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HomeMy WebLinkAbout21-20-01 Agenda PacketIMPORTANT COVID-19 NOTICE In an effort to protect public health and prevent the spread of COVID-19 and to enable appropriate social distancing, the Mayor and City Council meeting is not open for public attendance at this time. All meetings will be held via tele-conference. To view the live meeting:  Select the link to view the live-stream on the City’s website: http://sanbernardinocityca.iqm2.com/Citizens/Detail_Meeting.aspx?ID=2997 or  Spectrum & Frontier customers may view the broadcast on Channel 3. You may also view the archived video on the City’s website the day after the meeting. To provide public comments:  Email your written comment to publiccomments@sbcity.org by 4:00 p.m. the day of the scheduled meeting; or  Call (909)384-5208 and leave a recorded comment not to exceed three (3) minutes by 4:00 p.m. the day of the scheduled meeting. 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To view PowerPoint presentations, written comments, or any revised documents for this meeting date select the link below: http://edocs.sbcity.org/WebLink/Browse.aspx?id=4106892&dbid=0&repo=SB Or visit the City Clerk’s page: From the City’s homepage www.sbcity.org select the Government category -->City Clerk-- > on the Navigation menu select Search for Records Online --> Council Agendas--> Current Year 2021--> Meeting Date CITY OF SAN BERNARDINO AGENDA FOR THE REGULAR MEETING OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO ACTING AS THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY, MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO ACTING AS THE SUCCESSOR HOUSING AGENCY TO THE REDEVELOPMENT AGENCY, AND MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO ACTING AS THE HOUSING AUTHORITY WEDNESDAY, JANUARY 20, 2021 5:30 PM – CLOSED SESSION 7:00 PM – OPEN SESSION VIA ZOOM • SAN BERNARDINO, CA 92410 • WWW.SBCITY.ORG Theodore Sanchez John Valdivia Damon L. Alexander COUNCIL MEMBER, W ARD 1 MAYOR COUNCIL MEMBER, WARD 7 Sandra Ibarra Robert D. Field MAYOR PRO-TEM, W ARD 2 CITY MANAGER Juan Figueroa Sonia Carvalho COUNCIL MEMBER, W ARD 3 CITY ATTORNEY Fred Shorett Genoveva Rocha COUNCIL MEMBER, W ARD 4 CITY CLERK Ben Reynoso COUNCIL MEMBER, W ARD 5 Kimberly Calvin COUNCIL MEMBER, W ARD 6 Welcome to a meeting of the Mayor and City Council of the City of San Bernardino. o Written comment on any item may also be submitted to the City Clerk to be included in the meeting record. It will not be read aloud by the City Clerk. o Those who wish to speak on public or quasi-judicial hearing items will have three minutes for each item. o Please contact the City Clerk’s Office (909)384-5002 two working days prior to the meeting for any requests for reasonable accommodation to include interpreters. o All documents for public review are on file with the City Clerk’s Office or may be accessed online by going to www.sbcity.org. Regular Meeting Agenda January 20, 2021 Mayor and City Council of the City of San Bernardino Page 3 Printed 1/15/2021 CALL TO ORDER Attendee Name Present Absent Late Arrived Council Member, Ward 1 Theodore Sanchez    Mayor Pro-Tem, Ward 2 Sandra Ibarra    Council Member, Ward 3 Juan Figueroa    Council Member, Ward 4 Fred Shorett    Council Member, Ward 5 Ben Reynoso    Council Member, Ward 6 Kimberly Calvin    Council Member, Ward 7 Damon L Alexander    Mayor John Valdivia    City Manager Robert D. Field    City Attorney Sonia Carvalho    City Clerk Genoveva Rocha    5:30 P.M. CLOSED SESSION PUBLIC COMMENT CLOSED SESSION (A) CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION (Pursuant to Government Code Section 54956.9(a) and (d)(1): a. San Bernardino Police Officers’ Association v. City of San Bernardino, San Bernardino Superior Court Case No.: CIVDS1817732 (B) CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION Initiation of litigation (Pursuant to Government Code Section 54956.9(d)(4): Two items. (Two Receivership cases) (C) CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION Significant exposure to litigation (Pursuant to Government C ode Section 54956.9(d)(2)): One case - see attached letter. (D) CONFERENCE WITH LABOR NEGOTIATOR (Pursuant to Government Code Section 54957.6): Agency Designated Representative: City Manager; Employee Organizations: International Union of Operating En gineers, General Unit; San Bernardino Police Management Association; Teamsters - Middle Management Unit; San Bernardino Police Officers Association; and San Bernardino Confidential-Management Association (E) CONFERENCE WITH REAL PROPERTY NEGOTIATORS - Pursuant to Government Code Section 54956.8: Property Address: An approximately 17.61 gross acre vacant (retail/commercial) site consisting of 74 parcels located at the southwest corner of East Highland Regular Meeting Agenda January 20, 2021 Mayor and City Council of the City of San Bernardino Page 4 Printed 1/15/2021 and Arden Avenues - APNs 1191-021-01; 1191-021-11 to 69; 1191-041-17 to 22; and 1191-041-25 to 32 Agency Negotiator: Robert D. Field, City Manager Negotiating Parties: Mark Development, Inc. Under Negotiation: Price and Terms 7:00 P.M. INVOCATION AND PLEDGE OF ALLEGIANCE CLOSED SESSION REPORT CITY MANAGER UPDATE APPOINTMENTS 1. Arts and Historical Preservation Commission Appointment (Ward 7) Recommendation Approve the appointment of Mr. Robert A. Porter to the Arts and Historical Preservation Commission representing Ward 7. Mr. Porter will replace Michael R. Tacchia with the term ending December 2024. 2. Public Safety and Human Relations Commission Appointment (Ward 7) Recommendation Approve the appointment of Ms. Deana Cervantez to the Public Safety and Human Relations Commission representing Ward 7. Ms. Cervantez will replace Damon L. Alexander with the term ending December 2024. 3. Parks, Recreation and Community Services Commission Appointment (Ward 7) Recommendation Approve the appointment of Ms. Fay Aldridge to the Parks, Recreation and Community Services Commission representing Ward 7. Ms. Aldridge will replace Janette McKaig with the term ending December 2024. 4. Charter Review Commission Reappointment (Ward 7) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, approve the reappointment of Mr. Philip M. Savage to the Charter Review Commission representing Ward 7, with the term ending December 2024. 5. Measure S Citizens Oversight Committee Appointment (Ward 4) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, approve the appointment of Mr. Michael J. Gallo to the Measure S Citizens Oversight Committee representing Ward 4. Mr. Michael J. Gallo will replace Karina J. Cornejo with the term ending December 2022. Regular Meeting Agenda January 20, 2021 Mayor and City Council of the City of San Bernardino Page 5 Printed 1/15/2021 PRESENTATIONS 6. Public Safety Update (All Wards) PUBLIC COMMENTS FOR ITEMS LISTED AND NOT LISTED ON THE AGENDA STAFF REPORTS 7. Encanto Community Center Improvements Project (Ward 6) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution No. 2021-1: 1. Approving the use of donated funds from the Estate of Sharell Paramo to support a project for renovation of the Encanto Community Center; and 2. Authorizing the Director of Finance to appropriate funds in the amount of $2,236,622 from Donations Fund No. 006 to the Encanto Community Center Improvements Project (“Project”) and amend the FY 2020-21 Capital Improvement Plan to include the Project; and 3. Approving the award of a Professional Services Agreement with Miller Architectural Corporation for Project design services in the amount of $178,385 from Encanto Community Center Improvements Project Fund No. 006-380-8748. CONSENT CALENDAR 8. November and December 2020 City Board, Commission, and Citizen Advisory Committee Approved Minutes Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, receive and file the minutes from the City board, commission, and citizen advisory committee meetings approved in November and December 2020. 9. Approval of the Mayor and City Council Meeting Minutes (All Wards) Recommendation It is recommended that the Mayor and City Council of the City of San Berna rdino, California, approve the minutes from the December 7, 2020, December 16, 2020 and December 18, 2020, Mayor and City Council meetings. 10. General Plan Advisory Committee (All Wards) Recommendation Adopt Resolution No. 2021-2 of the Mayor and City Council of the City of San Bernardino, California, establishing a General Plan Advisory Committee Council to assist with the comprehensive update of the City’s General Plan. Regular Meeting Agenda January 20, 2021 Mayor and City Council of the City of San Bernardino Page 6 Printed 1/15/2021 11. Imposing Liens to Recover Costs for Code Enforcement Abatements (Ward:1, 2, 3, 4, 6 & 7) Recommendation Adopt Resolution No. 2021-3 of the Mayor and City Council of the City of San Bernardino, California, imposing liens on certain real property located within the City of San Bernardino for the costs of public nuisance abatements. 12. Investment Portfolio Report for November 2020 (All Wards) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, accept and file the Monthly Investment Portfolio Report for November 2020. 13. Approval of Commercial and Payroll Disbursements (All Wards) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California approve the commercial and payroll disbursements for December 2020. 14. Audited Financial Statements for Fiscal Year 2019/20 (All Wards) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, receive and file the audited Comprehensive Annual Financial Report (CAFR) for Fiscal Year 2019/20. 15. Initiation of Proceedings to Form Proposed Community Facilities District No. 2021-1 (Ward 3) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California: 1. Adopt Resolution No. 2021-4 of the Mayor and City Council of the City of San Bernardino, California, declaring the intention to establish proposed Community Facilities District (CFD) No. 2021-1 (Ferree Street) of the City of San Bernardino; and 2. Adopt Resolution No. 2021-5 of the Mayor and City Council of the City of San Bernardino, California, declaring necessity to incur a bonded indebtedness of Proposed Community Facilities District (CFD) No. 2021-1 (Ferree Street) of the City of San Bernardino. 16. CFD 2018-1 Annexation 3 (Ward 3) Recommendation Adopt Resolution No. 2021-6 of the Mayor and City Council of the City of San Bernardino, California, acting as the legislative body of Community Facilities District No. 2018-1 of the City of San Bernardino (Safety Services), declaring its intention to consider annexing territory to Community Facilities District No. 2018-1 of the City of San Bernardino (Safety Services). Regular Meeting Agenda January 20, 2021 Mayor and City Council of the City of San Bernardino Page 7 Printed 1/15/2021 17. Resolution to Adopt Escheatment Policy for Unclaimed Money (All Wards) Recommendation Adopt Resolution No. 2021-7 of the Mayor and City Council of the City of San Bernardino, California, adopting an escheatment policy for unclaimed money. 18. Resolution Approving the City's Updated Personnel Rules (All Wards) Recommendation Adopt Resolution No. 2021-8 of the Mayor and City Council of the City of San Bernardino, California, approving the City’s updated Personnel Rules. 19. Authorization to Purchase Data Communication Services from ATEL/TPX Recommendation Adopt Resolution No. 2021-9 of the Mayor and City Council of the City of San Bernardino, California, authorizing the City Manager or designee to authorize and issue purchase orders in an amount not to exceed $1,044,450 to ATEL Communications for the purchase of data communication services from TPX for a period of 60 months. 20. Authorization to Purchase Website Hosting and Migration Services from Intrado for 60 Months Recommendation Adopt Resolution No. 2020-10 of the Mayor and City Council of the City of San Bernardino, California authorizing the City Manager or designee to authorize and issue Purchase Orders in an amount not to exceed $87,835 to Intrado for the purchase of a website content management system and services to host the City’s external website and intranets for five years. 21. Adamson Police Products Purchase Order (All Wards) Recommendation Adopt Resolution No. 2021-11 of the Mayor and City Council of the City of San Bernardino, California, authorizing the Director of Finance to issue a Purchase Order in the amount of $75,000, with three single year renewal options, to Adamson Police Products for the purchase of safety equipment and supplies. 22. Professional Services Agreement for Police Mobile Application (All Wards) Recommendation Adopt Resolution No. 2021-12 of the Mayor and City Council of the City of San Bernardino, California, authorizing the City Manager to execute a Professional Services Agreement between the City of San Bernardino and ITsimple and issue a purchase order in an amount not to exceed $40,000 to develop and provide services for a public safety mobile device application. 23. San Manuel Memorandum of Agreement (Wards 3, 4, 5) Recommendation Adopt Resolution No. 2021-13 of the Mayor and City Council of the City of San Bernardino, California, authorizing the City Manager to accept the San Manuel Band of Mission Indians Memorandum of Agreement in the amount of $3,156,784 through 2024 and amend the FY 2020/21 Adopted Budget. Regular Meeting Agenda January 20, 2021 Mayor and City Council of the City of San Bernardino Page 8 Printed 1/15/2021 24. Accept the FY 2020/21 Tobacco Grant (All Wards) Recommendation Adopt Resolution No. 2021-14 of the Mayor and City Council of the City of San Bernardino, California, to authorize the City Manager to accept the FY 2020/21 Tobacco Grant; authorize the Director of Finance to amend the FY 2020/21 Adopted Budget appropriating $1,169,028 in both revenue and expenditures; and authorize the Police Department to increase the approved staffing. 25. Soccer Field Rehabilitation at Nunez Park (Ward 1) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution No. 2021-15: 1. Approving a total project budget for the Soccer Field Rehabilitation at Nunez Park Project (“Project”) in the amount of $408,000, to include construction in the amount of $360,430, contingencies in the amount of $36,000, and engineering and inspection budgets in the amount of $11,570; and 2. Authorizing the Director of Finance to amend the FY 2020/21 Capital Improvement Plan (CIP) to include the Project and allocating $208,000 from Quimby Act Parkland Fund No. 269 to support the full Project costs; and 3. Approving the award of a Construction Contract with Act Global America, Inc. in the amount of $360,430; and 4. Authorizing the City Manager or designee to expend the contingency fund, if necessary, to complete the project. 26. Declaring Intent to Annex Territory: CFD No. 2019-1 (Maintenance Services): Annexation No.8 (Ward 6) Recommendation Adopt Resolution No. 2021-16 of the Mayor and City Council of the City of San Bernardino, California, declaring its intention to annex territory into Community Facilities District No. 2019-1 (Maintenance Services) of the City of San Bernardino, adopting a map of the area to be proposed (Annexation No. 8) and authorizing the levy of a special taxes therein. 27. Declaring Intent to Annex Territory: CFD No. 2019-1 (Maintenance Services): Annexation No. 7 (Ward 2) Recommendation Adopt Resolution No. 2021-17 of the Mayor and City Council of the City of San Bernardino, California, declaring its intention to annex territory into Community Facilities District No. 2019-1 (Maintenance Services) of the City of San Bernardino, adopting a map of the area to be proposed (Annexation No. 7) and authorizing the levy of a special taxes therein. Regular Meeting Agenda January 20, 2021 Mayor and City Council of the City of San Bernardino Page 9 Printed 1/15/2021 ITEMS TO BE CONSIDERED FOR FUTURE MEETINGS A. Plan for Restarting Regular Meetings of all the City's Advisory Bo ards, Commissions, and Committees Suspended Due to the COVID-19 Pandemic and the Emergency Orders Restricting Gatherings and in Person Meetings - Submitted by Council Member Damon L. Alexander, Ward 7 ITEMS TO BE REFERRED TO COMMITTEE REPORTS ON CONFERENCES/MEETINGS ATTENDED ADJOURNMENT The Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency will adjourn to a Study Session to be held on Wednesday, January 27, 2021, via web-conference. The Study Session will begin at 5:30 p.m. CERTIFICATION OF POSTING AGENDA I, Genoveva Rocha, CMC, City Clerk for the City of San Bernardino, California, hereby certify that the agenda for the January 20, 2021 Regular Meeting of the Mayor and City Council and the Mayor and City Council acting as the Successor Agency to the Redevelopment Agency was posted on the City’s bulletin board located at 201 North “E” Street, San Bernardino, California, at the San Bernardino Public Library located at 555 West 6th Street, San Bernardino, California, and on the City’s website sbcity.org on Friday, January 15, 2021. I declare under the penalty of perjury that the foregoing is true and correct. ___________________________________ Genoveva Rocha, CMC, City Clerk Regular Meeting Agenda January 20, 2021 Mayor and City Council of the City of San Bernardino Page 10 Printed 1/15/2021 NOTICE: Any member of the public may address this meeting of the Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency on any item appearing on the agenda by approaching the microphone in the Council Chamber when the item about which the member desires to speak is called and by asking to be recognized. Any member of the public desiring to speak to the Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency concerning any matter not on the agenda but which is within the subject matter jurisdiction of the Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency may address the body at the end of the meeting, during the period reserved for public comments. Said total period for public comments shall not exceed 60 minutes, unless such time limit is extended by the Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency. A three minute limitation shall apply to each member of the public, unless such time limit is extended by the Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency. No member of the public shall be permitted to “share” his/her three minutes with any other member of the public. Speakers who wish to present documents to the governing body may hand the documents to the City Clerk at the time the request to speak is made. The Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency may refer any item raised by the public to staff, or to any commission, board, bureau, or committee for appropriate action or have the item placed on the next agenda of the Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency. However, no other action shall be taken nor discussion held by the Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency on any item which does not appear on the agenda unless the action is otherwise authorized in accordance with the provisions of subdivision (b) of Section 54954.2 of the Government Code. Public comments will not be received on any item on the agenda when a public hearing has been conducted and closed. Page 1 Closed Session City of San Bernardino Request for Council Action Date: January 20, 2021 To: Honorable Mayor and City Council Members From: Sonia Carvalho, City Attorney Subject: Closed Session (A) CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION (Pursuant to Government Code Section 54956.9(a) and (d)(1): a. San Bernardino Police Officers’ Association v. City of San Bernardino, San Bernardino Superior Court Case No.: CIVDS1817732 (B) CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION Initiation of litigation (Pursuant to Government Code Section 54956.9(d)(4): Two items. (Two Receivership cases) (C) CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION Significant exposure to litigation (Pursuant to Government Code Section 54956.9(d)(2)): One case - see attached letter. (D) CONFERENCE WITH LABOR NEGOTIATOR (Pursuant to Government Code Section 54957.6): Agency Designated Representative: City Manager; Employee Organizations: International Union of Operating Engineers, Genera l Unit; San Bernardino Police Management Association; Teamsters - Middle Management Unit; San Bernardino Police Officers Association; and San Bernardino Confidential-Management Association (E) CONFERENCE WITH REAL PROPERTY NEGOTIATORS - Pursuant to Government Code Section 54956.8: Property Address: An approximately 17.61 gross acre vacant (retail/commercial) site consisting of 74 parcels located at the southwest corner of East Highland and Arden Avenues - APNs 1191-021-01; 1191-021-11 to 69; 1191-041-17 to 22; and 1191-041-25 to 32 Agency Negotiator: Robert D. Field, City Manager Negotiating Parties: Mark Development, Inc. Under Negotiation: Price and Terms Packet Pg. 11 RING & GREEN APC ATTORNEYS AT LAW 3435 OVERLAND AVENUE LOS ANGELES, CALIFORNIA 90034-5405 ROBERT A. RING RINGGREEN.COM FAX (310) 226-2459 SUSAN H. GREEN TELEPHONE (310) 226-2550 January 8,2021 John Valdiva , Mayor Robert D. Field, City Manager Eric McBride, Acting Chief of Police Sonia R. Carvalho, Esq.,City Attorney City of San Bernardino Vanir Tower 290 N. D Street San Bernardino, California 9241 Re: San Bernardino Police Towers Hon. Mayor Valdiva, Mr. Field, Acting Chief McBride and Ms. Carvalho, Esq.: Please be advised I represent Armada Towing, Danny's Towing, City Towing, Hayes Towing and Wilson’s Towing collectively ( "San Bernardino Police Towers") all of whom are San Bernardino based family businesses that have provided generations of service to San Bernardino. A little over 10 years ago when the police towing contracts were coming up for renewal, members of the Police Department and City Manager's office met with all who were interested to help craft an appropriate towing agreement that met the needs of San Bernardino and the business realities of the tow companies. It worked. There was a five-year contract with a five-year renewal. Those contracts are now up June 30, 2021. After numerous requests by the San Bernardino Police Towers as well as my office to provide input as to any new RFP, we have heard nothing. Instead, in the midst of the Covid 19 pandemic when San Bernardino in particular is at the highest level of "Widespread" infection according to the San Bernardino County Covid update, on December 16, 2020 you adopt Resolution 2020 – 306 on the consent calendar for the police towing RFP. This RFP is fatally flawed given both the needs of the city, fundamental fairness and the law. It is a focused RFP where only one company , Pepe's Towing Service ("Pepe's") qualifies. Without any findings by the city whatsoever, San Bernardino is now requiring tow companies expend millions of dollars for several heavy-duty tow vehicles which have never been necessary for ordinary police towing. Pepe's has this equipment. Moreover, the resolution has the simple bald statement that the California Environmental Quality Act (CEQA) has no potential application. However, there is absolutely no environmental impact report demonstrating that potentially 6 to 12 additional heavy-duty tow trucks have zero impact on San Bernardino. San Bernardino is now requesting paved lots by at least April and no later than July 2021. San Bernardino currently does not return phone calls or emails in the permitting process and it is a factual impossibility to get this done given the city's normal inertia and especially today coupled with the Covid 19 pandemic. Ironically, San Bernardino now proposes to lower the standard for tow yard size down to 31,500 sqft. (Pepe’s has aprox. 33,000 sqft. of storage) and provides for auxiliary yards within 3 miles of the city. The 175 vehicle storage requirement is a factual impossibility within 31,500 sqft. This is an a Packet Pg. 12 Attachment: Attachment 1 - Item C Letter from Ring & Green APC (7085 : Closed Session) John Valdiva , Mayor Robert D. Field, City Manager Eric McBride, Acting Chief of Police Sonia R. Carvalho, Esq.,City Attorney page 2, January 8, 2021 inconvenience to the San Bernardino motoring public for no reason whatsoever except to accommodate this focused RFP. Resolution 2020 – 306 at page 223 states, "2020 - 2025 Key Strategic Targets and Goals Establishing a tow rotation system, tow carrier standards, and tow franchise fees, and authorizing the RFP process are consistent with Key Target No.1 Financial Stability by minimizing the risk of litigation exposure for the establishment of a fair and equitable tow rotation service and an open RFP process while also capturing reasonable franchise fees,…" Additionally, RFP F-21-16 At pages 2 and 3 specifically provides San Bernardino with the authority to either amend or withdraw this RFP. Given these goals , your authority, and after decades of service by the San Bernardino Police Towers, it is hereby requested that the RFP process be placed in abeyance so we can have an opportunity to work together to address the true needs of the Police Department and motoring public and not blatantly favor one company to the exclusion of all others. Respectfully, /s/Robert A. Ring Robert A. Ring cc: Council Member Sanchez Council Member Ibarra Council Member Figueroa Council Member Shorett Council Member Reynoso Council Member Calvin Council Member Alexander a Packet Pg. 13 Attachment: Attachment 1 - Item C Letter from Ring & Green APC (7085 : Closed Session) Page 1 Appointment City of San Bernardino Request for Council Action Date: January 20, 2021 To: Honorable Mayor and City Council Members From: Damon L Alexander, Council Member, Ward 7 Subject: Arts and Historical Preservation Commission Appointment (Ward 7) Recommendation Approve the appointment of Mr. Robert A. Porter to the Arts and Historical Preservation Commission representing Ward 7. Mr. Porter will replace Michael R. Tacchia with the term ending December 2024. Background The Arts and Historical Preservation Commission was established by Resolution No. 2018-97 on April 4, 2018 and is charged with advising the Mayor, City Council and City Staff on matters pertaining to the arts, culture, and historic preservation and heritage in the City. The commission is also charged with serving in an advisory capacity to the Planning Commission in making recommendations relating to the designation, preservation and protection of historical properties. Appointees to the commission must have relevant experience or knowledge of visual, performing, literary, and multi -media arts, cultural and architectural heritage or other areas which relate to the mission and purpose of the commission. The commission is comprised of nine (9) members who serve at p leasure of the Mayor and City Council. Pursuant to Chapter 2.17 of the Municipal Code, each City Council member shall nominate one member who shall serve during and for the term of the nominating Council member, and the Mayor shall nominate two members wh o shall serve during and for the term of the Mayor. 2020-2025 Key Strategic Targets and Goals The proposed commission appointment aligns with Key Target No. 2: Focused, Aligned Leadership and Unified Community by building a culture that attracts, retains, and motivates the highest quality talent. Fiscal Impact No fiscal impact to City. Conclusion Approve the appointment of Mr. Robert A. Porter to the Arts and Historical Preservation Commission with the term ending December 2024. 1 Packet Pg. 14 7044 Page 2 Attachments Attachment 1 Commission Application - Mr. Robert A. Porter Ward: 7 1 Packet Pg. 15 1.a Packet Pg. 16 Attachment: Attachment 1 - MCC.Commission application - Robert A. Porter (7044 : Arts and Historical Preservation Commission Appointment 1.a Packet Pg. 17 Attachment: Attachment 1 - MCC.Commission application - Robert A. Porter (7044 : Arts and Historical Preservation Commission Appointment 1.a Packet Pg. 18 Attachment: Attachment 1 - MCC.Commission application - Robert A. Porter (7044 : Arts and Historical Preservation Commission Appointment Page 1 Appointment City of San Bernardino Request for Council Action Date: January 20, 2021 To: Honorable Mayor and City Council Members From: Damon L Alexander, Council Member, Ward 7 Subject: Public Safety and Human Relations Commission Appointment (Ward 7) Recommendation Approve the appointment of Ms. Deana Cervantez to the Public Safety and Human Relations Commission representing Ward 7. Ms. Cervantez will replace Damon L. Alexander with the term ending December 2024. Background The Public Safety and Human Relations Commission was established by Resolution No. 2018-46, on February 21, 2018 and is charged with studying and making recommendations to the Mayor and City Council on matters concerning the City’s law enforcement and fire services, emergency preparedness and traffic safety (including traffic law enforcement and traffic engineering). The commission is comprised of nine (9) members who serve at pleasure of the Mayor and City Council. Pursuant to Chapter 2.17 of the Municipal Code, each City Council member shall nominate one member who shall serve during and for the term of the nominating Council member, and the Mayor shall nominate two members who shall serve during and for the term of the Mayor. 2020-2025 Key Strategic Targets and Goals The proposed commission appointment aligns with Key Target No. 2: Focused, Aligned Leadership and Unified Community by building a culture that attracts, retains, and motivates the highest quality talent. Fiscal Impact No fiscal impact to City. Conclusion Approve the appointment of Ms. Deana Cervantez to the Public Safety and Human Relations Commission with the term ending December 2024. Attachments Attachment 1 Commission Application - Ms. Deana Cervantez 2 Packet Pg. 19 7045 Page 2 Ward: 7 2 Packet Pg. 20 2.a Packet Pg. 21 Attachment: Attachment 1 - MCC.Commission application - Deana Cervantez (7045 : Public Safety and Human Relations Commission 2.a Packet Pg. 22 Attachment: Attachment 1 - MCC.Commission application - Deana Cervantez (7045 : Public Safety and Human Relations Commission 2.a Packet Pg. 23 Attachment: Attachment 1 - MCC.Commission application - Deana Cervantez (7045 : Public Safety and Human Relations Commission Page 1 Appointment City of San Bernardino Request for Council Action Date: January 20, 2021 To: Honorable Mayor and City Council Members From: Damon L Alexander, Council Member, Ward 7 Subject: Parks, Recreation and Community Services Commission Appointment (Ward 7) Recommendation Approve the appointment of Ms. Fay Aldridge to the Parks, Recreation and Community Services Commission representing Ward 7. Ms. Aldridge will replace Janette McKaig with the term ending December 2024. Background The Parks, Recreation and Community Services Commission was established by Resolution No. 2018-47 on February 21, 2018 and is charged with advising the Mayor, City Council and City Staff on matters pertaining to pertaining to parks, recreation, youth and senior affairs in the City. Appointees to the commission must have relative experience or knowledge in the area of parks, recreation services, youth and senior services or other areas which relate to the mission and purpose of the Commission. The commission is comprised of nine (9) members who serve at pleasure of the Mayor and City Council. Pursuant to Chapter 2.17 of the Municipal Code, each City Council member shall nominate one member who shall serve during and for the term of the nominating Council member, and the Mayor shall nominate two members who shall serve during and for the term of the Mayor. 2020-2025 Key Strategic Targets and Goals The proposed commission appointment aligns with Key Target No. 2: Focused, Aligned Leadership and Unified Community by building a culture that attracts, retains, and motivates the highest quality talent. Fiscal Impact No fiscal impact to the City. Conclusion Approve the appointment of Ms. Fay Aldridge to the Parks, Recreation and Community Services Commission with the term ending December 2024. Attachments Attachment 1 Commission Application - Fay Aldridge 3 Packet Pg. 24 7046 Page 2 Ward: 7 3 Packet Pg. 25 3.a Packet Pg. 26 Attachment: Attachment 1 - MCC.Commission application - Fay Aldridge (7046 : Parks, Recreation and Community Services Commission 3.a Packet Pg. 27 Attachment: Attachment 1 - MCC.Commission application - Fay Aldridge (7046 : Parks, Recreation and Community Services Commission 3.a Packet Pg. 28 Attachment: Attachment 1 - MCC.Commission application - Fay Aldridge (7046 : Parks, Recreation and Community Services Commission Page 1 Appointment City of San Bernardino Request for Council Action Date: January 20, 2021 To: Honorable Mayor and City Council Members From: Damon L Alexander, Council Member, Ward 7 Subject: Charter Review Commission Reappointment (Ward 7) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, approve the reappointment of Mr. Philip M. Savage to the Charter Review Commission representing Ward 7, with the term ending December 2024. Background The Charter Review Commission was established by Resolution No. 2017 -243 on December 20, 2017, and is tasked with completing a periodic review of the City Charter to identify potential amendments that enhance clarity, efficiency, and the principles of the council-manager form of government. The commission is comprised of nine (9) members who serve at pleasure of the Mayor and City Council. Pursuant to Chapter 2.17 of the Municipal Code, each City Council member shall nominate one member who shall serve during and for the term of the nominating Council member, and the Mayor. 2020-2025 Key Strategic Targets and Goals The proposed commission appointment aligns with Key Target No. 2: Focused, Aligned Leadership and Unified Community by building a culture that attracts, retains, and motivates the highest quality talent. Fiscal Impact No fiscal impact to City. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California, approve the reappointment of Mr. Philip M. Savage to the Charter Review Commission representing Ward 7, with the term ending December 2024. Attachments Attachment 1 Commission Application - Mr. Philip M. Savage Ward: 7 4 Packet Pg. 29 4.a Packet Pg. 30 Attachment: Attachment 1 - MCC.Commission application - Philip M. Savage (7048 : Charter Review Commission Reappointment (Ward 7)) 4.a Packet Pg. 31 Attachment: Attachment 1 - MCC.Commission application - Philip M. Savage (7048 : Charter Review Commission Reappointment (Ward 7)) 4.a Packet Pg. 32 Attachment: Attachment 1 - MCC.Commission application - Philip M. Savage (7048 : Charter Review Commission Reappointment (Ward 7)) Page 1 Appointment City of San Bernardino Request for Council Action Date: January 20, 2021 To: Honorable Mayor and City Council Members From: Fred Shorett, Council Member, Ward 4 Subject: Measure S Citizens Oversight Committee Appointment (Ward 4) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, approve the appointment of Mr. Michael J. Gallo to the Measure S Citizens Oversight Committee representing Ward 4. Mr. Michael J. Gallo will replace Karina J. Cornejo with the term ending December 2022. Background The Measure “S” Citizens Oversight Committee was established by Resolution No. 2020-248, replacing the Measure “Z” Citizens Oversight Committee. The committee is charged with reviewing and reporting on the spending plan for the one percent general district sales tax generated under Measure S passed by voters on November 3, 2020 , and verifying that the proposed expenditures are in accordance with the Measure S ballot language and the Mayor and Council's adopted strategic goals and priorities. The Committee is also charged with reviewing and reporting annually on the results of the annual audit of the Measure S revenues and expenditures completed by an independent certified public accounting firm. Background The commission is comprised of nine (9) members who serve at pleasure of the Mayor and City Council. Pursuant to Chapter 2.17 of the Municipal Code, each City Council member shall nominate one member who shall serve during and for the term of the nominating Council member, and the Mayor shall nominate two members who shall serve during and for the term of the Mayor. 2020-2025 Key Strategic Targets and Goals The proposed commission appointment aligns with Key Target No. 2: Focused, Aligned Leadership and Unified Community by building a culture that attracts, retains, and motivates the highest quality talent. Fiscal Impact No fiscal impact to City. 5 Packet Pg. 33 7070 Page 2 Conclusion It is recommended that the Mayor and City Council of the City of San B ernardino, California, approve the appointment of Mr. Michael J. Gallo to the Measure S Citizens Oversight Committee representing Ward 4. Mr. Michael J. Gallo will replace Karina J. Cornejo with the term ending December 2022. Attachments Attachment 1 Commission Application - Mr. Michael J. Gallo Ward: 4 5 Packet Pg. 34 5.a Packet Pg. 35 Attachment: Attachment 1 - MCC.Commission application - Michael J. Gallo (7070 : Measure S Citizens Oversight Committee Appointment 5.a Packet Pg. 36 Attachment: Attachment 1 - MCC.Commission application - Michael J. Gallo (7070 : Measure S Citizens Oversight Committee Appointment 5.a Packet Pg. 37 Attachment: Attachment 1 - MCC.Commission application - Michael J. Gallo (7070 : Measure S Citizens Oversight Committee Appointment Page 1 Presentation City of San Bernardino Request for Council Action Date: January 20, 2021 To: Honorable Mayor and City Council Members From: Robert D. Field, City Manager By:Eric McBride, Acting Chief of Police Subject: Public Safety Update (All Wards) 6 Packet Pg. 38 Page 1 Staff Report City of San Bernardino Request for Council Action Date: January 20, 2021 To: Honorable Mayor and City Council Members From: Robert D. Field, City Manager By:Kris Jensen, Director of Public Works Subject: Encanto Community Center Improvement Project (Ward 6) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution No. 2021-1: 1. Approving the use of donated funds from the Estate of Sharell Paramo to supp ort a project for renovation of the Encanto Community Center; and 2. Authorizing the Director of Finance to appropriate funds in the amount of $2,236,622 from Donations Fund No. 006 to the Encanto Community Center Improvements Project (“Project”) and amend the FY 2020-21 Capital Improvement Plan to include the Project; and 3. Approving the award of a Professional Services Agreement with Miller Architectural Corporation for Project design services in the amount of $178,385 from Encanto Community Center Improvements Project Fund No. 006-380-8748. Background In January 1967 the City of San Bernardino entered into a Neighborhood Facilities Agreement Grant Contract with the United States of America, Department of Housing and Urban Development (HUD). This grant contract provided federal funding assistance, under Title VII of the Housing and Urban Development Act of 1965, for the construction of a neighborhood facility at Encanto Park, originally known as the Encanto Community Center. The contract was approved through Resolution 10087 and the Encanto Community Center Building was constructed in 1968. The facility, as constructed, houses classrooms, activity rooms, community rooms, a gymnasium, a warming kitchen, and offices. On January 7, 1970, the City entered into a 50-year lease agreement with the Boys and Girls Club of San Bernardino (BGCSB), commencing on February 1, 1970, and terminating on January 31, 2020. The primary purpose of entering this lease was to provide the operation of neighborhood facilities for nonprofit, public and private agencies whose programs focused on providing physical, educational, vocational, rehabilitative, preventative, or recreational services to the community. 7 Packet Pg. 39 7016 Page 2 On August 1, 2018, BGCSB separated from the Boys and Girls Club o f America and changed the name of the organization to the Center for Youth and Community Development (CYCD). The CYCD remained as the leaseholder in the facility and continued to provide programmed services to the community through the term of the lease. CYCD vacated the premises at the conclusion of the lease agreement on January 31, 2020, relocating to 468 W. 5th Street in San Bernardino. CYCD continues to provide services to the community at the 5th Street location. Upon CYCD’s vacation of the community center, staff performed inspections of the facility and identified several cosmetic and mechanical deficiencies. Staff determined that replacement of the roof and the heating, ventilation and air conditioning system were the most critical priority needs to preserve the facility from further declines in condition. As such, capital improvement plan (CIP) projects were added to the Fiscal Year 2020/21 CIP for these replacements. On June 24, 2020, the Mayor and City Council approved Resolution No. 2020 -128 adopting the City’s Annual Operating Budget for Fiscal Year 2020/21. The budget included CIP Project No. PR21-006 for Encanto Community Center Roof Replacement and established $665,000 in Community Development Block Grant (CDBG) funding (Fund 119) for the project. Additionally, $250,000 in Cultural Development Funds (Fund 247) was established to support the HVAC replacements. While these projects are critical to address deferred maintenance and preserve the facility, many additional maintenance needs exist that need to be addressed prior to establishing full occupancy of the facility. Discussion The City received a donation from the estate of Sharell Paramo in the amount of $1,500,000 during FY 2019/20. The donor stipulated that funds be dedicated only for use by the Parks, Recreation and Community Service Department (Parks Department). The funds have placed in a separate sub-fund to ensure that the full amount of the donation is used in accordance with the donor’s intentions. One additional distribution was received in August 2020, bringing the total donation received to date to $2,236,622. Staff is awaiting confirmation regarding any additional distribution payments. Given that the estate requires use by the Parks Department, staff has been discussing the highest and best use of this funding to serve the community for recreation purposes. Staff has evaluated the potential for using the funds to address needed rehabilitation of the Encanto Community Center, with the goal to ultimately house the Parks Depar tment administrative staff at the facility. This facility houses the only City owned gymnasium in the western portion of the City, and provides walking access for youth from Wards 1, 2, 3 and 6. Currently, the Parks Department shares administrative space with the City Clerk’s Office and Finance Department staff at the City’s 201 N. D Street Building. Relocating the Parks Department to the community center would present an opportunity to provide the community with a full complement of expanded recreational programs and services at 7 Packet Pg. 40 7016 Page 3 the facility. Relocating Parks Department staff to this facility would also free up existing office space in the 201 North “D” Street Building that could be considered for establishing a centralized public counter for the 201 facility. Designating the use of the Sharell Paramo estate donation for renovations at the community center will allow the City to address needed improvements and deferred maintenance above and beyond the roof and HVAC replacements. ADA compliance items must be addressed and upgrades to current floor plans must be considered to establish available space for social distancing now and in the future. These renovations are key to restoring this center to a functional and inviting condition for use by the community and further aid in consideration of the Parks Department relocation opportunity. Contract architectural design services are needed to establish plans for any potential renovation of facility. On October 22, 2020, Public Works Engineering staff met with three architectural firms that were previously established as on -call consultants to the City for support of project design services. These firms included Infrastructure Engineers, Miller Architectural Company and BOA Architecture. Staff discussed the facility improvements needed and solicited proposals from each of the firms for design services. Proposals were received from all three firms and were evaluated and rated by staff. While all three proposals received met the design services requirements, Mil ler Architectural Corporation received superior ratings in the areas of related experience, adequacy of staff, completion schedule, depth of understanding of the project and project approach. Miller Architectural Corporation has extensive experience and successfully completed similar projects for numerous cities Statewide. Miller Architectural Corporation has submitted to provide design services for this project in a total amount of $178,385. Design services performed will incorporate renovation and design for facility uses including classrooms, youth programs, activity rooms, a community room, a warming kitchen, a reception/lobby area, and administrative offices. ADA improvements, parking lot improvements, monument signage, and landscaping improvements wil l also be incorporated. These design services are necessary to determine renovation cost estimates for the facility and finished design plans will be used for development construction bid specifications. If awarded by the Mayor and City Council, project design is anticipated to begin in February 2021 and project design completion is anticipated for June 2021. 2020-2025 Key Strategic Targets and Goals This project is consistent with Key Target No. 1- Financial Stability and Key Target No. 3- Improved Quality of Life. Renovation of the Encanto Community Center will improve and preserve the existing facility and expand recreational services available to the overall community. 7 Packet Pg. 41 7016 Page 4 Fiscal Impact There is no General Fund Impact associated with this project. Upon the Project approval by the Mayor and City Council, funding for design services in the amount of $178,385 will be available through the Project budgets established through the Sharell Paramo estate donation (Fund No. 006). Design and construction of renova tions at this center are consistent with the designated use of this funding as completion of the project will support restoration and expansion of Parks Department programming. Encanto Community Center Projects - Funding Summary Roof Replacement-Approved CDBG Funding (119-160-8756) $ 665,000 HVAC Replacement-Cultural Development Funding (247-160-8756) $ 250,000 Center Renovation - Donation Fund No. 006 (006-380-8748) $ 2,236,622 Encanto Community Center Projects Cumulative Funding Total: $3,151,622 Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution No. 2021-1: 1. Approving the use of donated funds from the Estate of Sharell Paramo to support a project for renovation of the Encanto Community Center; and 2. Authorizing the Director of Finance to appropriate funds in the amount of $2,236,622 from Donations Fund No. 006 to the Encanto Community Center Improvements Project (“Project”) and amend the FY 2020-21 Capital Improvement Plan to include the Project; and 3. Approving the award of a Professional Services Agreement with Miller Architectural Corporation for Project design services in the amount of $178,385 from Encanto Community Center Improvements Project Fund No. 006 -380-8748. Attachments Attachment 1 Resolution No. 2021-1 Attachment 2 Exhibit "A” - Agreement with Miller Architectural Corporation Attachment 3 Location Map - Encanto Community Center Ward: 6 Synopsis of Previous Council Actions: April 15, 2020 Mayor and City Council approved the City’s Draft FY 2020-2021 Annual Action Plan Associated with the Community Development Block Grant, HOME Investment Partnerships and Emergency Solutions Grant Programs. June 24, 2020 Mayor and City Council adopted Resolution No. 2020-128 approving Capital Improvement Program FY 2020/21. 7 Packet Pg. 42 RESOLUTION NO. 2021-1 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA ADOPT RESOLUTION NO. 2021-XX, APPROVING THE USE OF DONATED FUNDS FROM THE ESTATE OF SHARELL PARAMO TO SUPPORT A PROJECT FOR RENOVATION OF THE ENCANTO COMMUNITY CENTER; AND AUTHORIZING THE DIRECTOR OF FINANCE TO APPROPRIATE FUNDS IN THE AMOUNT OF $2,236,622 FROM DONATIONS FUND NO. 006 TO THE ENCANTO COMMUNITY CENTER IMPROVEMENTS PROJECT (“PROJECT”) AND AMEND THE FY 2020-21 CAPITAL IMPROVEMENT PLAN TO INCLUDE THE PROJECT; AND APPROVING THE AWARD OF A PROFESSIONAL SERVICES AGREEMENT WITH MILLER ARCHITECTURAL CORPORATION FOR PROJECT DESIGN SERVICES IN THE AMOUNT OF $178,385 FROM ENCANTO COMMUNITY CENTER IMPROVEMENTS PROJECT FUND NO. 006-380-8748 WHEREAS, the Encanto Community Center is a City-owned facility that was constructed in 1968 to support programs focused on providing physical, educational, vocational, rehabilitative, preventative, or recreational services to the community; and WHEREAS, due to the age and condition of the building the City desires to construct improvements to the facility to address deferred maintenance needs and redesign existing spaces to allow for the restoration and expansion of recreational services at the facility; and WHEREAS, the City has received a donation from the Estate of Sharell Paramo in the total amount of $2,236,622 and the donor has designated that the donation be used to support the City of San Bernardino Parks and Recreation Department operations and programming; and WHEREAS, in October 2020 staff solicited proposals for design services from three previously approved on-call architectural firms; and WHEREAS, following a comprehensive review and rating of all proposals submitted, staff has determined Miller Architectural Corporation to be the most qualified firm to provide design services and prepare plans, specifications and cost estimates (PS&E) for the Project for a total fee of $178,385; and WHEREAS, the City now desires to enter into a Professional Service agreement (PSA) with Miller Architectural Corporation to begin providing design services for the Project. BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: 7.a Packet Pg. 43 Attachment: Attachment 1 - Resolution No. 2021-1 (7016 : Encanto Community Center Improvement Project (Ward 6)) Resolution No. 2021-1 SECTION 1. The above recitals are true and correct and are incorporated herein by this reference. SECTION 2. The City Manager is hereby authorized to execute a Professional Services Agreement, and any supporting documents, for Encanto Community Center Improvements Project (“Project”) with Miller Architectural Corporation of Redlands in the amount of $178,385 on behalf of the City, attached hereto and incorporated herein as Exhibit “A”. SECTION 3. The Director of Finance is hereby authorized to appropriate funds from the Estate of Sharell Paramo in the amount of $2,236,622 (Donations Fund No. 006) to the Encanto Community Center Improvements Project (“Project”), amend the FY 2020 -21 Capital Improvement Plan to include the Project, and issue a Purchase Order to Miller Architectural Corporation for design services in the amount of $178,385 from Project Account No. (006-380- 8748). SECTION 4. The City Council finds that the Project is exempt from further California Environmental Quality Act (CEQA) review under CEQA Guidelines Section 15301, which includes repair, maintenance, and minor alteration of existing public structures involving negligible or no expansion of existing or former use, given that the Project is the renovation of an existing public property and no expansion of its use is proposed. SECTION 5. Severability. If any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications, and to this end the provisions of this Resolution are declared to be severable. SECTION 6. Effective Date. This Resolution shall become effective immediately. APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this ___ day of __________, 2021. John Valdivia, Mayor City of San Bernardino Attest: __________________________________ Genoveva Rocha, CMC, City Clerk Approved as to form: _________________________________ Sonia Carvalho, City Attorney 7.a Packet Pg. 44 Attachment: Attachment 1 - Resolution No. 2021-1 (7016 : Encanto Community Center Improvement Project (Ward 6)) Resolution No. 2021-1 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, City Clerk, hereby certify that the attached is a true copy of Resolution No. 2021-___, adopted at a regular meeting held on the ___ day of _______ 2021 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ REYNOSO _____ _____ _______ _______ CALVIN _____ _____ _______ _______ ALEXANDER _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2021. Genoveva Rocha, CMC, City Clerk 7.a Packet Pg. 45 Attachment: Attachment 1 - Resolution No. 2021-1 (7016 : Encanto Community Center Improvement Project (Ward 6)) PROJECT LOCATION MAP ENCANTO COMMUNITY CENTER 1180 West 9nd Street 7.b Packet Pg. 46 Attachment: Attachment 2 - Location Map-Encanto Community Center (7016 : Encanto Community Center Improvement Project (Ward 6)) 7.c Packet Pg. 47 Attachment: Attachment 3 - Exhibit A Miller (7016 : Encanto Community Center Improvement Project (Ward 6)) 7.c Packet Pg. 48 Attachment: Attachment 3 - Exhibit A Miller (7016 : Encanto Community Center Improvement Project (Ward 6)) 7.c Packet Pg. 49 Attachment: Attachment 3 - Exhibit A Miller (7016 : Encanto Community Center Improvement Project (Ward 6)) 7.c Packet Pg. 50 Attachment: Attachment 3 - Exhibit A Miller (7016 : Encanto Community Center Improvement Project (Ward 6)) 7.c Packet Pg. 51 Attachment: Attachment 3 - Exhibit A Miller (7016 : Encanto Community Center Improvement Project (Ward 6)) 7.c Packet Pg. 52 Attachment: Attachment 3 - Exhibit A Miller (7016 : Encanto Community Center Improvement Project (Ward 6)) 7.c Packet Pg. 53 Attachment: Attachment 3 - Exhibit A Miller (7016 : Encanto Community Center Improvement Project (Ward 6)) 7.c Packet Pg. 54 Attachment: Attachment 3 - Exhibit A Miller (7016 : Encanto Community Center Improvement Project (Ward 6)) 7.c Packet Pg. 55 Attachment: Attachment 3 - Exhibit A Miller (7016 : Encanto Community Center Improvement Project (Ward 6)) 7.c Packet Pg. 56 Attachment: Attachment 3 - Exhibit A Miller (7016 : Encanto Community Center Improvement Project (Ward 6)) 7.c Packet Pg. 57 Attachment: Attachment 3 - Exhibit A Miller (7016 : Encanto Community Center Improvement Project (Ward 6)) 7.c Packet Pg. 58 Attachment: Attachment 3 - Exhibit A Miller (7016 : Encanto Community Center Improvement Project (Ward 6)) 7.c Packet Pg. 59 Attachment: Attachment 3 - Exhibit A Miller (7016 : Encanto Community Center Improvement Project (Ward 6)) 7.c Packet Pg. 60 Attachment: Attachment 3 - Exhibit A Miller (7016 : Encanto Community Center Improvement Project (Ward 6)) 7.c Packet Pg. 61 Attachment: Attachment 3 - Exhibit A Miller (7016 : Encanto Community Center Improvement Project (Ward 6)) 7.c Packet Pg. 62 Attachment: Attachment 3 - Exhibit A Miller (7016 : Encanto Community Center Improvement Project (Ward 6)) 7.c Packet Pg. 63 Attachment: Attachment 3 - Exhibit A Miller (7016 : Encanto Community Center Improvement Project (Ward 6)) 7.c Packet Pg. 64 Attachment: Attachment 3 - Exhibit A Miller (7016 : Encanto Community Center Improvement Project (Ward 6)) 7.c Packet Pg. 65 Attachment: Attachment 3 - Exhibit A Miller (7016 : Encanto Community Center Improvement Project (Ward 6)) 7.c Packet Pg. 66 Attachment: Attachment 3 - Exhibit A Miller (7016 : Encanto Community Center Improvement Project (Ward 6)) Page 1 Consent Calendar City of San Bernardino Request for Council Action Date: January 20, 2021 To: Honorable Mayor and City Council Members From: Cheryl Weeks, Council Administrative Supervisor Subject: November and December 2020 City Board, Commission, and Citizen Advisory Committee Approved Minutes Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, receive and file the minutes from the City board, commission, and citizen advisory committee meetings approved in November and December 2020. Background On February 7, 2018, the Mayor and City Council adopted general provisions for the City’s boards, commissions and citizen advisory committees under Municipal Code Chapter 2.17 requiring meeting minutes to be provided to the Mayor and City Council. Discussion In keeping with the reporting requirements established in Municipal Code Chapter 2.17.080 the minutes for the board, commission and citizen advisory committee meetings approved in November and December 2020 are presented for review by the Mayor and City Council including the: 1. Planning Commission - November 10, 2020 2. Water Board - November 24, 2020; December 8, 2020 2020-2025 Key Strategic Targets and Goals Providing the agendas and minutes from each of the City’s Boards, Commissions and Citizen Advisory Committees to the Mayor and City Council is in alignment with Key Target No. 2: Focused, Aligned Leadership and Unified Community by building a culture that attracts, retains, and motivates the highest quality talent. Fiscal Impact No fiscal impact to the City. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California, receive and file the minutes from the City board, commission, a nd citizen advisory committee meetings approved in November and December 2020. 8 Packet Pg. 67 7051 Page 2 Attachments Attachment 1 City Board, Commission and Citizen Advisory Committee Meeting minutes approved in November and December 2020; Exhibit A - Planning Commission - November 10, 2020; Exhibit B - Water Board - November 24, 2020; December 8, 2020 Ward: All 8 Packet Pg. 68 8.a Packet Pg. 69 Attachment: Attachment 1 - MCC.November.December 2020 BCCAC Approved Minutes.Attachment.(Exhibits A-B).docx (7051 : November and 8.a Packet Pg. 70 Attachment: Attachment 1 - MCC.November.December 2020 BCCAC Approved Minutes.Attachment.(Exhibits A-B).docx (7051 : November and 8.a Packet Pg. 71 Attachment: Attachment 1 - MCC.November.December 2020 BCCAC Approved Minutes.Attachment.(Exhibits A-B).docx (7051 : November and 8.a Packet Pg. 72 Attachment: Attachment 1 - MCC.November.December 2020 BCCAC Approved Minutes.Attachment.(Exhibits A-B).docx (7051 : November and 8.a Packet Pg. 73 Attachment: Attachment 1 - MCC.November.December 2020 BCCAC Approved Minutes.Attachment.(Exhibits A-B).docx (7051 : November and 8.a Packet Pg. 74 Attachment: Attachment 1 - MCC.November.December 2020 BCCAC Approved Minutes.Attachment.(Exhibits A-B).docx (7051 : November and 8.a Packet Pg. 75 Attachment: Attachment 1 - MCC.November.December 2020 BCCAC Approved Minutes.Attachment.(Exhibits A-B).docx (7051 : November and 8.a Packet Pg. 76 Attachment: Attachment 1 - MCC.November.December 2020 BCCAC Approved Minutes.Attachment.(Exhibits A-B).docx (7051 : November and 8.a Packet Pg. 77 Attachment: Attachment 1 - MCC.November.December 2020 BCCAC Approved Minutes.Attachment.(Exhibits A-B).docx (7051 : November and 8.a Packet Pg. 78 Attachment: Attachment 1 - MCC.November.December 2020 BCCAC Approved Minutes.Attachment.(Exhibits A-B).docx (7051 : November and 8.a Packet Pg. 79 Attachment: Attachment 1 - MCC.November.December 2020 BCCAC Approved Minutes.Attachment.(Exhibits A-B).docx (7051 : November and 8.a Packet Pg. 80 Attachment: Attachment 1 - MCC.November.December 2020 BCCAC Approved Minutes.Attachment.(Exhibits A-B).docx (7051 : November and 8.a Packet Pg. 81 Attachment: Attachment 1 - MCC.November.December 2020 BCCAC Approved Minutes.Attachment.(Exhibits A-B).docx (7051 : November and 8.a Packet Pg. 82 Attachment: Attachment 1 - MCC.November.December 2020 BCCAC Approved Minutes.Attachment.(Exhibits A-B).docx (7051 : November and 8.a Packet Pg. 83 Attachment: Attachment 1 - MCC.November.December 2020 BCCAC Approved Minutes.Attachment.(Exhibits A-B).docx (7051 : November and 8.a Packet Pg. 84 Attachment: Attachment 1 - MCC.November.December 2020 BCCAC Approved Minutes.Attachment.(Exhibits A-B).docx (7051 : November and Page 1 Consent Calendar City of San Bernardino Request for Council Action Date: January 20, 2021 To: Honorable Mayor and City Council Members From: Genoveva Rocha, City Clerk Subject: Approval of the Mayor and City Council Meeting Minutes (All Wards) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, approve the minutes from the December 7, 2020, December 16, 2020 and December 18, 2020, Mayor and City Council meetings. Discussion Attached are the following meeting minutes for the Mayor and City Council’s review, consideration, and approval: December 7, 2020, Special Meeting Minutes December 16, 2020, Special Meeting Minutes December 16, 2020, Regular Meeting Minutes December 18, 2020, Continuance of Closed Session Meeting Minutes 2020-2025 Key Strategic Targets and Goals Providing the agenda and minutes from the Mayor and City Council meetings is in alignment with Key Target No. 2: Focused Aligned Leadership, and Unified Community. Fiscal Impact There is no fiscal impact to the City. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California, approve the minutes from the December 7, 2020, December 16, 2020 and December 18, 2020, Mayor and City Council meetings. Attachments Attachment 1 December 7, 2020, draft Special Meeting Minutes Attachment 2 December 16, 2020, draft Special Meeting Minutes Attachment 3 December 16, 2020, draft Regular Meeting Minutes Attachment 4 December 18, 2020, draft Continuance Meeting Minutes Ward: All 9 Packet Pg. 85 City of San Bernardino 201 North E Street San Bernardino, CA 92401 http://www.sbcity.org MINUTES FOR THE SPECIAL MEETING OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO ACTING AS THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY, MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO ACTING AS THE SUCCESSOR HOUSING AGENCY TO THE REDEVELOPMENT AGENCY, MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO ACTING AS THE HOUSING AUTHORITY, AND MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO ACTING AS THE SAN BERNARDINO JOIN POWERS FINANCING AUTHORITY WEDNESDAY, DECEMBER 7, 2020 5:30 PM The Special Meeting of the Mayor and City Council of the City of San Bernardino was called to order at 5:30 PM by Mayor John Valdivia on Wednesday, December 7, 2020, via Web-Conference. CALL TO ORDER Attendee Name Present Absent Late Arrived Mayor Pro-Tem, Ward 1 Theodore Sanchez    Council Member, Ward 2 Sandra Ibarra    Council Member, Ward 3 Juan Figueroa    Council Member, Ward 4 Fred Shorett    Council Member, Ward 5 Henry Nickel    Council Member, Ward 6 Bessine L. Richard    Council Member, Ward 7 James Mulvihill    Mayor John Valdivia    City Manager Robert D. Field    Assistant City Attorney Thomas Rice    City Clerk Genoveva Rocha    INVOCATION AND PLEDGE OF ALLEGIANCE Mayor Valdivia led the Pledge of Allegiance to the Flag. Mayor John Valdivia Council Members Theodore Sanchez Sandra Ibarra Juan Figueroa Fred Shorett Henry Nickel Bessine L. Richard Jim Mulvihill 9.a Packet Pg. 86 Attachment: Attachment 1 - 12-07-2020 Draft Special Meeting Minutes complete (7076 : Approval of the Mayor and City Council Meeting Minutes Special Meeting Minutes December 07, 2020 Mayor and City Council of the City of San Bernardino Page 2 Printed 11/25/2020 PUBLIC COMMENTS FOR ITEMS LISTED ON THE AGENDA There were no public comments for the Special Meeting. STAFF REPORT 1. Adopt a Resolution Declaring and Certifying the Election Results of Measure S (All Wards) Recommendation: It is recommended that the Mayor and City Council take the following action: Adopt Resolution No. 2020-304 of the Mayor and City Council of the City of San Bernardino, California, reciting the fact of the General Municipal Election held on November 3, 2020 and declaring the results of Measure S. City Clerk Genoveva Rocha provided a brief presentation to the Mayor and City Council and explained the need to certify the election results of Measure S before December 11, 2020. If the election results were not certified by that da te, then the Measure S tax collection will not start on April 1, 2021, as anticipated, but will be delayed until July 1, 2021. The revenue loss would represent a fiscal quarter of potential sales tax revenue not collected and remitted to the City. RESULT: Adopt Resolution No. 2020-304 Declaring and Certifying the Election Results of Measure S (All Wards) MOVER: Bessine Richard, Councilmember, Ward 6 SECONDER: Jim Mulvihill, Councilmember, Ward 7 AYES: Sanchez, Ibarra, Figueroa, Shorett, Richard, and Mulvihill NOES: None ABSTAIN: None ABSENT: Nickel ADJOURNMENT The meeting of the Mayor and City Council was adjourned at 5:36 p.m. The Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency adjourn ed to a Special Meeting to be held on Wednesday, December 16, 2020, via Web-conference. The Special Meeting will begin at 5:30 p.m. BY: Genoveva Rocha, CMC City Clerk 9.a Packet Pg. 87 Attachment: Attachment 1 - 12-07-2020 Draft Special Meeting Minutes complete (7076 : Approval of the Mayor and City Council Meeting Minutes City of San Bernardino 201 North E Street San Bernardino, CA 92401 http://www.sbcity.org MINUTES FOR THE SPECIAL MEETING OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO ACTING AS THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY, MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO ACTING AS THE SUCCESSOR HOUSING AGENCY TO THE REDEVELOPMENT AGENCY, MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO ACTING AS THE HOUSING AUTHORITY, AND MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO ACTING AS THE SAN BERNARDINO JOIN POWERS FINANCING AUTHORITY WEDNESDAY, DECEMBER 16, 2020 5:30 PM The Special Meeting of the Mayor and City Counc il of the City of San Bernardino was called to order at 5:34 PM by Mayor John Valdivia on Wednesday, December 16, 2020, via Web-Conference. CALL TO ORDER Attendee Name Present Absent Late Arrived Mayor Pro-Tem, Ward 1 Theodore Sanchez    Council Member, Ward 2 Sandra Ibarra    Council Member, Ward 3 Juan Figueroa    Council Member, Ward 4 Fred Shorett    Council Member, Ward 5 Henry Nickel    Council Member, Ward 6 Bessine L. Richard    5:40 p.m. Council Member, Ward 7 James Mulvihill    Mayor John Valdivia    City Manager Robert D. Field    City Attorney Sonia Carvalho    City Clerk Genoveva Rocha    INVOCATION AND PLEDGE OF ALLEGIANCE Mayor John Valdivia asked Council Member Mulvihill to lead the Pledge of Allegiance to the Flag. Mayor John Valdivia Council Members Theodore Sanchez Sandra Ibarra Juan Figueroa Fred Shorett Henry Nickel Bessine L. Richard Jim Mulvihill 9.b Packet Pg. 88 Attachment: Attachment 2 - 12-16-2020 Draft Special Meeting Minutes (7076 : Approval of the Mayor and City Council Meeting Minutes (All Special Meeting Minutes December 16, 2020 Mayor and City Council of the City of San Bernardino Page 2 Printed 11/25/2020 PUBLIC COMMENTS FOR ITEMS LISTED ON THE AGENDA Dave Mylnarski, San Bernardino, congratulated the incoming Council Members and expressed that he is looking forward to their service to the community. He also thanked staff in the Community and Economic Development Department and wished everyone a happy holiday. STAFF REPORT 1. Certification of the General Municipal Election Results (Wards 5 & 7) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution No. 2020-289, reciting the fact of the General Municipal Election consolidated with the Presidential General Election held on November 3, 2020 declaring the result and such other matters as provided by law. City Clerk Rocha provided an overview of the staff report to the Mayor and City Council. MOTION BY COUNCIL MEMBER MULVIHILL, SECOND BY COUNCIL MEMBER RICHARD, to adopt Resolution No. 2020-289, reciting the fact of the General Municipal Election consolidated with the Presidential General Election held on November 3, 2020 declaring the result and such other matters as provided by law. Council Member Nickel expressed concerns over the residency and inactive voter status for Council Member-Elect Reynoso and stated that Reynoso did not meet the 30 day residency requirement before the nomination period. City Attorney Carvalho stated that after reviewing emails from the Registrar of Voters, it is her understanding that Reynoso was a registered vote r and had a change of address within Ward 5 boundaries. She expressed that for City records, the question can be directed to Mr. Reynoso and to the City Clerk to see if she was able to verify the information. City Clerk Rocha confirmed that Mr. Reynoso provided an affidavit, signed under penalty of perjury, stating that he was a registered voter. Council Member Nickel stated that he will vote yes to certify the election results on Ward 7, but will abstain on Ward 5. 9.b Packet Pg. 89 Attachment: Attachment 2 - 12-16-2020 Draft Special Meeting Minutes (7076 : Approval of the Mayor and City Council Meeting Minutes (All Special Meeting Minutes December 16, 2020 Mayor and City Council of the City of San Bernardino Page 3 Printed 11/25/2020 RESULT: ADOPTED RESOLUTION NO. 2020-289, RECITING THE FACT OF THE GENERAL MUNICIPAL ELECTION CONSOLIDATED WITH THE PRESIDENTIAL GENERAL ELECTION HELD ON NOVEMBER 3, 2020 DECLARING THE RESULT AND SUCH OTHER MATTERS AS PROVIDED BY LAW, CARRIED (6-1) MOVER: James Mulvihill, Councilmember, Ward 7 SECONDER: Bessine Richard, Councilmember, Ward 6 AYES: Sanchez, Ibarra, Figueroa, Shorett, Richard, and Mulvihill ABSTAIN: Nickel NOES: None PRESENTATION 2. Presentation of Certificates of Election and Administration of the Oaths of Office to Newly Elected Officials. City Clerk Rocha administered the Oath of Office to Juan Figueroa, Council Member, Ward 3. City Clerk Rocha administered the Oath of Office to Ben Reynoso, Council Member, Ward 5 City Clerk Rocha administered the Oath of Office to Kimberly Calvin, Council Member, Ward 6 City Clerk Rocha administered the Oath of Office to Damon Alexander, Council Member, Ward 7 ADJOURNMENT The Special Meeting of the Mayor and City council was adjourned at 6:21 p.m. The next joint regular meeting of the Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency will be held on Wednesday, January 20, 2021 via web-conference. Closed Session will begin at 5:30 p.m. and Open Session will begin at 7:00 p.m. BY: Genoveva Rocha, CMC City Clerk 9.b Packet Pg. 90 Attachment: Attachment 2 - 12-16-2020 Draft Special Meeting Minutes (7076 : Approval of the Mayor and City Council Meeting Minutes (All City of San Bernardino 201 North E Street San Bernardino, CA 92401 http://www.sbcity.org MINUTES FOR THE REGULAR MEETING OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO ACTING AS THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY, MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO ACTING AS THE SUCCESSOR HOUSING AGENCY TO THE REDEVELOPMENT AGENCY, MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO ACTING AS THE HOUSING AUTHORITY, AND MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO ACTING AS THE SAN BERNARDINO JOIN POWERS FINANCING AUTHORITY WEDNESDAY, DECEMBER 16, 2020 7:00 PM The Regular Meeting of the Mayor and City Council of the City of San Bernardino was called to order at 7:00 PM by Mayor John Valdivia on Wednesday, December 16, 2020, via Web-Conference. CALL TO ORDER Attendee Name Present Absent Late Arrived Mayor Pro-Tem, Ward 1 Theodore Sanchez    Council Member, Ward 2 Sandra Ibarra    Council Member, Ward 3 Juan Figueroa    Council Member, Ward 4 Fred Shorett    Council Member, Ward 5 Ben Reynoso    Council Member, Ward 6 Kimberly Calvin    Council Member, Ward 7 Damon L. Alexander    Mayor John Valdivia    City Manager Robert D. Field    City Attorney Sonia Carvalho    City Clerk Genoveva Rocha    Mayor John Valdivia Council Members Theodore Sanchez Sandra Ibarra Juan Figueroa Fred Shorett Ben Reynoso Kimberly Calvin Damon L. Alexander 9.c Packet Pg. 91 Attachment: Attachment 3 - 12-16-2020 Draft Regular Minutes (7076 : Approval of the Mayor and City Council Meeting Minutes (All Wards)) Special Meeting Minutes December 16, 2020 Mayor and City Council of the City of San Bernardino Page 2 Printed 11/25/2020 7:00 P.M. Mayor Valdivia congratulated the newly elected Council Members Ben Reynoso, Kimberly Calvin, and Damon L. Alexander and welcomed them to the City Council. INVOCATION AND PLEDGE OF ALLEGIANCE Mayor Valdivia asked Council Member Shorett to lead the Pledge of Allegiance to the Flag. CITY MANAGER UPDATE City Manager Field welcomed the newly elected Council Members Calvin, Reynoso, and Alexander and provided the Mayor and City Council with an update on street projects and improvements in the City. Mr. Fields also spoke on the completed 2019-20 audit, the Water Department renewing their facility lease agreement, Human Resources coordination for COVID testing with the County of San Bernardino, and improvements Animal Services has made to the cat sanctuary. APPOINTMENTS 1. Appointments to Various Regional Boards (All Wards) Recommendation 1. Approve the appointment of Council Member Juan Figueroa to the San Bernardino International Airport Authority Board of Directors, as a voting member, and Council Member Damon Alexander as an alternate; 2. Approve the appointment of Council Members Damon Alexander and Juan Figueroa to the Inland Valley Development Agency, as voting members, and Council Member Theodore Sanchez as an alternate; 3. Approve the appointment of Council Member Benjamin Reynoso to the San Bernardino County Transportation Authority as an alternate; 4. Approve the appointment of Council Member Juan Figueroa to the San Bernardino County Homeless Partnership (referred to Interagency Council on Homelessness), as a voting member, and the same as the Vice Chair for the “sub-committee”; and 5. Approve the appointment of Council Member Benjamin Reynoso to the Omnitrans Board of Directors, as an alternate. SUBSTITUTE MOTION BY COUNCIL MEMBER SANCHEZ, SECOND BY COUNCIL MEMBER IBARRA, to amend the Appointments to Various Regional Boards as follows: 1. Approve the appointment of Council Member Juan Figueroa to the San Bernardino International Airport Authority Board of Directors, as a voting member, and Council Member Fred Shorret as an alternate; 9.c Packet Pg. 92 Attachment: Attachment 3 - 12-16-2020 Draft Regular Minutes (7076 : Approval of the Mayor and City Council Meeting Minutes (All Wards)) Special Meeting Minutes December 16, 2020 Mayor and City Council of the City of San Bernardino Page 3 Printed 11/25/2020 2. Approve the appointment of Council Members T heodore Sanchez and Ben Reynoso to the Inland Valley Development Agency, as voting members, and Council Member Fred Shorett as an alternate; 3. Approve the appointment of Council Member Damon Alexander to the San Bernardino County Transportation Authority as an alternate; 4. Approve the appointment of Council Member Kimberly Calvin to the San Bernardino County Homeless Partnership (referred to Interagency Council on Homelessness), as a voting member, and the same as the Vice Chair for the “sub-committee”; and 5. Approve the appointment of Council Member Sandra Ibarra to the Omnitrans Board of Directors, as an alternate. Council Member Sanchez spoke on giving every Council Member an opportunity to serve on a Regional Board. Council Member Calvin expressed agreement with the substitute motion and asked the Mayor to reconsider his original appointments to the various Regional Boards. Council Member Shorett asked for clarification on the substitute motion and expressed agreement with Council Member Calvin and Council Member Sanchez. Council Member Figueroa stated that it his understanding that the appointments to Regional Boards come from the Mayor’s office and expressed agreement with the appointments the Mayor has made to the San Bernardino International Airpor t Authority and the San Bernardino County Homeless Partnership. Council Member Calvin expressed that the appointments should be spread equally amongst all Council Members and the female Council Members should be represented on the Regional Boards. Council Member Figueroa expressed disagreement with Council Member Figueroa, that the San Bernardino International Airport impacts all residents in the City. RESULT: APPROVED SUBSTITUTE MOTION OF COUNCILMEMBER APPOINTMENTS TO VARIOUS REGIONAL BOARDS, CARRIED (6-1) MOVER: Theodore Sanchez, Ward 1 SECONDER: Sandra Ibarra, Ward 2 AYES: Sanchez, Ibarra, Shorett, Reynoso, Calvin, Alexander NOES: Figueroa 9.c Packet Pg. 93 Attachment: Attachment 3 - 12-16-2020 Draft Regular Minutes (7076 : Approval of the Mayor and City Council Meeting Minutes (All Wards)) Special Meeting Minutes December 16, 2020 Mayor and City Council of the City of San Bernardino Page 4 Printed 11/25/2020 PRESENTATIONS 2. Certificate of Recognition - Paula Beauchamp, SBCTA (San Bernardino County Transit Authority) Mayor Valdivia presented Paula Beauchamp with a Certificate of Recognition and expressed gratitude for the many contributions she has provided to the City of San Bernardino. 3. Mt. Vernon Bridge Presentation by SBCTA Paula Beauchamp, San Bernardino County Transit Authority, provided an update on the Mount Vernon Avenue Bridge Project. PUBLIC COMMENTS FOR ITEMS LISTED AND NOT LISTED ON THE AGENDA Paul Sanborn, San Bernardino, thanked Kim Carter for obtaining a grant to rebuild the dog shelter and wished everyone a happy holiday. Thomas Fleming, San Bernardino, congratulated the newly elected Council Members. Mr. Fleming expressed that the numerous donut shops in San Bernardino have caused diabetes and stated concerns over the Mayor working for pharmaceutical companies and the connection they have. Harry Hatch, San Bernardino, congratulated the newly elected Council Members and wished them good luck. Mr. Hatch encouraged the new Council Members to read the City Charter and also reminded them that they represent the City of San Bernardino. Andy, San Bernardino, expressed his support of the San Bernardino Travel Center. He is a business owner near the proposed travel center and stated that it is needed in that area due to a high volume of traffic. Eric Sanchez, San Bernardino, expressed his support of the San Bernardino Travel Center. Hardy Brown, San Bernardino, congratulated the newly elected Council Members and spoke on Measure Z, reforming the Police Department and the impact COVID-19 has had on the community. Robert Porter, San Bernardino, congratulated the newly elected Council Members. Mr. Porter informed the Mayor and City Council that he applied for the Arts and Historic Preservation Commission and provided an update on the Anne Shirells Park African American Monument. Treasure Ortiz, San Bernardino, expressed appreciation towards the City Council and voiced concerns over the increase in murder rates, failed community policing, financial uncertainty, the City’s General Plan, and spoke on the lack of diversity on the various regional boards. 9.c Packet Pg. 94 Attachment: Attachment 3 - 12-16-2020 Draft Regular Minutes (7076 : Approval of the Mayor and City Council Meeting Minutes (All Wards)) Special Meeting Minutes December 16, 2020 Mayor and City Council of the City of San Bernardino Page 5 Printed 11/25/2020 Leticia Garcia, San Bernardino, spoke on the lack of diversity on the various regional boards. STAFF REPORTS 4. Election of Mayor Pro Tempore (All Wards) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, open nominations for a member of the City Council to serve as Mayor Pro Tempore until the second regularly scheduled Mayor and City Council meeting in December 2021. Mayor Valdivia opened nominations for a member of the City Council to serve a Mayor Pro Tempore until the second regularly scheduled Mayor and City Council meeting in December 2021. MOTION BY COUNCIL MEMBER SANCHEZ, SECOND BY COUNCIL MEMBER CALVIN, to appoint Council Member Ibarra to serve as Mayor Pro Tempore until the second regularly scheduled Mayor and City Council meeting in December 2021. RESULT: APPROVED THE NOMINATION OF COUNCIL MEMBER IBARRA TO SERVE AS MAYOR PRO TEMPORE UNTIL THE SECOND REGULARLY SCHEDULED MAYOR AND CITY COUNCIL MEETING IN DECEMBER 2021, CARRIED 7-0 – Passed Unanimously MOVER: Theodore Sanchez, Ward 1 SECONDER: Kimberly Calvin, Ward 6 AYES: Sanchez, Ibarra, Figueroa, Shorett, Reynoso, Calvin, Alexander NOES: None 5. 2021 Proposed City Council Meetings (All Wards) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, review, discuss, and provide direction concerning Mayor and City Council meeting dates for 2021. MOTION BY COUNCIL MEMBER SANCHEZ, SECOND BY COUNCIL MEMBER IBARRA, TO ADOPT A MODIFIED 2021 MEETING SCHEDULE FOR MAYOR AND CITY COUNCIL MEETINGS, ELIMINATING THE MEETING DATES OF JANUARY 6, 2021 AND JULY 7, 2021. 9.c Packet Pg. 95 Attachment: Attachment 3 - 12-16-2020 Draft Regular Minutes (7076 : Approval of the Mayor and City Council Meeting Minutes (All Wards)) Special Meeting Minutes December 16, 2020 Mayor and City Council of the City of San Bernardino Page 6 Printed 11/25/2020 RESULT: ADOPT A MODIFIED 2021 MEETING SCHEDULE FOR MAYOR AND CITY COUNCIL MEETINGS, ELIMINATING THE MEETING DATES OF JANUARY 6, 2021 AND JULY 7, 2021, CARRIED 7-0 – Passed Unanimously MOVER: Theodore Sanchez, Ward 1 SECONDER: Sandra Ibarra, Ward 2 AYES: Sanchez, Ibarra, Figueroa, Shorett, Reynoso, Calvin, Alexander NOES: None 6. Nuisance Abatement Program (Citywide) Recommendation It is recommended that the Mayor and the City Council of the City of San Bernardino, California, direct the City Manager to establish a Nuisance Abatement Program and amend the FY 2020/21 operating budget to allocate $1 million in one- time funding to be set aside to support the program. City Manager Fields provided an overview of the staff report. Council Member Ibarra stated that at the last Council meeting she made a recommendation for staff to address concerns regarding unfunded Capital Improvement Projects and it was not included in this report. Director of Community and Economic Development Huntley provided a presentation to the Mayor and City Council. Mayor Valdivia spoke on service calls to the Fire Department at abandoned buildings and inquired if Council will continue to be updated on this item. City Manager Fields advised this item initiates Nuisance Abatement Program and staff will provide more background and seek further direction from Council once the program has started. Council Member Alexander expressed that $1 million funding is excessive. Council Member Reynoso also expressed that $1 million funding is excessive and is requesting staff to provide a strategic plan before the start of the program. Council Member Reynoso also expressed that nuisance abatement during the pandemic is not something residents can afford right now. Council Member Figueroa stated that he receives numerous phone calls from residents pertaining to Code Enforcement and inquired as to how long it would take for the program to become self-sustaining and what are the costs associated with not having this type of program. City Manager Fields informed that the program would be a revolving program tha t would establish itself over time and would focus on larger abatement efforts. 9.c Packet Pg. 96 Attachment: Attachment 3 - 12-16-2020 Draft Regular Minutes (7076 : Approval of the Mayor and City Council Meeting Minutes (All Wards)) Special Meeting Minutes December 16, 2020 Mayor and City Council of the City of San Bernardino Page 7 Printed 11/25/2020 Director of Community and Economic Development Huntley advised some of the larger nuisance abatement cases in the City are prolonged issues. Figueroa commented on about the Mayor wants to ensure a lot of funds are spent on services cleaning up the community. Council Member Ibarra suggested that City staff bring back to the Mayor and City Council a workshop to address the unfunded Capital Improvement Projects and funding need for Code Enforcement staff. Council Member Ibarra advised she cannot approve this item. MOTION BY COUNCIL MEMBER IBARRA, SECOND BY COUNCIL MEMBER REYNOSO, to bring this item back to Council in a workshop style. Council Member Sanchez introduced a substitute motion. MOTION BY COUNCIL MEMBER SANCHEZ, SECOND BY COUNCIL MEMBER SHORETT, to approve Staff’s recommendation. Council Member Sanchez expressed that the residents need to be educated and inquired if staff will return to Mayor and City Council with a detailed plan. Director of Community and Economic Development Huntley advised that staff will be returning with a detailed plan once the program has begun. Council Member Shorett expressed that this program is critical and abatements are needed in all wards in the City. Council Member Calvin expressed that she would like to have a nuisance abatement program, however she would like to ensure that the Mayor and City Council are aware as to whom this program will effect. City Manager Fields advised that the intention of the program would be to pursue persistent nuisance abatement issues in the City. Mr. Fields advised that staff is asking for direction to establish the nuisance abatement program which will enhance the quality of life for residents. Council Member Calvin asked how soon staff could provide the Mayor and City Council with a strategic plan for the program. Staff advised they plan on bringing this item back the end of February or the beginning of March. Council Member Alexander expressed that $1 million is excessive when there are other pressing needs and suggested bringing back a trial or temporary program to determine if it will be successful. City Manager Fields explained that the fiscal shape of the City is better than expected and that this is one time savings for the refinancing of pension bonds. Council Member Ibarra would like tangible figures before allocating $1 million to 9.c Packet Pg. 97 Attachment: Attachment 3 - 12-16-2020 Draft Regular Minutes (7076 : Approval of the Mayor and City Council Meeting Minutes (All Wards)) Special Meeting Minutes December 16, 2020 Mayor and City Council of the City of San Bernardino Page 8 Printed 11/25/2020 establish a nuisance abatement program. Council Member Sanchez spoke in support of the program. RESULT: DIRECTED THE CITY MANAGER TO ESTABLISH A NUISANCE ABATEMENT PROGRAM AND AMEND THE FY 2020/21 OPERATING BUDGET TO ALLOCATE $1 MILLION IN ONE-TIME FUNDING TO BE SET ASIDE TO SUPPORT THE NUISANCE ABATEMENT PROGRAM, CARRIED (4-3) MOVER: Theodore Sanchez, Council Member, Ward 1 SECONDER: Fred Shorett, Council Member, Ward 4 AYES: Sanchez, Figueroa, Shorett, Calvin NOES: Ibarra, Reynoso, Alexander CONSENT CALENDAR Items on the Consent Calendar are considered routine and are voted on in a single motion, unless a Council or staff member has pulled the item for more discussion. Council Member Ibarra pulled Consent Calendar Item 14, Council Member Reynoso pulled Item 18, Council Member Calvin pulled Item 12, and Council Member Alexander pulled Items 7 and 10. RESULT: APPROVE THE CONSENT CALENDAR AND PULL ITEM NOS. 7, 10, 12, 14 & 18, Adopted [7- 0] MOVER: Fred Shorett, Council Member, Ward 4 SECONDER: Theodore Sanchez, Council Member, Ward 1 AYES: Sanchez, Ibarra, Figueroa, Shorett, Reynoso, Calvin, Alexander NOES: None 7. October and November 2020 City Board, Commission, and Citizen Advisory Committee Approved Minutes Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, receive and file the minutes from the City Board, Commission, and Citizen Advisory Committee Meetings approved in October and November 2020. Council Member Alexander pulled Item 7 for discussion and requested that an item be added to a future agenda addressing the meetings of City Boards, Commissions and Citizen Advisory Committees and when they will begin meeting again. MOTION BY COUNCIL MEMBER SHORETT, SECOND BY COUNCIL MEMBER REYNOSO, to add this item to a future agenda. 9.c Packet Pg. 98 Attachment: Attachment 3 - 12-16-2020 Draft Regular Minutes (7076 : Approval of the Mayor and City Council Meeting Minutes (All Wards)) Special Meeting Minutes December 16, 2020 Mayor and City Council of the City of San Bernardino Page 9 Printed 11/25/2020 RESULT: ADDED AN ITEM TO A FUTURE MAYOR AND CITY COUNCIL MEETING TO ADDRESS THE MEETINGS OF CITY BOARDS, COMMISSIONS AND CITIZEN ADVISORY COMMITTEES, CARRIED 7-0 – Passed Unanimously MOVER: Fred Shorett, Council Member, Ward 4 SECONDER: Ben Reynoso, Ward 5 AYES: Sanchez, Ibarra, Figueroa, Shorett, Reynoso, Calvin, Alexander NOES: None 8. Approval of Commercial and Payroll Disbursements (All Wards) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California approve the commercial and payroll disbursements for November 2020. 9. Maddy Act Local Appointments List (All Wards) Recommendation Adopt Resolution No. 2020-288 of the Mayor and City Council of the City of San Bernardino, California, approving the Local Appointments List. 10. Amendment to Legal Service Agreement Recommendation Adopt Resolution No. 2020-302 of the Mayor and City Council of the City of San Bernardino, California, authorizing the City Manager to execute a second amendment to the agreement for legal services with Carpenter, Rothans & Dumont LLP. Council Member Alexander pulled Item No. 7 for discussion and to direct questions to City Attorney Carvalho. City attorney Carvalho provided an overview of the staff report. MOTION BY COUNCIL MEMBER SHORETT, SECOND BY COUNCIL MEMBER SANCHEZ, to approve Staff’s recommendation. RESULT: ADOPTED RESOLUTION NO. 2020-302, AUTHORIZING THE CITY MANAGER TO EXECUTE A SECOND AMENDMENT TO THE AGREEMENT FOR LEGAL SERVICES WITH CARPENTER, ROTHANS & DUMONG, LLP, CARRIED (4-3) MOVER: Fred Shorett, Council Member, Ward 4 SECONDER: Theodore Sanchez, Ward 1 AYES: Sanchez, Ibarra, Figueroa, Shorett NOES: Reynoso, Calvin, Alexander 9.c Packet Pg. 99 Attachment: Attachment 3 - 12-16-2020 Draft Regular Minutes (7076 : Approval of the Mayor and City Council Meeting Minutes (All Wards)) Special Meeting Minutes December 16, 2020 Mayor and City Council of the City of San Bernardino Page 10 Printed 11/25/2020 11. Adopt Resolution No. 2020-290 and 2020-301 PLHA Authorization (All Wards) Recommendation 1. Adopt Resolution No. 2020-290 of the Mayor and City Council of the City of San Bernardino, California, authorizing the City Manager or Assistant City Manager to submit an application for the projects utilizing Permanent Local Housing Allocation Funds from the California Department of Housing and Community Development. 2. Adopt Resolution No. 2020-301 of the Mayor and City Council of the City of San Bernardino, California, approving the Permanent Local Housing Allocation Funds Section 302(c)(4) Plan. 12. Development Code Amendment 20-02 (San Bernardino Travel Center) (Ward 6) Recommendation Adopt Ordinance No. MC-1550 of the Mayor and City Council of the City of San Bernardino, California, approving Development Code Amendment (Zoning Map Amendment) 20-02 changing the Zoning District Classification from Commercial General (CG-1) to Industrial Light (IL) of ten (10) parcels containing a total of approximately 8.10 acres (APN: 0266-021-17, 18, 27, 32, 33, 34, 38, 39, 40 and 41), pursuant to a Mitigated Negative Declaration. Council Member Calvin pulled Item 12 for discussion. Council Member expressed that she has not had the opportunity to review the information or speak with the City’s Planning Department or the developers and she would like to address the commun ity members and constituents of Ward 5. MOTION BY COUNCIL MEMBER CALVIN, SECOND BY COUNCIL MEMBER REYNOSO, to table Item No. 12 until she can speak with planning or the developers of the project, CARRIED 4-3 (COUNCIL MEMBERS: SANCHEZ, FIGUEROA, AND SHORETT OPPOSED) MAYOR VALDIVIA VETOED THE MOTION. MOTION BY COUNCIL MEMBER SANCHEZ, SECOND BY COUNCIL MEMBER SHORETT, to approve staff’s recommendation. Atman Kadakia, Managing Principal at Greens Development, provided a presentation and updated Mayor and City Council regarding the San Bernardino Travel Center. Community and Economic Development Director Huntley provided clarification on what the City Council was being asked to approve. Council Member Reynoso inquired if an Environmental Impact Report has been completed and what the infrastructure responsibilities are of Greens Development. Council Member Reynoso also expressed concerns over traffic around the Travel Center. Mr. Kadakia informed the Mayor and City Council that a t raffic study was performed and the Travel Center will provide safe, overnight truck parking areas and will reduce the 9.c Packet Pg. 100 Attachment: Attachment 3 - 12-16-2020 Draft Regular Minutes (7076 : Approval of the Mayor and City Council Meeting Minutes (All Wards)) Special Meeting Minutes December 16, 2020 Mayor and City Council of the City of San Bernardino Page 11 Printed 11/25/2020 amount of trucks parking on surrounding streets. He also stated that the roads around the Travel Center will be redone and new traffic signals will be installed. Council Member Calvin commented on the possible future deterioration of the streets due to the high traffic of trucks in the area and brought up issues of air quality. Council Member Calvin also mentioned that the truck stop is at an entrance into the City and expressed that the City needs to consider how it is reflected. Mr. Kadakia addressed Council Members concerns and explained the details of the Travel Center. Council Member Figueroa spoke in support of the project and reminded everyone how important truck drivers are and that at the beginning of 2020, they became essential workers. Council Member Reynoso expressed that this item should be tabled so that Council can ensure they are informed before making a decision. RESULT: ADOPTED ORDINANCE NO. MC-1550 OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, APPROVING DEVELOPMENT CODE AMENDMENT 20-02, CARRIED (4-3) MOVER: Theodore Sanchez, Ward 1 SECONDER: Fred Shorett, Council Member, Ward 4 AYES: Sanchez, Figueroa, Shorett, Alexander NOES: Ibarra, Reynoso, Calvin 13. Sales Tax CDTFA Execution (All Wards) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California: 1. Adopt Resolution 2020-291 authorizing the City Manager to execute the Preparatory Agreement and the Administration Agreement with the California Department of Tax and Fee Administration (CDTFA) for implementation of the local transaction and use tax (Measure S); and 2. Adopt Resolution 2020-292 authorizing the examination of Transactions (sales) and Use Tax Records of the CDTFA. 14. Resolution Approving a City-Wide Salary Schedule for Employees of the City of San Bernardino (All Wards) Recommendation Adopt Resolution No. 2020-293 of the Mayor and City Council of the City of San Bernardino, California, approving a City-wide salary schedule for all full-time, part- time, temporary, and seasonal positions effective January 1, 2021 and repealing prior salary schedules and basic compensation plans, including Resolution Nos. 2020-6, 2020-13, 2020-129, and 2020-222. 9.c Packet Pg. 101 Attachment: Attachment 3 - 12-16-2020 Draft Regular Minutes (7076 : Approval of the Mayor and City Council Meeting Minutes (All Wards)) Special Meeting Minutes December 16, 2020 Mayor and City Council of the City of San Bernardino Page 12 Printed 11/25/2020 Council Member Ibarra pulled Item 14 for discussion and requested to receive financials for 2021 before approving this item. MOTION BY COUNCIL MEMBER IBARRA, SECOND BY COUNCIL MEMBER ALEXANDER, to table this item until unaudited financial reports are provided to City Council next year. Edelia Eveland, Director of Human Resources, informed the Mayor and City Council that the updated Salary schedule is to comply with the minimum wage requirements that will take effect January 1, 2021. Secondary motion introduced: MOTION BY COUNCIL MEMBER SHORETT, SECOND BY COUNCIL MEMBER SANCHEZ, to approve Staff’s recommendation. RESULT: ADOPTED RESOLUTION NO. 2020-293 APPROVING A CITY- WIDE SALARY SCHEDULE FOR ALL FULL-TIME, PART-TIME, TEMPORARY, AND SEASONAL POSITIONS EFFECTIVE JANUARY 1, 2021 AND REPEALING PRIOR SALARY SCHEDULES AND BASIC COMPENSATION PLANS, CARRIED (6- 1) MOVER: Fred Shorett, Council Member, Ward 4 SECONDER: Theodore Sanchez, Ward 1 AYES: Sanchez, Figueroa, Shorett, Reynoso, Calvin, Alexander NOES: Ibarra 15. RSVP Grant Augmentation and Budget Amendment FY 2020/21 (All Wards) Recommendation Adopt Resolution No. 2020-296 of the Mayor and City Council of San Bernardino, California, ratifying the grant amendment application submittal and accepting the one- time grant augmentation increase of $5,000, for a total amount available of $59,809 for the Retired Senior Volunteer Program (RSVP) for the period of April 1, 2020 through March 31, 2021. 16. Resolution Establishing a Tow Rotation System, Establishing Tow Carrier Standards, Establishing Franchise Fees for Tow Carriers, and Authorizing the Issuance of a Request for Proposals (RFP) for Tow Rotation Services (All Wards) Recommendation Adopt Resolution No. 2020-306 of the Mayor and City Council of the City of San Bernardino, California, establishing a tow rotation system, establishing tow carrier standards, establishing franchise fees for tow carriers, and authorizing the issuance of a request for proposals (RFP) for tow rotation services. 9.c Packet Pg. 102 Attachment: Attachment 3 - 12-16-2020 Draft Regular Minutes (7076 : Approval of the Mayor and City Council Meeting Minutes (All Wards)) Special Meeting Minutes December 16, 2020 Mayor and City Council of the City of San Bernardino Page 13 Printed 11/25/2020 17. Contract Award for California Theatre Roof Upgrade- (Ward 1) Recommendation Adopt Resolution No. 2020-297 of the Mayor and City Council of the City of San Bernardino, California: 1. Approving a total budget amount of $316,217 for the California Theatre Roof Upgrade (“Project”) to include construction costs in the amount of $272,833, project contingencies in the amount of $27,500, and engineering and inspection budgets in the amount of $15,884; 2. Appropriating an additional $16,217 from the Public Use Facilities Fund and authorizing the Director of Finance to amend the FY 2020/21 CIP to reflect a total Project budget of $316,217; and 4. Approving the award of a construction contract with San Marino Roof Co., Inc. of Orange, California in the amount of $272,833 for the Project. Council Member Reynoso commented that he agrees with this item, however expressed that spending $272,833 on this project during a pandemic seems irresponsible. 18. Approve Final Tract Map No. 20006 (Ward 5) Recommendation Adopt Resolution No. 2020-299 of the Mayor and City Council of the City of San Bernardino, California, approving the Final Map for Tract No. 20006 (Subdivision 16-03) involving the subdivision of a project site containing approximately 28.3 acres into 119 single-family residential lots for the Rancho Palma Specific Plan located on the north side of W. Little League Drive west of N. Palm Avenue, accepting the public dedications as set forth on said map; and authorizing execution of the standard form of agreement for the subdivision improvements. Council Member Reynoso pulled Item 18 for discussion and expressed concerns regarding how close the homes are to one another. He inquired if it would be possible for the developer to redraw the maps and possibly propose a reduced amount of homes. City Attorney Carvalho informed Mayor and City Council that at this point in the process, the action to approve the Final Tract Map is the final step and is an administerial act of the City Council. MOTION BY COUNCIL MEMBER REYNOSO to table this item until the next Mayor and City Council meeting in January. Council discussed the possibility of postponing the approval of this item until the next meeting in January and inquired regarding possible legal action. Secondary motion introduced: MOTION BY COUNCIL MEMBER SHORETT, SECOND BY COUNCIL MEMBER SANCHEZ, to approve Staff’s recommendation. 9.c Packet Pg. 103 Attachment: Attachment 3 - 12-16-2020 Draft Regular Minutes (7076 : Approval of the Mayor and City Council Meeting Minutes (All Wards)) Special Meeting Minutes December 16, 2020 Mayor and City Council of the City of San Bernardino Page 14 Printed 11/25/2020 RESULT: ADOPTED RESOLUTION NO. 2020-299 APPROVING THE FINAL MAP OF TRACT NO. 20006 AND AUTHORIZING EXECUTION OF THE STANDARD FORM OF AGREEMENT FOR THE SUBDIVISION IMPROVEMENTS (ALL WARDS) CARRIED (5-3) MOVER: Fred Shorett, Council Member, Ward 4 SECONDER: Theodore Sanchez, Ward 1 AYES: Sanchez, Figueroa, Shorett, Calvin, Alexander NOES: Ibarra, Reynoso 19. Purchase Order Increase - Southern California Gas Company (Ward: 1) Recommendation Adopt Resolution No. 2020-300 of the Mayor and City Council of the City of San Bernardino, California, approving an increase in Purchase Order No. 2021 -207 with Southern California Gas Company pursuant to Section 3.04.010 B-3, of the Municipal Code for the purchase of compressed natural gas (CNG). 20. Resolution Declaring Waterman Landfill Property as Surplus Land (Ward 3) Recommendation Adopt Resolution No. 2020-303 of the Mayor and City Council of the City of San Bernardino, California, declaring City-owned property located east of Waterman Avenue, and north of Vanderbilt Way and Carnegie Drive, commonly known as the Waterman Landfill, as surplus land; and direct the City M anager to comply with the requirements of the Surplus Land Act, Government Code, Section 54220 et seq., for the disposition of surplus land. ITEMS TO BE CONSIDERED FOR FUTURE MEETINGS A. Dedicated staff time for Local Campaign Finance Regulations including: 1) Election campaign contribution limits; 2) Limits on contributions by applicants and their agents during the permitting process; 3) Limits on solicitation of contributions by elected from applicants and their agents during the permitting process; 4) Disc lose requirements for any contributions for a 12 -month period prior to any Council action involving the contributor – Submitted by Council Member Theodore Sanchez Council Member Sanchez requested that an item be brought to the Mayor and City Council to address Local Campaign Finance Regulations. ITEMS TO BE REFERRED TO COMMITTEE Council Member Figueroa wanted to recognize two businesses in the City, Casa de Flores and Jovi’s Diner, and asked that recognition of City businesses be placed back on the Mayor and City Council Agenda. Council Member Alexander requested staff to update the City’s website with photographs for elected and appointed officials and department directors. 9.c Packet Pg. 104 Attachment: Attachment 3 - 12-16-2020 Draft Regular Minutes (7076 : Approval of the Mayor and City Council Meeting Minutes (All Wards)) Special Meeting Minutes December 16, 2020 Mayor and City Council of the City of San Bernardino Page 15 Printed 11/25/2020 REPORTS ON CONFERENCES/MEETINGS ATTENDED There were no reports on conferences/meetings attended from the Mayor or City Council. RECESS TO CLOSED SESSION The Mayor and City Council recessed to Closed Session at 9:51p.m. CLOSED SESSION PUBLIC COMMENT There were no public comments received for Closed Session. CLOSED SESSION (A) CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION (Pursuant to Government Code Section 54956.9(a) and (d)(1): a. Arrowhead Lodge No. 896 I.B.P.O.E. of W and its members v. City of San Bernardino, San Bernardino Superior Court Case No. CIVDS1913826 (consolidated with San Bernardino Superior Court Case No. CIVSB2024556). b. Ashe Society SB, LLC v. City of San Bernardino, et al., San Bernardino Superior Court Case No. CIVDS1911952 c. EEL Holdings, Inc., LLC v. City of San Bernardino, et al., San Bernardino Superior Court Case No. CIVDS1906467 d. SB Pharma Holdings, Inc. dba The Row House v. City of San Bernardino, San Bernardino Superior Court Case No. CIVDS1914576 e. Rznhead Inc. dba Cookies San Bernardino, et al. v. City of San Bernardino, et al., San Bernardino Superior Court Case No. CIVDS2005179 f. Andrea Miller v. City of San Bernardino, et al., San Bernardino Superior Court Case No. CIVDS2015337 g. Jackie Aboud v. John Valdivia, et al., San Bernardino Superior Court Case No. CIVDS203562 h. Karen Cervantes v. John Valdivia, et al., San Bernardino Superior Court Case No. CIVDS2012538 i. Mirna Cisneros v. John Valdivia, et al., San Bernardino Superior Court Case No. CIVDS2012926 (B) CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION Initiation of litigation (Pursuant to Government Code Section 54956.9(d)(4): One item). CLOSED SESSION REPORT City Attorney Sonia Carvalho stated there was no reportable action for the items discussed. 9.c Packet Pg. 105 Attachment: Attachment 3 - 12-16-2020 Draft Regular Minutes (7076 : Approval of the Mayor and City Council Meeting Minutes (All Wards)) Special Meeting Minutes December 16, 2020 Mayor and City Council of the City of San Bernardino Page 16 Printed 11/25/2020 ADJOURNMENT The Closed Session meeting of the Mayor and City Council was continued to Friday, December 18, 2020 at 4:00 p.m. BY: Genoveva Rocha, CMC City Clerk 9.c Packet Pg. 106 Attachment: Attachment 3 - 12-16-2020 Draft Regular Minutes (7076 : Approval of the Mayor and City Council Meeting Minutes (All Wards)) City of San Bernardino 201 North E Street San Bernardino, CA 92401 http://www.sbcity.org MINUTES FOR THE CONTINUANCE OF THE SPECIAL MEETING OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO ACTING AS THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY, MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO ACTING AS THE SUCCESSOR HOUSING AGENCY TO THE REDEVELOPMENT AGENCY, MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO ACTING AS THE HOUSING AUTHORITY, AND MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO ACTING AS THE SAN BERNARDINO JOIN POWERS FINANCING AUTHORITY FRIDAY, DECEMBER 18, 2020 4:00 PM The Continuance of the Special Meeting of the Mayor and City Council of the City of San Bernardino was called to order at 4:00 PM by Mayor John Valdivia on Friday, December 18, 2020, via Web-Conference. CALL TO ORDER Attendee Name Present Absent Late Arrived Council Member, Ward 1 Theodore Sanchez    Mayor Pro-Tem, Ward 2 Sandra Ibarra    Council Member, Ward 3 Juan Figueroa    Council Member, Ward 4 Fred Shorett    Council Member, Ward 5 Ben Reynoso    Council Member, Ward 6 Kimberly Calvin    Council Member, Ward 7 Damon L. Alexander    Mayor John Valdivia    City Manager Robert D. Field    City Attorney Sonia Carvalho    City Clerk Genoveva Rocha    PLEDGE OF ALLEGIANCE Mayor John Valdivia asked City Manager Fields to lead the Pledge of Allegiance to the Flag. Mayor John Valdivia Council Members Theodore Sanchez Sandra Ibarra Juan Figueroa Fred Shorett Ben Reynoso Kimberly Calvin Damon L. Alexander 9.d Packet Pg. 107 Attachment: Attachment 4 - 12-18-2020 Draft Special Continuance Meeting Minutes (7076 : Approval of the Mayor and City Council Meeting Special Meeting Minutes December 18, 2020 Mayor and City Council of the City of San Bernardino Page 2 Printed 11/25/2020 CLOSED SESSION PUBLIC COMMENT There were no public comments submitted for the Continuance of the Special Meeting of the Mayor and City Council. CLOSED SESSION (A) CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION (Pursuant to Government Code Section 54956.9(a) and (d)(1): a. Ashe Society SB, LLC v. City of San Bernardino, et al., San Bernardino Superior Court Case No. CIVDS1911952 b. EEL Holdings, Inc., LLC v. City of San Bernardino, et al., San Bernardino Superior Court Case No. CIVDS1906467 c. SB Pharma Holdings, Inc. dba The Row House v. City of San Bernardino, San Bernardino Superior Court Case No. CIVDS1914576 d. Rznhead Inc. dba Cookies San Bernardino, et al. v. City of San Bernardino, et al., San Bernardino Superior Court Case No. CIVDS2005179 (B) CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION Initiation of litigation (Pursuant to Government Code Section 54956.9(d)(4): One item). CLOSED SESSION REPORT City Attorney Sonia Carvalho stated there was no reportable action for the items discussed. ADJOURNMENT The Continuance of the Special Meeting of the Mayor and City council was adjourned at 11:30 p.m. The next joint regular meeting of the Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency will be held on Wednesday, January 20, 2021 via web-conference. Closed Session will begin at 5:30 p.m. and Open Session will begin at 7:00 p.m. BY: Genoveva Rocha, CMC City Clerk 9.d Packet Pg. 108 Attachment: Attachment 4 - 12-18-2020 Draft Special Continuance Meeting Minutes (7076 : Approval of the Mayor and City Council Meeting Page 1 Consent Calendar City of San Bernardino Request for Council Action Date: January 20, 2021 To: Honorable Mayor and City Council Members From: Robert D. Field, City Manager By: Michael Huntley, Director of Community & Economic Development Subject: General Plan Advisory Committee (All Wards) Recommendation Adopt Resolution No. 2021-2 of the Mayor and City Council of the City of San Bernardino, California, establishing a General Plan Advisory Committee Council to assist with the comprehensive update of the City’s General Plan. Background In 2019, the Mayor and City Council directed staff to proceed with a comprehensive update to the City’s General Plan. The last time the City prepared a comprehensive update to the General Plan was in 2005. Since then, there have been many determinant factors that compel the City to update the General Plan. Some of the factors include: changes to the state, regional and local economies; changes to the commercial real estate and development industries; technological changes in business and services deliveries related to e-commerce; and other key factors. There have also been a variety of legislative changes at the state level that mandate that specific provisions in the General Plan and Development Code be modernized. The City is very grateful for the support of Assembly Member Ramos on this project. Assembly Member Ramos was instrumental in securing $3 million in State funding for the development of the comprehensive update to the General Plan. His efforts are greatly appreciated by the community. The City was also successful in an award of $625,000 from the State SB2 Planning Grant for the Downtown Specific Plan portion of this project. On September 16, 2020, the Mayor and City Council authorized the execution of a contract with PlaceWorks for professional planning services to assist the City with the preparation of not only the General Plan, but also the creation of a Downtown Specific Plan and an update to the Development Code. On December 15, 2021, an internal kickoff meeting was conducted between the City staff and PlaceWorks project team. Subsequent to this meeting, the establishment of a GPAC is in order. 10 Packet Pg. 109 7031 Page 2 Discussion As a function of the comprehensive update to the General Plan, it is c ustomary to establish a General Plan Advisory Committee (GPAC). The GPAC is an advisory committee established by the Mayor and City Council to assist with the update the City’s comprehensive General Plan. The GPAC serves as an important component of the public participation program providing one of the primary communication channels for the community making recommendations to the Planning Commission and the Mayor and City Council. Committee members will participate in a series of meetings to help shape t he draft plan by providing informed and innovative input to the project team. Members are requested to provide feedback and guidance throughout the General Plan Update. Members are on the GPAC so that they may provide a community perspective on policies and programs proposed for the updated General Plan. Meetings of the GPAC will be open and public in accordance with the Brown Act. The GPAC is proposed to be made up of a total 16 members, with each elected official appointing 2 members. In accordance with the City Charter and the City’s Municipal Code, appointees must be residents of the City of San Bernardino. Appointees should be able to clearly articulate the community perspective and/or the area of the City in which they live. As individual appo intments are considered, staff encourages consideration of appointees’ education, work experience , and background, and how they will be valuable in the update process. Some of the experience that would be considered beneficial includes land use, planning, engineering, architecture, environmental, real estate, housing development and programming, social services administration, transportation etc. Upon the adoption of this resolution, interested residents who wish to serve on the General Plan Advisory Committee may fill out an application and submit the application to the City for consideration by the City Council. Applications are available on the City’s website under Boards, Commissions & Citizen Advisory Committees at: (www.ci.san- bernardino.ca.us/about/boards_commissions_n_citizen_advisory_committees/default.as p.) 2020-2025 Key Strategic Targets and Goals The establishment of a General Plan Advisory Committee aligns with Key Target No. 4: Economic Growth & Development. Specifically, the update to the General Plan and Development Code will establish new long-range planning tools that establish comprehensive development policies and land use regulations facilitating planned growth in the City. The Downtown Specific Plan will also serve as the guiding do cument for future development within the downtown core and facilitate the redevelopment of the Carousel Mall property. Fiscal Impact There is no fiscal impact to the City with the establishment of the General Plan Advisory Committee since the members of the Committee will serve without compensation. 10 Packet Pg. 110 7031 Page 3 Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution No. 2021-2, establishing a General Plan Advisory Committee Council to assist with the comprehensive update of the City’s General Plan. Attachments Attachment 1 Resolution No. 2021-2 Ward: All Synopsis of Previous Council Actions: September 16, 2020 Mayor and City Council authorized the execution of a contract with PlaceWorks for professional planning services to assist the City with the preparation of not only the General Plan, but also the creation of a Downtown Specific Plan and an update to the Development Code. 10 Packet Pg. 111 RESOLUTION NO. 2021-2 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, ESTABLISHING THE GENERAL PLAN ADVISORY COMMITTEE AS AN ADVISORY BODY TO THE MAYOR AND CITY COUNCIL AND APPROVING GUIDING PRINCIPLES TO GUIDE THE WORK OF THE COMMITTEE WHEREAS, the existing City of San Bernardino General Plan was adopted in 2005; and WHEREAS, the Mayor and the City Council have authorized the comprehensive update of the General Plan, the preparation of a Downtown Specific Plan and the update to the Development Code; and WHEREAS, on September 16, 2020, the City Council authorized the execution of a contract with PlaceWorks for professional planning services to assist the City with the preparation of the above for mentioned tasks; and WHEREAS, the General Plan Advisory Committee is intended to be an advisory committee created for the purpose of advising City staff, participating in public outreach and community forums, and making recommendations to the Planning Commission and the Mayor and City Council on various components of the overall project; and WHEREAS, the City Council of the City of San Bernardino desires to formalize the creation of a General Plan Advisory Committee, including the purpose and role of the committee, the number of members and the term, as set forth in this resolution. BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. The City Council hereby forms the General Plan Advisory Committee (GPAC), which shall be an advisory body to the Planning Commission and, ultimately, to the Mayor and City Council. The GPAC shall operate as follows: 1. Purpose The purpose of the GPAC is to actively participate, engage community members and provide recommendations to City staff and the consulting team regarding specific focus areas that relate to the elements under consideration for inclusion in the General Plan. This participation assists City staff and the consulting team in the development of the City’s future long-term goals and policies that carry out the community’s vision for the future. The GPAC will also assist in evaluating amendments to the Development Code that are intended to carry out these long-term goals and policies. 10.a Packet Pg. 112 Attachment: Attachment 1 - Resolution No. 2021-2 (7031 : General Plan Advisory Committee (All Wards)) Resolution No. 2021-2 The formulation of modern development concepts and standards will contribute to the creation of successful implementation tools. 2. Role The GPAC is an advisory committee established by the Mayor and City Council to assist with the update to the City’s comprehensive General Plan. The GPAC serves as an important component of the public participation program providing one of the primary communication channels for the community making recommendations to the Planning Commission and the Mayor and City Council. Committee members will participate in a series of meetings to help shape the draft plan by providing informed and innovative input to the project team. Members are requested to provide feedback and guidance throughout the General Plan Update. Members are on the GPAC so that they may provide a community perspective on policies and programs proposed for the updated General Plan. Participation by the members in the Committee is temporary and will terminate when a new General Plan is adopted by the City Council. It is anticipated that the process will take from 24 to 36 months to complete. 3. Appointment and Makeup The GPAC will be made up of a total 16 members. Each of the elected officials will appoint 2 members. Appointees shall be a resident of the City of San Bernardino. The perspective individuals should be able to clearly articulate the community perspective and/or the area of the City in which they live. As individual appointments are considered, please take into account their education, work experience and background and how they will be valuable in the update process. Some of the experience that would be considered beneficial includes land use, planning, engineering, architecture, environmental, real estate, housing development and programming, social services administration, transportation etc. Each member of the Committee shall serve without compensation and without reimbursement for expenses. 4. Meetings; Appointment of Chair/Vice Chair; Attendance Meetings of the GPAC shall be open and public in accordance with the Brown Act. At the first meeting of the General Plan Advisory Committee, a Chair and Vi ce Chair shall be selected by the Committee at large to manage the meetings. The GPAC members are expected to regularly attend meetings and public workshops. However, it is understood that on occasion, a Committee member may not be able to attend a meeting. Three absences in a calendar year may subject the member to expulsion from the GPAC. 10.a Packet Pg. 113 Attachment: Attachment 1 - Resolution No. 2021-2 (7031 : General Plan Advisory Committee (All Wards)) Resolution No. 2021-2 5. Powers of the Mayor and City Council and Planning Commission Nothing in this Resolution shall be construed as restricting or curtailing any of the powers of the Mayor and City Council and Planning Commission, or as a delegation to the GPAC of any of the authority or discretionary powers vested and imposed by law in such bodies. SECTION 2. The Mayor and City Council finds this Resolution is not subject to the California Environmental Quality Act (CEQA) in that the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty, as in this case, that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. SECTION 3. Severability. If any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications, and to this end the provisions of this Resolution are declared to be severable. SECTION 4. Effective Date. This Resolution shall become effective immediately. APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this 20th day of January 2021. John Valdivia, Mayor City of San Bernardino Attest: __________________________________ Genoveva Rocha, CMC City Clerk Approved as to form: __________________________________ Sonia Carvalho City Attorney 10.a Packet Pg. 114 Attachment: Attachment 1 - Resolution No. 2021-2 (7031 : General Plan Advisory Committee (All Wards)) Resolution No. 2021-2 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, City Clerk, hereby certify that the attached is a true copy of Resolution No. _____, adopted at a regular meeting held at the 20th day of January 2021 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ REYNOSO _____ _____ _______ _______ CALVIN _____ _____ _______ _______ ALEXANDER _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this 20th day of January 2021. ______________________________ Genoveva Rocha, CMC City Clerk 10.a Packet Pg. 115 Attachment: Attachment 1 - Resolution No. 2021-2 (7031 : General Plan Advisory Committee (All Wards)) Page 1 Consent Calendar City of San Bernardino Request for Council Action Date: January 20, 2021 To: Honorable Mayor and City Council Members From: Robert D. Field, City Manager By: Michael Huntley, Director of Community & Economic Development Subject: Imposing Liens to Recover Costs for Code Enforcement Abatements (Ward:1, 2, 3, 4, 6 & 7) Recommendation Adopt Resolution No. 2021-3 of the Mayor and City Council of the City of San Bernardino, California, imposing liens on certain real property located within the City of San Bernardino for the costs of public nuisance abatements. Background On October 5, 2015, the Mayor and City Council adopted Ordinance MC -1418, repealing San Bernardino Municipal Code Chapters 3.68 and 8.27 and amending Chapter 8.30. On September 18, 2019, the Mayor and City Council adopted Ordinance MC-1521, further revising Chapter 8.30. These changes streamlined the process of abating public nuisances on properties and imposing liens to enable the City to recover the costs for abating nuisances. Discussion San Bernardino Municipal Code Section 8.30.050 requires a Resolution be adopted in order to assess unpaid costs of abatements as liens on the respective property tax bill. The Abatement Assessments List is attached hereto as Exhibit A. The first section consists of properties with Administrative Hearing Orders, including one emergency knock-down requested by the Fire Department after the property was deemed a collapse hazard. The knock-down was completed by contractors hired by the City. All property owners listed on the ‘Abatement Assessments’ List have been notified of the abatement costs by way of written notice of an Administrative Hearing. Administrative Hearings were held and resulted in Hearing Orders. The ‘Other Abatement Assessments’ are for public nuisance abatements performed by the Code Division which includes properties that were either secured and/or cleaned via administrative inspection warrants or were red -tagged by Building and Safety and deemed unsafe. Also, included in this section are emergency board -ups requested by the Police and Fire Departments. Emergency board-ups were requested after a break-in 11 Packet Pg. 116 7038 Page 2 has occurred or after fire suppression activities when no responsible parties could be reached. All property owners listed on the ‘Other Abatement Assessments’ list have been notified of the abatement costs These property owners were issued a Notice of Summary Abatement with the option to schedule a hearing per SBMC 8.30.045. Property owners were advised of their right to appeal said costs within ten days, or to pay the costs within 45 days of notice per San Bernardino Municipal Code Section 8.30.030 and 8.30.040. Hearings were not requested and the costs are currently outstanding. To date, no responses have been received. Therefore, staff recommends adopting the Resolution in order to assess such unpaid costs of abatement. The total of outstanding fees for ‘Abatement Assessments’ resulting from Administrative Hearing Officer Orders is $11,039.36. The total for ‘Other Abatement Assessments’, including emergency abatements, is $39,562.88. The grand total of all abatements is $50,602.24. If property owners come forward to pay their costs prior to the City Council meeting, their properties will be removed from Exhibit A. 2020-2025 Key Strategic Targets and Goals The request to impose liens to recover costs for Code Enforcement abatements aligns with Key Target No. 1: Financial Stability and Key Target No. 4: Economic Growth & Development. Imposing liens to cover the costs of public nuisances would ensure that the City recovers the cost of abatement. Fiscal Impact The anticipated amount to be collected is $50,602.24. The amount will be collected incrementally as individual properties are sold and/or lien s are paid off through the escrow process. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution No. 2021-3, approving imposing liens to recover public nuisance abatement costs. Attachments Attachment 1 Resolution No. 2021-3 Attachment 2 Exhibit A Wards: 1, 2, 3, 4, 6 & 7 Synopsis of Previous Council Action: The Code Enforcement Division regularly presents a list of properties for consideration by the Mayor and the City Council establishing liens to recovery public nuisance abatement costs. 11 Packet Pg. 117 RESOLUTION NO. 2021-3 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, IMPOSING LIENS ON CERTAIN REAL PROPERTY LOCATED WITHIN THE CITY OF SAN BERNARDINO FOR THE COSTS OF PUBLIC NUISANCE ABATEMENTS WHEREAS, the City of San Bernardino, pursuant to its authority under Chapter 8.30 of the San Bernardino Municipal Code, did lawfully cause public nuisances to be abated on the properties described in the Abatement Assessments List, a copy of which is attached hereto and incorporated herein as Exhibit A, in this Resolution; and WHEREAS, notice of the abatement costs were given to the owners of record of said properties, and any timely requested hearing has heretofore been held to hear protests of the costs of said abatement before the Administrative Hearing Office, who determined the owner of record is responsible for the costs. BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. The above recitals are true and correct and are incorporated herein by this reference. SECTION 2. Said costs are found to have been incurred by the City pursuant to proceedings under the San Bernardino Municipal Code, and the final statement of costs on file with the City Clerk is hereby confirmed and adopted as special assessments against the properties lists in Exhibit A. SECTION 3. Said sum shall become a lien on said property pursuant to San Bernardino Municipal Code 8.30.050 and shall be collected as a special assessment. SECTION 4. The City Clerk is hereby directed to file a certified copy of this Resolution, including Exhibit A, showing such sums as remained unpaid, to the Recorder and the Auditor of the County of San Bernardino, State of California, directing that each sum be entered as a lien charged against the property as it appears on the current assessment rolls, to be collected at the said time and in the same manner, subject to the same penalties and interest upon delinquencies, as the general taxes for the City of San Bernardino are collected. SECTION 5. The City Council finds this Resolution is not subject to the California Environmental Quality Act (CEQA) in that the activity is covered by the general ru le that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty, as in this case, that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. 11.a Packet Pg. 118 Attachment: Attachment 1 - Resolution No. 2021-3 [Revision 1] (7038 : Imposing Liens to Recover Costs for Code Enforcement Abatements Resolution No. 2021-3 SECTION 6. Severability. If any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications, and to this end the provisions of this Resolution are declared to be severable. SECTION 7. Effective Date. This Resolution shall become effective immediately. APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this ___ day of __________, 2021. John Valdivia, Mayor City of San Bernardino Attest: __________________________________ Genoveva Rocha, CMC, City Clerk Approved as to form: Sonia Carvalho, City Attorney 11.a Packet Pg. 119 Attachment: Attachment 1 - Resolution No. 2021-3 [Revision 1] (7038 : Imposing Liens to Recover Costs for Code Enforcement Abatements Resolution No. 2021-3 CERTIFICATION STATE OF CALIFORNIA) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO) I, Genoveva Rocha, CMC, City Clerk, hereby certify that the attached is a true copy of Resolution No.2021- _____, adopted at a regular meeting held at the ___ day of _______, 2021 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ REYNOSO _____ _____ _______ _______ CALVIN _____ _____ _______ _______ ALEXANDER _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino t his ___ day of ____________ 2021. ___________________________________ Genoveva Rocha, CMC, City Clerk 11.a Packet Pg. 120 Attachment: Attachment 1 - Resolution No. 2021-3 [Revision 1] (7038 : Imposing Liens to Recover Costs for Code Enforcement Abatements EXHIBIT "A" ABATEMENT ASSESSMENTS ADDRESS OWNER Hearing Order WARD COST 1524 W. 7th St.Casa Ramona, Inc. 20-002 1 $10,439.36 464 Norman Rd.Elena Gherman 20-003 3 $600.00 Total:$11,039.36 OTHER ABATEMENT ASSESSMENTS ADDRESS OWNER DATE ABATED WARD COST 1177 W. 11th St. Archibeque, David TR 05/29/20, 06/09/20, 10/13/20 6 $2,520.12 1705 W. Magnolia Grace, Perthalene L.06/08/20, 06/09/20 6 $787.00 534 Sequoia St.KAA Properties 03/18/20 4 $1,323.85 0 Newmark 0154-643-01 EL-Aawar, Shab Trust 8/15/91 10/18/20 4 $1,652.85 2247 N. Lugo Ave.Dominguez, Heidi 07/07/20 7 $3,175.08 1818 Raintree Pl.Ileana Ruiz, Gertudys Sosa 05/06/20 3 $1,736.30 1520 N. Waterman DPSB Quality Investments, LLC 08/01/20 2 $474.92 604 W. Baseline St.(aka 606)Credo, LLC 01/06/20 2 $359.25 1996 N. Del Rosa Ave.Coulis Family Trust 8/29/12 11/6/19, 01/18/20, 03/20/20 2 $1,451.85 1996 N. Del Rosa Ave.Coulis Family Trust 8/29/12 04/6/2020, 07/13/20, 08/22/20 2 $3,815.30 1165 E. 3rd St.Manson, Margaret 06/23/20 1 $9,709.60 2210 E. Highland Ave.Novalk, LLC 05/09/20 7 $784.18 564 W. Magnolia Ave.Padilla, Mary 08/19/20, 08/21/20 2 $2,652.46 1446 N. Mt. Vernon Ave.Liberty Fund, LLC 01/20/20, 06/24/20, 09/10/20 6 $2,439.41 147 S. E St.W & W Realty, LLC 08/24/20 1 $402.82 1595 N. D St. DPND Property Investments,LLC 09/17/20 2 $1,510.31 1224 Crestview Ave.Rivera, Martin 09/02/20 2 $2,766.38 632 W. Baseline St. Credo, LLC 08/14/20 2 $2,001.20 Total:$39,562.88 Grand Total: $50,602.24 11.b Packet Pg. 121 Attachment: Attachment 2 - Exhibit A (7038 : Imposing Liens to Recover Costs for Code Enforcement Page 1 Consent Calendar City of San Bernardino Request for Council Action Date: January 20, 2021 To: Honorable Mayor and City Council Members From: Robert D. Field, City Manager By: Jim Slobojan, Acting Finance Director Subject: Investment Portfolio Report for November 2020 (All Wards) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, accept and file the Monthly Investment Portfolio Report for November 2020. Background The City’s Statement of Investment Policy requires that a monthly Investment Portfolio Report be prepared and submitted to the Mayor and City Council. The Director of Finance will prepare, review, and present the City’s Investment Portfolio Report and confirm that the portfolio is in compliance with the City’s Investment Policy. Discussion The Investment Portfolio Report provides a synopsis of investment activity for the City’s investment portfolio for the month ended November 30, 2020. The City’s Investment Portf olio is in full compliance with the City’s current Investment Policy and California Government Code Section 53601, and there is sufficient cash flow from a combination of liquid and maturing securities, bank deposits, and income to meet the City’s expenditure requirements. 2020-2025 Key Strategic Targets and Goals The acceptance and filing of the attached Investment Portfolio Report aligns with Key Target No. 1: Financial Stability by implementing, maintaining and updating a fiscal accountability plan. Fiscal Impact None Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California, accept and file the Monthly Investment Portfolio Report for November 2020. Attachments Attachment 1 Investment Portfolio Management Summary Report 12 Packet Pg. 122 7019 Page 2 Ward: All Synopsis of Previous Council Actions: None 12 Packet Pg. 123 12.aPacket Pg. 124Attachment: Attachment 1 - FN. Investment Portfolio Management Summary Report. Attachment 1 (7019 : YTM 360 Page 1 Par Value Book Value Maturity Date Stated RateMarket Value November 30, 2020 Portfolio Details - Investments Average BalanceIssuer Portfolio Management CITY OF SAN BERNARDINO Days to MaturityMoody'sCUSIPInvestment # Purchase Date State Local Agency Investment Fund 0.552LOCAL AGENCY INVESTMENT FUND10001 33,011,840.35 33,011,840.35 0.56033,011,840.35SYS 1 33,011,840.3533,011,840.3533,011,840.3530,580,173.68Subtotal and Average 0.552 1 Managed Pool Accounts 0.523CALTRUST GOVT INVESTMENT FUND20008 1,781.15 1,781.15 0.5301,781.1520008 1 1,781.151,781.151,781.151,780.36Subtotal and Average 0.523 1 Corporate Notes 1.908AMERICAN HONDA FINANCE CORP30559 1,000,000.00 1,000,366.25 05/10/20231.95001/10/2020 1,037,390.00 A02665WDH1 890 1.732APPLE INC30554 1,000,000.00 999,024.82 09/11/20221.70012/10/2019 1,026,060.00 Aaa037833DL1 649 1.800APPLE INC30561 1,000,000.00 999,094.42 09/11/20241.80001/24/2020 1,046,250.00 Aa037833DM9 1,380 2.152BANK OF AMERICA CORPORATION30549 1,000,000.00 1,000,000.00 10/30/20222.10010/30/2019 991,940.00 Aa06048WD72 698 1.904BANK OF NEW YORK MELLON CORP30547C 2,000,000.00 2,013,989.13 08/16/20232.20010/16/2019 2,092,040.00 Aaa06406FAD5 988 1.180JOHNSON & JOHNSON30570 1,000,000.00 1,001,123.74 03/01/20211.65003/03/2020 1,002,360.00 Aaa478160BS2 90 2.268J.P. MORGAN CHASE & CO30551 1,000,000.00 1,000,000.00 12/23/20242.30012/23/2019 1,008,150.00 Aaa48128GN97 1,483 1.036J.P. MORGAN CHASE & CO30582 1,000,000.00 1,000,000.00 06/23/20251.05006/23/2020 996,310.00 Aaa48128GU40 1,665 0.789J.P. MORGAN CHASE & CO30595 1,000,000.00 1,000,000.00 08/18/20250.80008/18/2020 990,010.00 Aaa48128GV56 1,721 1.731CHARLES SCHWAB CORP30563 1,064,000.00 1,083,870.29 01/25/20232.65001/27/2020 1,115,231.60 Aa808513AT2 785 2.096TOYOTA MOTOR CREDIT CORP30548 1,000,000.00 1,000,000.00 10/22/20242.12510/22/2019 1,012,020.00 Aaa89236TGN9 1,421 12,097,468.6512,317,761.6012,064,000.0012,098,204.29Subtotal and Average 1.709 1,061 Federal Agency Issues - Coupon 1.567FEDERAL FARM CREDIT BANK30555 2,000,000.00 2,010,555.90 12/13/20212.11012/31/2019 2,039,760.00 Aaa3133EH2T9 377 1.612FEDERAL FARM CREDIT BANK30564 1,000,000.00 999,268.77 02/10/20231.60002/11/2020 1,002,500.00 Aaa3133ELMD3 801 0.572FEDERAL FARM CREDIT BANK30573 1,000,000.00 1,000,000.00 06/03/20240.58006/03/2020 1,001,040.00 Aaa3133ELE67 1,280 0.721FEDERAL FARM CREDIT BANK30579 1,000,000.00 999,548.19 02/20/20250.72006/19/2020 1,000,000.00 Aaa3133ELA46 1,542 0.278FEDERAL FARM CREDIT BANK30596 1,000,000.00 999,668.15 10/05/20230.27010/05/2020 1,000,040.00 Aaa3133EMBQ4 1,038 0.158FEDERAL FARM CREDIT BANK30597 1,000,000.00 1,000,000.00 10/13/20220.16010/13/2020 998,830.00 Aaa3133EMCH3 681 0.138FEDERAL FARM CREDIT BANK30598 1,000,000.00 1,000,000.00 04/08/20220.14010/08/2020 999,000.00 Aaa3133EMCJ9 493 1.781FEDERAL HOME LOAN BANK30522 1,000,000.00 999,842.95 12/24/20201.55001/09/2017 1,000,880.00 Aaa313381P25 23 1.913FEDERAL HOME LOAN BANK30523 1,000,000.00 999,340.86 11/29/20211.87501/19/2017 1,017,400.00 Aaa3130AABG2 363 1.926FEDERAL HOME LOAN BANK30528 1,000,000.00 999,266.93 11/29/20211.87502/14/2017 1,017,400.00 Aaa3130AABG2 363 1.672FEDERAL HOME LOAN BANK30534 1,000,000.00 1,000,184.46 04/07/20211.75006/14/2017 1,005,670.00 Aaa3130AB5A0 127 1.687FEDERAL HOME LOAN BANK30535 1,000,000.00 1,000,837.65 06/11/20211.87506/22/2017 1,009,340.00 Aaa313379RB7 192 2.836FEDERAL HOME LOAN BANK30540C 1,000,000.00 1,000,000.00 01/29/20242.87501/29/2019 1,003,950.00 Aaa3130AFRQ2 1,154 1.726FEDERAL HOME LOAN BANK30565 2,000,000.00 2,000,000.00 02/12/20251.75002/12/2020 2,003,940.00 Aaa3130AJ5F2 1,534 Portfolio CITY AP Run Date: 12/09/2020 - 16:35 PM (PRF_PM2) 7.3.0 Report Ver. 7.3.3b 12.a Packet Pg. 125 Attachment: Attachment 1 - FN. Investment Portfolio Management Summary Report. Attachment 1 (7019 : YTM 360 Page 2 Par Value Book Value Maturity Date Stated RateMarket Value November 30, 2020 Portfolio Details - Investments Average BalanceIssuer Portfolio Management CITY OF SAN BERNARDINO Days to MaturityMoody'sCUSIPInvestment # Purchase Date Federal Agency Issues - Coupon 1.529FEDERAL HOME LOAN BANK30566 1,000,000.00 1,000,000.00 03/25/20241.55003/25/2020 1,002,910.00 Aaa3130AJAX7 1,210 1.341FEDERAL HOME LOAN MORTGAGE CRP30518 1,000,000.00 998,417.90 08/12/20211.12511/07/2016 1,006,990.00 Aaa3137EAEC9 254 1.978FEDERAL HOME LOAN MORTGAGE CRP30525C 425,000.00 424,975.45 01/26/20222.00001/30/2017 433,470.25 Aaa3134GAU44 421 2.096FEDERAL HOME LOAN MORTGAGE CRP30529C 1,000,000.00 1,000,000.00 02/28/20222.12502/28/2017 1,024,810.00 Aaa3134GA5T7 454 1.973FEDERAL HOME LOAN MORTGAGE CRP30530C 1,000,000.00 1,000,000.00 09/16/20212.00003/16/2017 1,015,010.00 Aaa3134GA5C4 289 1.933FEDERAL HOME LOAN MORTGAGE CRP30531 1,000,000.00 999,467.53 07/26/20211.87503/06/2017 1,011,760.00 Aaa3134G9M20 237 2.042FEDERAL HOME LOAN MORTGAGE CRP30537C 1,000,000.00 999,059.01 04/26/20222.00011/06/2017 1,026,310.00 Aaa3134GBP55 511 0.444FEDERAL HOME LOAN MORTGAGE CRP30576 1,000,000.00 1,000,000.00 06/01/20230.45006/01/2020 1,000,180.00 Aaa3134GVB72 912 0.414FEDERAL HOME LOAN MORTGAGE CRP30577 1,000,000.00 1,000,000.00 03/17/20230.42006/17/2020 1,000,520.00 Aaa3134GVQ50 836 0.444FEDERAL HOME LOAN MORTGAGE CRP30578 1,000,000.00 1,000,000.00 12/29/20230.45006/29/2020 999,660.00 Aaa3134GVS82 1,123 0.641FEDERAL HOME LOAN MORTGAGE CRP30581 1,000,000.00 1,000,000.00 06/30/20250.65006/30/2020 998,930.00 Aaa3134GVT99 1,672 0.493FEDERAL HOME LOAN MORTGAGE CRP30583 1,000,000.00 1,000,000.00 03/28/20240.50006/29/2020 997,030.00 Aaa3134GV3T3 1,213 0.444FEDERAL HOME LOAN MORTGAGE CRP30584 1,000,000.00 1,000,000.00 07/22/20240.45007/22/2020 998,600.00 Aaa3134GWCB0 1,329 0.395FEDERAL HOME LOAN MORTGAGE CRP30586 1,000,000.00 1,000,000.00 10/23/20230.40007/23/2020 1,001,550.00 Aaa3134GV6D5 1,056 0.493FEDERAL HOME LOAN MORTGAGE CRP30587 1,000,000.00 1,000,000.00 10/30/20240.50007/30/2020 998,560.00 Aaa3134GWDX1 1,429 0.247FEDERAL HOME LOAN MORTGAGE CRP30590 1,000,000.00 1,000,000.00 11/03/20220.25008/03/2020 999,490.00 Aaa3134GWHD1 702 0.321FEDERAL HOME LOAN MORTGAGE CRP30591 1,000,000.00 1,000,000.00 02/03/20230.32508/03/2020 998,580.00 Aaa3134GWGL4 794 0.360FEDERAL HOME LOAN MORTGAGE CRP30592 1,000,000.00 1,000,277.42 07/28/20230.37507/30/2020 999,820.00 Aaa3134GWDL7 969 0.335FEDERAL HOME LOAN MORTGAGE CRP30593 1,000,000.00 1,000,000.00 04/21/20230.34007/30/2020 998,810.00 Aaa3134GV7M4 871 0.404FEDERAL HOME LOAN MORTGAGE CRP30594 1,000,000.00 1,000,000.00 05/13/20240.41008/13/2020 997,360.00 Aaa3134GWHR0 1,259 0.247FEDERAL HOME LOAN MORTGAGE CRP30599 1,000,000.00 1,000,000.00 07/07/20230.25010/26/2020 999,650.00 Aaa3134GWVF0 948 0.263FEDERAL HOME LOAN MORTGAGE CRP30601 1,000,000.00 1,000,000.00 11/02/20230.32011/02/2020 1,000,230.00 Aaa3134GW6E1 1,066 1.332FEDERAL NATIONAL MORTGAGE ASSO30512C 1,000,000.00 1,000,000.00 03/29/20211.35009/29/2016 1,004,030.00 Aaa3136G4BD4 118 1.411FEDERAL NATIONAL MORTGAGE ASSO30513 1,000,000.00 999,510.94 10/07/20211.37510/13/2016 1,010,730.00 Aaa3135GOQ89 310 1.401FEDERAL NATIONAL MORTGAGE ASSO30515 1,000,000.00 999,629.56 10/07/20211.37510/31/2016 1,010,730.00 Aaa3135G0Q89 310 1.341FEDERAL NATIONAL MORTGAGE ASSO30517 1,000,000.00 1,000,090.96 10/07/20211.37511/03/2016 1,010,730.00 Aaa3135GOQ89 310 1.716FEDERAL NATIONAL MORTGAGE ASSO30519 1,000,000.00 997,037.07 10/07/20211.37511/18/2016 1,010,730.00 Aaa3135G0Q89 310 1.946FEDERAL NATIONAL MORTGAGE ASSO30524 1,000,000.00 1,000,278.59 01/05/20222.00001/23/2017 1,020,570.00 Aaa3135G0S38 400 1.994FEDERAL NATIONAL MORTGAGE ASSO30526 1,000,000.00 999,777.78 01/05/20222.00002/02/2017 1,020,570.00 Aaa3135G0S38 400 2.014FEDERAL NATIONAL MORTGAGE ASSO30532 1,000,000.00 999,562.62 01/05/20222.00003/02/2017 1,020,570.00 Aaa3135G0S38 400 2.140FEDERAL NATIONAL MORTGAGE ASSO30533C 1,000,000.00 1,000,000.00 03/29/20222.17003/29/2017 1,027,050.00 Aaa3136G4MQ3 483 0.513FEDERAL NATIONAL MORTGAGE ASSO30580 1,000,000.00 1,000,000.00 12/22/20230.52006/22/2020 1,000,200.00 Aaa3136G4XE8 1,116 0.592FEDERAL NATIONAL MORTGAGE ASSO30585 1,000,000.00 1,000,000.00 07/22/20250.60007/22/2020 996,230.00 Aaa3136G4ZF3 1,694 0.641FEDERAL NATIONAL MORTGAGE ASSO30588 1,000,000.00 1,000,000.00 08/14/20250.65008/14/2020 998,610.00 Aaa3136G4C43 1,717 0.335FEDERAL NATIONAL MORTGAGE ASSO30589 1,000,000.00 1,000,000.00 08/18/20230.34008/18/2020 997,160.00 Aaa3136G4F99 990 0.533FEDERAL NATIONAL MORTGAGE ASSO30600 1,000,000.00 1,000,000.00 10/27/20250.54010/27/2020 1,000,280.00 Aaa3136G45C3 1,791 Portfolio CITY AP Run Date: 12/09/2020 - 16:35 PM (PRF_PM2) 7.3.0 12.a Packet Pg. 126 Attachment: Attachment 1 - FN. Investment Portfolio Management Summary Report. Attachment 1 (7019 : YTM 360 Page 3 Par Value Book Value Maturity Date Stated RateMarket Value November 30, 2020 Portfolio Details - Investments Average BalanceIssuer Portfolio Management CITY OF SAN BERNARDINO Days to MaturityMoody'sCUSIPInvestment # Purchase Date Federal Agency Issues - Coupon 0.542FEDERAL NATIONAL MORTGAGE ASSO30602 1,000,000.00 1,000,000.00 11/04/20250.55011/04/2020 1,000,370.00 Aaa3135GA2N0 1,799 52,426,598.6952,738,540.2552,425,000.0052,293,245.34Subtotal and Average 1.107 827 Supranationals 1.726INTL BK RECON & DEVELOPMENT30562 1,000,000.00 1,000,000.00 01/27/20231.75001/27/2020 1,002,110.00 Aaa45905U5U4 787 1.913INTL BK RECON & DEVELOPMENT30569 1,000,000.00 1,004,331.52 01/28/20252.05003/03/2020 1,002,130.00 Aaa459058HV8 1,519 2,004,331.522,004,240.002,000,000.002,004,372.87Subtotal and Average 1.820 1,154 Treasury Securities - Coupon 1.919U.S. TREASURY40001C 1,000,000.00 1,000,386.69 08/31/20212.00002/21/2017 1,014,100.00 Aaa912828D72 273 2.348U.S. TREASURY40002 1,000,000.00 999,175.48 07/31/20212.25002/12/2018 1,014,340.00 Aaa912828WY2 242 2.510U.S. TREASURY40003 1,000,000.00 998,129.90 07/31/20212.25006/04/2018 1,014,340.00 Aaa912828WY2 242 2.584U.S. TREASURY40004 1,000,000.00 999,328.29 03/15/20212.37506/25/2018 1,006,640.00 Aaa9128284B3 104 3,997,020.364,049,420.004,000,000.003,996,785.80Subtotal and Average 2.340 215 Certificates of Deposit 1.7261ST TECHNOLOGY FEDERAL CREDIT80034 248,000.00 248,000.00 06/30/20211.75006/30/2016 250,147.7333715LAD2 211 2.022AMERICAN EXPRESS CENTURION BK80038 247,000.00 247,000.00 12/01/20212.05012/01/2016 251,308.3502587DM70 365 2.170BMW BANK80041 247,000.00 247,000.00 02/24/20222.20002/24/2017 252,819.2505580AGK4 450 2.614CAPITAL ONE NATIONAL ASSOC80054 247,000.00 247,000.00 05/30/20242.65005/30/2019 267,437.8414042RLW9 1,276 2.860CITI BANK SALT LAKE CITY UTAH80043 246,000.00 246,000.00 05/24/20212.90005/23/2018 249,164.9617312QM22 174 2.712COMENITY CAPITAL BANK80052 249,000.00 249,000.00 04/15/20242.75004/29/2019 269,847.4020033AU61 1,231 2.416EAGLE BANK80053 249,000.00 249,000.00 05/24/20222.45005/24/2019 257,052.8827002YEP7 539 3.107GOLDMAN SACHS GROUP INC.80046 245,000.00 245,000.00 01/17/20233.15001/16/2019 260,390.8338148P4B0 777 2.910MEDALLION BANK80044 249,000.00 249,000.00 06/04/20212.95006/04/2018 252,445.0158404DCA7 185 2.860MORGAN STANLEY BANK80042 246,000.00 246,000.00 05/10/20212.90005/10/2018 248,911.7561747MX63 160 3.008MORGAN STANLEY PRIVATE BANK80048 246,000.00 246,000.00 01/31/20243.05001/31/2019 267,744.4161760AVF3 1,156 2.564MORGAN STANLEY PRIVATE BANK80055 247,000.00 247,000.00 06/13/20242.60006/13/2019 267,220.3661760AG52 1,290 2.712NORTHWESTERN BANK80049 245,000.00 245,000.00 02/13/20232.75002/13/2019 258,729.60668015AL4 804 2.712OXFORD BANK & TRUST80051 245,000.00 245,000.00 06/28/20222.75002/28/2019 254,638.8969140WAS4 574 2.022STEARNS BANK80039 249,000.00 249,000.00 01/13/20222.05001/13/2017 253,878.76857894SK6 408 1.677SYNCHRONY BANK80036 247,000.00 247,000.00 10/21/20211.70010/21/2016 250,108.1587165FNC4 324 2.959TIAA FSB80050 245,000.00 245,000.00 02/22/20243.00002/22/2019 266,708.7687270LBU6 1,178 2.959UBS FINANCE COMMERCIAL PAPER80045 249,000.00 249,000.00 06/14/20213.00006/13/2018 252,697.8090348JCU2 195 2.022WASHINGTON FIRST BK RESTON80040 247,000.00 247,000.00 02/23/20222.05002/23/2017 252,344.54940727AH3 449 3.156WELLS FARGO BK NA80047 500,000.00 500,000.00 01/18/20243.20001/18/2019 546,283.70949763WU6 1,143 Portfolio CITY AP Run Date: 12/09/2020 - 16:35 PM (PRF_PM2) 7.3.0 12.a Packet Pg. 127 Attachment: Attachment 1 - FN. Investment Portfolio Management Summary Report. Attachment 1 (7019 : YTM 360 Page 4 Par Value Book Value Maturity Date Stated RateMarket Value November 30, 2020 Portfolio Details - Investments Average BalanceIssuer Portfolio Management CITY OF SAN BERNARDINO Days to MaturityMoody'sCUSIPInvestment # Purchase Date Certificates of Deposit 1.726WELLS FARGO BANK80033 249,000.00 249,000.00 06/17/20211.75006/17/2016 251,035.339497485W3 198 5,442,000.005,680,916.305,442,000.005,442,000.00Subtotal and Average 2.548 647 Money Market Funds 0.010WELLS FARGO GOVT MONEY MARKET20002 1,788,917.47 1,788,917.47 0.0101,788,917.47SYS20002 1 1,788,917.471,788,917.471,788,917.472,136,382.32Subtotal and Average 0.010 1 108,552,944.66 110,733,538.97 1.118 568111,593,417.12 110,769,958.19Total and Average Portfolio CITY AP Run Date: 12/09/2020 - 16:35 PM (PRF_PM2) 7.3.0 12.a Packet Pg. 128 Attachment: Attachment 1 - FN. Investment Portfolio Management Summary Report. Attachment 1 (7019 : YTM 360 Page 5 Par Value Book Value Stated RateMarket Value November 30, 2020 Portfolio Details - Cash Average BalanceIssuer Portfolio Management CITY OF SAN BERNARDINO Days to MaturityMoody'sCUSIPInvestment # Purchase Date 0.00 108,552,944.66 110,733,538.97 1.118 568 0 3,466.94 3,466.94 3,466.94 3,466.94 Subtotal Accrued Interest at PurchaseAverage Balance 111,596,884.06 110,773,425.13Total Cash and Investments Portfolio CITY AP Run Date: 12/09/2020 - 16:35 PM (PRF_PM2) 7.3.0 12.a Packet Pg. 129 Attachment: Attachment 1 - FN. Investment Portfolio Management Summary Report. Attachment 1 (7019 : Page 1 Stated Rate Transaction Date November 1, 2020 through November 30, 2020 Activity By Type Balance Portfolio Management CITY OF SAN BERNARDINO CUSIP Investment #Issuer Purchases or Deposits Redemptions or Withdrawals State Local Agency Investment Fund (Monthly Summary) LOCAL AGENCY INVESTMENT FUND10001 5,700,000.000.560 2,750,000.00SYS 2,750,000.00 33,011,840.35Subtotal5,700,000.00 Managed Pool Accounts (Monthly Summary) CALTRUST GOVT INVESTMENT FUND20008 0.820.530 0.0020008 0.00 1,781.15Subtotal0.82 Corporate Notes 12,097,468.65Subtotal Federal Agency Issues - Coupon FEDERAL HOME LOAN MORTGAGE CRP30601 1,000,000.000.320 11/02/2020 0.003134GW6E1 FEDERAL NATIONAL MORTGAGE ASSO30602 1,000,000.000.550 11/04/2020 0.003135GA2N0 0.00 52,426,598.69Subtotal2,000,000.00 Supranationals 2,004,331.52Subtotal Treasury Securities - Coupon 3,997,020.36Subtotal Certificates of Deposit 5,442,000.00Subtotal Money Market Funds (Monthly Summary) WELLS FARGO GOVT MONEY MARKET20002 7,832,653.380.010 8,033,900.81SYS20002 8,033,900.81 1,788,917.47Subtotal7,832,653.38 110,769,958.19Total10,783,900.8115,532,654.20 Portfolio CITY AP Run Date: 12/09/2020 - 16:35 PM (PRF_PM3) 7.3.0 Report Ver. 7.3.3b 12.a Packet Pg. 130 Attachment: Attachment 1 - FN. Investment Portfolio Management Summary Report. Attachment 1 (7019 : Page 1 November 2019 through November 2020 Activity Summary Month Portfolio Management End Year Number of Securities Total Invested 360 Equivalent 365 Equivalent Managed Pool Rate Average Term Average Days to Maturity CITY OF SAN BERNARDINO Number of Investments Purchased Number of Investments Redeemed Yield to Maturity 96,737,190.19November201974 869 4301.945 1.972 2.103 0 2 104,414,539.79December201978 846 4521.942 1.969 2.043 6 2 116,512,135.33January202085 826 4561.903 1.929 1.967 7 0 123,735,583.62February202088 831 4671.870 1.896 1.912 3 0 117,383,961.74March202092 898 5271.760 1.784 1.730 6 2 116,849,030.14April202084 799 4311.720 1.744 1.648 0 8 138,861,091.34May202081 650 3401.523 1.544 1.363 0 3 136,635,240.56June202083 712 4051.432 1.452 1.217 11 9 114,967,808.06July202087 905 5251.310 1.328 0.920 6 2 109,430,118.52August202091 994 5871.247 1.265 0.860 6 2 103,596,103.88September202086 986 5731.214 1.231 0.685 0 5 106,022,285.66October202090 1,002 5871.162 1.178 0.620 5 1 110,769,958.19November202092 986 5681.118 1.133 0.560 2 0 Average 115,070,388.23 1.550%1.571%1.356 4 3 870 48885 Portfolio CITY AP Run Date: 12/09/2020 - 16:35 PM (PRF_PM4) 7.3.0 Report Ver. 7.3.3b 12.a Packet Pg. 131 Attachment: Attachment 1 - FN. Investment Portfolio Management Summary Report. Attachment 1 (7019 : Page 1 November 30, 2020 Interest Earnings Summary Month EndingNovember 30 Fiscal Year To Date Portfolio Management CITY OF SAN BERNARDINO CD/Coupon/Discount Investments: 48,220.95Interest Collected Plus Accrued Interest at End of Period Less Accrued Interest at Beginning of Period 274,320.62 ( 232,714.59) 488,910.39 267,133.12 ( 289,879.23) Less Accrued Interest at Purchase During Period ( 0.00)( 0.00) Interest Earned during Period Adjusted by Premiums and Discounts Adjusted by Capital Gains or Losses Earnings during Periods 89,826.98 -1,080.86 0.00 466,164.28 -6,268.50 0.00 88,746.12 459,895.78 Pass Through Securities: 0.00Interest Collected Plus Accrued Interest at End of Period Less Accrued Interest at Beginning of Period 0.00 ( 0.00) 0.00 0.00 ( 0.00) Less Accrued Interest at Purchase During Period ( 0.00)( 0.00) Interest Earned during Period Adjusted by Premiums and Discounts Adjusted by Capital Gains or Losses Earnings during Periods 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Cash/Checking Accounts: 16.74Interest Collected Plus Accrued Interest at End of Period Less Accrued Interest at Beginning of Period 463,400.15 ( 447,869.44) 281,188.82 463,400.15 ( 630,233.71) Interest Earned during Period 15,547.45 114,355.26 Total Interest Earned during Period Total Adjustments from Premiums and Discounts Total Capital Gains or Losses Total Earnings during Period 105,374.43 -1,080.86 0.00 580,519.54 -6,268.50 0.00 104,293.57 574,251.04 Portfolio CITY AP Run Date: 12/09/2020 - 16:35 PM (PRF_PM6) 7.3.0 Report Ver. 7.3.3b 12.a Packet Pg. 132 Attachment: Attachment 1 - FN. Investment Portfolio Management Summary Report. Attachment 1 (7019 : Page 1 Consent Calendar City of San Bernardino Request for Council Action Date: January 20, 2021 To: Honorable Mayor and City Council Members From: Robert D. Field, City Manager By: Jim Slobojan, Acting Finance Director Subject: Approval of Commercial and Payroll Disbursements (All Wards) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California approve the commercial and payroll disbursements for December 2020. Background Completed commercial and payroll disbursement registers are submitted to the Mayor and City Council for approval. This happens on a regular basis, typically every meeting for the most recently completed disbursement registers. The detailed warrant registers are available on the City Website and are updated weekly by the Finance Department. The registers may be accessed by copying the following link into an internet browser: <http://sbcity.org/cityhall/finance/warrant_register.asp> Discussion Gross Payroll Bi-Weekly for December 10, 2020 2,320,148.99$ Monthly for December 15, 2020 11,666.69 Bi-Weekly for December 23, 2020 2,193,943.73 Total Payroll Demands:4,525,759.41$ The following check registers are being presented for approval: December 10, 2020 2020/21 (Register #25)629,673.98$ December 17, 2020 2020/21 (Register #26)3,897,036.32 Total Commercial Check Demands:4,526,710.30$ The following Electronic Funds Transfer (EFT) registers presented for approval: 13 Packet Pg. 133 7026 Page 2 December 04, 2020 to December 10, 2020 2020/21 (Register #1010-1014)579,775.80$ December 11, 2020 2020/21 (Register #1015)3,000.00 December 23, 2020 to December 30, 2020 2020/21 (Register #1016-1022)2,039,617.36 Total Commercial EFT Demands:2,622,393.16$ 2020-2025 Key Strategic Targets and Goals Approval of the noted check and EFT registers for commercial and payroll disbursements align with Key Target No. 1: Financial Stability by creating a framework for spending decisions. Fiscal Impact Amounts noted in the disbursement registers have no further fiscal impact. Amounts were paid consistent with existing budget authorization and no further budgetary impact is required. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino approve the commercial and payroll disbursements for December 2020. Attachments Attachment 1 Payroll Summary Report for December 2020 Attachment 2 Commercial checks & Payroll Register #25 Attachment 3 Commercial checks & Payroll Register #26 Attachment 4 Commercial EFT Registers #1010-1014 Attachment 5 Commercial EFT Registers #1015 Attachment 6 Commercial EFT Registers #1016-1022 Ward: All Synopsis of Previous Council Actions: N/A 13 Packet Pg. 134 13.a Packet Pg. 135 Attachment: Attachment 1 - Payroll Summary Report-December 2020. Attachment 1 (7026 : Approval of Commercial and Payroll 13.a Packet Pg. 136 Attachment: Attachment 1 - Payroll Summary Report-December 2020. Attachment 1 (7026 : Approval of Commercial and Payroll 13.a Packet Pg. 137 Attachment: Attachment 1 - Payroll Summary Report-December 2020. Attachment 1 (7026 : Approval of Commercial and Payroll 13.b Packet Pg. 138 Attachment: Attachment 2 - Commercial Checks & Payroll. Attachment 2. Register #25 (7026 : Approval 13.b Packet Pg. 139 Attachment: Attachment 2 - Commercial Checks & Payroll. Attachment 2. Register #25 (7026 : Approval 13.b Packet Pg. 140 Attachment: Attachment 2 - Commercial Checks & Payroll. Attachment 2. Register #25 (7026 : Approval 13.b Packet Pg. 141 Attachment: Attachment 2 - Commercial Checks & Payroll. Attachment 2. Register #25 (7026 : Approval 13.b Packet Pg. 142 Attachment: Attachment 2 - Commercial Checks & Payroll. Attachment 2. Register #25 (7026 : Approval 13.b Packet Pg. 143 Attachment: Attachment 2 - Commercial Checks & Payroll. Attachment 2. Register #25 (7026 : Approval 13.b Packet Pg. 144 Attachment: Attachment 2 - Commercial Checks & Payroll. Attachment 2. Register #25 (7026 : Approval 13.b Packet Pg. 145 Attachment: Attachment 2 - Commercial Checks & Payroll. Attachment 2. Register #25 (7026 : Approval 13.b Packet Pg. 146 Attachment: Attachment 2 - Commercial Checks & Payroll. Attachment 2. Register #25 (7026 : Approval 13.b Packet Pg. 147 Attachment: Attachment 2 - Commercial Checks & Payroll. Attachment 2. Register #25 (7026 : Approval 13.b Packet Pg. 148 Attachment: Attachment 2 - Commercial Checks & Payroll. Attachment 2. Register #25 (7026 : Approval 13.b Packet Pg. 149 Attachment: Attachment 2 - Commercial Checks & Payroll. Attachment 2. Register #25 (7026 : Approval 13.b Packet Pg. 150 Attachment: Attachment 2 - Commercial Checks & Payroll. Attachment 2. Register #25 (7026 : Approval 13.b Packet Pg. 151 Attachment: Attachment 2 - Commercial Checks & Payroll. Attachment 2. Register #25 (7026 : Approval 13.b Packet Pg. 152 Attachment: Attachment 2 - Commercial Checks & Payroll. Attachment 2. Register #25 (7026 : Approval 13.c Packet Pg. 153 Attachment: Attachment 3 - Commercial Checks & Payroll. Attachment 3. Register #26 (7026 : Approval of 13.c Packet Pg. 154 Attachment: Attachment 3 - Commercial Checks & Payroll. Attachment 3. Register #26 (7026 : Approval of 13.c Packet Pg. 155 Attachment: Attachment 3 - Commercial Checks & Payroll. Attachment 3. Register #26 (7026 : Approval of 13.c Packet Pg. 156 Attachment: Attachment 3 - Commercial Checks & Payroll. Attachment 3. Register #26 (7026 : Approval of 13.c Packet Pg. 157 Attachment: Attachment 3 - Commercial Checks & Payroll. Attachment 3. Register #26 (7026 : Approval of 13.c Packet Pg. 158 Attachment: Attachment 3 - Commercial Checks & Payroll. Attachment 3. Register #26 (7026 : Approval of 13.c Packet Pg. 159 Attachment: Attachment 3 - Commercial Checks & Payroll. Attachment 3. Register #26 (7026 : Approval of 13.c Packet Pg. 160 Attachment: Attachment 3 - Commercial Checks & Payroll. Attachment 3. Register #26 (7026 : Approval of 13.c Packet Pg. 161 Attachment: Attachment 3 - Commercial Checks & Payroll. Attachment 3. Register #26 (7026 : Approval of 13.c Packet Pg. 162 Attachment: Attachment 3 - Commercial Checks & Payroll. Attachment 3. Register #26 (7026 : Approval of 13.c Packet Pg. 163 Attachment: Attachment 3 - Commercial Checks & Payroll. Attachment 3. Register #26 (7026 : Approval of 13.c Packet Pg. 164 Attachment: Attachment 3 - Commercial Checks & Payroll. Attachment 3. Register #26 (7026 : Approval of 13.c Packet Pg. 165 Attachment: Attachment 3 - Commercial Checks & Payroll. Attachment 3. Register #26 (7026 : Approval of 13.c Packet Pg. 166 Attachment: Attachment 3 - Commercial Checks & Payroll. Attachment 3. Register #26 (7026 : Approval of 13.c Packet Pg. 167 Attachment: Attachment 3 - Commercial Checks & Payroll. Attachment 3. Register #26 (7026 : Approval of 13.c Packet Pg. 168 Attachment: Attachment 3 - Commercial Checks & Payroll. Attachment 3. Register #26 (7026 : Approval of 13.c Packet Pg. 169 Attachment: Attachment 3 - Commercial Checks & Payroll. Attachment 3. Register #26 (7026 : Approval of 13.c Packet Pg. 170 Attachment: Attachment 3 - Commercial Checks & Payroll. Attachment 3. Register #26 (7026 : Approval of 13.c Packet Pg. 171 Attachment: Attachment 3 - Commercial Checks & Payroll. Attachment 3. Register #26 (7026 : Approval of 13.c Packet Pg. 172 Attachment: Attachment 3 - Commercial Checks & Payroll. Attachment 3. Register #26 (7026 : Approval of 13.c Packet Pg. 173 Attachment: Attachment 3 - Commercial Checks & Payroll. Attachment 3. Register #26 (7026 : Approval of 13.c Packet Pg. 174 Attachment: Attachment 3 - Commercial Checks & Payroll. Attachment 3. Register #26 (7026 : Approval of 13.c Packet Pg. 175 Attachment: Attachment 3 - Commercial Checks & Payroll. Attachment 3. Register #26 (7026 : Approval of 13.c Packet Pg. 176 Attachment: Attachment 3 - Commercial Checks & Payroll. Attachment 3. Register #26 (7026 : Approval of 13.c Packet Pg. 177 Attachment: Attachment 3 - Commercial Checks & Payroll. Attachment 3. Register #26 (7026 : Approval of 13.c Packet Pg. 178 Attachment: Attachment 3 - Commercial Checks & Payroll. Attachment 3. Register #26 (7026 : Approval of 13.c Packet Pg. 179 Attachment: Attachment 3 - Commercial Checks & Payroll. Attachment 3. Register #26 (7026 : Approval of 13.c Packet Pg. 180 Attachment: Attachment 3 - Commercial Checks & Payroll. Attachment 3. Register #26 (7026 : Approval of 13.d Packet Pg. 181 Attachment: Attachment 4 - EFT Register #1010-1014. Attachment 4 (7026 : Approval of Commercial and 13.d Packet Pg. 182 Attachment: Attachment 4 - EFT Register #1010-1014. Attachment 4 (7026 : Approval of Commercial and 13.e Packet Pg. 183 Attachment: Attachment 5 - EFT Register #1015. Attachment 5 (7026 : Approval of Commercial and 13.e Packet Pg. 184 Attachment: Attachment 5 - EFT Register #1015. Attachment 5 (7026 : Approval of Commercial and 13.f Packet Pg. 185 Attachment: Attachment 6 - EFT Register #1016-1022. Attachment 6 (7026 : Approval of Commercial and 13.f Packet Pg. 186 Attachment: Attachment 6 - EFT Register #1016-1022. Attachment 6 (7026 : Approval of Commercial and Page 1 Consent Calendar City of San Bernardino Request for Council Action Date: January 20, 2021 To: Honorable Mayor and City Council Members From: Robert D. Field, City Manager By: Jim Slobojan, Acting Finance Director Subject: Audited Financial Statements for Fiscal Year 2019/20 (All Wards) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, receive and file the audited Comprehensive Annual Financial Report (CAFR) for Fiscal Year 2019/20. Background Pursuant to California law, the City is required to complete an annual audit of its financial records by an independent audit firm by March 31 st of each year. The City contracted with Rogers, Anderson, Malody, & Scott, LLP (RAMS) to perf orm this function for the year ended June 30, 2020. The Comprehensive Annual Financial Report (CAFR) attached to this report includes the final audited financial statements and audit results. The 2019/20 CAFR contains important financial information perta ining to all aspects of the City’s finances and all City funds, including: the General Fund, Special Revenue Funds, Capital Project Funds, Internal Service Funds, and Enterprise Funds (the Water, Sewer Treatment, and Sewer Collection Funds). Financial info rmation is conveyed both by major fund type and in a comprehensive aggregated manner; thus, the information is somewhat complex to interpret. Because of this, specific detailed information regarding the General Fund year-end budget results for fiscal year 2019/20 was presented separately at the November 18, 2020, Mayor and City Council meeting. The highlights of the CAFR and audit results are discussed in further detail below. The Notes to the Basic Financial Statements (pages 41 -112 of the CAFR) also provide detailed information regarding the City’s accounting methods and the amounts reported in the financial statements. Discussion The CAFR contains three sections: 1. Introductory Section 2. Financial Section 14 Packet Pg. 187 7027 Page 2 a. Independent Auditor’s Report b. Management’s Discussion and Analysis c. Basic Financial Statements and Notes to the Basic Financial Statements d. Required Supplementary Information e. Combining Financial Statements and Schedules 3. Statistical Section As the Financial Section comprises the majority of the report, each subsection is detailed below: a.) Independent Auditor’s Report For FY 2019/20, all of the City's funds received an Unmodified ("clean") opinion, which is the most desirable outcome. An unmodified opinion implies two things: 1) the auditors were able to perform all the required tests of the accounts; and 2) the financial statements present fairly, in all material respects, the financial position of the City’s opinion units. b.) Management’s Discussion and Analysis This section provides a narrative overview and analysis of the basic financial statements and its components. Management’s Discussion and Analysis also discusses financial highlights for the year ended June 30, 2020 for all major funds, General Fund budgetary highlights, and summarized information on capital assets and long-term debt. c.) Basic Financial Statements Within the Basic Financial Statements, there are three sections: Government -wide Financial Statements, Fund Financial Statements, and Notes to the Basic Financial Statements. Government-wide financial statements are comprehensive in scope, meaning all assets (including capital assets and infrastructure) and all liabilities (including outstanding long- term debt and the City’s CalPERS pension liability) are presented for all funds. Additionally, the government-wide statements include the assets and liabilities of the San Bernardino Municipal Water Department as the government-wide business-type activities. The government-wide statements have a long-term focus, recognizing transactions and events as soon as they occur, even if related cash flows will not take place well into the future. The purpose of the government-wide statements is to assess whether the City is meeting its operating objectives effectively and will be able to continue to do so for the foreseeable future. The government-wide financial statements analyze the City’s “net position.” Net position is the difference between the City’s assets and liabilities. Over time, increases or decreases in net position may serve as a useful indicator of whether the City’s financial position is improving or deteriorating. Below is a summary of the changes in net position 14 Packet Pg. 188 7027 Page 3 for governmental and business-type activities: 2020 2019 2020 2019 2020 2019 Total Revenues 171,006,354 166,486,706 89,205,488 93,836,085 260,211,842 260,322,791 Total Expenditures 199,747,087 188,161,079 77,101,492 72,726,067 276,848,579 260,887,146 Capital contributions and transfers - - - (8,375,074) - (8,375,074) Change in Net Position (28,740,733) (21,674,373) 12,103,996 12,734,944 (16,636,737) (8,939,429) Net Position - beginning 78,051,465 99,725,838 296,237,839 283,502,895 374,289,304 383,228,733 Net Position - ending 49,310,732$ 78,051,465$ 308,341,835$ 296,237,839$ 357,652,567$ 374,289,304$ Activities Activities Total Governmental Business-Type Revenues related to the City’s governmental activities totaled $171.01 million for the fiscal year ended June 30, 2020, an increase of $4.52 million, or 3 percent, from the prior year. The primary causes for the overall increase were: Charges for services revenue, which increased $2.73 million, or 13 percent, from the prior year due to increased development impact fees and other charges associated with development in FY 2019/20. Property tax revenue, which increased $1.71 million, or 10 percent, from the prior year due to increased revenues from property taxes in lieu of VLF resulting from growth in gross assessed valuation within the City. Sales tax revenue decreased $1.27 million, or 3 percent, and transient occupancy tax revenue decreased $0.42 million, or 3 percent, from the prio r year due to decreased consumer and travel activity as a result of the COVID -19 pandemic. Franchise tax revenue, which increased $1.13 million, or 10 percent, from the prior year due to increased activity and rate increases from the City’s waste management contractor. Other revenues, which increased by $1.34 million, or 45 percent, from the prior year primarily due to a $1.5 million donation to the City for Park improvements. Expenses related to the City’s governmental activities totaled $199.75 mi llion for the fiscal year ended June 30, 2020, an increase of $11.59 million, or 6 percent, from the prior year. The primary causes for the overall increase were: Expenses related to public safety and streets (public works) increased $8.02 million, or 8 percent, and $1.63 million, or 4 percent, respectively, from the prior year primarily due to changes in the City’s CalPERS net pension liability. Culture and recreation expenses, which increased $2.08 million, or 56 percent, from the prior year due to spending for capital projects for playground equipment replacement and improvements to the Jerry Lewis Family Swim Center. 14 Packet Pg. 189 7027 Page 4 Business-type activities refer to the Water, Sewer Treatment, Sewer Collection, and Integrated Waste Funds. Revenues related to those activities totaled $89.21 million for the fiscal year ended June 30, 2020, a decrease of $4.63 million, or 5 percent, from the prior year. The primary causes for the overall decrease were: Revenue related to charges for services, which increased $1.12 million from the prior year despite no rate increases or substantial growth in utility accounts throughout the fiscal year. Capital grants and contributions, which decreased $5.52 million from the prior year due primarily to a large capital contribution of land of approximately $5.6 million to the Sewer Treatment Fund that occurred in fiscal year 2019. Capital Assets Capital assets, including the infrastructure of the City, are those assets that are used in the performance of the City’s functions. At June 30, 2020, capital assets totaled $289.97 million for governmental activities and $291.99 million for business -type activities, net of accumulated depreciation. The City’s capital assets include land and easements, infrastructure, buildings and improvements, machinery, vehicles, and equipment, water rights, wells, and pumping equipment, distribution and collection systems, and construction in progress. The net increase over the prior fiscal year in the City’s capital assets was $0.14 million, or less than 1 percent. 2020 2019 2020 2019 2020 2019 Land and easements 103,761,234$ 103,334,621$ 23,213,972$ 23,213,972$ 126,975,206$ 126,548,593$ Construction in progress 16,802,897 15,126,024 20,670,762 7,907,281 37,473,659 23,033,305 Infrastructure 151,004,275 158,760,870 - - 151,004,275 158,760,870 Buildings and improvements 13,616,716 12,724,496 - - 13,616,716 12,724,496 Machinery, vehicles, and equipment 4,437,134 5,423,981 - - 4,437,134 5,423,981 Purchased software 346,867 941,500 - - 346,867 941,500 Water rights, wells, and pumping - - 58,704,740 60,494,000 58,704,740 60,494,000 Distribution and collection systems - - 117,042,172 120,238,521 117,042,172 120,238,521 Building, plant, and store yards - - 46,848,446 51,092,379 46,848,446 51,092,379 Other capital assets - - 25,507,096 22,559,624 25,507,096 22,559,624 Total Capital Assets, net 289,969,123$ 296,311,492$ 291,987,188$ 285,505,777$ 581,956,311$ 581,817,269$ Governmental Business-Type Activities Activities Total Major capital asset transactions during the current fiscal year included the following: Infrastructure additions were $4.40 million. Street additions accounted for $2.03 million, traffic control additions totaled $1.72 million, and sto rm drain additions were $0.65 million. Completed CIP projects for buildings and improvements in the City’s governmental activities totaled $2.42 million, consisting primarily of park improvements and renovations. In the City’s business -type activities, completed CIP projects totaled $4.91 million for various projects in the Water and Sewer Treatment Funds. Long-Term Liabilities 14 Packet Pg. 190 7027 Page 5 As of June 30, 2020, the City had $607.80 million in long-term liabilities outstanding: 2020 2019 2020 2019 2020 2019 Notes payable 24,666,171$ 26,649,629$ -$ 300,000$ 24,666,171$ 26,949,629$ Bonds payable - - 83,813,621 85,482,663 83,813,621 85,482,663 Lease revenue bonds 2,751,781 3,598,360 - - 2,751,781 3,598,360 California Infrastructure and Economic Development Bank 274,558 406,234 - - 274,558 406,234 Claims payable 31,783,611 28,330,736 1,778,391 2,689,932 33,562,002 31,020,668 CalPERS pension liability 382,853,267 358,483,820 60,531,689 56,856,346 443,384,956 415,340,166 OPEB liability - - 13,557,801 14,377,581 13,557,801 14,377,581 Landfill closure liability 5,793,586 6,150,136 - - 5,793,586 6,150,136 Total Long-Term Liabilities 448,122,974$ 423,618,915$ 159,681,502$ 159,706,522$ 607,804,476$ 583,325,437$ Governmental Business-Type Activities Activities Total The City’s notes and bonds payable decreased by a total of $4.93 million from the prior year, attributable to the City’s annual debt service payments. The City’s general liability and workers’ compensation claim liabilities increased by $2.54 million from the prior year due to an increas e in both the absolute number and dollar amount of claims incurred during the year. The City’s CalPERS pension liability increased by $28.04 million from the prior year due primarily to interest incurred on the total pension liability plans and differ ences between the expected and actual investment performance. In FY 2019/20, the City’s required payment toward the unfunded accrued liability (UAL) was $28.02 million. Fund financial statements are narrower in scope than the government-wide financial statements. A fund is a grouping of related accounts used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All City funds can be divided into three categories: Governmental funds, which are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements, however, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources. This information is useful in evaluating a government’s near-term financing requirements. Proprietary funds, which are used to report the business-type activities of the Water Fund, Sewer Fund, Sewer Collection Fund, the Integrated Waste Fund, and the City’s Internal Service Funds. Fiduciary funds, which account for resources held for the benefit of parties outside the government. Fiduciary funds are not included in the government -wide financial statement because the resources of those funds are not available to support the City’s programs. 14 Packet Pg. 191 7027 Page 6 The summary analysis for this report will focus on the Governmental funds, which experienced an increase in total fund balance of $4,757,181 over the previous year as shown below: Federal and Other Total General State Grants Governmental Governmental Fund Fund Funds Funds Total Revenues 134,390,882 9,408,425 26,571,403 170,370,710 Total Expenditures 131,184,413 9,880,249 24,640,896 165,705,558 Excess (Deficiency) of Revenues Over (Under) Expenditures 3,206,469 (471,824) 1,930,507 4,665,152 Net transfers (118,755) - 118,755 - Sale of capital assets 92,029 - - 92,029 Net Change in Fund Balances 3,179,743$ (471,824)$ 2,049,262$ 4,757,181$ In the fund financial statements, governmental fund balance is made up of the following components: Nonspendable Fund Balance includes amounts that cannot be spent because they are either not spendable in physical form (such as inventory or property held for resale) or that are legally or contractually required to be maintained intact (such as endowments). Restricted Fund Balance includes amounts that can be spent only for specific purposes imposed by creditors, grantors, contributors, or laws or regulations of other governments or through enabling legislations. Restricted fund balance also includes gifts designated by donors for specific purposes, such as the $1.5 million donation for Parks the City received in FY 2019/20. Committed Fund Balance includes amounts that can only be used for specific purposes due to formal action of the City Council through adoption of a resolution prior to the end of the fiscal year. Once adopted, the limitation imposed by resolution remains in place until a similar action is taken (the adoption of another resolution) to remove or revise the limitation. The City Council previou sly approved the General Fund Reserve Policy, setting a 15% minimum in the Emergency Reserve and 10% in the Economic Contingency Reserve. The Emergency Reserve was established for the purpose of addressing any extremely unusual and infrequent occurrences, such as a major natural disaster or a major unforeseen settlement or judgment. Utilization of the Emergency Reserve may only occur after the declaration of an emergency by a majority of the City Council. The Economic Contingency Reserve was established for the purpose of providing a mechanism to allow for a measured and thoughtful reduction in expenditures during times of economic downturn. Utilization of the Economic Contingency Reserve requires approval by a majority of the City Council. The reserves committed at June 30, 2020 were calculated utilizing the FY 2019/20 adopted General Fund expenditure budget of $126,827,000. 14 Packet Pg. 192 7027 Page 7 Assigned Fund Balance includes amounts that are constrained by intent to be used for a specific purpose but are neither restricted nor committed. Through the City Council’s adoption of the budget and subsequent budget adjustments throughout the year, the City assigns the specific purpose of the funding, for example the budget carryovers from FY 2019/20 to FY 2020/21. Unassigned Fund Balance is the residual classification that includes all spendable amounts in the General Fund not contained in other classifications. The fund balances of the General Fund at June 30, 2020 are shown on the following page: The Notes to the Financial Statements provide over 70 pages of information on subjects including accounting policies, long term debt and liabilities, investments, capital assets, pension obligations, and other items essential to obtaining a full understanding of the data provided in the financial statements. d.) Required Supplementary Information (RSI) This section contains budgetary information for the General Fund and Federal and State Grants Fund, schedules related to changes in the City’s net pension liability and OPEB liability, and schedules of pension and OPEB contributions. e.) Combining Financial Statements and Schedules This section contains financial reports regarding the Non -Major Governmental Funds, Internal Service Funds, and the Fiduciary Funds, as well as budget to actual 14 Packet Pg. 193 7027 Page 8 comparisons for all other governmental funds with an adopted budget for FY 2019/20. 2020-2025 Key Strategic Targets and Goals Providing the Mayor and City Council with the independently audited CAFR aligns with Goal No. 1: Financial Stability. The information included in the reports is useful to the Mayor and City Council in making decisions about the allocation of City resources to meet its goals and objectives. Fiscal Impact There is no fiscal impact from this action. The report is inten ded to provide information to assist the Mayor and City Council as they make financial decisions and assess the financial condition of the City. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California, receive and file the audited Comprehensive Annual Financial Report (CAFR) for Fiscal Year 2019/20. Attachments Attachment 1 2020 Comprehensive Annual Financial Report Attachment 2 PowerPoint Presentation Ward: All Synopsis of Previous Council Actions: N/A 14 Packet Pg. 194 COMPREHENSIVE ANNUAL FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2020 City of San Bernardino, California 290 N. “D” Street San Bernardino, CA www.SBCity.org 14.a Packet Pg. 195 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements 14.a Packet Pg. 196 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Comprehensive Annual Financial Report For the Fiscal Year Ended June 30, 2020 Prepared by the City of San Bernardino Finance Department San Bernardino, California 14.a Packet Pg. 197 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements 14.a Packet Pg. 198 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Comprehensive Annual Financial Report For the Fiscal Year Ended June 30, 2020 Table of Contents INTRODUCTORY SECTION Page Letter of Transmittal .......................................................................................................................................... i Mayor and City Council ................................................................................................................................... vi City Officials ..................................................................................................................................................... vii Organizational Chart ...................................................................................................................................... viii FINANCIAL SECTION Independent Auditor’s Report ......................................................................................................................... 1 Management’s Discussion and Analysis ......................................................................................................... 4 Basic Financial Statements: Government-Wide Financial Statements: Statement of Net Position ................................................................................................... 21 Statement of Activities ......................................................................................................... 23 Fund Financial Statements Balance Sheet – Governmental Funds .............................................................................. 25 Reconciliation of the Governmental Funds Balance Sheet to the Statement of New Position ............................................................................................... 26 Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds ........................................................................... 27 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities ................................................................................................ 28 Statement of Net Position – Proprietary Funds .............................................................. 29 Statement of Revenues, Expenses, and Changes in Net Position – Proprietary Funds ............................................................... 33 Statement of Cash Flows – Proprietary Funds ................................................................ 35 Statement of Fiduciary Net Position – Fiduciary Funds ................................................ 39 Statement of Changes in Fiduciary Net Position – Fiduciary Funds ............................ 40 Notes to the Basic Financial Statements .................................................................................. 41 Required Supplementary Information (Unaudited): Budgetary Information .................................................................................................................... 113 Budgetary Comparison Schedules: General Fund ...................................................................................................................... 114 Federal and State Grants Special Revenue Fund ........................................................... 116 Schedule of Changes in the Net Pension Liability and Related Ratios .................................... 118 Schedule of the Successor Agency’s Proportionate Share of the Net Pension Liability and Related Ratios........................................................................ 120 14.a Packet Pg. 199 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Comprehensive Annual Financial Report For the Fiscal Year Ended June 30, 2020 Table of Contents (Continued) FINANCIAL SECTION (Continued) Required Supplementary Information (Unaudited) (Continued): Schedule of Contributions – Pension ............................................................................................ 121 Schedule of Changes in Net OPEB Liability and Related Ratios ............................................. 124 Schedule of Contributions – OPEB .............................................................................................. 125 Combining Financial Statements and Schedules: Combining Balance Sheet – Non-Major Governmental Funds ................................................ 129 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – Non-Major Governmental Funds ................................................................. 134 Schedules of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual: Cable TV Special Revenue Fund ...................................................................................... 139 Asset Seizure Special Revenue Fund ............................................................................... 140 Low and Moderate Income Housing Special Revenue Fund ...................................... 141 Alternative Transportation Special Revenue Fund ........................................................ 142 RMRA Gas Tax Special Revenue Fund .......................................................................... 143 Special Gas Tax Special Revenue Fund ........................................................................... 144 Traffic Safety Special Revenue Fund ............................................................................... 145 Measure I Special Revenue Fund ..................................................................................... 146 Verdemont Capital Projects Fund .................................................................................... 147 Storm Drain Construction Capital Projects Fund ......................................................... 148 Special Assessments Capital Projects Fund .................................................................... 149 Cultural Development Construction Fee Capital Projects Fund................................. 150 Impact Fees Capital Projects Fund .................................................................................. 151 Combining Statement of Net Position – Internal Service Funds ............................................. 153 Combining Statement of Revenues, Expenses, and Changes in Net Position – Internal Service Funds ........................................................... 154 Combining Statement of Cash Flows – Internal Service Funds ............................................... 155 Combining Statement of Fiduciary Assets and Liabilities – Agency Funds ............................ 158 Combining Statement of Changes in Fiduciary Assets and Liabilities – Agency Funds ....... 160 STATISTICAL SECTION (Unaudited) Description of Statistical Section Contents ................................................................................................ 162 Financial Trends Schedules Net Position by Component .......................................................................................................... 163 Changes in Net Position .................................................................................................................. 165 Fund Balances of Governmental Funds ....................................................................................... 169 Changes in Fund Balances of Governmental Funds .................................................................. 171 Tax Revenues by Source – Governmental Funds ....................................................................... 173 14.a Packet Pg. 200 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Comprehensive Annual Financial Report For the Fiscal Year Ended June 30, 2020 Table of Contents (Continued) STATISTICAL SECTION (Unaudited) (Continued) Revenue Capacity Schedules Assessed Valuation and Estimated Actual Value of Property ................................................... 174 Taxable Sales by Category ............................................................................................................... 175 Principal Sales Tax Remitters ......................................................................................................... 177 Direct and Overlapping Property Tax Rates ................................................................................ 178 Principal Property Taxpayers .......................................................................................................... 179 Property Tax Levies and Collections ............................................................................................. 180 Top 10 Customers – Water, Sewer Treatment, and Sewer Collection ..................................... 181 Connections and Revenues by User Type – Water ..................................................................... 182 Water Rate History – Minimum Monthly Charge ....................................................................... 183 Connections and Revenues by User Type – Sewer Treatment ................................................. 184 Sewer Treatment Rate History ....................................................................................................... 185 Connections and Revenues by User Type – Sewer Collection .................................................. 186 Sewer Collection Rate History........................................................................................................ 187 Debt Capacity Schedules Ratio of Outstanding Debt by Type .............................................................................................. 188 Ratio of General Bonded Debt Outstanding ............................................................................... 190 Schedule of Direct and Overlapping Debt ................................................................................... 191 Legal Debt Margin ........................................................................................................................... 192 Debt Service Coverage .................................................................................................................... 194 Demographic and Economic Information Demographic and Economic Statistics ......................................................................................... 195 Principal Employers ......................................................................................................................... 196 Budgeted Full-Time and Part-Time Positions by Function ....................................................... 197 Operating Information Capital Asset Statistics ..................................................................................................................... 198 Operating Indicators by Function ................................................................................................. 199 14.a Packet Pg. 201 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements 14.a Packet Pg. 202 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements INTRODUCTORY SECTION  Letter of Transmittal  Mayor and City Council  City Officials  Organizational Chart 14.a Packet Pg. 203 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements 14.a Packet Pg. 204 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements 290 North D St, San Bernardino, CA 92401 | P: 909-384-5242 | F: 909-384-5043| www.SBCity.org i November 30, 2020 To the Honorable Mayor, Members of the City Council and Citizens of the City of San Bernardino: We are pleased to submit the Comprehensive Annual Financial Report (CAFR) of the City of San Bernardino (the City) for the fiscal year ended June 30, 2020. This report is published in accordance with local ordinance and state law requirements that financial statements be presented in conformity with generally accepted accounting principles (GAAP) and audited in accordance with generally accepted auditing standards by an independent public accounting firm of licensed certified public accountants. This report contains management’s representations concerning the City’s finances. Management assumes full responsibility for the completeness and reliability of all of the information presented and that it is reported in a manner that fairly presents the financial position and operations of the various funds and component units of the City. To provide a reasonable basis for making these representations, and assurance that the financial statements will be free from material misstatement, City management has established a comprehensive internal control framework designed both to protect its assets and to compile sufficient reliable information to prepare the City’s financial statements in conformity with accounting principles generally accepted in the United States of America. Because the cost of internal controls should not outweigh its benefits, internal controls have been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatements. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects. Rogers, Anderson, Malody, & Scott, LLP, a firm of licensed certified public accountants, has audited the City’s financial statements. The goal of the independent audit was to provide reasonable assurance the City’s financial statements for the fiscal year ended June 30, 2020 are free of material misstatement. The independent auditor concluded it was reasonable to render an unmodified opinion and that the City’s financial statements for the fiscal year ended June 30, 2020, are fairly presented in conformity with GAAP. The independent auditor’s report is presented as the first component of the financial section of this report. Management’s discussion and analysis (MD&A) immediately follows the independent auditor’s report and provides a narrative overview and analysis of the basic financial statements. This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. 14.a Packet Pg. 205 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements 290 North D St, San Bernardino, CA 92401 | P: 909-384-7272 | www.SBCity.org | @SBCityGov ii Profile of the Government The City of San Bernardino, incorporated as a Charter City in 1854, is located in Southern California, approximately 60 miles east of Los Angeles and 55 miles west of Palm Springs. The City has a land area of approximately 59.3 square miles and population of over 213,000. The City is the County Seat of San Bernardino County, the largest county in the nation. Along with adjacent Riverside County, these two counties comprise what is called the “Inland Empire”, so-named because it formerly was a vast agriculture domain (primarily citrus). This area is immediately east of the Los Angeles/Orange County metropolitan area. The City operates under a Council-Manager form of government. Under this governance plan, the elected Mayor and City Council appoints a full-time professional City Manager responsible for the day- to-day administration of City government. The Mayor and City Council represent the legislative branch of the government and are responsible for setting City policy and allocating resources. The City Manager and staff represent the executive branch of the government and are tasked with recommending policy and implementing the Mayor and City Council’s direction. Each City department, office, and agency is administered by an executive appointed by and subject to the direction and supervision of the City Manager, except the Offices of the Council, Mayor, City Attorney and City Clerk, the Library Board of Trustees, and the Water Board, which are administered by their respective executive officers. The City Attorney, City Clerk, and City Manager work directly for the entire City Council and receive direction only from the full body, acting by majority vote, conducted at a publicly noticed meeting. The City provides a broad range of services, including public safety, water and sewer, infrastructure and highway maintenance, recreational activities, and cultural events. The City contracts with the San Bernardino County Fire Protection District for fire protection and emergency medical aid services. The City is financially accountable for the San Bernardino Municipal Water Department, Affordable Housing Solutions of San Bernardino, Inc., the San Bernardino Joint Powers Financing Authority, and the Successor Agency, which was formed to hold the assets of the former Economic Development Agency. Therefore, these entities are reported within the City’s financial statements. Additional information regarding these legally separate entities can be found in Note 1 in the notes to the financial statements. The annual budget serves as the foundation for the City’s financial planning and control. Per the City’s Municipal Code, the City Manager is required to prepare and submit the proposed budget to the Mayor and City Council at least sixty days prior to the beginning of each fiscal year. The accompanying budget message from the City Manager details the budget in both fiscal terms and describes how the proposed budget relates to the City’s work programs, organizational goals, and community priorities. The legal level of budgetary control for all governmental funds types is personnel-related expenditures (i.e. personnel salaries and benefits) versus other expenditures within each department. Budget-to-actual comparisons are provided in this report for each individual governmental fund for which an appropriated annual budget has been adopted. For the general fund and major governmental funds, this comparison is presented as part of the required supplementary information in the accompanying financial statements. For governmental funds other than the general fund with appropriated annual budgets, this comparison is presented in the supplementary section of the accompanying financial statements. 14.a Packet Pg. 206 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements 290 North D St, San Bernardino, CA 92401 | P: 909-384-7272 | www.SBCity.org | @SBCityGov iii Economic Condition The information presented in the financial statements is perhaps best understood when it is considered from the broader perspective of the specific environment within which the City operates. Local economy: Like other jurisdictions throughout the country, the City’s economy was significantly impacted by the COVID-19 pandemic. After nearly a decade of economic growth and expansion, state and local stay-at-home orders resulted in a significant decrease in spending on certain goods and services. Many businesses temporarily suspended operations or were forced to close permanently, leading a sharp increase in the City’s unemployment rate from 4.8% in February 2020 to 16.4% in June 2020. Nevertheless, while certain sectors of the economy such as travel and food service experienced significant declines, other sectors such as technology, healthcare, groceries, and household staples proved to be more resilient than initially expected. Further, the infusion of cash into the economy from increased unemployment benefits and other federal relief programs mitigated much of the reduction and has led to a faster recovery than what was originally anticipated. As the City continues to recover from and respond to the pandemic, it remains focused on providing services and programs to the community in a safe, healthy, and cost-efficient manner. Despite the COVID-19 pandemic, home price growth of single-family properties in the community remained steady. From June 30, 2019 to June 30, 2020, the median home price increased 7.6% to a median home value of $305,000. Development activities in the City continue to be robust and active as developers see the advantage of developing in this centralized location in the Inland Empire. Development on and around the San Bernardino International Airport (SBIA) continues to grow as a major logistics hub in Southern California. There has been over 15 million square feet of distribution, logistics and fulfillment centers constructed around SBIA over the last decade and an additional 3.3 million square feet are either under construction or are planned for development in this area of the City. Some of the major landowners and tenants in this area include Amazon.com, Stater Bros. Markets, Kohl’s, Trader Joe’s, Mattel and PepBoys. The residential development market in the community has also begun to pick up. There are 300 new single-family homes planned for development in the Verdemont neighborhood in the northern portion of the City. There is also a master-planned community approved along Interstate 10 that includes an additional 95 single-family homes. Lastly, there are two market rate apartment projects approved and under development in the southern portion of the City totaling 160 units. These market rate units will assist with the housing demand around Loma Linda Hospital campus. 14.a Packet Pg. 207 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements 290 North D St, San Bernardino, CA 92401 | P: 909-384-7272 | www.SBCity.org | @SBCityGov iv Long-term Financial Planning: On January 15, 2020, the Mayor and City Council adopted Resolution 2020-5, establishing the key strategic targets and goals for 2020-2025. Through various strategic planning workshops, the Mayor and City Council identified the following four strategic priorities and goals for the City: 1. Financial Stability a. Secure a long-term revenue source b. Implement, maintain, and update a fiscal accountability plan c. Create a framework for spending decisions d. Minimize risk and litigation exposure e. Create an asset management plan 2. Focused, Aligned Leadership and Unified Community a. Develop and implement a community engagement plan b. Build a culture that attracts, retains, and motivates the highest quality talent 3. Improved Quality of Life a. Reduce the burden of homelessness through engagement, collaboration, and alignment with other entities b. Develop a customer service initiative c. Constantly evaluate public safety service delivery models to enhance the quality of service 4. Economic Growth and Development a. Develop a branding and marketing campaign b. Update the General Plan and Development Code c. Roll out a strategy to create a 21st century urban core The adoption of measurable targets and goals establishes direction and priorities which focus on critical actions necessary to achieve the City’s adopted vision, improve resource utilization, reduce redundancy, and allow the City to establish both stability and seek opportunities that meet these objectives. The City also developed a Five-Year Capital Improvement Plan detailing specific capital projects planned for each City department. Each project is consistent with the overall goals and objectives of the City as outlined in the Strategic and General Plans. The current Five-Year Capital Improvement Plan proposed at adoption $28.3 million of capital projects for the Fiscal Year 2019-20 including $17.1 million for Streets, $5.0 million for Landfills, $3.0 million for Traffic Controls, $1.6 million for Storm Drains, and $1.6 million for Park Improvements. Financial Policies: Fiscal policies establish framework for managing the City’s financial resources and safeguarding the City’s asset in compliance with relevant regulatory mandates, industry standards, and best practices. Maintaining healthy reserves in the General Fund as well as other Funds, is a critical component of the City’s sound financial management practices. The City’s General Fund Reserve Policy, adopted by the City Council on November 21, 2016, requires maintaining the General Fund Operating Reserve at 25% of the adopted budget for the fiscal year, consisting of an Emergency Reserve of 15% of the adopted budget and an Economic Contingency Reserve of 10% of the adopted budget. As of June 30, 2020, the General Fund reserve is currently at its required goal of 25%, or $31.7 million. 14.a Packet Pg. 208 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements 14.a Packet Pg. 209 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements MAYOR JOHN VALDIVIA MAYOR& WARD 1 COUNCIL MEMBER THEODORE SANCHEZ WARD 2 COUNCIL MEMBER SANDRA IBARRA WARD 3 COUNCIL MEMBER JUAN FIGUEROA WARD 4 COUNCIL MEMBER FRED SHORETT WARD 5 COUNCIL MEMBER HENRY NICKEL WARD 6 COUNCIL MEMBER BESSINE L. RICHARD WARD 7 COUNCIL MEMBER JAMES L. MULVIHILL CITY COUNCIL CITY OF SAN BERNARDINO 14.a Packet Pg. 210 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements for Fiscal vii CITY OF SAN BERNARDINO, CALIFORNIA CITY OFFICIALS JUNE 30, 2020 LEGISLATIVE OFFICIALS John Valdivia.................................................................................................................................. Mayor* Theodore Sanchez ........................................................................ Member of City Council – Ward 1* Sandra Ibarra ................................................................................. Member of City Council – Ward 2* Juan Figueroa ................................................................................ Member of City Council – Ward 3* Fred Shorett .................................................................................. Member of City Council – Ward 4* Henry Nickel ................................................................................. Member of City Council – Ward 5* Bessine L. Richard ........................................................................ Member of City Council – Ward 6* James L. Mulvihill ........................................................................ Member of City Council – Ward 7* CHIEF ADMINISTRATIVE OFFICERS Teri Ledoux .......................................................................................................................... City Manager Miguel J. Guerrero .................... General Manager, San Bernardino Municipal Water Department DEPARTMENT HEADS Genoveva Rocha .......................................................................................................... Acting City Clerk Sonia R. Carvalho ........................................................................................... Appointed City Attorney Vacant ................................................................................................................................. City Treasurer Michael A. Huntley ...................................... Director of Community and Economic Development Paul Espinoza .......................................................................................................... Director of Finance Edelia Eveland ....................................................................................... Director of Human Resources Mitch Cochran ............................................................................ Director of Information Technology Jim Tickemyer ................................................................................... Director of Parks and Recreation Eric McBride ....................................................................................................... Interim Chief of Police Kristen Jensen ................................................................................................ Director of Public Works Edward Erjavek ............................................................................................................. Library Director *Elected Officials 14.a Packet Pg. 211 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements viii CITY OF SAN BERNARDINO, CALIFORNIA ORGANIZATIONAL CHART JUNE 30, 2020 Citizens of San Bernardino Mayor and City Council City Attorney City Treasurer City Manager City Clerk Community and Economic Development Finance Human Resources Information Technology Parks and Recreation Police Public Works Library 14.a Packet Pg. 212 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements FINANCIAL SECTION  Independent Auditor’s Report  Management’s Discussion and Analysis  Basic Financial Statements  Required Supplementary Information  Combining Financial Statements and Schedules 14.a Packet Pg. 213 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements 14.a Packet Pg. 214 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements   1 Independent Auditor’s Report To the Honorable Mayor and members of the City Council of the City of San Bernardino City of San Bernardino, California Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of San Bernardino (the City), as of and for the year ended June 30, 2020, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements The City’s 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 statement of the Water Enterprise Fund, Sewer Enterprise Fund, and the Sewer Collection Enterprise Fund (major funds), which collectively represent the following percentages of assets, net position, and expenses of the following opinion units: Opinion Unit Assets Net Position Expenses Business-type Activities 92.83% 99.38% 98.07% Major Enterprise Fund: Water Enterprise Fund 100.00% 100.00% 100.00% Sewer Enterprise Fund 100.00% 100.00% 100.00% Sewer Collection Enterprise Fund 100.00% 100.00% 100.00% Those statements were audited by other auditors whose reports have been furnished to us, and our opinions, insofar as they relate to the amounts included for the Water Enterprise Fund, Sewer Enterprise Fund, and the Sewer Collection Enterprise Fund, are based solely on the reports of the other auditors. 14.a Packet Pg. 215 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements To the Honorable Honorable Mayor and members of the City Council of Page 2 the City of San Bernardino City of San Bernardino, California   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 from 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 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, based on our audit and the report of the other auditor’s, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2020, 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. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis, Budgetary Comparison Schedules, Schedules of Changes in Net Pension Liability and Related Ratios, Schedules of the Successor Agency’s Proportionate Share of the Net Pension Liability and Related Ratios, Schedule of Contributions – Pension, Schedule of Changes in Net OPEB Liability and Related Ratios and Schedule of Contributions – OPEB 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 provide any assurance. 14.a Packet Pg. 216 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements To the Honorable Honorable Mayor and members of the City Council of Page 3 the City of San Bernardino City of San Bernardino, California   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, combining and individual non-major fund financial statements and schedules, budgetary comparison information and statistical sections are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual non-major fund financial statements and schedules and budgetary comparison information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the accompanying supplementary information is fairly stated, in all material respects, in relation to the basic financial statements as a whole. 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 it. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated November 30, 2020 on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is 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 internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance. San Bernardino, California November 30, 2020 14.a Packet Pg. 217 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements 14.a Packet Pg. 218 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Management’s Discussion and Analysis For the Fiscal Year Ended June 30, 2020 - 4 - As management of the City of San Bernardino (City), California, we offer readers of the City’s financial statements this narrative overview and analysis of the financial activities of the City for the fiscal year ended June 30, 2020. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal, which can be found in the introductory section of this report, and with the City's financial statements, which follow this discussion. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to the City’s basic financial statements. The City’s basic financial statements consist of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the basic financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. Government-Wide Financial Statements The government-wide financial statements are designed to provide readers with a broad overview of the City’s finances, in a manner similar to a private-sector business. The Statement of Net Position presents information on all of the City’s assets and liabilities, with the difference between the two reported as net position. Over time, changes in the net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. The Statement of Activities presents information illustrating how the government’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave). The government-wide financial statements present information about the functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities). The governmental 14.a Packet Pg. 219 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Management’s Discussion and Analysis For the Fiscal Year Ended June 30, 2020 - 5 - activities of the City include general government, public safety, streets, culture and recreation, community development, and community services. The government-wide financial statements include not only the City itself (known as the primary government), but also three legally separate entities: the San Bernardino Municipal Water Department, Affordable Housing Solutions of San Bernardino, Inc., and the San Bernardino Joint Powers Financing Authority, for which the City is financially accountable. Although legally separate, these entities function for all practical purposes as a department of the City, and therefore has been included as an integral part of the primary government. The government-wide financial statements immediately follow this discussion and analysis. Fund Financial Statements A fund is a grouping of related accounts used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. Governmental Funds Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government's near-term financing decisions. Both the governmental fund Balance Sheet and the governmental fund Statement of Revenues, Expenditures, and Changes in Fund Balances provides a reconciliation to facilitate this comparison between governmental funds and governmental activities. The City maintains various individual governmental funds. Information is presented separately in the Governmental Funds Balance Sheet, and in the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances, for the General Fund and Federal and State Grants Fund, both of which are considered major funds. Data from other governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these other governmental funds is provided in the form of combining statements elsewhere in this report. The basic financial statements also include budgetary comparison statements for the General Fund and all governmental funds with a legally adopted budget to demonstrate compliance with the annual budget as adopted (original) and amended (final). The basic governmental fund financial statements immediately follow the government-wide financial statements. Proprietary Funds The City maintains various enterprise funds to report the business-type activities of the Water Fund, Sewer Fund, Sewer Collection Fund, and Integrated Waste Fund. The City also maintains various internal service funds, which are an accounting device used to accumulate and allocate costs internally among the City’s various functions. 14.a Packet Pg. 220 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Management’s Discussion and Analysis For the Fiscal Year Ended June 30, 2020 - 6 - The City uses internal service funds to account for its self-insurance activities, vehicle fleet operations, and information technology systems. Because these services benefit governmental functions, they have been included within governmental activities in the government-wide financial statements. Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The internal service funds are combined into a single, aggregated presentation in the proprietary fund financial statements. Individual fund data for the internal service funds is provided in the form of combining statements elsewhere in this report. The basic proprietary fund financial statements immediately follow the basic governmental fund financial statements. Fiduciary Funds Fiduciary funds account for resources held for the benefit of parties outside the government. Fiduciary funds are not included in the government-wide financial statement because the resources of those funds are not available to support the City’s programs. The basic fiduciary fund financial statements immediately follow the basic proprietary fund financial statements. Notes to the Basic Financial Statements The notes to the basic financial statements provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the basic financial statements immediately follow the basic fiduciary fund financial statements. Other Information In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the City’s annual required contribution to the Defined Benefit Pension Plans and Other Post Employment Benefit Plan. Required supplementary information immediately follows the notes to the basic financial statements. The combining statements referred to earlier in connection with other governmental funds and internal service funds for non-major Special Revenue Funds, Debt Service Funds, Capital Projects Funds, and Internal Service Funds. These combining and individual fund statements and schedules immediately follow the required supplementary information. 14.a Packet Pg. 221 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Management’s Discussion and Analysis For the Fiscal Year Ended June 30, 2020 - 7 - Financial Highlights  At June 30, 2020, the City’s assets and deferred outflows of resources exceeded its liabilities and deferred inflows of resources by $357.65 million (net position). Of this amount $(281.42) million is unrestricted.  City total net position decreased $16.64 million during the fiscal year. Governmental activities net position decreased $28.74 million compared to prior fiscal year’s decrease of $21.67 million. Business- type activities net position increased $12.10 million compared to prior fiscal year’s increase of $12.73 million.  As of June 30, 2020, the City’s governmental funds reported a combined ending fund balance of $167.32 million, an increase of $4.76 million compared to the prior year. The ending fund balance is primarily identified as: $32.27 million (19 percent) Nonspendable, $101.17 million (60 percent) Restricted, $31.78 (19 percent) Committed, and $2.10 million (2 percent) Assigned and Unassigned.  As of June 30, 2020, the City’s proprietary funds (excluding internal service funds) reported a combined ending fund balance of $308.34 million. Of this amount, $53.07 million is unrestricted.  At June 30, 2020, the total committed, assigned, and unassigned fund balance for the General Fund was $33.89 million or approximately 26 percent of total general fund expenditures. Government-Wide Financial Analysis The government-wide financial statements provide long-term and short-term information about the City’s overall financial condition. The table on the following page presents a summarization of the City’s assets, liabilities, deferred inflows, and net position for its governmental and business-type activities, with comparative data from the previous year. 14.a Packet Pg. 222 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Management’s Discussion and Analysis For the Fiscal Year Ended June 30, 2020 - 8 - 2020 2019 2020 2019 2020 2019 Assets Current and other assets 194,268,880$ 187,255,869$ 239,713,106$ 231,399,500$ 433,981,986$ 418,655,369$ Capital Assets, net 289,969,123 296,311,492 291,987,188 285,505,777 581,956,311 581,817,269 Total Assets 484,238,003 483,567,361 531,700,294 516,905,277 1,015,938,297 1,000,472,638 Deferred Outflows of Resources Pension related items 40,554,393 45,181,346 6,999,758 5,636,517 47,554,151 50,817,863 OPEB related items - - 2,962,558 3,057,917 2,962,558 3,057,917 Total Deferred Outflows of Resources 40,554,393 45,181,346 9,962,316 8,694,434 50,516,709 53,875,780 Liabilities Other liabilities 28,428,982 28,870,473 17,924,036 14,655,092 46,353,018 43,525,565 Long-term liabilities 441,228,207 415,998,557 212,668,308 212,098,865 653,896,515 628,097,422 Total Liabilities 469,657,189 444,869,030 230,592,344 226,753,957 700,249,533 671,622,987 Deferred Inflows of Resources Pension related items 5,824,475 5,828,212 1,007,069 778,901 6,831,544 6,607,113 OPEB related items - - 1,721,362 1,829,014 1,721,362 1,829,014 Total Deferred Inflows of Resources 5,824,475 5,828,212 2,728,431 2,607,915 8,552,906 8,436,127 Net Position Net investment in capital assets 282,634,784 286,878,015 255,270,720 259,671,498 537,905,504 546,549,513 Restricted 101,171,196 98,129,481 - 33,999,584 101,171,196 132,129,065 Unrestricted (334,495,248) (306,956,031) 53,071,115 2,566,757 (281,424,133) (304,389,274) Total Net Position 49,310,732$ 78,051,465$ 308,341,835$ 296,237,839$ 357,652,567$ 374,289,304$ Activities Activities Total Business-TypeGovernmental Net Position Net position may serve over time as a useful indicator of a government’s financial condition. In the case of the City, as of June 30, 2020, assets and deferred outflows exceeded liabilities and deferred inflows by $357.65 million. Approximately $537.91 million of the City’s net position reflects its net investment in capital assets (e.g., land and easements, infrastructure, buildings and improvements, machinery, vehicles, and equipment, water rights, wells, and pumping equipment, distribution and collection systems, and construction in progress; less any related outstanding debt used to acquire those assets). The City uses these capital assets to provide services to residents; consequently, these assets are not available for future spending. Although the City’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. A portion of the City’s net position, $101.17 million, represents resources that are subject to external restrictions on how they may be used. The remaining balance is a deficit in unrestricted net position of $(281.42) million. This deficit reflects liabilities which exceed assets on hand and is related to the implementation of GASB 68 regarding Pension Plan reporting, GASB 75 regarding OPEB liability reporting, and other long-term liabilities such as obligations for claims and judgments. 14.a Packet Pg. 223 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Management’s Discussion and Analysis For the Fiscal Year Ended June 30, 2020 - 9 - Governmental Business-Type Activities Activities Total Net investment in capital assets 282,634,784$ 255,270,720$ 537,905,504$ Restricted: Public safety 2,906,357 - 2,906,357 Streets and capital projects 16,494,383 - 16,494,383 Culture and recreation 1,077,658 - 1,077,658 Grants 818,227 - 818,227 Community development 36,330,289 - 36,330,289 Debt service 190,716 - 190,716 Capital projects 41,853,566 - 41,853,566 Parks 1,500,000 - 1,500,000 Total restricted 101,171,196 - 101,171,196 Unrestricted (deficit)(334,495,248) 53,071,115 (281,424,133) Total net position 49,310,732$ 308,341,835$ 357,652,567$ Net Position June 30, 2020 Restricted Fund Balance 3% 16%1% 1% 36% 0% 41% 2% Public safety Streets and capital projects Culture and recreation Grants Community development Debt service Capital projects Parks 14.a Packet Pg. 224 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Management’s Discussion and Analysis For the Fiscal Year Ended June 30, 2020 - 10 - During the fiscal year ended June 30, 2020, the net position of the City decreased by $16.64 million to $357.65 million, as summarized in the following condensed statement of activities. 2020 2019 2020 2019 2020 2019 Revenues Program Revenues: Charges for services 23,118,560$ 20,390,086$ 77,853,374$ 76,725,422$ 100,971,934$ 97,115,508$ Operating grants and contributions 24,531,954 24,786,515 1,991,747 1,832,879 26,523,701 26,619,394 Capital grants and contributions 535,026 270,819 4,604,699 10,121,344 5,139,725 10,392,163 General Revenues: Property taxes 18,814,022 17,101,369 - - 18,814,022 17,101,369 Sales taxes 48,179,314 49,450,785 - - 48,179,314 49,450,785 Franchise taxes 12,684,556 11,550,447 - - 12,684,556 11,550,447 Utilities user taxes 22,680,847 22,924,522 - - 22,680,847 22,924,522 Transient occupancy taxes 4,525,751 4,950,170 - - 4,525,751 4,950,170 Other taxes 7,662,745 8,217,876 - - 7,662,745 8,217,876 Investment earnings 3,958,589 3,864,707 2,845,596 3,112,261 6,804,185 6,976,968 Other revenues 4,314,990 2,979,410 1,910,072 2,044,179 6,225,062 5,023,589 Total Revenues 171,006,354 166,486,706 89,205,488 93,836,085 260,211,842 260,322,791 Expenses General government 28,191,734 29,494,169 - - 28,191,734 29,494,169 Public safety 106,626,978 98,603,681 - - 106,626,978 98,603,681 Streets 46,239,864 44,613,103 - - 46,239,864 44,613,103 Culture and recreation 5,792,349 3,712,899 - - 5,792,349 3,712,899 Community development 7,583,733 6,679,568 - - 7,583,733 6,679,568 Community service 4,098,616 4,195,874 - - 4,098,616 4,195,874 Interest on long-term debt 1,213,813 861,785 - - 1,213,813 861,785 Water - - 40,581,468 35,988,661 40,581,468 35,988,661 Sewer - - 27,475,781 27,787,317 27,475,781 27,787,317 Sewer Collection - - 7,650,504 8,172,922 7,650,504 8,172,922 Integrated Waste - - 1,393,739 777,167 1,393,739 777,167 Total Expenditures 199,747,087 188,161,079 77,101,492 72,726,067 276,848,579 260,887,146 Excess (deficiency) of Revenues over (under) expenditures before extraordinary items (28,740,733) (21,674,373) 12,103,996 21,110,018 (16,636,737) (564,355) Capital contributions and transfers - - - (8,375,074) - (8,375,074) Change in Net Position (28,740,733) (21,674,373) 12,103,996 12,734,944 (16,636,737) (8,939,429) Net Position - beginning 78,051,465 99,725,838 296,237,839 283,502,895 374,289,304 383,228,733 Net Position - ending 49,310,732$ 78,051,465$ 308,341,835$ 296,237,839$ 357,652,567$ 374,289,304$ Business-Type Activities Total Governmental Activities Changes in Net Position – Governmental Activities Revenues related to the City’s Governmental activities totaled $171.01 million for the fiscal year ended June 30, 2020, an increase of $4.52 million, or 3 percent, from the prior year. The primary causes for the overall increase are discussed in further detail on the following page. 14.a Packet Pg. 225 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Management’s Discussion and Analysis For the Fiscal Year Ended June 30, 2020 - 11 -  Charges for services revenue, which increased $2.73 million, or 13 percent, from the prior year due to increased development impact fees and other charges associated with current year development.  Property tax revenue, which increased $1.71 million, or 10 percent, from the prior year due to increased revenues from property taxes in lieu of VLF resulting from growth in gross assessed valuation within the City.  Sales tax revenue decreased $1.27 million, or 3 percent, and transient occupancy tax revenue decreased $0.42 million, or 3 percent, from the prior year due to decreased consumer and travel activity as a result of the COVID-19 pandemic.  Franchise tax revenue, which increased $1.13 million, or 10 percent, from the prior year due to increased activity and rate increases from the City’s waste management contractor.  Other revenues, which increased by $1.34 million, or 45 percent, from the prior year primarily due to a $1.5 million donation to the City for Park improvements. Revenues by Source – Governmental Activities – Fiscal Year Comparison 2020 vs. 2019 Expenses related to the City’s Governmental activities totaled $199.75 million for the fiscal year ended June 30, 2020, an increase of $11.59 million, or 6 percent, from the prior year. The primary causes for the overall increase were:  Expenses related to public safety and streets (public works) increased $8.02 million, or 8 percent, and $1.63 million, or 4 percent, respectively, from the prior year primarily due to changes in the City’s CalPERS net pension liability.  Culture and recreation expenses, which increased $2.08 million, or 56 percent, from the prior year due to spending for capital projects for playground equipment replacement and improvements to the Jerry Lewis Family Swim Center. 14.a Packet Pg. 226 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Management’s Discussion and Analysis For the Fiscal Year Ended June 30, 2020 - 12 - Changes in Net Position – Business-Type Activities Revenues related to the City’s Business-Type activities totaled $89.21 million for the fiscal year ended June 30, 2020, a decrease of $4.63 million, or 5 percent, from the prior year. The primary causes for the overall decrease were:  Revenue related to charges for services, which increased $1.12 million from the prior year despite no rate increases or substantial growth in utility accounts throughout the fiscal year.  Capital grants and contributions, which decreased $5.52 million from the prior year due primarily to a large capital contribution of land of approximately $5.6 million that occurred in fiscal year 2019. Revenues by Source – Business-Type Activities – Fiscal Year Comparison 2020 vs. 2019 Fund Financial Analysis As detailed above, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental Funds The focus of the City’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information may be useful in assessing the City’s financing requirements. In particular, assigned and unassigned fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year. As of June 30, 2020, the City’s governmental funds reported total combined ending fund balances of $167.32 million, an increase of $4.76 million from the prior year. Approximately 20 percent of the City’s governmental funds’ fund balances, or $33.87 million, constitutes committed, assigned, and unassigned fund balance, which is available for spending at the government’s discretion within the guidelines of the funding sources. The remaining fund balance, $133.45 million, is either nonspendable or restricted for purposes imposed by creditors, grantors, contributors, laws or regulations of other governments or through enabling legislation. 14.a Packet Pg. 227 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Management’s Discussion and Analysis For the Fiscal Year Ended June 30, 2020 - 13 - General Fund Financial Highlights The General Fund is the chief operating fund of the City. At June 30, 2020, committed, assigned, and unassigned fund balance of the General Fund was $33.89 million, while total fund balance was $67.72 million. As a measure of the General Fund's liquidity, it is useful to compare committed, assigned, and unassigned fund balance to total fund expenditures. Committed, assigned, and unassigned fund balance represents 26 percent of the total general fund expenditures. The City Council has designated all of the committed fund balances for specified purposes. The fund balance of the General Fund increased by $3.18 million during the current fiscal year, primarily due to increased tax revenue and expenditures returning to normal levels after over $7.0 million of expenditures were transferred into the General Fund in the previous year to remediate the deficit in the Special Gas Tax Fund. 2020 2019 Revenues Taxes 106,666,910$ 105,604,698$ Licenses and permits 11,864,775 11,567,573 Charges for services 5,751,781 7,021,328 Use of money and property 1,312,396 1,048,252 Intergovernmental 1,294,520 1,332,916 Other 7,500,500 6,396,289 Total Revenues 134,390,882 132,971,056 Expenditures Current: General government 23,828,472 22,905,192 Public safety 79,671,669 81,553,652 Streets 14,915,556 24,119,892 Culture and recreation 3,225,521 3,424,819 Community development 4,023,568 4,015,206 Community service 2,735,040 2,454,631 Debt Service: Principal 1,840,830 1,517,120 Interest and fiscal charges 943,757 589,633 Total Expenditures 131,184,413 140,580,145 Excess (Deficiency) of Revenues Over (Under) Expenditures 3,206,469 (7,609,089) Net transfers (118,755) - Sale of capital assets 92,029 58,949 Net Change in Fund Balances 3,179,743$ (7,550,140)$ General Fund revenues for the fiscal year ended June 30, 2020, increased by $1.42 million, or approximately 1 percent, over the prior year. The overall increase was due to the following factors:  Taxes increased by $1.06 million from the prior year, largely due to a $1.59 million increase in property taxes in lieu of VLF as a result of an increase in assessed valuations. Franchise fees from the City’s waste management contractor also increased by $1.20 million due to increased activity and rate increases. These increases were offset by decreases of $1.16 million, $0.42 million, and $0.24 million in 14.a Packet Pg. 228 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Management’s Discussion and Analysis For the Fiscal Year Ended June 30, 2020 - 14 - sales tax, transient occupancy tax, and utility users tax, respectively, which were negatively impacted by consumer activity during the COVID-19 pandemic.  Charges for services decreased by $1.27 million from the prior year due to decreased billings for Police personnel at various public events.  Other revenues increased $1.1 million from prior year due primarily to a $1.5 million donation to the City for Park improvements received during the year. General Fund expenditures for the fiscal year ended June 30, 2020, decreased by $9.40 million, or approximately 7 percent, over the prior year. The overall decrease was due to the following factors:  General government expenditures increased by $0.92 million to $23.83 million due to increased liability charges as a result of claim settlements and new claims filed against the City in the current year. This overage is offset by salary savings from vacant positions in various City departments.  Public safety expenditures decreased by $1.88 million to $79.67 million due to personnel savings from vacant positions.  Public works (streets) expenditures decreased by $9.20 million to $14.92 million due largely to the transfer of over $7.0 million in expenditures that were transferred to the General Fund from the Special Gas Tax Fund in the prior fiscal year to remediate the deficit in the Special Gas Tax Fund. The additional savings of approximately $2.20 million in the current year is attributable to personnel savings from vacant positions as well as the multiple facility closures due to the pandemic, specifically the closure of parks, libraries, and community centers.  Debt service expenditures for principal and interest payments increased by $0.32 million and $0.35 million, respectively, from the prior fiscal year based on the City’s annual debt service requirements. General Fund Budgetary Highlights The General Fund budget and actual analysis can be found on the following page. During the year, the City’s adopted General Fund revenue and expenditure budgets were amended and increased by $2.72 million and $8.61 million, respectively. Major expenditure budget adjustments included: $2.37 million for budget carryovers from the prior year, $3.0 million for a General Plan update grant received from the State during the year, $1.49 million for additional legal costs incurred during the year, and $1.77 million for street improvements and other capital projects throughout the City. Major revenue budget adjustments included: $3.0 million for the General Plan update grant, offset by minor decreases of $0.3 million in other revenues. All amendments to original budgeted appropriations were authorized by City Council or the Director of Finance during the fiscal year. Major differences between the amended budget and actual results are discussed in further detail on the following pages. 14.a Packet Pg. 229 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Management’s Discussion and Analysis For the Fiscal Year Ended June 30, 2020 - 15 - Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES: Taxes 104,065,400$ 104,065,400$ 106,666,910$ 2,601,510$ Licenses and permits 10,580,000 10,580,000 11,864,775 1,284,775 Fines and forfeitures 1,790,900 1,790,900 1,593,101 (197,799) Use of money and property 350,000 350,000 1,312,396 962,396 Lease revenue 982,000 982,000 1,193,281 211,281 Intergovernmental 3,056,000 5,291,000 1,294,520 (3,996,480) Charges for services 5,403,400 5,495,834 5,751,781 255,947 Other revenues 2,474,800 2,866,698 4,714,118 1,847,420 Total revenues 128,702,500 131,421,832 134,390,882 2,969,050 EXPENDITURES: Current: General government Mayor 811,200 745,783 720,197 25,586 Common council 931,800 938,872 817,123 121,749 City clerk 779,300 978,762 796,839 181,923 City attorney 2,319,800 3,807,414 3,508,445 298,969 City administrator 3,179,000 3,204,024 2,757,954 446,070 Personnel 1,064,800 1,437,805 1,124,615 313,190 Finance 3,673,400 3,681,730 3,701,809 (20,079) Nondepartmental 3,902,000 3,904,344 10,401,490 (6,497,146) Public safety Police 82,728,100 83,031,724 79,671,669 3,360,055 Streets Public services 15,189,900 16,956,308 14,915,556 2,040,752 Culture and recreation Park, recreation and community services 3,567,600 3,567,600 3,225,521 342,079 Community development 3,948,600 8,056,884 4,023,568 4,033,316 Community service 2,577,700 2,967,131 2,735,040 232,091 Debt service: Principal 1,540,800 1,540,800 1,840,830 (300,030) Interest and fiscal charges 932,500 932,500 943,757 (11,257) Total expenditures 127,146,500 135,751,681 131,184,413 4,567,268 REVENUES OVER (UNDER) EXPENDITURES 1,556,000 (4,329,849) 3,206,469 (1,598,218) OTHER FINANCING SOURCES (USES) Proceeds from sale of capital assets - - 92,029 92,029 Transfers out (1,500,000) (118,755) (118,755) - Total other financing sources (uses)(1,500,000) (118,755) (26,726) 92,029 CHANGE IN FUND BALANCE 56,000$ (4,448,604)$ 3,179,743 (1,506,189)$ Fund Balance: Beginning of year 64,540,412 End of year 67,720,155$ Budgeted Amounts Revenues, including transfers in, were $2.97 million, or 2 percent, higher than budgetary estimates as a result of the following:  Taxes increased $2.6 million primarily due to an increase in property taxes in lieu of VLF as a result of an increase in assessed valuations. In addition, franchise fees from the City’s waste management contractor were higher than anticipated due to increased activity and rate increases. 14.a Packet Pg. 230 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Management’s Discussion and Analysis For the Fiscal Year Ended June 30, 2020 - 16 -  Licenses and permits increased $1.28 million due to development activities during the year. Increased development in the City is specifically related to warehousing, distribution, and logistics buildings and other development surrounding the San Bernardino International Airport.  Use of money and property increased $0.96 million due to a $0.54 million increase in the fair value adjustment for investments, which was not budgeted, as well as an increase of $0.42 million in interest revenue primarily due to an increased rate of return on the City’s investment portfolio compared to budgeted expectations.  Intergovernmental revenues were $4.0 million lower than the amended budget, primarily due to lower grant revenues than anticipated. Specifically, the $3.0 million General Plan update grant was included in both the amended revenue and expenditure budgets, however, the grant funds were not spent prior to year-end. As a result, the funds were reclassified to unearned revenue as of June 30, 2020. As funds are expended as anticipated over the next fiscal year, the corresponding amounts will be recognized as revenue.  Other revenues increased $1.85 million primarily due to a $1.5 million donation to the City for Park improvements. As the City considers how to expend the funds in accordance with the donor’s intentions, the amount has been included in Restricted fund balance. Expenditures, including transfers out, were $4.57 million, or 3 percent, lower than budgetary estimates as a result of the following:  Nondepartmental expenditures within the general government were $6.50 million higher than budgeted due largely to increased liability charges for general liability claims. The claim settlements paid during the fiscal year as well as the number of new claims incurred were both higher than anticipated.  Public safety expenditures were $3.36 million less than budgeted as a result of personnel savings from vacant positions. A portion of the savings not related to personnel relates to the purchase of previously budgeted vehicles and is expected to be carried over into the next fiscal year.  Streets expenditures were $2.04 million less than budgeted due largely to personnel savings from vacant positions. Approximately $0.90 million of the savings is attributable to the multiple facility closures during the COVID-19 pandemic, specifically the closure of parks, libraries, and community centers. Because of the pandemic, the budgets established annually for major equipment or emergency building repairs were not fully expended and no major equipment failures occurred during the fiscal year that required use of these funds.  Community development expenditures were $4.03 million less than anticipated. $3.0 million of the savings is due to the General Plan update grant not being expended during the year as discussed above. The remaining $1.03 million is related to personnel and other operational savings. 14.a Packet Pg. 231 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Management’s Discussion and Analysis For the Fiscal Year Ended June 30, 2020 - 17 - Other Major Governmental Fund Financial Highlights The Federal and State Grants Fund is used to account for various grants awarded to the City by Federal, State, and local governments not otherwise accounted for in the General Fund or Capital Projects funds. Current year revenues totaled $9.41 million and current year expenditures totaled $9.88 million, resulting in a decrease in fund balance of $0.47 million for the current year. At June 30, 2020, the fund balance was $17.61 million, all of which was restricted for specific purposes based on the stipulations established by the granting agencies. Business-Type Funds As of June 30, 2020, the City’s business-type funds reported total combined ending fund balances of $308.34 million, an increase of $12.10 million from the prior year. Approximately 83 percent of the City’s proprietary funds’ fund balances, or $255.27 million, represents the funds’ net investment in capital assets. Major Fund Financial Highlights The Water Fund is used to account for the provision of water services to the residential, commercial, and industrial segments of the City. All activities necessary to provide such services are accounted for in this fund, including, but not limited to, administration, operations, maintenance, financing and related debt service, and billing and collection. As of June 30, 2020, the net position totaled $166.07 million, up from $160.77 million in the prior year due to positive net income from operations and capital contributions of $5.30 million. Total revenues increased by $1.17 million from the prior fiscal year, despite no rate increases or substantial growth in utility accounts throughout fiscal year ending June 30, 2020. Total expenses increased by $4.63 million compared to the prior year due mainly to reconciled costs between the City and the Department of previous accruals due to the City as well as increased depreciation expense. The Sewer Fund accounts for the provision of sewer treatment of residential, commercial, and industrial segments of the City. All activities necessary to provide such services are accounted for in this fund, including, but not limited to, administration, operations, maintenance, financing and related debt service, and billing and collection. In the current year, the net position increased by $6.47 million to $109.75 million as of June 30, 2020. The increase in net position was primarily due to 24 percent decrease in total expenses compared to the prior fiscal year due to the liquidation of the East Trunk Line Fiduciary fund in the previous year. The Sewer Collection Fund is used to account for the provision of wastewater collection to residential, commercial, and industrial segments of the City. All activities necessary to provide such services are accounted for in this fund, including, but not limited to, administration, operations, maintenance, financing and related debt service, and billing and collection. As of June 30, 2020, the net position totaled $30.61 million, up from $29.62 million in the prior year. For the fiscal year ended June 30, 2020, total revenues for the Sewer Collection Fund increased $0.2 million and total expenses decreased $0.52 million compared to the prior fiscal year. 14.a Packet Pg. 232 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Management’s Discussion and Analysis For the Fiscal Year Ended June 30, 2020 - 18 - Capital Assets Capital assets, including the infrastructure of the City, are those assets that are used in the performance of the City’s functions. At June 30, 2020, capital assets totaled $289.97 million for governmental activities and $291.99 million for business-type activities, net of accumulated depreciation on capital assets, which is recognized in the Government-wide Financial Statements. The City’s capital assets include land and easements, infrastructure, buildings and improvements, machinery, vehicles, and equipment, water rights, wells, and pumping equipment, distribution and collection systems, and construction in progress. The net increase over the prior fiscal year in the City’s capital assets was $0.14 million, or less than 1 percent. 2020 2019 2020 2019 2020 2019 Land and easements 103,761,234$ 103,334,621$ 23,213,972$ 23,213,972$ 126,975,206$ 126,548,593$ Construction in progress 16,802,897 15,126,024 20,670,762 7,907,281 37,473,659 23,033,305 Infrastructure 151,004,275 158,760,870 - - 151,004,275 158,760,870 Buildings and improvements 13,616,716 12,724,496 - - 13,616,716 12,724,496 Machinery, vehicles, and equipment 4,437,134 5,423,981 - - 4,437,134 5,423,981 Purchased software 346,867 941,500 - - 346,867 941,500 Water rights, wells, and pumping - - 58,704,740 60,494,000 58,704,740 60,494,000 Distribution and collection systems - - 117,042,172 120,238,521 117,042,172 120,238,521 Building, plant, and store yards - - 46,848,446 51,092,379 46,848,446 51,092,379 Other capital assets - - 25,507,096 22,559,624 25,507,096 22,559,624 Total Capital Assets, net 289,969,123$ 296,311,492$ 291,987,188$ 285,505,777$ 581,956,311$ 581,817,269$ Activities Activities Total Governmental Business-Type Major capital asset transactions during the current fiscal year included the following:  Infrastructure additions were $4.40 million. Street additions accounted for $2.03 million, traffic control additions totaled $1.72 million, and storm drain additions were $0.65 million.  Completed CIP projects for buildings and improvements in the City’s Governmental Activities totaled $2.42 million, consisting primarily of park improvements and renovations. In the City’s Business-Type Activities, completed CIP projects totaled $4.91 million for various projects in the Water and Sewer Treatment Funds. Additional information on the City’s capital assets can be found under Note 6 in the Notes to the Financial Statements. 14.a Packet Pg. 233 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Management’s Discussion and Analysis For the Fiscal Year Ended June 30, 2020 - 19 - Long-Term Liabilities As of June 30, 2020, the City had $111.51 million in long-term debt outstanding, a decrease of $4.93 million from the prior year, attributable to the City’s annual debt service payments. 2020 2019 2020 2019 2020 2019 Notes payable 24,666,171$ 26,649,629$ -$ 300,000$ 24,666,171$ 26,949,629$ Bonds payable - - 83,813,621 85,482,663 83,813,621 85,482,663 Lease revenue bonds 2,751,781 3,598,360 - - 2,751,781 3,598,360 California Infrastructure and Economic Development Bank 274,558 406,234 - - 274,558 406,234 Total long term debt 27,692,510$ 30,654,223$ 83,813,621$ 85,782,663$ 111,506,131$ 116,436,886$ Activities Activities Total Governmental Business-Type Additional information on the City’s long-term liabilities can be found under Note 7 in the Notes to the Financial Statements. Economic Factors and Next Year’s Budget and Rates The pandemic resulting from the novel coronavirus (COVID-19) created an economic shock experienced around the world. As a result, the City of San Bernardino finds itself in the same challenging economic environment as other jurisdictions throughout the country. The loss of revenue related to the pandemic has and will continue to have significant impacts on the City’s ability to maintain existing levels of service to its residents. In its Summer 2020 Inland Empire Regional Intelligence Report (UCR Report), the UCR Center for Economic Forecasting and Development detailed the predicted economic fallout of the health mandates and other guidelines instituted by state and local authorities to respond to the pandemic. The UCR Report states that the current economic situation is unique because “the economic damage sustained is not the result of structural imbalances in the economy, as in most other recessions, but the result of mandates…The length of time before health mandates are fully lifted, and the consumers’ confidence to resume their normal activities, will be key in determining the speed of the economic recovery.” As a result of the shutdowns mandated to slow the spread of the virus, the City’s employment declined and the unemployment rate skyrocketed from 4.10% at the end of 2019 to 16.4% in June 2020. As of September 2020, the City’s unemployment rate of 13.8% is higher than both the State level of 11.4% and San Bernardino County level of 10.8%. The local real estate market has proven to be more resilient to the effects of COVID- 19, as median home prices in San Bernardino increased to $305,000 in 2020 from $290,000 in 2019. Despite the historic job losses in the early months of the response to the pandemic, the UCR Report posits that “the economy appears to have bottomed, with the May employment data indicating recovery in some sectors.” Nevertheless, the UCR Report does acknowledge that “there is a long way to go before March and April job losses are reversed.” Ultimately, it may take until the second half of 2021 for the labor market to fully recover. At the time of the budget preparation for the Fiscal Year 2020-21, it was apparent that the financial impacts of the pandemic would continue past the fiscal year ended June 30, 2020. The Fiscal Year 2020-21 proposed budget reflected an operating deficit of $10.25 million and reflects the cost of providing services at pre-COVID levels and does not include any additional services or programs. Over $7.38 million of deficit reduction strategies were identified, with the remaining $2.87 million expected to be drawn from the City’s reserves to balance the budget. Subsequent to the adoption of the budget, the City was allocated a total of $5.38 million 14.a Packet Pg. 234 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Management’s Discussion and Analysis For the Fiscal Year Ended June 30, 2020 - 20 - from both the California Department of Finance and the County of San Bernardino as part of their use of the federal funds from the CARES Act. These funds were used to offset the City’s anticipated costs to respond to the ongoing COVID-19 pandemic and eliminated the need for the City to use reserves in Fiscal Year 2020-21. Additional details regarding the City’s budget and its overall Fiscal Year 2020-21 Adopted Budget can be found on the City’s website. Questions or requests for information regarding the Adopted Budget should be directed to the Finance Department. Requests for Information This financial report is designed to provide a general overview of the City of San Bernardino’s finances for all those with an interest in the government’s finances and to show the City’s accountability for the financial resources it receives. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Director of Finance, 290 North “D” Street, San Bernardino, California 92401. 14.a Packet Pg. 235 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements 14.a Packet Pg. 236 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements BASIC FINANCIAL STATEMENTS 14.a Packet Pg. 237 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements 14.a Packet Pg. 238 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements GOVERNMENT-WIDE FINANCIAL STATEMENTS 14.a Packet Pg. 239 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Statement of Net Position June 30, 2020 - 21 - The accompanying notes are an integral part of these financial statements. Governmental Business-Type Activities Activities Total Cash and investments 106,811,575$ 108,239,108$ 215,050,683$ Cash and investments with fiscal agents 56,304 - 56,304 Receivables: Accounts, Net 6,575,053 11,098,724 17,673,777 Interest 470,276 229,534 699,810 Due from other governments 14,358,984 569,499 14,928,483 Internal balances 1,261,072 (1,261,072) - Inventory 182,352 1,814,978 1,997,330 Prepaid items 161,073 657,858 818,931 Noncurrent assets: Restricted cash - 47,097,153 47,097,153 Restricted investments - Consent Decree (Note 17)- 24,636,959 24,636,959 Restricted - other assets - 22,508,151 22,508,151 Property held for resale 64,392,191 - 64,392,191 Investment in joint ventures - 24,122,214 24,122,214 Non-depreciable capital assets 120,564,131 43,884,734 164,448,865 Depreciable capital assets, net 169,058,125 248,102,454 417,160,579 Intangible assets, being amortized, net 346,867 - 346,867 Total assets 484,238,003 531,700,294 1,015,938,297 Pension-related deferred outflows of resources 40,554,393 6,999,758 47,554,151 OEPB-related deferred outflows of resources - 2,962,558 2,962,558 Total deferred outflows of resources 40,554,393 9,962,316 50,516,709 DEFERRED OUTFLOWS OF RESOURCES ASSETS Primary Government 14.a Packet Pg. 240 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Statement of Net Position (Continued) June 30, 2020 - 22 - The accompanying notes are an integral part of these financial statements. Governmental Business-Type Activities Activities Total Accounts payable and accrued liabilities 6,928,745$ 9,613,319$ 16,542,064$ Payroll and related liabilities 2,682,906 1,579,045 4,261,951 Interest payable 194,100 1,444,089 1,638,189 Retentions payable 495,256 - 495,256 Unearned revenue 8,411,583 - 8,411,583 Deposits payable 380,167 622,907 1,003,074 Noncurrent liabilities: Due within one year: Compensated absences 1,800,636 1,361,285 3,161,921 Claims payable 5,107,621 1,778,391 6,886,012 Long-term debt 2,427,968 1,525,000 3,952,968 Due in more than one year: Deposits payable - 3,006,204 3,006,204 Unearned revenue - Consent Decree (Note 17)- 47,145,110 47,145,110 Due to Successor Agency 2,232,925 - 2,232,925 Aggregate net pension liability 382,853,267 60,531,689 443,384,956 Net OPEB liability - 13,557,801 13,557,801 Landfill closure liability - 5,793,586 5,793,586 Compensated absences 4,201,483 345,297 4,546,780 Claims payable 26,675,990 - 26,675,990 Long-term debt 25,264,542 82,288,621 107,553,163 Total liabilities 469,657,189 230,592,344 700,249,533 Pension-related deferred inflows of resources 5,824,475 1,007,069 6,831,544 OPEB-related deferred inflows of resources - 1,721,362 1,721,362 Total deferred inflows of resources 5,824,475 2,728,431 8,552,906 Net investment in capital assets 282,634,784 255,270,720 537,905,504 Restricted: Public safety 2,906,357 - 2,906,357 Streets and capital projects 16,494,383 - 16,494,383 Culture and recreation 1,077,658 - 1,077,658 Grants 818,227 - 818,227 Community development 36,330,289 - 36,330,289 Debt service 190,716 - 190,716 Capital projects 41,853,566 - 41,853,566 Parks 1,500,000 - 1,500,000 Total restricted 101,171,196 - 101,171,196 Unrestricted (deficit)(334,495,248) 53,071,115 (281,424,133) Total net position 49,310,732$ 308,341,835$ 357,652,567$ NET POSITION DEFERRED INFLOWS OF RESOURCES LIABILITIES Primary Government 14.a Packet Pg. 241 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Statement of Activities For the Fiscal Year Ended June 30, 2020 - 23 - The accompanying notes are an integral part of these financial statements. Operating Capital Total Charges for Grants and Grants and Program Functions/Programs Expenses Services Contributions Contributions Revenues Primary government: Governmental activities: General government 28,191,734$ 1,121,285$ 2,407,858$ -$ 3,529,143$ Public safety 106,626,978 6,646,933 3,578,912 - 10,225,845 Streets 46,239,864 8,217,713 13,753,377 535,026 22,506,116 Culture and recreation 5,792,349 2,993,167 - - 2,993,167 Community development 7,583,733 4,110,272 3,927,811 - 8,038,083 Community service 4,098,616 29,190 863,996 - 893,186 Interest on long-term debt 1,213,813 - - - - Total governmental activities 199,747,087 23,118,560 24,531,954 535,026 48,185,540 Business-type activities: Water 40,581,468 39,937,495 1,991,747 2,002,637 43,931,879 Sewer 27,475,781 29,703,284 - 2,257,330 31,960,614 Sewer Collection 7,650,504 7,656,675 - 344,732 8,001,407 Integrated Waste 1,393,739 555,920 - - 555,920 Total business-type activities 77,101,492 77,853,374 1,991,747 4,604,699 84,449,820 Total primary government 276,848,579$ 100,971,934$ 26,523,701$ 5,139,725$ 132,635,360$ Program Revenues 14.a Packet Pg. 242 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Statement of Activities For the Fiscal Year Ended June 30, 2020 - 24 - The accompanying notes are an integral part of these financial statements. Governmental Business-Type Functions/Programs Activities Activities Total Primary government: Governmental activities: General government (24,662,591)$ -$ (24,662,591)$ Public safety (96,401,133) - (96,401,133) Streets (23,733,748) - (23,733,748) Culture and recreation (2,799,182) - (2,799,182) Community development 454,350 - 454,350 Community service (3,205,430) - (3,205,430) Interest on long-term debt (1,213,813) - (1,213,813) Total governmental activities (151,561,547) - (151,561,547) Business-type activities: Water - 3,350,411 3,350,411 Sewer - 4,484,833 4,484,833 Sewer Collection - 350,903 350,903 Integrated Waste - (837,819) (837,819) Total business-type activities - 7,348,328 7,348,328 Total primary government (151,561,547) 7,348,328 (144,213,219) General revenues: Taxes: Property taxes 18,814,022 - 18,814,022 Sales taxes 48,179,314 - 48,179,314 Franchise taxes 12,684,556 - 12,684,556 Utilities user taxes 22,680,847 - 22,680,847 Transient occupancy taxes 4,525,751 - 4,525,751 Other taxes 7,662,745 - 7,662,745 Total taxes 114,547,235 - 114,547,235 Investment earnings 3,958,589 2,845,596 6,804,185 Gain (loss) on disposal of assets 91,223 (22,091) 69,132 Miscellaneous 4,223,767 1,932,163 6,155,930 Subtotal 8,273,579 4,755,668 13,029,247 Total general revenues 122,820,814 4,755,668 127,576,482 Changes in net position (28,740,733) 12,103,996 (16,636,737) Net Position - beginning of year 78,051,465 296,237,839 374,289,304 Net Position - end of year 49,310,732$ 308,341,835$ 357,652,567$ Primary Government and Changes in Net Position Net (Expense) Revenue 14.a Packet Pg. 243 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements 14.a Packet Pg. 244 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements GOVERNMENTAL FUND FINANCIAL STATEMENTS 14.a Packet Pg. 245 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Balance Sheet Governmental Funds June 30, 2020 - 25 - The accompanying notes are an integral part of these financial statements. Federal and Other Total General State Grants Governmental Governmental Fund Fund Funds Funds Cash and investments 32,355,583$ 2,570,605$ 64,950,985$ 99,877,173$ Receivables: Accounts, Net 6,260,416 107 138,892 6,399,415 Interest 249,150 8,503 198,044 455,697 Due from other governments 9,265,628 2,937,971 2,155,385 14,358,984 Prepaid items 110,989 - - 110,989 Due from other funds 2,116,072 - - 2,116,072 Property held for resale 32,162,065 16,110,586 16,119,540 64,392,191 Restricted cash and investments held by fiscal agents 56,304 - - 56,304 Total assets 82,576,207$ 21,627,772$ 83,562,846$ 187,766,825$ Liabilities: Accounts payable 2,228,946$ 795,750$ 1,418,327$ 4,443,023$ Accrued liabilities 1,361,613 546,888 - 1,908,501 Payroll and related liabilities 2,493,849 52,532 31,322 2,577,703 Retentions payable 318,121 82,508 94,627 495,256 Deposits payable 345,598 - 34,569 380,167 Unearned revenue 5,875,000 2,536,583 - 8,411,583 Due to Successor Agency 2,232,925 - - 2,232,925 Total liabilities 14,856,052 4,014,261 1,578,845 20,449,158 Fund Balances: Nonspendable Prepaid items 110,989 - - 110,989 Property held for resale 32,162,065 - - 32,162,065 Restricted Housing - 16,795,284 19,535,005 36,330,289 Grants - 818,227 - 818,227 Street improvements - - 13,273,255 13,273,255 Cable TV - - 1,077,658 1,077,658 Law enforcement - - 2,906,357 2,906,357 Transportation - - 3,211,418 3,211,418 Sewer - - 9,710 9,710 Debt service 56,304 - 134,412 190,716 Capital projects - - 41,853,566 41,853,566 Parks 1,500,000 - - 1,500,000 Committed Animal control 68,387 - - 68,387 Emergency reserve 19,024,050 - - 19,024,050 Economic contingency reserve 12,682,700 - - 12,682,700 Assigned Budget carryovers and continuing appropriations 1,517,842 - - 1,517,842 Unassigned 597,818 - (17,380) 580,438 Total fund balances 67,720,155 17,613,511 81,984,001 167,317,667 Total liabilities and fund balances 82,576,207$ 21,627,772$ 83,562,846$ 187,766,825$ LIABILITIES AND FUND BALANCES ASSETS Major Funds 14.a Packet Pg. 246 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Reconciliation of the Governmental Balance Sheet to the Government-Wide Statement of Net Position June 30, 2020 - 26 - The accompanying notes are an integral part of these financial statements. Total Fund Balances - Total Governmental Funds 167,317,667$ Amounts reported for governmental activities in the Statement of Net Position were different because: Capital assets used in governmental activities were not financial resources and therefore were not reported in governmental funds. Government-Wide Financial Statements 289,969,123 Less: Internal Service Funds' capital assets (2,908,797) Total capital assets adjustment 287,060,326 Interest payable on long-term debt did not require current financial resources. Therefore, interest payable was not reported as a liability in Governmental Funds Balance Sheet. (194,100) Long-term liabilities are not due and payable in the current period and therefore are not reported in the governmental funds. Amount reported in Government-Wide Statement of Net Position: Compensated absences - due within one year (1,800,636) Compensated absences - due in more than one year (4,201,483) Claims payable - due within one year (5,107,621) Claims payable - due in more than one year (26,675,990) Long-term debt - due within one year (2,427,968) Long-term debt - due in more than one year (25,264,542) Total reported in Government-Wide Statement of Net Position (65,478,240) Less: amount reported in Internal Service Funds Compensated absences - due within one year 69,788 Compensated absences - due in more than one year 162,839 Claims payable - due within one year 5,107,621 Claims payable - due in more than one year 26,675,990 Total reported in Internal Service Funds 32,016,238 Net long-term liabilities (33,462,002) Aggregate net pension liability is not due and payable in the current period and therefore is not reported in the governmental funds. This amount does not include the aggregate net pension liability in the Internal Service Funds in the amount of $14,775,112.(368,078,155) Actuarially determined pension deferred outflows of resources are reported in the government-wide statements but are not reported in the governmental funds. This amount does not include the pension deferred outflows in the Internal Service Funds in the amount of $1,645,115.38,909,278 Actuarially determined pension deferred inflows of resources are reported in the government-wide statements but are not reported in the governmental funds. This amount does not include the pension deferred inflows in the Internal Service Funds in the amount of $245,815.(5,578,660) Internal service funds were used by management to charge the costs of certain activities to individual funds. The assets and liabilities of the internal service funds were included in governmental activities in the Government-Wide Statement of Net Position.(36,663,622) Net Position of Governmental Activities 49,310,732$ 14.a Packet Pg. 247 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds For the Fiscal Year Ended June 30, 2020 - 27 - The accompanying notes are an integral part of these financial statements. Federal and Other Total General State Grants Governmental Governmental Fund Fund Funds Funds REVENUES: Taxes 106,666,910$ -$ 5,417,910$ 112,084,820$ Licenses and permits 11,864,775 - 1,345,900 13,210,675 Impact fees - - 4,188,573 4,188,573 Fines and forfeitures 1,593,101 - 1,018,739 2,611,840 Use of money and property 1,312,396 86,303 1,804,006 3,202,705 Lease revenue 1,193,281 - - 1,193,281 Intergovernmental 1,294,520 9,303,164 10,977,743 21,575,427 Charges for services 5,751,781 - 1,705,791 7,457,572 Other revenues 4,714,118 18,958 112,741 4,845,817 Total revenues 134,390,882 9,408,425 26,571,403 170,370,710 EXPENDITURES: Current: General government 23,828,472 505,010 149,453 24,482,935 Public safety 79,671,669 2,772,519 925,717 83,369,905 Streets 14,915,556 746,343 22,737,168 38,399,067 Culture and recreation 3,225,521 1,452,776 522,314 5,200,611 Community development 4,023,568 2,787,596 191,197 7,002,361 Community service 2,735,040 864,812 115,047 3,714,899 Debt service: Principal 1,840,830 494,000 - 2,334,830 Interest and fiscal charges 943,757 257,193 - 1,200,950 Total expenditures 131,184,413 9,880,249 24,640,896 165,705,558 REVENUES OVER (UNDER) EXPENDITURES 3,206,469 (471,824) 1,930,507 4,665,152 OTHER FINANCING SOURCES (USES): Proceeds from sale of capital assets 92,029 - - 92,029 Transfers in - - 1,029,316 1,029,316 Transfers out (118,755) - (910,561) (1,029,316) Total other financing sources (uses)(26,726) - 118,755 92,029 CHANGES IN FUND BALANCES 3,179,743 (471,824) 2,049,262 4,757,181 FUND BALANCES: Beginning of year 64,540,412 18,085,335 79,934,739 162,560,486 End of year 67,720,155$ 17,613,511$ 81,984,001$ 167,317,667$ Major Funds 14.a Packet Pg. 248 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Reconciliation of the Governmental Statement of Revenues, Expenditures, and Changes in Fund Balances to the Government-Wide Statement of Activities and Changes in Net Position For the Fiscal Year Ended June 30, 2020 - 28 - The accompanying notes are an integral part of these financial statements. Net Change in Fund Balances - Total Governmental Funds 4,757,181$ Amounts reported for governmental activities in the Statement of Activities were different because: Governmental funds reported capital asset acquisitions as expenditures. However, in the Government- Wide Statement of Activities and Changes in Net Position, the cost of those assets was allocated over their estimated useful lives as depreciation expense. This was the amount of capital assets recorded in the current period.This amount did not include acquisitions for Internal Service Funds in the amount of $2,237,252.7,860,472 Depreciation expense on capital assets was reported in the Government-Wide Statement of Activities and Changes in Net Position, but they did not require the use of current financial resources. Therefore, depreciation expense was not reported as expenditures in the Governmental Funds. This amount did not include the depreciation or amortization expense for Internal Service Funds in the amounts of $99,182 and $594,633, respectively. (15,745,472) The net effect of various miscellaneous transactions involving capital assets (i.e. sales, trade-ins, and donations) decreased Net Position. (806) Repayment of long-term liabilities was an expenditures in governmental funds, but the repayment reduced long-term liabilities in the Government-Wide Statement of Net Position. This amount did not include principal payments in the internal service fund of $626,883. Principal payment of long-term debt 2,334,830 Some expenses reported in the statement of activities do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds. This amount did not include the changes in compensated absences for Internal Service Funds in the amount of $13,559. Changes in compensated absences (770,785) Changes in net pension liability reported in the Statement of Activities does not require the use of current financial resources and, therefore, is not reported as an expenditure in governmental funds. (23,634,063) The net effect of various miscellaneous transactions involving pension plans (i.e. deferred inflow/outflow amortization, contributions after measurement date) increased Net Position. (4,922,554) Interest expense on long-term debt was reported in the Government-Wide Statement of Activities and Changes in Net Position, but it did not require the use of current financial resources. This amount represented the change in accrued interest from prior year. 28,219 Internal service funds were used by management to charge the costs of certain activities to individual funds. The net revenue of internal service funds was reported with governmental activities. 1,352,245 Change in Net Position of Governmental Activities (28,740,733)$ 14.a Packet Pg. 249 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements 14.a Packet Pg. 250 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements PROPRIETARY FUND FINANCIAL STATEMENTS 14.a Packet Pg. 251 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Statement of Net Position Proprietary Funds June 30, 2020 - 29 - The accompanying notes are an integral part of these financial statements. Sewer Water Sewer Collection ASSETS Current assets: Cash and cash equivalents 34,331,900$ 46,042,899$ 20,616,598$ Accounts receivable, net 5,916,924 4,185,796 870,941 Interest receivable 41,888 118,394 47,914 Due from other governments 20,044 529,706 - Due from other funds - - - Inventories 1,814,978 - - Current portion of prepaid items 87,023 538,195 32,640 Total current assets 42,212,757 51,414,990 21,568,093 Noncurrent assets: Restricted assets: Cash and cash equivalents - capital-related fees 16,227,937 30,869,216 - Investments - Consent Decree 24,636,959 - - Interest receivable - Consent Decree 68,211 - - Prepaid insurance - Consent Decree 22,439,940 - - Advances to other fund - - - Investments in joint ventures - 24,122,214 - Non-depreciable capital assets 16,538,334 25,670,836 1,675,564 Depreciable capital assets, net 187,260,321 43,145,972 17,696,161 Total capital assets, net 203,798,655 68,816,808 19,371,725 Total noncurrent assets 267,171,702 123,808,238 19,371,725 Total assets 309,384,459 175,223,228 40,939,818 DEFERRED OUTFLOWS OF RESOURCES Pension-related deferred outflows of resources 3,518,079 2,589,210 892,469 OPEB-related deferred outflows of resources 1,510,905 1,096,146 355,507 Total deferred outflows of resources 5,028,984 3,685,356 1,247,976 Major Enterprise Funds 14.a Packet Pg. 252 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Statement of Net Position (Continued) Proprietary Funds June 30, 2020 - 30 - The accompanying notes are an integral part of these financial statements. Governmental Activities Integrated Internal Waste Total Service Funds ASSETS Current assets: Cash and cash equivalents 7,247,711$ 108,239,108$ 6,934,402$ Accounts receivable, net 125,063 11,098,724 175,638 Interest receivable 21,338 229,534 14,579 Due from other governments 19,749 569,499 - Due from other funds - - 2,826,926 Inventories - 1,814,978 182,352 Current portion of prepaid items - 657,858 50,084 Total current assets 7,413,861 122,609,701 10,183,981 Noncurrent assets: Restricted assets: Cash and cash equivalents - capital-related fees - 47,097,153 - Investments - Consent Decree - 24,636,959 - Interest receivable - Consent Decree - 68,211 - Prepaid insurance - Consent Decree - 22,439,940 - Advances to other fund 855,000 855,000 - Investments in joint ventures - 24,122,214 - Non-depreciable capital assets - 43,884,734 2,226,381 Depreciable capital assets, net - 248,102,454 682,416 Total capital assets, net - 291,987,188 2,908,797 Total noncurrent assets 855,000 411,206,665 2,908,797 Total assets 8,268,861 533,816,366 13,092,778 DEFERRED OUTFLOWS OF RESOURCES Pension-related deferred outflows of resources - 6,999,758 1,645,115 OPEB-related deferred outflows of resources - 2,962,558 - Total deferred outflows of resources - 9,962,316 1,645,115 Non-Major Enterprise 14.a Packet Pg. 253 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Statement of Net Position (Continued) Proprietary Funds June 30, 2020 - 31 - The accompanying notes are an integral part of these financial statements. Sewer Water Sewer Collection LIABILITIES Current liabilities: Accounts payable and accrued liabilities 2,528,731$ 5,918,963$ 618,096$ Payroll and related liabilities 942,184 468,938 160,267 Due to other funds 1,111,647 - 1,004,425 Interest payable 894,704 549,385 - Deposits payable 622,907 - - Compensated absences 949,354 386,167 23,376 Claims payable 1,153,028 540,926 84,437 Current portion of long term debt 860,000 665,000 - Total current liabilities 9,062,555 8,529,379 1,890,601 Noncurrent liabilities: Deposits payable 3,006,204 - - Advances from other fund - - - Unearned revenue - Consent Decree 47,145,110 - - Aggregate net pension liability 30,423,227 22,390,672 7,717,790 Net OPEB liability 6,914,632 5,016,272 1,626,897 Landfill closure liability - - - Compensated absences 237,339 96,542 5,844 Claims payable - - - Long term debt 50,174,471 32,114,150 - Total noncurrent liabilities 137,900,983 59,617,636 9,350,531 Total liabilities 146,963,538 68,147,015 11,241,132 DEFERRED INFLOWS OF RESOURCES Pension-related deferred inflows of resources 506,153 372,515 128,401 OPEB-related deferred inflows of resources 877,895 636,904 206,563 Total deferred inflows of resources 1,384,048 1,009,419 334,964 Net Position (Deficit): Net investment in capital assets 168,992,121 66,906,874 19,371,725 Unrestricted (deficit)(2,926,264) 42,845,276 11,239,973 Total net position (deficit)166,065,857$ 109,752,150$ 30,611,698$ Major Enterprise Funds 14.a Packet Pg. 254 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Statement of Net Position (Continued) Proprietary Funds June 30, 2020 - 32 - The accompanying notes are an integral part of these financial statements. Governmental Activities Integrated Internal Waste Total Service Funds LIABILITIES Current liabilities: Accounts payable and accrued liabilities 547,529$ 9,613,319$ 577,221$ Payroll and related liabilities 7,656 1,579,045 105,203 Due to other funds - 2,116,072 2,826,926 Interest payable - 1,444,089 - Deposits payable - 622,907 - Compensated absences 2,388 1,361,285 69,788 Claims payable - 1,778,391 5,107,621 Current portion of long term debt - 1,525,000 - Total current liabilities 557,573 20,040,108 8,686,759 Noncurrent liabilities: Deposits payable - 3,006,204 - Advances from other fund - - 855,000 Unearned revenue - Consent Decree - 47,145,110 - Aggregate net pension liability - 60,531,689 14,775,112 Net OPEB liability - 13,557,801 - Landfill closure liability 5,793,586 5,793,586 - Compensated absences 5,572 345,297 162,839 Claims payable - - 26,675,990 Long term debt - 82,288,621 - Total noncurrent liabilities 5,799,158 212,668,308 42,468,941 Total liabilities 6,356,731 232,708,416 51,155,700 DEFERRED INFLOWS OF RESOURCES Pension-related deferred inflows of resources - 1,007,069 245,815 OPEB-related deferred inflows of resources - 1,721,362 - Total deferred inflows of resources - 2,728,431 245,815 Net Position (Deficit): Net investment in capital assets - 255,270,720 2,908,797 Unrestricted (deficit)1,912,130 53,071,115 (39,572,419) Total net position (deficit)1,912,130$ 308,341,835$ (36,663,622)$ Non-Major Enterprise Fund 14.a Packet Pg. 255 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Statement of Revenues, Expenses, and Changes in Net Position Proprietary Funds For the Fiscal Year Ended June 30, 2020 - 33 - The accompanying notes are an integral part of these financial statements. Sewer Water Sewer Collection OPERATING REVENUES: Charges for services 39,937,495$ 29,703,284$ 7,656,675$ Other operating revenues 329,881 693,808 9,634 Total operating revenues 40,267,376 30,397,092 7,666,309 OPERATING EXPENSES: Cost of sales and services - - - Administration and customer service 6,097,981 3,795,091 1,705,699 Utility administration 2,425,676 348,819 192,763 Plant operations 7,708,374 9,797,665 483,316 Maintenance 2,528,441 3,508,534 - Environmental control - 672,836 - Distribution 4,764,259 - - Engineering and water quality control 2,641,641 369,422 4,124,631 General, administration and overhead 4,895,095 1,559,065 - Claims expense - - - Amortization - - - Depreciation 7,564,684 4,596,979 1,144,095 Total operating expenses 38,626,151 24,648,411 7,650,504 OPERATING INCOME (LOSS)1,641,225 5,748,681 15,805 NONOPERATING REVENUES (EXPENSES): Investment income 747,477 1,322,367 626,761 Rental income 245,784 - - Noncapital grants 1,991,747 - - Interest expense and fiscal charges (1,955,317) (1,313,151) - Loss on joint venture - RIX - (1,514,219) - Miscellaneous income - - - Gain (loss) on disposal of assets (25,094) - 3,003 Other 651,031 (32,176) - Total nonoperating revenues (expenses)1,655,628 (1,537,179) 629,764 INCOME (LOSS) BEFORE CAPITAL CONTRIBUTIONS 3,296,853 4,211,502 645,569 CAPITAL CONTRIBUTIONS Acquisition fees 908,685 - - Capital contributions 429,226 772,857 - Capacity fees 664,726 1,484,473 344,732 Total contributions 2,002,637 2,257,330 344,732 CHANGES IN NET POSITION 5,299,490 6,468,832 990,301 NET POSITION: Beginning of year 160,766,367 103,283,318 29,621,397 End of year 166,065,857$ 109,752,150$ 30,611,698$ Major Enterprise Funds 14.a Packet Pg. 256 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Statement of Revenues, Expenses, and Changes in Net Position (Continued) Proprietary Funds For the Fiscal Year Ended June 30, 2020 - 34 - The accompanying notes are an integral part of these financial statements. Governmental Activities Integrated Internal Waste Total Service Funds OPERATING REVENUES: Charges for services 555,920$ 77,853,374$ 20,430,645$ Other operating revenues - 1,033,323 179,314 Total operating revenues 555,920 78,886,697 20,609,959 OPERATING EXPENSES: Cost of sales and services 1,393,739 1,393,739 11,382,485 Administration and customer service - 11,598,771 - Utility administration - 2,967,258 - Plant operations - 17,989,355 - Maintenance - 6,036,975 - Environmental control - 672,836 - Distribution - 4,764,259 - Engineering and water quality control - 7,135,694 - General, administration and overhead - 6,454,160 - Claims expense - - 7,684,753 Amortization - - 594,633 Depreciation - 13,305,758 99,182 Total operating expenses 1,393,739 72,318,805 19,761,053 OPERATING INCOME (LOSS)(837,819) 6,567,892 848,906 NONOPERATING REVENUES (EXPENSES): Investment income 148,991 2,845,596 108,698 Rental income - 245,784 - Noncapital grants - 1,991,747 - Interest expense and fiscal charges - (3,268,468) (41,082) Loss on joint venture - RIX - (1,514,219) - Miscellaneous income 34,201 34,201 435,723 Gain (loss) on disposal of assets - (22,091) - Other - 618,855 - Total nonoperating revenues (expenses)183,192 931,405 503,339 INCOME (LOSS) BEFORE CAPITAL CONTRIBUTIONS (654,627) 7,499,297 1,352,245 CAPITAL CONTRIBUTIONS Acquisition fees - 908,685 - Capital contributions - 1,202,083 - Capacity fees - 2,493,931 - Total contributions - 4,604,699 - CHANGES IN NET POSITION (654,627) 12,103,996 1,352,245 NET POSITION: Beginning of year 2,566,757 296,237,839 (38,015,867) End of year 1,912,130$ 308,341,835$ (36,663,622)$ Non-Major Enterprise Fund 14.a Packet Pg. 257 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Statement of Cash Flows Proprietary Funds For the Fiscal Year Ended June 30, 2020 - 35 - The accompanying notes are an integral part of these financial statements. Sewer Water Sewer Collection CASH FLOWS FROM OPERATING ACTIVITIES: Cash received from customers 39,831,893$ 29,604,628$ 7,642,900$ Cash received from user departments - - - Nonoperating miscellaneous revenues (expenses) 651,031 (32,176) - Cash payments to suppliers for goods and services (19,356,640) (9,364,646) (7,355,094) Cash payments to employees for services (11,383,066) (5,402,899) (2,066,480) Cash payments for claims and insurance - - - Cash paid to RIX joint venture for operations - (206,181) - Cash inflows (outflows) from other activities - - - Net cash provided by (used in) operating activities 9,743,218 14,598,726 (1,778,674) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Acquisition of capital assets (9,427,069) (7,939,537) (1,245,890) Capital fees received 1,573,411 1,484,473 344,732 Proceeds from disposal of assets 2,456 - 3,003 Rental income 245,784 - - Principal paid on capital-related debt (830,000) (935,000) - Interest paid on capital-related debt (2,166,787) (1,341,322) - Net cash (used in) capital and related financing activities (10,602,205) (8,731,386) (898,155) CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Interfund (lending) borrowing - - - Consent Decree insurance drawdowns 3,259,020 - - Net cash provided by (used in) noncapital financing activities 3,259,020 - - CASH FLOWS FROM INVESTING ACTIVITIES: Investment income 808,176 1,348,025 629,947 Net cash provided (used) by investing activities 808,176 1,348,025 629,947 Net change in cash and cash equivalents 3,208,209 7,215,365 (2,046,882) CASH AND CASH EQUIVALENTS: Beginning of year 41,910,549 50,439,826 11,899,407 End of year 45,118,758$ 57,655,191$ 9,852,525$ RECONCILIATION TO STATEMENT OF NET POSITION: Cash and cash equivalents 34,331,900$ 46,042,899$ 20,616,598$ Restricted cash and cash equivalents 16,227,937 30,869,216 - Less those not meeting the definition of a cash equivalent (Note 1) (5,441,079) (19,256,924) (10,764,073) Total cash and cash equivalents 45,118,758$ 57,655,191$ 9,852,525$ Major Enterprise Funds 14.a Packet Pg. 258 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Statement of Cash Flows (Continued) Proprietary Funds For the Fiscal Year Ended June 30, 2020 - 36 - The accompanying notes are an integral part of these financial statements. Governmental Activities Integrated Internal Waste Total Service Funds CASH FLOWS FROM OPERATING ACTIVITIES: Cash received from customers 555,920$ 77,635,341$ -$ Cash received from user departments - - 20,495,000 Nonoperating miscellaneous revenues (expenses) 34,201 653,056 435,723 Cash payments to suppliers for goods and services (1,242,624) (37,319,004) (7,995,587) Cash payments to employees for services - (18,852,445) (4,175,598) Cash payments for claims and insurance - - (4,231,878) Cash paid to RIX joint venture for operations - (206,181) - Cash inflows (outflows) from other activities (19,749) (19,749) 179,314 Net cash provided by (used in) operating activities (672,252) 21,891,018 4,706,974 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Acquisition of capital assets - (18,612,496) (2,237,252) Capital fees received - 3,402,616 - Proceeds from disposal of assets - 5,459 - Rental income - 245,784 - Principal paid on capital-related debt - (1,765,000) (626,883) Interest paid on capital-related debt - (3,508,109) (6,882) Net cash (used in) capital and related financing activities - (20,231,746) (2,871,017) CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Interfund (lending) borrowing 855,000 855,000 (889,200) Consent Decree insurance drawdowns - 3,259,020 - Net cash provided by (used in) noncapital financing activities 855,000 4,114,020 (889,200) CASH FLOWS FROM INVESTING ACTIVITIES: Investment income 127,653 2,913,801 94,119 Net cash provided (used) by investing activities 127,653 2,913,801 94,119 Net change in cash and cash equivalents 310,401 8,687,093 1,040,876 CASH AND CASH EQUIVALENTS: Beginning of year 6,937,310 111,187,092 5,893,526 End of year 7,247,711$ 119,874,185$ 6,934,402$ RECONCILIATION TO STATEMENT OF NET POSITION: Cash and cash equivalents 7,247,711$ 108,239,108$ 6,934,402$ Restricted cash and cash equivalents - 47,097,153 - Less those not meeting the definition of a cash equivalent (Note 1) - (35,462,076) - Total cash and cash equivalents 7,247,711$ 119,874,185$ 6,934,402$ Non-Major Enterprise Fund 14.a Packet Pg. 259 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Statement of Cash Flows (Continued) Proprietary Funds For the Fiscal Year Ended June 30, 2020 - 37 - The accompanying notes are an integral part of these financial statements. Sewer Water Sewer Collection RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES: Operating income (loss) 1,641,225$ 5,748,681$ 15,805$ Nonoperating miscellaneous revenues (expenses) 651,031 (32,176) - Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities: Depreciation and amortization 7,564,684 4,596,979 1,144,095 Changes in operating assets and liabilities: Accounts receivable, net (532,228) (621,558) (23,409) Due from other governments (7,422) (170,906) - Inventories 69,587 - - Prepaid items 586,065 80,517 1,777 Due from other funds - - - RIX Joint Venture - (206,181) - Pension-related deferred outflows of resources (719,575) (480,722) (162,944) OPEB-related deferred outflows of resources 360,949 (152,010) (113,580) Accounts payable and accrued liabilities (202,843) 5,028,529 (1,406,410) Payroll and related liabilities 197,148 (46,364) (13,004) Due to other funds (1,436,344) - (1,286,730) Deposits payable 104,167 - - Landfill closure liability - - - Aggregate net pension liability 2,194,320 1,122,054 358,969 Net OPEB liability (274,312) (303,319) (242,149) Compensated absences 194,470 119,120 8,309 Claims payable (730,524) (125,234) (55,783) Pension-related deferred inflows of resources 119,432 81,147 27,589 OPEB-related deferred inflows of resources (36,612) (39,831) (31,209) Total adjustments 7,450,962 8,882,221 (1,794,479) Net cash provided by (used in) operating activities 9,743,218$ 14,598,726$ (1,778,674)$ NON-CASH FROM CAPITAL AND RELATED FINANCING ACTIVITIES Capital contributions 429,226$ 772,857$ -$ Non-cash from capital and related financing activities 429,226$ 772,857$ -$ Major Enterprise Funds 14.a Packet Pg. 260 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Statement of Cash Flows (Continued) Proprietary Funds For the Fiscal Year Ended June 30, 2020 - 38 - The accompanying notes are an integral part of these financial statements. Activities Integrated Internal Waste Total Service Funds RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES: Operating income (loss) (837,819)$ 6,567,892$ 848,906$ Nonoperating miscellaneous revenues (expenses) 34,201 653,056 435,723 Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities: Depreciation and amortization - 13,305,758 693,815 Changes in operating assets and liabilities: Accounts receivable, net - (1,177,195) 416,688 Due from other governments (19,749) (198,077) - Inventories - 69,587 7,638 Prepaid items - 668,359 (47,600) Due from other funds - - (650,250) RIX Joint Venture - (206,181) - Pension-related deferred outflows of resources - (1,363,241) (352,816) OPEB-related deferred outflows of resources - 95,359 - Accounts payable and accrued liabilities 503,618 3,922,894 (1,167,613) Payroll and related liabilities (187) 137,593 (30,730) Due to other funds - (2,723,074) 297,917 Deposits payable - 104,167 - Landfill closure liability (356,550) (356,550) - Aggregate net pension liability - 3,675,343 735,384 Net OPEB liability - (819,780) - Compensated absences 4,234 326,133 13,559 Claims payable - (911,541) 3,452,875 Pension-related deferred inflows of resources - 228,168 53,478 OPEB-related deferred inflows of resources - (107,652) - Total adjustments 131,366 14,670,070 3,422,345 Net cash provided by (used in) operating activities (672,252)$ 21,891,018$ 4,706,974$ NON-CASH FROM CAPITAL AND RELATED FINANCING ACTIVITIES Capital contributions -$ 1,202,083$ -$ Non-cash from capital and related financing activities -$ 1,202,083$ -$ Enterprise Fund 14.a Packet Pg. 261 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements 14.a Packet Pg. 262 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements FIDUCIARY FUND FINANCIAL STATEMENTS 14.a Packet Pg. 263 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Statement of Fiduciary Net Position Fiduciary Funds June 30, 2020 - 39 - The accompanying notes are an integral part of these financial statements. Successor Agency To the Economic Development Agency of San Bernardino Agency Private-purpose Funds Trust Fund ASSETS Cash and investments 8,148,028$ 15,621,079$ Cash and investments with fiscal agents - 18,470,150 Receivables: Accounts 42,250 150,606 Interest - 21,768 Notes - - Due from other governments - - Due from City - 2,232,925 Prepaids - 463,912 Property held for resale - 9,177,803 Total assets 8,190,278$ 46,138,243 DEFERRED OUTFLOWS OF RESOURCES Pension-related deferred outflows of resources 1,051,888 Deferred loss on refunding of bonds 1,260,446 Total deferred outflows of resources 2,312,334 LIABILITIES Accounts payable 276,866$ 59,123 Accrued liabilities - 5,585 Retentions payable - 146,606 Deposits payable 7,765,779 4,532 Interest payable - 706,313 Due to bondholders 147,633 - Compensated absences - 115,525 Aggregate net pension liability - 6,660,395 Long-term debt - 65,746,170 Total liabilities 8,190,278$ 73,444,249 DEFERRED INFLOWS OF RESOURCES Pension-related deferred inflows of resources 613,621 Total deferred inflows of resources 613,621 NET POSITION (DEFICIT) Held in trust (25,607,293) Total net position (deficit)(25,607,293)$ 14.a Packet Pg. 264 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Statement of Changes in Fiduciary Net Position Fiduciary Funds For the Fiscal Year Ended June 30, 2020 - 40 - The accompanying notes are an integral part of these financial statements. Successor Agency to the Economic Development Agency of San Bernardino Private-purpose Trust Fund ADDITIONS: Property taxes 15,694,431$ Investment income 408,246 Lease revenue 10,002 Other revenues 184,594 Total additions 16,297,273 DEDUCTIONS: Redevelopment 1,771,328 Debt service - interest and fiscal charges 3,686,147 Loss on disposition of capital assets 128,680 Total deductions 5,586,155 Changes in Net Position 10,711,118 NET POSITION (DEFICIT): Beginning of period (36,318,411) End of period (25,607,293)$ 14.a Packet Pg. 265 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements 14.a Packet Pg. 266 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements NOTES TO THE BASIC FINANCIAL STATEMENTS 14.a Packet Pg. 267 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Index of Notes to the Basic Financial Statements For the Fiscal Year Ended June 30, 2020 NOTE DESCRIPTION PAGE 1 Summary of Significant Accounting Policies 41 2 Cash and Investments 54 3 Notes Receivable 59 4 Interfund Receivables, Payables, and Transfers 60 5 Property Held for Resale 61 6 Capital Assets 61 7 Long-Term Liabilities 63 8 Compensated Absences 81 9 Claims and Judgments Payable 82 10 Pension Plans 83 11 Other Postemployment Benefits 99 12 Other Required Disclosures 105 13 Fund Balance Classification 106 14 Net Investments in Capital Assets 107 15 Landfill Closure Liability 107 16 Successor Agency Trust for Assets of Former Redevelopment Agency 107 17 Consent Decree 108 18 Jointly Governed Organizations and Joint Ventures 109 19 Commitments and Contingencies 111 20 Subsequent Events 112 14.a Packet Pg. 268 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Notes to the Basic Financial Statements For the Fiscal Year Ended June 30, 2020 - 41 - Note 1 – Summary of Significant Accounting Policies The basic financial statements of the City of San Bernardino, California (City) have been prepared in conformity with Generally Accepted Accounting Principles of the United States of America (U.S. GAAP) as applied to governmental agencies. The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting standards in the United States. The more significant of the City’s accounting policies are described below. A. Financial Reporting Entity The City was incorporated on April 13, 1854, as a Charter City. The City operates under a Council-Manager form of government and provides the following services: public safety (police), highways and streets, health and social services, culture and recreation, public improvements, community development (planning, building and zoning), public utilities (water and sewage), and general administrative services. In addition, the City operates the San Bernardino Municipal Water Department (including Water, Sewer, and Sewer Collection Enterprise Funds). Component Units The financial statements present the City and its component units, entities for which the City is financially accountable. Component units are entities for which the City is considered to be financially accountable, in accordance with generally accepted accounting principles. 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 (1) it is able to impose its will on that organization, or (2) there is a potential for the organization to provide specific financial benefits to or impose specific financial burdens on the City. The City is also considered to be financially accountable if an 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. Blended component units, although legally separate entities, are, in substance, part of the City’s operations, and data from these units are combined with data of the primary government. Discretely presented component units, on the other hand, are reported in a separate column in the combined financial statements to emphasize that they are legally separate from the government. Based on the criteria above, the City has three blended component units. The City has no component units that meet the criteria for discrete presentation. The three component units are described as follows: 14.a Packet Pg. 269 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Notes to the Basic Financial Statements For the Fiscal Year Ended June 30, 2020 - 42 - Note 1 – Summary of Significant Accounting Policies (Continued) A. Financial Reporting Entity (Continued) Blended Component Units San Bernardino Municipal Water Department (SBMWD) The San Bernardino Municipal Water Department and the Board of Water Commissioners (“Board”) were established on May 8th, 1905 by the Mayor and Common Council of San Bernardino in accordance with the provisions specified in the City charter. The board is appointed by the Mayor and approved by City Council, has Charter defined powers, with full authority for administration of the water utility and delegated authority for the sewer treatment utility. The Board assembled for the first time on May 16th, 1905 to meet the water supply needs of the community by providing trusted, quality service to our customers. This service has grown through the years to include: water supply, water reclamation, geothermal heating supply, sewer collection and administrative support for our growing citizens. On April 1, 2017 the City transferred operational management and the related assets of the sewer collection system to SBMWD. Separately issued financial reports are available for SBMWD. These reports may be obtained by contacting SBMWD, 1350 South E Street, San Bernardino, CA 92408. Affordable Housing Solutions of San Bernardino, Inc. (AHS) On December 16, 2009, the Economic Development Agency (EDA) acquired the Global Mobile Home Park Corporation, a not-for-profit corporation (501(c)(3)), from the Redevelopment Agency of the City of Pomona for the redevelopment purposes of the EDA as authorized by Resolution 2009-16 of the Community Development Commission of the City of San Bernardino on May 4, 2009, and approved on May 5, 2009. The Mayor and Common Council of the City of San Bernardino serve ex officio as the chairperson and members of the Community Development Commission of the City of San Bernardino, respectively. On September 23, 2009, the Corporation amended its Articles of Incorporation to rename the Corporation the “Affordable Housing Solutions of San Bernardino Inc.” (AHS), which was endorsed and filed in the office of the Secretary of State of the State of California on October 9, 2009. AHS is not currently active and has no assets. San Bernardino Joint Powers Financing Authority (Authority) The San Bernardino Joint Powers Financing Authority (Authority) was established pursuant to a Joint Exercise of Powers Agreement dated August 21, 1989, by and between the City and the EDA. The EDA was dissolved during fiscal year 2012 and the Successor Agency to the San Bernardino EDA is now a member of the JPFA along with the City. The Authority was created for the purpose of providing financing for redevelopment activities for the City, the EDA, or other local agencies in the State of California, the acquisition, construction or installation by the Authority of public capital improvements and/or the purchase by the Authority of public obligations within the meaning of the Marks-Roos Act. The Authority is authorized pursuant to the Marks-Roos Act to borrow money for the purpose of financing the acquisition of bonds, notes and other obligations of, or for the purpose of making loans to, the City, the EDA, or such other local agencies to provide financing for redevelopment activities of the City or the EDA. The Authority is governed by a board composed of the City's elected officials. There are no separate financial statements issued for the Authority. 14.a Packet Pg. 270 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Notes to the Basic Financial Statements For the Fiscal Year Ended June 30, 2020 - 43 - Note 1 – Summary of Significant Accounting Policies (Continued) B. Government-Wide and Fund Financial Statements The government-wide financial statements, consisting of the Statement of Net Position and the Statement of Activities, report information on all of the nonfiduciary activities of the City and its component units. Interfund activity has been removed from these statements except for utility charges, as this would distort the presentation of function costs and program revenues. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business type activities, which rely to a significant extent on fees and charges for support. The Statement of Net Position presents financial information on all of the City’s assets, liabilities, and deferred inflows/outflows of resources, with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. The Statement of Activities demonstrates the degree to which the direct expenses of given functions or segments are offset by program revenues. Direct expenses are expenses that are clearly identifiable with a specific program, project, function or segment. Program revenues of the City include: 1) charges to customers or applicants who purchase, use or directly benefit from goods, services or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items that are not properly included among program revenues are reported instead as general revenues. Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation The accounting and financial reporting treatment is determined by the applicable measurement focus and basis of accounting. Measurement focus indicates the type of resources being measured such as current financial resources or economic resources. The basis of accounting indicates the timing of transactions or events for recognition in the financial statements. The government-wide, proprietary, and private-purpose trust fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. The agency funds have no measurement focus but utilize the accrual basis of accounting for reporting assets and liabilities Under the economic resources measurement focus, all assets (current and long-term), deferred outflows of resources, liabilities (current and long-term), and deferred inflows of resources are reported. Under the accrual basis of accounting, revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied on the property. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the providers have been met. 14.a Packet Pg. 271 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Notes to the Basic Financial Statements For the Fiscal Year Ended June 30, 2020 - 44 - Note 1 – Summary of Significant Accounting Policies (Continued) C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued) In addition to assets, the statement of net position will generally report a separate section for deferred outflows of recourses, which represent a 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. In addition to liabilities, the statement of net position will generally report a separate section for deferred inflows of resources, which represent 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. Amounts reported as program revenues include: 1) charges to customers or applicants for goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes. During the course of operations, the government has activity between funds for various purposes. Any residual balances outstanding at year-end are reported as due from/to other funds and advances to/from other funds. While these balances are reported in fund financial statements, certain eliminations are made in the preparation of the government-wide financial statements. Balances between the funds included in governmental activities (i.e. the governmental and internal service funds) are eliminated so only the net amount is included as internal balances in the governmental activities column. Balances between the governmental activities and the business-type activities are presented as internal balances and eliminated in the total primary government column. Further, certain activity occurs during the year involving transfers of resources between funds. In fund financial statements, these amounts are reported at gross amounts as transfers in/out. While reported in fund financial statements, certain eliminations are made in the preparation of the government-wide financial statements. Transfers between the funds included in governmental activities are eliminated so only the net amount is included as transfers in the governmental activities column. Transfers between governmental activities and the business-type activities are eliminated in the total primary government column. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under the current financial resources measurement focus, generally only current assets and current liabilities are reported in the governmental funds. Governmental fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Under the modified accrual basis of accounting, revenues are recognized as soon as they are both measurable and available. Revenues are considered available when they are collected 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. Reimbursements under state and federal grants are accrued if received within 180 days of the end of the fiscal period to enable the matching of revenue with applicable expenditures. Expenditures generally are recorded when a liability is incurred, under accrual accounting. However, expenditures for debt service and compensated absences are recorded only when payment is due. General capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term liabilities are reported as other financing sources. 14.a Packet Pg. 272 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Notes to the Basic Financial Statements For the Fiscal Year Ended June 30, 2020 - 45 - Note 1 – Summary of Significant Accounting Policies (Continued) C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued) Property taxes, special assessments, sales taxes, franchise taxes, transient occupancy taxes, gas taxes, vehicle license fees, charges for services, amounts due from other governments, and interest associated with the current fiscal period are all considered to be susceptible to accrual. Other revenue items such as fines and permits are considered to be measurable and available only when the government receives cash and are therefore not susceptible to accrual. The City reports the following major governmental funds: General Fund – This is the primary operating fund of the City. It accounts for all activities of the general government, except those required to be accounted for in another fund. Federal and State Grants Fund – This fund is used to report various grants awarded to the City by Federal, State, and local governments not otherwise accounted for in the General Fund or Capital Projects funds. A detailed report by program is available under a separate report meeting the criteria of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, for all federal grants received by the City. The City reports the following major proprietary funds: Water Fund – This fund is used to account for the provision of water services to the residential, commercial, and industrial segments of the City. All activities necessary to provide such services are accounted for in this fund, including, but not limited to, administration, operations, maintenance, financing and related debt service, and billing and collection. Sewer Fund – This fund is used to account for the provision of wastewater treatment to residential, commercial, and industrial segments of the City. All activities necessary to provide such services are accounted for in this fund, including, but not limited to, administration, operations, maintenance, financing and related debt service, and billing and collection. Sewer Collection Fund – This fund is used to account for the provision of wastewater collection to residential, commercial, and industrial segments of the City. All activities necessary to provide such services are accounted for in this fund, including, but not limited to, administration, operations, maintenance, financing and related debt service, and billing and collection. Additionally, the government reports the following fund types: Governmental Funds Special Revenue Funds account for proceeds of specific revenue sources that are legally restricted or otherwise committed or assigned for specific purposes. 14.a Packet Pg. 273 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Notes to the Basic Financial Statements For the Fiscal Year Ended June 30, 2020 - 46 - Note 1 – Summary of Significant Accounting Policies (Continued) C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued) Debt Service Funds account for the accumulation of resources and payment of long-term liabilities of the City and related entities. Capital Projects Funds account for financial resources used for the acquisition or construction of major capital facilities and circulation infrastructure. Proprietary Funds Internal Service Funds account for operations that provide services to other departments of the City on a cost reimbursement basis. These services include workers’ compensation, liability insurance, replacement and maintenance of the City’s vehicle fleet, and information technology systems. Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the City’s enterprise and internal service funds are charges to customers for sales and services. Operating expenses for enterprise and internal service funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses. Fiduciary Funds The Successor Agency to the Economic Development Agency of San Bernardino Private-Purpose Trust Fund accounts for the assets and liabilities of the former Economic Development Agency and is allocated revenue to pay estimated installment payments of enforceable obligations until obligations are paid in full and assets have been liquidated. Agency Funds are used to account for money and property held by the City as trustee or custodian. The City establishes Agency Funds to account for money and property held by the City as trustee or custodian. Such funds include the Special Deposits Fund and the Cemetery Perpetual Care Fund. Agency Funds are also used to account for various assessment districts for which the City acts as an agent for debt service activity, as the City is prohibited from levying additional taxes for these districts. Such funds include Assessment Districts #977A, #977B, and #1003. The Agency Funds are custodial in nature (assets equal liabilities) and do not involve measurement of results of operations. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the City’s own programs. D. Cash, Cash Equivalents, and Investments The City values its cash and investments in accordance with the provisions of Governmental Accounting Standards Board Statement No. 72 (GASB 72), Fair Value Measurement and Application, which requires governmental entities to use valuation techniques that are appropriate under the circumstances and for which sufficient data are available to measure fair value. The techniques should be consistent with one or more of the following approaches: the market approach, the cost approach, or the income approach. 14.a Packet Pg. 274 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Notes to the Basic Financial Statements For the Fiscal Year Ended June 30, 2020 - 47 - Note 1 – Summary of Significant Accounting Policies (Continued) D. Cash, Cash Equivalents, and Investments (Continued) Cash accounts of all funds are pooled for investment purposes to enhance safety and liquidity while maximizing interest earnings. Investments are stated at fair value except for investments in investment contracts which are recorded at contract value. Securities traded on a national or international exchange are valued at the last reported sales price at current exchange rates or fair market value when market quotations are readily available. Cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term investments with original maturities of three months or less from the date of acquisition. Changes in fair value that occur during a fiscal year are recognized as investment income reported for that fiscal year, and may result in negative investment income in the accompanying financial statements. Investment income is allocated to the various funds based on each fund’s average month-end cash balance and includes interest earnings, changes in fair value, and any gains or losses realized upon the liquidation, maturity, or sale of investments. For purposes of the statement of cash flows, amounts reported as cash and cash equivalents, include amounts on deposit in the City pool and any 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. E. Restricted Assets Amounts reported as restricted assets in the enterprise funds have been restricted by bond indentures or are to be used for specified purposes based on contract provisions, such as bonded debt service. F. Receivables and Payables Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either “due to/from other funds” or “advances to/from other funds” (i.e. the current portion of interfund loans). Any residual balances outstanding between the governmental activities and business-type activities are reported in the Governmental-Wide Financial Statements as “internal balances.” G. Notes Receivable Long-term notes receivable consist of loans to developers to assist in the stimulation of affordable housing projects, rehabilitation loans to low income individuals that need assistance in rehabilitating their homes, and first time buyers assistance loans. Loan repayment terms range from due at the sale of the property to 60 years. A majority of the loans to the developers will be paid from residual rental receipts earned on the affordable housing property. Due to the long-term nature and contingent repayment requirements for some of the loans, an allowance for doubtful accounts has been estimated, however, actual results can differ from the estimates. In the governmental funds financial statements, disbursements for providing these revolving loan receivables are recorded as expenditures while the collection of these receivables are recorded as revenue. Due to the requirement of the granting agency, these receivable collections must be utilized for the purpose of the grant requirements. For further details, see Note 3 below. 14.a Packet Pg. 275 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Notes to the Basic Financial Statements For the Fiscal Year Ended June 30, 2020 - 48 - Note 1 – Summary of Significant Accounting Policies (Continued) H. Inventory Inventories are valued on the average cost method, which approximates a first-in, first-out (FIFO) basis. Inventory balances represent expendable supplies held for consumption. Inventory is reported under the consumption method whereby expenditures are reported at the time inventory is used. Inventory is reported in governmental funds at cost and is offset with nonspendable fund balance to show that inventories do not constitute available spendable resources. I. Prepaid Items Certain payments to vendors for costs applicable to future accounting periods are recorded as prepaid items in both government-wide and fund financial statements using the consumption method. Prepaid items are reported as a nonspendable component of fund balance to indicate that they are not spendable for appropriation and are not expendable financial resources. J. Property Held for Resale Property held for resale represents land, structures, and related improvements that were acquired for resale as part of the City’s redevelopment and grant activities. Property held for resale is accounted for is recorded at lower of cost or net realizable value in accordance with accounting principles generally accepted in the United States of America. Property held for resale, which is not available for current expenditure, is reported in the governmental funds balance sheet as restricted fund balance when proceeds from the sale must be used for restricted purposes or as nonspendable fund balance when such proceeds are not restricted. K. Capital Assets Capital assets, which include land, buildings and improvements, machinery, vehicles, equipment (including furniture) and infrastructure assets, are reported in the applicable activity columns in the accompanying government-wide statement of net position and the proprietary funds statement of net position. Capital assets are defined by the government as land, buildings and improvements, machinery, vehicles, or equipment assets with an initial individual cost of more than $5,000 and a useful life of at least two years. Infrastructure assets, consisting of certain improvements other than buildings, including pavement, curbs and gutters, streets and sidewalks, drainage systems, traffic control devices, streetlights, and right-of-way corridors within the City, are capitalized if the initial individual cost exceeds $200,000. Capital assets are recorded at cost where historical records are available and at an estimated original cost where no historical records exist. Donated capital assets, donated works of art and similar items, and capital assets received pursuant to a service concession arrangement are recorded at their acquisition value at the date of the contribution. The cost of normal maintenance and repairs that do not add to the value of the assets or materially extend asset lives are not capitalized. Capital outlays are recorded as expenditures in the governmental funds and as assets in the government-wide financial statements to the extent the City’s capitalization thresholds are met. Major outlays for capital assets and improvements are capitalized as construction in progress as projects are constructed. 14.a Packet Pg. 276 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Notes to the Basic Financial Statements For the Fiscal Year Ended June 30, 2020 - 49 - Note 1 – Summary of Significant Accounting Policies (Continued) K. Capital Assets With the exception of land, capital assets used in operations are depreciated over their estimated useful lives using the straight-line method in the government-wide financial statements and in the financial statements of the proprietary funds. Depreciation is charged as an expense against operations and accumulated depreciation is reported on the respective statement of net position. The City has elected to use the Basic Approach for reporting its infrastructure systems. The ranges of lives used for depreciation purposes for each capital asset class are: Years Buildings and improvements 10 - 40 Infrastructure 20 - 50 Wells, pumping plants, reservoirs, and distribution system 8 - 50 Interceptor lines 50 Disposal plant 35 - 50 Leasehold improvements 5 - 25 Shops, office, stores and yards 10 - 20 Tools and equipment 4 - 20 Office equipment 5 - 20 Communication equipment 7 - 10 Computer equipment 5 - 10 Automotive equipment 3 - 8 L. Compensated Absences Vacation pay is payable to employees at the time used or upon termination of employment. Sick leave accrued but unused is cumulative from year to year. In accordance with negotiated labor agreements, employees are allowed to cash out sick leave hours over certain balances once a year and upon termination. All vacation pay and applicable sick leave is accrued when incurred in the government-wide, proprietary, and fiduciary fund financial statements. The current portion of the liability is estimated from prior year payments and adjusted for material expected variances. A liability for these amounts is reported in the governmental funds only if they have matured, for example, as a result of employee resignations and retirements. For governmental funds, the General Fund is typically used to liquidate compensated absences. M. Long-Term Debt For the government-wide financial statements and proprietary fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fun type statements of net position. Bond premiums and discounts are deferred and amortized over the life of the bonds using the straight-line method. Bonds payable are reported net of the applicable bond premium or discount. 14.a Packet Pg. 277 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Notes to the Basic Financial Statements For the Fiscal Year Ended June 30, 2020 - 50 - Note 1 – Summary of Significant Accounting Policies (Continued) M. Long-Term Debt (Continued) In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. N. Claims and Judgments Payable Claims and judgments payable are recognized when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. Such claims, including an estimate for claims incurred but not reported at year end, are recorded as liabilities in the general liability and workers’ compensation internal service funds. As of June 30, 2020, the City had an obligation related to claims and judgments which is reflected as a liability on the government-wide statements and is more fully described in Note 9. O. Pension Plans For purposes of measuring the net pension liability, deferred outflow of resources and deferred inflow of resources related to pensions and pension expense, information about the fiduciary net position of the plans, and additions to/deductions from the plans’ fiduciary net position have been determined on the same basis as they are reported by the plans (see Note 10). For this purpose, benefit payments (including refunds of employee contributions) are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value. The General Fund and Internal Service Funds are typically used to liquidate the pension liability related to the City’s governmental activities while the pension liability for Business-type activities is liquidated from the Enterprise Funds. Governmental Accounting Standards Board (GASB) Statement No. 68 requires that the reported results must pertain to liability and asset information within certain defined timeframes. For this report, the following timeframes are used: Valuation Date June 30, 2018 Measurement Date June 30, 2019 Measurement Period: July 1, 2018 to June 30, 2019 P. Other Postemployment Benefits (OPEB) For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the City’s plan (OPEB Plan) and additions to/deductions from the OPEB Plan’s fiduciary net position have been determined on the same basis. For this purpose, benefit payments are reported at fair value. The Enterprise Funds are used to liquidate the OPEB liability. 14.a Packet Pg. 278 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Notes to the Basic Financial Statements For the Fiscal Year Ended June 30, 2020 - 51 - Note 1 – Summary of Significant Accounting Policies (Continued) P. Other Postemployment Benefits (OPEB) GASB Statement No. 75 requires that the reported results must pertain to liability and asset information within certain defined timeframes. For this report, the following timeframes are used: Valuation Date June 30, 2018 Measurement Date June 30, 2019 Measurement Period: July 1, 2018 to June 30, 2019 Q. Fund Balances In the fund financial statements, governmental fund balance is made up of the following components: Nonspendable Fund Balance includes amounts that cannot be spent because they are either not spendable in physical form (such as inventory) or that are legally or contractually required to be maintained intact (such as endowments). Restricted Fund Balance includes amounts that can be spent only for specific purposes imposed by creditors, grantors, contributors, or laws or regulations of other governments or through enabling legislations. Committed Fund Balance includes amounts that can only be used for specific purposes due to formal action of the City Council through adoption of a resolution prior to the end of the fiscal year. Once adopted, the limitation imposed by resolution remains in place until a similar action is taken (the adoption of another resolution) to remove or revise the limitation. The City Council approved the General Fund Reserve Policy, setting a 15% minimum in the Emergency Reserve and 10% in the Economic Contingency Reserve. The Emergency Reserve was established for the purpose of addressing any extremely unusual and infrequent occurrences, such as a major natural disaster or a major unforeseen settlement or judgment. Utilization of the Emergency Reserve may only occur after the declaration of an emergency by a majority of the City Council. The Economic Contingency Reserve was established for the purpose of providing a mechanism to allow for a measured and thoughtful reduction in expenditures during times of economic downturn. Utilization of the Economic Contingency Reserve requires approval by a majority of the City Council. The reserves committed at June 30, 2020 were calculated utilizing fiscal year 2019-2020 adopted General Fund expenditure budget of $126,827,000. Assigned Fund Balance includes amounts that are constrained by an intent to be used for a specific purpose but are neither restricted nor committed. Through the City Council’s adoption of the budget and subsequent budget adjustments throughout the year, the City assigns the specific purpose of the funding. 14.a Packet Pg. 279 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Notes to the Basic Financial Statements For the Fiscal Year Ended June 30, 2020 - 52 - Note 1 – Summary of Significant Accounting Policies (Continued) Q. Fund Balances (Continued) Unassigned Fund Balance is the residual classification that includes all spendable amounts in the General Fund not contained in other classifications. In other governmental funds, the unassigned classification reports a deficit balance resulting from overspending for specific purposes for which amounts had been restricted, committed or assigned. The City considers restricted fund balances to have been spent when an expenditure is incurred for the purposes for which both unrestricted and restricted fund balance is available. The City considers unrestricted fund balances to have been spent when an expenditure is incurred for the purposes for which amounts in any of the unrestricted classifications of fund balance could be used. When expenditures are incurred for purposes for which both restricted and unrestricted (committed, assigned or unassigned) fund balances are available, the City’s policy is to apply restricted first. When expenditures are incurred for purposes for which committed, assigned or unassigned fund balances are available, the City’s policy is to apply committed fund balance first, then assigned fund balance, and finally, unassigned fund balance. R. Net Position In the governmental-wide financial statement and proprietary fund financial statements, net positions are classified as follows: Net Investment in Capital Assets consists of capital assets, net of accumulated depreciation and reduced by outstanding debt attributed to the acquisition, construction, or improvement of the assets. Restricted Net Position is restricted by external creditors, grantors, contributors, or laws or regulations of other governments. Unrestricted Net Position is all resources that do not meet the definition of “net investment in capital assets” or “restricted net position.” When both restricted and unrestricted resources are available for use, the City’s policy is to use restricted resources first, and then unrestricted resources as they are needed. S. Property Taxes Under California law, general property taxes are assessed for up to 1% of the property’s assessed value. General property taxes are collected by the counties along with other special district taxes and assessments and voter-approved debt. General property tax revenues are collected and pooled by the County throughout the fiscal year and then allocated and paid to the County, cities, and school districts based on complex formulas prescribed by State statutes. 14.a Packet Pg. 280 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Notes to the Basic Financial Statements For the Fiscal Year Ended June 30, 2020 - 53 - Note 1 – Summary of Significant Accounting Policies (Continued) S. Property Taxes (Continued) Property taxes are calculated on assessed values as of January 1 for the ensuing fiscal year. On January 1 of the fiscal year the levy is placed and a lien is attached to the property. Property taxes are due in two installments. The first installment is due November 1 and is delinquent after December 10. The second installment is due February 1 and is delinquent after April 10. The City generally accrues only those taxes which are received within sixty days after the year-end. On June 30, 2016, the City transferred assets and liabilities comprising its fire service operations to the San Bernardino County Fire Protection District (SBCFPD) for the purpose of regionalization of fire services. As a result of the transfer, the City is required to transfer annual revenues from property taxes and 35 percent of its annual property tax in lieu of Vehicle License Fee (VLF) revenue to SBCFPD. Beginning July 1, 2017, the County’s VLF portion was reduced to 26.5 percent. T. Unearned Revenue Unearned revenues arise when the government receives resources before it has a legal claim to them, as when grant monies are received prior to meeting all eligibility requirements. In subsequent periods, when both revenue recognition criteria are met, or when the government has a legal claim to the resources, revenue is recognized. U. Encumbrances Encumbrance accounting, under which purchase orders, contracts, and other commitments for the expenditure of funds are recorded in order to reserve that portion of the applicable appropriation, is employed in all governmental funds. Amounts encumbered at the end of the current fiscal year that are not included in restricted or committed fund balance shall be considered assigned and will be reported by function. Encumbrances are not included in reported expenditures. These encumbrances are not separately classified in the financial statements and are summarized at June 30, 2020 as follows: Amount General Fund 818,476$ Federal and State Grants Fund 1,559,466 Other governmental funds 2,639,561 Total 5,017,503$ 14.a Packet Pg. 281 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Notes to the Basic Financial Statements For the Fiscal Year Ended June 30, 2020 - 54 - Note 1 – Summary of Significant Accounting Policies (Continued) V. Deferred Outflows and Deferred Inflows of Resources When applicable, the statement of net position and the balance sheet will report a separate section for deferred outflows of resources. Deferred outflows of resources represent outflows of resources (consumption of net position) that apply to future periods and that, therefore will not be recognized as an expense or expenditure until that time. Conversely, deferred inflows of resources represent inflows of resources (acquisition of net position) that apply to future periods and that, therefore, are not recognized as an inflow of resources (revenue) until that time. W. Use of Accounting Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Specifically, the City has made certain estimates and assumptions related to the collectability of its receivables (i.e. accounts receivable, intergovernmental receivables, and notes receivable), the depreciation of its capital assets and infrastructure networks, and the ultimate outcome of claims and judgments. Actual results could differ from those estimates. Note 2 – Cash and Investments Cash and investments, as of June 30, 2020, are classified in the accompanying financial statements as follows: Fiduciary Funds Governmental Business-Type Statement of Activities Activities Total Net Position Total Cash and investments 106,811,575$ 108,239,108$ 215,050,683$ 23,769,107$ 238,819,790$ Cash and investments with fiscal agent 56,304 - 56,304 18,470,150 18,526,454 Restricted cash - 47,097,153 47,097,153 - 47,097,153 Restricted investment - Consent Decree (Note 17)- 24,636,959 24,636,959 - 24,636,959 Total cash and investments 106,867,879$ 179,973,220$ 286,841,099$ 42,239,257$ 329,080,356$ Government-Wide Statement of Net Position Cash and investments, as of June 30, 2020, consist of the following: Cash: Cash on hand 12,115$ Deposits with financial institution 55,406,780 Total cash 55,418,895 Investments: Investments 183,400,895 Investments held by bond trustee 90,260,566 Total investments 273,661,461 Total cash and investments 329,080,356$ 14.a Packet Pg. 282 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Notes to the Basic Financial Statements For the Fiscal Year Ended June 30, 2020 - 55 - Note 2 – Cash and Investments (Continued) A. Investments Authorized by the California Government Code and the City’s Investment Policy The table on the following page identifies the investment types that are authorized for the City by the California Government Code and the City’s investment policy. The table also identifies certain provisions of the California Government Code (or the City’s investment policy, if 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 of the City, rather than the general provisions of the California Government Code or the City’s investment policy. Maximum Maximum Maximum Percentage Investment in Authorized Investment Types Maturity of Portfolio One Issuer* United States Treasury Obligations 5 years None None United States Federal Agency securities 5 years None None Bonds, Notes or Registered Warrants Issue by the State of California or Local Agencies within the State of California 5 years None None Bankers' Acceptances 180 days 40% 30% Commercial Paper 270 days 25% 10% Negotiable Certificates of Deposit 5 years 30% None Time Certificates of Deposit N/A 25% None Medium-term Corporates Notes 5 years 30% 15% Money Market Mutual Funds N/A 20% 10% Mortgage Pass - through Securities 5 years 20% None Local Agency Investment (LAIF) N/A None $50 million * Based on state law requirements or City investment policy requirements, whichever is more restrictive. B. Investments Authorized by Debt Agreements Investments of debt proceeds held by bond trustee are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the City’s investment policy. The table on the following page identifies the investment types that are authorized for investments held by bond trustee. The table also identifies certain provisions of these debt agreements that address interest rate risk, credit risk, and concentration of credit risk. 14.a Packet Pg. 283 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Notes to the Basic Financial Statements For the Fiscal Year Ended June 30, 2020 - 56 - Note 2 – Cash and Investments (Continued) B. Investments Authorized by Debt Agreements (Continued) Maximum Maximum Maximum Percentage Investment in Authorized Investment Types Maturity Allowed One Issuer United States Treasury Obligations None None N/A United States Federal Agency Securities None None None Bonds, Notes or Registered Warrants Issued by the State of California or Local Agencies within the State of California 5 yrs None None Bankers' Acceptances 180-360 days None None Commercial Paper 90-180 days None None Medium-term Corporate Notes None None None Money Market Mutual Funds N/A None None Investment Contracts None None None C. Disclosures Relating to Interest Rate Risk Interest rate risk is the risk that changes in market interest will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. One of the ways that the City manages its exposure to interest rate risk is by purchasing a combination of shorter term and longer term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations. Information about the sensitivity of the fair values of the City’s investments (including investments held by bond trustee) to market interest rate fluctuations is provided by the following table that shows the distribution of the City’s investments by maturity: Investment Type Total 1 year or fewer 1 to 2 years Over 2 years Local Agency Investment Fund 72,554,551$ 72,554,551$ -$ -$ Commercial paper 499,619 499,619 - - Money market mutual funds 1,868,602 1,868,602 - - Certificates of deposit 8,523,654 3,358,069 2,735,859 2,429,726 Non-U.S. government and supranational bonds 2,458,249 - - 2,458,249 Federal agency securities 66,889,419 14,251,502 21,743,369 30,894,548 U.S. Treasury obligations 31,030,949 1,015,430 7,436,945 22,578,574 Medium-term corporate notes 19,135,005 3,002,240 1,448,202 14,684,563 Asset backed securities 5,077,806 21,452 894,549 4,161,805 Held by bond trustee: Money market mutual funds 65,623,607 65,623,607 - - Total investments 273,661,461$ 162,195,072$ 34,258,924$ 77,207,465$ Investment Maturities 14.a Packet Pg. 284 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Notes to the Basic Financial Statements For the Fiscal Year Ended June 30, 2020 - 57 - Note 2 – Cash and Investments (Continued) D. 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 (where applicable) 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. Minimum Ratings Rating Legal at Year-End at Year-End Investment Type Total Rating AA or AAA A /A-1 Not Rated Local Agency Investment Fund 72,554,551$ N/A -$ -$ 72,554,551$ Commercial paper 499,619 A-1 - 499,619 - Money market mutual funds 1,868,602 AA+1,868,602 - - Certificates of deposit 8,523,654 N/A - 2,794,076 5,729,578 Non-U.S. government and supranational bonds 2,458,249 AA 2,458,249 - - Federal agency securities 66,889,419 AA 66,889,419 - - U.S. Treasury obligations 31,030,949 N/A - - 31,030,949 Medium-term corporate notes 19,135,005 AA-19,135,005 - - Asset backed securities 5,077,806 AA 5,077,806 - - Held by bond trustee: Money market mutual funds 65,623,607 AA+47,097,153 - 18,526,454 Total investments 273,661,461$ 142,526,234$ 3,293,695$ 127,841,532$ E. 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 in the Government Code. Investments in any one issuer that represent 5 percent or more of total City investments are as follows: Reported Percentage Issuer Amount of Portfolio Federal National Mortgage Association 18,579,024$ 6.79% Federal Home Loan Bank 18,271,210 6.68% Federal Home Loan Mortgage Corp. 14,719,195 5.38%Federal Agency Securities Investment Type Federal Agency Securities Federal Agency Securities F. Custodial Credit Risk Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (i.e. broker-dealer) to a transaction, a government will not be able to recover the value of its investments or collateral securities that are in the possession of another party. 14.a Packet Pg. 285 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Notes to the Basic Financial Statements For the Fiscal Year Ended June 30, 2020 - 58 - Note 2 – Cash and Investments (Continued) F. Custodial Credit Risk (Continued) The California Government Code and the City’s investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than 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 fair value of the pledged securities in the collateral pool must equal at least 110 percent 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 percent of the secured public deposits. At June 30, 2020, the City’s deposits (bank balances) were collateralized under California Law. G. Investment in State Investment Pool The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The fair value of the City’s investment in this pool is reported in the accompanying financial statements at amounts based 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. H. Fair Value Measurements The City categorizes its fair value measurement within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the relative inputs used to measure the fair value of the investments. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets (Level 1 measurements), inputs are quoted price of similar assets in active markets (Level 2 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The City has the following fair value measurements for its investments as of June 30, 2020: Investments measured by fair value level: June 30, 2020 Level 1 Level 2 Level 3 Commercial paper 499,619$ -$ 499,619$ -$ Non-U.S. government and supranational bonds 2,458,249 - 2,458,249 - Federal agency securities 66,889,419 - 66,889,419 - U.S. Treasury obligations 31,030,949 31,030,949 - - Medium-term corporate notes 19,135,005 - 19,135,005 - Asset backed securities 5,077,806 - 5,077,806 - Total investments by fair value level 125,091,047$ 31,030,949$ 94,060,098$ -$ Investments not subject to the fair value hierarchy: Local Agency Investment Fund 72,554,551$ Money market mutual funds 67,492,209 Certificates of deposit 8,523,654 Total investments not subject to the fair value hierarchy 148,570,414$ Total investments 273,661,461$ 14.a Packet Pg. 286 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Notes to the Basic Financial Statements For the Fiscal Year Ended June 30, 2020 - 59 - Note 2 – Cash and Investments (Continued) H. Fair Value Measurements (Continued) Debt and equity securities classified in Level 1 are valued using prices quoted in active markets for those securities. Debt and equity securities classified in Level 2 are valued using the following approaches: U.S. Treasuries, U.S. Agencies, Non-U.S. supranational bonds, and Commercial Paper – quoted prices for identical securities in markets that are not active Medium term notes – quoted prices for similar securities in active markets Asset-backed securities – recent appraisals of the asset value. Note 3 – Notes Receivable The City uses funds generated from the former EDA as well as state and federal funding sources to offer financial assistance to qualified developers, individuals, and families primarily for housing development, rehabilitation, and economic development. Repayment terms on these loans can be classified in the following categories: 1) Deferred loans which are due and payable only upon sale or transfer of title to the property; 2) Amortizing loans which have a set monthly payment, which may be interest bearing or principal only; 3) Forgivable loans which may convert to grants depending on the terms of the loan agreements; 4) Residual receipts loans which require repayments only when the properties have positive cash flows pursuant to a formula set forth in the loan agreement; and 5) Term loans which require payment in full on the maturity date of the loans. In the financial statements, notes receivable are reported net of an allowance for doubtful accounts. In estimating the allowance, management considered the following factors: 1) composition of the loan portfolio; 2) past write-off experience; 3) past market valuation; and 4) life-to-date interest and principal payments, if applicable. The allowance estimate is continually evaluated and adjusted to reflect what management believes to be the net realizable value of the total loan portfolio. At June 30, 2020, notes receivable consisted of the following: Allowance for Financial Notes Receivable Doubtful Accounts Statement Balance Balance Balance June 30, 2020 June 30, 2020 June 30, 2020 City: Federal and State Grants Fund 11,339,623$ (11,339,623)$ -$ Low and Moderate Income Housing Fund 28,851,943 (28,851,943) - Total City 40,191,566 (40,191,566) - Successor Agency: Successor Agency to the Economic Development Agency of San Bernardino 2,324,628 (2,324,628) - Total Successor Agency 2,324,628 (2,324,628) - Total 42,516,194$ (42,516,194)$ -$ 14.a Packet Pg. 287 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Notes to the Basic Financial Statements For the Fiscal Year Ended June 30, 2020 - 60 - Note 4 – Interfund Receivables, Payables, and Transfers A. Due To / From Other Funds Amounts due to and due from other funds at June 30, 2020, were as follows: Due From Other Funds Due To Other Funds Amount Purpose General Fund Water Enterprise Fund 1,111,647$ Cost reimbursement General Fund Sewer Collection Enterprise Fund 1,004,425 Cost reimbursement Subtotal 2,116,072 Liability Insurance Internal Service Fund Motorpool Internal Service Fund 1,640,293 Overdrawn Cash Liability Insurance Internal Service Fund Workers' Compensation Internal Service Fund 1,186,633 Overdrawn Cash Total 2,826,926$ B. Transfers Interfund transfers during the year ended June 30, 2020, consisted of the following: Transfers In Transfers Out Amount Purpose Special Assessments Fund General Fund 118,755$ Budgeted Operational Transfer Impact Fees Fund Street Construction Fund 910,561 Correction of Expenditures C. Long-Term Advances At June 30, 2020, the balances of long-term advances were as follows: Advances to Other Fund Advances from Other Fund Amount Integrated Waste Enterprise Fund Motorpool Internal Service Fund 855,000$ In fiscal year 2019, the Integrated Waste Enterprise Fund entered into loan agreement with Motorpool Internal Service Fund in the amount of $1,710,000 for the purpose of upgrading the existing fuel station at the City Yard. The loan was expected to be repaid over 2 years at 2.0% interest rate per year. At June 30, 2020, the outstanding balance of the agreement was $855,000. The annual requirements to amortize the loan are as follows: Year Ended June 30, Principal Interest Total 2021 855,000$ 17,100$ 872,100$ 855,000$ 17,100$ 872,100$ 14.a Packet Pg. 288 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Notes to the Basic Financial Statements For the Fiscal Year Ended June 30, 2020 - 61 - Note 5 – Property Held for Resale Property held for resale represents single-family, multi-family, commercial, and retail real estate acquired by the City in the General Fund, the Low and Moderate Income Housing Fund and the Federal and State Grant Fund. Five properties, originally held by the Successor Agency, were released to the City by the California Department of Finance and bankruptcy decree. Property held for resale is recorded at the lower of cost or net realizable value in accordance with accounting principles generally accepted in the United States and is evaluated for impairment on an annual basis. These properties range in value from approximately $134,000 to $16.75 million and total $32.16 million and are recorded in the City’s General Fund. Approximately 58 properties are reported in the Federal and State Grants major special revenue fund ranging in amount from under $1,000 to $640,000, and total $16.11 million. The Low and Moderate Income Housing special revenue fund includes approximately 58 properties ranging in amount from approximately $5,000 to $1.81 million, and total $16.12 million. Property held for resale in the Successor Agency represents vacant land and commercial and retail real estate acquired by the EDA as part of its redevelopment activities. Approximately 32 properties ranging from under $1,000 to $2.45 million, and totaling $9.18 million, were transferred to the Successor Agency upon dissolution of the redevelopment agency. These properties are being held for disposition in accordance with applicable laws and regulations. Note 6 – Capital Assets A. Governmental Activities Capital asset activity for the year ended June 30, 2020 was as follows: Balance Balance July 1, 2019 Additions Deletions Transfers June 30, 2020 Capital assets, not being depreciated: Land 103,334,621$ 426,613$ -$ -$ 103,761,234$ Construction in progress 15,126,024 8,493,693 - (6,816,820) 16,802,897 Total capital assets, not being depreciated 118,460,645 8,920,306 - (6,816,820) 120,564,131 Capital assets, being depreciated: Infrastructure 508,708,941 - - 4,398,635 513,107,576 Buildings and improvements 77,434,914 - - 2,418,185 79,853,099 Machinery, vehicles, and equipment 50,771,766 1,177,418 (1,642,768) - 50,306,416 Subtotal 636,915,621 1,177,418 (1,642,768) 6,816,820 643,267,091 Less accumulated depreciation Infrastructure (349,948,071) (12,155,230) - - (362,103,301) Buildings and improvements (64,710,418) (1,525,965) - - (66,236,383) Machinery, vehicles, and equipment (45,347,785) (2,163,459) 1,641,962 - (45,869,282) Subtotal (460,006,274) (15,844,654) 1,641,962 - (474,208,966) Capital assets being depreciated, net 176,909,347 (14,667,236) (806) 6,816,820 169,058,125 Intangible assets, being amortized: Purchased software 5,946,327 - - - 5,946,327 Accumulated amortization (5,004,827) (594,633) - - (5,599,460) Subtotal 941,500 (594,633) - - 346,867 Total capital assets, being depreciated/amortized 177,850,847 (15,261,869) (806) 6,816,820 169,404,992 Total capital assets, net 296,311,492$ (6,341,563)$ (806)$ -$ 289,969,123$ 14.a Packet Pg. 289 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Notes to the Basic Financial Statements For the Fiscal Year Ended June 30, 2020 - 62 - Note 6 – Capital Assets (Continued) B. Business-Type Activities Capital asset activity for the year ended June 30, 2020, was as follows: Balance Balance July 1, 2019 Additions Deletions June 30, 2020 Capital assets, not being depreciated: Land and easements 23,213,972$ -$ -$ 23,213,972$ Construction in progress 7,907,283 17,674,298 (4,910,819) 20,670,762 Total capital assets, not being depreciated 31,121,255 17,674,298 (4,910,819) 43,884,734 Capital assets, being depreciated: Water rights, wells, and pumping 105,971,212 768,079 - 106,739,291 Distribution and collection systems 178,574,905 429,266 - 179,004,171 Building, plant, and store yards 167,328,631 10,500 - 167,339,131 Other capital assets 42,883,108 5,843,255 (316,783) 48,409,580 Subtotal 494,757,856 7,051,100 (316,783) 501,492,173 Less accumulated depreciation Water rights, wells, and pumping (45,477,211) (2,557,340) - (48,034,551) Distribution and collection systems (58,336,383) (3,625,616) - (61,961,999) Building, plant, and store yards (116,236,250) (4,254,435) - (120,490,685) Other capital assets (20,323,483) (2,868,367) 289,366 (22,902,484) Subtotal (240,373,327) (13,305,758) 289,366 (253,389,719) Total capital assets, being depreciated 254,384,529 (6,254,658) (27,417) 248,102,454 Total capital assets, net 285,505,784$ 11,419,640$ (4,938,236)$ 291,987,188$ Depreciation expense for the year ended June 30, 2020 was charged to the functions/programs of the primary government as follows: Governmental activities General government 1,458,926$ Public safety 1,133,876 Streets 12,867,191 Culture and recreation 282,774 Community services 2,705 Internal service funds 693,815 Total depreciation/amortization expense - Governmental activities 16,439,287$ Business-type activities Water Enterprise Fund 7,564,684$ Sewer Enterprise Fund 4,596,979 Sewer Collection Enterprise Fund 1,144,095 Total depreciation expense - Business-type activities 13,305,758$ 14.a Packet Pg. 290 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Notes to the Basic Financial Statements For the Fiscal Year Ended June 30, 2020 - 63 - Note 7 – Long-Term Liabilities A. Governmental Activities The following is a summary of changes in long-term liabilities for governmental activities for the year ended June 30, 2020: Balance Debt Debt Balance Due within Due in More July 1, 2019 Issued Retired June 30, 2020 One Year Than One Year Governmental Activities: Lease revenue bonds 3,598,360$ -$ (846,579)$ 2,751,781$ 880,244$ 1,871,537$ Direct borrowings: Notes payable HUD Section 108 - Arden Guthrie 4,802,000 - (494,000) 4,308,000 534,000 3,774,000 New World Software Agreement 626,883 - (626,883) - - - Fire Management Association Settlement 600,000 - (300,000) 300,000 300,000 - AMBAC 6,192,410 - (168,941) 6,023,469 173,678 5,849,791 Preston Hollow 14,428,336 - (393,634) 14,034,702 404,670 13,630,032 Total notes payable 26,649,629 - (1,983,458) 24,666,171 1,412,348 23,253,823 California Infrastructure and Economic Development Bank (CIEDB) - Harriman Place Street Extension Lease 406,234 - (131,676) 274,558 135,376 139,182 Total 30,654,223$ -$ (2,961,713)$ 27,692,510$ 2,427,968$ 25,264,542$ Classification 2018 Lease Revenue Refunding Bonds On January 9, 2018, the City issued $4,414,002 of 2018 Lease Revenue Refunding Bonds to defease and refund on a current basis, all of the outstanding Lease Revenue Refunding Bonds (City Hall Project), Series 1996 Bonds. The bonds are payable solely from and secured by a pledge of revenues consisting primarily of lease payments to be made by the City pursuant to a lease agreement. If the City defaults on its obligation to make the lease payments due over the term of the lease agreement, there is no available remedy of acceleration of the total lease payments due over the term of the lease agreement. The bonds consist of serial bonds maturing from 2019 through 2023 in annual installments of $991,000 to $994,000. Interest is due and payable semi-annually at 4.08%. Annual debt service is approximately $990,000 through 2023. The bonds are subject to federal arbitrage requirements. The aggregate debt service payments of the new debt are $199,009 less than the old debt. The issuance of the new debt and the refunding of the old debt resulted in an economic gain (the difference between the net present value of the old debt and new debt service payments) of approximately $107,423. The annual debt service requirements of the 2018 Lease Revenue Refunding Bonds outstanding at June 30, 2020 are as follows: Year Ending June 30,Principal Interest Total 2021 880,244$ 112,273$ 992,517$ 2022 917,690 76,359 994,049 2023 953,847 38,917 992,764 Total 2,751,781$ 227,549$ 2,979,330$ 14.a Packet Pg. 291 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Notes to the Basic Financial Statements For the Fiscal Year Ended June 30, 2020 - 64 - Note 7 – Long-Term Liabilities (Continued) A. Governmental Activities (Continued) HUD Section 108 – Arden Guthrie Focused Neighborhood Revitalization Project Note Payable (Direct Borrowing) The City of San Bernardino entered into a Contract for Loan Guarantee Assistance, a Master Fiscal Agency Agreement, and executed a promissory note with the United States Department of Housing and Urban Development pursuant to Section 108 of the Housing and Community Development Act of 1974, as amended (Section 108 Loan). The proceeds of the loan were then loaned to the EDA to be used for the Arden-Guthrie Focused Neighborhood Revitalization Project, which affects approximately 20 acres of land located at the northwest corner of Arden Avenue and 20th Street (Arden-Guthrie Site). Once the Arden- Guthrie Site is sold to a third-party, the proceeds of the sale are required to be paid to the City. All debt service payments on the Section 108 Loan are the responsibility of the City. The source of funds available for the repayment of the Loan is the CDBG Program Revenue of the City. In the event of default, the City’s annual CDBG allocation may be reduced by the amount necessary to satisfy the annual debt service requirement. Interest payments are due semiannually on February 1 and August 1 at a rate of 2.7% per annum and continue through August 1, 2026. Principal payments are due annually on August 1, and continue through August 1, 2026. The annual debt service requirements for the HUD Section 108 – Arden Guthrie note payable outstanding at June 30, 2020 are as follows: Year Ending June 30,Principal Interest Total 2021 534,000$ 229,020$ 763,020$ 2022 574,000 198,323 772,323 2023 624,000 164,802 788,802 2024 654,000 128,760 782,760 2025 654,000 91,612 745,612 2026-2027 1,268,000 73,069 1,341,069 Total 4,308,000$ 885,586$ 5,193,586$ New World Note Payable (Direct Borrowing) In 2011, the City entered into a subscription agreement for the acquisition of computer software. The agreement has the substance of a note payable for accounting purposes and has been recorded at the present value of the annual payments of $645,000, calculated using a discount rate of 2.89%. The note was paid off in full during the fiscal period, with no remaining balance outstanding. 14.a Packet Pg. 292 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Notes to the Basic Financial Statements For the Fiscal Year Ended June 30, 2020 - 65 - Note 7 – Long-Term Liabilities (Continued) A. Governmental Activities (Continued) Fire Management Association Note Payable (Direct Borrowing) On May 18, 2015, the Mayor and Common Council approved the City Recovery Plan which included numerous measures to increase revenues and reduce expenditures, including regionalizing or contracting of fire services. In January 2016, the City reached an agreement with the San Bernardino City Professional Firefighters Union, Local 891, and the San Bernardino County Fire Protection District (“SBCFPD”). The existing operations and remaining employees of the City Fire Department were transferred to SBCFPD effective July 1, 2016. The transfer agreement included stipulations for post-transfer salary mitigation amounts to be paid by the City to SBCFPD. In fiscal year 2017, it was determined that the City would pay SBCFPD $1,500,000 in five equal installments of $300,000 for salary mitigation via a zero interest note payable. The annual debt service requirements for the Fire Management Association note payable outstanding at June 30, 2020 are as follows: Year Ending June 30,Principal Interest Total 2021 300,000$ -$ 300,000$ Total 300,000$ -$ 300,000$ AMBAC Note Payable (Direct Borrowing) In October 2005, the City issued the City of San Bernardino Taxable Pension Obligation Bonds, 2005 Series A. The City issued the bonds to prepay its unfunded actuarial liability related to the City’s Safety retirement plan. The City defaulted on the bonds beginning in 2013. The City reached a settlement agreement with the bond creditors which was confirmed in bankruptcy and became effective June 15, 2017. AMBAC Assurance Corporation was a bondholder on the original bonds and, via an exchange agreement executed June 15, 2017, agreed to restructure their claim on the pension obligation bonds to a note payable in the principal amount of $15,217,703 with zero interest payable in semi-annual installments ranging from $195,195 to $375,375 through December 15, 2046. The City applied an annual interest rate of 4.92% to the installment payment schedule which resulted in a present value of the outstanding balance of $6,023,469 at June 30, 2020. In the event of default, AMBAC may, to the extent permitted by applicable law, accelerate all amounts then outstanding under the Note and demand immediate payment thereof. 14.a Packet Pg. 293 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Notes to the Basic Financial Statements For the Fiscal Year Ended June 30, 2020 - 66 - Note 7 – Long-Term Liabilities (Continued) A. Governmental Activities (Continued) AMBAC Note Payable (Direct Borrowing) (Continued) The annual debt service requirements for the AMBAC note payable outstanding at June 30, 2020 are as follows: Year Ending June 30,Principal Interest Total 2021 173,678$ 239,234$ 412,912$ 2022 173,678 239,234 412,912 2023 173,678 239,234 412,912 2024 173,678 239,234 412,912 2025 173,678 239,234 412,912 2026-2030 923,651 1,272,293 2,195,944 2031-2035 1,057,857 1,457,156 2,515,013 2036-2040 1,215,746 1,674,641 2,890,387 2041-2045 1,484,157 2,044,368 3,528,525 2046-2047 473,668 652,458 1,126,126 Total 6,023,469$ 8,297,086$ 14,320,555$ Preston Hollow Note Payable (Direct Borrowing) In October 2005, the City issued the City of San Bernardino Taxable Pension Obligation Bonds, 2005 Series A. The City issued the bonds to prepay its unfunded actuarial liability related to the City’s Safety retirement plan. The City defaulted on the bonds beginning in 2013. The City reached a settlement agreement with the bond creditors which was confirmed in bankruptcy and became effective June 15, 2017. Commerzbank Finance & Covered Bond S.A. was a bondholder on the original bonds and, via an exchange agreement executed June 15, 2017, agreed to restructure their claim on the pension obligation bonds to a note payable in the principal amount of $35,457,296 with zero interest payable in semi-annual installments ranging from $454,805 to $874,625 through December 15, 2046. The City applied an annual interest rate of 4.92% to the installment payment schedule which resulted in a present value of the outstanding balance of $14,034,702 at June 30, 2020. In the event of default, AMBAC may, to the extent permitted by applicable law, accelerate all amounts then outstanding under the Note and demand immediate payment thereof. On December 4, 2019, Preston Hollow Capital (“Preston Hollow”) purchased the note payable from Commerzbank and the City assigned the right to receive the remaining unpaid payments under the Commerzbank note to Preston Hollow. 14.a Packet Pg. 294 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Notes to the Basic Financial Statements For the Fiscal Year Ended June 30, 2020 - 67 - Note 7 – Long-Term Liabilities (Continued) A. Governmental Activities (Continued) Preston Hollow Note Payable (Direct Borrowing) (Continued) The annual debt service requirements for the Preston Hollow note payable outstanding at June 30, 2020 are as follows: Year Ending June 30,Principal Interest Total 2021 404,670$ 557,417$ 962,088$ 2022 404,670 557,417 962,088 2023 404,670 557,417 962,088 2024 404,670 557,417 962,088 2025 404,670 557,417 962,088 2026-2030 2,152,110 2,964,446 5,116,556 2031-2035 2,464,810 3,395,177 5,859,988 2036-2040 2,832,692 3,901,920 6,734,613 2041-2045 3,458,092 4,763,383 8,221,475 2046-2047 1,103,646 1,520,229 2,623,875 Total 14,034,702$ 19,332,241$ 33,366,944$ California Infrastructure and Economic Development Bank – Harriman Place Extension Lease (Direct Borrowing) On August 28, 2001, the California Infrastructure and Economic Development Bank (CIEDB) and the City entered into a lease agreement in regard to the Harriman Place Street Extension Project (Project) for an amount of $2,000,000. Interest rate is 2.81% per annum. The Project is located on real property owned by the City. Subject to the provisions of the lease, the City agreed to pay to the CIEDB as rental for use and occupancy of the Harriman Street Extension lease payments on February 1 and August 1 of each year, commencing on August 1, 2004, through August 1, 2021. The annual debt service requirements for the Harriman Place Extension Lease outstanding at June 30, 2020 are as follows: Year Ending June 30,Principal Interest Total 2021 135,376$ 5,813$ 141,189$ 2022 139,182 1,955 141,137 Total 274,558$ 7,768$ 282,326$ 14.a Packet Pg. 295 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Notes to the Basic Financial Statements For the Fiscal Year Ended June 30, 2020 - 68 - Note 7 – Long-Term Liabilities (Continued) B. Business-Type Activities A summary of changes in the long-term liabilities of the business-type activities for the year ended June 30, 2020, is as follows: Balance Debt Debt Balance Due within Due in More July 1, 2019 Issued Retired June 30, 2020 One Year Than One Year Business-Type Activities: Direct borrowings: 2016 San Bernardino Valley Municipal Water District Note 300,000$ -$ (300,000)$ -$ -$ -$ Bonds payable: 2016 Water Revenue Bonds 46,660,000 - (830,000) 45,830,000 860,000 44,970,000 Bond premium 5,402,110 - (197,639) 5,204,471 - 5,204,471 2016 Sewer Revenue Bonds 33,245,000 - (635,000) 32,610,000 665,000 31,945,000 Bond premium 175,553 - (6,403) 169,150 - 169,150 Total bonds payable 85,482,663 - (1,669,042) 83,813,621 1,525,000 82,288,621 Total 85,782,663$ -$ (1,969,042)$ 83,813,621$ 1,525,000$ 82,288,621$ Classification 2016 San Bernardino Valley Municipal Water District Note (Direct Borrowing) In December 2015, the Department entered into an agreement loan of $1,200,000 with the San Bernardino Valley Municipal Water District (SBVMWD) for UV System Rehabilitation project improvements to the Rapid Infiltration and Extraction (RIX) facility owned by the City of Colton and the Department. The note was to be paid in four (4) yearly installments of $300,000 plus interest at the LAIF interest rate of return. The loan was paid off during the fiscal year, with no remaining balance outstanding. 2016 San Bernardino Water Revenue Bonds The Water Revenue Bonds, Series 2016 (City of San Bernardino Municipal Water Department Water Facilities Project) (the “2016 Water Bonds”) were issued in the amount of $48,225,000 by the California Municipal Finance Authority (CMFA) on November 3, 2016. The bonds were issued to finance the acquisition and construction of certain water system capital improvements of the Water Department, the refund outstanding obligations of the Water Department, to purchase a Municipal Bond Debt Service Revenue Insurance Policy in satisfaction of the Reserve Requirement, and to pay the costs of issuance of the 2016 Water Bonds. The repayment of the 2016 Water Bonds is from a pledge of net revenues of the Water Fund. The principal amount due is reported net of the unamortized premium of $5,204,471. The 2016 Water Bonds have interest rates ranging from 3.0% to 5.0% per annum and maturities through August 2046. Interest is payable semi-annually on February 1 and August 1. The bonds are secured by revenues pledged for the payment of debt service. In the event of default, the bond trustee may take whatever action, in law or in equity, as may appear necessary or desirable to collect the payments of the debt. At June 30, 2020, $45,830,000 of the bonds were outstanding. The bond reserve requirement was fully funded at the end of the fiscal year. 14.a Packet Pg. 296 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Notes to the Basic Financial Statements For the Fiscal Year Ended June 30, 2020 - 69 - Note 7 – Long-Term Liabilities (Continued) B. Business-Type Activities (Continued) 2016 San Bernardino Water Revenue Bonds (Continued) The annual debt service requirements for the 2016 Water Revenue Bonds outstanding at June 30, 2020 are as follows: Year Ending June 30,Principal Interest Total 2021 860,000$ 2,130,088$ 2,990,088$ 2022 900,000 2,090,388 2,990,388 2023 950,000 2,044,138 2,994,138 2024 995,000 1,955,513 2,950,513 2025 1,050,000 1,944,388 2,994,388 2026-2030 6,100,000 8,858,688 14,958,688 2031-2035 7,600,000 7,358,081 14,958,081 2036-2040 9,505,000 5,451,500 14,956,500 2041-2045 12,155,000 2,796,799 14,951,799 2046-2047 5,715,000 267,335 5,982,335 Total 45,830,000$ 34,896,918$ 80,726,918$ Pledged Revenues The City has pledged future net revenues from the Water Fund for the repayment of all of the Revenue Bonds of the Water Fund. For the year ended June 30, 2020, total principal and interest paid was $2,993,888, and net revenues were $12,841,814. The total principal and interest remaining to be paid on the Water Utility Revenue Bonds are $80,726,918. Debt Covenants The Revenue Bonds all require the maintenance of a financial covenant of minimum debt service coverage (DSC) ratio. The minimum DSC ratio for the bonds is 110% of net system revenues, which are pledged for repayment of revenue bonds. The DSC ratio is the measure of the Water Fund’s ability to have sufficient resources to pay its debt service. The Water Fund has met its DSC for the fiscal year ended June 30, 2020, at each measurement. 2016 San Bernardino Sewer Revenue Bonds The Sewer Revenue Bonds, Series 2016 (City of San Bernardino Sewer Facilities Project) (the “2016 Sewer Bonds”) were issued in the amount of $34,445,000 by the California Municipal Finance Authority (CMFA) on December 8, 2016. The bonds were issued to finance the acquisition and construction of additional capital improvements to the sewer utility. The repayment of the 2016 Sewer Bonds is from a pledge of net revenues of the Sewer Fund. The principal amount due is reported net of the unamortized premium of $169,150. 14.a Packet Pg. 297 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Notes to the Basic Financial Statements For the Fiscal Year Ended June 30, 2020 - 70 - Note 7 – Long-Term Liabilities (Continued) B. Business-Type Activities (Continued) 2016 San Bernardino Sewer Revenue Bonds (Continued) The 2016 Sewer Bonds have interest rates ranging from 3.0% to 5.0% per annum and maturities through April 2046. Interest is payable semi-annually on February 1 and August 1. The bonds are secured by revenues pledged for the payment of debt service. In the event of default, the bond trustee may take whatever action, in law or in equity, as may appear necessary or desirable to collect the payments of the debt. At June 30, 2020, $32,610,000 of the bonds were outstanding. The bond reserve requirement was fully funded at the end of the fiscal year. The annual debt service requirements for the 2016 Sewer Revenue Bonds outstanding at June 30, 2020 are as follows: Year Ending June 30,Principal Interest Total 2021 665,000$ 1,301,900$ 1,966,900$ 2022 700,000 1,267,775 1,967,775 2023 735,000 1,231,900 1,966,900 2024 770,000 1,194,275 1,964,275 2025 810,000 1,154,775 1,964,775 2026-2030 4,645,000 5,191,475 9,836,475 2031-2035 5,545,000 4,290,113 9,835,113 2036-2040 6,730,000 3,096,600 9,826,600 2041-2045 8,230,000 1,605,400 9,835,400 2046-2047 3,780,000 152,800 3,932,800 Total 32,610,000$ 20,487,013$ 53,097,013$ Pledged Revenues The City has pledged future net revenues from the Sewer Fund for the repayment of all of the Revenue Bonds of the Sewer Fund. For the year ended June 30, 2020, total principal and interest paid was $2,266,225, and net revenues were $11,668,028. The total principal and interest remaining to be paid on the Water Utility Revenue Bonds are $53,097,013. Debt Covenants The Sewer Revenue Bonds all require the maintenance of a financial covenant of minimum debt service coverage (DSC) ratio. The minimum DSC ratio for the bonds is 110% of net system revenues, which are pledged for repayment of revenue bonds. The DSC ratio is the measure of the Water Fund’s ability to have sufficient resources to pay its debt service. The Water Fund has met its DSC for the fiscal year ended June 30, 2020, at each measurement. 14.a Packet Pg. 298 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Notes to the Basic Financial Statements For the Fiscal Year Ended June 30, 2020 - 71 - Note 7 – Long-Term Liabilities (Continued) C. Fiduciary Fund Financial Statements A summary of changes in the long-term liabilities of the fiduciary fund financial statements for the year ended June 30, 2020, is as follows: Balance Debt Debt Balance Due within Due in More July 1, 2019 Issued Retired June 30, 2020 One Year Than One Year Fiduciary Activities: Tax allocation bonds: Series 1998A, Refunding 2,675,000$ -$ (1,300,000)$ 1,375,000$ 1,375,000$ -$ Series 2005A, Refunding 20,600,000 - (3,905,000) 16,695,000 4,135,000 12,560,000 Series 2005B, Refunding 7,520,000 - (1,510,000) 6,010,000 1,595,000 4,415,000 Series 2010A 4,830,000 - (280,000) 4,550,000 300,000 4,250,000 Series 2010B 1,920,000 - (100,000) 1,820,000 65,000 1,755,000 Series 2016A, Refunding 21,470,000 - (2,815,000) 18,655,000 2,915,000 15,740,000 Series 2016B, Refunding 11,505,000 - (2,225,000) 9,280,000 2,780,000 6,500,000 Unamortized discount (39,051) - 4,594 (34,457) - (34,457) Unamortized premium 3,644,406 - (323,779) 3,320,627 - 3,320,627 Total tax allocation bonds 74,125,355 - (12,454,185) 61,671,170 13,165,000 48,506,170 Mortgage revenue bonds: Highland Senior Housing 1995 800,000 - (90,000) 710,000 95,000 615,000 Casa Ramona Senior Housing 1995 700,000 - (80,000) 620,000 85,000 535,000 Total mortgage revenue bonds 1,500,000 - (170,000) 1,330,000 180,000 1,150,000 Certificates of participation: 1999 Certificates of Participation 3,215,000 - (470,000) 2,745,000 490,000 2,255,000 Total certificates of participation 3,215,000 - (470,000) 2,745,000 490,000 2,255,000 Total 78,840,355$ -$ (13,094,185)$ 65,746,170$ 13,835,000$ 51,911,170$ Classification Tax Allocation Refunding Bonds, Series 1998A The $19,000,000 of tax allocation refunding bonds, issue of 1998, Series A, consist of serial bonds with varying interest rates from 3.600% to 5.750% per annum. Interest is payable semiannually on January 1 and July 1. Serial bonds mature annually on July 1 through July 1, 2020. The proceeds of the 1998 Series A Tax Allocation Refunding Bonds along with the proceeds of the 1998 Series B Subordinated Tax Allocation Refunding Bonds were used to advance refund $20,990,000 of outstanding Central City Project Tax Allocation Refunding Bonds, 1991 Series A and $4,005,000 of outstanding Central City Project Subordinated Tax Allocation Bonds 1991 Series B. The Series A bonds are not subject to optional redemption. The bonds are secured by a pledge of property tax apportionments from the Central City Project Area. In accordance with the bond documents, a reserve account is required to be maintained in the amount of $1,456,515. The balance held in the reserve account as of June 30, 2020 was $1,454,070. At June 30, 2020, $1,375,000 of the bonds were outstanding. In the event of default, the bond trustee may pursue any available remedy, in law or in equity, to enforce the payments of the debt. 14.a Packet Pg. 299 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Notes to the Basic Financial Statements For the Fiscal Year Ended June 30, 2020 - 72 - Note 7 – Long-Term Liabilities (Continued) C. Fiduciary Fund Financial Statements (Continued) Tax Allocation Refunding Bonds, Series 1998A The annual debt service requirements for the Tax Allocation Refunding Bonds, Series 1998A outstanding at June 30, 2020 are as follows: Year Ending June 30,Principal Interest Total 2021 1,375,000 39,531 1,414,531 Total 1,375,000$ 39,531$ 1,414,531$ Tax Allocation Refunding Bonds, Series 2005A In September 2005, the San Bernardino Joint Powers Financing Authority issued $55,800,000 in tax allocation refunding bonds to current refund $55,800,000 of the outstanding 1995A Tax Allocation Refunding Bonds. The remaining portion of the 1995A Bonds was refunded with the proceeds of the Authority’s Tax Allocation Refunding Bonds, Series 2005B (see following section). As a result, the 1995A Tax Allocation Refunding Bonds are considered to be defeased and the liability has been removed from the financial statements. The Series 2005A bonds consist of serial bonds with varying interest rates from 5.15% to 5.75% per annum. Interest is payable semi-annually on April 1 and October 1. Serial bonds mature annually on October 1 through October 1, 2025. The Series 2005A bonds are not subject to optional redemption. The former EDA agreed to pay the Authority principal and interest payments solely from the EDA's tax revenues from the Central City North, State College Project No. 4, Southeast Industrial Park, Northwest, South Valle, Uptown, and Tri-City Redevelopment Project Areas. A reserve account is required to be maintained in the amount of $5,101,721. The balance held in the reserve account as of June 30, 2020 was $5,131,895. At June 30, 2020, $16,695,000 of the bonds were outstanding. In the event of default, the bond trustee may pursue any available remedy, in law or in equity, to enforce the payments of the debt. The reacquisition price exceeded the net carrying amount of the old debt by $1,116,000. This amount is being netted against the new debt and being amortized over the life of the new debt. The advance refunding resulted in an increase in debt service payments over the next 20 years of $18,089 and resulted in an economic gain of $1,940,000. 14.a Packet Pg. 300 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Notes to the Basic Financial Statements For the Fiscal Year Ended June 30, 2020 - 73 - Note 7 – Long-Term Liabilities (Continued) C. Fiduciary Fund Financial Statements (Continued) Tax Allocation Refunding Bonds, Series 2005A (Continued) The annual debt service requirements for the Tax Allocation Refunding Bonds, Series 2005A outstanding at June 30, 2020 are as follows: Year Ending June 30,Principal Interest Total 2021 4,135,000$ 841,081$ 4,976,081$ 2022 2,390,000 653,488 3,043,488 2023 2,525,000 512,181 3,037,181 2024 2,670,000 362,825 3,032,825 2025 2,420,000 216,488 2,636,488 2026 2,555,000 73,456 2,628,456 Total 16,695,000$ 2,659,519$ 19,354,519$ Tax Allocation Revenue Refunding Bonds, Series 2005B In September 2005, the San Bernardino Joint Powers Financing Authority issued $21,105,000 in tax allocation refunding bonds to current refund $21,105,000 of the outstanding 1995A Tax Allocation Refunding Bonds. The remaining portion of the 1995A Bonds was refunded with the proceeds of the Authority’s Tax Allocation Refunding Bonds, Series 2005A (see preceding section). As a result, the 1995A Tax Allocation Refunding Bonds are considered to be defeased and the liability has been removed from the financial statements. The Series 2005B bonds consist of serial bonds with varying interest rates from 5.15% to 5.75% per annum. Interest is payable semi-annually on April 1 and October 1. Serial bonds mature annually on October 1 through October 1, 2025. The Series 2005B bonds are not subject to optional redemption. The former EDA agreed to pay the Authority principal and interest payments solely from the EDA's tax revenues from the Central City North, State College Project No. 4, Southeast Industrial Park, Northwest, South Valle, Uptown and Tri-City Redevelopment Project Areas. A reserve account is required to be maintained in the amount of $1,946,566. The balance held in the reserve account as of June 30, 2019 was $1,954,643. At June 30, 2020, $6,010,000 of the bonds were outstanding. In the event of default, the bond trustee may pursue any available remedy, in law or in equity, to enforce the payments of the debt. The reacquisition price exceeded the net carrying amount of the old debt by $422,100. This amount is being netted against the new debt and being amortized over the life of the new debt. 14.a Packet Pg. 301 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Notes to the Basic Financial Statements For the Fiscal Year Ended June 30, 2020 - 74 - Note 7 – Long-Term Liabilities (Continued) C. Fiduciary Fund Financial Statements (Continued) Tax Allocation Revenue Refunding Bonds, Series 2005B (Continued) The annual debt service requirements for the Tax Allocation Refunding Bonds, Series 2005B outstanding at June 30, 2020 are as follows: Year Ending June 30,Principal Interest Total 2021 1,595,000$ 299,719$ 1,894,719$ 2022 820,000 230,288 1,050,288 2023 870,000 181,700 1,051,700 2024 920,000 130,238 1,050,238 2025 875,000 78,631 953,631 2026 930,000 26,738 956,738 Total 6,010,000$ 947,314$ 6,957,314$ Tax Allocation Bonds, Series 2010A In December 2010, the San Bernardino Joint Powers Financing Authority issued $7,065,000 in tax allocation bonds to finance certain redevelopment activities of the 4th Street Corridor project, to fund a reserve fund for the bonds, fund the interest account, and pay all costs of issuance related to the bonds. The outstanding Series 2010A bonds consist of term bonds of $5,330,000 maturing from April 1, 2018, to April 1, 2030 in annual installments ranging from $240,000 to $655,000. Term bonds of $1,080,000 are due on April 1, 2021, and term bonds of $4,250,000 are due on April 1, 2030. Interest is payable semi-annually on April 1 and October 1 at rates ranging from 3.5% to 9.3% per annum. Term bonds maturing on April 1, 2021, are subject to mandatory prepayment, on each April 1, commencing on April 1, 2016, through April 1, 2021. Term bonds maturing on April 1, 2030, are subject to mandatory prepayment on each April 1, commencing on April 1, 2022, through April 1, 2030. The former EDA agreed to pay the Authority principal and interest payments solely from the Tax Revenues from the Northwest Redevelopment Project Area. A reserve account is required to be maintained in the amount of $685,294. The balance held in the reserve account as of June 30, 2020, was $691,951. At June 30, 2020, $4,550,000 of the bonds were outstanding. In the event of default, the bond trustee may pursue any available remedy, in law or in equity, to enforce the payments of the debt. 14.a Packet Pg. 302 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Notes to the Basic Financial Statements For the Fiscal Year Ended June 30, 2020 - 75 - Note 7 – Long-Term Liabilities (Continued) C. Fiduciary Fund Financial Statements (Continued) Tax Allocation Bonds, Series 2010A (Continued) The annual debt service requirements for the Tax Allocation Bonds, Series 2010A outstanding at June 30, 2020 are as follows: Year Ending June 30,Principal Interest Total 2021 300,000$ 415,625$ 715,625$ 2022 325,000 393,125 718,125 2023 355,000 363,063 718,063 2024 385,000 330,225 715,225 2025 420,000 294,613 714,613 2026-2030 2,765,000 812,613 3,577,613 Total 4,550,000$ 2,609,264$ 7,159,264$ Tax Allocation Bonds, Series 2010B In January 2011, the San Bernardino Joint Powers Financing Authority issued $3,220,000 in tax allocation bonds to finance certain redevelopment activities of the Northwest project area, to fund a reserve fund for the bonds, fund the interest account, and pay all costs of issuance of the bonds. The outstanding Series 2010B bonds consist of term bonds of $2,160,000 maturing from April 1, 2020, to April 1, 2028 in annual installments ranging from $25,000 to $690,000. Term bonds of $340,000 are due on April 1, 2020 and term bonds of $1,820,000 are due on April 1, 2028. Interest is payable annually on April 1 at rates ranging from 3.0% to 7.0% per annum. The term bonds maturing in April 2020 are subject to mandatory prepayment, on each April 1, commencing on April 1, 2013, through April 1, 2020. Term bonds maturing on April 1, 2028, are subject to mandatory prepayment, on each April 1, commencing on April 1, 2021, through April 1, 2028. The former EDA agreed to pay the Authority principal and interest payments solely from the EDA's tax revenues from the Northwest Redevelopment Project Area. A reserve account is required to be maintained in the amount of $309,888. The balance held in the reserve account as of June 30, 2020, was $311,810. At June 30, 2020, $1,820,000 of the bonds were outstanding. In the event of default, the bond trustee may pursue any available remedy, in law or in equity, to enforce the payments of the debt. 14.a Packet Pg. 303 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Notes to the Basic Financial Statements For the Fiscal Year Ended June 30, 2020 - 76 - Note 7 – Long-Term Liabilities (Continued) C. Fiduciary Fund Financial Statements (Continued) Tax Allocation Bonds, Series 2010B (Continued) The annual debt service requirements for the Tax Allocation Bonds, Series 2010B outstanding at June 30, 2020 are as follows: Year Ending June 30,Principal Interest Total 2021 65,000$ 127,400$ 192,400$ 2022 90,000 122,850 212,850 2023 75,000 116,550 191,550 2024 - 111,300 111,300 2025 25,000 111,300 136,300 2026-2028 1,565,000 253,050 1,818,050 Total 1,820,000$ 842,450$ 2,662,450$ Tax Allocation Refunding Bonds, Series 2016A In March 2016, the Agency issued $27,850,000 in tax-exempt tax allocation refunding bonds in order to refund the outstanding balances, as of April 1, 2016, of the CMB Infrastructure Investment Group Notes Payable, the Tax Allocation Bonds, Series 2002A, and the Tax Allocation Refunding Bonds, Series 2002, to purchase a Municipal Bond Debt Service Reserve Insurance Policy for deposit in the reserve account, and to pay certain costs of issuance. The Series 2016A bonds consist of $24,925,000 in serial bonds, which mature on December 1 each year from 2017 through 2025 in amounts ranging from $2,310,000 to $3,900,000, and $1,945,000 of term bonds maturing on December 1, 2031. Interest is paid semi-annually on June 1 and December 1 at interest rates ranging from 2.0% to 5.0% per annum. The Series 2016A bonds are payable from, and secured by, the tax revenues deposited in the Redevelopment Property Tax Trust Fund. The aggregate debt service payments of the new debt are $9,381,967 less than the old debt. The issuance of the new debt and refunding of the old debt resulted in an economic gain (the difference between the net present value of the old debt and new debt service payments) of approximately $10,028,205. A reserve account is required to be maintained in the amount of $5,241,569. As of June 30, 2020, the reserve requirement was met through the City’s purchase of a Surety policy in-lieu of the cash reserve requirement. At June 30, 2020, $18,655,000 of the bonds were outstanding. In the event of default, the bond trustee may pursue any available remedy, in law or in equity, to enforce the payments of the debt. 14.a Packet Pg. 304 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Notes to the Basic Financial Statements For the Fiscal Year Ended June 30, 2020 - 77 - Note 7 – Long-Term Liabilities (Continued) C. Fiduciary Fund Financial Statements (Continued) Tax Allocation Bonds, Series 2016A (Continued) The annual debt service requirements for the Tax Allocation Refunding Bonds, Series 2016A outstanding at June 30, 2020 are as follows: Year Ending June 30,Principal Interest Total 2021 2,915,000$ 859,875$ 3,774,875$ 2022 3,900,000 689,500 4,589,500 2023 2,310,000 534,250 2,844,250 2024 2,425,000 415,875 2,840,875 2025 2,610,000 290,000 2,900,000 2026-2030 3,965,000 344,875 4,309,875 2031-2032 530,000 32,000 562,000 Total 18,655,000$ 3,166,375$ 21,821,375$ Tax Allocation Refunding Bonds, Series 2016B In March 2016, the Agency issued $16,030,000 in federally taxable tax allocation refunding bonds in order to refund the outstanding balances, as of April 1, 2016, of the Tax Allocation Bonds, Series 1998B and Tax Allocation Bonds, Taxable Series 2006, to purchase a Municipal Bond Debt Service Reserve Insurance Policy for deposit in the reserve account, and to pay certain costs of issuance. The Series 2016B bonds consist of $12,015,000 in serial bonds, which mature on December 1 each year from 2017 through 2022 in amounts ranging from $815,000 to $2,780,000, and $1,700,000 and $2,315,000 of term bonds maturing on December 1, 2024 and December 1, 2027, respectively. Interest is paid semi- annually on June 1 and December 1 at interest rates ranging from 1.75% to 4.05% per annum. The Series 2016B bonds are payable from, and secured by, the tax revenues deposited in the Redevelopment Property Tax Trust Fund. The aggregate debt service payments of the new debt are $5,514,666 less than the old debt. The issuance of the new debt and refunding of the old debt resulted in an economic gain (the difference between the net present value of the old debt and new debt service payments) of approximately $5,072,654. A reserve account is required to be maintained in the amount of $5,241,569. As of June 30, 2020, the reserve requirement was met through the City’s purchase of a Surety policy in-lieu of the cash reserve requirement. At June 30, 2020, $9,280,000 of the bonds were outstanding. In the event of default, the bond trustee may pursue any available remedy, in law or in equity, to enforce the payments of the debt. 14.a Packet Pg. 305 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Notes to the Basic Financial Statements For the Fiscal Year Ended June 30, 2020 - 78 - Note 7 – Long-Term Liabilities (Continued) C. Fiduciary Fund Financial Statements (Continued) Tax Allocation Refunding Bonds, Series 2016B (Continued) The annual debt service requirements for the Tax Allocation Bonds, Series 2016B outstanding at June 30, 2020 are as follows: Year Ending June 30,Principal Interest Total 2021 2,780,000$ 264,768$ 3,044,768$ 2022 1,670,000 203,230 1,873,230 2023 815,000 165,140 980,140 2024 835,000 137,488 972,488 2025 865,000 107,738 972,738 2026-2028 2,315,000 136,100 2,451,100 Total 9,280,000$ 1,014,463$ 10,294,463$ Highland Senior Housing 1995 Mortgage Revenue Bonds The Multifamily Housing Revenue Bonds 1995 Series (Highland Lutheran Senior Housing Project) were issued on June 29, 1995 for $1,710,000. The mortgage revenue bonds are special obligations payable solely from payments made on and secured by a pledge of the acquired mortgage loans and certain reserve funds and other monies in connection therewith, all pledged under the resolution authorizing the issuance of the bonds. The Bonds shall mature on July 1, 2025 and shall bear interest at the rate of 7.625% per annum. Interest is payable semi-annually on July 1 and January 1. The bonds are payable from revenues or assets of the EDA. Multifamily Housing Revenue Bonds (Highland Lutheran Senior Housing Project) 1995 Series mortgage revenue bonds outstanding as of June 30, 2020 are $710,000. In the event of default, the bond trustee may pursue any available remedy, in law or in equity, to enforce the payments of the debt. The annual debt service requirements for the Highland Senior Housing Mortgage Revenue bonds outstanding at June 30, 2020 are as follows: Year Ending June 30,Principal Interest Total 2021 95,000$ 50,516$ 145,516$ 2022 105,000 42,891 147,891 2023 115,000 34,503 149,503 2024 120,000 25,544 145,544 2025 130,000 16,013 146,013 2026 145,000 5,528 150,528 Total 710,000$ 174,995$ 884,995$ 14.a Packet Pg. 306 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Notes to the Basic Financial Statements For the Fiscal Year Ended June 30, 2020 - 79 - Note 7 – Long-Term Liabilities (Continued) C. Fiduciary Fund Financial Statements (Continued) Casa Ramona Senior Housing 1995 Mortgage Revenue Bonds The Multifamily Housing Revenue Bonds 1995 Series (Casa Ramona Senior Housing Complex Project) were issued on June 29, 1995 for $1,500,000. The mortgage revenue bonds are special obligations payable solely from payments made on and secured by a pledge of the acquired mortgage loans and certain reserve funds and other monies in connection therewith, all pledged under the resolution authorizing the issuance of the bonds. The Bonds shall mature on July 1, 2025 and shall bear interest at the rate of 7.875% per annum. Interest is payable semi-annually on July 1 and January 1. The bonds are payable from revenues or assets of the EDA. Multifamily Housing Revenue Bonds (Casa Ramona Senior Housing Project) 1995 Series mortgage revenue bonds outstanding as of June 30, 2020 are $620,000. In the event of default, the bond trustee may pursue any available remedy, in law or in equity, to enforce the payments of the debt. The annual debt service requirements for the Casa Ramona Senior Housing 1995 Mortgage Revenue bonds outstanding at June 30, 2020 are as follows: Year Ending June 30,Principal Interest Total 2021 85,000$ 45,478$ 130,478$ 2022 90,000 38,588 128,588 2023 100,000 31,106 131,106 2024 105,000 23,034 128,034 2025 115,000 14,372 129,372 2026 125,000 4,922 129,922 Total 620,000$ 157,500$ 777,500$ 1999 Certificates of Participation On September 23, 1999, the San Bernardino Joint Powers Financing Authority issued $15,480,000 of Refunding Certificates of Participation (Certificates). The Certificates were issued to retire $2,325,000 outstanding of Refunding Certificates of Participation (South Valle Public Improvement Project) dated April 1, 1987, and $5,910,000 outstanding of Certificates of Participation (1995 Police Station Financing Project) dated April 1, 1995, and to provide funds for capital improvements (201 Building Projects). The Certificates mature on September 1 of each year through September 1, 2024, in amounts ranging from $420,000 to $1,080,000. The interest represented by the Certificates is calculated on the basis of a 360-day year of twelve 30-day months, from September 1, 1999, at the rates per annum set forth in the bond documents and will represent the sum of the portions of the lease payments designated as interest coming due during the six months preceding each interest payment date. The interest rates will range approximately from 3.70% to 5.50% per annum. 14.a Packet Pg. 307 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Notes to the Basic Financial Statements For the Fiscal Year Ended June 30, 2020 - 80 - Note 7 – Long-Term Liabilities (Continued) C. Fiduciary Fund Financial Statements (Continued) 1999 Certificates of Participation (Continued) The Certificates maturing on September 1, 2020, are subject to mandatory sinking fund redemption in part on September 1 in each year on or after September 1, 2010, from the principal components of the lease payments required to be paid by the City pursuant to the Lease Agreements with respect to each such redemption date, at a redemption price equal to the principal amount thereof to be redeemed, together with interest accrued thereon to the date fixed for redemption, without premium, in accordance with the terms identified in the bond documents. The Certificates maturing on September 1, 2024, are subject to mandatory sinking fund redemption in part on September 1, 2021, from the principal components of the lease payments required to be paid by the City pursuant to the Lease Agreements with respect to each such redemption date, at a redemption price equal to the principal amount thereof to be redeemed, together with interest accrued thereon to the date fixed for redemption, without premium, in accordance with the terms identified in the bond documents. In the event of default, the bond trustee may pursue any available remedy, in law or in equity, to enforce the payments of the debt. The Certificates represent direct, undivided fractional interest in lease payments to be made by the City under the lease agreements. A reserve fund is required to be maintained in an amount equal to the maximum annual debt service. At June 30, 2020, the reserve requirement was $647,159 and the amount held in the reserve account was $647,159. The total outstanding balance of the Certificates at June 30, 2020, was $2,745,000, which is the portion of the Certificates that represent the South Valle Refunding and 201 Building Projects. Repayments of these portions of the Certificates are funded from the Redevelopment Property Tax Trust Fund, as a result of the dissolution of the redevelopment agency. The Certificates that represent the Police Station portion, were defeased during the fiscal year ended June 30, 2017. The annual debt service requirements for the 1999 Certificates of Participation outstanding at June 30, 2020 are as follows: Year Ending June 30,Principal Interest Total 2021 490,000$ 137,500$ 627,500$ 2022 520,000 109,725 629,725 2023 545,000 80,438 625,438 2024 580,000 49,500 629,500 2025 610,000 16,775 626,775 Total 2,745,000$ 393,938$ 3,138,938$ 14.a Packet Pg. 308 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Notes to the Basic Financial Statements For the Fiscal Year Ended June 30, 2020 - 81 - Note 8 – Compensated Absences The City records a liability for unused vacation and similar compensatory leave balances, as the employees’ entitlement to these balances are attributable to services already rendered and it is probable that virtually all of these balances will be liquidated by either paid time-off or payments upon termination or retirement. A. Primary Government A summary of changes in the compensated absences balances for the primary government for the year ended June 30, 2020 is as follows: Balance Balance Due within Due in More July 1, 2019 Additions Deletions June 30, 2020 One Year Than One Year Governmental activities 5,217,775$ 8,252,913$ (7,468,569)$ 6,002,119$ 1,800,636$ 4,201,483$ Business-type activities 1,380,449 2,364,854 (2,038,721) 1,706,582 1,361,285 345,297 Total 6,598,224$ 10,617,767$ (9,507,290)$ 7,708,701$ 3,161,921$ 4,546,780$ Classification Compensated absences of the primary government are obligations of the following funds: Governmental activities Governmental Funds 5,769,492$ Workers Compensation 7,114 Liability Insurance 8,266 Motorpool 76,076 Information Systems 141,171 Total - Governmental activities 6,002,119$ Business-type activities Water Fund 1,186,693$ Sewer Fund 482,709 Sewer Collection Fund 29,220 Integrated Waste Fund 7,960 Total - Business-type activities 1,706,582$ 14.a Packet Pg. 309 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Notes to the Basic Financial Statements For the Fiscal Year Ended June 30, 2020 - 82 - Note 8 – Compensated Absences (Continued) B. Fiduciary Fund Financial Statements A summary of changes in the compensated absences balances for the fiduciary fund financial statements for the year ended June 30, 2020 is as follows: Balance Balance Due within Due in More July 1, 2019 Additions Deletions June 30, 2020 One Year Than One Year Compensated absences 112,710$ 14,799$ (11,984)$ 115,525$ 115,525$ -$ Total 112,710$ 14,799$ (11,984)$ 115,525$ 115,525$ -$ Classification All compensated absences liabilities in the fiduciary fund financial statements belong to the Redevelopment Obligation Retirement Fund (Successor Agency). Note 9 – Claims and Judgments Payable The City of San Bernardino is self-insured for its liability, unemployment and long-term disability programs. The accrued liability for estimated claims represents an estimate of the eventual loss on claims arising prior to year-end including claims incurred but not yet reported and estimates of loss adjustment expense. For liability claims, the City is self-insured for the first $5 million. In addition, the City has obtained excess liability coverage using a tiered system with four carriers totaling $35 million per occurrence. The City is a member of the Public Risk Innovation, Solutions, and Management (PRISM), formerly known as CSAC Excess Insurance Authority for its workers’ compensation claims. For these claims, the City is self- insured for the first $1 million. Excess coverage is currently maintained by PRISM for workers’ compensation for coverage in excess of the City’s self-insured retention of $1 million, with statutory limits of $50 million Settled claims for general liability and workers’ compensation have not exceeded insurance coverage during the past three years. A. Governmental Activities Changes in the general liability claims liability for the governmental activities for the past three fiscal years are as follows: Beginning of Claims and Balance at Fiscal Year Changes in Claims Fiscal Year Liability Estimates Payments End 2017-2018 7,845,401$ 1,490,799$ (4,164,456)$ 5,171,744$ 2018-2019 5,171,744 2,905,525 (2,067,649) 6,009,620 2019-2020 6,009,620 9,004,822 (5,151,204) 9,863,238 14.a Packet Pg. 310 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Notes to the Basic Financial Statements For the Fiscal Year Ended June 30, 2020 - 83 - Note 9 – Claims and Judgments Payable (Continued) A. Governmental Activities (Continued) Changes in the workers’ compensation claims liability for the governmental activities for the past three fiscal years are as follows: Beginning of Claims and Balance at Fiscal Year Changes in Claims Fiscal Year Liability Estimates Payments End 2017-2018 24,632,649$ 4,985,843$ (6,655,289)$ 22,963,203$ 2018-2019 22,963,203 3,002,819 (3,644,906) 22,321,116 2019-2020 22,321,116 2,132,806 (2,533,549) 21,920,373 B. Business-Type Activities Changes in the workers’ compensation claims liability for the business-type activities for the past three fiscal years are as follows: Beginning of Claims and Balance at Fiscal Year Changes in Claims Fiscal Year Liability Estimates Payments End 2017-2018 2,410,603$ 2,608,114$ (2,131,740)$ 2,886,977$ 2018-2019 2,886,977 (197,045) - 2,689,932 2019-2020 2,689,932 (911,541) - 1,778,391 The City maintains third party insurance coverage for general liability claims in business-type activities. Note 10 – Pension Plans A. Summary Net Pension Liability Net Pension Liability is reported in the accompanying statements of net position as follows: Net Pension Liability CalPERS Miscellaneous Plan - City 168,143,581$ CalPERS Safety Plan - City 275,241,375 Subtotal - City 443,384,956 CalPERS Miscellaneous Plan - Successor Agency 6,660,395 Total 450,045,351$ 14.a Packet Pg. 311 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Notes to the Basic Financial Statements For the Fiscal Year Ended June 30, 2020 - 84 - Note 10 – Pension Plans (Continued) A. Summary (Continued) Deferred Outflows of Resources Deferred Outflows of Resources are reported in the accompanying statements of net position as follows: Differences Between Pension Contributions Expected and Changes of Made after the Actual Experience Assumptions Measurement Date Total CalPERS Miscellaneous Plan - City 3,292,972$ -$ 15,688,687$ 18,981,659$ CalPERS Safety Plan - City 5,932,915 - 22,639,577 28,572,492 Subtotal - City 9,225,887 - 38,328,264 47,554,151 CalPERS Miscellaneous Plan - Successor Agency 426,751 205,012 420,125 1,051,888 Total 9,652,638$ 205,012$ 38,748,389$ 48,606,039$ Deferred Inflows of Resources Deferred Inflows of Resources are reported in the accompanying statements of net position as follows: Net Difference Between Differences Between Differences Between Projected and Actual Employer's Contributions Change in Expected and Changes of Earnings on Pension and Proportionate Share Employer's Actual Experience Assumptions Plan Investments of Contributions Proportion Total CalPERS Miscellaneous Plan - City 72,037$ 124,655$ 2,600,720$ -$ -$ 2,797,412$ CalPERS Safety Plan - City 59,313 343,619 3,631,200 - - 4,034,132 Subtotal - City 131,350 468,274 6,231,920 - - 6,831,544 CalPERS Miscellaneous Plan - Successor Agency - - 116,444 324,116 173,061 613,621 Total 131,350$ 468,274$ 6,348,364$ 324,116$ 173,061$ 7,445,165$ Pension Expense Pension expenses are included in the accompanying financial statements as follows: Net Pension Expense CalPERS Miscellaneous Plan - City 22,489,384$ CalPERS Safety Plan - City 47,370,983 Subtotal - City 69,860,367 CalPERS Miscellaneous Plan - Successor Agency 927,740 Total 70,788,107$ 14.a Packet Pg. 312 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Notes to the Basic Financial Statements For the Fiscal Year Ended June 30, 2020 - 85 - Note 10 – Pension Plans (Continued) B. City Plans Plan Description Substantially all City employees working the equivalent of 1,000 hours per fiscal year are eligible to participate in the Safety Plan and Miscellaneous Plan Agent multiple-employer defined benefit plans administered by California Public Employees Retirement System (CalPERS), which acts as a common investment and administrative agent for its participating member employers. Benefit Provisions under the Plans are established by State statutes within the Public Employee’s Retirement Law. Following the passage of AB340, Public Employees’ Pension Reform Act (PEPRA) by the California Legislature, employees hired on or after January 1, 2013, who were not previously enrolled in the PERS system elsewhere, or who have had a break in service of at least six months are required to be enrolled in this retirement program which provides a benefit level that is lower than the benefits provided for CalPERS employees that do not meet the PEPRA qualifications previously described. 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. Copies of the CalPERS annual financial report may be obtained from the CalPERS Executive Office – 400 P Street, Sacramento, CA 95814. Benefits Provided CalPERS provides retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. A classic CalPERS member becomes eligible for service retirement upon attainment of age 55 with at least 5 years of credited service. CalPERS California Public Employees’ Pension Reform Act (PEPRA) members become eligible for service retirement upon attainment of age 62 with at least 5 years of service. The service retirement benefit is a monthly allowance equal to the product of the benefit factor, years of service, and final compensation. The final compensation is the monthly average of the member's highest 36 or 12 consecutive months' fulltime equivalent monthly pay. Retirement benefits for classic miscellaneous employees are calculated as 2% to 2.7% of the average final 12 months compensation. Retirement benefits for PEPRA miscellaneous employees are calculated as 2% of the average final 36 months compensation. Retirement benefits for classic safety employees are calculated as 3% of the average final 12 months compensation. Retirement benefits for PEPRA safety employees are calculated as 2.7% of the average final 36 months compensation. Participant is eligible for nonindustrial disability retirement if becomes disabled and has at least 5 years of credited service. There is no special age requirement. The standard nonindustrial disability retirement benefit is a monthly allowance equal to 1.8% of final compensation, multiplied by service. Industrial disability benefits are not offered to miscellaneous employees. The City provides industrial disability retirement benefit to safety employees. The industrial disability retirement benefit is a monthly allowance equal to 50% of final compensation. 14.a Packet Pg. 313 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Notes to the Basic Financial Statements For the Fiscal Year Ended June 30, 2020 - 86 - Note 10 – Pension Plans (Continued) B. City Plans (Continued) Benefits Provided (Continued) An employee’s beneficiary may receive the basic death benefit if the employee dies while actively employed. The employee must be actively employed with the City to be eligible for this benefit. An employee’s survivor who is eligible for any other pre-retirement death benefit may choose to receive that death benefit instead of this basic death benefit. The basic death benefit is a lump sum in the amount of the employee's accumulated contributions, where interest is currently credited at 7.5% per year, plus a lump sum in the amount of one month's salary for each completed year of current service, up to a maximum of six months’ salary. For purposes of this benefit, one month's salary is defined as the member's average monthly full-time rate of compensation during the 12 months preceding death. Upon the death of a retiree, a one-time lump sum payment of $500 will be made to the retiree’s designated survivor(s), or to the retiree’s estate. Benefit terms provide for annual cost-of-living adjustments to each employee’s retirement allowance. Beginning the second calendar year after the year of retirement, retirement and survivor allowances will be annually adjusted on a compound basis by 2%. Employees Covered At June 30, 2019, the measurement date, the following employees were covered by the benefit terms for each Plan: Employee Count Miscellaneous Safety Active employees 634 244 Transferred and terminated employees 1,012 216 Retired employees and beneficiaries 1,517 737 Total 3,163 1,197 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. For the year ended June 30, 2020, the average active miscellaneous and safety employee contribution rates were 7.545% and 9.394% of annual pay, respectively, and the employer’s contribution rates were 10.815% and 20.683% of miscellaneous and safety employee annual payroll, respectively. 14.a Packet Pg. 314 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Notes to the Basic Financial Statements For the Fiscal Year Ended June 30, 2020 - 87 - Note 10 – Pension Plans (Continued) B. City Plans (Continued) Contributions For the fiscal year ended June 30, 2020, the plan’s contributions made for each Plan was as follows: Miscellaneous Safety Aggregate Total765345 Contributions - employer 15,688,687$ 22,639,577$ 38,328,264$ Net Pension Liability The City’s net pension liability is measured as the total pension liability, less the pension plan’s fiduciary net position. The net pension liability of the Plan is measured as of June 30, 2019, using an annual actuarial valuation as of June 30, 2018 rolled forward to June 30, 2019 using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is shown on the following page. Actuarial Assumptions The total pension liabilities in the June 30, 2018 actuarial valuations were determined using the following actuarial assumptions: Actuarial Cost Method Actuarial Assumptions: Discount Rate Inflation Salary Increases Investment Rate of Return Mortality Rate Table Post Retirement Benefit Increase Derived using CalPERS’ Membership Data for all Funds. Contract COLA up to 2.75% until Purchasing Power Protection Allowance Floor on Purchasing Power applies, 2.75% thereafter Entry Age Normal in accordance with the requirement of GASB Statement No. 68 7.15% 2.75% Varies by Entry Age and Service 7.375% All other actuarial assumptions used in the June 30, 2018 valuation were based on the results of an actuarial experience study for the period from 1997 to 2011, including updates to salary increase, mortality, and retirement rates. The Experience Study report can be found on the CalPERS website under Forms and Publications. 14.a Packet Pg. 315 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Notes to the Basic Financial Statements For the Fiscal Year Ended June 30, 2020 - 88 - Note 10 – Pension Plans (Continued) B. City Plans (Continued) Discount Rate & Long-term Expected Rate of Return 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. Such cash flows were developed assuming that both members and employers will make their required contributions on time and as scheduled in all future years. Using historical returns of all the funds’ asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11-60 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 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 equivalent to the single equivalent rate calculated above and rounded down to the nearest one quarter of one percent. The table below reflects long-term expected real rate of return by asset class. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation. These geometric rates of return are net of administrative expenses. Asset Class New Strategic Allocation Real Return Years 1 - 10 1 Real Return Years 11 + 2 Global equity 50.00% 4.80% 5.98% Global fixed income 28.00% 1.00% 2.62% Inflation sensitive assets 0.00% 0.77% 1.81% Private equity 8.00% 6.30% 7.23% Real assets 13.00% 3.75% 4.93% Liquidity 1.00% 0.00% -0.92% 1 An expected inflation of 2.00% was used for this period. 2 An expected inflation of 2.92% was used for this period. The discount rate used to measure the total pension liability was 7.15% for the plan. To determine whether the municipal bond rate should be used in the calculation of a discount rate for each plan, CalPERS stress tested plans that would most likely result in a discount rate that would be different from the actuarially assumed discount rate. Based on the testing, none of the tested plans run out of assets. Therefore, the current 7.15% discount rate is adequate and the use of the municipal bond rate calculation is not necessary. The long term expected discount rate of 7.15% is applied to all plans in the Public Employees Retirement Fund (PERF). The stress test results are presented in a detailed report called “GASB Crossover Testing Report” that can be obtained from the CalPERS website under the GASB 68 Section. 14.a Packet Pg. 316 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Notes to the Basic Financial Statements For the Fiscal Year Ended June 30, 2020 - 89 - Note 10 – Pension Plans (Continued) B. City Plans (Continued) Changes in the Net Pension Liability The following table shows the changes in net pension liability recognized over the measurement period: Total Pension Liability Plan Fiduciary Net Position Net Pension Liability Balance at June 30, 2018 (Valuation Date) 571,860,880$ 413,926,586$ 157,934,294$ Changes in the year: Service cost 7,264,944 - 7,264,944 Interest on the total pension liabilities 40,448,534 - 40,448,534 Differences between expected and actual experience 6,286,583 - 6,286,583 Benefit payments, including refunds of members contributions (32,132,357) (32,132,357) - Contributions - employer - 13,870,437 (13,870,437) Contributions - employee - 3,255,149 (3,255,149) Net investment income - 26,959,611 (26,959,611) Administrative expenses - (294,423) 294,423 Net changes 21,867,704 11,658,417 10,209,287 Balance at June 30, 2019 (Measurement Date) 593,728,584$ 425,585,003$ 168,143,581$ Miscellaneous Plan Total Pension Liability Plan Fiduciary Net Position Net Pension Liability Balance at June 30, 2018 (Valuation Date) 796,863,657$ 539,457,785$ 257,405,872$ Changes in the year: Service cost 8,269,399 - 8,269,399 Interest on the total pension liabilities 56,383,004 - 56,383,004 Changes in assumptions - - - Differences between expected and actual experience 10,170,711 - 10,170,711 Benefit payments, including refunds of members contributions (45,191,159) (45,191,159) - Plan to plan resource movement - - - Contributions - employer - 19,557,103 (19,557,103) Contributions - employee - 2,698,657 (2,698,657) Net investment income - 35,115,561 (35,115,561) Administrative expenses - (383,710) 383,710 Net changes 29,631,955 11,796,452 17,835,503 Balance at June 30, 2019 (Measurement Date) 826,495,612$ 551,254,237$ 275,241,375$ Safety Plan 14.a Packet Pg. 317 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Notes to the Basic Financial Statements For the Fiscal Year Ended June 30, 2020 - 90 - Note 10 – Pension Plans (Continued) B. City Plans (Continued) Sensitivity of the Net Pension Liability to Changes in the Discount Rate The following presents the City’s net pension liability, calculated using the discount rate, as well as what the City’s net pension liability would be if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate: Discount Rate - 1% Current Discount Discount Rate + 1% (6.15%) Rate (7.15%) (8.15%) Miscellaneous Plan 243,884,259$ 168,143,581$ 105,594,444$ Safety Plan 386,929,259$ 275,241,375$ 184,071,665$ Aggregate Total 630,813,518$ 443,384,956$ 289,666,109$ Plan's Aggregate Net Pension Liability/(Asset) Pension Plan Fiduciary Net Position Detailed information about each 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, 2020, the City recognized pension expense in the amounts of $22,489,384 and $47,370,983, for the miscellaneous and safety plans, respectively. The amortization period differs depending on the source of the gain or loss. The difference between projected and actual earnings is amortized over 5-years straight line. All other amounts are amortized straight-line over the average expected remaining service lives of all members that are provided with benefits (active, inactive and retired) as of the beginning of the measurement period. The Expected Average Remaining Service Lifetime (“EARSL”) is calculated by dividing the total future service years by the total number of plan participants (active, inactive, and retired) in the risk pool. The EARSL for the Miscellaneous Plan for the 2018-19 measurement period is 2.1 years, which was obtained by dividing the total service years of 6,660 (the sum of remaining service lifetimes of the active employees) by 3,107 (the total number of participants: active, inactive, and retired). The EARSL for the Safety Plan for the 2018-19 measurement period is 2.4 years, which was obtained by dividing the total service years of 2,808 (the sum of remaining service lifetimes of the active employees) by 1,190 (the total number of participants: active, inactive, and retired). 14.a Packet Pg. 318 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Notes to the Basic Financial Statements For the Fiscal Year Ended June 30, 2020 - 91 - Note 10 – Pension Plans (Continued) B. City Plans (Continued) Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (Continued) At June 30, 2020 the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred outflows Deferred inflows of Resources of Resources Pension contributions made subsequent to measurement date 15,688,687$ -$ Difference between projected and actual earning on pension plan investments - (2,600,720) Changes in assumptions - (124,655) Differences between expected and actual experience 3,292,972 (72,037) Total 18,981,659$ (2,797,412)$ Miscellaneous Plan Deferred outflows Deferred inflows of Resources of Resources Pension contributions made subsequent to measurement date 22,639,577$ -$ Difference between projected and actual earning on pension plan investments - (3,631,200) Changes in assumptions - (343,619) Differences between expected and actual experience 5,932,915 (59,313) Total 28,572,492$ (4,034,132)$ Safety Plan Deferred outflows Deferred inflows of Resources of Resources Pension contributions made subsequent to measurement date 38,328,264$ -$ Difference between projected and actual earning on pension plan investments - (6,231,920) Changes in assumptions - (468,274) Differences between expected and actual experience 9,225,887 (131,350) Differences in proportions - - Total 47,554,151$ (6,831,544)$ Aggregate Totals 14.a Packet Pg. 319 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Notes to the Basic Financial Statements For the Fiscal Year Ended June 30, 2020 - 92 - Note 10 – Pension Plans (Continued) B. City Plans (Continued) For the Miscellaneous Plan and Safety Plan, $15,688,687 and $22,639,577, respectively, was reported as deferred outflows of resources related to pensions resulting from City’s contributions subsequent to the measurement date and will be recognized as a reduction of the net pension liability in the fiscal year ended June 30, 2021. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Fiscal Year Ending June 30, Miscellaneous Plan Safety Plan 2020 4,355,500$ 5,857,530$ 2021 (3,514,796) (3,456,490) 2022 (750,095) (1,017,769) 2023 404,951 515,512 2024 - - Thereafter - - 495,560$ 1,898,783$ Deferred Outflows/(Inflows) of Resources C. Successor Agency Plan Plan Description The Successor Agency Plan of the City of San Bernardino is available to full time employees employed by the Successor Agency to the San Bernardino Economic Development Agency. Part-time employees must meet specific criteria for participation. The Classic Plans are closed to new entrants. Benefit Provisions under the Plans are established by State statutes within the Public Employee’s Retirement Law. 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. Copies of the CalPERS annual financial report may be obtained from the CalPERS Executive Office – 400 P Street, Sacramento, CA 95814. Benefits Provided CalPERS provides retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. A classic safety and miscellaneous CalPERS member becomes eligible for Service Retirement upon attainment of age 50 and 55, respectively, with at least 5 years of credited service. The service retirement benefit is a monthly allowance equal to the product of the benefit factor, years of service, and final compensation. The final compensation is the monthly average of the member's highest 12 full-time equivalent monthly pay. Retirement benefits for classic safety and miscellaneous employees are calculated as 3% and 2.7%, respectively, of the average final 12 months compensation. 14.a Packet Pg. 320 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Notes to the Basic Financial Statements For the Fiscal Year Ended June 30, 2020 - 93 - Note 10 – Pension Plans (Continued) C. Successor Agency Plan (Continued) Benefits Provided (Continued) Participant is eligible for non-industrial disability retirement if he becomes disabled and has at least 5 years of credited service. There is no special age requirement. The standard non-industrial disability retirement benefit is a monthly allowance equal to 1.8% of final compensation, multiplied by service. Industrial disability benefits are not offered to miscellaneous employees. An employee’s beneficiary may receive the basic death benefit if the employee dies while actively employed. The employee must be actively employed with the City to be eligible for this benefit. An employee’s survivor who is eligible for any other pre-retirement death benefit may choose to receive that death benefit instead of this basic death benefit. The basic death benefit is a lump sum in the amount of the employee's accumulated contributions, where interest is currently credited at 7.5% per year, plus a lump sum in the amount of one month's salary for each completed year of current service, up to a maximum of six months’ salary. For purposes of this benefit, one month's salary is defined as the member's average monthly full-time rate of compensation during the 12 months preceding death. Upon the death of a retiree, a one-time lump sum payment of $500 will be made to the retiree’s designated survivor(s), or to the retiree’s estate. Benefit terms provide for annual cost-of-living adjustments to each employee’s retirement allowance. Beginning the second calendar year after the year of retirement, retirement and survivor allowances will be annually adjusted on a compound basis by 2%. Employees Covered At June 30, 2019, the measurement date, the following employees were covered by the benefit terms the Plan: Successor Agency Active employees 1 Transferred and terminated employees 34 Retired employees and beneficiaries 69 Total 104 14.a Packet Pg. 321 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Notes to the Basic Financial Statements For the Fiscal Year Ended June 30, 2020 - 94 - Note 10 – Pension Plans (Continued) C. Successor Agency Plan (Continued) 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 the CalPERS’ annual actuarial valuation process. For public agency cost-sharing plans covered by the Miscellaneous risk pools, the Plan’s actuarially determined rate is based on the estimated amount necessary to pay the Plan’s allocated share of the risk pool’s costs of benefits earned by employees during the year, and any unfunded accrued liability. The employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. For the measurement period ended June 30, 2019 (the measurement date), the active contribution rate was 7.784% of annual payroll for the Miscellaneous Classic Plan which was paid for by the employer. The average employer’s contribution rate was 15.206% of annual payroll for the Miscellaneous Classic Plan. For the year ended June 30, 2020, employer contributions made for the Successor Agency Miscellaneous Cost-sharing Plan was as follows: Successor Agency 765 Contributions - employer 420,125$ Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions The City’s net pension liability for each Plan is measured as the proportionate share of the net pension liability. The net pension liability of the Plans is measured as of June 30, 2019, and the total pension liability for each Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2018 rolled forward to June 30, 2019 using standard update procedures. The City’s proportion of the net pension liability was based on a projection of the City’s long-term share of contributions to the pension plans relative to the projected contributions of all participating employers, actuarially determined. As of measurement date June 30, 2019, the City reported net pension liability for its proportionate shares of the net pension liability of the Successor Agency Miscellaneous Plan as follows: Plan Total Pension Plan Fiduciary Net Plan Net Pension Liability Position Liability/(Asset) Balance at: 6/30/18 (Valuation date) 21,541,288$ 15,271,896$ 6,269,392$ Balance at: 6/30/19 (Measurement date) 21,737,488 15,077,093 6,660,395 Net Changes during 2018-2019 196,200 (194,803) 391,003 Increase (Decrease) 14.a Packet Pg. 322 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Notes to the Basic Financial Statements For the Fiscal Year Ended June 30, 2020 - 95 - Note 10 – Pension Plans (Continued) C. Successor Agency Plan (Continued) Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (Continued) The following is the approach established by the plan actuary to allocate the net pension liability and pension expense to the individual employers within the risk pool. (1) In determining a cost-sharing plan’s proportionate share, total amounts of liabilities and assets are first calculated for the risk pool as a whole on the valuation date (June 30, 2018). The risk pool’s fiduciary net position (“FNP”) subtracted from its total pension liability (“TPL”) determines the net pension liability (“NPL”) at the valuation date. (2) Using standard actuarial roll forward methods, the risk pool TPL is then computed at the measurement date (June 30, 2019). Risk pool FNP at the measurement date is then subtracted from this number to compute the NPL for the risk pool at the measurement date. For purposes of FNP in this step and any later reference thereto, the risk pool’s FNP at the measurement date denotes the aggregate risk pool’s FNP at June 30, 2019 less the sum of all additional side fund (or unfunded liability) contributions made by all employers during the measurement period (2018-19). (3) The individual plan’s TPL, FNP and NPL are also calculated at the valuation date. (4) Two ratios are created by dividing the plan’s individual TPL and FNP as of the valuation date from (3) by the amounts in step (1), the risk pool’s total TPL and FNP, respectively. (5) The plan’s TPL as of the Measurement Date is equal to the risk pool TPL generated in (2) multiplied by the TPL ratio generated in (4). The plan’s FNP as of the Measurement Date is equal to the FNP generated in (2) multiplied by the FNP ratio generated in (4) plus any additional side fund (or unfunded liability) contributions made by the employer on behalf of the plan during the measurement period. (6) The plan’s NPL at the Measurement Date is the difference between the TPL and FNP calculated in (5). The City’s proportionate share of the net pension liability for the Successor Agency Miscellaneous Plan as of June 30, 2018 and 2019 was as follows: Proportion June 30, 2018 0.06506% Proportion June 30, 2019 0.06500% Change - Increase (Decrease) -0.00006% For the year ended June 30, 2020, the City recognized pension expense in the amount of $927,740 for the Successor Agency Miscellaneous Plan. 14.a Packet Pg. 323 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Notes to the Basic Financial Statements For the Fiscal Year Ended June 30, 2020 - 96 - Note 10 – Pension Plans (Continued) C. Successor Agency Plan (Continued) Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (Continued) The amortization period differs depending on the source of the gain or loss. The difference between projected and actual earnings is amortized over 5-years straight line. All other amounts are amortized straight-line over the average expected remaining service lives of all members that are provided with benefits (active, inactive and retired) as of the beginning of the measurement period. The EARSL for PERF C for the measurement date ending June 30, 2019 is 3.8 years, which was obtained by dividing the total service years of 530,470 (the sum of remaining service lifetimes of the active employees) by 140,593 (the total number of participants: active, inactive, and retired) in PERF C. Inactive employees and retirees have remaining service lifetimes equal to 0. Total future service is based on the members’ probability of decrementing due to an event other than receiving a cash refund. At June 30, 2020, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows Deferred Inflows of Resources of Resources Pension contributions made subsequent to measurement date 420,125$ -$ Difference between projected and actual earnings on pension plan investments - (116,444) Adjustment due to differences in proportions - (173,061) Changes in assumptions 205,012 - Difference between actual and expected experience 426,751 - Difference between employer's actual contributions and proportionate share of contributions - (324,116) Total 1,051,888$ (613,621)$ Successor Agency Plan For the Successor Agency Miscellaneous Plan, $420,125 was reported as deferred outflows of resources related to pensions resulting from City’s contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the fiscal year ended June 30, 2021. 14.a Packet Pg. 324 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Notes to the Basic Financial Statements For the Fiscal Year Ended June 30, 2020 - 97 - Note 10 – Pension Plans (Continued) C. Successor Agency Plan (Continued) Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (Continued) Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Fiscal Year Ending June 30, Deferred Outflows/ (Inflows) of Resources 2021 197,175$ 2022 (211,468) 2023 8,905 2024 23,530 2025 - Thereafter - 18,142$ Actuarial Methods and Assumptions Used to Determine Total Pension Liability For the measurement period ended June 30, 2019 (the measurement date), the total pension liability was determined by rolling forward the June 30, 2018 total pension liability. Both the June 30, 2017 and the June 30, 2018 total pension liabilities were based on the following actuarial methods and assumptions: Actuarial Cost Method Actuarial Assumptions: Discount Rate Inflation Salary Increases Investment Rate of Return Mortality Rate Table Post Retirement Benefit Increase 7.15% 2.50% Varies by Entry Age and Service 7.15% Entry Age Normal in accordance with the requirement of GASB Statement No. 68 Derived using CalPERS’ Membership Data for all Funds Contract COLA up to 2.50% until Purchasing Power Protection Allowance Floor on Purchasing Power applies All other actuarial assumptions used in the June 30, 2018 valuation were based on the results of an actuarial experience study for the period from 1997 to 2011, including updates to salary increase, mortality, and retirement rates. The Experience Study report can be found on the CalPERS website under Forms and Publications. 14.a Packet Pg. 325 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Notes to the Basic Financial Statements For the Fiscal Year Ended June 30, 2020 - 98 - Note 10 – Pension Plans (Continued) C. Successor Agency Plan (Continued) Discount Rate The discount rate used to measure the total pension liability was 7.15%. To determine whether the municipal bond rate should be used in the calculation of a discount rate for each plan, CalPERS stress tested plans that would most likely result in a discount rate that would be different from the actuarially assumed discount rate. Based on the testing, none of the tested plans run out of assets. Therefore, the current 7.15% discount rate is adequate and the use of the municipal bond rate calculation is not necessary. The long term expected discount rate of 7.15% is applied to all plans in the Public Employees Retirement Fund. The stress test results are presented in a detailed report called “GASB Crossover Testing Report” that can be obtained at CalPERS’ website under the GASB 68 section. 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, staff took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Such cash flows were developed assuming that both members and employers will make their required contributions on time and as scheduled in all future years. Using historical returns of all the funds’ asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11-60 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 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 equivalent to the single equivalent rate calculated above and rounded down to the nearest one quarter of one percent. The table below reflects long-term expected real rate of return by asset class. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation. These geometric rates of return are net of administrative expenses. Assumed Asset Real Return Real Return Asset Class Allocation Years 1-10 1 Years 11+2 Global Equity 50.00% 4.80% 5.98% Fixed Income 28.00% 1.00% 2.62% Inflation Assets - 0.77% 1.18% Private Equity 8.00% 6.30% 7.23% Real Estate 13.00% 3.75% 4.93% Liquidity 1.00% - -0.92% 100% 1An expected inflation of 2.00% used for this period 2An expected inflation of 2.92% used for this period 14.a Packet Pg. 326 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Notes to the Basic Financial Statements For the Fiscal Year Ended June 30, 2020 - 99 - Note 10 – Pension Plans (Continued) C. Successor Agency Plan (Continued) 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 Successor Agency Miscellaneous Plan, calculated using the discount rate for the Successor Agency Miscellaneous 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 one percentage point lower or one percentage point higher than the current rate: Discount Rate - 1% Current Discount Discount Rate + 1% (6.15%) Rate (7.15%) (8.15%) 9,584,154$ 6,660,395$ 4,247,039$ Plan's Aggregate Net Pension Liability/(Asset) Pension Plan Fiduciary Net Position Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports. Payable to the Pension Plan At June 30, 2020, the Successor Agency reported a payable of $0 for the outstanding amount of contributions to the pension plan required for the year ended June 30, 2020. Note 11 – Other Postemployment Benefits A. City – Excluding Water Department (Water Enterprise Fund and Sewer Enterprise Fund) The City administers a single employer defined benefit healthcare plan (the Plan). The Plan provides healthcare and life insurance for eligible retirees and their surviving spouses through the City’s group health insurance plan. Life insurance premiums are paid 100% by retirees. The plan covers both active and retired members. Benefit provisions are established through negotiations between the City and various union bargaining groups. However, on August 1, 2012, the City filed a Chapter 9 petition for bankruptcy protection in the United States Bankruptcy Court. A Retiree Committee was appointed by the United States Trustee to represent the interests of the retired employees. 14.a Packet Pg. 327 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Notes to the Basic Financial Statements For the Fiscal Year Ended June 30, 2020 - 100 - Note 11 – Other Postemployment Benefits (Continued) A. City – Excluding Water Department (Water Enterprise Fund and Sewer Enterprise Fund) (Continued) On May 19, 2015, the City and the Retiree Committee reached an agreement to settle claims of retirees for lost health benefits. Pursuant to this settlement all retiree health benefits for employees hired after January 1, 2013 are eliminated. At June 30, 2017, a finite group of retirees, numbering fewer than sixteen and meeting specific criteria, continue to receive a subsidy of $116 per month with an annual increase capped at two percent per calendar year. These participants are placed in a City healthcare plan for Retirees only. This is a closed group and its beneficiaries are a declining number, gradually being removed from the limited ongoing benefit as they either pass away or become ineligible for other potential reasons. The settlement is part of the City’s Chapter 9 Plan of Adjustment effective June 15, 2017. As a result of this settlement, the City’s OPEB obligation of $29,753,601 has been reduced to zero as the City has eliminated post-employment benefits. B. Water Department Plan Description The City Water Department (Department) provides health benefits to all qualifying retirees and their spouses in accordance with Memorandums of Understanding under various labor agreements. The Department maintains the financial activity of the plan as a trust fund, and no separate financial report is publicly available. Employees Covered Employees are eligible for retiree health benefits if they retire from the Department on or after age 50 with at least 10, 12, or 15 years of service, depending on bargaining unit, and are eligible for a PERS pension. As of the June 30, 2019 measurement date, the following current and former employees were covered by the benefit terms under the OPEB Plan: Active plan members 260 Inactive employees or beneficiaries currently receiving benefits 161 Inactive plan members entitled to, but not yet receiving benefits - Total 421 14.a Packet Pg. 328 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Notes to the Basic Financial Statements For the Fiscal Year Ended June 30, 2020 - 101 - Note 11 – Other Postemployment Benefits (Continued) B. Water Department (Continued) Contributions The contribution requirements of plan members and the Department are established and may be amended by the Board. The required contribution is based on projected pay-as-you-go financing requirements, with an additional amount to prefund benefits as may be determined annually by the Board. The Department has established an irrevocable trust to which pre-funding contributions are made. For the fiscal year ended June 30, 2020, the Department’s contributions were $2,084,421, and the amount of contributions in the form of an implied subsidy were $518,000. Net OPEB Liability The Department’s net OPEB liability was measured as of June 30, 2019 and the total OPEB liability used to calculated the net OPEB liability was determined by an actuarial valuation dated June 30, 2018 that was rolled forward to determine the June 30, 2019 total OPEB liability, based on the following actuarial methods and assumptions: Actuarial Cost Method Actuarial Assumptions: Discount Rate 6.25% Inflation 2.75% Investment Rate of Return 6.25% Mortality Rate Healthcare Trend Rate Entry Age Normal CalPERS 1997-2015 Experience Study Non-Medicare - 7.5% for 2020, decreasing to an ultimate rate of 4.0% in 2076; Medicare - 6.5% for 2020, decreasing to an ultimate rate of 4.0% in 2076 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 weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: Asset Class Target Allocation Long-term Expected Real Rate of Return Fixed income 40.00% 1.47% Global equity 60.00% 4.82% Assumed long-term rate of inflation - 2.75% Expected long-term rate of return - 6.25% Total 100.00% 14.a Packet Pg. 329 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Notes to the Basic Financial Statements For the Fiscal Year Ended June 30, 2020 - 102 - Note 11 – Other Postemployment Benefits (Continued) B. Water Department (Continued) Discount Rate The discount rate used to measure the total OPEB liability was 6.25 percent. The projection of cash flows used to determine the discount rate assumed that the Department’s contributions will be made at rates equal to the actuarially determined contribution rates. Based on those assumptions, the OPEB plan’s fiduciary net position was projected to be available to make all projected OPEB payments for current and inactive employees and beneficiaries. Therefore, the long-term expected rate of return on OPEB plan investments was applied to all periods of projected benefit payments to determine the total OPEB liability. Changes in the Net OPEB Liability The changes in the net OPEB liability are as follows: Total OPEB Plan Fiduciary Net Net OPEB Liability Position Liability/(Asset) (a) (b) (c) = (a) - (b) Balance at June 30, 2018 39,684,988$ 25,307,407$ 14,377,581$ Changes Recognized for the Measurement Period: Service Cost 1,312,778 - 1,312,778 Interest on the total OPEB liability 2,512,269 - 2,512,269 Changes in benefit terms - - - Changes in assumptions - - - Differences between expected and actual experience - - - Contributions - employer - 2,615,932 (2,615,932) Net investment income - 2,036,956 (2,036,956) Benefit payments, including refunds of member contributions (1,602,932) (1,602,932) - Administrative expenses - (8,061) 8,061 Net Changes during July 1, 2018 to June 30, 2019 2,222,115 3,041,895 (819,780) Balance at June 30, 2019 (Measurement Date) 41,907,103$ 28,349,302$ 13,557,801$ Increase (Decrease) 14.a Packet Pg. 330 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Notes to the Basic Financial Statements For the Fiscal Year Ended June 30, 2020 - 103 - Note 11 – Other Postemployment Benefits (Continued) B. Water Department (Continued) Sensitivity of the Net OPEB Liability to Changes in the Discount Rate The following represents the net OPEB liability of the Department if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate, for measurement period ended June 30, 2019: Discount Rate - 1% Current Discount Discount Rate + 1% (5.25%) Rate (6.25%) (7.25%) 20,012,955$ 13,557,801$ 8,347,026$ Plan's Net OPEB Liability/(Asset) Sensitivity of the Net OPEB Liability to Changes in the Health Care Cost Trend Rates The following represents the net OPEB liability of the Department if it were calculated using a health care cost trend rates that are one percentage point lower or one percentage point higher than the current rate, for measurement period ended June 30, 2019: (6.5% Pre-Medicare (7.5% Pre-Medicare (8.5% Pre-Medicare decreasing to decreasing to decreasing to 5.5% Medicare) 6.5% Medicare) 7.5% Medicare) 7,667,862$ 13,557,801$ 20,893,365$ Plan's Net OPEB Liability/(Asset) Recognition of Deferred Outflows and Deferred Inflows of Resources Gains and losses related to changes in the total OPEB liability and fiduciary net position are recognized in OPEB expense systematically over time. Amounts are first recognized in OPEB expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to OPEB and are to be recognized in future OPEB expense. The recognition period differs depending on the source of the gain or loss. The net difference between projected and actual earnings on OPEB plan investments are recognized over five years, while all other deferred outflows and inflows are amortized over the average expected remaining service life of plan participants. For the June 30, 2019 measurement date, the average expected remaining service life is 6.4 years. 14.a Packet Pg. 331 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Notes to the Basic Financial Statements For the Fiscal Year Ended June 30, 2020 - 104 - Note 11 – Other Postemployment Benefits (Continued) B. Water Department (Continued) OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB For the fiscal year ended June 30, 2020, the Department recognized OPEB expense of $1,770,350. As of fiscal year ended June 30, 2020, the Department reported deferred outflows of resources related to OPEB from the following sources: Deferred outflows Deferred inflows of Resources of Resources OPEB contributions made subsequent to the measurement date 2,602,421$ -$ Differences between expected and actual experience 360,137 - Changes of assumptions - 732,440 Net difference between projected and actual earnings on OPEB plan investments - 988,922 2,962,558$ 1,721,362$ Total The $2,602,421 reported as deferred outflows of resources related to contributions subsequent to the June 30, 2019 measurement date will be recognized as a reduction of the net OPEB liability during the fiscal year ended June 30, 2021. Other amounts reported as deferred outflows/inflows of resources related to OPEB will be recognized as expense as follows: Fiscal Year OPEB Ending June 30 Expense 2021 (451,540)$ 2022 (452,540) 2023 (253,540) 2024 (169,761) 2025 (33,844) Thereafter - (1,361,225)$ C. Successor Agency The Successor Agency (Agency) administers a single employer defined benefit healthcare plan (the Plan). The Agency provides medical and dental plan coverage for retirees and their eligible surviving dependents. At June 30, 2020, a finite group of retirees and surviving spouses numbering fewer than eleven receive a subsidy of $128 per month. Because this is a closed plan with de minimis liability impact, the Successor Agency’s OPEB obligation of $1,583,335 has been reduced to zero and the minor annual costs are being reported on a pay as you go basis. 14.a Packet Pg. 332 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Notes to the Basic Financial Statements For the Fiscal Year Ended June 30, 2020 - 105 - Note 12 – Other Required Disclosures A. Expenditures Exceeding Appropriations For the year ended June 30, 2020, expenditures exceeded appropriations in the below functions of the following funds: Excess Expenditures Fund Function over Appropriations General Fund General government: City attorney:(6,917)$ Personnel salaries and benefits General Fund General government: Finance: Other (109,295) General Fund General government: Nondepartmental: Other (6,497,146) General Fund Debt service: Principal (300,030) General Fund Debt service: Interest and fiscal charges (11,257) Federal and State Grants Special Public safety: Police: Personnel salaries and benefits (552,340) Revenue Fund Federal and State Grants Special Streets: Public works: Personnel salaries and benefits (29,976) Revenue Fund Federal and State Grants Special Culture and recreation: Park, recreation and community services:(29,307) Revenue Fund Personnel salaries and benefits Federal and State Grants Special Debt service: Principal (29,150) Revenue Fund Federal and State Grants Special Debt service: Interest and fiscal charges (15,175) Revenue Fund RMRA Gas Tax Special Streets: Public works: Personnel salaries and benefits (75,524) Revenue Fund Measure I Special Revenue Fund Streets: Public works: Personnel salaries and benefits (48,478) Storm Drain Construction Capital Streets: Public works: Personnel salaries and benefits (44,984) Projects Fund Impact Fees Capital Projects Fund Streets: Public works: Personnel salaries and benefits (19,100) Impact Fees Capital Projects Fund Culture and recreation: Personnel salaries and benefits (9,932) B. Deficit Fund Balances/Net Position At June 30, 2020, the Governmental Activities Statement of Net Position had an unrestricted net position deficit of $(334,495,248). At June 30, 2020, the following proprietary funds, governmental funds, fiduciary funds have deficits that are anticipated to be funded from future grants, other revenues and operating transfers: Fund Type Fund Deficit Governmental Special Assessments Capital Projects Fund (17,380)$ Internal Service Workers' Compensation Fund (24,226,287) Internal Service Liability Insurance Fund (1,535,368) Internal Service Motorpool Fund (4,306,025) Internal Service Information Systems Fund (6,595,942) Fiduciary Successor Agency to the Economic Development (25,607,293) Agency of San Bernardino Private-purpose Trust Fund 14.a Packet Pg. 333 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Notes to the Basic Financial Statements For the Fiscal Year Ended June 30, 2020 - 106 - Note 12 – Other Required Disclosures (Continued) B. Deficit Fund Balances/Net Position (Continued) As of June 30, 2020, the General Fund does not have the financial capacity to fund such accumulated deficits. Therefore, management expects that funding for the accumulated deficits will be accomplished over a period of years. The accumulated deficits of the Workers’ Compensation Internal Service Fund and the Liability Insurance Internal Service Fund are due to higher claims experienced over a period of years, versus amounts charged to the various departments. Both these funds operate on a pay-as-you-go basis; as such the deficits in these funds are expected to change as claims are made. Management has paid and expects to pay for all accepted claims as and when they become due. Note 13 – Fund Balance Classification Fund balances as of June 30, 2020, for the governmental funds were categorized as nonspendable, restricted, committed, assigned, or unassigned for the following purposes: Federal and State Other General Grants Governmental Fund Fund Funds Total Nonspendable Prepaid expenditures 110,989$ -$ -$ 110,989$ Property held for resale 32,162,065 - - 32,162,065 Total nonspendable 32,273,054 - - 32,273,054 Restricted Housing - 16,795,284 19,535,005 36,330,289 Grants - 818,227 - 818,227 Street improvements - - 13,273,255 13,273,255 Cable TV - - 1,077,658 1,077,658 Law enforcement - - 2,906,357 2,906,357 Transportation - - 3,211,418 3,211,418 Sewer - - 9,710 9,710 Debt service 56,304 - 134,412 190,716 Capital projects - - 41,853,566 41,853,566 Parks 1,500,000 - - 1,500,000 Total restricted 1,556,304 17,613,511 82,001,381 101,171,196 Committed Animal control 68,387 - - 68,387 Emergency reserve 19,024,050 - - 19,024,050 Economic contingency reserve 12,682,700 - - 12,682,700 Total committed 31,775,137 - - 31,775,137 Assigned Budget carryovers and continuing appropriations 1,517,842 - - 1,517,842 - Total assigned 1,517,842 - - 1,517,842 Unassigned (deficit)597,818 - (17,380) 580,438 Total fund balances 67,720,155$ 17,613,511$ 81,984,001$ 167,317,667$ Major Funds 14.a Packet Pg. 334 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Notes to the Basic Financial Statements For the Fiscal Year Ended June 30, 2020 - 107 - Note 14 – Net Investment in Capital Assets The Government-wide Statement of Net Position reports net investment in capital assets as follows: Governmental Business-type Activities Activities Total Total capital assets, net 289,969,123$ 291,987,188$ 581,956,311$ Less related debt: Notes payable (4,308,000) - (4,308,000) Lease revenue bonds (2,751,781) - (2,751,781) California Infrastructure (274,558) - (274,558) Bonds payable - (83,813,621) (83,813,621) Unspent bond proceeds - 47,097,153 47,097,153 Net investment in capital assets 282,634,784$ 255,270,720$ 537,905,504$ Note 15 – Landfill Closure Liability The City operated a municipal non-hazardous solid waste facility, identified as the “Waterman Landfill”, from 1950 to 1960. The City is the primary responsible party for pollution remediation obligations related to the Waterman Landfill. During the 1990s, groundwater monitoring wells were installed and placed into service as part of the overall remediation plan. In 2004, it was determined that additional work was required to comply with state regulations. State regulatory agencies approved a plan for final closure of the Waterman Landfill in 2012. The City is currently in the operations maintenance and monitoring phase of the remediation project. Pollution remediation costs for the closure of the Waterman Landfill are estimated at $5,793,586 at June 30, 2020, measured using the expected cash flow technique. This estimate is subject to change in future periods due to various factors including changes in the remediation plan or operating conditions, the type of equipment and services that will be used, price increases or reductions for specific outlay elements such as ongoing monitoring requirements, changes in technology, or changes in legal or regulatory requirements. The liability is reported in the Integrated Waste Fund in the accompanying financial statements. Note 16 – Successor Agency Trust for Assets of Former Redevelopment Agency On December 29, 2011, the California Supreme Court upheld Assembly Bill X1 26 (the “Bill”) that provided for the dissolution of all redevelopment agencies in the State of California as of February 1, 2012. This action impacted the reporting entity of the City since the City had previously reported its redevelopment agency (commonly referred to as the “Economic Development Agency” or “EDA”) as a blended component unit within the City’s financial statements. 14.a Packet Pg. 335 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Notes to the Basic Financial Statements For the Fiscal Year Ended June 30, 2020 - 108 - Note 16 – Successor Agency Trust for Assets of Former Redevelopment Agency (Continued) The Bill provided that upon dissolution of the redevelopment agency, either the City or another unit of local government may serve as the “successor agency” to hold the assets of the dissolved redevelopment agency until they are distributed to other units of state and local government. On January 9, 2012, the City Council adopted resolution 2012-19, electing to serve as the Successor Agency to the former Economic Development Agency of the City of San Bernardino in accordance with the Bill. Upon redevelopment dissolution, activities of the dissolved redevelopment agency are reported in a fiduciary fund (private purpose trust fund) in the financial statements of the City. The Successor Agency is allocated revenue only in the amount that is necessary to pay the estimated payments on existing enforceable obligations of the former redevelopment agency until all enforceable obligations are paid in full and all assets are liquidated. These obligations are listing on a Recognized Obligation Payment Schedule (ROPS) biannually and are subject to the approval of the County Oversight Board and the California Department of Finance (“DOF”). On December 31, 2015, the DOF approved the City’s revised Long Range Property Management Plan (LRPMP), with the assets deemed for governmental use and future development properties to be transferred to the City of San Bernardino effective upon the date of the DOF’s approval of the LRPMP. At June 30, 2020, the Successor Agency had a deficit net position of $25,607,293 as a result of its total liabilities exceeding its total assets. The deficit is expected to be progressively eliminated as enforceable obligations are funded biannually with future property taxes. Note 17 – Consent Decree In 1996, the City of San Bernardino filed a complaint against the United States of America, Department of the Army to recover damages, response costs and other available remedies relating to contamination alleged to have originated at a World War II army installation known as Camp Ono. In March 2005, the United States District Court, Central Division entered judgment, in the form of a Consent Decree, in the matter of City of San Bernardino v. United States of America. The Consent Decree settles the City’s and the State’s claims arising from the groundwater contamination allegedly caused by the Army. The Consent Decree contains a number of provisions obligating the City (through the City’s Water Department) to operate and maintain the Newmark Groundwater Superfund site (Site). The Site consists of two operable units, the Newmark Operable Unit and the Muscoy Operable Unit. The Newmark Operable Unit was declared operational and functional in 1998. The Muscoy Operable unit was declared operational and functional in 2007. 14.a Packet Pg. 336 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Notes to the Basic Financial Statements For the Fiscal Year Ended June 30, 2020 - 109 - Note 17 – Consent Decree (Continued) The Consent Decree provided for a payment of $69 million from the Army to the City for performance of the work outlined in the Consent Decree. Upon acceptance of the Consent Decree, the Department received title to all facilities constructed by the United States Environmental Protection Agency (EPA) of the Site and agreed to operate and maintain the groundwater extraction and treatment system for a period of 50 years. The $69 million payment consisted of $59 million for operations and maintenance and $10 million for the construction of certain capital facilities that would be required in the future; the funds are subject to strict limitations, contained in the Consent Decree, as to how the money may be spent. Pursuant to the Consent Decree, $10 million, including interest earned, has been set aside to be used only for (i) funding construction of treatment and directly related transmission systems that expand the City’s Water Department’s capacity to deliver potable water and (ii) funding work performed by the City’s Water Department to complete construction of the Muscoy Operable Unit extraction system. These capital facility funds may not be used for costs incurred to operate, maintain, repair, or retrofit components of the site extraction of treatment systems constructed by EPA. In March 2006, the City’s Water Department entered into a Guaranteed Investment Contract (GIC) with AIG Match Funding Corporation. The Department invested $16,482,039 of excess Consent Decree funds into an interest bearing Escrow Fund investment with an interest rate of 4.95% per annum. These funds were invested to pay costs associated with the water facilities defined in the Consent Decree for years 2035-2056. An additional $50 million was used to purchase a blended insurance policy to provide a financial vehicle that provides cost cap coverage for the first 30 years of expenses. The terms of the GIC only provided the Department with the position of a secured creditor with respect to an AIG bankruptcy. As concerns rose regarding AIG’s financial credibility, in October 2009, the Department negotiated and accepted a “payout” in the amount of $18,661,876, which represented the principal and accrued interest as of that date. These funds are currently invested in a diversified portfolio managed by PFM Asset Management. The balance of restricted investments held at June 30, 2020 is $24,636,959. Note 18 – Jointly Governed Organizations and Joint Ventures Inland Valley Development Agency In January 1990, the City entered into a joint powers agreement with the Cities of Colton and Loma Linda and the County of San Bernardino to form the Inland Valley Development Agency (IVDA). The IVDA adopted a redevelopment plan, and its primary purpose is to promote the redevelopment of the former Norton Air Force Base and other areas within its project area. The IVDA board is comprised of three members from the City and two each from the other members. The primary sources of funding are tax increment and lease income. Additional financial information can be obtained by contacting the IVDA at 1601 E. Third Street, San Bernardino, CA 92408. 14.a Packet Pg. 337 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Notes to the Basic Financial Statements For the Fiscal Year Ended June 30, 2020 - 110 - Note 18 – Jointly Governed Organizations and Joint Ventures (Continued) San Bernardino International Airport Authority In May 1992, the City entered into a joint powers agreement with the Cities of Colton, Loma Linda, Highland and Redlands and the County of San Bernardino to form the San Bernardino International Airport Authority (SBIAA). SBIAA was created primarily for the purpose of acquiring, operating, repairing, maintaining and administering the aviation related portions of the former Norton Air Force Base property located in San Bernardino. Effective April 19, 1996, the City of Redlands withdrew from its membership in SBIAA. The board is comprised of two members from the City and one each from the other members. The primary sources of funding are loans, federal grants and lease income. Additional financial information can be obtained by contacting SBIAA at 1601 E. Third Street, San Bernardino, CA 92408. San Bernardino Regional Water Resource Authority In August 1998, the City entered into a joint powers agreement with the Inland Valley Development Agency (IVDA) and the San Bernardino Valley Municipal Water District (the District) to form the San Bernardino Regional Water Resources Authority (the Authority). The Authority was created primarily for the purpose of conducting a water resource and storage project. The Authority board is comprised of three members from the City, one member from IVDA and two from the District. The primary sources of funding are loans and grants. Additional financial information can be obtained by contacting the Authority at 201 North “E” Street, Third Floor, San Bernardino, CA 92401. Colton / San Bernardino Regional Tertiary Treatment and Water Reclamation Authority On August 2, 1994, the City of San Bernardino, through the Water Department formed a joint powers authority with the City of Colton to construct, operate, use and maintain tertiary wastewater treatment, disposal and water reclamations systems, including the Regional Rapid Infiltration and Extraction Facility (RIX). This authority is governed by a separate board consisting of four members; two appointed by the City through the Water Department's Board of Water Commissioners and two appointed by the City Council of the City of Colton. Construction of RIX was administered by the Santa Ana Watershed Project Authority and was substantially completed during 1996. Administration and operation was turned over at that time. The cities of San Bernardino and Colton each have an undivided interest in the real property and any related debt of the RIX projects based on an 80% / 20% split, respectively. Substantially all of the assets of RIX are in the form of capital assets. RIX has no liabilities. Annual revenues (in the form of contributions from the two member cities) are equal to annual expenses. The Water Department’s equity interest in this joint venture has been reported as an investment in joint venture in the accompanying statement of net position. The RIX complete financial statements may be obtained at the City of San Bernardino Municipal Water Department at 1350 South E. Street, San Bernardino, CA 92418. 14.a Packet Pg. 338 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Notes to the Basic Financial Statements For the Fiscal Year Ended June 30, 2020 - 111 - Note 18 – Jointly Governed Organizations and Joint Ventures (Continued) West End Water Development, Treatment and Conservation Joint Powers Authority On August 15, 1990, the City of San Bernardino joined the West End Water Development, Treatment and Conservation Joint Powers Authority (WEJPA) as a financing vehicle for construction of water facilities. A three-member board consisting of one representative from each agency’s governing body governs the WEJPA. This joint venture was formed to provide a financing vehicle for the three member agencies. This joint venture is currently inactive. Note 19 – Commitments and Contingencies A. Litigation The City is a defendant in numerous lawsuits and is also subject to other claims, including claims for workers’ compensation payments. The City generally uses outside counsel to adjudicate lawsuits. Each claim and case is initially rated by the City’s risk management team and outside Claims Examiner. At that stage, if a claim or case is likely to exceed the City’s self-insured retention of $1 million, the case or claim is reported to the City’s excess insurance carrier(s). In addition, upon the filing of a case and assignment of that case to outside counsel, outside counsel is required to provide the City with a full report identifying the City’s potential exposure and the likely fees and costs to take the case to trial. Such report may be delayed if the case is expected to be resolved relatively quickly. Only cases rated “probable” for recovery from the City are reported for financial statement purposes. The dollar value reserved for any eventual payout on any said case is based upon the facts of the case, industry standards relative to the type of injury or damage involved, and the experience of the handling attorney. The City used a third-party actuary to perform a workers’ compensation reserve analysis and the general liability claims analysis (estimated loss reserve) as of June 30, 2020. The actuary used a general approach that relied upon actual loss development patterns for the City of San Bernardino to the extent they are available and is augmented with industry benchmark loss development patterns based on insurance industry sources and patterns to project ultimate losses. While it is not possible to project the outcome of these lawsuits and claims, the City and its legal department have estimated that the liability for all such litigation and claims totaled approximately $33.56 million for the primary government as of June 30, 2020. These lawsuits and claims may be compromised and/or discharged pursuant to a plan of adjustment confirmed in the Bankruptcy Case. The City’s plan of adjustment became effective on the Effective Date, June 15, 2017, and all transactions necessary to implement the plan of adjustment closed. In the days that followed, the City made all required cash distributions on or shortly after the Effective Date. During the fiscal year 2020, the City has paid, and in the forthcoming three to five years, the City is committed to making settlement payments to the various claimant’s beneficiaries per the terms agreed upon under their respective Settlement Agreements. 14.a Packet Pg. 339 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Notes to the Basic Financial Statements For the Fiscal Year Ended June 30, 2020 - 112 - Note 19 – Commitments and Contingencies (Continued) A. Litigation (Continued) A copy of the Confirmation Order and the City’s Plan of Adjustment is available on the City’s website at: http://www.sbcity.org/cityhall/finance/chapter_9_bankruptcy/default.asp. Copies of other pleadings filed in the City’s Chapter 9 case and other information can be obtained directly from the records of the Bankruptcy Court. B. Federal and State Grants Amounts received or receivable from grantor agencies are subject to audits or adjustments by grantor agencies, principally the federal and state governments. Such audits could lead to disallowed claims under the terms of the grants, including amounts already collected, which may constitute a liability of the City. Note 20 – Subsequent Events On July 23, 2020, the City issued $19,850,000 in Taxable Pension Obligation Bonds (the “Series 2020 Bonds”) with a stated interest rate of 6.75% and a dated date of June 15, 2020 to refund the notes payable held by AMBAC and Preston Hollow Capital. Annual payments under the Series 2020 Bonds through the fiscal year 2047 term are marginally less than the remaining payments under the notes. There is no extension of the term on the long-term debt and the City’s legal obligation to make the Series 2020 Bond payments is the same as the obligation under the notes. All costs of issuance for the Series 2020 Bonds were borne by AMBAC and Preston Hollow Capital. 14.a Packet Pg. 340 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements 14.a Packet Pg. 341 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements REQUIRED SUPPLEMENTARY INFORMATION 14.a Packet Pg. 342 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Required Supplementary Information Budgetary Information For the Fiscal Year Ended June 30, 2020 - 113 - Budgetary Information The City adopts an operating budget annually during June to be effective July 1 for the ensuing fiscal year. Budgeted expenditures are adopted through the passage of a resolution. This resolution constitutes the maximum authorized expenditures for the fiscal year and cannot legally be exceeded except by subsequent amendments of the budget by the City Council. Following approval of the budget by the Mayor and City Council, department heads may make transfers of non-personnel appropriations within their department, as long as the total department budget allocation is not increased. Elected officials may make transfers and allocations within their department with notice to the Finance Director and without City Council approval. All other transfers of appropriations, including departmental transfers to and from personnel-related categories, require the special approval of the City Council. The legal level of budgetary control is considered to be personnel-related expenditures (i.e. personnel salaries and benefits) versus other expenditures within each department. For the fiscal year ended June 30, 2020, budgets were legally adopted for all City funds except the following: Special Revenue Funds Sewerline Maintenance Fund Debt Service Funds Verdemont Loan Fund Assessment District #1015 Fund Capital Projects Funds Park Construction Fee Fund Sewerline Construction Fund Street Construction Fund Public Improvements Fund Prop 1B Local Streets Fund All budgets are adopted on a basis consistent with generally accepted accounting principles (GAAP). At fiscal year-end, operating budget appropriations lapse; however, appropriations for incomplete capital improvements, equipment purchases, and contractual obligations can be carried over to the following fiscal year. Under Article XIIIB of the California Constitution (the Gann Spending Limitation Initiative), the City is restricted as to the amount of annual appropriations from the proceeds of taxes, and if proceeds of taxes exceed allowed appropriations, the excess must either be refunded to the State Controller, returned to the taxpayers through revised tax rates or revised fee schedules, or an excess in one year may be offset against a deficit in the following year. Further, Section 5 of Article XIIIB allows the City to designate a portion of fund balance for general contingencies to be used in future years without limitation. 14.a Packet Pg. 343 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Required Supplementary Information Budgetary Comparison Schedules – General Fund For the Fiscal Year Ended June 30, 2020 - 114 - Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES: Taxes 104,065,400$ 104,065,400$ 106,666,910$ 2,601,510$ Licenses and permits 10,580,000 10,580,000 11,864,775 1,284,775 Fines and forfeitures 1,790,900 1,790,900 1,593,101 (197,799) Use of money and property 350,000 350,000 1,312,396 962,396 Lease revenue 982,000 982,000 1,193,281 211,281 Intergovernmental 3,056,000 5,291,000 1,294,520 (3,996,480) Charges for services 5,403,400 5,495,834 5,751,781 255,947 Other revenues 2,474,800 2,866,698 4,714,118 1,847,420 Total revenues 128,702,500 131,421,832 134,390,882 2,969,050 EXPENDITURES: Current: General government Mayor Personnel salaries and benefits 640,600 575,183 552,726 22,457 Other 170,600 170,600 167,471 3,129 City council Personnel salaries and benefits 668,200 668,200 588,880 79,320 Other 263,600 270,672 228,243 42,429 City clerk Personnel salaries and benefits 440,700 414,482 393,638 20,844 Other 338,600 564,280 403,201 161,079 City attorney Personnel salaries and benefits 344,400 432,014 438,931 (6,917) Other 1,975,400 3,375,400 3,069,514 305,886 City manager Personnel salaries and benefits 2,166,900 2,200,796 1,935,620 265,176 Other 1,012,100 1,003,228 822,334 180,894 Human resources Personnel salaries and benefits 578,300 559,820 493,502 66,318 Other 486,500 877,985 631,113 246,872 Finance Personnel salaries and benefits 2,612,400 2,612,400 2,523,184 89,216 Other 1,061,000 1,069,330 1,178,625 (109,295) Nondepartmental Other 3,902,000 3,904,344 10,401,490 (6,497,146) Total general government 16,661,300 18,698,734 23,828,472 (5,129,738) Public safety Police Personnel salaries and benefits 71,513,400 71,442,107 68,771,793 2,670,314 Other 11,214,700 11,589,617 10,899,876 689,741 Total public safety 82,728,100 83,031,724 79,671,669 3,360,055 Budgeted Amounts 14.a Packet Pg. 344 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Required Supplementary Information Budgetary Comparison Schedules – General Fund (Continued) For the Fiscal Year Ended June 30, 2020 - 115 - Variance with Final Budget Actual Positive Original Final Amounts (Negative) Streets Public works Personnel salaries and benefits 8,353,400$ 8,353,400$ 7,271,954$ 1,081,446$ Other 6,836,500 8,602,908 7,643,602 959,306 Total streets 15,189,900 16,956,308 14,915,556 2,040,752 Culture and recreation Park, recreation and community services Personnel salaries and benefits 2,108,900 2,108,900 1,893,630 215,270 Other 1,458,700 1,458,700 1,331,891 126,809 Total culture and recreation 3,567,600 3,567,600 3,225,521 342,079 Community development Personnel salaries and benefits 2,230,200 2,499,470 2,259,591 239,879 Other 1,718,400 5,557,414 1,763,977 3,793,437 Total community development 3,948,600 8,056,884 4,023,568 4,033,316 Community service Personnel salaries and benefits 1,679,700 1,679,700 1,579,317 100,383 Other 898,000 1,287,431 1,155,723 131,708 Total community service 2,577,700 2,967,131 2,735,040 232,091 Debt service: Principal 1,540,800 1,540,800 1,840,830 (300,030) Interest and fiscal charges 932,500 932,500 943,757 (11,257) Total expenditures 127,146,500 135,751,681 131,184,413 4,567,268 REVENUES OVER (UNDER) EXPENDITURES 1,556,000 (4,329,849) 3,206,469 7,536,318 OTHER FINANCING SOURCES (USES) Proceeds from sale of capital assets - - 92,029 92,029 Transfers out (1,500,000) (118,755) (118,755) - Total other financing sources (uses)(1,500,000) (118,755) (26,726) 92,029 CHANGE IN FUND BALANCE 56,000$ (4,448,604)$ 3,179,743 7,628,347$ Fund Balance: Beginning of year 64,540,412 End of year 67,720,155$ Budgeted Amounts 14.a Packet Pg. 345 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Required Supplementary Information Budgetary Comparison Schedules – Federal and State Grants Special Revenue Fund For the Fiscal Year Ended June 30, 2020 - 116 - Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES: Use of money and property -$ -$ 86,303$ 86,303$ Intergovernmental 10,382,024 14,406,904 9,303,164 (5,103,740) Other revenues - - 18,958 18,958 Total revenues 10,382,024 14,406,904 9,408,425 (4,998,479) EXPENDITURES: Current: General government City manager Other - 562,918 505,010 57,908 Total general government - 562,918 505,010 57,908 Public safety Police Personnel salaries and benefits 968,200 1,565,421 2,117,761 (552,340) Other 75,000 889,532 654,758 234,774 Total public safety 1,043,200 2,454,953 2,772,519 (317,566) Streets Public works Personnel salaries and benefits 1,000 5,056 35,032 (29,976) Other 3,881,101 4,376,622 711,311 3,665,311 Total streets 3,882,101 4,381,678 746,343 3,635,335 Budgeted Amounts 14.a Packet Pg. 346 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Required Supplementary Information Budgetary Comparison Schedules – Federal and State Grants Special Revenue Fund (Continued) For the Fiscal Year Ended June 30, 2020 - 117 - Variance with Final Budget Actual Positive Original Final Amounts (Negative) Culture and recreation Park, recreation and community services Personnel salaries and benefits -$ -$ 29,307$ (29,307)$ Other 1,440,000 1,783,773 1,423,469 360,304 Total culture and recreation 1,440,000 1,783,773 1,452,776 330,997 Community development Personnel salaries and benefits 653,200 569,496 478,237 91,259 Other 5,317,500 7,400,352 2,309,359 5,090,993 Total community development 5,970,700 7,969,848 2,787,596 5,182,252 Community service Personnel salaries and benefits 482,536 539,264 469,692 69,572 Other 341,543 509,575 395,120 114,455 Total community service 824,079 1,048,839 864,812 184,027 Debt Service: Principal - 464,850 494,000 (29,150) Interest and fiscal charges - 242,018 257,193 (15,175) Total expenditures 13,160,080 18,908,877 9,880,249 9,028,628 CHANGE IN FUND BALANCE (2,778,056)$ (4,501,973)$ (471,824) 4,030,149$ FUND BALANCE: Beginning of year 18,085,335 End of year 17,613,511$ Budgeted Amounts 14.a Packet Pg. 347 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Required Supplementary Information Schedule of Changes in the Net Pension Liability and Related Ratios For the Fiscal Year Ended June 30, 2020 - 118 - Measurement Period 2013-14 1 2014-15 2015-16 2016-17 2017-18 2018-19 Total Pension Liability Service cost 7,664,862$ 7,442,643$ 7,155,797$ 7,045,162$ 6,941,229$ 7,264,944$ Interest on total pension liability 35,857,877 36,972,628 37,886,480 38,182,872 38,956,825 40,448,534 Differences between expected and actual experience - (4,628,505) (6,107,773) (8,734,519) (1,512,789) 6,286,583 Changes in assumptions - (8,789,538) - 30,840,588 (2,617,743) - Changes in benefit terms - - - - - - Benefit payments, including refunds of employee contributions (24,178,446) (25,414,126) (27,022,461) (29,607,481) (30,834,523) (32,132,357) Net change in total pension liability 19,344,293 5,583,102 11,912,043 37,726,622 10,932,999 21,867,704 Total pension liability - beginning 486,361,821 505,706,114 511,289,216 523,201,259 560,927,881 571,860,880 Total pension liability - ending (a)505,706,114$ 511,289,216$ 523,201,259$ 560,927,881$ 571,860,880$ 593,728,584$ Plan fiduciary net position Contributions - employer 10,201,167$ 8,328,349$ 9,535,349$ 9,782,993$ 11,868,160$ 13,870,437$ Contributions - employee 4,422,413 3,362,371 3,307,239 3,005,285 3,003,123 3,255,149 Investment income (net of admin expenses) 58,763,840 8,671,204 2,060,677 41,369,230 33,535,039 26,959,611 Benefit payments (24,178,446) (25,414,126) (27,022,461) (29,607,481) (30,834,523) (32,132,357) Other - (435,431) (230,854) (553,567) (1,808,998) (294,423) Net change in plan fiduciary net position 49,208,974 (5,487,633) (12,350,050) 23,996,460 15,762,801 11,658,417 Plan fiduciary net position - beginning 342,796,034 392,005,008 386,517,375 374,167,325 398,163,785 413,926,586 Plan fiduciary net position - ending (b)392,005,008$ 386,517,375$ 374,167,325$ 398,163,785$ 413,926,586$ 425,585,003$ Net pension liability - ending (a)-(b)113,701,106$ 124,771,841$ 149,033,934$ 162,764,096$ 157,934,294$ 168,143,581$ Plan fiduciary net position as a percentage of the total pension liability 77.52% 75.60% 71.51% 70.98% 72.38% 71.68% Covered payroll 41,173,517$ 42,405,805$ 41,939,966$ 37,664,590$ 37,507,992$ 38,879,075$ Net pension liability as a percentage of covered payroll 276.15% 294.23% 355.35% 432.14% 421.07% 432.48% Notes to Schedule: 1 Historical information is presented only for measurement periods for which GASB 68 is applicable. As of June 30, 2020 Benefit Changes:The figures above do not include any liability impact that may have resulted from plan changes which occurred after the June 30, 2018 valuation date. This applies for voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes). Changes of Assumptions:None in 2019. In 2018, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Assumptions December 2017. There were no changes in the discount rate. In 2017, the discount rate was reduced from 7.65 percent to 7.15 percent. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense). In 2014, amounts reported were based on the 7.5 percent discount rate. City Miscellaneous Plan - 53 14.a Packet Pg. 348 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Required Supplementary Information Schedule of Changes in the Net Pension Liability and Related Ratios (Continued) For the Fiscal Year Ended June 30, 2020 - 119 - Measurement Period 2013-14 1 2014-15 2015-16 2016-17 2017-18 2018-19 Total Pension Liability Service cost 11,208,178$ 9,902,473$ 9,581,356$ 10,668,244$ 7,839,902$ 8,269,399$ Interest on total pension liability 48,966,477 50,392,288 52,179,027 53,181,646 54,332,493 56,383,004 Differences between expected and actual experience - (5,975,828) 104,464 (6,077,710) (652,443) 10,170,711 Changes in assumptions - (12,404,993) - 44,897,552 (3,779,819) - Changes in benefit terms - - - - - - Benefit payments, including refunds of employee contributions (34,402,815) (36,206,443) (37,558,743) (41,247,705) (42,567,625) (45,191,159) Net change in total pension liability 25,771,840 5,707,497 24,306,104 61,422,027 15,172,508 29,631,955 Total pension liability - beginning 664,483,681 690,255,521 695,963,018 720,269,122 781,691,149 796,863,657 Total pension liability - ending (a)690,255,521$ 695,963,018$ 720,269,122$ 781,691,149$ 796,863,657$ 826,495,612$ Plan fiduciary net position Contributions - employer 18,245,106$ 12,378,212$ 13,617,432$ 11,308,879$ 16,518,568$ 19,557,103$ Contributions - employee 5,184,692 3,351,555 3,539,959 2,363,002 2,505,657 2,698,657 Investment income (net of admin expenses) 78,093,954 11,406,991 2,507,728 54,968,745 43,963,504 35,115,561 Benefit payments (34,402,815) (36,206,443) (37,558,743) (41,247,705) (42,567,625) (45,191,159) Other - (579,829) (311,119) (730,424) (2,347,257) (383,710) Net change in plan fiduciary net position 67,120,937 (9,649,514) (18,204,743) 26,662,497 18,072,847 11,796,452 Plan fiduciary net position - beginning 455,455,761 522,576,698 512,927,184 494,722,441 521,384,938 539,457,785 Plan fiduciary net position - ending (b)522,576,698$ 512,927,184$ 494,722,441$ 521,384,938$ 539,457,785$ 551,254,237$ Net pension liability - ending (a)-(b)167,678,823$ 183,035,834$ 225,546,681$ 260,306,211$ 257,405,872$ 275,241,375$ Plan fiduciary net position as a percentage of the total pension liability 75.71% 73.70% 68.69% 66.70% 67.70% 66.70% Covered payroll 39,718,552$ 36,543,185$ 35,506,229$ 35,443,848$ 25,845,264$ 26,493,446$ Net pension liability as a percentage of covered payroll 422.17% 500.88% 635.23% 734.42% 995.95% 1038.90% Notes to Schedule: 1 Historical information is presented only for measurement periods for which GASB 68 is applicable. As of June 30, 2020 Benefit Changes:The figures above do not include any liability impact that may have resulted from plan changes which occurred after the June 30, 2018 valuation date. This applies for voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes). Changes of Assumptions:None in 2019. In 2018, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Assumptions December 2017. There were no changes in the discount rate. In 2017, the discount rate was reduced from 7.65 percent to 7.15 percent. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense). In 2014, amounts reported were based on the 7.5 percent discount rate. City Safety Plan - 54 14.a Packet Pg. 349 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Required Supplementary Information Schedule of the Successor Agency’s Proportionate Share of the Net Pension Liability and Related Ratios For the Fiscal Year Ended June 30, 2020 - 120 - Measurement period, year ended 6/30/2014 1 6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/2019 Plan's proportion of the net pension liability 0.061320% 0.0653236% 0.0654569% 0.0645053% 0.0650604% 0.0649982% Plan's proportionate share of the net pension liability 3,815,585$ 4,483,755$ 5,664,045$ 6,397,158$ 6,269,392$ 6,660,396$ Plan's covered payroll 451,000$ 464,530$ 89,988$ 89,988$ 92,688$ 95,468$ Plan's proportionate share of the net pension liability as a percentage of covered payroll 846.03% 965.22% 6294.22% 7108.90% 6764.00% 6976.55% Plan's fiduciary net position 17,279,507$ 15,896,118$ 14,686,614$ 15,233,189$ 15,271,896$ 15,077,093$ Plan's fiduciary net position as a percentage of the total pension liability 81.91% 78.00% 72.17% 70.43% 70.90% 69.36% Plan's proportionate share of aggregate employer contributions 60,842$ 19,656$ 280,440$ 313,887$ 347,304$ 410,556$ Notes to Schedule: 1 Historical information is presented only for measurement periods for which GASB 68 is applicable. For the Year Ended June 30, 2020 Successor Agency Plan - 1414 14.a Packet Pg. 350 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Required Supplementary Information Schedule of Contributions – Pension For the Fiscal Year Ended June 30, 2020 - 121 - Contributions in Contributions Relation to the as a Actuarially Actuarially Contribution Employer's Percentage of Determined Determined Deficiency Covered Covered Fiscal Year Contribution Contribution 2 (Excess) Payroll Payroll 2013-14 1 10,201,167$ (10,201,167)$ -$ 41,173,517$ 24.78% 2014-15 8,328,349 (8,328,349) - 42,405,805 19.64% 2015-16 9,535,349 (9,535,349) - 41,939,966 22.74% 2016-17 9,782,993 (9,782,993) - 37,664,590 25.97% 2017-18 11,868,160 (11,868,160) - 37,507,992 31.64% 2018-19 13,870,437 (13,870,437) - 38,879,075 35.68% 2019-20 15,688,687 (15,688,687) - 39,948,250 39.27% Notes to Schedule Valuation date: 6/30/2018 Methods and assumptions used to determine contribution rates: Actuarial cost method Entry Age Normal Amortization method/period For details, see June 30, 2016 Funding Valuation Report Asset valuation method Actuarial Value of Assets. For details, see June 30, 2016 Funding Valuation Report. Inflation 2.75% Salary increases Varies by entry age and service Payroll growth 3.00% Investment rate of return 7.375%, net of pension plan investment and administrative expenses, including inflation Retirement age Mortality The probabilities of retirement are based on the 2014 CalPERS Experience study for the period from 1997 to 2011. The probabilities of mortality are based on the 2014 CalPERS Experience Study for the period from 1997 to 2011. Pre-retirement and Post-retirement mortality rates include 20 years of projected mortality improvement using Scale BB published by the Society of Actuaries. City Miscellaneous Plan - 53 1 Historical information is presented only for measurement periods for which GASB 68 is applicable. 2 Employers are assumed to make contributions equal to the actuarially determined contributions. However, some employers may choose to make additional contributions towards their unfunded liability. Employer contributions for such plans exceed the actuarially determined contributions. The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2018-19 were derived from the June 30, 2016 funding valuation report. As of June 30, 2020 14.a Packet Pg. 351 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Required Supplementary Information Schedule of Contributions – Pension (Continued) For the Fiscal Year Ended June 30, 2020 - 122 - Contributions in Contributions Relation to the as a Actuarially Actuarially Contribution Employer's Percentage of Determined Determined Deficiency Covered Covered Fiscal Year Contribution Contribution 2 (Excess) Payroll Payroll 2013-14 1 18,245,106$ (18,245,106)$ -$ 39,718,552$ 45.94% 2014-15 12,378,212 (12,378,212) - 36,543,185 33.87% 2015-16 13,617,432 (13,617,432) - 35,506,229 38.35% 2016-17 11,308,879 (11,308,879) - 35,443,848 31.91% 2017-18 16,518,568 (16,518,568) - 25,845,264 63.91% 2018-19 19,557,103 (19,557,103) - 26,493,446 73.82% 2019-20 22,639,577 (22,639,577) - 27,222,016 83.17% Notes to Schedule Valuation date: 6/30/2018 Methods and assumptions used to determine contribution rates: Actuarial cost method Entry Age Normal Amortization method/period For details, see June 30, 2016 Funding Valuation Report Asset valuation method Actuarial Value of Assets. For details, see June 30, 2016 Funding Valuation Report. Inflation 2.75% Salary increases Varies by entry age and service Payroll growth 3.00% Investment rate of return 7.375%, net of pension plan investment and administrative expenses, including inflation Retirement age Mortality The probabilities of mortality are based on the 2014 CalPERS Experience Study for the period from 1997 to 2011. Pre-retirement and Post-retirement mortality rates include 20 years of projected mortality improvement using Scale BB published by the Society of Actuaries. The probabilities of retirement are based on the 2014 CalPERS Experience study for the period from 1997 to 2011. City Safety Plan - 54 1 Historical information is presented only for measurement periods for which GASB 68 is applicable. 2 Employers are assumed to make contributions equal to the actuarially determined contributions. However, some employers may choose to make additional contributions towards their unfunded liability. Employer contributions for such plans exceed the actuarially determined contributions. The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2018-19 were derived from the June 30, 2016 funding valuation report. As of June 30, 2020 14.a Packet Pg. 352 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Required Supplementary Information Schedule of Contributions – Pension (Continued) For the Fiscal Year Ended June 30, 2020 - 123 - Contributions in Contributions Relation to the as a Actuarially Actuarially Contribution Employer's Percentage of Determined Determined Deficiency Covered Covered Fiscal Year Contribution 2 Contribution (Excess) Payroll Payroll 2013-14 1 60,842$ (60,842)$ -$ 451,000$ 13.49% 2014-15 19,656 (19,656) - 464,530 4.23% 2015-16 280,440 (280,440) - 89,988 311.64% 2016-17 313,887 (313,887) - 89,988 348.81% 2017-18 347,304 (347,304) - 92,688 374.70% 2018-19 410,556 (410,556) - 95,468 430.04% 2019-20 420,125 (420,125) - 98,094 428.29% Notes to Schedule Valuation date: 6/30/2018 Change in Benefit Terms: None Changes in Assumptions: There were no changes in assumptions in 2019. In 2018, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Actuarial Assumptions December 2017. There were no changes in the discount rate in 2019. In 2017, the accounting discount rate was reduced from 7.65 percent to 7.15 percent. In 2016, there were no changes in the discount rate. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense). In 2014, amounts reported were based on the 7.5 percent discount rate. 1 Historical information is presented only for measurement periods for which GASB 68 is applicable. 2 Employers are assumed to make contributions equal to the actuarially determined contributions. However, some employers may choose to make additional contributions towards their unfunded liability. Employer contributions for such plans exceed the actuarially determined contributions. 14.a Packet Pg. 353 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Required Supplementary Information Schedule of Changes in Net OPEB Liability and Related Ratios For the Fiscal Year Ended June 30, 2020 - 124 - Measurement period, year ended: 2016-17 1 2017-18 2018-19 Total OPEB liability Service cost 1,036,000$ 1,067,080$ 1,312,778$ Interest 2,322,000 2,449,681 2,512,269 Changes of benefit terms - (640,849) - Differences between expected and actual experience - 523,834 - Changes of assumptions - (1,065,369) - Benefit payments, including refunds of member contributions (1,118,000) (1,554,389) (1,602,932) Net change in total OPEB liability 2,240,000 779,988 2,222,115 Total OPEB liability - beginning 36,665,000 38,905,000 39,684,988 Total OPEB liability - ending (a)38,905,000$ 39,684,988$ 41,907,103$ OPEB fiduciary net position Contributions - employer 2,602,000$ 2,673,389$ 2,615,932$ Net investment income 2,204,000 1,848,262 2,036,956 Benefit payments, including refunds of member contributions (1,118,000) (1,554,389) (1,602,932) Administrative expense (7,000) (7,855) (8,061) Net change in plan fiduciary net position 3,681,000 2,959,407 3,041,895 Plan fiduciary net position - beginning 18,667,000 22,348,000 25,307,407 Plan fiduciary net position - ending (b)22,348,000 25,307,407 28,349,302 Plan net OPEB liability - ending (a) - (b)16,557,000$ 14,377,581$ 13,557,801$ Plan fiduciary net position as a percentage of the total OPEB liability 57.44% 63.77% 67.65% Covered payroll 19,132,000$ 16,768,495$ 17,981,957$ Plan net OPEB liability as a percentage of covered payroll 86.54% 85.74% 75.40% 1 Historical information is presented only for measurement periods for which GASB 75 is applicable. Changes in assumptions:Demographic assumptions were updated to CalPERS 1997-2015 Experience Study; assumed Medical Plan in retirement updated to: (1) Non-Medicare - Kaiser: 55%; Anthem HMO/PPO: 30%/15%; Medicare - Kaiser: 60%; Anthem: 40%; (2) Life Insurance Participation updated to 90%; (3) Mortality improvement scale was updated to Scale MP-2018. Benefit changes:Per updated MOUs, benefit caps increase at the average percentage difference (up to 10%) of HMO premiums from year to year, except the Mid-Management cap is frozen in line with other bargaining units. Prior increase to future caps was 90% of average difference in HMO premiums from year to year. 14.a Packet Pg. 354 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Required Supplementary Information Schedule of Contributions – OPEB For the Fiscal Year Ended June 30, 2020 - 125 - Contributions in Contributions Relation to the as a Actuarially Actuarially Contribution Percentage of Determined Determined Deficiency Covered Covered Fiscal Year Contribution Contribution 2 (Excess) Payroll Payroll 2017-18 1 2,592,000$ (2,673,389)$ (81,389)$ 16,768,495$ 15.94% 2018-19 2,760,000 (2,615,932) 144,068 17,981,957 14.55% 2019-20 2,728,000 (2,602,421) 125,579 19,691,462 13.22% Notes to Schedule Valuation date: 6/30/2018 Methods and assumptions used to determine contribution rates: Actuarial cost method Entry Age Normal, level percentage of pay Amortization method/period Asset valuation method Inflation 2.75% Discount rate 6.25% Healthcare cost-trend rates Mortality Level percentage of pay over 14.3-year average remaining fixed Actuarial value; asset gains/losses recognized over 5 years Non-Medicare - 7.5% for 2020, decreasing to an ultimate rate of 4.0% in 2076; Medicare - 6.5% for 2020, decreasing to an ultimate rate of 4.0% in 2076 CalPERS 1997-2015 Experience Study The actuarial methods and assumptions used to set the actuarially determined contributions for fiscal year 2019-20 were from the June 30, 2018 actuarial valuation. 1 Historical information is presented only for measurement periods for which GASB 75 is applicable. 2 Employers are assumed to make contributions equal to the actuarially determined contributions. However, some employers may choose to make additional contributions towards their unfunded liability. Employer contributions for such plans exceed the actuarially determined contributions. 14.a Packet Pg. 355 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements COMBINING FINANCIAL STATEMENTS AND SCHEDULES 14.a Packet Pg. 356 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Non-Major Governmental Funds - 126 - Special Revenue Funds Special revenue funds are used to account for specific revenues that are legally restricted to expenditure for particular purposes. Cable TV Fund – This fund is used to account for the regulatory oversight of the City’s cable companies for franchise compliance, consumer protection, and franchise renewal negotiations, as well as operating two access channels. Asset Seizure Fund – This fund is used for the investigation, detection, and prosecution of criminal activities. Funding is provided by criminal assets seized under existing state and federal statutes. Low and Moderate Income Housing Fund – This fund is used for the continued maintenance and operations of low and moderate income housing project activities of the former redevelopment agency. This fund was established on February 1, 2012, when the City elected to become the Housing Successor to the housing related activities of the former redevelopment agency. Alternative Transportation Fund – This fund is used to account for the receipt and disbursement of funds received per Assembly Bill 2766, which imposed an additional registration fee on motor vehicles. These revenues are to be used to reduce air pollution from mobile sources and for related planning, monitoring, enforcement, and technical studies necessary for the implementation of the California Clean Air Act of 1988. RMRA Gas Tax Fund – This fund is used to account for the receipt of gasoline tax revenue paid to the City as a subvention from the State of California for SB-1. These funds are transferred to the General Fund to partially support maintenance activities and to finance street construction projects as provided by State law. Special Gas Tax Fund – This fund is used to account for the receipt of gasoline tax revenue paid to the City as a subvention from the State of California. These funds are transferred to the General Fund to partially support maintenance activities and to finance street construction projects as provided by State law. Traffic Safety Fund – This fund is used for the recording of the City’s share of California Vehicle Code fines collected by San Bernardino County. Measure I Fund – This fund is used to account for the local street improvements as provided for by the San Bernardino County Measure I Sales Tax. Sewerline Maintenance Fund – This fund is used to account for the cost of maintaining sewer lines as paid for from a portion of sewer revenues. 14.a Packet Pg. 357 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Non-Major Governmental Funds - 127 - Debt Service Funds Debt service funds are used to account for debt service transactions including revenue collection and payments of principal and interest on long-term obligations. Verdemont Loan Fund – This fund is used to account for the collection of assessments from property owners and for the remittance of such assessments to the loan for improvements in the Verdemont area. Assessment District #1015 Fund – This fund is used to account for the collection of assessments from property owners and for the remittance of such assessments to the Successor Agency of the former redevelopment agency (Economic Development Agency) and other City funds as required by the Improvement Bond Act of 1915 and related California State statutes for this district. Capital Projects Funds Capital projects funds are used to account for the acquisition and construction of major capital facilities other than those financed by proprietary funds. Verdemont Fund – This fund is used to account for development fees collected for improvements in the Verdemont area. Park Construction Fee Fund – This fund is used for park land acquisition and development. Principal revenue sources are parks acquisition and development fees collected from developers and state revenues for park development. Sewerline Construction Fund – This fund is used for construction of sewer collection systems from development revenues. Storm Drain Construction Fund – This fund is used for construction of storm drain facilities through the City from development revenues. Special Assessments Fund – This fund is used to account for assessment districts related to improvement, construction, and maintenance, including landscape maintenance, sewerline maintenance, and security paid by assessments on properties. Cultural Development Construction Fee Fund – This fund is used for collection of development fees used to pay for cultural improvements and activities. Impact Fees Fund – This fund is used to account for the specific revenue sources that are legally restricted to fund expenditures from developer impact fees. 14.a Packet Pg. 358 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Non-Major Governmental Funds - 128 - Capital Projects Funds (Continued) Street Construction Fund – This fund is used to account for right-of-way acquisition, construction, and improvements related to the City's street system. These projects are funded by various state and federal programs and matching City funds. Public Improvements Fund – This fund is used for maintenance and construction of improvements around the Indian Bingo Casino located on the reservation. Prop 1B Local Street Fund – This fund was established to account for monies received from the State through Prop 1B. This proposition provided $19 billion in bond funds for a variety of transportation projects, including $2 billion for cities and counties for maintenance and improvements of local transportation facilities. 14.a Packet Pg. 359 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Combining Balance Sheet Non-Major Governmental Funds June 30, 2020 - 129 - Low and Moderate Income Asset Housing Alternative RMRA Cable TV Seizure Fund Transportation Gas Tax ASSETS Cash and investments 1,008,006$ 2,897,906$ 3,344,466$ 838,431$ 4,908,324$ Receivables: Accounts 67,493 - 71,399 - - Interest 3,104 9,112 10,365 2,583 14,768 Due from other governments - - - 68,365 579,836 Property held for resale - - 16,119,540 - - Total assets 1,078,603$ 2,907,018$ 19,545,770$ 909,379$ 5,502,928$ LIABILITIES AND FUND BALANCES Liabilities: Accounts payable 945$ 661$ 10,765$ -$ 108,057$ Accrued payroll and related liabilities - - - - 415 Deposits payable - - - - - Retentions payable - - - 12,000 - Total liabilities 945 661 10,765 12,000 108,472 Fund Balances: Restricted Housing - - 19,535,005 - - Street improvements - - - - 5,394,456 Cable TV 1,077,658 - - - - Law enforcement - 2,906,357 - - - Transportation - - - 897,379 - Sewer - - - - - Debt service - - - - - Capital projects - - - - - Unassigned (deficit) - - - - - Total fund balances (deficit)1,077,658 2,906,357 19,535,005 897,379 5,394,456 Total liabilities and fund balances 1,078,603$ 2,907,018$ 19,545,770$ 909,379$ 5,502,928$ Special Revenue 14.a Packet Pg. 360 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Combining Balance Sheet Non-Major Governmental Funds June 30, 2020 - 130 - Debt Service Special Traffic Measure I Sewerline Verdemont Gas Tax Safety Fund Maintenance Loan ASSETS Cash and investments 1,796,454$ 2,506,792$ 6,014,773$ 9,680$ 106,154$ Receivables: Accounts - - - - - Interest 5,256 7,524 19,141 30 334 Due from other governments - 107,385 834,049 - - Property held for resale - - - - - Total assets 1,801,710$ 2,621,701$ 6,867,963$ 9,710$ 106,488$ LIABILITIES AND FUND BALANCES Liabilities: Accounts payable 413,955$ 307,662$ 305,324$ -$ -$ Accrued payroll and related liabilities 24,749 - - - - Deposits payable - - - - - Retentions payable 46,846 - - - - Total liabilities 485,550 307,662 305,324 - - Fund Balances: Restricted Housing - - - - - Street improvements 1,316,160 - 6,562,639 - - Cable TV - - - - - Law enforcement - - - - - Transportation - 2,314,039 - - - Sewer - - - 9,710 - Debt service - - - - 106,488 Capital projects - - - - - Unassigned (deficit) - - - - - Total fund balances (deficit)1,316,160 2,314,039 6,562,639 9,710 106,488 Total liabilities and fund balances 1,801,710$ 2,621,701$ 6,867,963$ 9,710$ 106,488$ Special Revenue 14.a Packet Pg. 361 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Combining Balance Sheet Non-Major Governmental Funds June 30, 2020 - 131 - Debt Service Assessment Park Storm District Construction Sewerline Drain #1015 Verdemont Fee Construction Construction ASSETS Cash and investments 22,358$ 250,664$ 148,728$ 124,276$ 9,527,475$ Receivables: Accounts - - - - - Interest 70 790 468 391 30,247 Due from other governments 5,496 - - - - Property held for resale - - - - - Total assets 27,924$ 251,454$ 149,196$ 124,667$ 9,557,722$ LIABILITIES AND FUND BALANCES Liabilities: Accounts payable -$ -$ -$ -$ 9,910$ Accrued payroll and related liabilities - - - - 1,868 Deposits payable - - - - - Retentions payable - - - - 24,818 Total liabilities - - - - 36,596 Fund Balances: Restricted Housing - - - - - Street improvements - - - - - Cable TV - - - - - Law enforcement - - - - - Transportation - - - - - Sewer - - - - - Debt service 27,924 - - - - Capital projects - 251,454 149,196 124,667 9,521,126 Unassigned (deficit) - - - - - Total fund balances (deficit)27,924 251,454 149,196 124,667 9,521,126 Total liabilities and fund balances 27,924$ 251,454$ 149,196$ 124,667$ 9,557,722$ Capital Projects 14.a Packet Pg. 362 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Combining Balance Sheet Non-Major Governmental Funds June 30, 2020 - 132 - Cultural Development Special Construction Impact Street Public Assessments Fee Fees Construction Improvements ASSETS Cash and investments 217,917$ 6,009,871$ 23,177,344$ 820,250$ 1,155,633$ Receivables: Accounts - - - - - Interest - 18,518 71,504 - 3,633 Due from other governments 13,989 - 546,265 - - Property held for resale - - - - - Total assets 231,906$ 6,028,389$ 23,795,113$ 820,250$ 1,159,266$ LIABILITIES AND FUND BALANCES Liabilities: Accounts payable 214,717$ 10,226$ 36,105$ -$ -$ Accrued payroll and related liabilities - 363 3,927 - - Deposits payable 34,569 - - - - Retentions payable - - 10,963 - - Total liabilities 249,286 10,589 50,995 - - Fund Balances: Restricted Housing - - - - - Street improvements - - - - - Cable TV - - - - - Law enforcement - - - - - Transportation - - - - - Sewer - - - - - Debt service - - - - - Capital projects - 6,017,800 23,744,118 820,250 1,159,266 Unassigned (deficit) (17,380) - - - - Total fund balances (deficit)(17,380) 6,017,800 23,744,118 820,250 1,159,266 Total liabilities and fund balances 231,906$ 6,028,389$ 23,795,113$ 820,250$ 1,159,266$ Capital Projects 14.a Packet Pg. 363 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Combining Balance Sheet Non-Major Governmental Funds June 30, 2020 - 133 - Capital Projects Total Prop 1B Other Local Governmental Street Funds ASSETS Cash and investments 65,483$ 64,950,985$ Receivables: Accounts - 138,892 Interest 206 198,044 Due from other governments - 2,155,385 Property held for resale - 16,119,540 Total assets 65,689$ 83,562,846$ LIABILITIES AND FUND BALANCES Liabilities: Accounts payable -$ 1,418,327$ Accrued payroll and related liabilities - 31,322 Deposits payable - 34,569 Retentions payable - 94,627 Total liabilities - 1,578,845 Fund Balances: Restricted Housing - 19,535,005 Street improvements - 13,273,255 Cable TV - 1,077,658 Law enforcement - 2,906,357 Transportation - 3,211,418 Sewer - 9,710 Debt service - 134,412 Capital projects 65,689 41,853,566 Unassigned (deficit) - (17,380) Total fund balances (deficit)65,689 81,984,001 Total liabilities and fund balances 65,689$ 83,562,846$ (Concluded) 14.a Packet Pg. 364 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements 14.a Packet Pg. 365 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Non-Major Governmental Funds For the Fiscal Year Ended June 30, 2020 - 134 - Low and Moderate Income Asset Housing Alternative RMRA Cable TV Seizure Fund Transportation Gas Tax REVENUES: Taxes 266,487$ -$ -$ -$ -$ Licenses and Permits - - 750 - - Impact fees - - - - - Fines and forfeitures - - - - - Use of money and property 20,810 67,437 491,444 18,352 105,498 Intergovernmental 5,510 159,008 359,740 243,368 4,043,554 Charges for services - - - - - Other revenues - - 78,377 - - Total revenues 292,807 226,445 930,311 261,720 4,149,052 EXPENDITURES: Current: General government 140,573 - - 7,187 - Public safety - 815,904 - - - Streets - - - 240,000 3,816,696 Culture and recreation - - - - - Community development - - 191,197 - - Community service - - - - - Total expenditures 140,573 815,904 191,197 247,187 3,816,696 REVENUES OVER (UNDER) EXPENDITURES 152,234 (589,459) 739,114 14,533 332,356 OTHER FINANCING SOURCES (USES): Transfers in - - - - - Transfers out - - - - - Total other financing sources (uses)- - - - - CHANGE IN FUND BALANCES 152,234 (589,459) 739,114 14,533 332,356 FUND BALANCES (DEFICIT): Beginning of year 925,424 3,495,816 18,795,891 882,846 5,062,100 End of year 1,077,658$ 2,906,357$ 19,535,005$ 897,379$ 5,394,456$ Special Revenue 14.a Packet Pg. 366 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Non-Major Governmental Funds For the Fiscal Year Ended June 30, 2020 - 135 - Debt Service Special Traffic Measure I Sewerline Verdemont Gas Tax Safety Fund Maintenance Loan REVENUES: Taxes -$ -$ 4,054,661$ -$ -$ Licenses and Permits - - - - 1,975 Impact fees - - - - - Fines and forfeitures - 1,018,739 - - - Use of money and property 40,451 47,712 167,472 209 2,119 Intergovernmental 4,730,169 17,137 488,622 - - Charges for services - - - - 29,365 Other revenues - - - - - Total revenues 4,770,620 1,083,588 4,710,755 209 33,459 EXPENDITURES: Current: General government - - - - - Public safety - 68,853 - - - Streets 5,241,275 364,549 8,491,431 - - Culture and recreation - - - - - Community development - - - - - Community service - - - - Total expenditures 5,241,275 433,402 8,491,431 - - REVENUES OVER (UNDER) EXPENDITURES (470,655) 650,186 (3,780,676) 209 33,459 OTHER FINANCING SOURCES (USES): Transfers in - - - - - Transfers out - - - - - Total other financing sources (uses)- - - - - CHANGES IN FUND BALANCES (470,655) 650,186 (3,780,676) 209 33,459 FUND BALANCES (DEFICIT): Beginning of year 1,786,815 1,663,853 10,343,315 9,501 73,029 End of year 1,316,160$ 2,314,039$ 6,562,639$ 9,710$ 106,488$ Special Revenue 14.a Packet Pg. 367 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Non-Major Governmental Funds For the Fiscal Year Ended June 30, 2020 - 136 - Debt Service Assessment Park Storm District Construction Sewerline Drain #1015 Verdemont Fee Construction Construction REVENUES: Taxes 5,495$ -$ -$ -$ -$ Licenses and Permits - - - - - Impact fees - - - - - Fines and forfeitures - - - - - Use of money and property 485 5,550 3,224 2,693 205,210 Intergovernmental - - - - - Charges for services - - - - 1,676,426 Other revenues - - - - - Total revenues 5,980 5,550 3,224 2,693 1,881,636 EXPENDITURES: Current: General government - - - - - Public safety - - - - - Streets - - - - 1,199,663 Culture and recreation - 15,368 - - - Community development - - - - - Community service - - - - - Total expenditures - 15,368 - - 1,199,663 REVENUES OVER (UNDER) EXPENDITURES 5,980 (9,818) 3,224 2,693 681,973 OTHER FINANCING SOURCES (USES): Transfers in - - - - - Transfers out - - - - - Total other financing sources (uses)- - - - - CHANGES IN FUND BALANCES 5,980 (9,818) 3,224 2,693 681,973 FUND BALANCES (DEFICIT): Beginning of year 21,944 261,272 145,972 121,974 8,839,153 End of year 27,924$ 251,454$ 149,196$ 124,667$ 9,521,126$ Capital Projects 14.a Packet Pg. 368 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Non-Major Governmental Funds For the Fiscal Year Ended June 30, 2020 - 137 - Cultural Development Special Construction Impact Street Public Assessments Fee Fees Construction Improvements REVENUES: Taxes 1,091,267$ -$ -$ -$ -$ Licenses and Permits - 1,343,175 - - - Impact fees - - 4,188,573 - - Fines and forfeitures - - - - - Use of money and property - 121,198 477,674 - 25,049 Intergovernmental - - 930,635 - - Charges for services - - - - - Other revenues - - 34,364 - - Total revenues 1,091,267 1,464,373 5,631,246 - 25,049 EXPENDITURES: Current: General government - 1,693 - - - Public safety - 40,960 - - - Streets 1,191,411 90,519 2,101,624 - - Culture and recreation - 75,081 431,865 - - Community development - - - - - Community service - 115,047 - - - Total expenditures 1,191,411 323,300 2,533,489 - - REVENUES OVER (UNDER) EXPENDITURES (100,144) 1,141,073 3,097,757 - 25,049 OTHER FINANCING SOURCES (USES): Transfers in 118,755 - 910,561 - - Transfers out - - - (910,561) - Total other financing sources (uses)118,755 - 910,561 (910,561) - CHANGES IN FUND BALANCES 18,611 1,141,073 4,008,318 (910,561) 25,049 FUND BALANCES (DEFICIT): Beginning of year (35,991) 4,876,727 19,735,800 1,730,811 1,134,217 End of year (17,380)$ 6,017,800$ 23,744,118$ 820,250$ 1,159,266$ Capital Projects 14.a Packet Pg. 369 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Non-Major Governmental Funds For the Fiscal Year Ended June 30, 2020 - 138 - Capital Projects Total Prop 1B Other Local Governmental Street Funds REVENUES: Taxes -$ 5,417,910$ Licenses and Permits - 1,345,900 Impact fees - 4,188,573 Fines and forfeitures - 1,018,739 Use of money and property 1,419 1,804,006 Intergovernmental - 10,977,743 Charges for services - 1,705,791 Other revenues - 112,741 Total revenues 1,419 26,571,403 EXPENDITURES: Current: General government - 149,453 Public safety - 925,717 Streets - 22,737,168 Culture and recreation - 522,314 Community development - 191,197 Community service - 115,047 Total expenditures - 24,640,896 REVENUES OVER (UNDER) EXPENDITURES 1,419 1,930,507 OTHER FINANCING SOURCES (USES): Transfers in - 1,029,316 Transfers out - (910,561) Total other financing sources (uses)- 118,755 CHANGES IN FUND BALANCES 1,419 2,049,262 FUND BALANCES (DEFICIT): Beginning of year 64,270 79,934,739 End of year 65,689$ 81,984,001$ (Concluded) 14.a Packet Pg. 370 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual Cable TV Special Revenue Fund For the Fiscal Year Ended June 30, 2020 - 139 - Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES: Taxes 270,000$ 270,000$ 266,487$ (3,513)$ Use of money and property 10,000 10,000 20,810 10,810 Intergovernmental 5,000 5,000 5,510 510 Total revenues 285,000 285,000 292,807 7,807 EXPENDITURES: Current: General government City manager Other 270,500 270,500 140,573 129,927 Total expenditures 270,500 270,500 140,573 129,927 CHANGE IN FUND BALANCE 14,500$ 14,500$ 152,234 137,734$ FUND BALANCE: Beginning of year 925,424 End of year 1,077,658$ Budgeted Amounts 14.a Packet Pg. 371 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual Asset Seizure Special Revenue Fund For the Fiscal Year Ended June 30, 2020 - 140 - Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES: Use of money and property 53,000$ 53,000$ 67,437$ 14,437$ Intergovernmental - - 159,008 159,008 Total revenues 53,000 53,000 226,445 173,445 EXPENDITURES: Current: Public safety Police Personnel salaries and benefits 487,000 487,000 487,000 - Other 698,000 698,000 328,904 369,096 Total expenditures 1,185,000 1,185,000 815,904 369,096 CHANGE IN FUND BALANCE (1,132,000)$ (1,132,000)$ (589,459) 542,541$ FUND BALANCE: Beginning of year 3,495,816 End of year 2,906,357$ Budgeted Amounts 14.a Packet Pg. 372 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual Low and Moderate Income Housing Special Revenue Fund For the Fiscal Year Ended June 30, 2020 - 141 - Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES: Licenses and Permits -$ -$ 750$ 750$ Use of money and property - - 491,444 491,444 Intergovernmental 50,000 50,000 359,740 309,740 Other revenues - - 78,377 78,377 Total revenues 50,000 50,000 930,311 880,311 EXPENDITURES: Current: Community development Personnel salaries and benefits 20,000 20,000 - 20,000 Other 30,000 237,030 191,197 45,833 Total expenditures 50,000 257,030 191,197 65,833 CHANGE IN FUND BALANCE -$ (207,030)$ 739,114 946,144$ FUND BALANCE: Beginning of year 18,795,891 End of year 19,535,005$ Budgeted Amounts 14.a Packet Pg. 373 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual Alternative Transportation Special Revenue Fund For the Fiscal Year Ended June 30, 2020 - 142 - Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES: Use of money and property 15,000$ 15,000$ 18,352$ 3,352$ Intergovernmental 250,000 250,000 243,368 (6,632) Total revenues 265,000 265,000 261,720 (3,280) EXPENDITURES: Current: General government City manager Other 10,500 10,500 7,187 3,313 Streets Public works Other - 939,046 240,000 699,046 Total expenditures 10,500 949,546 247,187 702,359 CHANGE IN FUND BALANCE 254,500$ (684,546)$ 14,533 699,079$ FUND BALANCE: Beginning of year 882,846 End of year 897,379$ Budgeted Amounts 14.a Packet Pg. 374 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual RMRA Gas Tax Special Revenue Fund For the Fiscal Year Ended June 30, 2020 - 143 - Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES: Use of money and property -$ -$ 105,498$ 105,498$ Intergovernmental 3,883,614 3,883,614 4,043,554 159,940 Total revenues 3,883,614 3,883,614 4,149,052 265,438 EXPENDITURES: Current: Streets Public works Personnel salaries and benefits - - 75,524 (75,524) Other 3,700,000 7,880,506 3,741,172 4,139,334 Total expenditures 3,700,000 7,880,506 3,816,696 4,063,810 REVENUES OVER (UNDER) EXPENDITURES 183,614 (3,996,892) 332,356 4,329,248 CHANGE IN FUND BALANCE 183,614$ (3,996,892)$ 332,356 4,329,248$ FUND BALANCE: Beginning of year 5,062,100 End of year 5,394,456$ Budgeted Amounts 14.a Packet Pg. 375 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual Special Gas Tax Special Revenue Fund For the Fiscal Year Ended June 30, 2020 - 144 - Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES: Use of money and property -$ -$ 40,451$ 40,451$ Intergovernmental 5,506,908 5,506,908 4,730,169 (776,739) Total revenues 5,506,908 5,506,908 4,770,620 (736,288) EXPENDITURES: Current: Streets Public works Personnel salaries and benefits 977,300 977,300 892,027 85,273 Other 4,388,600 6,352,048 4,349,248 2,002,800 Total expenditures 5,365,900 7,329,348 5,241,275 2,088,073 REVENUES OVER (UNDER) EXPENDITURES 141,008 (1,822,440) (470,655) (2,824,361) CHANGE IN FUND BALANCE 141,008$ (1,822,440)$ (470,655) 1,351,785$ FUND BALANCE: Beginning of year 1,786,815 End of year 1,316,160$ Budgeted Amounts 14.a Packet Pg. 376 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual Traffic Safety Special Revenue Fund For the Fiscal Year Ended June 30, 2020 - 145 - Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES: Fines and forfeitures 320,000$ 320,000$ 1,018,739$ 698,739$ Use of money and property - - 47,712 47,712 Intergovernmental 10,000 10,000 17,137 7,137 Total revenues 330,000 330,000 1,083,588 753,588 EXPENDITURES: Current: Public safety Police Other 610,000 610,000 68,853 541,147 Streets Public works Other - 364,550 364,549 1 Total expenditures 610,000 974,550 433,402 541,148 CHANGE IN FUND BALANCE (280,000)$ (644,550)$ 650,186 1,294,736$ FUND BALANCE: Beginning of year 1,663,853 End of year 2,314,039$ Budgeted Amounts 14.a Packet Pg. 377 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual Measure I Special Revenue Fund For the Fiscal Year Ended June 30, 2020 - 146 - Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES: Taxes 3,776,585$ 3,776,585$ 4,054,661$ 278,076$ Use of money and property - - 167,472 167,472 Intergovernmental - - 488,622 488,622 Total revenues 3,776,585 3,776,585 4,710,755 934,170 EXPENDITURES: Current: Streets Public works Personnel salaries and benefits - - 48,478 (48,478) Other 3,439,000 12,700,677 8,442,953 4,257,724 Total expenditures 3,439,000 12,700,677 8,491,431 4,209,246 CHANGE IN FUND BALANCE 337,585$ (8,924,092)$ (3,780,676) 5,143,416$ FUND BALANCE: Beginning of year 10,343,315 End of year 6,562,639$ Budgeted Amounts 14.a Packet Pg. 378 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual Verdemont Capital Projects Fund For the Fiscal Year Ended June 30, 2020 - 147 - Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES: Use of money and property -$ -$ 5,550$ 5,550$ Total revenues - - 5,550 5,550 EXPENDITURES: Current: Culture and recreation Park, recreation, and community services Other - 183,574 15,368 168,206 Total expenditures - 183,574 15,368 168,206 CHANGE IN FUND BALANCE -$ (183,574)$ (9,818) 173,756$ FUND BALANCE: Beginning of year 261,272 End of year 251,454$ Budgeted Amounts 14.a Packet Pg. 379 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual Storm Drain Construction Capital Projects Fund For the Fiscal Year Ended June 30, 2020 - 148 - Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES: Use of money and property -$ -$ 205,210$ 205,210$ Charges for services 1,500,000 1,500,000 1,676,426 176,426 Total revenues 1,500,000 1,500,000 1,881,636 381,636 EXPENDITURES: Current: Streets Public works Personnel salaries and benefits - - 44,984 (44,984) Other 1,600,000 6,847,250 1,154,679 5,692,571 Total expenditures 1,600,000 6,847,250 1,199,663 5,647,587 CHANGE IN FUND BALANCE (100,000)$ (5,347,250)$ 681,973 6,029,223$ FUND BALANCE: Beginning of year 8,839,153 End of year 9,521,126$ Budgeted Amounts 14.a Packet Pg. 380 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual Special Assessments Capital Projects Fund For the Fiscal Year Ended June 30, 2020 - 149 - Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES: Taxes 143,300$ 1,349,122$ 1,091,267$ (257,855)$ Total revenues 143,300 1,349,122 1,091,267 (257,855) EXPENDITURES: Current: Streets Public works Other 143,300 1,467,877 1,191,411 276,466 Total expenditures 143,300 1,467,877 1,191,411 276,466 REVENUES OVER (UNDER) EXPENDITURES - (118,755) (100,144) (534,321) OTHER FINANCING SOURCES (USES): Transfers in - 118,755 118,755 - Total other financing sources (uses)- 118,755 118,755 - CHANGE IN FUND BALANCE -$ -$ 18,611 18,611$ FUND BALANCE (DEFICIT): Beginning of year (35,991) End of year (17,380)$ Budgeted Amounts 14.a Packet Pg. 381 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual Cultural Development Construction Fee Capital Projects Fund For the Fiscal Year Ended June 30, 2020 - 150 - Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES: Licenses and Permits 600,000$ 600,000$ 1,343,175$ 743,175$ Use of money and property - - 121,198 121,198 Total revenues 600,000 600,000 1,464,373 864,373 EXPENDITURES: Current: General government Mayor Other 20,000 20,000 1,693 18,307 Nondepartmental Other 60,000 60,000 - 60,000 Public safety Police Personnel salaries and benefits - 42,325 40,960 1,365 Streets Public works Personnel salaries and benefits - 3,000 519 2,481 Other 90,000 90,000 90,000 - Culture and recreation Park, recreation, and community services Personnel salaries and benefits 15,000 15,000 9,336 5,664 Other 76,800 160,108 65,745 94,363 Community service Other 139,600 139,600 115,047 24,553 Total expenditures 401,400 530,033 323,300 206,733 CHANGE IN FUND BALANCE 198,600$ 69,967$ 1,141,073 1,071,106$ FUND BALANCE: Beginning of year 4,876,727 End of year 6,017,800$ Budgeted Amounts 14.a Packet Pg. 382 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual Impact Fees Capital Projects Fund For the Fiscal Year Ended June 30, 2020 - 151 - Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES: Impact fees 460,000$ 460,000$ 4,188,573$ 3,728,573$ Use of money and property - - 477,674 477,674 Intergovernmental 1,500,000 1,500,000 930,635 (569,365) Other revenues - - 34,364 34,364 Total revenues 1,960,000 1,960,000 5,631,246 3,671,246 EXPENDITURES: Current: Streets Public works Personnel salaries and benefits - - 19,100 (19,100) Other 10,865,000 13,875,179 2,082,524 11,792,655 Culture and recreation Personnel salaries and benefits - - 9,932 (9,932) Other 140,000 771,266 421,933 349,333 Total expenditures 11,005,000 14,646,445 2,533,489 12,112,956 REVENUES OVER (UNDER) EXPENDITURES (9,045,000) (12,686,445) 3,097,757 (8,441,710) OTHER FINANCING SOURCES (USES): Transfers in - - 910,561 910,561 Total other financing sources (uses)- - 910,561 910,561 CHANGE IN FUND BALANCE (9,045,000)$ (12,686,445)$ 4,008,318 16,694,763$ FUND BALANCE: Beginning of year 19,735,800 End of year 23,744,118$ Budgeted Amounts 14.a Packet Pg. 383 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Internal Service Funds - 152 - Internal Service Funds Internal Service Funds are used to finance and account for special activities and services performed by a designated City department for other departments on a cost reimbursement basis. The City maintains the following Internal Service Funds for the purposes indicated: Workers’ Compensation Fund – This fund is for administration of the City’s self-insurance for workers’ compensation. Liability Insurance Fund – This fund is for the administration of the City’s liability claims, combined self-insurance and umbrella coverage for liability. Motorpool Fund – This fund is used to account for the maintenance and operating costs for the City’s fleet of vehicles. Information Systems Fund – This fund is used to account for the acquisition and maintenance of the City’s computer and emergency communications systems. 14.a Packet Pg. 384 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Combining Statement of Net Position Internal Service Funds June 30, 2020 - 153 - Workers'Liability Information Compensation Insurance Motorpool Systems Total ASSETS Current assets: Cash and investments -$ 6,579,640$ -$ 354,762$ 6,934,402$ Accounts receivable 4,542 - 171,096 - 175,638 Interest receivable - 13,970 - 609 14,579 Due from other funds - 2,826,926 - - 2,826,926 Inventories - - 182,352 - 182,352 Prepaid items - 47,512 2,572 - 50,084 Total current assets 4,542 9,468,048 356,020 355,371 10,183,981 Noncurrent assets: Non-depreciable capital assets - - 2,226,381 - 2,226,381 Depreciable capital assets, net - - 112,923 569,493 682,416 Total capital assets, net - - 2,339,304 569,493 2,908,797 Total noncurrent assets - - 2,339,304 569,493 2,908,797 Total assets 4,542 9,468,048 2,695,324 924,864 13,092,778 DEFERRED OUTFLOWS OF RESOURCES Pension-related deferred outflows of resources 122,216 128,206 512,825 881,868 1,645,115 Total deferred outflows of resources 122,216 128,206 512,825 881,868 1,645,115 LIABILITIES Current liabilities: Accounts payable and accrued liabilities 114,810 81,044 227,533 153,834 577,221 Payroll and related liabilities 8,212 8,470 32,856 55,665 105,203 Due to other funds 1,186,633 - 1,640,293 - 2,826,926 Compensated absences 2,134 2,480 22,823 42,351 69,788 Claims payable 4,587,457 520,164 - - 5,107,621 Total current liabilities 5,899,246 612,158 1,923,505 251,850 8,686,759 Noncurrent liabilities: Advances from other fund - - 855,000 - 855,000 Aggregate net pension liability 1,097,641 1,151,447 4,605,789 7,920,235 14,775,112 Compensated absences 4,980 5,786 53,253 98,820 162,839 Claims payable 17,332,916 9,343,074 - - 26,675,990 Total noncurrent liabilities 18,435,537 10,500,307 5,514,042 8,019,055 42,468,941 Total liabilities 24,334,783 11,112,465 7,437,547 8,270,905 51,155,700 DEFERRED INFLOWS OF RESOURCES Pension-related deferred inflows of resources 18,262 19,157 76,627 131,769 245,815 Total deferred inflows of resources 18,262 19,157 76,627 131,769 245,815 NET POSITION (DEFICIT) Net investment in capital assets - - 2,339,304 569,493 2,908,797 Unrestricted (deficit)(24,226,287) (1,535,368) (6,645,329) (7,165,435) (39,572,419) Total net position (24,226,287)$ (1,535,368)$ (4,306,025)$ (6,595,942)$ (36,663,622)$ 14.a Packet Pg. 385 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Combining Statement of Revenues, Expenses, and Changes in Net Position Internal Service Funds For the Fiscal Year Ended June 30, 2020 - 154 - Workers' Liability Information Compensation Insurance Motorpool Systems Total OPERATING REVENUES: Charges for services 5,613,343$ 7,546,547$ 2,777,427$ 4,493,328$ 20,430,645$ Other 3,641 175,673 - - 179,314 Total operating revenues 5,616,984 7,722,220 2,777,427 4,493,328 20,609,959 OPERATING EXPENSES: Cost of sales and services 1,813,795 2,669,286 3,617,617 3,281,787 11,382,485 Claims expense 2,533,549 5,151,204 - - 7,684,753 Amortization - - - 594,633 594,633 Depreciation - - 36,130 63,052 99,182 Total operating expenses 4,347,344 7,820,490 3,653,747 3,939,472 19,761,053 Operating income (loss)1,269,640 (98,270) (876,320) 553,856 848,906 NONOPERATING REVENUES (EXPENSES): Investment income - 98,270 8,553 1,875 108,698 Interest expense and fiscal charges - - (34,200) (6,882) (41,082) Miscellaneous income - - 46,958 388,765 435,723 Total nonoperating revenues (expenses)- 98,270 21,311 383,758 503,339 Changes in net position 1,269,640 - (855,009) 937,614 1,352,245 NET POSITION (DEFICIT): Beginning of year (25,495,927) (1,535,368) (3,451,016) (7,533,556) (38,015,867) End of year (24,226,287)$ (1,535,368)$ (4,306,025)$ (6,595,942)$ (36,663,622)$ 14.a Packet Pg. 386 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Combining Statement of Cash Flows Internal Service Funds For the Fiscal Year Ended June 30, 2020 - 155 - Workers' Liability Information Compensation Insurance Motorpool Systems Total CASH FLOWS FROM OPERATING ACTIVITIES: Cash received from user departments 4,727,879$ 7,254,502$ 4,239,649$ 4,272,970$ 20,495,000$ Nonoperating miscellaneous revenues - - 46,958 388,765 435,723 Cash payments to suppliers for goods and services (860,510) (3,448,032) (1,821,631) (1,865,414) (7,995,587) Cash payments to employees for services (936,718) (372,743) (1,067,947) (1,798,190) (4,175,598) Cash payments for claims and insurance (2,934,292) (1,297,586) - - (4,231,878) Cash received from (paid for) other activities 3,641 175,673 - - 179,314 Net cash provided by operating activities - 2,311,814 1,397,029 998,131 4,706,974 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Acquisition of capital assets - - (2,226,382) (10,870) (2,237,252) Principal payments on long term debt - - - (626,883) (626,883) Interest paid - - - (6,882) (6,882) Net cash (used in) capital and related financing activities - - (2,226,382) (644,635) (2,871,017) CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Interfund borrowing - - (889,200) - (889,200) Net cash (used in) noncapital financing activities - - (889,200) - (889,200) CASH FLOWS FROM INVESTING ACTIVITIES: Investment income - 84,300 8,553 1,266 94,119 Net cash provided by investing activities - 84,300 8,553 1,266 94,119 Net change in cash and cash equivalents - 2,396,114 (1,710,000) 354,762 1,040,876 CASH AND CASH EQUIVALENTS: Beginning of year - 4,183,526 1,710,000 - 5,893,526 End of year -$ 6,579,640$ -$ 354,762$ 6,934,402$ 14.a Packet Pg. 387 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Combining Statement of Cash Flows (Continued) Internal Service Funds For the Fiscal Year Ended June 30, 2020 - 156 - Workers' Liability Information Compensation Insurance Motorpool Systems Total RECONCILIATION OF OPERATING INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES: Operating income (loss)1,269,640$ (98,270)$ (876,320)$ 553,856$ 848,906$ Nonoperating miscellaneous revenues - - 46,958 388,765 435,723 Adjustments to reconcile operating income (loss) to net cash provided by operating activities: Depreciation and amortization - - 36,130 657,685 693,815 Changes in operating assets and liabilities: Accounts receivable, net 104,579 358,205 (46,096) - 416,688 Inventories - - 7,638 - 7,638 Prepaid items - (47,512) (88) - (47,600) Due from other funds - (650,250) - - (650,250) Pension-related deferred outflows of resources (33,830) (36,098) (155,559) (127,329) (352,816) Accounts payable and accrued liabilities (88,227) (1,220,818) 110,947 30,485 (1,167,613) Payroll and related liabilities 367 384 1,522 (33,003) (30,730) Due to other funds (990,043) - 1,508,318 (220,358) 297,917 Aggregate net pension liability 137,400 150,775 724,396 (277,187) 735,384 Compensated absences (4,250) (3,668) 15,729 5,748 13,559 Claims payable (400,743) 3,853,618 - - 3,452,875 Pension-related deferred inflows of resources 5,107 5,448 23,454 19,469 53,478 Total adjustments (1,269,640) 2,410,084 2,226,391 55,510 3,422,345 Net cash provided by operating activities -$ 2,311,814$ 1,397,029$ 998,131$ 4,706,974$ 14.a Packet Pg. 388 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Agency Funds - 157 - Agency Funds The Agency Funds are used to account for assets held by the City in a trustee capacity for individuals, private organizations, other governments, and/or other funds. The City maintains the following Agency Funds for the purposes indicated: Assessment District #977A – This fund is used to account for the collection of assessments from property owners and for the remittance of such assessments to bondholders as required by the Improvement Bond Act of 1915 and related California State statutes for this district. Assessment District #977B – This fund is used to account for the collection of assessments from property owners and for the remittance of such assessments to bondholders as required by the Improvement Bond Act of 1915 and related California State statutes for this district. Assessment District #1003 – This fund is used to account for the collection of assessments from property owners and for the remittance of such assessments to bondholders as required by the Improvement Bond Act of 1915 and related California State statutes for this district. Special Deposits – This fund accounts for all deposits made by developers, other government agencies or others for disposition under the terms for which the deposits were made. Cemetery Perpetual Care – This fund accounts for all money collected for the perpetual maintenance of the City owned and operated Cemetery. 14.a Packet Pg. 389 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Combining Statement of Fiduciary Assets and Liabilities Agency Funds June 30, 2020 - 158 - Assessment Assessment Assessment District District District Special #977A #977B #1003 Deposits ASSETS Cash and investments 63,124$ 26,751$ 57,758$ 7,340,599$ Accounts receivable - - - 42,250 Total assets 63,124$ 26,751$ 57,758$ 7,382,849$ LIABILITIES Accounts payable -$ -$ -$ 276,866$ Deposits payable - - - 7,105,983 Due to bondholders 63,124 26,751 57,758 - Total liabilities 63,124$ 26,751$ 57,758$ 7,382,849$ 14.a Packet Pg. 390 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Combining Statement of Fiduciary Assets and Liabilities (Continued) Agency Funds June 30, 2020 - 159 - Cemetery Perpetual Care Total ASSETS Cash and investments 659,796$ 8,148,028$ Accounts receivable - 42,250 Total assets 659,796$ 8,190,278$ LIABILITIES Accounts payable -$ 276,866$ Deposits payable 659,796 7,765,779 Due to bondholders - 147,633 Total liabilities 659,796$ 8,190,278$ 14.a Packet Pg. 391 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Combining Statement of Changes in Fiduciary Assets and Liabilities Agency Funds For the Fiscal Year Ended June 30, 2020 - 160 - Balance Balance July 1, 2019 Additions Deletions June 30, 2020 Assessment District #977A Assets: Cash and investments 63,124$ -$ -$ 63,124$ Total assets 63,124$ -$ -$ 63,124$ Liabilities: Due to bondholders 63,124$ -$ -$ 63,124$ Total liabilities 63,124$ -$ -$ 63,124$ Assessment District #977B Assets: Cash and investments 26,751$ -$ -$ 26,751$ Total assets 26,751$ -$ -$ 26,751$ Liabilities: Due to bondholders 26,751$ -$ -$ 26,751$ Total liabilities 26,751$ -$ -$ 26,751$ Assessment District #1003 Assets: Cash and investments 57,758$ -$ -$ 57,758$ Total assets 57,758$ -$ -$ 57,758$ Liabilities: Due to bondholders 57,758$ -$ -$ 57,758$ Total liabilities 57,758$ -$ -$ 57,758$ Special Deposits Assets: Cash and investments 5,861,436$ 20,710,580$ (19,231,417)$ 7,340,599$ Accounts receivable 22,784 30,173 (10,707) 42,250 Interest receivable 446,959 - (446,959) - Total assets 6,331,179$ 20,740,753$ (19,689,083)$ 7,382,849$ Liabilities: Accounts payable 351,896$ 1,181,004$ (1,256,034)$ 276,866$ Deposits payable 5,979,283 20,881,888 (19,755,188) 7,105,983 Total liabilities 6,331,179$ 22,062,892$ (21,011,222)$ 7,382,849$ 14.a Packet Pg. 392 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Combining Statement of Changes in Fiduciary Assets and Liabilities (Continued) Agency Funds For the Fiscal Year Ended June 30, 2020 - 161 - Balance Balance July 1, 2019 Additions Deletions June 30, 2020 Cemetery Perpetual Care Assets: Cash and investments 659,796$ -$ -$ 659,796$ Total assets 659,796$ -$ -$ 659,796$ Liabilities: Deposits payable 659,796$ -$ -$ 659,796$ Total liabilities 659,796$ -$ -$ 659,796$ Total All Agency Funds Assets: Cash and investments 6,668,865$ 20,710,580$ (19,231,417)$ 8,148,028$ Accounts receivable 22,784 30,173 (10,707) 42,250 Interest receivable 446,959 - (446,959) - Total assets 7,138,608$ 20,740,753$ (19,689,083)$ 8,190,278$ Liabilities: Accounts payable 351,896$ 1,181,004$ (1,256,034)$ 276,866$ Deposits payable 6,639,079 20,881,888 (19,755,188) 7,765,779 Due to bondholders 147,633 - - 147,633 Total liabilities 7,138,608$ 22,062,892$ (21,011,222)$ 8,190,278$ 14.a Packet Pg. 393 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements 14.a Packet Pg. 394 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements STATISTICAL SECTION 14.a Packet Pg. 395 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements 14.a Packet Pg. 396 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements - 162 - Net Position by Component 163 Changes in Net Position 165 Fund Balances of Governmental Funds 169 Changes in Fund Balances of Governmental Funds 171 Tax Revenues by Source - Governmental Funds 173 Assessed Value and Estimated Actual Value of Taxable Property 174 Taxable Sales by Category 175 Principal Sales Tax Remitters 177 Direct and Overlapping Property Tax Rates 178 Principal Property Taxpayers 179 Property Tax Levies and Collections 180 Top 10 Customers - Water, Sewer Treatment, Sewer Collection 181 Connections and Revenues by User Type - Water 182 Water Rate History - Minimum Monthly Charge 183 Connections and Revenues by User Type - Sewer Treatment 184 Sewer Treatment Rate History 185 Connections and Revenues by User Type - Sewer Collection 186 Sewer Collection Rate History 187 Ratio of Outstanding Debt by Type 188 Ratio of General Bonded Debt Outstanding 190 Schedule of Direct and Overlapping Bonded Debt 191 Legal Debt Margin 192 Debt Service Coverage 194 Demographic and Economic Statistics 195 Principal Employers 196 Budgeted Full-Time and Part-Time Positions by Function 197 Capital Asset Statistics 198 Operating Indicators by Function 199 Sources: Unless otherwise noted, the information in these schedules is derived from the Comprehensive Annual Financial Reports for the relevant year. Demographic and Economic Information - These schedules offer demographic and economic indicators to help the reader understand the environment within which the City's financial activities take place and to help make comparisons over time and with other governments. Operating Information - These schedules contain information about the City's operations and resources to help the reader understand how the City's financial information relates to the services the City provides and the activities it performs. STATISTICAL SECTION This section of the City of San Bernardino's Comprehensive Annual Financial Report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City's overall financial health. Financial Trends Schedules - These schedules contain trend information to help the reader understand how the City's financial performance and well-being have changed over time. Revenue Capacity Schedules - These schedules contain information to help the reader assess the factors affecting the City's ability to generate its property and sales taxes, as well as proprietary revenues for the City's Water, Sewer Treatment, and Sewer Collection services. Debt Capacity Schedules - These schedules present information to help the reader assess the affordability of the City's current levels of outstanding debt and the City's ability to issue additional debt in the future. 14.a Packet Pg. 397 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Net Position by Component Last Ten Fiscal Years (Accrual Basis of Accounting) ______________________________________________________________________________ - 163 - 2011 2012 2013 2014 2015 Governmental activities: Net investment in capital assets 425,705,511$ 394,655,658$ 377,287,488$ 366,632,191$ 357,760,150$ Restricted 197,685,282 112,634,171 109,448,652 117,670,005 100,668,315 Unrestricted (260,861,339) (126,831,648) (133,128,461) (74,661,663) (384,440,896) Total governmental activities net position 362,529,454$ 380,458,181$ 353,607,679$ 409,640,533$ 73,987,569$ Business-type activities: Net investment in capital assets 204,367,733$ 212,255,999$ 191,109,595$ 206,293,601$ 223,104,368$ Restricted 8,276,462 7,389,246 7,799,773 61,537,004 60,084,163 Unrestricted 41,372,198 40,727,533 63,679,374 10,563,420 (47,561,359) Total primary government net position 254,016,393$ 260,372,778$ 262,588,742$ 278,394,025$ 235,627,172$ Primary government: Net investment in capital assets 630,073,244$ 606,911,657$ 568,397,083$ 572,925,792$ 580,864,518$ Restricted 205,961,744 120,023,417 117,248,425 179,207,009 160,752,478 Unrestricted (219,489,141) (86,104,115) (69,449,087) (64,098,243) (432,002,255) Total primary government net position 616,545,847$ 640,830,959$ 616,196,421$ 688,034,558$ 309,614,741$ Fiscal Year 14.a Packet Pg. 398 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Net Position by Component (Continued) Last Ten Fiscal Years (Accrual Basis of Accounting) ______________________________________________________________________________ - 164 - 2016 2017 2018 2019 2020 Governmental activities: Net investment in capital assets 346,538,460$ 316,218,375$ 291,168,979$ 286,878,015$ 282,634,784$ Restricted 126,717,096 106,923,136 114,629,131 98,129,481 101,171,196 Unrestricted (388,600,709) (257,124,872) (306,072,272) (306,956,031) (334,495,248) Total governmental activities net position 84,654,847$ 166,016,639$ 99,725,838$ 78,051,465$ 49,310,732$ Business-type activities: Net investment in capital assets 235,670,073$ 250,399,481$ 248,654,078$ 259,671,498$ 255,270,720$ Restricted 58,331,021 7,944,758 8,363,037 33,999,584 - Unrestricted (39,100,089) 29,139,574 26,485,780 2,566,757 53,071,115 Total business-type activities net position 254,901,005$ 287,483,813$ 283,502,895$ 296,237,839$ 308,341,835$ Primary government: Net investment in capital assets 582,208,533$ 566,617,856$ 539,823,057$ 546,549,513$ 537,905,504$ Restricted 185,048,117 114,867,894 122,992,168 132,129,065 101,171,196 Unrestricted (427,700,798) (227,985,298) (279,586,492) (304,389,274) (281,424,133) Total primary government net position 339,555,852$ 453,500,452$ 383,228,733$ 374,289,304$ 357,652,567$ Fiscal Year 14.a Packet Pg. 399 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Changes in Net Position Last Ten Fiscal Years (Accrual Basis of Accounting) ______________________________________________________________________________ - 165 - 2011 2012 2013 2014 2015 Expenses: Governmental activities: General Government 22,992,136$ 22,915,176$ 19,896,979$ 18,045,239$ 23,792,572$ Public Safety 106,367,139 108,865,770 95,824,587 90,844,424 93,758,051 Streets 31,801,002 30,143,061 27,584,040 28,371,459 29,610,950 Culture and Recreation 7,112,156 7,649,897 6,258,991 8,053,521 10,805,969 Community Development 47,557,048 33,679,934 6,123,668 2,944,616 3,060,294 Community Service 11,223,506 7,823,261 6,360,346 6,062,512 5,684,705 Interest on long-term debt 13,299,213 7,234,246 2,383,832 6,324,491 3,994,357 Total governmental activitiesexpenses 240,352,200 218,311,345 164,432,443 160,646,262 170,706,898 Business-type activities: Integrated Waste 24,172,161 26,931,095 24,643,145 20,306,358 19,640,062 Water 36,343,754 39,951,698 38,302,554 36,303,452 35,673,702 Sewer 24,072,074 23,232,878 23,231,158 23,753,540 19,501,609 Sewer Collection - - - - - Total business-type activitiesexpenses 84,587,989 90,115,671 86,176,857 80,363,350 74,815,373 Total primary governmentexpenses 324,940,189 308,427,016 250,609,300 241,009,612 245,522,271 Program revenues: Governmental activities: Charges for services: General Government 509,158 3,466,570 4,738,387 2,496,930 2,459,211 Public Safety 7,696,287 8,399,399 8,210,410 5,921,344 5,242,941 Streets 6,357,593 6,476,362 8,405,822 7,907,263 12,826,107 Culture and Recreation 1,009,023 965,629 1,278,495 766,853 1,397,431 Community Development 4,413,761 4,981,622 4,621,495 4,025,505 579,930 Economic Development - - - - - Community Service 1,869,805 322,873 329,359 56,056 104,608 Operating grants and contributions 33,138,747 26,312,461 14,620,794 14,853,177 17,883,362 Capital grants and contributions 15,689,230 11,305,306 9,562,325 11,141,515 9,801,186 Total governmental activities program revenues 70,683,604 62,230,222 51,767,087 47,168,643 50,294,776 (Continued) Source: City Finance Department Fiscal Year 14.a Packet Pg. 400 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Changes in Net Position (Continued) Last Ten Fiscal Years (Accrual Basis of Accounting) ______________________________________________________________________________ - 166 - 2016 2017 2018 2019 2020 Expenses: Governmental activities: General Government 29,434,611$ 41,953,597$ 29,093,189$ 29,494,169$ 28,191,734$ Public Safety 85,867,627 74,606,563 97,710,294 98,603,681 106,626,978 Streets 32,928,851 32,621,290 33,332,099 44,613,103 46,239,864 Culture and Recreation 7,589,992 6,504,874 8,474,953 3,712,899 5,792,349 Community Development 4,443,029 5,085,625 4,808,376 6,679,568 7,583,733 Community Service 3,261,649 2,233,081 2,723,132 4,195,874 4,098,616 Interest on long-term debt 3,713,051 1,046,882 1,126,611 861,785 1,213,813 Total governmental activitiesexpenses 167,238,810 164,051,912 177,268,654 188,161,079 199,747,087 Business-type activities: Integrated Waste 15,323,676 1,183,561 1,177,266 777,167 1,393,739 Water 34,941,060 40,205,419 36,461,897 35,988,661 40,581,468 Sewer 20,015,296 26,638,434 25,258,155 27,787,317 27,475,781 Sewer Collection - 1,054,866 11,667,157 8,172,922 7,650,504 Total business-type activitiesexpenses 70,280,032 69,082,280 74,564,475 72,726,067 77,101,492 Total primary governmentexpenses 237,518,842 233,134,192 251,833,129 260,887,146 276,848,579 Program revenues: Governmental activities: Charges for services: General Government 6,877,634 2,563,248 3,069,172 1,057,221 1,121,285 Public Safety 5,759,696 4,089,638 4,806,016 7,770,680 6,646,933 Streets 12,388,167 10,850,828 7,380,078 6,158,572 8,217,713 Culture and Recreation 2,785,816 892,502 1,003,421 1,416,584 2,993,167 Community Development 5,404,887 4,839,812 4,944,299 3,941,191 4,110,272 Economic Development - - - - 29,190 Community Service 614,304 33,793 37,200 45,838 - Operating grants and contributions 11,865,542 7,263,130 21,652,775 24,786,515 24,531,954 Capital grants and contributions 9,031,491 8,230,994 283,942 270,819 535,026 Total governmental activities program revenues 54,727,537 38,763,945 43,176,903 45,447,420 48,185,540 (Continued) Source: City Finance Department Fiscal Year 14.a Packet Pg. 401 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Changes in Net Position (Continued) Last Ten Fiscal Years (Accrual Basis of Accounting) ______________________________________________________________________________ - 167 - 2011 2012 2013 2014 2015 Business-Type activities: Charges for services: Integrated Waste 24,529,480$ 24,371,665$ 24,968,040$ 24,911,930$ 25,212,322$ Water 33,027,707 37,106,217 37,868,846 35,968,790 32,334,811 Sewer 23,433,833 25,888,729 26,414,653 25,350,989 24,399,415 Sewer Collection - - - - - Operating grants and contributions 1,928,999 1,838,223 3,110,201 2,030,066 2,089,637 Capital grants and contributions 4,390,162 3,055,921 4,896,921 7,510,777 4,977,945 Total business-type activitiesprogram revenues 87,310,181 92,260,755 97,258,661 95,772,552 89,014,130 Total primary governmentprogram revenues 157,993,785 154,490,977 149,025,748 142,941,195 139,308,906 Net revenues (expenses): Governmental activities (169,668,596) (156,081,123) (112,665,356) (113,477,619) (120,412,122) Business-type activities 2,722,192 2,145,084 11,081,804 15,409,202 14,198,757 Total net revenues (expenses) (166,946,404) (153,936,039) (101,583,552) (98,068,417) (106,213,365) General revenues and other changes in net position: Governmental activities: Taxes: Sales tax 29,378,969 32,347,377 34,337,173 30,420,582 31,187,510 Property tax 63,442,311 46,708,872 28,103,713 38,885,226 40,571,180 Other taxes 31,124,606 30,911,640 32,873,019 32,573,029 34,554,151 Franchise tax 3,164,830 3,268,800 3,356,643 3,749,762 3,900,853 Investment income (unrestricted)2,262,551 - 688,248 892,498 856,229 Other general revenues 10,036,775 4,824,838 4,991,985 4,731,890 4,324,380 Intergovernmental (unrestricted)1,068,331 - - 2,105 1,001 Gain (loss) on sale of capital assets 2,546,550 - - - - Extraordinary item: Gain on dissolution of economic development agency - 49,844,437 - - - Annexation of City Fire Dept by County - - - - - Discontinuance of Solid Waste Ops - - - - - Long-Range Property Mgmt Plan - - - - - Loss on transfer of sewer collection operations - - - - - Chapter 9 Bankruptcy Settlement - - - - - Notes Receivable adjustment - - - - - Transfers 3,447,500 (65,000) 2,200,000 2,200,000 2,200,000 Total governmental activities 146,472,423 167,840,964 106,550,781 113,455,092 117,595,304 Business-type activities Investment income (unrestricted)1,410,638 1,031,912 287,469 581,185 635,061 Other revenues 625,550 1,444,963 296,440 1,884,946 2,348,834 Gain (loss) on disposal of capital assets - - - (11,798) - Extraordinary item: Discontinuance of Solid Waste Ops - - - - - Chapter 9 Bankruptcy Settlement - - - - - Transfers (3,447,500) 65,000 (2,200,000) (2,200,000) (2,200,000) Total business-type activities (1,411,312) 2,541,875 (1,616,091) 254,333 783,895 Total primary government 145,061,111 170,382,839 104,934,690 113,709,425 118,379,199 Changes in net position: Governmental activities (23,196,173) 11,759,841 (6,114,575) (22,527) (2,816,818) Business-type activities 1,310,880 4,686,959 9,465,713 15,663,535 14,982,652 Total primary government (21,885,293)$ 16,446,800$ 3,351,138$ 15,641,008$ 12,165,834$ (Continued) Source: City Finance Department Fiscal Year 14.a Packet Pg. 402 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Changes in Net Position (Continued) Last Ten Fiscal Years (Accrual Basis of Accounting) ______________________________________________________________________________ - 168 - 2016 2017 2018 2019 2020 Business-Type activities: Charges for services: Integrated Waste 19,547,672$ 644,710$ 503,657$ 500,242$ 555,920$ Water 29,388,782 32,883,423 37,786,156 38,819,578 39,937,495 Sewer 25,030,569 28,022,259 30,030,737 29,849,642 29,703,284 Sewer Collection - 2,860,627 7,679,020 7,555,960 7,656,675 Operating grants and contributions 1,696,219 2,047,946 1,776,883 1,832,879 1,991,747 Capital grants and contributions 4,271,325 3,551,138 4,854,784 10,121,344 4,604,699 Total business-type activitiesprogram revenues 79,934,567 70,010,103 82,631,237 88,679,645 84,449,820 Total primary governmentprogram revenues 134,662,104 108,774,048 125,808,140 134,127,065 132,635,360 Net revenues (expenses): Governmental activities (112,511,273) (125,287,967) (134,091,751) (142,713,659) (151,561,547) Business-type activities 9,654,535 927,823 8,066,762 15,953,578 7,348,328 Total net revenues (expenses) (102,856,738) (124,360,144) (126,024,989) (126,760,081) (144,213,219) General revenues and other changes in net position: Governmental activities: Taxes: Sales tax 36,680,419 43,641,309 43,890,011 49,450,785 48,179,314 Property tax 41,344,972 13,749,684 18,498,848 17,101,369 18,814,022 Other taxes 36,498,187 35,491,197 36,806,979 36,092,568 34,869,343 Franchise tax 4,925,012 10,777,853 10,657,848 11,550,447 12,684,556 Investment income (unrestricted)1,613,925 674,345 1,479,966 3,864,707 3,958,589 Other general revenues 4,157,249 3,678,262 4,957,964 2,920,461 4,223,767 Intergovernmental (unrestricted)- - - - - Gain (loss) on sale of capital assets (1,130,211) (446,020) (21,932) 58,949 91,223 Extraordinary item: Gain on dissolution of economic development agency - - - - - Annexation of City Fire Dept by County (5,010,868) - - - - Discontinuance of Solid Waste Ops (10,069,000) - - - - Long-Range Property Mgmt Plan - 46,766,207 - - - Loss on transfer of sewer collection ops - (8,376,366) - - - Chapter 9 Bankruptcy Settlement - 76,034,666 - - - Notes Receivable adjustment - - (24,902,675) - - Transfers 14,168,866 (27,798,309) 590,005 - - Total governmental activities 123,178,551 194,192,828 91,957,014 121,039,286 122,820,814 Business-type activities Investment income (unrestricted)875,707 129,944 534,899 3,112,261 2,845,596 Other revenues 2,072,951 1,567,787 1,696,912 2,044,179 1,932,163 Gain (loss) on disposal of capital assets - (1,123,192) 52,419 - (22,091) Extraordinary item: Discontinuance of Solid Waste Ops 20,839,506 - - - - Chapter 9 Bankruptcy Settlement - 55,787 - - - Transfers (14,168,866) 31,024,659 - (8,375,074) - Total business-type activities 9,619,298 31,654,985 2,284,230 (3,218,634) 4,755,668 Total primary government 132,797,849 225,847,813 94,241,244 117,820,652 127,576,482 Changes in net position: Governmental activities 10,667,278 68,904,861 (42,134,737) (21,674,373) (28,740,733) Business-type activities 19,273,833 32,582,808 10,350,992 12,734,944 12,103,996 Total primary government 29,941,111$ 101,487,669$ (31,783,745)$ (8,939,429)$ (16,636,737)$ (Concluded) Source: City Finance Department Fiscal Year 14.a Packet Pg. 403 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Fund Balances of Governmental Funds Last Ten Fiscal Years (Modified Accrual Basis of Accounting) ______________________________________________________________________________ - 169 - 2011 2012 2013 2014 2015 General fund: Nonspendable 101,054$ 95,306$ 74,376$ 415,286$ 635,493$ Restricted - - - 1,208,016 1,226,630 Committed - - - 1,439,131 905,724 Assigned - - - - - Unassigned (1,282,658) (12,304,390) (7,220,531) 10,327,070 15,260,350 Total general fund (1,181,604) (12,209,084) (7,146,155) 13,389,503 18,028,197 All other governmental funds: Nonspendable 2,962,070 - 200,000 77,284,512 65,167,831 Restricted 242,457,518 104,770,342 107,731,704 38,718,920 47,298,125 Committed 356,373 589,180 - - - Assigned 118,462 79,971 - - - Unassigned (40,459,403) (3,240,711) (2,504,245) (682,322) (906,217) Total all other governmental funds 205,435,020$ 102,198,782$ 105,427,459$ 115,321,110$ 111,559,739$ Source: City Finance Department Fiscal Year 14.a Packet Pg. 404 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Fund Balances of Governmental Funds (Continued) Last Ten Fiscal Years (Modified Accrual Basis of Accounting) ______________________________________________________________________________ - 170 - 2016 2017 2018 2019 2020 General fund: Nonspendable 516,258$ 40,858,145$ 33,023,125$ 32,855,157$ 32,273,054$ Restricted 1,270,317 543,011 3,351 73,416 1,556,304 Committed 53,451 133,282 68,387 68,387 31,775,137 Assigned - - - - 1,517,842 Unassigned 32,571,653 30,218,397 38,995,689 31,543,452 597,818 Total general fund 34,411,679 71,752,835 72,090,552 64,540,412 67,720,155 All other governmental funds: Nonspendable 44,059 59,093,468 300 - - Restricted 114,064,965 48,460,477 89,723,105 97,648,385 99,614,892 Committed - - - - - Assigned - - - - - Unassigned (87,413) (32,806) - (35,991) (17,380) Total all other governmental funds 114,021,611$ 107,521,139$ 89,723,405$ 97,612,394$ 99,597,512$ Source: City Finance Department Fiscal Year 14.a Packet Pg. 405 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years (Modified Accrual Basis of Accounting) ______________________________________________________________________________ - 171 - 2011 2012 2013 2014 2015 Revenues: Taxes 123,896,615$ 109,518,983$ 94,933,808$ 104,126,781$ 108,248,780$ Licenses and permits 8,516,516 10,243,232 10,636,856 9,706,800 11,226,693 Impact fees 618,030 239,553 1,771,424 1,761,012 2,915,704 Fines and forfeitures 2,338,684 1,973,047 1,844,472 2,490,649 1,859,659 Investment Income 2,485,053 1,148,831 688,248 549,969 808,225 Lease - 2,049,151 12,942 704,726 396,250 Intergovernmental 48,775,893 34,030,047 25,797,462 23,691,032 23,211,589 Charges for services 12,886,715 12,325,700 12,091,896 11,408,243 10,432,822 Other 8,925,459 8,036,027 6,370,315 4,613,341 5,851,039 Total revenues 208,442,965 179,564,571 154,147,423 159,052,553 164,950,761 Expenditures: Current: General Government 17,234,673 21,691,566 16,293,262 17,285,460 23,028,342 Public Safety 101,657,184 102,876,767 94,108,772 87,314,975 86,113,657 Streets 24,433,688 16,780,012 13,985,990 18,506,025 16,779,236 Culture and Recreation 6,579,287 7,522,783 5,267,641 7,398,022 10,015,698 Community Development 15,901,097 9,852,580 5,607,114 2,828,621 3,550,617 Community Service 10,266,256 7,967,618 5,358,123 5,682,896 5,109,127 Economic Development 29,735,854 18,074,203 - - - Debt service: Principal retirement 12,627,234 9,872,237 4,784,483 3,838,738 9,897,441 Interest and fiscal charges 13,745,859 9,716,214 1,538,016 2,559,661 1,488,074 Total expenditures 232,181,132 204,353,980 146,943,401 145,414,398 155,982,192 Excess (deficiency) of revenues over (under) expenditures (23,738,167) (24,789,409) 7,204,022 13,638,155 8,968,569 Other financing sources (uses): Transfers in 33,952,713 38,439,148 2,616,226 6,960,097 3,087,398 Transfers out (30,530,449) (36,494,374) (416,226) (4,757,992) (886,397) Issuance of long-term debt 23,171,122 18,000,000 - - - Sale of capital assets 2,546,549 (5,248,157) 142,473 - - Total other financing sources (uses) 29,139,935 14,696,617 2,342,473 2,202,105 2,201,001 Extraordinary item: Gain (loss) on dissolution of economic development agency - (110,339,812) - - - - - - - - Chapter 9 Bankruptcy Settlement - - - - - Notes Receivable adjustment - - - - - Net change in fund balances 5,401,768$ (120,432,604)$ 9,546,495$ 15,840,260$ 11,169,570$ Expenditures for capitalized assets 11,047,330 4,585,686 3,343,257 5,932,143 5,682,353 Debt service as a percentage of noncapital expenditures 11.9% 9.8% 4.4% 4.6% 7.6% Source: City Finance Department LRPMP Transfers from Successor Agency Fiscal Year 14.a Packet Pg. 406 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Changes in Fund Balances of Governmental Funds (Continued) Last Ten Fiscal Years (Modified Accrual Basis of Accounting) ______________________________________________________________________________ - 172 - 2016 2017 2018 2019 2020 Revenues: Taxes 116,474,108$ 101,310,156$ 106,751,261$ 111,195,458$ 112,084,820$ Licenses and permits 11,515,983 10,646,234 12,021,242 12,305,689 13,210,675 Impact fees 2,409,364 2,690,413 2,494,953 1,858,064 4,188,573 Fines and forfeitures 2,642,998 2,268,213 2,476,338 2,737,250 2,611,840 Investment Income 1,528,158 693,247 683,016 3,182,715 3,202,705 Lease 569,583 734,853 1,367,014 1,099,730 1,193,281 Intergovernmental 16,672,907 12,581,942 18,615,104 21,839,908 21,575,427 Charges for services 13,124,068 10,536,949 8,653,717 8,804,880 7,457,572 Other 9,843,361 5,311,574 6,150,859 3,015,369 4,845,817 Total revenues 174,780,530 146,773,581 159,213,504 166,039,063 170,370,710 Expenditures: Current: General Government 30,023,905 41,208,970 27,143,743 23,544,245 24,482,935 Public Safety 90,994,899 63,871,615 77,574,446 84,537,639 83,369,905 Streets 20,009,090 19,562,136 21,471,387 40,588,569 38,399,067 Culture and Recreation 7,549,588 6,188,786 8,034,662 3,425,100 5,200,611 Community Development 4,501,617 4,978,005 4,608,360 5,756,424 7,002,361 Community Service 3,204,997 2,586,926 2,302,476 3,773,249 3,714,899 Economic Development - - - - - Debt service: Principal retirement 12,771,410 7,782,077 5,955,768 1,971,120 2,334,830 Interest and fiscal charges 1,009,214 946,770 1,202,292 872,500 1,200,950 Total expenditures 170,064,720 147,125,285 148,293,134 164,468,846 165,705,558 Excess (deficiency) of revenues over (under) expenditures 4,715,810 (351,704) 10,920,370 1,570,217 4,665,152 Other financing sources (uses): Transfers in 15,153,355 7,133,534 590,005 1,491,125 1,029,316 Transfers out (1,023,811) (16,487,965) (229,655) (1,491,125) (1,029,316) Issuance of long-term debt - - 4,414,002 - - Sale of capital assets - (254,169) - (823,688) 92,029 Total other financing sources (uses) 14,129,544 (9,608,600) 4,774,352 (823,688) 92,029 Extraordinary item: Gain (loss) on dissolution of economic development agency - - - - - - 38,848,755 - - - Chapter 9 Bankruptcy Settlement - 1,952,233 - - - Notes Receivable adjustment - - (24,902,675) - - Net change in fund balances 18,845,354$ 30,840,684$ (9,207,953)$ 746,529$ 4,757,181$ Expenditures for capitalized assets 3,658,379 3,702,189 5,807,791 10,386,763 7,860,472 Debt service as a percentage of noncapital expenditures 8.3% 6.1% 5.0% 1.8% 2.2% Source: City Finance Department LRPMP Transfers from Successor Agency Fiscal Year 14.a Packet Pg. 407 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Tax Revenues by Source – Governmental Funds Last Ten Fiscal Years ______________________________________________________________________________ - 173 - Fiscal Year Ended Property Sales Franchise Utilities User Transient Other June 30 Tax Tax Tax Tax Occupancy Tax Taxes Total 2011 63,442,311$ 29,378,969$ 3,164,830$ 22,089,888$ 2,507,283$ 6,527,435$ 127,110,716$ 2012 46,708,872 32,347,377 3,268,800 22,127,129 2,217,325 6,567,186 113,236,689 2013 28,103,713 34,337,173 3,356,643 23,159,846 2,921,980 6,791,193 98,670,548 2014 38,885,226 30,420,582 3,749,762 22,498,934 2,935,962 7,138,133 105,628,599 2015 40,571,180 31,187,510 3,900,853 23,921,806 3,463,262 7,169,083 110,213,694 2016 41,344,972 36,680,419 4,925,012 23,986,813 4,327,091 8,184,283 119,448,590 2017 13,749,684 43,641,309 10,777,853 23,591,923 4,502,185 7,397,089 103,660,043 2018 18,498,848 43,890,011 10,657,848 23,666,459 4,987,491 8,153,029 109,853,686 2019 17,101,369 49,450,785 11,550,447 22,924,522 4,950,170 8,217,876 114,195,169 2020 18,814,022 48,179,314 12,684,556 22,680,847 4,525,751 7,662,745 114,547,235 Source: City Finance Department 14.a Packet Pg. 408 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years ______________________________________________________________________________ - 174 - Fiscal Year Taxable Taxable Total Ended Less Assessed Less Assessed Direct Tax June 30 Secured Unsecured Exemptions Value Secured Unsecured Exemptions Value Rate 2011 4,956,261,271 252,261,265 (143,550,006) 5,064,972,530 4,678,734,272 602,483,225 - 5,281,217,497 0.43% 2012 4,959,942,790 252,999,295 (141,201,758) 5,071,740,327 4,486,175,902 607,066,114 - 5,093,242,016 0.43% 2013 5,023,911,140 305,587,154 (137,553,197) 5,191,945,097 4,426,602,803 557,995,407 - 4,984,598,210 0.42% 2014 5,147,376,701 396,277,023 (133,837,593) 5,409,816,131 4,564,949,325 586,585,698 - 5,151,535,023 0.17% 2015 5,473,438,440 346,724,646 (130,541,256) 5,689,621,830 4,786,710,713 691,242,385 - 5,477,953,098 0.17% 2016 5,738,959,843 312,079,238 (128,316,274) 5,922,722,807 5,141,903,516 720,777,168 - 5,862,680,684 0.17% 2017 5,981,441,663 325,997,592 (133,119,032) 6,174,320,223 5,689,891,753 661,264,210 - 6,351,155,963 0.17% 2018 6,304,981,676 348,471,031 (130,446,387) 6,523,006,320 6,058,430,422 675,636,279 - 6,734,066,701 0.01% 2019 6,568,149,924 388,910,383 (127,261,499) 6,829,798,808 6,575,428,405 657,727,943 - 7,233,156,348 0.00% 2020 7,050,367,299 390,466,542 (125,025,813) 7,315,808,028 7,389,747,775 726,738,985 - 8,116,486,760 0.00% Note: Estimated value of taxable property not readily available in the State of California. The assessed valuation data shown above represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitations of Proposition 13 passed in 1978. Source: HdL, Coren & Cone, San Bernardino County Auditor/Controller (1) Redevelopment Agency was dissolved on February 1, 2012. City Redevelopment Agency (1) 14.a Packet Pg. 409 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Taxable Sales by Category Last Ten Calendar Years (In Thousands of Dollars) ______________________________________________________________________________ - 175 - 2010 2011 2012 2013 2014 Apparel Stores 90,419$ 96,167$ 99,537$ 108,646$ 117,123$ General Merchandise 361,075 376,398 395,002 409,662 419,542 Food Stores 74,798 75,885 76,724 73,363 76,856 Eating and Drinking Places 249,832 260,067 267,626 275,248 296,399 Building Materials 200,814 205,144 202,615 218,617 240,632 Auto Dealers and Supplies 253,219 304,857 337,231 389,457 423,024 Service Stations 269,261 326,498 354,383 343,211 330,727 Other Retail Stores 306,945 307,039 312,864 317,545 317,133 All Other Outlets 494,561 593,962 668,733 753,960 847,943 Total 2,300,924$ 2,546,017$ 2,714,715$ 2,889,709$ 3,069,379$ Note: Due to confidentiality issues, the names of the ten largest revenue payers are not available. The categories presented are intended to provide alternative information regarding the sources of the City's revenue. Sources: State Board of Equalization, California Department of Taxes and Fees Administration, State Controller's Office, The HdL Companies Calendar Year 14.a Packet Pg. 410 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Taxable Sales by Category (Continued) Last Ten Calendar Years (In Thousands of Dollars) ______________________________________________________________________________ - 176 - 2015 2016 2017 2018 2019 Apparel Stores 121,778$ 124,213$ 123,220$ 130,457$ 131,743$ General Merchandise 433,719 435,341 450,489 456,565 460,923 Food Stores 79,474 85,633 84,848 91,187 93,708 Eating and Drinking Places 320,304 337,469 362,303 378,339 392,808 Building Materials 249,553 265,323 277,395 294,083 287,929 Auto Dealers and Supplies 454,933 490,109 524,118 490,259 441,114 Service Stations 291,942 268,125 293,393 337,616 333,919 Other Retail Stores 340,705 341,002 340,216 366,959 372,002 All Other Outlets 913,442 999,364 1,064,621 1,205,531 1,306,306 Total 3,205,850$ 3,346,579$ 3,520,603$ 3,750,996$ 3,820,452$ Sources: State Board of Equalization, California Department of Taxes and Fees Administration, State Controller's Office, The HdL Companies Note: Due to confidentiality issues, the names of the ten largest revenue payers are not available. The categories presented are intended to provide alternative information regarding the sources of the City's revenue. Calendar Year 14.a Packet Pg. 411 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Principal Sales Tax Remitters Current Year and Nine Years Ago ______________________________________________________________________________ - 177 - Business Name Business Category Business Name Business Category 76 Service Stations Allstar Kia New Motor Vehicle Dealers Amazon Robotics Heavy Industrial Arco AM PM Service Stations Beacon Roofing Supply Building Materials Barr Lumber Building Materials Best Buy Electronics/Appliance Stores Best Buy Electronics/Appliance Stores Chaparral Motorsports Boats/Motorcycles Chaparral Motorsports Boats/Motorcycles Chevron Service Stations Chevron Service Stations Costco Discount Dept Stores Costco Discount Dept Stores Diamond Chevrolet of SB New Motor Vehicle Dealers Crest Chevrolet New Motor Vehicle Dealers Fairview Ford New Motor Vehicle Dealers Fairview Ford New Motor Vehicle Dealers Greenbrier Rail Services Transportation-Non-Auto Food N Fuel Service Stations Home Depot Building Materials Home Depot Building Materials Hub Construction Specialties Building Materials Interline Brands Plumbing/Electrical Supplies Inland Water Works Supply Heavy Industrial John Ray Co Building Materials Kohls Distribution Center Fullfillment Centers Kohls Distribution Center Fullfillment Centers Macys Department Stores Macys Department Stores Moss Bros Chrysler Dodge Jeep Ram Fiat New Motor Vehicle Dealers Moss Bros Chrysler Dodge Jeep Ram Fiat New Motor Vehicle Dealers Ross Family Apparel Nissan of San Bernardino New Motor Vehicle Dealers Sams Club w/Fuel Discount Dept Stores Office Depot Office Supplies/Furniture San Manuel Band of Mission Indians Leisure/Entertainment Ross Family Apparel Stater Bros Grocery Stores Sams Club w/ Fuel Discount Dept Stores Subaru of San Bernardino New Motor Vehicle Dealers Sears Department Stores Target Discount Dept Stores Stater Bros Grocery Stores Toyota of San Bernardino New Motor Vehicle Dealers Target Discount Dept Stores Walmart Supercenter Discount Dept Stores Toyota of San Bernardino New Motor Vehicle Dealers No Name on File 084192047 Receivables/Master Outlets Walmart Supercenter Discount Dept Stores *Firms listed alphabetically Source: The HdL Companies, State Board of Equalization Fiscal Year 2020 Fiscal Year 2011 14.a Packet Pg. 412 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Direct and Overlapping Property Tax Rates Last Ten Fiscal Years ______________________________________________________________________________ - 178 - Agency 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Basic Levy(1)1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 Colton Unified School Board 0.13040 0.14030 0.14880 0.11870 0.09730 0.11690 0.14540 0.09390 0.11160 0.10160 Crestline-Lake Arrowhead Water Agency - Bond 0.00000 0.05280 0.05510 0.05600 0.07250 0.07280 0.07280 0.08700 0.08700 0.11900 Redlands Unified School Bond 1993 0.06170 0.05820 0.06410 0.06290 0.05940 0.05670 0.05240 0.04940 0.03240 0.03390 Rialto Unified School Bond 0.07880 0.08560 0.07360 0.07040 0.06550 0.11940 0.09920 0.09570 0.07710 0.08480 San Bernardino Community College Bond 0.04670 0.03730 0.04590 0.04190 0.03930 0.04030 0.03500 0.03760 0.04070 0.05620 San Bernardino Unified School Bond 0.08840 0.09780 0.09980 0.13500 0.10810 0.11820 0.07950 0.10070 0.11260 0.09690 San Bernardino Valley Muni Water 0.16500 0.16500 0.16250 0.16250 0.16250 0.16250 0.16250 0.15250 0.15250 0.14250 Total Direct and Overlapping Rates(2)1.57100 1.63700 1.64980 1.64740 1.60460 1.68680 1.64680 1.61680 1.61390 1.63490 City's Share of 1% Levy Per Prop 13(3)0.16897 0.16897 0.16897 0.16897 0.16897 0.16897 0.16897 0.00000 0.00000 0.00000 Voter Approved City Debt Rate 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 Redevelopment Rate(4)1.16500 1.16500 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 Total Direct Rates(5)0.43116 0.42657 0.41962 0.16973 0.16974 0.16975 0.16975 0.00886 0.00000 0.00000 (2)Overlapping rates are those of local and county governments that apply to property owners within the City. Not all overlapping rates apply to all property owners. (3)City's Share of 1% Levy is based on the City's share of the general fund tax rate area with the largest net taxable value within the City. The ERAF portion of the City's Levy has been subtracted where known. (4)Redevelopment Rate is based on the largest RDA tax rate area and only includes rate(s) from indebtedness adopted prior to 1989 per California State statute. RDA direct and overlapping rates are applied only to the incremental property values. The approval of ABX1 26 eliminated Redevelopment from the State of California for the fiscal year 2012/13 and years thereafter. (5)Total Direct Rate is the weighted average of all individual direct rates applied by the City preparing the statistical section information and excludes revenues derived from aircraft. Beginning in fiscal year 2013-14, the Total Direct Rate no longer includes revenue generated from the former redevelopment tax rate areas. Challenges to recognized enforceable obligations are assumed to have been resolved during fiscal year 2012-13. For the purposes of this report, residual revenue is assumed to be distributed to the City in the same proportions as general fund revenue. Fiscal Year (1)In 1978, California voters passed Proposition 13 which set the property tax rate at a 1.00% fixed amount. This 1.00% is shared by all taxing agencies for which the subject property resides within. In addition to the 1.00% fixed amount, property owners are charged taxes as a percentage of assessed property values for the payment of any voter approved bonds. 14.a Packet Pg. 413 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Principal Property Taxpayers Current Year and Ten Years Ago ______________________________________________________________________________ - 179 - Percent of Percent of Total City Total City Taxable Taxable Taxable Taxable Assessed Assessed Assessed Assessed Taxpayer:Value Rank Value Value Rank Value Stater Bros Markets 387,428,824$ 1 2.49% 373,021,236$ 1 3.55% Amazon Com Services Inc 133,036,174 2 0.85% HW Southgate Building LLC 116,206,307 3 0.75% - WM Inland Investors IV LLC 115,998,770 4 0.75% 58,138,324 9 0.55% IE Logistics Inc 106,968,570 5 0.69% - Gear 6207 Cajon Propco LLC 96,638,000 6 0.62% Trader Joes Company 85,969,736 7 0.55% San Manuel Band of Mission Indians 79,811,840 8 0.51% - Harvest A OSR LLC 77,785,873 9 0.50% - BSREP III Central LLC 74,657,419 10 0.48% Rancon Realty Fund 153,994,401 2 1.47% Lit Industrial LP 115,393,867 3 1.10% WP Of CT Cajon LLC 98,694,291 4 0.94% Opus Real Estate CA VII Northpointe 77,336,278 5 0.74% SP4 Gateway South I LP 64,252,201 6 0.61% 786 Central LLC 61,862,958 7 0.59% Westgate No 1 LP 59,980,555 8 0.57% Prologis 52,343,742 10 0.50% 1,274,501,513$ 8.19% 1,115,017,853$ 10.62% 2020 2010 14.a Packet Pg. 414 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Property Tax Levies and Collections Last Ten Fiscal Years ______________________________________________________________________________ - 180 - Fiscal Taxes Levied Collections in Year Ended for the Percent Subsequent Percent June 30 Fiscal Year Amount of Levy Years Amount of Levy 2011 10,567,101$ 10,184,419$ 96.38% 430,365$ 10,614,784$ 100.45% 2012 10,547,495 9,552,101 90.56% 291,277 9,843,378 93.32% 2013 9,693,543 9,218,290 95.10% 167,799 9,386,089 96.83% 2014 10,139,727 9,783,362 96.49% 265,648 10,049,010 99.11% 2015 10,933,170 10,059,145 92.01% 219,257 10,278,402 94.01% 2016 11,030,576 10,593,161 96.03% 208,567 10,801,728 97.93% 2017(1)N/A 95,314 N/A 116,204 211,518 N/A 2018(1)N/A 197,198 N/A 88 197,286 N/A 2019(1)N/A 235,242 N/A 5,550 240,792 N/A 2020(1)N/A 64,212 N/A 3,055 67,267 N/A Note: The amounts presented include City property taxes only. In 2011 penalties started to be excluded from amounts collected. Source: County of San Bernardino, Auditor/Controller - Recorder - County Clerk (1)Effective, July 1, 2016, fire protection and emergency medical response services were transferred to the San Bernardino County Fire Protection District (SBCFPD). To fund this transfer, the City is required to transfer revenue from property taxes and 35 percent of its Vehicle Registration Fees to SBCFPD. Fiscal Year of Levy Collected within the Total Collections to Date 14.a Packet Pg. 415 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Top 10 Customers – Water, Sewer Treatment, Sewer Collection Current Year ______________________________________________________________________________ - 181 - Percent of Percent of Percent of Total Total Sewer Total Sewer Customer Water Customer Treatment Customer Collection Customer:Revenue Rank Revenue Revenue Rank Revenue Revenue Rank Revenue City of San Bernardino 1,066,189$ 1 2.67% 113,763$ 7 0.38% 64,715$ 3 0.85% San Bernardino City Unified School District 783,486 2 1.96% 286,350 2 0.96% 110,440 1 1.44% California State University, San Bernardino 409,705 3 1.03% County of San Bernardino 236,521 4 0.59% 443,519 1 1.49% 74,275 2 0.97% Housing Authority 213,223 5 0.53% 171,854 4 0.58% 32,342 10 0.42% Cott Beverages 209,118 6 0.52% W. Dean Weidner 155,835 7 0.39% 97,355 9 0.33% St. Bernardine Hospital 130,293 8 0.33% 184,013 3 0.62% 58,056 5 0.76% Pama Management Co. 124,145 9 0.31% 161,235 5 0.54% 61,143 4 0.80% Acacia Park Apartments 123,889 10 0.31% Lido Condominiums 115,519 6 0.39% 38,853 7 0.51% Sequoia Plaza Mobile Home Park 98,619 8 0.33% Crest Haven Apartments 96,147 10 0.32% 34,102 8 0.45% Broadstone Investors LLC 32,578 9 0.43% Rancho Meridian MHE/Santiago 41,231 6 0.54% 3,452,404$ 8.64% 1,768,374$ 5.95% 547,735$ 7.15% Source: City Water Department Water Sewer Treatment Sewer Collection 14.a Packet Pg. 416 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Connections and Revenues by User Type – Water Last Ten Fiscal Years ______________________________________________________________________________ - 182 - User Type Connections Revenue Connections Revenue Connections Revenue Connections Revenue Single family 36,042 22,909,054$ 36,006 21,579,693$ 35,824 20,476,866$ 35,825 17,346,414$ Multiple family 2,907 5,222,345 2,903 5,157,997 2,904 4,944,978 2,899 4,449,204 Commercial 3,117 6,482,560 3,104 6,320,900 3,111 6,117,493 3,131 5,750,672 Landscape 1,181 4,542,108 1,150 4,256,390 1,159 4,694,704 1,121 3,789,527 Other 2,174 781,428 2,056 808,227 2,018 748,141 1,956 557,392 Total all users 45,421 39,937,495$ 45,220 38,123,207$ 45,016 36,982,182$ 44,932 31,893,209$ Connections Revenue Connections Revenue Connections Revenue Connections Revenue Single family 35,729 15,688,749$ 35,695 16,775,834$ 35,012 18,583,708$ 34,913 18,741,773$ Multiple family 2,873 4,225,832 2,869 4,349,601 2,824 4,591,290 2,820 4,704,384 Commercial 3,092 4,913,942 3,097 6,332,882 3,085 6,566,344 3,082 6,800,310 Landscape 1,129 3,203,907 1,130 3,079,610 1,140 3,616,135 1,104 3,591,678 Other 1,905 677,180 1,791 679,606 1,703 913,810 1,663 599,210 Total all users 44,728 28,709,610$ 44,582 31,217,533$ 43,764 34,271,287$ 43,582 34,437,355$ Connections Revenue Connections Revenue Single family 34,716 18,094,052$ 34,695 15,665,580$ Multiple family 2,801 4,510,962 2,806 4,025,079 Commercial 3,117 5,790,427 3,117 4,678,003 Landscape 1,151 3,321,846 1,149 2,745,990 Other 1,626 1,597,791 1,571 701,296 Total all users 43,411 33,315,078$ 43,338 27,815,948$ Source: City Water Department 2012 2011 2020 2019 2018 2017 2016 2015 2014 2013 14.a Packet Pg. 417 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Water Rate History – Minimum Monthly Charge Last Ten Fiscal Years ______________________________________________________________________________ - 183 - Effective Date 1/2" 5/8" 3/4" 1" 1-1/2" 2" 3" 4" 6" 8" 10" 2/1/2010 10.55 10.55 13.00 17.90 30.15 44.85 79.15 128.15 250.70 397.75 569.30 1/1/2011 12.20 12.20 15.15 21.00 35.75 53.45 94.75 153.70 301.15 478.10 684.55 1/1/2012 12.90 12.90 16.15 22.60 38.80 58.20 103.50 168.20 330.00 524.15 750.65 7/1/2013 12.90 12.90 16.15 22.60 38.80 58.20 103.50 168.20 330.00 524.15 750.65 7/1/2014 12.90 12.90 16.15 22.60 38.80 58.20 103.50 168.20 330.00 524.15 750.65 7/1/2015 12.90 12.90 16.15 22.60 38.80 58.20 103.50 168.20 330.00 524.15 750.65 10/1/2016 16.09 16.09 20.15 28.19 48.40 72.60 129.12 197.36 411.68 653.88 936.44 7/1/2017 19.58 19.58 24.51 34.30 58.88 88.32 157.06 240.07 500.78 795.40 1,139.12 7/1/2018 23.39 23.39 29.28 40.98 70.35 105.52 187.66 286.63 598.33 950.34 1,361.01 7/1/2019 23.39 23.39 29.28 40.98 70.35 105.52 187.66 286.63 598.33 950.34 1,361.01 7/1/2020 23.39 23.39 29.28 40.98 70.35 105.52 187.66 286.63 598.33 950.34 1,361.01 Source: City Water Department Monthly Charge(1) (1)Effective July 1, 2007 and July 1, 2008, all water usage except municipal will be billed at the rate of $0.94 and $0.97 per 100 cubic feet, respectively, with no minimum allowance. 14.a Packet Pg. 418 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Connections and Revenues by User Type – Sewer Treatment Last Ten Fiscal Years ______________________________________________________________________________ - 184 - User Type Connections Revenue Connections Revenue Connections Revenue Connections Revenue San Bernardino Residential 31,828 $10,191,482 33,051 $10,146,660 32,945 $10,135,132 32,960 $9,756,592 San Bernardino Nonresidential 5,340 8,463,554 5,531 8,645,032 5,526 8,834,641 5,471 8,010,240 East Valley Residential 18,477 4,778,152 18,477 4,778,152 18,477 4,765,218 18,477 4,622,944 East Valley Nonresidential 1,050 3,483,724 1,050 3,550,973 1,050 3,579,348 1,050 3,083,475 Loma Linda Residential 2,856 1,163,501 2,799 1,171,706 4,824 1,167,823 4,723 1,107,201 Loma Linda Nonresidential 168 1,622,872 345 1,557,119 703 1,548,574 593 1,441,807 Total all users 59,719 $29,703,285 61,253 $29,849,643 63,525 $30,030,737 63,274 $28,022,259 Connections Revenue Connections Revenue Connections Revenue Connections Revenue San Bernardino Residential 32,889 $8,746,617 32,874 $8,056,827 32,537 $8,111,634 32,563 $7,922,936 San Bernardino Nonresidential 5,377 7,125,053 5,344 7,240,533 5,410 8,033,072 5,447 8,332,214 East Valley Residential 18,477 4,008,039 18,480 4,093,625 18,404 4,149,836 18,925 4,188,434 East Valley Nonresidential 1,060 2,825,971 1,051 2,571,813 1,115 2,725,075 1,126 2,434,118 Loma Linda Residential 5,948 1,008,071 5,040 997,242 4,656 991,387 4,663 1,063,124 Loma Linda Nonresidential 591 1,308,474 588 1,294,612 592 1,330,102 585 1,549,643 Total all users 64,342 $25,022,225 63,377 $24,254,651 62,714 $25,341,106 63,309 $25,490,469 Connections Revenue Connections Revenue San Bernardino Residential 32,571 $7,650,142 32,447 $7,053,263 San Bernardino Nonresidential 5,412 7,877,416 5,416 7,131,988 East Valley Residential 18,813 4,019,127 18,700 3,645,721 East Valley Nonresidential 1,128 2,492,375 1,138 2,070,233 Loma Linda Residential 4,443 933,648 4,648 870,734 Loma Linda Nonresidential 589 1,258,747 584 1,048,402 Total all users 62,956 $24,231,455 62,933 $21,820,341 Source: City Water Department 2012 2011 2020 2019 2018 2017 2016 2015 2014 2013 14.a Packet Pg. 419 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Sewer Treatment Rate History Last Ten Fiscal Years ______________________________________________________________________________ - 185 - 1/1/2010 2/1/2011 1/1/2012 10/1/2015 7/1/2016 7/1/2017 7/1/2018 7/1/2019 7/1/2020 Residential (monthly per EDU)16.00 17.00 18.50 20.65 22.38 23.10 23.10 23.10 23.10 Commercial: Commodity Charge (per HCF): Multi-family, mobile home parks 0.95 1.10 1.25 1.36 1.48 1.53 1.53 1.53 1.53 Retail, commercial, light industrial 1.90 2.00 2.10 2.28 2.47 2.55 2.55 2.55 2.55 Auto repair, car wash 1.30 1.30 1.30 1.41 1.53 1.58 1.58 1.58 1.58 Offices, motels (w/o restaurants) 1.50 1.50 1.50 1.63 1.77 1.83 1.83 1.83 1.83 Restaurants, hotels 2.00 2.35 2.70 2.93 3.18 3.28 3.28 3.28 3.28 Laundromats 1.30 1.40 1.50 1.63 1.77 1.83 1.83 1.83 1.83 Hospitals, convalescent homes 0.95 1.15 1.35 1.46 1.58 1.63 1.63 1.63 1.63 Schools, churches, nursery schools 0.70 0.90 1.10 1.19 1.29 1.33 1.33 1.33 1.33 Industrial: Discharge Flow (per million gallons) 900.00 900.00 900.00 977.00 1,060.00 1,094.00 1,094.00 1,094.00 1,094.00 Biological Oxygen demand (per 1,000 lbs) 292.00 330.00 360.00 391.00 424.00 438.00 438.00 438.00 438.00 Suspended Solids (per 1,000 lbs) 640.00 640.00 640.00 694.00 753.00 778.00 778.00 778.00 778.00 Source: City Water Department Fiscal Year 14.a Packet Pg. 420 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Connections and Revenues by User Type – Sewer Collection Last Four Fiscal Years* ______________________________________________________________________________ - 186 - User Type Connections Revenue Connections Revenue Connections Revenue Connections Revenue Residential-Single Family 31,889 $4,054,020 33,127 $3,927,784 32,939 $3,916,946 32,899 $3,719,798 Residential-Multi Family 1,555 412,095 1,606 424,665 1,607 424,024 1,609 405,007 Residential- Multi Family 4 Units + 18 55,921 17 44,420 16 44,945 15 41,351 Comm/Land/Lt. Industrial/Non-Res. 3,069 2,588,912 3,180 2,601,804 3,198 2,668,497 3,204 2,467,470 Education-Public 37 48,082 27 21,700 27 26,118 27 27,420 Education-Private 150 60,941 152 61,858 150 67,985 150 61,779 Hospital/Convalescent Homes 35 173,367 35 166,768 35 170,063 35 161,182 Office/Motel-No Restaurant 92 61,027 94 69,280 94 66,015 96 58,587 Restaurant/ Hotel w/ Restaurant 52 35,480 47 37,750 41 35,963 37 32,509 Auto Repair/Car Wash 221 73,487 229 74,854 231 89,565 229 75,421 Laundromat 5 21,771 5 23,362 5 23,160 5 21,824 CS Irrigation 21 71,571 43 115,905 45 145,737 46 158,834 Totals IVDA 48 - 50 - 49 - 51 - Total all users 37,192 $7,656,674 38,613 $7,570,150 38,438 $7,679,020 38,402 $7,231,183 Source: City Water Department * As the Sewer Collection Utility was transferred to the Water Department on May 1, 2017, prior year data is unavailable. Data provided for 2017 represents the entire year. 2020 2019 20172018 14.a Packet Pg. 421 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Sewer Collection Rate History Last Ten Fiscal Years ______________________________________________________________________________ - 187 - 1/1/2010 10/1/2015 7/1/2016 7/1/2017 7/1/2018 7/1/2019 7/1/2020 Residential (monthly per EDU)4.00 9.00 9.45 9.90 9.90 9.90 9.90 Multi-Family Multi-family, 2 units 8.00 18.00 18.90 19.85 19.85 19.85 19.85 Multi-family, 3 units 12.00 27.00 28.35 29.75 29.75 29.75 29.75 Multi-family, 4 or more units, Non-res. Monthly Charge 1.25 2.80 2.95 3.10 3.10 3.10 3.10 Usage Charge (per HCF) 0.35 0.79 0.83 0.87 0.87 0.87 0.87 Source: City Water Department Fiscal Year 14.a Packet Pg. 422 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements 14.a Packet Pg. 423 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Ratios of Outstanding Debt by Type Last Ten Fiscal Years ______________________________________________________________________________ - 188 - 2011 2012 2013 2014 2015 Governmental Activities: Lease revenue bonds 11,145,000$ 9,810,000$ 7,505,000$ 6,925,000$ 6,315,000$ Tax allocation bonds(1)134,670,538 - - - - Certificates of participation(2)10,940,000 4,520,000 4,270,000 4,010,000 3,735,000 Pension obligation bonds(2)47,075,251 46,140,860 51,862,482 52,202,499 52,924,744 Other 46,518,126 23,838,553 22,983,032 21,351,657 18,235,640 Total governmental activities 250,348,915 84,309,413 86,620,514 84,489,156 81,210,384 Business-type Activities: Capital leases 13,149,895 10,280,057 7,343,367 4,792,949 2,652,586 Notes payable 24,439,995 31,547,225 29,451,835 26,174,480 22,826,237 Certificates of participation 17,196,320 14,707,332 12,077,692 9,292,368 6,346,308 Water bonds 25,000 15,000 - - - Total business-type activities 54,811,210 56,549,614 48,872,894 40,259,797 31,825,131 Total Primary Government 305,160,125$ 123,549,027$ 135,493,408$ 124,748,953$ 113,035,515$ Percentage of Personal Income(3)4.65% 1.81% 1.94% 1.76% 1.48% Debt per Capita(3)1,452$ 586$ 639$ 587$ 528$ (3) Based on most current data available. (1) As a result of the dissolution of the Economic Development Agency on January 31, 2012, indebtedness was transferred to the Successor Agency. (2) Upon approval of the City's Plan of Adjustment by the U.S. Bankruptcy Court on June 15, 2017, certain long-term liabilities of the City were reduced or eliminated. Fiscal Year 14.a Packet Pg. 424 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Ratios of Outstanding Debt by Type (Continued) Last Ten Fiscal Years ______________________________________________________________________________ - 189 - 2016 2017 2018 2019 2020 Governmental Activities: Lease revenue bonds 5,670,000$ 4,985,000$ 4,414,002$ 3,598,360$ 2,751,781$ Tax allocation bonds(1)- - - - - Certificates of participation(2)3,445,000 - - - - Pension obligation bonds(2)53,608,476 - - - - Other 12,219,665 30,383,546 28,820,616 27,055,863 24,940,729 Total governmental activities 74,943,141 35,368,546 33,234,618 30,654,223 27,692,510 Business-type Activities: Capital leases - - - - - Notes payable 20,568,662 900,000 600,000 300,000 - Certificates of participation - - - - - Water bonds - 88,655,746 87,091,704 85,482,663 83,813,621 Total business-type activities 20,568,662 89,555,746 87,691,704 85,782,663 83,813,621 Total Primary Government 95,511,803$ 124,924,292$ 120,926,322$ 116,436,886$ 111,506,131$ Percentage of Personal Income(3)1.20% 1.48% 1.42% 1.37% 1.31% Debt per Capita(3)443$ 576$ 547$ 531$ 512$ (3) Based on most current data available. (1) As a result of the dissolution of the Economic Development Agency on January 31, 2012, indebtedness was transferred to the Successor Agency. (2) Upon approval of the City's Plan of Adjustment by the U.S. Bankruptcy Court on June 15, 2017, certain long-term liabilities of the City were reduced or eliminated. Fiscal Year 14.a Packet Pg. 425 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Ratio of General Bonded Debt Outstanding Last Ten Fiscal Years (In Thousands, except Per Capita) ______________________________________________________________________________ - 190 - Fiscal Tax Pension Lease Percent of Year Ended Allocation Obligation Revenue Assessed Per June 30 Bonds (1)Bonds(2)Bonds Total Value Capita 2011 134,671$ 47,075$ 11,145$ 192,891$ 1.86% 918$ 2012 - 46,141 9,810 55,951 0.55% 265 2013 - 51,862 7,505 59,367 0.58% 280 2014 - 52,202 6,925 59,127 0.56% 278 2015 - 52,925 6,315 59,240 0.53% 277 2016 - 53,608 5,670 59,278 0.50% 275 2017 - - 4,985 4,985 0.04% 23 2018 - - 4,414 4,414 0.03% 20 2019 - - 3,598 3,598 0.03% 16 2020 - - 2,752 2,752 0.02% 13 Source: City Finance Department (1) As a result of the dissolution of the Economic Development Agency on January 31, 2012, indebtedness was transferred to the Successor Agency (2) Upon approval of the City's Plan of Adjustment by the U.S. Bankruptcy Court on June 15, 2017, certain long-term liabilities of the City were reduced or eliminated. Outstanding General Bonded Debt 14.a Packet Pg. 426 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Schedule of Direct and Overlapping Bonded Debt Current Fiscal Year ______________________________________________________________________________ - 191 - 2019-20 Assessed Valuation: 15,557,320,601$ OVERLAPPING TAX AND ASSESSMENT DEBT: Total Debt 6/30/2020 % Applicable(1) City's Share of Debt 6/30/19 San Bernardino Community College District 738,367,480$ 20.562% 151,823,121$ Colton Joint Unified School District 182,403,765$ 8.119% 14,809,362$ Redlands Unified School District 67,818,512$ 4.502% 3,053,189$ Rialto Unified School District 107,443,793$ 7.134% 7,665,040$ San Bernardino City Unified School District 230,457,341$ 76.731% 176,832,222$ Colton Joint Unified School District Community Facilities District No. 2 3,665,000$ 41.053% 1,504,592$ TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT 355,687,526$ DIRECT AND OVERLAPPING GENERAL FUND DEBT: San Bernardino County General Fund Obligations 239,140,000$ 6.564% 15,697,150$ San Bernardino County Pension Obligation Bonds 237,212,638$ 6.564% 15,570,638$ San Bernardino County Flood Control District General Fund Obligations 57,155,000$ 6.564% 3,751,654$ Colton Joint Unified School District Certificates of Participation 602,300$ 8.119% 48,901$ Redlands Unified School District Certificates of Participation 5,000,000$ 4.502% 225,100$ Rialto Unified School District Certificates of Participation 11,732,844$ 7.134% 837,021$ San Bernardino City Unified School District Certificates of Participation 96,515,000$ 76.731% 74,056,925$ City of San Bernardino General Fund Obligations 2,751,781$ 100.000% 2,751,781$ HUD Section 108 Note Payable 4,308,000$ 100.000% 4,308,000$ Fire Management Association Note Payable 300,000$ 100.000% 300,000$ City of San Bernardino Pension Obligation Settlement Agreement Notes Payable 20,058,171$ 100.000% 20,058,171$ Harriman Place Street Extension Lease 274,558$ 100.000% 274,558$ TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT 137,879,899$ OVERLAPPING TAX INCREMENT DEBT (Successor Agencies): San Bernardino County Inland Valley Project Tax Allocation Bonds 230,510,000$ 63.409% 146,164,086$ City of San Bernardino Tax Allocation Bonds 58,385,000$ 100.000% 58,385,000$ City of San Bernardino Certificates of Participation 2,745,000$ 100.000% 2,745,000$ TOTAL OVERLAPPING TAX INCREMENT DEBT 207,294,086$ TOTAL DIRECT DEBT 27,692,510$ TOTAL OVERLAPPING DEBT 673,169,001$ COMBINED TOTAL DEBT 700,861,511$ (2) Ratios to 2018-19 Assessed Valuation: Total Overlapping Tax and Assessment Debt 2.29% Total Direct Debt ($24,219,106) 0.02% Combined Total Debt 4.51% Ratios to Redevelopment Successor Agency Incremental Valuation 8,116,486,760$ Total Overlapping Tax Increment Debt 2.55% (1)The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's total taxable assessed value. (2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non-bonded capital lease obligations. Qualified Zone Academy Bonds are included based on principal due at maturity. 14.a Packet Pg. 427 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Legal Debt Margin Last Ten Fiscal Years (In Thousands) ______________________________________________________________________________ - 192 - 2011 2012 2013 2014 2015 Assessed valuation 10,489,740$ 10,306,184$ 10,314,097$ 10,695,189$ 11,298,116$ Conversion percentage 25%25%25%25%25% Adjusted assessed value 2,622,435 2,576,546 2,578,524 2,673,797 2,824,529 Debt limit percentage 15%15%15%15%15% Debt limit 393,365 386,482 386,779 401,070 423,679 Total net debt applicable to limit: General obligation bonds 69,160 66,436 69,192 68,352 67,830 Legal debt margin 324,205$ 320,046$ 317,586$ 332,717$ 355,850$ Total debt applicable to the limit as a percentage of debt limit 17.6%17.2%17.9%17.0%16.0% Fiscal Year Note: The government code of the State of California provides for a legal debt limit of 15% of gross assessed valuation. However, this provision was enacted when assessed valuation was based upon 25% of market value. Effective with the 1981-82 fiscal year, each parcel in now assessed at 100% of market value (as of the most recent change in ownership for that parcel). The computations shown above reflect a conversion of assessed valuation data for each fiscal year from the current full valuation perspective to the 25% level that was in effect at the time that the legal debt marginwasenacted bythe State of California forlocalgovernments located within the state. 14.a Packet Pg. 428 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Legal Debt Margin (Continued) Last Ten Fiscal Years (In Thousands) ______________________________________________________________________________ - 193 - 2016 2017 2018 2019 2020 Assessed valuation 11,913,720$ 12,658,595$ 13,387,519$ 14,190,217$ 15,557,321$ Conversion percentage 25%25%25%25%25% Adjusted assessed value 2,978,430 3,164,649 3,346,880 3,547,554 3,889,330 Debt limit percentage 15%15%15%15%15% Debt limit 446,764 474,697 502,032 532,133 583,400 Total net debt applicable to limit: General obligation bonds 67,198 9,060 8,069 6,813 5,497 Legal debt margin 379,566$ 465,637$ 493,963$ 525,320$ 577,903$ Total debt applicable to the limit as a percentage of debt limit 15.0%1.9%1.6%1.3%0.9% Fiscal Year Note: The government code of the State of California provides for a legal debt limit of 15% of gross assessed valuation. However, this provision was enacted when assessed valuation was based upon 25% of market value. Effective with the 1981-82 fiscal year, each parcel in now assessed at 100% of market value (as of the most recent change in ownership for that parcel). The computations shown above reflect a conversion of assessed valuation data for each fiscal year from the current full valuation perspective to the 25% level that was in effect at the time that the legal debt marginwasenacted bythe State of California for localgovernments located within the state. 14.a Packet Pg. 429 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Debt Service Coverage Last Ten Fiscal Years (In Thousands) ______________________________________________________________________________ - 194 - Water Utility Fiscal Operating Net Non- Net Year Ended Operating Expenses Operating Operating Available June 30 Revenue (Excl. Depr.) Income Income (Expense) Revenue Principal Interest Coverage 2011 33,028 29,786 3,242 2,025 5,267 1,352 548 2.77 2012 37,106 33,385 3,721 2,436 6,157 974 506 4.16 2013 37,869 31,925 5,944 2,492 8,436 1,227 548 4.75 2014 36,672 30,070 6,602 2,505 9,107 1,658 661 3.93 2015 33,121 30,139 2,982 2,703 5,685 1,748 570 2.45 2016 30,002 29,025 977 2,283 3,260 1,814 523 1.39 2017 33,359 30,597 2,762 2,584 5,346 247 219 11.47 2018 38,280 27,874 10,406 3,168 13,574 770 2,224 4.53 2019 39,100 27,482 11,618 3,810 15,428 795 2,196 5.16 2020 40,267 31,062 9,206 3,636 12,842 830 2,164 4.29 Sewer Utility Fiscal Operating Net Non- Net Year Ended Operating Expenses Operating Operating Available June 30 Revenue (Excl. Depr.) Income Income (Expense) Revenue Principal Interest Coverage 2011 25,889 17,409 8,480 (617) 7,863 2,130 3,706 1.35 2012 26,415 17,888 8,527 (462) 8,065 4,418 1,166 1.44 2013 25,671 18,548 7,123 (631) 6,492 4,724 757 1.18 2014 24,734 16,750 7,984 (1,129) 6,855 4,424 747 1.33 2015 25,411 16,750 8,661 1,099 9,760 4,629 569 1.88 2016 25,411 17,439 7,972 (224) 7,748 300 - 25.83 2017 28,612 20,037 8,575 39 8,614 300 133 19.89 2018 30,733 18,540 12,193 (721) 11,472 890 1,383 5.05 2019 30,546 20,554 9,992 1,362 11,354 910 1,356 5.01 2020 30,397 20,051 10,346 1,322 11,668 935 1,331 5.15 Tax Allocation Bonds Fiscal Year Ended Tax June 30(1)Increment(2)Principal Interest Coverage 2011 54 10 2 4.50 2012 41 15 1 2.56 2013 N/A N/A N/A N/A 2014 N/A N/A N/A N/A 2015 N/A N/A N/A N/A 2016 N/A N/A N/A N/A 2017 N/A N/A N/A N/A 2018 N/A N/A N/A N/A 2019 N/A N/A N/A N/A 2020 N/A N/A N/A N/A (1) As a result of the dissolution of the Economic Development Agency on January 31, 2012, indebtedness was transferred to the Successor Agency. (2) Tax Increment figures are net of related pass-through payments Source: City department's annual reports Debt Service Debt Service Debt Service 14.a Packet Pg. 430 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Demographic and Economic Statistics Last Ten Calendar Years ______________________________________________________________________________ - 195 - Personal Per Capita Fiscal Income Personal Unemployment Year Population (1)(in thousands) (2)Income(2)Rate(3) 2010 210,108 6,559,152$ 31,218$ 13.00% 2011 210,753 6,807,533 32,301 11.50% 2012 211,994 7,001,102 33,025 9.80% 2013 212,584 7,070,119 33,258 10.10% 2014 213,933 7,645,879 35,740 6.80% 2015 215,491 7,931,577 36,807 6.30% 2016 216,972 8,459,304 38,988 5.50% 2017 221,130 8,523,677 38,546 5.70% 2018 219,233 8,509,748 38,816 4.10% 2019 217,671 8,159,289 37,485 11.30% (1) California Department of Finance (2) U.S. Department of Commerce, Bureau of Economic Analysis for Riverside-San Bernardino-Ontario MSA (3) State of California, Economic Development Department; City of San Bernardino Economic Development Dept 14.a Packet Pg. 431 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Principal Employers Current Year and Nine Years Ago ______________________________________________________________________________ - 196 - Employer Ranking Number of Employees Ranking Number of Employees Stater Brothers* 1 15,000-25,000 9 1,000+ County of San Bernardino* 2 5,000-14,999 9 1,000+ San Bernardino City Unified School District* 3 5,000-14,999 5 1,000+ Kohl's Corporation* 4 5,000-14,999 Barrett Business Services, Inc.* 5 1,000-4,999 San Bernardino Community College District* 6 1,000-4,999 State of California, Department of Transportation* 7 1,000-4,999 2 1,000+ Loma Linda University Healthcare* 8 1,000-4,999 City of San Bernardino 9 1,117 3 1,000+ California State University, San Bernardino* 10 1,000-4,999 1 1,000+ Community Hospital of San Bernardino 4 1,000+ San Bernardino County Sheriff* 6 1,000+ San Bernardino County Superintendent of Schools 7 1,000+ San Manuel Band of Mission Indians 8 1,000+ Saint Bernardine Medical Center* 10 1,000+ Source: Economic Development Department Labor Market Information, Agency Websites and City's Annual Financial Report * Actual employment numbers not available Fiscal Year 2020 Fiscal Year 2011* 14.a Packet Pg. 432 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Budgeted Full-Time and Part-Time Positions by Function Last Ten Fiscal Years ______________________________________________________________________________ - 197 - Fiscal Year Function 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 General Government 183.5 176.5 110 131 146 148 147 117 107 92 Public Safety 795 725 611 615 611 607 470 474 468 427 Streets 270 257 95 221 270 254 185 138 131 129 Culture & Recreation 150 144 105 106 101 103 104 111 110 111 Community Development 72 70 27 26 35 37 39 38 33 26 Community Service 45 41 38 42 32 33 34 38 37 33 Enterprise 242 256 256 258 258 272 300 299 299 299 Total 1,758 1,670 1,242 1,399 1,453 1,454 1,279 1,215 1,185 1,117 Source: Budgeted positions for full and part time employees 14.a Packet Pg. 433 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Capital Asset Statistics Last Ten Fiscal Years ______________________________________________________________________________ - 198 - 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Pubic Safety: Police stations 1 1 1 1 1 1 1 1 1 1 Fire stations 12 12 12 12 12 12 * * * * Public Works: Miles of streets 629 629 ** ** ** ** ** ** 629 629 Street lights (City maintained) 5,100 5,900 ** ** ** ** ** ** ** ** Street lights (SCE maintained) 7,700 7,500 ** ** ** ** ** ** ** ** Street traffic controllers (signals) 272 272 ** ** ** ** ** ** 289 289 Street traffic controllers (ped-xing) 19 19 ** ** ** ** ** ** 19 19 Parks and Recreation: Parks 39 37 37 37 37 37 37 37 36 36 Park acreage 618 545 545 545 545 545 545 545 530 507 Water: Water mains (miles) 586 587 597 602 603 608 608 609 612 729 Sewer: Sanitary sewers (miles) 510 510 510 510 510 510 510 510 510 478 Source: Various City departments * ** Information not available Fiscal Year Effective, July 1, 2016, fire protection and emergency medical response services were transferred to the San Bernardino County Fire Protection District. 14.a Packet Pg. 434 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements 14.a Packet Pg. 435 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Operating Indicators by Function Last Ten Fiscal Years ______________________________________________________________________________ - 199 - Fiscal Year 2011 2012 2013 2014 2015 Police: Arrests 13,620 8,346 8,100 11,386 10,590 Parking citations issued 27,606 16,608 18,559 19,531 14,692 Traffic citations issued 18,773 9,467 11,177 6,842 4,338 Fire: Number of emergency calls 25,720 25,734 * * * Inspections 6,144 3,476 * * * Public Works/Public Services: Street resurfacing (lane miles) 23 7 * * * Parks and Recreation: Number of recreation classes 501 357 504 450 432 Number of facility rentals 268 247 260 235 220 Water: Total connections 43,338 43,411 43,582 43,764 44,582 Sewer: Total connections 62,933 62,956 63,309 62,714 63,377 Source: Various City departments * Information not available ** Effective, July 1, 2016, fire protection and emergency medical response services were transferred to the San Bernardino County Fire Protection District. 14.a Packet Pg. 436 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements City of San Bernardino Operating Indicators by Function (Continued) Last Ten Fiscal Years ______________________________________________________________________________ - 200 - Fiscal Year 2016 2017 2018 2019 2020 Police: Arrests 8,930 10,256 11,295 12,100 11,137 Parking citations issued 14,781 21,711 21,480 16,359 12,334 Traffic citations issued 3,062 3,848 3,108 9,055 9,276 Fire: Number of emergency calls * ** ** ** ** Inspections * ** ** ** ** Public Works/Public Services: Street resurfacing (lane miles) * * * * * Parks and Recreation: Number of recreation classes 525 494 514 509 63 Number of facility rentals 290 277 345 321 208 Water: Total connections 44,728 44,932 45,016 45,220 45,421 Sewer: Total connections 64,342 63,274 63,525 61,253 59,719 Source: Various City departments * Information not available ** Effective, July 1, 2016, fire protection and emergency medical response services were transferred to the San Bernardino County Fire Protection District. 14.a Packet Pg. 437 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements 14.a Packet Pg. 438 Attachment: Attachment 1 - FN. 2020 Comprehensive Annual Financial Report . Attachment 1 [Revision 1] (7027 : Audited Financial Statements FY 2019/20 Comprehensive Annual Financial Report (CAFR) & Annual Independent Financial Audit January 20, 2021 Presented by Sam Singery, Acting Deputy Finance Director 1 14.b Packet Pg. 439 Attachment: Attachment 2 - FN. PowerPoint Presentation. Attachment 2 (7027 : Audited Financial FY 2019/20 CAFR & Annual Financial Audit Topics for Discussion •Comprehensive Annual Financial Report (CAFR) •Annual Financial Audit by Independent CPA Firm 2 14.b Packet Pg. 440 Attachment: Attachment 2 - FN. PowerPoint Presentation. Attachment 2 (7027 : Audited Financial FY 2019/20 CAFR & Annual Financial Audit Governmental Accounting Overview •All funds fall into one of three broad categories: 3 Governmental Funds Proprietary Funds Fiduciary Funds Activities related to serving the public Activities with an objective to recover costs through user charges Financial resources held for others as trustee 14.b Packet Pg. 441 Attachment: Attachment 2 - FN. PowerPoint Presentation. Attachment 2 (7027 : Audited Financial FY 2019/20 CAFR & Annual Financial Audit Governmental Funds 4 General Fund Special Revenue Funds Capital Projects Funds Transactions for governmental services provided by the general operations of the City. Proceeds of specific revenue sources that are restricted for specific purposes (i.e., Gas Tax, Federal/State Grants, etc.) Financial resources for the acquisition or construction of major capital facilities that benefit citizens (i.e., parks, street construction, public improvements) Debt Service Funds Accumulation of resources for the payment of general long-term debt (principal and interest) 14.b Packet Pg. 442 Attachment: Attachment 2 - FN. PowerPoint Presentation. Attachment 2 (7027 : Audited Financial FY 2019/20 CAFR & Annual Financial Audit Proprietary Funds 5 Water/Sewer/ Sewer Collection Funds Integrated Waste Fund Internal Service Funds Transactions related to the services provided by the San Bernardino Municipal Water Department Transactions related primarily to continued maintenance of retired Waterman Landfill. Operations that provide services to City departments on a cost- reimbursement basis (i.e., General Liability, IT, Fleet, etc.) 14.b Packet Pg. 443 Attachment: Attachment 2 - FN. PowerPoint Presentation. Attachment 2 (7027 : Audited Financial FY 2019/20 CAFR & Annual Financial Audit Fiduciary Funds 6 Agency Funds Successor Agency to the San Bernardino EDA Resources held by the City in a trustee capacity for the benefit of others (i.e., developer or individual deposits) Transactions related former EDA. Revenues received from property taxes are used to pay the remaining enforceable obligations until all obligations are paid and all assets have been liquidated. 14.b Packet Pg. 444 Attachment: Attachment 2 - FN. PowerPoint Presentation. Attachment 2 (7027 : Audited Financial FY 2019/20 CAFR & Annual Financial Audit FY 2019/20 Audit •Independent audit conducted by Rogers, Anderson, Malody & Scott LLP (RAMS) •Unmodified (“clean”) audit opinion rendered •Most desirable outcome 7 14.b Packet Pg. 445 Attachment: Attachment 2 - FN. PowerPoint Presentation. Attachment 2 (7027 : Audited Financial FY 2019/20 CAFR & Annual Financial Audit FY 2019/20 CAFR •Comprehensive Annual Financial Report (CAFR) •Provides wide variety of important information intended to help the reader properly understand the financial statements •City has continually improved financial reporting processes and provided increased transparency •Three Components: •Introductory Section •Financial Section •Statistical Section 8 14.b Packet Pg. 446 Attachment: Attachment 2 - FN. PowerPoint Presentation. Attachment 2 (7027 : Audited Financial Financial Statement Review 9 14.b Packet Pg. 447 Attachment: Attachment 2 - FN. PowerPoint Presentation. Attachment 2 (7027 : Audited Financial FY 2019/20 CAFR & Annual Financial Audit Government-Wide Financial Statements •Long-Term Comprehensive View •All Assets, including Capital Assets (i.e. Land, Infrastructure, Equipment, etc.) •All Liabilities, including long-term liabilities (CalPERS Pension, Bonds Payable, Claims Payable, etc.) •Funds grouped into two categories: •Governmental activities •Business-type activities 10 14.b Packet Pg. 448 Attachment: Attachment 2 - FN. PowerPoint Presentation. Attachment 2 (7027 : Audited Financial FY 2019/20 CAFR & Annual Financial Audit FY 2019/20 Results – Government-Wide Financial Statements Governmental Activities Business-Type Activities Total Primary Government YE 2019 78,051,465$ 296,237,839$ 374,289,304$ YE 2020 49,310,732 308,341,835 357,652,567 Change (28,740,733)$ 12,103,996$ (16,636,737)$ % change -36.8% 4.1% -4.4% Changes in Net Position 11 14.b Packet Pg. 449 Attachment: Attachment 2 - FN. PowerPoint Presentation. Attachment 2 (7027 : Audited Financial FY 2019/20 CAFR & Annual Financial Audit Government-Wide Revenues and Expenses – FY 2019/20 vs FY 2018/19 12 $166,486,706 $171,006,354 $93,836,085 $89,205,488 $188,161,079 $199,747,087 $81,101,141 $77,101,492 - 50,000,000 100,000,000 150,000,000 200,000,000 250,000,000 Gov. Activities 2019 Gov. Activities 2020 Bus. Activities 2019 Bus. Activities 2020 Government-Wide Changes in Net Position Total Revenues Total Expenditures 14.b Packet Pg. 450 Attachment: Attachment 2 - FN. PowerPoint Presentation. Attachment 2 (7027 : Audited Financial FY 2019/20 CAFR & Annual Financial Audit Government-Wide Capital Assets – FY 2019/20 Governmental Activities Business-Type Activities Total Primary Government YE 2019 296,311,492$ 285,505,777$ 581,817,269$ YE 2020 289,969,123 291,987,188 581,956,311 Change (6,342,369)$ 6,481,411$ 139,042$ % change -2.1% 2.3% 0.0% Capital Assets, Net of Accumulated Depreciation 13 14.b Packet Pg. 451 Attachment: Attachment 2 - FN. PowerPoint Presentation. Attachment 2 (7027 : Audited Financial FY 2019/20 CAFR & Annual Financial Audit Government-Wide Net Pension Liability – FY 2019/20 Miscellaneous Plan Safety Plan Combined Total YE 2019 157,934,294$ 257,405,872$ 415,340,166$ YE 2020 168,143,581 275,241,375 443,384,956 Change 10,209,287$ 17,835,503$ 28,044,790$ % change 6.5% 6.9% 6.8% Change in Net Pension Liability 14 14.b Packet Pg. 452 Attachment: Attachment 2 - FN. PowerPoint Presentation. Attachment 2 (7027 : Audited Financial FY 2019/20 CAFR & Annual Financial Audit Fund Financial Statements •Short-Term Focus •Three categories of Fund Statements: •Governmental Funds •Proprietary Funds •Fiduciary Funds 15 14.b Packet Pg. 453 Attachment: Attachment 2 - FN. PowerPoint Presentation. Attachment 2 (7027 : Audited Financial FY 2019/20 CAFR & Annual Financial Audit FY 2019/20 Results – Governmental Funds General Fund Federal and State Grants Fund Other Governmental Funds Total Governmental Funds YE 2019 64,540,412$ 18,085,335$ 79,934,739$ 162,560,486$ YE 2020 67,720,155 17,613,511 81,984,001 167,317,667 Change 3,179,743$ (471,824)$ 2,049,262$ 4,757,181$ % change 4.9% -2.6% 2.6% 2.9% Changes in Fund Balance 16 14.b Packet Pg. 454 Attachment: Attachment 2 - FN. PowerPoint Presentation. Attachment 2 (7027 : Audited Financial FY 2019/20 CAFR & Annual Financial Audit General Fund Revenues and Expenditures – FY 2019/20 vs FY 2018/19 17 14.b Packet Pg. 455 Attachment: Attachment 2 - FN. PowerPoint Presentation. Attachment 2 (7027 : Audited Financial FY 2019/20 CAFR & Annual Financial Audit General Fund: Fund Balance by Category – FY 2019/20 18 14.b Packet Pg. 456 Attachment: Attachment 2 - FN. PowerPoint Presentation. Attachment 2 (7027 : Audited Financial FY 2019/20 CAFR & Annual Financial Audit General Fund Reserves – FY 2019/20 19 14.b Packet Pg. 457 Attachment: Attachment 2 - FN. PowerPoint Presentation. Attachment 2 (7027 : Audited Financial FY 2019/20 CAFR & Annual Financial Audit Recommended Action •Mayor and City Council receive and file the audited Comprehensive Annual Financial Report for FY 2019/20 20 14.b Packet Pg. 458 Attachment: Attachment 2 - FN. PowerPoint Presentation. Attachment 2 (7027 : Audited Financial Questions/Discussion 21 14.b Packet Pg. 459 Attachment: Attachment 2 - FN. PowerPoint Presentation. Attachment 2 (7027 : Audited Financial Page 1 Consent Calendar City of San Bernardino Request for Council Action Date: January 20, 2021 To: Honorable Mayor and City Council Members From: Robert D. Field, City Manager By: Jim Slobojan, Acting Finance Director Subject: Initiation of Proceedings to Form Proposed Community Facilities District No. 2021-1 (Ward 3) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California: 1. Adopt Resolution No. 2021-4 of the Mayor and City Council of the City of San Bernardino, California, declaring the intention to establish proposed Community Facilities District (CFD) No. 2021-1 (Ferree Street) of the City of San Bernardino; and 2. Adopt Resolution No. 2021-5 of the Mayor and City Council of the City of San Bernardino, California, declaring necessity to incur a bonded indebtedness of Proposed Community Facilities District (CFD) No. 2021-1 (Ferree Street) of the City of San Bernardino. Background The City has received a petition from ICO FUND VI, LLC, the owner and developer of APN No. 0281-161-48 (the “Property”), requesting the formation of the proposed CFD encompassing the Property to finance the following: (1) Acquisition, design, construction of local and regional traffic improvements, storm drain improvements, park, park improvements and open space, and sewer and water improvements (the “Facilities”); and (2) The incidental expenses proposed to be incurred are: (i) the cost of planning and designing the public facilities and the cost of environ mental evaluations thereof, (ii) all costs associated with the formation of the proposed community facilities district, the issuance of the bonds thereof, the determination of the amount of and collection of special taxes, the payment of special taxes, and costs otherwise incurred in order to carry out the authorized purposes of the proposed community facilities district, and (iii) any other expenses incidental to the construction, completion, and inspection of the public Facilities (the “Incidental Expenses”). 15 Packet Pg. 460 7028 Page 2 Discussion Approval of the resolutions described above is the first step to establish the proposed community facilities district for the Property. The resolutions: approve the boundaries of the proposed community facilities district; specify the Facilities to be financed; specify that special taxes will be levied on all parcels of taxable property in the proposed community facilities district to pay principal of and interest on the bonds of the district which will be issued to finance the Facilities, declare the necessity to incur bonded indebtedness; and schedule public hearings regarding the formation of the community facilities district and the necessity to incur bonded indebtedness. The final steps for the formation of the proposed c ommunity facilities district will occur at the Mayor and City Council meeting on March 3, 2021. The Mayor and City Council will conduct a public hearing on such day and following the public hearing may adopt resolutions to form the proposed CFD, determine the necessity to incur bonded indebtedness and call a special election of the qualified voters to approve the levy of special taxes and incur bonded indebtedness, conduct a special election and declare election results. 2020-2025 Key Strategic Targets and Goals This project is consistent with Key Target No 4: Ensure Development of a Well-Planned Balanced and Sustainable City. This project will contribute to ensure that the City is clean and attractive and provide infrastructure designed for long term eco nomic growth. Fiscal Impact There is no fiscal impact to the General Fund at this time. Should the Community Facilities District be formed, the individual property owners in the CFD will be responsible for annual payments of special taxes. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California: 1. Adopt Resolution No. 2021-4 of the Mayor and City Council of the City of San Bernardino, California, declaring the intention to establish proposed Community Facilities District (CFD) No. 2021-1 (Ferree Street) of the City of San Bernardino; and 2. Adopt Resolution No. 2021-5 of the Mayor and City Council of the City of San Bernardino, California, declaring necessity to incur a bonded indebtedness of Proposed Community Facilities District (CFD) No. 2021-1 (Ferree Street) of the City of San Bernardino. Attachments Attachment 1 Resolution No. 2021-4 15 Packet Pg. 461 7028 Page 3 Attachment 2 Exhibit A Attachment 3 Resolution No. 2021-5 Attachment 4 Exhibit A Attachment 5 Boundary Map of Community Facilities District 2021-1 Ward: 3 Synopsis of Previous Council Actions: N/A 15 Packet Pg. 462 -1- RESOLUTION NO. 2021-4 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, DECLARING INTENTION TO ESTABLISH PROPOSED COMMUNITY FACILITIES DISTRICT NO. 2021-1 (FERREE STREET) OF THE CITY OF SAN BERNARDINO WHEREAS, the City Council (the “City Council”) of the City of San Bernardino (the “City”) has received a written petition from ICO FUND VI, LLC, a Delaware limited liability company (the “Owner”), the owner of certain real property within the City of San Bernardino (the “City”) requesting that the City Council initiate proceedings for the formation of a community facilities district, pursuant to Chapter 2.5 (commencing with Section 53311) of Part 1 of Division 2 of Title 5 of the California Government Code, commonly known as the “Mello- Roos Community Facilities Act of 1982,” (the “Act”) for the purpose of financing the public facilities which are necessary to meet increased demands placed upon the City as a result of the development of said real property; and WHEREAS, the Owner is the owner of all of the property which is proposed to be included within the proposed community facilities district; and WHEREAS, the Act provides that the City Council may initiate proceedings to establish a community facilities district only if it has first considered and adopted local goals and policies concerning the use of community facilities districts; and WHEREAS, the City Council has been presented with its Local Goals and Policies for all Community Facilities Districts of the City of San Bernardino (the “Policies”) for consideration, and the proposed public facilities comply with the Policies; and WHEREAS, pursuant to Section 53320 of the Act, having received such a petition, the City Council is required to institute proceedings for the formation of the proposed community facilities district by the adoption of a resolution of intention pursuant to Section 53321 of the Act. BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. Findings. The above recitals are true and correct and are incorporated herein by this reference. SECTION 2. Proposed Community Facilities District. A community facilities district is proposed to be established under the provisions of the Act. The name proposed for the community facilities district is “Community Facilities District No. 2021-1 (Ferree Street) of the City of San Bernardino, County of San Bernardino, State of California” herein referred to as CFD No. 2021-1. SECTION 3. Description and Map of Boundaries. The boundaries of the proposed CFD No. 2021-1 are described and shown on the map entitled “Proposed Boundary Map Community 15.a Packet Pg. 463 Attachment: Resolution 2021-4 [Revision 1] (7028 : Initiation of Proceedings to Form Proposed Community Facilities District No. 2021-1 (Ward -2- Facilities District No. 2021-1 (Ferree Street) of the City of San Bernardino, County of San Bernardino, State of California,” which is on file with the City Clerk. Said map is approved and, pursuant to Section 3110 of the California Streets and Highways Code, the City Clerk shall, after conforming with the other requirements of Section 3111 of said Code, record the original of said map in her office, and not later than fifteen (15) days prior to the date of the public hearing set forth in Section 10 hereof shall file a copy of said map with the County Recorder of the County of San Bernardino. SECTION 4. Types of Facilities; Incidental Expenses. The proposed types of public facilities to be financed by the proposed CFD 2021-1 (the “Facilities”) include but are not limited to: (a) Acquisition, design, construction of local and regional traffic improvements, storm drain improvements, park, park improvements and open space, and sewer and water improvements; and (b) The incidental expenses proposed to be incurred are: (i) the cost of planning and designing the public facilities and the cost of environmental evaluations thereof, (ii) all costs associated with the formation of the proposed CFD, the issuance of the bonds thereof, the determination of the amount of and collection of special taxes, the payment of special taxes, and costs otherwise incurred in order to carry out the authorized purposes of the proposed CFD, and (iii) any other expenses incidental to the construction, completion, and inspection of the public Facilities (the “Incidental Expense”).] SECTION 5. Special Taxes. Except where funds are otherwise available, a special tax sufficient to finance the Facilities and related Incidental Expenses secured by the recordation of a continuing lien against all taxable or nonexempt property in CFD No. 2021-1, shall be annually levied within CFD No. 2021-1. Under no circumstances will Special Taxes levied in any fiscal year against any parcel used for private residential purposes be increased as consequence of delinquency or default by the owner of any other parcel or parcels within CFD No. 2021-1 by more than 10 percent (10%) above the amount that would have been levied in that fiscal year had there never been any such delinquencies or defaults. A parcel shall be considered “used for private residential purposes” not later than the date on which an occupancy permit or the equivalent for private residential use is issued and for such parcel. For further particulars as to the rate and method of apportionment of the Special Taxes to be levied on parcels of taxable property in CFD No. 2021-1 reference is made to the attached and incorporated Exhibit A (the “Rate and Method”) which sets forth in sufficient detail the rate and method of apportionment of the Special Taxes to allow each landowner or resident within CFD No. 2021-1 to clearly estimate the maximum amount that such person will have to pay. The conditions under which the obligation to pay Special Taxes may be prepaid and permanently satisfied are as set forth in the Rate and Method. 15.a Packet Pg. 464 Attachment: Resolution 2021-4 [Revision 1] (7028 : Initiation of Proceedings to Form Proposed Community Facilities District No. 2021-1 (Ward -3- Pursuant to Section 53340 of the Act, said Special Taxes shall be collected in t he same manner and at the same time as ordinary ad valorem property taxes; provided however, that CFD No. 2021-1 may collect Special Taxes at a different time or in a different manner if necessary to meet its financial obligations, and may covenant to foreclose and may actually foreclose on delinquent assessor’s parcels as permitted by the Act. Upon recordation of a notice of special tax lien pursuant to Section 3114.5 of the California Streets and Highways Code, a continuing lien to secure each levy of the Special Taxes shall attach to all non-exempt real property in CFD No. 2021-1, and that lien shall continue in force and effect until the special tax obligation is prepaid and permanently satisfied and the lien is canceled in accordance with law or until collection of the Special Taxes ceases. SECTION 6. Exempt Properties. Pursuant to Section 53340 of the Act, and except as provided in Section 53317.3 of the Act, properties of entities of the state, federal, and local governments shall be exempt from the levy of Special Taxes. SECTION 7. Necessity. The City Council finds that the Facilities described in Section 4 hereof are necessary to meet increased demands placed upon the City as a result of new development occurring within the boundaries of proposed CFD No. 2021-1. SECTION 8. Repayment of Funds Advanced or Work-in-Kind. Pursuant to Section 53314.9 of the Act, the City Council proposes to accept advances of funds or work -in-kind from private persons or private entities and to provide, by resolution, for the use of those funds or that work-in-kind for any authorized purpose, including but not limited to, paying any costs incurred by the City in creating proposed CFD No. 2021-1, and to enter into an agreement, by resolution, with the person or entity advancing the funds or work-in-kind to repay funds advanced, or to reimburse the person or entity for the value, or cost, whichever is less, of the work-in-kind, as determined by the City Council. SECTION 9. Prohibition of Owner Contracts. Pursuant to Section 53329.5 of the Act, the City Council finds that the public interest will not be served by allowing the owners of property within proposed CFD No. 2021-1 to enter into a contract in accordance with subdivision (a) of that section, and that such owners shall not be permitted to elect to perform the work and enter into a written contract with the City for the construction for the Facilities pursuant to said Section 53329.5. SECTION 10. Hearing. A public hearing on the formation of proposed CFD No. 2021 - 1 shall be held at 7:00 p.m. on March 3, 2021 in the Bing Wong Auditorium of the Norman F. Feldheym Public Library located at 555 W. 6th Street, San Bernardino, California or via teleconference as directed by the City due to COVID-19 social distancing guidelines. SECTION 11. Notice of Hearing. The City Clerk shall publish a notice of the time and place of said hearing as required by Section 53322 of the Act, and may also give notice of the time and place of said hearing by first-class mail to each registered voter and to each landowner within CFD No. 2021-1 as prescribed by Section 53322.4 of said Code. Said notice shall be published at least seven (7) days and mailed at least fifteen (15) days before the date of the hearing, and shall contain the information required by said Section 53322. 15.a Packet Pg. 465 Attachment: Resolution 2021-4 [Revision 1] (7028 : Initiation of Proceedings to Form Proposed Community Facilities District No. 2021-1 (Ward -4- SECTION 12. Report. The officers of the City who will be responsible for providing the proposed Facilities to be provided within and financed by proposed CFD No. 2021-1, if it is established, shall study proposed CFD No. 2021-1, and, at or before the time of said hearing, file a report or reports with the City Council containing a brief description of the Facilities by type which will in their opinion be required to adequately meet the needs of proposed CFD No. 2021- 1 and their estimate of the fair and reasonable cost of providing the Facilities and the related Incidental Expenses to be incurred in connection therewith. All such reports shall be made a part of the record of the hearing to be held pursuant to Section 10 hereof. SECTION 13. Description of Voting Procedures. The voting procedures to be followed shall be pursuant to Section 53326 of the Act and pursuant to the applicable provisions of the California Election Code. SECTION 14. Approval of Policies. The Policies are hereby approved as presented to the City Council at this meeting. SECTION 15. CEQA. The City Council finds this Resolution is not subject to the California Environmental Quality Act (“CEQA”) in that the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty, as in this case, that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. SECTION 16. Severability. If any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications, and to this end the provisions of this Resolution are declared to be severable. SECTION 17. Effective Date. This Resolution shall become effective immediately. APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this 20th day of January 2021. John Valdivia, Mayor City of San Bernardino Attest: Genoveva Rocha, CMC, City Clerk Approved as to form: Sonia R. Carvalho, City Attorney 15.a Packet Pg. 466 Attachment: Resolution 2021-4 [Revision 1] (7028 : Initiation of Proceedings to Form Proposed Community Facilities District No. 2021-1 (Ward -5- CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO ) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, City Clerk, hereby certify that the attached is a true copy of Resolution No. 2021-___, adopted at a regular meeting held on the 20th day of January 2021 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ REYNOSO _____ _____ _______ _______ CALVIN _____ _____ _______ _______ ALEXANDER _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ____ day of __________, 2021. ______________________________ Genoveva Rocha, CMC, City Clerk 15.a Packet Pg. 467 Attachment: Resolution 2021-4 [Revision 1] (7028 : Initiation of Proceedings to Form Proposed Community Facilities District No. 2021-1 (Ward A-1 EXHIBIT A RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES FOR COMMUNITY FACILITIES DISTRICT NO. 2021-1 (FERREE STREET) OF THE CITY OF SAN BERNARDINO A Special Tax (all capitalized terms not otherwise defined herein are defined in Section A, “Definitions”, below) shall be applicable to each Assessor’s Parcel of Taxable Property located within the boundaries of Community Facilities District No. 2021-1 (Ferree Street) of the City of San Bernardino ("CFD No. 2021-1"). The amount of Special Tax to be levied in each Fiscal Year, on an Assessor’s Parcel, shall be determined by the City Council of the City of San Bernardino, acting in its capacity as the legislative body of CFD No. 2021-1 by applying the appropriate Special Tax for Developed Property, Approved Property, Undeveloped Property, and Provisional Undeveloped Property that is not Exempt Property as set forth below. All of the real property, unless exempted by law or by the provisions hereof in Section F, shall be taxed for the purposes, to the extent and in the manner herein provided. A. DEFINITIONS The terms hereinafter set forth have the following meanings: "Acre” or “Acreage" means the land area of an Assessor's Parcel as shown on an Assessor's Parcel Map, or if the land area is not shown on an Assessor’s Parcel Map, the land area shown on the applicable final map, parcel map, condominium plan, or other recorded parcel map or instrument. The square footage of an Assessor’s Parcel is equal to the Acreage multiplied by 43,560. "Act" means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5 (commencing with Section 53311) of Part 1 of Division 2 of Title 5 of the Government Code of the State of California. "Administrative Expenses" means the following actual or reasonably estimated costs directly related to the administration of CFD No. 2021-1: the costs of computing the Special Taxes and preparing the Special Tax collection schedules (whether by the City or designee thereof or both); the costs of collecting the Special Taxes (whether by the City or otherwise); the costs of remitting Special Taxes A to the Trustee; the costs of the Trustee (including legal counsel) in the discharge of the duties required of it under the Indenture; the costs to the City, CFD No. 2021 -1 or any designee thereof of complying with arbitrage rebate requirements; the costs to the City, CFD No. 2021-1 or any designee thereof of complying with continuing disclosure requirements of the City, CFD No. 2021-1 and any major property owner associated with applicable federal and state securities laws and the Act; the costs associated with preparing Special Tax disclosure statements and responding to public inquiries regarding the Special Taxes; the costs of the City, CFD No. 2021-1 or any designee thereof related to an appeal of the Special Tax; the costs associated with the release of funds from an escrow account; and the City’s annual administration fees and third party expenses. Administration Expenses shall also include amounts estimated by the CFD Administrator or advanced by the City or CFD No. 2021 -1 for any other administrative purposes of CFD No. 2021-1, including attorney’s fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes. 15.b Packet Pg. 468 Attachment: Exhibit A to Resolution of Intention (7028 : Initiation of Proceedings to Form Proposed Community Facilities District No. 2021-1 A-2 "Approved Property" means all Assessor’s Parcels of Taxable Property: (i) that are included in a Final Map that was recorded prior to the January 1st preceding the Fiscal Year in which the Special Tax is being levied, and (ii) that have not been issued a building permit on or before June 1st preceding the Fiscal Year in which the Special Tax is being levied. "Assessor’s Parcel" means a lot or parcel of land designated on an Assessor’s Parcel Map with an assigned Assessor’s Parcel Number. "Assessor’s Parcel Map" means an official map of the Assessor of the County designating parcels by Assessor’s Parcel Number. "Assessor’s Parcel Number" means that number assigned to an Assessor’s Parcel by the County for purposes of identification. "Assigned Special Tax" means the Special Tax of that name described in Section D below. "Backup Special Tax" means the Special Tax of that name described in Section D below. "Bonds" means any obligation to repay a sum of money, including obligations in the form of bonds, certificates of participation, long-term leases, loans from government agencies, or loans from banks, other financial institutions, private businesses, or individuals, or long-term contracts, or any refunding thereof, to which Special Tax within CFD No. 2021-1 have been pledged. "Boundary Map" means a recorded map of the CFD which indicates the boundaries of the CFD. "Building Permit" means the first legal document issued by a local agency giving official permission for new construction. For purposes of this definition, “Building Permit” may or may not include expired or cancelled building permits, or any subsequent building permit document(s) authorizing new construction on an Assessor’s Parcel that are issued or changed by the City after the first original issuance, as determined by the CFD Administrator, provided that following such determination the Maximum Special Tax that may be levied on all Assessor’s Parcels of Taxable Property will be at least 1.1 times annual debt service on all outstanding Bonds plus the estimated annual Administrative Expenses. "Building Square Footage" or "BSF" means the square footage of assessable internal living space, exclusive of garages or other structures not used as living space, as determined by reference to the Building Permit for such Assessor’s Parcel. "Calendar Year" means the period commencing January 1 of any year and ending the following December 31. “CFD Administrator" means an official of the City, or designee thereof, responsible for determining the Special Tax Requirement, and providing for the levy and collection of the Special Taxes. 15.b Packet Pg. 469 Attachment: Exhibit A to Resolution of Intention (7028 : Initiation of Proceedings to Form Proposed Community Facilities District No. 2021-1 A-3 "CFD” or “CFD No. 2021-1" means Community Facilities District No. 2021-1 (Ferree Street) of the City of San Bernardino established by the City under the Act. “City” means the City of San Bernardino, State of California. "City Council" means the City Council of the City of San Bernardino, acting as the Legislative Body of CFD No. 2021-1, or its designee. “Condominium Plan" means a condominium plan pursuant to California Civil Code, Section 4200 et seq. "County" means the County of San Bernardino, State of California. "Developed Property" means all Assessor’s Parcels of Taxable Property that: (i) are included in a Final Map that was recorded prior to the January 1st preceding the Fiscal Year in which the Special Tax is being levied, and (ii) a Building Permit for new construction was issued on or before June 1st preceding the Fiscal Year in which the Special Tax is being levied. "Exempt Property" means all Assessor’s Parcels designated as being exempt from Special Taxes as provided for in Section F. "Final Map" means a subdivision of property by recordation of a final map, parcel map, or lot line adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) o or recordation of a Condominium Plan pursuant to California Civil Code Section 4200 et seq. that creates individual lots for which Building Permits may be issued without further subdivision. "Fiscal Year" means the period commencing on July 1st of any year and ending the following June 30th. “Indenture” means the indenture, fiscal agent agreement, resolution or other instrument pursuant to which Bonds are issued, as modified, amended and/or supplemented from time to time, and any instrument replacing or supplementing the same. “Land Use Category” means any of the categories listed in Table 1 of Section D. "Maximum Special Tax" means the maximum Special Tax, determined in accordance with Section D below, that can be levied by CFD No. 2021-1 in any Fiscal Year on any Assessor’s Parcel. “Multifamily Property” means all Assessor’s Parcels of Developed Property for which a Building Permit has been issued for the purpose of constructing a building or buildings comprised of attached Residential Units available for rental by the general public, not for sale to an end user, and under common management, as determined by the CFD Administrator. "Non-Residential Property" means all Assessor's Parcels of Developed Property for which a Building Permit(s) was issued for a non-residential use. The CFD Administrator shall make the determination if an Assessor’s Parcel is Non-Residential Property. 15.b Packet Pg. 470 Attachment: Exhibit A to Resolution of Intention (7028 : Initiation of Proceedings to Form Proposed Community Facilities District No. 2021-1 A-4 "Partial Prepayment Amount" means the amount required to prepay a portion of the Special Tax obligation for an Assessor’s Parcel, as described in Section G.2. "Prepayment Amount" means the amount required to prepay the Special Tax obligation in full for an Assessor’s Parcel, as described in Section G.1. “Proportionately” means for Taxable Property for Special Tax that is (i) Developed Property, that the ratio of the actual Special Tax levy to the Special Tax is the same for all Assessor’s Parcels of Developed Property, (ii) Approved Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is the same for all Assessor’s Parcels of Approved Property, and (iii) Undeveloped Property or Provisional Undeveloped Property, that the ratio of the actual Special Tax levy per Acre to the Maximum Special Tax per Acre is the same for all Assessor’s Parcels of Undeveloped Property or Provisional Undeveloped Property. "Provisional Undeveloped Property" means all Assessor’s Parcels of Taxable Property that would otherwise be classified as Exempt Property pursuant to the provisions of Section F, but cannot be classified as Exempt Property because to do so would be reduce the Acreage of all Taxable Property below the required minimum Acreage set forth in Section F. "Residential Property" means all Assessor’s Parcels of Developed Property for which a Building Permit has been issued for purposes of constructing one or more Residential Units. “Residential Unit” or "RU" means a residential unit that is used or intended to be used as a domicile by one or more persons, as determined by the CFD Administrator. “Single Family Residential Property” means all Assessor’s Parcels of Residential Property other than Multifamily Property on an Assessor’s Parcel. "Special Tax" or “Special Taxes” means any of the special taxes authorized to be levied within CFD No. 2021-1 pursuant to the Act to fund the Special Tax Requirement. "Special Tax Requirement " means the amount required in any Fiscal Year to pay: (i) the debt service or the periodic costs on all outstanding Bonds due in the Calendar Year that commences in such Fiscal Year, (ii) Administrative Expenses, (iii) the costs associated with the release of funds from an escrow account, (iv) any amount required to establish or replenish any reserve funds established under the Indenture in association with the Bonds to the extent that replenishment has not been included in the computation of the Special Tax Requirement in a previous Fiscal Year, (v) to cure any delinquencies in the amount of principal or interest on the Bonds that occurred in a previous Fiscal Year, and (vi) the collection or accumulation of funds for the acquisition or construction of facilities authorized by CFD No. 2021-1 provided that the inclusion of such amount does not cause an increase in the levy of Special Tax on Undeveloped Property as set forth in Step Three of Section E., less (vii) any amounts available to pay debt service or other periodic costs on the Bonds pursuant to the Indenture. "Taxable Property" means all Assessor’s Parcels within CFD No. 2021-1, which are not Exempt Property. “Taxable Unit” means either a Residential Unit or an Acre. 15.b Packet Pg. 471 Attachment: Exhibit A to Resolution of Intention (7028 : Initiation of Proceedings to Form Proposed Community Facilities District No. 2021-1 A-5 "Tract(s)" means an area of land within a subdivision identified by a particular tract number on a Final Map approved for the subdivision. “Trustee” means the trustee, fiscal agent, or paying agent under the Indenture. "Undeveloped Property" means all Assessor’s Parcels of Taxable Property which are not Developed Property, Approved Property, Provisional Undeveloped Property. B. SPECIAL TAX Commencing Fiscal Year 2021-2022 and for each subsequent Fiscal Year, the City Council shall levy Special Taxes on all Taxable Property, up to the applicable Maximum Special Tax to fund the Special Tax Requirement. C. ASSIGNMENT TO LAND USE CATEGORY FOR SPECIAL TAX Each Fiscal Year, beginning with Fiscal Year 2021-2022, each Assessor’s Parcel within CFD No. 2021-1 shall be classified as Taxable Property or Exempt Property. In addition, each Assessor’s Parcel of Taxable Property shall be further classified as Develop ed Property, Approved Property, Undeveloped Property or Provisional Undeveloped Property. Assessor’s Parcels of Developed Property shall further be classified as Residential Property or Non-Residential Property. Each Assessor’s Parcel of Residential Property shall further be classified as a Single Family Residential Property or Multifamily Property. Each Assessor’s Parcel of Single Family Residential Property shall be further assigned to a Land Use Category based on its Building Square Footage. In the event that there are parent Assessor’s Parcel(s) for which one or more Building Permits have been issued and the County has not yet assigned final Assessor’s Parcel Number(s) to the lots on which the Residential Unit(s) have been or will be built (in accordance with the Final Map or Condominium Plan) on such parent Assessor’s Parcel, the amount of the Special Tax on such parent Assessor’s Parcel shall be determined as follows: (1) the CFD Administrator shall first determine an amount of the Maximum Special Tax levy for such Assessor’s Parcel, based on the classification of such Assessor’s Parcel as Undeveloped Property; (2) the amount of the Special Tax for the Residential Units on such Assessor’s Parcel for which Building Permits have been issued shall be determined based on the Developed Property Special Tax rates and such amounts shall be levied as Developed Property in accordance with Step 1 and, if applicable, Step 4 of Section E below; and (3) the amount of the Special Tax levy on the Taxable Property in such Assessor’s Parcel not subject to the Special Tax levy in clause (2) shall be equal to: (A) the percentage of the Maximum Special Tax rate levied on Undeveloped Property pursuant to Step 3 of Section E below, multiplied by the total of the amount determined in clause (1), less (B) the amount determined in clause (2). 15.b Packet Pg. 472 Attachment: Exhibit A to Resolution of Intention (7028 : Initiation of Proceedings to Form Proposed Community Facilities District No. 2021-1 A-6 D. MAXIMUM SPECIAL TAX 1. Developed Property The Maximum Special Tax for each Assessor’s Parcel of Single Family Residential Property in any Fiscal Year shall be the greater of (i) the Assigned Special Tax or (ii) the Backup Special Tax. The Maximum Special Tax for each Assessor’s Parcel of Non -Residential Property and Multifamily Property shall be the applicable Assigned Special Tax described in Table 1 of Section D. a. Assigned Special Tax Each Fiscal Year, each Assessor’s Parcel of Single Family Residential Property, Multifamily Property or Non-Residential Property shall be subject to an Assigned Special Tax. The Assigned Special Tax applicable to an Assessor's Parcel of Developed Property for Fiscal Year 2021-2022 shall be determined pursuant to Table 1 below. TABLE 1 ASSIGNED SPECIAL TAX FOR DEVELOPED PROPERTY FISCAL YEAR 2021-2022 Land Use Category Taxable Unit Building Square Footage Assigned Special Tax Per Taxable Unit 1. Single Family Residential Property RU Less than 1,850 sq. ft $2,266 2. Single Family Residential Property RU 1,850 sq. ft to 2,000 sq. ft $2,366 3. Single Family Residential Property RU Greater than 2,000 sq. ft $2,433 4. Multifamily Property Acre N/A $39,394 5. Non-Residential Property Acre N/A $39,394 b. Multiple Land Use Categories In some instances an Assessor’s Parcel of Developed Property may contain more than one Land Use Type. The Maximum Special Tax levied on an Assessor’s Parcel shall be the sum of the Maximum Special Tax for each Taxable Unit for all Land Use Categories located on the Assessor’s Parcel. The CFD Administrator’s allocation to each type of property shall be final. 15.b Packet Pg. 473 Attachment: Exhibit A to Resolution of Intention (7028 : Initiation of Proceedings to Form Proposed Community Facilities District No. 2021-1 A-7 c. Backup Special Tax The Backup Special Tax for an Assessor’s Parcel within a Final Map classified as Single Family Residential Property shall be calculated according to the following formula. B = (U x A) / L The terms above have the following meanings: B = Backup Special Tax per Assessor’s Parcel classified as Single Family Residential Property within the Final Map. U = Maximum Special Tax per Acre of Undeveloped Property per Section D.3 below. A = Acreage of Single Family Residential Property that exists or is expected to exist in such Final Map at the time of calculation, as determined by the Administrator. L = Number of Assessor’s Parcels of Single Family Residential Property expected to exist after build out in such Final Map at the time of calculation, as determined by the Administrator. In the event any portion of the Final Map is changed or modified, the Backup Special Tax for all Assessor’s Parcels within such changed or modified area shall be $39,394 per Acre. Notwithstanding the foregoing, the Backup Special Tax for an Assessor’s Parcel of Developer Property for which a certificate of occupancy has been granted may not be revised. In the event any superseding Final Map is recorded as a Final Map within the boundaries of the CFD, the Backup Special Tax for all Assessor’s Parcels within such Final Map shall be $39,394 per Acre. The Backup Special Tax shall not apply to Multifamily Residential Propert y or Non- Residential Property. 2. Approved Property The Maximum Special Tax for each Assessor’s Parcel of Approved Property expected to be classified as Single Family Property shall be the Backup Special Tax computed pursuant to Section D.1.c above. The Maximum Special Tax for each Assessor’s Parcel of Approved Property expected to be classified as Multifamily Residential Property or Non-Residential Property shall be $39,394 per Acre. 3. Undeveloped Property and Provisional Undeveloped Property The Maximum Special Tax for each Assessor’s Parcel of Undeveloped Property and Provisional Undeveloped Property shall be $39,394 per Acre. 15.b Packet Pg. 474 Attachment: Exhibit A to Resolution of Intention (7028 : Initiation of Proceedings to Form Proposed Community Facilities District No. 2021-1 A-8 E. METHOD OF APPORTIONMENT OF THE SPECIAL TAX Commencing Fiscal Year 2021-2022 and for each subsequent Fiscal Year, the City Council shall levy Special Taxes on all Taxable Property in accordance with the following steps: Step One: The Special Tax shall be levied Proportionately on each Assessor’s Parcel of Developed Property at up to 100% of the applicable Assigned Special Tax rates in Table 1 to satisfy the Special Tax Requirement. Step Two: If additional moneys are needed to satisfy the Special Tax Requirement after the first step has been completed, the Special Tax shall be levied Proportionately on each Assessor’s Parcel of Approved Property at up to 100% of the Maximum Special Tax applicable to each such Assessor’s Parcel as needed to satisfy the Special Tax Requirement. Step Three: If additional moneys are needed to satisfy the Special Tax Requirement after the first two steps have been completed, the Annual Special Tax shall be levied Proportionately on each Assessor’s Parcel of Undeveloped Property up to 100% of the Maximum Special Tax applicable to each such Assessor’s Parcel as needed to satisfy the Special Tax Requirement. Step Four: If additional moneys are needed to satisfy the Special Tax Requirement after the first three steps have been completed, then the Special Tax on each Assessor's Parcel of Developed Property whose Maximum Special Tax is the Backup Special Tax shall be increased in equal percentages from the Assigned Special Tax up to 100% of the Backup Special Tax as needed to satisfy the Special Tax Requirement. Step Five: If additional moneys are needed to satisfy the Special Tax Requirement after the first four steps have been completed, the Special Tax shall be levied Proportionately on each Assessor’s Parcel of Provisional Undeveloped Property up to 100% of the Maximum Special Tax applicable to each such Assessor’s Parcel as needed to satisfy the Special Tax Requirement. Notwithstanding the above, under no circumstances will the Special Taxes levied in any Fiscal Year against any Assessor’s Parcel of Residential Property as a result of a delinquency in the payment of the Special Tax applicable to any other Assessor’s Parcel be increased by more than ten percent (10%) above the amount that would have been levied in that Fiscal Year had there never been any such delinquency or default. F. EXEMPTIONS The City shall classify as Exempt Property, in the chronological order in which the property becomes exempt, (i) Assessor’s Parcels which are owned by, irrevocably offered for dedication, encumbered by or restricted in use by the State of California, Federal or other local governments, including school districts, (ii) Assessor’s Parcels which are used as places of worship and are exempt from ad valorem property taxes because they are owned by a religious organization, (iii) Assessor’s Parcels which are owned by, irrevocably offered for dedication, encumbered by or 15.b Packet Pg. 475 Attachment: Exhibit A to Resolution of Intention (7028 : Initiation of Proceedings to Form Proposed Community Facilities District No. 2021-1 A-9 restricted in use by a homeowners' association, (iv) Assessor’s Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement, (v) Assessor’s Parcels which are privately owned and are encumbered by or restricted solely for public uses, or (vi) Assessor’s Parcels restricted to other types of public uses determined by the City Council, provided that no such classification would redu ce the sum of all Taxable Property to less than 6.38 Acres. Notwithstanding the above, the City Council shall not classify an Assessor’s Parcel as Exempt Property if such classification would reduce the sum of all Taxable Property to less than 6.38 Acres. Assessor's Parcels which cannot be classified as Exempt Property because such classification would reduce the Acreage of all Taxable Property to less than 6.38 Acres will be classified as Provisional Undeveloped Property, and will be subject to Special Tax pursuant to Step Five in Section E. G. PREPAYMENT OF SPECIAL TAX The following additional definitions apply to this Section G: “CFD Public Facilities” means $$2,558,800 expressed in 2021 dollars, which shall increase by the Construction Inflation Index on July 1, 2022, and on each July 1 thereafter, or such lower amount (i) determined by the City Council as sufficient to provide the public facilities under the authorized bonding program for CFD No. 2021-1, or (ii) determined by the City Council concurrently with a covenant that it will not issue any more Bonds to be supported by Special Tax levied under this Rate and Method of Apportionment. “Construction Fund” means an account specifically identified in the Indenture or functionally equivalent to hold funds, which are currently available for expenditure to acquire or construct public facilities eligible under CFD No. 2021-1. “Construction Inflation Index” means the annual percentage change in the Engineering News- Record Building Cost Index for the city of Los Angeles, measured as of the Calendar Year which ends in the previous Fiscal Year. In the event this index ceases to be published, the Construction Inflation Index shall be another index as determined by the City that is reasonably comparable to the Engineering News-Record Building Cost Index for the City of Los Angeles. “Future Facilities Costs” means the CFD Public Facilities minus public facility costs available to be funded, or that were funded, through existing construction or escrow account s or funded by the Outstanding Bonds or Special Taxes, and minus public facility costs funded by interest earnings on the Construction Fund actually earned prior to the date of prepayment. “Outstanding Bonds” means all previously issued Bonds issued and secured by the levy of Special Tax which will remain outstanding after the first interest and/or principal payment date following the current Fiscal Year, excluding Bonds to be redeemed at a later date with the proceeds of prior prepayments of Special Tax. 15.b Packet Pg. 476 Attachment: Exhibit A to Resolution of Intention (7028 : Initiation of Proceedings to Form Proposed Community Facilities District No. 2021-1 A-10 1. Prepayment in Full The Maximum Special Tax obligation may be prepaid and permanently satisfied for (i) Assessor’s Parcels of Developed Property, (ii) Assessor’s Parcels of Approved Property or Undeveloped Property for which a Building Permit has been issued, (iii) Approved or Undeveloped Property for which a Building Permit has not been issued, and (iv) Assessor’s Parcels of Provisional Undeveloped Property. The Maximum Special Tax obligation applicable to an Assessor’s Parcel may be fully prepaid and the obligation to pay the Special Tax for such Assessor’s Parcel permanently satisfied as described herein; provided that a prepayment may be made only if there are no delinquent Special Taxes with respect to such Assessor’s Parcel at the time of prepayment. An owner of an Assessor’s Parcel intending to prepay the Maximum Special Tax obligation for such Assessor’s Parcel shall provide the CFD Administrator with written notice of intent to prepay, and within 5 business days of receipt of such notice, the CFD Administrator shall notify such owner of the amount of the non-refundable deposit determined to cover the cost to be incurred by the CFD in calculating the Prepayment Amount (as defined below) for the Assessor’s Parcel. Within 15 days of receipt of such non-refundable deposit, the CFD Administrator shall notify such owner of the Prepayment Amount for the Assessor’s Parcel. Prepayment must be made not less than 60 days prior to the redemption date for any Bon ds to be redeemed with the proceeds of such prepaid Special Taxes. The Prepayment Amount shall be calculated as follows (some capitalized terms are defined below): Bond Redemption Amount plus Redemption Premium plus Future Facilities Amount plus Defeasance Amount plus Administrative Fees and Expenses less Reserve Fund Credit Equals: Prepayment Amount The Prepayment Amount shall be determined as of the proposed prepayment date as follows: 1. Confirm that no Special Tax delinquencies apply to such Assessor’s Parcel. 2. For an Assessor’s Parcel of Developed Property, compute the Maximum Special Tax for the Assessor’s Parcel. For an Assessor’s Parcel of Approved Property or Undeveloped Property for which a Building Permit has been issued, compute the Maximum Special Tax for the Assessor’s Parcel as though it was already designated as Developed Property, based upon the Building Permit which has been issued for the Assessor’s Parcel. For an Assessor’s Parcel of Approved Property or Undeveloped Property for which a Building Permit has not been issued, or Provisional Undeveloped Property to be prepaid, compute the Maximum Special Tax for the Assessor’s Parcel. 3. Divide the Maximum Special Tax derived pursuant to paragraph 2 by the total amount of Special Taxes that could be levied the Maximum Special Tax assuming build out of all Assessor’s Parcels of Taxable Property based on the applicable Maximum Special Tax for 15.b Packet Pg. 477 Attachment: Exhibit A to Resolution of Intention (7028 : Initiation of Proceedings to Form Proposed Community Facilities District No. 2021-1 A-11 Assessor’s Parcels of Developed Property not including any Assessor’s Parcels for which the Special Tax obligation has been previously prepaid. 4. Multiply the quotient derived pursuant to paragraph 3 by the principal amount of the Outstanding Bonds to determine the amount of Outstanding Bonds to be redeemed with the Prepayment Amount (the “Bond Redemption Amount”). 5. Multiply the Bond Redemption Amount by the applicable redemption premium, if any, on the Outstanding Bonds to be redeemed (the “Redemption Premium”). 6. Determine the Future Facilities Costs. 7. Multiply the quotient derived pursuant to paragraph 3 by the amount determined pursuant to paragraph 6 to determine the amount of Future Facilities Costs for the Assessor’s Parcel (the “Future Facilities Amount”). 8. Determine the amount needed to pay interest on the Bond Redemption Amount from the first bond interest and/or principal payment date following the current Fiscal Year until the earliest redemption date for the Outstanding Bonds on which Bonds can be redeemed from Special Tax prepayments. 9. Determine the Special Taxes levied on the Assessor’s Parcel in the current Fiscal Year which have not yet been paid. 10. Determine the amount the CFD Administrator reasonably expects to derive from the investment of the Bond Redemption Amount and the Redemption Premium from the date of prepayment until the redemption date for the Outstanding Bonds to be redeemed with the Prepayment Amount. 11. Add the amounts derived pursuant to paragraphs 8 and 9 and subtract the amount derived pursuant to paragraph 10 (the “Defeasance Amount”). 12. Verify the administrative fees and expenses of the CFD, the cost to invest the Prepayment Amount, the cost of redeeming the Outstanding Bonds, and the cost of recording notices to evidence the prepayment of the Maximum Special Tax obligation for the Assessor’s Parcel and the redemption of Outstanding Bonds (the “Administrative Fees and Expenses”). 13. The reserve fund credit (the “Reserve Fund Credit”) shall equal the lesser of: (a) the expected reduction in the reserve requirement (as defined in the Indenture), if any, associated with the redemption of Outstanding Bonds as a result of the prepayment, or (b) the amount derived by subtracting the new reserve requirement (as defined in the Indenture) in effect after the redemption of Outstanding Bonds as a result of the prepayment from the balance in the reserve fund on the prepayment date, but in no event shall such amount be less than zero. 14. The Prepayment Amount is equal to the sum of the Bond Redemption Amount, the Redemption Premium, the Future Facilities Amount, the Defeasance Amount and the Administrative Fees and Expenses, less the Reserve Fund Credit. 15.b Packet Pg. 478 Attachment: Exhibit A to Resolution of Intention (7028 : Initiation of Proceedings to Form Proposed Community Facilities District No. 2021-1 A-12 15. From the Prepayment Amount, the Bond Redemption Amount, the Redemption Premium, and Defeasance Amount shall be deposited into the appropriate fund as established under the Indenture and be used to redeem Outstanding Bonds or make debt service payments. The Future Facilities Amount shall be deposited into the Construction Fund. The Administrative Fees and Expenses shall be retained by the CFD. The Prepayment Amount may be sufficient to redeem other than a $5,000 increment of Bonds. In such event, the increment above $5,000 or an integral multiple thereof will be retained in the appropriate fund established under the Indenture to be used with the next redemption from other Special Tax prepayments of Outstanding Bonds or to make debt service payments. As a result of the payment of the current Fiscal Year’s Special Tax levy as determined pursuant to paragraph 9 above, the CFD Administrator shall remove the current Fiscal Year’s Special Tax levy for the Assessor’s Parcel from the County tax roll. With respect to any Assessor’s Parcel for which the Maximum Special Tax obligation is prepaid, the City Council shall cause a suitable notice to be recorded in compliance with the Act, to indicate the prepayment of Maximum Special Tax obligation and the release of the Special Tax lien for the Assessor’s Parcel, and the obligation to pay the Special Tax for such Assessor’s Parcel shall cease. Notwithstanding the foregoing, no Special Tax prepayment shall be allowed unless the amount of Maximum Special Tax that may be levied on all Assessor’s Parcels of Taxable Property after the proposed prepayment will be at least 1.1 times maximum annual debt service on the Bonds that will remain outstanding after the prepayment plus the estimated annual Administrative Expenses. Tenders of Bonds in prepayment of the Maximum Special Tax obligation may be accepted upon the terms and conditions established by the City Council pursuant to the Act. However, the use of Bond tenders shall only be allowed on a case-by-case basis as specifically approved by the City Council. 2. Prepayment in Part The Maximum Special Tax obligation for an Assessor’s Parcel of Developed Property, Approved Property, Undeveloped Property or Provisional Undeveloped Property may be partially prepaid. For purposes of determining the partial prepayment amount, the provisions of Section G.1 shall be modified as provided by the following formula: PP = ((PE –A) x F) +A These terms have the following meaning: PP = Partial Prepayment Amount PE = the Prepayment Amount calculated according to Section G.1 F = the percent by which the owner of the Assessor’s Parcel(s) is partially prepaying the Maximum Special Tax obligation A = the Administrative Fees and Expenses determined pursuant to Section G.1 The owner of an Assessor’s Parcel who desires to partially prepay the Maximum Special Tax obligation for the Assessor’s Parcel shall notify the CFD Administrator of (i) such owner’s intent 15.b Packet Pg. 479 Attachment: Exhibit A to Resolution of Intention (7028 : Initiation of Proceedings to Form Proposed Community Facilities District No. 2021-1 A-13 to partially prepay the Maximum Special Tax obligation, (ii) the percentage of the Maximum Special Tax obligation such owner wishes to prepay, and (iii) the company or agency that will be acting as the escrow agent, if any. Within 5 days of receipt of such notice, the CFD Administrator shall notify such property owner of the amount of the non-refundable deposit determined to cover the cost to be incurred by the CFD in calculating the amount of a partial prepayment. Within 15 business days of receipt of such non-refundable deposit, the CFD Administrator shall notify such owner of the amount of the Partial Prepayment Amount for the Assessor’s Parcel. A Partial Prepayment Amount must be made not less than 60 days prior to the redemption date for the Outstanding Bonds to be redeemed with the proceeds of the Partial Prepayment Amount. With respect to any Assessor’s Parcel for which the Maximum Special Tax obligation is partially prepaid, the CFD Administrator shall (i) distribute the Partial Prepayment Amount as provided in Paragraph 15 of Section G.1, and (ii) indicate in the records of the CFD that there has been a Partial Prepayment Amount for the Assessor’s Parcel and that a portion of the Special Tax obligation equal to the remaining percentage (1.00 - F) of Special Tax obligation will continue on the Assessor’s Parcel pursuant to Section E. H. TERMINATION OF SPECIAL TAX For each Fiscal Year that any Bonds are outstanding the Special Tax shall be levied on all Assessor’s Parcels subject to the Special Tax. The Special Tax shall cease not later than the 2061-2062 Fiscal Year, however, Special Tax will cease to be levied in an earlier Fiscal Year if the CFD Administrator has determined (i) that all the required interest and principal payments on the CFD No. 2021-1 Bonds have been paid; (ii) all authorized facilities of CFD No. 2021-1 have been acquired and all reimbursements to the developer have been paid, (iii) no delinquent Special Tax remain uncollected and (iv) all other obligations of CFD No. 2021-1 have been satisfied. I. MANNER OF COLLECTION The Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided, however, that CFD No. 2021-1 may collect Special Tax at a different time or in a different manner if necessary to meet its financial obligations, and may covenant to foreclose and may actually foreclose on delinquent Assessor’s Parcels as permitted by the Act. J. APPEALS OF SPECIAL TAXES Any taxpayer may file a written appeal of the Special Taxes on his/her Assessor’s Parcel(s) with the CFD Administrator, provided that the appellant is current in his/her payments of Special Taxes. During pendency of an appeal, all Special Taxes previously levied must be paid on or before the payment date established when the levy was made. The appeal must specify the reasons why the appellant claims the Special Tax is in error. The CFD Admini strator shall review the appeal, meet with the appellant if the CFD Administrator deems necessary, and advise the appellant of its determination. If the CFD Administrator agrees with the appellant, the CFD 15.b Packet Pg. 480 Attachment: Exhibit A to Resolution of Intention (7028 : Initiation of Proceedings to Form Proposed Community Facilities District No. 2021-1 A-14 Administrator shall grant a credit to eliminate or reduce future Special Taxes on the appellant’s Assessor’s Parcel(s). No refunds of previously paid Special Taxes shall be made. The CFD Administrator shall interpret this Rate and Method of Apportionment and make determinations relative to the annual levy and administration of the Special Taxes and any taxpayer who appeals, as herein specified. 15.b Packet Pg. 481 Attachment: Exhibit A to Resolution of Intention (7028 : Initiation of Proceedings to Form Proposed Community Facilities District No. 2021-1 -1- RESOLUTION NO. 2021-5 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA DECLARING NECESSITY TO INCUR A BONDED INDEBTEDNESS OF PROPOSED COMMUNITY FACILITIES DISTRICT NO. 2021-1 (FERREE STREET) OF THE CITY OF SAN BERNARDINO WHEREAS, pursuant to Section 53321 of the California Government Code, the City Council (the “City Council”) of the City of San Bernardino (the “City”) has adopted a resolution (the “Resolution of Intention”) declaring its intention to establish proposed Community Facilities District No. 2021-1 (Ferree Street) of the City of San Bernardino, County of Riverside, State of California (“CFD No. 2021-1”), for the purpose of providing and financing certain public facilities described in Exhibit A attached hereto and incorporated herein by this r eference (the “Facilities”) which are necessary to meet increased demands placed upon the City as a result of development which will occur within CFD No. 2021-1; and WHEREAS, the City Council has determined that it is necessary for proposed CFD No. 2021-1 to incur a bonded indebtedness for the purpose of providing and financing such Facilities; and WHEREAS, it is the intention of this City Council to finance the acquisition or construction of all or a portion of such Facilities through the levy of special taxes on taxable property within CFD No. 2021-1 and the issuance of bonds of CFD No. 2021-1, such bonds to be secured by such special taxes to be levied on taxable property within CFD No. 2021-1, all as authorized pursuant to the Act. BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. Recitals. The above recitals are true and correct and are incorporated herein by this reference. SECTION 2. Declaration of Convenience and Necessity. This City Council declares that the public convenience and necessity requires that a bonded indebtedness be incurred by CFD No. 2021-1 to contribute to the financing of all or a portion of the Facilities. SECTION 3. Purpose for Proposed Indebtedness. The purpose for the proposed debt of CFD No. 2021-1 is to contribute to the financing of the acquisition or construction of the Facilities. SECTION 4. Bond Authorization. The amount of the bonded indebtedness of CFD No. 2021-1 may include all costs and estimated costs incidental to, or connected with, the accomplishment of the purpose for which the indebtedness is proposed to be incurred as authorized pursuant to the Act. The amount of the indebtedness proposed to be authorized for CFD No. 2021-1 is $4,000,000. 15.c Packet Pg. 482 Attachment: Resolution 2021-5 (7028 : Initiation of Proceedings to Form Proposed Community Facilities District No. 2021-1 (Ward 3)) -2- SECTION 5. Hearing. A public hearing on the proposed bonded indebtedness for CFD No. 2021-1 shall be held at 7:00 p.m. on March 3, 2021, in the Bing Wong Auditorium of the Norman F. Feldheym Public Library at 555 W. 6th Street, San Bernardino, California or via teleconference as directed by the City due to COVID-19 social distancing guidelines. Said hearing shall be conducted concurrently with the hearing on the formation of CFD No. 2021-1. SECTION 6. Notice. The City Clerk shall publish a notice of the time and place of said hearing pursuant to Section 53346 of the Act and may also give notice of the time and place of said hearing by first-class mail to each registered voter and to each landowner within CFD No. 2021-1. SECTION 7. CEQA. The City Council finds this Resolution is not subject to the California Environmental Quality Act (“CEQA”) in that the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty, as in this case, that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. SECTION 8. Severability. If any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications, and to this end the provisions of this Resolution are declared to be severable. SECTION 9. Effective Date. This Resolution shall become effective immediately. APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this 20th day of January 2021. ____________________________________ John Valdivia, Mayor City of San Bernardino Attest: __________________________________ Genoveva Rocha, CMC, City Clerk Approved as to form: __________________________________ Sonia R. Carvalho, City Attorney 15.c Packet Pg. 483 Attachment: Resolution 2021-5 (7028 : Initiation of Proceedings to Form Proposed Community Facilities District No. 2021-1 (Ward 3)) -3- CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO ) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, City Clerk, hereby certify that the attached is a true copy of Resolution No. 2021-___, adopted at a regular meeting held on the 20th day of January 2021 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ REYNOSO _____ _____ _______ _______ CALVIN _____ _____ _______ _______ ALEXANDER _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ____ day of __________, 2021. ______________________________ Genoveva Rocha, CMC, City Clerk 15.c Packet Pg. 484 Attachment: Resolution 2021-5 (7028 : Initiation of Proceedings to Form Proposed Community Facilities District No. 2021-1 (Ward 3)) A-1 EXHIBIT A FACILITIES The proposed types of public facilities to be financed by the proposed CFD No. 2021-1 include but are not limited to: (a) Acquisition, design, construction of local and regional traffic improvements, storm drain improvements, park, park improvements and open space, and sewer and water improvements; and (b) The incidental expenses which will be incurred are: (i) the cost of planning and designing the public facilities and the cost of environmental evaluations thereof, (ii) all costs associated with the formation of the proposed community facilities district, the issuance of the bonds thereof, the determination of the amount of and collection of special taxes, the payment of special taxes, and costs otherwise incurred in order to carry out the authorized purposes of the community facilities district, and (iii) any other expenses incidental to the construction, completion, and inspection of the public facilities. 15.d Packet Pg. 485 Attachment: Exhibit A to Resolution Declaring Necessity (7028 : Initiation of Proceedings to Form Proposed Community Facilities District No. 15.ePacket Pg. 486Attachment: Boundary Map of Community Facilities District 2021-1 (Ferree Street) (7028 : Initiation of Page 1 Consent Calendar City of San Bernardino Request for Council Action Date: January 20, 2021 To: Honorable Mayor and City Council Members From: Robert D. Field, City Manager By: Jim Slobojan, Acting Finance Director Subject: CFD 2018-1 Annexation 3 (Ward 3) Recommendation Adopt Resolution No. 2021-6 of the Mayor and City Council of the City of San Bernardino, California, acting as the legislative body of Community Facilities District No. 2018-1 of the City of San Bernardino (Safety Services), declaring its intention to consider annexing territory to Community Facilities District No. 2018-1 of the City of San Bernardino (Safety Services). Background On September 19, 2018, the Mayor and City Council approved Resolution No. 2018 - 264 establishing Community Facilities District No. 2018-1 (Safety Services) of the City of San Bernardino (the "CFD No. 2018-1" or "District") for the purpose of levying special taxes on parcels of taxable property to provide certain services which are necessary to meet increased demands placed upon the City. Discussion Development projects are subject to conditions of approval that require projects to form/annex a services district. These districts apply an annual fee or special tax upon properties within the District which provide the revenue to offset the cost of public safety necessary to serve the development. ICO Fund VI, LLC (the “Developer”) has agreed to initiate and conduct the CFD annexation proceedings pursuant to the Act. To that end, the Developer has submitted a "Consent and Waiver" form, which is on file in the City Clerk's office that authorizes the City to (1) hold the election and declare election results; (2) shorten election time requirements; (3) waive analysis and arguments; (4) waive all notice requirements relating to the conduct of the election immediately following the public hearing. The public services proposed to be financed within and for the benefit of the territory to be annexed to the District are the following: 1. Police protection services (including but not limited to criminal justice services) and paramedic services; and 2. City and County costs associated with the setting, levying and collection of the 16 Packet Pg. 487 7033 Page 2 special tax, and in the administration of the District including the contract administration and for the collection of reserve funds. The proposed development includes approximately 9.66 gross acres of vacant residential property to include 96 detached single -family residential lots. This development will be Annexation No. 3 within CFD No. 2018-1, as shown in the boundary map and included in the Resolution of Intention as Exhibit “D”. In order to annex into CFD No. 2018-1, a Resolution of Intention to annex property must be approved to identify the services and establish the maximum special tax for this annexation. The Resolution of Intention shall also set the date and time for the public hearing. The rate and method of apportionment of the special tax for Annexation No. 3, is included as Exhibit “C” to the Resolution of Intention. The maximum annual special tax for this development has been calculated to be $385 per residential unit for FY 2021/22. If the maximum allowable annual fee were levied, the revenue generated would be $36,960 per year. In order to annex property to CFD No. 2018-1 pursuant to the provisions of California Government Code Section 53311 et seq., the City must adopt a series of three statutorily required Resolutions and an Ordinance which are summarized below. Resolution declaring City intent to annex territory to Community Facilities District No. 2018-1 including the boundary of the area to be annexed and the rate and method of apportionment of special taxes within the annexation area (the special tax applies only to properties within the annexation area). Resolution calling an election to submit to the qualified electors the question of levying a special tax within the area proposed to be annexed to the District. Resolution declaring the results of the election and directing the record ing of the notice of special tax lien. Amend the Ordinance and order the levy and collection of special taxes in the District. With the adoption of the Resolution of Intention, the Public Hearing would be scheduled for March 3, 2021. 2020-2025 Key Strategic Targets and Goals This project is consistent with Key Target No 4: Ensure Development of a Well-Planned Balanced and Sustainable City. This project will contribute to ensure that the City is clean and attractive and provide infrastructure designed for long term economic growth. Fiscal Impact The individual property owners in the CFD will be responsible for annual payments of special taxes. Upon full completion of the development, it is estimated that there will be 16 Packet Pg. 488 7033 Page 3 an annual collection of special tax revenues of approximately $36,960 to be used to pay for safety services. The Maximum Special Tax rate is proposed to escalate each year after July 1, 2024 by four percent (4.0%). All costs associated with annexation into the CFD have been borne by the Developer. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, adopt Resolution No. 2021-6 of the Mayor and City Council of the City of San Bernardino, California, acting as the legislative body of Community Facilit ies District No. 2018-1 of the City of San Bernardino (Safety Services), declaring its intention to consider annexing territory to Community Facilities District No. 2018-1 of the City of San Bernardino (Safety Services). Attachments Attachment 1 Resolution 2021-6 Attachment 2 Exhibit A - Description of Territory Attachment 3 Exhibit B - Description of Authorized Services Attachment 4 Exhibit C - Rate and Method of Apportionment Attachment 5 Exhibit D - Annexation and Potential Annexation Boundary Maps Attachment 6 Exhibit E - Signed Petition, Waiver and Consent Attachment 7 Exhibit F - Notice of Public Hearing Attachment 8 Exhibit G - Special Election Ballot Attachment 9 Project/Location Map Ward: 3 Synopsis of Previous Council Actions: August 15, 2018 Mayor and City Council adopted Resolution No. 2018 -239, a Resolution of Intention to form Community Facilities District No. 2018-1 (Safety Services) of the City of San Bernardino (the “Resolution of Intention”), pursuant to the provisions of the Mello-Roos Community Facilities Act of 1982”. September 19, 2018 Resolution No. 2018-264 was adopted establishing Community Facilities District No. 2018-1; Resolution No. 2018-265 was adopted declaring election results for Community Facilities District No. 2018-1; and first reading of Ordinance No. MC-1506 levying special taxes to be collected during FY 2018-19 to pay annual costs of safety services and expenses with respect to Community Facilities District No. 2018-1. October 3, 2018 Final reading of Ordinance No. MC-1506 levying special taxes to be collected during FY 2018-19 to pay annual costs of safety services and expenses with respect to Community Facilities District No. 2018-1. 16 Packet Pg. 489 RESOLUTION NO. 2021-6 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, ACTING AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2018-1 OF THE CITY OF SAN BERNARDINO (SAFETY SERVICES), DECLARING ITS INTENTION TO CONSIDER ANNEXING TERRITORY TO COMMUNITY FACILITIES DISTRICT NO. 2018-1 OF THE CITY OF SAN BERNARDINO (SAFETY SERVICES) WHEREAS, on August 15, 2018 the City Council (the “City Council”) of the City of San Bernardino adopted Resolution No. 2018-239 (the “Resolution of Intention”), declaring its intention to establish Community Facilities District No. 2018-1 of the City of San Bernardino (Safety Services) (“Community Facilities District No. 2018-1” or the “District”) pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5 of Part 1 of Division 2 of Title 5 of the Government Code of the State of California (the “Act”); and WHEREAS, after a duly noticed public hearing, the City Council adopted Resolution No. 2018-264 (the “Resolution of Formation”) establishing Community Facilities District No. 2018-1 and calling a special election therein to authorize (i) the levy of special taxes pursuant to the rate and method of apportionment of the special tax, as set forth in Exhibit “C” attached to the Resolution of Intention (the “Original Rate and Method”), and (ii) the establishment of an appropriations limit for Community Facilities District No. 2018-1; and WHEREAS, the City Council has received a petition form and signed by ICO Fund VI, LLC, requesting (i) the annexation of the territory within the boundaries set forth in Exhibit “A”, hereto (the “Annexation Territory”) to the District; (ii) the levy of the special tax within the Annexation Territory in accordance with the Rate and Method of Apportionment of Special Tax attached as Exhibit “C”, hereto (the “Rate and Method”), which Rate and Method is identical to the Original Rate and Method in all respects except that Appendix A thereto has been updated in accordance with the terms of the Original Rate and Method to reflect the annexation described herein and (iii) the waiving certain election requirements. BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. Recitals. Each of the above recitals is true and correct. SECTION 2. Intent to Annex. The City Council declares its intention to conduct proceedings pursuant to the Act for the annexation to the District of the Annexation Territory. SECTION 3. Description of Territory Proposed to be Annexed, Annexation Map. The map showing the original boundaries of the District designated as “Map of Proposed Boundaries of Community Facilities District No. 2018-1 of the City of San Bernardino (Safety Services),” which map is on file in the office of the City Clerk and was recorded pursuant to Sections 3111 and 3113 of the Streets and Highways Code in the City of County Book of Maps of Assessment 16.a Packet Pg. 490 Attachment: Attachment 1 - Resolution No. 2021-6 (7033 : CFD 2018-1 Annexation 3 (Ward 3)) Resolution No. 2021-6 and Community Facilities Districts in the Assessor-County Clerk-Recorder’s office of the County of San Bernardino in Book No. 87 Page No. 96, on August 16, 2018 as Instrument No. 2018-0300849. The boundaries of the Annexation Territory proposed to be annexed to the District and be made subject to taxation are as shown on the annexation map set forth in Exhibit “D” hereto (the “Boundary Map”). The City Clerk is hereby directed to sign the boundary map and record it with all proper endorsements thereon with the County Recorder of the County of R iverside within 15 days after the adoption of this resolution, all as required by Section 3111 of the Streets and Highways Code of the State of California. SECTION 4. Description of Authorized Services. The Services (as defined in the Rate and Method) proposed to be provided for the benefit of the Annexation Territory are public services as defined in the Act, and this City Council finds and determines that the Services to be financed are in addition to those provided in the territory the Annexation Territory, at the present time and do not supplant services already available within the Annexation Territory at the present time. The City Council hereby finds and determines that the description of the Services herein is sufficiently informative to allow taxpayers within the Annexation Territory, to understand what the funds of the District may be used to finance. The Services Incidental Expenses (as defined in the Rate and Method) expected to be incurred within the Annexation Territory are set forth in the Rate and Method. The amount and term of the special tax to be levied by the District within the Annexation Territory and the Services to be provided by the District within the Annexation Territory shall be identical to those within the original boundaries of the District. SECTION 5. Levy of Special Taxes. Except where funds are otherwise available, it is the intention of the City Council to levy annually in accordance with the procedures contained in the Act a separate special tax, secured by recordation of a continuing lien against all nonexempt real property in the Annexation Territory, sufficient to pay for the Services and the Services Incidental Expenses. The rate and method of apportionment and manner of collection of the special taxes set forth in Exhibit “C” allows each homeowner within the Annexation Territory to estimate the maximum amount that may be levied against each parcel. The special taxes for Services may be increased by an amount not to exceed four percent (4%) per year after July 1, 2024 to the extent permitted in the Rate and Method. The special tax for Services may be levied for such period as the Services are needed, as further described in Exhibit “B” hereto. The special taxes are based on the expected demand that each parcel of real property within the Annexation Territory will place on the Services. The City Council hereby determines that the proposed Services are necessary to meet the increased demand placed upon the City and the existing police and paramedic services in the City as a result of the development of the land proposed for annexation to the District. The City Council hereby determines the rate and method of apportionment of the special taxes to be reasonable. The special tax is apportioned to each parcel on the foregoing basis pursuant to Section 53325.3 of the Act and such special taxes are not on or based upon value or ownership of real property. 16.a Packet Pg. 491 Attachment: Attachment 1 - Resolution No. 2021-6 (7033 : CFD 2018-1 Annexation 3 (Ward 3)) Resolution No. 2021-6 SECTION 6. Public Hearing. A public hearing (the “Hearing”) on the annexation of the Annexation Territory to the District, the levy of the special tax within the Annexation Territory in accordance with the Rate and Method to finance the Services shall be held at 7:00 p.m., or as soon thereafter as practicable, on March 3, 2021, Bing Wong Auditorium of the Norman F. Feldheym Public Library at 555 W. 6th Street, San Bernardino, California. Should the City Council determine to annex the Annexation Territory to the District, a special election will be held to authorize the levy of the special taxes in accordance with the procedures contained in Government Code Section 53326. If held, the proposed voting procedure at the election will be a landowner vote with each landowner who is the owner of record of land within Annexation Territory at the close of the Hearing, or the authorized representative thereof, having one vote for each acre or portion thereof owned within the Annexation Territory. Ballots for the special election may be distributed by mail or by personal service. SECTION 7. Adjustments. The City Council does not intend to make any adjustment in property taxation pursuant to Sections 53313.6 and 53313.7 of the Act. SECTION 8. Public Hearing. At the time and place set forth above for the Hearing, any interested person, including all persons owning lands or registered to vote within the Annexation Territory, may appear to be heard. SECTION 9. Notice of Public Hearing. The City Clerk is hereby directed to publish a notice (the “Notice”) of the Hearing pursuant to Section 6061 of the Government Code in a newspaper of general circulation published in the area of the Annexation Territory. The City Clerk is further directed to mail a copy of the Notice to each landowner within the Annexation Territory at least 15 days prior to the Hearing. The Notice shall contain the text or a summary of this Resolution, the time and place of the Hearing, a statement that the testimony of all interested persons or taxpayers will be heard, a description of the protest rights of the registered voters and landowners in the proposed district and a description of the proposed voting procedure for the election required by the Act. Such publication shall be completed at least seven (7) days prior to the date of the Hearing. SECTION 10. That the City Council finds this Resolution is not subject to the California Environmental Quality Act (CEQA) in that the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty, as in this case, that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. SECTION 11. Severability. If any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications, and to this end the provisions of this Resolution are declared to be severable. SECTION 12. Effective Date. This Resolution shall become effective immediately. 16.a Packet Pg. 492 Attachment: Attachment 1 - Resolution No. 2021-6 (7033 : CFD 2018-1 Annexation 3 (Ward 3)) Resolution No. 2021-6 APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this ___ day of __________ 2021. John Valdivia, Mayor City of San Bernardino Attest: Genoveva Rocha, CMC, City Clerk Approved as to form: Sonia Carvalho, City Attorney 16.a Packet Pg. 493 Attachment: Attachment 1 - Resolution No. 2021-6 (7033 : CFD 2018-1 Annexation 3 (Ward 3)) Resolution No. 2021-6 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, City Clerk, hereby certify that the attached is a true copy of Resolution No. 2021-___, adopted at a regular meeting held on the ___ day of _______ 2021 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ REYNOSO _____ _____ _______ _______ CALVIN _____ _____ _______ _______ ALEXANDER _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2021. Genoveva Rocha, CMC, City Clerk 16.a Packet Pg. 494 Attachment: Attachment 1 - Resolution No. 2021-6 (7033 : CFD 2018-1 Annexation 3 (Ward 3)) EXHIBIT A DESCRIPTION OF PROPOSED TERRITORY TO BE ANNEXED The City of San Bernardino Community Facilities District No. 2018-1 (Safety Services) (the “CFD No. 2018-1”) Annexation No. 3 is currently comprised of one (1) parcel, located within the city boundaries. The property is identified by the following San Bernardino County Assessor's Parcel Number (APNs). APN Tract Number Owner Name 0281-161-48 TR 20293 ICO Fund VI, LLC 16.b Packet Pg. 495 Attachment: Attachment 2 - Exhibit A - Desc of Territory (7033 : CFD 2018-1 Annexation 3 (Ward 3)) EXHIBIT B CITY OF SAN BERNARDINO COMMUNITY FACILITIES DISTRICT NO. 2018-1 (SAFETY SERVICES) DESCRIPTION OF AUTHORIZED SERVICES The services which may be funded with proceeds of the special tax of CFD No. 2018-1, as provided by Section 53313 of the Act, will include some or all of the costs attributable to public safety. These services include police protection services (including but not limited to criminal justice services) and paramedic services. In addition to payment of the cost and expense of the forgoing services, proceeds of the special tax may be expended to pay “Administrative Expenses” as said term is defined in the Rate and Method of Apportionment and to establish an operating reserve for the costs of services as determined by the Administrator. The above services shall be limited to those provided within the boundaries of CFD No. 2018-1 for the benefit of the properties within the boundaries of CFD No. 2018-1 and said services may be financed by proceeds of the special tax of CFD No. 2018-1 only to the extent that they are in addition to those provided in the territory of CFD No. 2018-1 before CFD No. 2018-1 was created.   16.c Packet Pg. 496 Attachment: Attachment 3 - Exhibit B - Desc of Services (7033 : CFD 2018-1 Annexation 3 (Ward 3)) EXHIBIT C City of San Bernardino Page 1  Community Facilities District No. 2018‐1 (Safety Services)   RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX FOR   COMMUNITY FACILITIES DISTRICT NO. 2018‐1 (SAFETY SERVICES)  OF THE CITY OF SAN BERNARDINO    A Special Tax (the “Special Tax”) shall be levied on and collected from each Assessor’s Parcel (defined  below) in Community Facilities District No. 2018‐1 (Safety Services) (the “CFD No. 2018‐1” or “CFD”;  defined below), in each Fiscal Year, (defined below), commencing in the Fiscal Year beginning July 1, 2019,  in an amount determined by the City Council of the City of San Bernardino, acting in its capacity as the  legislative body of CFD No. 2018‐1, by applying the rate and method of apportionment set forth below.   All of the real property in CFD No. 2018‐1, unless exempted by law or by the provisions herein, shall be  taxed to the extent and in the manner provided herein.    A. DEFINITIONS    “Administrative Expenses” means the actual or reasonably estimated costs directly related to the  formation and administration of CFD No. 2018‐1 including, but not limited to: the costs of computing  the Special Taxes and preparing the annual Special Tax collection schedules (whether by the City or  designee thereof or both); the costs to the City, CFD No. 2018‐1, or any designee thereof associated  with fulfilling the CFD No. 2018‐1 reporting requirements; the costs associated with responding to  public inquiries regarding the Special Taxes; the costs of the City, CFD No. 2018‐1 or any designee  thereof related to an appeal of the Special Tax; and the City's annual administration fees and third  party expenses.  Administrative Expenses shall also include amounts estimated or advanced by the  City or CFD No. 2018‐1 for any other administrative purposes of CFD No. 2018‐1, including attorney's  fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent  Special Taxes.    “Administrator” means the City Manager of the City of San Bernardino, or his or her designee.    “Assessor’s Parcel” means a lot or parcel of land that is identifiable by an Assessor’s Parcel Number  by the County Assessor of the County of San Bernardino.    “Assessor’s Parcel Map” means an official map of the Assessor of the County designating parcels by  Assessor’s Parcel Number.    “Assessor’s Parcel Number” means the identification number assigned to a parcel by the County  Assessor of the County of San Bernardino.    “CFD” or “CFD No. 2018‐1” means the City of San Bernardino Community Facilities District No. 2018‐ 1 (Safety Services).    “City” means the City of San Bernardino.     “County” means the County of San Bernardino.    “Developed Property” means all Assessor’s Parcels of Taxable Property for which a building permit  for new construction has been issued on or prior to June 1 preceding the Fiscal Year in which the  Special Tax is being levied.    16.d Packet Pg. 497 Attachment: Attachment 4 - Exhibit C - RMA (7033 : CFD 2018-1 Annexation 3 (Ward 3)) City of San Bernardino Page 2  Community Facilities District No. 2018‐1 (Safety Services)   “Developed Multi‐Family Property” means all Assessor's Parcels of Developed Property for which a  building permit or use permit for the construction of a residential structure with two or more  Residential Units that share a single Assessor's Parcel Number, as determined by the Administrator,  has been issued prior to June 1 preceding the Fiscal Year in which the Special Tax is being levied.    “Developed Single Family Property” means any residential property other than a Developed Multi‐ Family Property on an Assessor’s Parcel for which a building permit for new construction has been  issued by the City on or prior to June 1 preceding the Fiscal Year in which the Special Tax is being  levied.    “Exempt Property” means all Assessors’ Parcels designated as being exempt from the Special Tax as  provided for in Section D.     “Fiscal Year” means the period from and including July 1st of any year to and including the following  June 30th.     “Maximum Special Tax” means the Maximum Special Tax, as applicable, levied within the CFD for  any Fiscal Year.     “Proportionately” means for Taxable Property, that the ratio of the actual Special Tax levy to the  Maximum Special Tax is the same for all Assessor’s Parcels.    “Residential Unit” or "RU" means a residential unit that is used or intended to be used as a domicile  by one or more persons, as determined by the Administrator.    “Residential Property” means all Assessor’s Parcels of Taxable Property upon which completed  Residential Units have been constructed or for which building permits have been or may be issued for  purposes of constructing one or more Residential Units.    “Services” means services permitted under the Mello‐Roos Community Facilities Act of 1982  including, without limitation, those services authorized to be funded by CFD No. 2018‐1 as set forth  in Appendix B.     “Special Tax” means the Special Tax to be levied in each Fiscal Year on each Assessor’s Parcel of  Taxable Property.    "Special Tax Requirement" means the amount to be collected in any Fiscal Year to pay for certain  costs as required to meet the public safety needs of CFD No. 2018‐1 in both the current Fiscal Year  and the next Fiscal Year. The costs to be covered shall be the direct costs for (i) police protection  services, (ii) paramedic services, (iii) fund an operating reserve for the costs of Services as determined  by the Administrator, and (iv) Administrative Expenses. Under no circumstances shall the Special Tax  Requirement include funds for bonds.  "Taxable Property" means all Assessor’s Parcels within CFD No. 2018‐1, which are not Exempt  Property.    “Taxable Unit” means a Residential Unit.       16.d Packet Pg. 498 Attachment: Attachment 4 - Exhibit C - RMA (7033 : CFD 2018-1 Annexation 3 (Ward 3)) City of San Bernardino Page 3  Community Facilities District No. 2018‐1 (Safety Services)   B. RATE AND METHOD OF APPORTIONMENT OF MAXIMUM SPECIAL TAX RATES    As of July 1 of each Fiscal Year, commencing July 1, 2019, the Council shall determine the Special Tax  Requirement and shall levy the Special Tax upon each of the Assessor’s Parcels within the CFD which  constitute a Developed Single Family Property or a Developed Multi‐Family Property until the  aggregate amount of Special Tax equals the Special Tax Requirement. The Special Tax shall be levied  Proportionately on all Assessor’s Parcels of Developed Property up to 100% of the applicable  Maximum Special Tax to satisfy the Special Tax Requirement.     The Maximum Special Tax for Fiscal Year 2019‐2020 for a Developed Single Family Property and a  Developed Multi‐Family Property are shown below in Table 1.      TABLE 1  MAXIMUM SPECIAL TAX RATES   FISCAL YEAR 2019‐2020    Description  Taxable   Unit  Maximum   Special Tax  Developed Single Family Property RU $385   Developed Multi‐Family Property RU $358      Increase in the Maximum Special Tax    On each July 1, commencing on July 1, 2024 the Maximum Special Tax for Developed Property shall  increase by four percent (4.0%).    No Special Tax shall be levied on property which, at the time of adoption of the Resolution of  Formation for CFD No. 2018‐1 is an Exempt Property.    C. TERM OF SPECIAL TAX     For each Fiscal Year, the Maximum Special Taxes shall be levied as long as the Services are being  provided within the boundaries of CFD No. 2018‐1.    D. EXEMPTIONS      The City shall classify as Exempt Property within CFD No. 2018‐1, any Assessor’s Parcel in any of the  following categories; (i) Assessor’s Parcels which are owned by, irrevocably offered for dedication,  encumbered by or restricted in use by any public entity; (ii) Assessor’s Parcels with public or utility  easements making impractical their utilization for other than the purposes set forth in the easement;  (iii) Assessor’s Parcels which are privately owned but are encumbered by or restricted solely for public  uses; (iv) any Assessor’s Parcel which is in use in the performance of a public function as determined  by the Administrator; or (v) any Assessor’s Parcel which is not a Developed Single Family Property or  a Developed Multi‐Family Property.    16.d Packet Pg. 499 Attachment: Attachment 4 - Exhibit C - RMA (7033 : CFD 2018-1 Annexation 3 (Ward 3)) City of San Bernardino Page 4  Community Facilities District No. 2018‐1 (Safety Services)   E. APPEALS      Any property owner claiming that the amount or application of the Special Taxes are not correct may  file a written notice of appeal with the City not later than twelve months after having paid the first  installment of the Special Tax that is disputed.  The Administrator shall promptly review the appeal,  and if necessary, meet with the property owner, consider written and oral evidence regarding the  amount of the Special Tax, and rule on the appeal.  If the Administrator’s decision requires that the  Special Tax for an Assessor’s Parcel be modified or changed in favor of the property owner, a cash  refund shall not be made, but an adjustment shall be made to the Special Tax on that Assessor’s Parcel  in the subsequent Fiscal Year(s).       F. MANNER OF COLLECTION     The Maximum Special Taxes levied in each Fiscal Year shall be collected in the same manner as  ordinary ad valorem property taxes are collected and shall be subject to the same penalties and the  same procedure, sale, and lien priority in case of delinquency as is provided for ad valorem taxes.   However, the District may collect the Special Tax at a different time or in a different manner if  necessary to meet its financial obligations.      The Maximum Special Taxes when levied shall be secured by the lien imposed pursuant to Section  3115.5 of the Streets and Highways Code.  This lien shall be a continuing lien and shall secure each  levy of Maximum Special Taxes.  The lien of Maximum Special Taxes shall continue in force and effect  until the Special Tax ceases to be levied in the manner provided by Section 53330.5 of the Government  Code.         16.d Packet Pg. 500 Attachment: Attachment 4 - Exhibit C - RMA (7033 : CFD 2018-1 Annexation 3 (Ward 3)) City of San Bernardino Page 5  Community Facilities District No. 2018‐1 (Safety Services)   APPENDIX A    CITY OF SAN BERNARDINO  COMMUNITY FACILITIES DISTRICT NO. 2018‐1   (SAFETY SERVICES)    ANNEXATION  SUMMARY  Safety Services ‐ It is estimated that the cost of providing police and paramedic services being funded by  the Special Tax for the Community Facilities District No. 2018‐1 (Safety Services) will be as follows for the  Fiscal Year 2021‐2022:   $385 per residential unit for Developed Single Family Residential Property   $358 per residential unit for Developed Multi‐Family Residential Property  Annual Escalation ‐ On each July 1, commencing on July 1, 2024 the Maximum Special Tax for Developed  Property shall increase by four percent (4.0%).  Annex.   #  Fiscal  Year  Tract/   APN  Development  Name  No. of   Taxable  Units  Land Use  Category   Maximum   Special Tax Subdivider  Original 2019‐20 TR 17329  Verdemont  Ranch 74  Developed Single  Family Property $385 17329, LLC  1 2020‐21 TR 20006 Rancho Palma 119  Developed Single  Family Property $385 TH Rancho Palms LLC  2 2020‐21 TR 20261 Hispano Inv. 5  Developed Single  Family Property $385 Hispano Investors Inc  3 2021‐22 TR 20293 ICO Fund 96  Developed Single  Family Property $385 ICO Fund VI, LLC                          16.d Packet Pg. 501 Attachment: Attachment 4 - Exhibit C - RMA (7033 : CFD 2018-1 Annexation 3 (Ward 3)) City of San Bernardino Page 6  Community Facilities District No. 2018‐1 (Safety Services)   APPENDIX B    CITY OF SAN BERNARDINO  COMMUNITY FACILITIES DISTRICT NO. 2018‐1  (SAFETY SERVICES)  DESCRIPTION OF AUTHORIZED SERVICES    The services which may be funded with proceeds of the special tax of CFD No. 2018‐1, as provided by  Section 53313 of the Act, will include some or all of the costs attributable to public safety.    These services include police protection services (including but not limited to criminal justice services) and  paramedic services.     In addition to payment of the cost and expense of the forgoing services, proceeds of the special tax may  be expended to pay “Administrative Expenses” as said term is defined in the Rate and Method of  Apportionment and to establish an operating reserve for the costs of services as determined by the  Administrator.   The above services shall be limited to those provided within the boundaries of CFD No. 2018‐1 for the  benefit of the properties within the boundaries of CFD No. 2018‐1 and said services may be financed by  proceeds of the special tax of CFD No. 2018‐1 only to the extent that they are in addition to those provided  in the territory of CFD No. 2018‐1 before CFD No. 2018‐1 was created.                  16.d Packet Pg. 502 Attachment: Attachment 4 - Exhibit C - RMA (7033 : CFD 2018-1 Annexation 3 (Ward 3)) 16.ePacket Pg. 503Attachment: Attachment 5 - Exhibit D - Boundary Maps (7033 : CFD 2018-1 Annexation 3 (Ward 3)) 16.ePacket Pg. 504Attachment: Attachment 5 - Exhibit D - Boundary Maps (7033 : CFD 2018-1 Annexation 3 (Ward 3)) EXHIBIT E 16.f Packet Pg. 505 Attachment: Attachment 6 - Exhibit E - Signed Petition (7033 : CFD 2018-1 Annexation 3 (Ward 3)) 16.f Packet Pg. 506 Attachment: Attachment 6 - Exhibit E - Signed Petition (7033 : CFD 2018-1 Annexation 3 (Ward 3)) EXHIBIT A  LEGAL DESCRIPTION      16.f Packet Pg. 507 Attachment: Attachment 6 - Exhibit E - Signed Petition (7033 : CFD 2018-1 Annexation 3 (Ward 3)) EXHIBIT B  TENTATIVE TRACT MAP  16.f Packet Pg. 508 Attachment: Attachment 6 - Exhibit E - Signed Petition (7033 : CFD 2018-1 Annexation 3 (Ward 3)) DEVELOPMENT SERVICES~PUBLIC WORKS/ENGINEERINGCITY OF SAN BERNARDINOFORFROMTRACT No. 20293TENTATIVE TRACT MAPFERREE STREET & LAURELWOOD DRIVE4____ENGINEER'SENGINEER'SSEALINFORMATION10SCALE: 1" = 50'255010012345678910111213141516171819202122232425262728293031323334353616.fPacket Pg. 509Attachment: Attachment 6 - Exhibit E - Signed Petition (7033 : CFD 2018-1 Annexation 3 (Ward 3)) EXHIBIT F NOTICE OF PUBLIC HEARING ON INTENTION TO ANNEX TERRITORY TO AN EXISTING COMMUNITY FACILITIES DISTRICT 2018-1 (SAFETY SERVICES) (ANNEXATION NO. 3) NOTICE IS HEREBY GIVEN that the City Council of the City of San Bernardino on January 20, 2021 adopted its Resolution No. 2021-___, in which it declared its intention to annex territory to existing Community Facilities District No. 2018-1 (Safety Services) (the "CFD No. 2018-1"), and to levy a special tax to pay for certain safety services, all pursuant to the provisions of the Mello-Roos Community Facilities Act of 1982, Chapter 2.5, Part 1, Division 2, Title 5 of the California Government Code. The resolution describes the territory to be annexed and describes the rate and method of apportionment of the proposed special tax. No change in the tax levied in the existing CFD No. 2018-1 is proposed. NOTICE IS HEREBY FURTHER GIVEN that the City Council has fixed 7:00 p.m., or as soon thereafter as practicable, Wednesday, March 3, 2021 at the Bing Wong Auditorium of the Norman F. Feldheym Public Library at 555 W. 6th Street, San Bernardino, California, as the time and place when and where the City Council will conduct a public hearing on the annexation of territory to CFD No. 2018-1. At the hearing, the testimony of all interest persons for or against the annexation of the territory or the levying of the special taxes will be heard. If and to the extent participation in the March 3, 2021 meeting must occur by teleconference, videoconference, or other electronic means authorized by the Ralph M. Brown Act or an Executive Order of the Governor of California, the means and methods for participating the meeting shall be posted on the Agenda for said meeting, which shall be posted at least 72 hours prior to the meeting on the City of San Bernardino (www.sbcity.org), and outside of the Bing Wong Auditorium of the Norman F. Feldheym Public Library at 555 W. 6th Street, San Bernardino, California, 92418. A copy of the Agenda will be made available upon request to the San Bernardino City Clerk's office at 909-384-5002. DATED: ____________, 2021 _________________________________________ City Clerk of the City of San Bernardino PUB: _______________, 2021   16.g Packet Pg. 510 Attachment: Attachment 7 - Exhibit F - Notice of Public Hearing (7033 : CFD 2018-1 Annexation 3 (Ward 3)) EXHIBIT G CITY OF SAN BERNARDINO COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA COMMUNITY FACILITIES DISTRICT NO. 2018-1 (SAFETY SERVICES) ANNEXATION NO. 3 (March 3, 2021) This ballot is for the use of the authorized representative of the following owner of land within Community Facilities District No. 2018-1 (Safety Services) (“CFD No. 2018-1”) of the City of San Bernardino: Name of Landowner Number of Acres Owned Total Votes ICO Fund VI, LLC 9.66 10 According to the provisions of the Mello-Roos Community Facilities Act of 1982, and resolutions of the City Council (the “Council”) of the City of San Bernardino (the “City”), the above-named landowner is entitled to cast the number of votes shown above under the heading “Total Votes,” representing the total votes for the property owned by said landowner. The City has sent the enclosed ballot to you so that you may vote on whether or not to approve the special tax. This special tax ballot is for the use of the property owner of the parcels identified below, which parcels are located within the territory proposed to form the CFD No. 2018-1, City of San Bernardino, County of San Bernardino, State of California. Please advise the City Clerk, at (909) 384-5002 if the name set forth below is incorrect or if you are no longer one of the owners of these parcels. This special tax ballot may be used to express either support for or opposition to the proposed special tax. To be counted, this special tax ballot must be signed below by the owner or, if the owner is not an individual, by an authorized representative of the owner. The ballot must then be delivered to the City Clerk, either by mail or in person, as follows: Mail Delivery: If by mail, place ballot in the return envelope provided, and mail no later than February 17, 2021, two calendar weeks prior to the date set for the election. Mailing later than this deadline creates the risk that the special tax ballot may not be received in time to be counted. Personal Delivery: If in person, deliver to the City Clerk at any time up to 7:00 p.m. on March 3, 2021, at the Clerk’s office at 201 N. “E” Street, Bldg A, City of San Bernardino, CA 92401. However delivered, this ballot must be received by the Clerk prior to the close of the public meeting on March 3, 2021. Very truly yours, Genoveva Rocha, CMC, City Clerk 16.h Packet Pg. 511 Attachment: Attachment 8 - Exhibit G - Special Ballot (7033 : CFD 2018-1 Annexation 3 (Ward 3))   TO CAST THIS BALLOT, PLEASE RETURN THIS ENTIRE PAGE. OFFICIAL SPECIAL TAX BALLOT Name & Address of Property Owner: Assessor’s Parcel Number(s): ICO Fund VI, LLC Attn: Joe Oftelie 3090 Pullman Street Costa Mesa, CA 92626 0281-161-48 CITY OF SAN BERNARDINO COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA COMMUNITY FACILITIES DISTRICT NO. 2018-1 (SAFETY SERVICES) AN “X” OR OTHER MARK WILL CAST ALL VOTES ASSIGNED TO THIS BALLOT PROPOSITION A MARK “YES” OR “NO” WITH AN “X”: Shall the territory described in Attachment “A” of Resolution No. 2021-___ of the Mayor and City Council of the City of San Bernardino be annexed to Community Facilities District No. 2018-1 (Safety Services)? YES _________ NO _________ PROPOSITION B MARK “YES” OR “NO” WITH AN “X”: Shall a special tax with a rate and method of apportionment as provided in Attachment “C” to Resolution No. 2021-___ of the Mayor and City Council of the City of San Bernardino be levied to pay for the Services and other purposes described in Resolution No. 2018-264? YES _________ NO _________ Certification for Special Election Ballot The undersigned is an authorized representative of the above-named landowner and is the person legally authorized and entitled to cast this ballot on behalf of the above-named landowner. I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct and that this declaration is executed on ____________, 20__.        ICO Fund VI, LLC By: Joe Oftelie VP of Community Development Signature Print Name Title   16.h Packet Pg. 512 Attachment: Attachment 8 - Exhibit G - Special Ballot (7033 : CFD 2018-1 Annexation 3 (Ward 3)) PROJECT MAP CFD NO. 2018-1 (SAFETY SERVICES) ANNEXATION NO. 3   16.iPacket Pg. 513Attachment: Attachment 9 - Project Map (7033 : CFD 2018-1 Annexation 3 (Ward 3)) Page 1 Consent Calendar City of San Bernardino Request for Council Action Date: January 20, 2021 To: Honorable Mayor and City Council Members From: Robert D. Field, City Manager By: Jim Slobojan, Acting Finance Director Subject: Resolution to Adopt Escheatment Policy for Unclaimed Money (All Wards) Recommendation Adopt Resolution No. 2021-7 of the Mayor and City Council of the City of San Bernardino, California, adopting an escheatment policy for unclaimed money. Background The Escheatment Policy establishes guidelines for the escheatment of unclaimed money, including unclaimed checks, from the City, consistent with the provisions of California Government Code Sections 50050 through 50056. Discussion Financial policies are central to a strategic, long-term approach to financial management. The Government Finance Officers Association (GFOA) has consistently emphasized financial policies as an essential part of public financial management. In an effort to institutionalize sound financial management practices, the Finance department has begun an assessment to identify financial policies that may need to be updated or implemented. The purpose of the Escheatment Policy is to establish a means for individuals, businesses, or governments whose property is currently held by the City (in the form of unclaimed checks) to recover their property from the City. If any property remains unclaimed after the notification and claim period stipulated in the policy, the City is entitled to recover the funds ba ck to the originating fund (in most cases, the General Fund). The policy complies with the California Government Code, Sections 50050 through 50056, and all other applicable laws and regulations. 2020-2025 Key Strategic Targets and Goals Adopting an Escheatment Policy aligns with Key Target No. 1: Financial Stability by enabling the Finance Department and the City Manager to maintain a system of financial controls for the efficient collection and financial reporting of public funds. Fiscal Impact The exact fiscal impact of the proposed action is dependent upon any unclaimed property claims received, however, the potential amount to be recaptured by the City if 17 Packet Pg. 514 7042 Page 2 all eligible funds are unclaimed is approximately $180,000 as of December 31, 2020. Conclusion It is recommended that the Mayor and City Council adopt Resolution No. 2021 -7 adopting an escheatment policy for unclaimed money. Attachments Attachment 1 Resolution No. 2021-7 Attachment 2 Exhibit A - Escheatment Policy for Unclaimed Money Ward: All Synopsis of Previous Council Actions: N/A 17 Packet Pg. 515 RESOLUTION NO. 2021-7 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, ADOPTING AN ESCHEATMENT POLICY FOR UNCLAIMED MONEY WHEREAS, the City of San Bernardino desires to adopt a policy establishing guidelines for the escheatment of unclaimed money, including unclaimed checks, consistent with the provisions of state law, including California Government Code Sections 50050 through 50056; and WHEREAS, unclaimed property policies provide transparency and consistency and enable the Finance Department and the City Manager to maintain a system of financial controls for the efficient collection and financial reporting of public funds; and WHEREAS, the ability to escheat unclaimed property is an act that is taken solely for the common benefit of the City and its citizenry. BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. The above recitals are true and correct and are incorporated herein by this reference. SECTION 2. The Mayor and City Council hereby adopts the “Escheatment Policy for Unclaimed Money,” attached hereto as Exhibit “A” and incorporated herein by this reference. SECTION 3. That the City Council finds this Resolution is not subject to the California Environmental Quality Act (CEQA) in that the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty, as in this case, that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. SECTION 4. Severability. If any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications, and to this end the provisions of this Resolution are declared to be severable. SECTION 5. Effective Date. This Resolution shall become effective immediately. APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this ___ day of __________ 2021. John Valdivia, Mayor City of San Bernardino 17.a Packet Pg. 516 Attachment: Attachment 1 - Resolution No. 2021-7 (7042 : Resolution to Adopt Escheatment Policy for Unclaimed Money (All Wards)) Resolution No. 2021-7 Attest: Genoveva Rocha, CMC, City Clerk Approved as to form: Sonia Carvalho, City Attorney 17.a Packet Pg. 517 Attachment: Attachment 1 - Resolution No. 2021-7 (7042 : Resolution to Adopt Escheatment Policy for Unclaimed Money (All Wards)) Resolution No. 2021-7 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, City Clerk, hereby certify that the attached is a true copy of Resolution No. 2021-___, adopted at a regular meeting held on the ___ day of _______ 2021 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ REYNOSO _____ _____ _______ _______ CALVIN _____ _____ _______ _______ ALEXANDER _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2021. Genoveva Rocha, CMC, City Clerk 17.a Packet Pg. 518 Attachment: Attachment 1 - Resolution No. 2021-7 (7042 : Resolution to Adopt Escheatment Policy for Unclaimed Money (All Wards)) CITY OF SAN BERNARDINO FINANCE DEPARTMENT ESCHEATMENT POLICY FOR UNCLAIMED MONEY I. Purpose This Policy, working in conjunction with the City’s Water Department , is established to provide for the escheatment of unclaimed money, including unclaimed checks, to the City consistent with the provisions of state law, including California Government Code Sections 50050 through 50056. In the event of any conflict between the provisions of the state law and this Policy, the provisions of state law shall prevail. II. Scope This Policy applies to the City’s Finance Department. III. Policy Procedures A. Money that is not the property of the City, excluding restitution to victims, that remains unclaimed for a period of more than three (3) years shall become the property of the City forty-five (45) days after publication of the notice described in Paragraph C. below. Money that is not the property of the City that is restitution to victims which is unclaimed for a period of more than (3) years shall be deposited into the Restitution Fund or used by the City for victim services after the City documents that it made a reasonable effort to locate and notify the victim to whom the restitution is owed. (Government Code Sections 50050 and 50051) B. On a quarterly basis, the City’s Finance Director and the Water Department’s Director of Finance, or their designees, shall meet to review a listing of the unclaimed money held by the City and the Department to coordinate the appropriate notice. C. At any time following the expiration of the three (3) year period described in Paragraph A. above, the City’s Finance Director may cause a notice to be published once a week for two successive weeks in a newspaper of general circulation published in the City or on its website. (Government Code Section 50050) D. The notice shall include the following information: a. The individual or business name as shown on the issued check. b. The amount of the issued check. c. The fund in which it is held. d. A statement announcing that the money shall become the property of the City on the date that is forty-five (45) days after the first publication of the notice. (Government Code Section 50051) 17.b Packet Pg. 519 Attachment: Attachment 2 - Exhibit A - Escheatment Policy for Unclaimed Money (7042 : Resolution to Adopt Escheatment Policy for Unclaimed City of San Bernardino – Escheatment Policy Page 2 of 3 E. A party of interest may file a claim at any time until the date on which the money becomes the property of the City as provided in Paragraph A. above. The claim form must include the following information: a. The claimant’s name, address, telephone number, and Social Security Number or Federal Employer Identification Number. b. Proof of identity such as a copy of a driver’s license, social security card or birth certificate. c. Amount of the claim. d. The grounds on which the claim is founded. (Government Code Section 50052) F. Upon receipt of the information and documents described in Paragraph E. above prior to the date the unclaimed money becomes the property of the City, the Finance Director may release the money (by issuance of a new check, for example) to the depositor, or heir, beneficiary, or duly appointed representative. The claim shall be presented to the Finance Director in affidavit form and signed under penalty of perjury. The claimant, to be entitled to the entire escheated estate, needs only to establish with documentary proof the existence of a blood relationship to either the decedent or of the predeceased spouse, if any, and the documentary proof, if regular on its face, need not be certified. The Finance Director may rely in good faith on the sworn statements made in the claim and shall have no duty to inquire into the truth or credibility of evidence submitted ; payment shall completely discharge the Finance Director from any liability. (Government Code Section 50052.5(a) and 50052.5(d)) G. Upon rejection of a claim by the Finance Director, a claimant may file a verified complaint seeking to recover all, or a designated part, of the money in San Bernardino County Superior Court. The complaint and summons must be served on the Finance Director within thirty (30) days of claimant receiving notice that the claim was rejected. The Finance Director shall withhold the release of the portion of unclaimed money for which a court action has been filed until a decision is rendered by the court. (Government Code Section 50052) H. Unless otherwise required by law (e.g., where the claimant has served the Finance Director with a timely complaint as described in Paragraph G above or where the money is for victim restitution as described in Paragraph A ), upon unclaimed money becoming the property of the City, the funds shall be returned to the originating fund. To the extent such money is held in a special fund, the City Council may transfer it by resolution to the General Fund. (Government Code Section 50053) I. Any individual item of less than fifteen ($15.00) dollars or any amount, if the depositor’s name is unknown, which remains unclaimed for a period of one (1) year may be transferred to the General Fund by the City Council without the necessity of public notification in a newspaper or City website. (Government Code Section 50055) 17.b Packet Pg. 520 Attachment: Attachment 2 - Exhibit A - Escheatment Policy for Unclaimed Money (7042 : Resolution to Adopt Escheatment Policy for Unclaimed City of San Bernardino – Escheatment Policy Page 3 of 3 J. The responsibilities of the Finance Director may be delegated by the Finance Director to the department that maintains the supporting records of the uncleared checks based on the initial receipt or deposit of that money or both. (Government Code Section 50056) 17.b Packet Pg. 521 Attachment: Attachment 2 - Exhibit A - Escheatment Policy for Unclaimed Money (7042 : Resolution to Adopt Escheatment Policy for Unclaimed Page 1 Consent Calendar City of San Bernardino Request for Council Action Date: January 20, 2021 To: Honorable Mayor and City Council Members From: Robert D. Field, City Manager By: Edelia Eveland, Director of Human Resources Subject: Resolution Approving the City's Updated Personnel Rules (All Wards) Recommendation Adopt Resolution No. 2021-8 of the Mayor and City Council of the City of San Bernardino, California, approving the City’s updated Personnel Rules. Background On November 8, 2016, at an election, the voters of the City of San Bernardino approved the new City Charter. The administration of employee matters under section 508 of the new Charter was delegated to a Personnel or Human Resources Department. On January 31, 2017, the new Charter went into effect upon filing with the Secretary of State. On May 15, 2017, the Mayor and City Council adopted Resolution No. 2017 -88 renaming the Civil Services Rules and Regulations to the Personnel Rules (Rules). Certain immediate revisions to the Rules were required to align with the provisions in sections 508 and 604 of the new Charter to enable the City to continue to support the disciplinary appeals process and address other personnel issues without interruption. At the time, it was anticipated a comprehensive review of the Rules would be required and additional realignments would be presented at a later date for the Mayor and City Council’s consideration. Discussion A comprehensive review of the current Memoranda of Understanding (MOUs), disciplinary and other employment provisions was necessary to ensure the City maintains a set Personnel Rules (Rules) aligned with the updated City Charter, and federal and state laws. After the comprehensive review was finalized, the Rules were updated so the document continues providing employees an overview of City’s practices and procedures including relevant information related to employment practices, employee and employer responsibilities, and procedures related to disciplinary actions. Additionally, obsolete language that is no longer needed in the Rules is being recommended for deletion. Under, the California Meyers-Milias-Brown-Act (MMBA) the City has an obligation to meet and confer in good faith in all matters relating to employment conditions a nd employer-employee relations, including, but not limited to wages, hours, and other 18 Packet Pg. 522 7050 Page 2 terms and conditions of employment with its bargaining groups. Pursuant to the MMBA, the City met and conferred with all the bargaining groups to reach concurrence across the board on the updated Rules attached as Exhibit A. A detailed table outlining all the necessary updates to the Rules is attached as Exhibit B. 2020-2025 Key Strategic Targets and Goals Approving the updated Rules aligns with Key Target No. 1d. Financial Stability - minimize risk and litigation exposure and 2b: Focused, Aligned Leadership and Unified Community - build a culture that attracts, retains, and motivates the highest quality talent. Comprehensive updates ensure that the rules are consistent an d effective. Fiscal Impact No fiscal impact to the City. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution No. 2021-8, approving the City’s updated Personnel Rules. Attachments Attachment 1 Resolution 2021-8 Attachment 2 Exhibit A - City of San Bernardino Personnel Rules Attachment 3 Exhibit B - City of San Bernardino Rules Comparison Table Ward: ALL Synopsis of Previous Council Actions: May 15, 2017 Mayor and City Council adopted Resolution No. 2017-88, approving renaming the Civil Services Rules and Regulations to the Personnel Rules (“Rules”); Approving Amendments to Rules 513 - 513.5 and 601 Pursuant to Chapter 2.50 of The San Bernardino Municipal Code; conforming Rules 513 - 513.5 and 601 to the new Charter by changing references from the Civil Service Board to the Personnel Commission; delegating authority for actions other than disciplinary appeals previously assigned in the rules to the Civil Service Board and Chief Examiner to a designee of the Appointing Power under the Human Resources Department. 18 Packet Pg. 523 RESOLUTION NO. 2021-8 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, APPROVING THE CITY’S UPDATED PERSONNEL RULES WHEREAS, on November 8, 2016, the voters of the City of San Bernardino, at an election approved the new City Charter; and WHEREAS, on May 15, 2017, the Mayor and City Council approved Resolution No. 2017-88 renaming the Civil Services Rules and Regulations to the Personnel Rules (Rules); and WHEREAS, certain immediate revisions were required to align the Rules to the new City Charter to enable the City to continue to support the disciplinary appeals process and address other personnel issues without interruption; and WHEREAS, a comprehensive review was necessary to ensure the Rules aligned with the updated City Charter, and federal and state laws; and WHEREAS, in compliance with the Meyers-Milias-Brown-Act, the City met and conferred in good faith with all bargaining groups to reach concurrence across the board on the updated Rules attached as Exhibit A. BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. The above recitals are true and correct and are incorporated herein by this reference. SECTION 2. The updated Personnel Rules attached hereto and incorporated herein as Exhibit A are hereby approved. SECTION 3. That the City Council finds this Resolution is not subject to the California Environmental Quality Act (CEQA) in that the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty, as in this case, that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. SECTION 4. Severability. If any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications, and to this end the provisions of this Resolution are declared to be severable. SECTION 5. Effective Date. This Resolution shall become effective immediately. APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this ___ day of __________ 2021. 18.a Packet Pg. 524 Attachment: Attachment 1 - Resolution No. 2021-8 (7050 : Resolution Approving the City's Updated Personnel Rules (All Wards)) Resolution No. 2021-8 John Valdivia, Mayor City of San Bernardino Attest: Genoveva Rocha, CMC, City Clerk Approved as to form: Sonia Carvalho, City Attorney 18.a Packet Pg. 525 Attachment: Attachment 1 - Resolution No. 2021-8 (7050 : Resolution Approving the City's Updated Personnel Rules (All Wards)) Resolution No. 2021-8 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, City Clerk, hereby certify that the attached is a true copy of Resolution No. 2021-___, adopted at a regular meeting held on the ___ day of _______ 2021 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ REYNOSO _____ _____ _______ _______ CALVIN _____ _____ _______ _______ ALEXANDER _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2021. Genoveva Rocha, CMC, City Clerk 18.a Packet Pg. 526 Attachment: Attachment 1 - Resolution No. 2021-8 (7050 : Resolution Approving the City's Updated Personnel Rules (All Wards)) City of San Bernardino Personnel Rules Revised: 2020 18.b Packet Pg. 527 Attachment: Attachment 2 - HR.Personnel Rules Attachment 2.Resolution Exhibit A (7050 : Resolution Approving the City's Updated Personnel City of San Bernardino Personnel Rules City of San Bernardino Personnel Rules Page 2 Table of Contents Rule I – General Provisions and Employment Practices ............................................................. 6 1-1 Purpose: ...................................................................................................................... 6 1-2 Equal Employment: ...................................................................................................... 6 1-3 Conflicts of Interest: ..................................................................................................... 6 1-4 Nepotism: .................................................................................................................... 7 1-5 Amendment and Revision of Rules: ............................................................................. 8 1-6 Departmental Rules and Regulations: .......................................................................... 8 1-7 Conflict between the Rules and a Collective Bargaining Agreement: ........................... 8 Rule 2 – Types of Positions and Appointments .......................................................................... 9 2-1 Types of Positions........................................................................................................ 9 (a) Full Time: ................................................................................................................. 9 (b) Part Time: ................................................................................................................. 9 (c) Temporary: ............................................................................................................... 9 (d) Seasonal: ................................................................................................................. 9 2-2 Types of Appointments ...............................................................................................10 (a) Regular Classified Appointment: .............................................................................10 (b) Regular Unclassified Appointment: ..........................................................................10 (c) Temporary: ..............................................................................................................10 (d) Seasonal: ................................................................................................................11 (e) Higher Acting Appointment: .....................................................................................11 (f) Transition from Regular Unclassified Appointment to Classified Service Appointment: 11 Rule 3 – Probation ....................................................................................................................12 3-1 Probationary Appointment: ..............................................................................................12 (a) Objective of Probation: ............................................................................................12 (b) Probationary Period: ................................................................................................12 (b) Removal During Probation ......................................................................................13 (c) Rejection After Promotion ........................................................................................13 Rule 4 – Applications and Examinations ...................................................................................14 4-1 Requisition: .................................................................................................................14 4-2 Announcement: ...........................................................................................................14 4-3 Testing: .......................................................................................................................14 18.b Packet Pg. 528 Attachment: Attachment 2 - HR.Personnel Rules Attachment 2.Resolution Exhibit A (7050 : Resolution Approving the City's Updated Personnel City of San Bernardino Personnel Rules City of San Bernardino Personnel Rules Page 3 4-4 Eligible List:.................................................................................................................15 4-5 Notification of Results: ................................................................................................15 4-6 Use of Appropriate List: ..............................................................................................15 Rule 5 – Employment Lists........................................................................................................17 5-1 Re-employment List: ...................................................................................................17 5-2 Transfer List: ...............................................................................................................17 5-3 Promotional List: .........................................................................................................17 5-4 Open List: ...................................................................................................................17 5-5 Certification and Combination of Lists: ........................................................................18 5-6 Disqualification and Removal: .....................................................................................18 Rule 6 – Resignation, Job Abandonment, Reduction in Force, Demotion, Transfer and Reinstatement ...........................................................................................................................19 6-1 Resignation: ................................................................................................................19 6-2 Job Abandonment: ......................................................................................................19 6-3 Reduction in Force ......................................................................................................19 6-4 Voluntary Demotion: ...................................................................................................21 6-5 Transfer ......................................................................................................................21 6-6 Reinstatements: ..........................................................................................................21 (a) Voluntary Separations: ............................................................................................21 (b) Employees Laid Off, Demoted or Transferred due to a Reduction in Force: ............22 Rule 7 – Disciplinary Procedures ..............................................................................................23 7-1 Disciplinary Actions: ....................................................................................................23 7-2 Causes: ......................................................................................................................23 7-3 Pre-Disciplinary Procedures: .......................................................................................24 (a) Notice of Intent: .......................................................................................................24 (b) Causes: ...................................................................................................................24 (c) Charges:..................................................................................................................24 (d) Response: ...............................................................................................................24 (e) Representation: .......................................................................................................24 7-4 Notice of Decision and Charges: .................................................................................24 7-5 Personnel Commission Hearing: .................................................................................24 (a) Hearing Request .....................................................................................................24 (b) Hearing Date: ..........................................................................................................24 18.b Packet Pg. 529 Attachment: Attachment 2 - HR.Personnel Rules Attachment 2.Resolution Exhibit A (7050 : Resolution Approving the City's Updated Personnel City of San Bernardino Personnel Rules City of San Bernardino Personnel Rules Page 4 (c) Hearing: ..................................................................................................................25 (d) Hearing Decision: ....................................................................................................25 Rule 8 – Definition of Terms ......................................................................................................26 Appointment ..........................................................................................................................26 Appointing Authority ..............................................................................................................26 Commission...........................................................................................................................26 Certify ....................................................................................................................................26 Charter ..................................................................................................................................26 City ........................................................................................................................................26 Class .....................................................................................................................................26 Classified Service ..................................................................................................................26 Council ..................................................................................................................................26 Demotion ...............................................................................................................................26 Department Head ..................................................................................................................26 Eligible...................................................................................................................................26 Eligible List ............................................................................................................................26 Examination...........................................................................................................................26 Marital-Type Relationship: .....................................................................................................27 Probation Period ....................................................................................................................27 Probationary Status ...............................................................................................................27 Promotion ..............................................................................................................................27 Promotional Examination .......................................................................................................27 Promotional List .....................................................................................................................27 Provisional Status ..................................................................................................................27 Re-Employment List ..............................................................................................................27 Regular Employee .................................................................................................................27 Relative .................................................................................................................................27 Seasonal Position ..................................................................................................................27 Suspension ...........................................................................................................................27 Temporary Position ...............................................................................................................27 Test .......................................................................................................................................28 Transfer .................................................................................................................................28 18.b Packet Pg. 530 Attachment: Attachment 2 - HR.Personnel Rules Attachment 2.Resolution Exhibit A (7050 : Resolution Approving the City's Updated Personnel City of San Bernardino Personnel Rules City of San Bernardino Personnel Rules Page 5 Unclassified Service ..............................................................................................................28 18.b Packet Pg. 531 Attachment: Attachment 2 - HR.Personnel Rules Attachment 2.Resolution Exhibit A (7050 : Resolution Approving the City's Updated Personnel City of San Bernardino Personnel Rules City of San Bernardino Personnel Rules Page 6 Rule I – General Provisions and Employment Practices Purpose: To define the purpose of the personnel rules, equal employment, amendment, conflicts of interest, nepotism and revision of the personnel rules. 1-1 Purpose: The City of San Bernardino will employ the best qualified persons available. The tenure of every City employee will be based upon a demonstrated need for the work performed, availability of funds, effective performance, proper personnel conduct, and continuing fitness and qualification for the position. Each regular employee of the City of San Bernardino has the right to expect that he/she will be fully informed of his/her duties and responsibilities; that he/she will be provided with adequate administrative and supervisory direction; and that he/she will be informed of how well he/she is performing his/her duties. Promotions will be made on the basis of qualifications, merit and ability. Classified employees will not be subject to suspension, demotion, salary reduction, or discharge without reason or cause. These Rules do not create any contract right, or any express or limited contract of employment and the City retains the full discretion to modify the Rules at any time in accordance with the law. If any provision of a valid collective bargaining agreement between the City and a recognized employee organization conflicts with any provision of these Rules, the agreement shall apply to the employees covered by the collective bargaining agreement. 1-2 Equal Employment: The City affords equal employment opportunity for all qualified employees and applicants as to all terms of employment, including compensation, hiring, training, promotion, transfer, discipline, and termination. The City prohibits discrimination against employees or applicants for employment on the basis of race, religious creed, disability, medical condition, genetic information, marital status, sex, gender, gender identity, gender expression, age (40 and over), sexual orientation, or military and veteran status or other basis protected by law. Compensation, hiring, training, promotion, transfer, discipline, and termination are based solely upon individual qualifications and other non- discriminatory business needs. Employees, volunteers, or applicants who believe they have experienced any form of employment discrimination or abusive conduct are encouraged to report the conduct immediately by using the complaint procedures provided in the City’s policy on non- discrimination, retaliation, workplace harassment and sexual harassment, or by contacting the U.S. Equal Employment Opportunity Commission or the California Department of Fair Employment and Housing. 1-3 Conflicts of Interest: Each department head, officer and employee of the City of San Bernardino shall devote their attention and efforts to the City office of employment during normal hours of duty. No such department head, officer or employee shall engage in any 18.b Packet Pg. 532 Attachment: Attachment 2 - HR.Personnel Rules Attachment 2.Resolution Exhibit A (7050 : Resolution Approving the City's Updated Personnel City of San Bernardino Personnel Rules City of San Bernardino Personnel Rules Page 7 employment, activity, enterprise or conduct of any nature which is inconsistent, incompatible or in conflict with the duties as a department head, officer or employee, or with the duties, functions or responsibilities of the department or office in which employed. The employment, activities, enterprises, or conduct which are inconsistent, incompatible or in conflict with the duties of such personnel include but are not limited to matters which: (a) Involve the use of private gain or advantage of City time, facilities, equipment and supplies or the prestige or influence of one’s City office or employment; (b) Involve time demands that would render performance of his or her duties as a local agency officer or employee less efficient; (c) Involve receipt or acceptance by the department head, officer or employee of any money or other consideration from anyone other than the City for the performance of an act which the department head, officer or employee, if not performing such act, would be required or expected to render in the regular course of hours of City employment or as part of the assigned duties as a department head, officer or employee; and (d) Involve the performance of an act in a capacity other than as a department head, officer or employee, which act may later be subject directly or indirectly to the control, inspection, review audit or enforcement by such department head, officer or employee, or the department by which employed, or by the Board or Commission having authority or responsibility involving such duties or employment. 1-4 Nepotism: Any relative of the Mayor, City Council, Water Board, Library Board, Personnel Commission or City Manager shall not be appointed to any position within the City service. It is not, however, the intention of this Rule to terminate an employee of the City of San Bernardino who’s relative, becomes the Mayor, a City Council member, the City Manager, a Water Board Member or a Library Board Member. For the purpose of this rule, “relative” means any individual related by blood, marriage, marital-type relationship, or domestic partnership, within the third degree. A marital-type relationship is defined as two or more people living together in a family relationship without legal or blood ties. An employee is required to notify the appointing authority if the employee enters into a marriage, domestic partnership, or marital-type relationship with another employee where a supervisor/subordinate relationship exists. Relatives may be allowed to work within the same department as determined by the department head provided one does not supervise the other. No person shall be appointed, promoted, or transferred to a position in any department in which the person’s relative already holds a position when such employment would result in any of the following: 18.b Packet Pg. 533 Attachment: Attachment 2 - HR.Personnel Rules Attachment 2.Resolution Exhibit A (7050 : Resolution Approving the City's Updated Personnel City of San Bernardino Personnel Rules City of San Bernardino Personnel Rules Page 8 (a) A supervisor-subordinate relationship; or (b) The employee having job duties which require performance of shared duties on the same or related work assignment. If a City of San Bernardino employee marries, or enters a marital-type relationship or domestic partnership with, another person employed by the City within the same department, both employees shall be allowed to retain their respective positions provided a supervisory relationship does not exist at the time of marriage between these two positions. For the purpose of this rule, a supervisory relationship shall be defined as one in which one person exercises the right to control, direct, reward or discipline another person by virtue of the duties and responsibilities assigned to his or her position. 1-5 Amendment and Revision of Rules: Recommendation for amendment and revision of these Rules shall be made by the Appointing Authority. Prior to consideration, any recognized employee organization shall be given reasonable written notice of any proposed amendment or revision and be provided with an opportunity to respond. Amendments and revisions shall become effective upon adoption by Resolution of the City Council. 1-6 Departmental Rules and Regulations: Each department may establish a department manual of rules and regulations which shall be subject to approval by the Appointing Authority. These Personnel Rules may be further defined and qualified but not superseded by administrative regulations or policies. 1-7 Conflict between the Rules and a Collective Bargaining Agreement: If a provision of these Rules conflict with any provision of a valid collective bargaining agreement between the City and a recognized employee organization, the provision of the collective bargaining agreement that is in conflict shall apply to employees covered by that collective bargaining agreement. 18.b Packet Pg. 534 Attachment: Attachment 2 - HR.Personnel Rules Attachment 2.Resolution Exhibit A (7050 : Resolution Approving the City's Updated Personnel City of San Bernardino Personnel Rules City of San Bernardino Personnel Rules Page 9 Rule 2 – Types of Positions and Appointments Purpose: To define employment terms for uniform application/interpretation. 2-1 Types of Positions (a) Full Time: A classified or unclassified position established to provide full time service on an ongoing basis with all applicable benefits provided. (b) Part Time: An unclassified position established to provide part time service on an ongoing basis not to exceed an average of 29 hours per week or 1,000 hours in any 12 month period. The established work schedule may be irregular including short shifts at various times and days of the week. Part-time employees do not receive benefits beyond what is mandated by federal, state or local laws, rules, regulations or resolutions. (c) Temporary: An unclassified position established to provide service during emergency situations, unusual work load demands, special programs, training, projects or other like reasons on a full-time or part-time basis. Such positions are of a specific duration not to exceed 12 months except as authorized by the Appointing Authority. All appointments in this category shall be designated as “at will” and no benefits are provided beyond what is mandated by federal, state or local laws, rules or regulations. The Appointing Authority has the prerogative to appoint an individual to an unclassified position without a competitive process. (d) Seasonal: An unclassified position established for a period of time which will recur at definite intervals to meet seasonal staffing needs. Those appointed to seasonal positions will be separated at the end of the season and may be regularly re- appointed at each recurrence of the seasonal period. All appointments in this category shall be designated as “at will” and no benefits are provided beyond what is mandated by federal, state or local laws, rules or regulations. 18.b Packet Pg. 535 Attachment: Attachment 2 - HR.Personnel Rules Attachment 2.Resolution Exhibit A (7050 : Resolution Approving the City's Updated Personnel City of San Bernardino Personnel Rules City of San Bernardino Personnel Rules Page 10 2-2 Types of Appointments (a) Regular Classified Appointment: An appointment made in the classified service as defined in Municipal Code Chapter 2.04 from a certified eligible list to an authorized full-time position. Appointment is subject to successful completion of a probationary period. (b) Regular Unclassified Appointment: An appointment made outside the classified service as defined in Municipal Code Chapter 2.04. Such appointments shall be made to an authorized full or part time position typically from a certified eligible list. All appointments in this category shall be designated as “at will”. The Appointing Authority has the prerogative to appoint an individual to an unclassified position without a competitive process. (c) Temporary: An unclassified appointment to provide service during emergency situations, unusual work load demands, special programs, training, projects or other like reasons for a specific duration. All appointments in this category shall be designated as “at will” and no benefits are provided beyond what is mandated by federal, state or local laws, rules or regulations. The Appointing Authority may authorize the temporary appointment of a qualified individual that exceeds an average of 29 hours per week or 1,000 hours in 12 month period. 1) Provisional: In the absence of a certified eligibility list, the Appointing Authority may authorize a temporary provisional appointment to an authorized classified position without a competitive process. The provisional appointee must be qualified to hold the job classification. No provisional appointment may extend more than 90 days beyond the creation of a certified eligibility list for the classification. Nor may a provisional appointment extend more than six (6) months from the date of appointment unless an extension is authorized by the Appointing Authority for an additional period not to exceed six (6) months. Experience gained as a provisional appointee shall be given no more credit in the competitive examination process than would be received with an equal amount of experience in any other employment. 2) Limited-Term: An appointment to provide service during emergency situations, unusual work load demands, special programs, training, projects or other like reasons. Such positions are of a specific duration not to exceed 12 months except as authorized by the Appointing Authority. All appointments in this category shall be designated as “at will” and no benefits are provided beyond what is mandated by federal, state or local laws, rules or regulations. 3) Intern: An appointment designed to provide education, training and work experience to students enrolled in high school or college. Appointments are limited to 12 months except as authorized by the Appointing Authority and are 18.b Packet Pg. 536 Attachment: Attachment 2 - HR.Personnel Rules Attachment 2.Resolution Exhibit A (7050 : Resolution Approving the City's Updated Personnel City of San Bernardino Personnel Rules City of San Bernardino Personnel Rules Page 11 not to exceed an average of 29 hours per week or 1,000 hours in any 12 month period. All appointments in this category shall be designated as “at will” and no benefits are provided beyond what is mandated by federal, state or local laws, rules or regulations. 4) Apprentice: An appointment designed to provide on the job education, training and work experience opportunities in all City departments. Appointments are limited to 12 months except as authorized by the Appointing Authority and are not to exceed an average of 29 hours per week or 1,000 hours in any 12 month period. All appointments in this category shall be designated as “at will” and no benefits are provided beyond what is mandated by federal, state or local laws, rules or regulations. (d) Seasonal: An unclassified position established for a period of time which will recur at definite intervals to meet seasonal staffing needs. Those appointed to seasonal positions will be separated at the end of the season and may be regularly re- appointed at each recurrence of the seasonal period. All appointments in this category shall be designated as “at will” and no benefits are provided beyond what is mandated by federal, state or local laws, rules or regulations. (e) Higher Acting Appointment: Upon approval of the Appointing Authority, a department/division head may assign a qualified employee to discharge the duties of a higher classification when a position is vacant or in the absence of the incumbent. Government Code section 20480 limits out-of-class appointments of California Public Employees’ Retirement System (CalPERS) members for not more than 960 hours per fiscal year. An out-of-class appointment is defined as an appointment to an upgraded position or higher classification for a permanent appointment in the position to a vacant position during recruitment for a permanent appointment in the position. (f) Transition from Regular Unclassified Appointment to Classified Service Appointment: In the event an employee in the classified service is appointed to a position in the unclassified service the employee shall be re-instated to their former position upon the termination of appointment in the unclassified service, unless so terminated for a cause which would justify dismissal from the classified service. 18.b Packet Pg. 537 Attachment: Attachment 2 - HR.Personnel Rules Attachment 2.Resolution Exhibit A (7050 : Resolution Approving the City's Updated Personnel City of San Bernardino Personnel Rules City of San Bernardino Personnel Rules Page 12 Rule 3 – Probation Purpose: To describe the terms and conditions of probation and probationary periods. 3-1 Probationary Appointment: (a) Objective of Probation: An appointment or promotion to a classified position will not be deemed complete until an applicable period of probation for the position has elapsed. The probationary period is regarded as part of the testing and selection process and will be used for the purpose of determining the person’s performance and fitness for employment in the classified service. (b) Probationary Period: The length of probation will be 2080 hours of employment, except as provided in the applicable Memorandum of Understanding (MOU). The probationary period will begin on the effective date of appointment or promotion. In the event of an illness or injury or other reason requiring an extended absence from work, the length of the probationary period shall be extended automatically by the duration of the absence. A new probationary period is required for: 1) Initial appointment or promotion to a classified position. 2) Appointment of an employee that held regular status in a classified position if more than 12 months have elapsed since voluntary separation. 3) Reinstatement of an employee that had not completed probation prior to separation. A new probationary period will not be required for: 1) Promotion within a “flex series” where there is no competitive process when the department certifies that the employee is successfully performing at the higher level upon flex promotion. 2) Transfer to another position in the same classification. 3) Reinstatement of an employee that held regular status in a classified position and returns to service in the classification held at the time of separation within 12 months of a voluntary separation. 4) Reinstatement of a regular or probationary employee in a classified position within 24 months of a reduction in force, as long as the employee has completed probation in the classification prior to the reduction in force. 5) Reclassification 18.b Packet Pg. 538 Attachment: Attachment 2 - HR.Personnel Rules Attachment 2.Resolution Exhibit A (7050 : Resolution Approving the City's Updated Personnel City of San Bernardino Personnel Rules City of San Bernardino Personnel Rules Page 13 (b) Removal During Probation – During the probationary period, an employee may be discharged or demoted at any time upon the recommendation of the department head in which the probationer is employed with approval of the Appointing Authority without the right of appeal or hearing. (c) Rejection After Promotion – Any employee promoted from a classified position and released during the probationary period will be reinstated to their former position unless charges as defined in Rule 7, Disciplinary Procedures are filed and the employee is dismissed in the manner provided by law and these rules. 18.b Packet Pg. 539 Attachment: Attachment 2 - HR.Personnel Rules Attachment 2.Resolution Exhibit A (7050 : Resolution Approving the City's Updated Personnel City of San Bernardino Personnel Rules City of San Bernardino Personnel Rules Page 14 Rule 4 – Applications and Examinations Purpose: To define the methods used for examination and applicant evaluation to provide a fair and equitable process to determine whether applicants possess the knowledge skills and abilities to perform the duties of the position for which they are applying. 4-1 Requisition: Whenever a vacancy exists the department head shall notify the Human Resources Department on the approved forms, which shall be so designed as to provide all necessary information concerning the nature of the vacancy. 4-2 Announcement: All examinations for classifications in the classified service shall be announced on official bulletin boards and in such other manner as the designee of the Appointing Authority and affected departments find advisable and necessary to attract the largest number of qualified candidates. The announcements shall specify the title and pay range for the class for which the examination is announced; the nature of the work to be performed; qualifications required; the time, place and manner of making application; the general scope of the examination; and other pertinent information. 4-3 Testing: Upon the recommendation of the Human Resources Department, the Appointing Authority may establish and approve recommended general requirements appropriate to each class for which examinations are held to determine applicant qualifications. No examination shall be closed to any applicant on the basis of race, religious creed, disability, medical condition, genetic information, marital status, sex, gender, gender identity, gender expression, age (40 and over), sexual orientation, or military and veteran status or other basis protected by law, except where specific requirements constitute a bona fide occupational qualification. All tests shall be carried out in accordance with merit principles and in compliance with applicable state and federal laws/regulations. All testing procedures shall be conducted in accordance with accepted merit principles, Equal Employment Opportunity Commission (EEOC) guidelines on employee selection and applicable Federal and State Laws. The steps in the selection process may include any of the following: • Screening of employment applications for minimum qualifications. Each candidate’s application is reviewed and compared to the minimum qualifications listed in the job description. • Further screening of applications and/or supplemental questionnaires or documents for job-related qualifications. Candidates which meet the minimum qualifications are further reviewed to determine which candidates are the most qualified as well as meet the desirable qualifications of the position. • Administration of a job related written examination. Examinations are applied to measure the knowledge, abilities, judgements, and aptitudes that are related to the ability to perform the work in the class for which the exam is being held. Written examinations do not apply to all positions. 18.b Packet Pg. 540 Attachment: Attachment 2 - HR.Personnel Rules Attachment 2.Resolution Exhibit A (7050 : Resolution Approving the City's Updated Personnel City of San Bernardino Personnel Rules City of San Bernardino Personnel Rules Page 15 • Administration of a job related performance examination. Performance examinations evaluate speed, accuracy, or other standards of performance in an actual demonstration of samples of work in the position. Performance examinations do not apply to all positions. • Administration of interviews. The most competitively qualified candidates will be invited to participate in a structured interview process. Qualified interview panel members will assess each candidate’s knowledge, skills, abilities, education, and experience as it relates to the position. • Coordination of an appropriate medical screening or examination after a job offer has been made. The exam type is dependent upon the classification and the type of work that will be performed. • Investigation of references and background information, including criminal records of individual candidates in keeping with state and federal laws/regulations. The Human Resources Department may call upon subject matter experts from within or outside City employment for assistance in developing and/or administering any of the testing procedures. Consideration in determining the appropriate selection device shall include cost to the City and candidates, time constraints, legality of the process, and practicality. 4-4 Eligible List: Upon the completion of all phases of an examination, the designee of the Appointing Authority shall establish an eligible list. When applicable, the Appointing Authority may rank the candidates according to their scores in the various parts of the examination, and the relative weights thereof, with credit for any other preference or credit authorized by the Municipal Code or these rules. 4-5 Notification of Results: Each candidate taking an examination shall be given written notice of the pass or fail results of the examination or test. Each failing candidate may inspect their score sheet, beginning on the second business day following the mailing of notice of test results, and continuing for five (5) business days thereafter. During this period, appeals in writing will be accepted challenging the scoring of answers on the grounds of fraud or mistake, but a further appeal shall not be made challenging the keyed test material, the content of the examination or the answers. The designee of the Appointing Authority shall rule upon such appeals and the final score of the examinee shall be made to conform to that decision. 4-6 Use of Appropriate List: When there is no re-employment list, promotional list, eligible list or transfer list for a class for which a requisition has been received, at the discretion of the Human Resources Department, and upon the request of the recruiting department, Human Resources may use the list for any other class which is nearly enough related to be considered as appropriate. In such case the re-employment or promotional list for such class shall be treated in the same way as though they were eligible lists for such class to which certification is made. Any waiver made by an eligible certified from an 18.b Packet Pg. 541 Attachment: Attachment 2 - HR.Personnel Rules Attachment 2.Resolution Exhibit A (7050 : Resolution Approving the City's Updated Personnel City of San Bernardino Personnel Rules City of San Bernardino Personnel Rules Page 16 appropriate list shall be deemed to apply to that particular certification only. 18.b Packet Pg. 542 Attachment: Attachment 2 - HR.Personnel Rules Attachment 2.Resolution Exhibit A (7050 : Resolution Approving the City's Updated Personnel City of San Bernardino Personnel Rules City of San Bernardino Personnel Rules Page 17 Rule 5 – Employment Lists Purpose: To define the establishment of re-employment, promotional, transfer and eligibility lists, the duration of employment lists and the terms associated with disqualification and removal of names from an employment list. 5-1 Re-employment List: A re-employment list shall be established for a class whenever any regular classified employee has been laid off for lack of work or lack of funds, or upon the abolishment of a position for any reason not involving the fault or delinquency of the employee. Names shall be arranged on a re-employment list in the order of relative total length of probationary and regular service in the class. The name of a person on a re-employment shall remain for a period of 24 months from the date the individual was placed on the list, unless sooner removed by appointment or removal pursuant to this Rule. Wherever a re-employment list exists for a class, it shall take precedence over the promotional list and the eligible list. 5-2 Transfer List: The designee of the Appointing Authority may maintain lists of employees who wish to transfer to another department. When a vacancy occurs to which any regular or probationary employee has asked for transfer and is qualified, the designee of the Appointing Authority may, with the consent of the two department heads concerned, arrange for such transfer in preference to certification from any eligible list. The name of a person on a transfer list shall remain for a period of 24 months from the date the individual was placed on the list, unless sooner removed by appointment or removal pursuant to this Rule. 5-3 Promotional List: Promotional lists shall be established as a result of promotional examinations held by themselves or in conjunction with open examinations, and such lists shall take precedence for any class over the open eligible list for that class. Promotional lists shall remain in effect for a period of 24 months after the list is established, unless the list is exhausted by appointment or removal pursuant this Rule. A promotional list may be extended by the Appointing Authority for an additional period of time not to exceed 24 months upon the recommendation of Human Resources or the Department Head. 5-4 Open List: Eligible lists resulting from open competitive examinations shall be used when other lists having priority are not available. Open eligible lists shall remain in effect for a period of 12 months or such shorter period as may be established by the Appointing Authority at the time of determining the examination procedure to be used for that particular classification. An open eligible list may be extended by the Appointing Authority for an additional period of time not to exceed 12 months upon the recommendation of Human Resources or the Department Head. 18.b Packet Pg. 543 Attachment: Attachment 2 - HR.Personnel Rules Attachment 2.Resolution Exhibit A (7050 : Resolution Approving the City's Updated Personnel City of San Bernardino Personnel Rules City of San Bernardino Personnel Rules Page 18 5-5 Certification and Combination of Lists: At any time during the life of an eligible list the designee of the Appointing Authority may add names to the list through giving another examination. The names shall be added and merged with the existing lists in order of final ratings of those added and those already on the list. In the event that there are fewer than three (3) persons qualified for certification for the class in which a position belongs, the designee of the Appointing Authority may certify fewer than three (3) names for the position under consideration. 5-6 Disqualification and Removal: Names on an eligible list may be removed after review by the designee of the Appointing Authority for any of the following reasons: (a) Conviction history of an individual that the City has determined, after conducting an individualized assessment, has a direct or adverse relationship with the specific duties of the job. (b) Proof of fraud or false statements in the application, or proof of fraudulent conduct in connection with an examination. (c) Appointment to a position in the class for which the eligible list was established or for which the list is deemed suitable by the designee of the appointing authority. (d) Separation from the service of an individual on a promotional or transfer list for any reason. (e) Separation from the service due to termination for cause or resignation in lieu of disciplinary action. (f) Discharge during probation from a job classification held at the time of release shall result in removal of the probationary employee’s name from the eligibility list that specifically pertains to the job classification for which the employee was released. (g) Failure to meet pre-employment medical examination and/or background investigation requirements. (h) Failure to appear or to arrange for an interview within a reasonable time after notification of certification, or failure to appear for work after appointment. (i) Failure to respond to documented City inquiries. (j) Declination of appointment. 18.b Packet Pg. 544 Attachment: Attachment 2 - HR.Personnel Rules Attachment 2.Resolution Exhibit A (7050 : Resolution Approving the City's Updated Personnel City of San Bernardino Personnel Rules City of San Bernardino Personnel Rules Page 19 Rule 6 – Resignation, Job Abandonment, Reduction in Force, Demotion, Transfer and Reinstatement Purpose: To define the conditions for and benefits associated with a resignation, job abandonment, reduction in force, demotion, transfer (interdepartmental and intra departmental) and reinstatement. 6-1 Resignation: An employee may resign in good standing from the City service by filing a statement of his/her intention with the Department Head. The employee shall provide the City at least a two (2) week notice period before the effective date of the resignation. The Director of Human Resources or Department Head may accept a resignation letter submitted with less than a two (2) week notice period. The resignation shall be forwarded to Human Resources. Once the resignation is accepted by Human Resources, it is final and cannot be revoked by the employee without approval of the appointing authority. If a resignation is submitted to avoid disciplinary action, the Department Head shall accept it with prejudice and such record shall bar the employee from reinstatement or from participation in further examinations. 6-2 Job Abandonment: Absence from duty without authorization for three (3) successive scheduled working days is deemed a resignation from service as of the last day on which the employee worked or was on authorized leave. The employee will be issued a written notice of intent to separate due to job abandonment including the reason(s) for the separation and the process for response either orally or in writing within five (5) working days after the notice is mailed. If an oral or written response to provide an explanation for the unauthorized absence is not submitted within five (5) working days the resignation will be deemed final. An employee separated from City service for job abandonment shall not have the right to a post-separation appeal. If the employee proves the absence was caused by illness, injury, or an emergency which made reporting to work impossible, to the satisfaction of the appointing authority, the appointing authority may reinstate the employee into the position. 6-3 Reduction in Force: When it becomes necessary through lack of work or lack of funds or for other reasons to reduce the number of employees within a given class, the appointing power shall present evidence to the Director of Human Resources that every effort has been made to transfer, demote, temporarily appoint or undertake other action to retain permanent employees in lieu of a lay-off. The department head shall give at least two (2) working days advance notice to the Director of Human Resources of the titles, classes and number of positions involved. The Director of Human Resources shall thereupon designate the order of layoff in accordance with this rule and the department head shall process the necessary personnel actions. Emergency, temporary and provisional employees shall be laid off in that order prior to the lay-off of permanent employees in the same class. The order of layoffs shall thereafter be determined by seniority. Seniority of employees for purposes 18.b Packet Pg. 545 Attachment: Attachment 2 - HR.Personnel Rules Attachment 2.Resolution Exhibit A (7050 : Resolution Approving the City's Updated Personnel City of San Bernardino Personnel Rules City of San Bernardino Personnel Rules Page 20 of reduction in force or transfers and demotion brought about by said reduction in force shall be based on seniority in class with the department so that the employee with the shortest term of service within the department shall be the first to be transferred, demoted or laid off. However, any employee who has or shall be transferred involuntarily or who was or shall be transferred upon written initiating notice to the Director of Human Resources by, or at the behest or initiation of, an appointing power or department head for the benefit of the City to a position in another department shall retain the seniority earned and accrued in the class in the department from which the employee was or shall be transferred. In the event more than one employee is transferred, demoted or laid off, such transfers, demotions or layoffs shall be in inverse order to the length of service in the class, provided, however, no employee shall be transferred or demoted to a class, title or position in which the employee has not previously held status. In a department where there is more than one class having equal rates of compensation, any probationary or regular employee subject to lay-off under this rule shall, in lieu thereof, be allowed to transfer to a position in one of the other classes of equal compensation, in which the employee has previously held status, provided that the employee subject to lay-off has longer service in class than the employee displaced has in the class. To be considered for said transfer in lieu of lay-off, an employee must notify the appointing power in writing of such election not later than the end of the next working day that the Human Resources Office is open, after receiving written notice of said lay- off. Any probationary or regular employee subject to lay-off under this rule shall in lieu thereof be allowed a demotion to the next lower class within the department in which the employee subject to lay-off has previously held status, and shall become the senior employee in that class for the purpose of this rule; provided, however, that in the first grade or lowest class within a department, total time in service shall be the only criteria to be considered in determining which employee shall be laid-off. To be considered for said demotion in lieu of lay-off, an employee must notify the appointing power in writing of such election not later than the next working day that the Human Resources Office is open, after receiving written notice of said lay-off. If an employee subject to lay-off displaces another employee in an equal or lower class in a position in which said employee subject to lay-off has served, but not completed the required probationary period, such appointment shall be on a probationary basis Not later than the end of the probationary period, said employee shall either become regular in this position or be allowed to displace an employee in the next lower class in which the employee has previously held status. Any employee displaced hereunder shall have the same right to displace employees in equal or lower classes as does an employee subject to layoff. Any employee laid off or demoted to a lower class or transferred to an equal class under this rule shall have the right for two (2) years to be reemployed, transferred or promoted to the former class upon the first vacancy occurring in any such class in the department and such right shall take precedence over the regular employment or promotional lists. In the event more than one employee was so laid off, demoted or transferred from such class the rights to re-employment, transfer or 18.b Packet Pg. 546 Attachment: Attachment 2 - HR.Personnel Rules Attachment 2.Resolution Exhibit A (7050 : Resolution Approving the City's Updated Personnel City of San Bernardino Personnel Rules City of San Bernardino Personnel Rules Page 21 promotion to such class shall be in the order of seniority in said class before lay-off, transfer or demotion. If, at any point in the above described procedure, it becomes evident that two or more employees within the same classification possess the exact and same seniority rights under this rule, the following method shall be used to determine the order of lay-off. 1. The department head shall review all personnel records including probationary and/or annual employee evaluation reports, letters of commendation or reprimand and such other information as may assist him in making a final determination. The department head’s review shall be objective in nature and free of any personal bias or consideration. After such review and based upon work performance and the good of the service, the department head shall establish the final order of lay-off. 2. In the event two or more employees within the same classification are determined to be equal, based upon the above criteria, the time and date of filing application for appointment to the position shall be used. The last employee to have filed application for appointment to the position shall be the first employee subject to lay-off. Any employee laid off, transferred or demoted under this rule shall have the right of appeal to the appointing authority based upon misinterpretation or improper application of said rule in writing, not later than the end of the next working day, that the Human Resources office is open, after receiving written notice of said lay-off. Any employee laid off, transferred or demoted under this rule shall have the right of appeal to the appointing authority based upon misinterpretation or improper application of said rule in writing, not later than the end of the next working day, that the Human Resources office is open, after receiving written notice of said lay-off 6-4 Voluntary Demotion: An employee may at any time request a voluntary demotion to a lower classification, provided there is a vacancy and the employee meets the employment requirements for the position. Such demotion will require approval from the Appointing Authority. 6-5 Transfer: An employee may be transferred by the Appointing Authority at any time from one position to another position in the same or comparable class. Transfers shall not be used to effectuate a promotion, demotion, advancement or reduction, each of which may be accomplished only as provided in these rules. No person shall be transferred to a position for which he/she does not possess the required employment standards. In the case of transfers between departments, the approval of both Department Heads shall be required unless the Appointing Authority orders the transfer for purposes of economy or efficiency. 6-6 Reinstatements: (a) Voluntary Separations: Upon approval of the Appointing Authority, a probationary or regular employee who voluntarily resigned from City service may be 18.b Packet Pg. 547 Attachment: Attachment 2 - HR.Personnel Rules Attachment 2.Resolution Exhibit A (7050 : Resolution Approving the City's Updated Personnel City of San Bernardino Personnel Rules City of San Bernardino Personnel Rules Page 22 reinstated to a position in the same classification held at the time of separation if there is a need for his or her services within 12 months of separation. Such employee must meet the current minimum qualifications for the position. The degree of City provided benefits that an individual shall receive is determined by the status of the employee (probationary or regular) and the length of time elapsing between the effective date of termination and the date of re-employment to exclude the period of time not employed by the City. State retirement system benefits shall be handled in accordance with existing California Public Employee’ Retirement System (CalPERS) policies. As a condition of reinstatement, the City may, at its sole discretion, require the employee to pass a background check and medical examination, including a drug screen. 1) Reinstatement of a Regular Employee: A former regular employee reinstated within 12 months of separation shall be entitled to the same vacation accrual rate attained immediately prior to separation. Reinstatement shall be at the salary step previously held. Recognition of prior service for the purposes of determining length of service with the City (seniority) shall exclude the time not employed by the City. The review date for performance reviews and/or merit increase shall be extended by the period of time equal to the period of absence from City employment. 2) Reinstatement of a Probationary Employee: A former probationary employee reinstated within 12 months of separation shall be considered for employment without having to re-qualify through the competitive examination process. Reinstatement shall be at the salary step previously held. The former probationary employee returning within this timeframe shall receive benefits as a new employee and a new probationary period shall be required. (b) Employees Laid Off, Demoted or Transferred due to a Reduction in Force: A probationary or regular classified employee who has been laid off, transferred or demoted as a result of a reduction in force shall have the right to be reinstated to his/her former position in the department for up to 24 months from the date of layoff, demotion or transfer. The order of reinstatement will be based upon total length of probationary and regular service in classification in the department. Whenever a reduction in force reinstatement list exists for a classification, it shall take precedence over all other employment lists. 18.b Packet Pg. 548 Attachment: Attachment 2 - HR.Personnel Rules Attachment 2.Resolution Exhibit A (7050 : Resolution Approving the City's Updated Personnel City of San Bernardino Personnel Rules City of San Bernardino Personnel Rules Page 23 Rule 7 – Disciplinary Procedures Purpose: To define the basis for disciplinary action, the types of discipline and the appeal and hearing procedures. 7-1 Disciplinary Actions: A regular classified employee may be disciplined by dismissal, suspension, demotion, or reduction in rank or compensation in accordance with this Rule and the applicable Memorandum of Understanding (MOU). 7-2 Causes: Disciplinary actions shall not be taken except for cause related to performance of duty, personal conduct or qualifications of the employee, which causes may include but are not limited to: (a) Working or being under the influence of alcohol or any controlled substances while on duty. (b) Conviction, meaning any judicial determination of guilt, of a crime that has a nexus to the employee’s job duties. (c) Discourteous treatment of the public (d) Dishonesty (e) Failure of good behavior or acts during or outside of duty hours, which are incompatible with or inimical to the public service (f) Any conduct that impairs, disrupts or causes discredit to the City, to the public service, or other employee’s employment (g) Falsification of official documents (h) Fraud in securing employment (i) Improper or unauthorized use of City property (j) Incompetency, inefficiency and/or Inability to perform (k) Insubordination (l) Inexcusable or excessive absence from the City and/or violation of any sick leave provisions of the City (m) Neglect of duty (n) Political activities precluded by Local, State or Federal law (o) Unsafe act 18.b Packet Pg. 549 Attachment: Attachment 2 - HR.Personnel Rules Attachment 2.Resolution Exhibit A (7050 : Resolution Approving the City's Updated Personnel City of San Bernardino Personnel Rules City of San Bernardino Personnel Rules Page 24 (p) Violation of the Charter, Municipal Code, ordinances, resolutions, or any rules, regulations or policies which may be prescribed by the City Council, the Appointing Authority, the Department Director, Manager or Supervisor. 7-3 Pre-Disciplinary Procedures: Before discipline can become effective, an employee in the classified service shall receive the following: (a) Notice of Intent: Notice of proposed disciplinary action and effective date. (b) Causes: The causes for the proposed disciplinary action. (c) Charges: A copy of all charges and all materials upon which the charges are based including a description of the discipline proposed, any rules, regulations, or laws that are alleged to have been violated, a description of the facts that show the elements of each charge at issue, and the reasons for which the action has been proposed. If applicable, a description of any previous disciplinary actions, counseling, evaluations, or other relevant actions which support the proposed action. (d) Response: The right to respond orally and/or in writing and the time within which to respond at least seven (7) working days from receiving the notice of proposed disciplinary action. Failure to respond within the specified timeframe constitutes waiver of the right to respond prior to the final discipline being imposed and no further administrative remedy shall be available. (e) Representation: An employee has the right to representation throughout the pre- disciplinary and disciplinary appeals process. 7-4 Notice of Decision and Charges: Notice of a final decision, charges and all supporting facts and materials shall be presented to the employee within five (5) working days of the employee’s response. When discipline is imposed, the notice of decision shall include a statement informing the employee of his/her right to appeal the action to the Personnel Commission. A copy of such notice and charges shall at the same time be filed with the Secretary to the Personnel Commission. 7-5 Personnel Commission Hearing: An employee in the classified service shall have a right to appeal a disciplinary action before the Personnel Commission, subject to the provisions of the applicable labor agreement, if any. (a) Hearing Request: The hearing request shall be filed by the employee, or a representative of the employee, with the Secretary to the Personnel Commission within five (5) working days of receiving the notice of decision and charges. (b) Hearing Date: The hearing request shall be submitted to the Personnel Commission at their next regular meeting for establishment of a hearing date. A 18.b Packet Pg. 550 Attachment: Attachment 2 - HR.Personnel Rules Attachment 2.Resolution Exhibit A (7050 : Resolution Approving the City's Updated Personnel City of San Bernardino Personnel Rules City of San Bernardino Personnel Rules Page 25 date for the appeal hearing shall be set within a reasonable time after the employee files his or her reply. The City shall notify the employee at least 21 days prior to the hearing of the scheduled date. (c) Hearing: At the hearing the Commission shall hear evidence on behalf of the person bringing the charges and the employee. The parties may be represented by counsel, but the hearing shall be conducted informally and shall not be bound by formal rules of evidence. The hearing will be recorded to preserve an accurate, reliable record of the proceedings and the preponderance of the evidence will be used as the standard of proof. At the discretion of the Commission, the hearing may be continued from time to time upon request by either party for good cause. Upon completion of the hearing, the Commission may take the matter under submission with or without request for further written summary of the evidence or arguments by the parties. (d) Hearing Decision: Within 30 days after taking a disciplinary case under submission, unless the time is further extended by mutual agreement of the parties, the Personnel Commission, by majority vote of all members present, shall render a decision affirming, modifying or reversing the disciplinary action identified in the notice and charges. In the event the decision modifies or reverses the action sought, the Commission shall determine the effect of such decision. All decisions of the Commission in disciplinary matters shall be final. A copy of the final written findings and decision shall be mailed with proof of service to the employee. 18.b Packet Pg. 551 Attachment: Attachment 2 - HR.Personnel Rules Attachment 2.Resolution Exhibit A (7050 : Resolution Approving the City's Updated Personnel City of San Bernardino Personnel Rules City of San Bernardino Personnel Rules Page 26 Rule 8 – Definition of Terms Purpose: Define terms and phrases referenced in the Personnel Rules Appointment - The designation of a person by due authority to become an employee in a position and his/her induction into employment in such position, as provided in these rules. Appointing Authority - The officers of the City who as individuals, or as a Board or Commission, have the final authority to make the appointment to a position to be filled. Commission - The Personnel Commission established by the City Charter. Certify - Review and verify that the matter is in compliance with the Personnel Rules and Regulations. Charter - The City Charter of the City of San Bernardino. City - The City of San Bernardino, California. Class - A group of positions enough alike in duties, authority and responsibility to permit grouping under a common title, and the use of common standards of selection, transfer, promotion and pay. Classified Service - Includes all positions not specifically identified as unclassified within the Municipal Code, Chapter 2.04. Council - The City Council of the City of San Bernardino. Demotion - A change in employment status from one class to another class having a lower salary range. Department Head - The person designated by the Appointing Authority to direct the activity of a department or other recognized separate office or agency of the City government. Eligible – A person whose name is on a re-employment list, promotional list or eligible list and who is not ineligible for appointment for any reason. Eligible List - A list of persons who have qualified for appointment to any position in a class in the classified service, listed in the order provided in these rules. Examination - A test or group of tests and evaluations used to determine the eligibility and rank candidates for employment in a class. 18.b Packet Pg. 552 Attachment: Attachment 2 - HR.Personnel Rules Attachment 2.Resolution Exhibit A (7050 : Resolution Approving the City's Updated Personnel City of San Bernardino Personnel Rules City of San Bernardino Personnel Rules Page 27 Marital-Type Relationship: Two or more people living together in a family relationship without legal or blood ties. Probation Period - A working test period during which an employee is required to demonstrate his/her fitness for the class to which he/she is appointed by actual performance of the duties of his position. Probationary Status - The status of any employee who has been regularly appointed from an eligible list but who has not completed the probationary period. Promotion - A change in employment status from one class to another with a higher salary range. Promotional Examination - An examination in which competition is limited to regular employees in specified lower classes in the classified service. Promotional List - An eligible list resulting from a promotional examination. Provisional Status - An employee who has been appointed to fill a position for which no eligible list exists and which is limited as prescribed in these rules. Re-Employment List - A list of regular or probationary employees who have been laid off for lack of work, lack of funds or other causes not involving fault or delinquency on their part. ( Regular Employee - An employee who has successfully completed their probationary period and has been retained as provided in these rules. Relative - Any individual related by blood, marriage, marital-type relationship, or domestic partnership, within the third degree. Seasonal Position - A full-time or part-time position that requires or is likely to require the services of an incumbent during certain parts of the year, or recurring annually, or at other periods. Suspension - The temporary separation of an employee from the service without pay for disciplinary purposes. Temporary Position - Any position which requires the services of an incumbent for a limited period only, or a regular position which can be filled only on a temporary basis pending the return of a regularly appointed employee who is on authorized leave. 18.b Packet Pg. 553 Attachment: Attachment 2 - HR.Personnel Rules Attachment 2.Resolution Exhibit A (7050 : Resolution Approving the City's Updated Personnel City of San Bernardino Personnel Rules City of San Bernardino Personnel Rules Page 28 Test - Any written, oral, performance or physical exercise or any appraisal of training, experience, work history or other means by which the relative qualifications of applicants are evaluated for the purpose of determining their placement on an eligible list. Transfer - A change of an employee from one position to another position in the same class or in another class having similar duties, essentially the same range of pay and similar employment standards. Unclassified Service - All positions identified as unclassified in the City of San Bernardino’s Municipal Code, Chapter 2.04. 18.b Packet Pg. 554 Attachment: Attachment 2 - HR.Personnel Rules Attachment 2.Resolution Exhibit A (7050 : Resolution Approving the City's Updated Personnel 1 | Page Prepared: 2/10/2020 City of San Bernardino Personnel Rules – Current and Proposed Current Proposed Action Notes Chapter 1 – Definition of Terms Rules 100-137 Rule 8 – Definition of Terms Delete Rules 101,104, 109, 115, 117, 118, 119, 135 and 137 Rule 109 – Competitive Class, Rule 117 – Labor Class, Rule 135 Uncompetitive Class, and Rule 137 pertain to the provisions of Section 248 of the former City Charter. Rule 101- Allocation, Rule 104 – Board, Rule 115 – Emergency Employee, Rule 118 – Permanent Position and Rule 119 -Position define terms that do not apply to the proposed Personnel Rules. Chapter 2 – Rules Affecting the Organization & Operating Procedures Not Included in proposed Personnel Rules Delete Addressed in the Municipal Code, Resolution 2014-246 (California Records Retention Schedule), or job specification for the designee of the Appointing Authority. Rule 300 – Announcement of Examinations Rule 4-2 No substantive change Rule 301 – General Requirements Rule 4-3 Combined Rules 301-314 consolidated to simplify and ensure compliance with all State and Federal laws/regulations Rule 302 – Medical and Physical Standards Rule 4-3 Combined Rules 301-314 consolidated to simplify and ensure compliance with all State and Federal laws/regulations Rule 303 – Other Entrance Requirements Rule 4-3 Combined Rules 301-314 consolidated to simplify and ensure compliance with all State and Federal laws/regulations Rule 304 – Applications Rule 4-3 Combined Rules 301-314 consolidated to simplify and ensure compliance with all State and Federal laws/regulations Rule 305 – Qualification and Disqualification Rule 4-3 Combined Rules 301-314 consolidated to simplify and ensure compliance with all State and Federal laws/regulations Rule 306 – Time and Place of Examination Rule 4-3 Combined Rules 301-314 consolidated to simplify and ensure compliance with all State and Federal laws/regulations Rule 307 – Participation in tests Rule 4-3 Combined Rules 301-314 consolidated to simplify and ensure compliance with all State and Federal laws/regulations 18.c Packet Pg. 555 Attachment: Attachment 3 - HR.Personnel Rules.Attachment 3.Exhibit B (7050 : Resolution Approving the 2 | Page Prepared: 2/10/2020 Current Proposed Action Notes Rule 308 – Content of Examination Rule 4-3 Combined Rules 301-314 consolidated to simplify and ensure compliance with all State and Federal laws/regulations Rule 308.1 – Written Test Rule 4-3 Combined Rules 301-314 consolidated to simplify and ensure compliance with all State and Federal laws/regulations Rule 308.2 – Oral Test Rule 4-3 Combined Rules 301-314 consolidated to simplify and ensure compliance with all State and Federal laws/regulations Rule 308.3 – Performance Test Rule 4-3 Combined Rules 301-314 consolidated to simplify and ensure compliance with all State and Federal laws/regulations Rule 308.4 – Medical Test Rule 4-3 Combined Rules 301-314 consolidated to simplify and ensure compliance with all State and Federal laws/regulations Rule 308.5 – Physical Test Rule 4-3 Combined Rules 301-314 consolidated to simplify and ensure compliance with all State and Federal laws/regulations Rule 308.6 – Experience and Training Rule 4-3 Combined Rules 301-314 consolidated to simplify and ensure compliance with all State and Federal laws/regulations Rule 309 – Waiver of Disability Rule 4-3 Rule deleted previously Rule 310 – Conduct of Examination Rule 4-3 Combined Rules 301-314 consolidated to simplify and ensure compliance with all State and Federal laws/regulations Rule 311 – Scoring and Standards Rule 4-3 Combined Rules 301-314 consolidated to simplify and ensure compliance with all State and Federal laws/regulations Rule 312 – Promotional Examinations Rule 4-3 Combined Rules 301-314 consolidated to simplify and ensure compliance with all State and Federal laws/regulations Rule 313 – Inspection and Appeal Rule 4-3 Delete Rules 301-314 consolidated to simplify and ensure compliance with all State and Federal laws/regulations Rule 314 – Veteran Preference Rule 4-3 Delete Rules 301-314 consolidated to simplify and ensure compliance with all State and Federal laws/regulations Rule 315 – Eligible List Rule 4-4 No substantive change Rule 316 – Notification of Results Rule 4-5 No substantive change Rule 317 – Qualifications for other Government Employees Not Included in proposed Personnel Rules Delete Recommend assessing all candidates entering service with the City of San Bernardino based upon job classification regardless of service with another government agency 18.c Packet Pg. 556 Attachment: Attachment 3 - HR.Personnel Rules.Attachment 3.Exhibit B (7050 : Resolution Approving the 3 | Page Prepared: 2/10/2020 Current Proposed Action Notes Rule 400 – Information Required from Eligibles Not Included in proposed Personnel Rules Delete Clean up item, no longer needed in Personnel Rules. Rule 401 – Kinds of List and Order of Use Not Included in proposed Personnel Rules Delete Clean up item, no longer needed in Personnel Rules. Rule 401.1 – Re- employment Lists Rule 5-1 No substantive change Rule 401.2 – Promotional Lists Rule 5-3 No substantive change Rule 401.3 – Eligible Lists Rule 5-4 No substantive change Rule 401.4 – Transfer Lists Rule 5-2 No substantive change Rule 402 – Requisition Rule 4-1 No substantive change Rule 403 – Certification Rule 5-5 Combined Combined with Rule 410 - Combination of Lists Rule 404 – Effect of Tie Scores Rule 4-3 Combined Combined with Rule 315 – Eligible List Rule 405 – Waiver Not Included in proposed Personnel Rules Delete Clean up item, no longer needed in Personnel Rules. Rule 406 – Use of Appropriate List Rule 4-6 No substantive change Rule 407 – Provisional Appointment Rule 2-2 (c) 1 Modified Combined with Rule 504. Extended timeframe for appointment beyond the establishment of an eligibility list from 10 to 90 days to allow time for candidate selection and hiring Rule 408 – Appointment Rule 2-2 (a) No substantive change Rule 409 – Term of List Rule 5-4 Combined Combined with Rule 401.1, 401.2, 401.3 & 401.4 Rule 410 – Combination of Lists Rule 5-5 No substantive change Rule 411 – Disqualification and Removal Rule 5-6 Modified Disqualification due to conviction history tied to relationship to the position for which the application is made. Rule 412 – Restoration of Not Included in proposed Delete Clean up item, no longer needed in Personnel Rules. 18.c Packet Pg. 557 Attachment: Attachment 3 - HR.Personnel Rules.Attachment 3.Exhibit B (7050 : Resolution Approving the 4 | Page Prepared: 2/10/2020 Current Proposed Action Notes Names to Eligible Lists Personnel Rules Rule 413 – Emergency Appointment Not Included in proposed Personnel Rules Delete Addressed in Rule 2-1 (a) and 2-2 (c) Temporary Positions/Appointments Rule 414 – Oath Not Included in proposed Personnel Rules Delete Clean up item, no longer needed in Personnel Rules. Rule 415 – Assignments Rule 2-2 (e) Modified Added CalPERS 960 hour limit Rule 500 – Probationary Appointments Rule 3 Modified Sets a standard 2080 hour (12 month) probationary period for all classified employees. Language added to clarify when a new probationary period is required. A provision was added to require a new probationary period for an employee that voluntarily separates from service during his/her probationary period and is reinstated within 12 months of separation. Rule 500.1 – Objective of Probation Rule 3 (a) No substantive change Rule 500.2 – Removal During Probation Rule 3 (c ) No substantive change Rule 500.3 – Rejection After Promotion Rule 3 (d) No substantive change Rule 501 – Career Appointments Rule 2 Combined Combined with Rule 502 and 503 Rule 502 – Non-Career Appointments Rule 2 Combined Combined with Rule 501 and 503 Rule 502.1 – Transition from Non Career to Career Appointment Not Included in proposed Personnel Rules Delete Clean up item, no longer needed in Personnel Rules. Rule 502.2 – Transition from temporary agency, private contractor to Career Appointment Not Included in proposed Personnel Rules Delete Clean up item, no longer needed in Personnel Rules. Rule 503 – Seasonal Appointments Rule 2 Combined Combined with Rule 501 and 502 18.c Packet Pg. 558 Attachment: Attachment 3 - HR.Personnel Rules.Attachment 3.Exhibit B (7050 : Resolution Approving the 5 | Page Prepared: 2/10/2020 Current Proposed Action Notes Rule 504 – Provisional Appointments Rule 2-2 (c ) Combined Combined with Rule 407. No substantive change made to the provisions in Rule 504. Rule 505 – Appointment to Unclassified Service Rule 2-2 (f) No substantive change Rule 506 – Continuity of Service Not Included in proposed Personnel Rules Delete Clean up item, no longer needed in Personnel Rules. Rule 507 – Unauthorized Absence: Resignation from Service 6-2 No substantive change Consolidated text and removed references to the allowable reasons for reinstatement, the Fire Department and appeal hearing before the Civil Service Board. Rule 508 – Promotion Rule 4-12 Combined Combined with Rule 312 Rule 509 – Transfer Rule 6-5 Modified Added language to clarify that transfers can be required by the appointing authority Rule 510 – Voluntary Demotion Rule 6-4 No substantive change Rule 511 – Reduction in Force Rule 6-3 No substantive change Rule 512 – Summary Suspension Not Included in proposed Personnel Rules N/A Rule deleted previously Rule 513 - Disciplinary Actions Rule 7 Modified Removed language pertaining to physical or mental disability as grounds for discipline Rule 513.1 - Causes Rule 7-2 Modified Rule 513.2 - Charges to be filed Rule 7-3 & 7-4 Modified Added language to distinguish between pre-disciplinary and disciplinary procedures Rule 513.3 - Reply Rule 7-3 & 7-4 Modified Added language to distinguish between pre-disciplinary and disciplinary procedures Rule 513.4 - Hearing Rule 7-5 Modified Reformatted and added language to include timeframe for submitting hearing request Rule 513.5 - Decision Rule 7-5 (d) No substantive change Rule 514 - Resignation Rule 6-1 Modified Added language to include a two week notice period. Resignation cannot be revoked without approval of 18.c Packet Pg. 559 Attachment: Attachment 3 - HR.Personnel Rules.Attachment 3.Exhibit B (7050 : Resolution Approving the 6 | Page Prepared: 2/10/2020 Current Proposed Action Notes appointing authority Rule 515 - Reinstatement Rule 6-6 Modified Combined with Rules 401-1 and 511. Added language to require new probationary period for employee that voluntarily separates during probationary period and returns to service within 12 months. No provision included for retention of an employee on an open eligibility list for a period beyond 12 months of separation. Rule 516 – Political Activities Rule 1-3 Combined Combined under a general provision for conflicts of interest in Rule 1-3 Rule 516.1 – Participation in Campaigns for Elective Office Rule 1-3 Combined Combined under a general provision for conflicts of interest in Rule 1-3 Rule 516.2 – Solicitation of Political Funds Rule 1-3 Combined Combined under a general provision for conflicts of interest in Rule 1-3 Rule 516.3 – Permitted Solicitation Rule 1-3 Combined Combined under a general provision for conflicts of interest in Rule 1-3 Rule 516.4 – Prohibition of Entry for Prohibited Solicitations Rule 1-3 Combined Combined under a general provision for conflicts of interest in Rule 1-3 Rule 516.5 – Use of Official Authority for Political Purposes Rule 1-3 Combined Combined under a general provision for conflicts of interest in Rule 1-3 Rule 516.6 – Political Activity While in Uniform Rule 1-3 Combined Combined under a general provision for conflicts of interest in Rule 1-3 Rule 517 – Incompatible Employment Rule 1-3 Combined Combined under a general provision for conflicts of interest in Rule 1-3 Rule 518 – Residence Not Included in proposed Personnel Rules Delete Clean up item, no longer needed in Personnel Rules. Rule 600 – Cooperation by Others Not Included in proposed Personnel Rules Delete Clean up item, no longer needed in Personnel Rules. Rule 601 – Investigation: Subpoena Power Not Included in proposed Personnel Rules Delete Addressed in Chapter 2.50 of the Municipal Code. Rule 602 – Payroll Not Included in proposed Deleted Related to former City Charter Section 258 18.c Packet Pg. 560 Attachment: Attachment 3 - HR.Personnel Rules.Attachment 3.Exhibit B (7050 : Resolution Approving the 7 | Page Prepared: 2/10/2020 Current Proposed Action Notes Certification Personnel Rules Rule 604 – Meaning of Headings Not Included in proposed Personnel Rules Deleted Clean up item, no longer needed in Personnel Rules. Rule 605 –Validity and Separability Not Included in proposed Personnel Rules Deleted Clean up item, no longer needed in Personnel Rules. Rule 606 – Repeal of Conflicting Rules Not Included in proposed Personnel Rules Deleted Clean up item, no longer needed in Personnel Rules. Rule 607 – Amendment Rule 1-5 Combined Combined with 608 Rule 608 – Effective Date Rule 1-5 Combined Combined with 607 NA Rule 1-1 – Purpose Added Provision added. Language added to clearly state employment practices within the City and address conflicts with collective bargaining agreements. NA Rule 1-2 – Equal Employment Provision added. Language added to clearly state employment practices within the City. NA Rule 1-4 - Nepotism Added Provision added. Addressed in Section 243 of the former City Charter. Langue added to more fully address this issue. NA Rule 1-6 – Departmental Rules & Regulations Added Provision added. Language added to more fully address establishment of separate Departmental work rules, policies and procedures. 18.c Packet Pg. 561 Attachment: Attachment 3 - HR.Personnel Rules.Attachment 3.Exhibit B (7050 : Resolution Approving the Page 1 Consent Calendar City of San Bernardino Request for Council Action Date: January 20, 2021 To: Honorable Mayor and City Council Members From: Robert D. Field, City Manager By:Mitch Cochran, Information Technology Director Subject: Authorization to Purchase Data Communication Services from ATEL/TPX (All Wards) Recommendation Adopt Resolution No. 2021-9 of the Mayor and City Council of the City of San Bernardino, California, authorizing the City Manager or designee to authorize and issue purchase orders in an amount not to exceed $1,044,450 to ATEL Communications for the purchase of data communication services from TPX for a period of 60 months . Background The City currently utilizes TPX Communications as the provider of communications lines that link all of the City locations. TPX provides the service using lines from either Frontier Communications or Spectrum depending on what is available at that location. They have provided excellent service and are able to be the single point of co ntact when there is an outage. The City currently uses high speed internet services from Spectrum at both City Hall and the Police Department. The City is currently paying approximately $21,000 a month for a connection to each of 12 sites. The City wants to add flexibility to the network and upgrade to more current technology while saving on costs. The City would like to add the Verdemont Community Center which currently does not have a data communication connection. Initial cost estimates were cost prohibitive at adding that location. As other City facilities change, such as City Hall, then the network needs to be able to add locations regardless of where they are located. The City has three independent networks and it would be beneficial to integrat e them were possible. The goal would be to use City locations as collection points for the specialized networks: City data and phone communications Traffic Signals Video Cameras 19 Packet Pg. 562 6966 Page 2 The City uses dated technology called Multiprotocol Label Switchin g (MPLS). City staff is evaluating moving to newer technology called Software Defined Wide Area Networks (SD-WAN), which will provide better reliability and better security at a lower cost. The SD-WAN technology is more fault tolerant and allows for bette r integration with cloud providers and future technologies. Discussion The City received proposals from Spectrum Communications and a joint proposal from TPX and ATEL Communications. ATEL Communications is the current provider for support on our phone system and they resell TPX services. Each proposal would provide for moving the City to SD-WAN technology, adding the Verdemont Community Center, and save between $4,000 and $5,000 a month from the current costs. VENDOR MONTHLY COST INITIAL COST ONE TIME DISCOUNT TOTAL COST 60 MONTHS ATEL / TPX $ 15,825 $0 $0 $ 949,500 SPECTRUM $ 16,564 $750 $ 33,000 (2 months free) $ 961,516 The two proposals are very comparable. City staff recommends the selection of the TPX solution for the following reasons: The TPX solution would spread the one-time initial costs of $37,944.50 over the cost of the contract so there would not be a higher initial cost. TPX is able to take advantage of either Frontier or Spectrum to provide connectivity to any location which allows flexibility in the future. The TPX solution would only take a few months to implement. Spectrum might take up to a year to pull fiber to all locations. The TPX solution provides VeloCloud technology which enables better noise suppression and reliability. 2020-2025 Key Strategic Targets and Goals The purchase of advanced technology and maintenance agreements align with Key Target No. 1: Financial Stability. The services and agreements help to support the creation and management of an asset management plan. The replacement of MPLS technology allows for a lower cost, more robust infrastructure which supports the asset management plan. Fiscal Impact The project would allow for reduction in expenses in this fiscal year and future years totaling approximately $300,000 over the five year life of the agreement. The existing funds are budgeted in the existing FY 2020/21 year in account: 679-250-0060*5157. 19 Packet Pg. 563 6966 Page 3 City staff is requesting purchasing authorization for: VENDOR MONTHLY COST 5 YEAR COST AUTHORIZATION WITH 10% CONTINGENCY ATEL / TPX $ 15,825 $ 949,500 $ 1,044,050 Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution No. 2021-9, authorizing the City Manager or designee to authorize and issue purchase orders in an amount not to exceed $1,044,450 to ATEL Communications for the purchase of data communication services from TPX for a period of 60 months. Attachments Attachment 1 Resolution No. 2021-9 Attachment 2 TPX Proposal Ward: All Synopsis of Previous Council Actions: September 4, 2019 Authorization of the Purchase of Communication Services from TPX for FY2019-2020 June 3, 2020 Authorization of the Purchase of Communication Services from TPX for FY2020-2021 19 Packet Pg. 564 RESOLUTION NO. 2021-10 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AUTHORIZING THE CITY MANAGER OR DESIGNEE TO AUTHORIZE AND ISSUE PURCHASE ORDERS IN AN AMOUNT NOT TO EXCEED $1,044,450 TO ATEL COMMUNICATIONS FOR THE PURCHASE OF DATA COMMUNICATION SERVICES FROM TPX FOR A PERIOD OF 60 MONTHS WHEREAS, the City of San Bernardino contracts with vendors to provide advanced technology systems and communication services to support City operations at 14 locations; and WHEREAS, the City Information Technology Department evaluated alternatives through an RFP that would replace existing MPLS data communication technology amongst City facilities with new Software Defined Wide Area Network (SD-WAN) technology while lowering the monthly cost; and WHEREAS, the City Council provides purchasing authorization for annual or long term purchases of an amount over $50,000. .BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. The above recitals are true and correct and are incorporated herein by this reference. SECTION 2. The City Manager is hereby authorized to execute documents for the purchase of data communication services amongst city facilities from TPX for a period of 60 months. SECTION 3. Effective Date. This Resolution shall become effective immediately and continue for 60 months. SECTION 4. The authorization to purchase the annual maintenance agreements, issue the purchase order, and execute any other documents necessary to initiate the agreements is valid for sixty (60) days from the passage of this Resolution. APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this ___ day of __________ 2020. John Valdivia, Mayor City of San Bernardino 19.a Packet Pg. 565 Attachment: Attachment 1 - Resolution No. 2021-9 (6966 : Authorization to Purchase Data Communication Services from ATEL/TPX (All Wards)) Resolution No. 2021-10 Attest: Genoveva Rocha, CMC, City Clerk Approved as to form: Sonia Carvalho, City Attorney 19.a Packet Pg. 566 Attachment: Attachment 1 - Resolution No. 2021-9 (6966 : Authorization to Purchase Data Communication Services from ATEL/TPX (All Wards)) Resolution No. 2021-10 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, City Clerk, hereby certify that the attached is a true copy of Resolution No. 2020-___, adopted at a regular meeting held on the ___ day of _______ 2020 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ REYNOSO _____ _____ _______ _______ CALVIN _____ _____ _______ _______ ALEXANDER _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2020. Genoveva Rocha, CMC, City Clerk 19.a Packet Pg. 567 Attachment: Attachment 1 - Resolution No. 2021-9 (6966 : Authorization to Purchase Data Communication Services from ATEL/TPX (All Wards)) 19.b Packet Pg. 568 Attachment: Attachment 2 - Authorization to Purchase Data Communication - TPX Quote (6966 : Authorization to Purchase Data 19.b Packet Pg. 569 Attachment: Attachment 2 - Authorization to Purchase Data Communication - TPX Quote (6966 : Authorization to Purchase Data 19.b Packet Pg. 570 Attachment: Attachment 2 - Authorization to Purchase Data Communication - TPX Quote (6966 : Authorization to Purchase Data 19.b Packet Pg. 571 Attachment: Attachment 2 - Authorization to Purchase Data Communication - TPX Quote (6966 : Authorization to Purchase Data 19.b Packet Pg. 572 Attachment: Attachment 2 - Authorization to Purchase Data Communication - TPX Quote (6966 : Authorization to Purchase Data 19.b Packet Pg. 573 Attachment: Attachment 2 - Authorization to Purchase Data Communication - TPX Quote (6966 : Authorization to Purchase Data 19.b Packet Pg. 574 Attachment: Attachment 2 - 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Authorization to Purchase Data Communication - TPX Quote (6966 : Authorization to Purchase Data 19.b Packet Pg. 596 Attachment: Attachment 2 - Authorization to Purchase Data Communication - TPX Quote (6966 : Authorization to Purchase Data 19.b Packet Pg. 597 Attachment: Attachment 2 - Authorization to Purchase Data Communication - TPX Quote (6966 : Authorization to Purchase Data 19.b Packet Pg. 598 Attachment: Attachment 2 - Authorization to Purchase Data Communication - TPX Quote (6966 : Authorization to Purchase Data 19.b Packet Pg. 599 Attachment: Attachment 2 - Authorization to Purchase Data Communication - TPX Quote (6966 : Authorization to Purchase Data 19.b Packet Pg. 600 Attachment: Attachment 2 - Authorization to Purchase Data Communication - TPX Quote (6966 : Authorization to Purchase Data 19.b Packet Pg. 601 Attachment: Attachment 2 - Authorization to Purchase Data Communication - TPX Quote (6966 : Authorization to Purchase Data 19.b Packet Pg. 602 Attachment: Attachment 2 - Authorization to Purchase Data Communication - TPX Quote (6966 : Authorization to Purchase Data 19.b Packet Pg. 603 Attachment: Attachment 2 - Authorization to Purchase Data Communication - TPX Quote (6966 : Authorization to Purchase Data 19.b Packet Pg. 604 Attachment: Attachment 2 - Authorization to Purchase Data Communication - TPX Quote (6966 : Authorization to Purchase Data 19.b Packet Pg. 605 Attachment: Attachment 2 - Authorization to Purchase Data Communication - TPX Quote (6966 : Authorization to Purchase Data 19.b Packet Pg. 606 Attachment: Attachment 2 - Authorization to Purchase Data Communication - TPX Quote (6966 : Authorization to Purchase Data Page 1 Consent Calendar City of San Bernardino Request for Council Action Date: January 20, 2021 To: Honorable Mayor and City Council Members From: Robert D. Field, City Manager By:Mitch Cochran, Information Technology Director Subject: Authorization to Purchase Website Hosting and Migration Services (All Wards) Recommendation Adopt Resolution No. 2020-10 of the Mayor and City Council of the City of San Bernardino, California authorizing the City Manager or designee to authorize and issue Purchase Orders in an amount not to exceed $87,835 to Intrado for the purchase of a website content management system and services to host the City’s external website and intranets for five years. Background The City hosts an external public website, www.sbcity.org <http://www.sbcity.org>, and three internal use websites, called intranets, which are focused on specific City areas: City Hall, Police Department, and a mobile Police Department for vehicles. The current websites are hosted on City servers. Th e web content management system allows users to easily edit the internal and external web sites. The City pays annual maintenance fees of $10,300 for application support. The current vendor, Granicus, is withdrawing support for the current web management system, Civica. Granicus has announced that support will be withdrawn as of January 2022. The vendor is trying to move its customers to its new generation of software. Granicus estimated that the cost to move to its new product would be over $50,000 pl us annual fees so the City evaluated an RFP. Discussion Staff is requesting authorization to issue purchase orders for the purchase of the replacement software application, migration services, and hosting services for five years. Staff issued and evaluated an RFP for a new web content management system. The goals were to replace the unsupported software and move the website to be hosted by the provider. A hosted website is more secure since it is detached from the City network. Also, website users would be viewing the website in the cloud instead of using our internet connection to view a locally hosted website. A hosted website allows for less traffic to use the City’s internet connection, freeing up more capacity for City staff 20 Packet Pg. 607 7055 Page 2 use. The RFP was issued through the City’s Planet Bid bidding system and received fifteen responses for a five year cost ranging from $70,000 to $279,000. The pricing models varied with some responses having higher initial costs and some having higher annual support costs. The City staff evaluated the top four vendors including an open -source provider. The City has budgeted $60,000 for the initial cost and spends approximately $7,600 each year in annual maintenance on the current system. VENDOR EXPECTED INITIAL COST TOTAL FIVE YEAR COST EvoGov $43,400 $55,400 Intrado $49,850 $79,850 CivicPlus $58,306 $101,285 Park Circle Tech (Open Source) $36,400 $68,400 Open Source software is able to be used without purchasing a software license. It is supported by the community. Even though there is no initial cost, there are fees for support by third party consultants along with hosting fees. Traditional vendor provided software was judged to be able to provide more custom functionality for the City. As a community based software, there is no control on future enhancements for the tool. Park Circle Tech also does not have any experience in the government space. City Staff recommends that Intrado be the selected vendor. Intrado was not the lowest cost responder; however, it has more developed software focused on government entities and a more extensive user base. Staff compared sample websites from each of the vendors and the capabilities of the recommended tools. Intrado’s product will be able to address secure connections to the police vehicles and a better tool for resizing images. Intrado also has additional modules which can be purchased in the future such as their messaging system which is similar to a reverse -911 system. Their system is currently in use with San Bernardino City Unified School district. VENDOR EXPECTED INITIAL COST EXPECTED ANNUAL COST FOR EACH YEAR: YEARS 2-5 EXPECTED TOTAL AMOUNT NOT TO EXCEED (with 10% contingency) Intrado $49,850 $7,500 $ 79,850 $ 87,835 2020-2025 Key Strategic Targets and Goals The purchase of a new website Content Management System supports Key Target No. 2a: Focused, Aligned Leadership and Unified Community - develop and implement a community engagement plan. 20 Packet Pg. 608 7055 Page 3 Fiscal Impact The Inland Empire Media Group (IEMG) has allocated $60,000 in the FY 2020/21 budget for the project. The annual maintenance cost is currently budgeted as an annual expense with the projected amount being similar to the current expenditures: DEPARTMENT BUDGETED AMOUNT ACCOUNT NUMBERS CATV/IEMG - One Time $60,000.00 107-250-0058*5167 Information Technology - BSG - Ongoing $7,576.67 679 250 0058*5167 Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution No. 2021-10 authorizing the City Manager or designee to authorize and issue Purchase Orders in an amount not to exceed $87,835 to Intrado for the purchase of a website content management system and services to host the City’s external website and intranets for five years. Attachments Attachment 1 Resolution No. 2021-10 Attachment 2 Web Content Management System RFP Attachment 3 Intrado Response Attachment 4 Final Contract Ward: All Synopsis of Previous Council Actions: n/a 20 Packet Pg. 609 RESOLUTION NO.______ RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AUTHORIZING THE PURCHASE OF DATA COMMUNICATION SERVICES AMONGST CITY LOCATIONS FROM TPX FOR A PERIOD OF 60 MONTHS WHEREAS, the City of San Bernardino contracts with vendors to provide advanced technology systems and communication services to support City operations at 14 locations; and WHEREAS, the City Information Technology Department evaluated alternatives through an RFP that would replace existing MPLS data communication technology amongst City facilities with new Software Defined Wide Area Network (SD-WAN) technology while lowering the monthly cost; and WHEREAS, the City Council provides purchasing authorization for annual or long term purchases of an amount over $50,000. .BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. The above recitals are true and correct and are incorporated herein by this reference. SECTION 2. The City Manager is hereby authorized to execute documents for the purchase of data communication services amongst city facilities from TPX for a period of 60 months. SECTION 3. Effective Date. This Resolution shall become effective immediately and continue for 60 months. SECTION 4. The authorization to purchase the annual maintenance agreements, issue the purchase order, and execute any other documents necessary to initiate the agreements is valid for sixty (60) days from the passage of this Resolution. APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this ___ day of __________ 2020. John Valdivia, Mayor City of San Bernardino Attest: 20.a Packet Pg. 610 Attachment: Attachment 1 - Resolution No. 2021-10 - Authorization to Purchase Data Communications (7055 : Authorization to Purchase Resolution No. ___ Genoveva Rocha, CMC, City Clerk Approved as to form: Sonia Carvalho, City Attorney 20.a Packet Pg. 611 Attachment: Attachment 1 - Resolution No. 2021-10 - Authorization to Purchase Data Communications (7055 : Authorization to Purchase Resolution No. ___ CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, City Clerk, hereby certify that the attached is a true copy of Resolution No. 2020-___, adopted at a regular meeting held on the ___ day of _______ 2020 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ REYNOSO _____ _____ _______ _______ CALVIN _____ _____ _______ _______ ALEXANDER _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2020. Genoveva Rocha, CMC, City Clerk 20.a Packet Pg. 612 Attachment: Attachment 1 - Resolution No. 2021-10 - Authorization to Purchase Data Communications (7055 : Authorization to Purchase Information to Insight Intrado Proposal for Web Content Management System for City Website and Intranets Prepared for: The City of San Bernardino Prepared By: Michael Goulet, Vice President of Sales Intrado Interactive Services Corporation 1027 South Main Street, Suite 503 Joplin, MO 64801 T: 1-888-527-5225 ext. 1638 | F: 1-866-204-6147 E: mgoulet@intrado.com 20.b Packet Pg. 613 Attachment: Attachment 2 - Authorization to purchaswe web services - appendix b Intrado Updated Pricing (7055 : Authorization to Purchase INTRADO INTERACTIVE SERVICES CORPORATION CONFIDENTIAL Page 2 Page | 2 PRICING BREAKDOWN Year 1: Design, Build, and Implementation $49,850.00 Design and Development of SBCity.org With Our 100% Design Satisfaction Guarantee $34,900.00 Design and Development of Customized Library Subsite Based on Main Site Wireframes (Hosted Separately to Allow for Unique Top-Level Navigation) $3,425.00 Design and Development of Customized Media Subsite Based on Main Site Wireframes (Hosted Separately to Allow for Unique Top-Level Navigation) $3,425.00 Design and Development of Customized Intranet Subsite Based on Main Site Wireframes (Hosted Separately to Allow for Unique Top- Level Navigation) $4,050.00 Design and Development of Customized Police Intranet Subsite Based on Main Site Wireframes (Hosted Separately to Allow for Unique Top- Level Navigation) $4,050.00* Implementation and Project Management Services as Detailed in Main Response Included Year 2: Software-as-a-Service Fee $7,500.00 Data Protection and Unlimited-Bandwidth Website Hosting Services for SBCity.org, Two Subsites, and One Intranet Subsite Included Data Protection and Unlimited-Bandwidth Website Hosting Services for Police Intranet Subsite $708.00* CMS Software Version Upgrades and Maintenance Included Unlimited, 24/7/365 Access to Customer Support Included Unlimited-User CMS Software License Included Year 3: Software-as-a-Service Fee $7,500.00 Data Protection and Unlimited-Bandwidth Website Hosting Services for SBCity.org, Two Subsites, and One Intranet Subsite Included Data Protection and Unlimited-Bandwidth Website Hosting Services for Police Intranet Subsite $708.00* CMS Software Version Upgrades and Maintenance Included Unlimited, 24/7/365 Access to Customer Support Included Unlimited-User CMS Software License Included 20.b Packet Pg. 614 Attachment: Attachment 2 - Authorization to purchaswe web services - appendix b Intrado Updated Pricing (7055 : Authorization to Purchase INTRADO INTERACTIVE SERVICES CORPORATION CONFIDENTIAL Page 3 Page | 3 Year 4: Software-as-a-Service Fee $7,500.00 Data Protection and Unlimited-Bandwidth Website Hosting Services for SBCity.org, Two Subsites, and One Intranet Subsite Included Data Protection and Unlimited-Bandwidth Website Hosting Services for Police Intranet Subsite $708.00* CMS Software Version Upgrades and Maintenance Included Unlimited, 24/7/365 Access to Customer Support Included Unlimited-User CMS Software License Included Design Refresh Services for SBCity.org at the End of Contract Year #4, if Desired Included Year 5: Software-as-a-Service Fee $7,500.00 Data Protection and Unlimited-Bandwidth Website Hosting Services for SBCity.org, Two Subsites, and One Intranet Subsite Included Data Protection and Unlimited-Bandwidth Website Hosting Services for Police Intranet Subsite $708.00* CMS Software Version Upgrades and Maintenance Included Unlimited, 24/7/365 Access to Customer Support Included Unlimited-User CMS Software License Included *The Police Intranet scope is dependent on the viability of unique configuration capabilities. While we do not anticipate issues with the City’s envisioned scenario, should the City require a different solution in order to meet this need, we will issue a credit of $4,050.00 and reduce your recurring Software-As-A-Service Fee by $708.00 per year. 20.b Packet Pg. 615 Attachment: Attachment 2 - Authorization to purchaswe web services - appendix b Intrado Updated Pricing (7055 : Authorization to Purchase Request for Proposal Web Content Management System for City Website and Intranets City of San Bernardino Department of Information Technology August 17, 2020 Responses Due Monday, September 7, 2020 at 3:00pm 20.c Packet Pg. 616 Attachment: Attachment 3 - RFP F-21-04 - Website Content Management System (7055 : Authorization to Purchase Website Hosting and City of San Bernardino 2 of 12 8/17/2020 Table of Contents 1. Background 1.1 City of San Bernardino 1.2 Project Proposal 1.3 General Information 1.4 Submission of Proposals 1.5 Contractual Development 1.6 Contract Requirements 1.7 Expenses of Proposal Preparation 1.8 Rights of the City of San Bernardino 2. Project Proposal 2.1 Project Requirements 2.2 Support Requirements 3. Vendor Response 3.1 Cover Letter 3.2 Vendor Information 3.3 Requirements Checklist 3.4 Cost Summary 3.5 Product Information 4. Evaluation 4.1 Evaluation Process 4.2 Evaluation Schedule Appendix A. Indemnification, Insurance and Licenses Clauses 20.c Packet Pg. 617 Attachment: Attachment 3 - RFP F-21-04 - Website Content Management System (7055 : Authorization to Purchase Website Hosting and City of San Bernardino 3 of 12 8/17/2020 1. Background 1.1 City of San Bernardino The City is seeking to migrate its current public website www.sbcity.org and possibly two intranet websites (City Hall and Police Department) to a new Web Content Management System (CMS) to take the place of the existing Granicus Civica CMS currently used to manage these websites. The goal is to complete the migrations before July 1, 2021 when Granicus has announced support will be withdrawn. All websites are currently hosted locally, but the City is interested in having its public website hosted offsite while continuing to host its intranet websites locally. City workstations run on a combination of the Windows 7 and Windows 10 operating systems, and have Microsoft Office 2010 installed. Google Chrome is the standard web browser. The City’s webservers run Microsoft Windows Server operating systems and utilize Microsoft SQL Server databases. The webservers are virtualized and reside in two separate (City Hall and PD) VMware vSAN environments connected to each other via 10 Gb/s links. The City’s connection to the Internet is at a bandwidth of 1GB Mb/s (up and down). 1.2 Project Proposal This project calls for the acquisition of new Website Content Management System (CMS) software and the migration and integration of the City’s public website and optionally two intranet websites with the new CMS, including related data and documents. The expectation is that the designs of these websites will either remain largely unchanged or utilize existing designs that already exist and are available from the selected vendor. The City would like for the CMS vendor to host the public website while the City continues to host the intranet websites locally. As an option, the City would also like the cost for cloud based hosting of the intranet sites. 1.3 General Information Vendors responding to this request for proposal are expected to provide a certain minimum level of detail in their responses. If the information requested is not provided in its entirety or is not sufficiently detailed, the evaluation team may determine that the proposal does not meet the minimum requirements. Questions regarding the contents of this proposal must be entered in Planetbids under “Questions and Answers” tab before August 21, 2020. 20.c Packet Pg. 618 Attachment: Attachment 3 - RFP F-21-04 - Website Content Management System (7055 : Authorization to Purchase Website Hosting and City of San Bernardino 4 of 12 8/17/2020 1.4 Submission of Proposals Each company responding to this RFP must submit the following in electronic copy: Attach proposal, including the Cost and Reference worksheet and Feature-Function checklist. The proposals must be received prior to: Monday, September 7th, at 3:00pm Proposals received after the stated hour will not be considered. 1.5 Contractual Development The City reserves the right to reject any and all proposals received, to compare the relative merits of the respective proposals, and to choose a proposal or components which in the sole opinion of the City will best serve the interest or needs of the City. If a proposal is accepted and selected, the City intends to negotiate and enter into a contractual agreement with the vendor firm. The content of the RFP and successful vendor’s firm proposal will become an integral part of the contract, but either may be modified by the final negotiated provisions of the contract. 1.6 Contract Requirements Contractual Time Line: The proposed software and migrations are to be completed and in operation by July 1, 2021. Insurance Requirements: Any contract shall contain indemnity and insurance provisions substantially in the form of the attached “Insurance Clause” (Appendix). The cost of providing insurance shall be included in the proposal price, and no additional compensation will be allowed. Any requested changes in the Insurance Clause should be submitted in writing and is subject to approval by the City. 1.7 Expenses of Proposal Preparation Each proposal prepared in response to this RFP shall be prepared at the sole cost and expense of the proposer and with the express understanding that no claims against the City for reimbursement will be accepted. 1.8 Rights of the City of San Bernardino The City reserves the right, at its discretion, to pursue any or all the following actions related to the RFP: 1. Issue addenda to the request for proposal. 2. Request additional information and/or clarification from the vendors. 3. Negotiate a contract solely on the basis of the original proposal(s). 20.c Packet Pg. 619 Attachment: Attachment 3 - RFP F-21-04 - Website Content Management System (7055 : Authorization to Purchase Website Hosting and City of San Bernardino 5 of 12 8/17/2020 4. Negotiate a contract on the basis of additional information supplied by a vendor. 5. Reject, for any reason, any or all proposals, permit the timely correction of errors, waive minor deviations and technical errors and/or discrepancies and/or waive any informalities in a proposal not affected by law, and accept or reject all or any part of any proposal as may be considered to best serve the public interest and the needs of the City. 6. Issue subsequent requests for proposal or invitations to bid based on the refinement of concepts proposed in response to this RFP. This Request for Proposal (RFP) is not a solicitation and does not obligate the City of San Bernardino to accept any proposal, negotiate with any vendor, award a contract or to proceed with the development of any project proposed in response to this RFP. The awarding of any contract shall be subject to such prior governmental approvals or determinations as may be required or appropriate. 2. Project Proposal 2.1 Project Requirements The proposal shall include responses to the Feature and Function Checklist. The checklist is intended to identify items that are included in the proposal, items that are available at extra cost, items that will be available in an upcoming release, or items that are not planned to be made available. Please use the following numbers to identify the features: 1 – Feature is included in the proposal 2 – Feature is available at extra cost 3 – Feature will be available in an upcoming release 4 – Feature is not planned to be made available The Feature and Function Checklist is not meant to be comprehensive and the vendor may add items to the end of it. The proposed solution should include the following: Overall Requirements - Web Content Management System (CMS) software - Public website migration and CMS implementation services - Public website hosting services - Option for CMS migration/implementation for intranet websites - Samples of available/recommended website designs - Training for CMS users - Desktop / Server hardware and software requirements - Network requirements - Project timeline 2.2 Support Requirements 1. Customer Service 20.c Packet Pg. 620 Attachment: Attachment 3 - RFP F-21-04 - Website Content Management System (7055 : Authorization to Purchase Website Hosting and City of San Bernardino 6 of 12 8/17/2020 a. The vendor must provide telephone support during normal business hours, Monday through Friday, 7:30am to 5:30pm, Pacific Time. b. The vendor must have online e-mail available to respond to questions and answers regarding CMS and hosting issues. 2. Updates a. The vendor must have the capability to update the software. Vendor telephone or direct-access support should be available during any major application update procedure. 3. Vendor Response The proposal must be concise and with sufficient detail to allow accurate evaluation and comparative analysis. Please respond to each of the following items in the indicated sequence and format. Attachments containing supporting material in response to specific items may be submitted. All attachments, brochures and supporting materials should be placed in an appendix at the back of the proposal and follow the order of the RFP. Attach all completed forms to the “Documents & Attachments” tab in Planetbids. 3.1 Cover Letter Proposal must be accompanied by a cover letter, signed by an individual authorized to bind the proposing entity. Please include the RFP cover page. 3.2 Vendor Information 1. Vendor Contact - Please provide a company representative to contact for questions. Please include the: Name, Title, Address, Phone, Fax and E-Mail address 2. The vendor should provide 5 reference installations with comparable volumes, configurations, and system requirements. 3.3 Requirements Checklist 1. Provide an executive summary of proposal. 2. Proposed System and Services A. Provide detailed description of how the proposal meets the goals of the City as listed in Section 1. B. Include the following items in responding to the proposed system configuration: 20.c Packet Pg. 621 Attachment: Attachment 3 - RFP F-21-04 - Website Content Management System (7055 : Authorization to Purchase Website Hosting and City of San Bernardino 7 of 12 8/17/2020 - Web Content Management System (CMS) software - Public website migration and CMS implementation services - Public website hosting services - Option for CMS migration/implementation for intranet websites - Samples of available/recommended website designs - Desktop / Server hardware and software requirements - Network requirements C. Fill out the adjoining Feature and Function worksheet. 3. Support Services Provide itemization of hardware and software support services available and the associated cost. 4. Training for Administrators and Web Content Management System Users Identify and recommended training and costs for both administrator and CMS users. Specify number of users to be trained, length of training, and mode of training (i.e. video, classroom, remote, etc.). 5. Implementation Plan Include a project management plan to administer the project that includes task description, responsible entities, duration and status reporting procedures. 6. References Vendor shall submit the names, addresses, telephone numbers and length of installation of 5 clients that have installed the proposed applications. 7. Provide cost summary; refer to item 3.4, ‘Cost Summary’ for details. 3.4 Cost Summary The vendor must state the effective time period for pricing within the proposal. The proposal pricing must be valid for a minimum of 6 months. The vendor is required also to identify any items that are offered as options and not included as part of the bid. As a separate cost list, please estimate any ongoing operational costs apart from maintenance. The City reserves the right to buy all or part of the vendor’s offering. 1. Cost Requirements Please include a detailed cost breakdown of the proposal into the following categories: 20.c Packet Pg. 622 Attachment: Attachment 3 - RFP F-21-04 - Website Content Management System (7055 : Authorization to Purchase Website Hosting and City of San Bernardino 8 of 12 8/17/2020 a. Software Itemize the application software breakdown. Include software licensing costs if applicable. Please include software maintenance costs for each of the first 5 years and if maintenance is charged during year one. b. Services Itemize costs for system implementation, content migration, website hosting, administrator/user training, and maintenance/support. 2. Format Please fill-in the attached Excel spreadsheet. The spreadsheet should include: - Product Name - Brief Description (if not self-explanatory) - Number of users licensed - List Price - Discount - Extended Price The necessary summary information must include: - Software modules - Price - Training - Maintenance - Total Cost - Total 5 year Cost 3.5 Product Information The vendor should attach any supporting materials in the following appendices: Appendix A Supporting detail for RFP forms Appendix B Sample contracts (not included as part of response forms) Appendix C Brochures and other literature 4. Evaluation 4.1 Evaluation Process The RFP response will be evaluated based upon the detailed information provided. Additional information may be sought from vendors. Vendors may be asked to present and explain their RFP response at management and technical levels. The RFP 20.c Packet Pg. 623 Attachment: Attachment 3 - RFP F-21-04 - Website Content Management System (7055 : Authorization to Purchase Website Hosting and City of San Bernardino 9 of 12 8/17/2020 responses that appear to be functionally favorable but not necessarily at a lower cost will be compared to other responses. 1. Evaluation Criteria - Cost - Ability to meet requirements as specified - Capability of vendor’s solution to meet both the current and future needs of the City of San Bernardino - Quality and availability of proposed support services 2. Evaluation Team The evaluation will be performed by a team composed of IT and Web CMS users. 4.2 Evaluation Schedule The city is committed to implementing an effective system in a timely manner. The following schedule is key to accomplishing this goal. August 17, 2020 Proposal sent to vendors August 21,2020 Questions due August 25, 2020 Answers will be posted to Planetbids September 7, 2020 All proposals received October, 2020 City Council Review & Award November, 2020 Start of Implementation July 1, 2021 System in operation 20.c Packet Pg. 624 Attachment: Attachment 3 - RFP F-21-04 - Website Content Management System (7055 : Authorization to Purchase Website Hosting and City of San Bernardino 10 of 12 8/17/2020 Appendix A. Indemnification and Insurance Clauses Indemnification Vendor shall indemnify, defend and hold the City of San Bernardino, its officers, agents and employees free and harmless from and against any and all claims, liabilities, losses, actions, suits, proceedings, damages and expenses (including all out-of-pocket litigation costs and reasonable fees and expenses of counsel) arising out of or in any way relating to vendor’s performance of this agreement. The vendor’s indemnity shall not extend to occurrences resulting from the sole negligence or intentional misconduct by the City, its officials, agents, employees, or volunteers. Insurance Vendor shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder and the results of that work by the Contractor, his agents, representatives, employees or subcontractors. Minimum Scope of Insurance Coverage shall be at least as broad as: 1. Insurance Services Office Commercial General Liability coverage (occurrence Form CG 0001). 2. Insurance Services Office Form Number CA 0001 covering Automobile Liability, code 1 (any auto). 3. Workers’ Compensation insurance as required by the State of California and Employer’s Liability Insurance. Minimum Limits of Insurance Vendor shall maintain limits no less than: 1. General liability: (Including operations, products, and completed operations.) $5,000,000 per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit. 2. Automobile Liability: $1,000,000 per accident for bodily injury and property damage. 3. Course of Construction: Completed value of the project with no coinsurance penalty provisions. 4. Workers’ Compensation: As required by the State of California. 5. Employer’s Liability: $1,000,000 per accident for bodily injury or disease. 20.c Packet Pg. 625 Attachment: Attachment 3 - RFP F-21-04 - Website Content Management System (7055 : Authorization to Purchase Website Hosting and City of San Bernardino 11 of 12 8/17/2020 Deductibles and Self-Insured Retentions Any deductibles or self-insured retentions must be declared to and approved by the City. At the option of the City, either; the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the City, its officers, officials, employees and volunteers; or the Vendor shall provide a financial guarantee satisfactory to the entity guaranteeing payment of losses and related investigations, claim administration, and defense expenses. Other Insurance Provisions The general liability and automobile liability policies are to contain, or be endorsed to contain, the following provisions: 1. The City, its officers, officials, employees, and volunteers are to be covered as insureds with respect to liability arising out of automobiles owned, leased, hired, or borrowed by or on behalf of the Vendor; and with respect to liability arising out of work or operations performed by or on behalf of the contractor including materials, parts or equipment furnished in connection with such work or operations. General Liability coverage shall be provided in the form of an Additional Insured endorsement (CG 20 10 11 85 or equivalent) to the Vendor’s insurance policy, or as a separate owner’s policy. 2. For any claims related to this project, the Vendor’s insurance coverage shall be primary insurance as respects the City, its officers, officials, employees, and volunteers. Any insurance or self-insurance maintained by the entity, its officers, officials, employees, or volunteers shall be excess of the Vendor’s insurance and shall not contribute with it. 3. Each insurance policy required by this clause shall be endorsed to state that coverage shall not be canceled by either party, except after thirty (30) days’ prior written notice by certified mail, return receipt requested, has been given to the City. 4. Coverage shall not extend to any indemnity coverage for the active negligence of the additional insured in any case where an agreement to indemnify the additional insured would be invalid under Subdivision (b) of Section 2782 of the Civil Code. The Workers’ Compensation policy shall be endorsed with a waiver of subrogation in favor of the entity for all work performed by the Vendor, its employees, agents and subVendors. Acceptability of Insurers Insurance is to be placed with insurers with a current A.M. Best’s rating of no less than A:VII. Exception may be made for the State Compensation Insurance Fund when not specifically rated. Verification of Coverage Vendor shall furnish the entity with original certificates and endorsements effecting coverage required by this clause. The endorsements should be on forms provided by the City or on other than the entity’s forms, provided those endorsements or policies conform to the requirements. All certificates and endorsements are to be received and 20.c Packet Pg. 626 Attachment: Attachment 3 - RFP F-21-04 - Website Content Management System (7055 : Authorization to Purchase Website Hosting and City of San Bernardino 12 of 12 8/17/2020 approved by the entity before work commences. The City reserves the right to require complete, certified copies of all required insurance policies, including endorsements affecting the coverage required by these specifications at any time. Subcontractors Vendor shall include all subcontractors as insureds under its policies or shall furnish separate certificates and endorsements for each subcontractor to the entity for review and approval. All coverages for subcontractors shall be subject to all of the requirements stated herein. Assignment Vendor shall not assign or otherwise transfer its rights or obligations under this Agreement without the prior written consent of the City of San Bernardino, which consent shall not be unreasonably withheld. Any attempt to make such an assignment without the City’s consent shall be void. For purposes of this paragraph, if Vendor is a corporation an “assignment” shall include an actual change in control of Vendor or a change of ownership of more than fifty percent of the voting stock of vendor, where such stock is acquired by a person or group of persons acting in concert, none of whom already own fifty percent or more of the voting stock, singly or collectively. Licenses Vendor represents that it has secured all necessary licenses, consents or approvals to use the software and hardware components of its system and to sell the system under its name. Vendor covenants to defend, indemnify and hold City harmless of any loss, claim or liability in any way related to a claim that City is violating federal, state or local law, or any contractual provisions, relating to trade name, licenses, franchises, patents or other means of protecting interests in products or inventions. Vendor shall bear all costs arising from the use of patented, copyrighted, trade secret or trademarked materials, equipment, devices or processes used on or incorporated in the hardware and system software. In such case materials, equipment, devices or processes are held to constitute an infringement and their use is enjoined, Vendor, at its expense shall: (a) secure for City the right to continue using said materials, equipment, deices or processes by suspension of the injunction or by procuring a license or licenses; or (b) replace such materials, equipment, devices or processes with non-infringing materials, equipment, devices or processes; or (c) modify them so that they become non-infringing or remove the enjoined materials, equipment, devices or processes and refund the sum paid therefor without prejudice to any other rights of City. These covenants shall survive the termination of this Agreement. 20.c Packet Pg. 627 Attachment: Attachment 3 - RFP F-21-04 - Website Content Management System (7055 : Authorization to Purchase Website Hosting and 1 PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND INTRADO INTERACTIVE SERVICES CORPORATION This Agreement is made and entered into as of December 16, 2020 by and between the City of San Bernardino, a charter city and municipal corporation organized and operating under the laws of the State of California with its principal place of business at Vanir Tower, 290 North D Street, San Bernardino, CA 92401 (“City”), and Intrado Interactive Services Corporation, a Corporation with a place of business at 1027 South Main Street, Suite 503, Joplin, Missouri, 64801 (hereinafter referred to as “Consultant”). City and Consultant are hereinafter sometimes referred to individually as “Party” and collectively as the “Parties.” RECITALS A. City is a public agency of the State of California and is in need of professional services for the following project: Design, migration and hosting services for the City internet and intranet websites (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. Incorporation of Recitals. The recitals above are true and correct and are hereby incorporated herein by this reference. 2. Services. Consultant shall provide the City with the services described in the Scope of Services attached hereto as Exhibit “A.” 3. Professional Practices. All professional services to be provided by Consultant pursuant to this Agreement shall be provided by personnel identified in their proposal. Consultant warrants that Consultant is familiar with all laws that may affect its performance of this Agreement and shall advise City of any changes in any laws that may affect Consultant’s performance of this Agreement. Consultant further represents that no City employee will provide any services under this Agreement. 4. Compensation. a. Subject to paragraph 4(b) below, the City shall pay for such services in accordance with the Schedule of Charges set forth in Exhibit “A”, and as follows: 20.d Packet Pg. 628 Attachment: Attachment 4 - Authorization to Purchase Web Services - Final Contract (7055 : Authorization to Purchase Website Hosting and 2 (i) Year 1: Design, Build, and Implementation total fees to be paid immediately on contract execution; and (ii) Years 2 to 5: Annual Software-as-a-Service Fee to be invoiced annually in advance. Notwithstanding the foregoing, the Annual Software-as-a-Service Fee shall only be due at the beginning of Year 2 if the Design, Build, and Implementation phase is complete. b. In no event shall the total amount paid for services rendered by Consultant under this Agreement exceed the sum of eighty-seven thousand eight hundred thirty-five dollars ($87,835.00) for a period of 60 months. This amount is to cover all related costs, and the City will not pay any additional fees for printing expenses. Consultant may submit invoices to City for approval. Said invoice shall be based on the total of all Consultant’s services which have been completed to City’s sole satisfaction. City shall pay Consultant’s invoice within forty-five (45) days from the date City receives said invoice. The invoice shall describe in detail the services performed and the associated time for completion. Any additional services approved and performed pursuant to this Agreement shall be designated as “Additional Services” and shall identify the number of the authorized change order, where applicable, on all invoices. 5. 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. 6. Term. This Agreement shall commence on the Effective Date and continue through the completion of services as set forth in Exhibit “A,” unless the Agreement is previously terminated as provided for herein (“Term”). The initial term of the agreement will be for sixty (60) months and will automatically renew annually unless written notice is given at least thirty (30) days prior to the end of the current term. 7. Maintenance of Records; Audits. a. Records of Consultant’s services relating to this Agreement shall be maintained in accordance with generally recognized accounting principles and shall be made available to City for inspection and/or audit at mutually convenient times for a period of four (4) years from the Effective Date. b. 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. 8. Time of Performance. Consultant shall perform its services in a prompt and 20.d Packet Pg. 629 Attachment: Attachment 4 - Authorization to Purchase Web Services - Final Contract (7055 : Authorization to Purchase Website Hosting and 3 timely manner and shall commence performance upon receipt of written notice from the City to proceed. Consultant shall complete the services required hereunder within Term. 9. 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; 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 notice to the other Party describing the circumstances preventing continued performance and the efforts being made to resume performance of this Agreement. 10. 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. 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. 11. 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. 12. Conflicts of Interest. During the term of this Agreement, Consultant shall at all times maintain a duty of loyalty and a fiduciary duty to the City and shall not accept payment from or employment with any person or entity which will constitute a conflict of interest with the City. 13. City Business Certificate. Consultant shall, prior to execution of this Agreement, obtain and maintain during the term of this Agreement a valid business registration certificate from the City pursuant to Title 5 of the City’s Municipal Code and any and all other licenses, permits, qualifications, insurance, and approvals of whatever nature that are legally required of Consultant to practice his/her profession, skill, or business. 14. Omitted. 20.d Packet Pg. 630 Attachment: Attachment 4 - Authorization to Purchase Web Services - Final Contract (7055 : Authorization to Purchase Website Hosting and 4 15. Independent Consultant. 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. 16. Insurance. Consultant shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder and the results of that work by the Contractor, his agents, representatives, employees or subcontractors. a. Minimum Scope of Insurance Coverage shall be at least as broad as: (i) Insurance Services Office Commercial General Liability coverage (occurrence Form CG 0001). (ii) Insurance Services Office Form Number CA 0001 covering Automobile Liability, code 1 (any auto). (iii) Workers’ Compensation insurance as required by the State of California and Employer’s Liability Insurance. b. Minimum Limits of Insurance Consultant shall maintain limits no less than: (i) General liability: $5,000,000 per occurrence for bodily injury, personal injury and property damage. (ii) Automobile Liability: $1,000,000 per accident for bodily injury and property damage. (iii) Workers’ Compensation: As required by the State of California. (iv) Employer’s Liability: $1,000,000 per accident for bodily injury or disease. c. Deductibles and Self-Insured Retentions Any deductibles or self-insured retentions must be declared to the City. d. Other Insurance Provisions The general liability and automobile liability policies are to contain, or be endorsed to contain, the following provisions: (i) The City, its officers, officials, employees, and volunteers are to be covered as insureds with respect to liability arising out of automobiles owned, leased, hired, or borrowed by or on behalf of the Consultant; and with respect to liability arising out of work or 20.d Packet Pg. 631 Attachment: Attachment 4 - Authorization to Purchase Web Services - Final Contract (7055 : Authorization to Purchase Website Hosting and 5 operations performed by or on behalf of the contractor including materials, parts or equipment furnished in connection with such work or operations. General Liability coverage shall be provided in the form of an Additional Insured endorsement (CG 20 10 11 85 or equivalent) to the Consultant’s insurance policy, or as a separate owner’s policy. (ii) For any claims related to this project, the Consultant’s insurance coverage shall be primary insurance as respects the City, its officers, officials, employees, and volunteers. Any insurance or self-insurance maintained by the entity, its officers, officials, employees, or volunteers shall be excess of the Consultant’s insurance and shall not contribute with it. (iii) Each insurance policy required by this clause shall be endorsed to state that coverage shall not be canceled by either party, except after thirty (30) days’ prior written notice by certified mail, return receipt requested, has been given to the City. (iv) Coverage shall not extend to any indemnity coverage for the active negligence of the additional insured in any case where an agreement to indemnify the additional insured would be invalid under Subdivision (b) of Section 2782 of the Civil Code. The Workers’ Compensation policy shall be endorsed with a waiver of subrogation in favor of the entity for all work performed by the Consultant, its employees, agents and subconsultants. e. Acceptability of Insurers Insurance is to be placed with insurers with a current A.M. Best’s rating of no less than A:VII. Exception may be made for the State Compensation Insurance Fund when not specifically rated. f. Verification of Coverage Consultant shall furnish the entity with original certificates and endorsements effecting coverage required by this clause. The endorsements should be on forms provided by the City or on other than the entity’s forms, provided those endorsements or policies conform to the requirements. All certificates and endorsements are to be received and approved by the entity before work commences. The City reserves the right to require complete, certified copies of all required insurance policies, including endorsements affecting the coverage required by these specifications at any time. g. Subcontractors Consultant shall include all subcontractors as insureds under its policies or shall furnish separate certificates and endorsements for each subcontractor to the entity for review and approval. All coverages for subcontractors shall be subject to all of the requirements stated herein. 17. Indemnity. a. General Indemnity. 20.d Packet Pg. 632 Attachment: Attachment 4 - Authorization to Purchase Web Services - Final Contract (7055 : Authorization to Purchase Website Hosting and 6 City shall indemnify, defend and hold Consultant, its Affiliates and their officers, directors, employees and agents harmless from and against any and all third party claims of loss, damages, liability, costs, and expenses (including reasonable attorneys’ fees and expenses) arising out of or resulting from: (a) a breach by City of any term of this Agreement or an Order; (b) the City Systems and Materials; (c) a claim relating to any defect in any product or service offered by City, its Affiliates or any of their agents or customers; or (d) all liabilities, demands, damages, expenses, or losses arising out of or resulting from any usage of the Licensed Materials that are unrelated to any defect in Licenses Materials for which Consultant is responsible. Nothing herein shall require the City to indemnify the Consultant for any claim or any portion of any claim that arises from the Consultant’s reckless, wanton, wrongful, or otherwise negligent acts of the Consultant. Consultant shall indemnify, defend and hold City, its Affiliates and their officers, directors, employees and agents harmless from and against any and all third party claims of loss, damages, liability, costs, and expenses (including reasonable attorneys’ fees and expenses) arising out of or resulting from: (a) a breach by Consultant of any term of this Agreement or an Order; or (b) any defect in Licensed Materials. Nothing herein shall require the Consultant to indemnify the City for any claim or any portion of any claim that arises from the City’s reckless, wanton, wrongful, or otherwise negligent acts of the City. b. Consultant Intellectual Property Indemnity. Consultant will have the obligation and right at the entire expense of Consultant to defend any claim, suit or proceeding brought against City its Affiliates or their officers, directors, employees or agents so far as it is based on a third party claim that the Services supplied by Consultant infringe a United States copyright or a United States patent issued as of the effective date of the applicable Order, provided that Consultant will have no indemnity obligation or other liability hereunder arising from: (1) City’s willful, reckless, wanton, wrongful, or otherwise negligent acts; (2) breach of the Agreement or an Order or alteration of the Services as provided by Consultant; (3) the City Systems and Materials or Services that are based upon the City Systems and Materials, or information, design, specifications, directions, instruction, software, data, or material not furnished by Consultant; (4) combination of the Services with the City Systems and Materials or any materials, products or services not provided by Consultant; or any (5) third party products or services. Notwithstanding the foregoing, in order to be indemnified to the extent stated, the City must operate the Licensed Materials within the instructions and technical limits provided or approved by the Consultant. If such a claim is or is likely to be made, Consultant will, at its own expense and sole discretion, exercise one or the following remedies: (1) obtain for City the right to continue to use, the Services consistent with this Agreement; (2) modify the Services so they are non-infringing and in compliance with this Agreement; (3) terminate the applicable Services without liability for such termination other than the ongoing indemnity obligation hereunder. The foregoing states the entire obligation of Consultant and its suppliers, and the exclusive remedy of City, with respect to infringement of proprietary rights. c. Indemnification Procedure. The party claiming indemnification shall: (a) provide prompt written notice to the indemnifying party of any claim in respect of which the indemnity may apply; (b) relinquish control of the defense of the claim to the indemnifying party; and (c) provide the indemnifying party with all assistance reasonably requested in defense 20.d Packet Pg. 633 Attachment: Attachment 4 - Authorization to Purchase Web Services - Final Contract (7055 : Authorization to Purchase Website Hosting and 7 of the claim. The indemnifying party shall be entitled to settle any claim without the written consent of the indemnified party so long as such settlement only involves the payment of money by the indemnif ying party and in no way affects any rights of the indemnified party. The indemnities set forth herein shall not apply to the willfulness on the part of the indemnified party or negligence of the indemnified party. 18. Limited Warranty and Limitation of Liability. EXCEPT AS EXPRESSLY PROVIDED HEREIN, PROVIDER MAKES NO EXPRESS OR IMPLIED REPRESENTATIONS OR WARRANTIES, AND PROVIDER EXPRESSLY DISCLAIMS ANY IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, OR NON-INFRINGEMENT. PROVIDER EXPRESSLY DENIES ANY REPRESENTATION OR WARRANTY ABOUT THE ACCURACY OR CONDITION OF DATA OR THAT THE SERVICES OR RELATED SYSTEMS WILL OPERATE UNINTERRUPTED OR ERROR-FREE. NO CAUSE OR ACTION WHICH ACCRUED MORE THAN TWO (2) YEARS PRIOR TO THE FILING OF A SUIT ALLEGING SUCH CAUSE OF ACTION MAY BE ASSERTED UNDER THIS AGREEMENT BY EITHER PARTY. EXCEPT FOR THE PARTIES’ PAYMENT OBLIGATIONS, NEITHER PARTY WILL BE LIABLE TO THE OTHER FOR ANY INDIRECT, EXEMPLARY, SPECIAL, PUNITIVE, CONSEQUENTIAL, OR INCIDENTAL DAMAGES OR LOSS OF GOODWILL, DATA OR PROFITS, OR COST OF COVER. THE TOTAL LIABILITY OF EITHER PARTY TO THE OTHER, FOR ANY REASON, SHALL BE LIMITED TO $1,000,000.00. THE LIMITS ON LIABILITY IN THIS SECTION SHALL APPLY IN ALL CASES INCLUDING IF THE APPLICABLE CLAIM ARISES OUT OF BREACH OF EXPRESS OR IMPLIED WARRANTY, CONTRACT, TORT (INCLUDING NEGLIGENCE), OR STRICT PRODUCT LIABILITY, AND EVEN IF THE PARTY HAS BEEN ADVISED THAT SUCH DAMAGES ARE POSSIBLE OR FORESEEABLE. 18. California Labor Code Requirements. Consultant is aware of the requirements of California Labor Code Sections 1720 et seq. and 1770 et seq., as well as California Code of Regulations, Title 8, Section 16000, et seq., ("Prevailing Wage Laws"), which require the payment of prevailing wage rates and the performance of other requirements on certain “public works” and “maintenance” projects. If the Services are being performed as part of an applicable “public works” or “maintenance” project, as defined by the Prevailing Wage Laws, Consultant agrees to fully comply with such Prevailing Wage Laws, if applicable. Consultant shall defend, indemnify and hold the City, its elected 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, employment of apprentices, hours of labor and debarment of contractors and subcontractors. 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 20.d Packet Pg. 634 Attachment: Attachment 4 - Authorization to Purchase Web Services - Final Contract (7055 : Authorization to Purchase Website Hosting and 8 Industrial Relations. Consultant shall maintain registration for the duration of the Project and require the same of any subconsultants, as applicable. This Project may also be subject to compliance monitoring and enforcement by the Department of Industrial Relations. It shall be Consultant’s sole responsibility to comply with all applicable registration and labor compliance requirements. 19. 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. 20. 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. 21. Termination This Agreement may be terminated as follows: (a) by either party upon the failure by the other party to perform any material obligation related to such Agreement that is not cured within thirty (30) days after receipt of written notice and demand for cure from the affected party; (b) by either party upon the violation by the other party of any applicable state or federal law, statute, rule or regulation in relation to its performance of the Agreement; or (c) by Consultant, upon thirty (30) days written notice if undisputed payments are in arrears. Notwithstanding the foregoing, City may terminate this Agreement by giving six (6) months’ written notice to Consultant. City shall pay Consultant a pro -rated amount for the portion of any upcoming and not-yet-paid Annual Software-as-a-Service period that begins during the six-month notice period. City shall not be liable for any costs other than as specified herein. 22. Attorneys’ Fees. In the event that litigation is brought by any Party in connection with this Agreement, the prevailing Party shall be entitled to recover from the opposing Party all costs and expenses, including reasonable attorneys’ fees, incurred by the prevailing Party in the exercise of any of its rights or remedies he reunder or the enforcement of any of the terms, conditions, or provisions hereof. The costs, salary, and expenses of the City Attorney’s Office in enforcing this Agreement on behalf of the City shall be considered as “attorneys’ fees” for the purposes of this Agreement. 23. Responsibility for Errors. Consultant shall be responsible for its work and results under this Agreement. Consultant, when requested, shall furnish clarification and/or explanation as may be required by the City’s representative, regarding any services rendered under this Agreement at no additional cost to City. In the event that an error or omission attributable to Consultant’s professional services occurs, Consultant shall, at no cost to City, provide all other services necessary to rectify and correct the matter to the sole satisfaction of the City and to participate in any meeting required with regard to the correction. 24. Prohibited Employment. Consultant shall not employ any current employee of 20.d Packet Pg. 635 Attachment: Attachment 4 - Authorization to Purchase Web Services - Final Contract (7055 : Authorization to Purchase Website Hosting and 9 City to perform the work under this Agreement while this Agreement is in effect. 25. Costs. Each Party shall bear its own costs and fees incurred in the preparation and negotiation of this Agreement and in the performance of its obligations hereunder except as expressly provided herein. 26. 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. 27. Organization. Consultant shall assign a Project Manager, who shall not be removed from the Project or reassigned without the prior written consent of the City, which consent shall not be unreasonably withheld. 28. Limitation of Agreement. This Agreement is limited to and includes only the work included in the Project described above. 29. 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 the following addresses and shall be effective upon receipt thereof: CITY: City of San Bernardino Vanir Tower, 290 North D Street San Bernardino, CA 92401 Attn: Mitch Cochran Director of Information Technology With Copy To: City of San Bernardino Vanir Tower, 290 North D Street San Bernardino, CA 92401 Attn: Sonia Carvalho, City Attorney CONSULTANT: Intrado Interactive Services Corporation 1027 South Main Street, Suite 503 Joplin, MO 64801 Attn: Michael Goulet Vice President Sales 30. 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. 31. 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. 20.d Packet Pg. 636 Attachment: Attachment 4 - Authorization to Purchase Web Services - Final Contract (7055 : Authorization to Purchase Website Hosting and 10 32. Entire Agreement. This Agreement, including Exhibit “A,” 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 is an integrated Agreement. 33. Severability. If any provision of this Agreement is determined by a court of competent jurisdiction to be invalid, illegal, or unenforceable for any reason, such determination shall not affect the validity or enforceability of the remaining terms and provisions hereof or of the offending provision in any other circumstance, and the remaining provisions of this Agreement shall remain in full force and effect. 34. Assignment. This Agreement and Orders may not be assigned or transferred by a party thereto without the prior written consent of the other party thereto, which consent shall not be unreasonably withheld. Notwithstanding the foregoing, Consultant may freely assign this Agreement and Orders to an Affiliate or to an acquirer of all or part of Provider’s business or assets, whether by merger or acquisition. 35. Non-Waiver. The delay or failure of either Party at any time to require performance or compliance by the other Party of any of its obligations or agreements shall in no way be deemed a waiver of those rights to require such performance or compliance. No waiver of any provision of this Agreement shall be effective unless in writing and signed by a duly authorized representative of the Party against whom enforcement of a waiver is sought. The waiver of any right or remedy with respect to any occurrence or event shall not be deemed a waiver of any right or remedy with respect to any other occurrence or event, nor shall any waiver constitute a continuing waiver. 36. Time of Essence. Time is of the essence for each and every provision of this Agreement. 37. Headings. Paragraphs and subparagraph headings contained in this Agreement are included solely for convenience and are not intended to modify, explain, or to be a full or accurate description of the content thereof and shall not in any way affect the meaning or interpretation of this Agreement. 38. Amendments. Only a writing executed by all of the Parties hereto or their respective successors and assigns may amend this Agreement. 39. 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. 40. Prohibited Interests. Consultant maintains and warrants that it has neither employed nor retained any company or person, other than a bona fide employee working solely for Consultant, to solicit or secure this Agreement. Fu rther, Consultant warrants that it has not paid nor has it agreed to pay any company or person, other than a bona fide employee working 20.d Packet Pg. 637 Attachment: Attachment 4 - Authorization to Purchase Web Services - Final Contract (7055 : Authorization to Purchase Website Hosting and 11 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 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. 41. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original. All counterparts shall be construed together and shall constitute one single Agreement. 42. Authority. The persons executing this Agreement on behalf of the Parties hereto warrant that they are duly authorized to execute this Agreement on behalf of said Parties and that by doing so, the Parties hereto are formally bound to the provisions of this Agreement. [SIGNATURES ON FOLLOWING PAGE] 20.d Packet Pg. 638 Attachment: Attachment 4 - Authorization to Purchase Web Services - Final Contract (7055 : Authorization to Purchase Website Hosting and 12 SIGNATURE PAGE FOR PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND INTRADO INTERACTIVE SERVICES CORPORATION IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first written above. CITY OF SAN BERNARDINO Approved By: Robert D. Field City Manager Approved as to Form: Sonia Carvalho City Attorney Attested By: Genoveva Rocha, CMC, City Clerk CONSULTANT Signature Name Title 20.d Packet Pg. 639 Attachment: Attachment 4 - Authorization to Purchase Web Services - Final Contract (7055 : Authorization to Purchase Website Hosting and 13 EXHIBIT A 20.d Packet Pg. 640 Attachment: Attachment 4 - Authorization to Purchase Web Services - Final Contract (7055 : Authorization to Purchase Website Hosting and 14 20.d Packet Pg. 641 Attachment: Attachment 4 - Authorization to Purchase Web Services - Final Contract (7055 : Authorization to Purchase Website Hosting and 15 20.d Packet Pg. 642 Attachment: Attachment 4 - Authorization to Purchase Web Services - Final Contract (7055 : Authorization to Purchase Website Hosting and Page 1 Consent Calendar City of San Bernardino Request for Council Action Date: January 20, 2021 To: Honorable Mayor and City Council Members From: Robert D. Field, City Manager By:Eric McBride, Acting Chief of Police Subject: Adamson Police Products Purchase Order (All Wards) Recommendation Adopt Resolution No. 2021-11 of the Mayor and City Council of the City of San Bernardino, California, authorizing the Director of Finance to issue a Purchase Order in the amount of $75,000, with three single year renewal options, to Adamson Police Products for the purchase of safety equipment and supplies. Background The Police Department provides safety equipment and supplies that meet department specifications to sworn and civilian employees to ensu re they are properly equipped to carry out their assigned duties. The department issues equipment such as ballistic vests, pepper spray, leather gear and accessories (belts, holsters, etc.), as well as gas masks. Equipment is issued to every new police officer and some civilian employees that work in the field. Ballistic vests have a limited useful service life and must be replaced every five years. Discussion The City published Request for Quote 21-09 on September 22, 2020, and received bids from six different companies, attached hereto as Attachment 2. Only two of the six companies bid on each item listed in the RFQ. Adamson Police Products provided the lowest overall bid on the products listed. Adamson is a proven vendor that consistently provides quality equipment at competitive prices. It is anticipated that the department may have to replace or purchase new ballistic vests for as many as 50 officers over the coming year. Ballistic vests cost $1,060 each, which will be the department's biggest portion of equipment costs. The Police Department is requesting a Purchase Order in an amount not to exceed $75,000, with three single year renewal options in order to ensure the quality and consistency of the equipment supplied to personnel in the depart ment. 2020-2025 Strategic Targets and Goals The request to authorize the City Manager to issue a purchase order to Adamson Police Products aligns with Key Target No. 1: Financial Stability: Implement, maintain, and update a fiscal accountability plan. 21 Packet Pg. 643 7011 Page 2 Fiscal Impact The financial impact to the City is $75,000. There is sufficient funding in the FY 2020/21 Adopted Budget in account numbers 108-210-0082*5111 and 001-210-0086*5111. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution No. 2021-11, authorizing the Director of Finance to issue a Purchase Order in the amount of $75,000, with three single year renewal options, to Adamson Police Products for the purchase of safety equipment and sup plies. Attachments Attachment No. 1 Resolution No. 2021-11 Attachment No. 2 RFQ 21-09 Ward: All Synopsis of Previous Council Actions: None 21 Packet Pg. 644 RESOLUTION NO. 2021-11 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AUTHORIZING THE DIRECTOR OF FINANCE TO ISSUE A PURCHASE ORDER IN THE AMOUNT OF $75,000, WITH THREE SINGLE YEAR RENEWAL OPTIONS, TO ADAMSON POLICE PRODUCTS FOR THE PURCHASE OF SAFETY EQUIPMENT AND SUPPLIES WHEREAS, RFQ F-21-09 was issued for Police Duty Gear, Body Armor, Gas Masks and Vests; and WHEREAS, Adamson Police Products was found to be the best option bidder for the City. BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. The above recitals are true and correct and are incorporated herein by this reference. SECTION 2. The Director of Finance is hereby authorized to issue a purchase order to Adamson Police Products in an amount not to exceed $75,000. SECTION 3. That the City Council finds this Resolution is not subject to the California Environmental Quality Act (CEQA) in that the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty, as in this case, that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. SECTION 4. Severability. If any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications, and to this end the provisions of this Resolution are declared to be severable. SECTION 5. Effective Date. This Resolution shall become effective immediately. APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this ___ day of __________ 2021. John Valdivia, Mayor City of San Bernardino 21.a Packet Pg. 645 Attachment: Attachment No. 1 - Resolution No. 2021-11 [Revision 2] (7011 : Adamson Police Products Purchase Order (All Wards)) Resolution No. 2021-11 Attest: Genoveva Rocha, CMC, City Clerk Approved as to form: Sonia Carvalho, City Attorney 21.a Packet Pg. 646 Attachment: Attachment No. 1 - Resolution No. 2021-11 [Revision 2] (7011 : Adamson Police Products Purchase Order (All Wards)) Resolution No. 2021-11 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, City Clerk, hereby certify that the attached is a true copy of Resolution No. 2021-___, adopted at a regular meeting held on the ___ day of _______ 2021 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ REYNOSO _____ _____ _______ _______ CALVIN _____ _____ _______ _______ ALEXANDER _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2021. Genoveva Rocha, CMC, City Clerk 21.a Packet Pg. 647 Attachment: Attachment No. 1 - Resolution No. 2021-11 [Revision 2] (7011 : Adamson Police Products Purchase Order (All Wards)) 21.b Packet Pg. 648 Attachment: Attachment No. 2 - RFQ 21-09 (7011 : Adamson Police Products Purchase Order (All Wards)) 21.b Packet Pg. 649 Attachment: Attachment No. 2 - RFQ 21-09 (7011 : Adamson Police Products Purchase Order (All Wards)) 21.b Packet Pg. 650 Attachment: Attachment No. 2 - RFQ 21-09 (7011 : Adamson Police Products Purchase Order (All Wards)) 21.b Packet Pg. 651 Attachment: Attachment No. 2 - RFQ 21-09 (7011 : Adamson Police Products Purchase Order (All Wards)) 21.b Packet Pg. 652 Attachment: Attachment No. 2 - RFQ 21-09 (7011 : Adamson Police Products Purchase Order (All Wards)) 21.b Packet Pg. 653 Attachment: Attachment No. 2 - RFQ 21-09 (7011 : Adamson Police Products Purchase Order (All Wards)) 21.b Packet Pg. 654 Attachment: Attachment No. 2 - RFQ 21-09 (7011 : Adamson Police Products Purchase Order (All Wards)) 21.b Packet Pg. 655 Attachment: Attachment No. 2 - 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RFQ 21-09 (7011 : Adamson Police Products Purchase Order (All Wards)) City of San Bernardino TECHNICAL SPECIFICATIONS Annual purchase of Police duty gear, body armor, and gas masks NOTICE : “SPECIAL INSTRUCTIONS TO THE BIDDER” Services: Bidder shall complete right hand column indicating brief reasoning for Exceptions to requirements when not acceptable. State “Acceptable” if Requirements are agreeable as set forth on left hand column. Equipment: Bidder shall complete right hand column indicating specific size and or Make and model of all components when not exactly as specified. State “As Specified” if item is exactly as set forth in the left hand column. FAILURE TO COMPLETE RIGHT HAND COLUMN WILL INVALIDATE BID CATEGORY I ACCEPTABLE / AS SPECIFIED Safariland Black basket weave duty belt - Sam and Sally Brown Safariland Black basket weave belt keepers (set of four),2 snap (stainless), belt loop 2-1/4” Black basket weave HT holder, Bianchi #7914S Safariland Black basket weave OC holder, open top, fits Defense Technology MK4 3oz Safariland Black basket weave OC holder, closed top, fits Defense Technology MK3 1.4oz Safariland Black basket weave handcuff case, top flap, stainless snap #90-4 Safariland holster- Glock Gen 4- 20/21 #6360-3832-482 Safariland holster- Glock Gen 4- 17/22 #6360-832-482 Safariland holster- Glock Gen 5- 17 #6360-8325-482 Safariland Black basket weave magazine pouch, silver snap - Glock 20/21 #77-383-4 Safariland Black basket weave magazine holder, double, silver snap- Glock 17/22 #77-83-4 Peerless handcuffs, chain link, silver- Model 700 Wooden Baton- black- 26”/29” Black Grommet NO BID NO BID NO BID NO BID NO BID NO BID NO BID NO BID NO BID NO BID NO BID As Specified As Specified As Specified 21.b Packet Pg. 701 Attachment: Attachment No. 2 - RFQ 21-09 (7011 : Adamson Police Products Purchase Order (All Wards)) Safariland Black basket weave baton ring, single snap, silver, belt loop 2- ¼” OC- Defense Technology MK-4 360 X2 3oz OC- Defense Technology MK-3 360 1.4oz OC- Inert 3oz Nylon Ripp Hobble Yellow rain jackets/pants Yellow traffic safety vest CPR mask Safariland Level IIIA model # BA-3A00S-SM02 w/ 2nd Bolistic Vest cover Safariland Level IIIA model # BA-3A00S-SM02F w/ 2nd Vest cover Gas Mask- Avon Protection Systems C50 Gas Mask Filter-CTCF50 Canister Gas Mask Pouch with drop down capabilities NO BID NO BID NO BID NO BID As Specified NO BID NO BID As Specified NO BID NO BID As Specified Point Blank Model# HL6ABDBV0M 2nd carrier Model# HL6N00BV0M Point Blank Model# HT6ABDBV0M 2nd carrier Model# HL6N00BV0M 21.b Packet Pg. 702 Attachment: Attachment No. 2 - RFQ 21-09 (7011 : Adamson Police Products Purchase Order (All Wards)) City of San Bernardino RFQ# F-21-09, Police Duty Gear, Body Armor, Gas Masks and Vests Galls, LLC Response Experience and Qualifications Galls has many long-standing contracts across the United States with agencies of all sizes. Galls has three dedicated distribution centers and over 80 branch operations, consisting of contract service centers and retail storefronts. We have approximately 750 formal contracts that we service daily from one or more of our 80+ locations. Galls is the leading distributer of products from over 1600 suppliers. As the public safety industry leader, we pride ourselves on having the largest inventory in the industry. This means less backorders, faster service, and faster delivery. Galls has been in business for more than 53 years servicing the public safety market; specializing in law, fire, security, corrections, emergency medical services, federal government, military, postal, and transit uniforms and equipment. Galls employs more than 1200 employees. Galls generates over $535 million in annual sales by servicing over one million individuals and 68% of all public safety agencies annually. We are proud to serve America’s public safety professionals. • Founded in 1967 • Purchased by ARAMARK (1995) • Acquired Long Beach Uniform (2002) • Launched first custom website (2004) • Purchased by CI Capital Investment Group (2011) • Acquired Quartermaster Uniforms (2012) • Acquired Roy Tailors of Cincinnati/Columbus, OH (2013) • Acquired Best Uniforms, Blumenthal Uniforms, and Lone Star Uniforms (2014) 21.b Packet Pg. 703 Attachment: Attachment No. 2 - RFQ 21-09 (7011 : Adamson Police Products Purchase Order (All Wards)) City of San Bernardino RFQ# F-21-09, Police Duty Gear, Body Armor, Gas Masks and Vests Galls, LLC Response • Acquired AK Uniforms & Equipment Co., Sterling’s Public Safety Inc., A.M.E.’S Uniforms (2015) • Acquired U.S. Calvary, Apparel Sewn Right (ASR), Alamar Uniforms, Rosen’s Uniforms, Azar’s Uniforms, Neve’s Uniforms, Uniforms Unlimited (2016) • Acquired Arslan Uniforms, Patriot Outfitters, LLC, Carpenter Uniforms, Carpenter Uniforms and Promotional Products, Red the Uniform Tailor (2017) • Purchased by Charlesbank Capital Partners, LLC (2018) • Acquired KEEPRS, Inc., Miller Uniforms and Emblems, Inc., Cruse Uniforms & Equipment, Inc., Lark Uniforms, Samzie’s Uniforms (2018) • Acquired Universal Uniforms and Keystone Uniforms and On Guard Apparel (2019) Stocking, Distribution & Fulfillment Galls has a fully staffed Inventory Management Department (“IM”) that is responsible for purchasing and managing our inventory. On average Galls holds approximately $80M in on-hand inventory. The IM department utilizes an integrated inventory management forecasting system which is fully automated. The system uses complex algorithms to compute current and future needs on finished goods inventory. Galls’ IM Team reviews electronic data provided by the system and then adds human logic as well as customer input. Purchase Orders are then released for finished goods to our vendors. This process considers constraints such as lead time, process time, cycle time, instability in order patterns, and historical demand. For many of our large programs we have negotiated with vendors to hold safety stock levels which allow us to react quicker on replenishment needs. Galls’ distribution center (DC) is in Lexington, KY. The DC is approx. 350,000 square feet, containing 40,000 active pick locations and 38,000 reserve locations. Current capacity is 82% in active and 84% in reserve. Galls has a fully automated warehouse management software tool and state of the art conveyor system for order fulfillment allowing us to ship an average of 2,700 orders daily or 700k orders annually. Also note, Galls has 2 additional distribution centers; one in Cerritos, California with 50,000 square feet and the other in Olathe, Kansas with 30,000 square feet. 21.b Packet Pg. 704 Attachment: Attachment No. 2 - RFQ 21-09 (7011 : Adamson Police Products Purchase Order (All Wards)) City of San Bernardino RFQ# F-21-09, Police Duty Gear, Body Armor, Gas Masks and Vests Galls, LLC Response Product Availability Galls is the City of San Bernardino’s reliable source for quality, in-stock public safety equipment and apparel. Like you, we're quick, efficient, and effective. Galls understands that the demanding needs of your profession drive your purchasing decisions, so we demand the quality gear you require to do your job. As the public safety industry leader, we pride ourselves on having the largest inventory in the industry. However, your options do not end with our inventory; Galls will leverage our experience and knowledge to find the products you require in the rare event we do not inventory the item or brand. No one can compare to our full spectrum of in-house customization options for apparel and gear. Galls has the largest on-hand inventory in the public safety industry. This means less backorders, faster service and faster delivery. Galls also has the right inventory to match the market trends, so you are always ordering the latest and best in the industry. As a public safety professional, your gear must perform. After all, it may mean the difference between life and death. That's why the City of San Bernardino can count on Galls to offer only top-quality products. But we don't do it all alone. Galls partners with public safety leaders in manufacturing including brands such as ASP, Bates, BlackHawk, Elbeco, 5.11 Tactical, Flying Cross, Tru-Spec, Under Armour, and yes we apply our 50 years of knowledge and customer feedback to the Galls brand. (Remainder of page intentionally left blank) 21.b Packet Pg. 705 Attachment: Attachment No. 2 - RFQ 21-09 (7011 : Adamson Police Products Purchase Order (All Wards)) City of San Bernardino RFQ# F-21-09, Police Duty Gear, Body Armor, Gas Masks and Vests Galls, LLC Response Key Personnel Teresa Beck Regional Account Executive beck-theresa@galls.com 562-445-4696 Teresa will be your outside Account Representative – she will be available to consult regarding orders under the contract and any service needed. Jason Campbell Managed Account Representative campbell-jason@galls.com 562-304-7805 Jason will be your inside Account Representative. He can answer questions regarding the contract and the products requested and he will help ensure orders under the contract are processed accurately. Melissa Castro Contracts Manager castro-melissa@galls.com 562-304-7354 Melissa will be your contract administrator and will help with all contract questions and concerns, including any extensions of the contract. David House Senior Director of Sales house-david@galls.com 562-372-4031 Dave will be your contact should any concerns arise outside of the service you receive from Teresa, Jason, and Melissa. (Remainder of page intentionally left blank) 21.b Packet Pg. 706 Attachment: Attachment No. 2 - RFQ 21-09 (7011 : Adamson Police Products Purchase Order (All Wards)) City of San Bernardino RFQ# F-21-09, Police Duty Gear, Body Armor, Gas Masks and Vests Galls, LLC Response References Client Name Riverside County Sheriff Product Description Uniforms, duty gear, and body armor Start and End Dates 2010 - present Project Manager Lt. Will Edwards Phone (951) 536-1705 Email wjedwards@riversidesheriff.org Client Name San Bernardino County Sheriff Product Description Body Armor Start and End Dates 2015 - present Project Manager Sgt. Mike New Phone (909) 361-2426 Email mnew@sbcsd.org Product Supplied by Galls Body armor Client Name Huntington Beach Police Department Product Description Uniforms and equipment Start and End Dates 2015 – present Project Manager Lt. Bo Svendsbo Phone (714) 609-3452 Email Gsvendsbo@hbpd.org Client Name Anaheim Police Department Product Description Uniforms, duty gear, and body armor Start and End Dates 2010 – present Project Manager Lt. LaRochelle Phone (714) 936-9088 Email Rlarochelle@anaheim.net Client Name Irvine Police Department Product Description Uniforms, duty gear, and body armor Start and End Dates 2012 – present Project Manager Justin Patterson Phone (949) 724-7000 Email jpatterson@ci.irvine.ca.us 21.b Packet Pg. 707 Attachment: Attachment No. 2 - RFQ 21-09 (7011 : Adamson Police Products Purchase Order (All Wards)) PRICE FORM Provide pricing that is a Firm Fixed Fee # DESCRIPTION QTY AMOUNT 1 Safariland Black basket weave duty belt - Sam and Sally Brown 1 2 Safariland Black basket weave belt keepers (set of four),2 snap (stainless), belt loop 2 -1/4” 1 3 Black basket weave HT holder, Bianchi #7914S 1 4 Safariland Black basket weave OC holder, open top, fits Defense Technology MK4 3oz 1 5 Safariland Black basket weave OC holder, closed top, fits Defense Technology MK3 1.4oz 1 6 Safariland Black basket weave handcuff case, top flap, stainless snap #90-4 1 7 Safariland holster- Glock Gen 4- 20/21 #6360-3832- 482 1 8 Safariland holster- Glock Gen 4- 17/22 #6360-832-482 1 9 Safariland holster- Glock Gen 5- 17 #6360-8325-482 1 10 Safariland Black basket weave magazine pouch, silver snap- Glock 20/21 #77-383-4 1 11 Safariland Black basket weave magazine holder, double, silver snap- Glock 17/22 #77-83-4 1 12 Peerless handcuffs, chain link, silver- Model 700 1 13 Wooden Baton- black- 26”/29” 1 14 Black Grommet 1 15 Safariland Black basket weave baton ring, single snap, silver, belt loop 2- ¼” 1 16 OC- Defense Technology MK-4 360 X2 3oz 1 17 OC- Defense Technology MK-3 360 1.4oz 1 18 OC- Inert 3oz 1 19 Nylon Ripp Hobble 1 20 Yellow rain jackets/pants 1 21 Yellow traffic safety vest 1 22 CPR mask 1 23 Safariland Level IIIA model #BA-3A00S-SM02 w/ 2nd vest cover 1 24 Safariland Level IIIA model #BA-3A00S-SM02F w/2nd vest cover 1 25 Gas Mask – Avon Protection Systems C50 1 NO BID NO BID NO BID NO BID NO BID NO BID NO BID NO BID NO BID NO BID NO BID $19.65 $5.80 $1.90 NO BID NO BID NO BID NO BID $10.50 NO BID NO BID $4.05 $764.35- VEST $93.95- 2ND VEST COVER $764.35- VEST $93.95- 2ND VEST COVER NO BID 21.b Packet Pg. 708 Attachment: Attachment No. 2 - RFQ 21-09 (7011 : Adamson Police Products Purchase Order (All Wards)) 26 Gas Mask Filter – CTCF50 Canister 1 27 Gas Mask Pouch with drop down capabilities 1 Total $ If applicable discount of _______% if __________ or more are ordered (amount) Are there any other additional or incidental costs, which will be required by your firm in order to meet the requirements of the Technical Specifications? Yes / No . (circle one). If you answered “Yes”, please provide detail of said additional costs: Please indicate any elements of the Technical Specifications that cannot be met by your firm. Have you included in your bid all informational items and forms as requested? Yes / No (circle one). If you answered “No”, please explain: Terms and conditions as set forth in this RFQ apply to this bid. This bid has been reviewed and found to be correct and final. The undersigned is authorized to providing pricing: Name and Title of Authorized Representative: ________________________________ ________________________________ Signature : ____________________________________________________ Company Name: ________________________________________________ Address: ______________________________________________________ Phone/fax and email: _____________________________________________ NO BID $14.20 David Scheve, CFO Galls, LLC 1340 Russell Cave Road, Lexington, KY 40505 800-876-4242 / 877-914-2557 / brewer-tiffany@galls.com N/A 1,772.70 21.b Packet Pg. 709 Attachment: Attachment No. 2 - RFQ 21-09 (7011 : Adamson Police Products Purchase Order (All Wards)) October 9, 2020 Attn: Vanessa Slouka City of San Bernardino 290 North D Street San Bernardino, CA Re: RFQ# F-21-09, Police Duty Gear, Body Armor, Gas Masks and Vests- Separate Items Dear Vanessa Slouka: Please note the following items will be separated on your order/invoice. The individual pricing will total up to the bid price. Bid Line # GQ Item# MFG Model # MFG Name Bid/RFP Item Description Bid Price 23 BL635 HL6ABDBV0M Point Blank POINT BLANK AXBIIIA HILITE 1 CARRIER $764.35 23 BP568 MALE HL6N00BV0M Point Blank HI LITE CONCEALABLE CARRIER FIT $93.95 24 BL635 HT6ABDBV0M Point Blank POINT BLANK AXBIIIA HILITE 1 CARRIER $764.35 24 BP568 FMLE HL6N00BV0M Point Blank HI LITE CONCEALABLE CARRIER FIT $93.95 Thank you, Tiffany Brewer Sr. Mgr. Contract Compliance Galls, LLC 21.b Packet Pg. 710 Attachment: Attachment No. 2 - RFQ 21-09 (7011 : Adamson Police Products Purchase Order (All Wards)) SUBCONTRACTOR’S LIST As required by California State Law, the General Contractor bidding will hereinafter state the subcontractor who will be the subcontractor on the job for each particular trade or subdivision of the work in an amount in excess of one- half of one percent of the General Contractor’s total bid and will state the firm name and principal location of the mill, shop, or office of each. If a General Contractor fails to specify a subcontractor, or if he specifies more than one subcontractor for the same portion of work to be performed under the contract in excess of one-half of one percent, he agrees that he is fully qualified to perform that portion himself and that he shall perform that portion himself. DIVISION OF WORK OR TRADE NAME OF FIRM OR CONTRACTOR LOCATION CITY ______________________ ________________________ Print Name Signature of Bidder Company Name: __________________________________________ Address: __________________________________________ REJECTION OF BIDS The undersigned agrees that the City of San Bernardino reserves the right to reject any or all bids, and reserves the right to waive informalities in a bid or bids not affected by law, if to do seems to best serve the public interest. N/A David Scheve Galls, LLC 1340 Russell Cave Road, Lexington, KY 40505 21.b Packet Pg. 711 Attachment: Attachment No. 2 - RFQ 21-09 (7011 : Adamson Police Products Purchase Order (All Wards)) 21.b Packet Pg. 712 Attachment: Attachment No. 2 - RFQ 21-09 (7011 : Adamson Police Products Purchase Order (All Wards)) 21.b Packet Pg. 713 Attachment: Attachment No. 2 - RFQ 21-09 (7011 : Adamson Police Products Purchase Order (All Wards)) 21.b Packet Pg. 714 Attachment: Attachment No. 2 - RFQ 21-09 (7011 : Adamson Police Products Purchase Order (All Wards)) 21.b Packet Pg. 715 Attachment: Attachment No. 2 - RFQ 21-09 (7011 : Adamson Police Products Purchase Order (All Wards)) 21.b Packet Pg. 716 Attachment: Attachment No. 2 - RFQ 21-09 (7011 : Adamson Police Products Purchase Order (All Wards)) 21.b Packet Pg. 717 Attachment: Attachment No. 2 - RFQ 21-09 (7011 : Adamson Police Products Purchase Order (All Wards)) 21.b Packet Pg. 718 Attachment: Attachment No. 2 - RFQ 21-09 (7011 : Adamson Police Products Purchase Order (All Wards)) 21.b Packet Pg. 719 Attachment: Attachment No. 2 - RFQ 21-09 (7011 : Adamson Police Products Purchase Order (All Wards)) 21.b Packet Pg. 720 Attachment: Attachment No. 2 - RFQ 21-09 (7011 : Adamson Police Products Purchase Order (All Wards)) 21.b Packet Pg. 721 Attachment: Attachment No. 2 - RFQ 21-09 (7011 : Adamson Police Products Purchase Order (All Wards)) 21.b Packet Pg. 722 Attachment: Attachment No. 2 - RFQ 21-09 (7011 : Adamson Police Products Purchase Order (All Wards)) 21.b Packet Pg. 723 Attachment: Attachment No. 2 - RFQ 21-09 (7011 : Adamson Police Products Purchase Order (All Wards)) 21.b Packet Pg. 724 Attachment: Attachment No. 2 - RFQ 21-09 (7011 : Adamson Police Products Purchase Order (All Wards)) 21.b Packet Pg. 725 Attachment: Attachment No. 2 - RFQ 21-09 (7011 : Adamson Police Products Purchase Order (All Wards)) 21.b Packet Pg. 726 Attachment: Attachment No. 2 - RFQ 21-09 (7011 : Adamson Police Products Purchase Order (All Wards)) 21.b Packet Pg. 727 Attachment: Attachment No. 2 - RFQ 21-09 (7011 : Adamson Police Products Purchase Order (All Wards)) 21.b Packet Pg. 728 Attachment: Attachment No. 2 - RFQ 21-09 (7011 : Adamson Police Products Purchase Order (All Wards)) 21.b Packet Pg. 729 Attachment: Attachment No. 2 - RFQ 21-09 (7011 : Adamson Police Products Purchase Order (All Wards)) 21.b Packet Pg. 730 Attachment: Attachment No. 2 - RFQ 21-09 (7011 : Adamson Police Products Purchase Order (All Wards)) 21.b Packet Pg. 731 Attachment: Attachment No. 2 - RFQ 21-09 (7011 : Adamson Police Products Purchase Order (All Wards)) 21.b Packet Pg. 732 Attachment: Attachment No. 2 - RFQ 21-09 (7011 : Adamson Police Products Purchase Order (All Wards)) 21.b Packet Pg. 733 Attachment: Attachment No. 2 - RFQ 21-09 (7011 : Adamson Police Products Purchase Order (All Wards)) 21.b Packet Pg. 734 Attachment: Attachment No. 2 - RFQ 21-09 (7011 : Adamson Police Products Purchase Order (All Wards)) 21.b Packet Pg. 735 Attachment: Attachment No. 2 - RFQ 21-09 (7011 : Adamson Police Products Purchase Order (All Wards)) 21.b Packet Pg. 736 Attachment: Attachment No. 2 - RFQ 21-09 (7011 : Adamson Police Products Purchase Order (All Wards)) 21.b Packet Pg. 737 Attachment: Attachment No. 2 - RFQ 21-09 (7011 : Adamson Police Products Purchase Order (All Wards)) 21.b Packet Pg. 738 Attachment: Attachment No. 2 - RFQ 21-09 (7011 : Adamson Police Products Purchase Order (All Wards)) 21.b Packet Pg. 739 Attachment: Attachment No. 2 - RFQ 21-09 (7011 : Adamson Police Products Purchase Order (All Wards)) 21.b Packet Pg. 740 Attachment: Attachment No. 2 - RFQ 21-09 (7011 : Adamson Police Products Purchase Order (All Wards)) 21.b Packet Pg. 741 Attachment: Attachment No. 2 - RFQ 21-09 (7011 : Adamson Police Products Purchase Order (All Wards)) 21.b Packet Pg. 742 Attachment: Attachment No. 2 - RFQ 21-09 (7011 : Adamson Police Products Purchase Order (All Wards)) Page 1 Consent Calendar City of San Bernardino Request for Council Action Date: January 20, 2021 To: Honorable Mayor and City Council Members From: Robert D. Field, City Manager By:Eric McBride, Acting Chief of Police Subject: Professional Services Agreement for Police Mobile Application (All Wards) Recommendation Adopt Resolution No. 2021-12 of the Mayor and City Council of the City of San Bernardino, California, authorizing the City Manager to execute a Professional Services Agreement between the City of San Bernardino and ITsimple and issue a purchase order in an amount not to exceed $40,000 to develop and provide services for a public safety mobile device application. Background In May of 2020, the San Bernardino Police Department ap plied for grant funding through the Bureau of Justice Assistance (BJA) Fiscal Year 2020 Coronavirus Emergency Supplemental Funding Program. The grant application process included descriptions of proposed projects that would assist the Police Department with preparation for, prevention of, and the response to COVID -19. One of the projects proposed in the grant application was the development of a mobile device application for the Police Department. This project was proposed to create an alternate avenue f or the delivery of some police services and the distribution of information or public alerts while minimizing person-to-person contact and preventing transmission of the Coronavirus from person to person. The grant proposal was approved, and the total gr ant award was $632,422 for the completion of all projects listed in the proposal. From the total grant award amount, $60,000 in funding was designated for the mobile device application project. On June 17, 2020, the Mayor and City Council adopted Resolut ion 2020-135 to accept the BJA Fiscal Year 2020 Coronavirus Emergency Supplemental Funding Program Grant. Discussion The spread of the Coronavirus to the United States in 2020 highlighted the need to find alternate methods of delivering police services a nd sharing information with the community in a way that would comply with health department guidelines requiring social distancing and the avoidance of unnecessary in -person contact. In addition to the urgency to find innovative ways to deliver police ser vices created by the pandemic, the Police Department has long sought to improve response times and provide 22 Packet Pg. 743 7020 Page 2 information and services in a manner that makes it easier and faster for the public to obtain assistance from a police department with limited person nel. The Police Department has offered both online and telephone police reporting and has sought to increase engagement with the community through web pages and social media. This has provided some relief regarding the issues of convenience in accessing police services or information and reducing response times; however, it is possible to increase those improvements through the creation of a mobile application for the Police Department. A mobile application would allow for access to information and some police reporting services on mobile devices and update the Police Department’s communication capabilities so that they are more consistent with modern technology and public communication preferences. In October 2020, the City initiated a request for proposals for the creation of a mobile device application for the San Bernardino Police Department. As a result, the City received 18 proposals from various technology development, marketing, and consulting companies. Each of the proposals was reviewed, and the top six companies capable of meeting all or most of the requirements indicated in the request for proposals, at or near the budgeted cost for the project, were selected for additional interviews. Of those six companies, five responded to the request for an additional interview. The below listed table depicts each company that participated in the interview process, the costs associated with each proposal, and an indication of their ability to completely meet the bid requirements. Company Name Year One Cost Year Two Cost Total Two Year Cost Meets All Requirements Apex Mobile $7,500 $3,500 $11,000 No ITsimple $24,880 $9885 $34,765 Yes Atlas One $28,800 $28,800 $57,600 Yes Jack Frost Design $49,228.75 $16,500 $65,728 Yes Red River Consulting $77,246.66 $8,464.56 $85,711.22 Yes After speaking with each company and discussing their proposals, the costs associated with them, and their ability to meet the requirements of the bid request, the proposals from Jack Frost Design and Red River Consulting were eliminated from consideration based on cost. Each of these proposals was above the project budget, and the proposals did not include benefits that would merit seeking a budget increase for the project. Apex Mobile submitted a proposal that met most requirements at an attractive cost, but it did not meet all of the specifications of the request for proposals posted at the beginning of the bidding process. The missing specification of most concern was the ability to push emergency notifications to small geographic areas as needed for individual emergency events. This feature was requested to improve public safety by more rapidly notifying residents in affected areas of hazards or emergency situations that would require their immediate attention or action. Although the cost of the Apex Mobile was attractive, the determination was made that the benefit of its lower cost did 22 Packet Pg. 744 7020 Page 3 not outweigh the absence of this feature. The two remaining proposals were from Atlas One and ITsimple. Each of these proposals could meet the specifications established in the request for proposals and came within the budget for the project. Because both companies could meet all of the project requirements, the lower cost proposal submitted by ITsimple was selected. The BJA Fiscal Year 2020 Coronavirus Emergency Supplemental Funding Program Grant approved the expenditure of up to $60,000 of grant funding for the development and purchase of a public safety mobile device application. Staff is requesting a Purchase Order to be issued for an amount not to exceed $40,000 to pay for the start- up cost, two years of maintenance, and cover unforeseen expenses that may result from additional features requested during the development process. 2020-2025 Strategic Targets and Goals The request to spend grant funds for contract services with ITsimple to create a mobile application for the Police Department aligns with Key Target No. 2a: Focused, Aligned Leadership and Unified Community - develop and implement a community engagement plan and Key Target No. 3c: Improved Quality of Life - constantly evaluate public safety service delivery models to enhance the quality of service. Fiscal Impact The fiscal impact to the City is $40,000, which is included in the FY 2020/21 Adopted Budget in account number 123-210-8784*5167. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution No. 2021-12 authorizing the City Manager to execute a Professional Services Agreement between the City of San Bernardino and ITsimple and issue a purchase order in an amount not to exceed $40,000 to develop and provide services for a public safety mobile device application. Attachments Attachment 1 Resolution No. 2021-12 Attachment 2 ITsimple PSA 2021 Attachment 3 PSA Exhibit "A," Scope of Services (RFP) Ward: All Synopsis of Previous Council Action: n/a 22 Packet Pg. 745 RESOLUTION NO. 2021-12 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AUTHORIZING THE CITY MANAGER TO EXECUTE A PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND ITSIMPLE AND ISSUE A PURCHASE ORDER IN AN AMOUNT NOT TO EXCEED $40,000 TO DEVELOP AND PROVIDE SERVICES FOR A PUBLIC SAFETY MOBILE DEVICE APPLICATION WHEREAS, the City of San Bernardino has been awarded the Bureau of Justice Assistance Coronavirus Emergency Supplemental Funding Program Grant in the amount of $632,422; and, WHEREAS, the City proposed, and received approval to use a portion of those grant funds for the development of a mobile device application for the Police Department to allow for greater access to police services and information; and WHEREAS, RFQ F-21-11 was issued requesting proposals for the development of a mobile application for the Police Department and from the 18 vendor responses, ITsimple wa s selected as the best choice bidder. BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. The above recitals are true and correct and are incorporated herein by this reference. SECTION 2. The City Manager is hereby authorized to execute professional services agreement, attached hereto as Exhibit “A,” between ITsimple, LC and the City of San Bernardino. SECTION 3. The Director of Finance is hereby authorized to issue a purchase order to ITsimple, LC, of Alpharetta, Georgia, to develop and service a public safety mobile device application at a cost not to exceed $40,000. SECTION 4. That the City Council finds this Resolution is not subject to the California Environmental Quality Act (CEQA) in that the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty, as in this case, that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. 22.a Packet Pg. 746 Attachment: Attachment 1- Resolution No. 2021-12 (7020 : Professional Services Agreement for Police Mobile Application (All Wards)) Resolution No. 2021-12 SECTION 5. Severability. If any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications, and to this end the provisions of this Resolution are declared to be severable. SECTION 6. Effective Date. This Resolution shall become effective immediately. APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this 20th day of January, 2021. John Valdivia, Mayor City of San Bernardino Attest: Genoveva Rocha, CMC, City Clerk Approved as to form: Sonia Carvalho, City Attorney 22.a Packet Pg. 747 Attachment: Attachment 1- Resolution No. 2021-12 (7020 : Professional Services Agreement for Police Mobile Application (All Wards)) Resolution No. 2021-12 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, City Clerk, hereby certify that the attached is a true copy of Resolution No. 2021-___, adopted at a regular meeting held on the ___ day of _______, 2021, by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ REYNOSO _____ _____ _______ _______ CALVIN _____ _____ _______ _______ ALEXANDER _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2021. Genoveva Rocha, CMC, City Clerk 22.a Packet Pg. 748 Attachment: Attachment 1- Resolution No. 2021-12 (7020 : Professional Services Agreement for Police Mobile Application (All Wards)) 1 PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND ITsimple This Agreement is made and entered into as of January 20, 2021, by and between the City of San Bernardino, a charter city and municipal corporation organized and operating under the laws of the State of California with its principal place of business at Vanir Tower, 290 North D Street, San Bernardino, CA 92401 (“City”), and ITsimple LC, a Georgia limited liability company, with its principal place of business at 1250 Morris Rd, Alpharetta, Georgia (hereinafter referred to as “Consultant”). City and Consultant are hereinafter sometimes referred to individually as “Party” and collectively as the “Parties.” RECITALS A. City is a public agency of the State of California and is in need of professional services for the following project: Development of a Police Mobile Application (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. Incorporation of Recitals. The recitals above are true and correct and are hereby incorporated herein by this reference. 2. Services. Consultant shall provide the City with the services described in the Scope of Services attached hereto as Exhibit “A.” 3. Professional Practices. All professional services to be provided by Consultant pursuant to this Agreement shall be provided by personnel identified in their proposal. Consultant warrants that Consultant is familiar with all laws that may affect its performance of this Agreement and shall advise City of any changes in any laws that may affect Consultant’s performance of this Agreement. Consultant further represents that no City employee will provide any services under this Agreement. 4. Compensation. a. Subject to paragraph 4(b) below, the City shall pay for such services in accordance with the Schedule of Charges set forth in Exhibit “A.” b. In no event shall the total amount paid for services rendered by Consultant under this Agreement exceed the sum of $40,000. This amount is to cover all related costs, and the City will not pay any additional fees for printing expenses. Consultant may submit invoices 22.b Packet Pg. 749 Attachment: Attachment 2- ITsimple PSA 2021 (7020 : Professional Services Agreement for Police Mobile Application (All Wards)) 2 to City for approval. Said invoice shall be based on the total of all Consultant’s services which have been completed to City’s sole satisfaction. City shall pay Consultant’s invoice within forty- five (45) days from the date City receives said invoice. The invoice shall describe in detail the services performed and the associated time for completion. Any additional services approved and performed pursuant to this Agreement shall be designated as “Additional Services” and shall identify the number of the authorized change order, where applicable, on all invoices. 5. 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. 6. Term. This Agreement shall commence on the Effective Date and continue through the completion of services as set forth in Exhibit “A,” unless the Agreement is previously terminated as provided for herein (“Term”). 7. Maintenance of Records; Audits. a. Records of Consultant’s services relating to this Agreement shall be maintained in accordance with generally recognized accounting principles and shall be made available to City for inspection and/or audit at mutually convenient times for a period of four (4) years from the Effective Date. b. 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. 8. Time of Performance. Consultant shall perform its services in a prompt and timely manner and shall commence performance upon receipt of written notice from the City to proceed. Consultant shall complete the services required hereunder within Term. 9. 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; epi demics; 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 notice to the other Party describing the circumstances preventing continued performance and the efforts being made to resume performance of this Agreement. 22.b Packet Pg. 750 Attachment: Attachment 2- ITsimple PSA 2021 (7020 : Professional Services Agreement for Police Mobile Application (All Wards)) 3 10. 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. 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. 11. 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 u nder similar conditions. 12. Conflicts of Interest. During the term of this Agreement, Consultant shall at all times maintain a duty of loyalty and a fiduciary duty to the City and shall not accept payment from or employment with any person or entity which will constitute a conflict of interest with the City. 13. City Business Certificate. Consultant shall, prior to execution of this Agreement, obtain and maintain during the term of this Agreement a valid business registration certificate from the City pursuant to Title 5 of the City’s Municipal Code and any and all other licenses, permits, qualifications, insurance, and approvals of whatever nature that are legally required of Consultant to practice his/her profession, skill, or business. 14. 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. 15. Independent Consultant. 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. 16. 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 addition, Consultant shall not allow any subcontractor to commence work on any subcontract until it has secured all insurance required under this section. a. Additional Insured 22.b Packet Pg. 751 Attachment: Attachment 2- ITsimple PSA 2021 (7020 : Professional Services Agreement for Police Mobile Application (All Wards)) 4 The City of San Bernardino, its officials, officers, employees, agents, and volunteers shall be named as additional insureds on Consultant’s and its subconsultants’ policies of commercial general liability and automobile liability insurance using the endorsements and forms specified herein or exact equivalents. b. 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: 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 Contract (8) Broad Form Property Damage (9) Independent Consultants Coverage (iv) The policy shall contain no endorsements or provisions limiting coverage for (1) contractual liability; (2) cross liability exclusion for clai ms 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 elected and appointed 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. c. Automobile Liability 22.b Packet Pg. 752 Attachment: Attachment 2- ITsimple PSA 2021 (7020 : Professional Services Agreement for Police Mobile Application (All Wards)) 5 (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). (iii) The policy shall give City, its elected and appointed 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. d. 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. e. 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 coverage 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. f. Minimum Policy Limits Required (i) The following insurance limits are required for the Agreement: 22.b Packet Pg. 753 Attachment: Attachment 2- ITsimple PSA 2021 (7020 : Professional Services Agreement for Police Mobile Application (All Wards)) 6 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 per occurrence for bodily injury and property damage Employer’s Liability $1,000,000 per occurrence Professional Liability $1,000,000 per claim and aggregate (errors and omissions) (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. g. 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. h. 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 the 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 General 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. 22.b Packet Pg. 754 Attachment: Attachment 2- ITsimple PSA 2021 (7020 : Professional Services Agreement for Police Mobile Application (All Wards)) 7 (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 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. (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 Ci ty under other provisions of the Agreement or law. i. 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 insurance through surplus line brokers under applicable provisions of the California Insurance Code or any federal law. j. 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. 22.b Packet Pg. 755 Attachment: Attachment 2- ITsimple PSA 2021 (7020 : Professional Services Agreement for Police Mobile Application (All Wards)) 8 (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 the City Council, nor any member of the City Council, nor any of the officials, officers, employees, agents or volunteers shall be personally responsible for any liability arising under or by virtue of this Agreement. k. 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 particular subcontractors or subconsultants. 17. Indemnification. a. To the fullest extent permitted by law, Consultant shall defend (with counsel reasonably approved by the City), indemnify and hold the City, its elected and appointed officials, officers, employees, agents, and authorized volunteers free and harmless from any and all claims, demands, causes of action, suits, actions, proceedings, costs, expenses, liability, judgments, awards, decrees, settlements, loss, damage or injury of any kind, in law or equity, to property or persons, including wrongful death, (collectively, “Claims”) in any manner arising out of, pertaining to, or incident to any alleged 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 consequential damages, expert witness fees and attorneys’ fees and other related costs and expenses. Notwithstanding the foregoing, to the extent Consultant’s services are subject to Civil Code Section 2782.8, the above indemnity shall be limited, to the extent required by Civil Code Section 2782.8, to Claims that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Consultant. Consultant's obligation to indemnify shall not be restricted to insurance proceeds, if any, received by the City, the City Council, members of the City Counc il, its employees, or authorized volunteers. b. Additional Indemnity Obligations. Consultant shall defend, with counsel of City’s choosing and at Consultant’s own cost, expense and risk, any and all Claims covered by this section that may be brought or instituted against the City, its elected and appointed officials, employees, agents, or authorized volunteers. Consultant shall pay and satisfy any judgment, award or decree that may be rendered against the City, its elected and appointed officials, employees, agents, or authorized volunteers as part of any such claim, suit, action or other proceeding. Consultant shall also reimburse City for the cost of any settlement paid by the City, its elected and appointed officials, employees, agents, or authorized volunteers as part of any such claim, suit, action or other proceeding. Such reimbursement shall include payment for the City’s attorney's fees and costs, including expert witness fees. Consultant shall reimburse the City, its elected and appointed officials, employees, agents, or authorized volunteers, for any and all legal expenses and costs incurred by each of them in connection therewith or in enforcing the indemnity herein provided. Consultant’s obligation to indemnify shall not be restricted to 22.b Packet Pg. 756 Attachment: Attachment 2- ITsimple PSA 2021 (7020 : Professional Services Agreement for Police Mobile Application (All Wards)) 9 insurance proceeds, if any, received by the City, its elected and appointed officials, employees, agents, or authorized volunteers. 18. California Labor Code Requirements. Consultant is aware of the requirements of California Labor Code Sections 1720 et seq. and 1770 et seq., as well as California Code of Regulations, Title 8, Section 16000, et seq., ("Prevailing Wage Laws"), which require the payment of prevailing wage rates and the performance of other requirements on certain “public works” and “maintenance” projects. If the Services are being performed as part of an applicable “public works” or “maintenance” project, as defined by the Prevailing Wage Laws, Consultant agrees to fully comply with such Prevailing Wage Laws, if applicable. Consultant shall defend, indemnify and hold the City, its elected 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, employment of apprentices, hours of labor and debarment of contractors and subcontractors. 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. This Project may also be subject to compliance monitoring and enforcement by the Department of Industrial Relations. It shall be Consultant’s sole responsibility to comply with all applicable registration and labor compliance requirements. 19. 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. 20. 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. 21. 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 22.b Packet Pg. 757 Attachment: Attachment 2- ITsimple PSA 2021 (7020 : Professional Services Agreement for Police Mobile Application (All Wards)) 10 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. 22. Attorneys’ Fees. In the event that litigation is brought by any Party in connection with this Agreement, the prevailing Party shall be entitled to recover from the opposing Party all costs and expenses, including reasonable attorneys’ fees, incurred by the prevailing Party in the exercise of any of its rights or remedies hereunder or the enforcement of any of the terms, conditions, or provisions hereof. The costs, salary, and expenses of the City Attorney’s Office in enforcing this Agreement on behalf of the City shall be considered as “attorneys’ fees” for the purposes of this Agreement. 23. Responsibility for Errors. Consultant shall be responsible for its work and results under this Agreement. Consultant, when requested, shall furnish clarification and/or explanation as may be required by the City’s representative, regarding any services rendered under this Agreement at no additional cost to City. In the event that an error or omission attributable to Consultant’s professional services occurs, Consultant shall, at no cost to City, provide all other services necessary to rectify and correct the matter to the sole sati sfaction of the City and to participate in any meeting required with regard to the correction. 24. Prohibited Employment. Consultant shall not employ any current employee of City to perform the work under this Agreement while this Agreement is in effect. 25. Costs. Each Party shall bear its own costs and fees incurred in the preparation and negotiation of this Agreement and in the performance of its obligations hereunder except as expressly provided herein. 26. 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. 27. Organization. Consultant shall assign Stacy Lavelle as Project Manager. The Project Manager shall not be removed from the Project or reassigned without the prior written consent of the City. 28. Limitation of Agreement. This Agreement is limited to and includes only the work included in the Project described above. 29. 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 the following addresses and shall be effective upon receipt thereof: 22.b Packet Pg. 758 Attachment: Attachment 2- ITsimple PSA 2021 (7020 : Professional Services Agreement for Police Mobile Application (All Wards)) 11 CITY: City of San Bernardino Vanir Tower, 290 North D Street San Bernardino, CA 92401 Attn: City Manager With Copy To: City of San Bernardino Vanir Tower, 290 North D Street San Bernardino, CA 92401 Attn: Sonia Carvalho, City Attorney CONSULTANT: ITsimple LC 12150 Morris Road Alpharetta, GA 30005 Attn: Stacy Lavelle 30. 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. 31. 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. 32. Entire Agreement. This Agreement, including Exhibit “A,” 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 is an integrated Agreement. 33. Severability. If any provision of this Agreement is determined by a court of competent jurisdiction to be invalid, illegal, or unenforceable for any reason, such determination shall not affect the validity or enforceability of the remaining terms and provisions hereof o r of the offending provision in any other circumstance, and the remaining provisions of this Agreement shall remain in full force and effect. 34. 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 cons ent of City. Any attempted assignment without such consent shall be invalid and void. 35. Non-Waiver. The delay or failure of either Party at any time to require performance or compliance by the other Party of any of its obligations or agreements shall in no way be deemed a waiver of those rights to require such performance or compliance. No waiver of any provision of this Agreement shall be effective unless in writing and signed by a duly authorized representative of the Party against whom enforcement of a waiver is sought. The 22.b Packet Pg. 759 Attachment: Attachment 2- ITsimple PSA 2021 (7020 : Professional Services Agreement for Police Mobile Application (All Wards)) 12 waiver of any right or remedy with respect to any occurrence or event shall not be deemed a waiver of any right or remedy with respect to any other occurrence or event, nor shall any waiver constitute a continuing waiver. 36. Time of Essence. Time is of the essence for each and every provision of this Agreement. 37. Headings. Paragraphs and subparagraph headings contained in this Agreement are included solely for convenience and are not intended to modify, explain, or to be a full or accurate description of the content thereof and shall not in any way affect the meaning or interpretation of this Agreement. 38. Amendments. Only a writing executed by all of the Parties hereto or their respective successors and assigns may amend this Agreement. 39. 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. 40. Prohibited Interests. Consultant maintains and warrants that it has neither 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 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. 41. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original. All counterparts shall be construed together and shall constitute one single Agreement. 42. Authority. The persons executing this Agreement on behalf of the Parties hereto warrant that they are duly authorized to execute this Agreement on behalf of said Parties and that by doing so, the Parties hereto are formally bound to the provisions of this Agreement. [SIGNATURES ON FOLLOWING PAGE] 22.b Packet Pg. 760 Attachment: Attachment 2- ITsimple PSA 2021 (7020 : Professional Services Agreement for Police Mobile Application (All Wards)) 13 SIGNATURE PAGE FOR PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND ITSIMPLE LC IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first written above. CITY OF SAN BERNARDINO Approved By: Robert D. Field City Manager Approved as to Form: Sonia Carvalho City Attorney Attested By: Genoveva Rocha, CMC, City Clerk CONSULTANT Signature Name Title 22.b Packet Pg. 761 Attachment: Attachment 2- ITsimple PSA 2021 (7020 : Professional Services Agreement for Police Mobile Application (All Wards)) 14 EXHIBIT A 22.b Packet Pg. 762 Attachment: Attachment 2- ITsimple PSA 2021 (7020 : Professional Services Agreement for Police Mobile Application (All Wards))   Request for Proposal #F-21-11 Proposal for San Bernardino, CA Police Department October 2020 ATTN: Vanessa Slouka   Respondent Information: ITsimple, LC 12150 Morris Rd. Alpharetta, GA 30005 O: (678) 404-6677 || Ask@ITsimple.io 22.c Packet Pg. 763 Attachment: Attachment 3- PSA Exhibit "A," ITsimple Scope of Services (RFP) (7020 : Professional Services Agreement for Police Mobile 1 Bid Format and Content 1. Presentation Bids should not include any unnecessarily elaborate or promotional material. Information should be presented in the order in which it is requested. Lengthy narrative is discouraged, and presentations should be brief and concise. Bids shall contain the following: a. identification of Bidder, including name, address, and telephone; ITsimple, LC 12150 Morris Rd Alpharetta, GA 30005 b. proposed working relationship between Bidder and subcontractors, if applicable; N/A c. acknowledgement of receipt of all RFQ addenda, if any; ITsimple, LC acknowledges that we received Addendum #1 dated October 15, 2020 d. name, title, address, and telephone number of contact person during period of bid evaluation; Stacy Lavelle Project & Operations Manager 12150 Morris Rd. Alpharetta, GA 30005 O-678-404-6677 C-904-253-0074 Stacy@ITsimple.io e. a statement to the effect that the bid shall remain valid for a period of not less than 120 days from the date of submittal. ITsimple, LC agrees that this bid shall remain valid for a period of 120 days from the date of submission. 2. Exceptions/Deviations State any exceptions to or deviations from the requirements of this RFQ, stating “technical” exceptions on the Technical Specifications form, and “contractual” exceptions on a separate sheet of paper. Where Bidder wishes to propose alternative approaches to meeting the City’s technical or contractual requirements, these should be thoroughly explained. There are no exceptions or deviations from the requirements of the RFQ. 3. Qualifications, Related Experience and References of Bidder The information requested in this section should describe the qualifications of the firm, key staff and subcontractors performing projects within the past five years that are similar in size and scope to demonstrate competence to perform these services. Information shall include:   22.c Packet Pg. 764 Attachment: Attachment 3- PSA Exhibit "A," ITsimple Scope of Services (RFP) (7020 : Professional Services Agreement for Police Mobile 2 a. names of key staff that participated on named projects and their specific responsibilities with respect to this scope of work Stacy Lavelle Stacy will own the project’s management and will work diligently internally and with your staff to fully meet the requirements and deliverables on time. Stacy has over 30 years combined experience in project management, training, administration and customer support for Bank of America and Johnson & Johnson Vision. In addition, Stacy was Executive Assistant to the Fire Services Chief in Clay County, FL and delivers knowledge and experience working within a county. Stacy is certified as a Six Sigma Greenbelt. Reggie Peled Reggie will own the design and quality assurance aspects of the project. Reggie has been a software engineer since 2000 (C++) and ever since exercised web development (HTML, CSS, multiple web and graphics frameworks including Wordpress, Photoshop and Illustrator) as a hobby and for work. Reggie holds a Masters degree in Web Design and Online Communication from the University of Florida (Gainesville, FL). John Cao John will own the development aspect of the project. Front and backend. John has been developing applications for the last 10 years. John’s web programming experience with HTML, CSS, PHP, JavaScript, Angular and mobile frameworks led him to focus on full stack development. John holds an Associates degree in Web Development and Programming from Gwinnett Technical College. Ron Freeman Ron will own the product’s management and overseas all our project deliverables for full customer satisfaction. Ron has over 23 years of experience in IT, working for tech giants as Hewlett Packard, Symantec and Motorola. Ron held global roles in product management and technical alliances. Ron founded ITsimple with a vision to “simplify people’s everyday life” and a mission of “connecting communities”. Ron takes pride in our user-first mindset and literally named the company IT simple as this is what we do for our customers. Ron holds a Masters degree in Business Administration and multiple technical certifications. b. a summary of your firm’s demonstrated capability, including length of time that your firm has provided the services being requested in this Request for Proposal. Established in 2017, ITsimple, LC is a technology company that specializes in mobile-first app design and development paired with its proven Content Management Systems (CMS) for real-time updates uniquely designed to serve local governments.   22.c Packet Pg. 765 Attachment: Attachment 3- PSA Exhibit "A," ITsimple Scope of Services (RFP) (7020 : Professional Services Agreement for Police Mobile 3 ITsimple has proven to deliver its solutions to municipalities with over 100,000 residents and smaller organizations. We believe in customer service and implement that mindset with everything we do for our customers and their consumers. Most requirements (features) in this RFQ are already built, proven and in use by local governments and their constituents. It simply means that with our experience and already built technology (front and backend) we can deliver with quality and on a short timeline. Awards and Recognition ●July 2020 NXTSTAGE worldwide contest Finalist - KMUW Radio, Wichita, KS. NXTSTAGE 2020 finalists offer ready-to-use technologies deemed most promising to add value for local corporate and community partners looking to innovate. ITsimple was recognized in the Community Health & Vibrancy category that featured innovations to make communities and populations healthier, stronger, and more connected. ○Here’s a link to the official announcement: https://nxtstage.io/2020/07/30/nxtstage-pilot-competition-announces-2020-finalists/ ○See the eighth paragraph: “I​n the second quarter, total NXTSTAGE applicants grew to 263, spurred by a reopening of the competition’s Community Health & Vibrancy track on behalf of KMUW public radio. KMUW is seeking innovative tools to enable news and community engagement to reach the breadth of a community, including currently under-served people, via innovative personalized delivery systems. ​Two finalists,​ from Berlin, Germany, ​and Alpharetta, Ga.​, remain in competition for a pilot project with KMUW.” ○References: ■KMUW CEO, Mrs. Debra Fraser, fraser@kmuw.org ■NXTUS (the contest organizer) CEO, Mrs. Mary Beth Jarvis, marybeth@nxtus.io ●October 2020 - ELGL Haverford Award Top 25 . The Engaging Local Government Leaders (ELGL) Haverford Award celebrates the top companies that work with local government. ○Here’s a link to the official announcement: ​https://elgl.org/15-itsimple/ ○A quote from the announcement notice: “Congratulations on being named to the 2020 ELGL Haverford list, recognizing the top companies and organizations serving local government. Reading through your nominations was a delight; you're making a difference for the cities, counties, and districts you work with.” ○Reference: ELGL “Engaging Local Government Leaders” (the contest organizer) Co-Founder & Executive Director, Kirsten Wyatt, kirsten@elgl.org c. Provide at least five references that received similar services from your firm. The City of San Bernardino reserves the right to contact any of the organizations or individuals listed. Information provided shall include: • Client name • Project description   22.c Packet Pg. 766 Attachment: Attachment 3- PSA Exhibit "A," ITsimple Scope of Services (RFP) (7020 : Professional Services Agreement for Police Mobile 4 • Project start and end dates • Client project manager name, telephone number, and e-mail address References ●Mr. Gary Leftwitch, ​Communications Director,​ City of South Fulton: ○404-430-9450, ​gary.leftwich@cityofsouthfultonga.gov ●Mrs. Melanie Winfield, former ​Assistant City Manager (​recently transitioned into a role in the private sector. can be contacted in the number below) , City of South Fulton: ○901-497-9404, ​melanie.winfield@cityofsouthfultonga.gov ○Project:​ Subscription to our official native mobile app for local governments, It’sMyTown ​with one integrated data feed to Twitter and Facebook from our customer portal. Available on Android Google Play Store https://play.google.com/store/apps/details?id=io.ITsimple.ItsMyTown​ and Apple App Store ​https://apps.apple.com/us/app/itsmytown/id1463337549 ●Mr. Jim Gilvin, ​Mayor​, City of Alpharetta ○404-271-2716, ​jgilvin@alpharetta.ga.us ●Mr. Ben Burnett, ​Councilman, Technology Liaison​, City of Alpharetta ○ 770-652-7684, ​bburnett@alpharetta.ga.us ○Project:​ An official ​dedicated ​native mobile city of Alpharetta app with one integrated data feed to Twitter and Facebook from our customer portal. ●Mrs. Janet Rodgers, ​President and CEO​, Alpharetta Convention & Visitors Bureau ○404-483-4872, ​janet@awesomealpharetta.com ●Mrs. April Cochran, ​Director of Marketing​, Alpharetta Convention & Visitors Bureau ○678-297-2811, april@awesomealpharetta.com ○Project: a designated app for mobile, turning city tours into mobile guided tours (walk, bike, drive) while enabling the staff to update tours and landmarks from our customer portal in real-time. ○Link to open and install directly on mobile (not using the app stores, developed using an advanced newer technology): ​https://itsmy.tours/alpharetta-ga-cvb/home This section of the bid should establish the ability of Bidder to satisfactorily perform the required work by reasons of experience in performing work of a similar nature; demonstrated competence in the services to be provided; strength and stability of the firm; staffing capability; work load; record of meeting schedules on similar projects; and supportive client reference. Bidder shall: A. Provide a brief profile of the firm, including the types of services offered; the year founded; form of the organization (corporation, partnership, sole proprietorship); number, size, and location of offices; number of employees; ITsimple, LC is a limited liability company established in 2017. ITsimple employs twelve professionals in the fields of design and development, project management, customer success and marketers. Seven are   22.c Packet Pg. 767 Attachment: Attachment 3- PSA Exhibit "A," ITsimple Scope of Services (RFP) (7020 : Professional Services Agreement for Police Mobile 5 onsite in our home offices in Alpharetta, GA (balancing with remote work for COVID-19) and five are remote. ITsimple provides the following products and services: ●Content Management System (CMS) - Being a modern SaaS (Software as a Service) platform, our customer portal (SpotlightCMS) is designed, built and tested from the ground up​ for non-technical people to operate​. Spotlight CMS is a web-based, user-friendly, secure customer portal that is used by designated staff to create real-time updates to the website, our “It’sMyTown” native mobile apps for local governments and integrated with our customers social channels (Facebook/Twitter) as a single point of data entry. There’s absolutely no technical requirements from an infrastructure or personnel standpoint. We build, maintain, support and train users to operate the customer portal with confidence and simplicity. ●Mobile Apps - Our user-friendly community mobile apps (available for iOS and Android devices) empower local governments to provide digital services and share information and updates with residents and visitors on their mobile devices. Content is published simultaneously across all digital channels including social media within one administrative web-based secured portal (SpotlightCMS). Our customers enjoy an enhanced user experience and customer satisfaction created by the integration of our mobile apps with mobile calendars, camera, location, messaging, navigation, car services and other mobile applications that are already being used by the consumers of our apps. ●Hosted mobile-responsive and ADA compliant websites. B. Describe the firm’s experience in performing work of a similar nature to that solicited in this RFQ; It’sMyTown - a native mobile app for local governments An official native mobile city app with one integrated data feed to Twitter and Facebook from our customer portal/content management system, SpotlightCMS. It’sMyTown doesn’t require user registration and features real-time notifications and mobilizes public services and information. While publishing to the app, our customers can post to their social channels with a check of a box. It’sMyTown is available on the app stores (Apple and Android) or visit ​https://itsmy.town​ to download 1 It’sMyTown is used by the cities of South Fulton, GA and Alpharetta, GA serving over 150k in population. Project CityGuards​ - Based on customer feedback and requests, ITsimple is about to launch an official native mobile app for Public Safety. CityGuards is an app that leverages It’sMyTown features and functionalities like push notifications, jurisdiction setup, location and camera services (crime tips) and bring it under a dedicated Public Safety app to serve police and fire services. CityGuards is a one-stop app to feature law enforcement related services and information i.e most wanted, sex offenders, inmate listings and other services such as digital forms, etc. The app also includes an event's calendar, newsflash alongside recruiting for jobs and volunteering opportunities with the local Public Safety authority. 1 If your location doesn’t prompt other local governments on the platform, ​type “South Fulton” or zip code 30336 and see their version (you can use the app’s menu “Switch Town” button to see another customer like “Alpharetta” by typing in the city name or zip code 30009).   22.c Packet Pg. 768 Attachment: Attachment 3- PSA Exhibit "A," ITsimple Scope of Services (RFP) (7020 : Professional Services Agreement for Police Mobile 6 CityGuards will also feature one integrated data feed to Twitter and Facebook with a check of a box from our customer portal/content management system, SpotlightCMS. City Tours - unique website for mobile A designated app for mobile, turning city tours to mobile guided walk/drive tours while being able to update tours and landmarks from our customer portal in real-time using SpotlightCMS. SpotlightCMS - Content Management System SpotlightCMS customer administrative portal is a user-friendly website used by designated administrators and users on staff to add/edit/delete content on their website and/or mobile/web apps simultaneously and in real-time. ​Here's a quick introductory video (1.5 minute)​: https://www.youtube.com/watch?v=48lpZNt_sJ8&t=4s ITsimple customer portal, and our official website ITsimple.io were also developed in-house. C. Provide, as minimum, three references from current customers of a similar size as the City as related experience; reference shall furnish the name, title, email, address, and telephone number of the person(s) and the client organization who is most knowledgeable about the work performed. ●Mr. Gary Leftwitch, ​Communications Director,​ City of South Fulton: ○404-430-9450, ​gary.leftwich@cityofsouthfultonga.gov ●Mrs. Melanie Winfield, former ​Assistant City Manager (​recently transitioned into a role in the private sector. Can be contacted in the number below), City of South Fulton: ○901-497-9404, ​melanie.winfield@cityofsouthfultonga.gov ●Mr. Jim Gilvin, ​Mayor​, City of Alpharetta ○404-271-2716, ​jgilvin@alpharetta.ga.us ●Mr. Ben Burnett, ​Councilman, Technology Liaison​, City of Alpharetta ○ 770-652-7684, ​bburnett@alpharetta.ga.us 1. Appendices Information considered by Bidder to be pertinent to this RFQ and which has not been specifically solicited in any of the aforementioned sections may be placed in a separate appendix section. Bidders are cautioned, however, that this does not constitute an invitation to submit large amounts of extraneous materials; appendices should be relevant and brief. No appendices. ITsimple, LC can meet the entire scope as outlined in the RFQ. B. Licensing and Certification Requirements By submitting a bid, Bidder warrants that any and all licenses and/or certifications required by law, statute, code, or ordinance in performing under the scope and specifications of this RFQ are currently held by Bidder, and are valid and in full force and effect. Copies or legitimate proof of such licensure and/or certification shall be included in Bidder’s response. Bids lacking copies and/or proof of said licenses and/or certifications may be deemed non-responsive and may be rejected.   22.c Packet Pg. 769 Attachment: Attachment 3- PSA Exhibit "A," ITsimple Scope of Services (RFP) (7020 : Professional Services Agreement for Police Mobile 7 ITsimple is the proprietary developer of its software and related products and technology. We obtain full ownership and copyrights for our products. ITsimple is legally authorized to license and provide added value services i.e: training, maintenance, technical support and customer success in relation to its products and technology. From Section I, Item J: The City’s Business Ordinance requires that a Business doing business with the City obtain and maintain a valid City Business Registration Certificate during the terms of the Agreement. Bidder agrees to obtain such Certificate prior to undertaking any work under this Agreement. ITsimple, LC agrees C. Cost and Price Forms Bidder shall complete the Cost/Price Form in its entirety including: 1) all items listed and total price; 2) all additional costs associated with performance of specifications; and 3) Bidder’s identification information including a binding signature. Bidder shall state cash discounts offered. Unless discount payment terms are offered, payment terms shall be “Net 30 Days.” Payment due dates, including discount period, will be computed from date of City acceptance of the required services or of a correct and complete invoice, whichever is later, to the date City’s check is mailed. Any discounts taken will be taken on full amount of invoice, unless other charges are itemized and discount thereon is disallowed. Freight terms shall be F.O.B. Destination, Full Freight Allowed, unless otherwise specified on price form.   22.c Packet Pg. 770 Attachment: Attachment 3- PSA Exhibit "A," ITsimple Scope of Services (RFP) (7020 : Professional Services Agreement for Police Mobile 8   22.c Packet Pg. 771 Attachment: Attachment 3- PSA Exhibit "A," ITsimple Scope of Services (RFP) (7020 : Professional Services Agreement for Police Mobile 9   22.c Packet Pg. 772 Attachment: Attachment 3- PSA Exhibit "A," ITsimple Scope of Services (RFP) (7020 : Professional Services Agreement for Police Mobile Page 1 Consent Calendar City of San Bernardino Request for Council Action Date: January 20, 2021 To: Honorable Mayor and City Council Members From: Robert D. Field, City Manager By:Eric McBride, Acting Chief of Police Subject: San Manuel Memorandum of Agreement (Wards 3, 4, 5) Recommendation Adopt Resolution No. 2021-13 of the Mayor and City Council of the City of San Bernardino, California, authorizing the City Manager to accept the San Manuel Band of Mission Indians Memorandum of Agreement in the amount of $3,156,784 through 2024 and amend the FY 2020/21 Adopted Budget. Background On October 1, 2017, the City of San Bernardino entered into the San Manuel Community Credit Fund Restricted Grant Agreement, which supported the Police Department’s efforts to improve police visibility and public safety in the San Manuel Reservation community. The grant funded police vehicles, equipment, and personnel dedicated to patrol and investigation functions affecting the defined area. The terms of the grant expired on December 31, 2020. The San Manuel Band of Mission Indians proposes extending the services under a new Memorandum of Agreement effective January 1, 2021 to December 31, 2024. Discussion The new agreement will fund four full-time sworn officer positions to provide supplemental policing services in the City communities surrounding the San Manual Reservation and properties owned by the Tribe or its affiliates as described in Exhibit A. The officers are assigned exclusively to the defined servi ce areas to mitigate the impact of San Manual Casino activity and off -reservation needs in the surrounding communities and will remain in the assigned areas unless they are required to respond to a high priority call outside the service area. The agreement will also pay for additional traffic control services in the affected area and the equipment necessary to provide services. The new agreement has modified the defined area shown in the attachment under Exhibit A. The designated areas include areas of the Eastern, Southern, and Northern Districts. San Manuel funded positions will not replace or reduce patrol staffing. The annual breakdown for the funding is reflected in the table below: 23 Packet Pg. 773 7043 Page 2 Year of Service Officer Salary Total for 4 Officers 25% Sergeant Equipment Total 1st Year $161,000 $644,000 $48,724 $60,000 $752,724 2nd Year $165,000 $660,000 $50,500 $60,000 $770,500 3rd Year $172,000 $688,000 $52,000 $60,000 $800,000 4th Year $180,000 $720,000 $53,560 $60,000 $833,560 Total $3,156,784* *The total costs are based on top step projections. Grant funds will be billed at the actual cost of services provided. 2020-2025 Key Strategic Targets and Goals The request to amend the FY 2020/21 budget and accept the San Manuel Grant Agreement aligns with Key Target No. 1: Financial Stability: Implement, maintain, and update a fiscal accountability plan. Fiscal Impact The fiscal impact to the City is a budget amendment of $3,156,784 to revenue and expenditures in the FY 2020/21 Adopted Budget. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution No. 2021-13 authorizing the City Manager to accept the San Manuel Band of Mission Indians Memorandum of Agreement in the amount of $3,156,784 through 2024 and amend the FY 2020/21 Adopted Budget. Attachments Attachment 1 Resolution No. 2021-13 Attachment 2 Memorandum of Agreement Wards: 3, 4, 5 Synopsis of Previous Council Actions: August 7, 2019 Mayor and City Council adopted Resolution 2019 -259, authorizing the first amendment to the San Manuel Community Credit Fund Restricted Grant Agreement. October 1, 2017 Mayor and City Council adopted Resolution 2017 -214, authorizing the City Manager to accept the San Manuel Community Credit Fund Restricted Grant Agreement. 23 Packet Pg. 774 RESOLUTION NO. 2021-13 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AUTHORIZING THE CITY MANAGER TO ACCEPT THE SAN MANUEL BAND OF MISSION INDIANS MEMORANDUM OF AGREEMENT IN THE AMOUNT OF $3,156,784 THROUGH 2024 AND AMEND THE FY 2020/21 ADOPTED BUDGET WHEREAS, The current San Manuel Community Credit Fund Restricted Grant expired on December 31, 2020; and WHEREAS, The San Manuel Band of Mission Indians (“Tribe”) is proposing to provide continued funding to pay for four sworn officer positions assigned to a defined area, 25% of a supervisor’s salary, and purchase necessary equipment through 2024; and, WHEREAS, Public safety is a critical component to the Mayor and City Council’s objectives of creating economic development and providing a safe community. BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. The above recitals are true and correct and are incorporated herein by this reference. SECTION 2. The City Manager is hereby authorized to execute the required Agreement and supporting documentation between the City of San Bernardino and the San Manuel Band of Mission Indians for the San Manuel Memorandum of Agreement for the term of January 1, 2021 through December 31, 2024. SECTION 3. The Director of Finance is hereby authorized to amend the FY 2020/21 Adopted Budget, appropriating $3,156,784 in both revenue and expenditures. SECTION 4. That the City Council finds this Resolution is not subject to the California Environmental Quality Act (CEQA) in that the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty, as in this case, that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. SECTION 5. Severability. If any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications, and to this end the provisions of this Resolution are declared to be severable. SECTION 6. Effective Date. This Resolution shall become effective immediately. 23.a Packet Pg. 775 Attachment: Attachment 1 - Resolution No. 2021-13 (7043 : San Manuel Memorandum of Agreement (Wards 3, 4, 5)) Resolution No. 2021-13 APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this ___ day of __________ 2021. John Valdivia, Mayor City of San Bernardino Attest: Genoveva Rocha, CMC, City Clerk Approved as to form: Sonia Carvalho, City Attorney 23.a Packet Pg. 776 Attachment: Attachment 1 - Resolution No. 2021-13 (7043 : San Manuel Memorandum of Agreement (Wards 3, 4, 5)) Resolution No. 2021-13 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, City Clerk, hereby certify that the attached is a true copy of Resolution No. 2021-___, adopted at a regular meeting held on the ___ day of _______ 2021 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ REYNOSO _____ _____ _______ _______ CALVIN _____ _____ _______ _______ ALEXANDER _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2021. Genoveva Rocha, CMC, City Clerk 23.a Packet Pg. 777 Attachment: Attachment 1 - Resolution No. 2021-13 (7043 : San Manuel Memorandum of Agreement (Wards 3, 4, 5)) 23.b Packet Pg. 778 Attachment: Attachment 2 - PD-2020 San Manuel Grant Agreement-Memorandum of Agreement. (7043 : San Manuel Memorandum of 23.b Packet Pg. 779 Attachment: Attachment 2 - PD-2020 San Manuel Grant Agreement-Memorandum of Agreement. (7043 : San Manuel Memorandum of 23.b Packet Pg. 780 Attachment: Attachment 2 - PD-2020 San Manuel Grant Agreement-Memorandum of Agreement. (7043 : San Manuel Memorandum of 23.b Packet Pg. 781 Attachment: Attachment 2 - PD-2020 San Manuel Grant Agreement-Memorandum of Agreement. (7043 : San Manuel Memorandum of 23.b Packet Pg. 782 Attachment: Attachment 2 - PD-2020 San Manuel Grant Agreement-Memorandum of Agreement. (7043 : San Manuel Memorandum of 23.b Packet Pg. 783 Attachment: Attachment 2 - PD-2020 San Manuel Grant Agreement-Memorandum of Agreement. (7043 : San Manuel Memorandum of 23.b Packet Pg. 784 Attachment: Attachment 2 - PD-2020 San Manuel Grant Agreement-Memorandum of Agreement. (7043 : San Manuel Memorandum of 23.b Packet Pg. 785 Attachment: Attachment 2 - PD-2020 San Manuel Grant Agreement-Memorandum of Agreement. (7043 : San Manuel Memorandum of 23.b Packet Pg. 786 Attachment: Attachment 2 - PD-2020 San Manuel Grant Agreement-Memorandum of Agreement. (7043 : San Manuel Memorandum of 23.b Packet Pg. 787 Attachment: Attachment 2 - PD-2020 San Manuel Grant Agreement-Memorandum of Agreement. (7043 : San Manuel Memorandum of 23.b Packet Pg. 788 Attachment: Attachment 2 - PD-2020 San Manuel Grant Agreement-Memorandum of Agreement. (7043 : San Manuel Memorandum of 23.b Packet Pg. 789 Attachment: Attachment 2 - PD-2020 San Manuel Grant Agreement-Memorandum of Agreement. (7043 : San Manuel Memorandum of 23.b Packet Pg. 790 Attachment: Attachment 2 - PD-2020 San Manuel Grant Agreement-Memorandum of Agreement. (7043 : San Manuel Memorandum of 23.b Packet Pg. 791 Attachment: Attachment 2 - PD-2020 San Manuel Grant Agreement-Memorandum of Agreement. (7043 : San Manuel Memorandum of 23.b Packet Pg. 792 Attachment: Attachment 2 - PD-2020 San Manuel Grant Agreement-Memorandum of Agreement. (7043 : San Manuel Memorandum of 23.b Packet Pg. 793 Attachment: Attachment 2 - PD-2020 San Manuel Grant Agreement-Memorandum of Agreement. (7043 : San Manuel Memorandum of Page 1 Consent Calendar City of San Bernardino Request for Council Action Date: January 20, 2021 To: Honorable Mayor and City Council Members From: Robert D. Field, City Manager By:Eric McBride, Acting Chief of Police Subject: Accept the FY 2020/21 Tobacco Grant (All Wards) Recommendation Adopt Resolution No. 2021-14 of the Mayor and City Council of the City of San Bernardino, California, to authorize the City Manager to accept the FY 2020/21 Tobacco Grant; authorize the Director of Finance to amend the FY 2020/21 Adopted Budget appropriating $1,169,028 in both revenue and expenditures; and authorize the Police Department to increase the approved staffing. Background The purpose of the Tobacco Grant Program is to provide local public agenci es with the funding necessary to reduce illegal sales and marketing of cigarettes and tobacco products. In July 2020, Staff submitted a proposal to the Tobacco Grant Program. On December 31, 2020, the department was notified that it was awarded FY 2020/21 Tobacco Grant Program funding in the amount of $1,169,028. Discussion According to the California Department of Public Health, San Bernardino County’s smoking rate is nearly 25% greater than the state average. The City has 21 middle and high schools and dozens of charter schools surrounded by 212 tobacco retailers. Arroyo Valley and San Bernardino High Schools have the highest rates of students caught with tobacco products on campus. Each school has several hundred incidents and is surrounded by tobacco retailers, both stores and hookah bars. The department will use the grant funding to identify problematic tobacco retailers, ensure legal compliance, and educate the community of the consequence and dangers of underage tobacco use. The funding will pay for one sworn officer, one criminal investigation officer, and one community engagement specialist for three years. Grant funding will also cover some operational costs associated with tobacco enforcement operations, including equipment and overtime expenses. These additional resources will be used to augment the VICE unit and support the proposed tobacco enforcement activities. 24 Packet Pg. 794 7053 Page 2 2020-2025 Key Strategic Targets and Goals The request to authorize the receipt, obligation, and expenditure of the FY 2020/21 Tobacco Grant aligns with Key Target No. 1: Financial Stability - implement, maintain, and update a fiscal accountability plan. Fiscal Impact The financial impact to the City is $1,169,028 in both revenues and expenditures in the FY 2020/21 Adopted Budget in GL account number 123-210-8811. There is no fund match requirement under this grant. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution No. 2021-14 authorizing the City Manager to accept the FY 2020/21 Tobacco Grant; authorizing the Director of Finance to amend the FY 2020/21 Adopted Budget appropriating $1,169,028 in both revenue and expenditures; and authorizing the Police Department to increase the approved staffing. Attachments Attachment 1 Resolution No. 2021-14 Attachment 2 Award Notification Attachment 3 Budget Detail Attachment 4 Letter of Intent Ward: All Synopsis of Previous Council Actions: None 24 Packet Pg. 795 RESOLUTION NO. 2021-14 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AUTHORIZING THE CITY MANAGER TO ACCEPT THE FY2020-21 TOBACCO GRANT, AUTHORIZE THE DIRECTOR OF FINANCE TO AMEND THE FY2020/21 ADOPTED BUDGET APPROPRIATING $1,169,028 IN BOTH REVENUE AND EXPENDITURES, AND AUTHORIZE THE POLICE DEPARTMENT TO INCREASE THE APPROVED STAFFING WHEREAS, the City of San Bernardino has been awarded the FY2020/21 Tobacco Grant in the amount of $1,169,028; and, WHEREAS, the City will use the grant funding to hire police department staff and pay for operational costs to ensure legal compliance to tobacco laws and prevent underage tobacco use. BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. The above recitals are true and correct and are incorporated herein by this reference. SECTION 2. The City Manager is hereby authorized to execute the grant agreement between the City of San Bernardino and the State of California Department of Justice and accept the FY2020-21 Tobacco Grant Program funding in the amount of $1,169,028. SECTION 3. The Director of Finance is hereby authorized to amend the FY2020/21 Adopted Budget increasing revenue and expenditures by $1,169,028 effective January 1, 2021. SECTION 4. The Police Department is hereby authorized to increase staffing by one (1) Police Officer, one (1) Criminal Investigations Officer, and one (1) Community Engagement Specialist effective January 1, 2021. SECTION 5. That the City Council finds this Resolution is not subject to the California Environmental Quality Act (CEQA) in that the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty, as in this case, that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. SECTION 6. Severability. If any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications, and to this end the provisions of this Resolution are declared to be severable. 24.a Packet Pg. 796 Attachment: Attachment 1-Resolution No. 2021-14 (7053 : Accept the FY 2020/21 Tobacco Grant (All Wards)) Resolution No. 2021-14 SECTION 7. Effective Date. This Resolution shall become effective immediately. APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this 20th day of January 2021. John Valdivia, Mayor City of San Bernardino Attest: Genoveva Rocha, CMC, City Clerk Approved as to form: Sonia Carvalho, City Attorney 24.a Packet Pg. 797 Attachment: Attachment 1-Resolution No. 2021-14 (7053 : Accept the FY 2020/21 Tobacco Grant (All Wards)) Resolution No. 2021-14 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, City Clerk, hereby certify that the attached is a true copy of Resolution No. 2021-14, adopted at a regular meeting held on the 20th day of January 2021 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ REYNOSO _____ _____ _______ _______ CALVIN _____ _____ _______ _______ ALEXANDER _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this 21st day of January 2021. Genoveva Rocha, CMC, City Clerk 24.a Packet Pg. 798 Attachment: Attachment 1-Resolution No. 2021-14 (7053 : Accept the FY 2020/21 Tobacco Grant (All Wards)) XAVIER BECERRA State of California Attorney General DEPARTMENT OF JUSTICE DIVISION OF OPERATIONS TOBACCO GRANT PROGRAM P.O. BOX 160187 SACRAMENTO, CA 95816-0187 Telephone: (916) 210-6422 E-Mail Address: TobaccoGrants@doj.ca.gov December 31, 2020 Adam Affrunti, Captain San Bernardino Police Dept. 710 N D Street San Bernardino, CA 92408 Re: Tobacco Grant Award Notification FY 20/21 Dear Adam Affrunti: Congratulations! On behalf of the California Department of Justice, I am excited to inform you that your agency’s grant application for funds authorized under the California Healthcare, Research and Prevention Tobacco Tax Act of 2016 has been approved for Funding in the amount of $1,169,028¹. The California Department of Justice was excited to receive applications totaling over $82 million to support local law enforcement agencies in educating minors about the harms of tobacco products, enforcing state and local tobacco laws, and conducting retailer enforcement. Consequently, some awards were approved with modifications. In order to accept the award, your agency must, within 15 calendar days of the date of this letter, respond with a signed Letter of Intent (template attached) affirming either 1) your agency will seek a resolution to accept the award, if your agency has a governing body; or 2) no governing body exists and no resolution is required. The letter can be sent via email to TobaccoGrants@doj.ca.gov with subject line “FY 20-21_Letter of Intent_[Agency Name]” and/or hard copy to: CA Department of Justice Division of Operations Tobacco Grant Program P.O. Box 160187 Sacramento, CA 95816-0187 If the Letter of Intent is only being sent via hard copy, it must be postmarked within 15 days of the date of this letter. Upon receipt of the Letter of Intent, the Local Assistance Unit ¹Award amounts are subject to change due to appeals or declinations of awards. 24.b Packet Pg. 799 Attachment: Attachment 2-Award Notification (7053 : Accept the FY 2020/21 Tobacco Grant (All Wards)) December 31, 2020 Page 2 within the California Department of Justice will provide documents as part of your grant agreement (Memorandum of Understanding, Handbook, etc.). Also provided with the electronic version of this letter is the approved Budget Detail which will reflect any necessary modifications. If you wish to realign the approved funds, please reference the attached instruction sheet and return your revised Budget Detail with your letter of intent. If you have any questions about this process, please do not hesitate to contact me at (916) 210-7006 or at TobaccoGrants@doj.ca.gov. Sincerely, STACY HEINSEN Manager, Tobacco Grant Program For XAVIER BECERRA Attorney General 24.b Packet Pg. 800 Attachment: Attachment 2-Award Notification (7053 : Accept the FY 2020/21 Tobacco Grant (All Wards)) TOBACCO LAW ENFORCEMENT GRANT BUDGET DETAIL San Bernadino Police Department A. Personal Services Salaries Classification/Positions Computation FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 56,922$ 117,829$ 121,952$ 63,110$ 25,782$ 52,595$ 53,647$ 27,360$ 25,650$ 52,326$ 53,373$ 27,220$ -$ -$ -$ -$ SUBTOTAL 108,354$ 222,750$ 228,972$ 117,690$ Overtime Classification/Positions Computation FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 28,000$ 59,000$ 61,000$ 31,500$ SUBTOTAL 28,000$ 59,000$ 61,000$ 31,500$ Benefits Classification/Positions Computation FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 21,853$ 51,291$ 53,086$ 27,472$ 9,422$ 19,220$ 19,605$ 9,999$ 9,401$ 19,177$ 19,561$ 10,175$ SUBTOTAL 40,676$ 89,688$ 92,252$ 47,646$ TOTAL PERSONAL SERVICES 177,030$ 371,438$ 382,224$ 196,836$ B.Operating Expenses and Equipment Description Computation FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 SUBTOTAL -$ -$ -$ -$ Other Expenses Description Computation FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 250$ 500$ 500$ 250$ Costs Per Fiscal Year (July 1 - June 30) Police Officer Community Engagement Specialist Police Officer 1 officer X$113,844/yr Community Engagement Specialist 1 specialist X$51,564/yr Criminal Investigations Officer 1 CIO X$51,300/yr Project costs 60 + packs of cigarettes, vape, hookah Criminal Investigations Officer Police Officer 500 hours X $112/hr Equipment (Tangible items with a per-unit cost of $5,000 or more) Page 1 of 3 24.c Packet Pg. 801 Attachment: Attachment 3-Budget Detail (7053 : Accept the FY 2020/21 Tobacco Grant (All Wards)) TOBACCO LAW ENFORCEMENT GRANT BUDGET DETAIL San Bernadino Police Department SUBTOTAL 250$ 500$ 500$ 250$ Description and Destination Computation FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ SUBTOTAL -$ -$ -$ -$ TOTAL OPERATING EXPENSES AND EQUIPMENT 250$ 500$ 500$ 250$ *For approved tobacco related training only. Travel cannot exceed current state rates. C.Administrative Costs* Description Computation FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 8,000$ 12,000$ 12,000$ 8,000$ *Administrative costs may not exceed 5% of the total budget.TOTAL 8,000$ 12,000$ 12,000$ 8,000$ Travel Expenses/Registration Fees* Office space, computers, finance, supervision 3 work stations X $2,500, IT, Finance maintenance Page 2 of 3 24.c Packet Pg. 802 Attachment: Attachment 3-Budget Detail (7053 : Accept the FY 2020/21 Tobacco Grant (All Wards)) TOBACCO LAW ENFORCEMENT GRANT BUDGET DETAIL San Bernadino Police Department SUMMARY Budget Category FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 177,030$ 371,438$ 382,224$ 196,836$ 250$ 500$ 500$ 250$ 8,000$ 12,000$ 12,000$ 8,000$ 185,280$ 383,938$ 394,724$ 205,086$ Total Request 1,127,528$ 1,500$ 40,000$ 1,169,028$ TOTAL PROJECT COSTS B. Operating Expenses and Equipment C. Administrative Costs A. Personal Services Page 3 of 3 24.c Packet Pg. 803 Attachment: Attachment 3-Budget Detail (7053 : Accept the FY 2020/21 Tobacco Grant (All Wards)) 24.d Packet Pg. 804 Attachment: Attachment 4-Letter of Intent (7053 : Accept the FY 2020/21 Tobacco Grant (All Wards)) Page 1 Consent Calendar City of San Bernardino Request for Council Action Date: January 20, 2021 To: Honorable Mayor and City Council Members From: Robert D. Field, City Manager By:Kris Jensen, Director of Public Works Subject: Soccer Field Rehabilitation at Nunez Park (Ward 1) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution No. 2021-15: 1. Approving a total project budget for the Soccer Field Rehabilitation at N unez Park Project (“Project”) in the amount of $408,000, to include construction in the amount of $360,430, contingencies in the amount of $36,000, and engineering and inspection budgets in the amount of $11,570; and 2. Authorizing the Director of Finance to amend the FY 2020/21 Capital Improvement Plan (CIP) to include the Project and allocating $208,000 from Quimby Act Parkland Fund No. 269 to support the full Project costs; and 3. Approving the award of a Construction Contract with Act Global America, Inc. in the amount of $360,430; and 4. Authorizing the City Manager or designee to expend the contingency fund, if necessary, to complete the project. Background The Public Works Department is responsible for maintaining the Soccer Field Complex at Nunez Park located at 1717 West 5th Street. This field is programmed by the City’s Parks and Recreation Department and is used on a daily basis by adult and youth soccer organizations for league play, tournaments and general soccer practice. This is the only lighted soccer field that is programmed and managed by the City. The soccer field was transitioned to artificial turf in 2008. Due to turf age and the high volume of use, the artificial turf on this field is in extremely poor condition. Full replacement of the artificial turf throughout the field is needed to restore the field to a safe and level sports field condition. On September 16, 2020, the Mayor and City Council approved the allocation of $200,000 in Meadowbrook Bridge Insurance Claim funds to be used in the rehabilitation 25 Packet Pg. 805 7017 Page 2 of the soccer field turf at Nunez Park. Staff was further directed staff to bid the project to determine actual costs and return to the Mayor and City Council with a financial plan to complete the project. Staff prepared plans and specifications for the Soccer Field Rehabilitation project. The proposed scope of work includes removing and replacing the soccer field turf system at Nunez Park. Discussion Project 13422 for Soccer Field Rehabilitation at Nunez Park, was advertise d for public bidding on November 11, 2020, and November 18, 2020, in the San Bernardino County Sun Newspaper, F. W. Dodge, Construction Bid Board, High Desert Plan Room, San Diego Daily Transcript, Sub-Hub Online Plan Room, Reed Construction Data, Bid America Online, Construction Bid Source, Bid Ocean, the City’s websites, and the San Bernardino Area Chamber of Commerce. Eight sealed bids were received and opened on December 3, 2020 with bidder pricing received as shown below: Bidder City Base Bid Act Global Americas, Inc. Austin, Texas $360,430.00 D2L Construction, Inc. Pacific Palisades $363,433.00 KASA Construction, Inc. Chino $396,500.00 OHNO Construction Company Fontana $398,000.00 Asphalt, Fabric & Engineering, Inc. Signal Hill $421,341.00 Hellas Construction Inc. Austin, Texas $497,879.00 *AID Builders, Inc. Los Alamitos Non-Responsive *AID Builders, Inc. was deemed as non-responsive after staff review for failure to provide bid bond documentation. Staff has reviewed the bid package submittals and confirmed that Act Global America, Inc. of Austin, Texas, is the lowest responsible and responsive bidder, with a total bid amount of $360,430. If awarded by the Mayor and City Council, construction work is anticipated to begin in February 2021 and be completed by May 2021. 2020-2025 Key Strategic Targets and Goals This project is consistent with Key Target No. 1: Financial Stability by leveraging existing resources to provide needed improvements at Soccer Field Complex at Nunez Park and enhance services to the community. Fiscal Impact No General Fund impacts are associated with this request. Funding in the amount of $200,000 was previously approved by the Mayor and City Council as a priority use of the Meadowbrook Bridge Insurance Claim Funds. An additional $208,000 is available through Quimby Act Parkland Fund No. 269 to support the full Project costs. The available fund balance in Parkland Fund No. 269 as of July 1, 2020 is $2,026,865 . 25 Packet Pg. 806 7017 Page 3 The estimated project costs as well as available funding in FY 2020/21 Capital Improvement Projects Budget are summarized in the table below; Estimated Project Cost Construction Bid $ 360,430 Construction Contingency $ 36,000 Engineering and Inspections $ 11,570 Total Estimated Project Cost $ 408,000 Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution No. 2021-15: 1. Approving a total project budget for the Soccer Field Rehabilitation at Nunez Park Project (“Project”) in the amount of $408,000, to include construction in the amount of $360,430, contingencies in the amount of $36,000, and engineering and inspection budgets in the amount of $11,570; and 2. Authorizing the Director of Finance to amend the FY 2020/21 Cap ital Improvement Plan (CIP) to include the Project and allocating $208,000 from Quimby Act Parkland Fund No. 269 to support the full Project costs; and 3. Approving the award of a Construction Contract with Act Global America, Inc. in the amount of $360,430; and 4. Authorizing the City Manager or designee to expend the contingency fund, if necessary, to complete the project. Attachments Attachment 1 Resolution No. 2021-15 Attachment 2 Resolution No. 2021-15; Exhibit A - Contract Agreement Attachment 3 Bid Tabulation Attachment 4 Act Global America, Inc. Bid Attachment 5 Location Map Attachment 6 CIP Information Sheet Ward: 1 Synopsis of Previous Council Actions: September 16, 2020 Mayor and City Council allocated $200,000 for the rehabilitation of the Nunez Park Soccer Filed and directed staff to bid the project and return with financial plan to complete the project. 25 Packet Pg. 807 RESOLUTION NO. 2021-15 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA APPROVING A TOTAL PROJECT BUDGET FOR THE SOCCER FIELD REHABILITATION AT NUNEZ PARK PROJECT (“PROJECT”) IN THE AMOUNT OF $408,000, TO INCLUDE CONSTRUCTION IN THE AMOUNT OF $360,430, CONTINGENCIES IN THE AMOUNT OF $36,000, AND ENGINEERING AND INSPECTION BUDGETS IN THE AMOUNT OF $11,570; AND AUTHORIZING THE DIRECTOR OF FINANCE TO AMEND THE FY 2020/21 CAPITAL IMPROVEMENT PLAN (CIP) TO INCLUDE THE PROJECT AND ALLOCATING $208,000 FROM QUIMBY ACT PARKLAND FUND NO. 269 TO SUPPORT THE FULL PROJECT COSTS; AND APPROVING THE AWARD OF A CONSTRUCTION CONTRACT WITH ACT GLOBAL AMERICA, INC. IN THE AMOUNT OF $360,430; AND AUTHORIZING THE CITY MANAGER OR DESIGNEE TO EXPEND THE CONTINGENCY FUND, IF NECESSARY, TO COMPLETE THE PROJECT. WHEREAS, The City owns, maintains and programs recreational activities at the Soccer Field Complex at Nunez Park, located at 1717 West 5th Street; and WHEREAS, the soccer field’s artificial turf, originally installed in 2008, is in extremely poor condition and requires full turf replacement to restore and improve the field condition for continued use by the community; and WHEREAS, in December 2020, the City administered a competitive bid solicitation for the Soccer Field Rehabilitation at Nunez Park Project (“Project”), resulting in the receipt of eight construction cost submittals; and WHEREAS, staff has reviewed the construction bid submittals and determined Act Global Americas, Inc. of Austin, Texas, to be the lowest responsive and responsible bidder with a total construction bid of $360,430; and WHEREAS, the City now wishes to enter into a Construction Agreement with Act Global Americas, Inc. to perform the Project construction. BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. The above recitals are true and correct and are incorporated herein by this reference. 25.a Packet Pg. 808 Attachment: Attachment 1 - Resolution No. 2021-15 [Revision 1] (7017 : Soccer Field Rehabilitation at Nunez Park (Ward 1)) Resolution No. 2021-15 SECTION 2. The City Manager is hereby authorized to execute a Construction Agreement, and any supporting documents, for Soccer Field Rehabilitation at Nunez Park Project (“Project”) with Act Global Americas, Inc. of Austin, Texas in the amount of $360,430 on behalf of the City, attached hereto and incorporated herein as Exhibit “A”. SECTION 3. The Director of Finance is hereby authorized to amend the FY 2020/21 CIP to include said Project for a total project amount of $408,000, and appropriate $208,000 from Quimby Act Parkland fund (269) and $200,000 from the Meadowbrook Bridge Insurance Claim fund in support of the Project. SECTION 4. That the City Council finds this Resolution is not subject to the California Environmental Quality Act (CEQA) in that the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty, as in this case, that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. SECTION 5. Severability. If any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications, and to this end the provisions of this Resolution are declared to be severable. SECTION 6. Effective Date. This Resolution shall become effective immediately. APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this 20th day of January, 2021. John Valdivia, Mayor City of San Bernardino Attest: __________________________________ Genoveva Rocha, CMC, Acting City Clerk Approved as to form: _________________________________ Sonia Carvalho, City Attorney 25.a Packet Pg. 809 Attachment: Attachment 1 - Resolution No. 2021-15 [Revision 1] (7017 : Soccer Field Rehabilitation at Nunez Park (Ward 1)) Resolution No. 2021-15 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, City Clerk, hereby certify that the attached is a true copy of Resolution No. 2021-15, adopted at a regular meeting held on the 20th day of January 2021 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ REYNOSO _____ _____ _______ _______ CALVIN _____ _____ _______ _______ ALEXANDER _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this 21st day of January 2021. Genoveva Rocha, CMC, City Clerk 25.a Packet Pg. 810 Attachment: Attachment 1 - Resolution No. 2021-15 [Revision 1] (7017 : Soccer Field Rehabilitation at Nunez Park (Ward 1)) 25.b Packet Pg. 811 Attachment: Attachment 2 - Resolution No. 2021-15; Exhibit A - Contract Agreement (7017 : Soccer Field Rehabilitation at Nunez Park (Ward 1)) 25.b Packet Pg. 812 Attachment: Attachment 2 - Resolution No. 2021-15; Exhibit A - Contract Agreement (7017 : Soccer Field Rehabilitation at Nunez Park (Ward 1)) BID TABULATION FOR SOCCER FIELD REHABILITATION AT NUNEZ PARK SPECIAL PROVISIONS NO. 13422 BASE BID ITEMS (ITEM 1 THRU 4) PROJECT NO. 13422 ITEM NO.BID ITEM DESCRIPTION ESTIMATED QTY UNIT UNIT PRICE TOTAL UNIT PRICE TOTAL UNIT PRICE TOTAL UNIT PRICE TOTAL UNIT PRICE TOTAL UNIT PRICE TOTAL 1 Mobilization 1 LS 18,021.00$ 18,021.00$ 45,000.00$ 45,000.00$ $ 50,000.00 50,000.00$ $ 38,000.00 38,000.00$ 7,900.00$ 7,900.00$ $ 24,605.00 24,605.00$ 2 Remove & Dispose Existing Turf System 1 LS 32,000.00$ 32,000.00$ 50,433.00$ 50,433.00$ 35,000.00$ 35,000.00$ 33,500.00$ 33,500.00$ 28,368.00$ 28,368.00$ 42,604.00$ 42,604.00$ 3 Preparation, Furnish, and Install New Field Turf, Includes Field Markings Per Project Plans and Specifications 1 LS 309,909.00$ 309,909.00$ 265,000.00$ 265,000.00$ 310,000.00$ 310,000.00$ 325,000.00$ 325,000.00$ 382,573.00$ 382,573.00$ 429,485.00$ 429,485.00$ 4 Construction Project Sign 1 EA 500.00$ 500.00$ 3,000.00$ 3,000.00$ 1,500.00$ 1,500.00$ 1,500.00$ 1,500.00$ 2,500.00$ 2,500.00$ 1,185.00$ 1,185.00$ TOTAL BASE BID ITEMS (ITEM 1 THRU 4) NOTE: AID BUILDERS, INC. BID IS DEEMED NON-RESPONSIVE AFTER STAFF REVIEW FOR FAILURE TO PROVIDE BID BOND DOCUMENTATION. 5TH LOW ASPHALT, FABRIC, AND ENGINEERING, INC. TOTALS 6TH LOW HELLAS CONSTRUCTION, INC. BID OPENING: 2:00 P.M., DECEMBER 3, 2020 360,430.00$ 363,433.00$ 396,500.00$ 398,000.00$ 497,879.00$ APPARENT LOWEST BIDDER ACT GLOBAL AMERICAS INC. 2ND LOW D2L CONSTRUCTION, INC. 3RD LOW KASA CONSTRUCTION, INC. 4TH LOW OHNO CONSTRUCTION COMPANY 421,341.00$ Attachment III - Bid Tabulation 25.c Packet Pg. 813 Attachment: Attachment 3 - Bid Tabulation (7017 : Soccer Field Rehabilitation at Nunez Park (Ward 1)) 25.d Packet Pg. 814 Attachment: Attachment 4 - Act Global America, Inc. Bid (7017 : Soccer Field Rehabilitation at Nunez Park (Ward 1)) 25.d Packet Pg. 815 Attachment: Attachment 4 - Act Global America, Inc. Bid (7017 : Soccer Field Rehabilitation at Nunez Park (Ward 1)) 25.d Packet Pg. 816 Attachment: Attachment 4 - Act Global America, Inc. 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Bid (7017 : Soccer Field Rehabilitation at Nunez Park (Ward 1)) Nunez Park Ward 1 1717 West 5th Street San Bernardino, CA 92411 Attachment V - Location Map 25.e Packet Pg. 890 Attachment: Attachment 5 - Location Map (7017 : Soccer Field Rehabilitation at Nunez Park (Ward 1)) CITY OF SAN BERNARDINO PROJECT INFORMATION SHEET Project Name PR21- 007 Nunez Park Soccer Field Rehabilitation Department Public Works Ward 1 CIP Type Parks Project Location 1717 West 5th Street Project Category New Total Project Cost $408,000 Prior Year Funding $0 Remaining Needed $408,000 Project No. XXXX PROJECT DESCRIPTION Soccer Field Complex at Nunez Park located at 1717 West 5th Street is in poor condition and need to be rehabilitated to preserve the City-owned asset.. PROJECT FUNDING AND EXPENDITURE DETAIL Funding Source Prior Year Funding FY 20/21 Projected FY 21/22 Projected FY22/23 Projected FY 23/24 Projected FY 24/25 Projected Estimated Project Total Meadowbro ok Bridge Insurance Claim Quimby Parkland Fund (269) $0 $0 $200,000 $208,000 $0 $0 $0 $0 $0 $0 $0 $0 $200,000 $208,000 Totals $0 $408,000 $0 $0 $0 $0 $408,000 PROJECT STATUS UPDATE Construction Bids have been received construction is scheduled for February 2021. Consistency: This project is consistent with Key Target No. 1: Financial Stability by leveraging existing resources to provide needed improvements at Soccer Field Complex at Nunez Park and enhance services to the community. Forecasted Project Completion Date: April 2021 On-going Operating & Maintenance Impact: Maintenance reduced Project Manager: Saba Engineer 25.f Packet Pg. 891 Attachment: Attachment 6 - CIP Information Sheet (7017 : Soccer Field Rehabilitation at Nunez Park (Ward 1)) Page 1 Consent Calendar City of San Bernardino Request for Council Action Date: January 20, 2021 To: Honorable Mayor and City Council Members From: Robert D. Field, City Manager By:Kris Jensen, Director of Public Works Subject: Declaring Intent to Annex Territory: CFD No. 2019-1 (Maintenance Services): Annex No. 8 (Ward 6) Recommendation Adopt Resolution No. 2021-16 of the Mayor and City Council of the City of San Bernardino, California, declaring its intention to annex territory into Commu nity Facilities District No. 2019-1 (Maintenance Services) of the City of San Bernardino, adopting a map of the area to be proposed (Annexation No. 8) and authorizing the levy of a special taxes therein. Background On June 5, 2019, the Mayor and City Council approved Resolution No. 2019-81 establishing Community Facilities District No. 2019-1 (Maintenance Services) of the City of San Bernardino (the "CFD No. 2019-1" or "District") for the purpose of levying special taxes on parcels of taxable property to provide certain services which are necessary to meet increased demands placed upon the City. Discussion On July 17, 2019, the Mayor and City Council adopted Resolution No. 2019 -178, establishing CFD No. 2019-1 pursuant to the provisions of the Mello-Roos Community Facilities Act of 1982 (“Act”). CFD No. 2019 -1 allows for the levy of special taxes on parcels of taxable property for the purpose of providing certain services which are necessary to meet increased demands placed by development upon the City. Development projects are subject to conditions of approval that require projects to form/annex a maintenance district. These districts apply an annual fee or special tax upon properties within the District which provide the revenue to offset the cost of maintenance of the public improvements necessary to serve the development. The Developer has agreed to initiate and conduct the CFD annexation proceedings pursuant to the Act. To that end, the Developer has submitted a "Consent and Waiver" form, which is on file in the City Clerk's office that authorizes the City to (1) hold the election and declare election results; (2) shorten election time requirements; (3) waive analysis and arguments; (4) waive all notice requirements relating to the conduct of the elec tion immediately following the public hearing. 26 Packet Pg. 892 7018 Page 2 The public facilities and services proposed to be financed within the territory to be annexed to the District are the following: 1. Public lighting and appurtenant facilities, including street lights within public Rights-of-way and traffic signals; and 2. Maintenance of streets, including pavement management, and provide street sweeping; and 3. Maintenance and operation of water quality improvements including storm drainage and flood protection facilities; and 4. City and County costs associated with the setting, levying and collection of the special tax, and in the administration of the District including the contract administration and for the collection of reserve funds. The proposed development includes approximately 14.44 gross acres of a vacant industrial property to include a warehouse building containing approximately 278,047 square feet. The property is located west of I-215, north of w 24th Street and west of Cajon Blvd. At build out this development will create 13.47 net taxable acres as a new Tax Zone No. 9 within CFD No. 2019 -1, as shown in the boundary map and included in the Resolution of Intention as Exhibit “D”. In order to annex into CFD No. 2019 -1, a Resolution of Intention to annex property must be approved to identify the facilities to be maintained and establish the maximum special tax for this Tax Zone. The Resolution of Intention shall also set the date and time for the public hearing. The rate and method of apportionment of the special tax for this Tax Zone, (Tax Zone No. 9), is included as Exhibit “C” to the Resolution of Intention. The maximum annual special tax for this development has been calculated to be $1,047 per acre for FY 2021/22. This tax rate includes a Maximum Special Tax A of $815 per acre per year for maintenance services of public facilities and a Maximum Annual Special Tax B (Contingent) of $232 per acre per year. Special Tax B (Contingent) is for the maintenance and operation of the improvements described in Exhibit “B” attached hereto. If the Property Owners Association (POA) were to default of its obligation to maintain such improvements, the City would be able to collect funds to pay for those services. Annual Special Tax B (Contingent) rate is proposed to es calate each year at the greater of Consumer Price Index (CPI) or 2%. Attachment 3 attached to the staff report is a maintenance exhibit to illustrate which services are being maintained by the CFD and by the POA. In order to annex property to CFD No. 2019-1 pursuant to the provisions of California Government Code Section 53311 et seq., the City must adopt a series of three statutorily required Resolutions and an Ordinance which are summarized below. Resolution declaring City intent to annex territory to Community Facilities District No. 2019-1 including the boundary of the area to be annexed and the rate and method of apportionment of special taxes within the annexation area (the special 26 Packet Pg. 893 7018 Page 3 tax applies only to properties within the annexation area). Resolution calling an election to submit to the qualified electors the question of levying a special tax within the area proposed to be annexed to the District. Resolution declaring the results of the election and directing the recording of the notice of special tax lien. Amend the Ordinance and order the levy and collection of special taxes in the District. With the adoption of the Resolution of Intention, the Public Hearing would be scheduled for March 3, 2021. 2020-2025 Key Strategic Targets and Goals This project is consistent with Key Target No. 1: Financial Stability - Secure a long term revenue source. Funding from district assessments will create sustainable financial support for ongoing maintenance of landscape and infrastructure in public right of way associated with the district location. Fiscal Impact The individual property owners in the CFD will be responsible for annual payments of special taxes. Upon full completion of the development, it is estimated that there will be an annual collection of special tax revenues of approximately $5,307 to be used to pay for maintenance costs. On March 1 of each year, every taxable unit for which a building permit has been issued within the boundaries of the CFD will be subject to the special tax fo r the ensuing Fiscal Year. If the anticipated costs of maintaining the facilities in any given Fiscal Year, prior to buildout of the project, exceeds the special tax revenue available from parcels for which building permits have been issued, then the speci al tax may also be applied to property within recorded final subdivision maps, as well as other undeveloped property within the boundaries of the CFD. All costs associated with annexation into the CFD have been borne by the Developer. By annexing into the CFD, the costs of maintaining improvements located within the development will be financed through special taxes levied on the parcels within CFD No. 2019-1 and not through the City’s General Fund. Conclusion It is recommended that the Mayor and City Cou ncil of the City of San Bernardino, adopt Resolution No. 2021-16 declaring its intention to annex territory into Community Facilities District No. 2019-1 (Maintenance Services) of the City of San Bernardino, adopting a map of the area to be proposed (Annex ation No. 8) and authorizing the levy of special taxes therein. Attachments 26 Packet Pg. 894 7018 Page 4 Attachment 1 Resolution No. 2021-16 Attachment 2 Resolution No. 2021-16; Exhibit A - Description of Territory Attachment 3 Resolution No.2021-16; Exhibit B - Description of Authorized Services Attachment 4 Resolution No. 2021-16; Exhibit C - Rate and Method of Apportionment Attachment 5 Resolution No. 2021-16; Exhibit D - Annexation and Potential Annexation Boundary Maps Attachment 6 Resolution No. 2021-16; Exhibit E - Signed Petition, Waiver and Consent Attachment 7 Resolution No. 2021-16; Exhibit F - Notice of Public Hearing Attachment 8 Resolution No. 2021-16; Exhibit G - Special Election Ballot Attachment 9 Project/Location Map Attachment 10 CFD Maintenance Area Exhibit Ward: 6 Synopsis of Previous Council Actions: June 5, 2019 Mayor and City Council adopted Resolution No. 2019 -81, a Resolution of Intention to form Community Facilities District No. 2019-1 (Maintenance Services) of the City of San Bernardino (the “Resolution of Intention”), pursuant to the provisions of the “Mello - Roos Community Facilities Act of 1982”. July 17, 2019 Resolution No. 2019-178 was adopted establishing Community Facilities District No. 2019-1; Resolution No. 2019-179 was adopted declaring election results for Community Facilities District No. 2019-1; and first reading of Ordinance No. MC-1522 levying special taxes to be collected during FY 2019 -20 to pay annual costs of maintenance, services and expenses with respect to Community Facilities District No. 2019-1. August 7, 2019 Final reading of Ordinance No. MC-1522 levying special taxes to be collected during FY 2019-20 to pay annual costs of maintenance, services and expenses with respect to Community Facilities District No. 2019-1. 26 Packet Pg. 895 RESOLUTION NO. 2021-16 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, DECLARING ITS INTENTION TO ANNEX TERRITORY INTO COMMUNITY FACILITIES DISTRICT NO. 2019-1 (MAINTENANCE SERVICES) OF THE CITY OF SAN BERNARDINO, ADOPTING A MAP OF THE AREA TO BE PROPOSED (ANNEXATION NO. 8) AND AUTHORIZING THE LEVY OF A SPECIAL TAXES THEREIN WHEREAS, pursuant to the Mello-Roos Community Facilities Act of 1982 (the “Act”), on June 5, 2019, the City Council (the “City Council”) of the City of San Bernardino (th e “City”) approved Resolution No. 2019-081 establishing Community Facilities District No. 2019- 1 (Maintenance Services) of the City of San Bernardino, County of San Bernardino, State of California, defined the "CFD No. 2019-1", for the purpose of levying special taxes on parcels of taxable property therein for the purpose of providing certain services which are necessary to meet increased demands placed upon the City; and WHEREAS, the City Council has received a written instrument from the landowner in the CFD No. 2019-1 to initiate and conduct proceedings pursuant to the Act, to annex territory to CFD No. 2019-1 and consenting to the shortening of election time requirements, waiving analysis and arguments, and waiving all notice requirements relating to the conduct of the election; and WHEREAS, the City Council has been advised that certain property owners have requested that the area shown in Exhibit D be annexed territory to the boundaries of CFD No. 2019-1, that a rate and method of apportionment of the special tax to be levied therein be established. BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. Intent to Annex. The City Council hereby declares that it proposes and intends to conduct proceedings pursuant to Article 3.5 for the annexation to the Community Facilities District of the territory described in Exhibit A attached hereto. The City Council determines that the public convenience and necessity require that such territory be annexed to the Community Facilities District. SECTION 2. Name of the Community Facilities District. The name of the existing community facilities district is known as “Community Facilities District No. 2019-1 (Maintenance Services)”. SECTION 3. Description of Territory Proposed to be Annexed, Annexation Map. The territory proposed to be annexed are included within the boundaries within which property may annex to CFD No. 2019-1 and are more particularly described and shown on that certain map entitled “Boundaries – Potential Annexation Area Community Facilities District No. 2019-1 26.a Packet Pg. 896 Attachment: Attachment 1 - Resolution No. 2021-16 [Revision 2] (7018 : Declaring Intent to Annex Territory: CFD No. 2019-1 (Maintenance Resolution No. 2021-16 (Maintenance Services) of the City of San Bernardino, County of San Bernardino, State of California,” as recorded on June 6, 2019 in Book 88 of Maps of Assessment and Community Facilities District, Page 33, and as Instrument No. 2019-0185395 in the official records of the County of San Bernardino. The territory proposed to be annexed to the CFD No. 2019 -1 is described in Exhibit A attached hereto and by this reference made a part hereof. Such territory is also shown and described on the map thereof entitled "Annexation Map No. 8, Community Facilities District No. 2019-1 (Maintenance Services), City of San Bernardino, County of San Bernardino, State of California," which is on file with the City Clerk (the "Annexation Map") and attached hereto as Exhibit D. SECTION 4. Description of Authorized Services. The services proposed to be financed by CFD No. 2019-1 (the “Services”) are described in Exhibit B attached hereto. The cost of providing the Services includes “incidental expenses,” which include costs associated of CFD No. 2019-1, determination of the amount of special taxes, collection or payment of special taxes, or costs otherwise incurred in order to carry out the authorized purposes of CFD No. 2019-1. The Services authorized to be financed by CFD No. 2019-1 are in addition to those currently provided in the territory of CFD No. 2019 -1 and do not supplant services already available within that territory. SECTION 5. Levy of Special Taxes. Except where funds are otherwise available, a special tax sufficient to pay the costs of the Services (including incidental expenses), secured by recordation of a continuing lien against all nonexempt real property in CFD No. 2019-1, will be levied annually within CFD No. 2019-1. The Rate and Method of Apportionment, and manner of collection of the special tax are specified in Exhibit C. SECTION 6. Adoption of Annexation Map. Pursuant to Section 3110.5 of the Streets and Highways Code, the City Council adopts the Annexation Map as the map of the area proposed to be annexed to the CFD No. 2019-1. Pursuant to Section 3111 of said Code, the City Clerk shall file the original of the Annexation map in his office and shall file a copy of the Annexation Map with the County Recorder of the County of San Bernardino no later than 15 days prior to the date of the hearing specified in Section 7 hereof. SECTION 7. Public Hearing. The City Council hereby fixes 7:00 p.m., or as soon thereafter as practicable, on Wednesday, March 3, 2021, at the Bing Wong Auditorium of the Norman F. Feldheym Public Library at 555 W. 6th Street, San Bernardino, California, 92418, as the time and place when and where the City Council will conduct a public hearing on the proposed annexation of the said territory to the CFD No. 2019-1. SECTION 8. Notice of Public Hearing. The City Clerk is hereby directed to publish, or cause to be published, a notice of said public hearing, in substantially the form attached hereto as Exhibit F, one time in a newspaper of general circulation published in the area of CFD No. 2019- 1. The publication of said notice shall be completed at least seven days prior to the date herein fixed for said hearing. Said notice shall contain the information prescribed by Section 53322 of the Act. SECTION 9. Mailing Ballots. In anticipation of its action on Wednesday March 3, 2021 to call the election on the annexation for the same date, pursuant to waiver of election time 26.a Packet Pg. 897 Attachment: Attachment 1 - Resolution No. 2021-16 [Revision 2] (7018 : Declaring Intent to Annex Territory: CFD No. 2019-1 (Maintenance Resolution No. 2021-16 limits from the landowners, the City Council hereby authorizes the City Clerk to mail to each landowner in the territory proposed to be annexed to the CFD No. 2019-1 a ballot in substantially the form set forth in Exhibit G hereto. A copy of the waiver and consent form signed by the property owner is attached hereto as Exhibit E and incorporated herein by this reference. SECTION 10. That the City Council finds this Resolution is not subject to the California Environmental Quality Act (CEQA) in that the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty, as in this case, that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. SECTION 11. Severability. If any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications, and to this end the provisions of this Resolution are declared to be severable. SECTION 12. Effective Date. This Resolution shall become effective immediately. APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the Acting City Clerk this 20th day of January 2021. John Valdivia, Mayor City of San Bernardino Attest: Genoveva Rocha, CMC, City Clerk Approved as to form: Sonia Carvalho, City Attorney 26.a Packet Pg. 898 Attachment: Attachment 1 - Resolution No. 2021-16 [Revision 2] (7018 : Declaring Intent to Annex Territory: CFD No. 2019-1 (Maintenance Resolution No. 2021-16 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, City Clerk, hereby certify that the attached is a true copy of Resolution No. 2021-16 adopted at a regular meeting held on the 20th day of January 2021 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ REYNOSO _____ _____ _______ _______ CALVIN _____ _____ _______ _______ ALEXANDER _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this 21st day of January 2021. Genoveva Rocha, CMC, City Clerk 26.a Packet Pg. 899 Attachment: Attachment 1 - Resolution No. 2021-16 [Revision 2] (7018 : Declaring Intent to Annex Territory: CFD No. 2019-1 (Maintenance EXHIBIT A   DESCRIPTION OF PROPOSED TERRITORY TO BE ANNEXED The City of San Bernardino Community Facilities District No. 2019-1 (Maintenance Services) (the “CFD No. 2019-1”) Annexation No. 8 is currently comprised of one parcel, located within the City boundaries. The property is identified by the following San Bernardino County Assessor's Parcel Numbers (APN). APN Owner Name 0148-122-04 TR 2600 Cajon Industrial LLC     26.b Packet Pg. 900 Attachment: Attachment 2 - Resolution No. 2021-16; Exhibit A - Description of Territory (7018 : Declaring Intent to Annex Territory: CFD No. EXHIBIT B DESCRIPTION OF AUTHORIZED SERVICES The services which may be funded with proceeds of the special tax of CFD No. 2019-1, as provided by Section 53313 of the Act, will include all costs attributable to maintaining, servicing, cleaning, repairing and/or replacing landscaped areas (may include reserves for replacement) in public street right-of-ways, public landscaping, public open spaces and other similar landscaped areas officially dedicated for public use. These services including the following: (a) maintenance and lighting of parks, parkways, streets, roads and open space, which maintenance and lighting services may include, without limitation, furnishing of electrical power to street lights and traffic signals; repair and replacement of damaged or inoperative light bulbs, fixtures and standards; maintenance (including irrigation and replacement) of landscaping vegetation situated on or adjacent to parks, parkways, streets, roads and open space; maintenance and repair of irrigation facilities; maintenance of public signage; graffiti removal from and maintenance and repair of public structures situated on parks, parkways, streets, roads and open space; maintenance and repair of playground or recreation program equipment or facilities situated on any park; and (b) maintenance and operation of water quality improvements which include storm drainage and flood protection facilities, including, without limitation, drainage inlets, catch basin inserts, infiltration basins, flood control channels, fossil fuel filters, and similar facilities. Maintenance services may include but is not limited to the repair, removal or replacement of all or part of any of the water quality improvements, fossil fuel filters within the public right-of-way including the removal of petroleum hydrocarbons and other pollutants from water runoff, or appurtenant facilities, clearing of inlets and outlets; erosion repairs; and cleanup to improvements, and other items necessary for the maintenance, servicing; or both of the water quality basin improvements within flood control channel improvements; and (c) public street sweeping, on the segments of the arterials within the boundaries of CFD No. 2019-1; as well as local roads within residential subdivisions located within CFD No. 2019-1; and any portions adjacent to the properties within CFD No. 2019-1. In addition to payment of the cost and expense of the forgoing services, proceeds of the special tax may be expended to pay “Administrative Expenses,” as said term is defined in Exhibit B to this resolution of intention. The above services shall be limited to those provided within the boundaries of CFD No. 2019-1 or for the benefit of the properties within the boundaries of CFD No. 2019-1, as the boundary is expanded from time to time by anticipated annexations, and said services may be financed by proceeds of the special tax of CFD No. 2019-1 only to the extent that they are in addition to those provided in the territory of CFD No. 2019-1 before CFD No. 2019-1 was created. 26.c Packet Pg. 901 Attachment: Attachment 3 - Resolution No. 2021-16: Exhibit B - Description of Services (7018 : Declaring Intent to Annex Territory: CFD No. EXHIBIT C City of San Bernardino 1  Community Facilities District No. 2019‐1 (Maintenance Services)   RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX FOR   COMMUNITY FACILITIES DISTRICT NO. 2019‐1 (MAINTENANCE SERVICES)  OF THE CITY OF SAN BERNARDINO    A Special Tax (the “Special Tax”) shall be levied on and collected from each Assessor’s Parcel (defined  below) in Community Facilities District No. 2019‐1 (Maintenance Services) (the “CFD No. 2019‐1” or  “CFD”; defined below), in each Fiscal Year, (defined below), commencing in the Fiscal Year beginning July  1, 2019, in an amount determined by the City Council of the City of San Bernardino, acting in its capacity  as the legislative body of CFD No. 2019‐1, by applying the rate and method of apportionment set forth  below.  All of the real property in CFD No. 2019‐1, unless exempted by law or by the provisions herein,  shall be taxed to the extent and in the manner provided herein.    A. DEFINITIONS    “Acre” or “Acreage” means the land area of an Assessor’s Parcel as shown on any Assessor’s Parcel  Map, or if the land area is not shown on the Assessor’s Parcel Map, the land area as shown on the  applicable Final Map, or if the area is not shown on the applicable Final Map, the land area shall be  calculated by the Administrator.    “Administrative Expenses” means the actual or reasonably estimated costs directly related to the  formation, annexation, and administration of CFD No. 2019‐1 including, but not limited to: the costs  of computing the Special Taxes and preparing the annual Special Tax collection schedules (whether  by the City or designee thereof or both); the costs to the City, CFD No. 2019‐1, or any designee thereof  associated with fulfilling the CFD No. 2019‐1 disclosure requirements; the costs associated with  responding to public inquiries regarding the Special Taxes; the costs of the City, CFD No. 2019‐1 or  any designee thereof related to an appeal of the Special Tax; and the City's annual administration fees  including payment of a proportional share of salaries and benefits of any City employees and City  overhead whose duties are related to the administration and third party expenses.  Administrative  Expenses shall also include amounts estimated or advanced by the City or CFD No. 2019‐1 for any  other administrative purposes of CFD No. 2019‐1, including attorney's fees and other costs related to  commencing and pursuing to completion any foreclosure of delinquent Special Taxes.    “Administrator” means the City Manager of the City of San Bernardino, or his or her designee.    “Approved Property” means all Assessor’s Parcels of Taxable Property that are included in a Final  Map that was recorded prior to the March 1 preceding the Fiscal Year in which the Special Tax is being  levied, and that have not been issued a building permit on or prior to the March 1 preceding the Fiscal  year in which the special tax is being levied.    “Assessor’s Parcel” means a lot or parcel of land that is identifiable by an Assessor’s Parcel Number  by the County Assessor of the County of San Bernardino.    “Assessor’s Parcel Map” means an official map of the Assessor of the County designating parcels by  Assessor’s Parcel Number.    “Assessor’s Parcel Number” means that identification number assigned to a parcel by the County  Assessor of the County.    26.d Packet Pg. 902 Attachment: Attachment 4 - Resolution No. 2021-16: Exhibit C - Rate and Method of Apportionment of Special Taxes (7018 : Declaring Intent to City of San Bernardino 2  Community Facilities District No. 2019‐1 (Maintenance Services)   “Building Square Footage” or “BSF” means the floor area square footage reflected on the original  construction building permit issued for construction of a building of Non‐Residential Property and any  Building Square Footage subsequently added to a building of such Taxable Property after issuance of  a building permit for expansion or renovation of such building.    “Calendar Year” means the period commencing January 1 of any year and ending the following  December 31.     “CFD” or “CFD No. 2019‐1” means the City of San Bernardino Community Facilities District No. 2019‐ 1 (Maintenance Services).    “City” means the City of San Bernardino.     “Contingent Special Tax B Requirement” means that amount required in any Fiscal Year, if the POA  is unable to maintain the Service(s) to: (i) pay the costs of Services incurred or otherwise payable in  the Calendar Year commencing in such  Fiscal  Year;  (ii)  fund  an  operating  reserve  for  the  costs   of  Services  as determined by the Administrator; less a credit for funds available to reduce the annual  Special Tax B (Contingent) levy as determined by the Administrator.    “County” means the County of San Bernardino.    “Developed Property” means all Assessor’s Parcels of Taxable Property for which a building permit  for new construction has been issued on or prior to March 1 preceding the Fiscal Year in which the  Special Tax is being levied.    “Exempt Property” means all Assessors’ Parcels designated as being exempt from the Special Tax as  provided for in Section G.     “Final Map” means a subdivision of property by recordation of a final map, parcel map, or lot line  adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.)  or recordation of a condominium plan pursuant to California Civil Code 1352 that creates individual  lots for which building permits may be issued without further subdivision.      “Fiscal Year” means the period from and including July 1st of any year to and including the following  June 30th.    “Land Use Category” or “LUC” means any of the categories contained in Section B hereof to which an  Assessor’s Parcel is assigned consistent with the land use approvals that have been received or  proposed for the Assessor’s Parcel as of March 1 preceding the Fiscal Year in which the Special Tax is  being levied.    “Maximum Special Tax” means either Maximum Special Tax A and/or Maximum Special Tax B  (Contingent), as applicable.    “Maximum Special Tax A” means the Maximum Special Tax A, as determined in accordance with  Section C below that can be levied in any Fiscal Year on any Assessor's Parcel of Taxable Property  within CFD No. 2019‐1.    26.d Packet Pg. 903 Attachment: Attachment 4 - Resolution No. 2021-16: Exhibit C - Rate and Method of Apportionment of Special Taxes (7018 : Declaring Intent to City of San Bernardino 3  Community Facilities District No. 2019‐1 (Maintenance Services)   “Maximum Special Tax B (Contingent)” means the Maximum Special Tax B (Contingent), as  determined in accordance with Section C below that can be levied in any Fiscal Year on any Assessor's  Parcel of Taxable Property within CFD No. 2019‐1.    “Multi‐Family Residential Property” means any Assessor’s Parcel of residential property that consists  of a building or buildings comprised of attached Residential Units sharing at least one common wall  with another unit.   “Non‐Residential Property” or “NR” means all Assessor's Parcels of Taxable Property for which a  building permit(s) was issued for a non‐residential use.  The Administrator shall make the  determination if an Assessor’s Parcel is Non‐Residential Property.   “Property Owner’s Association” or “POA” means the property owner’s association or homeowner’s   association established to maintain certain landscaping within a Tax Zone.    “Proportionately” means for Taxable Property that is: (i) Developed Property, that the ratio of the  actual Special Tax levy to the Maximum Special Tax is the same for all Parcels of Developed Property  with the same Tax Zone, (ii) Approved Property, that the ratio of the actual Special Tax levy to the  Maximum Special Tax is the same for all Parcels of Approved Property with the same Tax Zone, and  (iii) Undeveloped Property that the ratio of the actual Special Tax levy per acre to the Maximum  Special Tax per acre is the same for all Parcels of Undeveloped Property with the same Tax Zone.    “Residential Unit” or "RU" means a residential unit that is used or intended to be used as a domicile  by one or more persons, as determined by the Administrator.    “Residential Property” means all Assessor’s Parcels of Taxable Property upon which completed  Residential Units have been constructed or for which building permits have been or may be issued for  purposes of constructing one or more Residential Units.    “Service(s)” means services permitted under the Mello‐Roos Community Facilities Act of 1982  including, without limitation, those services authorized to be funded by CFD No. 2019‐1 as set forth  in the documents adopted by the City Council at the time the CFD was formed.     “Single Family Residential Property” means any residential property other than Multi‐Family  Residential Property on an Assessor’s Parcel.  “Special Tax(es)” means the Special Tax A and/or Special Tax B (Contingent) to be levied in each Fiscal  Year on each Assessor’s Parcel of Taxable Property.    “Special Tax A” means the annual special tax to be levied in each Fiscal Year on each Assessor’s Parcel  of Taxable Property to fund the Special Tax A Requirement.    "Special Tax A Requirement" means for each Tax Zone, that amount to be collected in any Fiscal Year  to pay for certain costs as required to meet the needs for such Tax Zone of CFD No. 2019‐1 in both  the current Fiscal Year and the next Fiscal Year. The costs to be covered shall be the direct costs for  maintenance services including but not limited to (i) maintenance and lighting of parks, parkways,  streets, roads and open space, (ii) maintenance and operation of water quality improvements, (iii)  public street sweeping, (iv) fund an operating reserve for the costs of Services as determined by the  Administrator, and (v) Administrative Expenses. Under no circumstances shall the Special Tax A  Requirement include funds for Bonds.  26.d Packet Pg. 904 Attachment: Attachment 4 - Resolution No. 2021-16: Exhibit C - Rate and Method of Apportionment of Special Taxes (7018 : Declaring Intent to City of San Bernardino 4  Community Facilities District No. 2019‐1 (Maintenance Services)   “Special Tax B (Contingent)” means the Special Tax B (Contingent) to be levied in each Fiscal Year on  each Assessor’s Parcel of Taxable Property to fund the Contingent Special Tax B Requirement, if  required.    "Taxable Property" means all Assessor’s Parcels within CFD No. 2019‐1, which are not Exempt  Property.    “Taxable Unit” means a Residential Unit, Building Square Footage, or an Acre. "Tax Zone" means a mutually exclusive geographic area, within which particular Special Tax rates may  be levied pursuant to this Rate and Method of Apportionment of Special Tax.  Appendix C identifies  the Tax Zone in CFD No. 2019‐1 at formation; additional Tax Zones may be created when property is  annexed into the CFD.    "Tax Zone 1" means the specific geographic area identified on the CFD Boundary Map as Tax Zone 1.    "Tract(s)" means an area of land; i) within a subdivision identified by a particular tract number on a  Final Map, ii) identified within a Parcel Map; or iii) identified within lot line adjustment approved for  subdivision.    “Undeveloped Property” means, for each Fiscal Year, all Taxable Property not classified as Developed  Property or Approved Property.    B. ASSIGNMENT TO LAND USE CATEGORIES  For each Fiscal Year, all Assessor’s Parcels of Taxable Property within CFD No. 2019‐1 shall be classified  as Developed Property, Approved Property, or Undeveloped Property, and shall be subject to the levy  of Special Taxes as determined pursuant to Sections C and D below. Assessor’s Parcels of Developed  Property and Approved Property shall be classified as either Residential Property or Non‐Residential  Property.  Residential Property shall be further classified as Single Family Residential Property or  Multi‐Family Residential Property and the number of Residential Units shall be determined by the  Administrator.    C. MAXIMUM SPECIAL TAX RATES  For purposes of determining the applicable Maximum Special Tax for Assessor’s Parcels of Developed  Property and Approved Property which are classified as Residential Property, all such Assessor’s  Parcels shall be assigned the number of Residential Unit(s) constructed or to be constructed thereon  as specified in or shown on the building permit(s) issued or Final Map as determined by the  Administrator.  For Parcels of undeveloped property zoned for development of single family attached  or multi‐family units, the number of Residential Units shall be determined by referencing the  condominium plan, apartment plan, site plan or other development plan, or by assigning the  maximum allowable units permitted based on the underlying zoning for the Parcel.  Once a single  family attached or multi‐family building or buildings have been built on an Assessor's Parcel, the  Administrator shall determine the actual number of Residential Units contained within the building  or buildings, and the Special Tax A levied against the Parcel in the next Fiscal Year shall be calculated  by multiplying the actual number of Residential Units by the Maximum Special Tax per Residential  Unit identified for the Tract below or as included in Appendix A as each Annexation occurs.  For purposes of determining the applicable Maximum Special Tax for Assessor’s Parcels of Developed  Property and Approved Property which are classified as Non‐Residential Property, all such Assessor’s  26.d Packet Pg. 905 Attachment: Attachment 4 - Resolution No. 2021-16: Exhibit C - Rate and Method of Apportionment of Special Taxes (7018 : Declaring Intent to City of San Bernardino 5  Community Facilities District No. 2019‐1 (Maintenance Services)   Parcels shall be assigned the number of Building Square Footage or Acres as shown on the Final Map  as determined by the Administrator.  Once the Administrator determines the actual number of  Building Square Footage or Acres for the Assessor’s Parcels, the Special Tax A levied against the  Assessor’s Parcel in the next Fiscal Year shall be calculated by multiplying the number of Building  Square Footage or Acres by the Maximum Special Tax per Taxable Unit identified for the Tax Zone  below or as included in Appendix A as each Annexation occurs.  1.  Special Tax A  a. Developed Property  (i) Maximum Special Tax A   The Maximum Special Tax A for each Assessor’s Parcel of Developed Property shall be specific  to each Tax Zone within the CFD.  When additional property is annexed into CFD No. 2019‐1,  the rate and method adopted for the annexed property shall reflect the Maximum Special Tax  A for the Tax Zones annexed and included in Appendix A.  The Maximum Special Tax A for  Developed Property for Fiscal Year 2019‐2020 within Tax Zone 1 is identified in Table 1 below:  TABLE 1  MAXIMUM SPECIAL TAX A RATES  DEVELOPED PROPERTY    Tax  Zone  Tract Land Use Category  Taxable  Unit  Maximum  Special Tax A  1 TR 17170 Single Family Residential Property RU $961    (ii) Increase in the Maximum Special Tax A   On each July 1, commencing on July 1, 2020 the Maximum Special Tax A for Developed  Property shall increase by i) the percentage increase in the Consumer Price Index (All Items)  for Los Angeles ‐ Riverside ‐ Orange County (1982‐84 = 100) since the beginning of the  preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater.    (iii) Multiple Land Use Categories   In some instances an Assessor's Parcel of Developed Property may contain more than one  Land Use Category.  The Maximum Special Tax A that can be levied on an Assessor's Parcel  shall be the sum of the Maximum Special Tax A that can be levied for each Land Use Category  located on that Assessor's Parcel.  For an Assessor's Parcel that contains more than one land  use, the Acreage of such Assessor's Parcel shall be allocated to each type of property based  on the amount of Acreage designated for each land use as determined by reference to the  site plan approved for such Assessor's Parcel.  The Administrator's allocation to each type of  property shall be final.    b.  Approved Property  The Maximum Special Tax A for each Assessor’s Parcel of Approved  Property shall be specific to  each Tax Zone within the CFD.  When additional property is annexed into CFD No. 2019‐1, the rate  and method adopted for the annexed property shall reflect the Maximum Special Tax A for the  Tax Zone annexed and included in Appendix A.  The Maximum Special Tax A for Approved property  Fiscal Year 2019‐20 within Tax Zone 1 is identified in Table 2 below:  26.d Packet Pg. 906 Attachment: Attachment 4 - Resolution No. 2021-16: Exhibit C - Rate and Method of Apportionment of Special Taxes (7018 : Declaring Intent to City of San Bernardino 6  Community Facilities District No. 2019‐1 (Maintenance Services)   TABLE 2  MAXIMUM SPECIAL TAX A RATES  APPROVED PROPERTY    Tax  Zone  Tract Land Use Category  Taxable  Unit  Maximum  Special Tax A  1 TR 17170 Single Family Residential RU $961    On each July 1, commencing on July 1, 2020 the Maximum Special Tax A for Approved Property  shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Los Angeles  ‐ Riverside ‐ Orange County (1982‐84 = 100) since the beginning of the preceding Fiscal Year, or ii)  by two percent (2.0%), whichever is greater.    c.  Undeveloped Property  The Maximum Special Tax A for each Assessor’s Parcel of Undeveloped Property shall be specific  to each Tax Zone within the CFD.  When additional property is annexed into CFD No. 2019‐1, the  rate and method adopted for the annexed property shall reflect the Maximum Special Tax A for  the Tax Zone annexed and included in Appendix A.  The Maximum Special Tax A for Undeveloped  Property for Fiscal Year 2019‐20 within Tax Zone 1 is identified in Table 3 below:  TABLE 3  MAXIMUM SPECIAL TAX A RATES  UNDEVELOPED PROPERTY    Tax Zone Tracts Taxable Unit Maximum Special Tax A  1 TR 17170 Acre $4,338    On each July 1, commencing on July 1, 2020 the Maximum Special Tax A for Undeveloped Property  shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Los Angeles  ‐ Riverside ‐ Orange County (1982‐84 = 100) since the beginning of the preceding Fiscal Year, or ii)  by two percent (2.0%), whichever is greater.    2. Special Tax B (Contingent)  The City Council shall levy Special Tax B (Contingent) only in the event the POA defaults in its bligation  to maintain the Contingent Services, which default shall be deemed to have occurred, as determined  by the Administrator, in each of the following circumstances:    (a) The POA files for bankruptcy;  (b) The POA is dissolved;  (c) The POA ceases to levy annual assessments for the Contingent Services; or  (d) The POA fails to provide the Contingent Services at the same level as the City provides similar  services and maintains similar improvements throughout the City and within ninety (90) days  after written notice from the City, or such longer period permitted by the City Manager, fails  to remedy the deficiency to the reasonable satisfaction of the City Council.    a. Developed Property     (i) Maximum Special Tax B (Contingent)  26.d Packet Pg. 907 Attachment: Attachment 4 - Resolution No. 2021-16: Exhibit C - Rate and Method of Apportionment of Special Taxes (7018 : Declaring Intent to City of San Bernardino 7  Community Facilities District No. 2019‐1 (Maintenance Services)    The Maximum Special Tax B (Contingent) for each Assessor’s Parcel of Taxable Property is  shown in Table 4 and shall be specific to each Tax Zone within the CFD.  When additional  property is annexed into CFD No. 2019‐1, the rate and method adopted for the annexed  property shall reflect the Maximum Special Tax B (Contingent) for each Tax Zones annexed  and included in Appendix A.  The Maximum Special Tax B (Contingent) for Fiscal Year 2019‐20  within Tax Zone 1 is identified in Table 4 below:  TABLE 4  MAXIMUM SPECIAL TAX B (CONTINGENT) RATES  DEVELOPED PROPERTY    Tax  Zone  Tract Land Use Category  Taxable  Unit  Maximum Special   Tax B (Contingent)  1 TR 17170 Single Family Residential Property RU $0    (ii) Increase in the Maximum Special Tax B (Contingent)   On each July 1, commencing on July 1, 2020 the Maximum Special Tax B (Contingent) for  Developed Property shall increase by i) the percentage increase in the Consumer Price Index  (All Items) for Los Angeles ‐ Riverside ‐ Orange County (1982‐84 = 100) since the beginning of  the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater.    (iii) Multiple Land Use Categories   In some instances an Assessor's Parcel of Developed Property may contain more than one  Land Use Category.  The Maximum Special Tax B (Contingent) that can be levied on an  Assessor's Parcel shall be the sum of the Maximum Special Tax B (Contingent) that can be  levied for each Land Use Category located on that Assessor's Parcel.  For an Assessor's Parcel  that contains more than one land use, the Acreage of such Assessor's Parcel shall be allocated  to each type of property based on the amount of Acreage designated for each land use as  determined by reference to the site plan approved for such Assessor's Parcel.  The  Administrator's allocation to each type of property shall be final.    b.  Approved Property  The Maximum Special Tax B (Contingent) for each Assessor’s Parcel of Taxable Property is shown  in Table 5 and shall be specific to each Tax Zone within the CFD.  When additional property is  annexed into CFD No. 2019‐1, the rate and method adopted for the annexed property shall reflect  the Maximum Special Tax B (Contingent) for the Tax Zone annexed and included in Appendix A.   The Maximum Special Tax B (Contingent) for Fiscal Year 2019‐20 within the Tax Zone is identified  in Table 5 below:  TABLE 5  MAXIMUM SPECIAL TAX B (CONTINGENT) RATES  APPROVED PROPERTY    Tax  Zone  Tract Land Use Category  Taxable  Unit  Maximum Special   Tax B (Contingent)  1 TR 17170 Single Family Residential Property RU $0    On each July 1, commencing on July 1, 2020 the Maximum Special Tax B (Contingent) for Approved  Property shall increase by i) the percentage increase in the Consumer Price Index (All Items) for  26.d Packet Pg. 908 Attachment: Attachment 4 - Resolution No. 2021-16: Exhibit C - Rate and Method of Apportionment of Special Taxes (7018 : Declaring Intent to City of San Bernardino 8  Community Facilities District No. 2019‐1 (Maintenance Services)   Los Angeles ‐ Riverside ‐ Orange County (1982‐84 = 100) since the beginning of the preceding  Fiscal Year, or ii) by two percent (2.0%), whichever is greater.    c.  Undeveloped Property  The Maximum Special Tax B (Contingent) for each Assessor’s Parcel of Taxable Property is shown  in Table 6 and shall be specific to each Tax Zone within the CFD.  When additional property is  annexed into CFD No. 2019‐1, the rate and method adopted for the annexed property shall reflect  the Maximum Special Tax B (Contingent) for the Tax Zone annexed and included in Appendix A.   The Maximum Special Tax B (Contingent) for Fiscal Year 2019‐20 within the Tax Zone is identified  in Table 6 below:  TABLE 6  MAXIMUM SPECIAL TAX B (CONTINGENT) RATES  UNDEVELOPED PROPERTY    Tax Zone  Tracts Taxable Unit  Maximum Special   Tax B (Contingent)  1 TR 17170 Acre $0    On each July 1, commencing on July 1, 2020 the Maximum Special Tax B (Contingent) for Undeveloped  Property shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Los  Angeles ‐ Riverside ‐ Orange County (1982‐84 = 100) since the beginning of the preceding Fiscal Year,  or ii) by two percent (2.0%), whichever is greater.    D. METHOD OF APPORTIONMENT OF ANNUAL SPECIAL TAX  1.  Special Tax A  Commencing with Fiscal Year 2019‐20 and for each following Fiscal Year, the Council shall determine  the Special Tax A Requirement and shall levy the Special Tax A on all Assessor’s Parcels of Taxable  Property until the aggregate amount of Special Tax A equals the Special Tax A Requirement for each  Tax Zone.  The Special Tax A shall be levied for each Fiscal Year as follows:    First: The Special Tax A shall be levied Proportionately on all Assessor’s Parcels of Developed  Property within each Tax Zone up to 100% of the applicable Maximum Special Tax to satisfy the Special  Tax A Requirement for such Tax Zone;    Second: If additional moneys are needed to satisfy the Special Tax A Requirement for a Tax Zone  after the first step has been completed, the Special Tax A shall be levied Proportionately on each  Parcel of Approved Property within such Tax Zone up to 100% of the Maximum Special Tax A for  Approved Property;    Third: If additional monies are needed to satisfy the Special Tax A Requirement for a Tax Zone  after the first two steps has been completed, the Special Tax A shall be levied Proportionately on all  Assessor’s Parcels of Undeveloped Property within such Tax Zone up to 100% of the Maximum Special  Tax A for Undeveloped Property.  2.  Special Tax B (Contingent)  Commencing with Fiscal Year in which Special Tax B (Contingent) is authorized to be levied and for  each following Fiscal Year, the City Council shall determine the Contingent Special Tax B (Contingent)  Requirement for each Tax Zone, if any, and shall levy the Special Tax on all Assessor’s Parcels of  26.d Packet Pg. 909 Attachment: Attachment 4 - Resolution No. 2021-16: Exhibit C - Rate and Method of Apportionment of Special Taxes (7018 : Declaring Intent to City of San Bernardino 9  Community Facilities District No. 2019‐1 (Maintenance Services)   Taxable Property within such Tax Zone until the aggregate amount of Special Tax B (Contingent) equals  the Special Tax B ( Contingent) Requirement for such Tax Zone.  The Special Tax B (Contingent) Shall  be levied for each Fiscal Year as follows:    First: The Special Tax shall be levied Proportionately on all Assessor’s Parcels of Developed  Property for a Tax Zone up to 100% of the applicable Maximum Special Tax B (Contingent) to satisfy  the Contingent Special Tax B Requirement;    Second: If additional moneys are needed to satisfy the Contingent Special Tax B Requirement after  the first step has been completed, the Special Tax B (Contingent) shall be levied Proportionately on  each Parcel of Approved Property within such Tax Zone up to 100% of the Maximum Special Tax B  (Contingent) for Approved Property;    Third: If additional monies are needed to satisfy the Contingent Special Tax B Requirement after  the first two steps has been completed, the Special Tax B (Contingent) shall be levied Proportionately  on all Assessor’s Parcels of Undeveloped Property within such Tax Zone up to 100% of the Maximum  Special Tax B (Contingent) for Undeveloped Property.      E. FUTURE ANNEXATIONS  It is anticipated that additional properties will be annexed to CFD No. 2019‐1 from time to time.  As  each annexation is proposed, an analysis will be prepared to determine the annual cost for providing  Services.  Based on this analysis, the property to be annexed, pursuant to California Government Code  section 53339 et seq. will be assigned to the appropriate Maximum Special Tax rate for the Tax Zone  when annexed and included in Appendix A.    F. DURATION OF SPECIAL TAX   For each Fiscal Year, the Special Tax A shall be levied as long as the Services are being provided.  For each Fiscal Year, the Special Tax B (Contingent) shall be levied as long as the Contingent Services  are being provided.    G. EXEMPTIONS    The City shall classify as Exempt Property within CFD No. 2019‐1, any Assessor’s Parcels; (i) which are  owned by, irrevocably offered for dedication, encumbered by or restricted in use by any public entity;  (ii) with public or utility easements making impractical their utilization for other than the purposes set  forth in the easement; (iii) which are privately owned but are encumbered by or restricted solely for  public uses; or (iv) which is in use in the performance of a public function as determined by the  Administrator.     H. APPEALS   Any property owner claiming that the amount or application of the Special Taxes are not correct may  file a written notice of appeal with the City not later than twelve months after having paid the first  installment of the Special Tax that is disputed.  A representative(s) of CFD No. 2019‐1 shall promptly  review the appeal, and if necessary, meet with the property owner, consider written and oral evidence  regarding the amount of the Special Tax, and rule on the appeal.  If the representative’s decision  requires that the Special Tax for an Assessor’s Parcel be modified or changed in favor of the property  owner, a cash refund shall not be made, but an adjustment shall be made to the Special Tax on that  Assessor’s Parcel in the subsequent Fiscal Year(s).    26.d Packet Pg. 910 Attachment: Attachment 4 - Resolution No. 2021-16: Exhibit C - Rate and Method of Apportionment of Special Taxes (7018 : Declaring Intent to City of San Bernardino 10  Community Facilities District No. 2019‐1 (Maintenance Services)      I. MANNER OF COLLECTION   The Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem  property taxes, provided, however, that CFD No. 2019‐1 may collect the Special Tax at a different time  or in a different manner if necessary to meet its financial obligations.     26.d Packet Pg. 911 Attachment: Attachment 4 - Resolution No. 2021-16: Exhibit C - Rate and Method of Apportionment of Special Taxes (7018 : Declaring Intent to City of San Bernardino 11  Community Facilities District No. 2019‐1 (Maintenance Services)   APPENDIX A    CITY OF SAN BERNARDINO  COMMUNITY FACILITIES DISTRICT NO. 2019‐1 (MAINTENANCE SERVICES)                  COST ESTIMATE  Special Tax A Services ‐ The estimate breaks down the costs of providing one year's maintenance  services for Fiscal Year 2021‐22.  These services are being funded by the levy of Special Tax A for  Community Facilities District No. 2019‐1.  TAX ZONE 9   LM 2019‐021    Item Description Estimated Cost  1 Lighting $900  2 Streets $8,957  3 Reserves $135  4 Admin $986  Total  $10,978    Special Tax B Contingent Services – The estimate in the table below breaks down the costs of  providing one year’s contingent maintenance services for Fiscal Year 2021‐22. If necessary, these  services will be funded by the levy of Special Tax B (Contingent) for Community Facilities District  No. 2019‐1 Tax Zone 9.   TAX ZONE 9 (CONTINGENT SERVICES)  LM 2019‐021    Item Description Estimated Cost  1 Drainage $2,383  2 Reserves $238  3 Admin $500  Total  $3,121    TAX ZONE 9  FY 2021‐22 MAXIMUM SPECIAL TAX RATES  DEVELOPED PROPERTY AND APPROVED PROPERTY     Land Use   Category  Taxable   Unit  Maximum   Special Tax A  Maximum   Special Tax B  Non‐Residential Property Acre $815 $232  26.d Packet Pg. 912 Attachment: Attachment 4 - Resolution No. 2021-16: Exhibit C - Rate and Method of Apportionment of Special Taxes (7018 : Declaring Intent to City of San Bernardino 12  Community Facilities District No. 2019‐1 (Maintenance Services)   TAX ZONE 9  FY 2021‐22 MAXIMUM SPECIAL TAX RATES   UNDEVELOPED PROPERTY    Taxable   Unit  Maximum   Special Tax A  Maximum   Special Tax B  Acre $815 $232          26.d Packet Pg. 913 Attachment: Attachment 4 - Resolution No. 2021-16: Exhibit C - Rate and Method of Apportionment of Special Taxes (7018 : Declaring Intent to City of San Bernardino 13  Community Facilities District No. 2019‐1 (Maintenance Services)   TAX ZONE SUMMARY      Annexation  Tax  Zone  Tract  APN  Fiscal  Year  Maximum  Special Tax A  Maximum  Special Tax B    Subdivider  Original 1 17170 2019‐20 $961 / RU $0 / RU Santiago Communities, Inc.  1 2 17329 2019‐20 $473 / RU $0 / RU JEC Enterprises, Inc.  2 3 PM 19814 2020‐21 $608 / Acre $0 / Acre GWS #4 Development, LLC  3 4 0266‐041‐39 2019‐20 $1,136 / Acre $0 / Acre Devore Storage Facility, LLC  4 5 TR 20006 2020‐21 $344 / RU $57 / RU TH Rancho Palma, LLC  5 6 PM 19701 2020‐21 $1,895 / Acre $528 / Acre Strata Palma, LLC  6 7 PM 20112 2020‐21 $3,197 / Acre $0 / Acre San Bernardino Medical  Center LLC  7 8 TR 20293 2021‐22 $2,913 / Acre $334 / Acre ICO Fund VI, LLC  8 9 LM 2019‐021 2021‐22 $815 / Acre $232 / Acre TR 2600 Cajon Industrial LLC      ESCALATION OF MAXIMUM SPECIAL TAXES  On each July 1, commencing on July 1, 2020 the Maximum Special Tax shall increase by i) the  percentage increase in the Consumer Price Index (All Items) for Los Angeles ‐ Riverside ‐ Orange  County (1982‐84 = 100) since the beginning of the preceding Fiscal Year, or ii) by two percent  (2.0%), whichever is greater.  26.d Packet Pg. 914 Attachment: Attachment 4 - Resolution No. 2021-16: Exhibit C - Rate and Method of Apportionment of Special Taxes (7018 : Declaring Intent to City of San Bernardino 14  Community Facilities District No. 2019‐1 (Maintenance Services)   APPENDIX B    CITY OF SAN BERNARDINO  COMMUNITY FACILITIES DISTRICT NO. 2019‐1 (MAINTENANCE SERVICES)           DESCRIPTION OF AUTHORIZED SERVICES    The services which may be funded with proceeds of the special tax of CFD No. 2019‐1, as provided by  Section 53313 of the Act, will include all costs attributable to maintaining, servicing, cleaning, repairing  and/or replacing landscaped areas (may include reserves for replacement) in public street right‐of‐ways,  public landscaping, public open spaces and other similar landscaped areas officially dedicated for public  use. These services including the following:  (a)    maintenance and lighting of parks, parkways, streets, roads and open space, which  maintenance and lighting services may include, without limitation, furnishing of electrical power to street  lights and traffic signals; repair and replacement of damaged or inoperative light bulbs, fixtures and  standards; maintenance (including irrigation and replacement) of landscaping vegetation situated on or  adjacent to parks, parkways, streets, roads and open space; maintenance and repair of irrigation facilities;  maintenance of public signage; graffiti removal from and maintenance and repair of public structures  situated on parks, parkways, streets, roads and open space; maintenance and repair of playground or  recreation program equipment or facilities situated on any park; and    (b)  maintenance and operation of water quality improvements which include storm drainage  and flood protection facilities, including, without limitation, drainage inlets, catch basin inserts, infiltration  basins, flood control channels, fossil fuel filters, and similar facilities.  Maintenance services may include  but is not limited to the repair, removal or replacement of all or part of any of the water quality  improvements, fossil fuel filters within the public right‐of‐way including the removal of petroleum  hydrocarbons and other pollutants from water runoff, or appurtenant facilities, clearing of inlets and  outlets; erosion repairs; and cleanup to improvements, and other items necessary for the maintenance,  servicing; or both of the water quality basin improvements within flood control channel improvements;  and    (c)  public street sweeping, on the segments of the arterials within the boundaries of CFD No.  2019‐1; as well as local roads within residential subdivisions located within CFD No. 2019‐1; and any  portions adjacent to the properties within CFD No. 2019‐1; and    In addition to payment of the cost and expense of the forgoing services, proceeds of the special tax may  be expended to pay “Administrative Expenses,” as said term is defined in the Rate and Method of  Apportionment.   The above services shall be limited to those provided within the boundaries of CFD No. 2019‐1 or for the  benefit of the properties within the boundaries of CFD No. 2019‐1, as the boundary is expanded from time  to time by anticipated annexations, and said services may be financed by proceeds of the special tax of  CFD No. 2019‐1 only to the extent that they are in addition to those provided in the territory of CFD No.  2019‐1 before CFD No. 2019‐1 was created.                26.d Packet Pg. 915 Attachment: Attachment 4 - Resolution No. 2021-16: Exhibit C - Rate and Method of Apportionment of Special Taxes (7018 : Declaring Intent to City of San Bernardino 15  Community Facilities District No. 2019‐1 (Maintenance Services)     APPENDIX C    CITY OF SAN BERNARDINO  COMMUNITY FACILITIES DISTRICT NO. 2019‐1 (MAINTENANCE SERVICES)  PROPOSED BOUNDARIES AND POTENTIAL ANNEXATION AREA BOUNDARIES    26.d Packet Pg. 916 Attachment: Attachment 4 - Resolution No. 2021-16: Exhibit C - Rate and Method of Apportionment of Special Taxes (7018 : Declaring Intent to WESTRENAVE24TH STCAJON BLVDMEDICAL CENTER DR·|}þ210§¨¦215£¤660148-122-04ANNEXATION MAP NO. 8COMMUNITY FACILITIES DISTRICT NO. 2019-1(MAINTENANCE SERVICES)CITY OF SAN BERNARDINOCOUNTY OF SAN BERNARDINO, STATE OF CALIFORNIASHEET 1 OF 1 SHEETI HEREBY CERTIFY THAT THE WITHIN MAP SHOWING PROPOSEDBOUNDARIES OF COMMUNITY FACILITIES DISTRICT 2019-1(MAINTENANCE SERVICES) FOR THE CITY OF SAN BERNARDINO,COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, WASAPPROVED BY THE CITY COUNCIL OF THE CITY OF SANBERNARDINO AT A REGULAR MEETING THEREOF, HELDON THE ____ DAY OF ____________________, 20 ____. BY ITS RESOLUTION NO. ____________________ _________________________________________ CITY CLERK, CITY OF SAN BERNARDINO FILED IN THE OFFICE OF THE CITY CLERK THIS _____ DAY OF________, 20 ____. _________________________________________ CITY CLERK, CITY OF SAN BERNARDINO CFD 2019-1TAX ZONE 9^_£¤66£¤66£¤66§¨¦215§¨¦10·|}þ259·|}þ38·|}þ330·|}þ18·|}þ210THIS ANNEXATION MAP CORRECTY SHOWS THE LOT ORPARCEL OF LAND INCLUDED WITHIN THE BOUNDARIES OFTHE COMMUNITY FACILITIES DISTRICT. FOR DETAILSCONCERNING THE LINES AND DIMENSIONS OF LOTS ORPARCEL REFER TO THE COUNTY ASSESSOR MAPS FORFISCAL YEAR 2020-21. -LEGEND ANNEXATION AREA BOUNDARYPARCEL LINECITY BOUNDARYXXXX-XXX-XX ASSESSOR PARCEL NUMBER 9 TAX ZONETHIS MAP SHOWS THE BOUNDARIES OF AREAS TO BEANNEXED TO COMMUNITY FACILITIES DISTRICT NO. 2019-1(MAINTENANCE SERVICES), OF THE CITY OF SANBERNARDINO, COUNTY OF SAN BERNARDINO, STATE OFCALIFORNIA. THE BOUNDARIES OF WHICH COMMUNITY FACILITIESDISTRICT ARE SHOWN AND DESCRIBED ON THE MAPTHEREOF WHICH WAS PREVIOUSLY RECORDED ONJUNE 6, 2019 IN BOOK 88 OF MAPS OF ASSESSMENTAND COMMUNITY FACILITIES DISTRICT AT PAGE 32 ANDAS INSTRUMENT NO. 2019-0185323 IN THE OFFICE OF THECOUNTY RECORDER OF THE COUNTY OF SAN BERNARDINO,STATE OF CALIFORNIA. THIS MAP WAS FILED UNDER DOCUMENT NUMBER_____________, THIS ____ DAY OF _______, 20 ____, AT_____ M. IN BOOK ___ OF __________ AT PAGE ____, ATTHE REQUEST OF _____________________________IN THE AMOUNT OF $_________ BOB DUTTON ASSESSOR-RECORDER-CLERK COUNTY OF SAN BERNARDINO BY:________________________________ DEPUTY RECORDER SAN BERNARDINO COUNTY RECORDER'S CERTIFICATE926.ePacket Pg. 917Attachment: Attachment 5 - Resolution No. 2021-16; Exhibit D - Annexation and Potential Annexation 26.ePacket Pg. 918Attachment: Attachment 5 - Resolution No. 2021-16; Exhibit D - Annexation and Potential Annexation 26.f Packet Pg. 919 Attachment: Attachment 6 - Resolution No. 2021-16; Exhibit E - Signed Petition, Waiver and Consent (7018 : Declaring Intent to Annex 26.f Packet Pg. 920 Attachment: Attachment 6 - Resolution No. 2021-16; Exhibit E - Signed Petition, Waiver and Consent (7018 : Declaring Intent to Annex PARCEL A EXHIBIT "A" LEGAL DESCRIPTION AFTER LOT MERGER LM2019-021 THOSE PORTIONS OF THE NORTH 24 ACRES OF LOT 2, BLOCK 83, RANCHO SAN BERNARDINO, AS SHOWN BY MAP ON FILE MARCH 10, 1857 IN BOOK 7, PAGE 2, OF MAPS, RECORDS OF SAN BERNARDINO COUNTY; AND THAT PORTION OF THE MUSCUPIABE RANCHO, SITUATED IN SECTION 29, TOWNSHIP 1 NORTH, RANGE 4 WEST, SAN BERNARDINO BASE AND MERIDIAN, IF SAID LINES WERE EXTENDED ACROSS SAID RANCHO, IN THE COUNlY OF SAN BERNARDINO, AS SHOWN BY MAP ON FILE JUNE 21, 1872 IN BOOK 7, PAGE 23 OF MAPS, RECORDS OF SAID COUNTY; AND THAT PORTION OF LOT 1, BLOCK 83 OF RANCHO SAN BERNARDINO, AS SHOWN BY MAP ON FILE MARCH 10, 1857 IN BOOK 7, PAGE 2, OF MAPS, RECORDS OF SAN BERNARDINO COUNTY, CALIFORNIA, DESCRIBED AS FOLLOWS: ,... BEGINNING AT THE INTERSECTION OF THE NORTH LINE OF SAID LOT 2, BLOCK 83, RANCHO SAN BERNARDINO WITH THE SOUTHWESTERLY LINE OF CAJON BOULEVARD HAVING A SOUTHWESTERLY 30.00 FOOT HALF-WIDTH; THENCE ALONG THE SAID SOUTHWESTERLY LINE NORTH 38° 33' 35" WEST 73 .70 FEET TO AN INTERSECTION WITH THE NORTHEASTERLY PROLONGATION OF A LINE PARALLEL AND 10 FEET NORTHWESTERLY OF, MEASURE AT RIGHT ANGLES FROM THE CENTER LINE OF THAT CERTAIN DRAINAGE EASEMENT, IN FAVOR OF SAN BERNARDINO COUNTY FLOOD CONTROL DISTRICT, AS DESCRIBED IN DEED RECORDED JULY o,, 1954 AS INSTRUMENT NO� 471, IN BOOK 3418, PAGE 383, OF OFFICIAL RECORD, SAID COUNTY; THENCE ALONG SAID PARALLEL UNE SOUTH 440 57' 30" EAST 1075.61 FEET TO THE BEGINNING OF A TANGENT CURVE SOUTHEASTERLY HAVING A RADIUS OF 335 FEET; THENCE SOVTHWESTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 16° 09' 10" A DISTANCE OF 99.44 FEET TO THE EAST LINE OF MEDICAL CENTER DRIVE (FORMERLY MUSCOTT STREET) HAVING A EASTERLY 41.25 FOOT t-fALF-WIDTH; THENCE ALONG SAID EAST LINE OF MEDICAL CENTER DRIVE SOUTH o0 06' 46" EAST 10.91 FEET TO THE SOUTH UNE OF THE SAID NORTH 24 ACRES OF LOT 2, BLOCK 83;.THENCE ALONG SAID SOUTH LINE OF SAID NORTH 24 ACRES OF LOT 2, BLOCK 83 SOUTH 89° 52' 31" EAST 1249.95 FEET TO A POINT ON THE WESTERLY LINE OF WESTERN AVENUE HAVING A WESTERLY 30.00 FOOT HALF-WIDTH; THENCE ALONG THE WESTERLY LINE OF SAID WESTERN AVENUE NEXT THREE (3) COURSES NORTH 00 ° 00' 14a EAST 37.58 FEET, TO BEGINNING OF A TANGENT CURVE SOUTHEASTERLY HAVING A RADIUS OF 130.00 FEET; THEN NORTHEASTERLY ALONG SAID OJRVE THROUGH A CENTRAL ANGLE OF 51° 01' 15" A DISfANCE OF 115.76 FEET; NORTH 51 o 01' 29" EAST 36.53 FEET TO A POINT ON A NON-TANGENT CURVE CONCAVE NORTHERLY, HAVING A RADIUS OF 5869.65 FEET WITH RADIAL BEARING OF SOUTH 51° 21' 56" WEST, ALSO BEING THE SOUTHWESTERLY LINE OF SAID CAJON BOULEVARD, HAVING A SOUTHWESTERLY 60.00 FOOT HALF-WIDTH; THENCE COl'fTINUiNG ALONG SOUTHWESTERLY LINE OF SAID CAJON BOULEVARD ALONG SAID QJRVE NORTHWESTERLY TI-fROUGH A CENlRAL ANGLE OF 00° 05' 32" A DISTANCE OF 9.45 FEET; THENCE CONTINUING ALONG SAID SOlJTHWESTERL Y LINE OF SAID CAJON BOULEVARD NORTH 38° 32' 32" WEST 797.14 TO THE NORTH LINE OF SAID LOT 2, BLOCK 83; THENCE ALONG SAID NORTH UNE OF SAID LOT 2, BLOCK 83, SOUTH 89° 52' 55" EAST 38.42 FEET TO THE POINT OF BEGINNING.Page 1 of2 26.f Packet Pg. 921 Attachment: Attachment 6 - Resolution No. 2021-16; Exhibit E - Signed Petition, Waiver and Consent (7018 : Declaring Intent to Annex 26.f Packet Pg. 922 Attachment: Attachment 6 - Resolution No. 2021-16; Exhibit E - Signed Petition, Waiver and Consent (7018 : Declaring Intent to Annex 13.677 ACRES. MORE OR LESS EXHIBIT B LOT MERGER NO. LM 2019-021 LEGEND MERGER BOUNDARY LOT LINE TO BE MERGED - - - - - - NORTH LINE OF LOT 2, BLOCK 83,PER BOOK 7, PAGE 2 .. -. -.. -----------------•· -------. ---_ _\ --------------------- � I � SCALE: ...J � a� I� 1"=260' '/ ' 6=16"09'10"R=335.00' L=94.44' T=47.54' LOT LINE TO BE MERGED LOT LINE TO BE MERG N51 "01 6=0"05'32" R=5869.65' L=9.45' S)·T=4.72' �� ��,� ':-...fl,,._ �� .O,;:;Q"()5'32"R=5869.65'L=9.45' T=4.72' � .0.=51"01'15"R=130.00' L=115.76' T=-62.04' J NOO"O SEE DETAIL •A" N89°52'31"W 1249.95' :' IV6t - ' 24TI-I : .,,,. \ STREET : .,.o.. ' 37.5 : · J,s, R '--THE SOUTH LINE OF THE NORTH 24 LSEE DETAIL "8" �� A CR ES OF LOT 2, BLOCK 83, R.S.B. PER RS 67/84 OWNERS NAMES: APN: 0148-122-03-l APN: 0148-181-01 I MVP SAN APN: 0148-022-07 BERNARDINO CAJON, LLC PREPARED UNDER THE SUPERVISION OF: ROBERT FILLMORE GREFE.Ci. 33052 z. .... i7-DATE: Page 1 of 1 0 0:::w 1-­z w(.) DETAIL "8" SCALE: 1•=80' 26.f Packet Pg. 923 Attachment: Attachment 6 - Resolution No. 2021-16; Exhibit E - Signed Petition, Waiver and Consent (7018 : Declaring Intent to Annex EXHIBIT F NOTICE OF PUBLIC HEARING ON INTENTION TO ANNEX TERRITORY TO AN EXISTING COMMUNITY FACILITIES DISTRICT 2019-1 (MAINTENANCE SERVICES) (ANNEXATION NO. 8) NOTICE IS HEREBY GIVEN that the City Council of the City of San Bernardino on January 20, 2021 adopted its Resolution No. 2021-___, in which it declared its intention to annex territory to existing Community Facilities District No. 2019-1 (Maintenance Services) (the "CFD No. 2019-1"), and to levy a special tax to pay for certain safety services, all pursuant to the provisions of the Mello-Roos Community Facilities Act of 1982, Chapter 2.5, Part 1, Division 2, Title 5 of the California Government Code. The resolution describes the territory to be annexed and describes the rate and method of apportionment of the proposed special tax. No change in the tax levied in the existing CFD No. 2019-1 is proposed. NOTICE IS HEREBY FURTHER GIVEN that the City Council has fixed 7:00 p.m., or as soon thereafter as practicable, Wednesday, March 3, 2021 at the Bing Wong Auditorium of the Norman F. Feldheym Public Library at 555 W. 6th Street, San Bernardino, California, as the time and place when and where the City Council will conduct a public hearing on the annexation of territory to CFD No. 2019-1. At the hearing, the testimony of all interest persons for or against the annexation of the territory or the levying of the special taxes will be heard. If and to the extent participation in the March 3, 2021 meeting must occur by teleconference, videoconference, or other electronic means authorized by the Ralph M. Brown Act or an Executive Order of the Governor of California, the means and methods for participating the meeting shall be posted on the Agenda for said meeting, which shall be posted at least 72 hours prior to the meeting on the City of San Bernardino (www.sbcity.org), and outside of the Bing Wong Auditorium of the Norman F. Feldheym Public Library at 555 W. 6th Street, San Bernardino, California, 92418. A copy of the Agenda will be made available upon request to the San Bernardino City Clerk's office at 909-384-5002. DATED: ____________, 2021 _________________________________________ City Clerk of the City of San Bernardino PUB: _______________, 2021   26.g Packet Pg. 924 Attachment: Attachment 7 - Resolution No. 2021-16; Exhibit F - Notice of Public Hearing (7018 : Declaring Intent to Annex Territory: CFD No. EXHIBIT G CITY OF SAN BERNARDINO COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA COMMUNITY FACILITIES DISTRICT NO. 2019-1 (MAINTENANCE SERVICES) ANNEXATION NO. 8 (March 3, 2021) This ballot is for the use of the authorized representative of the following owner of land within Community Facilities District No. 2019-1 (Maintenance Services) (“CFD No. 2019-1”) of the City of San Bernardino: Name of Landowner Number of Acres Owned Total Votes TR 2600 Cajon Industrial LLC 14.44 15 According to the provisions of the Mello-Roos Community Facilities Act of 1982, and resolutions of the City Council (the “Council”) of the City of San Bernardino (the “City”), the above-named landowner is entitled to cast the number of votes shown above under the heading “Total Votes,” representing the total votes for the property owned by said landowner. The City has sent the enclosed ballot to you so that you may vote on whether or not to approve the special tax. This special tax ballot is for the use of the property owner of the parcels identified below, which parcels are located within the territory proposed to form the CFD No. 2019-1, City of San Bernardino, County of San Bernardino, State of California. Please advise the City Clerk, at (909) 384-5002 if the name set forth below is incorrect or if you are no longer one of the owners of these parcels. This special tax ballot may be used to express either support for or opposition to the proposed special tax. To be counted, this special tax ballot must be signed below by the owner or, if the owner is not an individual, by an authorized representative of the owner. The ballot must then be delivered to the City Clerk, either by mail or in person, as follows: Mail Delivery: If by mail, place ballot in the return envelope provided, and mail no later than February 17, 2021, two calendar weeks prior to the date set for the election. Mailing later than this deadline creates the risk that the special tax ballot may not be received in time to be counted. Personal Delivery: If in person, deliver to the City Clerk at any time up to 7:00 p.m. on March 3, 2021, at the Clerk’s office at 201 N. “E” Street, Bldg A, City of San Bernardino, CA 92401. However delivered, this ballot must be received by the Clerk prior to the close of the public meeting on March 3, 2021. Very truly yours, Genoveva Rocha, CMC, City Clerk 26.h Packet Pg. 925 Attachment: Attachment 8 - Resolution No. 2021-16; Exhibit G - Special Election Ballot (7018 : Declaring Intent to Annex Territory: CFD No.   TO CAST THIS BALLOT, PLEASE RETURN THIS ENTIRE PAGE. OFFICIAL SPECIAL TAX BALLOT Name & Address of Property Owner: Assessor’s Parcel Number(s): TR 2600 Cajon Industrial LLC Attn: David Graves 801 Grand Ave. Des Moines, Iowa 50392 0148-122-04 CITY OF SAN BERNARDINO COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA COMMUNITY FACILITIES DISTRICT NO. 2019-1 (MAINTENANCE SERVICES) AN “X” OR OTHER MARK WILL CAST ALL VOTES ASSIGNED TO THIS BALLOT SPECIAL TAX BALLOT MEASURE MARK “YES” OR “NO” WITH AN “X”: Shall the City Council of the City of San Bernardino be authorized to levy a special tax on an annual basis at the rates and apportioned as described in Exhibit C to the Resolution Declaring its Intention to Annex territory to Community Facilities District No. 2019-1 (Maintenance Services) adopted by the City Council on January 20, 2021 (the “Resolution”), which is incorporated herein by this reference, within the territory identified on the map entitled “Annexation Map No. 8 of Community Facilities District No. 2019-1 (Maintenance Services) City of San Bernardino” to finance certain services as set forth in Section 4 to the Resolution (including incidental expenses), and shall an appropriation limit be established for the Community Facilities District No. 2019-1 (Maintenance Services) in the amount of special taxes collected? YES _________ NO _________ Certification for Special Election Ballot The undersigned is an authorized representative of the above-named landowner and is the person legally authorized and entitled to cast this ballot on behalf of the above-named landowner. I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct and that this declaration is executed on ____________, 20__.        TR 2600 Cajon Industrial LLC By: David Graves Principal Real Estate Investors Managing Director Signature Print Name Title   26.h Packet Pg. 926 Attachment: Attachment 8 - Resolution No. 2021-16; Exhibit G - Special Election Ballot (7018 : Declaring Intent to Annex Territory: CFD No. PROJECT MAP CFD NO. 2019-1 (MAINTENANCE SERVICES) TAX ZONE 9   26.iPacket Pg. 927Attachment: Attachment 9 - Project/Location Map (7018 : Declaring Intent to Annex Territory: CFD No. 26.jPacket Pg. 928Attachment: Attachment 10 - CFD Maintenance Area Exhibit (7018 : Declaring Intent to Annex Territory: Page 1 Consent Calendar City of San Bernardino Request for Council Action Date: January 20, 2021 To: Honorable Mayor and City Council Members From: Robert D. Field, City Manager By:Kris Jensen, Director of Public Works Subject: Declaring Intent to Annex Territory: CFD No. 2019-1 (Maintenance Services): Annexation No.7 (Ward 2) Recommendation Adopt Resolution No. 2021-17 of the Mayor and City Council of the City of San Bernardino, California, declaring its intention to annex territory into Community Facilities District No. 2019-1 (Maintenance Services) of the City of San Bernardino, adopting a map of the area to be proposed (Annexation No. 7) and authorizing the levy of a special taxes therein. Background On June 5, 2019, the Mayor and City Council approved Resolution No. 2019-81 establishing Community Facilities District No. 2019-1 (Maintenance Services) of the City of San Bernardino (the "CFD No. 2019-1" or "District") for the purpose of levying special taxes on parcels of taxable property to provide certain services which are necessary to meet increased demands placed upon the City. Discussion On July 17, 2019, the Mayor and City Council adopted Resolution No. 2019 -178, establishing CFD No. 2019-1 pursuant to the provisions of the Mello-Roos Community Facilities Act of 1982 (“Act”). CFD No. 2019 -1 allows for the levy of special taxes on parcels of taxable property for the purpose of providing certain services which are necessary to meet increased demands placed by development upon the Cit y. Development projects are subject to conditions of approval that require projects to form/annex a maintenance district. These districts apply an annual fee or special tax upon properties within the District which provide the revenue to offset the cost of maintenance of the public improvements necessary to serve the development. The Developer has agreed to initiate and conduct the CFD annexation proceedings pursuant to the Act. To that end, the Developer has submitted a "Consent and Waiver" form, which is on file in the City Clerk's office that authorizes the City to (1) hold the election and declare election results; (2) shorten election time requirements; (3) waive analysis and arguments; (4) waive all notice requirements relating to the conduct of the election immediately following the public hearing. 27 Packet Pg. 929 7041 Page 2 The public facilities and services proposed to be financed within the territory to be annexed to the District are the following: 1. Maintenance of median landscaping and other public improvements instal led within the public rights-of-way; and 2. Public lighting and appurtenant facilities, including street lights within public rights-of-way and traffic signals; and 3. Maintenance of streets, including pavement management, and provide street sweeping; and 4. Maintenance and operation of water quality improvements including storm drainage and flood protection facilities; and 5. City and County costs associated with the setting, levying and collection of the special tax, and in the administration of the District including the contract administration and for the collection of reserve funds. The proposed development includes approximately 9.66 gross acres of a vacant residential property to include 96 detached single -family units. The property is located north of I-10, south of Sycamore Lane between Ferree Street and Richardson Street. At build out this development will create 6.38 net taxable acres as a new Tax Zone No. 8 within CFD No. 2019-1, as shown in the boundary map and included in the Resolution of Intention as Exhibit “D”. In order to annex into CFD No. 2019 -1, a Resolution of Intention to annex property must be approved to identify the facilities to be maintained and establish the maximum special tax for this Tax Zone. The Resolution of Intention shall also set the date and time for the public hearing. The rate and method of apportionment of the special tax for this Tax Zone, (Tax Zone No. 8), is included as Exhibit “C” to the Resolution of Intention. The maximum annual special tax for this development has been calculated to be $216 per unit for FY 2021/22. This tax rate includes a Maximum Special Tax A of $194 per unit per year for maintenance services of public facilities and a Maximum Annual Special Tax B (Contingent) of $22 per unit per year. Special Tax B (Contingent) is for the maintenance and operation of the improvements described in Exhibit “B” attached hereto. If the Property Owners Association (POA) were to default of its obligation to maintain such improvements, the City would be able to collect funds to pay for those services. Annual Special Tax B (Contingent) rate is proposed to escalate each year at the greater of Consumer Price Index (CPI) or 2%. Attachment 3 attached to the staff report is a maintenance exhibit to illustrate which services are being maintained by the CFD and by the POA. In order to annex property to CFD No. 2019 -1 pursuant to the provisions of California Government Code Section 53311 et seq., the City must adopt a series of three statutorily required Resolutions and an Ordinance which are summarized below. 27 Packet Pg. 930 7041 Page 3 Resolution declaring City intent to annex territory to Community Facilities District No. 2019-1 including the boundary of the area to be annexed and the rate and method of apportionment of special taxes within the annexation area (the special tax applies only to properties within the annexation area). Resolution calling an election to submit to the qualified electors the question of levying a special tax within the area proposed to be annexed to the Dis trict. Resolution declaring the results of the election and directing the recording of the notice of special tax lien. Amend the Ordinance and order the levy and collection of special taxes in the District. With the adoption of the Resolution of In tention, the Public Hearing would be scheduled for March 3, 2021. 2020-2025 Key Strategic Targets and Goals This project is consistent with Key Target No 4: Ensure Development of a Well-Planned Balanced and Sustainable City. This project will contribute to ensure that the City is clean and attractive and provide infrastructure designed for long term economic growth. Fiscal Impact The individual property owners in the CFD will be responsible for annual payments of special taxes. Upon full completion of the development, it is estimated that there will be an annual collection of special tax revenues of approximately $20,717 to be used to pay for maintenance costs. On March 1 of each year, every taxable unit for which a building permit has been issued within the boundaries of the CFD will be subject to the special tax for the ensuing Fiscal Year. If the anticipated costs of maintaining the facilities in any given Fiscal Year, prior to build-out of the project, exceeds the special tax revenues available from parcels for which building permits have been issued, then the special tax may also be applied to property within recorded final subdivision maps, as well as other undeveloped property within the boundaries of the CFD. All costs associated with annexation into the CFD have been borne by the Developer. By annexing into the CFD, the costs of maintaining improvements located within the development will be financed through special taxes levied on the parcels within CFD No. 2019-1 and not through the City’s General Fund. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, adopt Resolution No. 2021-17 of the Mayor and City Council of the City of San Bernardino, California, declaring its intention to annex territory into Community Facilities District No. 2019-1 (Maintenance Services) of the City of San Bernardino, adopting a map of the area to be proposed (Annexation No. 7) and authorizing the levy of special taxes 27 Packet Pg. 931 7041 Page 4 therein. Attachments Attachment 1 Resolution No. 2021-17 Attachment 2 Resolution No. 2021-17; Exhibit A - Description of Territory Attachment 3 Resolution No. 2021-17; Exhibit B - Description of Authorized Services Attachment 4 Resolution No. 2021-17; Exhibit C - Rate and Method of Apportionment Attachment 5 Resolution No. 2021-17; Exhibit D - Annexation and Potential Annexation Boundary Maps Attachment 6 Resolution No. 2021-17; Exhibit E - Signed Petition, Waiver and Consent Attachment 7 Resolution No. 2021-17; Exhibit F - Notice of Public Hearing Attachment 8 Resolution No. 2021-17; Exhibit G - Special Election Ballot Attachment 9 Project/Location Map Attachment 10 CFD Area Maintenance Exhibit Ward: 2 Synopsis of Previous Council Actions: June 5, 2019 Mayor and City Council adopted Resolution No. 2019 -81, a Resolution of Intention to form Community Facilities District No. 2019-1 (Maintenance Services) of the City of San Bernardino (the “Resolution of Intention”), pursuant to the provisions of the “Mello - Roos Community Facilities Act of 1982”. July 17, 2019 Resolution No. 2019-178 was adopted establishing Community Facilities District No. 2019-1; Resolution No. 2019-179 was adopted declaring election results for Community Facilities District No. 2019-1; and first reading of Ordinance No. MC-1522 levying special taxes to be collected during FY 2019 -20 to pay annual costs of maintenance, services and expenses with respect to Community Facilities District No. 2019-1. August 7, 2019 Final reading of Ordinance No. MC-1522 levying special taxes to be collected during FY 2019-20 to pay annual costs of maintenance, services and expenses with respect to Community Facilities District No. 2019-1. 27 Packet Pg. 932 RESOLUTION NO. 2021-17 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, DECLARING ITS INTENTION TO ANNEX TERRITORY INTO COMMUNITY FACILITIES DISTRICT NO. 2019-1 (MAINTENANCE SERVICES) OF THE CITY OF SAN BERNARDINO, ADOPTING A MAP OF THE AREA TO BE PROPOSED (ANNEXATION NO. 7) AND AUTHORIZING THE LEVY OF A SPECIAL TAXES THEREIN WHEREAS, pursuant to the Mello-Roos Community Facilities Act of 1982 (the “Act”), on June 5, 2019, the City Council (the “City Council”) of the City of San Bernardino (th e “City”) approved Resolution No. 2019-081 establishing Community Facilities District No. 2019- 1 (Maintenance Services) of the City of San Bernardino, County of San Bernardino, State of California, defined the "CFD No. 2019-1", for the purpose of levying special taxes on parcels of taxable property therein for the purpose of providing certain services which are necessary to meet increased demands placed upon the City; and WHEREAS, the City Council has received a written instrument from the landowner in the CFD No. 2019-1 to initiate and conduct proceedings pursuant to the Act, to annex territory to CFD No. 2019-1 and consenting to the shortening of election time requirements, waiving analysis and arguments, and waiving all notice requirements relating to the conduct of the election; and WHEREAS, the City Council has been advised that certain property owners have requested that the area shown in Exhibit D be annexed territory to the boundaries of CFD No. 2019-1, that a rate and method of apportionment of the special tax to be levied therein be established. BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. Intent to Annex. The City Council hereby declares that it proposes and intends to conduct proceedings pursuant to Article 3.5 for the annexation to the Community Facilities District of the territory described in Exhibit A attached hereto. The City Council determines that the public convenience and necessity require that such territory be annexed to the Community Facilities District. SECTION 2. Name of the Community Facilities District. The name of the existing community facilities district is known as “Community Facilities District No. 2019-1 (Maintenance Services)”. SECTION 3. Description of Territory Proposed to be Annexed, Annexation Map. The territory proposed to be annexed are included within the boundaries within which property may annex to CFD No. 2019-1 and are more particularly described and shown on that certain map entitled “Boundaries – Potential Annexation Area Community Facilities District No. 2019-1 27.a Packet Pg. 933 Attachment: Attachment 1 - Resolution No. 2021-17 (7041 : Declaring Intent to Annex Territory: CFD No. 2019-1 (Maintenance Services): Resolution No. 2021-17 (Maintenance Services) of the City of San Bernardino, County of San Bernardino, State of California,” as recorded on June 6, 2019 in Book 88 of Maps of Assessment and Community Facilities District, Page 33, and as Instrument No. 2019-0185395 in the official records of the County of San Bernardino. The territory proposed to be annexed to the CFD No. 2019 -1 is described in Exhibit A attached hereto and by this reference made a part hereof. Such territo ry is also shown and described on the map thereof entitled "Annexation Map No. 7, Community Facilities District No. 2019-1 (Maintenance Services), City of San Bernardino, County of San Bernardino, State of California," which is on file with the City Clerk (the "Annexation Map") and attached hereto as Exhibit D. SECTION 4. Description of Authorized Services. The services proposed to be financed by CFD No. 2019-1 (the “Services”) are described in Exhibit B attached hereto. The cost of providing the Services includes “incidental expenses,” which include costs associated of CFD No. 2019-1, determination of the amount of special taxes, collection or payment of special taxes, or costs otherwise incurred in order to carry out the authorized purposes of CFD No. 2019-1. The Services authorized to be financed by CFD No. 2019-1 are in addition to those currently provided in the territory of CFD No. 2019 -1 and do not supplant services already available within that territory. SECTION 5. Levy of Special Taxes. Except where funds are otherwise available, a special tax sufficient to pay the costs of the Services (including incidental expenses), secured by recordation of a continuing lien against all nonexempt real property in CFD No. 2019-1, will be levied annually within CFD No. 2019-1. The Rate and Method of Apportionment, and manner of collection of the special tax are specified in Exhibit C. SECTION 6. Adoption of Annexation Map. Pursuant to Section 3110.5 of the Streets and Highways Code, the City Council adopts the Annexation Map as the map of the area proposed to be annexed to the CFD No. 2019-1. Pursuant to Section 3111 of said Code, the City Clerk shall file the original of the Annexation map in his office and shall file a copy of the Annexation Map with the County Recorder of the County of San Bernardino no later than 15 days prior to the date of the hearing specified in Section 7 hereof. SECTION 7. Public Hearing. The City Council hereby fixes 7:00 p.m., or as soon thereafter as practicable, on Wednesday, March 3, 2021, at the Bing Wong Auditorium of the Norman F. Feldheym Public Library at 555 W. 6th Street, San Bernardino, California, 92418, as the time and place when and where the City Council will conduct a public hearing on the proposed annexation of the said territory to the CFD No. 2019-1. SECTION 8. Notice of Public Hearing. The City Clerk is hereby directed to publish, or cause to be published, a notice of said public hearing, in substantially the form attached hereto as Exhibit F, one time in a newspaper of general circulation published in the area of CFD No. 2019- 1. The publication of said notice shall be completed at least seven days prior to the date herein fixed for said hearing. Said notice shall contain the information prescribed by Section 53322 of the Act. SECTION 9. Mailing Ballots. In anticipation of its action on Wednesday March 3, 2021 to call the election on the annexation for the same date, pursuant to waiver of election time 27.a Packet Pg. 934 Attachment: Attachment 1 - Resolution No. 2021-17 (7041 : Declaring Intent to Annex Territory: CFD No. 2019-1 (Maintenance Services): Resolution No. 2021-17 limits from the landowners, the City Council hereby authorizes the City Clerk to mail to each landowner in the territory proposed to be annexed to the CFD No. 2019-1 a ballot in substantially the form set forth in Exhibit G hereto. A copy of the waiver and consent form signed by the property owner is attached hereto as Exhibit E and incorporated herein by this reference. SECTION 10. That the City Council finds this Resolution is not subject to the California Environmental Quality Act (CEQA) in that the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty, as in this case, that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. SECTION 11. Severability. If any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications, and to this end the provisions of this Resolution are declared to be severable. SECTION 12. Effective Date. This Resolution shall become effective immediately. APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this 20th day of January 2021. John Valdivia, Mayor City of San Bernardino Attest: Genoveva Rocha, CMC, City Clerk Approved as to form: Sonia Carvalho, City Attorney 27.a Packet Pg. 935 Attachment: Attachment 1 - Resolution No. 2021-17 (7041 : Declaring Intent to Annex Territory: CFD No. 2019-1 (Maintenance Services): Resolution No. 2021-17 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, City Clerk, hereby certify that the attached is a true copy of Resolution No. 2021-17, adopted at a regular meeting held on the 20th day of January 2021 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ REYNOSO _____ _____ _______ _______ CALVIN _____ _____ _______ _______ ALEXANDER _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this 21st day of January 2021. Genoveva Rocha, CMC, City Clerk 27.a Packet Pg. 936 Attachment: Attachment 1 - Resolution No. 2021-17 (7041 : Declaring Intent to Annex Territory: CFD No. 2019-1 (Maintenance Services): EXHIBIT A   DESCRIPTION OF PROPOSED TERRITORY TO BE ANNEXED The City of San Bernardino Community Facilities District No. 2019-1 (Maintenance Services) (the “CFD No. 2019-1”) Annexation No. 7 is currently comprised of one parcel, located within the City boundaries. The property is identified by the following San Bernardino County Assessor's Parcel Numbers (APN). APN Owner Name 0281-161-48 ICO Fund VI, LLC     27.b Packet Pg. 937 Attachment: Attachment 2 - Resolution No. 2021-17; Exhibit A - Description of Territory (7041 : Declaring Intent to Annex Territory: CFD No. EXHIBIT B DESCRIPTION OF AUTHORIZED SERVICES The services which may be funded with proceeds of the special tax of CFD No. 2019-1, as provided by Section 53313 of the Act, will include all costs attributable to maintaining, servicing, cleaning, repairing and/or replacing landscaped areas (may include reserves for replacement) in public street right-of-ways, public landscaping, public open spaces and other similar landscaped areas officially dedicated for public use. These services including the following: (a) maintenance and lighting of parks, parkways, streets, roads and open space, which maintenance and lighting services may include, without limitation, furnishing of electrical power to street lights and traffic signals; repair and replacement of damaged or inoperative light bulbs, fixtures and standards; maintenance (including irrigation and replacement) of landscaping vegetation situated on or adjacent to parks, parkways, streets, roads and open space; maintenance and repair of irrigation facilities; maintenance of public signage; graffiti removal from and maintenance and repair of public structures situated on parks, parkways, streets, roads and open space; maintenance and repair of playground or recreation program equipment or facilities situated on any park; and (b) maintenance and operation of water quality improvements which include storm drainage and flood protection facilities, including, without limitation, drainage inlets, catch basin inserts, infiltration basins, flood control channels, fossil fuel filters, and similar facilities. Maintenance services may include but is not limited to the repair, removal or replacement of all or part of any of the water quality improvements, fossil fuel filters within the public right-of-way including the removal of petroleum hydrocarbons and other pollutants from water runoff, or appurtenant facilities, clearing of inlets and outlets; erosion repairs; and cleanup to improvements, and other items necessary for the maintenance, servicing; or both of the water quality basin improvements within flood control channel improvements; and (c) public street sweeping, on the segments of the arterials within the boundaries of CFD No. 2019-1; as well as local roads within residential subdivisions located within CFD No. 2019-1; and any portions adjacent to the properties within CFD No. 2019-1. In addition to payment of the cost and expense of the forgoing services, proceeds of the special tax may be expended to pay “Administrative Expenses,” as said term is defined in Exhibit B to this resolution of intention. The above services shall be limited to those provided within the boundaries of CFD No. 2019-1 or for the benefit of the properties within the boundaries of CFD No. 2019-1, as the boundary is expanded from time to time by anticipated annexations, and said services may be financed by proceeds of the special tax of CFD No. 2019-1 only to the extent that they are in addition to those provided in the territory of CFD No. 2019-1 before CFD No. 2019-1 was created. 27.c Packet Pg. 938 Attachment: Attachment 3 - Resolution No. 2021-17; Exhibit B - Description of Authorized Services (7041 : Declaring Intent to Annex Territory: EXHIBIT C City of San Bernardino 1  Community Facilities District No. 2019‐1 (Maintenance Services)   RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX FOR   COMMUNITY FACILITIES DISTRICT NO. 2019‐1 (MAINTENANCE SERVICES)  OF THE CITY OF SAN BERNARDINO    A Special Tax (the “Special Tax”) shall be levied on and collected from each Assessor’s Parcel (defined  below) in Community Facilities District No. 2019‐1 (Maintenance Services) (the “CFD No. 2019‐1” or  “CFD”; defined below), in each Fiscal Year, (defined below), commencing in the Fiscal Year beginning July  1, 2019, in an amount determined by the City Council of the City of San Bernardino, acting in its capacity  as the legislative body of CFD No. 2019‐1, by applying the rate and method of apportionment set forth  below.  All of the real property in CFD No. 2019‐1, unless exempted by law or by the provisions herein,  shall be taxed to the extent and in the manner provided herein.    A. DEFINITIONS    “Acre” or “Acreage” means the land area of an Assessor’s Parcel as shown on any Assessor’s Parcel  Map, or if the land area is not shown on the Assessor’s Parcel Map, the land area as shown on the  applicable Final Map, or if the area is not shown on the applicable Final Map, the land area shall be  calculated by the Administrator.    “Administrative Expenses” means the actual or reasonably estimated costs directly related to the  formation, annexation, and administration of CFD No. 2019‐1 including, but not limited to: the costs  of computing the Special Taxes and preparing the annual Special Tax collection schedules (whether  by the City or designee thereof or both); the costs to the City, CFD No. 2019‐1, or any designee thereof  associated with fulfilling the CFD No. 2019‐1 disclosure requirements; the costs associated with  responding to public inquiries regarding the Special Taxes; the costs of the City, CFD No. 2019‐1 or  any designee thereof related to an appeal of the Special Tax; and the City's annual administration fees  including payment of a proportional share of salaries and benefits of any City employees and City  overhead whose duties are related to the administration and third party expenses.  Administrative  Expenses shall also include amounts estimated or advanced by the City or CFD No. 2019‐1 for any  other administrative purposes of CFD No. 2019‐1, including attorney's fees and other costs related to  commencing and pursuing to completion any foreclosure of delinquent Special Taxes.    “Administrator” means the City Manager of the City of San Bernardino, or his or her designee.    “Approved Property” means all Assessor’s Parcels of Taxable Property that are included in a Final  Map that was recorded prior to the March 1 preceding the Fiscal Year in which the Special Tax is being  levied, and that have not been issued a building permit on or prior to the March 1 preceding the Fiscal  year in which the special tax is being levied.    “Assessor’s Parcel” means a lot or parcel of land that is identifiable by an Assessor’s Parcel Number  by the County Assessor of the County of San Bernardino.    “Assessor’s Parcel Map” means an official map of the Assessor of the County designating parcels by  Assessor’s Parcel Number.    “Assessor’s Parcel Number” means that identification number assigned to a parcel by the County  Assessor of the County.    27.d Packet Pg. 939 Attachment: Attachment 4 - Resolution No. 2021-17; Exhibit C - Rate and Method of Apportionment (7041 : Declaring Intent to Annex Territory: City of San Bernardino 2  Community Facilities District No. 2019‐1 (Maintenance Services)   “Building Square Footage” or “BSF” means the floor area square footage reflected on the original  construction building permit issued for construction of a building of Non‐Residential Property and any  Building Square Footage subsequently added to a building of such Taxable Property after issuance of  a building permit for expansion or renovation of such building.    “Calendar Year” means the period commencing January 1 of any year and ending the following  December 31.     “CFD” or “CFD No. 2019‐1” means the City of San Bernardino Community Facilities District No. 2019‐ 1 (Maintenance Services).    “City” means the City of San Bernardino.     “Contingent Special Tax B Requirement” means that amount required in any Fiscal Year, if the POA  is unable to maintain the Service(s) to: (i) pay the costs of Services incurred or otherwise payable in  the Calendar Year commencing in such  Fiscal  Year;  (ii)  fund  an  operating  reserve  for  the  costs   of  Services  as determined by the Administrator; less a credit for funds available to reduce the annual  Special Tax B (Contingent) levy as determined by the Administrator.    “County” means the County of San Bernardino.    “Developed Property” means all Assessor’s Parcels of Taxable Property for which a building permit  for new construction has been issued on or prior to March 1 preceding the Fiscal Year in which the  Special Tax is being levied.    “Exempt Property” means all Assessors’ Parcels designated as being exempt from the Special Tax as  provided for in Section G.     “Final Map” means a subdivision of property by recordation of a final map, parcel map, or lot line  adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.)  or recordation of a condominium plan pursuant to California Civil Code 1352 that creates individual  lots for which building permits may be issued without further subdivision.      “Fiscal Year” means the period from and including July 1st of any year to and including the following  June 30th.    “Land Use Category” or “LUC” means any of the categories contained in Section B hereof to which an  Assessor’s Parcel is assigned consistent with the land use approvals that have been received or  proposed for the Assessor’s Parcel as of March 1 preceding the Fiscal Year in which the Special Tax is  being levied.    “Maximum Special Tax” means either Maximum Special Tax A and/or Maximum Special Tax B  (Contingent), as applicable.    “Maximum Special Tax A” means the Maximum Special Tax A, as determined in accordance with  Section C below that can be levied in any Fiscal Year on any Assessor's Parcel of Taxable Property  within CFD No. 2019‐1.    27.d Packet Pg. 940 Attachment: Attachment 4 - Resolution No. 2021-17; Exhibit C - Rate and Method of Apportionment (7041 : Declaring Intent to Annex Territory: City of San Bernardino 3  Community Facilities District No. 2019‐1 (Maintenance Services)   “Maximum Special Tax B (Contingent)” means the Maximum Special Tax B (Contingent), as  determined in accordance with Section C below that can be levied in any Fiscal Year on any Assessor's  Parcel of Taxable Property within CFD No. 2019‐1.    “Multi‐Family Residential Property” means any Assessor’s Parcel of residential property that consists  of a building or buildings comprised of attached Residential Units sharing at least one common wall  with another unit.   “Non‐Residential Property” or “NR” means all Assessor's Parcels of Taxable Property for which a  building permit(s) was issued for a non‐residential use.  The Administrator shall make the  determination if an Assessor’s Parcel is Non‐Residential Property.   “Property Owner’s Association” or “POA” means the property owner’s association or homeowner’s   association established to maintain certain landscaping within a Tax Zone.    “Proportionately” means for Taxable Property that is: (i) Developed Property, that the ratio of the  actual Special Tax levy to the Maximum Special Tax is the same for all Parcels of Developed Property  with the same Tax Zone, (ii) Approved Property, that the ratio of the actual Special Tax levy to the  Maximum Special Tax is the same for all Parcels of Approved Property with the same Tax Zone, and  (iii) Undeveloped Property that the ratio of the actual Special Tax levy per acre to the Maximum  Special Tax per acre is the same for all Parcels of Undeveloped Property with the same Tax Zone.    “Residential Unit” or "RU" means a residential unit that is used or intended to be used as a domicile  by one or more persons, as determined by the Administrator.    “Residential Property” means all Assessor’s Parcels of Taxable Property upon which completed  Residential Units have been constructed or for which building permits have been or may be issued for  purposes of constructing one or more Residential Units.    “Service(s)” means services permitted under the Mello‐Roos Community Facilities Act of 1982  including, without limitation, those services authorized to be funded by CFD No. 2019‐1 as set forth  in the documents adopted by the City Council at the time the CFD was formed.     “Single Family Residential Property” means any residential property other than Multi‐Family  Residential Property on an Assessor’s Parcel.  “Special Tax(es)” means the Special Tax A and/or Special Tax B (Contingent) to be levied in each Fiscal  Year on each Assessor’s Parcel of Taxable Property.    “Special Tax A” means the annual special tax to be levied in each Fiscal Year on each Assessor’s Parcel  of Taxable Property to fund the Special Tax A Requirement.    "Special Tax A Requirement" means for each Tax Zone, that amount to be collected in any Fiscal Year  to pay for certain costs as required to meet the needs for such Tax Zone of CFD No. 2019‐1 in both  the current Fiscal Year and the next Fiscal Year. The costs to be covered shall be the direct costs for  maintenance services including but not limited to (i) maintenance and lighting of parks, parkways,  streets, roads and open space, (ii) maintenance and operation of water quality improvements, (iii)  public street sweeping, (iv) fund an operating reserve for the costs of Services as determined by the  Administrator, and (v) Administrative Expenses. Under no circumstances shall the Special Tax A  Requirement include funds for Bonds.  27.d Packet Pg. 941 Attachment: Attachment 4 - Resolution No. 2021-17; Exhibit C - Rate and Method of Apportionment (7041 : Declaring Intent to Annex Territory: City of San Bernardino 4  Community Facilities District No. 2019‐1 (Maintenance Services)   “Special Tax B (Contingent)” means the Special Tax B (Contingent) to be levied in each Fiscal Year on  each Assessor’s Parcel of Taxable Property to fund the Contingent Special Tax B Requirement, if  required.    "Taxable Property" means all Assessor’s Parcels within CFD No. 2019‐1, which are not Exempt  Property.    “Taxable Unit” means a Residential Unit, Building Square Footage, or an Acre. "Tax Zone" means a mutually exclusive geographic area, within which particular Special Tax rates may  be levied pursuant to this Rate and Method of Apportionment of Special Tax.  Appendix C identifies  the Tax Zone in CFD No. 2019‐1 at formation; additional Tax Zones may be created when property is  annexed into the CFD.    "Tax Zone 1" means the specific geographic area identified on the CFD Boundary Map as Tax Zone 1.    "Tract(s)" means an area of land; i) within a subdivision identified by a particular tract number on a  Final Map, ii) identified within a Parcel Map; or iii) identified within lot line adjustment approved for  subdivision.    “Undeveloped Property” means, for each Fiscal Year, all Taxable Property not classified as Developed  Property or Approved Property.    B. ASSIGNMENT TO LAND USE CATEGORIES  For each Fiscal Year, all Assessor’s Parcels of Taxable Property within CFD No. 2019‐1 shall be classified  as Developed Property, Approved Property, or Undeveloped Property, and shall be subject to the levy  of Special Taxes as determined pursuant to Sections C and D below. Assessor’s Parcels of Developed  Property and Approved Property shall be classified as either Residential Property or Non‐Residential  Property.  Residential Property shall be further classified as Single Family Residential Property or  Multi‐Family Residential Property and the number of Residential Units shall be determined by the  Administrator.    C. MAXIMUM SPECIAL TAX RATES  For purposes of determining the applicable Maximum Special Tax for Assessor’s Parcels of Developed  Property and Approved Property which are classified as Residential Property, all such Assessor’s  Parcels shall be assigned the number of Residential Unit(s) constructed or to be constructed thereon  as specified in or shown on the building permit(s) issued or Final Map as determined by the  Administrator.  For Parcels of undeveloped property zoned for development of single family attached  or multi‐family units, the number of Residential Units shall be determined by referencing the  condominium plan, apartment plan, site plan or other development plan, or by assigning the  maximum allowable units permitted based on the underlying zoning for the Parcel.  Once a single  family attached or multi‐family building or buildings have been built on an Assessor's Parcel, the  Administrator shall determine the actual number of Residential Units contained within the building  or buildings, and the Special Tax A levied against the Parcel in the next Fiscal Year shall be calculated  by multiplying the actual number of Residential Units by the Maximum Special Tax per Residential  Unit identified for the Tract below or as included in Appendix A as each Annexation occurs.  For purposes of determining the applicable Maximum Special Tax for Assessor’s Parcels of Developed  Property and Approved Property which are classified as Non‐Residential Property, all such Assessor’s  27.d Packet Pg. 942 Attachment: Attachment 4 - Resolution No. 2021-17; Exhibit C - Rate and Method of Apportionment (7041 : Declaring Intent to Annex Territory: City of San Bernardino 5  Community Facilities District No. 2019‐1 (Maintenance Services)   Parcels shall be assigned the number of Building Square Footage or Acres as shown on the Final Map  as determined by the Administrator.  Once the Administrator determines the actual number of  Building Square Footage or Acres for the Assessor’s Parcels, the Special Tax A levied against the  Assessor’s Parcel in the next Fiscal Year shall be calculated by multiplying the number of Building  Square Footage or Acres by the Maximum Special Tax per Taxable Unit identified for the Tax Zone  below or as included in Appendix A as each Annexation occurs.  1.  Special Tax A  a. Developed Property  (i) Maximum Special Tax A   The Maximum Special Tax A for each Assessor’s Parcel of Developed Property shall be specific  to each Tax Zone within the CFD.  When additional property is annexed into CFD No. 2019‐1,  the rate and method adopted for the annexed property shall reflect the Maximum Special Tax  A for the Tax Zones annexed and included in Appendix A.  The Maximum Special Tax A for  Developed Property for Fiscal Year 2019‐2020 within Tax Zone 1 is identified in Table 1 below:  TABLE 1  MAXIMUM SPECIAL TAX A RATES  DEVELOPED PROPERTY    Tax  Zone  Tract Land Use Category  Taxable  Unit  Maximum  Special Tax A  1 TR 17170 Single Family Residential Property RU $961    (ii) Increase in the Maximum Special Tax A   On each July 1, commencing on July 1, 2020 the Maximum Special Tax A for Developed  Property shall increase by i) the percentage increase in the Consumer Price Index (All Items)  for Los Angeles ‐ Riverside ‐ Orange County (1982‐84 = 100) since the beginning of the  preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater.    (iii) Multiple Land Use Categories   In some instances an Assessor's Parcel of Developed Property may contain more than one  Land Use Category.  The Maximum Special Tax A that can be levied on an Assessor's Parcel  shall be the sum of the Maximum Special Tax A that can be levied for each Land Use Category  located on that Assessor's Parcel.  For an Assessor's Parcel that contains more than one land  use, the Acreage of such Assessor's Parcel shall be allocated to each type of property based  on the amount of Acreage designated for each land use as determined by reference to the  site plan approved for such Assessor's Parcel.  The Administrator's allocation to each type of  property shall be final.    b.  Approved Property  The Maximum Special Tax A for each Assessor’s Parcel of Approved  Property shall be specific to  each Tax Zone within the CFD.  When additional property is annexed into CFD No. 2019‐1, the rate  and method adopted for the annexed property shall reflect the Maximum Special Tax A for the  Tax Zone annexed and included in Appendix A.  The Maximum Special Tax A for Approved property  Fiscal Year 2019‐20 within Tax Zone 1 is identified in Table 2 below:  27.d Packet Pg. 943 Attachment: Attachment 4 - Resolution No. 2021-17; Exhibit C - Rate and Method of Apportionment (7041 : Declaring Intent to Annex Territory: City of San Bernardino 6  Community Facilities District No. 2019‐1 (Maintenance Services)   TABLE 2  MAXIMUM SPECIAL TAX A RATES  APPROVED PROPERTY    Tax  Zone  Tract Land Use Category  Taxable  Unit  Maximum  Special Tax A  1 TR 17170 Single Family Residential RU $961    On each July 1, commencing on July 1, 2020 the Maximum Special Tax A for Approved Property  shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Los Angeles  ‐ Riverside ‐ Orange County (1982‐84 = 100) since the beginning of the preceding Fiscal Year, or ii)  by two percent (2.0%), whichever is greater.    c.  Undeveloped Property  The Maximum Special Tax A for each Assessor’s Parcel of Undeveloped Property shall be specific  to each Tax Zone within the CFD.  When additional property is annexed into CFD No. 2019‐1, the  rate and method adopted for the annexed property shall reflect the Maximum Special Tax A for  the Tax Zone annexed and included in Appendix A.  The Maximum Special Tax A for Undeveloped  Property for Fiscal Year 2019‐20 within Tax Zone 1 is identified in Table 3 below:  TABLE 3  MAXIMUM SPECIAL TAX A RATES  UNDEVELOPED PROPERTY    Tax Zone Tracts Taxable Unit Maximum Special Tax A  1 TR 17170 Acre $4,338    On each July 1, commencing on July 1, 2020 the Maximum Special Tax A for Undeveloped Property  shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Los Angeles  ‐ Riverside ‐ Orange County (1982‐84 = 100) since the beginning of the preceding Fiscal Year, or ii)  by two percent (2.0%), whichever is greater.    2. Special Tax B (Contingent)  The City Council shall levy Special Tax B (Contingent) only in the event the POA defaults in its bligation  to maintain the Contingent Services, which default shall be deemed to have occurred, as determined  by the Administrator, in each of the following circumstances:    (a) The POA files for bankruptcy;  (b) The POA is dissolved;  (c) The POA ceases to levy annual assessments for the Contingent Services; or  (d) The POA fails to provide the Contingent Services at the same level as the City provides similar  services and maintains similar improvements throughout the City and within ninety (90) days  after written notice from the City, or such longer period permitted by the City Manager, fails  to remedy the deficiency to the reasonable satisfaction of the City Council.    a. Developed Property     (i) Maximum Special Tax B (Contingent)  27.d Packet Pg. 944 Attachment: Attachment 4 - Resolution No. 2021-17; Exhibit C - Rate and Method of Apportionment (7041 : Declaring Intent to Annex Territory: City of San Bernardino 7  Community Facilities District No. 2019‐1 (Maintenance Services)    The Maximum Special Tax B (Contingent) for each Assessor’s Parcel of Taxable Property is  shown in Table 4 and shall be specific to each Tax Zone within the CFD.  When additional  property is annexed into CFD No. 2019‐1, the rate and method adopted for the annexed  property shall reflect the Maximum Special Tax B (Contingent) for each Tax Zones annexed  and included in Appendix A.  The Maximum Special Tax B (Contingent) for Fiscal Year 2019‐20  within Tax Zone 1 is identified in Table 4 below:  TABLE 4  MAXIMUM SPECIAL TAX B (CONTINGENT) RATES  DEVELOPED PROPERTY    Tax  Zone  Tract Land Use Category  Taxable  Unit  Maximum Special   Tax B (Contingent)  1 TR 17170 Single Family Residential Property RU $0    (ii) Increase in the Maximum Special Tax B (Contingent)   On each July 1, commencing on July 1, 2020 the Maximum Special Tax B (Contingent) for  Developed Property shall increase by i) the percentage increase in the Consumer Price Index  (All Items) for Los Angeles ‐ Riverside ‐ Orange County (1982‐84 = 100) since the beginning of  the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater.    (iii) Multiple Land Use Categories   In some instances an Assessor's Parcel of Developed Property may contain more than one  Land Use Category.  The Maximum Special Tax B (Contingent) that can be levied on an  Assessor's Parcel shall be the sum of the Maximum Special Tax B (Contingent) that can be  levied for each Land Use Category located on that Assessor's Parcel.  For an Assessor's Parcel  that contains more than one land use, the Acreage of such Assessor's Parcel shall be allocated  to each type of property based on the amount of Acreage designated for each land use as  determined by reference to the site plan approved for such Assessor's Parcel.  The  Administrator's allocation to each type of property shall be final.    b.  Approved Property  The Maximum Special Tax B (Contingent) for each Assessor’s Parcel of Taxable Property is shown  in Table 5 and shall be specific to each Tax Zone within the CFD.  When additional property is  annexed into CFD No. 2019‐1, the rate and method adopted for the annexed property shall reflect  the Maximum Special Tax B (Contingent) for the Tax Zone annexed and included in Appendix A.   The Maximum Special Tax B (Contingent) for Fiscal Year 2019‐20 within the Tax Zone is identified  in Table 5 below:  TABLE 5  MAXIMUM SPECIAL TAX B (CONTINGENT) RATES  APPROVED PROPERTY    Tax  Zone  Tract Land Use Category  Taxable  Unit  Maximum Special   Tax B (Contingent)  1 TR 17170 Single Family Residential Property RU $0    On each July 1, commencing on July 1, 2020 the Maximum Special Tax B (Contingent) for Approved  Property shall increase by i) the percentage increase in the Consumer Price Index (All Items) for  27.d Packet Pg. 945 Attachment: Attachment 4 - Resolution No. 2021-17; Exhibit C - Rate and Method of Apportionment (7041 : Declaring Intent to Annex Territory: City of San Bernardino 8  Community Facilities District No. 2019‐1 (Maintenance Services)   Los Angeles ‐ Riverside ‐ Orange County (1982‐84 = 100) since the beginning of the preceding  Fiscal Year, or ii) by two percent (2.0%), whichever is greater.    c.  Undeveloped Property  The Maximum Special Tax B (Contingent) for each Assessor’s Parcel of Taxable Property is shown  in Table 6 and shall be specific to each Tax Zone within the CFD.  When additional property is  annexed into CFD No. 2019‐1, the rate and method adopted for the annexed property shall reflect  the Maximum Special Tax B (Contingent) for the Tax Zone annexed and included in Appendix A.   The Maximum Special Tax B (Contingent) for Fiscal Year 2019‐20 within the Tax Zone is identified  in Table 6 below:  TABLE 6  MAXIMUM SPECIAL TAX B (CONTINGENT) RATES  UNDEVELOPED PROPERTY    Tax Zone  Tracts Taxable Unit  Maximum Special   Tax B (Contingent)  1 TR 17170 Acre $0    On each July 1, commencing on July 1, 2020 the Maximum Special Tax B (Contingent) for Undeveloped  Property shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Los  Angeles ‐ Riverside ‐ Orange County (1982‐84 = 100) since the beginning of the preceding Fiscal Year,  or ii) by two percent (2.0%), whichever is greater.    D. METHOD OF APPORTIONMENT OF ANNUAL SPECIAL TAX  1.  Special Tax A  Commencing with Fiscal Year 2019‐20 and for each following Fiscal Year, the Council shall determine  the Special Tax A Requirement and shall levy the Special Tax A on all Assessor’s Parcels of Taxable  Property until the aggregate amount of Special Tax A equals the Special Tax A Requirement for each  Tax Zone.  The Special Tax A shall be levied for each Fiscal Year as follows:    First: The Special Tax A shall be levied Proportionately on all Assessor’s Parcels of Developed  Property within each Tax Zone up to 100% of the applicable Maximum Special Tax to satisfy the Special  Tax A Requirement for such Tax Zone;    Second: If additional moneys are needed to satisfy the Special Tax A Requirement for a Tax Zone  after the first step has been completed, the Special Tax A shall be levied Proportionately on each  Parcel of Approved Property within such Tax Zone up to 100% of the Maximum Special Tax A for  Approved Property;    Third: If additional monies are needed to satisfy the Special Tax A Requirement for a Tax Zone  after the first two steps has been completed, the Special Tax A shall be levied Proportionately on all  Assessor’s Parcels of Undeveloped Property within such Tax Zone up to 100% of the Maximum Special  Tax A for Undeveloped Property.  2.  Special Tax B (Contingent)  Commencing with Fiscal Year in which Special Tax B (Contingent) is authorized to be levied and for  each following Fiscal Year, the City Council shall determine the Contingent Special Tax B (Contingent)  Requirement for each Tax Zone, if any, and shall levy the Special Tax on all Assessor’s Parcels of  27.d Packet Pg. 946 Attachment: Attachment 4 - Resolution No. 2021-17; Exhibit C - Rate and Method of Apportionment (7041 : Declaring Intent to Annex Territory: City of San Bernardino 9  Community Facilities District No. 2019‐1 (Maintenance Services)   Taxable Property within such Tax Zone until the aggregate amount of Special Tax B (Contingent) equals  the Special Tax B ( Contingent) Requirement for such Tax Zone.  The Special Tax B (Contingent) Shall  be levied for each Fiscal Year as follows:    First: The Special Tax shall be levied Proportionately on all Assessor’s Parcels of Developed  Property for a Tax Zone up to 100% of the applicable Maximum Special Tax B (Contingent) to satisfy  the Contingent Special Tax B Requirement;    Second: If additional moneys are needed to satisfy the Contingent Special Tax B Requirement after  the first step has been completed, the Special Tax B (Contingent) shall be levied Proportionately on  each Parcel of Approved Property within such Tax Zone up to 100% of the Maximum Special Tax B  (Contingent) for Approved Property;    Third: If additional monies are needed to satisfy the Contingent Special Tax B Requirement after  the first two steps has been completed, the Special Tax B (Contingent) shall be levied Proportionately  on all Assessor’s Parcels of Undeveloped Property within such Tax Zone up to 100% of the Maximum  Special Tax B (Contingent) for Undeveloped Property.      E. FUTURE ANNEXATIONS  It is anticipated that additional properties will be annexed to CFD No. 2019‐1 from time to time.  As  each annexation is proposed, an analysis will be prepared to determine the annual cost for providing  Services.  Based on this analysis, the property to be annexed, pursuant to California Government Code  section 53339 et seq. will be assigned to the appropriate Maximum Special Tax rate for the Tax Zone  when annexed and included in Appendix A.    F. DURATION OF SPECIAL TAX   For each Fiscal Year, the Special Tax A shall be levied as long as the Services are being provided.  For each Fiscal Year, the Special Tax B (Contingent) shall be levied as long as the Contingent Services  are being provided.    G. EXEMPTIONS    The City shall classify as Exempt Property within CFD No. 2019‐1, any Assessor’s Parcels; (i) which are  owned by, irrevocably offered for dedication, encumbered by or restricted in use by any public entity;  (ii) with public or utility easements making impractical their utilization for other than the purposes set  forth in the easement; (iii) which are privately owned but are encumbered by or restricted solely for  public uses; or (iv) which is in use in the performance of a public function as determined by the  Administrator.     H. APPEALS   Any property owner claiming that the amount or application of the Special Taxes are not correct may  file a written notice of appeal with the City not later than twelve months after having paid the first  installment of the Special Tax that is disputed.  A representative(s) of CFD No. 2019‐1 shall promptly  review the appeal, and if necessary, meet with the property owner, consider written and oral evidence  regarding the amount of the Special Tax, and rule on the appeal.  If the representative’s decision  requires that the Special Tax for an Assessor’s Parcel be modified or changed in favor of the property  owner, a cash refund shall not be made, but an adjustment shall be made to the Special Tax on that  Assessor’s Parcel in the subsequent Fiscal Year(s).    27.d Packet Pg. 947 Attachment: Attachment 4 - Resolution No. 2021-17; Exhibit C - Rate and Method of Apportionment (7041 : Declaring Intent to Annex Territory: City of San Bernardino 10  Community Facilities District No. 2019‐1 (Maintenance Services)      I. MANNER OF COLLECTION   The Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem  property taxes, provided, however, that CFD No. 2019‐1 may collect the Special Tax at a different time  or in a different manner if necessary to meet its financial obligations.     27.d Packet Pg. 948 Attachment: Attachment 4 - Resolution No. 2021-17; Exhibit C - Rate and Method of Apportionment (7041 : Declaring Intent to Annex Territory: City of San Bernardino 11  Community Facilities District No. 2019‐1 (Maintenance Services)   APPENDIX A    CITY OF SAN BERNARDINO  COMMUNITY FACILITIES DISTRICT NO. 2019‐1 (MAINTENANCE SERVICES)                  COST ESTIMATE  Special Tax A Services ‐ The estimate breaks down the costs of providing one year's maintenance  services for Fiscal Year 2021‐22.  These services are being funded by the levy of Special Tax A for  Community Facilities District No. 2019‐1.  TAX ZONE 8   TR 20293    Item Description Estimated Cost  1 Landscaping $2,042  2 Lighting $300  3 Streets $1,450  4 Parks $12,350  5 Graffiti $530  6 Reserves $245  7 Admin $1,667  Total  $18,584    Special Tax B Contingent Services – The estimate in the table below breaks down the costs of  providing one year’s contingent maintenance services for Fiscal Year 2021‐22. If necessary, these  services will be funded by the levy of Special Tax B (Contingent) for Community Facilities District  No. 2019‐1 Tax Zone 8.   TAX ZONE 8 (CONTINGENT SERVICES)  TR 20293    Item Description Estimated Cost  1 Drainage $1,485  2 Reserves $149  3 Admin $500  Total  $2,134    TAX ZONE 8  FY 2021‐22 MAXIMUM SPECIAL TAX RATES  DEVELOPED PROPERTY AND APPROVED PROPERTY     Land Use   Category  Taxable   Unit  Maximum   Special Tax A  Maximum   Special Tax B  Non‐Residential Property Acre $2,913 $334  27.d Packet Pg. 949 Attachment: Attachment 4 - Resolution No. 2021-17; Exhibit C - Rate and Method of Apportionment (7041 : Declaring Intent to Annex Territory: City of San Bernardino 12  Community Facilities District No. 2019‐1 (Maintenance Services)   TAX ZONE 8  FY 2021‐22 MAXIMUM SPECIAL TAX RATES   UNDEVELOPED PROPERTY    Taxable   Unit  Maximum   Special Tax A  Maximum   Special Tax B  Acre $2,913 $334          27.d Packet Pg. 950 Attachment: Attachment 4 - Resolution No. 2021-17; Exhibit C - Rate and Method of Apportionment (7041 : Declaring Intent to Annex Territory: City of San Bernardino 13  Community Facilities District No. 2019‐1 (Maintenance Services)   TAX ZONE SUMMARY      Annexation  Tax  Zone  Tract  APN  Fiscal  Year  Maximum  Special Tax A  Maximum  Special Tax B    Subdivider  Original 1 17170 2019‐20 $961 / RU $0 / RU Santiago Communities, Inc.  1 2 17329 2019‐20 $473 / RU $0 / RU JEC Enterprises, Inc.  2 3 PM 19814 2020‐21 $608 / Acre $0 / Acre GWS #4 Development, LLC  3 4 0266‐041‐39 2019‐20 $1,136 / Acre $0 / Acre Devore Storage Facility, LLC  4 5 TR 20006 2020‐21 $344 / RU $57 / RU TH Rancho Palma, LLC  5 6 PM 19701 2020‐21 $1,895 / Acre $528 / Acre Strata Palma, LLC  6 7 PM 20112 2020‐21 $3,197 / Acre $0 / Acre San Bernardino Medical  Center LLC  7 8 TR 20293 2021‐22 $2,913 / Acre $334 / Acre ICO Fund VI, LLC      ESCALATION OF MAXIMUM SPECIAL TAXES  On each July 1, commencing on July 1, 2020 the Maximum Special Tax shall increase by i) the  percentage increase in the Consumer Price Index (All Items) for Los Angeles ‐ Riverside ‐ Orange  County (1982‐84 = 100) since the beginning of the preceding Fiscal Year, or ii) by two percent  (2.0%), whichever is greater.  27.d Packet Pg. 951 Attachment: Attachment 4 - Resolution No. 2021-17; Exhibit C - Rate and Method of Apportionment (7041 : Declaring Intent to Annex Territory: City of San Bernardino 14  Community Facilities District No. 2019‐1 (Maintenance Services)   APPENDIX B    CITY OF SAN BERNARDINO  COMMUNITY FACILITIES DISTRICT NO. 2019‐1 (MAINTENANCE SERVICES)           DESCRIPTION OF AUTHORIZED SERVICES    The services which may be funded with proceeds of the special tax of CFD No. 2019‐1, as provided by  Section 53313 of the Act, will include all costs attributable to maintaining, servicing, cleaning, repairing  and/or replacing landscaped areas (may include reserves for replacement) in public street right‐of‐ways,  public landscaping, public open spaces and other similar landscaped areas officially dedicated for public  use. These services including the following:  (a)    maintenance and lighting of parks, parkways, streets, roads and open space, which  maintenance and lighting services may include, without limitation, furnishing of electrical power to street  lights and traffic signals; repair and replacement of damaged or inoperative light bulbs, fixtures and  standards; maintenance (including irrigation and replacement) of landscaping vegetation situated on or  adjacent to parks, parkways, streets, roads and open space; maintenance and repair of irrigation facilities;  maintenance of public signage; graffiti removal from and maintenance and repair of public structures  situated on parks, parkways, streets, roads and open space; maintenance and repair of playground or  recreation program equipment or facilities situated on any park; and    (b)  maintenance and operation of water quality improvements which include storm drainage  and flood protection facilities, including, without limitation, drainage inlets, catch basin inserts, infiltration  basins, flood control channels, fossil fuel filters, and similar facilities.  Maintenance services may include  but is not limited to the repair, removal or replacement of all or part of any of the water quality  improvements, fossil fuel filters within the public right‐of‐way including the removal of petroleum  hydrocarbons and other pollutants from water runoff, or appurtenant facilities, clearing of inlets and  outlets; erosion repairs; and cleanup to improvements, and other items necessary for the maintenance,  servicing; or both of the water quality basin improvements within flood control channel improvements;  and    (c)  public street sweeping, on the segments of the arterials within the boundaries of CFD No.  2019‐1; as well as local roads within residential subdivisions located within CFD No. 2019‐1; and any  portions adjacent to the properties within CFD No. 2019‐1; and    In addition to payment of the cost and expense of the forgoing services, proceeds of the special tax may  be expended to pay “Administrative Expenses,” as said term is defined in the Rate and Method of  Apportionment.   The above services shall be limited to those provided within the boundaries of CFD No. 2019‐1 or for the  benefit of the properties within the boundaries of CFD No. 2019‐1, as the boundary is expanded from time  to time by anticipated annexations, and said services may be financed by proceeds of the special tax of  CFD No. 2019‐1 only to the extent that they are in addition to those provided in the territory of CFD No.  2019‐1 before CFD No. 2019‐1 was created.                27.d Packet Pg. 952 Attachment: Attachment 4 - Resolution No. 2021-17; Exhibit C - Rate and Method of Apportionment (7041 : Declaring Intent to Annex Territory: City of San Bernardino 15  Community Facilities District No. 2019‐1 (Maintenance Services)     APPENDIX C    CITY OF SAN BERNARDINO  COMMUNITY FACILITIES DISTRICT NO. 2019‐1 (MAINTENANCE SERVICES)  PROPOSED BOUNDARIES AND POTENTIAL ANNEXATION AREA BOUNDARIES    27.d Packet Pg. 953 Attachment: Attachment 4 - Resolution No. 2021-17; Exhibit C - Rate and Method of Apportionment (7041 : Declaring Intent to Annex Territory: 27.ePacket Pg. 954Attachment: Attachment 5 - Resolution No. 2021-17; Exhibit D - Annexation and Potential Annexation 27.ePacket Pg. 955Attachment: Attachment 5 - Resolution No. 2021-17; Exhibit D - Annexation and Potential Annexation 27.f Packet Pg. 956 Attachment: Attachment 6 - Resolution No. 2021-17; Exhibit E - Signed Petition, Waiver and Consent (7041 : Declaring Intent to Annex 27.f Packet Pg. 957 Attachment: Attachment 6 - Resolution No. 2021-17; Exhibit E - Signed Petition, Waiver and Consent (7041 : Declaring Intent to Annex DEVELOPMENT SERVICES~PUBLIC WORKS/ENGINEERINGCITY OF SAN BERNARDINOFORFROMTRACT No. 20293TENTATIVE TRACT MAPFERREE STREET & LAURELWOOD DRIVE4____ENGINEER'SENGINEER'SSEALINFORMATION0SCALE: 1" = 50'25 50 100EXHIBIT A27.fPacket Pg. 958Attachment: Attachment 6 - Resolution No. 2021-17; Exhibit E - Signed Petition, Waiver and Consent (7041 EXHIBIT B 27.f Packet Pg. 959 Attachment: Attachment 6 - Resolution No. 2021-17; Exhibit E - Signed Petition, Waiver and Consent (7041 : Declaring Intent to Annex Territory: NOTICE OF PUBLIC HEARING ON INTENTION TO ANNEX TERRITORY TO AN EXISTING COMMUNITY FACILITIES DISTRICT 2019-1 (MAINTENANCE SERVICES) (ANNEXATION NO. 7) NOTICE IS HEREBY GIVEN that the City Council of the City of San Bernardino on January 20, 2021 adopted its Resolution No. 2021-___, in which it declared its intention to annex territory to existing Community Facilities District No. 2019-1 (Maintenance Services) (the "CFD No. 2019-1"), and to levy a special tax to pay for certain safety services, all pursuant to the provisions of the Mello-Roos Community Facilities Act of 1982, Chapter 2.5, Part 1, Division 2, Title 5 of the California Government Code. The resolution describes the territory to be annexed and describes the rate and method of apportionment of the proposed special tax. No change in the tax levied in the existing CFD No. 2019-1 is proposed. NOTICE IS HEREBY FURTHER GIVEN that the City Council has fixed 7:00 p.m., or as soon thereafter as practicable, Wednesday, March 3, 2021 at the Bing Wong Auditorium of the Norman F. Feldheym Public Library at 555 W. 6th Street, San Bernardino, California, as the time and place when and where the City Council will conduct a public hearing on the annexation of territory to CFD No. 2019-1. At the hearing, the testimony of all interest persons for or against the annexation of the territory or the levying of the special taxes will be heard. If and to the extent participation in the March 3, 2021 meeting must occur by teleconference, videoconference, or other electronic means authorized by the Ralph M. Brown Act or an Executive Order of the Governor of California, the means and methods for participating the meeting shall be posted on the Agenda for said meeting, which shall be posted at least 72 hours prior to the meeting on the City of San Bernardino (www.sbcity.org), and outside of the Bing Wong Auditorium of the Norman F. Feldheym Public Library at 555 W. 6th Street, San Bernardino, California, 92418. A copy of the Agenda will be made available upon request to the San Bernardino City Clerk's office at 909-384-5002. DATED: ____________, 2021 _________________________________________ City Clerk of the City of San Bernardino PUB: _______________, 2021   27.g Packet Pg. 960 Attachment: Attachment 7 - Resolution No. 2021-17; Exhibit F - Notice of Public Hearing (7041 : Declaring Intent to Annex Territory: CFD No. EXHIBIT G CITY OF SAN BERNARDINO COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA COMMUNITY FACILITIES DISTRICT NO. 2019-1 (MAINTENANCE SERVICES) ANNEXATION NO. 7 (March 3, 2021) This ballot is for the use of the authorized representative of the following owner of land within Community Facilities District No. 2019-1 (Maintenance Services) (“CFD No. 2019-1”) of the City of San Bernardino: Name of Landowner Number of Acres Owned Total Votes ICO Fund VI, LLC 9.66 10 According to the provisions of the Mello-Roos Community Facilities Act of 1982, and resolutions of the City Council (the “Council”) of the City of San Bernardino (the “City”), the above-named landowner is entitled to cast the number of votes shown above under the heading “Total Votes,” representing the total votes for the property owned by said landowner. The City has sent the enclosed ballot to you so that you may vote on whether or not to approve the special tax. This special tax ballot is for the use of the property owner of the parcels identified below, which parcels are located within the territory proposed to form the CFD No. 2019-1, City of San Bernardino, County of San Bernardino, State of California. Please advise the City Clerk, at (909) 384-5002 if the name set forth below is incorrect or if you are no longer one of the owners of these parcels. This special tax ballot may be used to express either support for or opposition to the proposed special tax. To be counted, this special tax ballot must be signed below by the owner or, if the owner is not an individual, by an authorized representative of the owner. The ballot must then be delivered to the City Clerk, either by mail or in person, as follows: Mail Delivery: If by mail, place ballot in the return envelope provided, and mail no later than February 17, 2021, two calendar weeks prior to the date set for the election. Mailing later than this deadline creates the risk that the special tax ballot may not be received in time to be counted. Personal Delivery: If in person, deliver to the City Clerk at any time up to 7:00 p.m. on March 3, 2021, at the Clerk’s office at 201 N. “E” Street, Bldg A, City of San Bernardino, CA 92401. However delivered, this ballot must be received by the Clerk prior to the close of the public meeting on March 3, 2021. Very truly yours, Genoveva Rocha, CMC, City Clerk 27.h Packet Pg. 961 Attachment: Attachment 8 - Resolution No. 2021-17; Exhibit G - Special Election Ballot (7041 : Declaring Intent to Annex Territory: CFD No.   TO CAST THIS BALLOT, PLEASE RETURN THIS ENTIRE PAGE. OFFICIAL SPECIAL TAX BALLOT Name & Address of Property Owner: Assessor’s Parcel Number(s): ICO Fund VI, LLC Attn: Joe Oftelie 3090 Pullman Street Costa Mesa, CA 92626 0281-161-48 CITY OF SAN BERNARDINO COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA COMMUNITY FACILITIES DISTRICT NO. 2019-1 (MAINTENANCE SERVICES) AN “X” OR OTHER MARK WILL CAST ALL VOTES ASSIGNED TO THIS BALLOT SPECIAL TAX BALLOT MEASURE MARK “YES” OR “NO” WITH AN “X”: Shall the City Council of the City of San Bernardino be authorized to levy a special tax on an annual basis at the rates and apportioned as described in Exhibit C to the Resolution Declaring its Intention to Annex territory to Community Facilities District No. 2019-1 (Maintenance Services) adopted by the City Council on January 20, 2021 (the “Resolution”), which is incorporated herein by this reference, within the territory identified on the map entitled “Annexation Map No. 7 of Community Facilities District No. 2019-1 (Maintenance Services) City of San Bernardino” to finance certain services as set forth in Section 4 to the Resolution (including incidental expenses), and shall an appropriation limit be established for the Community Facilities District No. 2019-1 (Maintenance Services) in the amount of special taxes collected? YES _________ NO _________ Certification for Special Election Ballot The undersigned is an authorized representative of the above-named landowner and is the person legally authorized and entitled to cast this ballot on behalf of the above-named landowner. I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct and that this declaration is executed on ____________, 20__.        ICO Fund VI, LLC By: Joe Oftelie VP of Community Development Signature Print Name Title   27.h Packet Pg. 962 Attachment: Attachment 8 - Resolution No. 2021-17; Exhibit G - Special Election Ballot (7041 : Declaring Intent to Annex Territory: CFD No. PROJECT MAP CFD NO. 2019-1 (MAINTENANCE SERVICES) TAX ZONE 8   27.iPacket Pg. 963Attachment: Attachment 9 - Project/Location Map (7041 : Declaring Intent to Annex Territory: CFD No. 27.jPacket Pg. 964Attachment: Attachnent 10 - CFD Area Maintenance Exhibit (7041 : Declaring Intent to Annex Territory: