Santa Clara County Suicide Prevention Strategic Plan June 2010 Revised March 2011 Page 72 of 136 Strategy Three ‐ Develop Local Communication “Best Practices” to Improve Media Coverage and Public Dialogue Related to Suicide Desired Outcomes
1. Creation of a coordinated communication strategy that • Ensures the development of a clear, concise, paradigm‐shifting message for all outreach efforts;
• Ensures that the guidelines for responsible communication on issues pertaining to suicide are adhered to by media and agencies; and • Ensures consistency in public messaging.
2. Educate various sectors of our economy: for‐profit, government, non‐profit.
3. Increase knowledge in local media on the importance of responsible reporting about suicide as measured by adherence to Safe Reporting on Suicide guidelines (see page 56).
4. Obtain agreement and follow‐through among key media outlets (traditional and non‐traditional) to coordinate public news releases strategically to address periods when suicide risk is higher and to respond appropriately to suicide deaths, clusters, and suicide‐homicide deaths.
5. Obtain agreement and follow‐through among key media outlets (traditional and non‐traditional) to ensure the utilization of resource directories on local suicide prevention and crisis services in multiple languages.
6. Obtain agreement and follow‐through among key media outlets to ensure all materials are linguistically and culturally appropriate for Santa Clara County’s residents.
7. Maintain a dedicated suicide prevention website and clarification of its target audience and purpose.
Target Populations
1. Local media outlets—traditional and non‐traditional
2. Public Information Officers (PIOs) in government and business
3. Human resources departments, employee assistance services, unemployment offices, and Social Security Offices
Current Activities and Recent Gains
Fortunately, there are abundant, credible sources of information about concrete ways to improve the media coverage of suicides and reduce the rate of reporting activities precipitating additional suicides or attempts. The result of a collaborative effort was the development and Santa Clara County Suicide Prevention Strategic Plan June 2010 Revised March 2011 Page 73 of 136 Strategy Three ‐ Continued
release of a consensus document, Reporting on Suicide: Recommendations for the Media104. National advocate for suicide prevention and member of the SPAC, Mary Ojakian, along with SPAC member Mark Simon, participated in Project Safety Net and helped to organize a round table discussion among several local publishers on the importance of adopting the guidelines on safe reporting on suicide.
A website dedicated to suicide prevention was established on the Mental Health Department’s website, www.sccgov.org/spac, listing resources and describing activities of the Suicide Prevention Advisory Committee. Recommendation: A Suicide Prevention Project Coordinator should ensure that the website is in alignment with messaging defined by the Work Group and in alignment with best practices to the fullest extent possible. Assigned project coordination responsibilities to the liaison to the California Department of Mental Health’s Office of Suicide Prevention.
Recommended Actions
The Suicide Prevention Advisory Committee (SPAC) recommends the following activities to ensure an effective Communications Plan:
1. Convene a Communications Plan Committee, chartered to:
Develop a Communications Plan appropriate for the diverse residents of Santa Clara County.
Define one to three clear, concise, paradigm‐shifting priority messages (e.g., MADD’s “Friends don’t let friends drive drunk”).
Using local community input, tailor the above paradigm‐shifting messages for different targeted populations, i.e., language, age, etc. Educate media and local reporters about safer protocols on reporting suicide attempts and deaths. The SPAC recommends the utilization of the “Safe Reporting on Suicide Guidelines,” prepared by the Suicide Prevention Resource Center.
These guidelines are recommended for promotion and utilization in Santa Clara County. Dissemination of these guidelines should be one aspect of this strategy.
Engaging in discussions with each of the media outlets should be the emphasis. Consider and review the potential of existing efforts to raise awareness for possible inclusion in this strategy. Some examples for consideration include a training workshop targeting reporters and media personnel offered by the American Foundation for Suicide Prevention (AFSP) and the Substance Abuse Mental Health Services Administration’s (SAMHSA) “Picture This: Depression and Suicide Prevention,” a publication targeting media personnel. Consider fostering a broad coalition including neighboring counties that all share the Silicon Valley’s media communications, to include San Mateo and San Francisco Counties, to leverage funding and resources.
Santa Clara County Suicide Prevention Strategic Plan June 2010 Revised March 2011 Page 74 of 136 Strategy Three ‐ Continued
Work with social networking companies.
Continue work on development and implementation of PSAs, news releases, web‐based information, and other media/materials.
Santa Clara County Suicide Prevention Strategic Plan June 2010 Revised March 2011 Page 75 of 136 Strategy Four ‐ Implement Policy and Governance Advocacy to Promote Systems Change in Suicide Awareness and Prevention Desired Outcomes
While specific measurable outcomes need to be developed for this strategy, in general terms, goals of this strategy are to:
1. Increase public awareness of suicide as a public health problem within an organization by promoting adoption of policies and programs that either work to prevent suicide or respond to emotional crises.
2. Promote local, state, and federal policies and programs that prevent suicide.
3. Disseminate information to individuals in the community regarding the Santa Clara County Suicide Prevention Plan and its recommended activities.
4. Build partnerships with other local suicide prevention and mental health agencies, governments, media, and other organizations with a stake in public health.
5. Help remove the stigma associated with suicide by bringing the subject out in the open and discussing what can be done to prevent it.
6. Recruit individuals and organizations to advocate for policy change and/or adoption in their workplace or community site.
7. Change laws—see Recommended Actions below.
8. Advocate for prevention funding.
Target Populations
The committee’s recommended strategies in this category include advocacy on behalf of:
Partnerships between primary care and mental health professionals; Partnerships with support organizations and service providers (e.g., churches, employee assistance programs, schools, National Alliance on Mental Illness, etc.) to raise awareness and create a welcoming environment for those at risk of suicide; Strong networks of support organizations and service groups (e.g., a network of youth‐ supporting organizations and service groups);
Active participation across sectors, industries, and groups in implementing strategies (e.g., education, healthcare, non‐profit, for‐profit, government); Legislative or policy changes in government and institutions, with a goal of convincing as many systems as possible to play key roles in suicide prevention; Broad adoption of policies mandating cultural and linguistic competency; Standardization of reporting requirements across sectors and agencies; and Possible certification of a countywide hotline with National Suicide Prevention Center’s Lifeline.
Santa Clara County Suicide Prevention Strategic Plan June 2010 Revised March 2011 Page 76 of 136 Strategy Four‐ Continued
Current Activities and Recent Gains
Palo Alto Unified School District Board of Education adopted a policy for suicide prevention in their school district at their meeting June 1, 2010, and Los Gatos Union High School District is working on a similar policy.
Palo Alto Unified School District has shared their policy and Articles of Regulations implementation guidelines. All districts have been requested to create a comparable policy. Partnered with the County Medical Examiner‐Coroner’s Office to improve data collection for future psychological profiling activities of those identified as dead by suicide. County Medical Examiner‐Coroner’s Office provided the first‐ever comprehensive investigative reports for all suicides that occurred in 2009 to be able to begin to analyze and possibly use in future psychological profiling efforts. County Medical Examiner‐Coroner’s Office is considering the adoption of a new policy that they annually prepare investigative reports for all suicides that occurred in the previous year for subsequent analysis of the data.
Revamped training for involuntary suicide prevention holds—5150/ 5250. In partnership with law enforcement agencies, the Mental Health Department is continuing to enhance law enforcement officers’ abilities to manage crises involving mentally ill residents through Police Crisis Intervention Training (CIT). In addition to reducing the need for using deadly force, this 40‐hour program can save lives by giving officers tools they can use when encountering individuals who intend to lose their lives by intentionally threatening police officers (i.e., suicide by police). Recommendation: 1) Advocate for more required mental health training for cadets, and 2) advocate for law enforcement agencies to require that more officers receive Crisis Intervention Training (CIT). Our county’s school districts have been actively involved in the effort to reduce youth suicide and to raise awareness among their staff on how to recognize students in emotional distress or crisis and how to intervene and provide support. Recommendation: Advocate and monitor adoption until all school districts adopt and implement a policy. PEI Project 5 ‐ Suicide Prevention. The Interim Suicide Prevention Oversight Committee will write PEI Project 5 ‐ Suicide Prevention Proposal for submission to the Oversight and Administration Committee (OAC) for approval. This proposal will include funding for a Suicide Prevention Coordinator. Anticipated submission date for the new project is August to September 2010. Approval for the new project is expected by July 2011. The Mental Health Department will request joining the California Mental Health Services Authority (CalMHSA) in August 2010, with acceptance anticipated for October 2010, at which time the Mental Health Department will be able to represent Santa Clara County in the California Mental Health Services Act discussions and deliberations concerning the:
• Student Mental Health Initiative
• State suicide prevention efforts and programming, and • Ethnic specific programs.
■
Santa Clara County Suicide Prevention Strategic Plan June 2010 Revised March 2011 Page 77 of 136 Strategy Four‐ Continued
Recommended Actions
We will identify and work with local organizations, including schools and school districts, to support suicide prevention efforts. This will be part of an ongoing effort to identify, share and leverage resources, to provide other forms of assistance as feasible and desirable, and to move toward the objective of comprehensive adoption and implementation of effective suicide prevention measures in all key venues.
The American Foundation for Suicide Prevention (AFSP) suggests several tools for learning more about effective advocacy. The SPAC recommends that these tools be considered when detailing the specific activities of this strategy. The references include:
National Mental Health Association’s Advocacy Primer
Grassroots Tool Kit: A manual on event planning, coalition building, and grassroots advocacy from the Leadership Conference on Civil Rights Advocate’s Guide to Grassroots Organizing During a Congressional Recess from the Leadership Conference on Civil rights, and
Speak, Out! A Guide to Advocacy regarding Mental Health Policy from the Mental Health Association of Westchester County.
Some specific actions suggested by the AFSP in the area of advocacy include, but are not limited to, the following:
1. Strengthening legislation on veteran and military suicide prevention to promote longitudinal research on the rates and develop anti‐stigma campaigns and continue to expand suicide prevention programs to assist members, returning veterans and their family members.
2. Adoption of legislation and other policy directives to encourage the National Institutes of Health Agencies to invest more substantially in research related to suicide, suicide prevention, and survivors of suicide loss or suicide attempts.
3. Appropriations at the maximum attainable level for the National Violent Death Reporting System.
4. Implementation of Mental Health Parity and Health Insurance Reform.
5. Reauthorization of and appropriations for the Substance Abuse and Mental Health Services Administration (SAMHSA).
6. Adoption of legislation to allow the Golden Gate Bridge Authority (and other local jurisdictions) to use federal funds for bridge suicide prevention barriers.
7. Adoption of legislation that aims to reduce bullying and cyber‐bullying.
8. Adoption of legislation to establish Depression Centers of Excellence.
Santa Clara County Suicide Prevention Strategic Plan June 2010 Revised March 2011 Page 78 of 136 Santa Clara County Suicide Prevention Strategic Plan June 2010 Revised March 2011 Page 79 of 136 Strategy Five ‐ Establish a Robust Data Collection and Monitoring System to Increase the Scope and Availability of Suicide‐Related Data and to Evaluate Suicide Prevention Efforts
This strategy develops and sustains processes for collecting and analyzing state and local data that will help establish local program priorities and evaluate the impact of suicide prevention strategies.
Desired Outcomes
Proving that this plan is making a difference by reducing the number of deaths by suicide can only be accomplished by collecting data and monitoring the activities of the plan and its outcomes. In order to do this the following goals must be met:
1. Expand reporting on suicide attempts and deaths;
2. Increase accuracy in reporting of data related to suicide and prevention activities;
3. Increase the convergence of data reported by various entities;
4. Increase availability of comprehensive data on suicide‐related activities in Santa Clara County; and
5. Establish and define a centralized monitoring body of suicide prevention activities and outcomes.
Target Population
1. General public
2. Policy makers and funding entities
3. Local public health monitoring system
4. Implementation entities
Current Activities and Recent Gains
Partnered with County Medical Examiner‐Coroner’s Office to improve data collection for future psychological profiling activities of those identified as dead by suicide. County Medical Examiner‐Coroner’s Office provides to the committee a compilation of the routine investigation reports for all reported suicide deaths on a yearly basis, beginning with 2009 deaths.
Collected and conducted a preliminary review of suicide data for Santa Clara County including by zip code, city, and a variety of social factors. Conducted preliminary needs assessment of high risk population groups.
Santa Clara County Suicide Prevention Strategic Plan June 2010 Revised March 2011 Page 80 of 136 Strategy Five ‐ Continued
Recommended Actions
Local efforts, as recommended by the SPAC, will be defined more specifically and completed during the implementation phase. They include:
1. Identify a Monitoring Team to
a. Oversee plan implementation,
b. Identify resources and funds,
c. Produce an implementation schedule,
d. Select and begin meetings of a Suicide Prevention Oversight Committee (SPOC),
e. Devise plan for continuous data collection and analysis, f. Develop and report standards for monitoring and measuring plan outcomes, and
g. Elicit public input on strategies and funding priorities;
2. Determine specifically what additional data are needed to accurately monitor the number of lives lost to suicide;
3. Define baselines for strategies in existence at that time;
4. Conduct a review of all suicide prevention resources in County;
5. Define or refine planning and process metrics to track prevention and intervention strategies;
6. Review and interpret data on lives lost to suicide;
7. Work for the creation of a Santa Clara County Suicide Death Review Committee; and
8. Monitor the Plan’s implementation to ensure that efforts continue across various systems as part of a countywide approach to reduce suicide.
The committee recommends achieving the desired outcomes by establishing a monitoring system as described by “National Strategy for Suicide Prevention, Goals and Objectives for Action,” an outline adopted by the U.S. Department of Health and Human Services, the Substance Abuse and Mental Health Services Administration and the National Mental Health Information Center, which includes the following:
Track trends in rates,
Identify new problems or additional data required,
Provide evidence to support activities and initiatives, Identify risk and protective factors,
Target high risk populations for interventions, and
Assess the impact of prevention efforts.
Santa Clara County Suicide Prevention Strategic Plan June 2010 Revised March 2011 Page 81 of 136 Strategy Five ‐ Continued
Additionally, the committee recommends:
Establishing a Death Review Panel and process to review reports of all deaths by suicide, and possibly suspected suicide in order to create psychological profiles of those at risk. Create an annual report based on psychological profile findings to contribute to the knowledge of suicide in Santa Clara County.
Learn from past suicides and suicide attempts to prevent similar situations in the future. Conduct a comprehensive assessment of mental health services and standards in the county.
Identify what additional data is required for our county’s suicide prevention efforts. Identify leading causes of suicide in Santa Clara County to assist in identifying priorities for means restriction, as appropriate.
Develop and maintain a current database of academic articles, data, and other resources on suicide.
Monitor high‐traffic, youth‐oriented websites to assess suicide‐related content and take action where needed. (Examples of online sites include: YouTube, Facebook, and Twitter.) Inventory existing social and medical service centers, such as hospitals and medical clinics, to determine gaps and best practices in the mental health system. Monitor outreach activities offering support for previous suicide attempters. Conduct a comprehensive assessment and determine methods to reach and provide for those at‐risk of suicide.
Potential sources for data
Nationally, suicide surveillance data come from death certificates. This vital statistics information is available from the National Center for Health Statistics, Centers for Disease Control and Prevention. Medical examiner databases also provide some information related to suicide. The information on rates available from vital statistics databases obviously does not include those deaths misclassified as homicides or accidents, and an unknown number of others misclassified as natural causes but which may actually be suicides. Information available from death certificates is limited and is not always complete. Prevention efforts would be enhanced by more comprehensive information. However, such information is not now systematically collected. Data on suicide attempts must come from sources designed for other purposes, such as trauma registries and uniform hospital discharge data sets. Trauma registries provide detailed information about the nature and severity of an injury, the treatment provided, and the status of the patient on discharge from the hospital. However, most trauma registries include only "major" trauma cases, those that require at least a three‐day hospital stay. Moreover, many suicide attempts do not lead to traumatic injuries (e.g., Santa Clara County Suicide Prevention Strategic Plan June 2010 Revised March 2011 Page 82 of 136 Strategy Five ‐ Continued
overdoses of medicines). Thus, trauma registries have only limited information on suicide attempts.
A uniform hospital discharge data set is another potential source of information on suicide attempts. As suggested by its name, a hospital discharge data set provides information only about those suicide attempts that resulted in hospital treatment. Not all states require either trauma registries or uniform hospital discharge data.
The State of Oregon is unique in that a 1987 law requires hospitals treating a child under the age of 18 for injuries resulting from a suicide attempt to report the attempt to the Oregon Health Division. This data source provides important information for youth suicide prevention programming in Oregon.
Other possible sources of data on suicide attempts include mental health agencies, psychiatric hospitals, poison control centers, universities and colleges, child death review team reports, emergency departments, and surveys. Limitations exist for all of these data sources, such as lack of detail on the circumstances surrounding the suicide attempt. Detailed information is important because it may lead to increased knowledge of how suicides can be prevented in the future.
Santa Clara County Suicide Prevention Strategic Plan June 2010 Revised March 2011 Page 83 of 136 VI. Next Steps
Santa Clara County Suicide Prevention Strategic Plan June 2010 Revised March 2011 Page 84 of 136 VI. Next Steps
The desired outcomes for each of the five recommended strategies in the Suicide Prevention Strategic Plan (the Plan) cannot be achieved through isolated actions or services. The scope of the problem and the need for community‐wide support necessitates long‐term, sustained and coordinated effort by many stakeholders. There is no time to waste. The goal of this section is to commit Santa Clara County to concrete actions that will tangibly improve suicide prevention activities in the County by December 31, 2010. These actions will lay the foundation for full implementation of the Plan.
Infrastructure. These actions are intended to create the requisite infrastructure to implement, coordinate and report on suicide prevention efforts throughout the county. 1) Establish a Suicide Prevention Oversight Committee (SPOC). The SPOC will advise the Board of Supervisors on the implementation of the Plan and will submit semi‐annual progress reports to the Board of Supervisors’ Health and Hospital Committee (HHC). The SPOC will work closely with the Mental Health Department (MHD), which will serve as the lead agency in coordinating suicide prevention services/activities throughout the county. 2) Hire a Suicide Prevention Coordinator. To ensure timely facilitation and ongoing support for implementation of the Plan, the MHD will designate one full‐time staffperson as the County’s Suicide Prevention Coordinator.1
This staff person also will serve as the County’s
liaison to the California Office of Suicide Prevention. 3) Form Four Work Groups. As indicated in the Plan, the SPOC will form four work groups, each of which will plan for, oversee, and report on the implementation and effectiveness of its assigned strategies. The following four work groups will develop implementation plans for each strategy:
a) An Intervention Strategies work group (Strategy 1) will compile a comprehensive overview of existing and needed intervention strategies. It will coordinate a system of suicide prevention services.
b) A Communications Practice work group (Strategies 2 and 3) will have oversight over all resulting communication projects and activities related to suicide prevention, both locally and regionally, including a Community Education Campaign. c) A Policy and Governance work group (Strategy 4) will advocate for the adoption of suicide prevention policies and protocols among agencies, systems and organizations throughout the County.
d) A Data Committee (Strategy 5) will define the Plan’s data requirements, sources and reporting processes.
1 This assumes that the Board of Supervisors and the State will approve a fifth MHSA Prevention & Early Intervention project.
Santa Clara County Suicide Prevention Strategic Plan June 2010 Revised March 2011 Page 85 of 136 Early Implementation. Upon approval from the Board of Supervisors, the MHD will proceed with the following actions which will either immediately reduce suicides or develop new funding sources for suicide prevention activities.
1) Develop Formal MHSA PEI Project for Suicide Prevention. The MHD will develop a fifth Prevention and Early Intervention (PEI) Project for Suicide Prevention and hire a full time (1.0 FTE) Suicide Prevention Coordinator. If approved by the State, “PEI Project 5” will fund approximately $800,000 in new suicide prevention activities annually for three to four years. Funding from this project will support activities in each of the Plan’s five strategies, laying the foundation for new services and resource development. The SPOC will devise a process to apportion available funding to each of the five strategies. 2) Implement Listening Campaigns. The Suicide Prevention Coordinator will begin implementing “Listening Campaigns” to promote mental health and suicide prevention awareness. The Listening Campaigns also will serve as an ongoing vehicle for incorporating residents’ input into the Plan’s implementation.
3) Make Formal Connections to Statewide Suicide Prevention Efforts. The MHD will actively coordinate with and leverage existing statewide suicide prevention efforts, including the activities of the California Mental Health Services Authority (CalMHSA). The MHD’s goals are to influence the development of statewide programs and to ensure that local funds— which have been assigned to support statewide PEI projects—have an impact on local efforts.
4) Implement Approved Suicide Prevention‐Related PEI Plans. a) “First Break” Treatment Programs. Under PEI Project 3, the MHD will initiate services to help individuals, especially for adolescents and Transitional Age Youth (16‐25), address the onset of serious psychiatric illness (with psychotic features). b) Community Education and Training. Under PEI Project 1, the MHD will increase mental health literacy and reduce stigma and discrimination within underserved cultural communities by implementing Mental Health First Aid programs. c) Integrated Behavioral Health. The MHD will implement early intervention services in community‐based, primary care clinics to serve approximately 4,200 patients annually (once fully operational).
d) Gatekeeper Training. The MHD will implement “gatekeeper” programs for older adults.
The above concrete actions will augment current suicide prevention efforts. Modifications or expansion of the aforementioned programs will be influenced by the SPOC as it implements the Plan’s five strategies.
Santa Clara County Suicide Prevention Strategic Plan June 2010 Revised March 2011 Page 86 of 136
Santa Clara County Suicide Prevention Strategic Plan June 2010 Revised March 2011 Page 87 of 136 VII. Appendix
Attachment 1: Suicide in Santa Clara County by Zip Code, 2000‐2006 Suicide‐Homicide Comparison Table
Attachment 2: Santa Clara County Community Agencies and Programs that Interface with Suicide Attempters, Victims, and Loved Ones
Attachment 3: Best Practices Recommendations
Attachment 4: Summary of Public Forum Input
Attachment 5: Palo Alto Unified School District Suicide Prevention and Mental Health Promotion Policy
Attachment 6: References
Santa Clara County Suicide Prevention Strategic Plan June 2010 Revised March 2011 Page 88 of 136 Santa Clara County Suicide Prevention Strategic Plan June 2010 Revised March 2011 Page 89 of 136 Attachment 1. Suicides in Santa Clara County by Zip Code, 2000‐2006, and Suicide‐Homicide Comparison Table
ZIP CITY 2000 2001 2002 2003 2004 2005 2006
SUI HOM SUI HOM SUI HOM SUI HOM SUI HOM SUI HOM
SU
I HOM
94022
Los
Altos 1 0 3 0 0 0 0 0 0 0 0 0 3 0
94024
Los
Altos 0 0 3 0 4 0 6 0 2 0 1 0 5 0
L.A. &
L.A.
Hills
Totals 1 6 4 6 2 1 8
94040
Mountain
View 2 0 6 0 2 0 5 1 4 1 1 0 3 0
94041
Mountain
View 4 0 0 0 1 0 0 0 2 1 0 0 1 0
94043
Mountain
View 1 0 5 1 4 1 4 0 2 0 2 0 0 1
M.V.
Totals 7 11 7 9 8 3 4
94085
Sunnyvale 0 0 0 0 0 0 4 0 0 0 0 0 3 0
94086
Sunnyvale 9 2 8 0 11 2 7 3 7 1 3 2 4 0
94087
Sunnyvale 4 0 4 0 3 1 2 0 9 0 4 1 1 0
94089
Sunnyvale 0 0 5 0 2 0 0 0 2 1 3 0 2 1
Sunnyvale
Totals 13 17 16 13 18 10 10
94301
Palo
Alto 2 0 2 0 2 0 3 2 7 0 1 0 2 0
94303
Palo
Alto 2 5 5 5 2 4 1 9 4 4 4 11 0 7
94304
Palo
Alto 0 0 0 0 0 0 0 0 0 1 0 0 0 0
94305 Stan-ford 0 0 1 0 0 0 0 0 0 0 1 0 0 0
94306
Palo
Alto 0 1 2 0 2 0 2 0 4 2 2 0 6 1
95002 Alviso 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Santa Clara County Suicide Prevention Strategic Plan June 2010 Revised March 2011 Page 90 of 136 ZIP CITY 2000 2001 2002 2003 2004 2005 2006
SUI HOM SUI HOM SUI HOM SUI HOM SUI HOM SUI HOM SUI HOM 95008
Campbell 1 0 2 0 4 0 4 1 4 0 1 3 7 0
95014
Cupertino 4 0 2 0 1 2 0 2 0 2 0 4 0
95020 Gilroy 5 7 5 3 5 1 2 2 3 0 4 2 3 1
95030
Los
Gatos 0 0 2 0 1 0 3 0 1 1 2 0 3 0
95032
Los
Gatos 4 0 2 0 0 0 3 0 4 0 5 0 1 0
95035
Milpitas 3 1 2 1 3 0 4 3 6 2 6 3 1 1
95037
Mor-gan
Hill 0 1 3 0 7 0 6 0 4 1 3 1 3 0
95046
San
Martin 0 0 0 2 1 0 1 0 0 0 0 0 1 0
95050
Santa
Clara 2 2 3 0 1 2 5 0 1 2 2 2 1 2
95051
Santa
Clara 6 0 2 0 4 3 1 4 0 2 3 6 0
95054
Santa
Clara 0 0 1 1 0 0 1 1 1 2 0 0
S.C.
Totals 8 6 5 6 6 5 7
95070
Saratoga 3 1 2 0 3 0 3 1 9 5 1 1 0 1
95110 San Jose 3 0 0 2 0 0 3 1 0 1 0 2 0 0
95111 San Jose 5 3 4 0 1 2 6 2 3 2 8 1 3 2
95112 San Jose 3 3 2 3 9 1 5 4 3 3 3 0 5 1
95113 San Jose 0 0 0 1 0 0 0 0 1 0 2 0 1 0
95116 San Jose 1 3 1 3 3 5 1 2 3 4 2 4 6 1
95117 San Jose 5 0 1 0 2 0 2 0 3 1 1 0 2 4
95118 San Jose 0 2 2 1 2 0 0 2 4 4 1 1 2 0
95119 San Jose 0 0 0 0 0 0 1 1 0 0 0 0 2 1
95120 San Jose 2 0 2 0 7 3 0 0 2 1 0 0 6 0
95121 San Jose 3 0 3 1 1 0 1 1 1 1 0 0 0 1
95122 San Jose 3 1 1 2 1 3 1 4 1 5 4 3 1 6
95123 San Jose 7 2 3 2 5 1 3 1 10 0 8 0 2 0
95124 San Jose 4 0 4 0 3 0 8 0 6 0 8 1 3 1
95125 San Jose 9 1 3 1 2 1 5 1 8 1 4 0 2 1
95126 San Jose 1 1 1 4 2 0 3 1 4 1 2 0 1 0
Santa Clara County Suicide Prevention Strategic Plan June 2010 Revised March 2011 Page 91 of 136 ZIP CITY 2000 2001 2002 2003 2004 2005 2006
SUI HOM SUI HOM SUI HOM SUI HOM SUI HOM SUI HOM SUI HOM 95127 San Jose 1 2 4 3 3 7 6 5 5 1 5 3 1 4
95128 San Jose 4 1 3 1 1 1 5 1 0 1 2 0 2 0
95129 San Jose 0 0 1 1 6 0 1 0 2 0 2 3 0 0
95130 San Jose 2 0 1 0 0 0 1 0 1 1 0 0 1 0
95131 San Jose 2 1 3 0 0 0 0 1 1 0 0 0 0 0
95132 San Jose 3 1 2 0 5 2 3 1 4 0 1 1 3 1
95133 San Jose 1 1 0 1 1 1 1 0 1 2 1 3 1 2
95134 San Jose 0 0 0 0 1 0 1 1 3 0 1 0 0 1
95135 San Jose 2 0 1 0 1 0 2 0 1 0 0 0 0 0
95136 San Jose 1 1 3 0 1 0 3 0 1 1 2 0 1 1
95138 San Jose 0 0 0 0 0 0 1 0 2 0 0 0 0 0
S.J.
Totals 65 47 61 65 73 60 47
TOTAL 120 120 125 133 156 112 109
1 - 3
4 - 6
7 - 10
California Department of Finance, Demographic Research Unit, Estimates of Population of California Cities, 2006:
Campbell 36,984
Cupertino 55,000
Gilroy 48,448
Los Altos and Los Altos Hills 36,065
Los Gatos 28,971
Milpitas 65,235
Monte Sereno 3,511
Morgan Hill 37,066
Mountain View 71,947
Palo Alto 62,108
San Jose 953,058
Santa Clara 110,700
Saratoga 30,815
Sunnyvale 133,458
Unincorporated 98,244
Total County-2006 Estimate 1,771,610
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Santa Clara County Suicide Prevention Strategic Plan June 2010 Revised March 2011 Page 92 of 136 Santa Clara County Suicide Prevention Strategic Plan June 2010 Revised March 2011 Page 93 of 136 Attachment 2. Santa Clara County Community Agencies and Programs that Interface with Suicide Attempters, Victims, and Loved ones Program Name Description
Suicide and Crisis
Services (SACS)
Operated by: County
Mental Health
Department
This county program provides residents with access to a 24‐hour telephone hotline.
Operated primarily by 100 volunteers and with less than $90,000 in annual funding, the program fields over 35,000 calls annually from suicidal clients, concerned family members and other residents in crisis. Approximately 10% of calls are from individuals with suicide ideation. SACS also supports grieving families and friends through its Survivors of Suicide Group and partners with grief /loss support programs operated by Kara and the Bill Wilson Center's Centre for Living with Dying. Several times each year, SACS staff members provide training to various community organizations on suicide assessments and crisis intervention.
County Mental Health
Services
Operated by: County
Mental Health
Department
This county program provides an array of mental health services to primarily Medi‐Cal beneficiaries and those who are uninsured. Approximately 22,000 children, adolescents, young adults, adults and seniors receive services annually through a network of County‐operated and contracted programs.105 Services range from outreach, peer advocacy, and case management to clinical care and support in a variety of community, outpatient, residential and day programs.
Community‐based
organizations (CBOs)
Operated by: County
Mental Health
Department
CBOs account for approximately half of the public mental health system’s capacity, and they are a key component of the entire public safety net. These CBOs address county residents’ behavioral health needs, including mental health concerns that involve the risk of suicide. The CBOs also leverage other funding sources and operate a variety of programs that address behavioral health needs that are not funded by the County Mental Health Department, such as the Status Offender Services network.
EMQ's Families First
Child and Adolescent
Mobile Crisis Program
Operated by: County
Mental Health
Department
This program responds to the acute psychological crises of minors, offering services in the home, at school and in the community. The EMQ Team responds 24/7 and often facilitates hospitalization and/or crisis intervention services to children and youth who are suicidal.
Emergency Psychiatric
Services (EPS)
Operated by: County
Mental Health
Department
Operated at Valley Medical Center, EPS is the single psychiatric emergency receiving center in the county. The program is key in responding to acute mental health crises that often involve risk of suicide. The 24/7 EPS program provides intervention services to individuals experiencing acute psychiatric episodes and who may be a danger to themselves or others. Annually, approximately 7,500 individuals arrive at EPS on “5150 holds,” brought by law enforcement officers and others. The large majority of involuntary holds specify the “danger to self” criteria.
Mental Health Urgent
Care (MHUC)
Operated by: County
Mental Health
Department
This voluntary unlocked county‐run program also provides residents with crisis intervention services. Services at MHUC, which are available to walk‐ins, are available daily from 8 am to 10 pm. Clients, family members, law enforcement agencies and other first responders are encouraged to use MHUC to meet the needs of individuals experiencing severe emotional or psychological distress, including thoughts of self‐ harm.
Santa Clara County Suicide Prevention Strategic Plan June 2010 Revised March 2011 Page 94 of 136 Police Crisis
Intervention Training
(CIT)
Operated by: County
Mental Health
Department
In partnership with law enforcement agencies, the MHD is continuing to enhance law enforcement officers’ abilities to manage crises involving mentally ill residents. In addition to advocating for more required mental health training for cadets, the MHD is working to ensure that all officers receive Crisis Intervention Training (CIT). In addition to reducing the need for using deadly force, this 40‐hour program can save lives by giving officers tools they can use when encountering individuals who intend to lose their lives by intentionally threatening police officers (i.e., suicide by police).
Golden Gateway
Operated by: County
Catholic Charities
In addition to providing intensive case management and therapy to severely mentally ill older adults, this program conducts extensive outreach to and mobile assessments of homebound or shut‐in seniors who would benefit from mental health services. Golden Gateway’s services are important for preventing suicides in California. Adults aged 75 and over have the highest rates of suicide (California Strategic Plan on Suicide Prevention, June 2008).
Self‐Help Centers
Operated by: County
Mental Health
Department
These county programs offer drop‐in self‐help and peer support for mental health consumers. Three programs provided in North, Central and South county locations offer the unique opportunity for consumers to find support and compassion within a supportive peer‐run setting.
Ethnic and Cultural
Community Advisory
Committees (ECCACs)
Operated by: County
Mental Health
Department
Similar to the philosophy of self‐help centers, the ECCACs are family and consumer support teams from eight ethnic and cultural communities who offer support and linkage to services.
Toll Free Veterans’
Suicide Prevention
Hotline
Operated by:
Department of
Veterans’ Affairs
1‐800‐273‐TALK (8255), and press "1". The Department of Veterans Affairs' (VA) The Veterans Health Administration (VHA) has founded a national suicide prevention hotline to ensure veterans in emotional crisis have free, 24/7 access to trained counselors. To operate the Veterans Hotline, the VA partnered with the Substance Abuse and Mental Health Services Administration (SAMHSA) and the National Suicide Prevention Lifeline. Veterans can call the Lifeline number, 1‐800‐273‐TALK (8255), and press "1" to be routed to the Veterans Suicide Prevention Hotline.
Veteran Suicide Chat
Service
Operated by: Veterans
Administration
www.suicidepreventionlifeline.org. Veterans may use Veterans Chat without identifying themselves or revealing any personal information unless the person chooses to do so. Mental health clinicians on the Veterans Chat do not provide treatment or care. The clinicians will only provide information on services, guidance and assistance, and helpful online resources via Veterans Chat. If the VA mental health clinician with whom you are chatting decides that you are a danger to yourself and crisis intervention is needed, we will ask you to provide a phone number where VHA Suicide Hotline staff may make contact you. However, even at this time, you do not have to provide that information.
VA Palo Alto and Menlo
Park Division
Operated by: Veterans
The Veterans Administration, while not organized by counties, provides a comprehensive array of medical and mental health services for veterans through the VA Palo Alto Health Care System. Available mental health services include 80 acute psychiatric beds; mental health emergency services; voluntary residential rehabilitation programs for PTSD, substance abuse, and homeless services; outpatient mental health treatment including specialty services designed for women veterans and OIF/OEF recent returnees, intensive case management, and specialized evidenced‐based Santa Clara County Suicide Prevention Strategic Plan June 2010 Revised March 2011 Page 95 of 136 Administration interventions for family therapy, PTSD, and addiction treatment. Suicide Prevention Coordinators at the Palo Alto VA track and coordinate intervention and care services for veterans who are at high risk for suicide. Services are provided at a number of VA sites including Palo Alto, Menlo Park, San Jose, Monterey, Capitola, as well as at Vet Centers located in Redwood City and San Jose.
Suicide Prevention Lifeline 1‐800‐273‐8255 (TALK) press 1 for veterans Veteran Suicide Chat Service www.suicidepreventionlifeline.org VA Palo Alto Telephone Care Line 800‐455‐0057
VA Palo Alto Main Number650‐493‐5000
Outpatient Care Clinic
Operated by: Veterans
Administration
Community‐based outpatient clinic in San Jose and local Vet Centers. The suicide coordinators at the Palo Alto VA track and coordinate intervention and care services for veterans who are at high risk for suicide.
Santa Clara County Suicide Prevention Strategic Plan June 2010 Revised March 2011 Page 96 of 136 Santa Clara County Suicide Prevention Strategic Plan June 2010 Revised March 2011 Page 97 of 136 Attachment 3. Best Practices Recommendations
National Strategy for Suicide Prevention Ten Prevention Programs Program Name Description
1) American Indian Life
Skills Development/Zuni
Life Skills Development
The curriculum includes anywhere from 28 to 56 lesson plans covering topics such as building self‐esteem, identifying emotions and stress, increasing communication and problem‐solving skills, recognizing and eliminating self‐destructive behavior, learning about suicide, role‐playing around suicide prevention, and setting personal and community goals. The curriculum typically is delivered over 30 weeks during the school year, with students participating in lessons 3 times per week.
Lessons are interactive and incorporate situations and experiences relevant to American Indian adolescent life, such as dating, rejection, divorce, separation, unemployment, and problems with health and the law. Most of the lessons include brief, scripted scenarios that provide a chance for students to employ problem solving and apply the suicide‐related knowledge they have learned. 2) CARE (Care, Assess,
Respond, Empower)
CARE (Care, Assess, Respond, Empower)‐‐formerly called Counselors CARE (C‐ CARE) and Measure of Adolescent Potential for Suicide (MAPS)‐‐is a high school‐ based suicide prevention program targeting high‐risk youth. Includes a 2‐hour, one‐on‐one computer‐assisted suicide assessment interview followed by a 2‐hour motivational counseling and social support intervention. The counseling session is designed to deliver empathy and support, provide a safe context for sharing personal information, and reinforce positive coping skills and help‐seeking behaviors. CARE expedites access to help by connecting each high‐risk youth to a school‐based caseworker or a favorite teacher and establishing contact with a parent or guardian chosen by the youth. The program also includes a follow‐up reassessment of broad suicide risk and protective factors and a booster motivational counseling session 9 weeks after the initial counseling session. The goals of CARE are threefold: to decrease suicidal behaviors, to decrease related risk factors, and to increase personal and social assets. CARE assesses the adolescent's needs, provides immediate support, and then serves as the adolescent's crucial communication bridge with school personnel and the parent or guardian of choice. The CARE program is typically delivered by school or advanced‐practice nurses, counselors, psychologists, or social workers who have completed the CARE implementation training program and certification process.
Although CARE was originally developed to target high‐risk youth in high school‐‐ particularly those at risk of school dropout or abusing substances‐‐its scope has been expanded to include young adults (ages 20 to 24) in settings outside of schools, such as health care clinics.
3) CAST (Coping and
Support Training)
CAST (Coping And Support Training) is a high school‐based suicide prevention program targeting youth 14 to 19 years old. CAST delivers life‐skills training and social support in a small‐group format (6‐8 students per group). The program consists of 12 55‐minute group sessions administered over 6 weeks by trained high school teachers, counselors, or nurses with considerable school‐based experience.
CAST serves as a follow‐up program for youth who have been identified through screening as being at significant risk for suicide. In the original trials, identification of youth was done through a program known as CARE (Care, Assess, Respond, Empower), but other evidence‐based suicide risk screening instruments can be used. CAST's skills training sessions target three overall goals: increased mood Santa Clara County Suicide Prevention Strategic Plan June 2010 Revised March 2011 Page 98 of 136 management (depression and anger), improved school performance, and decreased drug involvement. Group sessions incorporate key concepts, objectives, and skills that inform a group‐generated implementation plan for the CAST leader.
Sessions focus on group support, goal setting and monitoring, self‐esteem, decision‐making skills, better management of anger and depression, "school smarts," control of drug use with relapse prevention, and self‐recognition of progress through the program. Each session helps youth apply newly acquired skills and increase support from family and other trusted adults. Detailed lesson plans specify the type of motivational preparation, teaching, skills practice, and coaching activities appropriate for at‐risk youth. Every session ends with "Lifework" assignments that call for the youth to practice the session's skills with a specific person in their school, home, or peer‐group environment. 4) Columbia University
TeenScreen
The Columbia University TeenScreen Program identifies middle school and high school‐aged youth in need of mental health services due to risk for suicide and undetected mental illness. The program's main objective is to assist in the early identification of problems that might not otherwise come to the attention of professionals. TeenScreen can be implemented in schools, clinics, doctors' offices, juvenile justice settings, shelters, or any other youth‐serving setting. Typically, all youth in the target age group(s) at a setting are invited to participate.
The screening involves the following stages:
1. Before any screening is conducted, parents' active written consent is required for school‐based screening sites and strongly recommended for non‐school‐ based sites. Teens must also agree to the screening. Both the teens and their parents receive information about the process of the screening, confidentiality rights, and the teens' rights to refuse to answer any questions they do not want to answer.
2. Each teen completes a 10‐minute paper‐and‐pencil or computerized questionnaire covering anxiety, depression, substance and alcohol abuse, and suicidal thoughts and behavior.
3. Teens whose responses indicate risk for suicide or other mental health needs participate in a brief clinical interview with an on‐site mental health professional. If the clinician determines the symptoms warrant a referral for an in‐depth mental health evaluation, parents are notified and offered assistance with finding appropriate services in the community. Teens whose responses do not indicate need for clinical services receive an individualized debriefing. The debriefing reduces the stigma associated with scores indicating risk and provides an opportunity for the youth to express any concerns not reflected in their questionnaire responses.
5) Emergency Room
Intervention for
Adolescent Females
Emergency Room Intervention for Adolescent Females is a program for teenage girls 12 to 18 years old who are admitted to the emergency room after attempting suicide. The intervention, which involves the girl and one or more family members who accompany her to the emergency room, aims to increase attendance in outpatient treatment following discharge from the emergency room and to reduce future suicide attempts. A review of the literature suggests that factors related to treatment noncompliance following a suicide attempt include family discord, maternal psychopathology, attempter depression, and negative experiences with emergency room staff. The intervention consists of three components designed to improve the emergency room experience for the adolescent and family, thereby changing the family's conceptualization of the suicidal behavior and expectations about therapy. First, a two‐hour training is conducted separately with each of the Santa Clara County Suicide Prevention Strategic Plan June 2010 Revised March 2011 Page 99 of 136 six groups of staff working with adolescents who have attempted suicide. Second, the adolescents and their families watch a 20‐minute videotape, filmed in Spanish and dubbed in English, that portrays the emergency room experience of two adolescents who have attempted suicide. Last, a bilingual crisis therapist delivers a brief family treatment in the emergency room.
6) Lifelines Curriculum Lifelines is a comprehensive, school‐wide suicide prevention program for middle and high school students. The goal of Lifelines is to promote a caring, competent school community in which help seeking is encouraged and modeled and suicidal behavior is recognized as an issue that cannot be kept secret. Lifelines seeks to increase the likelihood that school staff and students will know how to identify at‐ risk youth when they encounter them, provide an appropriate initial response, and obtain help, as well as be inclined to take such action.
Lifelines includes a set of components to be implemented sequentially: a review of resources and establishment of administrative guidelines and procedures for responding to a student at risk; training for school faculty and staff to enhance suicide awareness and an understanding of the role they can play in identifying and responding to a student with suicidal behavior; a workshop and informational materials for parents; and implementation of a curriculum for students, the Lifelines Curriculum, to inform students about suicidal behavior and discuss their role in suicide prevention.
The research reviewed for this summary assessed only the Lifelines Curriculum, the last component to be implemented in the larger Lifelines program. It consists of four 45‐minute or two 90‐minute lessons that incorporate elements of the social development model and employ interactive teaching techniques, including role‐play. Health teachers and/or guidance counselors teach the lessons within the regular school health curriculum. The Lifelines Curriculum was developed specifically for students in grades 8‐10 but can be used with students through 12th grade.
7) PROSPECT (Prevention
of Suicide in Primary
Care Elderly:
Collaborative Trial)
PROSPECT (Prevention of Suicide in Primary Care Elderly: Collaborative Trial) aims to prevent suicide among older primary care patients by reducing suicidal ideation and depression. The intervention components are: (1) recognition of depression and suicide ideation by primary care physicians, (2) application of a treatment algorithm for geriatric depression in the primary care setting, and (3) treatment management by health specialists (e.g., nurses, social workers, and psychologists).
The treatment algorithm assists primary care physicians in making appropriate care choices during the acute, continuation, and maintenance phases of treatment. Health specialists collaborate with physicians to monitor patients and encourage patient adherence to recommended treatments. Patients are treated and monitored for 24 months.
Implementation of the program relies on educating primary care physicians to recognize symptoms and apply a clinical algorithm based on depression treatment guidelines for older patients from the American Psychiatric Association, the Agency for Healthcare Research and Quality, and the Texas Department of Mental Health. The recommended first line of treatment is citalopram, a selective serotonin reuptake inhibitor (SSRI). If citalopram does not achieve the desired result, other medications may be added or substituted. Interpersonal psychotherapy may also be used in addition to or instead of pharmacological treatment.
Santa Clara County Suicide Prevention Strategic Plan June 2010 Revised March 2011 Page 100 of 136
8) Reconnecting Youth Reconnecting Youth: A Peer Group Approach to Building Life Skills (RY) is a school‐ based prevention program for students ages 14‐19 years that teaches skills to build resiliency against risk factors and control early signs of substance abuse and emotional distress. RY targets youth who demonstrate poor school achievement and high potential for school dropout. Eligible students must have either (1) fewer than the average number of credits earned for all students in their grade level at their school, high absenteeism, and a significant drop in grades during the prior semester or (2) a record of dropping out of school. Potential participants are identified using a school's computer records or are referred by school personnel if they show signs of any of the above risk factors. Eligible students may show signs of multiple problem behaviors, such as substance abuse, aggression, depression, or suicidal ideation.
RY also incorporates several social support mechanisms for participating youth:
social and school bonding activities to improve teens' relationships and increase their repertoire of safe, healthy activities; development of a crisis response plan detailing the school system's suicide prevention approaches; and parent involvement, including active parental consent for their teen's participation and ongoing support of their teen's RY goals.
The course curriculum is taught by an RY Leader, a member of the school staff or partnering agency who has abilities as a "natural helper," has healthy self‐esteem, is motivated to work with high‐risk youth, and is willing to comply with implementation requirements.
9) SOS Signs of Suicide SOS Signs of Suicide is a 2‐day secondary school‐based intervention that includes screening and education. Students are screened for depression and suicide risk and referred for professional help as indicated. Students also view a video that teaches them to recognize signs of depression and suicide in others. They are taught that the appropriate response to these signs is to acknowledge them, let the person know you care, and tell a responsible adult (either with the person or on that person's behalf). Students also participate in guided classroom discussions about suicide and depression. The intervention attempts to prevent suicide attempts, increase knowledge about suicide and depression, develop desirable attitudes toward suicide and depression, and increase help‐seeking behavior. 10) United States Air Force
Suicide Prevention
Program
The United States Air Force Suicide Prevention Program (AFSPP) is a population‐ oriented approach to reducing the risk of suicide. The Air Force has implemented 11 initiatives aimed at strengthening social support, promoting development of social skills, and changing policies and norms to encourage effective help‐seeking behaviors. AFSPP's 11 initiatives include:
Leadership Involvement
Suicide Prevention in Professional Military Education Guidelines for Use of Mental Health Services
Community Preventive Services
Community Education and Training
Investigative Interview Policy
Critical Incident Stress Management
Integrated Delivery System (IDS)
Limited Privilege Suicide Prevention Program
Behavioral Health Survey
Suicide Event Surveillance System
Santa Clara County Suicide Prevention Strategic Plan June 2010 Revised March 2011 Page 101 of 136
American Foundation for Suicide Prevention: Suicide Prevention Resource Center’s Evidence‐Based Practices
Program Name Description
1. Reduced Analgesic
Packaging
In response to an increasing number of self‐poisonings with analgesics (acetaminophens and salicylates) in the United Kingdom, Parliament passed legislation in 1998 limiting the pack sizes of these drugs. Before the legislation, pharmacies could sell unlimited amounts of analgesic tablets. After legislation, pharmacies were limited to 32 tablets per sale and non‐pharmacy outlets were limited to 16 tablets per sale. In addition to packaging limits, specific printed warnings about the dangers of overdose with these analgesics were included with all sales.
2. Emergency Room
(ER) Means
Restriction
Education for
Parents
The goal of this intervention is to educate parents of youth at high risk for suicide about limiting access to lethal means for suicide.
Education takes place in emergency departments and is conducted by department staff (an unevaluated model has been developed for use in schools). Emergency department staffs are trained to provide the education to parents of child who are assessed to be at risk for suicide. Lethal means covered include firearms, medications (over‐ the‐counter and prescribed), and alcohol. To help with the safe disposal of firearms, collaboration with local law enforcement or other appropriate organizations is advised. The content of parent instruction includes:
1. Informing parent(s), apart from the child, that the child was at increased suicide risk and why the staff believed so;
2. Informing parents that they can reduce risk by limiting access to lethal means, especially firearms; and,
3. Educating parents and problem solving with them about how to limit access to lethal means.
Additional Evidence‐Based Practices from literature review A Model Community
Education Program on
Depression and Suicide
in Later Life
A Model Community Education Program on Depression and Suicide in Later Life, developed by Clara Pratt, PhD, Vicki Schmall, PhD, Willetta Wilson, PhD, and Alida Benthin, MA, Oregon State University Gerontology Department. This is a 3‐hour multimedia program on depression and suicide in later life. Designed for families, older adults, and service providers, the program provides information and teaches skills needed to recognize and respond to depression and suicidal behavior in the elderly. Compared with a Santa Clara County Suicide Prevention Strategic Plan June 2010 Revised March 2011 Page 102 of 136
control group, program participants had significant gains in knowledge and in their intent to take appropriate action in support of a depressed person.
Gatekeeper Training The QPR Institute offers comprehensive suicide prevention training programs, educational and clinical materials for the general public, professionals, and institutions. (QPR stands for how to Question, Persuade and Refer someone emitting suicide warning signs.) QPR is taught by certified instructors in a minimum of one hour, but often extended to two hours for role‐play and practice. The adult learning program teaches lay and professional gatekeepers how to recognize a mental health/suicide emergency, how to Question the validity of suicidal communications, and how to Persuade and Refer someone at‐risk to the next level of intervention. The goal of gatekeeper training is to enhance the probability that a potentially suicidal person is identified and referred for assessment and care before an adverse event occurs. Across our county there are several institutions already providing this training such as Foothill College.
Somewhat related to this is ACT, which also was recommended by committee members. Initiated in 2007, a Navy suicide prevention campaign asks sailors to "ACT" now to save a life. ACT is a three‐step process designed to help determine if someone is suicidal and to prevent them from hurting themselves. It stands for: Ask‐ ask the person if they are thinking of hurting themselves, Care‐ listen and let the person know they are not alone, and Treatment‐ get your shipmate to help as quickly as possible; such as the duty officer, chaplain, friend, medical personnel, or others who can help.
Santa Clara County Suicide Prevention Strategic Plan June 2010 Revised March 2011 Page 103 of 136
Attachment 4. Input from Public Forum
Summary of Public Forum Comments and Input:
On April 28, 2010, the Santa Clara County Suicide Prevention Public Forum drew 108 community participants, 6 of whom were monolingual Vietnamese speakers, and 2 were bilingual Mandarin/English and requested the use of interpreters. The purpose of this forum was to provide an opportunity for the community to provide feedback on the work completed by the Suicide Prevention Advisory Committee and to have their comments inform the Plan.
Participants were offered multiple methods to provide their feedback:
Writing comments on Post‐It notes which were placed directly onto the posters of the work completed to date,
Comment Cards, and
Small discussion groups facilitated by Advisory Committee members.
While not every comment was able to be included in the plan, all comments are recorded verbatim below.
The vast majority of the comments fall into one of the six themes summarized below:
Youth who are transitioning from dependent minor status to independent young adult status—regardless of being enrolled in secondary education or in the workforce. Parental education. The public recommended trainings geared to parents and foster parents to recognize their child’s inner turmoil, address the issue of youth who are raised more by nannies and have low parental involvement in their lives. Geographic isolation. Some strategies should address the issue of geographic isolation for youth as well as older adults already included in the plan. Sharing stories. Participants recommended that individuals who had survived their own attempted suicide share their stories to educate and inspire people. Public recognition of life savers. Participants recommended that individuals who help bring people in crisis to an intervention resource be publicly recognized with a certificate or award as a means to raise the profile of suicide prevention and encourage others to consider doing the same.
Stress and stressors, transitions and dysfunction in personal relationship skills. Several individuals commented on homicide/suicides preceded by stressors combined with poor coping and anger management skills. Some stressors discussed were the pressure to achieve and succeed; divorce; loss of job; racism; all prejudicial behaviors; reentry into Santa Clara County Suicide Prevention Strategic Plan June 2010 Revised March 2011 Page 104 of 136
society after criminal justice involvement. This issue/need should be framed as, for lack of a better description a “tipping point.”
Below is a transcript of the small group discussions based on notes taken by Advisory Committee members. Before each comment/question an empty box means we have not identified or addressed the main point of the comment. A black “X” indicates that the comment submitted had already been discussed and included in the Suicide Prevention Plan prior to the Public Forum. A blue “X” underlined indicates inclusion in the plan after the public forum. Those comments without an “X” and not included in the plan at this point may be considered again during the implementation phase of the process.
Santa Clara County’s Mental Health Department hired consulting group MIG to draw a 12’ wide, 4’ tall summary of the night’s input that is referred to in the notes below as a Wall Summary.
This graphic illustration is included on the Santa Clara County Mental Health Department’s Suicide Prevention website—www.sccgov.org/spac .
Addressed
by
committee?
Comment or question
Group 1
X Encourage the community to talk about suicide and for those who have experienced or attempted suicide to be able to share their stories.
X [We need] a systematic approach for all ages.
One that connects the steps, address all ages, honors those who died through suicide with the gift of their stories.
X Need an instrument that would enable the community to understand the journey one takes in even contemplating suicide ‐ let alone attempting or even completing suicide
X Be creative and use social network sites
X have the
category
Prevention strategies should be a separate category ‐ not placed under intervention
Missing best practices in state of California like Healthy Start‐ offer education at a younger age.
X‐ PEI,
Integration
efforts
Multidisciplinary [approach] is key, look at [what] already exisit[s] i.e. student study teams like the Education Model SST (student study teams) utilizing multi‐disciplinary experts
X Stories [are] very powerful, they can touch the heart; stories [can be used] to prevent/ intervene as a means [of] outreach community is a real experiences/ nurture the story and honor an individual.
X‐ Requested
data
Is there research specific to cluster/ “copycat” suicides? X Alcohol/ substance use, meth[amphetamine] [induces a] morbid way of Santa Clara County Suicide Prevention Strategic Plan June 2010 Revised March 2011 Page 105 of 136
thinking and [morbid] emotions, but [they are] not always connected. It may entail body chemistry.
X Working in jails‐ the Mercury News is not on the front page. (Scribe’s not sure‐Suppose is that suicide in jails is not given much media attention but that it’s a real issue) Jail is high risk population
X Regarding the elderly, most see their doctor. How many doctors ask directly questions of life and death and refer [them to mental health].
X Use of community centers to provide a safe environment where youth are able to discuss, talk about the topic of suicide and support discussion with those who’ve experienced traumatic events‐ [they can] speak about how they coped.
X PTSD [is] connected to suicide
X Positive aspect‐ social networking sites or dollars, resources are cost effective ways of reaching out and educating after an event. Questions [can be] asked, [ie.] how is this affecting you?, etc.
X Problems [can] be worked out via [public] health model rather [than] a disease model.
X‐ Listening
Campaign
P[alo] A[lto] [is] using creative strategy ‐ talking to youth. [They have organized] 3 youth focus sessions and asked and learned from the youth.
Listen to the wisdom of the youth.
X PA hosted a youth gathering ‐ youth were invited via social network sites ‐ youth showed up and openly talked about the crisis of suicide and the reality of suicide from a young person's point of view
X Los Gatos [is an] isolated community. Folks [are] worried about [their] children because of the isolation. [There is no] outreach and they’re hurting. Outreach in geographically isolated areas
X Strategy: School Districts with physically isolated students dealing with trauma (i.e. suicide or cluster of suicides) can connect with other districts to share what is being done re: outreach to geographically isolated community members, students who live in the isolated area of the Loma Prieta School District.
X Violence‐ Domestic Violence [and] homicide [are] linked to suicide:
ie. Vietnamese families killed by father who in turn kills himself.
X Companies are utilizing experts to provide workshops for employees who are to be laid off ‐ coping strategies, stress release techniques, etc. so that laid off employees will have the ability and tools to cope with the anger and transition instead of having the rage prompting the laid‐off employee return to their former place of employment with weapons, killing co‐workers and possibly themselves. Recommend policy and governance with for‐profit training and awareness
X‐ Communi‐
cation
practices
[This requires a] paradigm shift. [Suicide is a] public health issue. [We need] understanding. The need for propaganda (mass public awareness campaigns) [like were used for] child seats in cars, smoking, etc. [This requires a] long term Santa Clara County Suicide Prevention Strategic Plan June 2010 Revised March 2011 Page 106 of 136
approach. Paradigm shift may take time but in time suicide will not be seen as an option.
X Bring youth and adults together. Use fishbowls (held in a safe environment).
Develop [a] dialogue, share honestly and be heard.
Adults [need to] listen when there’s an opportunity to provide feedback after the youth have shared‐ [this applies to] numerous topics [like] identity, sexuality, substance use, Mental health, depression, stress. Allow [the youth] freedom to give [their] voice.
Provide tools for communication utilizing fishbowl strategy, community centers, and social networking sites.
X [Adults need to] remember back to [their] youth [when we were asking] what’s the meaning of life? Where’s the spirit? Is there no value in one’s life? Where is this going? [All the] outside influences [that affect them] economy, the government, people’s spirit is dying. Neighborhoods, racial groups, a lot of faiths, are not valued anymore. Where’s one’s [own] identity? [Do you] Find meaning in your work? [All of this needs to be] attached to the spiritual component. Allow the spirit of life (faith) to penetrate.
X [Suicide prevention/ everything] starts with policy. In Santa Clara County [we] need to declare the value of life. All groups [are] affected. Need to be grounded‐ all of life is valuable. Perhaps [we’re] afraid to talk about the spirit.
Talk[ing] to those who are hopeless or [in a] hopeless state is not that helpful (is that what was said?). [People] need the connection, reflective relationships, need to be valued and appreciated. All endeavors [should] come out of that.
X Workers who are just collecting a paycheck vs. workers who are engaged, happy, vivacious. Such agencies/ institutes are welcoming, warm and those who use the facilities are in turn happy, passionate, i.e. teachers who have a passion that spirit shows.. The opposite is true as well, Vivacious work force X Students do not have tools to deal with life. Adults need to come in and hopefully they possess the tools needed. Kids gravitate to exciting teachers.
X Police Department in Los Altos (kids) parents [are] very disengaged, kids [are] being raised by nannies. [Parents don’t know that their] kids are suffering from a tragic event, using drugs, mentally ill. Parents connect with our children.
Police: Speaker shared feeling sad, compassion and sympathy when responding to a suicide call that involves a youth. However police often have little or no compassion and often even feel anger when responding to a suicide or attempted suicide call of an adult. Behaving this way is used as a means of getting a reaction from family members, spouse, significant other.
Differentiated police response to suicide (of youth versus adult) Group 2‐ This group (comments below) consisted of representatives from Redwood Middle School, the Director of Health Services from West Valley College, representatives from an Independent Living Program, a representative from Elmwood Correctional Facility, and a few community members. The group mainly discussed building a common language, educating on Santa Clara County Suicide Prevention Strategic Plan June 2010 Revised March 2011 Page 107 of 136
all levels, better training volunteers, and providing more resource centers.
Addressed
by
committee?
Comment or question
X One resident feels that parents do not have tools for prevention. We need to have early education, awareness, and focus on mental health. Suggestion: Offer information once the mother gives birth at the hospital.
X We need to develop a method to help the community understand that mental health is OK. Promote help seeking behavior
X Elmwood representative feels that we need to educate within the correctional facility and help women cope with their emotions as they readapt into society.
X A local feels many (community members) believe that more awareness would lead to more suicidal cases—we must somehow lower the stigma, and we need more educators to be involved to help increase awareness. “Silence is killing them”. Stigma reduction
X Another local would like to see more involvement with survivors. Professionals have great knowledge about the subject, but having a resource with the same experience will have a larger impact and understanding. Sharing stories, peer programs
X We need to train more volunteers who want to prevent, educate, and aid mental health.
A representative from independent Living Program states that there is a lack in financial aid. We have resources outreaching to schools. However, we have forgotten about those who are not in schools. Perhaps, we should build resources in Juvenile facilities too.
• Where are other resource centers other than schools?
• Can we provide financial aid to help those with mental health issues? X We have sex education, drivers’ education, etc. But we don’t have a program for mental health? Awareness and education
X We do have a program called Mental Health First Aid—perhaps we need more promotion.
Group 3‐ Participants (comments below): Community Member (wife of a man who committed suicide); Doctor; LACY Member (Social Worker); Council Member, Palo Alto (son had mental health issues); Community member (son committed suicide); Community Member‐2nd Harvest Food Bank; Mental Health Social Worker; School Psychologist; School Counselor X The group discussed the need to have forums that include not only psychologists and social workers but also family members of suicide victims and those who have attempted suicide to discuss their personal experiences, system failures and warning signs. Listening Campaigns X/ X / X Many of our group discussed the need to have a strong prevention strategy and to have discussions with children when they are young and the need to have talking points for pre‐teens.
X Our group also discussed the importance of sharing personal experiences and Santa Clara County Suicide Prevention Strategic Plan June 2010 Revised March 2011 Page 108 of 136
warning signs. Share personal stories
X Our group discussed the lack of availability of services/resources at schools and the need to have a 24 hour telephone number to call to access mental health services.
X We also discussed the need to have teens understand when they have to make a call to someone when they suspect that their friend is having difficulty. This might put adolescents in a bad position however when someone’s life is in jeopardy it is critical to call someone who can slow things down and make an assessment (adult, law enforcement, teacher, counselor, mental health professional, clergy). So an education strategy designed to educate young people about getting their friend help would be an asset and would be a valuable asset for our youth.
X One group member was very complimentary of the QPR.
X The Doctor wanted to hear more about how we can communicate within the various communities to ensure that people are not slipping through cracks.
X
X
The matter of de‐stigmatizing mental health was discussed widely. We also talked about how we need to have a paradigm shift‐much like how our community has changed its views on drunk‐driving. We thought that we could learn some lessons from MADD and that they could be a model for changing the discussion on mental health in the community.
Addressed
by
committee?
Comment or question
Group 4
X Some of our group was surprised about the data on the frequency of suicide among seniors.
X A couple of group members remarked that there was a need to have post‐ incident care or post 5150 care to ensure that family members and the patient were aware of the resources available and that they were not experiencing destructive tendencies.
X Our entire group agreed about the importance of the community ownership and that we all have a responsibility.
X One of the Community members announced that Stanford University Medical School has a Bi‐Polar Education Forum involving families, educators and researchers.
X Another community member recommended the City of Palo Alto’s Family Resource Center which offers monthly meetings to discuss resources available to the community.
Webinar
X‐ CIT
Fremont Unified School District in Sunnyvale has done a Webinar on Suicide Prevention, approximately 20 minutes long and it discusses how resources can be accessed. They have also developed a Crisis Intervention Team at the schools with multi‐discipline resources available.
X A community member recommended that there should be specialized training for counselors at schools when there is denial amongst parents regarding the Santa Clara County Suicide Prevention Strategic Plan June 2010 Revised March 2011 Page 109 of 136
mental health issues involving their children.
We had a lively discussion about respecting the privacy of children while being concerned about their mental well‐being.
X A group member recommended having a guest speaker named Kevin Hines come and talk about his experiences being bi‐polar. Share personal stories X One community member recommended that there be training given to physicians about the type of medications that they prescribe to their patients and how some could have adverse effects on them and even promote suicidal thoughts. Training would recommend that spouses/family members would receive information about certain types of medication and the warning signs.
Provide support to Primary Care for mental health issues.
X We also discussed the need for additional information, awareness and training for Parents, Teachers, Firefighters and the clergy to identify those at‐risk and how to access services.
X
Plan is well written. I came to see how [such a plan] can be effectively implemented in ethnic/ cultural communities. [The] rec[ommendation]s are summaries, but [the] specifics needed (sic) to take back to [the] communities.
X Emotions and emotional awareness aren’t taught. [We need to] teach emotional awareness/ intelligence. [The] education system can teach emotional awareness; and should be] supporting [youth] exposed to suicides.
Youth sometimes suicide through drug abuse or car crashes. Kids now feel more helpless and hopeless. Don’t know how to fit in. Drug and alcohol use is up. Prevention dream: Health Education would be taught in schools and address emotions. Kids need tools.
X Fo[ster] Parents aren’t mandated to take MH awareness and it’s needed.
Foster parents [in] (her experience) [are] in it for [the] money. ([She is a] former foster child) Depression, self mutilation [is] ignored. Focus on foster parents. Lots of training on MH awareness. Public media messages on where to get help.
X *NAMI Member‐ Parents and Teachers [should work together as] allies. ‐Teach teachers about [the] onset of mental illness in youth. –[Has trained] 1 school thus far. Raise awareness among educators
X Stigma to suicide. People don’t want to talk about [it], even within groups that should be comfortable with it. *Suicide [is] “taboo” within mental health.
Mental health professionals, consumers, and their family members should be more willing to talk about suicide, with the ease they have discussing a diagnosis.
Challenge to confidentiality and talking to family members, [HIPPA] creates barriers. Can doctors inform family members? How do they address [the] risk? X Suicide cross[es] economic barriers. Suicide [Has a] huge impact on families. office of Human Relations Commission will be focusing [on] disseminating prevention information.
X [I] Became involved because of Palo Alto Suicides. Effectiveness of means Santa Clara County Suicide Prevention Strategic Plan June 2010 Revised March 2011 Page 110 of 136
restriction as [a] prevention strategy. Focus [should be on] bridge barriers, train track monitors. Peopl e today lack emotional connections, need to connect with people. Increased caring, increased communication X Schools have a huge role to play [in] [re‐defining] norms, de‐stigmatizing help seeking.
X Latino community does not want to acknowledge or talk about [suicide]. [Latinos] need more information in community. Culturally appropriate prevention information is needed.
X Lot of education [is] missing. Don’t use the word “commit” suicide because using “committed” [makes it seem like a] crime and [reinforces] stigma. Should use “died by suicide”. Change terminology
X Kids don’t feel there’s a stigma, they talk about it. Adults don’t want to talk about [suicide]. De‐stigmatize
X Schools have cut student support staff. Teachers have no training and are not equipped. Educate all teachers. Don’t just [train] special education [teachers], support staff need to know [and] recognize the signs.
X The entire community must be trained, neighbors, shops, families. [This should be framed as a] public health approach.
X Media should always inform where to get help.
Addressed
by
committee?
Comment or question
Group 5
X
Q: What are the political benefits to bringing the issues to people’s awareness?
A: There’s believed to be an awareness problem there’s a belief there’s a lot of stigma connected to suicide though people are reluctant to speak out about what they are feelings.
X
Q: What are the political benefits to bringing the issues to people’s awareness?
A: There’s believed to be an awareness problem there’s a belief there’s a lot of stigma connected to suicide though people are reluctant to speak out about what they are feelings.
X
Q: Everyone has limited budgets, is there good information about efforts that save the most lives…?
A: The committee has taken the position that it’s a public health problem in all communities. It’s tactics/ design is to raise awareness and address what Santa Clara County Suicide Prevention Strategic Plan June 2010 Revised March 2011 Page 111 of 136
strategies are most effective to prevent suicide.
X C: There are various components to address the problem but we as a community need to gather all the various components to address the problem; people need to be able to talk about it.
X C: Loved ones need to sacrifice the time to share; with their family members; time to express concern; loved; etc. to let the individuals know that “they care about them” they will be missed.
X C: Concerns around teenagers because of programs being cut; kids not being able to access counselors or help due to the cuts. Age appropriate access to care
X C: Due to oversized classes and lack of funding teachers can not address the problems at hand. Schools united in awareness‐ budget and time limitations X C: General overall consensus on expansion of community led services and programs and/ or peer‐led programs.
X
C: Communication seems the overarching gap like with education; desensitizing stigma make it easy for people to talk about. The media needs to be used as an outlet or resource; we need to build relationships with media people and they need education and sensitivity developing relationships with media.
X C: School age kids‐ Offer Mental Health First Aid to be able to train the school staff to help deal with these issues.
X C: Parents can take simple steps; do little things like having dinner with a child that will make a difference.
X C: Several members felt that strengthening and using "natural" community resources such as church, clubs, etc would be helpful so people could get help there either instead of MH providers or in addition to MH provider help.
X C: We have around us everyday access to people who have attempted suicide.
Why aren’t they the “go to” people leading our efforts to finding the answers of where things broke down and what would have helped them to “not” follow through with an attempt. Attempters Sharing their Stories Addressed
by
committee?
Comment or question
Group 6
Policy and Governance Advocacy
X Partnership between primary care and mental health care professionals is critical.
Policy and governance advocacy may put too many regulations in place. This regulation’s category is too broad. This may inhibit individuals from seeking care.
X More support of primary care is needed. Individuals may not reach out to MH professionals.
X Doctors and mental health care is not working together which is detrimental.
HIPPA [due to HIPPA/ or has HIPPA become a barrier to care]. They are Santa Clara County Suicide Prevention Strategic Plan June 2010 Revised March 2011 Page 112 of 136
currently two separate entities that need to be one. Concern that HIPPA inhibits MH Professionals from other providers; mandated which would impact policy procedure. Division on whether would be a good thing or negative.
Concern to maintain confidentiality while maximizing collaborative care.
X Public Policy takes away the humanity. [We need to] always go back to [the reality] that it’s about people. Regulations and policy should not become barriers in and of themselves.
X Protection of the individual [is a] double‐edged sword. [Need to] Open up communication. Becomes less private and less people will seek help. Policies such as mandates for reporting or asking questions may increase concern for confidentiality and may discourage people from seeking help. [Need to find a policy that is] more open [in sharing patient’s information with loved ones] but still protecting privacy.
X Hospitals don’t report suicide attempts. Should be mandated that hospitals report suicide attempts and that those individuals receive follow up care that is standard protocol.
X Root causes [for suicide] need to be looked at.
Community Education & Implementation
X Outreach‐ Paramedics, EMS, and EMTs have no idea of [the] existing hotlines.
Law Enforcement and firefighters receive little education on these issues. May benefit from in service‐type training.
X [EMS are] taught [to] treat the injury, not the person. Felt that the SACS training was very helpful. By recognizing potential mental illness, helps to interact.
X Law enforcement/ EMT/ Fire fighters, (first responders) [need to have] condensed in‐service type training [and] in‐depth [trainings] Intervention
X Caltrain needs to evaluate entrances where [people] in duress can enter [the train tracks]Means Restriction
X [Schools need to] Address bullying at schools. Parents need to be responsible as well. [Need] outreach for child [or youth] who is being bullied to let them know [what] resources [are in] place.
[Need] a call box at the tracks.
Addressed
by
committee?
Comment or question‐ Monolingual Vietnamese Group 7
X One member shared he attempted suicide when, after being diagnosed of MH, his family insisted that he stayed in an institution and not come home. stigma X One member shared he attempted while using drugs substance use X One member shared she thought seriously about suicide when she came to this country, without family members, lost her job and was evicted. Social isolation, refugee/ immigrant experience
Santa Clara County Suicide Prevention Strategic Plan June 2010 Revised March 2011 Page 113 of 136
X One member shared her husband attempted suicide due to family situation (divorce) and is now paralyzed on one arm. Loss of loved one Cultural issues
X Recognition that Vietnamese families put a lot of pressure/expectation on family members for achievement levels, education levels, marriage social roles and pressure
X Severe stigma around Mental Health issues due to cultural belief that Mental Illness is shameful, punishment, karma; we do not get services for loved ones but hide the condition.
Policy and Governance advocacy
We ask for more compassion from the legal system, that people who commit crimes and admit fault be forgiven, or they are led to suicide X Strict immigration laws causes distress in individuals and families, some are led to self‐sacrifice/sacrifice
X Unemployment have caused to families to die in group. Drop in economic level X There is a lot of stress in the workplace which can lead to suicide Practical suggestions
An easy‐to‐remember short hotline number such as 5‐1‐1
X Recognize, give award to people who have prevented another person from attempting suicide.
Addressed
by
committee?
Comment or question
Group 8
X Gathering Data‐ [It] really struck [a] cord about finding out the why. If we know [the] why we may be able to figure out why not.
X Stigma applies to mental illness. Hope to change viewpoint and educate [the] public about [the] crisis of suicide; bring it out of the closet. Important for gaining political and institutional support.
X TV advertising for prevention.
X Actuarial costs of suicide in dollars and cents. Young people are worth $1.5 million dollars for [the] economy. Talk about the money saved by providing prevention programs. If we can sell products we should be able to sell something good like suicide prevention.
X Cultures‐ [In many cultures] mental health [is] taboo. Advertise [messages promoting] seeking mental health [services] would reduce suicide.
X Prevention is not broken out sufficiently in the plan. Would like to focus on Santa Clara County Suicide Prevention Strategic Plan June 2010 Revised March 2011 Page 114 of 136
suicide prevention rather than intervention. How do we make children feel connected and supported? [ie. Examples of ways to connect youth] Service Learning, Building friendships, asset building‐ like Project Cornerstone.
Prevention beyond Intervention.
X To do this, educate parents in families where mental health taboo exists.
School may be [the] best place to introduce this. Suggested 15‐20 minutes as part of curriculum.
X We talked about what we are doing to talk positively and supportive. What are we doing to empower them [youth], to give them [youth] voice, make them [youth] feel supported, develop friendships. Need to positively message this to the community. We are teaching kids about eating healthy, exercising, we should be teaching them about how to take care of their emotional needs.
X Decrease isolation for older communities.
X Gangs, family issues, drugs, prison
X Concern regarding how medical establishment passes out antidepressants without education and [these] can increase [risk of] suicide. We need to get to medical establishment[‘s buy‐in].
Concern regarding drug company advertisements that suggest that pills fix everything.
X [Older Adults struggle with the] Feeling of [their] being a burden. [Suicide should not be considered as a] selfish act.
X [Older Adults struggle with the] Feeling of overcoming death and pain.
X Middle aged: Poor economy, lost jobs.
Strategies
X Workplace education to provide education [on mental health issues and suicide awareness], similar to Air Force Academy efforts‐ getting MH services is not a bad thing. Identity may be wrapped up in job and if one loses job, [people experience a] feeling of lost identity. [Stress is magnified by being] Combined with loss of insurance. [Advocate for a] Law on [requiring businesses to issue a] page of contacts and information regarding insurance options and resources. This could also be available as posters in unemployment offices.
X Support groups for people feeling suicidal.
Offer trainings for Senior Management – services available and general awareness on issues like domestic violence (to avoid homicide/ suicide); depression, etc.
X Train critical professions on suicide prevention and awareness: Cops, Teachers, Clergy. They Need to understand when to turn folks over to other services.
Cultural Issues:
X Difficult to seek outside help for mental health. [Culture dictates that people are] supposed to be able to treat [themselves] within the family. Cultural values, stigma
X [It is] Essential to have someone from the same culture reach out within a Santa Clara County Suicide Prevention Strategic Plan June 2010 Revised March 2011 Page 115 of 136
culture. Culturally appropriate outreach/ inreach within a community X Spread the word in mosques, churches, temples, etc. Clergy would likely welcome resources.
Comment Cards
Comment
Card
In
Plan?
Comment/ Question
A. Everything was very good information and how to help other to live better and happy.
Communication Practices: Communications and more resources and work shops like this is (sic) very outstanding.
X Intervention Strategies: [Offer] Programs after school and more counseling.
Other Comments: Very good.
B. X Policy & Governance: Mental Health, Domestic Violence, Alcohol and Other Drugs, Violence in the workplace/ school all share common prevention themes. Address issues of general community well‐being that would be the foundation of community well‐being in the media campaign.
X Community Education: Need to include [the] entire community[,] so that means engaging workplace/ employers, like HP, IBM, Bank of America et al.
Their issue is workplace violence/ suicide. What does Employee Assistance Program (EAP) do?
X Communication Practices: If IBM says being a good parent is a corporate value and supports that, parents [employed there] will listen.
C. X Policy & Governance: Leaders must be first educated about what needs to be & how they can help.
X Community Education: Information should be reliable where people can get it & in multiple places‐ all media forms, schools, etc.
X Communication Practices: Educate & advocate not using the word “commit” in context of suicide (negative).
X Data Collection and Monitoring Activities: Mental autopsies of victims & attempters. Psychological profiles
X Intervention: Access to means to self harm should be restricted as much as possible. Teachers & schools should help is de‐stigmatizing mental health.
Means Restriction
Other comments: Thanks for your work on this.
D. X A big effort, but not new and effective plans. From now on, cigarette smokes (sic) is pushed into death end. No more place for them to smoke.
Non‐smokers take advantages and harassed cigarette addicts a lots (sic) Be careful!!!! (sic) Paradigm Shift
X Community Education: To educate people is not effective is to give people awards, even though it’s just a letter from authority or a certificate.
Communication Practices: Authorities and specially psychiatrists & case Santa Clara County Suicide Prevention Strategic Plan June 2010 Revised March 2011 Page 116 of 136
manager act according to work rules, but not help consumers with all their hearts. Please educate them first.
X Data Collection and Monitoring Activities: [Is] Needed but don’t go into personal detailed information.
X Intervention: Prevention is more priority. Need hotline personnelle (sic) to be able to help people in trouble some suggestion to get out of it practically. Don’t ignored. (sic) And remember to follow up. It may recur.
X Other comments: I has (sic) some problems myself that can’t be told.
Please think about some ways to detect or discovered (sic) a person’s suicidal thought. Public Awareness and Empowerment
E. Other comments (0‐15, 16‐24): We need emergency phones that connect to suicide prevention at the [train] tracks in Palo Alto. Kids would not want to use their own cell phones for that because they do not want to leave any trace.
Santa Clara County Suicide Prevention Strategic Plan June 2010 Revised March 2011 Page 117 of 136
Santa Clara County Suicide Prevention Public Forum
POST‐IT NOTES
From Poster Boards
I. Policy and Governance Advocacy
1. New Strategies
Consider putting (real) phones on hot spots so people can call for help when feeling suicidal.
X Additional idea: National Suicide Hotline. Consider idea to create a national number such as 1‐800‐CHOOSE LIFE (or local city number that transfers to hotline #).
Preserve continuity of services: exclude County‐contracted services from the General Fund.
X Really focus on schools – even at the elementary school level.
X Consider an advocacy day (SACS) during May or other suicide awareness month X Need to build bridges with law enforcement and other first responders.
X Bring a victim to share a story (if possible). It will help to change and enforce positive change.
a) Edits to Strategies
X Raising awareness and educating everyone of all systems and partners of their key roles and explaining what the key note is.
b) Additional Comments
X Countywide hotline is not new. In fact, it can’t exist (sic‐ function well) when the receivers or staff on the other side are not necessarily culturally and/or linguistically competent!!! It would be more practical or personal to contract out with community‐ based ethnic group or entity to do it. To be model friendly, use grassroots not just contract agencies or county employee hotline, etc.
c) Wall Graphic
There are pros and cons of all policies
X Look at the root cause of individuals who die by suicide X There are political benefits of increased awareness
X Suicide is a public health problem
X Partnership with primary health care professionals – this is critical Government shouldn’t be too heavy handed
Santa Clara County Suicide Prevention Strategic Plan June 2010 Revised March 2011 Page 118 of 136
X Hospitals must report suicide attempts
X Leverage funding and get the “best bang for our buck” Immigration rules are tremendous on the individuals – need to integrate more compassion
II. Community Education and Information
a) New Strategies
Right focus re: recreation centers after school. Not try to shut them down, no money for the education.
Have a forum of “experts” of people who committed suicide. Tell what went wrong.
Ask therapists to attend, but the first speakers should be survivors.
X Have special programs that worked in the past. Ask community what will work.
X Have special programs that target youth families.
X Make prevention and intervention strategies more accessible to concerned friends and relatives. (Aggressive campaign – poster boards, community presentation) X More volunteer program, keep them [youth] busy and out of gangs X Include community education workers that speak the many languages spoken in this community.
X Training and police officers responding to 5150 calls.
X Have more training to target youth.
X Sounds good the plan will work out well. Encourage the loved one to talk about it. b) Edits to Strategies
For grief counseling, lower the requirements to be helped. Educate people that crisis line is also for mental health support.
c) Additional Comments
X Your suggested strategies for community education and information are excellent.
People need to be desensitized to the subject to feel empowered.
SACS does outreach we used to do more than now. Volunteers for this are difficult to keep the same 2 or 3 people were doing all the outreach talks.
X Make sure you publicize as much as possible. Get support from City Councils and get the word out to the public.
d) Wall Graphic
X 24‐hour telephone service, center
X Educate peers to take next step, training
11 Santa Clara County Suicide Prevention Strategic Plan June 2010 Revised March 2011 Page 119 of 136
o Parents
o Teens, pre‐teens
o Teachers
o Firefighters
X Access points for resources, schools
X Tools for communication
o Fishbowl technique
o Social networking sites
X Heighten awareness
X Need to repair communication break down
X Normalize conversation around suicide
X Advertising for prevention
III. Communication Practices
a) New Strategies
Reassuring the victim that everything is confidential.
X Have forum with suicide attempters. Talk about their experiences.
X Better educate foster parents particularly. Social workers, teachers on how to spot ones in trouble.
X Have talks and trainings in the schools. Involve the youth in trying to define messages.
Everyone who wants a job in the County Psychology Department needs to go through SACS training first.
X Your strategies for communication practices are excellent. I would only add developing strategic relationships with the media – otherwise it’s “whatever bleeds, leads!” X Use communication resources that connect with youth.
Respecting the privacy of the victims of suicide is key, especially for minors.
X It’s good! I think to use authentic community leaders who are much familiar to the residents and cultural groups of their own communities would be much more effective judge than the county.
X Encourage the attempts to talk about his/her crisis.
X Every 1st responder: police, fire, EMT – gets SACS training.
X Use communication resources that connect with specific communities. b) Additional Comments
Perhaps obituaries or death notices might say: “was so depressed he committed suicide” (and did it by….)
c) Wall Graphic
Santa Clara County Suicide Prevention Strategic Plan June 2010 Revised March 2011 Page 120 of 136
X Change paradigm – DUI, smoking
X Gift of story
X Welcoming, vivacious spirit
X Media is a resource
Needs to be educated, how to communicate message
X Churches and temples – places other than schools
X Hotline number is too long – need a 3 digit number!
X Public health issue
X Develop common language
IV. Data Collection and Monitoring
a) New Strategies
List failures of the treating therapists and doctors. List anti‐depression medication the person was taking. List medications on which the person suicided.
Use things that work/didn’t work. Then find solutions.
X Collect statistics on suicide attempts. Especially teens.
X Ensure continuum of data collection and analysis cross systems.
X From the current data, you had online I noticed specific zip codes with high rates of suicide this information is critical to developing targeted messages for each community.
X Encourage the attempter to talk about his/her crisis.
Start keeping data on how many suicides were taking Paxol and other SSU medications for bi‐polar
b) Additional Comments
X Psych[ological] autopsy.
c) Wall Graphic
X [Monitor?] Caltrain entrance sites
X Examine, study group deaths
V. Intervention Strategies
a) All Ages
Resist the effort to medicate[.] [Mental Health?] centers closely monitored X Make it not‐taboo to talk about
b) Wall Graphic
X Community ownership
Santa Clara County Suicide Prevention Strategic Plan June 2010 Revised March 2011 Page 121 of 136
X Take time with the individual
X Cultural differences – severe stigma against mental health Same cultures need to support each other
E.g. Vietnamese culture
X Honor, aware people for work with suicide prevention
X Stigma in discussing suicide even in mental health profession.
Children and Youth Ages 0 to 15
a) New Strategies
X Listen to them and need to respond to bullying
X Bullying at schools by peers on (sic‐ to) a teachers and administrators.
X Training with at‐risk to hear their concerns and how they would like to be listened to.
X Developmental Asset Building for youth – Project Cornerstone Teen support groups for survivors of teen suicide.
Youth involved in community service.
X Involve schools in planning prevention pre K through Grade 12 Additional idea – introduce the season(s) for non‐violence (begun by Gandhi’s grandson in 1997 at the United Nations to schools. Give teens and teachers idea to incorporate suicide prevention into the nonviolence curriculum. Utilize PSA’s radio and television.
X Advertise, advertise, advertise. Foster parents especially.
X Racism leads to feelings of low self‐esteem, depression, helplessness, etc. This continues for all ages.
X Increase curriculum involving self‐esteem and ethics or “telling” someone older about a potential problem, encourage. Also teach “responsibility age‐specific level” X Important not to “single out” at risk kids. Better to make broad strokes.
Have teachers compliment students example: “Good question, Joe!” Developmental Assets: Project Cornerstone.
X Use social networking potential.
b) Edits to Strategies
X You forgot prevention: should be a separate category.
X Include reaching out to students experiencing academic difficulties Prevention strategies should be formulated:
Youth Developmental Assets; Caring school environment; Service Learning c) Additional Comments
X Racism against Latinos is high!
Santa Clara County Suicide Prevention Strategic Plan June 2010 Revised March 2011 Page 122 of 136
X I think the most important thing is a societal shift to isolating individuals less. This is a cultural issue. E.g. computer culture.
X Listen to youth! Be a friend not a stranger!
d) Wall Graphic
X Parents need to connect with kids, youth, teens
X Bullying in schools: outreach, parent support needed
X Dinner with your children
X Educate – healthy foods, exercise
X Empower kids, youth, teens
Youth and Young Adults Ages 16 to 24
a) New Strategies
X Moving, family relations, unsatisfying work – pressure once returned to house of origin X Parent‐child communication training workshops including teens and parents X Internet
X Youth forums: to hear our youth – what do they day they need? X Peer counselors opportunities to get trained in age‐specific ways in crisis intervention and discussing the “ethic” or “telling”
Community service for youth
X Training and police officers responding to 5150 calls X Services list of therapists – hospital with adolescent units Peer to peer college student training and education – early detectional screening in college health services
X Making resources, help lines more obvious and culturally sensitive X Strong need for prevention strategies. Should be called out! X Include bullying issues
X Educate parents about how to address mental health issues – that may emerge when their students are away at college
To finish the high school and get the diploma or GED
Tell teachers to compliment students, e/g/ “Hey Joe, that was a good question!” Like peer stipend program – may listen to them more than adult X Treating suicide as a medical issue it could be argued is culturally biased already…However, I think if you look at your whole program you do not focus on the medical side only.
X If screen people, where are the therapists/hospital beds to put them if needed? X Comprehensive health, curriculum including social, emotional health School nurses should be involved!
X Education! Training of educators, community leaders, parents, youth about signs and calls for help!
X Individuals with physical disabilities – including but not limited to injuries that changes an individuals life? Exp – head injury, parapalegic, quadrapalegic, stroke, etc.
X Immigration or refugee concerns acculturation stress linguistic cultural riff X More information on suicide prevention is needed in Spanish Santa Clara County Suicide Prevention Strategic Plan June 2010 Revised March 2011 Page 123 of 136
X Training targeting high school/community college (administrators, discipline, guidance counselors, staff)
X More sensitive and compassionate media coverage needed b) Edits to Strategies
We need prevention! Separate category
c) Additional Comments
X Listen to youth! Make connections, be a friend.
d) Wall Graphic
Budget cuts in schools impact counseling. Need community‐based counselors/peers Adults Ages 25 to 59
12‐step model
X No cost counseling or crisis services
X Intervention strategy for adults – tie your intervention with de‐stimatizing desensitizing to subject normalizing seeking help and providing hope
Class versus counseling – and counseling when needed
X Peer to peer college student training
X Provide training for family members
X Include adults experiencing job loss and time period out of work X College faculty training (higher education)
X Work place problems – may be the 1st place where problems are noticed. Include training supervisors, etc.
X Single, middle‐age me
X Need to provide targeted resources to returning serve members who are at high risk for suicide. Their families are also at high risk for violence, depression and suicide.
Wall Graphic
X Job loss
Provide unemployed with resources, information
Mandate provision of information
Parent’s impact on entire family
X Foster parents
X Parents need resources, tools to help prevent suicide Older Adults Ages 60+
X Add priority populations. Health or family health of suicide identification or attempts. I Santa Clara County Suicide Prevention Strategic Plan June 2010 Revised March 2011 Page 124 of 136
Additional idea – fundraisers such as a wing into life golf tournament for schools, community organizations, or contract agencies.
X Make homebound services/disabled a priority!! For outreach and address isolation issue.
X I like the idea of a mobile unit(s). I think advertising in all forms of media (TV, radio, newspapers, magazines, etc.) is necessary.
a) Additional Comments
The “forgotten” population. I’ve heard it said that they are underserved by the new PEI Plan.
b) Wall Graphic
X Community ownership of plan is important!
X Connect with people
X Reality affects society, people
X Stigma of seeking help, change this!
X Separate prevention and intervention
Medicine side effects impact suicide risk
Santa Clara County Suicide Prevention Strategic Plan June 2010 Revised March 2011 Page 125 of 136
Attachment 5. Palo Alto Unified School District Suicide Prevention and Mental Health Promotion Policy
Students BP 5141.52
SUICIDE PREVENTION AND RELATED MENTAL HEALTH PROMOTION
The Board of Education recognizes that suicide is a major cause of death among youth and should be taken seriously. In order to attempt to reduce suicidal behavior and its impact on students and families, the Superintendent or designee shall develop preventive strategies and intervention procedures.
The Superintendent or designee shall involve school health professionals, school counselors, administrators, other staff, parents/guardians, students, local health agencies and professionals, and community organizations in planning, implementing, and evaluating the district’s strategies for suicide prevention and intervention.
Prevention and Instruction
Suicide prevention strategies shall include, but not be limited to, efforts to promote a positive school climate that enhances students’ feelings of connectedness with the school and is characterized by caring staff and harmonious interrelationships among students.
The district’s instructional and student support program shall promote the healthy mental, emotional, and social development of students including, but not limited to, the development of problem-solving skills, coping skills, and resilience.
The Superintendent or designee may offer parents/guardians education or information which describes the severity of the youth suicide problem, the district’s suicide prevention efforts, risk factors and warning signs of suicide, basic steps for helping suicidal youth, reducing the stigma of mental illness, and/or school and community resources that can help youth in crisis.
Staff Development
Suicide prevention training for staff shall be designed to help staff identify and find help for students at risk of suicide. The training shall be offered under the direction of district staff and/or in cooperation with one or more community mental health agencies and may include information on:
1. Research identifying risk factors, such as previous suicide attempt(s), history of depression or mental illness, substance use problems, family history of suicide or violence, feelings of isolation, interpersonal conflicts, a recent severe stressor or loss, family instability, and other factors.
2. Warning signs that may indicate suicidal intentions, including changes in students’ appearance, personality, or behavior.
3. Research-based instructional strategies for teaching the suicide prevention curriculum and promoting mental and emotional health.
4. School and community resources and services for students and families in crisis and ways to access them.
5. District procedures for intervening when a student attempts, threatens, or discloses the desire to die by suicide.
BP 5141.52
Santa Clara County Suicide Prevention Strategic Plan June 2010 Revised March 2011 Page 126 of 136
SUICIDE PREVENTION AND RELATED MENTAL HEALTH PROMOTION (continued) Intervention
Whenever a staff member suspects or has knowledge of a student’s suicidal intentions, he/she shall promptly notify the principal, another school administrator, psychologist, or school counselor. The principal, another school administrator, psychologist, or counselor shall then notify the student’s parents/guardians as soon as possible and may refer the student to mental health resources in the school or community.
Students shall be encouraged through the education program and in school activities to notify a teacher, principal, another school administrator, counselor, or other adult when they are experiencing thoughts of suicide or when they suspect or have knowledge of another student’s suicidal intentions.
The Superintendent or designee shall establish crisis intervention procedures to ensure student safety and appropriate communications in the event that a suicide occurs or an attempt is made by a member of the student body or staff on campus or at a school-sponsored activity.
Also see:
cf. 4131 – Staff Development
cf. 5022 – Student and Family Privacy Rights
cf. 5125 – Student Records
cf. 5030 - Student Wellness
cf. 5141 – Health Care and Emergencies
cf. 5137 – Positive School Climate
cf. 5143 – Nondiscrimination/Harassment
cf. 6142.8 - Comprehensive Health Education
cf. 6164.2 – Guidance/Counseling Services
Policy PALO ALTO UNIFIED SCHOOL DISTRICT
adopted: June 1, 2010 Palo Alto, California
-
Santa Clara County Suicide Prevention Strategic Plan June 2010 Revised March 2011 Page 127 of 136
Students AR 5141.52
SUICIDE PREVENTION AND RELATED MENTAL HEALTH PROMOTION
Prevention and Instruction
The District’s suicide prevention curriculum shall be designed to help students to:
1. Identify and analyze signs of depression and self-destructive behaviors and understand how feelings of depression, loss, isolation, inadequacy, and anxiety can lead to thoughts of suicide.
2. Identify alternatives to suicide and develop coping and resiliency skills.
3. Learn to share feelings and get help when friends are showing signs of suicidal intent.
4. Identify community crisis intervention resources where help is available and recognize that there is no stigma associated with seeking mental health, substance abuse, gender identity, or other support services.
Staff Development
1. Annual in-service suicide prevention training will be conducted in order for the district staff to learn to recognize the warning signs of suicidal crisis, to understand how to help suicidal youths, and to identify community resources. All staff will learn to identify potentially suicidal students, to take preventative precautions, and to report suicide threats to the appropriate authorities. Training will be offered under the direction of trained district counselors/psychologists.
2. Staff shall promptly report suicidal threats or statements to the principal or to a trained district counselor/psychologist, who shall promptly report threats or statements to the student’s parents/guardians and take appropriate action until the parent or guardian arrives.
Intervention
Immediate Intervention for a Suicide Threat or Attempt
When a suicide attempt or threat is reported, the principal or designee shall:
1. Ensure the student’s physical safety by one of the following, as appropriate:
a. Securing immediate medical treatment if a suicide attempt has occurred. b. Securing law enforcement and/or other emergency assistance if a suicidal act is being actively threatened.
c. Keeping the student under continuous adult supervision until the parent/guardian and/or appropriate support agent or agency can be contacted and has the opportunity to intervene.
THE STUDENT MUST NOT BE LEFT ALONE.
Santa Clara County Suicide Prevention Strategic Plan June 2010 Revised March 2011 Page 128 of 136
AR 5141.52
SUICIDE PREVENTION AND RELATED MENTAL HEALTH PROMOTION (continued)
2. Designate specific individuals to be promptly contacted, including the school counselor, psychologist, nurse, superintendent, and/or the student’s parent/guardian, and as necessary, local law enforcement or mental health agencies.
3. Document the incident in writing as soon as feasible.
4. Follow up with the parent/guardian and student in a timely manner to provide referrals to appropriate services as needed.
5. Provide access to counselors or other appropriate personnel to listen to and support students and staff who are directly or indirectly involved with the incident at the school.
6. Provide an opportunity for all who respond to the incident to debrief, evaluate the effectiveness of the strategies used, and make recommendations for future actions.
7. Document the steps taken in the student’s record.
8. Develop an effective plan for reintegration of the student into school following the crisis.
Intervention after a Death Suggested to be Suicide
When a tragedy occurs and a student dies, the principal or designee shall:
1. Contact the Superintendent. District Office staff will contact other schools and remind them to identify and provide counseling to any student who might have known or been connected in any way with the student who died.
2. Call an emergency staff meeting to relay known information and formulate appropriate procedures for supporting students, staff, and parents. The death should not be called a suicide. This is a legal determination that can only be made by the coroner’s office. It should be referred to as a death or a tragic death.
3. Talk with students who were in class with the student by going to that classroom.
4. Contact other students who might know the student in direct, one-to-one conversations.
5. Provide counseling support to students. Contact additional psychologists/counselors to increase the available support. Have a place available for students to go to (Support Room) and walk around campus to be available for any student needing support. Counselors should follow the student’s schedule and be available to assist the students and teachers in those classes. Students must be allowed to grieve, but there should be no large group gatherings such as an assembly. Students should not be allowed to congregate in groups without adult supervision. Identify any students who might be at risk and call them in to talk.
6. Contact the family to express condolences and to let them know what the school is doing. Ask when the family would like the student’s personal items returned to them. The student’s locker should be cleaned out and contents returned to the parents at an appropriate time.
Santa Clara County Suicide Prevention Strategic Plan June 2010 Revised March 2011 Page 129 of 136
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SUICIDE PREVENTION AND RELATED MENTAL HEALTH PROMOTION (continued)
7. Designate a spokesperson who will respond to questions and inquiries from the media and work with the media to assure responsible reporting (see American Foundation for Suicide Prevention guidelines).
8. School will be conducted as usual to the greatest extent possible. In no case should school be canceled.
9. Prepare a note to send home to parents indicating that a tragic death has occurred and that post intervention procedures and counseling has begun.
10. Schedule a parent meeting as soon as possible to help parents deal with the issue and to advise them how to help students.
Also see:
cf. 4131 – Staff Development
cf. 5022 – Student and Family Privacy Rights
cf. 5125 – Student Records
cf. 5030 - Student Wellness
cf. 5141 – Health Care and Emergencies
cf. 5137 – Positive School Climate
cf. 5143 – Nondiscrimination/Harassment
cf. 6142.8 - Comprehensive Health Education
cf. 6164.2 – Guidance/Counseling Services
PALO ALTO UNIFIED SCHOOL DISTRICT
Approved: June 1, 2010 Palo Alto, California
Santa Clara County Suicide Prevention Strategic Plan June 2010 Revised March 2011 Page 130 of 136
Santa Clara County Suicide Prevention Strategic Plan June 2010 Revised March 2011 Page 131 of 136
Attachment 6. References
1 Behavioral Risk Factor Survey, Santa Clara County 2004 Chartbook, Santa Clara County Public Health Department, 2004
2 California Department of Health: Epic Data
3 http://www.sprc.org/grantees/statetribe/2010/7B%20Inspire%20USA%20handout.pdf 4 Ibid
5 Center for Health Statistics—Vital Statistics Query System. http://www.applications.dhs.ca.gov/vsq/screen4a.asp?cnty_cd=43&YEAR_DATA=2007&Criteria =1&Res_occ=Residence&Birth_Death=Death&stats=2&cod_cd=424 Retrieved 3/4/10. 6 California Department of Public Health, County Health Status Profiles 2009, retrieved 3/9/10 7 Number is based on the above‐established rate.
8 Center for Health Statistics—Vital Statistics Query System. http://www.applications.dhs.ca.gov/vsq/screen4a.asp?cnty_cd=43&YEAR_DATA=2007&Criteria =1&Res_occ=Residence&Birth_Death=Death&stats=2&cod_cd=424 Retrieved 3/4/10. 9 Ibid
10 California Department of Public Health, Center for Health Statistics, Vital Statistics Query System. http://www.applications.dhs.ca.gov/vsq/default.asp.
Retrieved 3/3/10 through kidsdata.org
11 The Trust about Suicide: Real Stories of Depression in College. http://www.afsp.org/files/College_Film//factsheets.pdf Retrieved 3/4/10 12 Mental Health America Suicide Fact Sheet. http://www.mentalhealthamerica.net/go/suicide Retrieved 3/4/10
13 Ray Hodgson, Tina Abbasi, Johanna Clarkson. 1996. Effective mental health promotion.
Health Education Journal, 55, 55‐74
14 National Strategy for Suicide Prevention, US Dept. of Health and Human Services, 2001, p 41 15 Sanford C and Hedegaard H (editors). Deaths from Violence: A Look at 17 States ‐‐ Data from the National Violent Death Reporting System. December 2008. 16 Youth Suicide Fact Sheet. www.suicidology.org. Retrieved 4/22/10. 17 CDC. Suicide among children, adolescents and young adults—United States, 1980‐1992.
MMWR Morbidity Mortality Weekly Report 1995; 44(15):289‐91 18 California EpiCenter database 19 Behavioral Risk Factor Survey, Santa Clara County 2004 Chartbook, Santa Clara County Public Health Department, 2004
20 Santa Clara County Youth Suicide Rate 2005‐2007. California Department of Public Health, Center for Health Statistics, Vital Statistics Query System. http://www.applications.dhs.ca.gov/vsq/default.asp. Retrieved 3/3/10 through kidsdata.org 21 Youth Suicide Fact Sheet. www.suicidology.org. Retrieved 4/22/10. 22 California EpiCenter database 23 American Foundation for Suicide Prevention,
http://www.afsp.org/index.cfm?fuseaction=home.viewPage&page_id=E2464DF6‐0397‐BD56‐ A8E232923B04ED5C Retrieved 3/4/10
Santa Clara County Suicide Prevention Strategic Plan June 2010 Revised March 2011 Page 132 of 136
24 Potter, L., Silverman, M., Connorton, E., & Posner, M. (2001). Promoting mental health and preventing suicide in college and university settings. Suicide Prevention Resource Center.
Retrieved October 15, 2007, from www.sprc.org/library/college_sp_whitepaper.pdf. 25 Benton, S. A., Robertson, J. M., Wen‐Chih Tseng, Newton, F. B., & Benton, S.L. (2003).
Changes in counseling center client problems across 13 years. Professional Psychology:
Research and Practice, 34(1), 66–72.
26 Picture This: Depression and Suicide Prevention. Prepared for the Substance Abuse and Mental Health Services Administration (SAMHSA) by the Entertainment Industries Council, Inc. http://www.eiconline.org/resources/publications/z_picturethis/Disorder.pdf. Retrieved 4/14/10
27 Santa Clara County Suicide Prevention Advisory Committee Basic National Data, presented by Victor Ojakian on January 13, 2010. http://www.sccmhd.org/SCC/docs/Mental Health Services (DEP)/attachments/National_State_Data_on_Suicide_slides_Mtg_1_13_2010.pdf. Retrieved 4/23/10.
28 American Association of Suicidology: Suicide and the Economy. Available at http://www.suicidology.org/web/guest/current‐research. Accessed May 19, 2010. 29 California EpiCenter database 30 Ibid
31 The National Alliance on Mental Illness. Communities: Major Depression. Available at:
http://www.nami.org//Template.cfm?Section=major_depression& template=/Forums/TopicDisplay.cfm&ForumID=1&ForumActiveFlag=Y&TopicActiveFlag=Y.
Accessed August 13, 2007.
32 Picture This: Depression and Suicide Prevention. Prepared for the Substance Abuse and Mental Health Services Administration (SAMHSA) by the Entertainment Industries Council, Inc. http://www.eiconline.org/resources/publications/z_picturethis/Disorder.pdf. Retrieved 4/14/10
33 Kulkin, H., E. Chauvin, & et al. (2000). Suicide among gay and lesbian adolescents and young adults: a review of the literature. Journal of Homosexuality, 40(1), 1‐29. 34 Remafedi, G., J. A. Farrow, et al. (1991). Risk factors for attempted suicide in gay and bisexual youth. Pediatrics, 87(6), 869‐875.
35 Eisenberg, M. E., & Resnick, M.D. (2006). Suicidality among gay, lesbian and bisexual youth:
The role of protective factors. Journal of Adolescent Health, 39(5), 662‐668. 36 Kessler, R., Borges, G., & Walters, E. (1999) Prevalence of and risk factors for lifetime suicide attempts in the national comorbidity survey. Archives of General Psychiatry, 56, 617‐626 37 The Archives of Pediatric and Adolescent Medicine (May 1999) 38 Ibid
39 Data Summary Sheet on Suicide Deaths and Non‐Fatal Self‐Inflicted Injuries. California Department of Mental Health, Office of Suicide Prevention. (2007). 40 American Foundation for Suicide Prevention. http://www.afsp.org/index.cfm?fuseaction=home.viewpage&page_id=04ECB949‐C3D9‐5FFA‐ DA9C65C381BAAEC0, retrieved 6/26/10
41 Court addresses causes of juvenile delinquency, San Jose Mercury News, November 23, 2002
Santa Clara County Suicide Prevention Strategic Plan June 2010 Revised March 2011 Page 133 of 136
42 Huskey & Associates in association with National Council on Crime and Delinquency, Profile of In‐Custody Minors in Santa Clara County, CA, Santa Clara County Probation Department, Preliminary Findings, July 17, 2008
43 Huskey & Associates in association with National Council on Crime and Delinquency, Profile of Out of Custody Minors, Santa Clara County Probation Department, Preliminary Findings, September 2, 2008
44 Data provided by the Santa Clara County Department of Probation, 4/15/10 45 Office of Justice Programs, Bureau of Justice Statistics. Suicide and Homicide in State Prisons and Local Jails, Christopher J. Mumola, August 21, 2005, NCJ 210036. http://bjs.ojp.usdoj.gov/index.cfm?ty=pbdetail&iid=1126 46 Ibid
47 Data provided by the Santa Clara County Department of Correction, 4/5/10 48 Ibid
49 New Navy Program Encourages Sailors to "ACT" to Prevent Suicide. Navy.mil (Official Website of the U.S. Navy) Story Number: NNS061203‐09. Release Date: 12/4/2006 9:01:00 AM.
Retrieved 4/22/10 50 Charles W. Hoge, M.D., et. al, Combat Duty in Iraq and Afghanistan, Mental Health Problems, and Barriers to Care, The New England Journal of Medicine, July 1, 2004, Vol. 351, No 1 51 Kaplan, M.S., Huguet, N., McFarland, B.H., & Newsom, J.T. (2007), Suicide among male veterans: a prospective population‐based study, Journal of Epidemiology and Community Health, 61(7), 619‐24.
52 Eli Clifton, U.S.: Suicide Rate Surged Among Veterans, Washington, Jan 13, 2010 53 Ibid 54 Mark S. Kaplan, DrPH, Bentson H. McFarland, MD, PhD, and Nathalie Huguet, PhD, Firearm Suicide Among Veterans in the General Population: Findings From the National Violent Death Reporting System, The Journal of TRAUMA® Injury, Infection, and Critical Car, Volume 67, Number 3, September 2009 55 American Fact Finder. TM‐P044. Percent of Civilian Persons 18 Years and Over Who Are Veterans: 2000, Universe: Civilian population 18 years and over, Data Set: Census 2000, SF 3 56 Parent, Richard 2004. "Aspects of Police Use of Deadly Force In North America ‐ The Phenomenon of Victim‐Precipitated Homicide," Ph.D. thesis, Simon Fraser University 57 USA Today. Suicide rate jolt police culture. 2/8/2007 58 Selzer, M. L., & Payne, C. E. (1992). Automobile accidents, suicide, and unconscious motivation. American Journal of Psychiatry, 119, p 239
59 Dennis L. Peck, Kenneth Warner (Summer, 1995). Accident or suicide? "Single‐vehicle car accidents and the intent hypothesis."
60 Murray, D.; de Leo, D. (Sep 2007). "Suicidal behavior by motor vehicle collision." Traffic Injury Prevention 8 (3): 244–7. doi: 10.1080/15389580701329351. PMID 17710713 61 http://www.menstuff.org/issues/byissue/unintentional‐suicide.html. Retrieved 4/21/10. 62 Scott Poland, District Administration, Solutions for School District Management, “Preventing Cluster Suicides,” October 2009
63 Brent DA, Moritz G, Bridge J, Perper J, Canobbio R (May 1996). "Long‐term impact of exposure to suicide: a three‐year controlled follow‐up". Journal of the American Academy of
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Child and Adolescent Psychiatry 35 (5): 646–53. doi: 10.1097/00004583‐199605000‐00020.
PMID 8935212
64 Phillips DP, Carstensen LL (September 1986). "Clustering of teenage suicides after television news stories about suicide." New England Journal of Medicine. 315 (11): 685–9. PMID 3748072. 65 Picture This: Depression and Suicide Prevention. Prepared for the Substance Abuse and Mental Health Services Administration (SAMHSA) by the Entertainment Industries Council, Inc. http://www.eiconline.org/resources/publications/z_picturethis/Disorder.pdf. Retrieved 4/14/10
66 American Association of Suicidology, Scott Poland, Prevention Director, “Preventing Cluster Suicides,” District Administration Solutions for School District Management, October 2009 67 American Roulette: Murder‐Suicide in the United States. Violence Policy Center. 68 Picture This: Depression and Suicide Prevention. Prepared for the Substance Abuse and Mental Health Services Administration (SAMHSA) by the Entertainment Industries Council, Inc. (EIC),under subcontract to ENCORE Management Corporation, contract number 280‐02‐0701, with SAMHSA, U.S. Department of Health and Human Services (HHS).Anne Mathews‐Younes, Ed.D., Government Project Officer.
http://www.eiconline.org/resources/publications/z_picturethis/Disorder.pdf. Retrieved 4/14/10
69 Robins, E. (1981).The final months: A study of the lives of 134 persons. NY: Oxford University Press.
70 Barraclough, B., & Hughes, J. (1987). Suicide: Clinical and epidemiological studies. London:
Croom Helm.
71 Conwell,Y., Duberstein, P.R., Cox, C., Herrmann, J.H., Forbes, N.T., and Caine, E.D. (1996).
Relationships of age and axis I diagnoses in victims of completed suicide: a psychological autopsy study. American Journal of Psychiatry, 153, 1001–1008. 72 Brent, D.A., Perper, J.A., Moritz, G., Allman, C., Friend, A., Roth, C., & et al. (1993). Psychiatric risk factors for adolescent suicide: a case‐control study. Journal of the American Academy of Child and Adolescent Psychiatry, 32 (3), 521–529.
73 Shaffer, D., Gould, M.S., Fisher, P.,Trautman, Ph., Moreau, D., KJeinman, M., & et al. (1996).
Psychiatric diagnosis in child and adolescent suicide. Archives of General Psychiatry, 53 (4), 339–348.
74 Potter, L., Silverman, M., Connorton, E., & Posner, M. (2001). Promoting mental health and preventing suicide in college and university settings. Suicide Prevention Resource Center.
Retrieved October 15, 2007, from www.sprc.org/library/college_sp_whitepaper.pdf. 75 Kidsdata.org, a program of the Lucile Packard Foundation for Children’s Health 76 Kids in Common 2007 Santa Clara County Children’s Report 77 Santa Clara County Department of Public Health and WestEd. California Healthy Kids Survey 2005‐2006. 78 Picture This: Depression and Suicide Prevention. Prepared for the Substance Abuse and Mental Health Services Administration (SAMHSA) by the Entertainment Industries Council, Inc. http://www.eiconline.org/resources/publications/z_picturethis/Disorder.pdf. Retrieved 4/14/10
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79 American Foundation for Suicide Prevention,
http://www.afsp.org/index.cfm?fuseaction=home.viewPage&page_id=E2464DF6‐0397‐BD56‐ A8E232923B04ED5C. Retrieved 3/4/10
80 Picture This: Depression and Suicide Prevention. Prepared for the Substance Abuse and Mental Health Services Administration (SAMHSA) by the Entertainment Industries Council, Inc. http://www.eiconline.org/resources/publications/z_picturethis/Disorder.pdf. Retrieved 4/14/10
81 Regier, D.A., Farmer, M.E., Rae, D.S., et al. (1993). One‐month prevalence of mental disorders in the United States and sociodemographic characteristics: The epidemiologic catchment area study. Acta Psychiatria Scandinavica, 88, 35‐47. 82 Conwell Y, Brent D. Suicide and aging. I: patterns of psychiatric diagnosis. International Psychogeriatrics, 1995; 7(2): 149‐64.
83 Conwell Y. Suicide in later life: a review and recommendations for prevention. Suicide and Life Threatening Behavior, 2001; 31(Suppl): 32‐47.
84 Health Trust, Health Aging Initiative. http://www.healthtrust.org/initiatives/aging/facts.php.
Retrieved 4/23/10.
85 Santa Clara County Public Health Department, Epidemiology and Data Management, 2005‐ 2006 Behavior Risk Factor Survey Santa Clara County Chartbook; 2004 Adult Health Status Report. http://sccphd.org/portal/
86 Substance Abuse and Mental Health Services Administration, Office of Applied Studies. (October 11, 2007). The NSDUH Report: Depression among Adults Employed Full‐Time, by Occupational Category. Rockville, MD.
87 “Veterans Stress Cases Up Sharply,” USA Today, Oct. 18, 2007, http://www.usatoday.com/news/washington/2007‐10‐18‐veterans‐stress_N.htm 88 Ibid
89 Defense Medical Surveillance System, Post Deployment Health Self‐Assessment of Service Members Who Had Served in Iraq, Behavioral Health Services for Veterans and their Families, February, 2008, p.1. 90 Leonard, Power Point Presentation, “Welcome to the Veteran Services Town Hall Meeting.” 91 All about Depression, Suicide and Depression.
http://www.allaboutdepression.com/gen_04.html Retrieved 3/4/10 92 Picture This: Depression and Suicide Prevention. Prepared for the Substance Abuse and Mental Health Services Administration (SAMHSA) by the Entertainment Industries Council, Inc. (EIC),under subcontract to ENCORE Management Corporation, contract number 280‐02‐0701, with SAMHSA, U.S. Department of Health and Human Services (HHS).Anne Mathews‐Younes, Ed.D., Government Project Officer.
http://www.eiconline.org/resources/publications/z_picturethis/Disorder.pdf. Retrieved 4/14/10
93 The Trust about Suicide: Real Stories of Depression in College. http://www.afsp.org/files/College_Film//factsheets.pdf Retrieved 3/4/10 94 Santa Clara County Public Health Department, Behavioral Risk Factor Survey, 2005‐2006 95 Oxford Journal of Medicine: An International Journal of Medicine, Volume 99, Number 1, Pp. 57‐61
Santa Clara County Suicide Prevention Strategic Plan June 2010 Revised March 2011 Page 136 of 136
96 Hufford M. R., Alcohol and suicidal behavior. Clinical Psychology Review 2001; 21:797–811. 97 Natalie Staats Reiss, Ph.D., and Mark Dombeck, Ph.D. Factors Contributing To Suicide Risk, Updated: Oct 24th 2007
98 Protective Factor List Published by the U.S. Public Health Service 1999 99 Centers for Disease Control and Prevention, Suicide Prevention Scientific Information:
Prevention Strategies.” http://www.cdc.gov/ncipc/dvp/Suicide/Suicide‐prvt‐strat.htm.
Accessed 5/12/10.
100 Santa Clara County Mental Health Department 2009 data 101 http://www.sprc.org/grantees/statetribe/2010/7B%20Inspire%20USA%20handout.pdf 102 Clebsch, W. A., Jaeckle, C. R. 1983 103 Community for a Lifetime, 2005 104 Developed in a collaborative effort among American Foundation for Suicide Prevention (AFSP), the Annenberg Public Policy Center, the National Institute of Mental Health, the Office of the Surgeon General, the Centers for Disease Control and Prevention, the Substance Abuse and Mental Health Services Administration, the American Association of Suicidology, the World Health Organization and several other agencies.
105 Santa Clara County Mental Health Department 2009 data RESOLUTION NO. _____
A RESOLUTION OF THE CITY OF SANTA CLARA, CALIFORNIA IN
SUPPORT OF THE SANTA CLARA COUNTY SUICIDE PREVENTION
STRATEGIC PLAN (THE PLAN) AND APPROVAL OF THE CITY OF
SANTA CLARA SUICIDE PREVENTION POLICY AND MENTAL
HEALTH PROMOTION
BE IT ORDAINED BY THE CITY OF SANTA CLARA AS FOLLOWS:
WHEREAS, the Surgeon General, Dr. David Satcher, issued a landmark report in 1999 titled, "The Surgeon General’s Call to Action to Prevent Suicide," which stated that suicide in the United States is a serious public health issue and the most preventable form of death; and,
WHEREAS, the National Strategy for Suicide Prevention: Goals and Objectives for Action promotes "increasing the proportion of family, youth and community service providers and organizations with evidence-based suicide prevention programs"; and, WHEREAS, from 2018 – 2021, Santa Clara County has lost an average of 158 individuals per year to suicide, and a far greater number of County residents attempt suicide or express suicidal thoughts, making this a significant public health issue locally; and,
WHEREAS, the City of Santa Clara supports the Santa Clara County Suicide Prevention Strategic Plan (The Plan), adopted by the Santa Clara County Board of Supervisors in August 2010, and revised in March 2011, with goals to (1) reduce the number of deaths by suicide, (2) increase awareness and understanding of suicidal deaths and what to do, (3) improve data collection, monitoring, and follow up, and (4) have residents respond to a person in need; and,
WHEREAS, the Santa Clara City Council and City Administration understand the concern that suicide poses to their residents and employees/employers. Within that framework, the City shall adopt suicide prevention strategies and intervention procedures. These policies and procedures will be compatible with The Plan. This policy promotes planning, implementing, and evaluating strategies to identify and prevent loss of life, encourages mental health care, takes steps to remove the stigma around seeking mental health treatment and provides support mechanisms to individuals impacted by suicide.
NOW THEREFORE, BE IT FURTHER ORDAINED BY THE CITY OF SANTA CLARA AS FOLLOWS:
SECTION 1: That a new Section ____ is added to the Council Policy Manual titled “Suicide Prevention Policy and Mental Health Promotion” and to read as follows:
The Santa Clara City Council and City Administration understand the concern that suicide poses to their residents and employees/employers. Within that framework, the City’s Office of Emergency Services (OES) shall adopt a suicide prevention policy . This policy and accompanying procedures will be compatible with the Santa Clara County Suicide Prevention Strategic Plan that was adopted by the Santa Clara County Board of Supervisors in August 2010, and revised in March 2011. To meet these goals, mental health care shall be promoted and supported for community members and employees/employers in need.
This policy shall be consistent with the current strategies and best practices as designated by the Suicide Prevention Resource Center, a national agency promoting the National Suicide Prevention Plan, and the California Suicide Prevention Plan.
This policy promotes planning, implementing, and evaluating strategies to identify and prevent loss of life, encourages mental health care, takes steps to remove the stigma around seeking mental health treatment and provides support mechanisms to individuals impacted by suicide.
Departments throughout the City have inventoried existing community and employee resources and contributed to a preliminary plan to increase training in identifying those at risk and how to report suicide threats to the appropriate professionals. A strong and effective educational program to promote the healthy mental, emotional, and social development of residents and employees/employers including, but not limited to, understanding of problem-solving skills, coping skills, and resilience.
Additionally, an easily accessible list of mental health and suicide prevention resources will be established and maintained.
This policy may also provide for active collaboration with the Santa Clara Unified School District and other local and regional authorities, including Santa Clara County government. This policy may include parent education, youth outreach, mental health support of students, and grief support amongst other actions.
The City’s OES manager or his/her designee shall explore how this policy relates to the City’s Emergency Operations Plan.
SECTION 2: Ordinances Repealed. With exception of the provisions protected by the savings clause, all ordinances (or parts of ordinances) in conflict with or inconsistent with this ordinance are hereby repealed.
SECTION 3: Savings clause. The changes provided for in this ordinance shall not affect any offense or act committed or done or any penalty or forfeiture incurred or any right established or accruing before the effective date of this ordinance; nor shall it affect any prosecution, suit or proceeding pending or any judgment rendered prior to the effective date of this ordinance. All fee schedules shall remain in force until superseded by the fee schedules adopted by the City Council.
SECTION 4: Effective date. This ordinance shall take effect thirty (30) days after its final adoption; however, prior to its final adoption it shall be published in accordance with the requirements of Section 808 and 812 of “The Charter of the City of Santa Clara, California.”
PASSED FOR THE PURPOSE OF PUBLICATION this XX day of XXXXXX, 2022, by the following vote:
AYES: COUNCILORS:
NOES: COUNCILORS:
ABSENT: COUNCILORS:
ABSTAINED: COUNCILORS:
ATTEST: ___________________________
NORA PIMENTEL, MMC
ASSISTANT CITY CLERK
CITY OF SANTA CLARA
Attachments incorporated by reference:
1. Santa Clara County Suicide Prevention Strategic Plan (The Plan) City of Santa Clara
Agenda Report
1500 Warburton Avenue
Santa Clara, CA 95050
santaclaraca.gov
@SantaClaraCity
22-1421 Agenda Date: 12/6/2022
REPORT TO COUNCIL
SUBJECT
Action on a Request for a Special Permit to Allow a Christmas Tree Sales Lot at 3705 El Camino Real from December 6, 2022 through December 24, 2022
COUNCIL PILLAR
Promote and Enhance Economic, Housing and Transportation Development
BACKGROUND
The applicant, Maranda Jantz on behalf of The Save Mart Companies, is requesting a Special Permit pursuant to Zoning Code Section 18.60.030 to allow for a Christmas tree sale in the parking lot of the Lucky Supermarket located at 3705 El Camino Real. The property is currently zoned CC - Community Commercial, which allows for retail activity as a permitted use, but does not specifically allow outdoor sales uses such as a Christmas tree sales lot. Zoning Code Section 18.60.030 requires issuance of a Special Permit by the City Council in non-industrial zones for any use not otherwise regulated within the Zoning Code.
The shopping center property is on the north side of El Camino Real and adjacent to Lawrence Expressway along its eastern edge. Surrounding land uses include commercial uses to the east, west and south along El Camino Real and an apartment complex to the north.
DISCUSSION
The Save Mart Companies owns and operates Lucky stores in Northern California and has ordered 205 trees to sell to customers at this location for a period of four weeks. The Christmas tree sales will include the installation of an outdoor chain link fence and will displace 16 parking spaces. The Christmas tree lot sales will occur on December 6, 2022 through December 24, 2022. Hours of operations shall be consistent with store hours from 6:00 a.m. to 1:00 a.m. The Christmas tree lot will not have additional lighting or generators on-site. The proposed Permit findings of consistency with the Zoning Code and conditions of operation are listed below. The draft permit conditions address allowable hours of operation, additional permit requirements, cleaning of the lot, and nuisance avoidance:
1. Christmas tree lot sales shall be from December 6, 2022 through December 24, 2022;
2. Christmas tree lot sales are restricted to the store’s hours from 6:00 a.m. to 1:00 a.m.;
3. The applicant shall comply with all Zoning Ordinance regulations regarding temporary and permanent structures and obtain all necessary Building and/or Fire Department permits;
4. The applicant shall obtain an amplified music permit and shall comply with City Code Section
9.10.040, noise and sound regulation, if applicable;
5. The applicant shall comply with Fire Department directives and requirements;
6. There shall be no “searchlight” beams, streamers, or roof-mounted balloons during the term of this Special Permit;
City of Santa Clara Page 1 of 2 Printed on 12/2/2022
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22-1421 Agenda Date: 12/6/2022
7. This permit is subject to revocation by the Planning Division for violation of any of its conditions of approval, and;
8. At the conclusion of the event, the parking lot shall be cleaned and returned to its prior condition.
The proposed temporary use, with limited duration is not anticipated to adversely impact the surrounding land uses in that the event will occur for a period of four weeks and will be subject to conditions which mitigate any potential negative impact. The Special Permit is subject to revocation should problems arise.
ENVIRONMENTAL REVIEW
The action being considered is exempt from the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15304(e) (Class 4 - Minor Alterations to Land) as it consists of the minor temporary use of land having negligible or no permanent effects on the environment; the sale of Christmas trees is specifically listed as a permissible temporary use under the Class 4 CEQA exemption.
FISCAL IMPACT
There is no cost to the City other than administrative staff time and expense. The applicant paid for the necessary permit fees.
COORDINATION
This report has been coordinated with the City Attorney’s Office
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email [email protected] <mailto:[email protected]> or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Approve the Request of a Special Permit to allow a Christmas Tree Sales Lot from December 6, 2022 through December 24, 2022 at 3705 El Camino Real, subject to conditions.
Reviewed by: Andrew Crabtree, Director of Community Development Approved by: Rajeev Batra, City Manager
ATTACHMENTS
1. Site Plan
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/'19/2007) Devan Lisle - SM#773.pdf
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City of Santa Clara
Agenda Report
1500 Warburton Avenue
Santa Clara, CA 95050
santaclaraca.gov
@SantaClaraCity
22-1434 Agenda Date: 12/6/2022
REPORT TO COUNCIL
SUBJECT
Action on Installation of Electric Vehicle Charging Stations on City-owned Land and Public Right-ofWay
COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure and Sustainability
BACKGROUND
On April 9, 2019, (RTC 19-221) Council acted on a Charging Station and Premises Agreement with EVGO Services LLC and delegated authority to the City Manager to negotiate opportunities and approve agreements and related documents to install up to an additional 30 new EV charging stations in the public right-of-way throughout the rest of the City. EVGO did not end up installing charging stations.
On April 7, 2020, the City Council took action on the Agreement with National Car Charging LLC for EV Charging Installations. Since that action, Silicon Valley Power (SVP) has been adding charging stations on City-owned properties; City Hall, parks and other City owned facilities for public and fleet use. A total of 87 charger ports have been installed.
Recently the City received additional interest for charger installations on City property, specifically City owned parking lots.
DISCUSSION
There has been expressed interest by public EV charging network providers to install public EV charging stations on City-owned properties that meet specific traffic and size criteria. EV charging network providers are proposing to install, own and operate the EV chargers, absorbing the operation and maintenance burden while providing a revenue stream to the City, in return for use of City-owned properties. Access to EV charging at key locations in the City not only supports the City’s sustainability pillar through transportation electrification, but also provides EV charging access to residents, businesses, and visitors without expense to the City. EV charging could be an amenity that has the potential to drive traffic to restaurants and shopping venues, increasing sales tax revenue to the City.
This action would expand upon the existing authority to include City-owned or managed properties and facilities, on City-owned land, in addition to the public right-of-way throughout the City and up to 100 new EV charging stations.
All the providers would need to meet the City’s requirements and complete appropriate outreach for any such installations. Staff will also inform Council of any proposed installations.
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22-1434 Agenda Date: 12/6/2022
ENVIRONMENTAL REVIEW
The action being considered is exempt from the California Environmental Quality Act (“CEQA”) of the following section of Title 14 of the California Code of Regulations: (1) Section 15303 as the proposed action involves the licensing of land for the construction of limited numbers of new, small equipment and facilities on City-owned land and public right-of-way.
FISCAL IMPACT
No capital expenditures will result from entering into this agreement. There are no known negative economic impacts. EV charging network providers will permit, construct, and provide for any and all necessary structures and/or equipment needed to provide the EV chargers. This will go through the regular City permitting process and requirements. There is a potential for City revenue through land use/lease agreements.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email [email protected] <mailto:[email protected]> or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Authorize the City Manager to negotiate opportunities and approve agreements, leases, and all related documents to install up to 100 new EV charging stations at City-owned or managed properties/facilities, land, and public right-of-way.
Reviewed by: Manuel Pineda, Chief Electric Utility Officer Approved by: Rajeev Batra, City Manager
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City of Santa Clara
Agenda Report
1500 Warburton Avenue
Santa Clara, CA 95050
santaclaraca.gov
@SantaClaraCity
22-1481 Agenda Date: 12/6/2022
REPORT TO COUNCIL
SUBJECT
Action on a Resolution Approving the 2023 Civil Service Commission Calendar of Meetings, and Setting the Number and Start Time of Regular Meetings of the Civil Service Commission
COUNCIL PILLAR
Enhance Community Engagement and Transparency
BACKGROUND
City Charter Section 1003 states that each of the boards and commissions of the City shall hold regular meetings as required by City Code. City Code Section 2.120.030 states that each board or commission shall hold regular meetings at the times and on the days indicated by resolution of the City Council, which resolutions may be amended from time to time by further resolution of the Council.
DISCUSSION
At the November 14, 2022 Civil Service Commission meeting, the Commission recommended the proposed 2023 Schedule of Meetings, which includes twelve (12) regular meeting dates and seven (7) potential Board of Review hearing dates, that would commence after conclusion of the regular Civil Service Commission meeting, if necessary to hear an appeal. The start time for each Civil Service Commission meeting is recommended to remain at 7:00 p.m.
The new resolution for City Council approval establishes the 7:00 p.m. Civil Service Commission start time and twelve (12) regular meetings for the year (which may be cancelled at the discretion of the City Manager based upon best practices for agenda management) to be held on the second Monday of each month, beginning in January 2023.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(b)(5) in that it is a government organizational or administrative activity that will not result in direct or indirect changes in the environment.
FISCAL IMPACT
There is no fiscal impact other than administrative time and expense to set the meetings.
COORDINATION
This report has been coordinated with the City Attorney’s Office.
PUBLIC CONTACT
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22-1481 Agenda Date: 12/6/2022
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email [email protected] <mailto:[email protected]>, or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Adopt a Resolution approving the 2023 Civil Service Commission Calendar of Meetings, and setting the number and start time of regular Civil Service Commission meetings.
Reviewed by: Aracely Azevedo, Director, Human Resources Approved by: Rajeev Batra, City Manager
ATTACHMENTS
1. Civil Service Commission 2023 Meeting Dates
2. Resolution Approving the 2023 Civil Service Commission Calendar of Meetings, and Setting the Times and Days of Regular Meetings
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CIVIL SERVICE COMMISSION
ZOOM/CITY COUNCIL
CHAMBERS
1500 Warburton Avenue
Santa Clara, CA 95050
Schedule of Meetings
2023
Regular meetings are held on the second Monday of each month, beginning in January 2023 beginning at 7:00 p.m., in the City Council Chambers at via Zoom or 1500 Warburton Avenue, Santa Clara, in accordance with the following schedule.
Meeting Dates
January 9, 2023*
February 13, 2023*
March 13, 2023
April 10, 2023*
May 8, 2023
June 12, 2023*
July 10, 2023
August 14, 2023*
September 11, 2023
October 12, 2023*/**
November 13, 2023
December 11, 2023*
*The Board of Review will commence immediately following the conclusion of the CSC meeting, if necessary.
**Due to a holiday, this meeting will be held on a Thursday.
Resolution/Approving the 2023 Civil Service Commission Calendar Rev: 11/22/17
RESOLUTION NO. 22-
A RESOLUTION OF THE CITY OF SANTA CLARA,
CALIFORNIA APPROVING THE 2023 CIVIL SERVICE
COMMISSION CALENDAR OF MEETINGS, AND
SETTING THE NUMBER AND START TIME OF
REGULAR CIVIL SERVICE COMMISSION MEETINGS
BE IT RESOLVED BY THE CITY OF SANTA CLARA AS FOLLOWS:
WHEREAS, Section 2.120.030 of the Santa Clara City Code (“SCCC”) requires City boards and commissions to hold regular meetings at the times and on the days indicated by resolution of the Council;
WHEREAS, the Civil Service Commission, at its November 14, 2022, meeting recommended a regular meeting schedule for 2023, which proposes twelve (12) regular meetings and a state time of 7:00 p.m., as reflected on the attached Civil Service Commission 2023 Meeting Dates; and
WHEREAS, the Civil Service Commission also recommended reserving seven (7) potentialdates during the calendar year for Board of Review hearing dates, to be convened as needed, as reflected on the attached Civil Service Commission 2023 Meeting Dates.
NOW THEREFORE, BE IT FURTHER RESOLVED BY THE CITY OF SANTA CLARA AS FOLLOWS:
1. That the City of Santa Clara are hereby finds that the above Recitals are true and correct and by the reference makes them a part thereof.
2. That the City Council herby approves setting the Civil Service Commission regular meeting start time at 7:00 p.m., and establishes twelve regular (12) meetings for calendar year 2023, set on the second Monday of each month, beginning in January (as set forth on the attached Civil Service Commission 2023 Meeting Dates), which meetings may be cancelled at the discretion of the City Manager based upon best practices for agenda management.
Resolution/Approving the 2023 Civil Service Commission Calendar Rev: 11/22/17
That the City Council hereby approves the seven (7) potential Civil Service Commission meeting dates during the 2023, as listed in the attached Civil Service Commission 2023 Meeting Dates, for the Board of Review hearing dates, to be convened as needed, upon completion of the regularly scheduled Civil Service Commission meeting.
3. Effective date: This resolution shall be effective January 1, 2023.
I HEREBY CERTIFY THE FOREGOING TO BE A TRUE COPY OF A RESOLUTION PASSED
AND ADOPTED BY THE CITY OF SANTA CLARA, CALIFORNIA, AT A REGULAR MEETING THEREOF HELD ON THE DAY OF , 2022, BY THE FOLLOWING VOTE:
AYES: COUNCILORS:
NOES: COUNCILORS:
ABSENT: COUNCILORS:
ABSTAINED: COUNCILORS:
ATTEST:
NORA PIMENTEL, MMC
ASSISTANT CITY CLERK
CITY OF SANTA CLARA
Attachments incorporated by reference: Civil Service Commission 2023 Meeting Dates City of Santa Clara
Agenda Report
1500 Warburton Avenue
Santa Clara, CA 95050
santaclaraca.gov
@SantaClaraCity
22-1394 Agenda Date: 12/6/2022
REPORT TO STADIUM AUTHORITY BOARD
SUBJECT
Action on Stadium Authority Bills and Claims for the Month of October 2022
BOARD PILLARS
Enhance Community Engagement and Transparency
Ensure Compliance with Measure J and Manage Levi’s Stadium
BACKGROUND
Disbursements made by the Stadium Authority are based on invoices submitted for payment. Prior to payment, staff reviews all disbursement documents to ensure that they are in compliance with the goods or services provided.
The Bills and Claims listing represents the cash disbursements required of normal and usual operations during the period. Budget control is set by the Stadium Authority Board through the budget adoption process.
DISCUSSION
On March 27, 2019 the Stadium Authority Board directed staff to stop payment of any Stadium Authority invoices for services unless there is substantial documentation of services rendered, which must also be in compliance with State law and City Code. Since March 27, 2019, staff received direction to pay Stadium Authority invoices related to SBL sales and services, insurance, and utilities.
At the March 15, 2022 Stadium Authority Board meeting, the Board delegated authority to the Office of the Executive Director and Treasurer to approve budget amendments that move funds from the Legal Contingency to Shared Expenses after the review of adequate documentations for costs.
Subsequent to that direction, Stadium Authority staff met with Stadium Manager on April 12, 2022 to review documentation for shared expenses. Following meetings with the Stadium Manager, payments related to compensation that were reviewed and approved were included in the September monthly payment.
Effective August 31, 2022, the Stadium Authority and Stadium Manager agreed to the timely payment of Shared Stadium Expenses and other budgeted expenses in accordance with the Annual Stadium Authority Budget-except for buffet expenses invoiced pursuant to Section 4.6.1 of the Stadium Lease.
The Stadium Authority maintains the right to confirm and dispute submitted charges from the 2021-22 fiscal year and onward during a fiscal-year-end reconciliation/true-up, because of any concerns regarding improper allocation, calculation, lack of support, or failure to comply with the Parties’ contracts or California law, among other reasons. The Stadium Authority may raise such questions with respect to any charge at any time before a fiscal year-end reconciliation/true-up and the Stadium Manager must assess and respond to such questions in good faith.
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22-1394 Agenda Date: 12/6/2022
Expenses paid in October 2022 include:
· Payment totaling $186,658.10 to the City of Santa Clara for reimbursement of General and Administrative (G&A) City payroll costs (e.g.: Executive Director’s Office (City Manager’s Office), Counsel’s Office (City Attorney’s Office), and Treasurer’s Office (Finance Department)) · Payment totaling $5,385,381.00 to Stadium Funding Trust for Term A Loan Interest Payment · Payments totaling $3,187,360.05 to Forty Niners Stadium Management Co, LLC for the following:
o $618,431.00 for April - September 2022 Stadium Manager Expenses - NonCompensation for Security o $665,281.00 for April - September 2022 Stadium Manager Expenses - NonCompensation for Stadium Ops o $383,545.00 for April - September 2022 Stadium Manager Expenses - NonCompensation for Engineering o $105,674.00 for April - September 2022 Stadium Manager Expenses - NonCompensation for Guest Services o $202,812.00 for April - September 2022 Stadium Manager Expenses - NonCompensation for Grounds o $135,569.00 for October 2022 Stadium Manager Expenses - Security o $318,933.00 for October 2022 Stadium Manager Expenses - Stadium Ops o $207,406.00 for October 2022 Stadium Manager Expenses - Engineering o $48,914.00 for October 2022 Stadium Manager Expenses - Guest Services o $41,463.00 for October 2022 Stadium Manager Expenses - Grounds o $174,077.00 for October 2022 Stadium Manager Expenses - SBL Sales & Service o $81,710.00 for October 2022 Stadium Manager Expenses - Insurance o $6,745.54 for October 2022 Stadium Manager Expenses - Use of StadCo Tenant Improvements
o $51,887.00 for October 2022 Stadium Manager Expenses - Other G&A o $8,333.00 for October 2022 Stadium Manager Expenses - Lender Fees o $85,401.61 for CapEx Proj - Mechanical and Electrical Closet Lighting o $17,223.00 for CapEx Proj - Rust Prevention Mitigation o $33,954.90 for CapEx Proj - Club Space Flooring
· Payments totaling $20,005.12 to Armanino LLP for CapEx Proj - FMS Project · Payment totaling $2,537.50 to ECS Imaging, Inc for the following:
o $700.00 for SBL - Ongoing Processing
o $1,837.50 for SBL - Session Configuration
· Payments to Hanson Bridgett LLP for August & September 2022 Legal Services · Payment totaling $74,281.00 to HKS Architects, Inc for the following:
o $422.50 for CapEx Proj - North East Lobby Security Enhancements o $422.50 for CapEx Proj - Security Screening Locations o $1,320.00 for CapEx Proj - Plumbing (PRVs)
o $1,948.00 for CapEx Proj - Broadcast Booth Power
o $3,120.00 for CapEx Proj - Stadium Event Power Upgrades & Switchgear Electrical o $3,900.00 for CapEx Proj - Automatic Logic Control Building Engineering System o $5,280.00 for CapEx Proj - Stadium Event Power Upgrades & Switchgear Electrical City of Santa Clara Page 2 of 4 Printed on 12/2/2022
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22-1394 Agenda Date: 12/6/2022
o $21,920.00 for CapEx Proj - Stationary Electric Pressure Washers o $2,444.00 for CapEx Proj - VFDs
o $2,916.00 for CapEx Proj - Kitchen Exhaust Fans
o $3,260.00 for CapEx Proj - Creston Control & Building Operating System Upgrades o $27,328.00 for CapEx Proj - Radio Booth Cabling
· Payment totaling $14,345.10 to HY Floor & Gameline Painting for CapEx Proj - Club Space Flooring
· Payment to Jeffer Mangels Butler & Mitchell, LLP for July 2022 Legal Services · Payment totaling $25,000.00 to KPMG LLP for SCSA 2020/21 Audit · Payment totaling $245,934.47 to LRG Technologies, Inc for CapEx Proj - CCTV PopUp Trailers
· Payment totaling $16,800.00 to M. Arthur Gensler Jr. & Associates, Inc for the following:
o $5,575.00 for CapEx Proj - Stadium Event Signage
o $11,225.00 for CapEx Proj - Updated Stadium Wayfinding Signage · Payment totaling $41,580.00 to Mamava Inc for CapEx Proj - Private Lactation Spaces · Payment totaling $93,174.58 to Populous Group, LLC for the following:
o $20,600.00 for CapEx Proj - Women’s Locker Room
o $72,574.58 for CapEx Proj - Replace Furniture
· Payment totaling $51,257.25 to R.E. Cuddie Co. for CapEx Proj - Non-Slip Floor Matting · Payments totaling $11,111.08 to Wilson Ihrig for the following:
o $5,975.83 for August 2022 Noise Monitoring Services
o $5,135.25 for September 2022 Noise Monitoring Services
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(b)(5) in that it is an administrative activity that will not result in direct or indirect physical changes in the environment.
FISCAL IMPACT
The fiscal impact to the Stadium Authority is reflected in the amounts itemized above
COORDINATION
This report has been coordinated with the Stadium Authority Counsel’s Office.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email [email protected] <mailto:[email protected]>.
RECOMMENDATION
Approve the list of Stadium Authority Bills and Claims for October 2022.
Reviewed by: Kenn Lee, Treasurer
Approved by: Rajeev Batra, Executive Director
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22-1394 Agenda Date: 12/6/2022
ATTACHMENTS
1. October 2022 SCSA Bills and Claims
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Payment Date Vendor Invoice No. Description Fund Amount 10/17/2022 Bank of America N/A September 2022 Bank Fees (Account 0444) CapEx 1,455.92 10/17/2022 Bank of America N/A September 2022 Bank Fees (Account 0425) Operating 230.62 1,686.54
10/7/2022 City of Santa Clara N/A B2218 SCSA Admin Payroll Costs Operating 56,943.16 10/19/2022 City of Santa Clara N/A B2219 SCSA Admin Payroll Costs Operating 61,113.1210/25/2022 City of Santa Clara N/A B2220 SCSA Admin Payroll Costs Operating 68,601.82 186,658.10
10/3/2022 Stadium Funding Trust N/A Term A Loan - Interest Debt Service 5,385,381.0010/3/2022 Forty Niners Stadium Management Co, LLC SLS-23668 April - September 2022 Std Mgr - Non-Compensation for Security Operating 618,431.0010/3/2022 Forty Niners Stadium Management Co, LLC SLS-23668 April - September 2022 Std Mgr - Non-Compensation for Stadium Ops Operating 665,281.0010/3/2022 Forty Niners Stadium Management Co, LLC SLS-23668 April - September 2022 Std Mgr - Non-Compensation for Engineering Operating 383,545.0010/3/2022 Forty Niners Stadium Management Co, LLC SLS-23668 April - September 2022 Std Mgr - Non-Compensation for Guest Services Operating 105,674.0010/3/2022 Forty Niners Stadium Management Co, LLC SLS-23668 April - September 2022 Std Mgr - Non-Compensation for Grounds Operating 202,812.00 10/3/2022 Forty Niners Stadium Management Co, LLC SLS-23668 October 2022 Std Mgr - Security Operating 135,569.0010/3/2022 Forty Niners Stadium Management Co, LLC SLS-23668 October 2022 Std Mgr - Stadium Ops Operating 318,933.0010/3/2022 Forty Niners Stadium Management Co, LLC SLS-23668 October 2022 Std Mgr - Engineering Operating 207,406.0010/3/2022 Forty Niners Stadium Management Co, LLC SLS-23668 October 2022 Std Mgr - Guest Services Operating 48,914.0010/3/2022 Forty Niners Stadium Management Co, LLC SLS-23668 October 2022 Std Mgr - Grounds Operating 41,463.0010/3/2022 Forty Niners Stadium Management Co, LLC SLS-23668 October 2022 Std Mgr - SBL Sales & Service Operating 174,077.0010/3/2022 Forty Niners Stadium Management Co, LLC SLS-23668 October 2022 Std Mgr - Insurance Operating 81,710.0010/3/2022 Forty Niners Stadium Management Co, LLC SLS-23668 October 2022 Std Mgr - Use of StadCo Tenant Improvements Operating 6,745.5410/3/2022 Forty Niners Stadium Management Co, LLC SLS-23668 October 2022 Std Mgr - Other G&A Operating 51,887.0010/3/2022 Forty Niners Stadium Management Co, LLC SLS-23668 October 2022 Std Mgr - Lender Fees Operating 8,333.00 10/21/2022 Forty Niners Stadium Management Co, LLC SLS-23595 CapEx Proj - Mechanical and Electrical Closet Lighting CapEx 85,401.6110/21/2022 Forty Niners Stadium Management Co, LLC SLS-23608 CapEx Proj - Rust Prevention Mitigation CapEx 17,223.0010/21/2022 Forty Niners Stadium Management Co, LLC SLS-23607 CapEx Proj - Club Space Flooring CapEx 33,954.90 3,187,360.05
10/11/2022 Armanino LLP 915891 CapEx Proj - FMS Project CapEx 2,237.8110/11/2022 Armanino LLP 905178 CapEx Proj - FMS Project CapEx 8,747.8110/11/2022 Armanino LLP 933784 CapEx Proj - FMS Project CapEx 4,854.9410/24/2022 Armanino LLP 947245 CapEx Proj - FMS Project CapEx 4,164.56 20,005.12
10/12/2022 ECS Imaging, Inc 17250 SBL - Ongoing Processing Operating 700.0010/12/2022 ECS Imaging, Inc 17252 SBL - Session Configuration Operating 1,837.50 2,537.50
10/13/2022 Hanson Bridgett LLP Various August 2022 Legal Services Operating10/17/2022 Hanson Bridgett LLP Various September 2022 Legal Services Operating10/19/2022 HKS Architects, Inc 25326.003 CapEx Proj - North East Lobby Security Enhancements CapEx 422.5010/19/2022 HKS Architects, Inc 25326.003 CapEx Proj - Security Screening Locations CapEx 422.5010/19/2022 HKS Architects, Inc 25326.001 CapEx Proj - Plumbing (PRVs) CapEx 1,320.00 Santa Clara Stadium Authority
Bills and Claims
Expenses Paid by Wire or ACH Transfer
For the Month of October 2022
Payment Date Vendor Invoice No. Description Fund Amount Santa Clara Stadium Authority
Bills and Claims
Expenses Paid by Wire or ACH Transfer
For the Month of October 2022
10/19/2022 HKS Architects, Inc 25326.001 CapEx Proj - Broadcast Booth Power CapEx 1,948.0010/19/2022 HKS Architects, Inc 25326.001 CapEx Proj - Stadium Event Power Upgrades & Switchgear Electrical CapEx 3,120.0010/19/2022 HKS Architects, Inc 25326.001 CapEx Proj - Automatic Logic Control Building Engineering System CapEx 3,900.0010/19/2022 HKS Architects, Inc 25326.005 CapEx Proj - Stadium Event Power Upgrades & Switchgear Electrical CapEx 5,280.0010/19/2022 HKS Architects, Inc 25326.001 CapEx Proj - Stationary Electric Pressure Washers CapEx 21,920.0010/19/2022 HKS Architects, Inc 25326.001 CapEx Proj - VFDs CapEx 2,444.0010/19/2022 HKS Architects, Inc 25326.001 CapEx Proj - Kitchen Exhaust Fans CapEx 2,916.0010/19/2022 HKS Architects, Inc 25326.001 CapEx Proj - Creston Control & Building Operating System Upgrades CapEx 3,260.0010/19/2022 HKS Architects, Inc 25326.001 CapEx Proj - Radio Booth Cabling CapEx 27,328.00 74,281.00
10/24/2022 HY Floor & Gameline Painting 22160-02 CapEx Proj - Club Space Flooring CapEx 11,930.1010/24/2022 HY Floor & Gameline Painting 22160-RET CapEx Proj - Club Space Flooring CapEx 2,415.00 14,345.10
10/18/2022 Jeffer Mangels Butler & Mitchell, LLP 1861116 July 2022 Legal Services Operating10/12/2022 KPMG LLP 8004411697 SCSA 2020/21 Audit Operating 25,000.0010/24/2022 LRG Technologies, Inc 3-1217-1915 CapEx Proj - CCTV PopUp Trailers CapEx 245,934.4710/19/2022 M. Arthur Gensler Jr. & Associates, Inc 1021985 CapEx Proj - Stadium Event Signage CapEx 5,575.0010/19/2022 M. Arthur Gensler Jr. & Associates, Inc 1021983 CapEx Proj - Updated Stadium Wayfinding Signage CapEx 11,225.00 16,800.00
10/24/2022 Mamava Inc 3028_DEP CapEx Proj - Private Lactation Spaces CapEx 41,580.0010/19/2022 Populous Group, LLC 0073965 CapEx Proj - Women's Locker Room CapEx 20,600.0010/19/2022 Populous Group, LLC 0073964 CapEx Proj - Replace Furniture CapEx 72,574.58 93,174.58
10/24/2022 R.E. Cuddie Co. T10673 CapEx Proj - Non-Slip Floor Matting CapEx 10,251.4510/24/2022 R.E. Cuddie Co. T10673(2) CapEx Proj - Non-Slip Floor Matting CapEx 41,005.80 51,257.25
10/11/2022 Wilson Ihrig 16125N47 August 2022 Noise Monitoring Services Operating 5,975.8310/25/2022 Wilson Ihrig 16125N48 September 2022 Noise Monitoring Services Operating 5,135.25 11,111.08
October 2022 Total $ 9,434,752.64
City of Santa Clara
Agenda Report
1500 Warburton Avenue
Santa Clara, CA 95050
santaclaraca.gov
@SantaClaraCity
22-1369 Agenda Date: 12/6/2022
REPORT TO STADIUM AUTHORITY BOARD
SUBJECT
Action on the Santa Clara Stadium Authority Financial Status Report for Quarter Ending September 30, 2022
BOARD PILLARS
Ensure Compliance with Measure J and Manage Levi’s® Stadium Enhance Community Engagement and Transparency
BACKGROUND
In Fiscal Year 2014/15 the Stadium Authority Board (“Board”) requested that staff prepare quarterly Santa Clara Stadium Authority (“Stadium Authority”) Financial Status Reports. These reports provide an update on the events held at Levi’s® Stadium, Stadium Authority finances, and the impact of Stadium Authority activity on the City of Santa Clara’s (“City”).
This report provides information covering the Stadium Authority’s second (July 1, 2022 - September 30, 2022) quarter of the 2022/23 (“FY”) fiscal year.
The Adopted Stadium Authority Budget incorporates the estimated revenues and expenses for all Stadium Authority funds. The attached Financial Status Reports provide the budget to actual revenue and expense summaries for the operating, debt service, and capital funds. Analysis of the financial activity through the fiscal year measures the adherence to the budget and allows the Stadium Authority to monitor and project revenues and expenses. Any significant variances are explained in the reports.
Certain operating expense payments were withheld based on Board direction for the partial suspension of payments at the March 27, 2019 Stadium Authority Board meeting, based on the concern that public funds would be used to pay for expenses that were not legally procured, or compliant with prevailing wage law or self-dealing/conflict of interest laws. At that meeting, the Board directed the Executive Director to only release public funds to Forty Niners Stadium Management Company, LLC (“Stadium Manager”) when supporting documents have been submitted to show the expenses adhere to applicable agreements and laws.
At the March 15, 2022 Stadium Authority Board meeting, the Executive Director was delegated authority to approve budget amendments of $5.1 million to move funds from the Legal Contingency line item to Shared Expenses after the review of adequate documentations for costs based on Board direction. Subsequent to that direction, Stadium Authority staff met with Stadium Manager on April 12, 2022 to review documentation for shared expenses. After follow-up meetings with the Stadium Manager, payments related to compensation were reviewed and approved for monthly payment; these totaled $5.1 million for the fiscal year.
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22-1369 Agenda Date: 12/6/2022
On August 31, 2022, Stadium Authority, Forty Niners SC Stadium Company and Stadium Manager settled disputes regarding the partially suspended Shared Expenses and Operating and Management Expenses. As part of the settlement, the Stadium Authority agreed to pay for the budgeted expense for its share of Shared Stadium Manager Expenses and other expenses for the current fiscal year. As such, the payments were released in the third quarter.
At the November 1, 2022 Board meeting, during discussion of the fourth quarter FY 2021/22 Report, the Board inquired about the financial performance of the first and second quarter in FY 2022/23.
Information for the second quarter is included in this report.
DISCUSSION
The attached financial status reports provide information covering the Stadium Authority’s second quarter (July 1, 2022 - September 30, 2022) of FY 2022/23. The reports summarize National Football League (“NFL”) and Non-NFL event activity at Levi’s® Stadium and describes the financial impact of these events on the Stadium Authority and City since FY 2014/15. The report also provides the budget to actual revenue and expense summaries for the operating, debt service, and capital funds.
Analysis of the financial activity through the fiscal year measures the adherence to the budget and allows the Stadium Authority to monitor and project revenues and expenses. Any significant variances are explained in the report.
NFL Event Revenue and Expenses
There were two NFL games held in the second quarter of FY 2022/23. Levi’s® Stadium hosted one pre-season NFL game of the 2022 season on August 12, 2022 and one regular NFL season game of the 2022 season on September 18, 2022 which are detailed in the report. This resulted in $1.5 million in NFL ticket surcharge for the Stadium Authority and $48,000 of Senior and Youth Program Fees for the City. Public safety costs for NFL games totaled an estimated $855,000 which will be fully reimbursed to the City.
Non-NFL Event Revenue and Expenses
There were 5 ticketed Non-NFL events and 31 special events which are detailed in the report. The Non-NFL event ticket sales generated $955,000 in ticket surcharge revenue, half of which will fund the discretionary fund. Public safety costs for these events totaled an estimated $1.8 million which will be fully reimbursed to the City.
When combining ticketed and non-ticketed Non-NFL revenues to date, the table below shows approximately $4.0 million in net revenue (excluding surcharge revenue) through the end of the second quarter. It should be noted the financial information provided are a draft and subject to change as additional revenues and/or expenditures are recorded.
No. of
Events Net Revenue
Ticketed Events
Concerts 4 $ 2,986,483
Sporting events:
Football (Non-NFL) 0 -
Soccer 1 231,987
Miscellaneous Events 0 -
Subtotal Ticketed Events 5 $ 3,218,470
Subtotal Remaining NonNFL Events (weddingscorporate eventsetc) 31 $ 1350957 Event Type
Levi's® Stadium
Net Revenue for Non-NFL Events
by Event Type
FY 2022/23 Quarter 2
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No. of
Events Net Revenue
Ticketed Events
Concerts 4 $ 2,986,483
Sporting events:
Football (Non-NFL) 0 -
Soccer 1 231,987
Miscellaneous Events 0 -
Subtotal Ticketed Events 5 $ 3,218,470
Subtotal Remaining Non-NFL Events (weddings, corporate events, etc.) 31 $ 1,350,957 Subtotal Other Operating Expenses (2) $ (537,543)
Total Non-NFL Net Revenue 36 $ 4,031,884
Total Performance Rent paid to the General Fund (1) $ - (1) Performance Rent is calculated as 50% of the net revenue from Non-NFL events less performance-based credit of 50% of fixed ground rent
(2) Other Operating Expenses are expenses not attributable to a specific event Event Type
Levi's® Stadium
Net Revenue for Non-NFL Events
by Event Type
FY 2022/23 Quarter 2
Stadium Builder Licenses (“SBLs”)
SBLs account for 35% of the Stadium Authority’s annual budgeted revenue in FY 2022/23. As of June 30, 2022, there is a total of 61,845 currently active SBLs which is 94% of the 66,066 total sellable SBL seats. The value of the active SBLs amount to $539.6 million of which $503.0 million has already been collected. SBL details as of September 30, 2022 have not been received and will be reported in the next quarterly report.
Stadium Authority Budgets
The detailed analysis of Stadium Authority budget to actual financials is provided in the attached Financial Status Reports. In summary, total operating revenues were $35.7 million representing 52% of the overall budget for revenues and total operating expenses were $16.4 million or 30% of the budget. The debt service fund was able to pay down $15.7 million in debt, bringing total Stadium Authority debt down to $264.6 million. Capital expenses were $986,000 representing 4% of the overall CIP budget.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(b)(5) in that it is an administrative activity that will not result in direct or indirect physical changes in the environment.
FISCAL IMPACT
There is no fiscal impact to this report.
COORDINATION
This report was coordinated with the Stadium Manager per section 4.6 of the Management Agreement as well as the Stadium Authority Counsel’s Office.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board City of Santa Clara Page 3 of 4 Printed on 12/2/2022
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22-1369 Agenda Date: 12/6/2022
outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email [email protected] <mailto:[email protected]> or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Note and file the Santa Clara Stadium Authority Financial Status Report for the Quarter Ending September 30, 2022.
Reviewed by: Kenn Lee, Treasurer
Approved by: Rajeev Batra, Executive Director
ATTACHMENTS
1. SCSA Financial Status Report for the Quarter Ending September 30, 2022 City of Santa Clara Page 4 of 4 Printed on 12/2/2022
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SCSA
Santa Clara Stadium Authority
SANTA CLARA
STADIUM AUTHORITY
FINANCIAL STATUS REPORT
Quarter Ending September 30, 2022
December 6, 2022
1 Table of Contents
Introduction..................................................................................................................................................2 NFL Events..................................................................................................................................................3 Non-NFL Events.........................................................................................................................................6 Discretionary Fund...................................................................................................................................10 Stadium Builder Licenses ....................................................................................................................... 11 Santa Clara Stadium Authority Budget Status Reports...................................................................... 13 Operating Budget .................................................................................................................................13 Debt Service Budget............................................................................................................................ 16 Capital Improvement Project Budget ................................................................................................ 19 City of Santa Clara Net General Fund Impact ..................................................................................... 21 Public Safety and Administrative Cost Reimbursement................................................................. 21 Rents and Senior and Youth Fee ...................................................................................................... 21 Other Revenue Impacts ...................................................................................................................... 21 Glossary.....................................................................................................................................................23 2 Introduction
This Santa Clara Stadium Authority (“Stadium Authority”) Financial Status Report provides information covering the second quarter of the Stadium Authority’s 2022/23 fiscal year (“FY”) which ended on September 30, 2022. Comparative data from prior fiscal years is also included.
In addition to these quarterly reports, the Stadium Authority produces annual financial statements. The FY 2021/22 financial statements were audited by an external audit firm and presented to the Stadium Authority’s Audit Committee on September 30, 2022 and approved by the Stadium Authority Board (“Board”) on November 1, 2022. The financial statements are published on the Stadium Authority’s website.
The Stadium Authority also prepares a detailed budget prior to the beginning of each fiscal year. The FY 2022/23 budget was adopted by the Board on March 15, 2022.
Stadium Authority finances are structured so that the City of Santa Clara (“City”) is not liable for the debts or obligations of the Stadium Authority. All services provided by the City, including administrative and public safety, to the Forty Niners Stadium Management Company, LLC (“Stadium Manager”) or the Stadium Authority are fully reimbursed with Stadium Authority funds.
Methodology
Information provided in this report was based in part on documentation submitted by the Stadium Manager. Specifically, NFL and Non-NFL event statistics and financial information relating to the Stadium Manager expenses are provided by the Stadium Manager. Stadium Authority staff is limited to a review of selected financial information submitted by the Stadium Manager, including some source documentation for Non-NFL events with attendance greater than 25,000, submitted 45 days after each event. More detailed documents are received within 90 days after the close of the quarter. For all other financial information, a full detailed review and/or audit of source documentation has not been completed by the Stadium Authority for this report.
The Stadium Authority has contracted with JS Held (formerly Hagen, Streiff, Newton, & Oshiro), a forensic accounting firm, to review and evaluate Non-NFL event financial information from prior years, including source documentation. This report was discussed with the Board at the December 1, 2020 Stadium Authority Board meeting. The Stadium Authority is working with JS Held for the review of additional historical years. This report is expected to be brought to the Audit Committee by the end of this calendar year.
The information provided reflects the best known and available at the time of the writing of this report and is subject to further revision when the full body of records becomes available and review is complete. Consequently, the Board’s notation and filing of this report should not be considered an approval of the accuracy of the information in the report.
3 NFL Events
This section provides year to date and comparative data for NFL games categorized as pre-season and regular season games.
The San Francisco Forty-Niners (“49ers”) played a total of two NFL games (one preseason games and one regular season game) at Levi’s® Stadium as of September 30, 2022. There was a total of 136,506 tickets sold to these NFL games, an average of 68,253 per game. This is up by 1,769 or 3% when compared to the same period in the prior fiscal year. The ticket sales resulted in $1.5 million in NFL ticket surcharge revenue (10% of ticket sales) to the Stadium Authority. The average NFL ticket surcharge revenue was $770,000 per game in the current year which is down by $114,000 or 13% from the same period in the prior fiscal year. A total of $48,000 of Senior and Youth Program Fees, which is based on $0.35 per NFL ticket sold, were collected through the end of the second quarter of the fiscal year. These fees were transferred to the City’s General Fund in support of such programs.
A total of 11,703 cars were parked in the permitted offsite parking lots generating $72,000 in offsite parking fees. The overall number of cars parked in the permitted offsite lots declined by an average of 1,375 cars per game or 19% when compared to the prior fiscal year.
There was an estimated $855,000 of NFL event public safety costs in the current reporting period which is an average of $428,000 per game. This is down from the prior year average of $540,000. Of the $855,000 NFL event public safety costs, $685,000 or 80% are direct City costs and $170,000 or 20% are outside agency costs. $72,000 of the total NFL event public safety costs are covered by the offsite parking fees that were collected and the remaining are invoiced to the Stadium Manager. One of the outside agencies assisting the City with public safety is experiencing staffing shortages and delays in invoicing. As a result, NFL even public safety cost invoices were provided to the Stadium Manager in November 2022.
Statistics for the NFL games held at Levi’s® Stadium in the first two quarters of the 2022/23 fiscal year are shown in Table 1 and comparative data from all eight years of operations can be found in Table 2.
4 Table 1
Game 1 vs
Packers
Game 2 vs
Seahawks 2022/23
08/12/22 09/18/22 YTD Total
No. of Tickets Sold 66,747 69,759 136,506
NFL Ticket Surcharge 541,108 $ 999,315 $ $ 1,540,422
Senior/Youth Program Fees 23,361 $ 24,416 $ $ 47,777
Cars Parked at Offsite Lots 4,830 6,873 11,703
City Offsite Parking Fee 29,608 $ 42,131 $ $ 71,739
Cars Parked on Tasman Lots - - -
City Tasman Lot Parking Fee - $ - $ $ -
Stadium Public Safety Costs (1) $ 451,965 403,477 $ $ 855,442 Less: Offsite Parking Fee Credit (29,608) $ (42,131) $ $ (71,739) Reimbursable Stadium Public Safety Costs 373,870 $ 409,834 $ $ 783,703 Amount Reimbursed - $ - $ $ -
(1) Includes estimated stadium public safety costs from outside agencies Levi's® Stadium
2023/23 NFL Event Statistics
As of September 30, 2022
5 Table 2
2014/15 Q2 2015/16 Q2 2016/17 Q2 2017/18 Q2 2018/19 Q2 2019/20 Q2 2020/21 Q2 2021/22 Q2 2022/23 Q2 Total Total Total Total Total Total Total Total Total
No. of NFL Events 4 3 3 4 3 3 - 3 2
No. of Tickets Sold 271,503 198,634 188,705 249,408 190,840 184,769 - 199,451 136,506 NFL Ticket Surcharge 2,911,416 $ 1,851,550 $ 2,343,474 $ 2,544,721 $ 1,732,335 $ 2,416,387 $ - $ 2,651,401 $ 1,540,422 $ Senior/Youth Program Fees 95,026 $ 69,522 $ 66,047 $ 87,293 $ 66,794 $ 64,669 $ - $ 69,807 $ 47,777 $ Cars Parked at Offsite Lots 37,884 16,986 18,295 21,442 15,030 16,578 - 21,678 11,703 City Offsite Parking Fee 186,389 $ 86,289 $ 95,866 $ 116,216 $ 84,619 $ 96,981 $ - $ 128,117 $ 71,739 $ Cars Parked on Tasman Lots 1,737 1,967 1,689 2,357 1,244 1,485 - 1,180 - Cars Parked on Golf Course 11,378 7,353 - - - - - - -
City Tasman Lot and Golf Course Parking Fee 65,575 $ 46,600 $ 8,445 $ 11,785 $ 6,220 $ 7,425 $ - $ 5,900 $ - $ Stadium Public Safety Costs (1) $ 673,723 914,005 $ 740,565 $ 975,574 $ 764,421 $ 1,157,636 $ - $ 1,747,055 $ 855,442 $ Golf Course Public Safety Costs 111,690 $ 25,242 $ - $ - $ - $ - $ - $ (128,117) $ - $ Subtotal Event Public Safety Costs 1,025,695 $ 698,965 $ 740,565 $ 975,574 $ 764,421 $ 1,157,636 $ - $ 1,618,938 $ 855,442 $ Less: Offsite Parking Fee Credit (186,389) $ (86,289) $ (95,866) $ (116,216) $ (84,619) $ (96,981) $ - $ (128,117) $ (71,739) $ Reimbursable Stadium Public Safety Costs 839,306 $ 612,676 $ 644,700 $ 859,359 $ 679,802 $ 1,060,654 $ - $ 1,490,821 $ 783,703 $ Total Amount Reimbursed 839,306 $ 612,676 $ 644,700 $ 859,359 $ 679,802 $ 1,060,654 $ - $ 1,490,821 $ - $ (1) Includes estimated stadium public safety costs from outside agencies Levi's® Stadium
Historical NFL Event Statistics
6 Non-NFL Events
This section provides annual and comparative data for Non-NFL Events categorized as events ranging from high school and college football games, international soccer matches, concerts, wedding fairs, and special events. During the current reporting period there were a total of 237,386 tickets sold for the five ticketed Non-NFL events that were held, resulting in $955,000 Non-NFL event ticket surcharge revenue (from the $4 per ticket Non-NFL event surcharge). The ticketed Non-NFL events in the current reporting period were large-scale events resulting in a large increase in the ticket surcharge revenue over the same period in the prior year as there were no ticketed events held during FY 2021/22 which was impacted from restrictions due to the COVID-19 pandemic.
The Stadium Manager reports that there were also 31 smaller special events held at Levi’s® Stadium with 14,775 attendees during the current report period. Due to the pandemic, there were only 12 smaller special events held with 3,698 attendees during the entire FY 2021/22. Examples of these special events include corporate events of various sizes, weddings, holiday parties, high school dances, etc.
In correlation with increase in Non-NFL events held during the current reporting period, there were 20,388 cars parked at these offsite lots and the City has received $7,000 of a total of $124,000 in related offsite parking fees.
Total Non-NFL event public safety costs were $1.8 million. As noted previously, this increase in cost is due to more events being held in the current year when compared to the prior year. Of these costs, $124,000 were covered by the offsite parking fee. The remaining $1.7 million are invoiced to the Stadium Manager of which $4,000 has been reimbursed.
Statistics for the five Non-NFL ticketed events and 31 special events are shown in Table 3 and comparative data from all eight years of operations are shown in Table 4. 7 Table 3
8 Table 4
2014/15 Q2 2015/16 Q2 2016/17 Q2 2017/18 Q2 2018/19 Q2 2019/20 Q2 2020/21 Q2 2021/22 Q2 2022/23 Q2 Total Total Total Total Total Total Total Total Total
No. of non-NFL Ticketed Events 2 13 14 7 7 6 - - 5
No. of Tickets Sold 106,699 542,390 518,542 210,157 231,849 125,587 - - 237,386 Non-NFL Ticket Surcharge 426,796 $ 2,130,628 $ 2,074,168 $ 840,628 $ 927,396 $ 502,348 $ - $ - $ 954,848 $ No. of Non-NFL Special Events 43 100 53 42 41 28 - - 31 Non-NFL Special Event Attendees 12,521 73,196 17,959 23,726 15,943 7,752 - - 14,775 Cars Parked at Offsite Lots 10,748 51,669 55,731 19,466 22,338 13,130 - - 20,388 City Offsite Parking Fee 52,880 $ 258,252 $ 286,531 $ 104,077 $ 123,559 $ 75,164 $ - $ - $ 123,732 $ Cars Parked on Golf Course 5,413 19,743 9,562 - - - - - - City Golf Course Parking Fee 27,065 $ 98,715 $ 47,810 $ - $ - $ - $ - $ - $ - $ Stadium Public Safety Costs 444,151 $ 2,624,988 $ 2,469,148 $ 1,035,289 $ 1,378,966 $ 1,004,000 $ - $ - $ 1,808,022 $ Golf Course Public Safety Costs 55,701 $ 113,440 $ 39,905 $ - $ - $ - $ - $ - $ - $ Subtotal Event Public Safety Costs - $ 1,499,026 $ 1,760,960 $ 1,035,289 $ 1,378,966 $ 1,004,000 $ - $ - $ 1,808,022 $ Less: Offsite Parking Fee Credit (52,880) $ (258,252) $ (286,531) $ (104,077) $ (123,559) $ (75,164) $ - $ - $ (123,732) $ Reimbursable Public Safety Costs 446,972 $ 2,480,177 $ 2,222,522 $ 931,212 $ 1,255,407 $ 928,836 $ - $ - $ 1,684,290 $ Amount Reimbursed 446,972 $ 2,480,177 $ 2,222,522 $ 931,212 $ 1,255,407 $ 928,836 $ - $ - $ 4,309 $ (1) Includes Non-NFL special events.
Levi's® Stadium
Historical Non-NFL Event Statistics(1)
9 Table 5 and 6 show Non-NFL net revenue by event type and event revenue and expense by category. The inclusion of this information is to provide a greater level of transparency and provide the overall financial results of the Non-NFL events.
For FY 2022/23, the Stadium Manager anticipates Non-NFL events to result in net profits to range from $250,000 to $1,750,000, as cited in the FY 2022/23 Adopted Stadium Authority Budget. In the first two quarters of FY2022/23, ticketed events and non-ticketed special events contributed $3.2 million and $1.4 million in net profits, respectively. Offset by $538,000 of non-event specific other operating expenses, the Stadium Manager reported a net profit of $1.8 million for the current reporting period.
Table 5
No. of
Events Net Revenue
Ticketed Events
Concerts 4 $ 2,986,483
Sporting events:
Football (Non-NFL) 0 -
Soccer 1 231,987
Miscellaneous Events 0 -
Subtotal Ticketed Events 5 3,218,470 $
Subtotal Remaining Non-NFL Events (weddings, corporate events, etc.) 31 1,350,957 $ Subtotal Other Operating Expenses (2) $ (537,543)
Total Non-NFL Net Revenue 36 4,031,884 $
Total Performance Rent paid to the General Fund (1) $ - (1) Performance Rent is calculated as 50% of the net revenue from Non-NFL events less performance-based credit of 50% of fixed ground rent
(2) Other Operating Expenses are expenses not attributable to a specific event Event Type
Levi's® Stadium
Net Revenue for Non-NFL Events
by Event Type
FY 2022/23 Quarter 2
10 Table 6
Discretionary Fund
The Discretionary Fund is funded by revenue equal to 50% of the Non-NFL Ticket Surcharge of $4 per ticket. The five ticketed Non-NFL events contributed $351,000 to the Discretionary Fund in the reporting period. Table 7 shows the revenues and expenses in the Discretionary Fund since FY2014/15. The balance at the end of this reporting period was $2.7 million.
2022/23
YTD Total
REVENUE:
Seating Bowl 30,933,697 $
Ticketmaster Fees 2,368,926
Suites 400,367
Parking 787,244
Food & Beverage - Ticketed Events 1,851,825
Food & Beverage - Special Events 378,076
Facility Fee 831,626
Miscellaneous(1) 4,965,783
Total Revenue 42,517,544 $
EXPENSE:
Public Safety/Security 3,444,938 $
Parking 1,224,807
Food & Beverage - Ticketed Events 255,896
Food & Beverage - Special Events 2,052,205
Operations/Janitorial/Maintenance 5,173,440
Miscellaneous(2) 26,334,374
Total Expense 38,485,660 $
Total Non-NFL Net Revenue 4,031,884 $
(1) Includes special events revenue such as corporate events, weddings, holiday parties, etc. (2) Includes rentals, fees & commissions, transportation, marketing, and other expenses Levi's® Stadium
Non-NFL Event Results by Category
FY 2022/23 Quarter 2
11 Table 7
Stadium Builder Licenses
The total principal value of currently active Stadium Builder Licenses (“SBLs”) is $539.6 million and, as of June 30, 2022, 93% of the total principal value of all SBLs sold (i.e., $503.0 million) had been collected. SBL details as of September 30, 2022 have not been received and will be reported in the next quarterly report.
SBL holders that finance their purchase pay an annual interest rate of 8.5% and payments are due by March 1st each year. The majority of SBL holders make their payments on time. For those that do not pay on time, SBL service staff, working for the Stadium Manager on the Stadium Authority’s behalf, contact the SBL holders and attempt to collect the full amounts owed. Ultimately, an SBL can be defaulted for non-payment. Once an SBL is defaulted, the SBL holder in default loses their right to buy season tickets as well as their priority rights to tickets to Non-NFL Events, and forfeits any money they had invested in the SBL. Defaulted SBLs are then available for resale.
There is a total of 61,548 currently active SBLs, or 93% of the 66,066 sellable SBL seats as of June 30, 2022. This is an increase of 1,180 from the total active SBLs at the end of the prior fiscal year (March 31, 2021). The main reasons for the increase are due to sale of new SBLs offset by the customer seat relocation program and default buy back. The customer seat relocation program allows customers to trade in their SBLs in return for others in a different location as long as the total face value of the new seats is equal to or greater than the original seats.
During the first quarter, 286 SBLs were sold for a total face value of $2.2 million. The customer seat relocation program resulted in an increase of $1.2 million to the SBL face value while netting 157 more SBLs. There were also 553 SBLs defaulted during the quarter with a face value of $3.2 million.
Additional details regarding currently active SBLs as of June 30, 2022 are noted in Table
8. Fiscal Year
Beginning
Balance Revenue Expenses Ending Balance
2014/15 - $ 715,770 $ 714,028 $ 1,742 $
2015/16 1,742 1,238,542 699,129 541,155
2016/17 541,155 1,164,698 1,209,342 496,511
2017/18 496,511 768,564 - 1,265,075
2018/19 1,265,075 796,294 101,267 1,960,102
2019/20 1,960,102 367,748 - 2,327,850
2020/21 2,327,850 - 18 2,327,832
2021/22 2,327,832 - (18) 2,327,850
2022/23 2,327,850 351,440 1 2,679,289
Discretionary Fund - Accrual Basis
12 Table 8
SBL Seats
Available
SBL Seats Sold as
of 3/31/22
New SBL
Sales
Net SBL
Relocations
SBL
Defaults Other SBL Seats Sold SBL Value SBL Collected % SBL Principal Collected 100 100 - - - - 100 14,082,625 $ 13,079,310 $ 92.9% 928 942 2 8 - - 938 75,040,000 $ 72,151,621 $ 96.2% 2 2 - - - - 2 80,000 $ 74,257 $ 92.8%
4,549 4,945 18 10 (21) - 4,556 136,680,000 $ 129,138,376 $ 94.5% 2,894 3,475 20 - (12) - 2,902 58,040,000 $ 54,131,038 $ 93.3% 7 7 - - - - 7 105,000 $ 96,939 $ 92.3%
2,199 2,163 6 - (7) - 2,198 26,376,000 $ 24,175,245 $ 91.7% 7 7 - - - - 7 70,000 $ 68,871 $ 98.4%
20,850 20,651 36 22 (178) - 20,730 124,380,000 $ 114,682,604 $ 92.2% 14,037 14,307 140 (21) (158) - 13,998 69,990,000 $ 62,889,021 $ 89.9% 919 916 3 1 - - 923 3,692,000 $ 3,618,812 $ 98.0%
91 91 - - - - 91 273,000 $ 257,424 $ 94.3%
44 40 - - - - 44 110,000 $ 105,630 $ 96.0%
15,296 18,392 61 137 (177) - 15,317 30,634,000 $ 28,543,314 $ 93.2% 32 28 - - - - 32 32,000 $ 30,409 $ 95.0%
61,955 66,066 286 157 (553) - 61,845 539,584,625 $ 503,042,871 $ 93.2% Plus: Interest on financed SBLs 66,133,956
Total Principal & Interest 569,176,827
(1) This table does not include $29.1 million that has been collected life-to-date from defaulted SBL holders.
Total
10,000
Santa Clara Stadium Authority
Currently Active Stadium Builder License (SBL) Summary (1) Through June 30, 2022
Seat Value
141,392
80,00040,00030,00020,00015,00012,000
6,0005,0004,0003,0002,5002,0001,000
13 Santa Clara Stadium Authority Budget Status Reports
Operating Budget
With 50% of the fiscal year complete, total operating revenues for the second quarter of the FY 2022/23 were $35.7 million representing 52% of the overall budget for revenues.
Stadium rent earned from StadCo totaled $13.2 million or 53% of budget. During the current reporting period, the Stadium Authority collected $12.4 million in SBL proceeds or 51% of what was budgeted. All SBL proceeds are to be transferred to the debt service fund per applicable loan agreements. Stadium Authority also collected NFL ticket surcharges, Sponsorship Revenue, Naming Rights Revenue, and Senior & Youth Program Fees all of which are expected to meet budget this fiscal year.
Total operating expenses were $22.6 million, or 33% of the annual budget, which included the debt service transfers of $12.3 million.
For the current fiscal year, the Stadium Authority’s FY2022/23 budget was adopted on March 15, 2022 and included the Stadium Manager’s recommended Shared Expense budget of $10.5 million in a Legal Contingency line item. The expenses that were included in the Legal Contingency line are Stadium Operations, Engineering, Guest Services, Groundskeeping, Security and the Stadium Management Fee. However, the Executive Director was delegated authority to approve budget amendments of $5.1 million to move funds from the Legal Contingency line item to Shared Expenses after the review of adequate documentations for costs based on Board direction. Subsequent to that direction, Stadium Authority staff met with the Stadium Manager on April 12, 2022 to review documentation for shared expenses. After follow-up meetings with the Stadium Manager, payments related to compensation were reviewed and approved for monthly payment, totaling $5.1 million for the fiscal year.
Shared Stadium Manger expenses were at 49% or $6.1 million of the $12.5 million budgeted amount, and SBL Sales & Service expenses were 50% of the budget, or $1.0 million. The Stadium Authority pays for all utility costs from February 1st through July 31st and the tenant (StadCo) pays for utility costs from August 1st through January 31st (Tenant Season). Therefore, utility costs are 67% of the budget for the second quarter, or $1.0 million. The current reporting period covers 67% (four out of the six months) that the Stadium Authority is responsible for utility costs. Transfers out for debt service amounted to $12.3 million. Lastly, Stadium Authority G&A costs were tracking below budgeted levels at $1.2 million or 27% of the budget.
On August 31, 2022, the Stadium Authority entered into a settlement agreement with StadCo and Stadium Manager over disputes regarding the Operating and Management Expenses, Shared Expenses, and Capital Expenditures that were previously withheld. As part of the settlement, the Stadium Authority agreed to pay for the budgeted expense for its share of Shared Stadium Manager Expenses and other expenses for the current fiscal year. The Stadium Authority released all of the previously withheld expenses in the first quarter to the Stadium Manager on October 3, 2022. As such, the payment will be included in the third quarter report.
14 Overall, the Stadium Authority operating fund ended the second quarter with a fund balance of $52.1 million, an increase of $13.1 million or 34%. Included in that amount is an $12.3 million operating reserve and a $2.7 million discretionary fund.
Additional details are shown in Table 9.
15 Table 9
Budget to Budget to
Adopted Amended Q1 Q2 YTD Actual Amended YTD Actual
Budget Budget Actuals Actuals Actuals Difference % Received Budget Actuals Difference % Received Resources
Revenues
NFL Ticket Surcharge 10,822,000 $ 10,822,000 $ - $ 1,540,422 $ 1,540,422 $ 9,281,578 $ 14% 8,665,000 $ 2,651,401 $ 6,013,599 $ 31% SBL Proceeds 24,398,000 24,398,000 - 12,382,812 12,382,812 12,015,188 51% 23,682,000 11,577,075 12,104,925 49% Interest 15,000 15,000 60,600 267,337 327,937 (312,937) 2186% 56,000 9,593 46,407 17% Non-NFL Event Revenue 250,000 250,000 - - - 250,000 0% - - - NA Net Revenues from Non-NFL Events - - - - - - NA - - - NA Naming Rights 7,380,000 7,380,000 3,635,630 3,635,630 7,271,260 108,740 99% 7,165,000 3,529,738 3,635,262 49% Sponsorship Revenue (STR) 405,000 405,000 148,143 81,250 229,393 175,607 57% 325,000 162,500 162,500 50% Rent 24,762,000 24,762,000 5,640,899 7,564,501 13,205,400 11,556,600 53% 24,762,000 12,931,600 11,830,400 52% Senior & Youth Program Fees 237,000 237,000 - 47,777 47,777 189,223 20% 232,000 69,808 162,192 30% Non-NFL Event Ticket Surcharge 574,000 574,000 201,912 500,968 702,880 (128,880) 122% 150,000 - 150,000 0% Other Revenue - - - - - - NA - - - NA
Revenues Subtotal 68,843,000 $ 68,843,000 $ 9,687,184 $ 26,020,697 $ 35,707,881 $ 33,135,119 $ 52% 65,037,000 $ 30,931,715 $ 34,105,285 $ 48% Net Transfers - - - - - - NA - - - NA
Total Resources 68,843,000 $ 68,843,000 $ 9,687,184 $ 26,020,697 $ 35,707,881 $ 33,135,119 $ 52% 65,037,000 $ 30,931,715 $ 34,105,285 $ 48% Budget to Budget to
Adopted Amended Q1 Q2 YTD Actual Amended YTD Actual
Budget Budget Actuals Actuals Actuals Difference % Used Budget Actuals Difference % Used Expenses
Shared Stadium Manager Expenses
Stadium Operations - $ 3,827,196 $ 832,211 $ 1,081,387 $ 1,913,598 $ 1,913,598 $ 50% 1,681,393 $ 1,027,508 $ 653,885 $ 61% Engineering - 2,488,872 573,927 670,509 1,244,436 1,244,436 50% 1,543,240 860,670 682,570 56% Guest Services - 586,968 125,206 168,278 293,484 293,484 50% 304,134 135,265 168,869 44% Groundskeeping - 497,556 30,642 218,136 248,778 248,778 50% 93,809 52,325 41,484 56% Security - 1,626,828 129,989 683,425 813,414 813,414 50% 378,652 211,170 167,482 56% Procurement - - - - - NA 311,412 51,902 259,510 17%
Insurance 3,230,000 3,230,000 2,935,718 (1,320,586) 1,615,132 1,614,868 50% 3,136,000 1,678,089 1,457,911 54% Stadium Management Fee - 253,000 - - - 253,000 0% - - - NA Shared Stadium Mngr Exps Subtotal 3,230,000 $ 12,510,420 $ 4,627,693 $ 1,501,149 $ 6,128,842 $ 6,381,578 $ 49% 7,448,640 $ 4,016,929 $ 3,431,711 $ 54% Other Expenses
SBL Sales and Service 2,089,000 $ 2,089,000 $ 696,308 $ 348,154 $ 1,044,462 $ 1,044,538 $ 50% 3,448,000 $ 1,260,000 $ 2,188,000 $ 37% Senior & Youth Fees (paid to City) 237,000 237,000 - 47,777 47,777 189,223 20% 232,000 93,264 138,736 40% Non-NFL Event Expense - - - - - - NA 600,000 - 600,000 0% Ground Rent (paid to City) 460,000 460,000 - 460,000 460,000 - 100% 425,000 425,000 - 100% Performance Rent (paid to City) - - - - - - NA - - - NA Discretionary Fund Expense 250,000 250,000 - - - 250,000 0% 250,000 - 250,000 0% Utilities 1,444,000 1,444,000 962,496 - 962,496 481,504 67% 1,586,000 495,500 1,090,500 31% Use of StadCo Tenant Improvements 48,000 48,000 11,602 14,188 25,790 22,210 54% 26,000 - 26,000 0% Stadium Authority G&A 4,205,000 4,205,000 515,590 635,415 1,151,005 3,053,995 27% 5,115,000 1,262,562 3,852,438 25% Naming Rights Commission 91,000 91,000 45,445 - 45,445 45,555 50% 88,000 44,122 43,878 50% Legal Contingency 10,542,420 1,262,000 - - - 1,262,000 0% 3,810,360 - 3,810,360 0% Other Expenses 723,000 723,000 240,879 120,440 361,319 361,681 50% 388,000 1,353 386,647 0% Transfers Out 44,785,580 44,785,580 - 12,337,956 12,337,956 32,447,624 28% 41,512,000 13,716,691 27,795,309 33% Other Expenses Subtotal 64,875,000 $ 55,594,580 $ 2,472,321 $ 13,963,930 $ 16,436,250 $ 39,158,330 $ 30% 57,480,360 $ 17,298,492 $ 40,181,868 $ 30% Total Expenses 68,105,000 $ 68,105,000 $ 7,100,014 $ 15,465,079 $ 22,565,092 $ 45,539,908 $ 33% 64,929,000 $ 21,315,421 $ 43,613,579 $ 33% Operating Reserve 12,329,870 $ 12,329,870 $ 12,302,419 $ 9,693,657 $ 11,940,523 $ Discretionary Fund 2,364,850 $ 2,364,850 $ 2,679,290 $ 2,327,832 $ 2,327,850 $ Operating Budget Status Report
For the Period Ending September 30, 2022 and 2021
Period Ending September 30, 2022 Period Ending September 30, 2021 Santa Clara Stadium Authority
16 Debt Service Budget
The Stadium Authority’s FY 2022/23 debt service revenue budget of $2.1 million represents anticipated contributions from the Community Facilities District (CFD). CFD levies and collects a special hotel tax on hotel rooms within the CFD. All collections from the special CFD hotel taxes are contributed to Stadium Authority to pay down the CFD Advance. The CFD Advance is payable solely from amounts received by the Stadium Authority from the CFD. During the first two quarters, $899,000 was contributed by the CFD, or 42% of the annual budget.
Total Stadium Authority debt service expenses for the current reporting period were $22.5 million, 52% of the budgeted amount. The debt service expenses for the CFD Advance, the Term A Loan, and the StadCo Subordinated Loan were $978,000, $20.1 million, and $1.4 million, respectively.
As of September 30, 2022, the total outstanding amount of Stadium Authority debt had declined to $264.6 million. This is a reduction in principal of $15.7 million from the March 31, 2022 outstanding debt amount of $280.3 million.
Additional details are shown in Tables 10 and 11 and Chart 1. 17 Table 10
Budget to Budget to
Adopted Amended Q1 Q2 YTD Actual Amended YTD Actual
Budget Budget Actuals Actuals Actuals Difference % Received Budget Actuals Difference % Received Resources
Revenues
Contribution from CFD 2,124,000 $ 2,124,000 $ 611,227 $ 287,529 $ 898,755 $ 1,225,245 $ 42% 483,000 $ 415,935 $ 67,065 $ 86% Revenues Subtotal 2,124,000 $ 2,124,000 $ 611,227 $ 287,529 $ 898,755 $ 1,225,245 $ 42% 483,000 $ 415,935 $ 67,065 $ 86% Net Transfers In from Operating 40,984,580 40,984,580 - 12,337,956 12,337,956 28,646,624 30% 37,572,000 13,716,692 23,855,308 37% Contribution from Fund Balance - - 18,371,442 (9,128,063) 9,243,379 (9,243,379) NA - 7,126,543 (7,126,543) NA Total Resources 43,108,580 $ 43,108,580 $ 18,982,669 $ 3,497,422 $ 22,480,091 $ 20,628,489 $ 52% 38,055,000 $ 21,259,171 $ 16,795,829 $ 56% Budget to Budget to
Adopted Amended Q1 Q2 YTD Actual Amended YTD Actual
Budget Budget Actuals Actuals Actuals Difference % Used Budget Actuals Difference % Used Expenses
CFD Advance 2,042,000 $ 2,042,000 $ 433,923 $ 544,403 $ 978,325 $ 1,063,675 $ 48% 483,000 $ 847,573 $ (364,573) $ 175% Term A Loan 25,494,000 25,494,000 17,415,690 2,692,691 20,108,381 $ 5,385,619 79% 25,529,000 19,775,456 5,753,544 77% StadCo Subordinated Loan 15,490,580 15,490,580 1,133,056 260,329 1,393,384 $ 14,097,196 9% 12,043,000 636,142 11,406,858 5% Total Expenses 43,026,580 $ 43,026,580 $ 18,982,669 $ 3,497,422 $ 22,480,091 $ 20,546,489 $ 52% 38,055,000 $ 21,259,171 $ 16,795,829 $ 56% Debt Service Reserve 11,536,235 $ 11,536,235 $ 11,536,235 $ 11,536,235 $ 11,536,235 $ Debt Service Budget Status Report
For the Period Ending September 30, 2022 and 2021
Period Ending September 30, 2022 Period Ending September 30, 2021 Santa Clara Stadium Authority
18 Table 11
Chart 1
Type of Indebtedness
Interest
Rates
Outstanding as of
March 31, 2022 Net Change
Outstanding as of
September 30, 2022
Stadium Funding Trust Loan:
Term A Loan 5.00% 230,138,240 $ (14,723,000) $ 215,415,240 $ StadCo CFD Advance 5.73% 30,374,502 (105,712) 30,268,790 StadCo Subordinated Loan 5.50% 19,800,950 (867,953) 18,932,997 Total $ 280,313,692 $ (15,696,665) $ 264,617,027
Period Ending September 30, 2022
Santa Clara Stadium Authority
Debt Summary Report
19 Capital Improvement Project Budget
As part of the Capital Expense (“CapEx”) Plan, the following projects have been completed as of the current reporting period:
Financial Management Information System Project
Emergency Recycled Water Line Repair Project
Command Post Communication Equipment
The following CapEx projects are currently in progress and expected to be completed by the end of the fiscal year:
Stadium Insulation CapEx Project
Non-Slip Floor Matting CapEx Project
Lift Station CapEx Project
Mechanical and Electrical Closet Lighting CapEx Project Rust Prevention Mitigation CapEx Project
Loading Dock Lighting CapEx Project
The CIP Budget increased from $21.7 million to $23.0 million in the current reporting period. A total of $986,000 has been spent in FY 2022/23, which amounts to 4% of the budget. The main reasons that this is below budget are (1) there has been little activity on warranty work which makes up 7% of the CIP Budget, (2) delays in projects due to staffing shortage from the contractors as a result of COVID-19, and (3) a number of projects are under compliance reviews of State procurement and prevailing wage laws.
On August 31, 2022, the Stadium Authority entered into a settlement agreement with StadCo and Stadium Manager over disputes regarding the Operating and Management Expenses, Shared Expenses, and Capital Expenditures that were previously withheld. As part of the settlement, in regards to Capital Expenditures, the Stadium Authority agreed to discontinue the current practice of withholding payment for Capital Expenditures subject to the review and approval of the prevailing wage documentation by Stadium Authority’s labor law compliance consultant. Under the Settlement Agreement, Stadium Manager further confirmed its obligation to comply with applicable laws, including Prevailing Wage Laws, and Stadium Manager also implemented its new internal Prevailing Wage Laws compliance policy and procedures. Accordingly, the Stadium Authority will process the invoice payments as they come in.
Additional details are shown below in Table 12.
20 Table 12
Budget to Budget to
Adopted Amended Q1 Q2 YTD Actual Amended YTD Actual
Budget Budget Actuals Actuals Actuals Difference % Received Budget Actuals Difference % Received Beginning Balances 22,103,296 $ 22,103,296 $ 23,001,058 $ 22,850,846 $ 23,001,058 $ (897,762) $ 19,438,420 $ 20,805,741 $ (1,367,321) $ Resources
3,800,310 3,800,310 - - - 3,800,310 0% 3,940,000 - 3,940,000 0% - - - - - - NA - - - NA
Total Resources 25,903,606 $ 25,903,606 $ 23,001,058 $ 22,850,846 $ 23,001,058 $ 2,902,548 $ 89% 23,378,420 $ 20,805,741 $ 2,572,679 $ 89% Budget to Budget to
Final Amended Q1 Q2 YTD Actual Amended YTD Actual
Budget Budget Actuals Actuals Actuals Difference % Used Budget Actuals Difference % Used Expenses
Construction 12,699,189 13,905,231 52,627 461,087 513,714 13,391,517 4% 6,993,911 324,661 6,669,250 5% Equipment 6,555,678 6,555,678 97,584 374,462 472,047 6,083,631 7% 5,734,770 92,524 5,642,246 2% Contingency 962,743 962,743 - - - 962,743 0% 623,935 - 623,935 0% Stadium Warranty Related Construction 1,528,202 1,528,202 - - - 1,528,202 0% 1,528,202 - 1,528,202 0% Total Expenses 21,745,812 $ 22,951,854 $ 150,211 $ 835,550 $ 985,761 $ 21,966,093 $ 4% 14,880,818 $ 417,185 $ 14,463,633 $ 3% Ending Balances 4,157,794 $ 2,951,752 $ 22,850,846 $ 22,015,297 $ 22,015,297 $ 8,497,602 $ 20,388,556 $ Transfers In from Stadium Manager
CIP Budget Status Report
Transfers In from Operating Budget
For the Period Ending September 30, 2022 and 2021
Period Ending September 30, 2022 Period Ending September 30, 2021 Santa Clara Stadium Authority
21 City of Santa Clara Net General Fund Impact
During the current reporting period there was a total of $666,000 that was contributed to the General Fund as shown in Table 13. This section of the report also provides information on General Fund revenue and expenditure impacts resulting from the stadium.
Table 13
Public Safety and Administrative Cost Reimbursement
As described in earlier sections of this report, costs incurred by the City on NFL and NonNFL Events are tracked and billed to the Stadium Manager. Reimbursements are monitored and included in this report. Public safety costs incurred in support of NFL and Non-NFL events occurring in FY2022/23 totaled $855,000 and $1.8 million, respectively.
These reimbursements come from a combination of payments from the Stadium Manager and the offsite parking fees that were collected. The City has received $4,000 in reimbursements as of the end of November 2022.
In addition to public safety costs, administrative costs are also tracked and billed to the Stadium Authority. These include the cost of providing overall stadium management, financial, human resource, legal, and other services to the Stadium Authority. In the first two quarters of FY 2022/23, a total of $740,000 of administrative costs were incurred by the General Fund, which have been reimbursed to the City.
Rents and Senior and Youth Fee
As noted above the City’s General Fund collected ground rent of $460,000. Additionally, the Senior and Youth Fee generated $48,000, of which the entire amount forwarded to the City in support of senior and youth programs. See the Glossary for more information on these revenues and how they are calculated.
Other Revenue Impacts
General Fund sales tax, property tax, and transient occupancy tax (TOT) collections have benefited from the direct and indirect economic activity related to stadium events.
Ground Rent 460,000 $
Performance Rent -
Senior and Youth Fee 47,777
Tasman Lots Parking Fee -
Sales Tax 158,009
$ 665,786
City of Santa Clara
Net General Fund Impact
For Stadium Authority Fiscal Year to Date Ending September 30, 2022 Total Net General Fund Impact
22 Food and beverage concession sales and merchandise sales at Levi’s® Stadium are taxable, resulting in sales tax revenue for the City. The last two quarters of sales tax collections from Levi’s® Stadium transactions generated $158,000 for the City’s General Fund. In addition to the direct sellers at the Stadium, other businesses in Santa Clara are benefiting from the influx of people coming to attend one or more events at Levi’s® Stadium, resulting in potentially more sales tax collections for the General Fund.
In accordance with State Law, StadCo must pay possessory interest property tax based on their lease of Levi’s® Stadium from the Stadium Authority. This revenue is collected by the county and placed into the Redevelopment Property Tax Trust Fund (RPTTF).
Amounts remaining in the RPTTF after paying any enforceable obligations of the Successor Agency are distributed to taxing entities in the same proportion as secured property taxes. The City’s proportion is approximately 10%.
Many stadium events bring travelers to the region, resulting in hotel stays which generate TOT collections for the City’s General Fund. Although it is impossible to say exactly what portion of the City’s TOT collections is due to the stadium, it is clear that hotels both inside and outside the City have benefited, resulting in increases in TOT collections in Santa Clara and our neighboring cities.
23 Glossary
This section of the report provides details behind key terms that are used in the body of this report.
Discretionary Fund – The Amended and Restated Stadium Lease Agreement describes the Non-NFL Event ticket surcharge which is imposed by the Stadium Authority. All promotors or sponsors of ticketed Non-NFL Events are required to collect a Non-NFL ticket surcharge of $4 per ticket on behalf of the Stadium Authority. One-half of these proceeds are used to cover Stadium Authority operating and maintenance costs. The other one-half of the proceeds are deposited in the Stadium Authority’s discretionary fund.
If at any time the discretionary fund balance exceeds $1 million, then in consultation with the Stadium Manager, the Stadium Authority will determine if provision has been made for replacement and improvement of capital improvements contemplated under the public safety plan. If not, then funds will be reserved in the discretionary fund for such purposes.
If adequate provision has been made for these items and the balance of the discretionary fund still exceeds $1 million, then up to half of the amount over $1 million can be transferred to the General Fund, in which event an equal amount will also be transferred from the discretionary fund to the Stadium Authority operating fund and will be included as revenue available to pay Stadium Authority expenses.
Ground Lease – The Ground Lease Agreement has an initial term of 40 years commencing on the date of substantial completion which was July 31, 2014. The amount of annual base ground rent that is payable by the Stadium Authority to the City is noted in Chart 2 below.
Chart 2
Lease Year Fiscal Year
Annual Fixed
Ground Rent
1 2014/15 180,000 $
2 2015/16 215,000 $
3 2016/17 250,000 $
4 2017/18 285,000 $
5 2018/19 320,000 $
6 2019/20 355,000 $
7 2020/21 390,000 $
8 2021/22 425,000 $
9 2022/23 460,000 $
10 2023/24 495,000 $
11-15 2024/25 - 2028/29 1,000,000 $
16-20 2029/30 - 2033/34 1,100,000 $
21-25 2034/35 - 2038/39 1,200,000 $
26-30 2039/40 - 2043/44 1,300,000 $
31-35 2044/45 - 2048/49 1,400,000 $
36-40 2049/50 - 2053/54 1,500,000 $
24 Net Non-NFL Event Revenue – Net Non-NFL Event revenue is remitted by the Stadium Manager to the Stadium Authority on a yearly basis. This is done annually because the final reconciliation of the Non-NFL event revenues and expenses does not occur until after the conclusion of each fiscal year.
NFL Ticket Surcharge – The Amended and Restated Non-Relocation Agreement states that the Team will collect a 10% NFL ticket surcharge on the price of admission to all NFL games on behalf of Stadium Authority.
Non-NFL Event Ticket Surcharge – The Stadium Lease Agreement requires that the promoter or sponsor of any Non-NFL Event collect a Non-NFL Event ticket surcharge of $4 per ticket. The Lease Agreement sets aside one-half of the Non-NFL ticket surcharge for stadium operating and maintenance costs and one-half for discretionary expenses of the Stadium Authority.
Offsite Parking Fees – Parking lot operators who wish to operate a parking lot for sports or entertainment venues are required to go through the City’s permitting process. If approved, per the City’s Municipal Fee Schedule, these operators remit an offsite parking fee for each car that is parked for sports or entertainment events. This fee is designed to recover the public safety costs associated with these permitted offsite parking lots.
Therefore, when invoicing for NFL or Non-NFL public safety costs for a particular event held at Levi’s® Stadium, the offsite parking fee that is collected for said event partly offsets the total public safety costs owed for that event. In the City’s FY 2022/23 (July 1, 2022 through June 30, 2023) the offsite parking fee is $6.13.
Performance-Based Rent – The Amended and Restated Stadium Lease Agreement and the Ground Lease Agreement both describe the performance-based rent that is due to the City. (It is calculated as 50% of the net income from Non-NFL events less performance-based rent credits. The performance-based rent credits include 50% of the fixed ground rent for the current lease year.)
Public Safety Costs – For each NFL and Non-NFL Event held at Levi’s® Stadium, a public safety plan is developed and implemented. Multiple City departments provide staffing, materials, and supplies to support the public safety plan. Services are provided through a combination of City staff, contracts with other agencies (California Highway Patrol, County Sheriff’s Office, and City of Sunnyvale) and some vendor provided services.
The Amended and Restated Stadium Lease Agreement section 7.5 states that the tenant is responsible for reimbursing the City for the public safety costs attributed to NFL events at Levi’s® Stadium. Additionally, Article 5 of the Stadium Management Agreement notes that the Stadium Manager is responsible for paying Non-NFL Event expenses on behalf of the Stadium Authority. Therefore, the cost of providing public safety services are tracked through the City’s financial system and invoices are sent to the Stadium Manager.
All of these costs are reimbursed to the City of Santa Clara. 25 Senior and Youth Program Fees – The Amended and Restated Stadium Lease Agreement requires that StadCo collect a Senior and Youth Program Fee of $0.35 per NFL ticket sold on behalf of the Stadium Authority. Per section 8.2 of the Ground Lease Agreement between the City and the Stadium Authority, the Stadium Authority remits this fee to the City as additional rent to support senior and youth programs in the City.
Stadium Management Fee – The Stadium Manager receives an annual base management fee to manage Levi’s® Stadium. The fee was $400,000 in the first lease year and increases by 3% annually as detailed in the table below. This annual base management fee is split 50/50 between StadCo and the Stadium Authority since the Stadium Manager manages the stadium year-round for both entities. In addition to the base management fee, the Stadium Manager also receives a stadium marketing and booking fee (incentive fee) which is based on a percentage of the amount that the net income from Non-NFL Events exceeds the marketing and booking fee benchmark. The marketing and booking fee benchmark was $5 million in the first lease year and also increases by 3% annually as detailed in the table below. The annual stadium management fee for each of the first ten lease years are noted in Chart 3 below.
Chart 3
Tasman Lots Parking Fees – The City collects a fee of $5 per space for all cars that are parked on the Tasman surface lots during NFL events.
Fiscal
Year
Lease
Year
Annual Base
Stadium
Management Fee
(SCSA Share)
Stadium
Marketing and
Booking Fee
Benchmark
Net Income
from NonNFL Events
Additional
Stadium
Marketing and
Booking Fee
Total Stadium
Management
Fee
2014/15 1 200,000 $ 5,000,000 $ 5,207,553 $ 10,378 $ 210,378 $ 2015/16 2 206,000 5,150,000 6,079,016 46,451 252,451
2016/17 3 212,180 5,304,500 5,316,894 212,800 620
2017/18 4 218,545 5,463,635 5,163,329 218,545 -
2018/19 5 225,102 5,627,544 18,591 225,102 -
2019/20 6 231,855 5,796,370 (2,741,014) 231,855 -
2020/21 7 238,810 5,970,261 (476,960) 238,810 -
2021/22 8 245,975 6,149,369 (288,741) 245,975 -
2022/23 9 253,354 6,333,850
2023/24 10 260,955 6,523,866
City of Santa Clara
Agenda Report
1500 Warburton Avenue
Santa Clara, CA 95050
santaclaraca.gov
@SantaClaraCity
22-1415 Agenda Date: 12/6/2022
REPORT TO STADIUM AUTHORITY BOARD
SUBJECT
Action on the Stadium Manager’s Request to Execute an Amendment to Existing Owner’s Club Stadium Builders License Agreements to Extend the Term by One Year Due to COVID-19 Impacts
BOARD PILLAR
Ensure Compliance with Measure J and Manage Levi’s Stadium
BACKGROUND
As the Stadium Manager, Forty Niners Stadium Management Company, LLC is responsible for making recommendations to the Stadium Authority with respect to marketing, monitoring, and managing Stadium Builder License agreement (SBL) as required by the Management Agreement between the Stadium Authority and Stadium Manager.
The Stadium Authority’s sale of SBLs is a source of revenue for the repayment of debt associated with the construction of the Stadium. The revenue generated by the sale of SBLs are dedicated for this purpose. Generally speaking, and for the vast majority of SBLs, an SBL Licensee (SBL Holder) generally has rights to separately and annually purchase 49ers season tickets for particular seats and priority right to purchase tickets to other non-NFL events at Levi’s Stadium for the “Life of the Stadium”. “Life of the Stadium” is defined in the SBL Agreement as the following: “so long as the Stadium is used for Events/Games; provided, if at some time following the thirtieth anniversary of the date of the first Event/Game, the Stadium undergoes a renovation or rebuilding that costs in excess of $300,000,000, then ‘Life of the Stadium’ shall not include the period from and after such renovation.”
On the other hand, the category of SBL Holders who purchased “Owner’s Club” level SBLs have different contract terms. First, the term of the agreement is limited to 20 years. Second, Owner’s Club SBL Holders paid upfront for their SBL Agreement amenities, which include tickets to Team Games and other ticketed non-NFL events at Levi’s Stadium. This payment is reflected in the price of their SBL. At $250,000 per SBL/per seat, Owner’s Club SBLs are priced significantly higher than the next most expensive category of seats, which are Club Seats priced at $80,000 per SBL/per seat. There is a total of 100 Owner’s Club seats in Levi’s Stadium, all of which have SBLs. A copy of the Owners Club SBL Agreement form is attached to this report for reference (Attachment 1).
During the height of the COVID-19 Pandemic, the State of California and Santa Clara County’s Shelter-in-Place orders, together with restrictions imposed by the NFL, prohibited mass gatherings.
As result, the 49ers team cancelled some games, and played the remainder of the 2020 NFL season without fans in attendance. Owner’s Club SBL Holders, having already paid for tickets to the 2020 NFL games in the cost of their SBL, were uniquely affected by the COVID-19 restrictions.
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22-1415 Agenda Date: 12/6/2022
In July 2020, in anticipation of the impact on the Owner’s Club SBL Holders, the Stadium Manager approached Stadium Authority staff regarding a proposed Amendment to existing Owner’s Club SBL Agreements. However, in August 2020, before any action could be taken on the request, the Stadium Authority was served with a class action lawsuit by an SBL Holder (purportedly on behalf of all SBL Holders, including Owner’s Club Holders) regarding their inability to attend events because of COVID -19 restrictions. As a result, the Stadium Authority could not take action on the Stadium Manager’s request regarding the Owner’s Club SBL Amendment until that litigation was dismissed this summer.
The proposed Amendment to existing Owner’s Club SBL Agreements is attached to this report (Attachment 2).
DISCUSSION
The Stadium Manager’s proposed Amendment to existing Owner’s Club SBL Agreements contains the following changes:
· The term of the Agreement will be extended from 20 years to 21 years; and · SBL Holder acknowledges and agrees that they were not entitled to receive any tickets, benefits, or other rights under their SBL Agreement during the period from April 1, 2020 through March 31, 2021.
Under the proposed Amendment, Owner’s Club SBL Holders will still receive 20 years’ worth of benefits, since during the 2020 season they did not receive the benefit of tickets they had already paid for. The acknowledgement set forth in the second bullet point operates essentially as a waiver of any legal arguments the Owner’s Club SBL Holders may have regarding the missed season.
While there are fiscal impacts associated with the approval of these Amendments, they are difficult to determine. For example, the proposed one-year extension may delay the Stadium Authority’s ability to resell the Owner’s Club SBLs for an additional year. However, the Stadium Authority has not decided how the Owner’s Club SBLs will be resold after the existing Owner’s Club SBL Agreements expire and the terms that would be included in those new SBLs (e.g., term of agreement, cost of SBL, amenities, etc.) so it is unclear what the potential loss of revenue associated with the delay would be. Separately, if the Stadium Authority decides to forego selling SBLs for the Owner’s Club seats after the existing SBL Agreements expire, there may be a year’s worth of revenues from tickets sold for games and events that the Stadium Authority would not receive due to the extension. Similar to the SBL resale scenario, it is unclear what the potential loss of revenue would be in this case, if any.
Based on these considerations, along with the general principle that the Owner’s Club SBL Holders are entitled to the benefits outlined in their SBLs for 20 years, staff recommends approval of the proposed Amendment and authority for the Executive Director and Stadium Manager to execute such Amendments to existing Owner’s Club SBL Agreements to make up for the year that the Owner’s Club SBL Holders did not receive their benefits due to COVID-19 impacts.
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22-1415 Agenda Date: 12/6/2022
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(b)(5) in that it is a governmental organizational or administrative activity that will not result in direct or indirect changes in the environment.
FISCAL IMPACT
As described above, the proposed Amendment to existing Owner’s Club SBL Agreements will have fiscal impacts due to the potential loss of revenue associated with the one-year extension. However, the revenue impacts are unknown at this time.
COORDINATION
This report has been coordinated with the Treasurer and Stadium Authority Counsel’s Offices.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email [email protected] <mailto:[email protected]>.
ALTERNATIVES
1. Approve the Amendment to existing Owner’s Club SBL Agreements;
2. Authorize the Executive Director and Stadium Manager to execute the Amendment to existing Owner’s Club SBL Agreements; or
3. Take no action.
RECOMMENDATION
Alternatives 1 and 2:
1. Approve the Amendment to existing Owner’s Club SBL Agreements; and
2. Authorize the Executive Director and Stadium Manager to execute the Amendment to existing Owner’s Club SBL Agreements.
Prepared by: Christine Jung, Assistant to the Executive Director Approved by: Rajeev Batra, Executive Director
ATTACHMENTS
1. Owner’s Club SBL Agreement Form
2. Proposed Amendment to Existing Owner’s Club SBL Agreements City of Santa Clara Page 3 of 3 Printed on 12/2/2022
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STADIUM BUILDERS LICENSE AGREEMENT
Agreement Date: ____________________
Licensee (Company/Individual): ___________________________________________________________ Phone Nos. (Day) _______________________ (Evening): __________________________________ Contact Person: _______________________ Fax No. ____________________________________ Address: ______________________________ E-Mail Address: ____________________________ ______________________________
______________________________ Account No.: ____________________________ SECTION: ____________________
ROW: ____________________
SEAT(S): ____________________
STADIUM BUILDERS LICENSE: This Stadium Builders License Agreement (the “License Agreement”) sets forth and describes the terms and conditions of one or more Stadium Builders License(s) (or “SBL(s)”) which shall be granted to the Licensee named above (“Licensee”) by the Santa Clara Stadium Authority (the “Stadium Authority” and “Licensor”) upon (i) execution by Legends Sales & Marketing, LLC, the exclusive contractor for the Stadium Authority for the sale of SBLs (“Legends”) and (ii) acceptance and execution of this License Agreement by the Stadium Authority, as described below. Certain capitalized terms used in this License Agreement have the meanings given to those terms in the Terms and Conditions attached hereto as Exhibit C
RIGHTS TO TICKETS: Licensee shall have the rights during the term of this License Agreement (i) to receive 49ers Season Tickets for each Seat described above, (ii) to receive one ticket per SBL for Events which take place in the Stadium and (iii) to those amenities described in
.
Exhibit D, all subject to the Terms and Conditions. For convenience only, and subject to the Terms and Conditions, attached to this License Agreement as Exhibit A LICENSE FEE: For and in consideration of its rights hereunder, Licensee agrees to pay to the order of Legends prior to acceptance hereof by the Stadium Authority, and to the order of the Stadium Authority or the Stadium Authority’s designee, as applicable, following acceptance hereof by the Stadium Authority (any such payee, as the circumstances require, the “Applicable Payee”), a License Fee for each SBL and all amenities attendant thereto (allocated in accordance with the Stadium Authority’s reasonable discretion to the SBL and such amenities) in the amount indicated in is a diagram of the
Stadium with the anticipated location of the Seat(s). Licensee acknowledges that the Stadium is yet to be built and may vary from the attached diagram, and the actual location of the Seat(s) may vary from the section, row and seat number(s) listed above.
Exhibit B
attached hereto. The License Fee shall be paid in one or more installments in accordance with the terms and conditions set forth in Exhibit B
LICENSE AGREEMENT: Licensee acknowledges and agrees to be bound by this License Agreement, including all Exhibits to this License Agreement. In addition, Licensee agrees to observe all rules, regulations, and policies promulgated from time to time and pertaining to use of the Seat(s) and attendance at Team Games and Events, including any modifications thereto that may be adopted from time to time. .
EFFECTIVENESS: When signed by Licensee and Legends, this License Agreement will be a binding obligation of Licensee, enforceable against Licensee in accordance with its terms, and Licensee will have no right to terminate or cancel this License Agreement. Legends is a party to, and has executed, this License Agreement for the limited purpose of acknowledging Licensee’s payment of the License Fee (or, if the License Fee is payable in installments, the portion of the License Fee that is due on or after the Agreement Date, but prior to acceptance by the Stadium Authority) and affirming
Legends’ obligations under this Paragraph. This License Agreement is subject to final approval and acceptance by the Stadium Authority, in its sole discretion. Legends shall not deliver the License Fee (or such portion thereof as Licensee has paid) to the Stadium Authority unless and until the Stadium Authority has accepted and approved this License Agreement and evidenced its acceptance and approval by execution of this License Agreement where indicated below.
From and after execution of this License Agreement by both Licensee and Legends, unless and until this License Agreement is terminated, Legends shall not market or sell to any other party any SBL(s) relating to the Seat(s) referenced above. If the Stadium Authority declines to approve and accept this License Agreement, then this License Agreement shall be deemed terminated and all sums paid by Licensee shall be refunded by Legends to Licensee, without interest.
Upon the final approval and acceptance hereof by the Stadium Authority and Legends’ delivery of the License Fee (or such portion thereof as Licensee has paid) to the Stadium Authority or the Stadium Authority’s designee, as applicable, Legends shall have no further liability or obligations to Licensee hereunder.
EXHIBITS ATTACHED: Exhibit A—Stadium Diagram
Exhibit B—SBL Payment Terms
Exhibit C—Terms and Conditions
Exhibit D—Amenities
LICENSEE:
By:
Name:
Title:
Date:
LEGENDS:
LEGENDS SALES & MARKETING, LLC,
a Delaware limited liability company
By:
Name:
Title:
Date:
STADIUM AUTHORITY
SANTA CLARA STADIUM AUTHORITY,
:
a California Joint Powers Authority
By:
Name:
Title:
Date:
You will receive a countersigned copy of this License Agreement for your records.
Exhibit A
EXHIBIT A
STADIUM DIAGRAM
Exhibit B, Page 1
EXHIBIT B
The total consideration (the “License Fee”) to be paid by Licensee (sometimes also referred to in this Exhibit B as “you” and/or “your”) to the Stadium Authority (sometimes also referred to in this Exhibit B as “Licensor”) or to the Stadium Authority’s designee, as applicable, for the SBL(s) to be granted pursuant to this License Agreement, and the terms of payment thereof, are as follows: Please mark an “X” in the blank space of the selected option. Licensee should then sign and complete the selected option below.
SBL PAYMENT TERMS
____ A. Single Payment
____ B.
: Total License Fee Amount: $250,000.00 submitted to Legends, which Legends acknowledges has been received.
(i) Total License Fee Amount: $250,000.00
Short-Term SBL Payment Schedule:
(ii) Concurrently with Licensee’s execution of this License Agreement, a down payment of:
$125,000.00 (50% of License Fee) submitted to Legends, which Legends acknowledges has been received.
(iii) On January 1, 2014: $125,000.00 (50% of License Fee) Licensee hereby acknowledges and agrees that it has been given the opportunity to purchase the SBL(s) for the immediate payment of the License Fee amount set forth above, and that Licensee has instead agreed to purchase the SBL(s) through installment payments made over time, without the payment of finance charges. Licensee hereby acknowledges that this cash installment payment plan requires the payment for the SBL(s) to be made in three (3) installments, exclusive of
Licensee promises to make the installment payments to the order of the Applicable Payee. Licensee shall make such payments at the address provided by the Applicable Payee. Licensee shall make such payments on or before the dates and in the amounts shown in the above Payment Schedule. Licensee may make any payment early, without penalty.
the down payment amount set forth in B(ii), above, which amount is paid concurrently with the Licensee’s original execution hereof. ____ C. Long-Term SBL Payment Schedule
(i) Total License Fee Amount: $250,000.00
:
(ii) Concurrently with Licensee’s execution of this License Agreement, a down payment of:
$25,000.00 (10% of License Fee) submitted to Legends, which Legends acknowledges has been received.
(iii) On January 1, 2014: $25,000.00 (10% of License Fee) (iv) The balance of $200,000.00 (the “Amount Financed”) to be financed and paid as provided herein below and which shall be subject to finance charges.
Please see below for illustrative consumer disclosures regarding the terms of your payment obligations under this License Agreement.
Exhibit B, Page 2
LICENSE AGREEMENT PAYMENT DISCLOSURE
LICENSOR: Santa Clara Stadium Authority LICENSEE: ___________________ 1500 Warburton Ave. Santa Clara, CA 95050 Address: _______________________ Date that the Amount Financed shall commence being subject to finance charges: March 1 of the first year in which Licensor anticipates that the Team will play regular season Team Games at the Stadium, but not later than March 1, 2015.
ANNUAL
PERCENTAGE
RATE
(The cost of your
credit
as a yearly rate)
FINANCE
CHARGE
(The dollar amount
the
credit will cost you)
Amount Financed
(The amount of
credit provided
to you or on your
behalf)
Total of Payments
(The amount you
will have paid after
you have made all
payments as
scheduled)
Total Sale Price
(The total cost of this
credit purchase,
including your down
payment(s)
of $______________)
________% $________ $________ $________ $________
Your payment schedule will be:
Number of payments Amount of payments When payments are due PREPAYMENT: Licensee has the right to make any payment early. Licensee will not pay a prepayment charge in connection with any prepayment.
ADDITIONAL INFORMATION: Licensee should refer to the other provisions of this License Agreement for information about nonpayment and default and down payment refund policies.
ITEMIZATION OF THE AMOUNT FINANCED
Itemized Charges:
1. Total Cash Price
2. Cash Down Payment
3. Unpaid Balance of Cash Price (Amount Financed)
4. Finance Charge
5. Total of Payments
(-)
(=)
(+)
(=)
$____________________
$____________________
$____________________
$____________________
$____________________
Licensee hereby acknowledges and agrees that it has been given the opportunity to purchase the SBL(s) for the immediate payment of the License Fee amount set forth above and that Licensee has instead agreed to purchase the SBL(s) through installment payments made over time and subject to a finance charge, all as provided herein. The finance charge is computed on a simple-interest basis.
Licensee promises to pay the Total of Payments to the order of the Applicable Payee. Licensee shall make installment payments at the address provided by the Applicable Payee. Licensee shall make such payments on the dates and in the amounts shown in the above Payment Schedule.
If Licensee has selected the credit card method of payment in the down payment form provided in connection with this License Agreement, Licensee hereby authorizes the Applicable Payee to charge the credit card account indicated thereon (or a replacement account, if it is necessary that one be provided by Licensee) on the above dates for the installment payments relating to Licensee’s SBL(s) purchase on each date that payment is due (or, as necessary, on the next succeeding business day).
Exhibit B, Page 3
NOTICE TO LICENSEE:
Do not sign this License Agreement before you read it or if it contains any blank spaces to be filled in. You are entitled to a completely filled-in copy of this License Agreement. You may at any time pay the full remaining portion of the Amount Financed under this License Agreement together with finance charges accrued through the payment date. If you desire to pay off in advance the full remaining portion of the Amount Financed (with accrued finance charges, if any), such outstanding amount will be furnished to you upon your request to the Stadium Authority.
If Licensor does not enforce its rights every time or upon any particular breach or default of this License Agreement, Licensor can still enforce them later. Federal law and California law apply to this License Agreement. Licensee does not have to pay finance charges or other amounts that are more than the law allows.
Any change to this License Agreement must be in writing, and each such writing must be signed by both Licensor and Licensee. Licensor can mail any notice to Licensee at Licensee’s last address in Licensor’s records.
NOTICE:
LICENSOR HAS RESERVED THE RIGHT TO ASSIGN THIS LICENSE AGREEMENT AS DESCRIBED HEREIN. ANY ASSIGNEE/LICENSOR OF THIS LICENSE AGREEMENT IS
SUBJECT TO ALL CLAIMS AND DEFENSES WHICH LICENSEE COULD HAVE ASSERTED AGAINST THE LICENSOR WHICH EFFECTED THE ASSIGNMENT HEREOF.
RECOVERY HEREUNDER BY THE LICENSEE AGAINST AN ASSIGNEE/LICENSOR
SHALL NOT EXCEED THE AMOUNT PAID BY LICENSEE TO SUCH
ASSIGNEE/LICENSOR UNDER THE TERMS OF THIS LICENSE AGREEMENT.
YOU SHOULD KEEP YOUR COPY OF THIS LICENSE AGREEMENT WITH YOUR RECORDS, AS IT SETS FORTH THE TERMS AND CONDITIONS OF THIS TRANSACTION.
Licensee agrees to pay Licensor a reasonable fee of up to $15.00 for each returned check. Licensor can add such fee to the amount(s) Licensee owes under this License Agreement or collect such fee separately. If Licensee has chosen to make payments for the SBL(s) using a credit card, Licensee promises to provide updated credit card account information to the Applicable Payee should Licensee’s credit card account cease to be valid after the Agreement Date.
Licensee acknowledges and agrees that any failure to comply with the terms of this License Agreement, including the failure to make any payment in accordance with the applicable Payment Schedule, may constitute a default under the terms of this License Agreement. Upon Licensee’s default, Legends and/or the Stadium Authority shall have all rights and remedies set forth in the Terms and Conditions, including but not limited to the termination of the SBL(s). Upon termination of the SBL(s) for Licensee’s default hereunder, no amount(s) paid by Licensee hereunder shall be refundable or payable to Licensee.
Any subsequent sale by Licensor of an SBL(s) associated with the Seat(s) identified in this License Agreement following the termination hereof is not a resale of such SBL(s), but is instead the creation of one or more new SBLs for the benefit of a different licensee.
The undersigned Licensee hereby acknowledges that before signing this License Agreement, Licensee has received a legible, completely filled-in copy of this License Agreement and Licensee has read it in its entirety. ___________________________________________ ______________________________ Licensee’s Signature Date
Exhibit C, Page 1
EXHIBIT C
1. TERMS AND CONDITIONS
DEFINED TERMS
(a) “49ers Season Ticket(s)” means season tickets for each Seat for all Team Games to be played in the Stadium in a particular annual NFL season. Tickets for Team Games that are postseason NFL playoff games may be distributed separately, subject to separate pricing and time constraints, but are considered a part of the 49ers Season Ticket(s).
. Certain capitalized terms used in this License Agreement shall have the meanings set forth below. Additional terms are defined elsewhere in this License Agreement. (b) “Agreement Date” means the date on which this License Agreement has been signed by Licensee and Legends, as set forth on the first page of this License Agreement. (c) “Comparable Seat(s)” shall have the meaning set forth in Section 5(c) of this Exhibit C. (d) “Event(s)” means concerts, sporting events and similar types of stadium functions to which tickets will be made available to the general public, excluding Team Games and other NFL games. The term “Events” does not include private parties and corporate or other functions that are not available to the general public.
(e) “Event/Game” means any Event held or Team Game played at the Stadium. (f) “Event Organizer(s)” means the sponsor of an Event at the Stadium that has the right to sell tickets to an Event pursuant to a contract directly or indirectly with the Stadium Authority. If the Stadium Authority itself sells tickets to an Event, the Stadium Authority will be considered the Event Organizer for that particular Event.
(g) “Legends” means Legends Sales & Marketing, LLC, acting as exclusive contractor for the Stadium Authority for the sale of SBLs.
(h) “License Agreement” means this Stadium Builders License Agreement and all of the Exhibits attached hereto.
(i) “Licensee’s Guests” means all persons permitted by Licensee (whether by Licensee’s express permission, acquiescence, or otherwise) to use tickets to any Event/Game which Licensee has the right to purchase under this License Agreement.
(j) “NFL” means the National Football League.
(k) “SBL” means the rights of the Licensee under this License Agreement. (l) “Seat(s)” means the seat or seats associated with the SBL(s), as indicated on the first page of this License Agreement, subject to relocation to Comparable Seat(s) as provided herein; upon such relocation the Comparable Seat(s) shall be, in all respects, the “Seat(s)” associated with the SBL(s) under this License Agreement.
(m) “Stadium” means the stadium to be located in Santa Clara, California, and owned by the Stadium Authority.
(n) “Stadium Authority” means the Santa Clara Stadium Authority, a California joint powers authority. (o) “Team” means, as the circumstances may require, the entity that is the owner and operator of the San Francisco 49ers professional football team and/or such professional football team. (p) “Team Game(s)” means any preseason or regular season NFL games or postseason NFL playoff games (excluding Super Bowl games) played by the Team in the Stadium, in which the Team is Exhibit C, Page 2
designated as the home team by the NFL. The term “Team Game(s)” does not include any games played by the Team that are designated by the NFL as a Team home game but that are scheduled to be played at a location other than the Stadium, including, by way of example, games scheduled to be played in a foreign country.
(q) “Term” means the period beginning on the date the Stadium first opens and ending on July 31 twenty (20) years after the date the Stadium first opens (anticipated to be 2014 in which case the Term would expire on July 31, 2034), or, if this Agreement is signed after the date the Stadium first opens, then the Term shall begin on the date the Agreement is signed by the Licensee and end at the expiration of twenty (20) years after such date.
2. GRANT OF SBL; TERM
3. . For and in consideration of the payment of the License Fee, Licensee will receive the number of SBL(s) set forth in this License Agreement, each of which shall entitle Licensee to tickets to Events held in the Stadium and 49ers Season Tickets, as provided in Section 4 of this Exhibit C and otherwise in accordance with the terms and conditions set forth in this License Agreement. Each SBL shall, subject to earlier termination as provided herein, remain in effect for the Term. If, after the expiration of the Term, the Stadium Authority sells new stadium builders’ licenses or seat licenses of any kind that would entitle the holder to (i) purchase season tickets to the Seats for Team Games and (ii) priority to purchase tickets for other Events, then the Stadium Authority shall offer you the first right to purchase such licenses for the Seats, or if a renovation results in a different configuration, then the Stadium Authority shall use reasonable efforts to offer you licenses for comparable seats. This License Agreement gives Licensee rights of personal privilege only and does not under any circumstance give or grant to Licensee any leasehold, title, interest or other rights of any kind in any specific real or personal property.
SBL PAYMENTS
4. . Unless and until the Stadium Authority has accepted and approved this License Agreement, all License Fees shall be deposited and held by Legends in a segregated account containing only License Fees.
Upon final approval and acceptance of this License Agreement by the Stadium Authority, the License Fees will be remitted by Legends as directed by the Stadium Authority and thereafter may be used by the Stadium Authority as it determines, but only in connection with the development, construction and operation of the Stadium, except and only to the extent that amounts are required to be spent on the acquisition of amenities to be provided under this License Agreement.
LICENSEE RIGHTS AND OBLIGATIONS
(a)
.
49ers Season Tickets
(b)
. Except as provided herein, Licensee will have the right to 49ers Season Tickets for the Seat or Seats.
Events
Except as expressly provided in this paragraph or in Exhibit D to this License Agreement, the SBL(s) do not include the right to tickets or season tickets to any NFL games other than Team Games, or to the games of any other established amateur or professional sports (including NFL) team which may in the future use the Stadium as its home stadium or to any Olympic events that may take place at the Stadium. The Stadium Authority (or its agent, an affiliate or a successor) may sell seat licenses for the opportunity to buy tickets (including season tickets) to such additional team’s (or teams’) home games at the Stadium, and tickets (including season tickets) for such games may be sold without seat licenses.
In either case, Licensee will have an opportunity to purchase those licenses and/or tickets (as applicable) after a team’s existing season ticket holders and waitlist members, and the residents of the City of Santa Clara, have had an opportunity to purchase such licenses and/or tickets, but before such licenses and/or tickets are otherwise offered for sale to the general public. . Licensee will have a priority right to one ticket per SBL for each Event at the Stadium before such tickets are marketed and sold by the Event Organizer to the general public. Stadium seating is subject to re-configuration for different Events, and an Event Organizer may offer fewer tickets to a particular Event than there are SBLs. Therefore, Licensee does not have the right to tickets for the Seat(s) or any particular seats in the Stadium.
(c) Rights Under License. The limited rights granted to Licensee under this License Agreement include a right to tickets as described herein. The SBL(s) does not entitle Licensee toan equity or ownership interest in the Stadium or any part thereof.
Exhibit C, Page 3
(d) Transfers
(i) A “Permitted Transfer” is any of the following, provided, that the prospective transferee has never been barred from entering, or removed from, the Stadium or any other stadium, ballpark or arena venue:
. Except for a Permitted Transfer, Licensee may not assign, sell, sublease, pledge, mortgage or otherwise transfer (a “Transfer”) any SBL without the prior written consent of the Stadium Authority, which approval will not be unreasonably withheld.
(1) A Transfer required due to an occurrence of a circumstance beyond the control of Licensee, such as death or disability or similar event as determined by the Stadium Authority;
(2) In the case of Licensees that are natural persons, a Transfer to a grandparent, parent, stepparent, spouse (including to an ex-spouse in connection with a divorce), registered domestic partner (including to an ex-partner in connection with a termination of the domestic partnership), sibling, child, stepchild, grandchild, or great grandchild; or
(3) In the case of Licensees that are entities, a Transfer to (A) an entity resulting from a merger or consolidation with Licensee, (B) an entity succeeding to all or substantially all of the business or assets of Licensee, or (C) an entity controlled by, controlling, or under common control with Licensee.
(ii) Attempted Transfer Without Consent; Frequency of Transfers (iii)
. Any attempted Transfer
without the consent of the Stadium Authority, other than a Permitted Transfer, will give the Stadium Authority the right, at its sole option, to terminate this License Agreement. If the Stadium Authority terminates this License Agreement, the Stadium Authority may sell a new SBL(s) associated with the Seat(s) on terms and conditions established by the Stadium Authority in its sole discretion and without any compensation to Licensee. Licensee acknowledges and agrees that any subsequent sale by Licensor of an SBL(s) associated with the Seat(s) identified in this License Agreement following the termination hereof is not a resale of such SBL(s), but is instead the creation of one or more new SBLs for the benefit of a different licensee. If the Stadium Authority does not exercise its right to terminate the SBL(s), the Stadium Authority may elect to record the Transfer of the SBL(s) to the intended transferee upon receipt of the applicable transfer fee and acceptance of the executed transfer form required by the Stadium Authority. It shall not be unreasonable for the Stadium Authority to withhold approval of any proposed transfer prior to the first Event/Game held at the Stadium or if the SBL has been previously transferred in the same calendar year, unless such Transfer is a Permitted Transfer.
Completion of a Transfer. No Transfer of any SBL, including any Permitted Transfer, will be complete or recognized by the Stadium Authority if Licensee is in default of the terms of this License Agreement nor until (1) Licensee and Licensee’s prospective transferee have applied to the Stadium Authority for the Transfer of the SBL(s) on the form required by the Stadium Authority; (2) Licensee or Licensee’s prospective transferee has paid to the Stadium Authority the applicable transfer fee established by the Stadium Authority, provided that, for the first five years of the Stadium the transfer fee shall not exceed $100.00 per transferred SBL; (3) Licensee has performed all obligations (including, but not limited to, payment obligations) under the SBL(s) that have previously accrued, unless the Stadium Authority has permitted the assignment of all such Licensee obligations to the transferee; and (4) the Stadium Authority has recorded the Transfer of the SBL(s) on the records maintained by the Stadium Authority for those purposes. The form of application required by the Stadium Authority will contain the prospective transferee’s agreement to assume and perform the obligations of Licensee under this License Agreement accruing on and after the date of the Transfer. No Transfer (including a Permitted Transfer) of the SBL(s) will release Licensee from Licensee’s obligations under this License Agreement unless the Stadium Authority expressly releases Licensee in writing, which release will not be unreasonably withheld. Once Licensee completes the Transfer of its SBL(s), Licensee will no longer have any rights under this License Agreement.
Exhibit C, Page 4
5. RIGHTS RESERVED BY LICENSOR
(a) The right to exercise all rights at law or in equity, or as granted under this License Agreement, including those rights in connection with a default by Licensee hereunder, which rights expressly include the termination of this License Agreement.
. The Stadium Authority expressly reserves the following rights:
(b) The right to check Licensee’s creditworthiness in connection with the SBL(s) and this License Agreement; Licensee hereby authorizes the Stadium Authority and its contractors, agents, designees, successors and assigns to access Licensee’s credit reports at any time during the period commencing on the Agreement Date and ending on the date that no amount of the License Fee (including applicable finance charges, if any) remains outstanding.
(c) The right to improve, alter, restore, expand, or enlarge the Stadium, any amenity area, any seating area or any other portion of the Stadium, as determined by the Stadium Authority in its sole discretion. If, in connection with any such action, the Stadium Authority relocates or reconfigures the Stadium seating or any amenity area(s), the Stadium Authority reserves the right to re-designate the specific locations of seats and to modify the assignment of specific seats to SBLs. If the Stadium Authority determines that any such modification is necessary, the Stadium Authority will endeavor to assign to an affected SBL a seat that is comparable to, in terms of field vantage point and access to amenities, the seat that was assigned to the SBL prior to the relocation or reconfiguration, all as determined by the Stadium Authority in its sole discretion and without regard to the original License Fee amount (each such Seat, a “Comparable Seat”). In the event the Stadium Authority notifies Licensee that there is no Comparable Seat(s), then Licensee shall have the right to terminate this License Agreement upon notice to the Stadium Authority, in which event the Stadium Authority shall, within sixty (60) days following such notice of termination, return to Licensee the Unamortized Portion of the License Fee. For purposes of this License Agreement, an SBL will be assumed to have a life of twenty (20) years and the applicable amortization will be straight-line (e.g., if an SBL is paid in full and is terminated after three (3) years, the Licensee would receive a refund in the amount of $212,500; such amount, the “Unamortized Portion of the License Fee”).
(d) The right to assign, pledge as collateral, encumber, transfer, sell, or lease all or any part of the Stadium Authority’s right, title, or interest in and to the Stadium and its appurtenant facilities. (e) The right to assign, pledge as collateral, mortgage, encumber, transfer, or sell all or any part of the rights and obligations of the Stadium Authority and of Licensee under this License Agreement to one or more third parties, who may succeed to all or any part of the rights of the Stadium Authority under this License Agreement.
6. USE OF STADIUM AND SEAT(S)
(a) bring into the Stadium any alcoholic or intoxicating beverage, any illegal drug, or, except as prescribed to the treated person by a physician, any controlled substance; . Licensee will have access to the Stadium and, if applicable, the Seat(s), only upon presentation of a ticket(s) for admission to any Event/Game. Licensee and Licensee’s Guests will be bound by and must observe the terms and conditions upon which tickets for admission to the Stadium have been issued, including but not limited to any policy adopted with respect to the cancellation, re-scheduling, or postponement of Team Games or Events. In addition, Licensee and Licensee’s Guests must at all times maintain proper decorum while using the Seat(s) and in and about the Stadium and must abide by the applicable governmental regulations, laws, ordinances, rules, and regulations and by the policies, rules, and regulations that may be adopted from time to time by the Stadium Authority, the Team, Event Organizers and their respective representatives, agents, tenants, subtenants, employees, corporate affiliates and contractors (collectively, “Stadium Parties”) pertaining to the Stadium. Licensee acknowledges that the Team and Event Organizers may adopt policies, rules, and regulations independently from the Stadium Authority relating to Licensee’s attendance at Team Games and Events and that a violation of any of such policies, rules, and regulations may, in the discretion of the Stadium Authority, also constitute a violation of this License Agreement. Licensee will be responsible for any violations of this License Agreement by Licensee’s Guests. Licensee and Licensee’s Guests may be required, as a condition to entry into the Stadium, to submit to a search for prohibited items. Without limiting the foregoing, Licensee specifically agrees that neither it nor any of Licensee’s Guests will:
Exhibit C, Page 5
(b) permit the Seat(s) or any seat or area of the Stadium to be used for any illegal, improper, immoral, or objectionable purpose, or unduly disturb, obstruct, or interfere with the rights of any other licensees or ticket holders;
(c) film or record for transmission, or transmit from the Seat(s) or the Stadium all or any portion of any Event/Game, or any description thereof, by any means (including, but not limited to, radio, television, or internet broadcasting, whether distributed live or by means of film, tape, digital, streaming, or other technology); or
(d) tolerate or permit the use of the Seat(s) in violation of this License Agreement, including this Exhibit C
7. ,
or create any nuisance or take any action that either diminishes hazard insurance coverage for the Stadium or increases the premium payable for that insurance.
DEFAULT
(a) withhold distribution of tickets to Licensee, authorize the Team or other Event Organizers to withhold distribution of tickets to Licensee, or otherwise deny Licensee access to the Stadium for Events/Games until the default is cured (if such default is curable); and/or . If Licensee fails to pay when due any License Fee or portion thereof, or any finance charge thereon, under this License Agreement, or otherwise defaults in the performance of any of Licensee’s duties and obligations under this License Agreement, then the Stadium Authority may, at its option, after providing written notice to Licensee and a ten (10) day opportunity to cure (if such default is curable):
(b) terminate all rights of Licensee under this License Agreement.
Notwithstanding the foregoing, Licensee acknowledges and agrees that the failure to maintain proper decorum and abide by the policies, rules, and regulations that may be adopted from time to time by the NFL, the Stadium Authority, the Team and Event Organizers are non-curable defaults, and the Stadium Authority’s notice is for the sole purpose of notifying Licensee of such breach and termination.
Licensee acknowledges and agrees that upon Licensee's default under this License Agreement and the termination of the SBL(s) by the Stadium Authority, no amount(s) paid by Licensee hereunder shall be refundable or payable to Licensee. If the Stadium Authority, the Team or any Event Organizer withholds the distribution of tickets for any Event/Game due to a default of Licensee, the Stadium Authority, the Team or the Event Organizer may release, reissue, sell, give, use for its own use, or otherwise transfer the tickets for such Event/Game on terms and conditions established by the Stadium Authority, the Team or any Event Organizer (as the case may be) in its sole discretion, without any compensation to Licensee. After termination of Licensee’s SBL(s), the Stadium Authority will thereafter, at any time, have the right to sell one or more new SBL(s) for the related Seat(s) to any other person or party with no further obligation or liability to Licensee whatsoever.
The foregoing remedies are not to the exclusion of any other right or remedy of the Stadium Authority set forth in this License Agreement or otherwise available at law or in equity. Licensee is responsible for all attorneys’ fees and costs incurred by the Stadium Authority in the enforcement of this License Agreement, whether or not litigation is actually commenced.
No waiver by the Stadium Authority of any default or breach by Licensee of its obligations under this License Agreement will be construed to be a waiver or release of any other subsequent default or breach by Licensee under this License Agreement, and no failure or delay by the Stadium Authority in the exercise of any remedy provided for in this License Agreement will be construed a forfeiture or waiver thereof or of any other right or remedy available to the Stadium Authority.
8. STRIKES, DAMAGES, DESTRUCTION, ETC
(a) In the event of any damage to or destruction of the Stadium due to an act of God, natural disaster, contamination, act of terrorism or other force majeure, Licensor shall have no obligation hereunder to repair such damage or rebuild the Stadium. If Licensor elects not to repair the damage or rebuild the Stadium, and the Stadium is no longer used for Events/Games, this License Agreement shall terminate as of the date of such damage or destruction, no portion of the License Fee will be returned to Licensee, and Licensor shall have no further liability under this License Agreement. .
Exhibit C, Page 6
(b) In the event of any damage to or destruction of the Seat(s) due to an act of God, natural disaster, contamination, act of terrorism or other force majeure that renders the Seat(s) unusable, and Licensor is unable to repair or replace the Seat(s) in a reasonable period of time, Licensor shall endeavor to provide Licensee a Comparable Seat(s) until the Seat(s) is repaired or replaced. (c) Licensor will not be liable for, and Licensee will not assert any deduction, set off or claim of any nature against Licensor for, any act or omission of or any breach or default by any Stadium Party or concessionaire. Licensee will be bound by the terms and conditions established from time to time by each Stadium Party for cancellation or postponement of any Event/Game. Licensor will have no responsibility or liability to Licensee on account of any cancellation or postponement or other failure or deficiency in the conduct of any Event/Game, including but not limited to any cancellation on account of any strike or other labor disturbance or any condition in or around the Stadium. Neither the Team nor the Event Sponsor will have any liability on account thereof
9. ASSUMPTION OF RISK; INDEMNIFICATION
(a) Neither the Stadium Parties nor Legends nor their respective officers, owners, directors, employees, and agents (collectively, the “Indemnitees”) will be liable to Licensee or responsible for, and Licensee for itself and each of Licensee’s Guests assumes, all risk for any loss, damage, or injury to any person or to any property of Licensee or Licensee’s Guests in or around the Stadium (including the parking lots) arising out of, during, or related to their attendance at any Event/Game at the Stadium resulting from any cause whatsoever, including, but not limited to, theft and vandalism, incidents involving other patrons, the consumption of alcoholic beverages by other patrons, injury from thrown or dropped objects, and spills of food or beverages, regardless of whether the personal injury or property damage was caused by or results from, in whole or in part, the negligence or other fault of any Indemnitee, whether sole, joint, active or passive, excepting only those damages, costs or expenses attributable (and only to the extent attributable) to the gross negligence or willful misconduct of an Indemnitee, and then only with respect to such Indemnitee. Licensee hereby agrees to assume all responsibility and liability for the consumption of alcoholic beverages by Licensee and Licensee’s Guests at the Stadium, and for the conduct and behavior of Licensee and Licensee’s Guests. .
(b) LICENSEE AGREES TO RELEASE, DEFEND, INDEMNIFY, AND HOLD HARMLESS THE INDEMNITEES FROM
AND AGAINST ANY LIABILITY, LOSSES, CLAIMS, DEMANDS, COSTS, AND EXPENSES, INCLUDING ATTORNEYS’ FEES AND LITIGATION EXPENSES, ARISING OUT OF OR RELATED TO (I) ANY VIOLATION OF
THIS LICENSE AGREEMENT OR OF ANY APPLICABLE LAWS, RULES, REGULATIONS OR ORDERS, (II) THE
USE OF ALCOHOL IN OR AROUND THE STADIUM (INCLUDING THE PARKING LOTS) BY LICENSEE OR ANY OF LICENSEE’S GUESTS, (III) THE CONDUCT OR BEHAVIOR OF LICENSEE AND LICENSEE’S GUESTS,
AND/OR THE USE OF THE SEATS OR THE STADIUM (INCLUDING THE PARKING LOTS) BY LICENSEE OR LICENSEE’S GUESTS, AND (IV) ANY PERSONAL INJURY OR PROPERTY DAMAGE OCCURRING IN OR AROUND THE STADIUM (INCLUDING THE PARKING LOTS) IN CONNECTION WITH LICENSEE’S OR LICENSEE’S GUESTS’ USE OF THE STADIUM (INCLUDING THE PARKING LOTS) OR OCCUPANCY OF THE
SEAT(S), REGARDLESS OF WHETHER THE PERSONAL INJURY OR PROPERTY DAMAGE WAS CAUSED BY
OR RESULTS FROM, IN WHOLE OR IN PART, THE NEGLIGENCE OR OTHER FAULT OF ANY INDEMNITEE,
WHETHER SOLE, JOINT, ACTIVE OR PASSIVE
(c) Licensee acknowledges that, although none of the Indemnitees (other than Legends for the limited period and purposes described herein and the Stadium Authority after acceptance) is a party to this License Agreement, each such Indemnitee is an express third-party beneficiary of this Section 9 of Exhibit C of this License Agreement and will directly or indirectly receive the benefit of, and may enforce as if a party to this License Agreement, the provisions of this Section 9 of Exhibit C. , EXCEPTING FROM THIS INDEMNITY ONLY THOSE
DAMAGES, COSTS OR EXPENSES ATTRIBUTABLE (AND ONLY TO THE EXTENT ATTRIBUTABLE) TO THE
GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF AN INDEMNITEE AND ONLY WITH RESPECT TO SUCH INDEMNITEE.
10. CONSTRUCTION OF THE STADIUM
(a) Licensor expects that construction of the Stadium will be completed prior to the 2015 NFL pre-season.
If construction of the Stadium has not commenced (i.e., commencement of work on the foundation or pile supports) by December 31, 2015, at the option of Licensee, Licensee may request a return of the amount(s) of the License Fee theretofore paid. In such event, Licensor shall, as soon as reasonably .
Exhibit C, Page 7
practicable thereafter, return to Licensee all paid amounts of the License Fee, and no interest will be paid on any returned License Fee amounts. Upon return of such paid portion of the License Fee to Licensee, this License Agreement will terminate and the parties will have no further liability or obligation to each other under the terms of this License Agreement or in law or equity. If (i) the Seat(s) which is the subject of this License Agreement is not included in the Stadium, (ii) the Seat(s) is not available for licensing, or (iii) before the first Event/Game, the Stadium Authority abandons its efforts to develop the Stadium, then the Stadium Authority will notify Licensee thereof, and by that notice will terminate this License Agreement. As soon as is reasonably practical thereafter, the Stadium Authority will refund the License Fee, or such portion thereof as Licensee has then paid, and no interest will be paid on any returned License Fee amounts. Upon return of such paid amount of the License Fee to Licensee, the parties will have no further liability or obligation to each other under the terms of this License Agreement or in law or equity. Except as expressly provided under this License Agreement, in no event shall the Licensee be entitled to any refund of all or any portion of the License Fee after the first Event/Game held at the Stadium. The right of refund to Licensee set forth in this Section 10(a) is Licensee’s sole and exclusive remedy for the failure to commence construction of the Stadium as against the Stadium Authority and the other Stadium Parties. (b) In connection with (and after) the initial construction of the Stadium, the Stadium Authority reserves the right, in the case of construction or design necessity, any Federal, State or local law, ordinance or regulation, NFL regulation or directive, damage or destruction (whether whole or partial), renovation, reconstruction or obsolescence, to alter or change the design or configuration of the Stadium, including any change in the location of each of the Seat(s), which changes may affect the original association of the Seat(s) with the SBL(s). Licensee acknowledges and agrees that, in the event of any change or alteration of seat locations within the Stadium, the Stadium Authority may, in its discretion, provide Licensee with a Comparable Seat(s).
11. REPRESENTATIONS AND AGREEMENTS OF LICENSEE
(a) Licensee has read and understands the terms of this License Agreement and all Exhibits to this License Agreement, including this
. Licensee hereby acknowledges, agrees,
represents and warrants as follows:
Exhibit C
(b) Licensee is not acquiring any SBL as an investment and has no expectation of profit as an owner of the SBL.
.
(c) Licensee is acquiring the SBL(s) solely for the right to attend Events/Games as provided in this License Agreement and to enjoy the Stadium amenities provided by the Stadium Authority. (d) Licensee is acquiring the SBL(s) for its own use and not with a view to the distribution, transfer, or resale of the SBL(s) to others.
(e) The rights licensed under this License Agreement are rights of personal privilege and do not under any circumstances confer upon Licensee any interest or estate in real property or any leasehold or possessory interest in the Seat(s) or the Stadium.
(f) Licensee will not have any equity or other ownership interest in the Stadium Authority or the Stadium or any of the Stadium’s facilities and will not have any rights to dividends or other distribution rights from the Stadium Authority or any other party or entity described in this License Agreement as a result of being a licensee of an SBL, and further will not have any voting rights with respect to any Stadium Authority matters as a result of being a licensee of an SBL. (g) Licensee acknowledges that the transfer of an SBL is restricted and that an SBL is subject to termination under certain conditions, including those described in this License Agreement. (h) Licensee acknowledges that all or a portion of the License Fee(s) will be expended by the Stadium Authority during the construction period for the Stadium, together with other funds of, or available to, the Stadium Authority for such purpose, to pay for the construction, development and operation of the Stadium and will not be used for any investment purpose whatsoever (except temporary investment of proceeds during such construction period pending expenditure for such construction).
Exhibit C, Page 8
(i) Licensee acknowledges that neither Legends nor the Stadium Authority nor any other party has made any representations, warranties, or covenants other than as set forth in this License Agreement. (j) Licensee acknowledges that in the event that the Stadium is not built or completed as anticipated, or if no Event/Game is ever held in the Stadium for any reason, neither Legends nor the Stadium Authority shall have any liability whatsoever, other than the Stadium Authority’s obligation to refund to Licensee any portion of the License Fee(s) that has been previously paid by Licensee, as and to the extent otherwise expressly provided in this License Agreement. (k) Licensee acknowledges that this License Agreement may be subject to disclosure as a public record. (l) Licensee has full authority and capacity to enter into and sign this License Agreement and carry out its terms and conditions, and, when signed by Licensee, this License Agreement will be a binding obligation of Licensee, enforceable against Licensee in accordance with its terms.
12. MISCELLANEOUS
(a) All notices, demands and other communications between the parties required or appropriate under this License Agreement must be in writing and will be deemed given to: (i) Licensee, if mailed, postage prepaid, to the addresses set forth for Licensee in this License Agreement, or to another address as may be designated by Licensee to the Stadium Authority, from time to time, as provided in this Section 12(a), or if sent by electronic mail in the event Licensee has consented to such method of delivery, and (ii) the Stadium Authority (or, prior to final approval and acceptance by the Stadium Authority, Legends), if mailed, by certified or registered mail, postage prepaid, return receipt requested to the addresses set forth for the Stadium Authority (or, to the extent applicable, Legends) in this License Agreement, or to another address as may be designated by the Stadium Authority to Licensee, from time to time, in writing. The initial mailing address of the Stadium Authority is as follows: Santa Clara Stadium Authority, 1500 Warburton Ave. Santa Clara, CA 95050. .
(b) Licensee acknowledges and agrees that upon any assignment of this License Agreement by the Stadium Authority (other than for the benefit of a secured party solely in connection with a financing and prior to any foreclosure upon the assignee/secured party’s interest herein as a result of an uncured default of the Stadium Authority thereunder), the Stadium Authority will be automatically and fully released from, and the Stadium Authority’s assignee will be responsible for, all obligations and liabilities of the Stadium Authority under this License Agreement.
(c) THIS LICENSE AGREEMENT WILL BE CONSTRUED AND ENFORCED IN ACCORDANCE
WITH ALL APPLICABLE FEDERAL LAWS AND THE LAWS OF THE STATE OF CALIFORNIA
AND CALLS FOR PERFORMANCE IN SANTA CLARA COUNTY, CALIFORNIA, AND
JURISDICTION AND VENUE FOR ANY DISPUTES ARISING OUT OF OR RELATED TO THIS
LICENSE AGREEMENT WILL EXCLUSIVELY LIE IN THE FEDERAL AND STATE COURTS
LOCATED IN SANTA CLARA COUNTY, CALIFORNIA, WITHOUT REGARD TO ANY OTHER APPLICABLE PRINCIPLES OF CONFLICT OF LAWS.
(d) This License Agreement, and all the terms and provisions hereof, inure to the benefit of and are binding upon the parties to this License Agreement and, subject to the provisions of Section 4(d) of this Exhibit C, their respective heirs, executors, administrators, personal representatives, successors, and permitted assigns. No amendment or modification to this License Agreement will be effective unless it is in writing and signed by both the Stadium Authority and Licensee. (e) Licensee agrees to pay all taxes associated with entering into this License Agreement and holding the SBL(s) and the underlying tickets (including, but not limited to, any admissions taxes), whether presently imposed or imposed in the future by any taxing authority. (f) The Stadium Authority and Licensee agree that they may rely upon an electronic copy of this License Agreement executed by the other. In that regard, and in order to facilitate execution hereof, this License Agreement may be executed in one or more counterparts as may be convenient or required, and an executed copy of this License Agreement delivered by facsimile or electronic mail transmittal or by other electronic communication will have the effect of an original, executed instrument. All counterparts of this License Agreement will collectively constitute a single instrument; but, in making proof of this License Agreement, it will not be necessary to produce or account for more than one Exhibit C, Page 9
counterpart hereof. Each signature page to any counterpart of this License Agreement may be detached from the counterpart without impairing the legal effect of the signatures thereon and thereafter attached to another counterpart of this License Agreement identical thereto except having attached to it additional signature pages.
(g) If any provision or provisions, or if any portion of any provision or provisions, in this License Agreement is or are ultimately determined by a court of law to be in violation of any local, state or federal law, or public policy, and if such court shall declare such portion, provision or provisions of this License Agreement to be illegal, invalid, unlawful, void or unenforceable as written, then it is the intent both of the Stadium Authority and Licensee that such portion, provision or provisions shall be given force to the fullest possible extent that they are legal, valid and enforceable, that the remainder of this License Agreement shall be construed as if such illegal, invalid, unlawful, void or unenforceable portion, provision or provisions were not contained herein, and that the rights, obligations and interests of the Stadium Authority and Licensee under the remainder of this License Agreement shall continue in full force and effect, unless the amount of the License Fee or other charges payable hereunder is thereby decreased, in which event the Stadium Authority may terminate this License Agreement. (h) This License Agreement, including these Terms and Conditions and the other Exhibits attached and incorporated thereto and hereto, contains the entire agreement of the parties with respect to the matters provided for therein and herein, and supersedes any written instrument or oral agreement previously made or entered into by the parties to this License Agreement or any SBL plan offered by the Stadium Authority and/or its agents, specifically including, but not limited to, any advertising, visual presentations, marketing materials, brochures, order forms, and surveys distributed (in any form) by the Stadium Authority and/or its agents.
_______________ ___________
Licensee’s Initials Date
Exhibit C, Page 10
AFFIRMATIVE CONSENT TO RECEIVE ELECTRONIC COMMUNICATIONS
CONCERNING YOUR STADIUM BUILDER LICENSE(S)
The Licensee executing this consent in the space below (“You”) acknowledges that any of the Stadium Parties (collectively, “We” or “Us”) may want to contact You regarding the SBL(s) or notify You of conditions, events and promotions relating to the Stadium. Our contact with You may involve sending You e-mails or other electronic communications. In order to ensure that We have obtained Your affirmative consent to receive these communications, You agree as follows:
1. You agree that We can send e-mail and other electronic communications to You at the e-mail address set forth below. You agree to promptly inform Us of any change to Your e-mail address or other addresses. You agree that We can rely upon the information concerning the electronic addresses You have provided to Us.
2. We may send communications to You concerning the following subjects:
a. Changes in the times or other details of any Team Games or Events; b. Security procedures and policies, and any security alerts; c. Parking, traffic, or other transportation issues relating to the Stadium; d. Special Events (such as concerts and sporting events) scheduled at the Stadium; e. Information relating to the SBL(s), such as special offers, including any right to purchase additional tickets to Events;
f. Offers for affiliated products and services; and
g. Other special circumstances in which We may need to contact You.
We will use commercially reasonable efforts to provide accurate information to You and to ensure that the information is delivered to You. However, We cannot guarantee that all communications are error-free or that the messages will in fact be delivered.
3. You may revoke Your agreement to receive e-mail and other electronic communications from Us by making a request, either by using the unsubscribe function in the message You receive from Us or by advising SCSA in writing at the address provided in this License Agreement (or such updated address as the Stadium Authority shall provide from time to time). Note that if You revoke your authorization, You may not receive important information from Us concerning the SBL(s).
4. This consent does not change any other agreement between You and the Stadium Parties.
Agreed to:
By: ___________________________
Name: _________________________
Email Address: _______________________
Exhibit D
AMENITIES – OWNERS CLUB SEATS
EXHIBIT D
• Cushioned seats that are roomier than general admission seats. • Access to Owner’s Club for all Team Games and all ticketed non-NFL events held in the Stadium. This private, exclusive club will include a complimentary buffet, beer, wine, soda and non-premium alcohol at all Team Games.
• Access to Loft Club and East Field Club.
• If four (4) or more SBLs are purchased, then one complimentary reserved VIP parking space in a preferred parking lot in the vicinity of the Stadium for each Team Game per each four (4) SBLs purchased pursuant to this Agreement. The location of the VIP parking is subject to change from time to time. Licensee may also be entitled to purchase parking passes for other Stadium Events for which it has received admission tickets, as determined by the Event Sponsor.
• One (1) complimentary 49ers Season Ticket per SBL at the Seat location. • One (1) complimentary ticket per SBL to all other Events during the Term, including any Super Bowl played in the Stadium (excluding tickets or season tickets to any NFL games other than Team Games, or to the games of any other established amateur or professional sports (including NFL) team which may in the future use the Stadium as its home stadium or to any Olympic events that may take place at the Stadium). The location of seating for other events will be determined by the Event Organizer, and Licensor will use reasonable efforts to obtain the Seat location, to the extent consistent with the staging of a particular Event. • Once every five (5) seasons, Licensee and one (1) guest (total of two (2) people) will have the opportunity to travel to a Team away game. The cost of travel, hotel room (exclusive of meals, beverages and other incidental charges) and away game admission tickets will be paid by Licensor. Requests to travel to any such game must be submitted in advance in to Team accordance with the procedures established by Team from time to time and will be subject to availability. Travel opportunities not used in a five (5) year period are not available in future seasons.
• Licensee will have the right each season to receive a total of eight (8) individual-game field passes that will allow pre-game access to the field level at the Stadium before a Team game. Each field pass provides one individual with pre-game field access to a single game. Requests for field passes must be submitted in advance to Team in accordance with the procedures established by Team from time to time, and will be subject to availability. _______________
Licensee’s Initials Date
_________
AMENDMENT TO STADIUM BUILDERS LICENSE AGREEMENT
This AMENDMENT TO STADIUM BUILDERS LICENSE AGREEMENT (this “Amendment”), effective as of [Date] (the “Amendment Effective Date”), amends the STADIUM BUILDERS LICENSE AGREEMENT, dated as of [Date] (the “Agreement”), by and between the Santa Clara Stadium Authority (“Stadium Authority”), and [Name] (“Licensee”). Capitalized terms not defined herein have the meaning given to them in the Agreement.
WHEREAS, Forty Niners Stadium Management Company LLC (“Stadium Manager”), as agent for the Stadium Authority, and Licensee have agreed to modify the terms of the Agreement as a result of the recent public health crisis and governmental restrictions on large venues; NOW THEREFORE, in consideration of the mutual promises and obligations set forth herein, the sufficiency of which is hereby acknowledged, the Stadium Manager and Licensee agree to modify the Agreement as follows:
1. Section 1(q) of Exhibit C of the Agreement shall be amended and restated in their entirety as follows:
“Term” means the period beginning on the date the Stadium first opens and ending on July 31 twenty-one (21) years after the date the Stadium first opens (anticipated to be 2014 in which case the Term would expire on July 31, 2035), or, if this Agreement is signed after the date the Stadium first opens, then the Term shall begin on the date the Agreement is signed by the Licensee and end at the expiration of twenty-one (21) years after such date.
2. Licensee acknowledges and agrees that Licensee shall not be entitled to receive any tickets, benefits, or other rights under the Agreement during the period from April 1, 2020 until March 31, 2021. In no event shall Licensee receive tickets under the Agreement for Team Games played during the 2020 NFL Season.
Except as expressly set forth in this Amendment, all other terms and conditions of the Agreement shall remain in full force and effect.
IN WITNESS WHEREOF, the Parties have caused this Amendment to be executed by their duly authorized representatives as of the Amendment Effective Date. [NAME] STADIUM AUTHORITY
By:______________________________ By:___________________________ Name: ___________________________ Name: ___________________________ Title: ____________________________ Title: ___________________________ Account No. ______________________
City of Santa Clara
Agenda Report
1500 Warburton Avenue
Santa Clara, CA 95050
santaclaraca.gov
@SantaClaraCity
22-1266 Agenda Date: 12/6/2022
REPORT TO COUNCIL
SUBJECT
Action on the City of Santa Clara Audited Annual Comprehensive Financial Report (ACFR) and Audited Silicon Valley Power (SVP) Financial Statements for Fiscal Year Ended June 30, 2022, as Recommended by the Audit Committee
COUNCIL PILLARS
Enhance Community Engagement and Transparency
Promote Sustainability and Environmental Protection
BACKGROUND
On November 30, 2022, the Audit Committee took action to accept the City of Santa Clara Audited Annual Comprehensive Financial Report and Silicon Valley Power Financial Statements for Fiscal Year Ended June 30, 2022 and referred the reports to the City Council to be noted and filed at a meeting in December 2022.
The annual financial audit is a City Charter requirement per Section 1319. The ACFR presents the audited financial information of the City in accordance with Generally Accepted Accounting Principles (GAAP) applicable to governments and provides the City Council valuable information for financial oversight, as well as providing information to creditors and the residents of Santa Clara.
The separate audited annual financial report for SVP is presented to make available additional information and disclosure relevant to the electric industry. The unmodified opinions from the auditor enhance the reputation of the Utility, and its adherence to GAAP applicable to governmental entities.
DISCUSSION
The annual financial audit of the City was recently completed and the City's external auditor, Maze & Associates, issued an unmodified (“clean”) opinion on the City’s Annual Comprehensive Financial Report (ACFR) for fiscal year ended June 30, 2022. The ACFR includes an extensive discussion and presentation of the financial data of the City and its related agencies in accordance with GAAP applicable to governmental entities. The ACFR also includes selected multi-year statistical information about the City. In addition, the City issued a separate, audited comparative financial statement report for SVP for fiscal year ended June 30, 2022.
City Finance staff prepares the financial statements and Maze & Associates audits the financial information contained within. Part of the audit is to determine whether City staff have the appropriate skills, knowledge, and expertise to prepare the ACFR in accordance with GAAP and other reporting requirements. Based on Maze and Associates’ determination, the City’s Finance staff has the necessary skills, knowledge, and expertise to compile high quality reports.
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22-1266 Agenda Date: 12/6/2022
Overall, the City’s financial condition was solid at the end of the fiscal year despite the COVID-19 impacts in fiscal year 2021-22. Key financial highlights for fiscal year June 30, 2022 are as follows:
· The assets of the City, as a whole, exceeded its liabilities by $2.2 billion in fiscal year 2021-22. · The City’s total net position increased by $198 million and primarily includes a $48 million increase in the governmental activities and a $150 million increase in business activities. · At the close of fiscal year 2021-22, the General Fund had assets of $334 million and a fund balance of $141 million. This represents a decrease in fund balance of $37 million, or 20.8% from the prior fiscal year. The decrease was mainly due to a fund recategorization for the building permit related activities. The building related development fund balance of $29 million was reclassified to the development service fee fund in Special Revenue Fund category. · The City’s total outstanding long-term debt decreased by $33 million during the current fiscal year primarily due to the repayment of Stadium Authority debt. · The City’s total net pension liability, which includes governmental activities and business-type activities, decreased by $151 million to $448 million at June 30, 2022. The changes were mainly due to the increase in investment earnings from the California Public Employees Retirement System (CalPERS). The City is a member of the CalPERS, which is a public employee retirement system that acts as a common investment and administrative agent for participating public entities within the State of California.
City staff and Maze & Associates met with the City Council Audit Committee on November 30, 2022.
Present were Committee members Watanabe, Jain and Park. During the Committee meeting, Maze & Associates gave a presentation about the audit process and scope of work, as well as the auditor’s opinion. The Director of Finance and staff gave an overview of the financial reports. Maze & Associates and staff responded to Committee member questions. The Audit Committee accepted the ACFR and SVP Financial Statements presented at the Committee meeting and recommended that the City Council note and file the reports at a December 2022 Council meeting.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(b)(4) in that it is a fiscal activity that does not involve any commitment to any specific project which may result in a potential significant impact on the environment.
FISCAL IMPACT
The staff and the external auditor costs associated with the audit and financial reports production are included in the annual appropriations.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email [email protected] <mailto:[email protected]>.
RECOMMENDATION
Note and file, as recommended by the Audit Committee:
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22-1266 Agenda Date: 12/6/2022
1. The audited City of Santa Clara Annual Comprehensive Financial Report (ACFR) for fiscal year ended June 30, 2022; and
2. The audited City of Santa Clara Electric Utility Enterprise Fund (Silicon Valley Power) Financial Statements for fiscal year ended June 30, 2022.
Reviewed by: Kenn Lee, Director of Finance
Approved by: Rajeev Batra, City Manager
ATTACHMENTS
1. Annual Comprehensive Financial Report (ACFR)
2. Silicon Valley Power (SVP) Financial Statements
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Annual Comprehensive
Financial Report
Fiscal Year Ended
June 30, 2022
ANNUAL COMPREHENSIVE FINANCIAL
REPORT
FISCAL YEAR ENDED JUNE 30, 2022
THE
MISSION CITY
CITY OF SANTA CLARA, CALIFORNIA
1500 WARBURTON AVENUE
SANTA CLARA, CA 95050-3796
PREPARED BY DEPARTMENT OF FINANCE
Introductory Section
This page intentionally left blank
CITY OF SANTA CLARA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
TABLE OF CONTENTS
For the year ended June 30, 2022
Page
i
INTRODUCTORY SECTION
Letter of Transmittal .................................................................................................................................................. v Roster of Council and Commission Members ........................................................................................................ xiv Executive Management Team .................................................................................................................................. xv GFOA Certificate of Achievement ......................................................................................................................... xvi Organization Chart ................................................................................................................................................. xvii Local Map ............................................................................................................................................................. xviii
FINANCIAL SECTION
Independent Auditor’s Report on Basic Financial Statements .................................................................................. 1 Management’s Discussion and Analysis .................................................................................................................... 5 Basic Financial Statements
Government-Wide Financial Statements
Statement of Net Position ..................................................................................................................... 28 Statement of Activities ......................................................................................................................... 30 Fund Financial Statements
Governmental Funds
Balance Sheet ....................................................................................................................................... 34 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position.................................................................................................................................... 37 Statement of Revenues, Expenditures, and Changes in Fund Balances ............................................... 38 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Government-Wide Statement of Activities ........................................................................................................................................ 41 Proprietary Funds
Statement of Net Position ..................................................................................................................... 44 Statement of Revenues, Expenses, and Changes in Fund Net Position ............................................... 48 Statement of Cash Flows ...................................................................................................................... 50 Fiduciary Funds
tatement of Fiduciary Net Position ....................................................................................................... 56 Statement of Fiduciary Net Position..................................................................................................... 57 Notes to Basic Financial Statements ................................................................................................................. 59
CITY OF SANTA CLARA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
TABLE OF CONTENTS
For the year ended June 30, 2022
Page
ii
Required Supplementary Information
Schedule of Changes in the Net Pension Liability and Related Ratios (Miscellaneous Plan) .................................................................................................................... 154 Schedule of Plan Contributions (Miscellaneous Plan) ....................................................................... 156 Schedule of Changes in the Net Pension Liability and Related Ratios (Safety Plan) ........................ 158 Schedule of Plan Contributions (Safety Plan) .................................................................................... 160 Schedule of Changes in the Net OPEB Liability and Related Ratios (OPEB Plan) ........................... 162 Schedule of Plan Contributions (OPEB Plan) .................................................................................... 163 Notes to Schedule of Employer Contributions (OPEB Plan) ............................................................. 164 General Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual (Non-GAAP Legal Basis) ........................................................... 165 Santa Clara Housing Successor Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual (Non-GAAP Legal Basis) ............................... 167 Notes to Required Supplementary Information .................................................................................. 168 Supplementary Information
Non-Major Governmental Funds
Combining Balance Sheet .................................................................................................................. 174 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances .......................... 178 Special Revenue Funds Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual (Non-GAAP Legal Basis) ................................................. 182 Non-Major Enterprise Funds
Combining Statement of Net Position ................................................................................................ 184 Combining Statement of Revenues, Expenses, and Changes in Fund Net Position ........................... 188 Combining Statement of Cash Flows ................................................................................................. 190 Internal Service Funds
Combining Statement of Net Position ................................................................................................ 196 Combining Statement of Revenues, Expenses, and Changes in Fund Net Position ........................... 200 Combining Statement of Cash Flows ................................................................................................. 202 Private Purpose Trust Funds
Combining Statement of Net Position ................................................................................................ 208 Combining Statement of Changes in Net Position ............................................................................. 209 Custodial Funds
Combining Statement of Net Position ................................................................................................ 210 Combining Statement of Changes in Net Position ............................................................................. 211
CITY OF SANTA CLARA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
TABLE OF CONTENTS
For the year ended June 30, 2022
Page
iii
STATISTICAL SECTION (UNAUDITED)
City of Santa Clara
1. Net Position by Component – Last Ten Fiscal Years .................................................................... 216
2. Changes in Net Position – Last Ten Fiscal Years ........................................................................ 217
3. Fund Balances – Governmental Funds – Last Ten Fiscal Years ................................................... 220
4. Changes in Fund Balances – Governmental Funds – Last Ten Fiscal Years ................................ 221
5. Assessed and Estimated Actual Value of Taxable Property – Last Ten Fiscal Years ............................................................................................................................................ 223
6. Property Tax Rates Direct and Overlapping Governments – Last Ten Fiscal Years ............................................................................................................................................ 224
7. Principal Property Tax Payers 2017-18 and 2010-11 Comparison for General Fund ............................................................................................................................................. 225
8. Property Tax Levies and Collections – Last Ten Fiscal Years ...................................................... 226
9. Principal Sale/Use Tax Contributors ............................................................................................. 227
10. Electric Utility Charge for Services by Source ........................................................................... 228
11. Ratios of Outstanding Debt by Type - Last Ten Fiscal Years ..................................................... 229
12. Population and Assessed Valuation – Last Ten Fiscal Years ....................................................... 230
13. Computation of Direct and Overlapping Bonded Debt\ ............................................................... 231
14. Legal Debt Margin Information – Last Ten Fiscal Years ............................................................ 232
15. Pledged Revenue Coverage Electric Revenue Bond – Last Ten Fiscal Years ............................. 233
16. Demographic and Economic Statistics – Last Ten Calendar Years ............................................. 234
17. Principal Employers – Current Year and Ten Years Ago ............................................................ 235
18. Full-Time Equivalent Budgeted City Employees by Program/Function – Last Ten Fiscal Years .......................................................................................................................... 236
19. Operating Indicators by Function/Activity – Last Ten Fiscal Years ............................................ 237
20. Capital Assets Statistics by Function – Last Ten Fiscal Years ..................................................... 238
21. Statement of Insurance Coverage ................................................................................................. 239 Successor Agency
1. Historical Tax Increment – Last Ten Fiscal Years ......................................................................... 243
2. Ten Largest Assessees – Taxable Value ........................................................................................ 244
3. Assessment Appeal Activity of Top 20 Assessees ......................................................................... 245
4. Computation of Direct and Overlapping Bonded Debt .................................................................. 246 This page intentionally left blank
1500 Warburton Avenue ● Santa Clara, CA 95050 ● Phone: 408-615-2340 ● Fax: 408-243-8687 ● www.SantaClaraCA.gov Finance Department
November 30, 2022
The Honorable Mayor and City Council
City of Santa Clara
Santa Clara, CA 95050
Dear Mayor and Members of the City Council:
It is our pleasure to submit for your information the Annual Comprehensive Financial Report (ACFR) of the City of Santa Clara (City) for the fiscal year ended June 30, 2022. The City compiles and prepares the annual financial report to provide interested parties with reliable information concerning the financial condition and results of operations for the City.
Responsibility for the accuracy of the data and the fairness of presentation, including all footnotes and disclosures, rests with the City. Management of the City has established a comprehensive internal control framework that is designed to protect the government’s assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the City’s financial statements in conformity with Generally Accepted Accounting Principles (GAAP). Because the cost of internal controls should not outweigh their benefits, the City’s comprehensive framework of internal control has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects.
Per the City Charter (Section 1319, Independent Audit) the City’s financial statements have been audited by Maze & Associates, a firm of licensed certified public accountants. The goal of the independent audit was to provide reasonable assurance that the financial statements of the City for the fiscal year ended June 30, 2022 are free of material misstatements. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering an unmodified opinion that the City’s financial statements for the fiscal year ended June 30, 2022 are fairly presented in conformity with GAAP. The independent auditor’s report is presented as the first component of the financial section of this report. v
The independent audit of the financial statements of the City was part of a broader, federally mandated "Single Audit" designed to meet the special needs of federal grantor agencies. The standards governing Single Audit engagements require that agencies expending more than $750,000 in federal monies, are required to have the independent auditor report not only on the fair presentation of the financial statements, but also on the audited government's internal controls and legal requirements involving the administration of federal awards. These reports are available in the City's separately issued Single Audit Report, scheduled for release in March 2023.
Management has provided a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management's Discussion and Analysis (MD&A). The letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The City's MD&A can be found immediately following the report of the independent auditors.
This report is divided into three sections:
• The Introductory Section includes this letter of transmittal, an organizational overview of the City government, and prior awards received.
• The Financial Section consists of the independent auditor's report, Management's Discussion and Analysis, Basic Financial Statements (which include the Government-Wide Financial Statements, Fund Financial Statements, and Notes to Basic Financial Statements), Required Supplementary Information, and a Supplementary Section containing the Combined and Individual Fund Financial Statements and Schedules.
• The Statistical Section includes a number of tables of unaudited data depicting the financial history of the City, demographics, and other selected information about the City.
PROFILE OF THE CITY OF SANTA CLARA
The City is located in the County of Santa Clara, California, and is approximately 45 miles southeast of San Francisco and three miles west of downtown San Jose. It is situated in the northern part of the County and occupies approximately 19 .3 square miles.
The City enjoys a diversified industrial and commercial base. Santa Clara is headquarters to some of the nation's leading electronics, telecommunications, computer, and semiconductor firms. The City is also home to a university, a community college, an adult learning center, a general hospital, a theme park, and a stadium.
The City's population is estimated at 129,100 indicating the City remains an attractive place both to live and work. The City is one of the most highly desirable areas to live because of the high- quality services it provides to residents and its business f
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iendly environment.
The City of Santa Clara, also known as the Mission City, is a charter city incorporated in 1852 under the laws of the State of California. The City's powers are exercised through a Council/Manager form of government. The City Council is made up of the Mayor, elected at large, and six councilmembers elected by district serving as the legislative authority. The City Council appoints a City Manager who is responsible for the overall management and administration of the City, a City Attorney to represent and advise the City Council and all City officers in all matters of law pertaining to their offices, and a City Auditor to audit and approve all bills, invoices, payrolls, demands or charges against the City government before payment and, with the advice of the City Attorney, advise the City Council as to the regularity, VI
legality and correctness of such claims, demands or charges. The Police Chief and the City Clerk are also publicly elected officials.
The City provides a full range of services. These services include police, fire protection and emergency dispatch; electric, water, and sanitary sewer services; the construction and maintenance of streets and infrastructure; parks and recreational activities and cultural events; planning and zoning; library; cemetery; and general administrative· and support services.
LOCAL ECONOMY
The local economy continued to improve during FY 2021/22 as the nation, State, and local economies continued to recover from COVID-19. On a national level, unemployment rates in June 2022 totaled
3.6%. This rate was well below the record setting high of 14.7% in April 2020, and almost at the prepandemic unemployment rate of 3.5%. The unadjusted unemployment rate in the San Jose-SunnyvaleSanta Clara Metropolitan Statistical Area (MSA) was 2.3% in June 2022.
At the local level, several of the City's General Fund revenues continue to be impacted, with the largest declines in the transient occupancy tax, sales tax, and fees for services categories. In response to the economic environment stemming from impacts of the COVID-19 pandemic, the City implemented various cost savings strategies at the end of March 2020. These actions included a hiring freeze in addition to more controls across overtime, as-needed staffing, marketing, travel, and technology and vehicle purchases.
While the nature of business travel, work, and how customers transact goods and services has evolved through the pandemic, FY 2021/22 saw the continued recovery of the impact of COVID-19 on the local economy. Tax revenue recovery is underway, however, remains significantly below pre-pandemic levels.
The City continued budget balancing effo1ts during the fiscal year in part through one-time ARPA federal funding totaling $26 million, use of reserves, and further expenditure and revenue actions. In May 2021, the City established policies for cost recovery of parks and recreation fees and concluded a fee study that adjusted and maximized recovery of services, as appropriate. As the City looks ahead, we are forecasting a $27 million ongoing General Fund shortfall sta1ting in FY 2023/24. A workplan considering several options of new revenues, expenditure or service deferments and maintaining cost controls to generate one-time savings is underway.
FINANCIAL INFORMATION
Long-term Financial Planning
The City Council has adopted key Council Strategic Pillars to guide long-term policy decisions and address the economic challenges that the City faces. The pandemic induced structural budget deficit will continue to stress the City's resources, but the City also continues to recognize the need to fund reserves and utilize a multi-pronged strategy to ensure ongoing expenditures are in alignment with ongoing revenues. The Council Strategic Pillars are:
• Promote and Enhance Economic, Housing and Transportation Development • Deliver and Enhance High Quality Efficient Services and Infr astructure
• Enhance Community Sports, Recreational and Arts Assets • Enhance Community Engagement and Transparency
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• Ensure Compliance with Measure J and Manage Levi's Stadium • Manage Strategically Our Workforce Capacity and Resources • Promote Sustainability and Environmental Protection
In addition, the City produces an annual Ten-Year Financial Forecast. The purpose of the Forecast is to provide policy-makers and the public an updated assessment of the City's fiscal health that takes into account the latest economic developments. The report includes historical perspective on revenues and expenditures and a ten-year financial outlook beyond the adopted budget year. The value of this type of analysis is to give the City Council, staff, and the public a tool to assist with strategic decision-making as they work to adopt the budget for the coming year. The Forecast is a collaborative effort between the City Manager's Office, Finance Department, and City depa1tments. Individual projections of revenues and expenditures are developed based on trend analyses, input f rom available economic rep01ts,
consultant recommendations, and input from other subject matter experts. The most current information available is incorporated into the Plan and refined on a moving forward basis as part of the City's commitment to fiscal responsibility.
The Forecast does not include the following:
• One-time funding sources and one-time expenditure needs; • The cost to address unmet/deferred capital infrastructure needs; • Revenue and staffing impacts of development projects; and • Additional contributions to Reserves (Budget Stabilization Reserve, Capital Projects Reserve, Pension Reserve).
Historically, the City has funded many of capital infrastructure and equipment needs with one-time funds on a pay-as-you-go basis. The use of one-time funds as the funding mechanism for capital improvements and various equipment that rely on the General Fund creates challenges. The lack of sufficient one-time funding has resulted in a backlog of unmet/deferred infrastructure needs. As part of the budget process, in May 2021, staff presented an updated unmet/deferred infrastructure need of over $570 million over the next five-years. Staff will continue to evaluate potential options to create capacity to address those funding needs.
In addition to the elements described above that are not factored into the Forecast, the City has identified various factors that could have potential positive or negative impacts on the Forecast. These include:
• More robust economic recovery following the COVID-19 vaccinations; • Less economic recovery as a result of worsening COVID-19 impacts due to variants and vaccine hesitancy;
• Future economic slowdown/recession;
• State/federal legislative changes and legal challenges; • Labor costs outside the budget assumptions;
• CalPERS actuarial changes or reform actions;
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• Unanticipated critical capital/infrastructure needs; and • Maintenance impacts and timing of development projects.
In January 2022, the Forecast indicated that the City was facing a $19.6 million ongoing deficit starting in FY 2023/24. In June 2022, that figure grew to a projected $27 million. The plan is to address the shortfall with a combination of the following:
• Ongoing expenditure reductions
• One-time savings f
rom cost control measures
• · Potential ballot measures and other revenue generating actions • Potential labor negotiations
While we continue to face impacts from the pandemic, and recovery has begun, many economists are now projecting a continued unsettled economic environment with high inflation, continued supply chain issues, geo-political instability, and the potential for a potential extended recession.
Internal Controls
The management of the City is responsible for establishing and maintaining internal controls designed to ensure that the assets of the City are protected f
rom loss, theft or misuse, and that adequate accounting data is compiled to allow for the preparation of financial statements in conformity with generally accepted accounting principles (GAAP). Internal controls are designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that: (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the evaluation of costs and benefits requires estimates and judgments by management. All internal control evaluations occur within the stated f
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amework. City management believes the City's internal accounting controls adequately safeguard assets and provide reasonable assurance of proper recording of financial transactions.
Budgetary Controls
As part of the City's internal controls, it maintains budgetary controls. The objective of these budgetary controls is to ensure compliance with legal provisions embodied in the annually appropriated budget approved by the City Council. In addition, a two-year Capital Improvement Project Budget is adopted and a Ten-Year Financial Forecast is updated and presented to the City Council annually. The City Council is responsible for approving the appropriation of fiscal resources to cover estimated expenditures for each fiscal year. Expenditures are appropriated in each fund to departments, offices, and agencies for various goods, services, and capital projects described in the budget. The legal appropriation control is established at the depaitment level in each fund. For select funds where expenditures are not allocated to a specific department, the appropriation control is established at the fund level. For capital funds, the appropriation control is at the project level. Transfers of funding between budgetary funds require City Council appropriation and approval. City Council approval is required for a budget amendment during the fiscal year which may include the use of reserves or fund balances, and approval of appropriations of grant monies. The City also maintains an encumbrance accounting system as one technique for accomplishing budgetary control. Encumbrances outstanding at year-end are included within the specific fund balance category of the underlying resource. Per Article XIII, Section 1305 of the City Charter, appropriations lapse at the end of each fiscal year; therefore, unencumbered funds allocated for specific projects, donations, and grants require City Council appropriation for use in the following fiscal year.
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Budgetary transfers between accounts or expenditure category may be done through Finance Department or City Manager's Office approval as long as they are conducted within the legal appropriation control limit set by the City Council.
Independent Audit
The City Charter and State of California statutes require the City to have an annual audit by an independent certified public accountant. The City goes to the market with a formal Request for Proposal for audit services every five years. The accounting firm of Maze & Associates, Certified Public Accountants, was selected by the City Council again in 2021 after the City conducted a competitive procurement process. This is the first year of audit in the new contract with Maze & Associates. In addition to meeting the requirements set forth in the City Charter and State statutes, the audit is designed to meet the requirements of the federal Single Audit Act of 1984, as amended in 1996 and by the recent Uniform Guidance. The auditors' report on the basic financial statements and the supplementary combining statements and schedules are included in the financial section of this report. The auditors' reports related specifically to the single audit are included in a separately issued single audit document on file with the City Clerk's Office.
MAJOR INITIATIVES
Addressing our Capital Infrastructure
Looking ahead, the City Council took action to adopt a two-year capital investment plan that focuses on our capital infrastructure, supporting the facilities that serve our residents and community. The Biennial Capital Budget totals $588 million and the Five-Year CIP totals $830 million, supporting infrastructure improvements throughout the City. Of this CIP amount, $627 million (76%) funds capital projects for the City's utilities and there is sufficient funding in the associated utility funds to support these projects. The other projects total $203 million and fund improvements to the parks, trails, libraries, transportation system, storm system, convention center and other City facilities. There are significant funding gaps in these areas and unfunded projects identified in this budget total $571.4 million over the next five years.
This funding gap does not fully represent all the unmet/deferred infrastructure needs throughout the City beyond the five-year CIP period. Long term funding strategies are needed to meet these infrastructure needs as the General Fund does not have sufficient funding to cover these capital costs. Staff will continue to review new funding sources over the next couple years to begin to address the unmet infrastructure needs.
Fiscal Sustainability
The FY 2022/23 General Fund balancing strategy adopted as part of the FY 2021 /22 and FY 2022/23 biennial budget remains in place. Because the budget used one-time balancing actions and reserves, additional budget balancing actions will be necessary in the upcoming FY 2023/24 and FY 2024/25 Biennial Operating Budget that will be adopted in June 2023. Based on the latest Ten-Year General Fund Forecast, an ongoing shortfall of approximately $27 million is projected and will be addressed in the next Biennial Operating Budget. A combination of revenue solutions, expenditure reductions and use of reserves is again expected to be used. Work to identify new ongoing sources has been underway, including fiscal sustainability measures for consideration on the November 2022 ballot. These measures will be critical to better position the City moving forward and reduce the level of service disruptions that may be needed to address the budget deficit.
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Development Projects
More than $3 billion in new development projects are on the horizon for Santa Clara in the next few years, with the likelihood of more to come. There are many residential and commercial projects in various stages of planning. While these projects are underway, it is important to note that changes due to COVID-19 has caused some pause to activity as developers learn about the long-term impacts related to community gatherings, engagement, and regulations. Furthermore, the recent fiscal uncertainty with high inflation impacts to construction costs and a sharp interest rates increases resulting in higher borrowing costs creates a potential for a slowdown in economic activity. As these projects are both sensitive to new community requirements and an economic downturn: therefore, flexibility will be required. Below are highlights of a few of the larger projects:
Related Santa Clara Project
The Related Santa Clara Project is envisioned to be an approximately 240-acre, multi-phased urban city development located in the heart of the Silicon Valley. The project will create a new center of activity for the community and region, providing significant mixed-use development, retail offerings, office buildings, hotel rooms, and rental residential dwellings at an urban scale, as well as accessible outdoor spaces and new infrastructure to suppo1t the development.
Downtown Master Plan
The City of Santa Clara is in the process of planning for the revitalization of our Downtown by developing a Precise Plan that will provide guidance for new development within a po1tion of the Downtown Focus Area. Following an initial community engagement effort, three land use scenarios/conceptual plans have been developed. Additional review and testing of the land use/design options, a larger context study to understand compatibility and competition from other large development projects, and an El Camino Real intersection study to understand multi modal connectivity from regional transit to downtown will be performed. This work will focus on market feasibility, retail strategy and connectivity.
Electric Vehicle (EV) Charging
SVP's EV charging infrastructure will support the City's conversion to clean energy and prepare for future installations in accordance with California standards. This project meets the City Council's priority toward sustainability and will expand new EV charging stations throughout the City over the next five years.
Community Park North- Phase I
Per the Developer Agreement, a 34.9-acre parcel, formerly part of the City's golf course, will be developed into Santa Clara's second community park. This project is funded from a Developer Contribution in the amount $5 million, of which $500,000 is for design and engineering and $4.5 million for construction of Phase I improvements. Phase I will include community outreach, schematic design and design development, and program planning. Phase I improvements will be determined after the community outreach process.
Freedom Circle Mixed Use Project
This project proposes a General Plan Amendment and Re-zoning to Planned Development to construct a mixed-use development project on a 16.6 acre site within the Freedom Circle specific plan area, that consists of 1,018 residential units, 606,968 square feet of office space, 18,653 square feet of commercial xi
space and 2.5 acres of publicly accessible open space, including bicycle and pedestrian connections to the San Tomas Aquino Creek Trail.
Benton Street Mixed Use Project
Developed by Prometheus, this project currently under construction consists of up to 355 apartment units including eight live-work units, 650 parking spaces, 1,601 square feet of leasing office space, 346 square feet pet spa area, 1,528 square feet of bike amenity space, an amenity roof deck with 4,341 square feet of club room and a fitness center, three private courtyards and a public courtyard facing The Alameda. The project includes approximately 22,000 square feet of retail space and potentially an additional 2,364 square feet of commercial space within 8 livework units. This project was completed during the fiscal year.
Kylii Mixed Use Development Project
This project is in review for a General Plan amendment for a nine-parcel property to amend the designation from High-Intensity Office/Research to a newly established mixed-use designation allowing a high-intensity mix of office, commercial, and residential uses. The proposed amendment could support future development on the property. Potential development area includes 3.5 million square feet of office and 6,000 housing units.
Patrick Henry Drive Specific Plan
The Patrick Herny Drive Specific Plan's planning area encompasses approximately 74-acres of land bounded by Calabazas Creek, Mission Community College, Great America parkway, and the SFPUC right of way. The vision is to transform a series of l 970's office parks into a cohesive, high-density mixed-use community that fosters economic vitality, helps ameliorate the State's housing shortage, and enhances quality of life for those who live, work, and recreate in the area.
Lawrence Station Area Plan
The Lawrence Station Area Plan provides a mixed-use development on an approximately 72 acres site (65 acres of developable land area excluding existing public right-of-way) located in close proximity to the Cal train Lawrence Station serving the communities of Santa Clara and Sunnyvale. The Plan will create a lively neighborhood that accommodates up to 3,500 residential dwelling units, roughly 100,000 square feet of neighborhood oriented and convenience retail, and approximately 6.3 acres of public open space in conjunction with various outdoor recreational facilities and landscape features, such as a community garden, a public plaza, pocket parks and paseos. The targeted residential density is 45 - 56 dwelling units per acre. An existing Santa Clara Fire Department Station will remain in place as a component of the Plan, potentially incorporating a Santa Clara Police Depaitment Substation. Associated infrastructure improvements are also required, including an internal road network comprised of public and private streets, and upgrades to sewer, water, and storm drain systems.
Tasman East Specific Plan
The project area is an existing industrial neighborhood 45 acres in size, and is bounded by Tasman Drive to the south, the Guadalupe River to the East, the Santa Clara golf course to the north, and Lafayette Street to the west. The Plan creates a framework for the development of a high-density and transitoriented neighborhood (currently proposed to be up to 100 Dwelling units per acre), along with suppo1tive retail services. The specific plan will lay out allowed uses, densities, height limits and design xii
criteria in the Tasman East area. Connections to the existing Guadalupe River trail, potential locations for parkland, and strategies for better access to transit will also be incorporated into the plan.
FINANCIAL POLICIES
The City has adopted a comprehensive set of financial policies. These policies address items such as budget, cash management, interfund loans, investments, reserves, and debt management. The City Council reviews and approves budgetary policies as part of the annual budget process. Investment and debt policy statements are reviewed and approved by the City Council under separate cover.
AWARDS
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement in Excellence in Financial Reporting to the City for its Annual Comprehensive Financial Report for the fiscal year ended June 30, 2021. The Certificate of Achievement is a prestigious national award, recognizing conformance with the highest standards for preparation of state and local government financial reports and is valid for a period of one year only. The City has received this prestigious award for the past thi1ty consecutive years.
To be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized annual comprehensive financial report. This report must satisfy both accounting principles generally accepted in the United States of America and applicable legal requirements. We believe that our current Annual Comprehensive Financial Report continues to meet the Certificate of Achievement Programs' requirements and we are submitting it to GFOA to determine its eligibility for another ce1tificate.
ACKNOWLEDGEMENTS
The preparation of this report would not have been possible without the efficient and dedicated services of the entire staff of the Finance Department. We wish to thank all City departments for their assistance in providing the data necessary to prepare this report. Credit and thanks are also due to the Mayor and City Councilmembers for their unfailing support for maintaining the highest standards of professionalism in the management of the City's finances.
II)' submitt~
Kenn Lee
Director of Finance
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Roster of Council and Commission Members
ROSTER OF COUNCIL AND COMMISSION MEMBERS
CITY COUNCIL
Mayor Lisa M. Gillmor
Councilmember District 1 Kathy Watanabe
Councilmember District 2 Raj Chahal
Councilmember District 3 Karen Hardy
Councilmember District 4 Kevin Park
Councilmember District 5 Sudhanshu “Suds” Jain
Councilmember District 6 Anthony J. Becker
BOARD OF LIBRARY TRUSTEES CIVIL SERVICE COMMISSION
Leonne Broughman, Jan Hintermeister, Stephen
Ricossa, Debbie Tryforos, Jonathan Evans
Tahir Naim, Willie D. Brown Jr., John Casey,
Franklin J. Felizardo, Carolyn G. McAllister,
CULTURAL COMMISSION HISTORICAL AND LANDMARKS
COMMISSION
Candida A. Diaz, Debra von Huene, Jonathan
Marinaro, Paul McNamara, Louis Samara,
Siddarth Sundaram, Jennifer Garcia Vega
Kathleen Romano, Michael Celso, Amy Kirby,
Megan Swartzwelder, Patricia Leung, Ana
Vargas-Smith, Ed Stocks
PLANNING COMMISSION PARKS AND RECREATION COMMISSION
Nancy A. Biagini, Mario Bouza, Ricci Herro,
Qian Huang, Lance Saleme, Priya Cherukuru,
Yashraj Bhatnagar
Burt Field, Sajid Hai, Maureen Reilly Chu, Kelly
Gonzalez, Brittany Ricketts, Eversley Forte,
Dana Caldwell
SENIOR ADVISORY COMMISSION SALARY SETTING COMMISSION
Wanda Buck, James Hohenshelt, Grant L.
McCauley, Nancy Toledo, Edmund Drozek, Tom
Freitas, Veena Sterling, Judy Hubbard
Eric Chu, Marjorie Banko, MV Kumar, John
Sontag, Ram Misra
YOUTH COMMISSION
Namita Gaidhani (Alternate), Simren Garg, Aarav
Gupta, Fatimah Ismail, Maryam Ismail
(Alternate), Ryan Kim, Jasmine Kelly-Tanti,
Khadeejah Khan, Rajvi Khanjan Shroff, Kira
Liang, Keith Maben, Malia Martin, Samaira
Mehta, Hiranya Parekh, Sudeepthi Ravipati,
Samarth Suresh, Sarah Zuo
DOWNTOWN COMMUNITY TASK FORCE
Butch Coyne, Rob Mayer, Dan Ondrasek,
Mathew Reed, Chan Thai, Adam Thompson,
Ana Vargas-Smith, Atisha Varshney, Debra Von
Huene
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EXECUTIVE MANAGEMENT TEAM
CITY MANAGER
Rajeev Batra
CITY ATTORNEY CITY AUDITOR
James Sanchez (Interim) Vacant
CITY CLERK
Hosam Haggag
CHIEF OPERATING OFFICER
Nadine Nader
ASSISTANT CITY MANAGER CHIEF ELECTRIC UTILITY OFFICER
/ASSISTANT CITY MANAGER
Cynthia Bojorquez Manuel Pineda
CHIEF OF POLICE FIRE CHIEF
Pat Nikolai Ruben Torres
DIRECTOR OF HUMAN RESOURCES DIRECTOR OF FINANCE
Aracely Azevedo Kenn Lee
DIRECTOR OF PARKS & RECREATION DIRECTOR OF INFORMATION TECHNOLOGY James F. Teixeira Gaurav Garg
CITY LIBRARIAN DIRECTOR OF WATER AND SEWER UTILITIES
Patty Wong Gary Welling
DIRECTOR OF PUBLIC WORKS DIRECTOR OF COMMUNITY DEVELOPMENT Craig Mobeck Andrew Crabtree
Executive Management Team
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GFOA Certificate of Achievement
"
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Santa Clara
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2021
Executive Director/CEO
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Organization Chart
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Local Map
Financial Section
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INDEPENDENT AUDITOR’S REPORT
To the Honorable Members of the City Council
City of Santa Clara, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Santa Clara, California, as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the Table of Contents. We did not audit the component unit financial statements of the Santa Clara Stadium Authority (Stadium Authority), as of and for the year ended March 31, 2022, which is both a major fund and 30.1%, 5.0%, and 7.2% of the assets, net position and revenues, respectively, of the business-type activities. The financial statements of the Stadium Authority were audited by other auditors whose report has been furnished to us, and our opinion, insofar as it relates to the amounts included for the Stadium Authority, is based solely on the report of other auditors.
We also did not audit the financial statements of Northern California Power Agency (NCPA), Transmission Agency of Northern California (TANC), M-S-R Public Power Agency (MSR PPA), and San Jose-Santa Clara Regional Wastewater Facility and Clean Water Financing Authority (SJSC) as of and for the year ended June 30, 2022, related to the calculation of the Investments in Joint Ventures. The Investment in these Joint Ventures collectively represents 12.5%, 22.1%, and 1.6%, respectively, of total assets, net position and revenues of the business-type activities. The financial statements of the NCPA, TANC, MSR PPA and SJSC were audited by other auditors whose reports have been furnished to us, and our opinion, insofar as it relates to the calculation of the Investments in Joint Ventures, is based solely on the reports of the other auditors.
In our opinion, based on our audit and the reports of the other auditors, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City as of June 30, 2022, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America 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 requirement 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.
Accountancy Corporation 1
3478 Buskirk Avenue, Suite 215
Pleasant Hill, CA 94523
T 925,930,0902
F 925,930.0135
E [email protected]
w mazeassociates.com
Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of these 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 the financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.
Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards 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, individually or in the aggregate, they could reasonably be expected to 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.
2 Changes in Accounting Principles
Management adopted the provisions of Governmental Accounting Standards Board Statement No. 87, Leases, which became effective during the year ended June 30, 2022 and required the restatement of certain balances as discussed in Note 1C to the financial statements.
The emphasis of this matter does not constitute a modification to our opinions.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis and other required supplementary information as listed in the Table of Contents be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The accompanying Supplementary Information, as listed in the Table of Contents, is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements.
The information has been subjected to the auditing procedures applied in the audit of the 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 Section and Statistical Section listed in the Table of Contents, 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 exits, we are required to describe it in our report.
3 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated November 30, 2022, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.
Pleasant Hill, California
November 30, 2022
4 5
Management’s Discussion and Analysis
MANAGEMENT’S DISCUSSION AND ANALYSIS
The Management’s Discussion and Analysis (MD&A) of the City of Santa Clara’s (City) Annual Comprehensive Financial Report provides an overview of the City’s financial activities for the fiscal year ended June 30, 2022. The intent of this discussion and analysis is to look at the City’s financial performance. Readers should review the discussion and analysis in conjunction with the basic financial statements, as well as the notes to the financial statements to enhance their understanding of the City’s financial performance.
FINANCIAL HIGHLIGHTS
Financial highlights for fiscal year June 30, 2022 are as follows:
The assets and deferred outflows of resources of the City exceeded its liabilities and deferred inflows of resources by $2.2 billion in fiscal year 2021-22. Of this amount, $(170) million represents unrestricted net position, an increase of $20 million from fiscal year 2020-21. The deficit is comprised of a negative balance of $283 million for governmental activities and a positive balance of $113 million for business-type activities. The negative net position in governmental activities is primarily due to the net pension liability of $347 million and the net Other Post Employment Benefits (OPEB) liability of $23 million as of June 30, 2022. The City’s total net position that increased by $198 million includes a $48 million increase in governmental activities primarily from the moderately growing economy since pandemic and a $150 million increase in business-type activities mainly from rate increases in Electric Utility and increased equity in the Sewer Utility joint project equity. The total net pension liability including governmental activities and business-type activities decreased by $151 million or 25.2% during fiscal year 2021-22 to $448 million from $599 million. The changes were mainly due to the increase in investment earnings. Deferred outflows of resources related to pensions are a $87 million at June 30, 2022, a decrease of $9 million from prior year. Deferred inflows of resources related to pensions are $118 million at June 30, 2022, an increase of $117 million from prior fiscal year. The increase is primarily due to a higher net return on investments from CalPERS. More details on the net pension liability are included in Note 13.
The net OPEB liability increased by $5 million or 13.9% during fiscal year 2021-22 to $41 million at June 30, 2022 from $36 million in fiscal year 2021-22. More details on the net OPEB liability are included in Note 16.
The City’s total liabilities, excluding net pension liability and net OPEB liability, increased by $4 million to $1,104 million at June 30, 2022. The increase of the liabilities is mainly due to the $2.6 million lease liabilities from the GASB87 implementation in fiscal year 2021-22. More details on leases are included in Note 4.
As of June 30, 2022, the City’s governmental funds reported combined fund balances of $325 million, an increase of $8 million from the prior year. At June 30, 2022, $77 million is in the unassigned fund balance and available for spending at the City’s discretion. At the close of fiscal year 2021-22, the General Fund had assets of $334 million and a fund balance of $141 million. This represents a decrease in fund balance of $37 million, or 20.8% from prior fiscal year. The decrease was mainly due to a fund recategorization for the building permit related activities. The building related development fund balance of $29 million was reclassified to the development service fee fund in Special Revenue Fund category. Of the total MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)
6 fund balance, $111 million was unrestricted (the total of committed, assigned, and unassigned components of fund balance).
In November 2012, the Santa Clara Stadium Authority (Stadium Authority) elected to adjust its fiscal year to April 1 through March 31 to conform with the fiscal year of Stadium Funding Trust (FinanceCo). This report covers the twelve month period from April 1, 2021 through March 31, 2022. As of March 31, 2022, buildings, infrastructure and land improvements equaled $831 million and the assets of the Stadium Authority exceeded its liabilities by $76 million. The City’s total outstanding long-term debt decreased by $33 million primarily due to the repayment of Stadium Authority debt.
OVERVIEW OF THE FINANCIAL STATEMENTS
This annual report consists of a series of financial statements and notes to those statements. These statements are organized so the reader can understand the City as a whole. This report consists of six parts – introductory section, financial/MD&A section, basic financial statements, required supplementary information, supplementary information, and statistical section.
The basic financial statements include two types of statements that present different views of the City:
The Government-wide Financial Statements provide both long-term and short-term information about the City’s overall financial status.
The Fund Financial Statements focus on individual parts of the government, reporting the City’s operations in more detail than the government-wide statements.
Government-wide Financial Statements
Government-wide statements report information about the City as a whole using accounting methods similar to those used by private-sector companies. They include the Statement of Net Position and the Statement of Activities.
The Statement of Net Position presents information on all of the government’s assets, deferred outflows of resources, liabilities and deferred inflows of resources. Over time, increases or decreases in the City’s net position may serve as an indicator of whether the financial position of the City is improving or deteriorating.
The Statement of Activities provides information about the City’s revenues and expenses, regardless of the timing of related cash flows. The Statement of Activities explains in detail the change in net position for the fiscal year.
The Government-wide Financial Statements are divided into two categories:
Governmental Activities—all of the City’s basic services are governmental activities. Included in basic services are the City Council, City Manager, City Clerk, City Attorney, Information Technology, Human Resources, Finance, Parks and Recreation, Library, Planning and Inspection, Public Works, Police, and Fire. These services are principally supported by taxes and intergovernmental revenues.
MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)
7 Business-Type Activities—unlike governmental services, these services are intended to recover all or a significant portion of their costs through user fees and charges. All the City’s enterprise activities are reported as business-type activities, including the Major funds (Electric, Water, Sewer, Water Recycling utilities, and Stadium Authority) and Non-Major funds (Solid Waste, Cemetery, Santa Clara Convention Center, and Sports and Open Space Authority).
The City is the primary government in this report. These financial statements include four entities that, although legally separate, are important because they are blended component units of the City. These component units are the Santa Clara Stadium Authority, City of Santa Clara Sports and Open Space Authority, the Santa Clara Housing Authority, and the City of Santa Clara Public Facilities Financing Corporation. These component units have been included as an integral part of the City (that is, they have been “blended” with those of the City) and they are not reported as separate discrete component units in these financial statements.
Fund Financial Statements
The Fund Financial Statements provide detailed information about each of the City’s most significant funds, called major funds. Each major fund is presented individually, with all non-major funds combined in a single column on each fund statement. The non-major fund statements are presented in the Supplementary Information section of this report. Major funds present the primary activities of the City for the year and may change from year to year as a result of changes in the pattern of the City’s activities.
All the funds of the City can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds.
Governmental Funds: Most of the City’s basic services are included in Governmental Funds which focus on how money flows into and out of these funds and the balance left at fiscal year-end that are available for spending. These funds are reported using an accounting method called modified accrual accounting, which measures cash and all other financial assets that can readily be converted to cash. The governmental funds statements provide a detailed short-term view of the City’s general governmental operations and the basic services it provides. Governmental fund information helps determine whether there are more or fewer financial resources that can be spent in the near future to finance the City’s programs. 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.
Proprietary Funds: Enterprise and Internal Service Fund Financial Statements are prepared on the full accrual basis of accounting, similar to that used by private sector companies. Proprietary funds are reported in the same way that all activities are reported in the Statement of Net Position and the Statement of Revenues, Expenses, and Changes in Net Position. The City’s Proprietary Funds are the same as the business-type activities reported in the Government-wide Statements but provide more detail and additional information, such as cash flows.
Since the City’s Internal Service Funds provide goods and services only to the City’s governmental and business-type activities, their activities are only reported at the fund level. Internal Service Funds cannot be considered major funds because their revenues are derived from other City funds. Revenues between MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)
8 funds are eliminated in the Government-wide Financial Statements and any related profits or losses are returned to the activities in which they were created, along with any residual net position of the Internal Service Funds.
Fiduciary Funds: Fiduciary Funds are prepared on the full accrual basis, similar to the Proprietary Funds.
The City has three types of Fiduciary Funds: the Custodial Funds (which includes Employee Supplemental Funds, Special Assessments, and Custodial Deposits), and the Private Purpose Trust Funds (which includes the Charitable Trust and Successor Agency). The City’s fiduciary activities are reported separately in the Statement of Fiduciary Net Position and the Statement of Changes in Fiduciary Net Position. These activities are excluded from the City’s Financial Statements because the City cannot use these assets to finance its own operations.
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. The Notes to the Financial Statements follow the basic financial statements.
Other information
In addition to the basic financial statements and accompanying notes, this report also presents required supplementary information. This information includes budgetary comparison schedules and the City’s progress in funding its obligation to provide pension and other post-employment benefits to its employees. Required supplementary information can be found immediately following the Notes to the Financial Statements.
GOVERNMENT-WIDE FINANCIAL STATEMENTS ANALYSIS
Citywide Financial Statements
This section focuses on the City’s net position and changes in net position of its governmental and business-type activities for the fiscal year ending June 30, 2022. As noted earlier, the City’s total assets and deferred outflows of resources exceed total liabilities and deferred inflows of resources by $2.2 billion at the end of the fiscal year, an increase in net position of $198 million.
MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)
9 2022 2021* 2022 2021* 2022 2021*
Cash and investments 371 $ 346 $ 688 $ 702 $ 1,059 $ 1,048 $ Other assets 306 144 545 364 851 508
Capital assets 637 640 1,463 1,445 2,100 2,085
Total Assets 1,314 1,130 2,696 2,511 4,010 3,641
Deferred outflows from refunding - - 6 7 6 7
Deferred outflows OPEB related 2 1 2 1 4 2
Deferred outflows pension related 69 76 18 20 87 96
- -
Total Deferred Outflows
of Resources 71 77 26 28 97 105
14 12 451 482 463 496
Net OPEB liability 23 20 18 16 41 36
Net pension liability 347 464 101 135 448 599
Other liabilities 89 93 552 512 641 605
Total Liabilities 471 591 1,122 1,145 1,593 1,736
- - 42 13 42 13
Deferred inflows from refunding - - 2 2 2 2
Deferred inflows Lease-related 159 - 4 - 163 -
Deferred inflows OPEB related 2 3 1 3 3 6
Deferred inflows pension related 93 1 25 - 118 1
Total Deferred Inflows
of Resources 254 4 74 18 328 22
Net investment in capital assets 626 626 1,080 1,042 1,706 1,668 Restricted 317 276 333 234 650 510
Unrestricted (283) (290) 113 100 (170) (190)
Total Net Position 660 $ 612 $ 1,526 $ 1,376 $ 2,186 $ 1,988 $ Table 1
Governmental And Business-Type Net Position
(in millions)
Governmental Activities
Long-term debt outstanding
Business-Type Activities Total
* Not restated for the implementation of GASB Statement No. 87, Leases, discussed in Notes 2C and 4.
Deferred inflows on derivative
instruments
MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)
10 The largest portion of the City’s net position, $1.7 billion (78%), is its investment in capital assets (e.g., land, infrastructure, buildings, machinery and equipment), less any related outstanding debt that was used to acquire those assets. The City uses these capital assets to provide services to its residents and other stakeholders. Accordingly, these assets are not available for future spending. Although the City’s investment in its capital assets is reported net of related debt, the resources needed to repay this debt must be provided from other sources because the capital assets themselves cannot be used to liquidate these liabilities.
The restricted portion of the City’s net position of $650 million (30%) represents resources that are subject to external restrictions on how they may be used. The remaining balance of $(170) million (-8%) is unrestricted and is negative due to the City’s net pension and OPEB liabilities.
At the end of the current fiscal year, the City is able to report positive balances in all reported categories of net position except for the Information Technology Services Internal Service Fund, Workers’ Compensation Insurance Claims Internal Service Fund, Special Liability Insurance Claims Internal Service Fund, and Solid Waste Enterprise Fund.
MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)
11 2022 2021 2022 2021 2022 2021
$ 33 48 $ 889 $ 666 $ 937 $ 699 $
17 34 - - 34 17
12 6 1 3 7 15
56 57 - - 57 56
68 74 - - 74 68
3 11 - - 11 3
6 7 - - 7 6
25 27 - - 27 25
6 6 12 14 18 20
(5) (14) (27) (6) (41) (11)
- - 14 1 14 1
10 7 - - 7 10
Other 25 59 - - 59 25
256 322 889 678 1,211 934
34 38 - - 38 34
1 1 - - 1 1
2 2 - - 2 2
2 2 - - 2 2
10 10 - - 10 10
42 39 - - 39 42
20 20 - - 20 20
88 72 - - 72 88
71 58 - - 58 71
16 15 - - 15 16
11 11 - - 11 11
- - 552 455 552 455
- - 46 45 46 45
- - 30 30 30 30
- - 6 6 6 6
- - 33 30 33 30
- - 1 1 1 1
- - 12 5 12 5
- - 65 41 65 41
297 268 745 613 1,013 910
(41) 54 144 65 198 24
(6) (6) 6 6 - -
(47) 48 150 71 198 24
Change in accounting principal - 9 - - - 9
650 612 1,376 1,305 1,988 1,955
$ 612 660 $ 1,526 $ 1,376 $ 2,186 $ 1,988 $
Net position - July 1 (as restated July 1, 2020)
Net position - June 30
Santa Clara Stadium Authority
Increase(decrease) in net position before transfers
Increase (decrease) in net position
Total expenses
Water
Sewer
Transfers in (out)
Water Recycling
Solid Waste
Cemetery
Equity in income (losses) of joint ventures
Library
Utilities:
Electric
General revenues:
Taxes:
Transient occupancy
Other
Ad valorem property
Sales
Capital grants and contributions
Operating grants and contributions
Revenues:
Program revenues:
Activities
Charges for services
Activities Total
Table 2
Governmental and Business-Type Changes in Net Position
(in millions)
Governmental Business-Type
Contribution in lieu of taxes
Investment earnings
Net increase (decrease) in fair value of investments
Planning and Inspection
Finance
Public Works
Parks and Recreation
Public Safety:
Police
Fire
Rents and royalties
Total revenues
Expenses:
General Administration
City Clerk
City Attorney
Human Resources
Santa Clara Convention Center
MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)
12 Governmental Activities - governmental activities increased the City’s net position by $48 million. The increase was due to receipt of one-time $26 million Coronavirus State and Local Fiscal Recovery revenues and $18 million of impact fee revenues from significant development projects in the City.
Business-type Activities - business-type activities increased the City’s net position by $150 million. This is primarily due to an increase of $55 million in the Electric Utility as a result of increased developer contributions and increases in the joint venture equity and an $82 million equity increase in the Sewer Utility joint project.
Governmental Activities
The chart below presents revenues by source for Governmental Activities. General revenues are composed of taxes and other revenues not specifically generated by, or restricted to, individual activities.
All tax revenues and investment earnings are included in general revenues.
Sales taxes
17% Ad valorem property taxes
22%
Transient occupancy taxes
3%
Other taxes
2%
Investment earnings
2%
Contribution in lieu
8%
Rents and royalties
2% Program revenues
27%
Other revenues
17%
Sources of Revenue
MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)
13 The following analysis presents a comparison of fiscal year 2021-22 and fiscal year 2020-21 by the total cost and net cost of each of the City’s largest programs. Net cost is defined as total program cost less the revenues generated by those specific activities. It is common to see Governmental Activities as net cost generators, wherein costs of governmental activities are greater than the revenues they generate.
Total Cost
of Services
2022 2021 2022 2021
General Administration 38 $ 34 $ - $ 26 $
City Clerk 1 1 1 1
City Attorney 2 2 2 2
Human Resources 2 2 2 2
Finance 10 10 10 10
Public Works 39 42 24 15
Parks and Recreation 20 20 18 19
Public Safety:
Police 72 88 70 86
Fire 58 71 49 63
Planning and Inspection 15 16 (6) (1)
Library 11 11 11 11
Totals 268 $ 297 $ 181 $ 234 $
of Services
Net Cost
Table 3
Governmental Activities
(in millions)
In fiscal year 2021-22, total cost of services decreased $29 million and net cost decreased $53 million.
The total cost of services in General Administration were $38 million, an increase of $4 million from fiscal year 2020-21, and the net total cost of services in the General Administration were $448 thousand, a decrease of $26 million from the prior fiscal year. The decrease in the General Administration net cost of services is due primarily to the $26 million of federal stimulus funds that was used to continue critical essential public safety services. The total cost of services in Public Safety was $130 million, a decrease of $29 million from fiscal year 2020-21 and the decrease is mainly attributed to the $26 million decrease in the CalPERS pension expenditure due to higher investments earnings.
MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)
14 Business-type Activities
The following analysis provides the total costs and net costs of each of the City’s enterprise funds. Net cost is defined as total program cost less the revenues generated by each enterprise fund.
Total Cost
of Services
2022 2021 2022 2021
Utilities:
Electric 552 $ 456 $ (59) $ (72) $
Water 46 45 (6) (7)
Sewer 30 30 (86) 14
Water Recycling 6 6 - -
Solid Waste 33 30 (2) 3
Cemetery 1 1 - 1
Santa Clara Convention Center 12 5 3 3
Santa Clara Stadium Authority 65 41 6 2
Totals 745 $ 614 $ (144) $ (56) $
Table 4
Business-Type Activities
(in millions)
Net Cost
of Services
The City’s business-type total cost of services increased $131 million and net cost of services decreased $88 million in fiscal year 2021-22. The net cost of services for the Sewer Utility were ($86) million, a decrease of $100 million from the prior year. This net cost decrease can mainly be attributed to the equity increase in the sewer joint project with City of San Jose. The total cost of services in the Electric Utility Fund increased by $96 million were due to higher costs of resource purchases.
FUND FINANCIAL STATEMENTS
Financial Analysis of Governmental Funds
The City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. The focus of the City’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City’s financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for discretionary use as they represent the portion of fund balance which has not yet been limited to use for a particular purpose.
At June 30, 2022, the City’s governmental funds reported a combined fund balance of $325 million, an increase of $8 million or 2.7% in comparison with the prior fiscal year. Approximately 23.6% or $77 million constitutes unassigned fund balance, which is available for spending at the City’s discretion. The remainder of the fund balance is either nonspendable, restricted, committed, or assigned to indicate that it MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)
15 is 1) not in spendable form, $7 million, 2) restricted for particular purposes, $133 million, 3) committed for particular purposes, $98 million, or 4) assigned for particular purposes, $10 million.
Governmental fund revenues were $322 million, an increase of $62 million, or 23.9%, from $260 million in the prior year. Most of this increase is attributed to $26 million of Coronavirus State and Local Fiscal Recovery fund revenues and a $18 million increase in the impact fees revenues due to the significant development projects in the City.
Governmental fund expenditures were $303 million, a slight increase of $5 million or 1.7% from the prior year. The increase is net effect of the $16 million increase in the Citywide departments and $11 million decrease in the capital outlay.
General Fund
Revenues
The City’s General Fund revenues totaled $221 million in fiscal year 2021-22, a decrease of $5 million or
2.2% from the prior fiscal year.
Sales tax accounts for approximately 25.7% of direct General Fund revenues. Sales tax revenue increased $1 million from the prior year to $57 million with the roll out of mass vaccinations and the lifting of pandemic-related restrictions. However, sales tax revenue was still $8 million lower than pre-pandemic levels.
Property tax (ad valorem) is the largest revenue source of General Fund revenues. For fiscal year 2021- 22 were $75 million, an increase of $6 million or 8.7% from the prior year. The increase is a result of growth in the assessed valuation on secured properties and the value of new construction projects being added to the tax roll.
Transient occupancy taxes (TOT) is calculated as a percentage of City hotel/motel room charges. The City Council approved a rate increase from 9.5% to 11.5% effective January 1, 2022. This implemented one-half of the up to four percentage point increase approved by the voters in November 2020. Due to COVID-19 safety restrictions, TOT plummeted at the end of fiscal year 2019-20 and through fiscal year 2020-21. In fiscal year 2021-22, the TOT revenues were $11 million, an $8 million or 166.6% increase over fiscal year 2020-21. However, it remains well below pre-COVID-19 levels.
Licenses, permits, fines and penalties revenues excluding building related activities were $5.4 million in business licenses, parking permit, and miscellaneous permit in fiscal year 2021-22 compared to $3.1 million in the non-building related revenues in the previous year. The 74.1% increase is the result of a moderately growing local economy and the significant decline due to COVID-19 in fiscal year 2019-20 and 2020-21 as well as that starting in fiscal year 2021-22, the building development related permits are reflected in a separate Building Development Services Fund.
Intergovernmental revenues were $3.1 million in fiscal year 2021-22 compared to $2.8 million in the previous year. The increase is due to a one-time ARPA employer credit because of the Supplemental Paid Sick Leave requirements during the pandemic.
MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)
16 Charges for service, which excludes building development related activities, totaled $37 million in fiscal year 2021-22 compared to $35 million in the prior fiscal year, an increase of 5.7%. This increase is largely attributed to the recovery in parks and recreation services and stadium related reimbursements.
Contributions in-lieu of taxes were approximately $27 million in fiscal year 2021-22, a $2 million increase from the prior fiscal year. The increase is due to an increase in the consumption and retail rates.
Interest and rent revenues were $12 million in fiscal year 2021-22, a $3 million decrease from the prior fiscal year due to lower interest rates and cash balances.
Expenditures
General Fund expenditures totaled $210 million for fiscal year 2021-22, down from the prior fiscal year total of $237 million. This amount excludes encumbrances, re-appropriations, and building related activities.
Salaries and benefits expenditures were $161 million in fiscal year 2021-22 compared with $184 million in fiscal year 2020-21 primarily due to the one-time transfer of certain public safety expenditures to the ARPA fund.
Other operating expenditures, including materials, services, and supplies, internal service fund charges and minor capital outlays, were $49 million in fiscal year 2021-22, a decrease of $4 million from the prior fiscal year. The decrease is primarily due to a $4 million construction loan disbursement to the Agrihood project developer in the previous fiscal year.
The uses of the other financing sources for fiscal year 2021-22 were $48 million, an $18 million increase from the prior fiscal year. The increase is primarily due to a one time building inspection reserve transfer to the newly established New Development Service Fee fund.
MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)
17 Fund Balance
As of June 30, 2022, total fund balance in the General Fund was $141 million, down $37 million from fiscal year 2020-21. Table 5A shows the breakdown of various components compared with the prior fiscal year.
2022 2021 Net Change
Nonspendable $ 14 7 $ (7) $
Restricted 26 23 (3)
Committed 40 24 (16)
Assigned 7 10 3
Unassigned 91 77 (14)
Total General Fund Balance 141 $ 178 $ (37) $
Table 5A
General Fund Balance for the Fiscal Year Ended June 30, 2022 (in millions)
General Fund Budgetary Highlights
The City’s budget is a flexible-spending plan, which commits resources to the accomplishment of City Council goals and objectives. During the fiscal year, the City Council took action to amend the adopted General Fund budget. A summary of the budgetary comparison schedule for the General Fund, located in the required supplementary information following the notes to the financial statements, is shown in the following table:
Original Budget Compared to Final Budget
Original Final
Budgeted Budgeted Net
Amount Amount Change
Revenues $ 250 $ 227 $ (23)
Expenditures $ 247 $ 224 $ (23)
Other financing sources (uses) $ (35) $ (40) $ (5)
General Fund Budget for the Fiscal Year Ended June 30, 2022 Table 5B
(in millions)
Adjustments to the original budget were based on the following:
The $23 million decrease in budgeted revenues is mainly due to a one-time transfer of the budgeted Coronavirus State and Local Fiscal Recovery funds to the American Rescue Plan Act MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)
18 Fund to account for the public safety salary expenditures to the extent of the revenue loss due to the pandemic.
The decrease in budgeted expenditures is primarily due to a $26 million budget expenditure transfer from the General Fund to the American Rescue Plan Act Fund to account for the public safety salary expenditures to the extent of the revenue loss due to the pandemic. The increase in budgeted Other Financing Uses is primarily due to a $4.3 million Building Inspection Reserve remaining balance transfer to the New Development Services Fee fund and $1.9 million transfer to the Public Right-of-Way ADA improvement project.
Final Budget Versus Actual
Final
Budgeted Actual
Amount Amount Variance
Revenues $ 232 227 $ 5 $
Expenditures $ 209 224 $ (15) $
Other financing sources (uses) (40) $ (40) $ - $
General Fund Final Budget Versus Actual for the Fiscal Year Ended June 30, 2022 Table 5C
(in millions)
The most significant differences between actual and final budgeted amounts are explained as follows:
The final budgeted revenues resulted in a $5 million positive variance mainly due to a $3 million increase in the ad valorem taxes and $2 million increase in TOT. Actual expenditures were $15 million lower than the final budget as a result of lower departmental costs. See the General Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget Actual (Non-GAAP Basis) for additional details.
Santa Clara Housing Successor
The Santa Clara Housing Successor (SCHS) Fund accounts for the activities related to the housing assets assumed by the City as Housing Successor to the Redevelopment Agency. The activities are governed by Community Redevelopment Law and must be used to provide housing for people with low and moderate incomes.
The SCHS’s revenues were approximately $6.5 million in fiscal year 2021-22. An increase of $5.2 million in prepaid lease revenues is primarily the result of development of land held many years for redevelopment. The other revenues of $1.1 million received were mostly loan repayments on low income loans. The general expenditures were $612 thousand, 10% lower than the prior year. Expenditures are for case management services offered to persons experiencing (or at risk of) homelessness, on-going administration and labor cost related to developing land held for development of affordable housing, and managing and monitoring assets.
MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)
19 Non-Major Governmental Funds
These funds are not presented separately in the Basic Financial statements but are individually presented in the Supplemental Information section of this report.
Financial Analysis of Enterprise Funds
Enterprise Fund net position totaled $1.5 billion at the end of fiscal year 2021-22, an increase of $149 million or 9.8% over the prior fiscal year. The increase is mainly from the Sewer Utility Fund and Electric Utility Fund. An $82 million increase in the Sewer Utility Fund is attributed to a $83 million increase in the Sewer Utility joint project equity with the City of San Jose. The $55 million increase in the Electric Utility Fund was due to a $29 million increase in developer contribution in various development projects in the City and a $13 million increase in the joint venture equity in the Electric Utility Fund.
The change in the equity in joint venture in fiscal year 2021-22 was a gain of $70 million, compared to a $27 million loss in the previous fiscal year. This increase of $97 million is mostly due to $83 million increased equity loss in the San Jose Santa Clara Joint Wastewater Treatment Facility project. Not including the joint venture activity and net change in the fair value of the investment, non-operating expenses in fiscal year 2021-22 were $18 million, a decrease of $1 million from the previous fiscal year.
Electric Utility
This fund accounts for the operation of the City’s electric utility services. Charges for Services revenues were $502 million in fiscal year 2021-22 compared with $453 million in fiscal year 2021-22. The main reason for this increase was due to a 3% rate increase effective January 1, 2022 and increased consumption.
Retail operating expenses were $526 million in fiscal year 2021-22 compared with $432 million in fiscal year 2020-21, an increase of $94 million or 21.8%. Operating expenses were higher primarily due to high prices for purchased resources.
Revenues of wholesale power operations increased to $36 million in the current fiscal year, up from $22 million in fiscal year 2020-21. The costs of wholesale power purchases increased to $18 million from $12 million in the prior fiscal year. The increase in wholesale power sales and purchases in fiscal year 2021- 22 was due to the overall high priced resource market.
Interest revenues was $6 million in fiscal year 2021-22, down from $7 million in fiscal year 2021-22 due primarily to a lower interest rate environment. Interest expense was $3 million in the current year, which decreased by $1 million from fiscal year 2020-21. The decrease of interest expenses in fiscal year 2021- 22 was due to lower interest payments on refunded Electric bonds.
The Electric Utility Fund had a net position of $971 million at June 30, 2022, an increase of $56 million from the prior fiscal year. Of this amount, $510 million was net investment in capital assets, $8 million was restricted for contractual obligation, and $453 million was unrestricted. The Electric Utility Fund is a participant in a number of joint ventures including Northern California Power Agency (NCPA), the Transmission Agency of Northern California (TANC), M-S-R Public Power Agency (MSR PPA), and MS-R Energy Authority (MSR EA).
MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)
20 Water Utility
This fund accounts for the operation of the City’s water utility services. Operating revenues were $51 million for fiscal year 2021-22 which is consistent with the prior fiscal year.
Operating expenses were $46 million in fiscal year 2021-22, compared to $45 million in fiscal year 2020-
21. The increase is primarily due to higher maintenance cost which includes repairs for aging wells and permit fees. The Water Utility Fund’s net position was $76 million at June 30, 2022.
Sewer Utility
This fund accounts for the maintenance of the City’s sewer lines and related facilities. Operating revenues of the Sewer Utility increased from $43 million in fiscal year 2020-21 to $59 million in the current year.
This increase is due to increased revenue earned for Sewer Conveyance fees, increased customer service revenue and reimbursements of operation and maintenance fees paid in the prior fiscal year.
Operating expenses were $30 million in fiscal year 2021-22, which was consistent with prior fiscal year.
The Sewer Utility Fund had a net position of $367 million at June 30, 2022. Of this amount, $32 million was net investment in capital assets, $281 million was restricted for joint venture capital projects and $54 million was unrestricted. The Sewer Utility, together with the City of San Jose, owns the San Jose/Santa Clara Regional Wastewater Facility which is administered by the City of San Jose. The Sewer Utility’s ownership share is approximately 19.461% of the assets, capital and operating costs. In fiscal year 2020- 21, the City of San Jose reported that the gain of the Utility’s equity in the Regional Wastewater Facility was $55 million (fiscal year 2021-22 amounts were not available at the time of this report).
Water Recycling
This fund accounts for the ongoing maintenance and operations of the City’s wastewater reclamation system. Operating revenues and expenses remained at the prior fiscal year amount of $6 million. The net position at June 30, 2022 is $6 million.
Santa Clara Stadium Authority (Stadium Authority)
These funds account for the development and operation of Levi’s Stadium. As of March 31, 2022, the Stadium Authority recorded approximately $58 million in operating revenue, $20 million more than prior year. This was mainly due to increase in charges for services from NFL games and smaller special events being held and increase in rents and licenses. Operating expenses were $50 million, increasing $24 million from the prior fiscal year. This increase is primarily because, pursuant to the August 31, 2022 Settlement Agreement between StadCo, ManagementCo, and Stadium Authority, Stadium Authority paid shared stadium expenses and other expenses from prior fiscal years’ that were previously withheld from payment. Net position at March 31, 2022 was $76 million, a decrease of $2 million from the previous fiscal year. Refer to Note 6.
MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)
21 Solid Waste
This fund accounts for the administration of the City’s garbage and rubbish collection service. Operating revenues were $35 million in fiscal year 2021-22, an increase of $8 million from the prior fiscal year.
The increase was due to a solid waste rate increase effective July 1, 2021. Operating expenses were $33 million in fiscal year 2021-22, an increase of 10% from fiscal year 2020-21. This was due to cost increase of refuse service providers. This fund has a deficit net position of $800 thousand.
Cemetery
This fund accounts for the Mission City Memorial Park’s operations. Operating revenues were $1.0 million, 18% higher than the prior fiscal year. Operating expenses remained consistent with the prior year at $1.4 million. Net position at June 30, 2022 was $2.5 million. This fund has historically run a deficit in its operation and capital activities, however, in the current fiscal year, the write-off of the advances of $7.1 million from the General Fund to the Cemetery Fund was approved by Council in May 2022. It was determined that the potential repayment of these advances is unlikely in the City’s ten-year General Fund Forecast due to the limited revenue sources from the Cemetery Fund.
Santa Clara Convention Center
This fund accounts for the operations of the Santa Clara Convention Center. Operating revenues were $8.5 million in fiscal year 2021-22, while operating expenses were $11.8 million. Net position at June 30, 2022 was $25 million. On November 1, 2019, the City entered into an agreement with Levy Premium Foodservice Limited Partnership (Levy) to manage the foodservice operations at the Convention Center and Levy agreed to pay an operating investment of $5.75 million to promote the economic development of the City. The investment is amortized on a straight-line basis over 15 years.
Sports and Open Space Authority (SOSA)
This fund accounts for the acquisition and preservation of open space within the City and the development of local sports activities. There were no operating revenues in fiscal year 2021-22 due to the expiration of the operating lease. Operating expenses were $9 thousand, with a net position at June 30, 2022 of $2 million.
MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)
22 CAPITAL ASSETS
At June 30, 2022, the City’s capital assets totaled $637 million in Governmental Activities, and $1.46 billion in Business-Type Activities, net of depreciation. Capital Assets are invested in a broad range of categories, as shown in Table 6.
2022 2021 Net Change
Governmental Activities:
Land $ 125 125 $ - $
Construction in progress 52 46 6
Land improvements 29 29 -
Buildings 217 217 -
Infrastructure 624 611 13
Machinery and equipment 85 84 1
Right-to-use leased Equipment 1 - 1
Less accumulated depreciation (496) (472) (24)
Totals 637 $ 640 $ (3) $
Business-Type Activities:
Land $ 19 19 $ - $
Construction in progress 64 109 (45)
Land improvements - - -
Buildings 918 919 (1)
Right-to-use leased building 3 -
Infrastructure 1,223 1,118 105
Machinery and equipment 26 24 2
Less accumulated depreciation (790) (744) (46)
Totals 1,463 $ 1,445 $ 18 $
Table 6
Capital Assets at June 30, 2022
(in millions)
The increase of $20 million in the Governmental Funds asset base was primarily due to $12.5 million in improvement in street and sidewalk/curb infrastructure and $0.5 million of Contributed Infrastructure from various developers. The $105 million increase in Enterprise Funds infrastructure is mainly due to $91 million in Electric infrastructure improvements in substation and transformer projects and a $9 million tank rehabilitation water project.
The Capital Improvement Project Budget for fiscal year 2021-22 and the Five-Year Financial Plan for fiscal year 2021-22 through fiscal year 2025-26 contain more detailed discussions of Capital Projects planned for the City of Santa Clara. See Note 9 to the financial statements for additional details on fiscal year 2021-22 capital assets.
MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)
23 DEBT ADMINISTRATION
Each of the City’s debt issues is discussed in detail in Note 10 to the financial statements. At June 30, 2022 the City’s debt was comprised of the following:
Balance Balance
Governmental Activity Debt: June 30, 2022 June 30, 2021 Net Change Refunding Certificates of Participation, Series 2013 12 $ 14 $ (2) $ Santa Clara Public Facilities Financing Corporation 1 - (1) Business-Type Debt:
Electric Utility Revenue Bonds, net of unamortized discount 44 53 (9) Electric Loan Agreements 103 99 (4)
Sewer Utility Loan Agreements 28 28 -
StadCo Subordinated Loan(1) 20 23 (3)
StadCo CFD Advance (1) 30 30 -
Stadium Funding Trust Loan(1) 230 244 (14)
Total Debt $ 496 463 $ (33) $
(1) Stadium Authority's long-term obligations are based on a March 31 fiscal year end.
Table 7
Outstanding Debt at June 30, 2022
(in millions)
Lease Agreement Between City of Santa Clara and City of
SUCCESSOR AGENCY
On December 29, 2011, the California Supreme Court upheld Assembly Bill 1X 26 (AB 26) that provided for the dissolution of all redevelopment agencies in the State of California. On February 1, 2012 all redevelopment agencies in California were effectively dissolved. The Successor Agency for the Santa Clara Redevelopment Agency is currently in the process of winding down the affairs of the former Redevelopment Agency.
See Notes 21 and 22 for further information on the Redevelopment Agency dissolution and Successor Agency activities.
ECONOMIC OUTLOOK
The economy of the City is discussed in the accompanying Transmittal Letter.
MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)
24 CONTACTING THE CITY’S FINANCIAL MANAGEMENT
This Annual Comprehensive Financial Report is intended to provide citizens, taxpayers, investors, and creditors with a general overview of the City’s finances. A separate Annual Financial Report for Silicon Valley Power is available upon request. Questions about this Report should be directed to the City of Santa Clara Finance Department, 1500 Warburton Avenue, Santa Clara, California, 95050, telephone (408) 615-2340.
Basic Financial Statements
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See accompanying notes to basic financial statements
27 CITY OF SANTA CLARA
GOVERNMENT-WIDE FINANCIAL STATEMENTS
STATEMENT OF NET POSITION AND STATEMENT OF ACTIVITIES
The Statement of Net Position and the Statement of Activities summarize the entire City’s financial activities and financial position. They are prepared on the same basis as is used by most businesses, which means they include all the City’s assets and deferred outflows of resources and all its liabilities and deferred inflows of resources, as well as all its revenues and expenses. This is known as the full accrual basis—the effect of all the City’s transactions is taken into account, regardless of whether or when cash changes hands, but all material internal transactions between City funds have been eliminated.
The Statement of Net Position reports the excess of the City’s total assets and deferred outflows of resources over the City’s total liabilities and deferred inflows of resources, including all the City’s capital assets and all its long-term debt. The Statement of Net Position presents similar information to the balance sheet format, but presents it in a way that focuses the reader on the composition of the City’s net position, by subtracting total liabilities and deferred inflows from total assets and deferred outflows.
The Statement of Net Position summarizes the financial position of all the City’s Governmental Activities in a single column, and the financial position of all the City’s Business-Type Activities in a single column; these columns are followed by a total column that presents the financial position of the entire City.
The City’s Governmental Activities include the activities of its General Fund, along with all its Special Revenue, Debt Service, and Capital Projects funds. Since the City’s Internal Service Funds service these Funds, their activities are consolidated with Governmental Activities, after eliminating interfund transactions and balances. The City’s Business-Type Activities include all its Enterprise Fund activities.
The Statement of Activities reports increases and decreases in the City’s net position. It is also prepared on the full accrual basis, which means it includes all the City’s revenues and all its expenses, regardless of when cash changes hands. This differs from the “modified accrual” basis used in the Fund financial statements, which reflect only current assets, current liabilities, available revenues and measurable expenditures.
The format of the Statement of Activities presents the City’s expenses first, listed by program, and follows these with the expenses of its business-type activities. Program revenues—that is, revenues which are generated directly by these programs—are then deducted from program expenses to arrive at the net (expense) revenue of each governmental and business-type program. The City’s general revenues are then listed in the Governmental Activities or Business-Type Activities column, as appropriate, and the Change in Net Position is computed and reconciled with the Statement of Net Position.
Both these Statements include the financial activities of the City, the Santa Clara Housing Authority, the Santa Clara Stadium Authority, the City of Santa Clara Sports and Open Space Authority, and the City of Santa Clara Public Facilities Financing Corporation, which are legally separate but are component units of the City.
See accompanying notes to basic financial statements
28 Governmental Business-Type
Activities Activities Total
ASSETS
Current Assets
Cash and investments (Note 7):
Pooled cash and investments $ 600,745,212 346,413,842 $ 947,159,054 $ Investments with fiscal agent 42,200,131 19 42,200,150
Receivables (net of allowance for uncollectible):
Accounts 137,313,513 6,922,685 144,236,198
Interest 2,024,673 1,272,522 3,297,195
Intergovernmental - 11,152,021 11,152,021
Leases receivable (Note 4) 294,014 3,273,612 3,567,626
Derivative financial instruments (Note 10D) - 15,462,094 15,462,094 Materials, supplies and prepaid 16,221,025 569,714 16,790,739 Land held for development (Note 2H) 7,103,770 - 7,103,770 Total Current Assets 814,260,662 376,708,185 1,190,968,847 Noncurrent Assets
Restricted Cash (Note 7) 10,409,276 23,674,093 34,083,369 Investment with fiscal agent (Note 7) 704,235 15,442,566 16,146,801 Derivative financial instruments (Note 10D) - 26,724,615 26,724,615 Deposits (Note 7) 19,518,954 - 19,518,954
Leases receivable, noncurrent (Note 4) 157,205,016 4,241,507 161,446,523 Internal balances (Note 8D) 4,055,736 (4,050,946) 4,790 Long term loans, net (Note 2BB) 109,866,605 - 109,866,605 Capital assets (Note 9):
Land and construction in progress 176,775,304 83,188,944 259,964,248 Capital assets being depreciated, net 460,691,042 1,378,244,281 1,838,935,323 Right-to-use leased assets, net of amortization (Note 9) 464,043 2,243,556 2,707,599 Investment in joint ventures (Note 12) 5,485,729 337,569,782 343,055,511 Other - 6,933,120 6,933,120
Total Noncurrent Assets 937,748,241 1,881,639,217 2,819,387,458 Total Assets 2,695,899,879 1,314,456,426 4,010,356,305
DEFERRED OUTFLOWS OF RESOURCES
Derivative instruments (Note 10D) - 164,564 164,564
Refunding 6,192,411 - 6,192,411
OPEB related items (Note 16) 2,101,869 1,666,272 3,768,141 Pension related items (Note 13) 68,528,151 17,821,271 86,349,422 Total Deferred Outflows of Resources 70,630,020 25,844,518 96,474,538
CITY OF SANTA CLARA
STATEMENT OF NET POSITION
June 30, 2022
Statement of Net Position
See accompanying notes to basic financial statements
29 Governmental Business-Type
Activities Activities Total
LIABILITIES
Current Liabilities
Accrued liabilities 73,938,880 41,195,390 115,134,270
Deposits - 3,922,251 3,922,251
Interest payable 7,579,143 229,551 7,808,694
Accrued compensated absences (Note 2K) 2,334,554 937,242 3,271,796 Unearned revenue, current portion 22,055,429 328,031 22,383,460 Landfill closure liability (Note 11) 743,000 - 743,000
Derivative financial instruments (Note 10D) - 164,564 164,564 Current portion of lease obligation (Note 4) 212,291 654,044 866,335 Long-term debt due within one year (Note 10) 980,000 33,992,474 34,972,474 Total Current Liabilities 140,064,776 49,202,068 189,266,844 Noncurrent Liabilities
Long-term portion estimated claims (Note 19) 23,919, - 000 23,919,000 Accrued compensated absences (Note 2K) 18,066,150 7,252,930 25,319,080 Landfill closure liabilities (Note 11) 5,462,986 - 5,462,986 Accrued liabilities 6,665,679 - 6,665,679
Unearned revenue 425,271,742 - 425,271,742
Long-term lease obligation (Note 4) 252,118 1,632,622 1,884,740 Long-term debt due after one year (Note 10) 10,614,3 416,734,697 94 427,349,091 Net OPEB liability due after one year (Note 16) 22,5 17,871,320 43,241 40,414,561 Net pension liability due after one year (Note 13) 3 100,639,137 47,165,409 447,804,546 Total Noncurrent Liabilities 422,560,312 981,531,113 1,404,091,425 Total Liabilities 1,121,595,889 471,762,380 1,593,358,269
DEFERRED INFLOWS OF RESOURCES
Derivative instruments (Note 10D) - 42,186,709 42,186,709 Refunding 1,537,064 - 1,537,064
Leases related (Note 4) 4,450,848 159,081,393 163,532,241 OPEB related items (Note 16) 1,271,887 1,604,372 2,876,259 Pension related items (Note 13) 25,104,892 92,967,447 118,072,339 Total Deferred Inflows of Resources 253,653,212 74,551,400 328,204,612 NET POSITION (Note 18)
Net investment in capital assets 1,079,606,407 625,871,952 1,705,478,359 Restricted for:
Capital projects and other agreements 111,776,171 324,662,275 436,438,446 Debt service - 493,129 493,129
Housing activities - 146,668,792 146,668,792
Community development - 29,261,410 29,261,410
Transportation - 2,118,981 2,118,981
Pension rate stabilization program 21,367,474 8,406,849 29,774,323 Other purposes - 5,604,479 5,604,479
Total Restricted Net Position 317,290,436 333,069,124 650,359,560 Unrestricted Net Position 112,921,577 (283,491,534) (170,569,957) Total Net Position $ 1,525,597,108 659,670,854 $ 2,185,267,962 $
CITY OF SANTA CLARA
STATEMENT OF NET POSITION
June 30, 2022
See accompanying notes to basic financial statements
30 Indirect Operating Capital
Expenses Charges for Grants and Grants and
Functions/Programs Expenses Allocation Services Contributions Contributions Governmental Activities:
General Administration 42,905,771 $ (5,230,301) $ 9,591,522 $ 28,298,690 $ 232,867 $ City Clerk (374,054) 1,545,540 26,669 - -
City Attorney (443,324) 2,522,173 - - -
Human Resources (1,607,048) 3,743,554 - - -
Finance (6,192,675) 16,518,530 33,475 - -
Public Works (2,228,910) 41,065,819 7,340,089 1,848,248 5,838,629 Parks and Recreation 20,519,782 - 2,048,964 235,919 -
Public Safety:
Police (23,396) 71,598,214 986,969 695,251 -
Fire - 58,116,819 6,881,002 2,590,544 -
Planning and Inspection 15,486,627 - 21,273,695 279,148 - Library - 10,925,423 14,780 112,392 -
Interest on long term debt 407,527 - - - -
Total Governmental Activities 285,355,779 (16,099,708) 48,197,165 34,060,192 6,071,496 Business-type Activities:
Utilities:
Electric 8,101,104 544,451,641 611,549,099 - -
Water 2,821,602 42,755,929 51,604,585 - -
Sewer 1,397,991 29,124,849 116,443,513 - -
Water Recycling 5,610,188 89,984 6,072,084 - -
Solid Waste 1,931,017 31,065,717 34,850,904 - -
Cemetery 129,713 1,219,867 1,023,685 - -
Sports and Open Space Authority 9,163 - - - -
Santa Clara Convention Center 11,829,475 - 8,527,284 - - Santa Clara Stadium Authority 63,679,755 1,628,297 58,444,137 - 1,085,574 Total Business-type Activities 729,746,584 16,099,708 888,515,291 - 1,085,574 Total $ - 1,015,102,363 $ 936,712,456 $ 34,060,192 $ 7,157,070 $ General Revenues:
Taxes:
Sales
Ad valorem property
Transient occupancy
Other
Contribution in lieu of taxes
Investment earnings
Net (decrease) in the fair value of investments
Equity in gains/(losses) of joint ventures
Rents and royalties
Gain/(loss) on retirement of capital asset
Other
Transfers (Note 8A)
Total General Revenues and Transfers
Change in Net Position
Net Position - beginning
Net Position - ending
Program Revenues
STATEMENT OF ACTIVITIES
CITY OF SANTA CLARA
For the year ended June 30, 2022
Statement of Activities
See accompanying notes to basic financial statements
31 Governmental Business-Type
Activities Activities Total
$ - 447,609 $ 447,609 $
- (1,144,817) (1,144,817)
- (2,078,849) (2,078,849)
- (2,136,506) (2,136,506)
- (10,292,380) (10,292,380)
- (23,809,943) (23,809,943)
- (18,234,899) (18,234,899)
- (69,892,598) (69,892,598)
- (48,645,273) (48,645,273)
- 6,066,216 6,066,216
- (10,798,251) (10,798,251)
(407,527) - (407,527)
- (180,927,218) (180,927,218)
58,996,354 - 58,996,354
6,027,054 - 6,027,054
85,920,673 - 85,920,673
371,912 - 371,912
1,854,170 - 1,854,170
(325,895) - (325,895)
(9,163) - (9,163)
(3,302,191) - (3,302,191)
(5,778,341) - (5,778,341)
143,754,573 - 143,754,573
143,754,573 (180,927,218) (37,172,645)
56,901,656 - 56,901,656
- 74,187,826 74,187,826
10,812,400 - 10,812,400
- 7,316,854 7,316,854
- 27,259,168 27,259,168
11,587,384 5,709,087 17,296,471
(26,594,046) (13,688,467) (40,282,513)
14,639,161 - 14,639,161
- 7,205,051 7,205,051
17 - 17
- 58,510,935 58,510,935
5,747,244 (5,747,244) -
5,379,760 228,467,266 233,847,026
149,134,333 47,540,048 196,674,381
1,376,462,775 612,130,806 1,988,593,581
$ 1,525,597,108 659,670,854 $ 2,185,267,962 $
Net (Expense) Revenue and Changes in Net Position
CITY OF SANTA CLARA
STATEMENT OF ACTIVITIES
For the year ended June 30, 2022
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33 CITY OF SANTA CLARA
FUND FINANCIAL STATEMENTS
GOVERNMENTAL FUNDS
The funds described below were determined to be Major Funds by the City in fiscal year 2021-22. Individual non-major funds may be found in the Supplementary section.
MAJOR GOVERNMENTAL FUNDS
GENERAL FUND
The General Fund accounts for resources and services traditionally associated with government. The General Fund provides administrative, financial, police protection, fire protection, community development, recreation, and maintenance services to the community and other funds. The General Fund accounts for revenues that have unrestricted uses and are not required legally or by contractual agreement to be accounted for in another fund.
SANTA CLARA HOUSING SUCCESSOR FUND
The Santa Clara Housing Successor Fund accounts for the activities related to the housing assets assumed by the City as Housing Successor to the former Redevelopment Agency. The activities are governed by Community Redevelopment Law and must be used to provide housing for people with low and moderate incomes.
See accompanying notes to basic financial statements
34 General Santa Clara
Fund Housing Successor
ASSETS
Cash and investments (Note 7):
Pooled cash and investments $ 8,378,469 125,712,806 $
Investments with fiscal agent - current - -
Restricted cash 21,367,474 -
Receivables (net of allowance for uncollectibles):
Accounts - 5,268,123
Interest - 1,272,522
Loans 97,382,941 4,150,074
Intergovernmental - 9,819,609
Due from other funds (Note 8B) - 136,068
Materials, supplies and prepaids - 284,364
Land held for development (Note 2H) 7,103,770 -
Investments with fiscal agent - noncurrent (Note 7) - - Advances to other funds (Note 8C) - 5,539,540
Leases Receivable (Note 4) 160,478,628 -
Other - 22,680
Total Assets $ 112,865,180 334,051,888 $
LIABILITIES
Accrued liabilities $ 159,722 25,455,418 $
Deposits - 3,922,251
Unearned revenue - 328,031
Advances from other funds (Note 8C) - -
Total Liabilities 159,722 29,705,700
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - Lease revenues (Note 4) 159,08 1,393 - Unavailable revenue - Loans 97,382,941 4,150,074
Total Deferred Inflows of Resources 163,231,467 97,382,941 FUND BALANCES (Note 18)
Nonspendable - 7,243,819
Restricted 15,322,517 23,291,211
Committed 23,985,038 -
Assigned - 9,843,795
Unassigned 76,750,858 -
Total Fund Balances 15,322,517 141,114,721
Total Liabilities, Deferred Inflows of Resources
and Fund Balances $ 112,865,180 334,051,888 $
CITY OF SANTA CLARA
GOVERNMENTAL FUNDS
BALANCE SHEET
June 30, 2022
Balance Sheet
See accompanying notes to basic financial statements
35 Non-Major Total
Governmental Funds Governmental Funds
$ 308,948,364 174,857,089 $
19 19
23,674,093 2,306,619
6,479,100 1,210,977
1,272,522 -
167,768,989 66,235,974
11,152,021 1,332,412
136,068 -
284,364 -
7,103,770 -
704,235 704,235
5,539,540 -
160,478,6 - 28
22,680 -
$ 693,564,393 246,647,325 $
$ 31,540,190 5,925,050 $
3,922,251 -
328,031 -
5,539,540 5,539,540
41,330,012 11,464,590
159,081,3 - 93
167,768,989 66,235,974
326,850,382 66,235,974
7,243,819 -
133,739,042 95,125,314
97,806,485 73,821,447
9,843,795 -
76,750,85 - 8
325,383,999 168,946,761
$ 693,564,393 246,647,325 $
BALANCE SHEET
June 30, 2022
CITY OF SANTA CLARA
GOVERNMENTAL FUNDS
This page intentionally left blank
See accompanying notes to basic financial statements
37 TOTAL GOVERNMENTAL FUND BALANCE $ 325,383,999
Amounts reported for Governmental Activities in the Statement of Net Position are different from those reported in the Governmental Funds above because of the following:
CURRENT LIABILITIES
The assets and liabilities below are due and payable in less than one year and more than 90 days and therefore are not reported in the Funds:
Current portion of accrued compensated absences (excluding Internal Service Funds) (2,263,079) Interest payable (229,412)
CAPITAL ASSETS
Capital assets used in Governmental Activities are not current assets or financial resources and, therefore, are not reported in the Governmental Funds. 637,466,346 Right to use leases assets used in governmental activities are not financial resources and therefore are not reported in the funds.
Right to use asset equipment net of amortization 464,043
LONG TERM ASSETS
Long-term receivable associated with lease agreements are not current assets or financial resources and, therefore, are not reported in the Governmental Funds 6,910,440 INVESTMENT IN NON-BUSINESS-TYPE JOINT VENTURE 5,485,729
DEFERRED OUTFLOWS OF RESOURCES
OPEB related (excluding Internal Service Funds) 1,998,621 Pension related (excluding Internal Service Funds) 67,423,892
ALLOCATION OF INTERNAL SERVICE FUND NET POSITION
Internal Service Funds are not governmental funds. However, they are used by management to charge the costs of certain activities, such as insurance and central services and maintenance, to individual governmental funds. The net current assets of the Internal Service Funds are therefore included in Governmental Activities in the following line items in the Statement of Net Position:
Cash and investments 37,465,478
Accounts receivable 443,585
Materials, supplies and prepaid 285,350
Deferred outflows OPEB related items 103,248
Deferred outflows pension related items 1,104,259
Accrued liabilities, including short-term portion of estimated claims (9,655,200) Long-term portion of estimated claims (23,919,000)
Compensated absences - current (71,475)
Compensated absences - long-term (553,118)
Internal balances (4,187,014)
Lease obligations (450,807)
Net OPEB liability (1,107,358)
Net pension liability (6,235,892)
Deferred inflows OPEB related items (78,808)
Deferred inflows pension related items (1,555,572)
LONG TERM LIABILITIES
The assets and liabilities below are not due and payable in the current period and, therefore, are not reported in the Funds:
Reserve against conditional grant balances (9,171,538)
Long-term debt (11,594,394)
Long-term liability associated with lease agreements (13,741) Non-current portion of accrued compensated absences
(excluding Internal Service Funds) (17,513,032)
Net OPEB liability (excluding Internal Service Funds) (21,435,883) Net pension liability (excluding Internal Service Funds) (340,929,517)
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues recorded in governmental funds financial statements resulting from activities in which revenues were earned but funds were not available are reclassified as revenues in Government-Wide Financial Statements. 119,038,143 (1,525,564)
(91,411,875)
NET POSITION OF GOVERNMENTAL ACTIVITIES $ 659,670,854
June 30, 2022
CITY OF SANTA CLARA
Pension related (excluding Internal Service Funds)
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET POSITION
OPEB related (excluding Internal Service Funds)
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position See accompanying notes to basic financial statements
38 General Santa Clara
Fund Housing Successor
REVENUES
Taxes:
Sales $ 56,901,656 $ -
Ad valorem 74,630,557 -
Transient occupancy 10,812,400 -
Other 6,988,597 -
Licenses, permits, fines, and penalties 5,362,982 -
Intergovernmental 3,057,483 -
Charges for services 1,845 36,784,544
Contributions in-lieu of taxes 27,259,168 -
Interest and rents 186,771 12,011,895
Net increase (decrease) in the fair
value of investments (13,688,467) -
Other 6,334,282 1,028,703
Total Revenues 6,522,898 221,149,518
EXPENDITURES
Current:
General Administration 12,312,123 17,114,341
City Clerk 1,617,989 -
City Attorney 2,681,388 -
Human Resources 3,836,743 -
Finance 16,575,834 -
Public Works 22,830,947 -
Parks and Recreation 18,908,901 -
Public Safety:
Police 62,147,962 -
Fire 50,109,742 -
Planning and Inspection 4,296,711 -
Library 9,896,689 -
Capital outlay - 66,134
Debt service (Note 10):
Principal payments - 4,402
Interest and fiscal fees - 386
Total Expenditures 12,312,123 210,088,169
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (5,789,225) 11,061,349
OTHER FINANCING SOURCES (USES)
Lease liabilites issused (Note 4E) - 18,035
Transfers in (Note 8A) 6,356,119 -
Transfers (out) (Note 8A) (54,122,963) -
Total Other Financing Sources (Uses) (47,748,809) -
NET CHANGE IN FUND BALANCE (36,687,460) (5,789,225)
Fund balances - beginning 21,111,742 177,802,181
Fund balances - ending $ 15,322,517 141,114,721 $
CITY OF SANTA CLARA
GOVERNMENTAL FUNDS
AND CHANGES IN FUND BALANCES
STATEMENT OF REVENUES, EXPENDITURES
For the year ended June 30, 2022
Statement of Revenues, Expenditures, and Changes in Fund Balances See accompanying notes to basic financial statements
39 Non-Major Total
Governmental Funds Governmental Funds
$ 56,901, - $ 656
74,630 - ,557
10,812 - ,400
7,316,854 328,257
16,181,866 10,818,884
39,928,834 36,871,351
47,193,585 10,407,196
27,259 - ,168
13,219,924 1,021,258
(13,68 - 8,467)
42,033,432 34,670,447
321,789,809 94,117,393
42,251,594 12,825,130
1,617, - 989
2,681, - 388
3,836, - 743
16,575 - ,834
28,158,189 5,327,242
19,889,814 980,913
77,589,642 15,441,680
62,202,840 12,093,098
16,173,581 11,876,870
10,011,172 114,483
19,261,284 19,195,150
2,009,402 2,005,000
497,990 497,604
302,757,462 80,357,170
19,032,347 13,760,223
18,035 -
56,105,044 49,748,925
(66,617,202) (12,494,239)
(10,494,123) 37,254,686
8,538,224 51,014,909
316,845,775 117,931,852
$ 325,383,999 168,946,761 $
CITY OF SANTA CLARA
GOVERNMENTAL FUNDS
STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
For the year ended June 30, 2022
This page intentionally left blank
See accompanying notes to basic financial statements
41 CITY OF SANTA CLARA
AND CHANGES IN FUND BALANCES TO THE GOVERNMENT-WIDE STATEMENT OF ACTIVITIES NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS $ 8,538,224 Amounts reported for governmental activities in the Statement of Activities are different because of the following:
ACCRUAL OF CURRENT ITEMS
The amounts below included in the Statement of Activities do not provide or (require) the use of financial resources over 90 days and therefore are not reported as revenue or expenditures in governmental funds (net change):
Current portion of accrued compensated absences (11,486)
CAPITAL ASSET TRANSACTIONS
Governmental Funds report capital outlays as expenditures. However, in the Statement of Activities the cost of those assets is capitalized and allocated over their estimated useful lives and reported as depreciation expense.
The capital outlay expenditures are therefore added back to fund balance 19,243,249 Depreciation expense is deducted from the fund balance
(Depreciation expense is net of Internal Service Fund depreciation of $2,699,239 which has already been allocated to service funds.) (21,490,805) Retirements of capital assets (net of Internal Service Fund retirement of $8,755) (1,966) Contributions of infrastructure improvements by developers and equipment are capitalized in the Statement of Activities, but are not recorded in the Governmental Fund Statements because no cash changed hands. 486,350
JOINT VENTURES - PROFIT FROM EQUITY 784,481
LONG TERM DEBT PROCEEDS AND PAYMENTS
Repayment of bond principal is an expenditure in the governmental funds, but in the Statement of Net Position the repayment reduces long-term liabilities.
Repayment of debt principal is added back to fund balance 2,005,000 Amortization of bond premium 54,297
ACCRUAL OF NON-CURRENT ITEMS
The amounts below included in the Statement of Activities do not provide or (require) the use of current financial resources and therefore are not reported as revenue or expenditures in governmental funds (net change):
Provision for reserve of conditional grants (509,126)
Non-current portion of accrued compensated absences (80,634) Interest payable 35,780
Unavailable revenue 16,122,940
Lease related expense (212)
OPEB related expense 719,729
Pension related expense 17,175,990
ALLOCATION OF INTERNAL SERVICE FUND ACTIVITY
Internal Service Funds are used by management to charge the costs of certain activities, such as equipment acquisition, maintenance, and insurance to individual funds.
The portion of the net revenue (expense) of these Internal Service Funds, arising out of their transactions with Governmental Funds, is reported with governmental activities, because they service those activities.
Change in Net Position - All Internal Service Funds, net 6,417,352 Change in Net Position of Internal Service Funds reported with Business-Type Activities (1,949,115) CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES $ 47,540,048 For the year ended June 30, 2022
RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Government-Wide Statement of Activities This page intentionally left blank
43 CITY OF SANTA CLARA
MAJOR PROPRIETARY FUNDS
Proprietary funds account for City operations financed and operated in a manner similar to a private business enterprise. The intent of the City is that the cost of providing goods and services be financed primarily through user charges. Individual non-major Proprietary funds may be found in the Supplementary section.
The City has identified the funds below as major proprietary funds in fiscal year 2021-22.
GAAP does not require the disclosure of budget versus actual comparisons regarding proprietary funds that are major funds.
ELECTRIC UTILITY FUND
This fund accounts for the operation of the City’s electric utility, a self-supporting activity that provides services on a user charge basis to residences and businesses.
WATER UTILITY FUND
This fund accounts for the operation of the City’s water utility, a self-supporting activity that provides services on a user charge basis to residences and businesses.
SEWER UTILITY FUND
The sewer utility fund accounts for the maintenance of the City’s sewer lines and related facilities. It is a self-supporting activity that provides services on a user charge basis to residences and businesses.
WATER RECYCLING UTILITY FUND
This fund accounts for the ongoing maintenance and operations of the City’s waste water reclamation system. It is a self-supporting activity that provides services on a user charge basis from the sale of nonpotable water for irrigation and landscaping.
SANTA CLARA STADIUM AUTHORITY FUND
The Santa Clara Stadium Authority Fund was established in 2011 to provide for development and operation of Levi’s Stadium (home of the NFL’s San Francisco 49ers). In November 2012, the Santa Clara Stadium Authority changed its fiscal year ending date from June 30th to March 31st to conform with the fiscal year of Stadium Funding Trust.
See accompanying notes to basic financial statements
44 Electric Water Sewer
Utility Utility Utility
ASSETS
Current assets:
Cash and investments (Note 7):
Pooled cash and investments $ 27,799,800 417,583,298 $ 74,308,645 $ Investments with fiscal agent - 15,196,469 -
Receivables (net of allowance for uncollectible):
Accounts 9,225,575 98,415,474 6,788,031
Interest 104,629 1,614,768 273,817
Leases receivable (Note 4) 27,429 239,156 27,429
Derivative financial instrument (Note 10D) 15,462,09 - 4 - Due from other funds (Note 8B) 468,932 2,686,894 750,234 Materials, supplies and prepaids 1,260,746 13,804,838 139,442 Total current assets 38,887,111 565,002,991 82,287,598
Noncurrent assets:
Restricted cash (Note 7) 1,570,550 6,146,358 1,350,785
Investment with fiscal agent (Note 7) 3,906,331 - -
Derivative financial instrument (Note 10D) 26,724,61 - 5 - Deposits (Note 7) - 19,518,954 -
Leases receivable, noncurrent (Note 4) 2,365,415 938,046 938,046 Right-to-use leased assets, net of amortization (Note 9) 2,243,556 - - Capital assets (Note 9):
Land 661,268 14,371,743 725,328
Buildings, infrastructure and land improvements 1,06 105,710,862 5,938,843 62,150,752 Equipment 3,869,659 9,941,798 5,005,789
Construction in progress 43,992 63,161,131 78,715
110,285,781 1,153,413,515 67,960,584
Less accumulated depreciation 520,317,069 51,056,292 27,862,251 Net capital assets 59,229,489 633,096,446 40,098,333
Investment in joint ventures (Note 12) 57,312,242 - 280,257,540 Total noncurrent assets 61,738,085 751,313,917 322,644,704 Total assets 100,625,196 1,316,316,908 404,932,302
DEFERRED OUTFLOWS OF RESOURCES
Derivative instruments (Note 10D) - 164,564 -
Refunding - 6,192,411 -
OPEB related items (Note 16) 232,871 1,217,486 116,059
Pension related items (Note 13) 2,490,626 13,021,377 1,241,282 Total deferred outflows of resources 20,595,838 2,723,497 1,357,341
CITY OF SANTA CLARA
PROPRIETARY FUNDS
STATEMENT OF NET POSITION
June 30, 2022
Business-type Activities-Enterprise Funds
PROPRIETARY FUNDS
Statement of Net Position
See accompanying notes to basic financial statements
45 Water Santa Clara Non-Major Internal Service
Recycling Stadium Authority Enterprise Funds
Utility (as of March 31, 2022) Funds TOTAL (Note 2B)
$ 55,762,515 7,168,313 $ 18,492,425 $ 601,114,996 $ 37,095,694 $ 27,003,662 - - 42,200,131 -
13,089,965 896,593 8,897,875 137,313,513 443,585
5,293 26,166 - 2,024,673 -
- - - 294,014 -
- - - 15,462,094 -
- - 280,954 4,187,014 34,980
1,015,999 - - 16,221,025 285,350
96,877,434 8,091,072 27,671,254 818,817,460 37,859,609
- 108,715 1,232,868 10,409,276 -
11,536,235 - - 15,442,566 -
- - - 26,724,615 -
- - - 19,518,954 -
- - - 4,241,507 450,514
- - - 2,243,556 -
- - 3,092,872 18,851,211 -
826,227,884 1,257,070 80,211,731 2,141,497,142 -
3,991,661 - 3,012,143 25,821,050 42,604,659
468,766 - 585,129 64,337,733 -
830,688,311 1,257,070 86,901,875 2,250,507,136 42,604,659 128,181,110 159,355 61,497,834 789,073,911 30,545,068
702,507,201 1,097,715 25,404,041 1,461,433,225 12,059,591 - - - 337,569,782 -
714,043,436 1,206,430 26,636,909 1,877,583,481 12,510,105 810,920,870 9,297,502 54,308,163 2,696,400,941 50,369,714 - - - 164,564 -
- - - 6,192,411 -
- 20,348 79,508 1,666,272 103,248
- 217,628 850,358 17,821,271 1,104,259
- 237,976 929,866 25,844,518 1,207,507
(continued)
Business-type Activities-Enterprise Funds
CITY OF SANTA CLARA
PROPRIETARY FUNDS
STATEMENT OF NET POSITION
June 30, 2022
See accompanying notes to basic financial statements
46 Electric Water Sewer
Utility Utility Utility
LIABILITIES
Current liabilities:
Accrued liabilities 4,634,627 60,306,912 198,722
Interest payable - 1,618,146 207,541
Unearned revenue - - -
Due to other funds (Note 8B) - - -
Accrued compensated absences (Note 2K) 774,797 114,575 20,184 Current portion of landfill closure liability (Note 11) - - - Current portion of long-term debt (Note 10) 13,580,0 - 00 778,152 Current portion derivative financial instruments (Note 10D) 164,564 - - Current portion of leases obligation (Note 4) 654,04 - 4 - Total current liabilities 4,749,202 77,098,463 1,204,599 Noncurrent liabilities:
Unearned revenue - - -
Long-term accrued liabilities - - -
Long-term portion estimated claims - - -
Long-term compensated absences (Note 2K) 5,995,836 886,650 156,196 Landfill closure liability (Note 11) - - -
Long-term debt (Note 10) - 129,196,165 26,859,162
Long-term leases obligation (Note 4) 1,632,622 - -
Net OPEB liability (Note 16) 2,497,620 13,057,945 1,244,769 Net pension liability (Note 13) 14,064,900 73,533,480 7,009,690 Total noncurrent liabilities 17,449,170 223,416,048 35,269,817 Total liabilities 22,198,372 300,514,511 36,474,416
DEFERRED INFLOWS OF RESOURCES
Derivative instruments (Note 10D) 42,186,709 - -
Refunding - 1,537,064 -
Leases ralated (Note 4) 939,890 2,571,068 939,890
OPEB related items (Note 16) 177,752 929,326 88,588
Pension related items (Note 13) 3,508,553 18,343,263 1,748,599 Total deferred inflows of resources 65,567,430 4,626,195 2,777,077 NET POSITION (Note 18)
Net investment in capital assets 59,229,489 511,984,541 32,461,019 Restricted for capital projects and other agreements 6,146,358 1,267,460 280,853,194 Unrestricted 16,027,177 452,699,906 53,723,937
Total net position $ 76,524,126 970,830,805 $ 367,038,150 $ Adjustment to report the cumulative internal balance for the net effect of the activity between the internal service funds and the enterprise funds over time.
Net position of business-type activities
CITY OF SANTA CLARA
PROPRIETARY FUNDS
STATEMENT OF NET POSITION
June 30, 2022
Business-type Activities-Enterprise Funds
See accompanying notes to basic financial statements
47 Water Santa Clara Non-Major Internal Service
Recycling Stadium Authority Enterprise Funds
Utility (as of March 31, 2022) Funds TOTAL (Note 2B)
1,689,217 1,315,319 5,794,083 73,938,880 9,655,200
5,753,456 - - 7,579,143 31
15,076,480 - 6,978,949 22,055,429 -
131,278 - - 131,278 4,221,994
- 1,093 26,593 937,242 71,475
- - 743,000 743,000 -
19,634,322 - - 33,992,474 -
- - - 164,564 -
- - - 654,044 207,893
42,284,753 1,316,412 13,542,625 140,196,054 14,156,593
425,271,742 - - 425,271,742 -
6,665,679 - - 6,665,679 -
- - - - 23,919,000
- 8,458 205,790 7,252,930 553,118
- - 5,462,986 5,462,986 -
260,679,370 - - 416,734,697 -
- - - 1,632,622 242,883
- 218,238 852,748 17,871,320 1,107,358
- 1,228,971 4,802,096 100,639,137 6,235,892
692,616,791 1,455,667 11,323,620 981,531,113 32,058,251 734,901,544 2,772,079 24,866,245 1,121,727,167 46,214,844 - - - 42,186,709 -
- - 1,537,064 -
- - - 4,450,848 -
- 15,531 60,690 1,271,887 78,808
- 306,573 1,197,904 25,104,892 1,555,572
- 322,104 1,258,594 74,551,400 1,634,380
449,429,602 1,097,715 25,404,041 1,079,606,407 12,059,591 41,272,892 108,715 3,420,505 333,069,124 -
(414,683,168) 5,234,865 288,644 113,291,361 (8,331,594) $ 76,019,326 6,441,295 $ 29,113,190 $ 1,525,966,892 3,727,997 $ (369,784)
$ 1,525,597,108
CITY OF SANTA CLARA
PROPRIETARY FUNDS
STATEMENT OF NET POSITION
June 30, 2022
Business-type Activities-Enterprise Funds
See accompanying notes to basic financial statements
48 Electric Water Sewer
Utility Utility Utility
Operating revenues:
Charges for services $ 50,330,756 502,373,290 $ 59,098,239 $ Rents, royalties and licensing - - -
Insurance refunds and other - - -
Mandated program receipts - 14,223,250 -
Renewable energy credits - 2,024,100 -
Wholesale resource sales - 36,048,240 -
Other 476,665 12,355,712 -
Total operating revenues 567,024,592 50,807,421 59,098,239 Operating expenses:
Salaries and benefits 6,166,503 41,165,220 2,970,148
Materials, services and supplies 461,111,832 38,028,241 26,035,549 General and administrative - - -
Mandated program disbursements 5,533,938 - -
Wholesale resources purchases 18,370,965 - -
Amortization- Right to use assets 673,067 - -
Depreciation 1,738,593 23,547,718 1,337,408
Total operating expenses 550,402,740 45,933,337 30,343,105 Operating income (loss) 16,621,852 4,874,084 28,755,134 Nonoperating revenues (expenses):
Interest revenue 278,666 6,065,834 1,013,248
Net change in the fair value of investments (21,010, (1,405,557) 694) (3,832,473) Rents and royalties 61,724 3,898,215 61,724
Other revenue 735,440 40,626,292 1,977,267
Interest expense - (3,117,699) (511,834)
Equity in income (losses) of joint ventures 14,639,1 - 61 55,306,283 Gain (loss) on retirement of assets 17 - -
Total nonoperating revenues (expenses) 41,101,109 (329,710) 54,014,215 Income (loss) before
contributions and transfers 57,722,961 4,544,374 82,769,349 Contributions - - -
Transfers in (Note 8A) 686,108 330,000 229,616
Transfers (out) (Note 8A) (267,066) (2,637,123) (613,118) Change in net position 4,963,416 55,415,838 82,385,847
Total net position - beginning 915,414,967 71,560,710 284,652,303 Total net position - ending $ 76,524,126 970,830,805 $ 367,038,150 $ Adjustment for the net effect of the current year activity between the internal service funds and the enterprise funds.
Change in net position of business-type activities
CITY OF SANTA CLARA
PROPRIETARY FUNDS
STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN FUND NET POSITION
For the year ended June 30, 2022
Business-type Activities-Enterprise Funds
Statement of Revenues, Expenses, and Changes in Fund Net Position See accompanying notes to basic financial statements
49 Water Santa Clara Non-Major
Recycling Stadium Authority Enterprise Internal Service Utility (as of March 31, 2022) Funds Total Funds
$ 11,720,968 6,066,691 $ 43,516,986 $ 673,106,930 $ 37,902,499 $ 46,723,169 - - 46,723,169 -
- - - - 641,577
- - - 14,223,250 -
- - - 2,024,100 -
- - - 36,048,240 -
- - 874,423 13,706,800 -
58,444,137 6,066,691 44,391,409 785,832,489 38,544,076
- 375,732 2,109,030 52,786,633 6,833,930
30,651,977 5,303,140 42,793,958 603,924,697 12,467,388
2,780,884 - - 2,780,884 14,835,276
- - - 5,533,938 -
- - - 18,370,965 -
- - - 673,067 207,930
16,979,469 25,141 1,571,639 45,199,968 2,699,239
50,412,330 5,704,013 46,474,627 729,270,152 37,043,763
8,031,807 362,678 (2,083,218) 56,562,337 1,500,313
4,128,756 99,991 889 11,587,384 37
- (345,322) - (26,594,046) -
- - 10,464 4,032,127 -
- 5,393 - 43,344,392 161,559
(14,895,722) - - (18,525,255) (716)
- - - 69,945,444 -
- - - 17 (8,755)
(10,766,966) (239,938) 11,353 83,790,063 152,125
(2,735,159) 122,740 (2,071,865) 140,352,400 1,652,438
1,085,574 - - 1,085,574 -
- - 8,086,270 9,331,994 6,133,161
- - (67,443) (3,584,750) (1,368,247)
(1,649,585) 122,740 5,946,962 147,185,218 6,417,352
77,668,911 6,318,555 23,166,228 (2,689,355)
$ 6,441,295 $ 76,019,326 $ 29,113,190 $ 3,727,997
1,949,115
$ 149,134,333
CITY OF SANTA CLARA
PROPRIETARY FUNDS
STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN FUND NET POSITION
For the year ended June 30, 2022
Business-type Activities-Enterprise Funds
See accompanying notes to basic financial statements
50 Electric Water Sewer
Utility Utility Utility
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers $ 49,984,803 494,683,368 $ 52,548,473 $ Payments to suppliers (39,405,272) (438,473,513) (20,252,955) Payments to employees for salaries and benefits (45, (7,078,843) 739,420) (3,565,934) Internal activity - payments to other funds - - -
Claims paid - - -
Rents, royalties and licenses received 3,823,785 68,572 68,572 Other receipts 890,231 48,415,239 1,939,610
Renewable energy credits - 2,024,100 -
Wholesale resource sales - 36,048,240 -
Resource trading escrow deposit (13,996,290) - -
Charges for joint project contributions - - (43,382,453) Net cash provided (used) by operating activities 68, 4,459,491 414,544 (12,644,687)
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
(Increase) in due from other funds (83,679) (105,256) (124,439) Increase in due to other funds - - -
Deposits to (withdraws from) pension rate stablization fund (662,638) (154,791) 37,657 Transfers in 686,108 330,000 229,616
Transfers (out) (267,066) (2,637,123) (613,118)
Cash Flows from Noncapital Financing Activities (3,0 158,995 53,440) (470,284)
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Acquisition and construction of capital assets, net (5,333,432) (50,687,039) (1,237,261) Proceeds from sale of assets 17 - -
Principal payments on capital debt (13,632,958) - (761,763) Interest paid on capital debt - (3,325,270) (518,627)
Cash Flows from Capital and Related
Financing Activities (5,333,415) (67,645,267) (2,517,651)
CASH FLOWS FROM INVESTING ACTIVITIES
Net decrease in the fair value of investments (21,01 (1,405,557) 0,694) (3,832,473) Interest and dividends 259,435 5,944,739 1,025,243
Fiscal agent investment sales - 16,294,079 -
Fiscal agent investment purchases (16,900,863) - -
Cash Flows from Investing Activities (15,672,739) (1,146,122) (2,807,230) For the year ended June 30, 2022
Business-type Activities-Enterprise Funds
CITY OF SANTA CLARA
PROPRIETARY FUNDS
STATEMENT OF CASH FLOWS
Statement of Cash Flows
See accompanying notes to basic financial statements
51 Water Santa Clara Non-Major
Recycling Stadium Authority Enterprise Internal Service Utility (as of March 31, 2022) Funds Totals Funds
$ 24,286,339 6,380,700 $ 39,855,211 $ 667,738,894 $ 38,670,765 $ (29,446,734) (5,107,399) (39,912,592) (572,598,465) (10,893,933) - (460,656) (2,555,396) (59,400,249) (7,180,662)
- - - - (525,273)
- - - - (11,416,300)
41,840,919 - 10,464 45,812,312 -
- 43,658 866,558 52,155,296 162,482
- - - 2,024,100 -
- - - 36,048,240 -
- - - (13,996,290) -
- - - (43,382,453) -
36,680,524 856,303 (1,735,755) 96,030,420 8,817,079
- - (25,010) (338,384) (2,105)
7,972 - - 7,972 340,489
- (38,265) - (818,037) -
- - 975,121 2,220,845 6,133,161
- - (67,443) (3,584,750) (1,368,247)
7,972 (38,265) 882,668 (2,512,354) 5,103,298
(1,064,907) - (303,398) (58,626,037) (2,169,296)
- - - 17 -
(17,353,477) - - (31,748,198) (207,639)
(14,374,662) - - (18,218,559) (716)
(31,974,140) - (303,398) (107,773,871) (2,378,367) (continued) - (345,322) - (26,594,046) -
4,123,966 97,982 889 11,452,254 37
(67,162,401) - - (50,868,322) -
65,864,017 - - 48,963,154 -
2,825,582 (247,340) 889 (17,046,960) 37
(continued)
Business-type Activities-Enterprise Funds
STATEMENT OF CASH FLOWS
For the year ended June 30, 2022
CITY OF SANTA CLARA
PROPRIETARY FUNDS
See accompanying notes to basic financial statements
52 Electric Water Sewer
Utility Utility Utility
Net increase (decrease) in cash and cash
equivalents (1,861,051) (17,956,902) (18,439,852)
Cash and cash equivalents at beginning of period 441 31,231,401 ,686,558 94,099,282 Cash and cash equivalents at end of period 423,729,6 $ 29,370,350 56 $ 75,659,430 $ Cash and cash equivalents:
Pooled cash and investments $ 27,799,800 417,583,298 $ 74,308,645 $ Restricted cash 1,570,550 6,146,358 1,350,785
Total cash and cash equivalents 423,729,656 $ 29,370,350 $ 75,659,430 $ Reconciliation of operating income (loss) to net cash
provided (used) by operating activities:
Operating income (loss) $ 4,874,084 16,621,852 $ 28,755,134 $ Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities:
(Decrease) Increase in lease obligation 616,466 - -
(Decrease) Increase in due to OPEB system (438,425) (83,859) (41,794) (Decrease) Increase in due to retirement system (4,7 (906,340) 38,491) (451,703) Amortization - - -
Depreciation 1,738,593 23,547,718 1,337,408
Change in assets and liabilities:
Receivables, net (826,594) (21,670,483) (801,038)
Prepaid expense - - -
Inventory (414,814) (1,668,043) -
Restricted Cash 154,791 662,638 (37,657)
Accrued liabilities (946,283) 24,350,379 45,824
Long-term portion estimated claims - - -
Compensated absences 77,859 602,716 (102,289)
Unearned revenue - - -
Other receipts 792,054 44,524,507 2,033,881
Wholesale trading escrow deposit (13,996,290) - -
Charges for joint project contributions - - (43,382,453) Net cash provided (used) by operating activities 68, $ 4,459,491 414,544 $ (12,644,687) $ NONCASH TRANSACTIONS:
Forgiveness of advances $ - - $ - $
Joint Ventures
Nonoperating income (loss) $ - 14,639,161 $ 55,306,283 $ Capital Contribution $ - - $ - $
For the year ended June 30, 2022
Business-type Activities-Enterprise Funds
CITY OF SANTA CLARA
PROPRIETARY FUNDS
STATEMENT OF CASH FLOWS
See accompanying notes to basic financial statements
53 Water Santa Clara Non-Major
Recycling Stadium Authority Enterprise Internal Service Utility (as of March 31, 2022) Funds Totals Funds
7,539,938 570,698 (1,155,596) (31,302,765) 11,542,047
48,222,577 6,706,330 20,880,889 642,827,037 25,552,931
$ 55,762,515 7,277,028 $ 19,725,293 $ 611,524,272 $ 37,094,978 $ $ 55,762,515 7,168,313 $ 18,492,425 $ 601,114,996 $ 37,095,694 $ - 108,715 1,232,868 10,409,276 -
$ 55,762,515 7,277,028 $ 19,725,293 $ 611,524,272 $ 37,095,694 $ $ 8,031,807 362,678 $ (2,083,218) $ 56,562,337 $ 1,500,313 $ - - - 616,466 207,930
- (7,328) 2,248 (569,158) (37,184)
- (79,194) (340,325) (6,516,053) (401,841)
- - - - -
16,979,469 25,141 1,571,639 45,199,968 2,699,239
(1,700,739) 314,009 (4,158,933) (28,843,778) 1,051,831
(1,015,999) - - (1,015,999) -
- - - (2,082,857) (84,432)
- 38,265 - 818,037 -
(1,375,735) 195,741 2,881,366 25,151,292 2,689,448
- - (136,146) (136,146) 937,000
- 1,598 27,857 607,741 92,293
- - 489,293 489,293 -
9,937,904 5,393 10,464 57,304,203 162,482
- - - (13,996,290) -
- - - (43,382,453) -
$ 36,680,524 856,303 $ (1,735,755) $ 96,030,420 $ 8,817,079 $ $ - - $ 7,111,149 $ 7,111,149 $ - $
$ - - $ - $ 69,945,444 $ - $
$ 1,085,574 - $ - $ 1,085,574 $ - $
For the year ended June 30, 2022
Business-type Activities-Enterprise Funds
CITY OF SANTA CLARA
PROPRIETARY FUNDS
STATEMENT OF CASH FLOWS
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55 CITY OF SANTA CLARA
FIDUCIARY FUNDS
These funds are used to account for assets held by the City as an agent for individuals, private organizations, and other governments. The financial activities of these funds are excluded from the City-wide financial statements, but are presented in separate Fiduciary Fund financial statements.
PRIVATE PURPOSE TRUST FUNDS
These funds are used to report resources of all other trust arrangements under which principal and income benefit individuals, private organizations, or other governments.
CUSTODIAL FUNDS
Custodial funds are used to account for assets held by the City for community or private organizations, or as an agent for its employees or for assessment districts. The financial activities of these funds are excluded from the City-wide financial statements, but are presented in separate Fiduciary Fund financial statements. Individual non-major Custodial funds may be found in the Supplementary section.
See accompanying notes to basic financial statements
56 tatement of Fiduciary Net Position
Private Purpose Custodial
Trust Funds Funds
ASSETS
Current assets
Cash and investments:
Pooled cash and investments (Note 7) 1,272,560 $ 793,166 $ Receivables (net of allowance for uncollectibles):
Interest and rent - 229,364
Leases receivable (Note 22) - 736,474
Total current assets 793,166 2,238,398
Noncurrent assets
Leases receivable-noncurrent (Note 22) 43,699,299 -
Investment with fiscal agent-noncurrent-noncurrent (Note 7) 2,859,692 - Land held for resale - 532,542
Total noncurrent assets - 47,091,533
Total Assets 793,166 49,329,931
LIABILITIES
Unearned revenues - 110,917
Due to other agencies - 630,000
Total Liabilities - 740,917
DEFERRED INFLOWS OF RESOURCES
Leases related (Note 22) - 43,617,753
Total deferred inflows of resources 43,617,753 -
NET POSITION
Held in trust for private purpose - 3,508,266
Restricted for individuals, organization and other governments 1,462,995 793,166 Total Net Position $ 793,166 4,971,261 $
CITY OF SANTA CLARA
FIDUCIARY FUNDS
STATEMENT OF FIDUCIARY NET POSITION
June 30, 2022
See accompanying notes to basic financial statements
57 Statement of Fiduciary Net Position
Private Purpose Custodial
Trust Funds Funds
ADDITIONS
Contributions:
Employee contributions $ 138,214 - $
Other plans 1,340,818 -
Gifts and bequest 675 -
Total contributions 1,479,707 -
Investment income:
Net change in fair value of investments (326,060) -
Interest and rents 6,139 3,102,511
Net investment income 2,776,451 6,139
Other - -
Total additions 1,485,846 2,776,451
DEDUCTIONS
General and administrative 79,756 82,401
Benefits paid 107,543 -
Pass through to the Stadium Authority - 1,085,575
Pass through to the County of Santa Clara 2,120,000 -
Total deductions 2,199,756 1,275,519
210,327 576,695
Net position - beginning 4,394,566 582,839
Net position - ending 4,971,261 $ 793,166 $
CITY OF SANTA CLARA
FIDUCIARY FUNDS
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
For the Year Ended June 30, 2022
Net increase (decrease) in fiduciary net
position
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CITY OF SANTA CLARA
NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2022
59 Notes to Basic Financial Statements
NOTE 1 – DEFINITION OF THE REPORTING ENTITY
The City of Santa Clara (City), also known as the Mission City, is a charter city incorporated in 1852 under the laws of the State of California. The City Charter establishes the Council/Manager form of government.
The City’s citizens elect a City Council of seven citizens, six councilpersons and a Mayor elected at-large, who serve a term of four years each, and who, in turn, appoint a City Manager.
The City is located in the County of Santa Clara, California, approximately 45 miles southeast of San Francisco. It is situated in the northern part of the County and occupies approximately 18.41 square miles.
The City's population of 130,127 accounts for 6.9% of the total Santa Clara County estimated population of
1.9 million.
The City provides a full range of municipal services, including police and fire, library, recreation, community services, public works, parks, sanitation, planning and community development, public improvements, electric, water and sewer services.
The accompanying basic financial statements present the financial activity of the City, which is the primary government presented, along with the financial activities of its component units. Although they are separate legal entities, blended component units are in substance part of the City’s operations and are reported as an integral part of the City’s financial statements. The City’s component units which are described below are all blended.
A. City of Santa Clara Sports and Open Space Authority
The City of Santa Clara Sports and Open Space Authority (SOSA) was created by the City Council in 1974 for the acquisition and development of open space within the City. The members of the City Council are also members of SOSA's Board of Directors and, as such, are authorized to transact business and exercise power to purchase, lease or otherwise obtain and dispose of real and personal property, to acquire, construct, maintain, repair, manage and operate real and personal property, including leasing to private operators for commercial purposes, surplus space which is not economical to use for open space planning. The City performs all accounting and administrative functions of SOSA. The operations of SOSA have been included in the Supplementary Information section in the Non-Major Enterprise Funds.
B. City of Santa Clara Public Facilities Financing Corporation The City of Santa Clara Public Facilities Financing Corporation (PFFC) was formed in 1997 for the purpose of issuing Certificates of Participation (COPs) to provide financing for the construction of the major City facilities. Members of the City Council are also members of the PFFC Board. Debt service on the COPs is secured by lease payments made by the City's General Fund to the PFFC for the use of the constructed facilities for public purposes. In accordance with lease agreements, the PFFC assigns lease payments received from the City to the trustee for payment to the certificate holders. The operations of PFFC have been included in the Supplementary Information section in the Non-Major Governmental Fund. The individual COPs and the related facilities are described in Note 10B.
C. Santa Clara Housing Authority
The Santa Clara Housing Authority (SCHA) was established by the City Council in 2011 to assume the responsibility of housing projects for the former Redevelopment Agency (former RDA). SCHA also assumes the responsibility for housing loans, which are long-term and were made under various programs,
CITY OF SANTA CLARA
NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2022
NOTE 1 – DEFINITION OF THE REPORTING ENTITY (continued) 60 for qualifying individuals and groups. The members of the City Council are also members of SCHA's Board of Directors and, as such, are authorized to transact business and exercise power to plan, engineer, and implement development projects. The City performs all accounting and administrative functions of SCHA.
The financial activities of SCHA have been reported in the accompanying Non-Major Governmental Fund financial statements.
D. Santa Clara Stadium Authority
The Santa Clara Stadium Authority (SCSA) was established by the City Council in 2011 to provide for development and operation of Levi’s Stadium. The members of the City Council are also members of SCSA's Board of Directors and, as such, are authorized to manage the stadium, transact business and exercise power to plan, engineer, and construct the stadium. The City performs all accounting and administrative functions of SCSA. The financial activities of SCSA have been reported in the accompanying Enterprise Fund financial statements.
On November 13, 2012, an amendment was made to the JPA Agreement to change SCSA’s fiscal year end date from June 30th to March 31st. As such, the financial activities reported for SCSA are as of fiscal year ended March 31, 2022. In addition, the annual financial report was audited by KPMG, an independent auditing firm, and a copy of the report can be found on the City’s website.
NOTE 2 - FINANCIAL STATEMENT PRESENTATION AND SIGNIFICANT
ACCOUNTING POLICIES
A. Basic Financial Statements
The City's Basic Financial Statements are prepared in conformity with accounting principles generally accepted in the United States of America (GAAP) as applied to government units. The Governmental Accounting Standards Board (GASB) is the acknowledged standard setting body for establishing accounting and financial reporting standards followed by governmental entities in the United States of America.
The significant accounting policies are described below:
Government-wide Financial Statements: The Statement of Net Position and the Statement of Activities display information about the primary government (the City) and its component units. These statements include the financial activities of the overall City government, except for fiduciary activities. Interfund Services provided and used are allocated to governmental and business-type activities, as appropriate. These statements distinguish between the governmental and business-type activities of the City. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. Business-type activities are financed in whole or in part by fees charged to external parties.
The Statement of Activities presents a comparison between direct expenses and program revenues for each segment of the business-type activities of the City and for each function of the City's governmental activities.
Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Program revenues include (a) charges paid by the recipients of goods or services offered by the programs, (b) grants and contributions that are restricted to meeting the operational needs of a particular program and (c) fees, grants and contributions that are restricted to financing
CITY OF SANTA CLARA
NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2022
NOTE 2 – FINANCIAL STATEMENT PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (continued)
61 the acquisition or construction of capital assets. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues.
Fund Financial Statements: The fund financial statements provide information about the City's funds, including fiduciary funds and blended component units. Separate statements for each fund categorygovernmental, proprietary, and fiduciary-are presented. The emphasis of fund financial statements is on major individual governmental and enterprise funds, each of which is displayed in a separate column. All remaining governmental and enterprise funds are aggregated and reported as non-major funds, except for fiduciary funds.
Enterprise funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with an enterprise fund's principal ongoing operations. The principal operating revenues of the City's enterprise funds are charges to customers for services. Operating expenses for the City's enterprise funds include the costs of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses.
B. Major Funds
Major funds are defined as funds that have either assets combined with deferred outflows of resources, liabilities combined with deferred inflows of resources, revenues or expenditures/expenses equal to 10% of corresponding totals for all governmental or enterprise funds and at least 5% of the aggregate amount to all governmental and enterprise fund for the same item. The General Fund is always a major fund. The City may also select other funds it believes should be presented as major funds. All other funds, called non-major funds, are combined, and reported in a single column, regardless of their fund-type.
The City reported the following major governmental funds in the accompanying financial statements:
General Fund - This is the City's primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund.
Santa Clara Housing Successor Fund - This fund accounts for the activities related to the housing assets assumed by the City as Housing Successor to the former Redevelopment Agency. The activities are governed by Community Redevelopment Law and must be used to provide housing for people with low and moderate incomes. Revenues received are primarily loan repayments on low income loans and investment earnings that are restricted for use on other low and moderate income housing loans and projects.
The City reported the following enterprise funds as major funds in the accompanying financial statements:
Electric Utility Fund - This fund accounts for the operation of the City's electric utility, a self-supporting activity that provides services on a user charge basis to residences and businesses.
Water Utility Fund - This fund accounts for the operation of the City's water utility, a self-supporting activity that provides services on a user charge basis to residences and businesses.
Sewer Utility Fund - This fund accounts for the maintenance of the City's sewer lines and related facilities. It is a self-supporting activity that provides services on a user charge basis to residences and businesses.
CITY OF SANTA CLARA
NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2022
NOTE 2 – FINANCIAL STATEMENT PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (continued)
62 Water Recycling Utility Fund - This fund accounts for the ongoing maintenance and operations of the City's wastewater reclamation system. It is a self-supporting activity that provides services on a user charge basis from the sale of non-potable water for irrigation and landscaping.
Santa Clara Stadium Authority Fund - The Stadium Authority was established to provide for development and operation of Levi’s Stadium.
The City also reports the following fund types:
Internal Service Funds - These funds account for maintenance of vehicles and communication equipment, information technology, public works capital project management, general liability, and workers' compensation claims, all of which are provided to other departments on a cost-reimbursement basis.
Fiduciary Funds - These funds account for assets held by the City in trust for community or private organizations, or as an agent for its employees or for assessment districts without city commitment. The financial activities of these funds are excluded from the City-wide financial statements, but are presented in separate Fiduciary Fund financial statements.
The Successor Agency to the Redevelopment Agency of the City of Santa Clara (Successor Agency) was created to serve as a custodian for the assets and to wind down the affairs of the former RDA. The Successor Agency is a separate public entity from the City, subject to the direction of an Oversight Board. The Oversight Board is comprised of seven-member representatives from local government bodies: two County of Santa Clara (County) representatives; the Mayor of the City of Santa Clara; the County Superintendent of Education; the Chancellor of California Community Colleges; one Santa Clara Valley Water District representative; and one former RDA employee appointed by the Mayor. The City performs all accounting and administrative functions of the Successor Agency. The financial activities of the Successor Agency have been reported in the accompanying basic financial statements in the Private Purpose Trust Fund. See Notes 21 and 22 for information regarding the Successor Agency.
C. Basis of Accounting
The government-wide financial statements and the fund category, proprietary, and fiduciary fund category financial statements are reported using the economic resources measurement focus and the full accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place.
Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available.
The City considers all revenues reported in the governmental funds to be available if the revenues are collected within sixty days after year-end. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general long-term debt, including lease liabilities as well as claims and judgments, and compensated absences, which are recognized as expenditures to the extent they have matured. General capital asset acquisitions, including entering into contracts giving the City right to use leased assets, are reported as expenditures in governmental funds. Proceeds of general long-term debt and financing through leases are reported as other financing sources.
CITY OF SANTA CLARA
NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2022
NOTE 2 – FINANCIAL STATEMENT PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (continued)
63 The City allocates certain indirect expenses incurred by the General Government activity to those activities that benefit from services received.
During the year ended June 30, 2022, the City implemented the following GASB Statements:
The GASB issued Statement No. 87 "Leases.” The objective of this Statement is to better meet the information needs of financial statement users by improving accounting and financial reporting for leases by governments. This Statement requires recognition of certain lease assets and liabilities for leases that previously were classified as operating leases and recognized as inflows of resources or outflows of resources based on the payment provisions of the contract. It establishes a single model for lease accounting based on the foundational principle that leases are financings of the right to use an underlying asset. Under this Statement, a lessee is required to recognize a lease liability and an intangible right-to-use lease asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resources, thereby enhancing the relevance and consistency of information about governments’ leasing activities. The provisions of this Statement were implemented during fiscal year 2022.
As a result, the beginning the balances of leases receivable and deferred inflows of resources related to leases were $209,176,421 as of July 1, 2021. The balances of the lease payable and intangible right-to-use asset were $3,593,102 as of July 1, 2021. The City restated and increased the balances in that amount, and the net effect on beginning net position and fund balance was zero. See the Leases disclosure in Note 4.
The GASB issued Statement No. 89 "Accounting for Interest Cost Incurred Before the End of a Construction Period.” The objectives of this Statement are to enhance the relevance and comparability of information about capital assets and the cost of borrowing for a reporting period and to simplify accounting for certain interest costs. This Statement requires that interest cost incurred before the end of a construction period be recognized as an expense in the period in which the cost is incurred for financial statements prepared using the economic resources measurement focus. As a result, interest cost incurred before the end of a construction period will not be included in the historical cost of a capital asset reported in the financial statements. The provisions of this Statement were implemented during fiscal year 2022. The implementation had no effect on the financial statements.
The GASB issued Statement No. 97 “Certain Component Unit Criteria, and Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans-An Amendment of GASB Statements No.14 and No. 84, and a Supersession of GASB Statement No. 32.” The objectives of this statement are to (1) increase consistency and comparability related to reporting of fiduciary component units in circumstances in which a potential component unit does not have a governing board and the primary government performs the duties that a governing board typically would perform; (2) mitigate costs associated with the reporting of certain defined contribution pension plans, defined contribution other postemployment benefit (OPEB) plans, and employee benefit plans other than pension plans or OPEB plans (other employee benefit plans) as fiduciary component units in fiduciary fund financial statements; and (3) enhance the relevance, consistency, and comparability of the accounting and financial reporting for Internal Revenue Code (IRC) Section 457 deferred compensation plans (Section 457 plans) that meet the definition of a pension plan and for benefits provided through those plans. This statement becomes effective for periods beginning after June 15, 2021. The implementation required a change to the disclosure in Note 15.
CITY OF SANTA CLARA
NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2022
NOTE 2 – FINANCIAL STATEMENT PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (continued)
64 The GASB issued Statement No. 99, Omnibus 2022. The primary objective of this Statement is to enhance comparability in reporting and improve the consistency of authoritative literature by addressing practice issues identified during implementation and application of certain GASB statements. The provisions of this Statement related to LIBOR, SNAP, and Leases, were implemented during fiscal year 2022.
The City is analyzing the effects of the following pronouncements and plans to adopt them by the effective dates:
The GASB issued Statement No. 91 “Conduit Debt Obligation.” The objective of this statement is to provide a single method of reporting conduit debt obligations by issuers and eliminate diversity in practices.
This statement becomes effective for periods beginning after December 15, 2021. The City is currently evaluating the impact on the financial statements.
The GASB issued Statement No. 93, Replacement of Interbank Offered Rates. The primary objective of this Statement is to address accounting and financial reporting implications that result from the replacement of an interbank offered rate (LIBOR). The provisions of this Statement will be implemented during fiscal year 2023. The removal of LIBOR as an appropriate benchmark interest rate is effective for reporting periods ending after December 31, 2021. The City is currently evaluating the impact on the financial statements.
The GASB issued Statement No. 94 “Public-Private and Public-Public Partnerships and Availability Payment Arrangements.” The objective of this statement is to address issues related to public-private and public-public partnership arrangements and to provide guidance for accounting and financial reporting for availability payment arrangements. This statement becomes effective for periods beginning after June 15, 2022. The City is currently evaluating the impact on the financial statements.
The GASB issued Statement No. 96 “Subscription-Based Information Technology Arrangements.” The objective of this statement is to provide guidance on the accounting and financial reporting for subscriptionbased information technology arrangements (SBITAs) for government end users. This statement becomes effective for periods beginning after June 15, 2022. The City is currently evaluating the impact on the financial statements.
The GASB issued Statement No. 99 “Omnibus 2022." The primary objective of this Statement is to enhance comparability in reporting and improve the consistency of authoritative literature by addressing practice issues identified during implementation and application of certain GASB statements. This statement becomes effective for periods beginning after June 15, 2022. The provisions of this Statement related to PPS, SBITAS, and financial guarantees and the classification and reporting of derivative instructions within the scope of Statement 53 are being currently being evaluated.
The GASB issued Statement No. 100 “Accounting Changes and Errors Corrections". The objective of this statement is to establish accounting and financial reporting requirements for (a) accounting changes and (b) the correction of an error in previously issued financial statements. This statement becomes effective for periods beginning after June 15, 2023. The City is currently evaluating the impact on the financial statements.
The GASB issued Statement No. 101 “Compensated Absences". The objective of this statement is to amend the existing requirements for the recognition of compensated absences liability. This statement becomes
CITY OF SANTA CLARA
NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2022
NOTE 2 – FINANCIAL STATEMENT PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (continued)
65 effective for periods beginning after December 15, 2023. The City is currently evaluating the impact on the financial statements.
D. Cash and Investments
While maintaining safety and liquidity, the City maximizes investment return by pooling its available cash for investment purposes. Unless there are specific legal or contractual requirements to do otherwise, interest earnings are apportioned among funds according to average monthly cash and investment balances. It is generally the City's intention to hold investments until maturity. City investments are stated at fair value (see Note 7).
Cash and cash equivalents for purposes of the statement of cash flows include pooled cash and investments and cash designated for construction. Transactions with City-wide cash management pools are similar to those with external investment pools; therefore, since pooled cash and investments have the same characteristics as demand deposits in that the City's individual funds and component units may withdraw additional monies at any time without prior notice or penalty, pooled cash and investments are considered essentially demand deposit accounts.
Cash and investments with fiscal agent, a bond reserve investment pool, and amounts classified as deposits are not considered cash and cash equivalents.
E. Interfund Transactions and Balances
During the course of operations, numerous transactions occur between individual funds for goods provided or services rendered. The related receivables and payables are classified as "due from other funds," and "due to other funds" in the fund financial statements. Long-term interfund receivables and payables are recorded as advances to/from other funds in the fund financial statements.
Transactions constituting reimbursements to a fund for expenditures/expenses initially made from it that are properly applicable to another fund, are generally recorded as expenditures/expenses in the reimbursing fund and as revenue in the fund that is reimbursed.
Internal balances represent the net interfund receivables and payables remaining after the elimination of all such balances within governmental and business-type activities, and are reported only in the governmentwide financial statements.
F. Inventory of Materials and Supplies
Inventory of materials and supplies is accounted for using the consumption method and is stated at average cost. Inventory consists of expendable supplies held for consumption by all departments of the City. The cost is recorded as an expenditure or expense in the appropriate fund at the time individual inventory items are withdrawn for use. The General Fund inventory amount is equally offset by a non-spendable fund balance, which indicates that it does not constitute available expendable resources.
CITY OF SANTA CLARA
NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2022
NOTE 2 – FINANCIAL STATEMENT PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (continued)
66 G. Restricted Assets
Restricted assets are monies or other resources, the use of which is restricted by legal or contractual requirements.
H. Land Held for Development
The Santa Clara Housing Successor, through execution of an assignment and assumption agreement with the City and the former RDA has assumed responsibility for housing projects and parcels of land purchased to develop or redevelop blighted properties within the Redevelopment areas. Such land parcels are accounted for as investments on the balance sheet at the lower of cost or net realizable value or agreed-upon sales price if a disposition agreement has been made with a developer.
Individual parcels which have experienced other than temporary fair value decline are written down to estimated current market value. No appreciation is recorded if the current estimated net realizable value of an individual parcel exceeds cost.
I. Capital Assets
All capital assets are valued at historical cost or estimated historical cost if actual historical cost is not available except for intangible right-to-use lease assets, the measurement of which is discussed in Note 2W below. Contributed capital assets are valued at their estimated acquisition value on the date contributed. The City's policy is to capitalize equipment with costs exceeding $5,000 and buildings, improvements and infrastructure with costs exceeding $20,000.
Major outlays for capital assets and improvements are capitalized as projects are constructed.
Public domain (infrastructure) assets, which include roads, bridges, curbs and gutters, streets and sidewalks, drainage systems, and traffic signals, have been capitalized and reported in the government-wide financial statements. Depreciation has been calculated on all capital assets, including infrastructure and the right-touse leased buildings and equipment, on a straight-line basis over the estimated useful lives of the assets.
Useful Lives
Years
Capitalization Threshold
Buildings and improvements 20-50 $ 20,000
Right-to-use leased buildings 20-50 20,000
Land improvements 20-50 20,000
Machinery and equipment 3-25 5,000
Right-to-use leased equipment 3-25 5,000
Infrastructure 10-50 20,000
Some capital assets may be acquired using Federal and State grant funds, or they may be contributed by developers or other governments. These contributions are accounted for as revenues at the time the capital assets are contributed.
CITY OF SANTA CLARA
NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2022
NOTE 2 – FINANCIAL STATEMENT PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (continued)
67 The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized. Improvements are capitalized and depreciated over the remaining useful lives of the related capital assets.
Capital assets and the related obligations acquired under lease/purchase agreements are capitalized and accounted for in accordance with current accounting standards.
J. Joint Ventures
The City participates in several joint ventures. In accordance with GAAP investments in these joint ventures are accounted for on the equity method (see Note 12). If the City's equity in net losses of joint ventures exceeds its investment, use of the equity method is suspended except to the extent that the City is obligated to provide further financial support or has guaranteed obligations of the joint ventures.
The City advances funds to certain of its joint ventures in the form of refundable advances, project advances and operating and maintenance advances. Refundable advances accrue interest at rates stated in the related agreements. Operating, maintenance and project advances are charged to operations when incurred.
Capitalized project costs are charged to operations in the event that a project is determined to be not economically feasible.
K. Compensated Absences
Amounts of vested or accumulated vacation leave and certain benefits that are not expected to be liquidated with expendable available financial resources are reported in the Governmental Activities portion of the government-wide financial statements only. Vested or accumulated vacation leave and benefits of proprietary funds are recorded as an expense and liability of those funds as the benefits accrue to employees. Vacation time is earned based on length of service in amounts ranging between 10 and 24 days per year. City employees are allowed to carry over unused vacation earned. The maximum amount of time that can be carried over varies, depending on the employee's rate of accrual, with an upper limit of 400 hours for most employees. Employees are paid for unused vacation and certain benefits upon separation from employment.
In accordance with GAAP a liability for sick leave and benefits is accrued using the vesting method. The vesting method provides that a governmental entity estimates its accrued sick leave liability based on the sick leave accumulated at the balance sheet date by those employees who currently are eligible to receive termination payments as well as other employees who are expected to become eligible in the future to receive such payments. Amounts of sick leave payments that are not expected to be liquidated with expendable available financial resources are reported in the Governmental Activities portion of the government-wide financial statements only. No expenditure is reported for these amounts in the governmental fund financial statements.
That portion of compensated absences that is unused reimbursable leave still outstanding following an employee's resignation or retirement at year end, is an expense and current liability to the respective fund(s) that an employee charges their time to.
CITY OF SANTA CLARA
NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2022
NOTE 2 – FINANCIAL STATEMENT PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (continued)
68 The accrual for compensated absences comprised the following at June 30, 2022. The long-term portion of governmental activities compensated absences is liquidated primarily by the General Fund.
Governmental Business-Type
Activities Activities Total
Beginning Balance 20,216,291 $ 7,718,577 $ 27,934,868 $ Additions 2,110,246 1,199,173 3,309,419
Payments (1,925,833) (727,578) (2,653,411)
Ending Balance 20,400,704 $ 8,190,172 $ 28,590,876 $
Current Portions 2,334,554 $ 937,242 $ 3,271,796 $
L. Risk Management
The City is self-insured up to $3 million to provide general liability protection. In addition to the City's selfinsurance, the City also maintains excess general liability with coverage up to $50 million.
The City is also self-insured up to $750,000 per claim for Workers' Compensation Claims. These selfinsurance programs are administered by outside agencies. The City also maintains excess workers' compensation insurance for workers' compensation claims over $750,000 per claim with coverage up to statutory limits with PRISM (formerly CSAC Excess Insurance Authority).
The City maintains property damage coverage through the Public Entity Property Insurance Program (APIP), which has a plan limit of $917 million. The City maintains boiler and machinery property coverage of $100 million per occurrence in excess of self-insured amounts varying from $25,000 to $100,000 per occurrence.
No claims settlement amount exceeded the City's insurance coverage in the past fiscal years.
The City also maintains a Faithful Performance, Crime Coverage Bond with a plan limit of $10 million through PRISM.
M. Long-Term Obligations
Long-term obligations are reported in the Governmental Activities portion of the government-wide financial statements. Long-term liabilities expected to be financed from proprietary fund operations are accounted for in those funds.
N. Pensions
For purposes of measuring the net pension liability and deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City of Santa Clara, California Public Employees’ Retirement System (CalPERS) plan (Plan) and additions to and deductions from the Plans’ fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.
CITY OF SANTA CLARA
NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2022
NOTE 2 – FINANCIAL STATEMENT PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (continued)
69 O. Accounting for Encumbrances
The City utilizes an encumbrance system of accounting wherein encumbrances outstanding at year end, for which the goods or services have not been received, are not reported as expenditures, but are reported as a component of the fund balance category available for subsequent year expenditures based on the encumbered appropriation authority carried over to the next fiscal year. The City Charter requires recording encumbrances as a charge against appropriations in the accounting period in which a purchase order is issued, rather than in the accounting period when goods or services are received.
Under the modified accrual basis of accounting, in accordance with GAAP, expenditures are recorded when the goods or services are received. Adjustments to convert expenditures from the modified accrual basis to the budgetary basis are reflected in the schedule of revenues, expenditures, and changes in fund balances - budget and actual (non-GAAP legal basis) (see Note 3 and Required Supplementary Information).
P. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position includes a separate section for deferred outflows of resources. Deferred outflows of resources represent a consumption of net assets that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The City has three items that qualify for reporting in this category: deferred outflow related to the refunding of debt, pension and OPEB.
In addition to liabilities, the statement of financial position includes a separate section for deferred inflows of resources. Deferred inflows of resources represent an acquisition of net assets that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. In the government‐wide financial statements the City reports deferred amounts related to derivative instruments, refunding of debt, leases and deferred amounts related to pension and OPEB.
Q. Net Position and Fund Balance Equity
Fund balances and net position are reported in classifications that comprise a hierarchy based primarily on the extent to which the City is bound to honor constraints on the specific purposes for which amounts in those funds can be spent. For governmental fund reporting, the City considers restricted fund balance to have been spent first when an expenditure is incurred, followed by committed, assigned and unassigned fund balances (in order of spending). For government-wide reporting, the City considers restricted net position to have been spent first when an expenditure is incurred, followed by unrestricted net position.
R. Bond Discounts/Premiums
In governmental funds, bond discounts and premiums are recognized in the current period. Bond discounts and premium for proprietary funds and entity-wide financial statements are deferred and amortized over the term of the bonds using the straight-line method of accounting.
CITY OF SANTA CLARA
NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2022
NOTE 2 – FINANCIAL STATEMENT PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (continued)
70 S. Property Taxes
The State of California Constitution Article XIII A provides that the combined maximum tax rate on any given property may not exceed 1% of its assessed value except for voter approved incremental property taxes adopted prior to the passage of Article XIII A and any additional amount for general obligation debt approved by voters subsequent to the passage of Article XIII A.
Assessed value is calculated at 100% of market value as defined by Article XIII A and may be increased by no more than 2% per year unless there is a new construction on the property or the property is sold or transferred. The State Legislature has determined the method of distribution of receipts from the 1% tax levy among the counties, cities, school districts and other districts.
Santa Clara County (County) assesses properties and bills and collects property taxes on behalf of the City as follows:
Secured Unsecured
Valuation dates January 1 January 1
Lien/levy dates January 1 January 1
Due dates 50% on November 1, 50% on February 1 Upon receipt of billing Delinquent as of December 10 (for November), April 10 (for February)
August 31
The term "unsecured" refers to taxes on property not secured by liens on real property and generally includes business use personal property.
The City participates in the Teeter Plan offered by the County whereby cities receive 100% of secured property tax levied in exchange for foregoing any interest and penalties collected on delinquent taxes.
Property taxes levied are recorded as revenue when received from the County. Property taxes expected to be collected within 60 days of the end of the fiscal year are recorded as revenue.
The City's net assessed valuation for the year ended June 30, 2022, was $52 billion, an increase of 4.30% compared to the previous year. The average tax rate was 1.19% per $100 of assessed valuation.
T. Contribution In-Lieu of Taxes
Contribution in lieu of taxes is a general revenue of the governmental funds. It is levied on receipts of the City-owned and operated Electric Utility (Silicon Valley Power) in accordance with the City Charter. NonCity owned and operated electric utilities pay a franchise fee, which is also a governmental activities general revenue source.
U. Special Assessment Districts with City Commitment
Recognition of revenue related to noncurrent receivables of special assessment district funds is deferred until such receivables become current. There is no reserve for delinquent receivables since liens exist against the
CITY OF SANTA CLARA
NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2022
NOTE 2 – FINANCIAL STATEMENT PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (continued)
71 related properties and hence the City's management believes the City will ultimately receive value equal to the delinquent receivables. Surplus fund balances remaining at the completion of a special assessment district project are disposed of in accordance with City Council resolutions and with the applicable assessment bond laws of the State of California.
V. Income Taxes
The City falls under the purview of Internal Revenue Code, Section 115 and corresponding California Revenue and Taxation Code provisions. As such, it is not subject to federal or state income taxes.
W. Lease Agreements
A lease is defined as a contract that conveys control of the right to use another entity’s nonfinancial asset (the underlying asset) as specified in the contract for a period of time in an exchange or exchange-like transaction. Examples of nonfinancial assets include buildings, land, vehicles, and equipment.
Lessee - The City is a lessee for noncancellable lease of equipment and buildings. The City recognizes a lease liability and an intangible right‐to‐use lease asset (lease asset) in the government‐wide financial statements.
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 as follows:
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 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.
CITY OF SANTA CLARA
NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2022
NOTE 2 – FINANCIAL STATEMENT PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (continued)
72 Lessor - The City is a lessor for noncancellable leases of land, building, and fiber optics. The City recognizes a lease receivable and a deferred inflow of resources in the government‐wide and governmental fund financial statements.
At the commencement of a lease, the City initially measures the lease receivable at the present value of payments expected to be received during the lease term. Subsequently, the lease receivable is reduced by the principal portion of lease payments received. The deferred inflow of resources is initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date. Subsequently, the deferred inflow of resources is recognized as revenue over the life of the lease term.
Key estimates and judgments include how the City determines (1) the discount rate it uses to discount the expected lease receipts to present value, (2) lease term, and (3) lease receipts as follows:
The City uses its estimated incremental borrowing rate as the discount rate for leases. The lease term includes the noncancellable period of the lease. Lease receipts included in the measurement of the lease receivable is composed of fixed payments from the lessee.
The City monitors changes in circumstances that would require a remeasurement of its lease and will remeasure the lease receivable and deferred inflows of resources if certain changes occur that are expected to significantly affect the amount of the lease receivable.
X. Arbitrage Rebate Liability
Arbitrage rebate liabilities, if any, are included in accrued liabilities.
Y. Revenue Recognition
Electric, Water, Sewer and Solid Waste Fund revenues are recognized based on cycle billings periodically rendered to customers. Revenues for services provided, but not billed at the end of a fiscal year, are recognized and accrued based on estimated consumption.
Governmental Activities revenues subject to accrual include taxes, intergovernmental revenues, interest and charges for services.
Z. Non-exchange Transactions
The City gives or receives value without directly receiving or giving equal value in exchange, including grants, entitlements, and donations. On the accrual basis, revenue from taxes is recognized in the fiscal year for which the taxes are levied or assessed. Revenue from grants, entitlements, and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied.
CITY OF SANTA CLARA
NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2022
NOTE 2 – FINANCIAL STATEMENT PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (continued)
73 AA. Financial Instruments
Financial instruments included in the City's basic financial statements, excluding cash and investments, consisted of accounts receivable, accrued liabilities and bonds payable. The carrying amounts are a reasonable estimate of fair value.
BB. Conditional Grants
The City has several programs under which it extends loans to qualifying individuals or groups for the purpose of improving the City's housing stock and/or its supply of low-and moderate-income housing.
Certain of these loans provide for the eventual forgiveness of the loan balance if the borrower complies with all the terms of the loan over its full term. The City accounts for these loans as conditional grants in the Citywide financial statements, and provides a reserve against their eventual forgiveness using the straight-line method over the life of the respective loan. As of June 30, 2022, conditional grants of $24,357,245 were offset by reserves of $9,171,538.
CC. Use of Estimates
The preparation of basic financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the basic financial statements and the reported amounts of revenues and expenditures/expenses during the reporting period. Actual results could differ from those estimates.
DD. Vehicle Registration Fee
On November 2, 2010, Santa Clara County voters approved Measure B, which levies a $10 annual vehicle registration fee (VRF). The statue requires that fees collected be used only to pay for programs and projects that have a relationship or benefit to the owners of motor vehicles paying the fee and are consistent with the regional transportation plan. All revenue collected by Santa Clara Valley Transportation Authority, administrator of VRF are allocated on a population basis to cities in Santa Clara County. The City has committed and used the revenue from Measure B towards various street maintenance and traffic signal timing upgrade projects. The Vehicle Registration Fees are reported in the Streets and Highways Improvement Capital Projects Fund.
CITY OF SANTA CLARA
NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2022
NOTE 2 – FINANCIAL STATEMENT PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (continued)
74 As of June 30, 2022, the balance of the Vehicle Registration Fees are as follows:
Vehicle Registration
Fee
Beginning Balance July 1, 2021 2,942,852 $
Intergovernmental revenue 799,227
Interest 41,774
Expenditures (1,037,364)
Ending Balance June 30, 2022 2,746,489 $
NOTE 3 – BUDGETS AND BUDGETARY ACCOUNTING
The budget of the City is a detailed operating plan that identifies estimated costs and activities in relation to estimated revenues. The budget includes: (1) the projects, services and activities to be provided during the fiscal year, (2) the estimated revenue available to finance the operating plan, and (3) the estimated spending requirements of the operating plan.
The budget process is the mechanism through which policy decisions are made, implemented and controlled.
The City Charter requires that the City establish a budgetary system for general operations and prohibits expending funds for which there is no legal appropriation. The City is required to adopt a budget on or before June 30 for the ensuing fiscal year that begins July 1. Activities of the General Fund, the Santa Clara Housing Successor, and the Maintenance Special Revenue Funds are included in the annual appropriated operating budget. The procedures followed to establish the budgetary data reflected in the accompanying required supplementary information to the basic financial statements are as follows:
1. The City Manager submits to the City Council a proposed operating budget for the fiscal year commencing the following July 1. This includes a Five-Year Financial Plan to aid in the planning and funding of operations and capital projects over the next five years.
2. Public hearings are conducted to obtain public comments.
3. The operating and capital budgets are legally enacted through the passage of a minute order.
From the effective date of the budget, the amounts stated therein as proposed expenditures become appropriations to the applicable governmental funds. The City Council may amend the budget by motion during the fiscal year. The legal appropriation control is established at the department level in each fund.
For select funds where expenditures are not allocated to a specific department, the appropriation control is established at the fund level. Transfers of funding between budgetary funds require City Council appropriation and approval. City Council approval is required for a budget amendment during the fiscal year which may include the use of reserves or fund balances, and approval of appropriations of grant monies. Per Article XIII, Section 1305 of the City Charter, appropriations lapse at the end of each fiscal year; therefore, unencumbered funds allocated for specific projects, donations, and grants require City Council appropriation for use in the following fiscal year.
CITY OF SANTA CLARA
NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2022
NOTE 3 – BUDGETS AND BUDGETARY ACCOUNTING (continued)
75 Budgetary transfers between accounts or expenditure category may be done through Finance Department or City Manager’s Office approval as long as they are conducted within the legal appropriation control limit set by the City Council.
Budget information is presented on a non-GAAP budgetary basis. Budgeted revenue amounts represent the original budget modified by adjustments authorized during the year. Budgeted expenditure amounts represent original appropriations adjusted for supplemental appropriations and transfers during the year.
Budget amounts in the schedules of revenues, expenditures and changes in fund balances-budget and actual, include supplemental appropriations approved by the City Council during the year.
For the actual GAAP basis financial statements, encumbered appropriations are not reported as expenditures, but are reported as a reservation of fund balance available for subsequent year expenditures, based on the encumbered appropriation authority carried over to the next fiscal year.
In addition to the annual Operating Budget, each year the City Council adopts a project length Capital Improvement Project budget biennially.
NOTE 4 – LEASE AGREEMENTS
In June 2017, the Government Accounting Standards Board (GASB) issued Statement No. 87, Leases.
GASB Statement No. 87 (GASB 87) increases the usefulness of governmental financial statements by requiring recognition of certain lease assets and liabilities for all leases, including those that previously were classified as operating leases and recognized as income by lessors and expenditures by lessees. GASB 87 replaces the previous lease accounting methodology and establishes a single model for lease accounting based on the foundational principle that leases are a financing of the right to use an underlying asset.
This Statement requires recognition of certain lease assets and liabilities for leases that previously were classified as operating leases and recognized as inflows of resources or outflows of resources based on the payment provisions of the contract. Under this Statement, a lessee is required to recognize a lease liability and an intangible right-to-use lease asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resources, thereby enhancing the relevance and consistency of information about governments’ leasing activities. The provisions of this Statement were implemented during fiscal year 2021-
22. The balances related to leases receivable and deferred inflows of resources as of June 30, 2022 are:
CITY OF SANTA CLARA
NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2022
NOTE 4 – LEASE AGREEMENTS (continued)
76 Leases Receivable
Deferred Inflow of
Resources
Governmental activities
General Fund 160,478,628 $ 159,081,393 $
Business-type activities
Electric Utility 2,604,571 $ 2,571,068 $
Water Utility 965,475 939,890
Sewer Utility 965,475 939,890
$ 4,450,848 4,535,521 $
Total leases receivable 165,014,149 $ 163,532,241 $
A discussion of the most significant leases follows:
A. Lease Receivable
During the current fiscal year, the City began leasing the two properties located at 1000 Lafayette Street, known as Peddler’s Plaza, and 900 Lafayette Street, known as Commerce Plaza. In 1971, the City entered long-term ground leases which expired in September 2021 and April 2022 respectively. These two properties have been long discussed as integral components of a long-term vision for rebuilding downtown. The planning process on a specific plan for downtown is not complete and it will be several more years before any redevelopment of the properties could begin to occur. The two buildings are occupied, and it would be beneficial to the City if there is ongoing occupancy of the structures.
The City extended their respective current leases under generally the same terms for a limited period (up to two years) to allow time for the City and its new management company to transition into their new roles. The City recognized $65,573 in lease revenue and $134 in interest revenue for Peddler’s Plaza, $312,782 in lease revenue and $798 in interest revenue for Commerce Plaza, during the current fiscal year related to these two leases.
As of June 30, 2022, the City’s receivable for lease payments was $109,330 for Peddler’s Plaza and $2,731,994 for Commerce Plaza. Also, the City has deferred inflow of resources associated with leases that will be recognized as revenue over the lease term. As of June 30, 2022, the balance of the deferred inflow of resources was $109,289 for Peddler’s Plaza and $2,731,897 for Commerce Plaza.
B. Original City Leases
Irvine Company Disposition and Development Agreement With Ground Lease (DDA) for Office Park Development
In April 2000, the former RDA entered into a Disposition and Development Agreement (DDA) with Ground Lease with The Irvine Company (Developer) for development of the site as an office/R&D complex. The DDA contemplated the former RDA obtaining title to the entire property from the City prior to entering into ground leases with the Developer. The site is subdivided into three parcels to accommodate the phased
CITY OF SANTA CLARA
NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2022
NOTE 4 – LEASE AGREEMENTS (continued)
77 development of the project. Only Parcel 2 was conveyed to the former RDA. Parcels 1 & 3 were always held by the City and not subject to terms of the subsequent RDA dissolution.
In March 2006, the DDA and the Ground Lease were amended to update the status of conditions precedent; amend the schedule of performance; and clarify terms and conditions relating to Parcel 1 and Parcel 3. In October 2012, the City entered into two ground leases with the Irvine Company for Parcels 1 and 3. The term of both leases is 80 years after the effective date of October 31, 2012, and therefore both leases shall expire on October 31, 2092. The rent commencement date is November 1, 2012. Under the terms of the leases the City will receive specified amounts for minimum rent subject to certain events or time periods and then inflationary adjustments at times specified in the leases. For the fiscal year ended June 30, 2022, the City recognized $1,313,281 in lease revenue and $2,119,663 in interest revenue for Parcel 1 and $633,191 in lease revenue and $1,021,983 in interest revenue for Parcel 3. As of June 30, 2022, the City’s receivable for lease payments for Parcel 1 was $92,976,087 and the balance of the deferred inflow of resources was $92,367,434. The City’s receivable for lease payments for Parcel 3 was $44,827,877 and the balance of the deferred inflow of resources was $44,534,419.
C. City Leases Pursuant to the Terms of the January 8, 2016 Settlement Agreement On March 8, 2011, the City and the former RDA adopted resolutions authorizing the execution of property conveyance agreements for the conveyance of certain real property owned by the former RDA. The agreements conveyed the properties subject to existing leases to the City. Properties included California’s Great America Theme Park, Techmart, Hyatt Regency, and Hilton Hotel.
The actions taken by the former RDA related to the asset transfers were validly authorized and conformed with the requirements of the Community Redevelopment Law as it existed at the time of the actions.
Pursuant to ABx1 26, the Redevelopment Dissolution Law, the State Controller’s Office is to review any asset transfers that occurred between a redevelopment agency and any other public agency after January 1, 2011 and if the assets have not been contractually committed to a third party and to the extent allowed by state and federal law, the Controller, after completing its review is to order the return of the assets to the Successor Agency. The Successor Agency received a Controller’s order on September 10, 2013 ordering the City to transfer the assets back to the Successor Agency. The validity of that order was the subject of litigation in Sacramento Superior Court (Sharma vs. City of Santa Clara). Additionally, on July 26, 2013, the Court granted the County of Santa Clara, the Santa Clara Unified School District, and the Santa Clara County Office of Education (Petitioners) motion for a preliminary injunction (temporary restraining order), restricting the City from selling, transferring, encumbering, spending, or otherwise depleting or wasting any real property interests received from the former RDA.
On January 8, 2016 the City executed a Settlement Agreement in Sharma vs the City of Santa Clara. This Settlement Agreement calls for the City to return to the Successor Agency certain properties that the former Redevelopment Agency transferred to the City prior to dissolution. The properties returned are as follows:
The Great America Theme Park Property, the Hilton Hotel Property, the North/South Parking Lots, the Gateway Parcel 2 Property, the Hyatt Hotel Property, The Techmart Property, and the Martinson Childcare Center Property. The Settlement Agreement requires the City to forego the long term lease revenues generated by the properties. Lease revenues collected from July 1, 2012 to June 30, 2016 have been passed on to the Successor Agency. Additional information concerning the Settlement Agreement can be found in Note 22.
CITY OF SANTA CLARA
NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2022
NOTE 4 – LEASE AGREEMENTS (continued)
78 The Settlement Agreement provides clarity that the City retains title to the main parking lot property for the Great America Theme Park and the Hyatt Hotel Ballroom Space. The agreement provides that rental income from these properties beginning July 1, 2015 is the property of the City.
California’s Great America Theme Park Parking Lot Lease The City and Cedar Fair entered into various agreements to operate and manage the theme park. As agreed in the Settlement Agreement, the Great America Theme Park Main Parking Lot is and always has been owned by the City and the City is entitled to any lease revenues generated from the Main Parking Lot after June 30, 2015. Pursuant to the Fourth Amendment of the ground lease, the City allows Cedar Fair to use certain City property adjacent to the Theme Park property for parking. Under the terms of the amended Ground Lease, Cedar Fair pays the City annually for use of such property for parking. For the fiscal year ended June 30, 2022, the City recognized $107,952 in lease revenue and $8,458 in interest revenue. As of June 30, 2022, the City’s receivable for lease payments was $702,335 and the balance of the deferred inflow of resources was $710,685.
Hyatt Ballroom Lease Agreement
In April 1985, the former RDA entered into various agreements for the development of a certain piece of land for the eventual operation of a high quality hotel and related facilities, including a ballroom. The resulting lease agreement pertaining to the City owned ballrooms for an initial term of 50 years. The Lessee has options to renew the lease for four additional periods of ten years each and one additional period of nine years. In 2013, Hyatt Equities, LLC. sold its interest to Inland American Lodging Acquisitions, Inc., the terms and conditions of the lease agreements remain in effect.
The minimum rent of the Ballroom lease is adjusted every three years according to the April 1985 agreement. Due to the COVID-19 impacts, the City agreed to waive and abate the ballroom lease from March 1 2020 to October 1, 2021. For the fiscal year ended June 30, 2022, the City recognized $327,702 in lease revenue and $101,344 in interest revenue. As of June 30, 2022, the City’s receivable for lease payments was $4,334,263 and the balance of the deferred inflow of resources was $4,205,506.
D. North South Parking Lot Lease
On May 22, 2018, the City Council authorized the City Manager to make an offer to purchase the Successor Agency owned North South Parcel and further authorized the execution of a Purchase and Sale Agreement for the property. The transfer of the property was settled on July 24, 2018. As part of the acquisition, the City accepted and assumed all of the duties, obligations, liabilities, commitments and covenants of Successor Agency accruing from and after the settlement date with respect to or arising under the lease with Cedar Fair.
For the fiscal year ended June 30, 2022, the City recognized $26,187 in lease revenue and $5,506 in interest revenue. As of June 30, 2022, the City’s receivable for lease payments was $486,230 and the balance of the deferred inflow of resources was $486,645.
E. Lease Liabilities
The City has recorded right to use leased assets as result of implementing GASB87. The right to use lease assets have been restated at the present value of the future minimum lease payments as of June 30, 2021. The assets are right to use assets for leased equipment in governmental activities and leased building in the
CITY OF SANTA CLARA
NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2022
NOTE 4 – LEASE AGREEMENTS (continued)
79 business-type activities. The lease liabilities are amortized on a straight-line basis over the terms of the related leases.
A summary of governmental activities and business-type activities lease payable transactions for the fiscal year ended June 30, 2022, are as follows:
Balance
June 30, 2021 Balance Current
(as restated) Additions Retirements June 30, 2022 Portion Governmental activities
Lease liabilites 676,479 $ 18,035 $ (230,105) $ 464,409 $ 212,291 $ Business-type activities
Lease liabilites 2,916,623 $ - $ (629,957) $ 2,286,666 $ 654,044 $ Total lease liabilities 3,593,102 $ 18,035 $ (860,062) $ 2,751,075 $ 866,335 $ The future principal and interest lease payments as of June 30, 2022, are as follows:
For the Year
Ending June 30 Principal Interest Principal Interest
2023 212,291 $ 852 $ 654,044 $ 21,893 $
2024 212,705 438 681,619 14,596
2025 39,413 102 710,181 6,920
2026 - - 240,822 553
Total 464,409 $ 1,392 $ 2,286,666 $ 43,962 $
Governmental activities Busines-type activities
NOTE 5 - ENTERPRISE FUND MANAGEMENT AGREEMENTS
A. Santa Clara Convention Center
During fiscal year 2018-19, the City performed a competitive bidding process to select a new management company for the Convention Center. On March 12, 2019, the City Council approved a resolution to enter into a new agreement with Global Spectrum, LP, doing business as Spectra Venue Management (Spectra), to manage and operate the Convention Center effective March 18, 2019. The initial term of this agreement began on March 18, 2019 and runs through June 30, 2024 with the option to extend the agreement for two subsequent terms of five (5) years by serving notice to Spectra no later than 180 days from the expiration of
CITY OF SANTA CLARA
NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2022
NOTE 5 – ENTERPRISE FUND MANAGEMENT AGREEMENTS (continued) 80 the term period. Under the terms of this agreement, Spectra will receive an annual base management fee for its’ operation of the Convention Center and an additional management fee if certain performance measures are met. For fiscal year ended June 30, 2022, the City paid Spectra $165,000 in management fees.
In May 2019, the City issued a request for proposal (RFP) to select a qualified company to provide Food and Beverage Operations for the Convention Center. The City entered into an agreement with Levy Premium Foodservice Limited Partnership (Levy) on November 1, 2019 to manage the foodservice operations at the Convention Center. The initial term of this agreement began on November 1, 2019 and expires on June 30, 2025. Upon expiration of the initial term, the City has the option to extend this agreement for two subsequent terms of five (5) years each by serving notice to Levy no later than 180 calendar days from expiration of term period. Under the terms of this agreement, Levy will receive management fees equal to
4.5% of gross receipts plus an additional fee of 8% of net receipts. For the fiscal year ended June 30. 2022, the City paid Levy $53,189 in fees.
In accordance with the November 1, 2019 executed agreement, Levy agreed to pay the City $5,750,000 consisting of $5,000,000 for an Operations Investment to be used for pre-opening expenses and other improvements to the foodservice facilities at the Convention Center, and a $750,000 Community Enrichment Investment to be spent on programs that drive community enrichment, develop local partnerships and promote economic development of the City. Both of these are amortized on a straight-line basis over 15 years. In the event that this agreement terminates for any reason prior to full amortization of the investment funds, the City is obligated to reimburse Levy for the unamortized amount.
NOTE 6 – SANTA CLARA STADIUM AUTHORITY
A. Credit Agreement
The Restated Credit Agreement dated as of June 19, 2013 was entered into by and among Stadium Funding Trust (FinanceCo), SCSA, and Goldman Sachs Bank. Under the Restated Credit Agreement, FinanceCo issued private placement notes and obtained a loan from a consortium of lenders and will loan SCSA up to $450 million and StadCo up to $400 million. Additionally, SCSA and StadCo entered into the Restated StadCo Obligations Agreement on June 19, 2013 under which StadCo will loan up to $500 Million to SCSA to pay costs associated with the development of Levi’s Stadium.
B. Management Agreement
The Stadium Management Agreement dated as of March 28, 2012 was entered into by and among the SCSA, Forty Niners Stadium Management Company LLC (Management), and StadCo. The SCSA and StadCo selected ManagementCo to provide management services for the Stadium on each entity’s behalf on a continual, year-round basis, including overseeing the day-to-day operations and maintenance of the Stadium.
The Stadium Management Agreement has an initial term of 25 years, plus a 15 year renewal option. On November 13, 2012 the First Amendment to the Stadium Management Agreement was approved. This First Amendment establishes incentive management fees, clarifies certain responsibilities of ManagementCo, preserves the amount of concessions income earned by SCSA and StadCo, and addresses liability issues regarding a possible Solar Site License Agreement with NRG.
CITY OF SANTA CLARA
NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2022
NOTE 6 – SANTA CLARA STADIUM AUTHORITY (continued)
81 The Stadium Management Agreement gives ManagementCo the responsibility to oversee the concessions agreements but not to enter into the concessions agreements without SCSA and StadCo’s prior consent. The Concessions Operating Agreement dated February 2018 was reviewed by SCSA and StadCo and entered into by and between ManagementCo and Levy Premium Foodservice Limited Partnership (Levy). The Concessions Operating Agreement has an initial term of 12 years which runs from April 16, 2018 through April 15, 2030 and it grants Levy the exclusive right to provide food and beverage services and merchandise services at all events at Levi’s Stadium.
C. Ground Lease
On February 28, 2012, the SCSA entered into a lease (the Ground Lease) with the City whereby the City leases the Stadium site to the SCSA. The Ground Lease was amended on June 19, 2013.
The Ground Lease has an initial term of 40 years. The first lease year commenced on the first day following the substantial completion of construction (August 1, 2014) and ended on the next following March 31st. The subsequent lease years will start on April 1st and end on the following March 31st. The SCSA will have five successive extension options, each four years in duration, which would commence following the initial term expiration date.
The Ground Lease provides that the City will receive a fixed ground rent (Fixed Ground Rent) of $180 thousand for the first year of Stadium operations payable by the Stadium Authority. Beginning in the second year of Stadium operations and annually thereafter through the tenth year of Stadium operations, the Fixed Ground Rent will increase annually by $35 thousand. Beginning in the 11th year of Stadium operations, Fixed Ground Rent will be increased to equal $1 million, and thereafter will be increased by $100 thousand every five years through the end of the initial term of the Ground Lease. If the term of the Ground Lease is extended, then, during the first extension term, the Fixed Ground Rent will equal $1.58 million; and if and to the extent the Ground Lease is further extended, the Fixed Ground Rent will be increased by $80 thousand every four years thereafter through the expiration of the term of the Ground Lease. While the Fixed Ground Rent payments vary over the course of the Ground Lease, Ground Lease expense is recorded on a straight-line basis. Therefore $979 thousand of ground lease expense was reported in each of the fiscal years ended March 31, 2022 and 2021.
The Ground Lease also provides that the City will receive a performance-based rent equal to 50% of the net income from non-NFL events, less certain credits including 50% of the Fixed Ground Rent, payable by the SCSA. If certain of the credits are not used within the year incurred or the next five succeeding years, the credits will expire.
The following schedule summarizes the minimum future payments due under this lease:
CITY OF SANTA CLARA
NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2022
NOTE 6 – SANTA CLARA STADIUM AUTHORITY (continued)
82 Fiscal Year Ground Lease
Ending March 31 Amount
2023 460,000 $
2024 495,000
2025 1,000,000
2026 1,000,000
2027 1,000,000
Thereafter 34,500,000
Total 38,455,000 $
D. Stadium Lease
On March 28, 2012, the SCSA entered into a lease with StadCo whereby the Stadium Authority leases the Stadium to StadCo. On June 19, 2013, the same parties entered into an Amended and Restated Stadium Lease Agreement (the Stadium Lease).
The Stadium Lease has an initial term of 40 years commencing on the first day following the substantial completion of construction (August 1, 2014) and includes five successive options to extend the term by four years each. The Stadium Lease is divided into two seasons:
the Tenant Season, which includes the NFL season (including preseason, regular season and postseason NFL games) and runs from August 1 through January 31; and the Stadium Authority Season, which runs from February 1 through July 31.
Pursuant to the Stadium Lease, the Stadium Authority and StadCo will be entitled to receive and collect separate revenues. Initially, rent payable by StadCo to the Stadium Authority was $24.5 million per year.
This amount was established pursuant to the Stadium Lease in connection with the take-out financing, which occurred on June 19, 2013. The Stadium Lease allowed for one opportunity to adjust the rent if operating or debt service expenses are either more or less than projected in determining the initial rent. Based on the changes to the projected operating and debt service expenses, the provisions for a one-time rent adjustment were triggered. At the Stadium Authority Board (Board) meeting held on March 22, 2016, the Board decided not to adjust the rent, and instead passed a motion to pursue the informal dispute resolution procedures and to proceed to the arbitration process if necessary. Thereafter, on May 3, 2016 StadCo filed for arbitration with the Stadium Authority.
On June 18, 2018, the arbitrator entered an Arbitration Award in favor of the Stadium Authority and against StadCo. This award adjusted the facility rent from $24.5 million to $24.76 million, an increase of $262,000.
This increase is retroactive to the first lease year resulting in a total amount owed to the Stadium Authority of $1.31 million for the first five lease years, through March 31, 2019. In addition to the adjustment to the facility rent, the Stadium Authority was entitled to reimbursement of its legal fees, determined by the arbitrator to be $2.28 million. The lease also provides for a fair market rent adjustment in year 33.
CITY OF SANTA CLARA
NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2022
NOTE 6 – SANTA CLARA STADIUM AUTHORITY (continued)
83 The Stadium Authority received $25.3 million and $17.3 million in stadium rent from StadCo in each of the fiscal years ended March 31, 2022 and 2021, respectively. There were three NFL events that were cancelled because of County COVID-19 restrictions, therefore; lease revenues in fiscal year 2021-22 were higher than the prior year.
The Stadium Authority may elect to expand the Tenant Season to consist of the entire lease year, from April 1 through the next succeeding March 31 (Stadium Authority Put Right), by delivering written notice to StadCo. The Stadium Authority Put Right may be exercised at any time during lease year 13, or at any time that the Management Company Revolving Loan balance exceeds $20 million. The expansion of the Tenant Season will be effective as of the applicable Tenant Season Expansion Date as set forth in the Stadium Lease.
Effective from and after the Tenant Season Expansion Date, and continuing through the remainder of the Stadium Lease term, the Tenant Season will consist of the entire lease year.
E. Trust Excess Cash Flow Funding
On April 1, 2020, the Stadium Authority completed the Trust Excess Cash Flow funding instructions and provided it to the FinanceCo and StadCo to complete fiscal year 2019-20’s year-end Trust Excess Cash Flow funding distribution per the Deposit and Disbursement Agreement. The Trust Excess Cash Flow instruction specifically excluded payments to the Revolving Loan of $6,300,653 because the Stadium Authority did not recognize this as an expense due to the fact that it is currently under litigation. StadCo deviated from the funding instructions and took the Excess Revenues from the distribution to pay off the Management Company Revolving Loan. The Stadium Authority was informed of this deviation in a letter dated April 27, 2020. On May 18, 2020, the Stadium Authority notified StadCo and the Trust that the deviation is in direct contravention of the Stadium Authority’s instructions to the Trustee with regards to the use of Excess Revenue. Subsequently, the Stadium Authority recorded a receivable from StadCo for $6,300,653 as of March 31, 2020.
In fiscal year 2020-21, ManagementCo continued to issue certificates of loan to the Stadium Authority for the suspended Shared Expenses of approximately $7,249,747, which covered expenses from March 2020 through March 2021, in fiscal year 2020-21. ManagementCo also issued a certificate of loan for $1,601,538 to pay for a portion of the $2,741,014 invoice from fiscal year 2019-20’s Non-NFL Events’ net loss reported by ManagementCo. The remaining balance of $1,139,476 in the Non-NFL Events’ net loss invoice was from the City’s Public Safety costs, which ManagementCo had requested that the City recoup the costs directly from the Stadium Authority. The Stadium Authority included the Non-NFL Events’ net loss draw of $1,601,538 in the overall dispute with ManagementCo.
On March 31, 2021, the Stadium Authority completed the Trust Excess Cash Flow funding instructions and provided it to the FinanceCo and StadCo to complete fiscal year 2020-21’s year-end Trust Excess Cash Flow funding distribution per the Deposit and Disbursement Agreement. The Trust Excess Cash Flow instruction requested that the Trust pay the StadCo Subordinated Loan in the amount of $5,796,711. However, StadCo deviated from the funding instructions and used $2,167,689 from the distribution to pay off the Management Company Revolving Loan instead. The Stadium Authority was informed of this deviation in a letter dated May 18, 2021. Subsequently, the Stadium Authority recorded a receivable from StadCo for $2,167,689 In fiscal year 2021-22, ManagementCo issued a certificate of loan to the Stadium Authority for $4,874,745, which includes unpaid Shared Expenses of $4,291,056 from April 2021 through March 2022, fiscal year 2020-21 Non-NFL events’ depreciation expense of $32,689, and fiscal year 2021-22 Non-NFL events’ net
CITY OF SANTA CLARA
NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2022
NOTE 6 – SANTA CLARA STADIUM AUTHORITY (continued)
84 loss of $551,000. ManagementCo also invoiced the Stadium Authority $193,522 for Revolving Loan interest and applied $1,319,976 in credits to the Revolving Loan for prior years expense true-ups. As a result, the amount outstanding in the Management Company Revolving Loan increased by $3,748,291, from $6,683,597 to $10,431,888 before StadCo deviated from the fiscal year 2021-22 Trust Excess Cash Flow funding instruction and fully paid off the Revolving Loan.
On March 31, 2022, the Stadium Authority completed the Trust Excess Cash Flow funding instructions and provided it to the FinanceCo and StadCo to complete fiscal year 2021-22’s year-end Trust Excess Cash Flow funding distribution per the Deposit and Disbursement Agreement. The Trust Excess Cash Flow instruction requested that the Trust pay the StadCo Subordinated Loan in the amount of $15,035,648. However, StadCo deviated from the funding instructions and used $10,431,888 from the distribution to pay off the Management Company Revolving Loan instead. The Stadium Authority was informed of this deviation in a letter dated April 13, 2022. Subsequently, the Stadium Authority recorded a receivable from StadCo for $10,431,888.
Stadium Authority objected to and disputes ManagementCo's draws and use of the Revolving Loan, as explained above, as well as the use of Stadium Authority's excess cash each year to pay Revolving Loan principal and interest. These disputes were part of the parties' arbitration matter. On August 31, 2022, Stadium Authority, StadCo and ManagementCo entered into a settlement agreement, which included terms addressing these disputes. Specifically, under section 11(b)(iii) of the Settlement Agreement, Stadium Authority agreed to recognize the prior unpaid expenses incurred from fiscal year 2019-20 through fiscal year 2021-22, and ManagementCo's prior unauthorized payments of the unpaid expenses through the Revolving Loan are treated as timely Stadium Authority payments, but without Stadium Authority agreeing to ManagementCo's actions or draws under the Revolving Loan F. ManagementCo Expense Settlement
On August 31, 2022, the Stadium Authority entered into a settlement agreement with StadCo and ManagementCo over disputes regarding the Operating and Management Expenses, Shared Expenses, and Capital Expenditures that were previously withheld for fiscal year 2020, 2021, and 2022. As part of the settlement, the Stadium Authority agreed to recognize the $15.8 million of unpaid ManagementCo expenses along with the $426 thousand interest expenses from the Revolving Loan. The Stadium Authority will not have to pay for the unpaid expenses since ManagementCo already paid for the expenses through the Revolving Loan draws and year-end excess cash. Additionally, the Stadium Authority will reverse the receivable balances previously recorded for the year-end excess cash diversions that ManagementCo took to pay off the Revolving Loan balance. As part of the settlement, Stadium Authority did not confirm or agree to ManagementCo's prior actions or draws under the Revolving Loan. The unpaid expenses were properly recognized in fiscal year ending March 31, 2022.
In addition, the Stadium Authority agreed to discontinue the current practice of reviewing the prevailing wage documentations and sending it off to a labor consultant to review and approve prior to payments. The Stadium Authority will rely on ManangementCo’s new internal Prevailing Wage Laws compliance policy and procedures and process the Capital Expenditures invoice payments as they come in. The Stadium Authority also agreed to restart paying the Operating and Management Expenses and Shared Stadium Expenses based on the approved budget and have ManagementCo provide a year-end true up of the actual expenses at the end of each fiscal year.
CITY OF SANTA CLARA
NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2022
85 NOTE 7 – CASH AND INVESTMENTS
A. Pooled Cash and Investments
The City pools cash from all sources and all funds except restricted cash and investments with fiscal agent.
Allocable portions of the pooled portfolio for each fund type are reported under the captions “Pooled cash and investments” and “Restricted Cash”. Interest income earned on pooled cash and investments is allocated to various funds based on average cash balances of each fund unless there are specific legal or contractual requirements to do otherwise.
Total cash and investments of the City was $1,064 million as of June 30, 2022. This amount includes the City’s pooled cash and cash investments of $1,002.8 million, and cash and investments with fiscal agents of $61.2 million.
Of the City's total cash and investments, the following shows the allocation as presented on the accompanying statements of net position:
Statement of Net Position
Pooled cash and investments 947,159,054 $
Investments with fiscal agent - current 42,200,150
Restricted cash 34,083,369
Deposits 19,518,954
Investments with fiscal agent - noncurrent 16,146,80 1
Fiduciary Funds
Pooled cash and investments 2,065,726
Investments with fiscal agent - noncurrent 2,859,692
Total Cash and Investments 1,064,033,746 $
The City’s cash and investments balances in Governmental Funds, Enterprise Funds, Internal Service Funds, Private Purpose Trust, and Fiduciary Funds were as follows:
Governmental Enterprise
Internal
Service Fiduciary
Funds Funds Funds Funds Total
Pooled cash and
investments $ 601,114,996 308,948,364 $ 37,095,694 $ 2,065,726 $ 949,224,780 $ Investments with fiscal
agent - current 42,200,131 19 - - 42,200,150
Restricted cash 23,674,093 10,409,276 - - 34,083,369
Investments with fiscal
agent - noncurrent 15,442,566 704,235 - 2,859,692 19,006,493 Deposits - 19,518,954 - - 19,518,954
Total cash and
investments $ 688,685,923 333,326,711 $ 37,095,694 $ 4,925,418 $ 1,064,033,746 $
CITY OF SANTA CLARA
NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2022
NOTE 7 – CASH AND INVESTMENTS (continued)
86 B. Investments Authorized by the California Government Code and the City’s Investment Policy
The City’s investment strategy is to invest cash not required for current obligations in U.S. government securities, federal government agency securities, highly rated money market instruments and other investments in accordance with the City’s investment policy for a maximum term of five years for the General Fund portfolio. The City Council has authorized the purchase of securities with maturities greater than five years, specifically for the Electric Cost Reduction Account. This strategy allows the City to minimize its exposure to credit, market, and liquidity risk while maintaining a reasonable return on its portfolio.
The City’s investment policy, in compliance with the City of Santa Clara Charter, Article IX, Section 904 (d) and (h), and the California Government Code authorizes the City to invest in securities that are consistent with the City’s cash management strategy and long-term goals and objectives. The City is authorized to invest in the following types of instruments, and the table also identifies certain provisions of the California Government Code, or the City’s investment policy where it is more restrictive:
CITY OF SANTA CLARA
NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2022
NOTE 7 – CASH AND INVESTMENTS (continued)
87 Authorized Investment Type
Maximum
Maturity
Minimum
Credit
Quality
Maximum
Percentage of
Portfolio
Maximum
Investment In One
Issuer
U.S. Treasury Obligations 7 years N/A 100% 100%
U.S. Agency Securities (A) 7 years Top three
ratings
categories
80%(B) 40%
Negotiable Certificates of Deposit 5 years A/A1 30% 5%
Bankers Acceptances 180 days N/A 25% 5%
Commercial Paper 270 days A1 / P1 25% 5% (C)
California Local Agency Investment Fund N/A N/A None $75M Per A/C Repurchase Agreements 60 days N/A 50% 20%
Reverse Repurchase Agreements
(requires City Council approval)
92 days N/A 20% 10%
Municipal Obligations 7 years N/A 20% 5%
Medium Term Corporate Notes 5 years Top three
ratings
categories
25% 5%
Mutual Funds / Money Market Funds N/A Top rating
category
20% 10%
Joint Power Authority Investment Pools N/A Top rating
category
100% 100%
Supranational Obligations 5 years AA 20% 10%
Asset-Backed Securities 5 years AA 10% 5%
Non-Negotiable Certificates of Deposit 5 years N/A 10% 5% Mortgage-Backed Securities 12 years (D) AA 15% 5%
(A) Securities issued by the Federal Farm Credit Bank (FFCB), the Federal Home Loan Bank (FHLB), (B) Callable securities are limited to 30% of the portfolio. (C) No more than 10% of the outstanding commercial paper of any single issuer. time of purchase for Mortgage-Backed Securities (MBS). Maximum Final Maturity for MBS's = 30 years with balloon payments.
Corporation (FHLMC), local agencies and other U.S. government -sponsored enterprises. the Federal National Mortgage Association (FNMA), and the Federal Home Loan Mortgage (D) Maximum Weighted Average Life with Current Public Securities Association Assumptions =12 years at
CITY OF SANTA CLARA
NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2022
NOTE 7 – CASH AND INVESTMENTS (continued)
88 C. Investments with Fiscal Agents
The City invests bond proceeds restricted for construction in instruments that are stated in the Investment Policy and in various return-guaranteed investment agreements. These investments are invested in accordance with bond indentures and the maturities of each investment should not exceed the final maturity of each bond. Bond proceeds investments are reported monthly to the City Council.
The City also maintains required amounts of cash and investments with trustees or fiscal agents under the terms of certain debt issues. These funds are unexpended bond proceeds or are pledged reserves to be used if the City fails to meet its obligations under these debt issues. The California Government Code 53601 (L) allows these funds to be invested in accordance with the statutory provisions governing the issuance of those bonds, indebtedness, other agreements, or certificates of participation in accordance with the ordinance, resolution, indenture, or agreement of the local agency providing for the issuance.
Former RDA and Electric Reserve Fund bond proceeds restricted for construction projects are invested and held by the trustee as fiscal agent investments. All funds have been invested as permitted under the Code.
These investments are usually scheduled to mature when cash is needed to fulfill the requirements of the underlying bond and trust agreements.
The City also invests funds in the Bentzien Trust in accordance with the investment policy of the Trust that allows investment in cash and short-term investments (up to 20%), fixed income investments including U.S.
Government, U.S. Government Agency, Asset and Mortgage Backed securities, debt issued by U.S.
Corporations and fixed income mutual funds (30% to 60% of portfolio’s aggregate fair value), and equity securities or mutual funds (40% to 70% of portfolio’s aggregate fair value). Investments in U.S. Corporate debt shall be limited to an amount per issuer not to exceed 10% of the aggregate fair value of the portfolio, and upon initial purchase by the Adviser, must be of investment grade as rated by Moody’s and/or Standard and Poor’s rating services. The maximum maturity of an individual bond shall not exceed fifteen years and the average maturity shall not exceed ten years. Individual equity purchases shall have an equivalent securities rating of B- or better. Individual equity purchases shall not exceed five percent of the portfolio’s aggregate fair value.
D. Pension Rate Stabilization Program
In February 2017, the City Council approved a Pension Rate Stabilization Program, (PRSP) Trust administered by Public Agency Retirement Services (PARS). The PRSP is an irrevocable trust and qualifies as an Internal Revenue Section 115 trust. This trust will assist the City in mitigating the CalPERS contribution rate volatility. Investments of funds held in Pension Rate Stabilization Program (PRSP) are governed by the Investment Guideline Document for the investment account and by the agreement for administrative services with the Public Agency Retirement Services (PARS), rather than the general provisions of the California Government code or the City’s investment policy. The City elected a discretionary investment approach which allows the City to maintain oversight of the investment management, control on target yield and the portfolio’ risk tolerance. The assets in this program will eventually be used to fund Pension Plan obligations.
CITY OF SANTA CLARA
NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2022
NOTE 7 – CASH AND INVESTMENTS (continued)
89 E. Interest Rate, Credit Risks and Fair Value Measurement Interest rate risk is the risk that an investment’s value will be adversely affected by a change in interest rates.
In general, the longer the time to maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. To reduce interest rate risk, the City diversifies the portfolio into a wide range of investments with different maturities, and maintains a reasonable average maturity of less than three years. This approach significantly mitigates adverse market volatility and maximizes returns.
The average maturity of the City’s pooled investment portfolio at June 30, 2022 was approximately 2.08 years and the City has the ability to and generally intends to hold all investments to maturity. Information about the sensitivity of the fair values of the City's investments (including investments held by bond trustees) to market interest rate fluctuations is provided in the investment table that shows the distribution of the City's investments by maturity.
Credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. Credit risk is measured by the assignment of a rating by a nationally recognized statistical rating organization.
CITY OF SANTA CLARA
NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2022
NOTE 7 – CASH AND INVESTMENTS (continued)
90 Presented below is the actual rating as of June 30, 2022 for each investment type:
Credit Under 180 181 - 365 1 - 3 3 - 5 Over 5 Fair
Type of Investment Rating Days Days Years Years Years Value Cash N/A $ - 176,746,148 $ - $ - $ - $ 176,746,148 $
US Treasury Notes Aaa 78,506,430 6,289,457 174,937,653 97,375,315 - 357,108,855 Federal Farm Credit Bank Aaa 4,999,800 6,813,072 60,872,940 9,270,500 - 81,956,312 Federal Home Loan Bank Aaa - - 24,883,500 - - 24,883,500 Federal National Mortgage Association Aaa - 4,997,650 41,058,196 1,707,666 - 47,763,512 Federal Home Loan Mortgage Corporation Aaa 4,893,650 - 13,711,231 8,613,353 - 27,218,234 Corporate Notes Aaa - - 9,953,100 4,611,500 - 14,564,600 Corporate Notes Aa - - 25,016,983 14,650,137 - 39,667,120 Corporate Notes A - - 63,012,539 40,788,214 - 103,800,753 Supranational Notes Aaa 7,178,104 - 10,456,646 - - 17,634,750 Asset-Backed Securities Aaa - - - 11,025,322 - 11,025,322 Municipal Notes Aaa - - - 2,502,986 - 2,502,986
Municipal Notes Not Rated 1,403,173 - - - - 1,403,173
Negotiable Certificates of Deposit A-1 10,861,730 - - - - 10,861,730 Money Market Funds Not Rated - 984,447 - - - 984,447
State Investment Pool (LAIF) Not Rated - 59,929,358 - - - 59,929,358 Total Cash and Investments -
City Treasury 107,842,887 255,760,132 423,902,788 190,544,993 - 978,050,800 Cash (Debt Fund) N/A - 6,085,210 - - - 6,085,210
Government Agency Notes (Bentzien Trust) Aaa 49,611 14,954 35,052 144,894 244,511 Municipal Notes (Bentzien Trust) Aaa - - 50,853 74,363 75,751 200,967 Municipal Notes (Bentzien Trust) Aa - - 86,199 117,442 104,861 308,502 Municipal Notes (Bentzien Trust) A - - 51,036 47,555 - 98,591 Municipal Notes (Bentzien Trust) BBB - - - 50,163 - 50,163 Corporate Notes (Bentzien Trust) BBB - - 35,183 34,697 - 69,880 Corporate Notes (Bentzien Trust) A - - 25,058 - - 25,058 Corporate Stock (Bentzien Trust) A & B - 872,276 - - - 872,276 (continued)
Maturity
Cash and Investments - Other:
Cash and Investments - City Treasury:
CITY OF SANTA CLARA
NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2022
NOTE 7 – CASH AND INVESTMENTS (continued)
91 Credit Under 180 181 - 365 1 - 3 3 - 5 Over 5 Fair
Type of Investment Rating Days Days Years Years Years Value Mutual Fund - Dreyfus Money Market (Bond Proceeds) Aaam 2,149,658 - - - - 2,149,658 Mutual Fund - Blackrock Money Market (Debt Fund) Aaam 704,254 - - - - 704,254 Mutual Fund - Goldman FS Government Mutual Fund
(Debt Fund) Aaam - 8,473,195 - - - 8,473,195
Mutual Fund - JP Morgan Mutual Fund
(Debt Fund) Aaam 4,544,394 - - - - 4,544,394
Mutual Fund - International
Equities (Bentzien Trust) Not Rated 162,924 - - - - 162,924 Mutual Fund - Fixed Income
(Bentzien Trust) Not Rated 693,244 - - - - 693,244
Mutual Fund - Fidelity Treasury
(Debt Fund) Not Rated 11,536,236 - - - - 11,536,236
Mutual Fund - Equities
(Bentzien Trust) Not Rated 150,373 - - - - 150,373
Mutual Fund - Federated Prime (Bentzien Trust) Aaam 96,432 - - - - 96,432 Exchange Traded Funds
(Bentzien Trust) Not Rated 48,786 - - - - 48,786
Pension Rate Stabilization Investment
(Cash and Equivalents) Not Rated - 1,597,047 - - - 1,597,047 Pension Rate Stabilization Investment
(Mutual Funds-Equity) Not Rated - 8,553,781 - - - 8,553,781 Pension Rate Stabilization Investment
(Mutual Funds-Fixed Income) Not Rated - 19,549,525 - - - 19,549,525 Collateral Obligations (ADM & CAISO) Not Rated 19,518,954 - - - - 19,518,954 263,939 84,736,289 297,940 359,272 325,506 85,982,946
Total Cash and Investments $ 108,106,826 340,496,421 $ 424,200,728 $ 190,904,265 $ 325,506 $ 1,064,033,746 $ Total Cash and Investments - Other
Maturity
Cash and Investments - Other: (continued)
The City accounts for investments in accordance with GAAP, which requires governmental entities to report certain investments at fair value based on quoted market information obtained from recognized sources. The City has reported its investments at fair value with the exception of its share of external investment pools and mutual funds, the carrying value of which approximates fair value. In determining the change in fair value of its investments, the City used an aggregate method of calculation.
CITY OF SANTA CLARA
NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2022
NOTE 7 – CASH AND INVESTMENTS (continued)
92 The City categorizes its fair value measurements within the fair value hierarchy established by GAAP. The hierarchy is based on the valuation input used to measure the fair value of 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.
Investments and
Derivative
Instruments
Measured at Fair
Value
Quoted Prices in
Active Markets for
Identical Assets
Significant Other
Observable Inputs
6/30/2022 Level 1 Level 2 Exempt (1)
Investments by Fair Value Level
U.S. Treasury Notes $ 357,108,855 357,108,855 $ - $ - $ Federal Farm Credit Bank - 81,956,312 81,956,312 -
Federal Home Loan Bank - 24,883,500 24,883,500 -
Federal National Mortgage Association - 47,763,512 47,763,512 - Federal Home Loan Mortgage Corporation - 27,218,234 27,218,234 - Corporate notes - 158,032,473 158,032,473 -
Municipal Notes - 3,906,159 3,906,159 -
Asset-Backed Securities - 11,025,322 11,025,322 -
Supranational Notes - 17,634,750 17,634,750 -
Certificates of Deposit - 10,861,730 10,861,730 -
Wells Fargo Money Market Fund - 984,447 - 984,447
Total Short Term Investments 357,108,855 741,375,294 383,281,992 984,447 U.S. Treasury Notes (Bentzien Trust) 248,985 248,985 - - Federal Farm Credit Bank (Bentzien Trust)
- - - -
Federal Home Loan Bank (Bentzien Trust) - - - -
Government Agency Notes (Bentzien Trust) - 244,511 244,511 - Municipal Notes (Bentzien Trust) - 200,967 200,967 -
Municipal Notes (Bentzien Trust) - 308,502 308,502 -
Municipal Notes (Bentzien Trust) - 98,591 98,591 -
Municipal Notes (Bentzien Trust) - 50,163 50,163 -
Corporate Notes (Bentzien Trust) - 69,880 69,880 -
Corporate Notes (Bentzien Trust) - 25,058 25,058 -
Mutual Fund - Dreyfus Money Market (Bond Proceeds) - 2,149,658 - 2,149,658 Mutual Fund - Blackrock Money Market (Debt Fund) - 704,254 - 704,254 Mutual Fund - Goldman FS Government Mutual Fund
(Debt Fund) - 8,473,195 - 8,473,195
Mutual Fund - JP Morgan Money Market Funds (Debt Fund) - 4,544,394 - 4,544,394 Mutual Fund - Money Market (Bentzien Trust) - - - -
Mutual Fund - International Equities (Bentzien Trust) - 162,924 162,924 - (continued)
Fair Value Measurements Using
Short Term Investments
Debt Securities and Other
CITY OF SANTA CLARA
NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2022
NOTE 7 – CASH AND INVESTMENTS (continued)
93 Investments and
Derivative
Instruments
Measured at Fair
Value
Quoted Prices in
Active Markets for
Identical Assets
Significant Other
Observable Inputs
6/30/2022 Level 1 Level 2 Exempt (1)
Mutual Fund - Fixed Income (Bentzien Trust) - 693,244 693,244 - Mutual Fund - Fidelity Treasury (Debt Fund) 11,536,236 - 11,536,236 - Mutual Fund - Equities
(Bentzien Trust) - 150,373 150,373 -
Mutual Fund - Federated Prime (Bentzien Trust) - 96,432 96,432 - Pension Rate Stabilization Investment
(Cash and Equivalents) 1,597,047 1,597,047 -
Pension Rate Stabilization Investment
(Mutual Funds-Equity) 8,553,781 8,553,781 - -
Pension Rate Stabilization Investment
(Mutual Funds-Fixed Income) 15,261,761 19,549,525 4,287,764 - Collateral Obligations (ADM & CAISO) - 19,518,954 - 19,518,954 Total Debt Securities and Other 25,661,574 78,976,673 17,924,645 35,390,455 Corporate Stock (Bentzien Trust) 872,276 872,276 - -
Exchange Traded Funds (Bentzien Trust) 48,786 48,786 - - Total Equity Securities 921,062 921,062 - -
Total Investment by Fair Value Level 383,691,490 821,273,029 401,206,637 36,374,902 Investments Measured at the Amortized Cost
State Investment Pool (LAIF) - 59,929,358 - 59,929,358
Total Investments Measured at the Amortized Cost - 59,929,358 - 59,929,358 Total Investments 383,691,490 881,202,387 $ 401,206,637 $ 96,304,260 $ Cash in Banks 182,831,358
Total Cash and Investments $ 1,064,033,746
Investments Derivative Instruments
Open contract power trading - Current Assets $ 15,462,094 15,462,094 Open contract Gas trading - Non-current Assets 26,724,615 26,724,615 Total Investment Derivative Instruments $ 42,186,709 $ 42,186,709 Equity Securities
Fair Value Measurements Using
Debt Securities and Other (continued)
The City utilizes a third party pricing service to determine fair market prices for its individually held investments. Evaluations are based on market information available at the time and generated using proprietary evaluated pricing models and methodologies.
Bentzien Trust investment in stocks and U.S. Treasuries are valued using prices quoted in active markets for those securities. All other Bentzien Trust debt securities are valued using a Market Approach methodology by Standard & Poor’s Securities Evaluation Inc. The Market Approach uses prices and other relevant information generated by market transactions involving identical or similar assets, liabilities or a group of assets and liabilities.
CITY OF SANTA CLARA
NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2022
NOTE 7 – CASH AND INVESTMENTS (continued)
94 Level 1 investments are valued using a marketable actively traded assets closing price for identical assets.
Level 2 investments are determined by using quoted prices for similar assets.
F. Concentration of Credit Risk
Investments in the securities of any individual issuers that represent 5% or more of total Citywide investments are shown in the table below:
Issuer Bond-rating Fair Value % of Holding
Federal Farm Credit Bank Aaa 81,956,312 $ 7.7%
G. Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, the City will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. Under California Government Code Section 53651, depending on specific types of eligible securities, a bank must deposit eligible securities posted as collateral with its Agent having a fair value of 105% to 150% of the City’s cash on deposit. All of the City’s deposits are either insured by the Federal Depository Insurance Corporation (FDIC) or collateralized with pledged securities held in the trust department of the financial institutions.
The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g. broker-dealer) to a transaction, the City will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The City’s Investment Policy limits its exposure to custodial credit risk by requiring that all security transactions entered into by the City, including collateral for repurchase agreements, be conducted on a delivery-versus-payment basis. Securities are to be held by a third party custodian.
H. Investments with Fair Values Highly Sensitive to Interest Rate Fluctuations The City has no investments that are highly sensitive to interest rate fluctuations to a greater degree than already disclosed in the Interest Rate Risk Section above.
I. Local Agency Investment Fund
The City is a voluntary participant in the Local Agency Investment Fund (LAIF). LAIF is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California.
LAIF’s investment portfolio mainly consists of Treasuries, loans, Federal Agency securities, and collateralized mortgage obligations. Each regular LAIF account is permitted to have up to 15 transactions per month, with a minimum transaction amount of $5,000, a maximum transaction amount of $75 million and at least 24 hours advance notice for withdrawals of $10 million or more. Bond proceeds accounts are subject to one time deposit with no cap and are set up with a monthly draw down schedule. The carrying value of LAIF approximates fair value.
CITY OF SANTA CLARA
NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2022
95 NOTE 8 – INTERFUND TRANSACTIONS AND BALANCES
A. Interfund Transfers
With Council approval, resources may be transferred from one City fund to another.
Transfers between funds during the fiscal year ended June 30, 2022 were as follows:
Fund Receiving Transfers Fund Making Transfers Amount
General Fund Non-Major Governmental 3,931,647 $ A
Internal Service Fund 1,324,739 B
Electric Utility 1,059,733 C
Santa Clara Convention Center 40,000 D
Non-Major Governmental General Fund 39,775,495 E
Cemetery F 822
Sewer Utility 113,118 F
Solid Waste F 26,621
Water Utility 267,066 F
Electric Utility 1,086,323 F
Non-Major Governmental 8,479,480 G
Internal Service Funds General Fund 6,014,310 H
Electrc Utility 118,851 I
Cemetery General Fund 7,969,558 J
Electric Utility General Fund 330,000 K
Sewer Utility Internal Service Funds 43,508 L
Electric Utility 186,108 M
Solid Waste General Fund N 33,600
Water Utility Electric Utility 186,108 M
Sewer Utility 500,000 O
Santa Clara Convention Center Non-Major Governmental 83,112 P Total Interfund Transfers $ 71,570,199
CITY OF SANTA CLARA
NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2022
NOTE 8 – INTERFUND TRANSACTIONS AND BALANCES (continued) 96 The reasons for material transfers are set forth below:
(A) Transfer to general fund from capital project funds and special revenue funds to return the excess funding. (B) Return the savings from electric vehicle purchase in the Automotive Service fund and CIP Management Service Fee fund.
(C) Transfer to general fund for the positions to support Electric Utility operation. (D) Transfer to general fund for the COVID relief programs. (E) Transfer to fund various capital projects, maintenance district, to pay the debt, and COVID-19 related activities.
(F) Transfer to fund their respective share of financial, human resources software, utility billing, and other projects.
(G) Transfer from Special Revenue fund to fund various street related capital projects. (H) Transfer to Special Liability fund to cover higher estimated insurance claims and to Automotive Service for fire engine purchase.
(I) Transfer from electric Greenhouse Gas program to fund the vehicle revolving fund on the electric vehicle purchases.
(J) Transfer to write off the interfund advance to Cemetery fund and subsidize the cemetery operation. (K) Transfer to fund the Electric Utility fiber project. (L) Returning the saving from CIP Management Service Fee fund to the original funding source. (M) Return the savings from the Electric Utility capital improvement project to the original funding sources. (N) Transfer to provide rebates to the Solid Waste customers for COVID relief. (O) Transfer to fund Water Utility capital improvement projects. (P) Transfer fund to Santa Clara Convention Center capital improvement project from Public Facilties Capital Project fund, the original funding source is from convention center operting funds.
CITY OF SANTA CLARA
NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2022
NOTE 8 – INTERFUND TRANSACTIONS AND BALANCES (continued) 97 B. Current Interfund Balances
Current interfund balances arise in the normal course of business and are expected to be repaid shortly after the end of the fiscal year. The following is a summary of interfund balances as of June 30, 2022.
Receivable Fund Payable Fund Amount
General Fund Santa Clara Stadium Authority 136,068 $
Receivable by Governmental Funds 136,068
Electric Utility Internal Service Funds 2,686,894
Water Utility Internal Service Funds 468,932
Sewer Utility Internal Service Funds 750,234
Cemetery Internal Service Funds 280,954
Receivable by Enterprise Funds 4,187,014
Internal Service Funds Internal Service Funds 34,980
Receivable by Internal Service Funds 34,980
Total $ 4,358,062
Note: The City uses due to/due from as a balancing mechanism in funds with negative cash balances.
C. Long-Term Interfund Advances
At June 30, 2022, the funds below had made advances which were not expected to be repaid within the next year.
Fund Receiving
Advance/Commitment
Fund Making
Advance/Commitment
Amount of
Advance/Commitment
Parks and Recreation Facilities General Fund 5,539,54 $ 0 Total $ 5,539,540
Cemetery Fund The General Fund has historically subsidized the operating costs of the cemetery. The potential repayment of these advances is unlikely in the City’s ten-year General Fund Forecast due to the limited revenue sources from the Cemetery Fund. The Council approved to write off the accumulated outstanding advance from the General Fund in amount of $7,111,149 in May 2022.
Parks and Recreation Facilities Fund has a $5,539,540 advance that bears interest which is based on the City’s weighted average portfolio rate and will be repaid to the General Fund in annual installments when Mitigation Fee Act funding becomes available.
CITY OF SANTA CLARA
NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2022
NOTE 8 – INTERFUND TRANSACTIONS AND BALANCES (continued) 98 D. Internal Balances
Internal balances represent the net interfund receivables and payables remaining after the elimination of all such balances within governmental, successor agency and business-type activities. The $4,790 net internal balance in the Statement of Net Position is due to the different fiscal year end dates between the City and the Santa Clara Stadium Authority (refer to Note 1D for more information).
CITY OF SANTA CLARA
NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2022
99 NOTE 9 – CAPITAL ASSETS A. Capital Assets Summary Capital Assets at June 30, 2022 are comprised of:
Balance Retirements/ Balance
June 30, 2021 Additions Adjustments Transfers June 30, 2022 Governmental Activities
Non Depreciable Assets:
Land $ - 124,518,835 $ $ - $ - $ 124,518,835
Construction in progress 45,872,339 19,122,482 - (12,738,352) 52,256,469 - - Total Non Depreciable Assets 170,391,174 19,122,482 - (12,738,352) 176,775,304 Capital assets being depreciated:
Land improvements 29,018,702 - - 63,972 29,082,674
Buildings - 217,214,792 - 152,245 217,367,037
Infrastructure 486,350 611,291,469 - 12,522,135 624,299,954 Machinery & equipment 84,156,821 2,290,063 (1,110,712) - 85,336,172 - - Total Capital assets being depreciated 941,681,784 2,776,413 (1,110,712) 12,738,352 956,085,837 Less accumulated depreciation for:
Land improvements (17,933,255) (1,270,068) - - (19,203,323) Buildings (4,265,708) (73,953,705) - - (78,219,413)
Infrastructure (14,866,069) (315,529,968) - - (330,396,037) Machinery & equipment (64,887,814) (3,788,199) 1,099,991 - (67,576,022) - - Total accumulated depreciation (472,304,742) (24,190,044) 1,099,991 - (495,394,795) - - Net Depreciable Assets 469,377,042 (21,413,631) (10,721) 12,738,352 460,691,042 - - Governmental Activity Net Capital Assets 639,768,216 $ (2,291,149) $ (10,721) $ - $ 637,466,346 $
CITY OF SANTA CLARA
NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2022
100
NOTE 9 – CAPITAL ASSETS (continued)
Balance Retirements/ Balance
June 30, 2021 Additions Adjustments Transfers June 30, 2022 Business-Type ActivitiesNon Depreciable Assets:
Land $ 18,851,211 $ - $ - $ - $ 18,851,211
Construction in progress 108,862,491 60,186,602 (184,412) (104,526,948) 64,337,733 Total Non Depreciable Assets 127,713,702 60,186,602 (184,412) (104,526,948) 83,188,944 Capital Assets being depreciated:
Land Improvements - 102,407 - - 102,407
Buildings - 918,524,826 (21,248) - 918,503,578
Infrastructure - 1,118,364,209 - 104,526,948 1,222,891,157 Machinery & equipment 24,189,097 1,721,928 (89,975) - 25,821,050 - - Total Capital Assets being depreciated 2,061,180,539 1,721,928 (111,223) 104,526,948 2,167,318,192 Less accumulated depreciation for:
Land Improvements (2,571) (77,125) - - (79,696)
Buildings & improvements (175,818,118) (18,219,533) - - (194,037,651)Infrastructure (25,627,187) (550,117,944) - - (575,745,131)Machinery & equipment (17,950,730) (1,350,678) 89,975 - (19,211,433)Total accumulated depreciation (743,963,917) (45,199,969) 89,975 - (789,073,911) Net Depreciable Assets 1,317,216,622 (43,478,041) (21,248) 104,526,948 1,378,244,281 Enterprise Activity Net Capital Assets 1,444,930,324 $ 16,708,561 $ (205,660) $ - $ 1,461,433,225 $
CITY OF SANTA CLARA
NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2022
101
NOTE 9 – CAPITAL ASSETS (continued)
B. Right-to-use Leased Assets Summary
Right-to-use leased assets at June 30, 2022 are comprised of:
Balance
June 30, 2021 Balance
(as restated) Additions June 30, 2022
Governmental Activities
Right-to-use leased equipment 676,479 $ - $ 676,479 $
Less accumulated depreciation for:
Right-to-use leased equipment - (212,436) (212,436)
- -
Governmental Activities Net RTU Assets 676,479 $ (212,436) $ 464,043 $ Balance
June 30, 2021 Balance
(as restated) Additions June 30, 2022
Business-Type Activities
Right-to-use leased buildings 2,916,623 $ - $ 2,916,623 $ Less accumulated depreciation for:
Right-to-use leased buildings - (673,067) (673,067)
Enterprise Activities Net Capital Assets 2,916,623 $ (673,067) $ 2,243,556 $ Right-to-use (RTU) lease assets being depreciated:
Right-to-use (RTU) lease assets being depreciated:
C. Construction in Progress Summary
Construction in Progress for governmental activities as of June 30, 2022 consisted of the following projects:
Future
Governmental Projects Authorized Expended Commitments
Transportation Improvements 41,824,372 $ 9,584,229 $ 32,240,143 $ Parks and Recreation Improvements 49,769,191 32,996,798 16,772,393 City Building Improvements 18,893,662 9,675,442 9,218,220 Total 110,487,225 $ 52,256,469 $ 58,230,756 $
CITY OF SANTA CLARA
NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2022
NOTE 9 – CAPITAL ASSETS (continued)
102
Construction in Progress for business-type activities as of June 30, 2022 consisted of the following:
Future
Enterprise Fund Projects Authorized Expended Commitments Electric Projects 172,807,033 $ 63,161,131 $ 109,645,902 $ Water and Sewer Projects 8,389,780 122,707 8,267,073
Stadium Authority Projects 13,860,515 468,766 13,391,749 Santa Clara Convention Center Projects 3,278,522 585,129 2,693,393 Total 198,335,850 $ 64,337,733 $ 133,998,117 $
Details of these projects are available from the City on request.
D. Depreciation Allocation
Depreciation expense is charged to functions and programs based on their usage of the related assets including the right-to-use leased assets. The amounts allocated to each function or program are as follows:
CITY OF SANTA CLARA
NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2022
NOTE 9 – CAPITAL ASSETS (continued)
103
Governmental Activities:
General Administration $ 1,202,408
Finance 5,421
Public Works 15,443,169
Parks and Recreation 1,881,605
Public Safety
Police 878,293
Fire 565,618
Planning and Inspection 26,572
Library 1,492,225
21,495,311
Capital assets held by the City's Internal Service
Funds are charged to the various functions
based on their usage of the assets 2,907,169
Total Governmental Activities $ 24,402,480
Business-Type Activities:
Utility Funds:
Electric Utility $ 24,220,786
Water Utility 1,738,593
Sewer Utility 1,337,408
Water Recycling Utility 25,141
Solid Waste 6,079
Cemetery 8,104
Santa Clara Convention Center 1,557,456
Santa Clara Stadium Authority 16,979,469
Total Business-Type Activities $ 45,873,036
CITY OF SANTA CLARA
NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2022
104
NOTE 10 – LONG-TERM DEBT AND DERIVATIVE INSTRUMENTS
A. Summary of Long-Term Obligations
Issue Date Final Maturity Interest rate
Governmental Activity Debt:
General Long-Term Debt:
General obligation bonds
2010 City of Santa Clara Lease Financing Agreement 7/13/2010 7/1/2022 3.65% 2013 Refunding Certificates of Participation 3/28/2012 2/1/2032 2%-3.75% Unamortized Premium/Discount
Subtotal Government Activity Debt
Business-Type Activity Debt:
Electric Utility:
2013 Series A Revenue Bonds 4/24/2013 7/1/2022 3%-5%
2018 Series A Revenue Bonds 12/18/2018 7/1/2027 0.05
Unamortized Premium/Discount
Santa Clara Stadium Authority (2):
Term A loan 6/19/2013 4/1/2039 5.00%
Subtotal Business Activity Debt-Bonds and Loan
Direct borrowing:
Electric Utility:
2020-1 Series Revenue Bonds 4/10/2020 7/1/2032 1.74%
2020-2 Series Revenue Bonds 4/10/2020 7/1/2028 1.31%
2020-3 Series Revenue Bonds 4/10/2020 7/1/2024 0.58%
Sewer Utility:
2016 Trimble Road Loan 3/8/2016 2/1/2031 2.14%
2020 Sewer Installment Sale Agreement 6/11/2020 7/1/2024 Variable Santa Clara Stadium Authority(2):
StadCo CFD Advance(1) 4/1/2013 12/31/2054 5.73%
StadCo Subordinated Loan 3/28/2012 3/31/2043 5.50%
Subtotal Business Activity Debt from Direct Borrowing
Subtotal Enterprise Activity Debt
Total Long-Term Debt Obligations
(2) Stadium Authority's long-term obligations are based on a March 31 fiscal year end. (see Note 1D) Type of Indebtedness
(1) Payments are made as the Mello-Roos tax is collected and transmitted to the Community Facilities District (CFD) by the hotels in the District.
CITY OF SANTA CLARA
NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2022
NOTE 10 – LONG-TERM DEBT AND DERIVATIVE INSTRUMENTS (continued) 105
Authorized
Outstanding as of
June 30, 2021
Additions,
Transfers, and
Amort. of
Discounts
Debt Retired /
Defeased
Outstanding as
of June 30, 2022
Current
Portion
$ 1,065,000 10,207,000 $ - $ 1,065,000 $ - $ - $
12,005,000 18,540,000 - 940,000 11,065,000 980,000
(54,297) 583,691 - 529,394 -
13,653,691 28,747,000 (54,297) 2,005,000 11,594,394 980,000 8,865,000 64,380,000 - 4,320,000 4,545,000 4,545,000
40,110,000 48,800,000 - 4,785,000 35,325,000 5,110,000
(753,233) 4,519,398 - 3,766,165 -
282,794,108 244,160,240 - 14,022,001 230,138,239 14,723,000 395,974,108 297,654,638 (753,233) 23,127,001 273,774,404 24,378,000 52,985,000 52,985,000 - - 52,985,000 -
34,315,000 34,315,000 - - 34,315,000 -
16,720,000 15,740,000 - 3,900,000 11,840,000 3,925,000
12,000,000 8,399,077 - 761,763 7,637,314 778,152
50,000,000 20,000,000 - - 20,000,000 -
38,000,000 29,502,893 871,610 - 30,374,503 -
233,138,533 23,132,426 - 3,331,476 19,800,950 4,911,322 437,158,533 184,074,396 871,610 7,993,239 176,952,767 9,614,474 833,132,641 481,729,034 118,377 31,120,240 450,727,171 33,992,474 $ 495,382,725 861,879,641 $ 64,080 $ 33,125,240 $ 462,321,565 $ 34,972,474 $
CITY OF SANTA CLARA
NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2022
NOTE 10 – LONG-TERM DEBT AND DERIVATIVE INSTRUMENTS (continued) 106
B. City’s Long-term Obligations
2010 City of Santa Clara Lease Financing Agreement
On July 13, 2010, the City entered into a new agreement with the PFFC in order to provide funds for the refunding of the City’s 1997 Certificates of Participation for the Police Administration building. The PFFC entered into a separate agreement with the assignee, Bank of America, N.A. Debt Service on the new Lease Agreement is secured by lease payments made by the City to the assignee for use of the Police Administration site. On March 22, 2012, Bank of America sold and transferred the agreement to Capital One Public Financing, LLC with no change to the terms, covenants, or conditions of the contract or the payment schedule.
As of June 30, 2022, the City has paid off the entire long-term lease obligation. 2013 Central Park Library Refunding Certificates of Participation (2013 COPs) On March 28, 2013, the PFFC issued $18.54 million to provide funds to refund outstanding 2002A COPs.
The 2013 COPs mature annually beginning February 1, 2014 through February 1, 2032 and bear coupon rates ranging from 2% to 3.75%. Debt Service is secured by lease payments to be made by the City to the PFFC for use of the library. The PFFC assigns the lease payments to the certificate owners.
In the event of default there is no remedy of acceleration of the total lease payments nor the maturities of the Certificates. The City will be liable only for the lease payments on an annual basis, and in the event of default, the trustee would be required to seek a separate judgement each year for that year’s defaulted lease payments.
Compliance
Various debt agreements governing the City’s bonds contain a number of covenants, including continuing disclosure requirements. The City is in compliance with these specific covenants and all other material covenants governing the particular bond issues. No event of default, as defined in the bond indentures, has occurred or is occurring.
Various debt agreements governing the Enterprise Funds’ revenue bonds contain a number of covenants, including those that require the City to maintain and preserve the respective enterprise in good repair and working order, to maintain certain levels of insurance and to fix and collect rates, fees and charges so as to maintain certain debt coverage ratios. The City is in compliance with these specific covenants and all other material covenants governing the particular revenue bond issues. No event of default as defined in the bond indentures has occurred or is occurring.
C. Enterprise Funds
Electric Utility
Electric Revenue Refunding Bonds, Series 2013A
On April 24, 2013, the City issued $64.38 million of the Electric Revenue Bonds, Series 2013A (Electric 2013A Bonds), to provide funds, together with other available moneys, to refinance outstanding Electric
CITY OF SANTA CLARA
NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2022
NOTE 10 – LONG-TERM DEBT AND DERIVATIVE INSTRUMENTS (continued) 107
2003A Bonds. The Electric 2013A Bonds mature annually beginning on July 1, 2014 through July 1, 2028 and bear coupon rates ranging from 3.00% to 5.00%. Debt service on the Electric 2013A Bonds is secured by a pledge of net revenues of SVP.
As of April 1, 2020, $43.705 million of the Electric 2013A Bonds were outstanding and $30.725 million would be callable at par beginning January 1, 2023. With the passage of the Tax Cuts and Jobs Act on December 22, 2017 (“tax reform”), the tax legislation eliminated advance refunding of tax-exempt bonds beginning Jan 1, 2018, and therefore tax-exempt advance refunding is no longer a refinancing option.
On April 10, 2020, SVP refinanced $30.725 million callable portion of the outstanding principal amount of Electric 2013 A Bonds through a direct placement with Bank of America, N.A. under a Taxable to TaxExempt Conversion structure. The refunding resulted in overall debt service savings of $1,706,384. The net present value of the debt service savings is called an economic gain and after an addition for prior funds on hand of $203 amounted to $1,703,470. See Notes below for Subordinated Electric Revenue Refunding Bonds, Series 2020-2.
As of June 30, 2022, $4.545 million non-callable principal of Electric 2013A Bonds were outstanding. In the event of default, SVP will transfer to the trustee all adjusted net revenues held by it and received thereafter and the trustee will disburse all adjusted net revenues and any other funds then held or thereafter received by the trustee under the provisions of indenture. In the case of default, the trustee will be entitled to declare the bond obligation of all bonds then outstanding to be due and payable immediately.
Electric Revenue Refunding Bonds, Series 2018A
On December 18, 2018, SVP issued $48.8 million of Electric Revenue Refunding Bonds, Series 2018A (Electric 2018A Bonds) to refinance $54.58 million outstanding principal amount of Variable Rate Demand Electric Revenue Refunding Bonds, Series 2008B and terminate a related swap agreement. The Electric 2018A Bonds bear 5% coupon rate, mature annually beginning on July 1, 2019 through July 1, 2027, and were sold at an All-In True Interest Cost of 2.32%. Debt service on the Electric 2018A Bonds is secured by a pledge of net revenues of SVP.
In the event of default, the City will transfer to the trustee all adjusted net revenues held by it and received thereafter and the Trustee will disburse all adjusted net revenues and any other funds then held or thereafter received by the trustee under the provisions of indenture. In the case of default, the trustee will be entitled to declare the bond obligation of all bonds then outstanding to be due and payable immediately.
Subordinate Electric Revenue Refunding Bonds, Series 2020-1 The City Council determined that it was in the best interests of the City to enter into a credit facility with a bank for the purpose of refunding all of the outstanding Electric 2011A Bonds; and for the indebtedness created under such credit facility to be evidenced by a subordinate electric revenue bond to be issued by the City and delivered to the Bank as authorized by Resolution No. 20-8834 adopted by the City Council on April 7, 2020.
On April 10, 2020, the City entered into a loan agreement with Bank of America, N.A., (the “Loan Agreement”) and issued $52.985 million of Subordinate Electric Revenue Refunding Bonds, Series 2020-1 (Electric 2020-1 Bonds) to refinance $54.830 million outstanding principal amount of Electric Series 2011A Bonds under a Taxable to Tax-Exempt Conversion structure. The Electric 2020-1 Bonds were originally
CITY OF SANTA CLARA
NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2022
NOTE 10 – LONG-TERM DEBT AND DERIVATIVE INSTRUMENTS (continued) 108
issued as taxable bonds with coupon rates of 1.74% and were converted to a tax-exempt rate of 1.36% per annum effective April 2, 2021. The Electric 2020-1 Bonds mature annually beginning on July 1, 2028 through July 1, 2032 and were sold at a true interest cost of 1.43% with an average coupon rate of 1.40%.
Debt service on the Electric 2020-1 Bonds is secured by a pledge of Available Electric Revenues of SVP on a basis subordinate to outstanding Senior Electric Revenue Bonds, if any.
Subordinate Electric Revenue Refunding Bonds, Series 2020-2 The City Council determined that it was in the best interests of the City to enter into a credit facility with a bank for the purpose of refunding a portion of the outstanding Electric 2013A Bonds; and for the indebtedness created under such credit facility to be evidenced by a subordinate electric revenue bond to be issued by the City and delivered to the Bank as authorized by Resolution No. 20-8834 adopted by the City Council on April 7, 2020.
On April 10, 2020, the City entered into a loan agreement with Bank of America, N.A. and issued $34.315 million of Subordinate Electric Revenue Refunding Bonds, Series 2020-2 (Electric 2020-2 Bonds) to refinance $30.725 million of the callable portion of the outstanding Electric Revenue Refunding Bonds, Series 2013 A. The Electric 2020-2 Bonds bear 1.31% coupon rates, mature annually beginning on July 1, 2023 through July 1, 2028, and were sold at a true interest cost of 1.21% with an average coupon rate of
1.15%. Electric 2020-2 Bonds were priced at taxable rates and will convert to tax-exempt at the earlier of the call date of January 1, 2023 or the reversal of the advance refunding prohibition. Both the taxable rate and tax-exempt rate at conversion were fixed at the time of issuance. Debt service on the Electric 2020-2 Bonds is secured by a pledge of Available Electric Revenues of SVP on a basis subordinate to outstanding Senior Electric Revenue Bonds, if any.
Subordinate Electric Revenue Refunding Bonds, Series 2020-3 The City Council determined that it was in the best interests of the City to enter into a credit facility with a bank for the purpose of refunding of the outstanding Electric Series 2014; and for the indebtedness created under such credit facility to be evidenced by a subordinate electric revenue bond to be issued by the City and delivered to the Bank as authorized by Resolution No. 20-8834 adopted by the City Council on April 7, 2020.
On April 10, 2020, the City issued $16.720 million of Subordinate Electric Revenue Refunding Bonds, Series 2020-3 (Electric 2020-3 Bonds) to refinance $19.413 million outstanding principal amount of Subordinated Electric Revenue Bonds, Series 2014. The Electric 2020-3 Bonds bear 0.58% coupon rates, mature annually beginning on July 1, 2020 through July 1, 2024, and were sold at a true interest cost of
0.70%. Debt service on the Electric 2020-3 Bonds is secured by a pledge of Available Electric Revenues of SVP on a basis subordinate to outstanding Senior Electric Revenue Bonds, if any.
In the event of default under the loan agreement for the 2020-1 bonds, 2020-2 bonds or 2020-3 bonds (including a failure by the City to pay principal or interest on the related bonds, a failure by the City to perform or observe its covenants, a default in other specified indebtedness or obligations of the City, certain acts of bankruptcy or insolvency, or other specified events of default), the Bank has the right, upon written notice to the City, to accelerate and declare the City’s obligation to repay the related bonds and all other obligations of the City to the Bank under such loan agreement to be immediately due and payable.
CITY OF SANTA CLARA
NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2022
NOTE 10 – LONG-TERM DEBT AND DERIVATIVE INSTRUMENTS (continued) 109
Pledges of Future Electric Revenues
The pledge of future Electric Fund revenues ends upon repayment of all outstanding principal on bonds and loans, which is scheduled to occur in fiscal year 2032-33. For fiscal year 2021-22, Electric Fund revenues, including operating revenues and non-operating interest earnings, amounted to $554.2 million and operating costs including operating expenses, but not interest, depreciation or amortization whole amounted to $492.7 million. Net revenues available for debt service amounted to $61.5 million which represented a coverage ratio of 3.8 on the $16.2 million of debt service.
Sewer Utility
Installment Sale Agreement, Series 2016
On March 8, 2016, the City entered into an Installment Sale Agreement with the PFFC in order to provide funds for the Trimble Road Trunk Sanitary Sewer Improvement Project (the “Project”). The PFFC entered into a separate Assignment Agreement with the DNT Asset Trust, a wholly owned subsidiary of JP Morgan Chase National Association (the “Agreement”), to assign its rights under the Installment Sale Agreement to DNT Asset Trust. The Agreement, in the amount of $12,000,000, carries an interest rate of 2.14% and the final payment is due February 1, 2031. Installment payments on the Agreement are secured by a pledge of net revenues of the Wastewater System. Net revenue of $28.8 million was available for debt service payments of $0.7 million.
In the event of default there is no remedy of acceleration of the total installment payments. The City will be liable only for the installment payments as they become due during the terms of the agreement. There are no significant finance-related consequences for termination.
Installment Sale Agreement, Series 2020
On June 11, 2020, the City entered into an Installment Sale Agreement (the “ISA”) with the PFFC to provide funds for the San Jose/Santa Clara Regional Wastewater Facility Project (the “Project”). The PFFC entered into a separate Assignment Agreement with JPMorgan Chase Bank, N.A. (the “Assignment Agreement”), to assign its rights under the ISA to JPMorgan Chase Bank, N.A. The ISA in the amount of $50,000,000 carries a variable rate of interest equal to 80% of 1-month LIBOR (reset daily), plus .95% per annum. The City may draw on the Installment Sale Agreement as necessary with an initial $20,000,000 drawn on the date of closing. Interest is due each January 1 and July 1, commencing January 1, 2021. Principal on outstanding advances is due on or before July 1, 2024. In addition, the PFFC shall pay an undrawn fee on any amount not yet drawn at a rate of .325% per annum on each interest payment date. Installment payments on the Agreement are secured by a pledge of net revenues of the Wastewater System on a subordinate basis to the Trimble Road Installment Payments. Net revenue of $28.8 million less the Installment Sale Agreement, Series 2016 debt service payment of $0.7 million are available for future payments.
In the event of default there is no remedy of acceleration of the total installment payments. The City will be liable only for the installment payments as they become due during the terms of the agreement. There are no significant finance-related consequences for termination.