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HomeMy WebLinkAbout2021/11/16 Post-Meeting Agenda Package REGULAR MEETING OF THE CITY COUNCIL **POST AGENDA** Date:November 16, 2021, 5:00 p.m. Location:Council Chambers, 276 Fourth Avenue, Chula Vista, CA View the Meeting Live in English & Spanish: chulavistaca.gov/councilmeetings AT&T U-verse ch. 99 (San Diego County) Cox ch. 24 (Chula Vista in English only) Welcome to your City Council Meeting The City Council has transitioned back to holding live, in-person meetings. PUBLIC COMMENTS: Public comments may be submitted to the City Council in the following ways: In-Person comments during the meeting. Join us for the City Council meeting at the time and location specified on this agenda to make your comments. • How To Submit eComments: Visit www.chulavistaca.gov/councilmeetings, locate this meeting and click on the comment bubble icon. Click on the item you wish to comment on, then click on "Leave Comment." eComments can be submitted when the agenda is published and until the conclusion of public comments for the agenda item. eComments may be viewed by the City Council and members of the public as they are submitted. If you have difficulty submitting eComments email your comments to: cityclerk@chulavistaca.gov • HOW TO WATCH: Live stream is available at www.chulavistaca.gov/councilmeetings. To switch the video to Spanish, please click on "ES" in the bottom right hand corner. Recorded meetings are also aired on Wednesdays at 7 p.m. (both channels above in English only) and are available on the City's website in English and Spanish. ACCESSIBILITY: Individuals with disabilities or special needs are invited to request modifications or accommodations to access and/or participate in a City meeting by contacting the City Clerk’s Office at cityclerk@chulavistaca.gov or (619) 691-5041 (California Relay Service is available for the hearing impaired by dialing 711) at least forty-eight hours in advance of the meeting. SPEAKER TIME LIMITS: The time allotted for speakers may be adjusted by the Mayor. - Five minutes* for specific items listed on the agenda - Three minutes* for items NOT on the agenda (called to speak during Public Comments) - A group of individuals may select a spokesperson to speak on their behalf on an agenda item, waiving their option to speak individually on the same item. Generally, five minutes are allotted per person, up to a limit of 30 minutes, although the limits may be adjusted. Members of the group must be present. *Individuals who use a translator will be allotted twice the amount of time. GETTING TO KNOW YOUR AGENDA Agenda Sections: CONSENT CALENDAR items are routine items that are not expected to prompt discussion. All items are considered for approval at the same time with one vote. Councilmembers and staff may request items be removed and members of the public may submit a speaker slip if they wish to comment on an item. Items removed from the Consent Calendar are discussed after the vote on the remaining Consent Calendar items. PUBLIC COMMENT provides the public with an opportunity to address the Council on any matter not listed on the agenda that is within the jurisdiction of the Council. In compliance with the Brown Act, the Council cannot take action on matters not listed on the agenda. PUBLIC HEARINGS are held on matters specifically required by law. The Mayor opens the public hearing and asks for presentations from staff and from the proponent or applicant involved (if applicable) in the matter under discussion. Following questions from the Councilmembers, the Mayor opens the public hearing and asks for public comments. The hearing is closed, and the City Council may discuss and take action. ACTION ITEMS are items that are expected to cause discussion and/or action by the Council but do not legally require a Public Hearing. Staff may make a presentation and Councilmembers may ask questions of staff and the involved parties before the Mayor invites the public to provide input. CLOSED SESSION may only be attended by members of the Council, support staff, and/or legal counsel. The most common purpose of a Closed Session is to avoid revealing confidential information that may prejudice the legal or negotiating position of the City or compromise the privacy interests of employees. Closed sessions may be held only as specifically authorized by law. Council Actions: RESOLUTIONS are formal expressions of opinion or intention of the Council and are usually effective immediately. ORDINANCES are laws adopted by the Council. Ordinances usually amend, repeal or supplement the Municipal Code; provide zoning specifications; or appropriate money for specific purposes. Most ordinances require two hearings: an introductory hearing, generally followed by a second hearing at the next regular meeting. Most ordinances go into effect 30 days after the final approval. PROCLAMATIONS are issued by the City to honor significant achievements by community members, highlight an event, promote awareness of community issues, and recognize City employees. 2021/11/16 City Council Post Agenda Page 2 of 141 Pages 1.CALL TO ORDER 2.ROLL CALL 3.PLEDGE OF ALLEGIANCE TO THE FLAG AND MOMENT OF SILENCE 4.SPECIAL ORDERS OF THE DAY 4.1.Presentation by the Healthiest Cities & Communities Challenge Resident Leaders & Promotores Providing an Update on Year One Progress and Community Projects for Year Two 6 4.2.Presentation Announcing the Launch of the CV Senior Connect Phone Line (619) 409-1932 to Provide Older Adults and their Caregivers with Chula Vista Information and Resources 4.3.Proclamation Proclaiming the Week of November 14 through 20, 2021 as Hunger and Homeless Awareness Week in the City of Chula Vista 5.CONSENT CALENDAR (Items 5.1 through 5.5) All items listed under the Consent Calendar are considered and acted upon by one motion. Anyone may request an item be removed for separate consideration. RECOMMENDED ACTION: Council approve the recommended action on the below consent calendar items. 5.1.Waive Reading of Text of Resolutions and Ordinances RECOMMENDED ACTION: Approve a motion to read only the title and waive the reading of the text of all resolutions and ordinances at this meeting. 5.2.Consideration of Request for Excused Absences RECOMMENDED ACTION: Consider requests for excused absences as appropriate. 5.3.State Aid Projects: Approve State Master Agreement with the State of California for Specific Project Funding 17 Report Number: 21-0206 Location: No specific geographic location Department: Engineering Environmental Notice: The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required. Notwithstanding the foregoing, the activity qualifies for an Exemption pursuant to Section 15061(b)(3) of the California Environmental Quality Act State Guidelines. RECOMMENDED ACTION: Adopt a resolution approving a State Master Agreement with the State of California for State Aid Projects No. 11-5203S21, and authorizing the Director of Public Works and City Engineer to execute the agreement and future supplements. 2021/11/16 City Council Post Agenda Page 3 of 141 5.4.Investment Report: Quarter ending September 30, 2021 37 Report Number: 21-0218 Location: No specific geographic location Department: Finance Environmental Notice: The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required. RECOMMENDED ACTION: Accept the investment report for the quarter ending on September 30, 2021. 5.5.American Rescue Plan Act Spending Plan: Amendment and Subrecipient Agreement with the Jacobs and Cushman San Diego Food Bank 55 Report Number: 21-0221 Location: No specific geographic location Department: Development Services Environmental Notice: The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required. Notwithstanding the foregoing, the activity qualifies for an Exemption pursuant to Section 15061(b)(3) of the California Environmental Quality Act State Guidelines. RECOMMENDED ACTION: Adopt a resolution amending the American Rescue Plan Act (ARPA) Spending Plan, approving a subrecipient agreement with the Jacobs and Cushman San Diego Food Bank, and reallocating funds for that purpose. 6.PUBLIC COMMENTS The public may address the Council on any matter within the jurisdiction of the Council but not on the agenda. *6.1.Public Comments Received for 11/16/2021 77 7.ACTION ITEMS The following item(s) will be considered individually and are expected to elicit discussion and deliberation. 2021/11/16 City Council Post Agenda Page 4 of 141 7.1.Long-Term Financial Plan : Acceptance of the General Fund Long-Term Financial Plan – Fiscal Years 2023-2032 78 Report Number: 21-0211 Location: No specific geographic location Department: Finance Environmental Notice: The activity is not a "Project" as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required. RECOMMENDED ACTION: Accept the General Fund Long-Term Financial Plan – Fiscal Years 2023 – 2032 report. 8.CITY MANAGER’S REPORTS 9.MAYOR’S REPORTS 10.COUNCILMEMBERS’ COMMENTS 11.CITY ATTORNEY'S REPORTS 12.CLOSED SESSION Announcements of actions taken in Closed Sessions shall be made available by noon on the next business day following the Council meeting at the City Attorney's office in accordance with the Ralph M. Brown Act (Government Code 54957.7) 12.1.Conference with Legal Counsel Regarding Existing Litigation Pursuant to Government Code Section 54956.9(d)(1): Name of case: Vivian Agundez, et al. v. City of Chula Vista, et al., San Diego Superior Court, Case No. 37-2020-00006468-CU-PO-CTL 13.ADJOURNMENT to the regular City Council meeting on December 7, 2021 at 5:00 p.m. in the Council Chambers. Materials provided to the City Council related to an open session item on this agenda are available for public review, please contact the Office of the City Clerk at cityclerk@chulavistaca.gov or (619) 691-5041. Sign up at www.chulavistaca.gov to receive email notifications when City Council agendas are published online. 2021/11/16 City Council Post Agenda Page 5 of 141 Chula Vista Healthiest Cities & Counties Challenge Project San Diego County Childhood Obesity Initiative Strengthening Food Security & Obesity Prevention Margarita Holguin, Director of Partnership Initiatives, We Support U Judit Garcia, Promotora, Resident, Chula Vista 2021/11/16 City Council Post Agenda Page 6 of 141 Project Goals O Create a food security and obesity prevention model that leverages existing health and food system resources and programs O Leverage integration and coordination to increase the efficacy and relevance of food security and obesity prevention activities across the city of Chula Vista O Achieve this through the engagement of resident leaders and a broad coalition of San Diego County and Chula Vista community partners. 2021/11/16 City Council Post Agenda Page 7 of 141 Food Security Initiative Provide nutrition incentives to Chula Vista community members who participate in CalFresh and who shop at Northgate Gonzalez Markets. O Nutrition Incentives, of $100 per month are now available at all Northgate Gonzalez Markets across San Diego, including the Chula Vista Northgate Gonzalez Market. O Nutrition incentive program expansion in 2022 will provide nutrition incentives for community members experiencing health disparities, beyond CalFresh participants. 2021/11/16 City Council Post Agenda Page 8 of 141 2021/11/16 City Council Post Agenda Page 9 of 141 Resident Involvement O Four Promotoras O 9 Resident Leaders O Capacity Building O 11 -Week Resident Leadership Academy O Presentations O Photo Voice project 2021/11/16 City Council Post Agenda Page 10 of 141 Photo Voice broadly showed us the needs and opportunities for change to achieve health equity and equality in our community 2021/11/16 City Council Post Agenda Page 11 of 141 COMMUNITY ASSESSMENT Included: 1.220 Community surveys 2.13 Stakeholder interviews 3.Community Improvement plan and projects 2021/11/16 City Council Post Agenda Page 12 of 141 PROJECT 1 COMMUNITY GARDEN: Community garden that help to increase access to and affordability of healthy foods -fresh fruits and vegetables. Offer free cooking classes, gardening classes, using what is grown in the garden, etc. Offer a free “Nutrition Academy” to enhance nutrition education, healthy eating, knowledge and healthy behaviors. 2021/11/16 City Council Post Agenda Page 13 of 141 PROJECT 2 PHYSICAL ACTIVITY: Increase accessible exercise classes for EVERYONE -Accessible exercise classes (including fitness, Zumba, etc.) at parks, community centers and elsewhere that are free and available to all community members. -Policy changes that support this activity O Open to everyone O Free O Various levels O Offered regularly O Sustainable 2021/11/16 City Council Post Agenda Page 14 of 141 NEXT STEPS O Promote Mas Fresco nutrition incentives and the opportunity this represents to community members across Chula Vista. O Work in partnership with SBCS, Blue Shield Promise Health Plan and other partners to develop a community garden at Lauderbach Park. O Secure funding for a community garden at Lauderbach Park. O Develop and implement a community garden plan and program at Lauderbach Park to include nutrition education and physical activity programming. 2021/11/16 City Council Post Agenda Page 15 of 141 QUESTIONS?? Margarita Holguin Margarita@wesupportu.org Judit Garcia Judit@wesupportu.org 2021/11/16 City Council Post Agenda Page 16 of 141 v . 0 03 P a g e | 1 November 16, 2021 ITEM TITLE State Aid Projects: Approve State Master Agreement with the State of California for Specific Project Funding Report Number: 21-0206 Location: No specific geographic location Department: Engineering Environmental Notice: The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required. Notwithstanding the foregoing, the activity qualifies for an Exemption pursuant to Section 15061(b)(3) of the California Environmental Quality Act State Guidelines. Recommended Action Adopt a resolution approving a State Master Agreement with the State of California for State Aid Projects No. 11-5203S21, and authorizing the Director of Public Works and City Engineer to execute the agreement and future supplements. SUMMARY Prior to the receipt of State of California (State) funds for any State Aid project, the City and the State are required to enter into master agreements relative to general terms and conditions and maintenance of the completed facilities. Tonight’s action will approve the master agreement and authorize the Director of Public Works and the City Engineer to execute the master agreement for State Aid projects as well as all future program supplements to said agreement. ENVIRONMENTAL REVIEW The proposed activity has been reviewed for compliance with the California Environmental Quality Act (CEQA) and it has been determined that the activity is not a “Project” as defined under Section 15378 of the state CEQA Guidelines; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA. Although environmental review is not required at this time, once the scope of potential project(s) has been defined, environmental review will be required for each project and the appropriate environmental determination will be made. Notwithstanding the foregoing, it has also been determined that 2021/11/16 City Council Post Agenda Page 17 of 141 P a g e | 2 the activity qualifies for an Exemption pursuant to Section 15061(b)(3) of the California Environmental Quality Act State Guidelines. Thus, no environmental review is required. BOARD/COMMISSION/COMMITTEE RECOMMENDATION Not applicable. DISCUSSION Federal legislation known as the Intermodal Surface Transportation Efficiency Act (ISTEA) of 1991 and subsequent Transportation Authorization Bills to fund transportation program such as the Surface Transportation Program (STP), the Congestion Mitigation and Air Quality Improvement Program (CMAQ), the Transportation Enhancement Program (TE), Highway Safety Improvement Program (HSIP), and the Highway Bridge Program (HBP) and others may be available for use on local transportation facilities of public agencies qualified to receive Federal and State funds. Before Federal or State aid will be made available for a specific program project, the local agency and State are required to enter into an agreement relative to terms and conditions and maintenance of the completed facility. The agreements are standard master agreements prepared by the State for execution by all participating local agencies. Supplements to the master agreement (Program Supplements) covering individual projects will be executed to implement specific projects. Said Program Supplements identify, among other things, the period of time that funding for the specific project is available. The previous master agreement for State Aid Projects was approved in 2009 by Resolution Number 2009- 036. Local-agency master agreements for State Aid Projects are occasionally updated and re-executed to account for changes in laws and policies. The updated master agreement, now before Council, would be valid for all local State Aid projects from now until another master agreement is administered. The master agreement, now before Council, includes provisions as follows: 1. Project Administration – General project administration procedures. 2. Rights of Way - Right of Way acquisition procedures. 3. Maintenance and Management - Provides for the maintenance and management of completed projects/facilities. 4. Fiscal Provisions – Project financing, payment of project costs, and reimbursement provisions. 5. Audits, Third Party Contracting, Records Retention and Reports – Audits, financial management system, and records retention. 6. Miscellaneous Provisions Approval of this resolution would authorize the Director of Public Works and the City Engineer to execute the master agreement for State Aid projects, as well as all future program supplements to said agreement. This authorization, at the Department level, expedites the grant administration process and reduces overall staff efforts and any potential scheduled delays. DECISION-MAKER CONFLICT 2021/11/16 City Council Post Agenda Page 18 of 141 P a g e | 3 Staff has reviewed the decision contemplated by this action and has determined that it is not site-specific and consequently, the 1,000-foot rule found in California Code of Regulations Title 2, section 18702.2 Amend(b), is not applicable to this decision for purposes of determining a disqualifying real property-related financial conflict of interest under the Political Reform Act (Cal. Gov't Code § 87100, et seq.). CURRENT-YEAR FISCAL IMPACT Execution of the master agreement and program supplements will allow the City to be reimbursed for approved State Aid funded projects. ONGOING FISCAL IMPACT Execution of the master agreement and program supplements will also allow the City to be eligible for additional funding and reimbursement for future Federal and State projects. ATTACHMENTS 1. Master Agreement Administering Agency-State Agreement for State-Funded Projects (11-5203S21) Staff Contact: William Valle, Director of Engineering Yan Liu, Associate Engineer 2021/11/16 City Council Post Agenda Page 19 of 141 RESOLUTION NO. __________ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE MASTER AGREEMENT ADMINISTERING AGENCY–STATE AGREEMENT FOR STATE-FUNDED PROJECTS, AGREEMENT NO. 11-5203S21 BETWEEN THE CITY OF CHULA VISTA AND THE STATE OF CALIFORNIA WHEREAS, prior to the receipt of State funds for any local State-Funded projects, the City and the State are required to enter into a master agreement relative to receipt of funding, prosecution of said projects, and maintenance of the completed facilities; and WHEREAS, the previous master agreement was approved in 2009 and the updated master agreement sets forth the conditions of State-Funded project improvements, right-of-way, fiscal provisions, maintenance, and other miscellaneous provisions; and WHEREAS, the master agreement is substantially similar to the previously approved agreement and was modified to reflect updated local assistance procedures; and WHEREAS, the State has requested that all local agencies sign the updated master agreement and City staff recommends approval of the agreement to allow for the receipt future State funding for local projects. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista that it: 1. Approves the Master Agreement Administering Agency-State Agreement for State- Funded Projects, Project No. 11-5203S21, between the City of Chula Vista and the State of California, in the form presented, with such minor modifications as required or approved by the City Attorney, authorizes and directs the Director of Public Works or City Engineer, or their respective designees, to execute said agreement, and directs that a copy of the executed agreement be kept on file in the Office of the City Clerk. 2. Authorizes the Director of Public Works or City Engineer, or their respective designees, to execute all future Program Supplements to said agreement, and other documentation in support thereof or related thereto, on behalf of the City of Chula Vista. Presented by Approved as to form by William Valle Glen R. Googins Director of Engineering City Attorney 2021/11/16 City Council Post Agenda Page 20 of 141 MASTER AGREEMENT ADMINISTERING AGENCY-STATE AGREEMENT FOR STATE-FUNDED PROJECTS 11 City of Chula Vista -------- ---------------------------------------------- District Administering Agency Agreement No. 11-5203S21 This AGREEMENT, is entered into effective this _______ day of __________, 20___, by and between the City of Chula Vista, hereinafter referred to as "ADMINISTERING AGENCY," and the State of California, acting by and through its Department of Transportation (Caltrans), hereinafter referred to as "STATE", and together referred to as "PARTIES" or individually as a "PARTY." RECITALS: 1. WHEREAS, the Legislature of the State of California has enacted legislation by which certain State funds are made available for use on local transportation related projects of public entities qualified to act as recipients of these state funds; and 2. WHEREAS, ADMINISTERING AGENCY has applied to the California Transportation Commission (CTC) and/or STATE for funding from a State-funded program (herein referred to as STATE FUNDS), as defined in the Local Assistance Program Guidelines (LAPG) and/or in the respective CTC Guidelines, for use on local authorized transportation related projects as a local administered project(s), hereinafter referred to as "PROJECT"; and 3. WHEREAS, said PROJECT will not receive any federal funds; and 4. WHEREAS, before STATE FUNDS will be made available for PROJECT, ADMINISTERING AGENCY and STATE are required to enter into an agreement to establish terms and conditions applicable to the ADMINISTERING AGENCY when receiving STATE FUNDS for a designated PROJECT facility and to the subsequent operation and maintenance of that completed facility. NOW, THEREFORE, the PARTIES agree as follows: Page of 1612021/11/16 City Council Post Agenda Page 21 of 141 ARTICLE I - PROJECT ADMINISTRATION 1. This AGREEMENT shall have no force or effect with respect to any program project unless and until a project- specific Program Supplement to this AGREEMENT for state funded projects, hereinafter referred to as "PROGRAM SUPPLEMENT", has been fully executed by both STATE and ADMINISTERING AGENCY. 2. The State approved project-specific allocation notification letter and approved CTC allocation documentation designate the party responsible for implementing PROJECT, type of work, and location of PROJECT for projects requiring CTC allocation by PROJECT component of work. 3. The PROGRAM SUPPLEMENT sets out special covenants as a condition for the ADMINISTERING AGENCY to receive STATE FUNDS from/through STATE for designated PROJECT. The PROGRAM SUPPLEMENT shall also show these STATE FUNDS that have been initially encumbered for PROJECT along with the matching funds to be provided by ADMINISTERING AGENCY and/or others. Execution of PROGRAM SUPPLEMENT by the PARTIES shall cause ADMINISTERING AGENCY to adopt all the terms of this AGREEMENT as though fully set forth therein in the PROGRAM SUPPLEMENT. Unless otherwise expressly delegated in a resolution by the governing body of ADMINISTERING AGENCY, and with written concurrence by STATE, the PROGRAM SUPPLEMENT shall be approved and managed by the governing body of ADMINISTERING AGENCY. 4. ADMINISTERING AGENCY agrees to execute and return each project-specific PROGRAM SUPPLEMENT. The PARTIES agree that STATE may suspend future allocations, encumbrances and invoice payments for any on- going or future STATE FUNDED PROJECT performed by ADMINISTERING AGENCY if any project-specific PROGRAM SUPPLEMENT is not returned, unless otherwise agreed by STATE in writing. 5. ADMINISTERING AGENCY further agrees, as a condition to the release and payment of STATE FUNDS encumbered for the PROJECT described in each PROGRAM SUPPLEMENT, to comply with the terms and conditions of this AGREEMENT and all the agreed-upon Special Covenants or Remarks incorporated within the PROGRAM SUPPLEMENT, and Cooperative/Contribution Agreement where appropriate, defining and identifying the nature of the specific PROJECT. 6. STATE FUNDS will not participate in any portion of PROJECT work performed in advance of the effective date of allocation by CTC, or by STATE for allocations delegated to STATE by CTC, for said PROJECT. 7. Projects allocated with STATE FUNDS will be administered in accordance with the current CTC STIP Guidelines, applicable chapter(s) of the LAPG, LAPM and/or any other instructions published by STATE. 8. ADMINISTERING AGENCY agrees to ensure compliance with all relevant State laws and requirements for work related to PROJECT, including the California Environmental Quality Act (CEQA). Page of 1622021/11/16 City Council Post Agenda Page 22 of 141 9. ADMINISTERING AGENCY's eligible costs for preliminary engineering work includes all preliminary work directly related to PROJECT up to contract award for construction, including, but not limited to, environmental studies and permits (E&P), preliminary surveys and reports, laboratory work, soil investigations, the preparation of plans, specifications and estimates (PS&E), advertising for bids, awarding of a contract and project development contract administration. 10. ADMINISTERING AGENCY's eligible costs for construction engineering include actual inspection and supervision of PROJECT construction work; construction staking; laboratory and field testing; and the preparation and processing of field reports, records, estimates, final reports, and allowable expenses of employees/consultants engaged in such activities. 11. Unless the PARTIES agree otherwise in writing, ADMINISTERING AGENCY's employees or its contracted engineering consultant shall be responsible for all PROJECT engineering work. 12. ADMINISTERING AGENCY shall not proceed with final design of PROJECT until final environmental approval of PROJECT. Final design entails the design work necessary to complete the PS&E and other work necessary for a construction contract but not required earlier for environmental clearance of that PROJECT. 13. If PROJECT is not on STATE-owned right-of-way, PROJECT shall be constructed in accordance with Chapter 11 of the LAPM that describes minimum statewide design standards for local agency streets and roads. The design standards for projects off the National Highway System (NHS) allow STATE to accept either the current Caltrans Highway Design Manual standards, the current FHWA-adopted American Association of State Highway and Transportation Officials (AASHTO) A Policy on Geometric Design of Highways and Streets standards, or the approved geometric design standards of ADMINISTERING AGENCY. Additionally, for projects off the NHS, STATE will accept ADMINISTERING AGENCY-approved standard specifications, standard plans, materials sampling and testing quality assurance programs that meet the conditions described in the then current Local Assistance Procedures Manual. 14. If PROJECT involves work within or partially within STATE-owned right-of-way, that PROJECT shall also be subject to compliance with the policies, procedures and standards of the STATE Project Development Procedures Manual and Highway Design Manual and where appropriate, an executed cooperative agreement between STATE and ADMINISTERING AGENCY that outlines the PROJECT responsibilities and respective obligations of the PARTIES. ADMINISTERING AGENCY and its contractors shall each obtain an encroachment permit through STATE prior to commencing any work within STATE rights-of-way or work which affects STATE facilities. Page of 1632021/11/16 City Council Post Agenda Page 23 of 141 15. When PROJECT is not on the State Highway System (SHS) but includes work to be performed by a railroad, the contract for such work shall be prepared by ADMINISTERING AGENCY or by STATE, as the PARTIES may hereafter agree. In either event, ADMINISTERING AGENCY shall enter into an agreement with the railroad providing for future maintenance of protective devices or other facilities installed under the contract. 16. ADMINISTERING AGENCY shall comply with the provisions of sections 4450 and 4454 of the California Government Code, as well as other Department of General Services guidance, if applicable, for the contract PS&E for the construction of buildings, structures, sidewalks, curbs and related facilities for accessibility and usability. Further requirements and guidance are provided in Title 24 of the California Code of Regulations. 17. ADMINISTERING AGENCY shall provide a full-time public employee to be in responsible charge of each PROJECT. ADMINISTERING AGENCY shall provide or arrange for adequate supervision and inspection of each PROJECT. ADMINISTERING AGENCY may utilize consultants to perform supervision and inspection work for PROJECT with a fully qualified and licensed engineer. Utilization of consultants does not relieve ADMINISTERING AGENCY of its obligation to provide a full-time public employee to be in responsible charge of each PROJECT. 18. Unless otherwise provided in the PROGRAM SUPPLEMENT, ADMINISTERING AGENCY shall advertise, award, and administer the PROJECT construction contract or contracts. 19. The cost of maintenance, security, or protection performed by ADMINISTERING AGENCY or contractor forces during any temporary suspension of PROJECT or at any other time may not be charged to the PROJECT. 20. ADMINISTERING AGENCY shall submit PROJECT-specific award information to STATE's District Local Assistance Engineer, within sixty (60) days after contract award. 21. ADMINISTERING AGENCY shall submit the final report documents that collectively constitute a "Final Project Expenditure Report", LAPM Exhibit 17-M, within one hundred eighty (180) days of PROJECT completion. Failure by ADMINISTERING AGENCY to submit a "Final Project Expenditure Report", within 180 days of project completion will result in STATE imposing sanctions upon ADMINISTERING AGENCY in accordance with the Local Assistance Procedures Manual. 22. ADMINISTERING AGENCY shall comply with the Americans with Disabilities Act (ADA) of 1990 that prohibits discrimination on the basis of disability and all applicable regulations and guidelines issued pursuant to the ADA. Page of 1642021/11/16 City Council Post Agenda Page 24 of 141 23. The Governor and the Legislature of the State of California, each within their respective jurisdictions, have prescribed certain nondiscrimination requirements with respect to contract and other work financed with public funds. ADMINISTERING AGENCY agrees to comply with the requirements of the FAIR EMPLOYMENT PRACTICES ADDENDUM, attached hereto as Exhibit A and further agrees that any agreement entered into by ADMINISTERING AGENCY with a third party for performance of work connected with PROJECT shall incorporate Exhibit A (with third party's name replacing ADMINISTERING AGENCY) as parts of such agreement. 24. ADMINISTERING AGENCY shall include in all contracts and subcontracts awarded when applicable, a clause that requires each subcontractor to comply with California Labor Code requirements that all workers employed on public works aspects of any project (as defined in California Labor Code sections 1720-1815) be paid not less than the general prevailing wage rates predetermined by the Department of Industrial Relations as effective at the date of contract award by the ADMINISTERING AGENCY. ARTICLE II - RIGHTS-OF-WAY 1. No contract for the construction of a STATE FUNDED PROJECT shall be awarded until all necessary rights of way have been secured. Prior to the advertising for construction of PROJECT, ADMINISTERING AGENCY shall certify and, upon request, shall furnish STATE with evidence that all necessary rights-of-way are available for construction purposes or will be available by the time of award of the construction contract. 2. The furnishing of rights of way by ADMINISTERING AGENCY as provided for herein includes, and is limited to, the following, unless the PROGRAM SUPPLEMENT provides otherwise. (a) Expenditures of capital and support to purchase all real property required for PROJECT free and clear of liens, conflicting easements, obstructions and encumbrances, after crediting PROJECT with the fair market value of any excess property retained and not disposed of by ADMINISTERING AGENCY. (b) The cost of furnishing of right-of-way as provided for herein includes, in addition to real property required for the PROJECT, title free and clear of obstructions and encumbrances affecting PROJECT and the payment, as required by applicable law, of damages to owners of remainder real property not actually taken but injuriously affected by PROJECT. (c) The cost of relocation payments and services provided to owners and occupants pursuant to Government Code sections 7260-7277 when PROJECT displaces an individual, family, business, farm operation or nonprofit organization. (d) The cost of demolition and/or the sale of all improvements on the right-of-way after credit is recorded for sale proceeds used to offset PROJECT costs. (e) The cost of all unavoidable utility relocation, protection or removal. Page of 1652021/11/16 City Council Post Agenda Page 25 of 141 (f) The cost of all necessary hazardous material and hazardous waste treatment, encapsulation or removal and protective storage for which ADMINISTERING AGENCY accepts responsibility and where the actual generator cannot be identified, and recovery made. 3. ADMINISTERING AGENCY agrees to indemnify and hold STATE harmless from any liability that may result in the event the right-of-way for a PROJECT is not clear as certified by ADMINISTERING AGENCY, including, but not limited to, if said right-of-way is found to contain hazardous materials requiring treatment or removal to remediate in accordance with Federal and State laws. ADMINISTERING AGENCY shall pay, from its own non- matching funds, any costs which arise out of delays to the construction of PROJECT because utility facilities have not been timely removed or relocated, or because rights-of-way were not available to ADMINISTERING AGENCY for the orderly prosecution of PROJECT work. ARTICLE III - MAINTENANCE AND MANAGEMENT 1. ADMINISTERING AGENCY will maintain and operate the property acquired, developed, constructed, rehabilitated, or restored by PROJECT for its intended public use until such time as the parties might amend this AGREEMENT to otherwise provide. With the approval of STATE, ADMINISTERING AGENCY or its successors in interest in the PROJECT property may transfer this obligation and responsibility to maintain and operate PROJECT property for that intended public purpose to another public entity. 2. Upon ADMINISTERING AGENCY's acceptance of the completed construction contract or upon contractor being relieved of the responsibility for maintaining and protecting PROJECT, ADMINISTERING AGENCY will be responsible for the maintenance, ownership, liability, and the expense thereof, for PROJECT in a manner satisfactory to the authorized representatives of STATE and if PROJECT falls within the jurisdictional limits of another Agency or Agencies, it is the duty of ADMINISTERING AGENCY to facilitate a separate maintenance agreement(s) between itself and the other jurisdictional Agency or Agencies providing for the operation, maintenance, ownership and liability of PROJECT. Until those agreements are executed, ADMINISTERING AGENCY will be responsible for all PROJECT operations, maintenance, ownership and liability in a manner satisfactory to the authorized representatives of STATE. If, within ninety (90) days after receipt of notice from STATE that a PROJECT, or any portion thereof, is not being properly operated and maintained and ADMINISTERING AGENCY has not satisfactorily remedied the conditions complained of, the approval of future STATE FUNDED PROJECTS of ADMINISTERING AGENCY will be withheld until the PROJECT shall have been put in a condition of operation and maintenance satisfactory to STATE. The provisions of this section shall not apply to a PROJECT that has been vacated through due process of law with STATE's concurrence. Page of 1662021/11/16 City Council Post Agenda Page 26 of 141 3. PROJECT and its facilities shall be maintained by an adequate and well-trained staff of engineers and/or such other professionals and technicians as PROJECT reasonably requires. Said operations and maintenance staff may be employees of ADMINISTERING AGENCY, another unit of government, or a contractor under agreement with ADMINISTERING AGENCY. All maintenance will be performed at regular intervals or as required for efficient operation of the complete PROJECT improvements. 4. ADMINISTERING AGENCY shall comply with all applicable law, including but not limited to, all applicable legal authority regarding construction standards. ARTICLE IV - FISCAL PROVISIONS 1. All contractual obligations of STATE are subject to the appropriation of resources by the Legislature and the allocation of resources by the CTC. 2. STATE'S financial commitment of STATE FUNDS will occur only upon the execution of this AGREEMENT, the execution of each project-specific PROGRAM SUPPLEMENT and/or STATE's approved finance letter. 3. ADMINISTERING AGENCY agrees, as a minimum, to submit invoices in arrears for reimbursement of allowable PROJECT costs at least once every six months commencing after the STATE FUNDS are encumbered on either the project-specific PROGRAM SUPPLEMENT or through a project-specific finance letter approved by STATE. STATE reserves the right to suspend future allocations and invoice payments for any on-going or future STATE FUNDED project performed by ADMINISTERING AGENCY if PROJECT costs have not been invoiced by ADMINISTERING AGENCY for a six-month period 4. Invoices shall be submitted on a standardized billing summary template, in accordance with Chapter 5 of the LAPM to claim reimbursement by ADMINISTERING AGENCY. For construction invoices, pay estimates must be included. 5. ADMINISTERING AGENCY must retain at least one copy of supporting backup documentation for allowable costs incurred and claimed for reimbursement by ADMINISTERING AGENCY. ADMINISTERING AGENCY agrees to submit supporting backup documentation with invoices if requested by State. Acceptable backup documentation includes, but is not limited to, agency's progress payment to the contractors, copies of cancelled checks showing amounts made payable to vendors and contractors, and/or a computerized summary of PROJECT costs. 6. Payments to ADMINISTERING AGENCY can only be released by STATE as reimbursements of actual allowable PROJECT costs already incurred and paid for by the ADMINISTERING AGENCY. Page of 1672021/11/16 City Council Post Agenda Page 27 of 141 7. Indirect Cost Allocation Plans/Indirect Cost Rate Proposals (ICAP/ICRP), Central Service Cost Allocation Plans and related documentation are to be prepared and provided to the Inspector General - Independent Office of Audits and Investigations for review and approval prior to ADMINISTERING AGENCY seeking reimbursement of indirect cost incurred within each fiscal year being claimed for reimbursement. ICAPs/ICRPs must be prepared in accordance with the requirements set forth in 2 CFR, Part 200, Chapter 5 of the LAPM, and the ICAP/ICRP approval procedures established by STATE. 8. STATE will withhold the greater of either two (2) percent of the total of all STATE FUNDS encumbered for each PROGRAM SUPPLEMENT or $40,000 until ADMINISTERING AGENCY submits the Final Report of Expenditures for each completed PROGRAM SUPPLEMENT PROJECT. 9. The estimated total cost of PROJECT, the amount of STATE FUNDS obligated, and the required matching funds may be adjusted by mutual consent of the PARTIES with a finance letter, and an allocation notification letter when applicable. STATE FUNDING may be increased to cover PROJECT cost increases only if such additional funds are available and the CTC and/or STATE concurs with that increase in the form of an allocation and finance letter. 10. When such additional STATE FUNDS are not available, ADMINISTERING AGENCY agrees that any increases in PROJECT costs must be defrayed with ADMINISTERING AGENCY's own funds. 11. ADMINISTERING AGENCY shall use its own non-STATE FUNDS to finance the local share of eligible costs and all PROJECT expenditures or contract items ruled ineligible for financing with STATE FUNDS. STATE shall make the final determination of ADMINISTERING AGENCY's cost eligibility for STATE FUNDED financing with respect to claimed PROJECT costs. 12. ADMINISTERING AGENCY will reimburse STATE for STATE's share of costs for work performed by STATE at the request of ADMINISTERING AGENCY. STATE's costs shall include overhead assessments in accordance with section 8755.1 of the State Administrative Manual. 13. STATE FUNDS allocated by the CTC and/or STATE are subject to the timely use of funds provisions approved in CTC Guidelines and State procedures approved by the CTC and STATE. 14. STATE FUNDS encumbered for PROJECT are available for liquidation only for a limited period from the beginning of the State fiscal year when those funds were appropriated in the State Budget. STATE FUNDS not liquidated within these periods will be reverted unless a Cooperative Work Agreement (CWA) is submitted by ADMINISTERING AGENCY and approved by the California Department of Finance in accordance with Section 16304 of the Government Code. The exact date of fund reversion will be reflected in the STATE signed PROJECT finance letter. Page of 1682021/11/16 City Council Post Agenda Page 28 of 141 15. Payments to ADMINISTERING AGENCY for PROJECT-related travel and subsistence (per diem) expenses of ADMINISTERING AGENCY forces and its contractors and subcontractors claimed for reimbursement or as local match credit shall not exceed rates authorized to be paid to rank and file STATE employees under current California Department of Human Resources (CalHR) rules unless a Cooperative Work Agreement (CWA) is submitted by ADMINISTERING AGENCY and approved by the California Department of Finance in accordance with Government Code section 16304. If the rates invoiced by ADMINISTERING AGENCY are in excess of CalHR rates, ADMINISTERING AGENCY is responsible for the cost difference, and any overpayments inadvertently paid by STATE shall be reimbursed to STATE by ADMINISTERING AGENCY on demand. 16. ADMINISTERING AGENCY agrees to comply with California Government Code 4525- 4529.14. Administering Agency shall undertake the procedures described in California Government Code 4527(a) and 4528(a). Administering Agency shall also comply with 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles and Audit Requirement for Federal Awards, excluding 2 CFR Part 200.318-200.326. 17. ADMINISTERING AGENCY agrees and will assure that its contractors and subcontractors will be obligated to agree that Contract Cost Principles and Procedures, 48 CFR, Federal Acquisition Regulations System, Chapter 1, Part 31, et seq., shall be used to determine the allowability of individual PROJECT cost items. Every recipient and sub-recipient receiving PROJECT funds under this AGREEMENT shall comply with Federal administrative procedures in accordance with 2 CFR, Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirement for Federal Awards, excluding 2 CFR Part 200.318-200.326Governments. ADMINISTERING AGENCY agrees to comply with the provisions set forth in 23 CFR Parts 140, 645 and 646 when contracting with railroad and utility companies. 18. Every recipient and sub-recipient receiving PROJECT funds under this AGREEMENT shall comply with 2 CFR 200 excluding 2 CFR Part 200.318-200.326, 48 CFR Chapter 1, Part 31, LAPM, Public Contract Code (PCC) 10300- 10334 (procurement of goods), PCC 10335-10381 (non-A&E services), California Government Code 4525-4529.5 including 4527(a) and 4528(a), and other applicable STATE regulations. 19. Any PROJECT costs for which ADMINISTERING AGENCY has received payment or credit that are determined by subsequent audit to be questioned, disallowed, or unallowable under 2 CFR, Part 200, 48 CFR, Chapter 1, Part 31, 23 CFR Parts 140, 645 and 646, LAPM, Public Contract Code (PCC) 10300-10334 (procurement of goods), PCC 10335-10381 (non-A&E services), California Government Code 4525-4529.5 including 4527(a) and 4528(a), and other applicable STATE regulations are subject to repayment by ADMINISTERING AGENCY to STATE and may result in STATE imposing sanctions on ADMINISTERING AGENCY as described in Chapter 20 of the Local Assistance Procedures Manual. 20. Should ADMINISTERING AGENCY fail to refund any moneys due upon written demand by STATE as provided herein or should ADMINISTERING AGENCY breach this AGREEMENT by failing to complete PROJECT without adequate justification and approval by STATE, then, within thirty (30) days of demand, or within such other period as may be agreed to in writing between the PARTIES hereto, STATE, acting Page of 1692021/11/16 City Council Post Agenda Page 29 of 141 through the State Controller, the State Treasurer, the CTC or any other public entity or agency, may intercept, withhold and demand the transfer of an amount equal to the amount paid by or owed to STATE for each PROJECT, from future apportionments, or any other funds due ADMINISTERING AGENCY from the Highway Users Tax Fund or any other sources of funds, and/or may also withhold approval of future STATE FUNDED projects proposed by ADMINISTERING AGENCY. 21. Should ADMINISTERING AGENCY be declared to be in breach of this AGREEMENT or otherwise in default thereof by STATE, and if ADMINISTERING AGENCY is constituted as a joint powers authority, special district, or any other public entity not directly receiving funds through the State Controller, STATE is authorized to obtain reimbursement from whatever sources of funding are available, including the withholding or transfer of funds, from those constituent entities comprising a joint powers authority or by bringing of an action against ADMINISTERING AGENCY or its constituent member entities, to recover all funds provided by STATE hereunder. 22. ADMINISTERING AGENCY acknowledges that the signatory party represents the ADMINISTERING AGENCY and further warrants that there is nothing within a Joint Powers Agreement, by which ADMINISTERING AGENCY was created, if any exists, that would restrict or otherwise limit STATE's ability to recover STATE FUNDS improperly spent by ADMINISTERING AGENCY in contravention of the terms of this AGREEMENT ARTICLE V AUDITS, THIRD PARTY CONTRACTING, RECORDS RETENTION AND REPORTS 1. STATE reserves the right to conduct technical and financial audits of PROJECT work and records and ADMINISTERING AGENCY agrees, and shall require its contractors and subcontractors to agree, to cooperate with STATE by making all appropriate and relevant PROJECT records available for audit and copying as required by paragraph three (3) of Article V. 2. ADMINISTERING AGENCY, its contractors and subcontractors shall establish and maintain a financial management system and records that properly accumulate and segregate reasonable, allowable, and allocable incurred PROJECT costs and matching funds by line item for the PROJECT. The financial management system of ADMINISTERING AGENCY, its contractors and all subcontractors shall conform to Generally Accepted Accounting Principles, enable the determination of incurred costs at interim points of completion, and provide support for reimbursement payment vouchers or invoices sent to or paid by STATE. 3. ADMINISTERING AGENCY, ADMINISTERING AGENCY's contractors and subcontractors, and STATE shall each maintain and make available for inspection and audit by STATE, the California State Auditor, or any duly authorized representative of STATE or the United States, all books, documents, papers, accounting records, and other evidence pertaining to the performance of such contracts, including, but not limited to, the costs of administering those various contracts, and ADMINISTERING AGENCY shall furnish copies thereof if requested. All of the above-referenced parties shall make such AGREEMENT and PROGRAM SUPPLEMENT materials available at their respective offices at all reasonable times Page of 16102021/11/16 City Council Post Agenda Page 30 of 141 during the entire PROJECT period and for three (3) years, or 35 years for Prop 1B funds, from the date of final payment to ADMINISTERING AGENCY. 4. ADMINISTERING AGENCY shall not award a construction contract over $25,000 on the basis of a noncompetitive negotiation for work to be performed under this AGREEMENT without the prior written approval of STATE. All contracts awarded by ADMINISTERING AGENCY intended or used as local match credit must meet the requirements set forth in this AGREEMENT regarding local match funds. 5. ADMINISTERING AGENCY shall comply with Chapter 10 (commencing with Section 4525) Division 5 of Title 1 of the Government Code and shall undertake the procedures described in California Government Code 4527(a) and 4528(a). Administering Agency shall comply with Chapter 10 of the LAPM for A&E Consultant Contracts. 6. ADMINISTERING AGENCY shall comply with Government Code Division 5 Title 1 sections 4525-4529.5 and shall undertake the procedures described in California Government Code 4527(a) and 4528(a) for procurement of professional service contracts. Administering Agency shall follow Public Contract Code Section 10335-10381 for other professional service contracts. 7. Any subcontract entered into by ADMINISTERING AGENCY as a result of this AGREEMENT shall contain all of the provisions of Article IV, FISCAL PROVISIONS, and this ARTICLE V, AUDITS, THIRD-PARTY CONTRACTING, RECORDS RETENTION AND REPORTS and shall mandate that travel and per diem reimbursements and third- party contract reimbursements to subcontractors will be allowable as PROJECT costs only after those costs are incurred and paid for by the subcontractors. 8. To be eligible for local match credit, ADMINISTERING AGENCY must ensure that local match funds used for a PROJECT meet the fiscal provisions requirements outlined in ARTICLE IV in the same manner that is required of all other PROJECT expenditures. 9. Except as provided in this Article, this AGREEMENT is solely between and for the benefit of the PARTIES and there are no third-party beneficiaries. ARTICLE VI - MISCELLANEOUS PROVISIONS 1. ADMINISTERING AGENCY agrees to use all PROJECT funds reimbursed hereunder only for transportation purposes that are in conformance with Article XIX of the California State Constitution and other California laws. 2. ADMINISTERING AGENCY shall conform to all applicable State and Federal statutes and regulations, and the Local Assistance Program Guidelines and Local Assistance Procedures Manual as published by STATE and incorporated herein, including all subsequent approved revisions thereto applicable to PROJECT unless otherwise designated in the project-specific executed PROJECT SUPPLEMENT. Page of 16112021/11/16 City Council Post Agenda Page 31 of 141 3. This AGREEMENT is subject to any additional restrictions, limitations, conditions, or any statute enacted by the State Legislature or adopted by the CTC that may affect the provisions, terms, or funding of this AGREEMENT in any manner. 4. ADMINISTERING AGENCY and the officers and employees of ADMINISTERING AGENCY, when engaged in the performance of this AGREEMENT, shall act in an independent capacity and not as officers, employees or agents of STATE. 5. Each project-specific PROGRAM SUPPLEMENT shall separately establish the terms and funding limits for each described PROJECT funded under this AGREEMENT and that PROGRAM SUPPLEMENT. No STATE FUNDS are obligated against this AGREEMENT. 6. ADMINISTERING AGENCY certifies that neither ADMINISTERING AGENCY nor its principals are suspended or debarred at the time of the execution of this AGREEMENT, and ADMINISTERING AGENCY agrees that it will notify STATE immediately in the event a suspension or a debarment occurs after the execution of this AGREEMENT. 7. ADMINISTERING AGENCY certifies, by execution of this AGREEMENT, that no person or selling agency has been employed or retained to solicit or secure this AGREEMENT upon an agreement or understanding for a commission, percentage, brokerage, or contingent fee, excepting bona fide employees or bona fide established commercial or selling agencies maintained by ADMINISTERING AGENCY for the purpose of securing business. For breach or violation of this warranty, STATE has the right to annul this AGREEMENT without liability, pay only for the value of the PROJECT work actually performed, or in STATE's discretion, to deduct from the price of PROGRAM SUPPLEMENT consideration, or otherwise recover, the full amount of such commission, percentage, brokerage, or contingent fee. 8. In accordance with Public Contract Code section 10296, ADMINISTERING AGENCY hereby certifies under penalty of perjury that no more than one final unappealable finding of contempt of court by a federal court has been issued against ADMINISTERING AGENCY within the immediate preceding two (2) year period because of ADMINISTERING AGENCY's failure to comply with an order of a federal court that orders ADMINISTERING AGENCY to comply with an order of the National Labor Relations Board. 9. ADMINISTERING AGENCY shall disclose any financial, business, or other relationship with STATE that may have an impact upon the outcome of this AGREEMENT or any individual PROJECT encompassed within a PROGRAM SUPPLEMENT. ADMINISTERING AGENCY shall also list current contractors who may have a financial interest in the outcome of a PROJECT undertaken pursuant to this AGREEMENT. These disclosures shall be delivered to STATE in a form deemed acceptable by the STATE prior to execution of this AGREEMENT. 10. ADMINISTERING AGENCY hereby certifies that it does not have, nor shall it acquire, any financial or business interest that would conflict with the performance of any PROJECT initiated under this AGREEMENT. Page of 16122021/11/16 City Council Post Agenda Page 32 of 141 11. ADMINISTERING AGENCY certifies that this AGREEMENT was not obtained or secured through rebates, kickbacks or other unlawful consideration either promised or paid to any STATE employee. For breach or violation of this warranty, STATE shall have the right, in its sole discretion, to terminate this AGREEMENT without liability, to pay only for PROJECT work actually performed, or to deduct from a PROGRAM SUPPLEMENT price or otherwise recover the full amount of such rebate, kickback, or other unlawful consideration. 12. Any dispute concerning a question of fact arising under this AGREEMENT that is not disposed of by agreement shall be decided by the STATE's Contract Manager, who shall be identified to ADMINISTERING AGENCY at the time of execution of this AGREEMENT and, as applicable , any time that Contract Manager changes during the duration of this AGREEMENT who may consider any written or verbal evidence submitted by ADMINISTERING AGENCY. The decision of the Contract Manager, issued in writing, shall be conclusive and binding on the PARTIES on all questions of fact considered and determined by the Contract Manager. 13. Neither the pendency of a dispute nor its consideration by the Contract Manager will excuse the ADMINISTERING AGENCY from full and timely performance in accordance with the terms of this AGREEMENT and each PROGRAM SUPPLEMENT. 14. Neither STATE nor any officer or employee thereof is responsible for any injury, damage or liability occurring by reason of anything done or omitted to be done by ADMINISTERING AGENCY under or in connection with any work, authority or jurisdiction of ADMINISTERING AGENCY arising under this AGREEMENT. It is understood and agreed that ADMINISTERING AGENCY shall fully defend, indemnify and save harmless STATE and all of its officers and employees from all claims and suits or actions of every name, kind and description brought forth under, including but not limited to, tortious, contractual, inverse condemnation or other theories or assertions of liability occurring by reason of anything done or omitted to be done by ADMINISTERING AGENCY under this AGREEMENT. 15. Neither ADMINISTERING AGENCY nor any officer or employee thereof is responsible for any injury, damage or liability occurring by reason of anything done or omitted to be done by, under or in connection with any work, authority or jurisdiction arising under this AGREEMENT. It is understood and agreed that STATE shall fully defend, indemnify and save harmless the ADMINISTERING AGENCY and all of its officers and employees from all claims, suits or actions of every name, kind and description brought forth under, including but not limited to, tortious, contractual, inverse condemnation and other theories or assertions of liability occurring by reason of anything done or omitted to be done by STATE under this AGREEMENT. 16. In the event of (a) ADMINISTERING AGENCY failing to timely proceed with effective PROJECT work in accordance with the project-specific PROGRAM SUPPLEMENT; (b) failing to maintain any applicable bonding requirements; and (c) otherwise materially violating the terms and conditions of this AGREEMENT and/or any PROGRAM SUPPLEMENT, STATE reserves the right to terminate funding for that PROJECT upon thirty (30) days' written notice to ADMINISTERING AGENCY. Page of 16132021/11/16 City Council Post Agenda Page 33 of 141 17. No termination notice shall become effective if, within thirty (30) days after receipt of a Notice of Termination, ADMINISTERING AGENCY either cures the default involved or, if the default is not reasonably susceptible of cure within said thirty (30) day period the ADMINISTERING AGENCY proceeds thereafter to complete that cure in a manner and time line acceptable to STATE. 18. Any such termination shall be accomplished by delivery to ADMINISTERING AGENCY of a Notice of Termination, which notice shall become effective not less than thirty (30) days after receipt, specifying the reason for the termination, the extent to which funding of work under this AGREEMENT and the applicable PROGRAM SUPPLEMENT is terminated and the date upon which such termination becomes effective, if beyond thirty (30) days after receipt. During the period before the effective termination date, ADMINISTERING AGENCY and STATE shall meet to attempt to resolve any dispute. In the event of such termination, STATE may proceed with the PROJECT work in a manner deemed proper by STATE. If STATE terminates funding for PROJECT with ADMINISTERING AGENCY for the reasons stated in paragraph sixteen (16) of ARTICLE VI, STATE shall pay ADMINISTERING AGENCY the sum due ADMINISTERING AGENCY under the PROGRAM SUPPLEMENT and/or STATE-approved finance letter prior to termination, provided, however, ADMINISTERING AGENCY is not in default of the terms and conditions of this AGREEMENT or the project-specific PROGRAM SUPPLEMENT and that the cost of any PROJECT completion to STATE shall first be deducted from any sum due ADMINISTERING AGENCY. 19. In the case of inconsistency or conflicts with the terms of this AGREEMENT and that of a project-specific PROGRAM SUPPLEMENT and/or Cooperative Agreement, the terms stated in that PROGRAM SUPPLEMENT and/or Cooperative Agreement shall prevail over those in this AGREEMENT. 20. Without the written consent of STATE, this AGREEMENT is not assignable by ADMINISTERING AGENCY either in whole or in part. 21. No alteration or variation of the terms of this AGREEMENT shall be valid unless made in writing and signed by the PARTIES, and no oral understanding or agreement not incorporated herein shall be binding on any of the PARTIES. IN WITNESS WHEREOF, the parties have executed this AGREEMENT by their duly authorized officer. STATE OF CALIFORNIA City of Chula Vista DEPARTMENT OF TRANSPORTATION By______________________________ By_______________________________ ________________________________ _______________________________ Chief, Office of Project Implementation City of Chula Vista Division of Local Assistance Representative Name & Title (Authorized Governing Body Representative) Date __________________________ Date __________________________ Page of 16142021/11/16 City Council Post Agenda Page 34 of 141 EXHIBIT A - FAIR EMPLOYMENT PRACTICES ADDENDUM 1. In the performance of this Agreement, ADMINISTERING AGENCY will not discriminate against any employee for employment on account of race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, genetic information, marital status, sex, gender, gender identity, gender expression, age, sexual orientation, or military and veteran status. ADMINISTERING AGENCY will take affirmative action to ensure that employees are treated during employment without regard to their race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, genetic information, marital status, sex, gender, gender identity, gender expression, age, sexual orientation, or military and veteran status. Such action shall include, but not be limited to, the following: employment; upgrading; demotion or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. ADMINISTERING AGENCY shall post in conspicuous places, available to employees for employment, notices to be provided by STATE setting forth the provisions of this Fair Employment section. 2. ADMINISTERING AGENCY, its contractor(s) and all subcontractors shall comply with the provisions of the Fair Employment and Housing Act (Gov. Code, 12900 et seq.), and the applicable regulations promulgated thereunder (Cal. Code Regs., Title 2, 11000, et seq.). The applicable regulations of the Fair Employment and Housing Commission implementing Government Code section 12900(a-f), set forth in Chapter 5 of Division 4 of Title 2 of the California Code of Regulations are incorporated into this AGREEMENT by reference and made a part hereof as if set forth in full. Each of the ADMINISTERING AGENCY'S contractors and all subcontractors shall give written notice of their obligations under this clause to labor organizations with which they have a collective bargaining or other agreements, as appropriate. 3. ADMINISTERING AGENCY shall include the nondiscrimination and compliance provisions of this clause in all contracts and subcontracts to perform work under this AGREEMENT. 4. ADMINISTERING AGENCY will permit access to the records of employment, employment advertisements, application forms, and other pertinent data and records by STATE, the State Fair Employment and Housing Commission, or any other agency of the State of California designated by STATE, for the purposes of investigation to ascertain compliance with the Fair Employment section of this Agreement. 5. Remedies for Willful Violation: (a) STATE may determine a willful violation of the Fair Employment provision to have occurred upon receipt of a final judgment to that effect from a court in an action to which ADMINISTERING AGENCY was a party, or upon receipt of a written Page of 16152021/11/16 City Council Post Agenda Page 35 of 141 notice from the Fair Employment and Housing Commission that it has investigated and determined that ADMINISTERING AGENCY has violated the Fair Employment Practices Act. (b) For willful violation of this Fair Employment Provision, STATE shall have the right to terminate this Agreement either in whole or in part, and any loss or damage sustained by STATE in securing the goods or services thereunder shall be borne and paid for by ADMINISTERING AGENCY and by the surety under the performance bond, if any, and STATE may deduct from any moneys due or thereafter may become due to ADMINISTERING AGENCY, the difference between the price named in the Agreement and the actual cost thereof to STATE to cure ADMINISTERING AGENCY's breach of this Agreement. Page of 16162021/11/16 City Council Post Agenda Page 36 of 141 v . 0 03 P a g e | 1 November 16, 2021 ITEM TITLE Investment Report: Quarter ending September 30, 2021 Report Number: 21-0218 Location: No specific geographic location Department: Finance Environmental Notice: The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required. Recommended Action Accept the investment report for the quarter ending on September 30, 2021. SUMMARY Transmitted herewith is the City’s investment report for the quarter ended September 30, 2021. To meet the reporting requirements set forth in the California Government Code Sections 53600 et seq. and the City of Chula Vista Investment Policy and Guidelines, a separate report was distributed to the City Council in October. ENVIRONMENTAL REVIEW The Director of Development Services has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a “Project” as defined under Section 15378 of the State CEQA Guidelines because the proposed activity consists of a governmenta l fiscal/administrative activity which does not result in a physical change in the environment; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA. Thus, no environmental review is required. BOARD/COMMISSION/COMMITTEE RECOMMENDATION Not applicable. 2021/11/16 City Council Post Agenda Page 37 of 141 P a g e | 2 DISCUSSION The total cash and investment portfolio held by the City as of September 30, 2021 was $485,016,118 and total cash and investments held by the trustees was $40,045,208. The cash and investments held by the City are composed of the following components: Managed Investment Portfolio ($221,404,757), State of CA Local Agency Investment Fund ($23,766,705), County of San Diego Pooled Investment Fund ($192,531,108), Cash/Time Deposits ($45,669,670), and accrued interest on investment ($1,643,878). Cash and investments held by the City and the trustees continue to be invested in accordance with the Government Code and the Council Investment Policy as adopted by Resolution 2021- 022 on February 16, 2021. During the quarter, nineteen investments matured totaling $21,015,000. A portion of the funds from the matured investments were utilized to purchase four corporate notes ($7,580,000), and one municipal bond ($450,000). The balance of the funds from the maturities plus an additional $5,000,000 from the CA Local Agency Investment Fund were used this quarter for City operating expenses. An additional $9,091,700 was transferred from the BNY Mellon Money Market Fund this quarter for future City operating expenses. Two-year Treasuries yielding 0.25% at the beginning of the quarter ended the quarter at a yield of 0.28%. The City’s investment portfolio continued to outperform the two-year treasury yield this quarter. As of September 30, 2021, the Weighted Yield to Maturity on the Managed Investment Portfolio was 2.13%, which was a decrease of ten basis points from the previous quarter. At the end of this quarter, the Weighted Average Maturity of the Managed Investment Portfolio was 1.79 years, which decreased from 1.82 the previous quarter and is within the Council Policy. The Federal Open Market Committee (FOMC) meets approximately every six weeks and determines the level of the Federal Funds Rate. At their September 22 meeting, the FOMC voted to maintain the Federal Funds Rate target range at its current level of 0.00% to 0.25%. The following excerpts are from the statement issued by the FOMC following their September 22 meeting. “…With progress on vaccinations and strong policy support, indicators of economic activity and employment have continued to strengthen. The sectors most adversely affected by the pandemic have improved in recent months, but the rise in COVID-19 cases has slowed their recovery. Inflation is elevated, largely reflecting transitory factors. The path of the economy continues to depend on the course of the virus. Progress on vaccinations will likely continue to reduce the effects of the public health crisis on the economy, but risks to the economic outlook remain.” Finance staff continued to manage the portfolio and work with multiple broker/dealers for investment purchases throughout the quarter. Ongoing portfolio management activity will continue to be performed in- house by the Director of Finance and finance staff. There is no further activity to report on other than routine investments by the City’s Finance Department. DECISION-MAKER CONFLICT 2021/11/16 City Council Post Agenda Page 38 of 141 P a g e | 3 Staff has reviewed the decision contemplated by this action and has determined that it is not site-specific and consequently, the real property holdings of the City Council members do not create a disqualifying real property-related financial conflict of interest under the Political Reform Act (Cal. Gov’t Code § 87100, et seq.). Staff is not independently aware, and has not been informed by any City Council member, of any other fact that may constitute a basis for a decision-maker conflict of interest in this matter. CURRENT-YEAR FISCAL IMPACT Considering the projected timing of cash receipts and disbursements and the structure of the Pooled Investment Portfolio, the City should be able to comfortably meet overall cash flow needs over the next six months. There is no direct fiscal impact by this action. ONGOING FISCAL IMPACT There is no ongoing fiscal impact by this action. ATTACHMENTS 1. Summary of Cash and Investments as of September 30, 2021 2. Investment Report for the Quarter Ended September 30, 2021 Staff Contact: Sarah Schoen, Director of Finance Lisa Partee, Fiscal and Management Analyst, Finance Department 2021/11/16 City Council Post Agenda Page 39 of 141 % of Investment Type Par Value Market Value Book Value Portfolio Managed Investment Portfolio BNY Custodial Cash Account $105,915 $105,915 $105,915 0.02% U.S. Treasury Bond/Note 0 0 0 0.00% Federal Agency Collateralized Mtg Ob. 0 0 0 0.00% Federal Agency Bond/Note 22,719,000 23,228,210 22,679,877 4.32% Corporate Note 95,054,000 98,087,757 96,583,417 18.39% Commercial Paper 0 0 0 0.00% Certificate of Deposit 34,506,000 35,398,815 34,508,305 6.57% Municipal Bond 52,730,000 54,558,824 53,819,564 10.25% Supranationals 5,000,000 5,074,100 4,794,949 0.91% Asset Back Security/Collateralized Mtg Ob. 4,674,244 4,755,875 4,756,459 0.91% Placement Service Deposits (CDARS) 4,156,271 4,156,271 4,156,271 0.79% Managed Investment Portfolio Subtotal 218,945,430 225,365,767 221,404,757 42.17% Pooled Investments State of CA Local Agency Investment Fund 23,766,705 23,763,702 23,766,705 4.53% County of San Diego Pooled Investment Fund 192,531,108 193,358,992 192,531,108 36.67% Pooled Investments Subtotal 216,297,813 217,122,694 216,297,813 41.19% Cash/Time Deposits 45,669,670 45,669,670 45,669,670 8.70% Accrued Interest 1,643,878 1,643,878 1,643,878 0.31% Total Cash & Investments Held by the City $482,556,791 $489,802,010 $485,016,118 92.37% Held by Bank Trustee/Fiduciary Funds (1) Investment Agreements 0 0 0 0.00% Mutual Funds 22,857,194 22,855,466 22,857,194 4.35% Cash with Fiscal Agents 966,405 966,405 966,405 0.18% Restricted Cash 863,578 863,578 863,578 0.16% U.S. Government 15,358,031 15,358,031 15,358,031 2.92% Total Held by Bank Trustee/Fiduciary Funds $40,045,208 $40,043,480 $40,045,208 7.63% Total Portfolio $522,601,999 $529,845,489 $525,061,326 100.00% Notes: 1. Reflects bond proceeds and tax levy revenues held by trustee in accordance with bond covenants. 2. Par value is the principal amount of the investment on maturity. 3. Market values contained herein are received from sources we believe are reliable, however we do not guarantee their accuracy. 4. Book value is par value of the security plus or minus any premium or discount on the security. Summary of Cash and Investments as of September 30, 2021 City of Chula Vista 2021/11/16 City Council Post Agenda Page 40 of 141 Excludes Pooled Investments and BNY Custodial Cash AccountPortfolio MaturityUnder 1 YearMaturitySep 2021Jun 2021Change1 - 2 Years3-Month 0.04% 0.05% -0.01%2 - 3 Years1-Year 0.09% 0.07% 0.02%3 - 4 Years2-Year 0.28% 0.25% 0.03%4 - 5 Years3-Year 0.53% 0.46% 0.07%Total5-Year 0.98% 0.87% 0.11%10-Year 1.52% 1.45% 0.07%JulyAugustSep 2020Sep 2019Sep 2018Sep 2017September0.13% 1.63% 2.81% 1.47%Total for QuarterNote: Interest Earnings figures do not include capital gains or losses624,204$ 2,013,370$ (122,153)$ (88,014)$ (64,014)$ (274,182)$ U.S. Treasury Yields - Quarterly Comparison2-Year U.S. Treasury Yield - Historical Data596,057$ 582,940$ 718,211$ 670,955$ Interest Earnings 20211,739,189$ % Maturing2020 Change214,683,244$ 32%25%30%13%0%100%69,628,000$ 53,635,244$ 63,781,000$ 27,639,000$ 560,191$ PAR Maturing-$ City of Chula VistaInvestment Report for the Quarter Ended September 30, 2021Portfolio Summary and Key StatisticsPAR ValueBook ValueMarket ValueWeighted Average Maturity (in years)Weighted Yield to MaturityPortfolio Key Statistics435,243,243$ 437,702,570$ 442,488,462$ 1.792.13%1.07%8.00%0.00%22.17%5.25%0.00%12.33%1.15%5.37%43.70%0.94%0.02%ASSET-BACKED SECURITYCERTIFICATE OF DEPOSITCOMMERCIAL PAPERCORPORATE NOTEFEDERAL AGENCY BOND/NOTEU.S. TREASURY NOTEMUNICIPAL BONDSUPRANATIONALLOCAL AGENCY INVESTMENT FUNDSD COUNTY INVESTMENT POOLPLACEMENT SERVICE DEPOSITS (CDARS)MONEY MARKET FUND0%5%10%15%20%25%30%35%Under 1Year1 - 2 Years 2 - 3 Years 3 - 4 Years 4 - 5 Years32%25%30%13%0%Portfolio Maturity DistributionPage 1 of 14Source: City of Chula Vista Finance Department2021/11/16 City Council Post Agenda Page 41 of 141 City of Chula Vista Market Values as of: 9/30/2021Current InvestmentsDescription DatedDate Coupon MaturityCUSIPParS&PMdysTradeDateSettlementDate Book Value YTMBNY Market Value 1Issuer ALLYA 2018-3 A3 6/27/2018 3.000% 1/17/202302007JAC114,243.57AAA 6/19/2018 6/27/201814,242.60 3.09 14,258.23ALLY AUTO RECEIVABLES TRUSTFORDF 2019-1 A 4/9/2019 2.840% 3/15/202434528QGS71,500,000.00Aaa 2/26/2020 3/2/20201,543,414.50 1.40 1,517,601.90 FORD CREDIT FP MASTER CAPITAL ONE 2019-A2 A2 9/5/2019 1.720% 8/15/202414041NFU02,000,000.00AAA 12/18/2019 12/23/20191,992,939.22 1.86 2,026,534.80CAPITAL ONE MULTI-ASSET EXEC TRCITIBANK 2018-A6 A6 8/17/2018 3.210% 12/7/202417305EGR0560,000.00Aaa 1/2/2020 1/7/2020581,862.37 1.83 579,855.86CITIBANK CREDIT CARD ISSUANCEWORLD OMNI 2018-D A4 10/17/2018 3.440% 12/16/202498162WAE7600,000.00AAA 12/19/2019 12/23/2019624,000.00 2.13 617,623.80WORLD OMNI AUTO RECEIVABLES TRUSTASSET-BACKED SECURITY SUBTOTAL4,674,243.574,756,458.69 4,755,874.59ALLY BANK 11/15/2018 3.200% 11/15/202102007GGA5246,000.00NA 11/7/2018 11/15/2018246,000.00 3.20 246,983.51ALLY BANK UTBUCKEYE COMMUNITY BANK 3/3/2020 1.550% 12/3/202111815SDF4249,000.00NA 2/20/2020 3/3/2020249,000.00 1.55 249,646.22BUCKEYE COMMUNITY BANKBMW BANK OF NA 12/14/2018 3.250% 12/14/202105580AQA5246,000.00NA 12/12/2018 12/14/2018246,000.00 3.25 247,618.75BMW BANK OF NORTH AMERICACONNECTONE BANK 12/28/2018 3.200% 12/28/202120786ACM5249,000.00NA 12/12/2018 12/28/2018249,000.00 3.20 250,914.18CONNECTONE BANKENCORE BANK 7/19/2019 2.000% 1/19/202229260MAB1249,000.00NA 7/9/2019 7/19/2019249,000.00 2.00 250,458.43ENCORE BANKRAYMOND JAMES BANK 1/25/2019 2.950% 1/25/202275472RAA9246,000.00NA 1/23/2019 1/25/2019246,000.00 2.95 248,277.40RAYMOND JAMES BANK NAFARMERS & MERCHANTS BANK 2/14/2020 1.500% 2/14/2022308682BF9249,000.00NA 2/4/2020 2/14/2020249,000.00 1.50 250,307.30FARMERS & MERCHANTS BANKSTATE BANK OF LIZTON IN 2/14/2020 1.600% 2/14/2022856309BT5249,000.00NA 2/5/2020 2/14/2020249,000.00 1.60 250,402.03STATE BANK OF LIZTON INDOLLAR BANK FSB 2/19/2019 2.700% 2/18/202225665QBC8246,000.00NA 2/6/2019 2/19/2019246,000.00 2.70 248,484.29DOLLAR BANK FSBTHIRD FED SAV&LN 2/22/2019 2.800% 2/22/202288413QCG1246,000.00NA 1/29/2019 2/22/2019246,000.00 2.80 248,653.79THIRD FED SAVINGS & LOANFNB OF MCGREGOR TX 2/20/2019 2.700% 2/22/202232112UCV1249,000.00NA 2/6/2019 2/20/2019249,000.00 2.70 251,586.76FNB OF MCGREGOR TXNEXTIER BANK 2/21/2020 1.600% 2/22/202265344AAB1249,000.00NA 1/29/2020 2/21/2020249,000.00 1.60 250,483.88NEXTIER BANKFIRST COMMERCIAL BANK MS 2/21/2020 1.500% 2/22/202231984GFC8249,000.00NA 2/4/2020 2/21/2020249,000.00 1.50 250,383.62FIRST COMMERCIAL BANK MSCITIZENS N/B BLUFFTON 2/21/2020 1.500% 2/22/2022175144DZ4248,000.00NA 2/4/2020 2/21/2020248,000.00 1.50 249,377.61CITIZENS N/B BLUFFTONSB ONE BANK 2/28/2020 1.500% 2/28/202278414TBW1248,000.00NA 2/4/2020 2/28/2020248,000.00 1.50 249,434.63SB ONE BANKFARMERS BANK & TRUST 2/28/2020 1.600% 2/28/2022309162BG9249,000.00NA 2/6/2020 2/28/2020249,000.00 1.60 250,545.27FARMERS BANK & TRUSTINDEPENDENT BANK MEMPHIS 3/5/2020 1.550% 3/7/202245383UUL7249,000.00NA 2/19/2020 3/5/2020249,000.00 1.55 250,540.33INDEPENDENT BANK MEMPHISFIRST STATE BANK BOISE 3/11/2020 1.500% 3/11/202233648PBK8249,000.00NA 2/25/2020 3/11/2020249,000.00 1.50 250,523.31FIRST STATE BANK BOISESALLIE MAE BANK 3/20/2019 2.750% 3/21/20227954502A2246,000.00NA 3/18/2019 3/20/2019246,000.00 2.75 249,065.46SALLIE MAE BANK/SALT LKECAROLINA TRUST BANK 9/20/2019 1.600% 3/21/2022144200BB7249,000.00NA 9/3/2019 9/20/2019249,000.00 1.60 250,736.23CAROLINA TRUST BANKSTATE BANK OF TEXAS 3/20/2020 1.400% 3/21/2022856528DC5249,000.00NA 2/27/2020 3/20/2020249,000.00 1.40 250,498.39STATE BANK OF TEXASUNITED BANKERS BANK 7/24/2019 2.000% 4/25/2022909557JF8249,000.00NA 7/3/2019 7/24/2019249,000.00 2.00 251,633.03UNITED BANKERS BANKLIVE OAK BANK 8/9/2019 2.000% 5/9/2022538036FB5249,000.00NA 7/29/2019 8/9/2019249,000.00 2.00 251,784.88LIVE OAK BANKMERRICK BANK 6/11/2019 2.450% 6/10/202259013KAM8249,000.00NA 6/3/2019 6/11/2019249,000.00 2.45 252,946.55MERRICK BANKFLAGSTAR BANK 6/12/2019 2.500% 6/13/202233847E2J5246,000.00NA 5/29/2019 6/12/2019246,000.00 2.50 250,030.58FLAGSTAR BANKHANMI BANK 7/19/2019 2.000% 7/19/2022410493EL0249,000.00NA 7/9/2019 7/19/2019249,000.00 2.00 252,611.80HANMI BANKTIAA FSB 2/4/2019 2.900% 8/4/202287270LBR3246,000.00NA 1/23/2019 2/4/2019246,000.00 2.90 251,633.74TIAA FSBCIT BANK 8/23/2019 1.950% 8/23/202212556LBB1247,000.00NA 8/12/2019 8/23/2019247,000.00 1.95 250,877.38CIT BANK NA1ST SECURITY BANK 8/30/2019 1.750% 8/30/202233625CCQ0249,000.00NA 8/12/2019 8/30/2019249,000.00 1.75 252,512.021ST SECURITY BANKFIRST SOURCE BANK 7/11/2019 2.000% 9/12/202233646CLJ1247,000.00NA 7/3/2019 7/11/2019247,000.00 2.00 251,211.58FIRST SOURCE BANKCONGRESSIONAL BANK 7/24/2019 2.050% 9/26/202220726ABC1247,000.00NA 7/11/2019 7/24/2019247,000.00 2.05 251,505.05CONGRESSIONAL BANKPLAINSCAPITAL BANK 10/11/2019 1.800% 10/11/202272663QD30247,000.00NA 10/1/2019 10/11/2019247,000.00 1.80 251,024.70PLAINSCAPITAL BANKENERBANK USA 10/31/2018 3.300% 10/31/202229278TDT4249,000.00NA 10/26/2018 10/31/2018249,000.00 3.30 257,308.18ENERBANK USADISCOVER BANK 11/1/2018 3.300% 11/1/2022254673WA0245,000.00NA 10/26/2018 11/1/2018245,000.00 3.30 253,226.31DISCOVER BANKFIRST BANK FINANCIAL 2/6/2019 2.750% 11/7/202231911QFP5249,000.00NA 1/30/2019 2/6/2019249,000.00 2.75 255,960.88FIRST BANK FINANCIAL CENMORGAN STANLEY 11/8/2018 3.400% 11/8/202261760ARM3245,000.00NA 10/31/2018 11/8/2018245,000.00 3.40 253,645.47MORGAN STANLEYFSB OF DEQUEEN 7/30/2019 2.000% 11/30/2022336460CV0249,000.00NA 7/3/2019 7/30/2019249,000.00 2.00 254,112.52FSB OF DEQUEENLUANA SAVINGS BANK 6/21/2019 2.250% 12/21/2022549104GU5247,000.00NA 6/13/2019 6/21/2019247,000.00 2.25 253,082.57LUANA SAVINGS BANKVERUS BANK 6/28/2019 2.200% 12/28/202292535LCH5249,000.00NA 6/13/2019 6/28/2019249,000.00 2.20 255,074.93VERUS BANKWELLS FARGO NATL BANK 12/30/2019 1.850% 12/30/2022949495AF2249,000.00NA 12/16/2019 12/30/2019249,000.00 1.85 253,958.33WELLS FARGO NATL BANKMARTHAS VINEYARD SB 1/21/2020 1.650% 1/23/2023573125AF8249,000.00NA 1/13/2020 1/21/2020249,000.00 1.65 253,556.10MARTHAS VINEYARD SBUNITY BANK NJ 1/22/2020 1.650% 1/23/202391330ABX4249,000.00NA 1/13/2020 1/22/2020249,000.00 1.65 253,556.10UNITY BANK NJPage 2 of 142021/11/16 City Council Post Agenda Page 42 of 141 City of Chula Vista Market Values as of: 9/30/2021Current InvestmentsDescription DatedDate Coupon MaturityCUSIPParS&PMdysTradeDateSettlementDate Book Value YTMBNY Market Value 1IssuerVIRGINIA PARTNERS BANK 1/27/2020 1.650% 1/27/2023928066BB4249,000.00NA 1/13/2020 1/27/2020249,000.00 1.65 253,594.01VIRGINIA PARTNERS BANKPROMISEONE BANK 2/14/2020 1.500% 2/14/202374348HAE8249,000.00NA 2/4/2020 2/14/2020249,000.00 1.50 253,199.30PROMISEONE BANKSERVISFIRST BANK 2/21/2020 1.600% 2/21/202381768PAF3249,000.00NA 1/31/2020 2/21/2020249,000.00 1.60 253,609.04SERVISFIRST BANKBANK OF PERRY COUNTY 2/21/2020 1.550% 2/21/202306425KCC1249,000.00NA 2/4/2020 2/21/2020249,000.00 1.55 253,433.39BANK OF PERRY COUNTYPEOPLEFIRST BANK 3/6/2020 1.350% 3/6/2023709771AG4249,000.00NA 2/27/2020 3/6/2020249,000.00 1.35 252,782.31PEOPLEFIRST BANKPADUCAH BANK AND TRUST 3/12/2020 1.250% 3/13/2023695292FR8249,000.00NA 2/28/2020 3/13/2020249,000.00 1.25 252,467.87PADUCAH BANK AND TRUSTFIRST CAROLINA BANK 3/24/2020 1.100% 3/24/202331944MAR6249,000.00NA 3/2/2020 3/24/2020249,000.00 1.10 251,980.90FIRST CAROLINA BANKSTATE BANK OF REESEVILLE 4/12/2019 2.550% 4/12/2023856487AQ6249,000.00NA 3/28/2019 4/12/2019249,000.00 2.55 257,627.03STATE BANK OF REESEVILLEMIDWEST COMMUNITY BANK 4/15/2020 1.200% 4/14/2023598315CE7249,000.00NA 4/3/2020 4/15/2020249,000.00 1.20 252,432.94MIDWEST COMMUNITY BANKCADENCE BANK 4/15/2020 1.300% 4/17/202312738RGA6248,000.00NA 4/2/2020 4/15/2020248,000.00 1.30 251,822.28CADENCE BANKEAGLEBANK 4/30/2019 2.650% 4/28/202327002YEL6249,000.00NA 4/16/2019 4/30/2019249,000.00 2.65 258,270.02EAGLEBANKSTEARNS BANK 2/10/2020 1.650% 5/10/2023857894F95247,000.00NA 2/4/2020 2/10/2020247,000.00 1.65 252,313.49STEARNS BANKFARMERS & MERCH SVGS BK 8/15/2019 1.950% 8/15/202330886WAB1249,000.00NA 8/1/2019 8/15/2019249,000.00 1.95 256,476.31FARMERS & MERCH SVGS BKNEBRASKALAND NATIONAL BK 8/22/2019 1.750% 8/22/202363970QFT8248,000.00NA 8/12/2019 8/22/2019248,000.00 1.75 254,571.50NEBRASKALAND NATIONAL BANKFIRSTIER BANK 8/23/2019 1.900% 8/23/202333766LAH1249,000.00NA 8/8/2019 8/23/2019249,000.00 1.90 256,325.01FIRSTIER BANKAMERICAN COMMERCE BANK 8/23/2019 1.750% 8/23/202302519TAW6249,000.00NA 8/12/2019 8/23/2019249,000.00 1.75 255,609.68AMERICAN COMMERCE BANKCELTIC BANK 8/30/2019 1.800% 8/30/202315118RRF6249,000.00NA 8/12/2019 8/30/2019249,000.00 1.80 255,853.64CELTIC BANKFIRST ST BANK BUXTON 9/5/2019 1.650% 9/5/202333648RAZ2249,000.00NA 8/27/2019 9/5/2019249,000.00 1.65 255,183.62FIRST ST BANK BUXTONNATIONAL BANK OF NY CITY 9/10/2019 1.700% 9/8/2023634116CU9249,000.00NA 8/27/2019 9/10/2019249,000.00 1.70 255,453.73NATIONAL BANK OF NY CITYABACUS FEDERAL SVGS BANK 9/12/2019 1.700% 9/12/202300257TBG0249,000.00NA 8/27/2019 9/12/2019249,000.00 1.70 255,490.06ABACUS FEDERAL SVGS BANKFIRST SERVICE BANK 9/30/2019 1.750% 9/29/202333640VDB1249,000.00NA 9/17/2019 9/30/2019249,000.00 1.75 255,895.55FIRST SERVICE BANKCOMENITY CAPITAL 10/30/2018 3.450% 10/30/202320033AM86249,000.00NA 10/26/2018 10/30/2018249,000.00 3.45 264,892.34COMENITY CAPITALGOLDMAN SACHS 10/31/2018 3.500% 10/31/202338148PY84245,000.00NA 10/26/2018 10/31/2018245,000.00 3.50 260,782.86GOLDMAN SACHSUBS BANK USA 11/7/2018 3.500% 11/7/202390348JFQ8249,000.00NA 10/30/2018 11/7/2018249,000.00 3.50 265,323.25UBS BANK USABARCLAYS BANK 11/7/2018 3.450% 11/7/202306740KMU8245,000.00NA 10/29/2018 11/7/2018245,000.00 3.45 260,786.37BARCLAYS BANKMORGAN STANLEY 11/8/2018 3.550% 11/8/202361690UAZ3245,000.00NA 10/31/2018 11/8/2018245,000.00 3.55 261,327.30MORGAN STANLEYCITIBANK NA 11/9/2018 3.450% 11/9/202317312QV55245,000.00NA 10/26/2018 11/9/2018245,000.00 3.45 260,827.26CITIBANK NAWELLS FARGO BANK NA 11/9/2018 3.500% 11/9/2023949763UY0249,000.00NA 10/26/2018 11/9/2018249,000.00 3.50 265,365.57WELLS FARGO BANK NACOMMERCIAL BANK 11/15/2018 3.400% 11/15/202320143PDV9249,000.00NA 11/7/2018 11/15/2018249,000.00 3.40 264,958.26COMMERCIAL BANK HARROGATEBANK NEW ENGLAND 7/19/2019 2.150% 11/20/202306426KBH0249,000.00NA 7/10/2019 7/19/2019249,000.00 2.15 258,339.57BANK OF NEW ENGLANDBANK OF BARODA 11/30/2018 3.550% 11/30/202306062R7R7245,000.00NA 11/20/2018 11/30/2018245,000.00 3.55 261,669.25BANK OF BARODAMARLIN BUSINESS BANK 12/2/2019 1.700% 12/4/202357116ATG3249,000.00NA 11/6/2019 12/2/2019249,000.00 1.70 255,921.34MARLIN BUSINESS BANKBAR HARBOR BANK & TRUST 12/31/2018 3.300% 12/29/2023066851WH5249,000.00NA 12/19/2018 12/31/2018249,000.00 3.30 265,166.13BAR HARBOR BANK & TRUSTNAHEOLA CREDIT UNION 1/10/2020 2.000% 1/10/2024629801AB7248,000.00NA 12/20/2019 1/10/2020248,000.00 2.00 256,789.73NAHEOLA CREDIT UNIONMEDALLION BK UT 2/11/2019 3.000% 2/12/202458404DDG3249,000.00NA 1/30/2019 2/11/2019249,000.00 3.00 263,981.14MEDALLION BANK UTAHROLLSTONE BANK & TRUST 2/12/2020 1.650% 2/12/202477579ADF0247,000.00NA 2/11/2020 2/13/2020247,000.00 1.65 253,888.91ROLLSTONE BANK & TRUSTPCSB BANK 2/21/2020 1.650% 2/21/202469324MAL9249,000.00NA 2/6/2020 2/21/2020249,000.00 1.65 256,024.26PCSB BANKBANK HAPOALIM 3/25/2019 2.900% 3/25/202406251AW48246,000.00NA 3/18/2019 3/25/2019246,000.00 2.90 260,737.29BANK HAPOALIM BM NYAXOS BANK 3/26/2020 1.650% 3/26/202405465DAK4249,000.00NA 2/27/2020 3/26/2020249,000.00 1.65 256,150.19AXOS BANKNICOLET NATIONAL BANK 3/31/2020 1.150% 3/28/2024654062JR0249,000.00NA 3/18/2020 3/31/2020249,000.00 1.15 253,039.38NICOLET NATIONAL BANKLAKESIDE BANK 4/14/2020 1.250% 4/12/202451210SSH1249,000.00NA 4/3/2020 4/14/2020249,000.00 1.25 253,593.48LAKESIDE BANKJEFFERSON BANK 4/15/2020 1.250% 4/15/2024472382AQ3249,000.00NA 4/3/2020 4/15/2020249,000.00 1.25 253,608.28JEFFERSON BANKPACIFIC WESTERN BANK 4/16/2020 1.300% 4/16/202469506YRH4248,000.00NA 4/6/2020 4/16/2020248,000.00 1.30 252,906.78PACIFIC WESTERN BANKTHOMASTON SAVINGS BANK 4/23/2020 1.250% 4/23/202488457PAR8248,000.00NA 4/13/2020 4/23/2020248,000.00 1.25 252,623.64THOMASTON SAVINGS BANKNORTHWEST BANK 4/30/2020 1.100% 4/30/202466736ABT5249,000.00NA 4/17/2020 4/30/2020249,000.00 1.10 252,567.31NORTHWEST BANKFIRST FREEDOM BANK 4/30/2020 1.100% 4/30/202432027BAM9249,000.00NA 4/17/2020 4/30/2020249,000.00 1.10 252,567.31FIRST FREEDOM BANKUNITED REPUBLIC BANK 5/13/2020 1.000% 5/13/2024909242AH2249,000.00NA 4/21/2020 5/13/2020249,000.00 1.00 251,959.83UNITED REPUBLIC BANKCAPITAL ONE NA 6/19/2019 2.500% 6/19/202414042RLZ2246,000.00NA 6/11/2019 6/19/2019246,000.00 2.50 258,959.74CAPITAL ONE NAPage 3 of 142021/11/16 City Council Post Agenda Page 43 of 141 City of Chula Vista Market Values as of: 9/30/2021Current InvestmentsDescription DatedDate Coupon MaturityCUSIPParS&PMdysTradeDateSettlementDate Book Value YTMBNY Market Value 1IssuerCAPITAL ONE BANK 6/19/2019 2.500% 6/19/202414042TAW7246,000.00NA 6/11/2019 6/19/2019246,000.00 2.50 258,959.74CAPITAL ONE BANKLCA BANK CORP 6/28/2019 2.200% 6/28/2024501798NL2247,000.00NA 6/19/2019 6/28/2019247,000.00 2.20 258,086.38LCA BANK CORPORATIONREVERE BANK 6/28/2019 2.300% 6/28/2024761402BY1247,000.00NA 6/18/2019 6/28/2019247,000.00 2.30 258,767.39REVERE BANKCENTURY NEXT BANK 7/17/2019 2.000% 7/17/2024156634AS6249,000.00NA 7/3/2019 7/17/2019249,000.00 2.00 258,836.26CENTURY NEXT BANKCF BANK 8/19/2019 1.850% 8/19/202415721UDB2247,000.00NA 8/8/2019 8/19/2019247,000.00 1.85 255,826.91CF BANKFIRST RESOURCE BANK 8/21/2019 1.700% 8/21/202433617LAC3249,000.00NA 8/12/2019 8/21/2019249,000.00 1.70 256,829.67FIRST RESOURCE BANKCALDWELL BANK & TRUST 8/23/2019 1.900% 8/23/2024128829AF5247,000.00NA 8/7/2019 8/23/2019247,000.00 1.90 256,206.98CALDWELL BANK & TRUSTWASHINGTON FEDERAL 8/23/2019 2.050% 8/23/2024938828BJ8249,000.00NA 7/29/2019 8/23/2019249,000.00 2.05 259,381.83WASHINGTON FEDERALGENOA BANKING COMPANY 8/28/2019 1.800% 8/28/2024372348CK6249,000.00NA 8/12/2019 8/28/2019249,000.00 1.80 257,609.51GENOA BANKING COMPANYMERCHANTS STATE BANK 8/30/2019 1.800% 8/30/2024589227AG2247,000.00NA 8/7/2019 8/30/2019247,000.00 1.80 255,374.93MERCHANTS STATE BANKPREFERRED BANK 8/30/2019 1.850% 8/30/2024740367HS9249,000.00NA 8/7/2019 8/30/2019249,000.00 1.85 257,819.52PREFERRED BANKPEOPLES BANK ROCK VALLEY 3/10/2020 1.500% 9/10/2024710665FD7249,000.00NA 2/24/2020 3/10/2020249,000.00 1.50 255,330.39PEOPLES BANK ROCK VALLEYALMA BANK 9/11/2019 1.750% 9/11/2024020080BL0249,000.00NA 8/27/2019 9/11/2019249,000.00 1.75 257,180.28ALMA BANKBANK OF OLD MONROE 9/18/2019 1.700% 9/18/2024064236BG6249,000.00NA 8/27/2019 9/18/2019249,000.00 1.70 256,861.75BANK OF OLD MONROESPRING BANK 9/19/2019 1.650% 9/19/2024849430BA0249,000.00NA 8/27/2019 9/19/2019249,000.00 1.65 256,497.41SPRING BANKENTERPRISE BANK 9/27/2019 1.800% 9/27/202429367RLA2247,000.00NA 9/17/2019 9/27/2019247,000.00 1.80 255,593.62ENTERPRISE BANKBANKWEST INC 9/27/2019 1.700% 9/27/202406652CHB0249,000.00NA 9/12/2019 9/27/2019249,000.00 1.70 256,926.41BANKWEST INCUINTA BANK 10/16/2019 1.700% 10/16/2024903572DX0247,000.00NA 10/4/2019 10/16/2019247,000.00 1.70 254,817.97UINTA BANKMUTUALBANK 10/22/2019 1.700% 10/22/202462844AAP2249,000.00NA 10/4/2019 10/22/2019249,000.00 1.70 256,934.73MUTUALBANKFIRST BANK OF NEBRASKA 10/30/2019 1.700% 10/30/202432116PAM0249,000.00NA 10/9/2019 10/30/2019249,000.00 1.70 256,834.32FIRST BANK OF NEBRASKAENTERPRISE BANK & TRUST 11/8/2019 1.800% 11/8/202429367SJQ8249,000.00NA 10/22/2019 11/8/2019249,000.00 1.80 257,672.67ENTERPRISE BANK & TRUSTTRIAD BANK 11/8/2019 1.800% 11/8/202489579NCB7249,000.00NA 11/4/2019 11/8/2019249,000.00 1.80 257,672.67TRIAD BANKMAINE SAVINGS FCU 11/8/2019 1.900% 11/8/2024560507AN5245,000.00NA 2/3/2020 2/5/2020247,305.45 1.69 254,297.30MAINE SAVINGS FCUCOMMERCIAL BANK 11/13/2019 1.750% 11/13/2024201282JB7249,000.00NA 10/31/2019 11/13/2019249,000.00 1.75 257,320.55COMMERCIAL BANK ALMA MICOMMUNITY STATE BANK IL 3/2/2020 1.550% 12/2/202420404YCF0249,000.00NA 2/13/2020 3/2/2020249,000.00 1.55 255,711.66COMMUNITY STATE BANK ILCOMMUNITY BANK TEXAS 12/4/2019 1.800% 12/4/2024204161BJ1249,000.00NA 11/20/2019 12/4/2019249,000.00 1.80 257,707.50COMMUNITY BANK TEXASBANK FORWARD 12/18/2019 1.750% 12/18/2024062163BN9249,000.00NA 12/5/2019 12/18/2019249,000.00 1.75 257,409.67BANK FORWARDFREEDOM FINANCIAL BANK 2/14/2020 1.550% 2/14/202535637RDC8249,000.00NA 2/6/2020 2/14/2020249,000.00 1.55 255,801.86FREEDOM FINANCIAL BANKFIRST NATL BANK MICHIGAN 2/14/2020 1.650% 2/14/202532114VBT3249,000.00NA 2/4/2020 2/14/2020249,000.00 1.65 256,643.67FIRST NATL BANK MICHIGANAMERICAN STATE BANK IA 2/21/2020 1.600% 2/21/2025029728BC5249,000.00NA 2/6/2020 2/21/2020249,000.00 1.60 256,263.25AMERICAN STATE BANK IABELL BANK CORP 2/27/2020 1.600% 2/27/202507815AAZ0249,000.00NA 2/10/2020 2/27/2020249,000.00 1.60 256,297.97BELL BANK CORPAMERICAN EAGLE BANK IL 2/28/2020 1.600% 2/28/202502554BCZ2249,000.00NA 2/18/2020 3/2/2020249,000.00 1.60 256,303.77AMERICAN EAGLE BANK ILHORIZON BANK WAVERLY NE 2/28/2020 1.550% 2/28/202544042TBX1249,000.00NA 2/6/2020 2/28/2020249,000.00 1.55 255,878.14HORIZON BANK WAVERLY NEFNB OF ALBANY 2/28/2020 1.600% 2/28/202532117WAN2249,000.00NA 2/25/2020 2/28/2020249,000.00 1.60 256,303.77FNB OF ALBANYIOWA STATE BANK 3/5/2020 1.500% 3/5/202546256YBF5248,000.00NA 2/24/2020 3/5/2020248,000.00 1.50 254,277.60IOWA STATE BANKACCESS BANK OMAHA NE 3/13/2020 1.600% 3/13/202500435JBH5249,000.00NA 2/27/2020 3/13/2020249,000.00 1.60 256,213.04ACCESS BANK OMAHA NEMCHENRY SAVINGS BANK 3/13/2020 1.550% 3/13/202558117WAG2249,000.00NA 2/25/2020 3/13/2020249,000.00 1.55 255,783.18MCHENRY SAVINGS BANKFNB BANK INC/ROMNEY 3/18/2020 1.150% 3/18/202530257JAR6249,000.00NA 3/2/2020 3/18/2020249,000.00 1.15 252,357.39FNB BANK INC/ROMNEYHARDIN COUNTY BANK 3/27/2020 1.000% 3/27/2025411822CN7249,000.00NA 3/9/2020 3/27/2020249,000.00 1.00 251,077.25HARDIN COUNTY BANKBANK OF ROMNEY 3/27/2020 1.150% 3/27/2025064657BB4249,000.00NA 3/2/2020 3/27/2020249,000.00 1.15 252,380.97BANK OF ROMNEYSAN FRANCISCO CREDIT UNION 3/27/2020 1.100% 3/27/202579772FAF3249,000.00NA 3/10/2020 3/27/2025249,000.00 1.10 251,946.40SAN FRANCISCO CREDIT UNIONCENTRAL BANK 3/27/2020 1.000% 3/27/2025152577AZ5249,000.00NA 3/11/2020 3/27/2020249,000.00 1.00 251,077.25CENTRAL BANKKNOXVILLE TVA EMPL CR UNION 3/31/2020 1.000% 3/31/2025499724AM4249,000.00NA 3/11/2020 3/31/2020249,000.00 1.00 250,742.45KNOXVILLE TVA EMPL CREDIT UNIONCENTERSTATE BANK 3/30/2020 1.000% 3/31/202515201QCJ4248,000.00NA 3/10/2020 3/30/2020248,000.00 1.00 249,732.57CENTERSTATE BANKGOLD COAST BANK 4/15/2020 1.300% 4/15/202538058KEF9249,000.00NA 3/31/2020 4/15/2020249,000.00 1.30 253,575.53GOLD COAST BANKSYNCHRONY BANK 4/17/2020 1.450% 4/17/202587164WZS0248,000.00NA 4/6/2020 4/17/2020248,000.00 1.45 253,873.23SYNCHRONY BANKSTATE BANK OF INDIA 4/29/2020 1.600% 4/29/2025856285TF8248,000.00NA 4/13/2020 4/29/2020248,000.00 1.60 255,255.57STATE BANK OF INDIABELMONT BANK & TRUST 4/30/2020 1.300% 4/30/202508016PDP1249,000.00NA 4/3/2020 4/30/2020249,000.00 1.30 253,456.91BELMONT BANK & TRUSTPage 4 of 142021/11/16 City Council Post Agenda Page 44 of 141 City of Chula Vista Market Values as of: 9/30/2021Current InvestmentsDescription DatedDate Coupon MaturityCUSIPParS&PMdysTradeDateSettlementDate Book Value YTMBNY Market Value 1IssuerM1 BANK 5/8/2020 1.000% 5/8/202555316CAY2248,000.00NA 4/27/2020 5/8/2020248,000.00 1.00 249,782.56M1 BANKCERTIFICATE OF DEPOSIT SUBTOTAL34,506,000.0034,508,305.45 35,398,814.89COMMERCIAL PAPER SUBTOTAL0.000.00 0.00JOHNSON & JOHNSON 3/3/2017 2.250% 3/3/2022478160CD44,000,000.00AAA 8/10/2018 8/14/20183,927,409.77 2.79 4,027,640.00JOHNSON & JOHNSONAMERICAN EXPRESS CREDIT 3/3/2017 2.700% 3/3/20220258M0EG03,000,000.00A- 8/10/2018 8/14/20182,950,375.28 3.20 3,024,450.00AMERICAN EXPRESS COUS BANCORP 3/2/2012 3.000% 3/15/202291159HHC73,000,000.00A+ 8/10/2018 8/14/20182,983,027.74 3.17 3,031,020.00US BANCORPMUFG UNION BANK 3/7/2019 3.150% 4/1/202290520EAH41,245,000.00A 7/15/2019 7/18/20191,270,580.80 2.34 1,260,139.20MUFG UNION BANKGLAXOSMITHKLINE 5/9/2012 2.850% 5/8/2022377373AD73,000,000.00A 3/12/2019 3/15/20193,003,447.00 2.81 3,046,110.00GLAXOSMITHKLINE CAPITALQUALCOMM INC 5/20/2015 3.000% 5/20/2022747525AE32,595,000.00A- 3/4/2019 3/6/20192,583,984.23 3.14 2,639,400.45QUALCOMM INCAMERICAN HONDA FINANCE 6/27/2019 2.200% 6/27/202202665WCY52,500,000.00A- 1/14/2020 1/16/20202,522,150.00 1.83 2,537,000.00AMERICAN HONDA FINANCEUNITED HEALTH 7/23/2015 3.350% 7/15/202291324PCN03,000,000.00A+ 9/10/2018 9/13/20183,012,282.41 3.24 3,071,700.00UNITED HEALTHPNC BANK 7/28/2017 2.450% 7/28/202269353RFE34,000,000.00A 10/15/2018 10/17/20183,848,511.48 3.53 4,066,840.00PNC BANK NAPACCAR FINANCIAL 8/10/2017 2.300% 8/10/202269371RN772,500,000.00A+ 8/13/2019 8/15/20192,518,000.00 2.05 2,543,600.00PACCAR FINANCIALPROCTOR & GAMBLE 8/11/2017 2.150% 8/11/2022742718EU93,000,000.00AA- 10/25/2018 10/29/20182,884,787.82 3.24 3,051,540.00PROCTOR & GAMBLE COESTEE LAUDER CO 8/2/2012 2.350% 8/15/202229736RAE0250,000.00A+ 1/23/2020 1/27/2020253,905.00 1.72 254,325.00ESTEE LAUDER COCHARLES SCHWAB CORP 8/27/2012 3.225% 9/1/2022808513AG02,376,000.00A 1/14/2020 1/16/20202,462,391.36 1.80 2,438,536.32CHARLES SCHWAB CORPTOYOTA MOTOR CREDIT 9/8/2017 2.150% 9/8/202289236TEC51,500,000.00A+ 8/30/2019 9/4/20191,514,085.00 1.83 1,527,600.00TOYOTA MOTOR CORPWALT DISNEY COMPANY 9/15/2019 3.000% 9/15/2022254687CM61,095,000.00BBB+ 1/27/2020 1/29/20201,133,116.95 1.64 1,123,470.00THE WALT DISNEY COMPANY (TWDC)JP MORGAN CHASE 9/24/2012 3.250% 9/23/202246625HJE12,530,000.00A- 1/27/2020 1/29/20202,626,443.60 1.77 2,604,382.00JP MORGAN CHASEPACCAR FINANCIAL 9/26/2019 2.000% 9/26/202269371RQ331,000,000.00A+ 5/4/2020 5/6/20201,019,963.31 1.15 1,018,370.00PACCAR FINANCIALUNITED PARCEL SERVICE 9/27/2012 2.450% 10/1/2022911312AQ93,750,000.00A- 10/25/2018 10/29/20183,624,712.50 3.37 3,831,675.00UNITED PARCEL SERVICE INCUNITED HEALTH 10/25/2017 2.375% 10/15/202291324PDD12,504,000.00A+ 7/25/2019 7/29/20192,516,845.52 2.21 2,560,390.08UNITED HEALTHCHUBB INA HOLDINGS INC 11/3/2015 2.875% 11/3/202200440EAU12,500,000.00A 1/23/2020 1/27/20202,569,175.00 1.78 2,557,450.00ACE INA HOLDINGSAMERICAN HONDA FINANCE 11/16/2017 2.600% 11/16/202202665WCA7474,000.00A- 7/25/2019 7/29/2019479,232.96 2.25 485,726.76AMERICAN HONDA FINANCEWALT DISNEY COMPANY 11/30/2012 2.350% 12/1/202225468PCW41,500,000.00BBB+ 9/10/2019 9/12/20191,519,558.43 1.93 1,534,905.00TWDC ENTERPRISES 18 CORPCOOPERATIVE RABOBANK NY 1/10/2018 2.750% 1/10/202321688AAL62,500,000.00A+ 3/25/2019 3/28/20192,485,700.00 2.91 2,577,350.00COOPERATIVE RABOBANK NYNIKE INC 4/26/2013 2.250% 5/1/2023654106AC71,200,000.00AA- 7/26/2019 7/30/20191,206,456.00 2.09 1,231,560.00NIKE INCBP CAPITAL MARKETS 11/10/2018 2.750% 5/10/202310373QAL43,490,000.00A- 6/4/2019 6/6/20193,510,940.00 2.59 3,622,410.60BP CAPITAL MARKETS AMERICALOEWS CORP 5/7/2013 2.625% 5/15/2023540424AQ11,500,000.00A 2/5/2020 2/7/20201,538,700.00 1.74 1,546,080.00LOEWS CORPSIMON PROPERTY GROUP LP 12/11/2017 2.750% 6/1/2023828807DD62,000,000.00A- 1/9/2020 1/13/20202,050,240.00 1.92 2,064,660.00SIMON PROPERTY GROUP LPJOHN DEERE 6/7/2018 3.450% 6/7/202324422EUH02,000,000.00A 2/6/2020 2/10/20202,111,060.00 1.72 2,107,020.00JOHN DEERE CAPITAL CORPGILEAD SCIENCES 9/20/2016 2.500% 9/1/2023375558BL63,092,000.00BBB+ 6/3/2019 6/5/20193,086,640.60 2.54 3,204,085.00GILEAD SCIENCESCUMMINS INC 9/24/2013 3.650% 10/1/2023231021AR73,500,000.00A+ 7/15/2019 7/18/20193,689,081.20 2.22 3,696,595.00CUMMINS INCCATERPILLAR 12/7/2018 3.650% 12/7/202314913Q2S73,700,000.00A 6/4/2019 6/6/20193,870,829.00 2.56 3,959,037.00CATERPILLAR FINL GEORGIA-PACIFIC 12/11/2003 8.000% 1/15/2024373298CF3320,000.00A+ 7/24/2019 7/26/2019395,206.40 2.42 373,132.80GEORGIA-PACIFICJOHN DEERE 6/7/2019 2.600% 3/7/202424422EUX53,000,000.00A 5/1/2020 5/5/20203,154,993.53 1.22 3,148,320.00JOHN DEERE CAPITAL CORPUNILEVER CAPITAL 5/5/2017 2.600% 5/5/2024904764AX51,500,000.00A+ 2/4/2020 2/6/20201,550,235.00 1.75 1,572,435.00UNILEVER CAPITALUNILEVER CAPITAL 5/5/2017 2.600% 5/5/2024904764AX52,000,000.00A+ 2/6/2020 2/10/20202,063,700.00 1.79 2,096,580.00UNILEVER CAPITALAPPLE INC 5/6/2014 3.450% 5/6/2024037833AS9250,000.00AA+ 1/31/2020 2/4/2020268,607.50 1.63 268,557.50APPLE INCAPPLE INC 5/11/2017 2.850% 5/11/2024037833CU2650,000.00AA+ 2/5/2020 2/7/2020679,640.00 1.69 686,127.00APPLE INCTEXAS INSTRUMENTS 5/4/2017 2.625% 5/15/2024882508BB91,000,000.00A+ 7/16/2019 7/19/20191,015,040.00 2.28 1,048,330.00TEXAS INSTRUMENTSBNY MELLON 5/7/2014 3.400% 5/15/202406406HCV9600,000.00A 5/4/2020 5/6/2020647,702.11 1.36 642,078.00BANK OF NEW YORK MELLON CORPIBM CORP 5/15/2019 3.000% 5/15/2024459200JY83,000,000.00A- 7/14/2021 7/16/20213,201,589.22 0.60 3,181,920.00IBM CORPUNITED HEALTH 7/25/2019 2.375% 8/15/202491324PDR03,000,000.00A+ 7/9/2021 7/13/20213,164,611.52 0.58 3,142,380.00UNITED HEALTHEXXON MOBIL CO 8/16/2019 2.019% 8/16/202430231GBC51,000,000.00AA- 6/28/2021 6/30/20211,042,229.78 0.65 1,040,030.00EXXON MOBIL COAMAZON.COM INC 2/22/2018 2.800% 8/22/2024023135AZ9226,000.00AA 1/14/2020 1/16/2020234,784.62 1.88 239,460.56AMAZON.COM INCBURLINGTON NORTH SANTA FE 8/18/2014 3.400% 9/1/202412189LAT81,000,000.00AA- 1/14/2020 1/16/20201,063,990.00 1.87 1,073,870.00BURLINGTON NORTH SANTA FEPAYPAL HOLDING 9/26/2019 2.400% 10/1/202470450YAC7950,000.00A- 6/28/2021 6/30/20211,002,643.56 0.67 998,146.00PAYPAL HOLDINGPage 5 of 142021/11/16 City Council Post Agenda Page 45 of 141 City of Chula Vista Market Values as of: 9/30/2021Current InvestmentsDescription DatedDate Coupon MaturityCUSIPParS&PMdysTradeDateSettlementDate Book Value YTMBNY Market Value 1IssuerHERSHEY COMPANY 10/31/2019 2.050% 11/15/2024427866BC1677,000.00A 1/14/2020 1/16/2020682,504.01 1.87 704,628.37HERSHEY COMPANYPACCAR FINANCIAL 2/6/2020 1.800% 2/6/202569371RQ661,000,000.00A+ 7/29/2021 8/2/20211,039,501.74 0.66 1,029,080.00PACCAR FINANCIALWW GRAINGER INC 2/26/2020 1.850% 2/15/2025384802AE4580,000.00A+ 7/23/2021 7/27/2021602,805.02 0.70 597,614.60WW GRAINGER INCCORPORATE NOTE SUBTOTAL95,054,000.0096,583,416.97 98,087,757.24FFCB10/19/2018 3.000% 10/19/20213133EJK243,000,000.00AA+ 10/26/2018 10/29/20183,008,203.24 2.90 3,004,410.00FED FARM CREDITFFCB1/21/2020 1.600% 1/21/20223133ELHR82,000,000.00AA+ 1/13/2020 1/21/20202,000,000.00 1.60 2,009,260.00FED FARM CREDITFAMCA6/21/2019 1.950% 6/21/202231422BGP91,000,000.00NR 7/26/2019 7/30/20191,001,250.49 1.91 1,013,520.00FARMER MACFHLB8/15/2013 3.125% 9/9/2022313383WD93,000,000.00AA+ 10/26/2018 10/30/20183,018,561.00 2.95 3,085,320.00FED HOME LN BANKFNMA10/6/2017 2.000% 10/5/20223135G0T783,000,000.00AA+ 10/29/2018 10/30/20182,894,940.00 2.95 3,057,990.00FANNIE MAEFFCB8/14/2019 1.600% 8/14/20233133EKZK52,719,000.00AA+ 8/21/2019 8/22/20192,728,063.74 1.51 2,784,990.13FED FARM CREDITFAMCA9/26/2019 1.740% 9/26/202431422BMD94,000,000.00NR 10/28/2019 10/31/20193,997,528.13 1.75 4,140,440.00FARMER MACFFCB10/17/2016 1.820% 10/17/20243133EGYR01,000,000.00AA+ 2/5/2020 2/6/20201,013,630.00 1.52 1,036,850.00FED FARM CREDITFFCB11/1/2019 1.650% 11/1/20243133EK4Y93,000,000.00AA+ 2/6/2020 2/7/20203,017,700.00 1.52 3,095,430.00FED FARM CREDITFEDERAL AGENCY BOND/NOTE SUBTOTAL22,719,000.0022,679,876.60 23,228,210.13U.S. TREASURY NOTE SUBTOTAL0.000.00 0.00CALIFORNIA BABS 12/1/2010 5.700% 11/1/202113063BJA13,870,000.00AA- 11/30/2018 12/4/20184,131,225.00 3.25 3,886,292.70STATE OF CALIFORNIAUNIV OF CALIFORNIA 4/20/2016 2.046% 5/15/202291412GD69200,000.00AA 5/12/2020 5/14/2020202,940.00 1.30 202,348.00UNIV OF CALIFORNIACITY OF OXNARD FIN AUTH 12/10/2019 2.063% 6/1/2022691875CZ9250,000.00AA 11/21/2019 12/10/2019250,000.00 2.06 252,607.50CITY OF OXNARD FINANCING AUTHLAKE TAHOE UNIFIED SCH DIST 5/26/2015 4.000% 8/1/2022511012MS2530,000.00A1 5/4/2020 5/6/2020564,699.10 1.03 546,504.20LAKE TAHOE UNIFIED SCHOOL DISTLOS ANGELES CNTY REDEV REF 8/25/2016 2.000% 9/1/202254465AGN61,000,000.00AA 3/16/2020 3/18/20201,019,030.00 1.21 1,015,690.00LOS ANGELES CNTY REDEV REF TARBHESPERIA CMNTY REDEV AGY 10/2/2018 3.125% 9/1/202242806KAR41,500,000.00AA 5/26/2020 6/5/20201,563,300.00 1.21 1,531,095.00HESPERIA CMNTY REDEV AGYBAY AREA CA TOLL AUTH 9/26/2019 2.184% 4/1/2023072024WN82,500,000.00AA 9/23/2019 9/30/20192,509,850.00 2.07 2,571,225.00BAY AREA CA TOLL AUTHUNIV OF CALIFORNIA 9/28/2017 2.519% 5/15/202391412G2U82,000,000.00AA- 10/30/2019 11/1/20192,043,540.00 1.88 2,067,580.00UNIV OF CALIFORNIACALIFORNIA HEALTH FAC FIN 11/25/2019 1.970% 6/1/202313032UVA31,000,000.00AA- 11/20/2019 11/25/20191,000,000.00 1.97 1,026,330.00CALIFORNIA HEALTH FACILITY FIN AUTHCITY OF ONTARIO CA 5/21/2020 2.216% 6/1/202368304FAC0200,000.00AA 5/15/2020 5/21/2020203,506.00 1.62 203,372.00CITY OF ONTARIO CASTHRN PUB PWR AUTH-B 3/26/2014 3.458% 7/1/202384247PHY03,960,000.00AA- 12/12/2018 12/14/20184,028,389.20 3.05 4,166,078.40SOUTHERN CA PUBLIC POWER AUTHGARDEN GROVE UNIFIED SD 10/16/2019 1.926% 8/1/2023365298Y44245,000.00AA- 9/25/2019 10/16/2019245,000.00 1.93 251,181.35GARDEN GROVE UNIFIED SDPOWAY UNIFIED SCHOOL DIST 10/16/2019 1.992% 8/1/2023738850SW71,000,000.00AA- 9/27/2019 10/16/20191,000,000.00 1.99 1,023,300.00POWAY UNIFIED SCHOOL DISTCOACHELLA VALLEY USD 10/17/2019 1.899% 8/1/2023189849MF6555,000.00AA 10/4/2019 10/17/2019555,000.00 1.90 568,020.30COACHELLA VALLEY USDSAN RAFAEL ELEM SCH DIST 11/13/2019 1.865% 8/1/2023799306QJ7980,000.00AA 11/1/2019 11/13/2019980,000.00 1.87 1,004,186.40SAN RAFAEL ELEM SCH DISTWEST CONTRA COSTA USD 5/12/2020 1.569% 8/1/20239523472D3500,000.00AA- 5/5/2020 5/12/2020500,000.00 1.57 510,485.00WEST CONTRA COSTA USDPOMONA PENSN OBLG 8/20/2020 4.000% 8/1/202373208PBD2500,000.00AA- 10/15/2020 10/19/2020541,065.00 1.00 527,480.00POMONA PENSION OBLGSTATE OF CALIFORNIA 10/26/2017 2.250% 10/1/202313063DDG02,500,000.00AA- 11/30/2018 12/5/20182,401,525.00 3.14 2,592,425.00STATE OF CALIFORNIASTATE OF CALIFORNIA 10/26/2017 2.250% 10/1/202313063DDG04,000,000.00AA- 10/29/2018 10/31/20183,848,480.00 3.09 4,147,880.00STATE OF CALIFORNIACALIFORNIA STATE UNIVERSITY 2/27/2020 1.557% 11/1/202313077DKB7400,000.00AA- 2/6/2020 2/27/2020400,000.00 1.56 409,340.00CALIFORNIA STATE UNIVERSITYBAKERSFIELD SCHOOL DISTRICT 3/29/2017 5.500% 11/1/2023057507KL8335,000.00A+ 5/4/2020 5/6/2020385,524.70 1.08 369,381.05BAKERSFIELD SCHOOL DISTRICTSTATE OF CALIFORNIA 4/4/2019 3.000% 4/1/202413063DLZ93,000,000.00AA- 7/26/2019 7/30/20193,125,010.00 2.06 3,186,420.00STATE OF CALIFORNIACITY OF RIVERSIDE PENSN OBLG 6/11/2020 2.107% 6/1/2024769036BL7250,000.00AA 6/5/2020 6/11/2020250,000.00 2.11 257,642.50CITY OF RIVERSIDE PENSN OBLGCENTRAL UNIFIED SCHOOL DIST 6/18/2014 5.000% 7/1/202415276PAV1795,000.00AA 4/28/2020 4/30/2020916,786.05 1.22 898,389.75CENTRAL UNIFIED SCHOOL DISTRICTSAN RAFAEL ELEM SCH DIST 11/13/2019 1.965% 8/1/2024799306QK41,200,000.00AA 11/1/2019 11/13/20191,200,000.00 1.97 1,240,296.00SAN RAFAEL ELEM SCH DISTSANTA MONICA-MALIBU USD 11/6/2019 1.719% 8/1/2024802498UH6250,000.00AA+ 10/8/2019 11/6/2019250,000.00 1.72 258,030.00SANTA MONICA-MALIBU USDGILROY UNIFIED SD 10/30/2019 1.833% 8/1/2024376087FZ0500,000.00AA- 10/9/2019 10/31/2019500,000.00 1.83 516,515.00GILROY UNIFIED SDLONG BEACH CCD 10/23/2019 1.803% 8/1/2024542411NJ81,315,000.00AA 10/9/2019 10/23/20191,315,000.00 1.80 1,356,198.95LONG BEACH CCDCOACHELLA VALLEY USD 10/17/2019 1.999% 8/1/2024189849MG4365,000.00AA 10/9/2019 10/17/2019365,492.75 1.97 376,358.80COACHELLA VALLEY USDSAN BERNARDINO CCD 12/12/2019 2.044% 8/1/2024796720MY3700,000.00AA 11/21/2019 12/12/2019700,000.00 2.04 728,049.00SAN BERNARDINO CCDSAN BERNARDINO CCD 12/12/2019 2.044% 8/1/2024796720MG21,000,000.00AA 11/21/2019 12/12/20191,000,000.00 2.04 1,040,070.00SAN BERNARDINO CCDSONOMA CNTY JR COLLEGE DIST 11/12/2019 2.061% 8/1/2024835569GR91,000,000.00AA 10/23/2019 11/12/20191,000,000.00 2.06 1,040,260.00SONOMA CNTY JR COLLEGE DISTVAL VERDE UNIFIED SCH DIST 6/19/2020 1.654% 8/1/202491882RFU1215,000.00AA 6/10/2020 6/19/2020215,000.00 1.65 218,717.35VAL VERDE UNIFIED SCH DISTPage 6 of 142021/11/16 City Council Post Agenda Page 46 of 141 City of Chula Vista Market Values as of: 9/30/2021Current InvestmentsDescription DatedDate Coupon MaturityCUSIPParS&PMdysTradeDateSettlementDate Book Value YTMBNY Market Value 1IssuerOAK GROVE SCHOOL DISTRICT 6/25/2020 1.276% 8/1/2024671205Y63200,000.00AA 6/12/2020 6/25/2020200,000.00 1.28 202,816.00OAK GROVE SCHOOL DISTRICTCARSON REDEV AGY TAB 9/3/2020 1.188% 8/1/202414575TDY5600,000.00AA 8/12/2020 9/3/2020600,000.00 1.19 603,450.00CARSON REDEV AGY TABSANTA ANA CMNTY REDEV AGY 11/8/2018 3.683% 9/1/2024801096AS72,000,000.00AA 1/13/2020 1/17/20202,157,220.00 1.90 2,172,520.00SANTA ANA CMNTY REDEV AGYCALIFORNIA STATE UNIVERSITY 7/29/2021 0.563% 11/1/202413077DQC9450,000.00AA- 7/9/2021 7/29/2021450,000.00 0.56 448,078.50CALIFORNIA STATE UNIVERSITYSTATE OF CALIFORNIA 3/18/2015 4.000% 3/1/202513063CQS2750,000.00AA- 4/27/2020 4/29/2020845,032.50 1.29 842,865.00STATE OF CALIFORNIASAN FRANCISCO CTY/CNTY PORT 2/27/2020 1.894% 3/1/2025797679CC9255,000.00A 2/13/2020 2/27/2020255,000.00 1.89 261,290.85SAN FRANCISCO CITY/CNTY PORT COMMGARDENA PENSN OBLIG 11/24/2020 1.702% 4/1/2025365471AE1250,000.00AA- 11/20/2020 11/24/2020257,455.00 1.00 255,017.50GARDENA PENSN OBLIGCA STWD CMNTY DEV TRANS 10/8/2020 1.061% 6/1/202513079XBT21,000,000.00AA 9/23/2020 10/8/20201,000,000.00 1.06 989,910.00CA STWD CMNTY DEV TRANSCITY OF ONTARIO CA POB 5/21/2020 2.537% 6/1/202568304FAE61,000,000.00AA 5/20/2020 6/5/20201,027,770.00 1.95 1,031,560.00CITY OF ONTARIO CA POBCITY OF SAN BERNARDINO USD 9/24/2020 1.114% 8/1/2025796711G942,250,000.00AA 9/11/2020 9/24/20202,250,000.00 1.11 2,249,167.50CITY OF SAN BERNARDINO USDCOLTON UNIFIED SD 10/28/2020 1.052% 8/1/2025197036PL42,475,000.00AA 10/15/2020 10/28/20202,475,000.00 1.05 2,483,167.50COLTON UNIFIED SDCARPINTERIA UNIFIED SCH DIST 11/18/2020 1.100% 8/1/2025144393NA91,210,000.00AA- 10/28/2020 11/18/20201,212,758.80 1.05 1,196,798.90CARPINTERIA UNIFIED SCH DISTPOMONA PENSION OBLG 8/20/2020 4.000% 8/1/202573208PBF71,675,000.00AA- 9/14/2020 9/16/20201,878,964.75 1.41 1,832,433.25POMONA PENSION OBLGMUNICIPAL BOND SUBTOTAL52,730,000.0053,819,563.85 54,558,824.25IADB9/14/2017 1.750% 9/14/20224581X0CZ95,000,000.00AAA 8/10/2018 8/14/20184,794,949.30 2.82 5,074,100.00INTERAMER DEVSUPRANATIONAL SUBTOTAL5,000,000.004,794,949.30 5,074,100.00LOCAL AGENCY INVESTMENT FUND23,766,705.1523,766,705.15 23,763,702.49 SD COUNTY INVESTMENT POOL192,531,108.14192,531,108.14 193,358,991.91 POOLED INVESTMENTS SUBTOTAL216,297,813.29216,297,813.29 217,122,694.39 MONEY MARKET FUND105,915.44105,915.44 105,915.44PLACEMENT SERVICE DEPOSITS (CDARS)4,156,270.614,156,270.61 4,156,270.61ALL INVESTMENTSGRAND TOTAL435,243,242.91437,702,570.20 442,488,461.541 The Market Value for LAIF and San Diego County Investment Pool are calculated using the Market Value/Fair Value Factor provided by those agencies.Page 7 of 142021/11/16 City Council Post Agenda Page 47 of 141 City of Chula VistaActivity for the Quarter Ended September 30, 2021MATURITYSecurityTypeDesc Description DatedDate Coupon MaturityCUSIPParS & P TradeDate SettleDateBook Value YTM IssuerJul-21CERTIFICATE OF DEPOSIT ZIONS BANCORP 1/16/2020 1.650% 7/16/2021 98970LB85 247,000.00NA 1/13/2020 1/17/2020247,000.00 1.65ZIONS BANCORPCERTIFICATE OF DEPOSIT ESSA BANK & TRUST PA 1/29/2020 1.650% 7/29/2021 29667RSB0 247,000.00NA 1/13/2020 1/29/2020247,000.00 1.65ESSA BANK & TRUST PACERTIFICATE OF DEPOSIT FIRST NATIONAL 1/30/2020 1.700% 7/30/2021 32117BDW 249,000.00NA 1/14/2020 1/30/2020249,000.00 1.70FIRST NATIONAL BANK/DAMAAug-21MUNICIPAL BOND MT SAN ANTONIO CCD-B 8/1/2013 3.753% 8/2/2021 623040HF2 2,100,000.00AA 11/30/2018 12/5/20182,141,664.00 2.97MT SAN ANTONIO CCDMUNICIPAL BOND ACALANES SD 5/30/2013 2.381% 8/2/2021 004284B38 2,700,000.00AA 12/4/2018 12/6/20182,658,960.00 2.98ALCALANES UNION HSDCERTIFICATE OF DEPOSIT NORTHSIDE COMMUNITY 8/7/2019 1.900% 8/9/2021 667012KA5 249,000.00NA 8/1/2019 8/7/2019249,000.00 1.90NORTHSIDE COMMUNITY BANKCERTIFICATE OF DEPOSIT PIONEER BANK 2/14/2020 1.600% 8/16/2021 723605BT7 247,000.00NA 1/31/2020 2/14/2020247,000.00 1.60PIONEER BANKCERTIFICATE OF DEPOSIT SYNOVUS BANK 2/14/2020 1.600% 8/16/2021 87164DQL7 247,000.00NA 2/4/2020 2/14/2020247,000.00 1.60SYNOVUS BANKCORPORATE NOTE SAN DIEGO G & E 8/18/2011 3.000% 8/16/2021 797440BN3 1,986,000.00A 3/18/2019 3/20/20191,989,081.96 2.93SAN DIEGO G & ECERTIFICATE OF DEPOSIT KANSAS STATE BANK 8/23/2019 1.950% 8/23/202150116CCG2249,000.00NA 8/1/2019 8/23/2019249,000.00 1.95KANSAS STATE BANKCERTIFICATE OF DEPOSIT RIVERWIND BANK 8/21/2019 1.800% 8/23/202176951GAJ2249,000.00NA 8/12/2019 8/21/2019249,000.00 1.80RIVERWIND BANKCORPORATE NOTE NORTHERN TRUST CORP 8/22/2011 3.375% 8/23/2021665859AM63,000,000.00A+ 10/15/2018 10/17/20183,012,390.00 3.22NORTHERN TRSTCERTIFICATE OF DEPOSIT WAKEFIELD CO-OP BANK 2/25/2020 1.600% 8/25/2021 931047AP9 247,000.00NA 2/10/2020 2/25/2020247,000.00 1.60WAKEFIELD CO-OP BANKSep-21CORPORATE NOTE CATERPILLAR 9/7/2018 3.150% 9/7/2021 14913Q2N8 2,000,000.00A 10/15/2018 10/17/20181,997,720.00 3.19CATERPILLAR FINLCERTIFICATE OF DEPOSIT MAIN STREET BANK 9/6/2019 1.650% 9/8/2021 56035BBT2 249,000.00NA 8/27/2019 9/6/2019249,000.00 1.65MAIN STREET BANKCERTIFICATE OF DEPOSIT COMMUNITY FIRST BANK 9/12/2019 1.650% 9/13/2021 20368TCN8 249,000.00NA 9/3/2019 9/12/2019249,000.00 1.65COMMUNITY FIRST BANKCORPORATE NOTE TOYOTA MOTOR CREDIT 9/15/2011 3.400% 9/15/2021 89233P5F9 1,000,000.00A+ 9/10/2018 9/12/20181,008,320.00 3.11TOYOTA MOTOR CORPCORPORATE NOTE ORACLE CORP 7/7/2016 1.900% 9/15/2021 68389XBK0 1,000,000.00BBB+ 9/10/2018 9/12/2018967,460.00 3.04ORACLE CORPFEDERAL AGENCY BOND FFCB 9/17/2019 1.625% 9/17/2021 3133EKP67 4,500,000.00AA+ 9/10/2019 9/17/20194,496,580.00 1.66FED FARM CREDITTotal 21,015,000.00BUYSecurityTypeDesc Description DatedDate Coupon MaturityCUSIPParS & P TradeDate SettleDateBook Value YTM IssuerJul-21CORPORATE NOTEUNITED HEALTH7/25/2019 2.375% 8/15/2024 91324PDR0 3,000,000.00A+ 7/9/2021 7/13/20213,164,611.52 0.58UNITED HEALTHCORPORATE NOTEIBM CORP5/15/2019 3.000% 5/15/2024 459200JY8 3,000,000.00A- 7/14/2021 7/16/20213,201,589.22 0.60IBM CORPCORPORATE NOTEWW GRAINGER INC2/26/2020 1.850% 2/15/2025 384802AE4 580,000.00A+ 7/23/2021 7/27/2021602,805.02 0.70WW GRAINGER INCMUNICIPAL BONDCALIFORNIA STATE UNIV7/29/2021 0.563% 11/1/2024 13077DQC9 450,000.00AA- 7/9/2021 7/29/2021450,000.000.56 CALIFORNIA STATE UNIVAug-21CORPORATE NOTEPACCAR FINANCIAL2/6/2020 1.800% 2/6/2025 69371RQ66 1,000,000.00A+ 7/29/2021 8/2/20211,039,501.740.66 PACCAR FINANCIALSep-21Total 8,030,000.00Page 8 of 142021/11/16 City Council Post Agenda Page 48 of 141 City of Chula VistaToday's Date: 9/30/2021Portfolio Maturity Distribution0 - 182 Days 183 - 365 Days 366 - 730 Days 731 - 1095 Days 1096 - 1460 Days 1461 - 1825 DaysDescription PAR Maturity Days to Maturity Under 6 Months 6 - 12 Months 1 - 2 Years 2 - 3 Years 3 - 4 Years 4 - 5 Years ALLYA 2018-3 A3 14,243.57 1/17/2023 474 -$ -$ 14,243.57$ -$ -$ -$ FORDF 2019-1 A 1,500,000.00 3/15/2024 897 -$ -$ -$ 1,500,000.00$ -$ -$ CAPITAL ONE 2019-A2 A2 2,000,000.00 8/15/2024 1050 -$ -$ -$ 2,000,000.00$ -$ -$ CITIBANK 2018-A6 A6 560,000.00 12/7/2024 1164 -$ -$ -$ -$ 560,000.00$ -$ WORLD OMNI 2018-D A4 600,000.00 12/16/2024 1173 -$ -$ -$ -$ 600,000.00$ -$ ASSET-BACKED SECURITY-$ -$ 14,243.57$ 3,500,000.00$ 1,160,000.00$ -$ ALLY BANK 246,000.00 11/15/2021 46 246,000.00$ -$ -$ -$ -$ -$ BUCKEYE COMMUNITY BANK 249,000.00 12/3/2021 64 249,000.00$ -$ -$ -$ -$ -$ BMW BANK OF NA 246,000.00 12/14/2021 75 246,000.00$ -$ -$ -$ -$ -$ CONNECTONE BANK 249,000.00 12/28/2021 89 249,000.00$ -$ -$ -$ -$ -$ ENCORE BANK 249,000.00 1/19/2022 111 249,000.00$ -$ -$ -$ -$ -$ RAYMOND JAMES BANK 246,000.00 1/25/2022 117 246,000.00$ -$ -$ -$ -$ -$ FARMERS & MERCHANTS BANK 249,000.00 2/14/2022 137 249,000.00$ -$ -$ -$ -$ -$ STATE BANK OF LIZTON IN 249,000.00 2/14/2022 137 249,000.00$ -$ -$ -$ -$ -$ DOLLAR BANK FSB 246,000.00 2/18/2022 141 246,000.00$ -$ -$ -$ -$ -$ THIRD FED SAV&LN 246,000.00 2/22/2022 145 246,000.00$ -$ -$ -$ -$ -$ FNB OF MCGREGOR TX 249,000.00 2/22/2022 145 249,000.00$ -$ -$ -$ -$ -$ NEXTIER BANK 249,000.00 2/22/2022 145 249,000.00$ -$ -$ -$ -$ -$ FIRST COMMERCIAL BANK MS 249,000.00 2/22/2022 145 249,000.00$ -$ -$ -$ -$ -$ CITIZENS N/B BLUFFTON 248,000.00 2/22/2022 145 248,000.00$ -$ -$ -$ -$ -$ SB ONE BANK 248,000.00 2/28/2022 151 248,000.00$ -$ -$ -$ -$ -$ FARMERS BANK & TRUST 249,000.00 2/28/2022 151 249,000.00$ -$ -$ -$ -$ -$ INDEPENDENT BANK MEMPHIS 249,000.00 3/7/2022 158 249,000.00$ -$ -$ -$ -$ -$ FIRST STATE BANK BOISE 249,000.00 3/11/2022 162 249,000.00$ -$ -$ -$ -$ -$ SALLIE MAE BANK 246,000.00 3/21/2022 172 246,000.00$ -$ -$ -$ -$ -$ CAROLINA TRUST BANK 249,000.00 3/21/2022 172 249,000.00$ -$ -$ -$ -$ -$ STATE BANK OF TEXAS 249,000.00 3/21/2022 172 249,000.00$ -$ -$ -$ -$ -$ UNITED BANKERS BANK 249,000.00 4/25/2022 207 -$ 249,000.00$ -$ -$ -$ -$ LIVE OAK BANK 249,000.00 5/9/2022 221 -$ 249,000.00$ -$ -$ -$ -$ MERRICK BANK 249,000.00 6/10/2022 253 -$ 249,000.00$ -$ -$ -$ -$ FLAGSTAR BANK 246,000.00 6/13/2022 256 -$ 246,000.00$ -$ -$ -$ -$ HANMI BANK 249,000.00 7/19/2022 292 -$ 249,000.00$ -$ -$ -$ -$ TIAA FSB246,000.00 8/4/2022 308 -$ 246,000.00$ -$ -$ -$ -$ CIT BANK247,000.00 8/23/2022 327 -$ 247,000.00$ -$ -$ -$ -$ 1ST SECURITY BANK 249,000.00 8/30/2022 334 -$ 249,000.00$ -$ -$ -$ -$ FIRST SOURCE BANK 247,000.00 9/12/2022 347 -$ 247,000.00$ -$ -$ -$ -$ CONGRESSIONAL BANK 247,000.00 9/26/2022 361 -$ 247,000.00$ -$ -$ -$ -$ PLAINSCAPITAL BANK 247,000.00 10/11/2022 376 -$ -$ 247,000.00$ -$ -$ -$ ENERBANK USA 249,000.00 10/31/2022 396 -$ -$ 249,000.00$ -$ -$ -$ DISCOVER BANK 245,000.00 11/1/2022 397 -$ -$ 245,000.00$ -$ -$ -$ FIRST BANK FINANCIAL 249,000.00 11/7/2022 403 -$ -$ 249,000.00$ -$ -$ -$ MORGAN STANLEY 245,000.00 11/8/2022 404 -$ -$ 245,000.00$ -$ -$ -$ FSB OF DEQUEEN 249,000.00 11/30/2022 426 -$ -$ 249,000.00$ -$ -$ -$ LUANA SAVINGS BANK 247,000.00 12/21/2022 447 -$ -$ 247,000.00$ -$ -$ -$ VERUS BANK 249,000.00 12/28/2022 454 -$ -$ 249,000.00$ -$ -$ -$ WELLS FARGO NATL BANK 249,000.00 12/30/2022 456 -$ -$ 249,000.00$ -$ -$ -$ MARTHAS VINEYARD SB 249,000.00 1/23/2023 480 -$ -$ 249,000.00$ -$ -$ -$ UNITY BANK NJ 249,000.00 1/23/2023 480 -$ -$ 249,000.00$ -$ -$ -$ VIRGINIA PARTNERS BANK 249,000.00 1/27/2023 484 -$ -$ 249,000.00$ -$ -$ -$ PROMISEONE BANK 249,000.00 2/14/2023 502 -$ -$ 249,000.00$ -$ -$ -$ SERVISFIRST BANK 249,000.00 2/21/2023 509 -$ -$ 249,000.00$ -$ -$ -$ BANK OF PERRY COUNTY 249,000.00 2/21/2023 509 -$ -$ 249,000.00$ -$ -$ -$ Page 9 of 142021/11/16 City Council Post Agenda Page 49 of 141 City of Chula VistaToday's Date: 9/30/2021Portfolio Maturity Distribution0 - 182 Days 183 - 365 Days 366 - 730 Days 731 - 1095 Days 1096 - 1460 Days 1461 - 1825 DaysDescription PAR Maturity Days to Maturity Under 6 Months 6 - 12 Months 1 - 2 Years 2 - 3 Years 3 - 4 Years 4 - 5 YearsPEOPLEFIRST BANK 249,000.00 3/6/2023 522 -$ -$ 249,000.00$ -$ -$ -$ PADUCAH BANK AND TRUST 249,000.00 3/13/2023 529 -$ -$ 249,000.00$ -$ -$ -$ FIRST CAROLINA BANK 249,000.00 3/24/2023 540 -$ -$ 249,000.00$ -$ -$ -$ STATE BANK OF REESEVILLE 249,000.00 4/12/2023 559 -$ -$ 249,000.00$ -$ -$ -$ MIDWEST COMMUNITY BANK 249,000.00 4/14/2023 561 -$ -$ 249,000.00$ -$ -$ -$ CADENCE BANK 248,000.00 4/17/2023 564 -$ -$ 248,000.00$ -$ -$ -$ EAGLEBANK 249,000.00 4/28/2023 575 -$ -$ 249,000.00$ -$ -$ -$ STEARNS BANK 247,000.00 5/10/2023 587 -$ -$ 247,000.00$ -$ -$ -$ FARMERS & MERCH SVGS BK 249,000.00 8/15/2023 684 -$ -$ 249,000.00$ -$ -$ -$ NEBRASKALAND NATIONAL BK 248,000.00 8/22/2023 691 -$ -$ 248,000.00$ -$ -$ -$ FIRSTIER BANK 249,000.00 8/23/2023 692 -$ -$ 249,000.00$ -$ -$ -$ AMERICAN COMMERCE BANK 249,000.00 8/23/2023 692 -$ -$ 249,000.00$ -$ -$ -$ CELTIC BANK 249,000.00 8/30/2023 699 -$ -$ 249,000.00$ -$ -$ -$ FIRST ST BANK BUXTON 249,000.00 9/5/2023 705 -$ -$ 249,000.00$ -$ -$ -$ NATIONAL BANK OF NY CITY 249,000.00 9/8/2023 708 -$ -$ 249,000.00$ -$ -$ -$ ABACUS FEDERAL SVGS BANK 249,000.00 9/12/2023 712 -$ -$ 249,000.00$ -$ -$ -$ FIRST SERVICE BANK 249,000.00 9/29/2023 729 -$ -$ 249,000.00$ -$ -$ -$ COMENITY CAPITAL 249,000.00 10/30/2023 760 -$ -$ -$ 249,000.00$ -$ -$ GOLDMAN SACHS 245,000.00 10/31/2023 761 -$ -$ -$ 245,000.00$ -$ -$ UBS BANK USA 249,000.00 11/7/2023 768 -$ -$ -$ 249,000.00$ -$ -$ BARCLAYS BANK 245,000.00 11/7/2023 768 -$ -$ -$ 245,000.00$ -$ -$ MORGAN STANLEY 245,000.00 11/8/2023 769 -$ -$ -$ 245,000.00$ -$ -$ CITIBANK NA 245,000.00 11/9/2023 770 -$ -$ -$ 245,000.00$ -$ -$ WELLS FARGO BANK NA 249,000.00 11/9/2023 770 -$ -$ -$ 249,000.00$ -$ -$ COMMERCIAL BANK 249,000.00 11/15/2023 776 -$ -$ -$ 249,000.00$ -$ -$ BANK NEW ENGLAND 249,000.00 11/20/2023 781 -$ -$ -$ 249,000.00$ -$ -$ BANK OF BARODA 245,000.00 11/30/2023 791 -$ -$ -$ 245,000.00$ -$ -$ MARLIN BUSINESS BANK 249,000.00 12/4/2023 795 -$ -$ -$ 249,000.00$ -$ -$ BAR HARBOR BANK & TRUST 249,000.00 12/29/2023 820 -$ -$ -$ 249,000.00$ -$ -$ NAHEOLA CREDIT UNION 248,000.00 1/10/2024 832 -$ -$ -$ 248,000.00$ -$ -$ MEDALLION BK UT 249,000.00 2/12/2024 865 -$ -$ -$ 249,000.00$ -$ -$ ROLLSTONE BANK & TRUST 247,000.00 2/12/2024 865 -$ -$ -$ 247,000.00$ -$ -$ PCSB BANK 249,000.00 2/21/2024 874 -$ -$ -$ 249,000.00$ -$ -$ BANK HAPOALIM 246,000.00 3/25/2024 907 -$ -$ -$ 246,000.00$ -$ -$ AXOS BANK 249,000.00 3/26/2024 908 -$ -$ -$ 249,000.00$ -$ -$ NICOLET NATIONAL BANK 249,000.00 3/28/2024 910 -$ -$ -$ 249,000.00$ -$ -$ LAKESIDE BANK 249,000.00 4/12/2024 925 -$ -$ -$ 249,000.00$ -$ -$ JEFFERSON BANK 249,000.00 4/15/2024 928 -$ -$ -$ 249,000.00$ -$ -$ PACIFIC WESTERN BANK 248,000.00 4/16/2024 929 -$ -$ -$ 248,000.00$ -$ -$ THOMASTON SAVINGS BANK 248,000.00 4/23/2024 936 -$ -$ -$ 248,000.00$ -$ -$ NORTHWEST BANK 249,000.00 4/30/2024 943 -$ -$ -$ 249,000.00$ -$ -$ FIRST FREEDOM BANK 249,000.00 4/30/2024 943 -$ -$ -$ 249,000.00$ -$ -$ UNITED REPUBLIC BANK 249,000.00 5/13/2024 956 -$ -$ -$ 249,000.00$ -$ -$ CAPITAL ONE NA 246,000.00 6/19/2024 993 -$ -$ -$ 246,000.00$ -$ -$ CAPITAL ONE BANK 246,000.00 6/19/2024 993 -$ -$ -$ 246,000.00$ -$ -$ LCA BANK CORP 247,000.00 6/28/2024 1002 -$ -$ -$ 247,000.00$ -$ -$ REVERE BANK 247,000.00 6/28/2024 1002 -$ -$ -$ 247,000.00$ -$ -$ CENTURY NEXT BANK 249,000.00 7/17/2024 1021 -$ -$ -$ 249,000.00$ -$ -$ CF BANK247,000.00 8/19/2024 1054 -$ -$ -$ 247,000.00$ -$ -$ FIRST RESOURCE BANK 249,000.00 8/21/2024 1056 -$ -$ -$ 249,000.00$ -$ -$ CALDWELL BANK & TRUST 247,000.00 8/23/2024 1058 -$ -$ -$ 247,000.00$ -$ -$ WASHINGTON FEDERAL 249,000.00 8/23/2024 1058 -$ -$ -$ 249,000.00$ -$ -$ Page 10 of 142021/11/16 City Council Post Agenda Page 50 of 141 City of Chula VistaToday's Date: 9/30/2021Portfolio Maturity Distribution0 - 182 Days 183 - 365 Days 366 - 730 Days 731 - 1095 Days 1096 - 1460 Days 1461 - 1825 DaysDescription PAR Maturity Days to Maturity Under 6 Months 6 - 12 Months 1 - 2 Years 2 - 3 Years 3 - 4 Years 4 - 5 YearsGENOA BANKING COMPANY 249,000.00 8/28/2024 1063 -$ -$ -$ 249,000.00$ -$ -$ MERCHANTS STATE BANK 247,000.00 8/30/2024 1065 -$ -$ -$ 247,000.00$ -$ -$ PREFERRED BANK 249,000.00 8/30/2024 1065 -$ -$ -$ 249,000.00$ -$ -$ PEOPLES BANK ROCK VALLEY 249,000.00 9/10/2024 1076 -$ -$ -$ 249,000.00$ -$ -$ ALMA BANK 249,000.00 9/11/2024 1077 -$ -$ -$ 249,000.00$ -$ -$ BANK OF OLD MONROE 249,000.00 9/18/2024 1084 -$ -$ -$ 249,000.00$ -$ -$ SPRING BANK 249,000.00 9/19/2024 1085 -$ -$ -$ 249,000.00$ -$ -$ ENTERPRISE BANK 247,000.00 9/27/2024 1093 -$ -$ -$ 247,000.00$ -$ -$ BANKWEST INC 249,000.00 9/27/2024 1093 -$ -$ -$ 249,000.00$ -$ -$ UINTA BANK 247,000.00 10/16/2024 1112 -$ -$ -$ -$ 247,000.00$ -$ MUTUALBANK 249,000.00 10/22/2024 1118 -$ -$ -$ -$ 249,000.00$ -$ FIRST BANK OF NEBRASKA 249,000.00 10/30/2024 1126 -$ -$ -$ -$ 249,000.00$ -$ ENTERPRISE BANK & TRUST 249,000.00 11/8/2024 1135 -$ -$ -$ -$ 249,000.00$ -$ TRIAD BANK 249,000.00 11/8/2024 1135 -$ -$ -$ -$ 249,000.00$ -$ MAINE SAVINGS FCU 245,000.00 11/8/2024 1135 -$ -$ -$ -$ 245,000.00$ -$ COMMERCIAL BANK 249,000.00 11/13/2024 1140 -$ -$ -$ -$ 249,000.00$ -$ COMMUNITY STATE BANK IL 249,000.00 12/2/2024 1159 -$ -$ -$ -$ 249,000.00$ -$ COMMUNITY BANK TEXAS 249,000.00 12/4/2024 1161 -$ -$ -$ -$ 249,000.00$ -$ BANK FORWARD 249,000.00 12/18/2024 1175 -$ -$ -$ -$ 249,000.00$ -$ FREEDOM FINANCIAL BANK 249,000.00 2/14/2025 1233 -$ -$ -$ -$ 249,000.00$ -$ FIRST NATL BANK MICHIGAN 249,000.00 2/14/2025 1233 -$ -$ -$ -$ 249,000.00$ -$ AMERICAN STATE BANK IA 249,000.00 2/21/2025 1240 -$ -$ -$ -$ 249,000.00$ -$ BELL BANK CORP 249,000.00 2/27/2025 1246 -$ -$ -$ -$ 249,000.00$ -$ AMERICAN EAGLE BANK IL 249,000.00 2/28/2025 1247 -$ -$ -$ -$ 249,000.00$ -$ HORIZON BANK WAVERLY NE 249,000.00 2/28/2025 1247 -$ -$ -$ -$ 249,000.00$ -$ FNB OF ALBANY 249,000.00 2/28/2025 1247 -$ -$ -$ -$ 249,000.00$ -$ IOWA STATE BANK 248,000.00 3/5/2025 1252 -$ -$ -$ -$ 248,000.00$ -$ ACCESS BANK OMAHA NE 249,000.00 3/13/2025 1260 -$ -$ -$ -$ 249,000.00$ -$ MCHENRY SAVINGS BANK 249,000.00 3/13/2025 1260 -$ -$ -$ -$ 249,000.00$ -$ FNB BANK INC/ROMNEY 249,000.00 3/18/2025 1265 -$ -$ -$ -$ 249,000.00$ -$ HARDIN COUNTY BANK 249,000.00 3/27/2025 1274 -$ -$ -$ -$ 249,000.00$ -$ BANK OF ROMNEY 249,000.00 3/27/2025 1274 -$ -$ -$ -$ 249,000.00$ -$ SAN FRANCISCO CREDIT UNION 249,000.00 3/27/2025 1274 -$ -$ -$ -$ 249,000.00$ -$ CENTRAL BANK 249,000.00 3/27/2025 1274 -$ -$ -$ -$ 249,000.00$ -$ KNOXVILLE TVA EMPL CR UNION 249,000.00 3/31/2025 1278 -$ -$ -$ -$ 249,000.00$ -$ CENTERSTATE BANK 248,000.00 3/31/2025 1278 -$ -$ -$ -$ 248,000.00$ -$ GOLD COAST BANK 249,000.00 4/15/2025 1293 -$ -$ -$ -$ 249,000.00$ -$ SYNCHRONY BANK 248,000.00 4/17/2025 1295 -$ -$ -$ -$ 248,000.00$ -$ STATE BANK OF INDIA 248,000.00 4/29/2025 1307 -$ -$ -$ -$ 248,000.00$ -$ BELMONT BANK & TRUST 249,000.00 4/30/2025 1308 -$ -$ -$ -$ 249,000.00$ -$ M1 BANK248,000.00 5/8/2025 1316 -$ -$ -$ -$ 248,000.00$ -$ CERTIFICATE OF DEPOSIT5,209,000.00$ 2,478,000.00$ 7,952,000.00$ 10,910,000.00$ 7,957,000.00$ -$ COMMERCIAL PAPER-$ -$ -$ -$ -$ -$ JOHNSON & JOHNSON 4,000,000.00 3/3/2022 154 4,000,000.00$ -$ -$ -$ -$ -$ AMERICAN EXPRESS CREDIT 3,000,000.00 3/3/2022 154 3,000,000.00$ -$ -$ -$ -$ -$ US BANCORP 3,000,000.00 3/15/2022 166 3,000,000.00$ -$ -$ -$ -$ -$ MUFG UNION BANK 1,245,000.00 4/1/2022 183 -$ 1,245,000.00$ -$ -$ -$ -$ GLAXOSMITHKLINE 3,000,000.00 5/8/2022 220 -$ 3,000,000.00$ -$ -$ -$ -$ QUALCOMM INC 2,595,000.00 5/20/2022 232 -$ 2,595,000.00$ -$ -$ -$ -$ AMERICAN HONDA FINANCE 2,500,000.00 6/27/2022 270 -$ 2,500,000.00$ -$ -$ -$ -$ UNITED HEALTH 3,000,000.00 7/15/2022 288 -$ 3,000,000.00$ -$ -$ -$ -$ PNC BANK 4,000,000.00 7/28/2022 301 -$ 4,000,000.00$ -$ -$ -$ -$ Page 11 of 142021/11/16 City Council Post Agenda Page 51 of 141 City of Chula VistaToday's Date: 9/30/2021Portfolio Maturity Distribution0 - 182 Days 183 - 365 Days 366 - 730 Days 731 - 1095 Days 1096 - 1460 Days 1461 - 1825 DaysDescription PAR Maturity Days to Maturity Under 6 Months 6 - 12 Months 1 - 2 Years 2 - 3 Years 3 - 4 Years 4 - 5 YearsPACCAR FINANCIAL 2,500,000.00 8/10/2022 314 -$ 2,500,000.00$ -$ -$ -$ -$ PROCTOR & GAMBLE 3,000,000.00 8/11/2022 315 -$ 3,000,000.00$ -$ -$ -$ -$ ESTEE LAUDER CO 250,000.00 8/15/2022 319 -$ 250,000.00$ -$ -$ -$ -$ CHARLES SCHWAB CORP 2,376,000.00 9/1/2022 336 -$ 2,376,000.00$ -$ -$ -$ -$ TOYOTA MOTOR CREDIT 1,500,000.00 9/8/2022 343 -$ 1,500,000.00$ -$ -$ -$ -$ WALT DISNEY COMPANY 1,095,000.00 9/15/2022 350 -$ 1,095,000.00$ -$ -$ -$ -$ JP MORGAN CHASE 2,530,000.00 9/23/2022 358 -$ 2,530,000.00$ -$ -$ -$ -$ PACCAR FINANCIAL 1,000,000.00 9/26/2022 361 -$ 1,000,000.00$ -$ -$ -$ -$ UNITED PARCEL SERVICE 3,750,000.00 10/1/2022 366 -$ -$ 3,750,000.00$ -$ -$ -$ UNITED HEALTH 2,504,000.00 10/15/2022 380 -$ -$ 2,504,000.00$ -$ -$ -$ CHUBB INA HOLDINGS INC 2,500,000.00 11/3/2022 399 -$ -$ 2,500,000.00$ -$ -$ -$ AMERICAN HONDA FINANCE 474,000.00 11/16/2022 412 -$ -$ 474,000.00$ -$ -$ -$ WALT DISNEY COMPANY 1,500,000.00 12/1/2022 427 -$ -$ 1,500,000.00$ -$ -$ -$ COOPERATIVE RABOBANK NY 2,500,000.00 1/10/2023 467 -$ -$ 2,500,000.00$ -$ -$ -$ NIKE INC1,200,000.00 5/1/2023 578 -$ -$ 1,200,000.00$ -$ -$ -$ BP CAPITAL MARKETS 3,490,000.00 5/10/2023 587 -$ -$ 3,490,000.00$ -$ -$ -$ LOEWS CORP 1,500,000.00 5/15/2023 592 -$ -$ 1,500,000.00$ -$ -$ -$ SIMON PROPERTY GROUP LP 2,000,000.00 6/1/2023 609 -$ -$ 2,000,000.00$ -$ -$ -$ JOHN DEERE 2,000,000.00 6/7/2023 615 -$ -$ 2,000,000.00$ -$ -$ -$ GILEAD SCIENCES 3,092,000.00 9/1/2023 701 -$ -$ 3,092,000.00$ -$ -$ -$ CUMMINS INC 3,500,000.00 10/1/2023 731 -$ -$ -$ 3,500,000.00$ -$ -$ CATERPILLAR 3,700,000.00 12/7/2023 798 -$ -$ -$ 3,700,000.00$ -$ -$ GEORGIA-PACIFIC 320,000.00 1/15/2024 837 -$ -$ -$ 320,000.00$ -$ -$ JOHN DEERE 3,000,000.00 3/7/2024 889 -$ -$ -$ 3,000,000.00$ -$ -$ UNILEVER CAPITAL 1,500,000.00 5/5/2024 948 -$ -$ -$ 1,500,000.00$ -$ -$ UNILEVER CAPITAL 2,000,000.00 5/5/2024 948 -$ -$ -$ 2,000,000.00$ -$ -$ APPLE INC 250,000.00 5/6/2024 949 -$ -$ -$ 250,000.00$ -$ -$ APPLE INC 650,000.00 5/11/2024 954 -$ -$ -$ 650,000.00$ -$ -$ TEXAS INSTRUMENTS 1,000,000.00 5/15/2024 958 -$ -$ -$ 1,000,000.00$ -$ -$ BNY MELLON 600,000.00 5/15/2024 958 -$ -$ -$ 600,000.00$ -$ -$ IBM CORP 3,000,000.00 5/15/2024 958 -$ -$ -$ 3,000,000.00$ -$ -$ UNITED HEALTH 3,000,000.00 8/15/2024 1050 -$ -$ -$ 3,000,000.00$ -$ -$ EXXON MOBIL CO 1,000,000.00 8/16/2024 1051 -$ -$ -$ 1,000,000.00$ -$ -$ AMAZON.COM INC 226,000.00 8/22/2024 1057 -$ -$ -$ 226,000.00$ -$ -$ BURLINGTON NORTH SANTA FE 1,000,000.00 9/1/2024 1067 -$ -$ -$ 1,000,000.00$ -$ -$ PAYPAL HOLDING 950,000.00 10/1/2024 1097 -$ -$ -$ -$ 950,000.00$ -$ HERSHEY COMPANY 677,000.00 11/15/2024 1142 -$ -$ -$ -$ 677,000.00$ -$ PACCAR FINANCIAL 1,000,000.00 2/6/2025 1225 -$ -$ -$ -$ 1,000,000.00$ -$ WW GRAINGER INC 580,000.00 2/15/2025 1234 -$ -$ -$ -$ 580,000.00$ -$ CORPORATE NOTE10,000,000.00$ 30,591,000.00$ 26,510,000.00$ 24,746,000.00$ 3,207,000.00$ -$ FFCB3,000,000.00 10/19/2021 19 3,000,000.00$ -$ -$ -$ -$ -$ FFCB2,000,000.00 1/21/2022 113 2,000,000.00$ -$ -$ -$ -$ -$ FAMCA1,000,000.00 6/21/2022 264 -$ 1,000,000.00$ -$ -$ -$ -$ FHLB3,000,000.00 9/9/2022 344 -$ 3,000,000.00$ -$ -$ -$ -$ FNMA3,000,000.00 10/5/2022 370 -$ -$ 3,000,000.00$ -$ -$ -$ FFCB2,719,000.00 8/14/2023 683 -$ -$ 2,719,000.00$ -$ -$ -$ FAMCA4,000,000.00 9/26/2024 1092 -$ -$ -$ 4,000,000.00$ -$ -$ FFCB1,000,000.00 10/17/2024 1113 -$ -$ -$ -$ 1,000,000.00$ -$ FFCB3,000,000.00 11/1/2024 1128 -$ -$ -$ -$ 3,000,000.00$ -$ FEDERAL AGENCY BOND/NOTE5,000,000.00$ 4,000,000.00$ 5,719,000.00$ 4,000,000.00$ 4,000,000.00$ -$ U.S. TREASURY NOTE-$ -$ -$ -$ -$ -$ CALIFORNIA BABS 3,870,000.00 11/1/2021 32 3,870,000.00$ -$ -$ -$ -$ -$ Page 12 of 142021/11/16 City Council Post Agenda Page 52 of 141 City of Chula VistaToday's Date: 9/30/2021Portfolio Maturity Distribution0 - 182 Days 183 - 365 Days 366 - 730 Days 731 - 1095 Days 1096 - 1460 Days 1461 - 1825 DaysDescription PAR Maturity Days to Maturity Under 6 Months 6 - 12 Months 1 - 2 Years 2 - 3 Years 3 - 4 Years 4 - 5 YearsUNIV OF CALIFORNIA 200,000.00 5/15/2022 227 -$ 200,000.00$ -$ -$ -$ -$ CITY OF OXNARD FIN AUTH 250,000.00 6/1/2022 244 -$ 250,000.00$ -$ -$ -$ -$ LAKE TAHOE UNIFIED SCH DIST 530,000.00 8/1/2022 305 -$ 530,000.00$ -$ -$ -$ -$ LOS ANGELES CNTY REDEV REF 1,000,000.00 9/1/2022 336 -$ 1,000,000.00$ -$ -$ -$ -$ HESPERIA CMNTY REDEV AGY 1,500,000.00 9/1/2022 336 -$ 1,500,000.00$ -$ -$ -$ -$ BAY AREA CA TOLL AUTH 2,500,000.00 4/1/2023 548 -$ -$ 2,500,000.00$ -$ -$ -$ UNIV OF CALIFORNIA 2,000,000.00 5/15/2023 592 -$ -$ 2,000,000.00$ -$ -$ -$ CALIFORNIA HEALTH FAC FIN 1,000,000.00 6/1/2023 609 -$ -$ 1,000,000.00$ -$ -$ -$ CITY OF ONTARIO CA 200,000.00 6/1/2023 609 -$ -$ 200,000.00$ -$ -$ -$ STHRN PUB PWR AUTH-B 3,960,000.00 7/1/2023 639 -$ -$ 3,960,000.00$ -$ -$ -$ GARDEN GROVE UNIFIED SD 245,000.00 8/1/2023 670 -$ -$ 245,000.00$ -$ -$ -$ POWAY UNIFIED SCHOOL DIST 1,000,000.00 8/1/2023 670 -$ -$ 1,000,000.00$ -$ -$ -$ COACHELLA VALLEY USD 555,000.00 8/1/2023 670 -$ -$ 555,000.00$ -$ -$ -$ SAN RAFAEL ELEM SCH DIST 980,000.00 8/1/2023 670 -$ -$ 980,000.00$ -$ -$ -$ WEST CONTRA COSTA USD 500,000.00 8/1/2023 670 -$ -$ 500,000.00$ -$ -$ -$ POMONA PENSN OBLG 500,000.00 8/1/2023 670 -$ -$ 500,000.00$ -$ -$ -$ STATE OF CALIFORNIA 2,500,000.00 10/1/2023 731 -$ -$ -$ 2,500,000.00$ -$ -$ STATE OF CALIFORNIA 4,000,000.00 10/1/2023 731 -$ -$ -$ 4,000,000.00$ -$ -$ CALIFORNIA STATE UNIVERSITY 400,000.00 11/1/2023 762 -$ -$ -$ 400,000.00$ -$ -$ BAKERSFIELD SCHOOL DISTRICT 335,000.00 11/1/2023 762 -$ -$ -$ 335,000.00$ -$ -$ STATE OF CALIFORNIA 3,000,000.00 4/1/2024 914 -$ -$ -$ 3,000,000.00$ -$ -$ CITY OF RIVERSIDE PENSN OBLG 250,000.00 6/1/2024 975 -$ -$ -$ 250,000.00$ -$ -$ CENTRAL UNIFIED SCHOOL DIST 795,000.00 7/1/2024 1005 -$ -$ -$ 795,000.00$ -$ -$ SAN RAFAEL ELEM SCH DIST 1,200,000.00 8/1/2024 1036 -$ -$ -$ 1,200,000.00$ -$ -$ SANTA MONICA-MALIBU USD 250,000.00 8/1/2024 1036 -$ -$ -$ 250,000.00$ -$ -$ GILROY UNIFIED SD 500,000.00 8/1/2024 1036 -$ -$ -$ 500,000.00$ -$ -$ LONG BEACH CCD 1,315,000.00 8/1/2024 1036 -$ -$ -$ 1,315,000.00$ -$ -$ COACHELLA VALLEY USD 365,000.00 8/1/2024 1036 -$ -$ -$ 365,000.00$ -$ -$ SAN BERNARDINO CCD 700,000.00 8/1/2024 1036 -$ -$ -$ 700,000.00$ -$ -$ SAN BERNARDINO CCD 1,000,000.00 8/1/2024 1036 -$ -$ -$ 1,000,000.00$ -$ -$ SONOMA CNTY JR COLLEGE DIST 1,000,000.00 8/1/2024 1036 -$ -$ -$ 1,000,000.00$ -$ -$ VAL VERDE UNIFIED SCH DIST 215,000.00 8/1/2024 1036 -$ -$ -$ 215,000.00$ -$ -$ OAK GROVE SCHOOL DISTRICT 200,000.00 8/1/2024 1036 -$ -$ -$ 200,000.00$ -$ -$ CARSON REDEV AGY TAB 600,000.00 8/1/2024 1036 -$ -$ -$ 600,000.00$ -$ -$ SANTA ANA CMNTY REDEV AGY 2,000,000.00 9/1/2024 1067 -$ -$ -$ 2,000,000.00$ -$ -$ CALIFORNIA STATE UNIVERSITY 450,000.00 11/1/2024 1128 -$ -$ -$ -$ 450,000.00$ -$ STATE OF CALIFORNIA 750,000.00 3/1/2025 1248 -$ -$ -$ -$ 750,000.00$ -$ SAN FRANCISCO CTY/CNTY PORT 255,000.00 3/1/2025 1248 -$ -$ -$ -$ 255,000.00$ -$ GARDENA PENSN OBLIG 250,000.00 4/1/2025 1279 -$ -$ -$ -$ 250,000.00$ -$ CA STWD CMNTY DEV TRANS 1,000,000.00 6/1/2025 1340 -$ -$ -$ -$ 1,000,000.00$ -$ CITY OF ONTARIO CA POB 1,000,000.00 6/1/2025 1340 -$ -$ -$ -$ 1,000,000.00$ -$ CITY OF SAN BERNARDINO USD 2,250,000.00 8/1/2025 1401 -$ -$ -$ -$ 2,250,000.00$ -$ COLTON UNIFIED SD 2,475,000.00 8/1/2025 1401 -$ -$ -$ -$ 2,475,000.00$ -$ CARPINTERIA UNIFIED SCH DIST 1,210,000.00 8/1/2025 1401 -$ -$ -$ -$ 1,210,000.00$ -$ POMONA PENSION OBLG 1,675,000.00 8/1/2025 1401 -$ -$ -$ -$ 1,675,000.00$ -$ MUNICIPAL BOND3,870,000.00$ 3,480,000.00$ 13,440,000.00$ 20,625,000.00$ 11,315,000.00$ -$ IADB5,000,000.00 9/14/2022 349 -$ 5,000,000.00$ -$ -$ -$ -$ SUPRANATIONAL-$ 5,000,000.00$ -$ -$ -$ -$ Total24,079,000.00$ 45,549,000.00$ 53,635,243.57$ 63,781,000.00$ 27,639,000.00$ -$ Note: Excludes Pooled Investments and Bank of New York Mellon Money Market FundGrand Total 214,683,243.57$ Page 13 of 142021/11/16 City Council Post Agenda Page 53 of 141 City of Chula Vista Corporate Bonds - Sector Distribution SecurityTypeDesc Maturity CUSIP YTM BNY Market Value GICS Sector JOHNSON & JOHNSON 3/3/2022 478160CD4 2.79 4,027,640.00 Consumer Staples AMERICAN EXPRESS CREDIT 3/3/2022 0258M0EG0 3.20 3,024,450.00 Financials US BANCORP 3/15/2022 91159HHC7 3.17 3,031,020.00 Financials MUFG UNION BANK 4/1/2022 90520EAH4 2.34 1,260,139.20 Financials GLAXOSMITHKLINE 5/8/2022 377373AD7 2.81 3,046,110.00 Health Care QUALCOMM INC 5/20/2022 747525AE3 3.14 2,639,400.45 Information Technology AMERICAN HONDA FINANCE 6/27/2022 02665WCY5 1.83 2,537,000.00 Consumer Discretionary UNITED HEALTH 7/15/2022 91324PCN0 3.24 3,071,700.00 Health Care PNC BANK 7/28/2022 69353RFE3 3.53 4,066,840.00 Financials PACCAR FINANCIAL 8/10/2022 69371RN77 2.05 2,543,600.00 Financials PROCTOR & GAMBLE 8/11/2022 742718EU9 3.24 3,051,540.00 Consumer Staples ESTEE LAUDER CO 8/15/2022 29736RAE0 1.72 254,325.00 Consumer Staples CHARLES SCHWAB CORP 9/1/2022 808513AG0 1.80 2,438,536.32 Financials TOYOTA MOTOR CREDIT 9/8/2022 89236TEC5 1.83 1,527,600.00 Consumer Discretionary WALT DISNEY COMPANY 9/15/2022 254687CM6 1.64 1,123,470.00 Communication Services JP MORGAN CHASE 9/23/2022 46625HJE1 1.77 2,604,382.00 Financials PACCAR FINANCIAL 9/26/2022 69371RQ33 1.15 1,018,370.00 Financials UNITED PARCEL SERVICE 10/1/2022 911312AQ9 3.37 3,831,675.00 Industrials UNITED HEALTH 10/15/2022 91324PDD1 2.21 2,560,390.08 Health Care CHUBB INA HOLDINGS INC 11/3/2022 00440EAU1 1.78 2,557,450.00 Financials AMERICAN HONDA FINANCE 11/16/2022 02665WCA7 2.25 485,726.76 Consumer Discretionary WALT DISNEY COMPANY 12/1/2022 25468PCW4 1.93 1,534,905.00 Communication Services COOPERATIVE RABOBANK NY 1/10/2023 21688AAL6 2.91 2,577,350.00 Financials NIKE INC 5/1/2023 654106AC7 2.09 1,231,560.00 Consumer Discretionary BP CAPITAL MARKETS 5/10/2023 10373QAL4 2.59 3,622,410.60 Energy LOEWS CORP 5/15/2023 540424AQ1 1.74 1,546,080.00 Financials SIMON PROPERTY GROUP LP 6/1/2023 828807DD6 1.92 2,064,660.00 Real Estate JOHN DEERE 6/7/2023 24422EUH0 1.72 2,107,020.00 Industrials GILEAD SCIENCES 9/1/2023 375558BL6 2.54 3,204,085.00 Health Care CUMMINS INC 10/1/2023 231021AR7 2.22 3,696,595.00 Industrials CATERPILLAR 12/7/2023 14913Q2S7 2.56 3,959,037.00 Industrials GEORGIA-PACIFIC 1/15/2024 373298CF3 2.42 373,132.80 Materials JOHN DEERE 3/7/2024 24422EUX5 1.22 3,148,320.00 Industrials UNILEVER CAPITAL 5/5/2024 904764AX5 1.75 1,572,435.00 Consumer Staples UNILEVER CAPITAL 5/5/2024 904764AX5 1.79 2,096,580.00 Consumer Staples APPLE INC 5/6/2024 037833AS9 1.63 268,557.50 Information Technology APPLE INC 5/11/2024 037833CU2 1.69 686,127.00 Information Technology TEXAS INSTRUMENTS 5/15/2024 882508BB9 2.28 1,048,330.00 Information Technology BNY MELLON 5/15/2024 06406HCV9 1.36 642,078.00 Financials IBM CORP 5/15/2024 459200JY8 0.60 3,181,920.00 Information Technology UNITED HEALTH 8/15/2024 91324PDR0 0.58 3,142,380.00 Health Care EXXON MOBIL CO 8/16/2024 30231GBC5 0.65 1,040,030.00 Information Technology AMAZON.COM INC 8/22/2024 023135AZ9 1.88 239,460.56 Consumer Discretionary BURLINGTON NORTH SANTA FE 9/1/2024 12189LAT8 1.87 1,073,870.00 Industrials PAYPAL HOLDING 10/1/2024 70450YAC7 0.67 998,146.00 Information Technology HERSHEY COMPANY 11/15/2024 427866BC1 1.87 704,628.37 Consumer Staples PACCAR FINANCIAL 2/6/2025 69371RQ66 0.66 1,029,080.00 Financials WW GRAINGER INC 2/15/2025 384802AE4 0.70 597,614.60 Industrials Total 98,087,757.24 GICS Sector Amount Percent Information Technology 9,862,510.95 10.05% Financials 28,339,375.52 28.89% Real Estate 2,064,660.00 2.10% Consumer Discretionary 6,021,347.32 6.14% Industrials 18,414,131.60 18.77% Consumer Staples 11,707,148.37 11.94% Energy 3,622,410.60 3.69% Utilities 0.00 0.00% Materials 373,132.80 0.38% Communication Services 2,658,375.00 2.71% Health Care 15,024,665.08 15.32% Total 98,087,757.24 100.00% 10.05% 28.89% 2.10% 6.14%18.77% 11.94% 3.69% 0.00% 0.38% 2.71% 15.32% Corporate Bonds - Sector Distribution Information Technology Financials Real Estate Consumer Discretionary Industrials Consumer Staples Energy Utilities Materials Communication Services Health Care Page 14 of 142021/11/16 City Council Post Agenda Page 54 of 141 v . 0 03 P a g e | 1 November 16, 2021 ITEM TITLE American Rescue Plan Act Spending Plan: Amendment and Subrecipient Agreement with the Jacobs and Cushman San Diego Food Bank Report Number: 21-0221 Location: No specific geographic location Department: Development Services Environmental Notice: The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required. Notwithstanding the foregoing, the activity qualifies for an Exemption pursuant to Section 15061(b)(3) of the California Environmental Quality Act State Guidelines. Recommended Action Adopt a resolution amending the American Rescue Plan Act (ARPA) Spending Plan, approving a subrecipient agreement with the Jacobs and Cushman San Diego Food Bank, and reallocating funds for that purpose. SUMMARY On May 10, 2021, the U.S. Department of the Treasury announced the launch of the Coronavirus State and Local Fiscal Recovery Funds, established by the American Rescue Plan Act of 2021 (“ARPA”), to provide $350 billion in emergency funding for eligible state, local, territorial, and Tribal govern ments. The Coronavirus State and Local Fiscal Recovery Funds provide substantial flexibility for each jurisdiction to meet local needs—including support for households, small businesses, impacted industries, essential workers, and the communities hardest-hit by the crisis. This action proposes to appropriate $100,000 from the ARPA funds to the Jacobs and Cushman San Diego Food Bank. On August 24, 2021, the City Council approved the appropriation of $28.76 million from the ARPA funds, including an appropriation of $14 million from the ARPA account into Governmental Funds and the addition of 10.0 positions to the General Fund. This item seeks to amend the Spending Plan by reallocating $100,000 from the Economic Development Category to the Public Health Category, more specifically, delivering assistance to workers and families. 2021/11/16 City Council Post Agenda Page 55 of 141 P a g e | 2 Furthermore, this item authorizes a Subrecipient Agreement with the Jacobs and Cushman San Diego Food Bank and appropriate funds. ENVIRONMENTAL REVIEW The proposed activity has been reviewed for compliance with the California Environmental Quality Act (CEQA) and it has been determined that the activity is not a “Project” as defined under Section 15378 of the state CEQA Guidelines; therefore, pursuant to Section 15060(c)3) of the State CEQA Guidelines, the activity is not subject to CEQA. Although environmental review is not required at this time, once the scope of potential project(s) has been defined, environmental review will be required for each project and the appropriate environmental determination will be made. Notwithstanding the foregoing, it has also been determined that the activity qualifies for an Exemption pursuant to Section 15061(b)(3) of the California Environmental Quality Act State Guidelines. Thus, no environmental review is required. BOARD/COMMISSION/COMMITTEE RECOMMENDATION Not applicable. DISCUSSION On May 10, 2021, the U.S. Department of the Treasury announced the launch of the Coronavirus State and Local Fiscal Recovery Funds, established by the American Rescue Plan Act of 2021, to provide $350 billion in emergency funding for eligible state, local, territorial, and Tribal governments. The Treasury also released details on how these funds can be used to respond to acute pandemic response needs, fill revenue shortfalls among these governments, and support the communities and populations hardest-hit by the COVID-19 crisis. With the launch of the Coronavirus State and Local Fiscal Recovery Funds, eligible jurisdictions have been able to access this funding to address these needs. To support the immediate pandemic response, provide for basic emergency needs, bring back jobs, and lay the groundwork for a strong and equitable recovery, ARPA established the Coronavirus State and Local Fiscal Recovery Funds, designed to deliver $350 billion to state, local, territorial, and Tribal governments to bolster their response to the COVID-19 emergency and its economic impacts. The Treasury has launched much-needed relief to:  Support urgent COVID-19 response efforts to continue to decrease spread of the virus and bring the pandemic under control;  Replace lost public sector revenue to strengthen support for vital public services and help retain jobs;  Support immediate economic stabilization for households and businesses; and,  Address systemic public health and economic challenges that have contributed to the inequal impact of the pandemic on certain populations. The Coronavirus State and Local Fiscal Recovery Funds provide substantial flexibility for each jurisdiction to meet local needs—including support for households, small businesses, impacted industries, essential workers, and the communities hardest-hit by the crisis. On August 21, 2021, City Council approved the formal allocation in the amount of $28.7 million which represented the first round of ARPA funds received in May 2021. 2021/11/16 City Council Post Agenda Page 56 of 141 P a g e | 3 Despite recent improvements in the economy and the lifting of California’s pandemic restrictions, tens of thousands of families throughout our community continue to struggle with food insecur ity. For many families it will take a long time to fully recover from the financial impacts of the pandemic. Through the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) the City allocated funding to support local food programs. Those funds have since been exhausted. For this reason, staff is proposing the addition of a new activity under the public health category. The table below reflects the new proposed allocation of ARPA funds. * Public Health Category: New allocation of $100,000 for Jacobs and Cushman San Diego Food Bank ** Economic Development Category: Choose Chula allocation reduced from $300,000 to $200,000 The Jacobs & Cushman San Diego Food Bank has been on the front lines of the Coronavirus crisis since the pandemic hit our community in March 2020. Along with volunteers and a network of nonprofit partners, they have been providing emergency food assistance to individuals and families impacted by the pandemic. With a new allocation of funding and working closely with over 35 Chula Vista nonprofit partners, the San Diego Food Bank will serve as the main point of contact for food distribution and ensure that the City of Chula Vista continues to provide assistance to our neighbors in need. DECISION-MAKER CONFLICT Staff has reviewed the property holdings of the City Council members and has found no property holdings within 1,000 feet of the boundaries of the property which is the subject of this action. Consequently, this item does not present a disqualifying real property-related financial conflict of interest under California Code of Regulations Title 2, section 18702.2(a)(7) or (8), for purposes of the Political Reform Act (Cal. Gov’t Code §87100, et seq.). Staff is not independently aware, and has not been informed by any City Council member, Category FY 2022 FY 2023 Total Revenue Recovery 32,200,000$ Governmental Funds 14,000,000$ 18,200,000$ Public Health 19,835,250$ HVAC (GGV0261)9,000,000$ 9,500,000$ Jacobs and Cushman San Diego Food Bank 100,000$ -$ * COVID Testing/Vaccinations 667,625$ 567,625$ Premium Pay to Essential Workers 1,000,000$ 500,000$ 1,500,000$ Economic Development 3,100,000$ Small Business Grants 2,600,000$ -$ Choose Chula 200,000$ -$ ** Curb/Sidewalk Café Grant 300,000$ -$ Infrastructure 900,000$ Broadband Design (GGV0263)900,000$ -$ TOTAL 28,767,625$ 28,767,625$ 57,535,250$ ARPA Funding Recommendation 2021/11/16 City Council Post Agenda Page 57 of 141 P a g e | 4 of any other fact that may constitute a basis for a decision-maker conflict of interest in this matter. CURRENT-YEAR FISCAL IMPACT There is no current year fiscal impact to the City's General Fund as all costs associated with the program are covered by available American Rescue Plan Act funds. Approval of the resolution reallocates $100,000 in ARPA funds that have been previously appropriated. ONGOING FISCAL IMPACT There is no ongoing fiscal impact to the City's General Fund as all costs associated with the program are covered by available American Rescue Plan Act funds. ATTACHMENTS 1. Subrecipient Agreement Staff Contact: Tiffany Allen, Director of Development Services Angélica Davis, Sr Management Analyst 2021/11/16 City Council Post Agenda Page 58 of 141 1 City of Chula Vista Agreement No.: 2021-125 Consultant Name: JACOBS AND CUSHMAN SAN DIEGO FOOD BANK Rev. 10/24/17 CITY OF CHULA VISTA CONTRACTOR/SERVICE PROVIDER SERVICES AGREEMENT WITH JACOBS AND CUSHMAN SAN DIEGO FOOD BANK TO PROVIDE FOOD SERVICES DUE TO THE PUBLIC HEALTH EMERGENCY WITH RESPECT TO THE CORONAVIRUS DISEASE 2019 (COVID-19) This Agreement is entered into effective as of November 16, 2021 (“Effective Date”) by and between the City of Chula Vista, a chartered municipal corporation (“City”) and JACOBS AND CUSHMAN SAN DIEGO FOOD BANK, a California non-profit corporation (“Contractor/Service Provider”) (collectively, the “Parties” and, individually, a “Party”) with reference to the following facts: RECITALS WHEREAS, on March 11, 2021, the United States Congress passed the American Rescue Plan Act of 2021 (ARPA), which provides fiscal relief funds to State and Local Governments, and other program areas aimed at mitigating the continuing effects of the COVID-19 Pandemic; and,; and, WHEREAS, ARPA is intended to provide support to local governments in responding to the impact of COVID-19 and in their efforts to contain COVID-19 in their communities, residents, and businesses; and, WHEREAS, ARPA includes State and Local Fiscal Recovery Funds to support urgent COVID response efforts to decrease the spread of the virus; to replace lost public sector revenue to strengthen support for vital public services; to support immediate economic stabilization for households and businesses; and to address systemic public health and economic challenges that have contributed to inequal impacts o f the pandemic on certain populations; and, WHEREAS, the City of Chula Vista will receive $57,535,251 in two tranches with $28,767,625 provided in May 2021 and the remaining $28,767,625 to be received twelve months later; and, WHEREAS, the City Council intends to expend a portion of the first tranche of the City’s ARPA Funds in accordance with Federal Law and guidance, for the current critical needs and priorities including the provision of food services. WHEREAS, the Catalog of Federal Domestic Assistance Number for the ARPA is 21.027; and WHEREAS, City is in need of a service provider to administer its program on the City’s behalf; and WHEREAS, Contractor/Service Provider is duly licensed and/or has the necessary qualifications to provide such services for the Project; and. WHEREAS, The Parties desire to establish the terms for the City to retain the Contractor/Service Provider in order to provide the services described herein; and WHEREAS, Contractor/Service Provider warrants and represents that it is experienced and staffed in a manner such that it can deliver the services required of Contractor/Service Provider to City in accordance with the time frames and the terms and conditions of this Agreement. [End of Recitals. Next Page Starts Obligatory Provisions.] 2021/11/16 City Council Post Agenda Page 59 of 141 2 City of Chula Vista Agreement No.: 2021-125 Consultant Name: JACOBS AND CUSHMAN SAN DIEGO FOOD BANK Rev. 10/24/17 OBLIGATORY PROVISIONS NOW, THEREFORE, in consideration of the above recitals, the covenants contained herein, and other good and valuable consideration, the receipt and sufficiency of which the Parties hereby acknowledge, City and Contractor/Service Provider hereby agree as follows: 1. SERVICES 1.1 Required Services. Contractor/Service Provider agrees to perform the services, and deliver to City the “Deliverables” (if any) described in the attached Exhibit A, incorporated into the Agreement by this reference, within the time frames set forth therein, time being of the essence for this Agreement. The services and/or Deliverables described in Exhibit A shall be referred to herein as the “Required Services.” 1.2 Reductions in Scope of Work. City may independently, or upon request from Contractor/Service Provider, from time to time, reduce the Required Services to be performed by the Contractor/Service Provider under this Agreement. Upon doing so, City and Contractor/Service Provider agree to meet and confer in good faith for the purpose of negotiating a corresponding reduction in the compensation associated with the reduction. 1.3 Additional Services. Subject to compliance with the City’s Charter, codes, policies, procedures and ordinances governing procurement and purchasing authority, City may request Contractor/Service Provider provide additional services related to the Required Services (“Additional Services”). If so, City and Contractor/Service Provider agree to meet and confer in good faith for the purpose of negotiating an amendment to Exhibit A, to add the Additional Services. Unless otherwise agreed, compensation for the Additional Services shall be charged and paid consistent with the rates and terms already provided therein. Once added to Exhibit A, “Additional Services” shall also become “Required Services” for purposes of this Agreement. 1.4 Standard of Care. Contractor/Service Provider expressly warrants and agrees that any and all Required Services hereunder shall be performed in accordance with the highest standard of care exercised by members of the profession currently practicing under similar conditions and in similar locations. 1.5 No Waiver of Standard of Care. Where approval by City is required, it is understood to be conceptual approval only and does not relieve the Contractor/Service Provider of responsibility for complying with all laws, codes, industry standards, and liability for damages caused by negligent acts, errors, omissions, noncompliance with industry standards, or the willful misconduct of the Contractor/Service Provider or its subcontractors. 1.6 Security for Performance. In the event that Exhibit A Section 4 indicates the need for Contractor/Service Provider to provide additional security for performance of its duties under this Agreement, Contractor/Service Provider shall provide such additional security prior to commencement of its Required Services in the form and on the terms prescribed on Exhibit A, or as otherwise prescribed by the City Attorney. 1.7 Compliance with Laws. In its performance of the Required Services, Contractor/Service Provider shall comply with any and all applicable federal, state and local laws, including the Chula Vista Municipal Code. 2021/11/16 City Council Post Agenda Page 60 of 141 3 City of Chula Vista Agreement No.: 2021-125 Consultant Name: JACOBS AND CUSHMAN SAN DIEGO FOOD BANK Rev. 10/24/17 1.8 Business License. Prior to commencement of work, Contractor/Service Provider shall obtain a business license from City. 1.9 Subcontractors. Prior to commencement of any work, Contractor/Service Provider shall submit for City’s information and approval a list of any and all subcontractors to be used by Contractor/Service Provider in the performance of the Required Services. Contractor/Service Provider agrees to take appropriate measures necessary to ensure that all subcontractors and personnel utilized by the Contractor/Service Provider to complete its obligations under this Agreement comply with all applicable laws, regulations, ordinances, and policies, whether federal, state, or local. In addition, if any subcontractor is exp ected to fulfill any responsibilities of the Contractor/Service Provider under this Agreement, Contractor/Service Provider shall ensure that each and every subcontractor carries out the Contractor/Service Provider’s responsibilities as set forth in this Agreement. 1.10 Term. This Agreement shall commence on the earlier to occur of the Effective Date or Contractor/Service Provider’s commencement of the Required Services hereunder, and shall terminate when the Parties have complied with all their obligations hereunder; provided, however, provisions which expressly survive termination shall remain in effect. 2. COMPENSATION 2.1 General. For satisfactory performance of the Required Services, City agrees to compensate Contractor/Service Provider in the amount(s) and on the terms set forth in Exhibit A, Section 4. Standard terms for billing and payment are set forth in this Section 2. 2.2 Detailed Invoicing. Contractor/Service Provider agrees to provide City with a detailed invoice for services performed each month, within thirty (30) days of the end of the month in which the services were performed, unless otherwise specified in Exhibit A. Invoicing shall begin on the first of the month following the Effective Date of the Agreement. All charges must be presented in a line item format with each task separately explained in reasonable detail. Each invoice shall include the current monthly amount being billed, the amount invoiced to date, and the remaining amount available under any app roved budget. Contractor/Service Provider must obtain prior written authorization from City for any fees or expenses that exceed the estimated budget. 2.3 Payment to Contractor/Service Provider. Upon receipt of a properly prepared invoice and confirmation that the Required Services detailed in the invoice have been satisfactorily performed, City shall pay Contractor/Service Provider for the invoice amount within thirty (30) days. Payment shall be made in accordance with the terms and conditions set forth in Exhibit A and section 2.4, below. At City’s discretion, invoices not timely submitted may be subject to a penalty of up to five percent (5%) of the amount invoiced. 2.4 Retention Policy. City shall retain ten percent (10%) of the amount due for Required Services detailed on each invoice (the “holdback amount”). Upon City review and determination of Project Completion, the holdback amount will be issued to Contractor/Service Provider. 2.5 Reimbursement of Costs. City may reimburse Contractor/Service Provider’s out-of-pocket costs incurred by Contractor/Service Provider in the performance of the Required Services if negotiated in advance and included in Exhibit A. Unless specifically provided in Exhibit A, Contractor/Service Provider shall be responsible for any and all out-of-pocket costs incurred by Contractor/Service Provider in the performance of the Required Services. 2021/11/16 City Council Post Agenda Page 61 of 141 4 City of Chula Vista Agreement No.: 2021-125 Consultant Name: JACOBS AND CUSHMAN SAN DIEGO FOOD BANK Rev. 10/24/17 2.6 Exclusions. City shall not be responsible for payment to Contractor/Service Provider for any fees or costs in excess of any agreed upon budget, rate or other maximum amount(s) provided for in Exhibit A. City shall also not be responsible for any cost: (a) incurred prior to the Effective Date; or (b) arising out o f or related to the errors, omissions, negligence or acts of willful misconduct of Contractor/Service Provider, its agents, employees, or subcontractors. 2.7 Payment Not Final Approval. Contractor/Service Provider understands and agrees that payment to the Contractor/Service Provider or reimbursement for any Contractor/Service Provider costs related to the performance of Required Services does not constitute a City final decision regarding whether such payment or cost reimbursement is allowable and eligible for payment under this Agreement, nor does it constitute a waiver of any violation by Contractor/Service Provider of the terms of this Agreement. If City determines that Contractor/Service Provider is not entitled to receive any amount of compensation already paid, City will notify Contractor/Service Provider in writing and Contractor/Service Provider shall promptly return such amount. 3. INSURANCE 3.1 Required Insurance. Contractor/Service Provider must procure and maintain, during the period of performance of Required Services under this Agreement, and for twelve months after completion of Required Services, the policies of insurance described on the attached Exhibit B, incorporated into the Agreem ent by this reference (the “Required Insurance”). The Required Insurance shall also comply with all other terms of this Section. 3.2 Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions relating to the Required Insurance must be disclosed to and approved by City in advance of the commencement of work. 3.3 Standards for Insurers. Required Insurance must be placed with licensed insurers admitted to transact business in the State of California with a current A.M. Best’s rating of A V or better, or, if insurance is placed with a surplus lines insurer, insurer must be listed on the State of California List of Eligible Surplus Lines Insurers (LESLI) with a current A.M. Best’s rating of no less than A X. For Workers’ Compen sation Insurance, insurance issued by the State Compensation Fund is also acceptable. 3.4 Subcontractors. Contractor/Service Provider must include all sub-Contractor/Service Providers/sub- contractors as insureds under its policies and/or furnish separate certificates and endorsements demonstrating separate coverage for those not under its policies. Any separate coverage for sub-Contractor/Service Providers must also comply with the terms of this Agreement. 3.5 Additional Insureds. City, its officers, officials, employees, agents, and volunteers must be named as additional insureds with respect to any policy of general liability, automobile, or pollution insurance specified as required in Exhibit B or as may otherwise be specified by City’s Risk Manager.. The general liability additional insured coverage must be provided in the form of an endorsement to the Contractor/Service Provider’s insurance using ISO CG 2010 (11/85) or its equivalent; such endorsement must not exclude Products/Completed Operations coverage. 3.6 General Liability Coverage to be “Primary.” Contractor/Service Provider’s general liability coverage must be primary insurance as it pertains to the City, its officers, officials, employees, agents, and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees, or volunteers is 2021/11/16 City Council Post Agenda Page 62 of 141 5 City of Chula Vista Agreement No.: 2021-125 Consultant Name: JACOBS AND CUSHMAN SAN DIEGO FOOD BANK Rev. 10/24/17 wholly separate from the insurance provided by Contractor/Service Provider and in no way relieves Contractor/Service Provider from its responsibility to provide insurance. 3.7 No Cancellation. No Required Insurance policy may be canceled by either Party during the required insured period under this Agreement, except after thirty days’ prior written notice to the City by certified mail, return receipt requested. Prior to the effective date of any such cancellation Contractor/Service Provider must procure and put into effect equivalent coverage(s). 3.8 Waiver of Subrogation. Contractor/Service Provider’s insurer(s) will provide a Waiver of Subrogation in favor of the City for each Required Insurance policy under this Agreement. In addition, Contractor/Service Provider waives any right it may have or may obtain to subrogation for a claim against City. 3.9 Verification of Coverage. Prior to commencement of any work, Contractor/Service Provider shall furnish City with original certificates of insurance and any amendatory endorsements necessary to demonstrate to City that Contractor/Service Provider has obtained the Required Insurance in compliance with the terms of this Agreement. The words “will endeavor” and “but failure to mail such notice shall impose no obligation or liability of any kind upon the company, its agents, or representatives” or any similar language must be deleted from all certificates. The required certificates and endorsements should otherwise be on industry standard forms. The City reserves the right to require, at any time, complete, certified copies of all required insurance policies, including endorsements evidencing the coverage required by these specifications. 3.10 Claims Made Policy Requirements. If General Liability, Pollution and/or Asbestos Pollution Liability and/or Errors & Omissions coverage are required and are provided on a claims -made form, the following requirements also apply: a. The “Retro Date” must be shown, and must be before the date of this Agreement or the beginning of the work required by this Agreement. b. Insurance must be maintained, and evidence of insurance must be provided, for at least five (5) years after completion of the work required by this Agreement. c. If coverage is canceled or non-renewed, and not replaced with another claims-made policy form with a “Retro Date” prior to the effective date of this Agreement, the Contractor/Service Provider must purchase “extended reporting” coverage for a minimum of five (5) years after completion of the work required by this Agreement. d. A copy of the claims reporting requirements must be submitted to the City for review. 3.11 Not a Limitation of Other Obligations. Insurance provisions under this section shall not be construed to limit the Contractor/Service Provider’s obligations under this Agreement, including Indemnity. 3.12 Additional Coverage. To the extent that insurance coverage provided by Contractor/Service Provider maintains higher limits than the minimums appearing in Exhibit B, City requires and shall be entitled to coverage for higher limits maintained. 2021/11/16 City Council Post Agenda Page 63 of 141 6 City of Chula Vista Agreement No.: 2021-125 Consultant Name: JACOBS AND CUSHMAN SAN DIEGO FOOD BANK Rev. 10/24/17 4. INDEMNIFICATION 4.1. General. To the maximum extent allowed by law, Contractor/Service Provider shall protect, defend, indemnify and hold harmless City, its elected and appointed officers, agents, employees and volunteers (collectively, “Indemnified Parties”), from and against any and all claims, demands, causes of action, costs, expenses, (including reasonable attorneys’ fees and court costs), liability, loss, damage or injury, in law or equity, to property or persons, including wrongful death, in any manner arising out of or incident to any alleged acts, omissions, negligence, or willful misconduct of Contractor/Service Provider, its officials, officers, employees, agents, and contractors, arising out of or in connection with the performance of the Required Services, the results of such performance, or this Agreement. This indemnity provision does not include any claims, damages, liability, costs and expenses arising from the sole negligence or willful misconduct of the Indemnified Parties. Also covered is liability arising from, connected with, caused by or claimed to be caused by the active or passive negligent acts or omissions of the Indemnified Parties which may be in combination with the active or passive negligent acts or omissions of the Contractor/Service Provider, its employees, agents or officers, or any third party. 4.2. Modified Indemnity Where Agreement Involves Design Professional Services. Notwithstanding the forgoing, if the services provided under this Agreement are design professional services, as defined by California Civil Code section 2782.8, as may be amended from time to time, the defense and indemnity obligation under Section 1, above, shall be limited to the extent required by California Civil Code section 2782.8. 4.3 Costs of Defense and Award. Included in Contractor/Service Provider’s obligations under this Section 4 is Contractor/Service Provider’s obligation to defend, at Contractor/Service Provider’s own cost, expense and risk, any and all suits, actions or other legal proceedings that may be brought or instituted against one or more of the Indemnified Parties. Subject to the limitations in this Section 4, Contractor/Service Provider shall pay and satisfy any judgment, award or decree that may be rendered against one or more of the Indemnified Parties for any and all related legal expenses and costs incurred b y any of them. 4.4. Contractor/Service Provider’s Obligations Not Limited or Modified. Contractor/Service Provider’s obligations under this Section 4 shall not be limited to insurance proceeds, if any, received by the Indemnified Parties, or by any prior or subsequent declaration by the Contractor/Service Provider. Furthermore, Contractor/Service Provider’s obligations under this Section 4 shall in no way limit, modify or excuse any of Contractor/Service Provider’s other obligations or duties under this Agreement. 4.5. Enforcement Costs. Contractor/Service Provider agrees to pay any and all costs City incurs in enforcing Contractor/Service Provider’s obligations under this Section 4. 4.6 Survival. Contractor/Service Provider’s obligations under this Section 4 shall survive the termination of this Agreement. 5. FINANCIAL INTERESTS OF CONTRACTOR/SERVICE PROVIDER. 5.1 Form 700 Filing. The California Political Reform Act and the Chula Vista Conflict of Interest Code require certain government officials and Contractor/Service Providers performing work for government agencies to publicly disclose certain of their personal assets and income using a Statement of Economic Interests form (Form 700). In order to assure compliance with these requirements, Contractor/Service 2021/11/16 City Council Post Agenda Page 64 of 141 7 City of Chula Vista Agreement No.: 2021-125 Consultant Name: JACOBS AND CUSHMAN SAN DIEGO FOOD BANK Rev. 10/24/17 Provider shall comply with the disclosure requirements identified in the attached Exhibit C, incorporated into the Agreement by this reference. 5.2 Disclosures; Prohibited Interests. Independent of whether Contractor/Service Provider is required to file a Form 700, Contractor/Service Provider warrants and represents that it has disclosed to City any economic interests held by Contractor/Service Provider, or its employees or subcontractors who will be performing the Required Services, in any real property or project which is the subject of this Agreement. Contractor/Service Provider warrants and represents that it has not employed or retained any company or person, other than a bona fide employee or approved subcontractor working solely for Contractor/Service Provider, to solicit or secure this Agreement. Further, Contractor/Service Provider warrants and represents that it has not paid or agreed to pay any company or person, other than a bona fide employee or approved subcontractor working solely for Contractor/Service Provider, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. Contractor/Service Provider further warrants and represents that no officer or employee of City, has any interest, whether contractual, non-contractual, financial or otherwise, in this transaction, the proceeds hereof, or in the business of Contractor/Service Provider or Contractor/Service Provider’s subcontractors. Contractor/Service Provider further agrees to notify City in the event any such interest is discovered whether or not such interest is prohibited by law or this Agreement. For breach or violation of any of these warranties, City shall have the right to rescind this Agreement without liability. 6. REMEDIES 6.1 Termination for Cause. If for any reason whatsoever Contractor/Service Provider shall fail to perform the Required Services under this Agreement, in a proper or timely manner, or if Contractor/Service Provider shall violate any of the other covenants, agreements or conditions of this Agreement (each a “Default”), in addition to any and all other rights and remedies City may have under this Agreement, at law or in equity, City shall have the right to terminate this Agreement by giving five (5) days written notice to Contractor/Service Provider. Such notice shall identify the Default and the Agreement termination date. If Contractor/Service Provider notifies City of its intent to cure such Default prior to City’s specified termination date, and City agrees that the specified Default is capable of being cured, City may grant Contractor/Service Provider up to ten (10) additional days after the designated termination date to effectuate such cure. In the event of a termination under this Section 6.1, Contractor/Service Provider shall immediately provide City any and all” Work Product” (defined in Section 7 below) prepared by Contractor/Service Provider as part of the Required Services. Such Work Product shall be City’s sole and exclusive property as provided in Section 7 hereof. Contractor/Service Provider may be entitled to compensation for work satisfactorily performed prior to Contractor/Service Provider’s receipt of the Default notice; provided, however, in no event shall such compensation exceed the amount that would have been payable under this Agreement for such work, and any such compensation shall be reduced by any costs incurred or projected to be incurred by City as a result of the Default. 6.2 Termination or Suspension for Convenience of City. City may suspend or terminate this Agreement, or any portion of the Required Services, at any time and for any reason, with or without cause, by giving specific written notice to Contractor/Service Provider of such termination or suspension at least fifteen (15) days prior to the effective date thereof. Upon receipt of such notice, Contractor/Service Provider shall immediately cease all work under the Agreement and promptly deliver all “Work Product” (defined in Section 7 below) to City. Such Work Product shall be City's sole and exclusive property as provided in Section 7 hereof. Contractor/Service Provider shall be entitled to receive just and equitable compensation for this Work Product in an amount equal to the amount due and payable under this Agreement for work satisfactorily 2021/11/16 City Council Post Agenda Page 65 of 141 8 City of Chula Vista Agreement No.: 2021-125 Consultant Name: JACOBS AND CUSHMAN SAN DIEGO FOOD BANK Rev. 10/24/17 performed as of the date of the termination/suspension notice plus any additional remaining Required Services requested or approved by City in advance that would maximize City’s value under the Agreement. 6.3 Waiver of Claims. In the event City terminates the Agreement in accordance with the terms of this Section, Contractor/Service Provider hereby expressly waives any and all claims for damages or compensation as a result of such termination except as expressly provided in this Section 6. 6.4 Administrative Claims Requirements and Procedures. No suit or arbitration shall be brought arising out of this Agreement against City unless a claim has first been presented in writing and filed with City and acted upon by City in accordance with the procedures set forth in Chapter 1.34 of the Chula Vista Municipal Code, as same may be amended, the provisions of which, including such policies and procedures used by City in the implementation of same, are incorporated herein by this reference. Upon request by City, Contractor/Service Provider shall meet and confer in good faith with City for the purpose of resolving any dispute over the terms of this Agreement. 6.5 Governing Law/Venue. This Agreement shall be governed by and construed in accordance with the laws of the State of California. Any action arising under or relating to this Agreement shall be brought only in San Diego County, State of California. 6.6 Service of Process. Contractor/Service Provider agrees that it is subject to personal jurisdiction in California. If Contractor/Service Provider is a foreign corporation, limited liability company, or partnership that is not registered with the California Secretary of State, Contractor/Service Provider irrevocably consents to service of process on Contractor/Service Provider by first class mail directed to the individual and address listed under “For Legal Notice,” in section 1.B. of Exhibit A to this Agreement, and that such service shall be effective five days after mailing. 7. OWNERSHIP AND USE OF WORK PRODUCT All reports, studies, information, data, statistics, forms, designs, plans, procedures, systems and any other materials or properties produced in whole or in part under this Agreement in connection with the performance of the Required Services (collectivel y “Work Product”) shall be the sole and exclusive property of City. No such Work Product shall be subject to private use, copyrights or patent rights by Contractor/Service Provider in the United States or in any other country without the express, prior written consent of City. City shall have unrestricted authority to publish, disclose, distribute, and otherwise use, copyright or patent, in whole or in part, any such Work Product, without requiring any permission of Contractor/Service Provider, except as may be limited by the provisions of the Public Records Act or expressly prohibited by other applicable laws. With respect to computer files containing data generated as Work Product, Contractor/Service Provider shall make available to City, upon reasonable written request by City, the necessary functional computer software and hardware for purposes of accessing, compiling, transferring and printing computer files. 8. GENERAL PROVISIONS 8.1 Amendment. This Agreement may be amended, but only in writing signed by both Parties. 8.2 Assignment. City would not have entered into this Agreement but for Contractor/Service Provider’s unique qualifications and traits. Contractor/Service Provider shall not assign any of its rights or responsibilities under this Agreement, nor any part hereof, without City’s prior written consent, which City may grant, condition or deny in its sole discretion. 2021/11/16 City Council Post Agenda Page 66 of 141 9 City of Chula Vista Agreement No.: 2021-125 Consultant Name: JACOBS AND CUSHMAN SAN DIEGO FOOD BANK Rev. 10/24/17 8.3 Authority. The person(s) executing this Agreement for Contractor/Service Provider warrants and represents that they have the authority to execute same on behalf of Contractor/Service Provider and to bind Contractor/Service Provider to its obligations hereunder without any further action or direction from Contractor/Service Provider or any board, principle or officer thereof. 8.4 Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which shall constitute one Agreement after each Party has signed such a counterpart. 8.5 Entire Agreement. This Agreement together with all exhibits attached hereto and other agreements expressly referred to herein, constitutes the entire Agreement between the Parties with respect to the subject matter contained herein. All exhibits referenced herein shall be attached hereto and are incorporated herein by reference. All prior or contemporaneous agreements, understandings, representations, warranties and statements, oral or written, are superseded. 8.6 Record Retention. During the course of the Agreement and for three (3) years following completion of the Required Services, Contractor/Service Provider agrees to maintain, intact and readily accessible, all data, documents, reports, records, contracts, and supporting materials relating to the performance of the Agreement, including accounting for costs and expenses charged to City, including such records in the possession of sub-contractors/sub-Contractor/Service Providers. 8.7 Further Assurances. The Parties agree to perform such further acts and to execute and deliver such additional documents and instruments as may be reasonably required in order to carry out the provisions of this Agreement and the intentions of the Parties. 8.8 Independent Contractor. Contractor/Service Provider is and shall at all times remain as to City a wholly independent contractor. Neither City nor any of its officers, employees, agents or volunteers shall have control over the conduct of Contractor/Service Provider or any of Contractor/Service Provider’s officers, employees, or agents (“Contractor/Service Provider Related Individuals”), except as set forth in this Agreement. No Contractor/Service Provider Related Individuals shall be deemed employees of City, and none of them shall be entitled to any benefits to which City employe es are entitled, including but not limited to, overtime, retirement benefits, worker's compensation benefits, injury leave or other leave benefits. Furthermore, City will not withhold state or federal income tax, social security tax or any other payroll t ax with respect to any Contractor/Service Provider Related Individuals; instead, Contractor/Service Provider shall be solely responsible for the payment of same and shall hold the City harmless with respect to same. Contractor/Service Provider shall not at any time or in any manner represent that it or any of its Contractor/Service Provider Related Individuals are employees or agents of City. Contractor/Service Provider shall not incur or have the power to incur any debt, obligation or liability whatsoever against City, or bind City in any manner. 8.9 Notices. All notices, demands or requests provided for or permitted to be given pursuant to this Agreement must be in writing. All notices, demands and requests to be sent to any Party shall be deemed to have been properly given or served if personally served or deposited in the United States mail, addressed to such Party, postage prepaid, registered or certified, with return receipt requested, at the addresses identified in this Agreement at the places of business for each of the designated Parties as indicated in Exhibit A, or otherwise provided in writing. (End of page. Next page is signature page.) 2021/11/16 City Council Post Agenda Page 67 of 141 10 City of Chula Vista Agreement No.: 2021-125 Consultant Name: JACOBS AND CUSHMAN SAN DIEGO FOOD BANK Rev. 10/24/17 SIGNATURE PAGE CONTRACTOR/SERVICE PROVIDER SERVICES AGREEMENT IN WITNESS WHEREOF, by executing this Agreement where indicated below, City and Contractor/Service Provider agree that they have read and understood all terms and conditions of the Agreement, that they fully agree and consent to bound by same, and that they are freely entering into this Agreement as of the Effective Date. JACOBS AND CUSHMAN SAN DIEGO FOOD BANK CITY OF CHULA VISTA BY:________________________________ BY: ________________________________ CASEY CASTILLO MARIA V. KACHADOORIAN INTERIM CHIEF EXECUTIVE OFFICER CITY MANAGER APPROVED AS TO FORM BY: ________________________________ Glen R. Googins City Attorney 2021/11/16 City Council Post Agenda Page 68 of 141 11 City of Chula Vista Agreement No.: 2021-125 Consultant Name: JACOBS AND CUSHMAN SAN DIEGO FOOD BANK Rev. 10/24/17 EXHIBIT A SCOPE OF WORK AND PAYMENT TERMS 1. Contact People for Contract Administration and Legal Notice A. City Contract Administration: Angelica Davis, Senior Management Analyst 276 4th Avenue, Bldg C. Chula Vista, CA 91910 619-691-5036 adavis@chulavistaca.gov For Legal Notice Copy to: City of Chula Vista City Attorney 276 Fourth Avenue, Chula Vista, CA 91910 619-691-5037 CityAttorney@chulavistaca.gov B. Contractor/Service Provider Contract Administration: JACOBS AND CUSHMAN SAN DIEGO FOOD BANK 9850 Distribution Ave, San Diego, CA 92121 (858) 527-1419 ccastillo@sandiegofoodbank.org For Legal Notice Copy to: Same as above 2. Required Services A. General Description: Contractor/Service Provider to provide food and essential items using American Rescue Plan Act from the City of Chula Vista. B. Detailed Description: Contractor/Service Provider shall follow the same certifications as the City when it comes to the use of American Rescue Plan ARPA Act. Contractor/Service Provider shall perform the following tasks: Task Description Deliverables Completion Date 1 Provide Chula Vista Food Bank partners with food/supplies to meet the increased demand. Distribute over 150,000 pounds of dry goods, fresh produce, and other commodities through Mobile Pantries and Food to Nonprofit Partners within the City of Chula Vista November 16, 2022 3. Term: In accordance with Section 1.10 of this Agreement, the term of this Agreement shall begin November 16, 2021 and end on November 16, 2022 for completion of all Required Services. 2021/11/16 City Council Post Agenda Page 69 of 141 12 City of Chula Vista Agreement No.: 2021-125 Consultant Name: JACOBS AND CUSHMAN SAN DIEGO FOOD BANK Rev. 10/24/17 4. Compensation: A. Form of Compensation For the performance of the Required Services to City’s satisfaction, City shall pay Contractor/Service Provider an amount not-to-exceed $100,000 for staffing, benefits, supplies, equipment, and indirect costs expended by November 16, 2022, as detailed on Attachment D. Contractor/Service Provider shall invoice City for such costs and services. Notwithstanding the foregoing, the maximum amount to be paid to the Contractor/Service Provider for costs and services performed through November 16, 2022 shall not exceed $100,000. 5. Special Provisions: ☒ None 2021/11/16 City Council Post Agenda Page 70 of 141 13 City of Chula Vista Agreement No.: 2021-125 Consultant Name: JACOBS AND CUSHMAN SAN DIEGO FOOD BANK Rev. 10/24/17 EXHIBIT B INSURANCE REQUIREMENTS Contractor/Service Provider shall adhere to all terms and conditions of Section 3 of the Agreement and agrees to provide the following types and minimum amounts of insurance, as indicated by checking the applicable boxes (x). Type of Insurance Minimum Amount Form ☒ General Liability: Including products and completed operations, personal and advertising injury $2,000,000 per occurrence for bodily injury, personal injury (including death), and property damage. If Commercial General Liability insurance with a general aggregate limit is used, either the general aggregate limit must apply separately to this Agreement or the general aggregate limit must be twice the required occurrence limit Additional Insured Endorsement or Blanket AI Endorsement for City* Waiver of Recovery Endorsement Insurance Services Office Form CG 00 01 *Must be primary and must not exclude Products/Completed Operations ☒ Automobile Liability $1,000,000 per accident for bodily injury, including death, and property damage Insurance Services Office Form CA 00 01 Code 1-Any Auto Code 8-Hired Code 9-Non Owned ☒ Workers’ Compensation Employer’s Liability $1,000,000 each accident $1,000,000 disease policy limit $1,000,000 disease each employee Waiver of Recovery Endorsement Other Negotiated Insurance Terms: None. 2021/11/16 City Council Post Agenda Page 71 of 141 14 City of Chula Vista Agreement No.: 2021-125 Consultant Name: JACOBS AND CUSHMAN SAN DIEGO FOOD BANK Rev. 10/24/17 EXHIBIT C CONTRACTOR/SERVICE PROVIDER CONFLICT OF INTEREST DESIGNATION The Political Reform Act1 and the Chula Vista Conflict of Interest Code2 (“Code”) require designated state and local government officials, including some Contractor/Service Providers, to make certain public disclosures using a Statement of Economic Interests form (Form 700). Once filed, a Form 700 is a public document, accessible to any member of the public. In addition, Contractor/Service Providers designated to file the Form 700 are also required to comply with certain ethics training requirements.3 ☒ A. Contractor/Service Provider IS a corporation or limited liability company and is therefore EXCLUDED4 from disclosure. ☐ B. Contractor/Service Provider is NOT a corporation or limited liability company and disclosure designation is as follows: APPLICABLE DESIGNATIONS FOR INDIVIDUAL(S) ASSIGNED TO PROVIDE SERVICES (Category descriptions available at www.chulavistaca.gov/departments/city-clerk/conflict-of-interest-code.) Name Email Address Applicable Designation Enter Name of Each Individual Who Will Be Providing Service Under the Contract – If individuals have different disclosure requirements, duplicate this row and complete separately for each individual Enter email address(es) ☐ A. Full Disclosure ☐ B. Limited Disclosure (select one or more of the categories under which the Contractor shall file): ☐ 1. ☐ 2. ☐ 3. ☐ 4. ☐ 5. ☐ 6. ☐ 7. Justification: ☐ C. Excluded from Disclosure 1. Required Filers Each individual who will be performing services for the City pursuant to the Agreement and who meets the definition of “Contractor/Service Provider,” pursuant to FPPC Regulation 18700.3, must file a Form 700. 2. Required Filing Deadlines Each initial Form 700 required under this Agreement shall be filed with the Office of the City Clerk via the City's online filing system, NetFile, within 30 days of the approval of the Agreement. Additional Form 700 filings will be required annually on April 1 during the term of the Agreement, and within 30 days of the termination of the Agreement. 3. Filing Designation The City Department Director will designate each individual who will be providing services to the City pursuant to the Agreement as full disclosure, limited disclosure, or excluded from disclosure, based on an analysis of the services the Contractor/Service Provider will provide. Notwithstanding this designation or anything in the Agreement, the Contractor/Service Provider is ultimately responsible for complying with FPPC regulations and filing requirements. If you have any questions regarding filing requirements, please do not hesitate to contact the City Clerk at (619)691-5041, or the FPPC at 1-866-ASK-FPPC, or (866) 275-3772 *2. Pursuant to the duly adopted City of Chula Vista Conflict of Interest Code, this document shall serve as the written determination of the Contractor’s requirement to comply with the disclosure requirements set forth in the Code. 1 Cal. Gov. Code §§81000 et seq.; FPPC Regs. 18700.3 and 18704. 2 Chula Vista Municipal Code §§2.02.010-2.02.040. 3 Cal. Gov. Code §§53234, et seq. 4 CA FPPC Adv. A-15-147 (Chadwick) (2015); Davis v. Fresno Unified School District (2015) 237 Cal.App.4th 261; FPPC Reg. 18700.3 (Consultant defined as an “individual” who participates in making a governmental decision; “individual” does not incl ude corporation or limited liability company). 2021/11/16 City Council Post Agenda Page 72 of 141 15 City of Chula Vista Agreement No.: 2021-125 Consultant Name: JACOBS AND CUSHMAN SAN DIEGO FOOD BANK Rev. 10/24/17 Completed by: Angelica Davis, DSD-Housing Sr Management Analyst 2021/11/16 City Council Post Agenda Page 73 of 141 16 City of Chula Vista Agreement No.: 2021-125 Consultant Name: JACOBS AND CUSHMAN SAN DIEGO FOOD BANK Rev. 10/24/17 EXHIBIT D BUDGET Budget Line Item Amount Food and Supplies $100,000 2021/11/16 City Council Post Agenda Page 74 of 141 RESOLUTION NO. __________ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING THE AMERICAN RESCUE PLAN ACT SPENDING PLAN AND APPROVING AN AGREEMENT WITH THE JACOBS AND CUSHMAN SAN DIEGO FOOD BANK AND REALLOCATING FUNDS THEREFOR WHEREAS, on March 11, 2021, the United States Congress passed the American Rescue Plan Act of 2021 (“ARPA”) – CDFA 21.027, which provides fiscal relief funds to State and Local Governments, and other program areas aimed at mitigating the continuing effects of the COVID-19 Pandemic; and WHEREAS, ARPA is intended to provide support to local governments in responding to the impact of COVID-19 and in their efforts to contain COVID-19 in their communities, residents, and businesses; and WHEREAS, ARPA includes State and Local Fiscal Recovery Funds to support urgent COVID response efforts to decrease the spread of the virus; to replace lost public sector revenue to strengthen support for vital public services; to support immediate economic stabilization for households and businesses; and to address systemic public health and economic challenges that have contributed to inequal impacts of the pandemic on certain populations; and WHERAS, the United States Department of Treasury has adopted the interim final rule as guidance regarding the use of ARPA Funds; and WHEREAS, the City of Chula Vista will receive $57,535,251 in two tranches with $28,767,625 provided in May 2021 and the remaining $28,767,625 to be received twelve months later; and WHEREAS, the City Council intends to expend a portion of the first tranche of the City’s ARPA Funds in accordance with Federal Law and guidance, for the current critical needs and priorities including the provision of food services; and WHEREAS, the City has identified a new activity under the public health category which addresses an urgent need within the community; and WHEREAS, Staff has determined that the Jacobs and Cushman San Diego Food Bank is experienced and staffed in a manner such that they can prepare and deliver the services required by the City; and WHEREAS, in order for an outside agency or City Department to receive and operate a federally funded activity, they must formally enter into a Subrecipient Agreement. 2021/11/16 City Council Post Agenda Page 75 of 141 NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Chula Vista that it: 1. Approves the City of Chula Vista Contractor/Service Provider Services Agreement with Jacobs and Cushman San Diego Food Bank to Provide Food Services Due to the Public Health Emergency With Respect To The Coronavirus Disease 2019 (Covid-19), in the form presented, with such minor modifications as may be required or approved by the City Attorney, authorizes and directs the City Manager to execute the agreement, and directs a copy of the agreement to be kept on file with the Office of the City Clerk. 2. Amends The American Rescue Plan Act Spending Plan and reallocates funds within the American Rescue Plan Act 2021 Fund (Fund 268) as follows: Economic Development Category - Choose Chula project ($100,000) Public Health Category – Jacobs and Cushman San Diego Food Bank $100,000 Presented by Approved as to form by Tiffany Allen Glen R. Googins Director of Development Services City Attorney 2021/11/16 City Council Post Agenda Page 76 of 141 From: Jose I Monge <jmneonsd@gmail.com> Sent: Thursday, November 11, 2021 4:38 PM To: CityClerk <CityClerk@chulavistaca.gov> Subject: Public Comment. I have difficulty placing these comments to the city website. 1.) Drive Now SD, LLC is small business in Chula Vista we started in August and want to operate a Shared Micro Mobility scooter business city wide. We are in the application process and unable to process the permit due to high insurance restrictions the city has. A policy that meets city requirements will cost well over $500,000. We need help to get this permit approved and operate as the city's first privately owned e scooter business we need help and support from the council to look into the the insurance requirements to make the more accessible to a small business like us. 2.) Driving the green initiative is the city of Chula Vista. Drive Now SD, LLC's ready to commit long term in Chula Vista's shared micro mobility program with up to 1000 scooters city wide. We cannot achieve this ambitious goal without the support of the city to help us with possible funding. Small business cannot grow without the support of the community & city with insurance restrictions re evaluated and support we can meet this goal. Can the council support us in our ambitious goal. Jose I. Monge 6194964912 Warning: External Email Written Communications Monge - Received 11/15/2021 2021/11/16 City Council Post Agenda Page 77 of 141 v . 0 03 P a g e | 1 November 16, 2021 ITEM TITLE Long-Term Financial Plan : Acceptance of the General Fund Long-Term Financial Plan – Fiscal Years 2023- 2032 Report Number: 21-0211 Location: No specific geographic location Department: Finance Environmental Notice: The activity is not a "Project" as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required. Recommended Action Accept the General Fund Long-Term Financial Plan – Fiscal Years 2023 – 2032 report. SUMMARY The City of Chula Vista Fiscal Years 2023 – 2032 General Fund Long-Term Financial Plan (LTFP) serves as a long-range fiscal planning tool to identify financial trends, identify projected budgetary surpluses or shortfalls, and encourage discussion to proactively address the City’s long-range needs. The goal of the LTFP is to assess the City’s ability over the term of the plan to: maintain current or expand service levels; preserve the City’s long-term fiscal health; and strategically increase the City’s reserve funds to meet the City’s reserve policies thresholds. The LTFP served as a guideline for the development of the current Fiscal Year (FY) 2022 General Fund budget but is only applicable for the City’s General Fund. Information related to the City’s non- General Fund funds can be found on the City’s website within the FY 2022 Adopted Budget (www. chulavista.gov). ENVIRONMENTAL REVIEW The Development Services Director has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a “Project” as defined under Section 15378 of the State CEQA Guidelines because the proposed activity consists of a governmental fiscal/administrative activity which does not result in a physical change in the environment; therefore, 2021/11/16 City Council Post Agenda Page 78 of 141 P a g e | 2 pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA. Thus, no environmental review is required. BOARD/COMMISSION/COMMITTEE RECOMMENDATION Not applicable. DISCUSSION The City of Chula Vista Fiscal Years 2023 – 2032 General Fund Long-Term Financial Plan (LTFP) serves as a long-range fiscal planning tool to identify financial trends, identify projected budgetary surpluses or shortfalls, and encourage discussion to proactively address the City’s long-range needs. The LTFP focuses on baseline revenues and expenditures that are essential for the City to achieve the City’s strategic goals over the next ten years. These goals include: • Providing the highest level of municipal services based upon available resources • Maintaining safe and appealing neighborhoods • Providing funding for City infrastructure • Continuing to expand the City’s economic development and financial base It is important to emphasize that the LTFP is not a budget. It does not make expenditure decisions but rather highlights the need to prioritize the allocation of City resources to ensure the continuation of core City services. The purpose of the plan is to provide the City Council, key stakeholders, and the public an overview of the City’s fiscal health based on various financial and service level assumptions over the next ten years; and allow for the discussion of necessary steps to be initiated during the development and implementat ion of future budgets. The LTFP is intended to look beyond the annual budget cycle and serve as a planning tool to bring a long-term perspective to the budget process. Should projected expenditures exceed projected revenues in any given year; the City Manager will need to identify steps to mitigate the shortfalls prior to presenting a balanced budget to the City Council for consideration during the annual budget development process. Summary of Financial Projections Based on projections from the LTFP, overall General Fund revenues are anticipated to increase from FY 2023 to FY 2027. However, General Fund revenues are anticipated to decrease in FY 2028 from prior years due to the scheduled conclusion of the citizen-approved Measure P Sales Tax. FY 2027 includes a partial year of Measure P revenues and FY 2028 is the first full year of excluding Measure P revenues from the General Fund revenue totals. The projected revenues also include revenues from the Measure A Sales tax approved by the citizens of Chula Vista in FY 2019. Revenues from Measure A are continued throughout the term of the LTFP as this sales tax will remain does not have sunset date. General Fund revenues resume the trend of slight increases from the prior year in FY 2030. Adding to the City’s positive long‐term financial outlook is the recent issuance of $350 million in pension obligation bonds (POBs) to fund pension/retirement costs. The City’s POBs should result in approximately $13 million in savings to the FY 2023 All Funds budget alone due to the early extinguishment of the current unfunded accrued liability (UAL) to CalPERS. The majority of the pension cost savings are being set aside in an Internal Revenue Code Section 115 pension and bond call trust fund which will help mitigate future 2021/11/16 City Council Post Agenda Page 79 of 141 P a g e | 3 increases from pension and other post‐employment benefits costs, or provide the City the opportunity to pay off the bonds earlier. Notably, the POBs were issued with a Standard and Poor’s Global Ratings extremely strong ‘AA’ credit rating at historically low interest rates. Based on baseline projections for current service levels, growth in expenditures is anticipated to outpace the growth in revenues for most of the LTFP period. This projected long-term structural shortfall budget deficits for most years in the LTFP. As shown on the following table, FY 2023 is projected to have a $1.2 million surplus, and the overall General Fund deficits are projected to grow from approximately $1.5 million in FY 2024 to $12.0 million in FY 2031. In FY 2032, the anticipated annual deficit will decrease to $3.4 million due to the end of the Section 115 Trust contribution that is scheduled for 10-years under the expenditures category (FY 2022 to FY 2031). The following table presents the 10-year financial forecast for the General Fund for FY 2023 through FY 2032. Additional information related to forecasted revenues and expenditures is provided within the attached report. (1) Other Revenues is the total of the following budget revenue categories: Development Revenue, Licenses and Permits, Fines, Forfeitures & Penalties, Use of Money and Property, Other Local Taxes, Police Grants, Other Agency Revenue, Charges for Services, Interfund Reimbursements, Other Revenues - Miscellaneous, and Transfers from Other Funds. (2) New Development Revenues & New Development Expenditures are for revenues and expenditures projected for the new Bayfront Fire Station and Otay Ranch Village 8 Development anticipated to come online during LTFP term. (3) Other Expenditures is the total of the following expenditure categories: Supplies and Services, Utilities, Other Expenses, Equipment, Internal Services, and Transfers/Debt Service. 2021/11/16 City Council Post Agenda Page 80 of 141 P a g e | 4 It should be noted the projections within the LTFP do not incorporate any economic downturn during the LTFP period and are based on conservative revenue and expenditure assumptions. Any economic downturn, depending upon the breath and duration of the downturn, would negatively impact the projections within the LTFP. LTFP Outline (ATTACHMENT 1) The LTFP includes a brief overview of the current economic environment and information on potential factors that could impact the City’s fiscal position in the near-term and long-term. Following the economic updates, information will be provided on the major revenue/expenditure categories shown within the LTFP. This information will provide brief descriptions of the revenues/expenditures, and highlight certain factors which could impact the revenues/expenditure projections. Financial projections for the term of the LTFP will be presented following the highlighted revenues and expenditures. Significant results of the financial projections will be noted following the financial table. Finally, the LTFP presents potential mitigation actions for discussion. No single, specific action is identified as a solution to resolving the City’s projected shortfalls. Based upon discussion and input from the City Council and the public, City staff can develop additional information related to the identified actions for consideration. Staff will continue to monitor the budget closely and report to the City Council through the Budget Monitoring process. DECISION-MAKER CONFLICT Staff has reviewed the decision contemplated by this action and has determined that it is not site-specific and consequently, the real property holdings of the City Council members do not create a disqualifying real property-related financial conflict of interest under the Political Reform Act (Cal. Gov't Code § 87100, et seq.). Staff is not independently aware, and has not been informed by any City Council member, of any other fact that may constitute a basis for a decision-maker conflict of interest in this matter. CURRENT-YEAR FISCAL IMPACT There is no current year fiscal impact related to this report on the General Fund. ONGOING FISCAL IMPACT Staff will monitor and incorporate impacts to the General Fund LTFP in future quarterly budget monitoring reports to the City Council. ATTACHMENTS 1. General Fund Long-Term Financial Plan – Fiscal Years 2023-2032 Staff Contact: Sarah Schoen, Finance Director 2021/11/16 City Council Post Agenda Page 81 of 141 2021/11/16 City Council Post Agenda Page 82 of 141 FY2023-2032 City of Chula Vista – General Fund Long-Term Financial Plan 1 CONTENTS EXECUTIVE SUMMARY ...................................................................................................................................... 2 REPORT OUTLINE .......................................................................................................................................................... 3 COMPLIANCE ................................................................................................................................................................... 3 CITY PROFILE .................................................................................................................................................................. 4 CITY STRATEGIC PLAN ................................................................................................................................................ 6 SUMMARY OF FINANCIAL PROJECTIONS ............................................................................................................. 7 ECONOMIC OVERVIEW ...................................................................................................................................... 9 CORONAVIRUS DISEASE 2019 (COVID-19) ......................................................................................................... 9 AMERICAN RESCUE PLAN ACT OF 2021 .............................................................................................................. 9 ECONOMIC FORECAST .............................................................................................................................................. 10 MAJOR REVENUES AND EXPENDITURES .................................................................................................. 15 REVENUES ..................................................................................................................................................................... 15 EXPENDITURES ........................................................................................................................................................... 20 PENSION OBLIGATION BONDS .............................................................................................................................. 24 CAPITAL EXPENDITURES ........................................................................................................................................ 25 OUTSTANDING CITY DEBT ..................................................................................................................................... 26 FACTORS NOT INCLUDED IN THE PLAN ................................................................................................... 28 10 YEAR PROJECTIONS .................................................................................................................................. 29 GENERAL FUND RESERVES .................................................................................................................................... 32 POTENTIAL SOLUTIONS FOR ADDRESSING STRUCTURAL OPERATING DEFICIT ...................... 34 POTENTIAL SOLUTIONS TO RESOLVE STRUCTURAL INFRASTRUCTURE DEFICIT ................... 36 CONCLUSION ...................................................................................................................................................... 37 2021/11/16 City Council Post Agenda Page 83 of 141 FY2023-2032 City of Chula Vista – General Fund Long-Term Financial Plan 2 EXECUTIVE SUMMARY The City of Chula Vista Fiscal Years 2023 – 2032 General Fund Long-Term Financial Plan (LTFP) serves as a long-range fiscal planning tool to identify financial trends and project budgetary surpluses or shortfalls, and encourage discussion to proactively address the City’s long-range needs. The goal of the LTFP is to assess the City’s ability over the term of the plan to: maintain current or expand service levels; preserve the City’s long-term fiscal health; and strategically increase the City’s reserve funds to meet the City’s reserve policies thresholds. The LTFP will also serve as a guideline for the development of the Fiscal Year (FY) 2023 General Fund budget. The LTFP is only applicable for the City’s General Fund. The General Fund serves as the principal pool of revenues and expenditures that finance the City’s core, day-to-day and long-term operating expenses. General Fund resources are typically unrestricted as to use and make up approximately 50% of all City resources (All Funds). Information related to the City’s non-General Fund funds can be found on the City’s website within the FY 2022 Adopted Budget (https://www.chulavistaca.gov). The LTFP focuses on baseline revenues and expenditures that are essential for the City to achieve the City’s strategic goals over the next ten years.1 These goals include: • Providing the highest level of municipal services based upon available resources • Maintaining safe and appealing neighborhoods • Providing funding for City infrastructure • Continuing to expand the City’s economic development and financial base It is important to emphasize that the LTFP is not a budget. The LTFP does not make expenditure decisions but rather highlights the need to prioritize the allocation of City resources to ensure the continuation of core City services. The purpose of the plan is to provide the City Council, key stakeholders, and the public an overview of the City’s fiscal health based on various financial and service level assumptions over the next ten years, and also allow for the discussion of necessary steps to be initiated during the development and implementation of future budgets. The LTFP is intended to look beyond the annual budget cycle, serving as a planning tool to bring a long-term perspective to the budget process. Should projected expenditures exceed projected revenues in any given year, the City Manager will need to identify steps to mitigate the shortfalls prior to presenting a balanced budget to the City Council for consideration during the annual budget development process. 1 The City’s Strategic Plan can be found on the City’s website: (https://www.chulavista.gov/departments/finance/budget-information). 2021/11/16 City Council Post Agenda Page 84 of 141 FY2023-2032 City of Chula Vista – General Fund Long-Term Financial Plan 3 REPORT OUTLINE The LTFP report includes a brief overview of the current economic environment and information on potential factors that could impact the City’s fiscal position in the near-term and long-term. Following the economic updates, information will be provided on the major revenue/expenditure categories shown within the LTFP. This information will provide brief descriptions of the revenues/expenditures, assumptions, and highlights of certain factors that could impact the revenues/expenditure projections. Financial projections for the term of the LTFP will be presented following the highlighted revenues and expenditures. Significant results of the financial projections will be noted following the financial table. Next, the LTFP presents potential budget mitigation actions for discussion. No single, specific action is identified as a solution to resolving the City’s projected shortfalls. Based upon discussion and input from the City Council and the public, City staff can provide additional information and develop recommendations related to addressing future budget shortfalls. COMPLIANCE The LFTP report conforms with the City’s 100-01 General Financial Policy requirements: Budget Development • Identify the resources required to fund identified programs and activities, and enable accomplishment of program objectives. • Maintain a balanced operating budget. Operating revenues will fully cover operating expenditures, including debt service, each fiscal year • Track revenues and expenditures on an on-going basis, and attempt to anticipate future trends beyond the current budget cycle in order to maintain a balanced budget. • Utilize a ten-year financial plan and a long-term financial forecast model to promote orderly spending patterns, engage in long-range planning, and reduce the time and resources spent preparing annual budgets. Revenue Management • Endeavor to maintain a diversified and stable revenue base. • Revenue projections will be maintained for the current year and for future fiscal years, and estimates will be based on a conservative, analytical, and objective process. Financial Constraints and Expenditure Management • Track expenditures to evaluate trends and identify potential issues that will affect the budget. 2021/11/16 City Council Post Agenda Page 85 of 141 FY2023-2032 City of Chula Vista – General Fund Long-Term Financial Plan 4 CITY PROFILE The City of Chula Vista is located at the center of one of the richest cultural, economic and environmentally diverse zones in the United States. It is the second largest City in San Diego County with a population of approximately 275,000. Chula Vista boasts more than 52 square miles of coastal landscape, canyons, rolling hills, mountains, quality parks, and miles of trails. Chula Vista is a leader in conservation and renewable energy, has outstanding public schools, and has been named one of the top safest cities in the country. The City serves as a base for strong education, clean technology, and manufacturing to its growing and middle class. Chula Vista Center in the downtown area boasts major retailers, dining, movie theaters, and more than 100 fine specialty shops. Third Avenue Village, billed as the cultural center of the city, features historic buildings, unique shops, landmark restaurants, a brewery and seasonal outdoor music concerts. Established neighborhoods, modern communities, startup firms, corporations, nationally recognized entertainment venues, the Chula Vista Elite Athlete Training Center, 65 parks, an award-winning Living Coast Discovery Center, and a historic downtown all contribute to Chula Vista’s attraction for both families and businesses. The Chula Vista Bayfront is currently being transformed into a thriving residential and world-class waterfront resort destination. The Bayfront Development will establish thousands of new jobs, create new public parks, protect natural coastal resources, provide conference and visitor-serving amenities and build an important catalyzing asset for the region. For more information regarding the City of Chula Vista, please visit our website at www.chulavistaca.gov. 2021/11/16 City Council Post Agenda Page 86 of 141 FY2023-2032 City of Chula Vista – General Fund Long-Term Financial Plan 5 General Information Population by Ethnic Group Incorporated………..………………..1911 Government….…...Council/Manager Bond Rating………………..……...……AA- Population Population…………….………….274,449 Median Age…………….…..…………..32.8 Source: California Department of Finance, Population Estimates, 2020 Facilities Acres of Developed Parks........701.1 Total Number of Parks…..……..…..65 Libraries.…………………………..…........3 Recreation Facilities……….……..….11 Population Growth Source: California Department of Finance, Population Estimates, 2020 & 2021 *2021 figures are projected. Household Income Source: San Diego Association of Governments, Current Estimates, 2020 230 240 250 260 270 280 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021*Thousands9% 12%12%11%10% 15% 12% 6%7%6% 0% 2% 4% 6% 8% 10% 12% 14% 16%Percent of TotalSource: California Department of Finance, Population Estimates, 2020 2021/11/16 City Council Post Agenda Page 87 of 141 FY2023-2032 City of Chula Vista – General Fund Long-Term Financial Plan 6 CITY STRATEGIC PLAN The City’s Strategic Plan is an important management tool to guide operations, assessing the current environment and envisioning the future, to increase effectiveness, organizational commitment and consensus of City strategies and objectives. The Strategic Plan provides a comprehensive framework that ensures priorities set by the Council are clear to all employees and that the City government is accountable to meeting community needs by setting objectives to meet identified goals. The City has set five core goals critical to achieving our shared vision of ensuring a vibrant and sustainable quality of life for Chula Vista residents and businesses: Operational Excellence Economic Vitality Healthy Community Strong and Secure Neighborhoods Connected Community The City’s full Strategic Plan can be accessed at the following link: https://www.chulavistaca.gov/departments/city-manager/strategic-plan 2021/11/16 City Council Post Agenda Page 88 of 141 FY2023-2032 City of Chula Vista – General Fund Long-Term Financial Plan 7 SUMMARY OF FINANCIAL PROJECTIONS Staff forecasts primary General Fund revenues and expenditures based on current and known conditions, historical performance and consultation from subject matter experts. Based on projections from the LTFP, overall General Fund revenues are anticipated to increase from FY 2023 to FY 2027. However, General Fund revenues are anticipated to decrease in FY 2028 from prior years due to the scheduled conclusion of the citizen-approved Measure P Sales Tax.2 FY 2027 includes a partial year of Measure P revenues and FY 2028 is the first full year of excluding Measure P revenues from the General Fund revenue totals. The projected revenues also include revenues from the Measure A Sales tax approved by the citizens of Chula Vista in FY 2019. Revenues from Measure A are continued throughout the term of the LTFP as this sales tax does not have a sunset date. General Fund revenues resume the trend of moderate increases from prior years in FY 2030. Adding to the City’s overall positive long-term financial outlook is the recent issuance of $350 million in pension obligation bonds (POBs) at historically low interest rates. The City’s POBs should result in approximately $13 million in savings to the FY 2023 All Funds budget alone due to the early extinguishment of the current pension liability—known as the unfunded accrued liability (UAL)—to CalPERS. The majority of these pension cost savings are being set aside in an Internal Revenue Code Section 115 pension and bond call trust fund which will help mitigate future increases from pension and other post-employment benefits costs, or provide the City the opportunity to pay off the bonds earlier. Notably, the POBs were issued with a Standard and Poor’s Global Ratings extremely strong ‘AA’ credit rating. Based on baseline projections for current service levels, growth in expenditures is anticipated to outpace the growth in revenues for most years of the LTFP period 3. This projected long-term structural shortfall generates budget deficits for each year of the LTFP. As shown on the following table, the overall General Fund deficits are projected to increase from approximately $1.5 million in FY 2024 to $12.0 million in FY 2031. In FY 2032, the anticipated annual deficit will decrease to $3.4 million due to the end of the Section 115 Trust contribution that is scheduled for 10-years under the expenditures category (FY 2022 to FY 2031). In development of the LTFP projections, staff reviewed historical budgeted and actual figures, reviewed current data, and researched current financial trends. Based on the information collected, continued growth in revenues and expenditures is anticipated throughout the LTFP period; however, staff employed a conservative approach in developing the projections based on City policy. Uncertainty related to several key factors impacting the economy (discussed in detail later in this report) has led staff to moderate growth expectations. It should be noted that these projections do not incorporate any economic downturn during the LTFP period. Any economic downturn during 2 Annual revenues generated from the citizen-approved Measure P Sales Tax are reflected in the overall General Fund revenue totals (Ordinance No. 3371, Chula Vista Municipal Code Chapter 3.33). Revenues generated from Measure P are transferred from the General Fund into a separate Measure P Fund for monitoring and accountability. 3 Transfers and expenditures/encumbrances (obligations) related to the Measure P and Measure A Sales tax measures equal the projected revenues each year resulting in a net zero impact to the General Fund for these items. 2021/11/16 City Council Post Agenda Page 89 of 141 FY2023-2032 City of Chula Vista – General Fund Long-Term Financial Plan 8 the term of the LTFP would negatively impact the LFTP projections. Projections within the LTFP will be re-evaluated based upon future economic activity and available data. The following table presents the financial forecast for the General Fund for FY 2023 through FY 2032. A detailed table is provided in the 10-Year Projections section of this document. (1) Other Revenues is the total of the following budget revenue categories: Development Revenue, Licenses and Permits, Fines, Forfeitures & Penalties, Use of Money and Property, Other Local Taxes, Police Grants, Other Agency Revenue, Charges for Services, Interfund Reimbursements, Other Revenues - Miscellaneous, and Transfers from Other Funds. (2) New Development Revenues & New Development Expenditures are for revenues and expenditures projected for the new Bayfront Fire Station and Otay Ranch Village 8 Development anticipated to come online during LTFP term. (3) Other Expenditures is the total of the following expenditure categories: Supplies and Services, Utilities, Other Expenses, Equipment, Internal Services, and Transfers/Debt Service. 2021/11/16 City Council Post Agenda Page 90 of 141 FY2023-2032 City of Chula Vista – General Fund Long-Term Financial Plan 9 ECONOMIC OVERVIEW CORONAVIRUS DISEASE 2019 (COVID-19) The novel coronavirus (COVID-19) pandemic emerged in early 2020 and brought about new public health measures, disruptions to economic activity and loss of life worldwide. Significant unanticipated City expenditures and impacts on City revenues related to the pandemic began in late FY 2020 and were expected to linger well into FY 2022, and perhaps FY 2023. Due to years of prudent financial oversight and sound fiscal policies, the City of Chula Vista has been well-positioned to manage through the unprecedented challenge of the COVID19 public health and economic crises and although the City did experience impacts to revenue and expenditures it was able to weather the effects of COVID19 without the use of General Fund reserves. Federal funding from the Coronavirus Aid, Relief, and Economic Security (CARES) Act received via the County and State partially offset the initial costs associated with the City’s COVID-19 response, including testing centers, personal protective equipment (PPE), public safety personnel, and direct financial assistance. City General Fund revenues from hotel taxes, parking, entertainment venues, recreation programs and various services were negatively impacted by health and business restrictions, and overall recessionary impacts related to COVID-19. On the other hand, residential property and sales tax revenues have remained strong, driven by a competitive housing market and growing online retail sales captured by the South Dakota v. Wayfair Supreme Court decision.4 The City anticipates revenues to largely return to pre-pandemic levels by late FY 2022. Staff will continue to monitor and incorporate impacts from the pandemic into the LTFP in future quarterly budget monitoring reports to the City Council. . AMERICAN RESCUE PLAN ACT OF 2021 The City of Chula Vista will be receiving approximately $57.5 million in one-time, allocated federal aid via the American Rescue Plan Act (ARPA) of 2021, a $1.9 trillion economic stimulus bill passed by Congress and signed into law by President Biden on March 11, 2021. Congress’s intent with ARPA was to accelerate the United States’ recovery from the COVID-19 pandemics impacts on the economy and public health. Half of the ARPA funds ($28.8 million) were received by the City in FY 2020-21 and the second half ($28.8 million) will be received in late FY 2021-22. Based on U.S. Department of Treasury guidelines, funding must be obligated by December 31, 2024 and expended by December 31, 2026. These funds are not included in the FY 2022 Adopted Budget as the official notice from the United States Treasury had not yet been received by the time of budget development and adoption. 4 On June 21, 2018 in the South Dakota v. Wayfair case, the US Supreme Court ruled that states can mandate businesses without a physical presence (e.g., online retailers) in a state but with more than 200 transactions or $100,000 in-state sales to collect and remit sales taxes on transactions in the state. The landmark ruling upended the physical presence requirements for imposing sales tax collection on businesses. Aligning with federal tax policy, on April 25, 2019, California passed Assembly Bill 147 to update its Revenue and Taxation Code to require retailers outside of California (remote sellers) to collect California use tax if the total combined sales of tangible personal property delivered in California by the retailer exceeds $500,000. 2021/11/16 City Council Post Agenda Page 91 of 141 FY2023-2032 City of Chula Vista – General Fund Long-Term Financial Plan 10 Initial guidelines indicate that agencies may use ARPA funds to: fund government services to the extent of lost revenue; support economic development recovery directly to households, businesses and industries; offer premium pay to essential workers; fund water, sewer and broadband infrastructure; and provide a diversity of COVID-19 support to the community. Staff recently brought forth an ARPA spending plan for public and City Council consideration on August 24, 2021 which was subsequently unanimously adopted. The ARPA allocation plan was strategically created to reduce the effort to provide ongoing reporting of expenditures to the Treasury and provide the city flexibility in revenue recovery funds for projects and programs that are important to our community. The replacement of lost revenues—with a presumed connection to COVID-19 impacts—represents a unique opportunity to fund critical infrastructure projects, operational support and economic development activities. The list of funded projects was selected from a larger list that was submitted to the City Manager’s office by each City department. The City Manager’s office reviewed the list and prioritized projects that represented a “risk” or negative fiscal impact to the General Fund and provided operational support and invested in key economic development projects, such as small business grants and the University and Innovation District project. Staff will incorporate impacts of the ARPA funding to the General Fund LTFP in future budget monitoring periods. For more information on ARPA projects, please visit our website: https://www.chulavistaca.gov/departments/american-rescue-plan-act-of-2021 ECONOMIC FORECAST Over a year and a half has passed since the onset of the COVID-19 global pandemic and an abrupt global economic decline related to the public health restrictions and economic uncertainties. The City is now in a transitional stage, moving from pandemic response to economic recovery. In recent UCLA Anderson Forecasts, economists predict 2021 will bring strong economic growth following the worst economic decline in 60 years. Though gross domestic product (GDP), a metric for estimating the size of a country’s economy, declined by 3.5% in 2020, government action—business loans, unemployment insurance, and direct aid—has helped the United States rebound as it works to reduce the spread of COVID-19. In recent months economists continue to be optimistic about the economy while also acknowledging that economic data is difficult to interpret amid the relatively rapid economic turnaround. Economists note “base effects” (e.g., comparing recent conditions to the prior year’s extreme conditions), supply issues related to COVID-19, and other anomalies in the recent data pointing to what may be only transitory inflation. The UCLA Anderson Forecast predicts annual inflation peaking at 2.7% in 2021 before declining to 2.23% in 2023. On the jobs front, the Forecast projects a continued decline in the national unemployment rate, reaching the pre-pandemic levels by the end of 2022. Employment rates will continue to be impacted by wage pressures, childcare constraints, perceived COVID-19 exposure, generous unemployment insurance, and other “structural” issues such as jobs-skills mismatch, jobs-geography mismatch, and technological changes. 2021/11/16 City Council Post Agenda Page 92 of 141 FY2023-2032 City of Chula Vista – General Fund Long-Term Financial Plan 11 The UCLA Anderson Forecast is based on the major assumption that the United States will continue to see a drop in COVID-19 cases and an increase in vaccination rates, leading to a full economic reopening by early July 2021. The professional services, leisure and hospitality, recreation and healthcare sectors will likely experience the fastest growth initially due to pent-up demand from the lifting of travel and operating restrictions. While the outlook for the economy is positive, uncertainty remains around the ongoing COVID-19 pandemic with new coronavirus variants emerging as well as further federal fiscal stimulus, such as a federal infrastructure plan. The Federal Open Market Committee (FOMC), part of the Federal Reserve, is committed to Congress’s mandate to promote maximum employment, stable prices and moderate long-term interest rates. In recent meetings, the Federal Reserve decided to maintain the target range for the federal funds rate at 0.00% to 0.25%. The COVID-19 pandemic has greatly challenged the United States economy over the past year, but indications of economic recovery and employment gains have emerged and will only be bolstered by new fiscal policy measures to directly aid U.S households and businesses. The FOMC will be patient in any adjustments to the target rate range until labor market conditions improve and inflation has consistently risen to 2% for the long-term. The federal funds rate is important, setting the interest rate at which banks lend money to other banks to maintain overnight reserves. The federal funds rate also influences interest rates on other borrowing, such as credit cards, mortgages and bank loans. This latest FOMC report signals an unlikelihood of increasing interest rates in the near term, while market expectations for future inflation have grown. In addition to providing a national forecast, UCLA Anderson economists also prepare a California specific economic forecast. California’s recovery is expected to be faster than the rest of the U.S., albeit delayed due to more stringent state COVID-19 restrictions on business operations, travel, and vaccine rollout as compared to other states. Economists note leisure and hospitality sectors will have the most ground to recover. Residential construction is expected to recover quickly due to California’s housing shortage and strong demand. UCLA Anderson economists also predict California’s average unemployment rate for years 2021, 2022 and 2023 will be 7.1%, 5.2% and 4.3%, respectively. Total employment growth for 2021, 2022 and 2023 is forecasted at 5.6%, 3.1%, and 2.2%. As noted throughout the economic overview, while the economy is recovering and consumer confidence is becoming more positive, there are concerns related to the future growth of the economy for various reasons. Three key measures staff will continue to monitor as important measures to the City’s financial projections are: inflation, housing activity, and the yield curve. Inflation is a measure of the increase for the cost of goods and services. Housing activity impacts property tax revenue which is the City’s largest revenue source. And the yield curve (difference between short-term and long-term investments) is widely held as a strong indicator of future economic activity. Brief information on these three factors follows. Inflation Inflation is the rate at which prices for goods and services increase over time, measured by the 2021/11/16 City Council Post Agenda Page 93 of 141 FY2023-2032 City of Chula Vista – General Fund Long-Term Financial Plan 12 Consumer Price Index (CPI). Normally, inflation averages between 2% to 3% per year. There are multiple factors that impact inflation including but not limited to: increases in wages which normally drives an increase in employer costs and product prices; an increase in interest rates as it costs more to borrow funds for investments; and an increase in product demand. Inflation impacts many of the City’s revenue and expenditure categories. For revenues, inflation impacts rents, leases, fees, and investment returns to name a few. Additionally, inflation impacts expenditures such as service contracts, costs of materials, and borrowing costs. According to a July 2021 U.S. Bureau of Labor Statistics report, the Consumer Price Index (a broad measure for inflation) increased 6.0% in July from a year earlier, the biggest increase since June 2008.5 Economists continue to debate whether inflation is temporary and perhaps reflecting COVID-19 pandemic trends, such as supply bottlenecks and resurging consumer demand for travel, services and dining out. Economists will also continue to watch for the Federal Reserve increasing interest rates that could ultimately slow economic growth, earnings and stock price growth. Housing Aside from the Federal Reserve’s focus on labor and inflation, housing data remains a leading indicator of economic activity. The Federal Reserve is carefully watching the recent housing market boom as strong demand has sent prices soaring over the last year. Concerns are over home affordability while the U.S. economy begins to reopen and rebound, but there is less fear of a housing market crash due to improved borrowing policies. The Federal Reserve’s promise to keep interest rates near zero in the near-term has kept mortgage rates low and improved homeownership rates. According to the U.S. Census Economic Indicators from August 2021, the sales of new single-family houses were at a seasonally adjusted annual rate of 740,000, which was 24.3% below the August 2020 estimate of 977,000 6. The median sales price of new homes sold in August 2021 was $390,000 while the average price was $443,200. Locally, the County of San Diego Office of Financial Planning also provides a summary of the economic indicators for San Diego every month. The County both contributes their own analysis and sources information from the Bureau of Labor Statistics, San Diego Association of REALTORS, InnoVest Resource Management, and the American Association and U.S Energy Information Administration. In their November 2020 report, the County reported single-family housing was on the market for an average of 19 days, the median price was unchanged at $751,700, and a decrease of 16.0% in homes sold compared to November 2019 7. In November 2020, there were 16 foreclosures in San Diego County, 54% lower than one year prior. Foreclosures have been impacted by mortgage forbearances as part of California’s COVID-19 response. More recent data from the California Association of Realtors indicate the median price of a single-family home in San Diego 5 U.S. Bureau of Labor Statistics, July 2021 “Consumer Price Index – July 2021” 6 U.S. Census Bureau, September 2021 “Monthly New Residential Sales, August 2021” 7 County of San Diego, San Diego Regional Economic Indicators. See: https://www.sandiegocounty.gov/content/sdc/fg3/reiindex.html 2021/11/16 City Council Post Agenda Page 94 of 141 FY2023-2032 City of Chula Vista – General Fund Long-Term Financial Plan 13 County rose from $655,000 in May 2020 to $851,000 in May 2021, a 30% year over year increase 8. This substantial increase in housing costs demonstrates the lack of affordability locally. Yield Curve According to research from the Federal Reserve Bank of San Francisco (FRBSF), one of the most strikingly accurate predictors of future economic activity is the yield curve, or the difference between the expected return on long-term versus short-term investments. The interest rates for long-term investments such as 10-year government bonds are normally higher than short-term investments such as 2-year U.S Treasury Notes. The interest rate difference is because longer-term bonds have a longer duration and risk more uncertainty surrounding the rate of return to the bondholder. This “interest rate risk” is greatest when interest rates are fluctuating. When the “spread” or difference between the 10-year treasury rate and the 2-year treasury rate approaches 0, the yield curve is “flat.” A negative spread is typically viewed as an indicator for recessionary periods. Recent 10-2 Year Treasury Yield Spreads have hovered around 1.2%. The following table shows the yield amount for the 2-year treasury and the 10-year Treasury note; as well as the difference or spread between the investments from September 2020 to September 2021.9 8 California Association of Realtors, Current Sales Price & Statistics. See: https://www.car.org/en/marketdata/data/countysalesactivity 9 U.S. Department of the Treasury, Daily Treasury Yield Curve Rates. See: https://www.treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=yield 2021/11/16 City Council Post Agenda Page 95 of 141 FY2023-2032 City of Chula Vista – General Fund Long-Term Financial Plan 14 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 1.8 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21Yield Rate (Percent)Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 2-Year 0.1 0.1 0.1 0.1 0.1 0.0 0.0 0.0 0.0 0.0 0.0 0.1 0.1 10-Year 0.7 0.8 0.9 0.9 1.1 1.3 1.6 1.6 1.6 1.5 1.3 1.3 1.4 Spread 0.6 0.7 0.8 0.9 1.0 1.2 1.6 1.6 1.6 1.5 1.3 1.2 1.3 Yield Curve for 2-Year and 10-Year Treasuries 2-Year 10-Year Spread 2021/11/16 City Council Post Agenda Page 96 of 141 FY2023-2032 City of Chula Vista – General Fund Long-Term Financial Plan 15 MAJOR REVENUES AND EXPENDITURES The following contexts and assumptions were used in the preparation of the ten-year projections of General Fund revenues and expenditures. REVENUES The City’s major revenue sources include: Property Tax, Sales Tax, Measure P Sales Tax, Measure A Sales Tax, Property Tax in lieu of VLF, Franchise Fees, Transient Occupancy Tax (TOT), and Utility Users’ Tax (UUT). The listed revenues account for approximately $171.6. million, or 79%, of the City’s General Fund revenues for FY 2022. These revenues are categorized as general revenues, or “discretionary revenues,” broadly defined as revenues that are generated not by any given government activity, but by general or specific taxing authority, such as a local sales tax measure (Measure P) or state law (Property Tax). Discretionary funds are generally not restricted as to use, and fund the majority of the City’s core, day-to-day and long-term operating expenses. The following are brief descriptions of the listed major General Fund revenue sources. Property Tax Property tax revenue is generated from a 1% ad valorem tax on “real property” (land, buildings, and other permanent structures/improvements), based upon the assessed value of the property within the City as certified by the County of San Diego Assessor. Property tax revenue is the City’s most stable revenue source and is generated from both residential and commercial property. For FY 2022, property tax revenue is anticipated to total $39.4 million, which accounts for 18% of the overall General Fund revenue budget. The LTFP includes a 3% increase in property tax revenues throughout the term of the LTFP based on expected moderate growth in property values. Although property tax growth is limited by Propositions 13 and 15 (tax rate of 1% of assessed property value with a 2% annual increase cap), an increase in property sales will grow property tax revenues as property values are re-assessed to market rate. The emergent recovery of the economy and labor market from the recessionary impacts of COVID-19 in 2020 and 2021 are anticipated to support continued growth, especially in residential property revenues. Slowly rising interest rates, increasing prices and affordability issues are anticipated to temper the growth for the remainder of the outlook. Property tax revenues declined throughout the most recent economic recession, with Chula Vista being one of the hardest hit areas in the region. As shown in the chart below, the City’s assessed valuation dropped significantly during the last recession. Since Fiscal Year 2014, the City’s assessed value has increased, and this positive trend is anticipated to continue into Fiscal Year 2022. This positive trend is reflected in the estimated property tax revenue. 2021/11/16 City Council Post Agenda Page 97 of 141 FY 2023-2032 City of Chula Vista - General Fund Long-Term Financial Plan 16 Historical Change in Assessed Value City of Chula Vista and Countywide Comparison The chart below shows the distribution of property tax dollars by the County amongst jurisdictions. Property Tax Dollar Distribution by Jurisdiction Fiscal Year 2022 Additionally, with the dissolution of the City of Chula Vista’s Redevelopment Agency (RDA) in FY 2012 via Assembly Bill 26, and the subsequent winddown of the Agency’s activities via the City’s Successor Agency, unallocated property tax increment (Redevelopment Property Tax Trust Fund) returns to the City in the form of additional property tax revenues. These redevelopment revenues are deemed “residual revenues” and amounted to $2.0 million in FY 2021. Residual funds are expected to slowly increase as the Successor Agency gradually pays off its obligations, providing a potential supplement to the City’s existing General Fund tax base for years to come. -6% -4% -2% 0% 2% 4% 6% 8% 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Chula Vista County Overall 2021/11/16 City Council Post Agenda Page 98 of 141 FY 2023-2032 City of Chula Vista - General Fund Long-Term Financial Plan 17 Bradley-Burns Uniform Local Sales and Use Tax (Sales Tax) Sales tax revenue is generated from a percentage tax imposed by the City on the sale of retail goods and services that occur within the City of Chula Vista. The total citywide sales tax rate is 8.75%, of which the City’s General Fund receives 1.0% of all the sales transactions within the City. The General Fund sales tax revenue is anticipated to be approximately $39.7 million in FY 2022, which represents the largest revenue source for the City. The LTFP includes a 2% increase in sales tax revenues throughout the term of the LTFP. In addition to this tax revenue, the citizens of Chula Vista approved the Measure P Sales Tax Measure in 2016 which established a temporary ten-year ½ percent sales tax rate upon sales within the City (which is included in the total 8.75% tax rate). Revenues are shown as gross revenues; administration costs to the California Department of Tax and Fee Administration are included in the Other Expenses line of the Plan. On October 1, 2018, a third component began to contribute to the City’s overall sales tax revenue. In June 2018, the Measure A Sales Tax was approved by the citizens of Chula Vista. The Measure A Sales Tax is a ½ percent sales tax on goods and services sold within the City to support the public safety needs of the city. This increased the overall sales tax rate to 8.75% as of October 1, 2018, and the ½ percent sales tax does not have a sunset date. City of Chula Vista Sales Tax Rate Breakdown Staff continues to monitor areas impacting sales tax revenues, such as the significant shift to online shopping during the COVID-19 shelter-in-place order, and passage of State Assembly Bill 147 for the collection and remittance of sales tax by out-of-state retailers related to the South Dakota v. Wayfair, Inc. Supreme Court decision in 2018. State General Fund (includes K-12/Community Colleges)3.94% Public Safety (Prop 172)0.50% County Realignment (Mental Health/Welfare/Public Safety)1.56% Countywide Transportation Fund 0.25% San Diego County Regional Transportation Commission (TransNet)0.50% State and County Subtotal 6.75% Local Jurisdiction (City or County of place sale/use) (City Share)1.00% City Transaction Tax (Measure P)0.50% City Transaction Tax (Measure A)0.50% City Subtotal 2.00% Total Sales Tax Rate – Chula Vista 1 8.75% 1 Total sales tax rates will vary by City due to local sales tax initiatives. 2021/11/16 City Council Post Agenda Page 99 of 141 FY 2023-2032 City of Chula Vista - General Fund Long-Term Financial Plan 18 Measure P Sales Tax The Measure P sales tax revenue is to support repairing and replacing City infrastructure. While the revenue generated from the Measure P Sales tax is collected in the General Fund, the General Fund transfers this revenue to the Measure P Fund for accountability and transparency in the usage of these funds. These actions result in an overall net zero impact to the General Fund. Measure P sales tax revenue are anticipated to be approximately $23.0 million in FY 2022. Revenues are shown as gross revenues; administration costs to the California Department of Tax and Fee Administration are included in the Other Expenses line of the Plan. The LTFP includes a 2% increase in Measure P Sales Tax revenues throughout the term of the LTFP. Measure A Sales Tax The Measure A sales tax revenue is to support the public safety staffing needs of the City. While revenue is collected and tracked within the General Fund, the General Fund transfers this revenue to the Measure A Fund for accountability and transparency in the usage of these funds. Separate accounts (one for the Fire department and one for the Police department) were established to support the monitoring and allocation of these funds. These actions result in an overall net zero impact to the General Fund. Measure A sales tax revenue are anticipated to be approximately $23.0 million in FY 2022. Revenues are shown as gross revenues; administration costs to the California Department of Tax and Fee Administration are included in the Other Expenses line of the Plan. The LTFP includes a 2% increase in Measure A Sales Tax revenues throughout the term of the LTFP. Inflation may impact this revenue source as rising prices would generate additional revenue; however, increased prices may also decrease sales. Staff engages an outside consultant to assist in the monitoring and projections for all sales tax related revenues. Property Tax in lieu of Vehicle License Fee (VLF) VLF revenues are generated from vehicle license fees paid with vehicle registrations to the State of California Department of Motor Vehicles; fees are then allocated back to cities and counties. With the State Budget Act of 2004, the allocation of VLF revenues to cities and counties were substantially changed, permanently reducing the VLF tax and increasing transfers of property tax funds from the State in lieu of VLF. Since 2006, the majority of VLF revenues for each city grew essentially in proportion to the growth in the change in gross property assessed valuation. Due to the new formula by the State, ninety-six (96) percent of the City’s VLF revenues fluctuated with changes in assessed property values within the City. As such, this revenue category reflects a 3% increase throughout the term of the plan, similar to the property tax revenue category. The City’s VLF revenue is projected to be $24.8 million for FY 2022. Franchise Fees Franchise fees are revenue generated from agreements with private utility companies in exchange for use of the City’s rights-of-way. Franchise fees are collected from three primary sources: San Diego Gas & Electric (2% on gas and 1.25% on electricity), trash collection franchises (20% fee), and cable franchises (5% fee). As each source is impacted by various factors, an individual growth 2021/11/16 City Council Post Agenda Page 100 of 141 FY 2023-2032 City of Chula Vista - General Fund Long-Term Financial Plan 19 factor is applied to each source. Overall, while the gas and electric and trash sources have remained relatively stable, the cable fees have fluctuated in recent years due to changes in the cable industry. For FY 2022, total franchise fee revenue is projected to be $12.9 million. The LTFP anticipates these revenues, in the aggregate, to grow slightly rate over the term of the plan, at a rate of 2%. Transient Occupancy Tax (TOT) TOT is a tax imposed on occupants of hotel and motel rooms and short-term rentals within the City. The current TOT tax rate in the City is 10%. TOT revenues are projected to generate $4.9 million in FY 2022. In 2020 and well into 2021, the travel sector was impacted by the public health measures related to the COVID-19 pandemic, including limitations on travel and group events. In the Plan, we assume that the vaccination program and public health measures will allow for a recovery of TOT revenues to FY 2020 levels (pre COVID-19) in FY 2023. Major economic drivers for TOT revenue include room rates, average occupancy rates, and seasonal and non-seasonal tourism. It is anticipated that TOT revenues will increase as a result of new hotels being developed within the City over the next several years. However, until these hotels have had some time to market themselves and establish a strong customer base, growth in the TOT revenues is anticipated to be tempered by the increased competition within the current market base. The LTFP projects an annual 2% growth rate for TOT revenues, which is anticipated to be a conservative estimate and will be updated as new hotels become established. Utility User Tax (UUT) The City adopted its Utility Users Tax (UUT) in 1970. The City of Chula Vista imposes a UUT on the use of telecommunications (cable, telephone) at the rate of 4.75% of gross receipts. The UUT on natural gas services is $0.00919 per therm and $0.00250 per kilowatt on electricity services, which equates to approximately a 1% tax. City staff recently conducted an analysis to project revenues for each utility type; technology, consumer behavior and legislative changes have positioned this revenue category as less secure over the long-term. For FY 2022, revenues are projected for a total of $3.8 million. The LTFP assumes a one-half percent annual increase throughout the term of the plan. Other Local Taxes In response to the Adult Use of Marijuana Act, adopted by voters of the State of California in 2016, and the Medicinal and Adult-Use Cannabis Regulation and Safety Act, enacted by the California Legislature in 2017, the City adopted Ordinance No. 3418 (Chula Vista Municipal Code chapter 5.19) in March 2018 to permit, regulate and license commercial cannabis activity in the City. The City submitted a measure for voter consideration on the November 2018 ballot to enact a set of taxes upon commercial cannabis businesses within the City to generate revenue to address the ongoing costs to permit, license, and fully regulate commercial cannabis businesses that will be operating within the City. Cannabis revenues are a general tax and the tax proceeds can be spent for any lawful general government purposes. 2021/11/16 City Council Post Agenda Page 101 of 141 FY 2023-2032 City of Chula Vista - General Fund Long-Term Financial Plan 20 Cannabis revenues as part of the Other Local Taxes are to be $2.8 million in FY 2022 based on the current trajectory of cannabis business openings, with projected growth over the first five years of the implementation of Measure Q (approved by voters on November 6, 2018) that authorized the collection of Cannabis revenues from businesses operating in the City of Chula Vista. EXPENDITURES The City’s major expenditure categories include: Personnel costs, Retirement Benefits, and Health Insurance. The listed expense categories account for approximately $121.5 million or 55.8% of the City’s General Fund expenditures for FY 2022. The following are brief descriptions of the listed expenditure categories. Personnel Since the last economic recession, the City has focused on recovering its staffing levels to support City services. Since 2015, the City has increased staffing by approximately 6% by restoring 44.0 Full-time Equivalent (FTE) positions to various departments. For FY 2022, the total General Fund staffing is 850.25 FTEs. For FY 2022, personnel costs, not including retirement benefits or health insurance, are projected to be approximately $95.5 million. The projected salary expenses are net anticipated salary savings from the City departments. Salary savings is the amount of salary expense that a department saves when a position is held vacant for a period of time or filled at a lower salary level than the originally budgeted level. The LTFP includes the annualized costs of negotiated salary increase approved per the current Memoranda of Understanding (MOU) with each of the City’s employee groups. The MOUs vary in negotiated salary increases and duration. Beyond the expiration of the current MOUs, the LTFP assumes wage inflation of 2% per year. It is important to note that this figure is simply an assumption for financial projections and does not represent a commitment or obligation, but rather provides a baseline for wage related inflation in the future. Retirement Benefits The increase in retirement/pension costs driven by rising California Public Employees’ Retirement System (CalPERS) contributions is a significant budgetary challenge facing most cities. In fact, pension costs are the largest financial challenges facing cities throughout the state and are primarily due to factors outside of the cities’ control, namely actuarial assumptions changes made by CalPERS and below average investment returns. The City of Chula Vista through the issuance of Pension Obligation Bonds (POBs) has refinanced this debt obligation to something more predictable with anticipated budgetary savings and additional reserves available to fund unanticipated increase in pension cost. (See page 24 for additional information). The City contracts with CalPERS retirement benefits for all full-time benefitted employees. The City has two employee retirement plans (Miscellaneous and Safety), each with three tiers of employees based upon their start date within the CalPERS system and the City of Chula Vista. The Miscellaneous plan covers all qualified City employees except those which are considered public safety employees 2021/11/16 City Council Post Agenda Page 102 of 141 FY 2023-2032 City of Chula Vista - General Fund Long-Term Financial Plan 21 (Fire and Police departments). The Public Safety plan covers all qualified public safety employees. For each of the benefit rates referenced below, CalPERS uses the percentage of service credit earned in one year (3%, 2%, etc.) and the full retirement age (60, 50, etc.) to describe their tiers. • Tier 1 employees include employees who became members of CalPERS and started with the City of Chula Vista prior to 4/22/2011. o Miscellaneous tier 1 employees receive benefits at the rate of 3% at 60. o Public Safety tier 1 employees receive benefits at the rate of 3% at 50. • Tier 2 employees include employees that became members of CalPERS or a reciprocal agency prior to 1/1/2013 but started with the City after 4/22/2011. o Miscellaneous tier 2 employees receive benefits at the rate of 2% at 60. o Public Safety tier 2 employees receive benefits at the rate of 3% at 55. • Tier 3, or Public Employees’ Pension Reform Act (PEPRA), employees include all employees that are new members to CalPERS on or after 1/1/2013. o Miscellaneous tier 3 employees receive benefits at the rate of 2% at 62. o Public Safety tier 3 employees receive benefits at the rate of 2.7% at 57. CalPERS provides separate annual valuation reports for the two retirement employment plans, Miscellaneous and Public Safety. These reports provide the City with two very important figures. The first is the City’s unfunded accrued liability (UAL), which is the amount the City would have to pay to CalPERS today to completely pay off all pension liability already promised to employees. The UAL represents the unfunded (outstanding) liability the plan has incurred. As of June 30, 2020, the most recent CalPERS valuation report available, the City’s unfunded liability was $197.0 million for the Miscellaneous plan and $169.2 million for the Public Safety plan for an overall total of $366.2 million. Due to the termination of the UAL liability paid by the City’s issuance of pension obligation bonds, there will be no UAL payments to be made going forward, unless UAL costs are incurred in subsequent fiscal years. The purpose of the Section 115 Trust is to pay future UAL costs and other retirement liabilities or potentially pay off (redeem) the POBs prior to maturity. The second important figure is the City’s required employer contribution for the Normal Cost or the annual cost of service accrual for the upcoming fiscal year for active employees. This is amount of money the City will need to contribute for the current fiscal year towards pension costs. For FY 2022, the required estimated employer Normal Cost contribution for the Miscellaneous plan is $5.9 million and the Public Safety plan is $9.3 million, for a total cost of $15.2 million, respectively. The UAL and Normal Cost payment amounts are used to calculate the City’s fiscal year pension contribution amounts. The City’s total General Fund pension contribution amount for FY 2019 was $27.5 million (including UAL and Normal Cost), and the budgeted pension contribution in FY 2022 is $12.7 million (Normal Cost) a decrease of 46%. This dramatic decrease in direct retirement costs is directly due to the extinguishment of the UAL based on the issuance of pension obligation bonds in February 2021. See the Pension Obligation Bonds section below for further information. 2021/11/16 City Council Post Agenda Page 103 of 141 FY 2023-2032 City of Chula Vista - General Fund Long-Term Financial Plan 22 Before POBs: Retirement Costs = Normal Cost + Unfunded Accrued Liability (UAL) After POBs: Retirement Costs = Normal Cost + POBs debt service payments * Subsequent UALs to be funded by Pension Reserve Fund The following table shows the City’s General Fund total retirement contributions since FY 2019. Total General Fund Retirement Contributions CalPERS valuation reports also provide the City with a five-year projection of future employer contribution amounts that the City utilizes in making long term projections. Based on the projections within the valuation reports, the City’s General Fund retirement contributions toward its normal costs are projected to slowly increase slightly from approximately $13.5 million in FY 2022 to $13.9 million in FY 2028, shown in the table below. CalPERS Projected Employer Contributions 2021/11/16 City Council Post Agenda Page 104 of 141 FY 2023-2032 City of Chula Vista - General Fund Long-Term Financial Plan 23 Source: CalPERS amounts from the June 30, 2020 Valuation Report CalPERS Funding Risk Mitigation Policy On July 12, 2021, the CalPERS Board of Directors decided to lower the rate of return (discount rate) assumption from 7.0% to 6.8% based on the preliminary 21.3% rate of return for Fiscal Year 2021. For comparison, rate or returns were 4.7% in FY 2020, 6.7% in FY 2019 and 8.6% in FY 2018. The high performance of investments in FY 2021 triggers CalPERS’s Funding Risk Mitigation Policy enacted in 2015, which helps to share the benefits of the extraordinary investment gains between future contribution rates and a reduced discount rate. The Policy assumes that existing assets will grow at a slightly slower rate annually, into the future. A reduction in the discount rate is a conservative approach to ensuring CalPERS reaches its target over the longer term. Since a lowered discount rate reduces the plan’s funded status (total value of assets to pay off future liabilities), required contributions will most likely be increased for some CalPERS members (PEPRA members) and bargaining groups. As a result of CalPERS recent investment performance and policy changes, a new unfunded pension liability (UAL) as well as increasing normal pension costs may result. The LTFP will be updated to include the anticipated impacts of this change as CalPERS valuation reports are released. Part-Time Employees Retirement Benefits Part-time employees receive retirement benefits through Public Agency Retirement System (PARS). PARS is an alternative to Social Security for Part-Time, Seasonal, and Temporary employees. The City and employees both currently contribute 3.75% of salary towards the PARS contribution amount of 7.5%. $13.5 $13.7 $13.7 $13.7 $13.7 $13.8 $13.9 $13.3 $13.4 $13.5 $13.6 $13.7 $13.8 $13.9 $14.0 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028Millions General Fund Normal Cost 2021/11/16 City Council Post Agenda Page 105 of 141 FY 2023-2032 City of Chula Vista - General Fund Long-Term Financial Plan 24 PENSION OBLIGATION BONDS City Staff, in conjunction with discussions with City Council, explored over several years the use of pension obligation bonds (POBs) to manage retirement costs. A pension obligation bond is a taxable bond issued to investors, with proceeds utilized to extinguish all or a part of the City’s pension liabilities. These liabilities are termed the “unfunded accrued liability” (UAL) and are due to the California Public Employees’ Retirement System (CalPERS). The UAL is the shortfall between what the City has in assets and what it will need in assets to fully pay out the benefits that it has promised to retirees under CalPERS (approximately $350 million). CalPERS charges the City a 7% interest rate on the City’s pension debt and enforces a mandatory repayment schedule. On September 15, 2020, City Council approved the initial legal documents related to a POB and the City and its financing team initiated a validation process in the San Diego County Superior Court. This process concluded on January 11, 2021, with the City refinancing the City’s UAL with CalPERS at historically low interest rates. In February 2021, the City issued approximately $350 million in Pension Obligation Bonds at an overall interest rate of 2.54% to refund all or a portion of the UAL based on the CalPERS Actuarial Valuation as of June 30, 2019, impacting fiscal year 2022. Issuance of the POBs provides the City several benefits, including: (1) generating cash flow savings to the City through historically low interest rates relative to the CalPERS discount rate assumption; (2) creating a repayment shape for the City’s pension liabilities that increases more gradually than currently mandated by CalPERS; (3) enhancing budget predictability and long-term fiscal sustainability by creating a smoother repayment shape at a lower level; (4) leveraging the projected savings to adequately fund various reserves; and, (5) setting aside a portion of the future savings into a new Section 115 Trust and Bond Call Fund to mitigate future pension and OPEB cost increases and potentially pay off (redeem) the POBs prior to maturity. The projected long-term benefit to the City (All Funds) from the 2021 Pension Obligation Bonds issuance is $116 million ($112 million on a present value basis). These savings estimates assume that CalPERS earn a 7% return in the future. Savings will be higher if CalPERS earns more than 7% return and lower if it earns less than 7%. This savings will be utilized to fund the new reserve funds mentioned, mitigating future fiscal impacts from anticipated CalPERS pension investment return shortfalls. The chart below shows the restructuring strategy with the green line representing the new debt payments for the POBs, and the blue bars representing the previous repayment schedule (UAL) based on a 7% return by CalPERS. 2021/11/16 City Council Post Agenda Page 106 of 141 FY 2023-2032 City of Chula Vista - General Fund Long-Term Financial Plan 25 UAL Debt Payments vs. POB Payments Fiscal Years 2022 – 2045 Health Insurance The City currently offers qualified benefitted employees four medical plan options: Aetna Sharp Accountable Care Organization (ACO), Aetna Full Network HMO, and the Aetna PPO and Kaiser Health Maintenance Organization (HMO). For FY 2022, health insurance expenses are projected to total approximately $13.3 million, or 6.1% of the FY 2022 expenditures. This represents an increase of $1.2 million or 9.4% from the fiscal year 2021 Adopted Budget. Kaiser and Aetna insurance premiums have increased an average of 4.2% and 1.5% per year, respectively, since the beginning of Calendar Year 2017. We are working with our health insurance broker on the impact of future changes to the plan. The LTFP includes a 10% increase in health insurance expenses that is blended between safety and non-safety employees that equates to a 7% assumption throughout the term of the LTFP. CAPITAL EXPENDITURES To identify the City’s infrastructure and capital needs, the City developed an asset management plan. The asset management plan inventoried all City infrastructure and property assets, conducted condition assessments on each asset, prioritized the assets by risk level and importance, and performed a life cycle cost assessment. This information allowed the City to develop a cost estimate for the capital improvement program. The asset management plan sorted the City assets into three categories: red (high risk), yellow (medium risk), and green (low risk). This allows for the City to make necessary decisions on each asset (repair, replace, renovate, liquidate, shut down, relocate, etc.), and to budget available resources towards the repair and replacement of these assets. In light of the projected costs to repair and replace the City’s capital assets, the City Council placed 2021/11/16 City Council Post Agenda Page 107 of 141 FY 2023-2032 City of Chula Vista - General Fund Long-Term Financial Plan 26 a temporary ten-year ½ percent sales tax measure (Measure P) on the November 2016 ballot to address the high priority capital needs. In November 2016, Chula Vista voters approved Measure P. The sales tax was projected to generate $178 million in additional revenue over the ten-year period. To guide the expenditure of these revenues, the City developed the Intended Infrastructure, Facilities and Equipment Expenditure Plan (IFEEP) based on information from the City’s asset management plan. As the Measure P Sales Tax has a limited term, the IFEEP focuses on critical one-time items to address deferred maintenance and improve the safety of the City’s infrastructure. As the IFEEP focuses on one-time allocations, any additional operating costs for new or improved facilities, such as fire stations, will need to have an alternative funding source. Examples of ongoing operational costs include additional staff or increased utility costs. The LTFP includes the Measure P revenues as General Fund revenues. These revenues are paired with a corresponding transfer out of the General Fund to the Measure P fund. The transfer of the funds provides for accurate monitoring of the allocation and expenditure of these funds to ensure compliance with the original intent of the sales tax measure. The corresponding transfer results in a net zero impact to the General Fund. The LTFP includes minimal capital expenditures beyond those anticipated to be funded through Measure P funding. Information on Measure P allocations and projects can be found on the City’s website: https://www.chulavistaca.gov/departments/engineering. General Fund alternative funding sources, such as grants and transportation funds, support the City’s capital program. However, as the LTFP only addresses the General Fund, these resources and expenditures are not included in this report. Additional information related to the City’s capital program and funding sources can be found on the City’ website: https://www.chulavistaca.gov/departments/public-works/projects. OUTSTANDING CITY DEBT The City has three outstanding Certificates of Participation (COP) that are funded with General Fund contributions, Public Facilities Development Improvement Funds (PFDIF), and/or the Residential Construction Tax Funds (RCT). The outstanding COPs consist of: the 2014 Refunding COP, the 2015 Refunding COP, and the 2016 Refunding COP. These COPs have refunded the outstanding principal of various earlier COPs which were used to fund the construction of the City’s Police Facility, Civic Center improvements, Western Chula Vista Infrastructure projects, and Nature Center Improvements. In addition to the outstanding COPs, the City has three outstanding lease revenue bond issuances. These include: the Chula Vista Municipal Financing Authority (CVMFA) 2017 Lease Revenue Bonds (2017 Bonds); and the CVMFA Lease Revenue Bonds (New Clean Renewable Energy Bonds) Series 2017A and Series 2017B (2017A and 2017B Bonds). The 2017 Bonds (Measure P) were issued to finance infrastructure, facilities, and equipment; and the 2017A and 2017B Bonds were issued to finance photovoltaic (solar) energy systems at various City facilities. Funding from the Measure P 2021/11/16 City Council Post Agenda Page 108 of 141 FY 2023-2032 City of Chula Vista - General Fund Long-Term Financial Plan 27 Sales Tax will address the annual debt service for the 2017 Bonds. It is anticipated that savings in City utility costs will exceed the annual debt service for the 2017A and 2017B bonds, resulting in a positive impact to the General Fund. The City recently issued approximately $350 million in Pension Obligation Bonds (POBs) to refund all or a portion of the UAL based on the CalPERS Actuarial Valuation as of June 30, 2019 that is for Fiscal Year 2022. More discussion on POBs is provided in the Expenditures section of this document. The following table illustrates the City’s General Fund debt obligations. While the City has several outstanding bond issuances, the General Fund’s portion of the annual debt service payments is approximately $15.4 million for FY 2022. This represents approximately 9.2% of the General Fund revenues for FY 2022. Minimizing the annual General Fund debt service payments supports maintaining flexibility within the General Fund as a low percentage of the General Fund revenue is dedicated to long-term ongoing obligations. Additional information related to the City’s outstanding debt can be found on the City’s website: https://www.chulavistaca.gov/departments/finance/financial-reports. 2021/11/16 City Council Post Agenda Page 109 of 141 FY 2023-2032 City of Chula Vista - General Fund Long-Term Financial Plan 28 FACTORS NOT INCLUDED IN THE PLAN American Rescue Plan Act of 2021 Staff brought forward a spending plan for ARPA funding for public and City Council consideration on August 24, 2021 which was subsequently unanimously adopted. Staff will incorporate impacts to the General Fund LTFP in future budget monitoring periods. Development Impacts As new major developments are proposed in the City, each developer is required to submit a fiscal impact analysis to ensure that the City’s revenues generated from the project will meet or exceed the anticipated expenditures. However, the actual timing of the impact from new development in revenues and expenditures is difficult to predict. As the development projects vary, such as new hotels or new housing, various factors influence the impact of the projects. The timing of the revenues related to new development can vary greatly depending on how fast the market can absorb the new inventory and the economic condition throughout the development process. Staff is currently working on developing an updated fiscal impact model to provide projections based on the best information available. Economic Downturn(s) As previously discussed, the potential for an economic downturn is plausible. However, the LTFP does not attempt to incorporate the impact of a downturn as the timing and duration of a downturn is difficult to project. While the growth projections incorporated into the LTFP are conservative, the growth factors will be re-evaluated as needed based upon future economic indicators and as data becomes available. 2021/11/16 City Council Post Agenda Page 110 of 141 FY 2023-2032 City of Chula Vista - General Fund Long-Term Financial Plan 29 10 YEAR PROJECTIONS The following table projects revenue and expenditure categories for the City’s General Fund for Fiscal Years 2023 – 2032. Adopted FY FY FY FY FY FY FY FY FY FY FY 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Revenues: Property Taxes 39.4 40.6 41.8 43.1 44.4 45.7 47.1 48.5 50.0 51.5 53.0 Sales Tax 39.7 42.1 43.0 43.8 44.7 45.6 46.5 47.4 48.4 49.4 50.4 Measure P Sales Tax 23.0 26.0 26.6 27.1 27.6 21.1 - - - - - Measure A Sales Tax 23.0 26.1 26.6 27.2 27.7 28.3 28.8 29.4 30.0 30.6 31.2 Franchise Fees 12.9 13.2 13.4 13.7 14.0 14.2 14.5 14.8 15.1 15.4 15.7 Utility User Taxes 3.8 3.8 3.8 3.9 3.9 3.9 3.9 3.9 4.0 4.0 4.0 Transient Occupancy Taxes 4.9 5.0 5.3 5.4 5.6 5.7 5.8 5.9 6.0 6.1 6.3 Property Tax in lieu of VLF 24.8 25.5 26.3 27.1 27.9 28.7 29.6 30.5 31.4 32.3 33.3 Major Discretionary Revenues 171.6 182.4 186.9 191.2 195.7 193.2 176.2 180.5 184.8 189.3 193.8 Development Revenue 1.8 1.8 1.8 1.8 1.8 1.8 1.8 1.8 1.9 1.9 1.9 Licenses and Permits 1.6 1.6 1.6 1.7 1.7 1.7 1.8 1.8 1.9 1.9 1.9 Fines, Forfeitures & Penalties 1.0 1.0 1.0 1.1 1.1 1.1 1.1 1.1 1.2 1.2 1.2 Use of Money and Property 3.3 3.3 3.4 3.4 3.4 3.5 3.5 3.6 3.6 3.6 3.7 Other Local Taxes 5.5 7.1 8.3 8.4 8.5 8.6 8.7 8.8 8.8 8.9 9.0 Police Grants 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 Other Agency Revenue 0.8 0.8 0.8 0.8 0.8 0.8 0.9 0.9 0.9 0.9 0.9 Charges for Services 7.5 7.9 7.9 8.0 8.0 8.1 8.1 8.1 8.2 8.2 8.3 Interfund Reimbursements 9.4 9.1 9.2 9.3 9.4 9.5 9.6 9.7 9.7 9.8 9.9 Other Revenue 1.0 1.4 1.4 1.4 1.4 1.4 1.4 1.4 1.4 1.4 1.4 Transfers From Other Funds 13.5 13.9 14.3 14.8 15.2 15.6 16.1 16.6 17.1 17.6 18.1 Other Revenues 1 46.4 48.9 50.8 51.6 52.3 53.1 53.9 54.8 55.6 56.5 57.4 New Development Revenues 2 - 0.6 1.3 2.0 2.7 3.5 3.8 4.0 4.1 4.2 4.4 Total General Fund Revenues 218.1 232.0 239.0 244.8 250.7 249.9 234.0 239.2 244.5 250.0 255.5 Year-over-Year Change 6.4%3.0%2.4%2.4%-0.3%-6.4%2.2%2.2%2.2%2.2% Expenditures: Personnel Services 97.3 101.0 105.6 107.7 109.8 112.0 114.3 116.5 118.9 121.2 123.7 Retirement - PERS 12.7 13.7 13.7 13.7 13.7 13.8 13.9 14.3 14.7 15.1 15.5 Health Insurance 13.3 14.3 15.3 16.3 17.5 18.7 20.0 21.4 22.9 24.5 26.2 Salary Savings (Ongoing)(1.8) (2.0) (2.1) (2.2) (2.2) (2.2) (2.3) (2.3) (2.4) (2.4) (2.5) Personnel Services Expenditures 121.5 126.9 132.4 135.6 138.8 142.2 145.9 149.9 154.1 158.4 162.9 Supplies and Services 15.4 15.1 15.7 16.0 16.6 17.1 17.5 17.8 18.2 18.5 18.9 Utilities 4.9 5.1 5.4 5.7 6.0 6.3 6.6 6.9 7.2 7.6 8.0 Other Expenses 1.6 2.6 3.2 3.8 4.5 5.1 5.8 6.6 7.3 8.1 8.9 Equipment (Capital not CIP)0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 Internal Services 3.2 3.3 3.3 3.4 3.4 3.5 3.6 3.7 3.7 3.8 3.9 Measure A Obligations 23.0 26.1 26.6 27.2 27.7 28.3 28.8 29.4 30.0 30.6 31.2 Measure P Obligations 23.0 26.0 26.6 27.1 27.6 21.1 - - - - - Transfers/Debt Service 7.6 5.9 6.0 6.0 5.9 5.9 5.6 5.6 5.7 5.7 5.7 Transfers/Debt Service (POBs) 11.7 11.8 11.9 12.1 12.2 12.3 12.5 12.6 12.7 12.9 13.3 Transfers/Section 115 Trust (PRF)5.9 7.1 7.8 8.6 8.5 9.0 9.4 9.8 10.2 10.3 - Other Expenditures 3 96.5 103.3 106.7 109.9 112.6 108.8 89.9 92.5 95.2 97.7 90.1 Bayfront Fire Station - - 0.2 0.9 1.4 1.4 1.4 1.5 1.5 1.6 1.6 Otay Ranch Village 8 - 0.6 1.2 1.8 2.5 3.2 3.7 4.0 4.1 4.2 4.3 New Development Expenditures 2 - 0.6 1.4 2.8 3.9 4.6 5.2 5.5 5.7 5.8 5.9 Total General Fund Expenditures 218.1 230.8 240.5 248.2 255.4 255.7 240.9 247.9 255.0 261.9 258.9 Year-over-Year Change 5.8%4.2%3.2%2.9%0.1%-5.8%2.9%2.8%2.7%-1.1% General Fund Surplus / (Deficit)-$ 1.2 (1.5) (3.4) (4.7) (5.8) (6.9) (8.7) (10.5) (12.0) (3.4) Surplus / (Deficit) as a % of Budget 0.0%0.5%-0.6%-1.4%-1.8%-2.3%-2.9%-3.5%-4.1%-4.6%-1.3% General Fund Long-Term Financial Plan - FY 2023 - 2032 (in millions) Forecasted 2021/11/16 City Council Post Agenda Page 111 of 141 FY 2023-2032 City of Chula Vista - General Fund Long-Term Financial Plan 30 Notes: (1) Other Revenues is the total of the following budget revenue categories: Development Revenue, Licenses and Permits, Fines, Forfeitures & Penalties, Use of Money and Property, Other Local Taxes, Police Grants, Other Agency Revenue, Charges for Services, Interfund Reimbursements, Other Revenues - Miscellaneous, and Transfers from Other Funds. (2) New Development Revenues & New Development Expenditures are for revenues and expenditures projected for the new Bayfront Fire Station and Otay Ranch Village 8 Development anticipated to come online during LTFP term. (3) Other Expenditures is the total of the following expenditure categories: Supplies and Services, Utilities, Other Expenses, Equipment, Internal Services, and Transfers/Debt Service. The following key assumptions were incorporated into the LTFP financial projections. Baseline • The LTFP utilizes the Fiscal Year 2021-2022 adopted budget as the basis for future year forecasted revenues and expenditures. • Future year forecasted figures are adjusted with updated growth rates and other inputs based on economic conditions, local development activity, one-time revenues and expenditures, changes in service levels and other factors. Staffing • The LTFP maintains current staffing and program levels throughout the term of the plan. No new staffing was included in the projections except for necessary staffing for two new facilities (Bayfront and Village 8 fire stations) becoming operational within the Plan period. The projected expenditures for the additional staff for the new fire stations is included in the New Development Expenditures category as these positions will be necessary to operate the new facilities accommodating City growth. • Future discussions with the oversight committee for the Measure A Sales Tax and the outcome of outstanding issues related to the Port of San Diego may lead to re-evaluating these expenditures as future General Fund obligations. New Revenues • No projections or assumptions are included related to future ballot measures. Healthcare Costs • The City is currently exploring options with its health care broker on additional healthcards options. Potential new options could reduce healthcare costs that will benefit both employee and the City overall and will be reflected in future version of the LTFP. Debt Issuances for Capital Projects • The LTFP does not include any future debt issuances for capital projects. Retirement • Projected normal costs for the annual cost of service accrual are included. The LTFP no longer 2021/11/16 City Council Post Agenda Page 112 of 141 FY 2023-2032 City of Chula Vista - General Fund Long-Term Financial Plan 31 includes the projected Unfunded Actuarial Liability (UAL) expense for the period of the LTFP due to the UAL debt extinguishment from the proceeds of $350 million in pension obligation bonds, as discussed above. The purpose of the Section 115 Trust is to pay future UAL costs that may arise in subsequent fiscal years. Pension Obligation Bonds • Debt service for the 2021 pension obligations bonds during the LTFP period is included in the Transfers/Debt Service expenditure category. • Contributions to the IRS Section 115 Trust according to the City policy goals for the pension reserve policy are included. New Development • The City generally expects to collect additional revenues and expend additional resources as the City grows and develops new residences and businesses. The General Fund benefits from the additional revenues and also funds a portion of the costs associated with new development based on available resources, policy goals, development agreements and other factors. Staff included several key new development factors in the LTFP based on project status, contractual obligations/terms and General Fund impact. • Otay Ranch Village 8 West SPA (Sectional Planning Area) is currently being developed by HomeFed and will include over 2,300 new residential units at completion. As part of the development agreement, a new fire station and expanded City services are to be operational within the next two fiscal years. Costs for operating the area’s neighborhood parks will be borne by the developer. The LTFP includes projected City revenues as well as expenditures for Otay Ranch Village 8 West starting in Fiscal Year 2023 and through the term of the LTFP as projected by a fiscal impact analysis from the City’s Finance and Development Services Departments. These figures are estimates; staff will update the LTFP when additional information is made available. • Bayfront Convention Center Project: The estimated costs for operating a new fire station to service this project area is included in the LTFP based on development and financing agreements. Figure 2 Gaylord Bayfront Convention Center Figure 1 Otay Ranch Village 8 West 2021/11/16 City Council Post Agenda Page 113 of 141 FY 2023-2032 City of Chula Vista - General Fund Long-Term Financial Plan 32 Summary The LTFP projects future structural deficits starting in Fiscal Year 2024 that starts off moderately and increases substantially until FY2031 then decrease in FY2032. Absent further action by the City to bridge the funding gaps. Based on baseline projections, growth in expenditures is anticipated to outpace the growth in revenues for each year of the LTFP period. This long-term structural shortfall generates incremental deficits each year of the LTFP. The overall General Fund deficits are projected to increase from approximately $1.5 million in FY 2024 to $12.0 million in FY 2031. In FY 2032, the anticipated annual deficit will decrease to $3.4 million due to the end of the Section 115 Trust contribution that is scheduled for 10-years under the expenditures category (FY 2022 to FY 2031). GENERAL FUND RESERVES City Council Policy No. 220-03 establishes a General Fund Operating Reserve Fund for the City. The General Fund Operating Reserve (Operating Reserve) represents unrestricted resources or unassigned balance available for appropriations by the City Council to address extraordinary needs. The policy sets the long-term goal of building a General Fund Operating Reserve of no less than 15% of the City’s operating expenditures. Per the policy, the Operating Reserve is to be used to provide temporary financing for unanticipated extraordinary needs of an emergency nature, such as major storm drain repairs, litigation, or settlement costs or an unexpected liability created by Federal or State legislative action. Authorized use of this Operating Reserve requires approval by four/fifths vote of the City Council. In addition to the Operating Reserve, Policy No. 220-03 established the Economic Contingency Reserve (Contingency Reserve) and the Catastrophic Event Reserve (Catastrophic Reserve). The funding goal for these reserves is 5% and 3% of the annual operating budget, respectively. The Contingency Reserve is funding set aside to mitigate a significant downturn in the economy; while the Catastrophic Reserve is to be used to address unexpected expenses related to a major natural disaster in the City. Usage of either of these funds requires authorization by four/fifths of the City Council. It is anticipated that the funding of these reserves would be a long-term goal and would be funded from unanticipated revenues or expenditure savings. The City Council specifically amended this policy on November 3, 2020 with the adoption of Pension & OPEB Reserve Fund Policy No. 220-09, which provides, in relevant part, that: i. Allocations for the Section 115 Trust, referred to as the Pension Reserve Fund (“PRF”), will only occur after the full funding of the 15% General Fund Operating Reserves; and ii. Upon meeting the 15% General Fund Operating Reserves, 75% of all future surplus funds will be transferred to the PRF, and the remaining 25% will be allocated to the Economic Contingency Reserves and Catastrophic Event Reserves in accordance with this Policy; and iii. In the event all three General fund reserve accounts are fully funded at the stated policy percentage, 100% of surplus funds will be transferred to the PRF until it reaches 15% of General Fund Expenses (excluding Measure A & P, identical dollar amount to the General 2021/11/16 City Council Post Agenda Page 114 of 141 FY 2023-2032 City of Chula Vista - General Fund Long-Term Financial Plan 33 Fund Operating Reserves). The annual budget does not include a line item to build reserves; all anticipated revenues have been budgeted in order to balance the budget. Higher reserve levels will help mitigate the negative impact on revenues from economic fluctuations, support debt service coverage ratios, and provide a resource to fund unforeseen expenditure requirements. The following chart depicts the General Fund operating reserves since fiscal year 2013 as a percentage of the respective adopted budgets. As the reserve is intended to be a gauge of the General Fund, Measure P, and Measure A funding are not included in the calculation of the General Fund reserve. General Fund Operating Reserve Fiscal Year 2013 to Fiscal Year 2022 Note: This chart reflects only the General Fund Operating Reserve. It does not include the Economic Contingency Reserve, which has an estimated balance of approximately $8.4 million, or the Catastrophic Event Reserve, which has an estimated balance of approximately $2.7 million. Combined with the operating reserve, these two reserve funds total approximately 18.3% of the Fiscal Year 2022 Adopted General Fund budget. The Fiscal Year 2021 and 2022 figures presented are budgeted based on the City’s reserve policy targets. The actual, audited General Fund fund balance will be reported in the City’s Annual Comprehensive Financial Reports for their respective fiscal years. 8.5% 10.6% 11.7% 12.8%13.2% 15.4%15.1% 16.0%15.6% 14.8% 0 5 10 15 20 25 30 0 0.02 0.04 0.06 0.08 0.1 0.12 0.14 0.16 0.18 GF FUND BALANCEMillionsRESERVE PERCENTAGEReserve %Reserve Policy (Updated 2009)GF Fund Balance ($) 2021/11/16 City Council Post Agenda Page 115 of 141 FY 2023-2032 City of Chula Vista - General Fund Long-Term Financial Plan 34 POTENTIAL SOLUTIONS FOR ADDRESSING STRUCTURAL OPERATING DEFICIT The LTFP projects future structural deficits throughout the Plan period. Increases in expenditures are projected to outpace revenue growth throughout the forecast period. Below are possible actions that could be further explored in order to develop potential actions to mitigating future deficits. • Technology – Identify and purchase technology that provides a positive return on its public investment. Technology can increase service levels to the constituents without raising costs to the City (ex. Third Party Mobile Applications), it can create new revenues to the City that exceed its costs, or it can reduce costs overall through the replacement of manual processes (ex. provide more services with the same amount of staff). • Policies for use of One-Time Funds – Many cities establish policies to guide the usage of one-time funds so that as grants, donations, and unexpected revenues are received, the funds are allocated to the highest priority in the City automatically. A typical one-time funds policy would first allocate additional revenues to a reserve fund until the minimum required reserve is met, a vehicle and equipment replacement fund, and finally a comprehensive asset management program (capital projects). Other potential uses of one-time funds include projects and services that create ongoing revenue streams (ex. solar projects, business attraction incentives, etc.). • Use of Public Private Partnerships – Public private partnerships are cooperative agreements between a government agency (City), and the private sector to deliver a service or a project and can take a variety of forms. One great example of this type of partnership currently taking place in the City of Chula Vista is within the City’s library system. Several non-profit organizations partner with the City to provide services to the public at local libraries at low or no cost. Other creative public-private partnerships that have been used by other cities include adopt-a-park programs where citizens or local organizations volunteer to maintain or rehabilitate an existing park (ex. Living Coast Discovery Center, Olympic Training Center). • Internship/Volunteer Programs – Utilize volunteers and internships to support City staff with one-time projects, special events, research, and analysis. While these individuals will not perform day-to-day duties of current City employees, they are able to add value without significant cost. A robust internship/volunteer program can create significant financial benefits to the City while providing the individuals volunteering valuable experience and skills that can make them more attractive when seeking full-time employment. • Contract Services – Cities commonly contract out for a variety of services including but not limited to: legal; engineering; financial; and specialty services typically in cases where the City does not possess the in-house expertise to perform the function most efficiently. • Service Levels – Service level can be defined simply as the quantity and quality of the services 2021/11/16 City Council Post Agenda Page 116 of 141 FY 2023-2032 City of Chula Vista - General Fund Long-Term Financial Plan 35 provided by a City. As economic cycles occur and City revenues rise and fall, the most difficult job for a City is to maintain service levels. The structural deficit detailed in the LTFP demonstrates the severity of the projected fiscal condition of the City and the importance of balancing service levels with financial resources. The City should undertake a comprehensive review of all the services provided by the City. By defining these services and setting a minimum standard for the delivery of those services, a model could be developed that prioritizes where potential reductions in service level could take place with the least overall impact to the citizens of Chula Vista. • Fees/Cost Recovery – In general, local governments provide many services to the general population at no charge (ex. Police, Fire, Road Maintenance, Park Maintenance, etc.). These services are paid for with general revenues that the City receives including sales tax, property tax, and a variety of other general revenue sources. Cities also provide many services that are a specific benefit to the party requesting the service. The parties benefiting from these special services are charged a fee. Reviewing development plans, inspecting buildings, renting a park space are all examples of services the City provides that are paid directly by a citizen or developer. The City’s current Master Fee Schedule was adopted to set the fees for all services the City provides directly to a citizen or developer. In practice, fees should be set to recover all costs. Some services are subsidized by the City in order to encourage participation in a program or event. It is important to review all subsidized fees periodically to assess the feasibility of continuing to subsidize these services in the future. • Priority Based Budgeting – During the last recession the City put together a Fiscal Recovery Plan. The plan detailed the steps necessary to navigate through the worst recession in over eighty years by prioritizing divisions and functions and making reductions where necessary in order to balance the budget. By taking a bottom-up approach, the City could review and classify all services by priority in order to identify functions and programs that can be restructured either through attrition or reorganization. Some finance officers refer to this as “zero-based budgeting” because it starts with a blank budget, requires justifications, and funds are allocated in priority order until all funds are allocated. • Competitive Purchasing – The City’s Municipal Code and Charter set competitive bidding requirements on materials, supplies, equipment, and services that the City procures. The minimum threshold of those competitive requirements starts at $10,000 for a single purchase. The reason that cities have minimum bidding thresholds is because at some point it becomes an administrative burden to try and get quotes or bids on smaller dollar items. With more powerful online procurement tools, the City now secures bids extremely efficiently. Procurement cards also provide incentives and negotiated pricing when the City uses them for purchases. Consideration should be made to lower the bidding threshold for certain types of purchases in order to achieve the highest value-added procurement program possible. Other procurement 2021/11/16 City Council Post Agenda Page 117 of 141 FY 2023-2032 City of Chula Vista - General Fund Long-Term Financial Plan 36 related money saving ideas include purchasing manufacturer refurbished items, floor models, certified pre-owned, and alternative product selection (higher value, lower cost). • Municipal Code/Charter Updates – The City’s Municipal Code and Charter lay out the specific terms in which the City must operate. Some areas of the code and Charter are very specific, while other are more general, allowing for some flexibility to City staff when dealing with unique situations. Cities must follow all federal and state laws and codes, but Charter cities such as Chula Vista may impose stricter rules and requirements upon which the City is governed. Some of these rules require greater resources to be spent in order to remain in compliance as compared to more lenient state laws. A thorough review of the existing Charter and Municipal Code may reveal potential money saving opportunities that could be recommended to Council for consideration. POTENTIAL SOLUTIONS TO RESOLVE STRUCTURAL INFRASTRUCTURE DEFICIT The City’s assets continue to age and will require additional repair and rehabilitation in the coming decade and beyond. Measure P, passed in November 2016 will provide much needed funding for a significant portion of the City’s Asset Management Program over the next ten years, but will expire by April 2027. While Measure P does address a significant amount of deferred maintenance items, the infrastructure needs of the City identified in the asset management exceed the funding anticipated to be generated from Measure P. The City will need to continue to pursue additional funding sources to address the City’s capital needs. Many of the solutions mentioned in the operating section overlap into the infrastructure section. These include Public/Private Partnerships, Competitive Purchasing, Use of One-Time Funds, and Service Levels. 2021/11/16 City Council Post Agenda Page 118 of 141 FY 2023-2032 City of Chula Vista - General Fund Long-Term Financial Plan 37 CONCLUSION The LTFP presents a baseline scenario for City General Fund resources over a ten-year period based on currently available information. While all forecasts are subject to uncertainty, the City is currently experiencing a balanced budget with a slight surplus in FY 2023 and deficits for the remainder of the LTFP. In addition to the economic conditions that existed prior to the onset of the COVID-19 pandemic, it is unclear how long the effects of the pandemic will linger as we see growth in our current City revenue assumptions. Staff will be monitoring how federal policies will support local governments, unemployment, infrastructure, and how we will continue to live and work in the City in this “new normal.” Based on projections within the LTFP, the City will be facing General Fund structural deficits in almost every year of the LTFP period starting in FY 2024. In the absence of identifying new revenues or reducing ongoing expenditures, the structural deficits will lower the City’s unassigned (fund) balance. In order to preserve and maintain the valuable resources, current service levels, and quality of life the citizens have enjoyed over the years, the City will need to make a concerted effort to adopt several of the solutions mentioned above. Proactive planning and a commitment to a fiscally sustainable service delivery model will be required. Staff will continue to monitor the budget closely and report to the City Council through the Budget Monitoring process. 2021/11/16 City Council Post Agenda Page 119 of 141 12021/11/16 City Council Post Agenda Page 120 of 141 General Fund Long-Term Financial Plan 2 The General Fund Long-Term Financial Plan (LTFP) serves as a long-range fiscal planning tool •Applies to the General Fund only •Projects budgetary surpluses/shortfalls •Encourages discussion to proactively address the City’s long- range funding needs •Not a budget, but highlights the need to prioritize the allocation of City resources for continued delivery of core services at current and future service levels 2021/11/16 City Council Post Agenda Page 121 of 141 Fiscal Year 2022 -Budgetary Notes •American Rescue Plan Act of 2021 –$57.5 million in Federal funding for responding to the COVID-19 and economic crises in FY 2022 –FY 2025 –Available to support eligible activities to address the COVID-19 pandemic •$350 million Pension Obligation Bonds issued in FY 2021 for refinancing retirement expenses 32021/11/16 City Council Post Agenda Page 122 of 141 Economic Forecast Inflation •Prices in the San Diego area up 6.0% from July 2020 (US BLS) Gross Domestic Product (GDP) •6.3% growth in 2021, growing slightly faster than pre-COVID-19 levels through 2023 (UCLA Anderson) 42021/11/16 City Council Post Agenda Page 123 of 141 Economic Forecast (continued) San Diego Unemployment •6.6% in August 2021, down from 10.8% last year (US BLS) City Housing Market •Median home value increased on average 13% from May 2020 to May 2021 across City zip codes (Zillow) 2021/11/16 City Council Post Agenda Page 124 of 141 LTFP Revenue Assumptions •COVID-19 –Impacts on General Fund assumed to wane by FY23, revenues at pre-COVID-19 levels starting in FY23. •New Development –Otay Ranch Village 8 •Cannabis (Local Tax Revenues) –Budget of $2.8M in FY22 based on current trajectory of cannabis business openings. •Conservative growth rates were applied to other major revenues categories (0.5 -3%). 62021/11/16 City Council Post Agenda Page 125 of 141 LTFP Revenue Assumptions Major Revenues 7 Revenue Growth Rate Property Tax 3% per year Property Tax in Lieu of VLF 3% per year Sales Tax 2% per year Measure P (Sales Tax)2% per year Measure A (Sales Tax)2% per year Franchise Fees 2% per year Utility Users’ Tax (UUT)0.5% per year Transient Occupancy Tax (TOT)2% per year 2021/11/16 City Council Post Agenda Page 126 of 141 Revenue Projections (FY2023 –FY2027) 8 (in millions) Forecast Forecast Forecast Forecast Forecast FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 Revenues: Property Taxes 40.6 41.8 43.1 44.4 45.7 Sales Tax 42.1 43.0 43.8 44.7 45.6 Measure P Sales Tax 26.0 26.6 27.1 27.6 21.1 Measure A Sales Tax 26.1 26.6 27.2 27.7 28.3 Franchise Fees 13.2 13.4 13.7 14.0 14.2 Utility User Taxes 3.8 3.8 3.9 3.9 3.9 Transient Occupancy Taxes 5.0 5.3 5.4 5.6 5.7 Property Tax in lieu of VLF 25.5 26.3 27.1 27.9 28.7 Major Discretionary Revenues 182.4 186.9 191.2 195.7 193.2 Other Revenues 48.9 50.8 51.6 52.3 53.1 New Development Revenues 0.6 1.3 2.0 2.7 3.5 Total General Fund Revenues 232.0 239.0 244.8 250.7 249.9 Year-over-Year Change 6.4%3.0%2.4%2.4%-0.3% 2021/11/16 City Council Post Agenda Page 127 of 141 Revenue Projections (FY2028 –FY2032) 9 (in millions) Forecast Forecast Forecast Forecast Forecast FY 2028 FY 2029 FY 2030 FY 2031 FY 2032 Revenues: Property Taxes 47.1 48.5 50.0 51.5 53.0 Sales Tax 46.5 47.4 48.4 49.4 50.4 Measure P Sales Tax - - - - - Measure A Sales Tax 28.8 29.4 30.0 30.6 31.2 Franchise Fees 14.5 14.8 15.1 15.4 15.7 Utility User Taxes 3.9 3.9 4.0 4.0 4.0 Transient Occupancy Taxes 5.8 5.9 6.0 6.1 6.3 Property Tax in lieu of VLF 29.6 30.5 31.4 32.3 33.3 Major Discretionary Revenues 176.2 180.5 184.8 189.3 193.8 Other Revenues 53.9 54.8 55.6 56.5 57.4 New Development Revenues 3.8 4.0 4.1 4.2 4.4 Total General Fund Revenues 234.0 239.2 244.5 250.0 255.5 Year-over-Year Change -6.4%2.2%2.2%2.2%2.2% 2021/11/16 City Council Post Agenda Page 128 of 141 Expenditure LTFP Assumptions Personnel Services –Includes a 2% wage inflation per year starting in FY 2024 (expiration of MOUs) –Salary savings is calculated at approximately 2% per year (Salaries + PERS + Medicare) –PERS costs reflect estimated contribution rates provided by CalPERs Valuation Report as of June 30, 2020 –Reduction in retirement expenses due to POB issuance increase in City debt service payments –Flex/Insurance increases of 7% (on average) for Safety and Non-Safety groups 102021/11/16 City Council Post Agenda Page 129 of 141 Expenditure LTFP Assumptions (continued) Other Expenditures categories: –Utilities at 5% per year –Other Expenses at 2% per year –Transfers Out includes expenditures related to debt service payments and anticipated transfers to other funds New Development Expenditures –Assumes Bayfront fire station opens in FY2024 –Includes contractual Bayfront Project financial commitments (Bayfront JEPA) –Assumes Otay Ranch Village 8 fire station operational in FY2024 and expansion of other City services 112021/11/16 City Council Post Agenda Page 130 of 141 Expenditure Projections (FY2023 –FY2027) 12 (in millions) Forecast Forecast Forecast Forecast Forecast FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 Expenditures: Personnel Services 101.0 105.6 107.7 109.8 112.0 Retirement - PERS 13.7 13.7 13.7 13.7 13.8 Health Insurance 14.3 15.3 16.3 17.5 18.7 Salary Savings (Ongoing)(2.0) (2.1) (2.2) (2.2) (2.2) Personnel Services Expenditures 126.9 132.4 135.6 138.8 142.2 Other Expenditures subtotal 26.3 27.8 29.0 30.6 32.2 Measure A Obligations 26.1 26.6 27.2 27.7 28.3 Measure P Obligations 26.0 26.6 27.1 27.6 21.1 Transfers/Debt Service 5.9 6.0 6.0 5.9 5.9 Transfers/Debt Service (POBs) 11.8 11.9 12.1 12.2 12.3 Transfers/Section 115 Trust (PRF)7.1 7.8 8.6 8.5 9.0 Other Expenditures 103.3 106.7 109.9 112.6 108.8 Bayfront Fire Station - 0.2 0.9 1.4 1.4 Otay Ranch Village 8 0.6 1.2 1.8 2.5 3.2 New Development Expenditures 0.6 1.4 2.8 3.9 4.6 Total General Fund Expenditures 230.8 240.5 248.2 255.4 255.7 Year-over-Year Change 5.8%4.2%3.2%2.9%0.1% 2021/11/16 City Council Post Agenda Page 131 of 141 Expenditure Projections (FY2028 –FY2032) 13 (in millions) Forecast Forecast Forecast Forecast Forecast FY 2028 FY 2029 FY 2030 FY 2031 FY 2032 Expenditures: Personnel Services 114.3 116.5 118.9 121.2 123.7 Retirement - PERS 13.9 14.3 14.7 15.1 15.5 Health Insurance 20.0 21.4 22.9 24.5 26.2 Salary Savings (Ongoing)(2.3) (2.3) (2.4) (2.4) (2.5) Personnel Services Expenditures 145.9 149.9 154.1 158.4 162.9 Other Expenditures subtotal 33.6 35.1 36.7 38.3 39.9 Measure A Obligations 28.8 29.4 30.0 30.6 31.2 Measure P Obligations - - - - - Transfers/Debt Service 5.6 5.6 5.7 5.7 5.7 Transfers/Debt Service (POBs) 12.5 12.6 12.7 12.9 13.3 Transfers/Section 115 Trust (PRF)9.4 9.8 10.2 10.3 - Other Expenditures 89.9 92.5 95.2 97.7 90.1 Bayfront Fire Station 1.4 1.5 1.5 1.6 1.6 Otay Ranch Village 8 3.7 4.0 4.1 4.2 4.3 New Development Expenditures 5.2 5.5 5.7 5.8 5.9 Total General Fund Expenditures 240.9 247.9 255.0 261.9 258.9 Year-over-Year Change -5.8%2.9%2.8%2.7%-1.1% 2021/11/16 City Council Post Agenda Page 132 of 141 Fiscal Projections Summary (FY2023 –FY2027) 14 (in millions) Forecast Forecast Forecast Forecast Forecast FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 Revenues: Major Discretionary Revenues 182.4 186.9 191.2 195.7 193.2 Other Revenues 48.9 50.8 51.6 52.3 53.1 New Development Revenues 0.6 1.3 2.0 2.7 3.5 Total General Fund Revenues 232.0 239.0 244.8 250.7 249.9 Year-over-Year Change 6.4%3.0%2.4%2.4%-0.3% Expenditures: Personnel Services Expenditures 126.9 132.4 135.6 138.8 142.2 Other Expenditures 103.3 106.7 109.9 112.6 108.8 New Development Expenditures 0.6 1.4 2.8 3.9 4.6 Total General Fund Expenditures 230.8 240.5 248.2 255.4 255.7 Year-over-Year Change 5.8%4.2%3.2%2.9%0.1% General Fund Surplus / (Deficit)1.2$ (1.5)$ (3.4)$ (4.7)$ (5.8)$ Surplus / (Deficit) as a % of Budget 0.5%-0.6%-1.4%-1.8%-2.3% 2021/11/16 City Council Post Agenda Page 133 of 141 Fiscal Projections Summary (FY2028 –FY2032) 15 (in millions) Forecast Forecast Forecast Forecast Forecast FY 2028 FY 2029 FY 2030 FY 2031 FY 2032 Revenues: Major Discretionary Revenues 176.2 180.5 184.8 189.3 193.8 Other Revenues 53.9 54.8 55.6 56.5 57.4 New Development Revenues 3.8 4.0 4.1 4.2 4.4 Total General Fund Revenues 234.0 239.2 244.5 250.0 255.5 Year-over-Year Change -6.4%2.2%2.2%2.2%2.2% Expenditures: Personnel Services Expenditures 145.9 149.9 154.1 158.4 162.9 Other Expenditures 89.9 92.5 95.2 97.7 90.1 New Development Expenditures 5.2 5.5 5.7 5.8 5.9 Total General Fund Expenditures 240.9 247.9 255.0 261.9 258.9 Year-over-Year Change -5.8%2.9%2.8%2.7%-1.1% General Fund Surplus / (Deficit)(6.9)$ (8.7)$ (10.5)$ (12.0)$ (3.4)$ Surplus / (Deficit) as a % of Budget -2.9%-3.5%-4.1%-4.6%-1.3% 2021/11/16 City Council Post Agenda Page 134 of 141 New Development Otay Ranch Village 8 •HomeFed project •2,300+ residential units •Projected Completion: Dec. 2023 (FY24) •Projected Fire station staffing: 12 FTE positions (4-0 Staffing) •Revenues from property tax, sales tax, TOT, etc. •Expenditures for general government, city infrastructure services, public safety and animal care services •Neighborhood parks operations paid for by developer •Modest, net positive General Fund impact 162021/11/16 City Council Post Agenda Page 135 of 141 Section 115 Trust 17 The Pension Reserve Fund is in a Section 115 Trust account. The following is the scheduled contributions based on the Pension Reserve Policy: CalPERS Valuation Report (June 30, 2019) All Funds Contribution Total Est. General Fund Contribution Total FY2022 8.3$ 5.9$ FY2023 9.9 7.1 FY2024 10.8 7.8 FY2025 12.0 8.6 FY2026 11.9 8.5 FY2027 12.5 9.0 FY2028 13.1 9.4 FY2029 13.6 9.8 FY2030 14.2 10.2 FY2031 14.4 10.3 Total 120.7$ 86.4$ Section 115 Trust Contributions (in millions) POB outstanding prinicipal balance as of July 1, 2031 (FY2032) $255.1 million 2021/11/16 City Council Post Agenda Page 136 of 141 LTFP Forecast Risk 18 •Lingering COVID-19 fiscal impacts •Markets –Inflation, supply chain disruptions, home price changes, unemployment, wage increases •Economic downturns –Not included in LTFP but possible 2021/11/16 City Council Post Agenda Page 137 of 141 LTFP Takeaways Annual growth in expenditures outpaces annual growth in revenues from FY2024 –FY2032 structural deficit Monitor future General Fund budget impacts: •American Rescue Plan •Federal infrastructure funding bill •Sunset of Measure P sales tax and funding capital/deferred maintenance •Bayfront, Otay Ranch Village 8 and new development projects become operational •Future PERS liabilities, mitigated in part by Pension Reserve Fund •Bayfront Project catalyzing growth of City revenues 192021/11/16 City Council Post Agenda Page 138 of 141 Potential Actions Potential actions to mitigate future deficits: •Technology •Policies for use of One-Time Funds •Use of Public-Private Partnerships •Internship/Volunteer Programs •Contract Services •Measure P replacement 202021/11/16 City Council Post Agenda Page 139 of 141 Next Steps 21 December 2021 •Fiscal Year 2022 First Quarter Financial Report January 2022 •Presentation of the Fiscal Year 2021 Annual Comprehensive Financial Report January/February 2022 •Mid-Year Fiscal Year 2022 Budget Review (Fiscal Year 2022 Second Quarter Financial Report) •Develop Fiscal Year 2023 Baseline Budget; include changes from Mid-Year Budget Review March 2022 •City Council Workshop: FY 2023 Budget Projection Discussion, Updated LTFP Discussion April 2022 •Preliminary City Manager Proposed Budget Council Discussion Item •Fiscal Year 2022 Third Quarter Financial Report May 2022 •Hold public workshop(s) to provide overview of Fiscal Year 2023 proposed budget •City Manager Proposed Budget document submitted to Council •City Council: Present Fiscal Year 2023 All Funds Budget and CIP Overview •Public Hearing and Recommend Council adoption of Proposed FY 2023 Budget (All Funds) 2021/11/16 City Council Post Agenda Page 140 of 141 Feedback/Comments 222021/11/16 City Council Post Agenda Page 141 of 141