San Marino City Council
December 13, 2023

AGENDA – DECEMBER 13, 2023 PAGE 1 of 589

CITY OF SAN MARINO

CITY COUNCIL AGENDA
Steve Talt, Mayor
Steven W. Huang, DDS, Vice Mayor
Tony Chou, Council Member
Calvin Lo, Council Member
Gretchen Shepherd Romey, Council Member
Philippe Eskandar, City Manager
www.CityofSanMarino.org
(626) 300-0700 Phone
City Hall Council Chamber
2200 Huntington Drive
San Marino, CA 91108

REGULAR MEETING OF THE

SAN MARINO CITY COUNCIL
WEDNESDAY, DECEMBER 13, 2023 AT 6:00 PM

CITY HALL COUNCIL CHAMBERS
2200 HUNTINGTON DRIVE
SAN MARINO, CA 91108
The City of San Marino appreciates your attendance. Citizens’ interest provides the Council with valuable information regarding issues of the community.

Regular meetings are held on the 2nd Wednesday of every month at 6:00 p.m. Typically, adjourned meetings are held on the last Friday of every month at 8:30 a.m.

In compliance with the Americans with Disabilities Act, any person with a disability who requires a reasonable modification or accommodation in order to participate in a meeting should contact the City Clerk via email at [email protected] or by phone at (626) 300-0705 prior to the meeting for assistance.

The public is welcome to attend the meeting in person or remotely via Zoom, however, the meeting will proceed as normal even if there are technical difficulties with Zoom. The City will do it’s best to resolve any technical issues as quickly as possible.

How to view or listen to the meeting from home:

Visit www.CityofSanMarino.org/Zoom
How to offer public comment from home:

Public comment will be accepted by email to [email protected] until 3:00 p.m. the day of the meeting. Written public comment received by 3:00 p.m. will be distributed to City Council during the meeting. Any comments received after 3:00 AGENDA – DECEMBER 13, 2023 PAGE 2 of 589
p.m. will be included in the public comment record but not provided to City Council at the meeting.

Written public comment will be accepted electronically via the zoom.us teleconference module during the meeting. Written Zoom comments will be accepted after the in-person comments.

CALL TO ORDER

PLEDGE OF ALLEGIANCE

ROLL CALL
Council Member Chou, Council Member Lo, Council Member Shepherd Romey, Vice Mayor Huang, and Mayor Talt

POSTING OF AGENDA
The agenda is posted 72 hours prior to each meeting at the following locations: City Hall, 2200 Huntington Drive, the Crowell Public Library, 1890 Huntington Drive, and the Stoneman Building, 1560 Pasqualito Drive. The agenda is also posted on the City’s website:
http://www.cityofsanmarino.org.

PUBLIC COMMENTS
The City welcomes public input. Members of the public may address the City Council by completing a public comment card and giving it to the City Clerk prior to the meeting. At this time, the public may address the City Council on items that are not on the agenda.

Pursuant to state law, the City Council may not discuss or take action on issues not on the meeting agenda (Government Code Section 54954.2). The Mayor reserves the right to place limits on duration of comments. Staff may be asked to follow up on such items.

CITY MANAGER'S REPORT
This is an opportunity for the City Manager to inform the City Council and the public of any upcoming events or matters of interest to the community.

MOTION TO WAIVE FURTHER READINGS
This action permits the City Council to act on ordinances and resolutions without having to read the entire text of the ordinance or resolution. The title of an ordinance on First Reading must be read in its entirety. An ordinance on Second Reading does not require having the title read. However, the City Council may request that an ordinance or resolution be read in its entirety before taking any action.

AGENDA – DECEMBER 13, 2023 PAGE 3 of 589

CEREMONIAL

PRESENTATION OF CITY TILE TO, AND REMARKS FROM, OUTGOING

MAYOR STEVE TALT

REORGANIZATION OF THE CITY COUNCIL BY SELECTING A MAYOR AND

VICE MAYOR

REMARKS FROM THE NEWLY APPOINTED MAYOR

PUBLIC HEARINGS

1. ADOPTION OF RESOLUTION NO. R-23-31 ADOPTING THE COMMUNITY DEVELOPMENT BLOCK GRANT PROJECT FOR FISCAL YEAR 2024-25 Recommendation: Staff recommends the City Council conduct a public hearing to consider the use of CDBG funds for the Senior Outreach Program and ADA compliant Sidewalk Replacement Program in FY 2024-25. If the City Council concurs with staff’s recommendation, the appropriate motion, after the hearing, would be:
“I move to adopt Resolution No. R-23-31, a Resolution of the City Council of the City of San Marino, California adopting the projected use of funds from the Community Development Block Grant program for Fiscal Year 2024-25.”

NEW BUSINESS

2. RECEIVE AND FILE FINANCIAL REPORT FOR FIRST QUARTER (JULY 2023 THROUGH SEPTEMBER 2023)
Recommendation: Staff recommends that Council receive and file this report. If the City Council concurs with staff’s recommendation, an appropriate motion would be:
“I move to receive and file the financial report reflecting the City’s revenues and expenditures as of September 30, 2023.”

3. RECEIVE AND FILE ANNUAL COMPREHENSIVE FINANCIAL REPORT (ANNUAL AUDIT) FOR THE FISCAL YEAR ENDED JUNE 30, 2023
Recommendation: Staff recommends that this annual financial statement be received and filed. If the City Council concurs with staff’s recommendation, an appropriate motion would be:
“I move to receive and file the audited financial statements for the fiscal year ended June 30, 2023.”
AGENDA – DECEMBER 13, 2023 PAGE 4 of 589

CONSENT CALENDAR

4. APPROVAL OF CONTRACT FOR IT CONSULTING/MANAGEMENT

SERVICES WITH SDI PRESENCE, LLC
Recommendation: Staff recommends that the City Council approve a three-year professional services agreement with an option to extend the contract for two more years with SDI Presence, LLC for Information Technology Consulting/Management Services. If the Council concurs with staff’s recommendation, an appropriate motion would be:
“I move to approve a three-year professional services agreement with an option to extend the contract for two more years with SDI Presence, LLC for Information Technology Consulting/Management Services and authorize the City Manager to exercise the future option under the contract in his discretion, subject to satisfactory performance and Council budget appropriation.”

5. APPROVAL OF PURCHASE FOR FIRE DEPARTMENT SELF-CONTAINED

BREATHING APPARATUS AND FILL STATION
Recommendation: Staff recommends the Council waive competitive bidding and (1) approve the purchase of 3M Scott self-contained breathing apparatus from Allstar Fire Equipment in the amount of $224,238.28; and (2) approve the purchase of a Stallion Air Centaur fill station from L.N. Curtis in the amount of $82,686.39. If the Council concurs with staff’s recommendation, an appropriate motion would be:
“I move to waive competitive bidding and (1) approve the purchase of 3M Scott selfcontained breathing apparatus from Allstar Fire Equipment in the amount of $224,238.28; and (2) approve the purchase of a Stallion Air Centaur fill station from L.N. Curtis in the amount of $82,686.39.”

6. APPROVAL OF PURCHASE OF ONE POLICE VEHICLE FROM NATIONAL AUTO FLEET IN THE AMOUNT OF $64,810.58
Recommendation: Staff recommends the City Council approve the purchase of one Police Department vehicle from National Auto Fleet in the amount of $64,810.58. “I move to approve the purchase of one Police Department vehicle from National Auto Fleet in the amount of $64,810.58.”

7. APPROVAL TO PROCURE AND INSTALL NEW IRRIGATION
CONTROLLERS FOR LACY PARK IN THE AMOUNT OF $43,595
Recommendation: Staff recommends the City Council approve the procurement and installation of two irrigation controllers from Imperial Sprinkler Supply in the amount of $43,595.
“I move to approve the procurement and installation of two irrigation controllers from Imperial Sprinkler Supply in the amount of $43,595.”
AGENDA – DECEMBER 13, 2023 PAGE 5 of 589

8. APPROVAL OF PROFESSIONAL SERVICES AGREEMENT WITH ATLAS

PLANNING SOLUTIONS FOR LOCAL HAZARD MITIGATION PLAN

PREPARATION SERVICES
Recommendation: Staff recommends the Council approve a professional services agreement with Atlas Planning Solutions for Local Hazard Mitigation Plan preparation services. If the Council concurs with staff’s recommendation, an appropriate motion would be:
“I move to approve a professional services agreement with Atlas Planning Solutions for Local Hazard Mitigation Plan preparation services.”

9. APPROVAL OF 2024 LACY PARK MAJOR SPECIAL EVENT PERMIT

DATES AND CO-SPONSORSHIP REQUESTS
Recommendation: Staff recommends the Council approve the 2024 Lacy Park Special Event Permit Dates and Fee Requests. It the City Council concurs with staff’s recommendation, an appropriate motion would be:
”I move to approve the 2024 Lacy Park Special Event Permit Dates and CoSponsorship Requests.”

10. APPOINTMENT TO THE BOARD OF TRUSTEES OF THE GREATER LOS

ANGELES COUNTY VECTOR CONTROL DISTRICT
Recommendation: The Mayor recommends the Council appoint Howard Brody as the City’s representative to the Great Los Angeles County Vector Control District Board of Trustees to serve a two (2) year term. If the City Council concurs with staff’s recommendation, an appropriate motion would be :
”I move to appoint Howard Brody to serve on the Board of Trustees for the Greater Los Angeles Vector Control District for a two (2) year term ending January 1, 2026.

11. CASH AND INVESTMENT REPORT FOR THE MONTH OF OCTOBER 2023
Recommendation: Staff recommends the Council receive and file this report. If the City Council concurs with staff’s recommendation, an appropriate motion would be:
“I move to receive and file the Cash and Investment Report for the Month of October 2023.”

12. RECEIVE AND FILE MONTHLY DISBURSEMENTS REPORT FOR
NOVEMBER 2023
Recommendation: Staff recommends the Council receive and file the Monthly Disbursements Report for the month of November 2023. If the City Council concurs with staff’s recommendation, an appropriate motion would be:

AGENDA – DECEMBER 13, 2023 PAGE 6 of 589
“I move to receive and file the Monthly Disbursements Report for the month of November 2023.”

13. APPROVAL OF NOTICE OF COMPLETION FOR STREET
REHABILITATION PROJECT NO. 21-9271
Recommendation: Staff recommends that the City Council accept the street rehabilitation project as complete and authorize the City Clerk to file the Notice of Completion. If the City Council concurs with staff’s recommendation, an appropriate motion would be:
“I move to accept Street Rehabilitation Project No. 21-9271 as complete and authorize the City Clerk to file the Notice of Completion.”

14. SCHEDULED VACANCIES FOR COMMISSIONS, COMMITTEES, AND BOARDS FOR CALENDAR YEAR 2024
Recommendation: Staff recommends the Council accept and file the Local Appointments List for all City commissions, committees, and boards for calendar year 2024, and direct the City Clerk to post the list.

15. REQUEST TO CAST VOTES FOR THE SAN GABRIEL BASIN WATER

QUALITY AUTHORITY BOARD OF DIRECTORS
Recommendation: Staff recommends the Council vote in favor of Rosemead City Council Member Margaret Clark. If Council concurs, the appropriate action would be:
“I move to approve the vote in favor of Rosemead City Councilmember Margaret Clark to the San Gabriel Basin Water Quality Authority Board of Directors and adopt Resolution No. R-23-32, A Resolution of the City Council of the City of San Marino, California, Casting its Vote for Councilmember Margaret Clark to Represent Cities without Prescriptive Pumping Rights on the Board of the San Gabriel Basin Water Quality Authority.”

16. WINTER 2023 PUBLIC TREE REMOVAL LIST
Recommendation: This is an informational item. Therefore, no action is required by City Council.

17. APPROVAL OF MINUTES
Recommendation: Staff recommends the Council approve the November 2023 minutes. If the City Council concurs with staff’s recommendation, an appropriate motion would be:
“I move to approve the minutes of the special meeting of November 8, 2023, and the regular meeting of November 8, 2023.”
AGENDA – DECEMBER 13, 2023 PAGE 7 of 589

18. ADOPTION OF ORDINANCE NO. O-23-1409 (SECOND READING) ADDING MUNICIPAL CODE SECTION 23.05.03 REGARDING

DEVELOPMENT STANDARDS AND OBJECTIVE DESIGN STANDARDS

FOR MULTI-FAMILY RESIDENTIAL DEVELOPMENT PROJECTS IN THE

HISTORICAL AND CULTURAL ZONE
Recommendation: Staff recommends the Council adopt Ordinance No. O-23-1409. If the City Council concurs with staff’s recommendation an appropriate motion would be:
“I move to adopt Ordinance No. O-23-1409, an Ordinance of the San Marino City Council adding San Marino Municipal Code Section 23.05.03 regarding development standards and objective design standards for multi-family residential development projects in the Historical and Cultural Zone.”

WRITTEN COMMUNICATIONS OR PUBLIC WRITINGS DISTRIBUTION
This is an opportunity to announce any written communications pertaining to the City received by members of the City Council. All public writings distributed by the City of San Marino to at least a majority of the City Council regarding any item on this agenda will be made available at the Public Counter at City Hall located at 2200 Huntington Drive, San Marino, California 91108, and will also be included in the public agenda packet that will available for review at the City Council meeting.

PUBLIC COMMENTS

FUTURE AGENDA ITEMS

ADJOURNMENT
Posted: 12/8/2023 ALISON WALKER

CITY CLERK
City Manager’s Report and
Operational Dashboard
December 13, 2023
PAGE 8 of 589
City Manager’s Report and Operational
Dashboard
December 13, 2023

105
92 97
80 114
0 20
40 60
80 100
120
140
Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
In-City Incidents
FY 22-23 FY 23-24
86 93 97
81 75
0 20
40 60
80 100
120
140
Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
Out-of-City Incidents
FY 22-23 FY 23-24
Fire
Fiscal Year 22-23 Total: 1,120 Current Fiscal Year-to-Date Total: 374 Fiscal Year 22-23 Total: 1,146 Current Fiscal Year-to-Date Total: 357 PAGE 9 of 589
City Manager’s Report and Operational
Dashboard
December 13, 2023

1 1 1
0 4
0 1
2 3
4 5
Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
Emergency Medical Services - Cardiac Arrests
FY 22-23 FY 23-24
0 0 0 0
1 0
1 2
3 Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
Emergency Medical Services - Return of Spontaneous Circulation FY 22-23 FY 23-24
Fire
Fiscal Year 22-23 Total: 19 Current Fiscal Year-to-Date Total: 3 Fiscal Year 22-23 Total: 4 Current Fiscal Year-to-Date Total: 0 PAGE 10 of 589
City Manager’s Report and Operational
Dashboard
December 13, 2023

0:00:56
0:01:07 0:00:59 0:00:53 0:00:58
0:00:00
0:00:43
0:01:26
Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
90th Percentile Response Time: EMS Turnout
FY 22-23 FY 23-24
0:01:27
0:01:06
0:01:24 0:01:28 0:01:21
0:00:00
0:00:43
0:01:26
0:02:10
Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
90th Perentile Response Time: Fire Turnout
FY 22-23 FY 23-24
0:05:45 0:06:06
0:07:04
0:05:57 0:06:10
0:02:53
0:07:12
0:11:31
Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
90th Percentile Response Time: Overall Response
FY 22-23 FY 23-24
The San Marino Fire Department has adopted the National Fire Protection Association (NFPA) 1710 standards for response time reporting. NFPA standards represent aspirational goals for Fire Departments. By measuring response in percentiles rather than averages, the Fire Department is able to more accurately measure performance of responding units. The time reported as the 90th percentile turnout or response time means that 90% of incidents were as fast, or faster, than the reported time.

Fire
Fiscal Year 22-23 Response Rate: 59 sec Current Fiscal Year Response Rate: 59 sec Fiscal Year 22-23 Response Rate: 1 min 15 sec Current Fiscal Year Response Rate: 1 min and 21 sec Fiscal Year 22-23 Response Rate: 5 min 59 sec Current Fiscal Year Response Rate: 6 min and 13 sec Turnout Time - the amount of time after dispatch for firefighters to don safety equipment and start vehicle response.

Overall Response Time - the total amount of time it takes to respond to an incident, from initial dispatch to arriving on scene.

PAGE 11 of 589
City Manager’s Report and Operational
Dashboard
December 13, 2023

5 8
4 4
8 0
5 10
Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
Residential Burglaries
FY 22-23 FY 23-24
7 7 6 7
9 0
5 10
15 20
Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
Larcenies
FY 22-23 FY 23-24
Police
Fiscal Year 22-23 Total: 65 Current Year-to-Date Total: 21 Fiscal Year 22-23 Total: 117 Current Year-to-Date Total: 27 Burglary - the act of entering a premise with the intent of committing a felony or stealing property.

Larceny - the unlawful removal of property. Any person who feloniously steals, takes, carries, leads or drives away the personal property of another is guilty of larceny theft by either misdemeanor of felony larceny.

PAGE 12 of 589
City Manager’s Report and Operational
Dashboard
December 13, 2023

262
168 186 164
234
0 100
200
300
Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
Traffic Citations Issued
FY 22-23 FY 23-24
2 4
7 8
5 0
5 10
Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May June
Community Meetings
FY 22-23 FY 23-24
Fiscal Year 22-23 Total: 2,061 Current Year-to-Date Total: 780 Fiscal Year 22-23 Total: 22 Current Year-to-Date Total: 21 Police
PAGE 13 of 589
City Manager’s Report and Operational
Dashboard
December 13, 2023

92 91
70 104
62 0
50 100
150
Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
Building Permits Issued
FY 22-23 FY 23-24
5 7
7 11
5 0
5 10
15 20
Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
Tree Removal Permits Issued
FY 22-23 FY 23-24
2 2 2
4 2
0 2
4 6
8 Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
New Business Licenses
FY 22-23 FY 23-24
Community Development
Fiscal Year 22-23 Total: 905 Current Year-to-Date Total: 357 Fiscal Year 22-23 Total: 87 Current Year-to-Date Total: 30 Fiscal Year 22-23 Total: 35 Current Year-to-Date Total: 10 PAGE 14 of 589
City Manager’s Report and Operational
Dashboard
December 13, 2023

3 5
2 4
3 0
5 10
Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
ADU Permits Issued
FY 22-23 FY 23-24
1 1 0
6 4
0 5
10 Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
ADU Applications Submitted
FY 22-23 FY 23-24
82 105 105 87
65 0
50 100
150
Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
Open Code Enforcement Cases
FY 22-23 FY 23-24
Community Development
Fiscal Year 22-23 Total: 41 Current Year-to-Date Total: 14 Fiscal Year 22-23 Total: 52 Current Year-to-Date Total: 8 Fiscal Year 22-23 Average per Month: 69 Current Year-to-Date Average per Month: 95 PAGE 15 of 589
City Manager’s Report and Operational
Dashboard
December 13, 2023

53 22
54 61
42 0
50 100
150
Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
Programs Offered
FY 22-23 FY 23-24
10836
2159 1,709 3,306
999
0 5,000
10,000
15,000
Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
Participants
FY 22-23 FY 23-24
25 19
30 38
28 0
10 20
30 40
Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
Rental Bookings
FY 23-24
Community Services
Fiscal Year 22-23 Total: 609 Current Year-to-Date Total: 190 Fiscal Year 22-23 Total: 632,065 Current Year-to-Date Total: 18,010 Current Year-to-Date Total: 112
PAGE 16 of 589
City Manager’s Report and Operational
Dashboard
December 13, 2023

10,588 11,052 10,075 9,915 11,284
0 5,000
10,000
15,000
20,000
Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
Library Circulation Total
FY 22-23 FY 23-24
9,369 9,756 8,995 8,858 10,160
1,219 1,296
1,080 1,057
1,124
0 2,000
4,000
6,000
8,000
10,000
12,000
Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
FY 2023-24 Library Circulation Breakdown
In-Person Digital
Fiscal Year 22-23 Total: 139,989 Current Year-to-Date Total: 41,630 Community Services
PAGE 17 of 589
City Manager’s Report and Operational
Dashboard
December 13, 2023

$107,342
$1,753,659
$245,823 $1,063,216$250,913
$0
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
Revenues
FY 22-23 FY 23-24
$5,024,667
$2,818,718
$4,167,689
$2,218,894
$2,423,389
$0
$2,000,000
$4,000,000
$6,000,000
$8,000,000
Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
Expenses
FY 22-23 FY 23-24
$83,280
$129,118
$172,397
$140,343 $153,925
$0
$50,000
$100,000
$150,000
$200,000
Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
Overtime Expenses
FY 22-23 FY 23-24
Finance
Fiscal Year 22-23 Total: $35,311,777 Year-to-Date Total: $2,682,214 Fiscal Year 22-23 Total: $38,790,100 Year-to-Date Total: $14,070,673 Fiscal Year 22-23 Total: $1,466,556 Year-to-Date Total: $525,138 PAGE 18 of 589
City Manager’s Report and Operational
Dashboard
December 13, 2023

$15,392,335
$14,160,299
$11,859,613
$7,120,318
$5,552,315
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
General Fund Balance at End of Each Month
FY 22-23 FY 23-24
$37,767,669
$35,768,971
$33,101,058
$31,780,272
$30,580,470
$30,000,000
$32,000,000
$34,000,000
$36,000,000
$38,000,000
$40,000,000
$42,000,000
$44,000,000
$46,000,000
$48,000,000
Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
Overall Cash Balance in the Bank at End of Each Month
FY 22-23 FY 23-24
Finance
PAGE 19 of 589
City Manager’s Report and Operational
Dashboard
December 13, 2023

109 108 109 108 107
80 90
100
110
120
Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
Full-Time Employees (112 budgeted)
FY 22-23 FY 23-24
68 68
40 46 45
0 20
40 60
80 Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
Part-Time Employees
FY 22-23 FY 23-24
Fiscal Year 22-23 Average: 99 Current Year-to-Date Average: 109 Human Resources
Fiscal Year 22-23 Average: 46 Current Year-to-Date Average: 56

2.7% 3.6% 2.7% 3.6% 4.5%
0%
5%
10%
15%
Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
Full-Time Position Vacancy Rate
FY 22-23 FY 23-24
Fiscal Year 22-23 Average: 8.24% Current Year-to-Date Average: 3.6% PAGE 20 of 589
City Manager’s Report and Operational
Dashboard
December 13, 2023

56 60 66 65 63
0 20
40 60
80 Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
Workers' Comp Claims (Total Open)
FY 22-23 FY 23-24
1 7
3 2 2
0 5
10 Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
Workers' Comp Claims (New)
FY 22-23 FY 23-24
72 123
72 50 51
0 50
100
150
Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
Workers' Comp Cumulative Days Off (in month)
FY 22-23 FY 23-24
Human Resources
Fiscal Year 22-23 Average: 59 Current Year-to-Date Average: 62 Fiscal Year 22-23 Total: 45 Current Year-to-Date Total: 13 Fiscal Year 22-23 Total: 492 Current Year-to-Date Total: 317 PAGE 21 of 589
City Manager’s Report and Operational
Dashboard
December 13, 2023

80%
71% 68% 67% 67%
60%
70%
80%
90%
Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
Performance Evaluation Completion Rate
Fiscal Year 2023-24
Current Year-to-Date Average: 72%
Human Resources
PAGE 22 of 589
City Manager’s Report and Operational
Dashboard
December 13, 2023

60 89
49 54 43
0 50
100
Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
Maintenance Service Requests Opened
FY 22-23 FY 23-24
7%
3% 4%
6% 5%
0%
5%
10%
Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
% Fleet Out of Service More Than 3 Business Days
FY 22-23 FY 23-24
Fiscal Year 22-23 Average: 4.8% Current Year-to-Date Average: 5.0% Fiscal Year 22-23 Total: 620 Current Year-to-Date Total: 252 Parks & Public Works
86% 87%
90% 91%
88%
75%
80%
85%
90%
95%
Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
% Service Requests Closed Within 5 Business Days
FY 22-23 FY 23-24
Fiscal Year 22-23 Average: 86% Current Year-to-Date Average: 89% PAGE 23 of 589
City Manager’s Report and Operational
Dashboard
December 13, 2023

0 1
2 3
4 Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
Customer Service Surveys Received
FY 22-23 FY 23-24
Capital Projects in Design 5
Capital Projects in Construction 2
Fiscal Year 22-23 Total: 8 Current Year-to-Date Total: 1 100% 100%
0%
50%
100%
150%
Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
% Customer Survey Rating of Good/Superior
FY 22-23 FY 23-24
Fiscal Year 22-23 Average: 79% Current Year-to-Date Average: 100% Parks & Public Works
PAGE 24 of 589
City Manager’s Report and Operational
Dashboard
December 13, 2023

22 21
26 23 16
0 10
20 30
40 Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
Public Record Requests Received
FY 22-23 FY 23-24
9 7 7 8 7
0 5
10 15
Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
Average Time to Respond to Public Records Requests
FY 22-23 FY 23-24
4 1
0 1
0 0
2 4
6 Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
Claims Received
FY 22-23 FY 23-24
City Manager’s Office
Fiscal Year 22-23 Total: 276 Current Year-to-Date Total: 92 Fiscal Year 22-23 Average: 8 Current Year-to-Date Average: 8 Fiscal Year 22-23 Total: 14 Current Year-to-Date Total: 6 PAGE 25 of 589
City Manager’s Report and Operational
Dashboard
December 13, 2023

2 55
3 1 1
0 20
40 60
Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
Proclamations and Certificates Prepared
FY 22-23 FY 23-24
1 2
3 1
2 1
1 1
3 3
3 0
2 0
4 5
0 4
0 0
1 3
2 2
1 City Manager's Office
Finance
Human Resources
Community Development
Parks & Public Works
Fire
Police
Community Services
# of Agenda Items by Department (FY 22-23)
Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
Fiscal Year 22-23 Total: 70 Current Year-to-Date Total: 61 City Manager’s Office
PAGE 26 of 589
City Manager’s Report and Operational
Dashboard
December 13, 2023

3 7 8 7 5
0 5
10 15
20 Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
Film Permits Processed
FY 22-23 FY 23-24
3 1
2 3
0 0
1 2
3 4
Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
Special Event Permits Processed
FY 22-23 FY 23-24
City Manager’s Office
Fiscal Year 22-23 Total: 92 Current Year-to-Date Total: 25 Fiscal Year 22-23 Total: 16 Current Year-to-Date Total: 9 PAGE 27 of 589
City Manager’s Report and Operational
Dashboard
December 13, 2023

77 78
12 9
43 0
50 100
Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
New Weekly Briefing Monthly Sign Ups
FY 23-24
9,000
11,000
9,500
8,700
6,100
7,300
4,300
7,500
10,000
9,100
0 2,000
4,000
6,000
8,000
10,000
12,000
Facebook Instagram
Social Media Reach
Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
City Manager’s Office
Current Year-to-Date Average: 44
PAGE 28 of 589

PRESENTATION OF CITY TILE TO, AND

REMARKS FROM, OUTGOING MAYOR
PAGE 29 of 589

REORGANIZATION OF THE CITY COUNCIL BY

SELECTING A MAYOR AND VICE MAYOR
PAGE 30 of 589

REMARKS FROM THE NEWLY APPOINTED MAYOR
PAGE 31 of 589
TO: Mayor and City Council
FROM: Philippe Eskandar, City Manager
BY: Paul Chung, Finance Director
Mark Siegfried, Accounting Manager/Controller
DATE: December 13, 2023
SUBJECT: ADOPTION OF RESOLUTION NO. R-23-31 ADOPTING THE

COMMUNITY DEVELOPMENT BLOCK GRANT PROJECT FOR
FISCAL YEAR 2024-25

STRATEGIC PLAN CRITICAL SUCCESS FACTORS
Efficient, Responsive, and Effective City Services
Safe Community
Well-Maintained Infrastructure
Fiscally Responsible and Transparent City Government

BACKGROUND
The Community Development Block Grant (CDBG) is one of the longestrunning Federal grant programs, and it is administered through the U.S.

Department of Housing and Urban Development (HUD). Participating agencies use grant funds for local community development activities such as affordable housing, anti-poverty programs, and infrastructure improvement such as eliminating accessibility barriers. The CDBG program allows for cities to select projects that are aligned with community needs, fulfill national CDBG objectives, and serve low-to-moderate income people.

DISCUSSION
The City of San Marino has been a participating agency of the CDBG for several years. One of the requirements of the CDBG program is to annually identify eligible projects, pass an authorizing resolution and conduct public noticing for the upcoming project cycle. Eligible projects include acquisition of real property, demolition, relocation, public services, and construction of public facilities.

Steve Talt, Mayor
Steven W. Huang, DDS, Vice Mayor
Tony Chou, Council Member
Calvin Lo, Council Member
Gretchen Shepherd Romey, Council Member
PAGE 32 of 589
The total estimated CDBG allocation for FY 2024-25 is $60,216. $9,032 of these funds are proposed to be used for the Senior Outreach Program that is administered by the Community Services Department. The City is capped at using fifteen percent (15%) of the funds for community public service programs. The remaining $51,184 is proposed to be used as part of an ADA compliant sidewalk replacement program project similar to the one completed in November 2018. In prior years, the City has been transferring unused funds to the CDBG Revolving Grant Fund so they can be used for a large-scale sidewalk project. In total, the City will have $217,604 of CDBG funding for the sidewalk project.

FISCAL IMPACT & PROCUREMENT REVIEW
The funds for the Senior Outreach Program and ADA compliant sidewalk replacement program project will be provided by the CDBG program under the administration of the Los Angeles County Development Authority (formerly known as the Los Angeles Community Development Commission). The total allocation for FY 2024-25 is $60,216 and the City will also request reimbursement of funds that were previously transferred to the CDBG Revolving Grant Fund. Consequently, there will be no fiscal impact on the City’s General Fund as a result of this project.

The FY 2024-25 budget will include $9,032 as part of the Community Service Department’s operating budget as well as $217,604 for a CDBG funded ADA compliant sidewalk replacement project.

Procurement review is not applicable.

LEGAL REVIEW
The City Attorney's office has reviewed and approved as to form.

RECOMMENDATION
Staff recommends the City Council conduct a public hearing to consider the use of CDBG funds for the Senior Outreach Program and ADA compliant Sidewalk Replacement Program in FY 2024-25. If the City Council concurs with staff’s recommendation, the appropriate motion, after the hearing, would be:
“I move to adopt Resolution No. R-23-31, a Resolution of the City Council of the City of San Marino, California adopting the projected use of funds from the Community Development Block Grant program for Fiscal Year 2024-25.” PAGE 33 of 589

ATTACHMENTS

1. Resolution No. R-23-31

2. Notice of Public Hearing
PAGE 34 of 589
RESOLUTION NO. R-23-31

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN

MARINO, CALIFORNIA ADOPTING THE PROJECTED USE OF FUNDS

FROM THE COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM
FOR FISCAL YEAR 2024-25
WHEREAS, the City of San Marino is a participating agency under the County of Los Angeles Community Development Block Grant Program; and
WHEREAS, the City staff has considered and evaluated projects and programs fulfilling important community needs; and
WHEREAS, on December 13, 2023, the City Council has provided the opportunity for public input regarding the City’s Community Development Block Grant Program for the 2024-25 program year.

NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of San Marino, California hereby:

SECTION 1. Approves the projected use of CDBG funds attached hereto as Exhibit A for Fiscal Year 2024-25 and instructs staff to submit the Program Planning Summary for approval to the Los Angeles County Development Authority.

SECTION 2. Approves the inclusion of said projects in the City of San Marino Fiscal Year 2024-25 budget.

SECTION 3. Authorizes staff to adjust the program budget as necessary to take into account the final CDBG allocation from the US Department of Housing and Urban Development (HUD) and any amounts remaining unspent at the close of the fiscal year.

SECTION 4. Authorizes the City Manager to execute all necessary contracts and agreements with the Community Development Commission and with each approved recipient/subrecipient of the program, together with any changes therein which may be approved by the City Manager and, as necessary, by the City Attorney.

PASSED, APPROVED, AND ADOPTED this 13th day of December, 2023. ___________________________

STEVE TALT
MAYOR
PAGE 35 of 589
CITY OF SAN MARINO RESOLUTION NO. R-23-31

PAGE TWO
ATTEST:
__________________________

ALISON WALKER

CITY CLERK

STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.

CITY OF SAN MARINO )
I HEREBY CERTIFY that the foregoing Resolution No. R-23-31 was duly adopted by the City Council of the City of San Marino at a Regular Meeting held on the 13th day of December 2023, by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:
___________________________________

ALISON WALKER

CITY CLERK
PAGE 36 of 589

EXHIBIT A

CITY OF SAN MARINO
FY 2024-25 PROPOSED CDBG FUNDING RECOMMENDATIONS

PROJECT PROPOSED FUNDING AMOUNT
ADA Compliant Sidewalk Replacement Program $51,184
Senior Outreach Program $9,032
TOTAL GRANT AMOUNT: $60,216
PAGE 37 of 589
N-23-17

CITY OF SAN MARINO

NOTICE OF PUBLIC HEARING AND

NOTICE OF PUBLIC REVIEW AND COMMENT PERIOD
Community Development Block Grant Program
Fiscal Year 2024-25
NOTICE IS HEREBY GIVEN that the City Council will hold a Public Hearing at the City Council Regular meeting, Wednesday December 13, 2023 at 6:00 p.m. at the City Hall Council Chambers located at 2200 Huntington Drive, San Marino, CA 91108 to consider the CDBG activities for fiscal year 2024-25. The City welcomes additional comments on the proposed 2024-25 CDBG activities during the scheduled public hearing.

NOTICE IS HEREBY GIVEN that a public review and comment period of the City of San Marino’s proposed Community Development Block Grant (CDBG) activities for the fiscal year 2024-25 will begin on Tuesday November 28, 2023 and conclude on December 13, 2023. These activities are intended to meet the City of San Marino’s housing and community development needs.

The City of San Marino receives CDBG funds from the U.S. Department of Housing and Urban Development (HUD) as a Participating City of the Los Angeles County Community Development Commission Urban County Program. The overall objective of the CDBG program is the development of viable communities through the provision of decent housing, a suitable living environment and the expansion of economic opportunities primarily for low and moderate income persons.

The distribution of these funds is recommended as follows:

Senior Outreach Program: $9,032
ADA Compliant Sidewalk Replacement Program: $51,184
Total: $60,216
The City is also recommending the use of $166,420 of funds previously transferred to the Revolving Grant Fund for the ADA Compliant Sidewalk Replacement Program.

Detailed descriptions of these activities are available through Robert Bauman, Management Analyst (626)-300-0765.

The Community is invited to submit any written comments of the proposed activities to the address below no later than December 13, 2023 by 6:00 p.m.

City of San Marino
c/o Alison Walker, City Clerk
2200 Huntington Drive
San Marino, CA 91108
Or via email: [email protected]
Date Posted: November 28, 2023
Location(s) notice posted: City Hall, Crowell Public Library, San Marino Community Center and Stoneman School
PAGE 38 of 589
TO: Mayor and City Council
FROM: Philippe Eskandar, City Manager
BY: Paul Chung, Finance Director
Mark Siegfried, Accounting Manager/Controller
DATE: December 13, 2023
SUBJECT: RECEIVE AND FILE FINANCIAL REPORT FOR FIRST
QUARTER (JULY 2023 THROUGH SEPTEMBER 2023)

STRATEGIC PLAN CRITICAL SUCCESS FACTORS
Efficient, Responsive, and Effective City Services
Fiscally Responsible and Transparent City Government

BACKGROUND
The following presents the financial activity of the City for the quarter ended September 30, 2023 as well as the fiscal year-to-date financial information. These figures are unaudited and have been compiled by the Finance Department. Financial information as noted at September 30, 2022 has been included for comparative purposes.

DISCUSSION
The First Quarter (July 2023 through September 2023) was the fourteenth reporting period that the City felt the fiscal impact due to the COVID-19 pandemic as it starts to rebound back to pre-pandemic levels. During the First Quarter of 2024, General Fund revenues increased by $235k or 15.6% versus the First Quarter of 2023. Tax revenues overall remained strong and intact and Charges for Services continue to rebound. Another reason for the increase for the first quarter compared to last year is due to the fluctuations in market value of the City’s investments and an increase of investment returns.

Total General Fund expenses for the quarter increased by $191k or 5.9% Steve Talt, Mayor
Steven W. Huang, DDS, Vice Mayor
Tony Chou, Council Member
Calvin Lo, Council Member
Gretchen Shepherd Romey, Council Member
PAGE 39 of 589
compared to last year.

To summarize, the First Quarter revenues and expenditures came in as expected as the local economy continues to recover from the economic impacts of COVID-19. The City’s overall financial status is stable and continues to remain robust. Additional first quarter details are provided in the tables below.

First Quarter 2024 versus First Quarter 2023 Financial Information Below is the revenues and expenditures for the General Fund (Fund 101), the Public Safety Fund (Fund 103), and all of the Special Revenue Funds.

PAGE 40 of 589

QUARTERLY FINANCIAL REPORT

GOVERNMENTAL FUNDS (UNRESTRICTED)
General Fund (101)
Revenues YTD PY YTD $$$ %
Taxes 1,044,311 995,932 48,379 4.9% Note 1
Licenses & Permits 307,491 185,358 122,133 65.9% Note 2 Charges for Service 269,282 286,841 (17,559) -6.1% Note 3 Intergovernmental - - 0 0.0%
Fines & Forfeitures 2,155 600 1,555 259.2%
Money & Property 111,619 35,682 75,937 212.8% Note 4
Miscellaneous 6,355 1,572 4,783 304.3%
General Fund Total Revenues 1,741,214 1,505,985 235,229 15.6% Expenses YTD PY YTD $$$ %
City Council 14,114 14,332 (218) -1.5%
City Attorney 18,825 32,212 (13,386) -41.6%
Non-Departmental 273,352 241,850 31,502 13.0%
City Manager's Office 205,368 211,431 (6,063) -2.9%
Human Resources 133,411 97,389 36,023 37.0%
Finance Department 256,609 286,330 (29,721) -10.4%
Community Development 557,182 404,713 152,469 37.7%
Emergency Services 11,973 1,440 10,532 731.4%
Parks and Public Works 950,406 965,864 (15,458) -1.6%
Recreation Department 570,530 517,585 52,945 10.2%
Library Department 435,825 403,834 31,990 7.9%
El Molino Viejo - 60,000 (60,000) 0.0%
General Fund Total Expenses 3,427,595 3,236,979 190,615 5.9% Note 5 Net Income-General Fund (1,686,380) (1,730,994) 44,614 2.6% Public Safety Fund (103)
Revenues YTD PY YTD $$$ %
Taxes 15,458 16,642 (1,184) -7.1%
Charges for Service 173,984 190,444 (16,459) -8.6% Note 6 Intergovernmental 1,190 441 749 169.7%
Fines & Fees 11,858 12,207 (349) -2.9%
Miscellaneous 3,376 2,664 712 26.7%
205,867 222,397 (16,530) -7.4%
Expenses YTD PY YTD $$$ %
Police Department 2,723,599 2,581,300 142,298 5.5%
Fire Department 2,493,301 2,323,027 170,274 7.3%
5,216,900 4,904,328 312,572 6.4% Note 7
Net Income-Public Safety Fund (5,011,034) (4,681,931) (329,103) -7.0%

SPECIAL REVENUE FUNDS (RESTRICTED)
YTD PY YTD $$$ %
Revenues 354,424 373,521 (19,097) -5.1% Note 8
Expenses 20,833 162,519 (141,686) -87.2% Note 9
Net Income-Special Revenue Funds 333,591 211,002 122,589 58.1% Total Revenues-All Funds 2,518,494 2,308,108 210,387 9.1% Total Expenses-All Funds 12,177,643 9,999,472 2,178,171 21.8% Net Income-All Funds (9,659,149) (7,691,365) (1,967,784) -25.6% CY vs PY
CY vs PY
CY vs PY
CY vs PY
CY vs PY
PAGE 41 of 589
Items of Note:

1. Increase in Taxes is due to Property Taxes increasing by $32k (7%) as well as Sales Taxes increasing by $6k (18%).

2. Increase in Licenses & Permits is due to Building Permits increasing by $101k compared to last year. This increase in building permits is consistent with trends seen throughout California and the West during the 3rd Quarter of 2023 after declining in 2022. Street & Curb Permits also increased by $26k compared to prior year.

3. Decrease in Charges for Service of $18k is due to Plan Check Fees decreasing by $23k compared to prior year.

4. Increase in Money & Property is due to fluctuations of the market value of the City’s investments and interest rates increasing. With interest rates continuing to increase, interest income has continued to rebound while market values of investments continue to increase as they come closer to maturity.

5. Overall increase in Non-sworn Department expenses of $191k (5.9%) compared to the prior year. Increase is due to cost of living adjustments of 4% related to salaries as stipulated in the various MOUs with city employees.

Year-to date figures are tracking below budget.

6. Decrease in Charges for Services related to the Public Safety Fund is due to reimbursements for Paramedic Services decreasing by $18k compared to prior year.

7. Increase in Sworn Department expenses of $313k (or 6.4%) is due to CPI increases related to materials and supplies as well as cost of living adjustments related to salaries.

8. Decrease in revenues related to Special Revenue Funds is due to the City receiving $14k in the prior year related to the OTS Grant. The City has not received any OTS Grant Funds in the current year.

9. Decrease in expenses related to Special Revenue Funds is due to the Street Rehabilitation Project and using various transit related funds to pay for the some of the project as opposed to relying mostly on the City’s Capital Improvement Project Fund in the prior year. The City also had $68k in OTS Grant Fund expenses in the prior year.

PAGE 42 of 589
All Funds Revenue Summary at September 30, 2023
In the next summary, budgeted revenues are shown against actual revenue at September 30, 2023 and in comparison to the prior year at this same time period.

PAGE 43 of 589
Adopted Year-to-Date Increase/(Decrease) Prior Year
Budget Actual % v. Prior Year Actual
General Funds Group
General Fund 29,384,411 1,741,214 6% 235,229 1,505,985
Public Safety Fund 4,627,794 205,867 4% (16,530) 222,397 Fourth ofJuly 58,160 47,545 82% 7,608 39,937
San Marino Center 0 0 0% 0 0
American Rescue Plan 1,973,747 0 0% 0 0
Donations to City 132,250 11,783 9% (19,322) 31,106
Total General Fund 36,176,362 2,006,409 6% 206,984 1,799,425 Special Revenue Funds
Gas Taxes 672,921 90,318 13% 6,409 83,909
CDBG 9,131 0 0% (1,709) 1,709
County Park Prop A 0 0 0% 0 0
Prop A Transit 356,741 83,831 23% (3,127) 86,959
Drought 200 0 0% 0 0
Air Quality (AQMD) 19,050 58 0% 415 (357)
STPL 500 0 0% 0 0
TDA 19,100 0 0% 0 0
Prop C Transit 296,833 69,600 23% (2,529) 72,129
PEG Fees 31,800 0 0% 0 0
Asset Forfeiture 200 0 0% 0 0
Granada Ave. 0 0 0% 0 0
Used Oil Grant 100 0 0% 0 0
OTS Gant 83,040 0 0% 0 0
Recycling 91,500 0 0% 0 0
COPS 205,000 0 0% 0 0
Homeland Security Grant 0 0 0% 0 0
County Measure R 557,375 52,113 9% (1,971) 54,084
Measure W 235,000 0 0% 0 0
County Measure M 254,758 58,504 23% (2,744) 61,248
Total Special Revenue Funds 2,833,249 354,424 13% (5,256) 359,680 Capital Project Fund
Capital Projects 50,000 0 0% 0 0
Internal Service Fund
Capital Equipment 630,643 157,661 25% 22,499 135,162
Total Internal Service Funds 630,643 157,661 25% 22,499 135,162 Fiduciary Fund
Agency Fund 0 0 0% (1,261) 1,261
Total All Revenue 39,690,254 2,518,494 6% 222,967 2,295,527 All Revenue by Fund
For Quarter Ended September 30, 2023 -- 25% of Fiscal Year Complete PAGE 44 of 589
All Funds Expenditure Summary at September 30, 2023
In the next summary, budgeted expenditures are shown against actual expenditures at September 30, 2023 and in comparison to the prior year at this same time period.

PAGE 45 of 589
Adopted Year-to-Date Increase/(Decrease) Prior Year
Budget Actual % v. Prior Year Actual
General Funds Group
General Fund 15,721,371 3,427,595 22% 190,615 3,236,979 Public Safety Fund 15,915,690 5,216,900 33% 312,572 4,904,328 Fourth ofJuly 101,166 64,339 64% 5,007 59,332
San Marino Center 0 0 100% 0 0
Donations to City 121,280 2,526 2% (329) 2,856
American Rescue Plan 401,783 6,236 2% 6,236 0
Workers' Compensation 664,300 317,923 48% (17,434) 335,358 General Liability 766,174 766,554 100% 74,184 692,370
Total General Fund 33,691,764 9,802,073 29% 570,851 9,231,222 Special Revenue Funds
Gas Taxes 675,000 0 0% (38,779) 38,779
CDBG 9,000 0 0% (1,709) 1,709
County Park Prop A 0 0 100% (485) 485
Prop A Transit 319,430 1,833 1% (24,398) 26,232
Air Quality 58,790 0 0% (27,047) 27,047
Drought 0 0 0% 0 0
STPL 0 0 0% 0 0
TDA 38,000 19,000 50% 19,000 0
Prop C Transit 402,500 0 0% 0 0
OTS Grant 83,040 0 0% (68,266) 68,266
Recycling 91,000 0 0% 0 0
Used Oil Grant 0 0 0% 0 0
COPS 144,842 0 0% 0 0
Homeland Security Grant 0 0 0% 0 0
Measure W 217,218 0 0% 0 0
County Measure R 555,000 0 0% 0 0
County Measure M 1,000,000 0 100% 0 0
Total Special Revenue 3,593,820 20,833 1% (141,686) 162,519 Capital Projects Funds
Capital Projects 13,355,004 1,769,373 13% 1,729,162 40,212 Debt Service Funds
Debt Service 574,888 574,888 100% 22,854 552,034
Internal Service Funds
Capital Equipment 940,886 10,475 1% (3,010) 13,486
Total Expenditures 52,156,362 12,177,643 23% 2,178,171 9,999,472 All Expenditures by Fund
For Quarter Ended September 30, 2023 -- 25% of Fiscal Year Complete PAGE 46 of 589

FISCAL IMPACT & PROCUREMENT REVIEW
This report possesses no fiscal impact and requires no procurement review.

LEGAL REVIEW
The City Attorney's office has reviewed and approved as to form.

RECOMMENDATION
Staff recommends that Council receive and file this report. If the City Council concurs with staff’s recommendation, an appropriate motion would be:
“I move to receive and file the financial report reflecting the City’s revenues and expenditures as of September 30, 2023.”

ATTACHMENTS

1. Revenue Summary Report at September 30, 2023

2. Expenditure Summary Report at September 30, 2023
PAGE 47 of 589
PAGE 48 of 589

THIS PAGE LEFT BLANK INTENTIONALLY
PAGE 49 of 589
FY 22-23
Budget @ 9.30.23 % @ 9.30.22 $ %

GOVERNMENTAL FUNDS (UNRESTRICTED)
General Fund (101)
Taxes
Property Taxes 20,060,825 471,221 2% 439,312 31,909 7%
Sales Taxes 485,000 36,743 8% 31,181 5,562 18%
Franchise Taxes 659,000 40,658 6% 37,443 3,215 9%
Property Transfer Taxes 190,000 40,753 21% 29,311 11,441 39% Utility Users Taxes 2,222,000 354,523 16% 352,062 2,462 1% Business License Taxes 431,000 100,414 23% 106,623 (6,209) -6% Subtotal Taxes 24,047,825 1,044,311 4% 995,932 48,379 5% Licenses & Permits
Street & Curb Permits 118,000 61,767 52% 35,631 26,136 73% Building Permits 552,000 227,896 41% 127,287 100,609 79% Tree Permits 44,000 13,695 31% 13,410 285 2%
Bicycle Licenses 0 - 100% - 0 0%
Film Permits 39,000 4,133 11% 9,030 (4,897) -54%
Subtotal Licenses & Permits 753,000 307,491 41% 185,358 122,133 66% Charges for Service
Administration 101 100% 119 (18) -15%
Planning & Building Department 491,200 122,248 25% 132,300 (10,052) -8% Public Works, Streets, Parks Department 132,000 22,118 17% 22,075 43 0% Recreation Department 781,246 81,316 10% 88,460 (7,144) -8% Library Department 197,250 43,500 22% 43,887 (387) -1%
Subtotal Charges for Service 1,601,696 269,282 17% 286,841 (17,559) -6% Intergovernmental
VLF 12,500 - 0% - 0 0%
VLF Swap (Motor Vehicle In-Lieu) 2,016,000 - 0% - 0 0%
COVID-19 Reimbursements 0 - 100% - 0 100%
Cenic Rebates 10,560 - 0% - 0 0%
Subtotal Intergovernmental 2,039,060 - 0% - 0 0%
Fines & Forfeitures
Fines & Fees 500 25 5% - 25 0%
Tree Fines 2,000 - 0% - 0 0%
Business License NOVs & Admin Citation Fees 6,500 2,130 33% 600 1,530 255% Subtotal Fines & Forfeitures 9,000 2,155 24% 600 1,555 259% Money & Property
Rentals - PW 100 - 0% - 0 0%
Rents & Concessions - Park 210,730 53,773 26% 58,375 (4,602) -8% Rents & Concessions - Recreation 0 - 100% - 0 0%
Rents & Concessions - SMCC 270,000 - 0% - 0 0%
Library Rentals 2,500 474 19% 1,840 (1,366) -74%
Unrealized Gain (Loss) on Investments 0 (63,856) 100% - (63,856) 0% Interest Income 430,000 121,228 28% (24,533) 145,761 -594% Subtotal Money & Property 913,330 111,619 12% 35,682 75,937 213% Miscellaneous
Miscellaneous 10,000 2,292 23% 1,560 732 47%
Damage to City Property 5,000 - 0% - 0 0%
Sale of Property 5,000 4,046 81% - 4,046 0%
City Reimbursements 500 - 0% - 0 0%
Old Mill Reimbursements 0 - 100% - 0 0%
Miscellaneous - Library 0 17 100% 12 5 38%
Subtotal Miscellaneous 20,500 6,355 31% 1,572 4,783 304% 29,384,411 1,741,214 6% 1,505,985 235,229 16%
Public Safety Fund (103)
Taxes
Property Taxes 3,528,294 - 0% - 0 0%
Augmentation Fund 218,100 15,458 7% 16,642 (1,184) -7%
Subtotal Taxes 3,746,394 15,458 0% 16,642 (1,184) -7%
Charges for Service
Shared Fire Command 0 - 100% - 0 0%
Paramedic Services 600,000 153,520 26% 171,335 (17,815) -10% All Other Charges 73,300 20,464 28% 19,109 1,356 7%
Subtotal Charges for Service 673,300 173,984 26% 190,444 (16,459) -9% General Fund Total
Fiscal Year 2023-24
Revenue Summary Report
For Quarter Ended September 30, 2023 -- 25% of Fiscal Year Complete Fiscal Year 2023-24 Current Year v. Prior Year
PAGE 50 of 589
FY 22-23
Budget @ 9.30.23 % @ 9.30.22 $ %
Fiscal Year 2023-24
Revenue Summary Report
For Quarter Ended September 30, 2023 -- 25% of Fiscal Year Complete Fiscal Year 2023-24 Current Year v. Prior Year
Intergovernmental
POST and GEMT Reimbursements 9,000 1,190 13% 441 749 170% Subtotal Intergovernmental 9,000 1,190 13% 441 749 170% Fines & Fees
Parking Citations 23,400 3,554 15% 4,037 (483) -12%
Vehicle Code Fines 50,300 8,304 17% 8,170 134 2%
Subtotal Fines & Fees 73,700 11,858 16% 12,207 (349) -3% Miscellaneous
Strike Team Reimbursements 125,000 - 0% - 0 0%
All Other Misc 400 3,376 844% 2,664 712 27%
Subtotal Miscellaneous 125,400 3,376 3% 2,664 712 27%
4,627,794 205,867 4% 222,397 (16,530) -7%
Fourth of July Fund (104) 58,160 47,545 82% 39,937 7,608 19% San Marino Center Fund (105) 0 - 100% - 0 0%
American Rescue Fund (245) 1,973,747 - 0% - 0 #DIV/0!
Donations Fund (281) 132,250 11,783 9% 31,106 (19,322) -62% GENERAL FUNDS GROUP TOTAL 36,176,362 2,006,409 6% 1,799,425 206,984 12%

SPECIAL REVENUE FUNDS (RESTRICTED)
Gas Tax Fund (202)
Interest Income 2,500 - 0% - 0 0%
Section 2105 82,360 12,182 15% 11,777 405 3%
Section 2106 51,500 7,831 15% 7,697 134 2%
Section 2107 98,925 17,006 17% 16,385 621 4%
Section 2107.5 3,000 3,000 100% 3,000 0 0%
Section 2032 310,264 26,390 9% 22,965 3,426 15%
Traffic Congestion Relief - Prop 42 0 - 100% - 0 0%
Section 2103 124,372 23,909 19% 22,086 1,823 8%
672,921 90,318 13% 83,909 6,409 8%
Community Development Block Grant Fund (204) 9,131 - 0% 1,709 (1,709) -100% County Park Prop A Fund (206) 0 - 0% - 0 0%
Prop A Transit Fund (207) 356,741 83,831 23% 86,959 (3,127) -4% Drought Fund (209) 200 - 0% - 0 0%
Air Quality Management District Fund (212) 19,050 58 0% (357) 415 -116% STPL Fund (213) 500 - 0% - 0 0%
Transportation Development Act (TDA) Fund (214) 19,100 - 0% - 0 0% Total Public Safety Fund
Total Gas Tax Fund
PAGE 51 of 589
FY 22-23
Budget @ 9.30.23 % @ 9.30.22 $ %
Fiscal Year 2023-24
Revenue Summary Report
For Quarter Ended September 30, 2023 -- 25% of Fiscal Year Complete Fiscal Year 2023-24 Current Year v. Prior Year
Prop C Transit Fund (215) 296,833 69,600 23% 72,129 (2,529) -4% Public Education and Government (PEG) Fund (216) 31,800 - 0% - 0 0% Asset Forfeiture (Police) (217) 200 - 0% - 0 0%
Granada Ave. Assessment Dist. #2 Fund (220) 0 - 100% - 0 0% Used Oil Grant Fund (221) 100 - 0% - 0 0%
OTS Grant Fund (223) 83,040 - 0% 13,841 (13,841) -100%
California Recycling Grant Fund (226) 91,500 - 0% - 0 0% Citizens' Option for Public Safety (COPS) Fund (233) 205,000 - 0% - 0 #DIV/0! Homeland Security Grant (240) 0 - 100% - 0 0%
Measure R Transit Fund (243) 557,375 52,113 9% 54,084 (1,971) -4% Measure W Clean Water Fund (246) 235,000 - 0% - 0 100%
Measure M Transit Fund (247) 254,758 58,504 23% 61,248 (2,744) -4% SPECIAL REVENUE RESTRICTED FUNDS TOTALS 2,833,249 354,424 13% 373,521 (19,097) -5%

PROPRIETARY FUNDS (INTERNAL SERVICES)
Capitalized Equipment Fund (591) 630,643 157,661 25% 135,162 22,499 17% INTERNAL SERVICE FUNDS TOTALS 630,643 157,661 25% 135,162 22,499 17%

CAPITAL PROJECTS FUND
Interest Income 0 - 100% - 0 0%
Reimbursement 25,000 - 0% - 0 0%
Huntington Library Donation 25,000 - 0% - 0 0%
50,000 - 0% - 0 0%

FIDUCIARY FUNDS
Agency Fund (609) 0 - 0% - 0 0%
FIDUCIARY FUNDS TOTALS 0 - 0% 0 0 0%
ALL REVENUE GROUPS & FUNDS TOTAL 39,690,254 2,518,494 6% 2,308,108 210,387 9% PAGE 52 of 589
PAGE 53 of 589

THIS PAGE LEFT BLANK INTENTIONALLY
PAGE 54 of 589
FY 22-23
Budget @ 9.30.23 % @ 9.30.22 $ %

GOVERNMENTAL FUNDS (UNRESTRICTED)
General Fund (101)
City Council 31,025 14,114 45% 14,332 (218) -2%
City Attorney 430,000 18,825 4% 32,212 (13,386) -42%
Non-Departmental 1,639,146 273,352 17% 241,850 31,502 13% City Manager's Office 975,600 205,368 21% 211,431 (6,063) -3% Human Resources 620,039 133,411 22% 97,389 36,023 37%
Finance Department 778,591 256,609 33% 286,330 (29,721) -10% Administration 4,474,401 901,679 20% 883,543 18,136 2%
Community Development Department 3,110,037 557,182 18% 404,713 152,469 38% Emergency Services 87,390 11,973 14% 1,440 10,532 731%
Public Works, Streets, Parks Department
Administration 589,877 127,460 22% 76,169 51,291 67%
Fleet 293,107 101,155 35% 102,517 (1,363) -1%
Sewers 231,530 21,771 9% 37,450 (15,680) -42%
Streets 1,045,004 252,069 24% 208,566 43,503 21%
Parks 566,083 152,516 27% 134,207 18,309 14%
Public Grounds 1,114,194 243,499 22% 380,985 (137,486) -36% Buildings 206,690 51,937 25% 25,969 25,968 100%
Subtotal Parks & PW 4,046,485 950,406 23% 965,864 (15,458) -2% Recreation Department
CSD - Admin 765,549 148,378 19% 95,311 53,068 56%
Rec- Administration 465,022 127,550 27% 112,628 14,922 13% Aquatics 145,331 47,396 33% 38,861 8,536 22%
Youth 365,139 95,624 26% 87,055 8,569 10%
Adult 44,903 14,870 33% 21,931 (7,061) -32%
Community Events & Enrichment 195,825 47,963 24% 40,656 7,306 18% Contract Classes 142,049 64,605 45% 89,817 (25,212) -28% Facilities & Rentals 166,644 24,144 14% 31,327 (7,183) -23% San Marino Center/Thurnher House 0 - 0% - 0 0%
Subtotal Recreation 2,290,462 570,530 25% 517,585 52,945 10% Library Department
Administration 543,377 180,717 33% 186,402 (5,685) -3%
Adult Services 295,310 75,647 26% 57,003 18,644 33%
Children's Services 288,728 68,225 24% 64,411 3,814 6%
Processing 46,134 5,260 11% 2,243 3,017 134%
Circulation 479,047 105,975 22% 93,775 12,200 13%
Subtotal Library 1,652,596 435,825 26% 403,834 31,990 8% El Molino Viejo 60,000 - 0% 60,000 (60,000) -100%
Total General Fund 15,721,371 3,427,595 22% 3,236,979 190,615 6% Public Safety Fund (103)
Police Department 9,159,755 2,723,599 30% 2,581,300 142,298 6% Fire Department 6,755,935 2,493,301 37% 2,323,027 170,274 7% Public Safety Fund 15,915,690 5,216,900 33% 4,904,328 312,572 6% Fourth of July Event Fund (104)
4th of July 101,166 64,339 64% 59,332 5,007 8%
4th of July Event Fund 101,166 64,339 64% 59,332 5,007 8% San Marino Center Fund (105)
San Marino Center 0 - 100% - 0 0%
SM Center Fund 0 - 100% - 0 0%
Fiscal Year 2023-24
Expenditure Summary Report
For Quarter Ended September 30, 2023 -- 25% of Fiscal Year Complete Fiscal Year 2023-24 Current Year v. Prior Year
PAGE 55 of 589
FY 22-23
Budget @ 9.30.23 % @ 9.30.22 $ %
Fiscal Year 2023-24
Expenditure Summary Report
For Quarter Ended September 30, 2023 -- 25% of Fiscal Year Complete Fiscal Year 2023-24 Current Year v. Prior Year
Donations to City Fund (281)
Police - 0% 642 (642) -100%
Fire - 0% - 0 0%
Lacy Park 15,530 1,811 12% 1,843 (32) -2%
Recreation 2,250 - 0% - 0 0%
Preschool 0 - 0% - 0 0%
Thurnher House 0 - 0% - 0 0%
Library Administration 66,000 - 0% - 0 0%
Library Adult Services 12,500 248 2% - 248 0%
Library Children's Services 25,000 468 2% 370 98 26%
Donations to City Fund 121,280 2,526 2% 2,856 (329) -12% American Rescue Plan Fund (245)
HVAC System & ARPA Bonus Pay 401,783 6,236 2% - 6,236 0% American Rescue Plan Fund 401,783 6,236 2% - 6,236 0%
Workers' Compensation Fund (595)
Administration 0 - 0% - 0 0%
Human Resources 286,061 181,594 63% 193,766 (12,172) -6% Community Development 5,760 2,908 50% - 2,908 0%
Police 126,720 58,137 46% 37,740 20,397 54%
Fire 211,200 75,031 36% 81,788 (6,756) -8%
PW Administration 23,039 252 1% 21,157 (20,905) -99%
Recreation Administration 5,760 - 0% 907 (907) -100%
Library Administration 5,760 - 0% - 0 0%
Workers' Comp Fund 664,300 317,923 48% 335,358 (17,434) -5% General Liability Fund (596)
CJPIA Insurance Premiums 766,174 766,554 100% 692,370 74,184 11% General Liability Fund 766,174 766,554 100% 692,370 74,184 11% GENERAL FUND GROUP TOTAL 33,691,764 9,802,073 29% 9,231,222 570,851 6%

SPECIAL REVENUE FUNDS (RESTRICTED)
Gas Tax Fund (202)
Street Rehabilitation 675,000 - 0% 38,779 (38,779) -100% Gas Tax Fund 675,000 - 0% 38,779 (38,779) -100%
Community Development Block Grant Fund (204)
Sidewalk Repair 0 - 0% - 0 0%
Senior Outreach 9,000 - 0% 1,709 (1,709) -100%
CDBG Fund 9,000 - 0% 1,709 (1,709) -100%
County Park Prop A Bond Fund (206)
Thurnher House 0 - 0% 485 (485) -100%
Park Prop A Bonds 0 - 0% 485 (485) -100%
Prop A Transportation Fund (207)
Administration/Finance 160,300 - 0% - 0 0%
Streets 112,500 - 0% - 0 0%
Youth 36,500 1,833 5% 23,977 (22,143) -92%
Adult 10,130 0 0% 2,255 (2,255) -100%
Prop A Transportation Fund 319,430 1,833 1% 26,232 (24,398) -93% Drought Fund (209)
Contract Services 0 - 0% - 0 0%
Drought Fund 0 - 0% - 0 0%
PAGE 56 of 589
FY 22-23
Budget @ 9.30.23 % @ 9.30.22 $ %
Fiscal Year 2023-24
Expenditure Summary Report
For Quarter Ended September 30, 2023 -- 25% of Fiscal Year Complete Fiscal Year 2023-24 Current Year v. Prior Year
Air Quality Fund (212)
Vehicle Replace-PPW 58,790 - 0% 27,047 (27,047) -100%
Air Quality Fund 58,790 - 0% 27,047 (27,047) -100%
STPL Fund (213)
Street Rehabilitation 0 - 0% - 0 0%
0 - 0% - 0 0%
Transportation Development Act (TDA) Fund (214)
City Wide Sidewalk 38,000 19,000 50% - 19,000 0%
TDA Fund 38,000 19,000 50% - 19,000 0%
Prop C Transit Fund (215)
Streets 402,500 - 0% - 0 0%
Prop C Fund 402,500 - 0% - 0 0%
Used Oil Grant (221)
Planning & Building 0 - 0% - 0 0%
Used Oil Fund 0 - 0% - 0 0%
OTS Grant (223)
Police Contract Services 83,040 - 0% 68,266 (68,266) -100% OTS Grant Fund 83,040 - 0% 68,266 (68,266) -100%
California Recycling Grant Fund (226)
Street Rehabilitation 91,000 - 0% - 0 0%
California Recycling Grant Fund 91,000 - 0% - 0 0%
COPS Fund (233)
Police Contract Services 144,842 - 0% - 0 0%
COPS Fund 144,842 - 0% - 0 0%
Homeland Security Grant Fund (240)
Capitalized Equipment 0 - 0% - 0 0%
Measure R Fund 0 - 0% - 0 0%
Measure R Fund (243)
Street Rehabilitation 555,000 - 0% - 0 0%
Measure R Fund 555,000 - 0% - 0 0%
Measure W Clean Water Fund (246)
Water Projects 217,218 - 0% - 0 0%
Measure W Fund 217,218 - 0% - 0 0%
Measure M Fund (247)
Street Rehabilitation 1,000,000 - 0% - 0 0%
Measure M Fund 1,000,000 - 0% - 0 0%
SPECIAL REVENUE RESTRICTED FUNDS TOTALS 3,593,820 20,833 1% 162,519 (141,686) -87%

CAPITAL PROJECTS FUNDS
Capital Projects Fund (394)
Construction - Police Department Lobby 0 - 0% - 0 0%
911 Dispatch Renovation 0 - 0% - 0 0%
PD Utilization Study 14,307 - 0% - 0 0%
PD Electrical Project 0 - 0% - 0 0%
PAGE 57 of 589
FY 22-23
Budget @ 9.30.23 % @ 9.30.22 $ %
Fiscal Year 2023-24
Expenditure Summary Report
For Quarter Ended September 30, 2023 -- 25% of Fiscal Year Complete Fiscal Year 2023-24 Current Year v. Prior Year
PD Cameras 0 - 0% 5,206 (5,206) -100%
PD Evidence Awning 0 - 0% - 0 0%
Fire Apparatus Doors 0 - 0% - 0 0%
FS Bathroom Remodel 18,250 - 0% - 0 0%
Fire Station HVAC Upgrades 0 - 0% - 0 0%
Fire Station H&S Upgrades 0 - 0% - 0 0%
EOC Improvements 11,394 - 0% - 0 0%
Civic Center Environmental Assessment 0 - 0% - 0 0%
San Marino Center Renovations 2,523,507 1,309,263 52% 12,806 1,296,458 10124% Emergency Generator System 31,888 - 0% - 0 0%
Condition Assessment-All Buildings 0 - 0% 7,200 (7,200) -100% City Hall Campus 0 - 0% - 0 0%
PW Facility Renovations 50,000 - 0% - 0 0%
Holiday House Restoration 10,000 - 0% - 0 0%
Stoneman School Fire Safety Project 0 - 0% - 0 0%
Stoneman Path Forward 130,000 - 0% - 0 0%
Public Works Vehicle Awning Co 15,000 - 0% - 0 0%
City Hall Campus Roof Repair 50,000 - 0% - 0 0%
Old Mill Facility Repairs 75,000 - 0% - 0 0%
Stoneman Facility Upgrades 156,000 - 0% - 0 0%
Sewer Projects
Condition Assessment-Stormwater System 0 - 0% - 0 0%
Drainage Wash Improvement Program 50,000 - 0% - 0 0%
Sewer/Storm Drain Replacement 60,000 - 0% - 0 0%
Sewer Master Plan 53,583 - 0% - 0 0%
Catch Basin Replacement 26,090 - 0% - 0 0%
Culvert Replacement Program 276,840 - 0% - 0 0%
Lift Station Replacements 1,230,919 30,273 2% - 30,273 0% Sewer System Mgmt Plan Update 15,000 - 0% - 0 0%
Rio Hondo Load Reduction Strategy 0 - 0% - 0 0%
Trash Capture Filters 25,000 - 0% - 0 0%
Street Projects
Street Rehab Program 5,032,678 51,709 1% - 51,709 0%
Pavement Condition Assessment 9,613 3,000 31% - 3,000 0% Street Tree Management Plan 72,559 - 0% 15,000 (15,000) -100% Sidewalk Repair - Various Streets 983,560 375,129 38% - 375,129 0% City Wide Traffic Study 46,466 - 0% - 0 0%
Traffic Control Device Program 169,805 - 0% - 0 0%
Huntington/Mission St. Beautification 1,000,000 - 0% - 0 0% Neighborhood Traffic Calming 75,000 - 0% - 0 0%
Bridge Maintenance Program 20,000 - 0% - 0 0%
Alley & Parking Lot Improvements 423,797 - 0% - 0 0%
Citywide Traffic Improvements 150,000 - 0% - 0 0%
Biennial Striping & Markings 109,027 - 0% - 0 0%
Streetlight Management Plan 165,821 - 0% - 0 0%
Lacy Park Projects
Restroom Upgrades 0 - 0% - 0 0%
Lacy Park Master Plan 0 - 0% - 0 0%
Lacy Park Compost Station 20,000 - 0% - 0 0%
Lacy Park Admissions Booth 0 - 0% - 0 0%
Lacy Park Playground Management Program 143,900 - 0% - 0 0% Lacy Park Emergency Phones 0 - 0% - 0 0%
Rose Arbor Renovation 0 - 0% - 0 0%
Condition Assessment 50,000 - 0% - 0 0%
Citywide Irrigation Upgrades 50,000 - 0% - 0 0%
Library Bottle Water Station 0 - 0% - 0 0%
Barth Room Lighting 10,000 - 0% - 0 0%
PAGE 58 of 589
FY 22-23
Budget @ 9.30.23 % @ 9.30.22 $ %
Fiscal Year 2023-24
Expenditure Summary Report
For Quarter Ended September 30, 2023 -- 25% of Fiscal Year Complete Fiscal Year 2023-24 Current Year v. Prior Year
Library Window Tinting 0 - 0% - 0 0%
Library Computer Room Renovations 0 - 0% - 0 0%
El Molino Viejo Pedestrian Lights 0 - 0% - 0 0%
El Molino Old Mill Restoration 0 - 0% - 0 0%
Capital Projects Fund 13,355,004 1,769,373 13% 40,212 1,729,162 4300% CAPITAL PROJECTS FUNDS TOTAL 13,355,004 1,769,373 13% 40,212 1,729,162 4300%

DEBT SERVICE FUNDS
Debt Service Fund (401)
Interest Expense 29,888 29,888 100% 57,034 (27,146) -48% Principal Repayment 545,000 545,000 100% 495,000 50,000 10% Debt Service Fund 574,888 574,888 100% 552,034 22,854 4% DEBT SERVICE FUNDS TOTAL 574,888 574,888 100% 552,034 22,854 4%

PROPRIETARY FUNDS (INTERNAL SERVICES)
Capitalized Equipment Fund (591)
Non-Departmental 0 - 0% - 0 0%
Human Resources 0 - 0% - 0 0%
Finance 136,961 32 0% 4,831 (4,799) -99%
Police 220,329 8,428 4% 8,655 (227) -3%
Fire 510,000 - 0% - 0 0%
Emergency Services 0 - 0% - 0 0%
Public Works Administration 0% - 0 0%
Fleet 2,279 2,016 88% - 2,016 0%
Streets 71,317 - 0% - 0 0%
Lacy Park 0 - 0% - 0 0%
Public Grounds 0 - 0% - 0 0%
Recreation Administration 0 - 0% - 0 0%
Library Administration 0 - 0% - 0 0%
Capitalized Equipment Fund 940,886 10,475 1% 13,486 (3,010) -22% INTERNAL SERVICE FUNDS TOTAL 940,886 10,475 1% 13,486 (3,010) -22% ALL EXPENDITURE GROUPS & FUNDS TOTAL 52,156,362 12,177,643 23% 9,999,472 2,178,171 22% PAGE 59 of 589
TO: Mayor and City Council
FROM: Philippe Eskandar, City Manager
BY: Paul Chung, Finance Director
Mark Siegfried, Accounting Manager/Controller
DATE: December 13, 2023
SUBJECT: RECEIVE AND FILE ANNUAL COMPREHENSIVE

FINANCIAL REPORT (ANNUAL AUDIT) FOR THE FISCAL
YEAR ENDED JUNE 30, 2023

STRATEGIC PLAN CRITICAL SUCCESS FACTORS
Engaged and Connected Residents
Efficient, Responsive, and Effective City Services
Fiscally Responsible and Transparent City Government

BACKGROUND
The Annual Comprehensive Financial Report (ACFR) is used to communicate the City’s financial condition and activity in a transparent and organized manner. The ACFR presents historical and comparative information that can be useful to City Staff, elected officials, and external users, such as businesses, other public agencies and the City’s residents. As required by the Citywide Financial Policies, the ACFR is prepared by the City and audited by independent auditors who are contracted through a competitive procurement process.

On March 10, 2021, the City entered into a new five-year contract with Lance, Soll & Lunghard, LLP (LSL) to provide auditing services of the City’s financial records and assist in preparing the City’s audited ACFR. LSL conducted the audit in accordance with the Generally Accepted Auditing Standards, whereby an audit plan was prepared and followed to obtain reasonable assurance that the City’s financial statements were free from material misstatements. The audit included a review, on a test basis, of documents supporting the amounts and disclosures in the financial statements. The audit also assessed the Steve Talt, Mayor
Steven W. Huang, DDS, Vice Mayor
Tony Chou, Council Member
Calvin Lo, Council Member
Gretchen Shepherd Romey, Council Member
PAGE 60 of 589
accounting principles used and significant estimates made by management, as well as evaluated the overall general-purpose financial statement presentation.

Fiscal Year 2022-23 represents the third year that the City has created an ACFR in accordance with standards prescribed by the Government Finance Officers Association (GFOA). This was an objective that the Finance Department previously disclosed as one of its goals during the Fiscal Year 2021-22 budget process and continues to be one of the Department’s core goals moving forward. In addition to the financial statements and required supplementary information which were provided in the past, the ACFR also provides a letter of transmittal and a statistical section detailing information about the City that external users can use to see ten-year trends of the City. The Fiscal Year 2021-22 ACFR received the City’s first Certificate of Achievement for Excellence in Financial Reporting. (Attachment 1) This year’s ACFR will be submitted once again to the GFOA as part of their Certificate of Achievement for Excellence in Financial Reporting awards programs.

DISCUSSION
The attached ACFR (Attachment 2) for the fiscal year ended June 30, 2023 received an unqualified/unmodified “clean” audit opinion letter. A clean opinion communicates to users that the financial statements are fairly presented and that the information used in the statements is reliable.

The recent history of findings is displayed below.

Fiscal Year Number of Material
Weaknesses
Number of Significant
Deficiencies
Fiscal Year 2015 6 1
Fiscal Year 2016 2 1
Fiscal Year 2017 0 1
Fiscal Year 2018 1 1
Fiscal Year 2019 0 0
Fiscal Year 2020 0 0
Fiscal Year 2021 0 0
Fiscal Year 2022 0 0
Fiscal Year 2023 0 0
In the Statement of Auditing Standards Statement (SAS) 114 letter (Attachment 3), the letter details the scope of audit procedures performed, significant findings, and other information, such as disagreements with PAGE 61 of 589
management, audit adjustments and significant estimates, that are not communicated in the audited financial statements.

In the past, the City had a history of material weaknesses and significant deficiencies that suggested fundamental operational problems that were reported by the auditors. In the Statement of Auditing Standards Statement (SAS) 115 letter (Attachment 4), LSL did not identify any deficiencies in internal controls that they consider as material weaknesses or significant deficiencies that require corrective action by the City.

The City’s General Fund had a net change of $-596,442 for the year ended June 30, 2023 which includes the City Council approving a transfer of $3.5 million to the Capital Projects Fund to fund future projects.

The General Fund’s unassigned fund balance as of June 30, 2023 is $16.2 million. This represents a reserve ratio of 56% measured against annual General Fund expenditures and 49% against annual General Fund revenues.

The City’s Financial Policies specify that the General Fund unassigned fund balance shall be approximately 40% of General Fund revenues.

Overall, the City’s Annual Financial Statements reflect the City’s strong financial condition with a healthy General Fund balance.

The format and content of the ACFR are largely prescribed in order to meet governmental accounting standards. The City’s ACFR include the following major sections and information:

Introductory Section
· Letter of Transmittal
· Organizational Chart
· List of Elected and Administrative Officials
· Certificate of Achievement for Excellence in Financial Reporting for Fiscal Year Ended June 30, 2022
Financial Section
· Independent Auditors’ Report: the City’s report card on the content of the Financial Statements
· Management’s Discussion and Analysis (MD&A): provides an analytical overview of the City’s financial status
· Governmental-Wide Financial Statements: show finances at a point in time (assets – liabilities) and throughout the year (revenues – expenditures), budget to actual revenues and expenditures, and cash flows · Fund Financial Statements: a detailed look at funds, showing Balance Sheet and Statement of Revenues, Expenditures, Changes in Fund Balance, and Net PAGE 62 of 589
Position
· Notes to the Financial Statements: a narrative explanation that accompanies the Basic Financial Statements
· Budget to Actual Comparisons: General Fund and other select major funds · Pension Information: 9 years of pension funding information · Other Post-Employment Benefits (OPEB) Information: 6 years of OPEB funding information
· Breakout of Individual Funds: presented in a cumulative manner in the Financial Section
Statistical Section
· Financial Trends
· Revenue Capacity
· Debt Capacity
· Demographic and Economic Information
· Operating Information
In an effort to make this complicated and large document more user-friendly, staff has provided a summary explanation of the ACFR in this staff report.

GENERAL FUND BALANCE (Page 16)
The most notable measure of a City’s financial health is the General Fund balance. As presented in the Basic Financial Statements, as of June 30, 2023, the total fund balance of General Fund is $17.6 million, a decrease of $0.6 million for the year.
· General Fund revenues increased by $2.2 million, or 7.0%, compared to FY 2021-22. The overall increase in General Fund revenues was driven by an increase in property taxes due to a strong real estate market. Charges for Services have also rebounded as the City has operated at full capacity after being shut down during the pandemic.
· Expenditures increased by $2.8 million, or 10.6%. The primary reason for the increase was the salary related expense increases that are part of the Memorandum of Understandings with the various City employee associations that was effective July 1, 2022. The City has also felt inflationary pressures as expenditures related to materials and supplies continue to increase.

CITYWIDE NET POSITION (Pages 8-10 and Pages 13-15)
The Statement of Net Position on page 13, similar to a balance sheet, shows total assets and liabilities of the City as of June 30, 2023. The total net position of the City for all activities was $203.8 million. The net position increased by $9.3 million, or 4.8% during the year. Revenues increased by $3.5 million, or 10.8% and expenses decreased by $3.7 million, or -12.2%, over the prior year amounts.

PAGE 63 of 589
Net position is broken out into three categories: capital, restricted, and unrestricted.

Investment in Capital Assets ($202.7 million)
Capital assets include land, construction in progress, structures & improvements, furniture & equipment, and infrastructure.

Restricted Net Position ($5.7 million)
These assets are subject to agreements with creditors, developers, grantors, or laws or regulations of other governments.

Unrestricted Net Position (-$4.6 million)
This represents the balance of net position that is neither part of capital assets nor restricted. The negative $4.6 million unrestricted net position deficit is primarily caused by the reporting of the net pension liability and other postemployment benefits (OPEB) liability as required under GASB Statements No. 68 and No. 75, respectively. Of the negative $4.6 million, $5.9 million is OPEB lability which was required by GASB 75. Additional information regarding the OPEB liability is available on pages 47-51 (Note 9) of the ACFR. The City saw a decrease in OPEB liability of $1.1 million in fiscal year ending (FYE) 6/30/23 compared to the prior year as the City’s actuarial report took into account the $100k contribution into the Section 115 Trust opened with CalPERS as well as Capital Assets Include
Land $ 149,584,512 City Hall, Lacy Park, Stoneman School Construction in Progress 5,991,096 San Marino Community Center Structures & Improvements 12,994,878 Crowell Library
Furniture & Equipment 2,434,012 Fire Engine, Police Vehicles, Ambulance Infrastructure 31,722,789 Street Lights, Sidewalks, Pipes $ 202,727,287
Special Revenue Funds Affected
Community Development Projects $ 651,371 SCAQMD, Recycling Grant, PEG Public Safety 551,446 Asset Seizure, COPS Grant
Parks and recreation 19,857 TDA Article 3
Public Works 3,476,959 Gas Tax, Prop A, Prop C, , Measure M, W, & R Funds Debt Service 16,406 Funds Held With Wells Fargo for POB Payments Section 115 Trust 1,004,869 CalPERS CEPPT Trust for Future Pension Payments $ 5,720,908
PAGE 64 of 589
the actuary using a discount rate based on the Trust’s investment returns and not Bond Index rates.

CASH AND INVESTMENTS (Pages 31-34, Note 3)
The Financial Statement also includes detailed information on the City’s cash and investments. As of June 30, 2023, the City had $41.4 million in total cash and investments (a decrease of $1.0 million). 92% of which is in the form of investments authorized by the California Government Code and the City’s investment policy. The remaining 8% of which are held in cash for ongoing operations.

NONCURRENT LIABILITIES (Pages 36-41, Note 6)
The City’s one outstanding bond issue, the 2007 Pension Obligation Bonds (POBs), will be paid off in FY 2023-24. The City transferred $552,034 ($495,000 in principal plus $57,034 in interest) to its Debt Service Fund to service the debt associated with the 2007 POBs. As of June 30, 2023, the outstanding balance was $545,000.

PENSION LIABILITIES (Pages 43-46, Notes 7D-7G)
Total net pension liability, or unfunded liability, is based on projected future benefit payments attributed to the current and past employees’ service, less the assets accumulated to pay those liabilities. The City’s annual payments include a portion to fund current benefits as well as an amount to pay down the unfunded liability. Annual actuarial valuations provide the City with the amount of the contribution that must be paid annually into the plan to ensure that the current unfunded liability is paid off over the following 30 years. The aggregate net pension liability reported in the Statement of Net Position is $41.6 million. The net pension liability increased by $19.1 million this year, primarily due to the changes to the discount rate used by CalPERS.

OPEB LIABILITIES (Pages 47-51, Note 9)
The aggregate net OPEB liability reported in the Statement of Net Position is $5.9 million which is a decrease of $1.1 million from the prior year’s valuation of $7.0 million. The $1.1 million decrease is due to a variety of factors including the City contributing $100,000 to the Section 115 Trust during the year to pay future OPEB costs, as well as a change in the discount rate used from 2.53% up to 4.01%.

GENERAL FUND BUDGETARY COMPARISON (Page 55)
General Fund revenues were under budget by $1.1 million primarily due to budgeted revenues from the American Rescue Plan being $2.2 million less than expected. The City will be recognizing revenues of $2.0 million in Fiscal Year 2023-24 related to the City fully expending all of the American Rescue Plan funds received from the Federal Government. Expenditures were lower PAGE 65 of 589
than the adopted budget by $2.6 million primarily due to budget savings due to personnel vacancies as well as the City not incurring many planned expenditures as certain projects continued into Fiscal Year 2023-24.

FISCAL IMPACT & PROCUREMENT REVIEW
The receiving and filing of the City’s financial statements possesses no fiscal impact and requires no procurement review.

LEGAL REVIEW
The City Attorney's office has reviewed and approved as to form.

RECOMMENDATION
Staff recommends that this annual financial statement be received and filed. If the City Council concurs with staff’s recommendation, an appropriate motion would be:
“I move to receive and file the audited financial statements for the fiscal year ended June 30, 2023.”

ATTACHMENTS

1. Certificate of Achievement for Excellence in Financial Reporting for the Fiscal Year Ended June 30, 2022

2. City of San Marino Annual Comprehensive Financial Report for the Fiscal Year Ended June 30, 2023

3. Auditor’s Communication Letter (SAS 114) for the Fiscal Year Ended June 30, 2023

4. Auditor’s Report on Internal Controls (SAS 115) for the Fiscal Year Ended June 30, 2023
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Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of San Marino
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2022
Executive Director/CEO
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Attachment 1:

City of San Marino Financial Statements
for the Fiscal Year Ended June 30, 2023
PAGE 68 of 589

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CITY OF SAN MARINO
Annual
Comprehensive
Financial Report
For the Fiscal Year Ended June 30, 2023
PAGE 70 of 589
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CITY OF SAN MARINO, CALIFORNIA
Annual Comprehensive Financial Report
For the Fiscal Year Ended June 30, 2023
Table of Contents
Page
Number

INTRODUCTORY SECTION
Letter of Transmittal ................................................................................................................................. i Organizational Chart ............................................................................................................................. vi List of Elected and Administrative Officials ........................................................................................... vii Certificate of Achievement for Excellence in Financial Reporting ....................................................... viii

FINANCIAL SECTION
INDEPENDENT AUDITORS’ REPORT .................................................................................................. 1 MANAGEMENT'S DISCUSSION AND ANALYSIS ................................................................................ 5

BASIC FINANCIAL STATEMENTS
Government-Wide Financial Statements:

Statement of Net Position ....................................................................................................... 13 Statement of Activities ............................................................................................................. 15 Fund Financial Statements:

Balance Sheet – Governmental Funds .................................................................................... 16 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position ............................................................................................. 17 Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds ............................................................................................. 18 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the
Statement of Activities ............................................................................................................. 19 Statement of Net Position – Proprietary Fund ........................................................................ 20 Statement of Revenues, Expenses and Changes in Fund
Net Position – Proprietary Fund .............................................................................................. 21 Statement of Cash Flows – Proprietary Fund ......................................................................... 22 Notes to the Financial Statements.................................................................................................. 23

REQUIRED SUPPLEMENTARY INFORMATION
General Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual ................................................................................................. 54 PAGE 73 of 589

CITY OF SAN MARINO, CALIFORNIA
Annual Comprehensive Financial Report
For the Fiscal Year Ended June 30, 2023
Table of Contents
Page
Number
Schedule of Proportionate Share of the Net Pension Liability ....................................................... 56 Schedule of Plan Contributions ...................................................................................................... 57 Schedule of Changes in the Net OPEB Liability and Related Ratios ............................................. 58 Notes to Required Supplementary Information .............................................................................. 61

COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES
Combining Balance Sheet – Nonmajor Governmental Funds ....................................................... 62 Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Nonmajor Governmental Funds .................................................................... 68 Budgetary Comparison Schedules – Special Revenue Funds:

State Gas Tax ......................................................................................................................... 74 Community Development Block Grant .................................................................................... 75 Prop. A Transit ......................................................................................................................... 76 Air Quality ................................................................................................................................. 77 TDA Article 3 ............................................................................................................................ 78 Prop. C Transit ......................................................................................................................... 79 Asset Seizure ........................................................................................................................... 80 California Recycling Grant ....................................................................................................... 81 COPS Grant ............................................................................................................................. 82 STPL ........................................................................................................................................ 83 Measure W Clean Water ......................................................................................................... 84 Measure R ............................................................................................................................... 85 OTS Grant Fund ....................................................................................................................... 86 PEG Fund ................................................................................................................................ 87 Used Oil Grant ......................................................................................................................... 88 Drought Education Fund .......................................................................................................... 89 Measure M ............................................................................................................................... 90 Budgetary Comparison Schedule – Capital Projects Fund ........................................................... 91 Budgetary Comparison Schedule – City Debt Service Fund ......................................................... 92 PAGE 74 of 589

CITY OF SAN MARINO, CALIFORNIA
Annual Comprehensive Financial Report
For the Fiscal Year Ended June 30, 2023
Table of Contents
Page
Number

STATISTICAL SECTION
Financial Trends:

Net Position by Component – Last Ten Fiscal Years ..................................................................... 93 Changes in Net Position – Last Ten Fiscal Years .......................................................................... 94 Fund Balances of Governmental Funds – Last Ten Fiscal Years .................................................. 95 Changes in Fund Balances of Governmental Funds – Last Ten Fiscal Years .............................. 96 Revenue Capacity:

Property Tax Dollar Breakdown ..................................................................................................... 97 Direct and Overlapping Property Tax Rates – Last Ten Fiscal Years ............................................ 98 Assessed and Estimated Actual Values of Taxable Property – Last Ten Fiscal Years ................. 99 Top Ten Property Taxpayers – Current Year and Nine Years Ago .............................................. 100 Assessed Value of Taxable Property by Category – Last Ten Fiscal Years ................................ 101 Property Tax Levies and Collections – Last Ten Fiscal Years ..................................................... 102 Debt Capacity:

Direct and Overlapping Debt ........................................................................................................ 103 Demographic and Economic Information:

Demographic and Economic Statistics – Last Ten Calendar Years ............................................. 104 Taxable Sales by Category .......................................................................................................... 106 Operating Information:

Full-Time Equivalent City Employees by Function – Last Ten Fiscal Years ................................ 107 Operating Indicators by Function – Last Ten Fiscal Years .......................................................... 108 Capital Asset Statistics by Function – Last Ten Fiscal Years ...................................................... 109 PAGE 75 of 589

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CITY OF SAN MARINO
2200 Huntington Drive
San Marino, CA 91108-2639
www.cityofsanmarino.org
October 27, 2023
Honorable Mayor, Vice Mayor, and City Councilmembers:

The Finance Department is excited to present to the City Council the City of San Marino’s (City) third Annual Comprehensive Financial Report (ACFR), formally known as the Comprehensive Annual Financial Report for the fiscal year ended June 30, 2023. The ACFR is intended to provide readers with a clearly articulated, user-friendly reporting of the City’s financial affairs. Within the ACFR, readers will find reporting on all funds and account groups for the City. This report consists of management’s representations concerning the finances of the City. As such, management assumes full responsibility for the completeness and reliability of the information contained in this report, based upon a comprehensive internal control framework it established for this purpose.

Because the cost of internal controls should not exceed anticipated benefits, the objective is to provide reasonable assurance, rather than absolute assurance, that the financial statements are free of any material misstatements.

State Law requires the City to prepare an annual financial report. This report fulfills that obligation. Lance, Soll & Lunghard, LLP, an independent firm of certified public accountants, has issued an unmodified opinion on the financial statements of the City for the year ended June 30, 2023. This will be the fifth year in a row that the City was able to achieve a clean opinion from the auditors with no material weaknesses or significant deficiencies. The independent auditors’ report is located at the front of the financial section of this ACFR. The ACFR has been prepared in conformity with Generally Accepted Accounting Principles (GAAP) and the financial reporting requirements prescribed by the Governmental Accounting Standards Board (GASB). These reporting requirements specify that management provide a narrative introduction, overview and analysis to accompany the financial statements in the form of a Management’s Discussion and Analysis (MD&A). The MD&A, which immediately follows the independent auditors’ report, complements this letter of transmittal and should be read in conjunction with it.

THE PRIMARY GOVERNMENT
The City is a General Law city and operates under a Council/Manager form of government. The City Council consists of five members that are elected at-large and typically serve staggered, four-year terms. The Mayor and Vice Mayor seats typically are one-year in duration and are selected by the Council Members. The City Council serves as the City’s primary governing body. The City Council additionally appoints the City Manager, the City Attorney and the City Treasurer. The City Manager oversees daily functions and ensures that directions of the City Council are carried out. The City provides Public Safety (Police and Fire), Community Development, Planning, Building and Safety, Parks and Public Works, Code Enforcement, Recreation Programs, Library Services, Financial Management, and Administrative Services mostly with City employees.

THE CITY OF SAN MARINO
Situated 12 miles from the majestic foothill mountains, the beautiful City of San Marino, California (population 11,780 as of January 1, 2023 U.S. Census Bureau) is located northeast of Los Angeles in the San Gabriel Valley.

Incorporated in 1913, this uniquely residential community is known for expansive properties surrounded by beautiful gardens, wide streets, well-maintained parkways, and top performing schools. i
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A city of 3.77 square miles, San Marino is home to the renowned Huntington Library, Art Collections, and Botanical Gardens. With a focus on resident services and community, the City is recognized for its police and fire services, library, parks and community amenities, and planning and zoning that distinguish and maintain the community’s high-quality residential character. The intention of the City’s founding fathers was a high-quality, crime-free residential area that provides great schools, parks, and an exclusive lifestyle; the City’s physical form today reflects those early values and development patterns.

ACCOUNTING SYSTEM AND BUDGETARY CONTROL
Accurate accounting of the City’s assets is essential to safeguard against loss and misrepresentation. The City’s system of accounting establishes solid control of the City’s financial assets and allows for budgeting and reliable performance reporting. It provides for the proper recording of financial transactions and lends itself to the establishment of accurate financial statements.

The City’s adopted financial policy states an annual budget needs to be adopted by the City Council by at least June 30 of each fiscal year. The City Council is presented each year with a new annual operating and capital improvement project budget. Part of the financial policy also requires the City to publish quarterly financial reports and a present a 30-Year Long-Range Financial Projection to the City Council annually.

CAPITAL IMPROVEMENT PROJECTS
The City’s Capital Improvement Program (CIP) is a component of the budget process and addresses the City’s short and long-term capital needs. The CIP includes a plan to effectively maintain existing infrastructure as well as provide new facilities to support population growth and replace older assets that are no longer useful or are unsafe.

The City has over 119.5 lane miles and 100 sidewalk miles covering the 3.77 square miles, as well as over 2,300 streetlights, 13 Civic Facilities, 1 Community Center, and 1 park.

During this reporting period, the City focused its resources on: Renovation of the San Marino Community Center, Street Rehabilitation, Street Striping/Marking Program, Streetlight Management Plan, Citywide Sidewalk Replacement, Police Department Utilization Study, Culvert Replacement Program, Street Tree Management Program, Citywide HVAC Upgrades, and other projects which benefited the citizens of San Marino.

LOCAL ECONOMIC CONDITION AND OUTLOOK
San Marino remains one of America’s wealthiest communities. At greater than $235,000, the average household income in San Marino in 2022 was two times that of the State of California. The median age of San Marino residents in 2022 is 45.4, while the median age in the State of California as a whole is reported at 37 years (2022 US Census Bureau). San Marino is an elegant community that benefits from a strong property tax base. It is thus the case that moderate economic growth and moderate incremental cost of services changes are key economic factors that condition budget development.

The operating budget is funded almost entirely from the General Fund, with some additional funding from restricted transportation and public safety funds. The City’s General Fund is healthy. Its unassigned fund balance is projected to grow by $1.8 million to $19.5 million by June 30, 2024, which will be equal to 54% of FY 2023-24 General Fund Group estimated revenues. The property tax makes up approximately 70% of the collection base of the City’s General Fund, and this income has been a stable provider. As goes the property tax in San Marino, in other words, so goes the City’s financial underpinnings. The assumption for property tax growth in Fiscal Year 2023-24 is 5.5%.

The adopted capital budget consists of $5.6 million for new projects, $8.7 million for unfinished projects from the prior year, and approximately $1.0 million for new equipment. While funding for capital equipment comes from the General Fund, funding for capital improvements comes primarily from our Capital Projects Fund reserves, along with some external funding sources. The City Council has also directed the transfer of excess reserves from the General Fund to the Capital Projects Fund, thereby funding our aggressive capital projects campaign for a five-year period.
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In putting together the budget for the year ended June 30, 2024, we assumed a prudent approach as the local economy recovers from impacts due to the COVID-19 pandemic and the continuation of a slowly growing economy.

We have forecasted revenues to grow at a modest pace in anticipation of this. The adopted budget includes total revenues of $39.6 million and total expenditures of $49.2 million ($34.0 million in operating expenditures and $15.2 million of capital expenditures). Please see the following graph for a breakdown of our revenue sources and expenditure categories:

As the City continues to recover economically from the post COVID-19 pandemic and uncertainty of the macro and micro economic environment, the City is well-positioned for success in FY 2023-24 due to the City’s conservative and prudent fiscal decisions in focusing on improved services to meet the community’s needs and capital infrastructure.

LONG-TERM FINANCIAL PLANNING
The City has experienced a decrease in population growth of approximately -3.8% from 2021 to 2022 (US Census Bureau). However, the fiscal strength of property values continues to outpace most cities in LA County, which resulted in General Fund revenues increasing by approximately 4.3% during that same period of time. Property tax, sales tax and funding from the federal government from the American Rescue Plan are the three major contributors to the increase and current estimates indicate a continued, modest amount of growth for the upcoming years.

The City has a reserve policy that maintains a general fund balance of at least forty percent (40%) of fiscal year (FY) budgeted revenues. The purpose for this allowance is to provide for various identified contingencies as well as allow for normal operation of regular city services.

The annual budget process includes long-range, 5-year planning for the spending of money on the City’s CIP. In many cases, unique funds were established to separate monies received for specific programs, and when fund balances reach the level necessary to implement such programs, the City plans, through the budget process, for the establishment, maintenance, and replacement of infrastructure and capital improvements.

MAJOR MILSTONES IN FISCAL YEAR 2022-23
The financial state of the City remains strong, with most tax revenue increasing even as the State of California continued to feel the effect of the COVID-19 pandemic. The strength of the City’s finances is a relational by-product of clearly defined, consistent management practices, and responsible stewardship of the City’s assets. The following are undertakings that have helped to strengthen the City’s financial stability.

1. Continued investment into the Capital Projects Fund
The Capital Projects Fund gets its resources from the General Fund, and the City has a history of making annual transfers from the General Fund to the Capital Projects Fund. The City Council authorized the transfer of $15.1 million in FY 2017-18, $5.1 million in FY 2019-20, $2.9 million in FY 2020-21, $2.3 million in FY 2021- 22, and $3.5 million in FY 2022-23 of General Fund reserves to the Capital Projects Fund. This represented a very large infusion of capital into the Capital Projects Fund and was intended to provide resources for capital projects.
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2. Commenced the construction phase of the San Marino Community Center Renovation The City broke ground on the renovation of the San Marino Community Center. The project is budgeted at $8.4 million and opened in September 2024.

3. Continued to prefund employer pension contributions through the CalPERS’ California Employers’ Retiree Benefit Trust (CERBT) program.

The City opened up a Section 115 Trust with CalPERS’s CERBT program in Fiscal Year 2020-21 with an initial contribution of $500,000. In Fiscal Year 2022-23, an additional contribution of $100,000 was made with the purpose of prefunding future employer medical pension contributions.

4. FY 2022-23 ACFR awarded the Certificate of Achievement for Excellence in Financial Reporting by Government Finance Officers Association’s (GFOA).

This was the first time the City received the Certificate of Achievement for Excellence in Financial Reporting by Government Finance Officers Association’s (GFOA).

5. Continued Delivery of Accurate and Comprehensible Financial Reports The Department of Finance prepares and presents the Quarterly Financial Reports to the City Council per the City’s Financial Policies. The Department continues to distribute monthly budget to actuals financial reports to management for the purpose of identifying areas of spending patterns not in keeping with the approved budget.

As such, management is easily able to identify problems, understand the financial impact of the problems, and establish corrective action plans for meeting organizational and citywide goals.

INDEPENDENT AUDIT
For the fiscal year ended June 30, 2023, the City’s financial statements were audited by the certified public accounting firm of Lance, Soll & Lunghard, LLP to ensure that the financial statements of the City were free of material misstatement. The audit a) examined activities, documents, and disclosures used to create the financial statements, b) assessed the accounting principles used by management, and c) evaluated the overall financial statement presentation. The results of the audit are as follows:
 The City’s financial statements have no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards; and
 Internal control over financial reporting and its operations was considered free from material weaknesses and significant deficiencies; and
 Financial statements 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 of San Marino, California, as of June 30, 2023.

In this, it is my goal to provide readers and citizens an accurate depiction of the financial standing and activities regarding the City. Please reference the MD&A section of this report for a more complete and detailed accounting of financial performance for the fiscal year ended June 30, 2023.

AWARDS & ACKNOWLEDGEMENTS
The Government Finance Officers Association’s (GFOA) awarded the Certificate of Achievement for Excellence in Financial Reporting for the FY 2021-22 ACFR. This was the first time the City was recognized by the GFOA. The City will be submitting this year’s ACFR to the GFOA to determine its eligibility for the FY 2022-23 Certificate.

The GFOA awarded a Distinguished Budget Presentation Award to the City on September 18, 2023 for its operating and capital budget for fiscal year 2023-24. The award represents a significant achievement by the entity. It reflects the commitment of the governing body and staff to meeting the highest principles of governmental budgeting. In order to receive the budget award, the entity had to satisfy nationally recognized guidelines for effective budget iv
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presentation. These guidelines are designed to assess how well an entity's budget serves as a policy document, a financial plan, an operations guide and a communications device. The GFOA Distinguished Budget Presentation Award is valid for only one year.

The California Society of Municipal Finance Officers (CSMFO) awarded the Certificate for Excellence in Budgeting to the City on February 10, 2023 for its operating and capital budget for fiscal year 2022-23. In order to be awarded a Certificate of Excellence in Budgeting, a government unit must receive a minimum of seventy points out of eighty points maximum based on guidelines established by CSMFO. The CSMFO Certificate of Excellence in Budgeting is valid for only one year. We believe our adopted operating and capital budget continues to meet the requirements of the CSMFO Certificate of Excellence in Budgeting and have submitted it for recognition for the fiscal year ended June 30, 2024.

This report is a joint effort by many people from many different areas of responsibility. The preparation of this report could not have been accomplished without the hard work and team effort of the staff of the Finance Department, in particular, Accounting Manager/Controller Mark Siegfried and Account Clerks Diana Molina and Lisa Carlson.

I want to express my appreciation to all members of the various City Departments who assisted and contributed to its preparation. I would also like to thank the Mayor; Vice Mayor, Councilmembers; and the Executive Team for their continuing efforts in administering the financial operations of the City responsibly and prudently.

Respectfully submitted,

Paul Chung Mark Siegfried
Finance Director Accounting Manager/Controller
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City of San Marino
Organizational Chart
Residents
City Council
City Attorney City Manager
City Manager’s Office Community
Development
Community Services Finance
Fire Human Resources
Parks & Public Works Police
City Treasurer
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City Council
Mayor
Steve Talt
Vice-Mayor
Steven W. Huang, DDS
Council Member
Tony Chou
Council Member
Calvin Lo
Council Member
Gretchen Shepherd Romey
Appointed Officials
City Treasurer
Annie Han
City Attorney
Joseph Montes
Executive Team
Acting City Manager
Mario Rueda
Finance Director
Paul Chung
Human Resources Director
Lizette Guerrero
Community Development
Director
Isidro Figueroa
Police Chief
John Incontro
Acting Fire Chief
Mark Dondanville
Parks & Public Works Director
Amber Shah
Community Services Director
Cathi Johnson
Community Engagement
Manager
Nicole Cuadras
City Leaders
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Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of San Marino
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2022
Executive Director/CEO
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1611 E. Fourth Street, Suite 200
Santa Ana, CA 92701
(714) 569-1000
203 N. Brea Blvd, Suite 203
Brea, CA 92821
(714) 672-0022
21 Waterway Avenue, Suite 30089
The Woodlands, TX 77380
(936) 828-4587
2151 River Plaza Dr., Suite 150
Sacramento, CA 95833
(916) 503-9691
24422 Avenida de la Carlota, Suite 275
Laguna Hills, CA 92653
(949) 829-8299
www.lslcpas.com
INDEPENDENT AUDITORS’ REPORT
To the Honorable Mayor and Members of the City Council
City of San Marino, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of Cit of San Marino, California (the “City”), as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2023, and the respective changes in financial position, 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 and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Emphasis of Matter
Change in Accounting Principle
As described in Note 6 to the financial statements, in 2023, the City adopted new accounting guidance GASB Statement No. 96, Subscription Based Information Technology Arrangements. Our opinion is not modified with respect to this matter.

Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with 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.

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To the Honorable Mayor and Members of the City Council
City of San Marino California
Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions.

Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

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

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

Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, budgetary comparison schedule for the General Fund, and the required pension and other postemployment benefits schedules, as listed on the table of contents, 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. 2 PAGE 86 of 589
To the Honorable Mayor and Members of the City Council
City of San Marino California
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The accompanying combining and individual fund financial statements and schedules (supplementary information) are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements.

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

Other Information
Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditor’s report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.

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

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated October 27, 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 the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering City’s internal control over financial reporting and compliance.

Brea, California
October 27, 2023
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MANAGEMENT’S DISCUSSION AND ANALYSIS
As management of the City of San Marino, we offer readers of the City’s basic financial statements this narrative overview and analysis of the financial activities of the City for the fiscal year ended June 30, 2023. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in the City’s basic financial statements.

FINANCIAL HIGHLIGHTS
 The City’s net position is $203.8 million at June 30, 2023. The net position increased by $8.6 million, or

4.4%, during the year. Revenues increased by $3.5 million, or 10.8%, and expenses decreased by $3.7 million, or 12.2%, over the prior year amounts. Expenses decreased from the prior year due to reduced expenses from the Public Safety and Community Development divisions.  Of the City’s $203.8 million in net position, $202.7 million is net investment in capital assets; $5.7 million is restricted by enabling authorization and third-party requirements; and the remaining negative $4.6 million represents the unrestricted net position deficit. The negative $4.6 million unrestricted net position deficit is primarily caused by the reporting of the net pension liability and other postemployment benefits (OPEB) liability as required under GASB Statements No. 68 and No. 75, respectively.  The aggregate net pension liability reported in the Statement of Net Position is $41.6 million. The net pension liability increased by $19.1 million, or 84.8%, this year. This increase is due to salary increases of 4%, and required employer contribution increases being offset by the City’s proportionate share of the net pension liability of the various CalPERS’ risk pools decreasing by 44%. The aggregate net OPEB liability reported in the Statement of Net Position is $5.9 million. The City’s OPEB liability decreased by $1.1 million, or 16.0%, this year which is directly related to the change in the discount rate used by the City’s actuary as well as the City opening a Section 115 Trust to pay for future OPEB costs.  At June 30, 2023, the City’s governmental funds (General, Special Revenue, Debt Service and Capital Projects funds) have combined ending fund balances totaling $38.1 million. Expenditures exceeded revenues in the governmental funds by $2.5 million during the year. The increase in expenditures is due mostly to construction of the San Marino Community Center which is set to open in Fiscal Year 2023-24.  The General Fund’s unassigned fund balance as of June 30, 2023 is $16.2 million. This represents a reserve ratio of 56% measured against annual General Fund expenditures and 49% against annual General Fund revenues. The City’s Financial Policies specify that the General Fund unassigned fund balance shall be approximately 40% of General Fund revenues.  Expenditures and net other financing uses exceeded revenues in the General Fund for the year by $0.6 million. This was mostly due to strong growth in property tax revenues during the year of $0.6 million, or 3.5% offset by the City Council approving a $3.5 million transfer to the Capital Projects Fund to fund future infrastructure projects. Expenditures increased by $2.8 million, or 10.5%, due to the salary increase per the approved Memorandum of Understandings with the various City employee associations that was effective July 1, 2022.

OVERVIEW OF THE FINANCIAL STATEMENTS
This discussion and analysis are intended to serve as an introduction to the City’s basic financial statements. The basic financial statements consist of three components: 1) Government-wide Financial Statements, 2) Fund Financial Statements – both Governmental and Proprietary, and 3) Notes to Basic Financial Statements.

This report also contains required supplementary information in addition to the basic financial statements.

Government-wide Financial Statements. The government-wide financial statements are designed to provide readers with a broad overview of the City’s finances, in a manner similar to a private-sector business. There are two government-wide financial statements: the Statement of Net Position and the Statement of Activities. 5 PAGE 89 of 589
The Statement of Net Position presents financial information about all of the City’s assets, deferred outflows of resources, liabilities, and deferred inflows of resources with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating.

The Statement of Activities presents information showing how the City’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave).

Government-wide financial statements distinguish functions of an organization that are principally supported by taxes and intergovernmental revenues (“governmental activities”) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (“business-type activities”). The governmental activities of the City include general government, public safety, community development, recreation, parks and public works, library and interest on long-term debt. The City has no business-type activities.

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

Governmental Funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in assessing a government’s near-term financing requirements.

Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.

The City maintains twenty-two (22) individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures and changes in fund balances for the General Fund and the City’s Capital Projects Fund; each is considered to be a major fund. Data from the other twenty (20) governmental funds are combined into a single aggregated presentation. Individual fund data for each of these nonmajor governmental funds is provided in the form of combining statements in the combining and individual fund statements and schedules section of this report.

The City adopted an annual appropriated budget for all the funds except for the County Park Bond and the Homeland Security Grant special revenue funds as discussed in Note 1 of the Required Supplementary Information (RSI). A budgetary comparison statement has been provided for each of the governmental funds that adopted a budget to demonstrate compliance with its own budget.

Proprietary Funds. The City maintains one internal service fund, one type of proprietary fund.

Internal service funds are an accounting device used to accumulate and allocate costs internally among the City’s various functions. The City uses an internal service fund to account for capitalized equipment. Because this service benefits governmental functions, it is included within governmental activities in the government-wide financial statements.

Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The proprietary fund financial statements provide information for the City’s one internal service fund. 6 PAGE 90 of 589
Notes to the Financial Statements. The notes provide additional information that is necessary to acquire a full understanding of the data provided in the government-wide and fund financial statements.

Other Information. In addition to the basic financial statements and accompanying notes, this report also presents RSI. RSI can be found immediately following the Notes to the Financial Statements, and includes a budgetary comparison schedule for the General Fund and supplemental information on the City’s pension and OPEB plans.

The combining statements, referred to earlier in connection with nonmajor governmental funds, are presented immediately following the required supplementary information on pensions and OPEB.

THE CITY AS A WHOLE
Our analysis below focuses on the net position and changes in net position presented in Table 1 and Table 2, respectively.

Net Position. The City’s net position can serve as a useful indicator of the City’s financial position. As of June 30, 2023, the City’s net position is $203.8 million, which was up $8.6 million for the year. Net Position consists of three categories: net investment in capital assets, restricted, and unrestricted. The largest portion of the City’s net position, approximately $202.7 million at June 30, 2023, is the City’s net investment in capital assets (i.e., land, buildings, machinery, equipment, and infrastructure). Because capital assets are used to provide service to citizens, they are not available to fund the City’s day-to-day activities. Net investment in capital assets increased by $7.1 million for the year as additions to capital assets exceeded depreciation on capital assets.

Capital assets are further discussed later in this analysis.

The restricted net position totaled $5.7 million at June 30, 2023. These are resources subject to external restrictions on how they can be used. Restricted net position increased by $0.3 million this year, due primarily to unspent revenues restricted for transportation-related purposes. The remaining unrestricted net position was a negative $4.6 million. The primary reason for this negative unrestricted net position is the City’s pension and other post-employment benefit (OPEB) liabilities. The net pension liability at June 30, 2023 is $41.6 million and the OPEB liability is $5.9 million.

Changes in Net Position. During the year, the net position for the City increased by $8.6 million, or 4.4%.

Revenues increased by $3.5 million, or 10.8%, and expenses decreased by $3.7 million, or 12.2%, over the prior year amounts.

The $8.6 million increase in net position for FY 2022-23 was expected as the City pulled out of the COVID-19 pandemic which started during the fourth quarter of the fiscal year ended June 30, 2020. The COVID-19 pandemic affected various revenue streams such as sales taxes, business license taxes and interest income which started to return to levels noted prior to the pandemic. In addition, charges for services related to the Recreation and Library departments increased from last year when the City started to reopen and provide more services and programs.

Program revenues increased by $1.3 million and general revenues increased by $2.2 million. The general revenue increase was attributable mostly to strong growth in property tax revenues.

The overall $3.7 million decrease in expenses was driven by a decrease in expenses for the Public Safety and Community Development divisions.
7 PAGE 91 of 589
2023 2022 Change in $ Change in %
Current and Other Assets $ 42,897,212 $ 44,825,955 $ (1,928,743) -4.3% Capital Assets 203,858,541 195,582,711 8,275,830 4.2%
Total Assets 246,755,753 240,408,666 6,347,087 2.6%
Deferred Outflows of Resources
Deferred Pension-Related Items 18,417,184 8,501,480 9,915,704 116.6% Deferred Other Post-Employment
Benefits-Related Items 2,161,415 2,402,378 (240,963) -10.0% Total Deferred Outflows of Resources 20,578,599 10,903,858 9,674,741 88.7% Current Liabilities 7,345,248 5,075,074 2,270,174 44.7% Long-term Liabilities 50,191,943 32,187,212 18,004,731 55.9% Total Liabilities 57,537,191 37,262,286 20,274,905 54.4% Deferred Inflows of Resources
Deferred Pension-Related Items 3,166,823 16,859,518 (13,692,695) -81.2% Deferred Other Post-Employment
Benefits-Related Items 2,788,933 1,940,512 848,421 43.7% Total Deferred Inflows of Resources 5,955,756 18,800,030 (12,844,274) -68.3% Net Position:

Net Investment in Capital Assets 202,727,287 195,581,766 7,145,521 3.7% Restricted 5,720,908 5,421,201 299,707 5.5%
Unrestricted (4,606,790) (5,752,759) 1,145,969 -19.9%
Total Net Position $ 203,841,405 $ 195,250,208 $ 8,591,197 4.4% Table 1
Condensed Statement of Net Position
8 PAGE 92 of 589
2023 2022 Change in $ Change in %
Revenues:

Program Revenues
Charges for Services & Special Taxes $ 7,411,184 $ 6,655,630 $ 755,554 11.4% Operating Grants & Contributions 1,765,001 1,994,903 (229,902) -11.5% Capital Grants & Contributions 1,172,585 373,503 799,082 213.9% Total program revenues 10,348,770 9,024,036 1,324,734 14.7% General Revenues
Property Taxes 18,900,735 18,265,599 635,136 3.5%
Property Taxes in Lieu of Motor Vehicle Fees 2,356,542 2,238,910 117,632 5.3% Utility Users Taxes 2,175,428 1,873,500 301,928 16.1%
Business License Taxes 444,375 406,759 37,616 9.2%
Sales Taxes 591,677 526,987 64,690 12.3%
Franchise Taxes 712,639 625,255 87,384 14.0%
Use of Money & Property 584,644 (470,936) 1,055,580 -224.1% Other Revenues 44,485 156,216 (111,731) -71.5%
Total general revenues 25,810,525 23,622,290 2,188,235 9.3% Total revenues 36,159,295 32,646,326 3,512,969 10.8%
Expenses:

General Government 4,643,659 4,611,101 32,558 0.7%
Public Safety 12,317,332 15,698,333 (3,381,001) -21.5%
Community Development 1,276,772 2,154,836 (878,064) -40.7% Recreation 1,664,964 1,433,822 231,142 16.1%
Parks & Public Works 5,619,188 4,908,159 711,029 14.5%
Library 1,259,083 1,746,247 (487,164) -27.9%
Interest on Long-Term Debt 110,732 81,328 29,404 36.2%
Total expenses 26,891,730 30,633,826 (3,742,096) -12.2% Changes in net position 9,267,565 2,012,500 7,255,065 360.5% Net Position:

Beginning of year as originally reported 195,250,208 193,237,708 2,012,500 1.0% Restatement (676,368) (676,368) - 100.0%
Beginning of year, as restated 194,573,840 193,237,708 1,336,132 0.7% Net Position at End of Year $ 195,250,208 203,841,405 $ 8,591,197 $ 4.4% Table 2
Condensed Changes in Net Position
9 PAGE 93 of 589
Governmental Activities
Table 3, below, presents the cost of services of each of the City’s departmental functions – general government, public safety, community development, recreation, parks & public works and library, – as well as each program’s net cost of services (total cost less program revenues generated by the activities).

The resulting net cost of services represents the amount of general tax revenues that were needed this year to finance the services of each of these functions. Note that the Public Safety special tax is considered a program revenue, and so $7.8 million of general revenues were needed this year to finance public safety services, in addition to the Public Safety special tax and other public safety program revenues.

Total Cost Net Cost
of Services of Services
General Government $ 4,643,659 $ 3,529,913
Public Safety 12,317,332 7,593,394
Community Development 1,276,772 36,038
Recreation 1,664,964 617,859
Parks and Public Works 5,619,188 3,642,335
Library 1,259,083 1,012,689
Interest on Long Term Debt 110,732 110,732
Total $ 26,891,730 $ 16,542,960
Table 3
Cost of Services
The $16.5 million net cost of services this year decreased from $21.6 million net cost of services in FY 2021-22.

The decrease is due to decreases in the net cost of services for each of the various functions due to prudent spending from uncertainty of future revenues as the COVID-19 pandemic would down as well as due to a revised fee schedule which took effect September 1, 2021.

THE CITY’S FUNDS
The governmental funds balance sheet is shown on page 16 of this report. The combined fund balance of $38.1 million decreased during Fiscal Year 2023 by $3.0 million. The combined fund balance in the prior year was $41.1 million. The decrease is due mostly to expenditures and net other financing uses in the General Fund exceeding revenues.

The General Fund is the main operating fund of the City. As of June 30, 2023, the total fund balance of the General Fund is $17.6 million, an increase of $0.6 million from the prior year. General Fund revenues increased by $2.2 million, or 7.0%, compared to FY 2021-22. The overall increase in General Fund revenues was driven by an increase in property taxes due to a strong real estate market. Expenditures increased by $2.8 million, or

10.5%. The primary reason for the increase was the salary related expense increases that are part of the Memorandum of Understandings with the various City employee associations that was effective July 1, 2022 as well as due to inflationary pressures related to materials and supplies expenses.

General Fund revenues, before transfers out for capital programming and debt service, were $3.9 million greater than expenditures. This excess of revenue over expenditures, stated otherwise, represents an effective “retention” rate of 12% of revenue before transfers. In fact, a 14% “retention” before transfers is the City’s three-year average.

The City’s Capital Projects Fund began the year with accumulated reserves (assigned fund balance) of $18.9 million. During the year, the fund balance decreased by $3.1 million. This is due to the City’s construction of the San Marino Community Center which is to open in Fiscal Year 2023-24. The City Council’s action to transfer $3.5 million from the General Fund to this fund in FY 2022-23 continues to reinvigorate the City’s planning for capital construction programming moving forward. 10 PAGE 94 of 589
The City has one proprietary fund, its Capitalized Equipment Internal Service Fund. The fund accumulates resources through internal charges based on depreciation for equipment replacement.

General Fund Budgetary Highlights
During the year, with the recommendation from the City’s staff, the City Council revised the City budget several times which is normal business practice. Adjustments were made as the City’s staff requested additional appropriations to cover the cost of projects that either had change orders for additional work, or the cost at the beginning of the project was underestimated. Adjustments were also made as department heads requested increases or decreases to their budgets to maintain their current level of services. By policy, all amendments modifying the adopted budget are approved by the City Council.

The budgetary comparison schedule for the General Fund is shown on page 57 of this report. Actual General Fund revenues came in $1.1 million lower than the final budget amount this year as this was due to the City recognizing only $0.4 million of American Rescue Plan Fund revenues while the City budgeted $2.6 million. The City will be recognizing the remaining funds received from the American Rescue Plan as revenues in Fiscal Year 2023-24. Actual General Fund expenditures were $2.6 million less than final appropriations for the year. The largest savings were in the areas of community development and general government. The largest negative variance was for public safety due to workers’ compensation costs related to personnel on leave due to injuries that occurred on the job.

CAPITAL ASSET AND DEBT ADMINISTRATION
Capital Assets
At the end of FY 2022-23, the City had $203.9 million invested in the range of capital assets shown in Table 4 below. This amount represents a net increase (including additions and deductions) of $7.9 million over the prior year, owing primarily to completed infrastructure projects. 2023 2022
Land $ 149,584,512 $ 149,584,512
Construction in Progress 5,991,096 776,056
Structures & Improvements 12,994,878 13,296,680
Furniture & Equipment 2,434,012 2,048,598
Lease assets 269,154 333,950
Subscription assets 882,275 -
Infrastructure 31,702,614 29,876,865
Total $ 203,858,541 $ 195,916,661
Governmental
Activities
Net of Depreciation
Capital Assets
Table 4
More detailed information related to the City’s capital asset activity including discussion regarding relevant disclosures related to changes in balances during the year and depreciation expense charged to function/programs of the primary government may be found at Note 4 in the Notes to the Financial Statements. 11 PAGE 95 of 589
Debt
As of June 30, 2023, the City had an outstanding debt balance of $0.5 million related to taxable pension obligation bonds. The City continues to pay down the balance based on scheduled annual payments per the bond agreement. During the year ended June 30, 2023, the City made principal retirement payments of $495,000 and interest payments of $57,034. The City will retire the debt during the year ended June 30, 2024. More detailed information related to the City’s long-term debt including discussion regarding future annual required payments and relevant disclosures may be found at Note 6 in the Notes to the Financial Statements.

CONTACTING THE CITY’S FINANCIAL MANAGEMENT
This financial report is designed to provide our citizens, taxpayers, customers, investors, and creditors with a general overview of the City’s finances and to show the City’s accountability for the money it receives. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Finance Department, at the City of San Marino, 2200 Huntington Drive, San Marino, California 91108. The telephone number is (626) 300-0708.
12 PAGE 96 of 589

CITY OF SAN MARINO, CALIFORNIA
Statement of Net Position
Governmental
Activities
ASSETS
Cash and investments $ 40,327,049
Receivables (net of uncollectibles):

Accounts 163,270
Taxes 1,077,155
Accrued interest 118,106
Due from other governments 14,918
Notes and loans 5,157
Restricted assets:

Cash and investments 1,004,869
Cash with fiscal agent 41,710
Inventories 106,552
Prepaid costs 38,426
Capital assets (not being depreciated) 155,575,608
Capital assets (net of accumulated depreciation/amortization) 48,282,933 Total assets 246,755,753

DEFERRED OUTFLOWS OF RESOURCES
Pension-related 18,417,184
OPEB-related 2,161,415
Total deferred outflows of resources 20,578,599

LIABILITIES
Accounts payable 1,326,649
Pass-through payable 476
Due to other governments 135,658
Accrued liabilities 1,052,556
Accrued interest 21,768
Deposits payable 6,971
Unearned revenue 2,298,690
Noncurrent liabilities:

Due within one year: bonds, notes, leases, SBITA, claims, and compensated absences 2,502,480
Due in more than one year:

Bonds, notes, leases, SBITA, claims and
compensated absences 2,689,771
Net pension liability 41,638,587
Net OPEB liability 5,863,585
Total liabilities 57,537,191

DEFERRED INFLOWS OF RESOURCES
Pension-related 3,166,823
OPEB-related 2,788,933
Total deferred inflows of resources 5,955,756

NET POSITION
Net investment in capital assets 202,727,287
Restricted:

Public safety 551,446
Community development 651,371
Parks and recreation 19,857
Public works 3,476,959
Debt service 16,406
CEPPT Investments Trust 1,004,869
Unrestricted (4,606,790)
Total net position $ 203,841,405
June 30, 2023
Primary Government
See accompanying notes to financial statements.
13 PAGE 97 of 589
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14 14
PAGE 98 of 589

CITY OF SAN MARINO, CALIFORNIA
Statement of Activities
For the Year Ended June 30, 2023
Operating Capital
Charges for Contributions Contributions Governmental
Expenses Services and Grants and Grants Activities
Functions/Programs:

Primary government:

Governmental activities:

General government $ 5,102,929 $ 310,890 $ 802,856 $ - $ (3,989,183) Public safety 12,582,689 4,452,758 271,180 - (7,858,751) Community development 1,487,856 1,239,025 1,709 - (247,122) Recreation 1,664,964 1,042,594 4,511 - (617,859)
Parks and public works 4,451,328 167,623 636,645 1,172,585 (2,474,475) Library 1,491,233 198,294 48,100 - (1,244,839)
Interest on long-term debt 110,731 - - - (110,731)
Total governmental activities 26,891,730 7,411,184 1,765,001 1,172,585 (16,542,960) Total primary government $ 26,891,730 $ 7,411,184 $ 1,765,001 $ 1,172,585 (16,542,960) General revenues:

General revenues:

Property taxes 18,900,735
Sales taxes 591,677
Franchise taxes 712,639
Business licenses taxes 444,375
Utility users tax 2,175,428
Other taxes 2,356,542
Use of money and property 584,644
Other 44,485
Total general revenues 25,810,525
Change in net position 9,267,565
Net position-beginning as restated 194,573,840
Net position-ending $ 203,841,405
Program Revenues
Net (Expenses)
Revenues and
Changes in Net
Position
See accompanying notes to financial statements.
15 PAGE 99 of 589

CITY OF SAN MARINO, CALIFORNIA
Balance Sheet
Governmental Funds
June 30, 2023
Total Total
Nonmajor Governmental
General Funds Funds
ASSETS
Cash and investments $ 16,454,756 19,219,237 $ 4,651,567 $ $ 40,325,560 Receivables (net of allowance for uncollectible):

Accounts 163,270 - - 163,270
Taxes 993,089 - 84,066 1,077,155
Accrued interest 41,558 - 76,548 118,106
Due from other governments 10,888 - 4,030 14,918
Notes and loans 5,157 - - 5,157
Due from other funds - 140,089 12,304 152,393
Inventories - 106,552 - 106,552
Prepaid costs - 38,426 - 38,426
Restricted assets:

Cash and investments 1,004,869 - - 1,004,869
Cash and investments with fiscal agents - - 41,710 41,710 Total assets $ 21,723,135 $ 16,454,756 $ 4,870,225 $ 43,048,116

LIABILITIES
Accounts payable $ 667,184 598,283 $ 20,701 $ $ 1,286,168 Pass-through payables - 476 - 476
Due to other governments - 135,658 - 135,658
Accrued liabilities - 1,047,546 5,010 1,052,556
Deposits payable - 6,971 - 6,971
Due to other funds - - 152,393 152,393
Unearned revenues - 2,298,690 - 2,298,690
Total liabilities 4,087,624 667,184 178,104 4,932,912

DEFERRED INFLOWS OF RESOURCES
Unavailable revenues - 10,888 26,118 37,006
Total deferred inflows of resources 10,888 - 26,118 37,006

FUND BALANCES (DEFICITS)
Nonspendable - 150,135 - 150,135
Restricted - 1,004,869 4,716,039 5,720,908
Committed - 245,605 - 245,605
Assigned 15,787,572 - - 15,787,572
Unassigned - 16,224,014 (50,036) 16,173,978
Total fund balances (deficits) 17,624,623 15,787,572 4,666,003 38,078,198 Total liabilities, deferred inflows of resources,
and fund balances (deficits) $ 21,723,135 $ 16,454,756 $ 4,870,225 $ 43,048,116 Capital
Projects Fund
Capital
Projects Funds
See accompanying notes to financial statements.
16 PAGE 100 of 589
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position
June 30, 2023
Amounts reported for governmental activities in the Statement of Net Position are different because:

Total fund balances - governmental funds $ 38,078,198
201,424,529
Deferred outflows-pension related 18,417,184
Deferred outflows-OPEB related 2,161,415
Deferred inflows-pension related (3,166,823)
Deferred inflows-OPEB related (2,788,933)
Total deferred outflows and inflows related to postemployment benefits 14,622,843 37,006
2,395,020
Bonds payable (545,000)
Leases and subscriptions payable (1,131,254)
Compensated absences (1,394,495)
Insurance liability (2,123,077)
Accrued interest payable on long-term debt (21,768)
Net pension liability (41,638,587)
Net OPEB liability (5,863,585)
Total long-term liabilities (52,717,766)
Bond discounts 1,575
Total premiums, discounts, and deferred items 1,575
Net position of governmental activities $ 203,841,405
Long-term liabilities that are not due and payable in the current period, and therefore, are not reported in the funds.

Governmental funds report the effect of premiums, discounts, and refundings and similar items when debt is first issued, whereas, these amounts are deferred and amortized in the Statement of Activities.

CITY OF SAN MARINO, CALIFORNIA
Capital assets, net of accumulated depreciation/amortization, used in governmental activities are not financial resources and, therefore, are not reported in the funds.

Differences between expected and actual experiences, assumption changes and net differences between projected and actual earnings, and contributions subsequent to the measurement date for the postretirement benefits (pension and OPEB) are recognized as deferred outflows of resources and deferred inflows of resources on the Statement of Net Position.

Internal service funds provide services to other funds on a cost-reimbursement basis.

The assets, deferred outflows of resources, liabilities, and deferred inflows of resources of the internal service funds are included in governmental activities in the Statement of Activities.

Revenues reported as unavailable revenue in the governmental funds are recognized in the statement of activities.

See accompanying notes to financial statements.
17 PAGE 101 of 589

CITY OF SAN MARINO, CALIFORNIA
Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds
For the Year Ended June 30, 2023
Total Total
Nonmajor Governmental
General Funds Funds

REVENUES
Taxes $ - 28,415,104 $ 629,205 $ $ 29,044,309
Licenses and permits - 948,014 - 948,014
Intergovernmental - 619,834 2,045,150 2,664,984
Charges for services - 2,611,369 - 2,611,369
Use of money and property (32,760) 261,139 356,271 584,650 Fines and forfeitures - 80,164 - 80,164
Contributions 100,000 102,623 - 202,623
Miscellaneous - 44,485 - 44,485
Total revenues 33,082,732 67,240 3,030,626 36,180,598

EXPENDITURES
Current:

General government 4,706,093 120,379 - 4,826,472
Public safety 15,483,327 126,057 137,332 15,746,716
Community development 1,731,989 - - 1,731,989
Parks and recreation 1,834,871 - 34,813 1,869,684
Public works 3,537,163 104,136 - 3,641,299
Library 1,367,120 - - 1,367,120
Capital outlay 6,459,996 123,264 1,911,422 8,494,682
Debt service:

Principal 396,580 495,000 - 891,580
Interest and fiscal charges 25,682 - 57,034 82,716
Total expenditures 29,206,089 6,690,189 2,755,980 38,652,258 Excess (deficiency) of revenues
over (under) expenditures 3,876,643 (6,622,949) 274,646 (2,471,660)

OTHER FINANCING SOURCES (USES)
Transfers in 3,550,000 - 544,712 4,094,712
Transfers out - (4,489,657) (204,728) (4,694,385)
Lease financing - 16,572 - 16,572
Total other financing sources (uses) (4,473,085) 3,550,000 339,984 (583,101) Net change in fund balances (596,442) (3,072,949) 614,630 (3,054,761) Fund balances-beginning 18,860,521 18,221,065 4,051,373 41,132,959 Fund balances (deficit)-ending $ 17,624,623 $ 15,787,572 $ 4,666,003 $ 38,078,198 Capital
Projects Fund
Capital
Projects Funds
See accompanying notes to financial statements.
18 PAGE 102 of 589
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities For the Year Ended June 30, 2023
Amounts reported for governmental activities in the Statement of Activities are different because:

Net change in fund balances - total governmental funds: $ (3,054,761) Capital outlay 8,494,683
Depreciation/amortization expense (2,114,584)
Total adjustment 6,380,099
Earned but unavailable grant revenues (5,009)
Earned but unavailable other revenues (16,288)
Total adjustment (21,297)
Subscription payments 309,872
Lease financing (16,572)
Lease payments 86,708
Amortization of bond premiums and discounts (1,571)
Principal payments 495,000
Total adjustment 873,437
Accrued interest for long-term liabilities. This is the net change in accrued interest for the current period. (17,248)
599,667
Changes in compensated absences 60,160
Changes in insurance liabilities (79,728)
Changes in pension liabilities and related deferred outflows and inflows of resources 4,496,765 Changes in OPEB liabilities and related deferred outflows and inflows of resources 30,471 Total adjustment 4,507,668
Change in net position of governmental activities 9,267,565 $ Internal service funds provide services to other funds on a cost-reimbursement basis.

The net revenue of certain activities of internal service funds is reported with governmental activities.

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.

CITY OF SAN MARINO, CALIFORNIA
Governmental funds report capital outlays are expenditures. However, in the Statement of Activities, the cost of these assets is allocated over their estimated useful lives and reported as depreciation/amortization expense. This is the amount by which capital outlays exceeded depreciation/amortization expense in the current period.

Revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds.

Bond and other debt proceeds provide current financial resources to governmental funds, but issuing debt increases long-term liabilities in the Statement of Net Position.

Repayment of bond and other debt principal is an expenditure in the governmental funds, but repayment reduces long-term liabilities in the Statement of Net Position. Also, governmental funds report the effect of premiums, discounts, and similar items when debt is first issued, whereas these amounts are deferred and amortized in the Statement of Activities.

See accompanying notes to financial statements.
19 PAGE 103 of 589

CITY OF SAN MARINO, CALIFORNIA
Statement of Net Position
Proprietary Fund
June 30, 2023
Governmental
Activities -
Internal Service
Fund
ASSETS
Current assets:

Cash and investments $ 1,489
Total current assets 1,489
Noncurrent:

Capital assets, net 2,434,012
Total noncurrent assets 2,434,012
Total assets 2,435,501

LIABILITIES
Current liabilities:

Accounts payable 40,481
Total current liabilities 40,481
Total liabilities 40,481

NET POSITION
Invested in capital assets 2,434,012
Unrestricted (38,992)
Total net position $ 2,395,020
Capitalized
Equipment
See accompanying notes to financial statements.
20 PAGE 104 of 589

CITY OF SAN MARINO, CALIFORNIA
Statement of Revenues, Expenses and
Changes in Net Position
Proprietary Fund
For the Year Ended June 30, 2023
Governmental
Activities -
Internal Service
Fund

OPERATING REVENUES
Interdepartmental charges for services $ 547,760
Total operating revenues 547,760

OPERATING EXPENSES
Depreciation/amortization 547,760
Total operating expenses 547,760
Operating income (loss) -

NONOPERATING REVENUES (EXPENSES)
Interest revenue (6)
Total nonoperating revenues (expenses) (6)
Income (loss) before capital contributions and transfers (6) Transfers in 599,673
Change in net position 599,667
Net position-beginning 1,795,353
Net position-ending $ 2,395,020
Capitalized
Equipment
See accompanying notes to financial statements.
21 PAGE 105 of 589

CITY OF SAN MARINO
Statement of Cash Flows
Proprietary Fund
For the Year Ended June 30, 2023
Governmental
Activities -
Internal Service
Fund

CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers $ 595,825
Payments to suppliers and service providers (262,325)
Net cash provided by (used for)
operating activities 333,500

CASH FLOWS FROM NONCAPITAL

FINANCING ACTIVITIES
Transfers from other funds 599,673
Net cash provided by (used for)
noncapital financing activities 599,673

CASH FLOWS FROM CAPITAL AND RELATED

FINANCING ACTIVITIES
Acquisition and construction of capital assets (933,174) Net cash provided by (used for)
capital and related financing activities (933,174)

CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments 224
Net cash provided by (used for)
investing activities 224
Net increase (decrease) in
cash and cash equivalents 223
Cash and cash equivalents-beginning 1,266
Cash and cash equivalents-ending $ 1,489

RECONCILIATION OF CASH AND CASH EQUIVALENTS

TO THE STATEMENT OF NET POSITION
Cash and investments $ 1,489
Total cash and cash equivalents $ 1,489

RECONCILIATION OF OPERATING INCOME (LOSS)

TO NET CASH PROVIDED BY (USED FOR)

OPERATING ACTIVITIES
Operating income (loss) $ -
Adjustments to reconcile operating income (loss) to
net cash provided by (used for) operating activities:

Depreciation/amortization expense 547,760
(Increase) decrease in accounts receivable 48,065
Increase (decrease) in accounts payable (262,325)
Total adjustments 333,500
Net cash provided by (used for)
operating activities $ 333,500
Capitalized
Equipment
See accompanying notes to financial statements.
22 PAGE 106 of 589

CITY OF SAN MARINO, CALIFORNIA
Notes to the Financial Statements
June 30, 2023
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The basic financial statements of the City of San Marino (the “City”) have been prepared in conformity with Generally Accepted Accounting Principles (GAAP) applicable to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. More significant accounting policies of the City are described below.

A. Description of Entity
The City was incorporated on April 13, 1913, under the laws of the State of California and enjoys all the rights and privileges applicable to a General Law City. The City operates under a Council-Manager form of government and provides basic local government services including public safety (police, fire and emergency operations), maintenance and construction of public improvements, recreation, planning, zoning, library and general administration.

The accompanying financial statements contain information for the total reporting entity, which includes the City (the primary government). There are no component units as defined by GAAP.

B. Government-Wide and Fund Financial Statements
The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the nonfiduciary activities of the primary government and its component units. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support.

The statement of activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include: 1) charges to customers or applicants who purchase, use or directly benefit from goods, services or privileges provided by a given function or segment, and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues.

Separate financial statements are provided for governmental funds. Major individual governmental funds are reported as separate columns in the fund financial statements.

C. Measurement Focus, Basis of Accounting and Financial Statement Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied.

Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.

Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due.
23 PAGE 107 of 589

CITY OF SAN MARINO, CALIFORNIA
Notes to the Financial Statements
June 30, 2023
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Property taxes, franchise taxes, licenses and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Only the portion of special assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period. All other revenue items are considered to be measurable and available only when cash is received by the government.

The City reports the following major governmental funds:
 The General Fund is used to account for all financial resources of the general government, except those required to be accounted for in another fund.
 The Capital Projects Fund is used to track the investment of City funds for capital projects that have a cost greater than $5,000 per unit and a useful life of two or more years.

Additionally, the City reports the following fund types:
 Special Revenue Funds are used to account for financial resources which are restricted for specific purposes.  The Debt Service Fund is used to account for the accumulation of resources for and the payment of general long-term debt principal and interest.
 The Internal Service Fund is used to account for equipment purchases and capital assets of the City and the replacement of equipment to other departments of the City.

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

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

Investments for the City are reported at fair value, which is the determined using observable inputs at June 30, 2023. The City's policy is generally to hold investments until maturity or until market values equal or exceed cost.

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

All trade and property tax receivables are shown net of an allowance for uncollectibles. 24 PAGE 108 of 589

CITY OF SAN MARINO, CALIFORNIA
Notes to the Financial Statements
June 30, 2023
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

3. Functional Classifications
Expenditures of the Governmental Funds are classified by function. Functional classifications are defined as follows:
 General Government includes legislative activities that have a primary objective of providing legal and policy guidelines for the City. Also included in this classification are those activities that provide management or support services across more than one functional area.
 Public Safety includes those activities that involve the protection of people and property.  Community Development includes those activities that involve the enhancing of the general quality of life.  Recreation includes activities for children, adults and senior citizens.  Parks and Public Works include those activities that involve the maintenance and improvement of City streets, roads and park department development and maintenance.
 Library includes those activities related to the provision of library services to the community.  Interest on long-term debt includes required interest payments on outstanding City debt.

4. Inventories and Prepaid Items
All inventories are valued at cost using the first-in/first-out (FIFO) method. Inventories in the General Fund consist of gasoline and garage items. Inventory costs are recorded as expenditures when used.

The General Fund inventory is accounted for on the consumption method and is equally offset by a reservation of fund balance in the fund-level statements, which indicates that it does not constitute "available spendable resources."
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 fund balances in the governmental fund types have been reserved for amounts equal to the prepaid items in the fund-level statements, since these amounts are not available for appropriation.

5. Capital Assets
Capital assets, which include property, plant, equipment and infrastructure assets (e.g., roads, bridges, sidewalks and similar items), are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Capital assets are defined by the City as assets with an initial, individual cost of more than $5,000 (amount not rounded) and an estimated useful life in excess of two years. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets, donated works of art and similar items, and assets received in a service concession arrangement are recorded at acquisition value at the time of acquisition.

In accordance with GASB Statement No. 34, the City has reported general infrastructure assets acquired in the current and prior fiscal years.

The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets’ lives are not capitalized.

Major outlays for capital assets and improvements are capitalized as projects are constructed. 25 PAGE 109 of 589

CITY OF SAN MARINO, CALIFORNIA
Notes to the Financial Statements
June 30, 2023
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Property, plant and equipment of the primary government is depreciated using the straight-line method over the following estimated useful lives:

Assets Years
Structures and Improvements 7-50
Furniture and Equipment 3-20
Infrastructure 10-25

6. Leases
Lease assets are reported in the applicable governmental activities’ column in the governmental-wide financial statements. These assets are defined by the City as assets with an initial, individual cost of more than $5,000 (amount not rounded) and an estimated useful life in excess of two years. Such assets are recorded at the present value of the lease liability including expenses to place the asset into service.

At the commencement of a lease, the City initially measures the lease liability at the present value of payments expected to be made during the lease term. Subsequently, the lease liability is reduced by the principal portion of lease payments made. The lease asset is initially measured as the initial amount of the lease liability, adjusted for lease payments made at or before the lease commencement date, plus certain initial direct costs. Subsequently, the lease asset is amortized on a straight-line basis over its useful life. Key estimates and judgments related to leases include how the City determines (1) the discount rate it uses to discount the expected lease payments to present value, (2) lease term, and (3) lease payments.
 The City uses the interest rate charged by the lessor as the discount rate. When the interest rate charged by the lessor is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate for leases.
 The lease term includes the noncancellable period of the lease. Lease payments included in the measurement of the lease liability are composed of fixed payments and the purchase option price that the City is reasonably certain to exercise.

The City monitors changes in circumstances that would require a remeasurement of its lease and will remeasure the lease asset and liability if certain changes occur that are expected to significantly affect the amount of the lease liability.

Lease assets are reported with other capital assets and lease liabilities are reported with long-term debt on the statement of net position.

7. Subscription-Based Information Technology Arrangements The City is a subscriber for noncancellable subscriptions of information technology services. The City recognizes a subscription liability and an intangible right-to-use subscription asset (subscription asset) in the government-wide financial statements. The City recognizes subscription liabilities with an initial, individual value of $5,000 or more.

At the commencement of a subscription, the City initially measures the subscription liability at the present value of payments expected to be made during the subscription term. Subsequently, the subscription liability is reduced by the principal portion of subscription payments made. The subscription asset is initially measured as the initial amount of the subscription liability, adjusted for subscription payments made at or before the subscription commencement date, plus certain initial direct costs. Subsequently, the subscription asset is amortized on a straight-line basis over its useful life. Key estimates and judgments related to subscriptions include how the City determines (1) the discount rate it uses to discount the expected subscription payments to present value, (2) lease term, and (3) subscription payments.
26 PAGE 110 of 589

CITY OF SAN MARINO, CALIFORNIA
Notes to the Financial Statements
June 30, 2023
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)  The City uses the interest rate charged by the vendor as the discount rate. When the interest rate charged by the vendor is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate for subscriptions.
 The subscription term includes the noncancellable period of the subscription. Subscription payments included in the measurement of the subscription liability are composed of fixed payments that the City is reasonably certain to exercise.

The City monitors changes in circumstances that would require a remeasurement of its subscriptions and will remeasure the subscription asset and liability if certain changes occur that are expected to significantly affect the amount of the subscription liability.

Subscription assets are reported with other capital assets and subscription liabilities are reported with long-term debt on the statement of net position.

8. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position and governmental fund balance sheet will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net assets that applies to future periods. The City only has two items that qualify for reporting in this category. The deferred outflows relating to the net pension obligation and to the total other post-employment benefit (OPEB) obligation reported in the government-wide statement of net position. These outflows are the results of contributions made after the measurement period, which are recognized in the following year, and of adjustments due to difference in proportions, changes in assumptions, and differences between expected and actual experiences. These amounts are deferred and amortized over the expected average remaining service lifetime.

In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net assets that applies to future periods. The City has three items reported in this category. One arises only under a modified accrual basis of accounting. Accordingly, the item, unavailable revenues, is reported only in the governmental fund balance sheet. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. The second and third items are the deferred inflows relating to the net pension obligation and to the net OPEB obligation reported in the government-wide statement of net position. These inflows are the result of changes in employees’ proportion differences in proportionate share of contributions, changes in assumptions, differences between projected and actual experiences, adjustments due to differences in proportions, and the net difference between projected and actual earnings on plan investments. These items, with the exception of the difference between projected and actual earnings on plan investments, are deferred and recognized over the remaining service life. The difference between projected and actual earnings on plan investments is amortized over five years.

9. Pension Plans
For purposes of measuring the net pension liability, deferred outflows and inflows of resources related to pensions, and pension expense, information about the fiduciary net position and additions to/deductions from the fiduciary net position have been determined on the same basis as they are reported by the California Public Employees’ Retirement System (“CalPERS”) Financial Office. 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. CalPERS’ audited financial statements are publicly available reports that can be obtained at CalPERS’ website under Forms and Publications. GAAP requires that the reported results must pertain to liability and asset information within certain defined timeframes. 27 PAGE 111 of 589

CITY OF SAN MARINO, CALIFORNIA
Notes to the Financial Statements
June 30, 2023
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) For this report, the following timeframes are used.

Valuation Date (VD): June 30, 2021
Measurement Date (MD): June 30, 2022
Measurement Period (MP): July 1, 2021 to June 30, 2022

10. Other Postemployment Benefits (OPEB)
For purposes of measuring the net OPEB liability, deferred outflows and inflows of resources related to OPEB, and OPEB expense, and information about the City’s OPEB plan have been determined by an independent actuary.

For this purpose, benefit payments are recognized when currently due and payable in accordance with the benefit terms.

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

Valuation Date (VD): June 30, 2021
Measurement Date (MD): June 30, 2022
Measurement Period (MP): July 1, 2021 to June 30, 2022

11. Compensated Absences
It is the government's policy to permit employees to accumulate earned but unused vacation and sick pay benefits.

Vacation time accrued is transferable from one year to the next with the exception that no more than 180 through 624 hours of vacation time may be carried over to the next year, depending on the job classification. An employee accruing the maximum number of hours for vacation time shall be compensated at the employee’s regular hourly rate on a monthly basis for the number of vacation hours the employee would have accrued, until the number of accrued hours drops below the maximum number of accruable hours.

Employees are entitled to accrue sick leave, depending on job classification, from 240 up to 340 hours. Upon reaching the maximum accrual allowed, the employee shall cease to accrue sick leave time until such time as the total accrued hours are less than the maximum permitted. Employees have no vested rights in the accrued sick leave time.

It is the practice of the City to record the total compensated absences liability at the end of the year as a current liability due to historical trends of employees using more leave throughout the subsequent fiscal year than is accrued for at the end of the year. Therefore estimating a portion of compensated absences to be current at the end of the year would not be an accurate representation of the actual amount of compensated absences paid out in the year subsequent to current fiscal year.

12. Long-Term Obligations
In the government-wide financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities in the statement of net position. 28 PAGE 112 of 589

CITY OF SAN MARINO, CALIFORNIA
Notes to the Financial Statements
June 30, 2023
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

13. Fund Equity
In the fund financial statements, government funds report the following fund balance classification:

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

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

Committed includes amounts that can only be used for specific purposes pursuant to constraints imposed by formal action of the government’s highest authority, the City Council. The formal action that is required to be taken to establish, modify, or rescind a fund balance commitment is through resolution. The City reports $245,605 in committed balance as of June 30, 2023.

Assigned includes amounts that are constrained by the government’s intent to be used for specific purposes but are neither restricted nor committed. The Finance Director is authorized to assign amounts to a specific purpose, which was established by the governing body in resolution. The City reports $15,787,572 assigned balance as of June 30, 2023.

Unassigned include the residual amounts that have not been restricted, committed, or assigned to specific purposes.

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

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

15. Fund Balance Flow Assumptions
Sometimes the government will fund outlays for a particular purpose from both restricted and unrestricted resources (the total of committed, assigned, and unassigned fund balance). In order to calculate the amounts to report as restricted, committed, assigned, and unassigned fund balance in the governmental fund financial statements a flow assumption must be made about the order in which the resources are considered to be applied. It is the government’s policy to consider restricted fund balance to have been depleted before using any of the components of unrestricted fund balance. Further, when the components of unrestricted fund balance can be used for the same purpose, committed fund balance is depleted first, followed by assigned fund balance. Unassigned fund balance is applied last.
29 PAGE 113 of 589

CITY OF SAN MARINO, CALIFORNIA
Notes to the Financial Statements
June 30, 2023
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

16. Property Tax Revenue
Property tax revenue is recognized on the basis of National Committee on Governmental Accounting Interpretation No. 3, (adopted by GASB) that is, in the fiscal year for which the taxes have been levied providing they become available. Available means then due, or past due and receivable within the current period and collected within the current period or expected to be collected soon enough thereafter to be used to pay liabilities of the current period.

The County of Los Angeles collects property taxes for the City. Tax liens attach annually as of 12:01 A.M. on the first day in January preceding the fiscal year for which the taxes are levied. The tax levy is made July 1 and covers the fiscal period July 1 to June 30. All secured personal property taxes and one-half of the taxes on real property are due November 1; the second installment is due February 1. All taxes are delinquent, if unpaid, on December 10 and April 10, respectively. Unsecured personal property taxes become due on the first of March each year and are delinquent, if unpaid, on August 31.

17. New GASB Pronouncements Implemented during the Fiscal Year The following Government Accounting Standards Board (GASB) pronouncements were effective for and/or early implemented for the fiscal year ended June 30, 2023:
a. GASB Statement No. 91, Conduit Debt Obligations
The requirements of this Statement will improve financial reporting by eliminating the existing option for issuers to report conduit debt obligations as their own liabilities, thereby ending significant diversity in practice. The clarified definition will resolve stakeholders’ uncertainty as to whether a given financing is, in fact, a conduit debt obligation.

Requiring issuers to recognize liabilities associated with additional commitments extended by issuers and to recognize assets and deferred inflows of resources related to certain arrangements associated with conduit debt obligations also will eliminate diversity, thereby improving comparability in reporting by issuers. Revised disclosure requirements will provide financial statement users with better information regarding the commitments issuers extend and the likelihood that they will fulfill those commitments. That information will inform users of the potential impact of such commitments on the financial resources of issuers and help users assess issuers’ roles in conduit debt obligations.
b. GASB Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements
The requirements of this Statement will improve financial reporting by establishing the definitions of PPPs and APAs and providing uniform guidance on accounting and financial reporting for transactions that meet those definitions.

That uniform guidance will provide more relevant and reliable information for financial statement users and create greater consistency in practice. This Statement will enhance the decision usefulness of a government’s financial statements by requiring governments to report assets and liabilities related to PPPs consistently and disclose important information about PPP transactions. The required disclosures will allow users to understand the scale and important aspects of a government’s PPPs and evaluate a government’s future obligations and assets resulting from PPPs.
c. GASB Statement No. 96, Subscription-Based Information Technology Arrangements The requirements of this Statement will improve financial reporting by establishing a definition for SBITAs and providing uniform guidance for accounting and financial reporting for transactions that meet that definition. That definition and uniform guidance will result in greater consistency in practice. Establishing the capitalization criteria for implementation costs also will reduce diversity and improve comparability in financial reporting by governments.

This Statement also will enhance the relevance and reliability of a government’s financial statements by requiring a government to report a subscription asset and subscription liability for a SBITA and to disclose essential information about the arrangement. The disclosures will allow users to understand the scale and important aspects of a government’s SBITA activities and evaluate a government’s obligations and assets resulting from SBITAs. 30 PAGE 114 of 589

CITY OF SAN MARINO, CALIFORNIA
Notes to the Financial Statements
June 30, 2023
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) d. GASB Statement No. 100, Accounting Changes and Error Corrections The requirements of this Statement will improve the clarity of the accounting and financial reporting requirements for accounting changes and error corrections, which will result in greater consistency in application in practice. In turn, more understandable, reliable, relevant, consistent, and comparable information will be provided to financial statement users for making decisions or assessing accountability. In addition, the display and note disclosure requirements will result in more consistent, decision useful, understandable, and comprehensive information for users about accounting changes and error corrections.
e. GASB Statement No. 101, Compensated Absences
This Statement requires that liabilities for compensated absences be recognized for (1) leave that has not been used and (2) leave that has been used but not yet paid in cash or settled through noncash means. It also requires that a liability for certain types of compensated absences—including parental leave, military leave, and jury duty leave—not be recognized until the leave commences. This Statement also requires that a liability for specific types of compensated absences not be recognized until the leave is used. Further, this Statement establishes guidance for measuring a liability for leave that has not been used, generally using an employee’s pay rate as of the date of the financial statements.

NOTE 2: STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY
A. Compliance with Budgetary Limitations
The County Park Bond and Homeland Security Grant special revenue funds did not adopt a budget for the year ended June 30, 2023.

B. Deficit Fund Balances
The following governmental fund had a deficit fund balance as of June 30, 2023:

The deficit fund balances will be resolved with future gas tax revenue in the State Gas Tax fund and with future grant revenue in the other funds.

NOTE 3: CASH AND INVESTMENTS
As of June 30, 2023, the City reported $41,373,628 in cash and investments. The City follows the practice of pooling cash and investments of all funds, except for funds required to be held by fiscal agents under provisions of bond indentures. Interest income earned on pooled cash and investments is allocated quarterly to the various funds based on quarterly cash and investment balances. Interest income from cash and investments with fiscal agents is credited directly to the related fund.

A. Deposits
As of June 30, 2023, the carrying amount of the City’s deposits was $3,217,445 and the bank balance was $3,334,516. The $117,071 difference represents outstanding checks and other reconciling items.

The California Government Code requires California banks and savings and loan associations to secure City’s deposits by pledging securities as collateral. This Code states that collateral pledged in this manner shall have the effect of perfecting a security interest in such collateral superior to those of a general creditor. Thus, collateral for cash deposits is considered to be held in the City’s name.

State Gas Tax $ 49,547
Capital Park Bond 9
STPL 480
31 PAGE 115 of 589

CITY OF SAN MARINO, CALIFORNIA
Notes to the Financial Statements
June 30, 2023
NOTE 3: CASH AND INVESTMENTS (CONTINUED)
The market value of pledged securities must equal at least 110% of the City’s cash deposits. California law also allows institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the City’s total cash deposits. The City invests in a money market account with their bank that is collateralized with a letter of credit with a value of 105% of the City’s total cash deposit which is in accordance with the California Government Code. The City may waive collateral requirements for cash deposits, that are fully insured up to $250,000 by the Federal Deposit Insurance Corporation. The City, however, has not waived the collateralization requirements.

B. Investments
Under provision of the City’s investment policy and in accordance with the California Government Code, the following investments are authorized:
 United States Treasury Bills, Bonds and Notes
 Federal Agency Securities
 State of California Local Agency Investment Fund (LAIF) and other local government investment pools  Money Market Mutual Funds in compliance with California Government Code Section 53601(L)  Certificates of Deposit placed through a private placement service in compliance with California Government Code Sections 53601.8 and 53635.8 C. Investments Authorized by Debt Agreements
The above investments do not address investment of debt proceeds held by a bond trustee. Investments of debt proceeds held by a bond trustee are governed by provisions of the debt agreements rather than the general provisions of the California Government Code or the City’s investment policy.

D. Investments in State Investment Pool
The City is a voluntary participant in the State of California Local Agency Investment Fund (LAIF) that 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 the pool is reported in the accompanying financial statements at amounts based on 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 accounting records maintained by LAIF, which are recorded on an amortized cost basis. LAIF is not registered with the Securities and Exchange Commission and is not rated. Deposits and withdrawals in LAIF are made on the basis of $1 and not fair value. Accordingly, the City’s investment in this pool is measured on uncategorized inputs not defined as Level 1, 2, or 3.

E. Fair Value Hierarchy
The City categorizes its fair value measurements within the fair value hierarchy established by GAAP. 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. As of June 30, 2023, all the City’s investments, with the exception of LAIF, are valued using Level 2 inputs.

F. 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 deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that in the event of the failure of the counterparty to a transaction, a government will not be able to recover the value of investment or collateral securities that are in the possession of an outside party. 32 PAGE 116 of 589

CITY OF SAN MARINO, CALIFORNIA
Notes to the Financial Statements
June 30, 2023
NOTE 3: CASH AND INVESTMENTS (CONTINUED)
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 as follows. 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 City. California law also allows financial institutions to secure City deposits by pledging a letter of credit having a value of 105% of the City’s deposits for the money market account. The City’s investment policy requires delivery versus payment procedures and that all securities be held in third-party safekeeping by a custodial financial institution.

As of June 30, 2023, all of the City’s deposits with financial institutions in excess of Federal depository insurance limits were collateralized by an interest in an undivided collateral pool as required by State law. In addition, all investments were held by a third-party safekeeping institution.

G. Concentration of Credit Risk
The City’s investment policy contains a limitation on the maximum percentage of total portfolio investments in certain types of investments. The City limits total portfolio investments in mortgage backed securities and negotiable certificates of deposit to 20% and 30%, respectively. Total investment in money market mutual funds shall not exceed 20% of the City’s total portfolio. The City was in compliance with these limitations at June 30, 2023.

GASB Statement No. 40 requires that the City disclose investments in any one issuer that represents 5% or more of the total investments. All issuers, with the exception of the Local Agency Investment Fund (which is exempt from this restriction), fell below the 5% threshold of total investments held.

H. Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization.

Presented below is the minimum rating required by (where applicable) the California Government Code or the City’s investment policy, and the actual rating as of the fiscal year end for each investment type:

Total as of Minimum
Investment Type June 30, 2023 Legal Rating Exempt Not Rated Local Agency Investment Fund 14,489,165 $ N/A - $ 14,489,165 $ Certificates of Depoist 9,330,147 N/A - 9,330,147
Federal Home Loan Bank 1,658,441 N/A 1,658,441 -
Federal Home Loan Mort. Corp 1,957,625 N/A 1,957,625 -
Federal Farm Credit Bank 2,575,248 N/A 2,575,248 -
Municipal Securities 469,320 N/A - 469,320
Treasury Bill 493,013 N/A - 493,013
Money Market Deposit Account 6,136,645 N/A - 6,136,645
Held by Bond Trustee
Money Market Mutual Funds 41,710 N/A - 41,710
CEPPT Investments Trust 1,004,869 N/A - 1,004,869
$ 6,191,314 38,156,183 $ 31,964,869 $
33 PAGE 117 of 589

CITY OF SAN MARINO, CALIFORNIA
Notes to the Financial Statements
June 30, 2023
NOTE 3: CASH AND INVESTMENTS (CONTINUED)
I. Interest Rate Risk
The City’s investment policy limits investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates. The City’s investment policy states that all investments shall mature in five years or less. The City has elected to use the segmented time distribution method of disclosure for its interest rate risk.

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

Less Than
Investment Type Total 1 Year 1 - 3 Years 3 - 5 Years
Local Agency Investment Fund 14,489,165 $ 14,489,165 $ - $ - $ Certificates of Depoist 9,330,147 4,118,510 4,119,042 1,092,595 Federal Home Loan Bank 1,658,441 497,567 1,160,874 -
Federal Home Loan Mort. Corp 1,957,625 493,539 1,464,086 - Federal Farm Credit Bank 2,575,248 - 1,634,559 940,689
Municipal Securities 469,320 - 469,320 -
Treasury Bill 493,013 493,013 - -
Money Market Deposit Account 6,136,645 6,136,645 - -
Held by Bond Trustee
Money Market Mutual Funds 41,710 41,710 - -
CEPPT Investments Trust 1,004,869 1,004,869 - -
Total $ 38,156,183 $ 27,275,018 $ 8,847,881 $ 2,033,284 Remaining Maturity (in Months)
34 PAGE 118 of 589

CITY OF SAN MARINO, CALIFORNIA
Notes to the Financial Statements
June 30, 2023
NOTE 4: CAPITAL ASSETS
Capital asset activity for the year ended June 30, 2023, was as follows:

Depreciation expense was charged to functions/programs of the primary government as follows:

Balance Balance
July 1, 2022 Adjustments* Additions Deletions June 30, 2023 Governmental activities:

Capital assets,
not being depreciated/amortized
Land $ 149,584,512 $ - $ - $ 149,584,512 - $
Construction-in-progress 776,056 5,285,237 - 5,991,096 - Total capital assets,
not being depreciated/amortized 150,360,568 5,285,237 - 155,575,608 - Capital assets,
being depreciated/amortized
Structures and improvements 19,124,864 - 28,450 19,223,511 - Furniture and equipment 6,907,983 933,174 - (295,698) 7,545,459 Infrastructure 79,428,182 3,164,424 - 82,592,606
Lease assets 582,868 (40,712) 16,572 (28,965) 529,763
Subscription assets 1,217,079 - - 1,217,079 -
Total capital assets, 106,043,897 1,176,367 4,142,620 (324,663) 111,108,418 Less accumulated
depreciation/amortization
Structures and Improvement (5,828,184) (400,449) - (6,228,633) - Furniture and Equipment (4,859,385) (547,760) - 295,698 (5,111,447) Infrastructure (49,551,317) (1,338,675) - (50,889,992) - Lease assets (248,918) (27,142) (67,798) 28,965 (260,609) Subscription assets - 27,142 (307,662) (334,804) -
Total accumulated (60,487,804) (2,662,344) - 324,663 (62,825,485) Total capital assets,
being depreciated/amortized, net 45,556,093 1,176,367 1,480,276 48,282,933 - Total governmental activities capital
assets $ 195,916,661 $ 1,176,367 $ 6,765,513 $ 203,858,541 - $ * Adjustments are the result of GASB Statement No 96 implementation.

General government $ 224,960
Public safety 112,859
Community development 52,771
Parks and public works 1,374,521
Library 349,473
Internal service funds 547,760
Total depreciation/amortization expense 2,662,344 $
35 PAGE 119 of 589

CITY OF SAN MARINO, CALIFORNIA
Notes to the Financial Statements
June 30, 2023
NOTE 5: INTERFUND RECEIVABLE, PAYABLE AND TRANSFERS
The composition of interfund balances as of June 30, 2023, was as follows:

A. Due To/From Other Funds
The General Fund made short term loans to various nonmajor funds in the amount of $140,089 to cover various temporary cash deficits during the year. Nonmajor funds are owed $12,304 within nonmajor funds for miscellaneous reimbursements.

B. Interfund Transfers
Transfers into the Capital Projects Fund from the General Fund are to fund various capital projects and for capital equipment purchases in the Internal Service Fund. The transfers out of the General Fund into the nonmajor funds are to fund debt service payments.

NOTE 6: NONCURRENT LIABILITIES
Capital Nonmajor Internal
Transfers out Projects Fund Funds Service Fund Total
General Fund 3,550,000 $ $ 339,984 $ 599,673 $ 4,489,657 Nonmajor Funds - 204,728 - 204,728
$ 3,550,000 $ 544,712 $ 599,673 $ 4,694,385
Transfers In
Amount
Balance Balance Due Within
July 1, 2022 Adjustments * Additions Deletions June 30, 2023 One Year Governmental activities
Bonds, notes, leases, SBITA, claims,
and compensated absences
Bonds payable 1,040,000 $ - $ - $ ( $ 545,000 495,000) $ 545,000 $ Discount (3,146) - - (1, (1, 571) - 575)
Leases 334,895 (18, 16,572 593) (73, 089) 69,565 259,785 SBITAs - 1, - 194,960 ( 871,469 323,491) 290,028
Compenstated absences 1,454,656 - 1,243,084 (1,303,245) 1,394,495 1,394,495 Claims payable (Note 10) 2,043,349 - 994,781 ( 2,123,077 915,053) 203,392 Total bonds, notes, leases, SBITA,
claims and compensated absences 4,869,754 $ 1,176,367 $ 2,254,437 $ (3,111,449) $ 5,192,251 $ 2,502,480 $ * Adjustments are the result of GASB Statement No. 96 implementation. 36 PAGE 120 of 589

CITY OF SAN MARINO, CALIFORNIA
Notes to the Financial Statements
June 30, 2023
NOTE 6: NONCURRENT LIABILITIES (CONTINUED)
A. Bonds Payable
The following is a summary of changes in long-term debt of the City for the year ended June 30, 2023:

Debt service payments for the pension obligations bonds are made from the general fund transfers to the debt service fund.

Taxable Pension Obligation Bonds, 2007 Series A-1
On April 1, 2007, the City pursuant to an Agreement with the California Statewide Communities Development Authority, issued $7,095,000 in Taxable Pension Obligation Bonds, 2007 Series A-1, for the purpose of funding its unfunded accrued actuarial liability of the California Public Employee’s Retirement System. The aggregate total amount of the bonds issued was $87,475,699 of which the City of San Marino issued $7,095,000. The bonds mature annually each June 1, commencing June 1, 2008 through June 1, 2024, in amounts ranging from $130,000 to $545,000. The bonds bear interest at 5.210% and are subject to optional redemption prior to their maturity at the option of the City, in whole or in part on any date, at a redemption price equal to the greater of: (1) 100% of the principal amount of the Redeemable Term Bonds to be redeemed; or (2) the sum of the present values of the remaining scheduled payments of principal and interest on the Redeemable Term Bonds to be redeemed discounted to the date of redemption on a semiannual basis. As of June 30, 2023, the outstanding balance was $545,000.

The annual requirements to amortize the 2007 Taxable Pension Obligation Bonds outstanding at June 30, 2023, were as follows:

Amount
Balance Balance Due Within
July 1, 2022 Additions Deletions June 30, 2023 One Year Governmental activities
Bonds payable
Pension Obligation Bonds, 2007 1,040,000 $ - $ 495,000 $ $ 545,000 $ 545,000 Discount (3,146) (1,571) - (1,575) -
Total bonds payable $ 1,036,854 $ 493,429 - $ $ 543,425 $ 545,000 Year Ending
June 30 Principal Interest
2024 545,000 $ 29,888 $
Totals 545,000 $ 29,888 $
37 PAGE 121 of 589

CITY OF SAN MARINO, CALIFORNIA
Notes to the Financial Statements
June 30, 2023
NOTE 6: NONCURRENT LIABILITIES (CONTINUED)
B. Leases
Lease asset activity for the year ended June 30, 2023, was as follows:

Amortization expense was charged to functions/programs of the primary government as follows:

Lease Liabilities
The following is a summary of changes in lease liabilities of the City for the year ended June 30, 2023:

Balance Balance
July 1, 2022 Adjustments * Additions Deletions June 30, 2023 Lease Assets
Postage Machine $ 8,070 $ - $ 3,902 $ (8,070) $ 3,902
Copiers 114,583 - 12,670 (20,895) 106,358
Facilities 419,503 - - 419,503 -
Software Lease 40,712 (40,712) - - -
Total Leased Assets, Being Amortized 582,868 (40,712) 16,572 (28,965) 529,763 Less accumulated amortization
Postage Machine (6,590) - (1,545) 8,070 (65)
Copiers (68,972) (17,514) - 20,895 (65,591)
Facilities (146,214) (48,739) - (194,953) -
Software Lease (27,142) 27,142 - - -
Total Accumulated Amortization (248,918) 27,142 (67,798) 28,965 (260,609) Total leased assets, net $ 333,950 $ (13,570) $ (51,226) $ 269,154 - $ * Adjustments are the result of GASB Statement No 96 implementation.

General Government $ 32,844
Public Safety 1,235
Parks and Public Works 33,719
Total Governmental Activities: 67,798 $
Balance Balance Due Within
July 1, 2022 Adjustments * Additions Deletions June 30, 2023 One Year Leased Liabilities:

Postage Machine $ 769 $ - $ 3,901 $ (768) $ 3,902 $ 865 Copiers 39,805 - 12,671 (23,567) 28,909 18,870
Facilities 275,728 - (48,754) - 226,974 49,830
Software Lease 18,593 (18,593) - - - -
Total $ 334,895 $ (18,593) $ 16,572 $ (73,089) $ 259,785 $ 69,565 * Adjustments are the result of GASB Statement No 96 implementation. 38 PAGE 122 of 589

CITY OF SAN MARINO, CALIFORNIA
Notes to the Financial Statements
June 30, 2023
NOTE 6: NONCURRENT LIABILITIES (CONTINUED)

1. Postage Machine
In May 2018, the City entered into a noninterest bearing lease agreement with Great America Financial Services to obtain a postage machine. The lease term is five years with base monthly payments of $149 per month beginning on May 14, 2018. As of June 30, 2023, the lease liability outstanding is $0, while the net lease asset value is $0, which includes accumulated amortization of $0.

In May 2023, the City entered into a noninterest bearing lease agreement with Pitney Bowes to obtain a postage machine. The lease term is five years with base monthly payments of $72 per month beginning on May 26, 2023.

As of June 30, 2023, the lease liability outstanding is $3,902, while the net leased asset value is $3,837, which includes accumulated amortization of $65.

2. Copiers
Between September 2016 and February 2022, the City entered into eleven noninterest bearing lease agreements with CopyFree to obtain photocopiers and a printer for different City departments. The lease term for each lease is five years with base monthly payments ranging between $114 and $398 per month. As of June 30, 2023, the total outstanding lease liability for these copiers is $28,909, while the total net leased asset value is $40,767, which includes accumulated amortization of $65,591.

3. Facilities
The City has entered into two noninterest bearing facility use lease agreements with the San Marino Unified School District for use of a swimming pool and parking lot. The lease term for the swimming pool is five years with annual payments of $12,875 per year beginning July 1, 2019. The rent amount will be adjusted annually by the lesser of the Los Angeles Statistical Area Consumer Price Index or 3%. The lease term for the parking lot is ten years beginning with a lump sum payment of $61,600 in which $30,800 represents back-rent for the City’s use of the parking spaces. The remaining $30,800 is the initial annual rent payment beginning October 13, 2019. For the parking lot lease, the rent amount will increase by 2% from the preceding lease year. In addition to the annual rent, an additional annual payment of $2,000 will be paid to anticipate slurry seal repairs and needs. As of June 30, 2023, the total lease liability outstanding for these facilities is $226,974, while the net leased asset value is $224,550 which includes accumulated amortization of $194,953.

4. Future Lease Payments
The future lease payments for all leases discussed above are expected to be paid as follows:

Year Ending
June 30 Payments
2024 75,940 $
2025 47,417
2026 45,532
2027 41,077
2028 38,532
2029-2033 38,809
Total payments 287,307
Interest 27,522
Totals 259,785 $
39 PAGE 123 of 589

CITY OF SAN MARINO, CALIFORNIA
Notes to the Financial Statements
June 30, 2023
NOTE 6: NONCURRENT LIABILITIES (CONTINUED)
C. Subscription-Based Information Technology Arrangements The City implemented GASB Statement No. 96 in the fiscal year ended June 30, 2023. This Statement provides guidance on the accounting and financial reporting for subscription-based information technology arrangements (SBITAs) for government end users (governments). A SBITA is defined as a contract that conveys control of the right to use another party’s (a SBITA vendor’s) information technology (IT) software, alone or in combination with tangible capital assets (the underlying IT assets), as specified in the contract for a period of time in an exchange or exchange-like transaction. The City recognizes its obligations for various agreements in accordance with GASB Statement No. 96, which measures SBITAs assets of $882,275 net of accumulated amortization, and SBITAs payable of $866,495 at June 30, 2023.

The City entered into various subscription-based information technology subscription agreements over the next three fiscal years. The subscription-based information technology arrangement assets for the year ended June 30, 2023, was as follows:

Amortization expense was charged to functions/programs of the primary government as follows:

The following is a summary of changes in subscription-based information technology arrangements for the year ended June 30, 2023:

Balance Balance
July 1, 2022 Adjustments Additions Deletions June 30, 2023 Subscription-based information
technology arrangements
Subscription assets $ 1,217,079 - $ $ - $ 1,217,079 - $ Total subscription assets 1,217,079 - - 1,217,079 -
Less accumulated amortization
Subscription assets (27,142) - (307,662) (334,804) -
Total Accumulated Amortization (27,142) - (307,662) (334,804) - Total subscription assets, net $ 1,189,937 - $ $ (307,662) $ 882,275 - $ * Adjustments are the result of GASB Statement No 96 implementation.

General Government $ 128,387
Public Safety 66,339
Communict Development 52,771
Parks and Public Works 2,127
Library 58,038
Total Governmental Activities: 307,662 $
Balance Balance Due Within
July 1, 2022 Adjustments Additions Deletions June 30, 2023 One Year Subscription-based information
technology arrangements $ 1,194,960 - $ $ (323,491) - $ $ 871,469 $ 290,028 * Adjustments are the result of GASB Statement No 96 implementation. 40 PAGE 124 of 589

CITY OF SAN MARINO, CALIFORNIA
Notes to the Financial Statements
June 30, 2023
NOTE 6: NONCURRENT LIABILITIES (CONTINUED)
The future payments on subscription-based information technology arrangements are as follow:

The City of San Marino has 30 subscription-based information technology arrangements (SBITA) for the use of various software as of the end of the fiscal year. The City is required to make subscription payments through fiscal year 2026. An initial lease liability was recorded in the amount of $1,194,960. As of June 30, 2023, the value of the subscription liability was $871,469. The City used an interest rates of 3.6% to calculate its subscription liability. The value of the subscription assets as of June 30, 2023 is $1,217,079 with accumulated amortization of $334,804.

D. Compensated Absences
Compensated absences are normally liquidated by the General Fund. There is no fixed payment schedule. At June 30, 2023, the outstanding balances of compensated absences was $1,394,495 and is considered a current liability. Compensated absences are all current liabilities as of June 30, 2023.

NOTE 7: CALPERS DEFINED BENEFIT PENSION PLANS
A. Plan Descriptions
All qualified permanent and probationary employees are eligible to participate in the City’s nine separate cost-sharing multiple-employer defined benefit pension plans administered by the California Public Employees’ Retirement System (CalPERS), which acts as a common investment and administrative agent for its participating member employers. Benefit provisions under the Plans are established by State statute and City resolution.

CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website. The nine City cost-sharing plans are listed as follows:
i. Miscellaneous Plan
ii. Miscellaneous Second Tier Plan
iii. Miscellaneous PEPRA Plan
iv. Safety Fire First Tier Plan
v. Safety Fire Second Tier Plan
vi. Safety Police Plan
vii. Safety Police Second Tier Plan
viii. Safety Fire Second Tier PEPRA Plan
ix. Safety Police PEPRA Plan
Year Ending
June 30 Principal Interest
2024 283,653 $ 21,997 $
2025 288,711 11,634
2026 299,105 897
$ 34,528 871,469 $
Balance Balance
July 1, 2022 Net Changes June 30, 2023
$ 1,454,656 $ (60,161) $ 1,394,495
41 PAGE 125 of 589

CITY OF SAN MARINO, CALIFORNIA
Notes to the Financial Statements
June 30, 2023
NOTE 7: CALPERS DEFINED BENEFIT PENSION PLANS (CONTINUED) B. Benefits Provided
CalPERS provides service retirement and disability benefits, annual cost-of-living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full-time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service.

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

Below is a summary of the plans’ provisions and benefits in effect at June 30, 2023, for which the City has contracted:

Miscellaneous Miscellaneous
Miscellaneous * Second Tier * PEPRA
Hire Date Prior to 1/1/2010 1/1/2010 - 12/31/2012 On or after 1/1/2013 Benefit Provision
Benefit Formula 2.0% @ 55 2.0% @ 60 2.0% @ 62
Social Security no no no
Full/Modified full full full
Benefit Vesting Schedule 5 yr. service 5 yr. service 5 yr. service Benefit Payments monthly for life monthly for life monthly for life Retirement Age 50-63 50-63 52-67
Monthly Benefit as a % of
Eligible Compensatiom 1.426% to 2.418% 1.092% to 2.418% 1.0% to 2.5% Required Employer Contributions Rates 11.610% 9.300% 7.760% Required Employee Contributions Rates 7.000% 7.000% 7.250% Safety Fire
Safety Fire Second Tier
Safety Fire * Second Tier * PEPRA
Hire Date Prior to 1/1/2010 1/1/2010 - 12/31/2012 On or after 1/1/2013 Benefit Provision
Benefit Formula 3.0% @ 50 3.0% @ 55 3.0% @ 57
Social Security no no no
Full/Modified full full full
Benefit Vesting Schedule 5 yr. service 5 yr. service 5 yr. service Benefit Payments monthly for life monthly for life monthly for life Retirement Age 50 50-55 minimum 50
Monthly Benefit as a % of
Eligible Compensatiom 3% 2.4% to 3.0% 1.426% to 2.0%
Required Employer Contributions Rates 25.640% 23.680% 11.380% Required Employee Contributions Rates 9.000% 9.000% 10.750% Safety Police Safety Fire
Safety Police * Second Tier * PEPRA
Hire Date Prior to 1/1/2010 1/1/2010 - 12/31/2012 On or after 1/1/2013 Benefit Provision
Benefit Formula 3.0% @ 50 2.0% @ 55 2.0% @ 57
Social Security no no no
Full/Modified full full full
Benefit Vesting Schedule 5 yr. service 5 yr. service 5 yr. service Benefit Payments monthly for life monthly for life monthly for life Retirement Age 50 50-55 minimum 50
Monthly Benefit as a % of
Eligible Compensatiom 3% 2.4% to 3.0% 1.426% to 2.0%
Required Employer Contributions Rates 25.640% 23.680% 11.380% Required Employee Contributions Rates 9.000% 9.000% 10.750% * Plan is closed to new entrants.
42 PAGE 126 of 589

CITY OF SAN MARINO, CALIFORNIA
Notes to the Financial Statements
June 30, 2023
NOTE 7: CALPERS DEFINED BENEFIT PENSION PLANS (CONTINUED) C. Contribution Description
Section 20814(c) of the California Public Employees’ Retirement Law (PERL) requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on July 1st following notice of a change in the rate. The total plan contributions are determined through the CalPERS’ annual actuarial valuation process. For public agency cost-sharing plans covered by either the Miscellaneous or Safety risk pools, the Plan’s actuarially determined rate is based on the estimated amount necessary to pay the Plan’s allocated share of the risk pool’s costs of benefits earned by employees during the year, and any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees.

For the year ended June 30, 2023, the contributions recognized as a reduction to the net pension liability for all Plans was $907,187 and $3,090,046 for the Miscellaneous Plan and Safety Plan, respectively, for a total of $3,997,233.

D. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions Contributions to the City’s pension plans are made from the general fund. As of June 30, 2023, the City reported net pension liabilities for its proportionate shares of the net pension liability of each Plan as follows:

The City’s net pension liability for each Plan is measured as the proportionate share of the net pension liability. The net pension liability of each of the Plans is measured as of June 30, 2022, and the total pension liability for each Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2021 rolled forward to June 30, 2022 using standard update procedures. The City’s proportion of the net pension liability was based on a projection of the City’s long-term share of contributions to the pension plans relative to the projected contributions of all participating employers, actuarially determined. The City’s proportionate share of the net pension liability for each Plan as of June 30, 2021 and 2022, was as follows:

Proportions as a percentage of the CalPERS Miscellaneous and Safety risk pools:

For the year ended June 30, 2023, the City recognized pension expense, as follows:

Net Pension
Liability
Miscellaneous Plan 10,360,723 $
Safety Plan 31,277,864
Total pension plans 41,638,587 $
Miscellaneous Safety
Proportion - June 30, 2021 0.087% 0.329%
Proportion - June 30, 2022 0.090% 0.171%
Change - Increase (Decrease) 3.100% -47.965%
Pension
Expenses
Miscellaneous Plan (962,401) $
Safety Plan (3,534,364)
Total pension plans (4,496,765) $
43 PAGE 127 of 589

CITY OF SAN MARINO, CALIFORNIA
Notes to the Financial Statements
June 30, 2023
NOTE 7: CALPERS DEFINED BENEFIT PENSION PLANS (CONTINUED) The City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Deferred Outflows Deferred Inflows
of Resources of Resources
Miscellaneous Risk Pool
Contributions subsequent to the
measurement date 1,165,556 $ - $
Changes of assumptions 1,061,673 -
Differences between expected and
actual experience 208,064 139,352
Net difference between projected
and actual earnings on pension
plan investments 1,897,809 -
Adjustment due to differences in 181,178 -
proportions
Difference in actual to proportionate
share contribution - 867,938
Subtotal - Miscellaneuos 4,514,280 1,007,290
Safety Risk Pool
Contributions subsequent to the
measurement date 3,375,365 -
Changes of assumptions 3,153,756 -
Differences between expected and
actual experience 1,294,477 339,653
Net difference between projected
and actual earnings on pension
plan investments 4,939,212 -
Adjustment due to differences in 1,140,094 -
proportions
Difference in actual to proportionate
share contribution - 1,819,880
Subtotal - Safety 13,902,904 2,159,533
Total 18,417,184 $ 3,166,823 $
44 PAGE 128 of 589

CITY OF SAN MARINO, CALIFORNIA
Notes to the Financial Statements
June 30, 2023
NOTE 7: CALPERS DEFINED BENEFIT PENSION PLANS (CONTINUED) The $4,540,921 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the fiscal year ended June 30, 2024. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

E. Actuarial Assumptions
For the measurement period ended June 30, 2022 (the measurement date), the total pension liability was determined by rolling forward the June 30, 2021 total pension liability. The June 30, 2022 total pension liabilities were based on the following actuarial methods and assumptions:

All other actuarial assumptions used in the June 30, 2021 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 under Forms and Publications.

F. Discount Rate
The discount rate used to measure the total pension liability was 6.90 percent for each plan. 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 period of projected benefit payments to determine the total pension liability.

Fiscal year ended June 30, Miscellaneous Safety Total Plans 2024 $ 466,174 $ 2,392,679 $ 2,858,853
2025 447,509 1,896,672 2,344,181
2026 266,986 1,065,673 1,332,659
2027 1,160,765 3,012,982 4,173,747
Total $ 2,341,434 $ 8,368,006 $ 10,709,440
Deferred Outflows/(Inflows) of Resources
Actuarial Cost Method Entry Age Normal Cost Method
Actuarial Assumptions
Discount Rate 6.90%
Inflation 2.30%
Salary Increases Varies by entry age and service
Mortality Rate Table (1) Derived using CalPERS' membership data for all funds
Post Retirement Benefit The lesser of contract COLA up to 2.30% until Increase Purchasing Power Protection Allowance
floor on purchasing power applies, 2.30% thereafter
(1) The mortality table used was developed based on CalPERS-specific data. The probabilities of mortality are based on the 2021 CalPERS Experience Study for the period from 2001 to 2019. Pre-retirement and Post-retirement mortality rates include generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries. For more details on this table, please refer to the CalPERS Experience Study and Review of Actuarial Assumptions report from November 2021 that can be found on the CalPERS website. 45 PAGE 129 of 589

CITY OF SAN MARINO, CALIFORNIA
Notes to the Financial Statements
June 30, 2023
NOTE 7: CALPERS DEFINED BENEFIT PENSION PLANS (CONTINUED) The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.

In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Using historical and forecasted information for all 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.

The table below reflects long-term expected real rate of return by asset class. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation. These geometric rates of return are net of administrative expenses.

G. Sensitivity of the Net Pension Liability to Changes in the Discount Rate The following presents the City’s proportionate share of the net pension liability/ (asset) of the Plan, calculated using the discount rate of 6.90% for each Plan, as well as what the City’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower (5.90%) or 1-percentage-point higher (7.90%) than the current rate (dollars expressed in thousands):

Assumed
Asset
Asset Class Allocation Real Return 1, 2
Global equity-cap-weighted 30.00% 4.45%
Global equity-non-cap-weighted 12.00% 3.84%
Private equity 13.00% 7.28%
Treasury 5.00% 0.27%
Mortgage-backed securities 5.00% 0.50%
Investment grade corporates 10.00% 1.56%
High yield 5.00% 2.27%
Emerging market debt 5.00% 2.48%
Private debt 5.00% 3.57%
Real assets 15.00% 3.21%
Leverage -5.00% -0.59%
1 An expected inflation of 2.30% used for this period.
2 Figures are based on the 2021-22 Asset Liability Management study Discount Rate Current Discount Rate
-1 Percent Discount Rate +1 Percent
(5.90%) (6.90%) (7.90%)
Miscellaneous Plan 15,950,549 $ 10,360,723 $ 5,761,683 $ Safety Plan 45,096,427 31,277,864 19,984,310
Plan's net pension liability/(asset) 61,046,976 $ 41,638,587 $ 25,745,993 $ 46 PAGE 130 of 589

CITY OF SAN MARINO, CALIFORNIA
Notes to the Financial Statements
June 30, 2023
NOTE 7: CALPERS DEFINED BENEFIT PENSION PLANS (CONTINUED) H. Pension Plan Fiduciary Net Position
Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports. See CalPERS website for additional information.

NOTE 8: PARS DEFINED CONTRIBUTION RETIREMENT PLAN
The City of San Marino contributes to the California Public Agency Retirement System (PARS), an agent multiple-employer public employee retirement system that acts as a common investment and administrative agent for participating public entities within the State of California.

The PARS plan is a defined contribution 401(a) plan as defined under Section 401(a) of the Internal Revenue Code, in which the City and the participant each contribute 3.75% of the participant’s compensation before tax. All City employees who are not participating in PERS are required to participate in PARS. Employees are 100% vested in employee and City contributions upon enrollment. As June 30, 2023, the balance in the plan was $291,841. For fiscal year 2022-2023, the City and employee's contributions to PARS were both $18,944 (3.75% of covered payroll), respectively. Total covered payroll was $505,168.

NOTE 9: OTHER POST-EMPLOYMENT BENEFITS
A. Plan Description
The City has established the City of San Marino Retiree Health Insurance Program (the Program), an agent, multiple-employer defined benefit retiree health insurance plan. The Program, which is administered by the City, provides medical insurance benefits to eligible retirees. The plan provides lifetime benefits ranging from $200 to $275 per month towards the health insurance premiums of all employees who retire from employment with the City and who elect to buy insurance through CalPERS. All employees are vested after five years of employment and must reach the age of 50 and qualify for CalPERS retirement in order to receive these benefits. The plan and its contribution requirements are established by Memoranda of Understanding with the applicable employee bargaining units and may be amended by agreement between the City and the bargaining units.

B. Employees Covered
As of the June 30, 2021 valuation date, the following current and former employees were covered by the benefit terms under the Program:

C. Contributions
For the measurement date ended June 30, 2022, the City’s cash contributions were $376,989 in total payments, subsidies and administrative costs, which were recognized as a reduction to the net OPEB liability.

D. Change in Assumptions
The discount rate increased from 2.53% percent at June 30, 2022 to 4.01% percent at June 30, 2023; medical plan election rates at retirement for future retirees was updated based on plan experience; and the mortality improvement scale was updated using 80% of Scale MP-2020.

Active employees electing medical coverage 79
Active employees waiving medical coverage 19
Retirees electing medical coverage 58
Total 156
47 PAGE 131 of 589

CITY OF SAN MARINO, CALIFORNIA
Notes to the Financial Statements
June 30, 2023
NOTE 9: OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)
E. Discount Rate
The discount rated used to measure the net OPEB liability was 4.01%. Per GASB guidance, the single rate that produces the same present value of expected benefit payments as the expected long-term rate of return on plan assets during the period when projected assets are sufficient to pay future retiree benefits, and the 20-year municipal bond rate after assets are projects to be exhausted.

F. Net OPEB Liability
The net OPEB liability was determined using an actuarial valuation as of June 30, 2021 and a measurement date of June 30, 2022, using the following actuarial assumptions.

Actuarial Measurement Date June 30, 2022
Contribution Policy The City established an OPB trust account during fiscal year ending 6/30/2021 and
adopted a formal OPEB funding policy. The
City if committed to making contributions of
$100,000 per year through fiscal year ending
June 30, 2025. Thereafter, trust contrubution
will be made on an ad-hoc basis.tough
Actuarial Cost Method Entry Age Normal
Discount rate 4.01%
Long-term investment return asssumption 5.50%
Inflation rate 2.25%
Mortality
Healthy mortality Pub-2010 General and Safety above-median income Employee and Retiree mortality tables
projected with generational mortality
improvement using 80% of scale MP-2020.

Disabled mortality Pub-2010 General and Safety Disabled mortality tables projected with generational
mortality improvement using 80% of scale MP2020.

Healthcare cost trend rate 6.7% for FY2022, gradually decreasing over several decades to an ultimate rate of 3.7% in
FY 2075 and later years.
48 PAGE 132 of 589

CITY OF SAN MARINO, CALIFORNIA
Notes to the Financial Statements
June 30, 2023
NOTE 9: OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)
G. Changes in the net OPEB Liability
The components of the City’s net OPEB liability as of June 30, 2023, were as follows:

The plan fiduciary net position is from the City’s California Retirees Benefit Trust (CERBT) Fund, which qualifies as an agent multiple-employer plan. The trust is administered through CalPERS and meets the criteria of a Section 115 trust. As of June 30, 2023, the City held $662,927 in the trust account of which $542,571 is realized in the plan fiduciary net position as of measurement date June 30, 2022.

H. Sensitivity of the Net OPEB Liability to Changes in the Discount Rate The following presents the net OPEB liability of the City if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate, for measurement period ended June 30, 2022:

Total OPEB Plan Fiduciary Net OPEB
Liability Net Position Liability/(Asset)
(a) (b) (c) = (a) - (b)
Balance at June 30, 2022 7,499,225 $ 515,785 $ 6,983,440 $ (Measured at 6/30/2021)
Changes recognized for the
measurement period:

Service cost 344,032 344,032 -
Interest on total OPEB liability 194,930 194,930 -
Changes of benefit terms - - -
Changes of assumptions (1,320,614) (1,320,614) -
Differences between expected and (34,428) - (34,428)
actual experience
Net plan to plan resource movement - - -
Contributions-employer 376,989 - (376,989)
Contributions-employee - - -
Net investment income - (73,079) 73,079
Benefit payments, including $96,417 (276,989) (276,989) - implied subsidy costs
Administrative expense - (135) 135
Other miscellaneous (income)/expense - - -
Net changes during 2022-23 (1,093,069) 26,786 (1,119,855) Balance at June 30, 2023 $ 6,406,156 $ 542,571 $ 5,863,585 (Measured at 6/30/2022)
Discount Rate Current Discount Rate
-1 Percent Discount Rate +1 Percent
(3.01%) (4.01%) (5.01%)
Plan's net OPEB liability/(asset) 6,712,767 $ 5, $ 5, 863,585 $ 160,447 49 PAGE 133 of 589

CITY OF SAN MARINO, CALIFORNIA
Notes to the Financial Statements
June 30, 2023
NOTE 9: OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)
I. Sensitivity of the Net OPEB Liability to Changes in the Health Care Cost Trend Rates The following presents the net OPEB liability of the City if it were calculated using health care cost trend rates that are one percentage point lower or one percentage point higher than the current rate, for measurement period ended June 30, 2022:

J. OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB For the fiscal year ended June 30, 2023, the City recognized OPEB expense of $356,264. As of fiscal year, ended June 30, 2023, the City reported deferred outflows of resources related to OPEB from the following sources:

The $291,286 reported as deferred outflows of resources related to contributions subsequent to the June 30, 2022 measurement date will be recognized as a reduction of the net OPEB liability during the fiscal year ending June 30, 2024. Other amounts reported as deferred outflows of resources related to OPEB will be recognized as expense as follows:

Current
1 Percent Heathcare 1 Percent
Decrease Trend Rate Increase
Plan's net OPEB liability/(asset) 5,147,852 $ 5, $ 6, 863,585 $ 854,503 Deferred Outflows Deferred Inflows
of Resources of Resources
Contributions subsequent to the
measurement date 291,286 $ - $
Changes of assumptions 1,026,280 2, 758,874
Differences between expected and
actual experience 771,339 30,059
Net difference between projected
and actual earnings on OPEB
plan investments 72,510 -
Total 2,161,415 $ 2, $ 788,933
Deferred
Outflows/(Inflows)
Fiscal year ended June 30, of Resources
2024 (153,414) $
2025 (153,414)
2026 (141,150)
2027 (69,360)
2028 (82,191)
Thereafter (319,275)
Total (918,804) $
50 PAGE 134 of 589

CITY OF SAN MARINO, CALIFORNIA
Notes to the Financial Statements
June 30, 2023
NOTE 9: OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)
The City began pre-funding the Program through the CERBT during the fiscal year ended June 30, 2021. The City has a policy of contributing City Council approved amounts each year. The CERBT issues a publicly available financial report that includes financial statements and required supplementary information for the City, not individualized, but in aggregate with the other CERBT participating agencies. This report may be obtained at the following address: CERBT - State of California PERS - 400 Q St - Sacramento, California 95811 NOTE 10: RISK MANAGEMENT
A. Description of Self-Insurance Pool Pursuant to Joint Powers Agreement The City is a member of the California Joint Powers Insurance Authority (Authority). The Authority is composed of 124 California public entities and is organized under a joint powers agreement pursuant to California Government Code §6500 et seq. The purpose of the Authority is to arrange and administer programs for the pooling of self-insured losses, to purchase excess insurance or reinsurance, and to arrange for group purchased insurance for property and other lines of coverage. The California JPIA began covering claims of its members in 1978. Each member government has an elected official as its representative on the Board of Directors. The Board operates through a nine-member Executive Committee.

B. Primary Self-Insurance Programs of the Authority
Each member pays an annual contribution at the beginning of the coverage period. A retrospective adjustment is then conducted annually thereafter, for coverage years 2012-13 and prior. Coverage years 2013-14 and forward are not subject to routine annual retrospective adjustment. The total funding requirement for primary self-insurance programs is based on an actuarial analysis. Costs are allocated to individual agencies based on payroll and claims history, relative to other members of the risk-sharing pool.

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

The overall coverage limit for each member, including all layers of coverage, is $50 million per occurrence. Subsidence losses also have a limit of $50 million per occurrence limit. The coverage structure is composed of a combination of pooled self-insurance, reinsurance, and excess insurance. Additional information concerning the coverage structure is available on the Authority’s website: https://cjpia.org/coverage/risk-sharingpools. 51 PAGE 135 of 589

CITY OF SAN MARINO, CALIFORNIA
Notes to the Financial Statements
June 30, 2023
NOTE 10: RISK MANAGEMENT (CONTINUED)
For workers’ compensation, the City is self-insured for the first $750,000 on each claim with excess provided through a buffer layer insurance coverage. Claims expenditures and liabilities for workers’ compensation 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. This liability is the City’s best estimate based on available information. The total liability reserve for workers’ compensation at June 30, 2023 is as follow:

The City estimates that $203,392 of the total claims outstanding at June 30, 2023 will be due within one year.

C. Purchased Insurance

1. Pollution Legal Liability Insurance
The City participates in the pollution legal liability insurance program which is available through the Authority. The policy covers sudden and gradual pollution of scheduled property, streets, and storm drains owned by the City. Coverage is on a claims-made basis. There is a $250,000 deductible. The Authority has an aggregate limit of $20 million.

2. Property Insurance
The City participates in the all-risk property protection program of the Authority. This insurance protection is underwritten by several insurance companies. City property is currently insured according to a schedule of covered property submitted by the City to the Authority. City property currently has all-risk property insurance protection in the amount of $33,699,175. There is a $10,000 deductible per occurrence except for non-emergency vehicle insurance which has a $2,500 deductible.

3. Crime Insurance
The City purchases crime insurance coverage in the amount of $5,000,000 with a $2,500 deductible. The fidelity coverage is provided through the Authority.

4. Adequacy of Protection
During the past three fiscal years, none of the above programs of protection experienced settlements or judgments that exceeded pooled or insured coverage. There were also no significant reductions in pooled or insured liability coverage in 2022-23.

Workers'
Compensation
Liability - June 30, 2021 2,120,834 $
Claims incurred 552,695
Claims payments (630,180)
Liability - June 30, 2022 2,043,349
Claims incurred 994,781
Claims payments (915,053)
Liability - June 30, 2023 2,123,077 $
52 PAGE 136 of 589

CITY OF SAN MARINO, CALIFORNIA
Notes to the Financial Statements
June 30, 2023
NOTE 11: COMMITMENTS AND CONTINGENCIES
Numerous claims and suits have been filed against the City in the normal course of business. Based upon information received from the City Attorney and the self-insurance administrator, the estimated liability under such claims would be adequately covered by self-insurance designations and insurance coverage.

1. Commitments
At June 30, 2023, the City had two material construction commitments. The Sidewalk Replacement Program contracted for $439,215 and has not incurred any expenditures as of June 30, 2023. The San Marino Community Center Renovation Project contracted for $8,363,766 with total expenditures of $5,745,273 as of June 30, 2023.

The total remaining commitments for these projects is $3,057,708.

NOTE 12. FUND BALANCE CLASSIFICATION
At June 30, 2023, the governmental funds report the following fund balance classifications:

Total Total
Capital Nonmajor Governmental
General Projects Fund Funds Funds
Nonspendable
Notes and loans receivable $ 5,157 $ - $ - $ 5,157
Inventories 106,552 - 106,552 -
Prepaid costs 38,426 - - 38,426
Total nonspendable 150,135 - 150,135 -
Restricted
Public safety - 551,446 - 551,446
Public works - 3,476,959 - 3,476,959
Community development - 651,371 - 651,371
Parks and recreation - - 19,857 19,857
Debt service - - 16,406 16,406
CEPPT Investments Trust 1,004,869 - 1,004,869 -
Total restricted 1,004,869 4,716,039 - 5,720,908
Committed
Community development projects 72,288 - - 72,288
Public safety 33,235 - - 33,235
Parks and recreation 62,325 - - 62,325
Library 77,757 - - 77,757
Total committed 245,605 - 245,605 -
Assigned
Capital projects 15,787,572 - 15,787,572 -
Total assigned 15,787,572 - 15,787,572 -
Unassigned 16,224,014 - (50,036) 16,173,978
Total fund balances (deficits) $ 17,624,623 $ 15,787,572 $ 4,666,003 $ 38,078,198 53 PAGE 137 of 589

CITY OF SAN MARINO, CALIFORNIA
Notes to the Financial Statements
June 30, 2023
NOTE 13: NET INVESTMENT IN CAPITAL ASSETS
NOTE 14 PRIOR PERIOD ADJUSTMENTS
Change in Accounting Principle
For fiscal year ended June 30, 2023, the City implemented GASB Statement No. 101, Compensated Absences, which updated the recognition and measurement guidance for compensated absences, to align recognition and measurement under a single unified model to better meet the needs of financial statement users. The effect of the implementation of the change in accounting principle is shown in the table below.

Governmental Internal service
Activities Fund
Capital assets, not being depreciated 155,575,608 $ $ - Capital assets, being depreciated 48,282,933 2,434,012
Less
Lease liabilities (259,785) -
SBITAs liabilities (871,469) -
Net investment in captal assets $ 202,727,287 $ 2,434,012 June 30, 2022 Changes in
As Previously Accounting June 30, 2022
Reported Principle As Restated
Government-wide
Governmental activities 195,250,208 $ (676,368) $ $ 194,573,840 54 PAGE 138 of 589
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)

REVENUES
Taxes $ 28,056,218 28,056,218 $ 28,415,104 $ $ 358,886
Licenses and permits 783,000 783,000 948,014 165,014
Intergovernmental 2,790,259 2,790,259 619,834 (2,170,425) Charges for services 2,214,881 2,214,881 2,611,369 396,488 Use of money and property 115,600 115,600 261,139 145,539 Fines and forfeitures 87,000 87,000 80,164 (6,836)
Contributions 102,009 92,750 102,623 614
Miscellaneous 25,800 25,800 44,485 18,685
Total revenues 34,165,508 34,174,767 33,082,732 (1,092,035)

EXPENDITURES
Current:

General government 5,286,383 5,708,861 4,706,093 1,002,768 Public safety 14,129,947 15,063,980 15,483,327 (419,347) Community development 2,850,164 3,000,707 1,731,989 1,268,718 Parks and recreation 1,885,433 1,985,835 1,834,871 150,964 Public works 3,662,764 3,838,420 3,537,163 301,257
Library 1,583,939 1,668,454 1,367,120 301,334
Capital outlay 516,245 510,000 123,264 392,981
Total expenditures 29,908,630 31,782,502 29,206,089 2,576,413 Excess (deficiency) of revenues
over (under) expenditures 4,256,878 2,392,265 3,876,643 1,484,378

OTHER FINANCING SOURCES (USES)
Leases issued - - 16,572 16,572
Transfers out (4,283,789) (783,789) (4,489,657) (205,868) Total other financing sources (uses) (4,283,789) (783,789) (4,473,085) (189,296) Net change in fund balance 3,473,089 $ (1,891,524) $ (596,442) 1,295,082 $ Fund balance-beginning 18,221,065
Fund balance-ending $ 17,624,623

CITY OF SAN MARINO, CALIFORNIA
General Fund
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual
For the Year Ended June 30, 2023
55 PAGE 139 of 589

CITY OF SAN MARINO, CALIFORNIA
Schedule of Proportationate Share of Net Pension Liability As of June 30, for the Last Ten Fiscal Years 1
Proportionate Share Plan's Fiduciary
Proportion of the Proportionate of the Net Pension Net Position as a Net Pension Share of Net Liability as a % of % of the Total Liability Pension Liability Covered Payroll Covered Payroll Pension Liability 2023 0.0897% $ 10,360,723 $ 4,446,375 233.02% 75.52%
2022 0.0871% 4,712,711 4,639,838 101.57% 88.29%
2021 0.0790% 8,595,291 4,440,251 193.58% 75.10%
2020 0.0762% 7,808,692 4,284,180 182.27% 75.26%
2019 0.0730% 7,034,588 4,335,098 162.27% 75.26%
2018 0.0724% 7,175,549 5,125,321 140.00% 73.31%
2017 0.0704% 6,087,772 3,796,330 160.36% 75.87%
2016 0.0668% 4,582,203 3,862,174 118.64% 79.82%
2015 0.0763% 4,750,553 3,858,674 123.11% 78.40%
2023 0.1712% $ 31,277,864 $ 5,641,650 554.41% 75.52%
2022 0.3294% 17,814,242 5,454,449 326.60% 88.29%
2021 0.2489% 27,079,424 5,553,316 487.63% 75.10%
2020 0.2417% 24,764,857 5,060,432 489.38% 75.26%
2019 0.2372% 22,860,409 4,896,095 466.91% 75.26%
2018 0.2275% 22,563,016 4,779,412 472.09% 73.31%
2017 0.2270% 19,645,542 4,765,647 412.23% 75.87%
2016 0.2268% 15,567,356 4,873,353 319.44% 79.82%
2015 0.2123% 13,207,522 4,674,850 282.52% 78.40%
Notes to Schedule of Proportionate Share of the Net Pension Liability:

Reporting
Date2 as of
June 30,
1 Fiscal year 2015 was the first year of GASB Statement No. 68 implementation; therefore only nine years are shown. 2 The proportions and proportionate share of the net pension liability are measured as of one year behind the reporting date.

Refer to notes to basic financial statements.

Miscellaneous Plan
Safety Plan
Benefit Changes : None
Changes of Assumptions : None
56 PAGE 140 of 589

CITY OF SAN MARINO, CALIFORNIA
Schedule of Plan Contributions
As of June 30, for the Last Ten Fiscal Years 1
Covered/ Contribution as a
Fiscal Year Actuarially Actual Contribution Covered- % of Covered/ Ending Determined Employer Deficiency Employee Covered Employee June 30, Contribution Contributions (Excess) Payroll Payroll 2023 $ 1,165,556 $ 1,165,556 $ - $ 4,793,333 24.32%
2022 907,187 907,187 - 4,446,375 20.40%
2021 747,530 747,530 - 4,639,838 16.11%
2020 659,077 659,077 - 4,440,251 14.84%
2019 687,781 687,781 - 4,284,180 16.05%
2018 585,135 585,135 - 4,335,098 13.50%
2017 539,909 539,909 - 5,125,321 10.53%
2016 552,286 552,286 - 3,796,330 14.55%
2015 463,042 463,042 - 3,862,174 11.99%
2023 $ 3,375,365 $ 3,375,365 $ - $ 6,206,638 54.38%
2022 3,090,046 3,090,046 - 5,641,650 54.77%
2021 2,828,922 2,828,922 - 5,454,449 51.86%
2020 2,553,327 2,553,327 - 5,553,316 45.98%
2019 2,177,743 2,177,743 - 5,060,432 43.03%
2018 1,847,780 1,847,780 - 4,896,095 37.74%
2017 1,751,030 1,751,030 - 4,779,412 36.64%
2016 1,433,464 1,433,464 - 4,765,647 30.08%
2015 1,339,825 1,339,825 - 4,873,353 27.49%
2023 $ 291,286 $ 291,286 $ - $ 12,153,108 2.40%
2022 281,540 281,540 - 11,538,598 2.44%
2021 778,376 778,376 - 11,641,439 6.69%
2020 276,482 276,482 - 10,771,862 2.57%
2019 187,153 187,153 - 10,589,124 1.77%
2018 185,544 185,544 - 11,110,666 1.67%
1 Fiscal year 2015 was the first year of GASB Statement No. 68 implementation for pension plan, therefore only nine years are shown. Fiscal year 2018 was the first year of GASB Statement No. 75 implementation for OPEB plan, therefore only six years are shown.

Single Employer OPEB Plan
Miscellaneous Cost-Sharing, Multiple-Employer Pension Plan Safety Cost-Sharing, Multiple-Employer Pension Plan
57 PAGE 141 of 589

CITY OF SAN MARINO, CALIFORNIA
Schedule of Changes in the Net OPEB Liability and Related Ratios As of June 30, for the Last Ten Fiscal Years 1
2023 2022 2021
Measurement Date 6/30/2022 6/30/2021 6/30/2020

TOTAL OPEB LIABILITY
Service cost $ 344,032 $ 378,759 390,122 $
Interest on total pension liability 194,930 229,315 182,822 Changes of assumptions (1,320,614) 1,366,176 (1,722,567) Difference between expected and actual experience (34,428) 10,965 904,956 Benefit payments, including refunds of employee
contributions 2 (276,989) (276,973) (274,895)
Net change in total OPEB liability (1,093,069) (521,640) 1,710,320 Total OPEB liability-beginning 8,020,865 7,499,225 6,310,545 Total OPEB liability-ending (a) 6,406,156 7,499,225 8,020,865 PLAN FIDUCIARY NET POSITION 3
Contributions-employer 376,989 $ 776,973 274,895
Net investment income (73,079) 15,812 -
Benefit payments, including refunds of employee
contributions (276,989) (276,973) (274,895)
Administrative expense (135) (27) -
Net change in fiduciary net position 26,786 515,785 -
Plan fiduciary net position-beginning - 515,785 -
Plan fiduciary net position-ending (b) 542,571 515,785 - Net OPEB liability/(asset) (a) - (b) $ 5,863,585 $ 6,983,440 $ 8,020,865 Plan fiduciary net position as a percentage of the
total OPEB liability 8.47% 6.88% 0.00%
Covered-employee payroll $ 11,641,439 11,538,598 $ $ 10,771,862 Plan net OPEB liability/(asset) as a percentage of
covered-employee payroll 50.82% 59.99% 74.46%
Notes to Schedule of Changes in the Net OPEB Liability and Related Ratios:
1 Fiscal year 2018 was the first year of GASB Statement No. 75 implementation; therefore only six years are shown. 2 Benefit payments include implicit subsidy.

Benefit Changes : None
Changes of Assumptions : None
3 The plan was not funded through a qualifying trust throgh the measrement date of June 30, 2020, therefore, there is no fiduciary net position to offset the total OPEB liability. 58 PAGE 142 of 589
2020 2019 2018
6/30/2019 6/30/2018 6/30/2017
$ 287,072 274,204 $ 338,547 $
208,836 224,214 179,779
(247,709) 252,998 (665,092)
177,823 - -
(276,274) (273,920) (278,857)
(25,721) 652,965 (425,623)
5,657,580 5,683,301 6,108,924
5,657,580 6,310,545 5,683,301
- - -
- - -
- - -
- - -
- - -
- - -
- - -
$ 5,657,580 6,310,545 $ 5,683,301 $

0.00% 0.00% 0.00%
$ 10,589,124 $ 11,110,666 $ 10,589,124

59.59% 50.92% 53.67%
59 PAGE 143 of 589
7+,63$*(,17(17,21$//</()7%/$1.
60 62
PAGE 144 of 589

CITY OF SAN MARINO, CALIFORNIA
Notes to Required Supplementary Information
June 30, 2023
NOTE 1: BUDGETS AND BUDGETARY ACCOUNTING DATA
The City follows these procedures in establishing the budgetary data reflected in the financial statements:

1. The annual budget is adopted by the City Council and provides for the general operation of the City. The operating budget includes proposed expenditures and the means of financing them.

2. The City Council approves total budgeted appropriations and any amendments to appropriations throughout the year. This "appropriated budget" covers substantially all City expenditures. Actual expenditures may not exceed budgeted appropriations at the fund level. The City Manager is authorized to transfer budgeted amounts between the accounts of any department.

3. Encumbrance accounting, under which purchase orders, contracts and other commitments for the expenditure of monies are recorded to reserve that portion of the applicable appropriation, is employed as an extension of formal budgetary integration in the Governmental Fund Types during the year. However, at year-end all appropriations lapse. Accordingly, encumbrances are canceled and generally reappropriated as part of the following year's budget. Encumbrances are not included in reported expenditures.

4. Budgets for the general, special revenue, debt service, and capital project funds are adopted on a basis substantially consistent with generally accepted accounting principles (GAAP). Accordingly, actual revenues and expenditures can be compared with related budgeted amounts without any significant reconciling items.

5. Under Article XIIIB of the California Constitution (the Gann Spending Limitation Initiative), the City is restricted as to the amount of annual appropriations from proceeds of taxes, and if proceeds of taxes exceed the legal appropriations limit, the excess must either be refunded to the State Controller or returned to the taxpayers through revised tax rates or revised fee schedules, or an excess in one year may be offset against a deficit in the following year. For the fiscal year ended June 30, 2023, based on calculations by City management, appropriations from proceeds of taxes did not exceed the legal appropriations limit.

6. The County Park Bond and the Homeland Security Grant special revenue funds did not adopt a budget for the year ended June 30, 2023.

NOTE 2: ACTUARIAL METHODS AND ASSUMPTIONS USED FOR THE PENSION PLAN CONTRIBUTIONS The actuarial methods and assumptions used to set the actuarially determined CalPERS contributions for fiscal year 2022-23 were from the June 30, 2020 public agency valuations.

Methods and assumptions used to determine contribution rates:

Single and Agent Employers Entry age normal
Amortization method Level Percent of Payroll
20 Years as of the Valuation Date
Assets valuation method Market value
Inflation 2.500%
Salary Increases 2.75%
Investment rate of return 7.0% net of pension plan investment and administrative expense, including inflation
Retirement age 55 years
Mortality Scale MP 2017
61 PAGE 145 of 589

CITY OF SAN MARINO, CALIFORNIA
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2023
ASSETS
Cash and investments $ 22 - $ - $ $ 1,277,375
Receivables (net of allowance for uncollectible):

Taxes 76,938 - - -
Accrued interest - 24 - 20,305
Due from other governments - - - -
Due from other funds 71 - - -
Restricted assets:

Cash and investments with fiscal agents - - - -
Total assets 76,938 117 1,297,680 -

LIABILITIES
Accounts payable - - - 10,993
Accrued liabilities - - - 5,010
Due to other funds - 126,485 9 -
Total liabilities 126,485 - 9 16,003

DEFERRED INFLOWS OF RESOURCES
Unavailable revenues - - - -
Total deferred inflows of resources - - - -

FUND BALANCES (DEFICITS)
Restricted 117 - - 1,281,677
Unassigned - (49,547) (9) -
Total fund balances (deficits) (49,547) 117 1,281,677 (9) Total liabilities, deferred inflows of resources,
and fund balances (deficits) $ 76,938 $ 117 $ 1,297,680 - $ Special Revenue Funds
State Gas Tax
Community
Development
Block Grant
County Park
Bond
Prop. A
Transit
62 PAGE 146 of 589

CITY OF SAN MARINO, CALIFORNIA
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2023
ASSETS
Cash and investments
Receivables (net of allowance for uncollectible):

Taxes
Accrued interest
Due from other governments
Due from other funds
Restricted assets:

Cash and investments with fiscal agents
Total assets

LIABILITIES
Accounts payable
Accrued liabilities
Due to other funds
Total liabilities

DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
Total deferred inflows of resources

FUND BALANCES (DEFICITS)
Restricted
Unassigned
Total fund balances (deficits)
Total liabilities, deferred inflows of resources,
and fund balances (deficits)
(Continued)
$ 19,549 57,909 $ 580,292 $ 51,230 $
- - - -
1,442 308 11,302 818
- 4,030 - -
- - - -
- - - -
19,857 63,381 591,594 52,048
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
19,857 63,381 591,594 52,048
- - - -
19,857 63,381 591,594 52,048
$ 19,857 63,381 $ 591,594 $ 52,048 $
Special Revenue Funds
Air Quality TDA Article 3
Prop. C
Transit Asset Seizure
63 PAGE 147 of 589

CITY OF SAN MARINO, CALIFORNIA
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2023
ASSETS
Cash and investments
Receivables (net of allowance for uncollectible):

Taxes
Accrued interest
Due from other governments
Due from other funds
Restricted assets:

Cash and investments with fiscal agents
Total assets

LIABILITIES
Accounts payable
Accrued liabilities
Due to other funds
Total liabilities

DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
Total deferred inflows of resources

FUND BALANCES (DEFICITS)
Restricted
Unassigned
Total fund balances (deficits)
Total liabilities, deferred inflows of resources,
and fund balances (deficits)
$ 194,556 $ 500,477 $ 4 $ -
- - - -
8 3,107 ,620 - 115
- - - -
- - 5 -
- - - -
509,097 197,663 9 115
9 - ,708 - -
- - - -
- - - 595
9,708 - - 595
- - - -
- - - -
197,663 499,389 9 -
- - - (480)
499,389 197,663 9 (480)
$ 509,097 197,663 $ 9 $ 115 $
Special Revenue Funds
California
Recycling
Grant COPS Grant
Homeland
Security Grant STPL
64 PAGE 148 of 589

CITY OF SAN MARINO, CALIFORNIA
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2023
ASSETS
Cash and investments
Receivables (net of allowance for uncollectible):

Taxes
Accrued interest
Due from other governments
Due from other funds
Restricted assets:

Cash and investments with fiscal agents
Total assets

LIABILITIES
Accounts payable
Accrued liabilities
Due to other funds
Total liabilities

DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
Total deferred inflows of resources

FUND BALANCES (DEFICITS)
Restricted
Unassigned
Total fund balances (deficits)
Total liabilities, deferred inflows of resources,
and fund balances (deficits)
(Continued)
$ 726,189 $ 53,121 $ - $ 345,910
- - - 7,128
11,434 627 - 5,458
- - - -
- - - -
- - - -
53,748 737,623 - 358,496
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
737,623 53,748 - 358,496
- - - -
53,748 737,623 - 358,496
$ 53,748 737,623 $ - $ 358,496 $
Special Revenue Funds
Measure R
OTS Grant
Fund PEG Fund
Measure W
Clean Water
65 PAGE 149 of 589

CITY OF SAN MARINO, CALIFORNIA
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2023
ASSETS
Cash and investments
Receivables (net of allowance for uncollectible):

Taxes
Accrued interest
Due from other governments
Due from other funds
Restricted assets:

Cash and investments with fiscal agents
Total assets

LIABILITIES
Accounts payable
Accrued liabilities
Due to other funds
Total liabilities

DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
Total deferred inflows of resources

FUND BALANCES (DEFICITS)
Restricted
Unassigned
Total fund balances (deficits)
Total liabilities, deferred inflows of resources,
and fund balances (deficits)
$ 19,362 $ 31,215 $ 794,356 $ -
- - - -
4 241 99 12,248 -
- - - -
- 12,228 - -
- - - 41,710
31,714 31,831 806,604 41,710
- - - -
- - - -
- - - 25,304
- - - 25,304
- 26,118 - -
- 26,118 - -
5,713 31,714 806,604 16,406
- - - -
31,714 5,713 806,604 16,406
$ 31,714 31,831 $ 806,604 $ 41,710 $
Debt Service
Special Revenue Funds Fund
Used Oil Grant
Drought
Education
Fund Measure M
City Debt
Service Fund
66 PAGE 150 of 589

CITY OF SAN MARINO, CALIFORNIA
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2023
ASSETS
Cash and investments
Receivables (net of allowance for uncollectible):

Taxes
Accrued interest
Due from other governments
Due from other funds
Restricted assets:

Cash and investments with fiscal agents
Total assets

LIABILITIES
Accounts payable
Accrued liabilities
Due to other funds
Total liabilities

DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
Total deferred inflows of resources

FUND BALANCES (DEFICITS)
Restricted
Unassigned
Total fund balances (deficits)
Total liabilities, deferred inflows of resources,
and fund balances (deficits)
Total
Nonmajor
Funds
$ 4,651,567
84,066
76,548
4,030
12,304
41,710
4,870,225
20,701
5,010
152,393
178,104
26,118
26,118
4,716,039
(50,036)
4,666,003
$ 4,870,225
67 PAGE 151 of 589

CITY OF SAN MARINO, CALIFORNIA
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
For the Year Ended June 30, 2023

REVENUES
Taxes $ - 600,026 $ - $ $ -
Intergovernmental 1,709 - - 340,676
Use of money and property 83 (648) (9) 82,231
Total revenues 599,378 1,792 (9) 422,907

EXPENDITURES
Current:

General government - - - 120,379
Public safety - - - -
Parks and recreation - 1,709 - 33,104
Capital outlay - 650,000 - -
Debt service:

Principal - - - -
Interest and fiscal charges - - - -
Total expenditures 650,000 1,709 153,483 -
Excess (deficiency) of revenues
over (under) expenditures (50,622) 83 (9) 269,424

OTHER FINANCING SOURCES (USES)
Transfers in - - - -
Transfers out - - - -
Total other financing sources (uses) - - - -
Net change in fund balances (50,622) 83 (9) 269,424
Fund balances (deficit)-beginning 34 1,075 - 1,012,253
Fund balances (deficit)-ending $ (49,547) $ 117 $ 1,281,677 (9) $ State Gas Tax
Community
Development
Block Grant
County Park
Bond
Prop. A
Transit
Special Revenue Funds
68 PAGE 152 of 589

CITY OF SAN MARINO, CALIFORNIA
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
For the Year Ended June 30, 2023

REVENUES
Taxes
Intergovernmental
Use of money and property
Total revenues

EXPENDITURES
Current:

General government
Public safety
Parks and recreation
Capital outlay
Debt service:

Principal
Interest and fiscal charges
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures

OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balances
Fund balances (deficit)-beginning
Fund balances (deficit)-ending
(Continued)
$ - - $ - $ $ -
15,765 19,000 282,581 -
6,715 725 71,656 3,394
19,725 22,480 354,237 3,394
- - - -
- - - -
- - - -
- - 815,796 -
- - - -
- - - -
- - 815,796 -
19,725 22,480 (461,559) 3,394
- - - -
- (106,790) - -
- (106,790) - -
19,725 (84,310) (461,559) 3,394
147,691 132 1,053,153 48,654
$ 19,857 63,381 $ 591,594 $ 52,048 $
Air Quality TDA Article 3
Prop. C
Transit Asset Seizure
Special Revenue Funds
69 PAGE 153 of 589

CITY OF SAN MARINO, CALIFORNIA
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
For the Year Ended June 30, 2023

REVENUES
Taxes
Intergovernmental
Use of money and property
Total revenues

EXPENDITURES
Current:

General government
Public safety
Parks and recreation
Capital outlay
Debt service:

Principal
Interest and fiscal charges
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures

OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balances
Fund balances (deficit)-beginning
Fund balances (deficit)-ending
$ - - $ - $ $ -
165,271 - - -
12,891 36,527 9 11,967
201,798 12,891 9 11,967
- - - -
- 70,832 - -
- - - -
- - - 270,626
- - - -
- - - -
70,832 - - 270,626
130,966 12,891 9 (258,659)
- - - -
(97,938) - - -
(97,938) - - -
33,028 12,891 9 (258,659)
184,772 466,361 - 258,179
$ 499,389 197,663 $ 9 $ (480) $
Special Revenue Funds
California
Recycling
Grant COPS Grant
Homeland
Security Grant STPL
70 PAGE 154 of 589

CITY OF SAN MARINO, CALIFORNIA
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
For the Year Ended June 30, 2023

REVENUES
Taxes
Intergovernmental
Use of money and property
Total revenues

EXPENDITURES
Current:

General government
Public safety
Parks and recreation
Capital outlay
Debt service:

Principal
Interest and fiscal charges
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures

OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balances
Fund balances (deficit)-beginning
Fund balances (deficit)-ending
(Continued)
$ - - $ - $ $ 29,179
702,034 211,875 66,563 -
5 35,589 ,990 - 22,334
217,865 737,623 66,563 51,513
- - - -
- - 66,500 -
- - - -
175,000 - - -
- - - -
- - - -
175,000 - 66,500 -
42,865 737,623 63 51,513
- - - -
- - - -
- - - -
42,865 737,623 63 51,513
- 10,883 (63) 306,983
$ 53,748 737,623 $ - $ 358,496 $
Special Revenue Funds
Measure R
OTS Grant
Fund PEG Fund
Measure W
Clean Water
71 PAGE 155 of 589

CITY OF SAN MARINO, CALIFORNIA
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
For the Year Ended June 30, 2023

REVENUES
Taxes
Intergovernmental
Use of money and property
Total revenues

EXPENDITURES
Current:

General government
Public safety
Parks and recreation
Capital outlay
Debt service:

Principal
Interest and fiscal charges
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures

OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balances
Fund balances (deficit)-beginning
Fund balances (deficit)-ending
$ - - $ - $ $ -
- - 239,676 -
2 1,019 ,069 47,474 16,255
2,069 1,019 287,150 16,255
- - - -
- - - -
- - - -
- - - -
- - - 495,000
- - - 57,034
- - - 552,034
2,069 1,019 287,150 (535,779)
- - - 544,712
- - - -
- - - 544,712
2,069 1,019 287,150 8,933
4,694 29,645 519,454 7,473
$ 31,714 5,713 $ 806,604 $ 16,406 $
Debt Service
Special Revenue Funds Fund
Used Oil Grant
Drought
Education
Fund Measure M
City Debt
Service Fund
72 PAGE 156 of 589

CITY OF SAN MARINO, CALIFORNIA
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
For the Year Ended June 30, 2023

REVENUES
Taxes
Intergovernmental
Use of money and property
Total revenues

EXPENDITURES
Current:

General government
Public safety
Parks and recreation
Capital outlay
Debt service:

Principal
Interest and fiscal charges
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures

OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balances
Fund balances (deficit)-beginning
Fund balances (deficit)-ending
Total
Nonmajor
Funds
$ 629,205
2,045,150
356,271
3,030,626
120,379
137,332
34,813
1,911,422
495,000
57,034
2,755,980
274,646
544,712
(204,728)
339,984
614,630
4,051,373
$ 4,666,003
73 PAGE 157 of 589
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)

REVENUES
Taxes $ 684,876 684,876 $ 600,026 $ $ (84,850)
Use of money and property - - (648) (648)
Total revenues 684,876 684,876 599,378 (85,498)

EXPENDITURES
Capital outlay 650,000 675,000 650,000 -
Total expenditures 675,000 650,000 650,000 -
Net change in fund balance 9,876 $ 34,876 $ (50,622) (85,498) $ Fund balance-beginning 1,075
Fund balance (deficit)-ending $ (49,547)

CITY OF SAN MARINO, CALIFORNIA
State Gas Tax
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual
For the Year Ended June 30, 2023
74 PAGE 158 of 589
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)

REVENUES
Intergovernmental $ 3,056 - $ 1,709 $ $ (1,347)
Use of money and property - - 83 83
Total revenues - 3,056 1,792 (1,264)

EXPENDITURES
Current:

Parks and recreation - 3,056 1,709 1,347
Total expenditures - 3,056 1,709 1,347
Net change in fund balance $ - $ - 83 $ 83
Fund balance-beginning 34
Fund balance-ending $ 117

CITY OF SAN MARINO, CALIFORNIA
Community Development Block Grant
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual
For the Year Ended June 30, 2023
75 PAGE 159 of 589
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)

REVENUES
Intergovernmental $ 316,207 316,207 $ 340,676 $ $ 24,469 Use of money and property 5,000 5,000 82,231 77,231
Total revenues 321,207 321,207 422,907 101,700

EXPENDITURES
Current:

General government 124,420 124,420 120,379 4,041
Parks and recreation 41,900 41,900 33,104 8,796
Capital outlay 25,000 25,000 - 25,000
Total expenditures 191,320 191,320 153,483 37,837
Net change in fund balance $ 129,887 $ 129,887 269,424 $ 139,537 Fund balance-beginning 1,012,253
Fund balance-ending $ 1,281,677

CITY OF SAN MARINO, CALIFORNIA
Prop. A Transit
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual
For the Year Ended June 30, 2023
76 PAGE 160 of 589
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)

REVENUES
Intergovernmental $ 18,300 18,300 $ 15,765 $ $ (2,535)
Use of money and property 1,600 1,600 6,715 5,115
Total revenues 19,900 19,900 22,480 2,580

EXPENDITURES
Capital outlay 106,812 - - 106,812
Total expenditures 106,812 - 106,812 -
Excess (deficiency) of revenues
over (under) expenditures 19,900 (86,912) 22,480 109,392

OTHER FINANCING SOURCES (USES)
Transfers out - - (106,790) (106,790)
Total other financing sources (uses) - - (106,790) (106,790) Net change in fund balance $ 19,900 $ (86,912) (84,310) $ 2,602 Fund balance-beginning 147,691
Fund balance-ending $ 63,381

CITY OF SAN MARINO, CALIFORNIA
Air Quality
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual
For the Year Ended June 30, 2023
77 PAGE 161 of 589
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)

REVENUES
Intergovernmental $ 12,210 12,210 $ 19,000 $ $ 6,790
Use of money and property - - 725 725
Total revenues 12,210 12,210 19,725 7,515

EXPENDITURES
Capital outlay 19,000 19,000 - 19,000
Total expenditures 19,000 19,000 - 19,000
Net change in fund balance $ (6,790) $ (6,790) 19,725 $ 26,515 Fund balance-beginning 132
Fund balance-ending $ 19,857

CITY OF SAN MARINO, CALIFORNIA
TDA Article 3
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual
For the Year Ended June 30, 2023
78 PAGE 162 of 589
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)

REVENUES
Intergovernmental $ 262,285 262,285 $ 282,581 $ $ 20,296 Use of money and property 5,000 5,000 71,656 66,656
Total revenues 267,285 267,285 354,237 86,952

EXPENDITURES
Current:

General government 2,500 2,500 - 2,500
Capital outlay 815,796 250,000 815,796 -
Total expenditures 252,500 818,296 815,796 2,500
Net change in fund balance $ 14,785 $ (551,011) (461,559) $ 89,452 Fund balance-beginning 1,053,153
Fund balance-ending $ 591,594

CITY OF SAN MARINO, CALIFORNIA
Prop. C Transit
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual
For the Year Ended June 30, 2023
79 PAGE 163 of 589
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)

REVENUES
Use of money and property $ 100 100 $ 3,394 $ $ 3,294
Total revenues 100 100 3,394 3,294
Net change in fund balance $ 100 $ 100 3,394 $ 3,294
Fund balance-beginning 48,654
Fund balance-ending $ 52,048

CITY OF SAN MARINO, CALIFORNIA
Asset Seizure
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual
For the Year Ended June 30, 2023
80 PAGE 164 of 589
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)

REVENUES
Intergovernmental $ 91,000 - $ - $ $ (91,000)
Use of money and property 500 500 12,891 12,391
Total revenues 500 91,500 12,891 (78,609)
Net change in fund balance $ 500 $ 91,500 12,891 $ (78,609) Fund balance-beginning 184,772
Fund balance-ending $ 197,663

CITY OF SAN MARINO, CALIFORNIA
California Recycling Grant
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual
For the Year Ended June 30, 2023
81 PAGE 165 of 589
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)

REVENUES
Intergovernmental $ 190,000 190,000 $ 165,271 $ $ (24,729) Use of money and property 2,800 2,800 36,527 33,727
Total revenues 192,800 192,800 201,798 8,998

EXPENDITURES
Current:

Public safety 70,832 130,855 70,832 60,023
Capital outlay 97,518 - - 97,518
Total expenditures 70,832 228,373 70,832 157,541
Excess (deficiency) of revenues
over (under) expenditures 121,968 (35,573) 130,966 166,539

OTHER FINANCING SOURCES (USES)
Transfers out - - (97,938) (97,938)
Total other financing sources (uses) - - (97,938) (97,938) Net change in fund balance $ 121,968 $ (35,573) 33,028 $ 68,601 Fund balance-beginning 466,361
Fund balance-ending $ 499,389

CITY OF SAN MARINO, CALIFORNIA
COPS Grant
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual
For the Year Ended June 30, 2023
82 PAGE 166 of 589
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)

REVENUES
Use of money and property $ 1,000 1,000 $ 11,967 $ $ 10,967 Total revenues 1,000 1,000 11,967 10,967

EXPENDITURES
Capital outlay 270,626 - 270,626 -
Total expenditures 270,626 - 270,626 -
Net change in fund balance 1,000 $ (269,626) $ (258,659) 10,967 $ Fund balance-beginning 258,179
Fund balance (deficit)-ending $ (480)

CITY OF SAN MARINO, CALIFORNIA
STPL
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual
For the Year Ended June 30, 2023
83 PAGE 167 of 589
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)

REVENUES
Intergovernmental $ 707,922 - $ 702,034 $ $ (5,888)
Use of money and property - - 35,589 35,589
Total revenues 707,922 - 737,623 29,701
Net change in fund balance $ 707,922 - $ 737,623 $ 29,701 Fund balance-beginning -
Fund balance-ending $ 737,623

CITY OF SAN MARINO, CALIFORNIA
Measure W Clean Water
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual
For the Year Ended June 30, 2023
84 PAGE 168 of 589
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)

REVENUES
Intergovernmental $ 196,714 196,714 $ 211,875 $ $ 15,161 Use of money and property 2,000 2,000 5,990 3,990
Total revenues 198,714 198,714 217,865 19,151

EXPENDITURES
Capital outlay 510,000 510,000 175,000 335,000
Total expenditures 510,000 510,000 175,000 335,000
Net change in fund balance $ (311,286) $ (311,286) 42,865 $ 354,151 Fund balance-beginning 10,883
Fund balance-ending $ 53,748

CITY OF SAN MARINO, CALIFORNIA
Measure R
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual
For the Year Ended June 30, 2023
85 PAGE 169 of 589
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)

REVENUES
Intergovernmental $ 66,563 - $ 66,563 $ $ -
Total revenues - 66,563 66,563 -

EXPENDITURES
Current:

Public safety - 69,120 66,500 2,620
Total expenditures - 69,120 66,500 2,620
Net change in fund balance $ - $ (2,557) 63 $ 2,620
Fund balance (deficit)-beginning (63)
Fund balance-ending $ -

CITY OF SAN MARINO, CALIFORNIA
OTS Grant Fund
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual
For the Year Ended June 30, 2023
86 PAGE 170 of 589
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)

REVENUES
Taxes $ 29,000 29,000 $ 29,179 $ $ 179
Use of money and property 1,700 1,700 22,334 20,634
Total revenues 30,700 30,700 51,513 20,813
Net change in fund balance $ 30,700 $ 30,700 51,513 $ 20,813 Fund balance-beginning 306,983
Fund balance-ending $ 358,496

CITY OF SAN MARINO, CALIFORNIA
PEG Fund
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual
For the Year Ended June 30, 2023
87 PAGE 171 of 589
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)

REVENUES
Use of money and property $ 100 100 $ 1,019 $ $ 919
Total revenues 100 100 1,019 919
Net change in fund balance $ 100 $ 100 1,019 $ 919
Fund balance-beginning 4,694
Fund balance-ending $ 5,713

CITY OF SAN MARINO, CALIFORNIA
Used Oil Grant
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual
For the Year Ended June 30, 2023
88 PAGE 172 of 589
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)

REVENUES
Use of money and property $ 500 500 $ 2,069 $ $ 1,569
Fines and forfeitures 200 200 - (200)
Total revenues 700 700 2,069 1,369
Net change in fund balance $ 700 $ 700 2,069 $ 1,369
Fund balance-beginning 29,645
Fund balance-ending $ 31,714

CITY OF SAN MARINO, CALIFORNIA
Drought Education Fund
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual
For the Year Ended June 30, 2023
89 PAGE 173 of 589
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)

REVENUES
Intergovernmental $ 222,942 222,942 $ 239,676 $ $ 16,734 Use of money and property 1,000 1,000 47,474 46,474
Total revenues 223,942 223,942 287,150 63,208
Net change in fund balance $ 223,942 $ 223,942 287,150 $ 63,208 Fund balance-beginning 519,454
Fund balance-ending $ 806,604

CITY OF SAN MARINO, CALIFORNIA
Measure M
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual
For the Year Ended June 30, 2023
90 PAGE 174 of 589
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)

REVENUES
Use of money and property $ - - $ (32,760) $ $ (32,760) Contributions 100,000 - 100,000 -
Miscellaneous 25,000 25,000 - (25,000)
Total revenues 25,000 125,000 67,240 (57,760)

EXPENDITURES
Current:

Public safety 9,500 152,800 126,057 26,743
Public works 1,457,989 1,544,322 104,136 1,440,186
Capital outlay 18,337,261 12,511,500 6,459,996 11,877,265 Total expenditures 13,978,989 20,034,383 6,690,189 13,344,194 Excess (deficiency) of revenues
over (under) expenditures (13,953,989) (19,909,383) (6,622,949) 13,286,434

OTHER FINANCING SOURCES (USES)
Transfers in 3,500,000 - 3,550,000 50,000
Total other financing sources (uses) 3,500,000 - 3,550,000 50,000 Net change in fund balance (13,953,989) $ (16,409,383) $ (3,072,949) 13,336,434 $ Fund balance-beginning 18,860,521
Fund balance-ending $ 15,787,572

CITY OF SAN MARINO, CALIFORNIA
Capital Projects Fund
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual
For the Year Ended June 30, 2023
91 PAGE 175 of 589
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)

REVENUES
Use of money and property $ - - $ 16,255 $ $ 16,255
Total revenues - - 16,255 16,255

EXPENDITURES
Debt service:

Principal 495,000 495,000 495,000 -
Interest 57,034 57,034 57,034 -
Total expenditures 552,034 552,034 552,034 -
Excess (deficiency) of revenues
over (under) expenditures (552,034) (552,034) (535,779) 16,255

OTHER FINANCING SOURCES (USES)
Transfers in 544,712 544,712 544,712 -
Total other financing sources (uses) 544,712 544,712 544,712 - Net change in fund balance $ (7,322) $ (7,322) 8,933 $ 16,255 Fund balance-beginning 7,473
Fund balance-ending $ 16,406

CITY OF SAN MARINO, CALIFORNIA
City Debt Service Fund
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual
For the Year Ended June 30, 2023
92 PAGE 176 of 589
Fiscal Year 2019 2020 2021 2022 2023
Governmental activities:

Net investment in capital assets $ 193,203,453 $ 192,831,880 $ 193,865,532 $ 195,581,766 $ 202,727,287 Restricted for:

Community development projects 489,125 555,102 595,999 639,519 651,371 Public safety 308,496 367,893 497,374 515,015 551,446
Parks and recreation - - - - 19,857
Public works 2,847,025 2,931,573 3,116,062 2,756,112 3,476,959 Capital projects 474,782 389, 324,687 004 519,454 -
Debt service 17,569 25,261 25,305 7,473 16,406
Section 115 Trust - - 983,628 - 1,004,869
Unrestricted (4,160,588) (4,468,086) ( (5,752,759) 5,187,251) (4,606,790) Total governmental activities net position 193,179,862 $ 192,632,627 $ 193,237,708 $ 195,250,208 $ 203,841,405 $ Fiscal Year 2014 2015 2016 2017 2018
Governmental activities:

Net investment in capital assets $ 188,499,194 $ 191,516,729 $ 192,536,926 $ 193,671,643 $ 194,032,139 Restricted for:

Community development projects 75,463 119,000 174,805 277,005 431,248 Public safety 186,567 164,060 168,205 199,326 245,620
Parks and recreation 426,932 461,179 514,922 444,560 -
Public works 1,343,347 460,118 1,090,473 1,336,305 1,885,450 Capital projects - - - - 12,606
Debt service 3,391 51 105 706 5,618
Other 154,035 - - - -
Library 93,841 - 93,841 - -
Unrestricted 16,149,784 (8,780,178) (6,745,506) (5,347,593) (8,207,680) Total governmental activities net position 206,838,713 $ 184,034,800 $ 187,833,771 $ 190,581,952 $ 188,405,001 $ Source:

City Finance Department
(accrual basis of accounting)
Net Position by Component
Last Ten Fiscal Years
93 PAGE 177 of 589
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Expenses:

Governmental Activities:

General government 2,597,992 $ 3,320,007 $ 2,326,271 $ 3,077,339 $ 3,663,683 $ 3,521,907 $ 4,354,899 $ 4,042,349 $ 4,611,101 $ 5,102,929 $ Public safety 10,758,331 10,548,949 11,597,897 12,645,452 12,280,195 13,445,148 15,598,297 15,545,191 15,698,333 12,582,689Community development 921,167 997,514 1,174,123 1,181,366 1,338,231 1,494,584 1,769,276 1,848,428 2,154,836 1,487,856Recreation 2,001,992 2,072,272 2,017,404 2,165,445 1,985,949 1,779,953 1,623,266 1,050,051 1,433,822 1,664,964Parks and public works 3,697,649 3,576,954 4,618,557 4,563,872 4,718,783 4,486,175 6,255,832 6,475,534 4,908,159 4,451,328Library 1,611,557 1,714,096 1,836,550 1,931,218 1,971,684 1,721,390 1,965,221 1,755,493 1,746,247 1,491,233Interest on long-term debt 302,883 282,727 261,276 233,938 207,193 174,332 140,158 103,557 81,328 110,731 Total Primary Government 21,891,571 22,512,519 23,832,078 25,798,630 26,165,718 26,623,489 31,706,949 30,820,603 30,633,826 26,891,730 Program Revenues:

Governmental Activities:

Charges for services General government 251,629 347,634 402,267 222,587 420,474 232,803 177,658 343,695 222,525 310,890 Public safety 3,875,566 3,882,070 4,354,843 4,686,373 4,100,997 4,268,794 4,312,639 4,265,822 4,303,390 4,452,758 Community development 988,985 1,048,145 947,995 926,421 1,029,530 890,995 1,063,005 1,024,293 1,006,379 1,239,025 Recreation 1,279,805 1,334,840 1,361,590 1,498,398 1,363,127 1,239,850 669,887 368,093 688,749 1,042,594 Parks and public works 107,927 96,354 152,005 154,455 263,667 239,935 295,619 218,978 194,465 167,623 Library 73,799 107,222 181,340 261,362 249,697 288,131 183,123 77,857 240,122 198,294Operating grants and contributions 2,414,284 1,880,539 1,335,022 1,139,951 1,197,873 1,662,211 1,251,970 1,348,383 1,994,903 1,765,001Capital grants and contributions 139,163 183,052 149,969 152,621 440,121 361,827 354,832 384,133 373,503 1,172,585Total Governmental Activities Program Revenues 9,131,158 8,879,856 8,885,031 9,042,168 9,065,486 9,184,546 8,308,733 8,031,254 9,024,036 10,348,770 General Revenues:

Taxes
Property taxes, levied for general purposes 12,400,796 12,697,179 13,498,406 14,143,693 14,893,990 15,973,630 16,606,474 17,620,277 18,265,599 18,900,735 Property taxes in lieu of motor vehicle fees 1,428,019 1,437,563 1,469,628 1,510,208 1,717,044 1,980,779 2,075,327 2,185,451 2,238,910 2,356,542Sales taxes 375,779 398,890 397,155 471,675 457,068 517,556 396,599 357,873 526,987 591,677Franchise taxes 577,961 596,534 504,114 565,976 599,333 576,612 581,382 638,415 625,255 712,639Business licenses taxes 511,963 484,672 452,025 444,485 429,476 492,241 392,172 411,005 406,759 444,375Utility users tax 1,801,159 1,715,574 1,687,842 1,615,883 1,641,964 1,643,375 1,644,239 1,803,909 1,873,500 2,175,428 Use of money and property 202,050 274,288 299,643 358,716 464,864 950,011 851,960 348,839 (470,936) 584,644Other revenues 145,332 382,801 256,129 369,448 328,034 79,600 300,318 47,215 156,216 44,485Gain (loss) on disposal of capital asset - - - 24,559 - - - - - - Total General Revenues 17,443,059 17,987,501 18,564,942 19,504,643 20,531,773 22,213,804 22,848,471 23,412,984 23,622,290 25,810,525 Change in Net Position 4,682,646 4,354,838 3,617,895 2,748,181 3,431,541 4,774,861 (549,745) 623,635 2,012,500 9,267,565 Net Position at Beginning of Year 202,156,067 206,838,713 184,034,800 187,833,771 190,581,952 188,405,001 193,179,862 192,632,627 193,237,708 195,250,208Restatement of Net Position - (27,158,751) 181,076 - (5,608,492) - 2,510 (18,554) - (676,368)Net Position at End of Year 206,838,713 $ 184,034,800 $ 187,833,771 $ 190,581,952 $ 188,405,001 $ 193,179,862 $ 192,632,627 $ 193,237,708 $ 195,250,208 $ 203,841,405 $ Source:

City Finance Department
Fiscal Year Ended June 30,
(accrual basis of accounting)
Last Ten Fiscal Years
Changes in Net Position
94 PAGE 178 of 589
General fund: 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Nonspendable: Inventory 44,490 $ 41,146 $ 34,844 $ 74,759 $ 68,268 $ 71,648 $ 53,288 $ 57,764 $ 80,034 $ 106,552 $ Prepaid costs 309,535 - 6,357 - 779 - - - 218,921 38,426 Notes and loans 64,760 41,295 27,628 20,169 19,155 19,155 19,155 14,600 8,656 5,157Restricted for: Public Works - - - - - - - - 376,254 - Section 115 trust - - - - - - - - 983,628 1,004,869
Committed to: Community development projects - - - - 72,288 72,288 72,288 72,288 72,288 72,288 Public safety 12,007 9,159 9,159 - 2,953 7,462 32,302 50,823 66,102 33,235 Parks and recreation 55,847 69,193 68,899 - 67,653 119,402 116,965 118,708 66,805 62,325 Library 154,035 93,841 93,841 - 48,858 51,832 88,508 62,217 69,182 77,757Unassigned 18,065,015 20,426,896 21,574,775 23,454,629 12,169,563 17,007,572 15,271,353 16,164,877 16,279,195 16,224,014 Total general fund 18,705,689 20,681,530 21,815,503 23,549,557 12,449,517 17,349,359 15,653,859 16,541,277 18,221,065 17,624,623All other governmental funds:

Nonspendable: Prepaid costs 87,311 - - - - - - - - -Restricted for: Community development projects 75,463 119,000 174,805 277,005 431,248 489,125 545,942 595,952 639,480 651,371 Public safety 111,767 154,901 159,046 199,326 245,620 308,496 366,393 497,374 515,015 551,446 Parks and recreation 371,085 391,986 446,023 444,560 - - - - - 19,857 Public Works 1,343,347 460,118 1,090,473 1,336,305 1,885,450 2,832,181 2,921,729 3,106,218 2,370,014 3,476,959 Capital Projects - - - - 12,606 474,782 389,004 324,687 519,454 - Debt service 3,391 51 105 706 5,618 17,569 25,261 25,305 7,473 16,406 Assigned to: Capital Projects - - - - - 13,827,220 17,957,353 18,324,777 18,860,521 15,787,572Unassigned (645,507) (267,935) (404,292) (460,667) 14,300,322 (5,833) (17,293) (7,274) (63) (50,036) Total all other governmental funds 1,346,857 858,121 1,466,160 1,797,235 16,880,864 17,943,540 22,188,389 22,867,039 22,911,894 20,453,575 Total fund balances 20,052,546 $ 21,539,651 $ 23,281,663 $ 25,346,792 $ 29,330,381 $ 35,292,899 $ 37,842,248 $ 39,408,316 $ 41,132,959 $ 38,078,198 $ Source: City Finance Department
(modified accrual basis of accounting)
Last Ten Fiscal Years
Fund Balances of Governmental Funds
95 PAGE 179 of 589
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Revenues:

Taxes 20,475,166 $ 20,688,990 $ 21,424,459 $ 22,238,039 $ 23,342,737 $ 24,923,433 $ 25,490,434 $ 26,821,527 $ 27,767,502 $ 29,044,309 $ Licenses and permits 558,674 662,126 685,674 683,935 834,998 784,289 786,069 760,185 804,531 948,014Intergovernmental 1,858,993 2,169,405 1,189,144 893,178 1,259,664 1,578,698 1,170,768 1,499,159 1,937,155 2,664,984Charges for services 2,648,851 2,662,651 3,230,346 3,616,666 2,920,677 2,625,842 1,964,404 1,540,097 2,149,751 2,611,369Use of money and property 202,050 274,288 299,643 358,716 464,864 949,750 850,394 346,854 (473,043) 584,650Fines and forfeitures 267,761 269,198 215,098 173,709 273,306 174,096 347,188 235,232 41,997 80,164Contributions 348,076 179,092 257,642 93,599 303,673 293,727 245,790 202,605 211,690 202,623Miscellaneous 148,067 382,801 258,957 369,448 312,834 79,600 300,318 47,215 156,216 44,485Total revenues 26,507,638 27,288,551 27,560,963 28,427,290 29,712,753 31,409,435 31,155,365 31,452,874 32,595,799 36,180,598 Expenditures:

Current:

General government 1,959,810 2,211,594 2,398,036 2,656,315 3,549,700 3,469,559 4,255,567 3,891,436 4,388,663 4,826,472 Public safety 9,871,819 10,862,956 11,768,225 11,793,484 11,435,033 12,247,210 13,229,265 13,831,763 14,181,691 15,746,716Community development 923,284 998,837 1,227,472 1,150,283 1,282,435 1,506,893 1,540,449 1,703,058 2,071,690 1,731,989Parks and recreation 1,996,126 2,084,027 2,109,214 2,125,041 1,924,088 1,788,154 1,483,911 935,392 1,397,044 1,869,684Public works 2,817,525 2,860,885 3,807,213 3,581,924 3,435,691 3,309,652 4,787,094 5,090,800 3,522,263 3,641,299Library 1,309,483 1,428,748 1,595,360 1,613,911 1,611,865 1,441,970 1,432,217 1,326,667 1,391,883 1,367,120 Capital outlay 3,190,767 4,515,070 2,265,176 2,680,641 1,194,227 909,734 1,314,820 2,350,598 3,407,784 8,494,682Debt service:

Principal retirement 385,000 420,000 475,000 525,000 580,000 645,000 705,000 410,000 450,000 891,580 Interest and fiscal charges 302,895 282,913 260,737 235,562 207,370 176,224 141,587 103,729 81,712 82,716 Total expenditures 22,756,709 25,665,030 25,906,433 26,362,161 25,220,409 25,494,396 28,889,910 29,643,443 30,892,730 38,652,258Excess (deficiency) of revenues over (under)expenditures 3,750,929 1,623,521 1,654,530 2,065,129 4,492,344 5,915,039 2,265,455 1,809,431 1,703,069 (2,471,660) Other financing sources (uses):

Transfers in 1,994,970 3,504,786 3,004,243 3,466,229 15,840,975 996,336 6,127,771 3,805,503 2,863,729 4,094,712Transfers out (1,994,970) (3,644,609) (2,999,096) (3,466,229) (16,349,730) (948,857) (5,846,587) (4,048,666) (2,863,729) (4,694,385)Leases and subscriptions financing - - - - - - - - 21,574 16,572Total other financingsources (uses) - (139,823) 5,147 - (508,755) 47,479 281,184 (243,163) 21,574 (583,101) Net changes in fund balances 3,750,929 $ 1,483,698 $ 1,659,677 $ 2,065,129 $ 3,983,589 $ 5,962,518 $ 2,546,639 $ 1,566,268 $ 1,724,643 $ (3,054,761) $ Debt service as a percentage of noncapital expenditures 3.52% 3.32% 3.11% 3.21% 3.28% 3.34% 3.07% 1.88% 1.93% 3.23% Source: City Finance Department
Last Ten Fiscal Years
Changes in Fund Balances of Governmental Funds
Fiscal Year Ended June 30,
(modified accrual basis of accounting)
96 PAGE 180 of 589


 







 








 











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PAGE 181 of 589
Agency 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 Basic Levy* 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000Metropolitan Water District 0.004 0.004 0.004 0.004 0.004 0.004 0.004 0.004 0.004 0.004Pasadena Community College District 0.019 0.010 0.009 0.009 0.008 0.008 0.007 0.006 0.009 0.009Pasadena Unified School District 0.104 0.106 0.112 0.107 0.105 0.095 0.045 0.023 0.054 0.078San Marino Unified 0.076 0.074 0.071 0.070 0.068 0.067 0.067 0.067 0.069 0.067Total Direct & Overlapping Tax Rates **

1.202 1.194 1.195 1.189 1.185 1.173 1.123 1.099 1.135 1.157 City's Share of 1% Levy Per Prop 13*** 0.2364 0.2364 0.2364 0.2364 0.2364 0.2364 0.2364 0.2364 0.2364 0.2364Voter Approved City Debt RateRedevelopment Rate****Total Direct Rate***** 0.23440 0.23451 0.23463 0.23472 0.23482 0.23489 0.23496 0.23502 0.23505 0.23512 * In 1978, California voters passed Proposition 13 which sets the property tax rate at a 1.00% fixed amount. This 1.00% is shared by all taxing agencies for which the subject property resides within. In addition to the 1.00% fixed amount, property ownersare charged taxes as a percentage of assessed property values for the payment of any voter approved bonds. ** Overlapping rates are those of local and county governments that apply to property owners within the City. Not all overlapping rates apply to all property owners.
*** City's Share of 1% Levy is based on the City's share of the general fund tax rate area with the largest net taxable value within the City.

The ERAF portion of the City's Levy has been subtracted where known. **** Redevelopment Rate is based on the largest RDA tax rate area (TRA) and includes only rate(s) from indebtedness adopted prior to 1989 per California State statute. RDA direct and overlapping rates are applied only to the incremental property values.The approval of ABX1 26 eliminated Redevelopment from the State of California for the fiscal year 2012/13 and years thereafter. ***** Total Direct Rate is the weighted average of all individual direct rates applied by the City/Agency preparing the statistical section information and excludes revenues derived from aircraft. Beginning in 2013/14 the Total Direct Rate no longer includes revenue generated from the former redevelopment tax rate areas. Challenges to recognized enforceable obligations are assumed to have been resolved during 2012/13. For the purposes of this report, residual revenue is assumed to be distributed to the City/Agency in the same proportions as general fund revenue.

Source: Hdl Coren & Cone
Direct and Overlapping Property Tax Rates
(Rate per $100 of Assessed Value)
98 PAGE 182 of 589
Fiscal
Year Total Taxable Total
Ended Secured Unsecured Other Assessed Direct
June 30, Property Property Property Value Tax Rate % Change 2013-14 $ 4,910,011,924 $ 10,178,433 4,920,190,357 - $ 0.2344 2014-15 5,192,425,954 12,590,785 5,205,016,739 0.2345 5.79% - 2015-16 5,549,685,748 11,589,954 5,561,275,702 0.2346 6.84% - 2016-17 5,840,557,197 11,658,362 5,852,215,559 0.2347 5.23% - 2017-18 6,223,799,885 11,069,004 6,234,868,889 0.2348 6.54% - 2018-19 6,530,465,845 10,979,041 6,541,444,886 0.2349 4.92% - 2019-20 6,840,013,682 11,075,493 6,851,089,175 0.2350 4.73% - 2020-21 7,125,216,090 10,777,605 7,135,993,695 0.2350 4.16% - 2021-22 7,311,619,098 13,396,757 7,325,015,855 0.2351 2.65% - 2022-23 7,707,852,850 14,237,903 7,722,090,753 0.2351 5.42% - Note: Exempt values are not included in Total Net Taxable Values.

In 1978 the voters of the State of California passed Proposition 13 which limited taxes to a total maximum rate of 1%, based upon the assessed value of the property being taxed. Each year, the assessed value of property may be increased by an "inflation factor" (limited to a maximum of 2%).

With few exceptions, property is only reassessed as a result of new construction activity or at the time it is sold to a new owner. At that point, the property is reassessed based upon the added value of the construction or at the purchase price (market value) or economic value of the property sold. The assessed valuation data shown above represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitations described above.

Source: HDL Coren & Cone and Los Angeles County Assessor's Combined Tax Rolls. 2013/14 - 2022/23 Taxable Property Values
(unaudited)
Assessed and Estimated Actual Values of Taxable Property Real Property
$-
$1,000,000,000
$2,000,000,000
$3,000,000,000
$4,000,000,000
$5,000,000,000
$6,000,000,000
$7,000,000,000
$8,000,000,000
$9,000,000,000
2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 Millions
Fiscal Year
Net Assessed Value
99 PAGE 183 of 589

Secured & Unsecured Percentage of Total
2022-23 Assessed Valuation Net Assessed Valuation
Charles B. Jr and Geneva H. Thornton $ 0.42% 32,357,577 Prestige Cascade LLC 0.32% 25,000,000
WG LLC 0.26% 20,267,461
Fantastic San Marino Properties LLC 0.26% 20,045,520
California American Water Company 0.26% 19,933,918
Carl K and Linda C Moy 0.21% 16,368,266
Yitai Group Investment USA 0.21% 16,105,861
Ye Yanwei and Hui Zhang 0.18% 13,810,066
Chen Lei 0.17% 13,495,686
Ming Wang 0.17% 13,147,785
Top Ten Total $ 2.47% 190,532,140
City Total $ 7,722,090,753
Secured & Unsecured Percentage of Total
2013-14 Assessed Valuation Net Assessed Valuation
Charles B. Thornton Jr. $ 0.56% 27,310,327
Jiajing Family Limited Partnership 0.36% 17,500,000
California American Water Company 0.23% 11,097,418
Bijan Partovi Trust 0.22% 10,980,369
Andrew F. Barth Company Trust 0.22% 10,791,333
Nianyong Wang Company Trust 0.19% 9,228,348
Perfect Design LP 0.17% 8,563,000
Wei Wang 0.17% 8,274,306
Qin Zhou 0.17% 8,268,120
Fang Z. Liu Trust 0.16% 7,944,329
Top Ten Total $ 119,957,550 2.44%
City Total $ 4,920,190,357
Source: Hdl Coren & Cone.

Top 10 Property Taxpayers
Current Year and Nine Years Ago
100
PAGE 184 of 589
Category 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 Residential 4,732,818,638 $ 5,013,078,618 $ 5,349,273,573 $ 5,632,287,793 $ 6,008,153,556 $ 6,303,176,985 $ 6,584,410,979 $ 6,871,117,800 $ 7,046,134,705 $ 7,423,450,614 $ Commercial 144,877,484 148,255,040 164,536,707 176,077,469 181,030,745 186,583,876 200,492,530 208,080,364 215,519,285 223,851,276Industrial 1,230,258 160,985 164,199 166,700 170,032 173,431 176,897 180,433 182,299 185,943Institutional - 27,959 - - - - 6,424,212 - 4,516,088 11,359,399Miscellaneous 314,367 189,063 187,552 206,496 215,827 219,770 225,749 228,265 229,594 232,187Recreational 2,288,015 2,298,400 4,980,967 5,056,923 2,834,319 2,749,417 2,804,403 2,860,489 862,461 879,709Vacant 16,973,914 17,372,089 17,331,935 13,123,324 18,041,603 21,972,207 28,195,908 22,977,473 24,064,469 25,551,553Cross Reference 11,509,248 11,043,800 13,210,815 13,638,492 13,353,803 15,590,259 17,283,004 19,771,266 20,110,197 22,342,169Unsecured 10,178,433 12,590,785 11,589,954 11,658,362 11,069,004 10,979,041 11,075,493 10,777,605 13,396,757 14,237,903Exempt (7,750,753) (7,750,753) (7,828,922) (7,828,922) (7,828,922) (7,828,922) (7,828,922) (7,828,922) (7,828,922) (7,828,922) Totals 4,912,439,604 $ 5,197,265,986 $ 5,553,446,780 $ 5,844,386,637 $ 6,227,039,967 $ 6,533,616,064 $ 6,843,260,253 $ 7,128,164,773 $ 7,317,186,933 $ 7,714,261,831 $ Total Direct Rate 0.23440 0.23451 0.23463 0.23472 0.23482 0.23489 0.23496 0.23502 0.23505 0.23512 Notes: Exempt values are not included in Total. In 1978 the voters of the State of California passed Proposition 13 which limited taxes to a total maximum rate of 1%, based upon the assessed value of the property being taxed. Each year, the assessed value of property may be increased by an "inflation factor" (limited to a maximum of 2%). With few exceptions, property is only reassessed as a result of new construction activity or at the time it is sold to a new owner. At that point, the property is reassessed based upon the added value of the construction or at the purchase price (market value) or economic value of the property sold. The assessed valuation data shown above represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitations described above.

Source: Hdl Coren & Cone
Last Ten Fiscal Years
Assessed Value of Taxable Property by Category
101
PAGE 185 of 589
Fiscal Year Taxes Levied
Ended for the
June 30 Fiscal Year Amount % to Levy Years % to Levy
2014 $ 12,144,882 11,528,885 $ 94.93% 615,997 5.07%
2015 12,464,784 11,827,843 94.89% 636,941 5.11%
2016 13,253,014 12,601,451 95.08% 651,563 4.92%
2017 13,936,746 13,074,268 93.81% 862,478 6.19%
2018 14,703,953 14,121,763 96.04% 582,190 3.96%
2019 15,767,853 15,394,941 97.63% 372,912 2.37%
2020 16,475,820 16,094,480 97.69% 381,340 2.31%
2021 17,378,503 16,894,937 97.22% 483,566 2.78%
2022 17,945,192 16,979,687 94.62% 965,505 5.38%
2023 18,718,893 18,200,561 97.23% 518,332 2.77%
Source: Los Angeles County Auditor/Controller.

City Finance Department
Property Tax Levies and Collections
Last Ten Fiscal Years
Fiscal Year of Levy
Collected within the Collections in
Subsequent
(unaudited)
102
PAGE 186 of 589
2022/23 Assessed Valuation: $ 7,722,909,753
Total Debt City's Share of
Overlapping Tax and Assessment Debt: 6/30/2023 % Applicable (1) Debt 6/30/2023 Metropolitan Water District $ 19,215,000 0.212 $ 40,736 Pasadena Area Community College District 51,995,000 7.149 3,717,123 Pasadena Unified School District 313,070,000 0.001 3,131 San Marino Unified School District 6,632,766 91.146 6,045,501 Total Overlapping Tax and Assessment Debt 9,806,491
Overlapping General Fund Debt:

Los Angeles County General Fund Obligations 2,601,551,282 $ 0.408 10,614,329 Los Angeles County Superintendent of Schools Certificates of Participation 3,403,487 0.408 13,886 Los Angeles County Sanitation District No. 16 Authority 495,396 12.221 60,542 Pasadena Area Community College District Certificates of Participation 28,785,000 7.149 2,057,840 San Marino Unified School District Certificates of Participation 5,680,000 91.146 5,177,093 Total Overlapping General Fund Debt 17,923,690
Total Overlapping Debt 27,730,181
City of San Marino Direct Debt:

City of San Marino Pension Obligation Bonds 545,000
Capital Leases 264,759
Total City of San Marino Direct Debt 809,759
Combined Total Direct and Overlapping Debt $ (2) 28,539,940 Notes:
(1) The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's total taxable assessed value.
(2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non-bonded capital lease obligations. Qualified Zone Academy Bonds are included based on principal due at maturity.

Ratios to 2022-23 Assessed Valuation:

Total Overlapping Tax and Assessment Debt 0.13%
Total City of San Marino Direct Debt 0.01%
Combined Total Debt 0.37%
Source:

California Municipal Statistics
City Finance Department
(unaudited)
Direct and Overlapping Debt
June 30, 2023
103
PAGE 187 of 589
General Information
Date of Incorporation April 13, 1913
Form of Government Council-Manager
City Type General Law
Area 3.77 Square Miles
Lane Miles 119.5
Public Safety
Police Protection City-Owned and Operated, 1 Station
Fire Protection City-Owned and Operated, 1 Station
Education
School District San Marino Unified School District
Schools 1 High School, 1 Middle School, & 2 Elementary Schools Population Distribution by Race (2020 US Census) Percent Asian-American 64.6%
European-American 26.0%
Hispanic or Latino 7.0%
Other 2.4%
Single Family Residential Full Value Sales (01/01/2021-06/30/23) * Year Full Value Sales Average Price Median Price Median % Change 2021 182 $ 2,870,723 $ 2,490,000
2022 135 2,966,474 2,618,000 5.14%
2023 49 (Jan-June 2023) 2,898,755 2,520,000 -3.74%
* "Single Family Residential" includes both stand-alone homes and townhouses and condos with a common wall.

Los Angeles County Recorder
HdL Coren & Cone
US Bureau of the Census. The official population census of the United States is conducted every ten years. (unaudited)
Demographic and Economic Statistics
Notes and Data Sources:
$2,400,000
$2,450,000
$2,500,000
$2,550,000
$2,600,000
$2,650,000
$2,490,000 2,618,000 2,520,000
Median Price
Median Price
104
PAGE 188 of 589
Personal Income Per Capita Unemployment Median % of Pop 25+ with % of Pop 25+ with Population (In Thousands) Personal Income Rate Age High School Degree Bachelor's Degree 2013 13,341 $ 1,014,023 $ 76,008 3.4% 45.8 96.2% 73.8%
2014 13,347 1,006,738 75,428 3.2% 45.9 94.8% 72.7%
2015 13,566 968,617 71,400 2.6% 46.1 94.4% 69.9%
2016 13,467 958,308 71,159 2.0% 45.9 94.5% 71.1%
2017 13,272 966,580 72,828 2.2% 46.7 95.3% 71.7%
2018 13,352 1,024,823 76,754 2.2% 46.6 96.9% 73.4%
2019 13,087 1,019,187 77,877 2.3% 48.0 97.8% 75.6%
2020 12,961 1,062,978 82,013 4.1% 46.9 97.8% 78.1%
2021 12,257 957,019 78,079 3.1% 45.4 96.9% 78.2%
2022 12,206 966,035 79,144 2.4% 45.6 97.6% 80.8%
Notes and Data Sources:

Population: California State Department of Finance. Unemployment Data: California Employment Development Department 2000-2009 Income, Age, and Education Data: ESRI - Demographic Estimates are based on the last available Census. Projections are developed by incorporating all of the prior census data released to
date. Demographic Data is totaled from Census Block Groups that overlap the City's boundaries 2010 and later - Income, Age and Education Data - US Census Bureau, most recent American Community Survey (unaudited)
Calendar
Demographic and Economic Statistics
Year
105
PAGE 189 of 589







  

 

















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PAGE 190 of 589
Function 2023 2022 2021 2020 2019
Administration 9.50 9.50 9.50 9.50 9.50
Community Development 13.50 10.50 10.50 9.50 9.00
Police 40.00 40.00 40.00 40.00 37.50
Fire 21.00 21.00 21.00 21.00 23.00
Parks and Public Works 16.00 16.50 16.50 20.02 20.02
Recreation 16.61 12.70 16.48 21.17 21.17
Library 17.39 18.54 18.69 18.39 18.39
Total 134.00 128.74 132.67 139.58 138.58
Function 2018 2017 2016 2015 2014
Administration 8.25 5.83 5.89 5.50 6.40
Community Development 7.92 6.92 7.77 6.77 6.00
Police 37.50 37.40 32.43 33.78 36.10
Fire 23.00 20.10 20.60 20.90 20.65
Parks and Public Works 20.02 19.19 17.21 17.21 19.09
Recreation 21.90 21.89 19.85 22.64 21.34
Library 18.34 18.29 18.34 17.44 16.87
Old Mill - - 0.10 - 0.19
Total 136.93 129.62 122.09 124.34 126.64
Note:

A full-time employee is equivalent to 2,080 hours per year.

Source: City Finance Department
Fiscal Year Ended June 30,
Fiscal Year Ended June 30,
Full-Time Equivalent City Employees
by Function
107
PAGE 191 of 589
2023 2022 2021 2020 2019
Police:(in fiscal year) (1)
Physical arrests 174 189 187 254 173
Fire: (in fiscal year) (2)
Number of incident calls (6) 2,226 1,882 1,592 1,869 1,665 Inspections (7) 974 842 322 249 439
Public works: (in fiscal year) (3)
Street resurfacing (lane miles) 9.3 10.8 9.7 5.6 7.9
Parks and recreation/Library:(in fiscal year)(4)
Number of programs offered 609 511 318 374 511
Total program participants 32,065 25,274 10,392 N/A N/A Community development: (in fiscal year)(5)
Building permits issued 905 966 N/A N/A 754
2018 2017 2016 2015 2014
Police: (1)
Physical arrests 185 173 257 433 533
Fire: (2)
Number of incident calls 2,007 2,018 1,742 1,553 1,433
Inspections N/A N/A N/A N/A 306
Public works: (3)
Street resurfacing (lane miles) 8.5 - N/A N/A N/A
Parks and recreation/Library:(in fiscal year) (4)
Number of programs offered 418 495 540 579 566
Total program participants N/A N/A N/A N/A N/A
Community development: (in fiscal year) (5)
Building permits issued N/A N/A N/A N/A N/A
Sources:
(1) San Marino Police Department
(2) San Marino Fire Department
(3) City Public Works Department
(4) City Community Services Department
(5) City Community Development Department
Notes:
(6) In 2018, incidents outside of San Marino accounted for greater than 50% of all EMS responses.

The Fire Department negotiated with our Verdugo Fire Communication Center partners to reduce the response area of RA91 outside of San Marino, improving the availability of the ambulance for San Marino residents.
(7) Includes brush inspections which started in FYE 6/30/19 N/A - Information not available.

Indicators are not available for the general government function.

Function
Fiscal Year Ended June 30,
Function
Fiscal Year Ended June 30,
Operating Indicators by Function
Last Ten Fiscal Years
108
PAGE 192 of 589
2023 2022 2021 2020 2019 2018 2017 2016 2015 2014
Public safety
Police:

Station 1 1 1 1 1 1 1 1 1 1
Fire:

Station 1 1 1 1 1 1 1 1 1 1

Highways and streets
Lane miles 120 120 120 120 120 120 120 120 120 120
Sidewalk miles 100 100 100 100 100 100 100 100 100 100
Streetlights (approximate) 2,300 2,300 2,300 2,300 2,300 2,300 2,300 2,300 2,300 2,300 Signalized Intersections 15 15 15 15 15 15 15 15 15 15
Culture and recreation
Libraries 1 1 1 1 1 1 1 1 1 1
Community Centers 1 - - - - - - - - -
Parks 1 1 1 1 1 1 1 1 1 1
Sewer
Sewer Connction Lines (miles) 51 51 51 51 51 51 51 51 51 51 Drainage Inlets 376 376 376 376 376 376 376 376 376 376 Sewer Manholes 1,251 1,251 1,251 1,251 1,251 1,251 1,251 1,251 1,251 1,251 Source:

City Finance Department
Last Ten Fiscal Years
Function
Fiscal Year Ended June 30
Capital Asset Statistics by Function
109
PAGE 193 of 589

CITY OF SAN MARINO
Annual Comprehensive Financial Report
For the Fiscal Year Ended June 30, 2023
110
PAGE 194 of 589
Attachment 2:

Auditor's Communication Letter (SAS 114)
for the Fiscal Year Ended June 30, 2023
PAGE 195 of 589

THIS PAGE LEFT BLANK INTENTIONALLY
PAGE 196 of 589

1611 E. Fourth Street, Suite 200
Santa Ana, CA 92701
(714) 569-1000
203 N. Brea Blvd, Suite 203
Brea, CA 92821
(714) 672-0022
21 Waterway Avenue, Suite 30089
The Woodlands, TX 77380
(936) 828-4587
2151 River Plaza Dr., Suite 150
Sacramento, CA 95833
(916) 503-9691
24422 Avenida de la Carlota, Suite 275
Laguna Hills, CA 92653
(949) 829-8299
www.lslcpas.com
October 27, 2023
To the Honorable Mayor and Members of the City Council
City of San Marino, California
We have audited the financial statements of the governmental activities, each major fund and the aggregate remaining fund information of the City of San Marino, California (the “City”) for the year ended June 30, 2023.

Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards and Government Auditing Standards, as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our letter to you dated April 25, 2023. Professional standards also require that we communicate to you the following information related to our audit.

Significant Audit Matters
Qualitative Aspects of Accounting Practices
Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the City are described in Note 1 to the financial statements. As described in Note 1, the City changed accounting policies related to public-private and public-public partnerships and availability payment arrangements, subscription-based information technology arrangements, accounting changes and error corrections–an amendment of GASB Statement No. 62, and compensated absences by adopting Statement of Governmental Accounting Standards (GASB Statement) Nos. 94, 96, 100 and 101, in fiscal year ended June 30, 2023. Accordingly, the cumulative effect of the accounting change as of the beginning of the year is reported in the Statement of Activities. We noted no transactions entered into by the City during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period.

Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s knowledge and experience about past and current events and assumptions about future events.

Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the City’s financial statements were:

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

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

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

PAGE 197 of 589
To the Honorable Mayor and Members of the City Council
City of San Marino, California
Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management. We are pleased to report that no such misstatements were identified during the course of our audit.

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

Management Representations
We have requested certain representations from management that are included in the management representation letter dated October 27, 2023.

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

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

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

We were engaged to report on the combining and the individual fund statements and schedules which accompany the financial statements but are not RSI. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves.

We were not engaged to report on other information included in the annual report which is comprised of the introductory and statistical sections, which accompany the financial statements but are not RSI. Such information has not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on it.

PAGE 198 of 589
To the Honorable Mayor and Members of the City Council
City of San Marino, California
Future GASB Pronouncements
The following Governmental Accounting Standards Board (GASB) pronouncements will be effective for the following fiscal years’ audits and should be reviewed for proper implementation by management:

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

Future Projects
Comprehensive Project, Financial Reporting Model.

Comprehensive Project, Revenue and Expense Recognition.

Major Project, Going Concern Uncertainties and Severe Financial Stress.

Major Project, Infrastructure Assets.

Practice Issue, Classification of Nonfinancial Assets.

Practice Issue, Risks and Uncertainties Disclosures.

Pre-Agenda Research Activities, Subsequent Events.

Restriction on Use
This information 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,
Brea, California
PAGE 199 of 589
Attachment 3:

Auditor's Report on Internal Controls for
the Fiscal Year Ended June 30, 2023
PAGE 200 of 589

THIS PAGE LEFT BLANK INTENTIONALLY
PAGE 201 of 589

1611 E. Fourth Street, Suite 200
Santa Ana, CA 92701
(714) 569-1000
203 N. Brea Blvd, Suite 203
Brea, CA 92821
(714) 672-0022
21 Waterway Avenue, Suite 30089
The Woodlands, TX 77380
(936) 828-4587
2151 River Plaza Dr., Suite 150
Sacramento, CA 95833
(916) 503-9691
24422 Avenida de la Carlota, Suite 275
Laguna Hills, CA 92653
(949) 829-8299
www.lslcpas.com
INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON

COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN

ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
To the Honorable Mayor and Members of the City Council
City of San Marino, 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, each major fund, and the aggregate remaining fund information of the City of San Marino, California (the “City”), as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated October 27, 2023.

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

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

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

Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements.

However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

PAGE 202 of 589
To the Honorable Mayor and Members of the City Council
City of San Marino, California
Purpose of This Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’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 City’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Brea, California
October 27, 2023
PAGE 203 of 589
TO: Mayor and City Council
FROM: Philippe Eskandar, City Manager
BY: Paul Chung, Finance Director
DATE: December 13, 2023
SUBJECT: APPROVAL OF CONTRACT FOR IT

CONSULTING/MANAGEMENT SERVICES WITH SDI

PRESENCE, LLC

STRATEGIC PLAN CRITICAL SUCCESS FACTORS
Efficient, Responsive, and Effective City Services
Fiscally Responsible and Transparent City Government

BACKGROUND
The City has utilized Intelesys for Information Technology Consulting/Management Services for the past five plus years. During this time, Intelesys has been a great partner, providing 24 hour IT support, improved the City’s outdated servers, enhanced and protected the City’s network and completed various IT related CIP projects, which are highlighted below:
• Citywide Voice Over Internet Protocol (VOIP) phone system • Upgraded the Record Management System (RMS) and Computer-Aided Dispatch (CAD) system for Police Department (PD) vehicles • Installed In Car Video system Watchguard and Mobile Data Center (MDC) for PD vehicles
• Implemented E-Citation Writers for PD
• Installed 36 Public Library Computers
• Replaced over 70 staff PC’s
• Upgraded and installed 4 City servers
• Installed a new server and internet connections at San Marino Community Center
• Upgraded the City’s Wi-Fi system
Steve Talt, Mayor
Steven W. Huang, DDS, Vice Mayor
Tony Chou, Council Member
Calvin Lo, Council Member
Gretchen Shepherd Romey, Council Member
PAGE 204 of 589
As Intelesys’s contract is set to expire on January 31, 2024, a Request for Proposal (RFP) (Attachment 1) was posted on Planetbids on October 3, 2023.

Staff also emailed the RFP to 15 various IT Consulting/Management companies to reach as many companies as possible to gain quality proposals.

DISCUSSION
The bids for proposal were closed on October 25, 2023 and the City received 12 proposals. Of the 12 submitted proposals, five firms were invited to be interviewed with the City’s IT evaluation committee. The evaluation committee consisted of two Commanders from PD, one Fire Captain, the Finance Director, the Accounting Manager/Controller and the IT Manager from the City of San Dimas.

On November 8, 2023, the IT evaluation committee met with the five finalists. The evaluation committee evaluated based on the vendors’ background and experience, description of services, project schedule, and cost proposal. Listed below are the proposed three-year costs that were submitted:

Intelesys $547,459
Acorn Technology Services $551,205
Infinity Technologies $551,806
SDI Presence, LLC $580,640
NetXperts $585,962
After the interviews were performed, the committee unanimously agreed that SDI Presence, LLC (SDI) had the best combination of price, service, and their overall professional expertise.

SDI is an IT Consultancy and Managed Services firm with over 25 years helping public sector clients enhance their use of technology. SDI’s West Coast Division has worked with more than 190 local government agencies, completing IT and Network Assessments, Geographic Information System (GIS), Computer Aid Dispatch (CAD) Management, IT Service Level Assessments, Policy and Procurement Development, Project Management, Technology Procurement and Selection, and Implementation Support Services. They also have extensive experience with public safety software and systems. They have contracted with the cities of Pasadena, Arcadia, Alhambra, West Covina, La Verne, Glendora, Laguna Beach, Los Alamitos, Burbank, and Glendale.

If an agreement is approved, SDI’s services would commence immediately upon receiving notification to proceed. The term of the agreement shall be for three years with an option to extend the contract for two more years. IT PAGE 205 of 589
management services integration is a comprehensive and extensive process, integrating system softwares, network security and staff training. The timeline to switch over from Intelesys to SDI is expected to take six to eight weeks.

FISCAL IMPACT & PROCUREMENT REVIEW
The total costs for the three-year contract with SDI Presence, LLC for IT Consulting/Management Services is $580,640, which includes 24 hour IT support, 35 Hours per week On-site/Remote technician, annual security software, cloud backup storage, security training for employees, as well as on-going email security.

The fees are set forth in further detail as:

Year 1: $182,520 + $5,250 (One-Time Engagement and Transition Fee) Year 2: $191,644 (5% CPI increase)
Year 3: $201,226 (5% CPI increase)
Total Contract Amount: $580,640
The Adopted Budget for FY 2023-24 includes a sufficient appropriation for this proposed contract and no additional appropriations are requested at this time.

The Finance Director has reviewed this report and determined this is in accordance with the City’s procurement policy and award the agreement to SDI Presence, LLC.

LEGAL REVIEW
The City Attorney's office has reviewed and approved as to form.

RECOMMENDATION
Staff recommends that the City Council approve a three-year professional services agreement with an option to extend the contract for two more years with SDI Presence, LLC for Information Technology Consulting/Management Services. If the Council concurs with staff’s recommendation, an appropriate motion would be:
“I move to approve a three-year professional services agreement with an option to extend the contract for two more years with SDI Presence, LLC for Information Technology Consulting/Management Services and authorize the City Manager to exercise the future option under the contract in his discretion, subject to satisfactory performance and Council budget appropriation.” PAGE 206 of 589

ATTACHMENTS

1. Request For Proposal (RFP) for IT Consulting/Management Services

2. SDI Presence, LLC – Proposal

3. Professional Services Agreement with SDI Presence, LLC PAGE 207 of 589
1 DATE: October 3, 2023
TO: IT Firms Interested in Responding to a Request for Proposals FROM: Paul Chung, Finance Director
SUBJECT: Notification of Interest
The City of San Marino is soliciting proposals from experienced and qualified firms to provide the City with information technology management services in the area of network analysis and technical support (Non-Public Safety & Public Safety which includes Police and Fire departments), systems support, computer operations support, PC desktop technical support, software integration support, Help Desk support, project manager for software implementation, and I.T. policy and procedure development.

Enclosed for your consideration is a Request for Proposal(RFP).

To be considered for this engagement, your firm must meet the qualifications and satisfy the requirements set forth in the RFP. Completed proposals must be received by 5:00 pm on October 25, 2023, and must be submitted to:

Paul Chung
Finance Director
City of San Marino
2200 Huntington Drive
San Marino, CA 91108
[email protected]
All questions and correspondence should be directed to me at the above address or by e-mail at [email protected]. All questions submitted by 5:00 pm on October 18, 2023, will be answered in writing, and copies will be sent or e-mailed to all firms responding with a Notification of Interest.

PAGE 208 of 589
2 REQUEST FOR PROPOSALS
The Finance Department is requesting Proposals
for:

Information Technology Management Services
RELEASE DATE: October 3, 2023
INQUIRY DEADLINE: 5PM, October 18, 2023
RESPONSE DUE: 5PM, October 25, 2023
PAGE 209 of 589
3 CITY OF SAN MARINO REQUEST FOR PROPOSALS
I. INTRODUCTION
A. General Information
The City of San Marino is soliciting proposals from experienced and qualified firms to provide the City with information technology management services in the area of network analysis and technical support (Non-Public Safety & Public Safety which includes Police and Fire departments), systems support, computer operations support, PC desktop technical support, software integration support, Help Desk support, project manager for software implementation, and I.T. policy and procedure development.

There is no expressed or implied obligation for the City of San Marino to reimburse responding firms for any expenses incurred in preparing proposals in response to this request.

Any inquiries concerning the request for proposals should be addressed to Paul Chung, Finance Director.

To be considered, electronic copies of a proposal must be received by Paul Chung by 5:00 pm on October 25, 2023. In lieu of physical copies, electronic copies will be accepted to [email protected]; however, the file must be in PDF format and errors in electronic transmission will not be accepted as a reason for late submission. The City of San Marino reserves the right to reject any or all proposals submitted. Proposals submitted will be evaluated by a Committee consisting of Finance Director, Accounting Manager/Controller, Police Staff, Fire Division Chief, and IT Manager. (Committee members can change depending on availability and schedule)
During the evaluation process, the Committee and the City of San Marino reserve the right, where it may serve the City of San Marino’s best interest, to request additional information or clarifications from proposers, or to allow corrections of errors or omissions. Firms selected as finalists may be requested to make oral presentations as part of the evaluation process.

The City of San Marino reserves the right to retain all proposals submitted and to use any ideas in a proposal regardless of whether that proposal is PAGE 210 of 589
4 selected. Submission of a proposal indicates acceptance by the firm of the conditions contained in this request for proposals as well as acceptance of the terms of the City’s Standard Professional Services Agreement, unless clearly and specifically noted in the proposal submitted and confirmed in the contract between the City of San Marino and the firm selected.

It is anticipated the selection of the firm will be completed and approved by City Council on December 13, 2023.

B. Term of Engagement
A three-year contract is contemplated, subject to the annual review and recommendation of the Committee, the satisfactory negotiation of terms (including a price acceptable to both the City of San Marino and the selected firm), the concurrence of the City Council, and the annual availability of an appropriation.

II. DESCRIPTION OF THE GOVERNMENT
A. Name of Contact Person
The principal contact with the City of San Marino will be Paul Chung, Finance Director, who will coordinate the RFP process.

B. Background Information
The City of San Marino is located in San Gabriel Valley and is home to approximately 14,000 residents. The City is known for uniquely residential - singlefamily homes on large lots surrounded by beautiful gardens, with wide streets and well-maintained parkways. The City is also the home of The Huntington Library, Art Museum, and Botanical Garden.

The City operations are managed by the City Manager. The City Manager manages a staff of six department leaders and their respective staffs of approximately 112 fulltime and 29 part-time employees located in five facilities across San Marino. The City comprises of 8 departments: City Manager’s Office, Finance, Human Resources, Community Development, Parks & Public Works, Police, Fire, Community Services (Recreation and Library divisions). The following are the addresses to the facilities:
• City Hall (City Manager’s Office, Finance, Human Resources, Community Development, Police, Fire, and Parks & Public Works) - 2200 Huntington Drive, San Marino, CA 91108
• Community Services (Crowell Library) - 1890 Huntington Drive, San Marino, CA 91108
• Community Services (Recreation at Stoneman) - 1560 Pasqualito Drive, San Marino, CA 91108
PAGE 211 of 589
5 • Community Services (Recreation at San Marino Center) - 1800 Huntington Drive, San Marino, CA 91108
• Lacy Park (Parks & Public Works) - 1485 Virginia Road, San Marino, CA 91108 The current IT firm providing managed services to the City provides off‐site 24/7 monitoring and patching. Information technology services are provided across 5 main locations throughout the City, and include essential and emergency response functions that require 24/7 service such as Police, Fire, and the Department of Public Works.

C. IT Background Information
The following are current ticket count per current IT vendor and percentage breakdown by category:
• Monthly average support ticket count – 180
o End user support – 65%
o Changes – 15%
o Security Mitigation – 11%
o System Errors – 8%
o Outages – 1%
The following are current network connections:
• City Hall (CH) – 150x150 Mbps
• Police Department (Hard wired to CH) – 60x35 Mbps
• Fire Department (Hard wired to CH) – Shared w/ CH
• Public Works (Hard wired to CH) – Shared w/ CH
• Community Development Department (Hard wired to CH) – Shared w/ CH • Library (VPN to CH) – 1x1 Gbps & 600x10 Mbps
• Recreation (VPN to CH) – 25x25 Mbps
• Lacy Park (VPN to CH) – 35x10 Mbps
• San Marino Community Center (VPN to CH) – 300x300 Mbps III. NATURE OF SERVICES REQUIRED
A. General
The City of San Marino is soliciting proposals from experienced and qualified firms to provide the City with information technology management services in the area of network analysis and technical support (Non-Public Safety & Public Safety which includes Police and Fire departments), systems support, computer operations support, PC desktop technical support, software integration support, Help Desk support, project manager for software implementation, and I.T. policy and procedure development.

PAGE 212 of 589
6 B. Scope of Work
The City of San Marino desires an information technology management services for ongoing generalized IT support for both Non-Public Safety & Public Safety. The scope of services is intended to ensure proper operation of the City’s networked computer system, equipment, and related network infrastructure. It is anticipated to include, but not be limited to the following:

1. IT SUPPORT
The City maintains over 186 Desktops, Laptops and Tablets in various locations throughout the City. The City is requiring the following IT support but not limited to:
• Inventory Control & Reporting
• Warranty Management
• Asset Tracking
• Patching and compliance for Operating Systems and Installed Applications • Mobile Device Management
• Mobile Data Computers for Police Department
• Cradle Points for Police Department
• Cellphone issues
• Mitel VOIP Telephone System
• AntiVirus & AntiMalware management and remediation
• Security Policy Management
• Remote Monitoring of hardware and software for errors, warnings, or non‐ compliance
• Installation and maintenance of UPS units

2. SERVER MANAGEMENT
The City currently hosts 6 physical and 36 virtual servers; most of these servers are located in the City Hall server room, with some servers located in off‐site locations.

Some servers are owned by third parties for applications running for specific clients and running specific programs.

3. NETWORK MAINTENANCE AND MANAGEMENT
The City has five facilities with a core switch located in City Hall. This network is mission critical and needs to be monitored 24/7/365. 24x7 Hour support is necessary and needs to be included in the proposal.

The scope of work includes, but is not limited to:
• Inventory Control & Reporting
• Warranty Management
PAGE 213 of 589
7 • Asset Tracking
• Patching and compliance for Operating Systems, appliance upgrades and all network equipment including firewalls, switching, routing and wireless infrastructure
• Security Policy Management
• Remote Monitoring of hardware for errors, warnings, or non‐compliance • Monthly change control reporting
• Monthly reporting on configuration backup

4. HELPDESK SUPPORT AND ON‐SITE SUPPORT
The City supports over 150 End Users, who use approximately 45 applications.

The vendor is expected to provide on‐site support in administering to the City’s IT needs. This includes end user support and training, department level systems and capital needs planning, and input into major system enhancements. Vendor will participate collaboratively with various departments to fulfill service needs, and will make recommendations for future purchasing and technology upgrades when advisable. Personnel providing services under this contract resulting from the RFP must be fully qualified to perform the required work. A designated engineer is preferred. All personnel on‐site and remote will be required to pass a criminal background check before performing any work in the Police Department.

Helpdesk Support Remote must include:
• Service Call Tracking
• Monthly reports on problems, issues, affected users, problem categories • Application & operating system helpdesk services
• Guidance and user support pertaining to proper use of City applications and systems
• Guidance and user support pertaining to proper response to security concerns such as websites, emails, and application behavior
• Construction of a knowledge base of Support Resolutions and Instructional How‐To articles. The platform housing this data, and the data within the platform shall be owned by the City.
• Support during Business Hours: Support during business hours must include on‐site support as well as phone or remote support as needed to meet the requirements below. Business Hours are Monday-Thursday from 7am until 5:00pm and Friday from 7am until 11am. City Holidays are excluded. • Support After Business Hours: Support during after business hours for Public Safety staff (Police, Public Works and Fire).
• Onsite location of at least 1 support person located within City’s IT office for “drop‐ in” support requests from users once a week.
o Onsite support staff available to assist in user training and orientation on the first day of any newly hired City Employee
PAGE 214 of 589
8 o Onsite support of City Hall Employees by 9am each morning o Onsite support for basic phone problems
o Onsite support to troubleshoot basic network issues with the use of the City’s remote monitoring system
o Onsite support should have a good understanding of all the Internet connections and providers
o Onsite support to rollout new computers/laptops
o Onsite support for reviewing cyber security logs
o Onsite support for reviewing current IT Management
systems (Switches, Network, Wi‐Fi)
o Onsite support for Police department specific IT needs o Onsite support for City Council presentation regarding IT specific projects during the annual budget process
• Meet with the Police Department once a month to review all outstanding IT projects and review status updates

5. CYBER SECURITY
The City has deployed a robust, multilayered approach to security‐focused technologies. The City would like to ensure that end‐user Cyber Security is distributed to end‐users at least once a year.
• Monitoring & Management of the existing DNS Security and content filtering system.
• Monitoring & Management of the existing Anti‐Malware System. • Monitoring & Management of the existing Next‐Gen Antivirus and Security system.
• Provide standard Antivirus software, and management of said software to all endpoint devices.
• Provide a Learning Management System for City’s employees, curate the trainings provided to end users

6. SPECIAL IT PROJECTS (BUDGETED PROJECTS)
The City expects the IT to support special one-off projects. (i.e. Server Room Improvements, Battery Back-up Replacement, Staff PC Replacement) C. Cost of Services
The City anticipates entering into a fixed monthly cost for services engagement, with a minimum term of one year; the City will also consider a multiple‐year term if advantageous to the City. Please provide a total monthly fee and associated breakdown by task. For the Help Desk/On Site Support Scope, please break down your proposed fee for each element separately (e.g. on‐ site support should be a stand‐alone item). Include any required software costs if applicable.

PAGE 215 of 589
9 While the City requests this contract be all inclusive, it recognizes that there any be instances where services may exceed those considered in a basic monthly scope of work. Please provide your firm’s opinion on what types of services might fall into this category, and provide appropriate pricing – examples could include: site visits outside of prescheduled visits; after hours, emergency response visits; additional discounts for multi‐year agreements; other special circumstances.

IV. TIME REQUIREMENTS
A. Proposal Calendar
The following is a list of key dates up to and including the date proposals are due to be submitted:

Request for proposals issued……………… October 3, 2023
Due date for written questions…………….October 18, 2023
Due date for proposals……………………. October 25, 2023
Oral Interview (Zoom)……………………. Week of October 30th (Date pending) Selected firm notified……………………….Week of November 6th
City Council Approval……………………...December 13, 2023 (Tentative Date) V. PROPOSAL REQUIREMENTS
A. Proposal Response is to Include:
• Scope of Work and Approach
• Services Offered
• Annual Contract Cost over 3 years
• Onboarding process and timeline
• Qualification and References
B. RPF Inquiries / Questions
Inquiries or questions concerning the request for proposals and the subject of the request for proposals must be made to by October 18, 2023:

Paul Chung, Finance Director
City of San Marino
[email protected]
C. Submission of Proposals
Proposers should send PDF versions of the completed proposal by October 25, 2023 to the following email address:

Paul Chung, Finance Director
City of San Marino
PAGE 216 of 589
10 [email protected]
VI. EVALUATION PROCEDURES
A. Committee
Proposals submitted will be evaluated by a Committee consisting of the Finance Director, Accounting Manager/Controller, Police Staff, Fire Division Chief, and IT Manager. (Committee members can change depending on availability and schedule) B. Review of Proposals
The Committee will use a point formula during the review process to score proposals. The Audit Committee will score each proposal by each of the criteria described in Section VI C below.

The City of San Marino reserves the right to retain all proposals submitted and use any idea in a proposal regardless of whether that proposal is selected.

C. Evaluation Criteria
Proposals will be evaluated using various sets of criteria. Firms meeting the mandatory criteria will have their proposals evaluated and scored for both technical qualifications and price. Please see Attachment 2 for the evaluation criteria detail.

D. Oral Interview (Conducted through Zoom) – Week of October 30th (Date pending) During the final phase of the evaluation process, the Committee may convene a panel to conduct oral presentations. Such presentations will provide firms with an opportunity to answer any questions the Committee may have on a firm’s proposal.

E. Final Selection
The selection of the audit firm will be made by the Committee and the outcome will be notified by the week of November 6th, with ratification by the City Council on December 13, 2023.

F. Right to Reject Proposals
Submission of a proposal indicates acceptance by the firm of the conditions contained in this request for proposals unless clearly and specifically noted in the proposal submitted and confirmed in the contract between the City of San Marino and the firm selected. The City of San Marino reserves the right without prejudice to reject any or all proposals.

PAGE 217 of 589
11 ATTACHMENT 1
CITY OF SAN MARINO’s STANDARD PROFESSIONAL SERVICES

AGREEMENT
PAGE 218 of 589
12 ATTACHMENT 2

EVALUATION SCORING SHEET
PAGE 219 of 589
11 ATTACHMENT 1
CITY OF SAN MARINO’s STANDARD PROFESSIONAL SERVICES

AGREEMENT
PAGE 220 of 589
i

CITY OF SAN MARINO

STANDARD PROFESSIONAL SERVICES AGREEMENT

TEMPLATE
(Current as of February 2, 2023)
The City Attorney has prepared this Standard Professional Services Agreement Template to streamline the negotiation and approval of contracts for professional services provided by outside companies or individuals (“Consultants”). This Template should not be used for purchasing goods, equipment, or software; public works projects; or professional services that include design professional services. “Design Professionals” are licensed architects, landscape architects, and professional land surveyors, and registered professional engineers. (See Cal.

Civ. Code § 2782.8.) Other templates may be available for these purposes.

To use the Template, first review Section 02.06.05 of the City Code (“Procurement of Goods, Services and Contracts for Public Projects”), a copy of which appears on the next page. Failure to comply with this Section may delay or nullify contract approval.

Second, contact the City Clerk to ensure you have the latest version of the Template.

Always begin with the latest version rather than editing an agreement created for another contract because the Template may be updated from time-to-time to incorporate changes needed to address changes in the law or to incorporate new ideas.

This will ensure you don’t omit any important updates or inadvertently include provisions that were approved only for use in that other contract. If you have any ideas for changes to the Template, please feel free to share them.

Third, complete the Template. The highlighted text and instructions show you what information is needed (e.g., the Consultant’s name, its contact information, the contract amount, the scope of services, and how and how much the Consultant will be paid).

Because the Scope of Services and Fee Schedule are the most variable terms from contract-to-contract, the Template includes them as separate Exhibits. You must provide the content of the Exhibits. When you are done, remove the highlighting, instructions, and these cover pages before releasing it to the Consultant.

You can also share a blank version of the Template with prospective Consultants (e.g., in RFPs and RFQs) to show them the terms the City expects Consultants to meet if selected. This might also make it less likely a Consultant will object to the City’s terms after selection. If you do this, do so only after removing all highlighting and cover pages and replacing the instructional notes with blanks.

Finally, not every provision of the Template will work for every contract. You or the Consultant might find changes are needed for practical reasons related to the services the City wants. The Consultant might also request changes for business reasons. This Template might also require modification for contracts that rely on state, federal, or PAGE 221 of 589
This is a reproduction of portions of the San Marino City Code.

Always refer to an official copy of the Code and check with the City Clerk regarding recent possible amendments to ensure you are working with the most current version. ii
other grant funding. Please consult with the City Attorney’s office regarding any proposed changes early in the process so we may respond in a timely manner.

PAGE 222 of 589
This is a reproduction of portions of the San Marino City Code.

Always refer to an official copy of the Code and check with the City Clerk regarding recent possible amendments to ensure you are working with the most current version. iii
San Marino City Code
Section 02.06.05

PROCUREMENT OF GOODS, SERVICES AND CONTRACTS FOR PUBLIC

PROJECTS
A. General Requirements:

1. Conformance With The City Budget: No procurement of goods, services or public projects, as defined in subsection C2 of this section, is authorized unless the person making the procurement for the city signs a statement prepared by the finance officer certifying that the proposed procurement conforms to the budget adopted by the city council.

2. Applicable Procedures: Procurements of goods and services, but excluding contracts for public projects shall conform to the procedures in this subsection A and subsection B of this section. Contracts for public projects shall conform to the procedures in this subsection A and subsection C of this section.

3. Execution Of Contracts For Public Projects And Professional Services: No contract for professional services or for a public project of thirty thousand dollars ($30,000.00) or more shall be executed unless previously approved by the city council and shall be executed only by the mayor or city manager. Contracts for public projects and professional services between five thousand dollars ($5,000.00) and thirty thousand dollars ($30,000.00) shall be executed and approved by the city manager.

4. Change Orders: Change orders may be approved only by a person authorized to originally procure the goods, services or public projects, provided that the price, as amended by the change order, does not exceed that person's authority under subsection A3 or B1 of this section.

5. Prohibition Against Splitting Procurements: No procurement shall be split or separated into smaller procurements for the purpose of evading the limitations of subsection B of this section.

6. Bonds And Insurance: The finance officer may require liability and other insurance and performance and payment bonds in such amounts as the finance officer deems reasonably necessary to protect the city's interests. Bond and insurance requirements, if any, shall be included in the procurement documents.

7. Procurement With State Or Federal Funds: All procurements of goods, services and public projects for which payment is to be made, in whole or in part, with federal or state funds, regardless of the estimated value, shall be in accordance with the procedures contained in this section and in accordance with applicable federal or state regulations, whichever are more restrictive.

PAGE 223 of 589
This is a reproduction of portions of the San Marino City Code.

Always refer to an official copy of the Code and check with the City Clerk regarding recent possible amendments to ensure you are working with the most current version. iv

8. Emergency Procurements: The city council delegates to the city manager the power to declare a public emergency, as defined in Public Contract Code section 1102, to immediately take all actions directly required by the emergency, to procure needed goods, services and public projects and to contract for public projects without informal or formal bidding. The work may be done by City forces by force account, by negotiated contract or purchase order, or by a combination thereof. At the next meeting of the City Council occurring not later than fourteen (14) days after the emergency action, the City Manager shall provide a full report on the emergency, including an explanation of why the emergency did not permit a delay that would result from a competitive solicitation of bids, and why the City Manager's actions were necessary to respond to the emergency. At that meeting, and each meeting thereafter until the emergency action is terminated, the City Council shall determine by a four-fifths (4/5) vote that there is a need to continue the remedial action and whether that work should continue without the benefit of informal or formal bidding.

B. Procurement Of Goods And Services Other Than Public Projects: Procurement of goods and services, but excluding contracts for public projects, shall comply with the following procedures:

1. Persons Authorized To Procure Goods And Services: The Assistant City Manager and each Department Director shall designate in writing those persons who are authorized to procure goods and services for his or her department in the following amounts: a) up to and including one thousand dollars ($1,000.00); b) up to and including five thousand dollars ($5,000.00); and c) up to and including thirty thousand dollars ($30,000.00). No person authorized by the Assistant City Manager or a Department Director to procure goods and services may complete a procurement until the Finance Officer has received written notification of the authorization. The authorization shall include the manual signature of the authorized person. Only the Assistant City Manager and Department Directors may procure goods and services for their respective departments that exceed thirty thousand dollars ($30,000.00).

2. General Requirements:
a. Purchase Orders Not Required: Purchase orders are not required, but will be provided at the request of the vendor or at the direction of the Assistant City Manager or Department Director.
b. Waiver Of Bidding: Bidding required by this subsection B for procurements of thirty thousand dollars ($30,000.00) or less may only be dispensed with when the Assistant City Manager or the Director of the department undertaking the procurement determines in writing that the goods or services are only available from one (1) source or that the best interests of the City are served by dispensing with competitive bids. Bidding required by this subsection B for procurements over thirty thousand dollars ($30,000.00) may only be PAGE 224 of 589
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dispensed with when the Finance Officer determines in writing that the goods or services are only available from one (1) source or that the best interests of the City are served by dispensing with competitive bids.

3. Procurements Of One Thousand Dollars Or Less: No price comparison is required. The procurement shall be effected by purchase order, if requested by the vendor, or by City credit card, petty cash, or check. Procurements of the same goods or services from the same vendor during a fiscal year shall not exceed one thousand dollars ($1,000.00) unless the procedures are followed that apply to the aggregate dollar amount of the procurements, including approval by an individual authorized to make the procurement in that amount.

4. Procurements Greater Than One Thousand Dollars And Up To And Including Thirty Thousand Dollars: Three (3) written bids shall be obtained. With the exception of contracts for services, the award shall be made to the lowest responsible bidder. Contracts for services shall be awarded to the firm or individual that, in the opinion of the person in charge of the procurement, offers the best combination of quality and price. Procurements of the same goods or services need not be rebid more often than once each fiscal year, but the total dollar amount of the same goods or services procured from the same vendor during a fiscal year shall not exceed five thousand dollars ($5,000.00) unless the appropriate procedures for a purchase in the aggregate dollar amount are followed, including approval by an individual authorized to make the procurement in that amount. The vendor shall send an invoice to the City.

5. Procurements Greater Than Thirty Thousand Dollars: Written notices inviting bids for procurement of goods and written requests for proposals to procure services shall be provided to at least three (3) vendors and to all vendors requesting to receive notices inviting bids and requests for proposals for the types of services or goods to be procured. With the exception of contracts for services, the award shall be made to the lowest responsible bidder. Contracts for services shall be awarded to the firm or individual that, in the opinion of the person in charge of the procurement, offers the best combination of quality and price. The award shall be made by the City Council. (Ord. 0-07-1192, 12-12- 2007)

6. Cooperative Purchasing: Purchases of supplies, materials and equipment and sales of personal property made under a cooperative purchasing program utilizing purchasing agreements or bids received by the County, State, or other public agency are exempt from the requirements of this subsection. (Ord. 0-17- 1322, 3-31-2017)
C. Public Projects:

1. Applicability Of The Uniform Public Construction Cost Accounting Act: Public projects, as defined in subsection C2 of this section, shall be awarded in PAGE 225 of 589
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accordance with the uniform public construction cost accounting act1, and in compliance with the provisions of this subsection C.

2. Definitions: The following terms are defined as set forth below:

FACILITY: Any plant, building, structure, ground facility, utility system, real property, streets and highways, or other public work improvement.

PUBLIC PROJECT:
a. Any of the following:
(1) Construction, reconstruction, erection, alteration, renovation, improvement, demolition, or repair work involving any publicly owned, leased or operated facility;
(2) Painting or repainting of any publicly owned, leased or operated facility. b. "Public project" does not include maintenance work. For purposes of this subsection C, "maintenance work" includes all of the following:
(1) Routine, recurring, and usual work for the preservation or protection of any publicly owned or publicly operated facility for its intended purposes; (2) Minor repainting;
(3) Resurfacing of streets and highways at less than one inch (1"); (4) Landscape maintenance, including mowing, watering, trimming, pruning, planting, replacement of plants, and servicing of irrigation and sprinkler systems;
(5) Work performed to keep, operate and maintain publicly owned water, power or waste disposal systems, including, but not limited to, dams, reservoirs, power plants, and electrical transmission lines of two hundred thirty thousand (230,000) volts and higher.

3. General Requirements:
a. Designation Of Projects: The assistant city manager shall review all proposed public projects and shall classify each project as follows:
(1) Projects of thirty thousand dollars ($30,000.00) or less, which may be performed with the city's own forces by force account, by negotiated contract, or by purchase order.

1 Pub.Con.C. §22000 et seq.

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(2) Projects between thirty thousand dollars ($30,000.00) and one hundred twenty five thousand dollars ($125,000.00), which may be let by contract after informal bidding.
(3) Projects of one hundred twenty five thousand dollars ($125,000.00) or more, which must be let by contract after formal bidding. b. Prohibition Against Splitting Projects: Projects shall not be split or separated to avoid any of the bidding requirements contained herein or in Public Contract Code section 22000 et seq.

4. Procedures For Public Projects Of Thirty Thousand Dollars Or Less: Contracts for public projects of thirty thousand dollars ($30,000.00) or less may be approved and entered into for a department by the person or persons designated by the assistant city manager or the department director to procure goods and services pursuant to subsection B of this section.

5. Informal Bidding Procedures For Public Projects From Thirty Thousand Dollars To And Including One Hundred Twenty Five Thousand Dollars:
a. List Of Consultants: The assistant city manager shall develop a list of qualified contractors eligible to submit bids for public projects between thirty thousand dollars ($30,000.00) and up to one hundred twenty five thousand dollars ($125,000.00). The list shall be organized in accordance with the license classifications of the contractors state license board. Any licensed California contractor may be added to the list at any time by filing with the assistant city manager a completed application on a form provided by the city. b. Plans, Specifications And Working Details: The person in charge of the procurement shall cause to be prepared plans, specifications, and working details necessary to enable a qualified contractor to perform the required work.
c. Notice Inviting Bids: The person in charge of the procurement shall mail the notice inviting bids to all contractors on the list of qualified contractors for the category of work being bid, and to all construction trade journals as specified by the California uniform cost accounting commission pursuant to Public Contract Code section 22036. The notice inviting bids shall describe the project in general terms and how to obtain more detailed information about the project, and shall state the time and place for the submission of bids. The notices inviting bids shall be mailed no less than ten (10) calendar days before bids are due.
d. Receipt Of Bids: At the time specified in the notice inviting bids, the person in charge of the procurement shall open all bids timely received and shall recommend award of the contract to the lowest responsible bidder. If two (2) PAGE 227 of 589
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or more responsive bids are the same and lowest, the award of the contract shall be determined by drawing lots. If no bids are received, bids may be again solicited, or the public project may be performed by city forces, or the city may enter into a negotiated contract with any qualified person or firm. e. Bids Over One Hundred Twenty Five Thousand Dollars: If all bids received are in excess of one hundred twenty five thousand dollars ($125,000.00), the city council may, by adoption of a resolution by a four-fifths (4/5) vote, award the contract, at one hundred thirty seven thousand five hundred dollars ($137,500.00) or less, to the lowest responsible bidder, if the city council determines that the city's cost estimate was reasonable.

6. Procedures For Public Projects Exceeding One Hundred Twenty Five Thousand Dollars: Contracts for public projects estimated by the assistant city manager to exceed one hundred twenty five thousand dollars ($125,000.00) shall be awarded pursuant to formal bidding in accordance with the provisions of Public Contract Code sections 22037 and 22038. If a contract is awarded, it shall be awarded to the lowest responsible bidder. If two (2) or more bids are the same and the lowest, the city council may accept either bid. If no bids are received, the public project may be performed by the city's own forces by force account, or by negotiated contract, without further compliance with the uniform public construction cost accounting act or this code. (Ord. 0-07-1192, 12-12-2007) PAGE 228 of 589
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PROFESSIONAL SERVICES AGREEMENT
between
The City of San Marino
2200 Huntington Drive
San Marino, CA 91108
&
CONSULTANT’S NAME
CONSULTANT’S ADDRESS
CONSULTANT’S ADDRESS
This Professional Service Agreement (“the Agreement”) is made as of INSERT DATE (the “Effective Date”), by and between CONSULTANT’S NAME (“Consultant”), and the City of San Marino (“City”), a California municipal corporation, (collectively, “the Parties”).

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RECITALS
A. City desires certain professional services as specified in this Agreement.

B. Consultant represents that it is qualified and able to provide City with such services.

NOW THEREFORE, in consideration of the Parties’ performance of the promises, covenants, and conditions stated herein, the Parties hereto agree as follows:

AGREEMENT

1.0 Scope of Services

1.1. Consultant shall provide those services (“Services”) set forth in the attached Exhibit A.

1.2. Consultant shall perform all Services under this Agreement in accordance with the standard of care generally exercised by like professionals under similar circumstances and in a manner reasonably satisfactory to City.

1.3. In performing this Agreement, Consultant shall comply with all applicable provisions of federal, state, and local laws, ordinances, codes, and regulations.

1.4. Consultant shall not be compensated for any work performed unless it is specified in Exhibit A or City authorizes such work in advance and in writing. Any work so authorized by City shall become part of the Services for purposes of this Agreement.

2.0 Term
The term of this Agreement shall commence as of the Effective Date and shall continue through INSERT END DATE unless sooner terminated as provided in Section

5.0 of this Agreement.

3.0 Consultant’s Compensation
City will pay Consultant in accordance with the fee schedule set forth in Exhibit B but in no event will the City pay more than $INSERT AMOUNT-NOT-TO-EXCEED FOR THIS CONTRACT. Any additional work authorized by the City pursuant to Section 1.4 will be compensated in accordance with the fee schedule set forth in Exhibit B, unless otherwise approved by City in writing. Pursuant to Section 02.06.05 of the San Marino City Code, this Agreement shall not be effective unless previously approved by the City Council if it is for professional services of greater than thirty thousand dollars ($30,000.00).

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4.0 Method of Payment

4.1. Consultant shall submit to City monthly invoices for all services rendered pursuant to this Agreement. Such invoices shall be submitted within 15 days of the end of the month during which the services were rendered and shall describe in detail the services rendered during the period, the days worked, number of hours worked, the hourly rates charged, and the services performed for each day in the period. City will pay Consultant all undisputed charges within 30 days of receiving Consultant’s invoice.

City will not withhold any applicable federal or state payroll and other required taxes, or other required or authorized deductions from payments made to Consultant.

4.2. Upon 24-hour notice from City, Consultant shall allow City or City’s agents or representatives to inspect at Consultant’s offices during reasonable business hours all records, invoices, time cards, cost control sheets and other records maintained by Consultant in connection with this Agreement. City’s rights under this Section 4.2 shall survive for two years following the expiration or earlier termination of this Agreement.

5.0 Termination

5.1. City may terminate this Agreement at any time, at will, for any reason or no reason, after giving written notice to Consultant at least thirty (30) calendar days before the termination is to be effective.

5.2. Consultant may terminate this Agreement for cause in the event City fails to cure a default under this Agreement within thirty (30) days after Consultant has given City notice of such default.

5.3. Upon termination of this Agreement, Consultant shall cease all work under this Agreement and deliver to City all materials, reports, documents, notes or other written materials compiled through the last working day this Agreement is in effect. City shall pay Consultant for all services satisfactorily rendered through the last working day this Agreement is in effect; provided that in no event, including but not limited to termination, shall Consultant be entitled to receive more than the maximum compensation set forth in Section 3. Neither party shall have any other claim against the other party by reason of termination pursuant to this Section 5.0.

6.0 Reports, Information, and Work Product

6.1. Consultant shall deliver to City: (1) any reports on the status of the Services upon City’s request and in such time and in such form as City may require; and (2) all material furnished to Consultant by City upon City’s request and/or upon the expiration or termination of this Agreement.

6.2. Unless the Parties agree in writing, all draft and final reports, documents, and other written material, and any and all images, ideas, concepts, designs including without limitation any website designs, source code, object code, electronic data and files, and/or other media whatsoever created or developed by Consultant in the performance of this Agreement (collectively, “Work Product”) shall be considered to be PAGE 231 of 589
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“works made for hire” for the benefit of City. All Work Product and any and all intellectual property rights arising from their creation, including, but not limited to, all copyrights and other proprietary rights, shall be and remain the property of City without restriction or limitation upon their use, duplication or dissemination by City upon final payment being made. Consultant shall not obtain or attempt to obtain copyright protection as to any of the Work Product. Consultant hereby assigns to City all rights of ownership to the Work Product, including but not limited to any and all related intellectual property and proprietary rights that are not otherwise vested in the City pursuant to this paragraph.

6.3. Consultant warrants and represents that it has secured all necessary licenses, consents or approvals necessary to the production of the Work Product, and that upon final payment, City shall have full legal title to the Work Product, and full legal authority and the right to use and reproduce the Work Product for any purpose.

Consultant shall defend, indemnify, and hold City, and its elected officials, officers, employees, servants, attorneys, designated volunteers, and agents serving as independent contractors in the role of city officials, harmless from any loss, claim, or liability in any way related to a claim that any use by the City of any of the Work Product violates federal, state, or local laws, or any contractual provisions, or any rights or laws relating to trade names, licenses, franchises, copyrights, patents, or other means of protecting intellectual property rights, and/or interests in products, ideas, or inventions.

Consultant shall bear all costs arising from the use of patented, copyrighted, trade secret, or trademarked documents, materials, equipment, devices, or processes in connection with its provision of the Work Product produced under this Agreement. If any use by city of any of the Work Product or other deliverables is held to constitute an infringement and the use of any of the same is enjoined, Consultant, at its expense, shall: (a) secure for City the right to continue using such Work Product and/or other deliverables by suspension of any injunction, or by procuring a license or licenses for City; or (b) modify the Work Product and other deliverables so that they become noninfringing while remaining in compliance with the requirements of this Agreement.

6.4. Consultant’s obligations under this Section 6.0 shall survive the expiration or termination of this Agreement.

7.0 Party Representatives

7.1. City’s representative for purposes of this Agreement is the City Manager or the person designated in writing by the City Manager. The City Manager’s designee may exercise the authority of the City Manager provided in this Agreement excepting approval of any expenditure that would exceed a total compensation allowed under the Agreement.

7.2. INSERT NAME OF CONSULTANT’S REPRESENTATIVE is Consultant’s representative for purposes of this Agreement.

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8.0 Notices

8.1. All notices permitted or required under this Agreement shall be deemed made when personally delivered or when mailed 48 hours after deposit in the United States Mail, first class postage prepaid and addressed to the party at the following addresses:

To City: City of San Marino
2200 Huntington Drive
San Marino, California 91108
Attn: City Manager
To Consultant: CONSULTANT’S NAME
CONSULTANT’S ADDRESS
CONSULTANT’S ADDRESS
Attn: ______________

8.2. Actual notice shall be deemed adequate notice on the date actual notice occurred, regardless of the method of service.

9.0 Independent Consultant

9.1. Consultant is an independent contractor and not an employee of City. All services provided pursuant to this Agreement shall be performed by Consultant or under its supervision. Consultant will determine the means, methods, and details of performing the services. Any additional personnel performing services under this Agreement on behalf of Consultant shall also not be employees of City and shall at all times be under Consultant’s exclusive direction and control. Consultant shall pay all wages, salaries, and other amounts due such personnel in connection with their performance of services under this Agreement and as required by law. Consultant shall be responsible for all reports and obligations respecting such additional personnel, including, but not limited to: social security taxes, income tax withholding, unemployment insurance, disability insurance, and workers’ compensation insurance.

9.2. Consultant shall indemnify and hold harmless City and its elected officials, officers, employees, servants, designated volunteers, and agents serving as independent contractors in the role of City officials, from any and all liability, damages, claims, costs, and expenses of any nature to the extent arising from Consultant’s personnel practices. City shall have the right to offset against the amount of any fees due to Consultant under this Agreement any amount due to City from Consultant as a result of Consultant’s failure to promptly pay to City any reimbursement or indemnification arising under this Section. All duties of Consultant under this Section

9.2 shall survive termination of this Agreement.

9.3. In the event that Consultant provides any of the Services by or through any employee or any person whose work under this Agreement becomes cause for any payment or contribution required by law, including but not limited to the California Public Employees' Pension Reform Act (PEPRA), to the Public Employee Retirement System, PAGE 233 of 589
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Consultant shall be solely responsible for all such payments or contributions.

Consultant shall indemnify and hold harmless City and its elected officials, officers, employees, servants, designated volunteers, and agents serving as independent contractors in the role of City officials, from any and all liability, damages, claims, costs, and expenses of any nature to the extent arising from Consultant’s failure to make any such payment or contribution. City shall have the right to offset against the amount of any fees due to Consultant under this Agreement any amount due to City from Consultant as a result of Consultant’s failure to promptly pay to City any reimbursement or indemnification arising under this Section. All duties of Consultant under this Section

9.3 shall survive termination of this Agreement.

10.0 Subcontractors
Unless otherwise specified in Exhibit A, no portion of this Agreement shall be subcontracted without the prior written approval of the City Manager. Consultant is fully responsible to City for the performance of any and all subcontractors, if any.

11.0 Assignment
Consultant shall not assign or transfer any interest in this Agreement whether by assignment or novation, without the prior written consent of City Manager. Any purported assignment without such consent shall be void and without effect.

12.0 Insurance

12.1. Consultant shall not commence work under this Agreement until it has provided evidence satisfactory to City that Consultant has secured all insurance required under this Section. Consultant shall furnish City with original certificates of insurance and endorsements, including but not limited to additional insured endorsements, effecting coverage required by this Agreement on forms satisfactory to City. The certificates and endorsements for each insurance policy shall be signed by a person authorized by that insurer to bind coverage on its behalf, and shall be on forms provided by City, if requested. All certificates and endorsements shall be received and approved by City before work commences. City reserves the right to require complete, certified copies of all required insurance policies, at any time.

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

12.3 Automobile liability insurance. Consultant shall maintain automobile insurance at least as broad as Insurance Services Office form CA 00 01 covering bodily injury and property damage for all activities of the Consultant arising out of or in connection with Work to be performed under this Agreement, including coverage for any PAGE 234 of 589
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owned, hired, non-owned, or rented vehicles, in an amount not less than $1,000,000 combined single limit for each accident.

12. 4 Professional liability (errors & omissions) insurance. Consultant shall maintain professional liability insurance that covers the Services to be performed in connection with this Agreement, in the minimum amount of $1,000,000 per claim and in the aggregate. Any policy inception date, continuity date, or retroactive date must be before the effective date of this agreement and Consultant agrees to maintain continuous coverage through a period no less than three years after completion of the services required by this agreement.

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

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

12.6 Cyber security and privacy liability. Consultant shall procure and maintain insurance with limits of $1,000,000 per occurrence/loss, $2,000,000 general aggregate, which shall include the following coverage:
a. Liability arising from the theft, dissemination and/or use of confidential or personally identifiable information; including but not limited to personally identifiable information (PII), protected health information (PHI), security codes, access codes, passwords, etc.
b. Network security liability arising from the unauthorized use of, access to, or tampering with computer systems, including hacker or denial of service attacks. c. Liability arising from introducing a computer virus into or otherwise causing damage to vendor (first-party) or customer’s (third party) computer, computer system, network, or similarly related property and the data, software, and programs. d. Liability arising from professional misconduct or lack of the requisite skill required for performing services defined in the contract or agreement. e. Costs associated with restoring, updating, or replacing data. f. Costs associated with a privacy breach, including notification costs, customer support, forensics, crises management, public relations consulting, legal services of a privacy attorney, credit monitoring, and identity fraud resolution services for affected individuals.

If coverage is maintained on a claims-made basis, consultant shall maintain such coverage for an additional three (3) years following termination of the contract.

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12.7 Cyber technology errors and omissions. Consultant shall procure and maintain insurance with limits of $1,000,000 per occurrence/loss, $2,000,000 general aggregate, which shall include the following coverage:
a. Liability arising from the unauthorized release of information for which an entity has the legal obligation to keep private, such as personally identifiable information (PII) and protected health information (PHI).
b. Network security liability arising from the unauthorized use of, access to, or tampering with computer systems, including hacker or denial of service attacks. c. Liability arising from the failure of technology products (software and hardware) required under the contract for Consultant to properly perform the intended services. d. Claims alleging the failure of computer security that result in the transmission of malicious code, deletion, destruction or alteration of data, or the denial of service. e. Electronic Media Liability arising from personal injury, plagiarism or misappropriation of ideas, domain name infringement or improper deep-linking or framing, and infringement or violation of intellectual property rights. f. Liability arising from the rendering, or failure to render, professional services. g. Defense costs in regulatory proceedings (state and federal) involving a violation of privacy laws or intellectual property rights.
h. Crisis management and other expert services.

If coverage is maintained on a claims-made basis, the Consultant shall maintain such coverage for an additional three (3) years following termination of the contract.

Other provisions or requirements

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

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

12.10Primary/noncontributing. Coverage provided by Consultant shall be primary and any insurance or self-insurance procured or maintained by Agency shall not PAGE 236 of 589
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be required to contribute with it. The limits of insurance required herein may be satisfied by a combination of primary and umbrella or excess insurance. Any umbrella or excess insurance shall contain or be endorsed to contain a provision that such coverage shall also apply on a primary and non-contributory basis for the benefit of Agency before the Agency’s own insurance or self- insurance shall be called upon to protect it as a named insured.

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

12.12 Acceptable insurers. All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance or is on the List of Approved Surplus Line Insurers in the State of California, with an assigned policyholders’ Rating of A- (or higher) and Financial Size Category Class VII (or larger) in accordance with the latest edition of Best’s Key Rating Guide, unless otherwise approved by the Agency’s Risk Manager.

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

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

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

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

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

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

12.19 Separation of insureds. A severability of interests provision must apply for all additional insureds ensuring that Consultant’s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the insurer’s limits of liability. The policy(ies) shall not contain any crossliability exclusions.

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

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

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

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

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

12.24 Additional insurance. Consultant shall also procure and maintain, at its own cost and expense, any additional kinds of insurance, which in its own judgment may be necessary for its proper protection and prosecution of the work.

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13.0 Indemnification, Hold Harmless, and Duty to Defend

13.1. To the maximum extent permitted by law, Consultant shall defend, indemnify, and hold City, its officials, officers, employees, volunteers and agents serving as independent contractors in the role of city officials (collectively “Indemnitees”) free and harmless from any and all claims, demands, causes of action, costs, expenses, liability, loss, damage or injury, in law or equity, to property or persons, including wrongful death, in any manner arising out of or incident to any acts or omissions of Consultant, its employees, its agents, or its subcontractors in connection with the performance of this Agreement, including without limitation the payment of all consequential damages and attorneys’ fees and other related costs and expenses, except for such loss or damage arising from the sole negligence or willful misconduct of City. With respect to any and all such aforesaid suits, actions, or other legal proceedings of every kind that may be brought or instituted against Indemnitees, Consultant shall defend Indemnitees, at Consultant’s own cost, expense, and risk, and shall pay and satisfy any judgment, award, or decree that may be rendered against Indemnitees. Consultant shall reimburse City and its directors, officials, officers, employees, agents and/or volunteers, for any and all legal expenses and costs incurred by each of them in connection therewith or in enforcing the indemnity herein provided.

Consultant’s obligation to indemnify shall not be restricted to insurance proceeds, if any, received by Consultant, City, its directors, officials, officers, employees, agents or volunteers. All duties of Consultant under this Section shall survive termination of this Agreement.

13.2. Consultant must obtain executed indemnity agreements with provisions identical to those in Section 13.1 from each and every subcontractor or any other person or entity involved by, for, with or on behalf of Consultant in the performance of the Services. If Consultant fails to obtain such indemnities, Consultant shall be fully responsible and indemnify, hold harmless, and defend the Indemnitees from and against any and all Claims in law or equity, whether actual, alleged, or threatened, arising or claimed to arise out of, pertaining to, or relating to the acts or omissions of Consultant’s subcontractor, its officers, agents, servants, employees, subcontractors, materialmen, contractors, or their respective officers, agents, servants or employees (or any entity or individual that Consultant’s subcontractor shall bear the legal liability thereof) in the performance of this Agreement, including the Indemnitees’ active or passive negligence, except for Claims arising from the sole negligence or willful misconduct of the Indemnitees, as determined by final arbitration or court decision or by the agreement of the Parties.

14.0 Equal Opportunity
Consultant shall not discriminate against any subcontractor, employee, or applicant for employment because of race, religion, color, national origin, handicap, ancestry, sex, sexual orientation, or age. Such non-discrimination includes, but is not limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff, or termination.

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13 of 18

15.0 Labor Certification

15.1. By its signature hereunder, Consultant certifies it is aware of the provisions of Section 3700 of the California Labor Code that require every employer to be insured against liability for Workers’ Compensation or to undertake self-insurance in accordance with the provisions of that Code. Consultant shall provide evidence of such coverage before commencing the performance of the Services.

15.2. Consultant certifies that in the performance of the Services, Consultant shall not, in any manner, employ any person or contract with any person so that any Services so performed by such person would be subject to the workers’ compensation laws of the State of California unless and until Consultant gives City a certificate of consent to self-insure or a certificate of Workers' Compensation Insurance Coverage.

15.3. In the event Consultant hires a subcontractor who has employees to perform the Services or any part thereof, then Consultant shall either require the subcontractor to obtain Workers’ Compensation Insurance Coverage, or must obtain Workers’ Compensation Insurance Coverage for the subcontractor’s employees.

15.4. Any Workers’ Compensation Insurance Coverage required by or for this Agreement shall be endorsed with a waiver of subrogation in favor of City for all work performed by Consultant, its employees, its agents, and its subcontractors.

16.0 Entire Agreement
This Agreement contains the entire agreement of the parties with respect to the subject matter hereof, and supersedes all prior negotiations, understandings, or agreements. This Agreement may only be modified by a writing signed by both parties.

17.0 Severability
The invalidity in whole or in part of any provisions of this Agreement shall not void or affect the validity of the other provisions of this Agreement.

18.0 Governing Law
This Agreement shall be governed by and construed in accordance with the laws of the State of California.

19.0 No Third Party Rights
No third party shall be deemed to have any rights hereunder against either party as a result of this Agreement.

20.0 Waiver
No waiver of any default shall constitute a waiver of any other default or breach, whether of the same or other covenant or condition. No waiver, benefit, privilege, or PAGE 241 of 589
14 of 18
service voluntarily given or performed by a party shall give the other party any contractual rights by custom, estoppel, or otherwise.

21.0 Headings
Headings used in this Agreement are for reference purposes only and shall not be deemed a part of this Agreement.

22.0 Force Majeure
Consultant shall not be liable for any failure to perform any obligation under this Agreement if Consultant presents that City in its sole judgment deems acceptable that such failure was due to strikes, lockouts, labor disputes, embargoes, acts of God, governmental restrictions, governmental regulations, governmental controls, judicial orders, enemy or hostile governmental action, civil commotion, fire or other casualty, or other causes beyond Consultant’s reasonable control and not due to any act by Consultant.

23.0 Final Payment Acceptance Constitutes Release
Consultant’s acceptance of City’s final payment under this Agreement shall operate as and be a release of City from all claims and liabilities for compensation to Consultant for the Services or anything done or furnished relating thereto. Neither City’s payment to Consultant nor approval of payment constitute, nor be deemed, a release of the responsibility and liability of Consultant, its employees, sub-contractors and agents for the accuracy and competency of the information provided and/or work performed; nor shall such or payment or approval be deemed to be an assumption of such responsibility or liability by City for any defect or error in the work prepared by Consultant, its employees, subcontractors and agents.

24.0 Prohibited Interests; Conflict of Interest

24.1. Consultant covenants that it presently has no interest and shall not acquire any interest, direct or indirect, which may be affected by the Services, or which would conflict in any manner with the performance of the Services. Consultant further covenants that, in performance of this Agreement, no person having any such interest shall be employed by it. Furthermore, Consultant shall avoid the appearance of having any interest, which would conflict in any manner with the performance of the Services.

Consultant shall not accept any employment or representation during the term of this Agreement which is or may likely make Consultant “financially interested” (as provided in California Government Code §§1090 and 87100) in any decision made by City on any matter in connection with which Consultant has been retained.

24.2. Consultant further warrants and maintains that it has not employed or retained any person or entity, other than a bona fide employee working exclusively for Consultant, to solicit or obtain this Agreement. Nor has Consultant paid or agreed to pay any person or entity, other than a bona fide employee working exclusively for Consultant, any fee, commission, gift, percentage, or any other consideration contingent PAGE 242 of 589
15 of 18
upon the execution of this Agreement. Upon any breach or violation of this warranty, City shall have the right, at its sole and absolute discretion, to terminate this Agreement without further liability, or to deduct from any sums payable to Consultant hereunder the full amount or value of any such fee, commission, percentage or gift.

24.3. Consultant warrants and maintains that it has no knowledge that any officer or employee of City has any interest, whether contractual, noncontractual, financial, proprietary, or otherwise, in this transaction or in the business of Consultant, and that if any such interest comes to the knowledge of Consultant at any time during the term of this Agreement, Consultant shall immediately make a complete, written disclosure of such interest to City, even if such interest would not be deemed a prohibited “conflict of interest” under applicable laws as described in this subsection.

25.0 Attorneys’ Fees
If either party commences any legal, administrative, or other action against the other party arising out of or in connection with this Agreement, the prevailing party in such action shall be entitled to have and recover from the losing party all of its attorneys’ fees and other costs incurred in connection therewith.

26.0 Exhibits
Each exhibit referenced in this Agreement is hereby incorporated into the Agreement as if set forth in full herein. In the event of any material discrepancy between the terms of any exhibit so incorporated and the terms of this Agreement, the terms of this Agreement shall control.

27.0 Corporate Authority

27.1. Each person executing this Agreement on behalf of Consultant warrants that he or she is duly authorized to execute this Agreement on behalf of Consultant and that by his or her execution, Consultant is formally bound to the provisions of this Agreement.

27.2. Consultant certifies it is aware of the requirements of Sections 313 of the California Corporations Code. If Consultant is a corporate entity, it shall either:
(a) provide City written proof that each person executing this Agreement on Consultant’s behalf is duly authorized to bind Consultant; or (b) provide two signatories to this Agreement, of whom the first must be Consultant’s chairman of the board, president, or a vice president and the second must be Consultant’s secretary, an assistant secretary, its chief financial officer, or an assistant treasurer.

IN WITNESS WHEREOF, the Parties hereto, through their respective authorized representatives have executed this Agreement as of the Effective Date.

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CITY OF SAN MARINO
By:_________________________
Philippe Eskandar
City Manager
Attest:

By:_________________________
City Clerk
Approved as to Form:

By:_________________________
Joseph Montes
City Attorney

CONSULTANT
By:_____________________________
(Sign)
Name:__________________________
(Print)
Title: __________________________ (Print)
By:_____________________________
(Sign)
Name:__________________________
(Print)
Title: __________________________ (Print)
PAGE 244 of 589
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Exhibit A
Scope of Services
[Note: Update this Section.]
PAGE 245 of 589
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Exhibit B
Fee Schedule
[Note: Update this Section.]
PAGE 246 of 589
12 ATTACHMENT 2

EVALUATION SCORING SHEET
PAGE 247 of 589
City of San Marino

IT MANAMAGEMENT SERVICES - RFP

EVALUATION SCORING SHEET
Firm: ___________________________________
ORAL INTERVIEW EVALUATION CRITERIA POSS.

POINTS
PTS
Program Understanding / Innovation
Clear understanding of the City’s needs,
and potential issues; and approach to
managing project and innovative
approach
30 Points
Notes:

Communication Skills / RFP Quality
Oral communication/interpersonal skills
including responses to questions. Quality
of RFP and accuracy of responses to
questions
30 Points
Notes:

Qualifications
Qualifications and experience of
proposed Firm, including past experience
on similar projects in similar roles.

Experience in Public Safety related IT
projects
20 Points
Notes:

Costs
Evaluation based on overall flat monthly
or annual cost and hourly rate 20
Points
Notes:

TOTAL POINTS
Evaluator: ____________________________
Signature: ____________________________ Date: _______________ PAGE 248 of 589
SDI Presence – LA | 6080 Center Dr, 6th Floor, Los Angeles, CA 90045 | www.sdipresence.com | Toll: 888.YOUR.SDI (888.968.7734) Proposal Prepared For:

City of San Marino
Information Technology Management Services
October 25, 2023
Respectfully Submitted By:

Phil Danie
Senior Vice President
[email protected]
949-836-3351
PAGE 249 of 589
Proposal to City of San Marino for
Information Technology Management Services
October 25, 2023 Page i

TABLE OF CONTENTS
Cover Letter ....................................................................................................................................... 1 Section 1 Scope of Work Approach ................................................................................................ 2 Section 2 Services Offered ........................................................................................................... 22 Section 3 Annual Contract Cost.................................................................................................... 31 Section 4 Onboarding Process and Timeline................................................................................. 34 Section 5 Qualification and References........................................................................................ 37 Appendix A West Coast Client List................................................................................................... 45 Appendix B Legal Exceptions........................................................................................................... 49 PAGE 250 of 589
Proposal to City of San Marino for
Information Technology Management Services
October 25, 2023 Page 1
Cover Letter
October 25, 2023
Paul Chung
Finance Director
City of San Marino
2200 Huntington Drive
San Marino, CA 91108
Re: Request for Proposal Information Technology Management Services Dear Mr. Chung,
SDI Presence LLC (SDI) is pleased to submit our response to your Request for Proposal for Information Technology Management Services. SDI is committed to supporting the City of San Marino (City) with the scope of work/services listed in the RFP.

About SDI
SDI is an IT Consultancy and Managed Services firm that helps public sector clients enhance their use of technology. SDI has worked with more than 190 local government agencies, completing IT and Network Assessments, IT, GIS, SCADA, CAD Management and Managed Services, IT Service Level Assessments, Policy and Procedure Development, Project Management, Software Development, Technology Procurement and Selection, Cybersecurity, Application Management and Support, and Implementation Support Services. Our team is comprised of highly qualified IT specialists with experience supporting local government clients.

SDI prides itself on being there for our clients and ensuring our presence by being responsive, proactive, innovative, and timely. From our years of experience within all areas of IT delivery and our local “home team” knowledge and responsiveness, SDI is unmatched in our qualifications for supporting the City.

Contacts
Sharee L. Wolff is the Chief Financial Officer of SDI and is hereby authorized to bind the company. Phil Danie, Senior Vice President, is authorized to negotiate the terms of the contract.

Contact Information
Phil Danie
Email: [email protected] Telephone: 949-836-3351
Sincerely,
Sharee L. Wolff, Chief Financial Officer
SDI Presence LLC
PAGE 251 of 589
Proposal to City of San Marino for
Information Technology Management Services
October 25, 2023 Page 2
Section 1 Scope of Work Approach
IT Support
SDI has reviewed the City’s Scope of Work and understands that the City desires an experienced and qualified IT managed services partner to provide IT support, server management, network maintenance and management, help desk support, cyber security monitoring and management, and special project delivery.

SDI has reviewed the City of San Marino’s objectives as stated in the RFP and have mapped them to the corresponding Service Delivery Model below. Each Service Delivery Activity follows proven processes and plans to meet each of the City’s objectives. SDI will deliver all services requested in the City’s RFP Scope of Work.

SDI’s West Coast Division has worked with 190+ local government agencies to provide IT Managed Services, custom software development, complete IT/Network Assessments, IT/GIS Master Plans, IT Service Level Assessments, Policy/Procedure Development, Project Management, Technology Procurement and Selection, and Implementation Support. Our West Coast Client List is presented in Appendix A.

Our experience includes providing IT managed services to a major city that includes data center services, end-user computing services (includes end-user hardware/software deployment, maintenance, and management), data network services (including ongoing infrastructure upgrades and deployment), help desk services, cross-functional services, and special projects.

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Proposal to City of San Marino for
Information Technology Management Services
October 25, 2023 Page 3
SDI derives experience from working as IT specialists in the public sector for over 25 years. During this time, our municipal clients have engaged our team to provide on-site and remote IT support services and to conduct public sector technology plans. SDI has developed short and long-range project plans and offered valuable insight for budgeting and procurement.

SDI understands the City’s IT systems environment, we manage many similar sized, full-service municipalities with 24x7x365 needs. While not exhaustive, SDI understands the City’s desired list of services required below:
♦ Inventory Control & Reporting
♦ Warranty Management
♦ Asset Tracking
♦ Patching and compliance for Operating Systems and Installed Applications ♦ Mobile Device Management
♦ Mobile Data Computers for Police Department
♦ Cradle Points for Police Department
♦ Cellphone issues
♦ Mitel VOIP Telephone System
♦ Antivirus & Antimalware management and remediation
♦ Security Policy Management
♦ Remote Monitoring of hardware and software for errors, warnings, or non- compliance ♦ Installation and maintenance of UPS units
Server Management
SDI’s server support methodology is integrated within the overall endpoint management practices described on the following pages in the Managed Services Technology section. In general, SDI typically furnishes clients with an Information Technology Service Management solution to increase the efficiency and effectiveness of the entire service offering. This host-based continuous monitoring agent, installed on each computer endpoint, conducts environmental data collection and provides a centralized IT management portal.

SDI encourages clients to maintain manufacturer hardware warranty support on mission critical systems.

While SDI will perform initial assessments of hardware problems as well as basic upgrades (RAM, storage, controller cards), on-site technicians generally defer to manufacturer warranty coverage for hardware failures.

Services management such as Active Directory, DHCP, DNS, Group Policy, Print and Document Services, IIS, Windows Deployment Services, and Windows Server Update Services are all managed as a part of the core operations for all environments.

SDI will implement a monthly patch management schedule for server operating systems wherein select non-critical servers will receive operating system and application patches as a part of a test group. In the event these servers experience problems with the patches, a rollback process will be enacted. If no problems are identified, the patches will be applied to the remaining servers.

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Proposal to City of San Marino for
Information Technology Management Services
October 25, 2023 Page 4
Network Maintenance and Management
Network Administration
SDI manages numerous firewalls from manufacturers such as Palo Alto, Cisco, Fortinet, Sonicwall; site-tosite VPNs (e.g., Los Angeles County Sheriff, Verdugo Fire Dispatch), and remote-access VPNs leveraged for both border security and internal segmentation at several sites. Additionally, we have migrated several clients to Palo Alto application-layer/next-generation firewalls (NGFW) to provide a more unified threat management platform that includes application-layer visibility to increase understanding of application traffic, expanded traffic control options beyond blunt allow/deny, reduction of threat vectors, improved performance and security, and simplified management.

Network infrastructure monitoring and alerting is typically performed using a mixed on-premises and cloud-based network monitoring tool to perform continuous monitoring of network devices and traffic.

This fee-based tool provides a real-time view of the City’s network, including all networked devices and detailed interconnections. This service provides:
♦ A real-time view of the City’s network, including all the devices and interconnections ♦ A real-time inventory of all the technology on the City’s network ♦ Automated backups of network infrastructure configurations ♦ 24/7 proactive infrastructure monitoring and alerting ♦ Automated troubleshooting tools and secure remote access to the City’s infrastructure devices ♦ Performance reports
SDI understands the City’s network environment, we manage many similar sized, full-service municipalities with 24x7x365 needs. While not exhaustive, SDI understands the City’s desired list of services required below:
♦ Inventory Control & Reporting
♦ Warranty Management
♦ Asset Tracking
♦ Patching and compliance for Operating Systems, appliance upgrades and all network equipment including firewalls, switching, routing and wireless infrastructure ♦ Security Policy Management
♦ Remote Monitoring of hardware for errors, warnings, or non‐compliance ♦ Monthly change control reporting
♦ Monthly reporting on configuration backup
Help Desk Support
Desktop Support
On day 1, SDI will assume full responsibility for the City’s helpdesk. SDI will publish a single call number for accessing the helpdesk and become a single point of contact for all City IT related calls. All City incidents will be directed to the helpdesk and all calls will be logged and entered into the ticketing system. All incidents will be handled and tracked according to the agreed upon event handling SLAs and will follow the City’s escalation procedures. All tickets will be tracked by the helpdesk agent that received the initial PAGE 254 of 589
Proposal to City of San Marino for
Information Technology Management Services
October 25, 2023 Page 5
contact. In the event the incident gets escalated elsewhere within the City’s IT, the helpdesk agent will be accountable for proper closure of any ticket and follow up with the end user.

SDI will provide detailed reports capturing details such as, speed to answer, time to close tickets, tickets and calls in wait queues, number of open/closed tickets, and root causing analysis. The detail of each of these reports will vary and have dependencies on the current PBX and tool capabilities. SDI will work with the City on ways to minimize the number of tickets and FTEs required supporting the helpdesk. This can be accomplished with self-help and FAQ configurations that will give users the ability to be more selfsufficient.

SDI will enhance the level of helpdesk and end users services to the City by applying the experience we have captured by supporting helpdesk services for numerous public agencies in California and throughout the United States. We will apply our Helpdesk Best Practices guided by ITIL framework that will eliminate repeat tickets, streamline complexities, add additional training to existing helpdesk agents, provide for more proactive responses to issues, and provide better end user satisfaction.

SDI has as its goal to support the City in a professional, effective manner with a proven process to meet SLAs and customer expectations.

Representative Incident Management Process Flow
There are many implementation models for the helpdesk process depending on the client needs, culture, and tools available. Based on our experience, SDI understands the City’s requirements for helpdesk support and has customized our proven Helpdesk support process to meet the City’s needs as shown in the following Process Map.

PAGE 255 of 589
Proposal to City of San Marino for
Information Technology Management Services
October 25, 2023 Page 6 Contact SDI Help Desk 3rd Party Dispatch Escalation TBD City of San Marino

1. Receives
Request

2.Incident Created

4. Engineer Contacts
User

7. Help Desk Updates
and Closes Ticket

5. Engineer Resolves
Issue
Can issue be
resolved by Level
2?

10. Escalation Engineer
decision process
Yes
No

11. Network/
Manufacturer/3rd
Party

12. Engineer Resolves
Issue and calls service
desk
Yes
Change
Control
Needed?

13. Change
Control
Process

6. Engineer updates
ticket and calls CHWD
Service Desk
No
Yes
Close
Ticket,
send
survey

8. User receives autonotification that
ticket is resolved or
phone call. Survey
emailed.

Help Desk Process Flow
Is issue
resolved?
Can Help Desk
Resolve? Yes
Dispatch

3. Searches
Knowledge
base
No
Explanation of Process Flow Diagram
Step 1:

A) Helpdesk receives call from user. The Agent will review the helpdesk troubleshooting script with the caller to determine what service is required or if a quick solution can be provided.

B) All calls, faxes, e-mails, voicemails, self-service web tickets, or SNMP Alerts to the helpdesk will generate a ticket that will include:
• Problem description
• Contact name and phone number
• Results of basic helpdesk troubleshooting script to determine type of service • Service ticket is generated detailing as much information as possible to document the request
C) Helpdesk will determine what service is required and assign the ticket to the appropriate category:
• User account administration handled by the helpdesk
• Basic Microsoft support
• IMAC work
• Desktop, Server or Network Support (depending on the type of service required) PAGE 256 of 589
Proposal to City of San Marino for
Information Technology Management Services
October 25, 2023 Page 7
• Exception Process to the City
• Helpdesk will update escalation information as directed Step 2:

Using pre-define scripts, the helpdesk routes the ticket to appropriate support team.

Step 3:

Helpdesk administers user account request or other helpdesk support and closes ticket.

Step 4:

Helpdesk contacts appropriate support team with:
• Ticket #
• Customer contact, phone, location
• Problem description
• Urgency (SLA)
Step 5:

The Engineer reviews ticket information and contacts the user. Updates ticket as needed. • Determines if it can be supported via the phone
• Determines if a desk-side visit is required
• Updates ticket as needed
Step 6:

The engineer determines if he can resolve the problem, reassign to Level 2 or another group, or escalate.

Steps 7:

If assigned Engineer cannot resolve issue:
• Engineer notifies helpdesk
• Helpdesk updates ticket and assigns to next level
• Ticket is set to “high” priority
• Manager is contacted within 1 hour
• Escalated per the City’s procedures
Step 8:

Engineer resolves ticket.

Step 9:

Support engineer updates ticket with problem resolution and notifies the helpdesk.

Step 10:

Helpdesk closes ticket and sends out the Customer Satisfaction Survey.

Step 11:

Escalation Process includes notification of support manager and/or the City.

Step 12:

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Proposal to City of San Marino for
Information Technology Management Services
October 25, 2023 Page 8
In the City’s Exceptions Process, the City directs the helpdesk on how to handle the exception. Helpdesk updates the ticket and continues the process.

Helpdesk Services
Responsibility Matrix
Helpdesk Services
The following activities highlight selected major functions that SDI shall provide under the Helpdesk Services Statement.

1. Provide and publish a single point of contact for the City’s users to contact the helpdesk.

2. Utilize SDI’s ticket tracking system to open, log, track details of, route, and close problems and service requests.

3. Provide Level 1 support to the City users.

4. Coordinate Level 2 and Level 3 support whether provided by the City or SDI.

5. Manage priority identifications and escalations.

6. Utilize the SDI’s helpdesk management software to facilitate reporting that differentiates between multiple calls reporting the same problem and new (unique) calls.

7. Utilize the SDI’s helpdesk management software to facilitate trending analysis of helpdesk calls including volumes, resolution levels and explanations for deviations from norm, and to provide trend analysis on types of problems reported. This shall include providing methods of how reporting statistics were calculated.

8. Administer the City’s customer satisfaction surveys based on your timetables and priorities.

9. Proactively communicate to the City’s users, relevant information regarding Information Systems issues including planned downtime of systems, production problems and unplanned problems.

10. Work collaboratively with the City to identify and manage exceptions to desktop standards as specified by the City.

11. Report on response and resolution times of Level 2 and Level 3 support. This shall include providing methods of how reporting statistics were calculated.

12. Oversee coordination of standard training solutions as identified by the City, technology vendors, and Contractor.

13. Implement and maintain a helpdesk operation for the City that provides staffed coverage Monday to Thursday 7:00 AM PST to 5:00 PM PST and Friday 7:00 AM PST – 11:00 AM PST, with v-mail, email, fax and escalation procedures during non-staffed hours.

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Proposal to City of San Marino for
Information Technology Management Services
October 25, 2023 Page 9

14. Accept calls pertaining to all of the services provided under the contract.

15. Utilize the SDI’s helpdesk management software to facilitate searching historical service requests (problem tickets) and problem resolutions.

16. Contact the City’s users to provide problem status appropriate to the severity level of the problem.

17. Follow the City’s approved escalation procedures for severity level adjustments and problem ticket resolution.

18. Provide a problem management corrective action process whereby repetitive problem tickets of a similar nature are cleared or eliminated as quickly as possible and escalating staff issues to the appropriate manager for resolution.

19. Work with the City’s IT staff, when applicable, to reduce the overall resolution time for problem tickets.

20. Be responsible for contacting the City’s staff via paging, email, voicemail, and conference calls as required by the severity of the problem. Provide regular reports to assist leadership and managers to effectively allocate resources and measure team performance.

21. Maintain network connectivity for Helpdesk Services.

22. Utilize the City’s VRU (Voice Response Unit) for direction of helpdesk services calls.

23. Maintain the City’s problem ticketing system, for all of IS, including without limitation training staff on how to use the system, making system modifications as needed.

24. Maintain an escalation contact list of all IT staff and management with applications supported and contact numbers.

25. Maintain appropriate database information that encompasses all problem management activities maintained by the helpdesk.

26. Provide education of helpdesk staff on all new product upgrades or implementations by working with project teams prior to implementation to production and access by the City’s users.

27. Train new helpdesk staff on the IS environment at the City, and on applications.

28. Manage first contact with the City’s users via telephone, email, and the Intranet subject to the limitations of the City’s technology.

29. Interact with users in a professional, efficient and service-oriented manner, consistently.

30. Document, publish and maintain helpdesk procedures.

31. Create ticket-tracking codes for service requests and problems.

32. Utilize ticket-tracking system to expedite management of helpdesk calls.

33. Open, log, prioritize and monitor progress of inquiries.

34. Query the user for all relevant information concerning the inquiry, including, without limitation, the City’s employee identification, username, user location/department, user phone number, inquiry severity, expected time of user call back from helpdesk and description of request/problem.

35. Verify that no ticket already exists for the inquiry before opening a new ticket.

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Proposal to City of San Marino for
Information Technology Management Services
October 25, 2023 Page 10

36. Perform inquiry problem and service request management in accordance with handling requirements.

37. Re-route misdirected calls.

38. Establish a process for establishing identity of the caller prior to exercising any security related functions.

39. Perform password reset functions.

40. Escalate problems in accordance with the City’s escalation procedures.

41. Maintain and report inquiry statistics.

42. Produce and provide ticket inventory and status reports.

43. Provide ticket tracking system access to authorized City and Contractor Users.

44. Perform quarterly trend analysis on helpdesk inquiries.

45. Identify areas requiring attention (changes to process, additions to service provided, training recommendations, etc.)

46. Implement actions items.

47. Review requests for conformity to hardware and software standards as specified by the City.

48. Work orders are to be initially logged by helpdesk team and then transferred to Desktop Services for completion.

49. Exception to Desktop Standards Management.

50. Develop customer satisfaction survey, measurement method, distribution schedule and procedures.

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Proposal to City of San Marino for
Information Technology Management Services
October 25, 2023 Page 11
Desktop Application Support
SDI directly supports or coordinates with external third-party vendors to support, numerous applications central to municipal and public safety operations. These programs include, but are not limited to:

Microsoft Office and 365, ERP, Esri ArcGIS, Laserfiche, HDL, Computer Aided Dispatch/Records Management System (CAD/RMS), NetMotion Mobility, BlueCheck, Coplink, 2FA, in-car video systems, body-worn video systems, surveillance systems, numerous desktop applications, and many enterpriselevel antivirus solutions. SDI supports access to Justice Data Interface Controller (JDIC), Electronic Suspected Child Abuse Report System (E-SCARS), LACRIS, ESCARS, Verdugo Fire Dispatch, and electronic Probable Cause determinations/declarations (ePCD).

SDI has transitioned several clients from a version-based Microsoft Office model to software as a service with subscription-based Office 365, including Microsoft-hosted Exchange email solutions and SharePoint Online. This model of advanced hosted email simplifies management and helps protect information with advanced features such as anti-malware, anti-spam filtering, data loss prevention, and disaster recovery.

Guarantee - Service Level Matrix and Response Times
SDI shall follow industry best practices, specifically the "Service Operation" standards outlined by the Information Technology Infrastructure Library (ITIL). Contractor shall use processes governed by a Service Level Matrix ("SLM") and a set of Service Level Objectives ("SLOs") to identify incidents (i.e., alerts and/or events), define each incident's priority level (defined by that incident's urgency and impact), respond to incidents in order of priority, and ultimately resolve incidents as quickly as possible.

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Service TypeService Delivery
Regular
Service
7:00 AM to 5:00 PM,
Monday – Thursday and
Friday 7:00 AM – 11:00 AM
10 Hours of Service
Monday -Thursday
4 Hours of Service Friday
Help Desk hours are defined as 7:00 AM to 5:00 PM, Monday through Thursday and Friday 7:00 AM – 11:00 AM except for City holidays.

Network support 24x7x365 is included in pricing without additional charges.

After Hours
Service
14 to 20 hours of service
Monday – Friday
All hours Saturday, Sunday
and City holidays.

Desktop support performed by SDI outside the normal
business hours, on weekends or holidays will be billed at the normal hourly rates.

Table 1 ‐ Service Level Metrics / Objectives
P1 – Critical P2 – Urgent P3 – High/Normal P4 – Low
Metric Objective Objective Objective Objective
Availability – Network
Support Operations
24x7x365 24x7x365 24x7x365 24x7x365
Availability – Helpdesk 24x7x365 24x7x365 24x7x365 Regular Service Hours
Acknowledgement 15 minutes 15 minutes 60 minutes 120 minutes Status Updates 30 minutes 2 hours 8 hours 12 hours
Resolution Plan < 4 hours < 8 hours < 8 hours/NBD < 3 days Resolution Time
90% resolved in
less than 4 hours
90% resolved in
less than 8 hours
75% resolved in
less than 16
business hours
75% resolved
in less
than 1 week
Table 2‐ Priority Levels
Incident Priority Definition
P1 – Critical Typically, an emergency incident affecting all or most users and that is halting the use of critical "line of business" applications and/or access to the network or a data/security breach.

Examples: Email server(s) not sending/receiving email, Internet connection down, database server appears offline, etc.

P2 – Urgent Likely affecting multiple users and impairing access to one or more critical business applications, though, not resulting in a complete stoppage of work.

Examples: Slow/intermittent Internet connectivity, backup failures, imminent server crash due to lack of hard disk space, etc.

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P3 -
High/Normal
Typically affecting between 1 and 5 users and generally non‐critical in nature.

Workarounds are likely available.

Examples: User cannot print to a network printer, user's domain account locked due to unsuccessful password entries, a user has deleted an email by accident and wants it restored, etc.

P4 ‐ Low The problem affects no more than a few users and is typically non‐business impacting.

Workarounds available.

Examples: User has some "dead pixels" on her monitor, user application displaying persistent error messages with no impact to use of the application, occasional static heard on a particular VoIP phone, etc.

SDI understands the City’s helpdesk support and on-site support requirements, we manage many similar sized, full-service municipalities with 24x7x365 needs. While not exhaustive, SDI understands the City’s desired list of services required below:
♦ Service Call Tracking
♦ Monthly reports on problems, issues, affected users, problem categories ♦ Application & operating system helpdesk services
♦ Guidance and user support pertaining to proper use of City applications and systems ♦ Guidance and user support pertaining to proper response to security concerns such as websites, emails, and application behavior
♦ Construction of a knowledge base of Support Resolutions and Instructional How‐To articles.

The platform housing this data, and the data within the platform shall be owned by the City. ♦ Support during business hours must include on‐site support as well as phone or remote support as needed to meet the requirements below. Business Hours are Monday – Thursday from 7 AM until 5:00 PM and Friday from 7 AM until 11 AM. City Holidays are excluded. ♦ Support during after business hours for Public Safety staff (Police, Public Works and Fire). ♦ Onsite location of at least one support person located within City’s IT office for “drop‐in” support requests from users once a week.
o Onsite support staff available to assist in user training and orientation on the first day of any newly hired City Employee
o Onsite support of City Hall Employees by 9 AM each morning o Onsite support for basic phone problems
o Onsite support to troubleshoot basic network issues with the use of the City’s remote monitoring system
o Onsite support should have a good understanding of all the Internet connections and providers
o Onsite support to rollout new computers/laptops
o Onsite support for reviewing cyber security logs
o Onsite support for reviewing current IT Management systems (Switches, Network, Wi‐Fi) o Onsite support for Police department specific IT needs o Onsite support for City Council presentation regarding IT specific projects during the annual budget process
♦ Meet with the Police Department once a month to review all outstanding IT projects and review status updates
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Screen/Background Checks/CJIS Certification
SDI will comply with the City’s requirements for a criminal background check. The SDI team completes a rigorous screening and evaluation process for potential hires prior to client submission. We also use a three-tier approval system that includes the senior recruiter, the local technical manager, and the program manager before our client ever sees a project resource.

We ensure that all employees will comply with the City’s requirements (e.g., W2, verified work permit, background checks, drug tests, etc.). Our screening and evaluation process includes:
• Background and work reference checks
• Credit checks
• Criminal (local, fed, and national) checks
• Cultural fit and communication skills
• DMV report checks
• Drug tests (for consultants engaged in client projects or at a client’s request) • Education verification
• Phone and in-person interviews
• Sexual offender database checks
• Social Security verification
All SDI employees assigned to the City of San Marino will have a minimum of CJIS Level 2 certification with most, including on-site personnel, possessing level 3 and higher.

Cyber Security
Security Administration
SDI adheres to a multilayered model to ensure our own organization, as well as connections to our clients’ systems, follow industry leading and nationally recognized information security frameworks. While the term best security practices may be an ever-moving target, our practices go beyond organizational policies and security awareness training. Notable approaches include, but are not limited to:
♦ Identity Management & Access Control via industry-leading multifactor authentication (MFA) solutions.
♦ Vulnerability management and continuous monitoring of all IT systems. ♦ Secure remote access with virtual private network (VPN) tunnels. ♦ Access to internal and client resources follow the principle of least privilege. o Vulnerability management and continuous monitoring of all IT systems. o Secure remote access with virtual private network (VPN) tunnels. o Access to internal and client resources follow the principle of least privilege.

While this is a sampling of proprietary internal controls, client system information security recommendations typically include a robust layering that may include many or all of the following:

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♦ Border Protection
o Internet service provider (ISP) monitoring
o Distributed denial of service (DDoS) Protection
o CISA penetration testing
o Third-party penetration testing
o Email filtering
♦ Network Protection/Firewall Segmentation
o GeoFencing
o Intrusion prevention/detection system (IPS/IDS)
o Malicious address/blacklist blocking
o Threat management/exploit protection
o Layer 7 application control
♦ Extended Detection and Response (XDR)
o Continuous monitoring and automated artificial intelligence (AI) response o Endpoint anti-virus/anti-malware management
o Phishing email testing and assessment
o URL filtering
o Vulnerability assessment and remediation
♦ Disaster Recovery
o Rapid access to on and off-site data backups
o Encrypted data snapshots on shared data repositories
o Preconfigured server recovery templates and desktop device images o Rapid software deployment capabilities
♦ Insider Threat Management
o User access controls
o Least privilege
o User training
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SDI’s Certified Security Professionals have performed penetration testing for many satisfied clients. SDI will coordinate annual external penetration testing with the selected vendor.

SDI Security Team
Comprehensive expertise to rapidly identify existing vulnerabilities and reduce overall impact to client environments.
♦ Team includes CISMs, CCISPs, and Security certifications in leading products (MS, Cisco, etc) ♦ PMP-certified lead for each engagement
♦ Core expertise in network and infrastructure support and delivery – can lead and assist clients in multiple IT areas prior to the audit, during the audit, and take ownership of remediation management of items discovered in the audit
♦ Resume of successful engagements at major mission-critical government clients SDI Cybersecurity Partnerships
The SDI team holds strategic relationships with a range of partners to address cybersecurity at multiple levels with each unique client environment.

SDI Cybersecurity Solutions
The SDI team offers a comprehensive suite of Cybersecurity Services to address our clients’ current state of cyber exposure and to affect immediate cyber improvements.

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SDI understands the City’s cyber security requirements, we manage many similar sized, full-service municipalities with 24x7x365 needs. While not exhaustive, SDI understands the City’s desired list of services required below:
♦ Monitoring & Management of the existing DNS Security and content filtering system. ♦ Monitoring & Management of the existing Anti‐Malware System. ♦ Monitoring & Management of the existing Next‐Gen Antivirus and Security system. ♦ Provide standard Antivirus software, and management of said software to all endpoint devices. ♦ Provide a Learning Management System for City’s employees, curate the trainings provided to end users
Special IT Projects (Budgeted Projects)
SDI understands the City’s requirement to support special one-off projects. Depending on the City’s needs and size and scope of the project, SDI is often able to perform IT projects within the monthly IT commitment cost.

SDI’s approach to project management
The SDI team organizes its PMO and PM methodology around the nine Knowledge Areas in accordance with the Project Management Institute’s PMBOK Guide (of which the SDI team is a corporate member) and their recognized Body of Knowledge. The purpose of these Knowledge Areas is to ensure that projects are completed to specification, on time and within budget. The Knowledge areas include:

1. Project Integration Management

2. Project Scope Management

3. Project Time Management

4. Project Cost Management

5. Project Quality Management

6. Project Human Resources Management
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7. Project Communications Management

8. Project Risk Management

9. Project Procurement Management

1. Project Integration Management - ensures that the various elements of the project are properly coordinated and executed. Processes associated with this Knowledge Area include:
a. Project Charter Development – this document formally authorizes the project. b. Preliminary Project Scope Development – the definition of the project and what needs to be accomplished.
c. Project Management Plan Development – defines how the project is executed, monitored, controlled, and closed.
d. Project Execution Direction and Management – directs the performance of the planned project activities and manages the various technical and organizational interfaces that exist within a project.
e. Project Work Monitoring and Control – includes collecting, measuring, and disseminating performance information and assessing measurements and trends to effect process improvements.
f. Change Control Integration – entails carefully maintaining the project scope statement, the project management plan, other deliverables and then continuously managing changes to these documents by rejecting or approving changes. g. Project Closure – consists of two major procedures: administrative closure and contract closure.

2. Project Scope Management - ensures that the project includes the work required, and only the work required, to complete the project successfully. Processes associated with this Knowledge Area include:
a. Scope Planning – entails creating the project scope management plan that defines the project scope, develops the detailed project scope statement, defines and develops the work breakdown structure, verifies the project scope, and controls the project scope. b. Scope Definition – defines and describes the project scope with greater specificity because more information about the project is known.
c. WBS Creation – this document organizes and defines the total scope of the project and then subdivides the project work into smaller, more manageable pieces of work with each descending level representing an increasingly detailed definition of the project work. d. Scope Verification – this is the process of obtaining the stakeholders’ formal acceptance of the completed project scope and associated deliverables. e. Scope Control – concerned with influencing the factors that create project scope changes and controlling the impact of those changes.

3. Project Time Management - ensures timely completion of the project. Processes associated with this Knowledge Area include:
a. Activity Definition – involves identifying and documenting the work that is planned to be performed and identifies the deliverables at the lowest level of the WBS. b. Activity Sequencing – involves identifying and documenting the logical relationship among schedule activities.

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c. Activity Resource Estimating – involves determining what resources (persons, equipment, or material) and what quantities of each resource will be used, and when each resource will be available to perform project activities.
d. Activity Duration Estimating – requires estimating the amount of work effort required to complete the schedule activity, the number of resources to be applied to complete the schedule activity, and the number of work periods needed to complete the schedule activity.
e. Schedule Development – determines the planned start and finish dates for project activities.
f. Schedule Control – concerned with determining the status of the project schedule, influencing the factors that create schedule changes, determining that the project schedule has changed, and managing the actual change as they occur.

4. Project Cost Management - ensures that the project is completed within the approved budget.

Processes associated with this Knowledge Area include:
a. Cost Estimating – develop an estimation of the costs of the resources needed to complete each schedule activity.
b. Cost Budgeting – involves aggregating the estimated costs of individual schedule activities or work packages to establish a total cost baseline for measuring project performance. c. Cost Control – involves researching the cause(s) of positive and negative variances and acting on the negative variances to bring expected cost overruns within acceptable limits.

5. Project Quality Management - ensures that the project will satisfy the needs for which it was undertaken. Processes associated with this Knowledge Area include:
a. Quality Planning – involves identifying which quality standards are relevant to the project and determining how to satisfy them.
b. Quality Assurance – involves applying planned, systematic quality activities to ensure that the project will employ all processes needed to meet the project requirements. c. Quality Control – involves monitoring specific project results to determine whether they comply with relevant quality standards and identifying ways to eliminate causes of unsatisfactory results.

6. Project Human Resource Management – makes the most effective use of the people involved with the project. Processes associated with this Knowledge Area include:
a. Human Resource Planning – determines the project roles, responsibilities, and reporting relationship, and creates the staffing management plan. b. Project Team Acquisition – involves obtaining the human resources needed to complete the project.
c. Project Team Development – involves improving the competencies and interaction of team members to enhance project performance.
d. Project Team Management – involves tracking team member performance, providing feedback, resolving issues, and coordinating changes to enhance project performance.

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when needed is critical. Archiving and versioning of key documents critical to the City of San Marino which provides a historical record of initial definitions and the changes that took place throughout the project until the final elements are put into service. No project should be dependent on information that is in a resource’s head, on their local equipment or hand-written in notebooks. Capturing, storing, and controlling all forms of project information must occur on a regular basis. Documents will all be stored in SharePoint.

Communication also includes sharing of information through defined mechanisms such as e-mail, newsletters, and project status meetings. Communication for the project will be controlled by the SDI team Project Executive along with the designated City of San Marino personnel. Regular distributions will be made based on a mutually agreed upon schedule.

As part of the communication process, status meetings will be scheduled on a regular basis as agreed to by the City of San Marino and SDI Project Managers. These status meetings will be used to update key project resources and City of San Marino stakeholders as to what is happening as well as any changes or issues that need to be resolved. The notes and resolutions from these meetings will be stored as part of the project documentation. In addition to scheduled status meetings, we intend to hold quarterly Governance meetings.

The SDI Team’s Methodology (SDIPath) Provides Visibility at all Levels of the Program It is imperative that the City of San Marino has an accurate picture of the status of Task Orders and the overall projects and overall program. The SDI team has developed tools and approaches that span the full range of project and program management, from individual tasks all the way to the executive governance level.

Visibility at the Project Level – The SDI team will provide MS Project schedules to track individual tasks and their assignment to individuals, percent complete, resource utilization, and other key information. This information is then rolled up into phases and total project summaries that feed into the reports published in the SDI Team Portal at the Program Management level.

Visibility at the Executive Governance (Portfolio) Level – The SDI team will produce governance reports to summarize key metrics, SLAs, and other pertinent information in a format that is geared toward the program oversight and executive perspective. These reports provide the information that the City of San Marino executives may desire to see and in the format that delivers key information.

For this project, the SDI team will work with the City of San Marino to create custom reports, charts, and other content that will provide the City of San Marino executives with a clear picture of the status of the task orders.

8. Project Risk Management – increases the probability and impact of positive events and decreases the probability and impact of events adverse to the project. Processes associated with this knowledge area include:
a. Risk Management Planning – decides how to approach and conduct the risk management activities for the project.
b. Risk Identification – determines which risks might affect the project and documents their characteristics.

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c. Qualitative Risk Analysis – prioritizing the identified risks for further action, such as Quantitative Risk Analysis or Risk Response Planning.
d. Quantitative Risk Analysis – performed on risks that have been prioritized by the Qualitative Risk Analysis process as potentially and substantially impacting the project’s competing demands.
e. Risk Response Planning – developing options and determining actions to enhance opportunities and reduce threats to the project’s objectives. f. Risk Monitoring and Control – identifying, analyzing, planning, tracking, reanalyzing, monitoring identified risks and reviewing the execution on risk responses to evaluate their effectiveness.

9. Project Procurement Management – involves processes required to purchase or acquire products, services, or results needed from outside the project team:
a. Plan Purchases and Acquisitions – identifies the project needs that can best be met by purchasing or acquiring products, services, or results outside the project organization. b. Plan Contracting – prepares the documents needed to support the Request Seller Responses process and the Select Sellers process.
c. Request Seller Responses – obtains responses, such as bids and proposals, from prospective sellers.
d. Select Sellers – receiving bids or proposals and applying evaluation criteria to select one or more sellers.
e. Contract Administration – ensures that the seller’s performance meets contractual requirements, and that the buyer performs according to the terms of the contract. f. Contract Closure – involves verification that all work and deliverables were acceptable.

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Section 2 Services Offered
Managed Services Technology
SDI typically furnishes clients with an Information Technology Service Management (ITSM) solution to increase the efficiency and effectiveness of the entire service offering. This ITSM employs a host-based continuous monitoring agent, installed on each computer endpoint, to conduct environmental data collection and centralize IT management. This highly configurable agent improves the efficiency of IT management through:
♦ Centralized remote administration, support, and power management ♦ Customized continuous monitoring and alerting
♦ Operating system patch-level monitoring and management ♦ Endpoint status reporting and alerting
♦ Inventory tracking
The monitoring and alerting feeds into the helpdesk ticket and resolution tracking component, thereby automating the tracking of system-generated alerts. Desktop endpoint management services typically include setup and configuration of desktops; ongoing hardware diagnostics and support of all desktops, printers, and other peripherals; maintenance of operating system and application patch levels in accordance with agreed-upon outage schedules; installation, upgrades, and troubleshooting of software as required; maintenance of accurate hardware and software inventories; performance of minor hardware installations and modifications on IT equipment. Server endpoint management services typically include the same as desktop endpoints with the addition of administration of server-based file systems to ensure that access to organizational data is secure and available for authorized users/groups, administration of Active Directory, enterprise application support.

Typical monthly patch management schedules include select users and systems that receive the operating system and application patches as a part of a test group. In the event these users experience problems with the patches, a rollback process will be enacted. If no problems are identified, the patches are applied to the remaining workstations.

Computer Replacement and Repairs
SDI will conduct the following as part of its IT Managed Services for the City. ♦ Monitoring, updating, patching, and break/fix activities for network equipment, servers, virtual servers, computers, printers, copiers, scanners, computer peripherals, telephones, internet services, network services, and software; and like-for-like equipment replacements. ♦ After procurement, deploy all computers and related peripherals. ♦ Create and configure all virtual equipment and appliances, including desktops, servers, and appliances, whether hosted or on City-owned physical servers, including operating system upgrades.
♦ Replacement of any “like for like” equipment.
♦ Other maintenance activities as required to ensure the City’s operations are not affected by issues related to computer hardware, software, services, and related equipment. ♦ Perform other duties as required.

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Software/Hardware Procurement
SDI provides our clients with experienced and qualified consultants that manage the procurement and selection process.

The procurement services we provide include:
♦ Request for Proposals (RFPs)
♦ Potential Vendor Lists and Pre-RFP Release Notifications ♦ Vendor Proposal Evaluation Process
♦ Proof-of-Concept (POC) Scripts
♦ Negotiation Strategies
♦ Board/Council Presentations
♦ Provide equipment and software standards and specifications ♦ Obtain quotes from competitively bid vehicle (Ex. CMAS) ♦ Confirm eligibility for warranty coverage and utilize warranty whenever possible ♦ Confirm quality and authenticity of purchased or warrantied items and labor ♦ Coordinate repair/replacement of equipment and software to ensure as little disruption as possible
♦ Thorough testing of new equipment or software prior to placing into production ♦ Ensure prompt resolution of IT product or software defects SDI provides clients with the following procurement features:
♦ Extensive procurement and selection experience to help ensure a successful procurement ♦ Extensive experience with developing RFPs that help insulate procurements from protest ♦ Extensive experience with developing RFP cost templates that ensure apples-to-apples comparison of vendor pricing
♦ Extensive experience with developing proposal evaluation processes to ensure clients select the best value solutions
♦ Extensive project management experience to ensure clients consider and appropriately plan schedule, scope, and resource requirement
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SDI’s core services include:

SDI offers a broad technical skill set to our clients, offering deep expertise in each stage of the traditional or cloud-based systems lifecycle. SDI brings a well-rounded team of professional business consultants, certified technicians and years of mission-critical IT experience to each of our client engagements.

Office 365 Administration
SDI is a Microsoft Silver Partner meeting Microsoft’s high standard of technical performance, service quality, and customer care. SDI has numerous employees with Microsoft certifications.

Procurement
SDI has assisted other municipal clients in the region with the procurement of Microsoft licensed products by leveraging existing Enterprise Agreements previously negotiated by larger organization(s) to obtain favorable pricing not typically available to smaller local government organizations.

Modernization
SDI has transitioned several clients from a version-based Microsoft Office model to software as a service with subscription-based Office 365 hosted on Microsoft 365 Government Community Cloud (GCC), including Microsoft-hosted email solutions, Active Directory/Azure synchronization, OneDrive, SharePoint Online, Teams, and more. This model of advanced hosted email and collaboration tools simplifies management and helps protect information with advanced features such as anti-malware, anti-spam filtering, data loss prevention, and disaster recovery.

Examples of local clients for which SDI has coordinated recent Microsoft modernization projects include:
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application single sign on (SSO) with third party solution providers, Active Directory Federated Services (ADFS) authentication for Los Angeles County Sheriff’s Department and Los Angeles Courts.
♦ City of Alhambra Fire Department – Completed conversion from on premises Exchange and version-based office productivity suite to Microsoft 365, including Active Directory replication to Azure
♦ West Cities Police Communications (West-Comm) - Completed conversion from on premises Exchange and version-based office productivity suite to Microsoft 365, including Active Directory replication to Azure.
♦ City of Alhambra Police Department – In progress conversion from on premises Exchange and version-based office productivity suite to Microsoft 365, including Active Directory replication to Azure, Active Directory Federated Services (ADFS) authentication for Los Angeles County Sheriff’s Department.
♦ City of Los Alamitos – in progress conversion to Microsoft 365, Azure and Exchange portions completed; in progress for office productivity, SharePoint, and OneDrive.

Administration
SDI performs conversions/migrations for Microsoft 365 as well as ongoing management of existing 365 environments. Typical administration begins with the information management policy development and configuration for new environments, or policy assessment in collaboration with organizational stakeholders for existing environments. Examples of policy considerations vary widely from on-premises only office productivity suites. Examples of policies applicable to SharePoint and OneDrive are provided below. Similar controls are configurable within the Exchange and Teams administrative sections of the Microsoft 365 portal.

Data Sharing – control sharing at the organization level. ♦ Anyone – Users can share files and folders using links that don’t require sign-in. ♦ New and existing guests – Guests must sign in or provide a verification code. ♦ Existing guests – Only guests already in your organization’s directory. ♦ Only people in your organization – No external sharing allowed.

Access control – Restrict how users are allowed to access content. ♦ Unmanaged devices – Restrict access from devices that aren’t compliant or joined to a domain. ♦ Idle session sign-out – Automatically sign out users from inactive browser sessions. ♦ Network location – Allow access only from specific IP addresses. ♦ Apps that don’t use modern authentication – Block access from Office 2010 and other apps that can’t enforce device-based restrictions.

While more granular controls may be configured to allow differing levels of sharing for individuals or organizational groups, these are all important considerations that should be included within a comprehensive data management policy.

SDI configures municipal client hosted environments within the Microsoft 365 Government Community Cloud (GCC) which provides compliance with federal requirements for cloud services, including FedRAMP High, Defense Federal Acquisition Regulations Supplement (DFARS), and requirements for criminal justice and federal tax information systems (CJI and FTI data types).

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SDI typically recommends municipal clients elect the use of Microsoft’s Office 365 Government G3 licensing that includes the following applications and services:

Office Applications Services
♦ Word ♦ Exchange
♦ Excel ♦ OneDrive
♦ PowerPoint ♦ SharePoint
♦ Outlook ♦ Teams
♦ Publisher
♦ Access
Alternative licensing models include the G5 level which adds audio conferencing, cloud-based PBX, and other advanced features. When practical, SDI may also recommend cost saving initiatives such as G1 licensing for web-only email for limited-use accounts while still retaining access to the above-listed services.

Integration of these services into an organization is typically coupled with Azure Active Directory wherein local Active Directory accounts are synchronized with Microsoft’s cloud-based Azure database, thereby supporting identity management for hosted services, single sign on (SSO) for third-party application authentication, and multifactor authentication.

Services features and policy development is typically performed in a collaborative manner, often necessitating examination of the data sharing capabilities within the 365 application and services lineup.

Quality Control Management
Quality Control Management (SDIAlign) is the discipline that ensures the City of San Marino’s expectations are met effectively and completely through people, processes, and tools. SDI will accomplish this by employing proven Quality Management processes so that Task Order and ongoing maintenance goals are achieved on time and within budget. SDI and the City of San Marino’s team members will be assigned specific Quality Assurance roles and will participate in status meetings, reviews of status reports, issue logs and SLA reports, and the development of support improvement recommendations. When appropriate, SDI will utilize Quality Audits, Pareto Analysis, and Review/Rework cycles, to attain the highest quality standards. SDI has qualified Quality Advisors that will work with the project team and the PMO to ensure that issues are addressed early in the process and resolved before they negatively impact services.

SDI maintains a full-time quality management team staffed with Quality Advisors with Project Management Institute-certified Project Management Professionals (PMP) experienced in quality control for projects and support contracts. During projects and support contracts, they monitor the procedures and process and advise team members on best practices. The quality management procedures and processes are based on industry best practices and are implemented with defined deliverables and review procedures based upon the length of the project or support contract. The quality advisor, in conjunction with the support contract manager, determines the frequency of the quality reviews. At each agreed upon interval of the project or support contract, a deliverable is produced and submitted to a peer review process by various stakeholders and the personnel responsible for standards and quality assurance.

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could slip through the various support contract phases. SDI’s extensive review procedures eliminate most errors at their source and guarantee well-managed, well-monitored projects and support contracts.

Should it be required, independent quality audits are conducted. Should scorecards from regularly scheduled reviews indicate the need for it, intervention, diagnosis, corrective action, and monitoring are delivered to correct any non-compliance to quality standards set for the support contract.

Quality Management
SDI will collaborate to manage the completeness and correctness of deliverables. SDI will include in each Task Order project work plan activities focused on quality assurance and quality control. ♦ Quality Assurance: Quality Assurance includes the processes related to satisfying the City’s quality expectations. In addition, quality assurance provides continuous improvement through feedback from the City to SDI. Regularly scheduled status meetings and quality reviews will provide the City with the opportunity to give SDI feedback on their performance. ♦ Quality Control: Quality Control is used to verify that support deliverables are of acceptable quality and that they meet the completeness and correctness criteria. Quality Control includes activities to monitor specific test results, the quality and overall project deliverables, and to eliminate causes of unsatisfactory results.

Quality Management Tools and Techniques
Quality Audit/Project Review Execution/Reporting
Comprehensive, independent quality audits are conducted as necessary (for example due to significant non-compliance to quality standards) and may initiate intervention, diagnosis, corrective action, and monitoring.

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Quality Review
The Quality Review leverages the experience of our most senior professionals in the form of leadership, coaching, and mentoring. The goal is to help the project teams fully realize the benefits of following generally accepted project management standards by:
♦ Providing proactive warning systems for problem identification prior to client impact ♦ Introducing Quality Advisors to a variety of engagement environments and management techniques with the opportunity to advise project teams on best practices. ♦ Identifying process-related problems/enhancements and communicating measurable action plans for resolution. Quality Advisors are in a good position to identify common process problems since they will have the most visibility across all our engagements.

Project Quality Planning, Assurance, Control, and Improvement Quality planning will start from the beginning of a project. Quality planning includes identifying which quality standards, techniques, and tools are relevant to the project and determining how to implement them.

Quality assurance includes the evaluation of overall project performance on a regular basis to provide confidence that the project will satisfy relevant quality standards.

Quality control involves monitoring specific project results to determine if they comply with relevant quality standards and identifying ways to eliminate causes of unsatisfactory performance.

Quality improvement includes analyzing the results of quality reviews and taking action to increase the effectiveness of the project to provide added benefits to the project stakeholders and customers.

Quality improvements generally require the preparation of project change requests or corrective action and will be handled according to procedures for overall change control.

SDIALIGN Program
Prioritizing Personal Connection to Ensure Client Success.

Buyers of technology today demand steady service - no interruptions, no delays, no excuses. SDI believes that the key to a sustainable, secure technology environment is a solid client-partner relationship, with open communication channels, honest feedback, and mutual respect.

To secure this level of trust, SDI has developed the SDIALIGN program. Our SDIALIGN Team meets with our client teams every quarter to collect feedback on our performance, reliability, and customer service.

SDI’s proactive SDIALIGN program is structured to identify issues before problems occur, with our SDIALIGN Team providing independent and unbiased oversight and results reporting on client engagements. The SDIALIGN Team is empowered to enforce SDI’s commitment to Presence in every client engagement.

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The SDIALIGN Program includes:
♦ Case studies for key accounts, showing measurable milestones - what gets measured gets done. ♦ Face-to-face visits with clients to review project plans. ♦ Detection of process-related issues and communicating measurable action plans for resolution. ♦ Feedback to SDI senior management, who are committed to resolving client issues and objections. ♦ Improvement plan if a skills gap were to be identified. ♦ Notification to client of issue resolution and follow-up activities. ♦ A direct channel to the Office of the Chief Executive Officer that encourages SDI clients to express concerns.

Other Services and Innovative Solutions
Examples of other innovative solutions SDI’s IT service division has deployed at other municipalities include:

• Virtual Desktop Infrastructure (VDI) – As many municipal clients have already adopted VMware virtualization for server operating systems, VDI “thin client” technology may be a natural progression towards streamlined desktop management, minimization of help desk support calls, and reduction of long-term asset refresh expenditures.
• Cloud Computing – leverage potential cost-saving aspects of converting portions of the client’s IT environment to cloud computing technologies, leveraging advancements made by Microsoft in Office 365 and SharePoint back-end office platforms.
• Virtual Private Network (VPN) – estimate potential cost-saving aspects of converting any existing T1 or private circuits to VPNs across lower-cost internet service providers. • Disaster recovery – design and implement enhanced backup and disaster recovery processes to include a hybrid platform leveraging both local and government-only cloud storage solutions. • End of life – assess and migrate/decommission/upgrade end-of-life hardware and/or software to improve resiliency and security posture.
• Network enhancements – evaluate the benefits of migrating server and network infrastructure to a 10Gb+ data bandwidth if not already in place.
• Virtualization migration/upgrades – virtualize EOL physical servers and upgrade existing virtualization environments to current versions to better leverage fault-tolerant features for critical services.

Although SDI is highly experienced at deploying innovative solutions, technology is not deployed for technology’s sake, but rather to provide enhanced citizen service, save operational costs or to provide measurable productivity enhancements for employees.

Although the examples of innovative technologies provided above have been successful for other SDI clients, a thorough evaluation of the City’s working IT environment will reveal which innovations are appropriate for the City of San Marino.

It is an important distinction to understand, SDI does not recommend technology platforms for consideration or purchase based on reciprocity. We use the technology we recommend at client locations simply because it may be the best-suited product at the time. SDI does not resell or distribute any technology platforms but will assist our clients by sourcing multiple bids/quotes when requested.

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We look forward to continuing to work alongside the City of San Marino management with short and longterm IT planning, project management, implementation, and deployment of advanced computing technologies, while simultaneously assisting the City in building an infrastructure suited for growth and sustainability into the future.

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Section 3 Annual Contract Cost
Managed Services Information Technology Solution
A new client Engagement and Transition (E&T) fee will be charged at the one-time rate of $5,250.00. The Monthly ongoing Commitment Rate for 35 hours/week on-site/remote is $15,210.00. Traditionally, the E&T fee enables the SDI team to apply additional key resources for the first 100 days of a new client engagement contract as described in SDI’s RFP proposal, Section F, Approach, Timing, and Work Program of Engagement.

The table below shows our monthly costs. Please refer to the Staffing Plan section below, for an explanation of the personnel positions and hours dedicated to the managed services solution options.

Item Cost
Engagement and Transition fee (one-time) $5,250.00
Monthly ongoing Commitment Rate, 35 hrs./wk. One IT
Technician – 26 hrs./wk. on-site/remote, High-Level
resources – 9 hrs./wk. on-site/remote.
$15,210.00 monthly
$187,770.00 Year 1, Includes one Time
E&T Fee
Kasyea – Ticketing and Agent Included
Auvik – Essential License Included
IronScales IT Security Learning Management System Included SentinelOne Endpoint Security Software Included
DUO 2FA Included
Cloud Object Storage for Storage Snapshots $28 per TB per month - *additional option Cloud Backup Storage $99 per TB per month - *additional option The cost proposal table above was prepared using a combination of the resources identified in the hourly rate table below. In the event additional resources are requested or required for mutually agreed upon special projects, the hourly rates in the SDI Hourly Rate Table below will be applied.

Below is a five-year, annualized cost for our services incorporating a typical 5% annual increase. 35 Hours per week On-Site/Remote
Year 1 (2024) Year 2 (2025) Year 3 (2026) Year 4 (2027) Year 5 (2028) $187,770.00 $191,644.00 $201.226.00 $211,287.00 $221,852.00 PAGE 281 of 589
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SDI Hourly Rate Table
Please use this table for determining staff augmentation hourly rates.

Position
Hourly
Rate
Technician (Level I) $74.00
Technician (Level II) $78.00
Technician (Level III) $87.00
System Engineer I $98.00
System Engineer II $112.00
System Engineer III $121.00
Software Developer I $95.00
Software Developer II $115.00
Software Developer III $137.00
SQL DBA $139.00
GIS Analyst $124.00
Project Manager $146.00
Network Engineer $148.00
Certified Security Specialist $165.00
Software Architect $167.00
Subject Matter Expert $185.00
vCIO $225.00
Annual adjustments to these hourly rates will incorporate a 5% increase. SDI retains the right to increase hourly rates in accordance with the U.S. Bureau of Labor Statistics, Los Angeles – Long Beach – Anaheim all urban consumers CPI table. At the time of the contract’s yearly renewal date, the CPI for the previous 12-months will be utilized to determine the CPI. If the CPI is greater than 5%, SDI may increase rates to match the CPI increase for the given period.

Hours/Days When Normal Service is Available:

SDI will match the City of San Marino’s normal service hours Monday through Thursday, 7:00 AM – 5:00 PM and Friday 7:00 AM to 11:00 AM. SDI will provide on-site personnel based on the City’s preferred days of service. Additional days for special projects or meetings, are to be agreed upon by both parties via a Scope of Work and billed using the rate table above. We also understand the need for emergency service 24 hours a day, 7 days a week, and there is no additional rate for such services. The same hourly rates apply to any time of day, or day of the week, including holidays and declared emergencies.

Travel/Trip Charges (if any):

None
Rate(s) for After Hours Work:

The same hourly rates apply to any time of day, or day of week, including holidays and declared emergencies.

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Rate(s) on Weekends and Holidays:

Same as above.

Any alternate pricing structures (such as block of hours):

Hours may be purchased as a block for specified projects.

Staffing Plan
35 Hours/Week – 140 Hours/Month On-Site or Remote
SDI will provide 1 (one) Level-II Technician on-site/remote at the City of San Marino, 26 (Twenty-Six) hours per week each – 104 (One Hundred Four) hours per month (avg.), excluding 10 (ten) typically observed holidays and occasional provisions for 2 (two) weeks of SDI employee paid time off (PTO), for a total of 1,248 (One Thousand Two Hundred Forty-Eight) hours per year. In the event services are required on days that fall within this holiday/PTO provision, adequate staffing will be provided and SDI employee holiday/PTO usage will shift to alternate days to accommodate the City’s needs but will not exceed the 1,248 (One Thousand Two Hundred Forty-Eight) hour cap unless mutually agreed upon.

SDI will provide high level resources (account manager, system engineer, network engineer, and security specialist) as needed for a cumulative total of 9 (Nine) hours per week, 36 (Thirty-Six) hours per month, 432 (432) hours annually, on-site or remote.

The Level-II Technician and high-level resource hours total for this option equals 35 (Thirty-Five) hours/week, 140 (One Hundred Forty) hours/month, 1680 (One Thousand Six Hundred Eighty) hours/year.

Kaseya, Duo, SentinelOne, IronScales, and Auvik (Essential License) included in this option, a $22,284.00/year value.

Help Desk Support during City Hall normal business hours is included in the managed services quote. We have many municipal clients and we understand the need for 24/7/365 support in cases of emergencies.

We are on call 24-hours a day, 7-days a week, SDI is committed to providing the outstanding services expected by our clients.

The primary role of the technicians is to build and maintain a trusting relationship with the City employees while providing daily technical support, user guidance, O&M, and develop and maintain system documentation. Moreover, the technicians will serve asthe first line for problem documentation, analysis, troubleshooting, and serve as a liaison to additional SDI resources as needed.

The account manager, Phil Danie, will serve as the general point of contact for project planning, specialized resource allocation, and escalation.

Together with the City of San Marino, SDI will help to maintain a responsive problem resolution system and build forward looking, comprehensive technology plans and policies with the City’s stakeholders.

SDI is open to alternative staffing options based on requirements specified by the City.

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Section 4 Onboarding Process and Timeline
In the case of the City of San Marino, SDI’s transition to the City’s IT managed services provider should be a seamless process. We suggest that our assigned technician shadow the City’s contract IT personnel for an agreed upon interval so that all pertinent institutional knowledge is shared with our personnel.

The primary role of the technician is to build and maintain a trusting relationship with the City employees while providing daily technical support, user guidance, O&M, and develop and maintain system documentation. Moreover, the technician will serve as the first line for problem documentation, analysis, troubleshooting, and serve as a liaison to additional SDI resources as needed.

SDI will provide a virtual Chief Information Officer (vCIO) to provide strategic planning and oversight of the City’s IT resources. The vCIO will identify industry trends for the delivery of Information Technology Managed Services and identify solutions to support the City’s strategic goals and objectives. The vCIO’s goal will be to strengthen the cost-effectiveness, quality, and productivity of the City of San Marino’s IT services using current technological expertise, including maintenance of the City’s computer network, planning for short-term and long-term IT goals, and the provision of excellent customer service.

SDI will provide a blend of resources with exceptional knowledge and experience providing all-inclusive IT support for governmental agencies. This blend of resources is comprised of a virtual Chief Information Officer (vCIO), Network Engineer, Systems Engineer, Certified Security Specialist, Field Technician, and Account Manager. SDI can also provide additional resources such as Project Manager, Database Administrator, Software Engineer, GIS Analyst, and Subject Matter Experts as needed.

First 100 Days - Implementation Project Plan and Timeline for Transition of Services from Current Provider.

As an established IT Managed Service Provider specializing in municipal and public safety IT operations, SDI begins all new client engagements with a multi-step approach designed to identify the current state of an organization’s IT operations. This process assists the SDI team in the development of an agreedupon desired state and to produce a gap analysis to identify a path to transition from the current to the desired state. This approach is an essential component of new client engagement as it is an opportunity to discover overlooked vulnerabilities, recommend updated practices, policies, and procedures, and to establish a new baseline of security and risk.

In the case of the City of San Marino, the transition from incumbent to SDI should be a seamless process.

We propose shadowing the incumbent for an agreed upon interval so that all pertinent institutional knowledge is passed onto our personnel in a professional and efficient manner.

As many organizations remain dependent on legacy operating systems and/or applications, SDI’s initial assessment will evaluate the entire enterprise, identify items that are susceptible to exploitation, recommend compensating controls to help reduce risk, and make recommendations for modernization.

On the following page is a Project Timeline (Work Plan) of the first four-weeks action items for the IT Assessment and transition from the incumbent provider. The duration of performance for delivery of the Comprehensive Technology Plan and Policy is 45 days after the IT Assessment is completed.

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Week 1
♦ Engage the City’s staff and current service provider to ensure maximum knowledge transfer ♦ Evaluate current service provider’s remote access and reconfigure in accordance with the City’s preference
♦ Consult with City representatives/stakeholders to record observed obstacles and identify future IT goals and objectives
♦ Perform discovery scan and produce preliminary hardware/operating system inventory ♦ Identify highly vulnerable desktop assets and begin emergency risk mitigation planning ♦ Provide week-one report to the designated City representative that includes:
o Preliminary observations
o Preliminary inventory report
o Request for approval to proceed with desktop emergency risk mitigation actions Week 2
♦ Begin desktop emergency risk mitigation actions
♦ Identify highly vulnerable server assets and begin emergency risk mitigation planning ♦ Begin deployment of the host-based agent(s) to perform continuous monitoring and improve the accuracy of:
o Hardware inventory and operating system identification o Applications and associated versions, patch levels, and document deficiencies ♦ Provide week-two report to the designated City representative that includes:
o Progress of desktop emergency risk mitigation actions o Updated and expanded preliminary inventory report
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Week 3
♦ Continue the desktop emergency risk mitigation actions ♦ Continue assessment of server assets and emergency risk mitigation planning ♦ Evaluate network configuration and security and begin risk mitigation planning ♦ Continue deployment of the host-based agent(s) to perform continuous monitoring and improve the accuracy of inventory
♦ Provide week-three report to the designated City representative that includes:
o Progress of emergency risk mitigation actions
o Updated and expanded preliminary inventory report
o Request for approval to proceed with server asset emergency risk mitigation actions Week 4
♦ Continue desktop emergency risk mitigation actions
♦ Begin server asset emergency risk mitigation actions
♦ Begin limited assessment of virtualization platform(s) ♦ Provide month-end report to the designated City representative that includes:
o Summary of desktop, server, and network risk-mitigation actions o Complete inventory report
o Summary of help desk tickets including response time and final disposition Long-term IT Assessment and IT Business Strategy Development The primary goal is the deliverable of a current Technology Assessment and the development of a longterm IT Business Strategy. It is during the first 4-weeks of evaluation, risk analysis, emergency mitigation actions, updates, and patching that form the foundation of the IT Assessment and Business Strategy. The results of the tasks outlined in the previous graph will work in tandem with SDI engineers as they provide ongoing IT generalized support and prepare the Comprehensive Technology Plan and Policy. Much of the discovery will naturally follow as a result of the IT supportservices offered along with findings during daily operations.

Comprehensive Technology Plan and Policy
Approximately 75 days after SDI initiates the system study for the City of San Marino, SDI will produce and deliver a comprehensive report for City management that includes the baseline snapshot information, summary of stakeholder discussions, and recommendations for short-term corrective measures and longterm solutions targeting optimal IT operations to meet organizational objectives.

In summary, this report will help support the development of a guide for system management services and serve as supporting documentation to develop the IT Technology Assessment and Strategic Business Plan. Note that recommendations may also include reduction or expansion of specific hardware/software platforms, modifications to currently employed technologies, and augmentation/training for staff.

The report will enable SDI management and City leadership to develop a Project Plan and Outline (PPO).

The PPO will be the baseline for the overall project engagement and will identify resources required from both sides. Specific milestones will be determined through which stakeholders can assess project progress, mitigate identified issues needing immediate attention, help manage organizational change, and manage change orders as necessary. Note that initial corrective measures will provide the decommissioning of unsupported platforms as a security measure.

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Section 5 Qualification and References
SDI Presence LLC (SDI)
SDI is an IT consultancy and managed services provider (MSP) that leverages its strong team presence to advance our clients to a secure digital enterprise. With a 25+-year corporate resume, SDI delivers strategic managed services, IT
consulting, and hybrid infrastructure solutions to optimize our clients’ technology environments. SDI is a certified Minority Business Enterprise (MBE), with a portfolio of clients that includes some of the nation’s largest airports, utilities, commercial real estate portfolios, and government agencies.

SDI delivers a deep technical presence through a local
delivery model to achieve customer confidence and success.

SDI is headquartered in Chicago, Illinois with regional offices in Anaheim, Los Angeles, and Sacramento, California; Atlanta, Georgia; and Dallas Fort-Worth, Texas. We have over 300 employees. Our employees average 15 years of experience.

Unmatched Technical & Industry Expertise
SDI teams bring executive presence and diverse perspective to our clients’ most complex projects. Our team of professionals bring previous experience gained from running large IT operations and multimilliondollar IT projects.

Together, the SDI team has an extensive history of running complex, 24×7 mission-critical IT environments that demand both a broad and deep IT expertise and unwavering commitment to performance excellence – from a comprehensive IT Assessment for a local municipality, to enterprise cybersecurity remediation at a utility, to a 24x7x365 IT managed services program across a large city transit authority. We bring industry subject matter expertise, technical certifications and methodologies, and a desire to make a positive impact at our clients.

Presence. For Our Clients, Colleagues and Community.

Our commitment to presence fosters confidence and connectivity with value creation that is unmatched in our space.

Every day, the SDI team’s presence is demonstrated by constantly and consistently being:
♦ Focused: in giving our full attention and energy to our shared goals and the task at hand.
♦ Alert: of industry trends, technical opportunities, and potential risks.
♦ Mindful: as we listen, engage and communicate – to inform our decisions and better outcomes.
♦ Invested: professionally, personally, and economically in our work.

SDI Snapshot:
• Headquartered in Chicago
• 25+ Years IT Consulting/Managed
Services Experience
• 300+ Business Professionals
• Financial Stability:
- 2022 Revenue - $86M
- Backed by Private Equity Firm -
Abry Partners with $5B under
management
• Corporate Plus® Member of the
National Minority Supplier
Development Council (NMSDC)
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♦ Local: in our physical energy to build deep relationships and provide outstanding support. ♦ YOU: taking the time to care for ourselves and our significant others.

Industry Certifications
SDI holds an extensive range of certifications from industry associations, leading product manufacturers, and government agencies. Combined with a solid track record of successful system implementations and impressive client portfolio, our accreditations speak to our ability to equip your organization with exceptional technology.
♦ ACMP (Association of Change Management Professionals) ♦ Agile Certified Practitioner
♦ CompTIA: A+, I-Net, Network+, Project+, Security+, Server+ ♦ Certified Business Analyst Professional (CBAP)
♦ Certified Computer Professional (CCP)
♦ Certified Information Systems Auditor (CISA)
♦ Certified Information Systems Security Professional (CISSP) ♦ Certified Public Accountant (CPA)
♦ Committee on National Security Systems certifications ♦ Geographic Information Systems Professional (GISP)
Manufacturer Certifications
♦ Check Point Certified Security Engineer (CCSE)
♦ Cisco Certified Internetwork Expert – Routing and Switching (CCIE) ♦ Cisco Certified Network Associate – Data Center (CCNA) ♦ Cisco Certified Network Professional (CCNP)
♦ Citrix Certified Professional – Networking (CCP-N)
♦ Dell Certified SE
♦ Firetide Mesh Engineer
♦ Genetec Omnicast Certification
♦ Microsoft Certified Professional (MCP)
♦ VMware Certified Associate
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List of Staff Certifications
Certification
No. of Staff with
Each Certification Certification
No. of Staff with
Each
Certification
AWS SAA 1 IIT Excel 2
Business Analyst Cert 3 IIT SQL 2
Certiport IC3 Core 1 InfoSec CCFE 1
CIJS Level 4 Security 4 ISACA CISA 2
Cisco CCDA 6 ISC2 CISSP 3
Cisco CCDP
4 ITIL Release and
Control 1
Cisco CCIE R & S 3 ITIL v3 Foundation 13
Cisco CCIE R & S
1 ITIL v3 Intermediate
CSI 1
Cisco CCNA Data Center 1 ITIL v3 Intermediate SD 1
Cisco CCNA General
11 ITIL v3 Intermediate
SO 1
Cisco CCNA R & S 6 ITIL v3 Intermediate SS 1
Cisco CCNA Security 5 Juniper JNCIS-FWV 1
Cisco CCNA Voice
1 Kronos TeleStaff
Accrd1 2
Cisco CCNA Wireless
3 Kronos TeleStaff
Accrd2 3
Cisco CCNP 6 Kronos Timekeeper 1
Cisco CCNP R&S 5 LEAN Mfg Prod 1
Cisco CCNP Security 1 Lean Six Sigma LSSBB 5
Cisco DCUCS 1 Lenel Cert Assoc 1
Citrix CCA 1 Microsoft Azure Admin 2
Citrix CCAA 1 Microsoft MCAS 1
Citrix CCA-N 1 Microsoft MCDST 1
Citrix CCEA 1 Microsoft MCP 6
Citrix CCEE 1 Microsoft MCSA 5
Citrix CCP-N 1 Microsoft MCSE 6
Citrix CCP-V
1 Milestone XProtect
Advncd 4
Citrix CCSE 1 Novell CNE 2
CMRP-Main & Reliability 1 Oracle 9 DBA 1
Compellent Storage Admin
2 OSHA 30hr
Construction 2
CompTIA A+ 19 Palo Alto Cert Ntk 1
CompTIA Network+ 3 PMI ACP 1
CompTIA Security+ 3 PMI PMP 20
CRL -Reliability Leader
2 Prosci Change
Management 2
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Dell DCSE
1 Rutgers Certifd Govt
CIO 1
Dell Desktops 4 SANS GAIC 1
DePaul Univ PM Cert 1 SCRUM CSM 4
EMC InfoStorage Assoc v2 1 SCRUM CSPO 1
Epic ECSM 1 SMRP CMRP 1
Firetide DFS Cert 3 SNIA SCSE 1
Firetide Intro Wireless 1 SNIA SCSP 1
Fluidmesh Fluidity Lvl 3 1 SNOW ADMIN 4
FluidMesh Level 3 Inst 2 SNOW IMP-HR 1
HP Desktop/Laptop Hw 2 SNOW IMP-ITSM 3
HP Printers 2 SPLK Core Power User 1
IIBA CBAP 1 SPLK Core User 1
References
SDI focuses on helping public sector clients assess, plan, implement, and manage complex business technology. SDI brings leadership, executive presence, and diverse perspective to our clients’ most complex projects. SDI’s consultants bring experience gained from running large IT operations and multimillion-dollar IT projects and having held prior positions with Tier One consultancies. Our consultants include former CIOs, CFOs, Utility General Managers, Community Development Directors, and Assistant City Managers. SDI builds on these gained insights when working with our clients, taking the time to understand a client’s specific situation and needs, developing robust plans to address those needs within the situational boundaries, and delivering solutions that are on specification, on time, and within budget.

Reference 1
Client: City of Arcadia
Start/End Date: 2017 to Present
Contact: Wilson Luo – IT Manager
Phone Number: (626) 574-5489
Email: [email protected]
Project Cost: $432,000
Project Description
SDI provides annual IT support for all City departments. A sampling of projects includes firewall upgrades at both the City and Police Department, each site with redundant application-layer firewalls, interconnected and configured to leverage modern information security capabilities. Migrated from legacy on-premises email and office productivity software to Microsoft’s Office 365 for US Government Community (GCC) services. Modernized virtualization platforms and added capacity-optimized all-flash storage arrays to provide reliable high-speed access to critical data systems. Deployed industry-leading backup and recovery solutions to ensure continued availability of data, leveraging both on-site and cloud-based repositories. Established Active Directory Federation Services (ADFS), providing secure Single Sign-On (SSO) capabilities with trusted partner organizations (e.g., Los Angeles County Sheriff’s Department, Los Angeles Courts). Designed and configured network DMZ to segment public-facing data/services from internal resources. Performed desktop asset refresh throughout all City departments and decommissioned unsupported server equipment and operating systems. GIS services include O&M of ArcGIS server, ArcGIS desktop, and collaboration with Los Angeles County GIS team for shared services.

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Reference 2
Client: City of Laguna Beach, Public Safety
Start/End Date: 2007 to Present
Contact: Kristen Berry
Phone Number: (949) 497-0399
Email: [email protected]
Project Cost: $1,000,000
Project Description
SDI provides annual IT support for the Police Department, Fire Department, and Marine Safety. SDI provides a 24/7/365 Help Desk, daily on-site technician(s), emergency call back and additional, asneeded IT Support from highly trained and experienced SDI team members such as system engineers, network engineers, infosec specialists and project management. GIS Services include installation, maintenance, and support of ArcGIS platform. A sampling of projects includes CAD/RMS system deployment, dispatch center remodel, 911 phone system replacement, Emergency Operations Center setup, network infrastructure upgrades, computer deployments, MDC replacement, and mobile video system replacement. One notable project was an extensive city-wide closed-circuit video surveillance solution utilizing secure Wi-Fi, and fixed network assets, with all feeds channeled to a highly responsive back-end storage and retrieval solution. The end result provides the local police and fire department with high definition, pan-tilt-zoom (PTZ) cameras with the ability to monitor, record, and provide video evidence for the downtown and rural fire hazard areas around the city perimeter.

Reference 3
Client: City of Los Alamitos
Start/End Date: 2011 to Present
Contact: Ron Noda – Director of Development Services
Phone Number: 562-431-3538, ext. 500
Email: [email protected]
Project Cost: $100,000
Project Description
SDI provides annual IT support for all City departments. A sampling of projects include CAD/RMS installation, configuration, and deployment; city-wide Wi-Fi deployment; migration from physical to virtualized server environment; implemented Veeam virtual backup solution; deployed capacityoptimized all-flash network storage; Laserfiche deployment; VOIP implementation; Emergency Operations Center upgrades; Incode finance software upgrades; migration to Exchange Online.

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Reference 4
Client: City of Glendora
Start/End Date: 2022 to Present
Contact: Sam Robbin – IT Manager
Phone Number: (626) 852-4888
Email: [email protected]
Project Cost: $2,032,000
Project Description
SDI provides IT support for all City departments. In the short time SDI has been involved, the number of open helpdesk tickets has dramatically decreased while the response times have increased. SDI is also in the process of redesigning the City’s network layout while improving security. SDI is also in the planning stages of reducing hardware and budget while increasing reliability. Additional projects include disaster recovery redesign, ERP implementation, deployment system for Police MDCs and desktops, and CAD/RMS upgrades.

Reference 5
Client: City of La Verne
Start/End Date: 2019 to Present
Contact: J.R. Ranells
Phone Number: (909)596-8710
Email: [email protected]
Project Cost: $1,402,440
Project Description
SDI provides annual IT support for all City departments. A sampling of projects includes firewall upgrades at both the City and Police Department, each site with redundant application-layer firewalls, interconnected and configured to leverage modern information security capabilities. Migrated from legacy on-premises email and office productivity software to Microsoft’s Office 365 for US Government Community (GCC) services. Modernized virtualization platforms and added capacity-optimized all-flash storage arrays to provide reliable high-speed access to critical data systems. Deployed industry-leading backup and recovery solutions to ensure continued availability of data, leveraging both on-site and cloud-based repositories. Established Active Directory Federation Services (ADFS), providing secure Single Sign-On (SSO) capabilities with trusted partner organizations. Designed and configured network DMZ to segment public-facing data/services from internal resources. Performed desktop asset refresh throughout all City departments and decommissioned unsupported server equipment and operating systems.

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Reference 6
Client: City of Westminster
Start/End Date: 2022 to Present
Contact: Darin Lenyi – Chief of Police
Phone Number: (714) 548-3708
Email: [email protected]
Project Cost: $1,000,000
Project Description
SDI provides IT support for all City departments, augmenting organizational IT staff for routine operations, collaborating with outside vendors for enterprise applications, and in a consultancy capacity for special projects. A sampling of notable activities includes assessment of existing layered information security systems and the development of recommendations to improve security posture; reviews of server virtualization infrastructure and development of upgrade/modernization procedures that support continuous system availability; establish multi-factor authentication solution including special provisions for Police Department critical bypass events; assist with ongoing virtual desktop infrastructure (VDI) modernization initiatives and recommend best-value hardware replacement equipment; test/validate existing disaster recovery solution and implement configuration adjustments as needed; develop and deploy Windows Deployment Services (WDS) solution to streamline asset recovery/refresh initiatives; establish Microsoft System Center Configuration Manager (SCCM) for application deployment; redesign Active Directory and Group Policy settings to ensure adherence to generally accepted best practices. Ongoing projects include collaboration with existing third-party enterprise resource planning (ERP) and enterprise application solution providers to modernize legacy systems and better leverage newly available system performance enhancements; custom software development initiatives to enhance public reporting systems to better align with regulatory authorities and public disclosure requirements; implementation of continuous monitoring and periodic vulnerability assessment solutions.

Municipal Client Highlights
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Proposal to City of San Marino for
Information Technology Management Services
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Trusted by Neighboring Communities
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Appendix A West Coast Client List
Below is SDI’s West Coast client list.

IT Strategic PlansIT AssessmentsIT Policies & ProceduresProjectManagementIT GovernanceDisaster RecoveryPlanningSystem Selection& ProcurementsOther ManagementConsulting Municipalities
Alameda, CA   
Alhambra, CA  
Anaheim, CA   
Arcadia, CA  
Belmont, CA 
Beverly Hills, CA   
Branson, MO   
Burbank, CA  
Burlingame, CA  
Carson, CA 
Carson City, NV    
Chino, CA  
Chino Hills, CA   
Concord, CA  
Coronado, CA    
Costa Mesa, CA 
Cupertino, CA  
Davis, CA  
El Segundo, CA  
Fairfield, CA       
Fontana, CA 
Fremont, CA   
Fresno, CA    
Galt, CA        
Glendora, CA  
Gilroy, CA     
Glendale, CA     
Half Moon Bay, CA  
Huntington Beach, CA    
Indio, CA  
Industry, CA 
Irvine, CA     
La Quinta, CA   
Laguna Beach, CA  
La Verne, CA  
Long Beach, CA   
Los Angeles, CA  
Los Banos, CA  
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October 25, 2023 Page 46 IT Strategic Plans IT Assessments IT Policies & Procedures Project Management IT Governance Disaster Recovery Planning System Selection & Procurements Other Management Consulting Malibu, CA   
Manhattan Beach, CA     
Merced, CA   
Millbrae, CA 
Napa, CA    
Newport Beach, CA   
Novato, CA    
Ontario, CA   
Orange, CA     
Oxnard, CA  
Pasadena, CA  
Paso Robles, CA   
Petaluma, CA 
Pismo Beach, CA   
Pleasant Hill, CA 
Rancho Cordova, CA   
Rancho Cucamonga, CA  
Rancho Palos Verdes, CA    
Redlands, CA 
Redwood City, CA    
Rohnert Park, CA    
San Luis Obispo, CA    
San Rafael, CA      
San Ramon, CA  
Santa Barbara, CA 
Santa Clara, CA       
Santa Cruz, CA     
Santee, CA  
Scottsdale, AZ 
Stockton, CA     
Suisun City, CA  
Sunnyvale, CA 
Vacaville, CA 
Ventura, CA    
Visalia, CA   
Vista, CA     
Walnut Creek, CA    
Watsonville, CA    
West Covina, CA   
West Hollywood, CA   
Yucaipa, CA 
Special Districts
Central Contra Costa Sanitation District       
Chino Valley Independent Fire District   
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October 25, 2023 Page 47 IT Strategic Plans IT Assessments IT Policies & Procedures Project Management IT Governance Disaster Recovery Planning System Selection & Procurements Other Management Consulting Citrus Heights Water District 
Coachella Valley Water District  
Cosumnes Community Services District  
Cucamonga Valley Water District 
Delta Diablo Sanitation District   
East Valley Water District  
Eastern Municipal Water District 
Elsinore Valley Municipal Water District  
Helix Water District   
Lake Arrowhead Community Services 
Las Virgenes Municipal Water District    
Los Angeles County Employees Retirement 
Monterey Regional Water P.C.A.  
Moulton Niguel Water District       
North Tahoe Public Utilities District  
Port of Los Angeles  
Rancho California Water District    
Riverside Co. Trans. Commission 
Sacramento Area Sewer District 
Sacramento Metropolitan Fire District  
Sacramento Municipal Utility District 
San Joaquin Council of Governments 
San Bernardino County Fire 
Santa Clara County Fire Department  
Santa Clara County Housing Authority  
Santa Clara Valley Water District 
Silicon Valley Clean Water 
Silicon Valley Power    
Solano County Transit (SolTrans) 
Southern CA Association of Governments 
South Tahoe Public Utility District     
West Basin Municipal Water District   
Zone 7 Water Agency  
Counties
Douglas County, Nevada  
El Paso County, Texas  
Lane County, Oregon  
Placer County, CA  
Riverside County, CA 
San Benito County, CA  
San Diego County, CA  
Santa Clara County, CA  
Sonoma County, CA  
State of California
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October 25, 2023 Page 48 IT Strategic Plans IT Assessments IT Policies & Procedures Project Management IT Governance Disaster Recovery Planning System Selection & Procurements Other Management Consulting Assoc. of Regional Center Agencies  
CA Correctional Health Care Services  
California Highway Patrol        
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Proposal to City of San Marino for
Information Technology Management Services
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Appendix B Legal Exceptions
The following pages provide legal exceptions from SDI Presence.

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Legal Exceptions to City of San Marino Finance Department Request for Proposals Information Technology Management Services
RFP Document Section Reference Proposed Contract Revisions Reasoning Sample
Professional
Services
Agreement

6.0 Reports, Information,
and Work Product
SDI respectfully requests to revise 6.2 to read as follows:

6.2. Unless the Parties agree in writing, all draft and final reports, documents, and other written material, and any and all images, ideas, concepts, designs including without
limitation any website designs, source code, object code, electronic data and files, and/or other media whatsoever created or developed by Consultant in the performance of this Agreement (collectively, “Work Product”) shall be considered to be “works made for hire” for the benefit of City. All Work Product and any and all intellectual property rights arising from their creation, including, but not limited to, all copyrights and other proprietary rights, shall be and remain the property of City without restriction or limitation upon their use, duplication or dissemination by City upon final payment being made. Consultant shall not obtain or attempt to obtain
copyright protection as to any of the Work Product
Notwithstanding anything to the contrary in the foregoing and for the purposes of clarity, the term “Work Product” shall not include any pre-existing Contractor or third-party intellectual property used and/or delivered in the performance of the services hereunder. Consultant hereby assigns to City all rights of ownership to the Work Product, including but not limited to any and all related intellectual property and proprietary rights The provision as written is not
clear as to ownership of SDI or
third-party pre-existing
intellectual property rights.

SDI requests that SDI and
SDI’s subcontractors and
vendors retain ownership of
any pre-existing intellectual
property rights used and/or
delivered to the City in the
performance of the Services
under this Agreement.

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2 RFP Document Section Reference Proposed Contract Revisions Reasoning that are not otherwise vested in the City pursuant to this paragraph.

Sample
Professional
Services
Agreement

13.0 Indemnification,
Hold Harmless, and Duty
to Defend
SDI respectfully requests the first sentence in Section 13.1 be revised to read as follows:

13.1. To the maximum extent permitted by law, Consultant shall defend, indemnify, and hold City, its officials, officers, employees, volunteers and agents serving as independent contractors in the role of city officials (collectively “Indemnitees”) free and harmless from any and all claims, demands, causes of action, costs, expenses, liability, loss, damage or injury, in law or equity, to property or persons, including wrongful death, in any manner arising out of or incident to any negligent acts or omissions or willful
misconduct of Consultant, its employees, its agents, or its subcontractors (collectively and/or individually, the
“Indemnitor(s)”) in connection with the performance of this Agreement, including without limitation the payment of all consequential damages and attorneys’ fees and other related costs and expenses, except for such loss or damage arising from the sole negligence or willful misconduct of City.

The indemnity provision as
written is too broad in that it
exposes SDI to liability for any
damages relating to SDI’s
performance of services, even
if such performance is in
complete compliance with the
Agreement. SDI wishes to
limit its claims for damages
caused by SDI’s negligent
performance of services.

Sample
Professional
Services
Agreement

13.0 Indemnification,
Hold Harmless, and Duty
to Defend
SDI respectfully requests Section 13.2 be revised to read as follows:

13.2. Consultant must obtain executed indemnity agreements with provisions identical to those in Section 13.1 from each and every Indemnitor subcontractor or any other person or entity involved by, for, with or on behalf of Consultant in the performance of the Services. If Consultant fails to obtain such indemnities, Consultant shall be fully responsible and
Adding Negligence, and willful
misconduct to Section 13.2 is
now identical.

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3 RFP Document Section Reference Proposed Contract Revisions Reasoning indemnify, hold harmless, and defend the Indemnitees from and against any and all Claims in law or equity, whether actual, alleged, or threatened, arising or claimed to arise out of, pertaining to, or relating to the negligent acts or omissions or willful misconduct of any Indemnitor Consultant’s
subcontractor, its officers, agents, servants, employees, subcontractors, materialmen, contractors, or their respective officers, agents, servants or employees (or any entity or individual that Consultant’s subcontractor an Indemnitor shall bear the legal liability thereof) in the performance of this Agreement, including the Indemnitees’ active or passive negligence, except for Claims arising from the sole negligence or willful misconduct of the Indemnitees, as determined by final arbitration or court decision or by the agreement of the Parties.

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PROFESSIONAL SERVICES AGREEMENT
between
The City of San Marino
2200 Huntington Drive
San Marino, CA 91108
&
SDI Presence LLC
200 E. Randolph Street, Suite 3550
Chicago, IL 60601
This Professional Service Agreement (“the Agreement”) is made as of 12/13/23 (the “Effective Date”), by and between SDI Presence LLC (“Consultant”), and the City of San Marino (“City”), a California municipal corporation, (collectively, “the Parties”).

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RECITALS
A. City desires certain professional services as specified in this Agreement.

B. Consultant represents that it is qualified and able to provide City with such services.

NOW THEREFORE, in consideration of the Parties’ performance of the promises, covenants, and conditions stated herein, the Parties hereto agree as follows:

AGREEMENT

1.0 Scope of Services

1.1. Consultant shall provide those services (“Services”) set forth in the attached Exhibit A.

1.2. Consultant shall perform all Services under this Agreement in accordance with the standard of care generally exercised by like professionals under similar circumstances and in a manner reasonably satisfactory to City.

1.3. In performing this Agreement, Consultant shall comply with all applicable provisions of federal, state, and local laws, ordinances, codes, and regulations applicable to Consultant and the Services it provides hereunder.

1.4. Consultant shall not be compensated for any work performed unless it is specified in Exhibit A or City authorizes such work in advance and in writing. Any work so authorized by City shall become part of the Services for purposes of this Agreement.

2.0 Term
The term of this Agreement shall commence as of the Effective Date and shall continue through 11/12/26 with an option for a two year renewal at the City’s sole discretion unless sooner terminated as provided in Section 5.0 of this Agreement.

3.0 Consultant’s Compensation
City will pay Consultant in accordance with the fee schedule set forth in Exhibit B but in no event will the City pay more than $580,640 for the term of the three year agreement and additional $433,139 for the term of the optional two year renewal, for a total not to exceed amount of $1,013,779. Any additional work authorized by the City pursuant to Section 1.4 will be compensated in accordance with the fee schedule set forth in Exhibit B, unless otherwise approved by City in writing. Pursuant to Section

02.06.05 of the San Marino City Code, this Agreement shall not be effective unless previously approved by the City Council if it is for professional services of greater than thirty thousand dollars ($30,000.00).

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4.0 Method of Payment

4.1. Consultant shall submit to City monthly invoices for all services rendered pursuant to this Agreement. Such invoices shall be submitted within 15 days of the end of the month during which the services were rendered and shall describe in detail the services rendered during the period, the days worked, number of hours worked, the hourly rates charged, and the services performed for each day in the period. City will pay Consultant all undisputed charges within 30 days of receiving Consultant’s invoice. City will not withhold any applicable federal or state payroll and other required taxes, or other required or authorized deductions from payments made to Consultant.

4.2. Upon 24-hour notice from City, Consultant shall allow City or City’s agents or representatives to inspect at Consultant’s offices during reasonable business hours all records, invoices, time cards, cost control sheets and other records maintained by Consultant in connection with this Agreement. City’s rights under this Section 4.2 shall survive for two years following the expiration or earlier termination of this Agreement.

5.0 Termination

5.1. City may terminate this Agreement at any time, at will, for any reason or no reason, after giving written notice to Consultant at least thirty (30) calendar days before the termination is to be effective.

5.2. Consultant may terminate this Agreement for cause in the event City fails to cure a default under this Agreement within thirty (30) days after Consultant has given City notice of such default.

5.3. Upon termination of this Agreement, Consultant shall cease all work under this Agreement and deliver to City all materials, reports, documents, notes or other written materials compiled through the last working day this Agreement is in effect. City shall pay Consultant for all services satisfactorily rendered through the last working day this Agreement is in effect; provided that in no event, including but not limited to termination, shall Consultant be entitled to receive more than the maximum compensation set forth in Section 3. Neither party shall have any other claim against the other party by reason of termination pursuant to this Section 5.0.

6.0 Reports, Information, and Work Product

6.1. Consultant shall deliver to City: (1) any reports on the status of the Services upon City’s request and in such time and in such form as City may require; and (2) all material furnished to Consultant by City upon City’s request and/or upon the expiration or termination of this Agreement.

6.2. Unless the Parties agree in writing, all draft and final reports, documents, and other written material, and any and all images, ideas, concepts, designs including without limitation any website designs, source code, object code, electronic data and files, and/or other media whatsoever created or developed by Consultant in the performance of this Agreement (collectively, “Work Product”) shall be considered to be “works made PAGE 305 of 589
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for hire” for the benefit of City. All Work Product and any and all intellectual property rights arising from their creation, including, but not limited to, all copyrights and other proprietary rights, shall be and remain the property of City without restriction or limitation upon their use, duplication or dissemination by City upon final payment being made.

Consultant shall not obtain or attempt to obtain copyright protection as to any of the Work Product. Consultant hereby assigns to City all rights of ownership to the Work Product, including but not limited to any and all related intellectual property and proprietary rights that are not otherwise vested in the City pursuant to this paragraph.

6.3. Consultant warrants and represents that it has secured all necessary licenses, consents or approvals necessary to the production of the Work Product, and that upon final payment, City shall have full legal title to the Work Product, and full legal authority and the right to use and reproduce the Work Product for any purpose.

Consultant shall defend, indemnify, and hold City, and its elected officials, officers, employees, servants, attorneys, designated volunteers, and agents serving as independent contractors in the role of city officials, harmless from any loss, claim, or liability in any way related to a claim that any use by the City of any of the Work Product violates federal, state, or local laws, or any contractual provisions, or any rights or laws relating to trade names, licenses, franchises, copyrights, patents, or other means of protecting intellectual property rights, and/or interests in products, ideas, or inventions.

Consultant shall bear all costs arising from the use of patented, copyrighted, trade secret, or trademarked documents, materials, equipment, devices, or processes in connection with its provision of the Work Product produced under this Agreement. If any use by city of any of the Work Product or other deliverables is held to constitute an infringement and the use of any of the same is enjoined, Consultant, at its expense, shall: (a) secure for City the right to continue using such Work Product and/or other deliverables by suspension of any injunction, or by procuring a license or licenses for City; or (b) modify the Work Product and other deliverables so that they become non-infringing while remaining in compliance with the requirements of this Agreement.

6.4. Consultant’s obligations under this Section 6.0 shall survive the expiration or termination of this Agreement.

7.0 Party Representatives

7.1. City’s representative for purposes of this Agreement is the City Manager or the person designated in writing by the City Manager. The City Manager’s designee may exercise the authority of the City Manager provided in this Agreement excepting approval of any expenditure that would exceed a total compensation allowed under the Agreement.

7.2. Phil Danie, Senior Vice President is Consultant’s representative for purposes of this Agreement.

8.0 Notices

8.1. All notices permitted or required under this Agreement shall be deemed made when personally delivered or when mailed 48 hours after deposit in the United PAGE 306 of 589
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States Mail, first class postage prepaid and addressed to the party at the following addresses:

To City: City of San Marino
2200 Huntington Drive
San Marino, California 91108
Attn: City Manager
To Consultant: SDI Presence LLC
200 E. Randolph Street, Ste. 3550
Chicago, IL 60601
Attn: Hardik Bhatt, CEO

8.2. Actual notice shall be deemed adequate notice on the date actual notice occurred, regardless of the method of service.

9.0 Independent Consultant

9.1. Consultant is an independent contractor and not an employee of City. All services provided pursuant to this Agreement shall be performed by Consultant or under its supervision. Consultant will determine the means, methods, and details of performing the services. Any additional personnel performing services under this Agreement on behalf of Consultant shall also not be employees of City and shall at all times be under Consultant’s exclusive direction and control. Consultant shall pay all wages, salaries, and other amounts due such personnel in connection with their performance of services under this Agreement and as required by law. Consultant shall be responsible for all reports and obligations respecting such additional personnel, including, but not limited to:
social security taxes, income tax withholding, unemployment insurance, disability insurance, and workers’ compensation insurance.

9.2. Consultant shall indemnify and hold harmless City and its elected officials, officers, employees, servants, designated volunteers, and agents serving as independent contractors in the role of City officials, from any and all liability, damages, claims, costs, and expenses of any nature to the extent arising from Consultant’s personnel practices.

City shall have the right to offset against the amount of any fees due to Consultant under this Agreement any amount due to City from Consultant as a result of Consultant’s failure to promptly pay to City any reimbursement or indemnification arising under this Section.

All duties of Consultant under this Section 9.2 shall survive termination of this Agreement.

9.3. In the event that Consultant provides any of the Services by or through any employee or any person whose work under this Agreement becomes cause for any payment or contribution required by law, including but not limited to the California Public Employees' Pension Reform Act (PEPRA), to the Public Employee Retirement System, Consultant shall be solely responsible for all such payments or contributions. Consultant shall indemnify and hold harmless City and its elected officials, officers, employees, servants, designated volunteers, and agents serving as independent contractors in the role of City officials, from any and all liability, damages, claims, costs, and expenses of PAGE 307 of 589
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any nature to the extent arising from Consultant’s failure to make any such payment or contribution. City shall have the right to offset against the amount of any fees due to Consultant under this Agreement any amount due to City from Consultant as a result of Consultant’s failure to promptly pay to City any reimbursement or indemnification arising under this Section. All duties of Consultant under this Section 9.3 shall survive termination of this Agreement.

10.0 Subcontractors
Unless otherwise specified in Exhibit A, no portion of this Agreement shall be subcontracted without the prior written approval of the City Manager. Consultant is fully responsible to City for the performance of any and all subcontractors, if any.

11.0 Assignment
Consultant shall not assign or transfer any interest in this Agreement whether by assignment or novation, without the prior written consent of City Manager. Any purported assignment without such consent shall be void and without effect.

12.0 Insurance

12.1. Consultant shall not commence work under this Agreement until it has provided evidence satisfactory to City that Consultant has secured all insurance required under this Section. Consultant shall furnish City with original certificates of insurance and endorsements, including but not limited to additional insured endorsements, effecting coverage required by this Agreement on forms satisfactory to City. The certificates and endorsements for each insurance policy shall be signed by a person authorized by that insurer to bind coverage on its behalf, and shall be on forms provided by City, if requested.

All certificates and endorsements shall be received and approved by City before work commences. City reserves the right to require complete, certified copies of all required insurance policies, at any time.

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

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

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12. 4 Professional liability (errors & omissions) insurance. Consultant shall maintain professional liability insurance that covers the Services to be performed in connection with this Agreement, in the minimum amount of $1,000,000 per claim and in the aggregate. Any policy inception date, continuity date, or retroactive date must be before the effective date of this agreement and Consultant agrees to maintain continuous coverage through a period no less than three years after completion of the services required by this agreement.

12.5 Workers’ compensation insurance. Consultant shall maintain Workers’ Compensation Insurance (statutory limits) and Employer’s Liability insurance (with limits of at least $1,000,000). Consultant shall submit to Agency, along with the certificate of insurance, a Waiver of Subrogation endorsement in favor of Agency, its officers, agents, employees, and volunteers.

12.6 Cyber security and privacy liability. Consultant shall procure and maintain insurance with limits of $1,000,000 per occurrence/loss, $2,000,000 general aggregate, which shall include the following coverage:
a. Liability arising from the theft, dissemination and/or use of confidential or personally identifiable information; including but not limited to personally identifiable information (PII), protected health information (PHI), security codes, access codes, passwords, etc.
b. Network security liability arising from the unauthorized use of, access to, or tampering with computer systems, including hacker or denial of service attacks. c. Liability arising from introducing a computer virus into or otherwise causing damage to vendor (first-party) or customer’s (third party) computer, computer system, network, or similarly related property and the data, software, and programs. d. Liability arising from professional misconduct or lack of the requisite skill required for performing services defined in the contract or agreement. e. Costs associated with restoring, updating, or replacing data. f. Costs associated with a privacy breach, including notification costs, customer support, forensics, crises management, public relations consulting, legal services of a privacy attorney, credit monitoring, and identity fraud resolution services for affected individuals.

If coverage is maintained on a claims-made basis, consultant shall maintain such coverage for an additional three (3) years following termination of the contract.

12.7 Cyber technology errors and omissions. Consultant shall procure and maintain insurance with limits of $1,000,000 per occurrence/loss, $2,000,000 general aggregate, which shall include the following coverage:

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a. Liability arising from the unauthorized release of information for which an entity has the legal obligation to keep private, such as personally identifiable information (PII) and protected health information (PHI).
b. Network security liability arising from the unauthorized use of, access to, or tampering with computer systems, including hacker or denial of service attacks. c. Liability arising from the failure of technology products (software and hardware) required under the contract for Consultant to properly perform the intended services. d. Claims alleging the failure of computer security that result in the transmission of malicious code, deletion, destruction or alteration of data, or the denial of service. e. Electronic Media Liability arising from personal injury, plagiarism or misappropriation of ideas, domain name infringement or improper deep-linking or framing, and infringement or violation of intellectual property rights. f. Liability arising from the rendering, or failure to render, professional services. g. Defense costs in regulatory proceedings (state and federal) involving a violation of privacy laws or intellectual property rights.
h. Crisis management and other expert services.

If coverage is maintained on a claims-made basis, the Consultant shall maintain such coverage for an additional three (3) years following termination of the contract.

Other provisions or requirements

12.8. Proof of insurance. Consultant shall provide certificates of insurance and required endorsements to Agency as evidence of the insurance coverage required herein.

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

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

12.10Primary/noncontributing. Coverage provided by Consultant shall be primary and any insurance or self-insurance procured or maintained by Agency shall not be required to contribute with it. The limits of insurance required herein may be satisfied by a combination of primary and umbrella or excess insurance. Any umbrella or excess insurance shall contain or be endorsed to contain a provision that such coverage shall also apply on a primary and non-contributory basis for the benefit of Agency before the PAGE 310 of 589
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Agency’s own insurance or self- insurance shall be called upon to protect it as a named insured.

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

12.12 Acceptable insurers. All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance or is on the List of Approved Surplus Line Insurers in the State of California, with an assigned policyholders’ Rating of A- (or higher) and Financial Size Category Class VII (or larger) in accordance with the latest edition of Best’s Key Rating Guide, unless otherwise approved by the Agency’s Risk Manager.

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

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

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

12.16 Notice of cancellation. Consultant agrees to oblige its insurance agent or broker and insurers to provide the Agency with a thirty (30) day notice of cancellation (except for nonpayment for which a ten (10) day notice is required) or nonrenewal of coverage for each required coverage. If any of the Consultant’s insurers are unwilling to provide such notice, then Consultant shall have the responsibility of notifying the Agency PAGE 311 of 589
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immediately in the event of Consultant’s failure to renew any of the required insurance coverages, or insurer’s cancellation or non-renewal.

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

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

12.19 Separation of insureds. A severability of interests provision must apply for all additional insureds ensuring that Consultant’s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the insurer’s limits of liability. The policy(ies) shall not contain any cross-liability exclusions.

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

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

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

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

12.24 Additional insurance. Consultant shall also procure and maintain, at its own cost and expense, any additional kinds of insurance, which in its own judgment may be necessary for its proper protection and prosecution of the work.

13.0 Indemnification, Hold Harmless, and Duty to Defend

13.1. To the maximum extent permitted by law, Consultant shall defend, indemnify, and hold City, its officials, officers, employees, volunteers and agents serving as independent contractors in the role of city officials (collectively “Indemnitees”) free and harmless from any and all claims, demands, causes of action, costs, expenses, liability, loss, damage or injury, in law or equity, to property or persons, including wrongful death, in any manner arising out of or incident to any negligent acts or omissions of Consultant, its employees, its agents, or its subcontractors in connection with the performance of this Agreement, including without limitation the payment of all consequential damages and attorneys’ fees and other related costs and expenses, except for such loss or damage arising from the sole negligence or willful misconduct of City. With respect to any and all such aforesaid suits, actions, or other legal proceedings of every kind that may be brought or instituted against Indemnitees, Consultant shall defend Indemnitees, at Consultant’s own cost, expense, and risk, and shall pay and satisfy any judgment, award, or decree that may be rendered against Indemnitees. Consultant shall reimburse City and its directors, officials, officers, employees, agents and/or volunteers, for any and all legal expenses and costs incurred by each of them in connection therewith or in enforcing the indemnity herein provided. Consultant’s obligation to indemnify shall not be restricted to insurance proceeds, if any, received by Consultant, City, its directors, officials, officers, employees, agents or volunteers. All duties of Consultant under this Section shall survive termination of this Agreement.

13.2. Consultant must obtain executed indemnity agreements with provisions identical to those in Section 13.1 from each and every subcontractor or any other person or entity involved by, for, with or on behalf of Consultant in the performance of the Services. If Consultant fails to obtain such indemnities, Consultant shall be fully responsible and indemnify, hold harmless, and defend the Indemnitees from and against any and all Claims in law or equity, whether actual, alleged, or threatened, arising or claimed to arise out of, pertaining to, or relating to the acts or omissions of Consultant’s subcontractor, its officers, agents, servants, employees, subcontractors, materialmen, contractors, or their respective officers, agents, servants or employees (or any entity or PAGE 313 of 589
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individual that Consultant’s subcontractor shall bear the legal liability thereof) in the performance of this Agreement, including the Indemnitees’ active or passive negligence, except for Claims arising from the sole negligence or willful misconduct of the Indemnitees, as determined by final arbitration or court decision or by the agreement of the Parties.

14.0 Equal Opportunity
Consultant shall not discriminate against any subcontractor, employee, or applicant for employment because of race, religion, color, national origin, handicap, ancestry, sex, sexual orientation, or age. Such non-discrimination includes, but is not limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff, or termination.

15.0 Labor Certification

15.1. By its signature hereunder, Consultant certifies it is aware of the provisions of Section 3700 of the California Labor Code that require every employer to be insured against liability for Workers’ Compensation or to undertake self-insurance in accordance with the provisions of that Code. Consultant shall provide evidence of such coverage before commencing the performance of the Services.

15.2. Consultant certifies that in the performance of the Services, Consultant shall not, in any manner, employ any person or contract with any person so that any Services so performed by such person would be subject to the workers’ compensation laws of the State of California unless and until Consultant gives City a certificate of consent to selfinsure or a certificate of Workers' Compensation Insurance Coverage.

15.3. In the event Consultant hires a subcontractor who has employees to perform the Services or any part thereof, then Consultant shall either require the subcontractor to obtain Workers’ Compensation Insurance Coverage, or must obtain Workers’ Compensation Insurance Coverage for the subcontractor’s employees.

15.4. Any Workers’ Compensation Insurance Coverage required by or for this Agreement shall be endorsed with a waiver of subrogation in favor of City for all work performed by Consultant, its employees, its agents, and its subcontractors.

16.0 Entire Agreement
This Agreement contains the entire agreement of the parties with respect to the subject matter hereof, and supersedes all prior negotiations, understandings, or agreements. This Agreement may only be modified by a writing signed by both parties.

17.0 Severability
The invalidity in whole or in part of any provisions of this Agreement shall not void or affect the validity of the other provisions of this Agreement.

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18.0 Governing Law
This Agreement shall be governed by and construed in accordance with the laws of the State of California.

19.0 No Third Party Rights
No third party shall be deemed to have any rights hereunder against either party as a result of this Agreement.

20.0 Waiver
No waiver of any default shall constitute a waiver of any other default or breach, whether of the same or other covenant or condition. No waiver, benefit, privilege, or service voluntarily given or performed by a party shall give the other party any contractual rights by custom, estoppel, or otherwise.

21.0 Headings
Headings used in this Agreement are for reference purposes only and shall not be deemed a part of this Agreement.

22.0 Force Majeure
Consultant shall not be liable for any failure to perform any obligation under this Agreement if Consultant presents that City in its sole judgment deems acceptable that such failure was due to strikes, lockouts, labor disputes, embargoes, acts of God, governmental restrictions, governmental regulations, governmental controls, judicial orders, enemy or hostile governmental action, civil commotion, fire or other casualty, or other causes beyond Consultant’s reasonable control and not due to any act by Consultant.

23.0 Final Payment Acceptance Constitutes Release
Consultant’s acceptance of City’s final payment under this Agreement shall operate as and be a release of City from all claims and liabilities for compensation to Consultant for the Services or anything done or furnished relating thereto. Neither City’s payment to Consultant nor approval of payment constitute, nor be deemed, a release of the responsibility and liability of Consultant, its employees, sub-contractors and agents for the accuracy and competency of the information provided and/or work performed; nor shall such or payment or approval be deemed to be an assumption of such responsibility or liability by City for any defect or error in the work prepared by Consultant, its employees, subcontractors and agents.

24.0 Prohibited Interests; Conflict of Interest

24.1. Consultant covenants that it presently has no interest and shall not acquire any interest, direct or indirect, which may be affected by the Services, or which would PAGE 315 of 589
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conflict in any manner with the performance of the Services. Consultant further covenants that, in performance of this Agreement, no person having any such interest shall be employed by it. Furthermore, Consultant shall avoid the appearance of having any interest, which would conflict in any manner with the performance of the Services.

Consultant shall not accept any employment or representation during the term of this Agreement which is or may likely make Consultant “financially interested” (as provided in California Government Code §§1090 and 87100) in any decision made by City on any matter in connection with which Consultant has been retained.

24.2. Consultant further warrants and maintains that it has not employed or retained any person or entity, other than a bona fide employee working exclusively for Consultant, to solicit or obtain this Agreement. Nor has Consultant paid or agreed to pay any person or entity, other than a bona fide employee working exclusively for Consultant, any fee, commission, gift, percentage, or any other consideration contingent upon the execution of this Agreement. Upon any breach or violation of this warranty, City shall have the right, at its sole and absolute discretion, to terminate this Agreement without further liability, or to deduct from any sums payable to Consultant hereunder the full amount or value of any such fee, commission, percentage or gift.

24.3. Consultant warrants and maintains that it has no knowledge that any officer or employee of City has any interest, whether contractual, noncontractual, financial, proprietary, or otherwise, in this transaction or in the business of Consultant, and that if any such interest comes to the knowledge of Consultant at any time during the term of this Agreement, Consultant shall immediately make a complete, written disclosure of such interest to City, even if such interest would not be deemed a prohibited “conflict of interest” under applicable laws as described in this subsection.

25.0 Attorneys’ Fees
If either party commences any legal, administrative, or other action against the other party arising out of or in connection with this Agreement, the prevailing party in such action shall be entitled to have and recover from the losing party all of its attorneys’ fees and other costs incurred in connection therewith.

26.0 Exhibits
Each exhibit referenced in this Agreement is hereby incorporated into the Agreement as if set forth in full herein. In the event of any material discrepancy between the terms of any exhibit so incorporated and the terms of this Agreement, the terms of this Agreement shall control.

27.0 Corporate Authority

27.1. Each person executing this Agreement on behalf of Consultant warrants that he or she is duly authorized to execute this Agreement on behalf of Consultant and that by his or her execution, Consultant is formally bound to the provisions of this Agreement.

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27.2. Consultant certifies it is aware of the requirements of Sections 313 of the California Corporations Code. If Consultant is a corporate entity, it shall either: (a) provide City written proof that each person executing this Agreement on Consultant’s behalf is duly authorized to bind Consultant; or (b) provide two signatories to this Agreement, of whom the first must be Consultant’s chairman of the board, president, or a vice president and the second must be Consultant’s secretary, an assistant secretary, its chief financial officer, or an assistant treasurer.

IN WITNESS WHEREOF, the Parties hereto, through their respective authorized representatives have executed this Agreement as of the Effective Date.

CITY OF SAN MARINO
By:_________________________
Philippe Eskandar
City Manager
Attest:

By:_________________________
City Clerk
Approved as to Form:

By:_________________________
Joseph Montes
City Attorney

SDI PRESENCE LLC
By:_____________________________
(Sign)
Name: Sharee L. Wolff
Title: CFO
By:_____________________________
(Sign)
Name: Linda Petty
Title: Secretary
PAGE 317 of 589
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Exhibit A
Scope of Services
Please see attached Proposal (Pages 1-5)
PAGE 318 of 589
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Exhibit B
Fee Schedule
Please see attached Proposal (Pages 31-33)
PAGE 319 of 589
TO: Mayor and City Council
FROM: Philippe Eskandar, City Manager
BY: Mario Rueda, Fire Chief
DATE: December 13, 2023
SUBJECT: APPROVAL OF PURCHASE FOR FIRE DEPARTMENT SELFCONTAINED BREATHING APPARATUS AND FILL STATION

STRATEGIC PLAN CRITICAL SUCCESS FACTORS
Efficient, Responsive, and Effective City Services
Fiscally Responsible and Transparent City Government
Safe Community

BACKGROUND
On June 14, 2023 the City Council approved the Operating and Capital Budget for Fiscal Year 2023-2024. As part of the Capital Equipment component of the budget, the Council approved $310,000 for the purchase of self-contained breathing apparatus for all sworn personnel (SCBA) and an SCBA fill station.

SCBA are critical personal protective equipment for firefighters entering environments that pose a threat to health and life safety. Standards for selfcontained breathing apparatus are governed by the National Fire Protection Association (NFPA). The department’s current SCBA equipment was purchased in 2011, have reached the end of their service life, and are two cycles out of compliance with current NFPA standards. The department is seeking to replace 19 SCBAs and 60 cylinders, and install a fill station for SCBA maintenance.

DISCUSSION
The 3M Scott Air-Pak X3 Pro is an industrial/occupational SCBA. Each SCBA consists of a full facepiece assembly; a removable, positive pressure, maskmounted regulator with air-saver switch; an automatic dual path redundant pressure reducer; end-of-service time indicators; a harness and backframe Steve Talt, Mayor
Steven W. Huang, DDS, Vice Mayor
Tony Chou, Council Member
Calvin Lo, Council Member
Gretchen Shepherd Romey, Council Member
PAGE 320 of 589
assembly for supporting the equipment on the body of the wearer; a shoulder strap mounted, remote gauge indicating cylinder pressure; a rapid intervention crew/universal air connection (RIC/UAC); a personal alert safety system (PASS); and cylinder and valve assembly for storing breathing air under pressure.

The 3M Scott SCBA is widely used by agencies throughout Area C, including our immediate neighbors, the South Pasadena Fire Department (SPFD); and the Pasadena Fire Department (PFD). Selecting 3M Scott SCBA provides the continuing opportunity for the San Marino Fire Department to exchange personnel, consistent with the Shared Personnel Agreement with the SPFD. Interoperability of breathing apparatus equipment is essential to safe and effective inter-changeability between the two agencies. If a different product were purchased by the SMFD, sharing of personnel would not be possible. It is in the best interests of the City to dispense with competitive bidding and purchase the 3M Scott Air-Pak X3 Pro SCBAs. Allstar Fire Equipment is the sole distributor for 3M Scott SCBA.

The Stallion Air Centaur 2G2 is an SCBA fill station that is used to refill SCBA cylinders. The Stallion Air Centaur is the only product of its type with automatic fill capability which provides for hands free, one button filling without requiring an attendant to stand by until the bottles are filled. Stallion fill stations are sold by L.N. Curtis under a cooperative purchasing agreement through Sourcewell Contract 040220-LNC.

Vendor Description Cost
Allstar Fire Equipment 3M Scott Air-Pak Pro
SCBA
$224,238.28
L.N. Curtis Stallion Air Centaur 2G2 $82,686.39
Total $306,924.67

FISCAL IMPACT & PROCUREMENT REVIEW
The approved Operating and Capital Equipment Budget includes $310,000 from account 591-34-4613-0563 for the purchase of SCBAs and an SCBA fill station.

The Finance Director has reviewed this report and determined that this is in accordance with S.M.C.C. 02.06.05.B.2 as the best interests of the City are served by dispensing with competitive bidding for Allstar Fire Equipment as it is the sole distributor for 3M Scott SCBA and L.N. Curtis due to the cooperative purchasing agreement through Sourcewell Contract 040220-LNC.

PAGE 321 of 589

LEGAL REVIEW
The City Attorney's office has reviewed and approved as to form.

PUBLIC SAFETY COMMISSION REVIEW
The Public Safety Commission met on November 20, 2023 and reviewed this item as a part of their regular meeting agenda. The Commission’s review included questions related to the general costs of similar products available to fire departments, life span of the recommended product, and they requested additional justification for the purchase of the compressor. All of the available SCBA vendor products offered to fire departments are within the price range quoted for the 3M Scott product. The projected life span for this product is 12 to 14 years.

The Fire Department does not currently possess an air-filling compressor. The South Pasadena Fire Department has previously provided filling services for the Fire Department; however, their truck mounted air-compressor is unreliable and is out of service. This requires our Department personnel to travel to other fire departments for filling services.

The Public Safety Commission has reviewed the report and unanimously supported the Fire Department’s recommendation to City Council.

RECOMMENDATION
Staff recommends the Council waive competitive bidding and (1) approve the purchase of 3M Scott self-contained breathing apparatus from Allstar Fire Equipment in the amount of $224,238.28; and (2) approve the purchase of a Stallion Air Centaur fill station from L.N. Curtis in the amount of $82,686.39.

If the Council concurs with staff’s recommendation, an appropriate motion would be:
“I move to waive competitive bidding and (1) approve the purchase of 3M Scott self-contained breathing apparatus from Allstar Fire Equipment in the amount of $224,238.28; and (2) approve the purchase of a Stallion Air Centaur fill station from L.N. Curtis in the amount of $82,686.39.”

ATTACHMENTS

1. Allstar Fire Equipment Quote - 3M Scott Air-Pak X3 Pro SCBA

2. LN Curtis Quote - Stallion Air Centaur 2G2 Fill Station PAGE 322 of 589
To:

Attn:

E-Mail:

Qty Unit Description Price Extension
19 Ea Scott - p/n X8914N25305303 / Air-Pak X3 PRO (2018 Edition) Snap Change , 4500 psi, Standard Harness with CBRN mask mounted regulator with quick Disconnect Rectus Hose Fitting, Dual UEBSS buddy Breathing System with Rectus Connections, Integrated PASS, RIC/UAC Fixed, EZ-Scape Pro Belt (Less Cylinder, Spare Harness, Voice Amp, Case & Mask)
$6,569.99 $124,829.81
2 Ea Scott - p/n 201215-27 / AV-3000 HT, 4 Strap Facepiece with Right Size Communication Bracket - Size: Small
$340.76 $681.52
26 Ea Scott - p/n 201215-28 / AV-3000 HT, 4 Strap Facepiece with Right Size Communication Bracket - Size: Medium
$340.76 $8,859.76
2 Ea Scott - p/n 201215-29 / AV-3000 HT, 4 Strap Facepiece with Right Size Communication Bracket - Size: Large
$340.76 $681.52
30 Ea Scott - p/n 201276-11 / Epic 3 RDI Voice Amp, Open Config $728.34 $21,850.20 53 Ea Scott - p/n 200129-BCXXXX / 4500 psig, 45 Minute, Cylinder with Snap Change Valve Assembly with Custom Logo Cylinder Banding (Pricing for this quote only)
$644.28 $34,146.84
53 Ea 3-D Polymers / Sleeve, for Customer Specified Scott 45 Minute, 4500 psig Cylinder, Diameter of 6.30" (Cut TBD)
$51.59 $2,734.27
2 Ea Scott - p/n 200954-12 / RIT Pack III, 2018 Edition, 4500 psig, CGA Air Source Kit with Carrying Bag, Shoulder Strap, 6' UEBSS with Rectus Fitting, 5' RIC Hose, Rit-Pak Facepiece, Regulator with Rectus Fitting (Less Cylinder)
$3,436.18 $6,872.36
2 Ea Scott - p/n 804723-BDXXXX/ Cylinder, 4500 psig, 60 Minute with CGA Valve Assembly with Custom Logo Cylinder Banding (Pricing for this quote only)
$1,487.18 $2,974.36
2 Ea 3-D Polymers / Sleeve, for Customer Specified Scott 60 Minute, 4500 psig Cylinder, Diameter of 7.05" (Cut TBD)
$51.59 $103.18
Sales Quote
12328 Lower Azusa Rd. * Arcadia, California 91006 * Phone 626-652-0900 Fax 626-652-0920 Per your request, we are pleased to quote on the following. [email protected]
September 26, 2023
San Mario FD
Dan Wagenbrenner