7100-410.21-70 597.05 PU0000005567 Fleet fuel dec 2022 010-3320-431.21-70 261.27 PU0000005567 Fleet fuel dec 2022 011-3300-431.21-70 277.79 PU0000005567 Fleet fuel dec 2022 010-3100-431.21-70 154.14 PU0000005567 Fleet fuel dec 2022 010-4150-410.21-70 1,457.73 140386 2/10/2023 Riverside county info technology PE0000000710 3 set 024-3100-431.34-05 466.02 466.02 140387 2/10/2023 Robin gilliland consulting RGC013123 January 2023 consult svcs 010-9500-950.34-05 5,985.00 5,985.00 140388 2/10/2023 Sanderson, cheynne SANDERSON020623 Reimburse h/d/v expenses 010-2500-425.11-90 25.00 25.00 140389 2/10/2023 Scott equipment, inc E00101 Rhino led light tower 010-4150-410.40-45 38,197.50 38,197.50 140390 2/10/2023 Securtec district patrol, inc. 0123-SJA January 2023 services 056-4150-410.34-05 7,749.84 7,749.84

3.A.3.a
Packet Pg. 28
Attachment: Warrant Register February 28, 2023 (Warrants and Disbursements - February 2023) Warrant Register
City of San Jacinto 02/28/2023

Check
Number
Check Date Vendor Name Invoice Number Description Account Number
Transaction
Amount
Check
Total
140391 2/10/2023 Southern california edison SCE020723 Electricity services 010-4150-410.35-14 92.34 14,270.65 SCE020723 Electricity services 010-6100-425.35-14 2,079.28 SCE020723 Electricity services 010-6500-425.35-14 196.05 SCE020723 Electricity services 010-7100-410.35-14 16.72 SCE020723 Electricity services 025-7260-410.35-14 270.69 SCE020723 Electricity services 050-9000-450.35-14 9,279.31 SCE020723 Electricity services 308-8831-500.35-14 51.72 SCE020723 Electricity services 311-8831-500.35-14 66.70 SCE020723 Electricity services 320-8831-500.35-14 196.93 SCE020723 Electricity services 321-8831-500.35-14 209.76 SCE020723 Electricity services 323-8831-500.35-14 49.00 SCE020723 Electricity services 325-8831-500.35-14 16.67 SCE020723 Electricity services 327-8831-500.35-14 137.30 SCE020723 Electricity services 331-8831-500.35-14 96.92 SCE020723 Electricity services 338-8831-500.35-14 16.84 SCE020723 Electricity services 339-8831-500.35-14 16.70 SCE020723 Electricity services 342-8831-500.35-14 54.63 SCE020723 Electricity services 343-8831-500.35-14 65.48 SCE020723 Electricity services 353-8831-500.35-14 23.96 SCE020723 Electricity services 362-8831-500.35-14 113.65 SCE020723 Electricity services 368-8831-500.35-14 50.34 SCE020723 Electricity services 376-8831-500.35-14 368.34 SCE020723 Electricity services 376-8831-500.35-14 265.90 SCE020723 Electricity services 010-4150-410.35-14 323.35 SCE020723 Electricity services 010-4150-410.35-14 -0.04 SCE020723 Electricity services 319-8832-500.35-14 7.01
SCE020723 Electricity services 321-8831-500.35-14 5.72
SCE020723 Electricity services 323-8831-500.35-14 5.72
SCE020723 Electricity services 325-8831-500.35-14 17.70

3.A.3.a
Packet Pg. 29
Attachment: Warrant Register February 28, 2023 (Warrants and Disbursements - February 2023) Warrant Register
City of San Jacinto 02/28/2023

Check
Number
Check Date Vendor Name Invoice Number Description Account Number
Transaction
Amount
Check
Total
140391 2/10/2023 Southern california edison SCE020723 Electricity services 369-8831-500.35-14 11.43 14,270.65 SCE020723 Electricity services 403-8835-500.35-14 12.30 SCE020723 Electricity services 312-8831-500.35-14 9.12
SCE020723 Electricity services 321-8831-500.35-14 11.21 SCE020723 Electricity services 322-8831-500.35-14 40.80 SCE020723 Electricity services 323-8831-500.35-14 11.21 SCE020723 Electricity services 334-8831-500.35-14 1.41
SCE020723 Electricity services 335-8831-500.35-14 1.60
SCE020723 Electricity services 336-8831-500.35-14 1.85
SCE020723 Electricity services 337-8831-500.35-14 1.03
SCE020723 Electricity services 339-8831-500.35-14 2.02
SCE020723 Electricity services 342-8831-500.35-14 0.79
SCE020723 Electricity services 343-8831-500.35-14 11.21 SCE020723 Electricity services 367-8831-500.35-14 13.60 SCE020723 Electricity services 369-8831-500.35-14 22.42 SCE020723 Electricity services 380-8831-500.35-14 9.12
SCE020723 Electricity services 388-8831-500.35-14 9.12
SCE020723 Electricity services 343-8831-500.35-14 5.72
140392 2/10/2023 State of california dept of justice 631614 Analysis 010-3100-431.34-05 210.00 350.00 631667 Analysis 010-3100-431.34-05 140.00
140393 2/10/2023 Superior ready mix concrete, l.p. 330394 Fill sand 010-4150-410.21-12 426.51 426.51 140394 2/10/2023 Talley metal supply, inc. 65794 Angle & v-groove wheel 050-9000-450.21-12 64.95 64.95 140395 2/10/2023 Tri lake consultants, inc. 81856 General engineering svcs 010-4100-410.30-90 18,263.75 63,137.54 81113 General engineering svcs 010-4100-410.30-90 17,197.50 80110 General engineering svcs 010-4100-410.30-90 21,528.40 79749 Tr 28224-1 065-0000-201.06-47 2,403.64
75635 Wienerschnitzel 065-0000-201.06-47 174.25
75423 Sj st pave/sw imprv(cdbg) 199-9999-425.40-01 1,870.00 75458 Tahquitz sewer plans 199-9999-425.40-01 630.00

3.A.3.a
Packet Pg. 30
Attachment: Warrant Register February 28, 2023 (Warrants and Disbursements - February 2023) Warrant Register
City of San Jacinto 02/28/2023

Check
Number
Check Date Vendor Name Invoice Number Description Account Number
Transaction
Amount
Check
Total
140395 2/10/2023 Tri lake consultants, inc. 77698 Lyon & appaloosa crsswlk 199-9999-425.40-01 610.00 63,137.54 81890 Master plan revision 065-0000-211.21-02 335.00
78404 Master plan revision 065-0000-211.21-02 125.00
140396 2/10/2023 Usa blue book 244961 Hypershock & meter gasket 050-9000-450.21-12 815.40 815.40 140397 2/10/2023 Verizon wireless 9925003509 Telephone services 024-3100-431.21-90 240.20 240.20 140398 2/10/2023 Viking maintenance services llc,inc01253723 Monthly cleaning services 010-2500-425.34-05 1,384.39 2,006.37 01253723 Monthly cleaning services 010-4200-410.34-05 481.53 01253723 Monthly cleaning services 010-7400-425.34-05 140.45 140399 2/10/2023 Vulcan materials co 73540208 Asphalt 010-4150-410.21-12 539.25 1,417.41 73540207 Asphalt 010-4150-410.21-12 878.16
140400 2/10/2023 Weathers, tim WEATHERS020623 Reimburse h/d/v expenses 010-2500-425.11-90 130.54 130.54 140401 2/10/2023 Western first aid & safety, llc 74275 Aed heartsine w/ wifi 010-2500-425.34-05 3,722.64 3,722.64 140402 2/10/2023 Xerox financial services 3748161 Lease 1/7/23-2/6/23 010-4200-410.34-05 547.83 3,377.36 3748161 Lease 1/7/23-2/6/23 010-3100-431.34-05 682.14
3748161 Lease 1/7/23-2/6/23 010-2500-425.34-05 2,147.39 140403 2/10/2023 Yarnall, rene YARNALL020623Reimburse h/d/v expenses 010-2500-425.11-90 200.00 200.00 140404 2/10/2023 Youhouse, joseph YOUHOUSE020623 Reimburse h/d/v expenses 010-2500-425.11-90 60.00 60.00 140405 2/10/2023 Zubia, alfonso ZUBIA020623 Reimburse h/d/v expenses 010-2500-425.11-90 59.40 109.40 ZUBIA020123 Reimburse t1 exam fees 050-9000-450.31-20 50.00 140406 2/17/2023 Abm janitorial services 17545340 August 2022 services 010-3100-431.34-05 413.25 3,309.90 17438726 September 2022 services 010-3100-431.34-05 2,896.65 140407 2/17/2023 Adt security services, inc. 971989755 Alarm svc 2/22/23-3/21/23 010-6100-425.34-05 44.99 44.99 140408 2/17/2023 Aflac 505817 January 2023 premium 085-0000-202.21-27 1,450.86 1,450.86 140409 2/17/2023 All american fence co. 20723 Fence installation 025-7252-410.34-05 1,500.00 1,500.00 140410 2/17/2023 American fence co. inc. 2451251 Install & remove fence 010-3320-431.34-05 781.00 781.00 140411 2/17/2023 Anady's trophies, inc. 119237 Plaques 010-3100-431.21-10 154.70 154.70 140412 2/17/2023 Andy gump, inc. INV998084 Fence rent 1/25/-2/21/23 010-9600-960.34-05 92.92 278.76 INV982118 Fence rent 11/30-12/27/22 010-9600-960.34-05 92.92

3.A.3.a
Packet Pg. 31
Attachment: Warrant Register February 28, 2023 (Warrants and Disbursements - February 2023) Warrant Register
City of San Jacinto 02/28/2023

Check
Number
Check Date Vendor Name Invoice Number Description Account Number
Transaction
Amount
Check
Total
140412 2/17/2023 Andy gump, inc. INV990077 Fence rent 010-9600-960.34-05 92.92 278.76 140413 2/17/2023 Appleone employment services 01-6552303 W/e 2/4/23 010-4200-410.10-01 596.40 596.40 140414 2/17/2023 Aramark uniform service 5880211283 Floor mats 010-4200-410.34-05 50.87 815.50 5880217279 Floor mats 010-4200-410.34-05 50.87
5880217283 Uniform service 010-4140-410.21-35 72.68
5880217283 Uniform service 055-4170-450.21-35 39.64
5880217283 Uniform service 050-9000-450.21-35 63.06
5880217281 Uniform service 010-4150-410.21-35 176.77
5880217278 Uniform service 010-7100-410.21-35 53.24
5880211282 Uniform service 010-7100-410.21-35 53.24
5880211293 Uniform service 010-4140-410.21-35 57.42
5880211293 Uniform service 055-4170-450.21-35 29.73
5880211293 Uniform service 050-9000-450.21-35 91.89
5880211290 Uniform service 010-4150-410.21-35 76.09
140415 2/17/2023 Ayala, phil AYALA021423 Reimb parking & mileage 010-1100-411.31-20 198.13 198.13 140416 2/17/2023 Bank of america business card BOA021323 Staples 050-9000-450.21-10 339.14 793.00 BOA021323 Starlight manufacturing 050-9000-450.21-12 106.32 BOA021323 Awwa 050-9000-450.31-20 98.00
BOA021323 American water college 055-4170-450.31-20 199.99 BOA021323 Amazon 010-0000-300.99-99 49.55
140417 2/17/2023 Bank of america business card BOA021323 Vista print 010-4200-410.36-10 62.53 1,975.50 BOA021323 Vista print 011-1700-417.36-10 125.05
BOA021323 Vista print 017-2290-418.21-10 62.53
BOA021323 Zoom 010-1200-412.30-90 40.00
BOA021323 Capio 010-1200-412.31-20 30.00
BOA021323 Amazon 011-1700-417.21-10 65.22
BOA021323 Amazon 010-2500-425.21-10 32.61
BOA021323 Amazon 010-2500-425.21-10 30.68
BOA021323 Amazon 010-2500-425.21-10 -30.68

3.A.3.a
Packet Pg. 32
Attachment: Warrant Register February 28, 2023 (Warrants and Disbursements - February 2023) Warrant Register
City of San Jacinto 02/28/2023

Check
Number
Check Date Vendor Name Invoice Number Description Account Number
Transaction
Amount
Check
Total
140417 2/17/2023 Bank of america business card BOA021323 Amazon 010-9500-950.21-10 71.55 1,975.50 BOA021323 Amazon 010-9500-950.21-10 24.46
BOA021323 Servant leadership conf 010-1200-412.31-20 -424.00 BOA021323 Servant leadership conf 010-1200-412.31-20 -424.00 BOA021323 Valley wide foundation 010-2510-425.40-13 700.00 BOA021323 Mmasc 010-1200-412.31-20 90.00
BOA021323 Ramona bowl 010-1100-411.31-20 55.00
BOA021323 Amazon 011-1700-417.21-10 65.25
BOA021323 Amazon 011-3300-431.21-10 32.62
BOA021323 Amazon 010-3320-431.21-10 32.63
BOA021323 Vista print 010-1100-411.36-10 62.03
BOA021323 Sheraton 010-1200-412.31-20 799.29
BOA021323 Amazon 010-2500-425.21-10 33.70
BOA021323 Amazon 010-1200-412.21-10 15.06
BOA021323 Gs-11 010-1100-411.30-90 274.19
BOA021323 Vista print 010-9600-960.36-10 43.71
BOA021323 Vista print 010-9600-960.36-10 44.04
BOA021323 Vista print 010-4200-410.36-10 62.03
140418 2/17/2023 Bank of america business card BOA021323 Residence inn 010-1400-414.31-20 784.61 784.61 140419 2/17/2023 Bank of america business card BOA021323 Sheraton grand sacramento 010-1400-414.31-20 243.07 243.07 140420 2/17/2023 Bank of america business card BOA021323 Gm business interiors 010-2500-425.21-10 1,405.58 2,004.79 BOA021323 Stadium 010-1210-412.30-90 48.13
BOA021323 Stater bros 010-1210-412.30-90 27.55
BOA021323 Smart & final 010-1210-412.30-90 50.82
BOA021323 Amazon 010-2500-425.33-10 313.32
BOA021323 Amazon 010-1210-412.21-10 159.39
140421 2/17/2023 Bank of america business card BOA021323 Staples 010-4200-410.21-10 636.71 636.71 140422 2/17/2023 Bank of america business card BOA021323 Caceo 010-3320-431.31-20 130.00 254.00 BOA021323 Caceo 010-3320-431.31-20 54.00

3.A.3.a
Packet Pg. 33
Attachment: Warrant Register February 28, 2023 (Warrants and Disbursements - February 2023) Warrant Register
City of San Jacinto 02/28/2023

Check
Number
Check Date Vendor Name Invoice Number Description Account Number
Transaction
Amount
Check
Total
140422 2/17/2023 Bank of america business card BOA021323 Calbo 011-3300-431.31-20 70.00 254.00 140423 2/17/2023 Bank of america business card BOA021323 Icsc 010-9600-960.31-20 33.00 475.27 BOA021323 Icsc 010-9600-960.31-20 527.97
BOA021323 Finance charge refunded 010-9600-960.30-90 -85.70 140424 2/17/2023 Bank of america business card BOA021323 Pesticide applicators 010-4140-410.31-20 330.00 1,240.00 BOA021323 Pesticide applicators 010-7100-410.31-20 330.00 BOA021323 Irritech training 010-7100-410.31-20 280.00
BOA021323 Irritech training 010-7100-410.31-20 300.00
140425 2/17/2023 Bank of america business card BOA021323 Constant contact 010-9600-960.36-15 135.00 949.28 BOA021323 Zoom 010-1200-412.31-20 14.99
BOA021323 Sheraton 010-1200-412.31-20 799.29
140426 2/17/2023 Bank of america business card BOA021323 Gless ranch 011-3300-431.30-90 26.99 3,162.19 BOA021323 Smart & final 010-3320-431.30-90 183.88
BOA021323 Smart & final 011-1700-417.30-90 183.88
BOA021323 Gless ranch 010-3320-431.30-90 7.87
BOA021323 Gless ranch 011-1700-417.30-90 7.87
BOA021323 Fairway cafe 011-3300-431.30-90 113.74
BOA021323 Fairway cafe 011-3300-431.30-90 73.57
BOA021323 Fairway cafe 010-4200-410.30-90 87.58
BOA021323 Re-scape ca 011-1700-417.31-20 200.00
BOA021323 Re-scape ca 011-1700-417.31-20 -200.00
BOA021323 Cdtfa 010-0000-201.20-45 653.52
BOA021323 Cdtfa 010-2500-425.21-10 0.48
BOA021323 Cdtfa 010-2500-425.21-10 15.04
BOA021323 Tyler 011-1700-417.31-20 1,067.00
BOA021323 Tyler 011-3300-431.31-20 1,067.00
BOA021323 Amazon 010-2500-425.21-10 -326.23
140427 2/17/2023 Bank of america business card BOA021323 Boss desk 017-2290-418.31-20 765.00 4,877.69 BOA021323 Priceline 017-2290-418.31-20 713.80

3.A.3.a
Packet Pg. 34
Attachment: Warrant Register February 28, 2023 (Warrants and Disbursements - February 2023) Warrant Register
City of San Jacinto 02/28/2023

Check
Number
Check Date Vendor Name Invoice Number Description Account Number
Transaction
Amount
Check
Total
140427 2/17/2023 Bank of america business card BOA021323 Amazon 017-2290-418.40-45 192.41 4,877.69 BOA021323 Amazon 017-2290-418.40-45 49.58
BOA021323 Urisa 017-2290-418.30-16 93.75
BOA021323 Ring central 017-2290-418.34-20 1,484.16
BOA021323 Amazon 017-2290-418.40-45 184.86
BOA021323 Amazon 017-2290-418.40-45 65.55
BOA021323 Amazon 017-2290-418.40-45 27.18
BOA021323 Amazon 017-2290-418.21-80 61.93
BOA021323 Room alert 017-2290-418.34-05 149.95
BOA021323 Tyler technologies 017-2290-418.31-20 1,067.00 BOA021323 Ring central 017-2290-418.34-20 22.52
140428 2/17/2023 Bank of america business card BOA021323 Usps.com 010-1110-411.21-65 97.20 4,632.31 BOA021323 Usps.com 010-1110-411.21-65 133.55
BOA021323 Usps.com 010-1110-411.21-65 115.60
BOA021323 Sheraton hotel 010-1100-411.31-20 799.29
BOA021323 Sheraton hotel 010-1100-411.31-20 693.69
BOA021323 Sheraton hotel 010-1100-411.31-20 462.46
BOA021323 Sheraton hotel 010-1110-411.31-20 799.29
BOA021323 City clerk assoc of ca 010-1110-411.31-20 650.00 BOA021323 City clerk assoc of ca 010-1110-411.31-20 650.00 BOA021323 Sheraton hotel 010-0000-300.99-99 231.23
140429 2/17/2023 Bank of america business card BOA021323 Trustan koepfli 024-3100-431.21-35 400.00 526.82 BOA021323 Amazon 024-3100-431.21-90 91.83
BOA021323 Finance charge 010-3100-431.30-90 34.99
140430 2/17/2023 Bcc benefit coordinators corp 12233 Group #eia00093 085-0000-202.21-46 4,685.44 5,309.84 12233 Group #eia00093 085-0000-202.21-52 624.40
140431 2/17/2023 Boot barn inc. INV00227183 Work boots 010-4140-410.21-35 117.44 117.44 140432 2/17/2023 California society of CSMFO010123 Membership renewal 102-1400-500.30-90 50.00 225.00 300011582 Management 010-1400-414.30-16 125.00

3.A.3.a
Packet Pg. 35
Attachment: Warrant Register February 28, 2023 (Warrants and Disbursements - February 2023) Warrant Register
City of San Jacinto 02/28/2023

Check
Number
Check Date Vendor Name Invoice Number Description Account Number
Transaction
Amount
Check
Total
140432 2/17/2023 California society of INV-915 Plaque fee 010-1400-414.30-90 50.00 225.00 140433 2/17/2023 Calpers supplemental income plansCALPERS021323Sip #452544 085-0000-202.21-29 6,620.20 6,620.20 140434 2/17/2023 Cellhire usa llc 3034302 Small iridium rental 010-3130-431.21-18 56.67 113.34 3034301 Small iridium rental 010-3130-431.21-18 56.67
140435 2/17/2023 Charter communications holdings,llc0541420112722 Internet svc 017-2290-418.34-20 2,528.25 7,607.42 0541420122722 Internet svc 017-2290-418.34-20 2,528.25
0541420012723 Internet svc 017-2290-418.34-20 2,550.92
140436 2/17/2023 Clark's towing and recovery S8907 Evidence tow 010-3100-431.30-90 250.00 500.00 S8906 Evidence tow 010-3100-431.30-90 250.00
140437 2/17/2023 Corky's pest control, inc. 3275121 Six week service 010-3100-431.34-05 125.00 250.00 3305901 Six week service 010-3100-431.34-05 125.00
140438 2/17/2023 Crossflow distributing, inc. 7C2A011823 Drinking water delivery 010-3100-431.21-10 58.00 219.00 7C2-10B011823 Drinking water delivery 010-2500-425.21-10 49.00 7C2-10020823 Drinking water delivery 010-2500-425.21-10 36.00 7C2-A020823 Drinking water delivery 010-3100-431.21-10 76.00 140439 2/17/2023 D.m.c. tree care, inc 2222 Tree trimming 010-4150-410.34-05 450.00 3,450.00 2227 Tree removal 025-7100-410.34-05 3,000.00
140440 2/17/2023 Dangelo co inc. S1503616.001 Flare thread 050-9000-450.21-12 229.66 229.66 140441 2/17/2023 Dave's hauling co, inc 1272023 Easement clean up 010-4150-410.34-05 550.00 550.00 140442 2/17/2023 Eastern municipal water district EMWD021423 Utility water services 025-7100-410.35-10 703.71 21,816.68 EMWD021423 Utility water services 025-7250-410.35-10 856.97 EMWD021423 Utility water services 025-7251-410.35-10 355.03 EMWD021423 Utility water services 025-7252-410.35-10 73.61 EMWD021423 Utility water services 055-4170-450.35-10 84.92 EMWD021423 Utility water services 034-3200-431.35-10 307.92 EMWD021423 Utility water services 301-8831-500.35-10 1,148.91 EMWD021423 Utility water services 303-8831-500.35-10 277.63 EMWD021423 Utility water services 304-8831-500.35-10 57.87 EMWD021423 Utility water services 305-8831-500.35-10 819.93

3.A.3.a
Packet Pg. 36
Attachment: Warrant Register February 28, 2023 (Warrants and Disbursements - February 2023) Warrant Register
City of San Jacinto 02/28/2023

Check
Number
Check Date Vendor Name Invoice Number Description Account Number
Transaction
Amount
Check
Total
140442 2/17/2023 Eastern municipal water district EMWD021423 Utility water services 306-8831-500.35-10 685.63 21,816.68 EMWD021423 Utility water services 307-8831-500.35-10 1,384.37 EMWD021423 Utility water services 308-8831-500.35-10 408.78 EMWD021423 Utility water services 313-8831-500.35-10 457.95 EMWD021423 Utility water services 317-8831-500.35-10 22.54 EMWD021423 Utility water services 321-8831-500.35-10 346.65 EMWD021423 Utility water services 323-8831-500.35-10 346.71 EMWD021423 Utility water services 325-8831-500.35-10 22.54 EMWD021423 Utility water services 326-8831-500.35-10 376.84 EMWD021423 Utility water services 327-8831-500.35-10 493.88 EMWD021423 Utility water services 332-8831-500.35-10 479.64 EMWD021423 Utility water services 338-8831-500.35-10 1,816.39 EMWD021423 Utility water services 343-8831-500.35-10 1,192.85 EMWD021423 Utility water services 345-8831-500.35-10 303.53 EMWD021423 Utility water services 346-8831-500.35-10 363.40 EMWD021423 Utility water services 351-8831-500.35-10 188.43 EMWD021423 Utility water services 355-8831-500.35-10 22.59 EMWD021423 Utility water services 359-8831-500.35-10 447.23 EMWD021423 Utility water services 362-8831-500.35-10 118.60 EMWD021423 Utility water services 363-8831-500.35-10 646.80 EMWD021423 Utility water services 364-8831-500.35-10 27.16 EMWD021423 Utility water services 365-8831-500.35-10 93.92 EMWD021423 Utility water services 376-8831-500.35-10 81.19 EMWD021423 Utility water services 353-8831-500.35-10 55.67 EMWD021423 Utility water services 050-9000-450.35-20 5,613.67 EMWD021423 Utility water services 010-7100-410.35-10 34.37 EMWD021423 Utility water services 025-7250-410.35-10 242.99 EMWD021423 Utility water services 310-8831-500.35-10 76.50 EMWD021423 Utility water services 311-8831-500.35-10 294.60

3.A.3.a
Packet Pg. 37
Attachment: Warrant Register February 28, 2023 (Warrants and Disbursements - February 2023) Warrant Register
City of San Jacinto 02/28/2023

Check
Number
Check Date Vendor Name Invoice Number Description Account Number
Transaction
Amount
Check
Total
140442 2/17/2023 Eastern municipal water district EMWD021423 Utility water services 321-8831-500.35-10 71.41 21,816.68 EMWD021423 Utility water services 331-8831-500.35-10 126.00 EMWD021423 Utility water services 334-8831-500.35-10 26.75 EMWD021423 Utility water services 339-8831-500.35-10 27.29 EMWD021423 Utility water services 376-8831-500.35-10 233.31 140443 2/17/2023 Empower retirement, llc EMPOWER021323Group #109947 085-0000-202.21-29 850.00 850.00 140444 2/17/2023 Espinosa, cynthia ESPINOSA021423Mileage reimbursement 010-1200-412.31-20 127.73 127.73 140445 2/17/2023 Espinoza, julia ESPINOZA021423Mileage reimbursement 010-1110-411.31-20 127.73 127.73 140446 2/17/2023 Executive image landscape & maint805 Valve checks january 2023 050-9000-450.34-05 12.00 30,136.00 805 Valve checks january 2023 320-8831-500.34-05 192.00 805 Valve checks january 2023 025-7251-410.34-05 126.00 805 Valve checks january 2023 025-7250-410.34-05 42.00
805 Valve checks january 2023 025-7252-410.34-05 30.00
805 Valve checks january 2023 025-7252-410.34-05 24.00
805 Valve checks january 2023 025-7252-410.34-05 108.00 805 Valve checks january 2023 025-7252-410.34-05 54.00
805 Valve checks january 2023 334-8831-500.34-05 18.00
805 Valve checks january 2023 316-8831-500.34-05 12.00
805 Valve checks january 2023 025-7250-410.34-05 12.00
805 Valve checks january 2023 010-7100-410.34-05 18.00
805 Valve checks january 2023 319-8831-500.34-05 18.00
805 Valve checks january 2023 388-8831-500.34-05 6.00
805 Valve checks january 2023 025-7252-410.34-05 174.00 805 Valve checks january 2023 025-7252-410.34-05 138.00 805 Valve checks january 2023 025-7252-410.34-05 78.00
805 Valve checks january 2023 025-7252-410.34-05 90.00
805 Valve checks january 2023 025-7252-410.34-05 36.00
805 Valve checks january 2023 025-7252-410.34-05 48.00
805 Valve checks january 2023 025-7250-410.34-05 24.00

3.A.3.a
Packet Pg. 38
Attachment: Warrant Register February 28, 2023 (Warrants and Disbursements - February 2023) Warrant Register
City of San Jacinto 02/28/2023

Check
Number
Check Date Vendor Name Invoice Number Description Account Number
Transaction
Amount
Check
Total
140446 2/17/2023 Executive image landscape & maint805 Valve checks january 2023 025-7250-410.34-05 36.00 30,136.00 805 Valve checks january 2023 025-7250-410.34-05 72.00
803 Valve checks january 2023 302-8831-500.34-05 24.00
803 Valve checks january 2023 310-8831-500.34-05 48.00
803 Valve checks january 2023 331-8831-500.34-05 54.00
803 Valve checks january 2023 331-8831-500.34-05 18.00
803 Valve checks january 2023 025-7100-410.34-05 48.00
803 Valve checks january 2023 317-8831-500.34-05 6.00
803 Valve checks january 2023 025-7100-410.34-05 30.00
803 Valve checks january 2023 025-7100-410.34-05 36.00
803 Valve checks january 2023 025-7100-410.34-05 24.00
803 Valve checks january 2023 025-7100-410.34-05 18.00
803 Valve checks january 2023 025-7250-410.34-05 48.00
803 Valve checks january 2023 025-7100-410.34-05 54.00
803 Valve checks january 2023 339-8831-500.34-05 72.00
803 Valve checks january 2023 367-8831-500.34-05 60.00
803 Valve checks january 2023 367-8831-500.34-05 42.00
803 Valve checks january 2023 025-7252-410.34-05 42.00
803 Valve checks january 2023 025-7252-410.34-05 24.00
803 Valve checks january 2023 025-7252-410.34-05 18.00
803 Valve checks january 2023 025-7252-410.34-05 36.00
803 Valve checks january 2023 322-8831-500.34-05 102.00 803 Valve checks january 2023 322-8831-500.34-05 54.00
803 Valve checks january 2023 322-8831-500.34-05 24.00
803 Valve checks january 2023 322-8831-500.34-05 36.00
803 Valve checks january 2023 322-8831-500.34-05 24.00
803 Valve checks january 2023 309-8831-500.34-05 72.00
803 Valve checks january 2023 025-7250-410.34-05 18.00
803 Valve checks january 2023 025-7100-410.34-05 36.00

3.A.3.a
Packet Pg. 39
Attachment: Warrant Register February 28, 2023 (Warrants and Disbursements - February 2023) Warrant Register
City of San Jacinto 02/28/2023

Check
Number
Check Date Vendor Name Invoice Number Description Account Number
Transaction
Amount
Check
Total
140446 2/17/2023 Executive image landscape & maint803 Valve checks january 2023 025-7250-410.34-05 6.00 30,136.00 803 Valve checks january 2023 025-7250-410.34-05 12.00
803 Valve checks january 2023 025-7250-410.34-05 18.00
803 Valve checks january 2023 025-7100-410.34-05 120.00 803 Valve checks january 2023 025-7250-410.34-05 96.00
803 Valve checks january 2023 304-8831-500.34-05 60.00
803 Valve checks january 2023 368-8831-500.34-05 12.00
804 Maintenance january 2023 025-7250-410.34-05 84.00
804 Maintenance january 2023 010-7100-410.34-05 84.00
804 Maintenance january 2023 010-7100-410.34-05 222.00
804 Maintenance january 2023 025-7250-410.34-05 132.00
804 Maintenance january 2023 010-7100-410.34-05 132.00
804 Maintenance january 2023 025-7100-410.34-05 528.00
804 Maintenance january 2023 025-7250-410.34-05 72.00
804 Maintenance january 2023 025-7250-410.34-05 300.00
804 Maintenance january 2023 025-7100-410.34-05 360.00
804 Maintenance january 2023 025-7250-410.34-05 360.00
804 Maintenance january 2023 025-7250-410.34-05 210.00
804 Maintenance january 2023 025-7100-410.34-05 540.00
804 Maintenance january 2023 025-7250-410.34-05 48.00
804 Maintenance january 2023 025-7250-410.34-05 60.00
804 Maintenance january 2023 025-7100-410.34-05 540.00
804 Maintenance january 2023 025-7250-410.34-05 780.00
804 Maintenance january 2023 025-7250-410.34-05 600.00
804 Maintenance january 2023 010-7100-410.34-05 420.00
804 Maintenance january 2023 025-7252-410.34-05 720.00
804 Maintenance january 2023 025-7252-410.34-05 2,880.00 804 Maintenance january 2023 025-7252-410.34-05 1,080.00 804 Maintenance january 2023 025-7252-410.34-05 960.00

3.A.3.a
Packet Pg. 40
Attachment: Warrant Register February 28, 2023 (Warrants and Disbursements - February 2023) Warrant Register
City of San Jacinto 02/28/2023

Check
Number
Check Date Vendor Name Invoice Number Description Account Number
Transaction
Amount
Check
Total
140446 2/17/2023 Executive image landscape & maint804 Maintenance january 2023 025-7252-410.34-05 360.00 30,136.00 804 Maintenance january 2023 025-7252-410.34-05 360.00
804 Maintenance january 2023 025-7252-410.34-05 420.00
804 Maintenance january 2023 025-7252-410.34-05 480.00
804 Maintenance january 2023 025-7252-410.34-05 360.00
804 Maintenance january 2023 025-7252-410.34-05 360.00
804 Maintenance january 2023 025-7252-410.34-05 480.00
804 Maintenance january 2023 025-7252-410.34-05 480.00
804 Maintenance january 2023 025-7252-410.34-05 420.00
804 Maintenance january 2023 025-7252-410.34-05 480.00
804 Maintenance january 2023 025-7100-410.34-05 780.00
804 Maintenance january 2023 025-7251-410.34-05 1,020.00 804 Maintenance january 2023 025-7250-410.34-05 240.00
804 Maintenance january 2023 010-7100-410.34-05 300.00
804 Maintenance january 2023 302-8831-500.34-05 216.00
804 Maintenance january 2023 309-8831-500.34-05 1,488.00 804 Maintenance january 2023 310-8831-500.34-05 216.00
804 Maintenance january 2023 316-8831-500.34-05 48.00
804 Maintenance january 2023 317-8831-500.34-05 60.00
804 Maintenance january 2023 319-8831-500.34-05 180.00
804 Maintenance january 2023 320-8831-500.34-05 1,506.00 804 Maintenance january 2023 322-8831-500.34-05 1,363.20 804 Maintenance january 2023 331-8831-500.34-05 390.00
804 Maintenance january 2023 334-8831-500.34-05 480.00
804 Maintenance january 2023 339-8831-500.34-05 144.00
804 Maintenance january 2023 367-8831-500.34-05 360.00
804 Maintenance january 2023 368-8831-500.34-05 46.80
804 Maintenance january 2023 388-8831-500.34-05 120.00
804 Maintenance january 2023 025-7250-410.34-05 480.00

3.A.3.a
Packet Pg. 41
Attachment: Warrant Register February 28, 2023 (Warrants and Disbursements - February 2023) Warrant Register
City of San Jacinto 02/28/2023

Check
Number
Check Date Vendor Name Invoice Number Description Account Number
Transaction
Amount
Check
Total
140446 2/17/2023 Executive image landscape & maint804 Maintenance january 2023 050-9000-450.34-05 210.00 30,136.00 802 To replace ck #140288 025-7252-410.34-05 229.00
802 To replace ck #140288 025-7250-410.34-05 15.00
802 To replace ck #140288 025-7100-410.34-05 31.00
802 To replace ck #140288 025-7250-410.34-05 49.00
802 To replace ck #140288 025-7252-410.34-05 80.00
802 To replace ck #140288 025-7250-410.34-05 17.00
802 To replace ck #140288 025-7252-410.34-05 60.00
802 To replace ck #140288 025-7250-410.34-05 148.00
802 To replace ck #140288 025-7252-410.34-05 307.00
802 To replace ck #140288 025-7252-410.34-05 230.00
802 To replace ck #140288 322-8831-500.34-05 94.00
802 To replace ck #140288 302-8831-500.34-05 37.00
802 To replace ck #140288 331-8831-500.34-05 7.00
802 To replace ck #140288 307-8831-500.34-05 7.00
802 To replace ck #140288 025-7252-410.34-05 31.00
802 To replace ck #140288 368-8831-500.34-05 44.00
802 To replace ck #140288 025-7252-410.34-05 8.00
802 To replace ck #140288 367-8831-500.34-05 135.00
801 To replace ck #140288 309-8831-500.34-05 76.00
801 To replace ck #140288 025-7250-410.34-05 17.00
801 To replace ck #140288 322-8831-500.34-05 266.00
801 To replace ck #140288 339-8831-500.34-05 10.00
801 To replace ck #140288 310-8831-500.34-05 80.00
801 To replace ck #140288 302-8831-500.34-05 37.00
801 To replace ck #140288 331-8831-500.34-05 45.00
801 To replace ck #140288 334-8831-500.34-05 64.00
801 To replace ck #140288 025-7251-410.34-05 105.00
801 To replace ck #140288 025-7252-410.34-05 14.00

3.A.3.a
Packet Pg. 42
Attachment: Warrant Register February 28, 2023 (Warrants and Disbursements - February 2023) Warrant Register
City of San Jacinto 02/28/2023

Check
Number
Check Date Vendor Name Invoice Number Description Account Number
Transaction
Amount
Check
Total
140446 2/17/2023 Executive image landscape & maint801 To replace ck #140288 025-7252-410.34-05 17.00 30,136.00 801 To replace ck #140288 320-8831-500.34-05 15.00
801 To replace ck #140288 316-8831-500.34-05 37.00
801 To replace ck #140288 025-7252-410.34-05 57.00
801 To replace ck #140288 025-7252-410.34-05 47.00
140447 2/17/2023 Fedex corporation 8-034-77896 Freight 010-1200-412.21-65 37.94 146.66 8-028-27682 Freight 010-1400-414.21-65 108.72
140448 2/17/2023 Frontier communications FRONTIER021323Telephone services 010-3100-431.35-16 103.58 157.67 FRONTIER021323Telephone services 010-6100-425.35-16 54.09 140449 2/17/2023 Harris XT00172420 Blank door hangers 050-1400-414.21-10 236.71 473.42 XT00172420 Blank door hangers 055-1400-414.21-10 236.71 140450 2/17/2023 Hasa inc 870972 Multi-chlor 050-9000-450.21-12 295.37 2,567.48 864280 Multi-chlor 050-9000-450.21-12 431.70
870971 Multi-chlor 050-9000-450.21-12 568.03
864284 Multi-chlor 050-9000-450.21-12 568.03
870973 Multi-chlor 050-9000-450.21-12 363.53
864282 Multi-chlor 050-9000-450.21-12 340.82
140451 2/17/2023 Hawkins, brian HAWKINS021423Reimburse travel expenses 010-1100-411.31-20 233.33 233.33 140452 2/17/2023 Hemet valley tool, inc. 168158 Generator 010-7101-410.21-12 1,086.41 1,086.41 140453 2/17/2023 Hirsch pipe & supply co., inc. 8711720 Teflon tape 050-9000-450.21-12 50.89 584.28 8707585 Supplies 050-9000-450.21-12 74.56
8704127 Supplies 050-9000-450.21-12 159.58
8703361 Supplies 050-9000-450.21-12 7.31
8702328 Supplies 050-9000-450.21-12 4.81
8694355 Supplies 050-9000-450.21-12 287.13
140454 2/17/2023 Home depot credit services 4343964 Supplies 010-4150-410.21-12 374.24 357.92 4183195 Refund pallet fee 010-4150-410.21-12 -16.32
140455 2/17/2023 Hr coach llc dba train me today 42B2140B-0001-2Public utilities training 010-1210-412.30-90 950.00 1,900.00 42B2140B-0001-3Public utilities training 010-1210-412.30-90 950.00

3.A.3.a
Packet Pg. 43
Attachment: Warrant Register February 28, 2023 (Warrants and Disbursements - February 2023) Warrant Register
City of San Jacinto 02/28/2023

Check
Number
Check Date Vendor Name Invoice Number Description Account Number
Transaction
Amount
Check
Total
140456 2/17/2023 Hydropro solutions 0001469-IN Meters 199-9999-425.40-01 30,587.61 58,309.83 0001518-IN Meters 199-9999-425.40-01 23,280.48
0001517-IN Meters 199-9999-425.40-01 4,441.74
140457 2/17/2023 Icma retirement/mission square 6452956 Group #300434 085-0000-202.21-29 5,122.22 5,122.22 140458 2/17/2023 Iconix waterworks (us) inc. U2316004887 Non-asbestos gasket 050-9000-450.21-12 39.58 39.58 140459 2/17/2023 Inland empire landscape, inc. 40204 Valve checks dec 2022 025-7250-410.34-05 120.00 58,548.83 40204 Valve checks dec 2022 025-7100-410.34-05 126.00
40204 Valve checks dec 2022 308-8831-500.34-05 558.00
40204 Valve checks dec 2022 313-8831-500.34-05 366.00
40204 Valve checks dec 2022 321-8831-500.34-05 378.00
40204 Valve checks dec 2022 323-8831-500.34-05 60.00
40204 Valve checks dec 2022 326-8831-500.34-05 510.00
40204 Valve checks dec 2022 332-8831-500.34-05 264.00
40204 Valve checks dec 2022 343-8831-500.34-05 480.00
40204 Valve checks dec 2022 345-8831-500.34-05 534.00
40204 Valve checks dec 2022 346-8831-500.34-05 270.00
40204 Valve checks dec 2022 362-8831-500.34-05 168.00
40204 Valve checks dec 2022 364-8831-500.34-05 12.00
40204 Valve checks dec 2022 365-8831-500.34-05 30.00
40204 Valve checks dec 2022 351-8831-500.34-05 132.00
40204 Valve checks dec 2022 311-8831-500.34-05 438.00
40204 Valve checks dec 2022 338-8831-500.34-05 282.00
40204 Valve checks dec 2022 353-8831-500.34-05 60.00
40204 Valve checks dec 2022 376-8831-500.34-05 432.00
40204 Valve checks dec 2022 303-8831-500.34-05 210.00
40204 Valve checks dec 2022 325-8831-500.34-05 132.00
40204 Valve checks dec 2022 329-8831-500.34-05 348.00
40204 Valve checks dec 2022 305-8831-500.34-05 42.00
40204 Valve checks dec 2022 307-8831-500.34-05 198.00

3.A.3.a
Packet Pg. 44
Attachment: Warrant Register February 28, 2023 (Warrants and Disbursements - February 2023) Warrant Register
City of San Jacinto 02/28/2023

Check
Number
Check Date Vendor Name Invoice Number Description Account Number
Transaction
Amount
Check
Total
140459 2/17/2023 Inland empire landscape, inc. 40204 Valve checks dec 2022 301-8831-500.34-05 258.00 58,548.83 40204 Valve checks dec 2022 355-8831-500.34-05 72.00
40204 Valve checks dec 2022 306-8831-500.34-05 60.00
40204 Valve checks dec 2022 341-8831-500.34-05 168.00
40204 Valve checks dec 2022 359-8831-500.34-05 156.00
40204 Valve checks dec 2022 327-8831-500.34-05 324.00
40204 Valve checks dec 2022 386-8831-500.34-05 72.00
40204 Valve checks dec 2022 330-8831-500.34-05 114.00
40204 Valve checks dec 2022 330-8831-500.34-05 114.00
40204 Valve checks dec 2022 349-8831-500.34-05 198.00
40204 Valve checks dec 2022 363-8831-500.34-05 360.00
40204 Valve checks dec 2022 010-7100-410.34-05 6.00
40204 Valve checks dec 2022 402-8835-500.34-05 276.00
40203 Maintenance dec 2023 025-7250-410.34-05 225.00
40203 Maintenance dec 2023 025-7100-410.34-05 800.00
40203 Maintenance dec 2023 301-8831-500.34-05 2,411.75
40203 Maintenance dec 2023 303-8831-500.34-05 1,813.95
40203 Maintenance dec 2023 305-8831-500.34-05 604.65
40203 Maintenance dec 2023 306-8831-500.34-05 460.00
40203 Maintenance dec 2023 307-8831-500.34-05 2,720.93
40203 Maintenance dec 2023 308-8831-500.34-05 2,741.08
40203 Maintenance dec 2023 311-8831-500.34-05 1,660.00
40203 Maintenance dec 2023 313-8831-500.34-05 1,662.79
40203 Maintenance dec 2023 321-8831-500.34-05 2,157.17
40203 Maintenance dec 2023 323-8831-500.34-05 377.91
40203 Maintenance dec 2023 325-8831-500.34-05 478.68
40203 Maintenance dec 2023 326-8831-500.34-05 1,728.30
40203 Maintenance dec 2023 327-8831-500.34-05 2,164.11
40203 Maintenance dec 2023 329-8831-500.34-05 1,058.14

3.A.3.a
Packet Pg. 45
Attachment: Warrant Register February 28, 2023 (Warrants and Disbursements - February 2023) Warrant Register
City of San Jacinto 02/28/2023

Check
Number
Check Date Vendor Name Invoice Number Description Account Number
Transaction
Amount
Check
Total
140459 2/17/2023 Inland empire landscape, inc. 40203 Maintenance dec 2023 330-8831-500.34-05 1,700.00 58,548.83 40203 Maintenance dec 2023 332-8831-500.34-05 1,284.88
40203 Maintenance dec 2023 338-8831-500.34-05 1,058.14
40203 Maintenance dec 2023 340-8831-500.34-05 65.00
40203 Maintenance dec 2023 341-8831-500.34-05 604.65
40203 Maintenance dec 2023 343-8831-500.34-05 982.56
40203 Maintenance dec 2023 345-8831-500.34-05 1,148.83
40203 Maintenance dec 2023 346-8831-500.34-05 735.66
40203 Maintenance dec 2023 351-8831-500.34-05 476.67
40203 Maintenance dec 2023 353-8831-500.34-05 1,216.67
40203 Maintenance dec 2023 355-8831-500.34-05 498.84
40203 Maintenance dec 2023 359-8831-500.34-05 346.67
40203 Maintenance dec 2023 362-8831-500.34-05 434.00
40203 Maintenance dec 2023 363-8831-500.34-05 3,048.45
40203 Maintenance dec 2023 364-8831-500.34-05 108.33
40203 Maintenance dec 2023 365-8831-500.34-05 305.85
40203 Maintenance dec 2023 376-8831-500.34-05 1,257.17
40203 Maintenance dec 2023 386-8831-500.34-05 250.00
40203 Maintenance dec 2023 349-8831-500.34-05 1,728.00
40203 Maintenance dec 2023 010-7100-410.34-05 125.00
40203 Maintenance dec 2023 402-8835-500.34-05 9,781.00
140460 2/17/2023 Inland foundation eng. inc. 18893 Progress billing jan-feb 199-9999-425.40-01 4,740.50 10,086.50 18877 Progress billing dec 2022 199-9999-425.40-01 5,346.00 140461 2/17/2023 Inland valley plumbing 7576 Repair drinking fountain 010-2500-425.33-10 250.00 535.00 7573 Repair garbage disposal 025-7250-410.34-05 285.00
140462 2/17/2023 Inland water works supply co. S1062736.001 Macro coupling 050-9000-450.21-12 1,088.59 1,088.59 140463 2/17/2023 Innovative emergency equipment 30950 Troubleshoot breaker 010-3100-431.33-50 69.96 69.96 140464 2/17/2023 Innovative growth landscape 059 Woodchip installation 329-8831-500.34-05 10,780.00 10,780.00 140465 2/17/2023 International institute of IIMC011223 Membership renewal 011-1700-417.30-16 125.00 125.00

3.A.3.a
Packet Pg. 46
Attachment: Warrant Register February 28, 2023 (Warrants and Disbursements - February 2023) Warrant Register
City of San Jacinto 02/28/2023

Check
Number
Check Date Vendor Name Invoice Number Description Account Number
Transaction
Amount
Check
Total
140466 2/17/2023 J & m air conditioning (dba) I-25996-1 Replace faulty fan motor 010-3100-431.33-10 618.30 2,958.59 I-2711-1 Commercial maintenance 010-3100-431.33-10 946.42 23868700 Install new head unit 010-2500-425.33-10 479.25 22976668 Hvac repairs 010-2500-425.33-10 914.62
140467 2/17/2023 Jav electric 6820 Instal new leds & fan 010-3100-431.33-10 4,078.00 4,078.00 140468 2/17/2023 Jim's backflow service JIMS012623C Replace missing test cock 025-7251-410.34-05 80.00 1,633.04 JIMS012623K Backflow test 025-7250-410.34-05 50.00
JIMS012623L Backflow test 034-3200-431.33-10 50.00
JIMS012623M Backflow test 034-3200-431.33-10 75.00
JIMS012623P Backflow test 025-7250-410.34-05 50.00
JIMS012623U Backflow test 025-7250-410.34-05 100.00
JIMS012623A Backflow test 345-8831-500.34-05 50.00
JIMS012623B Backflow test 346-8831-500.34-05 318.04
JIMS012623D Backflow test 301-8831-500.34-05 50.00
JIMS012623E Backflow test 353-8831-500.34-05 100.00
JIMS012623F Backflow test 301-8831-500.34-05 50.00
JIMS012623G Backflow test 305-8831-500.34-05 100.00
JIMS012623H Backflow test 305-8831-500.34-05 50.00
JIMS012623I Backflow test 301-8831-500.34-05 50.00
JIMS012623J Backflow test 326-8831-500.34-05 50.00
JIMS012623N Backflow test 332-8831-500.34-05 50.00
JIMS012623O Backflow test 326-8831-500.34-05 50.00
JIMS012623Q Backflow test 325-8831-500.34-05 50.00
JIMS012623R Backflow test 303-8831-500.34-05 60.00
JIMS012623S Backflow test 307-8831-500.34-05 50.00
JIMS012623T Backflow test 308-8831-500.34-05 50.00
JIMS012623V Backflow test 308-8831-500.34-05 50.00
JIMS012623W Backflow test 308-8831-500.34-05 50.00
140469 2/17/2023 Kaiser foundation health plan, inc 33523268005 March 2023 premium 085-0000-202.21-39 36,567.43 36,567.43

3.A.3.a
Packet Pg. 47
Attachment: Warrant Register February 28, 2023 (Warrants and Disbursements - February 2023) Warrant Register
City of San Jacinto 02/28/2023

Check
Number
Check Date Vendor Name Invoice Number Description Account Number
Transaction
Amount
Check
Total
140470 2/17/2023 Kyle groundwater, inc. 1338 Prof svcs january 2023 199-9999-425.40-01 10,288.46 10,288.46 1338 Prof svcs january 2023 199-9999-425.40-01 -10,288.46 1338 Prof svcs january 2023 199-9999-425.40-01 10,288.46 140471 2/17/2023 Language line services 10729393 Interpretation svcs 010-3100-431.34-05 2.82 2.82 140472 2/17/2023 League of california cities 643534 Membership dues 010-2500-425.31-20 19,549.00 19,549.00 140473 2/17/2023 Littlejohn-reuland corporation 0062960 Troubleshoot receptacles 010-2500-425.33-10 300.00 300.00 140474 2/17/2023 Lor geotechnical group, inc. 18913 Final report 199-9999-425.40-01 1,500.00 1,500.00 140475 2/17/2023 Magner, tara MAGNER020623Meal per diem 010-9600-960.31-20 177.00 177.00 140476 2/17/2023 Mccall's meters, inc. 35565 Field meter test 050-9000-450.33-30 735.00 735.00 140477 2/17/2023 Meza, ivan MEZA021323 Reimburse d1 test fees 055-4170-450.31-20 126.00 126.00 140478 2/17/2023 Mystical origins, llc Q3CY2022REFUND Refund q3 tax overpayment 011-0000-308.06-82 1,180.00 1,180.00 140479 2/17/2023 Nutrien ag solutions,inc(crop prod) 50225984 Activator & turf trax 010-4150-410.21-14 862.62 862.62 140480 2/17/2023 O'reilly auto parts,inc. 5531-285908 Wiper blades 050-9000-450.33-50 85.55 346.20 5531-285557 Wiper blades 055-4170-450.33-50 39.13
5531-286259 Battery 010-4150-410.33-50 221.52
140481 2/17/2023 Online information services, inc. 1168841 Utility exchange reports 050-1400-414.34-05 93.98 254.08 1168841 Utility exchange reports 055-1400-414.34-05 93.97 468300000366 Collections transactions 050-0000-308.09-10 66.13 140482 2/17/2023 Overnight industrial supply,inc. 24136 Bathroom supplies 010-4200-410.33-10 139.74 630.59 24342 Cleaning supplies 025-7252-410.34-05 210.11
24341 Bathroom supplies 010-4200-410.33-10 280.74
140483 2/17/2023 Plumbers depot, inc. PD-52960 Supplies 050-9000-450.33-50 8,893.32 8,893.32 140484 2/17/2023 Potter ranch 2004, llc et al PR2004083122 Monumentation dep refund 065-0000-201.08-71 21,600.00 21,600.00 140485 2/17/2023 Ramona humane society, inc. COSH131223 January 2023 billings 010-3320-431.34-05 26,452.13 26,452.13 140486 2/17/2023 Regional conservation authority MSHCP02082023January 2023 mshcp fees 065-0000-201.08-81 35,523.00 35,523.00 140487 2/17/2023 Rightway site services, inc. 328703 Rent february 2023 010-3100-431.34-50 102.08 556.13 328656 Rent 1/31/23-2/27/23 010-4200-410.34-05 454.05
140488 2/17/2023 Riverside county TL0000016688 Dec 2022 costs 010-4150-410.32-05 6,912.43 6,912.43

3.A.3.a
Packet Pg. 48
Attachment: Warrant Register February 28, 2023 (Warrants and Disbursements - February 2023) Warrant Register
City of San Jacinto 02/28/2023

Check
Number
Check Date Vendor Name Invoice Number Description Account Number
Transaction
Amount
Check
Total
140489 2/17/2023 Romeril plumbing & hardware 18367 Supplies 010-3100-431.21-50 139.12 396.85 18334 Supplies 010-4140-410.21-12 47.73
18321 Supplies 010-4150-410.21-12 82.66
18341 Supplies 050-9000-450.21-12 67.78
18375 Supplies 050-9000-450.21-12 59.56
140490 2/17/2023 Row traffic safety inc 17716 Street signs 010-4150-410.21-12 1,345.46 1,345.46 140491 2/17/2023 Southern california edison SCE021423 Electricity services 010-4150-410.35-14 568.01 11,426.01 SCE021423 Electricity services 010-4200-410.35-14 397.63 SCE021423 Electricity services 010-7100-410.35-14 18.05 SCE021423 Electricity services 025-7100-410.35-14 41.80 SCE021423 Electricity services 025-7260-410.35-14 6,107.08 SCE021423 Electricity services 034-3200-431.35-14 501.15 SCE021423 Electricity services 050-9000-450.35-14 1,270.26 SCE021423 Electricity services 308-8831-500.35-14 145.23 SCE021423 Electricity services 332-8831-500.35-14 44.40 SCE021423 Electricity services 351-8831-500.35-14 15.25 SCE021423 Electricity services 355-8831-500.35-14 16.46 SCE021423 Electricity services 367-8831-500.35-14 29.53 SCE021423 Electricity services 332-8831-500.35-14 279.16 SCE021423 Electricity services 346-8831-500.35-14 448.55 SCE021423 Electricity services 010-4150-410.35-14 846.87 SCE021423 Electricity services 010-4150-410.35-14 47.41 SCE021423 Electricity services 301-8831-500.35-14 15.26 SCE021423 Electricity services 308-8831-500.35-14 4.39
SCE021423 Electricity services 309-8831-500.35-14 7.70
SCE021423 Electricity services 315-8831-500.35-14 5.20
SCE021423 Electricity services 330-8831-500.35-14 176.75 SCE021423 Electricity services 334-8831-500.35-14 0.93
SCE021423 Electricity services 335-8831-500.35-14 1.06

3.A.3.a
Packet Pg. 49
Attachment: Warrant Register February 28, 2023 (Warrants and Disbursements - February 2023) Warrant Register
City of San Jacinto 02/28/2023

Check
Number
Check Date Vendor Name Invoice Number Description Account Number
Transaction
Amount
Check
Total
140491 2/17/2023 Southern california edison SCE021423 Electricity services 336-8831-500.35-14 1.22 11,426.01 SCE021423 Electricity services 337-8831-500.35-14 0.68
SCE021423 Electricity services 339-8831-500.35-14 1.34
SCE021423 Electricity services 340-8831-500.35-14 4.39
SCE021423 Electricity services 342-8831-500.35-14 10.69 SCE021423 Electricity services 346-8831-500.35-14 4.39
SCE021423 Electricity services 347-8831-500.35-14 5.93
SCE021423 Electricity services 349-8831-500.35-14 5.93
SCE021423 Electricity services 351-8831-500.35-14 16.81 SCE021423 Electricity services 354-8831-500.35-14 5.20
SCE021423 Electricity services 357-8831-500.35-14 4.39
SCE021423 Electricity services 359-8831-500.35-14 29.39 SCE021423 Electricity services 361-8831-500.35-14 181.65 SCE021423 Electricity services 366-8831-500.35-14 5.28
SCE021423 Electricity services 371-8831-500.35-14 5.20
SCE021423 Electricity services 373-8831-500.35-14 5.20
SCE021423 Electricity services 374-8831-500.35-14 5.28
SCE021423 Electricity services 391-8831-500.35-14 27.38 SCE021423 Electricity services 308-8831-500.35-14 5.85
SCE021423 Electricity services 309-8831-500.35-14 8.99
SCE021423 Electricity services 330-8831-500.35-14 12.24 SCE021423 Electricity services 340-8831-500.35-14 5.85
SCE021423 Electricity services 346-8831-500.35-14 5.85
SCE021423 Electricity services 351-8831-500.35-14 26.52 SCE021423 Electricity services 357-8831-500.35-14 5.85
SCE021423 Electricity services 359-8831-500.35-14 21.90 SCE021423 Electricity services 366-8831-500.35-14 12.24 SCE021423 Electricity services 374-8831-500.35-14 12.24 140492 2/17/2023 Staples business advantage, inc. 3529927821 Medium blotter 010-1400-414.21-10 28.25 2,563.53

3.A.3.a
Packet Pg. 50
Attachment: Warrant Register February 28, 2023 (Warrants and Disbursements - February 2023) Warrant Register
City of San Jacinto 02/28/2023

Check
Number
Check Date Vendor Name Invoice Number Description Account Number
Transaction
Amount
Check
Total
140492 2/17/2023 Staples business advantage, inc. 3529927823 Office supplies 010-3100-431.21-10 1,625.76 2,563.53 3529081034 Office supplies 050-1400-414.21-10 131.11
3529081034 Office supplies 010-1400-414.21-10 90.18
3529081034 Office supplies 010-3320-431.21-10 28.29
3529081037 Office supplies 010-2500-425.21-10 118.33
3529081037 Office supplies 011-1700-417.21-10 2.09
3529081039 Office supplies 010-2500-425.21-10 194.72
3529081039 Office supplies 010-1200-412.21-10 96.78
3529081040 Office supplies 010-2500-425.21-10 250.11
3528402467 Credit inv 3527891238 011-1700-417.21-10 -2.09 140493 2/17/2023 State water resources control boardSWRCB021323 T-1 certificate 050-9000-450.31-20 55.00 55.00 140494 2/17/2023 Statewide traffic safety & signs 13010221 Safety signs 010-4150-410.21-12 1,458.07 1,458.07 140495 2/17/2023 Sunrise at parkhill Z22-020723 Reimburse 50% sce 322-8831-500.35-14 35.60 1,527.10 Z22-020723 Reimburse 50% lhmwd 322-8831-500.35-10 1,491.50 140496 2/17/2023 Superior ready mix concrete, l.p. 332395 Pump & mixer 010-4150-410.21-12 633.64 633.64 140497 2/17/2023 Talley metal fabrication,inc. 35198 New gate chain & repairs 010-4150-410.34-05 475.00 475.00 140498 2/17/2023 The altum group 8353 Prof fees through 1/25/23 065-0000-211.21-02 47.50 2,616.25 8355 Prof fees through 1/25/23 065-0000-211.21-02 285.00 8354 Prof fees through 1/25/23 065-0000-211.21-02 2,283.75 140499 2/17/2023 Transamerica life insurance company2504885785 January 2023 premium 085-0000-202.21-59 176.32 176.32 140500 2/17/2023 Underground service alert 120230688 Monthly ticketing 050-9000-450.34-05 148.25 188.95 22-2302778 Excavation board expenses 050-9000-450.34-05 40.70 140501 2/17/2023 United healthcare ins co.,inc(hmo) 0033361644 March 2023 premium 085-0000-202.21-39 51,073.43 53,354.42 0033361644 March 2023 premium 065-0000-201.08-64 2,280.99 140502 2/17/2023 Usa blue book 255662 Clamp on meter 050-9000-450.21-12 777.91 777.91 140503 2/17/2023 Vandever, valerie VANDEVER021423 Reimburse mileage 010-1100-411.31-20 127.73 127.73 140504 2/17/2023 Vulcan materials co 73523638 Asphalt 010-4150-410.21-12 250.91 792.08 73554621 Asphalt 010-4150-410.21-12 541.17
140505 2/17/2023 West coast arborists, inc 195705 Pruning 341-8831-500.34-05 3,588.00 3,588.00

3.A.3.a
Packet Pg. 51
Attachment: Warrant Register February 28, 2023 (Warrants and Disbursements - February 2023) Warrant Register
City of San Jacinto 02/28/2023

Check
Number
Check Date Vendor Name Invoice Number Description Account Number
Transaction
Amount
Check
Total
140506 2/17/2023 Youhouse, joseph YOUHOUSE021323 Tuition reimbursement 010-2500-425.31-20 588.00 588.00 140507 2/24/2023 American forensic nurses, inc. 77236 Pd lab services 010-3100-431.34-05 66.85 802.20 77205 Pd lab services 010-3100-431.34-05 735.35
140508 2/24/2023 Appleone employment services 01-6556896 Week ending 02/11/23 010-4200-410.10-04 795.20 795.20 140509 2/24/2023 Aramark uniform service 5880223287 Mats 010-4200-410.34-05 50.87 357.71 5880223290 Uniforms 010-4150-410.21-35 76.09
5880223293 Uniforms 010-4140-410.21-35 43.09
5880223293 Uniforms 055-4170-450.21-35 39.64
5880223293 Uniforms 050-9000-450.21-35 91.89
5880223285 Uniforms 010-7100-410.21-35 56.13
140510 2/24/2023 Arriola, steven ARRIOLA021523Medical reimb 010-2500-425.11-90 191.22 191.22 140511 2/24/2023 B & w pipe & supply 172048 P/w supplies 349-8831-500.34-05 10.81 10.81 140512 2/24/2023 Bmw motorcycles of escondido,inc.44993 Repairs pd motorcycle 024-3100-431.33-50 2,190.65 2,190.65 140513 2/24/2023 Charter communications holdings,llc0604517021123 Internet service 017-2290-418.34-20 791.45 791.45 140514 2/24/2023 Cwea ID350528-021623Membership renewal 050-9000-450.31-20 202.00 202.00 140515 2/24/2023 Dangelo co inc. S1504380.002 Copper coil 050-9000-450.21-12 6,058.24 6,058.24 140516 2/24/2023 Dave's hauling co, inc 2102023 E.s.sanderson channel sj 010-4140-410.34-05 1,848.00 1,848.00 140517 2/24/2023 Enterprise holdings, inc QUOTE# 5853337Unit# 2573wv 010-4150-410.34-50 9,279.10 18,558.19 QUOTE#5853337Unit# 2573wv 010-4140-410.34-50 9,279.09
140518 2/24/2023 Executive image landscape & maint807 Repairs feb 2023 025-7252-410.34-05 68.00 1,282.00 807 Repairs feb 2023 025-7252-410.34-05 21.00
807 Repairs feb 2023 025-7252-410.34-05 150.00
807 Repairs feb 2023 025-7252-410.34-05 126.00
807 Repairs feb 2023 025-7252-410.34-05 110.00
807 Repairs feb 2023 025-7100-410.34-05 15.00
807 Repairs feb 2023 025-7100-410.34-05 124.00
807 Repairs feb 2023 025-7100-410.34-05 101.00
807 Repairs feb 2023 025-7100-410.34-05 40.00
807 Repairs feb 2023 025-7250-410.34-05 20.00

3.A.3.a
Packet Pg. 52
Attachment: Warrant Register February 28, 2023 (Warrants and Disbursements - February 2023) Warrant Register
City of San Jacinto 02/28/2023

Check
Number
Check Date Vendor Name Invoice Number Description Account Number
Transaction
Amount
Check
Total
140518 2/24/2023 Executive image landscape & maint807 Repairs feb 2023 025-7250-410.34-05 47.00 1,282.00 807 Repairs feb 2023 010-7100-410.34-05 53.00
807 Repairs feb 2023 309-8831-500.34-05 63.00
807 Repairs feb 2023 025-7250-410.34-05 90.00
807 Repairs feb 2023 367-8831-500.34-05 28.00
807 Repairs feb 2023 302-8831-500.34-05 17.00
807 Repairs feb 2023 331-8831-500.34-05 109.00
807 Repairs feb 2023 367-8831-500.34-05 100.00
140519 2/24/2023 Figueroa, david FIGUEROA021623Reimburse h/d/v expense 010-2500-425.11-90 507.16 507.16 140520 2/24/2023 Fm lock and safe,inc. 122866 Cylinder combo change 010-4150-410.33-50 157.69 157.69 140521 2/24/2023 Hemet valley tool, inc. 168720 Item 99-misc 010-7101-410.21-12 129.41 129.41 140522 2/24/2023 Home depot credit services WE13411971 Fire sta #78 034-3200-431.33-10 857.06 857.06 140523 2/24/2023 Inland empire landscape, inc. 40313 Landscape & irrigation 345-8831-500.34-05 430.00 430.00 140524 2/24/2023 Innovative growth landscape 060 Wood chip install 353-8831-500.34-05 2,340.00 2,340.00 140525 2/24/2023 Karl's tractor service 6665 Weed abatement 010-3320-431.34-05 265.00 265.00 140526 2/24/2023 Marquez, ernest MARQUEZ021523Reimbuse h/d/v expense 010-2500-425.11-90 413.96 413.96 140527 2/24/2023 Martinez, ramon MARTINEZ021523Reimbuse h/d/v expense 010-2500-425.11-90 75.41 75.41 140528 2/24/2023 Minuteman press, inc. 64823 149 weekly notices 048-1400-414.36-10 151.72 151.72 140529 2/24/2023 Multi w systems, inc. 32330316 Irri pump replace 338-8831-500.34-05 31,999.38 31,999.38 140530 2/24/2023 O'reilly auto parts,inc. 5531-288273 Def patch truck/loader 010-4150-410.33-50 71.17 71.17 140531 2/24/2023 Press enterprise 0000559729 Advertising legal notices 048-1400-414.30-90 297.01 2,865.11 0000559729 Advert.notice hearing 400-0000-229.07-00 2,568.10 140532 2/24/2023 Riverside county info technology PE0000000770 3 sets 024-3100-431.34-05 466.02 466.02 140533 2/24/2023 Rogers,anderson,malody & scott, llp72123 Audit billing fy21/22 010-1400-414.30-90 12,500.00 14,000.00 72123 Audit billing fy21/22 187-9700-470.30-90 1,500.00 140534 2/24/2023 Shred-it usa llc/ corp 8003357619 Shredding svs 01/30/23 010-3100-431.34-05 196.51 270.77 8003357619 Shredding svs 01/30/23 010-2500-425.34-05 74.26 140535 2/24/2023 Socal gas SOCALGAS021623 Utility gas services 010-2500-425.35-12 690.24 1,952.57

3.A.3.a
Packet Pg. 53
Attachment: Warrant Register February 28, 2023 (Warrants and Disbursements - February 2023) Warrant Register
City of San Jacinto 02/28/2023

Check
Number
Check Date Vendor Name Invoice Number Description Account Number
Transaction
Amount
Check
Total
140535 2/24/2023 Socal gas SOCALGAS021623 Utility gas services 010-3100-431.35-12 320.49 1,952.57 SOCALGAS021623 Utility gas services 010-4200-410.35-12 402.64 SOCALGAS021623 Utility gas services 034-3200-431.35-12 539.20 140536 2/24/2023 Southern california edison SCE021623 Electric services 025-7260-410.35-14 2,250.01 3,339.75 SCE021623 Electric services 301-8831-500.35-14 30.89
SCE021623 Electric services 307-8831-500.35-14 349.47
SCE021623 Electric services 359-8831-500.35-14 15.27
SCE021623 Electric services 376-8831-500.35-14 284.13
SCE021623 Electric services 010-4150-410.35-14 261.92
SCE021623 Electric services 010-4150-410.35-14 60.93
SCE021623 Electric services 319-8832-500.35-14 5.66
SCE021623 Electric services 322-8831-500.35-14 16.96
SCE021623 Electric services 327-8831-500.35-14 6.44
SCE021623 Electric services 350-8831-500.35-14 6.44
SCE021623 Electric services 367-8831-500.35-14 5.65
SCE021623 Electric services 375-8831-500.35-14 6.77
SCE021623 Electric services 376-8831-500.35-14 6.44
SCE021623 Electric services 319-8832-500.35-14 8.32
SCE021623 Electric services 327-8831-500.35-14 8.15
SCE021623 Electric services 350-8831-500.35-14 8.15
SCE021623 Electric services 376-8831-500.35-14 8.15
140537 2/24/2023 Ssd alarm R-00428850 Billing march 2023 010-6500-425.34-05 38.00 648.50 R-00428850 Billing march 2023 010-2500-425.34-05 124.00 R-00428850 Billing march 2023 050-9000-450.34-05 191.50 R-00428850 Billing march 2023 010-4200-410.34-05 217.50 R-00428850 Billing march 2023 010-3100-431.34-05 77.50
140538 2/24/2023 Superion, llc (formerly sungard) 374545 March 2023 maint fees 010-1400-414.34-05 5,326.00 5,326.00 140539 2/24/2023 Superior ready mix concrete, l.p. 333773 Fill sand/slurry 010-4150-410.21-12 620.44 620.44 140540 2/24/2023 Torres, esteban GUTIERREZ021523 Reimburse h/d/v expense 010-2500-425.11-90 262.20 262.20

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Attachment: Warrant Register February 28, 2023 (Warrants and Disbursements - February 2023) Warrant Register
City of San Jacinto 02/28/2023

Check
Number
Check Date Vendor Name Invoice Number Description Account Number
Transaction
Amount
Check
Total
140541 2/24/2023 Tyler technologies, inc 025-411401 Consulting svs 011-1700-417.30-90 13,859.46 13,859.46 140542 2/24/2023 Voyager fleet systems, inc. 8691587092304 Fleet fuel 024-3100-431.21-70 278.03 3,635.20 8691587092304 Fleet fuel 055-4170-450.21-70 624.20
8691587092304 Fleet fuel 050-9000-450.21-70 1,765.20
8691587092304 Fleet fuel 010-7100-410.21-70 759.84
8691587092304 Fleet fuel 010-4150-410.21-70 207.93
140543 2/24/2023 White, kevin WHITE021523 Reimburse h/d/v expense 010-2500-425.11-90 189.93 189.93 140544 2/24/2023 Youhouse, joseph YOUHOUSE021523 Reimburse h/d/v expense 010-2500-425.11-90 76.74 76.74 140545 2/24/2023 4 west pipeline, inc. 2598 Emergency call svs 010-4150-410.34-05 7,060.36 7,060.36 140546 2/24/2023 Enterprise fm trust QUOTE# 5853337Unit# 2573wv 010-4140-410.34-50 9,279.09 18,558.19 QUOTE# 5853337Unit# 2573wv 010-4150-410.34-50 9,279.10
Total Checks 1,357,979.27

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Attachment: Warrant Register February 28, 2023 (Warrants and Disbursements - February 2023)

CITY OF SAN JACINTO
ELECTRONIC FUNDS TRANSFER REPORTFebruary 1 - 28, 2023

DATE PAYEE AMOUNT REASON
02/01/2023 Harland Clarke Check Deposit Slips 77.22
02/08/2023 CalPers Retirement 39,321.65
02/08/2023 CalPers Health Premium 439.75
02/15/2023 Quadient 2,000.00 Postage02/21/2023 US Bank 316,889.07 CFD #2002-1 Debt Service 02/21/2023 Enterprise FM Monthly Vehicle Lease & Maintenance 18,968.51 02/22/2023 Paymentus Payment Process Transaction Fees 13,955.25 02/22/2023 CalPers Retirement 39,788.66
02/23/2023 Direct Energy Business Marketing 1,012,614.75 SJ Power - Energy Purchase02/23/2023 Exelon Generation Company, LLC 199,252.99 SJ Power - Energy Purchase02/23/2023 Duran Mesa LLC SJ Power - Energy Purchase 10,114.00 02/23/2023 Calpine Energy Service 121,050.00 SJ Power - Energy Purchase & Sales02/23/2023 NRG Power Marketing 37,500.00 SJ Power - Energy Purchase02/23/2023 The Midway Sunset Cogeneration Company 81,721.00 SJ Power - Energy Purchase02/28/2023 SEIU 2,455.07 Union Dues 1,896,147.92

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Attachment: Warrant Register February 28, 2023 (Warrants and Disbursements - February 2023) March 21, 2023
TO: City Council
REQUESTED BY: Arthur Mullen, Chief of Public Utilities
APPROVED BY: Robert A. Johnson, City Manager
SUBJECT: Final Update on Artesia Main Water Line Emergency Replacement RECOMMENDATION:

Staff recommends that the City Council determine that the project is statutorily exempt from California Environmental Quality Act (CEQA) pursuant to Section 15269 (Emergency Projects) (b) as the activity is the emergency repair of the publicly owned service facilities (domestic water line) necessary to maintain service essential to the public health, safety or welfare as determined with the August 2, 2022, City Council Emergency Declaration; and, receive and file the report on the emergency replacement of the water main line on Artesia Street between N.

Jordan Avenue and N. Algona Avenue; and, terminate the emergency action pursuant to San Jacinto Municipal Code §3.08.070(B)(1).

DISCUSSION
On August 2, 2022 the San Jacinto City Council authorized the emergency replacement of the water main line on Artesia Street between N. Jordan Ave. and N. Algona Ave.. Per San Jacinto Municipal Code §3.08.070(B)(1) the City Manager is required to submit a report at every regular City Council meeting until the emergency action is terminated.

Staff contacted six pipeline construction companies and has received preliminary estimates from two interested companies – Genesis Pipeline Construction and 4 West Pipeline Services. The scope of service includes the trenching and removal of 340 feet of existing pipe, installation of new C-900 pipe at 48 inches below grade, final connection of the new line, reconnection of service lines, backfilling the trench, and paving with 3 inch asphalt.

August 16, 2022 Update
The Engineering Department is finalizing the design and specifications to receive a more accurate bid. The proposals will be evaluated based on total cost, availability to begin work, and the contractor’s experience with similar projects.

September 6, 2022 Update
Public Utilities Staff identified one additional contractor, Taylor Underground, Inc., as having interest in bidding the project. The Engineering Department issued the final design and specifications on August 23 and Staff held a site walkthrough with all three contractors on August 30. All three contractors requested clarifying information regarding details in the design specifications. Staff is working with the Engineering Department to respond to the requests for information. Once the requests for information have been answered the contractors will submit final bids and Staff will proceed with vendor selection and project award.

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September 20, 2022 Update
After providing the requested information, the City received revised bids from 4 West Pipeline, Inc. and Taylor Underground, Inc. Genesis Pipeline Construction declined to bid the project. The two proposals were evaluated for scope of work, availability, qualifications, and cost. Staff found that 4 West Pipeline’s scope of work was more detailed than Taylor Underground’s scope of work, though both proposals satisfactorily addressed the required services. Both firms also have similar qualifications and hold the appropriate credentials and licenses.

The cost proposals submitted are as follows:
4 West Pipeline, Inc.: $323,393.00
Taylor Underground, Inc.: $361,879.00
4 West Pipeline has indicated that they are able to order materials immediately after receiving a Notice to Proceed. Material ordering will take approximately three weeks, after which 4 West will mobilize to the project site and begin work. Taylor Underground did not indicate their availability to begin work.

Staff is currently working with the City Manager to confirm the vendor selection.

October 4, 2022 Update
Based on the criteria in the September 20, 2022 update, the City Manager has selected 4 West Pipeline, Inc. as the vendor for the project. The City Engineer and Engineering Department have assumed control of this project from Public Utilities. Contract documents have been prepared and sent to the vendor for execution.

October 18, 2022 Update
A pre-construction meeting was held on October 12, 2022 with 4 West Pipeline Inc., the San Jacinto Engineering Department, San Jacinto Public Utilities, RP General Construction (subcontractor), MEC, Inc. (subcontractor), and Inland Foundation Engineering (subcontractor).

All parties agreed that the Notice to Proceed will be issued with a project start date of October 17, 2022, pending the application for and approval of an encroachment permit. Working hours will be between 7:00am – 4:00pm Monday – Friday. Road access on Artesia Street will be restricted to residents and emergency services only. 4 West Pipeline, Inc. will notify residents at least 48 hours prior to any water service interruption and will limit service interruption to one day in length while service connections are tied into the new main line.

November 1, 2022 Update
4 West Pipeline, Inc. obtained its encroachment permit the week of October 17, 2022, mobilized on October 24, 2022, and began work on October 25, 2022. 4 West Pipeline, Inc. has a maximum of 60 working days to complete the project, with working hours of 7:00am – 4:00pm Monday – Friday. Road access on Artesia St. is restricted to accommodate residents and emergency services only. 4 West Pipeline, Inc. will notify residents at least 48 hours prior to any

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water service interruption and will limit service interruption to one day in length while service connections are tied into the new main line.

November 15, 2022 Update
4 West Pipeline, Inc. has removed and disposed of the old asbestos-concrete (AC) pipe from the previous road paving contractor. 4 West Pipeline Inc. has also completed the installation of the main replacement line and service lines on Artesia. A conflict with an existing natural gas line was found on Algona Ave, necessitating a minor adjustment to the water pipeline layout. Plans are being revised by the Engineering department to reflect this change.

December 6, 2022 Update
Work has been paused while the Engineering department finalizes the plan adjustment to accommodate for the existing natural gas line. Work is anticipated to resume the week of December 5.

January 3, 2023 Update
Engineering has finalized the plan adjustment to accommodate for the existing natural gas line and submitted to 4 West Pipeline for a change order quote. Change order quote is pending from 4 West Pipeline.

January 17, 2023 Update
Change order for the plan adjustment has been finalized by all parties. Installation and pressure testing will occur the week of January 16, followed by chlorination and disinfection of the new pipes. Final tie-in to the existing line is anticipated to occur the first week of February.

February 7, 2023 Update
Installation, pressure testing, chlorination, and disinfection of the new line was completed the week of January 23. Final inspections and tie-in to resident supply lines have also been completed. Contractor is currently backfilling the project area and preparing to repave the roads, at which time the project will be complete.

February 21, 2023 Update
Contractor has successfully backfilled the project area and is preparing to repave the roads.

Paving was anticipated to occur the week of February 13, but was delayed due to a rain event on February 14. Paving is expected to be completed by the March 7 Council meeting, at which time the project will be complete and a final report will be presented to Council.

March 7, 2023 Update
Contractor has completed repaving approximately 90% of the roads in the project area. The estimated project completion date was delayed due to further rain events between February 22 and March 1. Paving and striping work is set to resume the week of March 6.

March 21, 2023 Final Update

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All paving and striping work has been completed. The project was inspected by Engineering and deemed completed on March 13. The notice of completion was delivered to the City Clerk on March 16. Staff recommends that City Council terminate the emergency action pursuant to San Jacinto Municipal Code §3.08.070(B)(1), as no emergency currently exists.

FISCAL IMPACT
On August 2, 2022, the City Council approved an appropriation of $600,000 in ARPA funds to cover the cost of the project. The final cost for the project, including all change orders, is expected to be less than $400,000, but invoices and payments are still being finalized. Funding for this project comes from existing ARPA funds, account 199-9999-425-4001. There is no impact to the General Fund.

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March 21, 2023
TO: City Council
REQUESTED BY: Tom Prill, Deputy City Manager
APPROVED BY: Robert A. Johnson, City Manager
SUBJECT: Adopt Resolution No. 3967, Authorizing the Execution of a Surety Bond to Meet Financial Security Req
RECOMMENDATION:

Staff recommends that the City Council adopt Resolution No. 3967, authorizing the execution of a surety bond and related documents to meet Financial Security Requirement for San Jacinto Power.

BACKGROUND:

On December 6, 2016, City Council adopted Ordinance 16-12, Establishing a Community Choice Aggregation (CCA) program, San Jacinto Power (SJP). SJP has been serving customers since 2018.

In 2018, the CPUC issued Decision 18-05-022 (Decision) which established reentry fees and financial security requirements for CCAs. The purpose of the Financial Security Requirement (FSR) instrument is to cover reentry fees borne by the Investor Owned Utility (IOU) in the event of a mass involuntary return of CCA customers to the IOU, such as a decertification of a CCA or a CCA failure. The IOU may only withhold funds from the financial security instrument for unpaid administrative or procurement costs associated with the return of CCA customers to the IOU. Any withholding of those funds must first be approved by the CPUC.

The Decision required all CCAs, including SJP, to submit an Advice Letter with the FSR instrument to the CPUC by December 8, 2020, in order to show compliance with the Decision.

California Choice Energy Authority (CalChoice) worked with its legal team to draft the advice letter, which was submitted with a copy of an executed Letter of Credit, which was the instrument used to satisfy the FSR obligation. The FSR amount has been $147,000 since the initial posting of the Letter of Credit in 2020. The Letter of Credit, issued by River City Bank (RCB), is collateralized by a cash deposit of $147,000 in an account held with RCB in the City’s name.

The methodology used to calculate the FSR amount for CCAs is under review at the CPUC to ensure that IOUs do not unreasonably bear costs associated with CCA customer returns to the IOU. In anticipation of a change to the methodology to calculate the FSR amount which may result in an increase in the FSR amount, staff is proposing replacing the current Letter of Credit, which requires dollar-for-dollar cash collateral, with a surety bond, which is more flexible and has a 1% annual fee. Because the methodology used to calculate the FSR includes benchmarks related to energy pricing, which can move up and down depending on market conditions, staff is requesting a not to exceed amount that contemplates future volatility in the energy market.

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Currently, the estimated fee for the first year is less than $1,500. When the current Letter of Credit expires later this calendar year, the $147,000 cash collateral will be released to the City.

Based on the foregoing, staff recommends that City Council adopt Resolution No. 3967 authorizing the execution of a surety bond and related documents for the purpose of satisfying the Financial Security Requirement as required by the California Public Utilities Commission.

FISCAL IMPACT:

Fees for FY 2022-2023 are $1,470. In future years, this cost may increase to as much as $25,000 annually, depending on future regulatory changes and volatility in the energy market, but it will be included in the operating budget each year. Sufficient revenues will be generated by SJP to cover operating expenses, including surety bond fees.

ATTACHMENTS:

Resolution No. 3967 - Surety Bond FSR - 03-21-23
Staff Report - 03-21-23 - Surety Bond FSR - Surety Bond Form attachment Staff Report - 03-21-23 - Surety Bond FSR - Chubb Surety GAI

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Resolution No. 3967

STATE OF CALIFORNIA) RESOLUTION NO. 3967
COUNTY OF RIVERSIDE)ss

CITY OF SAN JACINTO)

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JACINTO

AUTHORIZING THE EXECUTION OF A SURETY BOND TO MEET

FINANCIAL SECURITY REQUIREMENT FOR SAN JACINTO POWER

COMMUNITY CHOICE AGGREGATION PROGRAM
WHEREAS, Community Choice Aggregation authorized by Assembly Bill 117, is a state law that allows cities, counties, and other authorized entities to aggregate electricity demand within their jurisdictions in order to purchase and/or generate alternative energy supplies for residents and businesses within their jurisdiction while maintaining the existing electricity provider for transmission and distribution service; and WHEREAS, on December 6, 2016, City Council adopted Ordinance 16-12, Establishing a Community Choice Aggregation program, San Jacinto Power; and WHEREAS, the California Public Utilities Code Section 394.25 requires posting of a bond or insurance sufficient to cover costs of an involuntary return of customers, also known as the Financial Security Requirement; and
WHEREAS, the minimum Financial Security Requirement is $147,000, but may increase because of market conditions or regulatory decisions; and WHEREAS, the City of San Jacinto, on behalf of San Jacinto Power, has previously satisfied the Financial Security Requirement through the issuance of a letter of credit; and
WHEREAS, the City of San Jacinto, on behalf of San Jacinto Power, now seeks to satisfy the Financial Security Requirement through the issuance of a Surety Bond.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN JACINTO DOES HEREBY RESOLVE, DETERMINE AND ORDER, AS FOLLOWS:

Section 1. The foregoing recitals are true and correct.

Section 2. That the City Manager is authorized to execute documents to enable the issuance of, and amendments to, a Surety Bond in satisfaction of the San Jacinto Power’s Financial Security Requirement.

Section 3. This resolution shall take effect immediately upon its adoption.

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Attachment: Resolution No. 3967 - Surety Bond FSR - 03-21-23 (Adopt Resolution No. 3967, Authorizing the Execution of a Surety Bond to Meet Resolution No. 3967

PASSED, APPROVED, and ADOPTED this 21st day of March, 2023, by the following vote:

AYES:

NAYS:

ABSENT:

ABSTAIN:

CITY OF SAN JACINTO:
________________________________
Alonso Ledezma, Mayor
ATTEST:

Julia Espinoza, City Clerk
APPROVED AS TO FORM:

BEST, BEST & KRIEGER, LLP.
______________________________
Michael J. Maurer, City Attorney

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Attachment: Resolution No. 3967 - Surety Bond FSR - 03-21-23 (Adopt Resolution No. 3967, Authorizing the Execution of a Surety Bond to Meet Resolution No. 3967

STATE OF CALIFORNIA)
COUNTY OF RIVERSIDE) ss

CITY OF SAN JACINTO)

CERTIFICATION
I, Julia Espinoza, City Clerk of the City of San Jacinto, DO HEREBY CERTIFY that the foregoing Resolution No. 3967 was passed, approved, and adopted at the Regular Meeting of the San Jacinto City Council held on the 21st day of March 2023, by the following vote:

AYES:

NAYS:

ABSENT:

ABSTAIN:

WITNESS MY HAND AND OFFICIAL SEAL this 21st day of March, 2023. ________________________________
Julia Espinoza, City Clerk
City of San Jacinto

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Attachment: Resolution No. 3967 - Surety Bond FSR - 03-21-23 (Adopt Resolution No. 3967, Authorizing the Execution of a Surety Bond to Meet

SURETY BOND
Bond No: [____]
Community Choice Aggregator Name: ______________________________ This Surety Bond (“Bond”), dated and effective as of [date of execution] (“Effective Date”), is issued by [Surety’s legal name], a [form of business entity and state of registration] and an admitted surety insurer authorized to transact the business of surety in the State of California (“Surety”), on behalf of CCA’s/JPA’s legal name], a [form of business entity and state of registration] (“Principal”), in favor of Southern California Edison Company, a California corporation (“SCE” or “Obligee”).

A. Principal is required to post financial security as the Financial Security Requirement (“FSR”) defined in the SCE Rule 23 (“the Tariff”).

B. Principal has elected to satisfy its obligation to post FSR by having Surety issue this Bond to Obligee, and Obligee has agreed to accept this Bond as FSR.

The Principal and Surety, each intending to be legally bound, agree as follows:

1. Payment upon Demand.
(a) Surety irrevocably and unconditionally agrees to pay to Obligee amounts not to exceed $ (One Hundred Forty-Seven Thousand U.S. Dollars) in the aggregate (“Maximum Bond Amount”), in accordance with the terms of this Bond.
(b) No later than fifteen (15) Business Days after Surety receives from Obligee a demand notice substantially in the form attached hereto as Exhibit A (“Demand Notice”), Surety shall pay to Obligee, by wire transfer of immediately available funds, the amount specified by Obligee in such Demand Notice.
(c) For purposes of this Bond, “Business Day” means any day other than a Saturday, Sunday, or a Federal Reserve Bank holiday.

2. Multiple Draws Permitted. Obligee may demand multiple payments from Surety under this Bond by providing Demand Notices to Surety from time to time in accordance herewith.

3. Principal Pays Bond Costs. Principal shall pay all commissions, charges, fees, and other costs associated with this Bond. Principal’s failure to pay any such commissions, charges, fees, or costs is not grounds for termination of this Bond.

4. Term. The term of this Bond (“Original Term”) commences on the Effective Date and ends at 5:00 p.m., California time, on [insert date that Bond’s Original Term ends] or, if such date is not a Business Day, at 5:00 p.m., California time, on the next Business Day; provided, however, that this Bond shall, subject to Section 6 hereof, be automatically renewed for a term of 365 calendar days upon the expiration of the Original Term and any renewed 365 calendar day term (“Renewed Term”).

5. Reinstatement of Bond. Notwithstanding anything to the contrary set forth herein, including but not limited to Section 6 hereof, this Bond and the obligations of Surety hereunder shall be reinstated if, at any time following (a) the termination of this Bond by its terms, or (b) the payment by Surety of the Maximum Bond Amount, any payment made by Surety to Obligee pursuant to a Demand Notice under this Bond is rescinded or must otherwise be returned by the Obligee or other person as a preference, fraudulent transfer, or otherwise, or as a result of the insolvency, bankruptcy, reorganization, dissolution or liquidation of Principal, Surety, or otherwise, and such reinstatement

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Attachment: Staff Report - 03-21-23 - Surety Bond FSR - Surety Bond Form attachment (Adopt Resolution No. 3967, Authorizing the Execution shall return the parties hereto to be bound by their obligations hereunder, all as though such rescinded or returned payment had not been made. In the event of any reinstatement of this Bond and the obligations of Surety hereunder, the then-effective term of this Bond shall end on the later of (x) the term that would have otherwise been effective hereunder, and (y) sixty (60) Business Days after the date that this Bond is reinstated.

6. Termination.
(a) Surety may terminate this Bond by providing Notice (as defined in Section 7 hereof) to each of Obligee and Principal at least sixty (60) calendar days before the expiration of the Original Term or the Renewed Term, as applicable, of Surety’s intention to terminate this Bond, in which case this Bond shall terminate as of the end of the Original Term or the Renewed Term, as applicable; provided, however, that (i) Surety’s liability under this Bond shall survive such termination and remain in full force and effect as to obligations incurred by Principal during the Original Term and each Renewed Term, or respective portion thereof, and (ii) if Principal does not provide alternative financial security consistent with the FSR obligation in the Tariff at least twenty (20) Business Days before the expiration of the Original Term or the Renewed Term, as applicable, Surety shall, no later than fifteen (15) Business Days after Surety receives from Obligee a Demand Notice, pay to Obligee, by wire transfer of immediately available funds, the amount specified by Obligee in such Demand Notice, which amount, when aggregated with all prior payments made by Surety hereunder and not previously rescinded or returned as described in Section 6 hereof, shall not exceed the Maximum Bond Amount. (b) Subject to Section 5 hereof, the obligation of the Surety to make payments pursuant to this Bond shall terminate automatically and without further notice or action upon the delivery of any payment to the Obligee pursuant to a Demand Notice which, when aggregated with all prior payments to the Obligee pursuant to a Demand Notice, equals or exceeds the Maximum Bond Amount and, if applicable, any additional amounts due to Obligee in accordance with Section 9 hereof.

7. Notice. All notices (including, without limitation, Cure Notices (as defined in Section 11(b) hereof) and Demand Notices), requests, or other communications (“Notices”) under or relating to this Bond shall be in writing and shall be delivered by facsimile or other means of electronic transmission, hand delivery, or overnight courier service, and shall be deemed delivered as follows: (a) Notice by facsimile or other means of electronic transmission or by hand delivery shall be deemed delivered on the date and at the time actually received, if received during business hours on a Business Day, and otherwise shall be deemed delivered at 8:00 a.m. on the next Business Day; and (b) Notice by overnight courier service shall be deemed delivered on the next Business Day after such Notice is sent. A party may change its designated representatives, addresses and other contact information by providing Notice of such change(s) in accordance with this Section 7. The Notice information is as follows:

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Attachment: Staff Report - 03-21-23 - Surety Bond FSR - Surety Bond Form attachment (Adopt Resolution No. 3967, Authorizing the Execution If to Principal: [CCA’s or JPA’s legal name]
[CCA’s or JPA’s address]
Attention: [Title or person’s name]
Tel No.: [Phone number]
Email Address: [Email address]
If to Obligee: Southern California Edison Company
Manager of Risk Operations and Collateral Management
2244 Walnut Grove Avenue, GO1, Q2B
Rosemead, CA 91770
Tel No.: (626) 302-3464
Email Address: [email protected]
If to Surety: [Surety’s name]
[Surety’s address]
Attention: [Title or person’s name]
Tel No.: [Phone number]
Email Address: [Email address]

8. Obligations Unconditional; Waiver of Defenses.
(a) Surety’s obligations under this Bond (i) are unconditional, irrevocable, and independent of Principal, and (ii) shall not be affected by any circumstance that constitutes a legal or equitable discharge of a surety or guarantor.
(b) Surety irrevocably and unconditionally waives any defense whatsoever to payment of amounts owing by Principal to Obligee, including, without limitation, any defense relating to the following: (i) the existence of an indebtedness of Principal to Obligee in excess of the Bond Amount; (ii) release of Principal by agreement or by operation of law; (iii) Obligee’s taking, amendment to, or release of any additional security, guaranty or surety for Principal’s obligations under the Tariff; (iv) Obligee’s waiver or election of, or failure to pursue any right or remedy available to it, including, without limitation, Obligee’s waiver or election of, or failure to pursue any right or remedy available to it under the Tariff; (v) any and all of the rights and defenses described in subdivision (a) of Section 2856 of the California Civil Code, as may be amended from time to time, including, without limitation, any and all rights and defenses that are or may become available to Surety by reason of Sections 2787 to 2855 thereof, inclusive; (vi) any right of Surety or Principal to require Obligee to first proceed against Principal, any other guarantor or surety, or any other collateral Obligee may hold; (vii) the validity or enforceability of Principal’s obligations to Obligee; (viii) any amendments or other modification made from time to time to the Tariff; (ix) any defenses, setoffs, or counterclaims that Principal may allege or assert with respect to the Maximum Bond Amount (or any portion thereof); (x) the benefit of any statute of limitations affecting Surety’s liability under this Bond or the enforcement of this Bond; and (xi) any other act or omission, or delay to do any other act that might to any extent vary the risk of Surety as an obligor under this Bond, including, without limitation, Principal’s failure to provide a copy of a Cure Notice to Surety pursuant to Section 11(b) hereof. (c) Surety shall pay all amounts demanded by Obligee in accordance with this Bond without setoff, abatement, reduction or counterclaim of any kind whatsoever.

9. Disputes; Enforcement Action. If Surety and/or Principal in any way dispute the terms of this Bond or the payment of any or all of the Maximum Bond Amount, then, notwithstanding such dispute, Surety shall pay the Maximum Bond Amount without setoff, abatement, reduction or counterclaim of any kind whatsoever, other than a reduction for any amounts already validly paid by Surety to Obligee pursuant to Demand Notices previously honored by Surety. Surety shall pay all reasonable

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Attachment: Staff Report - 03-21-23 - Surety Bond FSR - Surety Bond Form attachment (Adopt Resolution No. 3967, Authorizing the Execution costs, damages, and expenses incurred by Obligee arising out of or otherwise associated with the enforcement of this Bond, including, without limitation, reasonable attorney fees and expenses.

Surety’s obligation to pay such costs, damages, fees, and expenses shall be in addition to its obligation to pay the Maximum Bond Amount, and shall in no way be interpreted or deemed to be limited by the Maximum Bond Amount.

10. Representations, Warranties and Covenants.
(a) On the Effective Date, Principal and Surety each represents and warrants that (i) it is duly organized, validly existing and in good standing under the laws of the jurisdiction of its formation, (ii) the execution and delivery of, and performance under this Bond are within its powers, have been duly authorized by all necessary action and do not violate any of the terms and conditions in its governing documents, any contracts to which it is a party, or any law, rule, regulation, order or the like applicable to it, (iii) this Bond constitutes a legally valid and binding obligation enforceable against it in accordance with its terms, and (iv) there is not pending, or to its knowledge, threatened against it any legal proceeding that could materially adversely affect its ability to perform under this Bond.
(b) Surety represents and warrants that, on the Effective Date, (i) it is listed on the United States Department of Treasury’s most recent and effective listing of approved sureties (Circular 570 or its successor), (ii) it is an admitted surety insurer authorized to transact the business of surety in the State of California, (iii) it has a credit rating of A- or better by Standard and Poor’s or A3 or better by Moody’s, and (iv) either (x) the Maximum Bond Amount is not greater than its underwriting limitation, as set forth in Circular 570 or its successor, or (y) to the extent that any portion of the Maximum Bond Amount is in excess of such underwriting limitation, such excess amount is protected with reinsurance as specified in 31 CFR 223.10-11 or its successor. (c) Surety covenants that during the Original Term and each Renewed Term, (i) it shall be listed on the United States Department of Treasury’s most recent and effective listing of approved sureties (Circular 570 or its successor), (ii) it shall be an admitted surety insurer authorized to transact the business of surety in the State of California, (iii) it has a credit rating of A- or better by Standard and Poor’s or A3 or better by Moody’s, and (iv) either (x) the Maximum Bond Amount shall not be greater than its underwriting limitation, as set forth in the most recent Circular 570 or its successor, or (y) to the extent that any portion of the Maximum Bond Amount is in excess of such underwriting limitation, such excess amount is protected with reinsurance as specified in 31 CFR223.10-11 or its successor.

11. Miscellaneous.
(a) Subject to Sections 5 and 9 hereof, the total amount of Surety’s obligations under this Bond for payment to the Obligee shall not exceed the Maximum Bond Amount. (b) If the Obligee issues a notice to Principal requesting the cure of a default under the Tariff (“Cure Notice”) at any time during the Original Term or any Renewed Term, Principal shall ensure that a copy of such Cure Notice is delivered to Surety pursuant to the procedure set forth in Section 7 hereof.
(c) This Bond shall be governed by the laws of the State of California without regard to conflict of laws principles. Surety and Principal irrevocably submit to the jurisdiction of any California court or any United States court sitting in California over any action or proceeding arising out of or relating to this Bond and irrevocably agree that all claims in such action or proceeding may be heard and determined by such court. Surety and Principal agree that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner

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Attachment: Staff Report - 03-21-23 - Surety Bond FSR - Surety Bond Form attachment (Adopt Resolution No. 3967, Authorizing the Execution provided by law. Surety and Principal waive any objection to venue on the basis of forum non conveniens. Surety and Principal irrevocably consent to the service of process in any action or proceeding by the mailing of copies of such process to Surety and Principal, as applicable at their respective addresses set forth in, and otherwise in accordance with Section 7 hereof. Nothing in this Bond shall affect the right of Obligee to bring any action or proceeding against Surety and/or Principal or their respective property in the courts of any other jurisdictions.
(d) This Bond may be waived, altered, amended or supplemented only by a writing signed by Surety and Obligee.
(e) Neither this Bond nor any right or interest under this Bond may be assigned by Principal or Surety without the prior written consent of Obligee, which consent shall not be unreasonably withheld. Any direct or indirect change of control of Principal or Surety (whether voluntary or by operation of law) shall be deemed an assignment in violation of this Bond, and will require the prior written consent of Obligee.
(f) If any provision of this Bond is determined to be prohibited or unenforceable by reason of any applicable law of a jurisdiction, then such provision shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions thereof, and any such prohibition or unenforceability in such jurisdiction shall not invalidate or render unenforceable such provisions in any other jurisdiction. (g) The parties to this Bond are represented by legal counsel. The terms of this Bond and the language used herein shall be deemed to be the terms and language chosen by the parties hereto to express their mutual intent. This Bond shall be construed without regard to any presumption or rule requiring construction against the party causing such instrument or any portion thereof to be drafted, or in favor of the party receiving a particular benefit under this Bond. No rule of strict construction will be applied against any party.
(h) This Bond may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. [signature page follows]

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Attachment: Staff Report - 03-21-23 - Surety Bond FSR - Surety Bond Form attachment (Adopt Resolution No. 3967, Authorizing the Execution IN WITNESS THEREOF, each of Surety and Principal has caused this Bond to be executed on its behalf by its duly authorized officer as of the Effective Date. [CCA’S / JPA’S LEGAL NAME]
By: ___________________________________
Name: [Authorized representative’s name]
Title: [Authorized Representative’s title]
[SURETY’S LEGAL NAME]
By: ___________________________________
Name: [Authorized representative’s name]
Title: [Authorized Representative’s title]1

1 [If Surety’s agent is signing on behalf of Surety, a Power of Attorney form for agent is required.]

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Attachment: Staff Report - 03-21-23 - Surety Bond FSR - Surety Bond Form attachment (Adopt Resolution No. 3967, Authorizing the Execution EXHIBIT A TO SURETY BOND NO. [_____]

FORM OF DEMAND NOTICE
Southern California Edison Company
Attn: Manager of Risk Operations and Collateral Management 2244 Walnut Grove Avenue, GO1, Q2B
Rosemead, CA 91770
[Date]
[Surety’s name
Surety’s address]
Re: Demand Notice under Surety Bond, No. [____], dated and effective as of [Effective Date of Bond] (“Bond”), entered into by [Surety’s legal name] (“Surety”) and [CCA’s / JPA’s full legal name] (“Principal”) and issued by Surety on behalf of Principal in favor of Southern California Edison Company (“Obligee”)
Ladies and Gentlemen:

This letter constitutes Obligee’s Demand Notice to Surety in accordance with the Bond. All capitalized terms used and not otherwise defined in this Demand Notice have the meanings assigned to them in the Bond.
[Insert one or both of the following two paragraphs, as applicable:

The undersigned hereby certifies to Surety that ($[dollar amount]) is due and owing from Principal to Obligee under the terms of SCE’s Rule 23 Tariff. Obligee hereby demands payment from Surety in the amount of $[dollar amount].
- or -
The undersigned hereby certifies to Surety that, as of the close of business on [date less than twenty (20) Business Days before the expiration of the Bond], Principal has not provided Obligee alternative financial security that complies with Tariff Rule 23. Obligee hereby demands payment from Surety in the amount of $[dollar amount].

Please pay this amount in accordance with the following payment instructions no later than fifteen (15) Business Days after your receipt of this Demand Notice, with such receipt determined in accordance with Section 7 (Notice) of the Bond: [SCE’s wire transfer instructions] Sincerely,
Southern California Edison Company
By: ___________________________________
Name: [Authorized representative’s name]
Title: [Authorized representative’s title]

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Attachment: Staff Report - 03-21-23 - Surety Bond FSR - Surety Bond Form attachment (Adopt Resolution No. 3967, Authorizing the Execution

January 2016

CHUBB SURETY
436 Walnut Street, 10th Floor
Philadelphia, Pennsylvania 19107
General Agreement of Indemnity
This General Agreement of Indemnity (this "Agreement") is made and entered into by the undersigned (individually and collectively, the “INDEMNITORS”) for the benefit of Federal Insurance Company and Westchester Fire Insurance Company, their respective direct and indirect subsidiaries, parent companies, and affiliates, whether in existence now or formed or acquired hereafter, co-sureties, fronting companies, companies which any of them may procure to issue or deliver any Bonds for, on behalf of or at the request of any of the Indemnitors, and reinsurers, and the successors and assigns of each of them (individually and collectively, the “SURETY”), for the purpose of indemnifying the SURETY from any and all loss, cost and expense in connection with any and all surety bonds, undertakings, guarantees and/or contractual obligations previously or hereafter executed, issued, procured, delivered or undertaken by the Surety, whether directly or as a result of any asset purchase, merger, acquisition or similar transaction, including any renewals, modifications and/or extensions thereof, for, on behalf of or at the request of: any of the Indemnitors, whether individually or jointly with others; any current or hereafter created or acquired subsidiary, affiliate, joint venture and/or other legal entity in which any of the INDEMNITORS has a substantial, material or beneficial interest; and/or any other party at the request of any of the INDEMNITORS (each a "Bond" and collectively "Bonds").

NOW THEREFORE, in consideration of the SURETY executing the Bonds, the INDEMNITORS agree that:

1. PREMIUMS & COLLATERAL FOR SURETYSHIP-The INDEMNITORS shall pay or cause to be paid to the SURETY both the agreed premium and, upon written request by the SURETY at any time, collateral security for its suretyship until the INDEMNITORS shall furnish to the SURETY competent written evidence, satisfactory to the SURETY, of the termination of any past, present and future liability under any Bond. The INDEMNITORS expressly waive any right to interest which may be earned on the collateral security and further consents that the collateral security provided in consideration of suretyship may be held by the SURETY in any investment or depository that the SURETY in its sole discretion deems advisable and prudent. The Surety’s election not to demand collateral now or at any time shall not operate as a waiver of the right to demand and receive such collateral at any time before liability has terminated under any Bond.

2. INDEMNITY & COLLATERAL FOR CLAIM- The INDEMNITORS shall indemnify and save harmless the SURETY from and against any and all liability, claim, demand, loss, damages, expense, cost, attorney’s fees and expenses, including without limitation, fees and disbursements of counsel incurred by the SURETY in any action or proceeding between the INDEMNITORS and the SURETY, or between the SURETY and any third party, which SURETY shall at any time incur by reason of its execution of any Bond or its payment of or its liability to pay any claim, irrespective of whether the claim is made against the SURETY as a joint or several obligor and whether the INDEMNITORS are then liable to make such payment, and to place the SURETY in funds to meet all of its liability under any Bond, promptly upon request and before the SURETY may be required to make any payment thereunder; and copy of the claim, demand, voucher or other evidence of the payment by the SURETY of any liability, claim, demand, loss, damage, expense, cost and attorney’s fees, shall be prima facie evidence of the fact and amount of INDEMNITORS’ liability to the SURETY under this Agreement. Any demand upon the SURETY by the Obligee shall be sufficient to conclude that a liability exists and the INDEMNITORS shall then place the SURETY with sufficient funds in a form and amount deemed acceptable in the SURETY’S sole discretion, as collateral security to cover the liability.

3. OTHER INDEMNITY -- The INDEMNITORS shall continue to remain bound under the terms of this Agreement even though the SURETY may have heretofore or hereafter, with or without notice to or knowledge of the INDEMNITORS, accepted or released other agreements of indemnity or collateral in connection with the execution or procurement of said Bonds, from the INDEMNITORS or others. The rights, powers and remedies given the SURETY under this Agreement shall be and are in addition to and not in lieu of, any and all other rights, powers and remedies which the SURETY may have

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January 2016
or acquire against the INDEMNITORS or others, whether by the terms of any agreement or by operation of law or otherwise.

4. INVALIDITY- In case any of the INDEMNITORS fail to execute this Agreement, or in case the execution hereof by any of the INDEMNITORS be defective or invalid for any reason, such failure, defect or invalidity shall not in any manner affect the validity of this Agreement or the liability hereunder of any of the INDEMNITORS executing the same, but each and every INDEMNITOR so executing shall be and remain full bound and liable hereunder to the same extent as if such failure, defect or invalidity had not existed.

5. SURETIES - All of the terms, provisions and conditions of this Agreement shall be extended to and for the benefit not only of the SURETY, either as a direct writing company or as a co-surety or reinsurer, but also for the benefit of any surety or insurance company or companies with which the SURETY may participate as a co-surety or reinsurer and also for the benefit of any other company which may execute any bond or bonds at the request of the SURETY on behalf of any of the Principals.

6. DECLINE EXECUTION - Unless otherwise specifically agreed in writing, the SURETY may decline to execute any bond and the INDEMNITORS shall make no claim to the contrary.

7. CHANGES, WAIVER OF NOTICE - The INDEMNITORS hereby waive notice of changes to the Bonds or the obligations covered by the Bonds , and agrees that any such changes will not affect INDEMNITORS’ obligations under the terms of this Agreement. Such changes may include but are not limited to continuations, extensions or renewals of the Bonds, the execution of any substitute or substitutes therefore, with the same or different conditions, provisions and obligees with the same or larger or smaller penalties; it being expressly understood and agreed that the INDEMNITOR shall remain bound under the terms of this Agreement even though any such change does or might substantially increase the liability of the INDEMNITORS. The INDEMNITORS waive notice of the execution of Bonds, acceptance of this Agreement, default or other acts giving rise to a bond claim or liability of the SURETY under Bonds.

8. TERMINATION - This Agreement may be terminated by any of the INDEMNITORS upon twenty days’ written notice sent by registered mail to the SURETY at its home office at Chubb Surety, WA10G, 436 Walnut Street, Philadelphia, Pennsylvania 19106-3703, but any such notice of termination shall not operate to modify, bar or discharge the INDEMNITOR as to the Bonds that may have been executed before the date on which such termination notice becomes effective.

9. SEVERABILITY - If any provision or provisions of this Agreement be declared void or unenforceable under any law governing its construction or enforcement, this Agreement shall not be void or vitiated thereby, but shall be construed and enforced with the same effect as though such provision or provisions were omitted.

10. SPECIFIC PERFORMANCE – The INDEMNITORS hereby represent and acknowledge that if any INDEMNITOR breaches its obligations set forth in paragraphs 1 or 2 of this Agreement, the SURETY will have no adequate remedy at law, will suffer irreparable harm, and shall be entitled to injunctive relief enforcing the terms of such paragraph, as well as a final decree, order or judgment granting SURETY specific performance of the terms of such paragraph.

11. CHOICE OF LAW/FORUM - It is mutually agreed that this Agreement is deemed made in the State of New York, regardless of the order in which the signatures of the parties shall have been affixed and shall be interpreted, and the rights and liabilities of the parties determined in accordance with the laws of the State of New York. INDEMNITORS agree that all actions or proceedings arising directly or indirectly from this Agreement shall be litigated only in courts having status within the State of New York, and consents to the personal jurisdiction and venue of any local, state or Federal Court located therein.

12. JOINT/SEVERAL - Each undersigned INDEMNITOR, its successors and assigns, is jointly and severally bound by the foregoing conditions of this Agreement.

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13. PAY ON DEMAND BONDS – INDEMNITORS may request that SURETY, from time to time, execute Bonds which may require the SURETY to make payment to the Obligees of such Bonds upon such Obligees’ demand (“Pay on Demand Bonds”). INDEMNITORS undertake and warrant that they will deposit cash with the SURETY in such amount and form as demanded by the SURETY within 5 business days following receipt of a written demand from the SURETY stating that it has received a claim on one or more such Pay On Demand Bonds.

14. FACSIMILE – This Agreement bearing the signature of the INDEMNITORS shall be valid, effective and enforceable whether received by the Surety as an original, digital or scanned image, or as a facsimile transmission.

IN WITNESS WHEREOF, INDEMNITOR has signed this Agreement this _______ day of , 20____. (Full Name & Address of Indemnitor)
Address:

Tax ID:

Attest: By:

CORPORATE ACKNOWLEDGMENT
State of _______________________
County of _________________________ ss:

On this _________________________ day of ___________________________________, 20 ______________,before me personally came to me known, who being by me duly sworn, deposed and says that he/she is the _____________________of ________________________, the corporation described in and which executed the foregoing Agreement; that he/she knows the seal of the said corporation; that the seal affixed to the said Agreement is such corporate seal; that it was so affixed by the order of the Board of Directors of said corporation, and that he/she signed his/ her name thereto by like order.
___________________________________________
(Signature of Notary Public)
My commission expires _______________________

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Attachment: Staff Report - 03-21-23 - Surety Bond FSR - Chubb Surety GAI (Adopt Resolution No. 3967, Authorizing the Execution of a Surety March 21, 2023
TO: City Council
REQUESTED BY: Stuart McKibbin, City Engineer
APPROVED BY: Robert A. Johnson, City Manager
SUBJECT: Amendment No. 1 to Reimbursement Agreement for Street Improvements for Tract 31294
RECOMMENDATION:

Staff recommends that the City Council approve Amendment No.1 to the Reimbursement Agreement with D.R. Horton for Street Improvements Adjacent to Tract 31294, and authorize the City Manager to execute Amendment No. 1.

DISCUSSION:

On July 21, 2002 City Council approved the Reimbursement Agreement for Street Improvement adjacent to Tract 31294 (“Reimbursement Agreement”) with DR Horton.

The Reimbursement Agreement was part of an effort by the City to recruit residential development companies to collaborate with the City to complete unfinished housing tracts.

Pursuant to the Council’s Economic Incentive Program, the Reimbursement Agreement outlined the work to be performed by DR Horton, within Tract 31294, to finish off the public improvements of Wildrose Circle with the understanding that the City would reimburse the Developer up to $100,000.

The developer has constructed the improvements described in the Reimbursement Agreement and has not crossed the $100,000 reimbursement limit. Consequently, the City and Developer now desire to repair the intersection of 7th Street and Ivy Crest Drive to provide a safe and drivable pavement condition for the residents of Tract 31294 and the project area. This Amendment No.1 incorporates these additional improvements into the Reimbursement Agreement.

Engineering recommends approval of Amendment No.1 to the Reimbursement Agreement as developed by the Engineering and agreed to by DR Horton, and authorize the City Manager to execute Amendment No. 1.

FISCAL IMPACT:

There is no change from the original Reimbursement Agreement. Up to $100,000 will be expended from 199-9999-425-4001, CIP #18-007 (Economic Development Incentives).

ATTACHMENTS:

Amendment No 1 to Reimbursement Agreement w DR Horton
Tract 31294 Exhibit B-1
Tract 31294 Straff Report from July 19, 2022
TR. 31294 AMENDMENT NO. 1 TO AGREEMMENT OF PUBLIC IMPROVEMENTS

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01006.0006/640186.8
AMENDMENT No. 1
to Reimbursement Agreement for Street Improvements
for Tract 31294 Between the City of San Jacinto and DR
Horton Inc.

THIS AMENDMENT No. 1 (“Amendment”) to Reimbursement Agreement for Street Improvements for Tract 31294 is made and entered into as of this 21st day of March 2023, by and between DR Horton, Inc. (“Developer”) and the City of San Jacinto, a municipal corporation (“City”).

RECITALS
WHEREAS, on June 21, 2022, City and Developer entered into a Reimbursement Agreement for Street Improvements for Tr 31294 (“Agreement”); and WHEREAS, the actual cost of street improvements identified in the Agreement is less than the not to exceed limit of $100,000; and
WHEREAS, the City and Developer desire to repair to the intersection of 7th Street and Ivy Crest Drive (“Intersection Repair”) to provide adequate pavement conditions to the residents of Tract 31294 and the project area; and
WHEREAS, the Developer is constructing neighboring streets as part of the Ashford Pointe project, and Developer’s performance of Intersection Repair will be the most economical and efficient approach to performing such work; and
WHEREAS, theCity and Developer desire to use the remaining reimbursable amount to fund repair to the intersection of 7th Street and Ivy Crest Drive; and WHEREAS, the City and Developer desire to use the remaining reimbursable amount to fund repair to the intersection of 7th Street and Ivy Crest Drive to provide safer access to the residents of tract 31294;and

AGREEMENT
NOW, THEREFORE, in consideration of the mutual covenants hereinafter contained, City and Developer agree to the following:

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

Section 2. Section 2 of Agreement is amended to read “Developer agrees to perform all of the work identified in Exhibits B and B-1 (“the Repair Work”), attached hereto and incorporated by reference.”
Section 3. Exhibit B-1 attached hereto is incorporated herein by reference.

Section 4. Full Force and Effect. City and Developer agree, except as specifically provided in this Amendment, the terms of the Agreement shall remain unchanged and in full force and effect.

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Attachment: Amendment No 1 to Reimbursement Agreement w DR Horton (Amendment No. 1 to Reimbursement Agreement for Street 01006.0006/640186.8
IN WITNESS HEREOF, the parties hereto have caused this Amendment to be duly executed this day and year first written above.

I.

CITY
City of San Jacinto
___________________________________
Robert A. Johnson,
City Manager

DEVELOPER
D.R. Horton Los Angeles Holding
Company, Inc., a California Corporation
___________________________________________
Barbara M. Scull,
Vice President and President of Division
ATTEST:
____________________________________
Julia Espinoza, City Clerk
APPROVED AS TO FORM:
____________________________________
Michael J. Maurer, City Attorney

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Attachment: Amendment No 1 to Reimbursement Agreement w DR Horton (Amendment No. 1 to Reimbursement Agreement for Street Exhibit B-1
City of San Jacinto
Tract 31294
Scope of Work
Ashford Pointe: Street Repairs to Intersection of 7th Street and Ivy Crest Drive

QUANTITIES

ITEM DESCRIPTION QUANTITY UNIT
1 2” AC Grind & CAP with Tack Coat 3590 SF
2 0.23’ AC/1.00’ CL2 Base 1400 SF
3 Traffic Control 1 LS

Cost Estimate: $17,960

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Attachment: Tract 31294 Exhibit B-1 (Amendment No. 1 to Reimbursement Agreement for Street Improvements for Tract 31294) July 19, 2022
TO: City Council
REQUESTED BY: Stuart McKibbin, City Engineer
APPROVED BY: Robert A. Johnson, City Manager
SUBJECT: Subdivision Agreement Amendment No. 1 Tract 31294 - DR Horton RECOMMENDATION:

Staff recommends that the City Council approve Amendment No. 1 to the Subdivision Improvement Agreement for DR Horton Los Angeles Holding Company, located at Ivy Crest and Seventh Street, West of Lyon Avenue.

DISCUSSION:

On September 15, 2006, the Subdivision Improvement Agreement for Tract 31294 listed the conditions that were mutually agreed upon between the City and Park Meadows II, LLC. As a result of the economic downturn, Park Meadows II, LLC did not complete the agreed upon improvements.

DR Horton Los Angeles Holding Company (DR Horton) is proposing to complete the balance of public improvements to Tract 31294. As such, DR Horton will assume the responsibility in executing an agreement and posting new securities in the form of bonds.

In preparation for City Council consideration, the City Engineers office reviewed the cost estimate and exhibits, and the City Attorney’s office completed its review of the attached agreements.

Staff recommends that the City Council approve Amendment No. 1 to the Subdivision Improvement Agreement for DR Horton Los Angeles Holding Company, located at Ivy Crest and Seventh Street, West of Lyon Avenue.

FISCAL IMPACT:

All costs associated with completion of improvements are the responsibility of the developer.

ATTACHMENTS:
31294 Subdivision Agreement Amendment No. 1
31294 Bonds
31294 Eng Est

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Attachment: Tract 31294 Straff Report from July 19, 2022 (Amendment No. 1 to Reimbursement Agreement for Street Improvements for Tract

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Attachment: TR. 31294 AMENDMENT NO. 1 TO AGREEMMENT OF PUBLIC IMPROVEMENTS (Amendment No. 1 to Reimbursement Agreement March 21, 2023
TO: City Council
REQUESTED BY: Stuart McKibbin, City Engineer
APPROVED BY: Robert A. Johnson, City Manager
SUBJECT: Change Order for Mountain Ave Rehabilitation, Ramona Expressway Improvements, and Vernon Avenue Str
RECOMMENDATION:

Staff recommends that the City Council authorize the City Manager to execute a Change Order with RJ Noble, Inc to add the Cottonwood Avenue Emergency Pavement Rehabilitation and authorize $453,300 for the change order plus 10% for contingency, material testing and inspection.

DISCUSSION:

On September 20, 2022, the City Council awarded the construction contract for the Mountain Ave Rehabilitation, Ramona Expressway Improvements, and Vernon Avenue Street improvement project (Mountain Ave project) to RJ Noble for $1,713,761.

For the past few years, roadway potholes along Cottonwood Avenue from Warren Road to a point about 1,260 feet west of Center Grove Way have been an ongoing issue. As long-term pavement maintenance has been deferred, the City’s Utilities Department has had to continuously maintain and fill the potholes to keep the roadway safe and drivable. Most urgently, after this winter’s rains the potholes have become more severe, more frequent, and vast sections of the roadway are covered with alligator cracking. The cracking lets even more water into the base and sub-base weakening the road’s overall structural integrity and increasing the likelihood of complete failure.

Therefore, in order to reduce long-term maintenance costs and maintain safety on the roadway, Engineering recommends the pulverization of the entire road surface within the 2,700-foot long segment, application of a cement treatment, and paving the surface with 5-inches of asphalt.

As RJ Noble is already under contract with the City, Engineering requested a proposal from them to perform the work per the attached plan. RJ Noble provided a quote for $453,300. As this is above the approved construction contingency for the Mountain Ave project, Engineering recommends the City Council authorize the City Manager to approve the change order to add the Cottonwood Avenue Emergency Pavement Rehabilitation and authorize a total of $498,630 from SB1 RMRA be added to the Mountain Ave project.

FISCAL IMPACT:

There are adequate funds available from SB1 RMRA to cover the additional change order amount including contingencies, material testing and inspection. There is no impact to the

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General Fund.

ATTACHMENTS:

SJ Cottonwood Exhibit
RJ Noble - Subcontractor Quotation

3.A.7
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0 150 300
SCALE: 1"=150'

EXHIBIT
SCALE: SHEET: OF 1
CITY, STATE:

PROJECT ID / WORK ORDER:
1"=150' DRAWN BY: 1
CROSS STREETS:

INTERWEST
2002 2023 A SAFEbuilt COMPANY Ò

COTTONWOOD AVENUE
SJ-439

CITY OF SAN JACINTO, CALIFORNIA
SJ COTTONWOOD_
exhibit.dwg

PROJECT

LOCATION

3.A.7.a
Packet Pg. 107 Attachment: SJ Cottonwood Exhibit (Change Order for Mountain Ave Rehabilitation, Ramona Expressway To: City of San Jacinto Contact:

Project Name: Mountain Ave, Remona Expressway, Vernon Ave Bid Number:

San Jacinto, CA 92583 Fax: (951) 654-3672
Address: 595 S. San Jacinto Phone: (951) 654-3592
Project Location: Bid Date: 9/8/2022
Line # Item # Item Description Estimated Quantity Unit Unit Price Total Price 05001 Mobilization/Traffic Control/Supervision 1.00 LS $43,000.00 $43,000.00 05002 Pulverize & Cement Treat 70,000.00 SF $1.45 $101,500.00 05003 Subgrade Prep 70,000.00 SF $1.33 $93,100.00
05004 Asphalt Paving 2,000.00 TON $101.70 $203,400.00
05005 Stripiing 1.00 LS $7,800.00 $7,800.00
05006 Utility Adjustments (1 WV, 1 SMH) 2.00 EACH $550.00 $1,100.00 05007 Loops 1.00 EACH $3,400.00 $3,400.00
Total Bid Price: $453,300.00
Notes:
• ITEMS BILLED WILL BE BASED ON UNIT PRICES. FIELD MEASURMENTS WILL APPLY. • NOT INCLUDED: SURVEY,ENGINEERING, TESTING, PERMITS, BONDS, CRACKFILL, WEED KILL, PRIME COAT, SEAL COAT, LEVELING COURSE, STORM WATER POLLUTION PREVENTION, TRAFFIC CONTROL PLANS. • PRICES INCLUDES ONE MOVE IN. ADDITIONAL MOVE IN WILL BE CHARGED AT $7,500.00 EACH. • PRICES ARE GOOD THROUGH 04/30/2023.
• COR3: COTTONWOOD REHAB USING ALT.1 DESIGN
• REVISION: STRIPING & UTILITY ADJUSTMENTS REMOVED FROM EXCLUSIONS, ADDDED PRICE FOR UTILITY ADJUSTMENTS &

LOOP REPLACEMENT
Payment Terms:

Terms: Net cash. Payment on completed job or progress billings for work performed are due on the 10th of the month following. Billing will be on a unit price basis unless otherwise indicated.

ACCEPTED:

The above prices, specifications and conditions are satisfactory and are hereby accepted.

Buyer:

Signature:

Date of Acceptance:

CONFIRMED:

R.J. NOBLE COMPANY
Authorized Signature:

Estimator: Brandon Spiers
[email protected]
3/8/2023 10:37:16 AM Page 1 of 1

3.A.7.b
Packet Pg. 108 Attachment: RJ Noble - Subcontractor Quotation (Change Order for Mountain Ave Rehabilitation, Ramona Expressway Improvements, and March 21, 2023
TO: City Council
REQUESTED BY: Travis Randel, Deputy City Manager, Development Services APPROVED BY: Robert A. Johnson, City Manager
SUBJECT: Extension of the Service Authority Fee Collection - RCAVASA RECOMMENDATION:

Staff recommends that the City Council adopt Resolution No. 3966, a Resolution extending the established Service Authority Fee collection on behalf of the Abandoned Vehicle Abatement Program through May 31, 2034.

DISCUSSION:

In 1990, the California State Legislature enacted legislation allowing for the creation of county based vehicle service authorities, pursuant of the provisions of California Vehicle Code Section 22710. In June 1994, the Riverside County Abandoned Vehicle Abatement Service Authority was formed and imposed a one dollar annual vehicle registration fee on vehicles registered to an owner with an address in the County of Riverside. Vehicle registration fees are collected by the California Department of Motor Vehicles and distributed to the corresponding service authority by the State Controller's Office. Fees are then allocated quarterly to participating local jurisdictions.

The current 25 entities which comprise the Service Authority are: the County of Riverside and the Cities of Banning, Beaumont, Blythe, Calimesa, Canyon Lake, Cathedral City, Coachella, Corona, Desert Hot Springs, Eastvale, Hemet, Indio, Jurupa Valley, La Quinta, Lake Elsinore, Menifee, Moreno Valley, Murrieta, Norco, Palm Desert, Perris, Riverside, San Jacinto, and Temecula. The service fees received by the Riverside County Abandoned Vehicle Abatement Service Authority are used to reimburse local governmental agencies for a portion of the costs incurred as a result of the abatement, removal, and disposal as public nuisances of any abandoned, wrecked, dismantled, or inoperative vehicles or parts thereof. The City of San Jacinto has been involved with this program since 2006.

The current program is scheduled to sunset on May 31, 2024. New legislation has amended California Vehicle Code Section 9250.7, and allows the local authorities to extend the program every 10 years with the approval of the county and a majority of the cities comprising a majority of the population of the incorporated areas. The last extension was in May of 2014.

The members of the Abandoned Vehicle Abatement Service Authority are planning to submit an application for another extension, and have requested each City to adopt their respective resolutions prior to the next Abandoned Vehicle Authority meeting to be held May 2023.

FISCAL IMPACT:

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Any collection of fees as a result of participation in this program, would have a positive impact on the General Fund, about $7,300 annually. In the event the City Council does not adopt the resolution, the City will be removed from the Abandoned Vehicle Abatement Service Authority and no longer receive the funds.

ATTACHMENTS:

Resolution No. 3966

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Packet Pg. 110
Resolution No. 3966

STATE OF CALIFORNIA ) RESOLUTION NO. 3966
COUNTY OF RIVERSIDE)ss

CITY OF SAN JACINTO )

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JACINTO,

CALIFORNIA, AUTHORIZING THE EXTENSION OF THE SERVICE FEE

COLLECTED ON BEHALF OF THE RIVERSIDE COUNTY

ABANDONDED VEHICLE ABATEMENT SERVICE AUTHORITY UNTIL
MAY 2034
WHEREAS, the Riversdie County Abandoned Vehicle Abatement Service Authority was formed on or about June 1, 1994, pursuant to the provisions of the California Vehicle Code § 9250.7 and 22710 enacted by the Legislature in 1990 which authorized the establishment of a service authority and imposition of a service fee on all registered motor vehicles located within a county; and
WHEREAS, beginning in June 1994 and continuing to the present, the Riverside County Abandoned Vehicle Abatement Service Authority has been the recipient of service fees collected on its behalf by the California Department of Motor Vehicles; and WHEREAS, the service fees received by the Riverside County Abandoned Vehicle Abatement Service Authority are used to reimburse local governmental agencies for a portion of their costs incurred as a result of the abatement, removal and disposal as public nuisances of any abandoned, wrecked, dismatled, or inoperative vehicles or parts therof; and
WHEREAS, the Riverside County Abandoned Vehicle Abatement Service Authroity apportions and distributes service fee proceeds to each member agency according to the formula set forth in tCalifornia Vehicle Code § 22710; and WHEREAS, the service fee collected as part of the Abandoned Vehicle Abatement program is set to expire in May of 2024; and
WHEREAS, the Legislature recently amended California Vehicle Code § 9250.7 to allow for an extension of the service fee collected as part of the Abandoned Vehicle Abatement program increments of up to 10 years each if the board of supervisors of the county, by a two-thrids vote, and a majority of the citites comprising a majority of the population of the incorporated areas within the county adopt resolutions providing for the extension of the service fee; and
WHEREAS, it is desirable to the City of San Jacinto to have the Abandoned Vehicle Abatement Program continue beyond its current termination date of May 2024.

NOW THEREFORE, BE IT RESOLVED, determined, and ordered by the City Council of the City of San Jacinto, California as follows:

3.A.8.a
Packet Pg. 111 Attachment: Resolution No. 3966 (Extension of the Service Authority Fee Collection - RCAVASA) Resolution No. 3966

SECTION 1. The City Council hereby adopts the resolution extending the service fee collected on behalf of the Riverside County Abandoned Vehicle Abatement Service Authority until May 31, 2034, a copy of which is attached hereto.

SECTION 2. The adopted resolution shall be on file with the City Clerk and available to the public for inspection and copying.

SECTION 3. The City Clerk shall certify as to the adoption of this resolution. This resolution shall be effective immediately upon adoption.

PASSED, APPROVED and ADOPTED at a regular meeting of the City Council on the 21st day of March 2023 by the following vote:

AYES:

NAYS:

ABSENT:

ABSTAIN:

CITY OF SAN JACINTO:
_____________________________
Alonso Ledezma, Mayor
ATTEST:
_____________________________________
Julia Espinoza, City Clerk
APPROVED AS TO FORM:

BEST BEST & KRIEGER LLP
_____________________________________
Michael J. Maurer, City Attorney

3.A.8.a
Packet Pg. 112 Attachment: Resolution No. 3966 (Extension of the Service Authority Fee Collection - RCAVASA) Resolution No. 3966

STATE OF CALIFORNIA)
COUNTY OF RIVERSIDE) ss

CITY OF SAN JACINTO)

CERTIFICATION
I, Julia Espinoza, duly appointed City Clerk of the City of San Jacinto, do hereby certify that the foregoing Resolution No. 3966 was duly passed, approved and adopted at a regular meeting of the City Council of the City of San Jacinto on the 21st day of March 2023, by the following vote:

AYES:

NAYS:

ABSENT:

ABSTAIN:

WITNESS MY HAND AND OFFICIAL SEAL this 21st day of March, 2023. _________________________
Julia Espinoza, City Clerk
City of San Jacinto

3.A.8.a
Packet Pg. 113 Attachment: Resolution No. 3966 (Extension of the Service Authority Fee Collection - RCAVASA) March 21, 2023
TO: City Council
REQUESTED BY: Arthur Mullen, Chief of Public Utilities
APPROVED BY: Robert A. Johnson, City Manager
SUBJECT: Supplemental Appropriation for the Purchase of Compact Truck Loader RECOMMENDATION:

Staff recommends that the City Council approve the purchase of a new Caterpillar Model 289D3 Compact Track Loader and trailer for the Public Utilities Department, and appropriate the amount of $120,680 to Public Utilities’ Fiscal Year 22-23 budget.

DISCUSSION:

In 2020, San Jacinto voters approved local ballot Measure V – a 1% increase in local sales tax.

A survey of registered voters identified repairing streets, roads, and potholes as the second highest priority for the additional revenue raised by Measure V.

Maintaining San Jacinto’s streets and roadways is one of the most critical functions of the Public Utilities Department. The City routinely experiences high volumes of potholes and pavement degradation that can lead to safety issues and vehicular damage. Approximately 60% of the service calls to Public Utilities from the public are related to pothole and pavement issues.

The City has moved aggressively to improve the quality of streets and roadways. In the Fiscal Year 2022-2023 budget, Council approved the purchase of a hot patch asphalt repair truck, two additional staff for the Streets division, and other accessory tools and equipment. Using the hot patch truck, City staff has repaired over 25,000 square feet of roadway to date. While far superior to cold patch repairs, hot patch repairs are still temporary measures that do not address underlying damage in roadways. An asphalt planer is an attachment for use on a track loader that would allow staff to rapidly remove damaged asphalt up to six inches in depth, clearing entire sections of asphalt down to the base layer, enabling permanent repair of entire sections of roadways.

The use of a planer attachment requires a compatible track loader for operation. Public Utilities staff did not request an appropriation in the 2022-2023 budget due to the lack of available units at the time and vendor uncertainty regarding availability even beyond the 2024 budget year.

Public Utilities was recently notified that a unit is currently available and recommends capitalizing on the opportunity to purchase this unit, as additional units are likely unavailable for the next 12-18 months.

Staff received a quote from CAT Quinn for a new Caterpillar model 289D3 Compact Track Loader in the amount of $100,680, including tax. The loader will also need a trailer for transport, which is estimated at $20,000. Staff recommends that the City Council approve the

3.A.9
Packet Pg. 114
purchase of the track loader and appropriate $120,680 to Public Utilities for the purchase of the track loader and trailer.

FISCAL IMPACT:

Funding for this equipment purchase will come from the Public Utilities portion of the General Fund in the amount of $120,680, from account 010-4150-410-4045 (Streets – Capital Machinery & Equipment). Staff recommends that Council appropriate the amount of $120,680 to account 010-4150-410-4045 for Fiscal Year 2022-2023.

ATTACHMENTS:

Quote for Caterpillar 289D3
Caterpillar 289D3 Specifications

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Packet Pg. 115
Quote 165171-01

165171-01
Hello
We would like to thank you for your interest in our company and our products, and are pleased to quote the following for your consideration.

One (1) New Caterpillar Inc. Model: 289D3 Compact Track Loader including standard and optional equipment as listed below.

STOCK NUMBER: NS0020109 SERIAL NUMBER: 0JX914135 YEAR: SMU:

We wish to thank you for the opportunity of quoting on your equipment needs. This quotation is valid for 30 days, after which time we reserve the right to re-quote. If there are any questions, please do not hesitate to contact me.

Sincerely,
Joseph Munoz
Machine Sales Representative

3.A.9.a
Packet Pg. 116 Attachment: Quote for Caterpillar 289D3 (Supplemental Appropriation for the Purchase of Compact Truck Loader) Quote 165171-01

One (1) New Caterpillar Inc. Model: 289D3 Compact Track Loader including standard and optional equipment as listed below.

Standard Equipment

POWERTRAIN
Cat C3.3B diesel engine Filter, cartridge type, hydraulic -Gross horsepower per SAE J1349 Filters, canister type, fuel

74.3 hp (55.4 kW) @ 2400 RPM and water separator
-Electric fuel priming pump Radiator / hydraulic oil
-Glow plugs starting aid cooler (side-by-side)
-Liquid cooled, direct injection Spring applied, hydraulically released, Air cleaner, dual element, radial seal parking brakes
S-O-S sampling valve, hydraulic oil Hydrostatic transmission

UNDERCARRIAGE
Dual flange front idler, single flange Suspension - independent torsion axle(4) Rear idler Two speed motor

HYDRAULICS
ISO or H pattern controls: transmission control
Electro/hydraulic implement control Speed sensor guarding Electro/hydraulic hydrostatic

ELECTRICAL
12 volt electrical system -Two rear tail lights
80 ampere alternator -Dome light
Ignition key start / stop / aux switch Backup alarm
Lights: Electrical outlet, beacon
-Gauge backlighting

OPERATOR ENVIRONMENT
Operator warning system indicators: leaves seat or armrest raised:
-Air filter restriction -Hydraulic system disables
-Alternator output -Hydrostatic transmission disables
-Armrest raised / operator out of seat -Parking brake engages -Engine coolant temperature ROPS cab, open, tilt up
-Engine oil pressure Anti-theft security system w/6-button -Glow plug activation keypad
-Hydraulic filter restriction FOPS, Level I
-Hydraulic oil temperature Top and rear windows
-Park brake engages Floormat
-Engine emission system Interior rear view mirror
Gauges: fuel level and hour meter 12V electric socket
Storage compartment with netting Horn
Ergonomic contoured armrest Hand (dial) throttle, electronic Control interlock dystem, when operator

3.A.9.a
Packet Pg. 117 Attachment: Quote for Caterpillar 289D3 (Supplemental Appropriation for the Purchase of Compact Truck Loader) Quote 165171-01

FRAMES
Lift linkage, vertical path Belly pan cleanout
Chassis, one piece welded Support, lift arm
Machine tie down points (6) Rear bumper, welded

OTHER STANDARD EQUIPMENT
Engine enclosure - lockable Heavy duty flat faced quick disconnects Extended life antifreeze (-37C, -34F) with integrated pressure release Work tool coupler Split D-ring to route work tool hoses Hydraulic oil level sight gauge Along side of left lift arm Radiator coolant level sight gauge Hydraulic demand cooling fan Radiator expansion bottle Per SAE J818-2007 and EN 474-3:2006 and Cat ToughGuard TM hose ISO 14397-1:2007

MACHINE SPECIFICATIONS
289D3 COMPACT TRACK LOADER 512-4289
INSTRUCTIONS, ANSI, USA 512-3745
BATTERY,EXTRA HEAVY DUTY, DISC 568-5603
CAB PACKAGE, ULTRA 588-9134
SEAT BELT, 2'' 542-6994
DOOR, CAB, POLYCARBONATE 539-8061
REAR LIGHTS 356-6082
FILM, SELF LEVEL, ANSI 435-9238
RIDE CONTROL, NONE 556-5898
COUNTERWEIGHT,MACHINE,EXTERNAL 345-5148
HEATER, ENGINE COOLANT, 120V 345-3556
CERTIFICATION ARR, P65 563-1163
TRACK,RUBBER,450MM(17.7 IN)BAR 454-6059
PRODUCT LINK, CELLULAR PL641 573-8121
SERIALIZED TECHNICAL MEDIA KIT 421-8926
PACK, DOMESTIC TRUCK 0P-0210
LANE 2 ORDER 0P-9002

3.A.9.a
Packet Pg. 118 Attachment: Quote for Caterpillar 289D3 (Supplemental Appropriation for the Purchase of Compact Truck Loader) Quote 165171-01

WARRANTY & COVERAGE
Standard Warranty: 24 MONTHS / 2,000 HOURS FULL MACHINE

SELL PRICE $92,579.73
SALES TAX (8.75%) $8,100.73
AFTER TAX BALANCE $100,680.46

PAYMENT TERMS
Accepted by___________________________________ on ____________________ ______________________________
Signature

3.A.9.a
Packet Pg. 119 Attachment: Quote for Caterpillar 289D3 (Supplemental Appropriation for the Purchase of Compact Truck Loader) Features:

The Cat® 289D3 Compact Track Loader, with its vertical lift design, delivers extended reach and lift height for quick and easy truck loading.

Its standard, suspended undercarriage system provides superior traction, flotation, stability and speed to work in a wide range of applications and underfoot conditions. The 289D3 features the following:
n Industry leading sealed and pressurized cab option provides a cleaner and quieter operating environment with excellent work tool visibility. n Available high-back, heated, air ride seat with seat mounted adjustable joystick controls makes the D3 Series the industry leader in operator comfort.
n High performance power train provides maximum performance and production capability through the Electronic Torque Management system, standard two speed travel and an industry exclusive electronic hand/foot throttle with decel pedal capability.
n High Flow XPS hydraulic system is available for applications that demand maximum hydraulic work tool performance.
n Cat C3.3B engine and high performance power train provide high engine horsepower and torque, allowing partial-throttle operation for lower sound levels and fuel consumption.
n Cat “Intelligent Leveling” system provides industry leading technology, integration, and available features such as dual direction self level, work tool return to dig, and work tool positioner.
n Standard fully independent torsion axle suspension combined with the optional Speed Sensitive Ride Control system improves operation on rough terrain, enabling better load retention, increased productivity and greater operator comfort.
n Maximize machine capability and control with optional Advanced Display providing on-screen adjustments for implement response, hystat response and creep control. Also features multi-language functionality with customizable layouts, security system and rearview camera. n Ground level access to all daily service and routine maintenance points helps reduce machine downtime for greater productivity. n Broad range of performance matched Cat Work Tools make the Cat Compact Track Loader the most versatile machine on the job site.

Engine*
Engine Model Cat C3.3B DIT (turbo)
Gross Power SAE J1995 55.4 kW 74.3 hp
Net Power SAE 1349 53.6 kW 72.1 hp

54.0 kW† 72.7 hp†
Net Power ISO 9249 54.1 kW 72.8 hp

54.6 kW† 73.5 hp†
Peak Torque at 1,600 rpm SAE J1995 265 N·m 195 lbf-ft
Displacement 3.3 L 203 in3
Stroke 120 mm 4.7 in
Bore 94 mm 3.7 in
†Engine meeting Brazil MAR-1 and China Nonroad Stage III emission standards emits equivalent to U.S. EPA Tier 4 Interim and is offered only for Australia/New Zealand, Brazil, China, French Polynesia, Hong Kong, Macedonia and New Caledonia.
*Net power advertised is the power available at the flywheel when the engine is equipped with alternator, air cleaner, muffler/aftertreatment and cooling fan.

Weights*
Operating Weight 4848 kg 10,688 lb
*Operating Weight, Operating Specifications and Dimensions all based on 75 kg (165 lb) operator, all fluids, two speed, OROPS, 2036 mm (80 in) low profile bucket, 450 mm (17.7 in) tracks, dual flange front idler/single flange rear idler, standard flow hydraulics, mechanical suspension seat, no optional counterweights and manual quick coupler (unless otherwise noted).

Power Train
Travel Speed (Forward or Reverse):

One Speed 7.2 km/h 4.5 mph
Two Speed 13.3 km/h 8.3 mph
Hydraulic System
Hydraulic Flow – Standard:

Loader Hydraulic Pressure 23 000 kPa 3,335 psi
Loader Hydraulic Flow 86 L/min 23 gal/min
Hydraulic Power (calculated) 33 kW 44 hp
Hydraulic Flow – High Flow XPS:

Maximum Loader Hydraulic Pressure 28 000 kPa 4,061 psi
Maximum Loader Hydraulic Flow 121 L/min 32 gal/min
Hydraulic Power (calculated) 57 kW 76 hp
Specifications
Cat®
289D3
Compact Track Loader

3.A.9.b
Packet Pg. 120 Attachment: Caterpillar 289D3 Specifications (Supplemental Appropriation for the Purchase of Compact Truck Loader) 2 289D3 Compact Track Loader
Operating Specifications*
Rated Operating Capacity:
35% Tipping Load 1315 kg 2,890 lb
50% Tipping Load 1880 kg 4,130 lb
Rated Operating Capacity
with Optional Counterweight 1985 kg 4,370 lb
Tipping Load 3750 kg 8,255 lb
Breakout Force, Tilt Cylinder 3307 kg 7,291 lb
Ground Contact Area (450 mm/17.7 in track) 1.47 m2 2,272 in2 Ground Pressure (450 mm/17.7 in track) 32.2 kPa 4.7 psi Cab
ROPS ISO 3471:2008
FOPS ISO 3449:2005 Level I
Service Refill Capacities
Cooling System 14 L 3.7 gal
Engine Crankcase 11 L 3.0 gal
Fuel Tank 105 L 27.7 gal
Hydraulic System 52 L 13.7 gal
Hydraulic Tank 39 L 10.3 gal
Noise Level
Inside Cab** 83 dB(A)
Outside Cab*** 103 dB(A)
***The declared dynamic operator sound pressure levels per ISO 6396:2008.

The measurements were conducted with the cab doors and windows closed and at 70% of the maximum engine cooling fan speed. The sound level may vary at different engine cooling fan speeds.
***The labeled sound power level for the CE marked configurations when measured according to the test procedure and conditions specified in 2000/14/EC.

Air Conditioning System (if equipped)
The air conditioning system on this machine contains the fluorinated greenhouse gas refrigerant R134a (Global Warming Potential = 1430).

The system contains 1.0 kg of refrigerant which has a CO2 equivalent of 1.430 metric tonnes.

Dimensions*
1 Length of Track on Ground 1630 mm 64.2 in
2 Overall Length of Track 2129 mm 83.8 in
3 Length without Bucket 2995 mm 117.9 in
4 Length with Bucket on Ground 3714 mm 146.2 in
5 Height to Top of Cab 2113 mm 83.2 in
6 Maximum Overall Height 4015 mm 158.1 in
7 Bucket Pin Height at Maximum Lift 3178 mm 125.1 in
8 Bucket Pin Height at Carry Position 190 mm 7.5 in
9 Reach at Maximum Lift and Dump 761 mm 30.0 in
10 Clearance at Maximum Lift and Dump 2387 mm 94.0 in
11 Ground Clearance 226 mm 8.9 in
12 Departure Angle 33°
13 Maximum Dump Angle 51°
14 Vehicle Width (450 mm/17.7 in tracks) 1981 mm 78.0 in 15 Turning Radius from Center – Machine Rear 1796 mm 70.7 in 16 Turning Radius from Center – Coupler 1410 mm 55.5 in 17 Turning Radius from Center – Bucket 2256 mm 88.8 in
18 Maximum Reach with Arms Parallel to Ground 1270 mm 50.0 in 19 Rack Back Angle at Maximum Height 84°
20 Bucket Pin Reach at Maximum Lift 369 mm 14.5 in
5 11 8
9 10
7 6
18 12
13 19
20 1
2 3
4 17
14 15
16 3.A.9.b
Packet Pg. 121 Attachment: Caterpillar 289D3 Specifications (Supplemental Appropriation for the Purchase of Compact Truck Loader) 3 289D3 Compact Track Loader

MANDATORY EQUIPMENT

STANDARD EQUIPMENT
n Hydraulics, Standard or High Flow XPS
n Quick Coupler, Mechanical or Powered
n High Visibility Seat Belt, 50 mm (2 in) or 75 mm (3 in) n Steel Imbed Rubber Track – 450 mm (17.7 in)
n Dual Flange Front Idler/Single Flange Rear Idler or Triple Flange Front/Rear Idlers

PERFORMANCE PACKAGES
n Performance Package H1: Standard Flow Hydraulics (No Self Level) n Performance Package H2: Standard Flow, Dual Direction Electronic Self Level (Raise and Lower), Work Tool Return to Dig, Work Tool Positioner, and Electronic Snubbing (Raise and Lower)
n Performance Package H3: High Flow XPS, Dual Direction Electronic Self Level (Raise and Lower), Work Tool Return to Dig, Work Tool Positioner, and Electronic Snubbing (Raise and Lower)

COMFORT PACKAGES
n Open ROPS (C0): Static Seat (No Foot Throttle, Headliner, Heater or Door)
n Open ROPS (C1): Foot Throttle, Headliner, Cup Holder, and choice of Seat (Mechanical Suspension or High Back, Heated, Air Ride Seat) (No Heater or Door)
n Enclosed ROPS with Heater (C2): Foot Throttle, Headliner, Heater and Defroster, Side Windows, Cup Holder, Radio Ready, choice of Seat (Mechanical Suspension or High Back, Heated, Air Ride Seat) and Door (Glass or Polycarbonate)
n Enclosed ROPS with A/C (C3): C2 + Air Conditioner

ELECTRICAL
n 12 volt Electrical System
n 80 ampere Alternator
n Ignition Key Start/Stop Switch
n Lights: Gauge Backlighting, Two Rear Tail Lights, Two Rear Halogen Working Lights, Two Adjustable Front Halogen Lights, Dome Light n Backup Alarm
n Heavy Duty Battery, 850 CCA

OPERATOR ENVIRONMENT
n Advanced Display with Rearview Camera: Full Color, 127 mm (5 in) LCD screen; Advanced Multi-operator Security System; On-screen Adjustments for Implement Response, Hystat Response and Creep Control n Gauges: Fuel Level, Hour Meter
n Operator Warning System Indicators: Air Filter Restriction, Alternator Output, Armrest Raised/Operator Out of Seat, Engine Coolant Temperature, Engine Oil Pressure, Glow Plug Activation, Hydraulic Filter Restriction, Hydraulic Oil Temperature, Park Brake Engaged, Engine Emission System
n Adjustable Vinyl Seat
n Fold In Ergonomic Contoured Armrest
n Control Interlock System, when operator leaves seat or armrest raised:

Hydraulic System Disables, Hydrostatic Transmission Disables, Parking Brake Engages
n ROPS Cab, Open, Tilt Up
n FOPS, Level I
n Top and Rear Windows
n Floor Mat
n Interior Rearview Mirror
n 12 volt Electric Socket
n Horn
n Hand (Dial) Throttle, Electronic
n Adjustable Joystick Controls
n Anti-theft Security System with 6-button Keypad
n Storage Compartment with Netting

POWER TRAIN
n Cat C3.3B, Turbo Diesel Engine
n Air Cleaner, Dual Element, Radial Seal
n S·O·SSM Sampling Valve, Hydraulic Oil
n Filters, Cartridge-type, Hydraulic
n Filters, Canister-type, Fuel and Water Separator
n Radiator/Hydraulic Oil Cooler (side-by-side)
n Spring Applied, Hydraulically Released, Wet Multi Disc Parking Brakes n Hydrostatic Transmission, Two Speed Travel
n Suspension – Independent Torsion Axles (4)
OTHER
n Engine Enclosure, Lockable
n Extended Life Antifreeze, –37° C (–34° F)
n Machine Tie Down Points (6)
n Support, Lift Arm
n Hydraulic Oil Level Sight Gauge
n Radiator Coolant Level Sight Gauge
n Radiator, Expansion Bottle
n Cat ToughGuard™ Hose
n Auxiliary, Hydraulics, Continuous Flow
n Heavy Duty, Flat Faced Quick Disconnects with
Integrated Pressure Release
n Split D-Ring to Route Work Tool Hoses Along Side of Left Lift Arm n Electrical Outlet, Beacon
n Belly Pan Cleanout
n Variable Speed Demand Fan
n Product Link™ PL243, Cellular

3.A.9.b
Packet Pg. 122 Attachment: Caterpillar 289D3 Specifications (Supplemental Appropriation for the Purchase of Compact Truck Loader) 289D3 Compact Track Loader
AEHQ8221-01 (09-2021)
Replaces AEHQ8221
(S Am, AME, CIS,
APD-LRC Regions)
For more complete information on Cat products, dealer services, and industry solutions, visit us on the web at www.cat.com
© 2021 Caterpillar
All rights reserved
Materials and specifications are subject to change without notice. Featured machines in photos may include additional equipment. See your Cat dealer for available options.

CAT, CATERPILLAR, LET’S DO THE WORK, their respective logos, “Caterpillar Corporate Yellow,” the “Power Edge” and Cat “Modern Hex” trade dress as well as corporate and product identity used herein, are trademarks of Caterpillar and may not be used without permission.

OPTIONAL EQUIPMENT
n Hand-Foot Style Controls
n External Counterweights
n Beacon, Rotating
n Engine Block Heater – 120V
n Oil, Hydraulic, Cold Operation
n Paint, Custom
n Heavy Duty Battery, 1,000 CCA
n Product Link PL641, Cellular
n Ride Control
n Bluetooth® Radio with Microphone (AM/FM/Weather Band Receiver with USB and Auxiliary Input Jack)

3.A.9.b
Packet Pg. 123 Attachment: Caterpillar 289D3 Specifications (Supplemental Appropriation for the Purchase of Compact Truck Loader) March 21, 2023
TO: City Council
REQUESTED BY: Erika Gomez, Finance Director
APPROVED BY: Robert A. Johnson, City Manager
SUBJECT: Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2022
RECOMMENDATION:

Staff recommends that the City Council receive and file the Annual Financial Report of the City of San Jacinto for the fiscal year ended June 30, 2022, as well as the “SAS 114” Report, and the “GAS” Report.

BACKGROUND:

An audit of financial transactions and internal controls is both legally required and mandated under bond covenants. Audit activities were conducted by the firm Rogers, Anderson, Malody & Scott, LLP (RAMS) at various times beginning in July 2022. Finance staff received a draft of the report in February 2023, performed a review of the report, and completed the Management’s Discussion and Analysis (MD&A) in March 2023.

DISCUSSION:

RAMS has rendered an unmodified opinion that the general purpose financial statements, present fairly, in all material respects, the financial position of the City of San Jacinto at June 30, 2022, and the changes in financial position for the year then ended in conformity with accounting principles generally accepted in the United States of America.

RAMS is also required, by professional standards, to provide certain information regarding the audit process and its responsibilities under generally accepted auditing standards and Government Auditing Standards. The attached “SAS 114” report communicates this information.

RAMS is also required, by professional standards, to provide a 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. Accordingly, the “GAS” report is also presented.

Once received and filed, a copy of the Annual Financial Report will be available for download on the City’s website.

4.1 Packet Pg. 124
Staff recommends that the City Council receive and file the Annual Financial Report of the City of San Jacinto for the fiscal year ended June 30, 2022, as well as the “SAS 114” Report, and the “GAS” Report.

FISCAL IMPACT:

This action has no fiscal impact.

ATTACHMENTS:
2022 Financial Statements
SAS 114
GAS Report

4.1 Packet Pg. 125
City of San Jacinto, California

ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2022

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Packet Pg. 127 Attachment: 2022 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2022) City of San Jacinto
Annual Financial Report
For the Year Ended June 30, 2022
Table of Contents
PAGE
Independent Auditor's Report 1
Management's Discussion and Analysis 4
Basic Financial Statements
Government-Wide Financial Statements
Statement of Net Position 12
Statement of Activities 13
Fund Financial Statements
Governmental Funds
Balance Sheet 15
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position 16
Statement of Revenues, Expenditures and Changes in Fund Balances 17 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities 18 Proprietary Funds
Statement of Net Position 19
Statement of Revenues, Expenses and Changes in Net Position 20 Statement of Cash Flows 21
Fiduciary Funds
Statement of Fiduciary Net Position 22
Statement of Changes in Fiduciary Net Position 23
Notes to the Basic Financial Statements 24
Required Supplementary Information
Budgetary Comparison Schedules
General Fund 62
LLPD #2 63
Schedule of the City’s Proportionate Share of the Plan’s Net Pension Liability and Related Ratios as of the
Measurement Date - Last 10 Years
Schedule of Plan Contributions - Last 10 Years
64 65
Non-Major Governmental Funds
Combining Balance Sheet - Non-major funds
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Non-major funds
66 73

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Packet Pg. 129 Attachment: 2022 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2022) -1-
Independent Auditor’s Report
To the Honorable Mayor and Members of the City Council
of the City of San Jacinto
San Jacinto, California
Report on the Audit of the Financial Statements
Opinions
We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of San Jacinto, California (the City), as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2022, and the respective changes in financial position and, where applicable, cash flows thereof 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.

Emphasis of a Matter
As discussed in Note 1 of the financial statements, the City adopted the provisions of Governmental Accounting Standards Board (GASB) Statement No. 87, Leases. Our opinions are not modified with respect to this matter.

4.1.a
Packet Pg. 130 Attachment: 2022 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2022) -2-
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 twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.

Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS 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, 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.

4.1.a
Packet Pg. 131 Attachment: 2022 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2022) -3-
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the required supplementary information, such as management’s discussion and analysis and those schedules 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 are presented for purposes of additional analysis and are not a required part of the basic financial statements.

The 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 Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated March 16, 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
March 16, 2023

4.1.a
Packet Pg. 132 Attachment: 2022 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2022) Management’s Discussion and Analysis

4.1.a
Packet Pg. 133 Attachment: 2022 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2022) City of San Jacinto
Management’s Discussion and Analysis
For the Year Ended June 30, 2022
-4-
As management of the City of San Jacinto, we offer readers of the City of San Jacinto’s financial statements this narrative overview and analysis of the financial activities of the City for the fiscal year ending June 30, 2022. We encourage readers to consider the information presented here in conjunction with the City’s financial statements, which follow this discussion.

FINANCIAL HIGHLIGHTS
 Total assets and deferred outflows of resources of the City exceeded its liabilities and deferred inflows of resources at the close of the most recent fiscal year by $154,237,094 (net position). Of this amount, $20,447,628 represents unrestricted net position, which may be used to meet the government’s ongoing obligations to citizens and creditors.
 The City’s total net position increased by $5,451,192, from the prior fiscal year primarily due to increased sales tax collections. Fiscal year 21/22 was the first full year of collections of transactions and use tax since Measure V passed in November 2020.
 At the close of the current fiscal year, the City’s governmental funds reported combined fund balances of $45,242,379, an increase of $7,390,460 in comparison with the prior year. Approximately 16.24 percent of this amount ($7,346,803) is available for spending at the government’s discretion (unassigned fund balance).
 At the end of the current fiscal year, unrestricted fund balance (the total of the unassigned components of fund balance) for the General Fund was $12,290,884, or approximately 45 percent of total general fund expenditures.

OVERVIEW OF THE FINANCIAL STATEMENTS
This annual report consists of four parts – Management’s Discussion and Analysis (this portion), the basic financial statements, Required Supplementary Information, and optional combining statements for non-major governmental funds. The basic financial statements include two kinds of statements that present different views of the City.  The government-wide financial statements provide both long-term and short-term information about the City’s overall financial status, in a manner similar to private sector business.  Fund financial statements focus on individual parts of the City, reporting the City’s operations in more detail than the government-wide financial statements.
 Governmental fund statements tell how general government services, such as community development, were financed in the short-term as well as what remains for future spending.  Proprietary fund statements offer short-term and long-term financial information about the activities the City operates like businesses, such as utility services.  Fiduciary fund statements provide information about financial relationships in which the City acts solely as a trustee or agent for the benefit of others, to whom the resources belong.

Statements
Management's
Discussion
and
Components of the Financial Section
Statements
Financial
Statements Statements Financial
Financial
Analysis
Basic
Summary Detail
Required
Supplementary
Information
Notes
to the
Government-wide Fund
Financial

4.1.a
Packet Pg. 134 Attachment: 2022 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2022) City of San Jacinto
Management’s Discussion and Analysis
For the Year Ended June 30, 2022
-5-
The financial statements also include notes that explain some of the information in the financial statements and provide more detailed data. The statements are followed by a comparison of actual results with the original and final amended budget for the general fund and each major special revenue fund with an annually adopted budget.

In addition to these required elements, we have included combining statements that provide details about our nonmajor governmental funds, which are presented in total in a column in the basic financial statements.

Government-wide Financial Statements
The government-wide statements report information about the City as a whole using accounting methods similar to those used by private-sector companies. The statement of net position includes all of the City’s assets and liabilities.

All current year revenues and expenses are reported in the statement of activities regardless of when cash is received or paid.

The two government-wide statements report the City’s net position and how they have changed during the fiscal year. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial health of the City is improving or deteriorating.

The government-wide financial statements of the City are divided as follows:
 Governmental activities – All of the City’s basic services are included here, such as police, fire, engineering, streets, parks and recreation, history preservation, community development, redevelopment and general government. Taxes and state and federal grants finance most of these activities.  Business-type activities – The City’s utility services provided are funded by customer fees.

Fund Financial Statements
A fund is a group of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. Fund financial statements provide more detailed information about the City’s largest funds, not the City as a whole.

The City has three types of funds:
 Governmental funds – All of the City’s basic services are included in governmental funds, which focus on (1) short-term inflows and outflows of spendable resources, and (2) the remaining year-end balances available for spending. Because this information does not encompass the additional long-term focus of the government-wide statements, reconciliations that explain the relationship (or differences) between governmental funds and governmental activities follow each of the governmental funds statements.  Proprietary funds – Services for which customer fees are intended to finance the costs of operations are generally reported in proprietary funds. Proprietary funds financial statements, like the government-wide statements, provide both long-term and short-term financial information.  Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements.
 Internal service funds report activities that provide services for the City’s other programs and activities, such as the City’s self-insurance arrangements.
 Fiduciary funds – The City is the trustee for certain assessment and community facilities district funds. It is also responsible for other trust account assets, which because of trust agreements, can be used only for the trust beneficiaries. The City is responsible for ensuring that the assets reported in these funds are used for their intended purposes. All of the City’s fiduciary activities are reported in a separate statement of fiduciary net position. We exclude these activities from the City’s government-wide financial statements because the City cannot use these assets to finance its operations.

4.1.a
Packet Pg. 135 Attachment: 2022 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2022) City of San Jacinto
Management’s Discussion and Analysis
For the Year Ended June 30, 2022
-6-

FINANCIAL ANALYSIS OF THE GOVERNMENT-WIDE STATEMENTS
The government-wide financial statements provide long-term and short-term information about the City’s overall financial condition. This analysis addresses the financial statements of the City as a whole.

City of San Jacinto
Government-wide Financial Statements - Summary of Net Position As of June 30, 2022 and 2021
(in thousands)
2022 2021 2022 2021 2022 2021
Cash and investments, unrestricted 57,126 $ 43,845 $ 7,327 $ 5,836 $ 64,453 $ 49,681 $ 29.7% Current and other assets 15,651 11,875 3,207 3,273 18,858 15,148 24.5% Capital assets, net 101,787 104,263 11,452 12,170 113,239 116,433 -2.7% Intangible assets, net 431 - 165 - 596 -
Total assets 174,995 159,983 22,151 21,279 197,146 181,262 8.8% Deferred outflows of resources 2,404 2,383 575 576 2,979 2,959 0.7% Long-term liabilities 4,465 4,053 3,758 3,917 8,223 7,970 3.2% Other liabilities 27,674 22,895 3,611 4,031 31,285 26,926 16.2% Total liabilities 32,139 26,948 7,369 7,948 39,508 34,896 13.2% Deferred Inflows of Resources 5,211 496 1,169 43 6,380 539 1083.7% Net position:

Net investment in capital assets 98,558 100,830 7,979 8,331 106,537 109,161 -2.4% Restricted 29,204 27,253 - - 29,204 27,253 7.2%
Unrestricted 12,287 6,839 6,209 5,533 18,496 12,372 49.5% Total net position 140,049 $ 134,922 $ 14,188 $ 13,864 $ 154,237 $ 148,786 $ 3.7% Governmental
Activities
Business-type
Activities
Total Primary
Government Total Percent
Change
Net position represents the difference between the City’s resources and its obligations. At June 30, 2022, the largest portion of the City’s total net position, approximately 69.1 percent, reflects the investment in capital assets less related debt outstanding used to acquire the capital assets. These capital assets are used by the City to provide services to the citizens. Additional capital asset information can be found in the Capital Asset and Debt Administration sections of the MD&A. Restricted net position represents amounts that must be used in accordance with external restrictions. The unrestricted balance of net position may be used at the City’s discretion.

The net position of our business-type activities increased by 2.34 percent to $14,188,460, and the City generally can only use this net position to finance the continuing operations of the business-type activities.

4.1.a
Packet Pg. 136 Attachment: 2022 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2022) City of San Jacinto
Management’s Discussion and Analysis
For the Year Ended June 30, 2022
-7-
City of San Jacinto
Government-wide Financial Statements - Changes in Net Position For the year ended June 30, 2022 and 2021
(in thousands)
Total
Percent
2022 2021 2022 2021 2022 2021 Change
Revenues
Program revenues:

Charges for services 12,575 $ 9,739 $ 22,355 $ 18,262 $ 34,930 $ 28,001 $ 24.7% Operating grants and
contributions 8,604 7,312 - - 8,604 7,312 17.7%
Capital grants and contributions 6,711 6,165 - - 6,711 6,165 8.9% General revenues:

Property taxes/property tax in-lieu 7,820 7,269 - - 7,820 7,269 7.6% Transient occupancy taxes 20 15 - - 20 15 33.3%
Franchise taxes 2,554 2,374 - - 2,554 2,374 7.6%
Sales taxes 11,989 5,734 - - 11,989 5,734 109.1%
Other taxes 224 217 - - 224 217 3.2%
Other (752) 63 8 96 (744) 159 -567.9%
Total revenues 49,745 38,888 22,363 18,358 72,108 57,246 26.0% Expenses
Governmental activities:

General government 3,208 3,135 - - 3,208 3,135 2.3%
Public safety 19,181 16,626 - - 19,181 16,626 15.4%
Public works 11,788 8,885 - - 11,788 8,885 32.7%
Community development 9,577 7,503 - - 9,577 7,503 27.6% Culture and leisure 720 644 - - 720 644 11.8%
Interest on long-term debt 144 150 - - 144 150 -4.0%
Business-type activities:

Water - - 4,803 3,959 4,803 3,959 21.3%
Sewer - - 1,453 1,239 1,453 1,239 17.3%
Power - - 15,782 12,685 15,782 12,685 24.4%
Non-major - - - 2 - 2 -100.0%
Total expenses 44,618 36,943 22,038 17,885 66,656 54,828 21.6% Increase (decrease) in net position 5,127 $ 1,945 $ 325 $ 473 $ 5,452 $ 2,418 $ 125.5% Business-type Total Primary
Activities Activities Government
Governmental
Revenue
The City’s total revenue, excluding transfers, was $72,106,138 for the year ended June 30, 2022. Revenue from governmental activities, excluding transfers, totaled $49,692,713 and revenue from business-type activities totaled $22,413,425, excluding transfers. During 2022, capital grants and contributions, restricted to the construction of capital assets, comprised 10 percent of the total revenue of the City, taxes and other general revenues provided 30 percent of the total revenue of the City, and charges for services and operating grants and contributions provided 60 percent of the total revenue of the City.

Most of the revenues remained stable from 2021 to 2022, with increases due to transactions and use tax receipts from the passage of Measure V.

4.1.a
Packet Pg. 137 Attachment: 2022 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2022) City of San Jacinto
Management’s Discussion and Analysis
For the Year Ended June 30, 2022
-8-
Expenses
The City’s expenses totaled $66,654,946 for the year. Governmental activity expenses totaled $44,617,263, or 67 percent of total expenses. Business-type activities incurred $22,037,683 of expenses during the year, or 33 percent of total expenses.

The City's expenses increased between 2021 and 2022 mainly due to inflation and the higher cost of doing business.

Governmental Activities
The following table shows the cost of each of the City’s major programs and the net cost of the programs. Net cost is the total cost less fees and other direct revenue generated by the activities and reflects the financial burden that was placed on the City’s taxpayers by each of the programs.

City of San Jacinto
Government-wide Financial Statements - Net Cost of Governmental Activities For the year ended June 30, 2022 and 2021
(in thousands)
Percent Percent
2022 2021 Change 2022 2021 Change
General government 3,208 $ 3,135 $ 2.3% 225 $ 187 $ 20.3% Public safety 19,181 16,626 15.4% 10,388 9,967 4.2%
Public works 11,788 8,885 32.7% 6,861 3,466 98.0%
Community development 9,577 7,503 27.6% (1,611) (686) 134.8% Culture and leisure 720 644 11.8% 720 644 11.8%
Total 44,474 $ 36,793 $ 20.9% 16,583 $ 13,578 $ 22.1%
Total Cost
of Services
Net Cost
of Services
The cost for all governmental activities this year was $44,473,559, not including interest expense of $143,704. The City’s taxpayers paid for approximately 50.83 percent of these costs. Fees, grants and contributions funded the balance of the costs of governmental activities.

Business-type Activities
Charges for services of the City’s business-type activities totaled $22,355,001. Expenses of business-type activities were $22,037,683. Capital grants and contributions were not received in the water, solid waste, sewer, and power activities to finance capital improvements. The costs of capital improvements are reported as capital assets in the statement of net position, rather than as expenses in the statement of activities.

FINANCIAL ANALYSIS OF THE FUND STATEMENTS
The City uses fund accounting to assure and demonstrate compliance with finance-related legal requirements. The fund financial statements focus on individual parts of the City’s government, reporting the City’s operations in more detail than the government-wide financial statements.

The City’s governmental funds provide information on near-term inflows, outflows and balances of spendable resources. The City’s governmental funds reported combined fund balances at June 30, 2022 of $45,242,379, an increase of $7,390,460 from the previous fiscal year. Within the change of combined fund balances, the General Fund increased by $5,612,511, due to passage of Measure V.

4.1.a
Packet Pg. 138 Attachment: 2022 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2022) City of San Jacinto
Management’s Discussion and Analysis
For the Year Ended June 30, 2022
-9-
City of San Jacinto
Fund Financial Statements - Fund Balances
As of June 30, 2022 and 2021
(in thousands)
Percent
2022 2021 Change
Nonspendable:

Prepaids $ 159 $ 78 103.85%
Advances receivable 6,716 - 100.00%
Land held for resale 343 - 0.00%
Total nonspendable fund balances 7,218 78 9153.98%
Restricted:

Land held for resale - 340 0.00%
Advances receivable - 2,778 -100.00%
Special revenue funds 29,109 25,155 15.72%
Total restricted fund balances 29,109 28,273 2.96%
Assigned:

Capital projects funds 1,569 1,501 4.53%
Total assigned fund balances 1,569 1,501 4.53%
Unassigned:

General fund 12,290 10,602 15.92%
Debt service funds - - 0.00%
Special revenue funds (4,652) (2,602) 78.79%
Capital projects funds (292) - 100.00%
Total unassigned fund balances 7,346 8,000 -8.18%
Total fund balance $ 45,242 $ 37,852 19.52%
General Fund Budgetary Highlights
Over the course of the year, the City revised the City budget with adjustments for revenue and expenditure appropriations approved after the original budget was adopted.

Certain capital project appropriations originally budgeted but not expended in fiscal year 2021 were re-appropriated in 2022 as part of the City’s capital budget.

After taking into account these adjustments, actual expenditures were $468,057 over the final budget amounts.

Resources available for appropriation were ($6,436,325) less than the final budgeted amount, primarily due to less intergovernmental revenues received than originally budgeted.

4.1.a
Packet Pg. 139 Attachment: 2022 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2022) City of San Jacinto
Management’s Discussion and Analysis
For the Year Ended June 30, 2022
-10-

CAPITAL ASSET AND DEBT ADMINISTRATION
Capital Assets
As of June 30, 2022, the City had invested $113,238,485 in a broad range of capital assets, including police and fire equipment, buildings, parks and park improvements, roads, bridges, and water, solid waste and sewer utility systems.

City of San Jacinto
Capital Assets
As of June 30, 2022 and 2021
(net of depreciation, in thousands)
2022 2021 2022 2021 2022 2021
Capital assets not being depreciated:

Land and improvements 5,800 $ 5,800 $ 55 $ 55 $ 5,855 $ 5,855 $ Construction in progress 8,375 10,470 48 18 8,423 10,488 Depreciable capital assets, net of
accumulated depreciation:

Buildings and system 4,107 4,165 3,278 3,411 7,385 7,576 Machinery and equipment 1,417 1,078 3,793 3,917 5,210 4,995 Improvements other than buildings 2,343 1,771 4,278 4,769 6,621 6,540 Infrastructure 79,745 80,979 - - 79,745 80,979
Total 101,787 $ 104,263 $ 11,452 $ 12,170 $ 113,239 $ 116,433 $ Activities Activities Total
Governmental Business-type
This year’s major capital asset additions included:

Government-wide, governmental activities:
 Two road improvement projects completed at a final cost of $3,483,123  New CIP projects of $2,190,463
There were no significant capital asset additions for business type activities.

More detailed information about the City’s capital assets is presented in Note 4 to the financial statements.

Intangible Assets
As of June 30, 2022, the City had the following intangible right to use assets for leased vehicles. More detailed information about the City’s total intangible assets is presented in Note 5 to the financial statements. 2022 2021 2022 2021 2022 2021
Intangible assets, net of amortization:

Intangible right to use asset 431 $ - $ 165 $ - $ 596 $ - $ Activities Activities Total
Governmental Business-type

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Packet Pg. 140 Attachment: 2022 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2022) City of San Jacinto
Management’s Discussion and Analysis
For the Year Ended June 30, 2022
-11-
Long-term Liabilities
At June 30, 2022, the City had $8,222,316 in long-term liabilities outstanding. More detailed information about the City’s total long-term liabilities is presented in Note 6 to the financial statements.

City of San Jacinto
Outstanding Liabilities
As of June 30, 2022 and 2021
(in thousands)
2022 2021 2022 2021 2022 2021
Revenue and other bonds, net - $ 355 $ - $ - $ - $ 355 $ Special assessment debt with
government commitment,
including unpaid interest 1,084 1,084 - - 1,084 1,084
Loans payable - direct borrowing 1,925 2,152 3,300 3,877 5,225 6,029 Capital leases 651 402 349 340 1,000 742
Claims and judgments 325 165 - - 325 165
Compensated absences 480 325 109 85 589 410
Total 4,465 $ 4,483 $ 3,758 $ 4,302 $ 8,223 $ 8,785 $
Governmental Business-type
Activities Activities Total
ECONOMIC FACTORS AND NEXT YEAR’S BUDGET
Since “the Great Recession,” the City has seen significant improvements in economic trends. Despite the economic turmoil caused by the COVID-19 pandemic, the City’s limited categories of revenue (such as not having tourism, hospitality and entertainment industries) helped minimize the economic effects on the City. Residential development and home sales have increased dramatically to their best numbers in a decade. Commercial development is strong as well, with several high-profile projects moving forward. Public safety costs continue to increase, although at a slower rate than previously due to the County’s cost-minded Sheriff. Meanwhile, the City continues to focus on potential commercial growth, economic development, and attracting the businesses desirable to the residents of the City.

The City also placed a transactional-use tax measure (Measure V) on the November 2020 ballot, passing with 69 percent approval. This measure provides an increase in revenue, which will help the City to increase its public safety staffing and undertake much needed projects. However, the United States is encountering its highest levels of inflation in four decades, which is anticipated to significantly affect operating costs and limit the use of this new revenue stream to only the most essential services.

The General Fund budget for 2021-2022 appropriates $27,778,152, in operating and capital expenditures, an increase of 2.7 percent from the prior year.

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 demonstrate the City’s accountability for the money it receives. If you have questions about this report or need additional financial information, contact the City of San Jacinto Department of Finance, Accounting Division, PO Box 488, San Jacinto, California 92581, or visit the City’s web page at www.sanjacintoca.gov.

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Packet Pg. 141 Attachment: 2022 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2022) Basic Financial Statements

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Packet Pg. 143 Attachment: 2022 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2022) Government-Wide Financial Statements

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Packet Pg. 145 Attachment: 2022 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2022) City of San Jacinto
Statement of Net Position
June 30, 2022
The accompanying notes are an integral part of these financial statements. -12-
Governmental Business-Type
Activities Activities Total
ASSETS
Cash and investments 57,126,287 $ 7,327,269 $ 64,453,556 $ Pension trust cash and investments 1,000,000 - 1,000,000 Cash and investments with fiscal agents, restricted 59,877 - 59,877 Receivables, net:

Accounts 1,479,078 5,874,263 7,353,341
Interest 368,743 - 368,743
Taxes 1,460,178 - 1,460,178
Notes receivable 3,105,155 - 3,105,155
Due from other governments 3,810,507 - 3,810,507
Deposits with others 1,009,643 - 1,009,643
Prepaids 119,899 12,705 132,604
Internal balances 2,842,105 (2,842,105) -
Inventories 56,302 161,881 218,183
Land held for resale 339,807 - 339,807
Capital assets:

Land and construction in progress 14,174,653 103,587 14,278,240 Other capital assets, net of depreciation 87,612,085 11,348,160 98,960,245 Intangible assets, net of amortization 431,055 164,849 595,904 Total assets 174,995,374 22,150,609 197,145,983

DEFERRED OUTFLOWS OF RESOURCES
Loss on retirement of bonds - 10,862 10,862
Pension related 2,403,942 564,667 2,968,609
Total deferred outflows of resources 2,403,942 575,529 2,979,471

LIABILITIES
Accounts payable and accrued liabilities 7,442,270 1,802,285 9,244,555 Accrued wages 161,410 40,507 201,917
Accrued interest payable 8,526 44,647 53,173
Due to other governments 145,363 - 145,363
Retention payable 100,346 - 100,346
Deposits payable 8,251,529 396,297 8,647,826
Unearned revenues 5,140,984 35,140 5,176,124
Noncurrent liabilities:

Due within one year 503,299 433,308 936,607
Due in more than one year 3,961,440 3,324,269 7,285,709 Net pension liability 6,424,675 1,292,822 7,717,497
Total liabilities 32,139,842 7,369,275 39,509,117

DEFERRED INFLOWS OF RESOURCES
Pension related 5,210,840 1,168,403 6,379,243

NET POSITION
Net investment in capital assets 98,557,490 7,979,297 106,536,787 Restricted for:

Public safety 1,638,362 - 1,638,362
Public works 15,494,694 - 15,494,694
Community development 9,826,933 - 9,826,933
Culture and leisure 2,243,961 - 2,243,961
Unrestricted 12,287,194 6,209,163 18,496,357
Total net position 140,048,634 $ 14,188,460 $ 154,237,094 $ Primary Government

4.1.a
Packet Pg. 146 Attachment: 2022 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2022) City of San Jacinto
Statement of Activities
For the Year Ended June 30, 2022
The accompanying notes are an integral part of these financial statements. -13-
Operating Capital
Charges for Contributions Contributions
Functions/Programs Expenses Services and Grants and Grants Primary government
Governmental activities:

General government 3,207,999 $ - $ 2,983,051 $ - $
Public safety 19,180,992 8,122,529 669,966 -
Public works 11,787,660 - 3,613,270 1,313,014
Community development 9,576,794 4,452,567 1,337,753 5,397,741 Culture and leisure 720,114 - - -
Interest on long-term debt 143,704 - - -
Total governmental activities 44,617,263 12,575,096 8,604,040 6,710,755 Business-type activities:

Water 4,803,266 6,156,334 - -
Sewer 1,452,866 1,318,862 - -
Power 15,781,551 14,879,805 - -
Total business-type activities 22,037,683 22,355,001 - - Total 66,654,946 $ 34,930,097 $ 8,604,040 $ 6,710,755 $ General revenues:

Taxes:

Property tax, levied for general purpose
Property tax in-lieu of motor vehicle
Transient occupancy taxes
Franchise tax
Sales tax
Other taxes
Unrestricted investment earnings
Gain (loss) on sale of capital assets
Other
Transfers
Total general revenues
Change in net position
Net position, beginning of year
Net position, end of year
Program Revenues

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Packet Pg. 147 Attachment: 2022 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2022) Continued
-14-
Governmental Business-Type
Activities Activities Total
$ - (224,948) $ (224,948) $
- (10,388,497) (10,388,497)
- (6,861,376) (6,861,376)
- 1,611,267 1,611,267
- (720,114) (720,114)
- (143,704) (143,704)
- (16,727,372) (16,727,372)
1,353,068 - 1,353,068
(134,004) - (134,004)
(901,746) - (901,746)
317,318 - 317,318
317,318 (16,727,372) (16,410,054)
3,419,939 - 3,419,939
4,399,603 - 4,399,603
19,616 - 19,616
2,554,170 - 2,554,170
11,989,351 - 11,989,351
223,533 - 223,533
45,589 (1,439,872) (1,394,283)
12,835 47,695 60,530
- 588,787 588,787
(51,098) 51,098 -
7,326 21,853,920 21,861,246
324,644 5,126,548 5,451,192
13,863,816 134,922,086 148,785,902
$ 14,188,460 140,048,634 $ 154,237,094 $
Net Revenue (Expense) and Change in Net Position
Primary Government

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Packet Pg. 149 Attachment: 2022 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2022) Fund Financial Statements

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Packet Pg. 151 Attachment: 2022 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2022) City of San Jacinto
Balance Sheet – Governmental Funds
June 30, 2022
The accompanying notes are an integral part of these financial statements. -15-
Special Revenue
Fund
General LLPD#2
City Capital
Projects
TUMF Capital
Projects
Total Non-Major
Governmental
Funds
Total
Governmental
Funds
ASSETS
Cash and investments 21,446,805 $ 8,969,593 $ 9,548,598 $ - $ 17,006,779 $ 56,971,775 $ Pension trust cash and investments 1,000,000 - - - - 1,000,000 Restricted cash with fiscal agent 59,877 - - - - 59,877 Receivables, net:

Accounts 1,105,789 - 129,868 - 96,557 1,332,214
Interest 111,468 - - - 257,275 368,743
Taxes and assessments 222,896 66,876 - - 1,170,406 1,460,178 Notes 140,000 - - - 2,965,155 3,105,155
Inventory 56,302 - - - - 56,302
Prepaids 102,245 - - - 3,120 105,365
Deposits 38,000 - - - - 38,000
Due from other governments 2,684,561 - - - 1,125,946 3,810,507 Due from other funds 4,177,351 - - - - 4,177,351
Advances receivable 6,561,180 155,000 - - 4,272,838 10,989,018 Land held for resale - - - - 339,807 339,807
Total assets 37,706,474 $ 9,191,469 $ 9,678,466 $ - $ 27,237,883 $ 83,814,292 $

LIABILITIES
Accounts payable 4,803,045 $ 230,157 $ 1,040,006 $ - $ 1,314,322 $ 7,387,530 $ Accrued payroll 148,211 - - - 4,705 152,916
Deposits payable 8,251,529 - - - - 8,251,529
Retention payable - - 100,346 - - 100,346
Due to other governments 1,235 - - - 144,128 145,363
Due to other funds - - - 292,420 1,042,826 1,335,246
Unearned revenue 5,124,317 - - - 16,667 5,140,984
Advances payable - - 8,538,114 - 2,450,904 10,989,018
Total liabilities 18,328,337 230,157 9,678,466 292,420 4,973,552 33,502,932

DEFERRED INFLOWS OF RESOURCES
Unavailable revenue 307,649 - - - 4,761,332 5,068,981

FUND BALANCES
Nonspendable 6,719,727 155,000 - - 342,927 7,217,654
Restricted 59,877 8,806,312 - - 20,242,636 29,108,825
Assigned - - - - 1,569,097 1,569,097
Unassigned 12,290,884 - - (292,420) (4,651,661) 7,346,803 Total fund balances (deficit) 19,070,488 8,961,312 - (292,420) 17,502,999 45,242,379 Total liabilities, deferred inflows
of resources and fund balances 37,706,474 $ 9,191,469 $ 9,678,466 $ - $ 27,237,883 $ 83,814,292 $ Capital Projects Funds

4.1.a
Packet Pg. 152 Attachment: 2022 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2022) City of San Jacinto
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position
June 30, 2022
The accompanying notes are an integral part of these financial statements. -16-
Fund balance of governmental funds 45,242,379 $
Amounts reported for governmental activities in
the Statement of Net Position are different because:

Net investment in capital assets have not been included as financial resources in governmental funds.

Capital assets not being depreciated 14,174,653
Capital assets being depreciated 217,835,885
Accumulated depreciation (130,223,800)
Intangible assets being depreciated 548,581
Accumulated amortization (117,526)
Long-term liabilities applicable to governmental activities are not due and payable in the current period and, accordingly, are not reported as governmental fund liabilities. All liabilities (both current and long-term) are reported in the Statement of Net Position.

Compensated absences (479,703)
Special assessment debt and unmatured interest (1,084,259) Lease liabilities (651,425)
Loans payable (1,924,619)
Accrued interest payable (8,526)
Net pension liability (6,424,675)
Unavailable revenue balances relating to various accounts and loans receivable are not reported as unavailable revenue in the Statement of Net Position since recognition is not based upon measurable and available criteria.

Revenue not received by the recognition period 615,942
Low and moderate housing loans receivable 3,111,505
Accrued interest on low and moderate housing loans 257,275 Special assessments receivable 1,084,259
Pension related deferred outflows and inflows of resources in governmental activities are not financial resources and, therefore, are not reported in the governmental funds.

Deferred outflows of resources - pension related items 2,403,942 Deferred inflows of resources - pension related items (5,210,840) Internal Service Funds are used by management to charge costs of certain activities on individual funds. The assets and liabilities of the Internal Service Funds must be added to the Statement of Net Position since revenue recognition is not based upon measurable and available criteria.

Fund Net Position of Internal Service Funds 899,586
Net position of governmental activities 140,048,634 $

4.1.a
Packet Pg. 153 Attachment: 2022 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2022) City of San Jacinto
Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds
For the Year Ended June 30, 2022
The accompanying notes are an integral part of these financial statements. -17-
Special
Revenue Fund
General LLPD#2
City Capital
Projects
TUMF Capital
Projects
Total Non-Major
Governmental
Funds
Total
Governmental
Funds

REVENUES
Taxes 17,677,288 $ - $ - $ - $ 438,516 $ 18,115,804 $
Assessments - 4,595,318 - - 4,815,302 9,410,620
Licenses and permits 2,397,150 - - - - 2,397,150
Fines and forfeitures 319,687 - - - 494,887 814,574
Development fees 514,169 - - - 1,602,675 2,116,844
Intergovernmental 5,298,721 - - - 3,946,510 9,245,231
Charges for services 4,270,237 - - - - 4,270,237
Investment earnings (1,447,393) 53,953 - - 133,725 (1,259,715) Other/overhead allocations 3,716,921 - - - 240,872 3,957,793 Total revenues 32,746,780 4,649,271 - - 11,672,487 49,068,538

EXPENDITURES
Current:

General government 2,874,920 - - - 25,812 2,900,732
Public safety 15,427,761 - - - 3,566,402 18,994,163
Public works 2,407,348 - - - 1,940,078 4,347,426
Community development 5,065,721 3,916,778 - - 261,507 9,244,006 Culture and leisure 108,555 - - - 605,840 714,395
Capital outlay 1,013,331 - 4,490,540 - 284,682 5,788,553 Debt service:

Principal 287,993 - - - - 287,993
Interest 124,466 - - - 10,712 135,178
Total expenditures 27,310,095 3,916,778 4,490,540 - 6,695,033 42,412,446 Excess (deficiency) of revenues
over (under) expenditures 5,436,685 732,493 (4,490,540) - 4,977,454 6,656,092

OTHER FINANCING SOURCES (USES)
Proceeds from sale of property 47,695 - - - - 47,695
Lease acquisition 548,581 - - - - 548,581
Transfers in 543,893 - 4,490,540 - 153,463 5,187,896
Transfers out (964,343) - - (283,494) (3,801,967) (5,049,804) Total other financing sources (uses) 175,826 - 4,490,540 (283,494) (3,648,504) 734,368 Net change in fund balances 5,612,511 732,493 - (283,494) 1,328,950 7,390,460 Fund balances (deficit), beginning of year 8,228,819 13,457,977 - (8,926) 16,174,049 37,851,919 Fund balances (deficit), end of year $ 8,961,312 19,070,488 $ - $ (292,420) $ 17,502,999 $ 45,242,379 $ Capital Projects Funds

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Packet Pg. 155 Attachment: 2022 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2022) City of San Jacinto
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, 2022
The accompanying notes are an integral part of these financial statements. -18-
Net change in fund balances - total governmental funds 7,390,460 $ 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 cost of those assets are allocated over their estimated useful lives as depreciation expense or allocated to the appropriate functional expense when the cost is below the capitalization threshold. Additionally, capital contributions are reported as program revenues in the Statement of Activities.

This activity is reconciled as follows:

Cost of assets capitalized less disposals 2,895,494
Depreciation expense (5,371,808)
Intangible assets acquired 548,581
Amortization expense (117,526)
Revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the fund. 576,480 Long-term debt proceeds provide current financial resources to Governmental Funds, but issuing debt increases long-term liabilities in the Government-Wide Statement of Net Position. Principal repayments of long-term debt are expenditures/uses in the Governmental Funds, but they reduce long-term liabilities in the Government-Wide Statement of Net Position.

Repayments:
2014 pension obligation bonds 72,746
2018 street light financing 116,628
Lease liabilities 204,662
Issuance:

Lease acquisition (548,581)
Some expenses reported in the Statement of Activities do not require the use of current financial resources, and therefore, are not reported as expenditures in the governmental funds.

Change in compensated absences (136,476)
Change in accrued interest payable (8,526)
Pension expense net of adjustments (453,112)
Internal Service Funds are used by management to charge the cost of insurance to individual funds. The net revenue of the Internal Service Funds are reported with governmental activities. (42,474)
Change in net position of governmental activities 5,126,548 $

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Packet Pg. 156 Attachment: 2022 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2022) City of San Jacinto
Statement of Net Position – Proprietary Funds
June 30, 2022
The accompanying notes are an integral part of these financial statements. -19-
Governmental
Activities
Water Sewer Power Total
Internal Service
Fund
ASSETS
Current assets:

Cash and investments 4,761,386 $ 2,565,883 $ - $ 7,327,269 $ 154,512 $ Receivables, net:

Accounts 999,177 366,976 4,508,110 5,874,263 146,864
Deposits with others - - - - 971,643
Inventories 161,881 - - 161,881 -
Prepaid expenses 5,975 5,975 755 12,705 14,534
Total current assets 5,928,419 2,938,834 4,508,865 13,376,118 1,287,553 Non-current assets:

Capital assets:

Land 55,222 - - 55,222 -
Construction in progress 35,405 12,960 - 48,365 -
Building and system 6,677,062 31,301 - 6,708,363 -
Machinery and equipment 6,664,264 1,039,044 14,564 7,717,872 - Improvements other than buildings 6,017,823 3,824,233 - 9,842,056 - Less accumulated depreciation (10,379,415) (2,536,832) (3,884) (12,920,131) - Intangible assets:

Vehicles 190,812 25,666 - 216,478 -
Less accumulated amortization (43,929) (7,700) - (51,629) - Total non-current assets 9,217,244 2,388,672 10,680 11,616,596 - Total assets 15,145,663 5,327,506 4,519,545 24,992,714 1,287,553

DEFERRED OUTFLOWS OF RESOURCES
Loss on retirement of bonds 10,862 - - 10,862 -
Pension related 376,445 188,222 - 564,667 -
Total deferred outflows of resources 387,307 188,222 - 575,529 -

LIABILITIES
Current liabilities:

Accounts payable 206,457 380,627 1,215,201 1,802,285 54,740 Accrued wages 23,850 14,677 1,980 40,507 8,494
Accrued interest 44,647 - - 44,647 -
Deposits payable 396,297 - - 396,297 -
Due to other funds - - 2,842,105 2,842,105 -
Unearned revenue - - 35,140 35,140 -
Long term liabilities, current portion 327,475 102,889 2,944 433,308 - Total current liabilities 998,726 498,193 4,097,370 5,594,289 63,234 Non-current liabilities:

Claims payable - - - - 324,733
Long term liabilities, net of current portion 3,200,126 116,274 7,869 3,324,269 - Net pension liability 861,881 430,941 - 1,292,822 -
Total non-current liabilities 4,062,007 547,215 7,869 4,617,091 324,733 Total liabilities 5,060,733 1,045,408 4,105,239 10,211,380 387,967

DEFERRED INFLOWS OF RESOURCES
Pension related 778,935 389,468 - 1,168,403 -

NET POSITION
Net investment in capital assets 5,775,345 2,193,272 10,680 7,979,297 - Unrestricted 3,917,957 1,887,580 403,626 6,209,163 899,586 Total net position 9,693,302 $ 4,080,852 $ 414,306 $ 14,188,460 $ 899,586 $ Business-type Activities
Enterprise Funds

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Packet Pg. 157 Attachment: 2022 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2022) City of San Jacinto
Statement of Revenues, Expenses and Changes in Net Position – Proprietary Funds For the Year Ended June 30, 2022
The accompanying notes are an integral part of these financial statements. -20-
Governmental
Activities
Water Sewer Power Total
Internal Service
Fund

OPERATING REVENUES
Sales and charges for services 6,112,436 $ 1,219,896 $ 13,721,205 $ 21,053,537 $ 1,790,678 $ Miscellaneous/sale of ground water 43,898 98,966 1,158,600 1,301,464 128,941 Total operating revenues 6,156,334 1,318,862 14,879,805 22,355,001 1,919,619

OPERATING EXPENSES
Personnel services 691,459 387,666 61,816 1,140,941 271,559 Employee benefits 464,942 247,663 34,719 747,324 140,754 Office expense & field supplies 145,362 35,914 22,340 203,616 8,844 Depreciation 869,394 246,924 972 1,117,290 -
Outside services 524,592 128,109 657,909 1,310,610 1,232,022 Repairs and maintenance 149,185 19,677 - 168,862 211,873 Utilities 660,194 6,401 - 666,595 1,979
Overhead allocations 988,382 371,291 108,120 1,467,793 - Watermaster charges 182,423 - - 182,423 -
Energy purchases - - 14,895,675 14,895,675 -
Claims and judgements - - - - 8,068
Total operating expenses 4,675,933 1,443,645 15,781,551 21,901,129 1,875,099 Operating income (loss) 1,480,401 (124,783) (901,746) 453,872 44,520

NON-OPERATING REVENUES (EXPENSES)
Investment earnings 27,988 17,601 - 45,589 -
Interest and fiscal charges (127,333) (9,221) - (136,554) - Gain (Loss) on disposal of assets 12,835 - - 12,835 -
Total non-operating revenues (expenses) (86,510) 8,380 - (78,130) - Other income (expense) before transfers 1,393,891 (116,403) (901,746) 375,742 44,520 Transfers in - - - - 24,580
Transfers out (51,098) - - (51,098) (111,574)
Change in net position 1,342,793 (116,403) (901,746) 324,644 (42,474) Net position, beginning of year 8,350,509 4,197,255 1,316,052 13,863,816 942,060 Net position, end of year $ 4,080,852 9,693,302 $ 414,306 $ 14,188,460 $ 899,586 $ Business-type Activities
Enterprise Funds

4.1.a
Packet Pg. 158 Attachment: 2022 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2022) City of San Jacinto
Statement of Cash Flows - Proprietary Funds
For the Year Ended June 30, 2022
The accompanying notes are an integral part of these financial statements. -21-
Governmental
Activities
Water Sewer Power Total
Internal Service
Fund

CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers 5,934,270 $ 1,251,310 $ 13,740,104 $ 20,925,684 $ 1,824,572 $ Cash payments to suppliers (2,666,041) (470,108) (15,214,232) (18,350,381) (1,307,828) Cash payments to employees for services (1,077,170) (603,176) (97,727) (1,778,073) (423,530) Net cash provided by (used for)
operating activities 2,191,059 178,026 (1,571,855) 797,230 93,214

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Transfers from other funds (51,098) - - (51,098) (86,994) Cash (paid) received from other funds - - 1,571,855 1,571,855 - Net cash provided by (used for) non-capital
financing activities (51,098) - 1,571,855 1,520,757 (86,994)

CASH FLOWS FROM CAPITAL AND RELATED

FINANCING ACTIVITIES
Acquisition or construction of capital assets (268,786) (78,795) - (347,581) - Proceeds from sale of capital assets 12,835 - - 12,835 - Lease principal paid (37,577) (90,427) - (128,004) -
Bond principal paid (279,203) - - (279,203) -
Interest and fiscal charges paid (121,499) (9,221) - (130,720) - Net cash used for capital and
related financing activities (694,230) (178,443) - (872,673) -

CASH FLOWS FROM INVESTING ACTIVITIES
Interest income received 27,988 17,601 - 45,589 -
Net cash provided by
investing activities 27,988 17,601 - 45,589 -
Net change in cash and cash equivalents 1,473,719 17,184 - 1,490,903 6,220 Cash and cash equivalents, beginning of year 2,548,699 3,287,667 - 5,836,366 148,292 Cash and cash equivalents, end of year 4,761,386 $ 2,565,883 $ - $ 7,327,269 $ 154,512 $ Reconciliation of operating income (loss) to net cash
provided by (used for) operating activities:

Operating income (loss) 1,480,401 $ (124,783) $ (901,746) $ 453,872 $ 44,520 $ Adjustments to reconcile operating income (loss) to
net cash provided by (used for) operating activities:

Depreciation 869,394 246,924 972 1,117,290 -
Change in compensated absences 25,621 3,751 (1,192) 28,180 - (Increase) decrease in assets:

Accounts receivable (238,145) (67,552) (1,139,701) (1,445,398) (95,047) Inventories (93,478) - - (93,478) -
Prepaid expenses (352) (543) 69,245 68,350 (9,332)
Deposits with others - - - - 36,275
Deferred outflows of resources (5,250) (2,624) - (7,874) - Increase (decrease) in liabilities:

Accounts payable 77,927 91,827 400,567 570,321 6,879
Accrued wages (38,295) (17,553) - (55,848) (11,217)
Deposits payable 16,081 - - 16,081 -
Claims payable - - - - 121,136
Deferred inflows of resources 749,801 374,901 - 1,124,702 - Net pension liability (652,646) (326,322) - (978,968) - Total adjustments 710,658 302,809 (670,109) 343,358 48,694 Net cash provided by (used for) operating activities 2,191,059 $ 178,026 $ (1,571,855) $ 797,230 $ 93,214 $ Noncash capital and related financing activities:

Acquisition of property and equipment 190,812 $ 25,666 $ - $ 216,478 $ - $ Enterprise Funds
Business-type Activities -

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Packet Pg. 160 Attachment: 2022 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2022) Fiduciary Funds

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Packet Pg. 161 Attachment: 2022 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2022) City of San Jacinto
Statement of Fiduciary Net Position – Fiduciary Funds
June 30, 2022
The accompanying notes are an integral part of these financial statements. -22-
Private
Purpose
Trust Fund Custodial Fund
ASSETS
Cash and investments 326,093 $ 1,350,658 $
Cash and investments with fiscal agents 4 1,846,154
Receivables:

Due from other governments 234,046 25,777
Prepaid expenses - 2,063
Property held for resale 53,672 -
Capital assets:

Land 220,227 -
Total assets 834,042 3,224,652

DEFERRED OUTFLOW OF RESOURCES
Loss on refunding 4,410 -

LIABILITIES
Accounts payable and accrued liabilities 108,689 -
Unearned revenue 89,918 -
Long-term liabilities:

Due within one year 325,000 -
Due in more than one year 5,285,000 -
Total liabilities 5,808,607 -

NET POSITION (DEFICIT)
Held for dissolution of Redevelopment Agency (4,970,155) - Restricted for bondholders - 3,224,652
Total net position (4,970,155) $ 3,224,652 $

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Packet Pg. 162 Attachment: 2022 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2022) City of San Jacinto
Statement of Changes in Fiduciary Net Position – Fiduciary Funds For the Year Ended to June 30, 2022
The accompanying notes are an integral part of these financial statements. -23-
Private
Purpose Custodial
Trust Fund Fund

ADDITIONS
Property taxes 1,925,380 $ 1,454,346 $
Investment earnings 2,236 6,639
Total additions 1,927,616 1,460,985

DEDUCTIONS
Administrative payments 71,783 45,045
Principal payments to bondholders - 680,000
Interest expense 1,592,785 662,913
Loss on sale of asset 60,109 -
Total deductions 1,724,677 1,387,958
Change in net position 202,939 73,027
Net position (deficit), beginning of year (5,173,094) 3,151,625 Net position (deficit), end of year (4,970,155) $ 3,224,652 $

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Packet Pg. 164 Attachment: 2022 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2022) Notes to the Basic Financial Statements

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Packet Pg. 165 Attachment: 2022 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2022) City of San Jacinto
Notes to the Basic Financial Statements
June 30, 2022
-24-
I. SIGNIFICANT ACCOUNTING POLICIES
Note 1: Summary of significant accounting policies
a. Reporting entity
The City of San Jacinto (City) was incorporated on April 20, 1888 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 generally accepted accounting principles, these financial statements present the City of San Jacinto (the primary government) and its component units. The component units discussed below are included in the reporting entity because of their operational or financial relationships with the City of San Jacinto.

Blended component units:

San Jacinto Financing Authority
The Authority is a joint exercise of powers authority organized and existing under and by virtue of the Joint Exercise of Powers Act. The City formed the Authority by the execution of a joint exercise of powers agreement dated as of May 25, 1993 and amended and restated in its entirety on May 19, 1997 by and between the City and the former Redevelopment Agency. Pursuant to the Joint Powers Act, the Authority is authorized to issue revenue bonds to provide funds to make loans to public entities; such revenue bonds are to be repaid from the repayments of such loans.

The Authority is governed by a five-member Board which consists of all members of the City Council. The Mayor of the City is the Chairperson of the Authority. The City Manager acts as the Executive Director, the City Clerk acts as the Secretary and the Finance Director of the City acts as the Treasurer of the Authority. Debts issued through the San Jacinto Financing Authority are expected to be repaid with City resources. Accordingly, separate financial statements for the Financing Authority are not prepared.

Industrial Development Authority
The Industrial Development Authority of the City of San Jacinto was activated by the City Council of the City of San Jacinto. The purpose of the Industrial Development Authority is to assist the community in industry development by providing a financing mechanism to encourage such development in the City. Separate financial statements for the Industrial Development Authority are not currently prepared.

As the governing bodies of the San Jacinto Financing Authority and Industrial Development Authority are composed entirely of the council members of the City, the above component units were included within the scope of the reporting entity of the City.

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Notes to the Basic Financial Statements
June 30, 2022
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Note 1: Summary of significant accounting policies (continued) b. Government-wide and fund financial statements
The government-wide financial statements include a statement of net position and a statement of activities. These statements present summaries of governmental and business-type activities for the City accompanied by a total column. Fiduciary activities of the City are not included in these statements. Certain eliminations have been made as prescribed by generally accepted accounting principles in regard to interfund activities, payables, and receivables. All internal balances in the statement of net position have been eliminated except those representing balances between the governmental activities and the business-type activities, which are presented as internal balances and eliminated in the total primary government column. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from businesstype activities, which rely to a significant extent on user fees and charges for support.

The statement of activities demonstrates the degree to which the direct and indirect 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, including special assessments, 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 revenue are reported instead as general revenues. In the statement of activities, Internal Service Fund transactions have been eliminated; however, those transactions between the governmental and business-type activities have not been eliminated.

Separate financial statements are provided for governmental, proprietary, and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements.
c. Measurement focus, basis of accounting, and financial statement presentation The government-wide statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund and fiduciary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of the cash flows. Accordingly, all of the City's assets, deferred outflows of resources, liabilities, and deferred inflows of resources, including capital assets, as well as infrastructure assets, and long-term liabilities, are included in the accompanying statement of net position. The statement of activities presents changes in net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred. The types of transactions reported as program revenues for the City are reported in three categories: 1) charges for services, 2) operating grants and contributions, and 3) capital grants and contributions.

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Notes to the Basic Financial Statements
June 30, 2022
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Note 1: Summary of significant accounting policies (continued) c. Measurement focus, basis of accounting, and financial statement presentation (continued) Governmental fund financial statements are reported using the current financial resources measurement focus and the modified-accrual basis of accounting. Under the modified-accrual basis of accounting, revenues are recognized in these funds when susceptible to accrual (i.e., when they are both measurable and available). "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. For this purpose, the City considers property taxes collected after year-end, as available if they are collected within 60 days of the end of the current fiscal period. Other revenues susceptible to accrual include sales tax, state gasoline taxes, utility user’s tax, investment income, and certain other intergovernmental revenues.

Expenditures in the governmental funds are generally recognized in the accounting period in which the related fund liability is incurred, if measurable, except for unmatured principal and interest on general long-term debt, as well as compensated absences and claims and judgments, which are recognized when due.

The City reports the following major governmental funds:

The General Fund is the government'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 LLPD#2 Special Revenue Fund is used to account for special assessment tax revenue activity in the City’s Districts, restricted for maintenance and service to District facilities.

The City Capital Projects Fund is used to account for construction from various sources.

The TUMF Fund is used to account for the funds collected for Transportation Uniform Mitigation Fee and related expenses.

The City reports the following major proprietary funds:

The Water Fund is used to account for the provision of water services to the residences and businesses of part of the City.

The Sewer Fund is used to account for the revenues and expenses in connection with the operation and improvement of the City's sewer system.

The Power Fund is used to account for the revenues and expenses in connection with the Community Choice Aggregation (CCA) program, which allows the City to purchase and generate electricity for residents and businesses within the City.

Additionally, the City reports the following fund types:

The Internal Service Funds are used to account for the resources, goods, and services that are provided by one department to other departments or agencies of the City on a cost-reimbursement basis. The City’s Internal Service Fund accounts for Workers Compensation and General Liability Insurance services.

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Packet Pg. 168 Attachment: 2022 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2022) City of San Jacinto
Notes to the Basic Financial Statements
June 30, 2022
-27-
Note 1: Summary of significant accounting policies (continued) c. Measurement focus, basis of accounting, and financial statement presentation (continued) The Private Purpose Trust Fund is used to account for the activities of the Successor Agency to the Redevelopment Agency to the City of San Jacinto. The fund's primary purpose is to expedite the dissolution of the former Agency's net position (except for the low and moderate income housing funds non-cash assets) in accordance with AB X1 26 and AB 1484.

The Custodial Funds are used to account for the resources held by the City in a fiduciary capacity.

The financial statements of the City have been prepared in conformity with accounting principles generally accepted in the United States of America as applied to governmental agencies. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles, and the City has adopted all pronouncements of the GASB.

As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements.

Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes.

Proprietary funds distinguish operating revenues and expenses from nonoperating items.

Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues for the Enterprise Funds are charges for goods and services. Operating expenses for these same Enterprise Funds include the cost of sales and services, administration expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.

The City's fiduciary funds include a custodial fund for the administration of the 2002-1 CFD debt issuance.
d. Accounting for encumbrances
Encumbrance accounting, under which purchase orders, contracts, and other commitments for the expenditure of monies are recorded in order to reserve that portion of the applicable appropriation, is employed in the governmental fund types.
e. Cash and investments
For the purpose of the statement of cash flows, the City considers cash and cash equivalents as short term, highly liquid investments that are both readily convertible to known amounts of cash and so near their maturity that they present insignificant risk of changes in value because of changes in interest rates. The City follows the practice of pooling cash and investments of all funds. Since cash and investments are pooled the City utilizes the assumption that cash and investments in the Enterprise and Internal Service Funds are cash and cash equivalents.

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Notes to the Basic Financial Statements
June 30, 2022
-28-
Note 1: Summary of significant accounting policies (continued) f. Restricted cash and investments
Cash and investments restricted as to their use either by bond resolution or by the funding source to a specific purpose are classified as restricted cash and investments. g. Inventories
Inventories of materials and supplies are valued at cost using the first-in, first-out basis. The City uses the consumption method of accounting for inventories. h. Prepaid expenses
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. The cost of prepaid items is recorded as expenditures/expenses when consumed rather than purchased. i. Property held for resale
The Successor Agency has property held for resale with a net realizable value of $53,672. j. Capital assets
Capital assets, which include property, plant and equipment, and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items), are reported in the applicable governmental or businesstype activities columns in the government-wide financial statements. Capital assets (excluding infrastructure) are defined by the City as assets with an initial, individual cost of more than $5,000 and an estimated useful life in excess of two years. Infrastructure assets are defined by the City as assets with an initial, individual cost of more than $50,000 and an estimated useful life in excess of two years. Such assets are capitalized at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at acquisition value at the date of acquisition.

Property, plant and equipment of the City is depreciated using the straight-line method over the following useful lives:

Buildings 40 years
Improvements 40 years
Equipment 3 to 7 years
Infrastructure 20 to 80 years
k. Intangible Assets
Intangible Right to Use assets are related to equipment or real property that the City has obtained the right to utilize for a specified period of time through the use of a lease agreement. The lift of the right to use asset is for the same period as the lease and amortized on a straight-line basis over that period.

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Notes to the Basic Financial Statements
June 30, 2022
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Note 1: Summary of significant accounting policies (continued) l. Judgments and claims
The City utilizes its internal service funds to account for judgments and claims. Self-insurance claims payable of $125,254 and $199,479, respectively, are recorded in the Workers’ Compensation and Liability Insurance funds.
m. Compensated absences
In accordance with current standards, a liability is recorded for unused vacation and similar compensatory leave balances since the employees' entitlement to these balances are attributable to services already rendered and it is probable that virtually all of these balances will be liquidated by either paid time off or payments upon termination or retirement and are generally liquidated by the General Fund.

Under current standards, a liability is recorded for unused sick leave balances only to the extent that it is probable that the unused balances will result in payments upon termination. Other amounts of unused sick leave are excluded from the liability since their payment is contingent solely upon the occurrence of a future event (illness) which is outside the control of the City and the employee.

In governmental funds, compensated absences (unpaid vacation and sick leave) are recorded as expenditures in the year they are paid. The balance of unpaid vacation and vested sick leave at year end is recorded in the government-wide financial statements as these amounts will be liquidated from future resources.

Sick leave is payable when an employee is unable to work because of illness. Employees may accrue sick leave up to a maximum of 960 hours. There is a sick leave buyback program. An employee with 2 years of service may sell up to 96 hours of sick leave at the end of the calendar year. After 5 years of service, employees who voluntarily leave or are laid off may cash out sick leave upon separation from service.
n. Interfund advances
The City Capital Projects Fund accounts for the City capital projects expenditures. It is the City’s policy and practice to transfer cash (advance funds), even if not yet received, to the City Capital Projects Fund at the time of project commitment. Advances payable from the City Capital Projects Fund and receivable to the advancing fund, are recorded to reflect the outstanding amounts advanced at June 30, 2022. When funds are expended at the City’s Capital Projects Fund a transfer is recorded between the two funds and the advance is respectively relieved. o. 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. When both restricted and unrestricted resources are available for use, it is the City’s policy to use restricted resources first, and then unrestricted resources as they are needed.

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Packet Pg. 171 Attachment: 2022 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2022) City of San Jacinto
Notes to the Basic Financial Statements
June 30, 2022
-30-
Note 1: Summary of significant accounting policies (continued) p. Use of estimates in the preparation of financial statements The financial statements have been prepared in accordance with generally accepted accounting principles and necessarily include amounts based on estimates and assumptions by management.

Actual results could differ from those amounts.
q. Property tax calendar
In 1978, a state constitutional amendment (Proposition 13) provided that the property tax rate be generally limited to 1% of market value, levied only by the county and shared with all other jurisdictions. The County of Riverside collects property taxes for the City. Tax liens attach annually as of 12:01 A.M. on the first day in March preceding the fiscal year for which the taxes are levied.

The tax levy covers the fiscal period July 1st to June 30th. All secured personal property taxes and one-half of the taxes on real property are due November 1st; the second installment is due February 1st. All taxes are delinquent, if unpaid, on December 10th and April 10th, respectively.

Unsecured personal property taxes become due on the first of March each year and are delinquent, if unpaid, on August 31st. For governmental funds, City property tax revenues are recognized when levied to the extent that they result in current receivables collectible within 60 days. In the government-wide statements, revenues are recognized in the year taxes are levied. r. Pension plan
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, 2020
Measurement Date June 30, 2021
Measurement Period July 1, 2020 to June 30, 2021
s. Fund balance
Fund balance is classified into five different components. The components are nonspendable, restricted, committed, assigned, and unassigned.
 Nonspendable - resources that are not in spendable form or required to be maintained intact such as an endowment.
 Restricted - resources that are subject to externally enforceable legal restrictions; these restrictions are either externally imposed by creditors, grantors, contributors, or laws or regulations of other governments or imposed by law through constitutional provisions or enabling legislation.

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Packet Pg. 172 Attachment: 2022 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2022) City of San Jacinto
Notes to the Basic Financial Statements
June 30, 2022
-31-
Note 1: Summary of significant accounting policies (continued) s. Fund balance (continued)
 Committed - resources that are constrained to specific purposes by a formal action of the City Council such as an ordinance or resolution, whichever is the higher level of constraint. The constraint remains binding unless removed in the same formal manner by the City Council.

Council action to commit fund balance must occur within the fiscal reporting period while the amount committed may be determined subsequently.
 Assigned - resources that are constrained by the City’s intent to be used for specific purposes, but are neither restricted nor committed.
 Unassigned - within the General Fund, the residual resources, either positive or negative, in excess of what can be properly classified in one of the other four fund balance categories.

Within all other governmental funds, any negative residual resources.

When expenditures are incurred for purposes for which both restricted and unrestricted (committed, assigned, or unassigned) fund balances are available, the City’s policy is to first apply restricted fund balance. When expenditures are incurred for purposes for which committed, assigned or unassigned fund balances are available, the City’s policy is to first apply committed fund balance, then assigned fund balance, and finally unassigned fund balance.

Those charged with governance approved the Finance Director to have authority to assign unrestricted fund balance amounts where the City’s intent is for those amounts to be used for specific purposes. This delegation of authority is for the sole purpose of reporting these amounts in the annual financial statements.
t. Deferred outflows/inflows of resources
In addition to assets, the statement of financial position (balance sheet) will sometimes report a separate section for deferred outflows of resources. This separate financial element, deferred outflows of resources, represents a consumption of net position or fund balance that applies to future periods and so will not be recognized as an outflow of resources (expense/expenditure) until then. In addition to liabilities, the statement of financial position (balance sheet) will sometimes report a separate section for deferred inflows of resources. This separate financial element, deferred inflows of resources, represents an acquisition of net position or fund balance that applies to future periods and so will not be recognized as an inflow of resources (revenue) until that time.
u. Implementation of new GASB pronouncement
The Governmental Accounting Standards Board (GASB) has issued Statement No. 87, Leases.

The objective of this Statement is to better meet the information needs of financial statement users by improving accounting and financial reporting for leases by governments. This Statement increases the usefulness of governments’ financial statements by requiring recognition of certain lease assets and liabilities for leases that previously were classified as operating leases and recognized as inflows of resources or outflows of resources based on the payment provisions of the contract. It establishes a single model for lease accounting based on the foundational principle that leases are financings of the right to use an underlying asset. Under this Statement, a lessee is required to recognize a lease liability and an intangible right-to-use lease asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resources, thereby enhancing the relevance and consistency of information about governments’ leasing activities.

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Packet Pg. 173 Attachment: 2022 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2022) City of San Jacinto
Notes to the Basic Financial Statements
June 30, 2022
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II. STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY
Note 1: Summary of significant accounting policies (continued) a. Budgetary principles
General budget policies
The City Council approves each year’s budget submitted by the City Manager prior to the beginning of the new fiscal year. Public meetings are conducted prior to its adoption by the Council. Supplemental appropriations, where required during the period, are also approved by the Council. Several supplemental appropriations were made during the year. Intrafund budget changes are approved by the City Manager. In most cases, expenditures may not exceed appropriations at the department level. At fiscal year-end all unencumbered operating budget appropriations lapse with the exception of continuing appropriations.

General Fund expenditures may not legally exceed budgeted appropriations. Budgeted revenue amounts, as presented in the accompanying basic financial statements, represent the original budget as modified by adjustments during the year for those items which were contingent upon new or additional revenue sources. Budgeted expenditure amounts represent original appropriations adjusted for supplemental appropriations during the year. b. Excess of expenditures over appropriations
Excess of expenditures over appropriations by department in individual funds with budgets presented are as follows:

Final Budget Expenditures Excess
General Fund by Function:

Public works 1,450,542 $ 2,407,348 $ (956,806) $
Community development 4,624,585 5,065,721 (441,136)
Culture and leisure 98,418 108,555 (10,137)
Debt service:

Interest 124,306 124,466 (160)
Non-major governmental funds by function:

CSA 152
Public works 477,367 479,600 (2,233)
Air Quality Improvement
Public works 6,000 169,416 (163,416)
AB3229 COPS Program
Capital outlay 100,000 107,145 (7,145)
Special District Administration
Community development 250,221 250,445 (224)
CFD 2018-1
Community development 3,295 3,395 (100)
CFD 2017-1
Community development 3,327 3,556 (229)
CFD 2020-1
Community development - 3,198 (3,198)
Development Impact Fees
Culture and leisure 68,351 70,658 (2,307)
Capital outlay 30,000 135,819 (105,819)
Community Facilities District 2003
Public safety 3,276,895 3,469,609 (192,714)

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Packet Pg. 174 Attachment: 2022 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2022) City of San Jacinto
Notes to the Basic Financial Statements
June 30, 2022
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Note 1: Summary of significant accounting policies (continued) c. Negative fund balance and other disclosures
The following funds had negative fund balances at June 30, 2022:

Amount
Capital Projects Fund:

TUMF Capital Projects (292,420) $
Special revenue:

CSA 152 (154,855)
CDBG (412,391)
CFD #2021-1 Public Safety (2,500)
Community Facilities District 2003 (3,620,818)
Debt service:

Assessment District 87-1 (461,097)
Governmental Funds - Non-Major Funds
Governmental Funds - Major Funds
The City plans to eliminate negative fund balance in the Community Facilities District 2003 fund (currently covered by a loan from the General Fund) with increased revenues from future growth, decreased future expenditures, and paying off the loan from the General Fund. The City plans to eliminate negative fund balance in the TUMF Capital Projects fund with future cost reimbursements. The City plans to eliminate negative fund balance in the CFD #2021-1 Public Safety fund with future assessment receipts. The City plans to eliminate negative fund balance in the CSA 152 with future reimbursements from the County of Riverside. The negative fund balance in CDBG will be recovered by future grant reimbursements.

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Packet Pg. 175 Attachment: 2022 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2022) City of San Jacinto
Notes to the Basic Financial Statements
June 30, 2022
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III. DETAIL NOTES ON ALL FUNDS
Note 2: Cash and investments
Cash and investments as of June 30, 2022 are classified in the accompanying financial statements as follows:

Statement of Net Position
Governmental activities:

Cash and investments 57,126,287 $
1,000,000
Cash and investments with fiscal agents, restricted 59,877 Business-Type Activities:

Cash and investments 7,327,269
Total 65,513,433
Statement of Fiduciary Net Position:

Cash and investments 1,676,751
Cash and investments with fiscal agents 1,846,158
Total 3,522,909
Total cash and investments $ 69,036,342
Cash and investments are comprised of the following:

Demand accounts/money market account 26,295,342 $
Cash on hand 6,050
Investments 42,734,950
Total $ 69,036,342
The City follows the practice of pooling cash and investments for all funds except for funds required to be held by outside fiscal agents under the provisions of bond indentures.

Interest income earned on pooled cash and investments is allocated monthly by the City to the various funds based on the month-end cash balance. Interest income from cash and investments with fiscal agents is credited directly to the related fund.

Investments authorized by the California Government Code and the City’s investment policy The table on the following page identifies the investment types that are authorized for the City’s investment policy. The table also identifies certain provisions of the City’s investment policy that address interest rate risk, credit risk and concentration of credit risk. This table does not address investments of debt proceeds held by bond trustees that are governed by the provisions of debt agreements of the City, rather than the general provisions of the California Government Code or the City’s investment policy.

4.1.a
Packet Pg. 176 Attachment: 2022 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2022) City of San Jacinto
Notes to the Basic Financial Statements
June 30, 2022
-35-
Note 2: Cash and investments (continued)
Investments authorized by the California Government Code and the City’s investment policy, (continued)
Maximum Maximum
Investment Types Maximum Percentage Investment
Authorized by State Law Maturity Allowed* in One Issuer U.S. Treasury Obligations 5 years None None
U.S. Agency Securities 5 years None None
Commercial Paper 270 days 25% 5%
Bankers' Acceptance 180 days 40% 5%
Negotiable Certificates of Deposit 5 years 30% 5%
Non-Negotiable Certificates of Deposit 5 years 20% 5%
Certificate of Deposit Placement Service (CDARS) 5 years 30% None Collateralized Bank Deposits N/A None None
Repurchase Agreements 1 year None None
Medium-Term Corporate Notes 5 years 30% 5%
Money Market Mutual Funds N/A 20% None
Municipal Obligations 5 years 30% 5%
Mutual Funds N/A 10% None
Supranationals 5 years 30% 10%
Asset-Backed Securities 5 years 20% None
Time Deposits N/A 20% None
Local Agency Investment Fund (LAIF) N/A 70% 75,000,000 $ Riverside County Investment Fund N/A 70% None
JPA Pools N/A 50% None
California Asset Management Program N/A 50% None
*Based on state law requirements or investment policy requirements, whichever is more restrictive.

Investments authorized by debt agreements
Provisions of the debt agreements, rather than the general provisions of the California Government Code or the City’s investment policy govern investment of debt proceeds held by bond trustees. The table below identifies the investment types that are authorized for investments held by bond trustees.

The table also identifies certain provisions of these debt agreements that address interest rate risk, credit risk, and concentration of credit risk.

Maximum Maximum
Authorized Maximum Percentage Investment
Investment Type Maturity Allowed in One Issuer
U.S. Treasury Obligations None None None
U.S. Agency Securities None None None
Commercial Paper 270 days None None
Money Market Mutual Funds N/A None None
Investment Agreements None None None
Certificates of Deposit, Savings Account None None None Municipal Obligations None None None
Repurchase Agreements None None None
Local Agency Investment Fund (LAIF) None None 75,000,000 $

4.1.a
Packet Pg. 177 Attachment: 2022 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2022) City of San Jacinto
Notes to the Basic Financial Statements
June 30, 2022
-36-
Note 2: Cash and investments (continued)
Disclosures relating to interest rate risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. One of the ways that the City manages its exposure to interest rate risk is by purchasing a combination of shorter term and longer term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations.

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

Investment Type Totals 12 or Less 13 to 24 25 to 60 More than 60 Local Agency Investment Fund (LAIF) 21,220,718 $ 21,220,718 $ - $ - $ - $ U.S. Treasury Obligations 10,687,167 - 1,904,657 8,782,510 - U.S. Agency Securities 6,069,785 627,738 2,215,702 3,226,345 - Asset-Backed Securities 715,324 - 21,243 694,081 -
Medium-Term Corporate Notes 3,741,432 858,428 1,112,014 1,770,990 - Supranational Bonds 211,523 - - 211,523 -
Held by Bond Trustees:

Money Market Funds 89,001 89,001 - - -
Total 42,734,950 $ 22,795,885 $ 5,253,616 $ 14,685,449 $ - $ Remaining Maturity (In Months)
Disclosures relating to credit risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization (Standard & Poor’s). Presented below is the minimum rating required by (where applicable) the City’s investment policy or debt agreements, and the actual rating as of year-end for each investment type.

Minimum
Investment Type Totals legal rating AAA to AA- A+ to B Not rated Local Agency Investment Fund (LAIF) 21,220,718 $ N/A - $ - $ 21,220,718 $ U.S. Treasury Obligations 10,687,167 N/A 10,687,167 - - U.S. Agency Securities 6,069,785 N/A 6,069,785 - -
Asset Backed Securities 715,324 AA 370,036 - 345,287
Medium-Term Corporate Notes 3,741,432 A 1,534,155 2,207,276 - Supranational Bonds 211,523 A 211,523 - -
Held by Bond Trustees:

Money Market Funds 89,001 AAA 89,001 - -
Total 42,734,950 $ 18,961,667 $ 2,207,276 $ 21,566,005 $ Rating as of year end

4.1.a
Packet Pg. 178 Attachment: 2022 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2022) City of San Jacinto
Notes to the Basic Financial Statements
June 30, 2022
-37-
Note 2: Cash and investments (continued)
Concentration of credit risk
The investment policy of the City contains no limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code. The City had no investments in any one issuer (other than U.S. Treasury Securities, mutual funds and external investment pools) that represented 5% or more of total City investments.

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

California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150 percent of the secured public deposits, and other eligible securities as defined by Government Code Sections 53651 and 53652. As of June 30, 2022, the City held deposits with financial institutions in excess of Federal Depository Insurance Corporation (FDIC) limits. These funds were held in collateralized accounts as required by the California Government Code as stated above.

With respect to investments, custodial credit risk generally applies only to direct investments in marketable securities. Custodial credit risk does not apply to a City’s indirect investment in securities through the use of mutual funds or government investment pools, including LAIF. Pursuant to the agreement with financial institutions where certificates of deposit are held, the securities pledged are consistent with the collateral as noted in the previous paragraph held by the financial institution’s custodian but not in the City’s name.

Investment in investment pools
The City is a voluntary participant in LAIF which is regulated by the California Government Code under the oversight of the Treasurer of the State of California. The fair value of the City's investment in this pool is reported in the accompanying financial statements at amounts based upon the City's pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis.

Currently, LAIF does not have an investment rating. LAIF has a minimum $5,000 transaction amount in increments of $1,000 with a maximum of 15 transactions (combination of deposits and withdrawals) per month. LAIF requires a one-day prior notice for deposits and withdrawals of $10 million or more.

4.1.a
Packet Pg. 179 Attachment: 2022 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2022) City of San Jacinto
Notes to the Basic Financial Statements
June 30, 2022
-38-
Note 2: Cash and investments (continued)
LAIF is a governmental investment pool managed and directed by the California State Treasurer and is not registered with the Securities and Exchange Commission. An oversight committee comprised of California State officials and various participants provide oversight to the management of the fund.

The daily operations and responsibilities of LAIF fall under the auspices of the State Treasurer's office. LAIF allows a total investment of $75,000,000.

Fair value of investments
The City reports its investments at fair value, or amortized cost in the balance sheet. All investment income, including changes in the fair value of investments, is recognized, as revenue in the operating statement.

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 uses the market approach in valuing its Level 1 and Level 2 investments. The City has the following recurring fair value measurements as of June 30, 2022:

Total Level 1 Level 2 Level 3
Asset-Back Securities 715,324 $ - $ 715,324 $ - $
U.S. Agency Securities 6,069,785 - 6,069,785 -
Medium Team Corporate Notes 3,741,432 - 3,741,432 -
Supranational Bonds 211,523 - 211,523
U.S. Treasury Obligations 10,687,167 - 10,687,167 -
Total investments by fair value level 21,425,231 - $ 21,425,231 $ - $ Investments not subject to fair value measurement:

Money Market Fund 89,001
Local Agency Investment Fund (LAIF) 21,220,718
Total 42,734,950 $
Fair Value Measurement Using
Investments by Fair Value Level

4.1.a
Packet Pg. 180 Attachment: 2022 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2022) City of San Jacinto
Notes to the Basic Financial Statements
June 30, 2022
-39-
Note 3: Notes Receivable
Notes receivable Balance at
June 30, 2022
(a) In FY 2006-2007 and FY 2007-2008 the former Redevelopment Agency made a loan to a developer for a low and moderate income housing project. Amounts provided to the developer were for $1,238,225 and $1,061,775 in fiscal years 2007 and 2008, respectively. There are no annual set or structured payments. The promissory note will accrue interest at the rate of one percent per year simple interest and shall be repaid from the cash flow of the project and shall be due and payable by the expiration or termination of the affordability covenants which is 55 years from the completion of the project. The project was completed on October 2, 2008. Pursuant to AB XI 26, the Redevelopment Agency of the City of San Jacinto was dissolved and this asset was transferred to the City's Successor Housing Authority Fund. $ 2,300,000 (b) The former Redevelopment Agency operates various loan and grant programs to assist residents who meet certain qualifications for the purpose of providing home rehabilitation and home ownership assistance to low and moderate income households. The loans are secured by a deed of trust and no monthly payments are required. At the end of the 45-year term, the loans are forgiven unless the following occurs during the grant term: 1) property is sold or transferred or 2) property is no longer owner-occupied, at which time full repayment would be required. Pursuant to AB XI 26, the Redevelopment Agency of the City of San Jacinto was dissolved and this asset was transferred to the City's Successor Housing Authority Fund.

Additionally, the asset has been formally recognized on the balance sheet, whereas in the past it has only been referenced by note disclosure. 665,155 (c) In FY 2019-2020, the City loaned a local business $180,000 in accordance with its established policy of actively promoting economic development within the City. The loan accrues interest at an equivalent of the prevailing prime rate plus 2%. Provided the borrower maintains and operates during all of the term and is not in default of any of the terms of the agreement, then, in consideration of the public benefit received by the City, the total outstanding balance of the loan shall be reduced by ten percent (10%) a year during the term and the borrower shall not be required to make any payments to the City during the term, and the entire unpaid balance of the loan and accrued interest thereon shall be canceled and discharged on the loan's maturity date, which shall be ten (10) years from the date of the promissory note. 140,000
Note receivable total 3,105,155
Accrued interest on note receivable (a) above 257,275
Note receivable and accrued interest total 3,362,430 $

4.1.a
Packet Pg. 181 Attachment: 2022 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2022) City of San Jacinto
Notes to the Basic Financial Statements
June 30, 2022
-40-
Note 4: Capital assets
Capital asset activity for the year ended June 30, 2022 was as follows:

Balance at Balance at
June 30, 2021 Additions Deletions June 30, 2022
Governmental activities:

Capital assets not being depreciated:

Land 5,799,840 $ - $ - $ 5,799,840 $
Construction in progress 10,469,808 2,190,463 (4,285,458) 8,374,813 Total capital assets not
being depreciated 16,269,648 2,190,463 (4,285,458) 14,174,653 Capital assets being depreciated:

Building and system 7,104,119 112,159 - 7,216,278
Machinery and equipment 5,522,223 592,872 (104,508) 6,010,587 Improvements other than building 4,630,728 802,335 - 5,433,063 Infrastructure 195,692,834 3,483,123 - 199,175,957
Total capital assets
Being depreciated 212,949,904 4,990,489 (104,508) 217,835,885 Less accumulated depreciation for:

Building and system (2,939,353) (169,390) - (3,108,743) Machinery and equipment (4,444,000) (254,420) 104,508 (4,593,912) Improvements other than building (2,859,667) (230,630) - (3,090,297) Infrastructure (114,713,480) (4,717,368) - (119,430,848) Total accumulated depreciation (124,956,500) (5,371,808) 104,508 (130,223,800) Total capital assets being depreciated, net 87,993,404 (381,319) - 87,612,085 Governmental activities capital assets, net 104,263,052 $ 1,809,144 $ (4,285,458) $ 101,786,738 $ Business-type activities:

Capital assets not being depreciated
Land 55,222 $ - $ - $ 55,222 $
Construction in progress 17,538 30,827 - 48,365
Total capital assets not
being depreciated 72,760 30,827 - 103,587
Capital assets being depreciated:

Building and system 6,708,363 - - 6,708,363
Machinery and equipment 7,424,352 316,754 (23,234) 7,717,872 Improvements other than building 9,842,056 - - 9,842,056 Total capital assets
being depreciated 23,974,771 316,754 (23,234) 24,268,291 Less accumulated depreciation for:

Building and system (3,296,942) (133,733) - (3,430,675) Machinery and equipment (3,507,649) (440,450) 23,234 (3,924,865) Improvements other than building (5,073,113) (491,478) - (5,564,591) Total accumulated depreciation (11,877,704) (1,065,661) 23,234 (12,920,131) Total capital assets being depreciated, net 12,097,067 (748,907) - 11,348,160 Business-type activities capital assets, net 12,169,827 $ (718,080) $ - $ 11,451,747 $

4.1.a
Packet Pg. 182 Attachment: 2022 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2022) City of San Jacinto
Notes to the Basic Financial Statements
June 30, 2022
-41-
Note 4: Capital assets (continued)
Depreciation expense was charged to functions/programs of the primary government as follows:

Governmental activities:

General government $ 168,059
Public safety 186,656
Public works 4,949,922
Community development 67,171
Total depreciation expense - governmental activities 5,371,808 $ Business-type activities:

Water $ 825,465
Sewer 239,224
CCA - Power 972
Total depreciation expense - business-type activities 1,065,661 $ Note 5: Intangible assets
Intangible asset activity for the year ended June 30, 2022 was as follows:

Balance at Balance at
June 30, 2021 Additions Deletions June 30, 2022
Governmental activities:

Intangible assets, being amortized:

Intangible right to use asset - $ 548,581 $ - $ 548,581 $ Accumulated amortization - (117,526) - (117,526)
Intangible assets, net of amortization - $ 431,055 $ - $ 431,055 $ Business-type activities:

Intangible assets, being amortized:

Intangible right to use asset - $ 216,478 $ - $ 216,478 $ Accumulated amortization - (51,629) - (51,629)
Intangible assets, net of amortization - $ 164,849 $ - $ 164,849 $ Amortization expense was charged to functions/programs of the primary government as follows:

Governmental activities:

General government $ 4,574
Public safety 2,982
Public works 65,618
Community development 44,352
Total amortization expense - governmental activities 117,526 $ Business-type activities:

Water $ 43,929
Sewer 7,700
Total amortization expense - business-type activities 51,629 $

4.1.a
Packet Pg. 183 Attachment: 2022 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2022) City of San Jacinto
Notes to the Basic Financial Statements
June 30, 2022
-42-
Note 6: Long-term liabilities
a. Changes in long-term liabilities
Changes in long-term liabilities during the year ended June 30, 2022 were as follows:

Balance at Balance at Due within
June 30, 2021 Additions Deletions June 30, 2022 one year Governmental activities
Long-term debt
Direct borrowing:
2018 Street Light Financing 2,041,247 $ - $ (116,628) $ 1,924,619 $ 123,238 $ Subtotal long-term debt 2,041,247 - (116,628) 1,924,619 123,238 Other long-term liabilities
Special assessment debt with
governmental commitment - 455,000 - 455,000 -
Matured unpaid interest on special
assessment debt with government
commitment - 629,259 - 629,259 -
2014 pension obligation bonds - 72,746 (72,746) - -
Lease liabilities 548,581 307,506 (204,662) 651,425 225,574 Claims and judgment 122,213 203,597 (1,077) 324,733 -
Compensated absences 280,292 343,227 (143,816) 479,703 154,487 Subtotal other long-term liabilities 2,011,335 951,086 (422,301) 2,540,120 380,061 Total Long-term liabilities 4,052,582 $ 951,086 $ (538,929) $ 4,464,739 $ 503,299 $ Business-type activities
Long-term debt
Direct borrowing:
2013 Installment sale 294,043 $ - $ (144,996) $ 149,047 $ 147,079 $ 2015 Installment sale 3,284,686 - (134,207) 3,150,479 106,964 Subtotal long-term debt 3,578,729 - (279,203) 3,299,526 254,043 Other long-term liabilities
Lease liabilities 216,478 260,161 (128,004) 348,635 137,271 Compensated absences 77,964 78,843 (47,391) 109,416 41,994 Subtotal other long-term liabilities 338,125 295,321 (175,395) 458,051 179,265 Total Long-term liabilities 3,916,854 $ 295,321 $ (454,598) $ 3,757,577 $ 433,308 $ The General Fund typically liquidates compensated absences, claims and judgements of the Governmental Activities.
b. 2018 Streetlight Equipment Purchase Agreement - Direct Borrowing In September 2018, the City signed an equipment lease/purchase agreement with Banc of America Leasing & Capital LLC in the amount of $2,170,813. The purpose of the agreement was to provide financing to the City to assist in the acquisition, installation, retrofitting, repair, improvement, servicing and maintenance of streetlights and other capital improvements. The interest and principal are due semi-annually with payments due on December 1 and June 1 each year. Principal and interest payments will be made through December 1, 2033 with total annual amounts of $229,126, and $114,563 in the final year. The interest rate of the debt is currently

5.59%.

Repayment under the Agreement shall be absolute and unconditional, subject to annual appropriation, repayments will be made from the City's general fund plus any other legally available funds of the City.

4.1.a
Packet Pg. 184 Attachment: 2022 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2022) City of San Jacinto
Notes to the Basic Financial Statements
June 30, 2022
-43-
Note 6: Long-term liabilities (continued)
b. 2018 Streetlight Equipment Purchase Agreement - Direct Borrowing (continued) The annual debt service requirements on this debt are as follows:

Fiscal year Total
ending June 30, Principal Interest Payment
2023 123,238 $ 105,888 $ 229,126 $
2024 130,223 98,903 229,126
2025 137,605 91,521 229,126
2026 145,405 83,722 229,127
2027 153,646 75,480 229,126
2028-2032 909,166 236,465 1,145,631
2033-2034 325,336 18,353 343,689
Total 1,924,619 $ 710,332 $ 2,634,951 $
Street Light Financing
c. Special assessment debt with government commitment
$1,415,000 Assessment District 87-1 Bonds, Series 1987 A, dated March 19, 1987, were issued to finance certain improvements pursuant to the Improvement Bond Act of 1915. The payment of the bonds is secured by assessment liens upon certain lands as described in said assessment and are not direct liabilities of the City. The City may, however, from time to time, when due and delinquent, advance available funds to pay the amount of any succeeding installment of the assessment on said land and the interest thereon on the 1915 bonds. Prior to the fiscal year ended June 30, 1995, the City of San Jacinto advanced funds for said delinquencies. During the fiscal year ended June 30, 1995 the City did not advance further amounts to the reserve fund and had commenced foreclosure proceedings. The City has since settled $670,000 of the principal, due to a completed Bond Tender agreement in exchange for a portion of the parcels.

In accordance with GASB Statement No. 6 “Special Assessments,” the special assessment debt has been reflected in the accompanying financial statements at June 30, 2022 as “Special Assessment Debt with Government Commitment” in the amount of $1,084,259. This includes an amount of matured unpaid principal of $455,000. Matured unpaid interest on these bonds is also reported for interest payments due but not paid as of June 30, 2022, in the amount of $629,259.

These balances have been outstanding for several years and as such, the City has recorded the corresponding taxes receivable of $1,084,259 in addition to unavailable revenue in the same amount on the Governmental Funds Balance Sheet.
d. 2014 Pension Obligation Bonds - Governmental activities In June 2014, the City issued City of San Jacinto 2014 Taxable Pension Obligation Bond in the aggregate principal amount of $1,800,000. The City issued the bonds in order to provide funds to refinance the PERS Side Fund Obligation of the City with respect to the City’s public safety employees and to pay the costs of issuance.

The bonds are dated June 12, 2014 and mature on July 1, 2021 in the principal amount and bear interest at the interest rate of 5.00% per annum. In the event of default, the bond owner may declare any outstanding bonds, along with accrued interest, to be due and payable immediately.

The balance of the bonds was paid in full during fiscal year 2022.

4.1.a
Packet Pg. 185 Attachment: 2022 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2022) City of San Jacinto
Notes to the Basic Financial Statements
June 30, 2022
-44-
Note 6: Long-term liabilities (continued)
e. Installment Sales - Business-type activities
2013 Installment Sale - Direct Borrowing
In August 2013, the City signed an installment sale agreement with Zions Bank in the amount of $3,084,793, maturing in 10 years at an annual interest rate of 2.75%. The proceeds were used to refinance the outstanding 1997 Water Revenue Bonds and 2002 Water Revenue Bonds, in the amounts of $1,805,000 and $1,125,000, respectively, and pay costs of issuance related to the agreement. Interest was also paid in the amounts of $49,638 and $28,530, respectively. There was an optional redemption fee of $5,625 for the 2002 bonds, but nothing for the 1997 bonds. Net revenues of the City’s Water Enterprise have been pledged to the payment of the installment payments.

The annual debt service requirements to maturity for the installment sale are as follows:

Fiscal year Total
ending June 30, Principal Interest Payment
2023 147,079 $ 4,050 $ 151,129 $
2024 1,968 27 1,995
Totals 149,047 $ 4,077 $ 153,124 $
2013 Installment Sale
The City may prepay the principal component of the installment payments in whole or in part, on any date on or after October 1, 2018 by paying installment payments required to be paid on such date plus accrued interest to the date set for prepayment, with no prepayment premium.

In the event of default, installment owner may declare all principal components of the unpaid installment payments, together with accrued interest thereon at the rate of interest per annum represented by the installment sale from the immediately preceding installment payment date on which payment was made, to be immediately due and payable, whereupon the same shall immediately become due and payable.
2015 Installment Sale - Direct Borrowing
In July 2015, the City signed an installment sale agreement with Municipal Finance Corporation in the amount of $3,902,310, maturing in 20 years at an annual interest rate of 3.5%. The proceeds are to be used for the acquisition and construction of certain energy efficiency improvements to the water supply facilities of the City’s Water Enterprise. Net revenues of the City’s Water Enterprise have been pledged to the payment of the installment payments.

4.1.a
Packet Pg. 186 Attachment: 2022 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2022) City of San Jacinto
Notes to the Basic Financial Statements
June 30, 2022
-45-
Note 6: Long-term liabilities (continued)
e. Installment Sales - Business-type activities (continued) The annual debt service requirements to maturity for the installment sale are as follows:

Fiscal year Total
ending June 30, Principal Interest Payment
2023 106,964 $ 109,386 $ 216,350 $
2024 121,950 105,515 227,465
2025 138,090 101,109 239,199
2026 155,456 96,128 251,584
2027 174,131 90,529 264,660
2028-2032 1,202,772 343,549 1,546,321
2033-2036 1,251,116 91,499 1,342,615
Total 3,150,479 $ 937,715 $ 4,088,194 $
Opterra Installment Sale
The City may prepay the principal components of the installment payments in whole or in part, on any date on or after September 1, 2026 by paying the installment payment required to be paid on such date plus a prepayment price equal to the principal amount of the installment payments to be prepaid, together with 1% prepayment premium thereon. The City shall give the Corporation written notice of its intention to exercise its option not less than thirty days in advance of the date to exercise.

In the event of default, installment owner may declare all principal components of the unpaid installment payments, together with accrued interest thereon at the rate of interest per annum represented by the installment sale from the immediately preceding installment payment date on which payment was made, to be immediately due and payable, whereupon the same shall immediately become due and payable.
f. Lease Liabilities
For the year ended June 30, 2022, the financial statements include the adoption of GASB Statement No. 87, Leases. The primary objective of this statement is to enhance the relevance and consistency of information about governments' leasing activities. This statement establishes a single model for lease accounting based on the principle that leases are financings of the right to use an underlying asset. Under this Statement, a lessee is required to recognize a lease liability and an intangible right-to-use lease asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resources. For additional information, refer to the disclosures below.

Governmental activities
In June 2019, the City entered into a 60-month lease as Lessee for the use of a cleaning vehicles for the Storm Water divisions. An initial lease liability was recorded in the amount of $493,813. As of June 30, 2022, the value of the lease liability is $208,887. The City is required to make semiannual payments for a total annual amount of $109,518. The lease has an interest rate of 3.85%.

The vehicles estimated useful life was 60 months as of the contract commencement. The value of the right to use asset as of June 30, 2022 of $493,813 with accumulated depreciation of $61,727 is included with machinery and equipment in Note 4.

4.1.a
Packet Pg. 187 Attachment: 2022 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2022) City of San Jacinto
Notes to the Basic Financial Statements
June 30, 2022
-46-
Note 6: Long-term liabilities (continued)
f. Lease Liabilities (continued)
On July 1, 2021, the City entered into a 60-month lease as Lessee for the use of Vehicle - Unit # 235KPB. An initial lease liability was recorded in the amount of $16,415. As of June 30, 2022, the value of the lease liability is $11,337. The City is required to make monthly fixed payments of $546. The lease has an interest rate of 10.41%. The Vehicles estimated useful life was 60 months as of the contract commencement. The value of the right to use asset as of June 30, 2022 of $16,415 with accumulated amortization of $5,628 is included with vehicles in Note 5.

On July 1, 2021, the City entered into a 60-month lease as Lessee for the use of Vehicle - Unit # 236G9H. An initial lease liability was recorded in the amount of $32,208. As of June 30, 2022, the value of the lease liability is $23,474. The City is required to make monthly fixed payments of $926. The lease has an interest rate of 8.43%. The Vehicles estimated useful life was 60 months as of the contract commencement. The value of the right to use asset as of June 30, 2022 of $32,208 with accumulated amortization of $9,662 is included with vehicles in Note 5.

On July 1, 2021, the City entered into a 60-month lease as Lessee for the use of Vehicle - Unit # 236W56. An initial lease liability was recorded in the amount of $26,082. As of June 30, 2022, the value of the lease liability is $18,960. The City is required to make monthly fixed payments of $743. The lease has an interest rate of 7.86%. The Vehicles estimated useful life was 60 months as of the contract commencement. The value of the right to use asset as of June 30, 2022 of $26,082 with accumulated amortization of $7,824 is included with vehicles in Note 5.

On July 1, 2021, the City entered into a 60-month lease as Lessee for the use of Vehicle - Unit # 236W57. An initial lease liability was recorded in the amount of $28,881. As of June 30, 2022, the value of the lease liability is $21,033. The City is required to make monthly fixed payments of $828. The lease has an interest rate of 8.26%. The Vehicles estimated useful life was 60 months as of the contract commencement. The value of the right to use asset as of June 30, 2022 of $28,881 with accumulated amortization of $8,664 is included with vehicles in Note 5.

On July 1, 2021, the City entered into a 60-month lease as Lessee for the use of Vehicle - Unit # 2395LG. An initial lease liability was recorded in the amount of $43,479. As of June 30, 2022, the value of the lease liability is $32,206. The City is required to make monthly fixed payments of $1,325. The lease has an interest rate of 12.05%. The Vehicles estimated useful life was 60 months as of the contract commencement. The value of the right to use asset as of June 30, 2022 of $43,479 with accumulated amortization of $13,044 is included with vehicles in Note 5.

On July 1, 2021, the City entered into a 60-month lease as Lessee for the use of Vehicle - Unit # 23KZ9N. An initial lease liability was recorded in the amount of $22,495. As of June 30, 2022, the value of the lease liability is $17,431. The City is required to make monthly fixed payments of $537. The lease has an interest rate of 6.81%. The Vehicles estimated useful life was 60 months as of the contract commencement. The value of the right to use asset as of June 30, 2022 of $22,495 with accumulated amortization of $5,624 is included with vehicles in Note 5.

4.1.a
Packet Pg. 188 Attachment: 2022 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2022) City of San Jacinto
Notes to the Basic Financial Statements
June 30, 2022
-47-
Note 6: Long-term liabilities (continued)
f. Lease Liabilities (continued)
On July 1, 2021, the City entered into a 60-month lease as Lessee for the use of Vehicle - Unit # 23LP87. An initial lease liability was recorded in the amount of $41,173. As of June 30, 2022, the value of the lease liability is $33,279. The City is required to make monthly fixed payments of $796. The lease has an interest rate of 6.00%. The Vehicles estimated useful life was 60 months as of the contract commencement. The value of the right to use asset as of June 30, 2022 of $41,173 with accumulated amortization of $8,235 is included with vehicles in Note 5.

On July 1, 2021, the City entered into a 60-month lease as Lessee for the use of Vehicle - Unit # 23LP8H. An initial lease liability was recorded in the amount of $44,897. As of June 30, 2022, the value of the lease liability is $36,247. The City is required to make monthly fixed payments of $779. The lease has an interest rate of 1.58%. The Vehicles estimated useful life was 60 months as of the contract commencement. The value of the right to use asset as of June 30, 2022 of $44,897 with accumulated amortization of $8,979 is included with vehicles in Note 5.

On July 1, 2021, the City entered into a 60-month lease as Lessee for the use of Vehicle - Unit # 23LP8J. An initial lease liability was recorded in the amount of $31,095. As of June 30, 2022, the value of the lease liability is $25,154. The City is required to make monthly fixed payments of $639. The lease has an interest rate of 6.10%. The Vehicles estimated useful life was 60 months as of the contract commencement. The value of the right to use asset as of June 30, 2022 of $31,095 with accumulated amortization of $6,663 is included with vehicles in Note 5.

On July 1, 2021, the City entered into a 60-month lease as Lessee for the use of Vehicle - Unit # 23LP8L. An initial lease liability was recorded in the amount of $33,098. As of June 30, 2022, the value of the lease liability is $27,087. The City is required to make monthly fixed payments of $668. The lease has an interest rate of 6.61%. The Vehicles estimated useful life was 60 months as of the contract commencement. The value of the right to use asset as of June 30, 2022 of $33,098 with accumulated amortization of $6,848 is included with vehicles in Note 5.

On July 1, 2021, the City entered into a 60-month lease as Lessee for the use of Vehicle - Unit # 23LP8P. An initial lease liability was recorded in the amount of $38,936. As of June 30, 2022, the value of the lease liability is $31,965. The City is required to make monthly fixed payments of $765. The lease has an interest rate of 6.22%. The Vehicles estimated useful life was 60 months as of the contract commencement. The value of the right to use asset as of June 30, 2022 of $38,936 with accumulated amortization of $7,919 is included with vehicles in Note 5.

On July 1, 2021, the City entered into a 60-month lease as Lessee for the use of Vehicle - Unit # 23M5MR. An initial lease liability was recorded in the amount of $24,533. As of June 30, 2022, the value of the lease liability is $19,498. The City is required to make monthly fixed payments of $524. The lease has an interest rate of 5.62%. The Vehicles estimated useful life was 60 months as of the contract commencement. The value of the right to use asset as of June 30, 2022 of $24,533 with accumulated amortization of $5,555 is included with vehicles in Note 5.

4.1.a
Packet Pg. 189 Attachment: 2022 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2022) City of San Jacinto
Notes to the Basic Financial Statements
June 30, 2022
-48-
Note 6: Long-term liabilities (continued)
f. Lease Liabilities (continued)
On July 1, 2021, the City entered into a 60-month lease as Lessee for the use of Vehicle - Unit # 23M5MZ. An initial lease liability was recorded in the amount of $24,533. As of June 30, 2022, the value of the lease liability is $19,498. The City is required to make monthly fixed payments of $524. The lease has an interest rate of 5.62%. The Vehicles estimated useful life was 60 months as of the contract commencement. The value of the right to use asset as of June 30, 2022 of $24,533 with accumulated amortization of $5,555 is included with vehicles in Note 5.

On July 1, 2021, the City entered into a 60-month lease as Lessee for the use of Vehicle - Unit # 23M5SW. An initial lease liability was recorded in the amount of $33,257. As of June 30, 2022, the value of the lease liability is $27,366. The City is required to make monthly fixed payments of $665. The lease has an interest rate of 6.85%. The Vehicles estimated useful life was 60 months as of the contract commencement. The value of the right to use asset as of June 30, 2022 of $33,257 with accumulated amortization of $6,764 is included with vehicles in Note 5.

On July 1, 2021, the City entered into a 60-month lease as Lessee for the use of Vehicle - Unit # 23MNB9. An initial lease liability was recorded in the amount of $19,820. As of June 30, 2022, the value of the lease liability is $15,611. The City is required to make monthly fixed payments of $424. The lease has an interest rate of 4.89%. The Vehicles estimated useful life was 60 months as of the contract commencement. The value of the right to use asset as of June 30, 2022 of $19,820 with accumulated amortization of $4,574 is included with vehicles in Note 5.

On January 1, 2022, the City entered into a 60-month lease as Lessee for the use of Vehicle - Unit # 2572H4. An initial lease liability was recorded in the amount of $30,055. As of June 30, 2022, the value of the lease liability is $27,577. The City is required to make monthly fixed payments of $583. The lease has an interest rate of 6.14%. The Vehicles estimated useful life was 60 months as of the contract commencement. The value of the right to use asset as of June 30, 2022 of $30,055 with accumulated amortization of $3,006 is included with vehicles in Note 5.

On June 1, 2022, the City entered into a 60-month lease as Lessee for the use of Vehicle - Unit # 2572JH. An initial lease liability was recorded in the amount of $27,296. As of June 30, 2022, the value of the lease liability is $26,785. The City is required to make monthly fixed payments of $560. The lease has an interest rate of 8.47%. The Vehicles estimated useful life was 60 months as of the contract commencement. The value of the right to use asset as of June 30, 2022 of $27,296 with accumulated amortization of $455 is included with vehicles in Note 5.

On February 1, 2022, the City entered into a 60-month lease as Lessee for the use of Vehicle - Unit # 2572PM. An initial lease liability was recorded in the amount of $30,328. As of June 30, 2022, the value of the lease liability is $28,030. The City is required to make monthly fixed payments of $596. The lease has an interest rate of 6.66%. The Vehicles estimated useful life was 60 months as of the contract commencement. The value of the right to use asset as of June 30, 2022 of $30,328 with accumulated amortization of $2,527 is included with vehicles in Note 5.

4.1.a
Packet Pg. 190 Attachment: 2022 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2022) City of San Jacinto
Notes to the Basic Financial Statements
June 30, 2022
-49-
Note 6: Long-term liabilities (continued)
f. Lease Liabilities (continued)
Future payments on the governmental lease liabilities are as follows:

Fiscal year Total
ending June 30, Principal Interest Payment
2023 225,574 $ 33,085 $ 258,659 $
2024 238,151 19,961 258,112
2025 103,787 8,217 112,004
2026 70,710 2,953 73,663
2027 13,203 388 13,591
Total 651,425 $ 64,604 $ 716,029 $
Lease liabilities
Business-type activities – Water Fund
In June 2019, the City entered into a 60-month lease as Lessee for the use of a cleaning vehicles for the Wastewater division. An initial lease liability was recorded in the amount of $417,782. As of June 30, 2022, the value of the lease liability is $176,726. The City is required to make semiannual payments for a total annual amount of $92,656. The lease has an interest rate of 3.85%.

The vehicles estimated useful life was 60 months as of the contract commencement. The value of the vehicle as of June 30, 2022 of $492,782 with accumulated depreciation of $169,394 is included with machinery and equipment in Note 4.

On July 1, 2021, the City entered into a 60-month lease as Lessee for the use of Vehicle - Unit # 235KKK. An initial lease liability was recorded in the amount of $25,667. As of June 30, 2022, the value of the lease liability is $18,675. The City is required to make monthly fixed payments of $734. The lease has an interest rate of 8.06%. The Vehicles estimated useful life was 60 months as of the contract commencement. The value of the right to use asset as of June 30, 2022 of $25,667 with accumulated amortization of $7,700 is included with vehicles in Note 5.

On July 1, 2021, the City entered into a 60-month lease as Lessee for the use of Vehicle - Unit # 234XXF. An initial lease liability was recorded in the amount of $20,459. As of June 30, 2022, the value of the lease liability is $14,921. The City is required to make monthly fixed payments of $590. The lease has an interest rate of 8.58%. The Vehicles estimated useful life was 60 months as of the contract commencement. The value of the right to use asset as of June 30, 2022 of $20,459 with accumulated amortization of $6,138 is included with vehicles in Note 5.

On July 1, 2021, the City entered into a 60-month lease as Lessee for the use of Vehicle - Unit # 23HWKP. An initial lease liability was recorded in the amount of $22,453. As of June 30, 2022, the value of the lease liability is $17,125. The City is required to make monthly fixed payments of $553. The lease has an interest rate of 6.54%. The Vehicles estimated useful life was 60 months as of the contract commencement. The value of the right to use asset as of June 30, 2022 of $22,453 with accumulated amortization of $5,857 is included with vehicles in Note 5.

On July 1, 2021, the City entered into a 60-month lease as Lessee for the use of Vehicle - Unit # 23J9RM. An initial lease liability was recorded in the amount of $81,679. As of June 30, 2022, the value of the lease liability is $67,228. The City is required to make monthly fixed payments of $1,981. The lease has an interest rate of 12.39%. The Vehicles estimated useful life was 60 months as of the contract commencement. The value of the right to use asset as of June 30, 2022 of $81,679 with accumulated amortization of $18,151 is included with vehicles in Note 5.

4.1.a
Packet Pg. 191 Attachment: 2022 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2022) City of San Jacinto
Notes to the Basic Financial Statements
June 30, 2022
-50-
Note 6: Long-term liabilities (continued)
f. Lease Liabilities (continued)
On October 1, 2021, the City entered into a 60-month lease as Lessee for the use of Vehicle - Unit # 256JX4. An initial lease liability was recorded in the amount of $40,554. As of June 30, 2022, the value of the lease liability is $35,286. The City is required to make monthly fixed payments of $809. The lease has an interest rate of 7.30%. The Vehicles estimated useful life was 60 months as of the contract commencement. The value of the right to use asset as of June 30, 2022 of $40,554 with accumulated amortization of $6,083 is included with vehicles in Note 5.

Business-type activities – Wastewater Fund
On July 1, 2021, the City entered into a 60-month lease as Lessee for the use of Vehicle - Unit # 234XCZ. An initial lease liability was recorded in the amount of $25,666. As of June 30, 2022, the value of the lease liability is $18,674. The City is required to make monthly fixed payments of $734. The lease has an interest rate of 8.06%. The Vehicles estimated useful life was 60 months as of the contract commencement. The value of the right to use asset as of June 30, 2022 of $25,666 with accumulated amortization of $7,700 is included with vehicles in Note 5.

Future payments on the business-type lease liabilities are as follows:

Fiscal year Total
ending June 30, Principal Interest Payment
2023 137,271 $ 20,191 $ 157,462 $
2024 145,532 11,929 157,461
2025 42,909 4,331 47,240
2026 20,639 952 21,591
2027 2,284 27 2,311
Total 348,635 $ 37,430 $ 386,065 $
Lease liabilities
g. Debt issued without government commitment
Refinancing of $17,841,416 Community Facilities District No. 2001-2 Special Tax Bonds In March 2016, $17,975,000 City of San Jacinto Community Facilities District No. 2001-1 (Rancho San Jacinto, Phase 2) 2016 Special Tax Refunding bonds were issued by the San Jacinto Financing Authority for the purpose of refunding the $17,841,416 San Jacinto Financing Authority 2002 Local Agency Revenue Bonds, Series A. The balance at June 30, 2022 is $14,655,000.

All bonds represent special limited obligations of the City, payable solely from special taxes levied CFD No. 2002-1, as applicable, and are not an obligation of the General Fund of the City of San Jacinto. The City has covenanted to annually levy the special tax and, in the event of any delinquency in payment to the City of the special tax, the City may order action to foreclose on any property liens.

4.1.a
Packet Pg. 192 Attachment: 2022 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2022) City of San Jacinto
Notes to the Basic Financial Statements
June 30, 2022
-51-
Note 7: Short-term/long-term interfund borrowings
Interfund transactions - Due to/due from other funds
Individual fund interfund receivable and payable balances at June 30, 2022 were as follows:

Receivable Fund
General
Payable Fund Fund
TUMF Capital Projects 292,420 $
Non-Major Governmental Funds 1,042,826
Power Fund 2,842,105
Total 4,177,351 $
The interfund payables represent temporary loans to cover negative cash balances.

Interfund transactions - Advances
Individual fund interfund advances to and from balances at June 30, 2022 were as follows:

Payable Fund General Fund LLPD#2
TUMF Capital
Projects
Non-Major
Governmental
Funds Totals
City Capital Projects Fund 4,110,276 $ 155,000 $ - $ 4,272,838 $ 8,538,114 $ Non-Major Governmental Funds - 2,450,904 - 2,450,904
Total 6,561,180 $ 155,000 $ - $ 4,272,838 $ 10,989,018 $ Receivable Fund
Advances between the City Capital Projects Fund and other City funds are for cash advanced to the City Capital Projects Fund for expected project costs. Also, see Note 1.

The General Fund has advanced cash to the Community Facilities District 2003 Fund to cover costs.

Note 8: Transfers in and out
Individual fund transfers in and transfers out activity as of June 30, 2022 were as follows:

Non-Major Internal
General TUMF Capital Governmental Water Service
Transfers-In Fund Projects Funds Fund Funds Totals
General Fund - $ - $ 432,319 $ - $ 111,574 $ 543,893 $
City Capital Projects Fund 939,763 283,494 3,216,185 51,098 - 4,490,540 Non-Major Governmental Funds - - 153,463 - - 153,463
Internal Service Funds 24,580 - - - - 24,580
Total 964,343 $ 283,494 $ 3,801,967 $ 51,098 $ 111,574 $ 5,212,476 $ Transfers-Out
 Transfers to the General Fund from non-major governmental funds represent reimbursement for costs of public safety and grant reimbursement costs.  Transfers to the City Capital Projects Fund from all other City funds are to fund various capital projects of the City. Also, see Note 1.
 Transfers between non-major governmental funds are to pay for operational costs, as directed by City Council.
 Transfers to Internal Service Funds from the General Fund are to reimburse costs of replacement equipment.

4.1.a
Packet Pg. 193 Attachment: 2022 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2022) City of San Jacinto
Notes to the Basic Financial Statements
June 30, 2022
-52-
Note 9: Defined benefit pension plan
A. General information about the pension plan
Plan description
All qualified permanent and probationary employees are eligible to participate in the 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 sponsors four rate plans (three miscellaneous and one safety). 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 full-time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 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.

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

Miscellaneous Plan
On or after
Hire date
Prior to
January 1, 2011
January 1, 2011
and prior to
January 1, 2013
On or after
January 1, 2013
Benefit formula 2.7% @ 55 2% @ 55 2.0% @ 62
Benefit vesting schedule 5 years of service 5 years of service 5 years of service Benefit payments monthly for life monthly for life monthly for life Retirement age 50-58 & up 50-67 & up 52-67 & up
Monthly benefits, as a % of eligible compensation 2.0%-2.7% 1.426%-2.418% 1.0%-2.5% Required employee contribution rates 8.000% 7.000% 6.750% Required employer contribution rates 14.020% 10.880% 7.590% Miscellaneous

4.1.a
Packet Pg. 194 Attachment: 2022 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2022) City of San Jacinto
Notes to the Basic Financial Statements
June 30, 2022
-53-
Note 9: Defined benefit pension plan (continued)
A. General information about the pension plan (continued) Safety Plan
Hire date
Police Fire Police Fire
Benefit formula 2.0% @ 50 2.0% @ 55 2.7% @ 55 2.7% @ 55 Benefit vesting schedule 5 years of service 5 years of service 5 years of service 5 years of service Benefit payments monthly for life monthly for life monthly for life monthly for life Retirement age 50 50 50-57 50-57
Monthly benefits, as a % of eligible compensation 2%-2.7% 1.426%-2% 2.0% to 2.7% 2.0% to 2.7% Required employee contribution rates $44,325 Monthly $44,325 Monthly $39,945 Monthly $39,945 Monthly On or after
Safety-Inactive
Prior to
Contributions
Section 20814(c) of the California Public Employees’ Retirement Law (PERL) requires that the employer contribution rates for all public employers are 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. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The 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, 2022 were $1,736,584. The actual employer payments of $1,597,244 made to CalPERS by the City during the measurement period ended June 30, 2021 differed from the City’s proportionate share of the employer’s contributions of $1,017,942 by $117,068, which is being amortized over the expected average remaining service lifetime in the Public Agency Cost-Sharing Multiple Employer Plan.

B. 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 of the Plan is measured as of June 30, 2021, using an annual actuarial valuation as of June 30, 2020 rolled forward to June 30, 2021 using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is as follows.

4.1.a
Packet Pg. 195 Attachment: 2022 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2022) City of San Jacinto
Notes to the Basic Financial Statements
June 30, 2022
-54-
Note 9: Defined benefit pension plan (continued)
B. Net pension liability (continued)
Actuarial methods and assumptions used to determine total pension liability 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
Valuation Date June 30, 2020
Measurement Date June 30, 2021
Actuarial Cost Method Entry Age Normal
Asset Valuation Method Market Value of Assets
Actuarial Assumptions:

Discount Rate 7.15%
Inflation 2.50%
Salary Increases Varies by Entry Age and Service
Investment Rate of Return 7.15%
Mortality Rate Table (1) Derived using CALPERS' membership data for all funds Post Retirement Benefit Increase
(1) The mortality table used was developed based on CalPERS’ specific data. The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre-retirement and Post-retirement mortality rates include 15 years of projected mortality improvement using 90% of Scale MP-2016 published by the Society of Actuaries.

For more details on this table, please refer to the CalPERS Experience Study and Review of Actuarial Assumptions report from December 2017 that can be found on the CalPERS website.

Contract COLA up to 2.50% until purchasing power protection allowance on purchasing power applies; 2.5% thereafter
Long-term Expected Rate of Return
The long-term expected rate of return on pension plan investments was determined using a buildingblock method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.

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

4.1.a
Packet Pg. 196 Attachment: 2022 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2022) City of San Jacinto
Notes to the Basic Financial Statements
June 30, 2022
-55-
Note 9: Defined benefit pension plan (continued)
B. Net pension liability (continued)
The expected real rates of return by asset class are as follows:

Asset Class1
New Strategic
Allocation
Real Return
Years 1 - 102
Real Return
Years 11+3
Global Equity 50.0% 4.80% 5.98%
Fixed Income 28.0% 1.00% 2.62%
Inflation Assets 0.0% 0.77% 1.81%
Private Equity 8.0% 6.30% 7.23%
Real Assets 13.0% 3.75% 4.93%
Liquidity 1.0% 0.00% (0.92%)
Total 100%
2 An expected inflation of 2.00% used for this period
3 An expected inflation of 2.92% used for this period
1 In the System's ACFR, fixed income is included in global debt securities; liquidity is included in short-term investments; inflation assets are included in both global equity securities and global debt securities.

Change of Assumptions
There were no change of assumptions for measurement date June 30, 2021.

Discount rate
The discount rate used to measure the total pension liability for PERF C was 7.15%. 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.

4.1.a
Packet Pg. 197 Attachment: 2022 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2022) City of San Jacinto
Notes to the Basic Financial Statements
June 30, 2022
-56-
Note 9: Defined benefit pension plan (continued)
B. Net pension liability (continued)
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.

C. Proportionate share of net pension liability
The following table shows the Plan’s proportionate share of the net pension liability over the measurement period.

Plan Total Pension
Liability (a)
Plan Fiduciary Net
Position (b)
Plan Net Pension Liability
(c ) = (a) - (b)
Balance at: 6/30/2020 (VD) 46,341,516 $ 33,404,212 $ 12,937,304 $ Balance at: 6/30/2021 (MD) 48,438,104 40,720,607 7,717,497 Net changes during 2020-21 2,096,588 $ 7,316,395 $ (5,219,807) $ Valuation Date (VD), Measurement Date (MD)
Increase (Decrease)
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.

4.1.a
Packet Pg. 198 Attachment: 2022 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2022) City of San Jacinto
Notes to the Basic Financial Statements
June 30, 2022
-57-
Note 9: Defined benefit pension plan (continued)
C. Proportionate share of net pension liability (continued) The Local Government’s proportionate share of the net pension liability for the total Plan as of the June 30, 2020 and 2021 measurement dates was as follows:

Miscellaneous Safety Total
Proportion - June 30, 2021 0.17953% 0.08052% 0.11890%
Proportion - June 30, 2022 0.22695% 0.09711% 0.17270%
Change - Increase (Decrease) 0.04742% 0.01659% 0.23790% 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 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:

Miscellaneous
Plan's Net Pension Liability 8,295,480 $ 4,309,406 $ 1,014,176 $ Safety
Plan's Net Pension Liability 3,408,091 5,864,381 1,390,522 Total 14,159,861 $ 7,717,497 $ 2,404,698 $
Discount Rate - 1% (6.15%)
Current Discount Rate
(7.15%)
Discount Rate + 1%
(8.15%)
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
projected and actual earnings
on pension plan investments
5 year straight-line amortization
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).

4.1.a
Packet Pg. 199 Attachment: 2022 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2022) City of San Jacinto
Notes to the Basic Financial Statements
June 30, 2022
-58-
Note 9: Defined benefit pension plan (continued)
C. Proportionate share of net pension liability (continued) The EARSL for PERF C for the measurement period ending June 30, 2021 is 3.7 years, which was obtained by dividing the total service years of 561,622 (the sum of remaining service lifetimes of the active employees) by 150,648 (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.

D. Pension expense and deferred outflows and deferred inflows of resources related to pensions
As of the start of the measurement period (July 1, 2020), the City’s net pension liability was $12,937,304. For the measurement period ending June 30, 2021 (the measurement date), the Local Government incurred a pension expense of $2,327,557.

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

Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between expected and actual experience 1,065,523 $ - $ Changes of assumptions - -
Differences between projected and actual investment
earnings - 5,790,353
Differences between employer's contributions and
proportionate share of contributions 137,405 410,653
Change in employer's proportion 29,097 178,237
Pension contributions subsequent to measurement date 1,736,584 - $ 6,379,243 2,968,609 $
The amounts above are net of outflows and inflows recognized in the 2020-21 measurement period expense. Contributions subsequent to the measurement date of $1,736,584 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:

Fiscal Year
Ending June 30: Miscellaneous Safety Total
2023 (664,666) $ (413,390) $ (1,078,056) $
2024 (727,266) (423,108) (1,150,374)
2025 (840,994) (479,998) (1,320,992)
2026 (1,039,591) (558,205) (1,597,796)
2027 - - -
Thereafter - - -
E. Payable to the pension plan
At June 30, 2022, the City reported a payable of $0 for the outstanding amount of contributions to the pension plan required for the year ended June 30, 2022.

4.1.a
Packet Pg. 200 Attachment: 2022 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2022) City of San Jacinto
Notes to the Basic Financial Statements
June 30, 2022
-59-
IV. OTHER DISCLOSURES
Note 10: Risk management
The City adopted a self-insured workers’ compensation program which is administered by a service agent. The City is self-insured for the first $250,000 on each claim. Insurance coverage in excess of the self-insured amount is provided by Public Entity Risk Management Authority (PERMA) up to statutory limits for workers’ compensation.

Effective July 1, 2002, the City elected to reduce self-insured liability claim coverage from $125,000 to $50,000 on each general liability claim against the City. The insurance coverage in excess of the selfinsured amount is provided by PERMA up to a limit of $50,000,000.

Claims, expenditures and liabilities are reported when it is probable that a loss has occurred and the amount of that loss can be reasonably estimated. These losses include an estimate of claims that have been incurred but not reported. At June 30, 2022, the amount of these liabilities was $324,733.

This amount represents an estimate of $203,597 for reported claims through June 30, 2022. These claims are recorded as claims payable in the Workers’ Compensation Fund and Liability Insurance Fund. This liability is the City’s best estimate based on available information. Changes in the reported liability are as follows:

Change in
Liability at Claim Liability at
Year Beginning of Year Payable End of Year
2019-2020 174,119 $ (9,052) $ 165,067 $
2020-2021 165,067 38,530 203,597
2021-2022 203,597 121,136 324,733
Effective July 1, 1986 the City became a member of PERMA, a public entity risk pool, currently operating as a common risk management and insurance program for 20 California cities and 10 Special District/Agencies. The City pays an annual premium to the pool for its excess general liability insurance coverage. The agreement for formation of PERMA provides that the pool will be selfsustaining through member premiums. The City continues to carry commercial companies for all other risks of loss, including property insurance, earthquake and flood, auto physical damage insurance and TULIP/special events insurance.

PERMA has published its own financial report for the year ended June 30, 2022, which can be obtained from their website, www.permarisk.gov.

4.1.a
Packet Pg. 201 Attachment: 2022 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2022) City of San Jacinto
Notes to the Basic Financial Statements
June 30, 2022
-60-
Note 11: Commitments and contingencies
a. Construction commitments
The City has entered into various commitments for construction and/or capital projects. As of June 30, 2022, the City had outstanding contracts commitments of $2,664,914. b. Grants
Amounts received or receivable from grant agencies are subject to audit and adjustment by grantor agencies, principally the federal government. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amount, if any, of expenditures which may be disallowed by the grantor cannot be determined at this time although the City expects such amounts, if any, to be immaterial.
c. Other
The City is involved as a defendant in various legal proceedings. While it is not feasible to predict or determine the outcome in these cases, it is the opinion of the City that the outcome of the majority of these cases will have no material adverse effect on the financial position of the City.

Note 12: Fund balance reservations/designations
The City’s Government Fund balances are detailed below:

General LLPD#2
City Capital
Projects
TUMF Capital
Projects
Non-Major
Governmental
Funds
Total
Governmental
Funds
Nonspendable:

Prepaids/Inventory 158,547 $ - $ - $ - $ - $ 158,547 $
Advances receivable 6,561,180 155,000 - - - 6,716,180
Land held for resale - - - - 342,927 342,927
Total nonspendable 6,719,727 155,000 - - 342,927 7,217,654 Restricted:

Advances receivable - - - - - -
Other government restrictions 59,877 8,806,312 - - 20,242,636 29,108,825 Total restricted 59,877 8,806,312 - - 20,242,636 29,108,825 Assigned: - - - - 1,569,097 1,569,097
Unassigned: 12,290,884 - - (292,420) (4,651,661) 7,346,803 Total fund balances 19,070,488 $ 8,961,312 $ - $ (292,420) $ 17,502,999 $ 45,242,379 $ The City has established a minimum fund balance policy for the General Fund Contingency Reserve.

The City Council stipulates that the Contingency Reserve must be a minimum of 15 percent of the upcoming fiscal year's General Fund annual budgeted operating expenditures. At fiscal year-end the Reserve for Contingency balance was $4,186,876, 15 percent of fiscal year June 30, 2022 budgeted General Fund operating expenditures. This reserve has been reported as unassigned in the General Fund.

4.1.a
Packet Pg. 202 Attachment: 2022 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2022) City of San Jacinto
Notes to the Basic Financial Statements
June 30, 2022
-61-
Note 13: Dissolution of California Redevelopment Agencies On December 29, 2011, the California Supreme Court upheld Assembly Bill X1 26 (Bill) that provides for the dissolution of all redevelopment agencies in the State of California. Most cities in California had established a redevelopment agency that was included in the reporting entity of the City as a blended component unit (since the City council, in many cases, also served as the governing board for those agencies).

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.

In accordance with the provisions of ABX 1 26 (Bill) and the California Supreme Court’s decision to uphold the Bill, the obligations of the former redevelopment agency became vested with the funds established for the successor agency upon the date of dissolution, February 1, 2012. Former tax increment revenues pledged to fund the debts of the former redevelopment agency will be distributed to the Successor Agency subject to the reapportionment of such revenues as provided by the Bill.

The debt of the Successor Agency as of June 30, 2022 is as follows:

Balance at Balance at Due within
June 30, 2021 Additions Deletions June 30, 2022 one year Successor agency
Bonds payable:
2005 Tax Allocation Bonds 5,920,000 $ - $ (310,000) $ 5,610,000 $ 325,000 $ Total long-term liabilities 5,920,000 $ - $ (310,000) $ 5,610,000 $ 325,000 $ Future debt service requirements for the bonds payable are as follows:

Fiscal year Total
ending June 30, Principal Interest Payment
2023 325,000 $ 249,727 $ 574,727 $
2024 340,000 234,765 574,765
2025 355,000 219,128 574,128
2026 370,000 202,630 572,630
2027 390,000 185,150 575,150
2028-2032 2,225,000 634,225 2,859,225
2033-2035 1,605,000 112,745 1,717,745
Totals 5,610,000 $ 1,838,370 $ 7,448,370 $
2005 Tax Allocation Bonds
Note 14: Risks and uncertainties
Successor Agency
Deductions (expenses) incurred by the Successor Agency for the year ended June 30, 2022 (and subsequent years in which the Successor Agency is in operation) are subject to review by various State agencies and the County in which the Successor Agency resides. If any expenses incurred by the Successor Agency are disallowed by the State agencies or County, the City, acting as the Successor Agency could be liable for the repayment of the disallowed costs from either its own funds or by the State withholding remittances normally paid to the City. The amount, if any, of expenses that may be disallowed by the State agencies or County cannot be determined at this time, although the Successor Agency expects such amounts, if any, to be immaterial.

4.1.a
Packet Pg. 203 Attachment: 2022 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2022) Required Supplementary Information

4.1.a
Packet Pg. 204 Attachment: 2022 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2022) This page left intentionally blank

4.1.a
Packet Pg. 205 Attachment: 2022 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2022) City of San Jacinto
Required Supplementary Information
Budgetary Comparison Schedule - General Fund
For the Year Ended June 30, 2022
-62-
Actual Variance with
Original Final Amounts Final Budget

REVENUES
Taxes 13,520,110 $ 13,520,110 $ 17,677,288 $ 4,157,178 $ Licenses and permits 1,381,350 1,381,350 2,397,150 1,015,800 Fines and forfeitures 160,000 160,000 319,687 159,687
Development fees 150,000 150,000 514,169 364,169
Intergovernmental 6,089,795 17,904,329 5,298,721 (12,605,608) Charges for services 1,782,000 1,782,000 4,270,237 2,488,237 Investment earnings 210,000 210,000 (1,447,393) (1,657,393) Other/Overhead Allocations 4,075,316 4,075,316 3,716,921 (358,395) Total revenues 27,368,571 39,183,105 32,746,780 (6,436,325)

EXPENDITURES
Current:

General government 3,193,502 3,193,502 2,874,920 318,582 Public safety 16,796,122 16,796,122 15,427,761 1,368,361 Public works 1,450,542 1,450,542 2,407,348 (956,806)
Community development 4,248,085 4,624,585 5,065,721 (441,136) Culture and leisure 98,418 98,418 108,555 (10,137)
Capital outlay 854,000 1,202,684 1,013,331 189,353
Debt service:

Principal 287,993 287,993 287,993 -
Interest 124,306 124,306 124,466 (160)
Total expenditures 27,052,968 27,778,152 27,310,095 468,057 Excess (deficiency) of revenues
over (under) expenditures 11,404,953 315,603 5,436,685 (5,968,268)

OTHER FINANCING SOURCES (USES)
Proceeds from the sale of property 30,000 30,000 47,695 17,695 Proceeds from loan - - 548,581 548,581
Transfers in 1,623,225 1,623,225 543,893 (1,079,332)
Transfers out (2,867,285) (14,172,491) (964,343) 13,208,148 Total other financing sources (uses) (1,214,060) (12,519,266) 175,826 12,695,092 Net change in fund balance (898,457) (1,114,313) 5,612,511 6,726,824 Fund balance, beginning of year 13,457,977 13,457,977 13,457,977 - Fund balance, end of year $ 12,343,664 12,559,520 $ 19,070,488 $ 6,726,824 $ Budgeted Amounts

4.1.a
Packet Pg. 206 Attachment: 2022 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2022) City of San Jacinto
Required Supplementary Information
Budgetary Comparison Schedule – LLPD #2
For the Year Ended June 30, 2022
-63-
Actual Variance with
Original Final Amounts Final Budget

REVENUES
Assessments 4,601,265 $ 4,601,265 $ 4,595,318 $ (5,947) $ Development fees 4,000 4,000 - (4,000)
Investment earnings 115,000 115,000 53,953 (61,047)
Total revenues 4,720,265 4,720,265 4,649,271 (70,994)

EXPENDITURES
Community development 4,637,938 4,637,938 3,916,778 721,160 Total expenditures 4,637,938 4,637,938 3,916,778 721,160 Excess (deficiency) of revenues
over (under) expenditures 82,327 82,327 732,493 650,166

OTHER FINANCING SOURCES (USES)
Transfers in - 155,000 - (155,000)
(155,000) - - 155,000
Total other financing sources (uses) - - - -
Net change in fund balance 82,327 82,327 732,493 650,166 Fund balance (deficit), beginning of year 8,228,819 8,228,819 8,228,819 - Fund balance, end of year 8,311,146 $ 8,311,146 $ 8,961,312 $ 650,166 $ Budgeted Amounts

4.1.a
Packet Pg. 207 Attachment: 2022 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2022) City of San Jacinto
Required Supplementary Information
Schedule of the City's Proportionate Share of the Plan's Net Pension Liability and Related Ratios as of the Measurement Date - Last 10 Years* For the Year Ended June 30, 2022
-64-
Measurement
Date
Employer's
Proportion of
the Collective
Net Pension
Liability1
Employer's
Proportionate
Share of the
Collective Net
Pension Liability
Employer's
Covered Payroll
Employer's
Proportionate
Share of the
Collective Net
Pension Liability
as a percentage
of the Employer's
Covered Payroll
Pension Plan's
Fiduciary Net
Position as a
percentage of the
Total Pension
Liability
Miscellaneous Plan
6/30/2014 0.18099% 4,473,080 $ 3,036,159 $ 147% 76.82%
6/30/2015 0.19300% 5,294,972 2,908,424 182% 73.75%
6/30/2016 0.18182% 6,316,067 2,317,063 273% 70.82%
6/30/2017 0.17913% 7,061,261 2,804,241 252% 69.75%
6/30/2018 0.18044% 6,800,330 3,119,387 218% 72.25%
6/30/2019 0.17949% 7,187,759 3,810,207 189% 73.22%
6/30/2020 0.17953% 7,572,634 4,262,727 178% 73.34%
6/30/2021 0.22695% 4,309,406 4,603,445 94% 85.73%
Safety Plan (Inactive)
6/30/2014 0.07000% 2,516,462 $ - $ - 0.00%
6/30/2015 0.07447% 3,068,587 - - 80.89%
6/30/2016 0.07781% 4,030,026 - - 75.83%
6/30/2017 0.07720% 4,613,123 - - 74.46%
6/30/2018 0.07932% 4,654,165 - - 74.14%
6/30/2019 0.07983% 4,983,113 - - 71.97%
6/30/2020 0.08052% 5,364,670 - - 70.10%
6/30/2021 0.09711% 3,408,091 - - 81.32%
1 Proportion of the collective net pension liability represents the plan's proportion of PERF C, which includes both the Miscellaneous and Safety Risk Pools excluding the 1959 Survivors Risk Pool. * Measurement date 6/30/2014 (fiscal year 2015) was the first year of implementation. Additional years will be presented as information becomes available.

4.1.a
Packet Pg. 208 Attachment: 2022 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2022) City of San Jacinto
Required Supplementary Information
Schedule of Plan Contributions - Last 10 Years*
For the Year Ended June 30, 2022
-65-
Fiscal Year
Actuarially
Determined
Contribution
Contributions in
Relation to the
Actuarially
Determined
Contribution
Contribution
Deficiency
(Excess) Covered payroll
Contributions
as a
percentage of
covered
payroll
Miscellaneous Plan
6/30/2015 640,721 $ (640,721) $ - $ 2,908,424 $ 22.03%
6/30/2016 613,674 (613,674) - 2,317,063 26.48%
6/30/2017 691,841 (691,841) - 2,804,241 24.67%
6/30/2018 738,923 (738,923) - 3,119,387 23.69%
6/30/2019 876,180 (876,180) - 3,810,207 23.00%
6/30/2020 1,012,917 (1,012,917) - 4,262,727 23.76%
6/30/2021 1,135,010 (1,135,010) - 4,603,445 24.66%
6/30/2022 1,260,063 (1,260,063) - 5,068,470 24.86%
Safety Plan (Inactive)
6/30/2015 138,527 $ (138,527) $ - $ - $ 0.00%
6/30/2016 146,311 (146,311) - - -
6/30/2017 175,023 (175,023) - - -
6/30/2018 219,078 (219,078) - - -
6/30/2019 283,052 (283,052) - - -
6/30/2020 416,795 (416,795) - - -
6/30/2021 462,234 (462,234) - - -
6/30/2022 476,521 (476,521) - - -
* Measurement date 6/30/2014 (fiscal year 2015) was the first year of implementation. Additional years will be presented as information becomes available.

Notes to Schedule:

Changes in Assumptions: There were no assumption changes for 2021. For 2020, the Plan adopted a new amortization policy effective with the 2019 actuarial valuation. The new amortization policy shortens the period over which actuarial gains and losses are amortized from 30 years to 20 years with the payments computed as a level dollar amount. In addition, the new policy does not utilize a five-year ramp-up and ramp-down on UAL bases attributable to assumption changes and non-investment gains/losses. The new policy also does not utilize a five-year ramp-down on investment gains/losses. These changes apply only to new UAL bases established on or after June 30, 2019. There were no changes in assumptions in 2019. In 2018, demographic assumptions and inflation rate were changed in accordance with the CalPERS Experience Study and Review of Actuarial Assumptions December 2017.

There were no changes in the discount rate in 2019. In 2017, the accounting discount rate was reduced from 7.65 percent to 7.15 percent. In 2016, there were no changes in the discount rate. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense). In 2014, amounts reported were based on the 7.5 percent discount rate.

Changes in Benefit Terms: There were no changes to benefit terms that applied to all members of the Public Agency Pool. Additionally, the figures above do not include any liability impact that may have resulted from Golden Handshakes that occurred after the June 30, 2020 valuation date, unless the liability impact is deemed to be material to the Public Agency Pool.

4.1.a
Packet Pg. 209 Attachment: 2022 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2022) Non-Major Governmental Funds

4.1.a
Packet Pg. 210 Attachment: 2022 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2022) City of San Jacinto
Combining Balance Sheet – Non-Major Governmental Funds
June 30, 2022
-66-
Gas Tax Measure A Traffic Safety
CFD #2003-2
Sewer Lift
Operations
ASSETS
Cash and investments 1,001 $ 1,290 $ 54,586 $ - $
Receivables, net:

Accounts - - - -
Interest - - - -
Taxes and assessments - - - -
Notes - - - -
Prepaids - - 3,120 -
Due from other governments 134,206 363,279 5,049 -
Advances receivable - 1,132,320 55,200 -
Land held for resale - - - -
Total assets 135,207 $ 1,496,889 $ 117,955 $ - $

LIABILITIES
Accounts payable - $ - $ 3,730 $ - $
Accrued payroll - - - -
Due to other governments - - - -
Due to other funds - - - -
Unearned revenue - - - -
Advances payable - - - -
Total liabilities - - 3,730 -

DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - 118,835 - -

FUND BALANCES
Nonspendable - - 3,120 -
Restricted 135,207 1,378,054 111,105 -
Assigned - - - -
Unassigned - - - -
Total fund balances (deficit) 135,207 1,378,054 114,225 - Total liabilities, deferred inflows
of resources and fund balances 135,207 $ 1,496,889 $ 117,955 $ - $ Special Revenue Funds

4.1.a
Packet Pg. 211 Attachment: 2022 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2022) Continued
-67-
LLPD #1
Park
Development
Parkway
Development CSA 152
State Asset
Seizure
Public Safety
Sales Tax
$ 33,599 285,943 $ 18,067 $ 250 $ 114,987 $ - $
- 584 - 56,561 - -
- - - - - -
- 22,245 - - - -
- - - - - -
- - - - - -
- - - 203,888 - 37,985
- - - - - -
- - - - - -
$ 33,599 308,772 $ 18,067 $ 260,699 $ 114,987 $ 37,985 $ $ - 65,338 $ - $ 10,435 $ - $ - $
- - - - - -
- - - - - -
- - - 201,231 - -
- - - - - -
- - - - - -
- 65,338 - 211,666 - -
- 10,375 - 203,888 - -
- - - - - -
33,599 233,059 18,067 - 114,987 37,985
- - - - - -
- - - (154,855) - -
33,599 233,059 18,067 (154,855) 114,987 37,985
$ 33,599 308,772 $ 18,067 $ 260,699 $ 114,987 $ 37,985 $ Special Revenue Funds

4.1.a
Packet Pg. 212 Attachment: 2022 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2022) City of San Jacinto
Combining Balance Sheet – Non-Major Governmental Funds
June 30, 2022
-68-
Air Quality
Improvement
AB3229 COPS
Program Fire Mitigation AB1600
ASSETS
Cash and investments 78,750 $ 30,091 $ 671,401 $ 499,415 $ Receivables, net:

Accounts - - - -
Interest - - - -
Taxes and assessments - - - -
Notes - - - -
Prepaids - - - -
Due from other governments 16,862 65,271 - -
Advances receivable - - - -
Land held for resale - - - -
Total assets 95,612 $ 95,362 $ 671,401 $ 499,415 $

LIABILITIES
Accounts payable - $ 9,712 $ - $ - $
Accrued payroll - - - -
Due to other governments - - - -
Due to other funds - - - -
Unearned revenue - 16,667 - -
Advances payable - - - -
Total liabilities - 26,379 - -

DEFERRED INFLOWS OF RESOURCES
Unavailable revenue 16,862 65,271 - -

FUND BALANCES
Nonspendable - - - -
Restricted 78,750 3,712 671,401 499,415
Assigned - - - -
Unassigned - - - -
Total fund balances (deficit) 78,750 3,712 671,401 499,415 Total liabilities, deferred inflows
of resources and fund balances 95,612 $ 95,362 $ 671,401 $ 499,415 $ Special Revenue Funds

4.1.a
Packet Pg. 213 Attachment: 2022 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2022) Continued
-69-
Special District
Administration
Federal Asset
Seizure
Vandalism &
Graffiti Reward RMRA CDBG CFD 2018-1
$ 35,791 164,817 $ 40,553 $ 1,996,278 $ - $ 9,459 $
- - 39,412 - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - 189,671 109,735 -
- - - 723,662 - -
- - - - - -
$ 35,791 164,817 $ 79,965 $ 2,909,611 $ 109,735 $ 9,459 $ $ - 3,807 $ - $ - $ - $ - $
- 4,705 - - - -
- - - - - -
- - - - 522,126 -
- - - - - -
- - - - - -
- 8,512 - - 522,126 -
- - 39,412 - - -
- - - - - -
35,791 156,305 40,553 2,909,611 - 9,459
- - - - - -
- - - - (412,391) -
35,791 156,305 40,553 2,909,611 (412,391) 9,459
$ 35,791 164,817 $ 79,965 $ 2,909,611 $ 109,735 $ 9,459 $ Special Revenue Funds

4.1.a
Packet Pg. 214 Attachment: 2022 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2022) City of San Jacinto
Combining Balance Sheet – Non-Major Governmental Funds
June 30, 2022
-70-
CFD 2017-1 CFD 2020-1
CFD #2021-1
Public Safety
Development
Impact Fees
ASSETS
Cash and investments 42,564 $ 7,125 $ - $ 3,360,154 $
Receivables, net:

Accounts - - - -
Interest - - - -
Taxes and assessments 61 - - -
Notes - - - -
Prepaids - - - -
Due from other governments - - - -
Advances receivable - - - 1,049,712
Land held for resale - - - -
Total assets 42,625 $ 7,125 $ - $ 4,409,866 $

LIABILITIES
Accounts payable - $ 12 $ - $ - $
Accrued payroll - - - -
Due to other governments - - - -
Due to other funds - - 2,500 -
Unearned revenue - - - -
Advances payable - - - -
Total liabilities - 12 2,500 -

DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - - - -

FUND BALANCES
Nonspendable - - - -
Restricted 42,625 7,113 - 4,409,866
Assigned - - - -
Unassigned - - (2,500) -
Total fund balances (deficit) 42,625 7,113 (2,500) 4,409,866 Total liabilities, deferred inflows
of resources and fund balances 42,625 $ 7,125 $ - $ 4,409,866 $ Special Revenue Funds

4.1.a
Packet Pg. 215 Attachment: 2022 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2022) Continued
-71-
Community
Facilities
District 2003
Successor
Housing
Authority
Assessment
District 2003-
01 Total Special
Revenue
Funds
Underground
Utility
Flood
Control
$ 228,510 1,446 $ 7,887,707 $ 15,563,784 $ 1,288,713 $ - $ - - - 96,557 - -
257,275 - - 257,275 - -
- 47,346 16,495 86,147 - -
2,965,155 - - 2,965,155 - -
- - - 3,120 - -
- - - 1,125,946 - -
- - - 2,960,894 - 1,185,842
339,807 - - 339,807 - -
$ 3,790,747 48,792 $ 7,904,202 $ 23,398,685 $ 1,288,713 $ 1,185,842 $ $ 2,582 1,218,706 $ - $ 1,314,322 $ - $ - $
- - - 4,705 - -
- - - - - -
- - - 725,857 - -
- - - 16,667 - -
- 2,450,904 - 2,450,904 - -
2,582 3,669,610 - 4,512,455 - -
3,222,430 - - 3,677,073 - -
339,807 - - 342,927 - -
225,928 - 7,904,202 19,056,794 - 1,185,842
- - - - 1,288,713 -
- (3,620,818) - (4,190,564) - -
565,735 (3,620,818) 7,904,202 15,209,157 1,288,713 1,185,842 $ 3,790,747 48,792 $ 7,904,202 $ 23,398,685 $ 1,288,713 $ 1,185,842 $ Special Revenue Funds Capital Projects Funds

4.1.a
Packet Pg. 216 Attachment: 2022 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2022) This page left intentionally blank

4.1.a
Packet Pg. 217 Attachment: 2022 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2022) City of San Jacinto
Combining Balance Sheet – Non-Major Governmental Funds
June 30, 2022
-72-
Debt Service
Traffic
Signalization
Highway 79
Capital
Projects
Total Capital
Projects Funds
Assessment
District 87-1
Debt Service
Total NonMajor
Governmental
Funds
ASSETS
Cash and investments 154,282 $ - $ 1,442,995 $ - $ 17,006,779 $ Receivables, net:

Accounts - - - - 96,557
Interest - - - - 257,275
Taxes and assessments - - - 1,084,259 1,170,406
Notes - - - - 2,965,155
Prepaids - - - - 3,120
Due from other governments - - - - 1,125,946
Advances receivable - 126,102 1,311,944 - 4,272,838
Land held for resale - - - - 339,807
Total assets 154,282 $ 126,102 $ 2,754,939 $ 1,084,259 $ 27,237,883 $

LIABILITIES
Accounts payable - $ - $ - $ - $ 1,314,322 $
Accrued payroll - - - - 4,705
Due to other governments - - - 144,128 144,128
Due to other funds - - - 316,969 1,042,826
Unearned revenue - - - - 16,667
Advances payable - - - - 2,450,904
Total liabilities - - - 461,097 4,973,552

DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - - - 1,084,259 4,761,332

FUND BALANCES
Nonspendable - - - - 342,927
Restricted - - 1,185,842 - 20,242,636
Assigned 154,282 126,102 1,569,097 - 1,569,097
Unassigned - - - (461,097) (4,651,661)
Total fund balances (deficit) 154,282 126,102 2,754,939 (461,097) 17,502,999 Total liabilities, deferred inflows
of resources and fund balances 154,282 $ 126,102 $ 2,754,939 $ 1,084,259 $ 27,237,883 $ Capital Projects Funds

4.1.a
Packet Pg. 218 Attachment: 2022 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2022) City of San Jacinto
Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Non-Major Funds
For the Year Ended June 30, 2022
-73-
Gas Tax Measure A
Traffic
Safety
CFD #2003-2
Sewer Lift
Operations

REVENUES
Taxes - $ - $ - $ - $
Assessments - - - 20,666
Fines and forfeitures - - 65,713 -
Development fees - - - -
Intergovernmental 1,217,312 1,316,711 - -
Investment earnings 161 12,327 - 17
Other/overhead allocations - - - -
Total revenues 1,217,473 1,329,038 65,713 20,683

EXPENDITURES
Current:

General government - - - -
Public safety - - 46,043 -
Public works 1,120,691 62,000 10,444 20,883
Community development - - - -
Culture and leisure - - - -
Capital outlay - - - -
Debt service:

Interest - - - -
Total expenditures 1,120,691 62,000 56,487 20,883
Excess (deficiency) of revenues
over (under) expenditures 96,782 1,267,038 9,226 (200)

OTHER FINANCING SOURCES (USES)
Transfers in - - - -
Transfers out - (1,798,001) - -
Total other financing sources (uses) - (1,798,001) - -
Net change in fund balances 96,782 (530,963) 9,226 (200) Fund balances (deficit), beginning of year 1,909,017 38,425 104,999 200 Fund balances (deficit), end of year 135,207 $ 1,378,054 $ 114,225 $ - $ Special Revenue Funds

4.1.a
Packet Pg. 219 Attachment: 2022 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2022) Continued
-74-
LLPD #1
Park
Development
Parkway
Development CSA 152
State Asset
Seizure
Public Safety
Sales Tax
$ - - $ - $ - $ - $ 438,516 $
- 658,062 - - - -
- - - 429,174 - -
- - - - - -
- - - - - -
230 - 135 - 786 -
- - - - - -
230 658,062 135 429,174 786 438,516
- 2,864 - - - -
- - - - - -
- - - 479,600 - -
- - - - - -
- 531,818 3,364 - - -
- - - - - -
- - - - - -
- 534,682 3,364 479,600 - -
230 123,380 (3,229) (50,426) 786 438,516
- - - - - -
- - - (153,463) - (432,319)
- - - (153,463) - (432,319)
230 123,380 (3,229) (203,889) 786 6,197
33,369 109,679 21,296 49,034 114,201 31,788
$ 33,599 233,059 $ 18,067 $ (154,855) $ 114,987 $ 37,985 $ Special Revenue Funds

4.1.a
Packet Pg. 220 Attachment: 2022 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2022) City of San Jacinto
Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Non-Major Funds
For the Year Ended June 30, 2022
-75-
Air Quality
Improvement
AB3229 COPS
Program Fire Mitigation AB1600

REVENUES
Taxes - $ - $ - $ - $
Assessments - - - -
Fines and forfeitures - - - -
Development fees - - - 3,330
Intergovernmental 48,860 161,285 - -
Investment earnings 1,283 302 4,593 3,440
Other/overhead allocations - - - -
Total revenues 50,143 161,587 4,593 6,770

EXPENDITURES
Current:

General government - - - -
Public safety - 50,750 - -
Public works 169,416 - - 11,246
Community development 913 - - -
Culture and leisure - - - -
Capital outlay - 107,145 - -
Debt service:

Interest - - - -
Total expenditures 170,329 157,895 - 11,246
Excess (deficiency) of revenues
over (under) expenditures (120,186) 3,692 4,593 (4,476)

OTHER FINANCING SOURCES (USES)
Transfers in - - - -
Transfers out - - - (80)
Total other financing sources (uses) - - - (80)
Net change in fund balances (120,186) 3,692 4,593 (4,556) Fund balances (deficit), beginning of year 20 198,936 666,808 503,971 Fund balances (deficit), end of year $ 3,712 78,750 $ 671,401 $ 499,415 $ Special Revenue Funds

4.1.a
Packet Pg. 221 Attachment: 2022 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2022) Continued
-76-
Special District
Administration
Federal Asset
Seizure
Vandalism &
Graffiti Reward RMRA CDBG CFD 2018-1
$ - - $ - $ - $ - $ - $
- - - - - 3,295
- - - - - -
- 82,000 - - - -
- - - 1,049,599 152,743 -
245 - - 17,184 - 56
- 240,872 - - - -
245 322,872 - 1,066,783 152,743 3,351
- - - - - -
- - - - - -
- - - - - -
- 250,445 - - - 3,395
- - - - - -
- - - - - -
- - - - - -
- 250,445 - - - 3,395
245 72,427 - 1,066,783 152,743 (44)
- - - - - -
- - - (395,290) (565,134) -
- - - (395,290) (565,134) -
245 72,427 - 671,493 (412,391) (44)
35,546 83,878 40,553 2,238,118 - 9,503
$ 35,791 156,305 $ 40,553 $ 2,909,611 $ (412,391) $ 9,459 $ Special Revenue Funds

4.1.a
Packet Pg. 222 Attachment: 2022 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2022) City of San Jacinto
Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Non-Major Funds
For the Year Ended June 30, 2022
-77-
CFD 2017-1 CFD 2020-1
CFD #2021-1
Public Safety
Development
Impact Fees

REVENUES
Taxes - $ - $ - $ - $
Assessments 3,302 9,590 - -
Fines and forfeitures - - - -
Development fees - - - 1,108,575
Intergovernmental - - - -
Investment earnings 283 10 - 26,103
Other/overhead allocations - - - -
Total revenues 3,585 9,600 - 1,134,678

EXPENDITURES
Current:

General government - - - -
Public safety - - - -
Public works - - - 19,388
Community development 3,556 3,198 - -
Culture and leisure - - - 70,658
Capital outlay - - - 135,819
Debt service:

Interest - - - -
Total expenditures 3,556 3,198 - 225,865
Excess (deficiency) of revenues
over (under) expenditures 29 6,402 - 908,813

OTHER FINANCING SOURCES (USES)
Transfers in - - - -
Transfers out - - - (136,853)
Total other financing sources (uses) - - - (136,853)
Net change in fund balances 29 6,402 - 771,960
Fund balances (deficit), beginning of year 42,596 711 (2,500) 3,637,906 Fund balances (deficit), end of year 42,625 $ 7,113 $ (2,500) $ 4,409,866 $ Special Revenue Funds

4.1.a
Packet Pg. 223 Attachment: 2022 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2022) Continued
-78-
Community
Facilities
District 2003
Successor
Housing
Authority
Assessment
District
2003-01
Total Special
Revenue Funds
Underground
Utility Flood Control
$ - - $ - $ 438,516 $ - $ - $
- 3,049,151 1,071,236 4,815,302 - -
- - - 494,887 - -
- - - 1,193,905 110,000 298,770
- - - 3,946,510 - -
1,590 - 47,833 116,578 8,466 7,610
- - - 240,872 - -
1,590 3,049,151 1,119,069 11,246,570 118,466 306,380
7,280 13,618 - 23,762 - -
- 3,469,609 - 3,566,402 - -
- - 38,768 1,932,436 - 2,852
- - - 261,507 - -
- - - 605,840 - -
- 41,718 - 284,682 - -
- 10,712 - 10,712 - -
7,280 3,535,657 38,768 6,685,341 - 2,852
(5,690) (486,506) 1,080,301 4,561,229 118,466 303,528
- 153,463 - 153,463 - -
- - - (3,481,140) - (273,845)
- 153,463 - (3,327,677) - (273,845)
(5,690) (333,043) 1,080,301 1,233,552 118,466 29,683
571,425 (3,287,775) 6,823,901 13,975,605 1,170,247 1,156,159 $ 565,735 (3,620,818) $ 7,904,202 $ 15,209,157 $ 1,288,713 $ 1,185,842 $ Special Revenue Funds Capital Projects Funds

4.1.a
Packet Pg. 224 Attachment: 2022 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2022) City of San Jacinto
Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Non-Major Funds
For the Year Ended June 30, 2022
-79-
Debt Service
Traffic
Signalization
Highway 79
Capital
Projects
Total Capital
Projects Funds
Assessment
District 87-1
Debt Service
Total Non-Major
Governmental
Funds

REVENUES
Taxes - $ - $ - $ - $ 438,516 $
Assessments - - - - 4,815,302
Fines and forfeitures - - - - 494,887
Development fees - - 408,770 - 1,602,675
Intergovernmental - - - - 3,946,510
Investment earnings 1,071 - 17,147 - 133,725
Other/overhead allocations - - - - 240,872
Total revenues 1,071 - 425,917 - 11,672,487

EXPENDITURES
Current:

General government - - - 2,050 25,812
Public safety - - - - 3,566,402
Public works 4,790 - 7,642 - 1,940,078
Community development - - - - 261,507
Culture and leisure - - - - 605,840
Capital outlay - - - - 284,682
Debt service:

Interest - - - - 10,712
Total expenditures 4,790 - 7,642 2,050 6,695,033
Excess (deficiency) of revenues
over (under) expenditures (3,719) - 418,275 (2,050) 4,977,454

OTHER FINANCING SOURCES (USES)
Transfers in - - - - 153,463
Transfers out - (46,982) (320,827) - (3,801,967)
Total other financing sources (uses) - (46,982) (320,827) - (3,648,504) Net change in fund balances (3,719) (46,982) 97,448 (2,050) 1,328,950 Fund balances (deficit), beginning of year 158,001 173,084 2,657,491 (459,047) 16,174,049 Fund balances (deficit), end of year 154,282 $ 126,102 $ 2,754,939 $ (461,097) $ 17,502,999 $ Capital Projects Funds

4.1.a
Packet Pg. 225 Attachment: 2022 Financial Statements (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2022) March 16, 2023
To the Honorable City Council
City of San Jacinto
We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of San Jacinto (the City) as of for the year ended June 30, 2022. Professional standards require that we advise you of the following matters relating to our audit.

Our Responsibility in Relation to the Financial Statement Audit As communicated in our engagement letter dated May 25, 2022, our responsibility, as described by professional standards, is to form and express an opinion about whether the financial statements that have been prepared by management with your oversight are presented fairly, in all material respects, in accordance with accounting principles generally accepted in the United States of America and Government Auditing Standards. Our audit of the financial statements does not relieve you or management of your respective responsibilities.

Our responsibility, as prescribed by professional standards, is to plan and perform our audit to obtain reasonable, rather than absolute, assurance about whether the financial statements are free of material misstatement. An audit of financial statements includes consideration of internal control over financial reporting as a basis for designing 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 over financial reporting. Accordingly, as part of our audit, we considered the internal control of the City solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control.

We are also responsible for communicating significant matters related to the audit that are, in our professional judgment, relevant to your responsibilities in overseeing the financial reporting process. However, we are not required to design procedures for the purpose of identifying other matters to communicate to you.

Compliance with All Ethics Requirements Regarding Independence The engagement team, others in our firm, as appropriate, and our firm have complied with all relevant ethical requirements regarding independence.

4.1.b
Packet Pg. 226 Attachment: SAS 114 (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2022) The Honorable City Council
City of San Jacinto Page 2
Significant Risks Identified
We have identified the following significant risks:

Management's override of internal controls over financial reporting – Management override of internal controls is the intervention by management in handling financial information and making decisions contrary to internal control policy.

Revenue recognition – Revenue recognition is a generally accepted accounting principle that refers to the conditions under which an entity can recognize a transaction as revenue. Auditing standards indicate that recognizing revenue is a presumed fraud risk and usually classified as a significant risk in most audits.

These significant risks are presumptive in most audits and merit attention by the auditors due to the direct impact over financial reporting and internal control processes. Although identified as significant risks, we noted no matters of management override of controls or deviations from generally accepted accounting principles which caused us to modify our audit procedures or any related matters which are required to be communicated to those charged with governance due to these identified risks.

Qualitative Aspects of the City’s Significant Accounting Practices Significant Accounting Policies
Management has the responsibility to select and use appropriate accounting policies. A summary of the significant accounting policies adopted by the City is included in Note 1 to the financial statements. As described in Note 1 to the financial statements, during the year, the City changed its method of accounting for Fiduciary Activities by adopting Governmental Accounting Standards Board (GASB) Statement No. 87, Leases. No matters have come to our attention that would require us, under professional standards, to inform you about (1) the methods used to account for significant unusual transactions and (2) the effect of significant accounting policies if controversial or emerging areas for which there is a lack of authoritative guidance or consensus.

Significant Accounting Estimates
Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s knowledge and experience about past and current events, and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ markedly of management’s current judgments.

The most sensitive accounting estimates affecting the City’s financial statements are:

Management’s estimate of fair market value of investments based on market values provided by outside sources. We evaluated the key factors and assumptions used to develop the fair market value of investments in determining that it is reasonable in relation to the financial statements taken as a whole.

Management’s estimate of depreciation expense is based on the useful lives of acquired assets.

We evaluated the key factors and assumptions used to develop depreciation expense in determining that it is reasonable in relation to the financial statements taken as a whole.

4.1.b
Packet Pg. 227 Attachment: SAS 114 (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2022) The Honorable City Council
City of San Jacinto Page 3
Management’s estimate of claims payable is based on claims loss reports from third party claims management companies. We evaluated the key factors and assumptions used to develop the claims payable estimate in determining that is reasonable in relation to the financial statements taken as a whole.

The estimate of the net pension liability and the related deferred amounts is based on actuarial reports provided by independent actuaries. We evaluated the key factors and assumptions used to develop the estimate in determining that it is reasonable in relation to the statements taken as a whole.

Management’s estimate of lease liabilities, right-to-use assets, and asset amortization is based on present value calculations using certain terms and assumptions in the lease agreements and estimated useful lives of assets in accordance with generally accepted accounting principles. We evaluated the key factors and assumptions used to develop the lease related estimates in determining that it is reasonable in relation to the financial statements taken as a whole.

Financial Statement Disclosures
Certain financial statement disclosures involve significant judgment and are particularly sensitive because of their significance to financial statement users. The most sensitive disclosures affecting the City’s financial statements relate to:

The disclosure of the fair value of investments in the notes to the financial statements represents amounts susceptible to market fluctuations.

The disclosure of capital assets, net, in the basic financial statements is based on historical information which could differ from actual useful lives of each capitalized item.

The disclosure of net pension liability and related deferred amounts in the notes to the financial statements is based on actuarial assumptions. Actual future liabilities may vary from disclosed estimates.

The disclosure of claims payable in the basic financial statements is based on claims loss reports from third party claims management companies. Actual future liabilities may vary from disclosed estimates.

The disclosure of leases liabilities, right-to-use assets, and asset amortization in the basic financial statements is based on certain terms and assumptions in the lease agreements which could differ from actual amounts.

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

Significant Difficulties Encountered during the Audit
We encountered no significant difficulties in dealing with management relating to the performance of the audit.

4.1.b
Packet Pg. 228 Attachment: SAS 114 (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2022) The Honorable City Council
City of San Jacinto Page 4
Uncorrected and Corrected Misstatements
For purposes of this communication, professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that we believe are trivial, and communicate them to the appropriate level of management. Further, professional standards require us to also communicate the effect of uncorrected misstatements related to prior periods on the relevant classes of transactions, account balances or disclosures, and the financial statements as a whole and each applicable opinion unit. Management has corrected all material misstatements that were uncorrected by management that we believe are not trivial.

In addition, professional standards require us to communicate to you all material, corrected misstatements that were brought to the attention of management as a result of our audit procedures.

There were no corrected misstatements that we deemed material brought to the attention of management as a result of our audit procedures.

Disagreements with Management
For purposes of this letter, professional standards define a disagreement with management as a matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing matter, which could be significant to the City’s financial statements or the auditor’s report.

No such disagreements arose during the course of the audit.

Representations Requested from Management
We have requested certain written representations from management, which are included in the attached letter dated March 16, 2023.

Management’s Consultations with Other Accountants
In some cases, management may decide to consult with other accountants about auditing and accounting matters. Management informed us that, and to our knowledge, there were no consultations with other accountants regarding auditing and accounting matters.

Other Significant Matters, Findings, or Issues
In the normal course of our professional association with the City, we generally discuss a variety of matters, including the application of accounting principles and auditing standards, significant events or transactions that occurred during the year, operating and regulatory conditions affecting the City, and operational plans and strategies that may affect the risks of material misstatement. None of the matters discussed resulted in a condition to our retention as the City’s auditors.

Other Information Included in Annual Reports
Our responsibility also includes communicating to you any information which we believe is a material misstatement of fact. Nothing came to our attention that caused us to believe that such information, or its manner of presentation, is materially inconsistent with the information, or manner of its presentation, appearing in the financial statements.

4.1.b
Packet Pg. 229 Attachment: SAS 114 (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2022) The Honorable City Council
City of San Jacinto Page 5
This report is intended solely for the information and use of the City Council and management of the City and is not intended to be and should not be used by anyone other than these specified parties.

Very truly yours,
March 16, 2023

4.1.b
Packet Pg. 230 Attachment: SAS 114 (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2022)

4.1.b
Packet Pg. 231
Attachment: SAS 114 (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2022)

4.1.b
Packet Pg. 232
Attachment: SAS 114 (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2022)

4.1.b
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Attachment: SAS 114 (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2022)

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Attachment: SAS 114 (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2022) -1-

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
Independent Auditor's Report
To the Honorable City Council
City of San Jacinto, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of City of San Jacinto (the City), as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated March 16, 2023.

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

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

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Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses.

However, material weaknesses may exist that have not been identified.

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

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

San Bernardino, California
March 16, 2023

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Packet Pg. 241 Attachment: GAS Report (Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year Ended June 30, 2022) March 21, 2023
TO: City Council
REQUESTED BY: Tom Prill, Deputy City Manager
APPROVED BY: Robert A. Johnson, City Manager
SUBJECT: Approval Related to the San Jacinto Power Choice Solar and Battery Residential Program
RECOMMENDATION:

Staff recommends that the City Council grant to the City Manager, or his designees, the authority to execute all contracts and make any non-substantive changes, related to the San Jacinto Power Choice Solar and Battery Residential Program.

DISCUSSION:

On November 17, 2016, City Council adopted Ordinance No. 16-12, Establishing the San Jacinto Community Choice Aggregation (CCA) program, San Jacinto Power (SJP). SJP has been successfully serving customers since 2018. In addition to providing renewable energy at competitive prices to our customers, SJP intends to offer customer programs to not only support the renewable energy goals of the state by leveraging innovation and cutting-edge technologies, but also to enhance grid stability and create new meaningful benefits for our residents.

The Power Choice Solar and Battery Residential Program was developed by CalChoice member Lancaster Energy, Participate Energy, and Tesla to support new home developers in meeting their Title 24 requirements, and all homeowners, with a zero up-front cost option to install solar and batteries for energy savings, back-up power, and potentially to participate in grid services.

The program successfully launched in the City of Lancaster in October of 2022, and as a CalChoice member, SJP has an opportunity to implement this program in our community based on the established program agreements. The Framework Agreement related to the program provides details on the structure of the agreement between the City, Participate Energy, and Tesla, and lays out the responsibilities of each party.

Homeowners and Developers will be able to order systems from Tesla, which will in turn design, permit, and install solar and batteries on new residential development, and/or on existing residential homes. Participate Energy will finance the program, and own the solar and battery systems. Participate Energy will also contract with Tesla to provide ongoing operations and maintenance throughout the twenty-five-year duration of the agreement. The city will assist with marketing the program to developers and existing residents. The city will also enter into the Power Purchase Agreement (PPA) with Participate Energy to purchase the energy that is created from the behind-the-meter solar and battery systems, while in parallel selling energy and battery services to the homeowners as part of the City and CCA retail offer.

The CCA Customer Agreement with SJP customers is proposed at $0.145 per kWh with a 1.9%

4.2 Packet Pg. 242
annual escalator for solar and $115.00 per month for each battery. Customers can acquire additional Powerwalls at a cost of $75.00 per month. The proposed wholesale PPA rate from Participate Energy to the City is $0.145 per kWh with a 1.9% escalator.

Developers and homeowners that are interested in participating in the program will find program information on SJP’s website and will add basic home information to a fillable form on the site.

Once the form is completed, information will be sent directly to Tesla, who will then follow up with the customer. Tesla will also enable ordering direct from the Tesla.com website. Tesla will be responsible for all installation-related work, including permitting systems through the City.

The City will earn revenues in two forms. First, a $0.40 per watt up-front fee for each system developed and deployed through the program, equating to approximately $3,000,000 for every 1,000 homes deployed with a standard 7,600 watt and one (1) Powerwall configuration. The city will also receive a program support service fee of $0.02 per kWh generated, and $15.00 per month for each Powerwall installed, which equates to an estimated $21,000,000 over the life of the program for each 1,000 residential customers.

Homeowners and Developers that participate in the program will enjoy a host of benefits. The benefits include easy access to solar financing and installation, comprehensive integration with the existing CCA service, access to backup power in the event of an emergency or Public Safety Power Shutoff, and of course, substantial savings on electric bills. One of the unique benefits of this structure is that all residents qualify; there is no consumer credit check. Often, these types of programs are only available to those with the best credit scores. This program will allow all residents access to energy savings and resiliency. In addition, a significant portion of their expenditures will remain local and be reinvested in our community.

Based on the foregoing, staff recommends that the City Council grant to the City Manager, or his designees, the authority to execute all contracts, and with the approval of the City Attorney, make any non-substantive changes, related to the San Jacinto Power Choice Solar and Battery Residential Program.

FISCAL IMPACT:

In connection with the required development services, San Jacinto shall be paid a fee during the construction phase of $0.40 per watt developed. Additionally, the city will receive a nominal operating service fee of $0.02 per kilowatt-hour (kWh) generated, and $15.00 per month for each Powerwall installed over the life of the program, an estimated $21,000,000.00 over the next 25 years. The expenses of the program will be determined by how much staff time is involved in participating in the program. However, it is anticipated that the additional revenue will far exceed the additional expenses.

ATTACHMENTS:

SJP Power Choice Program Presentation 2023 0321_FINAL
Master PPA - Council meeting attachment
Program Management Agreement - Council meeting attachment Program Support Service Agreement - Council meeting attachment CCA Framework Program Agreement - Council meeting attachment

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Tripartite NDA - Council meeting attachment

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RESIDENTIAL SOLAR / ENERGY STORAGE PROGRAM

POWER PURCHASE AND SALE AGREEMENT

BETWEEN

CITY OF SAN JACINTO, A CALIFORNIA MUNICIPAL CORPORATION,

D/B/A SAN JACINTO POWER
AND
PARTICIPATE.ENERGY LLC

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Packet Pg. 245 Attachment: Master PPA - Council meeting attachment (Approval Related to the San Jacinto Power Choice Solar and Battery Residential i
Table of Contents
Page
ARTICLE 1 DEFINITIONS........................................................................................................... 1

1.1 Contract Definitions................................................................................................ 1

1.2 Rules of Interpretation ............................................................................................ 8 ARTICLE 2 SYSTEMS, COMMERCIAL OPERATION, FORECASTING ............................... 9

2.1 Systems................................................................................................................... 9

2.2 Commercial Operation............................................................................................ 9

2.3 Forecasting.............................................................................................................. 9 ARTICLE 3 TERM....................................................................................................................... 10

3.1 Contract Term....................................................................................................... 10

3.2 Contract Term Extension ...................................................................................... 10

3.3 Survival of Contract Provisions............................................................................ 10 ARTICLE 4 PURCHASE AND SALE........................................................................................ 10

4.1 Sale of Product...................................................................................................... 10

4.2 Sale of Green Attributes........................................................................................ 10

4.3 Compensation ....................................................................................................... 10

4.4 Ownership of Renewable Energy Incentives........................................................ 11

4.5 Future Environmental Attributes. ......................................................................... 11

4.6 Sale of Energy to Customers................................................................................. 12 ARTICLE 5 OBLIGATIONS AND DELIVERIES..................................................................... 12

5.1 Delivery................................................................................................................. 12

5.2 Title and Risk of Loss. .......................................................................................... 12 ARTICLE 6 TAXES..................................................................................................................... 12

6.1 Allocation of Taxes and Charges.......................................................................... 12

6.2 Cooperation........................................................................................................... 13 ARTICLE 7 MAINTENANCE OF SYSTEMS ........................................................................... 13

7.1 Maintenance of Systems....................................................................................... 13

7.2 Maintenance of Health and Safety........................................................................ 13 ARTICLE 8 METERING............................................................................................................. 13

8.1 Metering................................................................................................................ 13

8.2 Meter Verification................................................................................................. 13

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ARTICLE 9 INVOICING AND PAYMENT; CREDIT.............................................................. 14

9.1 Invoicing ............................................................................................................... 14

9.2 Payment................................................................................................................. 14

9.3 Books and Records ............................................................................................... 14

9.4 Payment Adjustments; Billing Errors................................................................... 14

9.5 Billing Disputes .................................................................................................... 14

9.6 Netting of Payments.............................................................................................. 15 ARTICLE 10 NOTICES............................................................................................................... 15

10.1 Addresses for the Delivery of Notices.................................................................. 15

10.2 Acceptable Means of Delivering Notice............................................................... 15 ARTICLE 11 FORCE MAJEURE ............................................................................................... 15

11.1 Definition. ............................................................................................................. 16

11.2 No Liability If a Force Majeure Event Occurs ..................................................... 16

11.3 Notice.................................................................................................................... 17

11.4 Termination Following Force Majeure Event....................................................... 17 ARTICLE 12 DEFAULTS; REMEDIES; TERMINATION ....................................................... 17

12.1 Events of Default. An “Event of Default” shall mean, ........................................ 17

12.2 Remedies; Declaration of Early Termination Date............................................... 18

12.3 Termination Payment............................................................................................ 18

12.4 Notice of Payment of Termination Payment ........................................................ 19

12.5 Disputes With Respect to Termination Payment .................................................. 19

12.6 Rights And Remedies Are Cumulative................................................................. 19

12.7 Mitigation.............................................................................................................. 19 ARTICLE 13 LIMITATION OF LIABILITY AND EXCLUSION OF WARRANTIES........... 19

13.1 No Consequential Damages.................................................................................. 19

13.2 Waiver and Exclusion of Other Damages............................................................. 19 ARTICLE 14 REPRESENTATIONS AND WARRANTIES; AUTHORITY ............................ 20

14.1 Seller’s Representations and Warranties .............................................................. 20

14.2 Buyer’s Effective Date Representations and Warranties...................................... 21

14.3 General Covenants................................................................................................ 22 ARTICLE 15 ASSIGNMENT...................................................................................................... 22

15.1 General Prohibition on Assignments .................................................................... 22

15.2 Permitted Assignment; Change of Control of Seller ............................................ 22

15.3 Change of Control of Buyer.................................................................................. 23

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Packet Pg. 247 Attachment: Master PPA - Council meeting attachment (Approval Related to the San Jacinto Power Choice Solar and Battery Residential iii
ARTICLE 16 LENDER ACCOMMODATIONS ........................................................................ 23

16.1 Granting of Lender Interest................................................................................... 23

16.2 Rights of Lender ................................................................................................... 23

16.3 Cure Rights of Lender........................................................................................... 24 ARTICLE 17 DISPUTE RESOLUTION ..................................................................................... 24

17.1 Governing Law ..................................................................................................... 24

17.2 Dispute Resolution................................................................................................ 24 ARTICLE 18 INDEMNIFICATION............................................................................................ 24

18.1 Indemnification. .................................................................................................... 24

18.2 Claims................................................................................................................... 25 ARTICLE 19 INSURANCE......................................................................................................... 25

19.1 Insurance............................................................................................................... 25 ARTICLE 20 CONFIDENTIAL INFORMATION ..................................................................... 27

20.1 Definition of Confidential Information................................................................. 27

20.2 Duty to Maintain Confidentiality.......................................................................... 27

20.3 Irreparable Injury; Remedies ................................................................................ 27

20.4 Disclosure to Lender............................................................................................. 27 ARTICLE 21 MISCELLANEOUS .............................................................................................. 27

21.1 Entire Agreement; Integration; Exhibits............................................................... 27

21.2 Amendments......................................................................................................... 28

21.3 No Waiver............................................................................................................. 28

21.4 No Agency, Partnership, Joint Venture or Lease.................................................. 28

21.5 Severability ........................................................................................................... 28

21.6 Forward Contract .................................................................................................. 28

21.7 Mobile-Sierra ........................................................................................................ 28

21.8 Counterparts.......................................................................................................... 29

21.9 Facsimile or Electronic Delivery .......................................................................... 29

21.10 Binding Effect....................................................................................................... 29

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Packet Pg. 248 Attachment: Master PPA - Council meeting attachment (Approval Related to the San Jacinto Power Choice Solar and Battery Residential iv
Exhibits:

Exhibit A Included Systems List
Exhibit B Notices
Exhibit C Emergency Contact Information

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Packet Pg. 249 Attachment: Master PPA - Council meeting attachment (Approval Related to the San Jacinto Power Choice Solar and Battery Residential 1 RESIDENTIAL SOLAR / ENERGY STORAGE PROGRAM

POWER PURCHASE AND SALE AGREEMENT
This Residential Solar / Energy Storage Program Power Purchase and Sale Agreement (this “Agreement”) is made and effective as of ________, 2023 (the “Effective Date”), by and between Participate.Energy LLC (“Seller”) and CITY OF SAN JACINTO, A CALIFORNIA MUNICIPAL CORPORATION, D/B/A SAN JACINTO POWER (“Buyer”). Seller and Buyer are sometimes referred to herein individually as a “Party” and jointly as the “Parties.” Unless the context otherwise specifies or requires, capitalized terms in this Agreement have the meanings set forth in Article 1.

RECITALS
A, Seller desires to develop, design, construct, finance, own and operate residential solar and energy storage systems to be located at private residences within Buyer’s service territory (each a “System” or, collectively, the “Systems”).

B. Seller desires to sell to Buyer, and Buyer is willing to purchase from Seller the Product generated by each System pursuant to the terms and conditions of this Agreement.

C. Buyer and Seller intend that Seller will add Systems to this Agreement from time to time during the Portfolio Term. Each System, once such System has reached Commercial Operation evidenced by delivery from Seller to Buyer of (i) written confirmation from the System installer that such System has been completed, and (ii) an updated Included Systems List attached hereto as Exhibit A listing such new System as a system covered under this Agreement, shall be covered under the terms of this Agreement, and Buyer shall purchase from Seller the Product generated by such System as of the Commercial Operation Date.

D. In consideration of the mutual covenants and agreements herein contained, and for other good and valuable consideration, the sufficiency and adequacy of which are hereby acknowledged, the Parties agree to the following:

ARTICLE 1

DEFINITIONS

1.1 Contract Definitions. The following terms, when used herein with initial capitalization, shall have the meanings set forth below:
“Affiliate” means, with respect to any Person, each Person that directly or indirectly controls, is controlled by, or is under common control with such designated Person. For purposes of this definition, “control” (including, with correlative meanings, the terms “controlled by” and “under common control with”), as used with respect to any Person, shall mean (a) the direct or indirect right to cast at least fifty percent (50%) of the votes exercisable at an annual general meeting (or its equivalent) of such Person or, if there are no such rights, ownership of at least fifty percent (50%) of the equity or other ownership interest in such Person, or (b) the right to direct the policies or operations of such Person.

Commented [CH1]: BBK: Does this need to be updated
since Seller is only financing the Systems?

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Packet Pg. 250 Attachment: Master PPA - Council meeting attachment (Approval Related to the San Jacinto Power Choice Solar and Battery Residential 2 “Agreement” has the meaning set forth in the preamble and includes any exhibits, schedules and any written supplements hereto, any designated collateral, credit support or similar arrangement between the Parties.
“Bankrupt” means with respect to any entity, such entity that (a) files a petition or otherwise commences, authorizes or acquiesces in the commencement of a proceeding or cause of action under any bankruptcy, insolvency, reorganization or similar Law, (b) has any such petition filed or commenced against it which remains unstayed or undismissed for a period of sixty (60) days, (c) makes an assignment or any general arrangement for the benefit of creditors, (d) otherwise becomes bankrupt or insolvent (however evidenced), (e) has a liquidator, administrator, receiver, trustee, conservator or similar official appointed with respect to it or any substantial portion of its property or assets, or (f) is generally unable to pay its debts as they fall due. “Bankruptcy Code” means the United States Bankruptcy Code (11 U.S.C. §101 et seq.), as amended, and any successor statute.
“Business Day” means any day except a Saturday, Sunday, or a Federal Reserve Bank holiday in California. A Business Day begins at 8:00 a.m. and ends at 5:00 p.m. local time for the Party sending a Notice, or payment, or performing a specified action. “Buyer” has the meaning set forth in the preamble.
“Buyer’s Service Territory” means the service territory of Buyer “Commercial Operation” means, with respect to each System, the condition existing when (i) all conditions to operate the System, including without limitation all applicable regulatory authorizations, approvals and permits for the operation of the System have been obtained, satisfied and complied with, and are in full force and effect, in order to produce, sell and transmit Energy. “Commercial Operation Date” means the first date of Commercial Operation of a System after completion of a System as confirmed in writing by the System installer. “Confidential Information” has the meaning set forth in Section 20.1. “Contract Capacity” means, with respect to each System the kW AC capacity measured at the Delivery Point set forth in the Included Systems List with respect to such System. “Capacity Charge” has the meaning set forth in Section 4.3. “Contract Price” has the meaning set forth in Section 4.3. “Contract Term” has the meaning set forth in Section 3.1. “Contract Year” means with respect to any and all Systems a twelve (12) month period beginning on the Commercial Operation Date and each successive twelve (12) month period thereafter during the Contract Term.
“Customer” means the property owner of the property where a System is located.

4.2.b
Packet Pg. 251 Attachment: Master PPA - Council meeting attachment (Approval Related to the San Jacinto Power Choice Solar and Battery Residential 3 “Customer Agreement” means an agreement between the Seller and Customer relating to (a) the installation of the System at the property, (b) the sale of power generated by the System by Seller to Buyer, and (3) the sale by Buyer to the Customer of an amount of electric power, which is equivalent to electric power generated by the System located on the property. “Costs” means, with respect to the Non-Defaulting Party, brokerage fees, commissions and other similar third-party transaction costs and expenses reasonably incurred by such Party either in terminating any arrangement pursuant to which it has hedged its obligations or entering into new arrangements which replace the Agreement; and all reasonable attorneys’ fees and expenses incurred by the Non-Defaulting Party in connection with terminating the Agreement. “CPUC” means the California Public Utilities Commission, or successor entity. “Defaulting Party” has the meaning set forth in Section 12.1(a). “Delivered Energy” means with respect to each System all Energy produced from the System as measured in kWh at the Delivery Point.
“Delivery Point” means with respect to each System the point of delivery for Energy as set forth in the final as-built plans for such System.
“Early Termination Date” has the meaning set forth in Section 12.2. “Effective Date” has the meaning set forth on the preamble. “Energy” means metered electrical energy, measured in kWh, which is produced by each System or by a number of Systems in the aggregate.
“Energy Rate” has the meaning set forth in Section 4.3. “Event of Default” has the meaning set forth in Section 12.1. “FERC” means the Federal Energy Regulatory Commission or any successor government agency.
“Force Majeure Event” has the meaning set forth in Section 11.1. “Future Environmental Attributes” shall mean, with respect to each System, any and all generation attributes (other than Green Attributes or Renewable Energy Incentives) under the RPS regulations and/or under any and all other international, federal, regional, state or other law, rule, regulation, bylaw, treaty or other intergovernmental compact, decision, administrative decision, program (including any voluntary compliance or membership program), competitive market or business method (including all credits, certificates, benefits, and emission measurements, reductions, offsets and allowances related thereto) that are attributable, now, or in the future, to the generation of electrical energy by the System.
“Gains” means, with respect to any Party, an amount equal to the present value of the economic benefit to it, if any (exclusive of Costs), resulting from the termination of this Agreement Commented [CH2]: BBK: This term is used throughout the
Agreement, but I don’t see that it has been defined. I suggest we define it in this Section 1.1.

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Packet Pg. 252 Attachment: Master PPA - Council meeting attachment (Approval Related to the San Jacinto Power Choice Solar and Battery Residential 4 for the remaining Contract Term, determined in a commercially reasonable manner. Factors used in determining the economic benefit to a Party may include, without limitation, reference to information supplied by one or more third parties, which shall exclude Affiliates of the nondefaulting Party, including without limitation, quotations (either firm or indicative) of relevant rates, prices, yields, yield curves, volatilities, spreads or other relevant market data in the relevant markets, comparable transactions, forward price curves based on economic analysis of the relevant markets, settlement prices for comparable transactions at liquid trading hubs (e.g., NP-15), all of which should be calculated for the remaining Contract Term, and includes the value of Green Attributes and Resource Adequacy Benefits.
“Governmental Authority” means any federal, state, provincial, local or municipal government, any political subdivision thereof or any other governmental, congressional or parliamentary, regulatory, or judicial instrumentality, authority, body, agency, department, bureau, or entity with authority to bind a Party at law; provided, however, that “Governmental Authority” shall not in any event include any Party.
“Green Attributes” means any and all credits, benefits, emissions reductions, offsets, and allowances, howsoever entitled, attributable to the generation from the System, and its displacement of conventional Energy generation. Green Attributes include but are not limited to Renewable Energy Credits, as well as: (1) any avoided emissions of pollutants to the air, soil or water such as sulfur oxides (SOx), nitrogen oxides (NOx), carbon monoxide (CO) and other pollutants; (2) any avoided emissions of carbon dioxide (CO2), methane (CH4), nitrous oxide, hydrofluorocarbons, perfluorocarbons, sulfur hexafluoride and other greenhouse gases (GHGs) that have been determined by the United Nations Intergovernmental Panel on Climate Change, or otherwise by law, to contribute to the actual or potential threat of altering the Earth’s climate by trapping heat in the atmosphere;1(3) the reporting rights to these avoided emissions, such as Green Tag Reporting Rights. Green Tag Reporting Rights are the right of a Green Tag Purchaser to report the ownership of accumulated Green Tags in compliance with federal or state law, if applicable, and to a federal or state agency or any other party at the Green Tag Purchaser’s discretion, and include without limitation those Green Tag Reporting Rights accruing under Section 1605(b) of The Energy Policy Act of 1992 and any present or future federal, state, or local law, regulation or bill, and international or foreign emissions trading program. Green Tags are accumulated on a MWh basis and one Green Tag represents the Green Attributes associated with one (1) MWh of Energy. Green Attributes do not include (i) any energy, capacity, reliability or other power attributes from the System, (ii) production tax credits associated with the construction or operation of the System and other financial incentives in the form of credits, reductions, or allowances associated with the System that are applicable to a state or federal income taxation obligation, (iii) fuel-related subsidies or “tipping fees” that may be paid to Seller to accept certain fuels, or local subsidies received by the generator for the destruction of particular preexisting pollutants or the promotion of local environmental benefits, or (iv) emission reduction credits encumbered or used by the System for compliance with local, state, or federal operating and/or air

1 Avoided emissions may or may not have any value for GHG compliance purposes.

Although avoided emissions are included in the list of Green Attributes, this inclusion does not create any right to use those avoided emissions to comply with any GHG regulatory program.

4.2.b
Packet Pg. 253 Attachment: Master PPA - Council meeting attachment (Approval Related to the San Jacinto Power Choice Solar and Battery Residential 5 quality permits. If the System is a biomass or landfill gas System and Seller receives any tradable Green Attributes based on the greenhouse gas reduction benefits or other emission offsets attributed to its fuel usage, it shall provide Buyer with sufficient Green Attributes to ensure that there are zero net emissions associated with the production of electricity from the System. “Green Tag Reporting Rights” means the right of a purchaser of renewable energy to report ownership of accumulated “green tags” in compliance with and to the extent permitted by Law and include, without limitation, rights under Section 1605(b) of the Energy Policy Act of 1992, and any present or future federal, state or local certification program or emissions trading program, including pursuant to the WREGIS operating rules. “Included Systems List” means a list of Systems covered by the terms of this Agreement, of which Seller will sell to Buyer, and Buyer will purchase from Seller the Product generated by each System listed thereon. The Included System List will be amended by means of Seller delivering an updated Included Systems List to Buyer from time to time, listing any new System completed by Seller. The initial Included Systems List is attached hereto as Exhibit A and subsequent Included Systems List amended as stated above shall automatically replace any prior Included Systems List as Exhibit A attached hereto. Absent manifest error or fraud, each updated Included Systems List shall be binding upon the Parties. “Indemnified Party” has the meaning set forth in Section 18.1. “Indemnifying Party” has the meaning set forth in Section 18.1. “Installed Capacity” means, with respect to each System, the System demonstrated peak System electrical output measured in kW AC at the Delivery Point. “Interest Rate” has the meaning set forth in Section 9.2. “kW” means kilowatts measured in alternating current.
“kWh” means kilowatt-hour.
“Law” means any applicable law, statute, regulation, rule, regulation, decision, writ, order, decree or judgment, permit or any interpretation thereof, promulgated or issued by a Governmental Authority.
“Lender” means, collectively, any Person (i) providing senior or subordinated construction, interim or long-term debt or equity financing or refinancing for or in connection with the development, construction, purchase, installation or operation of the System, whether that financing or refinancing takes the form of private debt, equity, public debt or any other form (including financing or refinancing provided to a member or other direct or indirect owner of Seller), including any equity investor directly or indirectly providing financing or refinancing for the System or purchasing equity ownership interests of Seller and/or its Affiliates, and any trustee or agent acting on their behalf, (ii) providing interest rate or commodity protection under an agreement hedging or otherwise mitigating the cost of any of the foregoing obligations and/or (iii) participating in a lease financing (including a sale leaseback or leveraged leasing structure) with respect to the System.

4.2.b
Packet Pg. 254 Attachment: Master PPA - Council meeting attachment (Approval Related to the San Jacinto Power Choice Solar and Battery Residential 6 “Losses” means, with respect to any Party, an amount equal to the present value of the economic loss to it, if any (exclusive of Costs), resulting from termination of this Agreement for the remaining Contract Term, determined in a commercially reasonable manner. Factors used in determining economic loss to a Party may include, without limitation, reference to information supplied by one or more third parties, which shall exclude Affiliates of the Non-Defaulting Party, including without limitation, quotations (either firm or indicative) of relevant rates, prices, yields, yield curves, volatilities, spreads or other relevant market data in the relevant markets, comparable transactions, forward price curves based on economic analysis of the relevant markets, settlement prices for comparable transactions at liquid trading hubs (e.g., NYMEX), all of which should be calculated for the remaining Contract Term and must include the value of Green Attributes and Resource Adequacy Benefits.
“MW” means megawatts measured in alternating current.
“MWh” means megawatt-hour.
“Non-Defaulting Party” has the meaning set forth in Section 12.2. “Notice” shall, unless otherwise specified in the Agreement, mean written communications by a Party to be delivered by hand delivery, United States mail, overnight courier service, facsimile or electronic messaging (e-mail).
“Party” has the meaning set forth in the preamble.
“Person” means any individual, sole proprietorship, corporation, limited liability company, limited or general partnership, joint venture, association, joint-stock company, trust, incorporated organization, institution, public benefit corporation, unincorporated organization, government entity or other entity.
“Portfolio Term” means the time period commencing on the Effective Date and ending on the 5th anniversary thereof.
“Pre-Construction Expenses” means expenses incurred by Seller or its contractors prior to construction of a System to prepare the System site for System integration, which may include, without limitation, removal of copper or other materials from roof; upgrade roof structure; removal of existing solar PV; removal or relocation of AC unit; removal or repair of existing generator; removal of existing battery backup; removal or relocation of existing solar thermal; removal or relocation of rooftop vents; removal of trees or obstructions and tree trimming; cleaning of roof surface; repair of electrical code violation; removal or relocation of shelving; or master-panel upgrade (MPU).
“Product” means, with reference to each System, all electric energy produced by the System throughout the System Delivery Term; all Green Attributes; and all Resource Adequacy Benefits, if any; generated by, associated with or attributable to the System throughout the System Delivery Term.
“Prudent Operating Practice” means the practices, methods and standards of professional care, skill and diligence engaged in or approved by a significant portion of the electric

4.2.b
Packet Pg. 255 Attachment: Master PPA - Council meeting attachment (Approval Related to the San Jacinto Power Choice Solar and Battery Residential 7 power industry for facilities of similar size, type, and design, that, in the exercise of reasonable judgment, in light of the facts known at the time, would have been expected to accomplish results consistent with Law, reliability, safety, environmental protection, applicable codes, and standards of economy and expedition. Prudent Operating Practices are not necessarily defined as the optimal standard practice method or act to the exclusion of others, but rather refer to a range of actions reasonable under the circumstances.
“Qualified Assignee” means any Person that has (or will contract with a Person that has) competent experience in the operation and maintenance of similar electrical generation systems and is financially capable of performing Seller’s obligations (considering such Person’s own financial wherewithal and that of such Person’s guarantor or other credit support) under this Agreement.
“Renewable Energy Credit” has the meaning set forth in California Public Utilities Code Section 399.12(h), as may be amended from time to time or as further defined or supplemented by Law.
“Renewable Energy Incentives” means with respect to each System: (a) all federal, state, or local Tax credits or other Tax benefits associated with the construction, ownership, or production of electricity from the System (including credits under Sections 38, 45, 46 and 48 of the Internal Revenue Code of 1986, as amended); and (b) any other form of incentive relating in any way to the System that are not a Green Attribute or a Future Environmental Attribute. “Resource Adequacy Benefits” means the rights and privileges attached to the System that satisfy any entity’s resource adequacy obligations, as those obligations are set forth in CPUC Decisions 04-01-050, 04-10-035, 05-10-042, 06-06-064, 06-07-031 and any subsequent CPUC ruling or decision and shall include any local, zonal or otherwise locational attributes associated with the System.
“Seller” has the meaning set forth in the preamble.
“Settlement Amount” means the Non-Defaulting Party’s Costs and Losses, on the one hand, netted against its Gains, on the other. If the non-defaulting Party’s Costs and Losses exceed its Gains, then the Settlement Amount shall be an amount owing to the Non-Defaulting Party. If the Non-Defaulting Party’s Gains exceed its Costs and Losses, then the Settlement Amount shall be zero dollars ($0). The Settlement Amount does not include consequential, incidental, punitive, exemplary or indirect or business interruption damages. “System(s)” has the meaning set forth in the Recitals hereto. “System Delivery Term” means with respect to each System the period of twenty-five (25) Contract Years beginning on the Commercial Operation Date and ending on the twentieth (25th) anniversary of the Commercial Operation Date, unless terminated earlier or extended in accordance with the terms and conditions of this Agreement. In the event of an extension of a Customer Agreement beyond 25 years, the System Delivery Term for the respective System shall be extended to be co-terminus with such Customer Agreement.

4.2.b
Packet Pg. 256 Attachment: Master PPA - Council meeting attachment (Approval Related to the San Jacinto Power Choice Solar and Battery Residential 8 “System Forecast List” has the meaning set forth in Section 20.1. The format of the System Forecast List shall be substantially similar to the format of the Included Systems List. “Tax” or “Taxes” means all U.S. federal, state and local and any foreign taxes, levies, assessments, surcharges, duties and other fees and charges of any nature imposed by a Governmental Authority, whether currently in effect or adopted during the Contract Term, including ad valorem, excise, franchise, gross receipts, import/export, license, property, sales and use, stamp, transfer, payroll, unemployment, income, and any and all items of withholding, deficiency, penalty, additions, interest or assessment related thereto. “Termination Payment” has the meaning set forth in Section 12.3. “Terminated Transaction” has the meaning set forth in Section 12.2. “WREGIS” means the Western Renewable Energy Generation Information System or any successor renewable energy tracking program.

1.2 Rules of Interpretation. In this Agreement, except as expressly stated otherwise or unless the context otherwise requires:
(a) headings and the rendering of text in bold and italics are for convenience and reference purposes only and do not affect the meaning or interpretation of this Agreement; (b) words importing the singular include the plural and vice versa and the masculine, feminine and neuter genders include all genders; (c) the words “hereof”, “herein”, and “hereunder” and words of similar import shall refer to this Agreement as a whole and not to any particular provision of this Agreement; (d) a reference to an Article, Section, paragraph, clause, Party, or Exhibit is a reference to that Section, paragraph, clause of, or that Party or Exhibit to, this Agreement unless otherwise specified, and in the event of a conflict, the provisions of the main body of this Agreement shall prevail over the provisions of any attachment or annex; (e) a reference to a document or agreement, including this Agreement shall mean such document, agreement or this Agreement including any amendment or supplement to, or replacement, novation or modification of this Agreement, but disregarding any amendment, supplement, replacement, novation or modification made in breach of such document, agreement or this Agreement;
(f) a reference to a Person includes that Person’s successors and permitted assigns;
(g) the term “including” means “including without limitation” and any list of examples following such term shall in no way restrict or limit the generality of the work or provision in respect of which such examples are provided;

4.2.b
Packet Pg. 257 Attachment: Master PPA - Council meeting attachment (Approval Related to the San Jacinto Power Choice Solar and Battery Residential 9 (h) references to any statute, code or statutory provision are to be construed as a reference to the same as it may have been, or may from time to time be, amended, modified or reenacted, and include references to all bylaws, instruments, orders and regulations for the time being made thereunder or deriving validity therefrom unless the context otherwise requires; (i) in the event of a conflict, a mathematical formula or other precise description of a concept or a term shall prevail over words providing a more general description of a concept or a term;
(j) references to any amount of money shall mean a reference to the amount in United States Dollars;
(k) the expression “and/or” when used as a conjunction shall connote “any or all of”;
(l) words, phrases or expressions not otherwise defined herein that (i) have a generally accepted meaning in Prudent Operating Practice shall have such meaning in this Agreement or (ii) do not have well known and generally accepted meaning in Prudent Operating Practice but that have well known and generally accepted technical or trade meanings, shall have such recognized meanings; and
(m) each Party acknowledges that it was represented by counsel in connection with this Agreement and that it or its counsel reviewed this Agreement and that any rule of construction to the effect that ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of this Agreement.

ARTICLE 2

SYSTEMS, COMMERCIAL OPERATION, FORECASTING

2.1 Systems. During the Portfolio Period, Seller shall use reasonable commercial efforts to design, develop and install Systems in Buyer’s Service Territory. Each System developed by Seller in Buyer’s Service Territory shall be developed exclusively for inclusion under the terms of this Agreement.

2.2 Commercial Operation. Within ten (10) days after a System qualified under Section 2.1 above has reached Commercial Operation, Seller shall deliver to Buyer confirmation by the System installer either in hardcopy or electronic that such System has been completed and an updated Included Systems List adding such System thereon. Upon delivery of the updated Included Systems List, such System shall be covered under the terms of this Agreement.

2.3 Forecasting. Within ten (10) days after the end of each calendar quarter during the Portfolio Period, Seller shall deliver to Buyer a list (the “System Forecast List”) with Systems which Seller forecasts to place into Commercial Operation within ninety (90) days after the date of the System Forecast List.

4.2.b
Packet Pg. 258 Attachment: Master PPA - Council meeting attachment (Approval Related to the San Jacinto Power Choice Solar and Battery Residential 10 ARTICLE 3
TERM

3.1 Contract Term. The term of this Agreement (“Contract Term”) consist of the Portfolio Term and the System Delivery Term, and shall commence on the Effective Date and shall remain in full force and effect with respect to each System until the end of the applicable System Delivery Term unless earlier terminated as provided herein.

3.2 Contract Term Extension. Buyer shall have the right, but not the obligation, to extend the System Delivery Term for any System for two additional five (5) Contract Years at the then-current Contract Price, but Seller must receive Notice of such extension at least one hundred eighty days (180) before the end of the initial Contract Term or the then current extension term thereof.

3.3 Survival of Contract Provisions. Applicable provisions of this Agreement shall continue in effect after termination, including early termination, to the extent necessary to enforce or complete the duties, obligations or responsibilities of the Parties arising prior to termination.

The confidentiality obligations of the Parties under Article 19 shall remain in full force and effect for two (2) years following the termination of this Agreement, and all indemnity and audit rights shall remain in full force and effect for one (1) year following the termination of this Agreement.

ARTICLE 4

PURCHASE AND SALE

4.1 Sale of Product. Subject to Seller’s documented deliveries to Buyer under Section

2.2 above and the terms and conditions of this Agreement, during the Delivery Term, Seller shall sell and deliver to Buyer, and Buyer shall purchase from Seller at the applicable Energy Rate, all of the Product produced by a System delivered to the Delivery Point. At its sole discretion, Buyer may re-sell or use for another purpose all or a portion of the Product. Buyer will have exclusive rights to offer, bid, or otherwise submit the Product from the System for resale in the market, and retain and receive any and all related revenues. Buyer has no obligation to purchase from Seller any Product from any System that is not or cannot be delivered to the Delivery Point as a result of any circumstance, including, an outage of the System, a Force Majeure Event affecting Buyer’s ability to receive the Product (but not its ability to transmit the Product from the Delivery Point).

In no event shall Seller have the right to procure any element of the Product for sale or delivery to Buyer from sources other than the Systems covered under the terms of this Agreement.

4.2 Sale of Green Attributes. During the Delivery Term, Seller shall sell and deliver to Buyer, and Buyer shall purchase from Seller, all of the Green Attributes, attributable to the Energy produced by a Systems covered under the terms of this Agreement at no additional cost.

4.3 Compensation. The contract price payable by Buyer to Seller hereunder (the “Contract Price”) shall be calculated as the sum of Energy Rate and Capacity Charge. (a) Energy Rate. For each kWh delivered to a Delivery Point Buyer shall pay Seller the following amounts (the “Energy Rate”) during the first Contract Year of each System Delivery Term:

Commented [CH3]: BBK: This is also addressed in Section

5.1(b) below. Is there a cost to buy the Green Attributes? The below seems to imply that it is included in the contract price, but it is not clear.

4.2.b
Packet Pg. 259 Attachment: Master PPA - Council meeting attachment (Approval Related to the San Jacinto Power Choice Solar and Battery Residential 11 (i) fourteen and one-half U.S. Cents ($0.145) for Systems with PreConstruction Costs of seven hundred fifty Dollars ($750.00) or less; (ii) fifteen U.S. Cents ($0.15) for Systems with Pre-Construction Costs exceeding seven hundred fifty Dollars ($750.00) but less than two thousand five hundred Dollars ($2,500);
(iii) fifteen and one-half U.S. Cents ($0.155) for Systems with PreConstruction Costs exceeding two thousand five hundred Dollars ($2,500) but less than five thousand Dollars ($5,000)
The applicable Energy Rate for the first Contract Year of the System Delivery Term will be set forth on the Included Systems List for each System. For each subsequent Contract Year during the System Delivery Term, the Energy Rate shall increase by one and nine-tenth percent (1.9%) annually.
(b) Capacity Charge. For each System that includes an installed and operational Tesla Powerwall, Buyer shall pay Seller a monthly fee (the “Capacity Charge”) in the amount of one hundred fifteen Dollars ($115.00), provided, that the Capacity Charge shall be reduced to seventy-five Dollars ($75.00) for any additional Tesla Powerwall installed at the same System site.

4.4 Ownership of Renewable Energy Incentives. Seller shall have all right, title and interest in and to all Renewable Energy Incentives. Buyer acknowledges that any Renewable Energy Incentives belong to Seller. If any Renewable Energy Incentives, or values representing the same, are initially credited or paid to Buyer, Buyer shall cause such Renewable Energy Incentives or values relating to same to be assigned or transferred to Seller without delay. Buyer shall reasonably cooperate with Seller, at Seller’s sole expense, in Seller’s efforts to meet the requirements for any certification, registration, or reporting program relating to Renewable Energy Incentives.

4.5 Future Environmental Attributes.
(a) The Parties acknowledge and agree that as of the Effective Date, environmental attributes sold under this Agreement are restricted to Green Attributes; however, Future Environmental Attributes may be created by a Governmental Authority through Laws enacted after the Effective Date. In such event, Buyer shall bear all costs associated with the transfer, qualification, verification, registration and ongoing compliance for such Future Environmental Attributes, but there shall be no increase in the Contract Price. Upon Seller’s receipt of Notice from Buyer of Buyer’s intent to claim such Future Environmental Attributes, the Parties shall determine the necessary actions and additional costs associated such Future Environmental Attributes. Seller shall have no obligation to alter the System unless the Parties have agreed on all necessary terms and conditions relating to such alteration and Buyer has agreed to reimburse Seller for all costs associated with such alteration. (b) If Buyer elects to receive Future Environmental Attributes pursuant to Section 4.5(a), the Parties agree to negotiate in good faith with respect to the development of further agreements and documentation necessary to effectuate the transfer of such Future

4.2.b
Packet Pg. 260 Attachment: Master PPA - Council meeting attachment (Approval Related to the San Jacinto Power Choice Solar and Battery Residential 12 Environmental Attributes, including agreement with respect to (i) appropriate transfer, delivery and risk of loss mechanisms, and (ii) appropriate allocation of any additional costs, as set forth above; provided, that the Parties acknowledge and agree that such terms are not intended to alter the other material terms of this Agreement.

4.6 Sale of Energy to Customers. Buyer agrees to sell the electric energy produced by the System throughout the System Delivery Term at a price not higher than the Energy Rate and at terms no less favorable than the terms set forth under this Agreement.

ARTICLE 5

OBLIGATIONS AND DELIVERIES

5.1 Delivery.
(a) Energy. Subject to the terms and conditions of this Agreement, Seller shall make available and Buyer shall accept all Delivered Energy on an as-generated, instantaneous basis at the respective Delivery Point. Notwithstanding anything to the contrary in this Agreement (including with respect to any Force Majeure Event), Buyer shall be responsible for all charges, penalties, ratcheted demand or similar charges, and any transmission related charges, including imbalance penalties or congestion charges associated with Delivered Energy from and after the Delivery Point.
(b) Green Attributes. Seller hereby provides and conveys all Green Attributes associated with the Delivered Energy as part of the Product being delivered. Seller represents and warrants that Seller holds the rights to all Green Attributes from the System, and Seller agrees to convey and hereby conveys all such Green Attributes to Buyer as included in the delivery of the Product from the System.

5.2 Title and Risk of Loss.
(a) Energy. Title to and risk of loss related to the Delivered Energy generated by each System shall pass and transfer from Seller to Buyer at the Delivery Point. (b) Green Attributes. Title to and risk of loss related to the Green Attributes shall pass and transfer from Seller to Buyer upon the transfer of such Green Attributes in accordance with WREGIS.

ARTICLE 6
TAXES

6.1 Allocation of Taxes and Charges. Seller shall pay or cause to be paid all Taxes on or with respect to any System or on or with respect to the sale and making available Product to Buyer, that are imposed on Product prior to the Delivery Point. Buyer shall pay or cause to be paid all Taxes on or with respect to the delivery to and purchase by Buyer of Product that are imposed on Product at and from a Delivery Point (other than withholding or other Taxes imposed on Seller’s income, revenue, receipts or employees). Notwithstanding the foregoing, each Party shall be responsible for its own Taxes calculated based on the income or profits generated in connection with the purchase and sale of the Product hereunder. If a Party is required to remit or

4.2.b
Packet Pg. 261 Attachment: Master PPA - Council meeting attachment (Approval Related to the San Jacinto Power Choice Solar and Battery Residential 13 pay Taxes that are the other Party’s responsibility hereunder, such Party shall promptly pay the Taxes due and then seek and receive reimbursement from the other for such Taxes. In the event any sale of Energy hereunder is exempt from or not subject to any particular Tax, Buyer shall provide Seller with all necessary documentation within thirty (30) days after the Effective Date to evidence such exemption or exclusion. If Buyer does not provide such documentation, then Buyer shall indemnify, defend, and hold Seller harmless from any liability with respect to Taxes from which Buyer claims it is exempt.

6.2 Cooperation. Each Party shall use reasonable efforts to implement the provisions of and administer this Agreement in accordance with the intent of the Parties to minimize all Taxes, so long as no Party is materially adversely affected by such efforts. The Parties shall cooperate to minimize Tax exposure; provided, however, that neither Party shall be obligated to incur any financial or operational burden to reduce Taxes for which the other Party is responsible hereunder without receiving due compensation therefore from the other Party.

ARTICLE 7

MAINTENANCE OF SYSTEMS

7.1 Maintenance of Systems. Seller shall comply with Law and Prudent Operating Practice relating to the operation and maintenance of all System covered under this Agreement, and the generation and sale of Product generated therefrom.

7.2 Maintenance of Health and Safety. Seller shall take reasonable safety precautions with respect to the operation, maintenance, repair and replacement of each System. If Seller becomes aware of any circumstances relating to a System that create an imminent risk of damage or injury to any Person or any Person’s property, Seller shall take prompt, reasonable action to prevent such damage or injury and shall give Buyer’s emergency contact identified on Exhibit D Notice of such condition. Such action may include disconnecting and removing all or a portion of such System, or suspending the supply of Energy from such System to Buyer.

ARTICLE 8

METERING

8.1 Metering. Seller shall measure the amount of Energy produced at each System using a commercially available, revenue-grade metering system. Such meter shall be installed and maintained at Seller’s cost. Each meter shall be kept under seal, such seals to be broken only when the meters are to be tested, adjusted, modified or relocated. In the event that Seller breaks a seal, Seller shall notify Buyer as soon as practicable. In addition, Seller hereby agrees to provide all meter data to Buyer in a form reasonably acceptable to Buyer.

8.2 Meter Verification. If Seller has reason to believe there may be a meter malfunction, or upon Buyer’s reasonable request, Seller shall test the meters of a reasonable sample of all Systems then covered under this Agreement, but in any case, not more than 1 in every 10 Systems. The tests shall be conducted by independent third-parties qualified to conduct such tests. Buyer shall be notified seven (7) days in advance of such tests and have a right to be present during such tests. If a meter is inaccurate it shall be promptly repaired or replaced. If a meter is inaccurate by more than one percent (1%) and it is not known when the meter inaccuracy

4.2.b
Packet Pg. 262 Attachment: Master PPA - Council meeting attachment (Approval Related to the San Jacinto Power Choice Solar and Battery Residential 14 commenced (if such evidence exists such date will be used to adjust prior invoices), then the invoices covering the period of time since the last meter test for the respective System shall be adjusted for the amount of the inaccuracy on the assumption that the inaccuracy persisted during one-half of such period. In the case where the testing of meters from a reasonable sample of all Systems covered under this Agreement discovers an inaccurate meter, Buyer may request an additional testing of meters from different Systems pursuant to this Section.

ARTICLE 9
INVOICING AND PAYMENT; CREDIT

9.1 Invoicing. Seller shall make good faith efforts to deliver an aggregate invoice to Buyer for the Contract Price due for all Systems then covered under this Agreement no later than fifteen (15) Business Days after the end of the prior monthly billing period.

9.2 Payment. Buyer shall make payment to Seller for the Contract Price due and payable by wire transfer or ACH payment to the bank account provided on each monthly invoice.

Buyer shall pay undisputed invoice amounts within thirty (30) days after receipt of the invoice. If such due date falls on a weekend or legal holiday, such due date shall be the next Business Day.

Payments made after the due date will be considered late and will bear interest on the unpaid balance. If the amount due is not paid on or before the due date or if any other payment that is due and owing from one party to another is not paid on or before its applicable due date, a late payment charge shall be applied to the unpaid balance and shall be added to the next billing statement. Such late payment charge shall be calculated based on an annual interest rate equal to 10% of the total amount due. If the due date occurs on a day that is not a Business Day, the late payment charge shall begin to accrue on the next succeeding Business Day.

9.3 Books and Records. To facilitate payment and verification, each Party shall maintain all books and records necessary for billing and payments, including copies of all invoices under this Agreement, for a period of at least two (2) years or as otherwise required by Law. Upon fifteen (15) days’ Notice to Seller, Buyer shall be granted reasonable access to the accounting books and records pertaining to all invoices generated pursuant to this Agreement.

9.4 Payment Adjustments; Billing Errors. Payment adjustments shall be made if Buyer or Seller discovers there have been good faith inaccuracies in invoicing that are not otherwise disputed under Section 9.5, or there is determined to have been a meter inaccuracy sufficient to require a payment adjustment. If the required adjustment is in favor of Buyer, Buyer’s monthly payment shall be credited in an amount equal to the adjustment. If the required adjustment is in favor of Seller, Seller shall add the adjustment amount to Buyer’s next monthly invoice.

Adjustments in favor of either Buyer or Seller shall bear interest, until settled in full, in accordance with Section 9.2, accruing from the date on which the non-erring Party received Notice thereof.

9.5 Billing Disputes. A Party may, in good faith, dispute the correctness of any invoice or any adjustment to an invoice, rendered under this Agreement or adjust any invoice for any arithmetic or computational error within twelve (12) months of the date the invoice, or adjustment to an invoice, was rendered. In the event an invoice or portion thereof, or any other claim or adjustment arising hereunder, is disputed, payment of the undisputed portion of the invoice shall be required to be made when due. Any invoice dispute or invoice adjustment shall

4.2.b
Packet Pg. 263 Attachment: Master PPA - Council meeting attachment (Approval Related to the San Jacinto Power Choice Solar and Battery Residential 15 be in writing and shall state the basis for the dispute or adjustment. Payment of the disputed amount shall not be required until the dispute is resolved. Upon resolution of the dispute, any required payment shall be made within five (5) Business Days of such resolution, along with interest accrued at the Interest Rate from and including the original due date to but excluding the date paid. Inadvertent overpayments shall be returned upon request or deducted by the Party receiving such overpayment from subsequent payments, with interest accrued at the Interest Rate from and including the date of such overpayment to but excluding the date repaid or deducted by the Party receiving such overpayment. Any dispute with respect to an invoice is waived if the other Party is not notified in accordance with this Section 9.5 within twelve (12) months after the invoice is rendered or subsequently adjusted, except to the extent any misinformation was from a third party not affiliated with any Party and such third party corrects its information after the twelve-month period. If an invoice is not rendered within twelve (12) months after the close of the month during which performance occurred, the right to payment for such performance is waived.

9.6 Netting of Payments. The Parties hereby agree that they shall discharge mutual debts and payment obligations due and owing to each other on the same date through netting, in which case all amounts owed by each Party to the other Party for the purchase and sale of Product during the monthly billing period under this Agreement, including any related damages calculated pursuant to Exhibits B and F, interest, and payments or credits, shall be netted so that only the excess amount remaining due shall be paid by the Party who owes it.

ARTICLE 10

NOTICES

10.1 Addresses for the Delivery of Notices. Any Notice required, permitted, or contemplated hereunder shall be in writing, shall be addressed to the Party to be notified at the address set forth Exhibit B or at such other address or addresses as a Party may designate for itself from time to time by Notice hereunder.

10.2 Acceptable Means of Delivering Notice. Each Notice required, permitted, or contemplated hereunder shall be deemed to have been validly served, given or delivered as follows: (a) if sent by United States mail with proper first class postage prepaid, three (3) Business Days following the date of the postmark on the envelope in which such Notice was deposited in the United States mail; (b) if sent by a regularly scheduled overnight delivery carrier with delivery fees either prepaid or an arrangement with such carrier made for the payment of such fees, the next Business Day after the same is delivered by the sending Party to such carrier; (c) if sent by electronic communication (including electronic mail, facsimile, or other electronic means) and if concurrently with the transmittal of such electronic communication the sending Party provides a copy of such electronic Notice by hand delivery or express courier, at the time indicated by the time stamp upon delivery; or (d) if delivered in person, upon receipt by the receiving Party.

Notwithstanding the foregoing, Notices of outages or other scheduling or dispatch information or requests, may be sent by electronic communication and shall be considered delivered upon successful completion of such transmission.

ARTICLE 11

FORCE MAJEURE

4.2.b
Packet Pg. 264 Attachment: Master PPA - Council meeting attachment (Approval Related to the San Jacinto Power Choice Solar and Battery Residential 16 11.1 Definition.
(a) “Force Majeure Event” means any act or event that delays or prevents a Party from timely performing all or a portion of its obligations under this Agreement or from complying with all or a portion of the conditions under this Agreement if such act or event, despite the exercise of reasonable efforts, cannot be avoided by and is beyond the reasonable control (whether direct or indirect) of and without the fault or negligence of the Party relying thereon as justification for such delay, nonperformance, or noncompliance. (b) Without limiting the generality of the foregoing, so long as the following events, despite the exercise of reasonable efforts, cannot be avoided by, and are beyond the reasonable control (whether direct or indirect) of and without the fault or negligence of the Party relying thereon as justification for such delay, nonperformance or noncompliance, a Force Majeure Event may include an act of God or the elements, such as flooding, lightning, hurricanes, tornadoes, or ice storms; explosion; fire; volcanic eruption; flood; epidemic; landslide; mudslide; sabotage; terrorism; earthquake; or other cataclysmic events; an act of public enemy; war; blockade; civil insurrection; riot; civil disturbance; or strikes or other labor difficulties caused or suffered by a Party or any third party except as set forth below. (c) Notwithstanding the foregoing, the term “Force Majeure Event” does not include (i) economic conditions that render a Party’s performance of this Agreement at the Contract Price unprofitable or otherwise uneconomic (including Buyer’s ability to buy Energy at a lower price than the Contract Price, Buyer’s inability economically to use or resell the Product purchased hereunder, or Seller’s ability to sell Energy at a higher price than the Contract Price); (ii) Seller’s inability to obtain permits or approvals of any type for the construction, operation, or maintenance of the System; (ii) the inability of a Party to make payments when due under this Agreement, unless the cause of such inability is an event that would otherwise constitute a Force Majeure Event as described above; (iv) Seller’s inability to obtain sufficient labor, equipment, materials, or other resources to build or operate the System; (v) a strike, work stoppage or labor dispute limited only to any one or more of Seller, Seller’s Affiliates, Seller’s contractors, their subcontractors thereof or any other third party employed by Seller to work on the System; or (vi) any equipment failure except if such equipment failure is caused by a Force Majeure Event.

11.2 No Liability If a Force Majeure Event Occurs. Neither Seller nor Buyer shall be liable to the other Party in the event it is prevented from performing its obligations hereunder in whole or in part due to a Force Majeure Event. The Party rendered unable to fulfill any obligation by reason of a Force Majeure Event shall take reasonable actions necessary to remove such inability with due speed and diligence. Nothing herein shall be construed as permitting that Party to continue to fail to perform after said cause has been removed. The obligation to use due speed and diligence shall not be interpreted to require resolution of labor disputes by acceding to demands of the opposition when such course is inadvisable in the discretion of the party having such difficulty. Neither Party shall be considered in breach or default of this Agreement if and to the extent that any failure or delay in the Party’s performance of one or more of its obligations hereunder is caused by a Force Majeure Event. The occurrence and continuation of a Force Majeure Event shall not suspend or excuse the obligation of a Party to make any payments due hereunder.

4.2.b
Packet Pg. 265 Attachment: Master PPA - Council meeting attachment (Approval Related to the San Jacinto Power Choice Solar and Battery Residential 17 11.3 Notice. In the event of any delay or nonperformance resulting from a Force Majeure Event, the Party suffering the Force Majeure Event shall (a) as soon as practicable, notify the other Party in writing of the nature, cause, estimated date of commencement thereof, and the anticipated extent of any delay or interruption in performance, and (b) notify the other Party in writing of the cessation or termination of such Force Majeure Event, all as known or estimated in good faith by the affected Party; provided, however, that a Party’s failure to give timely Notice shall not affect such Party’s ability to assert that a Force Majeure Event has occurred unless the delay in giving Notice materially prejudices the other Party.

11.4 Termination Following Force Majeure Event. If a Force Majeure Event has occurred that has caused either Party to be wholly or partially unable to perform its obligations hereunder, and has continued for a consecutive eight (8) month period, then the non-claiming Party may terminate this Agreement upon Notice to the other Party with respect to the System experiencing the Force Majeure Event. Upon any such termination, the non-claiming Party shall have no liability to the Force Majeure Event claiming Party, save and except for those obligations specified in Section 0.

ARTICLE 12
DEFAULTS; REMEDIES; TERMINATION

12.1 Events of Default. An “Event of Default” shall mean, (a) with respect to a Party (the “Defaulting Party”) that is subject to the Event of Default the occurrence of any of the following:
(i) the failure by such Party to make, when due, any payment required pursuant to this Agreement and such failure is not remedied within fifteen (15) Business Days after Notice thereof;
(ii) any representation or warranty made by such Party herein is false or misleading in any material respect when made or when deemed made or repeated, and such default is not remedied within thirty (30) days after Notice thereof; (iii) the failure by such Party to perform any material covenant or obligation set forth in this Agreement (except to the extent constituting a separate Event of Default) and such failure is not remedied within thirty (30) days after Notice thereof; (iv) such Party becomes Bankrupt;
(v) such Party assigns this Agreement or any of its rights hereunder other than in compliance with Section 15.2; or
(vi) such Party consolidates or amalgamates with, or merges with or into, or transfers all or substantially all of its assets to, another entity and, at the time of such consolidation, amalgamation, merger or transfer, the resulting, surviving or transferee entity fails to assume all the obligations of such Party under this Agreement to which it or its predecessor was a party by operation of Law or pursuant to an agreement reasonably satisfactory to the other Party.

Commented [CH4]: BBK: Needs reference to correct
section.

4.2.b
Packet Pg. 266 Attachment: Master PPA - Council meeting attachment (Approval Related to the San Jacinto Power Choice Solar and Battery Residential 18 (vii) with respect to Seller as the Defaulting Party, if at any time, Seller delivers or attempts to deliver to a Delivery Point for sale under this Agreement Energy that was not generated by the respective System.

12.2 Remedies; Declaration of Early Termination Date. If an Event of Default with respect to a Defaulting Party shall have occurred and be continuing, the other Party (“NonDefaulting Party”) shall have the right (a) to send Notice, designating a day, no earlier than the day such Notice is deemed to be received and no later than twenty (20) Business Days after such Notice is deemed to be received, as an early termination date (“Early Termination Date”) of (i) the inclusion of a System under this Agreement and the respective System Delivery Term, if the Event of Default only relates to such System, or (ii) this Agreement, if the Event of Default relates to all Systems (in each case, (i) and (ii), the “Terminated Transaction”), and either the System Delivery Term (in case of option (i)) or the Contract Term (in case of Option (ii) will terminate effective as of the Early Termination Date, and all amounts owing between the Parties shall accelerate (under option (a), however, only with respect to the terminated System), and the nondefaulting party may collect liquidated damages calculated in accordance with Section 12.3 (Termination Payment) below; (b) to withhold any payments due to the Defaulting Party under this Agreement (but under option (a)(i) only with respect to the terminated System); (c) to suspend performance (but under option (a)(i) only with respect to the terminated System); and (d) to exercise any other right or remedy available at law or in equity, including injunctive relief to the extent permitted under this Agreement, except to the extent such remedies are expressly limited under this Agreement

12.3 Termination Payment. The Termination Payment (“Termination Payment”) for a Terminated Transaction shall be the aggregate of all Settlement Amounts relating to such Terminated Transaction plus any or all other amounts due to the Non-Defaulting Party relating thereto netted into a single amount. If the Non-Defaulting Party’s aggregate Gains relating to a Terminated Transaction exceed its aggregate Losses and Costs related thereto, if any, resulting from the termination of this Agreement, the Termination Payment shall be zero. The NonDefaulting Party shall calculate, in a commercially reasonable manner, a Settlement Amount for the Terminated Transaction as of the Early Termination Date. Third parties supplying information for purposes of the calculation of Gains or Losses may include, without limitation, dealers in the relevant markets, end-users of the relevant product, information vendors and other sources of market information. The Settlement Amount shall not include consequential, incidental, punitive, exemplary, indirect or business interruption damages, lost revenues or lost profits; provided, however, that any lost Green Attributes shall be deemed direct damages covered by this Agreement. Without prejudice to the Non-Defaulting Party’s duty to mitigate, the Non-Defaulting Party shall not have to enter into replacement transactions to establish a Settlement Amount. Each Party agrees and acknowledges that (a) the actual damages that the Non-Defaulting Party would incur in connection with a Terminated Transaction would be difficult or impossible to predict with certainty, (b) the Termination Payment described in this section is a reasonable and appropriate approximation of such damages, and (c) the Termination Payment described in this section is the exclusive remedy of the Non-Defaulting Party in connection with a Terminated Transaction but shall not otherwise act to limit any of the Non-Defaulting Party’s rights or remedies if the NonDefaulting Party does not elect a Terminated Transaction as its remedy for an Event of Default by the Defaulting Party.

4.2.b
Packet Pg. 267 Attachment: Master PPA - Council meeting attachment (Approval Related to the San Jacinto Power Choice Solar and Battery Residential 19 12.4 Notice of Payment of Termination Payment. As soon as practicable after a Terminated Transaction, Notice shall be given by the Non-Defaulting Party to the Defaulting Party of the amount of the Termination Payment and whether the Termination Payment is due to the Non-Defaulting Party. The Notice shall include a written statement explaining in reasonable detail the calculation of such amount and the sources for such calculation. The Termination Payment shall be made to the Non-Defaulting Party, as applicable, within ten (10) Business Days after such Notice is effective.

12.5 Disputes With Respect to Termination Payment. If the Defaulting Party disputes the Non-Defaulting Party’s calculation of the Termination Payment, in whole or in part, the Defaulting Party shall, within five (5) Business Days of receipt of the Non-Defaulting Party’s calculation of the Termination Payment, provide to the Non-Defaulting Party a detailed written explanation of the basis for such dispute. Disputes regarding the Termination Payment shall be determined in accordance with Article 16.

12.6 Rights And Remedies Are Cumulative. Except where liquidated damages are provided as the exclusive remedy, the rights and remedies of a Party pursuant to this Article 12 shall be cumulative and in addition to the rights of the Parties otherwise provided in this Agreement.

12.7 Mitigation. Any Non-Defaulting Party shall be obligated to mitigate its Costs, losses and damages resulting from any Event of Default of the other Party under this Agreement.

ARTICLE 13
LIMITATION OF LIABILITY AND EXCLUSION OF WARRANTIES.

13.1 No Consequential Damages. EXCEPT TO THE EXTENT PART OF AN

EXPRESS REMEDY OR MEASURE OF DAMAGES HEREIN, NEITHER PARTY SHALL BE

LIABLE TO THE OTHER OR ITS INDEMNIFIED PERSONS FOR ANY SPECIAL,

PUNITIVE, EXEMPLARY, INDIRECT, INCIDENTAL, OR CONSEQUENTIAL DAMAGES,

OR LOSSES OR DAMAGES FOR LOST REVENUE, BUSINESS INTERRUPTION OR LOST

PROFITS, WHETHER FORESEEABLE OR NOT, ARISING OUT OF, OR IN CONNECTION

WITH THIS AGREEMENT, BY STATUTE, IN TORT OR CONTRACT, UNDER ANY INDEMNITY PROVISION OR OTHERWISE.

13.2 Waiver and Exclusion of Other Damages. THE PARTIES CONFIRM THAT

THE EXPRESS REMEDIES AND MEASURES OF DAMAGES PROVIDED IN THIS AGREEMENT SATISFY THE ESSENTIAL PURPOSES HEREOF. ALL LIMITATIONS OF

LIABILITY CONTAINED IN THIS AGREEMENT, INCLUDING, WITHOUT LIMITATION, THOSE PERTAINING TO SELLER’S LIMITATION OF LIABILITY AND THE WAIVER OF

CONSEQUENTIAL DAMAGES, SHALL APPLY EVEN IF THE REMEDIES FOR BREACH OF WARRANTY PROVIDED IN THIS AGREEMENT ARE DEEMED TO “FAIL OF THEIR ESSENTIAL PURPOSE” OR ARE OTHERWISE HELD TO BE INVALID OR UNENFORCEABLE.

FOR BREACH OF ANY PROVISION FOR WHICH AN EXPRESS AND EXCLUSIVE

REMEDY OR MEASURE OF DAMAGES IS PROVIDED, SUCH EXPRESS REMEDY OR

4.2.b
Packet Pg. 268 Attachment: Master PPA - Council meeting attachment (Approval Related to the San Jacinto Power Choice Solar and Battery Residential 20 MEASURE OF DAMAGES SHALL BE THE SOLE AND EXCLUSIVE REMEDY, THE OBLIGOR’S LIABILITY SHALL BE LIMITED AS SET FORTH IN SUCH PROVISION, AND ALL OTHER REMEDIES OR DAMAGES AT LAW OR IN EQUITY ARE WAIVED.

IF NO REMEDY OR MEASURE OF DAMAGES IS EXPRESSLY PROVIDED HEREIN, THE OBLIGOR’S LIABILITY SHALL BE LIMITED TO DIRECT DAMAGES ONLY. THE

VALUE OF ANY TAX BENEFITS, DETERMINED ON AN AFTER-TAX BASIS, LOST DUE TO BUYER’S DEFAULT (WHICH SELLER HAS NOT BEEN ABLE TO MITIGATE AFTER

USE OF REASONABLE EFFORTS) AND AMOUNTS DUE IN CONNECTION WITH THE

RECAPTURE OF ANY RENEWABLE ENERGY INCENTIVES, IF ANY, SHALL BE DEEMED TO BE DIRECT DAMAGES.

TO THE EXTENT ANY DAMAGES REQUIRED TO BE PAID HEREUNDER ARE

LIQUIDATED, THE PARTIES ACKNOWLEDGE THAT THE DAMAGES ARE DIFFICULT

OR IMPOSSIBLE TO DETERMINE, THAT OTHERWISE OBTAINING AN ADEQUATE

REMEDY IS INCONVENIENT, AND THAT THE LIQUIDATED DAMAGES CONSTITUTE A REASONABLE APPROXIMATION OF THE ANTICIPATED HARM OR LOSS. IT IS THE

INTENT OF THE PARTIES THAT THE LIMITATIONS HEREIN IMPOSED ON REMEDIES

AND THE MEASURE OF DAMAGES BE WITHOUT REGARD TO THE CAUSE OR

CAUSES RELATED THERETO, INCLUDING THE NEGLIGENCE OF ANY PARTY,

WHETHER SUCH NEGLIGENCE BE SOLE, JOINT OR CONCURRENT, OR ACTIVE OR PASSIVE. THE PARTIES HEREBY WAIVE ANY RIGHT TO CONTEXT SUCH PAYMENTS AS AN UNREASONABLE PENALTY.

THE PARTIES ACKNOWLEDGE AND AGREE THAT MONEY DAMAGES AND THE

EXPRESS REMEDIES PROVIDED FOR HEREIN ARE AN ADEQUATE REMEDY FOR THE

BREACH BY THE OTHER OF THE TERMS OF THIS AGREEMENT, AND EACH PARTY

WAIVES ANY RIGHT IT MAY HAVE TO SPECIFIC PERFORMANCE WITH RESPECT TO ANY OBLIGATION OF THE OTHER PARTY UNDER THIS AGREEMENT.

ARTICLE 14
REPRESENTATIONS AND WARRANTIES; AUTHORITY

14.1 Seller’s Representations and Warranties. As of the Effective Date, Seller represents and warrants as follows:
(a) Seller is a limited liability company, duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization or formation, and is qualified to conduct business in each jurisdiction where the failure to so qualify would have a material adverse effect on the business or financial condition of Seller. (b) Seller has the power and authority to enter into and perform this Agreement and is not prohibited from entering into this Agreement or discharging and performing all covenants and obligations on its part to be performed under and pursuant to this Agreement, except where such failure does not have a material adverse effect on Seller’s performance under this Agreement. The execution, delivery and performance of this Agreement by Seller has been duly authorized by all necessary corporate action on the part of Seller and does not and will not require

4.2.b
Packet Pg. 269 Attachment: Master PPA - Council meeting attachment (Approval Related to the San Jacinto Power Choice Solar and Battery Residential 21 the consent of any trustee or holder of any indebtedness or other obligation of Seller or any other party to any other agreement with Seller.
(c) The execution and delivery of this Agreement, consummation of the transactions contemplated herein, and fulfillment of and compliance by Seller with the provisions of this Agreement will not conflict with or constitute a breach of or a default under any Law presently in effect having applicability to Seller, subject to any permits that have not yet been obtained by Seller, the documents of formation of Seller or any outstanding trust indenture, deed of trust, mortgage, loan agreement or other evidence of indebtedness or any other agreement or instrument to which Seller is a party or by which any of its property is bound. (d) This Agreement has been duly executed and delivered by Seller. This Agreement is a legal, valid and binding obligation of Seller enforceable in accordance with its terms, except as limited by laws of general applicability limiting the enforcement of creditors’ rights or by the exercise of judicial discretion in accordance with general principles of equity.

14.2 Buyer’s Effective Date Representations and Warranties. As of the Effective Date, Buyer represents and warrants as follows:
(a) Buyer is a validly existing community choice aggregator, duly organized, validly existing and in good standing under the laws of the State of California and the rules, regulations and orders of the California Public Utilities Commission. (b) Buyer has the power and authority to enter into and perform this Agreement and is not prohibited from entering into this Agreement or discharging and performing all covenants and obligations on its part to be performed under and pursuant to this Agreement, except where such failure does not have a material adverse effect on Buyer’s performance under this Agreement. The execution, delivery and performance of this Agreement by Buyer has been duly authorized by all necessary action on the part of Buyer and does not and will not require the consent of any trustee or holder of any indebtedness or other obligation of Buyer or any other party to any other agreement with Buyer.
(c) The execution and delivery of this Agreement, consummation of the transactions contemplated herein, and fulfillment of and compliance by Buyer with the provisions of this Agreement will not conflict with or constitute a breach of or a default under any Law presently in effect having applicability to Buyer, including but not limited to community choice aggregation, competitive bidding, public notice, open meetings, election, referendum, or prior appropriation requirements, the documents of formation of Buyer or any outstanding trust indenture, deed of trust, mortgage, loan agreement or other evidence of indebtedness or any other agreement or instrument to which Buyer is a party or by which any of its property is bound. (d) This Agreement has been duly executed and delivered by Buyer. This Agreement is a legal, valid and binding obligation of Buyer enforceable in accordance with its terms, except as limited by laws of general applicability limiting the enforcement of creditors’ rights or by the exercise of judicial discretion in accordance with general principles of equity. (e) (e) Buyer warrants and covenants that with respect to its contractual obligations under this Agreement, it will not claim immunity on the grounds of sovereignty or

4.2.b
Packet Pg. 270 Attachment: Master PPA - Council meeting attachment (Approval Related to the San Jacinto Power Choice Solar and Battery Residential 22 similar grounds with respect to itself or its revenues or assets from (1) suit, (2) jurisdiction of court, (3) relief by way of injunction, order for specific performance or recovery of property, (4) attachment of assets, or (5) execution or enforcement of any judgment.

14.3 General Covenants. Each Party covenants that commencing on the Effective Date and continuing throughout the Contract Term:
(a) It shall continue to be duly organized, validly existing and in good standing under the laws of the jurisdiction of its formation and to be qualified to conduct business in each jurisdiction where the failure to so qualify would have a material adverse effect on its business or financial condition;
(b) It shall maintain (or obtain from time to time as required) all regulatory authorizations necessary for it to legally perform its obligations under this Agreement; and (c) It shall perform its obligations under this Agreement in compliance with all terms and conditions in its governing documents and any contracts to which it is a party and in material compliance with any Law.

ARTICLE 15

ASSIGNMENT

15.1 General Prohibition on Assignments. Except as provided below and in Article 15, neither Seller nor Buyer may voluntarily assign its rights nor delegate its duties under this Agreement, or any part of such rights or duties, without the prior written consent of the other Party.

Neither Seller nor Buyer shall unreasonably withhold, condition or delay any requested consent to an assignment that is allowed by the terms of this Agreement so long as the proposed assignee, if of Seller, is a Qualified Assignee and agrees in writing to assume Seller’s obligations and liabilities under this Agreement upon such transfer or assignment. Any such assignment or delegation made without such written consent or in violation of the conditions to assignment set out below shall be null and void.

15.2 Permitted Assignment; Change of Control of Seller. Seller may, without the prior written consent of Buyer, transfer or assign this Agreement to: (a) an Affiliate of Seller; (b) any Person succeeding to all or substantially all of the assets of Seller (whether voluntary or by operation of law); or (c) subject to Section 16.1, a Lender as collateral, provided however, that in each of the foregoing situations, the assignee shall be a Qualified Assignee; provided, further, that in each such case, Seller shall give Notice to Buyer no fewer than fifteen (15) Business Days before such assignment that (i) notifies Buyer of such assignment and (ii) provides to Buyer a written agreement signed by the Person to which Seller wishes to assign its interests which (y) provides that such Person will assume all of Seller’s obligations and liabilities under this Agreement upon such transfer or assignment and (z) certifies that such Person shall meet the definition of a Qualified Assignee. In the event that Buyer, in good faith, does not agree that Seller’s assignee meets the definition of a Qualified Assignee, then either Seller must agree to remain financially responsible under this Agreement, or Seller’s assignee must provide payment security in an amount and form reasonably acceptable to Buyer. Any direct or indirect change of control of Seller (whether voluntary or by operation of Law) shall be deemed an assignment under this

4.2.b
Packet Pg. 271 Attachment: Master PPA - Council meeting attachment (Approval Related to the San Jacinto Power Choice Solar and Battery Residential 23 Section 15.2. Any assignment by Seller, its successors or assigns under this Section 15.2 shall be of no force and effect unless and until such Notice and agreement by the assignee have been received by Buyer.

15.3 Change of Control of Buyer. Buyer may assign its interests in this Agreement to an Affiliate of Buyer or to any entity that has acquired all or substantially all of Buyer’s assets or business, whether by merger, acquisition or otherwise without Seller’s prior written consent, provided that no fewer than fifteen (15) Business Days before such assignment Buyer (a) notifies Seller of such assignment and (b) provides to Seller a written agreement signed by the Person to which Buyer wishes to assign its interests stating that (i) such Person agrees to assume all of Buyer’s obligations and liabilities under this Agreement and under any consent to assignment and other documents previously entered into by Seller as described in Section 16.2(b)15.2(b) and (ii) such Person has the financial capability to perform all of Buyer’s obligations under this Agreement. In the event that Seller, in good faith, does not agree that Buyer’s assignee has the financial capability to perform all of Buyer’s obligations under this Agreement, then either Buyer must agree to remain financially responsible under this Agreement, or Buyer’s assignee must provide payment security in an amount and form reasonably acceptable to Seller. Any assignment by Buyer, its successors or assigns under this Section 15.3 shall be of no force and effect unless and until such Notice and agreement by the assignee have been received by Seller.

ARTICLE 16

LENDER ACCOMMODATIONS

16.1 Granting of Lender Interest. Notwithstanding Section 15.2 or Section 15.3, either Party may, without the consent of the other Party, grant an interest (by way of collateral assignment, or as security, beneficially or otherwise) in its rights and/or obligations under this Agreement to any Lender. Each Party’s obligations under this Agreement shall continue in their entirety in full force and effect. Promptly after granting such interest, the granting Party shall notify the Buyer in writing of the name, address, and telephone and facsimile numbers of any Lender to which the granting Party’s interest under this Agreement has been assigned. Such Notice shall include the names of the Lenders to whom all written and telephonic communications may be addressed. After giving the other Party such initial Notice, the granting Party shall promptly give the other Party Notice of any change in the information provided in the initial Notice or any revised Notice.

16.2 Rights of Lender. If a Party grants an interest under this Agreement as permitted by Section 16.1, the following provisions shall apply:
(a) Lender shall have the right, but not the obligation, to perform any act required to be performed by the granting Party under this Agreement to prevent or cure a default by the granting Party in accordance with Section 12.2, and such act performed by Lender shall be as effective to prevent or cure a default as if done by the granting Party. (b) The other Party shall cooperate with the granting Party or any Lender, to execute or arrange for the delivery of certificates, consents, opinions, estoppels, amendments and other documents reasonably requested by the granting Party or Lender in order to consummate any financing or refinancing and shall enter into reasonable agreements with such Lender that provide

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Packet Pg. 272 Attachment: Master PPA - Council meeting attachment (Approval Related to the San Jacinto Power Choice Solar and Battery Residential 24 that Buyer recognizes the Lender’s security interest and such other provisions as may be reasonably requested by Seller or any such Lender; provided, however, that all costs and expenses (including reasonable attorney’s fees) incurred by Buyer in connection therewith shall be borne by Seller.
(c) Each Party agrees that no Lender shall be obligated to perform any obligation or be deemed to incur any liability or obligation provided in this Agreement on the part of the granting Party or shall have any obligation or liability to the other Party with respect to this Agreement except to the extent any Lender has expressly assumed the obligations of the granting Party hereunder; provided that non-granting Party shall nevertheless be entitled to exercise all of its rights hereunder in the event that the granting Party or Lender fails to perform the granting Party’s obligations under this Agreement.

16.3 Cure Rights of Lender. The non-granting Party shall provide Notice of the occurrence of any Event of Default described in Section 12.1 or 12.2 hereof to any Lender, and such Party shall accept a cure performed by any Lender and shall negotiate in good faith with any Lender as to the cure period(s) that will be allowed for any Lender to cure any granting Party Event of Default hereunder. The non-granting Party shall accept a cure performed by any Lender so long as the cure is accomplished within the applicable cure period so agreed to between the non-granting Party and any Lender. Notwithstanding any such action by any Lender, the granting Party shall not be released and discharged from and shall remain liable for any and all obligations to the nongranting Party arising or accruing hereunder.

ARTICLE 17

DISPUTE RESOLUTION

17.1 Governing Law. This agreement and the rights and duties of the Parties hereunder shall be governed by and construed, enforced and performed in accordance with the laws of the state of California, without regard to principles of conflicts of law. Venue shall be Riverside County, California.

17.2 Dispute Resolution. In the event of any dispute arising under this Agreement, within ten (10) days following the receipt of a Notice from either Party identifying such dispute, the Parties shall meet, negotiate and attempt, in good faith, to resolve the dispute quickly, informally and inexpensively. If the Parties are unable to resolve a dispute arising hereunder within the earlier of either thirty (30) days of initiating such discussions, or within forty (40) days after Notice of the dispute, either Party may seek any and all remedies available to it at law or in equity, subject to the limitations set forth in this Agreement.

ARTICLE 18

INDEMNIFICATION

18.1 Indemnification.
(a) To the extent permitted by Law, each Party (the “Indemnifying Party”) agrees to indemnify, defend and hold harmless the other Party and its Affiliates, directors, officers, employees and agents (collectively, the “Indemnified Party”) from and against all claims, demands, losses, liabilities, penalties, and expenses (including reasonable attorneys’ fees) for

4.2.b
Packet Pg. 273 Attachment: Master PPA - Council meeting attachment (Approval Related to the San Jacinto Power Choice Solar and Battery Residential 25 personal injury or death to Persons and damage to the property of any third party to the extent arising out of, resulting from, or caused by the negligent or willful misconduct of the Indemnifying Party, its Affiliates, its directors, officers, employees, or agents in the performance of this Agreement or relating to the Systems.
(b) Nothing in this Section 18.1 shall enlarge or relieve Seller or Buyer of any liability to the other for any breach of this Agreement. Neither Party shall be indemnified for its damages resulting from its sole negligence, intentional acts or willful misconduct. These indemnity provisions shall not be construed to relieve any insurer of its obligation to pay claims consistent with the provisions of a valid insurance policy.

18.2 Claims. Promptly after receipt by a Party of any claim or notice of the commencement of any action, administrative, or legal proceeding, or investigation as to which the indemnity provided for in this Article 18 may apply, the Indemnified Party shall notify the Indemnifying Party in writing of such fact. The Indemnifying Party shall assume the defense thereof with counsel designated by such Party and satisfactory to the Indemnified Party, provided, however, that if the defendants in any such action include both the Indemnified Party and the Indemnifying Party and the Indemnified Party shall have reasonably concluded that there may be legal defenses available to it which are different from or additional to, or inconsistent with, those available to the Indemnifying Party, the Indemnified Party shall have the right to select and be represented by separate counsel, at the Indemnifying Party’s expense, unless a liability insurer is willing to pay such costs. If the Indemnifying Party fails to assume the defense of a claim meriting indemnification, the Indemnified Party may at the expense of the Indemnifying Party contest, settle, or pay such claim, provided that settlement or full payment of any such claim may be made only following consent of the Indemnifying Party or, absent such consent, written opinion of the Indemnified Party’s counsel that such claim is meritorious or warrants settlement. Except as otherwise provided in this Article 18, in the event that a Party is obligated to indemnify and hold the other Party and its successors and assigns harmless under this Article 18, the amount owing to the Indemnified Party will be the amount of the Indemnified Party’s damages net of any insurance proceeds received by the Indemnified Party following a reasonable effort by the Indemnified Party to obtain such insurance proceeds.

ARTICLE 19

INSURANCE

19.1 Insurance.
(a) General Liability. Seller shall maintain, or cause to be maintained at its sole expense, (i) commercial general liability insurance, including products and completed operations and personal injury insurance, in a minimum amount of one million dollars ($1,000,000) per occurrence, and an annual aggregate of not less than two million dollars ($2,000,000), endorsed to provide contractual liability in said amount, specifically covering Seller’s obligations under this Agreement and naming Buyer as an additional insured; and (ii) an umbrella insurance policy in a minimum limit of liability of five million dollars ($5,000,000). Defense costs shall be provided as an additional benefit and not included within the limits of liability. Such insurance shall contain standard cross-liability and severability of interest provisions.

4.2.b
Packet Pg. 274 Attachment: Master PPA - Council meeting attachment (Approval Related to the San Jacinto Power Choice Solar and Battery Residential 26 (b) Employer’s Liability Insurance. Employers’ Liability insurance shall not be less than one million dollars ($1,000,000.00) for injury or death occurring as a result of each accident. With regard to bodily injury by disease, the one million-dollar ($1,000,000) policy limit will apply to each employee.
(c) Workers Compensation Insurance. Seller, if it has employees, shall also maintain at all times during the Contract Term workers’ compensation and employers’ liability insurance coverage in accordance with applicable requirements of Law. (d) Business Auto Insurance. Seller shall maintain at all times during the Contract Term business auto insurance for bodily injury and property damage with limits of one million dollars ($1,000,000) per occurrence. Such insurance shall cover liability arising out of Seller’s use of all owned (if any), non-owned and hired vehicles, including trailers or semi-trailers in the performance of the Agreement.
(e) Construction All-Risk Insurance. Seller shall maintain or cause to be maintained during the construction of the System prior to the Commercial Operation Date, construction all-risk form property insurance covering the System during such construction periods, and naming the Seller (and Lender if any) as the loss payee. (f) Subcontractor Insurance. Seller shall require all of its subcontractors to carry: (i) comprehensive general liability insurance with a combined single limit of coverage not less than one million dollars ($1,000,000); (ii) workers’ compensation insurance and employers’ liability coverage in accordance with applicable requirements of Law; and (iii) business auto insurance for bodily injury and property damage with limits of one million dollars ($1,000,000) per occurrence. All subcontractors shall name Seller and Buyer as an additional insured to insurance carried pursuant to clauses (f)(i) and (f)(iii). All subcontractors shall provide a primary endorsement and a waiver of subrogation to Seller for the required coverage pursuant to this Section 19.1(f).
(g) Evidence of Insurance. Seller shall deliver to Buyer certificates of insurance evidencing such coverage prior to the execution of this Agreement. These certificates shall specify that Buyer shall be given at least thirty (30) days prior Notice by Seller in the event of any material modification, cancellation or termination of coverage. Such insurance shall be primary coverage without right of contribution from any insurance of Buyer. Any other insurance maintained by Seller is for the exclusive benefit of Seller and shall not in any manner inure to the benefit of Buyer. Seller shall also comply with all insurance requirements by any renewable energy or other incentive program administrator or any other applicable authority. (h) Failure to Comply with Insurance Requirements. If Seller fails to comply with any of the provisions of this Article 19, Seller, among other things and without restricting Buyer’s remedies under the law or otherwise, shall, at its own cost and expense, act as an insurer and provide insurance in accordance with the terms and conditions above. With respect to the required general liability, umbrella liability and commercial automobile liability insurance, Seller shall provide a current, full and complete defense to Buyer, its subsidiaries and affiliates, and their respective officers, directors, shareholders, agents, employees, assigns, and successors in interest, in response to a third-party claim in the same manner that an insurer would have, had the insurance

4.2.b
Packet Pg. 275 Attachment: Master PPA - Council meeting attachment (Approval Related to the San Jacinto Power Choice Solar and Battery Residential 27 been maintained in accordance with the terms and conditions set forth above. In addition, alleged violations of the provisions of this Article 19 means that Seller has the initial burden of proof regarding any legal justification for refusing or withholding coverage and Seller shall face the same liability and damages as an insurer for wrongfully refusing or withholding coverage in accordance with the laws of California.

ARTICLE 20

CONFIDENTIAL INFORMATION

20.1 Definition of Confidential Information. The following constitutes “Confidential Information,” whether oral or written which is delivered by Seller to Buyer or by Buyer to Seller including: (a) proposals and negotiations until this Agreement is approved and executed by the Buyer, and (b) information that either Seller or Buyer stamps or otherwise identifies as “confidential” or “proprietary” before disclosing it to the other. Confidential Information does not include (i) information that was publicly available at the time of the disclosure, other than as a result of a disclosure in breach of this Agreement; (ii) information that becomes publicly available through no fault of the recipient after the time of the delivery; (iii) information that was rightfully in the possession of the recipient (without confidential or proprietary restriction) at the time of delivery or that becomes available to the recipient from a source not subject to any restriction against disclosing such information to the recipient; and (iv) information that the recipient independently developed without a violation of this Agreement.

20.2 Duty to Maintain Confidentiality. Confidential Information will retain its character as Confidential Information but may be disclosed by the recipient if and to the extent such disclosure is required (a) to be made by any requirements of Law, including but not limited to the California Public Records Act (Government Code Section 6250 et seq.) and the Brown Act (Government Code Section 54950 et seq.), (b) pursuant to an order of a court or (c) in order to enforce this Agreement. The originator or generator of Confidential Information may use such information for its own uses and purposes, including the public disclosure of such information at its own discretion.

20.3 Irreparable Injury; Remedies. Buyer and Seller each agree that disclosing Confidential Information of the other in violation of the terms of this Article 20 may cause irreparable harm, and that the harmed Party may seek any and all remedies available to it at law or in equity, including injunctive relief and/or notwithstanding Section 13.2, consequential damages.

20.4 Disclosure to Lender. Notwithstanding anything to the contrary in this Article 20, Confidential Information may be disclosed by Seller to any potential Lender or any of its agents, consultants or trustees so long as the Person to whom Confidential Information is disclosed agrees in writing to be bound by the confidentiality provisions of this Article 20 to the same extent as if it were a Party.

ARTICLE 21

MISCELLANEOUS

21.1 Entire Agreement; Integration; Exhibits. This Agreement, together with Exhibits attached hereto constitutes the entire agreement and understanding between Seller and

4.2.b
Packet Pg. 276 Attachment: Master PPA - Council meeting attachment (Approval Related to the San Jacinto Power Choice Solar and Battery Residential 28 Buyer with respect to the subject matter hereof and supersedes all prior agreements relating to the subject matter hereof, which are of no further force or effect. The Exhibits attached hereto are integral parts hereof and are made a part of this Agreement by reference. The headings used herein are for convenience and reference purposes only. In the event of a conflict between the provisions of this Agreement and those of any Exhibit, the provisions of this Agreement shall prevail, and such Exhibit shall be corrected accordingly. This Agreement shall be considered for all purposes as prepared through the joint efforts of the Parties and shall not be construed against one Party or the other as a result of the preparation, substitution, submission or other event of negotiation, drafting or execution hereof.

21.2 Amendments. This Agreement may only be amended, modified or supplemented by an instrument in writing executed by duly authorized representatives of Seller and Buyer; provided, that, for the avoidance of doubt, this Agreement may not be amended by electronic mail communications.

21.3 No Waiver. Waiver by a Party of any default by the other Party shall not be construed as a waiver of any other default.

21.4 No Agency, Partnership, Joint Venture or Lease. Seller and the agents and employees of Seller shall, in the performance of this Agreement, act in an independent capacity and not as officers or employees or agents of Buyer. Under this Agreement, Seller and Buyer intend to act as energy service provider and energy service recipient, respectively, and do not intend to be treated as, and shall not act as, partners in, co-venturers in or lessor/lessee with respect to the System or any business related to the System. This Agreement shall not impart any rights enforceable by any third party (other than a permitted successor or assignee bound to this Agreement).

21.5 Severability. In the event that any provision of this Agreement is unenforceable or held to be unenforceable, the Parties agree that all other provisions of this Agreement have force and effect and shall not be affected thereby. The Parties shall, however, use their best endeavors to agree on the replacement of the void, illegal or unenforceable provision(s) with legally acceptable clauses which correspond as closely as possible to the sense and purpose of the affected provision and this Agreement as a whole.

21.6 Forward Contract. The Parties acknowledge and agree that this Agreement and the transactions contemplated by this Agreement constitute a “forward contract” within the meaning of the Bankruptcy Code and that Buyer and Seller are each “forward contract merchants” within the meaning of the Bankruptcy Code

21.7 Mobile-Sierra. Notwithstanding any other provision of this Agreement, neither Party shall seek, nor shall they support any third party seeking, to prospectively or retroactively revise the rates, terms or conditions of service of this Agreement through application or complaint to FERC pursuant to the provisions of Section 205, 206 or 306 of the Federal Power Act, or any other provisions of the Federal Power Act, absent prior written agreement of the Parties. Further, absent the prior written agreement in writing by both Parties, the standard of review for changes to the rates, terms or conditions of service of this Agreement proposed by a Party, a non-Party or the FERC acting sua sponte shall be the “public interest” standard of review set forth in United

4.2.b
Packet Pg. 277 Attachment: Master PPA - Council meeting attachment (Approval Related to the San Jacinto Power Choice Solar and Battery Residential 29 Gas Pipe Line Co. v. Mobile Gas Service Corp., 350 U.S. 332 (1956) and Federal Power Commission v. Sierra Pacific Power Co., 350 U.S. 348 (1956).

21.8 Counterparts. This Agreement may be executed in one or more counterparts, all of which taken together shall constitute one and the same instrument and each of which shall be deemed an original.

21.9 Facsimile or Electronic Delivery. This Agreement may be duly executed and delivered by a Party by execution and facsimile or electronic format (including portable document format (.pdf)) delivery of the signature page of a counterpart to the other Party, and, if delivery is made by facsimile or other electronic format, the executing Party shall promptly deliver, via overnight delivery, a complete original counterpart that it has executed to the other Party, but this Agreement shall be binding on and enforceable against the executing Party whether or not it delivers such original counterpart.

21.10 Binding Effect. This Agreement shall inure to the benefit of and be binding upon the Parties and their respective successors and permitted assigns. [remainder of this page intentionally left blank]

4.2.b
Packet Pg. 278 Attachment: Master PPA - Council meeting attachment (Approval Related to the San Jacinto Power Choice Solar and Battery Residential IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their duly authorized representatives as of the Effective Date.

SELLER
Participate.Energy LLC
a Delaware limited liability company
By:

Name:

Title:

BUYER

CITY OF SAN JACINTO, A CALIFORNIA

MUNICIPAL CORPORATION, D/B/A SAN

JACINTO POWER
By:

Name:

Title: _____________________

4.2.b
Packet Pg. 279 Attachment: Master PPA - Council meeting attachment (Approval Related to the San Jacinto Power Choice Solar and Battery Residential A
-1

EXHIBIT A

INCLUDED SYSTEMS LIST
SYSTEM
NAME
or
ID
SYSTEM
SITE
ADDRESS or

LOCATION
SYSTEM
SYSTEM
SIZE
(kWAC)

ESTIMATED

FIRST YEAR
ANNUAL

PRODUCTION
(kWh)

FIRST YEAR
ENERGY
RATE
ENERGY

STORAGE
(No. of Tesla
Powerwall Units)

4.2.b
Packet Pg. 280 Attachment: Master PPA - Council meeting attachment (Approval Related to the San Jacinto Power Choice Solar and Battery Residential B
-1

EXHIBIT B

NOTICES
Seller:

Participate.Energy LLC
2093 Philadelphia Pike #3125,
Claymont, DE 19703.

Attn: Ethan Friedman
Phone: 917-301-2621
Email: [email protected]
Buyer:

San Jacinto Power
595 S. San Jacinto Avenue
San Jacinto, CA 92583
Attn: Contract Administration
Email: [email protected]
With a copy to: With a copy to:

Name:

Attorney for Buyer
Address:

Phone:

Facsimile:

Email:

Scheduling:

Participate.Energy LLC
2093 Philadelphia Pike #3125,
Claymont, DE 19703.

Attn: Ethan Friedman
Phone: 917-301-2621
Email: [email protected]

4.2.b
Packet Pg. 281 Attachment: Master PPA - Council meeting attachment (Approval Related to the San Jacinto Power Choice Solar and Battery Residential C
-1

EXHIBIT C

EMERGENCY CONTACT INFORMATION
BUYER:

Robert Johnson
595 S. San Jacinto Avenue
San Jacinto, CA 92583
Email: [email protected]
WITH COPY TO:

Cathy DeFalco, Energy Manager - Regulatory
California Choice Energy Authority (“CalChoice”)
Phone: 805-260-9047
Email: [email protected]
SELLER:

Participate.Energy LLC
2093 Philadelphia Pike #3125,
Claymont, DE 19703.

Attn: Ethan Friedman
Phone: 917-301-2621
Email: [email protected]

4.2.b
Packet Pg. 282 Attachment: Master PPA - Council meeting attachment (Approval Related to the San Jacinto Power Choice Solar and Battery Residential

PROGRAM MANAGEMENT AGREEMENT
This Program Management Agreement (this “Agreement”) dated effective as of [February 1, 2023], (the “Effective Date”) is by and between CITY OF SAN JACINTO, A CALIFORNIA MUNICIPAL CORPORATION, D/B/A SAN JACINTO POWER (“Program Manager”), and Participate.Energy LLC, a Delaware limited liability company (the “Owner”). The parties hereto are sometimes herein referred to individually as a “Party” and collectively as the “Parties”.

RECITALS
A. Program Manager, Owner and Tesla, Inc. (“Installer”) have entered in to certain agreements for the creation of a distributed solar and energy storage program for residential electricity customers in Program Manager’s service territory (the” Program”). Under the terms of the Program, Owner will develop, finance, and own residential solar and energy storage systems to be located at private residences within Program Manager’s service territory (each a “System” or, collectively, the “Systems”), Installer will install the Systems under an installation contract between Installer and Owner (“Installation Contract”), and Program Manager will buy from Owner the energy and certain energy attributes and benefits generated by each System under the terms of a certain power purchase agreement between the Parties of even date herewith (the “Power Purchase Agreement”).

B. Owner does not independently maintain the internal capability to perform the Program Management Services (as defined below) that Owner requires in connection with the installation of the Systems, and Program Manager’s capabilities are expected to provide significant benefits to Owner. Therefore, Owner desires to engage Program Manager to manage certain aspects of the System permit management, Installer communication, and origination of potential customers in Program Manager’s service territory, all as further set forth herein (the “Program Management Services”).

C. In consideration of the mutual covenants and agreements herein contained, and for other good and valuable consideration, the sufficiency and adequacy of which are hereby acknowledged, the Parties agree to the following:

AGREEMENT
In consideration of the above recitals, the premises and mutual covenants set forth herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties, intending to be legally bound, hereby agree as follows:

1. Appointment and Term; Assumption of Development Responsibilities; Standard of Performance. Owner hereby appoints Program Manager to render the Program Management Services as further described in the Schedule of Program Management Services attached hereto as Exhibit A. Program Manager hereby accepts such appointment. The term of this Agreement shall be co-terminus with the term of the Power Purchase Agreement (“Term”).

Program Manager shall use such diligence, care and prudence in the performance of its obligations

4.2.c
Packet Pg. 283 Attachment: Program Management Agreement - Council meeting attachment (Approval Related to the San Jacinto Power Choice Solar and 2 hereunder as are commercially reasonable, and shall devote such time, effort and skills of its personnel as reasonably possible.

2. Limitations and Restrictions. Notwithstanding any provisions of this Agreement, Program Manager shall not take any action, expend any sum, make any decision, give any consent, approval or authorization, or incur any obligation with respect to any of the following matters unless and until the same has been approved by Owner:
(a) alteration of any System contemplated by the Installation Contract, except for such matters as may be expressly delegated in writing to Program Manager by Owner; (b) any proposed change in the installation of a System, or in the plans and specifications therefor as previously approved by Owner, that increases the cost thereof, or any other change that would affect the design, cost, value or quality of any of a System, except for such matters as may be expressly delegated in writing to Program Manager by Owner.

3. Standard of Conduct.
a) Program Manager shall provide the Program Management Services, perform its other obligations and exercise its rights or powers under this Agreement in a prudent manner, and in accordance with: (i) any applicable laws and regulations; and (ii) any agreement, instrument or other document to which Owner is a party, and that Owner has delivered to Program Manager, that relates to a System or any component thereof (“Project Documents”), except to the extent Owner provides Program Manager with written instructions not to do so in the event Owner is contesting in good faith the validity or application of any such applicable laws and regulations or such term and condition of a System Document, in any reasonable manner. b) Program Manager may, at any time, if it reasonably considers it to be necessary or appropriate, request written instruction from Owner with respect to any matter contemplated by this Agreement and may defer action thereon pending the receipt of such written instructions.
c) Program Manager shall advise Owner promptly, if it becomes aware of any material inconsistency between any of the following:
(i) Owner’s instructions given in accordance with this Agreement from time to time;
(ii) any System Document;
(iii) required insurance (if any); and
(iv) any applicable laws and regulations or Permit.
d) Any action taken by Program Manager in accordance with the written instructions of Owner, or failure to act pending the receipt of such written instructions, shall be deemed to be within the scope of Program Manager’s authority and in accordance with its

4.2.c
Packet Pg. 284 Attachment: Program Management Agreement - Council meeting attachment (Approval Related to the San Jacinto Power Choice Solar and 3 obligations under this Agreement and, without limitation, shall not constitute gross negligence or willful misconduct as referred in Section 10(b).

4. Accounts and Records.
(a) Program Manager, shall keep such books of account and other records relating to each System as may be required by applicable laws and regulations or as reasonably requested by Owner in writing. All accounts and records relating to a System, including all correspondence, shall be surrendered to Owner upon demand without charge therefor. (b) All books and records prepared or maintained by Program Manager shall be kept and maintained at all times at secure locations accessible to Owner for audit, inspection and copying by Owner or any representative or auditor therefor or supervisory or regulatory authority upon reasonable written request.
(c) During the Term, Program Manager shall keep Owner reasonably informed as to the status of the Program Management Services provided by Program Manager. Program Manager shall notify Owner in writing of any material event related to the Program Management Services provided by Program Manager hereunder.

5. Accrual Schedule. The Program Management Agreement Fee (as defined below) shall be earned in full for a System when a System is placed in service for purposes of Sections 48 and 168 of the Internal Revenue Code, as amended, and shall be paid promptly when a System has reached final completion under the terms of the respective Installation Contract (collectively, “Final Completion”).

6. Compensation. As consideration for Program Manager’s Program Management Services to be performed under this Agreement, Owner will pay Program Manager a fee (the “Program Management Agreement Fee”) equal to Forty U.S. Cents ($0.40) multiplied by each Watt/dc of solar generating capacity for each System that has reached Final Completion and for which Program Manager has confirmed in a legally binding manner that such System will be covered under the Power Purchase Agreement for the term thereof. The Program Support Services Fee shall become due and payable on a quarterly basis, not later than the thirtieth (30th) day after the end of each calendar quarter during the Term.

7. Default and Remedies. If Program Manager defaults in the performance of any of its material covenants or obligations under this Agreement and such default continues unremedied for a period of 30 days after written notice thereof from Owner to Program Manager, Owner shall have the right, at its election, to exercise one or more of the following rights and remedies; provided, however, if the default is of such a nature that it cannot be cured within the 30-day period, and Program Manager has begun to cure each default within the 30-day period, Program Manager shall have an additional 60 days in which to cure said default provided it acts in good faith and with due diligence to cure the same (all of which shall be cumulative); provided, further, however, that a default under any agreement with a contractor, subcontractor, engineer or equipment Program Manager for a System, or a delay due to action or inaction by the utility shall not be deemed a default under the Agreement:
(a) terminate this Agreement; and

4.2.c
Packet Pg. 285 Attachment: Program Management Agreement - Council meeting attachment (Approval Related to the San Jacinto Power Choice Solar and 4 (b) enforce the provisions of this Agreement by legal proceedings for the specific performance of any covenant or agreement contained herein or for the enforcement of any other appropriate legal or equitable remedy and recover damages caused by any breach by Program Manager of the provisions of this Agreement, including court costs, reasonable attorneys’ fees and other expenses incurred in the enforcement of the obligations of Program Manager hereunder; and (c) exercise any and all rights and remedies that Owner (or its Members) may have under applicable laws and regulations; and
(d) in addition to any rights now or hereafter granted under applicable laws and regulations and not by way of limitation of any such rights, upon the occurrence of any event of default hereunder that is not cured within the time period specified in this Section 7, Owner is authorized to set off and to apply any amounts payable to Program Manager hereunder against and on account of the obligations of Program Manager to Owner hereunder.

8. Indemnity and Liability
(a) Limitation of Liability.
(i) Notwithstanding any provision in this Agreement to the contrary, neither Party, nor their respective Affiliates, nor any of their respective officers, directors, employees, agents, contractors, subcontractors, vendors, shareholders, members, partners or representatives, shall be liable hereunder for any consequential or indirect loss or damage, including loss of profit, cost of capital, loss of goodwill or any other special or incidental damages, it being understood that the Parties’ indemnification obligations under this Section 8 are not and shall not be deemed to be consequential or indirect loss or damage under this Section 8. (ii) Except as provided in this Section 8, Program Manager shall have no liability hereunder to Owner for damages or other amounts in connection with a breach by Program Manager of this Agreement or a failure by Program Manager to perform the Program Management Services in accordance with the terms and conditions hereof or otherwise as a result of the Program Management Services performed by Program Manager pursuant to this Agreement. (iii) The Parties further agree that the waivers and disclaimers of liability, indemnities, releases from liability, and limitations on liability expressed in this Agreement shall survive termination or expiration of this Agreement, and shall apply at all times, whether in contract, equity, tort or otherwise, even in the event of the fault, negligence, including sole negligence, strict liability, or breach of the Party indemnified, released or whose liabilities are limited, and shall extend to the partners, members, principals, shareholders, directors, officers, employees and agents of each Party and its Affiliates.
(b) Indemnity. To the extent it may lawfully do so, each of Program Manager and Owner hereby indemnify, defend (with counsel of its choosing), and hold harmless the other party and its directors, agents, officers, members, employees and volunteers from and against any and all liability or claim of liability, loss or expense, including defense costs and legal fees and claims for damages of whatsoever character, nature and kind, whether directly or indirectly arising from or connected to: bodily injury, death, personal injury, or property damage to the extent caused by negligence, creation or maintenance of a dangerous condition of property, or intentional

4.2.c
Packet Pg. 286 Attachment: Program Management Agreement - Council meeting attachment (Approval Related to the San Jacinto Power Choice Solar and 5 infliction of harm, including any workers’ compensation suits, liability, or expense, arising from or connected with Program Management Services performed by on behalf of the indemnifying party by any person pursuant to this Agreement; nonpayment for labor, materials, appliances, teams, or power, performed on, or furnished or contributed to the Site. Notwithstanding the above, neither Program Manager nor Owner shall be required to defend, indemnify and hold harmless the other for such other party’s negligent acts and omissions or willful misconduct. It is the intent of the Parties that where negligence is determined to have been joint or contributory, principles of comparative negligence will be followed, and each Party shall bear the proportionate cost of any loss damage, expense or liability attributable to that Party’s negligence.

9. Notices. Any notice, request, demand or other communication which is required or permitted under this Agreement shall be in writing and shall be deemed to have been duly given:
(i) on the date of receipt by the applicable Party if personally delivered; (ii) when transmitted by the applicable Party if transmitted by telecopy, electronic mail, or other digital transmission method, subject to the sender’s facsimile machine receiving the correct answerback of the addressee and confirmation of uninterrupted transmission by a transmission report or the recipient confirming by telephone to sender that he has received the facsimile or electronic mail message; and (iii) when received by the applicable Party, if sent for next day delivery to a domestic address by recognized overnight delivery service or, if sent by certified or registered mail, return receipt requested.

Notices shall be given:

If to Owner, to:

Participate.Energy LLC
2093 Philadelphia Pike #3125,
Claymont, DE 19703.

Attn: Ethan Friedman
Phone: 917-301-2621
Email: [email protected]
If to Program Manager, to:

San Jacinto Power
595 S. San Jacinto Avenue
San Jacinto, CA 92583
Attn: Contract Administration
Email: [email protected]

10. General Provisions.
(a) No Agency Relationship. This Agreement does not create an agency relationship between the Parties and does not establish a joint venture or partnership between the parties. Except as expressly set forth herein, neither party has the authority to bind the other party or represent to any person that the party is an agent of the other party.

4.2.c
Packet Pg. 287 Attachment: Program Management Agreement - Council meeting attachment (Approval Related to the San Jacinto Power Choice Solar and 6 (b) Agreement. This Agreement consists of the terms and conditions set forth herein, as well as the appendices hereto, which are incorporated by reference herein and made part hereof.

In the event of a conflict, variation or inconsistency between the appendices hereto and the terms and conditions contained in the body of this Agreement, the latter shall control and be given priority.
(c) Relationship of the Parties.
(i) Program Manager has been retained by Owner as an independent contractor to solely perform the Program Management Services on behalf of Owner. (ii) Without limiting the relationship of any Party under any other agreement, nothing contained or implied in this Agreement shall constitute or be deemed to constitute any Party as the partner of any other Party for any purpose whatsoever; or create, or be deemed to create, any partnership between any Party and the any other Party. (iii) No Party shall by virtue of this Agreement have the power or authority to enter into any agreement or undertaking for or to act on behalf of or otherwise to bind the any other Party as to any matter or thing to be done in relation to a System or to the provision of the Program Management Services save as may be expressly authorized in this Agreement or agreed in writing between the Parties from time to time.
(d) Entire Agreement. This Agreement, the Schedules and Exhibits attached hereto contains the entire agreement between the Parties with respect to the subject matter hereof and supersedes all prior negotiations, undertakings and agreements. Neither Party will be bound by or deemed to have made in connection herewith any representations, warranties, commitments or undertakings, except those contained herein.
(e) Captions; Exhibits. Titles or captions of sections contained in this Agreement are inserted only as a matter of convenience and for reference, and in no way define, limit, extend, describe or otherwise affect the scope or meaning of this Agreement or the intent of any provision hereof. All exhibits and appendices attached hereto shall be considered a part hereof as though fully set forth herein.
(f) Amendment. This Agreement may not be amended or modified in any way unless such amendment or modification is in writing signed by duly authorized representatives of each Party.
(g) No Waivers. It is understood and agreed that any delay, waiver or omission by Owner or Program Manager to exercise any right or power arising from any breach or default by Owner or Program Manager with respect to any of the terms, provisions, or covenants of this Agreement shall not be construed to be a waiver by Owner or Program Manager of any subsequent breach or default of the same or other terms, provisions or covenants on the part of Owner or Program Manager. No waiver of any right or power by any Party under this Agreement shall be deemed effective unless in writing and signed by the waiving Party.

4.2.c
Packet Pg. 288 Attachment: Program Management Agreement - Council meeting attachment (Approval Related to the San Jacinto Power Choice Solar and 7 (h) Changed Conditions; Invalidity. If there is an occurrence of an event of Force Majeure, there is a material change in market conditions affecting the prices of goods and Program Management Services constituting Development Costs, there is a change in any Project Document or financing document or Owner enters into a new Project Document or financing document affecting performance of the Program Management Services hereunder, or there is a change in any applicable Law, and any such performance or occurrence results in increased or decreased costs to Program Manager, or Owner, as the case may be, shall be entitled to an equitable budget adjustment reflecting the reasonable value of any such increased or decreased costs from such performance or occurrence, and the Parties hereby agree to adjust equitably such other provisions of this Agreement that are directly affected by such performance or occurrence; provided, however, that such adjustments must be consistent with the economic expectations and the intent of the Parties and agreed to in writing by the Parties. The invalidity or unenforceability for public policy or other equitable grounds of any provision of this Agreement shall be determined only by a court of competent jurisdiction, and the Parties hereby agree to negotiate an equitable adjustment to the invalid or unenforceable provisions with a view toward affecting the purposes of this Agreement. The validity or enforceability of the remaining provisions or portions or applications hereof shall not be affected thereby.
(i) Representations and Warranties.
(i) Each Party represents and warrants to the other that:
(A) it is duly formed and validly existing under the laws of its jurisdiction of formation;
(B) it has the legal right and full power and authority to execute and deliver, and to exercise its rights and perform its obligations under, this Agreement; (C) all corporate or company action required by it validly and duly to authorize the execution and delivery of, and to exercise its rights and perform its obligations under, this Agreement has been duly taken; and
(D) this Agreement constitutes a valid and binding agreement enforceable against it in accordance with its terms.
(ii) Except as expressly provided in this Agreement or as required by law, no Party makes any warranties or guarantees to the other, either express or implied, with respect to the System, Program Management Services or any other subject matter of this Agreement, and, to the extent permitted by law, each Party disclaims and waives any implied warranties or warranties imposed by law.
(j) Counterparts. The Parties may execute this Agreement in two or more counterparts, which shall, in the aggregate, be signed by the Parties and each counterpart shall be deemed an original instrument as against any Party who has signed it.

4.2.c
Packet Pg. 289 Attachment: Program Management Agreement - Council meeting attachment (Approval Related to the San Jacinto Power Choice Solar and 8 (k) Facsimile or Electronic Delivery. This Agreement may be duly executed and delivered by a Party by execution and facsimile or electronic format (including portable document format (.pdf)) delivery of the signature page of a counterpart to the other Party, and, if delivery is made by facsimile or other electronic format, the executing Party shall promptly deliver, via overnight delivery, a complete original counterpart that it has executed to the other Party, but this Agreement shall be binding on and enforceable against the executing Party whether or not it delivers such original counterpart.
(l) Dispute Resolution. In the event a dispute arises between the Parties regarding the application or interpretation of this Agreement, the aggrieved Party shall promptly notify the other Party of its intent to invoke this dispute resolution procedure within ten (10) business days after such dispute arises. If the Parties shall fail to resolve the dispute within ten (10) business days after delivery of such notice, each Party shall, within five (5) business days thereafter, nominate a senior officer of its management to meet at a mutually agreed location, to resolve the dispute. If the dispute remains unresolved within ten (10) business days after such a meeting has commenced, each Party, without further delay, shall have the right to pursue any and all remedies available at law or in equity. The pendency of any dispute under this Agreement shall not of itself relieve any Party of any duty to perform under this Agreement.
(m) Non-Recourse. Notwithstanding anything to the contrary provided in this Agreement, it is specifically understood and agreed that there shall be absolutely no personal liability on the part of any of the partners, members, shareholders, or affiliates of the Parties, or any of their respective directors, officers, employees, agents or representatives, (each, a “Protected Person”) for the payment of any amounts due or the performance of any other obligation of any Party under this Agreement. Each Party shall look solely to the assets of the other Parties for the satisfaction of each and every right or remedy under or in connection with this Agreement. In furtherance of the foregoing, Owner and Program Manager each agrees that it shall neither seek or obtain, nor be entitled to seek or obtain, any deficiency or other judgment against any Protected Person for any action or inaction under or in connection with this Agreement, and Owner and Program Manager each releases all such Protected Persons from any such claims by Program Manager or Owner, as the case may be.
[Signature Page Follows]

4.2.c
Packet Pg. 290 Attachment: Program Management Agreement - Council meeting attachment (Approval Related to the San Jacinto Power Choice Solar and [Signature Page to Program Management Agreement]
IN WITNESS WHEREOF, the Parties have executed this Program Management Agreement as of the date first written above.

PROGRAM MANAGER:

City of San Jacinto,
a California municipal corporation,
d/b/a San Jacinto Power
By: ____________________________
Name: ___________________________
Title: ___________________________
OWNER:

Participate.Energy LLC
a Delaware limited liability company
By: ____________________________
Name: ___________________________
Title: ___________________________

4.2.c
Packet Pg. 291 Attachment: Program Management Agreement - Council meeting attachment (Approval Related to the San Jacinto Power Choice Solar and

EXHIBIT A

PROGRAM MANAGEMENT SERVICES SCHEDULE
Program Management Services generally include all activities necessary or helpful to (a) monitor, manage, and accelerate to the extent feasible all permitting activities for any System;
(c) create a streamlined and integrated System permitting process allowing for faster System permitting;
(d) effectively communicate with and guide Installer through the System permitting process to ensure shorter permitting timelines and to avoid any permitting delays; (e) effectively coordinate the System permitting process with all other governmental agencies involved;
(f) to the extent legally permissible, expedite the permitting for any System; and (d) prepare materials and conduct communications and outreach to residential electric power customer in its service territory to promote the Program and to encourage the installation of Systems by its customers.

4.2.c
Packet Pg. 292 Attachment: Program Management Agreement - Council meeting attachment (Approval Related to the San Jacinto Power Choice Solar and

PROGRAM SUPPORT AGREEMENT
This Program Support Agreement (this “Agreement”) dated effective as of December 1, 2022, (the “Effective Date”) is by and between CITY OF SAN JACINTO, A CALIFORNIA MUNICIPAL CORPORATION, D/B/A SAN JACINTO POWER (“Member”), and Participate.Energy LLC, a Delaware limited liability company (the “Owner”). The parties hereto are sometimes herein referred to individually as a “Party” and collectively as the “Parties”.

RECITALS
A. Member, Owner and Tesla, Inc. (“O&M Provider”) have entered in to certain agreements for the creation of a distributed solar and energy storage program for residential electricity customers in Member’s service territory (the “Program”). Under the terms of the Program, Owner will develop, finance, and own residential solar and energy storage systems to be located at private residences within Member’s service territory (each a “System” or, collectively, the “Systems”), O&M Provider will operate and maintain the Systems under an O&M Contract between O&M Provider and Owner (the “O&M Contract”), Member will buy from Owner the energy and certain energy attributes and benefits generated by each System under the terms of a certain power purchase agreement between the Parties of even date herewith (the “Power Purchase Agreement”), and sell the electric power generated by a System to the residential customer in Member’s service territory, where the System is located (the “Customer”).

B. Member and Owner intend that Systems will be added to this Agreement and the Power Purchase Agreement from time to time during the term of the Power Purchase Agreement.

C. Owner does not independently maintain the internal capability to perform the Program Support Services (as defined below) that Owner requires in connection with the operation and maintenance of the Systems, and Member’s capabilities are expected to provide significant benefits to Owner. Therefore, Owner desires to engage Member to support certain aspects of the Systems operations and management as further set forth herein (the “Program Support Services”).

D. In consideration of the mutual covenants and agreements herein contained, and for other good and valuable consideration, the sufficiency and adequacy of which are hereby acknowledged, the Parties agree to the following:

AGREEMENT
In consideration of the above recitals, the premises and mutual covenants set forth herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties, intending to be legally bound, hereby agree as follows:

1. Appointment and Term; Assumption of Development Responsibilities; Standard of Performance. Owner hereby appoints Member to render the Program Support Services as further described in the Schedule of Program Support Services attached hereto as Exhibit A. Member hereby accepts such appointment. The term of this Agreement shall be coterminus with the term of the Power Purchase Agreement (“Term”). Member shall use such

4.2.d
Packet Pg. 293 Attachment: Program Support Service Agreement - Council meeting attachment (Approval Related to the San Jacinto Power Choice Solar and 2 diligence, care and prudence in the performance of its obligations hereunder as are commercially reasonable, and shall devote such time, effort and skills of its personnel as reasonably possible.

2. Standard of Conduct.
a) Member shall provide the Program Support Services, perform its other obligations and exercise its rights or powers under this Agreement in a prudent manner, and in accordance with: (i) any applicable laws and regulations and permits; and (ii) any agreement, instrument or other document to which Owner is a party, and that Owner has delivered to Member, that relates to the development, construction, Owner or a System or any component thereof (“System Documents”), except to the extent Owner provides Member with written instructions not to do so in the event Owner is contesting in good faith the validity or application of any such applicable laws and regulations or such term and condition of a System Document, in any reasonable manner.
b) Member may, at any time, if it reasonably considers it to be necessary or appropriate, request written instruction from Owner with respect to any matter contemplated by this Agreement and may defer action thereon pending the receipt of such written instructions. c) Member shall advise Owner promptly, if it becomes aware of any material inconsistency between any of the following:
(i) Owner’s instructions given in accordance with this Agreement from time to time;
(ii) any System Document;
(iii) required insurance (if any); and
(iv) any applicable laws and regulations or permit.
d) Any action taken by Member in accordance with the written instructions of Owner, or failure to act pending the receipt of such written instructions, shall be deemed to be within the scope of Member’s authority and in accordance with its obligations under this Agreement and, without limitation, shall not constitute gross negligence or willful misconduct as referred in Section 7.

3. Accounts and Records.
(a) Member, on behalf of Owner, shall keep such books of account and other records relating to each System as may be required by applicable laws and regulations or reasonably requested by Owner in writing. All accounts and records relating to a System, including all correspondence, shall be surrendered to Owner upon demand without charge therefor. (b) All books and records prepared or maintained by Member shall be kept and maintained at all times at secure locations accessible to Owner for audit, inspection and copying by Owner or any representative or auditor therefor or supervisory or regulatory authority upon reasonable written request.

4.2.d
Packet Pg. 294 Attachment: Program Support Service Agreement - Council meeting attachment (Approval Related to the San Jacinto Power Choice Solar and 3 (c) During the Term, Member shall keep Owner informed as to the status of the Program Support Services provided by Member hereunder in a frequency Member and Owner may agree to from time to time. Member shall notify Owner of any material event related to the Program Support Services provided by Member hereunder.

4. Compensation and Payment.
(a) As consideration for Member’s Program Support Services to be performed under this Agreement, Owner will pay Member a fee (the “Program Support Services Fee”) equal to (i) Two U.S. Cents ($0.02) multiplied by each Kilowatt-hour of solar energy generation for each System that has been placed into operation and for which Member has confirmed in a legally binding manner that such System will be covered under the Power Purchase Agreement for the term thereof, plus (ii) Fifteen Dollars ($15.00) per month for each Tesla Powerwall installed as part of a System that has been placed into operation and for which Member has confirmed in a legally binding manner that such System will be covered under the Power Purchase Agreement for the term thereof.
(b) The Program Support Services Fee shall become due and payable on a quarterly basis, not later than the fifteenth (15th) day after the end of each calendar quarter during the Term (each, a “Fee Calculation Period”), provided, that payment of any Program Support Services Fee due and payable shall be limited to funds available to Owner from Net Operating Cash Flow during such Fee Calculation Period. The term “Net Operating Cash Flow” as used in this Agreement shall mean the cash proceeds received by Owner under the terms of the Power Purchase Agreement during a Fee Calculation Period, reduced by (i) actual or reasonably estimated operating and maintenance expenses for all Systems in operation at any time during such Fee Calculation Period, including, without limitation insurance expenses and reasonably estimated reserves for loses, and actual or reasonably estimated System equipment replacement costs during the Term and reserves therefore, (ii) actual or reasonably estimated income or other taxes payable by Buyer with respect to such cash proceeds (iii) preferred distributions to be made and any cash flow payable, or revenue or profit participation allocated to tax or sponsor equity investors unaffiliated with Owner in accordance with the terms and conditions of the then current charter documents of Owner, and (iv) payment of all obligations, including without limitation payment of principal and interest, under any loan document binding Owner at any time during such Fee Calculation Period, or for which any System operating at any time during such Fee Calculation Period has been placed as collateral.
(c) Together with any Program Support Services Fee payment, Owner shall provide Member a written accounting for the Program Support Fee due in reasonable detail. In addition, if payment for a Fee Calculation Period is reduced to available funds for payment for the respective Fee Calculation Period in accordance with Section 4(b), above, Owner shall provide Member a written accounting in reasonable detail supporting any fee reduction during such Fee Calculation Period.
(d) Any portion of the Program Support Services Fee reduced during one Fee Calculation Period in accordance with Section 4(b), above, shall be added to the Program Support Services Fee becoming due and payable in the following Fee Commented [CH1]: BBK: This agreement is very similar
to the Program Management Agreement, however, this
agreement limits payment to the City based on the Net
Operating Cash Flow. Deletions below are to reflect following the payment structure of the other agreement.

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Packet Pg. 295 Attachment: Program Support Service Agreement - Council meeting attachment (Approval Related to the San Jacinto Power Choice Solar and 4 Calculation Period subject, however, to availability funds from Net Operating Cash Flow during such following Fee Calculation Period.
(e) To facilitate payment and verification, Owner shall maintain all books and records necessary for billing and payments, including copies of all invoices under this Agreement, for a period of at least two (2) years or as otherwise required by applicable laws and regulations.

Upon fifteen (15) days’ notice to Owner, Member shall be granted reasonable access to the accounting books and records pertaining to all invoices generated pursuant to this Agreement. (f) Payment adjustments shall be made if Owner or Member discovers there have been good faith inaccuracies in invoicing that are not otherwise disputed under Section 4(h), or there is determined to have been a meter inaccuracy sufficient to require a payment adjustment under the Power Purchase Agreement. If the required adjustment is in favor of Owner, Owner’s quarterly Program Support Services Fee payment shall be credited in an amount equal to the adjustment. If the required adjustment is in favor of Member, Member shall add the adjustment amount to Owner’s next quarterly Program Support Fee payment obligation, subject, however, to the limitations set forth in Section 4(b), above.
(g) If a payment due date under Section 4(b), above, falls on a weekend or legal holiday, such due date shall be the next business day. Payments made after the due date will be considered late and will bear interest on the unpaid balance, except, however, any payment reduction applied during a Fee Calculation Period, if paid during the next available Fee Calculation Period during which funds available to Owner from Net Operating Cash Flow first allow payment of the reduced amount. If the amount due is not paid on or before the due date or if any other payment that is due and owing from one party to another is not paid on or before its applicable due date, a late payment charge shall be applied to the unpaid balance and shall be added to the next billing statement. Such late payment charge shall be calculated based on an annual interest rate equal to 10% (the “Interest Rate”) of the total amount due. If the due date occurs on a day that is not a business day, the late payment charge shall begin to accrue on the next succeeding business day. The payment of any late payment fee by Owner shall be subject to availability of funds from Net Operating Cash Flow.
(h) A Party may, in good faith, dispute the correctness of any invoice or any adjustment to an invoice, rendered under this Agreement or adjust any invoice for any arithmetic or computational error within twelve (12) months of the date the invoice, or adjustment to an invoice, was rendered. In the event an invoice or portion thereof, or any other claim or adjustment arising hereunder, is disputed, payment of the undisputed portion of the invoice shall be required to be made when due. Any invoice dispute or invoice adjustment shall be in writing and shall state the basis for the dispute or adjustment. Payment of the disputed amount shall not be required until the dispute is resolved. Upon resolution of the dispute, any required payment shall be made within two (2) business days of such resolution along with interest accrued at the Interest Rate from and including the original due date to but excluding the date paid. Inadvertent overpayments shall be returned upon request or deducted by the Party receiving such overpayment from subsequent payments, with interest accrued at the Interest Rate from and including the date of such overpayment to but excluding the date repaid or deducted by the Party receiving such

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Packet Pg. 296 Attachment: Program Support Service Agreement - Council meeting attachment (Approval Related to the San Jacinto Power Choice Solar and 5 overpayment. Any dispute with respect to an invoice is waived if the other Party is not notified in accordance with this Section 4(h) within twelve (12) months after the invoice is rendered or subsequently adjusted, except to the extent any misinformation was from a third party not affiliated with any Party and such third party corrects its information after the twelve-month period. If an invoice is not disputed within twelve (12) months after the close of the month during which performance occurred, the right to payment for such performance is waived.

5. Default and Remedies. If either Party defaults in the performance of any of its material covenants or obligations under this Agreement and such default continues unremedied for a period of (a) ten (10) days, in case of any monetary default, or (b) thirty (30) days in case of nonmonetary default, in each after written notice thereof from the non-defaulting Party to the defaulting Party, the non-defaulting Party shall have the right, at its election, to exercise one or more of the following rights and remedies; provided, however, if a non-monetary default is of such a nature that it cannot be cured within said thirty (30) day period, and the defaulting Party has begun to cure each default within the 30-day period, the defaulting Party shall have an additional 60 days in which to cure said default provided it acts in good faith and with due diligence to cure the same (all of which shall be cumulative); provided, further, however, that a default under any agreement with a contractor, subcontractor, engineer or equipment manager for a System, or a delay due to action or inaction by the utility shall not be deemed a default under the Agreement:
(a) terminate this Agreement; and
(b) enforce the provisions of this Agreement by legal proceedings for the specific performance of any covenant or agreement contained herein or for the enforcement of any other appropriate legal or equitable remedy and recover damages caused by any breach by the defaulting Party of the provisions of this Agreement, including court costs, reasonable attorneys’ fees and other expenses incurred in the enforcement of the obligations of the Defaulting Party hereunder; and
(c) exercise any and all rights and remedies that the non-defaulting Party may have under applicable laws and regulations; and
(d) in addition to any rights now or hereafter granted under applicable laws and regulations and not by way of limitation of any such rights, upon the occurrence of any event of default hereunder that is not cured within the time period specified in this Section 5, the nondefaulting Party is authorized to set off and to apply any amounts payable to the defaulting Party hereunder against and on account of the obligations of defaulting Party to the non-defaulting Party hereunder.

6. Indemnity and Liability
(a) Limitation of Liability.
(i) Notwithstanding any provision in this Agreement to the contrary, neither Party, nor their respective Affiliates, nor any of their respective officers, directors, employees, agents, contractors, subcontractors, vendors, shareholders, members, partners or representatives, shall be liable hereunder for any consequential or indirect loss or damage,

4.2.d
Packet Pg. 297 Attachment: Program Support Service Agreement - Council meeting attachment (Approval Related to the San Jacinto Power Choice Solar and 6 including loss of profit, cost of capital, loss of goodwill or any other special or incidental damages, it being understood that the Parties’ indemnification obligations under this Section 6 are not and shall not be deemed to be consequential or indirect loss or damage under this Section 6. (ii) Except as provided in this Section 6, Member shall have no liability hereunder to Owner for damages or other amounts in connection with a breach by Member of this Agreement or a failure by Member to perform the Program Support Services in accordance with the terms and conditions hereof or otherwise as a result of the Program Support Services performed by Member pursuant to this Agreement.
(iii) The Parties further agree that the waivers and disclaimers of liability, indemnities, releases from liability, and limitations on liability expressed in this Agreement shall survive termination or expiration of this Agreement, and shall apply at all times, whether in contract, equity, tort or otherwise, even in the event of the fault, negligence, including sole negligence, strict liability, or breach of the Party indemnified, released or whose liabilities are limited, and shall extend to the partners, members, principals, shareholders, directors, officers, employees and agents of each Party and its Affiliates.
(b) Indemnity. To the extent it may lawfully do so, each of Member and Owner hereby indemnify, defend (with counsel of its choosing), and hold harmless the other party and its directors, agents, officers, members, employees and volunteers from and against any and all liability or claim of liability, loss or expense, including defense costs and legal fees and claims for damages of whatsoever character, nature and kind, whether directly or indirectly arising from or connected to: bodily injury, death, personal injury, or property damage to the extent caused by negligence, creation or maintenance of a dangerous condition of property, or intentional infliction of harm, including any workers’ compensation suits, liability, or expense, arising from or connected with Program Support Services performed by on behalf of the indemnifying party by any person pursuant to this Agreement; nonpayment for labor, materials, appliances, teams, or power, performed on, or furnished or contributed to the Site. Notwithstanding the above, neither Member nor Owner shall be required to defend, indemnify and hold harmless the other for such other party’s negligent acts and omissions or willful misconduct. It is the intent of the Parties that where negligence is determined to have been joint or contributory, principles of comparative negligence will be followed, and each Party shall bear the proportionate cost of any loss damage, expense or liability attributable to that Party’s negligence.

7. Notices. Any notice, request, demand or other communication which is required or permitted under this Agreement shall be in writing and shall be deemed to have been duly given: (i) on the date of receipt by the applicable Party if personally delivered; (ii) when transmitted by the applicable Party if transmitted by telecopy, electronic mail, or other digital transmission method, subject to the sender’s facsimile machine receiving the correct answerback of the addressee and confirmation of uninterrupted transmission by a transmission report or the recipient confirming by telephone to sender that he has received the facsimile or electronic mail message; and (iii) when received by the applicable Party, if sent for next day delivery to a domestic address by recognized overnight delivery service or, if sent by certified or registered mail, return receipt requested.

Notices shall be given:

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Packet Pg. 298 Attachment: Program Support Service Agreement - Council meeting attachment (Approval Related to the San Jacinto Power Choice Solar and 7 If to Owner, to:

Participate.Energy LLC
2093 Philadelphia Pike #3125,
Claymont, DE 19703.

Attn: Ethan Friedman
Phone: 917-301-2621
Email: [email protected]
If to Member, to:

San Jacinto Power
595 S. San Jacinto Avenue
San Jacinto, CA 92583
Attn: Contract Administration
Email: [email protected]

8. General Provisions.
(a) No Agency Relationship. This Agreement does not create an agency relationship between the Parties and does not establish a joint venture or partnership between the parties. Except as expressly set forth herein, neither party has the authority to bind the other party or represent to any person that the party is an agent of the other party. (b) Agreement. This Agreement consists of the terms and conditions set forth herein, as well as the appendices hereto, which are incorporated by reference herein and made part hereof.

In the event of a conflict, variation or inconsistency between the appendices hereto and the terms and conditions contained in the body of this Agreement, the latter shall control and be given priority.
(c) Relationship of the Parties.
(i) Member has been retained by Owner as an independent contractor to solely perform the Program Support Services on behalf of Owner. (ii) Without limiting the relationship of any Party under any other agreement, nothing contained or implied in this Agreement shall constitute or be deemed to constitute any Party as the partner of any other Party for any purpose whatsoever; or create, or be deemed to create, any partnership between any Party and the any other Party. (iii) No Party shall by virtue of this Agreement have the power or authority to enter into any agreement or undertaking for or to act on behalf of or otherwise to bind the any other Party as to any matter or thing to be done in relation to a System or to the provision of the Program Support Services save as may be expressly authorized in this Agreement or agreed in writing between the Parties from time to time.

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Packet Pg. 299 Attachment: Program Support Service Agreement - Council meeting attachment (Approval Related to the San Jacinto Power Choice Solar and 8 (d) Entire Agreement. This Agreement, the Schedules and Exhibits attached hereto contains the entire agreement between the Parties with respect to the subject matter hereof and supersedes all prior negotiations, undertakings and agreements. Neither Party will be bound by or deemed to have made in connection herewith any representations, warranties, commitments or undertakings, except those contained herein.
(e) Captions; Exhibits. Titles or captions of sections contained in this Agreement are inserted only as a matter of convenience and for reference, and in no way define, limit, extend, describe or otherwise affect the scope or meaning of this Agreement or the intent of any provision hereof. All exhibits and appendices attached hereto shall be considered a part hereof as though fully set forth herein.
(f) Amendment. This Agreement may not be amended or modified in any way unless such amendment or modification is in writing signed by duly authorized representatives of each Party.
(g) No Waivers. It is understood and agreed that any delay, waiver or omission by Owner or Member to exercise any right or power arising from any breach or default by Owner or Member with respect to any of the terms, provisions, or covenants of this Agreement shall not be construed to be a waiver by Owner or Member of any subsequent breach or default of the same or other terms, provisions or covenants on the part of Owner or Member. No waiver of any right or power by any Party under this Agreement shall be deemed effective unless in writing and signed by the waiving Party.
(h) Changed Conditions; Invalidity. If there is an occurrence of an event of Force Majeure, there is a material change in market conditions affecting the prices of goods and Program Support Services constituting Development Costs, there is a change in any Project Document or financing document or Owner enters into a new Project Document or financing document affecting performance of the Program Support Services hereunder, or there is a change in any applicable Law, and any such performance or occurrence results in increased or decreased costs to Member, or Owner, as the case may be, shall be entitled to an equitable budget adjustment reflecting the reasonable value of any such increased or decreased costs from such performance or occurrence, and the Parties hereby agree to adjust equitably such other provisions of this Agreement that are directly affected by such performance or occurrence; provided, however, that such adjustments must be consistent with the economic expectations and the intent of the Parties and agree to in writing by the Parties. The invalidity or unenforceability for public policy or other equitable grounds of any provision of this Agreement shall be determined only by a court of competent jurisdiction, and the Parties hereby agree to negotiate an equitable adjustment to the invalid or unenforceable provisions with a view toward affecting the purposes of this Agreement. The validity or enforceability of the remaining provisions or portions or applications hereof shall not be affected thereby.
(i) Representations and Warranties.