U P L A N D C I T Y C O U N C I L
A G E N D A
F e bru a ry 1 4 , 2 0 2 2
C ity C ou n ci l C h a mbe r
B I L L V E L T O, M A Y O R
S H A N N A N M A U S T, M A Y O R P R O T E M
J A N I C E E L L I O T T, C O U N C I L M E M B E R
C A R L O S A . G A R C I A , C O U N C I L M E M B E R
R U D Y Z U N I G A , C O U N C I L M E M B E R
M I C H A E L B L A Y , C I T Y M A N A G E R
S T E P H E N P . D E I T S C H , C I T Y A T T O R N E Y
D I S R U P T I O N O F M E E T I N G S
I n d ivid uals wh o d em onstrate d isru p tive cond uct d urin g C ity C ou ncil m eetin g s th at p revent th e C ity C oun cil from cond ucting its m eeting in an ord erly m ann er are g u ilty of a m isd em ean or as stated in P C 40 3, d isru p tin g a p ub lic m eeting , and are sub ject to rem oval from th e ch am b er or arrest.
* * * * * * * * * * * *
5 :0 0 P M - C losed S ession
1.C A L L T O O R D E R A N D R O L L C A L L
2.A D D I T I O N S -D E L E T I O N S T O A G E N D A
3.O R A L C O M M U N I C A T I O N S
T his is a tim e for an y citizen to c om m en t on it em l is ted on th e cl osed session ag end a on ly. A n yon e wish in g to ad d ress t he leg is lat ive b od y is req u est ed to sub m it a sp eaker card t o th e C ity C l erk at or p rior to sp eaking . T h e sp eakers are req u ested to keep th eir com m en ts to n o m ore t h an th ree (3 ) m inu tes. Th e use of visu al aid s w ill b e in clud ed in the tim e lim it.
4.C L O S E D S E S S I O N
A .C LO S E D S E S S I O N C O N F E R E N C E W I T H L E G A L C O U N S E L - P E N D I N G
L I T I G A T I O N
G overn m en t C od e S ection 54 95 6.9 (d )(1 )
C ase N am e:Yon ko, et al . v. C i ty of U p lan d , et al. U nited S tat es D istrict C ourt, C en tral D istrict of C aliforn ia, C ase N u m b er 5:1 8-C V- 0 22 59
B.C LO S E D S E S S I O N C O N F E R E N C E W I T H R E A L P R O P E RT Y N E G OT I A TO R S C alifornia G overn m en t C od e S ection 54 95 6.8
P rop erty:
10 18 E . 2 0t h S treet (A P N : 1 04 4-1 11 -51 ), in terest in real p rop erty
C ity
N eg otiators:
C ity M an ag er M ich ael B l ay, D evelop m en t S ervic es D irector Rob ert D alq u est, and C ity Attorney S tep hen D eitsch N eg otiatin g
Parties:
B ill A n g el
Un d er
N eg otiation :
P rice and term s of p aym ent
C .C LO S E D S E S S I O N C O N F E R E N C E W I T H R E A L P R O P E RT Y N E G OT I A TO R S C alifornia G overn m en t C od e S ection 54 95 6.8
P rop erty:
65 0 sq uare foot lan d scap e p lan ter w it hin a p u b lic p arki n g lot located ad jacent to 1 01 E . S ec on d A ven u e (A P N : 1 04 6-5 92 - 24 )
C ity
N eg otiators:
C ity M an ag er M ich ael B l ay, D evelop m en t S ervic es D irector Rob ert D alq u es t, D evel op m en t S ervic es M anag er Liz C havez, and E con om ic D evelop m ent C oord inator M elecio P icazo N eg otiatin g
Parties:
M ark D avid son
Un d er
N eg otiation :
P rice and term s of p aym ent
D.C LO S E D S E S S I O N C O N F E R E N C E W I T H R E A L P R O P E RT Y N E G OT I A TO R S C alifornia G overn m en t C od e S ection 54 95 6.8
P rop erty:
Vacan t l an d on t he sou th sid e of W ash in g t on B ou levard , w est of S ixth Avenu e (A P N : 10 46 -43 3-2 5)
C ity
N eg otiators:
C ity M an ag er M ich ael B l ay, D evelop m en t S ervic es D irector Rob ert D al q u est , D evel op m en t S ervi ces M anag er L iz C havez and E con om ic D evelop m ent C oord inator M elecio P icazo N eg otiatin g
Parties:
C ity of U p land and Poten tial B uyers
Un d er
N eg otiation :
P rice and term s of p aym ent
E .C LO S E D S E S S I O N C O N F E R E N C E W I T H R E A L P R O P E RT Y N E G OT I A TO R S C alifornia G overn m en t C od e S ection 54 95 6.8
P rop erty:
19 17 , 1 92 3 & 1 92 5 W. Foot hill B ou levard (A P N : 1 00 6-5 74 - 02 )
C ity
N eg otiators:
C ity M an ag er M ich ael B l ay, D evelop m en t S ervic es D irector Rob ert D alq u es t, D evel op m en t S ervic es M anag er Liz C havez, and E con om ic D evelop m ent C oord inator M elecio P icazo N eg otiatin g
Parties:
P h il Velto, H ub C ap A n nie
Un d er
N eg otiation :
L ease p rice an d term s of p aym en t
F.C LO S E D S E S S I O N P U B L I C E M P LOY E E P E R F O R M A N C E E V A L U A T I O N P u rsuan t to G overn m en t C od e S ection 54 95 7
Title: C ity M anag er
* * * * * * * * * * * *
7:00 P M
5.I N V O C A T I O N
Reverend J an C h ase, U nity C hu rch of Pom ona
6.P L E D G E O F A L L E G I A N C E
7.P R E S E N T A T I O N S
C om p assion ate C om m un ities p resen tation b y D r. L aura B u rg is
8.C I T Y A T T O R N E Y
9.O R A L C O M M U N I C A T I O N S
T his i s a t im e for an y ci ti zen t o com m ent on an y it em li st ed or n ot li st ed on th e ag end a. A nyon e wi sh in g to ad d res s the leg islat ive b od y i s req u es ted t o su b m it a sp eaker card t o th e C i ty C lerk at or p rior to s p eaki n g . T h e sp eakers are req u ested t o keep th eir com m en ts to no m ore t h an three (3) m in u t es. S p eakers will b e g iven fi ve (5 ) m inu tes d u ri n g p ub lic h eari ng s. T h e use of visu al ai d s will b e i n c lu d ed in th e t im e li m i t. P ub li c com m ents an d q u est ion s for t h e p urp ose of h earing curren t m at ters of con cern in ou r com m u n i ty an d to p rovid e c it izen s a m eth od for th e p ub li c to h ear th ose con cerns in an op en ven u e is encourag ed .
H owever, u n d er t he p rovisions of t he B rown A ct , th e C ity C ou n c il is p rohib ited from d iscu ssion of it em s n ot listed on t he ag end a, and th erefore, th e C ity C oun cil, C ity M an ag er, or C it y A tt orn ey w il l t ake com m u n i cat ion s un d er ad visem en t for consid eration an d ap p rop riate resp on s e or d i sc u s si on at a later tim e.
10.C O N S E N T C A L E N D A R
A ll m at ters list ed u n d er th e C onsent C al en d ar are c on s id ered t o b e rou ti ne and will b e en act ed b y on e roll call vot e. T h ere w i ll b e no sep arat e d is cu ss ion of these i tem s u n l ess m em b ers of t h e l eg i sl ati ve b od y req uest sp ecific item s b e rem oved from th e C on sen t C alen d ar for sep arate action.
A .A P P R O V A L O F M I N U T E S
A p p rove th e Reg u lar M eetin g M in utes of J anu ary 2 4, 2 02 2, the S p ecial Worksh op M i nu tes of J anu ary 2 4, 20 22 , and t h e S p ecial M eeti ng M inu tes of J an uary 31 , 20 22 . (S taff Person: Keri J ohn son ) B.R E S I G N A T I O N F R O M B U I L D I N G B O A R D O F A P P E A L S A ccep t th e resi g n ati on of J as on G au d y from th e B u i ld in g B oard of A p p eals and i nstruct th e C i ty C l erk t o p ost th e vac an c y p u rsuan t to G overnm ent C od e S ection 5 49 74 . (S taff Person: Keri J ohn son ) C .A P P R O V A L O F S I D E L E TT E R W I T H V A R I O U S E M P LOY E E A S S O C I A T I O N S F O R T H E E X T E N S I O N O F S U P P L E M E N TA L C O V I D -19
S I C K L E A V E B E N E F I T S
A d op t th e si d e letter ag reem en ts w it h th e U p lan d Pol ic e O fficers' A ssociation , U p l an d Poli ce M anag em en t A s soc iat ion , U p lan d C ity E m p loyees A ssociation , and Up lan d M id -M an ag em ent E m p loyees A ssociation to exten d th e C O V I D -19 S up p lem en tal Paid S ick L eave B en efit. (S taff Person: S tep hen Parker)
D.T R E A S U R E R 'S R E P O RT D E C E M B E R 20 21 Receive an d file the D ecem b er 2 02 1 Treasu rer's Rep ort. (S taff Person :
S tep h en Parker)
E .20 22 W A T E R R E V E N U E B O N D S P R O G R E S S R E P O R T Receive an d file p rog ress rep ort on th e 2 02 2 Water Reven ue B ond s. (S taff Person: S tep hen Parker)
F.A P P R O V A L O F J A N U A R Y W A R R A N T A N D PA Y R O L L R E G I S T E R S A p p rove th e J an uary Warran t Reg isters (check nu m b ers 37 56 8-3 78 67 ) and D irect D is b u rs em en ts t otal in g $ 9 ,91 1,0 63 .98 an d Payroll Reg isters totaling $1 ,13 3,1 67 .16 (check n um b ers 1 62 25 0-1 62 26 0) and E lectron ic F u nd Transfers (E F T 's) 31 98 4-3 24 73 ). (S taff Person: S tep hen Parker) G .P R O F E S S I O N A L S E R V I C E S A G R E E M E N T TO P R E PA R E T H E LO C A L
R O A D S A F E T Y P L A N
A ccep t $58 ,50 0 in g ran t fu nd in g from the C altran s D ivision of L ocal A ssistance; ap p rove a p rofes si on al s ervi ces ag reem ent with K O A C orp oration, I n c . for the p rep arat ion of th e L ocal Road S afet y P lan (L R S P ); and aut horize th e C it y M an ag er t o execu te th e ag reem en t and an y future am en d m ents with in th e C ity M anag er's au th ority. (S taff Person : B rad en Yu)
H .A P P R O V A L O F PA R C E L M A P 19 43 5 (LO C A T E D O N T H E S O U T H S I D E O F
M E S A C O U R T E A S T O F C A M P U S A V E N U E ) A p p rove th e su b d ivi si on ag reem en t an d aut horize th e C ity M an ag er to execu te t he ag reem en t ; accep t t h e associated b on d s an d ap p rove Parcel M ap 19 43 5 for record ation. (S taff Person : B rad en Yu)
11.P U B L I C H E A R I N G S
A .P U B L I C H E A R I N G TO C O N S I D E R A N D TA K E A C T I O N O N D R A F T M A P S
A N D T H E R E D R A W I N G O F U P L A N D C I T Y C O U N C I L E L E C T I O N
D I S T R I C T B O U N D A R I E S
Th e C ity C oun cil will con d u ct a p u b l ic h earin g t o con si d er an d take action on d raft m ap s and t h e red raw in g of U p land C it y C ou n c il E lection D istrict B ou nd aries. (S taff Person : Keri J oh nson)
Recom m end ation:1 )S taff P resen tation
2 )H old P u b lic H earing
3 )Receive inp ut from th e c om m u n it y on d raft m ap s, and th e red rawing of election d istrict b oun d aries 4 )C lose p ub lic H earin g
5 )P rovid e d irect ion t o s taff reg ard ing wh ich m ap sh ould b e consid ered for i n c lu si on in th e O rd in anc e to ad op t new d istrict b oun d aries for the U p land C ity C oun cil
6 )H old fi rs t read ing b y title on ly, waive fu rt her read in g , and in trod u ce an O rd in ance am en d ing S ection
2.0 2.1 00 B y-D i st ri ct E lection s, Red rawi ng C oun cil D istrict M ap s , an d C onfi rm in g su ch revi sed C oun cil D istrict B oun d aries
12.C O U N C I L C O M M I T T E E R E P O R T S
A .F I N A N C E C O M M I TT E E M E E T I N G , J A N U A R Y 2 6, 2 02 2 Th e C om m it tee C hairp erson will rep ort on th e m eeti n g . T h i s i s an in form ation item only.
B.S P E C I A L E C O N O M I C D E V E LO P M E N T C O M M I TT E E M E E T I N G , J A N U A RY 31 , 20 22
Th e C om m it tee C hairp erson will rep ort on th e m eeti n g . T h i s i s an in form ation item only.
13.B U S I N E S S I T E M S
A .A N N U A L C O M P R E H E N S I V E F I N A N C I A L R E P O R T (A C F R ) A N D R E L A T E D R E P O R T S F O R T H E F I S C A L Y E A R E N D E D J U N E 3 0, 2 02 1 Receive and fil e th e A nn ual C om p rehen sive F i nan ci al Rep ort , th e A ud itors C om m u nication w ith T hose C h arg ed wi th G overn an c e, th e A u d i tor's Rep ort on I ntern al C ontrol over F in ancial Rep orting and C om p lian ce an d O ther M atters, and t he I n d ep en d en t A ccou ntants’ Rep ort of A g reed -U p on P roced ures A p p lied t o A p p rop riat ion L im it Worksh eets for t h e F is cal Year E nd ed J un e 30 , 20 21 . (S taff Person: S tep hen Parker)
14.C O U N C I L C O M M U N I C A T I O N S
15.C I T Y M A N A G E R
16.A D J O U R N M E N T
T he n ext reg ularly sc h ed u l ed C ity C oun ci l m eetin g i s M on d ay, Feb ru ary 28 , 2 02 2
N O T E : I f yo u cha l l e ng e t h e p u b l i c h e a ri ng (s ) o r t he re l a t e d e nvi ro nm e n t a l d e t e rm i na t i o ns i n co u rt , yo u m a y b e l i m i t e d t o ra i s i n g o nl y t h o s e i s s ue s yo u o r s o m e o n e e l s e ra i s e d a t t h e p ub l i c h e a ri ng d e s cri b e d i n t h i s no t i ce , o r i n w ri t t e n co rre s p o nd e nce d e l i ve re d t o t he C i t y o f U p l a nd , a t , o r p ri o r t o , t he p ub l i c he a ri n g .
A l l A g e n d a i t e m s a n d b a ck-u p m a t e ri a l s a re a va i l a b l e f o r p u b l i c re vi e w a t t h e U p l a nd P ub l i c L i b ra ry, d o w n s t a i rs re f e re n ce d e s k a t 4 5 0 N o rt h E ucl i d A ve nue , t h e C i t y C l e rk's O f f i ce a t 460 N o rt h E ucl i d A ve nue a nd t h e C i t y w e b s i t e a t w w w.u p l a nd ca .g o v.
I n co m p l i a n ce w i t h t h e A m e ri ca n s w i t h D i s a b i l i t i e s A ct , i f yo u n e e d s p e ci a l a s s i s t a nce t o p a rt i ci p a t e i n t hi s m e e t i n g , p l e a s e co n t a ct t h e C i t y C l e rk's O f f i ce , 931-4 1 2 0 . N o t i f i ca t i o n 48 h o u rs p ri o r t o t h e m e e t i n g w i l l e n a b l e t he C i t y t o m a ke re a s o n a b l e a rra n g e m e n t s t o e n s ure a cce s s i b i l i t y t o t h i s me e t i ng . [2 8 C F R 3 5 .1 0 2 -35.104 A D A T i t l e I I ] P O S T I N G S T A T E M E N T : O n Fe b ru a ry 9, 2022 a t ru e a n d co rre ct co p y o f t hi s a g e nd a w a s p o s t e d o n t he b ul l e t i n b o a rd s a t 450 N . E ucl i d A ve nue (U p l a n d P ub l i c L i b ra ry) a n d 4 6 0 N . E u cl i d Ave n u e (U p l a nd C i t y H a l l ) a n d t he C i t y w e b s i t e a t w w w.up l a n d ca .g o v.
S T A F F R E P O R T
I T E M N O . 10.B .
D A T E :Feb ru ary 1 4, 2 02 2
T O :M A YO R A N D C I T Y C O U N C I L
F R O M : M I C H A E L B L A Y, C I T Y M A N A G E R P R E P A R E D B Y : S T E P H E N PA R K E R , A S S I S TA N T C I T Y M A N A G E R
K E R I J O H N S O N , C I T Y C L E R K
S U B J E C T :R E S I G N A T I O N F R O M B U I L D I N G B O A R D O F A P P E A L S
R E C O M M E N D E D A C T I O N
I t is rec om m en d ed th at t he C it y C oun cil ac cep t th e resig nat ion of J ason G aud y from the B u ild ing B oard of A p p eals an d instruct th e C ity C l erk to p ost t h e vacancy p ursu ant to G overn m en t C od e S ection 54 97 4.
G O A L S T A T E M E N T
Th e p rop osed act ion su p p ort s th e C i ty's g oal to p rovi d e op p ortu nities for t h e cit izenry to p articip ate i n local g overn m en t throug h servic e on vari ous com m ittees, com m i ss ion s, an d b oard s.
B A C K G R O U N D
Th e B u ild ing B oard of A p p eal s w as estab lish ed i n 19 77 p u rs uan t t o t he U n i form B uild in g C od e. B oard m em b ers are q u ali fied b y exp eri enc e an d train in g t o d eterm i n e th e suitab ilit y of altern ate m aterial s and m eth od s of c on s tru c ti on , and to p rovid e reason ab l e int erp ret ations of th e Un iform B uild in g , M ech anical, P lum b ing , H ousin g , an d A b atem en t of D an g erous B u ild ing s C od es, N ation al E lectrical C od e and th e S eism ic H azard s Red u ction O rd in ance.
I S S U E S /A N A L Y S I S
Th e C ity C lerk's O ffice received n oti fic ati on of B oard M em b er G au d y's resi g n ati on on Feb ru ary 1, 20 22 . H e w as ap p oin ted on Feb ru ary 25 , 20 19 , and w as nom in ated b y C oun cilm em b er Z u nig a. T he term for this ap p ointm en t will exp ire in D ecem b er 2 02 2.
Th is res ig nat ion creates an u nsch ed u led vacan cy, and G overn m en t C od e S ec ti on 54 97 4 req uires th at vacancies b e p osted for 10 w orking d ays b efore new ap p ointm en ts can b e m ad e.
P u rsuan t to Resol ut ion 6 60 8, th e C ou ncilm em b er n om inat es a m em b er su b jec t to ratification b y a m ajority of the C oun cil.
F I S C A L I M P A C T S
Th ere are no fiscal im p acts associated with th is action .
A L T E R N A T I V E S
P rovid e altern ative d irection to staff.
AT TAC HM E NT S :
Description
No Attachments Available
S T A F F R E P O R T
I T E M N O . 10.C .
D A T E :Feb ruary 14 , 20 22
T O :M A YO R A N D C I T Y C O U N C I L
F R O M : M I C H A E L B L A Y, C I T Y M A N A G E R P R E P A R E D B Y : S T E P H E N PA R K E R , C PA , A S S I S TA N T C I T Y M A N A G E R
T E R R Y D OY L E , H U M A N R E S O U R C E S /R I S K M A N A G E R S U B J E C T :A P P R O V A L O F S I D E L E TT E R W I T H V A R I O U S E M P LOY E E
A S S O C I A T I O N S F O R T H E E X T E N S I O N O F S U P P L E M E N TA L C O V I D - 19 S I C K L E A V E B E N E F I T S
R E C O M M E N D E D A C T I O N
I t is recom m en d ed that th e t he C ity C ou n ci l ad op t th e si d e let ter ag reem ents wi th t he Up lan d Police O fficers' A s soc iat ion (U P O A ), Up lan d Police M an ag em ent A ss oci ati on (U P M A ), Up lan d C ity E m p loyees A ssociat ion (U C E A ), and Up lan d M i d -M an ag em en t E m p loyees A ssociation (U M M E A ) to extend th e C O V I D -1 9 S up p lem en tal Paid S ick Leave B enefit (S P S L ).
G O A L S T A T E M E N T
Th e p rop osed act ion su p p ort s the C i ty's an d t he A ssociations' g oal of p rovid in g em p loyees w ith the secu rity of l ab or ag reem en ts , w h i le ad d ress in g fai r an d eq u i tab le b en efi ts for services p rovid ed to th e C ity.
B A C K G R O U N D
F rom J an u ary 1, 20 21 to S ep tem b er 3 0, 2 02 1, C al iforni a req u ired em p l oyers with tw enty-five (25 ) or m ore em p loyees to p rovid e full-tim e workers u p to eig hty (8 0) hou rs of su p p lem ental sick leave for C O V I D -19 related reasons. Th is leave exp ired on S ep tem b er 30 , 20 21 .
Th e C O V I D -1 9 S u p p lem en t al S i ck L eave was for em p loyees w h o were u nab le to w ork or telew ork d u e to h avi n g to care for them selves b ec au s e th ey w ere su b ject to q uarant in e or isolation p eri od relat ed t o C O V I D -1 9, ad vi sed b y a h ealt h care p rofess ion al t o q u aran tine d ue to C O V I D -1 9, exp erien cing sym p tom s of C O V I D -19 , caring for a fam ily m em b er wh o is su b ject to q u aran tine or isolation p eriod related to C O V I D -19 , carin g for a ch ild wh ose sch ool
or p lace of care i s cl osed or un avail ab l e d u e to C O V I D -19 on th e p rem ises, att en d in g vaccine ap p oin tm ent, or d ue to vaccin e-related sid e effects.
I S S U E S /A N A L Y S I S
D ue to th e O m n icron variant of th e C O V I D -1 9 vi ru s, w h ic h h as d em on st rat ed t o b e hig h ly con tag iou s, C i ty em p l oyees are c on t in u al ly at a h ig h risk for b ei n g exp osed to t h i s varian t an d p otentially b ec om i n g in fect ed . I n an effort to en su re th at em p l oyees h ave ad eq u ate sick leave if n eed ed for an y of th e C O V I D -1 9 rel ated reason s st ated p reviously an d are ab l e t o care for th eir fam i ly m em b ers w ho h ave b ecom e ill from C O V I D -19 , the C it y wou ld like t o ext end this ad d ition al tim e to em p loyees so th ey can take care of their own health need s an d their fam ily.
O n Feb ru ary 2, 2 0 2 2 , A s sem b l y B ill 8 4 (A B 84 ) w as am en d ed b y G overn or N ew som req u irin g em p loyers w it h 2 5 or m ore em p loyees to on ce ag ain p rovid e ad d it ion al p aid S P S L to w orkers for C O V I D -1 9 relat ed reas on s . T h e am en d m en t t o A B 8 4 is curren tly with the S tate leg islature and exp ected to b e ap p roved w ithin the n ext few weeks.
Th e C ity m et an d conferred w it h each of t he u ni ons an d ag reed t o th e foll ow in g : 1 ) rein state th e b al an c es of an y u nu sed S P S L ; 2 ) all em p loyees to ret roac ti vely us e t he un used S P S L effective O ct ob er 1, 2 02 1 throug h J u n e 3 0, 2 02 2; an d 3 ) p rovi d e em p l oyees with an ad d ition al leave b an k of eig hty (80 ) hou rs of S P S L.
A ll S id e Letter A g reem ent s to i m p lem ent the ext ens ion of t he S P S L are attached for C ity C ou ncil ap p roval.
F I S C A L I M P A C T S
Th e tot al p oss ib le cost c an n ot b e es ti m at ed at t hi s t im e. I n m ost i n s tan ces , au th orized us e of th e S u p p l em en tal Paid S ick Leave B en efit (S P S L) wou ld rep lace p erson al si ck l eaves. T he S P S L is avai lab le for u s e for sp ecific C O V I D relat ed p u rp os es. U n used S P S L at 6/3 0/2 02 2 w ill b e forfeited .
A L T E R N A T I V E S
P rovid e altern ative d irection to staff.
AT TAC HM E NT S :
Description
UP O A Supplemental Leave
UP M A Supplemental Leave
UC E A S upplemental L eave
UM M E A Supplemental Leave
S T A F F R E P O R T
I T E M N O . 10.D .
D A T E :Feb ru ary 1 4, 2 02 2
T O :M A YO R A N D C I T Y C O U N C I L
F R O M : M I C H A E L B L A Y, C I T Y M A N A G E R P R E P A R E D B Y : S T E P H E N PA R K E R , C PA , A S S I S TA N T C I T Y M A N A G E R
LO N D A B O C K-H E L M S C PA , F I N A N C E O F F I C E R S U B J E C T :T R E A S U R E R 'S R E P O R T D E C E M B E R 2 02 1
R E C O M M E N D E D A C T I O N
I t is recom m end ed t hat th e C i ty C ou n ci l recei ve an d fil e th e D ecem b er 2 0 2 1 Treasurer's Rep ort.
G O A L S T A T E M E N T
Th e p rop osed ac ti on su p p ort s the C i ty's g oal to m an ag e th e C it y's resources i n a fiscally resp on sib le m an ner.
B A C K G R O U N D
Per C aliforn ia G overn m en t C od e S ect ion 53 64 6(b ), the C it y's treasu rer or ch ief fi sc al officer m ay rend er a treasu rer's rep ort t o th e C it y C ou n c il on a q uarterly b asi s. Th e C ity has elected to p rovi d e th is rep ort t o C it y C oun ci l m on th ly, b u t t he C ity's I n ves tm en t Policy (ap p roved D ecem b er 13 , 20 21 ) req u ires t he I n ves tm en t O fficers t o p rovid e a rep ort q uarterly t o the F inan ce C om m itt ee at reg u larly sc h ed u l ed m eeting s. Th is rep ort sh all i nc lu d e th e t yp e of in vestm en t, issu er, d ate of m aturity, p ar, and d ollar am ou nt invested on all securities, curren t m arket valu e as of th e d ate of th e rep ort , in vestm en ts an d m onies h el d b y t h e l ocal ag en cy, and s h al l ad d i ti onal ly inclu d e a d es crip ti on of an y of t he local ag en c y's fun d s , in vest m en ts, or p rog ram s, t hat are u n d er the m an ag em ent of con tract ed p art ies, i nclu d i ng l en d in g p rog ram s.
Th e rep ort sh all in clud e a st atem en t of c om p li an c e w ith th e i n ves tm en t p olicy an d shall in clud e a st atem ent n ot in g t h e C ity's ab ilit y to m eet i ts exp end iture req uirem ent s for th e n ext six m on th s.
I S S U E S /A N A L Y S I S
Th e su b m ission of the m onthly Treasu rer's Rep ort is a com p liance m easure.
F I S C A L I M P A C T S
Th ere is n o fiscal im p act associated with th is action .
A L T E R N A T I V E S
P rovid e altern ative d irection to staff.
AT TAC HM E NT S :
Description
T reasurer's Report - December 2021
S T A F F R E P O R T
I T E M N O . 10.E .
D A T E :Feb ru ary 1 4, 2 02 2
T O :M A YO R A N D C I T Y C O U N C I L
F R O M : M I C H A E L B L A Y, C I T Y M A N A G E R P R E P A R E D B Y : S T E P H E N PA R K E R , C PA , A S S I S TA N T C I T Y M A N A G E R
R O B E RT TO R R E Z , F I N A N C E C O N S U LTA N T S U B J E C T :2 02 2 W A T E R R E V E N U E B O N D S P R O G R E S S R E P O RT
R E C O M M E N D E D A C T I O N
I t is rec om m en d ed th at t he C it y C oun cil recei ve an d file p rog ress rep ort on t he 2 02 2 Water Revenu e B on d s.
G O A L S T A T E M E N T
Th e p rop osed ac ti on sup p orts t he C ou n c il 's g oal t o p rovi d e sou n d fiscal steward shi p for the C ity of U p land .
B A C K G R O U N D
At its D ecem b er 13 , 2 02 1 p ub lic m eeti ng , th e C i ty C ou ncil ap p roved S t aff’s p rop osed B L A S T strateg y d es ig n ed to red u ce th e C ity’s Un fun d ed A cc ru ed Pen sion L iab il it y (U A L ) w ith C al P E R S. A m ong t he several act ion s C ou nc il t ook at t h at m eeti n g w as d irect in g S t aff to assem b le t he b on d fi nan ci ng team an d p rep are related leg al d ocum ent s for sub seq uen t C ou ncil ap p roval of th e issuan ce of 2 02 2 W ater Reven u e B ond s t o fin anc e ap p roxi m at ely $1 5 m illion of W ater system c ap i tal p rojec ts . T h e is su an c e of t h os e b ond s w ill free u p Water reserves t hat wi ll b e used to p u rc has e t h e G en eral F un d leas e reven u e b on d s t hat are a key com p on ent of th e B L A S T strateg y.
I S S U E S /A N A L Y S I S
S taff has assem b led th e B on d F in ancin g Team . T he team inclu d es:
B on d U nd erwritin g F irm J P M org an
M u nicip al A d visor U rb an F utures, I nc.
B on d C oun sel B est, B est & K rieg er,
D isclosu re C oun sel S trad ling Yocca C arlson an d Rau th ; and B an k Trustee U.S. B ank.
Th e F in an c in g Team w as in it ial ly s elec ted via a c om p eti ti ve p roces s wh en t he C ity w as con tem p lating p en si on b on d op ti on s . Th e Team h as b een w orki ng d i li g en tl y t o p rep are, review, finalize related b on d d ocu m en ts, and review and d iscuss b ond fin ancin g op tions.
At the sam e tim e, th e C ity C oun cil h as t aken ad d i ti onal act ion s i n s u p p ort of t h e b on d issue, in clud in g ap p roving a resolu tion d eclarin g th e C it y’s in ten t to is su e t ax-exem p t b on d s to fin ance cap ital p rojects and rei m b u rse i ts elf for relat ed cost s of i ss u an ce (s u c h as U nd erwriter and ot her con su ltant fees ); and , resol ut ion s to re-est ab l is h the C i ty of U p lan d Parkin g A u th ority an d , tog ether w ith the C ity, form th e C ity of U p land F inan cing A u th ority.
Th e C i ty’s ad op t ed F iscal Year 2 02 2 B u d g et in clud es ap p roxim ately $16 .9 m i ll ion in need ed Water syst em c ap i tal p rojects. W it h th ese p rojects as a b as e of n eed , t he P u b li c Works D ep artm ent has id en tified $1 5.5 m i ll ion of W ater cap ital p roject s th at are b eli eved t o b e ab le to b e c om p let ed i n 3 years an d q u ali fy for long -term (1 5-year) tax-exem p t b on d fin ancin g . (T he b asi c crit eri a for tax-exem p t b ond finan cing is t hat the p rojec ts , on ce b u ilt, have a rem aining useful life of at least 15 years and also serve a p u b lic p u rp ose or b en efit.)
M unicipal B o nd M arket
A lth oug h m u n ic ip al b on d in terest rat es h ave b een risin g over t he last few m on th s, rat es are still relatively low. Th e Fed eral Reserve B an k B oard h as ann oun ced it is consid ering raisin g sh ort-term int erest rates , p erh ap s startin g i n M arc h 20 22 . Th e B oard is exp ected to ap p rove th e first of a series of in creases to th e short-term b an k-t o-b an k b orrow in g rate, th at w ill b rin g th at rate to 0.7 5% b y th e end of th e calend ar year.
E con om ists an d oth er i n d u s try exp erts b el ieve t h at th e m arket h as alread y reacted to the Fed ’s an nou nc ed rate hi kes an d , th erefore, tod ay’s rat es m ay al read y reflect t he an ticip ated im p act of an i n c reas e i n sh ort-term i n t eres t rat es, i n c lu d i n g t he im p act on m un icip al b on d rates.
B o nd D o cuments
A p ri m ary d ocu m en t is t h e P reli m i n ary O ffi ci al S t atem en t (P O S ); it is th e b ond p rosp ectu s th at w ill b e d istrib u ted to p oten tial in vestors. Th e P O S in clud es in form ation on C ity d em og rap h ics, C ity fin ancial p olicies, Water system op eration s, C ity and Water exp end itures and reven ue an d inclu d es a cop y of th e C ity’s ad op ted A n nu al C om p reh ensive F in ancial Rep ort (A C F R ). Th e A C F R i s on ton ig ht ’s C ou ncil ag end a for ad op ti on as a sep arate ag en d a item .
T he p u rp ose of the P O S is to p rovid e inform ation n eed ed b y investors to d ecid e wh eth er to p u rchase th e C it y’s Water b on d s; for in vestors to con cl ud e the C it y i s in g ood finan cial sh ap e and t o p rovid e assurance to in vest ors th at the C i ty h as the ab i li ty t o rep ay t h e b on d s (t o m ake th e ann ual b on d p aym en ts).
B o nd F inancing C alendar
A s in d i cat ed , th e b on d relat ed d oc u m en t s h ave b een d raft ed and are u nd erg oin g fin al review s b y th e F in an c in g Team . O ur ob jec ti ve is t o com p lete all the d ocu m en ts in s ub st ant ial ly fin al form for ad op t ion b y th e C i ty C ou ncil and th e C it y of U p lan d F inan cing A u th ori ty at the Feb ruary 28 p u b lic m eetin g .
Th e intern al Wat er Revenu e B on d F in an c in g calen d ar is very ag g res si ve. S taff an d t h e Team are workin g with d u e sp eed to d o all that is need ed to g et th e Water Reven ue B ond s to m arket p rior to the Fed eral Reserve B oard ’s M arch 1 4/1 5 m eet in g . Following are som e key d ates an d activities on th e F inan cing calend ar:
Feb ruary 14 – C i ty C ou ncil ap p roval of t h e F i scal Year 2 02 1 aud ited A n nu al C om p reh ensive F in ancial Rep ort
Feb ruary 2 2 – F i n an ci n g Team Z oom c all w it h b on d cred i t rating ag en cy S tan d ard & Poor’s (S &P )
Feb ruary 2 8 – C ou ncil & A u th ori ty ap p roval of b on d sal e an d ad op ti on of b on d d ocum ents
M arch 3 – Receive cred it rating from S &P
M arch 9 – P re-P ricing (p re-s ale) Team c all t o review J P M org an ’s p rop osed i n t eres t rate scale
M arch 10 – P rice (sell) b on d s
M arch 24 – B ond sal e closin g and rec eip t of b on d p roceed s b y C it y’s b an k/b on d Trustee U S B an k
F I S C A L I M P A C T S
Th ere is n o fiscal im p act related to th is item .
A L T E R N A T I V E S
P rovid e altern ative d irection to staff.
AT TAC HM E NT S :
Description
No Attachments Available
S T A F F R E P O R T
I T E M N O . 10.F .
D A T E :Feb ru ary 1 4, 2 02 2
T O :M A YO R A N D C I T Y C O U N C I L
F R O M : M I C H A E L B L A Y, C I T Y M A N A G E R P R E P A R E D B Y : S T E P H E N PA R K E R , C PA , A S S I S TA N T C I T Y M A N A G E R
LO N D A B O C K-H E L M S, C PA , F I N A N C E O F F I C E R S U B J E C T :A P P R O V A L O F J A N U A RY W A R R A N T A N D PA Y R O L L R E G I S T E R S
R E C O M M E N D E D A C T I O N
I t is recom m en d ed t h at C it y C ou n ci l ap p rove th e J anu ary Warran t Reg ist ers (check n um b ers 37 56 8-3 78 67 ) an d D irect D isb u rsem en ts t otal in g $ 9 ,91 1,0 63 .98 an d Payrol l Reg isters totaling $1,1 33 ,16 7.1 6 (c h ec k n u m b ers 16 22 50 -16 22 60 ) and E lectronic F un d Tran sfers (E F T 's) 31 98 4-3 24 73 ).
G O A L S T A T E M E N T
Th e p rop osed ac ti on su p p ort s the C i ty's g oal to m an ag e th e C it y's resources i n a fiscally resp on sib le and transp arent m an ner.
B A C K G R O U N D
Th e C i ty C ou ncil is p res en t ed w it h th e finan cial d is b u rs em en ts for the p u rch ase of m aterials, su p p lies, services, cap it al p rojects, an d p ayroll w arrants issu ed in t h e p rior m on th . T his p rocess p rovid es th e C ity C oun cil the op p ortu nity to review th e exp en ses of th e C ity.
I S S U E S /A N A L Y S I S
I n accord an ce w it h G overn m en t C od e S ect ion 3 72 08 , t h e F i n an ce O ffic er h ereb y certi fies th at th e at tached W arran t Reg i st ers, D i rec t D isb ursem ent s, an d Payroll Reg i st ers have b een foun d to conform to th e ap p roved b u d g et an d h ave b een p aid . T hese d em and s are su b m itted to the C ity C oun cil for review and ap p roval.
F I S C A L I M P A C T S
F u nd s are availab le for t he p aym en t of th e W arran t Reg i st ers, D i rec t D i sb ursem ent s, an d Payroll Reg isters in accord an ce with th e F Y 20 21 -22 op erating b u d g et.
A L T E R N A T I V E S
P rovid e altern ative d irection to staff.
AT TAC HM E NT S :
Description
Disbursement Register J anuary 2022
CHECK #CHECK DATE CHECK TYPE VENDOR #VENDOR NAME CHECK AMOUNT 37568 01/05/2022 PRINTED 777 COURT-ORDERED DEBT COLLECTIONS 152.52 37569 01/05/2022 PRINTED 99418 FRANCHISE TAX BOARD 92.66 37570 01/05/2022 PRINTED 627 STATE OF CALIFORNIA EMPLOYMENT DEVELOPMENT 406.00 37571 01/05/2022 PRINTED 521 COUPLAND, DONNA 259.35
37572 01/05/2022 PRINTED 1271 GARCIA, NATALIE 136.80
37573 01/05/2022 PRINTED 1237 GOODMAN, VANESSA 859.50
37574 01/05/2022 PRINTED 34941 GUZMAN, STACEY 333.60
37575 01/05/2022 PRINTED 56981 KENDALL, ANDREA 1,129.05 37576 01/05/2022 PRINTED 33021 PELLITTERI, CHRISTOPHER 59.85 37577 01/05/2022 PRINTED 5193 ZAILO, ROBERT 441.00
37578 01/05/2022 PRINTED 207 ADLERHORST INTERNATIONAL LLC 59.26 37579 01/05/2022 PRINTED 291 ADVANCE STORE CO, INC 459.99 37580 01/05/2022 PRINTED 1313 UNIVERSAL PROTECTION SERVICE, LP 32,180.56 37581 01/05/2022 PRINTED 120021 BRIGHTVIEW 3,050.00
37582 01/05/2022 PRINTED 195 CALIFORNIA NEWSPAPERS PARTNERSHIP 1,293.16 37583 01/05/2022 PRINTED 509 CITY OF ONTARIO 1,625.26
37584 01/05/2022 PRINTED 883 COMCATE SOFTWARE INC 8,974.00 37585 01/05/2022 PRINTED 1219 SAADALLAH NASSIM ELNABBOUT 2,150.00 37586 01/05/2022 PRINTED 16701 ENVIROMINE 181.25
37587 01/05/2022 PRINTED 4402 VARGAS, LUPE B 215.00
37588 01/05/2022 PRINTED 2435 EVERSOFT 742.28
37589 01/05/2022 PRINTED 58311 G H A TECHNOLOGIES 159.15 37590 01/05/2022 PRINTED 290 GRAINGER 833.80
37591 01/05/2022 PRINTED 329 HOLLIDAY ROCK CO INC 244.59 37592 01/05/2022 PRINTED 153 INLAND EMPIRE UTILITIES AGENCY 76,161.68 37593 01/05/2022 PRINTED 114501 INTERWEST CONSULTING GROUP 18,982.50 37594 01/05/2022 PRINTED 63221 J C I JONES CHEMICALS INC 4,423.81 37595 01/05/2022 PRINTED 529 KAISER FOUNDATION HEALTH PLAN 21,603.84 37596 01/05/2022 PRINTED 529 KAISER FOUNDATION HEALTH PLAN 32,081.28 37597 01/05/2022 PRINTED 529 KAISER FOUNDATION HEALTH PLAN 147,757.03 37598 01/05/2022 PRINTED 937 TURNER, KIMBERLY 12,900.00 37599 01/05/2022 PRINTED 4500 KOONTZ, CLYDE 1,179.51
37600 01/05/2022 PRINTED 96231 LABASTIDA CONSTRUCTION 978.50 37601 01/05/2022 PRINTED 91491 LIBRARY SYSTEMS & SERVICES LLC 15,960.90 37602 01/05/2022 PRINTED 104441 LOMA LINDA UNIV CHILDRENS HOSP 7,700.00 37603 01/05/2022 PRINTED 16385 MAIN STREET SIGNS 150.86 37604 01/05/2022 PRINTED 82811 MARK CHRISTOPHER AUTO CENTER 63.45 37605 01/05/2022 PRINTED 445 MATHISEN OIL CO INC 653.29 37606 01/05/2022 PRINTED 21341 MATT CHLOR INC 1,176.57
37607 01/05/2022 PRINTED 870 MCA DIRECT 255.34
37608 01/05/2022 PRINTED 1151 OLVERA, GREGORIO 188.56
37609 01/05/2022 PRINTED 6625 P F SERVICES INC 150.00
37610 01/05/2022 PRINTED 129071 POTTS, JAMES 1,990.59
37611 01/05/2022 PRINTED 231 PRESTIGIOUS INVESTIGATIVE SERVICES 5,000.00 37612 01/05/2022 PRINTED 1262 RUMBLE FISH PEST CONTROL INC 300.00 37613 01/05/2022 PRINTED 606 SAN BERNARDINO COUNTY SHERIFF'S 162.00 37614 01/05/2022 PRINTED 11671 SAN BERNARDINO COUNTY 332.73 37615 01/05/2022 PRINTED 26331 SENDLDORFER, BRIAN 26.00 City of Upland
Accounts Payable Check Reconciliation Register
01/01/2022 - 01/31/2022
Prepared By: Erin Myers Page 1 of 7 4:13 PMPage 3 of 9
CHECK #CHECK DATE CHECK TYPE VENDOR #VENDOR NAME CHECK AMOUNT 37616 01/05/2022 PRINTED 507 SILVER & WRIGHT LLP 8,402.20 37617 01/05/2022 PRINTED 107 SITEONE LANDSCAPE SUPPLY HOLDING LLC 781.38 37618 01/05/2022 PRINTED 18062 SOFFA ELECTRIC INC 480.00 37619 01/05/2022 PRINTED 687 SONG, PAUL 37.13
37620 01/05/2022 PRINTED 16607 STAPLES BUSINESS ADVANTAGE 192.11 37621 01/05/2022 PRINTED 678 SUN BADGE COMPANY INC 1,057.91 37622 01/05/2022 PRINTED 11583 THOMPSON PLUMBING SUPPLY 119.64 37623 01/05/2022 PRINTED 540 TICOR TITLE CO OF CA 500.00 37624 01/05/2022 PRINTED 1196 TIDY DIESEL TANKS 1,840.00 37625 01/05/2022 PRINTED 18181 TIERRA WEST ADVISORS LLC 3,275.00 37626 01/05/2022 PRINTED 134091 TYLER BUSINESS FORMS 448.58 37627 01/05/2022 PRINTED 112201 WAUSAU TILE CO 473.19
37628 01/05/2022 PRINTED 14050 WILLDAN FINANCIAL SERVICES 15,453.35 37629 01/05/2022 PRINTED 693 WYMAN, AARON 392.40
37630 01/12/2022 PRINTED 291 ADVANCE STORE CO, INC 1,341.02 37631 01/12/2022 PRINTED 1243 AMERICAN GLOBAL SECURITY, INC 11,588.65 37632 01/12/2022 PRINTED 131971 ANNEALTA GROUP 17,347.50 37633 01/12/2022 PRINTED 6683 ATMAA INC 2,720.00
37634 01/12/2022 PRINTED 120021 BRIGHTVIEW 3,050.00
37635 01/12/2022 PRINTED 195 CALIFORNIA NEWSPAPERS PARTNERSHIP 13,120.65 37636 01/12/2022 PRINTED 1273 SOUTHWEST CONCRETE PRODUCTS 30.17 37637 01/12/2022 PRINTED 83401 CARL WARREN & CO 3,968.00 37638 01/12/2022 PRINTED 448 CINTAS CORPORATION 2,533.81 37639 01/12/2022 PRINTED 163 CLINICAL LABORATORY OF SAN BERNARDINO, INC 266.00 37640 01/12/2022 PRINTED 15814 CRIME SCENE STERI-CLEAN, LLC 850.00 37641 01/12/2022 PRINTED 4402 VARGAS, LUPE B 210.00
37642 01/12/2022 PRINTED 97141 EUROFINS EATON ANALYTICAL INC 4,676.00 37643 01/12/2022 PRINTED 10485 EXPERIAN 77.00
37644 01/12/2022 PRINTED 96251 FORD OF UPLAND 141.18
37645 01/12/2022 PRINTED 78 FRONTIER 68.49
37646 01/12/2022 PRINTED 78 FRONTIER 92.61
37647 01/12/2022 PRINTED 78 FRONTIER 121.54
37648 01/12/2022 PRINTED 78 FRONTIER 340.00
37649 01/12/2022 PRINTED 78 FRONTIER 550.00
37650 01/12/2022 PRINTED 78 FRONTIER 561.16
37651 01/12/2022 PRINTED 78 FRONTIER 1,238.40
37652 01/12/2022 PRINTED 78 FRONTIER 1,500.44
37653 01/12/2022 PRINTED 5661 G & M BUSINESS INTERIORS 1,055.08 37654 01/12/2022 PRINTED 290 GRAINGER 3,229.44
37655 01/12/2022 PRINTED 1171 CLEMENT, RICHARD N 13,800.00 37656 01/12/2022 PRINTED 21921 HIGH DESERT BACKFLOW - AAA ACTION BACKFLOW, LLC 5,527.00 37657 01/12/2022 PRINTED 329 HOLLIDAY ROCK CO INC 802.23 37658 01/12/2022 PRINTED 16340 INFOSEND INC 1,858.34
37659 01/12/2022 PRINTED 83731 J & G ADVERTISING SPECIALTIES 5,255.15 37660 01/12/2022 PRINTED 48371 JEEP CHRYSLER OF ONTARIO 286.59 37661 01/12/2022 PRINTED 80561 KEENAN & ASSOCIATES 6,745.33 37662 01/12/2022 PRINTED 937 TURNER, KIMBERLY 1,500.00
37663 01/12/2022 PRINTED 410 LEININGER & SHORT 271.37
37664 01/12/2022 PRINTED 824 MK CONSULTING 1,979.82
37665 01/12/2022 PRINTED 117121 NUCKLES OIL COMPANY INC 29,592.34 37666 01/12/2022 PRINTED 4509 PARKHOUSE TIRE INC 814.10 37667 01/12/2022 PRINTED 250 PICAZO, MELECIO 99.49
37668 01/12/2022 PRINTED 1731 R E S ENVIRONMENTAL INC 1,280.00 Prepared By: Erin Myers Page 2 of 7 4:13 PMPage 4 of 9
CHECK #CHECK DATE CHECK TYPE VENDOR #VENDOR NAME CHECK AMOUNT 37669 01/12/2022 PRINTED 11671 SAN BERNARDINO COUNTY 12,899.59 37670 01/12/2022 PRINTED 131121 SHRED-IT USA JV LLC 105.98 37671 01/12/2022 PRINTED 637 SMART & FINAL IRIS CO 710.83 37672 01/12/2022 PRINTED 43011 SMITH-EMERY LABORATORIES 895.65 37673 01/12/2022 PRINTED 18062 SOFFA ELECTRIC INC 480.00 37674 01/12/2022 PRINTED 16607 STAPLES BUSINESS ADVANTAGE 521.40 37675 01/12/2022 PRINTED 90177 SWRCB - DWSRF ACCOUNTING OFFICE 1,110.00 37676 01/12/2022 PRINTED 90177 SWRCB - DWSRF ACCOUNTING OFFICE 35,333.00 37677 01/12/2022 PRINTED 90177 SWRCB - DWSRF ACCOUNTING OFFICE 63,876.96 37678 01/12/2022 PRINTED 2439 T K E ENGINEERING INC 24,667.50 37679 01/12/2022 PRINTED 11000 TEAGUE, LON 553.60
37680 01/12/2022 PRINTED 21671 TIME WARNER CABLE 63.34
37681 01/12/2022 PRINTED 21671 TIME WARNER CABLE 100.35 37682 01/12/2022 PRINTED 21671 TIME WARNER CABLE 155.11 37683 01/12/2022 PRINTED 21671 TIME WARNER CABLE 669.00 37684 01/12/2022 PRINTED 21671 TIME WARNER CABLE 1,013.35 37685 01/12/2022 PRINTED 21671 TIME WARNER CABLE 1,313.30 37686 01/12/2022 PRINTED 62321 U.S. TELEPACIFIC CORP 869.69 37687 01/12/2022 PRINTED 133941 VERIZON 1,471.96
37688 01/12/2022 PRINTED 14735 VERIZON WIRELESS 40.01
37689 01/12/2022 PRINTED 14735 VERIZON WIRELESS 81.06
37690 01/12/2022 PRINTED 14735 VERIZON WIRELESS 120.03
37691 01/12/2022 PRINTED 14735 VERIZON WIRELESS 803.32
37692 01/12/2022 PRINTED 14735 VERIZON WIRELESS 4,557.66 37693 01/12/2022 PRINTED 134051 WEST COAST LIGHTS AND SIRENS 622.51 37694 01/19/2022 PRINTED 15750 AFLAC PREMIUM HOLDING 1,263.60 37695 01/19/2022 PRINTED 132551 AMERICAN FIDELITY ASSURANCE 5,941.62 37696 01/19/2022 PRINTED 6109 AMERICAN HERITAGE LIFE INS CO 186.18 37697 01/19/2022 PRINTED 1123 HYATT LEGAL PLANS, INC 189.00 37698 01/19/2022 PRINTED 16823 PRE PAID LEGAL SVC, INC 105.65 37699 01/19/2022 PRINTED 889 PRUDENTIAL INSURANCE COMPANY OF AMERICA 27.08 37700 01/19/2022 PRINTED 777 COURT-ORDERED DEBT COLLECTIONS 152.52 37701 01/19/2022 PRINTED 99418 FRANCHISE TAX BOARD 92.66 37702 01/19/2022 PRINTED 295 INLAND EMPIRE UNITED WAY 26.00 37703 01/19/2022 PRINTED 627 STATE OF CALIFORNIA EMPLOYMENT DEVELOPMENT 406.00 37704 01/19/2022 PRINTED 1344 BARBER, SONYA 125.00
37705 01/19/2022 PRINTED 1342 GARCIA, CYNTHIA LEAL 228.00 37706 01/19/2022 PRINTED 34941 GUZMAN, STACEY 195.00
37707 01/19/2022 PRINTED 674 HAJJ, GEORGE 345.00
37708 01/19/2022 PRINTED 119151 HARDIN, SHARON 1,725.00 37709 01/19/2022 PRINTED 1343 LANCE, BRETT 113.00
37710 01/19/2022 PRINTED 1341 MARTINEZ, JOSHUA 1,260.00 37711 01/19/2022 PRINTED 13731 MARTINEZ, ROSEMARIE 345.00 37712 01/19/2022 PRINTED 287 SMIDERLE, RICHARD 130.00
37713 01/19/2022 PRINTED 297 WILLIAMS, MARCI 1,725.00
37714 01/19/2022 PRINTED 48681 FORT, KELA 1,147.71
37715 01/19/2022 PRINTED 446 GENDREAU, JEREMY 50.00
37716 01/19/2022 PRINTED 1338 LEI, TONYA 1,969.45
37717 01/19/2022 PRINTED 680 MCCULLOUGH, ANDREW 1,028.97 37718 01/19/2022 PRINTED 1339 NEAL, KEVIN 197.00
37719 01/19/2022 PRINTED 969 SALCIDO, HECTOR 283.00
37720 01/19/2022 PRINTED 98971 WARNER, MARC 125.00
37721 01/19/2022 PRINTED 44891 FARLEY, SANDRA 1,552.50
Prepared By: Erin Myers Page 3 of 7 4:13 PMPage 5 of 9
CHECK #CHECK DATE CHECK TYPE VENDOR #VENDOR NAME CHECK AMOUNT 37722 01/19/2022 PRINTED 1237 GOODMAN, VANESSA 515.70
37723 01/19/2022 PRINTED 1270 KLEE, JILLIAN 130.20
37724 01/19/2022 PRINTED 291 ADVANCE STORE CO, INC 950.21 37725 01/19/2022 PRINTED 12564 ALL CITY MANAGEMENT SERVICES INC 13,776.18 37726 01/19/2022 PRINTED 59121 ARMORCAST 43,877.17
37727 01/19/2022 PRINTED 289 ARROW TRAILER SUPPLIES INC 89.46 37728 01/19/2022 PRINTED 12378 ATKINSON ANDELSON LOYA RUDD 22,790.05 37729 01/19/2022 PRINTED 862 BADGER METER INC 4,142.08
37730 01/19/2022 PRINTED 819 BRINKS, INC 762.71
37731 01/19/2022 PRINTED 363 CHINO MOWER & ENGINE SERVICE 75.81 37732 01/19/2022 PRINTED 118781 CARD INTEGRATORS CORPORATION 250.00 37733 01/19/2022 PRINTED 366 CRAFCO INC 791.86
37734 01/19/2022 PRINTED 4696 CUCAMONGA VALLEY WATER DISTRIC 34.55 37735 01/19/2022 PRINTED 4696 CUCAMONGA VALLEY WATER DISTRIC 36.46 37736 01/19/2022 PRINTED 16636 DELL MARKETING LP 1,706.89 37737 01/19/2022 PRINTED 1153 DENCO LIEN SALES, INC 152.00 37738 01/19/2022 PRINTED 124 DEPARTMENT OF JUSTICE 490.00 37739 01/19/2022 PRINTED 121361 DOSSIER SYSTEMS 7,631.63 37740 01/19/2022 PRINTED 4402 VARGAS, LUPE B 280.00
37741 01/19/2022 PRINTED 78 FRONTIER 670.10
37742 01/19/2022 PRINTED 290 GRAINGER 36.16
37743 01/19/2022 PRINTED 1335 GREYSTONE SPECIALITIES, INC 2,909.25 37744 01/19/2022 PRINTED 158 HD SUPPLY FACILITIES MAINTENANCE LTD 156.18 37745 01/19/2022 PRINTED 90227 HEARD'S INVESTIGATIONS AND POLYGRAPH, LLC 175.00 37746 01/19/2022 PRINTED 329 HOLLIDAY ROCK CO INC 572.15 37747 01/19/2022 PRINTED 36271 INLAND EMPIRE PRINTING 460.09 37748 01/19/2022 PRINTED 48371 JEEP CHRYSLER OF ONTARIO 269.12 37749 01/19/2022 PRINTED 937 TURNER, KIMBERLY 3,900.00
37750 01/19/2022 PRINTED 3020 LAW ENFORCEMENT MEDICAL SVCS 2,370.00 37751 01/19/2022 PRINTED 1331 LAWRENCE ROLL UP DOORS, INC 3,130.03 37752 01/19/2022 PRINTED 410 LEININGER & SHORT 580.06
37753 01/19/2022 PRINTED 445 MATHISEN OIL CO INC 795.90 37754 01/19/2022 PRINTED 7816 MR T'S TOWING INC 2,250.00 37755 01/19/2022 PRINTED 473 MUNICIPAL MAINTENANCE EQUIPMENT INC 1,248.80 37756 01/19/2022 PRINTED 203 MV CHENG & ASSOCIATE 3,093.75 37757 01/19/2022 PRINTED 30971 OCCUPATIONAL HEALTH CENTERS 143.00 37758 01/19/2022 PRINTED 4509 PARKHOUSE TIRE INC 5,430.46 37759 01/19/2022 PRINTED 4341 PRINTING RESOURCES OF SO CA 1,429.08 37760 01/19/2022 PRINTED 300 PVP COMMUNICATIONS 1,003.39 37761 01/19/2022 PRINTED 349 RAIN MASTER IRRIGATION SYSTEMS 245.85 37762 01/19/2022 PRINTED 601 SAN ANTONIO WATER CO 67.77 37763 01/19/2022 PRINTED 606 SAN BERNARDINO COUNTY SHERIFF'S 1,120.00 37764 01/19/2022 PRINTED 20171 SAN BERNARDINO COUNTY SHERIFF 300.00 37765 01/19/2022 PRINTED 99141 SONSRAY MACHINERY LLC 82.17 37766 01/19/2022 PRINTED 16607 STAPLES BUSINESS ADVANTAGE 2,650.38 37767 01/19/2022 PRINTED 625 STILES ANIMAL REMOVAL 400.00 37768 01/19/2022 PRINTED 972 THE LEW EDWARDS GROUP 6,000.00 37769 01/19/2022 PRINTED 11583 THOMPSON PLUMBING SUPPLY 784.24 37770 01/19/2022 PRINTED 626 TMP ENTERPRISES, LLV 1,000.00 37771 01/19/2022 PRINTED 125411 TYLER TECHNOLOGIES INC 33,075.00 37772 01/19/2022 PRINTED 14735 VERIZON WIRELESS 40.01
37773 01/19/2022 PRINTED 14735 VERIZON WIRELESS 331.72
37774 01/19/2022 PRINTED 14735 VERIZON WIRELESS 2,738.26 Prepared By: Erin Myers Page 4 of 7 4:13 PMPage 6 of 9
CHECK #CHECK DATE CHECK TYPE VENDOR #VENDOR NAME CHECK AMOUNT 37775 01/19/2022 PRINTED 14735 VERIZON WIRELESS 5,462.43 37776 01/19/2022 PRINTED 760 WATER FACILITIES AUTHORITY 318,052.97 37777 01/19/2022 PRINTED 1725 WEST COAST ARBORISTS INC 10,520.55 37778 01/19/2022 PRINTED 1261 WEX HEALTH 326.70
37779 01/19/2022 PRINTED 14050 WILLDAN FINANCIAL SERVICES 8,800.00 37780 01/19/2022 PRINTED 999999 CHRISTINE ALLEN 79.00
37781 01/19/2022 PRINTED 999999 EDDIE VIEZCAS 100.00
37782 01/19/2022 PRINTED 999999 EVELYN VIENS 100.00
37783 01/19/2022 PRINTED 999999 JENNIFER YANDELL 28.45
37784 01/19/2022 PRINTED 999999 KEITH CUMMINGS 79.00
37785 01/19/2022 PRINTED 999999 ROBERT MOXLEY 100.00
37786 01/19/2022 PRINTED 999999 THOMAS JAMES 100.00
37787 01/26/2022 PRINTED 291 ADVANCE STORE CO, INC 207.11 37788 01/26/2022 PRINTED 3 AIRGAS USA LLC 679.45
37789 01/26/2022 PRINTED 131971 ANNEALTA GROUP 6,545.00 37790 01/26/2022 PRINTED 699 APPLIED CONCEPTS 4,872.46
37791 01/26/2022 PRINTED 500 ARTESIA SAWDUST PRODUCTS INC 220.84 37792 01/26/2022 PRINTED 119661 BEST BEST & KRIEGER LLP 41,364.31 37793 01/26/2022 PRINTED 195 CALIFORNIA NEWSPAPERS PARTNERSHIP 1,055.45 37794 01/26/2022 PRINTED 83401 CARL WARREN & CO 3,776.53 37795 01/26/2022 PRINTED 12511 CCSINTERACTIVE 125.00
37796 01/26/2022 PRINTED 118781 CARD INTEGRATORS CORPORATION 1,965.00 37797 01/26/2022 PRINTED 448 CINTAS CORPORATION 2,733.81 37798 01/26/2022 PRINTED 448 CINTAS CORPORATION #150 1,306.51 37799 01/26/2022 PRINTED 111301 CITY CLERK MANAGEMENT SERVICES 760.00 37800 01/26/2022 PRINTED 966 COMMERCIAL DOOR METAL SYSTEMS, INC 358.81 37801 01/26/2022 PRINTED 235 COMMSYS INC 1,838.00
37802 01/26/2022 PRINTED 4696 CUCAMONGA VALLEY WATER DISTRIC 42.19 37803 01/26/2022 PRINTED 1153 DENCO LIEN SALES, INC 610.00 37804 01/26/2022 PRINTED 4402 VARGAS, LUPE B 360.00
37805 01/26/2022 PRINTED 2435 EVERSOFT 1,046.25
37806 01/26/2022 PRINTED 3266 FOOTHILL FAMILY SHELTER 6,720.00 37807 01/26/2022 PRINTED 1212 HARDY & HARPER, INC 95,638.50 37808 01/26/2022 PRINTED 329 HOLLIDAY ROCK CO INC 748.32 37809 01/26/2022 PRINTED 16340 INFOSEND INC 7,793.65
37810 01/26/2022 PRINTED 5403 INLAND VALLEY EMERGENCY PET 745.00 37811 01/26/2022 PRINTED 114501 INTERWEST CONSULTING GROUP 12,780.00 37812 01/26/2022 PRINTED 529 KAISER FOUNDATION HEALTH PLAN 29,489.58 37813 01/26/2022 PRINTED 529 KAISER FOUNDATION HEALTH PLAN 34,268.16 37814 01/26/2022 PRINTED 529 KAISER FOUNDATION HEALTH PLAN 139,718.97 37815 01/26/2022 PRINTED 937 TURNER, KIMBERLY 15,600.00 37816 01/26/2022 PRINTED 26101 KONICA MINOLTA 4,369.27
37817 01/26/2022 PRINTED 53241 KONICA MINOLTA BUSINESS SOLUTIONS 143.44 37818 01/26/2022 PRINTED 53781 LEAD TECH ENVIRONMENTAL 684.00 37819 01/26/2022 PRINTED 91491 LIBRARY SYSTEMS & SERVICES LLC 11,895.82 37820 01/26/2022 PRINTED 56971 LMWS INC 8,492.14
37821 01/26/2022 PRINTED 122601 LOWE'S 5,470.39
37822 01/26/2022 PRINTED 82811 MARK CHRISTOPHER AUTO CENTER 365.64 37823 01/26/2022 PRINTED 118291 MAUREEN KANE & ASSOCIATES, INC 1,500.00 37824 01/26/2022 PRINTED 1332 MERIDIAN RAPID DEFENSE GROUP 6,723.60 37825 01/26/2022 PRINTED 345 MK SMITH CHEVROLET 27,967.45 37826 01/26/2022 PRINTED 1315 MORALES, BRANDON 56.99
37827 01/26/2022 PRINTED 16233 MPOWER COMMUNICATIONS 233.37 Prepared By: Erin Myers Page 5 of 7 4:13 PMPage 7 of 9
CHECK #CHECK DATE CHECK TYPE VENDOR #VENDOR NAME CHECK AMOUNT 37828 01/26/2022 PRINTED 83491 NOBEL SYSTEMS 10,000.00
37829 01/26/2022 PRINTED 788 O F WOLFINBARGER INC 133.61 37830 01/26/2022 PRINTED 4509 PARKHOUSE TIRE INC 2,036.35 37831 01/26/2022 PRINTED 10638 RICHARDS, WATSON & GERSHON 1,019.50 37832 01/26/2022 PRINTED 67381 ROUTE 66 CAR WASH INC 755.00 37833 01/26/2022 PRINTED 1321 SHEWAK & LAJWANTI INTERNATIONAL INC 28,602.00 37834 01/26/2022 PRINTED 3662 SAFETY-KLEEN SYSTEMS, INC 222.06 37835 01/26/2022 PRINTED 601 SAN ANTONIO WATER CO 2,776.00 37836 01/26/2022 PRINTED 601 SAN ANTONIO WATER CO 188,558.37 37837 01/26/2022 PRINTED 601 SAN ANTONIO WATER CO 363,401.60 37838 01/26/2022 PRINTED 222 SAN BERNARDINO COUNTY 500.00 37839 01/26/2022 PRINTED 1013 SHAW HR CONSULTING 402.50 37840 01/26/2022 PRINTED 1337 STANDARD INSURANCE COMPANY 2,650.60 37841 01/26/2022 PRINTED 16607 STAPLES BUSINESS ADVANTAGE 288.05 37842 01/26/2022 PRINTED 126761 THE LINCOLN NATIONAL LIFE INS 2,789.42 37843 01/26/2022 PRINTED 11583 THOMPSON PLUMBING SUPPLY 43.46 37844 01/26/2022 PRINTED 21671 TIME WARNER CABLE 119.98 37845 01/26/2022 PRINTED 21671 TIME WARNER CABLE 129.98 37846 01/26/2022 PRINTED 21671 TIME WARNER CABLE 711.37 37847 01/26/2022 PRINTED 98 TRITECH SOFTWARE SYSTEMS 114,945.52 37848 01/26/2022 PRINTED 9321 TSENG, JIM 101.50
37849 01/26/2022 PRINTED 311 U S ARMOR CORPORATION 1,731.30 37850 01/26/2022 PRINTED 3557 UNDERGROUND SERVICE ALERT 237.70 37851 01/26/2022 PRINTED 990 VEOLIA NORTH AMERICA, INC 105.23 37852 01/26/2022 PRINTED 14735 VERIZON WIRELESS 65.00
37853 01/26/2022 PRINTED 14735 VERIZON WIRELESS 200.05
37854 01/26/2022 PRINTED 14735 VERIZON WIRELESS 262.67
37855 01/26/2022 PRINTED 14735 VERIZON WIRELESS 320.08
37856 01/26/2022 PRINTED 14735 VERIZON WIRELESS 321.64
37857 01/26/2022 PRINTED 14735 VERIZON WIRELESS 341.66
37858 01/26/2022 PRINTED 14735 VERIZON WIRELESS 1,315.99 37859 01/26/2022 PRINTED 14735 VERIZON WIRELESS 7,056.90 37860 01/26/2022 PRINTED 760 WATER FACILITIES AUTHORITY 75,627.64 37861 01/26/2022 PRINTED 857 WATERLINE TECHNOLOGIES, INC 958.98 37862 01/26/2022 PRINTED 1725 WEST COAST ARBORISTS INC 1,086.15 37863 01/26/2022 PRINTED 1282 WESTERN ALLIANCE BUSINESS TRUST 85,817.03 37864 01/26/2022 PRINTED 999999 JULIE JOHNSON 79.00
37865 01/26/2022 PRINTED 999999 NEW STANDARD EQUITIES, INC 150.00 37866 01/26/2022 PRINTED 999999 SHU-CHIN CARSON 14.99
37867 01/26/2022 PRINTED 999999 SUPING GENG 700.00
PRINTED CHECKS (300 COUNT)2,653,668.87$
10322001 01/03/2022 MANUAL 754 PUBLIC AGENCY COALITION ENTERPRISE 87,252.22 10322002 01/03/2022 MANUAL 960 MUNICIPAL DENTAL POOL 25,219.87 10322003 01/03/2022 MANUAL 114711 METROPOLITAN LIFE INSURANCE CO 3,676.00 10322004 01/03/2022 MANUAL 114711 METROPOLITAN LIFE INSURANCE CO 2,117.40 10322005 01/03/2022 MANUAL 114711 METROPOLITAN LIFE INSURANCE CO 840.00 10422001 01/04/2022 MANUAL 32091 SOUTHERN CALIF EDISON CO 143,753.19 10422002 01/04/2022 MANUAL 43651 U S BANK NATIONAL ASSN 27,970.88 10422003 01/04/2022 MANUAL 65181 CALPERS 30,549.36
10422004 01/04/2022 MANUAL 65181 CALPERS 151,177.24
10422005 01/04/2022 MANUAL 132551 AMERICAN FIDELITY ASSURANCE 3,965.28 10422006 01/04/2022 MANUAL 733 MASSACHUSETTS MUTUAL LIFE INSURANCE CO.50.00 Prepared By: Erin Myers Page 6 of 7 4:13 PMPage 8 of 9
CHECK #CHECK DATE CHECK TYPE VENDOR #VENDOR NAME CHECK AMOUNT 10522001 01/05/2022 MANUAL 543 SOUTHERN CALIF GAS COMPANY 7,899.83 10522002 01/05/2022 MANUAL 80561 KEENAN & ASSOCIATES 225,976.62 10522003 01/05/2022 MANUAL 91491 LIBRARY SYSTEMS & SERVICES LLC 112,392.00 10722002 01/07/2022 MANUAL 83401 CARL WARREN & CO 40,524.86 11222001 01/12/2022 MANUAL 91491 LIBRARY SYSTEMS & SERVICES LLC 112,392.00 11222002 01/12/2022 MANUAL 153 INLAND EMPIRE UTILITIES AGENCY 594,818.24 11322001 01/13/2022 MANUAL 83401 CARL WARREN & CO 49,480.45 11322002 01/13/2022 MANUAL 132551 AMERICAN FIDELITY ASSURANCE 7,362.56 11322003 01/13/2022 MANUAL 125761 CITY EMPLOYEE ASSOCIATES 299.00 11322004 01/13/2022 MANUAL 618 ICMA-RC 51,455.39
11322005 01/13/2022 MANUAL 621 KAREN LONG 187.50
11322006 01/13/2022 MANUAL 441 MIDAMERICA ADMIN & RETIREMENT SOLUTIONS, LLC 674.47 11322007 01/13/2022 MANUAL 622 UPLAND CITY EMPLOYEE ASSOCIATION 750.00 11322008 01/13/2022 MANUAL 736 UPLAND POLICE MANAGEMENT ASSN 928.50 11322009 01/13/2022 MANUAL 737 UPLAND POLICE OFFICERS ASSN 4,752.50 11422001 01/14/2022 MANUAL 32091 SOUTHERN CALIF EDISON CO 78,369.61 11422002 01/14/2022 MANUAL 624 DEPT OF THE TREASURY 350.00 11922001 01/19/2022 MANUAL 65181 CALPERS 155,030.28
12122001 01/21/2022 MANUAL 733 MASSACHUSETTS MUTUAL LIFE INSURANCE CO.76,361.65 12122002 01/21/2022 MANUAL 116231 NEOPOST USA INC 5,000.00 12122003 01/21/2022 MANUAL 441 MIDAMERICA ADMIN & RETIREMENT SOLUTIONS, LLC 28,395.15 12122004 01/21/2022 MANUAL 132551 AMERICAN FIDELITY ASSURANCE 3,620.32 12622001 01/26/2022 MANUAL 83401 CARL WARREN & CO 37,234.92 12622002 01/26/2022 MANUAL 1308 LOCAL AGENCY INVESTMENT AGENCY - LAIF 5,000,000.00 12622003 01/26/2022 MANUAL 114711 METROPOLITAN LIFE INSURANCE CO 3,584.62 12622004 01/26/2022 MANUAL 114711 METROPOLITAN LIFE INSURANCE CO 2,135.29 12622005 01/26/2022 MANUAL 114711 METROPOLITAN LIFE INSURANCE CO 833.56 12622006 01/26/2022 MANUAL 960 MUNICIPAL DENTAL POOL 25,420.27 12622007 01/26/2022 MANUAL 754 PUBLIC AGENCY COALITION ENTERPRISE 94,418.44 12722001 01/27/2022 MANUAL 132551 AMERICAN FIDELITY ASSURANCE 4,322.99 12722002 01/27/2022 MANUAL 125761 CITY EMPLOYEE ASSOCIATES 287.50 12722003 01/27/2022 MANUAL 618 ICMA-RC 1,787.50
12722004 01/27/2022 MANUAL 621 KAREN LONG 187.50
12722005 01/27/2022 MANUAL 441 MIDAMERICA ADMIN & RETIREMENT SOLUTIONS, LLC 879.02 12722006 01/27/2022 MANUAL 622 UPLAND CITY EMPLOYEE ASSOCIATION 770.00 12722007 01/27/2022 MANUAL 736 UPLAND POLICE MANAGEMENT ASSN 928.50 12722008 01/27/2022 MANUAL 737 UPLAND POLICE OFFICERS ASSN 4,752.50 12822001 01/28/2022 MANUAL 624 DEPT OF THE TREASURY 350.00 12822002 01/28/2022 MANUAL 733 MASSACHUSETTS MUTUAL LIFE INSURANCE CO.45,910.13 MANUAL CHECKS (50 COUNT)7,257,395.11$
36863 11/03/2021 VOID 17606 BENTLEY SYSTEMS INC (7,382.00) 37166 11/24/2021 VOID 392 WAXIE SANITARY SUPPLY (303.28) 37477 12/22/2021 VOID 82811 MARK CHRISTOPHER AUTO CENTER (95.54) VOIDED CHECKS (3 COUNT)(7,780.82)$
PRINTED CHECKS (300 COUNT)2,653,668.87$
MANUAL CHECKS (50 COUNT)7,257,395.11$
VOIDED CHECKS (3 COUNT)(7,780.82)$
PRINTED & MANUAL CHECK TOTALS 9,911,063.98$
Prepared By: Erin Myers Page 7 of 7 4:13 PMPage 9 of 9
S T A F F R E P O R T
I T E M N O . 10.G .
D A T E :Feb ruary 14 , 20 22
T O :M A YO R A N D C I T Y C O U N C I L
F R O M : M I C H A E L B L A Y, C I T Y M A N A G E R P R E P A R E D B Y : B R A D E N Y U, P U B L I C W O R K S D I R E C TO R
A L A N F R E N C H , P R I N C I PA L E N G I N E E R S U B J E C T :P R O F E S S I O N A L S E R V I C E S A G R E E M E N T TO P R E PA R E T H E LO C A L
R O A D S A F E T Y P L A N
R E C O M M E N D E D A C T I O N
I t is recom m end ed that th e C ity C oun cil accep t $58 ,50 0 in g ran t fu nd in g from the C altran s D ivision of L ocal A ss is tan ce; ap p rove a p rofessional s ervi ces ag reem en t w it h K O A C orp oration, I n c. for th e p rep aration of t h e Local Road S afet y P lan; and au th ori ze the C i ty M an ag er to execu te the ag reem ent and any fu tu re am end m en ts w ithin the C ity M an ag er's authority.
G O A L S T A T E M E N T
Th e p rop osed ac ti on su p p orts t he C it y g oal t o p rovid e reliab le, ti m el y an d safe traffic flow for th e traveling p u b lic.
B A C K G R O U N D
P u rsuan t to t h e C it y of U p lan d 's g oal in p rom oting t raffi c s afety b y havi ng a p lan to ad d ress in tersections w hi ch n eed at ten ti on, t h e C ity n eed s a t im ely an d com p rehen sive p l an to ad d ress t raffic relat ed issu es. T h e L ocal Road S afety P lan (L R S P ) d oes that b y g ath eri n g d ata and an al yzi n g i t to d evelop ing a p lan t o ad d ress intersection s an d sec ti on s of road w ays w ithin th e C i ty. T he L R S P wi ll p roved a l is t of n eed ed p roject s and p riorities t o b ri n g exist in g road s and i nt ersect ion s in to conform an ce w it h the C alifornia M an u al of U n iform Traffic C on trol D evices, C altran s, an d the C ity's stand ard req uirem ents.
Th e L R S P is an integ ral p art of t he C ity's g oal t o ad d ress safet y on ou r st reet s. T he P ub lic Works D ep art m en t’s L and D evelop m en t and Traffic S ec ti on wi ll u se t he L R S P to d evelop p rojects, ap p ly for g ran t fu n d in g an d track p rog ress . T h e D ep artm ent’s g oal i s to p rovid e
effective m anag em en t of traffic an d land u s e-rel ated activit ies in volvi n g road rig h t -of-w ay in ord er t o en h an c e an d m ain tai n q u al it y of l ife i n th e com m u ni ty. Th e L S R P w i ll also b e u s ed to im p lem en t traffic control m easures.
I S S U E S /A N A L Y S I S
O n J uly 26 , 20 21 , th e C i ty ap p l ied for fu n d in g t o p rep are a L ocal Road S afety P lan from the C altrans D ivision of Local A ssistan ce an d on S ep tem b er 2, 2 02 1, the C ity w as n otified th at ou r p roject fu nd in g w as ap p roved . A s a result, w e p rep ared a Req u es t for P rop osal (R F P ) to p rep are th e L R S P.
O n D ec em b er 13 , 2 02 1, th e C ity p os ted a R F P for L ocal Road S afet y P lan S ervi ces on t he C ity w eb site and sen t it t o loc al fi rm s. Th e C ity received t hree p rop os als b y t h e d ead l in e of J an uary 3 , 2 02 2. T he p rop os als w ere review ed and g rad ed as d es crib ed in t h e R F P b y a p an el of C it y s taff an d t h e p anel ranked t he p rop os als t h en averag ed th e ranki ng s (see Ran kin g Resu lts). T he h ig hest rank q ualified firm w as K O A .
Th e t erm of the ag reem en t w il l com m ence on Feb ruary 1 4, 20 22 for a t otal con tract am ou n t of $6 1,7 45 . I f it is m ut ual ly ag reeab le to th e C on su lt ant an d t he C ity, t he term s of the A g reem ent m ay b e exten d ed b y am end m en t shou ld p rocessing and d ead lines b e extend ed .
F I S C A L I M P A C T S
Th e C it y w as ap p roved for up to $5 8,5 00 to p rep are a Loc al Road S afety P lan from the C altrans D i vis ion of Loc al A ssistan ce. I n ad d ition, th e C ity's F i sc al Year 2 02 1-2 2 ad op ted b u d g et con tai n s su fficien t fu n d s to cover th e rem ain in g con tract am ou nt i n accou nt 10 1-5 30 2- 52 58 .
A L T E R N A T I V E S
P rovid e altern ative d irection to staff.
AT TAC HM E NT S :
Description
Approved L RS P funded Applications
Professional S ervices Agreement
Consultant Ranking
From:Ke, Richard@DOT on behalf of HSIP Do Not Reply@DOT To:[email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; Alan French; [email protected] Cc:Wulff, Darlene M@DOT; Zhang, Xi@DOT; Garabedian Jr, Charles E@DOT; Moreno-Castaneda, Eduardo@DOT; Avila, Leslie@DOT; Beshay Tadrous, Mirna@DOT; Nghiem, Anh@DOT Subject:LRSP funding Applications Approved on 8/2/2021
Date:Monday, August 2, 2021 5:40:07 PM
WARNING: External email. Please verify sender before opening attachments or clicking on links.
Dear LRSP Applicants:
You submitted the LRSP applications between 6/21/2021 and 8/2/2021 for developing a Local Roadway Safety Plan (LRSP). Your applications have been selected for funding and implementation.
Below a list of the funded applicants:
Caltrans
District Agency Name
3 Davis
3 Marysville
4 Albany
4 Benicia
4 Burlingame
4 Pacifica
6 Hanford
8 San Bernardino County
8 Upland
12 Placentia
For a complete list of all LRSP projects selected for funding, please go to https://dot.ca.gov/programs/local-assistance/fed-and-state-programs/highway-safety- improvement-program/local-roadway-safety-plans . Note: it may take a few days for the updated list to be uploaded to the web page.
Your agency may now proceed to implement the analysis/report-only project. Your next step is to submit a funding allocation request to your District Local Assistant Engineer (DLAE). Please note NO expenditures are eligible for reimbursement prior to the funding being allocated to your project. For more information regarding LRSP project implementation, please visit our LRSP/SSARP website.
Please do not reply to this email address. If you have questions, please contact your DLAE.
Local Highway Safety Improvement Program (HSIP),
Caltrans Division of Local Assistance
Links:
Highway Safety Improvement Program (HSIP);
HSIP project delivery requirements and project status;
Local Roadway Safety Plan (LRSP) and Systemic Safety Analysis Report Program (SSARP).
1 CITY OF UPLAND
PROFESSIONAL SERVICES AGREEMENT
This Agreement is made and entered into as of February 14, 2022 by and between the City of Upland, a public agency organized and operating under the laws of the State of California with its principal place of business at 460 N. Euclid Avenue, Upland, CA 91786 (“City”), and _KOA Corporation, Inc. a California CORPORATION, with its principal place of business at 5095 Murphy Canyon Road, Suite 330 San Diego, 92123_ (hereinafter referred to as “Consultant”). City and Consultant are sometimes individually referred to as “Party” and collectively as “Parties” in this Agreement.
RECITALS
A. City is a public agency of the State of California and is in need of professional services for the following:
Local Road Safety Plan Services (hereinafter referred to as “the Project”).
B. Consultant is duly licensed and has the necessary qualifications to provide such services.
C. The Parties desire by this Agreement to establish the terms for City to retain Consultant to provide the services described herein.
AGREEMENT
NOW, THEREFORE, IT IS AGREED AS FOLLOWS:
1. Services.
Consultant shall provide the City with the services described in the Scope of Services attached hereto as Exhibit “A.”
2. Compensation.
a. Subject to paragraph 2(b) below, the City shall pay for such services in accordance with the Schedule of Charges set forth in Exhibit “B.” b. In no event shall the total amount paid for services rendered by Consultant under this Agreement exceed the sum of $65,000 in fiscal year 2021/22. This amount is to cover all printing and related costs, and the City will not pay any additional fees for printing expenses.
Periodic payments shall be made within 30 days of receipt of an invoice which includes a detailed description of the work performed. Payments to Consultant for work performed will be made on a monthly billing basis.
c. Consultant will submit invoices monthly for actual services performed.
Invoices shall be submitted between the first and fifteenth business day of each month, for services provided in the previous month. Payment shall be made within thirty (30) days of receipt of each invoice as to all non-disputed fees. If the City disputes any of consultant’s fees it shall give written notice to Consultant within 30 days of receipt of a notice of any disputed fees set forth on the invoice.
2 d. The City Manager may approve Additional W ork, as further defined in Section 3, up to ten percent (10%) of the amount of the Agreement or fifty thousand dollars ($50,000.00). In no event shall the total sum of the agreement (original compensation amount and Additional W ork) exceed one hundred thousand dollars ($100,000). Any additional work in excess of this amount shall be approved by the City Council.
3. Additional Work.
If changes in the work seem merited by Consultant or the City, and informal consultations with the other party indicate that a change is warranted, it shall be processed in the following manner: a letter outlining the changes shall be forwarded to the City by Consultant with a statement of estimated changes in fee or time schedule. An amendment to this Agreement shall be prepared by the City and executed by both Parties before performance of such services, or the City will not be required to pay for the changes in the scope of work. Such amendment shall not render ineffective or invalidate unaffected portions of this Agreement.
4. Maintenance of Records.
Books, documents, papers, accounting records, and other evidence pertaining to costs incurred shall be maintained by Consultant and made available at all reasonable times during the contract period and for four (4) years from the date of final payment under the contract for inspection by City.
5. Term.
The term of this Agreement shall be from the date the contract is executed by all parties to June 30, 2025, unless earlier terminated as provided herein. The Parties may, by mutual written consent, extend the term of this Agreement for up to two terms one year each. Consultant shall perform its services in a prompt and timely manner within the term of this Agreement and shall commence performance upon receipt of written notice from the City to proceed (“Notice to Proceed”).
6. Delays in Performance.
a. Neither City nor Consultant shall be considered in default of this Agreement for delays in performance caused by circumstances beyond the reasonable control of the non- performing party. For purposes of this Agreement, such circumstances include but are not limited to, abnormal weather conditions; floods; earthquakes; fire; epidemics; pandemics; war; riots and other civil disturbances; strikes, lockouts, work slowdowns, and other labor disturbances; sabotage or judicial restraint.
b. Should such circumstances occur, the non-performing party shall, within a reasonable time of being prevented from performing, give written notic e to the other party describing the circumstances preventing continued performance and the efforts being made to resume performance of this Agreement.
7. Compliance with Law.
a. Consultant shall comply with all applicable laws, ordinances, codes and regulations of the federal, state and local government, including Cal/OSHA requirements.
3 b. If required, Consultant shall assist the City, as requested, in obtaining and maintaining all permits required of Consultant by federal, state and local regulatory agencies. c. If applicable, Consultant is responsible for all costs of clean up and/ or removal of hazardous and toxic substances spilled as a result of his or her services or operations performed under this Agreement.
8. Standard of Care
Consultant’s services will be performed in accordance with generally accepted professional practices and principles and in a manner consistent with the level of care and skill ordinarily exercised by members of the profession currently practicing under similar conditions.
9. Assignment and Subconsultant
Consultant shall not assign, sublet, or transfer this Agreement or any rights under or interest in this Agreement without the written consent of the City, which may be withheld for any reason. Any attempt to so assign or so transfer without such consent shall be void and without legal effect and shall constitute grounds for termination. Subcontracts, if any, shall contain a provision making them subject to all provisions stipulated in this Agreement. Nothing contained herein shall prevent Consultant from employing independent associates, and subconsultants as Consultant may deem appropriate to assist in the performance of services hereunder.
10. Independent Contractor
Consultant is retained as an independent contractor and is not an employee of City. No employee or agent of Consultant shall become an employee of City. The work to be performed shall be in accordance with the work described in this Agreement, subject to such directions and amendments from City as herein provided.
a. PERS Eligibility Indemnification
In the event that Consultant or any employee, agent, or subcontractor of Consultant providing services under this Agreement claims or is determined by a court of competent jurisdiction or the California Public Employees Retirement System (“PERS”) to be eligible for enrollment in PERS as an employee of the City, Consultant shall indemnify, defend, and hold harmless City for the payment of any employee and/or employer contributions for PERS benefits on behalf of Consultant or its employees, agents, or subcontractors, as well as for the payment of any penalties and interest on such contributions, which would otherwise be the responsibility of City.
Notwithstanding any other agency, state or federal policy, rule, regulation, law or ordinance to the contrary, Consultant and any of its employees, agents, and subcontractors providing service under this Agreement shall not qualify for or become entitled to, and here by agree to waive any claims to, any compensation, benefit, or any incident of employment by City, including but not limited to eligibility to enroll in PERS as an employee of City and entitlement to any contribution to be paid by City for employer contribution and/or employee contributions for PERS benefits.
11. Insurance. Consultant shall not commence work for the City until it has provided evidence satisfactory to the City it has secured all insurance required under this section. In
4 addition, Consultant shall not allow any subcontractor to commence work on any subcontract until it has secured all insurance required under this section. a. Commercial General Liability
(i) The Consultant shall take out and maintain, during the performance of all work under this Agreement, in amounts not less than specified herein, Commercial General Liability Insurance, in a form and with insurance companies acceptable to the City. (ii) Coverage for Commercial General Liability insurance shall be at least as broad as the following:
(1) Insurance Services Office Commercial General Liability coverage (Occurrence Form CG 00 01) or exact equivalent. (iii) Commercial General Liability Insurance must include coverage for the following:
(1) Bodily Injury and Property Damage
(2) Personal Injury/Advertising Injury
(3) Premises/Operations Liability
(4) Products/Completed Operations Liability
(5) Aggregate Limits that Apply per Project
(6) Explosion, Collapse and Underground (UCX) exclusion deleted
(7) Contractual Liability with respect to this Agreement (8) Property Damage
(9) Independent Contractors Coverage
(iv) The policy shall contain no endorsements or provisions limiting coverage for (1) contractual liability; (2) cross liability exclusion for claims or suits by one insured against another; (3) products/completed operations liability; or (4) contain any other exclusion contrary to the Agreement.
(v) The policy shall give City, its officials, officers, employees, agents and City designated volunteers additional insured status using ISO endorsement forms CG 20 10 10 01 and 20 37 10 01, or endorsements providing the exact same coverage. (vi) The general liability program may utilize either deductibles or provide coverage excess of a self-insured retention, subject to written approval by the City, and provided that such deductibles shall not apply to the City as an additional insured. b. Automobile Liability
(i) At all times during the performance of the work under this Agreement, the Consultant shall maintain Automobile Liability Insurance for bodily injury and property damage including coverage for owned, non-owned and hired vehicles, in a form and with insurance companies acceptable to the City.
(ii) Coverage for automobile liability insurance shall be at least as broad as Insurance Services Office Form Number CA 00 01 covering automobile liability (Coverage Symbol 1, any auto).
5 (iii) The policy shall give City, its officials, officers, employees, agents and City designated volunteers additional insured status. (iv) Subject to written approval by the City, the automobile liability program may utilize deductibles, provided that such deductibles shall not apply to the City as an additional insured, but not a self-insured retention.
c. Workers’ Compensation/Employer’s Liability
(i) Consultant certifies that he/she is aware of the provisions of Section 3700 of the California Labor Code which requires every employer to be insured against liability for workers’ compensation or to undertake self-insurance in accordance with the provisions of that code, and he/she will comply with such provisions before commencing work under this Agreement.
(ii) To the extent Consultant has employees at any time during the term of this Agreement, at all times during the performance of the work under this Agreement, the Consultant shall maintain full compensation insurance for all persons employed directly by him/her to carry out the work contemplated under this Agreement, all in accordance with the “Workers’ Compensation and Insurance Act,” Division IV of the Labor Code of the State of California and any acts amendatory thereof, and Employer’s Liability Coverage in amounts indicated herein. Consultant shall require all subconsultants to obtain and maintain, for the period required by this Agreement, workers’ compensation coverage of the same type and limits as specified in this section.
d. Professional Liability (Errors and Omissions)
At all times during the performance of the work under this Agreement the Consultant shall maintain professional liability or Errors and Omissions insurance appropriate to its profession, in a form and with insurance companies acceptable to the City and in an amount indicated herein.
This insurance shall be endorsed to include contractual liability applicable to this Agreement and shall be written on a policy form specifically designed to protect against acts, errors or omissions of the Consultant. “Covered Professional Services” as designated in the policy must specifically include work performed under this Agreement. The policy must “pay on behalf of” the insured and must include a provision establishing the insurer's duty to defend. e. Minimum Policy Limits Required
(i) The following insurance limits are required for the Agreement:
Combined Single Limit
Commercial General Liability $1,000,000 per occurrence/ $2,000,000 aggregate for bodily injury, personal injury, and property
damage
Automobile Liability $1,000,000 combined single limit Employer’s Liability $1,000,000 per accident or disease Professional Liability $1,000,000 per claim and aggregate (errors and omissions)
6 (ii) Defense costs shall be payable in addition to the limits. (iii) Requirements of specific coverage or limits contained in this section are not intended as a limitation on coverage, limits, or other requirement, or a waiver of any coverage normally provided by any insurance. Any available coverage shall be provided to the parties required to be named as Additional Insured pursuant to this Agreement. f. Evidence Required
Prior to execution of the Agreement, the Consultant shall file with the City evidence of insurance from an insurer or insurers certifying to the coverage of all insurance required herein. Such evidence shall include original copies of the ISO CG 00 01 (or insurer’s equivalent) signed by the insurer’s representative and Certificate of Insurance (Acord Form 25-S or equivalent), together with required endorsements. All evidence of insurance shall be signed by a properly authorized officer, agent, or qualified representative of the insurer and shall certify the names of the insured, any additional insureds, where appropriate, the type and amount of the insurance, the location and operations to which the insurance applies, and the expiration date of such insurance.
g. Policy Provisions Required
(i) Consultant shall provide the City at least thirty (30) days prior written notice of cancellation of any policy required by this Agreement, except that the Consultant shall provide at least ten (10) days prior written notice of cancellation of any such policy due to non-payment of premium. If any of the required coverage is cancelled or expires during the term of this Agreement, the Consultant shall deliver renewal certificate(s) including the G eneral Liability Additional Insured Endorsement to the City at least ten (10) days prior to the effective date of cancellation or expiration.
(ii) The Commercial General Liability Policy and Automobile Policy shall each contain a provision stating that Consultant’s policy is primary insurance and that any insurance, self-insurance or other coverage maintained by the City or any named insureds shall not be called upon to contribute to any loss.
(iii) The retroactive date (if any) of each policy is to be no later than the effective date of this Agreement. Consultant shall maintain such coverage continuously for a period of at least three years after the completion of the work under this Agreement. Consultant shall purchase a one (1) year extended reporting period A) if the retroactive date is advanced past the effective date of this Agreement; B) if the policy is cancelled or not renewed; or C) if the policy is replaced by another claims-made policy with a retroactive date subsequent to the effective date of this Agreement.
(iv) All required insurance coverages, except for the professional liability coverage, shall contain or be endorsed to provide a waiver of subrogation in favor of the City, its officials, officers, employees, agents, and volunteers or shall specifically allow Consultant or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Consultant hereby waives its own right of recovery against City and shall require similar written express waivers and insurance clauses from each of its subconsultants.
7 (v) The limits set forth herein shall apply separately to each insured against whom claims are made or suits are brought, except with respect to the limits of liability.
Further the limits set forth herein shall not be construed to relieve the Consultant from liability in excess of such coverage, nor shall it limit the Consultant’s indemnification obligations to the City and shall not preclude the City from taking such other actions available to the City under other provisions of the Agreement or law.
h. Qualifying Insurers
(i) All policies required shall be issued by acceptable insurance companies, as determined by the City, which satisfy the following minimum requirements:
(1) Each such policy shall be from a company or companies with a current A.M. Best's rating of no less than A: VII and admitted to transact in the business of insurance in the State of California, or otherwise allowed to place insura nce through surplus line brokers under applicable provisions of the California Insurance Code or any federal law.
i. Additional Insurance Provisions
(i) The foregoing requirements as to the types and limits of insurance coverage to be maintained by Consultant, and any approval of said insurance by the City, is not intended to and shall not in any manner limit or qualify the liabilities and obligations otherwise assumed by the Consultant pursuant to this Agreement, including but not limited to, the provisions concerning indemnification.
(ii) If at any time during the life of the Agreement, any policy of insurance required under this Agreement does not comply with these specifications or is canceled and not replaced, City has the right but not the duty to obtain the insurance it deems necessary and any premium paid by City will be promptly reimbursed by Consultant or City will withhold amounts sufficient to pay premium from Consultant payments. In the alternative, City may cancel this Agreement.
(iii) The City may require the Consultant to provide complete copies of all insurance policies in effect for the duration of the Project. (iv) Neither the City nor any of its officials, officers, employees, agents, or volunteers shall be personally responsible for any liability arising under or by virtue of this Agreement.
j. Subconsultant Insurance Requirements. Consultant shall not allow any subcontractors or subconsultants to commence work on any subcontract until they have provided evidence satisfactory to the City that they have secured all insurance required under this section.
Policies of commercial general liability insurance provided by such subcontractors or subconsultants shall be endorsed to name the City as an additional insured using ISO form CG 20 38 04 13 or an endorsement providing the exact same coverage. If requested by Consultant, City may approve different scopes or minimum limits of insurance for subcontractors or subconsultants.
12. Indemnification.
8 a. To the fullest extent permitted by law, Consultant shall defend (with counsel of City’s choosing), indemnify and hold the City, its officials, officers, employees, volunteers, and agents free and harmless from any and all claims, demands, causes of action, costs, expenses, liability, loss, damage or injury of any kind, in law or equity, to property or persons, including wrongful death, in any manner arising out of, pertaining to, or incident to any acts, errors or omissions, or willful misconduct of Consultant, its officials, officers, employees, subcontractors, consultants or agents in connection with the performance of the Consultant’s services, the Project or this Agreement, including without limitation the payment of all damages, expert witness fees and attorney’s fees and other related costs and expenses. Consultant's obligation to indemnify shall not be restricted to insurance proceeds, if any, received by Consultant, the City, its officials, officers, employees, agents, or volunteers.
b. If Consultant’s obligation to defend, indemnify, and/or hold harmless arises out of Consultant’s performance of “design professional” services (as that term is defined under Civil Code section 2782.8), then, and only to the extent required by Civil Code section 2782.8, which is fully incorporated herein, Consultant’s indemnification obligation shall be limited to claims that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Consultant, and, upon Consultant obtaining a final adjudication by a court of competent jurisdiction, Consultant’s liability for such claim, including the cost to defend, shall not exceed the Consultant’s proportionate percentage of fault.
13. California Labor Code Requirements.
a. Consultant is aware of the requirements of California Labor Code Sections 1720 et seq. and 1770 et seq., which require the payment of prevailing wage rates and the performance of other requirements on certain “public works” and “maintenance” projects (“Prevailing Wage Laws”). If the services are being performed as part of an applicable “public works” or “maintenance” project, as defined by the Prevailing Wage Laws, and if the total compensation is $1,000 or more, Consultant agrees to fully comply with such Prevailing Wage Laws. Consultant shall defend, indemnify, and hold the City, its officials, officers, employees and agents free and harmless from any claims, liabilities, costs, penalties or interest arising out of any failure or alleged failure to comply with the Prevailing Wage Laws. It shall be mandatory upon the Consultant and all subconsultants to comply with all California Labor Code provisions, which include but are not limited to prevailing wages (Labor Code Sections 1771, 1774 and 1775), employment of apprentices (Labor Code Section 1777.5), certified payroll records (Labor Code Sections 1771.4 and 1776), hours of labor (Labor Code Sections 1813 and 1815) and debarment of contractors and subcontractors (Labor Code Section 1777.1). The requirement to submit certified payroll records directly to the Labor Commissioner under Labor Code section 1771.4 shall not apply to work performed on a public works project that is exempt pursuant to the small project exemption specified in Labor Code Section 1771.4. b. If the services are being performed as part of an applicable “public works” or “maintenance” project, then pursuant to Labor Code Sections 1725.5 and 1771.1, the Consultant and all subconsultants performing such services must be registered with the Department of Industrial Relations. Consultant shall maintain registration for the duration of the Project and require the same of any subconsultants, as applicable. Notwithstanding the foregoing, the contractor registration requirements mandated by Labor Code Sections 1725.5 and 1771.1 shall not apply to work performed on a public works project that is exempt pursuant to the small project exemption specified in Labor Code Sections 1725.5 and 1771.1. c. This Agreement may also be subject to compliance monitoring and enforcement by the Department of Industrial Relations. It shall be Consultant’s sole responsibility
9 to comply with all applicable registration and labor compliance requirements. Any stop orders issued by the Department of Industrial Relations against Consultant or any subcontractor that affect Consultant’s performance of services, including any delay, shall be Consultant’s sole responsibility. Any delay arising out of or resulting from such stop orders shall be considered Consultant caused delay and shall not be compensable by the City. Consultant shall defend, indemnify, and hold the City, its officials, officers, employees and agents free and harmless from any claim or liability arising out of stop orders issued by the Department of Industrial Relations against Consultant or any subcontractor.
14. Verification of Employment Eligibility.
By executing this Agreement, Consultant verifies that it fully complies with all requirements and restrictions of state and federal law respecting the employment of undocumented aliens, including, but not limited to, the Immigration Reform and Control Act of 1986, as may be amended from time to time, and shall require all subconsultants and sub-subconsultants to comply with the same.
15. Reserved
16. Laws and Venue.
This Agreement shall be interpreted in accordance with the laws of the State of California.
If any action is brought to interpret or enforce any term of this Agreement, the action shall be brought in a state or federal court situated in the County of San Bernardino, State of California. 17 Termination or Abandonment
a. City has the right to terminate or abandon any portion or all of the work under this Agreement by giving ten (10) calendar days written notice to Consultant. In such event, City shall be immediately given title and possession to all original field notes, drawings and specifications, written reports and other documents produced or developed for that portion of the work completed and/or being abandoned. City shall pay Consultant the reasonable value of services rendered for any portion of the work completed prior to termination. If said termination occurs prior to completion of any task for the Project for which a payment request has not been received, the charge for services performed during such task shall be the reasonable value of such services, based on an amount mutually agreed to by City and Consultant of the portion of such task completed but not paid prior to said termination. City shall not be liable for any costs other than the charges or portions thereof which are specified herein. Consultant shall not be entitled to payment for unperformed services and shall not be entitled to damages or compensation for termination of work.
b. Consultant may terminate its obligation to provide further services under this Agreement upon thirty (30) calendar days’ written notice to City only in the event of substantial failure by City to perform in accordance with the terms of this Agreement through no fault of Consultant.
18 Documents. Except as otherwise provided in “Termination or Abandonment,” above, all original field notes, written reports, Drawings and Specifications and other documents, produced or developed for the Project shall, upon payment in full for the services described in this Agreement, be furnished to, and become the property of the City.
19. Organization
10 Consultant shall assign Lawrence Tai, TE to serve as Traffic Engineer while, John Kerenyi, TE, PTOE will serve as Project Manager and backup Traffic Engineer. The Traffic Engineer or the Project Manager shall not be removed from the Project or reassigned without the prior written consent of the City.
20. Limitation of Agreement.
This Agreement is limited to and includes only the work included in the Project described above.
21. Notice
Any notice or instrument required to be given or delivered by this Agreement may be given or delivered by depositing the same in any United States Post Office, certified mail, return receipt requested, postage prepaid, addressed to:
DISTRICT:
City of Upland
460 N. Euclid Avenue
Upland, CA 91786
Attn: City Manager
CONSULTANT:
KOA, Inc.
5095 Murphy Canyon Road, Suite 330
San Diego, CA 92123
ATTN: Min Zhou, PE, CEO
and shall be effective upon receipt thereof.
22. Third Party Rights
Nothing in this Agreement shall be construed to give any rights or benefits to anyone other than the City and the Consultant.
23. Equal Opportunity Employment.
Consultant represents that it is an equal opportunity employer and that it shall not discriminate against any employee or applicant for employment because of race, religion, color, national origin, ancestry, sex, age, or other interests protected by the State or Federal Constitutions. Such non-discrimination shall include, but not be limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff, or termination.
24. Entire Agreement
This Agreement, with its exhibits, represents the entire understanding of City and Consultant as to those matters contained herein, and supersedes and cancels any prior or contemporaneous oral or written understanding, promises or representations with respect to those matters covered hereunder. Each Party acknowledges that no representations, inducements, promises or agreements have been made by any person which are not incorporated herein, and that any other agreements shall be void. This Agreement may not be modified or altered except in writing signed by both Parties hereto. This is an integrated Agreement.
25. Severability
11 The unenforceability, invalidity, or illegality of any provision(s) of this Agreement shall not render the remaining provisions unenforceable, invalid or illegal.
26. Successors and Assigns
This Agreement shall be binding upon and shall inure to the benefit of the successors in interest, executors, administrators and assigns of each Party to this Agreement. However, Consultant shall not assign or transfer by operation of law or otherwise any or all of its rights, burdens, duties, or obligations without the prior written consent of City. Any attempted assignment without such consent shall be invalid and void.
27. Non-Waiver
None of the provisions of this Agreement shall be considered waived by either Party, unless such waiver is specifically specified in writing.
28. Time of Essence
Time is of the essence for each and every provision of this Agreement.
29. City’s Right to Employ Other Consultants
City reserves its right to employ other consultants, including engineers, in connection with this Project or other projects.
30. Prohibited Interests
Consultant maintains and warrants that it has not employed nor retained any company or person, other than a bona fide employee working solely for Consultant, to solicit or secure this Agreement. Further, Consultant warrants that it has not paid nor has it agreed to pay any company or person, other than a bona fide employee working solely for Consultant, any fee, commission, percentage, brokerage fee, gift, or other consideration contingent upon or resulting from the award or making of this Agreement. For breach or violation of this warranty, City shall have the right to rescind this Agreement without liability. For the term of this Agreement, no director, official, officer or employee of City, during the term of his or her service with City, shall have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom.
[SIGNATURES ON FOLLOWING PAGE]
12 SIGNATURE PAGE FOR PROFESSIONAL SERVICES AGREEMENT
BETWEEN CITY OF UPLAND
AND CONSULTANT
IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first written above.
CITY OF UPLAND CONSULTANT, INC.
By: By:
Michael Blay
City Manager Its:
Printed Name:
ATTEST: And By:
By: Its:
Keri Johnson
City Clerk
Printed Name:
APPROVED AS TO FORM:
By:
Stephen Deitsch
City Attorney
13 EXHIBIT A
Scope of Services
An outline for the project including tasks to perform and services to provide included, but is not limited to:
Task 1: Identify and Engage Stakeholders
The proposed LRSP will be developed in collaboration with key stakeholders that include the local community, businesses, and local transportation providers (Omnitrans), San Bernardino County Fire Department, City of Upland Police Department, Upland Unified School District, as well as advocacy groups promoting public health and safety. At least, three public community/stakeholder meetings will be held in development of the plan for the following activities:
1) Identify high need areas and stakeholder priorities to establish LRSP goals and objectives.
2) Review potential solutions and countermeasures and draft the LRSP. 3) Prioritize implementation of projects.
4) Review and comment on final draft of the LRSP, and
5) Final approval and adoption of the LRSP by the City Council.
Task 2: Roadway Data Review
The consultant will review existing policies and practices to summarize current City efforts in addressing transportation safety. Programs that have evidence of measurable success will be identified. The consultant will also review data from the Traffic Information Management System (TIMS), as well as data from the City of Upland Police Department, for roadway collisions (vehicular and pedestrian) and severity of injuries. The analysis will document traffic patterns, roadway features, traffic volumes, crash type, driver factors, and environmental conditions with special attention directed to mid -block crosswalks.
Task 3: Identify Priority Projects and Countermeasures
The consultant will collaborate with the City and stakeholders to identify priority areas to establish goals and strategies (including specific countermeasures) to improve traffic safety and mitigate number of collisions the City incurs. Proposed countermeasures will include the 4 Es of highway safety – engineering, enforcement, education, and emergency response.
Countermeasures will specifically be targeted to address priority areas, and may include installation of pedestrian amenities, pedestrian safety education, and increased data collection and analysis. The consultant will identify a lead agency for each countermeasure and establish measurable objectives and goals in the draft LRSP for City review.
Task 4: Development of Final LRSP
Using information gathered in Task 1 thru 3, the consultant will develop a Final Local Roadway Safety Plan that aligns with the State and Federal Highway Safety Plan. The proposed plan will include strategies for implementation, as well as a met hodology to regularly review and update the LRSP plan once it has been approved and adopted by Upland City Council.
Task 5: Development of a procedure to modify the Final LRSP
14 With the knowledge of preparing the LRSP, develop a standard procedure to fol low for modifications to the plan in the future.
DELIVERABLES
The successful consultant shall:
1. Convene at a minimum three (3) public community/stakeholder meetings – including preparation of agenda and meeting minutes, and
2. Prepare LRSP:
a. Preliminary LRSP (65% Complete).
b. Draft LRSP (90% Complete), and
c. Final LRSP (signed and stamped)
The Final LRSP shall be signed and stamped by a registered Civil and/or Traffic Engineer in the State of California and include supporting documentation.
Electronic copies of the Final LRSP and supporting documentation shall also be provided.
15 EXHIBIT B
Schedule of Charges/Payments
Consultant will invoice City on a monthly cycle. Consultant will include with each invoice a detailed progress report that indicates the amount of budget spent on each task. Consultant will inform City regarding any out-of-scope work being performed by Consultant. This is a time-and-materials contract based on the rate schedule below.
PROFESSIONAL ENGINEERING FOR LOCAL ROAD SAFETY PLAN SERVICES
CONSULTANT CRITERIA RATING FORM
FIRMS
AVERAGE
RANK FINAL RANK
MINAGAR & ASSOCIATES 2.00 2.00
KOA 1.00 1.00
GTS 3.00 3.00
EVALUATION CRITERIA
QUALIFICATIONS
TECHNICAL EXPERIENCE
REFERENCES
METHODOLOGY
COSTS
SUPPORTING STAFF
FIRM QUALIFICATIONS
UNDERSTANDING
PSA EXCEPTIONS
REVIEWED BY: Criteria Rating Page 1 of 1 1/19/2022Page 20 of 20
S T A F F R E P O R T
I T E M N O . 10.H .
D A T E :Feb ruary 14 , 20 22
T O :M A YO R A N D C I T Y C O U N C I L
F R O M : M I C H A E L B L A Y , C I T Y M A N A G E R P R E P A R E D B Y : B R A D E N Y U, P U B L I C W O R K S D I R E C TO R
A L A N F R E N C H , P R I N C I PA L E N G I N E E R S U B J E C T :A P P R O V A L O F PA R C E L M A P 19 43 5 (LO C A T E D O N T H E S O U T H
S I D E O F M E S A C O U RT E A S T O F C A M P U S A V E N U E )
R E C O M M E N D E D A C T I O N
I t is recom m en d ed t h at t he C ity C ou ncil ap p rove th e s u b d i vis ion ag reem ent an d authorize the C ity M anag er to exec u t e t he ag reem en t ; accep t t h e ass oci ated b ond s an d ap p rove Parcel M ap 19 43 5 for record ation.
G O A L S T A T E M E N T
Th e p rop os ed act ion sup p orts th e C it y's g oal t o ad here to a review sched ule for th e p rocessin g of d evelop m ent m atters in an efficien t, p rofessionally resp onsive an d courteou s m ann er.
B A C K G R O U N D
Th e existing p rop erty i s located sou th of M es a C ourt ju st east of C am p us Avenu e. Th e own er p u rchased the p rop erty w ith an existing reh ab ilitation facility an d a vacant lot at the m id -b lock of M esa C ou rt. Th e p rop erty is accessed b y three p u b lic alleys. T he own er h as sub m itted a ten tative p arcel m ap w h i ch con si st ed of com b in in g t he m ultip le l ots an d creati ng two n ew lots on wh ich resi d en ti al ap art m en t b u i ld in g s could b e con st ru ct ed . S ub seq uen tl y, th e ow n er h as actively p u rsued record ation of the m ap .
O n J an uary 2 2, 20 20 , t h e P lan ning C om m ission ap p roved Tent ati ve Parcel M ap 19 43 5 throug h Resolution N o. 49 10 wh ic h p rop os es to sub d ivid e t he su b jec t p rop erty into t w o p arc els . A ny utility easem ents or encum b rances are sh ow n on th e m ap .
I S S U E S /A N A L Y S I S
Th e fin al m ap ap p roval an d record ati on w ill al low for b u ild ing of ap art m en ts on on e of the newly created lot s. Th e p arcel m ap i s i n con form ance w it h t h e con d itions of ap p roval . S in ce th is is in an existin g d evelop ed area, there were on ly alley im p rovem ents req uired as a con d ition of Tentative Parcel M ap 19 43 5, th erefore the S u b d ivision A g reem ent an d I m p rovem en t B on d s are n ecessary. A cas h m onu m en tat ion d ep osit h as b een rec eived b y the C ity.
F I S C A L I M P A C T S
Th ere is n o fiscal im p act b y th is p rop osed action.
A L T E R N A T I V E S
P rovid e altern ative d irection to staff.
AT TAC HM E NT S :
Description
Subdivision agreement
Parcel M ap
L ocation M ap
Public Bond Estimate
Performance Bond
L abor and M aterials Bond
MESA COURT
ELEVENTH STREET
CL
CL
CA
M
P
U
S
AV
E
CL
AL
L
E
Y
AL
L
E
Y
ALLEY
NOT A PART
66'
33'
33 '
33 '
66 '
20'
1010
20 '
10 10
10 PARCEL 1
PARCEL 2
1.462 AC
2.490 AC
33 '
66 '
FOOTHILL BOULEVARD
Δ
11 t
h
A
V
E
H
O
S
P
I
T
A
L
P
A
R
K
W
A
Y
MESA COURT
ELEVENTH STREET
CL
CL
CA
M
P
U
S
AV
E
CL
AL
L
E
Y
AL
L
E
Y
ALLEY
NOT A PART
66'
33'
33 '
33 '
66 '
20'
1010
20 '
10 10
10 PARCEL 1
PARCEL 2
1.462 AC
2.490 AC
33 '
66 '
FOOTHILL BOULEVARD
Δ
Site Map Mesa Court Apartments
S T A F F R E P O R T
I T E M N O . 11.A .
D A T E :Feb ruary 14 , 20 22
T O :M A YO R A N D C I T Y C O U N C I L
F R O M : M I C H A E L B L A Y, C I T Y M A N A G E R P R E P A R E D B Y : S T E P H E N PA R K E R , A S S I S TA N T C I T Y M A N A G E R
K E R I J O H N S O N , C I T Y C L E R K
S U B J E C T :P U B L I C H E A R I N G TO C O N S I D E R A N D TA K E A C T I O N O N D R A F T
M A P S A N D T H E R E D R A W I N G O F U P L A N D C I T Y C O U N C I L
E L E C T I O N D I S T R I C T B O U N D A R I E S
R E C O M M E N D E D A C T I O N
I t is recom m end ed that th e C ity C oun cil:
1. C on d u ct th e fourth p u b l ic h earin g , recei ve inp ut from th e com m u ni ty on d raft m ap s an d th e red rawing of election d istrict b oun d aries; and
2. P rovid e d irection t o staff reg ard in g w h i ch m ap sh ou l d b e con si d ered for in cl u s ion i n the O rd in ance to ad op t new d istrict b oun d aries for the U p land C ity C oun cil.
3. H old fi rs t read i ng b y ti tl e onl y, w aive fu rth er read i ng , and i n t rod u c e an O rd inan ce am en d ing S ec ti on 2.0 2.1 00 B y-D istrict E lections, Red rawing C ou n c il D i st ri ct M ap s, an d C on firm ing su ch revised C ou ncil D istrict B oun d aries.
G O A L S T A T E M E N T
Th e p rop osed action sup p orts th e C ity's g oal to com p ly w ith all state reg ulations.
B A C K G R O U N D
Th e C ity C oun cil m ust cond uct at least fou r p ub lic h earing s (tw o hearin g s b efore any m ap s are d raw n, an d at least t w o h eari ng s after m ap s are d raw n) t o t ake p ub lic i n p u t on red istrictin g and th e d rawing of final d i st ri ct s m ap s, i nc lu d i ng wh ich d is tric t m ap sh oul d b e s elec ted . T he first th ree p u b lic h earing s were h eld on S ep tem b er 1 3, 2 0 2 1 , O ct ob er 2 5, 2 02 1, and J anu ary 10 , 20 22 .
Th e C ity al so h eld a virt ual p u b l ic w orks h op on D ecem b er 7, 2 02 1 to d em on st rat e how t o u se th e d ig ital m ap p ing t ool to d raw a d raft m ap . Th e m ap p in g tool w as m ad e avai lab le to the p u b lic on th e C i ty's w eb site at w w w.u p land ca.g ov/red istricting -20 20 . A d ead line t o sub m it
d raft m ap s t o b e con si d ered at th e J an u ary 1 0, 20 22 , p u b l ic h eari ng was set for T hu rsd ay, D ecem b er 3 0, 20 21 and t he fin al sub m ission d ead l in e for C ou nc il c on s id erat ion of d raft m ap s w as set for Th ursd ay, J an uary 27 , 20 22 at 6 p .m .
D urin g th e J an u ary 1 0, 20 22 P u b lic H earin g th e C ity's con su lt ant , N at ion al D em og rap h ics C orp oration ("N D C ") p resen ted d raft m ap s th at were su b m itted b y the p ub lic an d also in form ed the C it y C ou ncil th at t h ey h ad p roc ess ed t h e 2 02 0 C en s u s n u m b ers an d an alyzed th em with res p ec t to t he c u rren t d ist rict s u sed in t he C it y of U p l and . N D C foun d t h at the city's cu rren t p op u l ati on d eviat ion - th e d ifferen ce b etween t h e m ost p op ul ous and least p op ulous d i st ri ct s - i s 7.1 4%. Th is val ue is with in the 1 0 % th res h ol d for a m ap to m eet the eq u al p op u lation req uirem ent (H arris v A rizona I nd ep en d en t Red istricting C om m ission ). At th e con cl u s ion of th e h earing th e C ou n ci l g ave d irection to N D C t o p rep are ad d it ion al d raft m ap s b as ed on th e cu rrent C ou ncil E lection D istricts, w it h t h e p urp ose of red ucin g th e p op ulation d eviation .
O n J anu ary 2 4, 2 02 2 the C ity C ou ncil held a S p ecial Worksh op to review all su b m itted d raft m ap s, i n c lu d i n g t w o m ap s p rep ared b y N D C b ased on the d irect ion p rovid ed b y C ou n c il at the J an uary 1 0, 2 02 2 P ub lic H eari n g . D urin g th e w orks h op th e C it y C ou nc il con sid ered a tot al of twelve d raft m ap s and g ave d irection to staff that th e cu rrent p referred d raft m ap is P lan 1 11 .
I S S U E S /A N A L Y S I S
Th e C al iforn i a E l ect ion s C od e req u ires t h at every t en years ci ti es w it h b y-d istrict election system s use n ew cen su s d at a t o review an d , if n eed ed , red raw d is tric t lin es to refl ect how local p op u lat ion s have c h an g ed . T his p roc ess , called red i st ri ct in g , ensures al l d i st ri ct s have nearly eq u al p op ul ati on. T h e red istricting p rocess for th e C it y of U p lan d m ust b e com p l eted b y A p ril 1 7, 20 22 . T h i s is t he fourth , an d fin al, of th e req u ired p u b l ic h earing s for th e curren t p rocess.
Th e p u b lic w as invited to s u b m i t i n p u t reg ard in g d is tric t b ou n d aries , in cl u d in g d raft m ap s, via an onlin e red i st ri ct in g tool availab le at www.up lan d c a.g ov/red i st ri ct in g -2 02 0, w it h a su b m ission d ead lin e of Th ursd ay, J an uary 27 , 20 22 at 6 p .m . I t sh ould b e noted that d raft m ap s m u st b e p u b l ic ly availab le an d p osted on th e C it y’s web site, w w w.u p land ca.g ov/red istricting -20 20 for at leas t seven d ays b efore it c an b e con sid ered b y th e C i ty C ou ncil at a p ub li c hearin g . A ll d raft m ap s att ach ed to th e st aff rep ort for con sid eration b y th e C oun cil were p os ted b efore t he d ead l in e of Feb ru ary 7 , 2 02 2. I f a chan g e is m ad e to a m ap at t he p ub li c h eari ng , th e revi sed m ap m ust b e p osted at l east seven d ays b efore it is con sid ered b y th e C ou ncil for ad op tion b y ord inan ce.
Th e p u rp ose of tonig h t’s p u b lic hearin g is to receive p ub lic inp ut on the d raft m ap s, an d d iscuss an d p rovid e an y c om m en t s to st aff reg ard i n g wh ic h fin al m ap p rod uct th e C ity C oun cil w ould like to con sid er. S u b seq u ent to the worksh op h eld on J anu ary 2 4, 2 02 2 the C ity d id n ot receive an y ad d i ti on al d raft m ap sub m ission s. T herefore, the d rafts m ap s at tached for you r con sid eration are th e sam e m ap s reviewed at the S p ecial Worksh op .
I t is recom m end ed t hat th e C i ty C oun ci l g ive d irect ion reg ard in g w h ic h fi n al m ap p rod u ct the C ity C ou n c il w ou l d l ike t o con sid er. I f a fin al d raft m ap can b e sel ect ed t hat d oes not req uire m od ification , i n t rod u c ti on an d fi rs t read i n g of th e p rop os ed ord i nan ce can t ake p lace this evening . I f t h e d raft m ap or m ap s that th e C i ty C ou ncil w ou l d like to con sid er for ad op tion need m od ification, th en th e C ity will h old a fifth p u b lic h earing on Feb ru ary 28 , 2 02 2, to in trod u ce the first read ing of th e ord in ance.
M ap s for C ity C oun cil C onsid eration
D raft m ap s were req uired to b e su b m itted b y the J anu ary 2 7, 2 02 2 6 p .m . d ead line. E ach m ap w ill b e evaluated b y N D C to d eterm i n e w hich m ap s m eet th e st and ard s es tab li sh ed b y th e rel evan t l eg al au th ori ty (eq u al p op u l ati on in t he d i st ri ct s, Fed eral Voting R ig hts A ct com p lian ce, n o racial g errym an d erin g , ad d ress c om m un it ies of i nt eres t, com p actn ess of the
d istricts, c on t ig u ou s d i st ri ct s, resp ect for vot ers ’ w ishes an d cont in ui ty in offic e, an d visib le (natural an d m an -m ad e) b oun d aries ) an d can b e consid ered b y th e C it y C oun cil. M ap s tog eth er with its d em og rap hic an alysis, w ere p ub licly p osted on the C ity's w eb site on Feb ru ary 1, 2 02 2 at w w w.u p land ca.g ov/red istricting -20 20 .
P u b lication an d N oticin g R eq u irem en ts for R ed istrictin g Per E l ect ion s C od e §§ 2 1 6 0 8 (c ) an d 21 60 8(g )(3), th e C it y i s req uired t o “p ub lish ” the hearin g d ate, tim e, an d l ocat ion 5 d ays in ad van ce of th e P u b l ic H eari n g on th e in ternet and a web site calend ar satisfies t he p u b li sh in g req u irem en t. O n J anu ary 2 7, 2 02 2, t h e p u b li c hearin g in form ation w as p u b li sh ed on th e C i ty’s w eb s it e. A d d i ti onal ly, t o in crease p ub lic p articip ation, th e C ity ad vertised this inform ation th rou g h its variou s social m ed ia p latform s.
L ang uag e R eq uirem ents for R ed istricting
Per E l ect ion s C od e § 2 16 08 , t h e C i ty m u st p rovi d e lan g u ag e services in ap p licab le lang uag es, as p rovid ed b y the S ecretary of S tate. O n J u ne 1 1, 2 02 1, the S ecretary of S tate released g u id ance for c it ies reg ard in g th ese lang uag e req ui rem ent s. I n ad d i ti on to E n g lish, t he C it y is req uired to p rovid e q ualifying m aterials and “live translation ” (in terp retation ) services in S p anish up on a req u est m ad e at least 72 hou rs in ad van ce of a h earing or worksh op .
C om m u nity O u treach
Th e C i ty h as used a variety of outreach efforts to req uest t h at t he p u b li c p articip ate in this p rocess and p rovid e in p u t reg ard in g com m u nities of interest and other local factors th at sh ould b e consid ered w hile d rafti n g d i st ri ct m ap s. Th ese efforts i n c lu d e, b ut are n ot lim ited to, p u b lic h eari n g not ices, social m ed ia p ost in g s , ann oun cem ent s, flyers, an d u p d ates d u ring C ity C ou ncil M eeti ng s an d oth er C i ty even ts, a Red istricting relat ed survey, an d inform ation al m aterials in th e C ity's D ep artm en t N ews and Up lan d Tod ay.
M ap p ing Tools an d P ub lic P articip ation K its
C alifornia's new "Fair M ap s A ct" h as s ig n i fic an t ly c h an g ed th e crit eri a for m ap p in g com p ared to t h e ru les wh en U p lan d first wen t th rou g h th e d is tric ti n g p roc ess . T he C ity’s d em og rap hic con su ltant, N D C , p rovid ed an on li n e m ap p in g tool to em p ower res id ent s t o revi ew d raft m ap s and to d evel op and su b m it t hei r ow n m ap p rop os als . U p land m ad e t he tool avail ab l e on line at th e p rojec t’s w eb site w w w.u p land ca.g ov/red istricting -20 20 from D ecem b er 7, 2 02 1 throug h J an uary 27 , 2 02 2. T he onlin e m ap p i ng tool al lowed an in terest ed p arty t o d raw, su b m it , an d p u b lish an onl in e m ap for consid eration b y t he C i ty C ou n c il . Th e m ap p in g tool p rovi d ed b oth th e p op u lat ion c oun ts an d d em og rap h ic d ata for eac h cen su s b l ock that t he us ers c an review as they consid er their d raft m ap s.
C en su s D ata and A n alysis
O n S ep t em b er 2 7, 2 02 1, th e S t ate of C ali forn ia p osted th e p ris oner-ad ju st ed 2 02 0 C en su s d ata p er E lections C od e 21 00 3. For all cit ies, t hese fig u res are d eem ed to b e the fin al nu m b ers to b alan ce in the red istricting p rocess (E lection s C od e 2 16 03 (a)). N D C p rocessed th ese nu m b ers an d analyzed them with resp ect to the cu rrent d istricts u sed in th e C ity of Up lan d . N D C fin d s th at th e c it y's cu rrent p op u lat ion d eviat ion - t he d i fferen ce b et w een the m ost p op ulous an d least p op ulous d istricts - is 7 .14 %. T his valu e is w ithin th e 1 0% th reshold for a m ap to m eet t h e eq u al p op u lat ion req u i rem en t (H arris v A ri zon a I nd ep en d en t Red istrictin g C om m ission).
F I S C A L I M P A C T S
Th e cos ts associat ed w i th t he red istricting p roces s have b een b u d g eted in t h e F Y 2 02 1-2 2 B u d g et. N o ad d itional ap p rop riation is n ecessary.
A L T E R N A T I V E S
O p tion 2: (I f m ap m od ification s are req uired )
1. P rovid e d irection t o staff reg ard in g w h i ch m ap sh ou l d b e con si d ered for in cl u s ion i n the
O rd i n an c e for ad op t in g n ew d i st ri ct b ou n d ari es for t he U p l and C i ty C ou n ci l an d any m od ification s.
2. H old a fi fth P u b li c H eari ng at t he next reg u l arl y s ch ed u led C it y C oun cil m eetin g on Feb ruary 28 , 20 22 to cond uct the 1 st read in g an d introd uction of the O rd inan ce ad op tin g fin al m ap .
AT TAC HM E NT S :
Description
Ordinance Amending Section 2.02.100 By-District E lections Existing E lection Districts
Plan 101
Plan 102
Plan 103
Plan 104 (5 Districts)
Plan 104 (7 Districts)
Plan 105
Plan 106
Plan 107
Plan 108
Plan 109
Plan 110
Plan 111
Plan 112
ORDINANCE NO.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
UPLAND AMENDING UPLAND MUNICIPAL CODE SECTION
2.02.100(D) REGARDING BY-DISTRICT ELECTIONS,
ADJUSTING THE BOUNDARIES OF CITY COUNCIL
ELECTION DISTRICTS AND CONFIRMING SUCH REVISED
COUNCIL DISTRICT BOUNDARIES, AS REFLECTED IN THE
ATTACHED MAP
WHEREAS, on July 25, 2016 the City Council of the City of Upland ("City Council") held a final public hearing on establishing Council election district boundaries, received additional public input, and formally selected the voting district map, set forth in Ordinance No. 1909 which established the current Upland City Council election districts codified at Upland Municipal Code section 2.02.100(D), which have been utilized to date in City Council elections; and
WHEREAS, the United States Census Bureau is required by Article I, Section 2, of the United States Constitution to conduct an accurate count of the population every ten years; and
WHEREAS, California Elections Code § 21601 requires that following each decennial federal census, and using that census as a basis, the Council shall, by ordinance or resolution, adjust the boundaries of any or all of the Council election districts of the City so that the districts shall be substantially equal in population as required by the United States Constitution, California Constitution, and the Federal Voting Rights Act. In establishing the boundaries of the districts the Council must give consideration to the following factors in the following priority: (a) contiguity of districts, (b) respecting communities of interest, (c) drawing easily identifiable districts through use of natural or artificial boundaries and (d) compactness of territory in districts; and
WHEREAS, California Elections Code § 21602 requires that the Council adopt an ordinance or pass a resolution amending Council districts no later than April 17, 2022; and
WHEREAS, on September 27, 2021 the Census Bureau sent 2020 Census data to the State of California with an official population estimate of 79,040 residents for the City of Upland; and
WHEREAS, the City Council held four public hearings on September 13, 2021, October 25, 2021, January 10 and February 14, 2022, where the Council received briefings from the City’s demographic consultant relating to the redistricting process and state and federal redistricting criteria, including the California Elections Code, the Federal Voting Rights Act and the United States Constitution, heard public testimony, and directed staff and the City's demographic consultant to prepare draft Council district maps for consideration; and
WHEREAS, In addition, City staff conducted public outreach by way of print and digital advertisements. During the public hearings, public comment was received on redistricting criteria and communities of interest; and
Ordinance No.
WHEREAS, at the January 10, 2022 and February 14, 2022 public hearings, the Council received a presentation of several draft maps prepared by the City's demographic consultant for compliance with applicable laws and standards and reviewed additional maps submitted by the public; and
WHEREAS, at the February 14, 2022 public hearing, the City Council agreed on Map _______, designating it as the preferred map and directed that it be presented to the Council for adoption by Ordinance; and
WHEREAS, at each of the public hearings on redistricting, the Council heard testimony relating to “communities of interest,” which led the Council to reach the following determinations about communities of interest on the preferred map, as required under federal and state law:
(1) The election districts are geographically contiguous. The districts are arrayed in a simple and logical form without any islands and with minimal intrusions from the area of one district into another;
(2) To the extent practicable, the preferred map respects the geographic integrity of local neighborhoods and local communities of interest. The Council heard testimony about what constitutes communities of interest in the public’s view.
(3) The election districts are easily identifiable and understandable by residents. The districts in the preferred map form a relatively simple pattern.
(4) To the extent practicable, the election districts are geographically compact. Their configurations for the most part are compact, simple shapes, with nearby populations included in the same districts.
(5) The election districts are balanced in terms of total population and voting age population. The districts are well within the one-person/one-vote deviations permitted under federal and state voting rights laws.
(6) The election districts conform to concentration of minority voters. The preferred map creates two majority/minority voting districts.
WHEREAS, all information in the staff reports, maps, presentations, Council debate and public testimony referenced above is hereby incorporated into this decision and serves as evidentiary basis for these findings and legislative decision.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF UPLAND DOES ORDAIN AS FOLLOWS:
Section 1: This Ordinance is adopted following four noticed City Council public hearings as required by California Elections Code section 21607.1.
Ordinance No.
Section 2. Subsection (D) of Section 2.02.100 (By-District Elections) of Chapter 2.02 (City Council) of Title 2 (Administration and Personnel) of the Upland Municipal Code is hereby amended as provided in attached Exhibit A.
Section 3. City Council elections shall continue to be conducted "by districts" in four districts as set forth in Exhibit A, with a Mayor separately elected at-large.
The “term ‘by district’ . . . shall mean election of members of the legislative body by voters of the district alone,” as provided in Government Code § 34871(d).
Section 4. All ordinances and resolutions, or parts thereof in conflict with this Ordinance are hereby repealed.
Section 5: The City Manager is directed to take all necessary steps to give effect to this Ordinance. If necessary to facilitate the implementation of this Ordinance, the City Manager or his or her designee is authorized to make technical adjustments to the election district boundaries that do not substantively affect the populations in the districts, the eligibility of candidates, or the residence of elected officials within any district. The City Manager shall consult with the City Attorney concerning any technical adjustments deemed necessary and shall advise the City Council of any such adjustments required in the implementation of the districts.
Section 6. The City Clerk is hereby directed to provide a certified copy of this Ordinance to the San Bernardino County Registrar of Voters for use in subsequent Upland City Council Elections.
Section 7. Compliance with California Environmental Quality Act. This activity is exempt from environmental review under the California Environmental Quality Act (“CEQA”) (Pub. Resources Code, § 21000 et seq.) pursuant to State CEQA Guidelines (Cal. Code Regs., tit. 14, § 15000 et seq.) sections 15061(b)(3), 15320, and 15378(b)(3). The redistricting process is an organizational and administrative activity of the City, does not have the potential to result in either a direct or reasonably foreseeable indirect physical change in the environment, and is therefore not a project for purposes of CEQA. (State CEQA Guidelines, §§ 15061(b)(3); 15378(b)(5).) In the event the transition process does constitute a project, it is categorically exempt under the Class 20 (Changes in the Organization of Local Governments) categorical exemption. (State CEQA Guidelines, § 15320.) None of the exceptions to the exemptions found in State CEQA Guidelines section 15300.2 apply.
Section 8. Severability. If any section, subsection, subdivision, sentence, or clause or phrase in this Ordinance or any part thereof is for any reason held to be unconstitutional, invalid or ineffective by any court of competent jurisdiction, such decision shall not affect the validity or effectiveness of the remaining portions of this Ordinance or any part thereof. The City Council hereby declares that it would have adopted each section irrespective of the fact that any one or more subsections, subdivisions, sentences, clauses, or phrases are declared unconstitutional, invalid, or ineffective.
Ordinance No.
Section 9. Effective Date. This Ordinance shall become effective thirty (30) days from its adoption.
Section 10. Publication. The City Clerk shall certify to the adoption of this Ordinance and cause it, or a summary of it, to be published in a newspaper of general circulation printed and published within the City of Upland, pursuant to all legal requirements.
PASSED, APPROVED, AND ADOPTED this ____ day of _________, 2022.
Bill Velto, Mayor
I, Keri Johnson, City Clerk of the City of Upland, California, do hereby certify that the foregoing Ordinance was introduced at a regular meeting of the City Council of the City of Upland held on the ____ day of __________, 2022, and was adopted at a regular meeting of the City Council of the City of Upland on the ____ day of __________, 2022, by the following roll call vote:
AYES:
NOES:
ABSENT:
ABSTAINED:
ATTEST:
Keri Johnson, City Clerk
Ordinance No.
Exhibit “A”
Text Amendment to Section 2.02.100(D)
Effective for all by-district Council offices newly elected at the November 8, 2022 General Municipal Election and at each General Municipal Election thereafter, Subsection (D) or Section 2.02.100 (By-District Elections) of Chapter 2.02 (City Council) of Title 2 (Administration and Personnel) of the Upland Municipal Code is hereby amended as follows:
“2.02.100 By-district elections.
. . .
D. District Boundaries.
[MAP TO BE PROVIDED HERE]
Notwithstanding any other provision of this Section, and pursuant to California Elections Code § 21606 (a) and (b), each of the Council Members currently in office at the time this Ordinance takes effect shall continue in office until the expiration of the full term to which he or she was regularly elected or appointed. Any vacancy in or recall election for a Council term currently in effect shall be filled based on the Council districts in effect at the time the current Council term was last regularly elected.”
43.24%
33.77%
1-3.37%2-1.98%
10 National Demographics Corporation, January 3, 2022
�2021 CALIPER
Existing Districts
District 1
Total Pop 19,095
Deviation from ideal -665
% Deviation -3.37%
% Hisp 33.1%
% NH White 47%
% NH Black 5%
% Asian-American 12%
Total 14,351
% Hisp 28%
% NH White 55%
% NH Black 5%
% Asian/Pac.Isl.11%
Total 13,977
% Latino est.26%
% Spanish-Surnamed 24%
% Asian-Surnamed 6%
% Filipino-Surnamed 1%
% NH White est.63%
% NH Black 5%
Total 12,140
% Latino est.25%
% Spanish-Surnamed 23%
% Asian-Surnamed 6%
% Filipino-Surnamed 1%
% NH White est.64%
% NH Black 5%
Total 8,802
% Latino est.20%
% Spanish-Surnamed 19%
% Asian-Surnamed 5%
% Filipino-Surnamed 1%
% NH White est.69%
% NH Black est.5%
ACS Pop. Est.Total 18,878
age0-19 22%
age20-60 51%
age60plus 28%
immigrants 17%
naturalized 73%
english 74%
spanish 12%
asian-lang 9%
other lang 6%
Language Fluency Speaks Eng. "Less than Very Well"9%
hs-grad 40%
bachelor 28%
graduatedegree 17%
Child in Household child-under18 28%
Pct of Pop. Age 16+employed 62%
income 0-25k 11%
income 25-50k 9%
income 50-75k 13%
income 75-200k 52%
income 200k-plus 15%
single family 92%
multi-family 8%
rented 19%
owned 81%
Total population data from the 2020 Decennial Census.
Surname-based Voter Registration and Turnout data from the California Statewide Database.
Latino voter registration and turnout data are Spanish-surname counts adjusted using Census Population Department undercount estimates. NH White and NH Black registration and turnout counts estimated by NDC. Citizen Voting Age Pop., Age, Immigration, and other demographics from the 2015-2019 American Community Survey and Special Tabulation 5-year data.
2 19,368
-392
-1.98%
32%
48%
4%
13%
13,938
27%
57%
5%
10%
13,915
25%
23%
6%
1%
64%
5%
12,117
24%
22%
6%
1%
65%
5%
8,670
20%
19%
5%
1%
70%
4%
18,432
24%
49%
27%
16%
74%
75%
14%
6%
5%
7%
43%
24%
16%
31%
62%
8%
13%
12%
50%
17%
91%
9%
21%
79%
3 20,505
745
3.77%
55%
23%
10%
10%
12,532
45%
35%
10%
8%
9,515
46%
41%
4%
2%
41%
12%
7,310
43%
39%
4%
1%
42%
12%
4,203
38%
35%
2%
1%
48%
12%
19,261
25%
61%
14%
21%
42%
58%
31%
7%
3%
16%
50%
16%
8%
32%
71%
18%
23%
30%
27%
2%
35%
65%
74%
26%
4 20,401
641
3.24%
57%
24%
7%
8%
13,523
50%
36%
8%
6%
9,814
46%
42%
3%
1%
44%
8%
7,458
44%
40%
3%
1%
46%
8%
4,575
39%
37%
2%
1%
51%
7%
20,032
27%
56%
17%
18%
48%
62%
32%
5%
1%
14%
55%
13%
6%
34%
67%
20%
25%
22%
30%
3%
57%
43%
62%
38%
Total
79,369
1,410
7.14%
45%
35%
7%
11%
54,344
37%
46%
7%
9%
47,221
34%
31%
5%
1%
55%
7%
39,025
32%
29%
5%
1%
57%
7%
26,250
27%
25%
4%
1%
63%
6%
76,602
24%
54%
21%
18%
58%
67%
22%
7%
3%
12%
47%
20%
12%
31%
65%
14%
18%
20%
39%
9%
67%
33%
45%
55%
01/03/2022 14:10 Page 1 of 1
Total Pop
Citizen Voting Age Pop
Voter Registration
(Nov 2020)
Voter Turnout
(Nov 2020)
Voter Turnout
(Nov 2018)
Age
Immigration
Language spoken at home
Education
(among those age 25+)
Household Income
Housing Stats
District Total Population Deviation % Deviation
Hispanic
Origin
% Hispanic
Origin NH White % NH White NH Black % NH Black NH Asian % NH Asian 1 20,079 319 1.61%5,532 27.55%9,832 48.97%901 4.49%3,243 16.15% 2 20,320 560 2.83%8,000 39.37%8,870 43.65%983 4.84%1,885 9.28% 3 20,348 588 2.98%11,052 54.31%4,646 22.83%2,038 10.02%2,018 9.92% 4 18,622 -1138 -5.76%10,770 57.83%4,454 23.92%1,409 7.57%1,505 8.08% Total 79,369 -8.73%35,354 27,802 5,331 8,651 43.43%
District Total CVAP Hispanic CVAP % Hisp CVAP
NH White
CVAP
% NH White
CVAP
NH Black
CVAP
% NH Black
CVAP NH Asian CVAP
% NH Asian
CVAP
1 15,114 3,585 23.72%8,584 56.79%479 3.17%1,911 12.65%
2 15,112 4,830 31.96%7,920 52.41%702 4.65%1,026 6.79%
3 12,890 5,541 42.98%4,383 34.00%1,248 9.68%861 6.68%
4 12,865 6,119 47.56%4,077 31.69%1,256 9.76%615 4.78%
Total 55,981 20,076 24,964 3,685 4,414
Plan 102 Total Population Demographics
Plan 102 CVAP Demographics
District Total Population Deviation % Deviation
Hispanic
Origin
% Hispanic
Origin NH White % NH White NH Black % NH Black NH Asian % NH Asian 1 20,079 319 1.61%5,532 27.55%9,832 48.97%901 4.49%3,243 16.15% 2 20,320 560 2.83%8,000 39.37%8,870 43.65%983 4.84%1,885 9.28% 3 20,348 588 2.98%11,052 54.31%4,646 22.83%2,038 10.02%2,018 9.92% 4 18,622 -1138 -5.76%10,770 57.83%4,454 23.92%1,409 7.57%1,505 8.08% Total 79,369 -8.73%35,354 27,802 5,331 8,651 43.43%
District Total CVAP Hispanic CVAP % Hisp CVAP
NH White
CVAP
% NH White
CVAP
NH Black
CVAP
% NH Black
CVAP NH Asian CVAP
% NH Asian
CVAP
1 15,114 3,585 23.72%8,584 56.79%479 3.17%1,911 12.65%
2 15,112 4,830 31.96%7,920 52.41%702 4.65%1,026 6.79%
3 12,890 5,541 42.98%4,383 34.00%1,248 9.68%861 6.68%
4 12,865 6,119 47.56%4,077 31.69%1,256 9.76%615 4.78%
Total 55,981 20,076 24,964 3,685 4,414
Plan 102 Total Population Demographics
Plan 102 CVAP Demographics
District Total Population Deviation % Deviation
Hispanic
Origin
% Hispanic
Origin NH White % NH White NH Black % NH Black NH Asian % NH Asian 1 19,944 184 0.93%7,945 39.84%7,124 35.72%1,507 7.56%2,752 13.80% 2 20,472 712 3.60%6,010 29.36%10,254 50.09%831 4.06%2,812 13.74% 3 18,579 -1181 -5.98%10,357 55.75%4,577 24.64%1,738 9.35%1,395 7.51% 4 20,374 614 3.11%11,042 54.20%5,847 28.70%1,255 6.16%1,692 8.30% Total 79,369 9.58%35,354 27,802 5,331 8,651
District Total CVAP Hispanic CVAP % Hisp CVAP
NH White
CVAP
% NH White
CVAP
NH Black
CVAP
% NH Black
CVAP NH Asian CVAP
% NH Asian
CVAP
1 13,329 4,406 33.05%6,335 47.53%691 5.19%1,626 12.20%
2 15,113 3,620 23.95%8,869 58.68%654 4.33%1,771 11.72%
3 12,157 5,674 46.67%4,453 36.63%1,383 11.38%459 3.78%
4 13,745 6,375 46.38%5,385 39.18%1,050 7.64%795 5.78%
Total 54,344 20,075 25,043 3,779 4,652
Plan 103 Total Population Demographics
Plan 103 CVAP Demographics
District Total Population Deviation % Deviation
Hispanic
Origin
% Hispanic
Origin NH White % NH White NH Black % NH Black NH Asian % NH Asian 1 19,515 -245 -1.24%6,431 32.95%8,975 45.99%1,006 5.16%2,521 12.92% 2 19,585 -175 -0.89%6,250 31.91%9,350 47.74%846 4.32%2,592 13.23% 3 20,085 325 1.64%11,082 55.18%4,607 22.94%1,996 9.94%1,836 9.14% 4 20,184 424 2.15%11,591 57.43%4,870 24.13%1,483 7.35%1,702 8.43% Total 79,369 3.39%35,354 27,802 5,331 8,651
District Total CVAP Hispanic CVAP % Hisp CVAP
NH White
CVAP
% NH White
CVAP
NH Black
CVAP
% NH Black
CVAP NH Asian CVAP
% NH Asian
CVAP
1 14,547 4,008 27.55%7,957 54.70%685 4.71%1,621 11.15%
2 14,133 3,819 27.02%8,062 57.04%694 4.91%1,405 9.94%
3 12,335 5,596 45.37%4,365 35.39%1,252 10.15%865 7.01%
4 13,328 6,651 49.90%4,658 34.95%1,148 8.61%760 5.71%
Total 54,344 20,075 25,043 3,779 4,652
Plan 105 Total Population Demographics
Plan 105 CVAP Demographics
District Total Population Deviation % Deviation
Hispanic
Origin
% Hispanic
Origin NH White % NH White NH Black % NH Black NH Asian % NH Asian 1 19,515 -245 -1.24%6,431 32.95%8,975 45.99%1,006 5.16%2,521 12.92% 2 19,651 -109 -0.55%6,319 32.16%9,341 47.53%816 4.15%2,621 13.34% 3 20,085 325 1.64%11,082 55.18%4,607 22.94%1,996 9.94%1,836 9.14% 4 20,118 358 1.81%11,522 57.27%4,879 24.25%1,513 7.52%1,673 8.32% Total 79,369 3.05%35,354 27,802 5,331 8,651
District Total CVAP Hispanic CVAP % Hisp CVAP
NH White
CVAP
% NH White
CVAP
NH Black
CVAP
% NH Black
CVAP NH Asian CVAP
% NH Asian
CVAP
1 14,547 4,008 27.55%7,957 54.70%685 4.71%1,621 11.15%
2 14,027 3,844 27.41%8,198 58.45%511 3.64%1,390 9.91%
3 12,335 5,596 45.37%4,365 35.39%1,252 10.15%865 7.01%
4 13,434 6,626 49.32%4,522 33.66%1,331 9.91%775 5.77%
Total 54,344 20,075 25,043 3,779 4,652
Plan 106 Total Population Demographics
Plan 106 CVAP Demographics
District Total Population Deviation % Deviation
Hispanic
Origin
% Hispanic
Origin NH White % NH White NH Black % NH Black NH Asian % NH Asian 1 19,903 143 0.72%6,531 32.81%9,137 45.91%1,017 5.11%2,627 13.20% 2 19,813 53 0.27%6,444 32.52%9,227 46.57%867 4.38%2,721 13.73% 3 19,753 -7 -0.04%11,021 55.79%4,438 22.47%1,996 10.10%1,742 8.82% 4 19,900 140 0.71%11,358 57.08%5,000 25.13%1,451 7.29%1,561 7.84% Total 79,369 0.76%35,354 27,802 5,331 8,651
District Total CVAP Hispanic CVAP % Hisp CVAP
NH White
CVAP
% NH White
CVAP
NH Black
CVAP
% NH Black
CVAP NH Asian CVAP
% NH Asian
CVAP
1 14,658 4,038 27.55%7,988 54.50%689 4.70%1,672 11.41%
2 14,219 3,960 27.85%8,131 57.18%565 3.97%1,476 10.38%
3 12,236 5,590 45.68%4,312 35.24%1,234 10.08%842 6.88%
4 13,231 6,487 49.03%4,611 34.85%1,291 9.76%661 5.00%
Total 54,344 20,075 25,043 3,779 4,652
Plan 107 Total Population Demographics
Plan 107 CVAP Demographics
District Total Population Deviation % Deviation
Hispanic
Origin
% Hispanic
Origin NH White % NH White NH Black % NH Black NH Asian % NH Asian 1 20,747 987 4.99%6,756 32.56%9,818 47.32%1,035 4.99%2,550 12.29% 2 19,652 -108 -0.55%6,776 34.48%8,884 45.21%849 4.32%2,578 13.12% 3 19,646 -114 -0.58%10,710 54.51%4,432 22.56%1,981 10.08%1,964 10.00% 4 19,324 -436 -2.21%11,112 57.50%4,668 24.16%1,466 7.59%1,559 8.07% Total 79,369 7.20%35,354 27,802 5,331 8,651
District Total CVAP Hispanic CVAP % Hisp CVAP
NH White
CVAP
% NH White
CVAP
NH Black
CVAP
% NH Black
CVAP NH Asian CVAP
% NH Asian
CVAP
1 15,556 4,298 27.63%8,691 55.87%700 4.50%1,608 10.34%
2 14,147 4,125 29.16%7,840 55.42%615 4.35%1,484 10.49%
3 11,937 5,391 45.17%4,121 34.53%1,246 10.43%909 7.62%
4 12,705 6,260 49.27%4,390 34.55%1,219 9.59%651 5.12%
Total 54,344 20,075 25,043 3,779 4,652
Plan 108 Total Population Demographics
Plan 108 CVAP Demographics
District Total Population Deviation % Deviation
Hispanic
Origin
% Hispanic
Origin NH White % NH White NH Black % NH Black NH Asian % NH Asian 1 19,907 147 0.74%8,445 42.42%6,511 32.71%1,764 8.86%2,623 13.18% 2 20,116 356 1.80%6,063 30.14%10,089 50.15%773 3.84%2,585 12.85% 3 19,514 -246 -1.24%10,887 55.79%5,007 25.66%1,546 7.92%1,502 7.70% 4 19,832 72 0.36%9,959 50.22%6,195 31.24%1,248 6.29%1,941 9.79% Total 79,369 3.05%35,354 27,802 5,331 8,651
District Total CVAP Hispanic CVAP % Hisp CVAP
NH White
CVAP
% NH White
CVAP
NH Black
CVAP
% NH Black
CVAP NH Asian CVAP
% NH Asian
CVAP
1 13,229 4,655 35.19%6,129 46.33%854 6.46%1,317 9.96%
2 14,928 3,585 24.02%8,719 58.40%565 3.79%1,811 12.13%
3 12,948 6,135 47.38%4,820 37.23%1,270 9.81%548 4.23%
4 13,239 5,700 43.05%5,375 40.60%1,089 8.23%975 7.36%
Total 54,344 20,075 25,043 3,779 4,652
Plan 109 Total Population Demographics
Plan 109 CVAP Demographics
District Total Population Deviation % Deviation
Hispanic
Origin
% Hispanic
Origin NH White % NH White NH Black % NH Black NH Asian % NH Asian 1 20,747 987 4.99%6,756 32.56%9,818 47.32%1,035 4.99%2,550 12.29% 2 19,652 -108 -0.55%6,776 34.48%8,884 45.21%849 4.32%2,578 13.12% 3 19,678 -82 -0.42%10,742 54.59%4,336 22.03%2,047 10.40%2,019 10.26% 4 19,292 -468 -2.37%11,080 57.43%4,764 24.69%1,400 7.26%1,504 7.80% Total 79,369 7.36%35,354 27,802 5,331 8,651
District Total CVAP Hispanic CVAP % Hisp CVAP
NH White
CVAP
% NH White
CVAP
NH Black
CVAP
% NH Black
CVAP NH Asian CVAP
% NH Asian
CVAP
1 15,556 4,298 27.63%8,691 55.87%700 4.50%1,608 10.34%
2 14,147 4,125 29.16%7,840 55.42%615 4.35%1,484 10.49%
3 12,176 5,648 46.39%3,868 31.77%1,414 11.62%921 7.56%
4 12,466 6,004 48.16%4,644 37.25%1,050 8.42%639 5.12%
Total 54,344 20,075 25,043 3,779 4,652
Plan 110 Total Population Demographics
Plan 110 CVAP Demographics
District Total Population Deviation % Deviation
Hispanic
Origin
% Hispanic
Origin NH White % NH White NH Black % NH Black NH Asian % NH Asian 1 20,235 475 2.40%6,600 32.62%9,528 47.09%1,022 5.05%2,506 12.38% 2 20,164 404 2.04%6,932 34.38%9,174 45.50%862 4.27%2,622 13.00% 3 19,678 -82 -0.42%10,742 54.59%4,336 22.03%2,047 10.40%2,019 10.26% 4 19,292 -468 -2.37%11,080 57.43%4,764 24.69%1,400 7.26%1,504 7.80% Total 79,369 4.77%35,354 27,802 5,331 8,651
District Total CVAP Hispanic CVAP % Hisp CVAP
NH White
CVAP
% NH White
CVAP
NH Black
CVAP
% NH Black
CVAP NH Asian CVAP
% NH Asian
CVAP
1 15,200 4,171 27.44%8,500 55.92%689 4.53%1,583 10.41%
2 14,502 4,252 29.32%8,031 55.38%625 4.31%1,509 10.41%
3 12,176 5,648 46.39%3,868 31.77%1,414 11.62%921 7.56%
4 12,466 6,004 48.16%4,644 37.25%1,050 8.42%639 5.12%
Total 54,344 20,075 25,043 3,779 4,652
Plan 111 Total Population Demographics
Plan 111 CVAP Demographics
District Total Population Deviation % Deviation
Hispanic
Origin
% Hispanic
Origin NH White % NH White NH Black % NH Black NH Asian % NH Asian 1 19,944 184 0.93%7,945 39.84%7,124 35.72%1,507 7.56%2,752 13.80% 2 19,252 -508 -2.57%5,616 29.17%9,666 50.21%793 4.12%2,652 13.78% 3 19,919 159 0.80%11,054 55.49%4,917 24.69%1,800 9.04%1,589 7.98% 4 20,254 494 2.50%10,739 53.02%6,095 30.09%1,231 6.08%1,658 8.19% Total 79,369 5.07%35,354 27,802 5,331 8,651
District Total CVAP Hispanic CVAP % Hisp CVAP
NH White
CVAP
% NH White
CVAP
NH Black
CVAP
% NH Black
CVAP NH Asian CVAP
% NH Asian
CVAP
1 13,329 4,406 33.05%6,335 47.53%691 5.19%1,626 12.20%
2 14,359 3,400 23.68%8,459 58.91%670 4.67%1,601 11.15%
3 12,950 6,032 46.58%4,808 37.13%1,393 10.76%529 4.09%
4 13,706 6,237 45.51%5,440 39.69%1,024 7.47%895 6.53%
Total 54,344 20,075 25,043 3,779 4,652
Plan 112 Total Population Demographics
Plan 112 CVAP Demographics
Item No. 12.A
FINANCE COMMITTEE MEETING
JANUARY 26, 2022
**********
CONCLUSION/ACTION SUMMARY
1) CALL TO ORDER AND ROLL CALL
In attendance: Committee Chair Elliott, Committee Member Garcia, Treasurer Bradley, Advisory Members Leon, Moore, Teders, and Webb. Assistant City Manager Parker, and Finance Officer Bock-Helms (Finance Officer Bock-Helms was present via Zoom).
2) ORAL COMMUNICATIONS
None.
3) SALES TAX UPDATE - THIRD QUARTER OF 2021, Assistant City Manager Parker presented the third quarter sales tax update. Sales taxes are strong, with a 15.4% increase over the same quarter in 2020, led by a 37% surge in tax payments by building and construction suppliers and a 59% increase in local service station receipts.
4) FISCAL YEAR 2022/23 BUDGET UPDATE, Assistant City Manager Parker provided the Committee Members with an update on the Fiscal Year 2022/23 budget process .
The next Finance Committee meeting will include elements of the draft budget prior to the first City Council Budget Workshop on May 9.
5) BLAST STRATEGY IMPLEMENTATION UPDATE, Assistant City Manager Parker provided an update on the implementation of the BLAST strategy. $25.3 million was remitted to CalPERS in December after Council approval. Staff is moving forward with preparation for a 2022 Water Revenue Bond issuance in March, and a subsequent internal General Fund Lease Revenue Bond that would be invested in by the Water and Sewer Funds.
6) DECEMBER 31, 2021 PORTFOLIO REVIEW, Assistant City Manager Parker presented the December 31, 2021 Portfolio Review. A comparison was included that showed the changes in the City’s balances in the last quarter as a result of contributions to the Section 115 Pension Trust and distributions to CalPERS from the Trust and City accounts in conjunction with Council’s approval of the BLAST UAL Strategy.
Finance Committee Meeting
January 26, 2022
4:00 P M
Carnegie Building, 123 East D Street
***************
1.C A L L TO O R D E R A ND R O L L C A L L
2.O R A L C O MMUNI C AT I O NS
3.S A L E S TA X UP D AT E - T HI R D Q UA RT E R O F 2021
4.F I S C A L YE A R 2022/23 B UD G E T UP D AT E
5.B L A S T S T R AT E G Y I MP L E ME NTAT I O N UP D AT E
6.D E C E MB E R 31, 2021 P O RT F O L I O R E V I E W
NOT E: A ll Agenda items and back-up materials are available for public review at the U pland P ublic Library, downstairs reference desk at 450 N orth E uclid Avenue, the C ity C lerk's O ffice at 460 N orth E uclid Avenue and the C ity website at www.uplandca.gov .
I n compliance with the A mericans with D isabilities Act, if you need special assistance to participate in this meeting, please contact the C ity C lerk's Office at 909.931.4120. N otification 48 hours prior to the meeting will enable the C ity to make reasonable arrangements to ensure accessibility to this meeting. [28 C F R
35.102-35.104 A DA Title I I ]
P O S T I N G S T A T E M E N T : O n J a nua ry 2 0 , 2 0 2 2 , a t rue a nd co rre ct co p y o f t h i s a g e n d a w a s p o s t e d a t 123 E . D S t re e t (C a rne g i e B u i l d i ng ), o n t he b ul l e t i n b o a rd s a t 450 N . E ucl i d A ve nue (U p l a nd P u b l i c L i b ra ry), 460 N . E ucl i d A ve nue (U p l a n d C i t y H a l l ), a nd o n t h e C i t y's w e b s i t e a t w w w.u p l a nd ca .g o v
The full packet for the Finance Committee
meeting can be viewed on our website at:
https://uplandca.gov/finance-committee
You may also view the video of the meeting at:
https://uplandca.gov/council-meeting-
broadcasts
(choose the tab for “other archived meetings”
to locate the meeting video)
Item No. 12.B
SPECIAL ECONOMIC DEVELOPMENT COMMITTEE MEETING
JANUARY 31, 2022
**********
CONCLUSION/ACTION SUMMARY
1) CALL TO ORDER AND ROLL CALL
In attendance: Committee Chair Zuniga, Committee Member Maust, Advisory Members Galdo (Chamber Representative), Stark, Verrinder, and Waggoner, Development Services Director Dalquest, Development Services Manager Chavez, Economic Development Coordinator Picazo, and Contract Rehabilitation Programs Administrator Arellano
2) ORAL COMMUNICATIONS
Sonia Stump, introduced herself and stated she was recently hired by the Historic Downtown Upland (HDU) group to assist HDU with event coordination. She summarized some of the proposed events in the Downtown and proposed that artwork be placed in the windows of vacant spaces in the Downtown.
3) STATUS OF PROJECTS IN DOWNTOWN UPLAND, Development Services Director Dalquest provided an overview of the report on the status of projects in Downtown Upland. Contract Rehabilitation Programs Administrator Arellano and Development Services Director Dalquest presented information on the status of Downtown projects, businesses, and Housing Developments. Economic Development Coordinator Picazo provided a status update on the parking lot improvement project. Development Services Manager Chavez provided an update on the proposed project at Eden Garden for additional parking, using the underutilized vacant San Bernardino County Transportation Authority (SBCTA) property, adjacent to the restaurant.
4) STATUS ASSESSMENT ON THE 5-YEAR ECONOMIC DEVELOPMENT ACTION PLAN, Economic Development Coordinator Picazo presented information on the status of the 5-Year Economic Development Action Plan.
5) STATUS OF THE KOHL'S PROPERTY IN THE MOUNTAIN GREEN CENTER ON MOUNTAIN AVENUE AT 8TH STREET, Development Services Director Dalquest provided information on the status Kohl’s property, including an update on the new ownership, and their desire to meet with City staff to discuss the redevelopment of the property. The Economic Development Committee discussed their thoughts on redevelopment of the site and proposed the following uses: a Technology School/College, Charter School, Costco, an Event Center, Cultural Arts Center, and a venue similar to 4th Street Market in Santa Ana or Haven City in Rancho Cucamonga.
The meeting adjourned at 5:07 p.m.
Special Economic Development Committee Meeting
January 31, 2022
4:00 P M
Carnegie Building, 123 East D Street
***************
1.C A L L TO O R D E R A ND R O L L C A L L
2.O R A L C O MMUNI C AT I O NS
3.S TAT US O F P R O J E C T S I N D O W NTO W N UP L A ND
4.S TAT US A S S E S S ME NT O N T HE 5-YE A R E C O NO MI C D E V E L O P ME NT
A C T I O N P L A N
5.S TAT US O F T HE K O HL 'S P R O P E RT Y I N T HE MO UNTA I N G R E E N C E NT E R O N MO UNTA I N AV E NUE AT 8T H S T R E E T NOT E: A ll Agenda items and back-up materials are available for public review at the U pland P ublic Library, downstairs reference desk at 450 N orth E uclid Avenue, the C ity C lerk's O ffice at 460 N orth E uclid Avenue and the C ity website at www.uplandca.gov .
I n compliance with the A mericans with D isabilities Act, if you need special assistance to participate in this meeting, please contact the C ity C lerk's Office at 909.931.4120. N otification 48 hours prior to the meeting will enable the C ity to make reasonable arrangements to ensure accessibility to this meeting. [28 C F R
35.102-35.104 A DA Title I I ]
P O S T I N G S T A T E M E N T : O n J a nua ry 2 7 , 2 0 2 2 , a t rue a nd co rre ct co p y o f t h i s a g e n d a w a s p o s t e d a t 123 E . D S t re e t (C a rne g i e B u i l d i ng ), o n t he b ul l e t i n b o a rd s a t 450 N . E ucl i d A ve nue (U p l a nd P u b l i c L i b ra ry), 460 N . E ucl i d A ve nue (U p l a n d C i t y H a l l ), a nd o n t h e C i t y's w e b s i t e a t w w w.u p l a nd ca .g o v
The full packet for the Special Economic
Development Committee meeting can be
viewed on our website at:
https://uplandca.gov/economic-development-
committee
You may also view the video of the meeting at:
https://uplandca.gov/council-meeting-
broadcasts
(choose the tab for “other archived meetings”
to locate the meeting video)
S T A F F R E P O R T
I T E M N O . 13.A .
D A T E :Feb ruary 14 , 20 22
T O :M A YO R A N D C I T Y C O U N C I L
F R O M : M I C H A E L B L A Y, C I T Y M A N A G E R P R E P A R E D B Y : S T E P H E N PA R K E R , C PA , A S S I S TA N T C I T Y M A N A G E R
LO N D A B O C K-H E L M S, C PA , F I N A N C E O F F I C E R S U B J E C T :A N N U A L C O M P R E H E N S I V E F I N A N C I A L R E P O R T (A C F R ) A N D R E L A T E D R E P O R T S F O R T H E F I S C A L Y E A R E N D E D J U N E 3 0, 2 02 1
R E C O M M E N D E D A C T I O N
I t is recom m en d ed t hat t he C ity C ou ncil receive an d fi le th e A nn ual C om p reh ensive F inan cial Rep ort (A C F R ), the A u d itors C om m u nication with T hose C harg ed with G overnan ce, th e A u d i tor's Rep ort on I nt ern al C on trol over F inan cial Rep ort in g an d C om p li ance an d O th er M atters, and the I n d ep end ent A ccoun tan ts’ Rep ort of A g reed -U p on P roced u res A p p lied to A p p rop riation L im it Worksh eets for the F iscal Year E n d ed J u ne 3 0, 2 02 1.
G O A L S T A T E M E N T
Th e p rop osed ac ti on su p p ort s the C i ty's g oal to m an ag e th e C it y's resources i n a fiscally resp on sib le m an ner.
B A C K G R O U N D
Th e A nn ual C om p rehen sive F in an c ial Rep ort has b een p rep ared b y th e A d m inistrative S ervices D ep art m en t i n con form it y w it h g en erally accep ted acc ou n ti n g p rincip les. Th is rep ort in clud es all fun d s and entities t h at are wi th in th e con trol of th e C i ty. T h e act ivi ty of the S u ccessor A g ency to the Up lan d C om m u nity Red evelop m ent A g en cy is inclu d ed in th e rep ort w ithin a p rivate-p urp ose trust fu nd .
I S S U E S /A N A L Y S I S
Th e A C F R i s org anized in t h ree s ect ion s: 1) th e I ntrod uctory S ec ti on , w hi ch inclu d es the letter of t ran sm it tal , the C it y's org an izati onal chart an d a list of p rin ci p al officials for th e fiscal year end ed J u n e 3 0, 20 21 ; 2 ) th e F in ancial S ect ion , w h ic h inclu d es t he in d ep en d en t aud itor's
rep ort, m an ag em en t 's d iscu ssion an d an alys is , t he b asic fin an c ial stat em en ts an d su p p lem entary i nform at ion ; an d 3 ) t he S tat is ti cal S ect ion , w h i ch inclu d es in form ati on on fin ancial tren d s, revenu e an d d eb t cap acity, and d em og rap hic, econ om ic and op eratin g in form ation for m u ltip le years. To g ain an in it ial u nd erstan d ing of th e rep ort, th e read er is d irected to the letter of tran sm ittal and m an ag em ent's d iscussion an d an alysis.
Th e firm of Van Lan t & Fankh anel, L L P, C erti fied P u b l ic A ccoun tan ts, has con d u ct ed an in d ep end ent au d it of the fin ancial statem en ts of th e C ity of Up lan d for th e fiscal year end ed J u ne 3 0, 2 02 1 an d h as issued an "u nq ualified " op in ion th ereon . A n "un q u alified " op inion is th e h ig hest rat in g p os si b l e and m eans t h at th e au d itors b el ieve th e fin ancial s tat em en ts of the C ity fairly p resen t, in all m aterial resp ects, th e fin ancial p osition and ch ang es in finan cial p osition an d cash flows for t h e C ity for t he year en d ed J un e 3 0, 20 21 i n con form an c e w ith g en erally acc ep t ed ac cou n t in g p ri nc ip les . I n ad d it ion to their rep ort s on th e C ity's finan cial statem ents, th e i nd ep en d en t au d it ors h ave also issued t hree ot her req u ired rep ort s an d letters to th e C it y C ou ncil : an au d i tor com m u nication l ett er, a Rep ort on I ntern al C on trols O ver F inan cial Rep orting an d O n C om p l ian ce and O t h er M att ers , an d a rep ort on ag reed -up on p roced ures relat in g to th e c alc u l ati on of t h e C i ty's ap p rop ri ati ons l im it for t he year end ed J u ne 30 , 20 21 .
Th e first l ett er is a d i rec t com m u n i cat ion b etween t he aud it ors an d th e g overn in g b od y an d ad vises t he C i ty C oun cil of c ert ain sig n ifican t m at ters rel ated to th e au d i t, such as th e m ost sen sitive es ti m at es an d d i sc los ures inclu d ed i n the fin anc ial statem ents, as well as wh eth er th ey en cou ntered an y d ifficu lties in d ealin g w ith m an ag em ent or h ad any d isag reem ents w ith m an ag em ent. T he aud it ors n oted n o su ch d iffi cu lt ies or d isag reem en ts d u ri n g t he cou rse of th eir aud it.
Th e sec on d l ett er in d i cat es th at th e au d i tors d i sc overed n o d efic ien ci es in int ern al con trol th at th ey con sid ered to b e a m aterial w eaknesses or sig nificant d eficiency.
Th e third item is th e Rep ort on A g reed -U p on P roc ed u res A p p li ed to A p p rop riat ion s Lim it Worksh eets for t h e Year E n d ed J u n e 30 , 20 21 . T he au d i tors n oted n o issu es i n review in g staff's calcu lation of th e ap p rop riations lim it for F iscal Year 20 20 /21 .
F I S C A L I M P A C T S
Th ere is n o fiscal im p act associated with th is item .
A L T E R N A T I V E S
P rovid e altern ative d irection to staff.
AT TAC HM E NT S :
Description
City of Upland AC F R J une 30, 2021
Audit Communication L etter
Internal Control Letter
Appropriations Limit Report
City of Upland, California
Annual Comprehensive
Financial Report
Fiscal Year Ended
June 30, 2021
CITY OF UPLAND, CALIFORNIA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
Year Ended June 30, 2021
Prepared by
Finance Division
City of Upland
Annual Comprehensive Financial Report
Year Ended June 30, 2021
TABLE OF CONTENTS
Page
INTRODUCTORY SECTION
Letter of Transmittal i - iv
List of City Officials v
Organizational Chart vi
GFOA Certificate of Achievement for Excellence in Financial Reporting vii
FINANCIAL SECTION
Independent Auditor’s Report 1 - 3
Management’s Discussion & Analysis 4 - 12
Basic Financial Statements
Government-wide Financial Statements:
Statement of Net Position 13
Statement of Activities 14 - 15
Fund Financial Statements:
Balance Sheet - Governmental Funds 16
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position 17 Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds 18 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities
19 Statement of Net Position - Proprietary Funds 20
Statement of Revenues, Expenses and Changes in Net Position - Proprietary Funds 21 Statement of Cash Flows - Proprietary Funds 22
Statement of Net Position - Fiduciary Funds 23
Statement of Changes in Net Position - Fiduciary Funds 24 Notes to Financial Statements 25 - 60
Required Supplementary Information
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual:
General Fund 61
Housing Special Revenue Fund 62
Notes to Required Supplementary Information 63
Schedule of Changes in the Net Pension Liability – Miscellaneous Plan 64 - 65 Schedule of Changes in the Net Pension Liability - Safety Plan 66 Schedule of the City’s Proportionate Share of the Net Pension Liability 67 Schedule of Contributions 68 - 69
Schedule of Changes in the Net OPEB Liability and Related Ratios 70
Supplementary Information
Non-major Governmental Funds: 71 - 72
Combining Balance Sheet 73 - 76
Combining Statement of Revenues, Expenditures and Changes in Fund Balances 77 - 80 Budgetary Comparison Schedules for Non-major Funds:
Gas Tax 81
City of Upland
Annual Comprehensive Financial Report
Year Ended June 30, 2021
TABLE OF CONTENTS - Continued
Page
Supplementary Information - Continued
Home Program 82
CalHome Program 83
Community Development Block Grant 84
Measure I 85
Air Quality Management District 86
Parking and Business Improvement 87
SB 509 Public Safety Augmentation 88
Asset Forfeiture 89
Public Safety Grants 90
Other Grants 91
CARES Act 92
Park Acquisition and Development 93
General Capital Development 94
Storm Drain Development 95
Street and Traffic Safety Development 96
General Capital Projects 97
Street and Alley Repair 98
Energy Efficiency Improvements 99
Internal Service Funds: 100
Combining Statement of Net Position - Internal Service Funds 101 Combining Statement of Revenues, Expenses, and Changes in Net Position - Internal Service Funds 102 Combining Statement of Cash Flows - Internal Service Funds 103 Custodial Funds: 104 - 105
Combining Statement of Fiduciary Net Position 106 - 107 Combining Statement of Changes in Fiduciary Net Position - Custodial Funds 108 - 109
STATISTICAL SECTION
Net Position by Component 111 - 112
Changes in Net Position 113 - 116
Fund Balances of Governmental Funds 117 - 118
Changes in Fund Balances of Governmental Funds 119 - 120 Assessed Value and Estimated Actual Value of Taxable Property by Major Type 121 - 122 Water Sales by User Type 123
Direct and Overlapping Property Tax Rates 124 - 125
Principal Property Tax Payers 126
Principal Water Purchasers 127
Property Tax Levies and Collections 128
Ratios of Outstanding Debt by Type 129 - 130
Direct and Overlapping Debt 131
Legal Debt Margin Information 132 - 133
Pledged Revenue Coverage 134 - 135
Demographic and Economic Statistics 136
Principal Employers 137
Full-time Equivalent City Government Employees by Function 138 Capital Asset Statistics by Function 139 - 140
Operating Indicators by Function 141 - 142
INTRODUCTORY SECTION
Officials of the City of Upland
Elected Officials
Bill Velto, Mayor
Rudy Zuniga Mayor Pro Tem District 4
Janice Elliott Councilmember District 2
Carlos Garcia Councilmember District 3
Shannon Maust Councilmember District 1
Greg Bradley City Treasurer
Executive Staff
Stephen Parker, Acting City Manager
Stephen Parker Assistant City Manager
Steven Deitsch City Attorney
Robert D. Dalquest Development Services Director
Darren Goodman Chief of Police
Braden Yu Public Works Director
v Page 12 of 173
City of Upland
Organizational Chart
Fiscal Year 2020‐21
Citizens of Upland
Public WorksPolice
City Attorney
City Treasurer
City Manager
Assistant City Manager
Administrative Services Development Services
City Council
Finance
City Clerk
Human Resources
Risk Management
Information Technology
Community Services
Library
Planning
Building
Economic Development
Housing
Successor Agency
Engineering
Street Maintenance
Storm Drain Maintenance
Facility Maintenance
Park Maintenance
Solid Waste Mangement
Fleet Management
Water Utility Services
Sewer Maintenance
Investigations
Patrol
School Resource Officer
Traffic Safety
Cadet Program
Code Enforcement
Animal Control
Asset Forfeiture
vi Page 13 of 173
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Upland
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2020
Executive Director/CEO
vii Page 14 of 173
FINANCIAL SECTION
Independent Auditor’s Report
The Honorable City Council
City of Upland, California
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the City of Upland, California, as of and for the year ended June 30, 2021, and the related notes to the financial statements, which collectively comprise the City of Upland’s basic financial statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes 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.
Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We did not audit the financial statements of the West End Water Company and San Antonio Water Company, which represent 100 percent, 100 percent, and 100 percent, respectively of the assets, net position and revenues of the discretely presented component units. Those statements were audited by other auditors whose report has been furnished to us, and our opinion, insofar as it relates to the amounts included for the West End Water Company and San Antonio Water Company, is based solely on the report of the other auditors.
We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in 1 Page 16 of 173
the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the City of Upland, California, as of June 30, 2021, 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.
Change in Accounting Principle
As reported in the financial statements, in fiscal year 2020-21, the City adopted new accounting guidance, GASBS No. 84, Fiduciary Activities. Our opinion is not modified with respect to this matter.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, the budgetary comparison information, and other required supplementary information as listed in the table of contents be presented to supplement the basic financial statements.
Such information, 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 to provide any assurance.
Other 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 introductory section, the supplementary information as listed in the table of contents, and statistical section, are presented for purposes of additional analysis and are not a required part of the basic financial statements.
2 Page 17 of 173
The combining statements and schedules listed in the supplementary information section of the table of contents are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the financial statements. Such information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statement themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation the basic financial statements as a whole.
The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated January 31, 2022, on our consideration of the City of Upland’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 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 internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit.
January 31, 2022
3 Page 18 of 173
4 Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2021
The discussion and analysis of the City of Upland’s (the City) financial performance provides an overview of the City’s financial activities for the fiscal year ended June 30, 2021. It should be read in conjunction with the basic financial statements and the accompanying notes to the financial statements.
Financial Highlights
♦The City’s Total Net Position at the close of the fiscal year is $404 million; this is an increase of $15.8 million in comparison with the prior year.
♦The City’s total assets and deferred outflows increased by $30.9 million during the fiscal year. The largest change was an increase in cash and investments of $23.7 million. Other significant changes include an increase in receivables of $1.1 million, an increase in capital assets of $2.0 million an increase of $1.9 million in the value of the City’s investment in joint ventures and an increase of $2.2 million in deferred outflows. ♦The City’s liabilities and deferred inflows increased by $15.0 million. Significant changes from prior year balances include a decrease in deferred inflows of $1.5 million, an increase of $2.4 million in accounts payable, an increase of $7.6 million in unearned revenue, an increase in long-term liabilities of $6.6 million (details are presented in Footnote 5 of the financial statements).
♦As of the close of the current fiscal year, the City’s governmental funds reported combined ending fund balances of $85.3 million, an increase of $7.6 million in comparison with the prior year. ♦As of the close of the current fiscal year, the City’s enterprise funds reported combined total net position of $153.2 million, an increase of $10.1 million in comparison with the prior year. ♦At the end of the fiscal year, unassigned fund balance for the General Fund was $.25 million. This represents a decrease of $16.2 million from the prior year. Restricted fund balance increased to $10.7 million and committed fund balance increased to $15.1 million from $7.8 million in the prior year. These significant reclassifications are the result of council approving a new fund balance policy and a pension liability funding program on June 14, 2021. Council has committed/set aside money for economic uncertainties, weather emergencies, building maintenance and repairs, infrastructure improvements, and implemented a plan for reducing the unfunded pension liability. Additional information can be found in footnote 1 section P and footnote 14.
Using This Annual Report
This annual report consists of a series of financial statements. The Statement of Net Position and Statement of Activities provide information about the activities of the City as a whole and present a long-term view of the City’s finances. For governmental activities, these statements tell how these services were financed in the short-term as well as what remains for future spending. Fund financial statements report the City’s operations in more detail than the government-wide statements.
Reporting the City’s Most Significant Funds
An analysis of the City’s major funds begins on page 9. The fund financial statements begin on page 16 and provide detailed information about the most significant funds, not the City as a whole. Some funds are required to be established by State law, grant requirements or by bond covenants. The City Council has established many other funds to help it control and manage other monies for specific purposes. The City’s two kinds of funds - governmental and proprietary - use different accounting approaches.
♦Governmental funds - Most of the City’s basic services are reported in governmental funds which focus on how money flows into and out of those funds, and the balances left at year-end that are available for spending. These funds are reported using an accounting method called modified accrual accounting. This method measures cash and all other
5 financial assets that can readily be converted into cash. The governmental fund statements provide a detailed short- term view of the City’s general government operations and the basic services it provides. Governmental fund information helps the reader determine whether there are more or fewer financial resources that can be used (in the future) to finance the City’s programs. The difference of results in the governmental fund’s statements to those in the government-wide financial statements are explained in a reconciliation schedule following the governmental funds financial statements.
♦Proprietary funds - When the City charges customers for the services it provides, whether to outside customers or to other units of the City, these services are generally reported in proprietary funds. Proprietary funds are reported in the same way that all activities are reported in the Statement of Net Position and the Statement of Activities. In fact, the City’s enterprise funds (a component of proprietary funds) are the same as the business-type activities that are reported in the government-wide statements but provide more detail and additional information, such as cash flows. The City uses internal service funds (the other component of proprietary funds) to report activities that provide supplies and services for the City’s other programs and activities an example of such is the City’s Self-Insurance fund. The internal service funds are reported with governmental activities in the government-wide financial statements. ♦Fiduciary Funds – The City is responsible for other assets that, because of a trust arrangement, can be used only for the trust beneficiaries. All the City’s fiduciary activities are reported in a separate Statement of Fiduciary Net Position and Statement of Changes in Fiduciary Net Position on pages 104 and 109 respectively. The City excludes these activities from the City’s other financial statements because the City cannot use these assets to finance its operations. The City is responsible for ensuring the assets reported in these funds are used for their intended purposes.
Reporting the City as a Whole
The Statement of Net Position and the Statement of Activities include all the assets and liabilities using the accrual basis of accounting, similar to the accounting used by most private-sector companies. All the current year’s revenues and expenses are recorded regardless of when cash is received or paid. These two statements report the City’s net position and changes in net position. One can think of the City’s net position as one way to measure the City’s financial health, or financial position. Over time, increases or decreases in the City’s net position are an indicator of whether its financial health is improving or deteriorating. There are other nonfinancial factors that should be considered to assess the overall health of the City, such as, the condition of the City’s roads,
City of Upland’s Total Net Position
As noted earlier, the City’s combined Total Net Position is $404 million. The City’s net position increased by $15.8 million due to an increase in assets (including deferred outflows of resources) of $30.9 million and liabilities and deferred inflows of resources increased by $15 million. Program expenses by function, general revenues by major source, excess and/or deficiency of revenues over expenses, changes in and total net position are presented in the Statement of Activities. The City’s combined Net Position for the fiscal year ended June 30, 2021 was:
Table 1
Net Position (In Millions)
2021 2020 2021 2020 2021 2020
Current and other assets 108.5$ 90.4$ 91.8$ 83.4$ 200.3$ 173.8$ Capital assets 286.6 288.0 90.3 88.3 376.9 376.3 Total assets 395.1 378.4 182.1 171.7 577.2 550.1 Deferred outflows of resources 20.8 18.8 2.2 2.0 23.0 20.8 Long-term liabilities 144.3 138.5 25.8 24.2 170.1 162.7 Other liabilities 18.1 9.5 6.6 6.0 24.7 15.5 Total liabilities 162.4 148.0 32.4 30.2 194.8 178.2 Deferred inflows of resources 2.7 4.0 0.2 0.5 2.9 4.5 Net position:
Net investment in
capital assets 267.0 267.0 83.0 80.7 350.0 347.7 Restricted 43.4 52.2 - - 43.4 52.2 Unrestricted (59.6) (74.0) 68.7 62.3 9.1 (11.7) Total net position 250.8$ 245.2$ 151.7$ 143.0$ 402.5$ 388.2$ Activities
Governmental
TotalActivities
Business-type
The City’s programs for governmental activities include General Government, Public Safety, Public Works and Engineering, Development Services, and Community Services. The programs for business-type activities include Water, Solid Waste, and Sewer operations. A comparison of each program’s revenues and expenses is presented below:
6 Page 21 of 173
7 Table 2
Change in Net Position
(In Millions)
2021 2020 2021 2020 2021 2020
Revenues
Program Revenues
Charges for services 13.1 13.7 54.8 52.1 67.9 65.8 Operating Contributions/Grants 4.4 2.5 - - 4.4 2.5 Capital Contributions 7.2 8.2 2.9 9.9 10.1 18.1
General Revenues
Taxes
Property Taxes 18.8 18.1 - 18.8 18.1
Sales Tax 16.9 13.6 - 16.9 13.6
Franchise Taxes 1.3 1.3 - 1.3 1.3
Transient Occupancy Taxes 0.2 0.1 - 0.2 0.1
Business License Taxes 1.1 1.1 - 1.1 1.1
Other Taxes 0.3 0.3 - 0.3 0.3
Investment Income 0.9 1.2 0.1 1.2 1.0 2.4
Motor Vehicle In Lieu 0.1 0.1 - 0.1 0.1
Miscellaneous Revenues - 0.2 - -0.2
Total Revenues 64.3 60.4 57.8 63.2 122.1 123.6 Expenses
General government 2.1 3.7 - - 2.1 3.7
Public Safety 31.7 23.8 - - 31.7 23.8 Public Works 14.7 3.5 - - 14.7 3.5 Development Services 5.7 6.0 - - 5.7 6.0 Community Services 3.6 3.9 - - 3.6 3.9
Interest on long term debt 0.8 0.8 - - 0.8 0.8 Water - - 22.5 20.5 22.5 20.5 Refuse - - 14.5 13.8 14.5 13.8 Sewer - - 10.6 10.0 10.6 10.0 Total Expenses 58.6 41.7 47.6 44.3 106.2 86.0 Change in Net Position 5.7 18.7 10.2 18.9 15.9 37.6 Net Position at beginning of
year 245.2 226.5 143.0 124.1 388.2 350.6 Net Position end of year 250.8$ 245.2$ 153.2$ 143.0$ 404.0$ 388.2$ Governmental Business-type
Activities Activities Total
8 Governmental Activities
Governmental activities net position increased in total by $5.7 million. The City’s governmental activities revenue totaled $64.3 million which is a $3.9 million increase over the prior year. Significant changes are highlighted below:
♦Charges for services revenue totaled $13.1 million which is a decrease of $0.6 million or 5%, primarily related to a slight decrease in new development.
♦Operating and capital grants increased by $0.9 million or 8.4% primarily due to the City receiving a CARES Act grant from the County of San Bernardino.
♦Residential property sales of new construction, property tax resets and sales of older homes resulted in an increase of $0.7 million in property tax revenue.
♦Sales tax increased by $3.3 million or 24.3%. This year’s sales tax revenues recouped the prior year’s $0.9 million loss and bounced back with an increase of $2.4 million.
♦Even though investible cash balances increased significantly, interest rates had dropped so drastically (from 49.5% of the portfolio yielding over 1% down to 12.5% yielding over 1%) that it resulted in a decrease in investment income of $0.3 million for the year.
Governmental activities expenses totaled $58.6 million this year, which is a $16.9 million or 40.5% increase from the prior year. General Government costs decreased $1.6 million; Public Safety costs increased $7.9 million; Public Works costs increased $11.2 million; Development Services costs decreased $0.3 million while Community Services costs also decreased $0.3 million.
General Government
3.67%
Public Safety
54.06%
Engineering & Public
Works
25.01%
Development
Services
9.7%
Community Services
6.22%
Interest on long
term debt
1.34%
Governmental Expense
$58.6 Million
General Government Public Safety Engineering & Public Works Development Services Community Services Interest on long term debt
9 Business-type Activities
Total resources available during the year to finance Proprietary Fund (Business-type) activities were $143 million. Net Position as of June 30, 2021 is $153.2 million which is an increase of $10.1 million or 7.1%.
As shown in the Statement of Activities, the amount paid by users for services was $54.8 million compared to $52.1 million reported in the prior year. The cost of all Proprietary (Business-type) activities increased $3.4 million this year to $47.6 million compared to $44.2 million reported last year. Significant changes are highlighted below by specific proprietary fund.
The City’s Major Funds
The City’s governmental funds reported a combined fund balance of $85.3 million, and its enterprise funds reported combined net position of $153.2 million. Major changes are discussed below:
♦The fund balance at year-end for the City’s General Fund of $30.8 million is an increase from the prior year of $6.5 million. Revenues and other financing sources increased by $3.6 million from the prior year while expenditures and other financing uses decreased by $1.9 million. The variance existed wholly in other financing uses. The General Fund transferred $1.9 million less to help supplement other funds than it had in the previous year. Property taxes increased $0.8 million from new home sales and an increase in home resales ignited by increased property values and very low mortgage rates. Sales tax revenue increased $3.3 million which exceeded experts estimates by $2.2 million. Investment income increased by $0.06 million. Even though interest rates have dropped dramatically; the City’s portfolio still includes investments earning up to 3.3%; the General Fund’s cash balances have increased $2.4 million; and the application of GASB 31 was reported by all cash bearing funds instead of just being recorded in the General as in last year. Charges for services decreased by $0.5 million mostly related to a decrease in construction/improvement permit issuances and because of a reduction of COVID affected services. General Fund expenditures increased minimally (less than $100,000).
♦The Housing Fund’s fund balance increased $436,348 or 4.4% over prior year balances. Total revenues remained flat and total expenditures decreased by $282,860, or 6.6% and revenues still exceeded expenditures by $436,348. ♦Water Enterprise Fund operating revenues increased by $1.6 million or 5.9%. The increase resulted from the addition of the prior years’ approximate 1,000 homes completed and added to the water system throughout the year and the addition of this year’s newly constructed residential and multi-family units completed. The various components of non- operating revenue in total, decreased by $0.1 million; however, investment income alone decreased by approximately $0.6 million. Even though cash balances at the end of the year were $4.5 million higher than the previous year lower investment yields contributed but mostly the reduction was related to a change in the application of GASB 31. In the prior year, the General Fund absorbed the entire reduction of investment income from the application of GASB 31, while in the current year, the reduction was allocated amongst all the cash bearing funds. Interest was the sole non- operating expense and increased minimally this year. Total revenues exceeding total expenses by $6.9 million and additional capital contributions of $0.6 million resulted in an overall increase in Water Fund net position of $7.5 million. ♦The Solid Waste Utility Fund net position decreased approximately $0.1 million or 16.3%. Charges for services increased $0.9 million due to a service rate increase effective February 1, 2020 and, the increase in service accounts resulting from newly constructed homes. Operating expenses increased $0.7 million, net of decrease of $0.2 in administrative costs and increase of $0.9 million for contractual services which will fluctuate based on the number of bins serviced and disposal cost based on actual waste tonnage. Net position accumulation will be necessary to comply with various state mandated programs required to be implemented in the near future and will be addressed in Fiscal year 2022/23 with a proposed increase in waste disposal rates. ♦The Sewer Utility Fund net position increased by $2 million or 6.6%. Operating revenues increased by $0.2 from additional service accounts created for the newly constructed homes; otherwise, service rates have not changed for several years. Non-operating revenue, mainly investment income, decreased $0.5 million from the change in the application of GASB 31 discussed above. Operating expenses increased $0.7 million or 7.5%. The fund also received capital contributions totaling $1.6 million and a $0.3 million transfer from the Solid Waste fund.
10 General Fund Budgetary Highlights
Over the course of the year, the operating budget received several revisions. The budget amendments and supplemental appropriations approved after the beginning of the year are included in the final budget column (net of interagency transactions) on page 61 of the financial statements. Comparing the Fiscal Year 2020/21 adopted General Fund budget of $41.4 million to the final budget of $38.4 million reflects a decrease of $3.0 million. Actual expenditures for the General Fund of $38.1 million were $0.3 million less than final budgeted amounts. The Fiscal Year 2020/21 adopted revenue budget started at $39.3 million and was increased by $1.7 million to $41.0 million which reflects an expected increase in sales tax.
By the end of the year, actual General Fund revenues exceeded budgeted revenues in all but one category (other revenue) to the tune of $5.2 million. Even after increasing the budget for sales tax at mid-year, final sales tax revenue exceeded the adjusted budget by an overwhelming $2.2 million. Other notable increases were seen in the investment income ($0.7), the charges for services ($0.7), property tax revenue ($0.6) and the licenses and permits ($0.6) revenue accounts. The General Fund’s positive results for the year significantly increased fund balance allowing staff to fund reserves in compliance with the fund balance and pension funding policies approved by council in June of 2021. Fund Balance detail can be found in more detail in footnote 14.
Capital Assets and Debt Administration
Capital Assets
As of June 30, 2021, the City had $378.4 million invested in a broad range of capital assets, including police vehicles, buildings, park facilities, roads, and water and sewer lines. Capital assets (net of accumulated depreciation) increased by the minimal amount of $0.5 million. Construction of infrastructure and capital assets has decreased significantly with the onset of Corona Virus.
Table 3
Capital Assets at Year-End
(Net of Depreciation, in Millions)
2021 2020 2021 2020 2021 2020
Land 5.1$ 5.1$ 3.0$ 3.8$ 8.1$ 8.9$ Rights of way 103.4 103.4 - - 103.4 103.4 Street trees 3.5 3.5 - 3.5 3.5
Construction in progress 1.3 5.1 4.2 1.3 5.5 6.4
Other capital assets 173.3 170.9 84.5 83.3 257.8 254.2 Totals 286.6$ 288.0$ 91.7$ 88.4$ 378.4$ 376.4$ Governmental Business-type
Activities Activities Total
The City’s Fiscal Year 2020/21 capital budget appropriated another $12.3 million for capital projects, principally for the completion of its various construction and improvement projects. Additional information on the City’s capital assets can be found in Note 4 to the financial statements.
Long-Term Liabilities
As of June 30, 2021, the City had $174.9 million in outstanding debt versus $168.1 million in the prior year. This represents an increase of $6.6 million. Bond, loan, and lease debt decreased by $0.8 which is the net of annual debt service payments made in accordance with their applicable amortization schedules and a draw against a new loan agreement with the State Water Resources Control Board (SWRCB). Compensated absences increased by $0.2 million. This means more leave was earned than was taken and/or the liability increased from higher hourly rates of pay applied to employee accrued leave
11 balances. The OPEB and net unfunded pension liabilities increased by $8 million. This increase was the result of updated actuarial valuations performed by an independent Actuary and CalPERS. Claims payable decreased by $0.8 million. New claims for the year decreased slightly from the prior year; however, claims expense decreased by $0.5 million. Compared to the prior years’ increase of $0.2 million, this is a swing of $1 million in a positive direction. Management has been working hard to resolve, settle and close all claims.
Table 4
Long-Term Debt at Year-End
(In Millions)
2021 2020 2021 2020 2021 2020
Compensated Absences 2.2$ 2.0$ 0.4$ 0.4$ 2.6$ 2.4$ Net OPEB Liability/obligation 11.2 9.7 2.4 2.3 13.6 12.0 Net Pension Liability 106.4 100.7 14.0 13.5 120.4 114.2 Claims Payable 9.8 10.5 - - 9.8 10.5 Multifamily Housing Rev Bonds 12.8 13.4 - - 12.8 13.4 Energy Efficiency Lease 2.3 2.5 - - 2.3 2.5 CREBS Lease Agreement 4.4 4.5 - - 4.4 4.5 Revenue Refunding Bonds - - 7.2 7.2 7.2 7.2 SAWCO Loan Payable - - 1.0 1.4 1.0 1.4 SWRCB Loan Payable - - 0.7 - 0.7 -
Totals 149.1$ 143.3$ 25.7$ 24.8$ 174.8$ 168.1$ Additional detailed information on long-term debt activity can be found in Note 5. Claims payable information can be found in Note 9. Calculations and information related to the OPEB liability can be found in Note 6 and additional Net Pension Liability information can be found in Note 10 to the financial statements.
Economic Condition and Outlook
The City of Upland’s economic growth continued during Fiscal Year 2020/21. Real estate assessed values increased from the prior fiscal year by $546 million or a net taxable value increase of 5.6%. According to HdL, Coren and Cone (HdL), the City’s net taxable value increased another 4.2% for the 2021/22 tax roll, which is slightly less than the increase experienced countywide of 5.8%. The inflation adjustment for 2022/23 will be the full 2.0% allowed by Proposition 13 rather than the 1.036% from the prior year. The median sale price of a detached single family residential home in Upland from January through November of 2021 was $705,000, a 13.7% increase over 2020’s median price of $620,000. Sales of single-family and non-single-family properties through November of 2021 will add $236.0 million to the 2022/23 tax rolls.
A high volume of development activity is expected to continue into Fiscal Year 2022/23 resulting in increases in anticipated building permit revenue and eventually property tax and sales tax revenue.
Sales taxes in Fiscal Year 2020/21 ended a whopping 24.3% higher than the prior year as the economy rebounded from the worst of the effects of the COVID-19 pandemic. With the local economy exceeding expectations, the latest projections by HdL project FY 2021/22 sales tax revenues to exceed Fiscal Year 2020/21’s revenues by 2.3%, or $0.4 million.
Fiscal Year 2020/21 General Fund operations resulted in a surplus (revenue exceeding expenditures) for the 6th year in a row. City leadership has been working hard with the City Council to address long-term financial strategies to ensure sustainability despite the specific challenges of increased annual pension contributions, the OPEB liability, the pressure of providing new services (state mandates), addressing homelessness, the COVID-19 pandemic, and recruitment and retention of highly skilled workers.
12 Contacting the City’s Financial Management
This financial report is designed to provide our citizens, taxpayers, customers, investors, and creditors, with a general overview of the City’s finances. If you have any questions regarding this report or need additional financial information, please contact the Administrative Services Department at 460 North Euclid Avenue, Upland, CA 91785.
BASIC FINANCIAL STATEMENTS
City of Upland
Statement of Net Position
June 30, 2021
West End
Consolidated San Antonio
Water Company Water Company
Governmental Business-type December 31, December 31,
Activities Activities Total 2020 2020
ASSETS
Cash and Investments 75,735,828$ 47,761,097$ 123,496,925$ 814,725$ 7,860,496$ Receivables:
Accounts, Net 1,193,065 9,172,962 10,366,027 462,318 684,388 Accrued Interest 146,667 - 146,667 - - Notes, Net 9,727,023 - 9,727,023 - 1,032,000 Accrued Interest on Notes 2,788,506 - 2,788,506 - - Due From Other Governments 5,952,984 283 5,953,267 - - Inventory and Prepaid Items 425,634 5,120,283 5,545,917 12,751 100,588 Land Held for Resale 1,731,389 - 1,731,389 - - Restricted Assets:
Cash and Investments with Fiscal Agent - - - - - Cash and Investments 10,844,410 491,418 11,335,828 - - Investment in Joint Ventures - 29,276,580 29,276,580 - - Capital Assets, Not Being Depreciated:113,286,674 7,204,689 120,491,363 495,870 2,053,400 Capital Assets, Net of Accumulated Deprecation: 173,326,342 84,536,646 257,862,988 976,654 18,797,592 Total Assets 395,158,522 183,563,958 578,722,480 2,762,318 30,528,464
DEFERRED OUTFLOWS OF RESOURCES
OPEB Related Items 2,586,662 562,428 3,149,090 - - Pension Related Items 18,178,586 1,663,721 19,842,307 - - Total Deferred Outflows of Resources 20,765,248 2,226,149 22,991,397 - -
LIABILITIES
Accounts Payable 2,726,376 5,657,708 8,384,084 238,061 678,173 Accrued Salaries and Benefits 1,208,410 256,110 1,464,520 - - Accrued Interest Payable - 81,714 81,714 - Deposits Payable 1,486,876 491,402 1,978,278 850 Retention Payable 220,164 120,926 341,090 - Unearned Revenue 7,615,622 45,820 7,661,442 - Noncurrent Liabilities:
Due Within One Year 4,860,257 953,828 5,814,085 - 343,059 Due in More Than One Year 144,273,488 24,803,188 169,076,676 - 720,335 Total Liabilities 162,391,193 32,410,696 194,801,889 238,061 1,742,417
DEFERRED INFLOWS OF RESOURCES
OPEB Related Items 951,027 206,786 1,157,813 - - Pension Related Items 1,733,267 - 1,733,267 - - Total Deferred Inflows of Resources 2,684,294 206,786 2,891,080 - -
NET POSITION
Net Investment in Capital Assets 267,040,558 11,916,179 278,956,737 1,472,524 20,850,992 Restricted for:
Public Safety 1,905,985 - 1,905,985 - - Engineering and Public Works 9,333,328 - 9,333,328 - - Development Services 22,197,237 - 22,197,237 - - Community Services 9,971,232 - 9,971,232 - - Unrestricted (59,600,057) 141,256,446 81,656,389 1,051,733 7,935,055 Total Net Position 250,848,283$ 153,172,625$ 404,020,908$ 2,524,257$ 28,786,047$ Primary Government
Component Units
The accompanying notes are an integral part of this statement. 13 Page 29 of 173
City of Upland
Statement of Activities
Year Ended June 30, 2021
Charges Operating Capital
for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions Primary Government:
Governmental Activities:
General Government 2,148,712$ 795,356$ 2,182,663$ 181,107$ Public Safety 31,674,977 1,223,941 1,177,170 185,324 Engineering and Public Works 14,653,574 4,002,120 617 5,192,997 Development Services 5,682,894 6,066,211 998,603 - Community Services 3,642,911 934,585 74,749 1,660,086 Interest on Long-Term Debt 783,846 - - - Total Governmental Activities 58,586,914 13,022,213 4,433,802 7,219,514 Business-type Activities:
Water Utility 22,480,852 29,333,341 - 1,331,610 Solid Waste Utility 14,487,585 14,643,704 23,630 - Sewer Utility 10,663,464 10,818,913 - 1,572,005 Total Business-type Activities 47,631,901 54,795,958 23,630 2,903,615 Total Primary Government 106,218,815$ 67,818,171$ 4,457,432$ 10,123,129$ Component Units:
West End Consolidated Water Company 617,564$ 735,675$ -$ -$ San Antonio Water Company 4,097,375 5,673,061 - - Total Component Units 4,714,939$ 6,408,736$ -$ -$ General Revenues:
Taxes:
Property Taxes
Sales Taxes
Franchise Taxes
Transient Occupancy Taxes
Business License Tax
Other Taxes
Motor Vehicle in-lieu
Miscellaneous Revenues
Investment Income
Transfers In/(Out)
Total General Revenues and Transfers
Change in Net Position
Net Position - Beginning
Net Position - Ending
Program Revenues
The accompanying notes are an integral part of this statement. 14 Page 30 of 173
West End
Consolidated San Antonio
Water Company Water Company
Governmental Business-type December 31, December 31,
Activities Activities Total 2020 2020
1,010,414$ -$ 1,010,414$ -$ -$ (29,088,542) - (29,088,542) - - (5,457,840) - (5,457,840) - - 1,381,920 - 1,381,920 - - (973,491) - (973,491) - - (783,846) - (783,846) - - (33,911,385) - (33,911,385) - - - 8,184,099 8,184,099 - - - 179,749 179,749 - - - 1,727,454 1,727,454 - - - 10,091,302 10,091,302 - - (33,911,385) 10,091,302 (23,820,083) - - 118,111$ -$
- 1,575,686
118,111 1,575,686
18,818,701 - 18,818,701 - - 16,876,712 - 16,876,712 - - 1,284,525 - 1,284,525 - - 195,619 - 195,619 - - 1,119,427 - 1,119,427 - - 264,965 - 264,965 - - 57,805 - 57,805 - - 30,374 - 30,374 - - 927,392 51,079 978,471 - 141,693 - - - - - 39,606,738 51,079 39,657,817 - 141,693 5,695,353 10,142,381 15,837,734 118,111 1,717,379 245,152,929 143,030,244 388,183,173 2,406,146 27,068,668 250,848,282$ 153,172,625$ 404,020,907$ 2,524,257$ 28,786,047$ Primary Government
Net (Expense) Revenue and Changes in Net Position
Component Units
15 Page 31 of 173
City of Upland
Balance Sheet
Governmental Funds
June 30, 2021
Non-major
General Housing ARPA Governmental Total
ASSETS
Cash and Investments 18,358,303$ 3,627,896$ 7,611,599$ 39,983,782$ 69,581,580$ Cash with Fiscal Agent - - - - Restricted Cash 10,638,680 205,730 - - 10,844,410 Receivables:
Accounts 1,101,077 26,331 - 29,828 1,157,236 Accrued Interest 146,667 - - - 146,667 Notes, net 17,200 5,043,525 - 4,666,298 9,727,023 Accrued Interest on Notes - 1,517,475 - 1,271,031 2,788,506 Due from Other Governments 3,940,083 - - 2,012,901 5,952,984 Due from Other Funds 670,700 - - - 670,700 Inventory and Prepaid Items 161,450 - - - 161,450 Land Held for Resale - 1,731,389 - - 1,731,389 Total Assets 35,034,160$ 12,152,346$ 7,611,599$ 47,963,840$ 102,761,945$
LIABILITIES
Accounts Payable 1,477,230$ 87,019$ -$ 896,817$ 2,461,066$ Accrued Salaries and Benefits 1,052,487 27,772 - 61,698 1,141,957 Due to Other Funds - - - 670,700 670,700 Deposits Payable 1,250,886 204,970 - 31,020 1,486,876 Retentions Payable - - - 220,164 220,164 Unearned Revenue - - 7,606,858 8,764 7,615,622 Total Liabilities 3,780,603 319,761 7,606,858 1,889,163 13,596,385
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue 462,804 1,517,475 - 1,868,719 3,848,998 Total Deferred Inflows of Resources 462,804 1,517,475 - 1,868,719 3,848,998
FUND BALANCE (DEFICITS)
Nonspendable 178,650 - - - 178,650 Restricted 10,733,983 10,315,110 4,741 44,890,224 65,944,058 Committed 15,137,875 - - - 15,137,875 Assigned 4,491,000 - - - 4,491,000 Unassigned 249,245 (684,266) (435,021) Total Fund Balances (Deficits) 30,790,753 10,315,110 4,741 44,205,958 85,316,562 Total Liabilities, Deferred Inflows
and Fund Balances (Deficits)35,034,160$ 12,152,346$ 7,611,599$ 47,963,840$ 102,761,945$ Special Revenue
The accompanying notes are an integral part of this statement. 16 Page 32 of 173
Fund balances of governmental funds 85,316,562$
Amounts reported for governmental activities in the Statement of Net Position are different because:
Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds.
Capital Assets 399,357,828
Accumulated Depreciation (113,938,624) 285,419,204
Other long-term assets are not available to pay for current period expenditures and, therefore, are reported as unavailable revenues in the funds.3,848,998
Long term liabilities are not due and payable in the current period and are not reported in the funds.
Compensated Absences (2,098,006)
Multifamily Housing Revenue Note (12,815,172)
CREBS Lease Payable (4,441,631)
Energy Efficiency Lease Payable (2,315,655)
Net Pension Liability (103,105,366)
Net OPEB Liability (10,568,292)
Amounts for deferred inflows and deferred outflows related to the City's Net Pension Liability are not reported in the funds.
Deferred Outflows Related to Pensions 17,787,505
Deferred Inflows Related to Pensions (1,733,267)
Deferred Outflows Related to OPEB 2,438,025
Deferred Inflows Related to OPEB (896,378)
Internal service funds are used by management to charge the costs of certain activities, such as equipment management, to individual funds.
The assets and liabilities of the internal service funds must be added to the statement of net position.(5,988,244)
Net position of governmental activities 250,848,283$
City of Upland
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position
June 30, 2021
The accompanying notes are an integral part of this statement. 17 Page 33 of 173
Non-major
General Housing ARPA Governmental Total
REVENUES
Taxes 38,559,949$ -$ -$ 1,115,539$ 39,675,488$ Licenses & Permits 2,481,187 - - 3,474,003 5,955,190 Charges for Services 2,384,400 - - - 2,384,400 Fines and Penalties 542,604 - - - 542,604 Investment Income 798,468 (344) 4,741 26,441 829,306 Rental Income 802,678 4,383,012 - 73,865 5,259,555 Intergovernmental 107,264 - - 8,134,052 8,241,316 Other Revenue 616,024 76,874 - (65,138) 627,760 Total Revenues 46,292,574 4,459,542 4,741 12,758,762 63,515,619
EXPENDITURES
Current:
General Government 1,899,974 - - 355,772 2,255,746 Public Safety 24,708,858 - - 2,672,888 27,381,746 Engineering and Public Works 6,402,725 - - 8,341,931 14,744,656 Development Services 1,773,917 2,890,417 1,019,272 5,683,606 Community Services 2,917,641 - - 275,514 3,193,155 Debt Service:
Principal 182,482 557,096 - - 739,578 Interest 259,030 524,816 - - 783,846 Total Expenditures 38,144,627 3,972,329 - 12,665,377 54,782,333 Excess (Deficiency) of Revenues
over Expenditures 8,147,947 487,213 4,741 93,385 8,733,286
OTHER FINANCING SOURCES (USES)
Transfer In - - - 593,000 593,000 Transfer Out (1,664,509) (50,865) - - (1,715,374) Sale of Capital Assets 31,218 - - - 31,218 Total Other Financing Sources (Uses) (1,633,291) (50,865) - 593,000 (1,091,156) Net Change in Fund Balances 6,514,656 436,348 4,741 686,385 7,642,130 Fund Balances, Beginning 24,276,097 9,878,762 - 43,519,573 77,674,432 Fund Balances, Ending 30,790,753$ 10,315,110$ 4,741$ 44,205,958$ 85,316,562$ Special Revenue
City of Upland
Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds
Year Ended June 30, 2021
The accompanying notes are an integral part of this statement. 18 Page 34 of 173
Net change in fund balances-total governmental funds 7,642,130$ 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.
Capital Expenditures 5,488,622
Depreciation Expense (7,189,562)
Revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. 735,431 The issuance of long-term debt provides current financial resources to governmental funds, while the repayment of principal of long-term debt consumes the current financial resources of governmental funds.
Neither transaction, however, has any effect on net position. Also, government funds report the effect of premiums, discounts and similar items when debt is first issued, whereas these amounts are deferred and amortized in the Statement of Activities. The effect of these differences are as follows:
Principal Paid on Capital Leases 182,480
Principal Paid on Housing Revenue Note 557,098
Some expenses reported in the Statement of Activities do not require the use of current financial resources and are not reported as governmental fund expenditures:
Net Change in Compensated Absences (167,031)
Net Change in Net Pension Liability (5,544,185)
Net Change in Net OPEB Liability (1,523,502)
Net Change in Deferred Outflows Pension Related Amounts 642,215 Net Change in Deferred Inflows Pension Related Amounts 979,244 Net Change in Deferred Outflows OPEB Related Amounts 1,297,640 Net Change in Deferred Inflows OPEB Related Amounts 232,862 Internal service funds are used by management to charge the costs of certain activities, such as equipment management, to individual funds.
The net revenue (expense) of the internal service funds is reported with governmental activities.2,361,912
Change in net position of governmental activities 5,695,354$ City of Upland
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities Year Ended June 30, 2021
The accompanying notes are an integral part of this statement. 19 Page 35 of 173
City of Upland
Statement of Net Position
Proprietary Funds
June 30, 2021
Governmental
Activities
Water Solid Waste Sewer Internal
Utility Utility Utility Totals Service Funds
ASSETS
Current Assets:
Cash and Investments 28,649,499$ 1,912,357$ 17,199,241$ 47,761,097$ 6,154,248$ Accounts Receivable, Net 5,574,875 1,549,095 2,048,992 9,172,962 35,829 Due from Other Governments - 115 168 283 - Inventory and Prepaid Items 5,120,283 - - 5,120,283 264,184 Total Current Assets 39,344,657 3,461,567 19,248,401 62,054,625 6,454,261 Noncurrent Assets:
Restricted Cash and Investments 452,746 - 38,672 491,418 - Equity Interest 29,276,580 - - 29,276,580 - Capital Assets, Not Being Depreciated:
Land 2,954,861 - - 2,954,861 - Construction in Progress 3,991,862 55,482 202,484 4,249,828 52,388 Capital Assets, Net of Accumulated Depreciation 65,590,804 - 18,945,842 84,536,646 1,141,424 Total Noncurrent Assets 102,266,853 55,482 19,186,998 121,509,333 1,193,812 Total Assets 141,611,510 3,517,049 38,435,399 183,563,958 7,648,073
DEFERRED OUTFLOWS OF RESOURCES
OPEB Related Items 386,078 36,215 140,135 562,428 148,637 Pension Related Items 991,440 169,818 502,463 1,663,721 391,081 Total Deferred Outflows of Resources 1,377,518 206,033 642,598 2,226,149 539,718
LIABILITIES
Current Liabilities:
Accounts Payable 2,868,401 1,557,194 1,232,113 5,657,708 265,310 Accrued Salaries and Benefits 172,139 22,895 61,076 256,110 66,453 Accrued Interest Payable 81,714 - - 81,714 - Unearned Revenue - 45,820 - 45,820 - Retentions Payable 116,586 - 4,340 120,926 - Deposits Payable 452,730 - 38,672 491,402 - Current Portion of Long-Term Liabilities:
Claims and Judgments Payable - - - - 2,949,359 Compensated Absences 141,036 14,883 58,909 214,828 59,876 Loans Payable 344,000 - - 344,000 - Revenue Bonds Payable 395,000 - - 395,000 - Total Current Liabilities 4,571,606 1,640,792 1,395,110 7,607,508 3,340,998 Noncurrent Liabilities:
Claims and Judgments Payable - - - - 6,798,090 Net OPEB Liability 1,671,981 156,962 607,373 2,436,316 644,225 Net Pension Liability 8,342,944 1,429,018 4,228,212 14,000,174 3,290,945 Compensated Absences 103,228 12,911 58,785 174,924 47,128 Loans Payable 1,354,627 - - 1,354,627 - Revenue Bonds Payable 6,837,147 - - 6,837,147 - Total Noncurrent Liabilities 18,309,927 1,598,891 4,894,370 24,803,188 10,780,388 Total Liabilities 22,881,533 3,239,683 6,289,480 32,410,696 14,121,386
DEFERRED INFLOWS OF RESOURCES
OPEB Related Items 141,948 13,315 51,523 206,786 54,649 Pension Related Items - - - - - Total Deferred Outflows of Resources 141,948 13,315 51,523 206,786 54,649
NET POSITION
Net Investment in Capital Assets (7,232,147) - 19,148,326 11,916,179 1,193,812 Unrestricted 127,197,694 470,084 13,588,668 141,256,446 (7,182,056) Total Net Position 119,965,547$ 470,084$ 32,736,994$ 153,172,625$ (5,988,244)$ Business-type Activities - Enterprise Funds
The accompanying notes are an integral part of this statement. 20 Page 36 of 173
City of Upland
Statement of Revenues, Expenses, and Changes in Net Position Proprietary Funds
Year Ended June 30, 2021
Governmental
Activities
Water Solid Waste Sewer Internal
Utility Utility Utility Totals Service Funds
OPERATING REVENUES
Charges for Services 28,463,489$ 14,643,704$ 10,403,089$ 53,510,282$ 8,104,210$ Licenses and Permits 690,512 - 414,697 1,105,209 - Other 179,340 1,127 180,467 149,051 Total Operating Revenue 29,333,341 14,643,704 10,818,913 54,795,958 8,253,261
OPERATING EXPENSES
Administrative Costs 4,272,513 1,490,775 478,345 6,241,633 - Maintenance and Operations 17,355,663 - 2,862,991 20,218,654 4,012,044 Contractual Services 238,650 12,996,810 6,539,634 19,775,094 283,919 Customer Service 170,209 - - 170,209 - Claims Expense - - - - 2,572,231 Depreciation 2,160,657 - 780,989 2,941,646 250,226 Total Operating Expenses 24,197,692 14,487,585 10,661,959 49,347,236 7,118,420 Operating Income (Loss) 5,135,649 156,119 156,954 5,448,722 1,134,841
NONOPERATING REVENUES (EXPENSES)
Investment Income 21,210 (6,015) 35,884 51,079 38,047 Share of Joint Venture Net Income (loss) 1,908,828 - - 1,908,828 - Gain/ (Loss) on Disposal of Capital Assets 137,321 - (1,505) 135,816 66,650 Interest Expense (329,309) - - (329,309) - Intergovernmental - 23,630 - 23,630 - Total Nonoperating Revenues (Expenses)1,738,050 17,615 34,379 1,790,044 104,697 Income Before Contributions and Transfers 6,873,699 173,734 191,333 7,238,766 1,239,538 Capital Contributions 1,331,610 - 1,572,005 2,903,615 - Transfers In - - 265,000 265,000 1,315,374 Transfers Out - (265,000) - (265,000) (193,000) Change in Net Position 8,205,309 (91,266) 2,028,338 10,142,381 2,361,912 Total Net Position, Beginning 111,760,238 561,350 30,708,656 143,030,244 (8,350,156) Total Net Position, Ending 119,965,547$ 470,084$ 32,736,994$ 153,172,625$ (5,988,244)$ Business-type Activities - Enterprise Funds
The accompanying notes are an integral part of this statement. 21 Page 37 of 173
City of Upland
Statement of Cash Flows
Proprietary Funds
Year Ended June 30, 2021
Governmental
Activities
Water Solid Waste Sewer Internal
Utility Utility Utility Totals Service Funds
Cash Flows from Operating Activities
Cash Received from Customers 28,729,651$ 14,736,158$ 10,633,221$ 54,099,030$ -$ Cash Received from User Departments - - - - 8,253,898 Cash Paid to Suppliers for Goods and Services (16,917,497) (14,046,368) (7,864,444) (38,828,309) (6,101,491) Cash Paid to Employees for Services (4,021,802) (428,749) (1,099,540) (5,550,091) (1,385,412) Net Cash from Operating Activities 7,790,352 261,041 1,669,237 9,720,630 766,995 Cash Flows from Noncapital Financing Activities
Grant Revenue - 23,630 - 23,630 - Cash Paid (to) from Other Funds - (265,000) 265,000 - 1,122,374 Net Cash from Noncapital Financing Activities - (241,370) 265,000 23,630 1,122,374 Cash Flows from Capital and Related Financing Activities Acquisition and Construction of Capital Assets (3,330,485) (55,482) (305,555) (3,691,522) (560,663) Proceeds from the Sale of Assets 359,638 - 29,350 388,988 66,650 Proceeds from Loans Issued 666,627 - - 666,627 - Principal Paid on Debt (724,000) - - (724,000) - Interest Paid on Debt (367,434) - - (367,434) - Net Cash from Capital and Related Financing Activities (3,395,654) (55,482) (276,205) (3,727,341) (494,013) Cash Flows from Investing Activities
Interest on Investments 21,210 (6,015) 35,884 51,079 38,047 Net Cash from Investing Activities 21,210 (6,015) 35,884 51,079 38,047 Net Increase (Decrease) in Cash and Cash Equivalents 4,415,908 (41,826) 1,693,916 6,067,998 1,433,403 Cash and Cash Equivalents, Beginning of Year 24,686,337 1,954,183 15,543,997 42,184,517 4,720,845 Cash and Cash Equivalents, End of Year 29,102,245$ 1,912,357$ 17,237,913$ 48,252,515$ 6,154,248$ Reconciliation of Operating Income to Net Cash
Provided (Used) by Operating Activities
Operating income (loss)5,135,649$ 156,119$ 156,954$ 5,448,722$ 1,134,841$ Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities:
Depreciation 2,160,657 - 780,989 2,941,646 250,226 (Increase) Decrease in Accounts Receivable (478,560) 87,267 (185,680) (576,973) 637 (Increase) Decrease in Due from Other Governments - - (12) (12) - (Increase) Decrease in Inventory and Prepaid Items 100,898 - - 100,898 (68,980) (Increase) Decrease in Deferred Outflows - Pensions 117,699 (4,079) (28,396) 85,224 12,481 (Increase) Decrease in Deferred Outflows - OPEB (199,699) (18,314) (61,011) (279,024) (68,158) Increase (Decrease) in Accounts Payable 1,087,889 (107,415) 521,667 1,502,141 113,792 Increase (Decrease) in Accrued Salaries and Benefits 17,280 3,365 7,309 27,954 3,562 Increase (Decrease) in Retention Payable 111,951 - 4,340 116,291 - Increase (Decrease) in Deposits Payable (125,130) - - (125,130) - Increase (Decrease) in Compensated Absences 21,445 (7,535) (9,311) 4,599 22,729 Increase (Decrease) in Net Pension Liability (193,188) 153,457 579,704 539,973 185,058 Increase (Decrease) in Net OPEB Liability 193,747 14,985 (20,190) 188,542 5,924 Increase (Decrease) in Deferred Inflows - Pensions (117,677) (17,585) (50,298) (185,560) (42,817) Increase (Decrease) in Deferred Inflows - OPEB (42,609) (4,411) (26,828) (73,848) (25,042) Increase (Decrease) in Unearned Revenue - 5,187 - 5,187 - Increase (Decrease) in Claims and Judgments - - - - (757,258) Net Cash Provided (Used) by Operating Activities 7,790,352$ 261,041$ 1,669,237$ 9,720,630$ 766,995$ Non Cash Investing, Capital and Financing Activities:
Amortization of Premium on Bonds 34,347$ -$ -$ 34,347$ -$ Contributions of Capital Assets 1,331,610 - 1,572,005 2,903,615 - Business-type Activities - Enterprise Funds
The accompanying notes are an integral part of this statement. 22 Page 38 of 173
Successor
Agency
OPEB Private-purpose Custodial
Trust Fund Trust Fund Funds
ASSETS
Cash and Investments -$ 3,261,619$ 6,483,472$ Cash and Investments with Fiscal Agent - 2,255,937 20,749,562 Investments:
Moderate Index PLUS 1,614,610 - - Notes Receivable,Net - 302,383 - Land Held for Resale 3,358,000 22,540 Total Assets 1,614,610 9,177,939 27,255,574
DEFERRED OUTFLOWS OF RESOURCES
Deferred Charge on Refunding - 249,476 -
LIABILITIES
Accounts Payable - 648 1,073,571 Accrued Salaries and Wages - 178,977 - Deposits Payable - - 376,921 Interest Payable - 262,694 - Bonds Payable - 20,341,067 -
Total Liabilities - 20,783,386 1,450,492
NET POSITION
Restricted for:
OPEB 1,614,610 - -
Successor Agency - (11,355,971) - Individuals and Organizations - - 21,124,702 Other Governments - - 4,680,380 1,614,610$ (11,355,971)$ 25,805,082$
City of Upland
Statement of Net Position
Fiduciary Funds
June 30, 2021
The accompanying notes are an integral part of this statement. 23 Page 39 of 173
Successor
Agency
OPEB Private-purpose Custodial
Trust Fund Trust Fund Funds
ADDITIONS
Contributions:
Taxes and assessments collected for others -$ 3,221,742$ 5,588,856$ Employer Contributions 225,000 - - Contributions from Bondholders - - 8,499,405 Miscellaneous - 250 - Investment Earnings:
Interest Income 231,516 28,434 3,695 Total Additions 456,516 3,250,426 14,091,956
DEDUCTIONS
General and Administrative - - 2,087,825 Development Services - 344,324 - Recipient Payments - - 2,505,240 Distributions to Shareholders - - 3,840,853 Interest Expense - 584,820 - Other Expenses 6,956 - - Total Deductions 6,956 929,144 8,433,918 Change in Net Position 449,560 2,321,282 5,658,038 Net Position - Beginning of Year, Restated 1,165,050 (13,677,253) 20,147,044 Net Position - End of Year 1,614,610$ (11,355,971)$ 25,805,082$ City of Upland
Statement of Changes in Net Position
Fiduciary Funds
Year Ended June 30, 2021
The accompanying notes are an integral part of this statement. 24 Page 40 of 173
City of Upland
Notes to Financial Statements
Year Ended June 30, 2021
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The basic financial statements of the City of Upland, California (City) have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The more significant of the City’s accounting policies are described below.
A) Financial Reporting Entity
The City was incorporated on May 15, 1906 under the general laws of the State of California. The City is governed by an elected five-member board.
As required by generally accepted accounting principles, these financial statements present the City and its component units, entities for which the City is considered to be financially accountable. The City is considered to be financially accountable for an organization if the City appoints a voting majority of that organization’s governing body and the City is able to impose its will on that organization or there is a potential for that organization to provide specific financial benefits to or impose specific financial burdens on the City. The City is also considered to be financially accountable for an organization if that organization is fiscally dependent (i.e., it is unable to adopt its budget, levy taxes, set rates or charges, or issue bonded debt without approval from the City). In certain cases, other organizations are included as component units if the nature and significance of their relationship with the City are such that their exclusion would cause the City’s financial statements to be misleading or incomplete. 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 are, in substance, part of the primary government’s operations, even though they are legally separate entities. Thus, blended component units are appropriately presented as funds of the primary government. Each discretely presented component unit is reported in a separate column in the government-wide financial statements to emphasize that it is both legally and substantively separate from the government.
Blended Component Unit
The Upland Public Financing Authority (Authority) is a Joint Exercise of Powers Authority under the Laws of the State of California. The Authority is authorized to issue bonds under the Mark-Roos Local Bond Pooling Act of 1985 (Article 1 through 4, Section 6500). The City and the former Community Redevelopment Agency formed the Authority in December 1988, by execution of a Joint Exercise of Powers Agreement. The purpose of the Authority is to provide financing to the City for various project purposes. Since the City Council serves as the governing board for the Authority, it is considered to be a blended component unit. Blended component units, although legally separate entities, are in substance, part of the City’s operations and so data from these units are reported with the data of the primary government. Separate financial statements are not issued for the Authority.
Discretely Presented Component Units
The West End Consolidated Water Company (Company) is a mutual water company and, in accordance with the Internal Revenue Code Section 501(c)(12), is exempt from Federal income taxes. The Company was formed to provide water services to its shareholders. As of June 30, 2021, the City of Upland owns 91% of the outstanding stock of the Company, representing a majority equity interest. The primary purpose of stock ownership is to secure rights to well water pumped. The Company is governed by a 5 member board, made up of one member appointed from each participating agency. 25 Page 41 of 173
City of Upland
Notes to Financial Statements
Year Ended June 30, 2021
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued
The San Antonio Water Company is a mutual water company and, in accordance with the Internal Revenue Code Section 501(c)(12), is exempt from Federal income taxes. The Company was formed to develop, distribute, supply and deliver water to its shareholders. As of June 30, 2021, the City of Upland owns 68% of the outstanding stock of the Company, representing a majority equity interest. The primary purpose of stock ownership is to secure rights to well water pumped. The Company is governed by a 7-member board of directors elected annually by the shareholders. One Upland City Council member is also on the board of the Company.
Separately issued financial reports are available for the West End Consolidated Water Company and the San Antonio Water Company. These reports may be obtained by contacting the following offices:
B) Basis of Accounting and Measurement Focus
The basic financial statements of the City are composed of the following:
a) Government-wide financial statements
b) Fund financial statements
c) Notes to the basic financial statements
Government-wide Financial Statements:
Government-wide financial statements display information about the reporting entity as a whole, except for its fiduciary activities. These statements include separate columns for the governmental and business-type activities of the primary government (including its blended component units), as well as its discretely presented component units. Eliminations have been made in the Statement of Activities so that certain allocated expenses are reported only once (by the function to which they were allocated). However, general government expenses have not been allocated as indirect expenses to the various functions of the City.
Government-wide financial statements are presented using the economic resources measurement focus and the accrual basis of accounting. Under the economic resources measurement focus, all (both current and long-term) economic resources and obligations of the reporting government are reported in the government- wide financial statements. Basis of accounting refers to when revenues and expenses are recognized in the accounts and reported in the financial statements. Under the accrual basis of accounting, revenues, expenses, gains, losses, assets, and liabilities resulting from exchange and exchange-like transactions are recognized when the exchange takes place. Revenues, expenses, gains, losses, assets and liabilities resulting from nonexchange transactions are recognized in accordance with the requirements of GASB Statement No. 33.
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 and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function. Program revenues are netted with program expenses in the statement of activities to present the net cost of each program. Taxes and other items not included among program revenues are reported instead as general revenues.
West End Consolidated Water Company San Antonio Water Company 460 N. Euclid Avenue 139 N. Euclid Avenue
Upland, CA 91785 Upland, CA 91786
26 Page 42 of 173
City of Upland
Notes to Financial Statements
Year Ended June 30, 2021
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued
Amounts paid to acquire capital assets are capitalized as assets in the government-wide financial statements, rather than reported as an expense. Proceeds of long-term debt are recorded as a liability in the government- wide financial statements. Amounts paid to reduce long-term indebtedness of the reporting government are reported as a reduction of the related liability, rather than as an expense.
As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are payments in-lieu of taxes where the amounts are reasonably equivalent in value to the interfund services provided and other charges between the government’s water and sewer function and various other functions of the government. Elimination of these charges would distort the direct cost and program revenues reported for the various functions concerned.
Fund Financial Statements
The underlying accounting system of the City is organized and operated on the basis of separate funds, each of which is considered to be a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures or expenses, as appropriate. Governmental resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled.
Fund financial statements for the primary government’s governmental, proprietary, and fiduciary funds are presented after the government-wide financial statements. These statements display information about the major funds individually and nonmajor funds in the aggregate for governmental and enterprise funds.
Fiduciary statements include financial information for fiduciary funds. Fiduciary funds of the City primarily represent assets held by the City in a custodial capacity for other individuals or organizations.
Governmental Funds
The 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. General capital asset acquisitions are reported as expenditures in governmental funds. Issuance of long-term debt and acquisitions under capital leases are reported as other financing sources.
Sales taxes, property taxes, franchise taxes, intergovernmental revenue and rental income associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period to the extent normally collected within the availability period. Other revenue items are considered to be measurable and available when cash is received by the government.
Non-current portions of long-term receivables due from governmental funds are reported on their balance sheets in spite of their spending measurement focus. Special reporting treatments are used to indicate, however, that they should not be considered “available spendable resources,” since they do not represent net current assets.
27 Page 43 of 173
City of Upland
Notes to Financial Statements
Year Ended June 30, 2021
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued
Proprietary and Fiduciary Funds
The City’s enterprise and internal service funds are considered proprietary funds. Proprietary funds and fiduciary funds are presented using the accrual basis of accounting. Revenues are recognized when they are earned and expenses are recognized when the related goods or services are delivered. Proprietary funds are presented using the economic resources measurement focus. This means that all assets and all liabilities (whether current or noncurrent) associated with their activity are included on their balance sheets.
Proprietary fund type operating statements present increases (revenues) and decreases (expenses) in total net position.
Proprietary fund operating revenues, such as charges for services, result from exchange transactions associated with the principal activity of the fund. Exchange transactions are those in which each party receives and gives up essentially equal values. Non-operating revenues, such as subsidies, taxes, and investment earnings result from nonexchange transactions or ancillary activities. Amounts paid to acquire capital assets are capitalized as assets in the enterprise fund financial statements, rather than reported as an expense. Proceeds of long-term debt are recorded as a liability in the enterprise fund financial statements, rather than as another financing source. Amounts paid to reduce long-term indebtedness of the enterprise fund are reported as a reduction of the related liability, rather than as an expense.
The custodial funds account for monies held for the benefit of other organizations and governments to which the City provides accounting and investing services. The private-purpose trust funds are reported using the economic resources measurement focus and the accrual basis of accounting.
C) Fund Classifications
The City reports the following major governmental funds:
General Fund - 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. The General Fund finances the basic services provided to residents including police and recreation.
Housing Fund - This fund accounts for the activities of the City that were previously reported in the low- and moderate-income housing redevelopment agency fund of the former Community Redevelopment Agency.
The primary source of revenue is from rental income.
ARPA Fund - This fund accounts for the monies received and restricted by the American Rescue Plan Act.
The City reports the following major enterprise funds:
Water Utility Fund - This fund accounts for the sale of water to the City’s citizens and businesses and also records expenditures for water operations and capital improvement projects.
Solid Waste Utility Fund - This fund accounts for the refuse pick-up services provided by private contract.
Billing and collection is accomplished by City staff for residential services and by the contracted agency for commercial services. Activities include recycling and green waste programs.
Sewer Utility Fund - This fund records all City sewer service transactions, and also includes the storm drain maintenance and NPDES programs.
28 Page 44 of 173
City of Upland
Notes to Financial Statements
Year Ended June 30, 2021
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued
Additionally, the City reports the following fund types:
Internal Service Funds - These funds are used to account for self-funded insurance, fleet management, information systems, and building maintenance and operations. Departments of the City are charged for the services provided or benefits received from these funds.
OPEB Trust Fund – Used to account for the prefunding of post-employment benefits other than pension.
Private Purpose Trust Fund - Used to account for the activities of the Redevelopment Obligation Retirement Fund, and other Successor Agency activities. Resources are accumulated to retire obligations previously incurred by the former Community Redevelopment Agency.
Custodial Funds - Used to account for monies held for assessment districts and for the Welfare Committee.
D) Cash and Investments
Investments are reported in the accompanying balance sheet at fair value, except for certain certificates of deposit and investment contracts that are reported at cost because they are not transferable and they have terms that are not affected by changes in market interest rates.
Changes in fair value that occur during a fiscal year are recognized as investment income reported for that fiscal year. Investment income includes interest earnings, changes in fair value, and any gains or losses realized upon the liquidation or sale of investments.
The City pools cash and investments of all funds, except for assets held by fiscal agents. Each fund’s share in this pool is displayed in the accompanying financial statements as cash and investments. Investment income earned by the pooled investments is allocated to the various funds based on each fund’s average cash and investment balance.
For purposes of the statement of cash flows, cash equivalents are defined as short-term, highly liquid investments that are both readily convertible to known amounts of cash or so near their maturity that they present insignificant risk of changes in value because of changes in interest rates, and have an original maturity date of 3 months or less. Cash equivalents represent the proprietary funds’ share in the cash and investment pool of the City.
E) Inventories and Prepaid Items
Inventories held by the General Fund and Water Fund are recorded at cost on a first-in, first-out basis and, for the General Fund, are recorded as expenditures as used (the consumption method). General Fund inventories consist primarily of fuel, office supplies, and small hand tools. Water Fund inventory consists of stored water.
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both the government-wide and fund financial statements. The cost of prepaid items is recorded as expenditures/expenses when consumed rather than when purchased.
29 Page 45 of 173
City of Upland
Notes to Financial Statements
Year Ended June 30, 2021
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued
F) Land Held for Resale
Land held for resale represents land that was acquired for resale in accordance with the objective of the Redevelopment Project Area. These costs will be charged to current year project expenditures when the related land and structures are sold. Land held for resale is valued at the lower of cost or the sales price per contract with the developer.
G) Property Taxes
Under California law, property taxes are assessed and collected by the counties up to 1% of assessed value, plus other increases approved by the voters. The property taxes go into a pool, and are then allocated to the cities based on complex formulas. Accordingly, the City accrues only those taxes which are received within 60 days after year end. The property tax calendar is as follows:
H) Claims and Judgements
The City records a liability for litigation, judgments, and claims when it is probable that an asset has been impaired or a liability (including incurred but not reported) has been incurred prior to yearend and the probable amount of loss (net of any insurance coverage) can be reasonably estimated. This liability is recorded in the internal service fund that accounts for the City’s self-insurance activities.
I) Employee Leave Benefits
Vacation: The City’s policy permits employees to accumulate earned but unused vacation and similar compensatory leave balances, which are eligible for payment upon separation from City service. The liability for such leave is reported as incurred in the government-wide and proprietary fund financial statements. A liability for those amounts are recorded in the governmental funds only if the liability has matured as a result of employee resignations or retirements. The liability for compensated absences includes salary-related benefits, where applicable.
Sick Leave: A liability is recorded for unused sick leave balances only to the extent that it is probable that the unused balances will result in payments upon retirement. This is estimated by including in the liability the unused balances of employees currently entitled to receive a payment upon retirement, as well as those who are expected to become eligible to receive the benefit payout as a result of continuing their employment with the City. Other amounts of unused sick leave are excluded from the liability since their payment is contingent solely upon the occurrence of a future event (illness) which is outside the control of the City and the employee.
Lien date January 1 December 30% Advance
Levy date July 1 January Collection No. 1
Due date November 1 and February 1 April 10% Advance
Delinquent dates December 11 and April 11 May Collection No. 2 July Collection No. 3
Property Tax Calendar County Remittance Dates and Percentages 30 Page 46 of 173
City of Upland
Notes to Financial Statements
Year Ended June 30, 2021
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued
J) Capital Assets
Capital assets (including infrastructure) greater than $5,000 are capitalized and recorded at cost or at the estimated fair value of the assets at the time of acquisition where complete historical records have not been maintained. Contributed capital assets are valued at their acquisition value at the date of the contribution.
The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized.
Capital assets include public domain (infrastructure) general capital assets consisting of certain improvements including roads, bridges, curbs and gutters, streets and sidewalks, medians, sewers and storm drains. As allowed by GASB Statement No. 34, certain infrastructure assets that were acquired, reconstructed or significantly improved prior to June 30, 1980 have not been included in the City’s financial statements due to the unavailability of the information. Interest incurred during the construction phase of capital assets of enterprise funds is included as part of the capitalized value of the assets constructed.
Land and construction in progress are not depreciated. The other property, plant, equipment and infrastructure are depreciated using the straight-line method over the following estimated useful lives:
K) Notes and Loans Receivable
The accompanying financial statements report certain loans receivable for loans made to private developers, private homeowners, and other parties. Where applicable, an allowance for doubtful accounts has been recorded to reflect management’s best estimate of probable losses associated with non- repayment.
L) Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element represents consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/ expenditure) until then. The City has certain items that qualify for reporting in this category: 1) a deferred charge on refunding resulting from the difference in the carrying value of refunded debt and its reacquisition price, which is deferred and amortized over the shorter of the life of the refunded or refunding debt, and 2) deferred outflows relating to the City’s net pension and OPEB liabilities.
In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element 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 reports deferred inflows for certain items under the modified accrual basis of accounting. Accordingly, unavailable revenue is reported only in the governmental funds balance sheet.
The governmental funds report unavailable revenues related to interest earned on loans. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available.
The City also reports deferred inflows relating to the net pension and OPEB liabilities.
Buildings and Improvements 50 years Pipelines and Reservoirs 50 years Park Improvements 10-50 years Treatment Facilities 50 years Equipment 5-10 years Wells/Pumps 10-50 years
Vehicles 5-10 years Sewer Manholes 50 years
Infrastructure - Street System 30-100 years Equipment and Machinery 5-10 years Infrastructure - Storm Drains 100 years Vehicles 5-10 years Governmental Activities Business-type Activities
31 Page 47 of 173
City of Upland
Notes to Financial Statements
Year Ended June 30, 2021
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued
M) 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.
N) Other Postemployment Benefits (OPEB)
For purposes of measuring the total OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, 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, 2019 Valuation Date; June 30, 2020 Measurement Date; and July 1, 2019 through June 30, 2020 Measurement Period.
O) Net Position Flow Assumption
Sometimes the City will fund outlays for a particular purpose from both restricted (e.g., restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted net position and unrestricted net position in the government-wide and proprietary fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the City’s policy to consider restricted net position to have been depleted before unrestricted net position.
P) Fund Balance
Nonspendable Fund Balance: this includes amounts that cannot be spent because they are either not spendable in form (such as inventory) or legally or contractually required to be maintained intact (such as endowments).
Restricted Fund Balance: this includes amounts that can be spent only for specific purposes stipulated by legal requirements imposed by other governments, external resource providers, or creditors. City Council- imposed restrictions do not create restricted fund balance unless the legal document that initially authorized the revenue (associated with that portion of fund balance) also included language that specified the limited use for which the authorized revenues were to be expended.
Committed Fund Balance: this includes amounts that can only be used for specific purposes pursuant to constraints imposed by formal action of the City Council. Those committed amounts cannot be used for any other purpose unless the City Council removes or changes the specified use by taking the same type of action (for example, resolution, ordinance, minutes action, etc.) that it employed to previously commit those amounts. If the Council action that limits the use of the funds was separate from the action that initially created the revenues that form the basis for the fund balance, then the resultant fund balance is considered to be committed, not restricted. The City considers a minute action to constitute a formal action of City Council for the purposes of establishing committed fund balance.
The City’s committed fund balance includes:
32 Page 48 of 173
City of Upland
Notes to Financial Statements
Year Ended June 30, 2021
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued
Economic Uncertainty Reserve:
Fund balance in the General Fund has been committed for economic uncertainties. Under the City’s Ordinance, this reserve can be used if an economic impact resulting in a decrease of a 5% or more in property or sales taxes occurs. The City Council, through resolution, has established the initial Economic Uncertainty Reserve at $10,300,000.
Emergency Disaster Contingency Reserve:
Fund balance in the General Fund has been committed for emergency contingencies. An emergency shall mean a natural disaster, catastrophic events, or any situation requiring the declaration of an emergency as defined by Upland Municipal Code Section 2.20. The City Council, through resolution, has established the initial Emergency Disaster Contingency Reserve at $1,000,000.
Assigned Fund Balance: this includes amounts that are intended to be used for specific purposes as indicated either by the City Council or by persons to whom the City Council has delegated the authority to assign amounts for specific purposes. The City Manager authorizes assigned amounts for specific purposes pursuant to the policy-making powers granted through an adopted City Council resolution.
Unassigned Fund Balance: this includes the remaining spendable amounts which are not included in one of the other classifications. The General Fund is the only fund that reports a positive unassigned fund balance. In other governmental funds it is not appropriate to report a positive unassigned fund balance amount. However, in governmental funds other than the General Fund, if expenditures incurred for specific purposes exceed the amounts that are restricted, committed, or assigned to those purposes, it may be necessary to report a negative unassigned fund balance in that fund.
Q) Fair Value Measurements
Certain assets and liabilities are required to be reported at fair value. The fair value framework provides a hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements), as follows:
Level 1 – Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets.
Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly and fair value is determined through the use of models or other valuation methodologies including:
Quoted prices for similar assets or liabilities in active markets; Quoted prices for identical or similar assets or liabilities in markets that are inactive; inputs other than quoted prices that are observable for the asset or liability; Inputs that are derived principally from or corroborated by observable market data by correlation or other means.
Level 3 – Inputs to the valuation methodology are unobservable and significant to the fair value measurement. These unobservable inputs reflect the City’s own assumptions about the inputs market participants would use in pricing the asset or liability (including assumptions about risk). These unobservable inputs are developed based on the best information available in the circumstances and may include the City’s own data.
33 Page 49 of 173
City of Upland
Notes to Financial Statements
Year Ended June 30, 2021
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued
R) Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures/expenses during the reporting period.
Actual results could differ from those estimates.
2) CASH AND INVESTMENTS
Cash and investments as of June 30, 2021 are classified in the accompanying financial statements as follows:
Cash and investments as of June 30, 2021 consist of the following:
Investments Authorized by the California Government Code and the City’s Investment Policy
The table below identifies the investment types that are authorized for the City by the California Government Code (or the City’s investment policy, where more restrictive). The table also identifies certain provisions of the California Government Code (or the City’s investment policy, where more restrictive) that address interest rate risk, credit risk, and concentration of credit risk. This table does not address investments of debt proceeds held by bond trustees that are governed by the provisions of debt agreements, rather than the general provisions of the California Government Code or the City’s investment policy.
Governmental Business-Type Fiduciary
Activities Activities Funds Total
Cash and Investments 75,735,828$ 47,761,097$ 9,745,091$ 133,242,016$ Restricted Cash and Investments 10,844,410 491,418 1,614,610 12,950,438 Cash and Investments with Fiscal Agent - - 23,005,499 23,005,499 Total Cash and Investments 86,580,238$ 48,252,515$ 34,365,200$ 169,197,953$ Government-wide
Statement of Net Position
Cash on Hand 12,800$
Deposits with Financial Institutions 12,315,234
Investments 156,869,919
Total Cash and Investments 169,197,953$
34 Page 50 of 173
City of Upland
Notes to Financial Statements
Year Ended June 30, 2021
2) CASH AND INVESTMENTS – Continued
Investments Authorized by Debt Agreements
Investments of debt proceeds held by bond trustees are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the City’s investment policy. Generally, the table below identifies the investment types that are authorized for investments held by bond trustees, subject to certain additional restrictions in the debt agreements. The table also identifies certain provisions of these debt agreements that address interest rate risk, credit risk, and concentration of credit risk.
Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. One of the ways the City manages its exposure to interest rate risk is by purchasing a combination of shorter term and longer-term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations.
Maximum Maximum
Maximum Percentage Investment in
Authorized Investment Type Maturity* of Portfolio* One Issuer* Municipal Securities 5 years None None
U.S. Treasury Obligations 5 years None None
U.S. Government Agency Issues 5 years 50% 50%
Commercial Paper 270 days 15% 10%
Bankers' Acceptances 180 days 40% 30%
Negotiable Certificates of Deposits 5 years 30% None, if collateralized Medium Term Notes/Corporate Bonds 5 years 30%None
Mutual Funds N/A 20%10%
Money Market Mutual Funds N/A 20%10%
Mortgage Pass-Through Securities 5 years 20%None
Local Agency Investment Fund (LAIF)N/A None None
Supranational Securities 5 years 30%10%
* Based on state law requirements or investment policy requirem ents, whichever is more restrictive.
Maximum
Authorized Investment Type Maturity
U.S. Treasury Obligations None
U.S. Government Agency Issues
(with certain exceptions) None
Banker's Acceptances 30-360 days
Commercial Paper 270 days
Money Market Funds N/A
State and Municipal Obligations None
Investment Agreements None
Repurchase Agreements None
Local Agency Investment Fund None
35 Page 51 of 173
City of Upland
Notes to Financial Statements
Year Ended June 30, 2021
2) CASH AND INVESTMENTS – Continued
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:
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 the California Government Code, the City’s Investment Policy, or debt agreements, and the actual rating as of year-end for each investment type.
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. As of June 30, 2021, the City’s investments with each of the following issuers exceed 5% of its total investments.
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 12 Months 13 to 36 37 to 60 More than
Investment Type Total Or Less Months Months 60 Months
US Treasury Obligations 1,471,590$ -$ -$ 1,471,590$ -$ U.S. Government Agency Securities 44,880,598 3,519,845 10,523,860 30,836,893 - Medium-term Notes 516,175 - 516,175 - - Certificates of Deposit 14,447,809 4,288,252 5,131,386 5,028,171 - Money Market Mutual Funds 3,029,326 3,029,326 - - - Local Agency Investment Fund (LAIF) 57,265,616 57,265,616 - - - Mutual Funds 12,253,290 12,253,290 - - - Held by Fiscal Agent
Money Market Mutual Funds 23,005,515 23,005,515 - - - Total Pooled Investments 156,869,919$ 103,361,844$ 16,171,421$ 37,336,654$ -$ Remaining Maturity (in Months)
Minimum
Investment Type Total Legal Rating Aaa Aaa3 - Aa1 A1, A2, A3 Not Rated US Treasury Obligations 1,471,590$ N/A 1,471,590$ -$ -$ -$ U.S. Government Agency Securities 44,880,598 N/A 44,880,598 - - - Medium-term Notes 516,175 A 516,175 - - - Certificates of Deposit 14,447,809 N/A - - - 14,447,809 Money Market Mutual Funds 3,029,326 A 3,029,326 - - - Local Agency Investment Fund (LAIF) 57,265,616 N/A - - - 57,265,616 Mutual Funds 12,253,290 N/A - - - 12,253,290 Held by Fiscal Agent
Money Market Mutual Funds 23,005,515 A 23,005,515 - - - Total Pooled Investments 156,869,919$ 72,903,204$ -$ -$ 83,966,715$ Reported
Issuer Investment Type Amount Maturity Interest (%)
FFCB Federal Agency Securities 13,637,179$ 2021-2025 .450 - 1.96 FHLB Federal Agency Securities 15,821,439 2025-2026 .200 - .820 FHLMC Federal Agency Securities 10,918,800 2024-2025 .375 - .600 36 Page 52 of 173
City of Upland
Notes to Financial Statements
Year Ended June 30, 2021
2) CASH AND INVESTMENTS – Continued
the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the City’s investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the following provision for deposits:
The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits.
Investment in State Investment Pool
The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by the California Government Code under the oversight of the Treasurer of the State of California. The fair value of the City’s investment in this pool is reported in the accompanying financial statements at amounts based upon the City’s pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis.
Based upon the fair value measurements described in Note 1, the City held the following investments as of June 30, 2021:
3) INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS
Due to/From - As of June 30, 2021, the General Fund has an outstanding receivable from non-major governmental funds of $670,700 to cover current year operating deficits. These deficits will be repaid with future revenues and when receivables are collected.
Interfund transfers for the year ended June 30, 2021 are as follows:
Investment Type Total Level 1 Level 2 Level 3
US Treasury Obligations 1,471,590$ 1,471,590$ -$ -$ U.S. Government Agency Securities 44,880,598 - 44,880,598 - Medium-term Notes 516,175 - 516,175 - Certificates of Deposit 14,447,809 - 14,447,809 - Total 61,316,172$ 1,471,590$ 59,844,582$ -$
Fair Value Hierarchy
Nonmajor Internal
Governmental Sewer Utility Service
TRANSFERS OUT Funds Fund Funds Total
General Fund 400,000$ -$ 1,264,509$ 1,664,509$ Housing - - 50,865 50,865 Solid Waste Fund - 265,000 - 265,000 Internal Service Funds 193,000 - - 193,000 593,000$ 265,000$ 1,315,374$ 2,173,374$
TRANSFERS IN
37 Page 53 of 173
City of Upland
Notes to Financial Statements
Year Ended June 30, 2021
3) INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS - Continued
The General Fund transferred $400,000 to the nonmajor governmental funds to fund projects. In addition, the General Fund transferred $1,264,509 to the Internal Service Funds for claims liabilities, vehicle replacements, and information systems. The Solid Waste Fund transferred $265,000 to the Sewer Fund to pay for landfill costs. The Internal Service Funds transferred $193,000 to the Nonmajor Governmental Funds for capital improvement projects.
4) CAPITAL ASSETS
Capital asset activity for the year ended June 30, 2021 is as follows:
Depreciation expense was charged to the following functions for governmental activities in the Statement of Activities:
Beginning Ending
Governmental Activities:Balance Increases Decreases Balance Capital Assets, Not Being Depreciated:
Land 5,053,610$ -$ -$ 5,053,610$ Rights of Way 103,432,811 - - 103,432,811 Street Trees 3,537,384 - - 3,537,384 Construction in Progress 5,125,052 4,016,878 (7,879,061) 1,262,869 Total Capital Assets, Not
Being Depreciated 117,148,857 4,016,878 (7,879,061) 113,286,674 Capital Assets Being Depreciated:
Building and improvements 42,730,602 922,421 - 43,653,023 Land Improvements 1,093,419 4,587,536 - 5,680,955 Park Improvements 12,224,414 205,737 (59,990) 12,370,161 Equipment 7,095,702 925,197 (6,200) 8,014,699 Vehicles 4,123,098 555,538 (439,375) 4,239,261 Infrastructure - Bridge 4,081,500 - - 4,081,500 Infrastructure - Street System 185,652,690 2,507,172 (815,003) 187,344,859 Infrastructure - Storm Drains 24,855,433 207,867 - 25,063,300 Total Capital Assets Being
Depreciated 281,856,858 9,911,468 (1,320,568) 290,447,758 Less Accumulated Depreciation:
Building and improvements (13,707,086) (836,327) - (14,543,413) Land Improvements (259,737) (27,972) - (287,709) Park Improvements (7,039,384) (388,642) 59,990 (7,368,036) Equipment (5,183,792) (600,768) 6,200 (5,778,360) Vehicles (2,404,047) (466,096) 439,375 (2,430,768) Infrastructure - Bridge - (81,630) (81,630) Infrastructure - Street System (77,733,154) (4,789,799) 815,003 (81,707,950) Infrastructure - Storm Drains (4,674,996) (248,554) - (4,923,550) Total Accumulated Depreciation (111,002,196) (7,439,788) 1,320,568 (117,121,416) Total Capital Assets Being
Depreciated, Net 170,854,662 2,471,680 - 173,326,342 Governmental Activities, Capital Assets, Net 288,003,519$ 6,488,558$ (7,879,061)$ 286,613,016$ 38 Page 54 of 173
City of Upland
Notes to Financial Statements
Year Ended June 30, 2021
4) CAPITAL ASSETS – Continued
Depreciation expense was charged to the following programs for business-type activities in the Statement of Activities:
General Government 732,848$
Public Safety 858,915
Engineering and Public Works 5,397,715
Community Services 450,310
7,439,788$
Beginning Ending
Business Type Activities:Balance Increases Decreases Balance Capital Assets, Not Being Depreciated:
Land 3,775,574$ -$ (820,713)$ 2,954,861$ Construction in Progress 1,291,357 4,228,917 (1,270,446) 4,249,828 Total Capital Assets, Not
Being Depreciated 5,066,931 4,228,917 (2,091,159) 7,204,689 Capital Assets Being Depreciated:
Pipelines 63,696,268 4,159,180 (896,842) 66,958,606 Reservoirs 37,930,167 5,604 - 37,935,771 Land Improvements 9,870 - - 9,870 Treatment Facilities 14,549,932 - - 14,549,932 Wells/pumps 5,340,879 - - 5,340,879 Sewer Manholes 2,784,068 - - 2,784,068 Machinery and Equipment 1,461,387 116,181 - 1,577,568 Vehicles 3,115,551 176,414 (456,814) 2,835,151 Total Capital Assets Being
Depreciated 128,888,122 4,457,379 (1,353,656) 131,991,845 Less Accumulated Depreciation:
Pipelines (18,391,233) (1,273,926) 643,670 (19,021,489) Reservoirs (13,763,442) (739,291) - (14,502,733) Land Improvements (1,974) (987) - (2,961) Treatment Facilities (6,836,650) (290,999) - (7,127,649) Wells/pumps (1,597,758) (106,464) - (1,704,222) Sewer Manholes (2,106,610) (42,232) - (2,148,842) Machinery and Equipment (1,093,385) (95,314) - (1,188,699) Vehicles (1,822,985) (392,433) 456,814 (1,758,604) Total Accumulated Depreciation (45,614,037) (2,941,646) 1,100,484 (47,455,199) Total Capital Assets Being
Depreciated, Net 83,274,085 1,515,733 (253,172) 84,536,646 Business Activities, Capital Assets, Net 88,341,016$ 5,744,650$ (2,344,331)$ 91,741,335$ Water Utility 2,160,657$
Sewer Utility 780,989
2,941,646$
39 Page 55 of 173
City of Upland
Notes to Financial Statements
Year Ended June 30, 2021
5) LONG-TERM LIABILITIES
Changes in long-term liabilities for governmental activities are as follows:
The liability for compensated absences, Net OPEB, and Net Pension are generally liquidated by the General Fund and internal service funds.
2017 Multifamily Housing Revenue Note (direct borrowing)
On July 26, 2017, the City entered into a Multifamily Housing Revenue Note agreement in the amount of $14,865,000 for the purpose of refunding the 2007 Housing Revenue Bonds. Proceeds from the loan were used to refund in full the 2007 Multifamily Housing Revenue Bonds. The 2007 Multifamily Housing Revenue Bonds were used to finance certain redevelopment projects in the project area of the former Community Redevelopment Agency and to advance refund previous Housing Revenue Bonds. Upon the issuance of the 2017 Housing Revenue Note, the 2007 Bonds are considered defeased and the liability has been removed from these financial statements. Principal and interest are payable in monthly payments due the first of each month, with the final payment scheduled for August 1, 2037. Payments are secured by a pledge of revenues generated by apartment rentals that have been assigned to the Housing Fund of the City pursuant to Assembly Bills 1x26 and 1484. The loan agreement contains provisions that in an event of default, outstanding amounts may become immediately due if the City is unable to make payment.
The following represents the future annual debt service requirements:
Beginning Ending Due in
Balance Additions Deletions Balance one year
Governmental Activities
Compensated Absences Payable 2,015,250$ 1,345,957$ 1,156,197$ 2,205,010$ 1,111,007$ Net OPEB Liability 9,683,091 1,529,426 - 11,212,517 - Net Pension Liability 100,667,068 5,729,243 - 106,396,311 - Claims Payable 10,504,707 3,068,055 3,825,313 9,747,449 2,949,359 Loans from Direct Borrowings:
2017 Multifamily Housing Rev. Note 13,372,270 - 557,098 12,815,172 579,825 Energy Efficiency Lease 2,467,501 - 151,846 2,315,655 164,463 CREBS Lease Agreement 4,472,265 - 30,634 4,441,631 55,603 Total Direct Borrowings 20,312,036 - 739,578 19,572,458 799,891 Total Government Activities 143,182,152$ 11,672,681$ 5,721,088$ 149,133,745$ 4,860,257$ Fiscal Year Ending
June 30, Principal Interest Total
2022 579,825$ 502,116$ 1,081,941$
2023 603,417 478,495 1,081,912
2024 626,750 455,162 1,081,912
2025 653,536 428,376 1,081,912
2026 680,162 401,750 1,081,912
2027-2031 3,838,685 1,570,875 5,409,560
2032-2036 4,687,218 722,342 5,409,560
2037-2038 1,145,579 26,986 1,172,565
Totals 12,815,172$ 4,586,102$ 17,401,274$
40 Page 56 of 173
City of Upland
Notes to Financial Statements
Year Ended June 30, 2021
5) LONG-TERM LIABILITIES – Continued
Energy Efficiency Lease Agreement (direct borrowing)
In August 2017, the City entered into a lease-purchase agreement for the acquisition and installation of certain energy conservation equipment including lighting and HVAC (non-solar) with an aggregate principal borrowing of $2,797,094. The proceeds were to be used to pay for energy efficiency and conservation improvements as specified in the agreement. The payments bear interest at 3.60% and are due and payable semi-annually on February 24th and August 24th each year, maturing on August 24, 2032. The General Fund will generally be responsible for making the debt service payments annually.
The annual debt service requirements for the lease agreement as of June 30, 2021 are as follows:
CREBS Lease Agreement (direct borrowing)
In August 2017, the City entered into a lease-purchase agreement for the acquisition, construction and installation of certain energy conservation equipment and improvements (solar) with an aggregate principal borrowing of $4,548,393. The proceeds were to be used to pay for certain issuance costs and energy efficiency and conservation improvements as specified in the agreement. The payments bear interest at 3.46% and are due and payable semi-annually, on February 24th and August 24th each year, maturing on August 24, 2037.
The General Fund will generally be responsible for making the debt service payments annually.
The annual debt service requirements for the lease agreement as of June 30, 2021 are as follows:
Fiscal Year Ending
June 30, Principal Interest Total
2022 164,463$ 97,859$ 262,322$
2023 171,137 90,646 261,783
2024 172,741 83,285 256,026
2025 176,862 75,825 252,687
2026 183,160 68,162 251,322
2027-2031 1,060,729 213,569 1,274,298
2032-2033 386,563 16,835 403,398
Totals 2,315,655$ 646,181$ 2,961,836$
Fiscal Year Ending
June 30, Principal Interest Total
2022 55,603$ 153,375$ 208,978$
2023 83,657 151,088 234,745
2024 98,346 148,070 246,416
2025 114,018 144,535 258,553
2026 130,727 140,448 271,175
2027-2031 944,597 619,005 1,563,602
2032-2036 2,118,975 382,908 2,501,883
2037-2038 895,708 31,400 927,108
Totals 4,441,631$ 1,770,829$ 6,212,460$
41 Page 57 of 173
City of Upland
Notes to Financial Statements
Year Ended June 30, 2021
5) LONG-TERM LIABILITIES – Continued
Changes in long-term liabilities for business-type activities are as follows:
2011 Lease Revenue Refunding Bonds (Water System)
In December 2011, the City issued $12,140,000 of 2011 Lease Revenue Refunding Bonds to provide for the advance refunding of the remaining portion of the City’s 2003 Lease Revenue Refunding Bonds and 2003 Lease Revenue Bonds. Interest rates on the bonds range from 2.0% to 4.0% and are payable semi-annually on April 1 and October 1 of each year until maturity on October 1, 2033. The City has purchased bond insurance to satisfy the reserve requirements for these Bonds.
The Bonds are secured by a pledge of net revenues of the water system and requires that the City set rates, fees, and charges for each fiscal year so as to yield system net revenues during each fiscal year equal to 125% of the annual debt service (including parity debt, if any).
All system net revenues are irrevocably pledged to the payment of the installment payments, which approximate $26 million annually. Principal and interest payments on the bonds for the 2020-21 fiscal year totaled $716,250.
The Bond indenture contains a provision that in an event of default, outstanding amounts may become immediately due if the City is unable to make payment. The future debt service requirements are as follows:
Beginning Ending Due in
Balance Additions Deletions Balance one year
Business-type Activities
Compensated absences payable 385,153$ 297,772$ 293,173$ 389,752$ 214,828$ Net OPEB Liability 2,247,774 188,542 - 2,436,316 - Net Pension Liability 13,460,201 539,973 - 14,000,174 - 2011 Revenue Refunding Bonds 7,200,000 - 380,000 6,820,000 395,000 Unamortized premium 446,494 - 34,347 412,147 - Loans from Direct Borrowings:
SAWCO Loan 1,376,000 - 344,000 1,032,000 344,000 SWRCB Loan - 666,627 - 666,627 - Total Direct Borrowings 1,376,000 666,627 344,000 1,698,627 344,000 Total Business-type Activities 25,115,622$ 1,692,914$ 1,051,520$ 25,757,016$ 953,828$ Fiscal Year Ending
June 30, Principal Interest Total
2022 395,000$ 320,750$ 715,750$
2023 410,000 304,650 714,650
2024 430,000 287,850 717,850
2025 440,000 268,250 708,250
2026 465,000 245,625 710,625
2027-2031 2,710,000 844,750 3,554,750
2032-2034 1,970,000 151,000 2,121,000
Totals 6,820,000$ 2,422,875$ 9,242,875$
42 Page 58 of 173
City of Upland
Notes to Financial Statements
Year Ended June 30, 2021
5) LONG-TERM LIABILITIES – Continued
SAWCO Loan Payable (direct borrowing)
In March 2019, the City entered into an agreement with the San Antonio Water Company (SAWCO) to purchase land valued at $1,720,000. The transaction was executed in September of 2019. SAWCO sold the land in exchange for a promissory note for $1,720,000. The loan is payable from the City in equal installments of $344,000 bearing an interest rate of 1.88%. The principal and interest payments are due on December 10, of each year with the final payment maturing on December 10, 2023.
The future debt service requirements are as follows:
SWRCB Loan Payable (direct borrowing)
The City has entered into a Construction Installment Sale Agreement with the California State Water Resources Control Board (State), to finance the replacement of a 7.5 MG reservoir (Project). The State has agreed to provide Project funds not to exceed $16.5 million. As of June 30, 2021, the City has drawn down $666,627 under the agreement.
Interest is accrued on the loan at 1.9% per annum, beginning with each drawdown. The City must pay interest annually during Project construction. Principal payments are not required until Project completion, with a final payment date of April 1, 2052. Upon completion of the Project, the City will be required to make annual payments of both principal and interest, based on a final payment schedule to be provided by the State at that time. Future debt service requirements will be disclosed for this loan upon Project completion.
The loan is secured by a lien on and pledge of net revenues in the City’s Water Fund. The City is required to establish and maintain a reserve fund prior to Project completion, in an amount equal to one year’s debt service on the loan.
6) OTHER POST EMPLOYMENT BENEFITS
General Information About the OPEB Plan
Plan Description – The City administers a single-employer defined benefit healthcare plan (“the Plan”) which provides medical insurance benefits to eligible retirees and their spouses in accordance with various labor agreements. After age 65, Medicare automatically becomes the primary provider of health coverage. The City’s defined benefit plan becomes the secondary provider. Eligible retirees will have no noticeable change in health benefits or plan administration; however, there is a reduction in the City’s cost of health coverage as the secondary provider. The City’s defined benefit plan administrator establishes the cost of secondary provider rates annually. There is no separate audited benefit plan report available. The City will pay a portion of the eligible retirees’ health coverage depending on their years of service.
Benefits Provided – Employees are eligible for retiree health benefits if they retire from the City on or after age 50 with at least 10 years of service, and are eligible for a PERS pension.
Fiscal Year Ending
June 30, Principal Interest Total
2022 344,000$ 25,869$ 369,869$
2023 344,000 12,934 356,934
2024 344,000 6,467 350,467
Totals 1,032,000$ 45,270$ 1,077,270$
43 Page 59 of 173
City of Upland
Notes to Financial Statements
Year Ended June 30, 2021
6) OTHER POST EMPLOYMENT BENEFITS – Continued
Employees Covered by Benefit Terms – As of the June 30, 2019 actuarial valuation, the following current and former employees were covered by the benefit terms under the Plan:
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 were $772,138. In addition, as the City’s budget allows, the City will make additional contributions to the OPEB Trust Account, administered by the Public Agency Retirement Systems (PARS).
Net OPEB Liability - The City’s net OPEB liability was measured as of June 30, 2019 and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation dated June 30, 2019, based on the following actuarial methods and assumptions:
The long-term expected rate of return on OPEB plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of OPEB plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighing the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. Best estimates of arithmetic real rates of return for each major asset class included in the OPEB plan’s target asset allocation as of June 30, 2021 are summarized in the following table:
City Service Retiree Spouse
10 - 14 years 72.57$ 45.00$
15 - 19 years 96.81 45.00
20 - 24 years 121.05 45.00
25 or more years 145.14 45.00
Monthly City Contribution
Retirees or spouses of retirees currently receiving benefits 229 Inactive plan members entitled to but not yet receiving benefits12 Active employees 198
Total 439
Valuation Date June 30, 2019
Actuarial Cost Method Entry Age Actuarial Cost
Mortality 2017 CalPERS Active Mortality
Age at Retirement Varies, 55 to 62
Health Care Trend Rate 5.40% initial, 4.0% ultimate
Inflation Rate 2.50%
Salary Changes 3.00%
Discount Rate 2.23%
Asset Return 5.91%
Target Long-Term
Asset Class Allocation Rate of Return
Fixed Income 45% 1.75%
Equities 50% 5.00%
Cash 5% 0.00%
Total 100.00%
44 Page 60 of 173
City of Upland
Notes to Financial Statements
Year Ended June 30, 2021
6) OTHER POST EMPLOYMENT BENEFITS – Continued
Discount Rate – The discount rate of 2.23% is a blended rate between the rate of return of 5.91% and 2.21%, the resulting rate using the Bond Buyer 20-Bond GO index.
Changes in the Net OPEB Liability
Sensitivity of the Net OPEB Liability to changes in the Discount Rate - The following presents the net OPEB liability of the City if it were calculated using a discount rate that is 1-percentage-point lower or 1- percentage-point higher than the current 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 District, as well as what the District’s Net OPEB would be if it were calculated using a healthcare cost trend rate that is 1-percentage-point lower or 1-percentage-point higher than the current healthcare cost trend rate:
OPEB Plan Fiduciary Net Position
PARS issues a publicly available financial report that may be obtained from the Public Agency Retirement Services, 4350 Von Karman Ave., Newport Beach, CA 92660.
Total OPEB Plan Fiduciary Net OPEB
Liability (TOL) Net Position Liability/(Asset)
Balance at June 30, 2020 (2019 Measurement Date) 13,050,100$ 1,119,235$ 11,930,865$ Changes in the year:
Service cost 166,888 - 166,888 Interest on the total OPEB liability 448,931 - 448,931 Employer contributions - 853,875 (853,875) Actual investment income - 65,978 (65,978) Differences between expected and actual experience - - - Changes of assumptions 2,001,839 - 2,001,839 Administrative Expense - (5,696) 5,696 Benefit payments, including refunds (853,875) (853,875) - Investment Experience - (14,467) 14,467 Net changes 1,763,783 45,815 1,717,968 Balance at June 30, 2021 (2020 Measurement Date) 14,813,883$ 1,165,050$ 13,648,833$ Increase (Decrease)
1% Decrease Discount Rate 1% Increase
(1.23%) (2.23%) (3.23%)
Net OPEB liability (asset) 15,563,875$ 13,648,833$ 12,047,246$ Current
Healthcare Cost
1% Decrease Trend Rate 1% Increase
Net OPEB liability (asset) 12,873,585$ 13,648,833$ 14,567,907$ 45 Page 61 of 173
City of Upland
Notes to Financial Statements
Year Ended June 30, 2021
6) OTHER POST EMPLOYMENT 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 $738,532. The City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:
The $997,138 reported as deferred outflows of resources related to contributions subsequent to the June 30, 2020 measurement date will be recognized as a reduction of the net OPEB liability during the fiscal year ended June 30, 2022. Other amounts reported as deferred outflows of resources related to OPEB will be recognized as expense as follows:
7) TAX ABATEMENT
The City enters into various tax abatement agreements for the purpose of attracting or retaining businesses within the City’s jurisdiction. In June 2007, a fifteen-year agreement was entered into with a commercial concrete and asphalt company. As an incentive to continue to operate within the City, the City will pay the company the greater of 60% of all sales tax revenue generated in any fiscal year or $400,000. The amount of sales tax abated to that company for the fiscal year ended June 30, 2021 was $562,599.
8) 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 Successor Agency to UCRA, 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, 2021 is $59,055,000.
Deferred Deferred
Outflows Inflows
OPEB Contributions Subsequent to the Measurement Date 997,138$ -$ Changes of Assumptions 2,135,872 -
Net differences between expected
and actual experience - 1,157,813
Net differences between projected and actual
earnings on plan investments 16,080 -
Total 3,149,090$ 1,157,813$
Year Ending
June 30,
2022 182,994$
2023 179,588
2024 177,901
2025 274,987
2026 178,669
Thereafter -
46 Page 62 of 173
City of Upland
Notes to Financial Statements
Year Ended June 30, 2021
9) CLAIMS AND JUDGEMENTS
The City is exposed to various risks of loss related to its operation, including losses associated with errors and omissions, injuries to employees and members of the public. The City’s Self-funded Insurance Internal Service Fund is used to account for and finance its uninsured risks of loss. The City purchases coverage from Municipal Insurance Cooperative (MIC) for general liability coverage, with a limit up to $10M. MIC provides coverage in excess of the City’s self-insured retention of $400,000. Excess general liability coverage is also obtained through excess carriers up to $20M in limits. Starstone National Insurance provides $10M excess and Markel Insurance Company provides the second layer of excess coverage.
The City is self-insured for workers’ compensation through its membership with the Municipal Insurance Cooperative Joint Powers Authority, covering occupation injuries and employer’s liability insurance. Through its participation in this program, the City has retained a limit of $1M per occurrence purchased through Arch Insurance Group covering up to statutory limits under California Workers’ Compensation law. Additionally, the City purchases a buffer layer policy to reduce the $1M retention to $500,000 covering occupation injuries and employer’s liability insurance provided by Great American E&S Insurance Company.
In the past three years, no claims for general liability or workers’ compensation have exceeded the City’s purchased insurance coverage.
The claims and judgments liability reported in the Self-funded Insurance Internal Service Fund is based on the requirements of Governmental Accounting Standards Board Statement No. 10, which requires that a liability for claims and judgments be reported if information prior to the issuance of the financial statements indicates that it is probable that a liability has been incurred at the date of the financial statements and the amount of loss can be reasonably estimated. As of June 30, 2021, claims and judgments payable, including estimated claims for incurred but not reported claims, amounted to $9,747,449.
Changes in the claims and judgments payable amounts in fiscal years ended June 30, 2020 and 2021 for the Self-funded Insurance Fund are as follows:
10) PENSION PLANS
General Information about the Pension Plans - Miscellaneous
Plan Descriptions: All qualified permanent and probationary employees are eligible to participate in the City’s separate Miscellaneous Plan, an agent multiple-employer defined benefit pension plan administered by the California Public Employees’ Retirement System (CalPERS), which acts as a common investment and administrative agent for its participating member employers. Benefit provisions under the plan are established by State statute and Local Government resolution. CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website: www.calpers.ca.gov
Claims and
Year Ended Beginning Changes in Claim End
June 30, of Year Estimates Payments of Year
2021 10,504,707$ 3,068,055$ 3,825,313$ 9,747,449$
2020 10,338,208 4,186,959 4,020,460 10,504,707 47 Page 63 of 173
City of Upland
Notes to Financial Statements
Year Ended June 30, 2021
10) PENSION PLANS – Continued
Benefits Provided: The Plan is an agent multiple-employer defined benefit pension plan administered by the California Public Employees’ Retirement System (CalPERS). A full description of the pension plan regarding number of employees covered, benefit provisions, assumptions (for funding, but not accounting purposes), and membership information are listed in the plan’s June 30, 2019 Annual Actuarial Valuation Report (funding valuation). Details of the benefits provided can be obtained in Appendix B of the actuarial valuation report. This report and CalPERS’ audited financial statements are publicly available reports that can be obtained at CalPERS’ website.
The Plans’ provisions that are in effect at June 30, 2021, are summarized as follows:
Employees Covered: At June 30, 2021, the following number of employees were covered by the benefit terms for the Plan:
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. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. Employer contribution rates may change if plan contracts are amended. It is the responsibility of the employer to make necessary accounting adjustments to reflect the impact due to any Employer-Paid Member Contributions or situations where members are paying a portion of the employer contribution.
Prior to On or after
Hire date January 1, 2013 January 1, 2013
Benefit formula 2.5% @ 55 2% @ 62
Benefit vesting schedule 5 years service 5 years service Benefit payments monthly for life monthly for life
Retirement age 50-55 52
Monthly benefits, as a % of eligible compensation (1)(1) Required employee contribution rates 8%7.25%
Required employer contribution rates 11.567% + $3,113,125 7.25% (1) - Depending on years of service
Miscellaneous
Miscellaneous
Inactive employees or beneficiaries
currently receiving benfits 414
Inactive employees entitled to but not yet
receiving benefits 263
Active employees 144
48 Page 64 of 173
City of Upland
Notes to Financial Statements
Year Ended June 30, 2021
10) PENSION PLANS – Continued
Net Pension Liability
The City’s net pension liability for the Plan is measured as the total pension liability, less the pension plan’s fiduciary net position. The net pension liability of the Plans 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 shown below.
Actuarial Assumptions: The total pension liabilities in the June 30, 2019 actuarial valuations were determined using the following actuarial assumptions:
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.
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 best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.
In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Using historical returns of all the funds’ asset classes, expected compound returns were calculated over the short-term (first 10 years) and the long-term (11-60 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:
Miscellaneous
Valuation date June 30, 2019
Measurement date June 30, 2020
Actuarial cost method entry-age normal
Actuarial assumptions:
Discount rate 7.15%
Inflation 2.75%
Projected salary increase (1)
Investment rate of return 7.15%
Mortality (2)
(1) Depending on age, service and type of employment
(2) Derived using CalPERS’ Membership Data for all Funds. 49 Page 65 of 173
City of Upland
Notes to Financial Statements
Year Ended June 30, 2021
10) PENSION PLANS – 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.
Changes in Net Pension Liability
The changes in the Net Pension Liability for the Miscellaneous Plan are as follows:
New Strategic Real Return Real Return
Asset Class Allocation Years 1 - 10 (1) Years 11+ (2)
Global Equity 50% 4.80% 5.98%
Global Fixed Income 28% 1.00% 2.62%
Inflation Assets - 0.77% 1.81%
Private Equity 8% 6.30% 7.23%
Real Assets 13% 3.75% 4.93%
Liquidity 1% - -0.92%
(1) An expected inflation of 2.0% used for this period. (2) An expected inflation of 2.92% used for this period.
Pension Plan Plan Fiduciary Net Pension
Liability Net Position Liability/(Asset)
Balance at June 30, 2019 134,227,077$ 93,733,090$ 40,493,987$ Changes in the year:
Service cost 1,461,755 - 1,461,755 Interest on the total pension liability 9,399,565 - 9,399,565 Changes of benefit terms - - - Differences between expected and actual experience 532,528 - 532,528 Changes in assumptions - - - Net Plan to Plan Resource Movement - - - Contributions from the employer - 4,697,971 (4,697,971) Contributions from employees - 670,433 (670,433) Net investment income - 4,621,628 (4,621,628) Benefit payments, including refunds (8,056,083) (8,056,083) - Administrative/other expense - (132,141) 132,141 Net changes 3,337,765 1,801,808 1,535,957 Balance at June 30, 2020 137,564,842$ 95,534,898$ 42,029,944$ Increase (Decrease)
50 Page 66 of 173
City of Upland
Notes to Financial Statements
Year Ended June 30, 2021
10) PENSION PLANS – Continued
Sensitivity of the Net Pension Liability to Changes in the Discount Rate: The following presents the net pension liability of the Plan as of the measurement date, calculated using the discount rate of 7.15 percent, as well as what the net pension liability would be if it were calculated using a discount rate that is 1 percentage- point lower (6.15 percent) or 1 percentage-point higher (8.15 percent) than the current rate:
Pension Plan Fiduciary Net Position: Detailed information about the pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports.
Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions For the year ended June 30, 2021, the City recognized pension expense of $5,296,881 for the Miscellaneous Plan. At June 30, 2021, the City reported deferred outflows and deferred inflows for the Miscellaneous Plan from the following sources:
$4,088,720 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2022. Other amounts reported as deferred outflows and deferred inflows related to pensions will be recognized as pension expense as follows:
Miscellaneous
1% Decrease 6.15%
Net Pension Liability 59,187,085$
Current Discount Rate 7.15%
Net Pension Liability 42,029,944$
1% Increase 8.15%
Net Pension Liability 27,843,849$
Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to measurement date 4,088,720$ -$ Differences between actual and expected experience 252,250 - Changes in assumptions - -
Net differences between projected and actual
earnings on plan investments 653,688 -
Total 4,994,658$ -$
Miscellaneous
Year Ending
June 30,
2022 (201,947)$
2023 234,165
2024 481,428
2025 392,292
2026 -
Thereafter -
51 Page 67 of 173
City of Upland
Notes to Financial Statements
Year Ended June 30, 2021
10) PENSION PLANS – Continued
General Information about the Pension Plans – Safety
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) administered by the California Public Employees’ Retirement System (CalPERS.) The Plan consists of individual rate plans (benefit tiers) within a safety risk pool (police and fire). Plan assets may be used to pay benefits for any employer rate plan of the safety pool. Accordingly, rate plans within the safety pool are not separate plans under GASB Statement No. 68. Individual employers may sponsor more than one rate plan in the safety pool. The City sponsors five rate plans. 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: www.calpers.ca.gov
Benefits Provided – The Plan is a cost-sharing multiple-employer defined benefit pension plan administered by the California Public Employees’ Retirement System (CalPERS). A full description of the pension plan benefit provisions, assumptions for funding purposes but not accounting purposes, and membership information is listed in the June 30, 2019 Annual Actuarial Valuation Report. Details of the benefits provided can be obtained in Appendix B of the June 30, 2019 actuarial valuation report. This report is a publicly available valuation report that can be obtained at CalPERS’ website under Forms and Publications.
The rate plan provisions and benefits in effect at June 30, 2021, are summarized as follows:
Contributions – Section 20814(c) of the California Public Employees’ Retirement Law 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. Funding contributions for the Plans are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees.
Beginning in fiscal year 2016, CalPERS collects employer contributions for the Plan as a percentage of payroll for the normal cost portion as noted in the rates above and as a dollar amount for contributions toward the unfunded liability. The dollar amounts are billed on a monthly basis. The City’s required contribution for the unfunded liability was $5,941,902 in fiscal year 2021. The City’s contributions to the Plan for the year ended June 30, 2021 were $7,041,790.
Safety
Safety PEPRA
Prior to On or after
Hire date January 1, 2013 January 1, 2013
Benefit formula 3% @ 55 2.7% @ 55
Benefit vesting schedule 5 years service 5 years service Benefit payments monthly for life monthly for life
Retirement age 50 - 55 52
Monthly benefits, as a % of eligible compensation (1) (1) Required employee contribution rates 9% 12.25%
Required employer contribution rates 19.141% + $5,897,819 13.750% + $44,083 (1) ‐ Depending on years of service
52 Page 68 of 173
City of Upland
Notes to Financial Statements
Year Ended June 30, 2021
10) PENSION PLANS – Continued
Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions
As of June 30, 2020, the City reported a liability of $78,366,541 for its proportionate share of the net pension liability. The City’s net pension liability for the Plan is measured as the proportionate share of the net pension liability. The net pension liability of the Plan is measured as of June 30, 2020, and the total pension liability for the Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2019 rolled forward to June 30, 2020 using standard update procedures. The City’s proportion of the net pension liability was based on a projection of the City’s long-term share of contributions to the pension plan relative to the projected contributions of all participating employers, actuarially determined.
The City’s proportionate share of the Plan’s net pension liability as of June 30, 2019 and 2020 was as follows:
For the year ended June 30, 2021, the City recognized pension expense of $4,103,710. At June 30, 2021, the City reported deferred outflows of resources and deferred inflows of resources related to the Safety pension plan from the following sources:
The $7,041,790 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2022.
Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:
Proportion - June 30, 2019 0.71858%
Proportion - June 30, 2020 0.72025%
Change - Increase (Decrease)0.00167%
Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to measurement date 7,041,790$ -$ Differences between actual and expected experience 6,076,928 - Changes in assumptions - 261,040 Change in employer's proportion and differences 25,696 - Differences between the employer's contributions and
the employer's proportionate share of contributions - 1,472,227 Net differences between projected and actual
earnings on plan investments 1,703,235 -
Total 14,847,649$ 1,733,267$
Year Ending
June 30,
2022 1,209,390$
2023 2,298,888
2024 1,710,898
2025 853,416
2026 -
Thereafter -
53 Page 69 of 173
City of Upland
Notes to Financial Statements
Year Ended June 30, 2021
10) PENSION PLANS – Continued
Actuarial Assumptions – The total pension liabilities in the June 30, 2019 actuarial valuations were determined using the following actuarial assumptions:
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.
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 best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Using historical returns of all the funds’ asset classes, expected compound returns were calculated over the short-term (first 10 years) and the long-term (11-60 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:
Valuation date June 30, 2019
Measurement date June 30, 2020
Actuarial cost method entry-age normal
Actuarial assumptions:
Discount rate 7.15%
Inflation 2.50%
Payroll growth 3.00%
Projected salary increase (1)
Investment rate of return 7.15%
Mortality (2)
(1) Depends on entry age, service and type of employment (2) Derived using CalPERS’ Membership Data for all Funds.
New Strategic Real Return Real Return
Asset Class Allocation Years 1 - 10 (1) Years 11+ (2)
Global Equity 50% 4.80% 5.98%
Fixed Income 28% 1.00% 2.62%
Inflation Assets - 0.77% 1.81%
Private Equity 8% 6.30% 7.23%
Real Assets 13% 3.75% 4.93%
Liquidity 1% - -0.92%
(1) An expected inflation of 2.0% used for this period. (2) An expected inflation of 2.92% used for this period. 54 Page 70 of 173
City of Upland
Notes to Financial Statements
Year Ended June 30, 2021
10) PENSION PLANS – 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.
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 for the Plan, calculated using the discount rate for the Plan, as well as what the City’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower or 1-percentage point higher than the current rate:
Pension Plan Fiduciary Net Position – Detailed information about the Plan’s fiduciary net position is available in the separately issued CalPERS financial reports.
Payable to the Pension Plan - At June 30, 2021, the City reported no payables to the pension plan, for outstanding contributions required for the year ended June 30, 2021.
The total pension expense for the miscellaneous and safety plan was $9,400,591.
11) EQUITY INTERESTS
The City has ownership in the San Antonio and West End water companies based upon the number of stock shares owned. To protect the water rights for the citizens of Upland, the City’s water utility has followed the practice of purchasing shares of stock in the water companies as they become available. The City’s primary motivation for owning shares in the water companies is to secure rights to well water pumped by the two companies. One Upland City Council member is also on the Board of San Antonio Water Company. As development takes place within the City, the City requires developers to contribute 1.5 shares for each acre developed. The City’s equity interests in the water companies has been recorded using the equity method of accounting and is reflected as an equity interest in the accompanying financial statements.
On February 19, 1980, the Water Facilities Authority was created under a joint exercise of powers agreement for the acquisition and construction of facilities to supply water to the inhabitants within the boundaries of its members. The Authority’s Board of Directors consists of one member appointed from each participating agency.
The City’s investment in the Authority has been recorded using the equity method of accounting and is reflected as an equity interest in the accompanying financial statements.
1% Decrease 6.15%
Net Pension Liability 108,758,508$
Current Discount Rate 7.15%
Net Pension Liability 78,366,541$
1% Increase 8.15%
Net Pension Liability 53,427,057$
55 Page 71 of 173
City of Upland
Notes to Financial Statements
Year Ended June 30, 2021
11) EQUITY INTERESTS - Continued
Separate financial statements may be obtained for the San Antonio Water Company and Liquidation Trust at 139 North Euclid Avenue, Upland, California; for the West End Consolidated Water Company at 460 N. Euclid Avenue, Upland, California; and for the Water Facilities Authority at 1775 North Benson Avenue, Upland, California. The following schedule summarizes the City’s investment in joint ventures at June 30, 2021 and the gain (loss) on the investment for the year then ended:
12) SUCCESSOR AGENCY ACTIVITIES
Changes in long-term liabilities for the Successor Agency are as follows:
2013 Tax Allocation Refunding Bonds
On May 9, 2013, the Successor Agency of the former Upland Community Redevelopment Agency issued tax allocation refunding bonds in the amount of $22,090,000 to refund the outstanding aggregate principal amount of the 1998 and 2003 Tax Allocation Bonds. Interest rates on the bonds range from 2.00% to 5.00% and are payable semi-annually on March 1 and September 1 of each year until maturity. The interest and principal of the bonds are payable from pledged tax increment revenues of the Merged Project Area. Term Bonds maturing September 1, 2018 and September 1, 2023 are subject to mandatory sinking fund redemption, in part by lot, on September 1, 2015 and September 1, 2019, respectively, and on each September 1 thereafter at a price equal to the principal amount thereof plus accrued interest. There are certain limitations regarding the issuance of parity debt as further described in the official statement.
The future debt service requirements for the bonds are as follows:
City's Share of
Percentage Total Joint City's Equity Joint Venture Net
Water Company Ownership Venture Equity Interest Income (Loss) San Antonio Water Company 70.67% 28,786,047$ 20,342,620$ 1,202,451$ West End Water Company 91.18% 2,524,257 2,301,617 107,694 Water Facilities Authority 23% 28,836,271 6,632,343 598,683 Total 29,276,580$ 1,908,828$
Beginning Ending Due in
Balance Additions Retirements Balance one year
Fiduciary Fund Long-term Debt
2013 Tax Allocation Bonds 9,005,000$ -$ 2,115,000$ 6,890,000$ 2,200,000$ 2016 Tax Allocation Bonds 11,760,000 - 175,000 11,585,000 185,000 Unamortized Premium 2,157,765 - 291,698 1,866,067 - Total Fiduciary Fund Debt 22,922,765$ -$ 2,581,698$ 20,341,067$ 2,385,000$ Fiscal Year Ending
June 30, Principal Interest Total
2022 2,200,000$ 278,500$ 2,478,500$
2023 2,290,000 177,250 2,467,250
2024 2,400,000 60,000 2,460,000
Totals 6,890,000$ 515,750$ 7,405,750$
56 Page 72 of 173
City of Upland
Notes to Financial Statements
Year Ended June 30, 2021
12) SUCCESSOR AGENCY ACTIVITIES – Continued
2016 Tax Allocation Refunding Bonds
On September 14, 2016, the Successor Agency of the former Redevelopment Agency issued tax allocation refunding bonds in the amount of $12,275,000 to refund the outstanding aggregate principal amount of the 2006 Tax Allocation Bonds. Interest rates on the 2016 Bonds range from 2.00% to 5.00%, and payments are due semi-annually on March 1 and September 1 of each year until maturity. The interest and principal of the bonds are payable from pledged tax increment revenues of the Merged Project Area. Term Bonds maturing September 1, 2036 are subject to mandatory sinking fund redemption, in part by lot, on September 1, 2029, and on each September 1 thereafter at a price equal to the principal amount thereof, plus accrued interest.
The future debt service requirements for the bonds are as follows:
13) CONTINGENT RECEIVABLE
Measure I is the half-cent sales tax collected throughout San Bernardino County for transportation improvements. San Bernardino County Transportation Authority (SBCTA), the regional transportation authority, administers Measure I revenue and is responsible for determining which projects receive Measure I funding, and ensuring that transportation projects are implemented. In June of 2012, the City and SBCTA entered into a Jurisdiction Master Agreement. Per the terms of the Agreement, SBCTA will reimburse the City for the public share of eligible project expenditures with Measure I funds in an amount determined by SBCTA. SBCTA is to annually adopt a funding allocation and project list and will notify the City of the Measure I allocation and the list of eligible projects for reimbursement. The City will prepare and submit to SBCTA invoices for reimbursement of those eligible expenditures.
Revenues are recognized by the City when both eligible expenditures have been incurred and annual funding allocations are approved by SBCTA. At June 30, 2021, prior expenditures related to the Foothill Boulevard Widening Project, which total over $3.5 million are included in the Measure I projects eligible for reimbursement.
However, due to limited program tax revenue accruals from 2010, only $2,590,094 of project costs have been approved for disbursements by SBCTA and recorded as revenue as of June 30, 2021. Of this amount, $1,807,920 was received in prior years and $213,810 remained outstanding as of June 30, 2021. Future reimbursements are expected to coincide with annual tax revenue generated under the Measure I program for arterial transportation projects.
Fiscal Year Ending
June 30, Principal Interest Total
2022 185,000 466,188 651,188
2023 190,000 458,687 648,687
2024 205,000 450,787 655,787
2025 2,395,000 386,813 2,781,813
2026 2,530,000 263,688 2,793,688
2027-2031 3,180,000 607,319 3,787,319
2032-2036 2,380,000 239,388 2,619,388
2037 520,000 7,150 527,150
Totals 11,585,000$ 2,880,020$ 14,465,020$
57 Page 73 of 173
City of Upland
Notes to Financial Statements
Year Ended June 30, 2021
14) FUND BALANCE
The City’s governmental fund balances at June 30, 2021, are presented below:
The deficit unassigned fund balance in the Non-major governmental funds of $684,266 is made up of CDBG $448,161, Other Grants $46,053, and Energy Efficiency Improvements $190,052. These deficits will be repaid when receivables are collected and from future revenues.
The Self-funded Internal Service Fund has a deficit of $8,247,484 as a result of claims liabilities exceeding assets.
15) COMMITMENTS AND CONTINGENCIES
The City has been named as a defendant in certain other claims and litigation matters. In the opinion of City management, the outcome of such litigation is not expected to result in a material adverse effect to the financial condition of the City beyond that accrued in the City’s Self-funded Insurance Fund.
The City has received state and federal funds for specific purposes that are subject to review and audit by the grantor agencies. Although such audits could generate expenditure disallowances under the terms of the grants, it is believed that any required reimbursements will not be material.
Total Non-major Total
General Housing ARPA Governmental Governmental
Fund Fund Fund Funds Funds
Nonspendable:
Inventory and Prepaid Items 161,450$ -$ -$ -$ 161,450$ Long-term Notes Receivable 17,200 - - - 17,200 Restricted:
Disability Access 95,303 - - - 95,303 Section 115 Pension Trust 10,638,680 - - - 10,638,680 Low and Moderate Income Housing - 10,315,110 - 6,823,167 17,138,277 Public Safety - - 4,741 1,933,702 1,938,443 Street Maintenance - - - 14,963,509 14,963,509 Air Pollution Reduction Measures - - - 185,241 185,241 Downtown Parking & Business Improvement - - - 193,144 193,144 Capital Improvements - - - 2,168,857 2,168,857 Park Acquisition and Development - - - 9,971,232 9,971,232 Storm Drain - - - 4,881,702 4,881,702 Street and Traffic Safety - - - 1,582,059 1,582,059 Street and Alley Repair - - - 700,710 700,710 Committed to:
Economic Uncertainty Reserve 10,300,000 - - - 10,300,000 Emergency Contingency 1,000,000 - - - 1,000,000 General Plan Update 502,000 - - - 502,000 Memorial Park Improvements 140,000 - - - 140,000 Pensions 2,214,000 - - - 2,214,000 OPEB 277,000 - - - 277,000 Legal/Labor Negotiations 450,000 - - - 450,000 Continuinng Appropriations 254,875 - - - 254,875 Assigned:
General Capital Improvements - - - 1,486,901 1,486,901 Building Maintenance and Repairs 1,480,000 - - - 1,480,000 Infrastructure Improvements 3,011,000 - - - 3,011,000 Unassigned 249,245 - - (684,266) (435,021) Total Fund Balance 30,790,753$ 10,315,110$ 4,741$ 44,205,958$ 85,316,562$ 58 Page 74 of 173
City of Upland
Notes to Financial Statements
Year Ended June 30, 2021
15) COMMITMENTS AND CONTINGENCIES
The City had approximately $12,431,521 in outstanding construction contract obligations as of June 30, 2021.
State Water Resource Control Board Loans
On November 25, 2019, the City entered into a construction financing agreement (State Revolving Fund (SRF) loan) with the California State Water Resources Control Board for the construction of a replacement 7.5 MG water reservoir (project). Pursuant to the financing agreement, the State loan will finance planning, design, and construction of the reservoir in an amount not to exceed $16.5 million with an interest rate of 1.9% for a 30-year term. Per the financing agreement, the loan will be repaid from the pledge of net water revenues of the City’s Water System and its Water Enterprise Fund. After construction is completed, the project loan schedule will be adjusted to reflect the actual project expenditures.
The project was awarded on November 23, 2020 with construction to commence in the beginning of 2021. The estimated construction period is 12 to 18 months. The City will make progress payment requests to the State for reimbursement of payments made by the City for eligible project expenses. The first reimbursement for eligible costs was received from the State on September 23, 2020.
16) IMPLEMENTATION OF GASB PRONOUNCEMENTS
The Governmental Accounting Standards Board has issued the following Statements, which may affect the City’s financial reporting requirements in the future:
GASB 87 - Leases: This Statement requires recognition of certain lease assets and liabilities for leases that previously were classified as operating leases and recognized as inflows of resources or outflows of resources based on the payment provisions of the contract. It establishes a single model for lease accounting based on the foundational principle that leases are financings of the right to use an underlying asset. The requirements of this Statement are effective for reporting periods beginning after December 15, 2020.
GASB 90 - Majority Equity Interests: The primary objectives of this Statement are to improve the consistency and comparability of reporting a government's majority equity interest in a legally separate organization and to improve the relevance of financial statement information for certain component units. The requirements of this Statement are effective for reporting periods beginning after December 15, 2019.
GASB 91 - Conduit Debt Obligations: The primary objectives of this Statement are to provide a single method of reporting conduit debt obligations by issuers and eliminate diversity in practice. The requirements of this Statement are effective for reporting periods beginning after December 15, 2021.
17) SUBSEQUENT EVENTS
On December 13, 2021, City Council approved two resolutions authorizing additional discretionary payments to CalPERS. As a result, the City remitted $15,255,448 to reduce the City’s unfunded accrued liability (UAL) pertaining to its Miscellaneous Plan with CalPERS on December 21, 2021. This payment’s purpose is to eliminate the Water, Sewer and Solid Waste Funds’ current share of the Miscellaneous Plan’s UAL. The City authorized PARS to distribute a $10,000,000 payment from the City’s Section 115 Pension Trust held by PARS directly to CalPERS in order to reduce the City’s UAL pertaining to its Safety Plan. That wire transfer took place on December 23, 2021.
18) RESTATEMENT OF FIDUCIARY NET POSITION
The restatement of net position in the Custodial Funds of $20,147,044 is the result of the implementation of GASB 84, Fiduciary Activities.
59 Page 75 of 173
City of Upland
Notes to Financial Statements
Year Ended June 30, 2021
19) DISCRETELY PRESENTED COMPONENT UNITS
West End Consolidated Water Company
Capital assets activity for the West End Consolidated Water Company for the year ended December 31, 2020, was as follows:
San Antonio Water Company
Capital assets activity for the San Antonio Water Company for the year ended December 31, 2020, was as follows:
Beginning Ending
Balance Increases Decreases Balance
Capital Assets, Not Being Depreciated:
Land 8,574$ -$ -$ 8,574$ Water Rights 487,296 - - 487,296 Total Capital Assets, Not Depreciated 495,870 - - 495,870 Capital Assets Being Depreciated:
Facility and Fencing Improvements 22,810 - - 22,810 Boosters 26,374 - - 26,374 Wells 1,280,137 - - 1,280,137 Reservoirs 59,528 - - 59,528 Pipelines 259,772 - - 259,772 Pumps and Equipment 269,045 - - 269,045 Total Capital Assets Being Depreciated 1,917,666 - - 1,917,666 Less Accumulated Depreciation:903,372 37,640 - 941,012 Net Capital Assets Being Depreciated 1,014,294 (37,640) - 976,654 West End, Capital Assets, Net 1,510,164$ (37,640)$ -$ 1,472,524$ Beginning Ending
Balance Increases Decreases Balance
Capital Assets, Not Being Depreciated:
Land and Water Rights 920,161$ -$ -$ 920,161$ Construction in Progress 2,212,636 966,588 2,045,985 1,133,239 Total Capital Assets, Not Depreciated 3,132,797 966,588 2,045,985 2,053,400 Capital Assets Being Depreciated:
Tunnels and Forebay 1,587,111 - - 1,587,111 Wells, Shafts, Building 4,879,915 11,721 4,609 4,887,027 Pipelines 15,921,611 540,618 27,101 16,435,128 Boosters 2,448,690 - - 2,448,690 Reservoirs 1,712,022 1,369,765 - 3,081,787 All Other 4,315,659 214,437 17,843 4,512,253 Total Capital Assets Being Depreciated 30,865,008 2,136,541 49,553 32,951,996 Less Accumulated Depreciation:13,267,225 936,732 (49,553) 14,154,404 Net Capital Assets Being Depreciated 17,597,783 1,199,809 - 18,797,592 San Antonio, Capital Assets, Net 20,730,580$ 2,166,397$ 2,045,985$ 20,850,992$ 60 Page 76 of 173
REQUIRED SUPPLEMENTARY INFORMATION