Agenda packet, regular meeting, first session — Santa Fe Springs City Council, March 21, 2023 (part 1 of 2)

Agenda
03-21-2023 AGENDA.PDF
Meeting Materials
MARCH 21, 2023, MEETING VIDEO
03-21-2023 AGENDA PACKET.PDF

1. Documents:

2. Documents:
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AGENDA

REGULAR MEETINGS OF THE SANTA FE SPRINGS

PUBLIC FINANCING AUTHORITY

WATER UTILITY AUTHORITY

HOUSING SUCCESSOR

SUCCESSOR AGENCY

AND CITY COUNCIL
March 21, 2023
6:00 P.M.

Annette Rodriguez, Councilmember
William K. Rounds, Councilmember
Joe Angel Zamora, Councilmember
Jay Sarno, Mayor Pro Tem
Juanita Martin, Mayor
Council Chambers
11710 Telegraph Road
Santa Fe Springs, CA 90670
You may attend the City Council meeting telephonically or electronically using the following means:

Electronically using Zoom: Go to Zoom.us and click on “Join A Meeting” or use the following link:
https://zoom.us/j/521620472?pwd=U3cyK1RuKzY1ekVGZFdKQXNZVzh4Zz09 Zoom Meeting ID: 521620472 Password: 659847
Telephonically: Dial: 888-475-4499 Meeting ID: 521620472 Public Comment: The public is encouraged to
address City Council on any matter listed on the
agenda or on any other matter within its
jurisdiction. If you wish to address the City
Council, please use the "Raise Hand" function
via Zoom once the Mayor opens Public
Comment during the meeting. You may also
submit comments in writing by sending them to
the City Clerk's Office at
[email protected]. All written
comments received by 12:00 p.m. the day of the
City Council Meeting will be distributed to the
City Council and made a part of the official record
of the meeting. Written comments will not be
read at the meeting, only the name of the person
submitting the comment will be announced.

Americans with Disabilities Act: In compliance
with the ADA, if you need special assistance to
participate in a City meeting or other services
offered by this City, please contact the City Clerk’s
Office. Notification of at least 48 hours prior to the
meeting or time when services are needed will
assist the City staff in assuring that reasonable
arrangements can be made to provide
accessibility to the meeting or service.

Pursuant to provisions of the Brown Act, no
action may be taken on a matter unless it is listed
on the agenda, or unless certain emergency or
special circumstances exist. The City Council
may direct staff to investigate and/or schedule
certain matters for consideration at a future City
Council meeting.

Please Note: Staff reports, and supplemental
attachments, are available for inspection at the
office of the City Clerk, City Hall, 11710 E.

Telegraph Road during regular business hours
7:30 a.m.-5:30 p.m., Monday-Thursday and every
other Friday. Telephone: (562) 868-0511.

1. CALL TO ORDER
City of Santa Fe Springs
Regular Meetings March 21, 2023
2 2. ROLL CALL
Annette Rodriguez, Councilmember
William K. Rounds, Councilmember
Joe Angel Zamora, Councilmember
Jay Sarno, Mayor Pro Tem
Juanita Martin, Mayor

3. INVOCATION

4. PLEDGE OF ALLEGIANCE

5. INTRODUCTIONS

PUBLIC FINANCING AUTHORITY

6. CONSENT AGENDA
Consent Agenda items are considered routine matters which may be enacted by one motion and vote.

Any item may be removed from the Consent Agenda and considered separately by the Public Financing Authority.
a. Minutes of the February 21, 2023 Public Financing Authority Meetings (City Clerk) Recommendation:
• Approve the minutes as submitted.
b. Monthly Report on the Status of Debt Instruments Issued through the City of Santa Fe Springs Public Financing Authority (PFA) (Finance)
Recommendation:
• Receive and file the report.

WATER UTILITY AUTHORITY

7. CONSENT AGENDA
Consent Agenda items are considered routine matters which may be enacted by one motion and vote.

Any item may be removed from the Consent Agenda and considered separately by the Water Utility Authority.
a. Minutes of the February 21, 2023 Water Utility Authority Meetings (City Clerk) Recommendation:
• Approve the minutes as submitted.
b. Monthly Report on the Status of Debt Instruments Issued through the City of Santa Fe Springs Water Utility Authority (WUA) (Finance)
Recommendation:
• Receive and file the report.
c. Status Update of Water-Related Capital Improvement Projects (Public Works) Recommendation:
• Receive and file the report.

HOUSING SUCCESSOR
City of Santa Fe Springs
Regular Meetings March 21, 2023
3 8. CONSENT AGENDA
Consent Agenda items are considered routine matters which may be enacted by one motion and vote. Any item may be removed from the Consent Agenda and considered separately by the Housing Successor.

Minutes of the February 21, 2023 Housing Successor Meetings (City Clerk) Recommendation:
• Approve the minutes as submitted.

SUCCESSOR AGENCY

9. CONSENT AGENDA
Consent Agenda items are considered routine matters which may be enacted by one motion and vote. Any item may be removed from the Consent Agenda and considered separately by the Successor Agency.

Minutes of the February 21, 2023 Successor Agency Meetings (City Clerk) Recommendation:
• Approve the minutes as submitted.

CITY COUNCIL

10. CONSENT AGENDA
Consent Agenda items are considered routine matters which may be enacted by one motion and vote. Any item may be removed from the Consent Agenda and considered separately by the City Council.
a. Minutes of the February 21, 2023 Special and Regular City Council Meetings (City Clerk)
Recommendation:
• Approve the minutes as submitted.
b. Authorize the Purchase of One (1) Toyota Sienna Hybrid Disabled Passenger Van from A-Z Bus Sales and Appropriate $33,000 from Local Return Prop C Funds to Fully Fund this Purchase (Finance)
Recommendation:
• Authorize the purchase of (1) Toyota Sienna hybrid disabled passenger van by awarding an order to A-Z Bus Sales; and
• Appropriate $33,000 from Local Return Prop C funds to fully fund this purchase; and
• Authorize the Director of Purchasing Services to process a Purchase Order in the amount of $83,952.73 to A-Z Bus Sales.
c. Amendment Number One to Professional Services Agreement with Ron’s Maintenance, Inc. for Catch Basin Maintenance Services to Exercise One-Year Renewal Option (Public Works)
Recommendation:
• Approve Amendment Number One to Professional Services Agreement with Ron's Maintenance, Inc. to exercise the second one-year renewal option. • Authorize the Mayor to sign Amendment Number One.

City of Santa Fe Springs
Regular Meetings March 21, 2023
4 d. 2023 SFS Art Fest Traffic Control Plan – Request for Approval (Community Services)
Recommendation:
• Approve the traffic control plans prepared for the lane closures and speed reduction in the area of Pioneer Boulevard and Telegraph Road for the 2023 Art Fest on April 27 and April 28, 2023.
e. Request for Out-of Travel for the Director of Planning and Assistant Director of Planning, to attend the 2023 International Council of Shopping Center (ICSC) – RECon in Las Vegas (May 21-23, 2023), and for the Director of Planning to attend the 2023 American Planning Association (APA) Annual Conference in Philadelphia ( April 1-4, 2023) (Planning)
Recommendation:
• Approve out-of-state travel for the Director of Planning and Assistant Director Planner to attend the 2023 International Council of Shopping Center (ICSC) –RECon in Las Vegas (May 21-23, 2023); and
• Approve out-of-state travel for the Director of Planning to attend the 2023 American Planning Association (APA) Annual Conference in Philadelphia (April 1-4, 2023).
f. Upgrade the City Hall Campus Phone System Network to Avaya IP Office (Finance)
Recommendation:
• Authorize the purchase of necessary hardware and labor from VOX/Waterfield by piggybacking off Omnia Partners Cooperative Contract No. R200803
• Authorize the Director of Purchasing Services to issue a Purchase Order to Vox/Waterfield in the amount of $128,505.73.
g. City of Bellflower Extension of Agreement for Traffic Signal Maintenance Services (Public Works)
Recommendation:
• Approve the agreement extension with the City of Bellflower to provide Signal Maintenance Services; and
• Authorize the Mayor to execute the Agreement on behalf of the City.

NEW BUSINESS

11. Resolution No. 9856, Approving, Authorizing and Directing the Execution of the Joint Exercise of Powers Agreement Relating to Membership in the Gateway Cities Affordable Housing Trust (Planning)
Recommendation:
• Adopt Resolution No. 9856 –approving the City execution of the Joint Exercise of Powers Agreement relating to membership in the Gateway Cities Affordable Housing Trust; and
• Authorize the Mayor or designee to execute the Gateway Cities City of Santa Fe Springs
Regular Meetings March 21, 2023
5 Affordable Housing Trust Joint Powers Authority (JPA) Agreement upon final approval of the language of the JPA by the City Attorney.

12. Fiscal Year (FY) 2022-2023 Midyear Budget Review and Modifications (Finance) Recommendation:
• Approve the proposed revenue and expenditure adjustments as detailed in Attachments A through C.

13. Presentation and Consideration of the City’s Annual Comprehensive Financial Report for the Fiscal Year ending June 30, 2022 (Finance)
Recommendation:
• Receive and file the City’s Annual Comprehensive Financial Report for the Fiscal Year ending June 30, 2022 and related communications.

14. PRESENTATIONS
a. Recognition of 2023 Santa Fe Springs Shamrock Fun/Walk Event Sponsors (Community Services)
b. Proclamation – Proclaiming March 29, 2023 as “National Vietnam War Veterans Day” (City Manager)

15. PUBLIC COMMENTS This is the time when comments may be made by members of the public on matters within the jurisdiction of the City Council, on the agenda and not on the agenda. The time limit for each speaker is three minutes unless otherwise specified by the Mayor.

16. CITY MANAGER’S AND EXECUTIVE TEAM REPORTS

17. APPOINTMENTS TO BOARDS, COMMITTEES, COMMISSIONS

18. COUNCIL COMMENTS

19. ADJOURNMENT
I, Janet Martinez, City Clerk for the City of Santa Fe Springs, do hereby certify under penalty of perjury under the laws of the State of California, that the foregoing agenda was posted at the following locations; City’s website at www.santafesprings.org; Santa Fe Springs City Hall, 11710 Telegraph Road; Santa Fe Springs City Library, 11700 Telegraph Road; and the Town Center Plaza (Kiosk), 11740 Telegraph Road, not less than 72 hours prior to the meeting. 3/16/23
Janet Martinez, CMC, City Clerk Date Posted
.

AGENDA

REGULAR MEETINGS OF THE SANTA FE SPRINGS

PUBLIC FINANCING AUTHORITY

WATER UTILITY AUTHORITY

HOUSING SUCCESSOR

SUCCESSOR AGENCY

AND CITY COUNCIL
March 21, 2023
6:00 P.M.

Please Note: Staff reports, and supplemental
attachments, are available for inspection at the
office of the City Clerk, City Hall, 11710 E.

Telegraph Road during regular business hours
7:30 a.m.-5:30 p.m., Monday-Thursday and every
other Friday. Telephone: (562) 868-0511.

3. INVOCATION

4. PLEDGE OF ALLEGIANCE

5. INTRODUCTIONS

PUBLIC FINANCING AUTHORITY

6. CONSENT AGENDA
Consent Agenda items are considered routine matters which may be enacted by one motion and vote.

WATER UTILITY AUTHORITY

7. CONSENT AGENDA
Consent Agenda items are considered routine matters which may be enacted by one motion and vote.

Minutes of the February 21, 2023 Housing Successor Meetings (City Clerk) Recommendation:
• Approve the minutes as submitted.

SUCCESSOR AGENCY

Minutes of the February 21, 2023 Successor Agency Meetings (City Clerk) Recommendation:
• Approve the minutes as submitted.

CITY COUNCIL

NEW BUSINESS

12. Fiscal Year (FY) 2022-2023 Midyear Budget Review and Modifications (Finance) Recommendation:
• Approve the proposed revenue and expenditure adjustments as detailed in Attachments A through C.

16. CITY MANAGER’S AND EXECUTIVE TEAM REPORTS

17. APPOINTMENTS TO BOARDS, COMMITTEES, COMMISSIONS

18. COUNCIL COMMENTS

CONSENT AGENDA
Monthly Report on the Status of Debt Instruments Issued through the City of Santa Fe Springs Public Financing Authority (PFA)

BACKGROUND
The Santa Fe Springs Public Financing Authority (PFA) is a City entity that has periodically issued debt for the benefit of the Santa Fe Springs community. The following is a brief status report on the debt instruments currently outstanding that were issued through the PFA.

Consolidated Redevelopment Project 2006-A Tax Allocation Bonds Financing proceeds available for appropriation at 2/28/2023 None Outstanding principal at 2/28/2023 $37,857,128
Bond Repayment
The former Community Development Commission (CDC) issued a number of tax allocation bonds before it was dissolved by State law effective February 1, 2012 which are administered by the City acting as Successor Agency under the oversight of the appointed Oversight Board. The Successor Agency no longer receives tax increment. Instead, distributions from the Redevelopment Property Tax Trust Fund (RPTTF) are received based on approved obligations. It is anticipated that sufficient allocations from the RPTTF will continue to be made to the Successor Agency to meet ongoing debt service obligations.

Unspent Bond Proceeds
Under an approved Bond Expenditure Agreement, unspent bond proceeds of the former CDC in the amount of approximately $19 million were transferred to the City in July 2014.

The funds are to be spent in accordance with the original bond documents. The unspent proceeds continue to be a source of funding within the City’s capital improvement program (CIP).
2016 Bond Refunding
In July 2016, the Successor Agency issued its 2016 Tax Allocation Refunding Bonds, which paid off several bond issuances of the former CDC. The bonds were originally issued through the Public Financing Authority and included the 2001 Series A, 2002 Series A, 2003 Series A, the current interest portion of the 2006 Series A, and 2006 Series B bond issuances.

RECOMMENDATION
Receive and file the report.

ITEM NO. 6B
Public Financing Authority Monthly Report Page 2 of 2
Report Submitted By: Travis Hickey Date of Report: March 16, 2023 Finance & Administrative Services
2017 Bond Refunding
In December 2017, the Successor Agency issued its 2017 Tax Allocation Refunding Bonds, which paid off the 2007 Tax Allocation Bonds of the former CDC. The 2007 Bonds were originally issued through the Public Financing Authority.

Tom Hatch
Interim City Manager/Executive Director
FOR ITEM NO. 7A
PLEASE SEE ITEM NO. 10A
City of Santa Fe Springs
Pla Water Utility Authority Meeting March 21, 2023
Report Submitted By: Travis Hickey Date of Report: March 16, 2023 Finance & Administrative Services

CONSENT AGENDA
Monthly Report on the Status of Debt Instruments Issued through the City of Santa Fe Springs Water Utility Authority (WUA)

BACKGROUND
The Santa Fe Springs Water Utility Authority (WUA) is a City entity that has issued debt for the benefit of the Santa Fe Springs community. The following is a brief status report on the debt instruments currently outstanding that were issued through the WUA.

Water Revenue Bonds, 2013
Financing proceeds available for appropriation at 2/28/2023 None Outstanding principal at 2/28/2023 $6,890,000
Water Revenue Bonds, 2018
Financing proceeds available for appropriation at 2/28/2023 None Outstanding principal at 2/28/2023 $820,000
In May 2013 the Water Utility Authority issued the 2013 Water Revenue Bonds in the amount of $6,890,000. The bonds refunded the existing 2003 Water Revenue Bonds (issued through the Public Financing Authority) and provided additional funds for water improvement projects in the amount of $2,134,339. The funds were restricted for use on water system improvements. In August 2013 the Water Utility Authority Board appropriated the proceeds for the Equipping Water Well No. 12 Project and all proceeds were since used on this project.

In January 2018 the Water Utility Authority issued the 2018 Water Revenue Bonds in the amount of $1,800,000. The bonds refunded the existing 2005 Water Revenue Bonds (issued through the Public Financing Authority). No additional funds were raised through the issuance of the 2018 Water Revenue Bonds.

The City budget includes sufficient appropriations and adequate revenues are expected to be collected to meet the debt service obligations associated with the 2013 and 2018 Water Revenue Bonds.

RECOMMENDATION
Receive and file the report.

ITEM NO. 7B
Water Utility Authority Monthly Report Page 2 of 2
Report Submitted By: Travis Hickey Date of Report: March 16, 2023 Finance & Administrative Services
The WUA was formed in June of 2009. Water revenue bonds issued prior to this date were issued through the City of Santa Fe Springs Public Financing Authority.

Tom Hatch
Interim City Manager/Executive Director
City of Santa Fe Springs
Water Utility Authority Meeting March 21, 2023
Report Submitted By: Yvette Kirrin Date of Report: March 16, 2023 Interim Director of Public Works

CONSENT AGENDA
Status Update of Water-Related Capital Improvement Projects

BACKGROUND
This report is for informational purposes only. The following is a listing of current active water projects.

Water Utility SCADA Programming And Maintenance
The Water Utility’s Supervisory Control And Data Acquisition (SCADA) software and system components are vital in operating and monitoring the drinking water system pressure, imported water connections, and the City’s five underpass pump stations.

SCADA allows staff to remotely monitor and make changes to specific system parameters.

As the SCADA system was installed more than twenty years ago, much of the hardware is outdated as is the software. Staff is preparing to advertise a Request for Proposals (RFP) for On-call SCADA Programming And Maintenance Services to ensure continued operation of the SCADA system.

INFRASTRUCTURE IMPACT
Having an On-call SCADA programing and maintenance contract in place will ensure continued operation of the City’s drinking water system. Updated software and hardware will ensure future compatible components are installed, decrease vulnerability to cyber threats, and increase reliability and functionality of the SCADA system.

Tom Hatch
Interim Executive Director
Attachments:

None

RECOMMENDATION
• Receive and file the report.

ITEM NO. 7C
FOR ITEM NO. 8
PLEASE SEE ITEM NO. 10A
FOR ITEM NO. 9
PLEASE SEE ITEM NO. 10A
City Council Meeting March 21, 2023
Report Submitted By: Janet Martinez, City Clerk Date of Report: March 16, 2023 City of Santa Fe Springs

CONSENT AGENDA
Minutes of the February 21, 2023 City Council Meetings

BACKGROUND
Staff has prepared minutes for the following meetings:
• Special City Council Meeting of February 21, 2023
• Regular City Council Meeting of February 21, 2023
Staff hereby submits the minutes for Council’s approval.

Tom Hatch
Interim City Manager
Attachment:

1. February 21, 2023 Special Meeting Minutes

2. February 21, 2023 Regular Meeting Minutes

RECOMMENDATION(S)
• Approve the minutes as submitted.

ITEM NO. 10A
APPROVED:

MINUTES OF THE JOINT SPECIAL MEETING OF THE SANTA FE SPRINGS

CITY COUNCIL AND PLANNING COMMISSION
February 21, 2023

1. CALL TO ORDER
Mayor Martin and Chair Carbajal called the joint meeting to order at 5:03 p.m.

2. ROLL CALL
Members present: Councilmembers: Rodriguez, Rounds, Zamora, Mayor Pro Tem Sarno and Mayor Martin.

Commissioners: Commissioners: Flores, Jimenez, Mora, Vice Chair Ayala (arrived at 5:05 p.m.) and Chair Carbajal.

Members absent: None.

3. PUBLIC COMMENT
There were no speakers.

CITY COUNCIL/PLANNING COMMISSION

4. STUDY SESSION
A Presentation by the City’s consultant, MIG, to provide an update on the Targeted Zoning Amendments, including the draft non-conforming, mixed-use, and multi-family sections, and the certification of the 2021-2029 Housing Element (Planning) Recommendation:
• Receive the presentation from MIG, and provide feedback as desired.

Cuong Nguyen, Assistant Director of Planning provided a brief recap of the events that took place before the Study Session. He stated that on February 8, 2022 the City adopted the General Plan after 30 years with no comprehensive update. He also stated that there has been extensive outreach for the various amendments that will be presented today by Jose Rodriguez, project manager from MIG.

Mr. Rodriguez provided a brief overview of the Targeted zoning plan. He stated that there was four (4) ZAG (Zoning Advisory Group) Meetings and a series of workshops that were held in the community to ensure that the business and residents had the opportunity to provide their feedback. He also noted that the city mailed out a notice to those that are being affected by the zone change to understand what industrial and mix use standards were being changed. He continued his presentation including the following concentration of the zone changes such as Mixed Use zones. There are currently no mixed-zones, and standards are being written to know what can be built in that location and the intent. There is a series of new tables that list of what is allowed and prohibited. For example, listing whether it is commercial or residential uses.

ATTACHMENT 1
Minutes of the February 21, 2023 Special City Council Meeting

Page 2 ends

Mr. Rodriguez also spoke about the Multi-Family zone. He noted that the last update was in the 1960’s and one small change in 2017. However, there has not been any comprehensive changes. He noted that one of the noticeable changes was the R-4 zone, which is the high density area.

Mayor Pro Tem Sarno inquired whether there is a limitation on the R-4 zone and what are the minimum requirements.

Mr. Rodriguez stated that it is a minimum of 20 feet per acre. Both R-3 and R-4 zone districts have the ability to have higher and lower zones. He noted that the zone district tables for both uses have been updated with today’s state regulations.

Mr. Rodriguez spoke about the non-conforming uses. He noted that these have not been updated and it has been made more flexible changes that are also reflected in the general plan.

Staff has ensured that the changes being made were made to accommodate current businesses to ensure that they can continue the business.

He also spoke about the nonconforming situations. He noted that staff is working closely with the business group to ensure that the city is able to compromise with the businesses on standards. Last, he spoke about the Housing Element. He stated that the housing element was adopted by Council on December 1, 2022. Staff is currently working with the state to address comments made on the Housing element and submit the revised element for the third time.

Council Member Zamora inquired what comments is staff addressing and what state laws have changed.

Mr. Rodriguez responded and stated that some of these included changes from 2022 to 2023.

He noted that a few of them were related to Fair Housing. He then continued his presentation and noted that the targeted date is May/June 2023. There are comments still being accepted from the public and are open to still implement changes if submitted. He noted that MIG and another firm is working on updating the zone change and standard design. Therefore, around late April/May the final zone update will be brought forward to Council for adoption.

Mr. Rodriguez spoke about drive-thru restaurants and pedestrian walks. He noted that drivethru’ s are only allowed on a few locations such as telegraph. He reminded the commission/council that all drive-thru’s require a Conditional Use Permit. He also elaborated on the new parking restrictions on some areas and some flexibility.

Council Member Zamora inquired if there will be permitted parking.

Mr. Rodriguez requested clarification whether he’s asking for parking on the new sites.

Council Member Zamora inquired what the City is doing with the roads where the city owns half and the others are owned by the county. He also requested to know what the plan if the city is developing a project by those streets.

Mr. Rodriguez noted that there are new state laws that there are new parking requirements within one half mile of a quality station. Cities can no longer provided minimum standards.

Minutes of the February 21, 2023 Special City Council Meeting

Page 3 ends

Vice Chair Ayala inquired whether staff already had an idea where parking will be located.

Mr. Rodriguez responded and stated they do not at this time. Provided an example of the flexibility there is for this zone change.

Commissioner Jimenez inquired what type of area is the one in discussion at this moment.

Mr. Rodriguez noted it is a mixture of R-4 and R-3.

Commissioner Rodriguez inquired whether there have been any business owners request for drive-thrus or concerns.

Mr. Nguyen noted that staff has received request for drive-thrus. He also addressed the shared parking inquiry. Noted that the new zone will add 600 feet, further than the standard codes for parking.

Chair Carbajal expressed her concerns with the development property with the 44 units on Washington and the off-site parking on street. She inquired how the shared parking will work.

Mr. Nguyen suggested entering into an agreement with a commercial/business to specify the hours of parking to accommodate shared parking.

Mayor Martin noted that the main concern across the board is parking. She expressed the crime is high in the area and this parking change zone can possibility create additional crime concerns.

Planning Director, Wayne Morrell spoke in regards to the comment on required parking for mixed uses.

Mayor Pro Tem Sarno expressed his concerns related to the mixed use zone with the 600feet.

City Attorney Ivy Tsai requested for Mr. Rodriguez to go over the 600 feet from development slide again.

Mr. Rodriguez provided further clarification on the parking requirements for mix use development/agreement.

There was a consensus on all council approving the 600 feet parking requirements.

Mr. Rodriguez requested clarification on direction given for drive-thru. He noted that drive-thru are still allowed through CUP in the mix use zone.

Council member Zamora agreed that he was in approval of this process as long as it is case by case.

Mr. Rodriguez noted it is currently case by case. Therefore, how about across board.

There was a consensus by Council and commissioners to treat is case by case for drive thru requests for all three (3) zones.

Minutes of the February 21, 2023 Special City Council Meeting

Page 4 ends

Mr. Nguyen noted that if the CDC approves the 3rd changes, it will be brought forward to Council and zone changes will need to be implemented immediately.

5. ADJOURNMENT
Mayor Martin and Chair Carbajal adjourned the meeting at 5:55 p.m. ____________________
Juanita Martin
Mayor
ATTEST:
_____________________
Janet Martinez Date
City Clerk
APPROVED:

MINUTES OF THE REGULAR MEETINGS OF THE

CITY COUNCIL
February 21, 2023

1. CALL TO ORDER
Mayor Martin called the meeting to order at 6:00 p.m.

2. ROLL CALL
Members present: Councilmembers/Directors: Rodriguez, Rounds, Zamora, Mayor Pro Tem/Vice Chair Sarno and Mayor/Chair Martin.

Members absent: None.

3. INVOCATION
Invocation was led by Cindy Jarvis.

4. PLEDGE OF ALLEGIANCE
Aaron Doss, member of the Youth Leadership Advisory Committee led the Pledge of Allegiance.

5. INTRODUCTIONS
The following Santa Fe Springs Chamber of Commerce member was introduced:

Diego DeLama, Owner of State Farm Insurance.

PUBLIC FINANCING AUTHORITY

6. CONSENT AGENDA
Consent Agenda items are considered routine matters which may be enacted by one motion and vote.

Any item may be removed from the Consent Agenda and considered separately by the Public Financing Authority.
a. Minutes of the January 24, 2023 Public Financing Authority Meetings (City Clerk) Recommendation:
• Approve the minutes as submitted.
b. Monthly Report on the Status of Debt Instruments Issued through the City of Santa Fe Springs Public Financing Authority (PFA) (Finance)
Recommendation:
• Receive and file the report.

It was moved by Councilmember Zamora, seconded by Councilmember Rodriguez, to approve the Item Nos. 6A through 6B, by the following vote:

Ayes: Rodríguez, Rounds, Zamora, Sarno and Martin.

Nayes: None

Absent: None
ATTACHMENT 2
Minutes of the February 21, 2023 Housing Successor, Successor Agency, and City Council Meetings

Page 2 ends

WATER UTILITY AUTHORITY

7. CONSENT AGENDA
Consent Agenda items are considered routine matters which may be enacted by one motion and vote.

Any item may be removed from the Consent Agenda and considered separately by the Water Utility Authority.
a. Minutes of the January 24, 2023 Water Utility Authority Meetings (City Clerk) Recommendation:
• Approve the minutes as submitted.
b. Monthly Report on the Status of Debt Instruments Issued through the City of Santa Fe Springs Water Utility Authority (WUA) (Finance)
Recommendation:
• Receive and file the report.
c. Status Update of Water-Related Capital Improvement Projects (Public Works) Recommendation:
• Receive and file the report.

It was moved by Councilmember Rounds, seconded by Mayor Pro Tem Sarno, to approve Item Nos. 7A through 7C, by the following vote:

Ayes: Rodríguez, Rounds, Zamora, Sarno and Martin.

Nayes: None

Absent: None

NEW BUSINESS

8. Amendment No. 1 to Water Delivery Agreement Between the Cities of Whittier and Santa Fe Springs Utility Authorities (Public Works)
Recommendation:
• Approve Amendment No. 1 to Water Delivery Agreement between the Cities of Whittier and Santa Fe Springs Utility Authorities and authorize the Executive Director to execute the Amendment.

Yvette Kirrin, Interim Director of Public Works provided a brief presentation on item no. 8.

It was moved by Mayor Pro Tem Sarno, seconded by Councilmember Zamora, to approve the Item No. 8, by the following vote:

Ayes: Rodríguez, Rounds, Zamora, Sarno and Martin.

Nayes: None

Absent: None

HOUSING SUCCESSOR

Minutes of the February 21, 2023 Housing Successor, Successor Agency, and City Council Meetings

Page 3 ends

Minutes of the January 24, 2023 Housing Successor Meetings (City Clerk) Recommendation:
• Approve the minutes as submitted.

It was moved by Councilmember Rodriguez, seconded by Councilmember Rounds, to approve the minutes as submitted, by the following vote:

Ayes: Rodríguez, Rounds, Zamora, Sarno and Martin.

Nayes: None

Absent: None

SUCCESSOR AGENCY

Minutes of the January 24, 2023 Successor Agency Meetings (City Clerk) Recommendation:
• Approve the minutes as submitted.

It was moved by Councilmember Zamora, seconded by Mayor Pro Tem Rounds, to approve the minutes as submitted, by the following vote:

Ayes: Zamora, Sarno, Rodríguez, Rounds, and Martin.

Nayes: None

Absent: None

CITY COUNCIL

11. CONSENT AGENDA
Consent Agenda items are considered routine matters which may be enacted by one motion and vote. Any item may be removed from the Consent Agenda and considered separately by the City Council.
a. Minutes of the January 24, 2023 Special City Council Meetings (City Clerk) Recommendation:
• Approve the minutes as submitted.
b. A Resolution of the City Council Reaffirming the Existence of a Local Emergency Due to the Threat of COVID-19 (pursuant to Government Code section 8630) (City Attorney)
Recommendation:
• Adopt Resolution No. 9847:

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA FE

SPRINGS, CALIFORNIA, REAFFIRMING THE EXISTENCE OF A LOCAL EMERGENCY DUE TO THE THREAT OF COVID-19.

Minutes of the February 21, 2023 Housing Successor, Successor Agency, and City Council Meetings

Page 4 ends

c. A Resolution of the City Council Affirming Authorization of Remote Teleconference Meetings (City Attorney)
Recommendation:
• Adopt Resolution No. 9848:

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA FE

SPRINGS AFFIRMING THE LEGALLY REQUIRED FINDINGS TO

AUTHORIZE THE CONDUCT OF REMOTE TELECONFERENCE
MEETINGS DURING A STATE OF EMERGENCY.
d. Authorize the Purchase of a Fireworks Display for the Independence Day Event from Pyro Spectaculars, Inc.(Community Services)
Recommendation:
• Appropriate $1,850 from the City’s General Fund Reserves; and • Authorize the purchase of a fireworks display in the amount of $25,850 for the 2023 Independence Day event to be held on Monday, July 3, 2023. e. Approve and Authorize the Director of Community Services to Sign Grant Agreement between the Santa Fe Springs City Library and the California State Library (Community Services)
Recommendation:
• Approve and Authorize the Director of Community Services to Sign the Grant Agreement between the Santa Fe Springs City Library and the California State Library for the eBooks for All Project. f. Authorize the Appropriation of $40,000 from Local Return Prop C Funds to Fully Fund the Purchase of a Cut-Away Bus (Finance)
Recommendation:
• Appropriate $40,000 from Local Return Prop C funds to fully fund the Ford E-450 Cut-Away bus; and
• Authorize the Director of Purchasing Services to process a purchase order change order in the amount of $39,741.06.
g. Ordinance No. 1127 – Adopting by Reference the 2022 Edition of the California Fire Code (Fire)
Recommendation:
• Waive further reading and adopt Ordinance No. 1127:

AN ORDINANCE OF THE CITY OF SANTA FE SPRINGS ADOPTING THE 2022 EDITION OF THE CALIFORNIA FIRE CODE, WITH AMENDMENTS, BY AMENDING SECTIONS 93.01, 93.03 AND 93.04 OF CHAPTER 93 (FIRE PREVENTION AND PROTECTION) OF THE SANTA FE SPRINGS

MUNICIPAL CODE, AND REPEALING ALL OTHER ORDINANCES AND
PARTS OF THE ORDINANCES IN CONFLICT THEREWITH.

It was moved by Councilmember Rounds, seconded by Councilmember Rodriguez, to approve the consent agenda, by the following vote:

Ayes: Rodríguez, Rounds, Zamora, Sarno and Martin.

Nayes: None

Absent: None
Minutes of the February 21, 2023 Housing Successor, Successor Agency, and City Council Meetings

Page 5 ends

PUBLIC HEARING

12. Annual Weed Abatement Program (City Clerk)
Recommendation:
• Open the Public Hearing;
• Receive any comments from the public wishing to speak on this matter and thereafter close the Public Hearing; and
• Direct the Los Angeles County Agricultural Commissioner/Weights & Measures to abate the nuisance by having weeds, rubbish, and refuse removed.

Mayor Martin opened the public hearing at 6:12 p.m.

The following persons spoke during public comment: Bruce Crow Mayor Martin closed the public hearing at 6:14 p.m.

It was moved by Councilmember Rounds, seconded by Mayor Pro Tem Sarno, to approve direction to the Los Angeles County Agricultural Commissioner/Weights & Measures to abate the nuisance by having weeds, rubbish, and refuse removed, by the following vote:

Ayes: Rodríguez, Rounds, Zamora, Sarno and Martin.

Nayes: None

Absent: None

NEW BUSINESS

13. Approval of Professional Services Agreement Between the City of Santa Fe Springs and Koff & Associates for the Executive Recruitment for City Manager and Related Appropriation (Finance)
Recommendation:
• Approve the professional services agreement for the executive recruitment for City Manager with Koff & Associates.
• Appropriate $25,000 from the General Fund reserves to budget activity 10109000-542050.

Debbie Ford, Human Resource Manager provided a brief presentation on item no. 13.

It was moved by Councilmember Zamora, seconded by Councilmember Rounds to approve the professional services agreement for the executive recruitment for City Manager with Koff & Associates and appropriate $25,000 from the General Fund reserves to budget activity 10109000-542050, by the following vote:

Ayes: Rodríguez, Rounds, Zamora, Sarno and Martin.

Nayes: None

Absent: None

14. PRESENTATIONS
a. Milestone Presentation (City Manager)
b. Proclamation – Proclaiming the Month of March 2023 as “National Reading Month” in Santa Fe Springs (Community Services)
Minutes of the February 21, 2023 Housing Successor, Successor Agency, and City Council Meetings

Page 6 ends

c. Proclamation – Proclaiming the Month of March 2023 as “National Development Disabilities Awareness Month” (Community Services)
d. 2023 Youth Leadership Committee Annual Retreat at Green Valley Lake, CA and Recognition of Retreat Sponsor, Serv-Wel Disposal & Recycling (Community Services)
e. Introduction of Department of Community Services Newly Hired and Recently Promoted Employees (Community Services)

15. PUBLIC COMMENTS
The following members of the public were present to make a comment: Lee Squire, Bruce Crow, and Dan Haskins.

16. CITY MANAGER’S AND EXECUTIVE TEAM REPORTS
• Interim City Manager, Tom Hatch spoke in regards to the various meetings he’s had with staff and the information that has been provided. Acknowledged the management team and the City Manager’s Office staff.
• Director of Community Services, Maricela Balderas spoke in regards to the Family Day camp; the President’s Day Penny Carnival; Thursday’s Club; STEAM program; Valentines dance. She also announced the upcoming SFS Art Fest scheduled for April 28th from 3PM-11PM.
• Finance Manager, Lana Dich spoke about February 15th Human Resources staff attended a job Fair at Cal State University Dominguez Hills. • Fire Chief, Chad Van Meeteren spoke about last week’s staff completing the annual host testing.
• Director of Police Services, Dino Torres, spoke in regards the Silver Shield award event that recognized the Whittier Police officers. • Director of Planning, Wayne Morrell introduced Vince Velasco, planning associate to provide a brief presentation on last year’s accomplishments made by staff and city’s planning commission.
• Interim Director of Public Works, Yvette Kirrin introduced the management staff. She also spoke in regards to recent accomplishments done by Public Works staff. She elaborated the types of accomplishments for the following divisions: Water Department; Maintenance; and Engineering.

17. APPOINTMENTS TO BOARDS, COMMITTEES, COMMISSIONS
There were no appointments.

18. COUNCIL COMMENTS
Council Member Rodriguez acknowledged staff, she also spoke in regards to the following: valentines dance, Los Nietos event, and penny carnival. She requested Interim Director of Public Works to look into when the Bartley project will be moving forward. Last, she gave the condolence to Bishop Collins’ family and friends.

Council Member Rounds thanked all the community members for joining during meetings and events. Also spoke in regards to the valentines dance; penny carnival; He also spoke in regards to the Youth Leadership Committee, acknowledged their Minutes of the February 21, 2023 Housing Successor, Successor Agency, and City Council Meetings

Page 7 ends

participation and staff’s support. He acknowledged Serv-well for always giving back to the community. Congratulated the newly promoted employees and new hire. He acknowledged all department directors and programs they have for the community.

Council Member Zamora echoed Council’s previous comments in acknowledging staff.

Also, acknowledged military services. Thanked the police officers for their services. Last, acknowledged the 97 year old resident.

Mayor Pro Tem Sarno requested for Interim Director Public works, Yvette Kirrin to look into moving forward with the Traffic Study for the following meeting. He also spoke about attending the penny carnival event. He acknowledged staff for the programs that are putting together for the community. Thanked the Interim City Manager, Tom Hatch for his work.

Mayor Martin acknowledged Interim City Manager, Tom Hatch. She also spoke about having the City moving forward and acknowledged staff and City residents for working on the pool project. Last, she spoke about the POW flag.

19. ADJOURNMENT
Mayor Martin adjourned the meeting at 7:34 p.m. in memory of Debbie Betancourt. ____________________
Juanita Martin
Mayor
ATTEST:
_____________________
Janet Martinez Date
City Clerk
City Council Meeting March 21, 2023
Report Submitted By: Paul Martinez
Date of Report: March 16, 2023
Finance & Administrative Services
City of Santa Fe Springs

CONSENT AGENDA
Authorize the Purchase of One (1) Toyota Sienna Hybrid Disabled Passenger Van from A-Z Bus Sales and Appropriate $33,000 from Local Return Prop C Funds to Fully Fund this Purchase

BACKGROUND
In the fiscal year 2021-22 budget, City Council approved $51,000 for the purchase of a Braun Ability Dodge Caravan disabled passenger van. We had no responses to our bid request when we solicited for this purchase. Conversations with vendors confirm that this vehicle is unavailable from the manufacturer and a timeline as to when the manufacturer will make them available is unclear.

It has been the practice to buy American for City vehicles, but the last couple years have recognized both rising costs and an unpredictable availability of vehicles. With the unknown availability, staff recommends purchasing outside our buy American practice and procure this Toyota model vehicle.

City Transportation & Fleet Supervisors have explored alternative vehicle options and have established that the Toyota Sienna disabled passenger van will meet the needs of the City’s Transportation Division. This unit has a side entry in-floor slide-out ramp and the passenger layout can be configured to transport two wheelchairs, two ambulatory passengers, and the driver.

The Director of Purchasing Services recommends awarding this order to A-Z Bus Sales based on the lowest received bid.

Vendor Quoted Price_____
A-Z Bus Sales $83,952.73
Northwest Bus Sales $89,499.48
Transportation Equipment Sales Co. $91,383.50

FISCAL IMPACT
This unit is $33,000 over the Council approved budgeted amount; although, there is no impact to the general fund as funds to purchase this vehicle will be taken from Local Return Prop C funds which are designated for transportation projects.

RECOMMENDATION
• Authorize the purchase of (1) Toyota Sienna hybrid disabled passenger van by awarding an order to A-Z Bus Sales; and
• Appropriate $33,000 from Local Return Prop C funds to fully fund this purchase; and
• Authorize the Director of Purchasing Services to process a Purchase Order in the amount of $83,952.73 to A-Z Bus Sales.

ITEM NO. 10B
City Council Meeting March 21, 2023
Report Submitted By: Paul Martinez
Date of Report: March 16, 2023
Finance & Administrative Services
City of Santa Fe Springs
Tom Hatch
Interim City Manager
Attachment(s):

1. A-Z Bus Sales Quote

2. Northwest Bus Sales Quote

3. Tesco Quote
Legal Name: Date: 3/2/2023
Address: County:

City: State: Zip Code: 90670
Contact: Office: Fax:

Email Address: Cell:

Sales Representative
A/P Contact Name: Ph#
Vehicle Description: Price
Model Year 2022 Make: Model:

Type: Handicap Van Chassis: Wheelchair Lift Type:

Passenger Capacity: 5 Ambulatory Wheelbase: Number of Tie Downs:

Seat Fabric: Engine: Alternator:

Air Conditioning System: Yes GVWR: Other:

Exterior Color/Graphics: Body Length: Estimated Delivery:
3/2/2023
Vehicle Delivery Address:

DMV Registration Information
Sales Tax Santa Fe Springs 10.50% 5,422.73
Cash Deposit
Trade In Allowance
Net of Deposits/Trade Ins
Balance Due on Delivery
Offered by:

Representative Date Purchase Date
Print Name Title
Agreed and Accepted by:

Purhcaser agrees that this Order is inclusive all information contained herein and Addendum attached; that this Order cancels and supersedes any prior agreement; and as of the date indicated herein comprises the complete and exclusive statement of the terms of the agreement relating to the subject matters covered hereby; and that this order shall not become binding until accepted by dealer; this sales order may be terminated by the seller at any time at its sole descretion. All pricing is inclusive of and net of manufacturer rebates and concessions, rebates or concessions shall be retained by dealer.

[email protected]
$ 83,952.73
$ -
$ -
Cole Crockett Payment Type:
2022 Toyota Sienna AWD Northstar E - 22C204

QUOTATION SUMMARY
$ 78,450.00
Delivery to Customer $ -
Total Price Per Bus $ 83,952.73
Quantity 1
Total Sales Order Amount
Documentation Fee $ 80.00
Joe Barrios
Hybrid

PRICING SUMMARY
All Specs in PDF
Quotation is Valid for 30 Days and subject to pricing changes and option availability until executed by the customer.

SPECIFICATION SUMMARY
Sienna Ramp
Toyota Sienna
STOCK#
Santa Fe Springs
11710 E. Telegraph Road

SALES AGREEMENT
Trade Ins:
2 ADA Equipment Amount (non-taxable) $ 26,885.00
NOW (14 Days for PDI/Delivery)
Dealer Added Options $ -
Vehicle as Specified $ 78,450.00

SALES ORDER
Santa Fer Springs CA
Total Cash Price $ 78,450.00
$ 83,952.73
Tire Recycle Fee (California only) Lien Holder
Registration Type
Lien Holder Name:

Total Taxable Amount $ 51,645.00
Estimated DMV Fees
Register to Address:

Lien Holder Addr:

ATTACHMENT 1
Legal Name: Date: 3/2/2023
Address: County:

City: State: Zip Code: 90670
Contact: Office: Fax:

Email Address: Cell:

Sales Representative
A/P Contact Name: Ph#
[email protected]
Cole Crockett Payment Type:

Joe Barrios
STOCK#
Santa Fe Springs
11710 E. Telegraph Road

SALES AGREEMENT
Trade Ins:

Santa Fer Springs CA

TERMS AND CONDITIONS OF SALE
Accepted and Agreed by:
(Date)
Signor’s Name and Title:
(Must be an officer of the company authorized to approve capital purchases.) Company Signer represents, on behalf of Purchaser, that he/she is duly authorized by Purchaser to bind Purchaser in this agreement.

Signature

7. REQUIRED EQUIPMENT. This order shall be deemed to include, whether or not specified herein, all equipment or accessories required by the National Highway Traffic Safety Act or other regulations in effect at the time of order receipt. It is agreed that any additional or different equipment not specified which is required at the time of delivery to meet the foregoing Act or other regulations will be added and the costs shall be paid by Purchaser.

ALL WARRANTIES, IF ANY, BY A MANUFACTURER OR SUPPLIER OTHER THAN SELLER ARE THEIRS, NOT SELLER’S, AND ONLY SUCH MANUFACTURER OR OTHER SUPPLIER SHALL BE LIABLE FOR PERFORMANCE UNDER SUCH WARRANTIES. SELLER HEREBY DISCLAIMS ALL WARRANTIES, EXPRESSED OR IMPLIED, INCLUDING ANY IMPLIED WARRANTIES OF MERHCANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE.

This Agreement (including by reference the provisions set out in manufacturer’s standard warranty or warranties) shall constitute the entire agreement between Purchaser and Seller, and no understandings or obligations not expressly set forth herein or in manufacturer’s standard warranty or warranties are binding upon Purchaser or Seller.

2. TERMS OF PAYMENT. Unless otherwise agreed, net payment shall be due on delivery. Late payments shall bear interest at the rate of 18% per annum, or the maximum permitted under law, whichever is less. If acceptance of delivery is delayed by Purchaser, payment shall become due on the date when Seller is prepared to deliver. If the financial condition of Purchaser at any time does not, in the judgment of Seller, justify continuance of the work to be performed by Seller hereunder on the terms of payment as agreed upon, Seller may suspend such work, or postpone delivery, and require such assurances of Purchaser’s performance as Seller deems adequate, including payment in advance, or Seller may cancel this order and shall receive reimbursement for its reasonable and proper cancellation charges. In the event of bankruptcy or insolvency of Purchaser, voluntary or involuntary, Seller shall be entitled to cancel any order then outstanding at any time and seek reimbursement for its reasonable and proper cancellation charges.

3. CANCELLATION. Purchaser may cancel this order only if Seller is able to cancel said order with the manufacturer, and only upon written notice. Upon any cancellation or failure to accept delivery, Purchaser shall pay Seller reasonable cancellation charges and expenses, not to be less than Seller’s out-of-pocket expenses including carrying costs. (Purchaser’s Initials)

4. SALES AND OTHER TAXES. Unless otherwise specified herein, Seller’s price does not include federal excise, sales, use, or other taxes. Consequently, in addition to the price specified herein, the amount of any other excise, sales, use, or other tax applicable to the sale or use of the bus(es) purchased hereunder shall be paid by Purchaser, or in lieu thereof Purchaser shall provide Seller with a tax exemption certificate acceptable to the taxing authorities. Purchaser agrees that all taxes related to this transaction, whether arising at the time of the transaction or in the future, are Purchasers responsibility and further agrees to promptly pay any such taxes.

5. DELIVERY. All buses furnished hereunder shall be delivered to Purchaser at the Seller’s dealership location or other location as designated in this Agreement. Unless otherwise provided, delivery will be made via carriers and routes designated by manufacturer with freight charges to be included in the purchase price. Delivery dates are approximate and are based upon receipt of all necessary information from Purchaser. Seller shall not be liable for delays in delivery or manufacturing, or other causes beyond Seller’s control.

8. TITLE AND REMEDIES. Until full payment by Purchaser of all amounts due hereunder, Seller reserves the title to all equipment furnished hereunder. If Purchaser defaults in payment or performance hereunder or becomes subject to insolvency, receivership, or bankruptcy proceedings, or makes an assignment for the benefit of creditors, or without the consent of Seller voluntarily or involuntarily sells, transfers, leases, or permits any lien or attachment on the equipment delivered hereunder, Seller may treat all amounts then or thereafter owing hereunder by Purchaser as immediately due and payable (subject only to credits required by law) and Seller may repossess said equipment by any means available by law and shall enjoy any and all other remedies of a secured creditor under the Uniform Commercial Code.

Purchaser shall execute and deliver to Seller such financing statements and other documents, as Seller may deem appropriate to evidence, perfect, and protect the priority of its security interest in the bus(es) subject to this order.

9. GENERAL. Any assignment by Purchaser of this order or any rights hereunder, without written consent of Seller, shall be void. Clerical errors in this order may be automatically corrected by giving written notice thereof to Purchaser by a duly authorized representative of Seller. No waiver, alteration, or modification of any of the provisions hereof shall be binding unless and until in writing and signed by a duly authorized representative of Seller. To the extent not covered by other terms herein, including terms of warranty and limitation of liability, etc., the provisions of the Uniform Commercial Code shall govern this sale.

6. TECHNICAL CHANGES. Purchaser acknowledges that the manufacturer and Seller reserve the right to change the specifications of the bus(es) at any time without obligation to make such changes in other buses previously delivered to Purchaser. In addition, manufacturer and Seller reserve the right to make design changes and substitution of materials subsequent to the receipt of the order which, in manufacturers or Seller’s opinion are necessary to improve the bus. Purchaser agrees to accept any such changes as fulfillment of Seller’s obligations under this order.

1. TRADE-IN(S). Purchaser shall deliver trade-in(s) in the same condition as at time of inspection and appraisal by Seller reasonable wear and tear excepted, except as disclosed in the Agreement.

Purchaser represents that each bus shall be free and clear of all liens and encumbrances and warrants that the trade-in(s) are that type and condition described in this Agreement, including any attachments hereto.

ATTACHMENT 2
ATTACHMENT 3
City of Santa Fe Springs
City Council Meeting March 21, 2023
Report Submitted By: Yvette Kirrin Date of Report: March 16, 2023 Interim Director of Public Works

CONSENT AGENDA
Amendment Number One to Professional Services Agreement with Ron’s Maintenance, Inc. for Catch Basin Maintenance Services to Exercise One-Year Renewal Option

BACKGROUND
On March 16, 2021, the City entered into a contract with Ron’s Maintenance, Inc. (RMI) to provide catch basin maintenance services. The City has approximately 397 catch basins within its boundaries. These catch basins are required to be regularly inspected and cleaned to ensure proper operation of the drainage system and protect water quality. The City is responsible for maintaining all catch basins within the City’s boundaries and service them a minimum of three times during the wet season (October through April) and once during the dry season (May through September).

The annual cost to perform the catch basin inspection and cleaning by Ron’s Maintenance Inc. is $39,700, an increase of $7,940 due to increased materials and operating costs. The Agreement provides for two one-year renewals, and the City Council exercised the first one-year renewal last year. Staff recommends renewing the contract for an additional year, since the work performed has been satisfactory and in compliance with the MS4 permit. Renewing the contract with RMI will ensure that the catch basins operate at maximum efficiency and protect water quality.

LEGAL REVIEW
The City Attorney’s office prepared Amendment Number One to the Agreement.

FISCAL IMPACT
Catch basin cleaning and inspections is budgeted within the Public Works Operation and Maintenance Fiscal Year 2022/2023 budget There is sufficient funding available within the budget to cover the annual contract amount of $39,700.

INFRASTRUCTURE IMPACT
Catch basin inspection and cleaning will provide improved street drainage and ensure compliance with the City's MS4 permit and all other storm drain regulations.

Tom Hatch
Attachments: Interim City Manager

1. Amendment Number One

2. Professional Services Agreement with Ron's Maintenance, Inc.

RECOMMENDATION
• Approve Amendment Number One to Professional Services Agreement with Ron's Maintenance, Inc. to exercise the second one-year renewal option. • Authorize the Mayor to sign Amendment Number One.

ITEM NO. 10C

AMENDMENT NUMBER ONE TO

PROFESSIONAL SERVICES AGREEMENT
WITH RON’S MAINTENANCE, INC.

This Amendment Number One (“Amendment”) is made and entered into this 21st day of March, 2023, by and between the City of Santa Fe Springs (“City”) and Ron’s Maintenance, Inc. (“Contractor”).

WHEREAS, on March 16, 2021, the City and Contractor entered into an agreement for Contractor to provide catch basin cleaning and maintenance services throughout the City services (“Agreement”); and
WHEREAS, the Agreement provides for an initial term through March 31, 2022, and two one-year renewals; and
WHEREAS, the parties exercised the first one-year renewal on March 15, 2022, with compensation of $39,700.00, which reflected an increase of $7,940.00 due to materials and operating costs; and
WHEREAS, the parties desire to exercise the second one-year renewal option.

NOW, THEREFORE, in consideration of the mutual covenants and conditions set forth herein, the parties agree as follows:

1. Pursuant to Section 4.1 of the Agreement, the term of the Agreement is renewed through March 31, 2024.

2. Section 2.1 of the Agreement is amended to reflect an annual compensation amount of $39,700.00.

3. Except as amended herein, all terms, conditions, and provisions of the Agreement shall remain in full force and effect.

IN WITNESS WHEREOF, the parties hereto have set their hand by their duly authorized representatives as of the day and year first above written.

CITY OF SANTA FE SPRINGS RON’S MAINTENANCE, INC.
____________________________ ____________________________ Juanita Martin, Mayor Ronnie E. Norman, President
Date: ______________________ Date: _______________________ ATTEST:
__________________________
Janet Martinez, City Clerk
APPROVED AS TO FORM:

Ivy M. Tsai, City Attorney
DocuSign Envelope ID: B8CC330E-DA6C-4113-A51C-364D263547BD DocuSign Envelope ID: B8CC330E-DA6C-4113-A51C-364D263547BD DocuSign Envelope ID: B8CC330E-DA6C-4113-A51C-364D263547BD DocuSign Envelope ID: B8CC330E-DA6C-4113-A51C-364D263547BD DocuSign Envelope ID: B8CC330E-DA6C-4113-A51C-364D263547BD DocuSign Envelope ID: B8CC330E-DA6C-4113-A51C-364D263547BD DocuSign Envelope ID: B8CC330E-DA6C-4113-A51C-364D263547BD DocuSign Envelope ID: B8CC330E-DA6C-4113-A51C-364D263547BD DocuSign Envelope ID: B8CC330E-DA6C-4113-A51C-364D263547BD DocuSign Envelope ID: B8CC330E-DA6C-4113-A51C-364D263547BD DocuSign Envelope ID: B8CC330E-DA6C-4113-A51C-364D263547BD DocuSign Envelope ID: B8CC330E-DA6C-4113-A51C-364D263547BD 5/5/2021
DocuSign Envelope ID: B8CC330E-DA6C-4113-A51C-364D263547BD City Council Meeting March 21, 2023
Report Submitted By: Maricela Balderas/ Ed Ramirez Date: March 16, 2023 Department of Community Services
City of Santa Fe Springs

CONSENT AGENDA
2023 SFS Art Fest Traffic Control Plan - Request for Approval

BACKGROUND
The City of Santa Fe Springs’ 2023 Art Fest will take place on Thursday, April 27 and Friday, April 28, 2023 at the Clarke Estate, located at 10211 Pioneer Blvd. Through the guidance and direction of the Heritage Arts Advisory Committee (HAAC), the event continues to grow in scope and participation has increased with over 300 artists and students participating and showcase their art in a variety of media. An estimated 3,000 guests attend this festival annually.

With this continued growth, also come challenges with pedestrian foot and vehicle traffic. The City holds an agreement with Omninet Property Management, Inc. to allow use of their parking lot at 10100 Pioneer Blvd., directly across the street from the Clarke Estate. Annually, staff place signage along the curbside of Pioneer encouraging pedestrians to use the crosswalk, yet, staff has identified the need to reduce vehicle speed along Pioneer Blvd. This traffic plan will help mitigate this challenge. The 2023 SFS Art Fest traffic plan will reduce both North and South Pioneer to one lane and reduce speed to a 25 mph zone. The plan exhibit denotes the locations of lane and road reductions, the placement of traffic control devices and stationing of Portable Changeable Message Signage (PCMS) along the traffic area of the event.

The City is required to obtain insurance coverage as recommended by the California Joint Powers Insurance Authority (CJPIA) which is done annually for the event; however, the CJPIA requires City Council approve traffic control plans for the proposed city street modifications for the 2023 SFS Art Fest event. The traffic control plan is available for review at the office of the City Clerk.

Tom Hatch
Interim City Manager
Attachment

1. City of Santa Fe Springs Art Festival Traffic Plan

RECOMMENDATION
• Approve the traffic control plans prepared for the lane closures and speed reduction in the area of Pioneer Boulevard and Telegraph Road for the 2023 Art Fest on April 27 and April 28, 2023.

ITEM NO 10D

HATHAWAY

IDALENE ST

GLENWORTH

PARKMEAD ST

GARETAL ST

DUNNING ST
ST
S P

SLUSHER DR

MATERN DR

MORA DR

MATERN PL

HERITAGE PARK DR

ONTIVEROS

HATHAWAY

S P R R

WILLAKE ST
HAMDEN

PL PIONEER BLVD

CLARKMAN ST
CLARKE
ESTATE
R3-18
R3-18
R3-18
R3-18
R11-2
C30
C30
C30
250'
C20 (CA)
250'
SC5
250'
C30
C30
R3-1 CITY HALL
TOWN

CENTER LIBRARY
TELEGRAPH RD 540' TAPER 350' 350'
R2-1(25)
C20(CA)
SC5
C30
R2-1(25)
R3-7
R3-1
W3-5(25)125'
C30
C30
C30
C30

PARKING

PARKING
R3-5(R)
R9-3BP(R)
R9-3BP(R)
R9-3BP(L)
PCMS
PCMS
PCMS
PCMS
PCMS
NOTES:
-PORTABLE CHANGEABLE MESSAGE SIGNS(PCMS) ARE TO BE PLACED AND MUST INFORM PEOPLE 72 HOURS PRIOR TO THE EVENT.

PCMS
PCMS
PCMS
PCMS
"EVENT PARKING UP AHEAD"
"EVENT PARKING"
----->
"EVENT PARKING"
----->
W3-5(25)
R3-18

FAS(NB)

FAS(SB) PIONEER BLVD

FLORENCE AVENUE
PCMS

TRAFFIC SIGNS

DELINEATORS
QTY. =36
QTY.=126

TRAFFIC SIGNS
R2-1(25) QTY. = 2
R3-1 QTY. = 2
R3-7 QTY.= 1
R3-18 QTY. = 5
R11-2 QTY. = 1
C20(CA) QTY. = 2
C30 QTY. = 10
SC5 QTY. = 2
W3-5(25) QTY. = 2
PCMS QTY.= 10
R9-3BP(R) QTY.= 2
R9-3BP(L) QTY.= 1
R3-5(R) QTY.= 1
LEGEND
CITY OF SANTA FE SPRINGS "ART FESTIVAL"

TRAFFIC CONTROL PLAN
NOTES:
-PORTABLE CHANGEABLE MESSAGE
SIGN(PCMS) ARE TO BE PLACED 72 HOURS

PRIOR TO EVENT WARNING PEDESTRIANS
TO THE EVENT.
-NEARBY RESIDENT HOMES AND

BUSINESSES MUST BE NOTIFIED OF EVENT
72 HOURS IN ADVANCE.

BARRICADES QTY.=9
FAS SIGNS QTY.=2
Attachment #1
City of Santa Fe Springs
City Council Meeting March 21, 2023
Report Submitted By: Wayne. Morrell, Director Date of Report: March 16, 2023 Department of Planning.

CONSENT AGENDA
Request for Out-of-State Travel for the Director of Planning and Assistant Director of Planning, to attend the 2023 International Council of Shopping Center (ICSC)-RECon in Las Vegas (May 21-23, 2023), and for the Director of Planning to attend the 2023 American Planning Association (APA) Annual Conference in Philadelphia ( April 1-4, 2023)
BACKGROUND/ICSC RECon 2023
Founded in 1957, the International Council of Shopping Centers (ICSC) is an organization that ensures the retail real estate industry is recognized for the integral role it plays in the social, civic, and economic vibrancy of communities all over the world. With over 700,000 members, the ICSC focuses on:
 Building communities: Retail real estate properties are not only about financial profits but also building a community for friends and families to experience life together.
 Fueling economies: Retail real estate properties are vital to economic development and create jobs, stabilize GDP and drive the economy forward.  Inspiring innovation: Retail real estate shapes social practices, business policies and technologies of the future.

ICSC 2023 Las Vegas is the one-stop for education, networking and deal-making. This three-day event offers opportunities to learn about industry trends, network with other industry professionals and make deals with colleagues in the same region. The ICSC conference is scheduled to take place May 21-23, 2023 at the Las Vegas Convention Center in Las Vegas, Nevada.

The ICSC conference offers a range of unique networking and educational opportunities for exhibitors. Attending this event gives you a chance to meet some of the biggest names in the industry and spark new business deals, including:
 Connecting with top-tier, iconic brands
 Gaining thought leadership and perspectives from industry-leading experts  Opportunities for networking and deal-making on the largest industry show floor RECOMMENDATIONS:
• Approve out-of-state travel for the Director of Planning and Assistant Director Planner to attend the 2023 International Council of Shopping Center (ICSC) – RECon in Las Vegas (May 21-23, 2023); and
• Approve out-of-state travel for the Director of Planning to attend the 2023 American Planning Association (APA) Annual Conference in Philadelphia (April 1- 4, 2023).

ITEM NO. 10E
Request For Out-of-State Travel Page 2 of 3
Report Submitted By: Wayne. Morrell, Director Date of Report: March 16, 2023 Department of Planning
.
 Career-building and professional development opportunities  Programming focused on innovations across retail real estate Similarly, to last year, the City will have its own 10ʹ x 10ʹ space within the P3 Pavilion.

The P3 Pavilion is an area in the convention center designated for cities and municipalities. Having a space will provide an area to sit and meet with prospective retailers and to continue the City’s effort to network and to bring certain businesses to the City. It is also an opportunity to highlight the amenities of the City and the various development opportunities. Moreover, it offers the prospect of matching the right developer(s) with specific developable properties.

BACKGROUND/APA 2023
The American Planning Association (APA) is holding its annual conference April 1, 2023 through April 4, 2023, in Philadelphia, Pennsylvania. The APA is an independent, not-for-profit educational organization that was organized exclusively for charitable, educational, literary and scientific purposes, to advance the art and science of planning and the activity of planning, physically, economically, and socially, at the local, regional, state and national level.

A function of the APA is to educate policy makers and partners on planning issues and advocate policy changes to incorporate planning principals at all levels of government.

Within the APA is the American Institute of Planners, the organization that is responsible for the national certification of professional planners.

The Director of Planning has been a member of APA for many years; however, the last time he attended a national conference was in 2018. The 2023 conference will feature a variety of sessions and discussion forums on topics such as Smart City InitiativesLessons Learned, Intersection of Freight, Freight, Freight, and Freight, Charge On! Preparing for an Electric Mobility Future, Yes-Transit Can Support Affordable Housing, You’re the Messenger: Demonstrating Value to Elected Officials, A Planning Chat with ChatGPT, HUD and Planning for Housing Supply and Affordability, Building Sustainable Affordable Housing at All Income Levels, and Dollar and Sense: Building Publicly Desired Amenities.

This event will not only provide an opportunity to develop relationships, see what others within the planning field are doing, but also an opportunity to find new and innovative approaches to address local issues. Additionally, it is a means to keep current with industry best practices, trends and pending legislation.

Request For Out-of-State Travel Page 3 of 3
Report Submitted By: Wayne. Morrell, Director Date of Report: March 16, 2023 Department of Planning
.

FISCAL IMPACT
The projected costs are as follows: ICSC-RECon 2023
The projected costs are as follows: APA 2023
Airfare $1,021.00
Hotel $2,024.77
Conference $1,010.00
Per Diem Food $TBD
Travel to/from airport $TBD
Total $4,055.77
The total projected cost, excluding TBD’s, is $9,035.57. The money in the budget, that would cover these expenses and incidentals, would come from the following accounts:
103155-540030 ($4,979.80) and 10103199-540030 ($4,055.77).

INFRASTRUCTURE IMPACT
There will be no infrastructure impacts
Tom Hatch
Interim City Manager
Wayne Cuong Booth Total $
Airfare N/A
(driving)
$178.97 N/A $178.97
Hotel $1,167.04 $1,167.04 N/A $2,334.08
Booth (10ʹx10ʹ) N/A N/A $1,550 $1,550.00
Booth Rentals N/A N/A $916.75 $916.75
Promotional Items N/A N/A $TBD
Per Diem Food TBD TBD
Travel to/from airport N/A TBD
Total $4,979.80
City Council Meeting March 21, 2023
Report Submitted By: Paul Martinez Date of Report: March 16, 2023 Finance Department
City of Santa Fe Springs

CONSENT AGENDA
Upgrade the City Hall Campus Phone System Network to Avaya IP Office

BACKGROUND
The City Hall campus phone network includes City Hall, Library, Town Center Hall, Aquatic Center, Clarke Estate and Betty Wilson Center. The City Hall campus buildings are linked by physical fiber connections and the Betty Wilson Center is connected via VoIP (Voice over Internet Protocol). The phones on the City Hall campus all operate off the Nortel/Avaya Option 61C phone switch located in the upstairs phone room at City Hall.

The City Hall campus phone switch is connected to a larger network of City facilities which include the Gus Velasco Neighborhood Center, Heritage Park, Activity Center, Municipal Services Yard including Police Staging, Police Service Center, Fire Headquarters and Fire Stations 2, 3, & 4. The network as a whole allows for the transfer and 4-digit dialing of extensions between facilities. In recent years we have systematically upgraded network hardware at each of the remote facilities to Avaya IP Office for the phone switch and Avaya IP Voice Mail Pro for the voice mail.

The City Hall campus phone switch (Option 61C) was installed in 2002 and has proven robust but is beyond the manufacturer’s functional lifecycle. While parts are no longer in production they may be available on the grey market without assurance of availability. Without the assurance of parts availability this could lead to possible prolonged downtimes or potentially the inability to repair the phone switch altogether.

Replacing the Option 61C phone switch on the City Hall campus will complete the phone network upgrades and fully integrate all networked facilities to the Avaya IP Office product. Phone maintenance agreements and the availability of parts would provide a level of confidence of increased uptimes and when necessary, timely repairs.

FISCAL IMPACT
Also on tonight’s agenda is the approval of mid-year budget modifications. If approved, $160,000 will be added to the non-recurring budget for fiscal year 2022-23 for the phone system network upgrades. The quote for this upgrade is $128,505.73 for the hardware, licenses, and professional services. The contingency would cover

RECOMMENDATION(S)
• Authorize the purchase of necessary hardware and labor from VOX/Waterfield by piggybacking off Omnia Partners Cooperative Contract No. R200803
• Authorize the Director of Purchasing Services to issue a Purchase Order to Vox/Waterfield in the amount of $128,505.73
ITEM NO. 10F
City Council Meeting March 21, 2023
Report Submitted By: Paul Martinez Date of Report: March 16, 2023 Finance Department
City of Santa Fe Springs
Any ancillary hardware that may be discovered during the upgrade as needing replacement.

INFRASTRUCTURE IMPACT
This will complete the City’s phone network upgrade at all our main facilities to Avaya IP Office providing increased network uptimes and the availability of hardware when repairs are necessary.

Tom Hatch
Interim City Manager
Attachment(s):

1. VOX/Waterfield Quote

2. Phone Network Diagram

PROPOSAL
City of Santa Fe Springs
Upg - Op61 replacing OP17487
VERSION QUOTE # DATE PREPARED PREPARED FOR PREPARED BY
4 33590.28 2/2/2023 Paul Martinez
Director of Purchasing Services
Armando Chacon
6509892756
[email protected]
A Waterfield Company www.waterfieldtech.com (650) 989-1000 110 S Hartford Ave Suite 2502 Tulsa, 74120

PROPOSAL - BUDGETARY

TECHNICAL SOLUTIONS SUMMARY
City of Santa Fe Springs has an IP Office R11 Server Edition. It is networked to an existing CS1K co-located in the same server room as the IP Office. The IP Office is currently configured with the following:
 Main - City Hall - (IPO Primary/Secondary Server / IP500 V2)  Activity Center - IP500 V2
 Neighborhood Center - IP500 V2
 Child Care Center - IP500 V2
 Municipal Yard - IP500 V2
 Heritage Park - IP500 V2
 Police Service Center - IP500 V2
They would like to migrate their users from the CS1K to the IP Office.

VOX will:
 Provide and install 197 J159 IP Phones
 Add 1 Dual 2 PRI daughterboard for PSTN Access (moved from the CS1K)  Add 1 VCM64 V2 to support Dual PRI
 Add 1 30 port analog stations expansion module
o To support 27 Analog stations
A Waterfield Company www.waterfieldtech.com (650) 989-1000 110 S Hartford Ave Suite 2502 Tulsa, 74120 Page: 2 of 5

PROPOSAL - BUDGETARY

TECHNICAL SOLUTIONS SUMMARY
 Paging Interface to be moved from the CS1K to the IP Office o Using an analog port to connect to existing paging interface  Add 1 Receptionist License
 Add 197 licenses to the IP Office to support the new phones  Administer the stations on the IP Officer
 Provide remote end user 1/2 day Train the Trainer.

Note: 20 new ports were added to Voice Mail pro on a previous project (Down Call Pilot Workaround) Assumptions:
 Customer has CAT5 cabling or better at all the IP Station locations with a POE ethernet switch that supports POE.  IP phone installation will happen during hours
 Any labor that is not service impacting will be done during normal business hours A Waterfield Company www.waterfieldtech.com (650) 989-1000 110 S Hartford Ave Suite 2502 Tulsa, 74120 Page: 3 of 5

PROPOSAL - BUDGETARY
Upg - Op61 replacing OP17487
Prepared by: Prepared for: Quote Information:

Waterfield Technologies City of Santa Fe Springs Quote #: 033590 Armando Chacon
6509892756
[email protected]
11710 Telegraph Road
Santa Fe Springs, CA 90670
Paul Martinez
(562) 409-7535
[email protected]
Version: 4
Delivery Date: 02/02/2023
Expiration Date: 03/02/2023

IP OFFICE - HARDWARE / SOFTWARE
Description Price Qty Ext. Price
2023 OMNIA Pricing - Annual
Applicable Agreement. This Order Form is pursuant to pricing in the OMNIA Partners Contract, Contract No. R200803, Contractor Name: TD SYNNEX. VOX Network Solutions (a Waterfield Tech Company) is an authorized subcontractor. https://www.omniapartners.com/publicsector/suppliers/synnex-corporation/contract-documentation#c38631 185446 AVAYA COMMUNICATIONS SOLUTION $0.00 1 $0.00
182448 IP OFFICE SERVER EDITION MODEL $0.00 1 $0.00
382687 IP OFFICE R10+ RECEPTIONIST 1 LIC:CU $619.00 1 $619.00 383091 IP OFFICE R10+ IP500 T1 ADDITIONAL 2CHANNELS LIC:CU $196.00 16 $3,136.00 383110 IP OFFICE R10+ AVAYA IP ENDPOINT 1 LIC:CU $75.00 197 $14,775.00 700213440 IP OFFICE ISDN CABLE RJ45/RJ45 3M RED $5.05 2 $10.10 700289770 POWER CORD 18AWG 10 Amp AC US/NORTH AMERICA $19.00 1 $19.00 700417462 IP OFFICE IP500 TRUNK CARD PRIMARY RATE UNIVERSAL DUAL $1,670.00 1 $1,670.00 700429202 IP OFFICE IP500 RACK MOUNTING KIT $63.00 1 $63.00 700504032 IP OFFICE MEDIA CARD VOICE (VCM) CODING MODULE 64 V2 $368.00 1 $368.00 700512394 J159 IP PHONE $415.00 197 $81,755.00
700515108 IPO IP500 EXPANSION MODULE PHONE 30 TAA $4,200.00 1 $4,200.00 A Waterfield Company www.waterfieldtech.com (650) 989-1000 110 S Hartford Ave Suite 2502 Tulsa, 74120 Page: 4 of 5

PROPOSAL - BUDGETARY

IP OFFICE - HARDWARE / SOFTWARE
Description Price Qty Ext. Price
185579 MAINTENANCE COMPREHENSIVE SUPPORT MODEL $0.00 1 $0.00 Subtotal: $106,615.10

PROFESSIONAL SERVICES
Description Price Qty Ext. Price
VX-VPS-GP21867 Budgetary Professional Services $21,890.63 1 $21,890.63 Subtotal: $21,890.63

SUMMARY
Description Recurring One-Time
IP OFFICE - HARDWARE / SOFTWARE $0.00 $106,615.10
PROFESSIONAL SERVICES $0.00 $21,890.63
Total: $0.00 $128,505.73
Project Total: $128,505.73

PAYMENT TERMS
Additional Terms
TAX and Shipping/Handling will be added at time of invoice: not included in this SOW/Quote.

VOX Network Solutions, Inc. PROPRIETARYAND CONFIDENTIAL. All information contained herein is confidential and the proprietary information of VOX Network Solutions, Inc. Disclosure of any information contained herein to any other party is strictly prohibited.

A Waterfield Company www.waterfieldtech.com (650) 989-1000 110 S Hartford Ave Suite 2502 Tulsa, 74120 Page: 5 of 5 Gus Velasco Neighborhood Center ( GVNC)
ST#5390629
IP500V2 R10.1 ‐ VMPro 172.16.11.51
Serial ‐ 00e00707e04c Dongle ‐ 1362436552 (14) End points P500V2 R10.1‐ VMPro 172.16.14.51
Serial ‐ 00e0070be502 Dongle ‐ 1368916803(5) End points Police Service CST#51497237
Fire Station HQ
ST#51497237
Option 61C R3.0+ (DC)
Municipal YardST#5403873
IP500V2 R10.1 ‐ VMPro 172.16.9.51Serial ‐ 00e0070734d2 Dongle ‐ 1358238 Heritage ParkST#51449210
IP500V2 R10.1 ‐ VMPro 172.16.12.52 Serial ‐ 00e0070be7b6 Dongle ‐ 1379159153 2 PRI, 32 ITG H.323VM Callpilot R02.01.27 (24Pt)
162 Digital 28 Analog 10 IP
P500V2 R10.1 ‐ VMPro 172.16.12.51
Serial ‐ 00e0070c3626 Dongle ‐ 1380913780
City Hall #ST5366844HP DL360 1721.16.1.50Server Serial ‐ 6c3be5b21f3cServer System ID ‐ 0de649a0be6edfb4fa7ec2eef4bfbd8f6d987020IP500V2 Server Edition R10.1 172.16.1.51Serial ‐ 00e007077460 Dongle ‐ 1353224082 IP500V2 R10.1‐ 172.16.4.51Serial ‐ 00e0070 Dongle ‐ 137295(4) End points IP500V2 RePurposedfrom ChildCare
Activity CenterST#51449209
1 PRI

IP OFFICEIP OFFICE

IP OFFICE

IP OFFICE
Option 61C IP OFFICE
TIE Line
City of Santa Fe Springs
City Council Meeting March 21, 2023
Report Submitted By: Yvette Kirrin, Interim Director Date of Report: March 16, 2023 Department of Public Works

CONSENT AGENDA
City of Bellflower Extension of Agreement for Traffic Signal Maintenance Services

BACKGROUND
The City of Santa Fe Springs has been providing traffic signal maintenance services to the City of Bellflower since October 1995. There was an agreement modification in 2013, to define the scope of work, as well as an update to the number of traffic signals, flashing beacons, etc., under the maintenance contract with Santa Fe Springs. Currently the City of Bellflower has fifty-four (54) signalized intersections at various locations that are 100% within Bellflower’s jurisdiction. Bellflower also has seven (7) yellow flashing beacons, four (4) flashing pedestrian signs with inpavement lighted LED crosswalk and two (2) sets of two (2) radar feedback signs.

There was a five-year agreement extension in 2018 that will expire on April 24, 2023.

Staff recommends extending the agreement for another five (5) years. The Agreement does contain a termination clause where the Agreement can be cancelled by either party after 90 days of written notice.

The scope of work remains unchanged and the monthly charges remain the same, as Santa Fe Springs will continue to provide routine maintenance to the traffic signals and flashing beacons and extraordinary maintenance of the street lights, in-pavement lighting, and radar feedback signs.

LEGAL REVIEW
The City Attorney’s office prepared Amendment Number Ten to the Agreement.

FISCAL IMPACT
This excludes extraordinary maintenance requests by the City of Bellflower.

INFRASTRUCTURE IMPACT
There is no infrastructure impact.

Tom Hatch
Interim City Manager
Attachments

1. Traffic Signal Agreement with the City of Bellflower

2. Traffic Signal Amendment No. 10

3. Traffic Signal Locations from Amendment No. 9

4. Bellflower Maps (C-D)

5. Scope of Services
• Approve the agreement extension with the City of Bellflower to provide Signal Maintenance Services; and
• Authorize the Mayor to execute the Agreement on behalf of the City.

ITEM NO. 10G
ATTACHMENT 1

Page 1 of 1 ends

AMENDMENT NO. 10 TO
AGREEMENT FILE NO. 242.1 BETWEEN

THE CITY OF BELLFLOWER AND

SANTA FE SPRINGS

FOR TRAFFIC SIGNAL, STREET NAME SIGN, AND HIGHWAY LIGHTING

MAINTENANCE
THIS AMENDMENT NO. 10 (“Amendment”) is made and entered into this 21st day of March, 2023, by and between the CITY OF BELLFLOWER, a general law city and municipal corporation (“Bellflower”), and the CITY OF SANTA FE SPRINGS, a general law city and municipal corporation (“Contractor”).

SECTION 1. Section 1 of the Agreement is amended to extend the term of the Agreement for five years, ending April 24, 2028.

SECTION 2. This Amendment may be executed in any number or counterparts, each of which will be an original, but all of which together constitutes one instrument executed on the same date.

SECTION 3. Except as modified by this Amendment, all other terms and conditions of the Agreement remain the same.

IN WITNESS WHEREOF, the parties hereto have executed this contract the day and year first hereinabove written.

CITY OF BELLFLOWER CITY OF SANTA FE SPRINGS
_________________________________ ____________________________ Jeffrey L. Stewart, City Manager Tom Hatch, Interim City Manager ATTEST: ATTEST:
________________________________ _____________________________ Mayra Ochiqui, City Clerk Janet Martinez, City Clerk
APPROVED AS TO FORM: APPROVED AS TO FORM:
_________________________________ ________________________________ Karl H. Berger, City Attorney Ivy M. Tsai, City Attorney ATTACHMENT 2

CITY OF BELLFLOWER

EXHIBIT A

LOCATION FOR MAINTENANCE OF TRAFFIC CONTROL DEVICES
1 of 3
ID No. LOCATION

HIGHWAY

SAFETY LIGHTS

ILLUMINATED

STREET NAME
SIGNS
BLF 1 Alondra Boulevard & Bellflower Boulevard 6 0
BLF 2 Alondra Boulevard & Clark Avenue 4 0
BLF 3 Alondra Boulevard & Cornuta Avenue 2 0
BLF 4 Alondra Boulevard & Eucalyptus Avenue 2 0
BLF 5 Alondra Boulevard & McNab Avenue 2 0
BLF 6 Alondra Boulevard & Ryon Avenue 2 0
BLF 7 Alondra Boulevard & Virginia Avenue 2 0
BLF 8 Alondra Boulevard & Woodruff Avenue 4 0
BLF 9 Ardmore Avenue & Artesia Boulevard 3 0
BLF 10 Ardmore Avenue & Flower Street 4 0
BLF 11 Artesia Boulevard & Bellflower Boulevard 6 0
BLF 12 Artesia Boulevard & Canehill Avenue 2 0
BLF 13 Artesia Boulevard & Clark Avenue 4 0
BLF 14 Artesia Boulevard & Palo Verde Avenue 4 1
BLF 15 Artesia Boulevard & Woodruff Avenue 4 0
BLF 16 Beach Street & Woodruff Avenue 2 0
BLF 17 Bellflower Boulevard & Belmont Street 4 0
BLF 18 Bellflower Boulevard & Somerset Boulevard 4 0
BLF 19 Bellflower Boulevard & Flora Vista Street 4 0
BLF 20 Bellflower Boulevard & Flower Street 4 0
BLF 22 Bellflower Boulevard & Jefferson Street 2 0
BLF 23 Bellflower Boulevard & Oak Street 4 0
BLF 24 Bellflower Boulevard & Park Street 2 0
BLF 25 Bellflower Boulevard & Ramona Street 4 0
BLF 26 Bellflower Boulevard & Rose Street 6 0
BLF 27 Bellflower Boulevard & Rosecrans Avenue 4 0
BLF 28 Cedar Street & Clark Avenue 2 0
BLF 29 Civic Center Drive & Flower Street 2 0
BLF 30 Clark Avenue & Somerset Boulevard 4 0
ATTACHMENT 3

CITY OF BELLFLOWER

EXHIBIT A

LOCATION FOR MAINTENANCE OF TRAFFIC CONTROL DEVICES
2 of 3
ID No. LOCATION

HIGHWAY

SAFETY LIGHTS

ILLUMINATED

STREET NAME
SIGNS
BLF 31 Clark Avenue & Flower Street 4 0
BLF 33 Clark Avenue & Oak Street 1 0
BLF 34 Clark Avenue & Park Street 2 0
BLF 35 Clark Avenue & Rosecrans Avenue 4 0
BLF 36 Somerset Boulevard & Ryon Avenue 2 0
BLF 37 Somerset Boulevard & Woodruff Avenue 4 0
BLF 38 Flora Vista Street & Woodruff Avenue 3 0
BLF 40 McNab Avenue & Rosecrans Avenue 2 0
BLF 41 Palo Verde Avenue & 183rd Street/AIIington 4 3
BLF 42 Rosecrans Avenue & Woodruff Avenue 4 0
BLF 43 Prichard Street & Clark Avenue 4 0
BLF 44 ¹ Somerset Boulevard (EB) w/o Cabell Avenue 0 0
BLF 45 ¹ Somerset Boulevard (WB) e/o Eucalyptus Avenue 0 0 BLF 46 ¹ Somerset Boulevard & McNab Avenue (NE & SW cor) (2 flashers)
0 0
BLF 47 Alondra Boulevard & Pacific Avenue 2 0
BLF 48 Clark Avenue at Bike Trail 2 0
BLF 49 Flora Vista Street at Flower Street 3 0
BLF 50 2 Palm Street at Virginia Avenue - IP Crosswalk Lights and Flashing Ped Xing Signs
0 0
BLF 51 3 Palm Street e/o Virginia Avenue 0 0
EB & WB Radar Feedback Signs
BLF 52 Artesia Boulevard & California Avenue 2 0
BLF 53 Bellflower Boulevard & Walnut Street 4 0
BLF 55 4 Bellflower Boulevard & Laurel Street 0 0
Flashing Ped Xing Signs
BLF 56 Lakewood Boulevard at Paramount Place 3 2
BLF 57 Lakewood Boulevard at Somerset Boulevard 6 0
BLF 58 Lakewood Boulevard at Paseo Street 1 0
BLF 59 Lakewood Boulevard at Alondra Boulevard 4 0
BLF 60 Lakewood Boulevard at Flower Street 6 0

CITY OF BELLFLOWER

EXHIBIT A

LOCATION FOR MAINTENANCE OF TRAFFIC CONTROL DEVICES
3 of 3
ID No. LOCATION

HIGHWAY

SAFETY LIGHTS

ILLUMINATED

STREET NAME
SIGNS
BLF 61 Lakewood Boulevard at Artesia Boulevard 4 0
BLF 62 4 Somerset Boulevard at Eucalyptus Avenue (SE & NE cor) 0 0 Flashing Ped Xing Signs
BLF 63 4 Eucalyptus Avenue bet Somerset Boulevard & Linden Street 0 0 Flashing Ped Xing Signs
BLF 64 3 Eucalyptus Avenue bet Somerset Boulevard & Linden Street 0 0 NB & SB Radar Feedback Signs
BLF 65 Bellflower Boulevard at Mayne Street 4 0
BLF 66 Woodruff Avenue at Lindale Street 3 0
BLF 67 ² Cerritos Avenue at Somerset Boulevard 0 0
BLF 68 ⁴ Cerritos Avenue at Somerset Boulevard 0 0
BLF 69 Harvard St at Bellflower Blvd 3 0
BLF 70 3 15146 Woodruff Place 0 0
Radar Feedback Signs
BLF 71 3 15301 Woodurff Place 0 0
Radar Feedback Signs
updated 01/09/2023
¹ Indicates locations that are flashers.
² Indicates locations that are flashing pedestrian signs or in-pavement crosswalk lights billed as one flasher. 3 Indicates locations that are radar feedback signs billed as one flasher. 4 Indicates locations that are RRFB's billed as one flasher.

Note: nos. 21, 32, 39, & 54 not used.

ATTACHMENT 4

Page 1 of 10 ends

CITY OF BELLFLOWER
AGREEMENT FILE NO. 242.1 – EXHIBIT B

SCOPE OF WORK
The work to be done, in general, consists of furnishing all labor, materials, tools, equipment and incidentals (unless otherwise specified), to maintain Bellflower's fifty-four (54) signalized intersections, and thirteen (13) flashing beacons 100% Bellflower owned as shown on Exhibit "A", in a safe, satisfactory and workmanlike manner.

Contractor shall employ, at a minimum, generally accepted standards and practices utilized by persons engaged in similar services, as are required by Contractor, in meeting its obligations under this Agreement. All services required under this Agreement will be performed by Contractor, and all personnel shall possess the qualifications, permits and licenses required by the State and local law to perform such services.

A. Permits and Licenses
Contractor shall procure all permits and licenses, and give all notices necessary and incidental to the due and lawful prosecution of the Agreement.

B. Patents
Contractor shall assume all responsibilities arising from the use of patented materials, equipment, devices, or processes used on or incorporated in the work.

C. Equipment Required
Contractor shall be equipped with spare parts sufficient to return a defective signal to operation following ordinary trouble calls. In those cases where a complex controller or component has to be repaired, Contractor shall install a substitute controller or component of its own, while it is repairing the defective controller or component.

D. Records
Contractor shall maintain a record of all service calls and work performed upon the signal equipment, listing dates, arrival time to location, hour of day, description of service work performed, and the certified technician's name who completed the work. A copy of such record shall be maintained at all times within the controller cabinet of each signal location.

A log sheet giving a brief description of all routine and extraordinary maintenance activities shall be attached to each monthly invoice. Each invoice, including attachments, shall have a minimum of the following but not limited to:

City of Bellflower
Agreement File No. 242.1 – Exhibit B

Page 2 of 10 ends

1. Location of intersection

2. Technician Name

3. Detailed breakdown of work performed

4. Date of invoice and date of work performed

5. Technician arrival time

6. Requestor's name and call back number

7. Description of damaged work and work performed

8. Invoice number

9. Purchase Order Number
E. Shutdowns
Contractor shall request the assistance from Bellflower’s Public Works Department at (562) 804-1424, extension 2259 and notify Bellflower’s Director of Public Works or her/his authorized representative or designee at (562) 804-1424, extension 2285, of any signal turn-offs or turn-ons, if traffic is very heavy and Contractor feels it cannot safely bring up the signal.

F. Compliance
Contractor shall comply with all applicable codes, ordinances, laws, rules, regulations.

G. Labor Strike
It shall be the responsibility of Contractor to provide continuous maintenance services, without any interruption, of all traffic signals in Bellflower. In case of a labor strike, Contractor shall provide other means, at his own cost, to provide comparable continuous service as if there were no strike. Failing to do so will cause Bellflower to take whatever action is deemed necessary to provide such service, and the cost will be borne by Contractor.

H. Failure to Perform
If Contractor neglects to perform any of the work properly, or fails to perform any provision of this contract, then Bellflower, within three (3) days after written notice to Contractor, may, without prejudice to any other remedy it may have, make good on such deficiencies, and may deduct the cost thereof from the payment then or thereafter due Contractor; provided, however, that Bellflower’s Director of Public Works shall approve such action, and certify the amount thereof to be charged to Contractor.

I. Measurement and Payment
Payment shall be made on a monthly basis for all work satisfactorily completed the prior month. A single invoice that itemizes as follows is City of Bellflower
Agreement File No. 242.1 – Exhibit B

Page 3 of 10 ends

required:
• Routine Maintenance work; and
• Extraordinary Maintenance work
J. Routine Maintenance
The price for Routine Maintenance shall include the following services, and any other service not specified in this subsection shall fall under the category of "Extraordinary Maintenance."
(1) Coordination Timing
For non-interconnected pre-timed systems of pre-timed controllers, Contractor shall check coordination timing not less than once each month.
(2) Monthly Inspections
Contractor shall perform monthly inspections of each signalized intersection as follows:
(a) Walk the intersection and visually inspect all signal heads for proper operation, alignment, broken lenses, and missing or damaged parts.

During the walk around, depress all pedestrian push buttons, and observe for proper timing operation and display. As soon as possible, replace broken parts, or change parts and align signal heads, adjust all vehicle or pedestrian signals as necessary. Such repairs would be payable under Section K (Extraordinary Maintenance of this Agreement).
(b) Closely examine the functioning of the traffic controller in relation to the approaching traffic, and compare the timing chart to the intervals that are timed by the traffic controller.

Correct the time of intervals, if necessary, as per the timing card and notify Bellflower’s Director of Public Works or his/her designee for verification of work performed.
(c) Observe traffic as it approaches the intersection, in order to determine if the detector loops, detector loop cables, and amplifiers are operating properly. Adjust or re-tune detect amplifiers, if necessary.
(d) Inspect all load switches, photo-cells, dials, controller cabinet switches, relays, clocks, cabinet locks, cabinet mechanisms, cooling fans, etc., and make routine adjustments or minor City of Bellflower
Agreement File No. 242.1 – Exhibit B

Page 4 of 10 ends

repairs, if necessary.
(e) Clean the controller cabinet; vacuum if necessary; remove any foreign material. Look for water or excessive dampness inside the cabinet. Determine the cause, and remedy the condition. Check the filter, and replace it if necessary. (f) Maintain a clear and accurate record of the field inspection in the controller cabinet. This record will include the monthly inspection summary showing the date and time checked, and who checked it. If a controller needs to be replaced due to malfunctioning and needs repair, then Contractor shall notify Bellflower’s Public Works Department within 24 hours of controller replacement. Any replacement controller shall be adjusted to reflect the timing and settings according to the timing chart.
(g) Replace the air filter elements in all cabinets so equipped, every twelve (12) months during the term of this Agreement. (h) A nighttime survey (Night Tour) shall be conducted quarterly to inspect and identify any inoperable intersection lighting, street and parking lot lighting, soffit lighting, and illuminated street name signing. A report of all findings and actions from such survey shall be sent to Bellflower’s Director of Public Works for review.
(i) Notify Bellflower’s Public Works Department when the visibility of traffic signal indications or intersection lighting is impaired by trees, shrubbery, or other obstacles.

K. Extraordinary Maintenance
Extraordinary Maintenance shall consist of the following:
• Failure or malfunction of the signal system if caused by vehicle collision, vandalism, civil disorder, windstorm, natural disasters, street construction, replacement or excavation; or
• Minor upgrading or installation as directed by Bellflower. • Repair of broken lenses, missing or damaged parts, burned-out indications, etc. that are found during the monthly Routine Maintenance and Night Tour inspections.
(1) Repair
Contractor shall repair any and all defective parts of the signal system that cause the signal failure or malfunction, as the occasion arises, such as the signal controller, pedestrian timers, timing dial, City of Bellflower
Agreement File No. 242.1 – Exhibit B

Page 5 of 10 ends

master controllers, coordinating units, (State of California) synchronizer and interconnect, flashers, all kinds of burnouts, detector loops, push buttons, sensing units, communication hardware, and wiring systems, etc., unless the failure or malfunction falls in the category of "Routine Maintenance" as defined in this Agreement.
(2) Loop Detector Replacement
Once it is determined by Bellflower a saw cut has so deteriorated that applying more epoxy is insufficient, the loop detector shall be replaced upon receiving approval from Bellflower’s Director of Public Works. Contractor shall provide a schedule for installation of any loop detectors with an estimated completion date.
(3) Lamp Replacement
Contractor shall replace all lamps and Light Emitting Diodes (LED’s) in all signals on an 80% depletion curve, in accordance with the time schedule contained in the specifications. All traffic signal lamps must conform to the standards of the N.E.M.A., U.L., E.I.A., A.S.T.M., A.N.S.I., and any local ordinance that may apply.

If incandescent lamps are present and are in need of replacement based upon the above criteria, Contractor shall replace the lamp to an approved manufacturer LED.

Contractor agrees and acknowledges Bellflower's traffic signals contain LED's, which include red, amber and green balls and arrows. (4) LED Replacement
Contractor agrees to use only standard traffic signal LED's equivalent in performance, reliability and durability to those manufactured to California Department Transportation’s (Caltrans) standards. Contractor agrees to supply all labor and equipment to perform the re-lamping function, with the cost of the LED’s and associated installation labor to be invoiced to Bellflower. Contractor shall clean, polish and inspect all lenses and reflectors at the time the traffic signals are re-Iamped. At this time, all broken or deteriorated parts will be replaced or changed, as necessary, signal heads aligned, mast arm mounted, street name signs adjusted, and optically programmed signal heads adjusted.
(5) Pedestrian Signals and Street Name Signs
Contractor shall replace pedestrian signal modules and internally City of Bellflower
Agreement File No. 242.1 – Exhibit B

Page 6 of 10 ends

illuminated street name sign lamps, as they become dim or inoperative. Contractor shall also replace ballasts and transformers for these units as required.
(6) Lighting at Intersections
Intersection lighting at signalized intersections are to be replaced as they become inoperative, or when directed by Bellflower. High pressure sodium lamps are to be used for replacement.
(7) Emergency Service
Contractor shall maintain a 24-hour per day emergency service for the replacement of burned-out lamps or LED's, turned heads and controller malfunctions, or any damage creating a public hazard. The intersections where said traffic signals are located shall be regularly monitored by Contractor or his representatives. Contractor shall repair parts, replace parts and lamps or LED's, and otherwise keep the traffic signals in good working condition. Contractor shall maintain a local telephone number where representatives of Contractor can be reached 24 hours per day. This telephone number is to be made available to all persons designated by Bellflower.

Contractor shall make immediate service calls on an emergency basis, responding within one (1.5) hours in the event of malfunctions of the controller or signal system, or turned head.
(8) Notification
Contractor shall contact Bellflower’s Director of Public Works regarding any Extraordinary Maintenance work (except that necessary to maintain operation) that exceeds $1000 in cost and seek approval from Bellflower’s Director of Public Works before the work is scheduled or commenced.
(9) Emergencies
When directed by Bellflower, Contractor shall respond immediately to emergency calls such as a total blackout, and dispatch the qualified personnel and equipment to reach the site within one (1.5) hours of Bellflower's direction under normal circumstances.

For an emergency repair of a signal that requires the turning off of power to the signal, the following procedure of traffic control shall apply.
(a) Contractor shall dispatch qualified personnel and
City of Bellflower
Agreement File No. 242.1 – Exhibit B

Page 7 of 10 ends

equipment to reach the site within one (1.5) hours of
Bellflower's direction. Contractor's vehicle shall carry stop signs, traffic cones and other equipment that shall be used when directing traffic during an emergency
and/or when deemed necessary by the signal
technician, Bellflower’s Director of Public Works, or
her/his designated representative.
(10) Materials
Materials used in Extraordinary Maintenance shall be paid at Contractor's actual cost from the supplier, plus a 15% markup. All materials and parts shall be new or have the approval of Bellflower’s Director of Public Works, if otherwise not new. Bellflower has the right to inspect Contractor's records to verify any material costs used for work relating to Extraordinary Maintenance.
(11) Direct Labor
As part of its monthly invoice, Contractor shall present a record of hours spent on Extraordinary Maintenance of traffic signals and appurtenances per intersection. Bellflower shall pay Contractor's direct cost for such hours of Extraordinary Maintenance as stated below:

Regular time rates will be charged to Bellflower for labor between 6:00 am to 5:00 pm, Monday through Friday. Overtime rates will be charged to Bellflower for labor between 5:00 pm and 8:00 am on weekdays, and 24 hours on Saturdays, Sundays and holidays.

Under this Agreement, holidays mean New Year’s Day, Martin Luther King Jr.'s Birthday, Lincoln's Birthday, President’s Day, Cesar Chavez's Birthday, Memorial Day, Independence Day, Labor Day, Veteran's Day, Thanksgiving Day, Day after Thanksgiving Day, the day before Christmas from 12 noon to 5:00 pm, if Christmas falls on a day other than Saturday, Sunday or Monday, Christmas Day, the day after Christmas, in those years in which Christmas falls on a Thursday and every day appointed by the President or Governor for a public fast, thanksgiving, or holiday.
(12) Equipment
Bellflower shall pay Contractor's direct cost for equipment used in Extraordinary Maintenance. All salvaged or damaged materials that cannot be repaired or reused shall be delivered by Contractor to a location designated by Bellflower’s Engineer. All damaged materials that can be repaired for re-use in Contractor's signal shop, shall be removed to the shop for such repairs, and shall be reinstalled when City of Bellflower
Agreement File No. 242.1 – Exhibit B

Page 8 of 10 ends

repaired.
(13) Painting
Contractor shall provide a cost to Bellflower to repaint all, signal heads, back plates and visors, unless directed otherwise by Bellflower, at least once during the term of this Agreement.

Repainting shall be conducted by a method mutually agreed to by both parties.
(14) Maintenance and Inspections
Contractor shall provide intersection lighting and/or street lighting maintenance and inspections for the following specific areas in Bellflower: freeway underpasses, Alondra Bridge, Bellflower-owned parking lots, as show in Exhibit C, Bellflower-owned street lights on Bellflower Boulevard, as shown on Exhibit D, and in the Executive Tract, as shown on Exhibit E.
(15) Conflict Monitor Testing
Contractor shall provide conflict monitor testing. If Contractor determines a conflict monitor unit is defective or malfunctioning, then Contractor shall conduct repairs in accordance with Sections K.(1) and K.(8) above.

L. Protection and Traffic Control
(1) Protection
Contractor shall be responsible for, and shall provide and maintain all required barricades, railings, lights and warning signs, and shall take all necessary precautions to avoid injury or damage to any person or property, and shall, at its own cost and expense, defend, protect and indemnify Bellflower against any claim or liability arising from, or based on the lack of proper safeguards or negligence, whether by himself or his agents, employees or subcontractors.

Contractor shall protect all work, materials and equipment from damage from any cause whatsoever, and provide adequate and proper storage facilities during the progress of the work. It shall provide for the safety and good condition of all work, and replace all damaged or defective work, materials and equipment.

Contractor shall exercise diligence to avoid damage to sprinkler piping, valves, trees, planting, turf, etc., in addition to buildings, structures, pavement, fences and footings. Any required tree branch trimming or removal shall be brought to the attention of Bellflower City of Bellflower
Agreement File No. 242.1 – Exhibit B

Page 9 of 10 ends

promptly, and shall be performed by Bellflower personnel.

M. Traffic Control
Traffic control shall conform to the California Manual on Uniform Traffic Control Devices (California MUTCD), latest edition, and any deviations from the MUTCD must be approved by Bellflower’s Director of Public Works or his/her designee.

Contractor shall conduct his operation as to cause the least possible obstruction and inconvenience to vehicular and pedestrian traffic.

Contractor shall furnish, erect and maintain such fences, barriers, lights, warning devices and signs in compliance with the California MUTCD, latest edition, or as may be deemed necessary by Bellflower’s Director of Public Works, to give adequate warning to the public at all times the road or street is obstructed, and of any abnormal conditions to be encountered as a result thereof.
(1) Payment for Traffic Control
Payment for barricading, protection and vehicular and pedestrian traffic control shall be included in the cost estimate for extraordinary maintenance to adequately perform the work involved to the satisfaction of Bellflower’s Director of Public Works.

N. Guarantee
Contractor hereby guarantees the entire work performed by it under this Agreement will meet fully all requirements thereof as to quality of workmanship and materials furnished by it.

Contractor hereby agrees to make, as its own expense, any repairs or replacements made necessary by defects in materials or workmanship supplied by it that become known within one (1) year of the repair or replacement and upon notice to Contractor regarding said defects.

O. Record Requests
At the request of Bellflower’s Director of Public Works or her/his designee, Contractor shall provide timing chart information, cost account information or any other documentation related to services provided by Contractor. All third party requests for records shall be routed through the City of Bellflower’s Director of Public Works and all requested records will be routed to the Director of Public Works for release to the third party.

City of Bellflower
Agreement File No. 242.1 – Exhibit B

Page 10 of 10 ends

Contractor shall be entitled to compensation for such requests on a time and materials basis in accordance with Section 4.(e) of the Agreement.

Doc 268901
Report Submitted By: Wayne M. Morrell Date of Report: March 16, 2023 Department of Planning
City of Santa Fe Springs
City Council Meeting March 21, 2023

NEW BUSINESS
Resolution No. 9856, Approving, Authorizing and Directing the Execution of the Joint Exercise of Powers Agreement Relating to Membership in the Gateway Cities Affordable Housing Trust
The Gateway Cities region of Los Angeles County includes 27 cities located along the I-710 corridor in eastern Los Angeles County. Early in 2021 the Gateway Cities Council of Governments (GCCOG) obtained State funding from the Southern California Association of Governments (SCAG) to explore the formation of an affordable housing trust within the region.

Since then, GCCOG and their consultant conducted the following activities:
• Interview the GCCOG cities to determine their housing needs and priorities, explain the concept of the Trust, and investigate their interest in being a member. • Interview other stakeholders in the region in the same fashion, including the County of Los Angeles, affordable housing developers, financing entities, advocates, research organizations, and other related entities to gain their perspectives. • Provide an overview of best practices from other local housing trust fund studies, as well as a comparative review of the range of organizational and governance structures.
• Conduct a study of the overall housing needs in the region, determine the existing sources of support to meet these needs, and estimate how much additional funding support will be needed for cities to meet these needs and satisfy their Regional Housing Needs Assessment obligations.
• Identify affordable and homeless housing developments planned within the Gateway Cities, including those in construction and those in the entitlement and pre-development phases. Compare the number of units to be provided and the populations to be served by these units to the housing need report. • Form a Steering Committee of Gateway COG City Managers and others to work with the Gateway Cities COG and the consultants to make the initial recommendations for how a Trust might be formed and explore the initial sources of funding to support this effort.

RECOMMENDATION(S):
• Adopt Resolution No. 9856 –approving the City execution of the Joint Exercise of Powers Agreement relating to membership in the Gateway Cities Affordable Housing Trust; and
• Authorize the Mayor or designee to execute the Gateway Cities Affordable Housing Trust Joint Powers Authority (JPA) Agreement upon final approval of the language of the JPA by the City Attorney.

ITEM NO. 11
Resolution No. 9866: Gateway Cities Affordable Housing Trust Page 2 of 4 Report Submitted By: Wayne M. Morrell Date of Report: March 16, 2023 Department of Planning
• Based on dialogue with the Trust Steering Committee, create and support the negotiation of a Joint Powers Agreement for the Trust, develop an Administrative Plan, Governance Structure, and Bylaws for the Trust.
• Prepare a draft strategic plan for the new Trust, for review and acceptance by the Gateway Cities COG Board and final adoption by the new Board of Directors of the Trust when that Board is in place.
• Develop an operational plan for the first full year of operations of the Trust, proposed as fiscal year July 1st, 2023, to June 30th, 2024.
• Create a draft capital and administrative budget for the first year of Trust operations.

In late summer 2022, a Trust Steering Committee was formed including representatives from member cities, Los Angeles County, developers, and financing entities. The Trust Steering Committee met on three occasions and accomplished a variety of detailed analysis including, a review of other housing trusts best practices, examined potential funding sources for capital and administrative funding, discussed potential housing programs/projects, identify the key components to the Trust Strategic Plan, and helped draft the Joint Powers Agreement.

The Steering Committee unanimously recommended the formation of an affordable housing trust for the Gateway Cities sub-region. In addition, presentations were made to the GCCOG Committee on Homelessness, Gateway Cities City Managers and Planning Directors Committee. All groups expressed unanimous support for the formation of a Trust.

TRUST MEMBERSHIP
As outlined in the JPA, the Trust does not build, own, or manage housing projects.

Trust cannot require that housing projects be located in specific cities, require member cities to take an allocation of supportive housing units, or require that cities provide a local funding match. The Trust Board of Directors determines whether a funding application meets the Notice of Funding Availability criteria. Each local jurisdiction maintains land use control and processes the entitlement consistent with its zoning and municipal code requirements.

The JPA contains a provision that requires members to contribute towards administrative expenses of Trust. Member cities are not required to contribute funding until July 1, 2024. Prior to this period the Gateway Cities Council of Governments has secured administrative formation funding for the Trust. The annual membership fees are based upon city population:
• Up to 30,000 = $7,500
• 30,001 to 60,000 = $15,000
• 60,001 to 100,000 = $32,500
• Greater than 100,000 = $47,500
Resolution No. 9866: Gateway Cities Affordable Housing Trust Page 3 of 4 Report Submitted By: Wayne M. Morrell Date of Report: March 16, 2023 Department of Planning
This amount will increase annually in an amount equal to the U.S. Bureau of Labor Statistics consumer price index for Los Angeles-Long Beach-Anaheim area for the 12- month period preceding the year the fees are assessed.

The City would maintain the right to withdraw from the JPA subject to an approved resolution and by providing a six-month notice.

GOVERNANCE
The Trust will be a public government entity established by joint powers authority and in accordance with the Joint Exercise of Powers Act, as codified in California Government Code section 6500 et seq. The Trust will be organized to receive public and private capital and administrative funds to address local housing needs. The Trust will have an ongoing administrative revenue source from city membership fees as specified in the Trust Joint Powers Agreement (JPA) (see Attachment 2) to be signed by each city that is a member of the Trust.

The Trust is governed by a nine-member Board of Directors (Board). Pursuant to the JPA By-Laws (Attachment 3), the Board is comprised of seven elected officials whose governing body is a member of Trust and appointed by the Gateway Cities Council of Governments Board. A Trust member city will be represented on the Board by each population category specified in the Trust Membership fee calculation. Two additional Board members are experts in homelessness or housing policy and approved by the Gateway Cities Council of Governments City Managers Committee.

PAST AND PIPELINE OF AFFORDABLE HOUSING PROJECTS
The Trust will help cities in the Trust subregion address their Regional Housing Needs Assessment (RHNA) which is mandated by State Housing Law as part of the periodic process of updating local housing elements of the General Plan for each city. RHNA quantifies the need for housing within each jurisdiction during specified planning periods.

In the past eight-year planning period, from 2013 through 2021, the GCCOG subregion received tax credit funding for 58 projects totaling nearly 6,000 housing units. A 2022 survey of GCCOG cities revealed that there are 38 affordable housing projects currently in the pipeline that have not yet started construction. Most of these projects need critical gap subsidy funding to start construction. These 38 pipeline projects would benefit from additional funding provided by the Trust which could accelerate and facilitate the creation of an additional 4,000 affordable housing units in the COG subregion.

Resolution No. 9866: Gateway Cities Affordable Housing Trust Page 4 of 4 Report Submitted By: Wayne M. Morrell Date of Report: March 16, 2023 Department of Planning

SUMMARY
Staff recommends that the City of Santa Fe Springs join the Gateway Cities Affordable Housing Trust (Trust), a Joint Powers Authority (JPA) formed among the cities within the Gateway Cities region. The Trust provides funding to preserve and produce affordable housing. These funds improve the financial viability of individual housing projects and programs. This funding can also increase each project’s competitiveness for additional state and federal funding sources. Additionally, the Trust works with a variety of government and philanthropy groups to attract more housing funds to the Gateway Cities region. Joining the Trust would support the City to achieve the stated goals and objectives of the 6th Cycle Housing Element and support the region as a whole to bring new dollars to help fund more affordable housing development. To become a member, the City Council would adopt Resolution 9856 and authorize the Mayor or designee to execute the JPA with Trust.

FISCAL IMPACT
The fiscal impact is the annual membership fee of $7,500, which will commence on July 1, 2024. This amount will increase annually in an amount equal to the U.S. Bureau of Labor Statistics consumer price index for Los Angeles-Long Beach-Anaheim area for the 12-month period preceding the year the fees are assessed.

Tom Hatch
Interim City Manager
Attachment(s):

1. Resolution No. 9856

2. Trust Joint Powers Agreement

3. Trust Joint Powers Authority By-Laws
APPROVED:

ITEM NO.:

RESOLUTION NO. 9856

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF THE CITY OF SANTA FE

SPRINGS, CALIFORNIA, APPROVING, AUTHORIZING AND DIRECTING CITY

EXECUTION OF THE JOINT EXERCISE OF POWERS AGREEMENT RELATING TO

MEMBERSHIP IN THE GATEWAY CITIES AFFORDABLE HOUSING TRUST WHEREAS, The Gateway Cities Affordable Housing Trust (GCAHT) was formed in 2023 as a joint powers authority between cities throughout the Gateway Cities subregion; and
WHEREAS, GCAHT was created for the purpose of funding housing specifically assisting persons and families of extremely low, very low, low and moderate income within the County of Los Angeles; and
WHEREAS, the City of Santa Fe Springs (the “City”) has determined through its 6th Cycle Housing Element Update that there is great need for more affordable housing in the City; and
WHEREAS, the City of Santa Fe Springs (the “City”) has determined that there are limited financial resources for affordable housing development and that additional local financing increases the competitiveness of individual projects for the State and Federal resources; and
WHEREAS, the City of Santa Fe Springs (the “City”) has determined that it is in the public interest and for the public benefit that the City become a member of the GCAHT in order to further facilitate the development of affordable housing in the City and throughout the region, including the financing of projects therefore by the GCAHT; and WHEREAS, the City (the “City Council”) will be joining other cities that are members of the GCAHT in efforts to increase State and Federal resources for affordable housing directed to GCAFT; and
WHEREAS, the Agreement has been filed with the City, and the members of the City Council of the City (the “City Council”), with the assistance of its staff, have reviewed said document; and
WHEREAS, the GCAHT is authorized to issue grants and loans to developers for the purpose, among others, of financing or refinancing the construction, acquisition and rehabilitation of affordable housing; and
WHEREAS, the City anticipates that there will be affordable housing projects in need of financing located in the City of Santa Fe Springs; and NOW, THEREFORE the City Council of the City of Santa Fe Springs DOES HEREBY RESOLVE as follows:

ATTACHMENT 1
SECTION 1. The foregoing recitals are true and correct.

SECTION 2. The City Council hereby authorizes the City’s membership in the Gateway Cities Affordable Housing Trust (GCAHT).

SECTION 3. The City Council has reviewed and approves the Joint Exercise of Powers Agreement substantially in the form attached (Exhibit 1) and the Mayor or designee is authorized to execute this Agreement upon final approval of the language of the Joint Exercise of Powers Agreement by the City Attorney.

SECTION 4. The adoption of this Resolution shall not obligate the City or any department thereof to (i) provide any financing to acquire, construct or operate any Project or any refinancing of any Project; (ii) approve any application or request for or take any other action in connection with any planning approval, permit or other action necessary for the acquisition, improvement, rehabilitation or operation of any Project; (iii) require any contribution or advance any funds whatsoever to the GCAHT other than membership fees for administrative costs; or (iv) except as provided in this Resolution, take any further action with respect to the GCAHT or its membership therein.

SECTION 5. The Mayor, the City Clerk and all other proper officers and officials of the City are hereby authorized and directed to execute the Joint Exercise of Powers Agreement and to perform such other acts and deeds, as may be necessary or convenient to affect the purposes of this Resolution and the transactions herein authorized.

SECTION 6. The City Clerk shall forward a certified copy of this Resolution and an originally executed Agreement to the GCAHT:

Gateway Cities Affordable Housing Trust
Attn: Melanie Smith, AICP
Gateway Cities Council of Governments
16401 Paramount Boulevard
Paramount, CA 90723
SECTION 7. This resolution shall take effect immediately upon its passage.

APPROVED AND ADOPTED by the City Council of the City of City of Santa Fe Springs, at a regular meeting held this 21st day of March, 2023 by the following roll call vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
_____________________________
Juanita Martin, Mayor
ATTEST:
_________________________
Janet Martinez, CMC, City Clerk
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JOINT EXERCISE OF POWERS AGREEMENT
THIS JOINT EXERCISE OF POWERS AGREEMENT (this “Agreement”) is made this 14th day of February 2023 (the “Effective Date”), by and between the following public entities (each a “Party” and, collectively, the “Parties”): City of Artesia, City of Paramount, and City of Lakewood.

RECITALS
A. The Parties have a strong interest in promoting the health, safety, and welfare of the residents within their geographic boundaries.

B. Each Party has the individual power to implement affordable housing projects and programs generated within its jurisdictional boundaries, as well as, to create and issue development agreements for such activities.

C. The Parties find it in their mutual interest to address affordable housing issues on a regional level.

D. An adequate supply of housing throughout the Gateway Cities subregion will provide social and economic benefits to residents and taxpayers of the Parties.

E. The Parties desire to act in the public interest to lessen the burden of government by reducing the need for each Party to act individually, and to provide charitable support for affordable housing in the Gateway Cities subregion of Los Angeles County (the “County”).

F. California Government Code section 6500 et seq. (“Joint Exercise of Powers Act” or “Act”) permits two or more public agencies to create joint powers authorities for the purposes cited herein and permits the agencies to exercise jointly any power that the public agencies could exercise separately, and further grants certain additional powers to such joint powers authorities.

G. Local land-use decisions remain solely with each Party. Nothing in this Agreement deprives any Party of its sovereign powers with respect to land-use or transfers such powers to the joint powers authority.

NOW, THEREFORE, in consideration of the mutual promises set forth below, the Parties agree as follows:

Section 1. Creation and Purpose.
(a) Creation of GCAHT. Pursuant to the Joint Exercise of Powers Act, there is hereby created a public entity to be known as the “Gateway Cities Affordable Housing Trust” (“GCAHT”).

GCAHT shall be a public entity separate and apart from the Parties and shall administer this Agreement.
(b) Purpose. This Agreement is made pursuant to the Joint Exercise of Powers Act for the purpose of creating the GCAHT as a public entity separate from the Parties ATTACHMENT 2
2 | Page
to: (i) exercise common powers with respect to receiving public and private financing and funds; and (ii) fund the planning and construction of housing of all types and tenures for persons and families of extremely low-, very low-, low- and moderate-income, as defined in Section 50093 of the Health and Safety Code, including, but not limited to, permanent supportive housing. The purpose of this Agreement shall be accomplished, and common powers exercised in the manner set forth in this Agreement. Nothing contained in this Agreement shall preclude the Parties form establishing, maintaining, or providing social programs or services to its residents as each deems proper and necessary.

Section 2. Term and Termination
(a) Term. This Agreement shall become effective, and GCAHT shall come into existence, on the Effective Date, and this Agreement shall thereafter continue in full force and effect until terminated pursuant to subdivision (b) of this section. (b) Termination. This Agreement may be terminated by agreement of the Parties.

Upon termination of this Agreement, GCAHT shall be dissolved and, after payment of or provision for payment of all liabilities, the assets of GCAHT shall be distributed to the Parties in proportion to the contribution of each Party to GCAHT and the amounts paid by each Party in connection with GCAHT’s activities.

Section 3. Powers and Duties of GCAHT.
(a) General Powers. GCAHT shall have all the powers common to the Parties to this Agreement necessary or convenient, specified, or implied, to accomplish the purpose of this Agreement as set forth in Section 1, subject to the restrictions set forth in Section 3, subdivision (c) below. Said powers shall be exercised in the manner provided in the Joint Exercise of Powers Act and, except as expressly set forth herein, subject only to such restrictions upon the manner of exercising such powers as are imposed upon the Parties in the exercise of similar powers. (b) Specific Powers. Without limiting the generality of the powers conferred in subdivision (a) of this Section 3, GCAHT is hereby authorized, in its own name, to do all of the acts necessary or convenient to the accomplishment of the purposes of this Agreement and the full exercise of the powers conferred in subdivision (a) of this Section 3, including but not limited to the following:

1. to make and enter into contracts;

2. to contract for staff assistance;

3. to sue and be sued in its own name;

4. to apply for, accept, receive and disburse grants, loans and other aids from any agency of the United States of America, the State of California, Los Angeles County, Party to this Agreement, or any other agency providing funding related to the purposes of this Agreement;
3 | Page

5. to invest any money in the treasury pursuant to Section 6505.5 of the Joint Exercise of Powers Act that is not required for the immediate necessities of GCAHT, as GCAHT determines is advisable, in the same manner and upon the same conditions as local agencies, pursuant to Section 53601 of the California Government Code;

6. to apply for letters of credit or other forms of financial guarantees in order to enter into agreements in connection therewith;

7. to carry out all the provisions of this Agreement;

8. to purchase obligations of any Party;

9. to engage the services of private consultants to render professional and technical assistance and advice in carrying out the purposes of this Agreement;

10.to employ and compensate legal counsel determined appropriate by GCAHT in accomplishment of the purposes of this Agreement;

11.to contract for engineering, construction, architectural, accounting, environmental, land use, or other services determined necessary or convenient by GCAHT in connection with the accomplishment of the purposes of this Agreement;

12.for the purposes of enforcing affordable housing covenants or holding security interests for loans, to take title to, and transfer, sell by installment sale or otherwise, lands, structures, real or personal property, rights, rights-of-way, franchises, easements, and other interests in real or personal property which GCAHT determines are necessary or convenient in connection with the accomplishment of the purposes of this Agreement;

13.for the purposes of renting space for GCAHT to operate, to lease to, and to lease from, a Party or any other person or entity, lands, structures, real or personal property, rights, rights-of-way, franchises, easements, and other interests in real or personal property which GCAHT determines are necessary or convenient in connection with the accomplishment of the purposes of this Agreement;

14.to solicit charitable contributions from private sources;

15.to propose amendments to this Agreement; and

16.to exercise any and all other powers as may be provided for GCAHT in the Joint Exercise of Powers Act or any other applicable law. (c) Limitation on Powers. This Agreement does not authorize GCAHT do any of the following:

1. Regulate land use in cities or in the unincorporated area of the County;

2. Serve as an owner or operator of housing units;
4 | Page

3. Levy, or advocate or incentivize the levying of, an exaction, including an impact fee, charge, dedication, reservation or tax assessment, as a condition of approval of a development project;

4. Require or incentivize inclusionary zoning requirements;

5. Require the Parties to dedicate or assign funding for any GCAHT obligations or programs;

6. Approve a housing project or program that is not supported by the governing body of the jurisdiction (a city or the county) in which the proposed project is sited; or

7. Require the Parties to accept or provide any member of housing units as a prerequisite to joining or remaining a member of GCAHT.

Section 4. Members
The members of GCAHT shall be the Parties who have not withdrawn from GCAHT, and such other Parties as may join GCAHT after execution of this Agreement. New members may join on the terms and conditions set forth in Section 10 hereof. Only cities within the County of Los Angeles and within the Gateway Cities subregion may be a party to this Agreement and a member of GCAHT.

Section 5. Board of Directors
(a) Selection of Directors. GCAHT shall be governed by a Board of Directors consisting of nine Directors selected as follows:

1. Seven Directors who are members of the Gateway Cities Council of Governments (GCCOG) Governing Board (“GCCOG Board”), or any elected official serving within the GCCOG jurisdiction that is also a Party and appointed by the GCCOG Board.

2. Two Directors that are experts in homelessness or housing policy appointed by the Gateway Cities Council of Governments City Managers Committee.

3. Alternates for each Director position may be established by the appointing entity.
(b) Board Powers. Subject to the limitations of this Agreement and the laws of the State of California, the powers of GCAHT shall be vested in and exercised by, and its property and its affairs administered by, the Board of Directors. (c) Advisory Board. The Board of Directors may appoint advisory boards that may include such persons as designated by the Board of Directors. The Board of Directors shall adopt bylaws that govern the appointment of advisory boards should it determine in its discretion to appoint such advisory boards. (d) Compensation. Members of the Board shall serve without compensation but shall be entitled to reimbursement for any expenses actually incurred in connection with 5 | Page
serving as Director; provided such expenses have been previously approved by the Board of Directors and incurred in accordance with any GCAHT policies or procedures governing the same.
(e) Term. Members of the Board shall serve for a two-year term. There are no term limits. The initial Board will serve a term staggered between one-year and twoyear terms. Three of the seven Directors who are members of the GCCOG Board or are appointed by the GCCOG Board in accordance with Section 5(a) shall have an initial term of one year. One of the two Directors that are experts in homelessness or housing policy shall have an initial term of one year. The initial one-year terms will be determined through the drawing of lots. (f) Meetings of the Board of Directors.

1. Call, Notice and Conduct of Meetings. All meetings of the Board of Directors, including without limitation, regular, adjourned regular, special meetings and adjourned special meetings, shall be called, noticed, held and conducted in accordance with the provisions of the Ralph M. Brown Act, Government Code sections 54950 et seq.

2. Regular Meetings. Regular meetings of the Board of Directors shall be held at such dates and times as the Board may fix by resolution from time to time. If any day so fixed for a regular meeting shall fall upon a legal holiday, then such regular meeting shall be held on the next succeeding business day at the same hour. No notice of any regular meeting of the Board of Directors need be given to the individual Directors.

3. Special Meetings. Special meetings of the Board of Directors shall be held whenever called by the Chairperson of the Board or by a majority of the Directors. Notices of all special meetings shall be provided to all Parties.

4. Quorum. A majority of the seated members of the Board of Directors shall constitute a quorum at any meeting of the Board except that less than a quorum may adjourn a meeting to another time and place. Every act or decision done or made by a majority of the Directors present at any meeting at which a quorum is present shall be the act of the Board of Directors.

5. Minutes. The Board of Directors shall keep minutes of all regular, adjourned regular, and special meetings, and shall, as soon as possible after each meeting, cause a copy of the minutes to be forwarded to each Director and to the Parties.

6. Officers. The Board of Directors shall elect a chairperson and a vice chairperson from among its Directors at the first meeting held in each fiscal year. In the event that the chairperson or vice chairperson so elected ceases to be a Director, the resulting vacancy shall be filled at the next regular meeting of the Board of Directors held after such vacancy occurs or at a special meeting called for that purpose. In the absence or inability of the chairperson to act, the 6 | Page
vice chairperson shall act as chairperson. The chairperson, or the chairperson’s absence, the vice chairperson, shall preside at and conduct all Board of Director’s meetings.

7. Rules and Regulations. The Board of Directors may adopt, from time to time, by resolution, such rules, regulations, and bylaws for the conduct of its meetings and affairs as the Board determines is necessary or convenient.

Section 6. Additional Officers and Employees
(a) Officers and Contract Staff

1. GCAHT may contract with a Party or the GCCOG, for officers and staff pursuant to Section 6(d), or retain independent contractors, agents, or volunteers as the Board of Directors may deem necessary to carry out any of GCAHT’s powers, upon such terms and conditions as the Board may require, including the retaining of professional and technical assistance, provided that adequate funds are available in GCAHT’s budget and are appropriated by GCAHT therefor.

2. None of the officers, agents, or staff, if any, directly contracted by GCAHT shall be deemed, by reason of their roles or duties or contracted status, to be employed by the Parties.
(b) Treasurer and Auditor/Controller. Pursuant to Government Code Sections 6505.5 and 6505.8, the Board of Directors shall appoint an officer or employee of GCAHT, or an officer or employee of a public agency that is a Party, or a certified public accountant to hold the offices of treasurer and auditor for GCAHT. Such person or persons shall possess the powers of and shall perform the treasurer and auditor functions for GCAHT required by Sections 6505, 6505.5 and 6505.6 of the Government Code, including any subsequent amendments thereto. Pursuant to Government Code Section 6505.1, the auditor and treasurer shall have charge of certain property of GCAHT. The treasurer and auditor shall assure that there shall be strict accountability of all funds and reporting all receipts and disbursements of GCAHT. The treasurer and auditor of GCAHT shall be required to file an official bond with the Board of Directors in an amount, which shall be established by the Board. Should the existing bond or bonds of any such officer be extended to cover the obligations provided herein, said bond shall be the official bond required herein. The premiums on any such bonds attributable to the coverage required herein shall be an appropriate expense of GCAHT.
(c) Attorney. The Board of Directors shall have the power to appoint one or more legal advisors to GCAHT who shall perform such duties as may be prescribed by the Board. 7 | Page
(d) Administrative Services and Reimbursement of Costs.

1. The Board of Directors may contract with a Party to provide necessary administrative services to GCAHT, including the services described in Section 6(a), (b) and (c). The amount charged by the Party to provide such services to GCAHT shall be fixed by agreement between the Board of Directors and the governing board of the Party providing such services. In the absence of an agreement on costs, the Party providing services to GCAHT under this Section 6 may charge GCAHT the amounts necessary to recover the direct and indirect costs of such services.

2. If GCAHT contracts with a Party to provide GCAHT with administrative services through persons who are employees and officers of the Party, then any retirement liabilities associated with that Party’s employees and officers shall not constitute a liability of GCAHT or any other Party. This Section 6(d)(2) shall not preclude a Party providing administrative services to GCAHT pursuant to a contract with GCAHT from accounting for such salary and benefit costs when negotiating the rates that the Party will charge GCAHT for providing such services.

Section 7. Financial Provisions
(a) Fiscal Year. The Fiscal Year of GCAHT shall, unless and until changed by the Board of Directors, commence on the 1st day of July of each year and shall end on the 30th day of June of the next succeeding year except that the initial Fiscal Year of GCAHT shall commence on the Effective Date and end on the immediately following 30th day of June.
(b) Budget.

1. General Budget. Within one hundred and twenty days (120) after the first meeting of the Board of Directors, a general budget for the first fiscal year shall be adopted by the vote of a majority of all the Directors. The budget shall distinguish between administrative costs (i.e., the cost of operating GCAHT) and Program costs (i.e., the financing of the programs funded or sponsored by GCAHT). Thereafter, at or prior to the last meeting of the Board of Directors for each fiscal year, a general budget shall be adopted for the ensuing fiscal year or years by a vote of at least a majority of all Directors of the Board.

2. Expenditures for the Approved Budget. The payment of all GCAHT obligations is limited to the amount of appropriations allowed in GCAHT’s approved budget, except as it may be revised with the approval of a majority of all of the Directors of the Board of Directors.
(c) Contributions by the Parties.

1. Administrative Cost Contributions. The GCCOG shall be responsible for GCAHT’s administrative costs until June 30, 2024. After this initial period, and in consideration of the mutual promises contained herein, the Parties agree that they 8 | Page
shall make annual contributions (each a “Fee” and collectively the “Fees”) towards the budgeted administrative costs of GCAHT in accordance with a cost allocation formula as outlined below:

POPULATION ANNUAL ADMINISTRATIVE
FEE
Up to 30,000 $7,500
30,001 – 60,000 $15,000
60,001 – 100,000 $32,500
>100,000 $47,500
The Fees shall be assessed annually. After the first fiscal year, the Fees shall increase annually in an amount equal to the U.S. Bureau of Labor Statistics consumer price index for all urban consumers in the Los Angeles-Long BeachAnaheim area for the 12-month period preceding the year the Fees are assessed.

Payment of the Fees shall be due within 30 days of receipt of an invoice from the GCAHT. The invoice shall indicate how the Fees were calculated. A Party's contribution to GCAHT's administrative costs shall be in the form of money, unless the Board of Directors approves another form of contribution such as services, personal property or use of real or personal property, or other in-kind contributions.

The acceptance and valuation of any such non-monetary contributions may be used to offset in whole or part a Party’s contribution as determined in the sole and absolute discretion of the Board of Directors. Notwithstanding the above, after the first fiscal year the Board of Directors may establish Fees in an amount the Board of Directors deems financially prudent; provided it shall roughly be proportional as to each Party in the amounts reflected in the table above.

2. Program Cost Contribution. The particular programs and program budget, funded, sponsored or operated by GCAHT, as well as the level of, and mechanisms for, the involvement of GCAHT and each Party, in such programs and program budget, shall be determined and approved by the Board of Directors. (d) Accounts and Reports.

1. Books and Records. There shall be strict accountability of all GCAHT funds and accounts and report of all GCAHT receipts and disbursements. Without limiting the generality of the foregoing, GCAHT shall establish and maintain such funds and accounts as may be required by good accounting practice. The books and records of GCAHT shall be open to inspection at all reasonable times by each Party and its duly authorized representatives.

2. Annual Audit. The person appointed by the Board of Directors to perform the auditor function for GCAHT shall cause an annual independent audit of the 9 | Page
accounts and records of GCAHT and records to be made by a certified public accountant or firm of certified public accountants in accordance with Government Code section 6505. Such audits shall be delivered to each Party and shall be made available to the public.

3. Annual Financial Report. Pursuant to section 6539.5 of the Government Code, GCAHT shall publish an Annual Financial Report that shall describe the funds received by GCAHT and the use of such funds by GCAHT. The Annual Financial Report shall describe how the funds received by GCAHT have furthered the purposed of GCAHT.
(e) Funds. Subject to the applicable provisions of any instrument or agreement which GCAHT may enter into, which may provide for a trustee or other fiscal agent to receive, have custody of and disburse GCAHT funds, the person appointed by the Board of Directors to perform the treasurer function for GCAHT shall receive, have the custody of and disburse GCAHT funds as nearly as possible in accordance with generally accepted accounting principles, shall make the disbursements required by this Agreement or to carry out any of the provisions or purposes of this Agreement.

Section 8. Amendments and Additional Parties.
(a) This Agreement may not be amended or modified except by a vote of two-thirds of all the Parties through formal action approving such an amendment by the Parties’ respective governing bodies.
(b) No addition to, or alteration of, the terms of this Agreement, whether by written or oral understanding of the parties, their officers, employees or agents, shall be valid or effective unless made in the form of a written amendment which is formally adopted and executed by the Parties in the same manner as this Agreement.

Section 9. Non-Liability for Obligations of GCAHT.
(a) The debts, liabilities, and obligations of GCAHT shall not be the debts, liabilities and obligations of any of the Parties or personal debts, liabilities and obligations or the Directors, officers or employees of GCAHT; provided that a Party may, by an agreement separate from this Agreement, contract for, or assume responsibility for, specific debts, liabilities, or obligations of GCAHT.

1. Indemnification. The GCAHT shall defend, indemnify and hold harmless each Party, its officers, agents, employees, representatives and volunteers (the “Indemnitees”) from and against any loss, injury, claim, lawsuit, liability, expense, or damages of any kind or nature (collectively, “Claims”) brought by a third party which arises out of or in connection with GCAHT’s administration of this Agreement, including such third party claims arising out of or in connection with any Indemnitees acting within their authorized capacity as an officer, agent, employee, representative or volunteer of GCAHT. The GCAHT’s duty to defend and indemnify under this Section shall not extend to Claims otherwise arising out of the Indemnitees’ own active negligence, omissions or willful misconduct, 10 | Page
whether in whole or part. The GCAHT shall finance its obligation pursuant to this Subsection by establishing a liability reserve fund, and/or by purchasing commercial insurance, and/or by joining a joint powers insurance authority (JPIA) as determined by the Board. In the event the GCAHT’s financial obligations to indemnify, defend and hold harmless, pursuant to this Subsection, exceed the liability reserve fund and/or the proceeds from any applicable insurance and/or JPIA coverage maintained by the GCAHT (hereinafter “Unfunded Liability”), a Party or Parties may meet and confer with GCAHT in good faith to negotiate alternative means or mechanisms by which GCAHT may fund such Unfunded Liability; however, in no event shall the event of an Unfunded Liability relieve, limit or waive GCAHT’s obligations of indemnity or defense to each Party as first set forth above in this Section. Nothing herein shall obligate any Party to indemnify or hold harmless GCAHT for any Unfunded Liability.

2. Assignment. Each Party shall assign to the GCAHT its rights, title, and interest to recover damages from any third party for Claims arising out of this Agreement, to the extent that the GCAHT has met its obligations to defend and indemnify such Party pursuant to this Section.

3. Survival. GCAHT’s duty to defend, indemnify and hold harmless shall survive and continue in full force and effect after withdrawal of any Party from this Agreement, including as to the withdrawing Party, or termination of this Agreement for any reason with respect to any Claims that occurred before the date of such withdrawal or termination.

Section 10. Admission and Withdrawal of Parties.
(a) Admission of New Parties. It is recognized that additional Parties other than the original Parties, may wish to join GCAHT. Any city within the Gateway Cities subregion may become a Party to GCAHT upon such terms and conditions as established by the Board of Directors. As a condition precedent to becoming a Party more than six months after the Effective Date, an eligible entity may thereafter become a Party to this Agreement; provided that (1) this Agreement is adopted by its governing body and (2) the eligible entity pays a late joining fee. The late joining fee shall be calculated by totaling the annual fee the eligible entity would have paid under this Agreement had it been a Party in all years prior and up until the Effective Date.

Notwithstanding the foregoing, an eligible entity’s late joining fee shall not exceed two times the amount of the applicable annual administrative fee existing at the time it becomes a Party. Payment shall be due within 30 days of receipt of an invoice from GCAHT.
(b) Withdrawal from GCAHT. Parties may withdraw from GCAHT at any time upon their governing board’s adoption of a resolution that so states the Party’s intent to withdraw from GCAHT. The withdrawal of any Party, either voluntarily or involuntarily, unless otherwise provided by the Board of Directors, shall be conditioned as follows:
11 | Page

1. In the case of a voluntary withdrawal, written notice shall be given to GCAHT six months prior to the effective date of withdrawal; and

2. Unless otherwise provided by a unanimous vote of the Board of Directors, withdrawal shall result in the forfeiture of that Party’s rights and claims relating to distribution of property and funds upon termination of GCAHT as set forth in Section 2 above. Withdrawn members shall not be entitled to any reimbursement of Fees.

Section 11. Notices.
(a) Notices required or permitted hereunder shall be sufficiently given if made in writing and delivered either personally or by registered or certified mail, postage prepaid, to the persons and entities listed herein at the following addresses, or to such other address as may be designated to GCAHT on the Parties signature page for formal notice:

Section 12. Miscellaneous.
(a) Section Headings. The section headings herein are for convenience only and are not to be construed as modifying or governing or in any manner affecting the scope, meaning or intent of the provisions or language of this Agreement. (b) Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original, but all together shall constitute but one and the same Agreement.
(c) Laws Governing. This Agreement is made in the State of California under the Constitution and laws of such State and shall be construed and enforced in accordance with the laws of California.
(d) Severability. Should any part, term, portion or provision of this Agreement, or the application thereof to any person or circumstance, be held to be illegal or in conflict with any law of the State of California, or otherwise be rendered unenforceable or ineffectual it shall be deemed severable, and the reminder of this Agreement or the application thereof to other persons or circumstances shall continue to constitute the Agreement the Parties intended to enter into in the first instance. (e) Successors. This Agreement shall be binding upon and shall inure to the benefit of the successors of the respective Parties. No Party may assign any right or obligation hereunder without the written consent of a majority of the other Parties.

IN WITNESS THEREOF, the Parties hereto have caused this Agreement to be executed and attested by their duly authorized officers as follows:
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City of Santa Fe Springs
______________________________
BY: Title
Dated: ___________________________
ATTEST:
___________________________________________
Janet Martinez Date
NOTICE TO CITY TO BE GIVEN TO:

ATTN: CITY MANAGER OFFICE
City of Santa Fe Springs
11710 Telegraph Road
Santa Fe Springs, CA 90670
APPROVED AS TO FORM:

By: __________________________________________
City’s Legal Counsel Date
Gateway Cities
Affordable Housing Trust
Bylaws
Approved by the
Gateway Cities Affordable Housing Trust Board of Directors On ___________, 2023
ATTACHMENT 3
Table of Contents
Part 1 – Introduction to the Gateway Cities Affordable Housing Trust................................. 1 Establishment............................................................................................................................ 1 GCAHT Guiding Vision and Mission ..................................................................................... 1 GCAHT Guiding Principles..................................................................................................... 1 Part 2 – Bylaws of the Gateway Cities Affordable Housing Trust........................................... 2 ARTICLE I - Name .................................................................................................................. 2 ARTICLE II – Board of Directors.......................................................................................... 2 Section A: GCAHT Board of Directors .............................................................................. 2 Section B: Selection of Advisory Board Members ............................................................ 3 Section C: Terms and Vacancies ......................................................................................... 3 ARTICLE III – Duties of Officers and Board Members ...................................................... 3 Section A: Duties of the Board of Director Members: ...................................................... 3 Section B: Formation of Subcommittees............................................................................ 3 ARTICLE IV – Meetings......................................................................................................... 4 Section A: Regular Meetings................................................................................................ 4 Section B: Special Meetings ................................................................................................. 4 Section C: Voting on Project Funding ............................................................................... 4 Section D: Voting on Amending GCAHT’s Bylaws, Principles, or Procedures ............. 4 Section E: Minutes ............................................................................................................... 4 Section F: Meeting Procedure.............................................................................................. 4 Section G: Location of Meetings ......................................................................................... 4 ARTICLE V – GCAHT Board Code of Conduct.................................................................. 5 Section A: Compliance with Policies ................................................................................... 5 Section B: Conflicts of Interest ........................................................................................... 5 Section C: Confidentiality ................................................................................................... 5 Section D: Gifts or Honoraria ............................................................................................. 6 Section E: Harassment ........................................................................................................ 6 Section F: Laws and Regulations........................................................................................ 6 1 | Page
Part 1 – Introduction to the Gateway Cities Affordable Housing Trust
Establishment
On January 4, 2023, the Gateway Cities Council of Governments approved the formation of the Gateway Cities Affordable Housing Trust (“GCAHT” or “Trust’). The Trust is a joint powers agency, which may do any of the following: (1) fund the planning and construction of affordable housing of all types and tenures for persons and families of extremely low, very low, low, and moderate income as defined in Section 50093 of the Health and Safety Code; (2) receive public and private financing and funds; and (3) authorize and issue bonds, certificates of participation, or any other debt instrument repayable from funds and financing received and pledged by the Trust.

The Trust may consist of any of the cities within the Gateway Cities Council of Governments, which is a joint powers agency representing a subregion of Los Angeles County.

The GCAHT was established on ______________, by the execution of the Joint Exercise of Powers Agreement (the “Agreement”) by and between the Cities of ____________, ________________, __________________ (collectively, the “Cities”). These Bylaws were adopted by GCAHT’s Board of Directors and provide for the organization and administration of GCAHT. These Bylaws supplement the Agreement.

GCAHT Guiding Vision and Mission
A Steering Committee consisting of staff from various cities within the boundaries of the Trust along with individuals representing Los Angeles County, affordable financing, and affordable developers met on three separate occasions to discuss and recommend various governance, policy, and a guiding vision and mission as follows:

The vision of the Gateway Cities Affordable Housing Trust is to secure funding for the region that will increase the production of affordable housing and provide safe and quality homes for lower and moderate-income individuals and families.

The mission of the Gateway Cities Affordable Housing Trust is to finance the development of affordable housing in the region and thereby increase the supply of housing to lower and moderate-income individuals and families.

GCAHT Guiding Principles
The guiding principles of the GCAHT:

1. Implement the findings and declarations of the Agreement.

2. Provide funding based on principles of fiscal responsibility and demonstrated value to the taxpayer and funder.
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3. Retain local control and the ability for local governments to use GCAHT funding for housing solutions when needed, or to participate within the region as a whole.

4. Demonstrate accountability and transparency for members of the Agreement and the public.

5. Promote public-private partnerships, nonprofit collaborations, and community building to maximize sources of public and private funds, when available, and to efficiently accelerate housing for moderate, low, very low and extremely low-income individuals and families.

6. Provide opportunities to strengthen local partnerships and increase capacity of local cities and agencies engaged in fulfilling housing goals.

7. Commit to innovation and best practices in financing, production, and service delivery in supportive housing.

8. Serve the region’s needs geographically by (1) extremely low, very low, low, and moderate income, and supportive housing types and (2) by population.

9. Foster collaborative planning to allow for project prioritization and establish a pipeline of projects.

10. Provide access to funding to ensure that the Gateway Cities subregion receives the maximum benefit for the resources provided.

11. Incorporate County’s Coordinated Entry System in conjunction with the cities’ locally driven protocols to ensure that the developed housing resources has appropriately targeted and prioritized eligible homeless populations for each project.

Part 2 – Bylaws of the Gateway Cities Affordable Housing Trust ARTICLE I - Name
The name of this entity shall be the “Gateway Cities Affordable Housing Trust” or “GCAHT” in these Bylaws.

ARTICLE II – Board of Directors
Section A: GCAHT Board of Directors

1. All members of the Board of Directors must be from a member city that is a party to the Agreement and shall be appointed as set forth in the Agreement. 3 | Page

2. Each of the nine (9) voting members of the Board of Directors of GCAHT shall be entitled to one (1) vote on the Board.

Section B: Selection of Advisory Board Members
An Advisory Board may be appointed by the Trust Board consisting of various government staff, persons with housing development, housing services, finance, and development expertise.

All Advisory Board members are entitled to attend all GCAHT regular and special meetings and to fully participate in such meetings but shall not constitute voting members of the Board.

Advisory Board members need not be elected officials.

Section C: Terms and Vacancies

1. Board of Directors: As set forth in the Agreement, terms of office for members of the Board of Directors shall be for two (2) years. A Board of Director’s seat shall be deemed vacant if he or she leaves elected office, or if his or her appointing body removes him or her. Upon a vacancy, the appointing body shall be notified and shall attempt to fill the vacancy within sixty (60) days of the vacancy occurring.

2. Advisory Board: Terms of office for members of the Advisory Board shall be for two (2) years. An Advisory Board member’s seat shall be deemed vacant if that member fails to attend three consecutive regular or special meetings. Upon a vacancy, the Trust Board shall be notified and shall attempt to fill the vacancy within sixty (60) days of the vacancy occurring.

ARTICLE III – Duties of Officers and Board Members
Section A: Duties of the Board of Director Members:

1. Meet when called by the Chair to plan and coordinate the business and proposed activities of GCAHT;

2. Review and consider applications for project funding;

3. Review and consider GCAHT’s financial information, including the Annual Financial Report, any related independent audit, and the GCAHT’s annual budget; and

4. Serve on subcommittees or task forces when appropriate.

Section B: Formation of Subcommittees
The Board may create subcommittees or task forces to accomplish the goals and purposes of 4 | Page
GCAHT.

ARTICLE IV – Meetings
Section A: Regular Meetings
Regular meetings of GCAHT’s Board shall be held once every two (2) months, unless otherwise called by the Chair. Meeting notice, agenda, and public comment procedures shall comply with the provisions of the Ralph M Brown Act. The Clerk of the Board shall prepare meeting agendas and handle noticing requirements.

Section B: Special Meetings
Special meetings of GCAHT may be held at any time upon call of the Chair, provided that the special meetings’ noticing, and agenda complies with the Ralph M. Brown Act.

Section C: Voting on Project Funding
As set forth in the Agreement, every act or decision done or made by a majority of the Directors present at any meeting at which a quorum is present shall be the act of the Board of Directors.

However, the Board should strive to attain a unanimous decision on all projects which receive funding from GCAHT.

Section D: Voting on Amending GCAHT’s Bylaws, Principles, or Procedures

1. Amendments to GCAHT’s Bylaws, Principles or Procedures shall be considered at a regular meeting and shall comply with the Ralph M. Brown Act.

2. An amendment to these Bylaws must be approved by a majority vote of the Board of Directors.

Section E: Minutes
The Clerk of the Board shall take minutes for GCAHT. A previous meeting’s minutes shall be considered and approved at a subsequent meeting by a majority vote of the Board of Directors.

Section F: Meeting Procedure
The conduct of meetings shall be guided by Robert's Rules of Order (most recent published edition) where the question at issue is not determined by these Bylaws.

Section G: Location of Meetings
The Board must meet in publicly accessible places typical for hosting public meetings, such as 5 | Page
Council Chambers or city community rooms.

ARTICLE V – GCAHT Board Code of Conduct
This GCAHT Board Code of Conduct represents GCAHT’s commitment to high standards of ethics, public service, collegiality, and transparency. The following standards should be regarded as minimum expectations for conduct. GCAHT Board Members will act in accordance with and maintain the highest standards of professional integrity, impartiality, diligence, creativity, and productivity. GCAHT will act in accordance with applicable federal, state, and local laws and regulations.

Section A: Compliance with Policies
Members of the Board of Directors and Advisory Board will conduct the GCAHT business in accordance with the Agreement, these Bylaws, and all adopted policies, including conflict of interest policies.

Section B: Conflicts of Interest

1. The Board of Directors may not have a conflict of interest as determined by the California Political Reform Act (the “Act”), inclusive of the Levine Act, California Government Code section 81000, et. seq., and the regulations promulgated to effectuate the Act. Nor shall the Board of Directors have a conflict of interest under California Government Code section 1090.

2. Members of the Board of Directors are required to file a Statement of Economic Interest (Form 700) in the disclosure category as designated on the GCAHT Conflict of Interest Code.

Section C: Confidentiality
Members of the Board of Directors and Advisory Board must maintain the highest standards of confidentiality regarding information obtained directly or indirectly through their involvement with the GCAHT. This includes but is not limited to information about applications for funding, GCAHT members and their organizations and funded agencies. Members must also avoid inadvertent disclosure of confidential information through casual public discussion, which may be overheard or misinterpreted. Notwithstanding the foregoing, the GCAHT recognizes that excepting such confidential information which must be carefully preserved, the conduct of its business shall be open and transparent in accordance with the Ralph M. Brown Act and the California Public Records Act.
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Section D: Gifts or Honoraria
It is not permissible for members of the Board of Directors and Advisory Board to offer or accept gifts, gratuities, excessive favors, or personal rewards intended to influence GCAHT decisions or activities.

Section E: Harassment
Harassment, interpreted as unwelcome conduct, comment, gesture, contact, or intimidating and offensive behavior likely to cause offense or humiliation, will not be tolerated and may result in disciplinary measures up to and including removal from GCAHT Board.

Section F: Laws and Regulations
GCAHT business will be conducted in a manner that reflects the highest standards and in accordance with all applicable federal, state, and local laws and regulations.

City Council Meeting March 21, 2023
Report Submitted By: Travis Hickey & Lana Dich Date of Report: March 16, 2023 Finance & Administrative Services
City of Santa Fe Springs

NEW BUSINESS
Fiscal Year (FY) 2022-2023 Midyear Budget Review and Modifications

BACKGROUND
Annually, the midyear budget review process presents an opportunity to adjust forecasted revenues, appropriation amounts, and budget assumptions based on fiscal year-to-date actual information. The fiscal year (“FY”) 2022-23 budget was originally adopted in June 2022. Since the pandemic started, consumer behavior has shifted, and the City experienced greater than anticipated online sales and continued growth in business-to-business sales. Sales Tax and Measure Y revenues (2/3 of our General Fund revenue) have outperformed our projections. These favorable revenue results are partially offset by anticipated increases in expenditures, primarily due to rising inflation.

The midyear adjustments being recommended have taken into account any potential disruption in the general economy that the current geopolitical climate may cause.

Staff will continue to monitor any adverse fluctuation in anticipated trends for the remaining part of the fiscal year.

General Fund
Staff recommends a $3.0 million positive adjustment to the revenue and $1.0 million negative adjustment to the expenditures. The results from the adjustments in the General Fund are anticipated to create a budget surplus of $3.5 million. This is an increase of approximately $2.0 million to the budget surplus in comparison to the originally adopted budget (attachment A). As stated, the most significant reason for the change is due to greater than anticipated Sales Tax ($2.4 million increase) and Measure Y ($560,000) revenues. Departmental expenditures as a whole are expected to increase by $1.0 million; there are various savings in expenditures and increases in applied revenues (attachment C) across activities.

Revenues (Attachments A and B)
The originally adopted budget had a projected General Fund revenue of $69.6 million (not including Applied Revenues). The revised midyear budget forecast is $72.6 million, or $3.0 million more than originally estimated. The vast majority of revenue sources are anticipated to come within the targeted budget range – barring any potential economic disruption. The recommended adjustments are for the City’s Sales Tax of $2.4 million and Measure Y of $560,000. Modest increases are also expected in property transfer taxes of $39,400.

RECOMMENDATION
• Approve the proposed revenue and expenditure adjustments as detailed in Attachments A through C.

ITEM NO. 12
City Council Meeting March 21, 2023
Report Submitted By: Travis Hickey & Lana Dich Date of Report: March 16, 2023 Finance & Administrative Services
City of Santa Fe Springs
Additionally, applied revenues (departmental revenues) need adjustments across the City. The need for favorable departmental revenue adjustments is due to increased demand for in-person services as the City experiences economic recovery from the pandemic. Increases include Family Human Services’ bartending and catering licensing of $10,000, facility rentals revenues of $11,500, Fire’s emergency response reimbursements of $184,000, Environmental Protection plan check activities of $90,000, Plan Check & Inspection fees of $20,000, and Planning’s Building and Regulation Inspection fees of $700,000. These increases were partially offset by decreases in Library’s passport services by ($80,000) due to delays in the implementation of the program and a reduction of Police Services’ animal licenses by ($10,000) (attachment C).

Expenditures (Attachments A and C)
Total budgeted expenditures and uses in the originally adopted budget were approximately $68.1 million. The proposed expenditure adjustments of $1.1 million resulted in a revised budget of $69.1 million, or a 1.5% increase.

While the net impact of the proposed adjustments results in a relatively modest increase, there are recommended adjustments in expenditures throughout departments. Staff recommends an adjustment of $250,000 in the City Manager’s non-recurring activity, which includes $225,000 for a legal settlement payment and $25,000 for City Manager recruitment services. The recruitment services were previously approved during the fiscal year.

The City’s Community Services Department includes an increase of $25,000 in Parks and Recreation to enhance the Halloween Carnival event, which was previously approved during the fiscal year.

The Finance Department is requesting an adjustment of $319,300, which includes:
$28,500 for the voice mail system replacement and E911 phone system as required by law; $30,000 increase in tuition reimbursement corresponding to an increase in participation by employees; $160,000 for the upgrade of the City Hall Campus phone system to a new platform; $24,800 for the Exchange Server update; and $76,000 for additional paint, carpet, and window covering costs for the Finance and Human Resources cubicle replacement project.

The Fire-Rescue Department is requesting an adjustment of $328,100, which includes: $325,000 to backfill vacant positions with existing personnel due to Strike Team engagements and Urban Search and Rescue responses; $127,000 increase in ongoing costs of Urban Search and Rescue supplies, parts, and natural wear and tear vehicle repair costs; $90,000 increase in environmental protection plan check costs; $39,700 in ongoing utilities and station repairs; and an additional $20,400 increase in Fire Headquarters office replacement project. As noted previously, these costs are City Council Meeting March 21, 2023
Report Submitted By: Travis Hickey & Lana Dich Date of Report: March 16, 2023 Finance & Administrative Services
City of Santa Fe Springs
partially offset by an additional $184,000 in Emergency Response Reimbursements from the Strike Team engagements and $90,000 of environmental protection plan check revenues.

The Planning Department is requesting an adjustment of $420,000 in net savings, which includes a $100,000 increase in contractual services to backfill existing personnel along with a $200,000 increase in contracted inspection services. These increases are offset by an adjustment to recognize an additional $720,000 in Plan Check and Inspection Fees.

Police Services is requesting an adjustment of $238,500 which includes $200,000 for contracted operational overtime and $28,500 for a one-year subscription of ten (10) Stationary Automated License Plate Readers (ALPR). The ALPR adjustment was previously approved during the fiscal year.

Additionally, Public Works is requesting an adjustment of $255,000, which includes:
$165,000 increase in supplies and materials for various activities due to rising costs; $50,000 for the acquisition of tamper-proof pull box lids for the City’s streetlights; $20,000 replacement of stolen street light wire; and $20,000 of overtime for Citywide projects. City staff estimates that approximately 25% of the City’s lights are out due to vandalism, and the pull box lids will help deter further damages to the City’s streetlights.

The originally adopted budget included an anticipated $1.5 million operating surplus (attachment A). Staff is now projecting a budget surplus of $3.5 million. However, there are no recommendations on the use of the additional funding at this time. Once the fiscal year-end results are available, staff will present recommendations to the City Council.

Water Utility Fund
Expenditures and Revenues for the Water fund are trending to meet the budgeted range and an adjustment is not recommended at this time.

Future Outlook
As discussed on previous occasions, staff continues to monitor ongoing economic and organizational issues as we look forward to developing the FY 2023-24 budget. These include:

Current Geopolitical Climate – The invasion of Ukraine by Russia presents an undeniable level of uncertainty in the economy. As with any conflict, there are lasting and spillover effects on the national and local economy that can linger for years to come.

City Council Meeting March 21, 2023
Report Submitted By: Travis Hickey & Lana Dich Date of Report: March 16, 2023 Finance & Administrative Services
City of Santa Fe Springs
COVID-19 and rising inflation – Although society has begun to adapt to the “new” normal, the virus as well as any potential future variants are still a threat for a segment of the general population. As long as the virus remains a threat, the impacts of it on the economy will continue to be felt. The COVID-19 lockdowns in China have exacerbated issues, creating supply chain disruption.

Inflation can also jeopardize the City’s positive financial position as the rise in cost of services and supplies will affect the City’s ability to deliver programs and services in a cost-efficient manner.

CalPERS’ Unfunded Liability – The growth in the City’s Unfunded Liability is also a significant challenge. There are a number of reasons for the substantial increase in the unfunded liability, including a smaller City workforce relative to the number of retirees, CalPERS investment losses, a lower investment discount rate, a shorter amortization period, changes in mortality assumptions, and changing the unfunded liability payment from a percentage of payroll to a fixed amount each year. If investment performance does not meet expectations, the discount rate is lowered further, or other assumption changes are made, these rates could escalate even higher. City staff have established a Pension Trust Fund and will aid in mitigating future impacts on the City’s General Fund.

Infrastructure Funding – While there are funds and accounts that have been established by the City Council, the City will be challenged to provide an increased level of funding to address significant deferred maintenance needs moving forward.

FY 2023-2024 Operating Budget
Staff has started the preparation and development of the FY 2023-24 operating budget. There are a variety of strategic assumptions that will be included in the upcoming budget to ensure the City’s long-term financial viability. For both the General and Water Utility Funds, it is anticipated that the operational changes implemented over the last several years will provide stability in the long term. Staff will continue to work with the City Council through the Finance Subcommittee and Budget Subcommittees to continue the pursuit of internal operating efficiencies and strategies to minimize costs and impacts to City services while exploring new and innovative revenue ideas.

City Council Meeting March 21, 2023
Report Submitted By: Travis Hickey & Lana Dich Date of Report: March 16, 2023 Finance & Administrative Services
City of Santa Fe Springs

FISCAL IMPACT
If the recommended midyear changes to the budget are approved, the City’s General Fund position will improve from an initial budget surplus of $1.5 million to a budget surplus of $3.5 million.

Tom Hatch
Interim City Manager
Attachments:

A – FY 2022-23 Midyear Budget Review Summary
B – FY 2022-23 Midyear Budget Review Revenue Adjustments C – FY 2022-23 Midyear Budget Review Operating Adjustment

ATTACHMENT A
FY 2022-2023 Midyear Budget Review
Summary
General Fund
Original Proposed
Adopted Midyear
Budget Budget $ %
Revenues 69,618,300 72,617,700 2,999,400 4.3%
Expenditures
Department 63,587,100 64,145,300 (558,200) -0.9%
Non-Recurring 1,689,900 2,186,100 (496,200) -29.4%
Interfund Transfers 2,800,000 2,800,000 - 0.0%
68,077,000 69,131,400 (1,054,400) -1.5%
Operating Surplus / (Deficit) $ 1,541,300 $ 3,486,300 $ 1,945,000 126.2% Net Change in
Available Fund Balance $ 1,541,300 $ 3,486,300 $ 1,945,000 - Water Fund
Original Proposed
Adopted Midyear
Budget Budget $ %
Revenues 16,966,100 16,966,100 - 0.0%
Expenditures
Department 14,657,700 14,657,700 - 0.0%
Capital Improvement Projects 438,500 438,500 - 0.0%
Interfund Transfers 1,376,300 1,376,300 - 0.0%
Debt Service 493,600 493,600 - 0.0%
16,966,100 16,966,100 - 0.0%
Surplus / (Deficit) $ - $ - $ - -
Favorable / (Unfavorable)
Favorable / (Unfavorable)
Change
Change
Midyear
Account Actual Actual Adopted Budget
Number Revenue Source FY 2020-21 FY 2021-22 FY 2022-23 FY 2022-23 $ % Taxes
411010 Property $ 3,050,961 $ 3,023,144 $ 2,350,000 $ 2,350,000 $ - 0.0% 411020 Property - Pass Thru to City 2,555,438 2,340,803 1,850,000 1,850,000 - 0.0% 411060 Utility User's Tax (UUT) 6,618,376 7,568,007 6,300,000 6,300,000 - 0.0% 411030 Sales & Use 32,097,995 39,335,559 33,600,000 36,000,000 2,400,000 7.1% 411035 Transactions & Use (Measure Y) 13,682,006 15,661,416 14,200,000 14,760,000 560,000 3.9% 411500 Transient Occupancy 172,204 158,797 149,000 149,000 - 0.0% 411040 Franchise 3,411,092 3,656,441 3,265,000 3,265,000 - 0.0% 411050 Business Operations 754,270 795,155 765,000 765,000 - 0.0% 411530 Property Transfer 354,943 360,207 260,600 300,000 39,400 15.1% 411510 Oil Well 150,524 145,024 135,000 135,000 - 0.0%
411520 Barrel 138,200 55,833 288,400 288,400 - 0.0%
Total Taxes 62,986,009 73,100,386 63,163,000 66,162,400 $ 2,999,400 4.7% Use of Money & Property
415200 Interest Earnings 303,270 411,622 500,000 500,000 - 0.0% 415210 Realized Gains/Loss on Inv 220,256 (2,078,390) - - - 415220 Unrealized Gains/Loss on Inv (761,346) (3,059,796) - - - 415300 Rentals 326,011 335,893 304,000 304,000 - 0.0%
415310 Ground Lease 880,950 823,999 823,900 823,900 - 0.0% 415320 Development 175,299 405,709 315,200 315,200 - 0.0% Total Use Of Money & Property 1,144,440 (3,160,963) 1,943,100 1,943,100 $ - 0.0% State Subventions
415100 Vehicle In Lieu Taxes 2,297,474 2,359,894 2,266,000 2,266,000 - 0.0% Total State Subventions 2,297,474 2,359,894 2,266,000 2,266,000 $ - 0.0% Other
415900 Other 298,969 289,979 1,046,200 246,200 (800,000) 0.0% 426000 Greenwaste Host Fee 813,551 977,589 - 800,000 800,000 415330 Water Utility Lease Payment 1,000,000 1,000,000 1,200,000 1,200,000 - 0.0% Total Other 2,112,520 2,267,568 2,246,200 2,246,200 $ - 0.0% Total General Fund $ 68,540,443 $ 74,566,885 $ 69,618,300 $ 72,617,700 2,999,400 4.3%

ATTACHMENT B
2022-2023 Midyear Buget Review
General Fund Revenues
Adopted FY 22-23 vs.

Midyear FY 22-23
Variance
FY 2022-23 Midyear Budget Review
Expenditure and Applied Revenue Adjustments
Description
General Fund
Proposed Midyear Adjustments:

Operating/Departmental Expenditures
General Government
City Manager - Increase in Non-Recurring for City Manager recruitment (1) $ 25,000 City Attorney - Increase in Non-Recurring for legal settlement 225,000 Net Costs /(Savings) 250,000
Community Services
Library - Decrease in Passport Services revenue * 80,000 Parks & Recreation - Increase in Halloween Carnival costs (1) 25,000 Family & Human Services - Increase in Bartending and Catering licensing fees * (10,000) Family & Human Services - Increase Facility Rentals at GVNC * (11,500) Net Costs /(Savings) 83,500
Finance
Technology Services - Increase Contractual Services for replacement Voice Mail system and E911 systems 28,500 Technology Services - Increase in Non-Recurring costs for exchange server update 24,800 Human Resources - Increase in Tuition Reimbursement corresponding to Increase in Participants 30,000 Finance/Human Resources - Increase in Non-Recurring costs for cubicle replacement project - paint and carpet 41,000 Finance/Human Resources - Increase in Non-Recurring costs for cubicle replacement project - window coverings 35,000 Administrative Services - Increase in Non-Recurring to upgrade City Hall Campus phone system 160,000 Net Costs /(Savings) 319,300
Fire-Rescue
Suppression - Increase in Emergency Response Reimbursement * (184,000) Suppression - Increase in OT corresponding to increase in Emergency Response Reimbursement 325,000 Suppression - Increase in US&R supplies and mechanical parts costs 127,000 Environmental Protection - Increase in Plan Check Revenue * (90,000) Environmental Protection - Increase in Contractual Services for Plan Check Costs 90,000 Buildings & Grounds - Increase in Maintenance and Utilities costs at fire stations 39,700 Increase in Non-Recurring for Fire Headquarters/Offices replacement 20,400 Net Costs /(Savings) 328,100
Planning
Planning - Increase in Plan Check & Inspection Fees * (20,000) Planning - Increase in Contractual Services backfilled existing personnel for environmental related projects 100,000 Building & Regulation - Increase in Inspection Fees * (700,000) Building & Regulation - Increase in Contractual Services correlates with increase in Inspection Fees 200,000 Net Costs /(Savings) (420,000)
Police Services
Animal Control - Reduction in Animal License Revenue * 10,000 Contract Patrol - Increase for Automated License Plate Readers (1) 28,500 Contract Patrol - Increase in Operational Overtime 200,000 Net Costs /(Savings) 238,500
Budget Adjustments

ATTACHMENT C
FY 2022-23 Midyear Budget Review
Expenditure and Applied Revenue Adjustments
Description
General Fund
Proposed Midyear Adjustments:

Operating/Departmental Expenditures
Budget Adjustments

ATTACHMENT C
Public Works
Maintenance - Increase in cost of Supplies and Materials for various activities 165,000 Maintenance - Purchase tamper-proof street light pull box lids 50,000 Maintenance - Replacement of stolen street light wire at the City hall 20,000 Maintenance - Increase in OT for Citywide projects 20,000 Net Costs /(Savings) 255,000
General Fund - Total Expenditure Adjustments $ 1,054,400 * applied revenues (departmental revenues)
(1) previously approved by City Council
City Council Meeting March 21, 2023
Report Submitted By: Travis Hickey & Lana Dich Date of Report: March 16, 2023 Finance and Administrative Services
City of Santa Fe Springs

NEW BUSINESS
Presentation and Consideration of the City’s Annual Comprehensive Financial Report for the Fiscal Year ending June 30, 2022

BACKGROUND
Each year, the City engages an independent financial auditor to audit the City’s financial statements, known as the Annual Comprehensive Financial Report (“ACFR”). The purpose of the City's ACFR is to provide, independently audited, relevant financial information to the City Council, citizens, staff, grant entities, creditors, bond investors, rating agencies, and other concerned readers.

The City’s financial statements contained within the ACFR are presented in conformity with generally accepted accounting principles (“GAAP”) and audited in accordance with generally accepted governmental auditing standards (“GAGAS”).

The statements are reported on a fiscal year basis beginning July 1st and ending June 30th and have been audited by an independent firm of certified public accountants, CliftonLarsonAllen LLP (“CLA”) to provide reasonable assurance that the financial statements fairly present the City’s financial condition in all material respects. The ACFR, including Independent Auditors’ Opinion, are included here as attachment #1.

In keeping with best practices, the City Council has formed an Audit/Finance Subcommittee. Its members, Mayor Pro Tem Sarno and Councilmember Rounds, met with staff and CLA on March 13, 2023 to discuss the annual audit results. This is CLA’s third year auditing the City after being selected through a comprehensive procurement process in the summer of 2020.

As required by GAGAS, CLA has also issued a Report on Internal Control and Compliance and an Audit Communication Letter summarizing the results of the audit. These reports, included here as attachment #2 and #3, are used to communicate certain matters to the City Council. The audit did not identify any material weaknesses or significant deficiencies in internal controls.

Overall, the City’s General Fund Unassigned Reserve balance increased approximately $3.1 million from $24.9 million at June 30, 2021 to $28.0 million at June 30, 2022. In addition, the City’s General Fund Economic Uncertainty Reserve balance was $7.7 million and Unfunded Liability Reserve was $18.8 million at June 30, 2022.

RECOMMENDATION
Receive and file the City’s Annual Comprehensive Financial Report for the Fiscal Year ending June 30, 2022 and related communications.

ITEM NO. 13
City Council Meeting March 21, 2023
Report Submitted By: Travis Hickey & Lana Dich Date of Report: March 16, 2023 Finance and Administrative Services
City of Santa Fe Springs
In the Water Fund, the Unrestricted Net Assets increased approximately $2.9 million from a surplus of $218,253 million at June 30, 2021 to $3.1 million at June 30, 2022.

Attached is the City’s ACFR, Report on Internal Control and Compliance, and Audit Communications Letter.

FISCAL IMPACT
None.

Tom Hatch
Interim City Manager
Attachments:

1. Final audited FY 2021-2022 Annual Comprehensive Financial Report

2. Report on Internal Controls and Compliance

3. Audit Communication Letter

Annual Comprehensive
Financial Report
City of Santa Fe Springs, CA
Year Ended June 30, 2022
City Council
Juanita , Mayor
Jay Sarno, Mayor Pro-Tem
Annette Rodriguez, Councilmember
William K. Rounds, Councilmember
Joe Angel Zamora, Councilmember
Planning Commission Traffic Commission
David Ayala Blake Carter
Francis Carbajal Johana Coca
Joseph Flores Sally Gaitan
Gabriel Jimenez Felix Miranda
John M. Mora Linda Vallejo
Executive Management Team Prepared by:

Thomas R. Hatch, Interim City Manager Travis Hickey, Dir. of Fin. and Admn. Svcs Ivy M. Tsai, City Attorney Lana Dich, Finance Manager
Travis Hickey, Dir. of Fin. and Admn. Svcs Donna Mack, Senior Accountant Maricela Balderas, Dir. of Com. Services Erlinda Gutierrez, Accountant Chad A. Van Meeteren, Fire Chief Michelle Prieto, Administrative Assistant II Wayne Morrell, Director of Planning Oscar Jimenez, Fin./Admn. Svcs Intern Yvette Kirrin, Interim Director of Public Works
Dino Torres, Director of Police Services

CITY OF SANTA FE SPRINGS, CALIFORNIA

ANNUAL COMPREHENSIVE FINANCIAL REPORT
YEAR ENDED JUNE 30, 2022

PREPARED BY FINANCE DEPARTMENT

CITY OF SANTA FE SPRINGS

TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2022

INTRODUCTORY SECTION
Letter of Transmittal i
Organizational Chart xxiv
GFOA Certificate of Achievement for Excellence in Financial Reporting xxv

FINANCIAL SECTION
Independent Auditors Report 1
Managements Discussion and Analysis (Required Supplementary Information Unaudited) 5
Basic Financial Statements
Government-Wide Financial Statements
Statement of Net Position 13
Statement of Activities 14
Fund Financial Statements
Balance SheetGovernmental Funds 16
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position 18
Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds 20
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities 22 Statement of Net PositionProprietary Funds 23
Statement of Revenues, Expenses, and Changes in Fund Net Position Proprietary Funds 24
Statement of Cash FlowsProprietary Funds 25
Statement of Fiduciary Net Position 26
Statement of Changes in Fiduciary Net Position 27
Notes to Basic Financial Statements 29

REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED)
Budgetary Comparison ScheduleGeneral Fund 80
Budgetary Comparison ScheduleLow and Moderate Income Housing Assets Fund 81
Schedule of Changes in Net Pension Liability and Related Ratios Miscellaneous Plan Agent Multiple-Employer Plan 82
Schedule of ContributionsMiscellaneous PlanAgent Multiple-Employer Plan 84
Schedule of Proportionate Share of the Net Pension LiabilityCost Sharing Safety Plan 86

CITY OF SANTA FE SPRINGS

TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2022
Schedule of ContributionsCost Sharing Safety Plan 88
Schedule of Changes in the Net OPEB Liability and Related Ratios 90 Schedule of ContributionsOPEB 91
Notes to Required Supplementary Information 92

SUPPLEMENTARY INFORMATION
Combining Balance SheetNonmajor Governmental Funds 96
Combining Statement of Revenues, Expenditures, and Changes in Fund BalancesNonmajor Governmental Funds 100
Budgetary Comparison SchedulesSpecial Revenue Funds
State Gas Tax 104
County Transit Tax 105
Street Lighting Maintenance District 106
Art in Public Places 107
Air Quality Improvement 108
Community Development Block Grant 109
Public Safety Augmentation 110
Supplemental Law Enforcement Services 111
Transportation Center Expansion Parking Lot 112
Measure W 113
Combining Statement of Fiduciary Net PositionCustodial Funds 116 Combining Statement of Changes in Fiduciary Net PositionCustodial Funds 117

STATISTICAL SECTION (UNAUDITED)
Net Position by Component 120
Changes in Net Position 122
Fund Balances of Governmental Funds 126
Changes in Fund Balances of Governmental Funds 128
Assessed and Estimated Actual Value of Taxable Property 130 Direct and Overlapping Property Tax Rates 131
Principal Property Tax Payers 132
Property Tax Levies and Collections 133
Ratios of Outstanding Debt by Type 134
Ratio of General Bonded Debt Outstanding 135
Direct and Overlapping Debt 136
Legal Debt Margin Information 137

CITY OF SANTA FE SPRINGS

TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2022
Pledged-Revenue Coverage 140
Demographic and Economic Statistics 142
Principal Employers 143
Full-Time and Part-Time City Employees by Function 144
Operating Indicators by Function 145
Capital Asset Statistics by Function 146
(This page intentionally left blank)
(i)
February 23, 2023
Honorable Mayor & City Council and
Residents of the City of Santa Fe Springs:

Introduction It is our pleasure to submit for your information and consideration the Annual Comprehensive Financial Report of the City of Santa Fe Springs City . The responsibility for both the accuracy of the presented data and the completeness and fairness of the presentation, including all disclosures, rests with the Citys Department of Finance and Administrative Services. It is our opinion that the data as presented, is accurate in all material aspects; that it is presented in a manner designed to fairly set forth the financial position and results of operations of the City as measured by the financial activity of the various funds; and that all disclosures necessary to enable the reader to gain a full understanding of the financial activities have been included.

The enclosed financial statements are prepared in accordance with Generally Accepted Accounting Principles GAAP as recommended by the Governmental Accounting Standards Board GASB and include the report of the independent certified public accountants, CliftonLarsonAllen LLP. The complete report is divided into distinct sections:

Introduction- Letter of transmittal, an organizational chart, and prior year award for financial reporting.

Financial - Independent auditors report, Managements
Discussion and Analysis MD&A , basic financial
statements, accompanying notes to the financial
statements, required supplementary information,
and supplementary information.

MD&A complements this letter of transmittal and
should be read in conjunction with it.

Statistical - Pertinent financial and non-financial data that present historical trends and other information
about the City.

Juanita Martin, Mayor Jay Sarno, Mayor Pro Tem
City Council
Annette Rodriguez William K. Rounds Joe Angel Zamora Thomas R. Hatch, Interim City Manager
(ii)
This report presents the financial status of the City and its component units, the Successor Agency to the Community Development Commission, Housing Successor Agency, the Public Financing Authority, and Water Utility Authority as a single reporting entity. Although these component units are legally separate from the City, the City maintains significant financial accountability.

Financial accountability is defined as appointment of a voting majority of the component units board and either A the ability of the primary government to impose its will on the component unit, or B the possibility that the component unit will provide a financial benefit to or impose a financial burden on the primary government. For detailed information regarding the City and its component units, please refer to Notes to the Financial Statements section in this report..

In developing and modifying the Citys accounting system, consideration is given to the adequacy of internal accounting controls. Internal accounting controls are designed to provide reasonable, but not absolute assurance regarding:
1 The safeguarding of assets against loss from unauthorized use or disposition; and
2 The reliability of financial records for preparing financial statements and maintaining accountability for assets.

The concept of reasonable assurance recognizes that the cost of a control should not exceed the benefits likely to be derived from it and that the evaluation of costs and benefits requires estimates and judgments by management. All internal control evaluations occur within the above framework. We believe that the Citys internal accounting controls adequately safeguard assets and provide reasonable assurance of proper recording of financial transactions. The accounting system is maintained on a functional basis activity/sub-activity in order to reflect the services provided by the City.

The City maintains budgetary controls at the individual fund level to ensure compliance with the budget approved by the City Council. The budget includes estimated revenues and appropriations for the Citys General Fund and certain Special Revenue Funds. Operating plans for the Citys Water Utility Fund are also prepared as part of the budget.

Accounting
System and
Budgetary
Control
Introduction
cont.
(iii)
The urban development of Santa Fe Springs began in the early 1950s as the result of a planned effort by a coalition of business community members and local residents. During the ensuing years, community pressures resulted in the incorporation of the City on May 15, 1957. The new City covered 4.9 square miles with a population of 11,787. The City of Santa Fe Springs now encompasses nine square miles, with about 84% of the land zoned for commercial and industrial use. The Citys population is approximately 18,200; however, the daytime population is estimated at 95,000.

The City of Santa Fe Springs operates as a general law city under the councilmanager form of government. Five City Council members are elected at-large for alternating four-year terms. The Mayor is selected annually from among the five members of the City Council. The City Council is responsible for the Citys ordinances, operating resolutions, budget adoption and appointment of committee members. Overall, there are 11 standing committees, boards and commissions that provide input to the City Council. Among these are the Planning Commission and the Traffic Commission. The City Manager is responsible for administering the policies and directives approved by the City Council. The City Manager appoints the Executive Management Team, which is comprised of the Director of Finance & Administrative Services, Fire Chief, Director of Community Services, Director of Planning, Director of Police Services, and Director of Public Works.

Profile and
Government
Structure
(iv)
The City of Santa Fe Springs is strategically located in southeast Los Angeles County with access to major seaports, airports and transportation corridors.

With the vast majority of the City zoned for commercial and industrial use, Santa Fe Springs has historically experienced strong development and redevelopment activity in the community. Sales taxes, transaction and use taxes, and utility users taxes UUT revenues are the largest sources in the General Fund.

The Citys sales tax base is comprised of businesses within the following categories: Business and Industry Manufacturing and business-to- business sales , Building and Construction, Autos and Transportation, General Consumer Goods, Fuel and Service Stations, Restaurants and Hotels and Food and Drugs. Close to two-thirds of the total sales tax revenue is generated by manufacturing and construction businesses. In the past couple of years, the Citys businesses have seen a growth in sales and has translated into increases in the Citys sales tax.

The Citys voters approved the additional 1% transactions and use tax Measure Y on November 2018, which became effective April 1, 2019. The additional tax has broadened the Citys revenue base and added over $10 million in General Fund revenue.

Although the COVID-19 pandemic and its economic impact were felt throughout our nation, the City was fortunate that our sales tax base was relatively unaffected by the pandemic as it had little to no effect on the Citys revenue stream. In fact, the Stay-at-Home orders generated greater than anticipated online sales which played a pivotal role in the Citys increased sales tax revenue. While the sales tax generated in FY 2020-21 was the highest the City had ever generated, the sales tax generated in FY 2021-22 surpassed last years amount. The Sales Tax revenue and its growth are critical to the Citys financial position as it represents nearly half of all of the Citys General Fund revenues.

Additionally, this is the third full year of collecting the voter-approved Transaction & Use Tax Measure Y and its trend is favorable for the City.

Measure Y has lessened some of the financial burdens that have threatened the Citys strong financial position. Even during a global pandemic, Measure Y continues to be a consistent and reliable stream of revenue for our City. The Sales Tax and Measure Y combined represent 60% of the Citys General Fund revenues.

The City is now in a position to accomplish its long-term goals given the Citys financial resiliency during the pandemic. This improved financial position has allowed the City to fund several operational needs and will allow the Citys financial position to remain stable barring any unforeseen economic downturns that are out of the Citys control.

Local Economic
Outlook
(v)
The City has a vision statement that affirms: The City of Santa Fe Springs is a great place to live, work and play, with the following mission statement: The City of Santa Fe Springs is committed to enhancing the quality of life of its residents and businesses by providing: a safe environment, a thriving business community, quality family, youth, and senior services, and sound financial management of the communitys resources. The guiding values are as follows:

Personal integrity, honesty, and ethics
Public service
Compassion
Responsibility, accessibility, and accountability
Dedication
Historically, the City has utilized a two-year operating budget during stable financial times and a six-year Capital Improvement Program CIP as some of the most significant planning tools to achieve the Citys vision and identified missions. The unprecedented events of recent years necessitated more swift and short-term actions. In moving past the Great Recession and the elimination of redevelopment, the City has begun to re-establish some of the above long-range planning tools along with strategic goals that will better guide the City into the future. This includes, as approved by the State, the ability to spend capital funding from previously-issued tax allocation bonds.

Public safety is the highest priority in the community. This is evidenced by the continued financial commitment provided to both Fire and Police Services. The Fire-Rescue and Police Services Departments continue to combine their manpower to provide the resources and tools to manage emergency and security issues that may arise in the community and region. The City continues to purchase specialized equipment with the use of grant funding. The following are some of the highlights by department:

Department of Fire- Rescue
The Department of Fire- Rescue is comprised of 57 members working from four fire stations providing not only the traditional services of fire suppression, hazardous materials response, fire prevention, and emergency medical services, but also a full-service Environmental Protection Division. The environmental protection and response components are considered model systems in the State of California. The Citys status as a Certified Unified Program Agency CUPA makes Santa Fe Springs a one-stop-shop in administering all the hazardous materials, hazardous waste, and tank programs in the City. The State has long held the Citys CUPA as one of the most regarded programs in the State. The CUPA Division utilizes the California Environmental Reporting System CERS allowing business residents to file their annual hazardous materials disclosures electronically. The Fire Prevention Division also provides many services, including code enforcement, plan checks, issuing permits, fire investigations, and public education events.

Accomplishments
& Outlook
Vision, Mission, and Guiding Values
(vi)
Fire-Rescue suppression personnel have implemented a business-friendly fire inspection program to annually inspect each business in the City to identify possible fire and life safety issues as well as update emergency contact information in the departments database. The Department of Fire Rescue conducted over 2200 business and residential inspections and responded to over 3,900 emergency calls in FY 2021-22.

The Department of Fire Rescue currently staffs a State Regional Urban Search and Rescue Team US&R designated at the highest level as a Heavy rescue team by the Office of Emergency Services OES . Fire-Rescue also staffs a Type I Hazardous Materials Response Team with all staff trained to the Haz-Mat Specialist level. The City is currently one of only thirty Hazardous Material Teams in the State certified as a Type I Response Team and qualified to mitigate emergencies involving acts of terrorism and weapons of mass destruction. The Department houses and maintains an OES Fire Engine for local and statewide disaster response. The Department continues to support neighboring communities through the California Master Mutual Aid Agreement in response to major disasters and emergencies including brush fires, landslides, earthquakes, acts of terrorism, major disasters, etc. In FY 2021-22, the Department of Fire-Rescue assisted outside of their jurisdiction 12 times to major fire incidents and was reimbursed over $1,200,000 in backfill expenses for labor and equipment to respond to these incidents.

The department, in partnership with Rio Hondo College, continues to manage the Regional Homeland Security Training Center located directly adjacent to the Headquarters Fire Station. This state of-the-art facility was built with grant funding for the purpose of assisting local fire and police agencies in increasing awareness and training regarding terrorist activity including building collapse, hazardous materials, rail car incidents, confined space, trench rescue, etc. The center has been recognized by the California State Training Institute CSTI as the primary training center for Hazardous Material Specialists Training in Southern California.

In FY 2021-22, the Fire-Rescue Department secured $419,000 through the 2019 State of Homeland Security Grant Program SHSGP . This funding supports the purchase of equipment and training for the Homeland Regional Training Center, the Citys Type I Hazardous Materials Response Team, and the Citys Urban Search and Rescue USAR Response Team. As in the past years, the use of grant funds has provided relief to the City budget as these vehicles, equipment, and training would typically have been funded through the Citys General Fund.

Accomplishments
& Outlook cont.
(vii)
Department of Police Services
Since October of 1995, the Department has partnered with the Whittier Police Department to deliver quality law enforcement services by combining Whittier Police Departments contract services with City personnel and management resources. The Santa Fe Springs Policing Team consists of City administrative personnel, Public Safety Officers, Code Enforcement Inspectors, Family & Youth Intervention staff and Whittier Police Department sworn personnel who focus on developing solutions to address community law enforcement issues and service needs. The team also places a strong emphasis on preventing youth from engaging in delinquent behavior and effectively maintains a safe and desirable and working environment for the City of Santa Fe Springs by addressing quality of life issues affecting the community.

Community-Police partnerships are essential in establishing trust, maintaining support and meeting the needs and expectations of our citizens. A proactive Community Oriented Policing approach continues to guide the department with the development and implementation of many unique and effective public safety programs and services.

During FY 2021-2022, the Department of Police Services continued to strive toward keeping crime and property loss rates at the lowest possible levels, maintain acceptable response times for emergency service calls, promote the use of technology, and enhance coordination between schools and the City. The policing team focused on enhancing community partnerships by providing a variety of programs, services and tools designed to deter and reduce crime, assist families with at-risk youth, and maintain the safety and well-being of all citizens within the community. Some of the Department efforts and accomplishments included:

Whittier Police Department Officers responded to 14,329 calls for service throughout the City and provided 1,546 pro-active patrols.

Additionally, a dedicated Traffic Enforcement Officer focused on traffic and pedestrian safety and field patrol officers responded to 3,106 traffic related incidents. Police officers also responded to several incidents involving Driving Under the Influence (DUI) offenses resulting in arrests and 37 citations were processed for cost recovery.

The Investigative Bureau made 7 arrests in 5 homicide cases that were investigated. The unit also partnered regularly with LA County District Attorney Investigators (Community Violence Reduction Team) to conduct sweeps and address violators who jeopardize the safety of the community.

Officers conducted 73 compliance searches in the City to address issues affecting public safety and quality of life issues
Accomplishments
& Outlook cont.
(viii)
The Special Enforcement Team made 36 arrests for violations including weapons, narcotics and outstanding warrants. The team also conducted compliance checks on sex registrants.

In an effort to increase traffic safety, the department focused on traffic enforcement operations and proactive traffic overtime enforcement.

Over 500 hours were dedicated to traffic enforcement details, which resulted in 741 citation being issued for hazardous violations such as distracted driving, unsafe speed, disobeying signage, red light violations and unsafe movements.

Traffic Officers also remained dedicated to monitoring high collision intersections. Enforcement efforts resulted in 742 citations for traffic violations observed during routine field patrol.

Public Safety Officers (PSOs) played a critical role in the departments field operations. PSOs responded to approximately 5,439 calls for service and provided 4,627pro-active patrols throughout the City. Calls for service included, but were not limited to parking violations, graffiti vandalism, safety hazards, non-criminal and criminal reports and other quality of life issue concerns. A total of 4,808 parking citations were issued.

PSOs responded to 128 traffic collision related incidents; leaving sworn personnel available to respond to emergent calls for service and reducing overall response times for priority calls.

Police response times to priority calls decreased by 22%, while response times to all calls for service reduced by 35%.

Enhancing community-partnerships by improving community relations was also a key area of focus. The department introduced Cookies & Photos with Santa, Trick-or-Treat at the Police Services Center, and hosted information booths at community and City special events.

The Bike Patrol Program was implemented. Public Safety Officers provided pro-active patrol on bicycles in residential neighborhoods, City facilities, and parks to improve citizen engagement and ensure a safe community.

The department continued to focus on crime prevention efforts and subscribe to Crimereports.com; providing citizens with access to up-to date city crime statistics.

The department partnered with Graffiti Tracker to aid with graffiti vandalism documentation and analytic services to help identify, track and prosecute graffiti vandals.

Automatic License Plate Reader Cameras were installed throughout the City. These cameras are part of the latest technologies to aid in crime prevention and the apprehension of criminals. The use of the devices enhances productivity, effectiveness and officer safety.

Additionally, security cameras were installed in select residential locations to help deter criminal activity and enhance neighborhood safety and security
Accomplishments
& Outlook cont.
(ix)
Technological upgrades to improve efficiency were also an area of focus including the purchase of drones. Drone technology has been a reliable law enforcement tool that remains beneficial to officer safety and aiding in criminal investigations.

The Family and Youth Intervention (FYIP) Team identified and worked with families experiencing relationship, behavioral challenges and youth engaging in delinquent behavior. Individual case plans were developed and services were coordinated. Additionally, 46 local families completed the Parent Project and 25 families completed the Loving Solutions Program.

The Department remained dedicated to providing drug awareness and prevention education through partnerships with local schools through the Red Ribbon Campaign. The FYIP team worked with City leaders and schools to promote the Red Ribbon Campaign by producing a Red Ribbon Campaign video shared via social media platforms and school district websites.

The annual Red Ribbon Campaign Art Contest was also conducted in October. Staff received hundreds of art entries from local students in grades pre-Kindergarten to High School.

The Every 15 Minutes Program was delivered via virtual format. In partnership with Santa Fe High School and the California Highway Patrol, a powerful message was delivered by the City Council and youth were reminded about the life changing consequences of drinking and driving and the impact of poor decision making. Funding for the program was provided by a $9,000 grant from the California Office of Traffic Safety, through the National Highway Traffic Safety Administration.

The department emphasized crime prevention and disaster preparedness through the Safe Neighborhood Team (SNT). Meetings were held bimonthly throughout the year. Residents came together to learn and discuss crime prevention tips and strategies, crime trends, disaster preparedness, and share their public safety concerns in a public forum. Additionally, the department hosted a Neighborhood Safety Community Meeting at Los Nietos Park.

SNT Community Block Parties were also held to bring community members together to get to know their neighbors and policing team in a relaxed environment.

As part of the departments emergency preparedness effort to raise awareness on the importance of having an emergency preparedness plan and practice safety during an earthquake, the Department led City staff as they participated in the Great Shake Out earthquake drill.

An emergency preparedness EOC exercise was also held to give staff an opportunity to learn more about the Citys EOC and better understand their role and gain hands on experience in developing a disaster response plan in the event of a disaster.

Accomplishments
& Outlook cont.
(x)
In an effort to enhance our Emergency Notification System (ENS), the Department entered into a partnership with Everbridge for ENS services and training. The systems enhanced capabilities will allow alerts to reach a larger portion of the residential and business community.

The Department partnered with the Southeast Area Animal Control Authority to host the annual Low-Cost Pet Vaccination. 188 animals were licensed, 305 received vaccinations and 26 pets were microchipped.

Administrative staff issued 16 regulatory permits for catering food truck operations.

Code Enforcement is another significant component of the Department of Police Services that is responsible for enforcing Santa Fe Springs Municipal codes related to residential and business property maintenance standards, including business licensing. Code Enforcement Inspectors also enforce building code violations, zoning violations, health and safety standards related to environmental protection and neighborhood preservation. The Division works closely with all City departments to ensure community needs are met.

Code Enforcement activity for FY 2021-2022, included 147 new code enforcement cases initiated to address numerous violations related to property maintenance concerns, illegal garage conversions, illegal structures, hazardous property conditions, illegal business operations, inoperable and abandoned vehicles, and illegal land use activity.

Additional Code Enforcement activity included:

Coordinated outreach and partnered with outside agencies to remove homeless encampments located on City property, Burlington Northern Santa Fe Railroad, Union Pacific Railroad, LA County Public Works, Caltrans and private properties. The team coordinated with these agencies and business owners to assist with several homeless encampment cleanups. Although, these homeless encampments were located on outside agency property, they ran through the Santa Fe Springs jurisdiction and negatively impacted the residential and business community.

Over 340 contacts were made with individuals experiencing homelessness.

Code Enforcement Inspectors investigated 198 complaints received from the public, conducted 465 residential and commercial inspections and 1,288 follow-ups in an effort to get properties into compliance.

Inspectors also issued 384 Notice of Violations and 136 Administrative Citations for various code violations.

Code Enforcement staff also remained dedicated to participating in ongoing training. Inspectors participated in over 166 hours of enforcement continued education and officer safety trainings.

Staff assisted the Fire Department with compliance inspections and addressing non-compliant businesses.

Accomplishments
& Outlook cont.
(xi)
Code Enforcement Staff processed 5 Alcohol Sales Conditional Use Permits and Compliance Reviews.

Staff also continued to work closely with the Planning Department to identity potential impacts and mitigate hazards of new and existing developments by developing conditions of approval to ensure safety and minimize negative impacts.

Department of Public Works
The Citys Department of Public Works is responsible for efficiently developing, constructing and maintaining the Citys infrastructure. The infrastructure consists of streets, facilities, parks, fleet, traffic signals and street lighting, and water distribution system. This encompasses routine and preventive maintenance items as well as responding to numerous citizen requests for service. The City prides itself in having a functional and wellmaintained infrastructure that the community can enjoy.

The Engineering Division is responsible for the administration of the Capital Improvement Program CIP , working closely with the Council CIP Subcommittee. In addition, traffic engineering and development review services are provided within the Engineering Division. In FY 2021-22, the Engineering Division issued approximately 300 total excavation and construction permits.

During FY 2021-22, the Department of Public Works coordinated a multitude of capital improvement projects including:

Facility Improvements
o Town Center Plaza Parking Lot
o Aquatic Center Roof Improvements
o Gus Velasco Neighborhood Center Playground Removal
o Gus Velasco Neighborhood Center Landscape Restoration Project o Bridge Lighting Upgrade at the Telegraph Road
o Clarke Estate Carpet Improvements, Betty Wilson Center Flooring and Painting Improvements
o Police Service Center Carpet Improvements
Park Improvements
o Horseshoe Pits Little Lake, Santa Fe Springs, & Los Nietos Parks o Interior/Exterior Painting Facilities Santa Fe Springs, Los Nietos, & Little Lake Parks
o Little Lake Park Bus Stop Improvements
o New Cabinets at SFS Park Recreation Building
o New Outdoor Fitness Court at Los Nietos Park
o Heritage Park Train Exhibit Improvements Paint -Engine and Caboose
o Heritage Park Train Exhibit Improvements Box Car Rehabilitation Accomplishments
& Outlook cont.
(xii)
Street Improvements
o Florence Avenue Bridge over I-5 Freeway Widening Project Street Light Improvements
o LED Residential Street Light Conversion SCE Owned Street Lights Department of Planning and Development
The Planning and Development Department provides staff support to the City Planning Commission, Housing Successor, Successor Agency, and the City Council, and other development related activities. The Planning and Development Department is responsible for the following divisions: Planning both current and long-range planning ; Building & Safety managing the plan check process, issuing permits, and conducting inspections ; Economic Development creating, retaining, attracting and expanding the business community and Housing improving the quality of our neighborhoods and providing affordable housing options and the managing and disposing of the assets of the former redevelopment agency . The role of the department is to foster public involvement and creativity and assist decision makers and the public in formulating and implementing policies, which balance environmental, economic and social needs for the present, and future. The department is committed to playing a prominent role in shaping the community through high-quality standards citywide to preserve and cultivate smart and sustainable growth of the Citys residential, commercial, and industrial areas. Through the regulation of land use and development, the Department of Planning and Development continually strives to protect and enhance the Citys environment and quality of life, resulting in a diverse and livable community where residents, businesses, and visitors can thrive.

Planning Activities during FY 2021-2022
1 Total number of entitlements processed:
o Discretionary entitlements: 57 total.
o Administrative entitlements: 20 total . 2 Advance Planning projects completed:
o Ordinance No. 1118 Relating to Billboards along the Interstate 605.
o Ordinance No, 1122 Relating to Water-pumping and treatment plants within the M-2 zone.
o Adopted the 2040 Santa Fe Springs General Plan on February 8, 2022.
3 Total number of plan checks completed:
o 434 total.
4 Total number of Zone Certification Letters prepared:
o 68 total.

Accomplishments
& Outlook cont.
(xiii)
5 Various miscellaneous permits processed:
o 5 Office Trailer Permits.
o 4 Home Occupation Permits.
o 6 Preliminary Application Reviews.
o 2 Banner Permits.
6 Total number of individuals assisted at the counter:
o 797 total.

Building Activities during FY 2021-2022
1 Total permits issued:
o 969 total
450 building permits
274 electrical permits
112 mechanical permits
110 plumbing permits
14 sewer permits
9 grading permits
2 Overall valuation of permits issued:
o $180,761,835 total
o It should be noted that the Electrical, Mechanical, Plumbing and Grading permits do not have a valuation.
3 Total number of individuals assisted at the counter:
o 522 total increase of 489 or 1,581% from FY 2020-2021 . Economic Development Activities during FY 2021-22 1 A new Economic Development Element and Economic Development Implementation Plan were adopted as part of the 2040 Santa Fe Springs General Plan.
2 Approved entitlements for a new Chick-Fil-A drive-thru restaurant at 13225 Telegraph Road.
3 The Exclusive Negotiating Agreement ENA was extended for Parcel 1 Sculpture Garden Site
o Proposed project by Westland to developed 10 2,500sf units, 5 100sf kiosks, outdoor dining, and an entertainment stage. The Project will be the catalyst for a new Downtown Santa Fe Springs.

Housing Activities during FY 2021-2022
1 The 2021-2029 Housing Element was adopted as part of the 2040 Santa Fe Springs General Plan.
o The Housing Element was submitted to the California Department of Housing and Community Development HCD . o The City received a findings letter from HCD and is working with our consultant to make final changes and bring the Citys housing element into compliance with Article 10.6 of the Government Code. 2 Approved entitlements for a new 54-unit condominium project Aspire by Melia Homes at 11733 Florence Avenue. Construction activities are currently underway.

Accomplishments
& Outlook cont.
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3 Approved entitlements for a new 101-unit affordable housing project The Richman Group and 19-units of transitional/supportive housing The Whole Child at 13231 Lakeland Road.
4 Approved entitlements for a new 44-unit Single Room Occupancy SRO affordable housing project Primestor at 11350 Washington Boulevard. 5 Accessory Dwelling Units ADUs reviewed and approved: 24 total.

Upcoming Activities
In addition to what is listed above, staff is in the intermediate stages of completing the following projects:
1) Targeted Zoning Code Update
2) Creating ADU Guidelines;
3) Adopting a new Transportation Study Guidelines; and
Creating Objective Design Standards for multi-family residential developments.

Department of Community Services
The Department of Community Services includes the following Divisions: 1 Administration; 2 Parks and Recreation Services PRS ; 3 Library and Cultural Services LCS ; 4 Family and Human Services FHS . It is one of the City departments that has the most direct impact to the residents of Santa Fe Springs. Programs and services are available to City residents, as well as business residents. These programs and services range from social, recreational, and cultural services. During Fiscal Year 2021/2022, the Department of Community Services achieved several significant accomplishments.

The following include a variety of in-person and virtual program accomplishments:

Due to the ongoing COVID-19 pandemic and health and safety guidelines, a hybrid of virtual and in-person classes were offered in Fiscal Year 2021/2022. 126 classes were offered ranging from toddler classes, language classes, fitness classes, music lessons, sports, and many more. In total, 695 participants joined PRS classes.

Youth Sports leagues and clinics were offered in basketball, soccer, flag football, boxing and pee wee sports with a total of 829 participants.

The Adult Sports Program offered year-round basketball, volleyball and softball leagues. A total of 135 teams, which included an estimated 1,350 participants, registered for these programs.

The Aquatics Program returned to full operation in the summer of 2021, and included group and private swim lessons, recreational swim, lap swim and rentals. In total, there were 957 participants. In the Accomplishments
& Outlook cont.
(xv)
summer of 2022, the Aquatic Center was closed due to renovations, and trips were scheduled to the beach and neighboring aquatic centers. 64 participants attended these trips.

The Day Camp program operated in the summer of 2021 as a distanced program due to the on-going COVID-19 pandemic, and made a return to normal operation in the summer of 2022. Camps offered included Spring Camp, Summer Camp, Fall Camp, and a special 1-day Grinchmas themed camp. There were a total of 419 participants in the Day Camp Program.

The Excursions Program returned in spring of 2022 for the first time since the beginning of the COVID-19 pandemic. Excursions included trips to the Anaheim Angels game, Hollywood Sight Seeing, and the USS Iowa. A total of 60 participants attended these trips.

The 2021 Independence Day event was the first in-person special event since the beginning of the COVID-19 pandemic. While various municipalities in the County did not host an event due to the restrictions imposed by the Countys health protocols, Santa Fe Springs was able to successfully deliver an event and fireworks display. Due to the Countys COVID-19 protocols, capacity was limited to 1,500 attendees.

The Fiestas Patrias event was held on Friday, September 10, 2021 at Los Nietos Park. The event featured dance performances, a reenactment of El Grito, and a live performance by legendary Latin group, La Sonora Dinamita. Over 2,500 people attended.

The Community Services Department hosted the annual Walk to School Day event on Wednesday, October 6, 2021. Five elementary schools from Little Lake City School District and Los Nietos School District participated. Walk to School Day is a global event participated in by over 40 countries around the world. It is estimated that 400 students participated in this program.

The annual Halloween Carnival was held in-person at Los Nietos Park on Sunday, October 31, 2021 and included game booths for kids, an inflatable zone, and a costume parade. It is estimated 1,500 community members attended the event.

The annual Tree Lighting Ceremony returned to an in-person event and was held on Saturday, December 4, 2021 at Town Center Plaza. The event featured a snow sledding area, pictures with Santa, food vendors, a holiday boutique, hot cocoa and cookies, and a train ride through Clarke Estate. There was also live musical performances by our local schools. An estimated 1,300 people attended.

Accomplishments
& Outlook cont.
(xvi)
In its 41st year, the Santa Float Program made its return to traditional form. During the two week period, the Float made 24 stops throughout Santa Fe Springs and 15 Home Visits. During the second night of stops, the Float had a special visit from one of the pioneers of the Santa Float, Parks and Recreation Advisory Committee Member and Planning Commissioner Ken Arnold and the Arnold family. It is estimated over 5,000 people visited Santa. 76 volunteers helped ensure the success of the program, and to acknowledge their support, a special volunteer recognition dinner was held on January 26, 2021.

The Holiday Home Decorating Contest returned in 2021 and resulted in the most entries received in the past 10 years with 27 entries.

In an effort to get community members ready for the Shamrock 5K Fun Run/Walk, the Parks and Recreation Division launched a 5K training program on Sunday, January 23, 2022. The Couch to 5K training program was a five week interval training program designed for beginner and intermediate levels. 27 participants registered for this program.

The annual 5K Fun Run/Walk & Toddler ¼ Dash was held on Saturday, March 12, 2022. 515 runners registered for this program.

The Community Services Department held a ribbon cutting for its newest park amenity, the Fitness Court at Los Nietos Park. The Fitness Court is an innovative outdoor bodyweight circuit training center designed to provide a full body workout in only seven minutes.

Equipment usage is free and park visitors can also download the free Fitness Court App a coach-in-your-pocket style platform that transforms the gym into a digitally supported wellness ecosystem.

Due to a rise in COVID-19 transmission, the Penny Carnival was again held online and drew 18 people to virtual trivia games and activities.

The virtual trivia games and activities included American Trivia, Wheel of Fortune, Bingo, and Jeopardy.

The Teens Empowered and Engaged in Neighborhood Services Program T.E.E.N.S. hosted a Community Garden cleanup event. There were over 100 volunteers from the Santa Fe High Eco Club, Santa Fe High Baseball team, Cal High Eco Club, our T.E.E.N.S. program, Starbucks, and the Youth Leadership Committee.

Approximately 449 middle and high school students participated in our T.E.E.N.S. Program, which offered offered bi-weekly meetings that included holiday-themed games, trivia, and educational workshops.

Accomplishments
& Outlook cont.
(xvii)
A new event Chalk It Out! in which local youth were invited to create sidewalk chalk art, was held on Saturday, April 2, 2022 at Town Center Plaza. Recognizing that youth have been through a tough time, physically and emotionally due to the pandemic, a focus on mental health wellness is necessary for the youth community. Chalk art is a form of art expression that can provide youth an overall better mental health and a sense of comfort. Approximately 78 youth participated in the event.

After a two year hiatus, Parks and Recreation Services hosted the Easter Eggstravaganza Event on Saturday, April 16, 2022 at Los Nietos Park.

Staff stuffed approximately 10,000 eggs for the egg hunt and it is estimated that 1,500 people attended.

The Library resumed in-person programming in September 2021. In addition to Preschool and bilingual Storytimes, we offered the following special programs:
o First Friday Our award-winning First Friday program resumed on April 1 with the Korean Classical Music and Dance Company.

In June, we presented the Sakai Flamenco dancers.
o Afternoon Tea The event was hosted in April and focused on the rich history of Santa Fe Springs. Speaker Jaque Nunez highlighted Native American history, while attendees enjoyed a full three course tea service.
o Battle of the Books Literacy Services hosted a Battle with students from Rancho Santa Gertrudes Elementary School. o Author Day Literacy Services invited students for a pizza lunch and to meet author Rex Ogle, who read an excerpt from his book . o Animal Sleepover 27 children befriended a new stuffed animal and then left them in the Library to spend the night. The children watched their new friends on social media as they played throughout the Library.
o STEAM Power Aimed at elementary school age children, this new program explores science, technology, engineering, art, and math concepts through experiments and art activities.
o Dia de los Niños The Library received a $500 grant to provide a Dia de los Niños program for children. This special bilingual program featured crafts, activities, and bilingual book giveaway.

Accomplishments
& Outlook cont.
(xviii)
In Fiscal Year 2020/21, the Library reclassified its Administrative Clerk II position to Librarian II Technical Services. This professional position oversees all technology functions, including the administration of the Librarys public access computers, integrated Library system and all STEAM programming.

The Library upgraded its public copier and began offering WI-FI printing. Patrons can now print in black and white or color from the Librarys computers or their personal devices.

The Library began a new book group, Murder Ink. This group of truecrime book lovers meet monthly via Zoom. This brings the total of book clubs offered to six.

The Library was awarded $2,000 from the California State Library to implement the ZIP Books program. This program allows the library to fulfill physical book and audio book requests from patrons by purchasing the items from Amazon and sending them directly to the patron.

The Library was awarded a grant of $30,000 from the California State Library to transform the William C. Gordon Learning Center at Gus Velasco Neighborhood Center from a small circulating library with a few computers into a TechLab for Seniors. This new lab has 13 new computers, new computer furniture and equipment selected with senior needs in mind, a new printer and a new large TV monitor to facilitate computer classes. Scheduled to open in September 2022, lab users will be assisted by tech-savvy Library staff who can help seniors with lab computers and also assist with seniors personal devices.

The Library has been pre-approved by the U.S. State Department to offer Passport Acceptance service. Individuals will be able to come to the Library to submit their application and documentation to receive a passport. We anticipate offering this in-demand service starting October 2022.

The 2022 Summer Concert and Movie Series consisted of 5 concerts and 3 movie nights. It included the participation of the Abigail Barraza Foundation as well as the Police Services Department that hosted National Night Out. The final concert featured Mariachi Las Colibri. In total, the series had approximately 4,500-5,000 attendees across all 8 event dates with movies averaging 150-300 guests per event and concerts averaging 500-800 per event.

The 2021 Día De Los Muertos event returned to an in-person event on Saturday, October 16th at Heritage Park. Approximately 1,200 guests visited the event, which offered food vendors, sugar skull crafts for kids, Accomplishments
& Outlook cont.
(xix)
artisan items for sale, and a community ofrenda showcase. The live entertainment consisted of several dance groups, as well as a performance by Grammy Award-winning Mariachi Divas. A total 153 sugar skulls were sold to community members, and another 80 skulls were donated to the Gus Velasco Neighborhood Center GVNC for distribution to older adults, bringing the total to 233 skulls distributed.

The annual Las Posadas was held Friday, December 10th. The event hosted the tradition of participants gathering at the north end of Heritage Park where they are led along the walkway knocking on three doors seeking shelter. Approximately 400 participants took part in the procession led by Mary and Joseph and a group of Mariachi singing Pidiendo Posada asking for shelter at each stop along the way. The event concluded with colorful folkloric dancers, Mariachi entertainment, crafts and an opportunity to see Santa Claus.

After a two year hiatus, the Department of Community Services hosted its annual SFS Art Fest on Friday, May 6, 2022 at Clarke Estate. The event featured 112 artists exhibiting over 300 art pieces, as well as art vendors, non-profit organizations, entertainment, and food vendors.

There were 2,500 participants throughout the entire evening with 1,100 of those participants being present at approximately 7:30 p.m.

The Preview & Showcase Night was held on Thursday, May 5th with about 450 business and community residents enjoying an art mixer.

The annual Pioneer Living Day returned to an in-person event on June 4th, and provided families and children an opportunity to go back in time to the early days of the pioneers. Approximately 200 participants enjoyed games, interactive experiences like panning for gold and arrowhead making, live demonstrations like blacksmithing and rope making, as well as crafts through the decades to celebrate the history of fun.

Approximately 109 Santa Fe Springs Older Adult residents renewed their gym membership since the reopening of the Gus Velasco Neighborhood Center GVNC in March 2022.

In July 2021, two outdoor exercise programs were reinstated. Movin' and Groovin', held at Los Nietos Park on Mondays and Wednesdays, had an attendance of 35 Older Adults. City Strollers, which was held at Heritage Park, had 16 participants who walked laps through park. Each month from June through August, the walker with the most laps received a $30 gift card to Sketchers, donated by TEAM UPMedical/Medicare representatives that frequent our senior activities.

Following the reopening of the GVNC in February, 2022, 17 new and returning classes have been implemented.

Accomplishments
& Outlook cont.
(xx)
During the GVNC closure, the Senior Buzz publication was mailed out every two months to 258 Santa Fe Springs Older Adults. The Buzz contains information on program updates, upcoming events, Coronavirus tips, puzzles, word searches, and healthy recipes, to mention a few. The Senior Buzz continues to be distributed at the GVNC since re-opening.

Community Services Department, in partnership with the Rotary Club, provided a modified drive-through event where backpacks filled with school supplies were provided to 115 Santa Fe Springs children. Over $9,000 was received in monetary donations from City businesses and school supplies from individuals and companies.

The annual Volunteer Income Tax Assistance Program began in February 2022, and continued in a modified drop off format to help reduce the spread of COVID-19. A total of 300 tax returns were completed.

Community Services Department continued to partner with the Southeast Area Social Services Funding Authority SASSFA to serve hot meals to seniors. During the GVNC closure, SASSFA continued to prep 796 frozen meals per month for homebound and congregate meal seniors in the city and surrounding communities. SASFFAs homebound meals increased to 96 meals 45 homebound and 51 congregate per day and were home delivered to all registered participants. Since its return on May 23, 2022 to in-person service, an average of 30 meals are served daily in the congregate meal program and 45 meals continue to be delivered daily to homebound seniors.

The Thankful Neighbor Holiday Basket program provided Thanksgiving Baskets to 115 low-income families and older adult residents. $50 Northgate gift cards were also provided.

The Neighborly Elf Program provided 126 holiday food baskets to lowincome families and older adult residents. In addition, gift cards were provided to families:
o Children ages 10 and under received a $15.00 gift card o Youth ages 11-18 received a $25.00 gift card
In 2021-2022, Human Services Caseworkers provided assistance in completing forms to 221 individuals. The majority of the form assistance is provided to older adults in need of accessing or maintaining affordable housing, or government assistance to pay for needed services.

The Human Services Caseworkers coordinated with numerous partners from local government and non-profit agencies to secure food, Accomplishments
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(xxi)
supervision, income, medical care, and housing for a disabled adult, whose caregivers died of COVID-19 and left him without food or income.

Human Services Case Workers responded to 144 inquiries for affordable housing, which is becoming increasingly in demand. Most of those who called are older adults and families who are homeless or atrisk of homelessness.

Community Services Department sponsored 10 Santa Fe Springs children to attend a sleep away camp in partnership with Woodcraft Rangers.

In partnership with Spiritt Family Services, the Family and Human Services Division hosted an in-person workshop, Healthy Children, Healthy Families, which provided families with strategies to prevent child abuse & neglect and strengthen their familys protective factors to promote healthy families and communities.

Family and Human Services continues to partner with United Way, Southern California Edison and So Cal Gas to provide utility assistance to low-income families at risk of having their utilities disconnected.

Through this partnership, the Division processed 295 applications, totaling $27,361 in utility assistance grants during FY 2021/2022. Case workers fielded 782 phone calls that were attributed to this program alone.

Through the Family and Human Services Funds FHS , the City provided $1,579.89 in water utility assistance and $480 in sponsorships to Santa Fe Springs residents experiencing financial hardship. The total amount of FHS funds used for direct client assistance was $2,059.89.

As Certified Application Counselors under Covered California, Case Workers provided enrollment in affordable health care to 20 uninsured families and individuals. They also provided information and education about Covered California to 53 individuals and families.

The Family & Human Services Division continues to partner with United Way and Southern California Edison to provide utility assistance to lowincome families. Through this partnership and funding, and overcoming the challenges of servicing virtually, by phone or email, the Division processed 214 applications totaling to $33,593.36 in utility assistance grants during FY 2021/2022.

Gus Kitchen Food Pantry and Community Closet located at the Gus Velasco Neighborhood Center was used by 144 clients, who were able to obtain food, clothing, and hygiene products. In addition, during the Accomplishments
& Outlook cont.
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Safer at Home order, items from Gus Kitchen were donated to the local school districts and food banks.

City Manager
The City Manager is responsible for carrying out the policies and directives of the Council, for overseeing the Citys daily operations, maintain the city budget and represent the municipality in a variety of settings, and supervise City departments. Additionally, the City Managers Office also researches issues important to the city and advises the mayor and council on the best course of action.

Department of Finance and Administrative Services
The Department of Finance and Administrative Services is responsible for various different areas, including managing and safeguarding financial resources in accordance with specific principles and practices, administering information technology and risk management functions, as well as the Citys Human Resources function. In addition to receiving the Government Finance Officers Associations GFOA Certificate of Achievement for Excellence in Financial Reporting again this year and over the last several decades, the department embarked on several initiatives this fiscal year.

The department is now in the third year of implementing the financial module of the new Enterprise Resource Planning ERP system. The department is planning to implement the payroll module next year.

During Fiscal Year 2021 through 2022, the Citys operations were impacted by the pandemic. However, the City experienced little to no effect on revenue stream, and in fact, experienced greater than anticipated Sales Tax and Transaction Tax revenues
The City continued taking a number of steps to better position its long-term financial standing. City employees are paying their full share of City pension costs. This, coupled with tiered benefits providing future City employees with a reduced set of benefits and a greater share of the costs, will substantially help the Citys future fiscal standing. In conjunction with subsequent pension reform earmarked changes adopted by the State, the effect should be the stabilization of employee costs.

The City continues to prefund Other Postemployment Benefits OPEBs through CalPERS California Employers Retiree Benefit Trust Fund CERBT . It recognizes the benefit of prefunding through a trust rather than using the pay as you go method.

Debt
Administration
Long-Term
Financial Planning
Accomplishments
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(xxiii)
The City established California Employers Pension Prefunding Trust CEPPT on June 2021. This is a special trust fund for the purpose of allowing City to prefund the required pension contributions to a defined benefit pension plan by receiving and holding in the CEPPT amounts that are intended to be contributed to the Pension Plan at a later date.

Over the course of the next year, staff will be looking to further develop and formalize more long-term financial planning models. They should help provide a framework that helps identify future trends.

At June 30, 2022, the City of Santa Fe Springs oversaw six outstanding bond issues comprised of: three Consolidated Redevelopment Project tax allocation bond issues, two City water revenue bond issues, and one special assessment district bond.

The City works closely with public financial professionals to monitor opportunities to effectively administer the outstanding debt in a fluid public finance market. More detailed information about the debt is contained in the Managements Discussion and Analysis and in the Notes to Financial Statements.

We would like to extend our appreciation to the City Council, the City Council Audit Subcommittee, and City departments for their cooperation and support in planning and conducting the financial operations of the City during the past fiscal year. Specifically, we would like to thank the Department of Finance & Administrative Services for their consistent dedication and hard work.

Thomas R. Hatch
Interim City Manager
Travis Hickey Director of Finance and Administrative Services Acknowledgements
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INDEPENDENT AUDITORS REPORT
Honorable Mayor and Members of the City Council
City of Santa Fe Springs
Santa Fe Springs, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the businesstype activities, each major fund, and the aggregate remaining fund information of the City of Santa Fe Springs (the City), as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the Citys basic financial statements as listed in the table of contents.

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2022, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

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

Change in Accounting Principle
As described in Note 1 to the financial statements, effective July 1, 2021, the City adopted new accounting guidance, GASB No. 87, Leases. Our opinions are not modified with respect to this matter.

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

CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer.

CliftonLarsonAllen LLP
CLAconnect.com
Honorable Mayor and Members of the City Council
City of Santa Fe Springs
(2)
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 Citys 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.

Auditors 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 auditors report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

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

In performing an audit in accordance with GAAS 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 Citys 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 Citys 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.

Honorable Mayor and Members of the City Council
City of Santa Fe Springs
(3)
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the managements discussion and analysis, the budgetary comparison schedules for the General Fund and Low and Moderate Income Housing Assets Fund, the schedules of changes in the net pension liability and related ratios for the agent multiple-employer miscellaneous plan, the schedule of plan contributions for the agent multiple-employer miscellaneous plan, the schedule of proportionate share of the net pension liability for the cost sharing safety plan, the schedule of plan contributions for the cost sharing safety plan, the schedule of changes in the net OPEB liability and related ratios, and the schedule of contributions for OPEB, 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 GAAS, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with managements 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 Citys basic financial statements. The combining and individual nonmajor fund financial statements and budgetary comparison schedules are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with GAAS. In our opinion, the combining and individual nonmajor fund financial statements and budgetary comparison schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole.

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

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

Honorable Mayor and Members of the City Council
City of Santa Fe Springs
(4)
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated February 23, 2023, on our consideration of the Citys 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 Citys 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 Citys internal control over financial reporting and compliance.

CliftonLarsonAllen LLP
Irvine, California
February 23, 2023

CITY OF SANTA FE SPRINGS
MANAGEMENTS DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2022
(5)
This is managements discussion and analysis (MD&A) of the financial performance of the City of Santa Fe Springs (City) for the fiscal year ended June 30, 2022. This should be read in conjunction with the transmittal letter that can be found in the introductory section of this report and with the Citys financial statements, which follow this discussion.

Financial Highlights
The Citys total net position increased over the course of the fiscal year by $21.6 million to $176.3 million. The governmental net position increased by $19.20 million or 14.2%, while the businesstype net position increased by $2.4 million or 13.0%.

The general fund, on the current financial resources basis, reported an increase in fund balance of $8.0 million to $68.3 million. Excluding transfers and other financing sources/uses, the general fund reported $16.6 million excess of revenues over expenditures. Revenues increased by $8.2 million or 10.6% and expenditures increased by $3.6 million or 5.5% when compared to prior year.

Increase in revenues was primarily due to increase in revenues provided by sales, use, and transaction taxes and charges for services, this was partially offset by the decrease in interest and rentals income. Increases in expenditures were mainly due to rising costs related to the City of Whittiers Police Services contract.

At the close of the fiscal year, unassigned fund balance for the general fund was $28,046,008 or

35.4% of total general fund expenditures and transfers.

Overview of the Financial Statements
This annual report consists of several parts: an introductory section, managements discussion and analysis, the basic financial statements, required supplementary information, supplementary information and a statistical section. The basic financial statements include two kinds of statements that present different views of the City: government-wide financial statements and fund financial statements.

Government-wide Financial Statements
The government-wide financial statements provide both short and long-term information about the Citys overall financial status in a manner similar to a private sector business.

The statement of net position presents information on all of the Citys assets and deferred outflows, and liabilities and deferred inflows, with the difference between the two reported as net position. In time, increases or decreases in net position may serve as a useful indicator of whether the financial condition of the City is improving or deteriorating.

The statement of activities presents information on how the Citys net position changed during the fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods.

CITY OF SANTA FE SPRINGS
MANAGEMENTS DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2022
(6)
The governmental activities of the City include general government, public safety, community development, public works, culture and leisure, human services and Interest on Long-Term debt. The Citys Water Utility operates as a proprietary fund and is reported as the Citys only business-type activity in the government-wide statements.

Fund Financial Statements
A fund is a group of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. Fund financial statements focus on individual parts of the City government, reporting the Citys operations in more detail than the government-wide statements.

Governmental funds statements tell how general government services such as public works, community services, police and fire were financed in the short term, as well as what remains for future spending. Because this information does not encompass the additional long-term focus of the government-wide statements, reconciliations that explain the relationship (or differences) between governmental funds and governmental activities follow each of the governmental funds statements.

Proprietary fund statements offer short and long-term financial information about the Citys Water Utility Enterprise fund and internal service funds.

Fiduciary funds statements provide information about the financial relationships in which the City acts solely in a trustee or custodial capacity for the benefit of others, to whom the resources belong. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the Citys own programs.

The financial statements also include notes that explain some of the information in the financial statements and provide more detailed data. The statements are followed by certain required supplementary information concerning the Citys budgetary comparison schedules for its general fund and the Citys pension and other post-employment benefits obligation to its employees. In addition to these required elements, we have included supplementary statements and schedules that provide details about the Citys non-major governmental funds.

Financial Analysis of the Government-wide Statements
The government-wide financial statements provide short and long-term information about the Citys overall financial condition. This analysis addresses the financial statements of the City as a whole.

The statement of net position includes all of the Citys assets and deferred outflows, and liabilities and deferred inflows. All current year revenues and expenses are reported in the statement of activities, regardless of when cash is received or paid.

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

CITY OF SANTA FE SPRINGS
MANAGEMENTS DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2022
(7)
Total
Percent
Change
2021 2022 2021 2022 2021 2022
Current and other assets $ 124.9 $ 166.9 $ 15.5 $ 17.5 $ 140.4 $ 184.4 31.3% Capital assets, net 167.7 165.9 26.3 25.6 194.0 191.5 -1.3% Total assets 292.6 332.8 41.8 43.1 334.4 375.9 12.4%
Deferred outflows 22.8 24.1 1.5 1.5 24.3 25.6 5.3%
Long-term liabilities 165.2 125.0 20.8 17.9 186.0 142.9 -23.2% Other liabilities 7.7 12.1 2.7 2.6 10.4 14.7 41.3%
Total liabilities 172.9 137.1 23.5 20.5 196.4 157.6 -19.8% Deferred inflows 7.1 65.2 0.5 2.4 7.6 67.6 789.5%
Net position
162.3 163.1 19.1 18.6 182.2 180.9 -0.7%
Restricted 30.9 32.3 - - 30.9 32.3 4.5%
Unrestricted (58.6) (40.0) 0.2 3.1 (58.4) (36.9) -36.8% $ 135.4 $ 154.6 $ 19.3 $ 21.7 $ 154.7 $ 176.3 14.0%
Net investment in
capital assets
Governmental type
Activities Activities Total
City of Santa Fe Springs
Summary of Net Position
June 30, 2021 and 2022
(in millions)
BusinessAs noted earlier, net position may serve over time as a useful indicator of a governments financial position. In the case of the City of Santa Fe Springs, assets and deferred outflows exceed liabilities and deferred inflows by $176.3 million at the close of the fiscal year. The largest portion of the Citys net position 102.6%, is invested in capital assets, net of related debt. Approximately (20.9 %) of the Citys net position is unrestricted. Unrestricted net position is at a deficit of $36.9 million, a decrease of $21.5 million from the prior year. An additional portion of the Citys net position, $32.3 million, represents resources that are subject to external restrictions on how they may be used.

During the fiscal year, the Citys ending net position increased by $21.6 million, when compared to the prior year, revenues increased by $6.9 million to $108.2 million. Expenses increased by $2.9 million to $86.6 million. Total revenues outpaced total expenses primarily due to increase in sales, use, and transaction taxes and charges for services program revenues.

CITY OF SANTA FE SPRINGS
MANAGEMENTS DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2022
(8)
Total
Percentage
Change
2021 2022 2021 2022 2021 2022
Revenues
Program revenues:

Charges for services $ 9.5 $ 11.6 $ 14.4 $ 15.6 $ 23.9 $ 27.2 13.8%

6.2 5.7 - 0.1 5.7 6.3 10.5%

0.6 3.3 - - 3.3 0.6 -81.8%
General revenues:

Sales and use taxes 32.3 39.5 - - 32.3 39.5 22.3%
Transaction and use taxes 13.7 15.7 - - 13.7 15.7 14.6% Property taxes 6.0 5.7 - - 6.0 5.7 -5.0%
Franchise taxes 3.5 3.8 - - 3.5 3.8 8.6%
Motor vehicle in lieu 2.3 2.3 - - 2.3 2.3 0.0%
Business operations taxes 0.8 0.8 - - 0.8 0.8 0.0%
Utility users taxes 6.9 7.8 - - 6.9 7.8 13.0%
Other taxes 0.2 0.2 - - 0.2 0.2 0.0%
Investment income 1.3 (3.0) 0.2 0.1 1.5 (2.9) -293.3%
Other 1.1 1.1 0.1 0.1 1.2 1.2 0.0%
Total revenues 86.6 92.3 14.7 15.9 101.3 108.2 6.8%
Expenses
Governmental activities:

General government 8.5 7.6 - - 8.5 7.6 -10.6%
Public safety 35.2 40.5 - - 35.2 40.5 15.1%
Community development 2.7 2.7 - - 2.7 2.7 0.0%
Public works 16.8 16.3 - - 16.8 16.3 -3.0%
Culture and leisure 5.5 5.5 - - 5.5 5.5 0.0%
Human services 1.6 1.6 - - 1.6 1.6 0.0%
Interest on long-term debt 0.1 0.1 - - 0.1 0.1 0.0%
Business-type activities:

Water - - 13.3 12.3 13.3 12.3 -7.5%
Total expenses 70.4 74.3 13.3 12.3 83.7 86.6 3.5%
Excess (deficiency) before transfers 16.2 18.0 1.4 3.6 17.6 21.6 22.7% Transfers 1.2 1.2 (1.2) (1.2) - - Increase (decrease) in net position 19.2 17.4 0.2 2.4 17.6 21.6 22.7% Net position - beginning 118.0 135.4 19.1 19.3 137.1 154.7 12.8% Net position - ending $ 135.4 $ 154.6 $ 19.3 $ 21.7 $ 154.7 $ 176.3 14.0% Activities Activities Government
Operating grants and contributions
Capital grants and contributions
Changes in Net Position
For the Fiscal Years Ended June 30, 2021 and 2022
(in millions)
Total
Governmental Business-type Primary
The Citys total revenues were $108.2 million for the fiscal year ended June 30, 2022. Revenues from governmental activity totaled $92.3 million and revenues from business-type activities totaled $15.9 million. Program revenues comprise 31.5% of total revenues with the largest portion of this, $27.2 million, resulting from charges for services. Sales, use, and transaction taxes comprise 51.0% of total revenues and other general revenues comprise the remaining 17.5%. Total revenues increased by

6.8%, primarily due to increase in program charges for services, sales, use, and transaction taxes during the fiscal year.

Charges for services includes culture and leisure programs, and facilities rentals. Increased in charges for services due to an increase in the demand to use citys programs and services.

The Stay-at-home orders during fiscal year 2021-22 generated greater than anticipated online sales which resulted in the Citys increased sales, use, and transaction taxes.

Some of the increases were partially offset by the decrease in investment incomes.

CITY OF SANTA FE SPRINGS
MANAGEMENTS DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2022
(9)
Expenses of the City for the year totaled $86.6 million. Governmental activity expenses totaled $74.3 million, or 85.8% of total expenses. The following table summarizes the total cost and net cost of the Citys governmental activities by function type.

Percentage Percentage
Change Change
2021 2022 2021 2022
General government $ 8.5 $ 7.6 -10.6% $ 3.1 $ 1.8 -41.9% Public safety 35.2 40.5 15.1% 31.4 35.8 14.0%
Community development 2.7 2.7 0.0% 0.9 0.4 -55.6%
Public works 16.8 16.3 -3.0% 9.8 11.8 20.4%
Culture and leisure 5.5 5.5 0.0% 5.0 4.4 -12.0%
Human services 1.6 1.6 0.0% 1.6 1.6 0.0%
Interest on long-term debt 0.1 0.1 0.0% 0.1 0.1 0.0%
Total $ 70.4 $ 74.3 5.5% $ 51.9 $ 55.9 7.7%
Net Cost of Governmental Activities
(in millions)
Total Cost Net Cost
of Services of Services
Business-type Activities
Program revenues of the Citys only business-type activity, the Water Utility, totaled $15.7 million, and investment and other income totaled an additional $0.2 million. Expenses of the Water Utility were $12.3 million. Water rates include a factor to provide for a modest annual water infrastructure replacement program. Income before transfers was $3.6 million. Transfers out totaled $1.2 million. This amount was transferred to the Citys general fund for use of the Citys rights of way and maintenance of the Citys extensive infrastructure. The cost of capital improvements is reported in the statement of net position, rather than as expenses in the statement of activities. Capital assets of $25.6 million (net of accumulated depreciation) decreased by approximately $0.7 million.

Financial Analysis of the Fund Statements
The City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. The fund financial statements focus on individual parts of City government, reporting the Citys operations in more detail than the government-wide statements.

The Citys governmental funds provide information on near-term inflows, outflows and the balance of available resources. The Citys governmental funds reported combined fund balances at June 30, 2022, of $134.6 million, an increase of approximately $21.6 million from the previous fiscal year. The primary reason for the increase was due to revenues exceeding expenditures in the General Fund resulting from increase in sales, use, and transaction taxes and charges for services program incomes.

CITY OF SANTA FE SPRINGS
MANAGEMENTS DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2022
(10)
The General Fund is the chief operating fund of the City. At June 30, 2022, the General Funds unassigned fund balance was $28.0 million. Additional General Fund balances were: nonspendable $2.8 million, restricted $1.8 million, committed $0.2 million, and assigned $35.4 million. Revenues increased by approximately $8.2 million and expenditures increased by $3.5 million when compared to prior year. The revenue increase is a combination of increases in sales, use, and transaction taxes and utility uses. The expenditure increase is reflective of rising costs related to the City of Whittiers Police Services contract and pension costs, this was offset by decrease in pension obligation bonds payment.

The pension obligation bonds were paid off during fiscal year June 30, 2020. During the fiscal year ended June 30, 2022, the overall fund balance in the General Fund increased by $8.0 million.

Within the governmental funds designation, the City has four other major funds: the Low and Moderate Income Housing Assets Special Revenue Fund, the Capital Improvement Capital Projects Fund, the Prefunded Capital Projects Fund, and the Successor Agency Bond Funded Capital Projects Fund.

The Low and Moderate Income Housing Assets Special Revenue Fund was created during FY 2011-12 to account for the assets of the housing fund of the former redevelopment agency. Under the redevelopment dissolution bills, the City acts as housing successor to the former redevelopment agency and will retain the rights and obligations to administer the assets of the fund. The assets of the fund total $12.1 million consisting primarily of cash and investments, notes and loans, advances receivable, and land and buildings held for resale. During fiscal year 2021-22 the fund expended $0.2 million in housing administration costs.

The Capital Improvement Capital Projects Fund is used to account for expenditures on various capital improvement projects and the related revenues to finance the projects. The revenues and expenditures of the fund may vary significantly from year to year depending on the activity each year.

The assets of the fund total $4.4 million primarily consisting of receivables expected to be received from various governmental agencies. During the fiscal year ended June 30, 2022, the overall fund balance increased by $3.0 million to $17 thousand. The increase was due to reimbursements from various government agencies for completed projects during prior year were collected this year. These receivables are outstanding beyond the available period and have not been recognized as revenues.

The Prefunded Capital Projects Fund was created during fiscal year 2012-13 to account for the Citys Capital Improvement Program in the post-redevelopment era. The former redevelopment agency was a significant source of funding prior to dissolution. Without the redevelopment agency, the General Fund became the main source of future funds for the Capital Improvement Program. Through a combination of revenue enhancements (i.e. increase in the utility users tax rate) and cost containment and reduction measures, the General Fund will annually budget a transfer to the Prefunded Capital Projects Fund to build the base from which the Capital Improvement Program will operate. Additionally, one time revenues will be considered for allocation to the fund. For the fiscal year ended June 30, 2022 the General Fund transferred $11.8 million into the Prefunded Capital Projects fund to restore a portion of the CIP target funding. The fund has increased by $7.2 million to $35.8 million as of the fiscal year-end. The increase was primarily due to additional funding transferred from General Fund. City staff, in conjunction with the CIP Subcommittee of the City Council, work together throughout the year to plan and manage the projects financed through this fund.

The Successor Agency Bond Funded Capital Projects Fund was created in fiscal year 2014-15 to account for the unspent bond proceeds of the former redevelopment agency. With approval from the California Department of Finance, the Successor Agency transferred approximately $19.6 million in unspent proceeds to the City as of July 1, 2014. Under a Bond Expenditure Agreement between the City and the Successor Agency, the City manages the projects for which the bond proceeds are to be used. During fiscal year 2021-22 the City expended approximately $0.1 million on projects. As of fiscal

CITY OF SANTA FE SPRINGS
MANAGEMENTS DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2022
(11)
year-end the fund balance decreased by $0.2 million to $7.8 million. The decrease was due lower interest income on investments. The balance accumulated in the fund is to be used on future projects.

General Fund Budgetary Highlights
The difference between the original budget and the final amended budget for expenditures was a $2.7 million increase or 3.8%. The final amended budget exceeded actual expenditures by approximately

6.2% due to lower than expected operation costs throughout most functional areas.

Revenues exceeded the budget amount by $9.5 million, primarily due sales, use, and transaction taxes growth more than anticipated during the pandemic. Increases were seen in other revenue categories, including UUT, and franchise taxes. Increases were partially offset by the investment lost during the year. The Notes to the Required Supplementary Information provides more details regarding budgeting policies and practice.

Capital Assets
The Citys investment in capital assets for its governmental activities as of June 30, 2022, amounts to $165.9 million (net of accumulated depreciation), a decrease of approximately $1.8 million from the previous year. This investment in capital assets includes land, construction in progress, buildings, improvements other than buildings, equipment and infrastructure. Note 7 Capital Assets provides more detailed information on the capital assets.

The Citys investment in capital assets for its business-type activities, the Water Utility Fund, as of June 30, 2022, amounts to $25.6 million (net of accumulated depreciation), a decrease of $0.7 million. Water Utility capital assets required for private development purposes are funded by capital contributions.

Long-term Liabilities
At June 30, 2022, the Citys governmental activities long-term liabilities decreased by $40.2 million to $126.1 million. The Citys business-type activities long-term liabilities decreased by $2.8 million to $18.4 million. The long-term liabilities consisted of bonds, compensated absences, OPEB obligation, Pension obligation, and other loans/leases are summarized in the table below and more detailed information is included in Note 8 Long-Term Liabilities, Note 9 - Compensated Absences, Note 11 Pension Plan Obligations and Note 12 Post-Employment Health Care Benefits.

During FY 2012-13 the Citys business-type activity Water Utility Fund issued $6.89 million in water revenue bonds to refund the existing 2003 water revenue bonds at lower interest rates and provide approximately $2.1 million in additional proceeds to be used for water infrastructure projects. During FY 2017-18, Water Utility Authority issued $1.8 million in water revenue bonds to refund the existing 2005 water revenue bonds at lower interest rates and provide a reduction of approximately $0.4 million in total debt service payments.

CITY OF SANTA FE SPRINGS
MANAGEMENTS DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2022
(12)
Outstanding Debt
(in millions)
Total
Percentage
Change
2021 2022 2021 2022 2021 2022
Revenue bonds $ 0.0 $ 0.0 $ 8.0 $ 7.7 $ 8.0 $ 7.7 -3.8% Compensated absences 2.6 1.9 0.3 0.4 2.9 2.3 -20.7%
OPEB obligation 35.8 26.3 3.5 2.6 39.3 28.9 -26.5%
Pension obligation 124.1 94.4 9.4 7.7 133.5 102.1 -23.5% Other loans/leases 3.8 3.5 0.0 0.0 3.8 3.5 -7.9%
Total $ 166.3 $ 126.1 $ 21.2 $ 18.4 $ 187.5 $ 144.5 -22.9% Governmental Activities Business-type Activities Total
All water revenue and pension obligation bonds are insured issues.

Economic Factors and Next Years Budgets
The City of Santa Fe Springs has dealt with many difficult decisions stemming from the downturn in the economy in the late 2000s, the dissolution of redevelopment agencies and tax increment financing and more recently the COVID-19 pandemic. The Citys condition, despite the impacts of the pandemic, is improving due to revenue enhancements coupled with cost containment and reduction measures but still faces significant financial challenges in the years ahead. Major factors expected to affect the budget include:

Slow recovery of state and local economies.

Funding capital improvements without the Redevelopment Agency, which historically funded the majority of capital projects prior to the dissolution of redevelopment.

Funding for significantly increasing retirement contributions rates caused by a number of factors including the reduced number of active employees, actuarial assumption changes related to mortality and expected investment returns, and poor investment performance of the pension plan during the economic downturn in 2008 and the recent COVID-19 downturn.

Increasing demands for public services, including unfunded mandates by both federal and state governments.

The inflation rates have led to sharp increases in the cost of living throughout our community and it has also increased the cost to deliver Citys programs and services.

All of these factors were considered in adopting the Fiscal Year 2022-23 operational budget.

Requests for Information
This financial report is designed to provide a general overview of the City of Santa Fe Springs finances.

Questions concerning any of the information provided in this report, or requests for additional financial information, should be addressed to the Director of Finance and Administrative Services, City of Santa Fe Springs, 11710 Telegraph Road, Santa Fe Springs, California.

CITY OF SANTA FE SPRINGS

STATEMENT OF NET POSITION
JUNE 30, 2022
See accompanying Notes to Basic Financial Statements.
(13)
Governmental Business-Type
Activities Activity Total

CURRENT ASSETS
Cash and Investments 112,647,590 $ 14,961,308 $ 127,608,898 $ Receivables:

Accounts 2,629,476 1,711,494 4,340,970
Interest 248,447 2,662 251,109 Leases 436,464 - 436,464 Deposits and Other Assets 1,441,880 - 1,441,880 Due from Other Governments 13,609,195 - 13,609,195 Inventories 1,068,702 273,585 1,342,287 Restricted Assets:

Cash with Fiscal Agent 13,837,743 556,299 14,394,042 Total Current Assets 145,919,497 17,505,348 163,424,845 NONCURRENT ASSETS Notes and Loans, Net of Allowances 1,867,432 - 1,867,432 Leases Receivable 18,519,199 - 18,519,199 Land and Buildings Held for Resale 520,032 - 520,032 Capital Assets not Being Depreciated/Amortized 61,026,149 8,380,566 69,406,715 Capital Assets, Net of Depreciation/Amortization 104,898,662 17,311,838 122,210,500 Total Noncurrent Assets 186,831,474 25,692,404 212,523,878 Total Assets 332,750,971 43,197,752 375,948,723
DEFERRED OUTFLOWS OF RESOURCES:

Deferred Charge on Refunding - 50,444 50,444 Deferred Pension-Related Items 19,875,238 1,029,496 20,904,734 Deferred OPEB-Related Items 4,221,333 417,495 4,638,828 Total Deferred Outflows of Resources 24,096,571 1,497,435 25,594,006 CURRENT LIABILITIES Accounts Payable 2,521,768 1,289,670 3,811,438 Accrued Liabilities 1,370,480 125,449 1,495,929 Accrued Interest 35,608 46,006 81,614 Unearned Revenue 3,370,292 - 3,370,292 Deposits Payable 1,848,507 918,293 2,766,800 Due to Other Governments 1,787,144 - 1,787,144
Contracts Payable 7,322 - 7,322 Compensated Absences 440,000 60,000 500,000 Bonds, Notes, and Lease Payable 734,005 213,700 947,705 Total Current Liabilities 12,115,126 2,653,118 14,768,244 NONCURRENT LIABILITIES Compensated Absences 1,459,853 199,003 1,658,856 Bonds, Notes, and Lease Payable 2,813,969 7,394,076 10,208,045 Net OPEB Liability 26,344,625 2,605,513 28,950,138 Net Pension Liability 94,355,756 7,659,770 102,015,526 Total Noncurrent Liabilities 124,974,203 17,858,362 142,832,565 Total Liabilities 137,089,329 20,511,480 157,600,809

DEFERRED INFLOWS OF RESOURCES
Deferred Pension-Related Items 36,692,861 1,460,285 38,153,146 Deferred OPEB-Related Items 9,542,870 943,800 10,486,670 Deferred Leases-Related Items 18,955,663 - 18,955,663
Total Deferred Inflows of Resources 65,191,394 2,404,085 67,595,479

NET POSITION
Net Investment in Capital Assets 162,283,010 18,669,402 180,952,412 Restricted - Nonexpendable 244,676 - 244,676 Restricted - Expendable:

Community Development Projects 94,945 - 94,945 Public Safety 194,231 - 194,231 Public Works 8,346,735 - 8,346,735 Capital Projects 7,840,329 - 7,840,329 Low and Moderate Income Housing 12,108,006 - 12,108,006 Art in Public Places - Expendable 1,628,048 - 1,628,048 Waste Management 1,614,370 - 1,614,370 Environmental Programs 203,908 - 203,908 Unrestricted (39,991,439) 3,110,220 (36,881,219) Total Net Position 154,566,819 $ 21,779,622 $ 176,346,441 $

CITY OF SANTA FE SPRINGS

STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2022
See accompanying Notes to Basic Financial Statements.
(14)
Charges Operating Capital
for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions Governmental Activities:

General Government 7,629,048 $ 3,306,540 $ 2,483,042 $ - $ Public Safety 40,445,624 4,298,393 300,534 - Community Development 2,728,716 2,336,477 - - Public Works 16,318,672 1,317,122 2,585,370 622,474 Culture and Leisure 5,486,877 275,337 813,119 - Human Services 1,637,533 40,073 28,278 - Interest on Long-Term Debt 67,435 - - - Total Governmental Activities 74,313,905 11,573,942 6,210,343 622,474 Business-Type Activity:

Water Fund 12,347,405 15,627,075 72,774 5,287 Total 86,661,310 $ 27,201,017 $ 6,283,117 $ 627,761 $ Program Revenues

CITY OF SANTA FE SPRINGS

STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2022
See accompanying Notes to Basic Financial Statements.
(15)
Governmental Business-Type
Functions/Programs Activities Activity Total
Governmental Activities:

General Government (1,839,466) $ - $ (1,839,466) $
Public Safety (35,846,697) - (35,846,697) Community Development (392,239) - (392,239) Public Works (11,793,706) - (11,793,706) Culture and Leisure (4,398,421) - (4,398,421) Human Services (1,569,182) - (1,569,182) Interest on Long-Term Debt (67,435) - (67,435) Total Governmental Activities (55,907,146) - (55,907,146) Business-Type Activity:

Water Fund - 3,357,731 3,357,731 Total (55,907,146) 3,357,731 (52,549,415) GENERAL REVENUES Taxes
Property Taxes,
Levied for General Purpose 5,724,154 - 5,724,154 Transaction and Use Taxes 15,661,416 - 15,661,416 Sales and Use Taxes 39,572,185 - 39,572,185 Franchise Taxes 3,790,928 - 3,790,928 Business Operation Taxes 809,418 - 809,418 Utility Users Tax 7,824,051 - 7,824,051 Other Taxes 158,797 - 158,797 Intergovernmental Revenues -
Motor Vehicle in Lieu 2,359,894 - 2,359,894
Interest and Rentals (2,976,930) 118,355 (2,858,575) Other 963,042 84,237 1,047,279 Sale of Capital Assets 55,786 - 55,786 Transfers 1,153,809 (1,153,809) - Total General Revenues and Transfers 75,096,550 (951,217) 74,145,333 CHANGE IN NET POSITION 2,406,514 19,189,404 21,595,918 Net Position - Beginning of Year 135,377,415 19,373,108 154,750,523 NET POSITION - END OF YEAR $ 21,779,622 154,566,819 $ 176,346,441 $ Net (Expense) Revenue and
Changes in Net Position

CITY OF SANTA FE SPRINGS
BALANCE SHEETGOVERNMENTAL FUNDS
JUNE 30, 2022
See accompanying Notes to Basic Financial Statements.
(16)
Special Revenue
Fund
Low and
Moderate Prefunded
Income Housing Capital Capital
General Assets Fund Improvement Projects
ASSETS
Pooled Cash and Investments 45,636,148 $ 8,692,383 $ 2,342,604 $ 35,896,566 $ Restricted Cash with Fiscal Agent 13,837,743 - - - Receivables:

Accounts 2,579,678 29,098 20,408 - Notes and Loans, Net of Allowances 302,727 1,435,308 - - Leases 18,955,663 - - - Accrued Interest 214,276 - - - Deposits and Other Assets 1,441,880 - - - Due from Other Governments 10,968,295 - 2,069,276 142,435 Due from Other Funds 1,804,647 - - - Advances to Other Funds - 1,437,861 - - Inventories 1,068,702 - - - Land and Buildings Held for Resale - 520,032 - - Total Assets 96,809,759 $ 12,114,682 $ 4,432,288 $ 36,039,001 $

LIABILITIES, DEFERRED INFLOWS

OF RESOURCES AND FUND BALANCES

LIABILITIES
Accounts Payable 2,418,756 $ 3,598 $ 50,643 $ 48,739 $
Accrued Liabilities 1,358,310 3,078 2,610 6,095 Unearned Revenues 1,230,592 - - - Deposits Payable 1,247,946 - 600,561 - Due to Other Governments 1,721,550 - 65,594 - Due to Other Funds 1,901 - 1,618,891 - Advances from Other Funds 1,437,861 - - - Contracts Payable - - 7,322 - Total Liabilities 9,416,916 6,676 2,345,621 54,834 DEFERRED INFLOWS OF RESOURCES Unavailable Revenues 109,710 - 2,069,276 142,435 Deferred Leases-Related Items 18,955,663 - - - Total Deferred Inflows of Resources 19,065,373 - 2,069,276 142,435 FUND BALANCES Nonspendable:

Inventory 1,068,702 - - - Notes and Loans 302,727 - - - Deposits and Other Assets 1,441,880 - - Permanent Fund Principal - - - - Restricted for:

Community Development Projects - - - - Public Safety - - - - Public Works - - - - Capital Projects - - - - Low and Moderate Income Housing - 12,108,006 - - Art in Public Places - - - - Waste Management 1,614,370 - - - Environmental Programs 203,908 - - - Committed to:

Capital Projects 225,000 - - - Assigned to:

Capital Projects - - - 35,841,732 Facility Improvement 25,193 - - - Equipment Replacement 4,555,954 - - - Economic Uncertainty 7,725,000 - - - Employee Benefits 3,377,785 - - - Risk Management 903,200 - - - Unfunded Liability 18,837,743 - - - Unassigned 28,046,008 - 17,391 - Total Fund Balances 68,327,470 12,108,006 17,391 35,841,732 Total Liabilities, Deferred Inflows of Resources and Fund Balances 96,809,759 $ 12,114,682 $ 4,432,288 $ 36,039,001 $ Capital Projects Funds

CITY OF SANTA FE SPRINGS
BALANCE SHEETGOVERNMENTAL FUNDS (CONTINUED)
JUNE 30, 2022
See accompanying Notes to Basic Financial Statements.
(17)
Capital Projects
Funds
Successor
Agency Bond Nonmajor Total
Funded Capital Governmental Governmental
Projects Funds Funds
ASSETS
Pooled Cash and Investments 7,696,398 $ 12,383,491 $ 112,647,590 $ Restricted Cash with Fiscal Agent - - 13,837,743 Receivables:

Accounts - 292 2,629,476 Notes and Loans, Net of Allowances 110,147 19,250 1,867,432 Leases - - 18,955,663 Accrued Interest 34,171 - 248,447 Deposits and Other Assets - - 1,441,880 Due from Other Governments - 429,189 13,609,195 Due from Other Funds - 1,901 1,806,548 Advances to Other Funds - - 1,437,861 Inventories - - 1,068,702
Land and Buildings Held for Resale - - 520,032 Total Assets 7,840,716 $ 12,834,123 $ 170,070,569 $

LIABILITIES, DEFERRED INFLOWS

OF RESOURCES AND FUND BALANCES

LIABILITIES
Accounts Payable - $ 32 $ 2,521,768 $
Accrued Liabilities 387 - 1,370,480 Unearned Revenues - 2,139,700 3,370,292 Deposits Payable - - 1,848,507
Due to Other Governments - - 1,787,144
Due to Other Funds - 185,756 1,806,548
Advances from Other Funds - - 1,437,861
Contracts Payable - - 7,322 Total Liabilities 387 2,325,488 14,149,922 DEFERRED INFLOWS OF RESOURCES Unavailable Revenues - 80,000 2,401,421 Deferred Leases-Related Items - - 18,955,663 Total Deferred Inflows of Resources - 80,000 21,357,084

FUND BALANCES
Nonspendable:

Inventory - - 1,068,702 Notes and Loans - - 302,727 Deposits and Other Assets - - 1,441,880 Permanent Fund Principal - 244,676 244,676 Restricted for:

Community Development Projects - 94,945 94,945 Public Safety - 194,231 194,231 Public Works - 8,346,735 8,346,735 Capital Projects 7,840,329 - 7,840,329 Low and Moderate Income Housing - - 12,108,006 Art in Public Places - 1,628,048 1,628,048 Waste Management - - 1,614,370 Environmental Programs - - 203,908 Committed to:

Capital Projects - - 225,000 Assigned to:

Capital Projects - - 35,841,732 Facility Improvement - - 25,193 Equipment Replacement - - 4,555,954 Economic Uncertainty - - 7,725,000 Employee Benefits - - 3,377,785 Risk Management - - 903,200 Unfunded Liability - - 18,837,743 Unassigned - (80,000 27,983,399 ) Total Fund Balances 7,840,329 10,428,635 134,563,563 Total Liabilities, Deferred Inflows of Resources and Fund Balances 7,840,716 $ 12,834,123 $ 170,070,569 $

CITY OF SANTA FE SPRINGS

RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS

TO THE STATEMENT OF NET POSITION
JUNE 30, 2022
See accompanying Notes to Basic Financial Statements.
(18)
Fund Balances of Governmental Funds $ 134,563,563
Amounts reported for governmental activities in the statement of net position are different because:

Capital assets, net of accumulated depreciation, used in governmental activities are not current financial resources and, therefore are not reported in the fund financial statements.

Capital Assets not Being Depreciated 61,026,149 $
Capital Assets Being Depreciated 245,445,723 Accumulated Depreciation (140,547,061) 165,924,811 Long-term liabilities applicable to the Citys governmental activities are not due and payable in the current period and accordingly are not reported as fund liabilities. All liabilities, both current and long-term, are reported in the Statement of Net Position. Balances at June 30, 2021 are:

Notes and Lease Payable (3,547,974) Compensated Absences (1,899,853) (5,447,827) Pension and OPEB related debt applicable to the Citys governmental activities are not due and payable in the current period and accordingly are not reported as fund liabilities. Deferred outflows of resources and deferred inflows of resources related to pensions and OPEB are only reported in the Statement of Net Position as the changes in these amounts affect only the government-wide statements for governmental activities.

Deferred Outflows of Resources - Pension Related 19,875,238 Deferred Inflows of Resources - Pension Related (36,692,861) Net Pension Liability (94,355,756) Deferred Outflows of Resources - OPEB Related 4,221,333 Deferred Inflows of Resources - OPEB Related (9,542,870) Net OPEB Liability (26,344,625) (142,839,541) Accrued interest payable for the current portion of interest due on bonds has not been reported in the governmental funds. (35,608) Revenues reported as unavailable revenue in the governmental funds and recognized in the statement of activities. These are included in the intergovernmental revenues in the governmental fund activity. 2,401,421 Net Position of Governmental Activities $ 154,566,819 (19)
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CITY OF SANTA FE SPRINGS

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCESGOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2022
See accompanying Notes to Basic Financial Statements.
(20)
Special Revenue
Fund
Low and
Moderate Prefunded
Income Housing Capital Capital
General Assets Fund Improvement Projects

REVENUES
Taxes 75,540,244 $ - $ - $ - $
Licenses and Permits 2,913,256 - - -
Intergovernmental 926,186 - 3,343,745 52,328 Charges for Services 7,539,315 - 19,057 - Interest and Rentals (2,617,216) 150,565 - - Fines and Forfeitures 446,114 - - - Contributions 260,407 - - - Miscellaneous 866,654 - 284,305 3,825 Total Revenues 85,874,960 150,565 3,647,107 56,153 EXPENDITURES Current
General Government 8,984,761 - - - Public Safety 36,135,015 - - - Community Development 3,040,862 213,405 - - Public Works 11,997,660 - - 441,716 Culture and Leisure 5,759,396 - - - Human Services 1,757,065 - - - Capital Outlay 854,658 - 782,046 4,111,707 Debt Service Principal Retirement 675,015 - - -
Interest and Fiscal Charges 76,193 - - - Total Expenditures 69,280,625 213,405 782,046 4,553,423 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES (62,840) 16,594,335 2,865,061 (4,497,270) OTHER FINANCING SOURCES (USES) Transfers In 2,674,208 - 190,364 11,823,726 Transfers Out (11,800,000) - - (107,285) Sale of Capital Assets 55,786 - - - Lease Obligation 454,612 - - - Total Other Financing Sources (Uses) (8,615,394) - 190,364 11,716,441 NET CHANGE IN FUND BALANCES (62,840) 7,978,941 3,055,425 7,219,171 Fund Balances - Beginning of Year 12,170,846 60,348,529 (3,038,034 28,622,561 ) FUND BALANCES - END OF YEAR $ 12,108,006 68,327,470 $ 17,391 $ 35,841,732 $ Capital Projects Funds

CITY OF SANTA FE SPRINGS

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCESGOVERNMENTAL FUNDS (CONTINUED)
YEAR ENDED JUNE 30, 2022
See accompanying Notes to Basic Financial Statements.
(21)
Capital Projects
Funds
Successor
Agency Bond Nonmajor Total
Funded Capital Governmental Governmental
Projects Funds Funds

REVENUES
Taxes - $ 250,889 $ 75,791,133 $
Licenses and Permits - - 2,913,256
Intergovernmental - 4,691,973 9,014,232
Charges for Services - - 7,558,372
Interest and Rentals (149,653) 65,773 (2,550,531) Fines and Forfeitures - - 446,114 Contributions - 669,055 929,462 Miscellaneous 900 - 1,155,684 Total Revenues (148,753) 5,677,690 95,257,722 EXPENDITURES Current
General Government - 725 8,985,486 Public Safety - 360,203 36,495,218 Community Development - - 3,254,267 Public Works - - 12,439,376 Culture and Leisure - 25,706 5,785,102 Human Services - - 1,757,065 Capital Outlay 61,144 - 5,809,555
Debt Service
Principal Retirement - - 675,015
Interest and Fiscal Charges - - 76,193 Total Expenditures 61,144 386,634 75,277,277 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES 5,291,056 (209,897) 19,980,445 OTHER FINANCING SOURCES (USES) Transfers In - - 14,688,298 Transfers Out - (1,627,204) (13,534,489) Sale of Capital Assets - - 55,786 Lease Obligation - - 454,612 Total Other Financing Sources (Uses) - (1,627,204) 1,664,207 NET CHANGE IN FUND BALANCES 3,663,852 (209,897) 21,644,652 Fund Balances - Beginning of Year 6,764,783 8,050,226 112,918,911 FUND BALANCES - END OF YEAR $ 10,428,635 7,840,329 $ 134,563,563 $

CITY OF SANTA FE SPRINGS

RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES

IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2022
See accompanying Notes to Basic Financial Statements.
(22)
Net Change in Fund Balances - Total Governmental Funds $ 21,644,652 Amounts reported for governmental activities in the statement of activities are different because:

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

Capital Outlay 5,420,268 $
Depreciation (7,213,503) (1,793,235) The issuance of long-term debt provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds.

Neither transaction, however, has any effect on net position. Also, governmental funds report the effect of premiums, discounts and similar items when the debt is first issued, whereas these amounts are deferred and amortized in the Statement of Activities. These amounts are the net effect of these differences in the treatment of long-term debt and related items.

Principal Payment 675,015 Lease Obligation Issuance (454,612) 220,403 Accrued interest for long-term liabilities. This is the net change in accrued interest for the current period. 8,758 Compensated absence expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in the governmental funds. 655,353 Pension expense reported in the governmental funds includes the annual required contributions. In the Statement of Activities, pension expense includes the change in the net pension liability, and related changes in pension amounts for deferred outflows of resources and deferred inflows of resources. (2,397,909) Other postemployment benefit expense reported in the governmental funds includes payment of premiums for the current year. In the OPEB expense includes the change in the net other postemployment benefit liability and OPEB related deferred inflows of resources. 3,815,390 Revenues reported as unavailable revenue in the governmental funds and recognized in the statement of activities. These are included in the revenues in the governmental fund activity. (2,964,008) Change in Net Position of Governmental Activities $ 19,189,404

CITY OF SANTA FE SPRINGS
STATEMENT OF NET POSITIONPROPRIETARY FUNDS
JUNE 30, 2022
See accompanying Notes to Basic Financial Statements.
(23)
Business-Type
Activity -
Enterprise Fund
Water Fund
ASSETS
Current Assets
Pooled Cash and Investments 14,961,308 $
Receivables
Accounts 1,711,494 Accrued interest 2,662
Inventories 273,585 Restricted:

Cash with Fiscal Agent 556,299
Total Current Assets 17,505,348 NONCURRENT ASSETS
Capital Assets not Being Depreciated/Amortized 8,380,566 Capital Assets, Net of Depreciation/Amortization 17,311,838 Total Noncurrent Assets 25,692,404
Total Assets 43,197,752

DEFERRED OUTFLOWS OF RESOURCES
Deferred Charge on Refunding 50,444 Deferred Pension-Related Items 1,029,496 Deferred OPEB-Related Items 417,495 Total Deferred Outflows of Resources 1,497,435

LIABILITIES
Current Liabilities
Accounts Payable 1,289,670
Accrued Liabilities 125,449 Accrued Interest 46,006 Deposits Payable 918,293 Compensated Absences 60,000
Bonds, Notes and Lease Payable 213,700
Total Current Liabilities 2,653,118 NONCURRENT LIABILITIES Compensated Absences 199,003
Bonds, Notes and Lease Payable 7,394,076
Net OPEB Liability 2,605,513
Net Pension Liability 7,659,770
Total Noncurrent Liabilities 17,858,362 Total Liabilities 20,511,480 DEFERRED INFLOWS OF RESOURCES:

Deferred Pension-Related Items 1,460,285 Deferred OPEB-Related Items 943,800 Total Deferred Inflows of Resources 2,404,085

NET POSITION
Net Investment in Capital Assets 18,669,402 Unrestricted 3,110,220 Total Net Position 21,779,622 $

CITY OF SANTA FE SPRINGS
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION

PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2022
See accompanying Notes to Basic Financial Statements.
(24)
Business-Type
Activity -
Enterprise Fund
Water Fund

OPERATING REVENUES
Sales and Service Charges 15,627,075 $
Other Water Revenue 84,237 Total Operating Revenues 15,711,312 OPERATING EXPENSES Source of Supply 6,962,310 System Maintenance and Operation 2,260,946 Billing and Collection 1,037,713
Administration 1,129,346
Depreciation/Amortization Expense 648,321 Total Operating Expenses 12,038,636 OPERATING INCOME 3,672,676

NONOPERATING REVENUES (EXPENSES)
Interest Revenue 118,355
Interest Expense (308,769)
Intergovernmental Revenue 72,774 Total Nonoperating Revenues (Expenses) (117,640) INCOME BEFORE TRANSFERS AND CONTRIBUTIONS 3,555,036
Contributions 5,287 Transfers Out (1,153,809) CHANGE IN NET POSITION 2,406,514 Net Position - Beginning of Year 19,373,108 NET POSITION - END OF YEAR $ 21,779,622

CITY OF SANTA FE SPRINGS
STATEMENT OF CASH FLOWSPROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2022
See accompanying Notes to Basic Financial Statements.
(25)
Business-Type
Activity - Enterprise Fund
Water Fund

CASH FLOWS FROM OPERATING ACTIVITIES
Cash Received from Customers and Users 15,697,192 $
Cash Paid to Suppliers for Goods and Services (10,349,299) Cash Paid to Employees for Services (1,930,866)
Cash Received from Others 84,237 Net Cash Provided by Operating Activities 3,501,264 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Cash Transfers Out (1,153,809)
Cash Received from Other Governments 72,774 Net Cash Used by Noncapital Financing Activities (1,081,035)

CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Principal Paid on Capital Debt (206,829)
Interest Paid on Capital Debt (280,936)
Net Cash Used by Capital and Related Financing Activities (487,765)

CASH FLOWS FROM INVESTING ACTIVITIES
Interest Received 118,176 Net Cash Provided by Investing Activities 118,176 NET INCREASE IN CASH AND CASH EQUIVALENTS 2,050,640 Cash and Cash Equivalents - Beginning of Year 13,466,967 CASH AND CASH EQUIVALENTS - END OF YEAR $ 15,517,607 CASH AND CASH EQUIVALENTS:

Pooled Cash and Investments 14,961,308 $
Cash with Fiscal Agent 556,299 Total Cash and Cash Equivalents 15,517,607 $

RECONCILIATION OF OPERATING INCOME TO NET CASH
PROVIDED BY OPERATING ACTIVITIES:

Operating Income 3,672,676 $
Adjustments to Reconcile Operating Income to Net Cash Provided by Operating Activities:

Depreciation/Amortization Expense 648,321 (Increase) Decrease in Assets:

Accounts Receivable 44,756
Inventory 3,631
Prepaid Expense 5,767 Deferred Outflows for Pension-Related Items (111,512) Deferred Outflows for OPEB-Related Items 69,738
Increase (Decrease) in Liabilities:

Accounts Payable (70,988)
Accrued Liabilities 20,510 Deposits Payable 25,361 Compensated Absences (89,435) Deferred Inflows for Pension-Related Items 1,460,285 Deferred Inflows for OPEB-Related Items 492,548 Net Pension Liability (1,730,761) Other Postemployments Benefits (939,633)
Net Cash Provided by Operating Activities 3,501,264 $

NONCASH INVESTING, CAPITAL AND FINANCING ACTIVITIES
Contributed Capital Assets Received 5,287 $
Amortization of Bond Discounts, and Deferred Charges 28,650 $

CITY OF SANTA FE SPRINGS

STATEMENT OF FIDUCIARY NET POSITION
JUNE 30, 2022
See accompanying Notes to Basic Financial Statements.
(26)
Private-Purpose
Trust Fund
Successor
Custodial Agency of the
Funds Former RDA
ASSETS
Pooled Cash and Investments 686,238 $ 199,804 $
Receivables:

Accounts 8,858 18,773 Notes and Loans - 61,438
Due from Other Governments - 47,236
Land and Buildings Held for Resale - 4,251,851 Restricted Assets:

Cash and Investments with Fiscal Agents 169,438 11,880,191 Capital Assets:

Capital Assets not Being Depreciated - 415,530 Total Assets 864,534 16,874,823 DEFERRED OUTFLOWS OF RESOURCES Deferred Charge on Refunding - 194,956 Total Deferred Outflows of Resources - 194,956

LIABILITIES
Accounts Payable - 4,956 Accrued Liabilities - 7,055
Accrued Interest - 1,528,660 Deposits Payable - 48,300 Due to Other Governments 8,858 16,742 Long-Term Liabilities:

Due in One Year - 7,380,198 Due in More Than One Year - 43,995,214 Total Liabilities 8,858 52,981,125

NET POSITION
Held for Bondholders 855,676 - Held in Trust for Other Purposes - (35,911,346) Total Net Position 855,676 $ (35,911,346) $

CITY OF SANTA FE SPRINGS

STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FOR THE YEAR ENDED JUNE 30, 2022
See accompanying Notes to Basic Financial Statements.
(27)
Private-Purpose
Trust Fund
Successor
Custodial Agency of the
Funds Former RDA

ADDITIONS
Taxes - $ 10,267,738 $
Special Assessments or Special Taxes
Collected From Property Owners 216,588 -
Interest and Change in Fair Value of Investments 34 1,644 Total Additions 216,622 10,269,382 DEDUCTIONS Administrative Expenses - 250,952 Program Expenses - 41,966 Payment for Special Assessment or Special Tax Debt 164,986 - Interest Expense - 1,971,623 Total Deductions 164,986 2,264,541 CHANGE IN NET POSITION 8,004,841 51,636
Net Position - Beginning of Year, as Restated 804,040 (43,916,187) NET POSITION - END OF YEAR $ (35,911,346) 855,676 $ (28)
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CITY OF SANTA FE SPRINGS

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
(29)
NOTE 1 ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Financial Reporting Entity
The City of Santa Fe Springs (City) was incorporated on May 15, 1957, under the general laws of the state of California and enjoys all the rights and privileges pertaining to such General Law cities and is governed by an elected five-member City Council. As required by accounting principles generally accepted in the United States of America, these financial statements present the City (the primary government) and its component units. The component units discussed below are included in the Citys reporting entity because of the significance of their operational or financial relationship with the City. These entities are legally separate from each other. However, the City elected officials have a continuing accountability for fiscal matters of the other entities. The financial reporting entity consists of:
(1) the City, (2) organizations for which the City is financially accountable, and (3) organizations for which the nature and significance of their relationship with the City are such that exclusion would cause the Citys financial statements to be misleading or incomplete.

An organization is fiscally dependent on the primary government if it is unable to adopt its budget, levy taxes or set rates or charges, or issue bonded debt without approval by the primary government. In a blended presentation, a component units balances and transactions are reported in a manner similar to the balances and transactions of the City.

Component units are presented on a blended basis when the component units governing body is substantially the same as the citys and (1) there is a financial benefit or burden relationship between the primary government and the component unit, or (2) management of the primary government has operational responsibility for the component unit, or the component unit provides services almost entirely to the City.

In accordance with Assembly Bill 1X 26 (the Dissolution Act), the Successor Agency to the Community Development Commission for the City of Santa Fe Springs (Successor Agency) was created on February 1, 2012 to serve as a custodian for the assets and to wind down the affairs of the former Agency. The Successor Agency is a legally separate public entity from the City and as a private-purpose trust fund.

In general, the Successor Agencys assets can only be used to pay enforceable obligations in existence at the date of dissolution (including the completion of any unfinished projects that were subject to legally enforceable contractual commitments). In future fiscal years, the Successor Agency will only be allocated revenue in the amount that is necessary to pay the estimated annual installment payments on enforceable obligations of the former Agency until all enforceable obligations of the former Agency have been paid in full and all assets have been liquidated. Based upon the nature of the Successor Agencys custodial role, the Successor Agency is reported in a fiduciary fund (private-purpose trust fund). See Note 16 for further detail regarding the dissolution.

CITY OF SANTA FE SPRINGS

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
(30)
NOTE 1 ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Blended Component Units
The City of Santa Fe Springs Public Financing Authority (PFA) was organized under a joint exercise of power agreement on August 24, 1989. The purpose of this authority is to provide, through the issuance of debt, financing for public capital improvements. The board of directors is appointed by the City Council. The PFA has no activity in the current year.

The Santa Fe Springs Water Utility Authority (WUA) was organized under a joint exercise of power agreement on July 1, 2009. The purpose of this authority is to provide an entity to assist in financing, leasing, owning, operating, and maintaining the water operation. The City Council members are designated as board of directors of the WUA. The WUA has debt outstanding reported in the Water Proprietary Fund and Water Proprietary Fund revenues are pledged to the payment of the debt.

Separate Successor Agency, PFA, and WUA financial statements are not available.

Joint Powers Agreements
Joint Fire Dispatching Center
The City is a participant in the Joint Fire Dispatching Center (Center). The Center is currently comprised of four member cities and is organized under a Joint Powers Agreement. Each member City provides an annually determined contribution towards the ongoing operation. The purpose of the Center is to provide centralized fire dispatching for the participating cities. The communication system is located in and operated by the City of Downey. The payments from the participating cities for the fiscal year ended June 30, 2022, were based on the following percentages:

Downey 34.62 %
Santa Fe Springs 16.17 %
Compton 39.28 %
Vernon 9.93 %
During the fiscal year ended June 30, 2022, the City contributed $254,121 for the operation of the Center. Separate audited financial statements are not prepared for the Center.

Financial information can be obtained from the City of Downey at 11111 Brookshire Avenue, Downey, California.

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NOTE 1 ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Joint Powers Agreements (Continued)
Southeast Water Coalition
The City is a participant in the Southeast Water Coalition (Coalition). The Coalition is currently comprised of several municipal entities in the County of Los Angeles and is organized under a Joint Powers Agreement. The purpose of the Coalition is to maintain groundwater quality within the Central and West Coast Basins (Basins), maintain secure groundwater supplies within the Basins, manage the use of groundwater within the Basins, coordinate efforts among Watermaster and entities proposing to store water within the Basins for future recovery, facilitate the implementation of a conjunctive use program by water purveyors, coordinate efforts among local entities and Watermaster to devise and implement strategies to safeguard groundwater quality, and work cooperatively with Watermaster, the Water Replenishment District of Southern California, and other entities to promote coordination of policies and activities throughout the region. Each member of the Coalition shares financial responsibility equally. Each member is required to make a contribution at the beginning of each year. The contribution requirement for the fiscal year ended June 30, 2022 was $5,000. Financial statements can be obtained from the City of Whitter. City Hall is located at 13230 Penn Street, Whittier, California.

Basis of Accounting and Measurement Focus
The basic financial statements of the City are composed of the following:

Government-wide financial statements
Fund financial statements
Notes to the financial statements.

Government-Wide Financial Statements
The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information about the primary government and component units as a whole, except for its fiduciary activities. These statements report separately for governmental and business-type activities of the primary government (including its blended component units). Governmental activities are normally financed primarily by taxes and intergovernmental revenues. Business-type activities are financed primarily by fees charged for goods or services.

Certain indirect costs have been allocated and are included as part of the program expenses reported for the various functional activities. As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements.

Exceptions to this general rule are payments-in-lieu of taxes and other service charges between the Citys water utility and various other functions of the government. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned.

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NOTE 1 ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Government-Wide Financial Statements (Continued)
These statements are presented on an economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund and fiduciary fund financial statements. Accordingly, all of the Citys assets and liabilities, including capital assets and infrastructure as well as long-term liabilities, are included in the accompanying statement of net position. The statement of activities presents changes in net position. Using the accrual basis of accounting, revenues are recognized in the period in which they are earned and expenses are recognized in the period in which the liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenue in the year for which they are levied. Grants and similar items are recognized as revenue when all eligibility requirements have been satisfied. The statement of activities demonstrates the degree to which the direct expenses of a given function are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function. Program revenues are reported in three categories: 1) charges for services, 2) operating grants and contributions, and 3) capital grants and contributions. Charges for services include revenues from customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function. Grants and contributions include revenues restricted to meeting the operational or capital requirements of a particular function. Taxes and other items not properly included among program revenues are reported instead as general revenues.

Governmental Funds Financial Statements
The accounting records of the City are organized on the basis of funds. Each fund is a separate accounting entity with a self-balancing set of accounts that comprise its assets, liabilities, fund balance, revenues, and expenditures. Governmental resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled.

The governmental funds financial statements include a balance sheet and a statement of revenues, expenditures, and changes in fund balances for all major governmental funds and aggregated nonmajor funds. An accompanying schedule is presented to reconcile and explain the differences in fund balances as presented in these statements to the net position presented in the government-wide financial statements.

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NOTE 1 ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Governmental Funds Financial Statements (Continued)
Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized when they are both measurable and available. Measurable means that the amounts can be estimated, or otherwise determined. Available means that the amounts were collected during the reporting period or soon enough thereafter to be available to finance the expenditures accrued for the reporting period. The City uses an availability period of 60 days, except sales tax revenues, which is 90 days. Sales taxes, property taxes, franchise fees, gas taxes, motor vehicle in lieu fees, highway users taxes, transient occupancy taxes, grants and investment income associated with the current fiscal period are all considered to be susceptible to accrual and have been recognized as revenues of the current fiscal period to the extent normally collected within the availability period. Other revenue items are considered to be measurable and available when cash is received by the government.

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

The City reports the following major governmental funds:

The General Fund is the Citys primary operating fund. This fund accounts for all financial resources of the general government, except those required to be accounted for in another fund.

The Low and Moderate Income Housing Assets Special Revenue Fund is used to account for the receipts and expenditures relating to the Housing Successor in accordance with the California Health and Safety Code.

The Capital Improvement Capital Projects Fund is used to account for monies received from the General Fund, special revenue funds, private developers and from outside governmental entities. These funds are subsequently used for the construction or rehabilitation of streets, bridges, traffic signals, public facilities and a variety of other construction or improvement projects.

The Prefunded Capital Projects Fund was established in fiscal year 2013. It is used to account for the accumulation of resources used for various construction, rehabilitation, and improvement projects similar to the Capital Improvement Fund. This fund differs from the Capital Improvement Capital Projects Fund in that resources are typically accumulated in the fund prior to undertaking the projects.

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NOTE 1 ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Governmental Funds Financial Statements (Continued)
The Successor Agency Bond Funded Capital Projects Fund is used to account for the expenditure of unspent bond proceeds of the Successor Agency used for various construction, rehabilitation, and improvement projects within the Consolidated Project Area of the former Community Development Commission. All unspent bond proceeds were transferred to the City during fiscal year 2014-15 in accordance with a Bond Expenditure Agreement between the City and Successor Agency.

Additionally, the City reports the following fund types:

Special Revenue Funds account for the proceeds of specific revenue sources that are legally restricted to expenditures for specific purposes.

Permanent Funds account for resources that are legally restricted to the extent that only earnings, not principal, may be used for purposes that support specific programs.

Proprietary Funds Financial Statements
Proprietary Funds distinguish operating revenues and expenses from nonoperating items.

Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary funds principal ongoing operations.

The principal operating revenues of the Citys proprietary funds are charges to customers for sales and services. Operating expenses for the proprietary funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.

The City reports the following major proprietary fund:

The Water Fund is used to account for the operations of the City owned water system.

Fiduciary Fund Financial Statements
Fiduciary funds are accounted for on the accrual basis of accounting as are the proprietary funds explained above. The City reports the following fiduciary funds, which are excluded from the government-wide financial statements:

The Private-Purpose Trust Fund accounts for the custodial responsibilities that are assigned to the Successor Agency pursuant to the Dissolution Act.

The City reports the following Custodial funds:

The Assessment Districts Fund is used to account for special assessments received by the City as agent for payment of special assessment district bonds.

The Community Facilities Assessment Districts Fund is used to account for special assessments received by the City as agent for payment of community facilities district debt and expenses.

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NOTE 1 ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Functional Classifications
General government - includes the legislative activities, which have a primary objective of providing legal and policy guidance for industrial and residential issues within the City. Also included in this classification are those activities, which provide management or support services across more than one functional area.

Public safety - includes those activities, which have a primary objective of protecting people and property other than health related perils.

Community development - includes those activities which have a primary objective of enhancing the general quality of life in the City. This encompasses aesthetic, as well as economical and structural activities.

Public works - includes all maintenance and engineering of streets, parks, and other public facilities.

Culture and leisure - includes those activities, which have a primary objective of providing recreational and educational endeavors.

Human services - includes those activities, which have a primary objective of maintaining or improving the physical and/or mental health of residents of the community, improving the employment status of unemployed or underemployed residents, and otherwise serving the needs of the less privileged.

Adoption of New Accounting Standards
GASB Statement No. 87, Leases
In June 2017, the GASB issued GASB Statement No. 87, Leases. This standard requires the recognition of certain lease assets and liabilities for leases that previously were classified as operating leases and as inflows of resources or outflows of resources recognized 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 standard, a lessee is required to recognize a lease liability and a right-to-use lease asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resources.

The City adopted the requirements of the guidance effective July 1, 2021, and has applied the provisions of this standard to the beginning of the period of adoption. There was no change to beginning fund balance or net position as a result of the implementation of this standard. The City is reporting lease receivables and deferred inflows of resources related to leases disclosed in Note 3, right-to-use assets in Note 7, and lease liabilities in Note 8.

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NOTE 1 ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Inventory and Prepaid Items
Inventory (General Fund and Water Fund) is valued utilizing the average cost method.

Inventory items are considered expenditures or expenses when used under the consumption method.

Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements. These prepaid items are reflected in the financial statements as deposits and other assets and are accounted for under the consumption method.

Property Taxes
Under California law, the assessment, levy and collection of property taxes are the responsibility of the County of Los Angeles. The City records property taxes as revenue in the year for which they are levied, and in the governmental fund statements when received from the County within 60 days of year-end. Property taxes are assessed and collected each fiscal year according to the following property tax calendar:

Lien
Levy period
Due
Delinquent
April 11 - 2nd installment
January 1
July 1 - June 30
November 1 - 1st installment
February 1 - 2nd installment
December 11 - 1st installment
Cash and Cash Equivalents
For purposes of the statement of cash flows, the City considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. In addition, funds invested in the Citys cash and investment pool are considered cash equivalents.

Investments
All investments are stated at fair value (the value at which a financial instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale), except for money market investments, which have a remaining maturity of less than one year when purchased, which are stated at amortized cost. Money market investments are short-term, highly liquid debt instruments including commercial paper, bankers acceptances, and U.S. Treasury and agency obligations.

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NOTE 1 ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Capital Assets
Capital assets, which include property, plant, equipment, and infrastructure assets (roads, sidewalks, drainage systems, lighting systems, etc.) are reported in the applicable governmental or business-type activities columns in the government-wide and enterprise fund financial statements. These assets are stated at historical cost or estimated historical cost if purchased or constructed (except for intangible right-to-use lease assets, the measurement of which is discussed below). The City conducted an infrastructure valuation in conjunction with the implementation of GASB No. 34 during the fiscal year ended June 30, 2002. Current replacement costs were calculated for infrastructure assets and discounted back to the original construction dates and the corresponding accumulated depreciation was calculated. Donated capital assets are stated at their estimated acquisition value on the date received. The capitalization threshold is $20,000, except for vehicles, equipment and streetlights which is $5,000.

The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend the life of assets are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. Depreciation is recorded in the government-wide and enterprise fund financial statements on a straight-line basis over the useful life of the assets as follows:

Assets Years
Computer 3
Furniture 10
Machinery and equipment 3 to 20
Vehicles 8
Water service meters and hydrants 10 to 50
Water transmission and distribution mains 10 to 50
Infrastructure 20 to 75
Leases
Lessee
The City is a lessee for a noncancellable lease of equipment. The City recognizes a lease liability and a right-to-use lease asset (lease asset) in the applicable governmental activities or business-type activities in the government-wide and in the proprietary fund financial statements. The City recognizes lease liabilities with an initial, individual value of $5,000 or more.

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.

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NOTE 1 ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Leases (Continued)
Lessee (Continued)
Key estimates and judgments related to leases include how the City determines (1) the discount rate it uses to discount the expected lease payments to present value, (2) lease term, and (3) lease payments.

The City uses the interest rate charged by the lessor as the discount rate. When the interest rate charged by the lessor is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate for leases.

The lease term includes the noncancellable period of the lease.

Lease payments included in the measurement of the lease liability are composed of fixed payments and the purchase option price that the City is reasonably certain to exercise.

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

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

Lessor
The City is a lessor for noncancellable leases of land and buildings. The City recognizes a lease receivable and a deferred inflow of resources in the governmental activities of the statement of net position and in the 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.

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.

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NOTE 1 ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Leases (Continued)
Lessor (Continued)
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.

Land and Buildings Held for Resale
Land and related buildings acquired by the former Community Development Commission (former Commission) and held for resale are accounted for as an investment and are recorded at the lower of cost or estimated realizable value, as determined upon the execution of a disposition and development agreement. Upon the dissolution of the former Commission, land and buildings held for resale were transferred to respective Low and Moderate Income Housing Assets Fund and Successor Agency Private-Purpose Trust Fund.

Deferred Outflows/Inflows of Resources
In addition to assets, the statement of net position and balance sheet reports 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 category of deferred outflow of resources reported in the statement of net position is related to debt refunding, pensions, and other postemployment benefits. The deferred charge on refunding results from the difference in the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt.

Deferred outflows on pension and other postemployment benefits are more fully discussed in Note 11 and 12.

In addition to liabilities, the statement of net position and balance sheet reports a separate section for deferred inflows of resources. Deferred inflows of resources represent an acquisition of net assets or fund balance that applies to a future period(s) and thus will not be recognized as an inflow of resources (revenue) until that time. The Citys deferred inflows of resources reported on the statement of net position relate to pension and other postemployment benefits, which are more fully discussed in Note 11 and 12. The statement of net position and the governmental funds balance sheet report a deferred inflow of resources related to leases.

Under the modified accrual basis of accounting, deferred inflows of resources also include revenues not collected within the availability period after the fiscal year-end. These amounts are deferred and will be recognized as an inflow of resources in the period that amounts become available.

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NOTE 1 ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Unearned Revenue
Unearned revenues are reported in connection with resources that have been received but not yet earned.

Compensated Absences
The cost of earned but unused vacation and sick leave, for which the City has a future obligation to pay, is recognized in the government-wide financial statements. A liability for these amounts is reported in governmental funds only if they have become due and payable as a result of employee resignations or retirements. For sick leave, Fire Safety personnel will receive 25% of the employees current hourly pay upon normal service retirement, if the member reaches 90% service credit with CalPERS.

Pension Plans
For purposes of measuring the net pension liability, deferred outflows and inflows of resources related to pensions, and pension expense, information about the fiduciary net position and additions to/deductions from the fiduciary net position have been determined on the same basis as they are reported by the CalPERS Financial Office. For this purpose, benefit payments (including refunds of employee contributions) are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value. CalPERS audited financial statements are publicly available reports that can be obtained at CalPERS website under Forms and Publications.

Other Postemployment Benefits (OPEB)
For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of Citys OPEB Plan, the assets of which are held by California Employers Retiree Benefit Trust (CERBT), and additions to/deductions from the OPEB Plans fiduciary net position have been determined by an independent actuary. For this purpose, benefit payments are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value.

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NOTE 1 ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Net Position
The government-wide and proprietary fund financial statements utilize a net position presentation. Net position is categorized as net investment in capital assets, restricted, and unrestricted.

Net investment in capital assets - This category groups all capital assets, including infrastructure, into one component of net position. Accumulated depreciation and the outstanding balances of debt that are attributable to the acquisition, construction, or improvement of these assets reduce the balance in this category.

Restricted - This category represents restricted assets reduced by liabilities related to those assets. Restrictions can be imposed by creditors, grantors, contributors or laws or regulations of other governments and restrictions imposed by law through constitutional provisions or enabling legislation.

Unrestricted - This category represents net position of the City, not restricted for any project or other purpose.

Use of Restricted Resources
When both restricted and unrestricted resources are available for use, it is the Citys policy to use restricted resources first, then unrestricted resources as they are needed Fund Balances
As prescribed by GASB Statement No. 54, governmental funds report fund balance in classifications based primarily on the extent to which the City is bound to honor constraints on the specific purposes for which amounts in the funds can be spent. As of June 30, 2022, fund balances for government funds are made up of the following:

Nonspendable Fund Balance - includes amounts that are (a) not in spendable form, or (b) legally or contractually required to be maintained intact. The not in spendable form criterion includes items that are not expected to be converted to cash, for example: inventory, prepaid amounts, and long-term notes receivable.

Restricted Fund Balance - includes amounts that can be spent only for the specific purposes stipulated by external resource providers, constitutionally or through enabling legislation. Restrictions may effectively be changed or lifted only with the consent of resource providers.

Committed Fund Balance - includes amounts that can only be used for the specific purposes determined by a resolution of the Citys highest level of decision-making authority, the City Council. Commitments may be changed or lifted only by the City adopting a resolution.

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NOTE 1 ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Fund Balances (Continued)
Assigned Fund Balance - comprises amounts intended to be used by the City for specific purposes that are neither restricted nor committed. Intent is expressed by the City Council to which the City Council has delegated the authority to assign amounts to be used for specific purposes.

Unassigned Fund Balance - is the residual classification for the General Fund and includes all amounts not contained in the other classifications. Unassigned amounts are technically available for any purpose. Other governmental funds may only report a negative unassigned balance that was created after classification in one of the other four fund balance categories.

In circumstances when expenditures are incurred for purposes for which both restricted and unrestricted (committed, assigned, or unassigned) fund balances are available, the Citys policy is to first apply restricted fund balance. When expenditures are incurred for purposes for which committed, assigned or unassigned fund balances are available, the Citys policy is to first apply committed fund balance. It is at the discretion of the Councils designee to then apply the remaining expenditures to assigned or unassigned fund balance.

The City Council delegates to the City Manager and Director of Finance and Administrative Services the authority to assign unrestricted fund balance amounts where the Citys intent is for those amounts to be used for specific purposes. This delegation of authority is for the sole purpose of reporting these amounts in the annual financial statements.

Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.

Endowments
The City has been the recipient of endowments that are recorded in Permanent Funds. The endowments are legally restricted to the extent that only earnings, and not principal, may be used for purposes that support the Citys programs or specific restrictions that were placed on the endowment when the donation to the City was made.

Stewardship, Compliance and Accountability
Deficit Fund Balance
At June 30, 2022 the Capital Improvement fund had a deficit fund balance of $89,894 and the Fire Grants fund had a deficit fund balance of $79,999. These funds are on a cost reimbursement basis. The deficit resulted from timing differences between when expenditures are incurred and the recognition of grant revenue. These funds will be replenished with reimbursements from grantor.

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NOTE 1 ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Stewardship, Compliance and Accountability (Continued
Expenditures in Excess of Appropriations
The following funds reported expenditures in excess of the adopted budget:

Community Development Block Grant ($9,206)
NOTE 2 CASH AND INVESTMENTS
Cash and investments as of June 30, 2022, are classified in the accompanying financial follows:

Statement of Net Position:

Pooled Cash and Investments 127,608,898 $
Cash and Investments with Fiscal Agent 14,394,042 Fiduciary Funds:

Pooled Cash and Investments 886,042 Cash and Investments with Fiscal Agent 12,049,629 Total 154,938,611 $ Cash and investments were comprised of the following as of June 30, 2022:

Cash on Hand 57,627 $
Deposits with Financial Institutions 3,858,686 California Employers' Pension Prefunding Trust* 13,837,744 Investments 137,184,554 Total 154,938,611 $
* Disclosures related to investments in CalPERS California Employers Pension Prefunding Trust related to interest rate risk and fair value are available online.

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NOTE 2 CASH AND INVESTMENTS (CONTINUED)
Investments Authorized by the Citys Investment Policy
The Citys Statement of Investment Policy (investment policy), is adopted by the City Council. The investment policy is more conservative and restrictive than the investment vehicles authorized by Section 53601 of the California Government Code. The Citys investment policy does not allow investments in stocks, inverse floaters, range notes, mortgage-derived, interest-only strips, or any security that could result in zero interest accrual if held to maturity. Investment vehicles not specifically mentioned in the Citys investment policy are not authorized unless the policy is amended by the City Council or are approved as part of the provisions of the bond indentures. Investments are limited to:

Maximum Maximum
Maximum Percentage Investment in
Authorized Investment Type Maturity of Portfolio* One Issuer U.S. Treasury Obligations 5 years None None
U.S. Agency Securities 5 years None None
Municipal Obligations 5 years 30% 5%
Bankers' Acceptances 180 days 40% 5%
Commercial Paper 270 days 25% 10%
Medium-Term Notes 5 years 30% 5%
Time Certificates of Deposit 3 years 30% 5%
Negotiable Certificates of Deposit 5 years 30% 5%
Supranationals 5 years 30% None
Asset-Backed Securities 5 years 20% 5%
Money Market Mutual Funds N/A 20% None
Local Agency Investment Fund (LAIF) N/A $75 million None Los Angeles County Pooled Fund N/A None None
Local Government Investment Pools (LGIPs) N/A None None *Excluding amounts held by bond trustee that are subject to California Code restrictions Investments Authorized by Debt Agreements
Investments of debt proceeds held by bond trustee are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the Citys investment policy. The table below identifies the investment types that are authorized for investments held by bond trustee. The table also identifies certain provisions of these debt agreements that address interest rate risk, and concentration of credit risk.

Maximum Maximum
Maximum Percentage Investment in
Authorized Investment Type Maturity of Portfolio One Issuer U.S. Treasury Obligations None None None
U.S. Agency Securities None None None
Bankers' Acceptances 180 days None None
Commercial Paper 270 days None None
Money Market Mutual Funds N/A None None
Investment Contracts 30 years None None
Local Agency Investment Fund (LAIF) N/A None None

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NOTE 2 CASH AND INVESTMENTS (CONTINUED)
Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. One of the ways that the City manages its exposure to interest rate risk is by purchasing a combination of shorter term and longer term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations.

Information about the sensitivity of the fair values of the City investments (including investments held by bond trustee) to market interest rate fluctuations is provided by the following table:
12 Months 13 to 24 25 to 36 37 to 48 48 to 60
Investment Type or Less Months Months Months Months Total U.S. Treasury Obligations - $ 3,785,455 $ 4,505,021 $ 4,776,703 $ 2,861,621 $ 15,928,800 $ U.S. Agency Securities:

Federal Home Loan
Mortgage Corporation (FHLMC) - 883,207 - 634,711 - 1,517,918 Federal National Mortgage
Association (FNMA) - - 270,618 730,693 - 1,001,311
Federal Home Loan Bank (FHLB) 306,517 - - - - 306,517
Municipal Obligations 70,000 121,770 381,828 239,012 - 812,610 Medium-Term Notes 730,217 2,270,428 3,132,680 932,882 1,213,382 8,279,589 Negotiable Certificates of Deposit (CD) 250,035 - - - - 250,035 Supranationals - 192,593 311,975 - - 504,568 Federal Agency Collateralized Mortgage Obligation 3,498 593,765 306,794 - - 904,057
Asset-Backed Securities 421,912 - 278,371 845,447 1,274,875 2,820,605 Money Market Funds 323,941 - - - - 323,941 Local Agency Investment Fund (LAIF) 91,928,674 - - - - 91,928,674 Held by Bond Trustee:

Money Market Funds 12,605,929 - - - - 12,605,929 Total $ 7,985,380 106,502,561 $ 9,187,287 $ 8,159,448 $ 5,349,878 $ 137,184,554 $ Remaining Maturity (in Months)
Credit Risk
The Citys investment policy limits investments to a rating of A-1 or higher for California state and local agency obligations, banker acceptances, and commercial paper that is (i) organized within the United States as a special purpose corporation, trust, or limited liability company and (ii) has program wide credit enhancements including, but not limited to, over collateralization, letters of credit. The Citys investment policy limits investments to a rating of A-1 or higher for other state obligations, medium-term notes, asset backed securities and commercial paper that is (i) organized and operating in the United States as a general corporation and (ii) has total assets in excess of five hundred million dollars ($500,000,000). The Citys investment policy limits investments to a rating of AA or higher for supranational. As of June 30, 2022, the Citys investments in external investment pools and money market mutual funds are unrated.

CITY OF SANTA FE SPRINGS

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
(46)
NOTE 2 CASH AND INVESTMENTS (CONTINUED)
Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. The Citys investments are rated by the following nationally recognized statistical rating organization as follows:

Minimum
Total as of Legal Not
Investment Type June 30, 2022 Rating AAA AA A BBB Rated U.S. Treasury Obligations 15,928,800 $ N/A - $ 15,928,800 $ - $ - $ - $ U.S. Agency Securities:

FHLMC 1,517,918 N/A - 1,517,918 - - - FNMA 1,001,311 N/A - 1,001,311 - - - FHLB 306,517 N/A - 306,517 - - - Municipal Obligations 812,610 A - 620,840 - - 191,770 Medium-Term Notes 8,279,589 A - 1,578,183 5,834,032 867,374 - Negotiable CD 250,035 A - - 250,035 - - Supranationals 504,568 AA 504,568 - - - - Federal Agency Collateralized Mortgage Obligation 904,057 AA - 904,057 - - - Asset-Backed Securities 2,820,605 AA 2,438,249 - - - 382,356 Money Market Funds 323,941 N/A 323,941 - - - - LAIF 91,928,674 N/A - - - - 91,928,674 Held by Bond Trustee:

Money Market Funds 12,605,929 AAA 12,605,929 - - - - Total 137,184,554 $ 15,872,687 $ 21,857,626 $ 6,084,067 $ 867,374 $ 92,502,800 $ Concentration of Credit Risk
The investment policy of the City contains limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code. There are no investments held that represent 5% or more in any one issuer other than external investment pools and money market funds at June 30, 2022.

Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the Citys investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the following provision for deposits: The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits.

CITY OF SANTA FE SPRINGS

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
(47)
NOTE 2 CASH AND INVESTMENTS (CONTINUED)
Investment in State Investment Pool
The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by California Government Code Section 16429 under the oversight of the treasurer of the state of California. The fair value of the Citys investment in this pool is reported in the accompanying financial statements at amounts based upon the Citys prorata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis.

Fair Value Hierarchy
The City categorizes its fair value measurements within the fair value hierarchy established by accounting principles generally accepted in the United States of America. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are quoted prices for similar assets in active markets (significant other observable inputs); Level 3 inputs are significant unobservable inputs. The City has the following recurring fair value measurements as of June 30, 2022:

Investment Type Totals 1 2
U.S. Treasury Obligations 15,928,800 $ 15,928,800 $ - $ U.S. Agency Securities:

FHLMC 1,517,918 - 1,517,918 FNMA 1,001,311 - 1,001,311
FHLB 306,517 - 306,517 Municipal Obligations 812,610 - 812,610 Medium-Term Notes 8,279,589 - 8,279,589 Negotiable Certificates of Deposit 250,035 - 250,035 Supranationals 504,568 - 504,568 Federal Agency Collateralized
Mortgage Obligation 904,057 - 904,057
Asset-Backed Securities 2,820,605 - 2,820,605 Totals 32,326,010 15,928,800 $ 16,397,210 $ Not Subject to Fair Value Measurement
Hierarchy:

Money Market Funds 323,941 Local Agency Investment Fund (LAIF) 91,928,674 Held by Bond Trustee:

Money Market Funds 12,605,929
Total Investments 137,184,554 $
Level
All investments classified in Level 2 of the fair value hierarchy are valued using specified fair market value factors or institutional bond quotes.

CITY OF SANTA FE SPRINGS

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
(48)
NOTE 3 LEASES RECEIVABLE
On March 1, 2003, the City (Landlord) and SFSHP Investors I, LLC and SFSHP Investors II, LLC (collectively, Tenant) entered into an Amended, Restated and Consolidated Ground Lease for 23 buildings as described in the lease agreement. The ground lease has an amended term of 64 years expiring on December 31, 2067. The annual rent as of July 1, 2021, was $824,000, and is paid in equal monthly installments. The annual rent increases based on defined increases in the Consumer Price Index every five years starting January 1, 2005, with a maximum increase of 35%.

In additional to the ground lease noted above, the City, acting as lessor, leases other land and buildings under long-term noncancelable lease agreements. The leases expire at various dates and provide for renewal options ranging up to 25 years. As of July 1, 2021, the City restated the financial statements to include $19,393,469 in leases receivables and deferred inflows of resources in the General Fund.

During the year ended June 30, 2022, the City recognized $437,806 and $736,400 in lease revenue and interest revenue, respectively, pursuant to all of its lease agreements.

Total Future minimum lease payments to be received under lease agreements are as follows:

Year Ending June 30, Principal Interest
2023 436,464 $ 738,961 $
2024 419,417 729,263 2025 231,708 720,259
2026 212,747 711,844
2027 220,052 703,301
2028-2032 1,137,036 3,379,924 2033-2037 1,276,293 3,142,224 2038-2042 1,608,982 2,857,081
2043-2047 1,898,239 2,499,716
2048-2052 2,007,814 2,112,185
2053-2057 2,451,534 1,668,465
2058-2062 2,993,314 1,126,685
2063-2067 3,654,827 465,172 2068-2072 407,236 4,764 Total 18,955,663 $ 20,859,844 $

CITY OF SANTA FE SPRINGS

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
(49)
NOTE 4 LOANS AND NOTES RECEIVABLE
The loans and notes receivable balance consist of the following:

Fund Balance
Governmental Funds
General Fund 302,727 $
Low and Moderate Income Housing Assets
Special Revenue Fund 1,435,308 Successor Agency Bond Funded Capital Projects Fund 110,147 Nonmajor Governmental Funds 19,250 Total Funds 1,867,432 $ The General Fund has loans and notes receivable in the amount of $20,329 representing monies advanced to City employees for home computer purchases. These loans are required to be repaid within two years and bear no interest. Notes receivable in the amount of $282,398 relate to monies advanced to Community Facilities District 2002-1 for infrastructure improvements. This loan bears an interest rate of 5.75% per annum.

The Low and Moderate Income Housing Assets Special Revenue Fund has 10 notes outstanding related to housing for qualified buyers. The loans are secured by a deed of trust and must be repaid upon sale or refinance of the home if such a transaction occurs within 45 years. A portion of the loan balance is forgiven each year beginning five years after issuance and is completely forgiven after 45 years. An allowance for the full amount of the loans has been recorded as the expectation is for the homeowners to keep the properties for the entire term of the agreement. The balance outstanding at June 30, 2022 is $822,510 with a net carrying value of zero. The loans do not accrue interest. Lastly, the Low and Moderate Income Housing Assets Special Revenue Fund has notes outstanding to Santa Fe Springs Housing Partners in the amount of $1,435,308 at June 30, 2022. The loan agreement calls for annual payments based on a calculation of residual receipts. The residual receipts are calculated based on the project revenues less approved expenses. The residual receipts payment is applied first to interest and then to principal. The outstanding principal accrues interest at a rate of 3%.

The Successor Agency Bond Funded Capital Projects Fund has a note receivable in the amount of $110,147 related to monies advanced by the former Commission to Community Facilities District 2004-1 for infrastructure improvements. This loan bears interest at a rate of

5.75% per annum.

CITY OF SANTA FE SPRINGS

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
(50)
NOTE 4 LOANS AND NOTES RECEIVABLE (CONTINUED)
The Nonmajor Governmental Funds have two notes receivable outstanding from homeowners through the CDBG housing program. The loans have zero interest and do not require repayment. The loans are secured by a deed of trust and must be repaid upon sale or refinance of the home. The balance outstanding at June 30, 2022, is $19,250.

NOTE 5 DUE FROM OTHER GOVERNMENTS
Due from other governments primarily consists of grants due from the Federal government, the State of California and the County of Los Angeles.

NOTE 6 INTERFUND ACTIVITY
The following is a summary of interfund transfers for the fiscal year ended June 30, 2022:

Prefunded Nonmajor Water
Capital Projects Governmental Enterprise
Transfers In: General Fund Fund Funds Fund Total
General Fund - $ - $ 1,520,399 $ 1,153,809 $ 2,674,208 $ Capital Improvement - 107,285 83,079 - 190,364 Prefunded Capital Projects Fund 11,800,000 - 23,726 - 11,823,726 Total 11,800,000 $ 107,285 $ 1,627,204 $ 1,153,809 $ 14,688,298 $ Transfers Out:

The General Fund transferred $11,800,000 into the Prefunded Capital Projects Funds to provide funding for current and future capital projects.

The Water Fund transferred $1,000,000 into the General Fund in connection with the lease agreement between the City and the Citys Water Utility Authority and $153,809 for NPDES street purposes and other computer replacements.

Prefunded Capital Projects Fund transferred $107,285 into Capital Improvement Fund for cost related to a capital project.

Nonmajor Governmental Funds transferred $1,520,399 into the General Fund for various purposes including eligible expenditures incurred related to public safety, Gas Tax, Metro Grants, Art in Public Places activities, $83,079 into Capital Improvement and $23,726 into the Prefunded Capital Projects Fund for costs incurred related to capital projects.

CITY OF SANTA FE SPRINGS

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
(51)
NOTE 6 INTERFUND ACTIVITY (CONTINUED)
Due to/from other funds at June 30, 2022, were as follows:

Capital Nonmajor
General Improvement Governmental
Due from Fund Fund Funds Total
General Fund - $ 1,618,891 185,756 1,804,647 $
Nonmajor Governmental Funds 1,901 - - 1,901 Total 1,901 $ 1,618,891 $ 185,756 $ 1,806,548 $ Due to
The due to/from other funds balances resulted from reimbursable expenditures occurring while the revenues with which to reimburse those expenditures had not yet been received.

All balances are expected to be reimbursed within the subsequent year.

Advances from other funds and advances to other funds at June 30, 2022, consist of loans as follows:

Advances from
Low and
Moderate
Income Housing
Advances to Assets Fund
General Fund 1,437,861 $
An advance payable/receivable was set up between the General Fund and the Low and Moderate Income Housing Assets Fund (Housing Fund) to account for costs originally charged to the Housing Fund but later determined to belong to the General Fund. The advance does not bear interest. Currently, there is no date set for the repayment of the advance.

CITY OF SANTA FE SPRINGS

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
(52)
NOTE 7 CAPITAL ASSETS
The following is a summary of changes in capital assets for the year ended June 30, 2022:

Balance Balance
June 30, 2021 Additions Deletions June 30, 2022
Governmental Activities:

Capital Assets, not Being Depreciated/Amortized:

Land 56,295,501 $ - $ - $ 56,295,501 $
Construction in Process 5,231,072 4,730,649 5,231,073 4,730,648 Total Capital Assets not Being Depreciated/Amortized 61,526,573 4,730,649 5,231,073 61,026,149 Capital Assets, Being Depreciated/Amortized:

Buildings 34,208,518 - - 34,208,518
Improvements 26,622,980 4,890,978 - 31,513,958
Equipment 16,772,878 575,102 719,659 16,628,321
Infrastructure 162,640,314 - - 162,640,314 Right-to-Use Leased Equipment - 454,612 - 454,612 Total Capital Assets, Being DepreciatedAmortized 240,244,690 5,920,692 719,659 245,445,723 Less Accumulated Depreciation/Amortization:

Buildings 15,007,492 649,758 - 15,657,250
Improvements 19,934,113 891,570 - 20,825,683
Equipment 11,896,244 1,065,744 719,659 12,242,329
Infrastructure 87,215,368 4,559,076 - 91,774,444
Right-to-Use Leased Equipment - 47,355 - 47,355 Total Accumulated Depreciation/ Amortization 134,053,217 7,213,503 719,659 140,547,061 Total Capital Assets, Being Depreciated/Amortized, Net 106,191,473 (1,292,811) - 104,898,662 Government Activities Capital Assets, Net 167,718,046 $ 3,437,838 $ 5,231,073 $ 165,924,811 $

CITY OF SANTA FE SPRINGS

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
(53)
NOTE 7 CAPITAL ASSETS (CONTINUED)
Balance Balance
June 30, 2021 Additions Deletions June 30, 2022
Business-Type Activities:

Capital Assets, not Being Depreciated/Amortized:

Land and Water Rights 3,384,974 $ - $ - $ 3,384,974 $
Construction in Process 4,990,305 5,287 - 4,995,592 Total Capital Assets not Being Depreciated/Amortized 8,375,279 5,287 - 8,380,566 Capital Assets, Being Depreciated/Amortized:

Source of Supply Plant 4,622,244 - - 4,622,244 Transmission and Distribution Plant 37,585,159 - - 37,585,159 Pumping and Treatment Plant 111,016 - - 111,016 General Plant 1,096,135 - - 1,096,135 Right-to-Use Leased Equipment - 18,942 - 18,942 Total Capital Assets, Being Depreciated/Amortized 43,414,554 18,942 - 43,433,496 Less Accumulated Depreciation/Amortization:

Source of Supply Plant 2,556,273 87,837 - 2,644,110 Transmission and Distribution Plant 21,715,288 556,098 - 22,271,386 Pumping and Treatment Plant 105,641 2,492 - 108,133 General Plant 1,096,135 - - 1,096,135 Right-to-Use Leased Equipment - 1,894 - 1,894 Total Accumulated Depreciation/ Amortization 25,473,337 648,321 - 26,121,658 Total Capital Assets, Being Depreciated/Amortized, Net 17,941,217 (629,379) - 17,311,838 Water Utility Capital Assets, Net 26,316,496 $ (624,092) $ - $ 25,692,404 $ Depreciation expense was charged to functions/programs of the primary government as follows:

Governmental Business-Type
Activities Activities
General Government 384,655 $ - $
Public Safety 969,394 - Community Development 67,671 - Transportation 4,843,114 - Culture and Leisure 700,772 - Human Services 247,897 - Water Utility 648,321 Total Governmental Activities 7,213,503 $ 648,321 $

CITY OF SANTA FE SPRINGS

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
(54)
NOTE 8 LONG-TERM LIABILITIES
The following is a summary of changes in long-term liabilities for the fiscal year ended June 30, 2022:

Balance Balance Due Within
June 30, 2021 Additions Reductions June 30, 2022 One Year Governmental Activities:

Direct Borrowing - Notes Payable:

Fire Equipment 3,306,000 $ - $ 448,199 $ 2,857,801 $ 455,998 $ Fire Air and Light Vehicle 263,491 - 85,430 178,061 87,808 Motorola Radios 2018 198,886 - 97,497 101,389 101,391 Lease Payable - 454,612 43,889 410,723 88,808 Total 3,768,377 $ 454,612 $ 675,015 $ 3,547,974 $ 734,005 $ Business-Type Activities:

Water Revenue Bonds Payable:
2013 Series A 6,890,000 $ - $ - $ 6,890,000 $ - $
2018 Subordinate Bonds 1,025,000 - 205,000 820,000 210,000 Issuance Discount/Premiums (125,304) - 5,967 (119,337) - Lease Payable - 18,942 1,829 17,113 3,700 Total 7,789,696 $ 18,942 $ 212,796 $ 7,607,776 $ 213,700 $ The total annual debt service requirements to maturity on bonds and loans are as follows:

Year Ending June 30, Principal Interest
2023 645,197 $ 58,732 $
2024 554,185 44,304 2025 472,005 33,719
2026 480,218 25,506
2027 488,573 17,150
2028 497,073 8,649 Total 3,137,251 $ 188,060 $
Year Ending June 30, Principal Interest
2023 210,000 $ 276,036 $
2024 215,000 271,017 2025 220,000 265,878
2026 240,000 260,620
2026 300,000 254,488
2028-2032 1,655,000 1,118,688 2033-2037 1,970,000 801,563 2038-2042 2,370,000 396,300 2043-2045 530,000 21,200 Total 7,710,000 $ 3,665,790 $
Governmental Activities
Notes Payable
Business-Type Activities
Revenue Bonds

CITY OF SANTA FE SPRINGS

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
(55)
NOTE 8 LONG-TERM LIABILITIES (CONTINUED)
Governmental Activities
Fire Equipment Note Payable
In November 2020, the City entered into a financed purchase agreement for $3,306,000 with Bank of America to purchase a fire engine and fire equipment. Payments are due annually in the amount of $505,724 on November 17 each year at an annual interest rate of 1.74% with the lease expiring on November 17, 2027. The current balance outstanding for this note payable is $2,857,801.

Fire Air & Light Vehicle Note Payable
In September 2017, the City entered into a financed purchase agreement for $598,911 with Community First National Bank to purchase an Air & Light Vehicle for the Fire department.

Payments are due annually in the amount of $92,765 on September 1, each year at an annual interest rate of 2.73%; with the lease expiring on September 1, 2023. The current balance outstanding for this note payable is $178,061.

Motorola Radios Note Payable
In November 2018, the City entered into a financed purchase agreement for $488,231 with Community First National Bank to purchase Motorola radios for the Police department.

Payments are due annually in the amount of $105,440 on November 20, each year at an annual interest rate of 3.92%; with the lease expiring on November 20, 2022. The current balance outstanding for this note payable is $101,389.

Lease Payable
The City leases equipment under a noncancelable lease agreement. A portion of this lease is allocated to the Water Fund The lease expires in 2027 and does not have a renewal option. Total future minimum lease payments are as follows:

Year Ending June 30, Principal Interest Principal Interest 2023 88,808 $ 5,752 $ 3,700 $ 240 $
2024 90,198 4,362 3,758 182 2025 91,609 2,950 3,817 123 2026 93,043 1,517 3,877 63 2027 47,065 213 1,961 9 Total 410,723 $ 14,794 $ 17,113 $ 617 $ Governmental Activities Business-Type Activities
Business-Type Activities
Water Refunding Revenue Bonds, 2013
In May 2013, in order to take advantage of a low interest rate market and to capture economic savings, the City currently refunded the 2003 Water Revenue Bond Series A.

The 2013 Revenue Bonds were issued to (1) provide funds for the refunding of the PFAs 2003 Water Revenue Bond Series A; (2) finance improvements to the water utility enterprise; (3) fund a deposit to a debt service reserve fund for the 2013 bonds; and (4) pay the costs of issuance associated with the issuance and sale of the 2013 Revenue Bonds.

CITY OF SANTA FE SPRINGS

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
(56)
NOTE 8 LONG-TERM LIABILITIES (CONTINUED)
Business-Type Activities (Continued)
Water Refunding Revenue Bonds, 2013 (Continued)
The 2013 Revenue Bonds are due from 2026 through 2043 in annual principal installments of $65,000 to $530,000. Interest rates range from 3% to 4% and interest is payable semiannually on November 1 and May 1. The total outstanding principal as of June 30, 2022, is $6,890,000.

The 2013 Revenue Bonds are payable from and secured by net revenues of the Citys water system and facilities. The City has covenanted in the Installment Sale Agreement to set rates and charges for water services for its customers sufficient to provide net revenues each fiscal year equal to at least 120% of the debt service due in such fiscal year. Net revenue is determined by the gross revenues received during such period minus the amount required to pay all operation and maintenance costs becoming payable during such period.

Net revenue pledged to these bonds for the current year was $4,320,997 against debt service payments of $256,438.

If any event of default shall occur, then the Trustee may, and at the written direction of the owners of a majority in aggregate principal amount of the 2013 Revenue Bonds then outstanding, shall declare the principal of the 2013 Revenue Bonds, together with the accrued interest thereon, to be due and payable immediately.

Water Refunding Revenue Bonds, 2018
In January 2018, in order to take advantage of a low interest rate market and to capture economic savings, the City currently refunded the 2005 Water Revenue Bond Series A.

The 2018 Revenue Bonds were issued to (1) provide funds for the refunding of the PFAs 2005 Water Revenue Bond Series A; (2) finance improvements to the water utility enterprise; and (3) pay the costs of issuance associated with the issuance and sale of the 2018 Revenue Bonds.

The 2018 Revenue Bonds are due from 2018 through 2026 in annual principal installments of $175,000 to $220,000. The interest rate is 2.39% and interest is payable semiannually on May 1 and November 1. The total outstanding principal as of June 30, 2022, is $820,000.

The 2018 Revenue Bonds are payable from and secured by net revenues of the Citys water system and facilities on a subordinate basis to the 2013 Revenue Bonds. Net revenue is determined by the gross revenues received during such period minus the amount required to pay all operation and maintenance costs becoming payable during such period. Net revenue pledged to these bonds for the current year was $4,320,997 against debt service payments of $229,498.

If any event of default shall occur, then the Trustee may, and at the written direction of the owners of a majority in aggregate principal amount of the 2018 Revenue Bonds then outstanding, shall declare the principal of the 2018 Revenue Bonds, together with the accrued interest thereon, to be due and payable immediately.

CITY OF SANTA FE SPRINGS

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
(57)
NOTE 9 COMPENSATED ABSENCES
Compensated absences consist of amounts due to employees for earned but unused vacation and sick leave balances. Compensated absences are primarily liquidated from the General Fund.

Balance Balance Due Within
June 30, 2021 Additions Reductions June 30, 2022 One Year Governmental Activities 2,555,206 $ 223,795 $ 879,148 $ 1,899,853 $ 440,000 $ Business-Type Activities 348,438 30,449 119,884 259,003 60,000 Total Compensated Absences 2,903,644 $ 254,244 $ 999,032 $ 2,158,856 $ 500,000 $ NOTE 10 CALIFORNIA JOINT POWERS INSURANCE AUTHORITY INSURANCE PROGRAM Description of Self-Insurance Pool Pursuant to Joint Powers Agreement The City of Santa Fe Springs is a member of the California Joint Powers Insurance Authority (Authority). The Authority is composed of 124 California public entities and is organized under a joint powers agreement pursuant to California Government Code §6500 et seq. The purpose of the Authority is to arrange and administer programs for the pooling of selfinsured losses, to purchase excess insurance or reinsurance, and to arrange for group purchased insurance for property and other lines of coverage. The California JPIA began covering claims of its members in 1978. Each member government has an elected official as its representative on the board of directors. The board operates through a nine-member executive committee.

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

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

CITY OF SANTA FE SPRINGS

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
(58)
NOTE 10 CALIFORNIA JOINT POWERS INSURANCE AUTHORITY INSURANCE PROGRAM (CONTINUED)
Primary Self-Insurance Programs of the Authority (Continued) Primary Liability Program (Continued)
The overall coverage limit for each member, including all layers of coverage, is $50 million per occurrence. Subsidence losses have a $50 million per occurrence limit. The coverage structure is composed of a combination of pooled self-insurance, reinsurance, and excess insurance. Additional information concerning the coverage structure is available on the Authoritys website: https://cjpia.org/coverage/risk-sharing-pools/.

Primary Workers Compensation Program
Claims are pooled separately between public safety (police and fire) and general government exposures. (1) The payroll of each member is evaluated relative to the payroll of other members. A variable credibility factor is determined for each member, which establishes the weight applied to payroll and the weight applied to losses within the formula. (2) The first layer of losses includes incurred costs up to $75,000 for each occurrence and is evaluated as a percentage of the pools total incurred costs within the first layer. (3) The second layer of losses includes incurred costs from $75,000 to $200,000 for each occurrence and is evaluated as a percentage of the pools total incurred costs within the second layer. (4) Incurred costs from $200,000 to statutory limits are distributed based on the outcome of cost allocation within the first and second loss layers.

For 2021-22 the Authoritys pooled retention is $1 million per occurrence, with reinsurance to statutory limits under California Workers Compensation Law. Employers Liability losses are pooled among members to $1 million. Coverage from $1 million to $5 million is purchased through reinsurance policies, and Employers Liability losses from $5 million to $10 million are pooled among members.

Purchased Insurance
Pollution Legal Liability Insurance
The City of Santa Fe Springs participates in the pollution legal liability insurance program which is available through the Authority. The policy covers sudden and gradual pollution of scheduled property, streets, and storm drains owned by the City of Santa Fe Springs.

Coverage is on a claims-made basis. There is a $250,000 deductible. The Authority has an aggregate limit of $20 million.

Property Insurance
The City of Santa Fe Springs City of Santa Fe Springs participates in the all-risk property protection program of the Authority. This insurance protection is underwritten by several insurance companies. City of Santa Fe Springs property is currently insured according to a schedule of covered property submitted by the City of Santa Fe Springs to the Authority.

City of Santa Fe Springs property currently has all-risk property insurance protection in the amount of $120,456,866. There is a $10,000 deductible per occurrence except for nonemergency vehicle insurance which has a $2,500 deductible.

CITY OF SANTA FE SPRINGS

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
(59)
NOTE 10 CALIFORNIA JOINT POWERS INSURANCE AUTHORITY INSURANCE PROGRAM (CONTINUED)
Purchased Insurance (Continued)
Earthquake and Flood Insurance
The City of Santa Fe Springs purchases earthquake and flood insurance on a portion of its property. The earthquake insurance is part of the property protection insurance program of the Authority. City of Santa Fe Springs property currently has earthquake protection in the amount of $55,644,900. There is a deductible of 5% per unit of value with a minimum deductible of $100,000.

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

Adequacy of Protection
During the past three fiscal years, none of the above programs of protection experienced settlements or judgments that exceeded pooled or insured coverage. There were also no significant reductions in pooled or insured liability coverage in 2021-22.

NOTE 11 PENSION PLAN OBLIGATIONS
a. General Information About the Pension Plan
Plan Description
The City contributes to the California Public Employees Retirement System (PERS), an agent multiple-employer defined benefit pension plan for the miscellaneous employees and a cost-sharing multiple-employer public employee defined benefit pension plan for the public safety employees that acts as a common investment and administrative agent for participating public entities within the state of California. PERS provides retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. All full-time employees are eligible to participate in PERS.

Part-time employees are not eligible to participate in PERS retirement system but participate in a defined contribution plan. Benefit provisions for the Plans are established by State Statutes and City resolution. Copies of PERS annual financial report may be obtained from its executive office: 400 P Street, Sacramento, California 95814.

Benefits Provided
CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of fulltime employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for nonduty disability benefits after 10 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees Retirement Law.

CITY OF SANTA FE SPRINGS

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JUNE 30, 2022
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NOTE 11 PENSION PLAN OBLIGATIONS (CONTINUED)
a. General Information About the Pension Plan (Continued) Benefits Provided (Continued)
The Plan provisions and benefits for the fiscal year ended June 30, 2022, are summarized as follows:

Tier 1* Tier 2* PEPRA
November 19, 2012
Prior to but prior to January 1, 2013
Hire Date November 19, 2012 January 1, 2013 and After
Benefit Formula 2.7%@55 2.0%@55 2.0%@62
Benefit Vesting Schedule 5 years service 5 years service 5 years service Benefit Payments monthly for life monthly for life monthly for life Minimum Retirement Age 50 50 52
Monthly Benefits, as a % of 2.000% - 2.700%, 1.426% - 2.418%, 1.000% - 2.500%, Eligible Compensation 50 yrs - 55+ yrs, 50 yrs - 63+ yrs, 52 yrs - 67+ yrs, Required Employee Contribution Rates 8.00% 7.00% 6.50%
Required Employer Contribution Rates 11.350% 11.350% 6.450% Tier 1* Tier 2* PEPRA
November 19, 2012
Prior to but prior to January 1, 2013
Hire Date November 19, 2012 January 1, 2013 and After
Benefit Formula 3.0%@50 3.0%@55 2.7%@57
Benefit Vesting Schedule 5 years service 5 years service 5 years service Benefit Payments monthly for life monthly for life monthly for life Minimum Retirement Age 50 50 50
Monthly Benefits, as a % of 2.400% - 3.000%, 2.000% - 2.700%, Eligible Compensation 3.000%, 50+ yrs 50 yrs - 55+ yrs, 50 yrs - 57+ yrs, Required Employee Contribution Rates 9.000% 9.000% 13.750% Required Employer Contribution Rates 25.590% 22.470% 13.980% *Plan is closed to new entrants. The PEPRA plan was enacted for new members hired after January 1, 2013.

Miscellaneous Plan
Safety Cost-Sharing Rate Plans
Employees Covered
For the measurement period ended June 30, 2021, the following employees were covered by the benefit terms of the Miscellaneous Plan:

Number of
Description Members
Active Members 116 Transferred Members 36 Terminated Members 29 Retired Members and Beneficiaries 222 Total 403

CITY OF SANTA FE SPRINGS

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JUNE 30, 2022
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NOTE 11 PENSION PLAN OBLIGATIONS (CONTINUED)
a. General Information About the Pension Plan (Continued) Contribution Description
Section 20814(c) of the California Public Employees Retirement Law requires that the employer contribution rates for all public employers are determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through CalPERS annual actuarial valuation process. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. City contribution rates may change if plan contracts are amended. Payments made by the employer to satisfy contribution requirements that are identified by the pension plan terms as plan member contributions requirements are classified as plan member contributions. The liability for governmental activities is primarily liquidated from the general fund and the liability for business-type activities is liquidated from the water enterprise fund.

Employer contributions for the miscellaneous and safety plans for fiscal year ended June 30, 2022, was $7,068,663 and $5,345,973, respectively. b. Net Pension Liability
The net pension liability is measured as the total pension liability, less the pension plans fiduciary net position. The net pension liability of each of the Plans is measured as of June 30, 2021, using an annual actuarial valuation as of June 30, 2020 rolled forward to June 30, 2021, using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is shown on the subsequent page.

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NOTE 11 PENSION PLAN OBLIGATIONS (CONTINUED)
b. Net Pension Liability (Continued)
Actuarial Methods and Assumptions Used to Determine Total Pension Liability The total pension liabilities were determined using the following actuarial assumptions:

Miscellaneous Safety
Valuation Date June 30, 2020 June 30, 2020
Measurement Date June 30, 2021 June 30, 2021
Actuarial Cost Method Entry-Age Normal Entry-Age Normal Cost Method Cost Method
Actuarial Assumptions:

Discount Rate 7.15% 7.15%
Inflation 2.50% 2.50%
Projected Salary Increase (1) (1)
Mortality Rate Table (2) (2)
Post Retirement Benefit Increase (3) (3)
Varies by entry age and service.
(1) Varies by entry age and service.
(2) The mortality table used was developed based on CalPERS-specific data. The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre-retirement and Post-retirement mortality rates includes 15 years of projected mortality improvement using 90% of Scale MP-2016 published by the Society of Actuaries. For more details on this table, please refer to to the CalPERS Experience Study and Review of Actuarial Assumptions report from (3) The lesser of contract COLA or 2.50% until Purchasing Power Protection Allowance Floor on purchasing power applies, 2.50% thereafter.

December 2017 that can be found on the CalPERS website.

Long-Term Expected Rate of Return
The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.

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NOTE 11 PENSION PLAN OBLIGATIONS (CONTINUED)
b. Net Pension Liability (Continued)
Long-Term Expected Rate of Return (Continued)
In determining the long term expected rate of return, CalPERS took into account both short term and long term market return expectations as well as the expected pension fund cash flows. Using historical returns of all the funds asset classes, expected compound (geometric) returns were calculated over the short term (first 10 years) and the long-term (11+ years) using a building block approach. Using the expected nominal returns for both short term and long term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the rounded single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short term and long term returns. The expected rate of return was then set equal to the single equivalent rate calculated above and adjusted to account for assumed administrative expenses. The expected real rates of return by asset class are as follows:

Assumed Real Return Real Return
Asset Years Years
Asset Class (a) Allocation 1 - 10 (b) 11+ (c)
Global Equity 50.00 % 4.80 % 5.98 %
Fixed Income 28.00 1.00 % 2.62 %
Inflation Assets - 0.77 % 1.81 %
Private Equity 8.00 6.30 % 7.23 %
Real Assets 13.00 3.75 % 4.93 %
Liquidity 1.00 - % (0.92)%
Total 100.00 %
(a) In the CalPERS Annual Report, Fixed Income is included in Global Debt Securities; Liquidity is included in Short-term Investments; Inflation Assets are included in both Global Equity Securities and Global Debt Securities
(b) An expected inflation of 2.00% used for this period (c) An expected inflation of 2.92% used for this period Discount Rate
The discount rate used to measure the total pension liability was 7.15%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plans fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

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NOTE 11 PENSION PLAN OBLIGATIONS (CONTINUED)
b. Net Pension Liability (Continued)
Subsequent Events
On July 12, 2021, CalPERS reported a preliminary 21.3% net return on investments for fiscal year 2020-2021. Based on the thresholds specified in CalPERS Funding Risk Mitigation policy, the excess return of 14.3% prescribes a reduction in investment volatility that corresponds to a reduction in the discount rate used for funding purposes of 0.20%, from 7.00% to 6.80%. Since CalPERS was in the final stages of the four-year Asset Liability Management (ALM) cycle, the board elected to defer any changes to the asset allocation until the ALM process concluded, and the board could make its final decision on the asset allocation in November 2021.

On November 17, 2021, the board adopted a new strategic asset allocation. The new asset allocation along with the new capital market assumptions, economic assumptions and administrative expense assumption support a discount rate of 6.90% (net of investment expense but without a reduction for administrative expense) for financial reporting purposes. This includes a reduction in the price inflation assumption from

2.50% to 2.30% as recommended in the November 2021 CalPERS Experience Study and Review of Actuarial Assumptions. This study also recommended modifications to retirement rates, termination rates, mortality rates and rates of salary increases that were adopted by the board. These new assumptions will be reflected in the GASB 68 accounting valuation reports for the June 30, 2022, measurement date.

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NOTE 11 PENSION PLAN OBLIGATIONS (CONTINUED)
c. Changes in the Net Pension Liability
The following table shows the changes in net pension liability recognized over the measurement period for the Miscellaneous Plan.

Total Plan Net Pension
Pension Fiduciary Liability
Liability Net Position (Asset)
Balance at June 30, 2020
(Measurement Date) $ 106,311,037 184,565,461 $ 78,254,424 $ Changes in the Year:

Service Cost 1,766,312 - 1,766,312
Interest on the Total Pension Liability 13,033,238 - 13,033,238 Differences Between Actual and Expected Experience 2,313,861 - 2,313,861 Contribution - Employer - 6,557,278 (6,557,278) Contribution - Employee - 911,222 (911,222) Net Investment Income - 24,174,117 (24,174,117) Administrative Expenses (106,198) 106,198 Benefit Payments, Including Refunds of Employee Contributions (10,958,843) (10,958,843) - Net Changes 20,577,576 6,154,568 (14,423,008) Balance at June 30, 2021 (Measurement Date) $ 126,888,613 190,720,029 $ 63,831,416 $ Increase (Decrease)
As of June 30, 2022, the City Safety Plan reported a net pension liability for its proportionate share of the net pension liability of the Plan as follows:

Proportionate
Share of Net
Pension Liability
Safety Plan 38,184,110 $
The Citys net pension liability for the Safety Plan is measured as the proportionate share of the net pension liability. The net pension liability of the Safety Plan is measured as of June 30, 2021, and the total pension liability for the Safety Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2020, rolled forward to June 30, 2021, using standard update procedures. The Citys proportion of the net pension liability was based on a projection of the Citys long-term share of contributions to the pension plan relative to the projected contributions of all participating employers, actuarially determined.

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NOTE 11 PENSION PLAN OBLIGATIONS (CONTINUED)
c. Changes in the Net Pension Liability (Continued)
The Citys proportionate share of the net pension liability for the Safety Plan as of measurement period ended June 30, 2020 and 2021, was as follows:

Safety Cost-Sharing Plan
Proportion - June 30, 2020 0.82961%
Proportion - June 30, 2021 1.08803%
Change - Increase (Decrease) 0.25842%
Safety Cost-Sharing Plan
Sensitivity of the Net Pension Liability to Changes in the Discount Rate The following presents the net pension liability of the Plans as of the measurement date, calculated using the discount rate of 7.15%, as well as what the net pension liability would be if it were calculated using a discount rate that is 1 percentage-point lower or 1 percentage-point higher than the current rate:

Discount Current Discount
Rate - 1% Discount Rate + 1%

6.15% 7.15% 8.15%
Miscellaneous Plan 86,377,418 $ 63,831,416 $ 44,959,620 $ Safety Plan 62,191,332 38,184,110 18,465,142 Total Net Pension Liability 148,568,750 $ 102,015,526 $ 63,424,762 $ Pension Plan Fiduciary Net Position
The plan fiduciary net position disclosed in the GASB 68 accounting valuation report may differ from the plan assets reported in the funding actuarial valuation report due to several reasons. First, for the accounting valuations, CalPERS must keep items such as deficiency reserves, fiduciary self-insurance and OPEB expense included as assets.

These amounts are excluded for rate setting purposes in the funding actuarial valuation.

In addition, differences may result from early Annual Comprehensive Financial Report closing and final reconciled reserves. Detailed information about each pension plans fiduciary net position is available in the separately issued CalPERS financial reports.

See CalPERS website for additional information.

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NOTE 11 PENSION PLAN OBLIGATIONS (CONTINUED)
d. Pension Expense and Deferred Outflows/Inflows of Resources Related to Pensions For the year ended June 30, 2022, the City recognized pension expense of $3,885,421 and $10,545,133 for the Miscellaneous and Safety Plan, respectively. At June 30, 2022, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Deferred Deferred
Outflows Inflows
of Resources of Resources
Pension Contributions Subsequent to
Measurement Date $ - 7,068,663 $
Differences Between Expected and
Actual Experience - 1,510,483 Net Differences Between Projected and Actual Earnings on Plan Investments - (12,169,042) Total 8,579,146 $ (12,169,042) $ Deferred Deferred
Outflows Inflows
of Resources of Resources
Pension Contributions Subsequent to
Measurement Date $ - 5,345,973 $
Difference Between Expected and
Actual Experiences 6,523,722 - Change in Assumptions - - Net Differences Between Projected and Actual Earnings on Plan Investments - (22,726,886) Change in Employer's Proportion 455,893 (125,642) Differences Between the Employer's Contributions and the Employer's Proportionate
Share of Contributions (3,131,576) - Total 12,325,588 (25,984,104) Total All Plans 20,904,734 $ (38,153,146) $ Miscellaneous Plan
Safety Plan
$7,068,663 and $5,345,973 reported in the Miscellaneous and Safety Plans, respectively, as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ending June 30, 2023.

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NOTE 11 PENSION PLAN OBLIGATIONS (CONTINUED)
d. Pension Expense and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Measurement Period Ending June 30, Miscellaneous Safety Total 2023 (2,205,609) $ (3,559,371) $ (5,764,980) $
2024 (2,208,626) (4,102,020) (6,310,646) 2025 (2,903,885) (5,088,976) (7,992,861) 2026 (3,340,438) (6,254,122) (9,594,560)
2027 - - - Thereafter - - - Total (10,658,558) $ (19,004,489) $ (29,663,047) $ Deferred Outflows/(Inflows) of Resources
e. Payable to the Pension Plans
At June 30, 2022, the City had no outstanding amount of contributions to the pension plans required for the year ended June 30, 2022.

NOTE 12 POSTEMPLOYMENT HEALTH CARE BENEFITS
The City provides an agent multiple-employer OPEB plan to retirees through the California Employers Retiree Benefit Trust (CERBT). Information on the plan is available from CalPERS on their website www.calpers.ca.gov.
a. Plan Description
The City contributes to the California Employers Retiree Benefit Trust (CERBT), an agent multiple-employer public employee defined postemployment benefit plan. The City provides retiree medical benefits under the PERS health plan, which provides medical insurance benefits to eligible retirees and their beneficiaries in accordance with various labor agreements. Copies of the PERS annual financial report may be obtained from the PERS Executive Office, 400 P Street, Sacramento, California 95814.

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NOTE 12 POSTEMPLOYMENT HEALTH CARE BENEFITS (CONTINUED) b. Eligibility and Employees Covered
Employees are eligible for retiree health benefits if they retire from the City on or after age 50 (unless disabled) with five years or service and are eligible for a PERS pension.

The benefits are available only to employees who retire from the City. At measurement date ended June 30, 2021, the benefit terms covered the following employees:

Management Miscellaneous Fire Total
Retirees and Beneficiaries
Receiving Benefits 50 103 85 238 Retirees and Beneficiaries Entitled to but not yet Receiving Benefits - 9 2 11 Active Plan Members 34 79 51 164 Total 84 191 138 413 These amounts do not reflect current retirees not enrolled in the PERS health plan that are eligible to enroll in the plan at a later date.
c. Contributions
The City currently contributes the full Actuarially Determined Contribution (ADC) to the CERBT OPEB trust, in addition to paying benefit payments outside the trust. For the fiscal year ended June 30, 2022, the Citys contributed $609,000 to the CERBT, paid $2,849,828 for current premiums, paid $7,261 of nontrust admin expenses, and the estimated implied subsidy was $717,000, resulting in total contributions of $4,183,089. d. Investments
The CERBT was established for public agencies to pre-fund other postemployment benefit obligations. Employers may choose amount three different investment strategies.

The City of Santa Fe Springs has selected Strategy 1. Compared with CERBT Strategy 2 and Strategy 3, this portfolio consists of a higher percentage of equities than bonds and other assets. The following was the investment committee approved asset allocation targets as of October 1, 2018:

Target Expected Real
Asset Class Allocation Rate of Return
Global Equity 59.0 % 4.56 %
U.S. Fixed Income 25.0 0.78
TIPS 5.0 (0.08)
Commodities 3.0 1.22
REITs 8.0 4.06
Total 100.0 %

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JUNE 30, 2022
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NOTE 12 POSTEMPLOYMENT HEALTH CARE BENEFITS (CONTINUED) e. Net OPEB Liability
The Citys net OPEB liability was measured as of June 30, 2021 and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation as of June 30, 2021. A summary of the principal assumptions and methods used to determine the total OPEB liability is shown below.

Actuarial Cost Method Entry Age Normal
Actuarial Assumptions:

Contribution Policy City contributes full ADC
Discount Rate 6.25%
Inflation 2.50%
Salary Increases Aggregate - 2.75%
Merit - CalPERS 2000-2019 Experience Study
Healthcare Cost Trend Rates For 2023, 6.50% for Non-Medicare, 5.65% for Medicare (Non-Kaiser), and 4.60% for Medicare
(Kaiser); all decreasing to an ultimate rate of

3.75% in 2076
Mortality Rate Mortality Rate projected fully generational with Scale MP-2021
Mortality, Retirement, Disability,
Terminations CalPERS 2000-2019 Experience Study
The actuarial assumptions used in the June 30, 2021, valuation were based on a standard set of assumptions the actuary has used for similar valuations, modified as appropriate for the City.
f. Discount Rate
The discount rate used to measure the total OPEB liability was 6.25%. The projection of cash flows used to determine the discount rate assumed that City contributions will be made at rates equal to the actuarially determined contribution rates.

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NOTE 12 POSTEMPLOYMENT HEALTH CARE BENEFITS (CONTINUED) g. Changes in the Net OPEB
The changes in the Net OPEB Liability for the Plan are as follows:

Total Plan Net OPEB
OPEB Fiduciary Liability (Asset)
Liability (a) Net Position (b) (c)=(a)-(b)
Balance at June 30, 2020
(Measurement Date) $ 21,985,562 61,376,067 $ 39,390,505 $ Changes Recognized for the
Measurement Period:

Service Cost 978,905 - 978,905
Interest on Total OPEB Liability 4,094,287 - 4,094,287 Changes of Assumptions 572,595 - 572,595 Difference Between Actual vs. Expected Experience (4,911,693) - (4,911,693) Contributions-Employer - 5,011,731 (5,011,731) Net Investment Income - 6,178,247 (6,178,247)
Benefit Payments, Including Refunds
of Employee Contributions (3,397,735) (3,397,735) - Administrative Expense - (15,517) 15,517 Net Changes 7,776,726 (2,663,641) (10,440,367) Balance at June 30, 2021 (Measurement Date) $ 29,762,288 58,712,426 $ 28,950,138 $ (1) Contributions-employer amount includes implicit subsidy associated with benefits paid Increase (Decrease)
h. Change in Assumptions
Change in assumptions included the following: discount rate was updated based on newer capital market assumptions; Medicare Advantage plan implied subsidy excluded; updated to CalPERS 2000-2019 Experience Study; decreased inflation, which reduced discount rate, medical trend, and salary increases; decreased medical trend frate for Kaiser Senior Advantage; and mortality improvement scale was updated to Scale MP-2021.
i. Subsequent Events
CalPERS approved new CERBT asset allocations in March 2022. This is not expected to impact the expected long-term rate of return assumption for CERBT Strategy 1.

Effective January 1, 2022, the Miscellaneous cap is set equal to the Kaiser Family non-Medicare premiums, and the Fire cap is set equal to the PORACmul Family non-Medicare premium (CalPERS Region 3). The expected impact is an increase to the total OPEB liability of about $4 million.

CITY OF SANTA FE SPRINGS

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JUNE 30, 2022
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NOTE 12 POSTEMPLOYMENT HEALTH CARE BENEFITS (CONTINUED) j. Sensitivity of the Net OPEB Liability to Changes in the Discount Rate The following presents the net OPEB liability, as well as what the net OPEB liability would be if it were calculated using a discount rate that is 1 percentage-point lower or 1 percentage-point higher than the current discount rate:

Discount Current Discount
Rate -1% Discount Rate + 1%

5.25% 6.25% 7.25%
Net OPEB Liability (Asset) 36,479,705 $ 28,950,138 $ 22,737,713 $ k. Sensitivity of the Net OPEB Liability to Changes in the Healthcare Cost Trend Rates The following presents the net OPEB liability, as well as what the net OPEB liability would be if it were calculated using healthcare cost trend rates that are 1-percentagepoint lower or 1-percentage-point higher than the current healthcare cost trend rates:

Trend Rate -1% Trend Rate Trend Rate + 1%

5.50% / 4.65% 6.50% / 5.65% 7.50% / 6.65%
/ 3.60% / 4.60% / 5.60%
Net OPEB Liability (Asset) 22,373,059 $ 28,950,138 $ 36,952,308 $ l. Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB For the year ended June 30, 2022, the City recognized OPEB income of $72,648. At June 30, 2022, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:

Deferred Deferred
Outflows Inflows
of Resources of Resources
City Contributions Made Subsequent to
Measurement Date 4,183,089 $ - $
Differences Between Expected and Actual
Experience - (6,345,832) Changes of Assumptions 455,739 (749,754) Net Difference Between Projected and Actual Earnings on Plan Investments - (3,391,084) Total 4,638,828 $ (10,486,670) $

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NOTE 12 POSTEMPLOYMENT HEALTH CARE BENEFITS (CONTINUED) m. Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB (Continued)
$4,183,089 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of total OPEB liability in the year ending June 30, 2023. Other amounts reported as deferred outflows and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows:

Deferred
Outflows/
(Inflows) of
Year Ending June 30, of Resources
2023 (3,548,570) $
2024 (2,876,194) 2025 (1,878,097)
2026 (1,728,070)
2027 - Thereafter -
Total (10,030,931) $
NOTE 13 DEFINED CONTRIBUTION PLAN
Employees hired by the City on a part-time, seasonal or temporary basis whose wages do not qualify for Social Security deductions or membership in a qualified pension plan are required to participate in the Part-Time, Seasonal and Temporary (PST) Employee Retirement Program. The City administers PST, an eligible 457 plan under the Internal Revenue Code. Employees mandatory PST contributions amount to 7.5% of gross wages on a pretax basis. Employees are fully vested upon enrollment and are entitled to 100% of the account upon separation from the City. The City does not make any contributions to the PST. The PST assets are held in a trust account for the sole benefit of the employees and their beneficiaries and have been excluded from the Citys reported assets accordingly.

NOTE 14 COMMITMENTS AND CONTINGENCIES
Claims
Various claims for personal injury and for property damage are pending against the City. It is the opinion of the City Attorney that any liability arising out of such claims is adequately covered under insurance agreements.

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(74)
NOTE 15 CONDUIT OBLIGATION DEBT
The City issued $2,315,000 of Heritage Springs Assessment District Improvement Bonds on August 9, 2001. These bonds are not included in the accompanying financial statements as neither the faith and credit nor the taxing powers of the City have been pledged to the payment of the obligations. The outstanding balance at June 30, 2022, is $1,240,000.

NOTE 16 SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY
On December 29, 2011, the California Supreme Court upheld Assembly Bill 1X 26 (the Bill) that provides for the dissolution of all redevelopment agencies in the State of California. This action impacted the reporting entity of the City of Santa Fe Springs (City) that previously had reported a redevelopment agency within the reporting entity of the City as a blended component unit. The Bill provides that upon dissolution of a redevelopment agency, either the city or another unit of local government will agree to serve as the successor agency to hold the assets until they are distributed to other units of state and local government. As of February 1, 2012, the City Council, by operation of law, became the Successor Agency to the Community Development Commission for the City of Santa Fe Springs (Successor Agency) in accordance with the Bill.

After enactment of the law, which occurred on June 28, 2011, redevelopment agencies in the State of California cannot enter into new projects, obligations or commitments. Subject to the control of a newly established oversight board, remaining assets can only be used to pay enforceable obligations in existence at the date of dissolution (including the completion of any unfinished projects that were subject to legally enforceable contractual commitments). Successor agencies will only be allocated revenue in the amount that is necessary to pay the estimated annual installment payments on enforceable obligations of the former redevelopment agency until all enforceable obligations of the prior redevelopment agency have been paid in full and all assets have been liquidated.

Loans and Notes Receivable
The loans and notes receivable balance in the Successor Agency Fund consist of an installment note in the amount of $61,438 relate to an advance of former Commission monies to property owners to clean up hazardous materials on private property. This note bears an interest rate of 9.0% per annum.

Capital Assets
Additions and deletions in the Successor Agencys capital assets were as follows:

Balance Balance
June 30, 2021 Additions Reductions June 30, 2022
Capital Assets, not Being Depreciated:

Land 415,530 $ - $ - $ 415,530 $
Total Capital Assets,
Not Being Depreciated 415,530 $ - $ - $ 415,530 $

CITY OF SANTA FE SPRINGS

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
(75)
NOTE 16 SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT

AGENCY (CONTINUED)
Long-Term Liabilities
The following is a summary of changes in long-term liabilities for the fiscal year ended June 30, 2022:

Balance Balance Due Within
June 30, 2021 Additions Reductions June 30, 2022 One Year Private-Purpose Activities:

Consolidated Redevelopment
Project Tax Allocation Bonds:
2006 Issue 20,626,370 $ - $ 1,853,399 $ 18,772,971 $ 1,745,198 $ Accreted Interest on
Capital Appreciation Bonds 18,843,111 - 37,122 18,805,989 - 2016 Refunding Issue 6,875,000 - 2,670,000 4,205,000 2,275,000 2017 Refunding Issue 6,645,000 - 3,285,000 3,360,000 3,360,000 Issuance Discounts/Premiums (76,558) - 15,312 (61,246) - Direct Borrowings:

Tax Increment Loan from
Los Angeles County 6,455,251 33,799 196,352 6,292,698 - Total 59,368,174 $ 33,799 $ 8,057,185 $ 51,375,412 $ 7,380,198 $ Year Ending June 30, Principal Interest
2023 7,830,198 $ 96,927 $
2024 6,359,492 24,572 2025 4,998,770 8,381 2026 4,040,748 - 2027 2,069,997 - 2028-2030 1,038,766 - Total 26,337,971 129,880 $ Cumulative Accretion Interest
on Capital Appreciation Bonds 18,805,989 Total Principal, June 30, 2022 45,143,960 $ Tax Allocation Bonds
Consolidated Redevelopment Project 2006 Tax Allocation Bonds In December 2006, the former Commission issued serial bonds (Series A) in the amount of $27,658,493. Series A bonds are structured with a mix of current interest bonds and accreted interest on capital appreciation bonds. Serial bonds totaling $4,710,000 are payable annually on each September 1 ranging from $10,000 to $2,195,000 through September 1, 2020. Interest is payable on September 1 and March 1 in each year at rates of

3.75% to 5.0% per annum. Capital appreciation bonds have serial maturities in 2020 through 2028 payable annually on September 1 each year with a value at maturity ranging from $920,000 to $11,805,000. The current interest bonds are optionally callable at par on September 1, 2016. The capital appreciation bonds are noncallable. The serial bonds were fully refunded in fiscal year 2016-17 with the issuance of the 2016 Subordinate Tax Allocation Refunding Bonds.

CITY OF SANTA FE SPRINGS

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
(76)
NOTE 16 SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT

AGENCY (CONTINUED)
Consolidated Redevelopment Project 2006 Tax Allocation Bonds (Continued) In December 2006, the former Commission issued serial bonds (Series B) in the amount of $18,760,000. Series B bonds have current interest term bonds of $5,230,000 and $13,530,000 due September 1, 2011 and September 1, 2018, respectively. The interest rates range from 5.18% to 5.35%. The bonds are optionally callable at par on September 1, 2016. The serial bonds were fully refunded in fiscal year 2016-17 with the issuance of the 2016 Subordinate Tax Allocation Refunding Bonds.

Upon the dissolution of the former redevelopment agency at February 1, 2012, the outstanding balance of the bonds was transferred to the Successor Agency. Upon dissolution, former tax increment revenues are deposited into the Los Angeles County Redevelopment Property Tax Trust Fund (RPTTF) and are distributed to Successor Agencies based on approved enforceable obligations. The City does not believe the dissolution bill changes the pledged nature of the former tax increment and considers all deposits to the RPTTF pledged for debt service until the full debt service obligation for the fiscal year is reached. Total amount outstanding as of June 30, 2022, is $37,578,960 including $18,805,989 of accreted interest.
2016 Subordinate Tax Allocation Refunding Bonds
In July 2016, the Successor Agency to the Community Development Commission of the City of Santa Fe Springs (the Successor Agency) issued $25,270,000 in 2016 Subordinate Tax Allocation Refunding Bonds to redeem and defease all amounts outstanding under the following five series of bonds issued by the former Community Development Commission of the City of Santa Fe Springs:
$28,845,000 original principal amount Community Development Commission of the City of Santa Fe Springs Consolidated Redevelopment Project Tax Allocation Bonds, 2001 Series A.
$50,915,000 original principal amount Community Development Commission of the City of Santa Fe Springs Consolidated Redevelopment Project Tax Allocation Refunding Bonds, 2002 Series A.
$6,530,000 original principal amount Community Development Commission of the City of Santa Fe Springs Consolidated Redevelopment Project Taxable Tax Allocation Refunding Bonds, 2003 Series A (Housing Tax Revenues). $4,710,000 original principal amount Community Development Commission of the City of Santa Fe Springs Consolidated Redevelopment Project Tax Allocation Bonds, 2006 Series A, issued as current interest bonds.
$18,760,000 original principal amount Community Development Commission of the City of Santa Fe Springs Consolidated Redevelopment Project Taxable Tax Allocation Bonds, 2006 Series B.

CITY OF SANTA FE SPRINGS

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
(77)
NOTE 16 SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT

AGENCY (CONTINUED)
2016 Subordinate Tax Allocation Refunding Bonds (Continued) The refunding resulted in a difference between the reacquisition price and the net carrying amount of the old debt of $487,390, of which the outstanding amount at June 30, 2022 is $194,956, which is reported as a deferred outflow of resources in the accompanying financial statements and amortized over the remaining life of the refunded debt. Interest is payable semi-annually on March 1 and September 1 of each year, commencing March 1, 2017. The certificates mature in 2025 and principal is payable on September 1 each year, commencing September 1, 2017. Total amount outstanding as of June 30, 2022, is $4,205,000.
2017 Subordinate Tax Allocation Refunding Bonds
In December 2017, the Successor Agency to the Community Development Commission of the City of Santa Fe Springs (the Successor Agency) issued $16,215,000 in 2017 Subordinate Tax Allocation Refunding Bonds to redeem and defease all amounts outstanding under the following series of bonds issued by the former Community Development Commission of the City of Santa Fe Springs:
$43,015,000 original principal amount Community Development Commission of the City of Santa Fe Springs Consolidated Redevelopment Project Tax Allocation Bonds.

The refunding resulted in a difference between the reacquisition price and the net carrying amount of the old debt of $146,855, which is fully amortized as of June 30, 2022. Interest is payable semi-annually on March 1 and September 1 of each year, commencing March 1, 2018. The certificates mature in 2023 and principal is payable on September 1 each year, commencing September 1, 2018. Total amount outstanding as of June 30, 2022, is $3,360,000.

Tax Increment Loan Payable
A loan of property tax increment was issued by the County of Los Angeles, California, to the former Washington Boulevard Redevelopment Project Debt Service Fund at a variable interest rate equivalent to the Los Angeles County Annual Treasury Pool rate as calculated annually by the County Auditor-Controller. Principal and interest payments on this loan were originally to be deferred until such time as the former Washington Boulevard Project has received a combined total of $10,750,000 in monies from sales tax increment, and property tax increment. Upon the dissolution of the former redevelopment agency at February 1, 2012, the outstanding balance of the loan was transferred to the Successor Agency. The repayment schedule is not fixed and will be dependent upon the availability of RPTTF to be used for that purpose, subject to the approval of the Oversight Board, Los Angeles County Auditor-Controller, and California Department of Finance. Total amount outstanding as of June 30, 2022, is $6,292,698.
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(79)

REQUIRED SUPPLEMENTARY INFORMATION

CITY OF SANTA FE SPRINGS

BUDGETARY COMPARISON SCHEDULE

GENERAL FUND
YEAR ENDED JUNE 30, 2022
See accompanying Notes to Required Supplementary Information. (80)
Variance with
Final Budget
Positive
Original Final Actual (Negative)

REVENUES
Taxes 61,863,490 $ 62,863,490 $ 75,540,244 $ 12,676,754 $ Licenses and Permits 1,890,200 2,290,200 2,913,256 623,056 Intergovernmental 809,300 809,300 926,186 116,886
Charges for Services 3,197,900 6,216,300 7,539,315 1,323,015 Interest and Rentals 2,380,580 2,250,580 (2,617,216) (4,867,796) Fines and Forfeitures 557,000 557,000 446,114 (110,886) Contributions 113,900 113,900 260,407 146,507 Miscellaneous 748,200 1,303,200 866,654 (436,546) Total Revenues 71,560,570 76,403,970 85,874,960 9,470,990 EXPENDITURES General Government 10,176,900 10,476,843 8,984,762 1,492,081 Public Safety 35,363,300 37,034,611 36,135,015 899,596 Community Development 2,905,900 2,905,900 3,040,862 (134,962) Public Works 12,592,200 13,113,516 11,997,660 1,115,856 Culture and Leisure 6,266,300 6,327,800 5,759,396 568,404 Human Services 1,885,200 1,912,100 1,757,065 155,035 Capital Outlay 1,292,500 1,382,544 854,658 527,886
Debt Service:

Principal Retirement 631,200 631,200 675,014 (43,814)
Interest and Fiscal Charges 73,000 73,000 76,193 (3,193) Total Expenditures 71,186,500 73,857,515 69,280,625 4,576,890 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 2,546,455 374,070 16,594,335 14,047,880 OTHER FINANCING SOURCES (USES) Transfers In 3,478,800 2,549,300 2,674,208 124,908 Transfers Out (2,816,000) (2,816,000) (11,800,000) (8,984,000) Capital Leases - - 454,612 454,612 Sale of Capital Asset 30,000 30,000 55,786 25,786 Total Other Financing Sources (Uses) 692,800 (236,700) (8,615,394) (8,378,694) NET CHANGE IN FUND BALANCE 2,309,755 1,066,870 7,978,941 5,669,186 Fund Balance - Beginning of Year 60,348,529 60,348,529 60,348,529 - FUND BALANCE - END OF YEAR $ 62,658,284 61,415,399 $ 68,327,470 $ 5,669,186 $ Budgeted Amounts

CITY OF SANTA FE SPRINGS

BUDGETARY COMPARISON SCHEDULE

LOW AND MODERATE INCOME HOUSING ASSETS FUND
YEAR ENDED JUNE 30, 2022
See accompanying Notes to Required Supplementary Information. (81)
Variance with
Final Budget
Positive
Original Final Actual (Negative)

REVENUES
Interest and Rentals 100,000 $ 100,000 $ 150,565 $ 50,565 $ Total Revenues 100,000 100,000 150,565 50,565 EXPENDITURES Community Development 205,700 255,000 213,405 41,595 Total Expenditures 205,700 255,000 213,405 41,595 NET CHANGE IN FUND BALANCE (155,000) (105,700) (62,840) 92,160 Fund Balance - Beginning of Year 12,170,846 12,170,846 12,170,846 - FUND BALANCE - END OF YEAR $ 12,015,846 12,065,146 $ 12,108,006 $ 92,160 $ Budgeted Amounts

CITY OF SANTA FE SPRINGS

MISCELLANEOUS PLAN

SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS LAST TEN FISCAL YEARS*
(82)
Fiscal Year Ended June 30, 2022 June 30, 2021 June 30, 2020 Measurement Period June 30, 2021 June 30, 2020 June 30, 2019 Total Pension Liability:

Service Cost 1,766,312 $ 1,567,189 $ 1,609,236 $
Interest on Total Pension Liability 13,033,238 12,629,742 12,378,733 Differences Between Expected and Actual Experience 2,313,861 268,043 2,131,720 Changes in Assumptions - - - Benefit Payments, Including Refunds of Employee Contributions (10,958,843) (10,975,249) (10,473,500) Net Change in Total Pension Liability 6,154,568 3,489,725 5,646,189 Total Pension Liability - Beginning of Year 184,565,461 181,075,736 175,429,547 Total Pension Liability - End of Year (a) 190,720,029 $ 184,565,461 $ 181,075,736 $ Plan Fiduciary Net Position:

Contributions - Employer $ 5,957,285 6,557,278 $ 5,182,712 $ Contributions - Employee 911,222 855,704 783,946 Net Investment Income 24,174,117 5,199,591 6,740,766 Benefit Payments (10,958,843) (10,975,249) (10,473,500) Net Plan to Plan Resource Movement - - - Other Miscellaneous Income (Expense) - - 242 Administrative Expense (106,198) (148,620) (73,690) Net Change in Plan Fiduciary Net Position 20,577,576 888,711 2,160,476 Plan Fiduciary Net Position - Beginning of Year 106,311,037 105,422,326 103,261,850
Plan Fiduciary Net Position -
End of Year (b) 126,888,613 $ 106,311,037 $ 105,422,326 $ Net Pension Liability - Ending (a)-(b) 63,831,416 $ 78,254,424 $ 75,653,410 $ Plan Fiduciary Net Position as a Percentage
of the Total Pension Liability 66.53% 57.60% 58.22%
Covered Payroll 9,998,155 $ 9,185,973 $ 8,249,634 $
Net Pension Liability as Percentage of
Covered Payroll 638.43% 851.89% 917.05%
Notes to Schedule:

Changes in Assumptions:

Fiscal year 2015 was the first year of implementation and therefore only eight years are shown.

There were no changes in benefits.

Benefit Changes:

From fiscal year June 30, 2019 to June 30, 2022:

There were no changes in assumptions.

CITY OF SANTA FE SPRINGS

MISCELLANEOUS PLAN

SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS (CONTINUED) LAST TEN FISCAL YEARS*
(83)
Fiscal Year Ended June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 Measurement Period June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014 Total Pension Liability:

Service Cost 1,796,886 $ 1,697,844 $ 1,501,984 $ 1,544,341 $ 1,578,729 $ Interest on Total Pension Liability 11,973,513 11,756,269 11,766,386 11,550,084 11,142,267 Differences Between Expected and Actual Experience (299,522) (3,198,739) (1,620,555) 714,618 - Changes in Assumptions (953,019) 9,199,362 - (2,672,769) - Benefit Payments, Including Refunds of Employee Contributions (9,808,276) (8,617,142) (8,887,931) (8,362,515) (8,292,893) Net Change in Total Pension Liability 2,709,582 10,837,594 2,759,884 2,773,759 4,428,103 Total Pension Liability - Beginning of Year 172,719,965 161,882,371 159,122,487 156,348,728 151,920,625 Total Pension Liability - End of Year (a) 175,429,547 $ 172,719,965 $ 161,882,371 $ 159,122,487 $ 156,348,728 $ Plan Fiduciary Net Position:

Contributions - Employer $ 4,174,840 4,673,836 $ 3,728,926 $ 3,368,960 $ 2,513,465 $ Contributions - Employee 873,584 957,530 932,924 945,614 1,210,652 Net Investment Income 8,481,211 10,317,843 500,787 2,213,275 14,964,552 Benefit Payments (9,808,276) (8,617,142) (8,887,931) (8,362,515) (8,292,893) Net Plan to Plan Resource Movement (242) - - - - Other Miscellaneous Income (Expense) (294,413) - - - - Administrative Expense (155,035) (137,006) (58,860) (108,707) - Net Change in Plan Fiduciary Net Position 3,770,665 6,696,065 (3,784,154) (1,943,373) 10,395,776 Plan Fiduciary Net Position - Beginning of Year 99,491,185 92,795,120 96,579,274 98,522,647 88,126,871 Plan Fiduciary Net Position - End of Year (b) 103,261,850 $ 99,491,185 $ 92,795,120 $ 96,579,274 $ 98,522,647 $ Net Pension Liability - Ending (a)-(b) 72,167,697 $ 73,228,780 $ 69,087,251 $ 62,543,213 $ 57,826,081 $ Plan Fiduciary Net Position as a Percentage
of the Total Pension Liability 58.86% 57.60% 57.32% 60.69% 63.01% Covered Payroll 8,771,632 $ 9,696,909 $ 9,040,284 $ 9,086,236 $ 8,979,508 $ Net Pension Liability as Percentage of
Covered Payroll 822.74% 755.18% 764.22% 688.33% 643.98% Notes to Schedule:

Changes in Assumptions:

Fiscal year 2015 was the first year of implementation and therefore only eight years are shown.

There were no changes in assumptions.

From fiscal year June 30, 2017 to June 30, 2018:

The discount rate was reduced from 7.65% to 7.15%.

From fiscal year June 30, 2018 to June 30, 2019:

There were no changes in assumptions.

From fiscal year June 30, 2015 to June 30, 2016:

From fiscal year June 30, 2016 to June 30, 2017:

GASB 68, paragraph 68 states that the long-term expected rate of return should be determined net of pension plan investment expense but without reduction for pension plan administrative expense. The discount rate of 7.50% used for the June 30, 2014 measurement date was net of administrative expenses. The discount rate of 7.65% used for the June 30, 2015 measurement date is without reduction of pension plan administrative expense.

Benefit Changes:

There were no changes in benefits.

CITY OF SANTA FE SPRINGS

MISCELLANEOUS PLAN

SCHEDULE OF CONTRIBUTIONS
LAST TEN FISCAL YEARS*
(84)
Fiscal Year Ended June 30, 2022 June 30, 2021 June 30, 2020 Contractually Required Contribution
(Actuarially Determined) $ 6,557,278 7,068,663 $ 5,952,729 $ Contributions in Relation to
the Actuarially Determined
Contributions (6,557,278) (7,068,663) (5,952,729) Contribution Deficiency (Excess) $ - - $ - $ Covered Payroll $ 9,998,155 10,510,114 $ 9,185,973 $
Contributions as a Percentage
of Covered Payroll 67.26% 65.58% 64.80%
Notes to Schedule:

Valuation Date 6/30/2019 6/30/2018 6/30/2017
Methods and Assumptions Used to
Determine Contribution Rates:

Actuarial Cost Method Entry age Entry age Entry age
Amortization Method (1) (1) (1)
Asset Valuation Method Fair Value Fair Value Fair Value Inflation 2.500% 2.500% 2.625%
Salary Increases (2) (2) (2)
Investment Rate of Return 7.00% (3) 7.00% (3) 7.25% (3) Retirement Age (4) (4) (4)
Mortality (5) (5) (5)
(1) Level percentage of payroll, closed.
* Fiscal year 2015 was the first year of implementation and therefore only seven years are shown. (2) Depending on age, service and type of employment.
(3) Net of pension plan investment expense, including inflation. (4) 2.7% at 55, 2% at 55 and 2% at 62
(5) Mortality assumptions are based on mortality rates resulting from the most recent CalPERS Experience Study adopted by the CalPERS Board.

CITY OF SANTA FE SPRINGS

MISCELLANEOUS PLAN

SCHEDULE OF CONTRIBUTIONS (CONTINUED)
LAST TEN FISCAL YEARS*
(85)
Fiscal Year Ended June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 Contractually Required Contribution
(Actuarially Determined) $ 4,669,275 5,182,369 $ 4,174,840 $ 3,728,926 $ 3,554,823 $ Contributions in Relation to
the Actuarially Determined
Contributions (4,669,275) (5,182,369) (4,174,840) (3,728,926) (3,554,823) Contribution Deficiency (Excess) $ - - $ - $ - $ - $ Covered Payroll $ 8,771,632 8,249,634 $ 9,696,909 $ 9,040,284 $ 9,086,236 $ Contributions as a Percentage
of Covered Payroll 62.82% 53.23% 43.05% 41.25% 39.12%
Notes to Schedule:

Valuation Date 6/30/2016 6/30/2015 6/30/2014 6/30/2013 6/30/2012 Methods and Assumptions Used to
Determine Contribution Rates:

Actuarial Cost Method Entry age Entry age Entry age Entry age Entry age Amortization Method (1) (1) (1) (1) (1)
Asset Valuation Method Fair Value Fair Value Fair Value Fair Value 15-Year Smoothed Fair
Value Method
Inflation 2.75% 2.75% 2.75% 2.75% 2.75%
Salary Increases (2) (2) (2) (2) (2)
Investment Rate of Return 7.375% (3) 7.50% (3) 7.50% (3) 7.50% (3) 7.50% (3) Retirement Age (4) (4) (4) (4) (4)
Mortality (5) (5) (5) (5) (5)
adopted by the CalPERS Board.
* Fiscal year 2015 was the first year of implementation and therefore only seven years are shown. (1) Level percentage of payroll, closed.
(2) Depending on age, service and type of employment.
(3) Net of pension plan investment expense, including inflation. (4) 2.7% at 55, 2% at 55 and 2% at 62
(5) Mortality assumptions are based on mortality rates resulting from the most recent CalPERS Experience Study

CITY OF SANTA FE SPRINGS

COST SHARING SAFETY PLAN

SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY LAST TEN FISCAL YEARS*
(86)
Fiscal Year Ended June 30, 2022 June 30, 2021 June 30, 2020 Measurement Period June 30, 2021 June 30, 2020 June 30, 2019 Plans Proportion of the
Net Pension Liability 1.08803% 0.82961% 0.81779%
Plans Proportionate Share
of the Net Pension Liability $ 55,271,784 38,184,110 $ 51,050,543 $ Plans Covered Payroll $ 6,934,844 6,644,007 $ 6,607,330 $ Plans Proportionate Share of
the Net Pension Liability as a
Percentage of Covered Payroll 574.72% 797.02% 772.63%
Plans Proportionate Share of the
Fiduciary Net Position as a
Percentage of the Plans Total 78.59% 68.36% 75.26%
Pension Liability
Notes to Schedule:

Benefit Changes:

There were no changes in benefits.

Changes in Assumptions:
* Fiscal year 2015 was the first year of implementation and therefore only eight years are shown.

There were no changes in assumptions.

From fiscal year June 30, 2019 to June 30, 2022:

CITY OF SANTA FE SPRINGS

COST SHARING SAFETY PLAN

SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY (CONTINUED) LAST TEN FISCAL YEARS*
(87)
Fiscal Year Ended June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 Measurement Period June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014 Plans Proportion of the
Net Pension Liability 0.80993% 0.78353% 0.79447% 0.77891% 0.70334% Plans Proportionate Share
of the Net Pension Liability $ 46,817,505 47,522,971 $ 41,147,225 $ 32,094,633 $ 26,382,020 $ Plans Covered Payroll $ 6,971,540 6,994,713 $ 6,843,585 $ 6,502,095 $ 6,188,907 $ Plans Proportionate Share of
the Net Pension Liability as a
Percentage of Covered Payroll 679.41% 671.55% 601.25% 493.60% 426.28% Plans Proportionate Share of the
Fiduciary Net Position as a
Percentage of the Plans Total 75.26% 73.31% 74.06% 78.40% 79.82% Pension Liability
Notes to Schedule:

Benefit Changes:

There were no changes in benefits.

Changes in Assumptions:
* Fiscal year 2015 was the first year of implementation and therefore only eight years are shown.

From fiscal year June 30, 2015 to June 30, 2016:

There were no changes in assumptions.

From fiscal year June 30, 2016 to June 30, 2017:

There were no changes in assumptions.

From fiscal year June 30, 2017 to June 30, 2018:

The discount rate was reduced from 7.65% to 7.15%
From fiscal year June 30, 2018 to June 30, 2019:

CITY OF SANTA FE SPRINGS

COST SHARING SAFETY PLAN

SCHEDULE OF CONTRIBUTIONS
LAST TEN FISCAL YEARS*
(88)
Fiscal Year Ended June 30, 2022 June 30, 2021 June 30, 2020 Contractually Required Contribution
(Actuarially Determined) $ 4,786,061 5,345,973 $ 4,372,591 $ Contributions in Relation to
the Actuarially Determined
Contributions (4,786,061) (5,345,973) (4,372,591) Contribution Deficiency (Excess) $ - - $ - $ Covered Payroll 6,764,920 $ 6,644,007 $ 6,934,844 $
Contributions as a Percentage
of Covered Payroll 79.02% 72.04% 63.05%
Notes to Schedule:

Valuation Date 6/30/2019 6/30/2018 6/30/2017
Methods and Assumptions Used to
Determine Contribution Rates:

Actuarial Cost Method Entry age Entry age Entry age
Amortization Method (1) (1) (1)
Asset Valuation Method Fair Value Fair Value Fair Value Inflation 2.500% 2.500% 2.625%
Salary Increases (2) (2) (2)
Investment Rate of Return 7.00% (3) 7.00% (3) 7.25% (3) Retirement Age (4) (4) (4)
Mortality (5) (5) (5)
(1) Level percentage of payroll, closed.
* Fiscal year 2015 was the first year of implementation and therefore only eight years are shown. (2) Depending on age, service and type of employment.
(3) Net of pension plan investment expense, including inflation. (4) 3% at 50, 3% at 55 and 2.7% at 57.
(5) Mortality assumptions are based on mortality rates resulting from the most recent CalPERS Experience Study adopted by the CalPERS Board.

CITY OF SANTA FE SPRINGS

COST SHARING SAFETY PLAN

SCHEDULE OF CONTRIBUTIONS (CONTINUED)
LAST TEN FISCAL YEARS*
(89)
Fiscal Year Ended June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 Contractually Required Contribution
(Actuarially Determined) $ 3,247,068 3,701,766 $ 2,887,172 $ 1,166,499 $ 1,892,765 $ Contributions in Relation to
the Actuarially Determined
Contributions (3,247,068) (3,701,766) (2,887,172) (1,166,499) (1,892,765) Contribution Deficiency (Excess) $ - - $ - $ - $ - $ Covered Payroll 6,607,330 $ 6,994,713 $ 6,971,540 $ 6,843,585 $ 6,502,095 $ Contributions as a Percentage
of Covered Payroll 56.03% 46.42% 41.41% 17.05% 29.11%
Notes to Schedule:

Valuation Date 6/30/2016 6/30/2015 6/30/2014 6/30/2013 6/30/2012 Methods and Assumptions Used to
Determine Contribution Rates:

Actuarial Cost Method Entry age Entry age Entry age Entry age Entry age Amortization Method (1) (1) (1) (1) (1)
Asset Valuation Method Fair Value Fair Value Fair Value Fair Value 15-Year Smoothed Fair
Value Method
Inflation 2.75% 2.75% 2.75% 2.75% 2.75%
Salary Increases (2) (2) (2) (2) (2)
Investment Rate of Return 7.375% (3) 7.50% (3) 7.50% (3) 7.50% (3) 7.50% (3) Retirement Age (4) (4) (4) (4) (4)
Mortality (5) (5) (5) (5) (5)
adopted by the CalPERS Board.
* Fiscal year 2015 was the first year of implementation and therefore only eight years are shown. (1) Level percentage of payroll, closed.
(2) Depending on age, service and type of employment.
(3) Net of pension plan investment expense, including inflation. (4) 3% at 50, 3% at 55 and 2.7% at 57.
(5) Mortality assumptions are based on mortality rates resulting from the most recent CalPERS Experience Study

CITY OF SANTA FE SPRINGS

SCHEDULE OF CHANGES IN THE NET OPEB LIABILITY AND RELATED RATIOS LAST TEN FISCAL YEARS*
(90)
Fiscal Year Ended June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 Measurement Date June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 Total OPEB Liability:

Service Cost 978,905 $ 966,145 $ 1,105,368 $ 1,073,173 $ 1,042,000 $ Interest on Total OPEB Liability 4,094,287 4,051,589 4,408,354 4,254,334 4,100,000 Changes of Benefit Terms - - (24,586) - - Differences Between Expected and Actual Experience - (4,911,693) (7,005,009) - - Changes of Assumptions 572,595 (1,048,245) (397,546) - - Benefit Payments (3,397,735) (3,301,649) (3,163,861) (2,992,000) (2,786,000) Net Change in Total OPEB Liability (2,663,641) 667,840 (5,077,280) 2,335,507 2,356,000 Total OPEB Liability - Beginning of Year 61,376,067 60,708,227 65,785,507 63,450,000 61,094,000 Total OPEB Liability - End of Year (a) 58,712,426 $ 61,376,067 $ 60,708,227 $ 65,785,507 $ 63,450,000 $ Plan Fiduciary Net Position:

Contributions - Employer 5,011,731 $ 5,033,207 $ 4,995,349 $ 4,616,000 $ 5,223,000 $ Net Investment Income 6,178,247 793,628 1,101,136 1,119,324 1,216,000 Benefit Payments (3,397,735) (3,301,649) (3,163,861) (2,992,000) (2,786,000) Administrative Expenses (15,517) (17,396) (10,164) (26,012) (6,000) Net Change in Plan Fiduciary Net Position 7,776,726 2,507,790 2,922,460 2,717,312 3,647,000 Plan Fiduciary Net Position - Beginning of Year 19,477,772 21,985,562 16,555,312 13,838,000 10,191,000 Plan Fiduciary Net Position - End of Year (b) 29,762,288 $ 21,985,562 $ 19,477,772 $ 16,555,3 $ 13,838,000 12 $ Net OPEB Liability - Ending (a)-(b) 28,950,138 $ 39,390,505 $ 41,230,455 $ 49,230,195 $ 49,612,000 $ Plan Fiduciary Net Position as a Percentage
of the Total OPEB Liability 50.69% 35.82% 32.08% 25.17% 21.81% Covered - Employee Payroll 19,983,477 $ 18,008,437 $ 17,127,695 $ 19,257,018 $ 18,626,195 $ Net OPEB Liability as Percentage of
Covered - Employee Payroll 144.87% 218.73% 240.72% 255.65% 266.36% Notes to Schedule:

Changes in Assumptions:
* Fiscal year 2018 was the first year of implementation and therefore only five years are shown.

From fiscal year June 30, 2019 to June 30, 2020:

From fiscal year June 30, 2020 to June 30, 2022:

Benefit Changes:

From fiscal year June 30, 2018 to June 30, 2019:

There were no changes in benefits.

Life insurance benefit for grandfathered retirees was terminated.

There were no changes in benefits.

The mortality improvement scale was updated from Scale MP-2017 to MP-2019 and the healthcare trend changed from 7.50% nonmedicare and 6.50% medicare to 7.25% non-medicare and 6.30% medicare.

From fiscal year June 30, 2021 to June 30, 2022:

Decreased inflation reduced discount rate, medical trend, and salary increases, decreased medical trend rate for Kaiser Senior Advantage, Medicare Advantage plan implied subsidy excluded, mortality improvement scale updated to Scale MP-2021.

From fiscal year June 30, 2020 to June 30, 2021:

Removal of ACA Excise Tax.

From fiscal year June 30, 2018 to June 30, 2019:

There were no changes in assumptions.

From fiscal year June 30, 2019 to June 30, 2020:

CITY OF SANTA FE SPRINGS
SCHEDULE OF CONTRIBUTIONSOPEB
LAST TEN FISCAL YEARS*
(91)
Fiscal Year Ended June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 Actuarially Determined Contribution 4,266,000 $ 4,141,000 $ 5,047,000 $ 4,900,000 $ 4,737,000 $ Contributions in Relation to the
Actuarially Determined Contributions (4,183,089) (5,074,731) (5,033,207) (4,995,349) (4,616,000) Contribution Deficiency (Excess) 82,911 $ (933,731) $ 13,793 $ (95,349) $ 121,000 $ Covered - Employee Payroll 21,555,073 $ 19,983,477 $ 18,008,437 $ 17,127,695 $ 19,257,018 $ Contributions as a Percentage of
Covered - Employee Payroll 19.41% 25.39% 27.95% 29.17% 23.97% Notes to Schedule:

Valuation Date 6/30/2019 6/30/2019 6/30/2017 6/30/2017 6/30/2017 Methods and Assumptions Used to Determine Contribution Rates:

Actuarial Cost Method Entry age Entry age Entry age Entry age Entry age Amortization Method (1) (1) (1) (1) (1)
Amortization Period 23-year fixed
(closed)
23-year fixed
(closed)
23-year fixed
(closed)
23-year fixed
(closed)
23-year fixed
(closed)
Asset Valuation Method (2) (2) (2) (2) (2)
Discount Rate 6.75% 6.75% 6.75% 6.75% 7.25%
Inflation 2.75% 2.75% 2.75% 2.75% 2.75%
Healthcare Trend Rates (4) (4) (4) (4) (3)
Mortality (6) (6) (6) (6) (5)
* Fiscal year 2018 was the first year of implementation and therefore only five years are shown. (1) Level percentage of payroll.
(2) Investment gains/losses spread over 5-year rolling period. (6) CalPERS 1997-2015 experience study.
(3) Non-Medicare 7.5%, decreasing to an ultimate rate of 4% in 2076.

Medicare - 6.5%, decreasing to an ultimate rate of 4% in 2076. (4) Non-Medicare 7.25%, decreasing to an ultimate rate of 4% in 2076.

Medicare - 6.3%, decreasing to an ultimate rate of 4% in 2076. (5) CalPERS 1997-2011 experience study.

CITY OF SANTA FE SPRINGS

NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2022
(92)
Budgetary Comparison Information
Summary of Budgetary Policies
The budget is prepared by the City Manager in accordance with City Code Section 31.13 and is legally adopted by the City Council. The budget includes activities for the General Fund.

Budgets for capital projects funds are not presented because they are budgeted on a project life basis.

Revisions to the originally adopted budget were made during the year and have been incorporated into the budgetary amounts presented within the financial statements.

The basis for budgeting in the General Fund and Special Revenue Funds is substantially consistent with accounting principles generally accepted in the United States of America, except that payments made on financing leases are recorded as functional expenditures. The lease agreements are not budgeted as a financing source and the acquisition price of the acquired asset is not budgeted as an expenditure.

The legal level of control is considered to be at the fund level since management can reassign resources within a fund without special approval from City Council.

The budget is formally integrated into the accounting system and employed as a management control tool during the year. At fiscal year-end, unexpended appropriations lapse, with the exception of capital improvements. All appropriations for capital improvements are carried forward until such time as the project is completed or terminated by action of the City Council.

The following funds do not have a legally adopted budget:

Heritage Springs Street Maintenance District
Business License Surcharge
Fire Grants
Community Development Block Grant Program Income Fund
Narcotics Forfeitures/Seizures
State Coronavirus Relief Fund
Heritage Art Education Endowment Fund

CITY OF SANTA FE SPRINGS

DESCRIPTION OF NONMAJOR GOVERNMENTAL FUNDS
(93)
Nonmajor governmental funds reported in the governmental fund financial statements include the following:

SPECIAL REVENUE FUNDS
State Gas Tax
This fund is used to account for gasoline taxes received under Sections 2105, 2106, 2107 and 2107.5 of the Street and Highways Code. These funds are utilized solely for street related purposes such as new construction, rehabilitation, or maintenance.

County Transit Tax
This fund is used to account for the Citys share of an additional one-half percent sales tax, which was approved by the electorate in November 1980, restricted to financing transportation projects. This fund is also used to account for the Citys share of an additional one-half percent sales tax, which was approved by the electorate in November 1990, restricted to financing transit projects within the City.

Street Lighting Maintenance District
This fund is used to account for revenues received and costs incurred for street lighting services in selected areas within the City. Funds are derived from property-related assessments collected by the County. Financing for the district is provided by assessing areas of benefit under the 1972 Lighting and Maintenance District Art.

Heritage Springs Street Maintenance District
This fund is used to account for revenues received and costs incurred for street maintenance and repair services in selected areas within the City. Funds are derived from property-related assessments collected by the County. Financing for the district is provided by assessing areas of benefit under the 1913 Municipal Improvement Act.

Art in Public Places
This fund is used to account for Heritage Artwork Program fees imposed upon new development at 1% of the building permit valuation for the purpose of increasing public art and providing art educational programs.

Business License Surcharge
This fund is used to account for state mandated $1 surcharge applied to all business licenses issued in the City. Under SB 1186 the revenue is restricted for Certified Access Specialists (CASp) programs, assisting businesses to become American with Disabilities Act (ADA) compliant and developing tools to help educate the businesses community on expanding ADA access.

Air Quality Improvement
This fund is used to account for additional motor vehicle registration fees imposed by the South Coast Air Quality Management District to finance the implementation of mobile source emission reduction programs and the provisions of the California Clean Air Act.

CITY OF SANTA FE SPRINGS

DESCRIPTION OF NONMAJOR GOVERNMENTAL FUNDS (CONTINUED)
(94)
Community Development Block Grant
This fund is used to account for expenditures funded by the Community Development Block Grant Program authorized by Title I of the Housing and Community Development Act of 1974 for the purpose of developing viable urban communities, including decent housing and suitable living environment and expanding economic opportunities, principally for persons of low and moderate income.

Fire Grants
This fund is used to account for various federal and state grants administered by the Department of Fire-Rescue which provide funding for labor, operating, and capital expenditures.

Public Safety Augmentation
This fund is used to account for the Citys share of the one-half percent sales tax, which was approved by the electorate in November of 1993. The proceeds are earmarked exclusively for public safety purposes.

Supplemental Law Enforcement Services
This fund is used to account for a State of California block grant providing for community oriented policing programs. The funds are to be spent on new programs supporting front-line law enforcement activities.

Community Development Block Grant Program Income
This fund is used to account for the receipt of repayments received by the City from loans funded by the Community Development Block Grant program. These funds may be retained by the City but must be expended under the Community Development Block Grant program.

Narcotics Forfeitures/Seizures
This fund is used to account for assets received for direct local law enforcement participation in investigations or prosecutions resulting in a forfeiture.

Transportation Center Expansion Parking Lot Fund
This fund is used to account for lease income from City of Norwalk for the vacant parcel at the Transportation Center that is being developed. The fund is being earmarked for transportation purposes.

State Coronavirus Relief Fund
This fund is used to account for expenditures funded by the State Coronavirus Relief Fund.

Measure W
This fund is used to account for stormwater activities.

PERMANENT FUND
Heritage Art Education Endowment Fund
This fund is used to account for an endowment held by the City to be used for the purpose of providing art education programs.
(95)
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CITY OF SANTA FE SPRINGS
COMBINING BALANCE SHEET

NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2022
(96)
Heritage
Street Springs
County Lighting Street Art in
State Transit Maintenance Maintenance Public
Gas Tax Tax District District Places
ASSETS
Pooled Cash and Investments 654,299 $ 4,008,327 $ 184,892 $ 183,007 $ 1,409,503 $ Receivables:

Accounts - - - - - Notes and Loans - - - - - Due from Other Governments 144,909 13,475 13,815 - - Due from other Funds - - 1,901 - - Total Assets 799,208 $ 4,021,802 $ 200,608 $ 183,007 $ 1,409,503 $

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES

LIABILITIES
Accounts Payable - $ - $ - $ - $ - $
Unearned Revenues - 13,475 - - - Due to Other Funds - - - - - Total Liabilities - 13,475 - - - DEFERRED INFLOWS OF RESOURCES Unavailable Revenue - - - - - Total Deferred Inflows
of Resources - - - - - FUND BALANCES
Nonspendable:

Permanent Fund Principal - - - - - Restricted for:

Community Development Projects - - - - - Public Safety - - - - - Public Works 799,208 4,008,327 200,608 183,007 - Art in Public Places - - - - 1,409,503 Unassigned - - - - - Total Fund Balances 799,208 4,008,327 200,608 183,007 1,409,503 Total Liabilities and Fund Balances 799,208 $ 4,021,802 $ 200,608 $ 183,007 $ 1,409,503 $ Special Revenue Funds

CITY OF SANTA FE SPRINGS
COMBINING BALANCE SHEET (CONTINUED)

NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2022
(97)
Community
Business Air Development Public
License Quality Block Fire Safety
Surcharge Improvement Grant Grants Augmentation
ASSETS
Pooled Cash and Investments 75,435 $ 222,246 $ - $ - $ - $ Receivables:

Accounts 292 - - - - Notes and Loans - - - - - Due from Other Governments - 5,963 2,126 140,388 43,242 Due from other Funds - - - - - Total Assets 75,727 $ 228,209 $ 2,126 $ 140,388 $ 43,242 $

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES

LIABILITIES
Accounts Payable 32 $ - $ - $ - $ - $
Unearned Revenues - - - - - Due to Other Funds - - 2,126 140,388 43,242 Total Liabilities 32 - 2,126 140,388 43,242 DEFERRED INFLOWS OF RESOURCES Unavailable Revenue - - - 80,000 - Total Deferred Inflows of Resources - - - 80,000 - FUND BALANCES
Nonspendable:

Permanent Fund Principal - - - - - Restricted for:

Community Development Projects 75,695 - - - - Public Safety - - - - - Public Works - 228,209 - - - Art in Public Places - - - - - Unassigned - - - (80,000) - Total Fund Balances 75,695 228,209 - (80,000) - Total Liabilities and Fund Balances 75,727 $ 228,209 $ 2,126 $ 140,388 $ 43,242 $ Special Revenue Funds

CITY OF SANTA FE SPRINGS
COMBINING BALANCE SHEET (CONTINUED)

NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2022
(98)
Community Transportation
Supplemental Development Center
Law Block Grant Narcotics Expansion State
Enforcement Program Forfeitures/ Parking Coronavirus
Services Income Seizures Lot Fund Relief Fund
ASSETS
Pooled Cash and Investments 63,772 $ - $ 65,188 $ 41,002 $ 2,126,225 $ Receivables:

Accounts - - - - - Notes and Loans - 19,250 - - - Due from Other Governments 65,271 - - - - Due from other Funds - - - - - Total Assets 129,043 $ 19,250 $ 65,188 $ 41,002 $ 2,126,225 $

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES

LIABILITIES
Accounts Payable - $ - $ - $ - $ - $
Unearned Revenues - - - - 2,126,225 Due to Other Funds - - - - - Total Liabilities - - - - 2,126,225 DEFERRED INFLOWS OF RESOURCES Unavailable Revenue - - - - - Total Deferred Inflows
of Resources - - - - - FUND BALANCES
Nonspendable:

Permanent Fund Principal - - - - - Restricted for:

Community Development Projects - 19,250 - - - Public Safety 129,043 - 65,188 - - Public Works - - - 41,002 - Art in Public Places - - - - - Unassigned - - - - - Total Fund Balances 129,043 19,250 65,188 41,002 - Total Liabilities and Fund Balances 129,043 $ 19,250 $ 65,188 $ 41,002 $ 2,126,225 $ Special Revenue Funds

CITY OF SANTA FE SPRINGS
COMBINING BALANCE SHEET (CONTINUED)

NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2022
(99)
Special Permanent
Revenue Fund Fund
Heritage
Art Total
Education Nonmajor
Endowment Governmental
Measure W Fund Funds
ASSETS
Pooled Cash and Investments 2,886,374 $ 463,221 $ 12,383,491 $ Receivables:

Accounts - - 292 Notes and Loans - - 19,250 Due from Other Governments - - 429,189 Due from other Funds - - 1,901 Total Assets 2,886,374 $ 463,221 $ 12,834,123 $

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES

LIABILITIES
Accounts Payable - $ - $ 32 $
Unearned Revenues - - 2,139,700 Due to Other Funds - - 185,756 Total Liabilities - - 2,325,488 DEFERRED INFLOWS OF RESOURCES Unavailable Revenue - - 80,000 Total Deferred Inflows
of Resources - - 80,000

FUND BALANCES
Nonspendable:

Permanent Fund Principal - 244,676 244,676 Restricted for:

Community Development Projects - - 94,945 Public Safety - - 194,231 Public Works 2,886,374 - 8,346,735 Art in Public Places - 218,545 1,628,048 Unassigned - - (80,000) Total Fund Balances 2,886,374 463,221 10,428,635 Total Liabilities and Fund Balances 2,886,374 $ 463,221 $ 12,834,123 $

CITY OF SANTA FE SPRINGS

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCESNONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2022
(100)
Heritage
Street Springs
County Lighting Street Art in
State Transit Maintenance Maintenance Public
Gas Tax Tax District District Places

REVENUES
Taxes - $ - $ - $ - $ - $
Intergovernmental 796,907 1,481,517 194,062 - -
Interest and Rentals 4,308 28,601 2 - 10,994 Contributions - - - - 669,055 Miscellaneous - - - - - Total Revenues 801,215 1,510,118 194,064 - 680,049 EXPENDITURES Current:

General Government - - - - - Public Safety - - - - - Public Works - - - - - Culture and Leisure - - - - - Total Expenditures - - - - - EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES 1,510,118 801,215 194,064 - 680,049 OTHER FINANCING SOURCES (USES) Transfers In - - - - - Transfers Out (283,079) (357,098) (183,000) - (440,779) Sale of Capital Assets - - - - - Total Other Financing Sources (Uses) (283,079) (357,098) (183,000) - (440,779) NET CHANGE IN FUND BALANCES 1,153,020 518,136 11,064 - 239,270 Fund Balances - Beginning of Year 281,072 2,855,307 189,544 183,007 1,170,233 FUND BALANCES - END OF YEAR $ 4,008,327 799,208 $ 200,608 $ 183,007 $ 1,409,503 $ Special Revenue Funds

CITY OF SANTA FE SPRINGS

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCESNONMAJOR GOVERNMENTAL FUNDS (CONTINUED) YEAR ENDED JUNE 30, 2022
(101)
Community
Business Air Development Public
License Quality Block Fire Safety
Surcharge Improvement Grant Grants Augmentation

REVENUES
Taxes 14,263 $ - $ - $ - $ 236,626 $
Intergovernmental - 23,129 25,706 548,502 -
Interest and Rentals - 1,727 - - - Contributions - - - - - Miscellaneous - - - - - Total Revenues 14,263 24,856 25,706 548,502 236,626 EXPENDITURES Current:

General Government 725 - - - - Public Safety - - - 360,203 - Public Works - - - - - Culture and Leisure - - 25,706 - - Total Expenditures 725 - 25,706 360,203 - EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES 24,856 13,538 - 188,299 236,626 OTHER FINANCING SOURCES (USES) Transfers In - - - - - Transfers Out - - - (26,622) (236,626) Sale of Capital Assets - - - - - Total Other Financing Sources (Uses) - - - (26,622) (236,626) NET CHANGE IN FUND BALANCES 24,856 13,538 - 161,677 - Fund Balances - Beginning of Year 62,157 203,353 - (241,677) - FUND BALANCES - END OF YEAR $ 228,209 75,695 $ - $ (80,000) $ - $ Special Revenue Funds

CITY OF SANTA FE SPRINGS

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCESNONMAJOR GOVERNMENTAL FUNDS (CONTINUED) YEAR ENDED JUNE 30, 2022
(102)
Community Transportation
Supplemental Development Center
Law Block Grant Narcotics Expansion State
Enforcement Program Forfeitures/ Parking Coronavirus
Services Income Seizures Lot Fund Relief Fund

REVENUES
Taxes - $ - $ - $ - $ - $
Intergovernmental 165,271 - 16,244 - -
Interest and Rentals 791 - 462 1 - Contributions - - - - - Miscellaneous - - - - - Total Revenues 166,062 - 16,706 1 - EXPENDITURES Current:

General Government - - - - - Public Safety - - - - - Public Works - - - - - Culture and Leisure - - - - - Total Expenditures - - - - - EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES - 166,062 16,706 1 - OTHER FINANCING SOURCES (USES) Transfers In - - - - - Transfers Out (100,000) - - - - Sale of Capital Assets - - - - - Total Other Financing Sources (Uses) (100,000) - - - - NET CHANGE IN FUND BALANCES - 66,062 16,706 1 - Fund Balances - Beginning of Year 62,981 19,250 48,482 41,001 - FUND BALANCES - END OF YEAR $ 19,250 129,043 $ 65,188 $ 41,002 $ - $ Special Revenue Funds

CITY OF SANTA FE SPRINGS

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCESNONMAJOR GOVERNMENTAL FUNDS (CONTINUED) YEAR ENDED JUNE 30, 2022
(103)
Special Permanent
Revenue Fund Fund
Heritage
Art Total
Education Nonmajor
Endowment Governmental
Measure W Fund Funds

REVENUES
Taxes - $ - $ 250,889 $
Intergovernmental 1,440,635 - 4,691,973
Interest and Rentals 15,077 3,810 65,773 Contributions - - 669,055 Miscellaneous - - - Total Revenues 1,455,712 3,810 5,677,690 EXPENDITURES Current:

General Government - - 725 Public Safety - - 360,203 Public Works - - - Culture and Leisure - - 25,706 Total Expenditures - - 386,634 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES 3,810 1,455,712 5,291,056 OTHER FINANCING SOURCES (USES) Transfers In - - - Transfers Out - - (1,627,204) Sale of Capital Assets - - - Total Other Financing Sources (Uses) - - (1,627,204) NET CHANGE IN FUND BALANCES 3,810 1,455,712 3,663,852 Fund Balances - Beginning of Year 1,430,662 459,411 6,764,783 FUND BALANCES - END OF YEAR $ 463,221 2,886,374 $ 10,428,635 $