Agenda packet — Santa Paula City Council, January 24, 2024

City of Santa Paula
City Council

MAYOR LESLIE CORNEJO
VICE MAYOR PEDRO A. CHAVEZ

COUNCILMEMBER JENNY CROSSWHITE

COUNCILMEMBER CARLOS JUAREZ

COUNCILMEMBER ANDY SOBEL

CITY COUNCIL REGULAR MEETING OF THE

SANTA PAULA CITY COUNCIL
WEDNESDAY, JANUARY 24, 2024
6:30 PM - City Council Regular Meeting

SANTA PAULA CITY HALL
970 VENTURA STREET
SANTA PAULA, CA 93060

JULIE LATSHAW, CITY CLERK

DAN SINGER, CITY MANAGER

MONICA CASTILLO, CITY ATTORNEY
City of Santa Paula - City Council - City Council Regular Meeting 1

BRINGING ITEMS BEFORE THE CITY COUNCIL
You are invited to participate in all Regular City Council meetings. Agendas are posted in the front of Santa Paula City Hall, 970 Ventura Street, Santa Paula, 72 hours in advance of the scheduled meetings. The City Council's regular meetings start at 6:30 p.m. the first and third Wednesday of each month in the City Hall Council Chambers located at 970 Ventura Street in Santa Paula.

HOW TO PARTICIPATE IN PERSON DURING THE MEETING: If you wish to speak at a City Council meeting, please fill out a Public Comment Form noting your name and address and submit the form to the City Clerk. Include the Agenda item number, when appropriate. Public comments are limited to 3 minutes.

1. Items Not on the Agenda: If you wish to discuss an item which is not scheduled on the Agenda, you may address the City Council during Public Comment. Please realize that due to the limitations placed on the City Council by provisions of the California Government Code, the City Council ordinarily cannot take action on any item that is not on the agenda. Because of these restrictions, expect that matters that you identify during public comment may be referred to staff or considered on a future agenda.

2. Agenda Items: Items being considered by the City Council may appear on the Consent Calendar, as an Action Item, or as a Public Hearing. Public comments on each type of item are handled differently, as explained below:
a. For items appearing on the Consent Calendar, please submit a Public Comment Form before the Council takes action on the Consent Calendar. Items that receive a Public Comment Form may be pulled from the Consent Calendar by the Mayor and discussed separately by the City Council.
b. For items appearing as an Action Item, the Mayor will announce the Agenda item and request the staff report, the staff member responsible will give a brief summary of the report; the City Council will have an opportunity to ask questions of staff; members of the public will be given an opportunity to comment on the item and ask additional questions (all members of the public should speak directly into the microphone at the speaker’s platform); and the City Council will discuss the item and then take appropriate action.
c. For items on which a Public Hearing is scheduled, the Mayor will open the public hearing and receive the staff report; members of the public will be given an opportunity to comment on the item and ask additional questions (all members of the public should speak directly into the microphone at the speaker’s platform); the City Council will discuss the item; and the Mayor will close the public hearing after City Council action.

HOW TO PARTICIPATE BEFORE THE MEETING: Members of the public are encouraged to submit email correspondence on any agenda item by sending an email to [email protected]. All public correspondence received by 3:00 p.m. (PT) on the meeting date will be provided to the legislative body before the meeting. Public Comments received after 3:00 p.m. will be provided to the legislative body the next day.

Your Participation in this meeting is in the public domain; meetings are cablecast; minutes of this meeting will reflect your participation in this meeting and are posted on the city’s website.

PLEASE NOTE: Be advised that if you bring a legal challenge to an action, you may be limited to raising only those issues you or someone else raised at the meeting described in this Agenda, or in written correspondence delivered to the City Council at or before the meeting.

Any action is subject to the ninety-day time period set forth in Code of Civil Procedure § 1094.6.

City of Santa Paula - City Council - City Council Regular Meeting 2

1. CALL TO ORDER
REMINDER: in order to minimize distractions during public meetings, all personal communication devices should be turned off or put in a non-audible mode.

2. INVOCATION

3. FLAG SALUTE

4. ROLL CALL

5. PUBLIC COMMENT
At this time, members of the public may comment on any item not appearing on the agenda that is within the subject-matter jurisdiction of the City Council. A Public Comment Form must be submitted to the City Clerk prior to the beginning of the Public Comment period in order to be recognized to speak. Individuals submitting Public Comment Forms after the beginning of the Public Comment period will not be allowed to speak at this time, but may be recognized to speak by the Mayor at the conclusion of the meeting. Individual Councilmembers may briefly respond to Public Comments or ask questions for clarification. The City Council may direct staff to report to the City Council on the item at a later meeting. For items appearing on the Agenda, the public will be invited to make comments at the time the item comes up for City Council consideration. If a member of the public wishes to address a Consent Calendar item, please submit a Public Comment Form for that item. It may then be discussed separately by the Council, and the public will be invited to make comments at that time. At all times, please use the microphone and write your name and address on the Public Comment Form provided.

6. PRESENTATIONS

6.A CALIFORNIA AGRICULTURAL LABOR RELATIONS BOARD (ALRB)

PRESENTATION

6.B SMALL BUSINESS ADMINISTRATION PRESENTATION

6.C ANNUAL CITY AUDIT

6.D FINANCE DEPARTMENT QUARTERLY REPORT
RECOMMENDATION:

Staff recommends that the City Council receive and file the FY 2023/2024 First and Second Quarter Activity Report for the Finance Department.

7. CITY COUNCIL REPORTS
In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk at (805) 933-4208. Notification 48 hours before the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. (28 CFR 35, 102-35.104 ADA Title II). Written materials distributed to the City Council within 72 hours of the City Council meeting are available for public inspection immediately upon distribution in the City Clerk’s office.

REGULAR MATTERS - COUNCIL CHAMBERS
City of Santa Paula - City Council - City Council Regular Meeting 3

8. CITY MANAGER REPORTS

9. CONSENT CALENDAR
Background information has been provided to the City Council on all matters listed under the Consent Calendar and these items are considered to be routine by the City Council and are normally approved by one motion. If discussion is requested by a Councilmember on any item, or a member of the public wishes to comment on an item, that item may be removed from the Consent Calendar for separate action.

9.A APPROVAL OF MINUTES
RECOMMENDATION:

Staff recommends Council approve the following minutes:

City Council Special Minutes for January 10, 2024
City Council Regular Minutes for January 10, 2024

9.B NOVEMBER 2023 WARRANTS AND CERTIFICATIONS
RECOMMENDATION:

Staff recommends that the City Council:

1. Review and accept the "Certification of Accounts Payable" for the accounts payable payment cycles for November 2023, starting check number 335665 and ending check number 336011.

2. Review and accept the "Certification of Salaries" for the pay period ending dates November 3rd, 2023 through November 17th, 2023.

9.C DECEMBER 2023 WARRANTS AND CERTIFICATIONS
RECOMMENDATION:

Staff recommends that the City Council:

1. Review and accept the "Certification of Accounts Payable" for the accounts payable payment cycles for December 2023, starting check number 336012 and ending check number 336250.

2. Review and accept the "Certification of Salaries" for the pay period ending dates December 1st, 2023 through December 15th, 2023.

9.D PECK ROAD & HARVARD BOULEVARD TRAFFIC SIGNAL

REPLACEMENT PROJECT
RECOMMENDATION:

Staff recommends that the City Council:

Approve budget adjustments and allocations as recommended by staff for the Peck Road & Harvard Blvd Traffic Signal Replacement Project.

9.E ALCOHOL ENFORCEMENT AGREEMENT FOR PROJECT 19-CUP-01, GUNSMOKE BBQ LOCATED AT 817 E. MAIN STREET
RECOMMENDATION:

Staff recommends that the City Council:

Approve the Enforcement Agreement for Project No. 19-CUP-01, Gunsmoke City of Santa Paula - City Council - City Council Regular Meeting 4 BBQ located at 817 E. Main Street.

9.F ALCOHOL ENFORCEMENT AGREEMENT FOR PROJECT 20-CUP-09 / 23- MM-03, SANTA PAULA CELLARS, LLC LOCATED AT 926 E. MAIN
STREET
RECOMMENDATION:

Staff recommends that the City Council:

Approve the Enforcement Agreement for Project No. 20-CUP-09 / 23-MM-03 Santa Paula Cellars, LLC at 926 E. Main Street.

9.G RESOLUTION NO. 7498 ACCEPTING PUBLIC WATER AND RECYCLED

WATER IMPROVEMENTS, ACCEPTING WARRANTY SECURITIES AND

EXONERATING PERFORMANCE SECURITIES
RECOMMENDATION:

Staff recommends that the City Council:

1. Adopt Resolution No 7498 accepting the East Area 1 Tracts 5854, 5986- 5992 public water and recycled water improvements, accepting warranty securities and exonerating faithful performance securities.

9.H ANNUAL AUDIT - FY 21/22
RECOMMENDATION:

Staff recommends the City Council receive and place on file the Annual Audited Financial Statements for the Fiscal Year ended June 30, 2022.

Presented by: Christy Ramirez, Finance Director

10. ACTION ITEMS

10.A 2023-2025 CITY COUNCIL STRATEGIC PLAN PROGRESS REPORT RECOMMENDATION:

Staff recommends City Council:

1. Receive and file a six-month progress report on the Council's Strategic Plan and direct staff to take additional or related action that may be desirable.

Presented by: Jonathan Royas, Deputy City Manager

10.B FUTURE AGENDA ITEMS & FEBRUARY MEETING CONSIDERATIONS RECOMMENDATION:

Staff recommends City Council review future agenda items and provide input on the cancellation and modification of Council meetings for the month of February.

City of Santa Paula - City Council - City Council Regular Meeting 5 Presented by: Dan Singer, City Manager

11. ADJOURNMENT
State of California )-
County of Ventura )- ss
City of Santa Paula )-
I declare under penalty of perjury that I posted this City Council Agenda on the bulletin board near the front door of City Hall, 970 Ventura Street, Santa Paula, California.

On_________________ at______________Signed:_________________________ Julie Latshaw
City Clerk
City of Santa Paula - City Council - City Council Regular Meeting 6 To: Honorable Mayor and Members of the City Council
From: Christy Ramirez, Finance Director
Subject: FINANCE DEPARTMENT QUARTERLY REPORT
Date: January 24, 2024
Agenda Item: 6.D

CITY OF SANTA PAULA

MEMORANDUM
RECOMMENDATION:

Staff recommends that the City Council receive and file the FY 2023/2024 First and Second Quarter Activity Report for the Finance Department.

BACKGROUND:

Accounts Receivable
Finance prepares invoices and receipts funds for various types of payments due to the City, including monthly Transient Occupancy Tax and rents for City-owned property. During the first and second quarter of the fiscal year, billing for COBRA (continuation of health coverage), special events and permits, and other miscellaneous items occurred. Staff also followed up on outstanding receivables including School Resource Officer and Deposit based billing.

Accounts Payable
Finance processes disbursements to cover financial commitments of the City, maintains files for all City payments to vendors and contractors, and issues business license and utility deposit refunds. From July through December of FY 23/24, accounts payable staff processed 4,431 regular invoices totaling over twenty eight million dollars. This total consist of $3.2 million in bond payments, $4.7 million in payroll related expenses such as the unfunded accrued liability payment and regular taxes, $2.7 million for insurance costs, $1 million in utilities and over $9 million in construction costs related to the Mesa Tank, the Sports Park, and Street Improvements capital project.

Purchasing
Staff continues to work with various departments to issue requests for proposals, assist in purchasing of materials, and processing purchase orders and requisitions. Over 100 new purchase orders were created between April and June 2022 totaling $7.9 million and nearly 90 existing purchase orders were carried over consisting of over $16 million in encumbrances.

Business and Dog Licenses
7 On January 1, 2024 the Business License tax payment period began for the calendar year and are deemed as delinquent as of February 10, 2024. These licenses will be in effect until December 31, 2024. Finance staff continues to work through their busiest time of year for business licenses, processing hundreds of payments, following up on missing items, and fielding hundreds of calls monthly. Staff was able to send out renewal notices in late 2023 and as such provide a quicker turn around on license renewals this year.

Utility Billing
Staff continues to work with residents on utility payments and providing available assistance to avoid shutoffs when possible, communicating shutoff language in line with the Senate Bill 998 requirements. Shutoff trends are lower than what was experienced prior to the pandemic. Staff also worked with the Waterboards of California to submit a request via the Arrearage program for over $750,000 in assistance to accounts with delinquent amounts for the usage period through December 2022. Additionally staff has worked with water staff to identify customers that have had their water usage not reflected properly in previous billings.

MISCELLANEOUS
In the first and second quarter of the 23/24 Fiscal Year, Finance staff has also:

Assisted with East Area 1 Development Agreement
Assisted with Redtail development discussions
Contributed to discussions for the Spirit of Santa Paula Operating Agreement Assisted with labor negotiations
Worked on completing the 2022 and 2023 audit
Extended offers to two accounting specialists who are expected to start in January/February of 2024
ANALYSIS:

STRATEGIC PLAN:

This item is not a goal or objective in the City Council's two-year Strategic Plan, however it is beneficial to the public to be transparent about activities occurring in the City's Finance Department.

FISCAL IMPACTS:

None
OPTIONS:

Council may:

1. Receive and file the quarterly department report.

2. Request further information from City staff.

ATTACHMENTS:
8 To: Honorable Mayor and Members of the City Council
From: Julie Latshaw, City Clerk
Subject: APPROVAL OF MINUTES
Date: January 24, 2024
Agenda Item: 9.A

CITY OF SANTA PAULA

MEMORANDUM
RECOMMENDATION:

Staff recommends Council approve the following minutes:

City Council Special Minutes for January 10, 2024
City Council Regular Minutes for January 10, 2024
BACKGROUND:

An account of all proceedings of the Legislative Body in open meetings shall be kept by the Clerk/Secretary. The Clerk/Secretary shall prepare an abbreviated record of the meeting proceedings for approval by the Legislative Body which when adopted by the Legislative Body shall be the official Minutes of the meeting. Amendment of the minutes may be made only as to factual accuracy and not as to a change of intent. The Minutes of the meeting need not be verbatim. Only the best and most complete available recording of the meeting shall constitute the official record of the Legislative Body, but the Minutes shall constitute the official record of the Legislative Body meeting where a verbatim record of the meeting is not available. Unless requested by a majority of the quorum, the minutes may be approved without reading.

ANALYSIS:

None.

STRATEGIC PLAN:

This item is not a goal or objective in the City Council's two-year Strategic Plan, however, the Minutes shall constitute the official record of the Legislative Body.

FISCAL IMPACTS:

There are no fiscal impacts for this item.

OPTIONS:

ATTACHMENTS:
9 2024.01.10 City Council Special Minutes.pdf
2024.01.10 City Council Regular Minutes.pdf
10 CITY OF SANTA PAULA
City Council Special Meeting
January 10, 2024, 6:00 PM

MINUTES

SPECIAL MEETING - COUNCIL CHAMBERS
1) CALL TO ORDER
Mayor Cornejo called the meeting to order at 6:00 p.m.
2) ROLL CALL
Members Present: Leslie Cornejo, Pedro A Chavez, Jenny Crosswhite, Carlos Juarez, and Andy Sobel
3) PUBLIC COMMENT
None.
4) CITY BUSINESS

4.A) PARKS AND RECREATION COMMISSION YOUTH INTERVIEW
Council interviewed Kassidy Straetz for the Parks and Recreation Youth Commission.
5) ADJOURNMENT
Mayor Cornejo adjourned the meeting at 6:15 p.m.

Julie Latshaw, City Clerk
ATTEST:
11 CITY OF SANTA PAULA
City Council Regular Meeting
January 10, 2024, 6:30 PM

MINUTES

REGULAR MATTERS - COUNCIL CHAMBERS
1) CALL TO ORDER
Mayor Cornejo called the meeting to order at 6:30 p.m.
2) INVOCATION
Chaplain Kay Wilson-Bolton provided the Invocation.
3) FLAG SALUTE
Councilmember Juarez led the flag salute.
4) ROLL CALL
Members Present: Leslie Cornejo, Pedro A Chavez, Jenny Crosswhite, Carlos Juarez, and Andy Sobel
5) PUBLIC COMMENT
Nicole Kearby was called to speak with concern of an error on water utility bills for several residents.

Chelsea Josmar was called to speak on concerns of illegal activity at the Green Street alley walkway.
6) PRESENTATIONS

6.A) LAW ENFORCEMENT APPRECIATION DAY
Mayor Cornejo presented a Proclamation to City of Santa Paula Police Officers for Law Enforcement Appreciation Day.

6.B) VENTURA COUNTY BROADBAND STRATEGIC PROJECT

PRESENTATION
12 Vivian Vasquez, with Economic Development Collaborative, presented a presentation on the Ventura County Broadband Strategic Project.

6.C) PUBLIC WORKS ACTIVITY REPORT FOR JULY-NOVEMBER 2023 Clete Saunier, Public Works Director, presented the Public works Activity Report for July-November 2023.
7) CITY COUNCIL REPORTS
Councilmember Sobel:

Attended the All Children Thrive; Communications Ad Hoc; National Law Enforcement Appreciation Day; and announced the upcoming open house of Blanchard Library and Farmers Market.

Councilmember Chavez;
Will provide a written report at the next meeting.

Councilmember Crosswhite:

Attended the Southern California Association of Governments Economic Summit; Harvest Project Ad Hoc; Ventura County Transportation Commission; City Selection Committee; reappointed to the Local Area Formation Commission; and announced upcoming Martin Luther King event.

Councilmember Juarez:

Attended Ventura County Regional Sanitation District; Rotary Club Christmas Baskets; Cannabis Standing Committee; ribbon cutting for Gunsmoke BBQ; Homeless and Housing Committee; Citizen Corp; Senior Advisory Committee; Police Department Appreciation Lunch; and announced upcoming CERT class.

Mayor Cornejo:

Attended County Board of Supervisor meeting where they provided a proclamation to the City of Santa Paula for the 150th celebration of the County; Clean Power Alliance; City Commission Recognition Dinner; Harding Park Advisory Board; Property Business Improvement District; interviews for Police Chief; grand opening of Gunsmoke BBQ; Law Enforcement Appreciation Day; and announced appointment of Jenny Crosswhite for a 4-year term on the Local Area Formation Commission.
8) CITY MANAGER REPORTS
City Manager Singer:

Announced the continued improvements in the Council Chamber; handout from Community & Economic Development Director and City Gate Consultant, a survey for community members input on experiences; announced the city is now owner of the Union Oil Building; and anticipates having an update on the hiring of the new Police Chief by the end of the month. 9) CONSENT CALENDAR

9.A) APPROVAL OF MINUTES

9.B) CELLULAR ADVANCED METERING INFRASTRUCTURE AND WATER

METERS PURCHASE ORDER WITH BADGER METER AND
13 AUTOMATION, INC.

Councilmember Chavez requested item 9.B pulled for discussion and separate vote.

Motion: Approve Authorizing the City Manager to sign a three-year purchase order with Badger Meter and Automation Inc. for Fiscal Years 2023-2024 through 2025-2026 with a one-year option to extend for Fiscal Year 2026-2027 for the purchase of new water meters and cellular advanced metering infrastructure (AMI) transmitters in an amount not to exceed $300,000 per fiscal year.

Moved by Carlos Juarez, seconded by Pedro A Chavez
Vote: Motion carried 5-0
Yes: Leslie Cornejo, Pedro A Chavez, Jenny Crosswhite, Carlos Juarez, Andy Sobel

9.C) SECOND READING AND ADOPTION OF ORDINANCE NO. 1332

APPROVING THE SANTA PAULA WEST BUSINESS PARK SPECIFIC

PLAN AMENDMENT
Councilmember Chavez requested item 9.B pulled for discussion and separate vote.

Motion: Approve as amended Consent Calendar items 9.A and 9.C, to include correction on the December 6, 2023 minutes.

Moved by Jenny Crosswhite, seconded by Andy Sobel
Vote: Motion carried 5-0
Yes: Leslie Cornejo, Pedro A Chavez, Jenny Crosswhite, Carlos Juarez, Andy Sobel
10) ACTION ITEMS

10.A) APPOINTMENT TO PARKS & RECREATION COMMISSION YOUTH MEMBER
Motion: Approve the appointment of Kassidy Straetz to the Parks and Recreation Youth Commission, serving January 10, 2024 through January 10, 2025.

Moved by Jenny Crosswhite, seconded by Pedro A Chavez
Vote: Motion carried 5-0
Yes: Leslie Cornejo, Pedro A Chavez, Jenny Crosswhite, Carlos Juarez, Andy Sobel

10.B) DOWNTOWN FACADE IMPROVEMENT PILOT PROGRAM
Councilmember Juarez recused himself from this item.

James Mason, Community & Economic Development Director
presented this item.

Motion: Approve as amended Resolution No.7496, striking blight, and changing the definition of historic, adding instead to the paragraph of 14 owners and tenants, and authorize the City Manager to expend $50,000 from the city's allocation of American Rescue Plan Act (ARPA) funds to provide matching grants to owners of commercial property and/or businesses located within the Downtown Property Business Improvement District to perform façade improvements or other qualified improvements.

Moved by Andy Sobel, seconded by Pedro A Chavez
Vote: Motion carried 5-0
Yes: Leslie Cornejo, Pedro A Chavez, Jenny Crosswhite, Carlos Juarez, Andy Sobel

10.C) CONSIDERATION OF A RESIDENT ACADEMY PROGRAM
Mirka Vargas, Management Fellow, presented a presentation on a Resident Academy Program.

Council was in support and provided staff with direction on the creation of a resident academy program, including an application fee with a maximum of $50.

10.D) APPOINTMENTS TO THE MAYOR’S STANDING AND AD HOC

COMMITTEES
Mayor Cornejo ratified the 2024 Standing Committees, with the following additional changes: Remove "s" from Citizen Corp and add Councilmember Sobel as an alternate; remove Mayor Cornejo and add Councilmember Sobel to the Economic Development Standing Committee; and dissolve City Facilities and Infrastructure Committee.

Council was not in support of a Public Safety Ad-Hoc Committee at this time.
11) ITEMS FOR FUTURE AGENDAS

11.A) FUTURE AGENDA ITEMS
Councilmember Chavez requested not to add an item to a future agenda, though would like to receive updates on the progress of the utility bill issue.
12) ADJOURNMENT
Mayor Cornejo adjourned the meeting at 10:00 p.m.

Julie Latshaw, City Clerk
ATTEST:
15 To: Honorable Mayor and Members of the City Council
From: Beatriz Jimenez, Assistant Finance Director
Subject: NOVEMBER 2023 WARRANTS AND CERTIFICATIONS
Date: January 24, 2024
Agenda Item: 9.B

CITY OF SANTA PAULA

MEMORANDUM
RECOMMENDATION:

Staff recommends that the City Council:

1. Review and accept the "Certification of Accounts Payable" for the accounts payable payment cycles for November 2023, starting check number 335665 and ending check number 336011.

2. Review and accept the "Certification of Salaries" for the pay period ending dates November 3rd, 2023 through November 17th, 2023.

BACKGROUND:

This staff report certifies the separation of duties between the Preparer (Accounting and Payroll Specialist) and the Reviewer (Finance Director and Assistant Finance Director).

Presented in the attached documents:
a) CERTIFICATION OF ACCOUNTS PAYABLE CHECKS by check number range and dates.

It also discloses any voided checks.
b) EXPENSE REPORTS showing the amount and funds accounts payable came from.

The "Check Report" depicts the following columns:
c) AP-ACCOUNTS PAYABLE for the vendors (non-City staff) by the vendor number, vendor name, payment date, payment amount and check number (entitled 'number'). d) PY-PAYROLL for benefit payments, insurance, retirement, etc. Benefits payable on behalf of City staff.
e) Bank Code Summary by payment type.
f) Fund Summary by fund the accounts payables utilized. 16 CERTIFICATION OF SALARIES
This is the certification (separation of duties between "preparer" and the "reviewer") of salaries and benefits (payroll checks) by fund. It lists salary (payroll) issued checks by beginning and ending check number, payroll ending dates November 3rd, 2023 through November 17th, 2023.

ANALYSIS:

See the attachments for expense breakdown by respective fund.

STRATEGIC PLAN:

None.

FISCAL IMPACTS:

None.

OPTIONS:

1. Receive and file November 2023 Certifications of Accounts Payable Checks and Certifications of Salaries.

ATTACHMENTS:

November 2023 AP & PY Certifications.pdf
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57 To: Honorable Mayor and Members of the City Council
From: Beatriz Jimenez, Assistant Finance Director
Subject: DECEMBER 2023 WARRANTS AND CERTIFICATIONS
Date: January 24, 2024
Agenda Item: 9.C

CITY OF SANTA PAULA

MEMORANDUM
RECOMMENDATION:

Staff recommends that the City Council:

1. Review and accept the "Certification of Accounts Payable" for the accounts payable payment cycles for December 2023, starting check number 336012 and ending check number 336250.

2. Review and accept the "Certification of Salaries" for the pay period ending dates December 1st, 2023 through December 15th, 2023.

BACKGROUND:

This staff report certifies the separation of duties between the Preparer (Accounting and Payroll Specialist) and the Reviewer (Finance Director and Assistant Finance Director).

Presented in the attached documents:
a) CERTIFICATION OF ACCOUNTS PAYABLE CHECKS by check number range and dates.

It also discloses any voided checks.
b) EXPENSE REPORTS showing the amount and funds accounts payable came from.

The "Check Report" depicts the following columns:
c) AP-ACCOUNTS PAYABLE for the vendors (non-City staff) by the vendor number, vendor name, payment date, payment amount and check number (entitled 'number'). d) PY-PAYROLL for benefit payments, insurance, retirement, etc. Benefits payable on behalf of City staff.
e) Bank Code Summary by payment type.
f) Fund Summary by fund the accounts payables utilized. 58 CERTIFICATION OF SALARIES
This is the certification (separation of duties between "preparer" and the "reviewer") of salaries and benefits (payroll checks) by fund. It lists salary (payroll) issued checks by beginning and ending check number, payroll ending dates December 1st, 2023 through December 15th, 2023.

ANALYSIS:

See the attachments for expense breakdown by respective fund.

STRATEGIC PLAN:

None.

FISCAL IMPACTS:

None.

OPTIONS:

1. Receive and file December 2023 Certifications of Accounts Payable Checks and Certifications of Salaries.

ATTACHMENTS:

December 2023 AP & PY Certifications.pdf
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91 To: Honorable Mayor and Members of the City Council
From: Clete Saunier, Public Works Director
Subject: PECK ROAD & HARVARD BOULEVARD TRAFFIC SIGNAL

REPLACEMENT PROJECT
Date: January 24, 2024
Agenda Item: 9.D

CITY OF SANTA PAULA

MEMORANDUM
RECOMMENDATION:

Staff recommends that the City Council:

Approve budget adjustments and allocations as recommended by staff for the Peck Road & Harvard Blvd Traffic Signal Replacement Project.

BACKGROUND:

The traffic signal system at Peck Road and Harvard Blvd / Main Street was installed in 1972 and is one of the busiest intersections in the City of Santa Paula. The existing configuration includes a traffic signal pole that is located in the median nose on the northeast leg of the intersection that is frequently hit and in need of repairs and/or replacement. Additionally, due to the age of the system, it has come to the end of its useful life with signal and controller components often difficult to source when in need of replacement.

ANALYSIS:

The Peck Road & Harvard Blvd Traffic Signal Replacement project will include upgraded signal poles, mast arms, signal heads, controller, LED lighting, ADA curb ramps, and appurtenant signage and striping. This work benefits the City by enhancing circulation and mobility in the busy intersection, improving intersection visibility and lighting and improving pedestrian facilities.

On September 21, 2022 City Council approved a $553,010 budget allocation from the American Rescue Plan Act (ARPA) Fund for the purposes of replacing the traffic signal systems at Peck Rd & Harvard Blvd and Palm Ave & Harvard Blvd. Staff is requesting that this budget be transferred to a standalone Peck Road & Harvard Boulevard Traffic Signal Replacement project as the funds are insufficient to complete both the Peck Road & Harvard Blvd and Palm Avenue & Harvard Blvd Traffic Signal Replacement Projects.

This project will be closely coordinated with the Community Bike Trail Connectivity project and is anticipated to take approximately 10 months to complete the design. The project is estimated to be bid for construction in early 2025 with construction commencing in Spring 92 2025.

STRATEGIC PLAN:

The Project supports the currently adopted Strategic Plan in achieving the following goals:

Infrastructure, Transportation & Mobility
Goal: Maintain and develop the City’s infrastructure to be safe, sustainable, innovative and cost-efficient.

This project funding allocation will facilitate improved traffic safety through one of the City’s busiest vehicular intersections.

FISCAL IMPACTS:

Staff proposes to fund this project by creating a new CIP (9382) transferring the $553,010 from account 412-5-9285-660 to a new account number 412-5-9382-290 (Design & Study) for $300,000 and 412-5-9382-660 (Construction) for $253,010.

OPTIONS:

The Council has the following available alternative options to staff’s recommendations:

1. Do not approve a budget adjustment and allocations to fund a new CIP project to address the deteriorated traffic signal at Peck Rd & Harvard Blvd. This action would significantly delay critical equipment replacement and may affect traffic operations in the event of equipment failure.

ATTACHMENTS:

Resolution_7499_Amending_The_City_s_Operating_and_CIP_Budget_for_FY2023-24.docx 93 RESOLUTION NO. 7499

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA PAULA, CALIFORNIA, AMENDING THE CITY’S OPERATING AND CIP BUDGET FOR FISCAL YEAR 2023/24.

SECTION 1: The City Council for the City of Santa Paula does resolve as follows:

A. The City Council adopted the Operating Budget and Capital Improvement program for Fiscal Year 2023/24 on June 21, 2023.

B. The Fiscal Year 2022/23 Budget revenues have increased by $3.5 million in FY 22/23 due to additional funding made available by the American Rescue Plan Act (“ARPA”).

C. The Council discussed various ways to allocate the ARPA funds in various study sessions over the past nineteen months.

D. Previous budget allocations ARPA funds for Fiscal Years 2020/21 and 2021/22 were approved by Council via Resolutions 7467, 7342, 7347, 7351, 7352, 7366, 7381, 7416, 7418, and 7479.

SECTION 2: The City Manager has proposed a budget adjustment as described in the Council report dated January 24, 2024 for Fiscal Years 2023/24 based direction provided by the City Council.

SECTION 3: The City Council has reviewed the proposed budget for use of a portion of the ARPA funds and does hereby find the recommendation to be necessary and in the City’s best interest.

SECTION 4: The City of Santa Paula’s operating and CIP Budget for Fiscal Year 2023/24 is hereby amended as follows:

GENERAL LEDGER USE OF FUNDS DESCRIPTION INCREASE DECREASE 412-5-9285-660 Harvard/Peck/Palm Project $553,010
412-5-9382-290
Harvard/Peck Traffic Design &
Study
$300,000
412-5-9382-660 Harvard/Peck Traffic Construction $253,010 SECTION 6: The City Clerk will certify to the passage and adoption of this Resolution; will enter the same in the book of original Resolutions of said City; will make a minute of the passage and adoption thereof in the record of proceedings of the City Council of said City, in the minutes of the meeting at which the same is passed and adopted. 94 PASSED, AND ADOPTED, this 24th day of January, 2024. _____________________
Leslie Cornejo, Mayor
ATTEST:
_________________________
Julie Latshaw, City Clerk
Approved as to form:
_______________________________
Monica Castillo, City Attorney
Approved as to content:
_______________________________
Dan Singer, City Manager
95 To: Honorable Mayor and Members of the City Council
From: James Mason, Community & Economic Development Director Subject: ALCOHOL ENFORCEMENT AGREEMENT FOR PROJECT 19-CUP-01, GUNSMOKE BBQ LOCATED AT 817 E. MAIN STREET
Date: January 24, 2024
Agenda Item: 9.E

CITY OF SANTA PAULA

MEMORANDUM
RECOMMENDATION:

Staff recommends that the City Council:

Approve the Enforcement Agreement for Project No. 19-CUP-01, Gunsmoke BBQ located at 817 E. Main Street.

BACKGROUND:

On July 23, 2019 the Santa Paula Planning Commission unanimously approved Resolution 3801 for Project No. 19-CUP-01 “Gunsmoke BBQ and Beer”, for a CUP to authorize a new California ABC Type 41 license (On-Sale Beer and Wine-Eating Place), located at 817 E.

Main Street (Attachment B).

The Conditional Use Permit (CUP) granted to the Applicant on July 23, 2019 by the Santa Paula Planning Commission per Resolution No. 3801 is predicated upon execution of an Enforcement Agreement between the Applicant and the City. However, i n December 2023, it was discovered that Applicant and City did not enter into an enforcement agreement approved by City Council after the CUP was granted.

In order for Applicant to sell alcoholic beverages for a brief (approximately one-month) period during the 2023 holiday season, the parties mutually desired to enter into an Enforcement Agreement (Attachment A) beginning December 8, 2023, which was to become retroactively effective if and when City Council approved the Agreement at its regular meeting on January 10, 2024.

Scheduling issues prevented the Agreement from being considered at the January 10, 2024 City Council meeting, so the item was moved to the January 24, 2024 Council agenda. The Agreement remains retroactive to December 8, 2023. No complaints or violations related to alcohol sales at this establishment have been recorded with the City during this interim period.

ANALYSIS:

Per SPMC Chapter 16.58 Alcoholic Beverage Sales, a Conditional Use Permit and 96 Enforcement Agreement are required for alcohol sales, as it is in the best interest of the citizens of the City of Santa Paula (the City) to monitor and control the sale of alcoholic beverages within the City. Enforcement Agreements have been successfully used by other California communities as a means to better monitor and enforce compliance with special conditions concerning alcohol sales.

SPMC Chapter 16.58 - Alcoholic Beverage Sales, 16.58.010(I) Development Standards and Use Conditions:

The property owner/operator/applicant and the City must enter into an enforcement agreement to facilitate the control of the sale of alcohol, inclusive of spirits, distilled liquor, beer and wine at this site before selling alcohol on the subject property. This agreement will be subject to review and approval of the City Council. The agreement must also obligate any heirs, assigns, and other future owners/operators of the establishment, or must be replaced by a new similar agreement.

The Enforcement Agreement, as reviewed by the City Attorney, is provided as Exhibit A to Attachment A. If approved, the agreement will retroactively begin on December 8, 2023.

STRATEGIC PLAN:

Assisting business with achieving operational goals addresses City Council Strategic Goal for Economic Development: Enhancing the economic vitality of the community through measures targeted towards development and business retention and expansion and attraction, resulting in diverse housing options, increased revenue generation, job creation, and a businessfriendly community.

FISCAL IMPACTS:

There is a potential loss of business and sales tax revenue if the Enforcement Agreement is not approved, as an Enforcement Agreement is required for alcohol sales.

OPTIONS:

The following alternatives are available to the City Council:

1. Make changes to Enforcement Agreement.

2. Direct staff to obtain further information or the applicant to make any requested revisions to the agreement.

3. Deny the Enforcement Agreement. A denial would prohibit the sale of alcoholic beverages at the subject location.

ATTACHMENTS:

A - Enforcement Agreement Retro Letter and Ex. A Enforcement Agreement (Gunsmoke BBQ).pdf
B - PC Resolution No. 3801 inc. Conditions of Approval.pdf C - Site Photos and Information.pdf
97 ATTACHMENT A

ENFORCEMENT AGREEMENT

RETROACTIVE LETTER
98 99
100

ATTACHMENT A

EXHIBIT A

ENFORCEMENT AGREEMENT
101
102
103
104
105
106
107
108

ATTACHMENT B
PC RESOLUTION NO. 3801 & COA’S
(PREVIOSLY EXECUTED)
109
110
111
112
113
114
115
116
117
118
119
120
121
122
123
124
125

ATTACHMENT C

SITE PHOTOS & INFORMATION
126
127
128
129
130
To: Honorable Mayor and Members of the City Council
From: Tom Tarantino, Planning & Economic Development Manager Subject: ALCOHOL ENFORCEMENT AGREEMENT FOR PROJECT 20-CUP-09 / 23-MM-03, SANTA PAULA CELLARS, LLC LOCATED AT 926 E. MAIN STREET
Date: January 24, 2024
Agenda Item: 9.F

CITY OF SANTA PAULA

MEMORANDUM
RECOMMENDATION:

Staff recommends that the City Council:

Approve the Enforcement Agreement for Project No. 20-CUP-09 / 23-MM-03 Santa Paula Cellars, LLC at 926 E. Main Street.

BACKGROUND:

On November 5, 2020, Michael and Melanie Binsley filed an application for Project No. 20- CUP-09, a Conditional Use Permit to grant a new business, "South Paseo Café" the right to sell alcohol in compliance with the California Department of Alcohol and Beverage Control (ABC) Type 41 license provisions at an existing building on a 3,216 SF lot at 926 Main Street (APN: 103-0-102-245).

On December 22, 2020, the Santa Paula Planning Commission approved Resolution 3820 for Project No. 20-CUP-09 to authorize a new California ABC Type 41 license (On-Sale Beer and Wine-Eating Place), located at 926 E. Main Street (Attachment B). However, due to the unprecedented economic and social impacts of the COVID-19 pandemic, the approved Project No. 20-CUP-09 was never implemented.

On September 13, 2023, Michael and Melanie Binsley filed an application for a Minor Modification (23-MM-03) to Project 20-CUP-09, which included a ministerial time extension and minor reconfiguration of the project plans to eliminate the proposed restaurant/café (including kitchen) and instead operate as a wine tasting room only under the Applicants’ existing California ABC Type 2 license (Winegrower) which allows for tasting rooms at locations other than where that wine is produced.

The reconfigured plans were reviewed by the City of Santa Paula Building & Safety Division and the Ventura County Fire Protection District. Further Public Works/Engineering and Planning Division reviews were determined to be unnecessary, as the reimagined project did not propose significant changes under either purview from the original approved café project (20-CUP-09). On October 9, 2023, final ministerial entitlement approval was granted for 131
Project No. 23-MM-03 (Attachment C).

Per SPMC Chapter 16.58 Alcoholic Beverage Sales, a Conditional Use Permit and Enforcement Agreement are required for alcohol sales, as it is in the best interest of the citizens of the City of Santa Paula (the City) to monitor and control the sale of alcoholic beverages within the City. Enforcement Agreements have been successfully used by other California communities as a means to better monitor and enforce compliance with special conditions concerning alcohol sales.

ANALYSIS:

The original Conditional Use Permit (20-CUP-09) granted to the Applicant on December 22, 2020 by the Santa Paula Planning Commission per Resolution No. 3820, and ministerially extended/reconfigured via Minor Modification No. 23-MM-03 on October 9, 2023, is predicated upon execution of an Enforcement Agreement between the Applicant and the City.

SPMC Chapter 16.58 - Alcoholic Beverage Sales, 16.58.010(I) Development Standards and Use Conditions:

The agreement, as reviewed by the City Attorney, is provided as Attachment A.

STRATEGIC PLAN:

FISCAL IMPACTS:

There is a potential loss of business and sales tax revenue if the Enforcement Agreement is not approved, as an Enforcement Agreement is required for alcohol sales.

OPTIONS:

The following alternatives are available to the City Council:

1. Make changes to Enforcement Agreement.

2. Direct staff to obtain further information or the applicant to make any requested revisions to the agreement.

3. Deny the Enforcement Agreement. A denial would prohibit the sale of alcoholic beverages at the subject location.
132
ATTACHMENTS:

A_-_Enforcement_Agreement__Santa_Paula_Cellars_.docx
B - PC Reso 3820 inc. COA.pdf
C - Minor Mod 23-MM-03 Approval.pdf
D - California ABC License (Binsley) and Type 2 Description.pdf E - Site Photos.pdf
F - Existing and Proposed Floor Plans 01.16.2024.pdf
133

ATTACHMENT A

ENFORCEMENT AGREEMENT

SANTA PAULA CELLARS, LLC
134

ENFORCEMENT AGREEMENT
Between
The City of Santa Paula (the City)
And (the Applicants)
Michael & Melanie Binsley
Santa Paula Cellars, LLC
For Project Nos. 20-CUP-09 / 23-MM-03
926 East Main Street, Santa Paula, CA 93060
for
California ABC Type 2 license (Winegrower) #596266
This Enforcement Agreement (“Agreement”) is entered into by the undersigned on January 24, 2024, at the City of Santa Paula, Ventura County, California based on the following recitals:

A. It is in the best interest of the citizens of the City of Santa Paula (the City) to monitor and control the sale of alcoholic beverages within the City; B. Per SPMC Chapter 16.58 - Alcoholic Beverage Sales, 16.58.010(I) Development Standards and Use Conditions:
“The property owner/operator/applicant and the City must enter into an enforcement agreement to facilitate the control of the sale of alcohol, inclusive of spirits, distilled liquor, beer and wine at this site before selling alcohol on the subject property. This agreement will be subject to review and approval of the City Council. The agreement must also obligate any heirs, assigns, and other future owners/operators of the establishment, or must be replaced by a new similar agreement.”
C. On November 5, 2020, Michael and Melanie Binsley filed an application for Project No. 20-CUP-09, a Conditional Use Permit to grant a new business, South Paseo Café, the right to sell alcohol in compliance with the California Department of Alcohol and Beverage Control Type 41 license provisions at an existing building on a 3,216 SF lot at 926 Main Street (APN: 103-0-102-245); D. On December 22, 2020, the Santa Paula Planning Commission approved Resolution No. 3820 for Project No. 20-CUP-09 “South Paseo Café”, for a CUP to authorize a new California ABC Type 41 license (On-Sale Beer and Wine-Eating Place), located at 926 E. Main Street;
E. Due to the unprecedented economic and social impacts of the COVID-19 pandemic, the approved Project No. 20-CUP-09 was never implemented; F. On September 13, 2023, Michael and Melanie Binsley filed an application for a Minor Modification (23-MM-03) to Project 20-CUP-09, which included a ministerial time 135
extension and minor reconfiguration of the project plans to eliminate the proposed restaurant/café (including kitchen) and instead operate as a wine tasting room only under the Applicants’ existing California ABC Type 2 license (Winegrower) which allows for tasting rooms at locations other than where that wine is produced; G. The reconfigured plans were reviewed by the City of Santa Paula Building & Safety Division and the Ventura County Fire Protection District. Further Public Works/Engineering and Planning Division reviews were determined to be unnecessary, as the reimagined project did not propose significant changes under either department’s purview from the original approved café project (20-CUP-09).

On October 9, 2023, final ministerial entitlement approval was granted for Project No. 23-MM-03;
H. The original Conditional Use Permit (20-CUP-09) granted to the Applicant on December 22, 2020 by the Santa Paula Planning Commission per Resolution No. 3820, and ministerially extended/reconfigured via Minor Modification No. 23-MM-03 on October 9, 2023, is predicated upon execution of an Enforcement Agreement between the Applicant and the City; and
I. Enforcement agreements have been successfully used by other California communities as a means to better monitor and enforce compliance with special conditions concerning alcohol sales.

NOW THEREFORE, the parties agree to the following:

I) PUBLIC DOCUMENT
This Agreement is a public document. A copy of this Agreement must be kept at all times on the premises, and must be made available for review immediately upon request by law enforcement personnel and members of the public. Failure by the Applicant or employees of the Applicant to produce a copy of this Agreement when asked to do so by a law enforcement officer shall be deemed a violation of the Agreement.

II) CONDITIONS
Failure to comply with any of the conditions set forth below is a breach of this agreement and a violation of the CUP. Each failure by the Applicant to comply with any one condition listed below must be considered an individual and separate breach of this Agreement.
a) The Applicant and all licensees, sublessees, must adhere to the Conditional Use Permit (CUP) granted to the Applicant under Santa Paula Planning Commission Resolution No. 3820 and Minor Modification No. 23-MM-03 (attached). b) The Applicant and all licensees, sub lessees, must have a current, valid Alcohol Beverage Control license in order to serve alcoholic beverages. c) The Applicant and all licensees, sublessees, and their employees or agents who engage in the sale of on-site alcoholic beverages to the public must complete a course in Responsible Beverage Service (RBS) or equivalent such as Licensee Education on Alcohol and Drugs (LEAD), Learn2Serve (program may be done 136
online) and in-restaurant training within thirty (30) days of the granting of a license and/or date of employment.
d) Unless explicitly approved by the City, there must be no advertising of alcoholic beverages, or promoting or indicating the availability of alcoholic beverages, visible outside of the establishment, including advertising directed to the exterior from the interior. The foregoing must not be deemed to preclude interior advertising not directed to the exterior, but which is incidentally visible outside the establishment.
e) Sale and consumption of alcoholic beverages shall be governed by the California Department of Alcoholic Beverage Control license type, per California Business and Professions Code, Article 3. Rights and Obligations of Licensees § 23355 - 23405.4 as it relates to on-sale and off-sale alcoholic beverages, and, any other requirements per CA ABC.
f) A copy of these conditions must be maintained on the premises and made available upon the demand of any peace officer.

III) BREACH OF THIS AGREEMENT
A breach of any condition listed in Section II (Conditions) above is a breach of this Agreement and a violation of the Applicants' Conditional Use Permit (CUP), which may result in the amendment or revocation of the CUP. This Agreement shall be immediately terminated upon revocation of Applicant’s CUP.

IV) ENFORCEMENT
For each breach of the Agreement, the Applicant must pay a fine of five hundred dollars ($500.00). Each breach constitutes substantial and sufficient evidence for the Planning Commission to amend or revoke the Applicants' Conditional Use Permit.

In addition, the Police Department may stop the sale of alcohol for noncompliance with conditions or problems arising from the consumption of alcohol or entertainment.

V) ENFORCEMENT COSTS
Enforcement costs incurred by the City caused by noncompliance with the Agreement by the Applicant, and including but not limited to citations for violations, issuance and collection of fines or other penalties, and related administrative paperwork and bookkeeping, must be fully recoverable by the City from the Applicant based upon a schedule of fully allocated hourly rates.

VI) APPEALS
Any violation or breach by the Applicant of the Agreement may be appealed in writing to the Planning Commission. The appeal must be filed in the office of the Community and Economic Development Department within ten (10) calendar days of the notice of the violation(s) being sent. Failure to file a timely written appeal constitutes a waiver of any right of appeal. The appeal fee to the Planning Commission is required and is the responsibility of the appellant. The appeal fee is per the approved Fee Schedule in effect at the time of appeal filing.
137

VII) AMENDMENTS
No amendment, modification, or supplement to this Agreement shall be binding on any of the parties unless it is in writing and signed by authorized representatives of the parties in interest at the time of the modification.

VIII) BINDING EFFECT
Each and all of the provisions hereof must be binding on and inure to the benefit of the parties hereto and their respective heirs, executors, administrators, successors, and permitted assigns.

IX) FORCE MAJEURE
No party will be liable for any failure to perform its obligations in connection with any action described in this Agreement, if such failure results from any act of God, riot, war, civil unrest, flood, earthquake, or other cause beyond such party's reasonable control (including any mechanical, electronic, or communications failure, but excluding failure caused by a party's financial condition or negligence).

X) WAIVER OF BREACH
No waiver of any provision or consent to any action will constitute a waiver of any other provision or consent to any other action, whether or not similar. No waiver or consent shall constitute a continuing waiver or consent or commit a party to provide a waiver in the future except to the extent specifically set forth in writing. Any waiver given by a party shall be null and void if the party requesting such waiver has not provided a full and complete disclosure of all material facts relevant to the waiver requested.

XI) ENTIRE AGREEMENT
This Agreement and all Exhibits hereto, as well as agreements and other documents referred to in this Agreement constitute the entire agreement between the parties with regard to the subject matter hereof and thereof. This Agreement supersedes all previous agreements between or among the parties. There are no agreements, representations, or warranties between or among the parties other than those set forth in this Agreement or the documents and agreements referred to in this Agreement.

XII) SEVERABILITY
If any term or provision of this Agreement is determined to be illegal, unenforceable, or invalid in whole or in part for any reason, such illegal, unenforceable, or invalid provisions or part thereof will be stricken from this Agreement, and such provision will not affect the legality, enforceability, or validity of the remainder of this Agreement. If any provision or part thereof of this Agreement is stricken in accordance with the provisions of this section, then this stricken provision will be replaced, to the extent possible, with a legal, enforceable, and valid provision that is as similar in tenor to the stricken provision as is legally possible.

XIII) GOVERNING LAW
This Agreement will be governed by and construed under the laws of the State of California, irrespective of such state's choice of law principles. 138

XIV) CONSTRUCTION
The terms of this Agreement have been negotiated by the parties hereto and the language used in this Agreement shall be deemed to be the language chosen by the parties hereto to express their mutual intent. This Agreement shall be construed without regard to any presumption or rule requiring construction against the party causing such instrument or any portion thereof to be drafted, or in favor of the party receiving a particular benefit under this Agreement. No rule or strict construction will be applied against any person.

XV) TRUTHFULNESS
The recitals set forth at the beginning of this Agreement of any matters or facts shall be conclusive proof of the truthfulness thereof and the terms and conditions set forth in the recitals, if any, will be deemed a part of the Agreement.

XVI) REPRESENTATION BY COUNSEL
Each party has been represented by counsel in the negotiation and execution of this Agreement. This Agreement was executed voluntarily without any duress or undue influence on the part of or on behalf of the parties hereto. The parties acknowledge that they have read and understood this Agreement and its legal effect. Each party acknowledges that it has had a reasonable opportunity to obtain independent legal counsel for advice and representation in connection with this Agreement. Each party further acknowledges that it is not relying on and it is not for the purposes of the negotiation, execution, and delivery of this Agreement, a client of the legal counsel employed by any of the other parties to this Agreement.

XVII) COUNTERPARTS
This Agreement may be executed in two or more counterparts, each of which must be deemed an original, but all of which together will constitute one and the same instrument.

This Agreement will not be effective until the execution and delivery between each of the parties of at least one set of counterparts. The parties authorize each other to detach and combine original signatures pages and consolidate them into a single identical original.

Any one of such completely executed counterparts will be sufficient proof this Agreement. [SIGNATURES ON NEXT PAGE]
139

SIGNATURE PAGE TO ENFORCEMENT AGREEMENT

WITH SANTA PAULA CELLARS, LLC
Michael & Melanie Binsley
Owner/Applicant(s)
Santa Paula Cellars, LLC
Date:

CITY OF SANTA PAULA:

Dan Singer
City Manager
APPROVED AS TO FORM:

Monica Castillo
City Attorney
140

ATTACHMENT B
PLANNING COMMISSION RESOLUTION NO. 3820 + COA’S
141
RESOLUTION NO. 3820

A RESOLUTION OF THE SANTA PAULA PLANNING COMMISSION APPROVING A CONDITIONAL USE PERMIT ADOPT RESOLUTION NO. 3820 APPROVING CONDITIONAL USE PERMIT NO. 2020-CUP-09 TO GRANT A NEW BUSINESS, SOUTH PASEO CAFÉ THE RIGHT TO SELL ALCOHOL IN COMPLIANCE WITH

THE CALIFORNIA DEPARTMENT OF ALCOHOL AND BEVERAGE CONTROL TYPE 41 LICENSE PROVISIONS
The Planning Commission of the City of Santa Paula does resolve as follows:

SECTION 1: The Planning Commission finds and declares that:

A. On November 5, 2020, Michael and Melanie Binsley (Proprietors “South Paseo Cafe”) filed an application for Project No. 2020-CUP-09, a Conditional Use Permit to grant a new business, South Paseo Café the right to sell alcohol in compliance with the California Department of Alcohol and Beverage Control Type 41 license provisions at an existing building on a 3,216 SF lot at 926 Main Street (APN: 103-0-102-245)
B. The General Plan (1998) land use designation for the property is Central Business and the zoning district is CBD (Central Business District), and without any overlay zones;
C. The Project was reviewed by City’s Planning Division for, in part, consistency with the General Plan and conformity with the Santa Paula Municipal Code; D. The City Planning Division reviewed the project’s environmental impacts under the California Environmental Quality Act (Public Resources Code §§ 21000, et seq., “CEQA”), the regulations promulgated there under (14 Cal. Code of Regulations §§15000, et seq., the “CEQA Guidelines”), and the City’s Environmental Guidelines (“Santa Paula Guidelines”; CEQA, CEQA Guidelines and Santa Paula Guidelines collectively referred to as “CEQA Regulations”); E. The Planning Division completed its review and scheduled a public hearing regarding the application before this Commission for December 22, 2020; F. On December 22, 2020 the Commission opened a public hearing to receive public testimony and other evidence regarding the application including without limitation, information provided to the Commission by the Applicant; G. The Commission considered the information provided by City staff, public testimony, and the Applicant’s representative. This Resolution, and its findings, are made based upon the evidence presented to the Commission at its 142
December 22, 2020 hearing including, without limitation, the staff report submitted by the Planning Division.

SECTION 2: Factual Findings and Conclusions. Pursuant to the SPMC Chapter 16 Development Code, the Planning Commission finds that the following facts exist:

A. The subject property is a rectangular .07-acre (3,216-sf) lot at 926 E Main Street St (APN: 103-0-102-245), bounded by commercial property on two sides (west and east). The surrounding area has been developed for decades and in continuous use as predominantly commercial.

B. The site supports an existing building built in 1920 to the property lines. The alcohol license and conditional use permit apply to this facility only.

C. The South Paseo Café would be a new business in Santa Paula offering beer and wine on-site retail sales. It would provide an indoor food service for both off- and onsite consumption, an enclosed outdoor courtyard, a kitchen and two restrooms.

D. The facility would operate under a California Department of Alcohol and Beverage Control Type 41 on sale license.

E. The project is in an area where all public services and facilities are available to allow for maximum development permissible in the General Plan; F. The Project would be required to comply with all applicable development standards and be constructed in accordance with contemporary building codes and City policies;
G. The proposed uses, and business operations and activities are consistent with the uses allowed on the property and are not anticipated to result in any significant level of damage or nuisance from noise, glare, smoke, odors, fumes, dust, or vibration.

Additionally, the potential for hazards to persons or property from explosion, contamination or fire would be considered to be of relatively low risk. The Ventura County Fire Protection District will review the Project for fire safety purposes and determine how fire risks will be mitigated with the addition of required building improvements (such as fire sprinklers and mechanical ventilation).

H. Adherence with the recommended Conditions of Approval, included herein, will ensure that the proposed Project will avoid health and safety risks to persons and/or property in the Project vicinity.

SECTION 3: General Plan and Zoning. The proposed project conforms to the City’s General Plan and Title 16 of the SPMC as follows:

A. The Santa Paula General Plan (2040) land use designation for the property is Commercial. The zoning district is CBD (Central Business) which is consistent with 143
the corresponding General Plan land use designation. The subject property is not within any overlay zones.

B. Pursuant to the General Plan (2040), the purpose of the Central Business land use category is to provide a pedestrian-scale commercial district with an emphasis on small-scale businesses intended to serve the local community and tourists. The character of the CBD zone is intended to be that which promotes the historic identity of the past through the creation of an identifiable downtown and an emphasis on architectural style. The CBD zone will support a mix of complementary retail, service, office, civic, cultural, and residential uses. Commercial use such as that proposed are encouraged to concentrate in the Downtown Plan District.

C. Pursuant to SPMC § 16.15.020 Land Use And Permit Requirements, Table 15-1, Permitted and Conditional Uses - Commercial Zones, the proposed project is considered a “Restaurant” which is permitted by-right. However, per SPMC §

16.58.010(A) Development Standards and Use Conditions, “All new sales of alcohol, with the exception of temporary sales as specified in § 16.58.030 of this chapter, must obtain a Conditional Use Permit.” Thus, the proposed business must obtain a Conditional Use Permit.

D. The proposed business would operate under a California Department of Alcohol and Beverage Control Type 41 (Restaurant) on sale license which Authorizes the sale of beer and wine for consumption on or off the premises where sold. Distilled spirits may not be on the premises (except brandy, rum, or liqueurs for use solely for cooking purposes). Must operate and maintain the licensed premises as a bona fide eating place. Must maintain suitable kitchen facilities, and must make actual and substantial sales of meals for consumption on the premises. Minors are allowed on the premises.

E. Pursuant to SPMC § 16.58.010(B) Development Standards and Use Conditions, a new alcohol sales use may only be established in a location such that the proposed use will not contribute to undue concentration of such uses in an area where additional such uses would be undesirable, with consideration to be given to the area's function and character, problems of crime and loitering, traffic problems and capacity.

The Project site is located in Census Tract 6 of the California Department of Alcoholic Beverage Control’s (ABC) license grid for the City of Santa Paula.

According to Department of Alcohol and Beverage Control (Form ABC-245 Section 23958.4 B & P) as of November 16, 2020, Census Tract 6 allowed 7 on sale licenses and 16 existed. Therefore, according to ABC Census Tract 6 is over concentrated with on sale licenses. Though over concentrated with on sale licenses, ABC may still approve the application if the proposal is desirable considering public convenience and necessity at this particular location.

The Planning Commission finds the following in support of the proposal complying 144
with this standard:
i. Proximity. Census Tract 6 is approximately .7 square miles (448 acres) and contains a population of 5,900 persons. Staff have reviewed ABC licenses proximate to the subject site find that with the recent closure of a licensed facility (Garmin’s Pub) the proposal would not result in a net increase of on sale premises in the immediate vicinity. Other businesses with on sale alcohol licenses include: The Draft at Mupu Grill (abutting the site to the east), Rabalais Bistro at 851 Main Street, Los Arcos at 978 E. Main Street, La Terraza at 1000 E. Main Street, La Tapatia at 1069 E. Main Street, Chapala at 249 S Tenth Street and Tlaquepaque Restaurant at 116 S. Mill Street. ii. Area Function and Character. The proposed interior alterations and improvements will enhance area function and character by revitalizing an under-utilized site with human-scale accommodations (spill-out activity in interior courtyard and sidewalk). Exterior building activity is common throughout the Downtown Plan District and in the immediate vicinity, particularly given the site’s pivotal north-south paseo linkage between Main St and the abutting neighborhood.
iii. Desirability of Use. The proposed use will compatibly augment retail choice in the neighborhood by extending the hours of operation for sales of convenience items – coffee and food accompanied by wine and beer sales.

The proposal would diversify consumer choice and enhance economic development in a manner reinforcing land use compatibility within the Downtown Plan District.
iv. Traffic and Capacity. The proposal does not trigger additional parking pursuant to SPMC Chapter 16.46 Off Street Parking. The site’s location at the confluence of Main Street and N-S paseo will diversify pedestrian access to surface parking both north and south of the subject site. v. Crime and Loitering. Presently, the vacant building is an attractive nuisance for homeless and loitering. Increased on-site human activity and the proposed security measures will undoubtedly enhance Crime Prevention Through Environmental Design through such measures as increased natural surveillance, natural access control, territorial reinforcement and maintenance.

F. Enforcement Agreement required. Pursuant to SPMC § 16.58.010(I) Development Standards and Use Conditions, for any use providing alcohol beverage sales for either on-site or off-site consumption, the property owner/operator/applicant and the City must enter into an Enforcement Agreement to facilitate the control of the sale of alcohol, inclusive of spirits, distilled liquor, beer and wine at this site before selling alcohol on the subject property. This agreement will be subject to review and approval of the City Council. The agreement must also obligate any heirs, assigns, 145
and other future owners/operators of the establishment, or must be replaced by a new similar agreement.

G. The proposed use is consistent with the objectives, policies, general land uses, and programs of the Santa Paula General Plan (2040), as mentioned above in Section 3:

General Plan and Zoning:
 Land Use Element, Community Character and Urban Form: LU1  Land Use Element, Balanced Land Use & Economic Opportunity: LU3  Land Use Element, Downtown Revitalization: LU5
 Circulation Element, Encourage Pedestrian Activity: CM 3.2.

SECTION 4: Conditional Use Permit. Pursuant to SPMC §16.218.040, the Planning Commission makes the following findings:

1. The proposed use at the particular location is necessary or desirable to provide a service or facilities that will contribute to the general convenience or welfare of the neighborhood or the community;
Consistent. The proposed café with spill-out into the interior plaza and sidewalk would activate a currently vacant building and sidewalk within the Downtown Plan District at a pivotal linkage point at the south paseo. Generally, a convenience oriented food service facility and event center would augment the City’s downtown core, thereby diversifying business activity and sustaining commercial vitality within the City of Santa Paula. Overall, the services and employment generated by a café would contribute to the general convenience or welfare of the neighborhood or the community.

2. The characteristics of the proposed use are not unreasonably incompatible with the types of use permitted in the surrounding areas;
Consistent. Though currently underutilized, the site has been occupied for decades as retail uses. The proposed use would continue this general land use character and intensity by generating comparable type, quantity or duration of human activity on the site and vicinity. The proposed a new business, café and wine tasting would deliver pedestrian-oriented activity characteristic of the Downtown Plan District to an under-utilized developed lot within the City’s oldest commercial corridor. As proposed, the site would host a variety of daytime and evening activity consistent with the surrounding mixed land uses.

3. The proposed use is consistent with the objectives, policies, general land uses, and programs of the Santa Paula General Plan; and
Consistent. The proposed new uses, site improvements, and development conditions are respectful and compliant with the relevant sections of the governing General Plan (2040), and, the Santa Paula Municipal Code, where applicable. As 146
proposed the project complies, or is legally nonconforming, with the applicable development policies and provisions including land use, setbacks, aesthetics, height, noise, and health and safety. The characteristics of the proposal are neither unreasonably incompatible with the types of uses permitted at the project site nor the surrounding Downtown Plan District zoned area. The proposed use is consistent with the objectives, policies, general land uses, particularly the following:
 Land Use Element, Community Character and Urban Form: LU1  Land Use Element, Balanced Land Use & Economic Opportunity: LU3  Land Use Element, Downtown Revitalization: LU5
 Circulation Element, Encourage Pedestrian Activity: CM 3.2.

4. The proposed use will not, under the circumstances of the particular case be detrimental to the health, safety, or general welfare of persons residing or working in the vicinity or injurious to property or improvements in the vicinity.

Consistent. The proposed use will not be detrimental to the health, safety, or general welfare because as proposed and conditioned, the project will comply with all current Planning, Building & Safety, Public Works, Fire, Police and Development Code requirements.

SECTION 5: Environmental Assessment. The proposed Project is Categorically Exempt from the requirements of CEQA, pursuant to the Santa Paula Guidelines and CEQA Guidelines, §15301, (Class 1, Existing Facilities) since the Project involves interior tenant improvements on an existing building consisting of the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of use.

SECTION 6: Approval. Subject to the conditions listed on the attached Exhibit “A,” which are incorporated into this Resolution by reference, the Planning Commission grants a Conditional Use Permit for Project No. 2020-CUP-09.

SECTION 7: This Resolution will remain effective until superseded by a subsequent resolution.

SECTION 8: The Commission Secretary is directed to mail a copy of this Resolution to the Applicant and to any other person(s) requesting a copy.

SECTION 9: The action of the Planning Commission may be appealed to the City Council within ten (10) calendar days of said action. The appeal fee to the City Council is $5,000. All appeals must be in writing and filed with the City Clerk within this time period. Failure to file a timely written appeal constitutes a waiver of any right of appeal. 147
148

EXHIBIT A
RESOLUTION 3820 CONDITIONS OF APPROVAL
149
RESOLUTION NO. 3820

CONDITIONS OF APPROVAL
Project No. 2020-CUP-09
South Paseo Café
926 E Main Street
(APN: 103-0-102-245)
In addition to all applicable provisions of the Santa Paula Municipal Code (“SPMC”), Michael and Melanie Binsley, proprietors of South Paseo Café (Applicant) agrees for themselves, heirs and assigns that they will comply with the following provisions as Conditions for the City of Santa Paula’s Approval of
Project No. 20-CUP-09 (“Project Conditions”).

I. GENERAL CONDITIONS

1. Awareness. The Resolution and these associated Conditions of Approval have been adopted with the knowledge, understanding and consent of the Property Owner/Applicant.

2. Compliance. The Property Owner/Applicant must comply with all applicable ordinances, codes, regulations, policies, and conditions (including those herein) and pay all applicable fees and assessments to the City.

3. Violation. The Property Owner/Applicant’s failure to comply with, or breach of, any Project Conditions may result in the amendment or revocation of this Permit, or any related permits, or other enforcement action, as may be appropriate in the case. The City may undertake such acts and incur such expenses as it may consider necessary to effect compliance, the cost thereof including without limitation, administration costs and recoverable attorney’s fees, to be reimbursed by the applicant or current property owners, as may be appropriate in the case.

4. Scrutiny. This permit is subject to an ongoing review. If at any time valid, substantiated complaints are received, a public hearing may be held before the Planning Commission, at the sole discretion of the City, to determine if any condition or the permit should be modified, amended or revoked.

5. Assignment. The permit is granted for the subject Property only and is not transferable.

II. PAYMENT OF CHARGES, FEES, AND DEPOSITS
Standard Requirements:

6. Mitigation Fees #1 – Public Works Water & Sewer Fees. Before issuance of grading permits, or building permits (as applicable), the owner/applicant must pay the total 150
estimated Public Works Water & Sewer Capital Facilities Fees in accordance with SPMC Chapter 160: Development Impact Fees. The Building & Safety Division will compute the fees as part of the Grading Permit/ Building Permit process.

7. Mitigation Fees #2 – all other Fees. Before issuance of building permits, the owner/applicant must pay the total estimated mitigation fees in accordance with SPMC Chapter 160: Development Impact Fees. The Building & Safety Division will compute the fees as part of the Building Permit process.

The phrase “all other Fees” excludes the Public Works Water & Sewer Capital Facilities Fees as referenced in CoA Mitigation Fees #1 – Public Works Water & Sewer Fees.

8. City Fees & Charges. Before the final inspection and/or occupancy, all Department’s/Division’s (Building & Safety, Planning, Public Works, and Legal) Project Review & Plan Check fees and charges must be paid in full.

9. Fees – Inspection Services. Before the final inspection and/or occupancy, all fees for Inspection Services shall be paid in full.

III. FINANCE
Standard Requirements:

10.Point of Sale. Concurrent with obtaining a City business license, all the businesses affiliated or located at the subject property must register the City of Santa Paula as the point-of-sale for every sales transaction associated with this permit and all sales taxes collected for such sales must be registered as having been collected in the City. Every year, biannually (at the end of June and December) a summary sales report (in paper and electronic form) must be generated listing all sales transactions, tax amounts, and affiliated tax rates, to be submitted to the Finance Department.

Failure to submit the reports on-time will result in a suspension of the business license(s).

11.Resale Permit. Concurrent with obtaining a City business license, the owner(s) all businesses affiliated or located at the subject property will submit a certified copy of the most current and valid State Board of Equalization Resale Permit for registration with the Finance Department on an annual basis.

IV. BUILDING AND SAFETY
Standard Requirements:

12.Building Codes. The project must comply with all applicable International, Administrative, and California codes as adopted by the City, including without 151
limitation Fire, Building, Plumbing, Mechanical, Electrical, Energy, Green; and Accessibility codes.

13.Conformity. Plans submitted for building permits must conform to all the Conditions of Approval as approved by the Planning Commission.

14.CoAs on Plans. Before the issuance of building permits, plans submitted to the Building & Safety Division for building permits must have the Conditions of Approval printed directly onto the building plans and the Project number, “2020-CUP-09,” in the title blocks of the blueprints for this Project.

V. FIRE (VCFPD)
Standard Requirements:

15.Related Permits. Project must comply with all applicable Santa Paula Municipal and California Fire Code requirements. Obtain any required Ventura County Fire Protection District permits.

Ref. California Fire Code Sec. 105.1.1

16.Addressing. The building shall be addressed with Ventura County Fire Protection District approved numbers a minimum of 10” inches (commercial and industrial buildings) in height, 5” inches in width, and minimum letter stroke of 1” inch, plainly visible and legible from the street or road fronting the property, said numbers shall contrast with their background and not be located on doors or other surfaces where they will be obstructed from view. On commercial buildings, which are serviced by an alley, the address shall also be posted over the rear door. If the building is located in a remote area with no street lighting or insufficient background lighting to illuminate the address, then the address shall be illuminated for nighttime recognition. The address location and style shall be shown on the elevation drawings.

Ref. California Fire Code 505.1. / VCFPD Standard 14.4.1, Chapter 6

17.Fire Extinguishers. Install portable fire extinguishers per NFPA #10. The extinguishers shall be a minimum size of 2:A.10-BC and located inside the building, one near each required exits and at specified travel distances per NFPA. Additional fire extinguishers, larger sizes or different locations may be required by the Santa Paula Fire Prevention Bureau due to the findings of onsite inspections.

Ref. California Fire Code Sec. 906.1

18.Smoke Detectors. A monitored smoke detection system, approved by the State Fire Marshal, shall be installed and properly maintained; said devices shall be hard wired into the buildings electrical system and be provided with a battery back-up.

Ref. California Building Code Sec. 907

19.Exit Signs. All required exits shall be identified with exit signs. 152
Ref. California Fire Code Sec. 1011.1

20.Emergency Exit Signs. All required Exit ways and aisles shall be equipped with Exit way emergency lighting, providing emergency power during power failures.

Ref. California Fire Code Sec. 1011.6.3

21.Meter Protection. Aboveground gas meters, regulators and piping exposed to vehicular damage due to proximity to alleys, driveways or parking areas shall be protected in an approved manner.

Ref. California Fire Code Sec. 603.9

22.Water Supply. Adequate water supply must be established prior to any permitted use or occupancy of the main building(s).

23.Dumpster Siting. Dumpsters shall not be stored in buildings or placed within 5-feet of combustible walls, openings or combustible roof eave lines.

Ref. California Fire Code Sec. 304.3.3
VI. PLANNING
Requirements Specific to This Project:

24.Appearances. The applicant must comply with the following:
a. Provide adequate trash and recycling containers to reduce litter; b. No signs advertising any kind of alcoholic beverage, which will be easily visible from the exterior of the business; and
c. Windows must be kept free of signs and other obstructions to allow visual inspection from the outside.

25.CA ABC License Required. Before the on-site production and sale of alcohol may commence, the Applicants must obtain California Department of Alcoholic Beverage Control alcohol license Type 41 (on sale) for the subject location at 926 E Main St.

26.CA ABC License Status. Within 7 calendar days of CA ABC status change, the Applicant must notify the Planning Director in writing of any change in the status of its CA ABC license, including any change in the type of license and/or permittee.

27.Enforcement Agreement. The Property Owner/Applicant and the City must enter into an Enforcement Agreement to facilitate the control of the sale of alcohol, inclusive of beer and wine (including hard cider) at this site before selling alcohol on the subject property. This agreement will be subject to review and approval of the City Council.

The Agreement must also obligate any heirs, assigns, and other future owners/operators of the establishment, or must be replaced by a new agreement. 153
Standard Requirements:

28.Signatory. Before submitting plans to the Building and Safety Division for Plan Check, the Applicant must sign the Conditions of Approval and return the wet signature to the Planning Division.

29.Future Compliance. Prior to issuance of any site development permit related to this planning entitlement, the Applicant must demonstrate compliance with all applicable provisions of Title XVI: Development Code of the Santa Paula Municipal Code.

30.Substantial Conformance. At the determination of the Community Development Director or designee, all future documentation submitted to the City under authority granted by this planning entitlement must substantially conform with the approved drawings and technical material submitted and approved conditionally herein.

31.Haz Mat. Before the final inspection and/or occupancy, the Applicant shall receive final approval from the Ventura County Certified Unified Program Agency (CUPA) / Hazardous Materials Program for all on-site business activities and operations. http://www.vcrma.org/envhealth/cupa/index.html

32.Air Quality. Before the final inspection and/or occupancy, the Applicant shall receive final approval of an Occupancy Permit from the Ventura County Air Pollution Control District (VCAPCD) for all on-site business activities and operations, per CGC 65850.2(c) and AB3205.
http://www.vcapcd.org/occup_prmt.htm
VII. PUBLIC WORKS
Standard Requirements:

33.Related Permits. The Property Owner/Applicant must obtain all applicable Public Works permits, such as Encroachment Permits for work in the Public Right-of-Way.

VIII. BEFORE FINAL INSPECTION
Standard Requirements:

34.Damage Replacement. Before the final inspection and/or occupancy, the Applicant must remove and replace any part of existing public improvements damaged during construction of this development.

35.Ventura County Environmental Health. Before the final inspection and/or occupancy, the business must receive approval by the Ventura County Environmental Health Division.
154
155

ATTACHMENT C
MINOR MODIFICATION NO. 23-MM-03 APPROVAL
156
Citrus Capital of the World City of Santa Paula Community & Economic Development 200 South 10th Street, Santa Paula, California 93060 · Mail: P.O. Box 569 | 93061 · Tel. (805) 933-4214 · Fax (805) 933-8793 · www.spcity.org November 2, 2023

VIA EMAIL
TO: Michael Binsley
Santa Paula Cellars, LLC
[email protected]
RE: NOTICE OF FINAL ACTION, PLANNING DIVISION: Approval of Project No. 23-MM-03 Time Extension for Project 20-CUP-09 + Minor Modification of extended project CUP Dear Mr. Binsley:

On September 29, 2023, the Santa Paula Planning Division ministerially approved Project No. 23-MM-03: Time Extension (12 months) for originating Project 20-CUP-09 (926 E. Main St. restaurant business “South Paseo Café” and ABC Type-41 license) and Minor Modification of the renewed Conditional Use Permit to allow for a less intensive use as a wine tasting room without food preparation facilities (“Santa Paula Cellars”) in compliance with provisions of the owner’s existing ABC Type-2 license.

Pursuant to SPMC §16.232.030(B), Planning Division’s approval was final and effective at 5:30 PM on October 9, 2023, following the end of the required appeal period. No appeal was filed.

This time extension extends the entitlements for Project No. 20-CUP-09 to October 9, 2024. Consideration in this decision was given by the Director regarding the residual effects of the COVID-19 pandemic, and the processing delays caused by the City’s ongoing staffing shortage. The Planning Division also recognizes the permitted operation of a similar business, Anna’s Cider, under an ABC Type-2 license, directly across the street from this project’s proposed location.

All remaining applicable approvals (including, but not limited to, Santa Paula Building & Safety Division, Ventura County Fire Prevention Bureau, and California Alcoholic Beverage Control) must also be obtained for the renewed/revised project. The enforcement agreement required under 20-CUP-09 must also be executed prior to opening.

This represents the final extension for the original project. Should this extension lapse, a new project submittal and Planning Commission (and/or City Council) approval will be required.

Please reach out to me with any questions or concerns regarding your permit(s) or process.

Best,
Tom Tarantino
Planning & Economic Development Manager
(805) 933-4214 x215
[email protected]
Cc: James Mason, Community & Economic Development Director Project file
157

ATTACHMENT D

CALIFORNIA ABC LICENSE (BINSLEY)
& TYPE 2 DESCRIPTION
158
License Details | Alcoholic Beverage Control https://www.abc.ca.gov/licensing/license-lookup/single-license/?RPT... 1 of 1 1/16/2024, 1:57 PM
159
160

ATTACHMENT E

SITE PHOTOS
161
FRONT (from Main St.) – stock photo
REAR (from alley) – stock photo
162

ATTACHMENT F

PROPOSED FLOOR PLAN
163
PF
WH
UP

EXISTING BASEMENT

STORAGE
EXISTING & PROPOSED FLOOR PLAN - NO CHANGE TO PROPOSED FLOOR PLAN; LIFT
46' - 5"
12' - 11 1/2"
19' - 7 1/2" 27' - 0"
29' - 0"
54' - 2"
PASEO
RETAIL

ELECTRICAL

LIFT TO BASEMENT

TOILET ROOM

TOILET ROOM UTILITY

TELEPHONE
FIRE
RISER
27' - 8" 36' - 7"

OPEN COURTYARD PATIO
OFFICE
PASEO

SECURITY
GATE
DN
DN
DN
DN
DN

WALKWAY
DRAIN
THIS DOCUMENT AND THE IDEAS AND DESIGNS INCORPORATED HEREIN, AS INSTRUMENTS OF PROFESSIONAL SERVICE, ARE THE PROPERTY OF ANDERSON KULWIEC APPLEBY ARCHITECTS AND ARE NOT TO BE USED, IN WHOLE OR IN PART, FOR ANY PROJECT WITHOUT THE WRITTEN AUTHORIZATION OF ANDERSON KULWIEC APPLEBY ARCHITECTS. 1 9-12-2023
A
1 BC
2 3
DE
1 2 3
4 5 6
ABC
4 5 6
DE
Consultants:

ISSUE RECORDNum Date DescriptionCOPYRIGHT 2023Drawn by:Checked by:CAD File Name:Sheet Title:Date:Sheet Number:
16 JANUARY 2024
DATE: DRAWING PATH:
854 East Main Street, Suite 100Santa Paula, California 93060(805) 933-0225(805) 933-6609 FAXANDERSONDavid Anderson A.I.A., ArchitectMarilyn Appleby A.I.A., ArchitectARCHITECTUREPLANNINGINTERIOR DESIGNARCHITECTSKULWIECAPPLEBY Architect's Project Number:

Owner:

Date

REVISIONS
Description
2023-109926 East Main StreetSanta Paula, California 93060Santa Paula, California 93060MICHAEL BINSLEY Project:SANTA PAULA CELLARS

CONSTRUCTION DOCUMENTS

SUBMIT FOR MINOR MOD
Z:\AcadProjects\AK\2023\2023-109 - Santa Paula Cellars\03 REVIT\2023-109 - Santa Paula Cellars - CD-rev.rvt 1/16/2024 1:25:42 PM SD-201EXISTING FLOORPLAN
Checker
Author
SD-201 1/4" = 1'-0"
C1 EXISTING BASEMENT PLAN
SD-201 1/4" = 1'-0"
A1 EXISTING FLOOR PLAN 0 2' 4' 8'
SCALE: 1/4" = 1'-0"
164
WH

STORAGE CELLAR (BELOW)
755 SF / 300 = 3 OCC.

TASTING

STORAGE

PATIO TASTING

OFFICE / STORAGE

WALKWAY WINE DISPLAY
TRASH
BAR
280 SF / 60 = 5 OCC
232 SF / 150 = 2 OCC
217 SF / 300 = 1 OCC
197 SF / 200 = 1 OCC
M OCCUPANCYWINERY - OFF-SITE TASTING ROOM FOR WINE SALES - MERCANTILE USE: AREA: OCC. LOAD: OCCUPANCY:TASTING AREA 365 SF 60 / NET 6WINE DISPLAY 280 SF 60 / NET 5PATIO TASTING 478 SF 60 / NET 8BAR/KITCHEN 197 SF 200 / GROSS 1OFFICE/STORAGE 232 SF 150 / NET 2STORAGE 217 SF 300 / GROSS 1STORAGE - CELLAR 755 SF 300 /GROSS 3TOTAL OCCUPANCY: 26 OCCUPANTS 478 SF / 60 = 8 OCC
365 SF / 60 = 6 OCC
HALL

UTILITY

TOILETALL-GENDERADA
TOILET

ALL-GENDERADA

LIFT(E) NOT USDED
HALL

FRONT ENTRY

BACK ENTRY
GATE
UP
EXISTING & PROPOSED FLOOR PLAN - NO CHANGE TO PROPOSED FLOOR PLAN;EXISTING AND PROPOSED USE - STORAGE

STORAGE CELLAR (BASEMENT)
755 SF / 300 = 3 OCC.

THIS DOCUMENT AND THE IDEAS AND DESIGNS INCORPORATED HEREIN, AS INSTRUMENTS OF PROFESSIONAL SERVICE, ARE THE PROPERTY OF ANDERSON KULWIEC APPLEBY ARCHITECTS AND ARE NOT TO BE USED, IN WHOLE OR IN PART, FOR ANY PROJECT WITHOUT THE WRITTEN AUTHORIZATION OF ANDERSON KULWIEC APPLEBY ARCHITECTS. 1 9-12-2023
A
1 BC
2 3
DE
1 2 3
4 5 6
ABC
4 5 6
DE
Consultants:

Owner:

Date

REVISIONS
Description
2023-109926 East Main StreetSanta Paula, California 93060Santa Paula, California 93060MICHAEL BINSLEY Project:SANTA PAULA CELLARS

CONSTRUCTION DOCUMENTS

SUBMIT FOR MINOR MOD
Z:\AcadProjects\AK\2023\2023-109 - Santa Paula Cellars\03 REVIT\2023-109 - Santa Paula Cellars - CD-rev.rvt 1/16/2024 1:25:43 PM SD-202FLOOR PLANS
Checker
Author
SD-202 1/4" = 1'-0"
A1 FLOOR PLAN 0 2' 4' 8'
SCALE: 1/4" = 1'-0"
SD-202 1/4" = 1'-0"
C1 BASEMENT FLOOR PLAN
165
To: Honorable Mayor and Members of the City Council
From: Clete Saunier, Public Works Director
Subject: RESOLUTION NO. 7498 ACCEPTING PUBLIC WATER AND RECYCLED

WATER IMPROVEMENTS, ACCEPTING WARRANTY SECURITIES AND

EXONERATING PERFORMANCE SECURITIES
Date: January 24, 2024
Agenda Item: 9.G

CITY OF SANTA PAULA

MEMORANDUM
RECOMMENDATION:

Staff recommends that the City Council:

1. Adopt Resolution No 7498 accepting the East Area 1 Tracts 5854, 5986-5992 public water and recycled water improvements, accepting warranty securities and exonerating faithful performance securities.

BACKGROUND:

Sections 3.3.1 and 3.3.2 of the East Area 1 Specific Plan require Limoneira Lewis Community Builders, LLC (LLCB) to construct domestic and recycled water distribution systems to serve the East Area 1 development area. The water improvements for Tracts 5854 and Tracts 5986- 5992 (“Water and Recycled Water Improvements”) have been completed to the satisfaction of the Public Works Director and are currently operating to serve these tracts.

The below plan sets were used to construct the Water and Recycled Water Improvements to be accepted by the City:

Tract 5854 Improvement Plans, City Drawing No. 40.35.04 (As-Built 4/3/23) Tracts 5985-5992 Improvement Plans, City Drawing No. 40.35.07 (As-Built 8/29/22) The domestic and recycled water system is shown in Resolution 7498, Exhibit A. The domestic distribution system is comprised of a series of water mains ranging in size from 6” to 20” in diameter. A series of domestic water lines run from a point of connection (POC) near the intersection of Hallock Drive and Packing House Lane to their termination point just north of the intersection of Harvest Loop and Santa Paula Street near the Harvest at Limoneira Community Center. The recycled water distribution system is comprised of a single 12” main to meet the higher irrigation flow demands of the large landscape and park areas. The recycled water line runs from a point of connection near the intersection of Hallock Drive and Packing House Lane to its termination point just north of the intersection of Harvest Loop and Santa Paula Street near the Harvest at Limoneira Community Center. 166
ANALYSIS:

The Water and Recycled Water Improvements are complete and fully operational. Certified asbuilt improvement plans have been signed and stamped and are on file with the City. LLCB has provided current valve turning and hydrant flow testing data which has been reviewed and approved by the City.

Upon inspection conducted by the City’s land development staff and water division, the Water and Recycled Water Improvements are ready for formal acceptance by the City. Staff recommends adoption of a resolution formally accepting the improvements, accepting warranty securities, and exonerating the performance bonds for Tracts 5986-5992. There is no separate performance bond for only water and recycled water for Tract 5854, and the developer has opted not to request further reduction to this performance bond. It is noted that Tracts 5986, 5987, 5988 and 5992 were reassigned to the home builders (Lennar and KB Home) by LLCB in October 2019, such that the performance bonds for these tracts are held by the respective home builders. Those portions of the following remaining performance bond amounts relating to the Water and Recycled Water Improvements will be released with the receipt of warranty securities as required by the respective subdivision improvement agreements (i.e. 10% of the original bond amount):

TRACT PRINCIPAL BOND
NUMBER

REMAINING
AMOUNT
5986 Lennar Homes of California, Inc. 800051631 $134,875.00 5987
KB Home Greater Los Angeles
Inc.
024241247 $38,357.00
5988 Lennar Homes of California, Inc. 800051629 $105,313.00 5989
Limoneira Lewis Community
Builders, LLC
36K013194 $444,657.41
5990
Limoneira Lewis Community
Builders, LLC
36K013196 $62,877.31
5991
Limoneira Lewis Community
Builders, LLC
024247179 $377,694.53
5992 Lennar Homes of California, Inc. 800051630 $43,851.00 In addition, the resolution authorizes the Public Works Director to release the warranty securities upon expiration of the required warranty period, which is one year after acceptance.

STRATEGIC PLAN:

The Project supports the currently adopted Strategic Plan in achieving the following goals:

Infrastructure, Transportation & Mobility
Goal: Maintain and develop the City’s infrastructure to be safe, sustainable, innovative and cost-efficient.

Acceptance of these newly constructed improvements will allow the City to maintain and operate a safe and sustainable water system for the Harvest at Limoneira community.

FISCAL IMPACTS:
167
The Water and Recycled Water Improvements were paid for by LLCB and the costs were reimbursed through East Area 1 CFD No. 1. The City of Santa Paula Water Division will take over operation and maintenance of the improvements as a part of the City’s water enterprise.

Acceptance of the Water and Recycled Water Improvements has no further fiscal impacts to the City outside of routine operations and maintenance.

The Tract 5854 water system is currently valued at $3,006,404.

The Tracts 5986-5992 water system is currently valued at $1,978,600.

OPTIONS:

In addition to the recommended action, the Council has the following available alternative option:

1. Do not accept the East Area 1 Tracts 5854 and Tracts 5986-5992 public water and recycled water improvements and provide direction to staff to address specific items of concern prior to acceptance.

ATTACHMENTS:

Attachment_A_-RESOLUTION_7498 (Acceptance of Water Facilities Etc) (FINAL).pdf 168

ATTACHMENT A
Resolution No. 7498: Accepting the Public Improvements
and Warranty Securities and Exonerating Performance
Securities for Tract 5854 and Tracts 5986-5992
169
1 RESOLUTION NO. 7498

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA PAULA

ACCEPTING THE PUBLIC IMPROVEMENTS AND WARRANTY SECURITIES AND EXONERATING PERFORMANCE SECURITIES FOR TRACTS 5854 AND
TRACTS 5986-5992

WATER AND RECYCLED WATER IMPROVEMENTS
The City Council of the City of Santa Paula hereby resolves:

SECTION 1: The City Council finds and declares that:

A. Limoneira Lewis Community Builders, LLC, (LLCB) entered into a Subdivision Improvement Agreement with the City of Santa Paula for Tract 5854 on or around December 11, 2017, which was recorded in the Official Records of the County of Ventura (“Official Records”) on January 10, 2019 (No. 20180110- 000304-0).

B. LLCB entered into Subdivision Improvement Agreements with the City of Santa Paula for Tracts 5986-5992 on or around November 7, 2018, each of which were recorded in the Official Records on or around December 18, 2018.

C. The above eight (8) Subdivision Improvement Agreements (hereafter, “EA1 Subdivision Improvement Agreements”) required LLCB to design and construct public improvements in accordance with the Santa Paula Municipal Code and the conditions of approval for the corresponding tentative map and to provide financial securities ensuring faithful performance, payment, monumentation, and warranty obligations of the agreement.

D. In 2019, the Subdivision Improvement Agreements for Tracts 5986, 5988, and 5992 were assigned to builder Lennar Homes of California, Inc. and Tract 5987 to builder KB Home Greater Los Angeles Inc.

E. Among the improvements required by the EA1 Subdivision Improvement Agreements are the public Water and Recycled Water Improvements, as described therein. A depiction of the Water and Recycled Water Improvements system is attached to this Resolution as Exhibit A.

F. The Water and Recycled Water Improvements have been completed and additional warranty securities posted for the maintenance period as required by the EA1 Subdivision Improvement Agreements.

G. The Water and Recycled Water Improvements have been inspected by the Department of Public Works, which determined that the improvements have been satisfactorily completed in accordance with City-approved improvement plans.

The final as-built plans have been reviewed by Public Works, and the Public 170
2 Works Director recommends approval of the final plans and acceptance of the Water and Recycled Water Improvements.

SECTION 2: The recitals set forth above are true and correct.

SECTION 3: Acceptance of Public Improvements. The final project plans for the Water and Recycled Water Improvements for Tracts 5854, 5986, 5987, 5988, 5989, 5990, 5991 and 5992 are approved. The Water and Recycled Water Improvements and the warranty securities for these improvements are accepted and will be included in the appropriate city systems.

SECTION 4: Bond Exoneration. The following faithful performance bonds are exonerated:

TRACT PRINCIPAL BOND
NUMBER

REMAINING
AMOUNT
5854 Limoneira Lewis Community
Builders, LLC
379307S $5,552,224.00
5986 Lennar Homes of California, Inc. 800051631 $134,875.00 5987 KB Home of Greater Los Angeles
Inc.
024241247 $38,357.00
5988 Lennar Homes of California, Inc. 800051629 $105,313.00 5989 Limoneira Lewis Community
Builders, LLC
36K013194 $444,657.41
5990 Limoneira Lewis Community
Builders, LLC
36K013196 $62,877.31
5991 Limoneira Lewis Community
Builders, LLC
024247179 $377,694.53
5992 Lennar Homes of California, Inc. 800051630 $43,851.00 SECTION 5: Additional warranty securities have been posted for the maintenance period as required by the EA1 Subdivision Improvement Agreements and the Public Works Department is therefore authorized to return the securities listed in Section 4, above.

SECTION 6: The Public Works Director is hereby authorized to exonerate the warranty securities at the end of the required warranty period, which is one year after acceptance of the improvements.
//
//
//
//
171
3 PASSED AND ADOPTED by the City Council of the City of Santa Paula this 24th day of January, 2024.
_______________________________
Leslie Cornejo, Mayor
ATTEST:
_________________________
Julie Latshaw, CMC, City Clerk
APPROVED AS TO FORM:
________________________
Monica Castillo, City Attorney
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4 EXHIBIT A
Water System Depiction
[attached behind]
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174
To: Honorable Mayor and Members of the City Council
From: Christy Ramirez, Finance Director
Subject: ANNUAL AUDIT - FY 21/22
Date: January 24, 2024
Agenda Item: 9.H

CITY OF SANTA PAULA

MEMORANDUM
RECOMMENDATION:

Staff recommends the City Council receive and place on file the Annual Audited Financial Statements for the Fiscal Year ended June 30, 2022.

Presented by: Christy Ramirez, Finance Director
BACKGROUND:

The City engaged Rogers, Anderson, Mallody, and Scott (RAMS) to perform an annual financial audit of the City and the eligible federal grant programs for the period ended June 30, 2021. On January 24, 2023, the audit firm will issue the final report of the City’s financial records. At the front of these reports is an Independent Auditors’ Report that shares with the reader their opinion that “the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the businesstype activities, each major fund, and the aggregate remaining fund information of the City of Santa Paula as of June 30, 2022….” This means that the City has properly accounted for City finances without any major misstatements.

ANALYSIS:

For the purposes of this audit, the General Fund is made up of 8 funds (General, General Reserve, General Fund FEMA Program, General Fund-Measure T, General Recreation, Refuse Reserve, Equipment Maintenance, and Miscellaneous Deposits). Of the $11,221,895 General Funds balance, $1,213,434 is nonspendable, restricted and/or committed with the unassigned fund balance being $10,008,320.The General Fund Operating Reserve consists of two funds (General Reserve and General Reserve - Measure T) totaling $3,859,598, which have been set aside to be held “in the event of an emergency, disaster, or other extraordinary circumstance.” These reserves make up a significant portion of the unassigned fund balance noted above. The draft audit has been included as an attachment to this report, with a final version to be presented at the Council meeting.

STRATEGIC PLAN:

FISCAL IMPACTS:
175
None.

OPTIONS:

The Council may decide to defer the matter back to staff with further direction.

ATTACHMENTS:

Santa Paula - 2023 FS DRAFT-V1.pdf
176
City of Santa Paula,
California

ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2022

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City of Santa Paula
Annual Financial Report
For the Year Ended June 30, 2022

TABLE OF CONTENTS
Page
Independent Auditor’s Report .............................................................................................. 1 Management’s Discussion and Analysis ............................................................................. 4 Basic Financial Statements:

Government-wide Financial Statements:

Statement of Net Position ........................................................................................... 13 Statement of Activities ................................................................................................. 14 Fund Financial Statements:

Balance Sheet - Governmental Funds ........................................................................ 15 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position ........................................................................................................... 17 Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds ............................................................................................. 18 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities ................. 20 Statement of Net Position - Proprietary Funds ............................................................ 21 Statement of Revenues, Expenses and Changes in Net Position – Proprietary Funds .................................................................................................. 22 Statement of Cash Flows - Proprietary Funds ............................................................ 23 Statement of Fiduciary Net Position ............................................................................ 24 Statement of Changes in Fiduciary Net Position ......................................................... 25 Notes to Financial Statements .......................................................................................... 26 Required Supplementary Information
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - General Fund .............................................................................................................. 66 Federal Grants – Major Special Revenue Fund .......................................................... 67 State Grants – Major Special Revenue Fund ............................................................... 68 Schedule of Changes in the City’s Total OPEB Liability ................................................... 69 Schedule of the City’s Proportionate Share of the Net Pension Liability ........................... 70 Schedule of Plan Contributions ......................................................................................... 71 Notes to Required Supplementary Information ................................................................. 72

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City of Santa Paula
Annual Financial Report
For the Year Ended June 30, 2022
TABLE OF CONTENTS (Continued)
Page
Supplementary Information
Combining and Individual Fund Statements and Schedules:

Combining Balance Sheet - Nonmajor Governmental Funds ..................................... 73 Combining Balance Sheet - Nonmajor Special Revenue Funds ................................. 74 Combining Balance Sheet - Nonmajor Capital Projects Funds ................................... 77 Combining Balance Sheet - Nonmajor Permanent Funds .......................................... 79 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Governmental Funds ............................................................................ 80 Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Special Revenue Funds ........................................................................ 81 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Capital Project Funds ........................................................................... 84 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Permanent Fund ................................................................................... 86

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Independent Auditor’s Report
The Honorable City Council
City of Santa Paula, California
Report on the Audit of the Financial Statements
Opinions
We have audited the financial statements of the governmental activities, business-type activities, each major fund, and the aggregate remaining fund information of the City of Santa Paula (the City), as of and for the year ended June 30, 2022, and the related notes to the financial statements which collectively comprise the City’s basic financial statements as listed in the table of contents.

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

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

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

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.

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

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

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

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Required Supplementary Information
Accounting principles generally accepted in the United States of America require that required supplementary information, such as management’s discussion and analysis and budgetary comparison information be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

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

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

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated June 12, 2022 on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.

San Bernardino, California
January XX, 2024

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City of Santa Paula
Management’s Discussion and Analysis
For the Year Ended June 30, 2022
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As management of the City of Santa Paula (the City), we offer readers of the City’s financial statements this narrative overview and analysis of the financial activities of the City for the fiscal year ended June 30, 2022.

FINANCIAL HIGHLIGHTS
 The assets and deferred outflows of resources of the City exceeded its liabilities and deferred inflows of resources at the close of fiscal year 2021-22 by $80,863,690 (net position).
 The City’s total net position increased by $10,876,011 from the 2020-21 fiscal year mainly attributable to regular current operating activities along with an decrease in construction in progress related expenses.
 As of the close of fiscal year 2021-22, the City’s governmental activities reported combined ending Net Position of $28,387,677 an increase of $5,300,928 from the ending balance of 2021, which was $23,086,749. The net position of $176,714 is expendable funds and $823,191 is nonexpendable funds (endowments/trusts), $16,975,837 restricted net position (grant funds and bond proceeds), and $(18,394,750) negative is (unrestricted net position) available for spending with some government discretion.  At the end of fiscal year 2021-22, unrestricted fund balance (the total of the committed and unassigned components of fund balance) for the General Fund is $11,217,461 or 77.6% of total General Fund expenditures. This is an increase of $3,041,893 from fiscal year 2020-21 largely due to reclassifications of committed funds.

OVERVIEW OF THE FINANCIAL STATEMENTS
This discussion and analysis is intended to serve as an introduction to the City’s basic financial statements. The City’s basic financial statements comprise three components: 1) governmentwide financial statements, 2) fund financial statements, and 3) notes to the financial statements.

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

Government-Wide Financial Statements. The government-wide financial statements are designed to provide readers with a broad overview of the City’s finances, in a manner similar to a private-sector business.

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

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City of Santa Paula
Management’s Discussion and Analysis
For the Year Ended June 30, 2022
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The statement of activities presents information showing how the government's net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave).

Both of the government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City include general government, public safety, streets, economic development, and culture and recreation.

The business-type activities of the City include Water and Sewer enterprises.

The government-wide financial statements include not only the City itself (known as the primary government), but also a legally separate Financing Authority for which the City of Santa Paula is financially accountable. Financial information for these component units is included in the financial information presented for the primary government itself. The Water and Sewer enterprises, function for all practical purposes as departments of the City, and therefore have been included as an integral part of the primary government. Also, as of February 1, 2012 the Santa Paula Redevelopment Agency became the Designated Local Authority for the former Santa Paula Redevelopment Agency, a Successor Agency Private purpose trust fund with the City reporting as fiduciary funds.

The government-wide financial statements can be found on pages 13-14 of this report.

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

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

However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financing requirements.

Since the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the governmental-wide financial statements.

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

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City of Santa Paula
Management’s Discussion and Analysis
For the Year Ended June 30, 2022
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The City maintains twenty-three individual active governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in the fund balances for the General Fund (which is made up of nine separate internal funds), the Federal Grants Fund and the State Grants Fund which are considered to be a major funds of the City. Data from the twenty active governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these nonmajor governmental funds is provided in the form of combining statements elsewhere in this report. The City adopts an annual appropriated budget for its General Fund, and the major special revenue funds. Budgetary comparison statements have been provided for the General Fund and the major special revenue funds to demonstrate compliance with this budget.

The basic governmental fund financial statements can be found on pages 15-20 of this report.

Proprietary funds. The City maintains three different types of proprietary funds: Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City uses enterprise funds to account for its Water and Sewer operations. These funds are reported separately as Proprietary Funds.

Internal Service funds are accounting devices used to accumulate and allocate costs internally among the City’s various functions. Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the Water and Sewer operations, which are considered to be major funds of the City. The internal service fund for Equipment Maintenance is combined into the General Fund classification, aggregated presentation in the governmental fund financial statements.

The basic proprietary fund financial statements can be found on pages 21-23 of this report.

Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statement because the resources of those funds are not available to support the City’s own programs. The accounting used for fiduciary funds is much like that used for proprietary funds.

The City maintains two different types of fiduciary funds. The Custodial Funds account for funds held in trust for specific purposes and the Private Purpose Trust Fund accounts for the Successor agency for the Santa Paula Redevelopment agency.

The basic Fiduciary fund financial statements can be found on pages 24-25 of this report.

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

The notes to the financial statements can be found on pages 26-65 of this report.

Other information. In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the City’s General Fund, and Major Special Revenue Funds’ Actual to Budget comparisons. Required supplementary information can be found on pages 66-72 of this report.

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City of Santa Paula
Management’s Discussion and Analysis
For the Year Ended June 30, 2022
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The combining statements referred to earlier in connection with non-major governmental funds are presented immediately following the required supplementary information on pensions.

Combining and individual fund statements and schedules can be found on pages 75-88 of this report.

Government-wide Financial Analysis
As noted earlier, net position may serve over time as a useful indicator of a government’s financial position. In the case of the City, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $80,863,690 at the close of fiscal year 2021-22.

June 30, 2022 June 30, 2021
Governmental Business-Type Governmental Business-Type
Activities Activities Total Activities Activities Total Assets
Current and other assets $ 32,713,671 $ 41,303,929 $ 74,017,600 $ 22,788,183 $ 36,417,272 $ 59,205,455 Capital assets (net of depreciating) 29,806,590 126,915,376 156,721,966 30,028,225 127,995,249 158,023,474 Total Assets 62,520,261 168,219,305 230,739,566 52,816,408 164,412,521 217,228,929 Deferred Outflows of Resources
Deferred charges on refundings - 10,809,222 10,809,222 - 11,133,499 11,133,499 Pension related 6,025,811 575,605 6,601,416 5,421,700 713,545 6,135,245 OPEB related 503,449 149,532 652,981 584,015 181,405 765,420 Total Deferred Outflows of Resources 6,529,260 11,534,359 18,063,619 6,005,715 12,028,449 18,034,164 Liabilities
Long-term liabilities outstanding 20,850,437 121,049,710 141,900,147 29,190,746 125,638,207 154,828,953 Other liabilities 4,714,080 3,804,566 8,518,646 4,055,689 3,437,091 7,492,780 Total Liabilities 25,564,517 124,854,276 150,418,793 33,246,435 129,075,298 162,321,733 Deferred Inflows of Resources
Pension actuarial amounts 13,557,631 1,966,060 15,523,691 1,286,211 91,155 1,377,366 OPEB actuarial amounts 1,539,696 457,315 1,997,011 1,202,728 373,587 1,576,315 Total Deferred Inflows of Resources 15,097,327 2,423,375 17,520,702 2,488,939 464,742 2,953,681 Net investment in capital assets 29,806,590 25,541,033 55,347,623 30,028,225 23,765,203 53,793,428 Restricted 16,975,837 6,181,101 23,156,938 10,830,363 6,181,101 17,011,464 Unrestricted (18,394,750) 20,753,879 2,359,129 (17,771,839) 16,954,626 (817,213) Total Net Position $ 28,387,677 $ 52,476,013 $ 80,863,690 $ 23,086,749 $ 46,900,930 $ 69,987,679 Government-Wide Financial Statements
Table 1: Summary of Net Position
A large portion (almost all) of the City’s net position include $55,347,623 (68.4 percent) as its net investment in capital assets (e.g., land, buildings, machinery, and equipment), less any related debt used to acquire those assets that is still outstanding. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities.

An additional portion of the City’s net position (28.6%) represents resources that are subject to external restrictions on how they may be used.

At the end of the current fiscal year, the City is able to report a positive balance in net position for Investments in Capital Assets and restricted purposes. Separately, the City’s governmental unrestricted net position shows a negative balance of $2,359,129, which is an increase in net position of $3,176,342 from the previous year’s figure of $(817,213).

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City of Santa Paula
Management’s Discussion and Analysis
For the Year Ended June 30, 2022
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The business-type activities unrestricted net position show a positive balance of $20,753,879 a increase of $3,799,253 over the fiscal year 2021-22’s balance of $16,954,626. These unrestricted funds can only be used for Water and Sewer activities. The Water fund has $6,081,101 restricted under Cash with Fiscal Agent while the Sewer Fund has $100,000 for rate stabilization. These funds are related to the Bond Issues.

June 30, 2022 June 30, 2021
Governmental Business-Type Governmental Business-Type
Activities Activities Total Activities Activities Total Revenues
Charges for services $ 3,667,349 $ 24,554,604 $ 28,221,953 $ 3,768,492 $ 22,866,148 $ 26,634,640 Operating grants 7,990,377 - 7,990,377 4,584,707 - 4,584,707 Capital grants 3,970,014 - 3,970,014 3,096,566 - 3,096,566 General revenues:

Property taxes 4,694,785 - 4,694,785 4,331,524 - 4,331,524 Sales taxes 7,893,048 - 7,893,048 6,912,274 - 6,912,274 Other taxes 1,035,231 - 1,035,231 896,317 - 896,317
Investments (96,154) (116,318) (212,472) 33,252 15,317 48,569 Other revenues 364,961 209,000 573,961 198,223 109,000 307,223 Transfers - - - (369,337) 369,337 -
Total Revenues 29,519,611 24,647,286 54,166,897 23,452,018 23,359,802 46,811,820 Expenses
General administration 1,942,125 - 1,942,125 1,261,645 - 1,261,645 Building and safety 1,015,760 - 1,015,760 711,255 - 711,255 Community services 3,706,990 - 3,706,990 2,848,437 - 2,848,437 Financial services 1,027,458 - 1,027,458 686,556 - 686,556 Fire 1,468,684 - 1,468,684 35,568 - 35,568
Planning 1,812,509 - 1,812,509 783,581 - 783,581
Police 9,447,479 - 9,447,479 9,131,313 - 9,131,313
Public works 3,797,678 - 3,797,678 3,101,168 - 3,101,168 Water - 9,050,652 9,050,652 - 8,091,572 8,091,572
Sewer - 10,021,551 10,021,551 - 9,365,459 9,365,459
Total Expenses 24,218,683 19,072,203 43,290,886 18,559,523 17,457,031 36,016,554 Change in Net Position 5,300,928 5,575,083 10,876,011 4,892,495 5,902,771 10,795,266 Beginning Net Position 23,086,749 46,900,930 69,987,679 12,205,822 37,044,092 49,249,914 Ending Net Position $ 28,387,677 $ 52,476,013 $ 80,863,690 $ 17,098,317 $ 42,946,863 $ 60,045,180 Government-Wide Financial Statements
Table 2: Summary of Changes in Net Position
Governmental activities. Governmental activities increased the City’s net position by $5,300,928 for the current year. The increases in net position are explained in further detail on page 14 of the report. Expenses for governmental activities increased from $18,559,523 in 2021 to $24,218,683 in 2022, a increase of $5,659,160. This increase is largely due increase in public works related construction in progress related expenditures.

Business-type activities. Business-type activities increased the City’s net position by $5,575,083.

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City of Santa Paula
Management’s Discussion and Analysis
For the Year Ended June 30, 2022
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Financial Analysis of the Government’s Funds
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.

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

As of the end of the current fiscal year, the City’s governmental funds reported combined total ending fund balances of $27,923,402.

The General Fund is the chief operating fund of the City. At June 30, 2022, the unassigned fund balance for the General Fund was $10,008,320, while total fund balance reached $11,221,895.

As a measure of the General Fund’s liquidity, it may be useful to compare both unassigned fund balance and total fund balance to total fund expenditures. Unassigned fund balance represents

67.4 percent of the total General Fund expenditures, while total fund balance represents 77.5 percent of that same amount. The City’s unassigned General Fund balance, increased by $3,041,983 during the current fiscal year.

Proprietary funds. The City’s proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail.

The net position of the Water and Sewer enterprises at the end of the year amounted to $52,476,013 an increase of $5,575,083 from the fiscal year ended 2020-21. The net position for the proprietary funds - water increased $3,294,587 and sewer increased $2,280,496. Other factors concerning the finances of these funds are addressed in the discussion of the City’s business-type activities.

Water Sewer Total
Operating revenues $ 11,984,594 $ 12,570,010 $ 24,554,604 Operating expenses 7,818,699 7,175,082 14,993,781
Operating income (loss) 4,165,895 5,394,928 9,560,823
Total Non-Operating Revenues
(Expenses) (1,088,748) (2,896,992) (3,985,740)
Transfers in 217,440 - 217,440
Transfers out - (217,440) (217,440)
Change in Net Position 3,294,587 2,280,496 5,575,083
Total Net Position, Beginning 23,508,352 23,392,578 46,900,930 Total Net Position, Ending $ 26,802,939 $ 25,673,074 $ 52,476,013 Table 3: Proprietary Funds
Statement of Revenues, Expenses and Changes in Net Position

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City of Santa Paula
Management’s Discussion and Analysis
For the Year Ended June 30, 2022
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General Fund Budgetary Highlights
The actual General Fund revenue ended $73,104 under the final budgeted amount. There were minor budget adjustments during the fiscal year to the final revenue budget. Revenues overall were approximately .5% below the budgeted estimates. The General Fund revenue final budget vs. actual breakdown is as follows:
• Taxes $46,355 over budget estimates primarily due to reimbursement of staff time. • Licenses and Permits are $4,955 under budget estimates due to slightly decreased building activity compared to projected amounts.
• Intergovernmental $137,280 under budget estimates primarily due to a shortfall of reimbursements for school resource officer billings.
• Fines and Forfeitures $1,518 under budget estimates due to revenue from vehicle code fines slightly not meeting expectations.
• Investment Earnings shortfall of $61,099 due to low rate of returns on LAIF investments.

Differences between the final budget and the actual expenditures for the operating departments varied considerably.
• General Governmental $200,898 under budget estimates due to salary savings from legal costs.
• Building & Safety $58,726 under budget estimates due to staffing shortages. • Community Services $885,822 under budget estimates about half of which was due to part time staffing costs not being realized until after the fiscal year end. • Financial Services $19,386 under budget estimates due to general expense savings. • Planning $156,999 under budget estimates due to the pass through of development activity in the Deposits fund not being recognized as expenses in the general fund. • Police $1,052,989 under budget estimates due to salary savings from vacant positions. • Public Works $4,486,491 under budget estimates due to capital improvement projects not being fully completed, most notably the Police Department remodel which had over a milliondollar budget with zero expenses.

Overall, the General Fund expenditures came in under budget by $6,861,311 or 31.6% of budgeted estimates.

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City of Santa Paula
Management’s Discussion and Analysis
For the Year Ended June 30, 2022
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General Fund Budgetary Highlights (continued)
Revenues
Taxes 46,355 $
Licenses and permits (4,955)
Intergovernmental (137,280)
Charges for services 130,036
Fines and forfeitures (1,518)
Investment earnings (61,099)
Other revenue (44,643)
Total Revenue Over/(Under) Budget (73,104) $
Expenditures
General government 200,898 $
Community services 885,822
Financial services 19,386
Public works 4,486,491
Total Expenditures (Over)/Under Budget 5,592,597 $
General Fund Budgetary Highlights
Table 4
Capital Asset and Debt Administration
Capital assets. The City’s investment in capital assets for its governmental and business type activities as of June 30, 2022, amounts to $156,721,966 (net of accumulated depreciation). This investment in capital assets includes land, buildings and system, improvements other than buildings, machinery and equipment, as well as construction in progress.

The value of the City’s assets has decreased by $1,301,508 during this reporting period.

Additional information on the City’s capital assets can be found in Note 5 on pages 40-41 in this report.
(Net of Depreciation)
Governmental Business-Type
Activities Activities Total
Land 489,183 $ 7,104,082 $ 7,593,265 $
Construction in progress 3,384,198 7,799,091 11,183,289 Buildings and system 1,661,945 68,858,487 70,520,432
Machinery and equipment 1,283,272 28,533,325 29,816,597 Water rights - 13,834,827 13,834,827
Improvements other than buildings 22,987,992 785,564 23,773,556 Total Capital Assets $ 29,806,590 $ 126,915,376 $ 156,721,966 Table 5
Capital Assets

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190
City of Santa Paula
Management’s Discussion and Analysis
For the Year Ended June 30, 2022
-12-
Capital Asset and Debt Administration (continued)
Long-term debt. At the end of the current fiscal year, the City had total debt outstanding of $118,264,666 (excluding pension/OPEB liabilities, compensated absences and claims liability).

This is a decrease of $3,179,980 from the prior year’s level of $121,444,646. Governmental activities has no outstanding debt. Business-Type activities decreased by $3,179,980, largely due to refunding of debt and principal payments for the Enterprise Revenue bonds.

Additional information on the City’s long-term debt can be found in Note 7 on pages 43-48 of this report.

Business-Type
Activities Total
Lease Revenue Bonds:

Water 2019 33,415,000 $ 33,415,000 $
Add: Premium 5,965,684 5,965,684
Wastewater 2015A 9,295,000 9,295,000
Wastewater 2020A 3,765,000 3,765,000
Add: Premium 727,482 727,482
Wastewater 2020B 64,600,000 64,600,000
Notes payable 496,500 496,500
Total 118,264,666 $ 118,264,666 $
Table 6
Outstanding Debt
Next Year’s Budgets and Rates
In 2019 the Council adopted a five-year water and sewer rate increase. The first increase went into effect on January 1, 2020. Additional increases will occur at the start of every fiscal year through July 1, 2024.

Requests for Information
This financial report is designed to provide a general overview of the City’s finances for all those with an interest in the government’s finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the City, Finance Director, P. O. Box 569, Santa Paula, CA 93061.

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191

BASIC FINANCIAL STATEMENTS

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City of Santa Paula
Statement of Net Position
June 30, 2022
The accompanying notes are an integral part of these financial statements. -13-
Primary Government
Governmental Business-Type
Activities Activities Total
ASSETS
Cash and investments 30,176,821 $ 33,437,619 $ 63,614,440 $ Cash - restricted 4 3,039,397 3,039,401
Receivables:

Accounts, net of allowance 2,202,916 4,414,239 6,617,155 Loans, net 333,930 - 333,930
Prepaids - 412,674 412,674
Capital assets, not being depreciated 3,873,381 28,738,000 32,611,381 Capital assets, net of accumulated depreciation 25,933,209 98,177,376 124,110,585 Total Assets 62,520,261 168,219,305 230,739,566

DEFERRED OUTFLOWS OF RESOURCES
Deferred charges on refundings - 10,809,222 10,809,222
Pension related 6,025,811 575,605 6,601,416
OPEB related 503,449 149,532 652,981
Total Deferred Outflows of Resources 6,529,260 11,534,359 18,063,619

LIABILITIES
Accounts payable and accrued liabilities 2,793,007 2,085,747 4,878,754 Accrued interest payable - 1,718,819 1,718,819
Deposits 1,921,073 - 1,921,073
Noncurrent Liabilities:

Due within one year 316,548 3,013,076 3,329,624
Due more than one year 1,242,468 115,278,866 116,521,334 Net pension liability 17,163,237 2,125,662 19,288,899
Total OPEB liability 2,128,184 632,106 2,760,290
Total Liabilities 25,564,517 124,854,276 150,418,793

DEFERRED INFLOWS OF RESOURCES
Pension related 13,557,631 1,966,060 15,523,691
OPEB related 1,539,696 457,315 1,997,011
Total Deferred Inflows of Resources 15,097,327 2,423,375 17,520,702

NET POSITION
Net investment in capital assets 29,806,590 25,541,033 55,347,623 Restricted for:

Capital projects 5,516,167 6,081,101 11,597,268
Development 4,980,349 - 4,980,349
Public safety 318,946 - 318,946
Rate stabilization - 100,000 100,000
Street projects 1,681,437 - 1,681,437
Transportation and other purposes 3,479,033 - 3,479,033 Trust and endowments:

Expendable 176,714 - 176,714
Nonexpendable 823,191 - 823,191
Unrestricted (18,394,750) 20,753,879 2,359,129
Total Net Position $ 28,387,677 $ 52,476,013 $ 80,863,690

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194
City of Santa Paula
Statement of Activities
For the Year Ended June 30, 2022
The accompanying notes are an integral part of these financial statements. -14-
Net (Expense) Revenue and
Program Revenues Changes in Net Position
Charges Operating Capital
for Grants and Grants and Governmental Business-type
Functions/Programs Expenses Services Contributions Contributions Activities Activities Total Governmental Activities:

General government 1,942,125 $ 401,025 $ 5,560,367 $ 11,522 $ 4,030,789 $ - $ 4,030,789 $ Building and safety 1,015,760 2,213,612 - - 1,197,852 - 1,197,852 Community services 3,706,990 227,195 99,015 1,218,989 (2,161,791) - (2,161,791) Financial services 1,027,458 28,358 - - (999,100) - (999,100) Fire 1,468,684 - - (1,468,684) - - (1,468,684)
Planning 1,812,509 124,348 - (1,688,161) - - (1,688,161) Police 9,447,479 519,151 596,769 15,835 (8,315,724) - (8,315,724) Public works 3,797,678 153,660 1,734,226 2,723,668 813,876 - 813,876 Total Governmental Activities 24,218,683 3,667,349 7,990,377 3,970,014 (8,590,943) - (8,590,943) Business-type Activities:

Water 9,050,652 11,984,594 - - - 2,933,942 2,933,942
Sewer 10,021,551 12,570,010 - - - 2,548,459 2,548,459
Total Business-type Activities 19,072,203 24,554,604 - - - 5,482,401 5,482,401 Total Government $ 43,290,886 $ 7,990,377 28,221,953 $ $ 3,970,014 (8,590,943) 5,482,401 (3,108,542) General Revenues:

Property taxes 4,694,785 - 4,694,785
Sales taxes 7,893,048 - 7,893,048
Transient occupancy taxes 144,098 - 144,098
Franchise taxes 891,133 - 891,133
Business license taxes 161,422 - 161,422
Unrestricted investment earnings (96,154) (116,318) (212,472) Miscellaneous revenues 203,539 - 203,539
Gain on disposal - 209,000 209,000
Total General Revenues and Transfers 13,891,871 92,682 13,984,553 Change in Net Position 5,300,928 5,575,083 10,876,011
Net Position, Beginning 23,086,749 46,900,930 69,987,679 Net Position, Ending $ 28,387,677 $ 52,476,013 $ 80,863,690

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195
City of Santa Paula
Balance Sheet
Governmental Funds
June 30, 2022
The accompanying notes are an integral part of these financial statements. -15-
General Federal Grants State Grants
ASSETS
Cash and investments 12,604,051 $ 2,894,687 $ 2,203,610 $ Cash - restricted 4 - -
Receivables
Accounts 1,874,900 16,374 4,945
Loans receivable 4,430 112,936 216,564
Due from other funds 291,718 - -
Advances to other funds - - -
Total Assets 14,775,103 $ 3,023,997 $ 2,425,119 $

LIABILITIES
Accounts payable and accrued liabilities 1,632,135 $ 56,983 $ 907,851 $ Deposits 1,921,073 - -
Due to other funds - - -
Advances from other funds - - -
Total Liabilities 3,553,208 56,983 907,851

DEFERRED INFLOWS OF RESOURCES
Unavailable revenues - - 76,189
Total Deferred Inflows of Resources - - 76,189

FUND BALANCE (DEFICITS)
Nonspendable 4,430 112,936 216,564
Restricted 4 2,854,078 1,224,515
Committed 1,209,141 - -
Unassigned 10,008,320 - -
Total Fund Balances 11,221,895 2,967,014 1,441,079
Total Liabilities and Fund Balances 14,775,103 $ 3,023,997 $ 2,425,119 $

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196
-16-
Non-major Total
Governmental Governmental
Funds Funds
$ 12,474,473 $ 30,176,821
- 4
306,697 2,202,916
- 333,930
- 291,718
14,001 14,001
$ 12,795,171 $ 33,019,390
$ 196,038 $ 2,793,007
- 1,921,073
291,718 291,718
14,001 14,001
501,757 5,019,799
- 76,189
- 76,189
823,191 1,157,121
11,744,553 15,823,150
- 1,209,141
(274,330) 9,733,990
12,293,414 27,923,402
$ 12,795,171 $ 33,019,390

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197
City of Santa Paula
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position
June 30, 2022
The accompanying notes are an integral part of these financial statements. -17-
Fund balances of governmental funds $ 27,923,402
Amounts reported for governmental activities in the Statement of Net Position are different because:

Capital assets net of depreciation have not been included as financial resources in governmental fund activity. 29,806,590
Other long-term assets are not available to pay for current-period expenditures and, therefore, are deferred in the funds. 76,189
Amounts for deferred inflows and deferred outflows related to the City's Net Pension Liability and Total OPEB Liability are not reported in the funds.

Deferred outflows related to pensions 6,025,811 $
Deferred inflows related to pensions (13,557,631)
Deferred outflows related to OPEB 503,449
Deferred inflows related to OPEB (1,539,696) (8,568,067) Long-term liabilities are not due and payable in the current period and therefore are not reported in the funds.

Compensated absences (633,096)
Claims liabilities (925,920)
Net pension liability (17,163,237)
Total OPEB liability (2,128,184) (20,850,437)
Net position of governmental activities 28,387,677 $

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198
City of Santa Paula
Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds
For the Year Ended June 30, 2022
The accompanying notes are an integral part of these financial statements. -18-
General Federal Grants State Grants

REVENUES
Taxes 13,700,296 $ - $ - $
Licenses and permits 1,510,745 - -
Intergovernmental 734,908 3,692,937 1,874,946
Charges for services 1,723,937 2,269 -
Fines and forfeitures 112,382 - -
Investment earnings (49,099) (7,398) (7,570)
Other revenues 197,407 5,551 -
Total Revenues 17,930,576 3,693,359 1,867,376

EXPENDITURES
Current:

General government 1,282,788 80,635 -
Building and safety 674,513 5,878 -
Community services 1,947,666 208,755 -
Financial services 641,378 14,361 -
Planning 777,458 35,288 620,522
Fire - - 1,452,121
Police 8,181,055 316,120 66,530
Public works 1,338,240 160,115 300,298
Total Expenditures 14,843,098 821,152 2,439,471
Excess (Deficiency) of Revenues
over Expenditures 3,087,478 2,872,207 (572,095)

OTHER FINANCING SOURCES (USES)
Transfers in - - -
Transfers out (48,874) - -
Total Other Financing Sources (Uses) (48,874) - -
Net Change in Fund Balances 3,038,604 2,872,207 (572,095) Fund Balances, Beginning 8,183,291 94,807 2,013,174
Fund Balances, Ending $ 11,221,895 $ 2,967,014 $ 1,441,079

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199
-19-
Non-major Total
Governmental Governmental
Funds Funds
$ 15,724,286 2,023,990 $
1,510,745 -
8,525,522 2,222,731
3,461,835 1,735,629
112,382 -
(100,258) (36,191)
208,910 5,952
29,443,422 5,952,111
1,501,785 138,362
680,391 -
2,333,284 176,863
677,680 21,941
1,433,268 -
1,452,121 -
8,563,705 -
3,610,280 1,811,627
20,252,514 2,148,793
9,190,908 3,803,318
387,339 387,339
(338,465) (387,339)
48,874 -
3,852,192 9,190,908
8,441,222 18,732,494
$ 12,293,414 $ 27,923,402

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200
City of Santa Paula
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities For the Year Ended June 30, 2022
The accompanying notes are an integral part of these financial statements. -20-
Net change in fund balances-total governmental funds $ 9,190,908 Amounts reported for governmental activities in the Statement of Activities are different because:

Governmental funds report capital outlays as expenditures. However, in the Statement of Activities the cost of these assets is allocated over their estimated useful lives as depreciation expense. This is the amount by which capital outlay of $1,698,762 exceeded depreciation and loss on disposals of $1,920,397 and $0, respectively, in the current period. (221,635)
Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds. 76,189 Change in Net Pension Liability $ (3,843,809)
Change in Total OPEB Liability (151,641) (3,995,450)
Compensated absences reported in the statement of activities do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds. The following represents the net change in compensated absences in the current period. (38,380)
Change in net position of governmental activities $ 5,300,928

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201
City of Santa Paula
Statement of Net Position
Proprietary Funds
June 30, 2022
The accompanying notes are an integral part of these financial statements. -21-
Business-type Activities - Enterprise Funds
Utility Authority
Water Sewer Totals
ASSETS
Current assets:

Cash and investments 20,425,604 $ 13,012,015 $ 33,437,619 $ Receivables 2,201,599 2,212,640 4,414,239
Prepaids 89,972 322,702 412,674
Total Current Assets 22,717,175 15,547,357 38,264,532
Noncurrent assets:

Restricted cash:

Cash with fiscal agents 3,029,960 9,437 3,039,397
Capital Assets:

Land 2,356,451 4,747,631 7,104,082
Water rights 13,834,827 - 13,834,827
Buildings 12,251,164 74,097,756 86,348,920
Improvements 28,574,721 8,264,092 36,838,813
Machinery and equipment 2,600,766 245,643 2,846,409
Construction in progress 2,526,371 5,272,720 7,799,091
Less: Accumulated depreciation (15,391,945) (12,464,821) (27,856,766) Total Capital Assets (Net of
Accumulated Depreciation) 46,752,355 80,163,021 126,915,376 Total Noncurrent Assets 49,782,315 80,172,458 129,954,773 Total Assets 72,499,490 95,719,815 168,219,305

DEFERRED OUTFLOWS OF RESOURCES
Deferred charges on refundings - 10,809,222 10,809,222
Pension related 575,605 - 575,605
OPEB related 149,532 - 149,532
Total Deferred Outflows of Resources 725,137 10,809,222 11,534,359

LIABILITIES
Current liabilities:

Accounts payable 681,968 1,403,779 2,085,747
Interest payable 639,854 1,078,965 1,718,819
Compensated absences 41,538 - 41,538
Bonds payable - current 1,585,000 1,386,538 2,971,538
Total Current Liabilities 2,948,360 3,869,282 6,817,642 Noncurrent liabilities
Bonds payable 37,795,685 76,986,681 114,782,366
Notes payable 496,500 - 496,500
Net pension liability 2,125,662 - 2,125,662
Total OPEB liability 632,106 - 632,106
Total Noncurrent Liabilities 41,049,953 76,986,681 118,036,634 Total Liabilities 43,998,313 80,855,963 124,854,276

DEFERRED INFLOWS OF RESOURCES
Pension related 1,966,060 - 1,966,060
OPEB related 457,315 - 457,315
Total Deferred Inflows of Resources 2,423,375 - 2,423,375

NET POSITION
Net investment in capital assets 12,956,272 12,584,761 25,541,033 Restricted for:

Capital projects 6,081,101 - 6,081,101
Rate stabilization - 100,000 100,000
Unrestricted 7,765,566 12,988,313 20,753,879
Total Net Position $ 26,802,939 $ 25,673,074 $ 52,476,013

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202
City of Santa Paula
Statement of Revenues, Expenses, and Changes in Net Position Proprietary Funds
For the Year Ended June 30, 2022
The accompanying notes are an integral part of these financial statements. -22-
Business-type Activities - Enterprise Funds
Utility Authority
Water Sewer Totals

OPERATING REVENUES
Water sales 11,975,141 $ - $ 11,975,141 $
Sewer sales - 12,545,365 12,545,365
Other revenues 9,453 24,645 34,098
Total Operating Revenues 11,984,594 12,570,010 24,554,604

OPERATING EXPENSES
Cost of sales 3,698,144 3,372,611 7,070,755
Administration 3,035,088 2,653,594 5,688,682
Depreciation 1,085,467 1,148,877 2,234,344
Total Operating Expenses 7,818,699 7,175,082 14,993,781 Operating Income (Loss) 4,165,895 5,394,928 9,560,823

NONOPERATING REVENUES (EXPENSES)
Investment earnings (65,795) (50,523) (116,318)
Interest expense (1,231,953) (2,846,469) (4,078,422)
Gain/(Loss) on disposal of capital assets 209,000 - 209,000 Total Nonoperating Revenues (Expenses) (1,088,748) (2,896,992) (3,985,740) Income Before Transfers and Capital Contributions 3,077,147 2,497,936 5,575,083 Transfers in 217,440 - 217,440
Transfers out - (217,440) (217,440)
Total Transfers 217,440 (217,440) -
Change in Net Position 3,294,587 2,280,496 5,575,083
Total Net Position, Beginning 23,508,352 23,392,578 46,900,930 Total Net Position, Ending 26,802,939 $ 25,673,074 $ 52,476,013 $

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SUBJECT TO CHANGES
203
City of Santa Paula
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2022
The accompanying notes are an integral part of these financial statements. -23-
Utility Authority
Water Sewer Total

CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers and users 11,668,768 $ 12,134,183 $ 23,802,951 $ Payments to suppliers (4,453,824) (5,029,730) (9,483,554) Payments to employees for salaries and benefits (1,727,444) (402,151) (2,129,595) Net cash provided by (used for) operating activities 5,487,500 6,702,302 12,189,802

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Transfers in 217,440 - 217,440
Transfers out (217,440) - (217,440)
Net cash provided by (used for) noncapital financing activities 217,440 (217,440) -

CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition of capital assets (44,981) (1,109,490) (1,154,471) Proceeds from sale of property 209,000 - 209,000
Interest paid in capital debt (1,596,649) (2,950,094) (4,546,743) Principal paid on capital debt (1,525,000) (915,000) (2,440,000) Net cash provided by (used for) capital and related
financing activities (2,957,630) (4,974,584) (7,932,214)

CASH FLOWS FROM INVESTING ACTIVITIES
Investment earnings (65,795) (50,523) (116,318)
Net cash provided by (used for) investing activities (65,795) (50,523) (116,318) Net increase (decrease) in cash and cash equivalents 1,459,755 2,681,515 4,141,270 Cash and cash equivalents, beginning 20,774,049 11,561,697 32,335,746 Cash and cash equivalents, ending $ 13,021,452 23,455,564 $ 36,477,016 $

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

Operating income 4,165,895 $ 5,394,928 $ 9,560,823 $
Adjustments to reconcile operating income to net cash
provided by operating activities:

Depreciation expense 1,085,467 1,148,877 2,234,344
(Increase) decrease in receivables (315,826) (435,827) (751,653) (Increase) decrease in prepaids - 6,266 6,266
(Increase) decrease in deferred outflows - pensions 137,940 - 137,940 (Increase) decrease in deferred outflows - OPEB 31,873 - 31,873 Increase (decrease) in accounts payable (178,662) 588,058 409,396 Increase (decrease) in compensated absences 11,440 - 11,440 Increase (decrease) in deferred inflows - pension 1,874,905 1,874,905 - Increase (decrease) in deferred inflows - OPEB 83,728 - 83,728 Increase (decrease) in net pension liability (1,297,727) (1,297,727) - Increase (decrease) in total OPEB liability (111,533) - (111,533) Net cash provided by (used for) operating activities $ 5,487,500 $ 6,702,302 $ 12,189,802

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SUBJECT TO CHANGES
204
City of Santa Paula
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2022
The accompanying notes are an integral part of these financial statements. -24-
Harvest CFD
East Area 1
Custodial Fund
PBID
Custodial Fund
Successor
Agency
Private-purpose
Trust Fund
ASSETS
Cash and investments 763,143 $ 131,516 $ 496,081 $
Restricted cash and investments 1,538,409 - 294,548
Receivables
Interest 1,785 404 -
Loans, net - - 940
Total Assets 2,303,337 131,920 791,569

LIABILITIES
Accounts payable 5,311 - 400
Interest payable 317,916 - 16,698
Bonds payable 20,226,583 - 847,877
Total Liabilities 20,549,810 - 864,975

NET POSITION
Net position held for other agencies (18,246,473) $ 131,920 $ (73,405) $

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SUBJECT TO CHANGES
205
City of Santa Paula
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Year Ended June 30, 2022
The accompanying notes are an integral part of these financial statements. -25-
Harvest CFD
East Area 1
Custodial Fund
PBID
Custodial Fund
Successor
Agency
Private-purpose
Trust Fund

ADDITIONS
Property tax collections for other agencies 1,100,871 $ 86,102 $ 350,496 $ Interest income (2,593) (339) (1,815)
Total Additions 1,098,278 85,763 348,681

DEDUCTIONS
Administrative costs 43,802 66,276 3,470
Interest on bonds 988,571 - 75,318
Total Deductions 1,032,373 66,276 78,788
Change in Net Position 65,905 19,487 269,893
Net Position, Beginning, (18,312,378) 112,433 (343,298) Net Position, End $ (18,246,473) $ 131,920 $ (73,405)

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206
City of Santa Paula
Notes to Financial Statements
June 30, 2022
-26-
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A) Description of Reporting Entity
The City of Santa Paula (the City) is a municipal corporation operating as a general law city governed by a city council of five members. The accompanying financial statements present the government and its component units, entities for which the government is considered to be financially accountable. Blended component units, although legally separate entities, are, in substance, part of the government’s operations and are included in the City’s reporting entity because of the significance of their operational or financial relationships with the City.

Blended Component Units
The Santa Paula Public Financing Authority (the Authority) is governed by the City Council of the City. Although it is legally separate from the City, the Authority is reported as if it were part of the primary government because its sole purpose is to finance and construct the City’s public facilities.

The Santa Paula Utility Authority (the Utility Authority) was established through a Joint Powers Agreement between the City and the Redevelopment Agency. The members of the Board of Directors of the Utility Authority are the members of the City Council of the City.

The Utility Authority was established to provide financing, for purposes which are authorized by law and which could lease, own, operate, and maintain the water and wastewater enterprise, and any other utility system or service leased to the Utility Authority by the City or acquired by the Utility Authority. The Utility Authority is reported as enterprise funds.

Separate financial statements are not prepared for the Santa Paula Public Financing Authority or the Santa Paula Utility Authority.

B) Government-wide and Fund Financial Statements
The government-wide financial statements (i.e., the statement of net position and the statement of changes in net position) report information on all the nonfiduciary activities of the City and its component units. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support.

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

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SUBJECT TO CHANGES
207
City of Santa Paula
Notes to Financial Statements
June 30, 2022
-27-
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) B) Government-wide and Fund Financial Statements (continued) Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter, if any, are excluded from the government-wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements.

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

Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due.

Property taxes, sales taxes, franchise taxes, licenses, and interest associated with the current fiscal period are all considered to be susceptible to accrual, and therefore have been recognized as revenues within the current fiscal period. Only the portion of special assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue within the current period. All other revenue items are considered to be measurable and available only when cash is received by the City.

The City reports the following major governmental funds:

The General Fund is the City’s primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund.

Federal Grants Fund - This fund is used to account for federal grant activities.

State Grants Fund - This fund is used to account for state grant activities.

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City of Santa Paula
Notes to Financial Statements
June 30, 2022
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1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) C) Measurement Focus, Basis of Accounting, and Financial Statement Presentation (continued)
The City reports the following major proprietary funds:

The water and sewer funds account for the operation of the City’s water distribution system and the City’s sewage treatment plant, and sewage pumping stations.

The City reports the following fiduciary funds:

Harvest CFD East Area 1 Custodial Fund and the PBID Custodial Fund account for the assets held by the City in a custodial capacity. These funds include the collection of special assessments levied on various Assessment Districts and Community Facilities Districts property owners for the payment of debt service on no commitment debt.

The Successor Agency Private-purpose Trust Fund accounts for the wind down activities of the Santa Paula Redevelopment Agency.

As a general rule, the effect of interfund activity has been eliminated from the governmentwide financial statements. In the fund financial statements, quasi-external transactions are accounted for as revenues, expenditures, or expenses. Transactions that constitute reimbursement to a fund for expenditures/expenses initially made from it that are properly applicable to another fund, are recorded as expenditures/expenses in the reimbursement fund and as revenues in the fund that is reimbursed. All other interfund transaction except quasi-external transactions and reimbursements are reported as transfers.

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

Proprietary funds distinguish operating revenues and expenses from nonoperating items.

Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principle ongoing operations.

The principle operating revenues of the City’s enterprise funds are charges to customers for sales and services. The City also recognizes as operating revenue the portion of tap fees intended to recover the cost of connecting new customers to the system. Operating expenses for enterprise 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.

When both restricted and unrestricted resources are available for use, it is the government’s policy to use restricted resources first, then unrestricted resources as they are needed.

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City of Santa Paula
Notes to Financial Statements
June 30, 2022
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1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) D) Implementation of Governmental Accounting Standards Board (GASB) Pronouncements During the fiscal year ended June 30, 2022, the City implemented the following GASB standard:

GASB 87 – Lease Activities: The primary objective of this statement is to improve the guidance regarding the identification of lease activities for accounting and financial reporting purposes and how those activities should be reported.

E) Pensions
For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City’s California Public Employees’ Retirement System (CalPERS) plans (Plans) and additions to/deductions from the Plans’ fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.

F) Other Postemployment Benefits (OPEB)
For purposes of measuring the OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the City’s plan, if any, (OPEB Plan) and additions to/deductions from the OPEB Plan’s fiduciary net position, if any, have been determined on the same basis. For this purpose, benefit payments are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value. Generally accepted accounting principles require that the reported results must pertain to liability and asset information within certain defined timeframes. For this report, the following timeframes are used: June 30, 2020 Valuation Date, June 30, 2022 Measurement Date, July 1, 2021 through June 30, 2022 Measurement Period.

G) Assets, Liabilities, and Net Position or Equity
1) Deposits and Investments
The City’s cash and cash equivalents are considered to be cash on hand, demand deposits, and short term investments (including restricted assets) with original maturities of three months or less from the date of acquisition. For purposes of the statement of cash flows, cash equivalents represents demand deposits of proprietary funds held in financial institutions or in cash management pools where funds can be added or withdrawn at anytime without prior notice or penalty and with a maturity of three months or less from the date of acquisition.

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City of Santa Paula
Notes to Financial Statements
June 30, 2022
-30-
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) G) Assets, Liabilities, and Net Position or Equity (continued) 1) Deposits and Investments (continued)
Investments are included within the financial statement caption “Cash and Investments.” Investments for the government, as well as for its component units, are stated at their 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. The Local Agency Investment Fund operates in accordance with the appropriate state laws and regulations. The reported value of the pool is the same as the fair value of the pool shares.
2) Receivables and Payables
Activity between funds that is representative of lending/borrowing arrangements outstanding at the end of the fiscal year is referred to as either “due to/from other funds” (i.e., the current portion of interfund loans) or “advances to/from other funds” (i.e., the non-current portion of interfund loans). All other outstanding balances between funds are reported as “due to/from other funds.” Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as “internal balances.”
Advances between funds, as reported in the fund financial statements, are offset by a nonspendable fund balance account in applicable governmental funds to indicate that they are not available for appropriation and are not expendable available financial resources.

All trade and property taxes receivable are shown net of an allowance for uncollectibles.

Property taxes in the State of California are administered for all local agencies at the County level, and consist of secured, unsecured, and utility tax rolls.

Property taxes are levied as of January 1 preceding the fiscal year for which the taxes are levied. The fiscal year begins July and ends June 30 of the following year. Taxes are levied on both real and unsecured personal property, as it exists at the time. Liens against real estate, as well as the tax on personal property, are not relieved by subsequent renewal or change in ownership.

Tax levies are limited to 1% of full market value which results in a tax of $1.00 per $100 assessed valuation, under the provisions of Proposition 13. Tax rates for voter-approved indebtedness are excluded from this limitation.

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City of Santa Paula
Notes to Financial Statements
June 30, 2022
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1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) G) Assets, Liabilities, and Net Position or Equity (continued) 2) Receivables and Payables (continued)
The Assessor of the County of Ventura establishes property valuations for the secured and unsecured property tax rolls; the State Board of Equalization values the utility property tax roll. Under the provisions of Article XIIIA of the State Constitution (Proposition 13 adopted by the voters on June 6, 1978) properties are assessed at 100% of full value. From this base of assessment, subsequent annual increases in valuation are limited to a maximum of 2%. However, increases to full value are allowed for property improvements or upon change in ownership. Personal property is excluded from these limitations, and is subject to annual reappraisal.

Tax collections are the responsibility of the County Tax Collector. Taxes and assessments on secured and utility rolls which constitute a lien against the property may be paid in two installments; the first is due on November 1 of the fiscal year and is delinquent if not paid by December 10; and the second is due on February 1 of the fiscal year and is delinquent if not paid by April 10. Unsecured personal property taxes do not constitute a lien against real property unless the taxes become delinquent. Payment must be made in one installment, which is delinquent if not paid by August 31 of the fiscal year. Significant penalties are imposed by the County for late payments.

Due to the nature of the City-wide maximum levy, it is not possible to identify generalpurpose tax rates for specific entities. Under state legislation adopted subsequent to the passage of Proposition 13, appropriations to local agencies are made by the County Auditor-Controller based primarily on the ratio that each agency represented of the total City-wide levy for the three years prior to fiscal year 1979.

The State of California FY 90-91 Budget Act authorized counties to collect an administrative fee for collection and distribution of property taxes. Property taxes are recorded as net of administration fees withheld during the fiscal year. 3) Restricted Assets
Certain proceeds of the City’s tax allocation refunding bonds and the enterprise fund lease revenue bonds, as well as certain resources set aside for their repayment, are classified as restricted assets on the balance sheet because they are maintained in separate bank accounts and their use is limited by applicable bond covenants.

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City of Santa Paula
Notes to Financial Statements
June 30, 2022
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1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) G) Assets, Liabilities, and Net Position or Equity (continued) 4) Capital Assets
Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items), are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. The City defines capital assets as assets with an initial, individual cost of more than $5,000, or $25,000 for capital projects. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets received prior to the implementation of GASB 72 were recorded at fair value on the date of donation. Donated capital assets received subsequent to the implementation of GASB 72 are recorded at acquisition value as of the date received.

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

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

Years
Buildings 30-50
Building improvements 10-30
Infrastructure 25-60
Vehicles 3-10
Equipment 7-10
Computer equipment 5
5) Compensated Absences
It is the City’s policy to permit employees to accumulate earned but unused vacation and sick pay benefits. Cash compensations for accrued vacations are generally not payable until the employee terminates employment with the City. All vacation pay is accrued when incurred in the government-wide, proprietary, and fiduciary fund financial statements. A liability for these amounts is reported in the government funds only if they have matured, for example, as a result of employee resignations and retirements. 6) Long-term Obligations
In the government-wide financial statements, and proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type statement of net position. Bond premiums and discounts are amortized over the life of the bonds using the straight-line method. Bonds payable are reported net of the applicable bond premium or discount.

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City of Santa Paula
Notes to Financial Statements
June 30, 2022
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1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) G) Assets, Liabilities, and Net Position or Equity (continued) 6) Long-term Obligations (continued)
In the fund financial statements, governmental fund types recognize bond premiums and discounts during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. 7) Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position and balance sheet for the governmental funds will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents consumption of net position that applies to future period(s) and so will not be recognized as an outflow of resources (expense) until then. The City currently has two items that qualify for reporting in this category. The first is the deferred charge on refunding reported in the government-wide statement of net position and the statement of net position - proprietary funds. A deferred charge on refunding results from the difference in the carrying value of the refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt. The other items that qualify for reporting in this category are a result of the City’s implementation of GASB Statement No. 68 and 75.

In addition to liabilities, the statement of financial position and balance sheet for the governmental funds will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The City has one item, which arises only under the modified accrual basis of accounting, and others, which are a result of the City’s implementation of GASB Statement No. 68 and 75, which qualify for reporting in this category. Under the modified accrual basis of accounting, the item, unavailable revenue, is reported in the governmental funds balance sheet. The governmental funds report unavailable revenues from property taxes, special assessments, grant receivables, and other miscellaneous receivables. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available.
8) Net Position
In the Government-wide, proprietary funds, and fiduciary fund financial statements, net position is classified in the following categories.

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City of Santa Paula
Notes to Financial Statements
June 30, 2022
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1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) G) Assets, Liabilities, and Net Position or Equity (continued) 8) Net Position (continued)
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 this category.

Restricted Net Position
This category presents external restrictions imposed by creditors, grantors, contributors, or laws and regulations of other governments and restrictions imposed by law through constitutional provisions or enabling legislation.

Unrestricted Net Position
This category represents net position that is not externally restricted for any project or other purpose.
9) Net Position Flow Assumption
Sometimes the City will fund outlays for a particular purpose from both restricted (e.g. restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted net position and unrestricted net position in the statement of net position, a flow assumption must be made about the order in which the resources are considered to be applied.

It is the City’s policy to consider restricted net position to have been depleted before unrestricted net position.

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City of Santa Paula
Notes to Financial Statements
June 30, 2022
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1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) G) Assets, Liabilities, and Net Position or Equity (continued) 10) Fund Balance
Fund balances in governmental funds are reported in classifications that comprise a hierarchy based primarily on the extent to which the City is bound to honor constraints on the specific purposes for which amounts in those funds can be spent. Sometimes the City will fund outlays for a particular purpose from both restricted and unrestricted resources (the total of committed, assigned, and unassigned fund balance). In order to calculate the amounts to report as restricted, committed, assigned, and unassigned fund balance in the governmental fund financial statements a flow assumption must be made about the order in which the resources are considered to be applied. It is the government’s policy to consider restricted fund balance to have been depleted before using any of the components of unrestricted fund balance. Further, when the components of unrestricted fund balance can be used for the same purpose, committed fund balance is depleted first, followed by assigned fund balance. Unassigned fund balance is applied last.

The following classifications describe the relative strength of the spending constraints placed on the purposes for which resources can be used:

Nonspendable Fund Balance - Amounts that cannot be spent either because they are in nonspendable form or are required to be maintained intact.

Restricted Fund Balance - Amounts that are constrained to specific purposes by state or federal laws, or externally imposed conditions by grantors or creditors.

Committed Fund Balance - Amounts that may be specified by the City Council by ordinance or resolution to formally commit part of the City’s fund balances or future revenues for a specific purpose(s) or program. To change or repeal any such commitment will require an additional formal City Council action utilizing the same type of action that was originally used.

Assigned Fund Balance - Amounts that are constrained by the Council's intent to use specified financial resources for specific purposes, but are neither restricted nor committed.

Unassigned Fund Balance - These are either residual positive net resources of fund balance in excess of what can properly be classified in one of the other four categories, or negative balances.

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City of Santa Paula
Notes to Financial Statements
June 30, 2022
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2) STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
Deficit Fund Equity
The following non-major funds had deficit fund balances at June 30, 2022:

Nonmajor Governmental Funds:

Special Revenue Funds:

Mobile Home Rent Review (99,752) $
CA Oil Museum (15,847)
NPDES Storm Water Quality (39,685)
Capital Projects Funds:

Park Bond Grant (2,102)
Federal STP Grant (116,944)
Fiduciary Funds:

Harvest CFD East Area 1 Custodial Fund (18,246,473)
Successor Agency Private-purpose Trust Fund (73,405)
These deficits are expected to be reduced by future revenue or transfers from other funds. 3) CASH AND INVESTMENTS
The City’s cash and investments consist of the following at June 30, 2022:

Statement of Net Position:

Cash and investments 63,614,440 $
Restricted cash and investments 3,039,401
Statement of Fiduciary Net Position:

Cash and investments with fiscal agent 1,390,740
Restricted cash and investments 1,832,957
Total Cash and Investments 69,877,538 $
Cash and Investments consist of the following:

Petty cash $ 5,600
Deposits with financial institutions 7,908,304
Investments 61,963,634
Total Cash and Investments $ 69,877,538
Investments Authorized by the California Government Code and the City’s Investment Policy The investments are managed by the City Treasurer and Fiscal agents (Bond trustees acting in accordance with bond covenants). Investments managed by the City Treasurer are invested in accordance with the City’s investment policy. Investments managed by bond trustees are invested in accordance with provisions of the respective bond agreements, which generally are in accordance with provisions of the California Government Code 53601.

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City of Santa Paula
Notes to Financial Statements
June 30, 2022
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3) CASH AND INVESTMENTS (continued)
Investments Authorized by the California Government Code and the City’s Investment Policy (continued)
The City Treasurer has direct oversight over the City’s pooled investment fund which covers cash and cash equivalents of the City’s governmental funds, enterprise funds, and agency funds which are invested in accordance with the City’s investment policy. The investment policy generally complies with California Government Code Section 53601. The table below identifies the investment types that are authorized by the City’s investment policy and the California Government Code. The table also identifies certain provisions that address interest rate risk, credit risk, and concentration of credit risk.

Maximum Maximum
Authorized Maximum Percentage Investment Minimum
Investment Type Maturity of Portfolio in One Issuer Ratings Local Agency Investment Fund N/A None None None
Ventura County Pool N/A None None None
U.S. Treasury 3 years None None None
U.S. Agencies 3 years 20% None AAA
State Municipal Secutities 5 years None None AA
California Local Agency Municipal Securities 5 years None None AA Non-Negotiable Certificates of Deposit 5 years 20% None A Negotiable Certificates of deposits (CDs) 5 years 30% 15% AAA Placement Service Deposits 5 years 30% None None
Medium Term Corporate Notes 5 years 30% None AA
Asset-Backed Securities 4 years 20% None AA
Commercial Paper 270 days 25% 10% Prime
Bankers Acceptances 180 Days 40% 2% None
Money Market and Mutual funds N/A 20% 20% AAA
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 rates risk is by purchasing a combination of shorter term and longer term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations.

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

Remaining Maturity (in Months)
12 Months 13 to 24 25 to 60
Investment Type or Less Months Months Total
Local Agency Investment Fund 31,908,829 $ - $ - $ 31,908,829 $ U.S. Treasury 1,794,315 3,011,630 7,224,614 12,030,559
U.S. Agencies - 2,401,124 1,547,563 3,948,687
Negotiable Certificates of deposits (CDs) 747,183 - - 747,183 Medium Term Corporate Notes - 1,103,372 2,567,325 3,670,697 Asset-Backed Securities - 379,741 2,243,926 2,623,667
Money Market and Mutual funds 7,034,012 - - 7,034,012
Total 41,484,339 $ 6,895,867 $ 13,583,428 $ 61,963,634 $

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City of Santa Paula
Notes to Financial Statements
June 30, 2022
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3) 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. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the minimum rating required by (where applicable) the California Government Code or the City’s investment policy, or debt agreements, and the actual rating as of fiscal year end for each investment type.

Minimum Not
Investment Type Legal Rating Rated AAA/A1 Total
Local Agency Investment Fund N/A 31,908,829 $ - $ 31,908,829 $ U.S. Treasury - 12,030,559 12,030,559
U.S. Agencies - 3,948,687 3,948,687
Negotiable Certificates of deposits (CDs) - 747,183 747,183 Medium Term Corporate Notes - 3,670,697 3,670,697
Asset-Backed Securities - 2,623,667 2,623,667
Money Market and Mutual funds - 7,034,012 7,034,012
Total 31,908,829 $ 30,054,805 $ 61,963,634 $
Concentration of Credit Risk
The investment policy of the City contains no limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code. There are no investments in any one issuer (other than external investment pools) that represent 5% or more of total City investments.

Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The California Government Code and the City’s investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits, other than the following provision for deposits: The California Government Code requires that a financial institution secure deposits made by state or local government 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. At June 30, 2022, the City's had deposits of $4,487,360 in excess of the Federal Depository Insurance Corporation’s limits were held in uncollateralized accounts.

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City of Santa Paula
Notes to Financial Statements
June 30, 2022
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3) CASH AND INVESTMENTS (continued)
Custodial Credit Risk (continued)
The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party.

The California Government Code and the City’s investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for investments.

With respect to investments, custodial credit risk generally applies only to direct investments in marketable securities. Custodial credit risk does not apply to a local government’s indirect investments in securities through the use of mutual funds or government investment pools (such as LAIF).

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 City’s investment in this pool is reported in the accompanying financial statements at amounts based on the City’s pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis.

Fair Value of Investments
The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs.
4) RECEIVABLES
Receivables as of year-end for the City’s individual major funds and non-major funds in the aggregate, are as follows:

General Federal State Water Sewer Nonmajor and Total
Fund Grants Grants Utility Utility Other Funds Receivables Receivables:

Interest 27,453 $ 7,007 $ 4,945 $ 45,827 $ -$ $ 26,318 $ 111,550 Accounts 1,847,447 9,367 2,155,772 - 2,212,640 280,379 6,505,605 Total Receivables 1,874,900 $ $ 16,374 $ 4,945 $ 2,201,599 $ 2,212,640 $ 306,697 $ 6,617,155

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City of Santa Paula
Notes to Financial Statements
June 30, 2022
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5) CAPITAL ASSETS
Capital asset activity for the year ended June 30, 2022, was as follows:

Governmental Activities: Balance Balance
June 30, 2021 Additions Deletions June 30, 2022
Capital assets, not depreciated:

Land 489,183 $ - $ - $ 489,183 $
Construction in progress 2,133,380 1,250,818 - 3,384,198 Total capital assets, not
depreciated 2,622,563 1,250,818 - 3,873,381
Capital assets, being depreciated:

Buildings and system 3,446,262 - - 3,446,262
Machinery and equipment 4,463,170 447,944 - 4,911,114
Improvements other than buildings 37,727,777 - - 37,727,777 Total capital assets, being depreciated 45,637,209 447,944 - 46,085,153 Less accumulated depreciation:

Buildings and system (1,668,998) (115,319) - (1,784,317) Machinery and equipment (3,397,593) (230,249) - (3,627,842) Improvements other than buildings (13,164,956) (1,574,829) - (14,739,785) Total accumulated depreciation (18,231,547) (1,920,397) - (20,151,944) Net capital assets being depreciated 27,405,662 (1,472,453) - 25,933,209 Governmental activities, capital assets, net 30,028,225 $ (221,635) $ - $ 29,806,590 $

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City of Santa Paula
Notes to Financial Statements
June 30, 2022
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5) CAPITAL ASSETS (continued)
Business-Type Activities: Balance Balance
June 30, 2021 Additions Deletions June 30, 2022
Capital assets, not depreciated:

Land 7,104,082 $ - $ - $ 7,104,082 $
Water rights 13,834,827 - - 13,834,827
Construction in progress 6,644,620 1,154,471 - 7,799,091 Total capital assets, not
depreciated 27,583,529 1,154,471 - 28,738,000
Capital assets, being depreciated:

Buildings and system 86,348,920 - - 86,348,920
Improvements other than buildings 36,838,813 - - 36,838,813 Machinery and equipment 2,847,527 - (1,118) 2,846,409
Total capital assets, being depreciated 126,035,260 - (1,118) 126,034,142 Less accumulated depreciation:

Buildings and system (16,314,285) (1,176,148) - (17,490,433) Machinery and equipment (7,323,893) (982,713) 1,118 (8,305,488) Improvements other than buildings (1,985,362) (75,483) - (2,060,845) Total accumulated depreciation (25,623,540) (2,234,344) 1,118 (27,856,766) Net capital assets being depreciated 100,411,720 (2,234,344) - 98,177,376 Business-type activities, capital assets, net 127,995,249 $ (1,079,873) $ - $ 126,915,376 $ Depreciation was charged to functions/programs of the City as follows Governmental activities:

General government 64,499 $
Building and safety 163,706
Community services 594,114
Fire 16,563
Police 134,376
Public works 947,139
$ 1,920,397
Business-type Activities:

Water 1,085,467 $
Sewer 1,148,877
$ 2,234,344

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6) INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS
Amounts due to/from other funds are as follows:

Due to/froms
Receivable Fund Payable Fund Amount
General Fund Nonmajor governmental funds 291,718 $
The outstanding balances between funds are as a result of funds with negative cash borrowing from the General Fund.

Advances from/to other funds is as follows:

Advances
Receivable Fund Payable Fund Amount
Nonmajor governmental funds Nonmajor governmental funds 14,001 $ Amounts payable between the Nonmajor Governmental Funds are for park projects. This balance is not scheduled to be collected in the subsequent year.

Sewer Fund Advance
On February 1, 2010 the City entered into a Water Enterprise Lease Agreement and a Wastewater Enterprise Lease Agreement with the Santa Paula Utility Authority to lease to the Utility Authority the water and wastewater enterprise owned by the City. Under the terms of the agreements, lease payments are to be made from the Water and Sewer funds’ (which comprise the Utility Authority) surplus revenues to the City for an amount equal to “Total Rent.” Total Rent is defined in the agreements as having an aggregate present value at the date of the agreement of $77,850,759 and $18,083,341 for the water and wastewater enterprises respectively. The lease term shall end on February 22, 2065.

As mentioned above, the lease payments by the Utility Authority to the City are contingent upon the surplus revenues generated by the Water and Sewer funds. The amount of the lease rental payments could not be estimated due to the uncertainty of the amount of surplus revenues that may be generated by the Water and Sewer funds. The lease agreements are determined to be operating leases, and therefore no liability or asset has been recorded.

As provided in the trust agreement of the 2010 Wastewater Revenue Bonds, the Sewer fund of the Utility Authority transferred to the General fund an upfront lease rental payment of $5,000,000. The payment is to be used by the City to finance certain public capital improvements. The balance was paid-in-full as of June 30, 2021.

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6) INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS (continued) Interfund transfers are as follows:

Transfers Out Water Fund
Other
Governmental
Funds Total
General Fund $ - $ 48,874 $ 48,874
Sewer Fund 217,440 217,440 -
Other governmental funds - 338,465 338,465
$ 217,440 $ 387,339 $ 604,779
Transfers In
Transfers were made from the Sewer fund to the Water fund to reimburse various costs.

Transfers were made from the General Fund and Other Governmental Funds to Other Governmental Funds to pay for street projects.
7) LONG-TERM DEBT
Changes in Long-term Debt
Long-term debt activity for the year ended June 30, 2022 was as follows:

Beginning Ending Due Within
Balance Additions Deletions Balance One Year
Governmental Activities:

Compensated absences $ 594,716 $ 38,380 $ - $ 633,096 $ 316,548 Claims liability 1,215,216 75,116 (364,412) 925,920 -
Total governmental activities $ 1,809,932 $ 113,496 $ (364,412.00) $ 1,559,016 $ 316,548 Business-type Activities:

Water Revenue Bonds:
2019 Bonds $ 34,940,000 -$ $ (1,525,000) $ 33,415,000 $ 1,585,000 Add: Premium 6,304,965 - (339,281) 5,965,684 -
Wastewater Revenue Bonds:
2015A Bonds 10,210,000 - (915,000) 9,295,000 950,000
2020A Bonds 3,765,000 - - 3,765,000 -
Add: Premium 738,181 - (10,699) 727,482 -
2020B Bonds 64,990,000 - (390,000) 64,600,000 395,000
Note payable from direct borrowings 496,500 - - 496,500 - Compensated absences 30,098 11,440 - 41,538 41,538
Total business-type activities 121,474,744 $ $ 11,440 $ (3,179,980) $ 118,306,204 $ 2,971,538

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7) LONG-TERM DEBT (continued)
The General Fund is typically used to liquidate the compensated absences, claims liability, net pension liability, and total OPEB liability of the governmental activities. 2020 Wastewater Revenue Bonds
In October 2020, the Santa Paula Utility Authority, the “Utility Authority” (a component unit of the City) issued the 2020A and 2020B Wastewater revenue bonds in the aggregate amount of $69,125,000. The Bonds were issued to refund the 2010A and 2010B Wastewater Revenue Bonds and a portion of the 2015A Wastewater Revenues bonds, provide financing for improvements to the Water Enterprise System, and pay costs of bond issuance. The Wastewater Bonds are payable from net revenues of the Wasterwater Enterprise and other amounts pledged under the Indenture and investment earnings thereon. Interest is payable semi-annually on August 1st and February 1st of each year with principal maturing on February 1st of each year through 2055. The interest rate on the bonds ranges from 1.00% to 4.00%.

Debt service requirements to maturity for the 2020 Wastewater Enterprise Revenue Bonds are as follows:

Fiscal Year
Ending June 30, Principal Interest
2023 390,000 $ 2,236,301 $
2024 395,000 2,233,302
2025 395,000 2,230,276
2026 400,000 2,226,097
2027 405,000 2,220,905
2027-2031 4,465,000 10,869,277
2032-2036 7,975,000 9,880,774
2037-2041 11,210,000 8,466,963
2042-2046 13,165,000 6,506,127
2047-2051 15,525,000 4,139,371
2052-2055 14,430,000 1,277,024
$ 52,286,417 68,755,000 $

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7) LONG-TERM DEBT (continued)
2020 Wastewater Revenue Bonds (continued)
The net savings and economic gain (loss) from this refunding is unavailable due to the refunded bonds having variable interest rates.
2019 Water Revenue Bonds
In December 2019, the Santa Paula Utility Authority, the “Utility Authority” (a component unit of the City) issued $37,165,000 aggregate principal amount of Water Enterprise Revenue Bonds, 2019 Series, with proceeds used to effect the advance refunding of $43,550,000 of outstanding Santa Paula Public Financing Authority Water Revenue Bonds, Series 2010, and finance certain improvements to the Authority’s water system. The Water Bonds are payable from net revenues of the Water Enterprise held under the Water Bonds Indenture and investment earnings thereon. Interest is payable semi-annually on August 1st and February 1st of each year with principal maturing on February 1st of each year through 2040. The interest rate on the bonds ranges from 3.00% to 5.00%.

Debt service requirements to maturity for the Water Enterprise Revenue Bonds are as follows:

Fiscal Year
Ending June 30, Principal Interest
2023 1,585,000 $ 1,535,650 $
2024 1,660,000 1,456,400
2025 1,745,000 1,373,400
2026 1,830,000 1,286,150
2027 1,925,000 1,154,546
2027-2031 10,630,000 4,962,000
2032-2036 9,350,000 2,347,550
2037-2040 6,615,000 674,200
$ 14,789,896 35,340,000 $
2010 Wastewater Revenue Bonds
In February 2010, the Utility Authority issued $5,900,000 aggregate principal amount of Wastewater Enterprise Revenue Bonds, 2010A Series, Non-Taxable, and $6,130,000 aggregate principal amount of Wastewater Enterprise Revenue Bonds, 2010B Series, Taxable. Proceeds of the bonds will be used to finance an up-front lease payment to the City, finance certain improvements to the Utility Authority’s wastewater system, fund a reserve account, and pay issuance costs.

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7) LONG-TERM DEBT (continued)
2010 Wastewater Revenue Bonds (continued)
The wastewater bonds are payable from Net Revenues of the Wastewater Enterprise.

Interest is payable semi-annually on August 1st and February 1st of each year with principal maturing on February 1st of each year through 2040. The interest rate on the bonds ranges from 3.00% to 7.00%. The Bonds were refunding with the issuance of the 2020 Wasterwater Bonds.
2015 Wastewater Revenue Bonds
In April 2015, the Utility Authority issued $67,195,000 aggregate principal amount of Wastewater Enterprise Revenue Bonds, 2015A Series, Non-Taxable, and $2,035,000 aggregate principal amount of Wastewater Enterprise Revenue Bonds, 2015B Series, Taxable. Proceeds of the bonds were used to fund a termination payment payable to the operator of the wastewater treatment facility, fund a reserve account, pay issuance costs and, as to a portion of the 2015B Bonds, to pay other capital costs of the Wastewater Enterprise.

The 2015 Wastewater Revenue Bonds are payable from Net Revenues of the Wastewater Enterprise on parity with the 2010 Wastewater Revenue Bonds. Interest is payable semiannually on August 1st and February 1st of each year with principal maturing on February 1st of each year through 2050. The 2015A Bonds were partially refunded with the issuance of the 2020 Wastewater bonds. The interest rate on the bonds ranges from 3.50% to 5.00%.

Debt service requirements to maturity for the remaining Wastewater Enterprise Revenue Bonds, 2015A are as follows:

Fiscal Year
Ending June 30, Principal Interest
2023 915,000 $ 392,825 $
2024 950,000 356,225
2025 990,000 318,225
2026 1,030,000 278,625
2027 1,070,000 237,425
2027-2031 3,665,000 666,050
2032-2035 1,590,000 222,600
$ 2,471,975 10,210,000 $

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7) LONG-TERM DEBT (continued)
2015 Wastewater Revenue Bonds (continued)
Pursuant to each indenture, the Utility Authority covenants to fix, prescribe, revise, and collect rates, fees, and charges for the respective Enterprise as a whole for the services and improvements furnished by the Enterprise during each fiscal year which are at least sufficient, after making allowances for contingencies and error in the estimates, to yield revenues of that Enterprise sufficient to pay the following amounts in the following priority: a) all anticipated service fees due under the DBOF for such fiscal year in the case of the Wastewater Enterprise only; b) all anticipated operation and maintenance costs of the enterprise for such fiscal year; c) all debt service payments as they become due and payable during such fiscal year, without preference or priority, except to the extent such debt service payments are payable from the proceeds of the bonds or from any other source of legally available funds of the Utility Authority which have been deposited for such purpose prior to the commencement of such fiscal year; d) the amount, if any, required to restore the amount in the reserve account to the full amount of the reserve requirement; and e) all other payments required to meet any other obligations of the Utility Authority which are charges, liens, encumbrances upon or payable from the revenues during such fiscal year. The Utility Authority also covenants under the Indenture to fix, prescribe, revise and collect, or cause to be fixed, prescribed, revised and collected, rates, fees and charges for the services and improvements furnished by the Enterprise during each fiscal year that are sufficient to yield net revenues that are at least equal to one hundred twenty percent (120%) of the total debt service payments coming due and payable in such fiscal year.

Notes Payable
On January 2, 1996, the City purchased surface water rights and groundwater rights from the Santa Paula Waterworks, Ltd. by issuing notes for $496,500 at an interest rate of 9.87% per annum. Interest only payments are due annually with principal to be paid in full on January 2, 2026. Debt Service requirements to maturity are as follows:

Fiscal Year
Ending June 30, Principal Interest
2023 - $ 73,000 $
2024 - 73,000
2025 - 73,000
2026 - 73,000
2027 496,500 73,136
$ 365,136 496,500 $

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7) LONG-TERM DEBT (continued)
Fiduciary Fund
Tax Allocation Bonds
On March 21, 1994, the Redevelopment Agency of the City adopted a resolution authorizing the sale of $6,900,000 aggregate principal amount of Santa Paula Redevelopment Project 1994 Tax Allocation Refunding Bonds at interest rates ranging from 6.345% to 6.548% for the purpose of retiring $6,000,000 of Tax Allocation Notes issued on November 1, 1992.

The bonds mature on December 1 of each year to 2024 with interest payable semi-annually.

On June 7, 2000, the Agency defeased $2,285,000 of the $6,900,000 Tax Allocation Refunding Bonds by purchasing United States government securities in an irrevocable trust with an escrow agent utilizing existing funds. The bonds are considered to be partially defeased and the related liability has been removed from long-term debt.

Debt service requirements to maturity on the remaining bonds are as follows:

Fiscal Year
Ending June 30, Principal Interest
2023 255,000 $ 71,250 $
2024 265,000 54,825
2025 285,000 37,800
2026 305,000 19,575
$ 183,450 1,110,000 $
Changes in Long-term Debt
The following is a schedule of changes in long-term debt of the Successor Agency for the fiscal year ended June 30, 2021.

Beginning Ending Due Within
Balance Additions Deletions Balance One Year
Bonds payable:

Tax Allocation Refunding Bonds $ 1,110,000 $ - $ (255,000) $ 855,000 $ 265,000 Unamortized discount (7,123) - 1,426 (5,697) -
Total $ 1,102,877 $ (253,574) - $ $ 849,303 $ 265,000

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8) FUND BALANCE
The details of the fund balances as of June 30, 2021 are presented below:

Total Non-major
General Federal State Governmental
Fund Grants Grants Funds Total
Nonspendable:

Loans receivable $ 4,430 -$ -$ $ - $ 4,430
Permanent endowments - - - 823,191 823,191
Restricted:

Street work - 985 22,360 2,248,216 2,271,561
Hazard abatement - - - 540,083 540,083
Development fees - - - 914,547 914,547
Public safety - 4,399 314,547 63,240 382,186
Community development 2,848,694 - 887,608 5,666,242 9,402,544 Cable television - - - 175,850 175,850
Inclusionary housing - - - 2,136,375 2,136,375
Other 4 - 4
Committed:

General plan update 1,209,141 - - - 1,209,141
Unassigned: 10,008,320 - - (274,330) 9,733,990
Total $ 11,221,895 $ 2,854,078 $ 1,224,515 $ 12,293,414 $ 27,593,902 The unassigned category above encompasses fund designations that do not satisfy the criteria of the other categories presented. Included in the $10,008,320 unassigned fund balance of the General Fund is the City Council approved operating reserve of $3,859,598. 9) RISK MANAGEMENT

1. Description of Self-Insurance Pool Pursuant to Joint Powers Agreement The City is a member of the CALIFORNIA JOINT POWERS INSURANCE AUTHORITY (Authority). The Authority is composed of 124 California public entities and is organized under a joint powers agreement pursuant to California Government Code §6500 et seq.

The purpose of the Authority is to arrange and administer programs for the pooling of 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.

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9) RISK MANAGEMENT (continued)

2. 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.

The total funding requirement for self-insurance programs is estimated using actuarial models and prefunded through the annual contribution. Costs are allocated to individual agencies based on exposure (payroll) and experience (claims) relative to other members of the risk-sharing pool. Additional information regarding the cost allocation methodology is provided below.

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

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

Workers’ Compensation
Claims are pooled separately between public safety (police and fire) and general government exposures. (1) The payroll of each member is evaluated relative to the payroll of other members. A variable credibility factor is determined for each member, which establishes the weight applied to payroll and the weight applied to losses within the formula. (2) The first layer of losses includes incurred costs up to $75,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the first layer. (3) The second layer of losses includes incurred costs from $75,000 to $200,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the second layer. (4) Incurred costs from $200,000 to statutory limits are distributed based on the outcome of cost allocation within the first and second loss layers.

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9) RISK MANAGEMENT (continued)

2. Self-Insurance Programs of the Authority (continued) Workers’ Compensation, (continued)
For 2021-22 the Authority’s pooled retention is $1 million per occurrence, with reinsurance to statutory limits under California Workers’ Compensation Law. Employer’s Liability losses are pooled among members to $1 million. Coverage from $1 million to $5 million is purchased through reinsurance policies, and Employer’s Liability losses from $5 million to $10 million are pooled among members.

3. Purchased Insurance
Pollution Legal Liability Insurance
The City of participates in the pollution legal liability insurance program which is available through the Authority. The policy covers sudden and gradual pollution of scheduled property, streets, and storm drains owned by the City. Coverage is on a claims-made basis.

There is a $250,000 deductible. The Authority has an aggregate limit of $20 million.

Property Insurance
The City participates in the all-risk property protection program of the Authority. This insurance protection is underwritten by several insurance companies. City property is currently insured according to a schedule of covered property submitted by the City to the Authority. City property currently has all-risk property insurance protection in the amount of $144,455,267. There is a $10,000 deductible per occurrence except for non-emergency vehicle insurance which has a $2,500 deductible.

Earthquake and Flood Insurance
The City 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 property currently has earthquake protection in the amount of $71,280,510. There is a deductible of 5% per unit of value with a minimum deductible of $100,000.

Crime Insurance
The City purchases crime insurance coverage in the amount of $1,000,000 with a $2,500 deductible. The fidelity coverage is provided through the Authority.

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9) RISK MANAGEMENT (continued)

2. Self-Insurance Programs of the Authority (continued) Special Event Tenant User Liability Insurance
The City further protects against liability damages by requiring tenant users of certain property to purchase low-cost tenant user liability insurance for certain activities on agency property. The insurance premium is paid by the tenant user and is paid to the City according to a schedule. The City then pays for the insurance. The insurance is facilitated by the Authority.

3. 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.

5. Claims and Judgments
The City accounts for uninsured, material claims and judgments and associated legal and administrative costs when it is probable that the liability claim has been incurred and the amount of the loss can be reasonably estimated. Included therein are claims incurred but not reported, which consists of (a) known loss events expected to be presented as claims later, (b) unknown loss events that are expected to become claims, and (c) expected future development on claims already reported. This is based upon historical actual results that have established a reliable pattern supplemented by specific information about current matters. Small dollar claims and judgments are recorded as expenditures when paid. The following claims schedule includes workers’ compensation and general liability for the past two fiscal years.

Beginning Current Year Claim Payments
of Year Claims and Changes for Current and End of Year
Year Liability in Estimates Prior Years Liability
2019-2020 1,857,784 $ - $ 539,048 $ 1,318,736 $
2020-2021 1,318,736 131,451 234,971 1,215,216
2021-2022 1,215,216 75,116 364,412 925,920

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10) CONTINGENT LIABILITIES
Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor agencies, principally the federal government. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amount, if any, of expenditures that may be disallowed by the grantor cannot be determined at this time, although the City expects such amounts, if any, to be immaterial.

The City, as part of a consent judgment entered into on September 24, 2007, was required to construct a new water recycling facility (“WRF”) no later than December 15, 2010. The WRF was constructed and placed into operation prior to the December 15, 2010 deadline.

However, the WRF does not fully comply with the consent judgment, and therefore, may be subject to additional penalties. The amount of penalties, if any, has not been determined.

The City is a defendant in various other lawsuits. Although the outcome of these lawsuits is not presently determinable, in the opinion of the City’s counsel the resolution of these matters will not have a material adverse effect on the financial condition of the City.

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11) PENSION PLAN
A. General Information about the Pension Plan
Plan Description
All qualified permanent and probationary employees are eligible to participate in the Public Agency Cost-Sharing Multiple-Employer Defined Benefit Pension Plan (Plan or PERF C) administered by the California Public Employees’ Retirement System (CalPERS.) The Plan consists of a miscellaneous pool and a safety pool (also referred to as “risk pools”), which are comprised of individual employer miscellaneous and safety rate plans, respectively. Plan assets may be used to pay benefits for any employer rate plan of the safety and miscellaneous pools. Accordingly, rate plans within the safety or miscellaneous pools are not separate plans under generally accepted accounting principles. Individual employers may sponsor more than one rate plan in the miscellaneous or safety risk pools. The City participates in five rate plans (three miscellaneous, two safety). Benefit provisions under the Plan are established by State statute and City resolution. CalPERS issues publicly available reports that include a full description of the pension plan regarding benefit provisions, assumptions and membership information that can be found on the CalPERS’ website, at www.calpers.ca.gov.

Benefits Provided
CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full-time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 5 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost-of-living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law.

The Plan operates under the provisions of the California Public Employees’ Retirement Law (PERL), the California Public Employees’ Pension Reform Act of 2013 (PEPRA), and the regulations, procedures and policies adopted by the CalPERS Board of Administration. The Plan’s authority to establish and amend the benefit terms are set by the PERL and PEPRA, and may be amended by the California state legislature and in some cases require approval by the CalPERS Board.

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11) PENSION PLAN (continued)
A. General Information about the Pension Plan (continued) The Plan’s provisions and benefits in effect at June 30, 2021 are summarized as follows:

Miscellaneous Miscellaneous Tier II Miscellaneous PEPRA Prior to Prior to On or after
Hire date January 1, 2013 January 1, 2013 January 1, 2013 Benefit formula 2.5% @ 55 2% @ 55 2% @ 62
Benefit vesting schedule 5 years service 5 years service 5 years service Benefit payments monthly for life monthly for life monthly for life Retirement age 50-60 50-60 52-62
Monthly benefits, as a % of eligible compensation Highest single year Highest single year Highest single year Required employer contribution rates 12.200% 10.880% 7.590% Safety Safety PEPRA
Prior to On of after
Hire date January 1, 2013 January 1, 2013
Benefit formula 3% @ 50 2.7% @ 57
Benefit vesting schedule 5 years service 5 years service Benefit payments monthly for life monthly for life
Retirement age 50-55 50-55
Monthly benefits, as a % of eligible compensation 3 year average 3 year average Required employer contribution rates 22.480% 13.130%
Contributions
Section 20814(c) of the California Public Employees’ Retirement Law (PERL) requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate.

The total plan contributions are determined through CalPERS’ annual actuarial valuation process. For public agency cost-sharing plans covered by either the Miscellaneous or Safety risk pools, the Plan’s actuarially determined rate is based on the estimated amount necessary to pay the Plan’s allocated share of the risk pool’s costs of benefits earned by employees during the year, and any unfunded accrued liability. The employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. Employer contribution rates may change if plan contracts are amended.

Payments made by the employer to satisfy contribution requirements that are identified by the pension plan terms as plan member contribution requirements are classified as plan member contributions. Employer Contributions to the Plan for the fiscal year ended June 30, 2021 were $2,958,871. The actual employer payments of $2,719,034 made to CalPERS by the City during the measurement period ended June 30, 2020 differed from the City’s proportionate share of the employer’s contributions of $3,322,022 by $602,988, which is being amortized over the expected average remaining service lifetime in the Public Agency Cost-Sharing Multiple Employer Plan.

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11) PENSION PLAN (continued)
B. Net Pension Liability
The City’s net pension liability for the Plan is measured as the total pension liability, less the pension plan’s fiduciary net position. The net pension liability is measured as of June 30, 2020, using an annual actuarial valuation as of June 30, 2019 rolled forward to June 30, 2020 using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is as follows.

Actuarial Methods and Assumptions Used to Determine Total Pension Liability Valuation Date June 30, 2020
Measurement Date June 30, 2021
Actuarial Cost Method Entry Age Normal
Asset Valuation Method Market Value of Assets
Actuarial Assumptions:

Discount Rate 7.15%
Inflation 2.50%
Salary Increases Varies by Entry Age and Service
Mortality Rate Table (1) Derived using CalPERS' membership data for all funds Post Retirement Benefit Increase The lesser of contract COLA or 2.50% until Purchasing Power Protection Allowance floor on purchasing power applies, 2.50% thereafter.
(1) The mortality table used was developed based on CalPERS’ specific data. The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre-retirement and Post-retirement mortality rates include 15 years of projected mortality improvement using 90% of Scale MP-2016 published by the Society of Actuaries. For more details on this table, please refer to the CalPERS Experience Study and Review of Actuarial Assumptions report from December 2017 that can be found on the CalPERS website.

All other actuarial assumptions used in the June 30, 2019 valuation were based on the results of an actuarial experience study for the period from 1997 to 2015, including updates to salary increase, mortality and retirement rates. The Experience Study report can be obtained at CalPERS’ website, at www.calpers.ca.gov.

Long-term Expected Rate of Return
The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.

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11) PENSION PLAN (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 shortterm 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 Asset Real Return Real Return
Asset Class1 Allocation Years 1 - 10 2 Year 11+3
Global equity 50.0% 4.80% 5.98%
Fixed income 28.0% 1.00% 2.62%
Inflation assets - 0.77% 1.81%
Private equity 8.0% 6.30% 7.23%
Real assets 13.0% 3.75% 4.93%
Liquidity 1.0% - -0.92%
2 An expected inflation of 2.00% used for this period
3 An expected inflation of 2.92% used for this period
1 In the System's ACFR, Fixed Income is included in Global Debt Securities; Liquidity is included in Short-Term Investments.; Inflation Assets are included in both Global Equity Securities and Global Debt Securities.

Change of Assumptions
The Plan adopted a new amortization policy effective with the 2019 actuarial valuation. The new amortization policy shortens the period over which actuarial gains and losses are amortized from 30 years to 20 years with the payments computed as a level dollar amount.

In addition, the new policy does not utilize a five-year ramp-up and ramp-down on UAL bases attributable to assumption changes and non-investment gains/losses. The new policy also does not utilize a five-year ramp-down on investment gains/losses. These changes apply only to new UAL bases established on or after June 30, 2019.

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City of Santa Paula
Notes to Financial Statements
June 30, 2022
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11) PENSION PLAN (continued)
B. Net Pension Liability (continued)
Discount Rate
The discount rate used to measure the total pension liability for PERF C was 7.15%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

Pension Plan Fiduciary Net Position
Information about the pension plan’s assets, deferred outflows of resources, liabilities, deferred inflows of resources, and fiduciary net position are presented in CalPERS’ audited financial statements, which are publicly available reports that can be obtained at CalPERS’ website, at www.calpers.ca.gov. The plan’s fiduciary net position and additions to/deductions from the plan’s fiduciary net position have been determined on the same basis used by the pension plan, which is the economic resources measurement focus and the accrual basis of accounting. Benefits and refunds are recognized when due and payable in accordance with the terms of the plan. Investments are reported at fair value.

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

Increase (Decrease)
Plan Total Plan Fiduciary Plan Net
Pension Liability Net Position Pension Liability
Balance at: 6/30/2020 (VD) $ 97,273,187 $ 68,863,061 $ 28,410,126 Balance at: 6/30/2021 (VD) 100,842,869 81,553,970 19,288,899 Net Changes during 2020-21 $ 3,569,682 $ 12,690,909 $ (9,121,227) VD (Valuation Date); MD (Measurement Date)

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City of Santa Paula
Notes to Financial Statements
June 30, 2022
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11) PENSION PLAN (continued)
C. Proportionate Share of Net Pension Liability (continued) The City’s proportion of the net pension liability was determined by CalPERS using the output from the Actuarial Valuation System and the fiduciary net position, as provided in the CalPERS Public Agency Cost-Sharing Allocation Methodology Report, which is a publicly available report that can be obtained at CalPERS’ website, at www.calpers.ca.gov. The City’s proportionate share of the net pension liability for the total Plan as of the June 30, 2019 and 2020 measurement dates was as follows:

Proportionate Share - June 30, 2021 0.26111%
Proportionate Share - June 30, 2022 0.35665%
Change - Increase (Decrease) 0.09554%
Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate
The following presents the City’s proportionate share of the net pension liability of the Plan as of the measurement date, calculated using the discount rate of 7.15%, as well as what the net pension liability would be if it were calculated using a discount rate that is 1 percentage-point lower (6.15%) or 1 percentage-point higher (8.15%) than the current rate:

Discount Rate - 1% Current Discount Discount Rate + 1%
(6.15%) Rate (7.15%) (8.15%)
Plan's Net Pension
Liability/(Asset) 32,732,678 $ 19,288,899 $ 8,210,996 $ Subsequent Events
There were no subsequent events that would materially affect the results presented in this disclosure.

Amortization of Deferred Outflows and Deferred Inflows of Resources Under GASB 68, gains and losses related to changes in total pension liability and fiduciary net position are recognized in pension expense systematically over time.

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

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City of Santa Paula
Notes to Financial Statements
June 30, 2022
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11) PENSION PLAN (continued)
C. Proportionate Share of Net Pension Liability (continued) The amortization period differs depending on the source of the gain or loss:

Net difference between projected and
actual earnings on pension plan
investments
5 year straight-line amortization
All other amounts Straight-line amortization over the
expected average remaining service lives
(EARSL) of all members that are provided
with benefits (active, inactive and retired)
as of the beginning of the measurement
period.

The expected average remaining service lifetime (EARSL) is calculated by dividing the total future service years by the total number of plan participants (active, inactive, and retired) in the Public Agency Cost-Sharing Multiple-Employer Plan (PERF C).

The EARSL for PERF C for the measurement period ending June 30, 2020 is 3.8 years, which was obtained by dividing the total service years of 548,581 (the sum of remaining service lifetimes of the active employees) by 145,663 (the total number of participants:
active, inactive, and retired) in PERF C. Inactive employees and retirees have remaining service lifetimes equal to 0. Total future service is based on the members’ probability of decrementing due to an event other than receiving a cash refund.

D. Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions
As of the start of the measurement period (July 1, 2019), the City’s net pension liability was $26,539,944. For the measurement period ending June 30, 2020 (the measurement date), the Local Government incurred a pension expense of $4,225,148.

As of June 30, 2021, the City has deferred outflows and deferred inflows of resources related to pensions as follows:

Deferred Outflows Deferred Inflows
of Resources of Resources
Changes in assumptions - $ 1 $
Differences between expected and actual experience 2,750,525 - Net difference between projected and actual
earnings on plan investments - 14,058,826
Differences between the employer's contributions and
the employer's proportionate share of contributions 11,177 986,299 Changes in employer's proportion 883,942 478,565
Pension contributions subsequent to measurement date 2,955,772 - Total 6,601,416 $ 15,523,691 $

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City of Santa Paula
Notes to Financial Statements
June 30, 2022
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11) PENSION PLAN (continued)
D. Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions (continued)
The amounts above are net of outflows and inflows recognized in the 2019-20 measurement period expense. Contributions subsequent to the measurement date of $2,958,871 reported with deferred outflows of resources will be recognized as a reduction of the net pension liability in the upcoming fiscal year. Other amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in future pension expense as follows:

Fiscal Year Deferred
Endiing Outflows/(Inflows)
Fiscal Year of Resources
2023 (2,351,555) $
2024 (2,583,063)
2025 (3,065,215)
2026 (3,878,214)
2027 -
Thereafter -
E. Payable to the Pension Plan
At June 30, 2021, the City reported a payable of $0 for the outstanding amount of contributions to the pension plan required for the year then ended. 12) OTHER POSTEMPLOYMENT BENEFITS
Plan Description - The City provides the same medical plans to retirees and surviving spouses as to its active employees, with the exception that once a retiree becomes eligible for Medicare, he or she must join a Medicare HMO or a Medicare Supplement plan, with Medicare becoming the primary payer. The plan is a single employer defined contribution post-employment healthcare benefits plan. No assets are accumulated in a trust that meets the criteria in paragraph 4 of Statement 75.

Benefits Provided - Employees are eligible for retiree health benefits if they retire from the City on or after age 50 and 5 years of service (age 52 for Miscellaneous PEPRA employees), and continue health insurance through a City-sponsored health insurance plan, the City will contribute the minimum monthly amount (as required by CalPERS) of the health insurance premium ($139 and $143 for the calendar years 2020 and 2021 respectively). The City’s health plan does not issue a publicly available financial report.

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City of Santa Paula
Notes to Financial Statements
June 30, 2022
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12) OTHER POSTEMPLOYMENT BENEFITS (continued)
Employees Covered by Benefit Terms - As of the June 30, 2021 measurement date, the following current and former employees were covered by the benefit terms under the Plan:

Retirees or spouses of retirees
currently receiving benefits 21
Retirees entitled to but not yet receiving benefits 85
Active employees 113
219
Contributions - The Plan and its contribution requirements are established by Memoranda of Understanding with the applicable employee bargaining units and may be amended by agreements between the City and the bargaining units. The annual contributions to the Plan are based on the costs to provide the benefits as described above on a pay as you go basis.

For the fiscal year ended June 30, 2021, the City’s pay-as-you-go costs cash benefit payments were $38,777. Total employer contributions, including the implied subsidy, were $61,373.

Total OPEB Liability - The City’s total OPEB liability was measured as of June 30, 2021 and the total OPEB liability used to calculate the OPEB liability was determined by an actuarial valuation dated June 30, 2020, based on the following actuarial methods and assumptions:

Valuation Date June 30, 2020
Actuarial Cost Method Entry Age Actuarial Cost
Mortality CalPERS 1997-2015 Experience Study
Age at Retirement 50
Health Care Trend Rate 6.75% initial, 3.75% ultimate
Inflation Rate 2.50%
Salary Changes Aggregate - 2.75% annually
Merit - CalPERS 1997-2015 Experience Study
Discount Rate 3.54% at June 30, 2022 (Bond Buyer 20-Bond Index)

2.16% at June 30, 2021 (Bond Buyer 20-Bond Index)
Medical CPI 4.00% - used to project PERS statutory minimum benefit Discount Rate - The discount rate used to measure the total OPEB liability was 2.16% and is based on the Bond Buyer 20-Bond GO index.

Changes in Assumptions - The discount rate used to measure the total OPEB liability was changed to 2.16% from 2.21%. Inflation was decreased from 2.75% to 2.5%. In addition, the medical claims curve was updated, the implied subsidy was removed for Medicare plans and the mortality scale was updated to Scale MP-2021.

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City of Santa Paula
Notes to Financial Statements
June 30, 2022
-63-
12) OTHER POSTEMPLOYMENT BENEFITS (continued)
Changes in the Total OPEB Liability
Total OPEB
Liability (TOL)
Balance at June 30, 2021 3,137,716 $
Changes in the year:

Service cost 275,559
Interest on the total OPEB liability 73,033
Assumption changes (661,776)
Benefit payments, including implicit subsidy (64,242)
Net changes (377,426)
Balance at June 30, 2022 2,760,290 $
Sensitivity of the Total OPEB Liability to changes in the Discount Rate - The following presents the total OPEB liability of the City if it were calculated using a discount rate that is 1-percentage-point lower or 1-percentage-point higher than the current discount rate:
1% Decrease Current Rate 1% Increase
(2.54%) (3.54%) (4.54%)
Total OPEB liability 3,218,199 $ 2,760,290 $ 2,393,758 $ Discount Rate
Sensitivity of the Net OPEB Liability to changes in the Healthcare Cost Trend Rates - The following presents the net OPEB liability of the City, as well as what the City’s Net OPEB would be if it were calculated using a healthcare cost trend rate that is 1-percentagepoint lower or 1-percentage-point higher than the current healthcare cost trend rate:
1% Decrease Current Rates 1% Increase
Total OPEB liability 2,289,827 $ 2,760,290 $ 3,377,220 $ Healthcare Trend Rate

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City of Santa Paula
Notes to Financial Statements
June 30, 2022
-64-
12) OTHER POSTEMPLOYMENT BENEFITS (continued)
OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB - For the year ended June 30, 2021, the City recognized OPEB expense of $303,716. The City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:

Deferred Outflows Deferred Inflows
of Resources of Resources
Changes of assumptions 652,982 $ 1,008,004 $
Net differences between projected and actual
earnings on plan investments - 989,008
Total 652,982 $ 1,997,012 $
Amounts reported as deferred outflows of resources and deferred inflows of resources related to the Total OPEB liability will be recognized as OPEB expense as follows:

Year Ending
June 30,
2023 (128,641) $
2024 (128,641)
2025 (128,641)
2026 (128,641)
2027 (112,782)
Thereafter (716,684)
13) LOANS RECEIVABLE
The City has issued first-time homebuyer and residential rehabilitation loans to low-and moderate-income residents. These loans are to be repaid over a specified period of time or upon sale of the property. As of June 30, 2022, the amount of loans receivable at year-end is $329,500.
14) CONSTRUCTION COMMITMENTS
The estimated amount of remaining construction contract obligations at year-end is $38,283,616.

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City of Santa Paula
Notes to Financial Statements
June 30, 2022
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15) DEBT WITHOUT GOVERNMENT COMMITMENT
The City has various outstanding bond issues which are not reflected in these financial statements. These bond issues are special obligations payable solely from and secured by specific revenue sources described in the resolutions and official statements of the respective issues. Neither the faith and credit nor the taxing power of the City, the State of California or any political subdivision thereof, is pledged for the payment of these bonds. No legal obligation on the part of the City exists to make payments on the bonds from any source other than the revenues or assets pledged therefore. The programs are completely administered by trustees, and the total outstanding balance at June 30, 2022 is $19,315,000.

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REQUIRED SUPPLEMENTARY INFORMATION

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247
City of Santa Paula
Required Supplementary Information
Schedule of Revenues, Expenditures and Changes in Fund Balance Budget and Actual – General Fund
For the Year Ended June 30, 2022
-66-
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget

REVENUES
Taxes 11,525,000 $ $ 13,653,941 $ 46,355 13,700,296 $
Licenses and permits 1,274,300 1,515,700 1,510,745 (4,955) Intergovernmental 634,518 872,188 734,908 (137,280)
Charges for services 3,170,313 1,593,901 1,723,937 130,036 Fines and forfeitures 91,500 113,900 112,382 (1,518)
Investment earnings 102,000 12,000 (49,099) (61,099)
Other revenues 56,600 242,050 197,407 (44,643)
Total Revenues 16,854,231 18,003,680 17,930,576 (73,104)

EXPENDITURES
Current:

General government 1,322,186 1,483,686 1,282,788 200,898 Building and safety 659,006 733,239 674,513 58,726
Community services 2,297,842 2,833,488 1,947,666 885,822 Financial services 660,764 660,764 641,378 19,386
Planning 1,071,690 934,457 777,458 156,999
Police 9,226,009 9,234,044 8,181,055 1,052,989
Public works 2,216,304 5,824,731 1,338,240 4,486,491
Total Expenditures 17,453,801 21,704,409 14,843,098 6,861,311 Excess (Deficiency) of Revenues
over Expenditures (599,570) (3,700,729) 3,087,478 6,788,207

OTHER FINANCING SOURCES (USES)
Transfers out (24,437) (24,437) (48,874) (24,437)
Total Other Financing
Sources (Uses) (24,437) (24,437) (48,874) (24,437)
Net Change in Fund Balance (624,007) (3,725,166) 3,038,604 6,763,770 Fund Balance, Beginning 8,183,291 8,183,291 8,183,291 - Fund Balance, Ending $ 7,559,284 $ 4,458,125 $ 6,763,770 11,221,895 $

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City of Santa Paula
Required Supplementary Information
Schedule of Revenues, Expenditures and Changes in Fund Balance Budget and Actual – Federal Grants – Major Special Revenue Fund For the Year Ended June 30, 2022
-67-
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget

REVENUES
Intergovernmental $ 836,919 $ 3,670,538 $ 3,692,937 $ 22,399 Charges for services - - 2,269 2,269
Investment earnings 100 100 (7,398) (7,498)
Other revenues - - 5,551 5,551
Total Revenues 837,019 3,670,638 3,693,359 22,721

EXPENDITURES
Current:

General government 10,000 596,122 80,635 515,487
Building and safety - 5,878 5,878 -
Community services 104,424 511,303 208,755 302,548
Financial services 50,000 50,000 14,361 35,639
Planning 100,000 150,000 35,288 114,712
Police 65,495 320,495 316,120 4,375
Public works 494,000 2,033,619 160,115 1,873,504
Total Expenditures 823,919 3,667,417 821,152 2,846,265
Net Change in Fund Balance 13,100 3,221 2,872,207 2,868,986 Fund Balance, Beginning 94,807 94,807 94,807 -
Fund Balance, Ending $ 107,907 $ 98,028 $ 2,967,014 $ 2,868,986

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City of Santa Paula
Required Supplementary Information
Schedule of Revenues, Expenditures and Changes in Fund Balance Budget and Actual – State Grants – Major Special Revenue Fund For the Year Ended June 30, 2022
-68-
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget

REVENUES
Intergovernmental $ 160,750 $ 3,422,079 $ 1,874,946 $ (1,547,133) Investment earnings - - (7,570) (7,570)
Total Revenues 160,750 3,422,079 1,867,376 (1,554,703)

EXPENDITURES
Current:

Planning - 1,500,000 620,522 879,478
Fire - 1,462,025 1,452,121 9,904
Police 150,000 150,000 66,530 83,470
Public works 6,750 606,054 300,298 305,756
Total Expenditures 156,750 3,718,079 2,439,471 1,278,608 Net Change in Fund Balance 4,000 (296,000) (572,095) (276,095) Fund Balance, Beginning 2,013,174 2,013,174 2,013,174 - Fund Balance, Ending $ 2,017,174 $ 1,717,174 $ 1,441,079 $ (276,095)

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City of Santa Paula
Required Supplementary Information
Schedule of Changes in the City’s Total OPEB Liability and Related Ratios Last 10 Fiscal Years*
-69-
2018 2019 2020 2021 2022
Total OPEB Liability
Service cost $ 172,347 $ 165,476 $ 186,457 $ 263,423 $ 275,559 Interest on total OPEB liability 109,883 121,523 125,245 104,357 73,033 Changes in assumptions (142,751) 194,758 817,178 (430,654) (661,776) Actual vs. expected experience - - - (1,227,322) -
Benefit payments, including implicit subsidy (58,033) (65,697) (63,145) (61,373) (64,242) Net change in total OPEB liability 81,446 416,060 1,065,735 (1,351,569) (377,426) Total OPEB liability - beginning 2,926,044 3,007,490 3,423,550 4,489,285 3,137,716 Total OPEB liability - ending $ 3,007,490 $ 3,423,550 $ 4,489,285 $ 3,137,716 $ 2,760,290 Covered-employee payroll $ 5,911,227 $ 7,083,647 $ 7,592,656 $ 7,257,288 $ 11,198,803 Total OPEB liability as a percentage of
covered-employee payroll 50.88% 48.33% 59.13% 43.24% 24.65% Notes to the Schedule:

Benefit Changes: None
No assets are accumulated in a trust that meets the criteria in GASB No. 75, paragraph 4, to pay related benefits. *Fiscal year 2018 was the first year of implementation, therefore, not all 10 years of information is available.

Changes in Assumptions: For the June 30, 2022 measurement date: Discount rate was updated based on municipal bond rate, inflation decreased from 2.75% to 2.50%; medical claims curves updated; implied subsidy removed for Medicare plans; and mortality improvements scale was updated to Scale MP-2021.

Measurement Period

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City of Santa Paula
Required Supplementary Information
Schedule of the City’s Proportionate Share of the Net Pension Liability Last 10 Fiscal Years*
-70-
Measurement Date
Employer's
Proportion of the
Collective Net
Pension Liability1
Employer's
Proportionate
Share of the
Collective Net
Pension Liability Covered Payroll
Employer's
Proportionate
Share of the
Collective Net
Pension Liability
as a percentage of
the Covered
Payroll
Pension Plan's
Fiduciary Net
Position as a
percentage of the
Total Pension
Liability
2014 0.2563% 15,947,485 $ $ 5,991,638 266.16% 78.49%
2015 0.2732% 18,748,806 6,552,813 286.12% 74.94%
2016 0.2613% 22,609,596 6,795,547 332.71% 74.06%
2017 0.2529% 25,075,293 6,136,996 408.59% 70.42%
2018 0.2579% 24,852,880 5,911,227 420.44% 71.58%
2019 0.2590% 26,539,944 6,929,552 383.00% 71.36%
2020 0.2611% 28,410,126 7,436,975 382.01% 70.79%
2021 0.3567% 19,288,899 7,257,288 265.79% 70.79%
* Measurement date 6/30/2014 (fiscal year 2015) was the first year of implementation. Additional years will be presented as information becomes available.
1 Proportion of the net pension liability represents the plan's proportion of PERF C, which includes both the Miscellaneous and Safety Risk Pools excluding the 1959 Survivors Risk Pool.

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City of Santa Paula
Required Supplementary Information
Schedule of Plan Contributions
Last 10 Fiscal Years*
-71-
Fiscal Year
Actuarially
Determined
Contribution
Contributions in
Relation to the
Actuarially
Determined
Contribution
Contribution
Deficiency
(Excess)
Covered
Payroll
Contributions as a
Percentage of
Covered Payroll
6/30/2015 $ (2,159,536) 2,159,536 $ - $ 6,552,813 $ 32.96% 6/30/2016 (2,324,486) 2,324,486 - 6,795,547 34.21%
6/30/2017 (1,967,182) 1,967,182 - 6,136,996 32.05%
6/30/2018 (2,068,107) 2,068,107 - 5,911,227 34.99%
6/30/2019 (2,372,333) 2,372,333 - 6,929,552 34.24%
6/30/2020 (2,719,034) 2,719,034 - 7,436,975 36.56%
6/30/2021 (2,958,871) 2,958,871 - 7,257,288 40.77%
6/30/2022 (2,955,772) 2,955,772 - 7,919,478 37.32%
Notes to Schedule:

Change in benefit terms: None
* Measurement date 6/30/2014 (fiscal year 2015) was the first year of implementation. Additional years will be presented as information becomes available.

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City of Santa Paula
Notes to Required Supplementary Information
June 30, 2022
-72-
1) BUDGETARY INFORMATION
Budgeted revenue and expenditure amounts shown represent the City’s originally adopted legal budget adjusted for unanticipated revenues and appropriations during the course of the fiscal year. Budget amounts, as adjusted, reported for the governmental funds of the City are adopted on a basis consistent with generally accepted accounting principles (GAAP).

All appropriations lapse at the end of the fiscal year to the extent that they have not been expended. Lease contracts and projects entered into by the City are subject to annual review by the City Council; hence, they legally are one-year contracts with an option for renewal for another fiscal year.

The City Council has the responsibility for adoption of the City’s Budget. Budgets are adopted for the General Fund, Special Revenue Funds, Debt Service Funds and Capital Projects Funds. From the effective date of the budget, the amounts stated as proposed expenditures become appropriations to the various City departments. The City Council may amend the budget by motion during each fiscal year. The City Manager is authorized to transfer funds from one major expenditure category to another within the same department and fund. Any revisions that alter the total expenditures of any fund must be approved by City Council. The level at which expenditures may not legally exceed appropriations is therefore established at the department level. Budgeted amounts may be transferred between programs with City Manager approval.

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City of Santa Paula
Non-Major Governmental Funds
-73-
Special Revenue Funds
Mobile Home Rent Review Fund - This fund is used to administer the Mobile Home Rent Review Program.

Local Transportation TDA Fund - This fund is to be used for local streets and roads.

CA Oil Museum Fund - Revenues from fundraising, membership and interest from endowment.

Used to cover operating costs of museum.

Hillsborough Open Space Assessment Fund - This fund is used to account for the Maintenance Assessment District for Tract #4486-1 (except parcels D & E) and Tract #4486-2.

Local Transportation TDA Article 3 Fund - This fund is set aside for bicycle and pedestrian facilities.

NPDES Storm Water Quality Fund - This fund is only for use in relation to storm water quality.

Beverage Container Recycling Fund - This fund is used to account for the recycling program state grants.

Cable Television Fund - This fund is used to account for cable television fees.

Stormwater Program Fund - This fund is used to account for storm water program activities.

GHAD-GEO Hazardous Abatement District Fund - This fund is used to account for the Geological Hazard Abatement District #5606.

State Gas Tax Special Revenue Fund - This fund accounts for the State Gas Tax funds that are restricted for street related projects.

Capital Project Funds
Facilities Capital Fund - This fund is used to account for developers fees collected to be used for facility expansion projects.

Inclusionary Housing Ordinance Improvement - This fund is used to account for developers fees collected to be used for future Inclusionary Housing Ordinance Implementation Programs.

Traffic Impact Fees Fund - This fund is used to account for developers fees collected to be used for traffic related projects. This fund is legally restricted to capital acquisition or related debt service.

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City of Santa Paula
Non-Major Governmental Funds
-74-
Capital Project Funds (continued)
Air Quality Impact Fee - This fund is used to account for developers fees collected to be used for air quality management.

Park Bond Grant Fund - This fund is used to account for grant funds received to be used for parks.

Federal STP Grant - This fund is used to account for grant funds restricted for street purposes.

Permanent Funds
Community Center Endowment Fund - This fund is used to account for principal trust amounts received and related investment earnings. Investment earnings may be used to support the Center.

Museum Endowment Fund - This fund is used to account for principal trust amounts received and related investment earnings. Investment earnings may be used to support the Museum.

Harding Park Trust Fund - This fund is used to account for principal trust amounts received and related investment earnings. Investment earnings may be used to support the Harding Park Trust Fund subject to the approval of the Harding Park Advisory Committee.

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City of Santa Paula
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2022
-75-
Special Capital Permanent
Revenue Projects Funds Total
ASSETS
Cash and investments 2,946,864 $ 8,487,645 $ 1,039,964 $ 12,474,473 $ Receivables
Accounts 285,031 19,647 2,019 306,697
Advances to other funds - 14,001 - 14,001
Total Assets 3,231,895 $ 8,521,293 $ 1,041,983 $ 12,795,171 $

LIABILITIES
Accounts payable and accrued
liabilities 166,641 $ 1,320 $ 28,077 $ 196,038 $
Due to other funds 172,378 119,340 - 291,718
Advances from other funds - - 14,001 14,001
Total Liabilities 339,019 120,660 42,078 501,757

FUND BALANCE
Nonspendable - - 823,191 823,191
Restricted 3,048,160 8,519,679 176,714 11,744,553
Unassigned (155,284) (119,046) (274,330) -
Total Fund Balances 2,892,876 8,400,633 999,905 12,293,414 Total Liabilities, Deferred Inflows of
Resources and Fund Balances 3,231,895 $ $ 8,521,293 $ 1,041,983 $ 12,795,171

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258
City of Santa Paula
Combining Balance Sheet
Nonmajor Special Revenue Funds
June 30, 2022
-76-
Local Hillsborough
Mobile Home Transportation CA Oil Open Space
Rent Review TDA Museum Assessment
ASSETS
Cash and investments $ 644 $ 547,331 $ 102 $ 22,375
Receivables
Accounts - 1,619 - 54
Total Assets $ 644 $ 548,950 $ 102 $ 22,429

LIABILITIES
Accounts payable and accrued
liabilities $ - $ 14,013 $ 9 $ 350
Due to other funds 100,396 - 15,940 -
Total Liabilities 100,396 14,013 15,949 350

FUND BALANCE
Restricted - 534,937 - 22,079
Unassigned (99,752) - (15,847) -
Total Fund Balances (99,752) 534,937 (15,847) 22,079
Total Liabilities, Deferred Inflows of
Resources and Fund Balances $ 644 $ 548,950 $ 102 $ 22,429

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(Continued)
-77-
Local NPDES Beverage
Transportation Storm Water Container Cable
TDA Article 3 Quality Recycling Television
$ 4,666 $ 235 $ 61,851 $ 160,223
- - 81 15,630
$ 4,666 $ 235 $ 61,932 $ 175,853
$ - $ 3,463 $ - $ 3
- 36,457 - -
- 39,920 - 3
4,666 - 61,932 175,850
- (39,685) - -
4,666 (39,685) 61,932 175,850
$ 4,666 $ 235 $ 61,932 $ 175,853

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City of Santa Paula
Combining Balance Sheet
Nonmajor Special Revenue Funds
June 30, 2022
-78-

GHAD-GEO
Stormwater Hazardous State Gas
Program Abatement Dist. Tax Total
ASSETS
Cash and investments 126 $ 542,601 $ 1,606,710 $ 2,946,864 $ Receivables
Accounts 86,568 1,276 179,803 285,031
Total Assets 86,694 $ 543,877 $ 1,786,513 $ 3,231,895 $

LIABILITIES
Accounts payable and accrued
liabilities 17,573 $ 3,794 $ 127,436 $ 166,641 $
Due to other funds 19,585 - - 172,378
Total Liabilities 37,158 3,794 127,436 339,019

FUND BALANCE
Restricted 49,536 540,083 1,659,077 3,048,160
Unassigned - - - (155,284)
Total Fund Balances 49,536 540,083 1,659,077 2,892,876
Total Liabilities, Deferred Inflows of
Resources and Fund Balances 86,694 $ 543,877 $ 1,786,513 $ 3,231,895 $

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City of Santa Paula
Combining Balance Sheet
Nonmajor Capital Projects Funds
June 30, 2022
-79-
Facilities Inclusionary
Capital Housing Traffic Air Quality
Projects Ordinance Impact Fees Impact Fee
ASSETS
Cash and investments 5,440,804 $ 2,131,506 $ 912,452 $ 2,121 $ Receivables:

Accounts 12,678 4,869 2,095 5
Advances to other funds 14,001 - - -
Total Assets $ 5,467,483 $ 2,136,375 $ 914,547 $ 2,126

LIABILITIES
Accounts payable and accrued
liabilities $ 852 -$ -$ $ -
Due to other funds - - - -
Total Liabilities 852 - - -

FUND BALANCE
Restricted 5,466,631 2,136,375 914,547 2,126
Unassigned - - - -
Total Fund Balances 5,466,631 2,136,375 914,547 2,126
Total Liabilities, Deferred Inflows of
Resources and Fund Balances $ 5,467,483 $ 2,136,375 $ 914,547 $ 2,126

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262

-80-
Park Federal
Bond Grant STP Grant Total
$ 7 $ 755 $ 8,487,645
- - 19,647
- - 14,001
$ 7 $ 755 $ 8,521,293
$ 468 $ - $ 1,320
1,641 117,699 119,340
2,109 117,699 120,660
- - 8,519,679
(2,102) (116,944) (119,046)
(2,102) (116,944) 8,400,633
$ 7 $ 755 $ 8,521,293

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263
City of Santa Paula
Combining Balance Sheet
Nonmajor Permanent Funds
June 30, 2022
-81-
Community
Center Museum Harding
Endowment Endowment Park Trust Total
ASSETS
Cash and investments 603,763 $ 217,523 $ 218,678 $ 1,039,964 $ Receivables
Accounts 1,400 505 114 2,019
Total Assets 605,163 $ 218,028 $ 218,792 $ 1,041,983 $

LIABILITIES
Accounts payable and accrued
liabilities - $ - $ 28,077 $ 28,077 $
Advances from other funds - - 14,001 14,001
Total Liabilities - - 42,078 42,078

FUND BALANCE
Nonspendable 605,163 218,028 823,191 -
Restricted - - 176,714 176,714
Total Fund Balances 605,163 218,028 176,714 999,905
Total Liabilities and Fund Balances $ 605,163 $ 218,028 $ 218,792 $ 1,041,983

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City of Santa Paula
Combining Statement of Revenues, Expenditures and Changes in Fund Balance Nonmajor Governmental Funds
For the Year Ended June 30, 2022
-82-
Special Capital Permanent
Revenue Projects Funds Total

REVENUES
Taxes 40,457 $ 1,983,533 $ - $ 2,023,990 $
Intergovernmental 2,186,820 35,911 - 2,222,731
Charges for services 384,177 1,172,888 178,564 1,735,629 Investment earnings (3,895) (28,893) (3,403) (36,191)
Other revenues - - 5,952.00 5,952
Total Revenues 2,607,559 3,163,439 181,113 5,952,111

EXPENDITURES
General government 25,780 112,582 - 138,362
Community services 7,994 44,608 124,261 176,863
Financial services 21,941 - - 21,941
Public works 1,714,120 70,575 26,932 1,811,627
Total Expenditures 1,769,835 227,765 151,193 2,148,793
Excess (Deficiency) of Revenues
Over Expenditures 837,724 2,935,674 29,920 3,803,318

OTHER FINANCING SOURCES (USES)
Transfers in 387,339 - - 387,339
Transfer out (338,465) - (338,465) -
Total Other Financing
Sources (Uses) 48,874 - - 48,874
Net Change in Fund Balances 886,598 2,935,674 29,920 3,852,192 Fund Balances, Beginning 2,006,278 5,464,959 969,985 8,441,222 Fund Balances, Ending $ 2,892,876 $ 8,400,633 $ 999,905 $ 12,293,414

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266
City of Santa Paula
Combining Statement of Revenues, Expenditures and Changes in Fund Balance Nonmajor Special Revenue Funds
For the Year Ended June 30, 2022
-83-
Local Hillsborough
Mobile Home Transportation CA Oil Open Space
Rent Review TDA Museum Assessment

REVENUES
Taxes - $ $ - $ - $ 4,647
Intergovernmental - 777,760 - -
Charges for services 17,744 - 500 -
Investment earnings 644 (1,787) 102 5,535
Total Revenues 18,388 775,973 602 10,182

EXPENDITURES
General government 3,648 - - -
Community services - - - -
Financial services - - - -
Public works - 89,391 - 4,370
Total Expenditures 3,648 89,391 - 4,370
Excess (Deficiency) of Revenues
Over Expenditures 14,740 686,582 602 5,812

OTHER FINANCING SOURCES (USES)
Transfers in - - - -
Transfer out - (338,465) - -
Total Other Financing
Sources (Uses) - (338,465) - -
Net Change in Fund Balances 14,740 348,117 602 5,812
Fund Balances (Deficit), Beginning (114,492) 186,820 (16,449) 16,267 Fund Balances (Deficit), Ending $ (99,752) $ 534,937 $ (15,847) $ 22,079

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267

-84-
Local NPDES Beverage Cable
Transportation Storm Water Container Television
TDA Article 3 Quality Recycling Fund
$ - $ 35,810 $ - $ -
3,457 - 52,210 -
- - - 59,825
(30) 235 (328) (530)
3,427 36,045 51,882 59,295
- - - 22,132
- - - 7,994
- - - -
- 47,677 - -
- 47,677 - 30,126
3,427 (11,632) 51,882 29,169
- - - -
- - - -
- - - -
3,427 (11,632) 51,882 29,169
1,239 (28,053) 10,050 146,681
$ 4,666 $ (39,685) $ 61,932 $ 175,850

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City of Santa Paula
Combining Statement of Revenues, Expenditures and Changes in Fund Balance Nonmajor Special Revenue Funds
For the Year Ended June 30, 2022
-85-
Stormwater GHAD-GEO
Program Hazardous State
Fund Abatement Dist. Gas Tax Total

REVENUES
Taxes - $ - $ - $ 40,457 $
Intergovernmental - - 1,353,393 2,186,820
Charges for services 193,190 88,717 24,201 384,177
Investment earnings 134 (1,763) (6,107) (3,895)
Total Revenues 193,324 86,954 1,371,487 2,607,559

EXPENDITURES
General government - - - 25,780
Community services - - - 7,994
Financial services - - 21,941 21,941
Public works 173,484 24,769 1,374,429 1,714,120
Total Expenditures 173,484 24,769 1,396,370 1,769,835
Excess (Deficiency) of Revenues
Over Expenditures 19,840 62,185 (24,883) 837,724

OTHER FINANCING SOURCES (USES)
Transfers in - - 387,339 387,339
Transfer out - - - (338,465)
Total Other Financing
Sources (Uses) - - 387,339 48,874
Net Change in Fund Balances 19,840 62,185 362,456 886,598 Fund Balances, Beginning 29,696 477,898 1,296,621 2,006,278 Fund Balances, Ending 49,536 $ 540,083 $ 1,659,077 $ 2,892,876 $

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City of Santa Paula
Combining Statement of Revenues, Expenditures and Changes in Fund Balance Nonmajor Capital Project Funds
For the Year Ended June 30, 2022
-86-
Facilities Inclusionary
Capital Housing Traffic Air Quality
Projects Ordinance Impact Fees Impact Fee

REVENUES
Taxes 1,796,920 $ - $ 186,613 $ $ -
Intergovernmental - - - -
Charges for services - 1,172,888 - -
Investment earnings (18,648) (7,866) (3,134) (7)
Total Revenues 1,778,272 1,165,022 183,479 (7)

EXPENDITURES
General government 67,541 - 45,041 -
Community services 214 44,394 - -
Public works 33,901 - - -
Total Expenditures 101,656 44,394 45,041 -
Excess (Deficiency) of Revenues
Over Expenditures 1,676,616 1,120,628 138,438 (7)
Net Change in Fund Balances 1,676,616 1,120,628 138,438 (7) Fund Balances (Deficit), Beginning 3,790,015 1,015,747 776,109 2,133 Fund Balances (Deficit), Ending $ 5,466,631 $ 2,136,375 $ 914,547 $ 2,126

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270

-87-
Park Federal
Bond Grant STP Grant Total
$ - $ - $ 1,983,533
- 35,911 35,911
- - 1,172,888
7 755 (28,893)
7 36,666 3,163,439
- - 112,582
- - 44,608
1,026 35,648 70,575
1,026 35,648 227,765
(1,019) 1,018 2,935,674
(1,019) 1,018 2,935,674
(1,083) (117,962) 5,464,959
$ (2,102) $ (116,944) $ 8,400,633

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City of Santa Paula
Combining Statement of Revenues, Expenditures and Changes in Fund Balance Nonmajor Permanent Funds
For the Year Ended June 30, 2022
-88-
Community
Center Museum Harding
Endowment Endowment Park Trust Total

REVENUES
Charges for services - $ -$ $ 178,564 $ 178,564
Investment earnings (1,889) (678) (836) (3,403)
Other revenues 5,952 - - 5,952
Total Revenues 4,063 (678) 177,728 181,113

EXPENDITURES
Community services - - 124,261 124,261
Public works - - 26,932 26,932
Total Expenditures - - 151,193 151,193
Excess (Deficiency) of Revenues
Over Expenditures 4,063 (678) 26,535 29,920
Net Change in Fund Balances 4,063 (678) 26,535 29,920
Fund Balances, Beginning 601,100 218,706 150,179 969,985 Fund Balances, Ending $ 605,163 $ 218,028 $ 176,714 $ 999,905

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To: Honorable Mayor and Members of the City Council
From: Jonathan Royas, Deputy City Manager
Subject: 2023-2025 CITY COUNCIL STRATEGIC PLAN PROGRESS REPORT Date: January 24, 2024
Agenda Item: 10.A

CITY OF SANTA PAULA

MEMORANDUM
RECOMMENDATION:

Staff recommends City Council:

1. Receive and file a six-month progress report on the Council's Strategic Plan and direct staff to take additional or related action that may be desirable.

Presented by: Jonathan Royas, Deputy City Manager
BACKGROUND:

On June 21, 2023, City Council adopted a new 2-Year Strategic Plan after a thorough and extensive process which included feedback and input from City Council, executive staff and the public via several public workshops. The purpose of this endeavor was to identify community challenges and develop a timeline to solve these opportunities as defined by the Council and City staff.

The 2023-2025 Strategic Plan (the "Plan") contains the following key components:

Vision Statement
The City of Santa Paula is an innovative and collaborative organization delivering exceptional services that enhance a sustainable and vibrant community where residents, families, and businesses can thrive.

Mission Statement
The City of Santa Paula is committed to providing and continually creating a safe, sustainable, and innovative place to live, work and thrive.

Core Values
Innovation - We consistently apply better solutions and approaches to improve how we work with each other and serve our community.
273
Collaboration/Teamwork - We are active and connected individuals and teams working together to advance our goals and achieve success.

Diversity/Inclusivity - We are an organization that embraces the range of human differences and points of view.

Accountability - We value the ability of our staff and organization to honor our commitments to our community and each other.

Integrity - We are consistently open, honest, ethical and genuine.

Equity - We champion fairness and inclusivity for all.

Communication - We value open, transparent dialogue, and fostering an environment where ideas, concerns, and feedback are freely exchanged with residents and organizations.

What does a thriving Santa Paula look like to you in two years? Community Engagement / Economic Prosperity / Community Services / Tourism Seven Categories with Goals
A. Arts, Culture, and Entertainment
Goal: Become a regional leader of the arts, culture, and entertainment that accurately represents our history and core values.

B. Economic Development
Goal: Enhance the economic vitality of the community through measures targeted towards development and business retention and expansion and attraction, resulting in diverse housing options, increased revenue generation, job creation, and a businessfriendly community.

C. Infrastructure, Transportation & Mobility
Goal: Maintain and develop the City's infrastructure to be safe, sustainable, innovative, and cost-efficient.

D. Connected and Healthy Community
Goal: Educate and engage residents and businesses about programs, initiatives and foster regional partnerships that create a safe and healthy community to live, work and thrive.

E. Public Safety & Emergency Preparedness
Goal: Create an environment within the City in which our residents feel safe and which promotes the City as a location of choice for living, working, visiting and recreating.

F. Community Vitality
274
Goal: Provide the residents of Santa Paula with sustainable resources and programs to make this a great place to live and grow.

G. Operational Excellence
Goal: Provide excellent service to the community in a cost-effective manner with an engaged workforce with a focus on continuous improvement and outstanding customer service.

Within these seven categories are 52 objectives, some of which overlap between different strategic plan categories. It should also be noted that numerous Public Safety objectives may need to be delayed due to staff limitations. The Strategic Plan was adopted at a time when the Police Department had a full compliment of staff, thus until such time as staffing is restored, many of these objectives in the Strategic Plan will be of lower priority.

ANALYSIS:

The 2023-2025 City Council Strategic Plan Progress Report (Exhibit A - City Council Strategic Plan Progress Report) identifies progress made in the past six months towards the seven overarching categories and the 52 objectives contained within.

Milestone Metrics
Each objective within the Plan contains defined metrics which are used to gauge staffs efforts towards completion of the objectives. As notated in Exhibit A, the "Milestone" column assists Council and the public in tracking the progress of each objective. A key is provided below and also displayed on the top of Exhibit A.
0 - No progress
1 - Discussed but no action taken (staff not actively working on) 2 - Planned/Scheduled - Quarter & Year
3 - On Track - Date or Quarter
4 - Near Completion - Date
5 - Completed
Despite unprecedented events last year, staffing changes and new initiatives which have required additional staff time this year, staff has completed 2 objectives and made progress on 37 objectives, with notable success in the following areas:

Completed Strategic Plan Objectives
E. Public Safety & Emergency Preparedness
Objective #6 - SPPD Wellness - Expand wellness options for employees such as peer support counseling services, and mindfulness and resiliency training.

All sworn personnel have been CIT trained. Additionally, a 3-person peer 275
support team was established and trained in 2023 and have been deployed on a few occasions. The City also received a public safety wellness grant of $25,000 which will go toward enhanced training and counseling support.

G. Operational Excellence
Objective # 7 - Wellness Options - Expand Employee Wellness options. Wellness options are in place such as the new Wellness & Fitness Benefit and employee health events such as the Lunch & Learn Nutrition Event conducted in late 2023. Staff will continue to work with HR to identify additional wellness options for employees.

In Progress Highlights
A. Arts, Culture & Entertainment
Objective #1 - Public Arts/Murals - Support public art and the mural program and pursue methods to increase funding. (General Plan EDD 4.c)

1. Completed mural at Harding Park; 2 additional murals in the works (1 for fire memorial, 1 for Community Center); 3. Arte & Cultura Collective won $1500 grant award for "Bursting with Color" Downtown Art Exhibit, which will be back on display soon. Staff is anticipating upcoming County art grant opportunity.

Objective #2 - Cultural Arts/Tourism - Establish and support a Cultural Arts and a Tourism Council.

1. Arte & Cultura Collective has formed two committees (Steering & Art Advisory). Collective will have a meeting before the end of the month to review Mission/Vision statement and nominate a board of directors to help move incorporation as a 501(c)3 forward. 3. Arts Advisory portion of Collective will work with staff regarding future murals. 6. Staff regularly adds all local free events to the City website calendar which has been upgraded to include all events. Staff will return to Council in winter/spring with an update on the Arte & Cultura Collective.

B. Economic Development
Objective #2 - Business Communications - Create a positive business environment by increasing communications and partnerships with new and existing businesses.

In 2023 five Business Roundtables were conducted with roughly 30+ attendees per event; Staff also collaborated with the Chamber to provide targeted business education programs as follows: two workshops with WEV, two with EDC, and three with SCORE. Additionally, our Fellows have researched two Digital Email Marketing & Automation Software vendors, Mail Chimp and Constant Contact, and also explored five other software vendors.

Staff will bring CRM options to Council for discussion in March/April 2024.

Objective #8 - Annexation Opportunities - Review of city boundaries for annexation opportunities.

The review and approval of the Business West Park annexation has been completed and will be filed with LAFCo in February. Work continues on other properties that have been identified as viable. Will continue to work with the 276
County and LAFCo to address annexation.

C. Infrastructure, Transportation & Mobility
Objective #7 - Bike Master Plan - Create a Class I and II Bike Trail Master Plan and work towards expansion of our existing trails.

Council has set aside $50,000 in American Rescue Plan Act (ARPA) funding for this effort. Additionally, the City is the recipient of $1.48M in funds to construct a bike trail extension on the east and west ends of the existing trail.

Staff has prepared a draft RFP for this effort which staff anticipates will be released in Q2. Staff is also exploring the possibility of including a Bike Master Plan as a part of the Bike Trail RFP process.

D. Connected and Healthy Community
Objective #2 - CRM Database - Explore options for CRM database to enhance communications with residents.

Staff conducted research on six CRM software options: GovPilot, GOGov, Civic Track, Comcate, Mail Chimp, and Constant Contact. The findings will be presented to the ad hoc Communications Committee for further review and then brought to Council in March/April 2024 for further consideration.

E. Public Safety & Emergency Preparedness
Objective #4 - SPPD Facility Upgrades - Pursue funding to complete all Police facility upgrades.

Security fencing and Phase I of building remodel will begin 1st quarter of 2024.

F. Community Vitality
Objective #1 - Volunteerism - Expand, support and connect volunteers, or those with specialized skills, with local opportunities to make a difference in Santa Paula.

Volunteer software has been purchased and is being utilized. This will help with managing ongoing volunteer opportunities and tracking hours. Staff is working on expanding opportunities and getting residents signed up.

Objective #3 - Fagan Barranca Park Master Plan - Pursue funding and create a Master Restoration Plan.

1. A local landscape architect has been hired and is working on a conceptual design. Staff plans to hold a number of community input events over the next 6 - 8 months.

Objective #10 - Union Oil Building - Pursue programing and public use options for the Union Oil Building.

Three community outreach meetings were held on utilization of the building including a specific youth focused workshop to solicit input. The ad hoc committee met and helped draft an RFP which was reviewed by Council.

Building ownership has been officially transferred to the City and an RFP is currently out regarding building use and programming. 4. RFP results will be 277
presented to Council April/May 2024.

G. Operational Excellence
Objective #8 - Housing/Homeless Position - Explore opportunities to establish a Housing/Homeless Services position who will pursue partnerships and options to understand, address, and meet the needs of the unhoused including behavioral support.

Staff, with Council's support, has completed research and budgeting to create a new position to address housing and homelessness in Santa Paula and have recently hired a new Management Analyst who began work on January 16, 2024. Job duties assignments and goals are being developed as a part of position orientation. Additionally, the City recently purchased a triangle shaped parcel of property across from SPIRIT of Santa Paula's Harvard shelter, which could assist in establishing a future permanent facility for transitional housing. Lastly, the homeless annual point in time count is taking place this month.

STRATEGIC PLAN:

Progress in all items contained in this report will continue to advance City Council's objectives.

FISCAL IMPACTS:

There are no direct costs associated with Strategic categories or goals. Specific objectives contained within the plan may have direct fiscal impacts, which have either been incorporated into the FY 2023-25 budget, may require additional funding sources or will need to be approved by Council once a budget has been developed and a project is ready for Council’s authorization.

PERSONNEL IMPACTS:

It is important to understand that the vast majority of time spent by City staff is dedicated to mandated, routine and/or responsive tasks. Especially in Santa Paula where staff ratios are extremely burdened and there is limited ability to pursue new initiatives, the capacity to complete the objectives contained in the Strategic Goals may be constrained.

OPTIONS:

1. Amend the plan and/or provide further direction to staff.

2. Rescind the plan.

ATTACHMENTS:

Exhibit A - City Council Strategic Plan Progress Report.pdf 278

EXHIBIT A - CITY COUNCIL

STRATEGIC PLAN

PROGRESS REPORT
279
0 - No Progress 3 - On Track - Date or Quarter
1 - Discussed but no action taken (staff not actively
working on) 4 - Near Completion - Date
2 - Planned/Scheduled - Quarter & Year 5 - Completed
Cat
ego
# Dept.
1 Dept. 2 Dept. 3 Objective Budget Impact
Metrics Milesto
ne
Update as of Jan 24, 2024
A 1 CED Admin P&R Public Arts/Murals - Support public art and the mural program and pursue
methods to increase funding. (General
Plan EDD 4.c)
$5,000/mura
l + Staff Time

1. Help facilitate production of at least one new mural per calendar year

2. Explore policies or programs which would provide a
"percent for the arts".

3. Number of grant applications vs. the number of grants won for Arts, Culture, and Entertainment.
3 - Q3

1. Completed mural at Harding Park; 2 additional
murals in the works (1 for fire memorial, 1 for
Community Center); 3. Arte & Cultura Collective won
$1500 grant award for Bursting with Color Downtown
Art Exhibit which will be back on display soon. Staff is anticipating upcoming County art grant opportunity.

A 2 CED Admin Cultural Arts/Tourism - Establish and
support a Cultural Arts and a Tourism
Council.
$10,000 +
Staff Time

1. Establish an Arts Council.

2. Promotion of arts/history/culture.

3. Number of artists and projects per year.

4. Number of digital and print materials distributed.

5. Number of events.

6. Establish monthly calendar of events.

7. Support or obtain funding for each entity. 3 - Q2

1. Arte & Cultura Collective has formed two
committees (Steering & Art Advisory). Collective will
have a meeting before the end of the month to review
Mission/Vision statement and nominate a board of
directors to help move incorporation forward. 3. Arts
Advisory portion of Collective will work with staff
regarding future murals. 6. Staff regularly adds all local free events to the City website calendar which has
been upgraded to include all events. Staff will return to Council in winter/spring with an update on the Arte &
Cultura Collective.

A 3 CED Admin QR Codes - Pursue the integration of
technology with QR codes for historical
buildings/murals.
$3,500 +
Staff Time

1. Number of plaques installed and number of QR codes
created for existing points of interest.

2. Creation of a dedicated website for historical
buildings/murals.
2 ~
2024

1. Fellows have begun working with Chamber on this
effort but before QR codes and plaques can be
created, #2 needs to occur. 2. Chamber built out a
dedicated phone app for the County 150th anniversary
for the murals but that data needs to be transferred to a webpage.

A 4 CED *Historic Resources - Adopt and
implement standards and guidelines for
new development, alterations to existing
structures, and preservation of historic
resources within historic districts. (GP
ECR 4.c)
Funded
through
General Plan
Fund

1. Update the municipal code to include standards for
historic preservation.
2 ~
2024
Updates will occur in concert with the comprehensive
code update. Future discussion regarding the
expansion of Mills Act ordinance mid 2024.

Strategic Plan 2023-2025
A. Arts, Culture and Entertainment
B. Economic Development
Milestone
Metrics Key
280
B 1 CED Financ
e
Admin Revenue Opportunities - Actively pursue
revenue opportunities to increase the
City's revenue base.

Staff Time 1. Bring a list of options to Council for review.

2. Move forward on any initiatives Council supports.
3 - Q1
In May 2023 staff provided Council a presentation on
potential revenue opportunities to explore. Based on
that conversation, Council set aside $50K to research
potential opportunities further. In Sept. 2023, with
Council support, staff engaged LEG to conduct a
community survey further explore options. Those
results will be discussed and provided to Council in the next month.

B 2 CED Admin Business Communications - Create a
positive business environment by
increasing communications and
partnerships with new and existing
businesses.
$1000 + Staff
Time

1. Number of business roundtables per year.

2. Number of attendees on average per event.

3. Number of email blasts, newsletters, etc.

4. Development of targeted business education programs
through EDC, WEV, and SCORE.

5. Explore CRM software system.
3 - Q2

1. 2023 - five Business Roundtables; 2. 30+ per event;

4. 2023 - two workshops with WEV, two with EDC, &
three with SCORE. 5. Fellow has explored two Digital
Email Marketing & Automation Software's, Mail Chip
and Constant Contact. Additionally explored 5 other
software's. Staff will bring CRM options to Council for discussion in March/April 2024.

B 3 CED PW P&R *Downtown Beautification - Develop
guidelines which address architecture,
landscaping, streets, and hardscape
elements within the Downtown and
historic districts. (GP ECR 4.c)
$500,000 +
Staff Time

1. Develop a schedule for completion of suggested
improvements, based on priority, and present periodic
updates to the Property Business Improvement District
(PBID) and City Council.

2. Schedule, milestones, projects (number of facades
improved, number of wayfinding signs installed, etc.) 3 - Q3

1. Downtown trash receptacle project underway; PBID
has reviewed and made recommendations; next step is
internal discussion before report to Council for
contract award in March/April 2024. 2. Downtown tree
up lighting project near completion (# lights installed) with clear lens testing in progress; w/10ayfinding
projecting underway; Facade improvement program
approved by Council on 1/10/24 with anticipated roll
out June/July 2024.

B 4 CED Admin Marketing - Partner with the HVTB, PBID,
Chamber of Commerce, and local
transportation providers (rail and airport)
to work collectively to advertise and
market Santa Paula to increase tourism.
$10,000/year
+ Staff Time

1. Explore utilizing data and software analytics along with business-related data to capture business-related analytics.

2. Measured by Transient Occupancy Tax (TOT) increase.
3 - Q1

1. Staff has contracted with Placer.AI to obtain data
analytics. Former fellow setup key points of interest in Santa Paula in the system. Staff needs to better
understand how to utilize and interpret the data from
the software to help with informed decision making
related to marketing.

B 5 CED PW Navigational Signage - Attract "passthrough" traffic by improving and implementing new wayfinding or
"gateway" signage throughout the City
and SR126 to promote business and
tourist opportunities.
$100,000 for
designs,
implementati
on costs TBD
(multi-year
process)

1. By Spring 2024 have a comprehensive wayfinding
program defined with critical locations installed.

2. Expand process as much as budget allows.
3 - Q2

1. Wayfinding project is well underway and concept
plans will be reviewed by the Wayfinding Committee
with recommendations to City Council 2nd quarter
2024.

B 6 CED *Business Attraction - Prepare an
economic base study to identify business
sectors with greatest potential for
expansion in Santa Paula and implement
a business retention, marketing and
recruitment program to attract those
businesses. (GP pg.32 EDD1.b)
$26,000 +
Staff Time

1. Contract out data analytics capture in 2023 to determine opportunities for retention and attraction based on data related to leakage and the city's employment base.

2. Explore rural retail opportunities for growth.

3. Identify retail deficits and conduct outreach to
representatives of potential operators.

4. Assemble metrics to better demonstrate the city's
marketability.

5. Utilize data analytics capture software for informed decision making.
2 - Q2

1. Placer.AI software in place. 5. Data analytics and
cursory review of data has occurred. Plans to present
initial data to city Council 2nd quarter 2024.
281
B 7 CED Retail Vacancy Standards - Explore
options for addressing empty storefronts.

Staff Time 1. Develop strategies related to property owner outreach and education.

2. Potentially modify muni-code to require active uses on main floor CBD properties.

3. Number of reduced empty storefronts Year over Year.
2 ~
2024

1. Former fellow worked with the Chamber to create a
detailed downtown PBID database with detailed
property owner/tenant information to utilize with
outreach efforts. Initial efforts have led to more PBID participation at monthly meetings.

B 8 CED Annexation Opportunities - Review of
city boundaries for annexation
opportunities.

Staff Time 1. Collaboration with property owners, county and LAFCo to identify viable sites and determine successful
implementation strategies.
4 - Q2
The review and approval of the Business West Park
annexation has been completed and will be filed with
LAFCo in February. Work continues on other properties
that have been identified as viable. Will continue to
work with the County and LAFCo to address
annexation.

C 1 PW Streets – Work to maximize funding
going to streets
Staff Time,
Various
sources
including:

CIP, Measure
T, Solid
Waste,
American
Rescue Plan,
Federal and
State Grants

1. Staff will provide 5-Year Pavement Management Plan
updates to Council on an annual basis. 2.

Review of Pavement Condition Index (PCI) changes yearover-year. 3 Staff is will be presenting to Council during a February workshop options and costs for improving all streets.

C 2 P&R PW CED City Facilities Master Plans - Pursue long term options and Master Plans for the
Corporate Yard/Water and City Hall
Campus improvements.
$50,000 per
facility

1. Hire a consultant to work on creating a Corporate
Yard/Water and City Hall Campus Master Plan.

2. Have draft report / plan presented to an ad hoc
committee or Council.
0 No budget identified at this time.

C 3 PW P&R Green Initiatives - Explore funding
opportunities and partnerships to
implement Energy Efficiency projects,
solar, and electric vehicle (EV)
technologies.
$5000 to
apply for
grants + Staff
Time

1. Complete lighting project (Phase 1).

2. Apply for grant funding opportunities.

3. Explore and present findings related to solar options to Council.

4. Explore and present findings related to EV options to Council.
2 - Q4

2. Research on Steckel Plant roof structural analysis for dual use of proposed roof panel openings for water
infrastructure maintenance access and concurrent
solar panel installations benefiting the Water
Enterprise. Funding source is $3M from restructured
bond proceeds. Seeking EV grant funding assistance
from MM consultant.

C 4 CED PW *Downtown Lighting/Safety - Improve
and maintain lighting and safety
measures in alleys and parking lots within
the downtown keeping in mind historical
aesthetics. (GP EDD 4.c.)
TBD 1. Number of lights identified, procured, and installed. 2 - Q3
Staff is currently work on a Main St. decorative lighting project.

C. Infrastructure, Transportation & Mobility
282
C 5 P&R *P&R Funding - Explore revenue options
for parks, greenways and public spaces
including funding for park and recreation
facilities and programs. (GP PSU 6.7)
$40,000 -
$60,000

1. Hire a consultant to explore feasibility and process of creating a park district and explore potential revenue
options.
0 No budget identified at this time. Council prioritized other revenue options to research at this time.

C 6 P&R CED Fire Memorial Building - Explore
feasibility of future interior use for the
historic Fire Memorial Building.

Staff Time 1. Obtain cost estimates for needed building improvements and costs of use alternatives.
0 C 7 PW CED Bike Master Plan - Create a Class I and II Bike Trail Master Plan and work towards
expansion of our existing trails.

Some
Funding
through
grants + Staff
Time. Need
more $

1. Progress on master plan (milestones).

2. Total number of miles of Class I/II bike lanes created. 2-Q2
Staff will explore the possibility of making this a part of the Bike Trail RFP process.

D 1 CED Admin Community Education - Provide
community education about City
projects, processes, & permits.
$1,500 +
Staff Time

1. By 3rd quarter, activate vacant space on Main Street to provide periodic town hall/remote city hall outreach for community engagement.

2. Measure the frequency and types of events hosted.

3. Number of "Did you know" campaigns created.

4. Number of in person events conducted on a particular topic.
3 - Q4

1. Activated office in Clock Tower building downtown
for City/PBID/Chamber fellow to engage with
downtown businesses. #2 & #4 - Staff hosted three
community outreach events related to the Union Oil
Building future use options. #3 - Fellows have created
several social media "Did You Know" posts on items
such as railroad crossing horns, ACP programs, LIHWAP
water utility assistance, ALRB farmworker rights,
partnered with WEV/SCORE/EDC to promote ways to
drive business vitality.

D 2 Admin CRM Database - Explore options for CRM
database to enhance communications
with residents.
$ TBD + Staff
Time

1. Research options, software solutions and budget
requirements to address communications needs with
residents and business owners.

2. Present findings to Council.
3 - Q2

1. Staff has researched a total of six CRM Software's:

GovPilot, GOGov, Civic Track, Comcate, Mail Chimp,
and Constant Contact. Staff will return in March/April
2024 to present findings.

D 3 P&R Youth Facilities - Explore expansion of
youth facilities and resources.
$20,000 -
$40,000

1. Hire an architect to provide a building design and
estimated associated construction costs.

2. Report findings back to Council. 3 - Q4
Architect from RWC met with ACT participants. A draft
conceptual design is being developed. Staff and
architect will meet with ACT participants again first
quarter of 2024. Future community workshops will be
organized to gain additional input from Santa Paula
youth.

D 4 Admin Smoking - Explore updating City's "No
Smoking" Ordinance.

Staff Time 1. Research options and policies related to "No Smoking" ordinances.

2. Present findings to Council.
0 D. Connected & Healthy Community
283
D 5 Admin Citywide Communications - Analyze the
effectiveness of the City's current
communication efforts and provide
suggestions for improvements.
$5,000 +
Staff Time

1. Obtain feedback from residents on current
communications practices.

2. Seek feedback from communications firm on areas for
improvement.

3. Devise a plan for improvement.

4. Explore technology applications which track resident concerns.
3 - Q4

4. Fellow has researched several CRM software and
will present findings in March/April 2024 to Council.

D 6 Admin Climate Action Plan - Secure funding and
develop a Climate Action Plan.
$100,000 +
Staff Time

1. Work with grant writers to keep an eye out for potential grant opportunities to support.

2. Apply and obtain grant.
2 ~
2024

1. Staff has identified possible funds from DIF fees and General Plan update funds to pay for this effort. Fellow has identified several consultants locally who can
assist with this process and will be preparing an RFP to solicit bids in March/April. Staff will then return to
Council with a recommendation for a contract award.

E 1 PD Cameras - Pursue funding opportunities
to expand safety cameras to cover critical
infrastructure & public spaces.
$200,000 +
Staff Time

1. Number of cameras installed.
1 Staff continues to look for grant funding source to
pursue objective.

E 2 PD Neighborhood Safety - Strengthen
neighborhood safety engagement
initiatives around emergency
preparedness.
$2,500/year
+ Staff Time

1. Number of meetings conducted annually.
0 Based on current staffing levels, this item is on hold.

E 3 PD SPPD Strategic Plan - Work towards the
execution and implementation of the
Police Department Strategic Plan.

Staff Time
plus costs to
complete the
plan

1. Publish plan to Police website.

2. Provide quarterly updates to Council on progress. 0
Based on current staffing levels, this item is on hold.

E 4 P&R SPPD Facility Upgrades - Pursue funding
to complete all Police facility upgrades.

Not to
exceed $1.1
million

1. Develop a phased plan that outlines cost and completion dates for the projects.

2. Report quarterly on the progression of the project.
3 - Q1

1. Security Fencing and Phase I of building remodel will begin 1st quarter of 2024.

E 5 PD SPPD Community Engagement - Develop
methods and programs to connect our
police with the community, local
nonprofits and businesses.
$2,500/year
+ Staff Time

1. Seek to host 1-2 Community Academy courses in
English/Spanish.

2. Number of meetings conducted in the community.

3. Creation of a Police Chief's Advisory Board and number of meetings held.

4. Creation of a Community Academy and number of
meetings held.

5. Number of meetings with held with Community Based
Organizations (CBO's).

6. Number of events with Police Activity League (PAL).
0 Based on current staffing levels, this item is on hold.

E 6 PD SPPD Wellness - Expand wellness options
for employees such as peer support
counseling services, and mindfulness and
resiliency training.
$2,000 +
Staff Time

1. Number of personnel who have completed training.

2. Establish a peer support team.
5 1. All sworn personnel have been CIT trained. 2. A 3- person peer support team was established and trained
in 2023 and have been deployed on a few occasions.

3. The City received a public safety wellness grant of
$25,000 which will go toward enhanced training and
counseling support.

E. Public Safety & Emergency Preparedness
284
E 7 PD Admin *Emergency Response - Create an
Emergency Preparedness, Response and
Recovery Plan. (GP)
Staff Time +
Direct Costs
TBD

1. Update the Emergency Operations Plan Manual.

2. Have Emergency Services Coordinator conduct trainings with City staff.

3. Establish SOP for each City department.

4. Perform a table top exercise bi-annually.
0 Based on current staffing levels, this item is on hold.

E 8 PD Admin Emergency Communications - Explore
technology and increase subscribership
with emergency communications to
enhance disaster-preparedness efforts.
$ TBD +
Staff Time

1. Measure increase in subscribership biannually.

2. Explore various technologies and associated costs
to maximize subscribership. 0
Based on current staffing levels, this item is on hold.

F 1 P&R Volunteerism - Expand, support and
connect volunteers, or those with
specialized skills, with local opportunities
to make a difference in Santa Paula.
$30,000 +
Staff Time

1. Number of volunteer projects annually.

2. Annual increase in the total number of hours logged by volunteers.

3. Host an annual volunteer appreciation event.

4. Attract retirees and professional talent.

5. Use a database to track volunteers, possibly CRM.
3 1. Volunteer software has been purchased. This will
help with managing ongoing volunteer opportunities
and tracking hours. Staff is working on expanding
opportunities and getting residents signed up.

F 2 P&R Admin Internships - Expand and enhance a
Citywide Internship and Apprentice
Program.
$10,000 +
Staff Time

1. Research and present to Council for feedback programs, policies and a budget for a citywide internship program and an apprentice program.

2. Partner with other agencies such as Santa Paula Unified School District (SPUSD) and local community colleges.
3 On 9/6/2023, Council set aside $100K in ARPA funding
to for the Youth Apprenticeship Readiness Accelerator
Program (YARA). YARA is a 12-week accelerator
pipeline for youth and young-adults, ages 16-24 years
old, that helps them enter traditional and emerging
workforce areas.

F 3 P&R Fagan Barranca Park Master Plan -
Pursue funding and create a Master
Restoration Plan.
$40,000-
$60,000

1. Hire consultant (biologist / landscape architect) to work with staff and community to create a master plan.

2. Present draft master plan to City Council. 3

1. A local landscape architect has been hired and is
working on a conceptual design. Staff plans to hold a
number of community input events over the next 6 - 8
months.

F 4 CED Code Enforcement - Develop
administrative hearing ordinance &
public code education programs.

TBD 1. By Fall 2023, promote educational materials and
compliance requirements through print, digital media.

2. Present the process for initiating a local code hearing officer to Council.

3. Number of educational events held.

4. Percent of tickets/fines adjudicated.

5. Percent of ticket/fines Year over Year.
2 - Q3
Code official was hired in October. Staff is currently
working on addressing outstanding code violations and
will begin working with the department staff on
accomplishing defined metrics by 3rd quarter 2024.

F 5 Financ
e
PW Admin Water/Sewer Bill Assistance - Explore
resources for connecting low-to-moderate or
fixed income residents with programs to assist
with water/sewer bills.

TBD 1. Research any previous programs and explore possible new assistance programs.

2. Present options to Council for consideration. 2 - Q2

1. Research on previous programs and current
programs from other cities has been conducted. Staff
needs to discuss possible options for any new
assistance programs and present options to Council.

F 6 Admin WiFi - Improve WiFi signal at the
Community Center & Cultural Arts
Building.

Minimal
budget
impact +
Staff Time

1. Complete tests of WiFi speeds and obtain
employee/guest feedback on WiFi.

2. Present findings to IT Manager for analysis and upgrades.

3. Implement upgrades based on available budget.

4. Measure Increased connectivity and WiFi speeds and
employee/guest satisfaction for users in both buildings. 2 - Q2

1. Most tests have been completed with a few building
exceptions; Once tests are completed results will be
provided to Chief Technology Officer.

F. Community Vitality
285
F 7 P&R Senior Master Plan - Develop a Senior
Master Plan.
$30,000 +
Staff Time

1.Work with Senior Advisory Committee and Santa Paula
Together to Create a local Senior Master Plan.

2. Hold community outreach events.

3. Present draft Master Plan to Council.
2 ~
2024

1. A committee has been formed and has begun
working on the Santa Paula Senior Master Plan.

F 8 P&R SPUSD Partnerships - Work with Santa
Paula Unified School District to create a
joint use agreement for school and city
facilities.

Direct Cost +
Staff Time

1. Meet with district to resume the process.

2. Provide updates to the District and Council via 2x2
Committee.

3. Bring draft MOU to Council.
2 - Q3
Staff has met and is working on an MOU to bring
forward to the School Board and Council.

F 9 P&R Recreational Facilities - Explore options
for community recreational facilities (i.e.
dog park, pickle ball court).
$60,000-
$250,000 +
Staff Time

1. Research viability, associated costs and possible
locations for potential activities.

2. Present findings to Council.
0 No budget identified at this time.

F 10 P&R Union Oil Building - Pursue programing
and public use options for the Union Oil
Building.
$500 + Staff
Time

1. Hold community outreach meetings.

2. Present findings to Council.

3. Create a Request for Proposals (RFP).

4. Present results of RFP to Council.
3 - Q2
#1-#3 Complete. Building ownership has been
transferred to the City. An RFP is currently out
regarding building use and programming. 4. RFP results
will be presented to Council April/May 2024.

F 11 CED Historic Resources - Update standards
for preservation of historic resources.

General Plan
Fund

1. Update the municipal code to include standards for
historic preservation. 2 ~
2024
Historic preservation code and Mills Act will be
reviewed and updated as a part of the comprehensive
code update.

G 1 CED Permitting - Streamline the application
and permitting processes for businesses.

Software
cost + Staff
time

1. Implementation of software system to reduce cycle time for application and permitting processes. 2 - Q3
Need for budget allocation to contract and implement
technology. Staff awaiting CityGate review and input
on opportunities for efficiencies and greater
streamlining.

G 2 CED Municipal Code - Review the City's
municipal code to reduce irrelevant
codes and update development codes.
$300,000 +
Staff Time

1. Number and/or percentage of codes reduced.
2 - Q1
Code will be reviewed and updated as a part of the
comprehensive code update.

G 3 Admin Employee Enrichment - Develop
programs around employee retention,
engagement, and succession planning.

Staff Time 1. Increase employee training and learning opportunities by at least 50%.

2. Establish a succession plan and related policies.

3. Percent of internal promotions.

4. Percent decrease in turnover YoY.
1 - Q1
Recently created DCM position will address Employee
Enrichment in 2024; internal discussions on a
committee to address items 1-2 are in the initial
stages of formation.

G 4 Admin Personnel Policies and Procedures -
Update the City Personnel Policies and
Procedures to comply with statutes.
$10,000 +
Staff Time

1. Update the policy.

2. Deliver a new policy to Council by Summer 2023. 2 - Q4 Effort in progress but no anticipated completion date
at this time.

G 5 Admin Records & Retention Policy - Update
records-keeping and retention policy.

Staff Time 1. Update the policy.

2. Measure how many paper/electronic files are eligible for destruction on a quarterly/yearly basis.

3. Measure time it takes to locate files pre/post policy. 1 - Q2
Staff is in the process of researching policies to
develop an updated policy.

G 6 Admin Staffing - Develop a staffing
augmentation plan.

Staff Time 1. Research options and best practices to provide redundancy and succession planning within a smaller City.

2. Present findings to Council. 0
G. Operational Excellence
286
G 7 Admin Wellness Options - Expand Employee
Wellness options.
$2,000 +
Staff Time

1. Research options and best practices to increase wellness programs for employees.

2. Present findings to Council.

3. Implement Council supported directives.
5 1. Wellness options in place such as the new Wellness & Fitness Benefit and employee health events such as
the Lunch & Learn Nutrition Event. Staff will continue
to work with HR to identify additional options.

G 8 Admin CED PD Housing/Homeless Position - Explore
opportunities to establish a
Housing/Homeless Services position who will
pursue partnerships and options to
understand, address, and meet the needs of
the unhoused including behavioral support.
$120,000
Fully
Burdened +
Staff Time

1. Develop a strategy and position around
housing/homeless with Council.

2. Research, budget, and create a position to address
position/strategy.

3. Recruit for position.

4. Explore opportunities to establish a Housing/Homeless task force, local services position and comprehensive
strategy.

5. Establish permanent facility for transitional housing.

6. Measure results through annual point in time count.
3 - Q2
#2, #3 and #5 complete. New MA began work on
January 16, 2024. Job duties assignments and goals are
being developed as a part of position orientation. City recently purchased triangle property across from
SPIRIT; Annual point in time count occurring this
month.
287
To: Honorable Mayor and Members of the City Council
From: Dan Singer, City Manager
Subject: FUTURE AGENDA ITEMS & FEBRUARY MEETING CONSIDERATIONS Date: January 24, 2024
Agenda Item: 10.B

CITY OF SANTA PAULA

MEMORANDUM
RECOMMENDATION:

Staff recommends City Council review future agenda items and provide input on the cancellation and modification of Council meetings for the month of February.

Presented by: Dan Singer, City Manager
BACKGROUND:

The attached Future Agenda Items forecast identifies anticipated agenda items for upcoming Council meetings as well as Study Session topics and long-range discussion items. Placing this forecast on the agenda affords the Council and the public the opportunity to discuss such topics and to make any recommendations. It should be noted this is only a forecast and may change over the course of time or based on feedback by the Mayor and City Manager during review of future agendas.

Additionally, and as detailed below, Council is asked to consider modifications to the regular meeting schedule for the month of February.

ANALYSIS:

February Meeting Modifications
The City has a unique opportunity to support two significant housing projects on the east side of town. The first is the expansion of East Area 1, commonly referred to as the Harvest development. Based on Council support, the City has been negotiating an amended Development Agreement (DA) over the past year and is now prepared to present the terms of the agreement to the Planning Commission and City Council. A joint study session of both bodies has been scheduled for January 29, at which time the Planning Commission will then consider recommendations of the DA to the City Council. The Council, however, cannot meet to act on the item until at least 10 days following the Planning Commission's action.

The second development project involves the RedTail multifamily rental housing project, which proposes 60% of the 298 units to be affordable. For the project to be feasible with such a large proportion of restricted units for low income tenants, RedTail will be applying for Federal tax credits, with an application deadline of late April, 2024, and seeking a commitment from the City's Housing Trust Fund. Part of The Harvest Development Agreement Amendment 288
anticipates a sizeable housing in-lieu contribution which, if dedicated to RedTail, would result in considerable affordable housing units being built on the east side of town, adjacent to the Harvest project.

In order to meet the April deadline, yet have the Development Agreement ordinance fully adopted (including first and second reading and then 30 days), the Council's second reading must occur by February 21. With the Planning Commission not meeting until January 29 and the 10-day period until the Council's first reading of the ordinance, staff is recommending cancelling the regularly scheduled meeting of February 7 in lieu of a special meeting the following week. That would potentially put the meeting on the night of Valentine's Day, February 14, so Council may also want to consider an alternate day, say Tuesday, February 13 or Monday, February 12, all of which would meet the tight deadlines for adoption.

At this time, Council is asked to consider the cancellation of the February 7 meeting and the establishment of a special meeting the following week, followed by the return to the regularly scheduled meeting of Wednesday, February 21. Discussion on this topic is limited to the Council meeting schedule for the month of February and may not include discussion of the proposed projects' substance.

Future Agenda Items
Should a member of the City Council wish to introduce a future agenda topic, it should be done in compliance with the Council's adopted Manual of Procedural Guidelines, Section 5.1.

Items introduced by a member of the Council during a Council meeting requires a second and should be reserved for time-sensitive matters needing attention within the proceeding 45 day period.

STRATEGIC PLAN:

Not applicable
FISCAL IMPACTS:

As staff is not suggesting additional meetings, there are no direct costs of altering the meeting schedule, except for staff time and usual costs associated with holding and broadcasting public meetings.

OPTIONS:

The Council is under no obligation to alter the regular meeting schedule and could elect to leave the February 7 and 21 meetings in tact. Doing so, however, could result in RedTail missing the timeline for the next cycle of tax credit applications, thereby delaying the construction of their project.

ATTACHMENTS:

1.24.24_Future Agenda Items.docx
289
Santa Paula City Council Tentative Agenda Schedule
Updated 1/18/2023
SPECIAL MEETING JANUARY 29, 2024

JOINT PLANNING / COUNCIL
Admin Development Agreement Lewis Limoneira Study Session 1st MEETING IN FEBRUARY 2024 AGENDA ITEMS
PW Telegraph Road Improvement Project (New CIP) February PW Telegraph/Main/Harvard Roundabout Project (New CIP) February CDD Housing Authority Trust Fund Request February
Admin Harvest at Limoneira Off-Site Improvement Agreement February CDD Lewis Limoneira Development Agreement February
P&R Summer Camp Agreement February
P&R Parks & Recreation Department Report February
FEBRUARY 21, 2024
Finance Mid-Year Budget Review February
Admin Expand Video Recordings to Commissions & Special Meetings February Admin ARPA Project Review February
CDD Community Development Department Report February
Admin Additional Funding for Lew Edwards Group February P&R Security Fence Award of Contract February

STUDY SESSION TOPICS
Admin No Smoking Ordinance April
Attorney Municipal Code Update Overview February
Finance Development Impact Fees March
PW Streets CIP Project Workshop February /
March

FUTURE AGENDA ITEMS
CDD Red Tail Tax Credit TEFRA Hearing April
CDD Red Tail Funding Agreement April
PW Plans & Specifications for 8th Street Streetlight Repair Project CDD Cultural Arts Update
CDD ADU Ordinance
Legal Fire MOU Amendment
CDD Appointment of Housing Trust Fund Oversite Committee P&R Police Department Remodel Award of Contract
290

Santa Paula City CouncilJanuary 24, 2024

Santa Paula City Council
January 24, 2024