The URL can be used to link to this page

20240220 Regular City Council Meeting - PacketRegular City Council Meeting Agenda February 20, 2024 Page 1 of 5 Agenda City of Vernon Regular City Council Meeting Tuesday, February 20, 2024, 9:00 AM City Hall, Council Chamber 4305 Santa Fe Avenue, Vernon, California Crystal Larios, Mayor Judith Merlo, Mayor Pro Tem Melissa Ybarra, Council Member Leticia Lopez, Council Member Jesus Rivera, Council Member The public is encouraged to view the agenda and meeting at CityofVernon.org/publicmeetings. You may address the Council in the Council Chambers, via mail or email to PublicComment@cityofvernon.org, include the meeting date and item number in the subject line (mail and/or email must be received at least two hours prior to the start of the meeting). CALL TO ORDER FLAG SALUTE ROLL CALL APPROVAL OF AGENDA PUBLIC COMMENT At this time the public is encouraged to address the City Council on any matter that is within the subject matter jurisdiction of the City Council. The public will also be given a chance to comment on matters which are on the posted agenda during City Council deliberation on those specific matters. PRESENTATIONS 1. Employee Service Pin Awards Recommendation: Recognize January 2024 Employee Service Pin Award recipients. Regular City Council Meeting Agenda February 20, 2024 Page 2 of 5 CONSENT CALENDAR All matters listed on the Consent Calendar are to be approved with one motion. Items may be removed from the Consent Calendar for individual consideration. Removed items will be considered immediately following the Consent Calendar. 2. Meeting Minutes Recommendation: Approve the February 6, 2024 Regular City Council Meeting Minutes. 3. Claims Against City Recommendation: Receive and file the claim submitted by Jonathan Amoni. 4. Operating Account Warrant Register Recommendation: Approve Operating Account Warrant Register No. 124, for the period of December 31, 2023 through January 20, 2024, totaling $11,540,818.28 and consisting of ratification of electronic payments totaling $11,029,802.74 and ratification of the issuance of early checks totaling $511,015.54. 5. Fire Department Activity Report Recommendation: Receive and file the December 2023 Fire Department Activity Report. 6. Police Department Activity Report Recommendation: Receive and file the December 2023 Police Activity Report. 7. Public Improvements Agreement No. 2024-01 with Shewak & Laiwanti Holdings, LLC Recommendation: A. Find that the proposed action is categorically exempt from California Environmental Quality Act (CEQA) review, in accordance with CEQA Guidelines Section 15301, because the project consists of the maintenance, repair or minor alteration of an existing facility and involves negligible or no expansion of an existing use; and B. Approve and authorize the Mayor to execute a Public Improvements Agreement with Shewak & Laiwanti Holdings, LLC, in substantially the same form as submitted, for the City to construct necessary frontage improvements and receive payment in the amount of $137,651.55. 8. National Auto Fleet Group Vehicle Purchase Recommendation: A. Approve and authorize the purchase of one new 2024 Ford Super Duty F-350 DRW for a total amount not-to-exceed $72,923.24; and B. Authorize a contingency amount of $7,292.32 (approximately 10%) should the purchase of a comparable Utility Truck be necessary due to limited vehicle inventory, and grant authority to the City Administrator to issue a Supplemental to the Purchase Order to National Auto Fleet Group for an amount up to the contingency amount. Regular City Council Meeting Agenda February 20, 2024 Page 3 of 5 9. Purchase Order with D&R Office Works, Inc. Recommendation: A. Approve the issuance of a Purchase Order with D&R Office Works, Inc. for the purchase of chairs and workspaces for the Police Department, for a total amount not-to-exceed $21,679; and B. Authorize a contingency amount of 8%, or $1,735 for unforeseen price increases or substitutions due to inventory availability, and grant authority to the City Administrator to issue Change Orders for an amount up to the contingency amount, if necessary. 10. Purchase Order with Charles P. Crowley Company Recommendation: A. Find that the proposed action is categorically exempt from California Environmental Quality Act (CEQA) review, in accordance with CEQA Guidelines Section 15301, because installation of monitoring equipment consists of minor alteration of existing structures/facilities and involves negligible or no expansion of an existing use; B. Accept the bid from Charles P. Crowley Company as the lowest responsive and responsible bidder and reject all other bids; and C. Approve and authorize the issuance of a purchase order with Charles P. Crowley Company for the procurement of turbidity monitoring equipment, for a total amount not-to- exceed $106,228.14. NEW BUSINESS 11. Fiscal Year 2022-23 Audited Financial Reports Recommendation: A. Receive and file the Fiscal Year 2022-23 Annual Financial Statements; and B. Extend submittal of the Fiscal Year 2023-24 Final Audit and Report to Council to January 21, 2025. 12. Fiscal Year 2023-24 Mid-Year Financial Update Recommendation: Adopt Resolution No. 2024-02 authorizing and approving mid-year budget appropriations and amending the Annual Operating and Capital Budget for Fiscal Year 2023-24. 13. Professional Services Agreement with Architerra Design Group for Landscape Architectural Services – City Hall Plaza Recommendation: A. Find that the proposed action is categorically exempt under the California Environmental Quality Act (CEQA) review, in accordance with CEQA Guidelines Section 15262, because the project only involves feasibility or planning studies for possible future actions which the City has not approved, adopted, or funded; and B. Approve and authorize the City Administrator to execute a Professional Services Agreement with Architerra Design Group in substantially the same form as submitted, for the design of the Civil Plaza for a total amount not-to-exceed $122,930 for a three-year term. Regular City Council Meeting Agenda February 20, 2024 Page 4 of 5 ORAL REPORTS 14. City Administrator Reports on Activities and Other Announcements 15. Council Reports on Activities (including AB 1234), Announcements, or Directives to Staff CLOSED SESSION 16. Conference with Legal Counsel – Anticipated Litigation Government Code Section 54956.9(d)(2) Significant exposure to litigation (one potential matter) CLOSED SESSION REPORT ADJOURNMENT On February 15, 2024, the foregoing agenda was posted in accordance with the applicable legal requirements. Regular and Adjourned Regular meeting agendas may be amended up to 72 hours and Special meeting agendas may be amended up to 24 hours in advance of the meeting. Regular City Council Meeting Agenda February 20, 2024 Page 5 of 5 Guide to City Council Proceedings Meetings of the City Council are held the first and third Tuesday of each month at 9:00 a.m. and are conducted in accordance with Rosenberg's Rules of Order (Vernon Municipal Code Section 2.04.020). Copies of all agenda items and back-up materials are available for review in the City Clerk Department, Vernon City Hall, 4305 Santa Fe Avenue, Vernon, California, and are available for public inspection during regular business hours, Monday through Thursday, 7:00 a.m. to 5:30 p.m. Agenda reports may be reviewed on the City's website at www.cityofvernon.org or copies may be purchased for $0.10 per page. Disability-related services are available to enable persons with a disability to participate in this meeting, consistent with the Americans with Disabilities Act (ADA). In compliance with ADA, if you need special assistance, please contact the City Clerk department at CityClerk@cityofvernon.org or (323) 583-8811 at least 48 hours prior to the meeting to assure arrangements can be made. The Public Comment portion of the agenda is for members of the public to present items, which are not listed on the agenda but are within the subject matter jurisdiction of the City Council. The City Council cannot take action on any item that is not on the agenda but matters raised under Public Comment may be referred to staff or scheduled on a future agenda. Comments are limited to three minutes per speaker unless a different time limit is announced. Speaker slips are available at the entrance to the Council Chamber. Public Hearings are legally noticed hearings. For hearings involving zoning matters, the applicant and appellant will be given 15 minutes to present their position to the City Council. Time may be set aside for rebuttal. All other testimony shall follow the rules as set for under Public Comment. If you challenge any City action in court, you may be limited to raising only those issues you or someone else raised during the public hearing, or in written correspondence delivered to the City Clerk at or prior to the public hearing. Consent Calendar items may be approved by a single motion. If a Council Member or the public wishes to discuss an item, it may be removed from the calendar for individual consideration. Council Members may indicate a negative or abstaining vote on any individual item by so declaring prior to the vote on the motion to adopt the Consent Calendar. Items excluded from the Consent Calendar will be taken up following action on the Consent Calendar. Public speakers shall follow the guidelines as set forth under Public Comment. New Business items are matters appearing before the Council for the first time for formal action. Those wishing to address the Council on New Business items shall follow the guidelines for Public Comment. Closed Session allows the Council to discuss specific matters pursuant to the Brown Act, Government Code Section 54956.9. Based on the advice of the City Attorney, discussion of these matters in open session would prejudice the position of the City. Following Closed Session, the City Attorney will provide an oral report on any reportable matters discussed and actions taken. At the conclusion of Closed Session, the Council may continue any item listed on the Closed Session agenda to the Open Session agenda for discussion or to take formal action as it deems appropriate. City Council Agenda Report Meeting Date:February 20, 2024 From:Michael Earl, Director of Human Resources Department:Human Resources Submitted by:Veronica Avendano, Human Resources Specialist Subject Employee Service Pin Awards Recommendation Recognize January 2024 Employee Service Pin Award recipients. Background The following employees are eligible to receive their service pin based on the number of service years with the City of Vernon: THIRTY-FIVE YEARS OF SERVICE Carlos R. Fandino, Jr., City Administrator, Hired January 1989 FIVE YEARS OF SERVICE Alfonso M. Madrigal, Police Officer, Hired January 2019 Fiscal Impact There is no fiscal impact associated with this report. Attachments None. . . Item 1 Page 1 of 1 City Council Agenda Report Meeting Date:February 20, 2024 From:Lisa Pope, City Clerk Department:City Clerk Submitted by:Sandra Dolson, Administrative Secretary Subject Meeting Minutes Recommendation Approve the February 6, 2024 Regular City Council Meeting Minutes. Background Staff has prepared and submits the minutes for approval. Fiscal Impact There is no fiscal impact associated with this report. Attachments 1. February 6, 2024 Regular City Council Meeting Minutes . . Item 2 Page 1 of 1 MINUTES VERNON CITY COUNCIL REGULAR MEETING TUESDAY, FEBRUARY 6, 2024 COUNCIL CHAMBER, 4305 SANTA FE AVENUE CALL TO ORDER Mayor Larios called the meeting to order at 9:01 a.m. FLAG SALUTE The Vernon Police Department Honor Guard presented the colors and led the Flag Salute. ROLL CALL PRESENT: Crystal Larios, Mayor Judith Merlo, Mayor Pro Tem Melissa Ybarra, Council Member Jesus Rivera, Council Member ABSENT Leticia Lopez, Council Member STAFF PRESENT: Carlos Fandino, City Administrator Zaynah Moussa, City Attorney Lisa Pope, City Clerk Jessica Alcaraz, Financial Services Administrator Fredrick Agyin, Health and Environmental Control Director Michael Earl, Human Resources Director Robert Sousa, Police Chief Dan Wall, Public Works Director Todd Dusenberry, Public Utilities General Manager APPROVAL OF THE AGENDA MOTION Mayor Pro Tem Merlo moved and Council Member Ybarra seconded a motion to approve the agenda. The question was called and the motion carried 4-0, Council Member Lopez absent. PUBLIC COMMENT None. . . Item 2 Page 1 of 4 Regular City Council Meeting Minutes Page 2 of 4 February 6, 2024 PRESENTATIONS 1. Swearing-In Ceremony for Various Personnel in the Police Department Police Chief Sousa presented the staff report and introduced new Police Officers Aaron Perry, Bryan Silva; Sergeants Edward Hernandez and Carlos Ourique; and Lieutenant Gabriel Martinez. City Clerk Pope administered the Oaths of Office. 2. City Administrator Report City Administrator Fandino presented a PowerPoint and provided information on various topics including New Business Welcome, Tree Planting with Vernon Elementary, Vernon Randolph-to-River Greenway Project, City of Vernon General Municipal Election, Vernon CommUNITY Fund Scholarships, Community Partner Engagement, and Community Events. CONSENT CALENDAR MOTION Council Member Ybarra moved and Mayor Larios seconded a motion to approve the Consent Calendar. The question was called and the motion carried 4-0, Council Member Lopez absent. The Consent Calendar consisted of the following items: 3. Meeting Minutes Recommendation: Approve the January 16, 2024 Regular City Council Meeting Minutes. 4. Claims Against City Recommendation: Receive and file claims submitted by Joshua Tsiu and Victor Hernandez. 5. Operating Account Warrant Register Recommendation: Approve Operating Account Warrant Register No. 123, for the period of December 17 through December 30, 2023, totaling $6,966,220.21 and consisting of ratification of electronic payments totaling $6,498,266.73 and ratification of the issuance of early checks totaling $467,953.48. 6. Redevelopment Agency Obligation Retirement Account Warrant Register Recommendation: Approve Redevelopment Agency Obligation Retirement Account Warrant Register No. 68, for the period of October 1 through December 30, 2023 and consisting of ratification of electronic payments totaling $2,250. 7. Public Works Department Monthly Report Recommendation: Receive and file the November 2023 and December 2023 Building Reports. 8. Quarterly Report of Cash and Investments Recommendation: Receive and file the Fourth Quarter Cash and Investments Report. . . Item 2 Page 2 of 4 Regular City Council Meeting Minutes Page 3 of 4 February 6, 2024 9. Lease Agreement with TreePeople, Inc. Recommendation: Approve and authorize the City Administrator to execute a Lease Agreement with TreePeople, Inc., in substantially the same form as submitted, for a one-year term. 10. Renewable Energy Credit Confirmation with Silver Peak Energy, LLC Recommendation: A. Find the action is not in reference to a “project” subject to the California Environmental Quality Act (CEQA) under Guidelines Section 15378 because it involves the continuing administrative activity of purchasing power and resource adequacy; and even if it were a “project” subject to CEQA, the approval requested is exempt in accordance with CEQA Guidelines Section 15061(b)(3), the general rule that CEQA only applies to projects that may have a significant effect on the environment, and any construction that may occur by a private party in the future in reliance on this approval would be subject to CEQA review by another governmental agency at the time when actual details of any physical proposal would be more than speculative; B. Approve, as to form, the Edison Electric Institute Master Power Purchase and Sale Agreement, in substantially the same form as submitted, for the purpose of buying and selling power and resource adequacy consistent with the Transaction Authority as defined in the Energy Risk Management Policy; and C. Approve and authorize the General Manager of Public Utilities to execute the Renewable Energy Credit Confirmation with Silver Peak Energy, LLC in substantially the same form as submitted, for the Sale and Purchase of Portfolio Content Category Product 1 Energy in the amount-not-to exceed of $1,674,000. NEW BUSINESS 11. Environmental Sustainability Action Plan Health and Environmental Control Director Agyin, Stephanie Cadena and Jeff Caton, Environmental Science Associates, presented the staff report and accompanying PowerPoint. MOTION Council Member Ybarra moved and Mayor Pro Tem Merlo seconded a motion to adopt the Environmental Sustainability Action Plan. The question was called and the motion carried 4-0, Council Member Lopez absent. 12. Best Practices for Ballot Measure and Campaign Activities for Local Government Officials City Attorney Moussa presented the staff report and accompanying PowerPoint. REPORTS 13. City Administrator Reports on Activities and Other Announcements. . . Item 2 Page 3 of 4 Regular City Council Meeting Minutes Page 4 of 4 February 6, 2024 City Administrator Fandino discussed recent storm impacts, causing delays in the City’s street improvement work. He announced the WEA team visit to the Vernon Village Park Apartments to inform residents of available services at the Vernon Health + Wellness Center; and Vernon CommUNITY Fund scholarship program. 14. City Council Reports on Activities (including AB 1234), Announcements, or Directives to Staff. None. CLOSED SESSION RECESS Mayor Larios recessed the meeting to Closed Session at 9:51 a.m. 15. Conference with Legal Counsel – Anticipated Litigation Government Code Section 54956.9(d)(2) Significant exposure to litigation (one potential matter) 16. Conference with Legal Counsel – Existing Litigation Government Code Section 54956.9(d)(1) Maria Madrigal v. City of Vernon Workers Compensation Appeals Board Case Nos.: ADJ12881762 and ADJ12881765 RECONVENE At 10:35 a.m. Mayor Larios adjourned the Closed Session and reconvened the regular meeting. CLOSED SESSION REPORT City Attorney Moussa reported the Council met in Closed Session, discussed the items on the agenda, and took no reportable action. ADJOURNMENT Mayor Larios adjourned the meeting at 10:35 a.m. ______________________________ CRYSTAL LARIOS, Mayor ATTEST: ____________________________ LISA POPE, City Clerk (seal) . . Item 2 Page 4 of 4 City Council Agenda Report Meeting Date:February 20, 2024 From:Lisa Pope, City Clerk Department:City Clerk Submitted by:Yonnie Parker, Deputy City Clerk Subject Claims Against City Recommendation Receive and file the claim submitted by Jonathan Amoni. Background The City received the following claim and pursuant to Vernon Municipal Code Section 2.32.040, the claim is being presented to City Council as soon after filing as practical. Fiscal Impact There is no fiscal impact associated with this report. Attachments 1. Jonathan Amoni Claim Name of Claimant Amount Demanded Date Received Jonathan Amoni $200 January 22, 2024 . . Item 3 Page 1 of 1 . . Item 3 Page 1 of 5 . . Item 3 Page 2 of 5 . . Item 3 Page 3 of 5 . . Item 3 Page 4 of 5 . . Item 3 Page 5 of 5 City Council Agenda Report Meeting Date:February 20, 2024 From:Jessica Alcaraz, Financial Services Administrator Department:Finance Submitted by:John Lau, Accountant Subject Operating Account Warrant Register Recommendation Approve Operating Account Warrant Register No. 124, for the period of December 31, 2023 through January 20, 2024, totaling $11,540,818.28 and consisting of ratification of electronic payments totaling $11,029,802.74 and ratification of the issuance of early checks totaling $511,015.54. Background Vernon Municipal Code Section 2.32.060 indicates the City Treasurer, or an authorized designee, shall prepare warrants covering claims or demands against the City which are to be presented to City Council for its audit and approval. Staff previously presented the City payroll warrant as a separate agenda item for Council ratification. As of January 1, 2024 payroll processing transitioned from Eden to Enterprise ERP, formerly known as Munis, changing the compiling of all Operating Account disbursements into one warrant register. Thus moving forward, payroll information will be included in the Operating Account Warrant Register. Pursuant to the aforementioned code section, the Deputy City Treasurer has prepared Operating Account Warrant Register No. 124 covering claims and demands presented during the period of December 31, 2023 through January 20, 2024, drawn, or to be drawn, from East West Bank for City Council approval. Fiscal Impact The fiscal impact of approving Operating Account Warrant Register No. 124, totals $11,540,818.28. The Finance Department has determined that sufficient funds to pay such claims/demands, are available in the respective accounts referenced on Operating Account Warrant Register No. 124. Attachments 1. Operating Account Warrant Register No. 124 . . Item 4 Page 1 of 1 STAFF REPORT FINANCE/TREASURY DEPARTMENT DATE: TO: February 12, 2024 Honorable Mayor and City Council FROM: RE: Joaquin Leon, Deputy City Treasurer Operating Account Warrant Register for City Council Agenda of February 20, 2024 It is recommended that the attached Operating Account Warrant Register No. 124 be approved at the City Council meeting of February 20, 2024. Operating Account Warrant Register No. 124 totals $11,540,818.28, and covers claims and demands presented for December 31, 2023 to January 20, 2024, drawn or to be drawn, from East West Bank. The following list details the components of Operating Account Warrant Register No. 124: 1. Ratification of electronic payments totaling $11,029,802.74. 2. Ratification of the issuance of early checks totaling $511,015.54. . . Item 4 Page 1 of 57 OPERATING ACCOUNT WARRANT REGISTER City of Vernon No.124 I hereby Certify: that claims or demands covered by the above listed warrants have been audited as to accuracy and availability of funds for payments thereof; and that said claims or demands are accurate and that funds are available for payments thereof. This is to certify that the claims or demands covered by the above listed warrants have been audited by the City Council of the City of Vernon and that all of said warrants are approved for pay- ments except Warrant Numbers: Joaqui Deputy DATE DATE 2/13/2024Date: Page 1 of 1 Operating Account Warrant Register Cover - 124 : Warrant . . Item 4 Page 2 of 57 CITY OF VERNON OPERATING ACCOUNT WARRANT REGISTER NO. 124 DATE 2/20/2024 EARLY CHECKS TOTAL:511,015.54 456.31VENDOR - 4163 - CENTRAL FORD AUTOMOTIVE, INC. Invoice Description 37844 PAYMENT # 612184 1/4/2024 Line Item Amount 456.31 Account PO or Contract 240016AUTO PARTS 011-040-420-522000 Invoice Total:456.31 VENDOR - 1336 - CURRENT WHOLESALE ELECTRIC Invoice Description 280974 PARTS FOR PP2 WELL PAYMENT # 612185 PO or Contract 240024 1/4/2024 Line Item Amount 1,475.50 4,296.26 Account 058-070-700-660000 Invoice Total: 240024 1,475.50 280975 280987 PARTS FOR PP2 WELL PARTS FOR PP2 WELL 058-070-700-660000 058-070-700-660000 1,343.84 Invoice Total: 240024 1,343.84 1,476.92 Invoice Total:1,476.92 VENDOR - 7107 - GEOTAB USA, INC Invoice Description IN368215 GEOTAB GPS SERVICES PAYMENT # 612186 PO or Contract 20240030 1/4/2024 Line Item Amount 750.50 750.50 290.51 Account 011-040-420-529000 Invoice Total:750.50 VENDOR - 309 - NAPA AUTO PARTS Invoice Description 213570 PAYMENT # 612187 PO or Contract 240014 1/4/2024 Account Line Item Amount 62.45AUTO PARTS AUTO PARTS 011-040-420-522000 Invoice Total: 240014 62.45 2248-213560 011-040-420-522000 228.06 Invoice Total:228.06 VENDOR - 3106 - OCEAN BLUE ENVIRONMENTAL PAYMENT # 612188 PO or Contract HD-0053-1 1/4/2024 Line Item Amount 4,191.20 9,508.29 Invoice 39051 Description Account ENVIRONMENTAL CLEAN UP SERVICES 10/23 011-020-200-529225 Page 1 of 55 . . Item 4 Page 3 of 57 CITY OF VERNON OPERATING ACCOUNT WARRANT REGISTER NO. 124 DATE 2/20/2024 Invoice Total:4,191.20 39262 ENVIRONMENTAL CLEAN UP SERVICES 12/23 011-020-200-529225 HD-0053-1 5,317.09 Invoice Total:5,317.09 VENDOR - 3908 - RAFAEL A. LOPEZ Invoice Description 9775 PAYMENT # 612189 PO or Contract 240013 1/4/2024 120.00 Account Line Item Amount TIRE REPAIR 011-040-420-529000 120.00 Invoice Total:120.00 VENDOR - 7410 - RICARDO HERNANDEZ Invoice Description 43253 PAYMENT # 612190 PO or Contract 20240143 1/4/2024 1,105.00 Account Line Item Amount SMOG CHECK SERVICES SMOG CHECK SERVICES SMOG CHECK SERVICES SMOG CHECK SERVICES SMOG CHECK SERVICES SMOG CHECK SERVICES SMOG CHECK SERVICES SMOG CHECK SERVICES SMOG CHECK SERVICES SMOG CHECK SERVICES 011-040-420-529000 65.00 65.00 65.00 65.00 65.00 65.00 65.00 65.00 65.00 65.00 65.00 65.00 65.00 65.00 65.00 65.00 65.00 65.00 65.00 65.00 Invoice Total: 2024014343261 43268 43271 43276 43281 43282 43286 43299 43303 011-040-420-529000 011-040-420-529000 011-040-420-529000 011-040-420-529000 011-040-420-529000 011-040-420-529000 011-040-420-529000 011-040-420-529000 011-040-420-529000 Invoice Total: 20240143 Invoice Total: 20240143 Invoice Total: 20240143 Invoice Total: 20240143 Invoice Total: 20240143 Invoice Total: 20240143 Invoice Total: 20240143 Invoice Total: 20240143 Invoice Total: Page 2 of 55 . . Item 4 Page 4 of 57 CITY OF VERNON OPERATING ACCOUNT WARRANT REGISTER NO. 124 DATE 2/20/2024 43313 43316 43321 43323 43349 43402 43600 SMOG CHECK SERVICES SMOG CHECK SERVICES SMOG CHECK SERVICES SMOG CHECK SERVICES SMOG CHECK SERVICES SMOG CHECK SERVICES SMOG CHECK SERVICES 011-040-420-529000 011-040-420-529000 011-040-420-529000 011-040-420-529000 011-040-420-529000 011-040-420-529000 011-040-420-529000 20240143 65.00 65.00 65.00 65.00 65.00 65.00 65.00 65.00 65.00 65.00 65.00 65.00 65.00 65.00 Invoice Total: 20240143 Invoice Total: 20240143 Invoice Total: 20240143 Invoice Total: 20240143 Invoice Total: 20240143 Invoice Total: 20240143 Invoice Total: VENDOR - 805 - RIO HONDO COLLEGE PAYMENT # 612191 PO or Contract 1/4/2024 50.00 Invoice Description Account Line Item Amount F22239ZVRN REGISTRATION / D. GONZALEZ 011-010-120-529905 50.00 Invoice Total:50.00 VENDOR - 2358 - TETRA TECH, INC PAYMENT # 612192 PO or Contract HD-0045 1/4/2024 7,381.31 Invoice 52177036 Description Account Line Item Amount ANNUAL VAPOR MONITORING AND SAMPLING 11/23 011-020-200-529225 7,381.31 Invoice Total:7,381.31 VENDOR - 6997 - TRINITY CONSULTANTS, INC PAYMENT # 612193 PO or Contract 20230076 1/4/2024 3,364.30 Invoice 1420094 Description Account Line Item Amount ODOR STUDY PROJECT 230510.0001 011-020-200-529225 3,364.30 Invoice Total:3,364.30 VENDOR - 4026 - AIRWAVE COMMUNICATIONS PAYMENT # 612194 1/11/2024 1,077.38 Page 3 of 55 . . Item 4 Page 5 of 57 CITY OF VERNON OPERATING ACCOUNT WARRANT REGISTER NO. 124 DATE 2/20/2024 Invoice 20097 20097 Description Account PO or Contract Line Item Amount 567.38AUTO REPAIRS AUTO REPAIRS 011-040-420-522000 011-040-420-529000 240289 240289 510.00 Invoice Total:1,077.38 VENDOR - 7697 - AMERICAN INDUSTRIAL INSPECTION PAYMENT # 612195 PO or Contract 20240219 1/11/2024 8,365.50 150.00 Invoice 1325 Description Account Line Item Amount HEATING WATER REDUCER REPLACEMENT 055-050-586-529005-8,365.50 Invoice Total:8,365.50 VENDOR - 7449 - ANDREW C. LARA Invoice Description 120723 PAYMENT # 612196 PO or Contract 1/11/2024 Account Line Item Amount SEWC ATTENDANCE STIPEND MEETING 12/07/23 095-095-905-705070-150.00 Invoice Total:150.00 VENDOR - 1948 - AT&T Invoice PAYMENT # 612197 PO or Contract 1/11/2024 7,956.56 Description Account Line Item Amount 112023 ACCT 32327789495040 PERIOD: 10/20- 11/19/23 011-010-110-522010 3,978.57 Invoice Total: Invoice Total: 3,978.57 122023 ACCT 32327789495040 PERIOD: 11/20-12/19 011-010-110-522010 3,977.99 3,977.99 VENDOR - 2889 - AT&T MOBILITY PAYMENT # 612198 PO or Contract 1/11/2024 46.23 Invoice Description Account Line Item Amount 832176480X12 ACCT 832176480 PERIOD 11/09-12/08/23 162023 011-010-110-526010 46.23 Invoice Total:46.23 VENDOR - 4448 - BATTERY SYSTEMS, INC PAYMENT # 612199 1/11/2024 602.51 Page 4 of 55 . . Item 4 Page 6 of 57 CITY OF VERNON OPERATING ACCOUNT WARRANT REGISTER NO. 124 DATE 2/20/2024 Invoice Description Account PO or Contract Line Item Amount 602.513896240110083 VEHICLE BATTERIES 9 011-040-420-522000 240021 Invoice Total:602.51 VENDOR - 256 - CALPORTLAND COMPANY PAYMENT # 612200 PO or Contract 20240059 1/11/2024 2,096.43 Invoice 96094706 Description Account Line Item Amount CONCRETE CONCRETE 058-070-700-529000 1,405.70 1,405.70 690.73 Invoice Total: 2024005996154987058-070-700-529000 Invoice Total:690.73 VENDOR - 4163 - CENTRAL FORD AUTOMOTIVE, INC. Invoice Description 38314 PAYMENT # 612201 PO or Contract 240016 1/11/2024 582.12 150.00 Account Line Item Amount AUTO PARTS 011-040-420-522000 582.12 Invoice Total:582.12 VENDOR - 7523 - CHUONG V. VO Invoice Description 120723 PAYMENT # 612202 PO or Contract 1/11/2024 Account Line Item Amount SEWC ATTENDANCE STIPEND MEETING 12/07/23 095-095-905-705070-150.00 Invoice Total:150.00 VENDOR - 5490 - CINTAS CORPORATION NO. 2 PAYMENT # 612203 PO or Contract CS-1397 1/11/2024 122.98 Invoice Description FIRST AID REFILL Account Line Item Amount 5190451089 011-040-415-524000 122.98 Invoice Total:122.98 VENDOR - 7735 - COMMVAULT SYSTEMS, INC.PAYMENT # 612204 PO or Contract 240281 1/11/2024 1,800.00 Invoice Description Account Line Item Amount 100098816 ADDITIONAL METALLIC LICENSES 011-010-110-522010 1,800.00 Invoice Total:1,800.00 Page 5 of 55 . . Item 4 Page 7 of 57 CITY OF VERNON OPERATING ACCOUNT WARRANT REGISTER NO. 124 DATE 2/20/2024 VENDOR - 7213 - CRYSTAL LARIOS Invoice Description 122123 PAYMENT # 612205 1/11/2024 Line Item Amount 51.73 Account PO or Contract Invoice Total: Invoice Total: EXPENSE REIMBURSEMENT EXPENSE REIMBURSEMENT 011-010-100-529500 33.34 33.34 18.39 18.39 122123(2)011-010-100-529500 VENDOR - 620 - DEPT OF TOXIC SUBSTANCES CTRL PAYMENT # 612206 PO or Contract HD-0035 1/11/2024 6,911.95 3,960.00 Invoice Description Account Line Item Amount 23SM1999 FORMER THERMADOR CLEAN UP 011-020-200-529225 6,911.95 Invoice Total:6,911.95 VENDOR - 5229 - EHS INTERNATIONAL, INC PAYMENT # 612207 PO or Contract 20240213 1/11/2024 Invoice 320365 Description Account Line Item Amount TRAINING: BACKHOE / LOADER 011-040-415-529670 1,980.00 1,980.00 1,980.00 1,980.00 Invoice Total: 20240213320366TRAINING: BACKHOE / LOADER 011-040-430-529670 Invoice Total: VENDOR - 6696 - ELLIOTT AUTO SUPPLY CO, INC PAYMENT # 612208 PO or Contract 240012 1/11/2024 1,094.38 Invoice Description Account Line Item Amount 106543743 AUTO PARTS AUTO PARTS AUTO PARTS 011-040-420-522000 358.97 358.97 396.34 396.34 339.07 339.07 Invoice Total: 240012125714515 125716182 011-040-420-522000 011-040-420-522000 Invoice Total: 240012 Invoice Total: VENDOR - 7469 - ENVIRONMENTAL SCIENCE ASSOCIATES PAYMENT # 612209 PO or Contract HD-0052 1/11/2024 4,611.25 Invoice 191461 Description Account Line Item Amount 4,611.25SUSTAINABILITY ACTION PLAN 11/23 055-050-580-529215 Page 6 of 55 . . Item 4 Page 8 of 57 CITY OF VERNON OPERATING ACCOUNT WARRANT REGISTER NO. 124 DATE 2/20/2024 Invoice Total:4,611.25 VENDOR - 456 - GATEWAY CITIES COUNCIL OF GOVT PAYMENT # 612210 PO or Contract 1/11/2024 15,015.00 2,930.74 Invoice 122023 Description Account Line Item Amount MEMBERSHIP DUES FY 23/24 011-010-105-529550 15,015.00 Invoice Total:15,015.00 VENDOR - 6379 - GATEWAY SANTA FE INTERNATIONAL Invoice Description 010924 PAYMENT # 612211 PO or Contract 1/11/2024 Account Line Item Amount SPECIAL PARCEL TAX REFUND 6302-015- 011-400-000-400900 016 FY22-23 2,930.74 Invoice Total:2,930.74 VENDOR - 4035 - GTO AUTO GLASS PAYMENT # 612212 PO or Contract 240285 1/11/2024 80.00 537.15 Invoice Description WINDSHIELD REPAIR Account Line Item Amount WOI0511496 011-040-420-529000 80.00 Invoice Total:80.00 VENDOR - 2887 - HARRINGTON INDUSTRIAL PLASTICS, Invoice Description 1KA737 PARTS & SUPPLIES PAYMENT # 612213 PO or Contract 240236 1/11/2024 Account Line Item Amount 055-050-586-529000-537.15 Invoice Total:537.15 VENDOR - 3076 - HINDERLITER DELLAMAS & ASSOC PAYMENT # 612214 PO or Contract 1/11/2024 11.30 Invoice Description Account Line Item Amount SIN034212 SALES TAX AUDIT SERVICES 2023, Q2 011-010-130-529215 11.30 Invoice Total:11.30 VENDOR - 4239 - HSA BANK Invoice PAYMENT # 612215 PO or Contract 1/11/2024 123,250.00 Page 7 of 55 Description Account Line Item Amount 122123 122123 EMPLOYER CONTRIBUTION 01/01/24 EMPLOYER CONTRIBUTION 01/01/24 011-010-105-513030 011-010-110-513030 3,000.00 4,500.00 . . Item 4 Page 9 of 57 CITY OF VERNON OPERATING ACCOUNT WARRANT REGISTER NO. 124 DATE 2/20/2024 122123 122123 122123 122123 122123 122123 122123 122123 122123 122123 122123 122123 122123 122123 122123 122123 122123 122123 122123 EMPLOYER CONTRIBUTION 01/01/24 EMPLOYER CONTRIBUTION 01/01/24 EMPLOYER CONTRIBUTION 01/01/24 EMPLOYER CONTRIBUTION 01/01/24 EMPLOYER CONTRIBUTION 01/01/24 EMPLOYER CONTRIBUTION 01/01/24 EMPLOYER CONTRIBUTION 01/01/24 EMPLOYER CONTRIBUTION 01/01/24 EMPLOYER CONTRIBUTION 01/01/24 EMPLOYER CONTRIBUTION 01/01/24 EMPLOYER CONTRIBUTION 01/01/24 EMPLOYER CONTRIBUTION 01/01/24 EMPLOYER CONTRIBUTION 01/01/24 EMPLOYER CONTRIBUTION 01/01/24 EMPLOYER CONTRIBUTION 01/01/24 EMPLOYER CONTRIBUTION 01/01/24 EMPLOYER CONTRIBUTION 01/01/24 EMPLOYER CONTRIBUTION 01/01/24 EMPLOYER CONTRIBUTION 01/01/24 011-010-115-513030 011-010-120-513030 011-010-125-513030 011-010-130-513030 011-020-200-513030 011-030-300-513030 011-040-400-513030 011-040-405-513030 011-040-415-513030 011-040-420-513030 011-040-430-513030 055-050-555-513030 055-050-575-513030 055-050-580-513030 055-050-585-513030 055-050-586-513030- 055-050-590-513030 056-060-600-513030 058-070-700-513030 3,000.00 3,000.00 4,500.00 6,000.00 4,750.00 31,500.00 6,000.00 4,500.00 1,500.00 1,500.00 13,500.00 1,500.00 3,000.00 4,500.00 4,500.00 12,000.00 1,500.00 1,500.00 7,500.00 123,250.00Invoice Total: VENDOR - 6108 - IMPRESSIONS IN THREAD, INC.PAYMENT # 612216 PO or Contract 240228 1/11/2024 1,415.44 1,543.00 Invoice 8869 Description Account Line Item Amount UNIFORM SHIRTS / JACKETS 011-010-110-522010 1,415.44 Invoice Total:1,415.44 VENDOR - 3423 - INTELLIGENT TECHNOLOGIES &PAYMENT # 612217 PO or Contract 20240043 1/11/2024 Invoice 83045 Description Account Line Item Amount FIRE ALARM MAINTENANCE/SERVICE 011-040-415-529000 1,543.00 Invoice Total:1,543.00 VENDOR - 7737 - JESUS RIVERA PAYMENT # 612218 1/11/2024 214.62 Page 8 of 55 . . Item 4 Page 10 of 57 CITY OF VERNON OPERATING ACCOUNT WARRANT REGISTER NO. 124 DATE 2/20/2024 Invoice 010824 Description Account PO or Contract Line Item Amount 214.62REIMB. INTERNET CHARGES 05/23 - 10/23 059-450-800-450050 Invoice Total:214.62 VENDOR - 7522 - KEVIN OMAR LAINEZ Invoice Description 120723 PAYMENT # 612219 PO or Contract 1/11/2024 150.00 528.34 Account Line Item Amount SEWC ATTENDANCE STIPEND MEETING 12/07/23 095-095-905-705070-150.00 Invoice Total:150.00 VENDOR - 171 - L&M FOOTWEAR Invoice Description 55829IN PAYMENT # 612220 PO or Contract 240093 1/11/2024 Account Line Item Amount WORK BOOTS WORK BOOTS WORK BOOTS 011-040-430-522000 171.15 171.15 163.71 163.71 193.48 193.48 Invoice Total: 24009355833IN 58048IN 011-040-420-522000 011-040-430-522000 Invoice Total: 240093 Invoice Total: VENDOR - 5333 - LA COUNTY SHERIFF'S DEPT.PAYMENT # 612221 PO or Contract 1/11/2024 500.49 Invoice 10153 Description Account Line Item Amount Payroll Run 1 - Warrant 240111 011-000-000-210260 500.49 Invoice Total:500.49 VENDOR - 7730 - LENSLOCK INC Invoice Description 697233 PAYMENT # 612222 PO or Contract 20240245 1/11/2024 98,299.34 Account Line Item Amount BODY-WORN CAMERA LEASE 12/11/23- 12/10/24 011-010-110-529110 98,299.34 Invoice Total:98,299.34 VENDOR - 5863 - LETICIA LOPEZ Invoice Description PAYMENT # 612223 PO or Contract 1/11/2024 321.93 Account Line Item Amount Page 9 of 55 . . Item 4 Page 11 of 57 CITY OF VERNON OPERATING ACCOUNT WARRANT REGISTER NO. 124 DATE 2/20/2024 010824 REIMB. INTERNET CHARGES 03/23 - 11/23 059-450-800-450050 321.93 Invoice Total:321.93 VENDOR - 5442 - LILIA HERNANDEZ Invoice Description 122123 EXPENSE REIMBURSEMENT PAYMENT # 612224 PO or Contract 1/11/2024 33.26 Account Line Item Amount 011-010-105-529500 33.26 Invoice Total:33.26 VENDOR - 7450 - MARIA DEL PILAR AVALOS PAYMENT # 612225 PO or Contract 1/11/2024 150.00 Invoice 120723 Description Account Line Item Amount SEWC ATTENDANCE STIPEND MEETING 12/07/23 095-095-905-705070-150.00 Invoice Total:150.00 VENDOR - 309 - NAPA AUTO PARTS Invoice Description 214876 PAYMENT # 612226 PO or Contract 240014 1/11/2024 140.07 150.00 Account Line Item Amount AUTO PARTS 011-040-420-522000 140.07 Invoice Total:140.07 VENDOR - 7451 - OCTAVIO C. MARTINEZ Invoice Description 120723 PAYMENT # 612227 PO or Contract 1/11/2024 Account Line Item Amount SEWC ATTENDANCE STIPEND MEETING 12/07/23 095-095-905-705070-150.00 Invoice Total:150.00 VENDOR - 1943 - PLUMBING & INDUSTRIAL SUPPLY Invoice Description PAYMENT # 612228 PO or Contract 240056 1/11/2024 21.61 Account Line Item Amount S1289958001 PARTS & SUPPLIES 011-040-415-522000 21.61 Invoice Total:21.61 VENDOR - 7153 - PROFORMA PRINTING & PROMOTIONAL PAYMENT # 612229 PO or Contract 1/11/2024 2,353.96 Invoice Description Account Line Item Amount Page 10 of 55 . . Item 4 Page 12 of 57 CITY OF VERNON OPERATING ACCOUNT WARRANT REGISTER NO. 124 DATE 2/20/2024 B735002872A NOTICE TO APPEAR CITATION BOOKS 011-030-300-522000 240198 2,353.96 Invoice Total:2,353.96 VENDOR - 7656 - QUALITY PHYSICALS LLC PAYMENT # 612230 PO or Contract 20240068 1/11/2024 1,195.00 2,656.95 65.00 Invoice 33265 Description Account Line Item Amount DRUG & ALCOHOL COMPLIANCE 011-010-120-529700 1,195.00 Invoice Total:1,195.00 VENDOR - 1457 - QUINN COMPANY PAYMENT # 612231 PO or Contract 240291 1/11/2024 Invoice Description Account Line Item Amount PC810998785 SUPPLIES 011-040-420-522000 2,656.95 Invoice Total:2,656.95 VENDOR - 7410 - RICARDO HERNANDEZ PAYMENT # 612232 PO or Contract 20240143 1/11/2024 Invoice 43401 Description SMOG CHECK SERVICES Account Line Item Amount 011-040-420-529000 65.00 Invoice Total:65.00 VENDOR - 1158 - SOUTH COAST AQMD Invoice Description 120123 PAYMENT # 612233 PO or Contract 1/11/2024 3,048.00 Account Line Item Amount FIRE STATION VIOLATION (P78419, P78420) 011-040-415-529000 3,048.00 Invoice Total:3,048.00 VENDOR - 5563 - STANLEY STEEMER OF LA COUNTY, INC PAYMENT # 612234 PO or Contract 20240024 1/11/2024 855.95 Invoice 1006533 Description Account Line Item Amount CARPET CLEANING SERIVES 011-040-415-529000 855.95 Invoice Total:855.95 VENDOR - 7739 - STATE FARM A/S/O EVETTE Invoice Description PAYMENT # 612235 PO or Contract 1/11/2024 3,207.05 Account Line Item Amount Page 11 of 55 . . Item 4 Page 13 of 57 CITY OF VERNON OPERATING ACCOUNT WARRANT REGISTER NO. 124 DATE 2/20/2024 010824 PROPERTY DAMAGE SETTLEMENT - EVETTE H. CALDERON 011-030-300-520090 3,207.05 Invoice Total:3,207.05 VENDOR - 5419 - SUPERIOR CT OF CAL OF LA PAYMENT # 612236 PO or Contract 1/11/2024 1,734.00 20,000.00 150.00 Invoice 122923 Description Account Line Item Amount PARKING REVENUE DISTRIBUTION 11/23 011-030-300-529220 1,734.00 Invoice Total:1,734.00 VENDOR - 7643 - THE PUN GROUP, LLP Invoice Description 114259 PROFESSIONAL AUDITING SERVICES PAYMENT # 612237 PO or Contract 20230273 1/11/2024 Account Line Item Amount 011-010-130-529225 20,000.00 Invoice Total:20,000.00 VENDOR - 7473 - TODD ROGERS Invoice Description 120723 PAYMENT # 612238 PO or Contract 1/11/2024 Account Line Item Amount SEWC ATTENDANCE STIPEND MEETING 12/07/23 095-095-905-705070-150.00 Invoice Total:150.00 VENDOR - 282 - TRI-CITY MUTUAL WATER COMPANY Invoice Description 123123 HYDRANT ACCT 350.09 PAYMENT # 612239 PO or Contract 1/11/2024 225.00 Account Line Item Amount 011-030-305-526000 225.00 Invoice Total:225.00 VENDOR - 317 - WEST COAST ARBORISTS, INC Invoice Description 208216 PAYMENT # 612240 PO or Contract CS-1435 1/11/2024 27,900.00 Account Line Item Amount URBAN FOREST MANAGEMENT 11/16/23 - 011-040-430-529000 11/30/23 25,200.00 Invoice Total:25,200.00 209058 URBAN FOREST MANAGEMENT 12/01- 12/15/23 011-040-430-529000 CS-1435 2,700.00 Invoice Total:2,700.00 Page 12 of 55 . . Item 4 Page 14 of 57 CITY OF VERNON OPERATING ACCOUNT WARRANT REGISTER NO. 124 DATE 2/20/2024 VENDOR - 6372 - XPRESS WASH, INC Invoice Description 17894 CAR WASH SERVICES PAYMENT # 612242 1/11/2024 Line Item Amount 1,337.00 2,090.00 Account PO or Contract 20240053011-040-420-527000 1,337.00 Invoice Total:1,337.00 VENDOR - 6492 - PRODIGY MOVING & STORAGE, LLC PAYMENT # 612243 PO or Contract 20240252 1/16/2024 Invoice 011624 Description Account Line Item Amount MOVING SERVICES FOR REMODEL AT 3365 FRUITLAND 011-040-415-529215 2,090.00 Invoice Total:2,090.00 VENDOR - 4026 - AIRWAVE COMMUNICATIONS PAYMENT # 612244 PO or Contract 240290 1/18/2024 1,077.38 7,041.29 Invoice 20098 20098 Description Account Line Item Amount HORN INSTALL HORN INSTALL 011-040-420-522000 011-040-420-529000 567.38 510.00240290 Invoice Total:1,077.38 VENDOR - 1948 - AT&T Invoice PAYMENT # 612245 PO or Contract 20230186 1/18/2024 Description Account Line Item Amount 20944944 20944945 20944946 20944947 20944948 20945047 BAN 9391053026 PERIOD 11/10-12/9/23 BAN 9391053027 PERIOD 11/10-12/9/23 BAN 9391053028 PERIOD 11/10-12/9/23 BAN 9391053029 PERIOD 11/10-12/9/23 BAN 9391053030 PERIOD 11/10-12/9/23 BAN 9391055763 PERIOD 11/10-12/9/23 011-010-110-526010 60.00 60.00Invoice Total: 20230186055-050-580-526010 011-010-110-526010 011-010-110-526010 056-060-600-526010 056-060-600-526010 337.08 337.08 2,000.14 2,000.14 1,491.81 1,491.81 864.38 864.38 30.00 Invoice Total: 20230186 Invoice Total: 20230186 Invoice Total: 20230186 Invoice Total: 20230186 Invoice Total:30.00 Page 13 of 55 . . Item 4 Page 15 of 57 CITY OF VERNON OPERATING ACCOUNT WARRANT REGISTER NO. 124 DATE 2/20/2024 20945379 20981017 3764615800 BAN 9391060354 PERIOD 11/10-12/9/23 BAN 9391053440 PERIOD 11/15-12/14/23 011-010-110-526010 011-010-110-526010 011-010-110-526010 20230186 266.23 266.23 29.25 Invoice Total: 20230186 Invoice Total: 20230186 29.25 ACCT 8310009006723 PERIOD 11/19- 12/18/23 1,962.40 Invoice Total:1,962.40 VENDOR - 1948 - AT&T Invoice PAYMENT # 612246 PO or Contract 1/18/2024 152.00 Description Account Line Item Amount 2413204807 ACCT 831-000-0922 427 PERIOD 10/19/23- 11/18/23 055-050-590-526010 152.00 Invoice Total:152.00 VENDOR - 6054 - BEAR COMMUNICATIONS INC PAYMENT # 612247 PO or Contract PD-0186 1/18/2024 867.63 506.00 Invoice 5667421 Description Account Line Item Amount RADIO EQUIPMENT MAINTENANCE 01/24 011-030-300-529000 867.63 Invoice Total:867.63 VENDOR - 7708 - BLAINE TECH SERVICES, INC. Invoice Description PAYMENT # 612248 PO or Contract 20240187 1/18/2024 Account Line Item Amount 2BLJT231116M GROUNDWATER MONITORING SERVICES 058-070-700-529225 S1 506.00 Invoice Total:506.00 VENDOR - 446 - BURRO CANYON ENTERPRISE, INC.PAYMENT # 612249 PO or Contract 240062 1/18/2024 60.00 Invoice 3107 Description Account Line Item Amount SHOOTING RANGE FEES 011-030-300-529220 60.00 Invoice Total:60.00 VENDOR - 256 - CALPORTLAND COMPANY Invoice Description 96044898 PAYMENT # 612250 PO or Contract 20240059 1/18/2024 1,659.29 Account Line Item Amount 1,659.29CONCRETE058-070-700-529000 Page 14 of 55 . . Item 4 Page 16 of 57 CITY OF VERNON OPERATING ACCOUNT WARRANT REGISTER NO. 124 DATE 2/20/2024 Invoice Total:1,659.29 VENDOR - 4163 - CENTRAL FORD AUTOMOTIVE, INC. Invoice Description 38647 PAYMENT # 612251 PO or Contract 240016 1/18/2024 1,016.44 27,162.29 866.97 Account Line Item Amount AUTO PARTS 011-040-420-522000 1,016.44 Invoice Total:1,016.44 VENDOR - 4860 - CLEANSTREET, LLC PAYMENT # 612252 PO or Contract CS-1434 1/18/2024 Invoice Description STREET SWEEPING SERVICES 12/23 Account Line Item Amount 107795CS 011-040-430-529000 27,162.29 Invoice Total:27,162.29 VENDOR - 310 - CRAIG WELDING SUPPLY, CO Invoice Description 650167 WELDING SUPPLIES PAYMENT # 612253 PO or Contract 240040 1/18/2024 Account Line Item Amount 055-050-586-529003-45.04 45.04Invoice Total: 240040650199 650321 650459 SPECIALTY GASES CYLINDER RENTAL WELDING SUPPLIES 055-050-586-529003- 055-050-586-529003- 055-050-586-529003- 300.98 300.98 70.20 Invoice Total: 240040 Invoice Total: 240040 70.20 450.75 450.75Invoice Total: VENDOR - 1336 - CURRENT WHOLESALE ELECTRIC Invoice Description 281106 PARTS FOR PP2 WELL PAYMENT # 612254 PO or Contract 240024 1/18/2024 1,903.68 Account Line Item Amount 058-070-700-660000 590.69 590.69 35.28 Invoice Total: 240024281843 281844 281845 PARTS FOR PP2 WELL PARTS FOR PP2 WELL PARTS FOR PP2 WELL 058-070-700-660000 058-070-700-660000 058-070-700-660000 Invoice Total: 240024 35.28 551.71 551.71 726.00 Invoice Total: 240024 Page 15 of 55 . . Item 4 Page 17 of 57 CITY OF VERNON OPERATING ACCOUNT WARRANT REGISTER NO. 124 DATE 2/20/2024 Invoice Total:726.00 VENDOR - 6567 - DONALD C. LACHER PAYMENT # 612255 PO or Contract 20240126 1/18/2024 1,250.00 72.00 Invoice Description BACKGROUND INVESTIGATION Account Line Item Amount VPD24001 011-030-300-529215 1,250.00 Invoice Total:1,250.00 VENDOR - 7631 - EPLUS TECHNOLOGY, INC PAYMENT # 612256 PO or Contract 1/18/2024 Invoice Description Account Line Item Amount V2763212 E-WASTE FEES 011-010-110-522010 72.00 Invoice Total:72.00 VENDOR - 4035 - GTO AUTO GLASS PAYMENT # 612257 PO or Contract 240287 1/18/2024 514.65 2,640.75 Invoice Description WINDSHIELD REPLACEMENT Account Line Item Amount WOI0511613 011-040-420-522000 514.65 Invoice Total:514.65 VENDOR - 6308 - HI TECH ENTERPRISE Invoice Description 39393 39393 PAYMENT # 612258 PO or Contract 240294 1/18/2024 Account Line Item Amount AUTO REPAIRS 011-040-420-522000 011-040-420-529000 2,123.25 517.50AUTO REPAIRS 240294 Invoice Total:2,640.75 VENDOR - 829 - IRON MOUNTAIN, INC PAYMENT # 612259 PO or Contract 20240021 1/18/2024 441.24 Invoice Description OFFSITE BACKUP STORAGE Account Line Item Amount 202810219 011-010-110-526010 441.24 Invoice Total:441.24 VENDOR - 7345 - J. HARRIS INDUSTRIAL WATER Invoice Description 2122563 FINANCE CHARGE PAYMENT # 612260 PO or Contract 20240077 1/18/2024 9.50 Account Line Item Amount 055-050-586-520140-9.00 Invoice Total:9.00 Page 16 of 55 . . Item 4 Page 18 of 57 CITY OF VERNON OPERATING ACCOUNT WARRANT REGISTER NO. 124 DATE 2/20/2024 2130322 FINANCE CHARGE 055-050-586-520140-20240077 0.50 Invoice Total:0.50 VENDOR - 7355 - JOHN CRANE INC PAYMENT # 612261 PO or Contract 240209 1/18/2024 4,793.78 1,647.36 15.04 Invoice Description PARTS & MAINTENANCE Account Line Item Amount 24A038331 055-050-586-529000-4,793.78 Invoice Total:4,793.78 VENDOR - 7738 - LA SPEC INC. Invoice PAYMENT # 612262 PO or Contract 1/18/2024 Description Account Line Item Amount 010324 CUSTOMER INCENTIVE PROGRAM 055-050-595-529702 1,647.36 Invoice Total:1,647.36 VENDOR - 3272 - LANGUAGE LINE SERVICES, INC PAYMENT # 612263 PO or Contract 20230162 1/18/2024 Invoice 11189323 Description Account Line Item Amount LANGUAGE LINE SERVICES 12/23 011-030-300-529220 15.04 Invoice Total:15.04 VENDOR - 138 - LOS ANGELES COUNTY POLICE CHIEFS'PAYMENT # 612264 PO or Contract 1/18/2024 300.00 Invoice 011724 Description Account Line Item Amount TRI-COUNTY CONFERENCE REGISTRATION FEE 011-030-300-529670 300.00 Invoice Total:300.00 VENDOR - 2316 - MITECH CONTROLS Invoice Description 69931 PAYMENT # 612265 PO or Contract 240081 1/18/2024 9,950.10 Account Line Item Amount PARTS & MAINTENANCE PARTS & MAINTENANCE 055-050-586-529008-7,192.20 7,192.20 2,757.90 2,757.90 Invoice Total: 24008169932055-050-586-529008- Invoice Total: VENDOR - 7745 - MORRIS LATHAM PAYMENT # 612266 1/18/2024 63.00 Page 17 of 55 . . Item 4 Page 19 of 57 CITY OF VERNON OPERATING ACCOUNT WARRANT REGISTER NO. 124 DATE 2/20/2024 Invoice 120423 Description Account PO or Contract Line Item Amount REFUND FOR DISMISSED PARKING CITATION 011-030-300-529220 63.00 Invoice Total:63.00 VENDOR - 309 - NAPA AUTO PARTS Invoice Description 215943 PAYMENT # 612267 PO or Contract 240014 1/18/2024 Line Item Amount 417.42 Account AUTO PARTS AUTO PARTS 011-040-420-522000 192.63 192.63 224.79 224.79 Invoice Total: 240014215996011-040-420-522000 Invoice Total: VENDOR - 1943 - PLUMBING & INDUSTRIAL SUPPLY Invoice Description PAYMENT # 612268 PO or Contract 240056 1/18/2024 665.61 Account Line Item Amount S1290516001 PARTS & SUPPLIES 011-040-415-522000 94.51 94.51Invoice Total: 240056S1290738001 PARTS & SUPPLIES 011-040-415-522000 571.10 571.10Invoice Total: VENDOR - 470 - POSITIVE LAB SERVICE PAYMENT # 612269 PO or Contract 20240041 1/18/2024 797.44 Invoice B23K081 Description SAMPLING SERVICES Account Line Item Amount 055-050-586-520232-797.44 Invoice Total:797.44 VENDOR - 7252 - PURE PROCESS FILTRATION, INC Invoice Description 87070 FILTER SUPPLIES PAYMENT # 612270 PO or Contract 240082 1/18/2024 15,339.63 Account Line Item Amount 055-050-586-529003-7,811.76 7,811.76 7,527.87 7,527.87 Invoice Total: 24023587412FILTER SUPPLIES 055-050-586-529003- Invoice Total: VENDOR - 1457 - QUINN COMPANY PAYMENT # 612271 1/18/2024 142.70 Page 18 of 55 . . Item 4 Page 20 of 57 CITY OF VERNON OPERATING ACCOUNT WARRANT REGISTER NO. 124 DATE 2/20/2024 Invoice Description Account PO or Contract Line Item Amount 142.70PC810998896 FREIGHT CHARGES 011-040-420-529000 240298 Invoice Total:142.70 VENDOR - 3908 - RAFAEL A. LOPEZ PAYMENT # 612272 PO or Contract 240013 1/18/2024 883.00 Invoice 9112 9112 Description Account Line Item Amount NEW TIRES NEW TIRES 011-040-420-522000 011-040-420-529000 876.00 7.00240013 Invoice Total:883.00 VENDOR - 3725 - RICHARD D JONES, A PROFESSIONAL Invoice Description 119926 LEGAL SERVICES PAYMENT # 612273 PO or Contract 20240239 1/18/2024 711.49 800.00 Account Line Item Amount 011-010-115-529200 711.49 Invoice Total:711.49 VENDOR - 5998 - SOUTHEAST POLICE CHIEFS GROUP PAYMENT # 612274 PO or Contract 1/18/2024 Invoice 011724 Description Account Line Item Amount SOUTHEAST POLICE CHIEFS' DUES 011-030-300-529550 800.00 Invoice Total:800.00 VENDOR - 7743 - STONEX FINANCIAL INC.PAYMENT # 612275 PO or Contract 20240255 1/18/2024 5,000.00 Invoice 1242102 Description Account Line Item Amount ENERGY RISK MANAGEMENT SERVICES 11/07/23-11/30/23 055-050-580-529215 5,000.00 Invoice Total:5,000.00 VENDOR - 7743 - STONEX FINANCIAL INC.PAYMENT # 612276 PO or Contract 20240255 1/18/2024 5,000.00 Invoice 1264154 Description Account Line Item Amount ENERGY RISK MANAGEMENT SERVICES 12/23 055-050-580-529215 5,000.00 Invoice Total:5,000.00 Page 19 of 55 . . Item 4 Page 21 of 57 CITY OF VERNON OPERATING ACCOUNT WARRANT REGISTER NO. 124 DATE 2/20/2024 VENDOR - 2358 - TETRA TECH, INC Invoice Description 52185995 PAYMENT # 612277 1/18/2024 Line Item Amount 2,797.38 8,617.71 Account PO or Contract ANNUAL VAPOR MONITORING AND SAMPLING 011-020-200-529225 HD-0045 2,797.38 Invoice Total:2,797.38 VENDOR - 6997 - TRINITY CONSULTANTS, INC PAYMENT # 612278 PO or Contract 20230057 1/18/2024 Invoice 1424338 Description Account Line Item Amount CONSULTING SERVICES PROJECT NO. 220509.0028 011-020-200-529225 106.25 Invoice Total:106.25 1424339 1424376 1424401 1424410 CONSULTING SERVICES PROJECT NO. 220509.0029 011-020-200-529225 011-020-200-529225 011-020-200-529225 011-020-200-529225 20230057 112.50 Invoice Total:112.50 CONSULTING SERVICES PROJECT NO. 230509.0125 20230057 118.75 Invoice Total:118.75 CONSULTING SERVICES PROJECT NO. 230509.0190 20230057 157.50 Invoice Total:157.50 CONSULTING SERVICES PROJECT NO. 230509.0199 20230057 8,122.71 Invoice Total:8,122.71 VENDOR - 7276 - UNIVERSAL BUILDING MAINTENANCE,PAYMENT # 612279 PO or Contract CS-1414 1/18/2024 11,167.37 1,266.77 Invoice 14817388 Description Account Line Item Amount JANITORIAL SERVICES 10/23 011-040-415-529000 11,167.37 Invoice Total:11,167.37 VENDOR - 7679 - USIQ, INC Invoice PAYMENT # 612280 PO or Contract 240156 1/18/2024 Description Account Line Item Amount 257317931 NIGHT VISION CAMERA 011-030-300-522000 1,266.77 Invoice Total:1,266.77 Page 20 of 55 . . Item 4 Page 22 of 57 CITY OF VERNON OPERATING ACCOUNT WARRANT REGISTER NO. 124 DATE 2/20/2024 VENDOR - 1481 - VERIZON WIRELESS PAYMENT # 612281 1/18/2024 Line Item Amount 118.08 731.76 Invoice Description ACCT SV311478 PERIOD THRU 11/30/23 Account PO or Contract 2023008472784841011-010-110-526010 118.08 Invoice Total:118.08 VENDOR - 1481 - VERIZON WIRELESS Invoice Description 72785857 PAYMENT # 612282 PO or Contract 20230084 1/18/2024 Account Line Item Amount ACCT SV646197 PERIOD THROUGH 11/30/23 011-010-110-526010 731.76 Invoice Total:731.76 VENDOR - 317 - WEST COAST ARBORISTS, INC PAYMENT # 612283 PO or Contract CS-1435 1/18/2024 3,000.00 2,656.34 Invoice 209351 Description Account Line Item Amount URBAN FOREST MANAGEMENT 12/16 - 12/31/23 011-040-430-529000 3,000.00 Invoice Total:3,000.00 VENDOR - 141 - WEST PUBLISHING CORPORATION PAYMENT # 612284 PO or Contract PD-0178 1/18/2024 Invoice Description Account Line Item Amount 849366163 DATABASE SUBSCRIPTION 11/23 011-010-110-529110 1,328.17 1,328.17 1,328.17 1,328.17 Invoice Total: PD-0178849522278DATABASE SUBSCRIPTION 12/23 011-010-110-529110 Invoice Total: VENDOR - 2308 - WORLD OIL ENVIRONMENTAL SERVICES Invoice Description PAYMENT # 612285 PO or Contract 20240132 1/18/2024 1,660.55 Account Line Item Amount I50001006495 ENVIRONMENTAL SERVICES 055-050-586-526000-1,660.55 Invoice Total:1,660.55 PAYROLL CHECKS 1/11/2024 6,220.20 Invoice Description Account PO or Contract Line Item Amount 011124 PAYROLL CHECKS 011-000-000-210110 3,401.99 Page 21 of 55 . . Item 4 Page 23 of 57 CITY OF VERNON OPERATING ACCOUNT WARRANT REGISTER NO. 124 DATE 2/20/2024 011124 PAYROLL CHECKS 056-000-000-210110 2,818.21 Invoice Total:6,220.20 Page 22 of 55 . . Item 4 Page 24 of 57 CITY OF VERNON OPERATING ACCOUNT WARRANT REGISTER NO. 124 DATE 2/20/2024 ELECTRONIC TOTAL:11,029,802.74 2,761.63VENDOR - 7519 - BURCKHARDT COMPRESSION (US) INC PAYMENT # 16425 1/5/2024 Line Item Amount 95.00 Invoice SI087137 Description GAS COMPRESSOR PARTS GAS COMPRESSOR PARTS GAS COMPRESSOR PARTS GAS COMPRESSOR PARTS Account PO or Contract 240207055-050-586-529000- 055-050-586-529000- 055-050-586-529000- 055-050-586-529000- SI087137 SI087137 SI087137 240207 957.07 240207 1,667.12 240207 42.44 Invoice Total:2,761.63 VENDOR - 2143 - CITY OF PASADENA Invoice Description 30023385 NOVEMBER 2023 PAYMENT # 16426 PO or Contract 1/5/2024 Line Item Amount 3,175.00 3,175.00 240.00 Account 055-050-590-520160 Invoice Total:3,175.00 VENDOR - 947 - DAILY JOURNAL CORPORATION PAYMENT # 16427 PO or Contract 1/5/2024 Invoice Description Account Line Item Amount 155.00B3763221PUBLICATION SERVICES 011-010-125-529300 Invoice Total: Invoice Total: 155.00 B3763964 PUBLICATION SERVICES 011-010-125-525000 85.00 85.00 VENDOR - 2947 - FARWEST CORROSION CONTROL CO.PAYMENT # 16428 PO or Contract 20240172 1/5/2024 Line Item Amount 2,142.00 2,142.00 6,572.13 Invoice 25669IN Description Account GAS PIPILINE AUDIT SUPPORT 056-060-600-529000 Invoice Total:2,142.00 VENDOR - 524 - FERGUSON WATERWORKS PAYMENT # 16429 PO or Contract 240193 1/5/2024 Line Item Amount 6,572.13 Invoice 18105 Description Account MISCELLANEOUS PARTS 058-070-700-529000 Invoice Total:6,572.13 Page 23 of 55 . . Item 4 Page 25 of 57 CITY OF VERNON OPERATING ACCOUNT WARRANT REGISTER NO. 124 DATE 2/20/2024 VENDOR - 1712 - GRAINGER, CO PAYMENT # 16430 1/5/2024 Line Item Amount 467.45 Invoice Description Account PO or Contract 2400719858981088PARTS & SUPPLIES 056-060-600-522000 274.43 274.43 193.02 193.02 Invoice Total: 2400359901118290SAFETY SUPPLIES 055-050-586-520231- Invoice Total: VENDOR - 2517 - SCPPA Invoice PAYMENT # 16431 PO or Contract 1/5/2024 19,888.61 Description Account Line Item Amount 1223 1223 1223 1223 1223 RESOLUTION BILLING RESOLUTION BILLING 055-050-590-529215 055-050-580-529550 055-050-580-529215 055-050-595-529702 055-050-580-529670 5,105.43 6,250.00 5,450.00 2,500.00 583.18 RESOLUTION BILLING RESOLUTION BILLING RESOLUTION BILLING Invoice Total:19,888.61 VENDOR - 289 - VIET NGUYEN Invoice PAYMENT # 16432 PO or Contract 1/5/2024 218.00 Description Account Line Item Amount 122723 IEEE MEMBERSHIP REIMBURSEMENT 055-050-585-529550 218.00 Invoice Total:218.00 VENDOR - 3584 - WILLIAMS SERVICE CORPORATION PAYMENT # 16433 PO or Contract 1/5/2024 2,109.61 Invoice 635099 Description Account Line Item Amount STORAGE SERVICES 01/24 011-010-125-529215 409.00 409.00Invoice Total: Invoice Total: 635537 STORAGE SERVICES 01/24 011-010-125-529215 1,700.61 1,700.61 VENDOR - 7591 - EYEMED Invoice PAYMENT # 16477 PO or Contract 1/8/2024 3,854.21 Description Account Line Item Amount 2,595.12BEN246572DECEMBER 2023 VISION INSURANCE PAYMENT 011-000-000-210230 Page 24 of 55 . . Item 4 Page 26 of 57 CITY OF VERNON OPERATING ACCOUNT WARRANT REGISTER NO. 124 DATE 2/20/2024 BEN246572 BEN246572 BEN246572 BEN246572 BEN246572 BEN246572 DECEMBER 2023 VISION INSURANCE PAYMENT DECEMBER 2023 VISION INSURANCE PAYMENT DECEMBER 2023 VISION INSURANCE PAYMENT DECEMBER 2023 VISION INSURANCE PAYMENT DECEMBER 2023 VISION INSURANCE PAYMENT DECEMBER 2023 VISION INSURANCE PAYMENT 058-000-000-210230 055-000-000-210230 056-000-000-210230 059-000-000-210230 011-010-130-523034 011-010-120-513035 232.65 896.41 83.26 1.50 (1.09) 46.36 Invoice Total:3,854.21 VENDOR - 2412 - CALIFORNIA ISO PAYMENT # 16481 PO or Contract 1/5/2024 820,750.35 Invoice Description Account Line Item Amount 2024010231624 REVISED CHARGES 09/23 055-050-590-520150 (108.14) 98987 2024010231624 REVISED CHARGES 09/23 98987 2024010231624 REVISED CHARGES 09/23 98987 2024010231624 INITIAL CHARGES 12/23 98987 2024010231624 INITIAL CHARGES 12/23 98987 2024010231624 INITIAL CHARGES 12/23 98987 2024010231624 INITIAL CHARGES 12/23 98987 055-050-590-520170 055-050-590-520190 055-050-590-520170 055-050-590-520190 055-050-590-520210 055-050-590-520150 (174.53) (87.74) (691.85) 3,542.12 6,535.28 811,735.21 820,750.35Invoice Total: VENDOR - 1928 - ADVANCED UTILITY SYSTEMS PAYMENT # 16484 PO or Contract 20240230 1/12/2024 52,700.55 Invoice Description Account Line Item Amount 52,700.55MN00139736CIS SUPPORT & MAINTENANCE 07/01/23 - 055-050-575-529210 06/30/24 Page 25 of 55 . . Item 4 Page 27 of 57 CITY OF VERNON OPERATING ACCOUNT WARRANT REGISTER NO. 124 DATE 2/20/2024 Invoice Total:52,700.55 1/12/2024VENDOR - 6890 - ALLIANT INSURANCE SERVICES, INC PAYMENT # 16485 PO or Contract HR-0032 18,500.01 24,205.00 Invoice 2537485 Description Account Line Item Amount HEALTH BENEFITS CONSULTING SERVICES 1Q, 2024 011-010-120-529220 18,500.01 Invoice Total:18,500.01 VENDOR - 7723 - ATLAS COPCO USA HOLDINGS, INC PAYMENT # 16486 PO or Contract 20240247 1/12/2024 Invoice Description Account Line Item Amount 913087403 NITROGEN GENERATOR DOWN PAYMENT 055-050-586-660000-24,205.00 Invoice Total:24,205.00 VENDOR - 7026 - BEAR ELECTRICAL SOLUTIONS, INC PAYMENT # 16487 PO or Contract CS-1303 1/12/2024 3,696.00 7,500.00 Invoice 21281 Description Account Line Item Amount TRAFFIC SIGNAL MAINTENANCE 12/23 011-040-430-529000 3,696.00 Invoice Total:3,696.00 VENDOR - 1479 - BLOOMBERG FINANCE, LP PAYMENT # 16488 PO or Contract 20230190 1/12/2024 Invoice Description Account Line Item Amount 5607925756 BLOOMBERG SUBSCRIPTION 12/28/23 - 03/27/24 011-010-130-529225 7,500.00 Invoice Total:7,500.00 VENDOR - 447 - CDW GOVERNMENT, INC Invoice Description NK38810 SSD DRIVES FOR IT PAYMENT # 16489 PO or Contract 240252 1/12/2024 1,294.56 Account Line Item Amount 011-010-110-522010 1,294.56 Invoice Total:1,294.56 VENDOR - 1401 - CENTRAL BASIN MWD PAYMENT # 16490 PO or Contract 1/12/2024 25,967.03 Invoice Description POTABLE WATER CHARGES 11/23 Account Line Item Amount 8,064.02VERNOV23058-070-700-520130 Page 26 of 55 . . Item 4 Page 28 of 57 CITY OF VERNON OPERATING ACCOUNT WARRANT REGISTER NO. 124 DATE 2/20/2024 VERNOV23 POTABLE WATER CHARGES 11/23 055-050-586-520135-17,903.01 Invoice Total:25,967.03 VENDOR - 5490 - CINTAS CORPORATION NO. 2 PAYMENT # 16491 PO or Contract LP-0663 1/12/2024 2,456.79 Invoice 4174227664 4174227664 4174227664 4174227664 4174227664 Description UNIFORM RENTAL SERVICE UNIFORM RENTAL SERVICE UNIFORM RENTAL SERVICE UNIFORM RENTAL SERVICE UNIFORM RENTAL SERVICE Account Line Item Amount 055-050-586-524000- 056-060-600-524000 058-070-700-524000 055-050-550-524000 055-050-555-524000 288.05 96.49LP-0663 LP-0663 214.51 15.36LP-0663 LP-0663 204.52 818.93 288.05 96.49 Invoice Total: LP-06634175669363 4175669363 4175669363 4175669363 4175669363 UNIFORM RENTAL SERVICE UNIFORM RENTAL SERVICE UNIFORM RENTAL SERVICE UNIFORM RENTAL SERVICE UNIFORM RENTAL SERVICE 055-050-586-524000- 056-060-600-524000 058-070-700-524000 055-050-550-524000 055-050-555-524000 LP-0663 LP-0663 214.51 15.36LP-0663 LP-0663 204.52 818.93 288.05 96.49 Invoice Total: LP-06634176365020 4176365020 4176365020 4176365020 4176365020 UNIFORM RENTAL SERVICE UNIFORM RENTAL SERVICE UNIFORM RENTAL SERVICE UNIFORM RENTAL SERVICE UNIFORM RENTAL SERVICE 055-050-586-524000- 056-060-600-524000 058-070-700-524000 055-050-550-524000 055-050-555-524000 LP-0663 LP-0663 214.51 15.36LP-0663 LP-0663 204.52 818.93Invoice Total: VENDOR - 1444 - COUNTY OF LOS ANGELES PAYMENT # 16492 PO or Contract 1/12/2024 1,392,739.45 Invoice Description Account Line Item Amount C0011770 FIRE PROTECTION SERVICES 02/2024 011-030-305-529215 1,392,739.45 Invoice Total:1,392,739.45 VENDOR - 6191 - DATA TICKET, INC Invoice Description 159065 PARKING CITATION PROCESSING 11/23 PAYMENT # 16493 PO or Contract PD-0180 1/12/2024 434.81 Account Line Item Amount 434.81011-030-300-529220 Page 27 of 55 . . Item 4 Page 29 of 57 CITY OF VERNON OPERATING ACCOUNT WARRANT REGISTER NO. 124 DATE 2/20/2024 Invoice Total:434.81 VENDOR - 1936 - EMPIRE CHEMICAL CO., INC PAYMENT # 16494 PO or Contract 240245 1/12/2024 3,184.87 Invoice Description Account Line Item Amount S6144065001 TRASH LINERS 011-040-435-522000 3,127.75 3,127.75 57.12 Invoice Total: 240245S6144065003 TRASH LINERS 011-040-435-522000 Invoice Total:57.12 VENDOR - 524 - FERGUSON WATERWORKS Invoice Description 181051 PARTS & SUPPLIES PAYMENT # 16495 PO or Contract 240193 1/12/2024 1,358.82 336.75 Account Line Item Amount 058-070-700-529000 1,358.82 Invoice Total:1,358.82 VENDOR - 4438 - FLEMING ENVIRONMENTAL, INC PAYMENT # 16496 PO or Contract CS-1377 1/12/2024 Invoice 20763 Description Account Line Item Amount ENVIRONMENTAL SERVICES 011-040-415-529000 336.75 Invoice Total:336.75 VENDOR - 1712 - GRAINGER, CO PAYMENT # 16497 PO or Contract 240117 1/12/2024 199.88 Invoice Description PARTS & SUPPLIES Account Line Item Amount 9956777172 011-040-415-522000 199.88 Invoice Total:199.88 VENDOR - 5108 - JEMMOTT ROLLINS GROUP, INC PAYMENT # 16498 PO or Contract 20240111 1/12/2024 5,500.00 Invoice DEC23 Description Account Line Item Amount COMMUNITY FUND ADMINISTRATION SERVICES 12/23 011-010-140-529215 5,500.00 Invoice Total:5,500.00 VENDOR - 804 - LB JOHNSON INDUSTRIAL HARDWARE Invoice Description PAYMENT # 16499 PO or Contract 1/12/2024 57.26 Account Line Item Amount Page 28 of 55 . . Item 4 Page 30 of 57 CITY OF VERNON OPERATING ACCOUNT WARRANT REGISTER NO. 124 DATE 2/20/2024 129801 PARTS & SUPPLIES 058-070-700-529000 240043 57.26 Invoice Total:57.26 VENDOR - 6422 - MARIPOSA LANDSCAPES, INC PAYMENT # 16500 PO or Contract CS-1413 1/12/2024 4,709.00 700.48 Invoice 105374 Description Account Line Item Amount GROUNDS MAINTENANCE 11/23 011-040-415-529000 4,709.00 Invoice Total:4,709.00 VENDOR - 6520 - MATHESON TRI-GAS, INC Invoice Description 28900028 SPECIALTY GASES PAYMENT # 16501 PO or Contract LP-0790 1/12/2024 Account Line Item Amount 055-050-586-529000-235.98 235.98 464.50 464.50 Invoice Total: LP-0790771095947SPECIALTY GASES 055-050-586-529000- Invoice Total: VENDOR - 4856 - MELISSA YBARRA Invoice Description 010824 PAYMENT # 16502 PO or Contract 1/12/2024 507.70 Account Line Item Amount REIMB. INTERNET CHARGES 02/23 - 11/23 059-450-800-450050 357.70 Invoice Total: Invoice Total: 357.70 120723 SEWC ATTENDANCE STIPEND MEETING 12/07/23 095-095-905-705070-150.00 150.00 VENDOR - 209 - MERRIMAC PETROLEUM, INC. Invoice Description 2228515 PAYMENT # 16503 PO or Contract 240130 1/12/2024 32,014.45 Account Line Item Amount FUEL 011-000-000-120030 32,014.45 Invoice Total:32,014.45 VENDOR - 6222 - MICRO MOTION, INC Invoice Description 40766540 FLOW METER SENSOR & TRANSMITTER PAYMENT # 16504 PO or Contract 240226 1/12/2024 14,932.61 Account Line Item Amount 14,932.61058-070-700-660000 Page 29 of 55 . . Item 4 Page 31 of 57 CITY OF VERNON OPERATING ACCOUNT WARRANT REGISTER NO. 124 DATE 2/20/2024 Invoice Total:14,932.61 1/12/2024VENDOR - 7286 - MONTROSE ENVIRONMENTAL GROUP,PAYMENT # 16505 PO or Contract 20240200 7,592.00 208.00 Invoice Description Account Line Item Amount CINV233581 AMMONIA NH3 SLIP TEST 11/30 055-050-586-520232-7,592.00 Invoice Total:7,592.00 VENDOR - 6884 - RELX, INC Invoice PAYMENT # 16506 PO or Contract LD-0045 1/12/2024 Description Account Line Item Amount 3094895580 SUBSCRIPTION DUES 12/23 011-010-115-529600 208.00 Invoice Total:208.00 VENDOR - 7512 - RUDY HERNANDEZ Invoice Description 122723 TRAINING: DUI SEMINARS PAYMENT # 16507 PO or Contract 1/12/2024 220.12 Account Line Item Amount 011-030-300-529500 220.12 Invoice Total:220.12 VENDOR - 6198 - S&S LABOR FORCE, INC PAYMENT # 16508 PO or Contract 20230234 1/12/2024 13,056.00 Invoice 11072 Description Account Line Item Amount SECURITY SERVICES (CITY HALL EXTRA PATROL) 10/23 011-040-415-529215 13,056.00 Invoice Total:13,056.00 VENDOR - 7419 - SPECTRUM BUSINESS PAYMENT # 16509 PO or Contract 1/12/2024 1,050.00 Invoice Description Account Line Item Amount 1186113011201 FIBER INTERNET SERVICE 12/23 23 011-010-110-526010 1,050.00 Invoice Total:1,050.00 VENDOR - 1447 - TYLER TECHNOLOGIES, INC PAYMENT # 16510 PO or Contract IT-0152 1/12/2024 7,800.00 Invoice 45442865 Description Account Line Item Amount 1,400.00TYLER TECHNOLOGIES ERP SYSTEM 011-010-110-660005 Page 30 of 55 . . Item 4 Page 32 of 57 CITY OF VERNON OPERATING ACCOUNT WARRANT REGISTER NO. 124 DATE 2/20/2024 Invoice Total:1,400.00 5,000.00 5,000.00 1,400.00 1,400.00 45443192 45443768 TYLER TECHNOLOGIES ERP SYSTEM TYLER TECHNOLOGIES ERP SYSTEM 011-010-110-660005 011-010-110-660005 IT-0152 Invoice Total: IT-0152 Invoice Total: VENDOR - 3601 - UNITED SITE SERVICES OF CALIFORNIA,PAYMENT # 16511 PO or Contract 20240174 1/12/2024 352.80 Invoice Description Account Line Item Amount 11413757345 PORTABLE RESTROOM 12/07/23 - 12/08/23 011-040-415-529000 352.80 Invoice Total:352.80 VENDOR - 7343 - USIPCOMMUNICATION, LLC PAYMENT # 16512 PO or Contract 20240045 1/12/2024 5,395.72 5,650.00 Invoice IN210002 Description Account Line Item Amount INTERNET SERVICE PROVIDER 059-080-800-520173 5,395.72 Invoice Total:5,395.72 VENDOR - 7489 - WEA CA PC Invoice PAYMENT # 16513 PO or Contract HD-0054 1/12/2024 Description Account Line Item Amount INV0093 HEALTH OFFICER SERVICES 12/23 011-020-200-529230-5,650.00 Invoice Total:5,650.00 VENDOR - 2412 - CALIFORNIA ISO PAYMENT # 16518 PO or Contract 1/12/2024 730,213.01 Invoice Description Account Line Item Amount 2024010931- 62599337 2024010931- 62599337 2024010931- 62599337 2024010931- 62599337 REVISED CHARGES 01/23 REVISED CHARGES 01/23 REVISED CHARGES 01/23 REVISED CHARGES 01/23 REVISED CHARGES 09/23 055-050-590-520150 (8,328.29) (339.68) 3,016.55 25.85 055-050-590-520180 055-050-590-520170 055-050-590-520190 055-050-590-5201502024010931- 62599337 (129.27) Page 31 of 55 . . Item 4 Page 33 of 57 CITY OF VERNON OPERATING ACCOUNT WARRANT REGISTER NO. 124 DATE 2/20/2024 2024010931- 62599337 2024010931- 62599337 2024010931- 62599337 2024010931- 62599337 2024010931- 62599337 2024010931- 62599337 2024010931- 62599337 2024010931- 62599337 REVISED CHARGES 09/23 REVISED CHARGES 09/23 REVISED CHARGES 03/22 REVISED CHARGES 03/22 REVISED CHARGES 03/22 REVISED CHARGES 03/22 INITIAL CHARGES 12/23 INITIAL CHARGES 12/23 INITIAL CHARGES 12/23 INITIAL CHARGES 12/23 055-050-590-520190 055-050-590-520170 055-050-590-520190 055-050-590-520180 055-050-590-520150 055-050-590-520170 055-050-590-520170 055-050-590-520190 055-050-590-520210 055-050-590-520150 (215.70) 85.75 (67.75) (4.58) 384.56 1,850.83 (2,036.73) 3,780.05 7,945.21 724,246.21 730,213.01 2024010931- 62599337 2024010931- 62599337 Invoice Total: VENDOR - 1490 - ALL CITY MANAGEMENT SERVICES, INC.PAYMENT # 16519 PO or Contract 20240119 1/19/2024 4,042.08 Invoice 89136 Description Account Line Item Amount CROSSING GUARD SERVICES 10/29- 11/11/23 011-010-160-529215 2,598.48 Invoice Total:2,598.48 89473 CROSSING GUARD SERVICES 11/12- 11/25/23 011-010-160-529215 20240119 1,443.60 Invoice Total:1,443.60 VENDOR - 2533 - BANK OF NEW YORK MELLON TRUST PAYMENT # 16520 PO or Contract 1/19/2024 2,250.00 Invoice Description Account Line Item Amount 2522598658 TRUSTEE & DISSEMINATION AGENT FEES 055-050-580-529010 ACCT TXN2125767 2,250.00 Invoice Total:2,250.00 Page 32 of 55 . . Item 4 Page 34 of 57 CITY OF VERNON OPERATING ACCOUNT WARRANT REGISTER NO. 124 DATE 2/20/2024 VENDOR - 7026 - BEAR ELECTRICAL SOLUTIONS, INC PAYMENT # 16521 1/19/2024 Line Item Amount 15,122.14 9,058.39 Invoice 21280 Description Account PO or Contract CS-1303TRAFFIC SIGNAL MAINTENANCE 12/23 011-040-430-529000 15,122.14 Invoice Total:15,122.14 VENDOR - 447 - CDW GOVERNMENT, INC Invoice Description NH00448 PAYMENT # 16522 PO or Contract 240252 1/19/2024 Account Line Item Amount IT EQUIPMENT IT EQUIPMENT 011-010-110-522010 2,297.21 2,297.21 875.10 875.10 3,242.34 3,242.34 10.00 Invoice Total: 240252NJ04749 NN30659 011-010-110-522010 011-010-110-522010 Invoice Total: 240263CISCO SFP MODULES Invoice Total: 240273NS17675 NS17675 MONITORS MONITORS 011-010-110-522010 011-010-110-522010 240273 916.88 926.88 5.00 Invoice Total: 240273NS47444 NS47444 LAPTOP LAPTOP 011-010-110-522010 011-010-110-522010 240273 1,711.86 1,716.86Invoice Total: VENDOR - 1917 - CENTRAL BASIN WATER ASSOCATION PAYMENT # 16523 PO or Contract 1/19/2024 11,747.81 Invoice Description Account Line Item Amount 12230004 TITLE 22 MONITORING THRU DECEMBER 31, 2023 058-070-700-529225 8,142.35 Invoice Total: Invoice Total: 8,142.35 3,605.46 3,605.46 9230004 TITLE 22 MONITORING THRU 09/30/23 058-070-700-529225 VENDOR - 956 - CROSSPOINT NETWORK SOLUTIONS, INC.PAYMENT # 16524 PO or Contract 230366 1/19/2024 1,400.00 Invoice Description Account Line Item Amount 1,400.00IN2024010CALL RECORDING UPDATE 011-010-110-529110 Page 33 of 55 . . Item 4 Page 35 of 57 CITY OF VERNON OPERATING ACCOUNT WARRANT REGISTER NO. 124 DATE 2/20/2024 Invoice Total:1,400.00 VENDOR - 1206 - DELL MARKETING LP PAYMENT # 16525 PO or Contract 240276 1/19/2024 15,725.13 2,836.57 Invoice Description Account Line Item Amount 10722625783 10722625783 LAPTOPS LAPTOPS 011-010-110-522010 011-010-110-522010 75.00 15,650.13 15,725.13 240276 Invoice Total: VENDOR - 1712 - GRAINGER, CO PAYMENT # 16526 PO or Contract 240114 1/19/2024 Invoice Description Account Line Item Amount 9904835908 PARTS & SUPPLIES PARTS & SUPPLIES PARTS & SUPPLIES PARTS & SUPPLIES PARTS & SUPPLIES 055-050-555-522000 29.52 29.52Invoice Total: 2401149905353364 9906141834 9907345988 9908142509 055-050-555-522000 055-050-555-522000 055-050-555-522000 055-050-555-522000 333.39 333.39 653.91 653.91 29.35 Invoice Total: 240114 Invoice Total: 240114 Invoice Total: 240114 29.35 1,790.40 1,790.40Invoice Total: VENDOR - 5350 - HAUL-AWAY RUBBISH SERVICE CO., INC PAYMENT # 16527 PO or Contract CS-1371 1/19/2024 22,500.76 Invoice Description WASTE DISPOSAL Account Line Item Amount 3BX00113 011-040-430-529215 12,994.80 12,994.80 9,505.96 9,505.96 Invoice Total: CS-13713CX00118WASTE DISPOSAL 011-040-430-529215 Invoice Total: VENDOR - 4500 - ICE US OTC COMMODITY MARKETS, LLC Invoice Description 1223001688006 DECEMBER 2023 PAYMENT # 16528 PO or Contract 1/19/2024 1,250.00 Account Line Item Amount 055-050-590-529215 53.75 Page 34 of 55 . . Item 4 Page 36 of 57 CITY OF VERNON OPERATING ACCOUNT WARRANT REGISTER NO. 124 DATE 2/20/2024 Invoice Total:53.75 1223001688088 DECEMBER 2023 055-050-590-529215 1,196.25 Invoice Total:1,196.25 VENDOR - 6886 - JACOBS ENGINEERING GROUP, INC PAYMENT # 16529 PO or Contract 20240020 1/19/2024 9,010.75 Invoice Description Account Line Item Amount D3775700005 PROFESSIONAL SERVICES THRU 11/24/23 055-050-580-529225 D3775700005 PROFESSIONAL SERVICES THRU 11/24/23 058-070-700-529225 D3775700005 PROFESSIONAL SERVICES THRU 11/24/23 055-050-586-529235- D3775700005 PROFESSIONAL SERVICES THRU 11/24/23 055-050-560-529215 429.75 2,231.00 6,110.00 240.00 20240020 20240020 20240020 Invoice Total:9,010.75 VENDOR - 5093 - JCL TRAFFIC SERVICES PAYMENT # 16530 PO or Contract 240054 1/19/2024 6,975.82 Invoice 120466 Description Account Line Item Amount SIGN SUPPLIES SIGN SUPPLIES SIGN SUPPLIES SIGN SUPPLIES SIGN SUPPLIES 011-040-430-522000 67.14 67.14Invoice Total: 240054120741 121111 121112 121795 121826 122515 122516 011-040-430-522000 011-040-430-522000 011-040-430-522000 011-040-430-522000 011-040-430-522000 011-040-430-522000 011-040-430-522000 2,348.42 2,348.42 1,168.65 1,168.65 267.91 Invoice Total: 240054 Invoice Total: 240054 Invoice Total: 240054 267.91 548.49 Invoice Total: 240054 548.49 PAINT FOR STREETS CURBS SIGN SUPPLIES 1,761.24 1,761.24 106.94 Invoice Total: 240054 Invoice Total: 240054 106.94 TRAFFIC CONTROL SUPPLIES 707.03 Page 35 of 55 . . Item 4 Page 37 of 57 CITY OF VERNON OPERATING ACCOUNT WARRANT REGISTER NO. 124 DATE 2/20/2024 Invoice Total:707.03 VENDOR - 2361 - LITTLEJOHN REULAND CORP PAYMENT # 16531 PO or Contract 240218 1/19/2024 2,143.94 2,911.82 Invoice 64657 Description Account Line Item Amount PARTS & MAINTENANCE 055-050-586-529000-2,143.94 Invoice Total:2,143.94 VENDOR - 6520 - MATHESON TRI-GAS, INC Invoice Description 28900015 SPECIALTY GASES PAYMENT # 16532 PO or Contract LP-0790 1/19/2024 Account Line Item Amount 055-050-586-529000-657.16 657.16 818.19 818.19 363.83 363.83 654.68 654.68 417.96 417.96 Invoice Total: LP-079028935889 28945627 28949036 28963115 SPECIALTY GASES SPECIALTY GASES SPECIALTY GASES SPECIALTY GASES 055-050-586-529000- 055-050-586-529000- 055-050-586-529000- 055-050-586-529000- Invoice Total: LP-0790 Invoice Total: LP-0790 Invoice Total: LP-0790 Invoice Total: VENDOR - 1150 - MCMASTER-CARR SUPPLY COMPANY Invoice Description 17931323 PARTS & SUPPLIES PAYMENT # 16533 PO or Contract 240126 1/19/2024 114.53 Account Line Item Amount 055-050-586-529000-114.53 Invoice Total:114.53 VENDOR - 6722 - MUNISERVICES, LLC PAYMENT # 16534 PO or Contract FI-0042 1/19/2024 36,958.50 Invoice Description SUTA SERVICES FOR 2023 Q2 Account Line Item Amount INV06017794 011-010-130-529215 36,958.50 Invoice Total:36,958.50 VENDOR - 6687 - NEXTDAY DELIVERY SERVICE, LLC Invoice Description PAYMENT # 16535 PO or Contract 1/19/2024 309.12 Account Line Item Amount Page 36 of 55 . . Item 4 Page 38 of 57 CITY OF VERNON OPERATING ACCOUNT WARRANT REGISTER NO. 124 DATE 2/20/2024 829092 POSTAGE FEES 011-010-130-522000 FI-0041 309.12 Invoice Total:309.12 VENDOR - 6314 - NRG POWER MARKETING, LLC Invoice Description PAYMENT # 16536 PO or Contract 1/19/2024 166,950.00 Account Line Item Amount PPW01202429 DECEMEBER 2023 7489 055-050-590-520180 166,950.00 Invoice Total:166,950.00 VENDOR - 870 - PARNASA TOV INC PAYMENT # 16537 PO or Contract 240063 1/19/2024 24.00 Invoice 1294 Description CAR WASHES SERVICES Account Line Item Amount 011-030-300-527000 24.00 Invoice Total:24.00 VENDOR - 1649 - PETROLEUM INDUSTRY CONSULTANTS,PAYMENT # 16538 PO or Contract HD-0043 1/19/2024 15,950.00 Invoice 16165 Description Account Line Item Amount ENVIRONMENTAL REMEDIATION SERVICES 011-020-200-529225 15,950.00 Invoice Total:15,950.00 VENDOR - 6198 - S&S LABOR FORCE, INC PAYMENT # 16539 PO or Contract 20230234 1/19/2024 48,988.00 Invoice 11529 Description Account Line Item Amount SECURITY SERVICES 11/23 011-040-415-529215 11,492.00 11,492.00 13,440.00 Invoice Total: 2023023411536SECURITY SERVICES (CITY HALL EXTRA PATROL) 11/23 011-040-415-529215 Invoice Total: 20230234 13,440.00 9,464.00 9,464.00 14,592.00 11900 11902 SECURITY SERVICES (CITY HALL) 12/23 011-040-415-529215 011-040-415-529215 Invoice Total: 20230234SECURITY SERVICES (CITY HALL EXTRA PATROL) 12/23 Invoice Total:14,592.00 Page 37 of 55 . . Item 4 Page 39 of 57 CITY OF VERNON OPERATING ACCOUNT WARRANT REGISTER NO. 124 DATE 2/20/2024 VENDOR - 2517 - SCPPA Invoice PAYMENT # 16540 1/19/2024 Line Item Amount 41,835.24 374,964.19 228,529.41 132,505.27 355,846.35 Description Description Account PO or Contract DH0124 JANUARY 2024 055-050-590-520154 41,835.24 Invoice Total:41,835.24 VENDOR - 2517 - SCPPA Invoice PAYMENT # 16541 PO or Contract 1/19/2024 Account Line Item Amount ATSP0124 ASTORIA PROJECT 01/24 055-050-590-520154 374,964.19 Invoice Total:374,964.19 VENDOR - 2517 - SCPPA Invoice PAYMENT # 16542 PO or Contract 1/19/2024 Description Description Account Line Item Amount DSR10124 JANUARY 2024 055-050-590-520154 228,529.41 Invoice Total:228,529.41 VENDOR - 2517 - SCPPA Invoice PAYMENT # 16543 PO or Contract 1/19/2024 Account Line Item Amount PHL0124 JANUARY 2024 055-050-590-520154 132,505.27 Invoice Total:132,505.27 VENDOR - 2517 - SCPPA Invoice PAYMENT # 16544 PO or Contract 1/19/2024 Description Account Line Item Amount DS20124 DS20124 JANUARY 2024 ENERGY 055-050-590-520154 055-050-590-520180 117,662.15 238,184.20 355,846.35 JANUARY 2024 BATTERY CAPACITY Invoice Total: VENDOR - 5423 - SOLARWINDS, INC Invoice Description IN624007 DAMEWARE SOFTWARE RENEWAL PAYMENT # 16545 PO or Contract 240277 1/19/2024 504.00 Account Line Item Amount 011-010-110-529110 504.00 Invoice Total:504.00 VENDOR - 3775 - STAPLEMAN MEDIA SERVICES, INC.PAYMENT # 16546 1/19/2024 821.91 Page 38 of 55 . . Item 4 Page 40 of 57 CITY OF VERNON OPERATING ACCOUNT WARRANT REGISTER NO. 124 DATE 2/20/2024 Invoice 27659 Description Account PO or Contract Line Item Amount 120.17BUSINESS CARDS FOR CARLA LOPEZ 011-020-200-522000 240269 Invoice Total: 240270 120.17 701.74 701.74 27661 WINDOW ENVELOPES 011-010-130-522000 Invoice Total: VENDOR - 2227 - US DEPARTMENT OF ENERGY Invoice Description PAYMENT # 16547 PO or Contract 1/19/2024 49,355.18 Account Line Item Amount GG1766W1223 DECEMBER CAPACITY 055-050-590-520180 33,180.97 16,174.21 49,355.18 GG1766W1223 NOVEMBER ENERGY 055-050-590-520150 Invoice Total: VENDOR - 289 - VIET NGUYEN PAYMENT # 16548 PO or Contract 1/19/2024 497.30 34,535.46 4,666.48 Invoice 123123 Description EXPENSE REIMBURSEMENT Account Line Item Amount 055-050-585-529500 497.30 Invoice Total:497.30 VENDOR - 7489 - WEA CA PC Invoice PAYMENT # 16549 PO or Contract 20240109 1/19/2024 Description Account Line Item Amount INV0086 PUBLIC HEALTH SERVICES 01/24 011-020-200-529230-34,535.46 Invoice Total:34,535.46 VENDOR - 743 - XEROX CORPORATION Invoice Description 5117450 PAYMENT # 16550 PO or Contract IT-0141 1/19/2024 Account Line Item Amount MANAGED PRINT SERVICES 11/23 MANAGED PRINT SERVICES 12/23 011-010-110-529110 2,333.24 2,333.24 2,333.24 2,333.24 Invoice Total: IT-01415141825011-010-110-529110 Invoice Total: VENDOR - 3049 - PETRELLI ELECTRIC, INC PAYMENT # 16558 1/18/2024 1,703,573.24 Page 39 of 55 . . Item 4 Page 41 of 57 CITY OF VERNON OPERATING ACCOUNT WARRANT REGISTER NO. 124 DATE 2/20/2024 Invoice 230299 Description Account PO or Contract Line Item Amount 1,703,573.24ELECTRIC MAINTENANCE SERVICES 12/23 055-000-000-200400 LP-0761-1 Invoice Total:1,703,573.24 VENDOR - 2412 - CALIFORNIA ISO PAYMENT # 16559 PO or Contract 1/19/2024 33,435.11 Invoice Description Account Line Item Amount 2023122131623 01/01/2024 - 12/31/2024 99649 055-050-590-520150 33,435.11 Invoice Total:33,435.11 VENDOR - 2412 - CALIFORNIA ISO PAYMENT # 16560 PO or Contract 1/19/2024 1,692,672.12 Invoice Description Account Line Item Amount 2024011631626 INITIAL CHARGES 01/24 055-050-590-520170 (2,921.07) 75111 2024011631626 INITIAL CHARGES 01/24 75111 2024011631626 INITIAL CHARGES 01/24 75111 2024011631626 INITIAL CHARGES 01/24 75111 2024011631626 INITIAL CHARGES 12/23 75111 2024011631626 INITIAL CHARGES 12/23 75111 2024011631626 INITIAL CHARGES 12/23 75111 2024011631626 INITIAL CHARGES 12/23 75111 2024011631626 INITIAL CHARGES 12/23 75111 055-050-590-520190 055-050-590-520210 055-050-590-520150 055-050-590-520180 055-050-590-520190 055-050-590-520210 055-050-590-520240 055-050-590-520150 055-050-590-520170 1,851.83 3,270.55 251,375.72 (1,012.00) 1,705.96 5,248.48 8,343.85 336,794.56 1,088,014.24 1,692,672.12 2024011631626 INITIAL CHARGES 12/23 75111 Invoice Total: VENDOR - 2517 - SCPPA PAYMENT # 16561 1/19/2024 300,901.00 Page 40 of 55 . . Item 4 Page 42 of 57 CITY OF VERNON OPERATING ACCOUNT WARRANT REGISTER NO. 124 DATE 2/20/2024 Invoice PV0124 Description JANUARY 2024 CAPACITY DECEMBER 2023 ENERGY PROJECT STABILIZATION FUND Account PO or Contract Line Item Amount 236,153.00055-050-590-520180 055-050-590-520150 055-000-000-122100 PV0124 PV0124 54,748.00 10,000.00 300,901.00Invoice Total: VENDOR - 714 - CALPERS Invoice PAYMENT # 16606 PO or Contract 1/2/2024 91.58 520.50 Description Account Line Item Amount 1000000173701 MONTHLY EXPENSE OF UAL 39 (PROSECUTOR CLASSIC) 011-010-115-512020 91.58 Invoice Total:91.58 VENDOR - 714 - CALPERS Invoice PAYMENT # 16607 PO or Contract 1/2/2024 Description Account Line Item Amount 1000000173703 MONTHLY EXPENSE OF UAL (POLICE 19 PEPRA) 011-030-300-512020 520.50 Invoice Total:520.50 VENDOR - 714 - CALPERS Invoice PAYMENT # 16608 PO or Contract 1/2/2024 919.50 Description Account Line Item Amount 1000000173703 MONTHLY EXPENSE OF UAL (FIRE PEPRA) 011-030-305-512020 12 919.50 Invoice Total:919.50 VENDOR - 714 - CALPERS PAYMENT # 16609 PO or Contract 1/2/2024 248,987.08 Invoice 1000000173703 MONTHLY EXPENSE OF UAL (POLICE 03 CLASSIC) Description Account Line Item Amount 011-030-300-512020 248,987.08 Invoice Total:248,987.08 VENDOR - 714 - CALPERS Invoice PAYMENT # 16610 PO or Contract 1/2/2024 382,646.92 Description Account Line Item Amount Page 41 of 55 . . Item 4 Page 43 of 57 CITY OF VERNON OPERATING ACCOUNT WARRANT REGISTER NO. 124 DATE 2/20/2024 1000000173703 MONTHLY EXPENSE OF UAL (FIRE 29 CLASSIC) 011-030-305-512020 382,646.92 Invoice Total:382,646.92 VENDOR - 714 - CALPERS Invoice PAYMENT # 16611 PO or Contract 1/2/2024 396,325.00 Description Account Line Item Amount 1000000173702 MONTHLY EXPENSE OF UAL (MISC PREPA 011-010-100-512020 93 & CLASSIC) 1000000173702 MONTHLY EXPENSE OF UAL (MISC PREPA 011-010-105-512020 93 & CLASSIC) 1000000173702 MONTHLY EXPENSE OF UAL (MISC PREPA 011-010-125-512020 93 & CLASSIC) 1000000173702 MONTHLY EXPENSE OF UAL (MISC PREPA 011-010-130-512020 93 & CLASSIC) 1000000173702 MONTHLY EXPENSE OF UAL (MISC PREPA 011-010-115-512020 93 & CLASSIC) 1000000173702 MONTHLY EXPENSE OF UAL (MISC PREPA 011-010-120-512020 93 & CLASSIC) 1000000173702 MONTHLY EXPENSE OF UAL (MISC PREPA 011-030-300-512020 93 & CLASSIC) 1000000173702 MONTHLY EXPENSE OF UAL (MISC PREPA 011-040-400-512020 93 & CLASSIC) 1000000173702 MONTHLY EXPENSE OF UAL (MISC PREPA 011-040-405-512020 93 & CLASSIC) 1000000173702 MONTHLY EXPENSE OF UAL (MISC PREPA 011-040-430-512020 93 & CLASSIC) 1000000173702 MONTHLY EXPENSE OF UAL (MISC PREPA 011-040-420-512020 93 & CLASSIC) 1000000173702 MONTHLY EXPENSE OF UAL (MISC PREPA 011-040-435-512020 93 & CLASSIC) 1000000173702 MONTHLY EXPENSE OF UAL (MISC PREPA 011-040-410-512020 93 & CLASSIC) 1000000173702 MONTHLY EXPENSE OF UAL (MISC PREPA 011-040-415-512020 93 & CLASSIC) 1000000173702 MONTHLY EXPENSE OF UAL (MISC PREPA 059-080-800-512020 93 & CLASSIC) 1,743.83 17,081.61 7,728.34 26,751.94 4,359.58 12,325.71 20,925.96 15,020.72 12,325.71 30,794.45 7,054.59 792.65 4,438.84 6,222.30 198.16 Page 42 of 55 . . Item 4 Page 44 of 57 CITY OF VERNON OPERATING ACCOUNT WARRANT REGISTER NO. 124 DATE 2/20/2024 1000000173702 MONTHLY EXPENSE OF UAL (MISC PREPA 011-020-200-512020 93 & CLASSIC) 1000000173702 MONTHLY EXPENSE OF UAL (MISC PREPA 058-070-700-512020 93 & CLASSIC) 1000000173702 MONTHLY EXPENSE OF UAL (MISC PREPA 056-060-600-512020 93 & CLASSIC) 1000000173702 MONTHLY EXPENSE OF UAL (MISC PREPA 055-050-575-512020 93 & CLASSIC) 1000000173702 MONTHLY EXPENSE OF UAL (MISC PREPA 055-050-595-512020 93 & CLASSIC) 1000000173702 MONTHLY EXPENSE OF UAL (MISC PREPA 055-050-550-512020 93 & CLASSIC) 1000000173702 MONTHLY EXPENSE OF UAL (MISC PREPA 055-050-555-512020 93 & CLASSIC) 1000000173702 MONTHLY EXPENSE OF UAL (MISC PREPA 055-050-570-512020 93 & CLASSIC) 1000000173702 MONTHLY EXPENSE OF UAL (MISC PREPA 055-050-580-512020 93 & CLASSIC) 1000000173702 MONTHLY EXPENSE OF UAL (MISC PREPA 055-050-585-512020 93 & CLASSIC) 1000000173702 MONTHLY EXPENSE OF UAL (MISC PREPA 055-050-586-512020- 93 & CLASSIC) 1000000173702 MONTHLY EXPENSE OF UAL (MISC PREPA 055-050-590-512020 93 & CLASSIC) 1000000173702 MONTHLY EXPENSE OF UAL (MISC PREPA 011-010-110-512020 93 & CLASSIC) 1000000173702 MONTHLY EXPENSE OF UAL (MISC PREPA 011-010-110-512020 93 & CLASSIC) 15,853.00 27,227.53 13,356.15 6,658.26 4,478.47 5,588.18 30,160.33 1,228.61 22,669.77 19,895.52 51,522.25 16,883.45 13,038.09 1.00 Invoice Total:396,325.00 VENDOR - 59 - SO CAL EDISON Invoice PAYMENT # 16612 PO or Contract 1/12/2024 8.50 Description Account Line Item Amount 112823 SERVICE ACCT 89452 10/26/23 - 11/27/23 055-050-555-526000 8.50 Invoice Total:8.50 VENDOR - 778 - CALIFORNIA WATER SERVICE CO PAYMENT # 16613 1/12/2024 56.06 Page 43 of 55 . . Item 4 Page 45 of 57 CITY OF VERNON OPERATING ACCOUNT WARRANT REGISTER NO. 124 DATE 2/20/2024 Invoice 122623 Description Account PO or Contract Line Item Amount ACCT 8369059794 PERIOD 11/22-12/21/23 011-040-430-526000 56.06 Invoice Total:56.06 VENDOR - 778 - CALIFORNIA WATER SERVICE CO PAYMENT # 16614 PO or Contract 1/12/2024 Line Item Amount 73.32 Invoice Description Account 122623(2)ACCT 06863577777 PERIOD 11/22-12/21/23 011-040-430-526000 73.32 Invoice Total:73.32 VENDOR - 59 - SO CAL EDISON Invoice PAYMENT # 16615 PO or Contract 1/12/2024 31.77 86.76 Description Account Line Item Amount 122823 SERVICE ACCT 89452 11/28/23 - 12/27/23 055-050-555-526000 31.77 Invoice Total:31.77 VENDOR - 59 - SO CAL EDISON Invoice PAYMENT # 16616 PO or Contract 1/12/2024 Description Account Line Item Amount 112823(2)SERVICE ACCT 61280 PERIOD 10/26/23 - 11/27/23 011-040-430-526000 86.76 Invoice Total:86.76 VENDOR - 59 - SO CAL EDISON Invoice PAYMENT # 16617 PO or Contract 1/12/2024 78.28 Description Account Line Item Amount 122823(2)SERVICE ACCT 61280 PERIOD 10/26/23 - 11/27/23 011-040-430-526000 78.28 Invoice Total:78.28 VENDOR - 59 - SO CAL EDISON Invoice PAYMENT # 16618 PO or Contract 1/12/2024 169.42 Description Account Line Item Amount 120523 SERVICE ACCT 13951 PERIOD 10/12/23 - 11/12/23 011-040-415-526000 169.42 Invoice Total:169.42 Page 44 of 55 . . Item 4 Page 46 of 57 CITY OF VERNON OPERATING ACCOUNT WARRANT REGISTER NO. 124 DATE 2/20/2024 VENDOR - 59 - SO CAL EDISON Invoice PAYMENT # 16619 1/12/2024 Line Item Amount 556.68 556.68 576.90 576.92 17.65 Description Account PO or Contract 120123 SERVICE ACCT 26234 PERIOD 11/23 055-050-590-526010 556.68 Invoice Total:556.68 VENDOR - 59 - SO CAL EDISON Invoice PAYMENT # 16620 PO or Contract 1/12/2024 Description Account Line Item Amount 010224 SERVICE ACCT 26234 PERIOD 12/23 055-050-590-526010 556.68 Invoice Total:556.68 VENDOR - 59 - SO CAL EDISON Invoice PAYMENT # 16621 PO or Contract 1/12/2024 Description Account Line Item Amount 120123(1)SERVICE ACCT 48624 PERIOD 11/23 011-040-430-526000 576.90 Invoice Total:576.90 VENDOR - 59 - SO CAL EDISON Invoice PAYMENT # 16622 PO or Contract 1/12/2024 Description Account Line Item Amount 010224(2)SERVICE ACCT 48624 PERIOD 12/23 011-040-430-526000 576.92 Invoice Total:576.92 VENDOR - 1581 - THE GAS COMPANY Invoice Description 121123 PAYMENT # 16623 PO or Contract 1/16/2024 Account Line Item Amount ACCT 02840008003 PERIOD 11/08 - 12/08/23 011-030-305-526000 17.65 Invoice Total:17.65 VENDOR - 1581 - THE GAS COMPANY Invoice Description 011124 PAYMENT # 16624 PO or Contract 1/16/2024 20.47 Account Line Item Amount ACCT 02840008003 PERIOD 12/09/23 - 01/09/24 011-030-305-526000 20.47 Invoice Total:20.47 Page 45 of 55 . . Item 4 Page 47 of 57 CITY OF VERNON OPERATING ACCOUNT WARRANT REGISTER NO. 124 DATE 2/20/2024 VENDOR - 1581 - THE GAS COMPANY PAYMENT # 16625 1/16/2024 Line Item Amount 42.23 46.97 Invoice Description Account PO or Contract Invoice Total: 121123(2)ACCT 12710008009 PERIOD 11/08 - 12/08/23 011-040-415-526000 42.23 42.23 VENDOR - 1581 - THE GAS COMPANY PAYMENT # 16626 PO or Contract 1/16/2024 Invoice Description Account Line Item Amount 011124(2)ACCT 12710008009 PERIOD 12/09/23 - 01/09/24 011-040-415-526000 46.97 Invoice Total:46.97 VENDOR - 1581 - THE GAS COMPANY Invoice Description 121223 PAYMENT # 16627 PO or Contract 1/16/2024 45.09 Account Line Item Amount ACCT 10220033335 PERIOD 11/09 - 12/09/23 056-060-600-526000 45.09 Invoice Total:45.09 VENDOR - 1581 - THE GAS COMPANY Invoice Description 011224 PAYMENT # 16628 PO or Contract 1/16/2024 140.40 Account Line Item Amount ACCT 10220033335 PERIOD 12/09/23 - 01/10/24 056-060-600-526000 140.40 Invoice Total:140.40 VENDOR - 1617 - UPS Invoice PAYMENT # 16629 PO or Contract 1/16/2024 32.90 30.00 Description Description Account Line Item Amount 933312523(2) PERIOD 12/30 011-040-405-522000 32.90 Invoice Total:32.90 VENDOR - 1617 - UPS Invoice PAYMENT # 16630 PO or Contract 1/16/2024 Account Line Item Amount 933312513(2) PERIOD 12/23 011-040-405-522000 30.00 Invoice Total:30.00 Page 46 of 55 . . Item 4 Page 48 of 57 CITY OF VERNON OPERATING ACCOUNT WARRANT REGISTER NO. 124 DATE 2/20/2024 VENDOR - 1617 - UPS Invoice PAYMENT # 16631 1/16/2024 Line Item Amount 30.00 30.00 30.00 34.50 107.93 8.63 Description Description Description Description Account PO or Contract 933312493(2) PERIOD 12/23 011-040-405-522000 30.00 Invoice Total:30.00 VENDOR - 1617 - UPS Invoice PAYMENT # 16632 PO or Contract 1/16/2024 Account Line Item Amount 933312483(2) PERIOD 11/23 011-040-405-522000 30.00 Invoice Total:30.00 VENDOR - 1617 - UPS Invoice PAYMENT # 16633 PO or Contract 1/16/2024 Account Line Item Amount 933312473(2) PERIOD 11/23 011-040-405-522000 30.00 Invoice Total:30.00 VENDOR - 1617 - UPS Invoice PAYMENT # 16634 PO or Contract 1/16/2024 Account Line Item Amount 933312014(2) PERIOD 01/24 011-040-405-522000 34.50 Invoice Total:34.50 VENDOR - 249 - FEDERAL EXPRESS CORPORATION PAYMENT # 16635 PO or Contract 1/16/2024 Invoice Description Account Line Item Amount 834142157 PERIOD 12/23 055-050-580-522000 107.93 Invoice Total:107.93 VENDOR - 249 - FEDERAL EXPRESS CORPORATION PAYMENT # 16637 PO or Contract 1/16/2024 Invoice Description Account Line Item Amount 966648241 PERIOD 01/24 011-010-130-522000 8.63 Invoice Total:8.63 VENDOR - 249 - FEDERAL EXPRESS CORPORATION PAYMENT # 16638 1/16/2024 80.79 Page 47 of 55 . . Item 4 Page 49 of 57 CITY OF VERNON OPERATING ACCOUNT WARRANT REGISTER NO. 124 DATE 2/20/2024 Invoice Description Account PO or Contract Line Item Amount 834838736 PERIOD 12/23 055-050-580-522000 80.79 Invoice Total:80.79 VENDOR - 1552 - HOME DEPOT CREDIT SERVICES Invoice Description PAYMENT # 16639 PO or Contract 1/16/2024 Line Item Amount 13,577.39 Account 011624_MULTI PARTS & SUPPLIES PLE 011624_MULTI PARTS & SUPPLIES PLE 011-040-415-522000 24012920240035 4,028.65 9,548.74 13,577.39 011-040-430-522000 24012920240035 Invoice Total: VENDOR - 2190 - OFFICE DEPOT PAYMENT # 16640 PO or Contract 1/17/2024 244.84 99.09 29.76 14.32 Invoice Description Account Line Item Amount 339125167001 OFFICE SUPPLIES 011-010-110-522000 244.84 Invoice Total:244.84 VENDOR - 2190 - OFFICE DEPOT PAYMENT # 16641 PO or Contract 1/17/2024 Invoice Description Account Line Item Amount 343419607001 OFFICE SUPPLIES 011-010-110-522000 99.09 Invoice Total:99.09 VENDOR - 2190 - OFFICE DEPOT PAYMENT # 16642 PO or Contract 1/17/2024 Invoice Description Account Line Item Amount 343424585001 OFFICE SUPPLIES 011-010-110-522000 29.76 Invoice Total:29.76 VENDOR - 2190 - OFFICE DEPOT PAYMENT # 16643 PO or Contract 1/17/2024 Invoice Description Account Line Item Amount 344663236001 OFFICE SUPPLIES 011-010-110-522000 14.32 Invoice Total:14.32 Page 48 of 55 . . Item 4 Page 50 of 57 CITY OF VERNON OPERATING ACCOUNT WARRANT REGISTER NO. 124 DATE 2/20/2024 VENDOR - 2190 - OFFICE DEPOT PAYMENT # 16644 1/17/2024 Line Item Amount 196.92 41.23 27.52 78.13 163.56 29.76 Invoice Description Account PO or Contract 332881259001 OFFICE SUPPLIES 011-010-110-522000 196.92 Invoice Total:196.92 VENDOR - 2190 - OFFICE DEPOT PAYMENT # 16645 PO or Contract 1/17/2024 Invoice Description Account Line Item Amount 335750683002 OFFICE SUPPLIES 011-010-125-522000 41.23 Invoice Total:41.23 VENDOR - 2190 - OFFICE DEPOT PAYMENT # 16646 PO or Contract 1/17/2024 Invoice Description Account Line Item Amount 335750683001 OFFICE SUPPLIES 011-010-125-522000 27.52 Invoice Total:27.52 VENDOR - 2190 - OFFICE DEPOT PAYMENT # 16647 PO or Contract 1/17/2024 Invoice Description Account Line Item Amount 341903922001 OFFICE SUPPLIES 011-010-130-522000 78.13 Invoice Total:78.13 VENDOR - 2190 - OFFICE DEPOT PAYMENT # 16648 PO or Contract 1/17/2024 Invoice Description Account Line Item Amount 337045422001 OFFICE SUPPLIES 011-020-200-522000 163.56 Invoice Total:163.56 VENDOR - 2190 - OFFICE DEPOT PAYMENT # 16649 PO or Contract 1/17/2024 Invoice Description Account Line Item Amount 345060789001 OFFICE SUPPLIES 011-010-120-522000 29.76 Invoice Total:29.76 VENDOR - 2190 - OFFICE DEPOT PAYMENT # 16650 PO or Contract 1/17/2024 23.14 Invoice Description Account Line Item Amount Page 49 of 55 . . Item 4 Page 51 of 57 CITY OF VERNON OPERATING ACCOUNT WARRANT REGISTER NO. 124 DATE 2/20/2024 345060792001 OFFICE SUPPLIES 011-010-120-522000 23.14 Invoice Total:23.14 VENDOR - 2190 - OFFICE DEPOT PAYMENT # 16651 PO or Contract 1/17/2024 171.96 19.02 349.02 5.76 Invoice Description Account Line Item Amount 345028557001 OFFICE SUPPLIES 011-010-120-522000 171.96 Invoice Total:171.96 VENDOR - 2190 - OFFICE DEPOT PAYMENT # 16652 PO or Contract 1/17/2024 Invoice Description Account Line Item Amount 327197183001 OFFICE SUPPLIES 011-030-300-522000 19.02 Invoice Total:19.02 VENDOR - 2190 - OFFICE DEPOT PAYMENT # 16653 PO or Contract 1/17/2024 Invoice Description Account Line Item Amount 336649910001 OFFICE SUPPLIES 011-030-300-522000 349.02 Invoice Total:349.02 VENDOR - 2190 - OFFICE DEPOT PAYMENT # 16654 PO or Contract 1/17/2024 Invoice Description Account Line Item Amount 336922617001 OFFICE SUPPLIES 011-030-300-522000 5.76 Invoice Total:5.76 VENDOR - 2190 - OFFICE DEPOT PAYMENT # 16655 PO or Contract 1/17/2024 140.03 Invoice Description Account Line Item Amount 341790643001 OFFICE SUPPLIES 011-030-300-522000 140.03 Invoice Total:140.03 VENDOR - 2190 - OFFICE DEPOT PAYMENT # 16656 PO or Contract 1/17/2024 348.02 Invoice Description Account Line Item Amount 346217967001 OFFICE SUPPLIES 011-030-300-522000 348.02 Invoice Total:348.02 Page 50 of 55 . . Item 4 Page 52 of 57 CITY OF VERNON OPERATING ACCOUNT WARRANT REGISTER NO. 124 DATE 2/20/2024 VENDOR - 2190 - OFFICE DEPOT PAYMENT # 16657 1/17/2024 Line Item Amount 28.10 11.57 Invoice Description Account PO or Contract 346717620001 OFFICE SUPPLIES 011-030-300-522000 28.10 Invoice Total:28.10 VENDOR - 2190 - OFFICE DEPOT PAYMENT # 16658 PO or Contract 1/16/2024 Invoice Description Account Line Item Amount 332182447001 OFFICE SUPPLIES 011-040-430-522000 11.57 Invoice Total:11.57 VENDOR - 2190 - OFFICE DEPOT PAYMENT # 16659 PO or Contract 1/17/2024 265.26 Invoice Description Account Line Item Amount 332177805001 OFFICE SUPPLIES 332177805001 OFFICE SUPPLIES 332177805001 OFFICE SUPPLIES 011-040-400-522000 011-040-405-522000 011-040-430-522000 100.88 123.74 40.64 Invoice Total:265.26 VENDOR - 714 - CALPERS PAYMENT # 16660 PO or Contract 1/17/2024 145,295.64 Invoice Description Account Line Item Amount 1000000173937 REPLACEMENT BENEFIT CONTRIBUTION 011-010-115-512020 45,728.40 37 1000000173937 REPLACEMENT BENEFIT CONTRIBUTION 011-010-120-512020 228.72 37 1000000173937 REPLACEMENT BENEFIT CONTRIBUTION 055-050-555-512020 1,899.00 37 1000000173937 REPLACEMENT BENEFIT CONTRIBUTION 055-050-580-512020 37 1000000173937 REPLACEMENT BENEFIT CONTRIBUTION 011-040-400-512020 37 1000000173937 REPLACEMENT BENEFIT CONTRIBUTION 058-070-700-512020 37 18,889.32 62,840.16 15,710.04 145,295.64Invoice Total: Page 51 of 55 . . Item 4 Page 53 of 57 CITY OF VERNON OPERATING ACCOUNT WARRANT REGISTER NO. 124 DATE 2/20/2024 VENDOR - 3142 - COLONIAL LIFE Invoice Description 120123 PAYMENT # 16683 PO or Contract 1/18/2024 Line Item Amount 6,420.05 Account COLONIAL SUPPLEMENTAL INS. DECEMBER 2023 011-000-000-210223 3,539.40 1,722.25 569.24 587.04 2.05 120123 120123 120123 120123 120123 COLONIAL SUPPLEMENTAL INS. DECEMBER 2023 COLONIAL SUPPLEMENTAL INS. DECEMBER 2023 COLONIAL SUPPLEMENTAL INS. DECEMBER 2023 COLONIAL SUPPLEMENTAL INS. DECEMBER 2023 055-000-000-210223 056-000-000-210223 058-000-000-210223 059-000-000-210223 011-010-130-523034COLONIAL SUPPLEMENTAL INS. DECEMBER 2023 0.07 Invoice Total:6,420.05 VENDOR - 3143 - AFLAC Invoice PAYMENT # 16684 PO or Contract 1/18/2024 12,850.02 Description Account Line Item Amount 369861 369861 369861 369861 369861 369861 AFLAC SUPPLEMENTAL INS. DECEMBER 2023 AFLAC SUPPLEMENTAL INS. DECEMBER 2023 AFLAC SUPPLEMENTAL INS. DECEMBER 2023 AFLAC SUPPLEMENTAL INS. DECEMBER 2023 AFLAC SUPPLEMENTAL INS. DECEMBER 2023 AFLAC SUPPLEMENTAL INS. DECEMBER 2023 011-000-000-210223 8,266.01 3,494.56 310.76 775.36 3.02 055-000-000-210223 056-000-000-210223 058-000-000-210223 059-000-000-210223 011-010-130-523034 0.31 Invoice Total:12,850.02 VENDOR - 3407 - VERNON POLICE OFFICERS BENEFIT PAYMENT # 16686 PO or Contract 1/12/2024 2,524.50 Invoice 011124 Description Account Line Item Amount UNION DUES PAY DATE 01.11.24 011-000-000-210250 2,524.50 Invoice Total:2,524.50 Page 52 of 55 . . Item 4 Page 54 of 57 CITY OF VERNON OPERATING ACCOUNT WARRANT REGISTER NO. 124 DATE 2/20/2024 VENDOR - 5323 - IBEW LOCAL 47 Invoice Description 010124 PAYMENT # 16687 1/12/2024 Line Item Amount 4,422.34 Account PO or Contract UNION DUES 01.11.24 UNION DUES 01.11.24 UNION DUES 01.11.24 058-000-000-210250 055-000-000-210250 056-000-000-210250 181.54 3,898.83 341.97 010124 010124 Invoice Total:4,422.34 VENDOR - 7541 - MISSIONSQUARE RETIREMENT PAYMENT # 16720 PO or Contract 1/11/2024 30,124.40 Invoice 011124 Description Account Line Item Amount DEFERRED COMPENSATION PAY DAY 011-000-000-210220 15,312.00 13,042.22 1,098.08 622.10 01.11.24 011124 011124 011124 011124 DEFERRED COMPENSATION PAY DAY 01.11.24 DEFERRED COMPENSATION PAY DAY 01.11.24 DEFERRED COMPENSATION PAY DAY 01.11.24 DEFERRED COMPENSATION PAY DAY 01.11.24 055-000-000-210220 056-000-000-210220 058-000-000-210220 059-000-000-210220 50.00 Invoice Total:30,124.40 VENDOR - 4075 - THE DEPARTMENT OF THE TREASURY PAYMENT # 16721 PO or Contract 1/12/2024 158,914.73 Invoice 011124 Description Account Line Item Amount FWH, STW, AND MEDICARE PAY DAY 01.11.24 011-000-000-210210 101,474.50 48,323.13 3,504.75 5,561.72 50.63 011124 011124 011124 011124 FWH, STW, AND MEDICARE PAY DAY 01.11.24 FWH, STW, AND MEDICARE PAY DAY 01.11.24 FWH, STW, AND MEDICARE PAY DAY 01.11.24 FWH, STW, AND MEDICARE PAY DAY 01.11.24 055-000-000-210210 056-000-000-210210 058-000-000-210210 059-000-000-210210 Invoice Total:158,914.73 Page 53 of 55 . . Item 4 Page 55 of 57 CITY OF VERNON OPERATING ACCOUNT WARRANT REGISTER NO. 124 DATE 2/20/2024 VENDOR - 1635 - EMPLOYMENT DEVELOPMENT DEPT PAYMENT # 16722 1/12/2024 Line Item Amount 51,367.23 Invoice 011124 Description Account PO or Contract STATE WITHHOLDING PAY DAY 01.11.24 STATE WITHHOLDING PAY DAY 01.11.24 STATE WITHHOLDING PAY DAY 01.11.24 STATE WITHHOLDING PAY DAY 01.11.24 STATE WITHHOLDING PAY DAY 01.11.24 011-000-000-210210 055-000-000-210210 056-000-000-210210 058-000-000-210210 059-000-000-210210 31,792.07 16,739.27 1,247.87 1,563.60 24.42 011124 011124 011124 011124 Invoice Total:51,367.23 VENDOR - 714 - CALPERS Invoice PAYMENT # 16723 PO or Contract 1/12/2024 229,503.40 Description Account Line Item Amount 011124 011124 011124 011124 011124 011124 CALPERS PAY DAY 01.11.24 CALPERS PAY DAY 01.11.24 CALPERS PAY DAY 01.11.24 CALPERS PAY DAY 01.11.24 CALPERS PAY DAY 01.11.24 CALPERS PAY DAY 01.11.24 011-000-000-210240 058-000-000-210240 055-000-000-210240 056-000-000-210240 059-000-000-210240 011-010-130-523034 156,153.46 9,305.49 59,753.49 4,203.51 87.65 (0.20) Invoice Total:229,503.40 PAYROLL DIRECT DEPOSIT Invoice 1/11/2024 781,932.32 Description Account PO or Contract Line Item Amount 011124 011124 011124 011124 011124 PAYROLL DIRECT DEPOSIT PAYROLL DIRECT DEPOSIT PAYROLL DIRECT DEPOSIT PAYROLL DIRECT DEPOSIT PAYROLL DIRECT DEPOSIT 011-000-000-210110 055-000-000-210110 056-000-000-210110 058-000-000-210110 059-000-000-210110 508,753.96 227,061.64 12,653.09 33,214.48 249.15 Invoice Total:781,932.32 Page 54 of 55 . . Item 4 Page 56 of 57 CITY OF VERNON OPERATING ACCOUNT WARRANT REGISTER NO. 124 DATE 2/20/2024 FUND EARLY CHECKS TOTAL ELECTRONIC TOTAL GRAND TOTAL 011 - GENERAL 055 - LIGHT & POWER 056 - NATURAL GAS 058 - WATER $ $ $ $ $ $ $ 400,336.43 $ $ $ $ $ $ $ 3,505,061.16 $ $ 3,905,397.59 86,068.31 5,212.59 17,961.66 536.55 7,337,322.78 40,260.07 140,588.73 6,420.00 7,423,391.09 45,472.66$ $ $ $ $ 158,550.39 6,956.55059 - FIBER 095 - SEWC JPA 900.00 150.00 1,050.00 Total 511,015.54 11,029,802.74 11,540,818.28 Page 55 of 55 AM . . Item 4 Page 57 of 57 City Council Agenda Report Meeting Date:February 20, 2024 From:Carlos Fandino, City Administrator Department:City Administration Submitted by:Diana Figueroa, Management Analyst Subject Fire Department Activity Report Recommendation Receive and file the December 2023 Fire Department Activity Report. Background Attached is a copy of a Fire Department Activity Report which covers the period of December 1 through December 31, 2023. The report is provided by Los Angeles County Fire and consists of incident details and a summary for the month. Fiscal Impact There is no fiscal impact associated with this report. Attachments 1. Fire Department Activity Report – December 2023 . . Item 5 Page 1 of 1 1 COUNTY OF LOS ANGELES FIRE DEPARTMENT CITY OF VERNON STATISTICS DECEMBER 2023 . . Item 5 Page 1 of 15 2 FIRES: Incident Date/Time Basic Incident Number (FD1) Basic Incident Full Address Basic Incident Type Code And Description (FD1.21) Basic Property Pre- Incident Value (FD1.37) Basic Property Losses (FD1.35) Basic Contents Pre- Incident Value (FD1.38) Basic Content Losses (FD1.36) Basic Primary Station Name (FD1.4) Basic Incident Address Favorite Address Postal Code (FD1.78) Basic Person Involved Postal Code (FD3.18) Basic Incident City Name (FD1.16): VERNON Basic Incident Postal Code (FD1.19): 90058 12/03/2023 LAC23415075 2900 South SANTA FE Avenue VERNON CA 90058 151 - Outside rubbish, trash or waste fire LAC052 12/05/2023 LAC23416796 3000 South SANTA FE Avenue VERNON CA 90058 154 - Dumpster or other outside trash receptacle fire LAC052 12/07/2023 LAC23420563 East 45TH Street and SAINT CHARLES ST VERNON CA 90058 131 - Passenger vehicle fire 50,000 50,000 0 0 LAC052 12/09/2023 LAC23422807 3824 South SANTA FE Avenue and E 38TH ST VERNON CA 90058 111 - Building fire LAC052 12/13/2023 LAC23427097 5110 East DISTRICT Boulevard and CUDAHY AV VERNON CA 90058 111 - Building fire 5,000 LAC163 12/19/2023 LAC23436397 4646 HAMPTON Street VERNON CA 90058 131 - Passenger vehicle fire LAC052 12/25/2023 LAC23443764 BANDINI Boulevard and S SOTO ST 150 - Outside rubbish fire, other LAC052 . . Item 5 Page 2 of 15 3 Incident Date/Time Basic Incident Number (FD1) Basic Incident Full Address Basic Incident Type Code And Description (FD1.21) Basic Property Pre- Incident Value (FD1.37) Basic Property Losses (FD1.35) Basic Contents Pre- Incident Value (FD1.38) Basic Content Losses (FD1.36) Basic Primary Station Name (FD1.4) Basic Incident Address Favorite Address Postal Code (FD1.78) Basic Person Involved Postal Code (FD3.18) VERNON CA 90058 12/26/2023 LAC23445354 3163 East VERNON Avenue VERNON CA 90058 100 - Fire, other LAC052 12/28/2023 LAC23447258 3049 East VERNON Avenue and S SOTO ST VERNON CA 90058 111 - Building fire LAC052 12/30/2023 LAC23450557 East LEONIS Boulevard and S BOYLE AV VERNON CA 90058 151 - Outside rubbish, trash or waste fire LAC013 Count: 10 TRANSPORTS: Disposition Incident Patient Disposition (eDisposition.12) Number of Incidents (ALS) Patient Treated, Transported 7 Canceled (Prior to Arrival At Scene) 3 Canceled on Scene (FD Not Needed) 11 Canceled on Scene (Unable to Locate Patient) 2 Care Transferred to BLS 26 Dead Prior to Arrival (814 Sxn I) (DOA) 1 Patient Refusal (AMA) - (No Transport) 13 Treated and Transported via LACoFD Vehicle 1 . . Item 5 Page 3 of 15 4 TYPES AND TOTALS: Cad Initial Cad Incident Type Description Fire Initial Cad Incident Type Description (FD1.86) Basic Incident Type Code And Description (FD1.21) Number of incidents Property Loss Content Loss Acres Burned Basic Incident Type Category (FD1.21): (None) Basic Incident City Name (FD1.16): VERNON TCA TCA 1 UNC UNC 1 Total: 2 Total: $0 Total: 0 Total: 0 Total: 2 Total: $0 Total: 0 Total: 0 Basic Incident Type Category (FD1.21): 1 - Fire Basic Incident City Name (FD1.16): VERNON GRS GRS 111 - Building fire 1 MISC1 MISC1 118 - Trash or rubbish fire, contained 1 MISC1 MISC1 150 - Outside rubbish fire, other 2 $0 0 RUB RUB 151 - Outside rubbish, trash or waste fire 3 RUB RUB 154 - Dumpster or other outside trash receptacle fire 1 STRC STRC 100 - Fire, other 1 STRC STRC 111 - Building fire 2 $5,000 STRC STRC 154 - Dumpster or other outside trash receptacle fire 1 $500 VEH VEH 131 - Passenger vehicle fire 2 $50,000 0 Total: 14 Total: $55,500 Total: 0 Total: 0 Total: 14 Total: $55,500 Total: 0 Total: 0 Basic Incident Type Category (FD1.21): 3 - Rescue & Emergency Medical Service Incident Basic Incident City Name (FD1.16): VERNON ABDA ABDA 321 - EMS call, excluding vehicle accident with injury 2 ARREST ARREST 321 - EMS call, excluding vehicle accident with injury 2 ASSLT ASSLT 300 - Rescue, EMS incident, other 1 ASSLT ASSLT 321 - EMS call, excluding vehicle accident with injury 1 BACK BACK 321 - EMS call, excluding vehicle accident with injury 1 BEHAVB BEHAVB 321 - EMS call, excluding vehicle accident with injury 1 CP CP 321 - EMS call, excluding vehicle accident with injury 2 CITY OF VERNON STATISTICS DECEMBER 2023 INCIDENT SUMMARY . . Item 5 Page 4 of 15 5 Cad Initial Cad Incident Type Description Fire Initial Cad Incident Type Description (FD1.86) Basic Incident Type Code And Description (FD1.21) Number of incidents Property Loss Content Loss Acres Burned CVA CVA 321 - EMS call, excluding vehicle accident with injury 2 DB DB 321 - EMS call, excluding vehicle accident with injury 3 DIAA DIAA 321 - EMS call, excluding vehicle accident with injury 1 EMS EMS 321 - EMS call, excluding vehicle accident with injury 3 GSW GSW 321 - EMS call, excluding vehicle accident with injury 1 INJA INJA 300 - Rescue, EMS incident, other 1 INJA INJA 321 - EMS call, excluding vehicle accident with injury 9 INJB INJB 321 - EMS call, excluding vehicle accident with injury 2 MAT MAT 321 - EMS call, excluding vehicle accident with injury 1 OD OD 321 - EMS call, excluding vehicle accident with injury 2 SICKA SICKA 321 - EMS call, excluding vehicle accident with injury 4 SICKB SICKB 300 - Rescue, EMS incident, other 1 SICKB SICKB 321 - EMS call, excluding vehicle accident with injury 2 STRC 321 - EMS call, excluding vehicle accident with injury 1 SZR SZR 300 - Rescue, EMS incident, other 1 TCA TCA 321 - EMS call, excluding vehicle accident with injury 6 TCA TCA 322 - Motor vehicle accident with injuries 2 TCB TCB 300 - Rescue, EMS incident, other 2 TCB TCB 321 - EMS call, excluding vehicle accident with injury 4 TCB TCB 322 - Motor vehicle accident with injuries 1 TCP TCP 321 - EMS call, excluding vehicle accident with injury 1 TCP TCP 322 - Motor vehicle accident with injuries 1 UNC UNC 300 - Rescue, EMS incident, other 1 UNC UNC 321 - EMS call, excluding vehicle accident with injury 8 CITY OF VERNON STATISTICS DECEMBER 2023 INCIDENT SUMMARY . . Item 5 Page 5 of 15 6 Cad Initial Cad Incident Type Description Fire Initial Cad Incident Type Description (FD1.86) Basic Incident Type Code And Description (FD1.21) Number of incidents Property Loss Content Loss Acres Burned Total: 70 Total: $0 Total: 0 Total: 0 Total: 70 Total: $0 Total: 0 Total: 0 Basic Incident Type Category (FD1.21): 4 - Hazardous Condition (No Fire) Basic Incident City Name (FD1.16): VERNON GASI GASI 412 - Gas leak (natural gas or LPG) 1 STRC STRC 440 - Electrical wiring/equipment problem, other 1 WIRES WIRES 440 - Electrical wiring/equipment problem, other 2 WIRES WIRES 444 - Power line down 1 Total: 5 Total: $0 Total: 0 Total: 0 Total: 5 Total: $0 Total: 0 Total: 0 Basic Incident Type Category (FD1.21): 5 - Service Call Basic Incident City Name (FD1.16): VERNON ALRWF ALRWF 520 - Water problem, other 2 INVO INVO 550 - Public service assistance, other 1 Total: 3 Total: $0 Total: 0 Total: 0 Total: 3 Total: $0 Total: 0 Total: 0 Basic Incident Type Category (FD1.21): 6 - Good Intent Call Basic Incident City Name (FD1.16): VERNON ALRA ALRA 611 - Dispatched and cancelled en route 19 ALRMAN ALRMAN 600 - Good intent call, other 1 ALRWF ALRWF 600 - Good intent call, other 2 ALRWF ALRWF 611 - Dispatched and cancelled en route 2 EMS EMS 600 - Good intent call, other 2 EMS EMS 611 - Dispatched and cancelled en route 3 INVO INVO 611 - Dispatched and cancelled en route 3 INVO INVO 651 - Smoke scare, odor of smoke 1 MISC1 MISC1 600 - Good intent call, other 1 PA PA 600 - Good intent call, other 1 STRC STRC 651 - Smoke scare, odor of smoke 1 TCA TCA 600 - Good intent call, other 3 TCB TCB 600 - Good intent call, other 4 TCP TCP 600 - Good intent call, other 2 TCP TCP 611 - Dispatched and cancelled en route 1 UNC UNC 600 - Good intent call, other 2 CITY OF VERNON STATISTICS DECEMBER 2023 INCIDENT SUMMARY . . Item 5 Page 6 of 15 7 Cad Initial Cad Incident Type Description Fire Initial Cad Incident Type Description (FD1.86) Basic Incident Type Code And Description (FD1.21) Number of incidents Property Loss Content Loss Acres Burned UNK UNK 600 - Good intent call, other 1 VEH VEH 611 - Dispatched and cancelled en route 1 Total: 50 Total: $0 Total: 0 Total: 0 Total: 50 Total: $0 Total: 0 Total: 0 Basic Incident Type Category (FD1.21): 7 - False Alarm & False Call Basic Incident City Name (FD1.16): VERNON ALRA ALRA 700 - False alarm or false call, other 3 ALRA ALRA 735 - Alarm system sounded due to malfunction 1 ALRWF ALRWF 700 - False alarm or false call, other 1 ALRWF ALRWF 741 - Sprinkler activation, no fire - unintentional 1 ALRWFR ALRWFR 700 - False alarm or false call, other 1 WIRES WIRES 700 - False alarm or false call, other 1 Total: 8 Total: $0 Total: 0 Total: 0 Total: 8 Total: $0 Total: 0 Total: 0 Total: 152 Total: $55,500 Total: 0 Total: 0 CITY DETAILS: Alarm Date Time Basic Incident Number (FD1) Cad Initial Cad Incident Type Description Incident Type Address Basic Incident Full Street Address Basic First Arrived At Scene Apparatus ID Basic Property Losses (FD1.35) Basic Content Losses (FD1.36) 12/01/23 LAC23411647 ALRA 611 - Dispatched and cancelled en route 5203 South DOWNEY Road VERNON CA 90058 5203 South DOWNEY Road E13 12/01/23 LAC23411740 INJA 321 - EMS call, excluding vehicle accident with injury 2555 East CHAMBERS Street VERNON CA 90058 2555 East CHAMBERS Street E52 12/01/23 LAC23411937 DB 321 - EMS call, excluding vehicle accident with injury 5233 South ALCOA Avenue VERNON CA 90058 5233 South ALCOA Avenue E13 12/01/23 LAC23412166 ALRA 611 - Dispatched and cancelled en route 2727 East VERNON Avenue VERNON CA 90058 2727 East VERNON Avenue E52 12/02/23 LAC23413432 ALRA 611 - Dispatched and cancelled en route 4820 East 50TH Street VERNON CA 90058 4820 East 50TH Street 12/02/23 LAC23413940 ALRA 611 - Dispatched and cancelled en route 3223 East 46TH Street VERNON CA 90058 3223 East 46TH Street E13 CITY OF VERNON STATISTICS DECEMBER 2023 INCIDENT SUMMARY CITY OF VERNON STATISTICS DECEMBER 2023 CITY DETAILS . . Item 5 Page 7 of 15 8 Alarm Date Time Basic Incident Number (FD1) Cad Initial Cad Incident Type Description Incident Type Address Basic Incident Full Street Address Basic First Arrived At Scene Apparatus ID Basic Property Losses (FD1.35) Basic Content Losses (FD1.36) 12/03/23 LAC23414153 EMS 611 - Dispatched and cancelled en route East SLAUSON Avenue and S ALCOA AV VERNON CA 90058 East SLAUSON Avenue and S ALCOA AV 12/03/23 LAC23415075 RUB 151 - Outside rubbish, trash or waste fire 2900 South SANTA FE Avenue VERNON CA 90058 2900 South SANTA FE Avenue E52 12/04/23 LAC23415550 WIRES 700 - False alarm or false call, other 2011 East 27TH Street VERNON CA 90058 2011 East 27TH Street E52 12/04/23 LAC23415606 TCA 322 - Motor vehicle accident with injuries East 37TH Street and S SANTA FE AV VERNON CA 90058 East 37TH Street and S SANTA FE AV E52 12/04/23 LAC23415742 STRC 651 - Smoke scare, odor of smoke 2537 East 27TH Street VERNON CA 90058 2537 East 27TH Street E52 12/04/23 LAC23415940 ALRWF 600 - Good intent call, other 3166 East SLAUSON Avenue VERNON CA 90058 3166 East SLAUSON Avenue E13 12/05/23 LAC23416796 RUB 154 - Dumpster or other outside trash receptacle fire 3000 South SANTA FE Avenue VERNON CA 90058 3000 South SANTA FE Avenue E52 12/05/23 LAC23417203 INJA 321 - EMS call, excluding vehicle accident with injury East 46TH Street and S SOTO ST VERNON CA 90058 East 46TH Street and S SOTO ST E52 12/05/23 LAC23417214 TCP 611 - Dispatched and cancelled en route 3737 South SOTO Street VERNON CA 90058 3737 South SOTO Street 12/05/23 LAC23417352 EMS 321 - EMS call, excluding vehicle accident with injury 1 South SANTA FE Avenue and E VERNON AV VERNON CA 90058 1 South SANTA FE Avenue and E VERNON AV E52 12/05/23 LAC23417355 UNC 321 - EMS call, excluding vehicle accident with injury 2335 East 27TH Street VERNON CA 90058 2335 East 27TH Street E13 12/05/23 LAC23417454 SICKA 321 - EMS call, excluding vehicle accident with injury East SLAUSON Avenue and MALBURG WY VERNON CA 90058 East SLAUSON Avenue and MALBURG WY E13 12/05/23 LAC23417848 INVO 651 - Smoke scare, odor of smoke 2761 FRUITLAND Avenue VERNON CA 90058 2761 FRUITLAND Avenue E52 12/05/23 LAC23417897 INVO 550 - Public service assistance, other 2700 FRUITLAND Avenue VERNON CA 90058 2700 FRUITLAND Avenue E52 12/06/23 LAC23418392 INJA 300 - Rescue, EMS incident, other 5801 South BOYLE Avenue VERNON CA 90058 5801 South BOYLE Avenue E13 CITY OF VERNON STATISTICS DECEMBER 2023 CITY DETAILS . . Item 5 Page 8 of 15 9 Alarm Date Time Basic Incident Number (FD1) Cad Initial Cad Incident Type Description Incident Type Address Basic Incident Full Street Address Basic First Arrived At Scene Apparatus ID Basic Property Losses (FD1.35) Basic Content Losses (FD1.36) 12/06/23 LAC23418425 GASI 412 - Gas leak (natural gas or LPG) 4580 South PACIFIC Boulevard VERNON CA 90058 4580 South PACIFIC Boulevard E52 12/06/23 LAC23418539 INVO 611 - Dispatched and cancelled en route STATE Street and E SLAUSON AV VERNON CA 90058 STATE Street and E SLAUSON AV E13 12/06/23 LAC23418964 BACK 321 - EMS call, excluding vehicle accident with injury South PACIFIC Boulevard and S SANTA FE AV VERNON CA 90058 South PACIFIC Boulevard and S SANTA FE AV E52 12/06/23 LAC23419105 TCB 600 - Good intent call, other East 45TH Street and S PACIFIC BLVD VERNON CA 90058 East 45TH Street and S PACIFIC BLVD E52 12/07/23 LAC23419468 TCA 600 - Good intent call, other 2503 East VERNON Avenue and ROSS ST VERNON CA 90058 2503 East VERNON Avenue and ROSS ST E52 12/07/23 LAC23419649 INVO 611 - Dispatched and cancelled en route NB 710 NO ATLANTIC Boulevard VERNON CA 90058 NB 710 NO ATLANTIC Boulevard 12/07/23 LAC23420067 INJA 321 - EMS call, excluding vehicle accident with injury 5300 South BOYLE Avenue VERNON CA 90058 5300 South BOYLE Avenue E13 12/07/23 LAC23420282 TCA 600 - Good intent call, other 2308 East 38TH Street VERNON CA 90058 2308 East 38TH Street E52 12/07/23 LAC23420563 VEH 131 - Passenger vehicle fire East 45TH Street and SAINT CHARLES ST VERNON CA 90058 East 45TH Street and SAINT CHARLES ST E52 50,000 0 12/08/23 LAC23421705 ALRA 735 - Alarm system sounded due to malfunction 3501 East VERNON Avenue VERNON CA 90058 3501 East VERNON Avenue E52 12/09/23 LAC23422118 ALRWF 741 - Sprinkler activation, no fire - unintentional 2555 East CHAMBERS Street VERNON CA 90058 2555 East CHAMBERS Street E52 12/09/23 LAC23422807 GRS 111 - Building fire 3824 South SANTA FE Avenue and E 38TH ST VERNON CA 90058 3824 South SANTA FE Avenue and E 38TH ST E52 12/10/23 LAC23424309 TCA 600 - Good intent call, other 5500 South SANTA FE Avenue VERNON CA 90058 5500 South SANTA FE Avenue S164 12/11/23 LAC23424648 INJA 321 - EMS call, excluding vehicle accident with injury 4580 South PACIFIC Boulevard VERNON CA 90058 4580 South PACIFIC Boulevard E52 CITY OF VERNON STATISTICS DECEMBER 2023 CITY DETAILS . . Item 5 Page 9 of 15 10 Alarm Date Time Basic Incident Number (FD1) Cad Initial Cad Incident Type Description Incident Type Address Basic Incident Full Street Address Basic First Arrived At Scene Apparatus ID Basic Property Losses (FD1.35) Basic Content Losses (FD1.36) 12/11/23 LAC23425088 CP 321 - EMS call, excluding vehicle accident with injury 6118 South ALCOA Avenue VERNON CA 90058 6118 South ALCOA Avenue S13 12/12/23 LAC23425892 ALRA 611 - Dispatched and cancelled en route 3055 East 44TH Street VERNON CA 90058 3055 East 44TH Street 12/12/23 LAC23425921 INJA 321 - EMS call, excluding vehicle accident with injury South SANTA FE Avenue and S PACIFIC BLVD VERNON CA 90058 South SANTA FE Avenue and S PACIFIC BLVD E52 12/12/23 LAC23426688 ALRA 611 - Dispatched and cancelled en route 3055 East 44TH Street VERNON CA 90058 3055 East 44TH Street 12/13/23 LAC23427097 STRC 111 - Building fire 5110 East DISTRICT Boulevard and CUDAHY AV VERNON CA 90058 5110 East DISTRICT Boulevard and CUDAHY AV E13 5,000 12/13/23 LAC23427097 STRC 321 - EMS call, excluding vehicle accident with injury 5110 DISTRICT Boulevard and CUDAHY AV VERNON CA 90058 5110 DISTRICT Boulevard and CUDAHY AV S13 12/13/23 LAC23427215 UNC 600 - Good intent call, other South PACIFIC Boulevard and S SANTA FE AV VERNON CA 90058 South PACIFIC Boulevard and S SANTA FE AV E52 12/13/23 LAC23427536 ALRA 611 - Dispatched and cancelled en route 3839 South SANTA FE Avenue VERNON CA 90058 3839 South SANTA FE Avenue 12/13/23 LAC23427593 TCA 321 - EMS call, excluding vehicle accident with injury East VERNON Avenue and S SOTO ST VERNON CA 90058 East VERNON Avenue and S SOTO ST S13 12/13/23 LAC23427883 ALRA 611 - Dispatched and cancelled en route 4820 East 50TH Street VERNON CA 90058 4820 East 50TH Street 12/13/23 LAC23427900 CVA 321 - EMS call, excluding vehicle accident with injury 2335 East 27TH Street VERNON CA 90058 2335 East 27TH Street E52 12/14/23 LAC23428617 VEH 611 - Dispatched and cancelled en route 3390 East SLAUSON Avenue VERNON CA 90058 3390 East SLAUSON Avenue E13 12/14/23 LAC23428810 TCA 321 - EMS call, excluding vehicle accident with injury 1 South DOWNEY Road and FRUITLAND AV VERNON CA 90058 1 South DOWNEY Road and FRUITLAND AV S13 12/14/23 LAC23428910 TCA 321 - EMS call, excluding vehicle accident with injury 1 South DOWNEY Road and FRUITLAND AV VERNON CA 90058 1 South DOWNEY Road and FRUITLAND AV S13 12/14/23 LAC23429061 ASSLT 321 - EMS call, excluding vehicle accident with injury 2137 East 52ND Street VERNON CA 90058 2137 East 52ND Street E52 CITY OF VERNON STATISTICS DECEMBER 2023 CITY DETAILS . . Item 5 Page 10 of 15 11 Alarm Date Time Basic Incident Number (FD1) Cad Initial Cad Incident Type Description Incident Type Address Basic Incident Full Street Address Basic First Arrived At Scene Apparatus ID Basic Property Losses (FD1.35) Basic Content Losses (FD1.36) 12/14/23 LAC23429258 SICKB 321 - EMS call, excluding vehicle accident with injury 3251 East LEONIS Boulevard VERNON CA 90058 3251 East LEONIS Boulevard E13 12/14/23 LAC23429705 DB 321 - EMS call, excluding vehicle accident with injury 4305 South SANTA FE Avenue VERNON CA 90058 4305 South SANTA FE Avenue E52 12/15/23 LAC23429789 UNC 321 - EMS call, excluding vehicle accident with injury 4525 DISTRICT Boulevard VERNON CA 90058 4525 DISTRICT Boulevard S13 12/15/23 LAC23430130 ALRA 611 - Dispatched and cancelled en route 4446 South PACIFIC Boulevard VERNON CA 90058 4446 South PACIFIC Boulevard 12/15/23 LAC23430316 ALRA 611 - Dispatched and cancelled en route 4578 East 49TH Street VERNON CA 90058 4578 East 49TH Street E13 12/15/23 LAC23430990 TCA South ALAMEDA Street and E 37TH ST VERNON CA 90058 South ALAMEDA Street and E 37TH ST E52 12/16/23 LAC23431131 EMS 600 - Good intent call, other South SOTO Street and E VERNON AV VERNON CA 90058 South SOTO Street and E VERNON AV E52 12/16/23 LAC23431413 ABDA 321 - EMS call, excluding vehicle accident with injury 2300 East 57TH Street VERNON CA 90058 2300 East 57TH Street E52 12/16/23 LAC23431466 EMS 611 - Dispatched and cancelled en route SEVILLE Avenue and E 45TH ST VERNON CA 90058 SEVILLE Avenue and E 45TH ST 12/16/23 LAC23431693 UNK 600 - Good intent call, other South SANTA FE Avenue and E VERNON AV VERNON CA 90058 South SANTA FE Avenue and E VERNON AV E52 12/16/23 LAC23432365 SICKA 321 - EMS call, excluding vehicle accident with injury 2424 East 28TH Street VERNON CA 90058 2424 East 28TH Street E52 12/17/23 LAC23432595 BEHAVB 321 - EMS call, excluding vehicle accident with injury South SANTA FE Avenue and E 49TH ST VERNON CA 90058 South SANTA FE Avenue and E 49TH ST E52 12/18/23 LAC23433883 OD 321 - EMS call, excluding vehicle accident with injury East VERNON Avenue and S SANTA FE AV VERNON CA 90058 East VERNON Avenue and S SANTA FE AV E52 12/18/23 LAC23434118 UNC 321 - EMS call, excluding vehicle accident with injury 2371 East 51ST Street VERNON CA 90058 2371 East 51ST Street E52 CITY OF VERNON STATISTICS DECEMBER 2023 CITY DETAILS . . Item 5 Page 11 of 15 12 Alarm Date Time Basic Incident Number (FD1) Cad Initial Cad Incident Type Description Incident Type Address Basic Incident Full Street Address Basic First Arrived At Scene Apparatus ID Basic Property Losses (FD1.35) Basic Content Losses (FD1.36) 12/18/23 LAC23434576 INJB 321 - EMS call, excluding vehicle accident with injury SEVILLE Avenue and E VERNON AV VERNON CA 90058 SEVILLE Avenue and E VERNON AV E52 12/18/23 LAC23434580 TCB 300 - Rescue, EMS incident, other DISTRICT Boulevard and CORONA AV VERNON CA 90058 DISTRICT Boulevard and CORONA AV E13 12/18/23 LAC23434582 ALRWF 611 - Dispatched and cancelled en route 4361 South SOTO Street VERNON CA 90058 4361 South SOTO Street 12/19/23 LAC23435224 SICKA 321 - EMS call, excluding vehicle accident with injury South PACIFIC Boulevard and E 46TH ST VERNON CA 90058 South PACIFIC Boulevard and E 46TH ST E52 12/19/23 LAC23435277 TCB 321 - EMS call, excluding vehicle accident with injury East VERNON Avenue and SEVILLE AV VERNON CA 90058 East VERNON Avenue and SEVILLE AV E52 12/19/23 LAC23435543 INJA 321 - EMS call, excluding vehicle accident with injury South HAMPTON Street and E 49TH ST VERNON CA 90058 South HAMPTON Street and E 49TH ST S164 12/19/23 LAC23435693 SICKB 321 - EMS call, excluding vehicle accident with injury 3031 East VERNON Avenue VERNON CA 90058 3031 East VERNON Avenue E52 12/19/23 LAC23436397 VEH 131 - Passenger vehicle fire 4646 HAMPTON Street VERNON CA 90058 4646 HAMPTON Street E52 12/20/23 LAC23436830 INJA 321 - EMS call, excluding vehicle accident with injury 4633 South DOWNEY Road VERNON CA 90058 4633 South DOWNEY Road S13 12/20/23 LAC23437431 WIRES 440 - Electrical wiring/equipment problem, other 3046 East 50TH Street VERNON CA 90058 3046 East 50TH Street E13 12/20/23 LAC23437465 INJB 321 - EMS call, excluding vehicle accident with injury South PACIFIC Boulevard and S SANTA FE AV VERNON CA 90058 South PACIFIC Boulevard and S SANTA FE AV E52 12/20/23 LAC23437677 TCP 600 - Good intent call, other East VERNON Avenue and S ALCOA AV VERNON CA 90058 East VERNON Avenue and S ALCOA AV S13 12/20/23 LAC23437692 STRC 440 - Electrical wiring/equipment problem, other 2537 East 27TH Street VERNON CA 90058 2537 East 27TH Street E164 12/21/23 LAC23438200 INJA 321 - EMS call, excluding vehicle accident with injury 5801 South BOYLE Avenue VERNON CA 90058 5801 South BOYLE Avenue E13 12/21/23 LAC23438316 DIAA 321 - EMS call, excluding vehicle accident with injury 3301 East VERNON Avenue VERNON CA 90058 3301 East VERNON Avenue E52 CITY OF VERNON STATISTICS DECEMBER 2023 CITY DETAILS . . Item 5 Page 12 of 15 13 Alarm Date Time Basic Incident Number (FD1) Cad Initial Cad Incident Type Description Incident Type Address Basic Incident Full Street Address Basic First Arrived At Scene Apparatus ID Basic Property Losses (FD1.35) Basic Content Losses (FD1.36) 12/21/23 LAC23439018 ALRWF 520 - Water problem, other 2727 East VERNON Avenue VERNON CA 90058 2727 East VERNON Avenue E52 12/21/23 LAC23439045 ALRA 611 - Dispatched and cancelled en route 2727 East VERNON Avenue VERNON CA 90058 2727 East VERNON Avenue 12/21/23 LAC23439077 ALRWF 520 - Water problem, other 3285 East VERNON Avenue VERNON CA 90058 3285 East VERNON Avenue E52 12/22/23 LAC23439289 ALRWF 700 - False alarm or false call, other 3285 East VERNON Avenue VERNON CA 90058 3285 East VERNON Avenue E52 12/22/23 LAC23439707 ALRWF 600 - Good intent call, other 5207 South DOWNEY Road VERNON CA 90058 5207 South DOWNEY Road E13 12/22/23 LAC23440278 TCB 322 - Motor vehicle accident with injuries STATE Street and E SLAUSON AV VERNON CA 90058 STATE Street and E SLAUSON AV E13 12/23/23 LAC23440499 ASSLT 300 - Rescue, EMS incident, other 2905 East 50TH Street VERNON CA 90058 2905 East 50TH Street 12/23/23 LAC23441617 TCA 321 - EMS call, excluding vehicle accident with injury South ALCOA Avenue and E 44TH ST VERNON CA 90058 South ALCOA Avenue and E 44TH ST E13 12/23/23 LAC23441656 TCB 300 - Rescue, EMS incident, other South ALCOA Avenue and E 44TH ST VERNON CA 90058 South ALCOA Avenue and E 44TH ST E13 12/24/23 LAC23441808 SICKA 321 - EMS call, excluding vehicle accident with injury 4580 South PACIFIC Boulevard VERNON CA 90058 4580 South PACIFIC Boulevard E52 12/25/23 LAC23443107 EMS 321 - EMS call, excluding vehicle accident with injury 4305 South SANTA FE Avenue VERNON CA 90058 4305 South SANTA FE Avenue E52 12/25/23 LAC23443149 EMS 321 - EMS call, excluding vehicle accident with injury 4305 South SANTA FE Avenue VERNON CA 90058 4305 South SANTA FE Avenue E52 12/25/23 LAC23443764 MISC1 150 - Outside rubbish fire, other BANDINI Boulevard and S SOTO ST VERNON CA 90058 BANDINI Boulevard and S SOTO ST E52 12/25/23 LAC23444068 ALRA 700 - False alarm or false call, other 4625 DISTRICT Boulevard VERNON CA 90058 4625 DISTRICT Boulevard E13 12/26/23 LAC23444349 WIRES 444 - Power line down South ALAMEDA Street and ROSS ST VERNON CA 90058 South ALAMEDA Street and ROSS ST E52 CITY OF VERNON STATISTICS DECEMBER 2023 CITY DETAILS . . Item 5 Page 13 of 15 14 Alarm Date Time Basic Incident Number (FD1) Cad Initial Cad Incident Type Description Incident Type Address Basic Incident Full Street Address Basic First Arrived At Scene Apparatus ID Basic Property Losses (FD1.35) Basic Content Losses (FD1.36) 12/26/23 LAC23444545 CVA 321 - EMS call, excluding vehicle accident with injury 3336 FRUITLAND Avenue VERNON CA 90058 3336 FRUITLAND Avenue S13 12/26/23 LAC23444756 ALRA 611 - Dispatched and cancelled en route 5580 South ALAMEDA Street VERNON CA 90058 5580 South ALAMEDA Street 12/26/23 LAC23445354 STRC 100 - Fire, other 3163 East VERNON Avenue VERNON CA 90058 3163 East VERNON Avenue S13 12/27/23 LAC23445723 ALRA 611 - Dispatched and cancelled en route 2550 East 25TH Street VERNON CA 90058 2550 East 25TH Street 12/27/23 LAC23446056 ALRMAN 600 - Good intent call, other 4520 MAYWOOD Avenue VERNON CA 90058 4520 MAYWOOD Avenue 12/27/23 LAC23446268 ALRA 700 - False alarm or false call, other 3345 East SLAUSON Avenue VERNON CA 90058 3345 East SLAUSON Avenue E13 12/27/23 LAC23446737 TCB 321 - EMS call, excluding vehicle accident with injury South DOWNEY Road and E LEONIS BLVD VERNON CA 90058 South DOWNEY Road and E LEONIS BLVD E13 12/28/23 LAC23447163 ALRA 611 - Dispatched and cancelled en route 3450 East VERNON Avenue VERNON CA 90058 3450 East VERNON Avenue 12/28/23 LAC23447258 STRC 111 - Building fire 3049 East VERNON Avenue and S SOTO ST VERNON CA 90058 3049 East VERNON Avenue and S SOTO ST E52 12/28/23 LAC23447574 TCB 321 - EMS call, excluding vehicle accident with injury South ALAMEDA Street and E VERNON AV VERNON CA 90058 South ALAMEDA Street and E VERNON AV E52 12/28/23 LAC23447776 ALRWF 611 - Dispatched and cancelled en route 3450 East VERNON Avenue VERNON CA 90058 3450 East VERNON Avenue 12/28/23 LAC23447942 EMS 611 - Dispatched and cancelled en route East 50TH Street and DISTRICT BLVD VERNON CA 90058 East 50TH Street and DISTRICT BLVD 12/29/23 LAC23448333 ALRA 700 - False alarm or false call, other 4625 DISTRICT Boulevard VERNON CA 90058 4625 DISTRICT Boulevard 12/29/23 LAC23448490 UNC 600 - Good intent call, other South PACIFIC Boulevard and S SANTA FE AV VERNON CA 90058 South PACIFIC Boulevard and S SANTA FE AV E52 12/29/23 LAC23448666 ALRA 611 - Dispatched and cancelled en route 3450 East VERNON Avenue VERNON CA 90058 3450 East VERNON Avenue CITY OF VERNON STATISTICS DECEMBER 2023 CITY DETAILS . . Item 5 Page 14 of 15 15 Alarm Date Time Basic Incident Number (FD1) Cad Initial Cad Incident Type Description Incident Type Address Basic Incident Full Street Address Basic First Arrived At Scene Apparatus ID Basic Property Losses (FD1.35) Basic Content Losses (FD1.36) 12/29/23 LAC23449087 INJA 321 - EMS call, excluding vehicle accident with injury 4480 South PACIFIC Boulevard VERNON CA 90058 4480 South PACIFIC Boulevard E52 12/29/23 LAC23449107 UNC 300 - Rescue, EMS incident, other 5151 South ALCOA Avenue VERNON CA 90058 5151 South ALCOA Avenue S13 12/30/23 LAC23450557 RUB 151 - Outside rubbish, trash or waste fire East LEONIS Boulevard and S BOYLE AV VERNON CA 90058 East LEONIS Boulevard and S BOYLE AV E13 12/31/23 LAC23451364 ALRA 611 - Dispatched and cancelled en route 3450 East VERNON Avenue VERNON CA 90058 3450 East VERNON Avenue 12/31/23 LAC23451673 ALRA 611 - Dispatched and cancelled en route 3450 East VERNON Avenue VERNON CA 90058 3450 East VERNON Avenue Count: 114 CITY OF VERNON STATISTICS DECEMBER 2023 CITY DETAILS . . Item 5 Page 15 of 15 City Council Agenda Report Meeting Date:February 20, 2024 From:Robert Sousa, Chief of Police Department:Police Submitted by:Donna Aggers, Records Manager Subject Police Department Activity Report Recommendation Receive and file the December 2023 Police Activity Report. Background The Vernon Police Department’s activity report consists of activity during the specified reporting period, including a summary of calls for service, and statistical information regarding arrests, traffic collisions, stored and impounded vehicles, recovered stolen vehicles, the number of citations issued, and the number of reports filed. Fiscal Impact There is no fiscal impact associated with this report. Attachments 1. Police Department Activity Report – December 2023 . . Item 6 Page 1 of 1 VERNON POLICE DEPARTMENT Department Activity Report First Date: 12/01/2023 Jurisdiction: VERNON Last Date: 12/31/2023 Department Complaint Description All Units Primary Unit Type VPD 10-6 OFFICER IS 10-6 C7,961,962,10-10, WASH, EQUIPM 10-96 CHARLES (CITY HALL SECURITY CHECK) PICK UP THE JAIL PAPER WORK FROM HP JAIL & SUPPLEMENTAL REPORT COURT ORDER VIOLATION REPORT INJURY HIT AND RUN 177 1 170 110-96C 1096H & AR 140 20 3 16 2 166R 20001 20001R 20002 20002R 211R 211S 240R 242 2 1 4 2 INJURY HIT AND RUN REPORT NON-INJURY HIT AND RUN NON-INJURY HIT AND RUN REPORT ROBBERY REPORT 5 1 8 4 8 5 6 1 SILENT ROBBERY ALARM ASSAULT REPORT 15 1 4 1 BATTERY 3 1 245R 261R 273.5 273.5R 314 ASSAULT WITH A DEADLY WEAPON REPORT RAPE REPORT 1 1 4 1 DOMESTIC VIOLENCE 6 1 DOMESTIC VIOLENCE REPORT INDECENT EXPOSURE 3 1 3 1 415 DISTURBING THE PEACE BRANDISHING A WEAPON TERRORIST THREATS 58 4 24 1417 422 5 1 422R 451R 459 TERRORIST THREATS REPORT ARSON REPORT 2 1 2 1 BURGLARY 6 1 459A 459R 459S 459V 459VR 470R 476R 484R 487 AUDIBLE BURGLARY ALARM BURGLARY REPORT 419 10 5 222 6 SILENT BURGLARY ALARM BURGLARY TO A VEHICLE BURGLARY TO A VEHICLE REPORT FORGERY REPORT 2 4 1 9 4 3 1 FRAUD REPORT 1 1 PETTY THEFT REPORT 6 4 GRAND THEFT 2 1 487R 5150 586 GRAND THEFT REPORT 17 4 8 SUBJECT WITH MENTAL DISABILITIES PARKING PROBLEM 1 84 9 78 9586E 594 PARKING ENFORCEMENT VANDALISM 19 12 57 1 7 594R 602 VANDALISM REPORT 11 23 1 TRESPASS 647F 901 DRUNK IN PUBLIC UNKNOWN INJURY TRAFFIC COLLISION INJURY TRAFFIC COLLISION INJURY TRAFFIC COLLISION REPORT NON-INJURY TRAFFIC COLLISION NON-INJURY TRAFFIC COLLISION REPORT TRAFFIC CONTROL 5 2 901T 901TR 902T 902TR 909C 28 7 9 3 87 3 44 2 7 3 01/22/2024 15:08:15 Page 1 of 3 . . Item 6 Page 1 of 57 VERNON POLICE DEPARTMENT Department Activity Report First Date: 12/01/2023 Jurisdiction: VERNON Last Date: 12/31/2023 Department Complaint Description All Units Primary Unit Type VPD 909E TRAFFIC ENFORCEMENT TRAFFIC HAZARD 1 13 9 1 7909T 911 911 MISUSE / HANGUP CONTACT THE REPORTING PARTY ABANDONED VEHICLE LOST PROPERTY REPORT SUSPICIOUS CIRCUMSTANCES UNKNOWN TROUBLE 5 911A 28 12 4 22 6917A 920PR 925 2 114 8 45 3927 A211R A487 ATTEMPT ROBBERY REPORT ATTEMPT GRAND THEFT ATTEMPT GRAND THEFT AUTO REPORT ASSIST FIRE DEPARTMENT BAR CHECK 1 1 3 1 AGTAR ASSISTFD BARCK BOSIG BOVEH CITCK CIVIL 1 1 77 1 28 1 BROKEN SIGNAL OR LIGHT BROKEN DOWN VEHICLE CITATION CHECK 12 53 1 8 34 1 CIVIL MATTER 7 3 COP COP DETAIL 1 1 DET DETECTIVE INVESTIGATION DETAIL 43 16 8 14 12 1 DETAIL DOA DEAD ON ARRIVAL DPTAST DUI CKPT DUITRAFFIC DUST DEPARTMENTAL ASSIST DUI CHECK POINT 30 4 16 2 DUI CHECK POINT TRAFFIC DUST FOR PRINTS 2 1 3 1 FILING FOUND FU OFFICER IS 10-6 REPORT WRITING FOUND PROPERTY REPORT FOLLOW UP 86 2 83 2 13 2 11 1GTAGRAND THEFT AUTO GTAR HBC GRAND THEFT AUTO REPORT HAILED BY A CITIZEN 28 8 18 5 ILLDPG KTP ILLEGAL DUMPING 2 1 KEEP THE PEACE 6 3 LOCATE LOJACK LPR LOCATED VERNON STOLEN VEHICLE / PLATES VI LOJACK HIT 5 5 1 1 LICENSE PLATE READER LOCATED MISSING PERSON REPORT MISC REPORT 8 2 MISPLOCATE MR60 3 1 5 2 PANIC ALARM PANIC ALARM/DURESS ALARM 41 19 217 30 2 14 12 180 15 1 PAPD PUBLIC ASSIST-POLICE PATCK PEDCK PLATE PRSTRAN REC PATROL CHECK PEDESTRIAN CHECK LOST OR STOLEN PLATES REPORT PRISONER TRANSPORTED RECOVERED STOLEN VEHICLE IN THE FIELD 7 7 38 7 15 2RECKLESS DR RECKLESS DRIVING (23103) REPO REPOSSESSION 7 7 01/22/2024 15:08:15 Page 2 of 3 . . Item 6 Page 2 of 57 VERNON POLICE DEPARTMENT Department Activity Report First Date: 12/01/2023 Jurisdiction: VERNON Last Date: 12/31/2023 Department Complaint All Units Primary Unit Type Description VPD ROADRAGE RR ROAD RAGE 6 5 4 2RAIL ROAD PROBLEM SPEEDTRAILE TO BE USED WHEN THE TRAILERS ARE DEPLOYE SRMET SRMET DETAIL 8 7 1 1 TRAFFIC STOP TRAFFIC STOP 270 2 245 2UNATTACHED UNATTACHED TRAILER VCK VEHICLE CHECK 93 7 71 5VEH RELEASE VEHICLE RELEASE VMCVIO WARRANT WELCK VERNON MUNICIPAL CODE VIOLATION 3 2 WARRANT ARREST WELFARE CHECK 2 28 2 15 Department: Overall: 2560 1647 16472560 01/22/2024 15:08:15 Page 3 of 3 . . Item 6 Page 3 of 57 VERNON POLICE DEPARTMENT Police Activity Report Period Ending: 12/31/23 TRAFFIC COLLISIONS TOTAL NON-INJURY INJURY Persons Injured Pedestrian NO. 32 19 13 20 0 PROPERTY RECOVERED VEHICLES: $ 365,000.00 Fatalities 0 City Property Damage Hit & Run (Felony) Hit & Run (Misdemeanor) 0 2 5 VEHICLES STORED Unlicensed Driver/Impounded Vehicle Unattached Trailer PROPERTY RECOVERED FOR OTHER DEPARTMENTS VEHICLES: $ 102,501.00 17 0 Abandoned/Stored Vehicle Traffic Hazard 9 0 CITATIONS Citations Iss (Prisoner Release) Citations Iss (Other Violations) Parking 34 0 67 83 54 Hazardous Non-Hazardous Citations Iss (Moving) Citations Iss (Total) 137 204 CASES CLEARED BY ARREST AR23-428 AR23-429 AR23-430 AR23-436 AR23-437 AR23-438 AR23-441 AR23-443 AR23-444 AR23-446 CR23-1894 14601.2(A) VC AR23-447 AR23-449 AR23-450 AR23-451 AR23-452 AR23-453 AR23-454 AR23-455 AR23-458 AR23-459 CR23-2010 487(A) PC CR23-2020 148.9(A) PC CR23-2030 417(A)(1) PC CR23-2040 20002(A) VC CR23-2046 273.5(A) PC CR23-2049 594(B)(1) PC CR23-2052 487 PC CR23-2052 487 PC CR23-2050 211 PC CR23-2055 10851 VC CR23-1899 10851 VC CR23-1912 14601.2(A) VC CR23-1962 273.5(D) PC CR23-1964 273(A)(A) PC CR23-1965 14601.2(A) VC CR23-1983 148(A)(1) PC CR23-1996 261.5 PC CR23-2002 11364(A) HS CR23-2007 273.5 PC . . Item 6 Page 4 of 57 VERNON POLICE DEPARTMENT REPORT FOR PERSONS ARRESTED PERIOD ENDING: 12/31/2023 ADULT FELONY ARRESTS AND DISPOSITIONS MALE FEMALE TOTAL ARSON ASSAULT BURGLARY (& ATTEMPTED) CARRY LOADED FIREARM PERSON/VEH CORPORAL INJURY ON SPOUSE/COHABITANT CHILD ABUSE/CHILD ENDANGERMENT DRIVING UNDER THE INFLUENCE w/ INJURY EMBEZZLEMENT 1 1 1 FORGERY GRAND THEFT: AUTO (& ATTEMPTED) GRAND THEFT: PROPERTY (& ATTEMPTED) HIT/RUN 2 3 1 KIDNAPPING POSSESSION OF STOLEN PROPERTY RAPE RESISTING/OBSTRUCTING ROBBERY 1 1 SEXUAL BATTERY THREATS VANDALISM WARRANT (VERNON) WARRANT (OUTSIDE AGENCY) WEAPONS TOTAL FELONY ARRESTS 1 1 4 2 1 12 16 ADULT MISDEMEANOR ARRESTS AND DISPOSITIONS MALE FEMALE TOTAL ASSAULT CARRY LOADED FIREARM PERSON/VEH DISPLAY UNLAWFUL VEH REGISTRATION DRIVING WITH SUSPENDED LICENSE DRUNK IN PUBLIC 3 6DUI 1 FAIL TO SIGN CITATION ILLEGAL DUMPING MAIL THEFT OPERATE VEHICLE W/O INTERLOCK DEV PETTY THEFT POSSESSION OF NARCOTICS POSSESSION OF PARAPHERNALIA POSSESSION OF STOLEN PROPERTY RECKLESS DRIVING RESISTING/OBSTRUCTING SPEED CONTEST 1 1 1 THREATS THROW SUBSTANCE AT VEHICLE TRESPASSING UNDETECTABLE FIREARM VANDALISM VEHICLE TAMPERING VIOLATE COURT ORDER WARRANT (OUTSIDE AGENCY) WARRANT (VERNON) WEAPONS 4 1 TOTAL MISD. ARRESTS 15 3 18 JUVENILES DETAINED --- FELONY AND MISDEMEANOR MALE FEMALE TOTAL BURGLARY CARRY LOADED FIREARM IN PUBLIC ROBBERY VANDALISM WARRANT 0 0 0 0 0 0TOTAL JUVENILES DET.0 0 TOTAL FELONY ARRESTS (ADULT) TO DATE: TOTAL MISDEMEANOR ARRESTS (ADULT) TO DATE: TOTAL JUVENILES DETAINED (FELONY AND MISDEMEANOR) TO DATE: 152 307 0 TOTAL ARRESTS AND DETAINED JUVENILES (FELONY AND MISDEMEANOR) TO DATE:0 . . Item 6 Page 5 of 57 VERNON POLICE DEPARTMENT Call Log Report Type All Unit Times and Location with OCA's First Date: 12/01/2023 Jurisdiction: VERNON Last Date: 12/01/2023 CallerCall Number Disp Ten Received Code Complaint Address Unit Time Dep Officer Unit Dispatch Enroute OnScene Depart Arrive Remove Comp 20231223382 12/01/2023 17:46:54 VIERTELS TOW 5289 ELLENWOOD DRIVE, LOS ANGELES VPD RECORDS BUREA *RECD VREC LOCATE 17:47:31 18:12:31 20231223384 12/01/2023 17:51:25 JOSH PACIFIC BL // 52D, VERNON VPD GODOY,RAYMON *47 17:54:47 VPD HERNANDEZ,MEL 38W 1015 925RPT 17:54:48 17:55:57 17:57:17 17:58:03 18:51:46 18:26:25 * Denotes Primary Unit 12/02/2023 00:10:41 Page 1 of 1 . . Item 6 Page 6 of 57 VERNON POLICE DEPARTMENT Call Log Report Type All Unit Times and Location with OCA's First Date: 12/02/2023 Jurisdiction: VERNON Last Date: 12/02/2023 CallerCall Number Disp Ten Received Code Complaint Address Unit Time Dep Officer Unit Dispatch Enroute OnScene Depart Arrive Remove Comp 20231223479 12/02/2023 22:14:31 TRAFFIC STOP 1015 Department OCA Number VPD CR23-1889 RMS Juris CA0197300WASHINGTON // SOTO, VERNONRPT VI VPD OURIQUE,CARLO MR C TOW *1T8 22:14:32 23:03:10 23:44:10 23:44:10MR C TOW 22:42:42 22:42:42 * Denotes Primary Unit 12/03/2023 00:16:05 Page 1 of 1 . . Item 6 Page 7 of 57 VERNON POLICE DEPARTMENT Call Log Report Type All Unit Times and Location with OCA's First Date: 12/03/2023 Jurisdiction: VERNON Last Date: 12/03/2023 CallerCall Number Disp Ten Received Code Complaint Address Unit Time Dep Officer Unit Dispatch Enroute OnScene Depart Arrive Remove Comp 20231223499 12/03/2023 07:39:33 TNT 3080 E 50TH, VERNON VS Department OCA Number VPD CR23-1890 RMS Juris CA0197300917A VPD ESCARPE,ALAN VIRTELSTOW *40E 07:40:33 07:44:18 07:59:31 07:55:47 08:22:45 08:32:52 08:32:52VIERTELTOW 07:58:51 20231223503 12/03/2023 09:07:27 GTA RPT Department OCA Number VPD RMS Juris CA01973003280 E 44TH, VERNON CR23-1891 VPD HERNANDEZ,RUD VPD ESCARPE,ALAN *43W 40E 09:07:38 09:54:30 09:19:26 09:19:29 09:54:34 09:56:47 20231223511 12/03/2023 13:50:41 911A RPT Department OCA Number VPD RMS Juris CA01973004305 S SANTA FE AV, VERNON CR23-1893 VPD HERNANDEZ,RUD *43W 13:50:50 13:55:14 14:09:12 20231223512 12/03/2023 14:02:11 901T TOYOTA TELEMATICS CALL CENTER 4800 E 26TH, VERNON RPT Department OCA Number VPD RMS Juris CA0197300CR23-1892 VPD ESCARPE,ALAN VPD VILLEGAS,RICHAR *40E 14:03:00 14:03:26 14:07:55 14:09:16 14:14:49 14:07:04 14:16:49 14:13:37 14:28:10 14:18:41 15:25:07 15:25:07 32 15:23:56 VPD HERNANDEZ,RUD MR C TOW 43W 14:45:48 MR C TOW S7VPD HERNANDEZ,EDW 14:45:57 20231223522 12/03/2023 20:45:57 TRAFFIC STOP 1015 Department OCA Number VPD CR23-1894 RMS Juris CA0197300S ATLANTIC BL // BANDINI BL, VERNONVIVIERTEL RPT SRVD CITE VPD REDONA,BRYAN VPD NEWTON,TODD *43E 47 20:45:57 20:58:25 21:40:12 21:40:1320:52:54 12/04/2023 00:01:22 Page 1 of 2 . . Item 6 Page 8 of 57 VERNON POLICE DEPARTMENT Call Log Report Type All Unit Times and Location with OCA's First Date: 12/03/2023 Jurisdiction: VERNON Last Date: 12/03/2023 CallerCall Number Disp Ten Received Code Complaint Address Unit Time Dep Officer Unit Dispatch Enroute OnScene Depart Arrive Remove Comp 20231223522 12/03/2023 20:45:57 TRAFFIC STOP 1015 Department OCA Number VPD CR23-1894 RMS Juris CA0197300S ATLANTIC BL // BANDINI BL, VERNONVIVIERTEL RPT SRVD CITE VIRTELSTOW VIERTELTOW 21:09:32 21:10:13 21:24:22 21:40:13 * Denotes Primary Unit 12/04/2023 00:01:22 Page 2 of 2 . . Item 6 Page 9 of 57 VERNON POLICE DEPARTMENT Call Log Report Type All Unit Times and Location with OCA's First Date: 12/04/2023 Jurisdiction: VERNON Last Date: 12/04/2023 CallerCall Number Disp Ten Received Code Complaint Address Unit Time Dep Officer Unit Dispatch Enroute OnScene Depart Arrive Remove Comp 20231223539 12/04/2023 05:56:34 HERMOSO TEXTILE 3300 BANDINI BL, VERNON VPD REDONA,BRYAN *43E RPT Department OCA Number CR23-1895 RMS Juris CA0197300459VPD 05:57:50 07:05:04 06:00:00 07:09:26 06:00:26 07:15:54 06:02:37 06:02:03 06:52:18 06:52:18 VPD HERNANDEZ,RUD VPD SALDANA,CARLO VPD VILLEGAS,RICHAR VPD NEWTON,TODD VPD OURIQUE,CARLO 32E 07:05:02 08:03:24 32W 43 06:26:14 07:22:3707:05:48 05:57:5147 XS 06:27:36 20231223551 12/04/2023 08:04:23 901T T-MOBILE USA, INC. E 37TH // SANTA FE AV, VERNON RPT Department OCA Number VPD RMS Juris CA0197300CR23-1896 VPD VILLEGAS,RICHAR VPD HERNANDEZ,RUD *43 08:05:09 08:08:08 08:08:31 09:59:37 32E 09:02:32 20231223552 12/04/2023 08:46:51 920PR RPT Department OCA Number VPD RMS Juris CA01973004305 S SANTA FE AV, VERNON CR23-1897 VPD HERNANDEZ,RUD *32E 08:55:08 09:09:33 08:55:15 09:25:05 11:00:14 20231223558 12/04/2023 09:56:31 245R FEDEX 4500 BANDINI BL, VERNON RPT Department OCA Number VPD RMS Juris CA0197300CR23-1898 VPD VILLEGAS,RICHAR *43 10:17:35 20231223572 12/04/2023 13:04:15 REC VREC Department OCA Number VPD CR23-1899 RMS Juris CA0197300S SANTA FE AV // 25TH, VERNONRPT 1015 VPD RAMOS,JOSE VPD CEDENO,RUTH *s6 2P8 32E 43 13:08:35 13:14:44 13:13:41 13:13:16 13:35:33 14:36:01 VPD HERNANDEZ,RUD VPD VILLEGAS,RICHAR 13:12:00 13:08:59 14:45:33 13:55:52 12/05/2023 00:19:27 Page 1 of 3 . . Item 6 Page 10 of 57 VERNON POLICE DEPARTMENT Call Log Report Type All Unit Times and Location with OCA's First Date: 12/04/2023 Jurisdiction: VERNON Last Date: 12/04/2023 CallerCall Number Disp Ten Received Code Complaint Address Unit Time Dep Officer Unit Dispatch Enroute OnScene Depart Arrive Remove Comp 20231223572 12/04/2023 13:04:15VREC Department OCA Number VPD CR23-1899 RMS Juris CA0197300RECS SANTA FE AV // 25TH, VERNONRPT 1015 VPD ESCOBEDO,ALEX 47W 13:08:57 13:10:38 14:29:41 20231223575 12/04/2023 14:14:20 594R RPT Department OCA Number VPD RMS Juris CA01973003600 S SOTO, VERNON CR23-1900 VPD VILLEGAS,RICHAR *43 14:32:27 14:38:40 15:28:35 16:32:35 20231223577 12/04/2023 14:31:55 422R RPT Department OCA Number VPD CR23-1901 RMS Juris CA01973004700 E DISTRICT BL, VERNON VPD SWINFORD,PHILL VPD MANNINO,NICHOL *5D32 5D35 14:31:55 14:32:02 16:32:24 20231223580 12/04/2023 15:14:57 GTAR CAPTIAL LOGISTICS 3751 SEVILLE AV, VERNON *47W 15:52:37 RPCB Department OCA Number CR23-1903 RMS Juris CA0197300RPTVPD VPD ESCOBEDO,ALEX VPD SWINFORD,PHILL 15:52:42 16:00:09 16:33:09 16:43:36 5D32 16:33:33 20231223581 12/04/2023 15:18:19 20002R RPT Department OCA Number VPD RMS Juris CA0197300ALCOA AV // MALBURG WY, VERNON CR23-1902 VPD HERNANDEZ,RUD *32E 15:20:58 15:21:17 15:31:38 15:54:13 20231223586 12/04/2023 17:30:16 594R T-MOBILE USA 888-662-4662 OPT 4 4900 E 49TH, VERNON RPT Department OCA Number VPD RMS Juris CA0197300CR23-1904 VPD HERNANDEZ,RUD *32E 17:31:11 17:31:44 17:38:42 18:05:53 20231223595 12/05/2023 00:19:27 Page 2 of 3 . . Item 6 Page 11 of 57 VERNON POLICE DEPARTMENT Call Log Report Type All Unit Times and Location with OCA's First Date: 12/04/2023 Jurisdiction: VERNON Last Date: 12/04/2023 CallerCall Number Disp Ten Received Code Complaint Address Unit Time Dep Officer Unit Dispatch Enroute OnScene Depart Arrive Remove Comp 20231223595 12/04/2023 21:18:41 LOCATE VREC 1505 S INDIANA, VERNON VPD RECORDS BUREA *RECD 21:22:05 21:49:24 * Denotes Primary Unit 12/05/2023 00:19:27 Page 3 of 3 . . Item 6 Page 12 of 57 VERNON POLICE DEPARTMENT Call Log Report Type All Unit Times and Location with OCA's First Date: 12/05/2023 Jurisdiction: VERNON Last Date: 12/05/2023 CallerCall Number Disp Ten Received Code Complaint Address Unit Time Dep Officer Unit Dispatch Enroute OnScene Depart Arrive Remove Comp 20231223606 12/05/2023 03:07:52 459A FARHAN ENTERPRISES 2916 S SANTA FE AV, VERNON RPT Department OCA Number VPD CR23-1905 RMS Juris CA0197300 VPD NEWTON,TODD *47W 03:09:01 32 03:09:03 40E 03:09:19 03:09:22 03:09:36 03:14:56 03:12:03 03:13:31 03:26:56 03:26:56 03:26:56 VPD OURIQUE,CARLO VPD ESCARPE,ALAN 20231223615 12/05/2023 07:02:50 902T DONNA NAVARRO E 25TH // SANTA FE AVE, VERNON *47W 07:06:42 RPT Department OCA Number VPD RMS Juris CA0197300CR23-1906 VPD ESCOBEDO,ALEX 07:08:43 07:12:25 07:33:55 20231223616 12/05/2023 07:06:53 459R RPT CONSTRUCTION SITE 4885 52ND PL, VERNON Department OCA Number VPD RMS Juris CA0197300CR23-1907 VPD HERNANDEZ,RUD VPD HERNANDEZ,RUD *40E 07:08:59 44E 07:09:41 07:17:21 07:17:25 07:22:23 07:50:53 08:26:16 12:52:40 20231223618 12/05/2023 07:09:11 BAILEY 44 INC 4700 S BOYLE AV, VERNON RPT Department OCA Number VPD 07:34:00 RMS Juris CA0197300459RCR23-1908 VPD ESCOBEDO,ALEX *47W 07:42:42 20231223625 12/05/2023 11:59:37 901T RPT VERIZON WIRELESS 1-800-451-5242 E 46TH // SOTO, VERNON Department OCA Number VPD 12:00:34 RMS Juris CA0197300CR23-1909 VPD ESCOBEDO,ALEX VPD CEDENO,RUTH *47W 12:00:05 12:04:19 12:02:45 12:04:15 12:11:35 12:06:26 12:25:53 2P8 40E 43 12:48:53 VPD HERNANDEZ,RUD VPD VILLEGAS,RICHAR VPD MANNINO,NICHOL VPD RAMOS,JOSE 12:01:13 12:52:39 12:52:39 12:52:40 12:52:40 5D35 S6 12:02:12 20231223637 12/06/2023 00:21:31 Page 1 of 2 . . Item 6 Page 13 of 57 VERNON POLICE DEPARTMENT Call Log Report Type All Unit Times and Location with OCA's First Date: 12/05/2023 Jurisdiction: VERNON Last Date: 12/05/2023 CallerCall Number Disp Ten Received Code Complaint Address Unit Time Dep Officer Unit Dispatch Enroute OnScene Depart Arrive Remove Comp 20231223637 12/05/2023 15:31:15 T-MOBILE USA 888-662-4662 OPT 4 4560 E 26TH, VERNON RPT Department OCA Number VPD RMS Juris CA0197300901TORCR23-1910 VPD HERNANDEZ,RUD *40E 15:31:50 15:33:53 17:07:42 20231223651 12/05/2023 22:01:59 UNATTACHEDTR VI Department OCA Number VPD CR23-1911 RMS Juris CA01973004949 E DISTRICT BL, VERNONRPT VPD CERDA,PAUL,JR *43E 22:01:59 23:01:51 20231223654 12/05/2023 23:13:51 TRAFFIC STOP RPT Department OCA Number VPD CR23-1912 RMS Juris CA01973002800 S SANTA FE AV, VERNON1015 CITE VPD OURIQUE,CARLO VPD CERDA,PAUL,JR *32 23:13:51 23:15:51 23:32:55 23:32:5543E * Denotes Primary Unit 12/06/2023 00:21:31 Page 2 of 2 . . Item 6 Page 14 of 57 VERNON POLICE DEPARTMENT Call Log Report Type All Unit Times and Location with OCA's First Date: 12/06/2023 Jurisdiction: VERNON Last Date: 12/06/2023 CallerCall Number Disp Ten Received Code Complaint Address Unit Time Dep Officer Unit Dispatch Enroute OnScene Depart Arrive Remove Comp 20231223662 12/06/2023 01:12:06VI Department OCA Number CR23-1913 RMS Juris CA0197300VCKE 52D // SANTA FE AV, VERNON VPD OURIQUE,CARLO *32 RPT VPD 01:12:06 01:41:35 20231223690 12/06/2023 10:13:54 LOCATE LAPD-NEWTON COMPTON // 20TH, LOS ANGELES *RECD VREC VPD RECORDS BUREA 10:21:31 12:03:58 20231223703 12/06/2023 14:32:22 484R TORGOM TRADING 5175 S SOTO, VERNON RPT Department OCA Number VPD CR23-1914 RMS Juris CA0197300 VPD GODOY,RAYMON VPD VELASQUEZ,RICH *38E 43W 14:43:14 14:44:38 14:44:40 14:49:50 15:06:31 20231223705 12/06/2023 14:49:33 VCK RPT Department OCA Number VPD CR23-1915 RMS Juris CA01973003420 E VERNON AV, VERNONVS VPD GODOY,RAYMON VPD CEDENO,RUTH *38E 2P8 14:49:33 15:08:07 15:44:42 15:36:56 * Denotes Primary Unit 12/07/2023 00:05:02 Page 1 of 1 . . Item 6 Page 15 of 57 VERNON POLICE DEPARTMENT Call Log Report Type All Unit Times and Location with OCA's First Date: 12/07/2023 Jurisdiction: VERNON Last Date: 12/07/2023 CallerCall Number Disp Ten Received Code Complaint Address Unit Time Dep Officer Unit Dispatch Enroute OnScene Depart Arrive Remove Comp 20231223753 12/07/2023 08:26:55 REC NU VIEW CHROME 3308 BANDINI BL, VERNON VREC Department OCA Number RMS JurisRPT VI VPD VPD VPD CR23-1917 CR23-1918 CR23-1921 CA0197300 CA0197300 CA0197300 VPD FLORES,TERESA *38E 2P8 08:26:55 10:48:10 08:43:22 10:18:41 11:49:04 VPD CEDENO,RUTH VPD CERDA,EUGENIO MR C TOW 10:37:33 09:48:13 11:17:30 44W 10:54:00 11:07:58MR C TOW 09:06:38 20231223756 12/07/2023 08:38:17 459R UNKNOWN 5502 ALCOA AV, VERNON *40E RPT Department OCA Number VPD RMS Juris CA0197300CR23-1916 VPD VELASQUEZ,RICH 08:53:43 08:57:23 10:13:52 13:23:55 20231223793 12/07/2023 12:33:58 487R MOTHER DENIMRPT Department OCA Number VPD RMS Juris CA01973002345 E 48TH, VERNON CR23-1919 VPD GODOY,RAYMON *47W 12:37:44 12:40:23 20231223807 12/07/2023 13:49:44 902T NX SUNRISE FOODS Department OCA Number VPD CR23-1920 RMS Juris CA01973002307 E 49TH, VERNONNRD VOID VPD GODOY,RAYMON *47W 13:52:40 13:53:02 13:55:50 15:54:19 15:36:14 20231223809 12/07/2023 14:14:53 REPO REPO Department OCA Number VPD RMS Juris CA01973005233 ALCOA AV, VERNON *RECD CR23-1922 VPD RECORDS BUREA 15:35:47 20231223832 12/07/2023 21:54:09 WARRANT 1015 180 N LOS ANGELES, LOS ANGELESRPT 12/08/2023 00:04:44 Page 1 of 2 . . Item 6 Page 16 of 57 VERNON POLICE DEPARTMENT Call Log Report Type All Unit Times and Location with OCA's First Date: 12/07/2023 Jurisdiction: VERNON Last Date: 12/07/2023 CallerCall Number Disp Ten Received Code Complaint Address Unit Time Dep Officer Unit Dispatch Enroute OnScene Depart Arrive Remove Comp 20231223832 12/07/2023 21:54:091015 WARRANT 180 N LOS ANGELES, LOS ANGELES VPD REDONA,BRYAN *40E 21:58:31 RPT 21:58:31 22:16:48 23:59:13 20231223833 12/07/2023 23:14:23 451R AT&T MOBILITY 800-635-6840 SAINT CHARLES // 45TH, VERNON *47 23:15:05 RPT Department OCA Number VPD RMS Juris CA0197300VICR23-1924 VPD LANDA,RAFAEL VPD CAM,PATRICK VIRTELSTOW 23:15:06 23:17:39 23:54:0543W VIERTELTOW 23:48:51 23:48:51 20231223834 12/07/2023 23:18:27 925 REED ELECTRIC 5503 S BOYLE AV, VERNON RPT Department OCA Number VPD CR23-1923 RMS Juris CA0197300ADV PAWC SOW VPD CAM,PATRICK *43W 23:20:21 23:22:30 23:48:37 23:54:03 * Denotes Primary Unit 12/08/2023 00:04:44 Page 2 of 2 . . Item 6 Page 17 of 57 VERNON POLICE DEPARTMENT Call Log Report Type All Unit Times and Location with OCA's First Date: 12/08/2023 Jurisdiction: VERNON Last Date: 12/08/2023 CallerCall Number Disp Ten Received Code Complaint Address Unit Time Dep Officer Unit Dispatch Enroute OnScene Depart Arrive Remove Comp 20231223849 12/08/2023 05:53:30 BNSF RAILWAY POLICE 1990 E WAHINGTON BLVD, LOS ANGELES VREC LOCATERPT 20231223853 12/08/2023 07:43:42 917A VS Department OCA Number VPD RMS Juris CA0197300E 50TH // GIFFORD AV, VERNON CR23-1925 VPD HERNANDEZ,MEL VPD VELASQUEZ,RICH *38E 07:45:37 40W 08:30:07 07:45:38 07:52:53 08:35:07 08:30:14 08:30:12VPD RAMOS,SALVADO MR C TOW 43E 08:30:08 MR C TOW 08:06:23 08:06:46 08:17:59 09:05:07 20231223863 12/08/2023 10:34:14 459R LINEAGERPT Department OCA Number VPD VPD RMS Juris CA0197300 CA0197300 3269 E 44TH, VERNON CR23-1926 CR23-1927 VPD HERNANDEZ,MEL *38E 10:35:33 10:35:33 10:44:59 12:21:47 20231223880 12/08/2023 14:50:08 459VR JC SALESRPT Department OCA Number VPD RMS Juris CA01973002600 S SOTO, VERNON CR23-1928 VPD GODOY,RAYMON *44 14:52:12 14:52:13 15:07:06 15:19:54 15:07:04 16:10:28 16:10:27 16:10:28 VPD VELASQUEZ,RICH VPD RAMOS,SALVADO 40W 43E 14:53:24 20231223881 12/08/2023 15:31:17 476R PAPER SOURCE 4800 S SANTA FE AV, VERNON RPT Department OCA Number VPD RMS Juris CA0197300CR23-1929 VPD FLORES,TERESA *32W 15:34:01 15:34:02 15:54:19 16:40:45 20231223914 12/09/2023 00:01:47 Page 1 of 2 . . Item 6 Page 18 of 57 VERNON POLICE DEPARTMENT Call Log Report Type All Unit Times and Location with OCA's First Date: 12/08/2023 Jurisdiction: VERNON Last Date: 12/08/2023 CallerCall Number Disp Ten Received Code Complaint Address Unit Time Dep Officer Unit Dispatch Enroute OnScene Depart Arrive Remove Comp 20231223914 12/08/2023 23:04:11 BOVEH 1015 Department OCA Number VPD CR23-1930 RMS Juris CA0197300S ALAMEDA // 37TH, VERNONRPT VI VPD REDONA,BRYAN VPD OURIQUE,CARLO VPD LANDA,RAFAEL VIRTELSTOW *40W 23:05:03 23:05:26 23:10:37 23:09:10 23:07:43 23:36:09 1T8 44 23:05:27 23:25:33VIERTELTOW 23:25:30 * Denotes Primary Unit 12/09/2023 00:01:47 Page 2 of 2 . . Item 6 Page 19 of 57 VERNON POLICE DEPARTMENT Call Log Report Type All Unit Times and Location with OCA's First Date: 12/09/2023 Jurisdiction: VERNON Last Date: 12/09/2023 CallerCall Number Disp Ten Received Code Complaint Address Unit Time Dep Officer Unit Dispatch Enroute OnScene Depart Arrive Remove Comp 20231223919 12/09/2023 00:50:11 LAPD NEWTONVREC LOCATE COMPTON // 14TH, VERNONRPT 20231223922 12/09/2023 02:27:46 A487 WHITING-TURNERRPT Department OCA Number VPD CR23-1931 RMS Juris CA01973004710 S SANTA FE AV, VERNON VPD REDONA,BRYAN *40W 43E 44 02:28:49 02:37:03 02:28:51 02:30:05 02:38:40 02:31:28 03:09:13 03:09:13 03:09:13 VPD CAM,PATRICK VPD LANDA,RAFAEL 20231223956 12/09/2023 15:05:16 211 RANCHO FOODSNCE Department OCA Number VPD CR23-1932 RMS Juris CA01973002528 E 37TH, VERNONNRD ASST CKOK FI RPT VPD FLORES,TERESA *38W 15:06:57 15:07:32 15:26:27 15:26:35 15:07:34 15:08:41 15:53:48 15:53:47VPD VELASQUEZ,RICH VPD RAMOS,SALVADO VPD ESCARPE,ALAN VPD SOUSA,ROBERTO VPD HERNANDEZ,EDW 2Z8 40 15:27:19 43E 15:06:59 15:08:18 15:10:34 15:18:09 15:18:21 15:18:05 15:48:35 15:53:48 C1 S7 20231223988 12/09/2023 20:44:55 20002 T-MOBILE USA 888-662-4662 OPT 4RPT Department OCA Number VPD RMS Juris CA0197300S ATLANTIC BL // BANDINI BL, VERNONVM CR23-1933 VPD REDONA,BRYAN VPD CAM,PATRICK MR C TOW *31E 20:45:49 20:48:55 20:49:28 21:14:17 21:23:57 21:23:57 43 21:17:05 MR C TOW 21:05:53 21:05:53 20231223993 12/10/2023 02:55:51 Page 1 of 2 . . Item 6 Page 20 of 57 VERNON POLICE DEPARTMENT Call Log Report Type All Unit Times and Location with OCA's First Date: 12/09/2023 Jurisdiction: VERNON Last Date: 12/09/2023 CallerCall Number Disp Ten Received Code Complaint Address Unit Time Dep Officer Unit Dispatch Enroute OnScene Depart Arrive Remove Comp 20231223993 12/09/2023 21:16:15 DPTAST RPT Department OCA Number VPD RMS Juris CA0197300BANDINI BL // ATLANTIC BL, VERNON CR23-1934 VPD SALDANA,CARLO *40W 31E 43 21:17:00 21:24:36 21:17:06 21:24:42 22:26:55 22:26:54VPD REDONA,BRYAN VPD CAM,PATRICK 22:01:39 21:58:36VPD ENCINAS,ANTHON S3 20231224003 12/09/2023 23:10:18 RECKLESS DRV CITE Department OCA Number VPD CR23-1935 RMS Juris CA01973003730 E WASHINGTON BL, VERNONVI RPT 1015 VPD CAM,PATRICK VPD VILLEGAS,RICHAR *43 23:10:27 23:57:47 23:15:49 23:15:46 00:49:40 01:40:25 2T8 23:46:01 23:11:01 23:11:02 00:33:48 01:40:40 00:12:35 00:12:29 02:47:50 02:47:50 VPD REDONA,BRYAN VPD SALDANA,CARLO MR C TOW 31E 40W MR C TOW 00:33:48 * Denotes Primary Unit 12/10/2023 02:55:51 Page 2 of 2 . . Item 6 Page 21 of 57 VERNON POLICE DEPARTMENT Call Log Report Type All Unit Times and Location with OCA's First Date: 12/10/2023 Jurisdiction: VERNON Last Date: 12/10/2023 CallerCall Number Disp Ten Received Code Complaint Address Unit Time Dep Officer Unit Dispatch Enroute OnScene Depart Arrive Remove Comp 20231224011 12/10/2023 00:43:35 TRAFFIC STOP VPD OURIQUE,CARLO VPD SALDANA,CARLO 1015 Department OCA Number CR23-1936 RMS Juris CA01973004600 S SANTA FE AV, VERNONRPT VPD *1T8 40W 00:43:35 00:50:00 02:27:09 00:45:31 01:30:13 20231224024 12/10/2023 07:26:55 594 SIMPLY FRESH FRUIT 4383 EXCHANGE AV, VERNON *47 07:30:21 RPT Department OCA Number VPD RMS Juris CR23-1937 CA0197300 07:54:49 07:55:59 VPD 07:32:23 07:31:12 07:35:53 07:34:35 07:34:01 07:35:56 VPD ESCARPE,ALAN VPD GODOY,RAYMON 43W 44E 08:04:49 20231224025 12/10/2023 08:22:20 LAPD UNIOON PACIFIC AVE // DE LA TORRE WAY, LO 1015 WARRANT VPD ESCARPE,ALAN *43W 08:31:42 09:23:00 20231224026 12/10/2023 10:05:04 FOUND RPT Department OCA Number VPD CR23-1938 RMS Juris CA01973004305 S SANTA FE AV, VERNON VPD ESCARPE,ALAN *43W 10:05:47 11:58:45 20231224044 12/10/2023 20:45:27 901 VERIZON WIRELESS 1-800-451-5242 5500 S SANTA FE AV, VERNON RPT Department OCA Number VPD CR23-1939 RMS Juris CA0197300OR VPD REDONA,BRYAN VPD OURIQUE,CARLO VPD SALDANA,CARLO *44 32W 40E 20:46:51 20:58:56 21:46:37 21:46:3720:50:03 20:52:21 21:14:20 20231224050 12/10/2023 22:50:56 REC RPT Department OCA Number VPD RMS Juris CA0197300FRUITLAND AV // SOTO, VERNON *44 VREC CR23-1940 VPD REDONA,BRYAN 22:50:56 23:27:58 12/11/2023 05:22:30 Page 1 of 1 . . Item 6 Page 22 of 57 VERNON POLICE DEPARTMENT Call Log Report Type All Unit Times and Location with OCA's First Date: 12/11/2023 Jurisdiction: VERNON Last Date: 12/11/2023 CallerCall Number Disp Ten Received Code Complaint Address Unit Time Dep Officer Unit Dispatch Enroute OnScene Depart Arrive Remove Comp 20231224061 12/11/2023 03:04:20 VCK RPT Department OCA Number VPD RMS Juris CA01973002131 E 51ST, VERNON VPD OURIQUE,CARLO VI CR23-1941 *32W 03:04:20 03:33:03 20231224078 12/11/2023 08:44:58 484R FARM FRESH PRODUCE 4593 E 49TH, VERNON RPT Department OCA Number VPD RMS Juris CA0197300CR23-1942 VPD HERNANDEZ,RUD *43E 08:59:52 09:00:21 09:03:51 09:47:22 16:33:13 16:29:40 20231224109 12/11/2023 15:31:05 459VR RPT Department OCA Number VPD RMS Juris CA01973005525 S SANTA FE AV, VERNON *38W 15:31:53 CR23-1943 VPD GODOY,RAYMON 15:37:07 20231224110 12/11/2023 15:37:35 GTAR RPT Department OCA Number VPD RMS Juris CA01973002300 E 57TH, VERNON CR23-1944 VPD CERDA,EUGENIO *47 15:42:32 20231224120 12/11/2023 20:03:43 GTAR RPT Department OCA Number VPD RMS Juris CA01973004833 FRUITLAND AV, VERNON CR23-1946 VPD REYNA,JOSE S *47E 20:03:43 20:46:16 20231224121 12/11/2023 20:06:20 594R T-MOBILE USA, INC.RPT Department OCA Number CR23-1945 RMS Juris CA01973002425 E 30TH, VERNON VPD 20:12:01 20:17:09VPD NEWTON,TODD *44W 20:11:46 20:46:22 20231224129 12/11/2023 23:12:49 VCK VS Department OCA Number VPD RMS Juris CA01973005820 S ALAMEDA, VERNON *40 RPT CR23-1947 VPD OURIQUE,CARLO 23:12:49 23:33:47 12/12/2023 00:05:14 Page 1 of 2 . . Item 6 Page 23 of 57 VERNON POLICE DEPARTMENT Call Log Report Type All Unit Times and Location with OCA's First Date: 12/11/2023 Jurisdiction: VERNON Last Date: 12/11/2023 CallerCall Number Disp Ten Received Code Complaint Address Unit Time Dep Officer Unit Dispatch Enroute OnScene Depart Arrive Remove Comp 20231224129 12/11/2023 23:12:49 VCK VS Department OCA Number CR23-1947 RMS Juris CA01973005820 S ALAMEDA, VERNON VPD NEWTON,TODD 44W RPT VPD 23:12:51 23:14:49 23:33:47 * Denotes Primary Unit 12/12/2023 00:05:14 Page 2 of 2 . . Item 6 Page 24 of 57 VERNON POLICE DEPARTMENT Call Log Report Type All Unit Times and Location with OCA's First Date: 12/12/2023 Jurisdiction: VERNON Last Date: 12/12/2023 CallerCall Number Disp Ten Received Code Complaint Address Unit Time Dep Officer Unit Dispatch Enroute OnScene Depart Arrive Remove Comp 20231224162 12/12/2023 13:35:13 902T RPT Department OCA Number VPD RMS Juris CA0197300CHARTER AV // MAYWOOD AV, VERNON CR23-1948 VPD CERDA,EUGENIO VPD GODOY,RAYMON *47 13:36:32 13:38:33 13:41:43 13:38:31 14:19:02 38E 13:38:32 13:57:16 20231224168 12/12/2023 17:53:36 REC VREC Department OCA Number VPD RMS Juris CA0197300SANTA FE // CLARENDON, VERNON CR23-1949 VPD HERNANDEZ,RUD VPD GODOY,RAYMON VPD CERDA,EUGENIO *43W 38E 47 17:57:02 17:57:06 17:57:05 17:57:18 18:00:43 17:59:01 19:25:59 19:16:41 18:14:21 20231224177 12/12/2023 23:52:32 LOCATE VREC 15530 SALT LAKE, INDUSTRY *RECDVPD RECORDS BUREA 23:53:24 00:16:58 * Denotes Primary Unit 12/13/2023 00:20:48 Page 1 of 1 . . Item 6 Page 25 of 57 VERNON POLICE DEPARTMENT Call Log Report Type All Unit Times and Location with OCA's First Date: 12/13/2023 Jurisdiction: VERNON Last Date: 12/13/2023 CallerCall Number Disp Ten Received Code Complaint Address Unit Time Dep Officer Unit Dispatch Enroute OnScene Depart Arrive Remove Comp 20231224180 12/13/2023 02:54:23 REC VREC Department OCA Number VPD RMS Juris CA01973003737 S SOTO, VERNON VPD CERDA,PAUL,JR RPT CR23-1950 *44E 40W 47 02:59:54 03:03:40 03:05:28 03:01:44 03:07:42 03:07:44 05:02:34 05:02:34VPD NEWTON,TODD VPD REYNA,JOSE S 03:12:59 20231224191 12/13/2023 06:53:00 GTAR ALPHA ALUMINUM DOORSRPT Department OCA Number CR23-1951 RMS Juris CA01973002675 S SANTA FE AV, VERNON *32W 06:56:56 VPD VPD 06:56:59 07:11:11 07:51:01 20231224198 12/13/2023 07:42:15 902T RPT TATIANA Department OCA Number VPD RMS Juris CA0197300S ATLANTIC BL // BANDINI BL, VERNON CR23-1952 VPD GODOY,RAYMON VPD VELASQUEZ,RICH *32W 40E 07:51:05 07:53:40 07:51:19 08:42:13 12:25:42 20231224216 12/13/2023 11:21:51 901T RPT Department OCA Number VPD 11:22:47 11:23:12 RMS Juris CA0197300E VERNON AV // SOTO ST, VERNON CR23-1953 VPD CERDA,EUGENIO VPD GODOY,RAYMON *44 11:22:46 32W 11:24:45 11:23:43 12:17:28 20231224236 12/13/2023 15:12:41 917A MEGHAN LEONIS BL // ALCOA AV, VERNON RPT Department OCA Number VPD RMS JurisVSCR23-1954 CA0197300 15:49:08 15:28:30 VPD VELASQUEZ,RICH VPD CERDA,EUGENIO *40E 15:13:48 44 15:13:52 15:14:33 15:14:27 15:17:46 15:17:45 20231224238 12/13/2023 15:45:33 GTAR CAPITOL LOGISTICS 3223 E 46TH, VERNON RPT Department OCA Number VPD RMS Juris CA0197300CR23-1956 VPD VELASQUEZ,RICH *40E 15:49:16 15:49:47 15:54:08 16:20:58 12/14/2023 00:02:22 Page 1 of 2 . . Item 6 Page 26 of 57 VERNON POLICE DEPARTMENT Call Log Report Type All Unit Times and Location with OCA's First Date: 12/13/2023 Jurisdiction: VERNON Last Date: 12/13/2023 CallerCall Number Disp Ten Received Code Complaint Address Unit Time Dep Officer Unit Dispatch Enroute OnScene Depart Arrive Remove Comp 20231224240 12/13/2023 15:58:50REPO AMERICAN INTEGRATED SERVICES 2800 E 50TH, VERNON Department OCA Number VPD RMS Juris CA0197300REPOCR23-1955 VPD RECORDS BUREA *RECD 16:01:09 16:36:35 20231224248 12/13/2023 17:02:33 GTAR LOLA 3226 E 44TH, VERNON *32W 40E 17:56:54 RPT VREC VPD GODOY,RAYMON 17:41:14 17:56:54 17:46:22 18:08:12 18:32:18 VPD VELASQUEZ,RICH 18:35:46 * Denotes Primary Unit 12/14/2023 00:02:22 Page 2 of 2 . . Item 6 Page 27 of 57 VERNON POLICE DEPARTMENT Call Log Report Type All Unit Times and Location with OCA's First Date: 12/14/2023 Jurisdiction: VERNON Last Date: 12/14/2023 CallerCall Number Disp Ten Received Code Complaint Address Unit Time Dep Officer Unit Dispatch Enroute OnScene Depart Arrive Remove Comp 20231224269 12/14/2023 01:23:20 NAVARROS TOW 19465 E WALNUT DR, CITY OF INDUSTRY VPD RECORDS BUREA *RECD VREC LOCATE 01:26:12 02:02:34 20231224279 12/14/2023 07:13:22 ASSISTFD LAM SHENG KEE WEST 3390 E SLAUSON AV, VERNON RPT Department OCA Number VPD RMS Juris CA0197300BP98CR23-1957 VPD VELASQUEZ,RICH VPD HERNANDEZ,RUD *40E 2A8 07:14:20 07:22:21 09:17:13 07:24:31 08:33:22 08:38:30 08:48:14 08:48:17 08:48:21 08:48:23 09:17:56 09:56:36 09:54:01 08:52:24VPD CEDENO,RUTH VPD RAMOS,SALVADO VPD 2P8 07:18:28 08:27:29 08:27:54 43W 44 09:56:37 09:56:37 09:56:37 09:56:38 09:56:38 09:56:38 09:56:39 VPD MARTINEZ,GABRI VPD LUCAS,JASON VPD MADRIGAL,ALFON VPD MANNINO,NICHOL VPD ESTRADA,IGNACI 5D30 5D31 5D33 5D35 S1 20231224301 12/14/2023 13:23:26 459VR HERMOZO TEXTILE 3300 BANDINI BL, VERNON *40E 13:25:25 RPT Department OCA Number VPD RMS Juris CA0197300CR23-1958 VPD VELASQUEZ,RICH VPD HERNANDEZ,RUD VPD FLORES,TERESA 13:25:27 13:32:26 13:31:01 13:46:16 14:14:41 14:14:42 2A8 44 13:47:30 13:34:28 20231224312 12/14/2023 15:40:44 REC VREC Department OCA Number VPD VPD RMS Juris CA0197300 CA0197300 3873 DOWNEY RD, VERNON CR23-1959 CR23-1960 VPD FLORES,TERESA VPD RAMOS,SALVADO *44 15:40:44 17:00:03 17:24:31 43W 17:12:26 * Denotes Primary Unit 12/15/2023 05:57:01 Page 1 of 1 . . Item 6 Page 28 of 57 VERNON POLICE DEPARTMENT Call Log Report Type All Unit Times and Location with OCA's First Date: 12/15/2023 Jurisdiction: VERNON Last Date: 12/15/2023 CallerCall Number Disp Ten Received Code Complaint Address Unit Time Dep Officer Unit Dispatch Enroute OnScene Depart Arrive Remove Comp 20231224362 12/15/2023 08:18:44 MARIA 4675 52D DR, VERNON S/A 214 RPT Department OCA Number VPD RMS Juris CA0197300273.51015 CR23-1962 VPD ESTRADA,IGNACI *S1 38W 40 08:23:11 09:27:10 08:24:42 09:29:59 09:17:19 08:42:30 08:24:40 09:19:30 10:27:29 10:27:28VPD HERNANDEZ,MEL VPD VELASQUEZ,RICH VPD RAMOS,SALVADO VPD RAMOS,JOSE 09:18:59 09:17:11 43E S6 08:29:36 08:23:16 10:27:28 10:27:29VPD HERNANDEZ,EDW S7 20231224363 12/15/2023 08:30:59 902TR ENRIQUE LEONIS BL // BOYLE AV, VERNON RPT Department OCA Number VPD CR23-1961 RMS Juris CA0197300 VPD HERNANDEZ,MEL VPD VELASQUEZ,RICH *38W 40 08:40:38 08:41:48 09:21:00 09:27:06 09:45:57 20231224370 12/15/2023 14:30:32 925 SC FUEL 5415 S SANTA FE AV, VERNON RPT Department OCA Number VPD RMS Juris CA0197300NCECR23-1963 VPD HERNANDEZ,MEL VPD VELASQUEZ,RICH *38W 40 14:32:14 14:34:48 14:34:24 15:29:27 15:29:2714:33:17 20231224383 12/15/2023 21:38:26 901T T-MOBILE USA 888-662-4662 OPT 4 S ALAMEDA // 37TH ST, VERNON 1015 Department OCA Number VPD CR23-1964 RMS Juris CA0197300RPT VI VPD REDONA,BRYAN *44W 21:40:01 43E 21:40:05 21:41:55 21:40:06 22:49:02 21:44:25 21:43:53 21:41:15 23:06:35 VPD SALDANA,CARLO VPD CAM,PATRICK MR C TOW 47 21:40:03 22:45:23 MR C TOW * Denotes Primary Unit 12/16/2023 00:00:53 Page 1 of 1 . . Item 6 Page 29 of 57 VERNON POLICE DEPARTMENT Call Log Report Type All Unit Times and Location with OCA's First Date: 12/16/2023 Jurisdiction: VERNON Last Date: 12/16/2023 CallerCall Number Disp Ten Received Code Complaint Address Unit Time Dep Officer Unit Dispatch Enroute OnScene Depart Arrive Remove Comp 20231224411 12/16/2023 09:33:25 MISPLOCATE MIGUEL - PUBLIC WORKSRPT SEVILLE AV // 45TH, VERNON VPD HERNANDEZ,MEL VPD ESCARPE,ALAN VPD RAMOS,SALVADO *38W 09:34:38 09:34:38 09:35:21 09:35:38 09:36:25 09:37:34 10:26:58 40E 43 09:58:06 09:56:14 20231224420 12/16/2023 12:57:19 TRAFFIC STOP 1015 Department OCA Number VPD CR23-1965 RMS Juris CA0197300S DISTRICT BL // ATLANTIC BL, VERNONCITE RPT VPD ESCARPE,ALAN *40E 12:57:21 13:17:37 18:18:44 20231224428 12/16/2023 16:40:12 240R VERNON POLICE DEPT 27TH // SANTA FE, VERNON RPT Department OCA Number VPD RMS Juris CA0197300CR23-1966 VPD HERNANDEZ,MEL *38W 16:40:31 17:11:00 20231224434 12/16/2023 19:15:43 BOVEH VERIZON WIRELESS 1-800-451-5242 3870 SEVILLE AV, VERNON RPT Department OCA Number VPD CR23-1967 RMS Juris CA01973001015 VI VPD REDONA,BRYAN VPD CAM,PATRICK VIRTELSTOW *44W 43W 19:17:52 19:18:43 20:27:07 19:24:08 19:20:18 20:44:33 22:00:52 20:56:00 20:56:02VIERTELTOW 20:27:06 20231224437 12/16/2023 20:23:33 DUI CKPT RPT Department OCA Number VPD CR23-1968 RMS Juris CA0197300S SANTA FE AV // 37TH, VERNON VPD GONZALEZ,BRITT VPD LANDA,RAFAEL VPD REDONA,BRYAN *38E 3L1 20:24:46 20:26:23 20:25:03 20:25:05 40E 20:26:21 20231224440 12/17/2023 00:15:42 Page 1 of 2 . . Item 6 Page 30 of 57 VERNON POLICE DEPARTMENT Call Log Report Type All Unit Times and Location with OCA's First Date: 12/16/2023 Jurisdiction: VERNON Last Date: 12/16/2023 CallerCall Number Disp Ten Received Code Complaint Address Unit Time Dep Officer Unit Dispatch Enroute OnScene Depart Arrive Remove Comp 20231224440 12/16/2023 20:53:29 DUITRAFFIC 1015 Department OCA Number VPD CR23-1969 RMS Juris CA0197300E 28TH // SANTA FE AV, VERNONRPT VI VPD REDONA,BRYAN *40E 20:53:29 20:59:47 22:14:53 23:22:08 VPD CAM,PATRICK MR C TOW 43W 20:56:06 22:04:03 22:26:59 MR C TOW 22:03:48 22:26:57 * Denotes Primary Unit 12/17/2023 00:15:42 Page 2 of 2 . . Item 6 Page 31 of 57 VERNON POLICE DEPARTMENT Call Log Report Type All Unit Times and Location with OCA's First Date: 12/17/2023 Jurisdiction: VERNON Last Date: 12/17/2023 CallerCall Number Disp Ten Received Code Complaint Address Unit Time Dep Officer Unit Dispatch Enroute OnScene Depart Arrive Remove Comp 20231224453 12/17/2023 02:01:34 242 T-MOBILE USA 888-662-4662 OPT 4 S SANTA FE AV // 49TH, VERNON RPT Department OCA Number VPD RMS Juris CA0197300CR23-1970 VPD GONZALEZ,BRITT *38E 43W 44W 02:02:18 02:05:39 02:04:16 02:09:07 03:25:07 03:25:07 VPD CAM,PATRICK 02:40:06 VPD SALDANA,CARLO 02:02:50 20231224467 12/17/2023 07:43:55 902T ART 5201 S DISTRICT BL, VERNON *38E 07:45:35 40W 47 07:45:45 RPT Department OCA Number VPD RMS Juris CA0197300CR23-1971 VPD HERNANDEZ,MEL VPD ESCARPE,ALAN 07:46:10 07:46:14 07:50:42 07:48:54 08:19:45 08:19:45 VPD 07:46:16 20231224479 12/17/2023 21:17:27 20002 STERIGENICS 4900 GIFFORD AV, VERNON RPT Department OCA Number VPD RMS Juris CA0197300CR23-1972 VPD NEWTON,TODD VPD GONZALEZ,BRITT *40E 21:19:39 38W 21:19:41 21:20:09 21:20:11 21:24:21 21:54:14 21:20:15 * Denotes Primary Unit 12/17/2023 23:59:12 Page 1 of 1 . . Item 6 Page 32 of 57 VERNON POLICE DEPARTMENT Call Log Report Type All Unit Times and Location with OCA's First Date: 12/18/2023 Jurisdiction: VERNON Last Date: 12/18/2023 CallerCall Number Disp Ten Received Code Complaint Address Unit Time Dep Officer Unit Dispatch Enroute OnScene Depart Arrive Remove Comp 20231224507 12/18/2023 04:35:33 5150 RPT Department OCA Number VPD RMS Juris CA01973003720 S SANTA FE AV, VERNON CR23-1973 VPD GONZALEZ,BRITT *38W 40E 44 04:35:33 04:49:03 04:42:51 04:49:15 07:36:49 VPD NEWTON,TODD VPD SALDANA,CARLO VPD ENCINAS,ANTHON 05:13:07 04:35:35 04:47:52 05:20:07 05:20:16S3 20231224522 12/18/2023 08:09:02 DOA ARCADIA 3225 E WASHINGTON BL, VERNON RPT Department OCA Number VPD RMS Juris CA0197300CR23-1974 VPD CERDA,EUGENIO VPD CEDENO,RUTH *47 08:09:39 08:12:49 08:25:48 08:10:37 08:12:50 08:25:48 08:14:17 08:13:25 08:25:51 09:09:02 09:09:08 08:39:05 12:31:28 2P8 40E 12:03:50 12:58:27 08:45:26 09:11:19 11:47:08 12:31:40 12:13:34 VPD HERNANDEZ,RUD VPD GODOY,RAYMON VPD ESCOBEDO,ALEX VPD MACIEL,CYNTHIA VPD MANNINO,NICHOL VPD RAMOS,JOSE 43W 44W 5D23 5D35 S6 08:11:52 20231224535 12/18/2023 13:36:02 STERIGENICS 4900 GIFFORD AV, VERNON VPD HERNANDEZ,RUD *40E 13:41:03 RPT Department OCA Number VPD RMS Juris CA0197300487RCR23-1975 13:41:28 13:50:59 14:13:01 20231224539 12/18/2023 14:08:47 PLATE SEVEN STAR INTL.RPT Department OCA Number VPD RMS Juris CA01973003011 BANDINI BL, VERNON CR23-1977 VPD HERNANDEZ,RUD VPD CEDENO,RUTH *40E 14:13:04 14:13:31 14:20:06 14:31:01 14:33:00 2P8 16:22:57 20231224541 12/18/2023 14:29:24 902T RPT Department OCA Number VPD CR23-1976 RMS Juris CA0197300CHARTER AV // DOWNEY RD, VERNON 12/19/2023 01:05:54 Page 1 of 2 . . Item 6 Page 33 of 57 VERNON POLICE DEPARTMENT Call Log Report Type All Unit Times and Location with OCA's First Date: 12/18/2023 Jurisdiction: VERNON Last Date: 12/18/2023 CallerCall Number Disp Ten Received Code Complaint Address Unit Time Dep Officer Unit Dispatch Enroute OnScene Depart Arrive Remove Comp 20231224541 12/18/2023 14:29:24RPT Department OCA Number VPD RMS Juris CA0197300902TCHARTER AV // DOWNEY RD, VERNON VPD RECORDS BUREA *RECD CR23-1976 14:29:56 14:57:44 20231224545 12/18/2023 15:29:46 902T ATI 2622 S ALAMEDA, VERNON *40E 16:15:25 38E RPT Department OCA Number VPD 16:15:37 RMS Juris CA0197300CR23-1979 VPD HERNANDEZ,RUD 16:20:59 VPD HERNANDEZ,RUD 16:20:58 17:00:47 19:29:51 17:23:57 20231224547 12/18/2023 15:47:41 314 JAMES SEVILLE AV // VERNON AV, VERNON RPT Department OCA Number VPD RMS Juris CA0197300CR23-1978 VPD RAMOS,JOSE VPD GODOY,RAYMON VPD CERDA,EUGENIO *S6 15:50:56 15:51:44 18:31:00 15:55:48 15:55:08 16:17:08 43W 15:51:44 47 18:45:13 20231224549 12/18/2023 17:10:19 REPO RPT Department OCA Number VPD RMS Juris CA01973002324 E 49TH, VERNON VPD RECORDS BUREA *RECD REPO CR23-1980 17:12:39 * Denotes Primary Unit 12/19/2023 01:05:54 Page 2 of 2 . . Item 6 Page 34 of 57 VERNON POLICE DEPARTMENT Call Log Report Type All Unit Times and Location with OCA's First Date: 12/19/2023 Jurisdiction: VERNON Last Date: 12/19/2023 CallerCall Number Disp Ten Received Code Complaint Address Unit Time Dep Officer Unit Dispatch Enroute OnScene Depart Arrive Remove Comp 20231224577 12/19/2023 06:55:46 901TR TOYOTA TELEMATICS CALL CENTER 2788 E VERNON AV, VERNON RPT Department OCA Number VPD RMS JurisORCR23-1981 CA0197300 07:32:28 07:32:31 VPD GONZALEZ,BRITT VPD ESCARPE,ALAN *38W 06:58:12 32E 06:58:12 07:02:22 07:00:36 20231224591 12/19/2023 10:26:11 140 CARDLOCK FUEKING 5415 S SANTA FE AV, VERNON *2STOF 10:36:47 SUP VPD ESCOBEDO,ALEX 10:36:48 10:38:14 11:30:07 20231224594 12/19/2023 12:12:54 415 AMPMRPT Department OCA Number VPD CR23-1983 RMS Juris CA01973003031 E VERNON AV, VERNONCITE 1015 VPD ESCARPE,ALAN VPD GODOY,RAYMON *32E 12:14:30 12:14:55 12:41:13 12:14:56 12:41:14 14:05:11 13:51:23 13:51:26 13:52:46 13:50:38 15:10:40 15:10:4038W 40VPD HERNANDEZ,RUD VPD LUCAS,JASON VPD MADRIGAL,ALFON VPD MANNINO,NICHOL VPD RAMOS,JOSE 15:04:53 5D31 5D33 5D35 S6 14:04:36 14:04:34 14:04:31 15:05:07 20231224595 12/19/2023 12:38:43 FOUND STONE HARBOR 5015 E DISTRICT BL, VERNON RPT Department OCA Number CR23-1982 RMS Juris CA0197300VPD 12:41:40 12:47:51VPD HERNANDEZ,RUD *40 13:43:30 20231224598 12/19/2023 15:11:07 REC VREC Department OCA Number VPD RMS Juris CA0197300GRANDE VISTA AV // HOLABIRD AV, VERNONRPT CR23-1984 VPD HERNANDEZ,RUD VPD ESCARPE,ALAN VPD GODOY,RAYMON *40 15:11:07 15:14:30 15:14:32 15:37:37 32E 15:12:15 38W 15:12:16 16:03:39 16:03:37 12/20/2023 01:10:17 Page 1 of 1 . . Item 6 Page 35 of 57 VERNON POLICE DEPARTMENT Call Log Report Type All Unit Times and Location with OCA's First Date: 12/20/2023 Jurisdiction: VERNON Last Date: 12/20/2023 CallerCall Number Disp Ten Received Code Complaint Address Unit Time Dep Officer Unit Dispatch Enroute OnScene Depart Arrive Remove Comp 20231224629 12/20/2023 01:42:02 QX LOGISTICS 5685 ALCOA AV, VERNON RPT Department OCA Number VPD CR23-1985 RMS Juris CA0197300GTAR VPD HERNANDEZ,MEL VPD NEWTON,TODD *44 01:44:35 47 01:44:36 01:48:27 01:48:35 03:04:59 02:05:53 20231224644 12/20/2023 08:25:11 PRINT SYSTEM INC 3310 FRUITLAND AV, VERNON VPD VELASQUEZ,RICH *43E 08:27:35 VPD CEDENO,RUTH 2P8 RPCB Department OCA Number VPD RMS Juris CA0197300GTARRPTCR23-1986 08:27:53 09:17:27 08:39:19 09:52:06 08:54:33 10:04:10 20231224657 12/20/2023 11:00:23 MR60 RPT UPS 3333 DOWNEY RD, VERNON Department OCA Number VPD RMS Juris CA0197300CR23-1987 VPD CERDA,EUGENIO VPD HERNANDEZ,RUD *47W 32W 11:01:57 11:05:23 11:30:49 11:30:49 20231224659 12/20/2023 11:31:05 REPO UKNOWN 2658 E VERNON AV, VERNON *RECD REPO Department OCA Number VPD RMS Juris CA0197300CR23-1988 VPD RECORDS BUREA 12:22:49 12:35:59 20231224676 12/20/2023 15:50:41 594R RPT WELLS FARGO 4580 PACIFIC BL, VERNON Department OCA Number VPD CR23-1989 RMS Juris CA0197300 VPD VELASQUEZ,RICH VPD HERNANDEZ,RUD *43E 32W 15:53:23 15:53:49 15:53:51 15:56:58 16:39:32 20231224679 12/20/2023 17:54:00 902T CAP ROH LEONIS BL // PACIFIC BL, VERNON RPT Department OCA Number VPD RMS Juris CA0197300CR23-1990 VPD CERDA,EUGENIO VPD HERNANDEZ,RUD *47W 32W 17:56:11 17:57:05 18:00:27 19:01:19 18:41:56 12/21/2023 06:42:07 Page 1 of 2 . . Item 6 Page 36 of 57 VERNON POLICE DEPARTMENT Call Log Report Type All Unit Times and Location with OCA's First Date: 12/20/2023 Jurisdiction: VERNON Last Date: 12/20/2023 CallerCall Number Disp Ten Received Code Complaint Address Unit Time Dep Officer Unit Dispatch Enroute OnScene Depart Arrive Remove Comp 20231224679 12/20/2023 17:54:00 CAP ROH LEONIS BL // PACIFIC BL, VERNON VPD GODOY,RAYMON 38W RPT Department OCA Number VPD RMS Juris CA0197300902TCR23-1990 19:00:33 19:02:52 19:29:23 20231224690 12/20/2023 22:30:29 PENGUIN FOODS 4400 ALCOA AV, VERNON VPD CERDA,PAUL,JR *40E 22:38:55 RPT Department OCA Number VPD RMS Juris CA0197300GTARCR23-1991 22:38:56 22:39:14 23:31:00 01:13:27 20231224693 12/20/2023 23:46:14 REPO AMERICAN TRADINGREPO Department OCA Number VPD RMS Juris CA01973004159 BANDINI BL, VERNON CR23-1992 VPD RECORDS BUREA *RECD 23:48:27 * Denotes Primary Unit 12/21/2023 06:42:07 Page 2 of 2 . . Item 6 Page 37 of 57 VERNON POLICE DEPARTMENT Call Log Report Type All Unit Times and Location with OCA's First Date: 12/21/2023 Jurisdiction: VERNON Last Date: 12/21/2023 CallerCall Number Disp Ten Received Code Complaint Address Unit Time Dep Officer Unit Dispatch Enroute OnScene Depart Arrive Remove Comp 20231224704 12/21/2023 05:05:21AM 594 MCDONALD`S RESTAURANTS 3737 S SOTO, VERNON RPT Department OCA Number VPD RMS Juris CA0197300CR23-1993 VPD GODOY,RAYMON VPD LANDA,RAFAEL VPD ONOPA,DANIEL *38W 05:07:10A 47 05:07:12A S2 05:07:46AM 05:11:16AM 05:07:48AM 05:08:00AM 05:08:17AM 05:12:37AM 05:34:58A 05:35:20AM 05:34:53A 20231224710 12/21/2023 08:55:18AM PEDCK 1015 E 55TH // ALAMEDA, VERNONRPT VPD FLORES,TERESA VPD VELASQUEZ,RICH *47 08:55:18AM 10:21:48AM 43W 08:55:21AM 08:56:26AM 09:38:58A 20231224720 12/21/2023 11:13:45AM 261R JANET MANZILLA E 54TH // BICKETT, VERNON RPT Department OCA Number VPD RMS Juris CA0197300CR23-1996 VPD FLORES,TERESA VPD VELASQUEZ,RICH *47 43W 11:31:06AM 11:45:37AM 01:34:54PM 04:56:16PM 01:34:59P VPD LUCAS,JASON 5D31 5D33 11:54:34AM 04:56:16PM 04:56:16PMVPD MADRIGAL,ALFON 11:54:37AM 20231224722 12/21/2023 11:38:12AM THANG FRUITLAND AV // CUDAHY, VERNON RPT Department OCA Number CR23-1995 RMS Juris CA019730020002VPD 11:40:34AM 11:45:35AMVPD RAMOS,SALVADO *40E 12:39:23PM 20231224725 12/21/2023 01:22:27PM 920PR RPT Department OCA Number CR23-1997 RMS Juris CA0197300FRUITLAND AV // GIFFORD AV, VERNON VPD 01:24:41PM 01:35:02PM 01:44:17PM VPD RAMOS,SALVADO VPD REYNA,JOSE S VPD VELASQUEZ,RICH *40E 2STOF 43W 01:35:58P 02:46:39PM 01:35:05PM 01:41:16PM 01:44:32P 20231224735 12/22/2023 04:55:34 Page 1 of 2 . . Item 6 Page 38 of 57 VERNON POLICE DEPARTMENT Call Log Report Type All Unit Times and Location with OCA's First Date: 12/21/2023 Jurisdiction: VERNON Last Date: 12/21/2023 CallerCall Number Disp Ten Received Code Complaint Address Unit Time Dep Officer Unit Dispatch Enroute OnScene Depart Arrive Remove Comp 20231224735 12/21/2023 03:31:58PM MARIA ARANA E 44TH // ALCOA AV, VERNON VPD RAMOS,SALVADO *40E RPT Department OCA Number VPD CR23-1998 03:35:35PM 03:45:44PM RMS Juris CA0197300A211R 04:31:15PM 20231224744 12/21/2023 07:48:24PM GTAR whole foods 5000 PACIFIC BL, VERNON RPT Department OCA Number CR23-1999 RMS Juris CA0197300VPD 07:50:11PMVPD CERDA,PAUL,JR VPD REDONA,BRYAN *40W 07:50:10P 43E 08:30:27P 07:53:10PM 07:57:41PM 08:41:34PM * Denotes Primary Unit 12/22/2023 04:55:34 Page 2 of 2 . . Item 6 Page 39 of 57 VERNON POLICE DEPARTMENT Call Log Report Type All Unit Times and Location with OCA's First Date: 12/22/2023 Jurisdiction: VERNON Last Date: 12/22/2023 CallerCall Number Disp Ten Received Code Complaint Address Unit Time Dep Officer Unit Dispatch Enroute OnScene Depart Arrive Remove Comp 20231224793 12/22/2023 09:46:55 4305 SANTA FE BANDINI BL // DOWNEY RD, VERNON VPD RAMOS,SALVADO *40W VPD HERNANDEZ,MEL 38E 09:59:46 RPT Department OCA Number VPD RMS Juris CA019730020002RCR23-2000 09:48:47 10:02:03 09:53:14 09:59:49 10:55:06 20231224798 12/22/2023 10:50:11 FU 1015 1469 ECHO PARK, VERNONVI VPD MADRIGAL,ALFON *5D33 10:50:11 14:54:40 10:50:50 12:29:07 15:25:53 15:25:53 15:25:53 VPD FLORES,TERESA VPD LUCAS,JASON VIRTELSTOW 47 5D31 14:48:18 12:06:48VIERTELTOW 12:06:47 14:53:54 20231224807 12/22/2023 16:44:54 LOCATE VREC MONTEBELLO PD 1437 BLUFF RD, MONTEBELLO 20231224816 12/22/2023 20:04:02 DUI CKPT RPT Department OCA Number VPD RMS Juris CA0197300S SOTO // 37TH, VERNON *S5 CR23-2001 VPD GAYTAN,LORENZ 20:04:02 20231224821 12/22/2023 21:52:23 PEDCK 1015 Department OCA Number VPD RMS Juris CA0197300SACO // 37TH, VERNONRPT CR23-2002 VPD REDONA,BRYAN VPD LANDA,RAFAEL *32W 43 21:52:23 23:00:54 21:52:27 21:52:35 20231224822 12/23/2023 00:00:49 Page 1 of 2 . . Item 6 Page 40 of 57 VERNON POLICE DEPARTMENT Call Log Report Type All Unit Times and Location with OCA's First Date: 12/22/2023 Jurisdiction: VERNON Last Date: 12/22/2023 CallerCall Number Disp Ten Received Code Complaint Address Unit Time Dep Officer Unit Dispatch Enroute OnScene Depart Arrive Remove Comp 20231224822 12/22/2023 22:11:55 PATCK 1015 4550 MAYWOOD AV, VERNONRPT ADV PAWC SOW VPD SALDANA,CARLO VPD LANDA,RAFAEL *31E 43 22:11:55 22:15:10 23:42:20 22:11:58 22:53:40 20231224824 12/22/2023 22:18:10 BOVEH T-MOBILE USA 888-662-4662 OPT 4 S ALAMEDA // 38TH, VERNON VS Department OCA Number VPD RMS Juris CA0197300RPTCR23-2003 VPD ENCINAS,ANTHON MR C TOW *S3 22:21:03 22:27:43 22:25:24 22:42:15 23:09:36 23:09:36MR C TOW 22:27:42 20231224830 12/22/2023 23:45:08 REPO REPO AUSTIN TRUCKING 4528 BANDINI BL, VERNON Department OCA Number VPD VPD RMS Juris CA0197300 CA0197300 RPT CR23-2004 CR23-2005 VPD RECORDS BUREA *RECD 23:48:51 23:56:21 * Denotes Primary Unit 12/23/2023 00:00:49 Page 2 of 2 . . Item 6 Page 41 of 57 VERNON POLICE DEPARTMENT Call Log Report Type All Unit Times and Location with OCA's First Date: 12/23/2023 Jurisdiction: VERNON Last Date: 12/23/2023 CallerCall Number Disp Ten Received Code Complaint Address Unit Time Dep Officer Unit Dispatch Enroute OnScene Depart Arrive Remove Comp 20231224837 12/23/2023 01:15:39 273.5R T-MOBILE USA 888-662-4662 OPT 4 2905 E 50TH, VERNON RPT Department OCA Number VPD RMS Juris CA0197300CR23-2007 VPD LANDA,RAFAEL *43 31E 01:16:59 01:17:27 01:17:39 01:20:41 01:21:52 01:20:43 01:42:30 VPD SALDANA,CARLO VPD REDONA,BRYAN 03:11:36 03:11:3732W 20231224838 12/23/2023 01:18:24 REPO REPO Department OCA Number VPD RMS Juris CA01973004528 BANDINI BL, VERNONRPT CR23-2006 VPD RECORDS BUREA *RECD 01:20:35 01:25:17 20231224857 12/23/2023 09:50:05 925 RPT MIGUEL BANDINI BL // SOTO, VERNON Department OCA Number VPD RMS Juris CA0197300CR23-2008 VPD ESCARPE,ALAN VPD HERNANDEZ,MEL *43E 38 09:53:18 09:53:19 09:53:28 09:59:22 09:57:57 09:57:47 11:26:17 10:22:27 VPD 47W 12:08:15 20231224858 12/23/2023 10:14:27 GTAR BA FURNITURE 52ND//SANTA FE, VERNON *38 RPT Department OCA Number VPD RMS Juris CA0197300CR23-2009 VPD HERNANDEZ,MEL 10:22:29 10:28:15 11:40:30 13:52:52 20231224859 12/23/2023 10:40:53 DET UKNOWN 10822 S INGLEWOOD AVE, LENNOX 1015 VPD MADRIGAL,ALFON VPD HERNANDEZ,MEL *5D33 38 10:40:53 12:28:10 13:28:42 10:41:06 10:41:09 12:28:14 VPD ESCARPE,ALAN VPD LUCAS,JASON VPD MANNINO,NICHOL 43E 13:52:51 13:52:51 13:52:52 5D31 5D35 20231224864 12/24/2023 00:00:07 Page 1 of 2 . . Item 6 Page 42 of 57 VERNON POLICE DEPARTMENT Call Log Report Type All Unit Times and Location with OCA's First Date: 12/23/2023 Jurisdiction: VERNON Last Date: 12/23/2023 CallerCall Number Disp Ten Received Code Complaint Address Unit Time Dep Officer Unit Dispatch Enroute OnScene Depart Arrive Remove Comp 20231224864 12/23/2023 14:39:29 487R REBUILT METALIZING 2229 E 38TH, VERNON 1015 Department OCA Number VPD RMS Juris CA0197300RPTCR23-2010 VPD FLORES,TERESA *47W 38 14:40:49 14:40:51 14:41:27 14:58:27 14:58:22 14:58:39 14:44:39 14:48:33 14:42:36 16:53:14 16:53:14 16:53:15 14:47:31 17:02:17 VPD HERNANDEZ,MEL VPD ESCARPE,ALAN VPD LUCAS,JASON 15:54:15 43E 15:54:20 16:53:24 16:53:27 16:53:29 16:01:13 5D31 5D33 5D35 S7 VPD MADRIGAL,ALFON VPD MANNINO,NICHOL VPD HERNANDEZ,EDW 20231224865 12/23/2023 16:00:26 LPR RPT Department OCA Number VPD RMS Juris CA0197300S SANTA FE AV // 25TH, VERNONVREC CR23-2011 VPD ESCARPE,ALAN VPD HERNANDEZ,MEL *43E 16:01:01 16:06:22 16:06:20 17:08:23 16:01:16 17:44:47 19:08:53 17:00:04 17:00:0338 47W 16:01:23 18:38:07 18:44:19VPD FLORES,TERESA VPD HERNANDEZ,EDW VIRTELSTOW S7 20:31:21 VIERTELTOW 17:18:03 19:08:55 20231224879 12/23/2023 21:13:43 BOVEH T-MOBILE USA 888-662-4662 OPT 4 ALCOA AV // 44TH, VERNON VS Department OCA Number VPD RMS Juris CA0197300RPTCR23-2012 VPD GONZALEZ,BRITT VPD REDONA,BRYAN *38E 40 21:15:37 21:15:39 21:16:34 22:16:56 21:17:34 21:19:01 21:21:18 22:24:53 22:13:30 23:16:40 23:16:40 VPD CAM,PATRICK MR C TOW 47W 22:13:27 MR C TOW * Denotes Primary Unit 12/24/2023 00:00:07 Page 2 of 2 . . Item 6 Page 43 of 57 VERNON POLICE DEPARTMENT Call Log Report Type All Unit Times and Location with OCA's First Date: 12/24/2023 Jurisdiction: VERNON Last Date: 12/24/2023 CallerCall Number Disp Ten Received Code Complaint Address Unit Time Dep Officer Unit Dispatch Enroute OnScene Depart Arrive Remove Comp 20231224899 12/24/2023 02:33:08 REC 1015 Department OCA Number RMS JurisS ALAMEDA // 38TH, VERNONRPT VI VPD VPD VPD CR23-2013 CR23-2014 CR23-2015 CA0197300 CA0197300 CA0197300VREC VPD CAM,PATRICK *47W 38E 40 02:33:08 02:37:35 02:40:43 03:55:56 02:33:30 04:04:54 VPD GONZALEZ,BRITT VPD REDONA,BRYAN VIRTELSTOW 02:33:50 02:33:44 03:42:52 03:54:16 04:31:47 04:04:56 03:57:12 VIERTELTOW 03:42:51 XSVPD OURIQUE,CARLO 20231224915 12/24/2023 12:37:52 GTAR ZETINO TRANSPORT 3000 E 46TH, VERNON RPT Department OCA Number VPD CR23-2016 RMS Juris CA0197300 VPD HERNANDEZ,MEL *38E 12:40:58 12:41:30 12:46:23 14:19:02 13:02:11 20231224916 12/24/2023 14:11:47 GTAR LANDMARK 4420 SEVILLE AV, VERNON *38E RPT Department OCA Number VPD RMS Juris CA0197300CR23-2017 VPD HERNANDEZ,MEL 14:19:07 14:29:40 14:48:31 20231224918 12/24/2023 15:59:17 LOCATE SOUTH GATE PDVREC 5520 BORWICK AVE, SOUTH GATE 20231224925 12/24/2023 18:01:45 166R STARBUCKSRPT Department OCA Number VPD CR23-2018 RMS Juris CA01973003809 S SOTO, VERNON VPD GONZALEZ,BRITT VPD ESCARPE,ALAN *44W 18:02:26 43 18:02:27 18:03:03 18:04:17 18:06:58 18:55:17 18:24:55 20231224931 12/25/2023 00:01:49 Page 1 of 2 . . Item 6 Page 44 of 57 VERNON POLICE DEPARTMENT Call Log Report Type All Unit Times and Location with OCA's First Date: 12/24/2023 Jurisdiction: VERNON Last Date: 12/24/2023 CallerCall Number Disp Ten Received Code Complaint Address Unit Time Dep Officer Unit Dispatch Enroute OnScene Depart Arrive Remove Comp 20231224931 12/24/2023 21:18:01 REC VREC Department OCA Number VPD RMS Juris CA01973002031 E 55TH, VERNON VPD SALDANA,CARLO RPT CR23-2019 *40W 21:19:22 47 21:19:23 XS 21:20:17 21:20:20 21:20:16 21:28:34 21:20:32 22:02:47 VPD NEWTON,TODD VPD OURIQUE,CARLO 21:38:33 21:57:12 * Denotes Primary Unit 12/25/2023 00:01:49 Page 2 of 2 . . Item 6 Page 45 of 57 VERNON POLICE DEPARTMENT Call Log Report Type All Unit Times and Location with OCA's First Date: 12/25/2023 Jurisdiction: VERNON Last Date: 12/25/2023 CallerCall Number Disp Ten Received Code Complaint Address Unit Time Dep Officer Unit Dispatch Enroute OnScene Depart Arrive Remove Comp 20231224941 12/25/2023 00:47:45 UPS 2043 ROSS, VERNON VPD OURIQUE,CARLO 1015 Department OCA Number VPD RMS Juris925RPTCR23-2020 CA0197300 01:11:13 01:19:31 *XS 40W 44E 00:49:08 00:58:22 00:50:30 00:53:37 00:59:26 00:54:06 04:07:33 04:07:33 02:49:11 VPD SALDANA,CARLO VPD GONZALEZ,BRITT 20231224943 12/25/2023 01:09:24 VERNON SALES 1820 E 27TH, VERNON VPD OURIQUE,CARLO RPT Department OCA Number VPD RMS Juris CA0197300459ACR23-2021 *XS 40W 47 01:11:14 01:14:49 01:48:04 01:33:15 03:42:19 VPD SALDANA,CARLO VPD NEWTON,TODD 03:46:28 03:46:2901:31:26 20231224944 12/25/2023 01:17:57 REC RPT Department OCA Number VPD RMS Juris CA01973002750 S ALAMEDA, VERNONVREC CR23-2022 VPD SALDANA,CARLO VPD GONZALEZ,BRITT *40W 44E 01:19:31 03:18:24 01:48:02 03:12:40 04:23:06 07:31:56 20231224962 12/25/2023 07:08:49 487R CR LAURENCERPT Department OCA Number CR23-2023 RMS Juris CA01973002100 E 38TH, VERNON VPD VPD HERNANDEZ,RUD VPD ESCARPE,ALAN *32W 07:12:20 40E 07:12:48 07:13:09 07:13:35 07:14:10 07:28:01 20231224977 12/25/2023 11:09:14 487R RPT HOFFY 3615 E VERNON AV, VERNON Department OCA Number VPD RMS Juris CA0197300CR23-2024 VPD ESCARPE,ALAN *40E 11:10:44 VPD HERNANDEZ,RUD 47W 11:11:34 11:15:15 11:15:17 11:38:11 11:38:11 20231224978 12/26/2023 00:20:25 Page 1 of 2 . . Item 6 Page 46 of 57 VERNON POLICE DEPARTMENT Call Log Report Type All Unit Times and Location with OCA's First Date: 12/25/2023 Jurisdiction: VERNON Last Date: 12/25/2023 CallerCall Number Disp Ten Received Code Complaint Address Unit Time Dep Officer Unit Dispatch Enroute OnScene Depart Arrive Remove Comp 20231224978 12/25/2023 15:21:22 GTAR VERNON TRUCK WASHRPT Department OCA Number VPD RMS Juris CA01973003308 BANDINI BL, VERNON CR23-2025 VPD ESCARPE,ALAN *40E 15:22:45 15:23:00 15:26:53 15:52:01 20231224987 12/25/2023 19:14:15 BOVEH VS Department OCA Number VPD RMS Juris CA0197300S SANTA FE AV // VERNON AV, VERNON *38W RPT CR23-2026 VPD 19:14:15 19:16:56 20:03:02 20:03:02VPD ENCINAS,ANTHON S3 19:14:25 20231224988 12/25/2023 19:51:45 459R HOLIDAY ROCKRPT Department OCA Number VPD RMS Juris CA01973002822 S SOTO, VERNON CR23-2027 VPD NEWTON,TODD *40E 19:53:43 19:53:59 20:03:06 20:25:37 * Denotes Primary Unit 12/26/2023 00:20:25 Page 2 of 2 . . Item 6 Page 47 of 57 VERNON POLICE DEPARTMENT Call Log Report Type All Unit Times and Location with OCA's First Date: 12/26/2023 Jurisdiction: VERNON Last Date: 12/26/2023 CallerCall Number Disp Ten Received Code Complaint Address Unit Time Dep Officer Unit Dispatch Enroute OnScene Depart Arrive Remove Comp 20231225010 12/26/2023 07:53:36 DURAY 4380 AYERS AV, VERNON RPT Department OCA Number VPD CR23-2028 RMS Juris CA0197300586VS VPD GODOY,RAYMON *40E 07:55:47 07:56:11 08:07:56 09:38:14 20231225015 12/26/2023 10:38:38 REC VREC 5525 S SOTO, VERNON VPD HERNANDEZ,RUD VPD GODOY,RAYMON *43W 40E 10:38:38 10:43:37 11:42:46 11:24:38 20231225018 12/26/2023 11:06:09 487R RPT BTG TEXTILE Department OCA Number VPD RMS Juris CA01973004625 E 49TH, VERNON CR23-2029 VPD CERDA,EUGENIO *44 11:09:31 12:09:11 20231225032 12/26/2023 15:33:29 417 ARDULFO HERRERA1015 Department OCA Number VPD RMS Juris CA0197300FRUITLAND AV // SEVILLE AV, VERNONRPT CR23-2030 VPD HERNANDEZ,RUD VPD GODOY,RAYMON *43W 40E 44 15:38:50 15:41:46 15:41:44 15:39:25 15:39:34 19:03:16 16:04:09 16:54:49 16:32:30 VPD CERDA,EUGENIO VPD RAMOS,JOSE S6 20231225035 12/26/2023 16:59:21 AMAZON 5119 S DISTRICT BL, VERNON S/A A VPD GODOY,RAYMON *40E 17:02:54 VPD HERNANDEZ,MIG 2STOF RPT Department OCA Number VPD RMS Juris CA0197300487RCR23-2031 17:03:09 17:28:09 17:10:17 18:07:25 18:07:25 20231225041 12/26/2023 20:51:51 GTAR AMPM 3278 E SLAUSON AV, VERNON *43E 20:54:47 RPT Department OCA Number VPD 20:54:48 RMS Juris CA0197300CR23-2032 VPD 20:56:27 12/27/2023 00:04:49 Page 1 of 2 . . Item 6 Page 48 of 57 VERNON POLICE DEPARTMENT Call Log Report Type All Unit Times and Location with OCA's First Date: 12/26/2023 Jurisdiction: VERNON Last Date: 12/26/2023 CallerCall Number Disp Ten Received Code Complaint Address Unit Time Dep Officer Unit Dispatch Enroute OnScene Depart Arrive Remove Comp 20231225041 12/26/2023 20:51:51 AMPM 3278 E SLAUSON AV, VERNON VPD OURIQUE,CARLO 40 RPT Department OCA Number CR23-2032 RMS Juris CA0197300GTARVPD 20:54:53 21:01:03 21:39:36 * Denotes Primary Unit 12/27/2023 00:04:49 Page 2 of 2 . . Item 6 Page 49 of 57 VERNON POLICE DEPARTMENT Call Log Report Type All Unit Times and Location with OCA's First Date: 12/27/2023 Jurisdiction: VERNON Last Date: 12/27/2023 CallerCall Number Disp Ten Received Code Complaint Address Unit Time Dep Officer Unit Dispatch Enroute OnScene Depart Arrive Remove Comp 20231225067 12/27/2023 08:54:17 902T UNITED MELON 1937 E VERNON AV, VERNON RPT Department OCA Number VPD RMS Juris CA0197300CR23-2033 VPD HERNANDEZ,RUD VPD CERDA,EUGENIO *43W 44 09:01:51 09:02:21 09:13:55 09:07:50 09:02:29 09:36:47 09:36:47 20231225069 12/27/2023 08:57:59 HPPD 3081 E SLAUSON AV, VERNON VPD VELASQUEZ,RICH *47E 08:59:45 RPT Department OCA Number VPD RMS Juris CA0197300901TCR23-2034 09:00:27 16:02:48 21:02:00 09:02:16 10:52:35 16:46:21 20231225096 12/27/2023 16:00:59 ELCO LIGHTING 2045 E VERNON AV, VERNON RPT Department OCA Number RMS Juris CA0197300902TVPDCR23-2035 VPD HERNANDEZ,RUD *43W 16:09:33 20231225105 12/27/2023 20:59:49 901T RPT Department OCA Number RMS Juris CA0197300DOWNEY RD // LEONIS BL, VERNONOR VPD CR23-2036 VPD CAM,PATRICK VPD GODOY,RAYMON VPD ONOPA,DANIEL *40E 21:02:00 21:03:58 21:04:08 21:03:40 21:39:40 21:39:40 21:39:40 47W S2 * Denotes Primary Unit 12/28/2023 00:09:32 Page 1 of 1 . . Item 6 Page 50 of 57 VERNON POLICE DEPARTMENT Call Log Report Type All Unit Times and Location with OCA's First Date: 12/28/2023 Jurisdiction: VERNON Last Date: 12/28/2023 CallerCall Number Disp Ten Received Code Complaint Address Unit Time Dep Officer Unit Dispatch Enroute OnScene Depart Arrive Remove Comp 20231225141 12/28/2023 09:59:44AM 459R THE ADHESIVE PRODUCTS 4727 E 48TH, VERNON RPT Department OCA Number CR23-2037 RMS Juris CA0197300VPD 10:02:56AMVPD CERDA,EUGENIO *44W 10:03:08A VPD VILLEGAS,RICHAR VPD RAMOS,SALVADO VPD FLORES,TERESA 31E 10:03:49A 10:06:38A 10:03:52A40W 47 10:03:18AM 10:06:30AM 10:18:38AM 10:45:18AM 20231225146 12/28/2023 10:30:59AM ASSISTFD FARMER JOHN 3049 E VERNON AV, VERNON RPT Department OCA Number VPD RMS Juris CA0197300CR23-2038 VPD RAMOS,SALVADO VPD CEDENO,RUTH *40W 2P8 31E 43E 44W 47 11:42:17AM 10:32:09AM 10:34:22AM 10:38:26AM 10:35:32AM 10:41:45AM 10:33:46AM 10:39:07AM 10:43:46AM 10:55:49AM 10:47:32AM 11:09:03A 12:58:33PM 12:58:32PM VPD VILLEGAS,RICHAR VPD VELASQUEZ,RICH VPD CERDA,EUGENIO VPD FLORES,TERESA VPD LUCAS,JASON 11:04:56A 11:05:07A 11:08:58A 11:42:06A 11:09:18A 11:09:11A 11:09:14A 5D31 5D33 5D35 S1 10:48:44AM VPD MADRIGAL,ALFON VPD MANNINO,NICHOL VPD ESTRADA,IGNACI 10:48:47AM 10:48:49AM 11:09:31AM 12:58:33PM 20231225151 12/28/2023 12:26:48PM 902T RPT Department OCA Number VPD RMS Juris CA0197300S SANTA FE AV // 38TH, VERNON CR23-2039 VPD VELASQUEZ,RICH VPD RAMOS,SALVADO VPD FLORES,TERESA *43E 40W 47 12:28:33PM 12:44:25PM 12:59:04PM 01:00:18PM 12:57:40PM 12:58:27PM 01:12:45P 02:05:29PM 02:05:29PM 20231225158 12/28/2023 03:07:04PM 20001R T-MOBILE USA, INC. E VERNON AV // SAINT CHARLES, VERNON RPT Department OCA Number CR23-2040 RMS Juris CA0197300VPD 03:09:58PM 03:09:57PMVPD RAMOS,SALVADO VPD CEDENO,RUTH *40W 2P8 04:42:04P 03:30:08PM 04:20:02P 12/29/2023 05:05:33 Page 1 of 2 . . Item 6 Page 51 of 57 VERNON POLICE DEPARTMENT Call Log Report Type All Unit Times and Location with OCA's First Date: 12/28/2023 Jurisdiction: VERNON Last Date: 12/28/2023 CallerCall Number Disp Ten Received Code Complaint Address Unit Time Dep Officer Unit Dispatch Enroute OnScene Depart Arrive Remove Comp 20231225158 12/28/2023 03:07:04PM 20001R T-MOBILE USA, INC. E VERNON AV // SAINT CHARLES, VERNON RPT Department OCA Number VPD RMS Juris CA0197300CR23-2040 VPD VELASQUEZ,RICH 43E 47 03:13:21PM 03:18:54PM 03:10:49PM 03:12:01PM 04:14:50PM 03:52:40P VPD FLORES,TERESA VPD ESTRADA,IGNACI 07:27:53PM S1 04:45:51P 20231225178 12/28/2023 09:50:52PM MR60 RPT Department OCA Number VPD CR23-2041 RMS Juris CA01973004575 E DISTRICT BL, VERNON VPD CAM,PATRICK VPD REDONA,BRYAN VPD CERDA,PAUL,JR *40W 09:56:25P 09:56:26PM 10:03:02PM 10:39:50PM 10:44:07PM 09:57:11PM 10:01:12PM 11:11:45PM 11:11:45PM 32E 43 11:00:34P * Denotes Primary Unit 12/29/2023 05:05:33 Page 2 of 2 . . Item 6 Page 52 of 57 VERNON POLICE DEPARTMENT Call Log Report Type All Unit Times and Location with OCA's First Date: 12/29/2023 Jurisdiction: VERNON Last Date: 12/29/2023 CallerCall Number Disp Ten Received Code Complaint Address Unit Time Dep Officer Unit Dispatch Enroute OnScene Depart Arrive Remove Comp 20231225186 12/29/2023 01:11:05AM VCK RPT Department OCA Number RMS JurisE 49TH // SANTA FE AV, VERNONVI VPD CR23-2042 01:11:05AM 01:43:06AM 01:58:42AM CA0197300 01:44:10A 01:44:27A VPD REDONA,BRYAN VPD CERDA,PAUL,JR *32E 43 02:18:07AM 02:18:07AM 20231225231 12/29/2023 10:27:06AM 594R CLASSIC CONCEPTS 4505 BANDINI BL, VERNON *38E 10:30:10A RPT Department OCA Number VPD CR23-2043 10:32:30AM 10:40:11AM RMS Juris CA0197300 VPD HERNANDEZ,MEL 11:35:27AM 20231225232 12/29/2023 10:49:36AM 901TR AT&T MOBILITY 800-635-6840RPT Department OCA Number CR23-2044 RMS Juris CA0197300E 26TH // SIERRA PINE AV, VERNON VPD 10:52:58AM 11:03:06AM 11:10:01AM 11:15:36AM VPD VELASQUEZ,RICH VPD FLORES,TERESA *43W 10:51:49A 47E 12:24:09PM 12:24:09PM 20231225258 12/29/2023 05:27:28PM 484R ROBERTSON READY MIX 3365 E 26TH, VERNON RPT Department OCA Number VPD RMS Juris CA0197300CR23-2045 VPD HERNANDEZ,MEL VPD RAMOS,SALVADO *38E 40W 05:29:38PM 05:36:01PM 05:44:44PM 06:53:28PM 06:15:46P 20231225265 12/29/2023 08:52:39PM 927 RPT T-MOBILE USA 888-662-4662 OPT 4 S SANTA FE AV // 51ST, VERNON Department OCA Number VPD CR23-2046 RMS Juris CA01973001015 VPD CAM,PATRICK VPD REDONA,BRYAN VPD ENCINAS,ANTHON *44W 40 08:53:17PM 08:54:43PM 08:59:51PM 09:02:56PM 08:55:29PM 09:15:41P 10:36:34PM S3 09:52:18P 20231225268 12/29/2023 10:10:38PM 459A SERVICE MAILERSRPT Department OCA Number VPD CR23-2047 10:12:04PM 10:20:00PM RMS Juris CA01973002468 E 26TH, VERNON VPD CAM,PATRICK *44W 10:12:03P 12:05:37A 12/30/2023 05:34:48 Page 1 of 2 . . Item 6 Page 53 of 57 VERNON POLICE DEPARTMENT Call Log Report Type All Unit Times and Location with OCA's First Date: 12/29/2023 Jurisdiction: VERNON Last Date: 12/29/2023 CallerCall Number Disp Ten Received Code Complaint Address Unit Time Dep Officer Unit Dispatch Enroute OnScene Depart Arrive Remove Comp 20231225268 12/29/2023 10:10:38PM SERVICE MAILERS 2468 E 26TH, VERNON VPD REDONA,BRYAN RPT Department OCA Number VPD RMS Juris CA0197300459ACR23-2047 40 47E S3 10:53:43PM 11:00:45PM 10:13:19PM 10:14:10PM 10:17:49PM 12:11:43AM VPD LANDA,RAFAEL 12:05:09A VPD ENCINAS,ANTHON 11:43:31P * Denotes Primary Unit 12/30/2023 05:34:48 Page 2 of 2 . . Item 6 Page 54 of 57 VERNON POLICE DEPARTMENT Call Log Report Type All Unit Times and Location with OCA's First Date: 12/30/2023 Jurisdiction: VERNON Last Date: 12/30/2023 CallerCall Number Disp Ten Received Code Complaint Address Unit Time Dep Officer Unit Dispatch Enroute OnScene Depart Arrive Remove Comp 20231225312 12/30/2023 04:24:01PM WELCK T-MOBILE USA 888-662-4662 OPT 4ASST Department OCA Number VPD RMS Juris CA0197300FRUITLAND AV // PACIFIC BL, VERNONRPT CR23-2048 VPD HERNANDEZ,MEL VPD ESCARPE,ALAN *38W 04:25:25P 47E 04:25:27P 04:26:30PM 04:27:24PM 04:26:32PM 04:26:35PM 04:45:57PM 04:45:58PM 20231225322 12/30/2023 08:34:20PM DPTAST HPPD 2811 SLAUSON AV, HUNTINGTON PARK RPT Department OCA Number CR23-2049 RMS Juris CA01973001015VPD 08:36:06PM 08:37:50PM 08:42:50PM VPD SALDANA,CARLO VPD GONZALEZ,BRITT *47E 38W 40 10:22:55P 09:42:30P 09:34:27P 09:30:29P VPD REDONA,BRYAN VPD ENCINAS,ANTHON 08:40:18PM S3 08:40:05PM 08:40:10PM 20231225324 12/30/2023 09:29:06PM PANIC ALARM CIRCLE K 2575 S SANTA FE AV, VERNON RPT Department OCA Number VPD RMS Juris CR23-2050 CA0197300 10:09:21P 10:36:09P VPD ENCINAS,ANTHON *S3 38W 40 09:30:29PM 09:37:24PM 09:42:31PM 09:56:55PM 09:34:27PM VPD GONZALEZ,BRITT VPD REDONA,BRYAN 11:50:39PM 11:01:36PM 20231225326 12/30/2023 10:20:52PM 487R U WAY PACKAGING SUPPLIES 2424 E 28TH, VERNON RPT Department OCA Number VPD CR23-2051 10:23:36PM 10:27:05PM RMS Juris CA0197300 VPD SALDANA,CARLO *47E * Denotes Primary Unit 12/31/2023 06:15:00 Page 1 of 1 . . Item 6 Page 55 of 57 VERNON POLICE DEPARTMENT Call Log Report Type All Unit Times and Location with OCA's First Date: 12/31/2023 Jurisdiction: VERNON Last Date: 12/31/2023 CallerCall Number Disp Ten Received Code Complaint Address Unit Time Dep Officer Unit Dispatch Enroute OnScene Depart Arrive Remove Comp 20231225341 12/31/2023 06:42:18 DET 1015 Department OCA Number VPD CR23-2053 RMS Juris CA01973002217 ATLANTIC, COMMERCEVREC RPT VPD MANNINO,NICHOL *5D35 38 06:42:18 09:43:06 08:44:23 11:39:26 06:42:32 08:55:21 06:42:37 14:02:46 VPD HERNANDEZ,MEL VPD ESCARPE,ALAN VPD CERDA,EUGENIO VPD MARTINEZ,GABRI VPD LUCAS,JASON 09:33:09 08:41:37 11:35:46 09:03:22 12:20:39 14:03:07 12:15:02 14:02:54 14:32:20 14:02:58 43W 47E 5D30 5D31 5D33VPD MADRIGAL,ALFON 20231225344 12/31/2023 07:18:33 925 1015 Department OCA Number CR23-2052 RMS Juris CA0197300E 49TH // SANTA FE AV, VERNON *43W 07:18:59 38 07:19:02 47E S7 RPT VPD VPD ESCARPE,ALAN 07:19:21 07:19:22 07:21:18 07:20:55 07:19:49 07:47:28 08:41:34 VPD 08:09:41 08:09:35 VPD CERDA,EUGENIO 09:36:50 VPD HERNANDEZ,EDW 20231225347 12/31/2023 10:47:27 925 SUP 2191 ANDERSON, VERNON *47E 10:49:47VPD CERDA,EUGENIO 10:49:48 10:53:54 11:33:01 20231225348 12/31/2023 12:11:01 925 T-MOBILE USA 888-662-4662 OPT 4RPT Department OCA Number VPD RMS Juris CA0197300S ATLANTIC BL // BANDINI BL, VERNON CR23-2054 VPD HERNANDEZ,EDW VPD HERNANDEZ,MEL *S7 12:14:40 12:14:41 12:20:42 12:15:05 12:26:37 12:22:24 12:21:47 15:49:01 15:42:11 16:25:24 38 13:32:52 16:25:22VPD CERDA,EUGENIO VPD MARTINEZ,GABRI VPD SWINFORD,PHILL 47E 5D30 5D32 17:49:54 17:49:54 20231225355 01/01/2024 05:32:08 Page 1 of 2 . . Item 6 Page 56 of 57 VERNON POLICE DEPARTMENT Call Log Report Type All Unit Times and Location with OCA's First Date: 12/31/2023 Jurisdiction: VERNON Last Date: 12/31/2023 CallerCall Number Disp Ten Received Code Complaint Address Unit Time Dep Officer Unit Dispatch Enroute OnScene Depart Arrive Remove Comp 20231225355 12/31/2023 18:02:49 LPR 1015 Department OCA Number VPD CR23-2055 RMS Juris CA0197300S SANTA FE AV // 25TH, VERNONVREC RPT VPD CERDA,EUGENIO *47E 38 18:05:48 18:06:12 18:05:55 18:08:15 19:49:57 VPD HERNANDEZ,MEL VPD ESCARPE,ALAN VPD HERNANDEZ,EDW 18:25:18 19:01:02 19:01:03 43W S7 18:05:53 * Denotes Primary Unit 01/01/2024 05:32:08 Page 2 of 2 . . Item 6 Page 57 of 57 City Council Agenda Report Meeting Date:February 20, 2024 From:Daniel S. Wall, P.E., Director of Public Works Department:Public Works Submitted by:Lissette Melendez, Project Engineer Subject Public Improvements Agreement No. 2024-01 with Shewak & Laiwanti Holdings, LLC Recommendation A. Find that the proposed action is categorically exempt from California Environmental Quality Act (CEQA) review, in accordance with CEQA Guidelines Section 15301, because the project consists of the maintenance, repair or minor alteration of an existing facility and involves negligible or no expansion of an existing use; and B. Approve and authorize the Mayor to execute a Public Improvements Agreement with Shewak & Laiwanti Holings, LLC, in substantially the same form as submitted, for the City to construct necessary frontage improvements and receive payment in the amount of $137,651.55. Background Shewak & Laiwanti Holdings (Shewak & Laiwanti), the owner of the property located at 3165 Slauson Avenue, has applied for a building permit for redevelopment of the site. As a condition of the building permit and in accordance with Vernon Municipal Code Section 16.04.030, the City has required Shewak & Laiwanti to construct or pay for certain public improvements to the property consistent with the Master Plan of Streets, including the construction of sidewalks, driveway, access ramps, curb and gutter, curb return and relocation of the traffic signal at the northeast corner of Slauson Avenue and Boyle Avenue. The property owner has requested the City construct the required frontage improvements at the corner of Slauson Avenue and Boyle Avenue as part of the Slauson Avenue Congestion Relief Improvement Project (Project) at the property owner’s cost. This Project is being led by the City of Huntington Park (HP) as they own half of the Slauson Avenue/Boyle Avenue intersection. City of Vernon staff is working in conjunction with HP staff to complete the Project which will include the improvements required at the northeast corner of Slauson Avenue and Boyle Avenue. Shewak & Laiwanti has agreed to pay the City of Vernon the cost of the construction of the improvements based on the estimate and plans provided as Exhibit A of the proposed Public Improvements Agreement. The agreement has been reviewed and approved as to form by the City Attorney’s Office. Fiscal Impact There is no fiscal impact associated with this report as costs for the necessary frontage improvements will be paid to the City by Shewak & Laiwanti. Attachments 1. Public Improvements Agreement No. 2024-01 . . Item 7 Page 1 of 1 PUBLIC IMPROVEMENTS AGREEMENT NO.2024-01 BETWEEN THE CITY OF VERNON AND SHEWAK &LAIWANTI HOLDINGS,LLC This Public Improvements Agreement (Agreement)is entered into,as of February 20, 2024 (Effective Date),by and among the City of Vernon,a California charter City and California municipal corporation (City),and Shewak &Lajwanti Holdings,LLCa limited liability company (Company). RECITALS A.Company has applied for a building permit for its property located at 3165 Slauson Avenue in the City of Vernon. B.Asacondition of Company?s building permit and in accordance with Vernon Municipal Code Section 17.60.010,City has required certain public improvements to the property consistent with the Master Plan of Streets including construction of sidewalk,driveways,access ramps,curb and gutter and relocation of the traffic signal at the northeast corner of Slauson Avenue and Boyle Avenue (Frontage Improvements),as depicted in Exhibit A,attached hereto and incorporated herein by reference. C.Company has requested that City construct the required Frontage Improvements as part of the City?s Slauson Avenue Congestion Relief Improvement Project,at Company?s cost. D.City,in conjunction with the City of Huntington Park,will enter into a construction contract which will require the removal of existing improvements in the right-of-way,the construction of curb,gutter and sidewalk and the relocation of the traffic signal in accordance with the City of Vernon?s Master Plans of Streets. E.Company has agreed to pay City one-hundred and thirty-seven thousand,six hundred and fifty-one dollars and fifty-five cents ($137,651.55)for the City to construct and/or utilize its own contractor to construct the Frontage Improvements at the northeast corner of Slauson Avenue and Boyle Avenue. NOW,THEREFORE,in consideration of the above recitals and of the mutual covenants hereinafter contained and for other good and valuable consideration,the receipt and sufficiency of which are hereby acknowledged,the Parties agree as follows: 1.The City shall remove existing facilities at the northeast corner of Slauson Avenue and Boyle Avenue and construct new Frontage Improvements in accordance with the City of Vernon?s Master Plan of Streets and as Company is required to complete pursuant to Vernon Municipal Code Section 17.60.010. 2.In consideration for construction of the required Frontage Improvements,Company or its successor shall pay to the City on or before March 1,2024 a total payment of one-hundred and thirty-seven thousand,six hundred and fifty-one dollars and fifty-five cents ($137,651.55),as payment in full for said work described above. 3.Upon approval of this Agreement,the Public Works Department will issue a letter to Company confirming that it has satisfactorily complied with all public improvements at the northeast corner of Slauson Avenue and Boyle Avenue required for this building permit in . . Item 7 Page 1 of 6 Public Improvements Agreement No,2024-01 Page 2 of 3 accordance with the City of Vernon?s Master Plan of Streets and Vernon Municipal Code Section 17.60.010. 4.Any notices,demands or other communications required or desired to be given or made under the terms of this Agreement shall be in writing and personally served,or served by registered or certified mail,return receipt requested,deposited in the United States Mail with postage thereon fully prepaid and addressed as follows: CITY: City of Vernon Attention:Daniel Wall,Director of Public Works 4305 Sanat Fe Avenue Vernon,CA 90058 COMPANY Shewak &Lajwanti Holdings,LLC Attention:Bhart Manwani,Member-Owner 5600 Downey road Vernon,CA 90058 Any notice,demand or other communication shall be deemed given or made on the day personally served,or,if service is by mail,three (3)days following the date such notice was deposited in the United States mail with postage thereon fully prepaid. 5.Agreement Runs with the Land.The Agreement must be construed as running with the land and all rights and powers given to and obligations imposed upon the Parties must be construed as inuring to and binding upon the successors in interest of the Parties, respectively.This document may be recorded under the project parcel. 6.Entire Agreement.This Agreement represents the entire agreement by and among the Parties and supersedes all prior negotiations,representations or agreements.This Agreement may be amended only by a written instrument signed by an authorized representative of the City and Company. 7.Counterparts.This Agreement may be executed in counterparts,each of which shall be deemed an original,but all of which together shall constitute one and the same Agreement. [Signatures Begin on Next Page]. . . Item 7 Page 2 of 6 Public Improvements Agreement No.2024-01 Page 3 of 3 IN WITNESS WHEREOF,the Parties hereto,each of whom warrants that they are authorized to execute agreements on behalf of their respective party,have executed this Agreement on the date set forth below. City:City of Vernon,a California charter City and California municipal corporation Date: Crystal Larios,Mayor ATTEST:APPROVED AS TO FORM: Lisa Pope,City Clerk Zaynah N.Moussa,City Attorney Shewak &Lajwanti Holdings,LLC a limited liability company By:_fle Print Name:?Bhuct Mami Title:President [Ovorer_ Date:fas fee . . Item 7 Page 3 of 6 Type of Work raffic Signal emo of curb,gutter and sidewalk nstall curb &gutter nstall sidewalk nstall A88A Curb Ramp nstall truncated domes nstall full depth asphalt EXHIBIT A |__Rate §5.34 LF 1of3 137,651.55 . . Item 7 Page 4 of 6 €40¢JO9US SNNGAYJOE¥%193N1SALVIS SWHV~ISVN|NONOSL-£44whry TWLSNIONYWtY?LSVALNONOSL-C2yBONS[7]riaW350NOLVSOT3d SVNOUV2013NVS3HLNIXOBTINdSONABNTIISN![§]wai?CRIONSuNGHIOSST °¥W13032S?OW3HJOHGAGIZinsTwisSNi23BTINS2, ONY¥W130Gv3HJOHGAGN.ZI-S?xaSAoRGY§]"LON ?8?W13033S?OV3HFDIWGAGH)ZI-STWISNONV'BV130GV3HJIONGAG1.Zt-<3GBAONaYfE)TWAISNIONYOV3HSTOHGAGI.Zi-f2G3A0NGH[] ?NOLOMLSNOD1GUND30GOL ?BLFWAINODOWWONNIS?K331VDO7GYGNYONY[i] (mowtivNIFUDONIOWS))BAGSIRG/1I210Nd« TSRIONNOLSIRIISNOS ?|tlo\ |\ 6)°t3\ eiVeTW:.. i?oYEE)|a.wvi30? ESyy TeNeatESes VarRTERIO SntMe?PIG) ee ple Pa ?WVEOVIC3OV5TNON¥RILSIC3dw3al| (300K)SPALLINGLHOM)OG)GAVHTWHSSOV3HNYRUS3C3dAGNTW?2' a NAAANAANS TTT "SYOLONONODONUSKROLM3NZoMS <N\AAANTL NAAN LTT NAANTT NVANANTTT NAANTT otekTTTTT Pisaal DHLHUMZONVGUODOYMICBHI2dTIVHSLNGNdINOZWHOISTHT ?MOULVOUULNGO!3SVHdNOSLBMIEYDUITIOULNOOSHIMHLW (0200V1)CORN3GTHHS?M3090ONUSKEWOHIBHM?ONTv?2% "WOLDVEINOD3HtAS CITIVISAMChiCHS3GTWHSLIGRGINODONYSTRELATy?4?NOSSHVNLZRAUSCALYNINNT)eee ISILONWHINDSaaSINASHOSLINGNODGNVYYOLONANOOD ?X08TidONUSOGOLNLIRONOSTrismER) ?WaASVWHOBNONOSOF i| ?NYUONIO2SVHdWNOSG3S0d0udHl II a Z Z g , : NNWLINGNOO VLICHXa . . Item 7 Page 5 of 6 . . Item 7 Page 6 of 6 City Council Agenda Report Meeting Date:February 20, 2024 From:Daniel S. Wall, P.E., Director of Public Works Department:Public Works Submitted by:Cynthia Cano, Administrative Secretary Subject National Auto Fleet Group Vehicle Purchase Recommendation A. Approve and authorize the purchase of one new 2024 Ford Super Duty F-350 DRW for a total amount not-to-exceed $72,923.24; and B. Authorize a contingency amount of $7,292.32 (approximately 10%) should the purchase of a comparable Utility Truck be necessary due to limited vehicle inventory, and grant authority to the City Administrator to issue a Supplemental to the Purchase Order to National Auto Fleet Group for an amount up to the contingency amount. Background The adopted Public Works Department, Street Operations Division budget for FY 2023-24 included planned capital expenditures for the purchase of one new 2024 Ford Super Duty F-350 DRW to meet the operational needs of the Street Division. The purchase of the new vehicle will provide Public Works staff with the transportation necessary to continue to promptly execute daily work responsibilities and effectively meet the needs of the City. The quote secured for this purchase from National Auto Fleet Group is based on Sourcewell contract #091521-NAF. Pursuant to Vernon Municipal Code (VMC) Section 3.32.110(A)(5), the purchase of the proposed vehicle is exempt from competitive bidding and competitive selection, as Sourcewell is a public agency and service cooperative through which contracts are awarded by a competitive process. Staff recommends approval of one new 2024 Ford Super Duty F-350 DRW through National Auto Feet Group. It is to the advantage of the City to procure vehicles from the selected vendor since Sourcewell provides members with the lowest price available. Per VMC Section 3.32.030(B), City Council approval is required if, in the twelve (12) months preceding the effective date of a proposed new, renewed, or otherwise amended contract, the City has paid or awarded the vendor more than $100,000. Within the past twelve (12) months, the City has paid or awarded National Auto Fleet Group a total of approximately $708,753.37 in purchase orders. Fiscal Impact The fiscal impact is not-to-exceed $80,215.56. Sufficient funds are available in the General Fund, Public Works Department, Fleet Services Division, Capital Outlay Account No. 011-040-420- 660000 for the current fiscal year. Attachments 1. National Auto Fleet Group Quote 1-10-2024 . . Item 8 Page 1 of 1 '1010112024,08101 Ae**0trLmt AlrlD I O//-otl$"'t3.-0boto Sell, service, and deliver letter # jason tomlinson City of Vernon Public works 4305 Santa Fe Ave Vernon, California, 90058 Dear jason tomlinson, NationalAuto Fleet Group is pleased to quote the following vehicle(s) for your consideration. One (1) New/Unused (2024 Ford Super Duty F-350 DRW (X3O) XL 4WD SuperCab 8' Box 164" WB, Royal 8ft Body Quote# 0475570 + Handling $1600.00) and delivered to your specified location, each for Contract Price Royal 8ft Body Quole# 0475570 + Handling $1600.00 Additional Key(s) Tax (0.0000 o/o) Tire fee Total olnmtrT Quote lD: 37002 Rl Order Cut Off Date: TBA Total % Savings 3.684 % $0.00 $10.25 $8.75 $72,923.24 TOYOTA Total Savings $2,103.76 - per the attached specifications. This vehicle(s) is available under the Sourcewell (Formerly Known as NJPA) Contract 091521-NAF . Please reference this Contract number on all purchase orders to National Auto Fleet Group. Payment terms are Net 20 days after receipt of vehicle. Thank you in advance for your consideration. Should you have any questions, please do not hesitate to call. Sincerely, Jesse Cooper Account Manager Email: Fleet@NationalAutoFleetGroup.com Office: (855) 289-6572 Fax: (831) 480-8497 '-t @ I#!==s,@@ EME httpsJ/nationalautofleetgroup.com/OrderRequesUSSDPriny3T002?ws=True&se=True&ssdType=OrderRequest&tsbt=True&knm=True Nati g:L*,**fg, Ik p I Gro up 4gA Aqte C.ntrr Driv.. W.t.!nvil!., CA 95075 [a5sl 288-85re. 18311 480-8497 Fqr F l..tC rtl stia n r lAu t o F l. stG ro u p, c om 1t9t2024 1 I I 012024 Re-Confi gured One Unit One Unit (MSRP} $57,100.00 $54,996.24 $17,908.00 @ 2t11 . . Item 8 Page 1 of 13 10t0112024, 08:01 Sell, service, and deliver letter Purchase Order lnstructions & Resources ln order to finalize your purchase please submit this purchase packet to your governing body for a purchase order approval and submit your purchase order in the following way: Emai! : Fleet@NationalAutoFleetGroup.cstD Fax: (831) 480€497 Mail: National Auto Fleet Group 490 Auto Center Drive Watsonville, CA 95076 We will send a courtesv confirmation for vour order and a W-9 if needed. Additional Resources Learn how to track your vehicle: Use the upfitter of your choice: Vehicle Status: General lnquiries: www.NAFGETA.com www.NAFGpartncr.csm EIA@ N ati o n a lAuto F ! eetG ro u p_es n0 Elcg!@NationalAutoFleetGroup.coln For general questions or assistance please contact our main office at: 1-855 -289-6572 https://nationalautoieetgroup.cofirorderRequesUSSDPrinV3T002?ws=True&se=True&ssdType=OrderReques8tsbFTrue&knm=True 4t11 . . Item 8 Page 2 of 13 I ROYAL TRUCK BODY SALESORDER# 0475570 *-*QUOTE VALID FOR 30 DAYS** Page 1 ot 4 5570 DATE ENTERT 1/8,/2024 IRUCK ORIGIN DLR-Drop )ATE REOUESTED WRITTEN BY IL SALESMAN TC TERR l\ilS DATE PROMISED 9/9/9999 END USER (F DIFFERENT THAN SOLD TO) CITY OF VERNON S o L o NATIONAL AUTO FLEET GROUP 490 AUTO CENTER WATSONVILLE, CA 95076 S CITY OF VERNON H PUBLIC WORKS I4305SANTAFEAVEP 'SEE LINES FOR INSTRUCTIONS Los Angeles, CA 90058 NATFLEECUSTOMER NOI CUST ORDER NO TERMS NET 30 SHIP VIA ROYAL TRUCK ETA CUSTOMER NAME coNNtE so CUSTOMER PHONE NO 5626840642 UAKE TRUCK Ford 24 YEAR MODEL x3c164 COLOR WHITE CA DIM 56 AUX TANK CONFIG AXLE TYPE 4X2 oRW DEF TANK LOC STOCK NO v.t.N. No BED WIOTH 49 COMPT DEPTH 22 OA WIDTH 93 FUEL TYPE CAB TYPE SOURCEWELL ID 37002 ROYAL CARSON . DROP SHIP.FORD 88WJ71 2024IDEALER UNIT/FORD F350168/SUPER CAB PICK UP/ DRW 4X2 GAS 40-vDo-98-tML 4OH ROYAL BODY W/OPEN TOP LIDS 98'L(DRW) wlTH INTERNAL MASTER LOCK 9A SYSTEM FEATURING A TWIST HANDLE THAT CAN BE LOCKED WITH CUSTOMER SUPPLIEO PADLOCK ENABLING AODITIONAL SECURITY VDOCURB SIDEVDOSTREET SIDE 1 1,336.0000 1 1,336.00 1,756.0000 1,756.00 1,222.0000 1 ,222.00602418188 Conlinued 1 ,l 1 QUOTATION QTY PART NO./DESCRIPTION UNIT PRICE EXT PRICE 24200 S. MAIN STREET CARSON, CA 90745 PHONE: 562-633-9951 FAX: 866-346-6 1 03 TAX SCHED CA STZ WV R-12-98-22-ECC EXT/CREW FORKLIFT ACCESSIBLE RACK 98" . . Item 8 Page 3 of 13 ROYAL TRUCK BODY 24200 S. MAIN STREET CARSON, CA 90745 PHONE: 562-633-9951 FAX: 866-346{103 SALESORDER* 0475570 **QUOTE VALID FOR 30 DAYS** Page 2 ol 4 75570 OATE ENTERT 1t8t2024 TRUCK ORIGIN OLR-Orop )ATE REOUESTED WRITTEN BY TC SALESMAN TC TERR MS DATE PROMISED 9/9/9999 END USER (lF DIFFERENTTHAN SOLD TO} CITY OF VERNON TAX SCHED CA STZ WV o L o NATIONAL AUTO FLEET GROUP 490 AUTO CENTER WATSONVILLE, CA 95076 S CITY OF VERNON H PUBLTC WORKSI 4305 SANTA FE AVEP 'SEE LINES FOR INSTRUCTIONS Los Anoeles, CA 90058 NATFCUSIOTiERIIO CUST ORDER NO TERMS NET 30 SHIPVIA ROYAL TRUCK ETA CUSIOMER NAME CONNIE SO CUSTOMER PHONE NO 5526840542 '4AKE TRUCK Ford YEAR 24 x3c164 COLOR WHITE CA DIM 56 AUX TANK CONFIG AXLE TYPE 4X2 oRW DEF TANK LOC STOCK NO.v.l.N. No.AED WIDTH 49 COMPT OEPTH 22 OA wlDTH 93 FUEL TYPE CAB TYPE 1 1 1 POLYUREA SPRAY ON BED LINER SHALL BE SPRAYED ON THE FOLLOWING AREAS: (1)BULKHEAD, (2) BACK-WRAPPERS, (1) CARGO FLOOR AREA AND (1) BACK OF TAIL€ATE (UP TO 1 1 BODIES) H-4 7 BLADE/ 4 PIN TRAILER CONNECTOR KEEP FACTORY RECEIVER CAMFl CAMERA FORD PICK UP BED REMOVAL *-NOT FOR CHASSIS 360 DEGREE CAMERAOPTION'*' -,CHASSIS MUST BE EQUIPPED WITH FACTORY REAR VIEW CAMERA PROVISIONS*' VDOCURB SIDEVDOSTREET SIDE MK9SFSG FORD GAS MOUNTING KIT 98 SINGLE 232.00 426.0000 426.O0 0.0000 0.00 Continued QUOTATION QTY PART NO./DESCRIPTION UNIT PRICE EXT PRICE J 232.0000 . . Item 8 Page 4 of 13 ROYAL TRUCK BODY 24200 S. MAIN STREET CARSON, CA 90745 PHONE: 562-633-9951 FAX: 866-346€103 THANK YOU FOR CHOOSING ROYAL TRUCK BODYI!I RECEIVED BY (PRINT NAME) RECEIVED BY (SIGN)DATE CA STZ ln Consid€ration ol albwing you lo aemove your vehicle from our premises prior to full paymenl ol the underlying wgrk order, lh6 undersened as ;uthorized agerrtior SALES ORDER # 0475570 , horeby agr;s that if any litigation arises out of this tEnsaction the prevailing party shall be entilled to .oimbursement for court costs and allomey's fees. Page 3 of4 75570 DATE ENTERT 1t42024 TRUCK ORIGIN DLR-Drop )ATE REOUESTED WRITTEN BY TC SALESMAN TC TER R MS OATE PROMISED 9i 9/9999 END USER (IF DIFFERENTTHAN SOLD TO) CITY OF VERNON TAX SCHED CA STZ VW CUSTOMER NO:NATFLEE S o L D NATIONAL AUTO FLEET GROUP 490 AUTO CENTER WATSONVILLE, CA 95076 S CIry OF VERNON H PUBLIC WORKS I4305SANTAFEAVE P 'SEE LINES FOR INSTRUCTIONS Los Angeles, CA 90058 CUST ORDER NO TERMS NET 30 SHIP VIA ROYAL TRUCK ETA CUSTOMER NAME CONNIE SO CUSTOMER PHONE NO 5626840642 |IAKE TRUCK Ford YEAR 24 MODEL x3c164 COLOR WHITE CA DIM 56 AUX TANK CONFIG DEF TANK LOCI AXLE TYPE I o, o"* STOCK NO.V.I,N, NO.BED wlDTH 49 COMPT DEPTH 22 OA WIDTH 93 FUEL TYPE CAB TYPE 625.00 536.00 Freioht: Net Order Sales Tax ATSONVILLE RAND TOTAL: 175.00 16,133.00 0.00 16,308.00 I 1 FGPK FORD GAS PICK UP BED REMOVAL KIT, INCLUDING PICKUP BED REMOVAL AND DISPOSAL AND FORD FUEL KIT...TURN INDICATORS MAY NEED TO BE FLASHED AT THE DEALERSHIP'"-" 625.0000 1 POt PRE.DELIVERY INSPECTION DELIVERY TO CITY OF VERNON UPON COMPLETION. OELIVERY CHARGE NOTATED IN FREIGHT FIELD 536.0000 *'NOTE*' MAIL DELIVERY PACKET, FINAL DELIVERY PAPER WORK AND ORIGINAL WEIGHT CERT TO NAFG FOR REGISTRATION* STREET SIDE ]URB SIDE . . Item 8 Page 5 of 13 I ROYAL TRUCK BODY 24200 S. MAIN STREET CARSON, CA 90745 PHONE: 562-633-9951 FAX: 866-346-6103 THANK YOU FOR CHOOSING ROYAL TRUCK BODY!!! RECEIVED BY (PRINT NAME) RECEIVED BY (SIGN)DATE CA STZ ln Considerdtion ot alblving you to remove your vehicle from our Oreirtseq -p.igr -lqfulUEImenl ol th€ undertying work order. the undesigned as iuuorized agentior SALES ORDER # 0475570 . herebv aorees that it any litigation arises out of this transaction the prevailing party shall be entitled to reimbursement for court costs and attomey's fees Page 4 of 4 75570 OATE ENTERI 1t8t2024 TRUCK ORIGIN DLR-Drop )ATE REQUESTED SALESMAN TC TERR DATE PROMISED 9/9/9999 WRITTEN BY TC END USER (F DIFFERENT THAN SOLD TO) CITY OF VERNON TAX SCHEO CA STZ VW L D NATIONAL AUTO FLEET GROUP 490 AUTO CENTER WATSONVILLE, CA 95076 S CITY OF VERNON H PUBLIC WORKS I4305SANTAFEAVE P 'SEE LINES FOR INSTRUCTIONS Los Angeles, CA 90058 NATFLEECUSTOMER NO: CUSTOMER PHONE NO 5626840642 TERMS NET 30 SHIP VIA ROYAL TRUCK ETA CUSTOMER NAI,IE CONNIE SO CUST ORDER NO COLOR WHITE CA DIM 56 AUX TANK CONFIG AXLE TYPE 4X2 DRW DEF TANK LOCeIAXE TRUCK Ford 24 YEAR MODEL x3c164 CAB TYPEBED WIDTH 49 COMPT DEPTH 22 OAwlDTH 93 FUEL TYPESTOCK NO.V.I-N, NO VDOSTREET SIDE URB SIDE lEL National Auto Fleet Group AnnL David Dao 1330 W Main St Alhambra, CA 9'180'l 175.00 16,133.00 0.00 16,308.00 N L LE RAND TOTAL Freioht: Net Order: Sales Tax QUOTATION EXT PRICEUNIT PRICEQTYPART NO./DESCRIPTION MS . . Item 8 Page 6 of 13 1010112024.0A:01 Sell, service, and deliver letter ENGINE Code Description 99A Engine: 6.81 2V DEVCT NA PFI V8 Gas, (STD) TRANSMISSION Code Description 44F Transmission: TorqShift-G 10-Speed Automatic, (STD) Code Description 64K Wheels: 17" Argent Painted Steel, (STD) TIRES Code Description TD8 lires: LT245l75Rx17E BSW A/S (6), (STD) PRIMARY PAINT Code Description z1 Oxford White SEAT TYPE Gode Description AS Medium Dark Slate, HD Vinyl 40120140 Split Bench Seat, -inc: center armrest, cupholder, storage and driver's side manual lumbar AXLE RATIO Code Description X4L Limited Slip w/4.30 Axle Ratio, (STD) ADDITIONAL EQUIPMENT Code Description 67E 250 Amp Alternator (Gas) 153 Front License Plate Bracket, -inc: Standard in states requiring 2 license plates and optional to all others Platform Running Boards 91G Amber-Wht 360 Deg LED Warn Strobes (Pre-lnstalled), -inc: dual beacon 611 Front Wheel Well Liners (Pre-lnstalled) 66S Upfitter Switches (6), -inc: Located in overhead console httpsr/nationalautofleetgroup.convorderRequesUSSDPrinU3T002?ws=Trus&se=True&ssdType=OrderRequest&tsbt=True&knm=True 5111 Vehicle Configuration Options WHEELS '188 . . Item 8 Page 7 of 13 76C 43C 120V 1400W Outlet, -inc: 1 indash mounted outlet and loutlet in the console 18A Ford Pro Upfit lntegration System, -inc: programmable and connected upfit integration system, Recommended for snowplows and trucks that will utilize upfit aftermarket equipment OPTION PACKAGE Code Description 620A Order Code 620A 1010112024 , 08.01 Sell, service, and deliver lener httpsJ/nationalautofleetg.oup.cofirorderRequesUSSDPrinV3T002?ws=True&se=True&ssdType=OrderRequest&tsbFTrue&knm=True 6111 Exterior Backup Alarm (Pre-lnstalled) . . Item 8 Page 8 of 13 2024 FleeUNon-Retail Ford Super Duty F-350 DRW XL 4WD SuperCab 8'Box 164" WB WINDOW STICKER 1010112024 , 08101 Sell. service, and deliver letter 2024 Fotd Super Duty F-350 DRW XL 4WD Supercab 8' Box 164" WB CODE x3D X4L 67E 153 MODEL 2024 Fofd Super Duty F-350 DRW XL 4WD Supercab 8' Box 164" WB 99A 44F 64K TD8 21 AS OPTIONS Engine: 6.812V DEVCT NA PFI VB Gas, (STD) Transmission: TorqshiftG 1 0€peed Automatic, (STD) Wheels' 17'Argent Painted Steel, (STD) rires: LT245f75Rx17E BSWA/S (6), (STD) Oxford White Medium Oark Slate, HD Vinyl 40/20/40 Split Bench Seat, -inc: center armrest, cupholder, storage and drive/s side manual lumbar Limited Slip d4.30 Axle Ratio, (STD) 250 Amp Altemator (Gas) Front License Plate Bracket, -inc: Standard in states requiring 2 license plates and optional to all others Phtform Running Boards Amber-Wht 360 Deg LED Wam Strobas (Pre-lnstalled), -inc: dual beacon Front Wheel Well Liners (Pre-lnstalled) Upfitter Switches (6), -inc: Located in overhead console Exterior Backup Alarm (Pre-lnstalled) 120Vl400W Outlet, -inc: 1 in-dash rnounted outlet and loutlet in the console Ford Pro Upfil lntegration System, -inc: programmable and connected upfit integration system, Recommended for snowplows and trucks that will utilize upfit afrermarket equipmenl Order Code 6204 MSRP $52,830.00 $0.00 $0.00 s0.00 $0.00 $0.00 $0.00 $0.00 $85.00 $0.00 $445.00 $650.00 $180.00 $165.00 s175.00 $175.00 $400.00 $0.00 188 91G 611 66S 76C 43C 18A 620A Please note selected options override standard equipment $s5,10s.00 $0.00 $1,995.00 $57,100.00 Est City: N/A MPG Est Highway: N/A MPG Est Highway Cruising Range: N/A mi https://nationalautofleetgroup-corn/OrderFl€quesusSDPrinU37002?ws=True&se=True&ssdType=OrderRequest&tsbt=True&knm=Truo 7t11 SUBTOTAL Adveru Adjustrnents Manufacturer Oestination Charge TOTAL PRICE . . Item 8 Page 9 of 13 1010112024.0a:01 Sell, service, and deliver letter Any performance-related calculations are offered solely as guidelines. Actual unit performance will depend on your operating condilions. Notes 8111 . . Item 8 Page 10 of 13 10n1t2024,0a]o1 Standard Eguipment MECHANICAL Sell, service, and deliver letter Engine: 6.81 2V DEVCT NA PFI V8 Gas -inc: Flex fuel (STD) Transmission: TorqShift-G 10-Speed Automatic -inc: SelectShift and selectable drive modes: normal, eco, slippery roads, tow/haul and off-road (STD) Limited Slip w/4.30 Axle Ratio (STD) EXTERIOR Wheels: 17" Argent Painted Steel -inc: Hub covers/center ornaments not included (STD) Ttres: Lf245l75Rx17E BSW A/S (6) -inc: Spare may not be the same as road tire (STD) 50-State Emissions System Transmission w/Oil Cooler Electronic Transfer Case Part-Time Four-Wheel Drive 78-Amp/Hr 750CCA Maintenance-Free Battery w/Run Down Protection 160 Amp Alternator Class V Towing Equipment -inc: Hitch, Brake Controller and Trailer Sway Control Trailer Wiring Harness 6877# Maximum Payload GWVR: 14,000 lb Payload Package HD Shock Absorbers Front And Rear Anti-Roll Bars Firm Suspension Hydraulic Power-Assist Steering 34 Gal. Fuel Tank Single Stainless Steel Exhaust Dual Rear Wheels Auto Locking Hubs Front Suspension w/coil Springs Solid Axle Rear Suspension w/Leaf Springs 4-Wheel Disc Brakes w/4-Wheel ABS, Front And Rear Vented Discs, Brake Assist and Hill Hold Control Regular Box Style Steel Spare Wheel Full-Size Spare Tire Stored Underbody w/Crankdown Clearcoat Paint https://natjonalaulofleetgroup.convorderRequesysSDPrinU3T002?ws=True&se=True&ssdType=OrderRequest&tsbFTrue&knm=True 9/11 ADDITIONAL EQUIPMENT . . Item 8 Page 11 of 13 Black Front Bumper w/Black Rub Strip/Fascia Accent and 2 Tow Hooks Black Rear Step Bumper Black Side Windows Trim and Black Front Windshield Trim Black Door Handles Black Power Heated Side Mirrors w/Convex Spotter, Manual Folding and Turn Signal lndicator Light Tinted Glass Variable lntermittent Wipers Aluminum Panels Black Grille Tailgate Rear Cargo Access Reverse Opening Rear Doors Tailgate/Rear Door Lock lncluded dPower Door Locks Boxside Steps Autolamp Auto On/Off Aero-Composite Halogen Daytime Running Lights Preference Setting Headlamps w/Delay-Off Cargo Lamp w/High Mount Stop Light Perimeter/Approach Lights Radio wiSeek-Scan, Clock and Speed Compensated Volume Control Fixed Antenna SYNC 4 -inc: 8" LCD capacitive touchscreen Mswipe capability, wireless phone connection, cloud connected, AppLink w/app catalog, 91'1 Assist, Apple CarPlay and Android Auto compatibility and digital owner's manual 2 LCD Monitors ln The Front 4-Way Driver Seat -inc: Manual Recline and Fore/Aft Movement 4-V'lay Passenger Seat -inc: Manual Recline and Fore/Aft Movement 6040 Folding Split-Bench Front Facing Fold-Up Cushion Rear Seat Manual Tllt/Telescoping Steering Column Gauges -inc: Speedometer, Odometer, Oil Pressure, Engine Coolant Temp, Tachometer, Transm ine Hour Meter, Trip Odometer and Trip Computer tsslon Fluid Temp, Eng Power Rear Windows FordPass Connect 5G Mobile Hotspot lnternet Access Rear Cupholder Remote Keyless Entry illntegrated Key Transmitter, llluminated Entry and Panic Button Cruise Control w/Steering Wheel Controls Manual Air Conditioning HVAC -inc: Underseat Ducts llluminated Locking Glove Box 10101t2024. 08,01 Sell. service, and deliver letter httpsi//nataonalautofleetgrcup.convorderRequesUSSDPrinU3T002?ws=Tn e&se=True&ssdType=OrderRequesl&tsbt=True&knm=True 10/11 Manual Extendable Trailer Style Minors Fixed Rear Window Cab Clearance Lights Radio: AM/FM Stereo w/MP3 Player -inc: 4 speakers . . Item 8 Page 12 of 13 lnterior Trim -inc: Chrome lnterior Accents Full Cloth Headliner Urethane Gear Shifter Material HD Vinyl 40120140 Split Bench Seat -inc: center armrest, cupholder, storage and driver's side manual lumbar Day-Night Rearview Mirror Passenger Visor Vanity Mirror Full Overhead Console w/Storage and 212Y DC Power Outlets Front Map Lights Fade-To-Off lnterior Lighting Full Vinyl/Rubber Floor Covering Pickup Cargo Box Lights Smart Device Remote Engine Start lnstrument Panel Covered Bin and Dashboard Storage Power 1st Row Windows w/Driver And Passenger 1-Touch Up/Down Driver lnformation Center Trip Computer Outside Temp Gauge Digital/Analog Appearance Seats wA/inyl Back Material Manual Adjustable Front Head Restraints and Manual Adjustable Rear Head Restraints Securilock Anti-Theft lgnition (pats) lmmobilizer 212V DC Power Outlets Air Filtration AdvanceTrac w/Roll Stability Control Electronic Stability Control (ESC) And Roll Stability Control (RSC) ABS And Driveline Traction Control Side lmpact Beams Dual Stage Driver And Passenger Seat-Mounted Side Airbags Tire Specific Low Tire Pressure Warning Dual Stag e Driver And Passenger Front Airbags dPassenger Off Switch Safety Canopy System Curtain 1st And 2nd Row Airbags Outboard Front Lap And Shoulder Safety Belts -inc: Rear Center 3 Point and Height Adjusters Back-Up Camera '1010112024.08i01 Sell, service, and deliver letter htps://nationalautofeetgroup.com/OrderRequesvsSDPrinU3T002?ws=True&se=True&ssdType=OrderRequest&tsbt=True&knm=True Delayed Accessory Power Power Door Locks 11111 . . Item 8 Page 13 of 13 City Council Agenda Report Meeting Date:February 20, 2024 From:Robert Sousa, Chief of Police Department:Police Submitted by:Nicholas Perez, Lieutenant - Patrol Division Subject Purchase Order with D&R Office Works, Inc. Recommendation A. Approve the issuance of a Purchase Order with D&R Office Works, Inc. for the purchase of chairs and workspaces for the Police Department, for a total amount not-to-exceed $21,679; and B. Authorize a contingency amount of 8%, or $1,735 for unforeseen price increases or substitutions due to inventory availability, and grant authority to the City Administrator to issue Change Orders for an amount up to the contingency amount, if necessary. Background The Vernon Police Department (PD) is in the process of replacing cabinetry and workspaces in the Evidence Room and chairs throughout the Department. The plan includes storage space and cabinetry in the evidence-processing areas, which have not been furnished in nearly twenty (20) years. The chairs to be replaced have been in use for over ten (10) years. Staff is working with D&R Office Works, Inc. (D&R) to purchase twenty-eight (28) commercial-grade chairs for existing workspaces. D&R has given a six-week window to deliver and install the new furniture. As a registered participant of OMNIA Partners, a cooperative purchasing organization, the proposed purchase from D&R is exempt from competitive bidding requirements pursuant to Vernon Municipal Code (VMC) Section 3.32.110(A)(5b), which exempts, “Contracts for supplies, equipment or services that can be purchased in cooperation with other public agencies, associations or when supplies, equipment or services can be purchased from a vendor offering the same prices, terms and conditions as in a previous award from the City or another public agency either by competitive bid or through a negotiated process and, in the opinion of the Finance Director, it is to the advantage of the City to do so.” OMNIA Partners provides competitively solicited cooperative purchasing contracts that comply with the City’s purchasing requirements. Per VMC 3.32.030(B), City Council approval is required if, in the twelve (12) months preceding the effective date of a proposed new, renewed, or otherwise amended contract, the City has paid or awarded the vendor more than $100,000. Within the past twelve (12) months, the City has paid or awarded D&R a total of approximately $88,834 in contracts. Fiscal Impact The fiscal impact is not-to-exceed $23,414 including an eight percent contingency. Sufficient funds are available in General Fund, Police Department,Capital Equipment Non-Auto Account No. 011-030-300-660015, and Supplies Account No. 011-030-300-522000 for the current fiscal year. Attachments 1. D&R Office Works, Inc. Proposal. . Item 9 Page 1 of 1 LT NICK PEREZ CITY OF VERNON -PD-LOWER LEVEL 4305 SANTA FE AVE VERNON CA 90058 323-583-8811 x116 SOLD TO:SHIP TO: PROPOSAL P: E: D&R OFFICE WORKS1/30/2024 LT NICK PEREZ 3040-R5 Part Number Part DescriptionQty Sell Ext Sell DATE SALESPERSONCUSTOMER NO CUSTOMER PO NOPROPOSAL NO Line # OMNIA CONTRACT R1918041 $0.00 $0.001 PRICES SUBJECT TO AN APPROX 5-8% PRICE INCREASE IN MARCH 2024 1 $0.00 $0.002 ALL COLORS TO BE CONFIRMED.1 $0.00 $0.003 925 1560-Y2-A00 Strata - Mid-Back, Synchro-Tilt Control, Armless4 $420.00 $1,680.004 GRADE-CFabric Grade Selection Fabric Grade C CANTERGrade C Fabrics Momentum - Canter ONYX3022Canter Colors Onyx 3022 BFFrame Color Black Frame BA2BBase Selection BA2B 26" Aluminum Base - Black Powder Coat C4Casters Selection C4 Heavy Duty Casters SSSeat Slider Selection Seat Slider 2.5" Side Paddle Activated HDHeavy Duty Multi-Shift Option (350 lbs.) Selection Heavy Duty Upgrade ~CAL TB 133 Fire Barrier No Cal TB 133 (standard upholstery) 925 1560-Y2-A9B Strata - Mid-Back, Synchro-Tilt Control, A9 Height & Width Adj. Black Arms 23 $465.00 $10,695.005 GRADE-CFabric Grade Selection Fabric Grade C CANTERGrade C Fabrics Momentum - Canter ONYX3022Canter Colors Onyx 3022 BFFrame Color Black Frame BA2BBase Selection BA2B 26" Aluminum Base - Black Powder Coat C4Casters Selection C4 Heavy Duty Casters SSSeat Slider Selection Seat Slider 2.5" Side Paddle Activated HDHeavy Duty Multi-Shift Option (350 lbs.) Selection Heavy Duty Upgrade ~CAL TB 133 Fire Barrier No Cal TB 133 (standard upholstery) 925 2910-Y2-A36 Cortina - High-Back, Synchro-Tilt Control, A36 8 Way Adj. Arms1 $575.00 $575.006 ~Ballistic Nylon Selection No Ballistic Nylon L3Fabric Grade Selection Top Grain - Leather/Vinyl L31L3 Highlands Leather Colors Black Page 1 of 3 . . Item 9 Page 1 of 6 D&R OFFICE WORKS1/30/2024 LT NICK PEREZ 3040-R5 Part Number Part DescriptionQty Sell Ext Sell DATE SALESPERSONCUSTOMER NO CUSTOMER PO NOPROPOSAL NO Line # BA12PBase Selection BA12P 27" Mid-Profile Aluminum Base - Polished C6Casters Selection C6 Large Diameter Carpet Casters ~CAL TB 133 Fire Barrier No Cal TB 133 (standard upholstery) HON HFSC183640A Flagship Stg Cab 39 1/8Hx36Wx18D A Pulls-2 Adj Shlf2 $616.44 $1,232.887 .XLock/Omt Opts OMT Core to Order Key Alike $(P1)Select Paint Color P1 Paint Opts .P28Select Grade 1 Paint Fossil HON HF23C Lock Core Replacement Kit Brushed Chrome2 $19.69 $39.388 .X114ESelect Key Number 114E HON HSISLAUTNPNB4818S 1 Islds Top 18Dx48W Span 12 $180.05 $360.109 $(L1STD)Laminate Grade Options Grd L1 Standard Laminate .LFW1Select Grade 1 Laminate Finish Florence Walnut .FWSelect Edgeband Color Florence Walnut HON HLSL48TW WM Tackboard for 48W WM Overhead2 $167.20 $334.4010 $(A)Fabric Selection Grd A Fabric .LNGrd A Fab Landscape 25Select Landscape Fabric Color Umber HON HF23C Lock Core Replacement Kit Brushed Chrome6 $19.69 $118.1411 .X113ESelect Key Number 113E HON HTWTH Acc Hrztl Wall Track for OH Storage-60"W3 $35.11 $105.3312 .PSelect Paint Finish Black HON HRVOH36FM Abound Overhead-Metal Flipper Door 36"3 $229.20 $687.6013 $(P1)Select Paint Color P1 Paint Opts .P28Select Grade 1 Paint Fossil .XSelect Lock Option Omit Lock HON HFSC183640A Flagship Stg Cab 39 1/8Hx36Wx18D A Pulls-2 Adj Shlf3 $616.44 $1,849.3214 .XLock/Omt Opts OMT Core to Order Key Alike $(P1)Select Paint Color P1 Paint Opts .P28Select Grade 1 Paint Fossil HON HSISLAUTNPNB3618S 1 Islds Top 18Dx36W Span 13 $148.91 $446.7315 $(L1STD)Laminate Grade Options Grd L1 Standard Laminate .LFW1Select Grade 1 Laminate Finish Florence Walnut .FWSelect Edgeband Color Florence Walnut HON HLSL36TW WM Tackboard for 36W WM Overhead3 $146.52 $439.5616 $(A)Fabric Selection Grd A Fabric .LNGrd A Fab Landscape Page 2 of 3 . . Item 9 Page 2 of 6 D&R OFFICE WORKS1/30/2024 LT NICK PEREZ 3040-R5 Part Number Part DescriptionQty Sell Ext Sell DATE SALESPERSONCUSTOMER NO CUSTOMER PO NOPROPOSAL NO Line # 25Select Landscape Fabric Color Umber LEAD TIME 4-6 WEEKS1 $0.00 $0.0017 $18,563.44Sub Total: Delivery and Installation $1,100.00 $1,100.00 Sales Tax $2,015.50 $2,015.50 Total:$21,678.94 Terms: 50% Deposit - Balance C.O.D.- Unless an account has been set up Unless otherwise noted, delivery and installation are during normal business hours. Area to be cleared of all existing furniture and obstructions prior to delivery. Unless otherwise noted, all quotes are based on ground level delivery APPROVED BY_______________________________DATE____________ Page 3 of 3 . . Item 9 Page 3 of 6 VERNON PD-LOWER LEVEL EVIDENCE add L-Braket to wall for suppo BLOCK L VERNON PD-LOWER LEVEL HALLWAY lock wal 60 s,,: @ m x. 36 5ffi'5ffi' 36 5b8' . . Item 9 Page 4 of 6 TACKBOARD HALLWAY . . Item 9 Page 5 of 6 EVIDENCE ROOM TACKBOARD . . Item 9 Page 6 of 6 City Council Agenda Report Meeting Date:February 20, 2024 From:Todd Dusenberry, General Manager of Public Utilities Department:Public Utilities Submitted by:Adriana Ramos, Management Analyst Subject Purchase Order with Charles P. Crowley Company Recommendation A. Find that the proposed action is categorically exempt from California Environmental Quality Act (CEQA) review, in accordance with CEQA Guidelines Section 15301, because installation of monitoring equipment consists of minor alteration of existing structures/facilities and involves negligible or no expansion of an existing use; B. Accept the bid from Charles P. Crowley Company as the lowest responsive and responsible bidder and reject all other bids; and C. Approve and authorize the issuance of a purchase order with Charles P. Crowley Company for the procurement of turbidity monitoring equipment, for a total amount not-to-exceed $106,228.14. Background Vernon Public Utilities (VPU) owns and operates seven active groundwater wells aged 22 to 70 years old. Due to age and water chemistry, well casings degrade and can develop holes which may allow silt, sand, or gravel to escape and be pumped out of the well. This kind of damage can get progressively worse, allowing more silt, sand, or gravel to pass through the well casing and increasing the turbidity (measure of relative clarity) of the water. Turbidity sensors enable continuous monitoring of water running through a pipe, indicating any silt or sand outside normal water quality limits. Staff proposes to procure six turbidity and suspended solid sensors for installation on six of its seven active wells. The remaining well is a low producer that VPU is considering placing on inactive status. Turbidity or suspended solids detected above set water quality limits would result in the facility being turned off for evaluation, which prevents or mitigates potential water quality issues. This equipment is crucial to the longevity and reliability of VPU’s wells. This equipment could also prevent catastrophic failure of a well via continuous monitoring and indication of any potential water quality issues. In accordance with Vernon Municipal Code Section 3.32.070, on October 12, 2023, staff issued a Notice Inviting Bids (NIB) for Turbidity Monitoring Equipment. The NIB was published in the local newspaper, the Huntington Park Bulletin, and advertised on the City's Planet Bids platform. Three bid packages were received by the October 26, 2023 deadline. However, two bids were deemed to be non-responsive as they did not follow the bidding requirements outlined in the NIB. Staff reviewed the bid received from Charles P. Crowley Company (Crowley) and deemed it a responsive and responsible bid. Staff recommends the City Council approve a Purchase Order with Crowley in the amount of $106,228.14, which includes estimated taxes and freight, for the procurement of turbidity monitoring equipment. . . Item 10 Page 1 of 2 Fiscal Impact Approval of this action would require an appropriation $106,228.14 for the procurement of the turbidity monitoring equipment in Water Fund, Capital Outlay, Account No. 058-070-700-660000 from available Water Fund Unassigned Fund Balance. Attachments 1. Charles P. Crowley Company - Bid . . Item 10 Page 2 of 2 ' '~ CHARLES P. ~~ .~ CROWLEY Since 1932 C O M PA N Y October 26, 2023 City of Vernon 4305 Santa Fe Avenue Vernon, CA 90058 Attn: City Clerk 15861 Business Center Drive Irwindale, CA 91706 USA Phone: (626) 856-5656 Fax: (626) 856-5658 Email: sales@cperowley.com Web: www.cperowley.com Ref: REQUEST FOR BIDS —Turbidity Monitoring Equipment for the Department of Public Utilities FORMAL BID DUE Wednesday October 26, 2023 by 2:00 PM PDT Sub: BID —CHARLES P. CROWLEY COMPANY Gentlemen, Thank you for the opportunity to provide a proposal for the above referenced project. Attached is our proposal to furnish the equipment as outlined in the Schedule of Bid Prices including required documentation as follows: • Schedule of Values —Turbidity Monitoring Equipment • Exhibit "A" —Affidavit of Non-Collusion • Bidder's Statement of Qualifications —Including Signature and Corporate Seal • Hach Equipment Supplemental Data for Owner Review Our proposal is an alternate to the Endress and Hauser (E+H) equipment specified. Hach is equivalent to or exceeds E+H specification requirements for all equipment in this request for proposal. We have attached product datasheets and installation manuals for the City's use in evaluating our proposal. Should our pricing be the lowest responsible bid for this project, we look forward to working with the City of Vernon. Regards, HARLES P. CROWLEY COMPANY -~ ~ fT Blancett Chief Estimator Encl: Schedule of Bid Prices (1 pg), Exhibit A —Affidavit of Non-Collusion (2pgs), Bidder Statement of Qualifications (8pgs), Hach Solitax sc Turbidity and TSS Sensor Technical Data (4pgs), sc4500 Digital Controller Technical Data (4pgs), Solitax Removal System —Install Drwg (1 pg), and Solitax Removal System Installation Instructions (12pgs) . . Item 10 Page 1 of 23 SCHEDULE OF BID PRICES TURBIDITY MONITORING EQUIPMENT BIDDER: CHARLES P. CROWLEY COMPANY Item Description Units Quantity Lead Unit Cost Amount No. Time 1. Endress +Hauser EA 6 Turbimax CUS52D 25 Days $g,01g.00 $48,108.00 Turbidity Sensor (or e ual 2. Endress +Hauser EA 6 Cleanfit CUA451 25 Day, $4,811.00 $28,866.00 Retractable Assembl ore ual 3. Endress +Hauser EA 6 Liquiline CM442 5 Days $3,207.00 ~ 19,242.00 Transmitter (or e ual BID TOTAL $ 96,216.00 WRITTEN AMOUNT Ninety Six 'Thousand Two Hundred Sixteen Dollars Freight: Prepay and Add Sales and Use Tax: NOT Included Specific Requirements: 1. Inline insertion sensors only. Sensors shall be rugged and suitable for raw water, preferably sludge duty. Sensor will be mounted on the horizontal pipe at the well discharge, ranging in diameter from 10 to 15 inches. 2. Sensor shall be retractable without shutting down the process stream. If retracting/inserting the sensor is pressure limited, this limit should be no less than 29 PSIG (pounds per square inch gauge). 3. Sensor body, retracting assembly, and valves shall be stainless steel suitable for potable water. 4. Sensor shall befitted with 15-meter cable. 5. Transmitter/controller may be suitable for outdoor field-mounted or indoor panel-mounted. 6. Transmitter/controller power is 24 VDC (volts direct current), with fault contact, alarm contact, and 4-20 mA (milliampere) analog signal for turbidity. Transmitter shall have a local display of Total Suspended Solids (TSS) and Nephelometric Turbidity Units (NTU). 7. Sensor cleaning shall only require periodic removal, soaking in suitable solution such as muriatic acid, and lens cleaning with a soft cloth, Vendor to provide recommended cleaning methods with bid, along with installation and operating manuals for each component. * - As the bid form allows "or equal" Charles P. Crowley Company Proposes the following Hach Equal PI'OC~t1CtS: Bid Item 1 Hach P/N LXV424.99.00100 - Solitax Inline Sc Turbidity (O.00I-4000NTU~ 1I1C1 SUS~eI1CleC~ SOIIC~S (0.001-SOg/L) Insertion probe with Wipe, Stainless Steel Construction, lOM Cable Hach + LZX848 SiVI Extension Cable Bid Item 2 Hach P/N LZX337, SS IIISEI't10I1 B111 Valve Slfety AI'I111tU1'e f01' SOI1taX IIllllle SC 1I1C1 LZXE)~O SS Non -Coped Welding flange for inline armature. ~- Bid Item 3 Hach P/N LXV525.99Z11551 SC4500 Controller- (2) Digital Sensor inputs, (S) 4-20mA Outputs, Prognosys, 24VDC Input Power, and 8001316 Panel Bracket for SC4500 INSTRUCTION TO BIDDERS . . Item 10 Page 2 of 23 5olitax sc Turbidity ~t ~~ Suspended Solids Sensor Applications • Drinking Water • Wastewater • Beverage Industrial Water • Power ~ 1 Cla ros r Enabled ~ Service Protected Accurate, color -independent suspended solids and turbidity measurements. Greater Accuracy, Less Maintenance Hach Solitax sc sensors provide accurate, color - independent measurement of turbidity and suspended solicJs in dr~in{<ing water, wastewater and industrial process applications. Aself-cleaning device prevents biological growth and interference of gas b~~bbles. This system's reliable performance and full data communication capability help improve process control and reduce treatment costs associated with poly~r~er use, digester volume, and sludge handling. Excellent Correlation to Laboratory Analysis Solitax sc sensors show an exceptional correlation to laboratory analysis. On-line measurement not only saves time on ~~anua(analysis, but also provides critical real-time measurements that can be used to operate the plant more efficiently. Fully Serviceable Sensors Conventional turbidity and suspended solids sensors are potted and are discarded when they no longer function. Solitax sc sensors are fully serviceable, which often doubles the useful life of the sensor. Easy One-point Calibration Factory calibrated in conforr~nity with DIN EN ISO 7027 for long-term calibration stability. Calibration is easy with a simple correction factor procedure. Multi-channel, Multi-parameter System Any two Solitax sc sensors can be installed on one Hach SC200 Controller. The same controller can also accommodate ar~y combination of parameters. All of Hach's model sc sensors are "'plug and play" with no complicated wiring or set-up procedure necessary. . . Item 10 Page 3 of 23 2 Solitax sc Turbidity ~r Suspended Solids Sensors Specifications* Model Parameter Measuring Range Turbidity Measuring Range TSS-Content Unit ~ Accuracy Repeatability i Response Time Calibration Method Certifications Flow Operating Temperature Range Pressure Limit For insertion in pipes INSERTION inline sc Suspended Solids, Turbidity 0.001 to 4000 NTU 0.001 mg/L to 50 g/L For immersion in open tanks INSERTION IMMERSION IMMERSION IMMERSION nighline sc t-line sc is-line sc hs-line sc Hight Range Turbidity Suspended Solids, Hight Range Suspended Solids, Turbidity Suspended Solids, Turbidity Turbidity x.001 to 4000 NTU 0.001 to 4000 NTU 0.001 to 4000 NTU 0.001 to 4000 NTU x.001 mg/L 0.001 mg/L 0.001 mg/L to 500 g/L to 50 g/L to 500 g/L Turbidity: User selectable—NTU, FNU, or TE/F Suspended Solids: User selectable—g/L, mg/L, ppm, or %solids Turbidity up to 1000 NTU; without calibration < 5% of the measured value 10.01 NTU; with calibration < 1 % of the measured value 10.01 NTU Suspended solids content: < 3 Turbidity: < 1 1 s < T90 < 300 s (adjustable) Turbidity: Formazin or Stablcal Standard (at 800 NTU). Suspended Solids: Sample specific, based on gravimetric TSS analysis with a correction factor procedure. CE certified to EN 61326-1, EN 61326/A1, EN 61326/A2, EN 61010-1 Max. 3 m/s (the presence of air bubbles affects the measurement) 0 to 40 °C (32 to 104°F~ Stainless steel: <6 bar or <60 m (87 psi) PVC: <1 bar or <10 m (14.5 psi) Material Optics Carrier and Sleeve: stainless steed 1.4571 or black PVC Wiper Arm: stainless steel 1.4581; Wiper Blade: silicone (standard) Optional: FKM/FPM (LZX578); Wiper Shaft: stainless steel 1.4571 Threaded cable fitting: stainless steel 1.4305 or white PVC Weight Sensor Insertion stainless steel: 2.4 kg (5.29 Ib.) Optics Carrier and Sleeve: stainless steel 1.4571 or black PVC Wiper Arm: stainless steel 1.4581; Wiper Blade: silicone (standard) Optional: FKM/FPM (LZX578); Wiper Shaft: stainless steel 1.4571 Threaded cable fitting: stainless steel 1.4305 or white PVC Immersion stainless steel: 1.38 kg (3.0 Ib.) Immersion PVC: 0.52 kg (1.2 Ib.) ~ Cable Length ~ ~ 10 m (optional extension cables available) ~ ~ 'Subject to change without notice C hach.com . . Item 10 Page 4 of 23 Solitax sc Turbidity £~ Suspended Solids Sensors 3 Lib Wlnddw Principle of Operation w;,~r Solitax sc is-line sensor with dual-beam optics and added w~~r A`~~ backscatter detector i~d ~~c~cg~n~r Bdt~tlt6P WlfldtfW • Dual infrared light beams. LED light source transmits light o at 45° to sensor face. `, • Nephelometric photoreceptors detect light at 90° to the ga• ~t~t~r transmitted light beam, o o .~ window • Backscatter photoreceptor (included on all models except the o pry......... ~' Solitax sc t-line) detects light at 140° to the transmitted light ~ o o 0 0 beam to measure suspended solids in heavily loaded sample o 0 streams. o°• Self-cleaning wiper, optional. ~ oo0 • T-line probes measure turbidity only. TS, HS, inline, and highline sensors measure either turbidity or suspended solids. ° o 0 Dimensions Hach Solitax sc sensors can be fixed to the rim of the tank for immersion applications or inserted directly through the sidewall of a pipeline for insertion applications. A variety of installation kits are available. Solitax sc Insertion Probe Solitax sc Immersion Probe 7 mm 7 mm (0.28 inches) — - (0.28 inches) ~o 315 mm ~ ~ m ~ (12.40 inches) / ~ .87 inches) ~ QJ 60 mm 60 mm (2.36 inches) (2.36 es) Installation /Mounting Installation for mounting Solitax sc for immersion in open (Stainless steel pole mount kit, Prod. No. LZY714.99.: 2000 mm p8.7 Inches) 130 mm ~1 Inches) - 280 mm (11.0 inches) Fixture with bap valve for mounting Solitax sc models inline aiae~4ig~e sensors in pipes., minimum pipe size 100 mm (4 -in.) (Prod. No. LZX337, max pressure 6 bar; -- T 625 mm hach.com . . Item 10 Page 5 of 23 4 Solitax sc Turbidity ~r Suspended Solids Sensors Ordering Information Common Configurations: Solitax sc Turbidity nd uspended Solids Analyzers with SC200 con oiler d sensors shown ersion in Open Tanks Applications 298 00 Turbidity Analyzer, t-line sc, P` C, with wiper (0.001 to 4000 N ) 29835 Turbidity and Suspended ~ lids Analyzer, is-line sc, stainless steel ~r th wiper (0.001 to 4000 NTU, 0.001 mg/ to 50 g/L) 2983600 Turbidity and High Ran e Suspended Solids Analyzer, hs-lin sc, stainless steel with wiper (0.001 to 00 NTU, 0.001 mg/L to 500 /L) Insertion in Pi s Applications (includes insert n mounting kit) 2983700 Turbidity and S spended Solids Analyzer, line sc, stain ss steel with wiper (0.001 4000 NTU 0.001 mg/L to 50 g/L) 2983900 T idity a High Range Suspended Sol s Ana zer, highline sc, stainless steel with ipe (0.001 to 4000 NTU, 0.001 /L to 500 g/L) NOTE.• 1. Power cords must be ordered s p ately. 2. Fixed point installation kit or ha drai oust kit must be ordered separately for all immersion analyzers. Individual Solitax c Senso Immersion Sensor LXV423.99.10000 Turbidity, t-line ,PVC with wiper (0.001 to 4000 N U) LXV423.99.120~ 0 Turbidity, t-line sc, VC without wiper (0.001 to 4000 NTU LXV423.99.1~ 100 Turbidity and Suspen d Solids, is-line sc, PVC with wiper (0.001 4000 NTU, 0.001 mg/L to 50 g/L) LXV423.~ .12100 Turbidity and Suspended olids, is-line sc, PVC without wiper (0.001 t 4000 NTU, 0.001 mg/L to 50 g/L) LXV4' 3.99.00100 Turbidity and Suspended Soli , is-line sc, stainless steel with wiper (0.00 to 4000 NTU, 0.001 mg/L to 50 g/L) LY 423.99.02100 Turbidity and Suspended Solids, t -line sc, stainless steel without wiper (0. 01 to 4000 NTU, 0.001 mg/L to 50 g/L) LXV423.99.10200 Turbidity and Suspended Solids, hs-li sc, PVC with wiper (0.001 to 4000 NT 0.001 mg/L to 500 g/L) 9.12200 Turbidity and Suspended Solids, \sc, PVC without wiper (0.001 +- NTU, 0.001 mg/L to 5~~' ) LXV423.99.00200 Tu '~'~tv and ~' pended Solids, hs-line sc, stag ,steel with wiper (0.001 to /~`' ~ NTU, 0.0 ' mq/L t0 500 g/L) LXV423.99 ^' 0 Turbidity and Suspende "'~~ids, hs-line sc, stainless steel without wipe "'` X01 to 4000 NTU, 0.001 mg/L to 500 g/L) Insertion Sensors LXV424.99.00100 Turbidity and Suspended Solids, inline sc, stainless steel with wiper (0.001 to 4000 NTU, 0.001 mg/L to 50 g/L) ' YV424.99.02100 Turbidity and Suspended Solids, inline sc, stainless steel without wiper (~''" to 4000 NTU, 0.001 mg/L to ~'' ) LXV424.99.00200 ~~~ity and S~ ~c~ ded Solids, highline sc, staff eel with wiper (0.001 to 4~~"' U, 0. ' rnq/L to 500 g/L) LXV424.99.~^" Turbidity and Suspende "'~~~ds, highline sc, stainless steel without wipe ~"' X01 to 4000 NTU, 0.001 mg/L to 500 g/L) Installation Accessories Y714.99.53120 Stainless Steel pole mount kit for Solita~ t-line, is-line, and hs-line immersion sensors, including 10 cm base ?~ d 2 m pole with sensor adapter 5738400 Insertion Mounting Kit inline and hline insertions ors (ball valve safety ar ure and action system). Kit includ ch pre-coped Carbon Steel Flange. -coped flanges are available AHA033NPT Ser orAdapte , traight 1-1/2 FNPT AHA034NPT ensor Adapter, elbo 1-1/2 FNPT 90° MH236B007 Handrail Mounting Kit (for sor to be used with either adapter abov eludes 1.5-inch diameter by 7.5-ft long C pipe and swivel/pivot/ pipe clamp assembl LZX337 Stainless steel ball valve safety armature/ extraction fitting for in-line and hi-line probes w/o welding flange, maximum operating pressure 6 bar/87 psi Stainless steel ball valve arm r m x ure 1 bar/14.5 psi LZX660 Non-coped stainless steel welding flange for insertion kit ~~~'— Non-coped carbon steel weldinn fi~~~^ — f ' HACH COMPANY World Headquarters: Loveland, Colorado USA United States: 800-227-4224 tel 970-669-2932 fax orders@hach.com Outside United States: 970-669-3050 tel 970-461-3939 fax int@hach.com hach.com LIT2472 Rev 10 C15 Printed in U.S.A. 0 OHach Company, 2022. All rights reserved. In the interest of improving and updating its equipment, Hach Company reserves the right to alter specifications to equipment at any time. ~- . . Item 10 Page 6 of 23 Applications Wastewafier Drinking Water Industrial • Other ~1Claros r Enabled Service Protected Ready for Now. Ready for the Future. Technologies are advancing rapidly, providing new levels of convenience, accuracy, and efficiency. Which is exactly why the SC4500 Controller from Hach° is designed to integrate easily into your current system while allowing you to upgrade as your capabilities advance, without having to replace inventory. With a wide range of analog and digital connectivity options and the availability of intelligent instrument and data management features, the SC4500 unlocks the future, fioday. Easy Adoption The familiar experience of a modern touchscreen, the ability to use your current Hach sensors, and the same footprint as the SC200, make installation and integration of the SC4500 Controller seamless. No Time for Downtime The SC4500's built-in predictive diagnostic software ensures measurement confidence and reduces the risk of unexpected equipir~ent downtime by enabling proactive maintenance planning via MSM, including step-by-step instructions. The Connectivity Options You Need The Controller provides local communication to SCADA or a PLC, as well as remote access through a secure, cloud- based connectivity option to integrate with Claros, the Water Intelligence System from Hach. From analog and advanced digital protocols to Wi-Fi, cellular or LAN, the SC4500 gives you the flexibility to adapt in a rapidly changing world. The power of Hach's real time controls (RTC) software is now hosted on the SC4500 controller. Take advantage of the potential energy, chemical and labor savings, from a simple and environmentally friendly solution. . . Item 10 Page 7 of 23 Technical Data* Description Microprocessor-controlled and menu-driven controller that operates the sensor Dimensions '/z DIN - 144 x 144 x 192 mm (5.7 x 5.7 x 7.6 in.) Weight 3.7 Ib (controller only, w/o modules) Display 3.5-inch TFT colour display with capacitive touchpad Enclosure Rating UL50E type 4X, IEC/EN 60529-IP 66, NEMA 250 type 4X Metal enclosure with acorrosion-resistant finish Operating -20 to 60 °C (-4 to 140 °F) (8 W (AC)/9 W (DC) sensor load) °F) Temperature Range -20 to 45 °C (-4 to 113 (28 W (AC)/20 W (DC) sensor load) °C Linear derating between 45 and 60 (-1.33 W/°C) Storage Conditions -20 - 70 °C (-4 - 158 °F), 0 - 95% relative humidity, non-condensing Altitude 3000 m (9842 ft) maximum Installation Category Category II Indoor/Outdoor Outdoor installation indirect sunlight or UV radiation requires UV protection screen and/or sunroof Pollution Degree 4 Protection Class I, connected to protective earth Power re uirements p AC controller: 100-240 VAC ±10%, 50/60 Hz; 1 A (28 W sensor load) DC controller: 24 VDC +15% -20%; 2.5 A (20 W sensor load) Measurements Two device digital SC connectors Two relays (SPDT); Wire gauge: 0.75 to 1.5 mm2 (18 to 16 AWG) ~' ~~ntroller Maximum swi * :100 - 240 VAC Relays Maximum switching currP ~ Pilot Duty M 'm' ~ ing power: 1200 VA Resistive/360 f DC controller ~ Maximum switching voltage: 30 VAC or 42 VDC Maximum switching current: 4 AResistive/1 A Pilot Duty Maximum switching power: 125 W Resistive28 W Pilot Duty Analog: Five 0-20 mA or 4-20 mA analog outputs on each analog output module Up to two analog Input modules (0-20 mA or 4-20 mA). Each input module replaces a digital sensor input. Communication Digital: (optional) Profibus DPV1 module Modbus TCP Profinet IO module Ethernet IP module LAN: Two Ethernet connectors (10/100 Mbps) Network Connectivity Cellular: External 4G Wi-Fi Used for data download and software upload. The controller records approximately 20,000 data points for USB Port each connected sensor. Compliance CE. ETL certified to UL and CSA safety standards (with all sensor types), FCC, ISED, KC, RCM, EAC, UKCA, Certifications SABS, C (Morocco) Warranty 12 months Compatible Network GSM 3G/4G (e.g. AT&T, T-Mobile, Rogers, Vodafone etc.) Technologies CDMA (e.g. Verizon) *Subject to change without notice. HACH . . Item 10 Page 8 of 23 3 Compatible Instruments / So x sc / V2.30 (2018) or higher A-,~~ sc / V1.02 or higher AN-ISE sc / V1.08 (2013) or higher N-ISE sc / V1.02 or higher Nitratax clear sc, Nitratax eco sc, Nitratax plus sc / V3.13 (2013) or higher Phosphax sc / V2.30 (2018) or higher Phosphax sc LR/MR/HR / V1.01 (2018) or higher TSS sc / V41.73 (2013) or higher Solitax sc / V2.20 (2013) or higher TU5300sc, TU5400sc / V1.34 (2017) or higher Dimensions ftware Version (Release Year) SS7 sc (in Bypass) / V1.06 (2006) or higher Ultraturb sc / V3.06 (2017) or higher 1720E / V2.10 (2006) or higher Sonatax sc / V1.15 (2016) or higher CL17sc / V2.7 (2019) or higher CL10sc / V1.14 (2013) or higher 9184sc, 9185sc, 9187sc* / V2.03 (2013) or higher Uvas plus sc / V3.01 (2017) or higher LDO 2 sc* / V1.22 (2013) or higher 3798sc* / V2.03 (2013) or higher 3700sc + Inductive Conductive Digital Gateway 6120800 / V3.00 (2017) or higher s6.35 mm~~' [a.25 in] Door Opening Details 3422sc, Analog 3400 +Contacting Cond. Digital Gateway 6120700 / V3.00 or higher pHD sc*, pHD-S sc / V3.10 (2016) or higher 1200-5 sc* / V2.04 (2013) or higher pHD analog +Digital Gateway 6120500 / V3.00 (2017) or higher RC and PC analog sensor +Digital Gateway for conventional analog pH and ORP sensors 6120600 / V3.00 (2017) or higher 8362sc* / V3.00 (2017) or higher *Hardware Version 1 of instrument is not supported Panel mounting climensra~s 132.6 mm 4x 11.4 mm [5.22 in] (0,45 in] ~ ~ 126.5 mm 136.1 mm [4.98 in] , , [5.36 in] _~__ ~ 4x 45 ° Top ar~d hot. 124.5 mm~J ~~ [4.90 in] ~'~~~ 4x 3.9 mm [0.15 in] Designed to Accommodate 3/4" to 2-1/2" Vertical / Horisontal Pipe HACH . . Item 10 Page 9 of 23 n Order Information Controller Change 99A to 99Z for 24VDC Input LXV525.99A11551 SC4500 Controller, Prognosys, 5x mA Output, 2 digital Sensors, without plug ""'~25.99E11551 SC4500 Controller, Prognosys, 5x mA Output, 2 digital Sensors, US ply ~~ LXV525.99A1 SC4500 Controller, Prognosys, Sx mA Output, 1 digital ~~ or, 1 mA Input, without plug LXV525.99E11541 SC4500 `~^~ler, Prognosys, Sx mA n~ ~*~~ , 1 digital Sensor, 1 mA Input, US plug LXV525.99AA1551 SC4500 Controller, Clare pd, 5x mA Output, 2 digital Sensors, without plug LXV525.99EA1551 SC4500 C~~' er, Claros-enabled, Sx mA ~ ,~'t 2 digital Sensors, US plug LXV525.99AA154~ 4500 Controller, Claros-enabled, Sx mA Output, 1 digita -^r 1 mA Input, without plug LXV~^'. EA1541 SC4500 Controller, Claros-enabled, Sx mA Output, 1 digital Sensor, 1 mA Inp , ' '~ nlug Additional configurations are available. Please contact Hach Technical Support or your Hach representative. Ac ssories LXZ524. 00042 SC4x00 Input Module LXZ525.99.D0 SC4x00 mA Output Module " Outputs) LXZ525.99.00002 C4500 Ethernet IP l ~• rade Kit LXZ525.99.00003 SC4 Modbu~ CP/IP Upgrade Kit LXZ525.99.00026 SC4500 E* net Cable M12 to M12 / C1 D2, 10 m LXZ525.99.00017 SC4~ 0 USB Stic LXZ524.99.00004 C4x00 UV Protection een LXZ524.99.000~' SC4x00 UV Protection Screen 'th Sunroof LXZ524.9~. 0033 SC4x00 Sunroof Visor LXZ~' 4.99.00036 SC4x00 Mounting Hardware Sunroof with or XZ524.99.00037 SC4x00 Sunroof with Visor ~ 1 Cla ros r► Enabled This instrument connects to Claros, Hach's innovative Water Intelligence System. Claros allows you to seamlessly connect and manage instruments, data, and process -anywhere, anytime. The result is greater confidence in your data and improved efficiencies in your operations. To unlock the full potential of Claros, insist on Claros Enabled instruments. ~ Service ~t~~ With Hach Service, you have a global partner who understands your needs and cares about delivering timely, high-quality service you can trust. Our Service Team brings unique expertise to help you maximize instrument uptime, ensure data integrity, maintain operational stability, and reduce compliance risk. World Headquarters: Loveland, Colorado USA ~ hach.com United States 800-227-4224 fax: 970-669-2932 email: orders@hach.com Outside United States 970-669-3050 fax: 970-461-3939 email: int@hach.com :<:Hach Company, 2023. All riyhts reserved. In the interest of improving and updating its equipment, Hach Company reserves the right to alter specifications to equipment at any time. D00053.53.35316.Jun23 . . Item 10 Page 10 of 23 F o ~a~ ~4~ 0 a s. ~s~ F s ~~ v .~ f~c —asgo ,", o ~$o o m L~~ c g a ~ E 0 U r ~"gu ~.cSz og~s 3u E 0 t .g g.g•` E ~ s ~.€ m~ W ~ ~ ~ ~~v i$~s °EF goO ~ c W U O 1° ~ Z_SA .~~ m a D ~ ~ .~ E ~ c 0 o~~~ g C ~Z~~ ~~~~ NO t~ agar o~~~ ~.~t a x;~# C ~'~~ ~~~~ B A ~''~'~ 8 7 6 5 4 3 n,aY snn 5 L 8 7 6 2 max. 140 1 F E D B M.n. oM• ror..~e.~o.an M.a~n.uw~.~~a v~»~~o x337 Sc M t~b ~ . C j~S Wn~nl TOM~~nc~ ~K~~n J~ mm VWrkstoff, HNDzeup: vaum.nrvarn. ~+latorl.l: o,~~Ma~ w^» BenennunglDesignation ~..~.~. ~.°5.2°,2'"°~. Sicherheitseinbauarmatur ~.a.~~k 23.052012 Baar SOLITAX a.~..~~. LAN6E ! Zeichnungsnummer / Dv~g.No.: BIatNSheet ".,....' _.," ...`.,. LZX337.TD.00000 ~. ' ~, of z3.as.zo~z w«. ,~ 1 ~. 5 =~~~+. ~^aN^Ylp~~.~. ~~~M1 ~~ Ers. Hlr Ausgabe crag A3 s~. . . Item 10 Page 11 of 23 099XZ7 LEEXZ7 . . Item 10 Page 12 of 23 B^ flpepH HHCTanayHAra/MOHraHca Ha npopy~a, npoverere eHHMarenHo scHVKH V NNCTPyKI{NN 38 NMCT8I18L'NA N R1 CI1a382NT@ f10 BP@M@ M2 NMCT0f1NP8M0T0. NHCTB- 118L~NATB TPA6B8 J{8 C@ N38bPW88 OT K8811N(~Nl{NPBH Cf101{N8I7NCT 8 Cb0T82iCT8N@ C MBCTHNT@ pasnopep6H 3a 6e3onacHocr. florpH~cere ce Hs6paHOTo Micro Ha HHcranayHATa qa rapaHrHpa 6esonacHa HHCTanayHA H eKcnnoaTayHa. flpogyKrbr e npegHaaMaveH egHHcreeHo as npHpbp- N(8HC/(1PNKP2f188MB H8 N3MQPBdTQI1HNT@ C0H30PN/f1PO,QyKTN H8 HACHMACH LANGE. BCAKO gpyro npHno~ceHNe Mo~ce qa HocH pHCK 3a norpe6HTenA. Pa6orHre no nogppb~acara H peMortra TPA688 (.~8 C@ N38bPW83T N3KJ1104NT8l1H0 OT OTOPN3NP8HNA OT/~@!1 38 06Cf1yNC88H8 H8 Kl7NBHTN. MOfBT /{8 C@ N3f10J1388T C8M0 OPN~NH871HN P232PBHN 48CTN N f1P2IlOPb48HN OT f1PON380({N- T@!lA f1PNH2,gt12NCHOCTN. BCNKBKBN N3M@H@NNA f10 fiPOAykTB BO,QAT ,QO 8HyJ1NP8H@ N8 BCN4KN oTrosopHocrN or crpaHa Ha npoHaeogHrena. Hecna3BaMero Ma HHcrpyKyHorre 3a ynorpe6a HnH N3f10l13B8HCT0 Ha flPO/{yKTB 38 l{8f1N, P83J1N4HN OT Te3N, 38 KONTO Q flP@~QH83M8Y8H, Mo~ce pa goeeqe qo cepHoar+o HapaHAsaHe Ha noTpe6Hrena NJHnH noepepa Ha o6opygeaHero. Pa6oraTa f10 38B8PAB8H8, TPAF>B8 (j8 Gb/{8 N3BbPW88H8 C8M0 OT K88I1Nf#1Nl{NPBNN 3288P4N1{N Cbf112CN0 DIN/EN ZH7 Nl7N OT C@PTN(~NL~NPBHN ~NPMN I70 EN 3E~-Z. Pn instalaci/montaii produktu si peclive ptect~te vsechny pokyny k instalaci a v pni- b~hu instalace tyto pokyny dodriujte. Instalaci musi provad~t kvalifikovanjr odbornik v souladu s mistnimi bezpe~nostnimi pPedpisy. Pecliv~ vyberte umisteni pro instalaci, ktere zajisti bezpe~nou instalaci a provoz. Produkt je ur~en pouze k upevn~ni/pnchyceni me~icich snima~u/produklu HACH/HACH LANGE. Jakekoli jinn pouiiti mule znamenat riziko pro uziva- tele. Udribu a opravy smi provadet vyhradn~ autorizovane oddeleni zakaznickjrch sluieb. Je dovoleno pouiivat pouze originalni n~hradni dily a pPislusenstvi doporucene vyrobcem. Jakekoli zmeny provedene na produktu zpusobi neplatnost ve§kery'ch zaruk. Nedodrieni techto pokynu nebo pouiivani produktu pro jiny uEel nei pro ktery' je ur~en maze zpusobit uiivateli vaine zran~ni anebo poskodit zaiizeni. PoVebne sva~ecske prate musi byt provedeny kvalifikovanym svaPecem vyhradne podle DIN/EN 287 nebo dodavatelem v souladu s EN 3834-2. DA Fer du installerer/monterer produktet, skal du laese alle installatlonsinstrukbonerne grundigt og felge dem under installeringen. Installationen skal udferes of en kvalificeret ekspert i overensstemmelse med alle lokale sikkerhedsbestemmetser. Vaelg sikker og beyeningsvenligt placering til installationen. Produktet er kun beregnet til at holds/fastgere HACH/HACH LANGE-malesensorer/-produkter. Enhver anden form for brag kan medfere skadesrisiko for brugeren. Vedligeholdelse og reparation ber kun udferes of en autoriseret kundeserviceafdeling. Der ma kun anvendes originals reservedele og tilbeher, der er anbefalet of producenten. Alle aendringer of produktet ophaever garantien. Hvis du ikke fmlger disse instruktioner tiller bruger produktet til et andet formal, end det er beregnet til, kan der forekomme alvorlige personskader og/tiller skader pa udstyreL Svejsearbejde ma kun udferes of DIN/EN 287 kvalificerede svejsere, tiller EN 38342 certificerede firmaer. D E Die Montageanleitung ist vor der Installa6on/Montage des Produktes sorgfaltig and vollstandig zu lesen and zu befolgen. Die Installation muss von einer Fachkraft (qualifiziertes Personal) unter Einhaltung alley lokal gultigen Sicherheitsvorschriften erfolgen. Der MontageoR ist so zu wahlen, dass sine sichere Installation and der sichere Betrieb gew~hrleistet ist. Die Verwendung des Produktes ist ausschlieRlich zum HaIteNBefestigen von HACHMACH LANGE Messsonden/Produkten vorgesehen. Jede andere Benutzung ist mit Risiken fur den Be- nutzer verbunden. Wartungs- and Reparaturarbeiten sollten nur vom autorisierten Kundendienst durchgefuhrt werden. Es durfen nur vom Hersteller empfohlene Originalersatz-and Zubehorteile verwendet werden. Anderungen am Produkt haben den Veriust jeglicher Haftungsanspriiche zur Folge. Nichtbeachtung dieser Anweisungen oder sine andere Verwendung des Produktes kann schwerwiegende Verletzungen der Anwender Oder Beschadigung am Gerat zur Folge haben. Die notwendigen SchweiRarbeiten durfen ausschliet3lich von entsprechend DIN/EN 287 qualifi- zierten SchweiRem durchgefuhrt werden, oder von Fachfirmen entsprechend EN 38342. E L nPIV dTTO Tf~V EyKOTCIQidOf~/TOTTOBETf~Qf~ TOV TiPOIOVTOS, bIQRaOT£ TTPOQEKTIKa Kql qK0- AOUef~QTE ORES TIS Obf~YIES EYKpT(IQTQQ(~S KpTCt T(~V £y K4TCIQTgUf~. H EYKQTCIQTUQf~ TTPEiTEI va npayNaTona~9si urrd Kar6~U~Aa eKnaibsuNcvo reXviKb Kai auN~wva Ne bl~ous rous romKoGs KavoviallouS aa~p6AsiaS. EmAE~Te Nia 9car~ rono9Fr~a~s nou 8a S~aacpa~iaci rev aa~paArj eyKarbaraa~ Kai Aenoupyia. To npoT6v npoopi{eras anoKAeivriKa yia r~ arr~Pi~Nauvbear~ Twv aia6r~r~pwv Ncrp~a~S/npoT6vrwv HACHlHACH LANGE. Orro~ab~jrrorc 6~Ur~ Xpr~a~ svbcXerai va evcXei KivSuvouS yea Tov XPnaT~• ~~ EPYaa~ES a~~~Pna~S Kai emaKeurjS 6a npFnei va eKrcAou- vTai anoicAeiaTiKa ano ro e~ouaiobor~NEvo TNrjYa sgun~pcTr~a~s neAarwv. Enirptnsrai n XP~a~ Ndvov rwv yvrjaiwv avralJ~aKriKwv Kai rwv a~caouop nou auviaT6 o KaTaaKeuaarrjS. OnoiEabrj- rroTe aAAaycS aTo npoibv aKupwvouv Tr~v Fu6uvr~ r~S srapeias. Ec nFpimwar~ nou bsv T~p~9ouv auTES ris ob~V~ES ~ XP~aiNonot~6ei ro npoidv yia biacpoperiKb aKon6 anb aurdv nou npoopi;e- rai, evbcXeTai va npo~~Bsi ao(3apbs rpauNanaN6s aTov XeipiaTrj KaJrj RA6R~ arov e{onA~aN6. Oi anaRouNevts ¢pyaaicS auyK6Mr~ar~S Aa npcnci va bic~aX6oGv an6 e~eibiKeuNcvo npoawmK6 auN~pwva Ne DIN / EN287 r~ an6 KaraaKcuaanKcS erapeict auNepwva Ne DIN 3834-2. E N Before installing/mounting the product, read all the installation instructions carefully and follow the instructions during installation. Installation must be carried out by a qualified expert in accordance with all local safety regulations. Take care to choose an installation location that will ensure safe installation and operation. The product is intended solely for holding/attaching HACH/HACH LANGE measuring sensors/products. Any other use may involve risks for the user. Maintenance and repair work should be carried out exclusively by the authorized customer service department. Only original replacement and accessory parts recommended by the manufacturer may be used. Any changes made to the product will nullify all liability. Failure to follow these instructions or use of the product for a purpose other than that for which it was intended may result in serious injury to the user and/or damage to the equipment. The required welding work must be performed exclusively in accordance with DIN / EN 287 qualified welders, or from contractors in accordance with EN 38342. E ~ Antes de instalar o fijar el producto, lea con atencibn todas las instrucciones de instalacibn y sigalas durance el montaje. La instalaci6n debe Ilevarla a Cabo un experto cualificado, de acuerdo con las normas de seguridad locales. Elija una ubicacibn para la insta- lacibn que garantice que ~sta y el funcionamiento del producto Sean seguros. EI producto solo esta disenado para sujetar o fijar sensores o productos de medicion de HACHlHACH LANGE. Cualquier otro use puede conllevar riesgos para el usuario. EI trabajo de mantenimiento y reparaci6n solo debe Ilevarse a Cabo por el departamento de atencion al clients autorizado. Sblo deben ublizarse las piezas de repuesto recomendadas por el fabricante. Cualquier cambio que se realice en el producto anulara coda responsabilidad. Si no se siguen estas instrucciones o si se utiliza el producto para un use distinto del use para el que fue disenado, el usuario puede sufrir heridas graves y/o se puede danar el equipo. Los trabajos de soldadura requeridos deben stir realizados exclusivamente por soldadores cualificados Begun DIN / EN 287, o por conVatis- tas de acuerdo a EN 3834-2. FI Ennen kuin asennat/kiinnitat tuotteen, lue kaikki asennusohjeet huolellisesti ja noudata niita. Tuotteen saa asentaa vain valtuutettu henkilo, ja asennuksessa on noudatettava kaikkia paikallisia turvallisuusmaarayksia. Asenna tuote sellaiseen paikkaan, johon asentaminen on turvallista ja jossa tuote toimii oikein. Tuote on tarkoitettu ainoastaan HACH/HACH LANGE -mittausanturieN-tuotteiden ripustamiseeNkiinnittamiseen. Muunlainen kaytto voi aiheuttaa vaaratilanteita kayttaj~lle. Huolto- ja kory'austyot saa tehda vain valtuutettu asiakaspalveluosasto. Tuotteessa saa kayttaa vain valmistajan suosittelemia alkuperaisia vara- ja lisaosia. Tuotteeseen tehdyt muutokset mitatoivat kaikki vastuut. Jos Haifa ohjeita ei noudateta tai jos tuotetta kaytetaan johonkin muuhun kuin sen varsinaiseen kayttotarkoitukseen, kayttajalle voi aiheutua vakavia vammoja ja/tai laite voi vaurioitua. Vain DIN / EN 287 mukaan hyv~ksytyt hitsaajat tai EN 3834-2 mukaiset urakoitsijat saavat tehda vaaditut hitsaustyot. R Avant I'installatioMe montage du produit, lisez attentivement toutes les instructions d'installation et suivez-les au cours de ('installation. L'installation dolt titre realisee par un expert qualifie conform~ment a toutes les reglementations de s~curite locales. Veillez a choisir un emplacement permettant d'assurer une installation et un fonctionnement en toute security. Ce produit est uniquement destine a maintenir/fixer des capteurs/equipements de mesure HACH LANGE. Toute autre utilisation entrainerait un risque pour I'utilisateur. Seul le service Gientele agree est autorise a effectuer les Vavaux de maintenance et de reparation. Seuls les pieces de rechange et les accessoires d'origine recommandes par ie fabricant doivent titre utilises. La modification du produit annule toute responsabilite. Le non-respect de ces instructions ou ('utilisation de ce produit a des fins autres que celles auxquelles it est destine risqueraient de gravement blesser I'utilisateur eVou d'endommager le materiel. Le travail de soudure requis doit titre realise exctusivement par des soudeurs qualifies en conformite avec DIN / EN 287, ou par prestataires conform~ment a EN 3834-2. Prije instalacije/postavljanja ure8aja, pailjivo procitajte sve upute za montaiu i pratite ih 6jekom postupka instalacije. Instalaciju mora provesti kvalificirani sVu~njak u skladu s lokalnim sigurnosnim propisima. Brizfjivo odaberite mjesto instalacije na kojem ce se postav- Ijanje uredaja i njegovo koristenje odvijati u sigurnim uvjelima. Uredaj je namijenjen iskljucivo za drianje/priEvr~civanje HACH/HACH LANGE mjernih senzora/uredaja. Upotreba uredaja u drugs svrhe mole predstavljati rizik za korisnika. Odriavanje i popravke smije provoditi isklju~ivo ovla§teni servisni odjel. Mogu se upotrebljavati samo originalni rezervni i dodatni dijetovi koje je preporucio proizvoBac. Bilo kakve izmjene izvr~ene na ure8aju ponistit ce njegovu pouzdanost. Nepo~tivanje ovih uputa ili upoUeba uredaja za svrhe za koje nije namijenjen mogu dovesti do ozbiljnih ortjeda osoba koje se njime koriste Jli ~tete na opremi. Potreban posao za zavarivanje mora biti izveden prema DIN / EN 287 od strane kvalificiranih varioca ili izvodaca radova prema EN 3834-2. H' t A term~k uzembe helyezese/rogzitese elott tekintse at a vonatkozb utasitasokat, es ~J taAsa is be azokat. Az uzembe helyezest kizar6lag szakember vegezheti, a hatalyos biztonsagi eloirasoknak megfeleloen. A telepiteshez biztonsagos uzemet szavatolb helyet va- lasszon. A termek kizarblag HACH/HACH IANGE meroberendezesek es keszulekek rogzitesere szolgal. Az ettol elt~ro barmilyen hasznalat kockazattal jar. A karbantartast es egyeb javitasokat kizar6lag az arra feljogositott ugyfelszolgalati reszleg vegezheti el. Csak a gyart6 altal ajanlott cserealkatreszek hasznalhatdak. A termeken vegzett barmilyen m6dositas a felelosseg kizarasat vonja maga utan. Az utasitasok be Hem tartasa, a termek megadott felhasznalasi teriilettol eltero celra valb alkalmazasa a kezelo sulyos seriileset eslvagy a berendezes karosodasat okozhatja. A szukseges hegesztesi munkakat csak DIN/EN 287 bizonyitvannyal rendelkezo hegeszto szakember, vagy EN 3834-2 minositessel rendelkezo szakc~g vegezheti. T Prima di installare/montare it prodotto, leggere le istruzioni sull'installazione e attenersi scrupolosamente ad esse durante I'installazione. L'installazione deve essere eseguita da personals qualificato in base alle norms di sicurezza locati. Scegliere con cura it panto di installazione per un'installazione corretta e un funzionamento sicuro. II prodotto e adatto esGusivamente per it sostegno/collegamento di prodottUsensori di misura HACHMACH LANGE. Qualsiasi altro utilizzo pub provocare lesioni all'utente. La manutenzione e gli interventi di riparazione devono essere eseguiti esclusivamente dal reparto assistenza clienti. II produttore consiglia di sostiluire gli accessori solo con ricambi originali. Qualsiasi modifica apportata al pro- dotto prevede I'esclusione da qualsiasi responsabilita. La mancata osservanza delta procedura di installazione o I'utiliuo inappropriato del prodotto possono provocare serie lesioni all'utente e/o danni all'apparecchiatura. II lavoro di saldatura richiesto deve essere effettuato esdusiva- mente in accordo alla direttiva DIN / EN 287 da saldatori qualificati o da costruttori in accordo a EN 3834-2. ~2 a~~£~11~1f~a~l~~t'~Z~~it~l(~~~<~~, ~If~l~[~~Z~atl.z<f,`'$ (~. ~${: AA~J1~~fZ8A.f$Z2F~a~P7r~i~hZ«tc 6~0 ~~aol~, HACH/HACH LANGE ~! ~ti+f—l~1a ~4~#~~~Zf3~Lx~~Z~to ~'mfLo»i~l~.l~, 1—+1'—o~~'Ffl..~l,~Zt~ ~l.Z<i~'~6~, ~xy iTi~'ic~{~~zf~I.~~{~. ~~~y~y#g'~.r~ii};~~~—• +/~t—m C~~F9~d,~~f~y~ ~Z~~~e ~~aYGG~~V~7~OG ~... q.. x —~—ltt i'E~~7G1~0~~~~11C R]LZ~~~~r~o ~t {:{~~1J1,=~$0{~, ~~~~~~~1. ~~11f~f~~'~~.~1f~i~)~~o ~7111.7`T i~l' {DIN/ EN2871~~~6~Z~~'c #if~~~~i~al.~S~EN3834-21:.~'~<~~~~f~~~=a, KD ~ z~l$~ ~xlrt~i~F ~t,Frt~l gal Q~ ~x~ x~~~ ~~o~ ~€~~ ~x~ A~ ~f~ AI Flo xl~~r Wz ~l~ls.. ~ixl~ ~~€~ ~I~xt~f xl°~°I 4~ t~~ ~f~ ~o~ 4rto~ T~ailok ~t~-IMF. 41x1 ~ ~'~ ~I ~►~~F ~F~~ ~~rt~ll ~z ^~~I4. ~ xil~~ HACH/ HACH LANGtE zFo~ ~{Ar~l ~co~ M~o x~l~~ ,x1lrxtl~p}~~~ ~'~rtc $~'-~~F AfOoI`~U4p. ~ ~ ~ ~' o rS~'. l~f$ A~ ~°ei ^f ~f T d~ -fir- µ~H ~-IY. TT Z~ t~~Ll ~i ~T ~F Or~c ~Li`'~ l~-ti A~dl~ T ~1altii ~x~~~ ~obilok ~~-14. xil~tif7f a~~► ~z{I~ Ta °t T~ oF RI2f Af$ ~fs°t1~-I ~t. z~l$ ~o~~ ~~►'~~Ig xlxl °#gU4. ol~i~f zl~al oi~~~~~ X211 z~l~~! $~sF 4 ~ sxig~ /,f$~ o'$ "~°tixfoll}II ~~~~► T?~ol ~oi~-F~i~-F ~'dI~F ~~~ T °,~..~a~-IMF. $zti °~~I ~~.8~f ~o~ollc ~FS~II DIN/EN 287 xf'~~ ~f~ o"~Ys~l~-} EN3834-2011 2to—~F ~f doll Lees vbor montage van het product alle montage-instructies grondig door en volg de instructies Gjdens de montage op. Montage dient to worden uitgevoerd door een ge- kwalificeerde persoon en in overeenstemming met alle plaatselijke veiligheidsvoorschriften. Kies een montagelocatie die een veilige montage en werking garandeert. Het product is uitsluitend bedoeld voor opnamelbevestiging van meetsensoreN-producten van HACHlHACH LANGE. Elk ander gebruik kan gevaren voor de gebruiker met zich meebrengen. Onderhoud en reparatie molten uitsluitend worden uitgevoerd door de geautoriseerde afdeling klantenservice. Er molten alleen originele, door de fabrikant aanbevolen reservedelen en accessoires worden gebruikt. Bij elks aanpassing van het product vervalt de aansprakelijkheid. Als u deze instructies niet opvolgt of als u het product voor een ander doel gebruikt dan waarvoor het is bedoeld, kan dit leiden tot ernstig letsel van de gebruiker eNof beschadiging van de apparatuuc Het benodigde laswerk malt uitsluitend uitgevoerd worden door DIN/EN287 gekwalificeerde lasers, of door EN38342 geceRificeerde installateurs. Przed zainstalowaniem/zamontowaniem produktu, uwainie przeczytac wszystkie instrukcje i postgpowac zgodnie z ich zaleceniami podczas instalacji. Instalacja powin na zostac wykonana przez specjalistg o odpowiednich kwalifikacjach, zgodnie ze wszystkimi obowiazujacymi lokatnie p2episami bezpieczeristwa. Wybrac takie miejsce instalacji, ktbre zapewni bezpieczeristwo podczas instalacji i uiytkowania. Produkt jest przeznaczony wylacznie do zamocowania/zawieszenia czujnikbw/miernik8w fumy HACHMACH LANGE. Jakiekolwiek inns zastosowanie niesie ze soba ryzyko dla uiytkownika. Konserwacje i naprawy powinny byc przeprowadzane wytacznie przez upowainiony personel dziatu servvisowego klienta. Wolno uiywac tylko oryginalnych czgsci zamiennych i czgsci wyposaienia zalecanych przez producenta. Jakiekohviek mod~kacje w budowie i dzialaniu produktu oznaczaja wygasnigcie C ~- . . Item 10 Page 13 of 23 ~_ gwarancji i wykluczaja wszelka odpowiedzialno§c producenta. Nieprzestrzeganie tych instrukcji lub uiywanie produktu do celdw innych nii wynika z opisu jego paeznaczenia, mole byc p2yczyna powainych wypadkdw z udzialem uzytkownika Ulub uszkodzenia sprzgtu. Wymagane race spawalnicze musz~ byc wykonane zgodnie z norms DIN / EN 287 przez wykfalifikowany ersonel lub przez fumy po§redniczace zgodnie z EN38342. PT Antes de instalar/montar o produto, leis atentamente as instru~oes de instala~ao e siga-as durante a instalatao. A instalagao deve ser efectuada por um professional qualificado em conformidade com todas as regulamentaFoes locals de seguran~a. Escolha cuidadosamente o local de instala~ao de modo a assegurar uma opera~ao e instala~ao com seguran~a. Este produto foe concebido apenas pars segurar/fixar sensores/produtos pars mediyoes da HACH/HACH LANGE. Qualquer outro tipo de utitiza~ao pode implicar riscos pars o utilizador. O trabalho de manuten~ao e reparayao deve ser efectuado units e exclusivamen- te peto departamento de assist@ncia ao cliente devidamente autorizado. Apenas podem ser utilizados acess6rios e peas de substitui~ao originals recomendados pelo fabricante. Qualquer altera~ao fella ao produto anula qualquer responsabilidade da nossa parte. O nao cumprimento das instru~oes ou a utiliza~ao do produto pars ouVos fins que nao aqueles pars que o produto foe concebido pode resultar em ferimentos graves e/ou Banos no equipamento. O trabatho de soldadura exigido dever~ ser executado exGusivamente por soldadores qualificados de acordo tom a norms DIN /EN 287, ou por empreiteiros em conformidade tom a norms EN 3834-2. RO Inainte de instalarea/montarea produsului, citiji cu atenjie Coate instruc~iunile de insta- lare ~i urmaSi instrucRiunile in timpul instal~rii. Instalarea trebuie realizata de un expert calificat in conformitate cu Coate reglementfirile locale pentru siguranja. AveSi grija sa alegeSi o loca(ie de instalare care s~ asigure instalarea ,si funciionarea in siguranRa. Produsul este destinat exGusiv pentru men~inerea/ata~area senzorilor/produselor de m~surare HACH/HACH LANGE. Utilizarea in alte scopuri poste implica riscuri pentru utilizator. ~ntrejinerea ~i lucrarile de repara- Yie trebuie realizate exclusiv de departamentul de service autorizat pentru clienti. Pot fi utilizate numai piesele de schimb ~i accesoriile originate recomandate de producfitor. Orice modificare adusa produsului va duce la anularea oric~rei r~spunderi. Nerespectarea acestor instrucSiuni sau utilizarea produsului in alte scopuri decal in cele destinate pot duce la accidente grave pentru utilizator ~Usau defectarea echipamentului. Lucrarile de sudur~ necesare trebuie s~ fie efectuate exclusiv de sudori calificaSi in conformitate cu DIN / EN 287 , sau de contractori in conformitate cu EN 38342. R ~ ~ICPB/~ yCTBHOBK041/MOHTBN(OM N3,Q8l1NA H006XO,gNMO BHNM8T8116H0 flPO4l1T8Tb NHCTPyKI~NN Il0 yCTBHOBK@ N CTPOfO CIl@J~082T6 NM BO BPOMA Bblf10l1H@HNA P860T. YCTBHOBKB J{OJ1NW8 66176 BbIf70l1H@!18 K8871N(~NL~NP088HHbIM Cfl@L{N8JINCTOM C C067110/~@HN@M {{eNCTBy1011~NX ~P8BNI1 f70 TBXHNKB 6630f18CHOCTN. BbIGNpBA M@CTO (j71A yCT9HOBKN, H006XO,gNMO ~/4NTbl8a'Tb TP@6088NNA I10 G230118CHOCTN f1PN MONTBMC@ N 3KCMy8T8l~NN N3,({CJ7NN. QBHHOe N3- ,Q@l1N2 f1P6aH83H84@HO TO176K0 {~f1A KP2t1lleHNA N3M8PNT2f1bHbIX A8T4NK08/f1PN60P08 KOMf18HNN HACH/HACH LANGE. llro6oe ppyroe npaMeHeHtie Mo~cer npegcTaBnATb onacHocrb qnA nonb- 3088T8J7A. P860T61 f10 P2MOHTY N T@X06CllyNM88Fi N10 /;OJ1M(Hbl BbIIlOf1HATbCA NCK11104NT@l16H0 Cf1Cl~{N8J1NCT8MN yf10J1HOM048HHON C@PBNCHOIA OPf8HN38L,NN. C N3/~@f1N@M MO()/T NCf10f163088Tb- CA TOlIbKO 38f148CTN N f1PNH2~lleNMOCTN, P@KOMOH~QyCMbI@ N3fOTOBNTQIIBM. I~10661@ N3M0H2HNA, BH@C8HH618 B KOHCTPyKI{NIO N3,Q@f1NA, f1PN8@/{YT K OTM@H6 ~'dPBNTNN f70CT88t1~NK8. H8C06J110- f{OHNe TPe60B8HN41 NHCTPyKI~NN Nl7N NCf1071630B8HN0 N3/(@l1NA HE I10 M83H84BHNI0 MOf)/T CT8T6 ~PN4NHON C@Pb@3HbIX TpBBM allA J110,Q@N N/N11N f10BP@k(/~@FiNA OEOPy~Q002HNA. H2OE)XOANM618 CB8PO4H61@ P860T61 (~O17NCH61 ~POBO/~NTbCA TO116K0 C68PLL{NKBMN, K88J1Nf~Nl.~NP088HHbIMN B C00T- eercTeHH cDIN / EN 287, NI1N f10R PA{~4NK8MN B COOTB@CTBNN C DIN 3H34-Z. Pred instalaciou/upevnenim produktu si pozome precitajte vsetky pokyny k instalacii a poEas in§talacie ich dodrzujte. Instalaciu muse vykonal' kvalifikovany expert v sulade so vsetkymi miestnymi bezpe~nostnymi nariadeniami. Uistite sa, fie si vyberiete miesto instalacie, ktore zaruci bezpecnu in§talaciu a prevadzku. Produkt je urcenjr vjrlucne pre uchytenie/upevne- nie meracich snimacov/produktov HACH/HACH LANGE. Ak~ko~vek ink pouiitie moze zahPr~aY rizika pre pouiivatefa. Udribu a opravy by malo vykonavaP vylucne autorizovan~ oddelenie sluiieb pre zakaznikov. Moiu sa pouiit' len origin~lne n~hradne diely a prislu~enstvo, ktore odponica vjrrobca. Akeko~vek zmeny vykonane na produkte sposobia neplatnost' vsetkej zodpa vednosti. Nedodrzanie tychto pokynov alebo pouzivanie produktu na injr Wei ur~eny ucel mbze sposobit' vaine zranenie pouiivatefa alebo po~kodenie zariadenia. Pozadovane zvaracske prate muses byf vykonan~ vyhradene v sulade s DIN/EN 287 kvalifikovanymi zvara~mi, alebo dodavatefmi v sulade s EN 3834-2. S t Pred namesGtvijo/postavitvijo izdelka natanEno preberite vsa navodila za namestitev in ~-~ jih med name~~anjem upo§tevajte. Namestitev mora izvesti usposobljen strokovnjak v skiadu z vsemi lokalnimi vamostnimi predpisi. Za namestitev izberite mesto, ki zagotavlja varno namestitev in uporabo. Izdelek je namenjen izkljuEno za namestitev/pritrditev merilnih senzory'ev/ izdelkov HACHIHACH LANGE. Vsakrsna drugacna uporaba lahko predstavija nevarnost za uporabnika. Vzdrievanje in popravilo lahko izvaja izkljucno osebje poobla§cenega servisnega oddelka. Uporabljate lahko samo originalne nadomesfie dele in dodatno opremo, ki jih priporoca proizvajatec. Spremembe izdelka razveljavijo vsakrsno odgovornost. ~e teh navodil ne uposte- vate ale izdelek uporabljate v neprimeren namen, lahko pride do hudih poskodb uporabnika in/ ale po~kodovanja opreme. Zahtevana dela varenja lahko izvajajo izkljuEno usposobljeni varilci v skladu z DIN/EN 287 ale izvajalci v skladu z EN 38342. S ~ Pre instalacije/montane ureHaja pailjivo procitajte sva uputstva za montazu i pratite ih tokom postupka montaie. Instalaciju mora provesti kvalifikovani strucnjak u skladu sa lokalnim propisima o bezbednosti. Brizljivo odaberite mesto instalacije na kom ce se montaia uredaja i koriscenje odvijali u bezbednim uslovima. Uredaj je namenjen iskljuEivo za drianje/pri~vrscivanje HACH/HACH LANGE mernih senzora/uredaja. Upotreba ure8aja u druge svrhe mote da predstavlja rizik po korisnika. Odriavanje i opravke sme da provodi isklju~ivo ovlasceni serviser. Kod zamene i opravaka smeju da se koriste samo originalni rezervni i dodatni delovi koje je preporu~io proizvoQac. Belo kakve izmene izvrsene na uredaju ponis'tice njegovu pouzdanost. Nepridriavanje uputstava ill upoVeba ureHaja u svrhe za koje nije namenjen mogu doves6 do ozbiljnih povreda Ijudi koji ga koriste ifili stele na opremi. Neophodni radovi zavarivanja treba da budu izvr~eni od strane zavarivaca u skladu sa DIN / EN 287 ill od ugovorenog izvoQaca radova u skladu sa EN 38342. S\ / Las alla installationsanvisningar noggrant finnan du installerar/monterar produkten och ~~ folj anvisningarna under installationen. Installationen maste utforas av en kvalifice- rad expert i enlighet med alla lokala sakerhetsforeskrifter. Se till att valja en installationsplats som garanterar Baker installation och drik. Produkten ar endast amnad for att halla/fasta matsensorer/-produkter fran HACH/HACH LANGE. Annan anvandning kan medfora risker for anvandaren. Underhalls- och reparationsarbeten ska uteslutande utforas av den auktoriserade kundserviceavdelningen. Endast originalreservdelar och -tillbehor som rekommenderas av bllverkaren ska anvandas. Om Wagon andring goys pa produkten upphays til~verkarens ansvar. Oet kan Bet medfora allvarliga skador for anvandaren eller skador pa utrustningen om du inte foljer anvisningarna eller om du anvander produkten i installationer den inte ar aysedd for. Svetsarbeten skall uteslutande utforas av svetsare kvalificerade enligt DIN/EN 287, eller av entreprenor enligt EN38342. T R Urunun montajirn yapmadan once, Cum montaj talimaUanrn dikkatlice okuyun ve kuru- lum sirasinda talimatlan mutlaka takip edin. Montaj, kalifiye bir unman tarafindan Cum yerel guvenlik duzenlemelerine uygun ¢ekilde yapdmalidu. Urunu, montaj ve kullarnmin guvenli olacagi bir yere monte edin. Uriin sadece HACH/HACH LANGE ol~um sensorlerinU urunlerini, tutmak/takmak i~in tasarlanmi~Gc Barka ama~larla kullarnlmasi, kullanici iFin tehlikeler dogurabi- lir. Bakim ve onanm sadece yetkili mu~teri hizmetleridepartman~ tarahndan gerFekle~tirilmelidir. Sadece uretici taraflndan onerilen orijinal yedek parya ve aksesuarlar kullamlmalidu. Urune yapdan her turlu degi;iklik, tum sorumlulugu ortadan kaldinr. Bu talimatlara uyulmamasi veya uriinun uretim amaandan ba~ka bir ama~la kullarnlmasi sonucunda kullarna ciddi ~ekilde yara- lanabilir ve/veya urun zarar gbrebilir. Gerekli kaynak isi yalmzca katifiye kaynakyilar tarafindan DIN / EN 287'ye gore yapdmalidir, veya muteahhitler taraf~ndan EN 38342'ye gore yapdmalidir. ZH ~,{,~~€,µ~~1°` 4~~~+7 , i~f~~ryPA.i~y~7~,r/~~~~~~M~ }. ~~/~~'~€~yy~~i~y~~,~~ii~/BQA< ~yy~ P7G~ol~~7G~X~ ~ ~~`l ~ilio7/11~~~l6~e TT~~S~~~NS~ ~ ~T~F~~+ii ~$tl~~, ~~aaR~~~~.`~/r'~#~ HACH/HACH LANGE 11~~~i~~l~ane ~~'~ftb~i~ 7~ekd R~~4~1y~s~Ah 3p~(~Y~eF.6&oa.~ ~-,k~$'$il4s~t=r f~~~~~~#gR~6g4~1~~C~E~`a~p$f~7F ic~e R~r$.~~~~t~~c m~`~~fc~ ~m17~~7tef~G7 HY 7Te J~7 ^F`~GR T~1T fr 7'7~4~. ~I~Hc~T ~nI~~R~7c ~f Io '~~`J~~VG~ . ~'6 ~~~ o~~~ G~k~ . ~~e~~~/'~~~1~~~{J~~I/97Gijc`~~i ~e P7fr~~~'~2~~'I~1J ~~~ DIN/EN 287 . ~ q~k~~~=A~~~3Ai7 . 7c~#~~EN 3834-2~~`~J.#~1i7e .~ ~ j ~ ~. ~~ ~ ~~~ '~ • pmaX ' 6 ~` 105 Pa (6 bar, 87 psi) ~ WWW. . . Item 10 Page 14 of 23 SOLITAX LZY441 M16x45mm ~ ~ ' LZY462 DOC273. ~ 99. ` . LZV678 inline sc A4 ISO4017 03911 SOLITAX highline 1x 1x ~ 4x ~~~ 1x ~ 1x ~ 1x LZX337 sc DOC273. SS 316Ti/ = DN65 99. = DN65 1.4571 03911 ~X ~ ~X ~ ~X DN65/PN16 EN 1092 LZX660 DOC273. ~~~~ C-steel / = DN65 99. DN65 ~, 1.0037 03911 ~/~ DN65/PN16 1x 0 1x ~ ~X LZX66 EN 1092 TSS M16x45mm D~ 273. inline sc ~ LZY441 A4 ISO4017 ~ ' LZY462 ~ 99. ~ . LZV678 03911 LZY630.00.12000 1x ~ 4x ~~ 1x ~ ~ 1x TSS inline sc LZY630.00.10000 LZ 1 Mss• mm , , LZY462 SO4017 1 x ~ 1 x ~ ~ ~ 1 x . LZY630.00.12000 DOC27' . SS 316Ti/ = DN65 9. 65 1.4571 911 ,~X ~ ~X ~ ~X DN65/PN16 LZX660 EN 1092 TSS inline sc LZY630.00.11000 ~~~ 1 x LZY63~.00.12000 C-steel / DN65 ~ 1.0037 I J DN65/PN16 ~ EN 1092 LZX661 ~X LZY441 M16x45mm , , LZY462 A4 ISO4017 1 x ~ 4x ~s~ ~ 1 x DOC273. 99. - DN65 03911 ~X a ~X ~ DOC273. 99. ~ . LZV678 03911 1x ~ 1x ~5 , .. A6 _. ~~~ ~~~ 4 . . Item 10 Page 15 of 23 ~P si e~ 4~ . . Item 10 Page 16 of 23 o° C . . Item 10 Page 17 of 23 C vu ~~o . . Item 10 Page 18 of 23 ~: . . Item 10 Page 19 of 23 12 A6 A6 ~C~ A2 A2 13 ~~~ . . Item 10 Page 20 of 23 E[~ A2 18 A2 A2 A2 17 19 . . Item 10 Page 21 of 23 O 11 . . Item 10 Page 22 of 23 L . . Item 10 Page 23 of 23 City Council Agenda Report Meeting Date:February 20, 2024 From:Jessica Alcaraz, Financial Services Administrator Department:Finance Submitted by:Angela Melgar, Finance Manager Subject Fiscal Year 2022-23 Audited Financial Reports Recommendation A. Receive and file the Fiscal Year 2022-23 Annual Financial Statements; and B. Extend submittal of the Fiscal Year 2023-24 Final Audit and Report to Council to January 21, 2025. Background Audits are to be performed in accordance with the standards set forth for the financial audits by the Governmental Accounting Standards Board (GASB), in the General Accounting Office (GOA). In addition, City Charter Article VIII, Chapter 8.11 requires City Council to appoint a California certified public accounting firm to provide an independent, annual audit of all City accounts, including the accounts of all departments, officers and employees who receive, handle or disburse public funds. The Charter also requires the final audit to be submitted to Council 120 days after the end of the fiscal year but allows Council to extend this deadline. Accordingly, on January 16, 2024 the City Council extended the deadline for submittal of the Fiscal Year (FY) 2022-23 Final Audit and Report to Council to February 20, 2024. The FY 2022-23 audit was completed by the City’s independent auditors, The Pun Group LLP, Certified Public Accountants and Business Advisors, which issued an unmodified opinion, otherwise known as a ”clean opinion” finding nothing of material concern in the City’s internal controls, financial and bookkeeping practices. The independent auditor’s unmodified report provides assurance that the financial statements, and the audited information within, present the City’s financial position fairly to City Council, residents, current and future businesses, grant entities, creditors, bond investors, rating agencies and other interested parties for the fiscal year ending June 30, 2023. Representatives from The Pun Group LLP will provide a presentation on the results of the FY 2022-23 audit. As noted above, Charter Chapter 8.11 requires the final audit to be submitted to Council within 120 days after the end of the fiscal year. With the City’s fiscal year ending on June 30, FY 2023- 24 audited financial statements would need to be submitted to Council by late October 2024. However, 120 days after the end of the fiscal year (June 30) is not feasible as it can take several months to receive all documents from outside contractors and vendors to accrue all expenditures related to the prior year, finalize journal entries, reconciliations and for the auditors to complete their audit and produce the final audited financial reports. Additionally, industry best practice is 18 months after a budget is adopted, which places finalization of the audited financial reports by end of the calendar year and presentation to Council soon after. As such, staff is seeking an extension for submission of the final audit and report to Council for FY 2023-24 Annual Financial Statements to January 21, 2025. Pursuant to Charter Chapter 8.11, the City Council may extend the deadline for submission of audited financial statements beyond 120 days after the end of the fiscal year. . . Item 11 Page 1 of 2 Fiscal Impact There is no fiscal impact associated with this report. Attachments 1. FY 2022-23 Audited City-wide Financial Statements 2. FY 2022-23 Audited VPU Financial Statements 3. FY 2022-23 Audited Electric Financial Statements 4. FY 2022-23 Audited Water Financial Statements . . Item 11 Page 2 of 2 City of Vernon Vernon, California Independent Auditors’ Reports and Basic Financial Statements For the Year Ended June 30, 2023 . . Item 11 Page 1 of 126 . . Item 11 Page 2 of 126 City of Vernon Basic Financial Statements For the Year Ended June 30, 2023 Table of Contents Page INTRODUCTORY SECTION (UNAUDITED): Letter of Transmittal ............................................................................................................................................ i FINANCIAL SECTION: Independent Auditor’s Report on the Audit of the Financial Statements ........................................................... 1 Management’s Discussion and Analysis (Required Supplementary Information) (Unaudited) ....................... 5 Basic Financial Statements: Government-Wide Financial Statements: Statement of Net Position ............................................................................................................................ 20 Statement of Activities ................................................................................................................................ 22 Fund Financial Statements: Governmental Fund Financial Statements: Balance Sheet ........................................................................................................................................ 29 Reconciliation of the Governmental Fund Balance Sheet to the Government-Wide Statement of Net Position ...................................................................... 30 Statement of Revenues, Expenditures, and Changes in Fund Balance ................................................. 31 Reconciliation of the Governmental Fund Statement of Revenues, Expenditures, and Changes in Fund Balance to the Government-Wide Statement of Activities ................................................................................................................... 32 Proprietary Fund Financial Statements: Statement of Net Position ..................................................................................................................... 34 Statement of Revenues, Expenses, and Changes in Net Position ......................................................... 37 Statement of Cash Flows ....................................................................................................................... 38 Fiduciary Fund Financial Statements: Statement of Fiduciary Net Position ..................................................................................................... 43 Statement of Changes in Fiduciary Net Position .................................................................................. 44 Notes to the Basic Financial Statements ............................................................................................................ 49 . . Item 11 Page 3 of 126 City of Vernon Basic Financial Statements For the Year Ended June 30, 2023 Table of Contents (Continued) Page Required Supplementary Information: Budgetary Comparison Schedules: General Fund ............................................................................................................................................... 95 Notes to the Budgetary Comparison Schedules ........................................................................................... 97 Schedule of Change of Net Pension Liability and Related Ratios ..................................................................... 98 Schedule of the City’s Proportionate Share of the Net Pension Liability and Related Ratios ............................................................................................................................................ 100 Schedule of the City's Proportionate Share of the Net Pension Liability and Related Ratios ......................... 103 Schedule of the City’s Contributions – Pensions ............................................................................................. 104 Schedule of Changes of Net Other Postemployment Benefits Liability and Related Ratios ........................... 108 Schedule of Contributions - Other Postemployment Benefits ......................................................................... 110 Report on Internal Control over Financial Reporting and on Compliance and other Matters based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards .................................................................................. 113 . . Item 11 Page 4 of 126 4305 Santa Fe Avenue, Vernon, CA, 90058 CityofVernon.org Honorable Mayor and Members of the City Council City of Vernon, California In accordance with the Charter of the City of Vernon (City) and State Law, we are pleased to present the Annual Comprehensive Financial Report (ACFR) for the fiscal year ended June 30, 2023. The purpose of this report is to provide the City Council, residents, general public, and interested parties with a broad financial outlook of the City, as measured by the financial activity and operational achievements of its various funds. Responsibility for both the accuracy of the data and the completeness, and fairness of the presentation, including disclosures, rests with the City’s management. To the best of our knowledge and belief, the enclosed data is accurate in all material respects and is reported in a manner that fairly represents the financial position and operation results. In addition, to the best of our knowledge, there are no untrue statements or omissions of material fact within the financial statements. All disclosures necessary to enable the reader to gain a maximum understanding of the City’s financial activities have been included. The City is required to issue annually a report on its financial position and activity, and that an independent firm of certified public accountants audit the report. As such, the ACFR is prepared in accordance with generally accepted accounting principles (GAAP) and using the guidelines set forth by the Government Accounting Standards Board (GASB). This year’s audit was completed by The Pun Group LLP, Certified Public Accountants and Business Advisors and an unmodified (“clean”) opinion on the City’s financial statements for the fiscal year ended June 30, 2023 was issued. The independent auditor’s report is found at the front section of the financial section of the ACFR. Management’s Discussion and Analysis (MD&A) immediately follows the independent auditor’s report and provides a narrative overview and analysis of the basic financial statements. This letter is designed to complement the MD&A and should be read in conjunction with this transmittal letter. City of Vernon Profile The City of Vernon is one of the few full-service cities in California with much to offer. Since it was founded in 1905, Vernon has maintained a business-friendly environment, thus allowing the City to remain one of Southern California’s prime location for industry of all types. Within its 5.2 square mile boundary, Vernon houses more than 1,800 businesses that employ approximately 55,000 people from nearby communities throughout the Greater Los Angeles Area. These include food and agriculture, apparel, steel, plastics, logistics, home furnishing companies and soon to add a new data center serving as a vital economic engine in the region. Vernon is a charter city and operates under the Council-Manager form of government. The five-member City Council is elected at-large to serve 5-year terms. The Mayor and Mayor Pro Tem position is rotated annually among Council Member in order of election. The City Council . . Item 11 Page 5 of 126 Page 2 of 7 is the legislative authority of the City and sets the policies under which the City operates. The City Council provides leadership through policy development regarding the current practices and future direction of the City. The City Council appoints the City Administrator and the City Attorney, as well as members of the City’s commissions. The City Administrator is responsible for overseeing City employees who implement all of the City's programs, services, and projects. Vernon is a prime location for businesses as it’s located just south of downtown Los Angeles, close to LAX, the Ports of Los Angeles and Long Beach and in close proximity to access major transportation hubs. The City provides a one-stop-shop for land use services with expedient in- house plan reviews and permitting, integrated fire inspections and health department approvals, and an unmatched suite of quality utility services to fulfill all business needs. Additionally, the City continues to make strides in developing its community relationships. With seasonal community outreach events, it is connecting with Vernon residents and those residents in neighboring communities in the southeast region. The City has begun circulating a Resident Newsletter and is also active on its social media platforms, focusing on dissemination of information that is relevant to the community, ensuring that its population is well-informed on City matters. By forging these connections with community members, the City is confident that the bi-directional conversations that result will allow it to better serve the needs of its constituents. Local Economy While the California economy has effectively recovered from the pandemic recession of 2020 in most business sectors, however, there are still signs of stress in the overall economic outlook. Global economies continue to grapple with high inflation, rising interest rates putting pressure on the housing market, car sales and other parts of the economy, the risk of new COVID variants, and the war in Ukraine continue to have a global economic effect. A mix of economic forecasts believe that the longer inflation persists and the higher the Federal Reserve increases interest rates in response, the greater the risk to the overall economy. Inflation continues to be one of the most challenging obstacles global economies have attempted to overcome. The Fed has taken an aggressive stance in combating inflation by raising the federal funds target rate from 0.25% in March 2022 to 5.5% in October 2023, its highest level in 22 years. The inflation rate met a 40-year high of 9.1% in 2022 but has tapered off to 3.7% in September 2023 and is still higher in comparison to the Federal Reserve’s target of 2% inflation rate for the US economy. Furthermore, these actions have also impacted the housing market, which experienced a continued high growth rate (10%) through early 2022 tapering off as mortgage interest rates increase reaching 7.79% in October 2023, a two-decade high. With the number of home sales declining and the median home price increasing, many economists are mixed about the housing market outlook and continue to watch this closely. Even despite these headwinds, the US GDP rose to a robust 4.9% annualized pace for the third quarter ending September 30, 2023, buoyed by low unemployment and solid consumer spending, however, this report could give the Federal Reserve some impetus to keep interest rates high which may begin to negatively impact consumer and business spending habits bringing the economy to a precipice slowdown. UCLA Anderson Forecast foresees a weak US Economy in 2024, followed by a return to trend growth rates, albeit below trend GDP levels, in 2025. . . Item 11 Page 6 of 126 Page 3 of 7 California’s economy remains stable despite the pressure from more than two years of higher than usual inflation and the jump in interest rates. Between January 2020 (just before COVID) and June 2023 prices increased by approximately 17% with food, beverages and energy and gasoline prices rising well above this. California’s severe housing shortage coupled with high interest rates are driving home prices higher as well. As of September 2023, the State’s unemployment rate is currently 4.7%, the second highest of any state. Job growth within California also appears to be slowing, partly due to the State’s labor shortage, negative population growth, and high housing costs. If these conditions continue to persist, this may further impede the State’s long-term economic growth by causing consumers to make tradeoffs in household spending budgets. Also, the State of California continues to grapple with State budget deficits leaving uncertainty how the State Legislature plans to balance its budget and the possible impacts to local municipalities. Although there are many variables driving the local economy, most economic forecasts are predicting limited growth in the following years ahead mainly due to inflation and higher interest rates. The relative health of the City’s finances can be attributed to five (5) successive fiscal years of focused attention on improving the alignment of ongoing expenditures with ongoing revenues. While the City has enjoyed positive financial health in the recent past, it is essential to implement all available measures to safeguard against potential economic downturns that could impinge upon the City’s primary revenue sources: sales, parcel, and utility users tax. Given the ongoing national economic challenges, including continuing inflation, constrained supply in the goods, services, and labor markets, more stringent Federal monetary policies, and market volatility, the City must proactively enhance revenues and improve operational efficiency to prevent impact from future slowdowns in the economy. The City’s annual obligated costs, such as contract costs, insurance, pension obligations, and unfunded mandates, continue to rise over time and compete against other budget priorities. The largest obligated costs include pensions costs related to the CalPERS Unfunded Accrued Liability (UAL). The UAL mainly fluctuates as a result of investment returns and changes in the discount rate. CalPERS recently announced a gain of 5.8% for FY 2022-23, which is balanced by the prior year’s loss of 7%. When factoring in CalPERS’ discount rate of 6.8% and the 2022-23 preliminary return of 5.8%, the estimated funded status now stands at 72%. The recent gain and loss, change in the discount rate, and assumption changes have led to variable funding status, which directly impact the City’s pension costs and overall budget strategies; the City will continue to monitor this issue closely. The City has also embarked on several key studies that may affect future budgetary planning. In August 2023, the City Council approved VPU’s long-term rate strategy, which included reasonable electric growth estimates, reinforced our commitment to competitive base rates, a stable Energy Cost Adjustment Billing Factor, and the development of a comprehensive Financial Reserves Policy that supports financial stability, ensuring that we can navigate future challenges and make necessary investments while continuing to provide reliable and affordable services. The City is currently conducting a comprehensive fee study to review the City’s overall user and regulatory fee structure, basis of fees, and cost recovery. The study is expected to be completed by early 2024 in time for the next annual budget cycle and any approved changes will be incorporated in the next budget. . . Item 11 Page 7 of 126 Page 4 of 7 FY 2023-24 Operating Budget The budget reflects tempered optimism, the current global and local economies continue to face new and ongoing challenges that lead us to reevaluate spending strategies, The City’s future economic health will be dependent on growing and maintaining healthy reserves through fiscally conservative budgets and polices, planning for economic opportunities, and maintaining its strong financial position through prudent, long-range policy decisions and sound fiscal management. The City will continue to monitor key economic indicators, sources of revenue, and spending levels as part of its sound, conservative fiscal approach. The City will continue to build on the successes and achievements realized in the current year and remains committed to serving its customers. The City’s main revenue sources consisting of sales and use taxes, parcel taxes and utility users taxes have all sustained steady growth this year despite the current financial woes. As the City moves into fiscal year (FY) 2023-24, we are optimistic about continued growth but applied conservative budgeting principles during the budget development process based on analysis of historical performance and trends, as well as industry, economist, and new reports. The City will continue to monitor key economic indicators, sources of revenue, and spending levels as part of its sound, conservative fiscal approach. Long Term Financial Planning Under the direction of the Mayor and City Council, City management identifies the priorities that shape the path leading into the City’s future. City initiatives are reevaluated regularly, and new goals are frequently vetted to ensure that City efforts are consistent with the priorities of our policy body and the community. The City strives each year to better fulfill its mission of delivering outstanding municipal services that are responsive, comprehensive, and beneficial to the entire community by continuing its tradition of fostering innovation, ingenuity, and opportunity within its operations. City staff remains focused on actions that achieve the primary goals of tending to the public’s needs, building neighborhood connections, and governing for results that strengthen our community. The City’s dedication to improvement and modernization has created an environment where City of Vernon residents and businesses are dialed in and able to collaborate with staff, voice their concerns, and have access to a plethora of information on the City and their chosen topic(s) of interest. As these relationships flourish, businesses, and residents alike are able to enjoy all that Vernon has to offer while also participating in guiding Vernon down its path into the future. 1.Vernon is very committed to meeting its debt service coverages. In order to address the budget deficit historically present in the General Fund, the City placed on the ballot a measure to increase the Utility Users Tax from 1% to 6% which passed in April 2019. The passage of this measure will effectively eliminate operating transfers from its enterprise activities to the General Fund. To minimize the burden on the business community, an equivalent discount has been provided to Vernon’s electric, gas, water, and fiber optics utility customers. . . Item 11 Page 8 of 126 Page 5 of 7 2.Vernon has the capacity to expand its services as new businesses emerge and as existing businesses flourish and expand. An attractive, business friendly approach is extended to customers in the form of discounts that are available for large electricity consumers. Revenue sharing mechanisms have also been implemented to help stimulate both growth and retention. The City’s Good Governance and Reform initiatives provide a tangible demonstration of the overarching commitment to sound governance and best business practices. 3.Based upon the City’s electric debt service schedule, there will be a significant reduction in debt service starting in FY 2028-29. With input from business and residential communities, the City continues to evaluate its position and initiatives to ensure that electric rates remain competitive and that infrastructure needs are being addressed. 4.The inherent governance challenges in the City, due to a very small residential population, continues to be addressed by its residents, businesses, Chamber of Commerce, and City Council. Over the past 5 years, the public has become much more engaged in the political process and continues to keep a watchful eye on all important issues facing the City. The disincorporation controversy raised by assembly bill 46 in 2011 has been addressed with the whole-hearted adoption of key reforms and comprehensive implementation of best practices in all City operations. 5.The State of California Joint Legislative Audit Committee (JLAC) is no longer pursuing the disincorporation of the City. Vernon has addressed all outstanding JLAC recommendations effective July 2018. Emphatically committed to good governance and transparency, the City is proud of its success in satisfying each reform that JLAC recommended. As a result, the City moves forward with clear, concise, and comprehensive policies and procedures that uphold best practices. 6.The shutdown of the Exide recycled battery plant operation has been and will continue to be under State of California oversight. The Department of Toxic Substances Control is completely responsible for monitoring the site and all related cleanup on a continual basis. The State of California has established funding for the Exide plant cleanup effort collected through a fee on each battery recycled along with any restitution from Exide which remains a global company. There is no direct impact on City operations and Exide does not pose a concern to existing Vernon businesses. 7.Vernon’s electric rates remain competitive, and in many cases, lower than adjacent municipal and investor-owned utilities. However, in many respects, Vernon’s electric utility services continue to outperform its neighboring peers thanks to a higher reliability rating and greater customer satisfaction. In fact, VPU is a three-time recipient of the RP3 Diamond Level Award, the highest reliability award from APPA, which reflects our continued investment in utility infrastructure and commitment to safety and workforce development. 8.Since the purchase of Malburg Generating Station (MGS), Vernon Public Utilities optimizes the operating profile for operational savings and continued coordination with the CAISO to prevent statewide rolling blackouts and requests to run MGS when energy is needed most across the electric grid.. . Item 11 Page 9 of 126 Page 6 of 7 9. Over the last several years, the City has pursued a clean commerce growth strategy. In June 2024, a new data center is scheduled to commence commercial operations in Vernon, bringing high-demand energy needs, reducing traffic congestion and vehicle emissions, and replacing legacy customers who have relocated their operations. At full capacity, the data center demand is estimated to be 33 MW of continually connected load in Fiscal Year 2025-26. Our pre-planned commitment to provide capital improvement investments of critical infrastructure in our transmission and distribution networks has been key to meeting the operational needs of this new industry in Vernon. VPU and the City have the unique ability to get these new development projects to market in the shortest time possible. Financial and Internal Controls Management of the City is responsible for establishing and maintaining internal control designed to ensure that the assets of the government are protected from loss, theft, or misuse, and to ensure that adequate accounting data are compiled to allow for the preparation of financial statements in conformity with U.S. generally accepted accounting principles. Internal control is designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that: (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the valuation of costs and benefits requires estimates and judgments by management. This report consists of management’s representations concerning the finances of the City. As a result, management assumes full responsibility for the completeness and reliability of all the information presented in this report. Management asserts that, to the best of their knowledge and belief, this financial report is complete and reliable in all material respects. Single Audit The City is legally required to undergo an annual single audit in conformity with the provisions of the Single Audit Act of 1984 and the U.S. Office of Management and Budget Uniform Guidance, Audits of State and Local Governments, if total federal grant expenditures exceed $750,000 in a single year. Throughout the course of FY 2022-23, the City did not expend federal funds in excess of the $750,000 threshold, and therefore the City is not subject to Single Audit requirements. Budgetary Controls The City maintains budgetary controls, the objective of which is to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the City Council. Activities of all governmental funds and proprietary funds are included in the annual appropriated budget. The level of budgetary control (that is, the level at which expenditures cannot legally exceed the appropriated amount) is established at the departmental level. . . Item 11 Page 10 of 126 Page 7 of 7 Spending Limitation Management foresees no problem for several years in complying with the spending limitation under the Gann Initiative passed by the California voters in 1979, which created Article XIIIB of the State Constitution. The City's independent auditors have attested to the accuracy of the computation of the spending limitations for the current period, which indicated that the City’s tax proceeds are substantially under the established Gann Limit and are not expected to reach that limit in the foreseeable future. Independent Audit The City requires an annual audit by independent certified public accountants, the auditing firm The Pun Group LLC, was selected to audit the City’s accounting records. The auditor’s report on the basic financial statements, combined and individual fund statements, and schedules is included in the financial section of this report. Acknowledgements The preparation of this report on a timely basis is a team effort involving many dedicated people across the entire organization. I would like to extend a special thanks to the talented finance professionals throughout the City, led by Jessica Alcaraz, Financial Services Administrator, Joaquin Leon Deputy City Treasurer, and Angela Melgar, Finance Manager. Appreciation is also expressed for Zaynah Moussa, City Attorney; Todd Dusenberry, General Manager of Public Utilities; Dan Wall, Director of Public Works; Robert Sousa, Chief of Police; Freddy Agyin, Director of Health and Environmental Control; Michael Earl, Human Resources Director; and Lisa Pope, City Clerk. In closing, without the leadership and support of the City Council, the preparation and results presented within this report would not have been conceivable. Their steadfast leadership has made possible the implementation of the City’s important, innovative concepts in fiscal management discussed herein. Respectfully submitted, Carlos Fandino City Administrator . . Item 11 Page 11 of 126 This page intentionally left blank. . . Item 11 Page 12 of 126 200 E. Sandpointe Avenue, Suite 600 Santa Ana, California 92707 INDEPENDENT AUDITORS’ REPORT To the Honorable Mayor and Members of the City Council of the City of Vernon Vernon, California Report on the Audit of the Financial Statements Opinions We have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the City of Vernon, California (the “City”), as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents. In our opinion, the accompanying financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2023, and the respective changes in financial position, and where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America (“GAAS”), and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States (“Government Auditing Standards”). Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant requirements relating to out audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Responsibility of Management for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. . . Item 11 Page 13 of 126 To the Honorable Mayor and Members of the City Council of the City of Vernon Vernon, California Page 2 2 Auditors’ Responsibility for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with GAAS and Government Auditing Standards, we:  exercise professional judgment and maintain professional skepticism throughout the audit.  identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.  obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed.  evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.  conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit. Required Supplementary Information Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis, the Budgetary Comparison Schedule, the Schedule of Changes in Net Pension Liabilities and Related Ratios – Miscellaneous Plan and Safety Plan, the Schedule of Proportionate Share of the Net Pension Liabilities and Related Ratios – Safety Plan, the Schedule of Contributions – Pensions, the Schedules of Changes in Net Other Postemployment Benefits Liability and Related Ratios, and the Schedules of Contributions – Other Postemployment Benefits be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by Government Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the Required Supplementary Information in accordance with GAAS, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. . . Item 11 Page 14 of 126 To the Honorable Mayor and Members of the City Council of the City of Vernon Vernon, California Page 3 3 Other Information Management is responsible for the other information included in the annual report. The other information comprises the Introductory and Statistical Sections but does not include the basic financial statements and our auditors' report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated February 8, 2024 on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance. Santa Ana, California February 8, 2024 . . Item 11 Page 15 of 126 4 This page intentionally left blank. . . Item 11 Page 16 of 126 City of Vernon, California Management’s Discussion and Analysis (Unaudited) June 30, 2023 5 As management of the City of Vernon (“the City”), we offer readers of the financial statements this narrative overview and analysis of the financial activities of the City for the fiscal year ended June 30, 2023. OVERVIEW OF THE FINANCIAL STATEMENTS This discussion and analysis are intended to serve as an introduction to the City's basic financial statements. The City's basic financial statements comprise three components: (i) government-wide financial statements, (ii) fund financial statements, and (iii) notes to the basic financial statements. Government-wide Financial Statements The government-wide financial statements are designed to provide readers with a broad overview of the City's finances, in a manner similar to a private-sector business. The statement of net position presents information on all of the City's total assets and deferred outflows of resources and total liabilities and deferred inflows of resources, with the difference between the two reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. The statement of activities presents information showing how the City's net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave). Both of the government-wide financial statements distinguish functions of the City that are principally supported by taxes (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City include general government, public safety, public works, and health services. The business-type activities of the City is administered by the Vernon Public Utilities which consists of the Electric, Gas, Water, and Fiber Optics utilities. The government-wide financial statements include not only the City of Vernon (known as the primary government), but also blended component units. Certain blended component units, although legally separate entities are, in substance, part of the primary government’s operations and are included as part of the primary government. Fiduciary funds are not presented in the government-wide financial statements as the resources are not available to support City programs. The government-wide financial statements can be found on pages 20-23 of this report. Fund Financial Statements A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. . . Item 11 Page 17 of 126 City of Vernon, California Management’s Discussion and Analysis (Unaudited) (Continued) 6 Governmental funds Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government's near-term financing decisions. Both the governmental funds balance sheet and the governmental funds statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The City adopts an annual appropriated budget for its General Fund. A budgetary comparison schedule has been provided for the General Fund (see page 93). The basic governmental funds financial statements can be found on pages 29 and 32 of this report. Proprietary funds The City’s proprietary funds consist of enterprise funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City uses enterprise funds to account for its Vernon Public Utilities which consists of the Electric, Gas, Water, and Fiber Optics utilities. Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the Vernon Public Utilities. The basic proprietary funds financial statements can be found on pages 34-39 of this report. Fiduciary funds Fiduciary funds are used to account for resources held for the benefit of parties outside of the government. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support City programs. The accounting used for fiduciary funds is much like that used for proprietary funds. The basic fiduciary funds financial statements can be found on pages 43 and 44 of this report. Notes to the basic financial statements The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found on pages 49-91 of this report. . . Item 11 Page 18 of 126 City of Vernon, California Management’s Discussion and Analysis (Unaudited) (Continued) 7 GOVERNMENT-WIDE FINANCIAL ANALYSIS City’s Net Position The table below summarizes the government-wide Statement of Net Position as of June 30, 2022 and June 30, 2023, and is as follows: City of Vernon Net Position June 30, 2023 and 2022 Overtime, net position may serve as a useful indicator of a city's financial position. At June 30, 2023, the City’s net position was $337.8 million, an increase of $81.0 million over the net position of $256.7 million at June 30, 2022. The largest portion of the City's net position ($353.4 million) is its investment in capital assets (e.g., land, buildings, infrastructure, and equipment, right-to-use assets, etc.), net of related debt. The City uses capital assets to provide services to residents; consequently, these assets are not available for future spending. This category of net position increased mainly from the construction of ongoing, or nearly completed projects such as the city-wide tree well project, Gateway Arch Project, Electrical service upgrades, Well and Reservoir rehabilitation, and upgrading the existing fiber optics network system. The City's restricted net position totals $42.8 million. Restricted net position represents resources that are subject to external restrictions on how they may be used, such as debt. The remaining deficit balance of $58.4 million represents unrestricted net position. Total net position increased by $81.0 million from an excess of revenues over expenses. This net increase was reflected by an increase of $53.7, $21.8, and $5.5 million in unrestricted net position net investment in capital assets and restricted net position, respectively. The excess of revenues over expenses will be analyzed in conjunction with the Statement of Activities. 2023 2022 2023 2022 2023 2022 Assets: Current and other assets 47,272,062$ 31,543,883$ 189,058,515$ 190,425,409$ 236,330,577$ 221,969,292$ Restricted assets 2,824,858 6,267,964 36,427,615 46,383,084 39,252,473 52,651,048 Capital assets 162,262,242 163,093,528 465,066,379 458,427,644 627,328,621 621,521,172 Total assets 212,359,162 200,905,375 690,552,509 695,236,137 902,911,671 896,141,512 Deferred Outflows of Resources Deferred outflows related to pensions 48,056,290 23,034,461 14,399,006 5,338,797 62,455,296 28,373,258 Deferred outflows related to OPEB liability 3,906,490 2,856,840 1,170,494 662,143 5,076,984 3,518,983 Deferred amount on bond refunding - - 1,731,362 1,933,345 1,731,362 1,933,345 Total deferred outflows of resources 51,962,780 25,891,301 17,300,862 7,934,285 69,263,642 33,825,586 Liabilities: Current liabilities 7,167,000 4,494,931 76,168,309 23,591,507 83,335,309 28,086,438 Long term liabilities 138,346,981 92,405,587 395,093,373 485,156,669 533,440,354 577,562,256 Total liabilities 145,513,981 96,900,518 471,261,682 508,748,176 616,775,663 605,648,694 Deferred Inflows of Resources Deferred inflows related to pensions 6,073,932 44,972,489 1,819,920 10,423,470 7,893,852 55,395,959 Deferred inflows related to OPEB liability 4,639,817 6,807,966 1,390,219 1,577,912 6,030,036 8,385,878 Deferred inflows related to Leases 3,704,545 3,803,114 - - 3,704,545 3,803,114 Total deferred outflows of resources 14,418,294 55,583,569 3,210,139 12,001,382 17,628,433 67,584,951 Net Position: Net investment in capital assets 161,850,189 162,746,593 191,510,736 168,787,837 353,360,925 331,534,430 Restricted 5,750,277 4,422,510 37,049,052 32,836,544 42,799,329 37,259,054 Unrestricted (deficit)(63,210,799) (92,856,514) 4,821,762 (19,203,517) (58,389,037) (112,060,031) Total net position 104,389,667$ 74,312,589$ 233,381,550$ 182,420,864$ 337,771,217$ 256,733,453$ Governmental Activities Business-type Activities Totals . . Item 11 Page 19 of 126 City of Vernon, California Management’s Discussion and Analysis (Unaudited) (Continued) 8 With the implementation of GASB 96, the City was required to report long-term subscriptions in the financial statements. The following categories were added to the financial statements: intangible (right-to- use asset) subscription assets, and subscription liabilities. Additional information and discussion of these can be found in Notes 1H, 1N, and 5 of the City’s Notes to the Basic Financial Statements. Following is a summary of the government-wide Statement of Activities which illustrates the City’s overall $81.0 million increase in net position resulting from program expenses being less than total program and general revenues. A discussion regarding significant changes in revenues and expenses follows the table. City of Vernon Statement of Activities Years ended June 30, 2023 and 2022 2023 2022 2023 2022 2023 2022 Revenues: Program revenues Charges for services 12,528,733$ 10,764,696$ -$ -$ 12,528,733$ 10,764,696$ Vernon public utilities - - 262,570,096 238,570,758 262,570,096 238,570,758 Operating and capital grants and contributions 1,670,481 5,262,389 - 865,403 1,670,481 6,127,792 General revenues - - - - - - Taxes 43,386,468 41,787,626 - - 43,386,468 41,787,626 Sales and Use Tax 16,485,569 14,989,046 - - 16,485,569 14,989,046 Investment income (loss)414,374 100,809 4,711,672 285,622 5,126,046 386,431 Rental income 519,373 208,039 - - 519,373 208,039 Other revenues 2,072,655 2,736,631 - - 2,072,655 2,736,631 Gain (loss) on the sale of land and assets 67,582 - (989,157) - (921,575) - Total revenues 77,145,235 75,849,236 266,292,611 239,721,783 343,437,846 315,571,019 Expenses: Governmental activities General government 15,151,873 17,564,758 - - 15,151,873 17,564,758 Public safety 17,615,641 35,417,532 - - 17,615,641 35,417,532 Public works 13,266,854 11,811,876 - - 13,266,854 11,811,876 Health services 1,523,844 1,416,058 - - 1,523,844 1,416,058 Interest on long-term debt 1,487 199 - - 1,487 199 Business-type activities - - - - - - Vernon public utilities - - 214,840,383 204,525,037 214,840,383 204,525,037 Total expenses 47,559,699 66,210,423 214,840,383 204,525,037 262,400,082 270,735,460 Change in net position before transfers 29,585,536 9,638,813 51,452,228 35,196,746 81,037,764 44,835,559 Transfers: Interfund transfers 491,542 181,387 (491,542) (181,387) - - Net Transfers 491,542 181,387 (491,542) (181,387) - - Change in net position 30,077,078 9,820,200 50,960,686 35,015,359 81,037,764 44,835,559 Net position - beginning of year 74,312,589 64,492,389 182,420,864 147,405,505 256,733,453 211,897,894 Net position - end of year 104,389,667$ 74,312,589$ 233,381,550$ 182,420,864$ 337,771,217$ 256,733,453$ Business-type ActivitiesGovernmental Activities Totals . . Item 11 Page 20 of 126 City of Vernon, California Management’s Discussion and Analysis (Unaudited) (Continued) 9 Government-wide revenues increased by $27.9 million to $343.3 million. The majority of this increase resulted from an increase of $24.0 million Vernon Public Utilities charges for services, an increase of $4.7 million in Investment Income partially due to interest income derived from the City’s investment portfolio performing better as compared to prior year due to the rise in interest rates. Operating and capital grants decreased by $4.5 million as compared to the prior year, as there was a slow down on the Atlantic Bridge widening project this year. The remaining changes include all other governmental activities accounting for a net $1.8 million increase mainly comprised of $1.5 million increase in sales and use tax revenue. The most significant portion of the City's revenue came from sales and use taxes, parcel taxes, ad utility user taxes which accounted for 22.7%, 21.3% and 21.1% of total revenue respectively. Charges for services accounted for 10.3% of total revenue. Additionally, 8% was received from business license taxes, 6.7% from property taxes, and the remaining 9.9% was from franchise taxes, grants, and investment income. Government-wide expenses of all the City programs and services decreased by $8.3 million to $262.4 million. Governmental Activities decreased by $18.7 million while the Business Type Activities increased by $10.3 million. Expenses include adjustments for depreciation, long-term debt, and pension costs. The net decrease in Government-wide expenses is spread across the City's programs with decreases in Public Safety services by $17.8 million, General Government by $2.4 million, and an increase in Vernon Public Utilities of $10.3 million, and Public Works increased by $15 million each. Interest Expense is now presented on a separate line item at $0.6 million and is attributed to long-term debt and leases/subscription liabilities. Vernon Public Utilities accounted for 81.9% of the total costs, General Government for 5.8%, Public Safety for 6.7%, Public Works for 5.1%, and Health for 0.6%. Interest Expense accounts for a minimal amount of the remaining expenses. Governmental activities contributed $29.6 million before transfers to the increase in net position resulting from revenues exceeding expenses. Revenues of governmental activities report a net increase over the prior year of $1.3 million, to $77.1 million. The increase is attributed to a $1.7 million increase in charges for services, $1.5 million increase in sales and use tax, $1.5 million increase is utility users tax, while operating and capital grants decreased by $3.6 million. Expenses of governmental activities decreased by a net $18.7 million. Expenses include adjustments for depreciation, long-term debt, and pension costs. The net decrease is spread across the City's programs with Police decreasing by $17.8 million, General Government decreasing by $2.4 and Public Works increasing by $1.6 million each. Health services and interest expense experienced a very negligible change. . . Item 11 Page 21 of 126 City of Vernon, California Management’s Discussion and Analysis (Unaudited) (Continued) 10 The following two charts show the source and use of funds for Governmental Activities: Property taxes 7% Parcel taxes 21% Utility users taxes 21% Franchise taxes 3% Business license taxes 8% Other Taxes 0%Investment income 0% Rental Income 1% Sales and use taxes 23% Other revenues 4% Operating Grants 1% Capital Grants 1%Charges for services 10% Governmental Activities Revenue by Source FY 2023 General Government 32% Public Safety 37% Public Works 28% Health Services 3% Interest and Fiscal Charges 0% Governmental Activities Expenses by Function FY 2023 . . Item 11 Page 22 of 126 City of Vernon, California Management’s Discussion and Analysis (Unaudited) (Continued) 11 Business-type activities consists of the Electric, Gas, Water and Fiber Utilities Enterprise Funds. The total net position at the end of the year was $233.4 million as compared to $182.4 million at the end of the prior year. This represents an increase in net position of $51.0 million. The increase can largely be attributed to the purchase of Malburg Generating Station and the end of the PPTA agreement which has resulted in savings. Another factor are lowered Transmission firm expenses from Cal ISO. Revenues of $262.3 million consist of charges for services. This is an increase of $27.0 million over the prior year's total revenue of $239.7 million. The increase is mainly due to increased energy cost adjustment pass-through which is directly offset by the increase in cost of energy and natural gas in the expenses. Despite the increases in the aforementioned expenses. - 50,000,000 100,000,000 150,000,000 200,000,000 250,000,000 300,000,000 (In Millions)Vernon Public Utilities Business-type Activities- Revenues and Expenses Years ended June 30, 2023 and 2022 2023 Revenues 2023 Expenditures 2022 Revenues 2022 Expenditures . . Item 11 Page 23 of 126 City of Vernon, California Management’s Discussion and Analysis (Unaudited) (Continued) 12 FINANCIAL ANALYSIS OF THE GOVERNMENTAL FUNDS As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance- related legal requirements. Governmental funds The focus of the City's governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City's financing requirements. In particular, the nonspendable, restricted, committed, assigned, and unassigned fund balances may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year. At the end of the current fiscal year, the City's governmental funds reported a combined ending fund balances of $42.0 million (see page 31), an increase of $14.1 million from the prior year. Approximately 0.28% of the total fund balance amount, $116 thousand, constitutes nonspendable fund balance, which are amounts that are not in a spendable form or are required to be maintained intact. Approximately 13.69% of the total fund balance amount, $5.8 million, constitutes restricted fund balance, which are amounts that can be spent only for specific purposes stipulated by external resource providers, constitutionally, or through enabling legislation. Approximately 23.81% of the total fund balance amount, $10 million, constitutes committed fund balance, which are amounts that the City Council set aside for various reserves. The remainder of the fund balance amount, $26.1 million is an unassigned fund balance to indicate that it is the residual classification that is not contained in the other classifications. The General Fund is the operating fund of the City. At the end of the current fiscal year, the total fund balance was $42.0 (see page 29). At the end of the current fiscal year, the total fund balance represents 54.1% of the total expenditures for the year. Proprietary funds The City's proprietary funds provide the same type of information found in the government-wide financial statements but in more detail. Unrestricted net position for the Vernon Public Utilities at the end of the year amounted to a balance of $4.8 million (see page 35). This deficit balance in unrestricted net position is primarily due to the proprietary funds being heavily invested in capital assets for which it has not yet recovered the cost of capital invested. The proprietary funds expect to eliminate these deficit balances through increased future revenues. The total increase in net position for the Vernon Public Utilities was $51 million (see page 23). Other factors concerning the finances of these funds have already been addressed in the discussion of the City's business-type activities. . . Item 11 Page 24 of 126 City of Vernon, California Management’s Discussion and Analysis (Unaudited) (Continued) 13 GENERAL FUND AND BUDGETARY HIGHLIGHTS For the current year, the General Fund’s total positive variance between the final budgeted amounts and the actual amount of change in fund balance was $20.3 million. The key reasons for this variance were due to lower actual expenditures than projected of approximately $20.1 million. For the current year, the General Fund’s total positive variance between the final budgeted estimated revenues and actual revenues was $162,546. The main reason for the variance, was that taxes came in higher than expected by $4.4 million offset by intergovernmental revenues coming lower by $5.3 million and charges for services by $1.1 million. For the current year, the General Fund’s total positive variance between the final budgeted amount and the actual amount for expenditures was $20.1 million. The key reasons for this variance were due to higher appropriations than actual expenditures of $14.5 million in capital outlay and related professional services of $1.8 million in public works as well as a reduction in the LA County contracted services of $1.8 million. CAPITAL ASSET AND DEBT ADMINISTRATION Capital assets The City's investment in capital assets for its governmental and business-type activities as of June 30, 2023, amounts to $627.3 million (net of accumulated depreciation). This investment in capital assets includes land, construction in progress, building, utility system improvements, machinery and equipment, infrastructure such as roads, and intangible assets such as environmental emission credits. The increase in capital assets of $5.7 million is mainly due to city-wide tree well project, Gateway Arch Project, Electrical service upgrades, Well and Reservoir rehabilitation, and upgrading the existing fiber optics network system. For additional information see Note 5 of this report. Outstanding debt As of June 30, 2023, the following debt remains outstanding:  $36,870,000 City of Vernon Electric System Revenue Bonds, 2008 Taxable Series A  $5,340,000 City of Vernon Electric System Revenue Bonds, 2012 Taxable Series B  $89,180,000 City of Vernon Electric System Revenue Bonds, 2015 Taxable Series A  $19,305,000 City of Vernon Electric System Revenue Bonds, 2020 Series A  $153,435,000 City of Vernon Electric System Revenue Bonds, 2021 Taxable Series A  $52,070,000 City of Vernon Electric System Revenue Bonds, 2022 Taxable Series A  $14,350,000 City of Vernon Water System Revenue Bonds, 2020 Taxable Series A  $1,081,395 City of Vernon agreement with the Water Replenishment District of Southern California . . Item 11 Page 25 of 126 City of Vernon, California Management’s Discussion and Analysis (Unaudited) (Continued) 14 The City of Vernon Electric System Revenue Bonds, 2008 Taxable Series A were issued to provide funds to (i) finance the cost of certain capital improvements to the City’s Electric System, (ii) fund a deposit to the Debt Service Reserve Fund, and (iii) to pay costs of issuance of the 2008 Bonds. The City of Vernon Electric System Revenue Bonds, 2012 Taxable Series B were issued to provide funds to (i) refund the $28,680,000 aggregate principal amount of 2009 Bonds maturing on August 1, 2012, (ii) to pay a portion of the Costs of the 2012 Project, and (iii) to pay costs of issuance of the 2012 Taxable Series B Bonds. The City of Vernon Electric System Revenue Bonds, 2015 Taxable Series A were issued to provide funds to (i) refund a portion of the Outstanding Electric System Revenue Bonds, 2009 Series A; (ii) finance the costs of certain capital improvements to the City’s Electric System by reimbursing the Electric System for the prior payment of such costs from the Light and Power Fund; (iii) fund a deposit to the Debt Service Reserve Fund; and (iv) pay costs of issuance of the 2015 Bonds. The City of Vernon Electric System Revenue Bonds, 2020 Series A were issued to provide funds to (i) finance the acquisition and construction of certain capital improvements to the Electric System of the City, (ii) to refund all of the City’s outstanding Electric System Revenue Bonds, 2009 Series A, and (iii) to pay costs of issuance of the 2020 Bonds. The City of Vernon Electric System Revenue Bonds, 2021 Series A were issued to provide funds: (i) to pay the costs of the acquisition by the City of Vernon of a 134-megawatt natural gas-fired generating facility located within the city limits on land owned by the City, together with certain related electrical interconnection facilities and other assets, property, and contractual rights, (ii) to fund a deposit to the Debt Service Reserve Fund in satisfaction of the Debt Service Reserve Requirement, and (iii) to pay costs of issuance of the 2021 Bonds. The City of Vernon Electric System Revenue Bonds, 2022 Series A were issued to (i) refund and defease all the City’s outstanding Electric System Revenue Bonds, 2012 Series A and a portion of the City’s outstanding Electric System Revenue Bonds, 2012 Taxable Series B and (ii) to pay costs of issuance of the 2022 Bonds. The City of Vernon Water System Revenue Bonds, 2020 Series A were issued to provide funds to (i) finance the acquisition and construction of certain capital improvements to the Water System of the City, (ii) purchase a municipal bond debt service reserve insurance policy for deposit in the Reserve Fund in satisfaction of the Reserve Requirement, and (iii) to pay costs of issuance of the 2020 Bonds. As of June 30, 2023, the ratings on all Electric System Revenue Bonds of the City were BBB+/Stable by S&P and Baa1/Stable by Moody’s. The rating on Water System Revenue Bonds is A-/Stable by S&P and not rated by Moody’s. Additional information on the City's long-term debt can be found in Note 6 of this report. . . Item 11 Page 26 of 126 City of Vernon, California Management’s Discussion and Analysis (Unaudited) (Continued) 15 ECONOMIC FACTORS AND NEW YEAR’S BUDGET AND RATES Local and state economies experienced continual growth throughout fiscal year 2022-23, with tapering in the latter months due to prolonged historical high inflation and the increased interest rates by the Federal Reserve. Cities continue to be challenged in forecasting the economy and preparing the budget for the next fiscal year. The City has been fortunate in its specific mix of businesses, which has proven to be resilient in response to volatile economic changes. These factors were considered in preparing the City and VPU’s budget for fiscal year 2023-24.  The City developed a conservative spending plan addressing City Council and community priorities while focusing on operations at full capacity, deferring maintenance and operational needs while still focused on delivering quality core municipal services.  VPU continues to respond to inflation and supply chain issues, including higher energy, natural gas, materials and supplies, chemicals, and construction costs to maintain generation, transmission, and distribution infrastructure to continue to provide exceptionally reliable service.  Continue to implement VPU’s capital plan, manage operating and maintenance expenses, update the 2018 Integrated Resource Plan, complete an Electric Cost of Service Analysis and Rate Design study, transition customer load growth to green commerce, optimize the MGS operating profile, and continue to implement the multi-year water rate adjustment plan approved by City Council. REQUESTS FOR INFORMATION This financial report is designed to provide a general overview of the City's finances for all those with an interest in the City's finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Director of Finance at the City of Vernon, 4305 Santa Fe Avenue, Vernon, California, 90058. . . Item 11 Page 27 of 126 16 This page intentionally left blank. . . Item 11 Page 28 of 126 BASIC FINANCIAL STATEMENTS 17 . . Item 11 Page 29 of 126 This page intentionally left blank. 18 . . Item 11 Page 30 of 126 GOVERNMENT-WIDE FINANCIAL STATEMENTS 19 . . Item 11 Page 31 of 126 Governmental Business-Type Activities Activities Total ASSETS Current assets: Cash and investments 33,979,557$ 153,374,024$ 187,353,581$ Accounts receivable, net 2,015,947 14,760,699 16,776,646 Taxes receivable 4,313,563 - 4,313,563 Interest receivable - 376,475 376,475 Due from other government 2,250 8,829 11,079 Notes and loans receivable 17,132 - 17,132 Other receivables 12,860 - 12,860 Accrued unbilled revenue - 19,771,908 19,771,908 Internal balances 3,045,159 (3,045,159) - Lease receivable - due within one year 68,058 - 68,058 Prepaid expenses 115,995 163,337 279,332 Inventory - 570,202 570,202 Total current assets 43,570,521 185,980,315 229,550,836 Noncurrent assets: Restricted cash and investments 2,824,858 36,427,615 39,252,473 Lease receivable, due in more than one year 3,701,541 - 3,701,541 Prepaid items - 977,070 977,070 Deposits - 2,101,130 2,101,130 Capital assets: Capital assets, not being depreciated 66,415,785 75,215,406 141,631,191 Capital assets, being depreciated, net 95,372,294 389,850,973 485,223,267 Intangible assets, being amortized, net 474,163 - 474,163 Total capital assets, net 162,262,242 465,066,379 627,328,621 Total noncurrent assets 168,788,641 504,572,194 673,360,835 Total assets 212,359,162 690,552,509 902,911,671 DEFERRED OUTFLOWS OF RESOURCES Pension related items 48,056,290 14,399,006 62,455,296 Other postemployment benefits related items 3,906,490 1,170,494 5,076,984 Deferred charges on refunding - 1,731,362 1,731,362 Total deferred outflows of resources 51,962,780 17,300,862 69,263,642 City of Vernon Primary Government June 30, 2023 Statement of Net Position See accompanying Notes to the Basic Financial Statements. 20 . . Item 11 Page 32 of 126 Governmental Business-Type Activities Activities Total LIABILITIES Current liabilities: Accounts payable 2,785,987 15,397,491 18,183,478 Accrued wages and benefits 670,617 422,751 1,093,368 Accrued interest payable - 7,064,261 7,064,261 Unearned revenue 702,202 - 702,202 Customer deposits payable 241,790 660,943 902,733 Lease liabilities - due within one year 6,347 - 6,347 Subscription liabilities - due within one year 196,027 - 196,027 Compensated absences - due within one year 928,824 383,328 1,312,152 Claims and judgments - due within one year 1,635,206 - 1,635,206 Bonds payable - due within one year - 52,100,000 52,100,000 Note payable - due within one year - 139,535 139,535 Total current liabilities 7,167,000 76,168,309 83,335,309 Noncurrent liabilities: Subscription liabilities - due in more than one year 209,679 - 209,679 Compensated absences - due in more than one year 1,857,649 766,656 2,624,305 Claims and judgments - due in more than one year 2,311,608 - 2,311,608 Bonds payable - due in more than one year - 353,244,291 353,244,291 Note payable - due in more than one year - 941,860 941,860 Net pension liability 121,359,740 36,362,766 157,722,506 Net other postemployment benefits liability 12,608,305 3,777,800 16,386,105 Total noncurrent liabilities 138,346,981 395,093,373 533,440,354 Total liabilities 145,513,981 471,261,682 616,775,663 DEFERRED INFLOWS OF RESOURCES Pension related items 6,073,932 1,819,920 7,893,852 Other postemployment benefits related items 4,639,817 1,390,219 6,030,036 Lease 3,704,545 - 3,704,545 Total deferred inflows of resources 14,418,294 3,210,139 17,628,433 NET POSITION Net investment in capital assets 161,850,189 191,510,736 353,360,925 Restricted: Debt service - 34,116,035 34,116,035 Assembly Bill 1890 2,933,017 2,933,017 Employee flexible spending account 23,590 - 23,590 Street improvements 3,897,139 - 3,897,139 Asset forfeiture funds 459,041 - 459,041 Drug abuse program 5,232 - 5,232 Metropolitan transit authority 27,208 - 27,208 Safe clean water program 1,338,067 - 1,338,067 Unrestricted (deficit) (63,210,799) 4,821,762 (58,389,037) 104,389,667$ 233,381,550$ 337,771,217$ Total net position Primary Government June 30, 2023 Statement of Net Position (Continued) City of Vernon See accompanying Notes to the Basic Financial Statements. 21 . . Item 11 Page 33 of 126 Operating Capital Charges for Grants and Grants and Functions/Programs Expenses Services Contributions Contributions Governmental Activities: General government 15,151,873$ 9,680,621$ 2,341$ -$ Public safety 17,615,641 183,483 686,359 - Public works 13,266,854 2,036,231 4,709 977,072 Health services 1,523,844 628,398 - - Interest and fiscal charges 1,487 - - - Total governmental activities 47,559,699 12,528,733 693,409 977,072 Business-type Activities: Electric 188,823,910 233,135,904 - - Gas 18,180,746 19,064,515 - - Water 7,353,002 9,844,537 - - Fiber optics 482,725 525,140 - - Total business-type activities 214,840,383 262,570,096 - - Total primary government 262,400,082$ 275,098,829$ 693,409$ 977,072$ Program Revenues City of Vernon Statement of Activities For the Year Ended June 30, 2023 See accompanying Notes to the Financial Statements. 22 . . Item 11 Page 34 of 126 Governmental Business-Type Functions/Programs Activities Activities Total Governmental Activities: General government (5,468,911)$ -$ (5,468,911)$ Public safety - fire (16,745,799) - (16,745,799) Public safety - police (10,248,842) - (10,248,842) Economic development (895,446) - (895,446) Interest and fiscal charges (1,487) - (1,487) Total governmental activities (33,360,485) - (33,360,485) Business-type Activities: Electric - 44,311,994 44,311,994 Gas - 883,769 883,769 Water - 2,491,535 2,491,535 Fiber optics - 42,415 42,415 Total business-type activities - 47,729,713 47,729,713 Total primary government (33,360,485) 47,729,713 14,369,228 General revenues and transfers: General revenues: Taxes: Property taxes 4,840,920 - 4,840,920 Parcel taxes 15,452,698 - 15,452,698 Utility users taxes 15,313,832 - 15,313,832 Franchise taxes 1,997,970 - 1,997,970 Business license taxes 5,781,048 - 5,781,048 Sales and use taxes 16,485,569 - 16,485,569 Total taxes 59,872,037 - 59,872,037 Investment income 414,374 4,711,672 5,126,046 Rental income 519,373 - 519,373 Other income 2,072,655 - 2,072,655 Loss on disposal of capital assets 67,582 (989,157) (921,575) Total general revenues 62,946,021 3,722,515 66,668,536 Transfers 491,542 (491,542) - Changes in net position 30,077,078 50,960,686 81,037,764 Net position - beginning of year 74,312,589 182,420,864 256,733,453 Net position - end of year 104,389,667$ 233,381,550$ 337,771,217$ Net (Expenses) Revenues and Changes in Net Position City of Vernon Statement of Activities (Continued) For the Year Ended June 30, 2023 See accompanying Notes to the Financial Statements. 23 . . Item 11 Page 35 of 126 This page intentionally left blank. 24 . . Item 11 Page 36 of 126 FUND FINANCIAL STATEMENTS 25 . . Item 11 Page 37 of 126 This page intentionally left blank. 26 . . Item 11 Page 38 of 126 GOVERNMENTAL FUND FINANCIAL STATEMENTS 27 . . Item 11 Page 39 of 126 This page intentionally left blank. 28 . . Item 11 Page 40 of 126 General Fund ASSETS Cash and investments 33,979,557$ Accounts receivable, net 2,015,947 Taxes receivable 4,313,563 Lease receivable 3,769,599 Due from other government 2,250 Due from other funds 3,045,195 Notes and loans receivable 17,132 Other receivables 12,860 Inventories and prepaid items 115,995 Restricted assets: Restricted cash and investments 2,824,858 Total assets 50,096,956$ LIABILITIES, DEFERRED INFLOW OF RESOURCES, AND FUND BALANCE Liabilities: Accounts payable 2,785,987$ Accrued wages and benefits 670,617 Unearned revenue 702,202 Deposits payable 241,790 Due to other funds 36 Total liabilities 4,400,632 Deferred inflow of resources: Leases 3,704,545 Total deferred inflow of resources 3,704,545 Fund Balance: Nonspendable 115,995 Restricted for: Employee Flexible Spending Account 23,590 Street improvements 3,897,139 Asset forfeiture funds 459,041 Drug Abuse Program 5,232 Metropolitan Transit Authority 27,208 Safe Clean Water Program 1,338,067 Committed 10,000,000 Unassigned 26,125,507 Total fund balance 41,991,779 Total liabilities, deferred inflow of resources, and fund balance 50,096,956$ City of Vernon Balance Sheet Governmental Fund June 30, 2023 See accompanying Notes to the Basic Financial Statements. 29 . . Item 11 Page 41 of 126 Total Fund Balances - Total Governmental Funds 41,991,779$ Amounts reported for governmental activities in the statement of net position are different because: Nondepreciable assets 66,415,785$ Depreciable assets, net 95,372,294 Intangible assets, net 474,163 162,262,242 48,056,290 Net pension liability (121,359,740) (6,073,932) 3,906,490 Net OPEB liabilities (12,608,305) (4,639,817) (6,347) (405,706) (2,786,473) (3,946,814) Net position of governmental activities 104,389,667$ Claims payable Net pension liabilities and the related deferred outflows of resources and deferred inflows of resources are not due and payable in the current period or not available for current expenditures and are not reported in the governmental fund financial statements: Pension related deferred outflows of resources Pension related deferred inflows of resources Net other postemployment benefits liability and the related deferred outflows of resources and deferred inflows of resources are not due and payable in the current period or not available for current expenditures and are not reported in the governmental fund financial statements: OPEB related deferred outflows of resources OPEB related deferred inflows of resources Long-term liabilities applicable to the City's governmental activities are not due and payable in the current period and, accordingly are not reported as fund liabilities. All liabilities, both current and long-term are reported in the Statement of Net Position. Those liabilities consist of: Compensated absences Subscription liability Lease liability Amount reported in government-wide statement of position: City of Vernon Reconciliation of the Governmental Fund Balance Sheet to the Government-Wide Statement of Net Position June 30, 2023 Capital assets used in governmental activities are not current financial resources and therefore are not reported in governmental funds. Those assets consist of: See accompanying Notes to the Basic Financial Statements. 30 . . Item 11 Page 42 of 126 General Fund REVENUES: Taxes 59,628,704$ Special assessments 1,878,995 Licenses, and permits 2,387,396 Fines, forfeitures, and penalties 273,830 Intergovernmental 2,353,070 Investment earnings 414,374 Charges for services 10,245,375 Rent income 519,373 Other revenues 1,043,247 Total revenues 78,744,364 EXPENDITURES: Current: General government 15,630,351 Public safety 33,860,124 Public works 9,695,296 Health services 1,691,036 Capital outlay 4,593,430 Debt service: Principal retirement 225,620 Interest and fiscal charges 1,487 Total expenditures 65,697,344 REVENUES OVER EXPENDITURES 13,047,020 OTHER FINANCING SOURCES: Transfer in 491,542 Proceeds from sale of capital asset 67,582 Issuance of debt 538,544 Total other financing sources 1,097,668 NET CHANGE IN FUND BALANCE 14,144,688 FUND BALANCE: Beginning of year 27,847,091 End of year 41,991,779$ For the Year Ended June 30, 2023 Governmental Fund Statement of Revenues, Expenditures, and Change in Fund Balance City of Vernon See accompanying Notes to the Basic Financial Statements. 31 . . Item 11 Page 43 of 126 Net change in fund balances - total governmental funds: 14,144,688$ Amounts reported for governmental activities in the Statement of Activities are different because: Capital outlay expenditures, net of functional expenses of $(15,750)4,609,180$ Depreciation and amortization expense (5,507,935) (898,755) (1,666,711) Change in compensated absences (112,543) Change in claims payable 993,918 Pension expense, net of pension contribution made after measurement date 14,027,190 OPEB expense, net of OPEB contribution made after measurement date 3,902,215 Issuance of long-term debt (538,544) Principal repayment of long-term debt 225,620 Change in net position of governmental activities 30,077,078$ Some expenses reported in the Statement of Activities do not require the use of current financial resources and therefore are not reported as expenditures in the governmental funds: City of Vernon in Fund Balance to the Government-Wide Statement of Activities For the Year Ended June 30, 2023 Governmental funds report capital outlays as expenditures. However, in the Statement of Activities, the cost of those capital assets is allocated over the estimated useful lives as depreciation expense. This is the amount by which capital expenditures exceeded depreciation in the current period: Certain accrued revenues such as grants do not provide current financial resources and therefore, are not reported in the governmental funds as revenues. This is the amount of the net change in these accrued revenue amounts during the current period. Reconciliation of the Governmental Fund Statement of Revenues, Expenditures, and Change See accompanying Notes to the Basic Financial Statements. 32 . . Item 11 Page 44 of 126 PROPRIETARY FUND FINANCIAL STATEMENTS 33 . . Item 11 Page 45 of 126 Nonmajor Electric Gas Water (Fiber Optics) Fund Fund Fund Fund Total ASSETS Current assets: Cash and investments 117,511,564$ 16,776,807$ 17,994,763$ 1,090,890$ 153,374,024$ Accounts receivable, net 13,592,491 191,638 943,517 33,053 14,760,699 Interest receivable 367,547 - 8,928 - 376,475 Accrued unbilled revenue 17,231,152 1,025,232 1,515,524 - 19,771,908 Due from other government 8,829 - - - 8,829 Due from other funds - - 18,247 36 18,283 Prepaid items 159,007 - 4,330 - 163,337 Inventory 570,202 - - - 570,202 Total current assets 149,440,792 17,993,677 20,485,309 1,123,979 189,043,757 Noncurrent assets: Restricted cash and investments 34,278,926 - 2,148,689 - 36,427,615 Advances to other funds 33,926,562 - - - 33,926,562 Prepayment to Southern California Public Power Authority 977,070 - - - 977,070 Deposits 2,101,130 - - - 2,101,130 Capital assets: Capital assets, not being depreciated 63,837,963 - 11,111,271 266,172 75,215,406 Capital assets, being depreciated, net 362,862,804 14,672,800 11,302,440 1,012,929 389,850,973 Total capital assets 426,700,767 14,672,800 22,413,711 1,279,101 465,066,379 Total noncurrent assets 497,984,455 14,672,800 24,562,400 1,279,101 538,498,756 Total assets 647,425,247 32,666,477 45,047,709 2,403,080 727,542,513 DEFERRED OUTFLOW OF RESOURCES Pension related items 11,703,498 860,759 1,821,009 13,740 14,399,006 Other postemployment benefits related items 951,376 69,971 148,030 1,117 1,170,494 Deferred charges on refunding 1,731,362 - - - 1,731,362 Total deferred outflow of resources 14,386,236$ 930,730$ 1,969,039$ 14,857$ 17,300,862$ (Continued) Enterprise Funds City of Vernon Statement of Net Position Proprietary Funds June 30, 2023 Business-Type Activities See accompanying Notes to the Basic Financial Statements. 34 . . Item 11 Page 46 of 126 Nonmajor Electric Gas Water (Fiber Optics) Fund Fund Fund Fund Total LIABILITIES Current liabilities: Accounts payable 14,053,698$ 53,542$ 1,279,568$ 10,683$ 15,397,491$ Accrued wages and benefits 369,773 21,106 31,872 - 422,751 Accrued interest payable 6,826,980 - 237,281 - 7,064,261 Due to other funds 2,953,113 - 110,329 - 3,063,442 Customer deposits 410,497 13,558 236,888 - 660,943 Compensated absences, due within one year 334,712 14,283 34,155 178 383,328 Bonds payable, due within one year 51,835,000 - 265,000 - 52,100,000 Note payable, due within one year - - 139,535 - 139,535 Total current liabilities 76,783,773 102,489 2,334,628 10,861 79,231,751 Noncurrent liabilities: Advances from other funds - 29,405,104 - 4,521,458 33,926,562 Compensated absences, due in more than one year 669,422 28,567 68,311 356 766,656 Bonds payable, due in more than one year 338,642,538 - 14,601,753 - 353,244,291 Note payable, due in more than one year - - 941,860 - 941,860 Net pension liability 29,555,620 2,173,732 4,598,715 34,699 36,362,766 Net other postemployment benefits liability 3,070,592 225,833 477,770 3,605 3,777,800 Total noncurrent liabilities 371,938,172 31,833,236 20,688,409 4,560,118 429,019,935 Total liabilities 448,721,945 31,935,725 23,023,037 4,570,979 508,251,686 DEFERRED INFLOWS OF RESOURCES Pension related items 1,479,229 108,793 230,161 1,737 1,819,920 Other postemployment benefits related items 1,129,968 83,106 175,818 1,327 1,390,219 Total deferred inflows of resources 2,609,197 191,899 405,979 3,064 3,210,139 NET POSITION Net investment in capital assets 167,320,725 14,672,800 8,238,110 1,279,101 191,510,736 Restricted for: Debt service 33,955,595 - 160,440 - 34,116,035 Assembly Bill 1890 2,933,017 - - - 2,933,017 Unrestricted (deficit)6,271,004 (13,203,217) 15,189,182 (3,435,207) 4,821,762 Total net position 210,480,341$ 1,469,583$ 23,587,732$ (2,156,106)$ 233,381,550$ (Concluded) Business-Type Activities Enterprise Funds City of Vernon Statement of Net Position (Continued) Proprietary Funds June 30, 2023 See accompanying Notes to the Basic Financial Statements. 35 . . Item 11 Page 47 of 126 This page intentionally left blank. 36 . . Item 11 Page 48 of 126 Nonmajor Electric Gas Water (Fiber Optics) Fund Fund Fund Fund Totalp OPERATING REVENUES: Charges for services 233,135,904$ 19,064,515$ 9,844,537$ 525,140$ 262,570,096$ Total operating revenues 233,135,904 19,064,515 9,844,537 525,140 262,570,096 OPERATING EXPENSES: Cost of sales 151,898,323 17,474,385 6,226,053 272,564 175,871,325 Depreciation expense 22,734,810 706,361 575,512 210,161 24,226,844 Total operating expenses 174,633,133 18,180,746 6,801,565 482,725 200,098,169 OPERATING INCOME 58,502,771 883,769 3,042,972 42,415 62,471,927 NONOPERATING REVENUES (EXPENSES): Investment income 4,198,611 181,160 327,529 5,998 4,713,298 Net decrease in fair value of investments (1,626) - - - (1,626) Interest expense (14,190,777) - (551,437) - (14,742,214) Transfers out (491,542) - - - (491,542) Gain (loss) on disposal of assets (1,004,046) - 14,889 - (989,157) Total nonoperating revenues (expenses)(11,489,380) 181,160 (209,019) 5,998 (11,511,241) CHANGE IN NET POSITION 47,013,391 1,064,929 2,833,953 48,413 50,960,686 NET POSITION: Beginning of year 163,466,950 404,654 20,753,779 (2,204,519) 182,420,864 End of year 210,480,341$ 1,469,583$ 23,587,732$ (2,156,106)$ 233,381,550$ City of Vernon Statement of Revenues, Expenses, and Changes in Net Position Proprietary Funds Enterprise Funds For the Year Ended June 30, 2023 Business-Type Activities See accompanying Notes to the Basic Financial Statements. 37 . . Item 11 Page 49 of 126 Nonmajor Electric Gas Water (Fiber Optics) Fund Fund Fund Fund Total CASH FLOWS FROM OPERATING ACTIVITIES: Cash receipts from customers and users 230,220,383$ 19,668,732$ 9,900,629$ 636,340$ 260,426,084$ Cash paid to suppliers for goods and services (137,074,541) (16,731,644) (5,024,168) (272,394) (159,102,747) Cash paid to employees for services (13,451,748) (1,141,181) (2,053,190) (14,536) (16,660,655) Net cash provided by operating activities 79,694,094 1,795,907 2,823,271 349,410 84,662,682 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Transfer to City (491,542) - - - (491,542) Receipt from other funds 61,570 6,178,906 313,127 667,766 7,221,369 Payment to other funds (6,858,636) (71,583) (18,247) (36) (6,948,502) Net cash provided by (used in) noncapital financing activities (7,288,608) 6,107,323 294,880 667,730 (218,675) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Acquisition of capital assets (24,759,717) - (6,721,212) (426,102) (31,907,031) Proceed from sale of capital assets 37,406 - 14,889 - 52,295 Principal paid on long-term debt (50,110,000) - (389,535) - (50,499,535) Interest paid on long-term debt (19,480,488) - (575,726) - (20,056,214) Net cash (used in) capital and related financing activities (94,312,799) - (7,671,584) (426,102) (102,410,485) CASH FLOWS FROM INVESTING ACTIVITIES: Interest received 3,914,187 181,160 323,049 5,998 4,424,394 Net cash provided by investing activities 3,914,187 181,160 323,049 5,998 4,424,394 Net increase (decrease) in cash and cash equivalents (17,993,126) 8,084,390 (4,230,384) 597,036 (13,542,084) CASH AND CASH EQUIVALENTS: Beginning of year 169,783,616 8,692,417 24,373,836 493,854 203,343,723 End of year 151,790,490$ 16,776,807$ 20,143,452$ 1,090,890$ 189,801,639$ CASH AND CASH EQUIVALENTS: Cash and investment 117,511,564$ 16,776,807$ 17,994,763$ 1,090,890$ 153,374,024$ Restricted cash and investment 34,278,926 - 2,148,689 - 36,427,615 Total cash and cash equivalents 151,790,490$ 16,776,807$ 20,143,452$ 1,090,890$ 189,801,639$ (Continued) Business-Type Activities Enterprise Funds City of Vernon Statement of Cash Flows Proprietary Funds For the Year Ended June 30, 2023 See accompanying Notes to the Basic Financial Statements. 38 . . Item 11 Page 50 of 126 Nonmajor Electric Gas Water (Fiber Optics) Fund Fund Fund Fund Total INCOME (LOSS) TO NET CASH (USED IN) OPERATING ACTIVITIES: Operating income (loss) 58,502,771$ 883,769$ 3,042,972$ 42,415$ 62,471,927$ Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities: Depreciation 22,734,810 706,361 575,512 210,161 24,226,844 Change in assets and liabilities: (Increase) decrease in accounts receivable (1,196,444) 388,462 198,421 111,200 (498,361) (Increase) decrease in accrued unbilled revenue (819,370) 215,755 (142,329) - (745,944) (Increase) decrease in inventories and prepaid items (56,968) - (4,330) - (61,298) (Increase) decrease in customer deposits (899,707) - - - (899,707) (Increase) decrease in deferred outflows of resources related to pensions (7,687,121) (463,477) (903,730) (5,881) (9,060,209) (Increase) decrease in deferred outflows of resources related to OPEB (453,246) (20,698) (34,265) (142) (508,351) Increase (decrease) in accounts payable (1,774,693) (161,580) (135,694) (3,051) (2,075,018) Increase (decrease) in accrued wages and benefits 35,859 (6,926) (12,423) (363) 16,147 Increase (decrease) in deposits payable (14,929) - 175,704 - 160,775 Increase (decrease) in compensated absences (104,689) 17,719 18,258 291 (68,421) Increase (decrease) in net pension liabilities 17,094,440 941,127 1,752,772 10,315 19,798,654 Increase (decrease) in OPEB liabilities 752,822 (3,431) (51,573) (931) 696,887 Increase (decrease) in deferred inflows of resources related to pension (6,362,346) (666,861) (1,560,735) (13,608) (8,603,550) Increase (decrease) in deferred inflows of resources related to OPEB (57,095) (34,313) (95,289) (996) (187,693) Total adjustment 21,191,323 912,138 (219,701) 306,995 22,190,755 Net cash provided by operating activities 79,694,094$ 1,795,907$ 2,823,271$ 349,410$ 84,662,682$ (Concluded) Proprietary Funds City of Vernon Statement of Cash Flows (Continued) For the Year Ended June 30, 2023 Enterprise Funds Business-Type Activities See accompanying Notes to the Basic Financial Statements. 39 . . Item 11 Page 51 of 126 This page intentionally left blank. 40 . . Item 11 Page 52 of 126 FIDUCIARY FUND FINANCIAL STATEMENTS 41 . . Item 11 Page 53 of 126 This page intentionally left blank. 42 . . Item 11 Page 54 of 126 Private-Purpose Custodial Trust Fund Fund Successor Southeast Water Agency Trust Coalition Joint Fund Powers Authority ASSETS Cash and investments 668,273$ 220,854$ Restricted cash and investments 3,590,059 - Accounts receivable - 3,000 Total assets 4,258,332 223,854 LIABILITIES Current liabilities: Accounts payable 1,000 2,148 Due to other government 11,079 - Bond interest payable 283,372 - Bonds payable, due within one year 3,165,000 - Noncurrent liabilities: Bonds payable, due in more than one year 18,165,000 - Total liabilities 21,625,451 2,148 NET POSITION (DEFICIT) Restricted for other governments (17,367,119)$ 221,706$ City of Vernon Statement of Fiduciary Net Position Fiduciary Funds June 30, 2023 See accompanying Notes to the Basic Financial Statements. 43 . . Item 11 Page 55 of 126 Private-Purpose Custodial Trust Fund Fund Successor Southeast Water Agency Trust Coalition Joint Fund Powers Authority ADDITIONS: Redevelopment property tax trust fund 5,560,421$ -$ Member contributions - 33,000 Investment income 8,720 856 Total additions 5,569,141 33,856 DEDUCTIONS: Community development 1,345,147 - Contractual services - 19,620 Professional fees - 10,965 Policy board compensation - 5,550 Meeting expense - 1,137 Interest expense 1,167,310 - Total deductions 2,512,457 37,272 Change in net position 3,056,684 (3,416) NET POSITION : Beginning of year (20,423,803) 225,122 End of year (17,367,119)$ 221,706$ City of Vernon Statement of Changes in Fiduciary Net Position Fiduciary Funds For the Year Ended June 30, 2023 See accompanying Notes to the Basic Financial Statements. 44 . . Item 11 Page 56 of 126 45 NOTES TO THE BASIC FINANCIAL STATEMENTS . . Item 11 Page 57 of 126 46 This page intentionally left blank. . . Item 11 Page 58 of 126 City of Vernon Index to the Notes to the Basic Financial Statements For the Year Ended June 30, 2023 47 Note 1 – Summary of Significant Accounting Policies ....................................................................................... 49 A. Financial Reporting Entity ................................................................................................................... 49 B. Basis of Accounting and Measurement Focus ..................................................................................... 49 C. Cash, Cash Equivalents and Investments ............................................................................................. 51 D. Fair Value Measurement ...................................................................................................................... 52 E. Interfund Transactions. ........................................................................................................................ 52 F. Inventories and Prepaid Items .............................................................................................................. 52 G. Lease Receivables ................................................................................................................................ 53 H. Capital Assets ....................................................................................................................................... 53 I. Deferred Outflows and Inflows of Resources ...................................................................................... 54 J. Unearned and Unavailable Revenue .................................................................................................... 54 K. Compensated Absences ........................................................................................................................ 55 L. Claims Payable ..................................................................................................................................... 55 M. Lease Liabilities ................................................................................................................................... 55 N. Subscription Liabilities ........................................................................................................................ 55 O. Long-Term Debt .................................................................................................................................. 56 P. Pensions. .............................................................................................................................................. 56 Q. Other Postemployment Benefits (“OPEB”) ......................................................................................... 57 R. Property Taxes ..................................................................................................................................... 57 S. Net Position and Fund Balances .......................................................................................................... 58 T. Use of Estimates................................................................................................................................... 59 U. Implementation of New GASB Pronouncement .................................................................................. 59 Note 2 – Cash and Investments ............................................................................................................................ 59 A. Deposits ................................................................................................................................................ 60 B. Investments .......................................................................................................................................... 61 C. Local Agency Investment Fund (“LAIF”) ........................................................................................... 61 D. Fair Value Measurement ...................................................................................................................... 61 E. Risk Disclosures ................................................................................................................................... 62 Note 3 – Lease Receivable ..................................................................................................................................... 63 Note 4 – Interfund Transactions .......................................................................................................................... 63 A. Due From/To Other Funds ................................................................................................................... 63 B. Advances To/From Other Funds .......................................................................................................... 64 C. Interfund Transfers ............................................................................................................................... 64 Note 5 – Capital Assets .......................................................................................................................................... 65 A. Governmental Activities ...................................................................................................................... 65 B. Business-Type Activities .................................................................................................................... 66 Note 6 – Long-Term Liabilities ............................................................................................................................ 67 A. Governmental Activities ...................................................................................................................... 67 B. Business-Type Activities .................................................................................................................... 68 C. Fiduciary Funds ................................................................................................................................... 73 D. Expense Stabilization Fund .................................................................................................................. 75 E. Right to Accelerate Upon Default ........................................................................................................ 75 F. Credit Rating ........................................................................................................................................ 75 . . Item 11 Page 59 of 126 City of Vernon Index to the Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023 48 Note 7 – Compensated Absences .......................................................................................................................... 75 Note 8 – Risk Management ................................................................................................................................... 76 Note 9 – Pension Plan ............................................................................................................................................ 77 A. General Information about the Pension Plan ....................................................................................... 77 B. Net Pension Liability ........................................................................................................................... 79 C. Changes in the Net Pension Liability ................................................................................................... 81 D. Pension Expense, Deferred Outflows and Inflows of Resources Related to Pensions ........................ 83 Note 10 – Other Postemployment Benefits (“OPEB”) ....................................................................................... 84 A. General Information about the OPEB Plan .......................................................................................... 84 B. Net OPEB Liability .............................................................................................................................. 86 C. Changes in Net OPEB Liability ........................................................................................................... 87 Note 11 – Southern California Public Power Authority .................................................................................... 88 A. Take or Pay Contract ............................................................................................................................ 89 B. Power Purchase Commitments ............................................................................................................ 89 Note 12 – Commitment and Contingencies ......................................................................................................... 91 . . Item 11 Page 60 of 126 City of Vernon Notes to the Basic Financial Statements For the Year Ended June 30, 2023 49 Note 1 – Summary of Significant Accounting Policies The basic financial statements of the City of Vernon, California, (the “City”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) as applied to governmental agencies. The Governmental Accounting Standards Board (“GASB”) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The following is a summary of the significant policies: A. Financial Reporting Entity The City was incorporated on September 16, 1905 under the general laws of the State of California. Effective July 1, 1988, the City became a Charter City. The City operates under a Council-City Administrator form of government. Five Vernon citizens make up the Vernon City Council and each is elected to a five-year term of office. The Mayor position is rotated annually among City Council Members in order of election. The City provides full services to its citizens, including: public safety, public utilities, planning and zoning, and health services. The financial statements include the financial activities of the City of Vernon, the primary government, and its fiduciary component units which include the Vernon Redevelopment Successor and Southeast Water Coalition. The City had no discretely presented component units. B. Basis of Accounting and Measurement Focus The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for by providing a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures or expenses, as appropriate. City resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. The Government-Wide Financial Statements are presented on an “economic resources” measurement focus and the accrual basis of accounting. Accordingly, all of the City’s assets and liabilities, including capital assets, as well as infrastructure assets, and long-term liabilities, are included in the accompanying Statement of Net Position. The Statement of Activities presents changes in net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred. On an accrual basis, revenue from sales taxes is recognized in the period in which the taxable sale takes place. Revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. Eligibility requirements include timing requirements, which specify the year when the resources are required to be used or the year when use is first permitted, matching requirements, in which the City must provide local resources to be used for a specified purpose, and expenditure requirements, in which the resources are provided to the City on a reimbursement basis. Fiduciary activities are not included in these statements. Certain types of transactions are reported as program revenues for the City in three categories:  Charges for services  Operating grants and contributions  Capital grants and contributions . . Item 11 Page 61 of 126 City of Vernon Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023 50 Note 1 – Summary of Significant Accounting Policies (Continued) B. Basis of Accounting and Measurement Focus (Continued) Governmental Fund Financial Statements A Balance Sheet and a Statement of Revenues, Expenditures and Changes in Fund Balance are presented for governmental fund. Accompanying schedules are presented to reconcile and explain the differences in fund balance as presented in these statement, to the net position presented in the government-wide financial statements. Governmental fund is accounted for on a spending or “current financial resources” measurement focus and the modified accrual basis of accounting. Accordingly, only current assets and current liabilities are included on the Balance Sheet. The Statement of Revenues, Expenditures and Change in Fund Balance presents increases (revenue and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Under the modified accrual basis of accounting, revenues are recognized in the accounting period in which they become both “measurable” and “available” to finance expenditures of the current period. For this purpose, the City considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred. However, debt service expenditures, expenditures related to compensated absences, claims and judgments, pension and other post-employment benefits are recorded only when payment is due. Revenues are recorded when received in cash, except those revenues subject to accrual are recognized when due. Property taxes, taxpayer-assessed tax revenues (e.g., franchise taxes, sales taxes, motor vehicle fees, etc.), net of estimated refunds and uncollectible amounts, and intergovernmental revenues associated with the current fiscal period are all considered susceptible to accrual and so have been recognized as revenues of the current fiscal period to the extent normally collected within the availability period, as defined above. The City reports one major governmental fund:  The General Fund is the City's primary operating fund. It used to account for all financial resources of the general government, except those required to be accounted for in another fund. Proprietary Fund Financial Statements Proprietary funds are accounted for using the “economic resources” measurement focus and the accrual basis of accounting. Accordingly, all assets and liabilities (whether current or noncurrent) are included on the Statement of Net Position. The Statement of Revenues, Expenses and Changes in Net Position presents increases (revenues) and decreases (expenses) in total net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the Electric, Gas, Water, and Fiber Optics Enterprise Funds are charges to customers for sales and services. Operating expenses for the proprietary funds include the costs of sales and services, administrative expenses and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. . . Item 11 Page 62 of 126 City of Vernon Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023 51 Note 1 – Summary of Significant Accounting Policies (Continued) B. Basis of Accounting and Measurement Focus (Continued) Proprietary Fund Financial Statements (Continued) The City reports the following major proprietary funds:  Electric Enterprise Fund - accounts for the operation and maintenance of the City's electric utility plant. Revenues for this fund are primarily from charges for services.  Gas Enterprise Fund - accounts for the operation and maintenance of the City's gas utility plant. Revenues for this fund are primarily from charges for services.  Water Enterprise Fund - account for the operation and maintenance of the City's water utility plant. Revenues for this fund are primarily from charges for services. The City also reports a fiber optics nonmajor proprietary fund for the maintenance and operation of the City’s fiber optics utility plant. Fiduciary Fund Financial Statements Fiduciary fund financial statements include a Statement of Fiduciary Net Position and a Statement of Changes in Fiduciary Net Position. The City’s fiduciary funds represent custodial funds and private purpose trust funds. Both custodial funds and the private purpose trust funds are accounted for on the full accrual basis of accounting where the assets associated with the activity are controlled by the City and the assets are not derived 1) solely from the government’s own-source revenues or 2) from government-mandated nonexchange transactions or voluntary nonexchange transactions. The City reports the following two fiduciary funds: Vernon Redevelopment Successor Agency Private-Purpose Trust Fund - The Successor Agency for the former Vernon Redevelopment Agency (the “Successor Agency”) was established on February 1, 2012 in accordance to the Assembly Bill X1 26 that provides for the dissolution of all redevelopment agencies in the State of California. Effective February 1, 2012, successor agencies in California will only be allocated revenue in the amount that is necessary to pay the estimated annual installment payments on enforceable obligations of the former redevelopment agency until all enforceable obligations of the prior redevelopment agency have been paid in full and all assets have been liquidated. The activities of the Successor Agency are reported in a fiduciary fund (private-purpose trust fund) in the financial statements of the City. Custodial Funds - To account for assets and activities related to the Southeast Water Coalition Joint Powers Agreement. C. Cash, Cash Equivalents and Investments The City’s cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term investments with original maturity of three months or less from the date of acquisition. The City pools the main operating cash account. Cash in excess of current requirements is invested and reported as investments. It is the City's intent to hold investments until maturity. However, the City may, in response to market conditions, sell investments prior to maturity in order to improve the quality, liquidity or yield of the portfolio. Interest earnings are apportioned among funds each month based on ending cash and investment balances of each fund. . . Item 11 Page 63 of 126 City of Vernon Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023 52 Note 1 – Summary of Significant Accounting Policies (Continued) C. Cash, Cash Equivalents and Investments (Continued) Highly liquid market investments with maturities of one year or less at time of purchase are stated at amortized cost. All other investments are stated at fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction. In determining the amount, the City uses the market approach, one of the three acceptable valuation techniques. Market approach uses prices generated for identical or similar assets or liabilities. D. Fair Value Measurement U.S. GAAP defines fair value, establishes a framework for measuring fair value and establishes disclosure about fair value measurement. Investments, unless otherwise specified at fair value in the financial statements, are categorized based upon the level of judgment associated with the inputs used to measure their fair value. Levels of inputs are as follows:  Level 1 – Inputs are unadjusted, quoted prices for identical assets or liabilities in active markets at the measurement date.  Level 2 – Inputs, other than quoted prices included in Level 1, that are observable for the assets or liabilities through corroboration with market data at the measurement date.  Level 3 – Unobservable inputs that reflect management’s best estimate of what market participants would use in pricing the assets or liabilities at the measurement date. E. Interfund Transactions Outstanding short-term borrowing between funds are reported as “due from/to other funds”. Interfund loans are reported as advances to and from other funds and are eliminated upon consolidation. Advances to other funds are presented as nonspendable in General Fund’s fund balance to indicate that they are not in a spendable form. Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as "internal balances." F. Inventories and Prepaid Items Inventories within the various fund types consist of materials and supplies which are valued at cost on a first-in, first-out basis. Reported expenditures reflect the consumption method of recognizing inventory-related expenditures. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both the government-wide and fund financial statements by using purchase method. A nonspendable fund balance has been reported in the governmental fund to show that inventories and prepaid items do not constitute “available spendable resources,” even though they are a component of current assets. The City made a prepayment to Southern California Public Power Authority (“SCPPA”) for the City’s share of SCPPA’s payoff of the Hoover Center and Air Slots debt. This prepaid amount is amortized over the life of the debt based on the annual debt services obligation. See Note 11 for further information regarding SCPPA. . . Item 11 Page 64 of 126 City of Vernon Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023 53 Note 1 – Summary of Significant Accounting Policies (Continued) G. Lease Receivable The City is a lessor for leases of land and recognizes lease receivables and deferred inflows of resources in the financial statements. Variable payments based on future performance or usage of the underlying asset are not included in the measurement of the lease receivable. At the commencement of a lease, the lease receivable is measured at the present value of payments expected to be received during the lease term. The City established a threshold of $15,000 for lease receivables. Subsequently, the lease receivable is reduced by the principal portion of lease payments received. The deferred inflows of resources are initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date. Subsequently, the deferred inflows of resources are recognized as revenue over the life of the lease term in a systematic and rational method. Key estimates and judgments include how the City determines (1) the discount rate it uses to discount the expected lease receipts to present value, (2) lease term, and (3) lease receipts.  The City uses incremental borrowing rate (IBR) provided by the financial institution at July 1, 2021 for existing leases or the current rate at the time a new lease is executed.  The lease term includes the noncancelable period of the lease plus any option periods that are likely to be exercised.  Lease receipts included in the measurement of the lease receivable is composed of fixed payments from the lessee. The City monitors changes in circumstances that would require a remeasurement of its lease and will remeasure the lease receivable and deferred inflows of resources if certain changes occur that are expected to significantly affect the amount of the lease receivable. H. Capital Assets In the government-wide and proprietary fund financial statements, capital assets are recorded at cost where historical records are available and at an estimated original cost where no historical records exist. Donated capital assets are valued at their acquisition value. Capital assets include intangible assets with indefinite lives and public domain (infrastructure) general capital assets consisting of certain improvements including roads and bridges, sidewalks, curbs and gutters, and traffic light systems. The capitalization threshold for all capital assets is $5,000. Capital assets used in operations are depreciated using the straight-line method over their estimated useful lives in the government-wide and proprietary funds statements. Capital assets used in operations are depreciated over their estimated useful lives using the straight-line method. The lives used for depreciation purposes are as follows: Assets Years Infrastructures 10-50 Utility Plant and Buildings 25-50 Improvements 10-20 Right-to-use equipment 3 Machinery and equipment 3-35 . . Item 11 Page 65 of 126 City of Vernon Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023 54 Note 1 – Summary of Significant Accounting Policies (Continued) H. Capital Assets (Continued) Maintenance and repairs are charged to operations when incurred. Betterments and major improvements, which significantly increase values, change capacities or extend useful lives, are capitalized. Upon sale or retirement of capital assets, the cost and related accumulated depreciation are removed from the respective accounts and any resulting gain or loss is included in the changes in net financial position. The governmental fund financial statements do not present capital assets. Instead, capital assets purchases are reported as capital outlay expenditures or other functional expenditures such as public works. As such, capital assets are shown as a reconciling item in the Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position. The City established a threshold to recognize right‐to‐use assets, including lease assets or subscription-based information technology arrangement (“SBITA”) assets (“subscription assets”), in the government‐wide financial statements and proprietary fund financial statements for right-to-use asset over $15,000. Lease assets are recorded at the amount of the initial measurement of the lease liabilities and adjusted by any lease payments made to the lessor at or before the commencement of the lease term, less any lease incentives received from the lessor at or before the commencement of the lease term along with any initial direct costs that are ancillary charges necessary to place the lease assets into service. Lease assets are amortized using the straight-line method over the shorter of the lease term or the useful life of the underlying asset, unless the lease contains a purchase option that the City has determined is reasonably certain of being exercised. In this case, the lease asset is amortized over the useful life of the underlying asset. Subscription assets are recorded at the amount of the initial measurement of the SBITA liabilities (“subscription liabilities”) and adjusted by any subscription payments to the SBITA vendor at or before the commencement of the subscription term, less any incentives received from the SBITA vendor at or before the commencement of the subscription term along with subscription implementation costs. Subscription assets are amortized over the shorter of the subscription term or the useful life of the underlying IT assets. I. Deferred Outflows and Inflows of Resources The statement of net position reports separate sections for deferred outflows of resources and deferred inflows of resources, when applicable. Deferred Outflows of Resources represents consumption of net assets that applies to future periods. Deferred Inflows of Resources represents acquisition of net assets that applies to future periods. J. Unearned and Unavailable Revenue Unearned revenue is reported for transactions for which revenue has not yet been earned. Typical transactions recorded as unearned revenues in the government-wide financial statements are grant revenues received in advance. In the governmental fund financial statements, unavailable revenue is reported when transactions have not yet met the revenue recognition criteria based on the modified accrual basis of accounting. The City reports unavailable revenue when an asset is reported in governmental fund financial statements but the revenue is not available. . . Item 11 Page 66 of 126 City of Vernon Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023 55 Note 1 – Summary of Significant Accounting Policies (Continued) K. Compensated Absences Accumulated vacation is accrued when incurred in the government-wide, proprietary and fiduciary fund financial statements. A liability for accrued vacation is recorded in the governmental fund only to the extent that such amounts have matured (i.e., as a result of employee resignations and retirements). Upon termination of employment, the City will pay the employee all accumulated vacation leave at 100% of the employee’s base hourly rate. L. Claims Payable When it is probable that a claim liability has been incurred at year-end and the amount of the loss can be reasonably estimated, the City records the estimated loss, net of any insurance coverage, under its self- insurance program. Claims payable, which includes an estimate for incurred but not reported (“IBNR”) claims, is recorded in the General Fund. M. Lease Liabilities The City recognizes lease liabilities with an initial, individual value of $15,000 or more with a lease term greater than one year in the government-wide and proprietary fund financial statements. Variable payments based on future performance of the lessee or usage of the underlying asset are not included in the measurement of the lease liability. At the commencement of a lease, the City initially measures the lease liability at the present value of payments expected to be made during the lease term. Subsequently, the lease liability is reduced by the principal portion of lease payments made. Key estimates and judgments related to leases include how the City determines (1) the discount rate it uses to discount the expected lease payments to present value, (2) lease term, and (3) lease payments.  The City uses the interest rate charged by the lessor as the discount rate. When the interest rate charged by the lessor is not provided, the State generally uses its estimated incremental borrowing rate as the discount rate for leases.  The lease term includes the noncancellable period of the lease. Lease payments included in the measurement of the lease liability are composed of fixed payments and purchase option price that the City is reasonably certain to exercise. The City monitors changes in circumstances that would require a remeasurement of its lease and will remeasure any lease asset and liability if certain changes occur that are expected to significantly affect the amount of the lease liability. N. Subscription Liabilities The City recognizes subscription liabilities with an initial, individual value of $15,000 or more with a subscription term greater than one year in the government-wide and proprietary fund financial statements. Variable payments based on future performance of the City or usage of the underlying asset are not included in the measurement of the subscription liability. At the commencement of a lease, the City initially measures the subscription liability at the present value of payments expected to be made during the lease term. Subsequently, the subscription liability is reduced by the principal portion of subscription payments made. . . Item 11 Page 67 of 126 City of Vernon Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023 56 Note 1 – Summary of Significant Accounting Policies (Continued) N. Subscription Liabilities (Continued) Key estimates and judgments related to subscription include how the City determines (1) the discount rate it uses to discount the expected v payments to present value, (2) subscription term, and (3) subscription payments.  The City uses incremental borrowing rate provided by the financial institution at July 1, 2022 for existing subscription or the current rate at the time a new subscription is executed.  The subscription term includes the noncancellable period of the SBITA. Subscription payments included in the measurement of the subscription liability are composed of fixed payments. The City monitors changes in circumstances that would require a remeasurement of its SBITA and will remeasure any subscription asset and liability if certain changes occur that are expected to significantly affect the amount of the subscription liability. O. Long-Term Debt In the government-wide financial statements and proprietary fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the appropriate activities. Bonds payable are reported net of the applicable bond premium or discount. Debt issuance costs except for any portion related to prepaid insurance were recognized as expense in the period incurred. Premium or discount not considered as part of the reacquisition price was amortized over the life of the bond. The governmental fund financial statements do not present long-term liabilities. Consequently, long-term debt is shown as a reconciling item in the Reconciliation of the Governmental Funds Balance Sheet to the Government- Wide Statement of Net Position. P. Pensions For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the plans and additions to/deductions from the plans’ fiduciary net position have been determined on the same basis as they are reported by the plans. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with benefit terms. Investments are reported at fair value. General Fund is used to liquidate pension liabilities for governmental fund. The following timeframes are used for pension reporting: Valuation Date June 30, 2021 Measurement Date June 30, 2022 Measurement Period July 1, 2021 to June 30, 2022 Gains and losses related to changes in total pension liability and fiduciary net position are recognized in pension expense systematically over time. The first amortized amounts are recognized in pension expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to pensions and are to be recognized in future pension expense. The amortization period differs depending on the source of the gain or loss. The difference between projected and actual earnings is amortized straight-line over 5 years. All other amounts are amortized straight-line over the average expected remaining service lives of all members that are provided with benefits (active, inactive, and retired) as of the beginning of the measurement period. . . Item 11 Page 68 of 126 City of Vernon Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023 57 Note 1 – Summary of Significant Accounting Policies (Continued) Q. Other Postemployment Benefits (“OPEB”) For the purpose of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the City’s OPEB Plan and additions to/deductions from the OPEB Plan’s fiduciary net position have been determined on the same basis as they are reported by the Plan. For this purpose, the OPEB Plan recognizes benefit payments when due and payable in accordance with the benefit terms. Investments are reported at fair value, except for money market investments, which are reported at amortized cost. General Fund is typically used to liquidate OPEB liabilities for governmental funds. The following timeframes are reported OPEB reporting: Valuation Date June 30, 2022 Measurement Date June 30, 2022 Measurement Period July 1, 2021 to June 30, 2022 Gains and losses related to changes in total OPEB liability and fiduciary net position are recognized in OPEB expense systematically over time. The first amortized amounts are recognized in OPEB expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to OPEB and are to be recognized in future OPEB expense. The amortization period differs depending on the sources of gain or loss. The difference between projected and actual earnings is amortized on a straight-line basis over 5 years. All other amounts are amortized on a straight-line basis over the average expected remaining service lives of all members that are provided with benefits (active, inactive, and retired) at the beginning of the measurement period. R. Property Taxes The County of Los Angeles levies, collects and apportions property taxes for all taxing jurisdictions within the County. Property taxes are determined by applying approved rates to the properties’ assessed values. The County remits property taxes applicable to the City less an applicable to the City less an administrative fee throughout the year. Under California law, property taxes are assessed and collected by the counties for up to 1% of assessed property value, plus other increases approved by the voters. Property taxes collected are pooled and then allocated to the cities based on complex formulas. Property taxes are assessed, collected and allocated by Los Angeles County throughout the fiscal year. The following are key dates pertaining to property taxes: January 1 July 1 to June 30 November 1 and February 1 December 10 and April 10 Lien Date Levy Date Due Dates Delinquent Dates Property taxes receivable for the governmental fund types, which have been remitted within 60 days subsequent to year end, are considered measurable and available and recognized as revenues. All other property taxes are offset by deferred property tax inflows of resources and, accordingly, have not been recorded as revenue. Taxes are considered past due on the above delinquent dates, at which time the applicable property is subject to lien, and penalties and interest are assessed. . . Item 11 Page 69 of 126 City of Vernon Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023 58 Note 1 – Summary of Significant Accounting Policies (Continued) S. Net Position and Fund Balances In the Government-Wide Financial Statements and proprietary fund financial statements, net position is classified as follows: Net Investment in Capital Assets – This component of net position consists of capital assets, net of accumulated depreciation, reduced by the outstanding balances of retention payable and debt that are attributable to the acquisition, construction, or improvement of those assets, and related deferred outflows and inflows of resources, net of unspent debt proceeds. Restricted – This component of net position consists of restricted assets reduced by liabilities and deferred inflows of resources related to those assets. Unrestricted – This component of net position is the amount of the assets, deferred outflows of resources, liabilities, and deferred inflows of resources that are not included in the determination of net investment in capital assets or the restricted component of net position. When expenses are incurred for purposes for which both restricted and unrestricted components of net position are available, the City’s policy is to apply the restricted component of net position first, then the unrestricted component of net position as needed. In the Governmental Fund Financial Statements, fund balances are classified as follows: Nonspendable – Nonspendable fund balances are items that cannot be spent because they are not in spendable form, such as prepaid items and inventories, or items that are legally or contractually required to be maintained intact, such as principal of an endowment or revolving loan funds. Restricted – Restricted fund balances encompass the portion of net fund resources subject to externally enforceable legal restrictions. This includes externally imposed restrictions by creditors, such as through debt covenants, grantors, contributors, laws or regulations of other governments, as well as restrictions imposed by law through constitutional provisions or enabling legislation. Committed – Committed fund balances encompass the portion of net fund resources, the use of which is constrained by limitations that the government imposes upon itself at its highest level of decision making, normally the governing body, and that remain binding unless removed in the same manner. The City Council is considered the highest authority for the City. Adoption of a resolution by the City Council is required to commit resources or to rescind the commitment. Unassigned – This amount is for any portion of the fund balances that do not fall into one of the above categories. The General Fund is the only fund that reports a positive unassigned fund balance amount. In other governmental funds, it is not appropriate to report a positive unassigned fund balance amount. However, in governmental funds other than General Fund, if expenditures incurred for specific purposes exceed the amounts that are restricted, committed or assigned to those purposes, it may be necessary to report a negative unassigned fund balance in that fund. The City establishes encumbrance to record the amount of purchase orders, contracts, and other obligations, which have not yet been fulfilled, cancelled or discharged. Encumbrances outstanding at year end do not constitute expenditures or liabilities. Encumbrances outstanding at year-end are reported as a component of committed fund balance. Unencumbered appropriations lapse at year-end. . . Item 11 Page 70 of 126 City of Vernon Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023 59 Note 1 – Summary of Significant Accounting Policies (Continued) S. Net Position and Fund Balances (Continued) When expenditures are incurred for purposes for which all restricted, committed, assigned and unassigned fund balances are available, the City’s policy is to apply in the following order, except for instances wherein an ordinance specifies the fund balance:  Restricted  Committed  Assigned  Unassigned T. Use of Estimates The preparation of the basic financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. U. Implementation of New GASB Pronouncement In May 2020, GASB issued Statement No. 96, Subscription-Based Information Technology Arrangements (GASB Statement No. 96), to better meet the information needs of financial statement users by (a) establishing uniform accounting and financial reporting requirements for SBITAs; (b) improving the comparability of financial statements among governments that have entered into SBITAs; and (c) enhancing the understandability, reliability, relevance, and consistency of information about SBITAs. Under this Statement, a government is required to recognize a subscription liability and an intangible right-to-use subscription asset. The effective date of GASB Statement No. 96 is for fiscal years beginning after June 15, 2022. Implementation of this Statement resulted in restatement of beginning balance of capital assets (Note 5) and long-term debt liabilities (Note 6) at July 1, 2022. Note 2 – Cash and Investments The City maintains a cash and investment pool, which includes cash balances and authorized investments of all funds. Certain restricted funds which are held and invested by independent outside custodians through contractual agreements are not pooled. These restricted funds include cash and investments with fiscal agents. The City had the following cash and investments at June 30, 2023: Fiduciary Fund Governmental Business-Typ e Statement of Activities Activities Net Position Total Cash and investments 33,979,557$ 153,374,024$ 889,127$ 188,242,708$ Restricted cash and investments 2,824,858 36,427,615 3,590,059 42,842,532 Total cash and investments 36,804,415$ 189,801,639$ 4,479,186$ 231,085,240$ Government-Wide Statement of Net Position . . Item 11 Page 71 of 126 City of Vernon Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023 60 Note 2 – Cash and Investments (Continued) The City’s cash and investments at June 30, 2023, in more detail: Cash on hand 1,300$ Deposits with financial institution 55,483,350 Cash with fiscal agents 3,780,628 Investments 171,819,962 Total cash and investments 231,085,240$ A. Deposits The carrying amounts of the City’s demand deposits were $55,483,350 at June 30, 2023. Bank balances at that date were $56,320,937, the total amount of which was collateralized or insured with accounts held by the pledging financial institutions in the City’s name as discussed below. The California Government Code requires California banks and savings and loan associations to secure the City’s cash deposits by pledging securities as collateral. This Code states that collateral pledged in this manner shall have the effect of perfecting a security interest in such collateral superior to those of a general creditor. Thus, collateral for cash deposits is considered to be held in the City's name. The market value of pledged securities must equal at least 110% of the City's cash deposits. California law also allows institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the City’s total cash deposits. The City may waive collateral requirements for cash deposits, deposits, which are fully insured up to $250,000 by the Federal Deposit Insurance Corporation (“FDIC”). The City did not waive the collateral requirement for deposits insured by FDIC. The City follows the practice of pooling cash and investments of all funds, except for funds required to be held by fiscal agents under the provisions of bond indentures. Interest income earned on pooled cash and investments is allocated on an accounting period basis to the various funds based on the period-end cash and investment balances. Interest income from cash and investments with fiscal agents is credited directly to the related fund. . . Item 11 Page 72 of 126 City of Vernon Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023 61 Note 2 – Cash and Investments (Continued) B. Investments Under the provisions of the City’s investment policy, and in accordance with California Government Code, the following investments are authorized: Maximum Maximum Maximum Percentage Investments in Authorized Investment Type Maturity Allowed One Issuer United States Treasury Bills, Bonds and Notes 5 Years None None United States Government Sponsored Agency Securities 5 Years None None Local Agency Bonds 5 Years None None California State and Local Agency Bonds 5 Years 30%None Negotiable Certificates of Deposit 5 Years 30%None Corporate Notes 5 Years 30%None Non-Government issued Mortgage-backed pass-through securities, collateralized Mortgage obligations and Asset-backed securities 5 Years 20%None Repurchasement Agreement 1 year None None Banker's Acceptance Notes 180 Days 40%30% Commercial Paper 270 Days 25% 10% of the issuer outstanding paper Reverse Repurchase Agreements 92 Days 20%None Mutual Funds N/A 20% 10% of the issuer outstanding paper Local Agency Investment Fund (LAIF)N/A None None N/A - Not Applicable C. Local Agency Investment Fund (“LAIF”) The City is a participant in LAIF which is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. As of June 30, 2023, the City had $636,435 invested in LAIF. The fair value of the City’s portion in the pool is the same as the value of the pool shares and reported at amortized cost. D. Fair Value Measurement At June 30, 2023, investments are reported at fair value. The following table presents the fair value measurements of investments on a recurring basis and the levels with GASB 72 fair value hierarchy in which the fair value measurements fall at June 30, 2023: Quoted Prices in Active Significant Market for Identical Other Observable Investment Type Assets (Level 1) Inputs (Level 2) Uncategorized Total Local Agency Investment Fund -$ -$ 636,435$ 636,435$ Money Market Funds - - 105,047,087 105,047,087 US Treasury bills 29,402,775 - - 29,402,775 Negotiable Certificates of Deposit*- 496,620 - 496,620 Investment with fiscal agent: Money Market Funds - - 36,237,045 36,237,045 Total 29,402,775$ 496,620$ 141,920,567$ 171,819,962$ * Priced based on significant obervable inputs. Measurement Input . . Item 11 Page 73 of 126 City of Vernon Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023 62 Note 2 – Cash and Investments (Continued) E. Risk Disclosures Interest Rate Risk - As a means of limiting its exposure to fair value losses arising from rising interest rates, the City’s investment policy limits investments to a maximum maturity of five years. At June 30, 2023, the City had the following investment maturities: 1 Year 1 Year to 3 Years to Investment Type or Less 3 Years 5 Years Total Local Agency Investment Fund 636,435$ -$ -$ 636,435$ Money Market Funds 105,047,087 - - 105,047,087 US Treasury bills 29,402,775 - - 29,402,775 Negotiable Certificates of Deposit - 247,137 249,483 496,620 Investment with fiscal agent: Money Market Funds 36,237,045 - - 36,237,045 Total 171,323,342$ 247,137$ 249,483$ 171,819,962$ Remaining Maturity (In Months) Credit Risk – Generally, Credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the minimum rating required by (where applicable) the California Government Code, the City’s investment policy, or debt agreements, and the actual rating, by Standard and Poor’s and Moody’s at June 30, 2023 for each investment type: Fair Value Minimum Not Required at Legal to be Investment Type June 30, 2023 Rating AAA Other Rated Local Agency Investment Fund 636,435$ Not Rated -$ -$ 636,435$ Money Market Funds 105,047,087 AAA 105,047,087 - - US Treasury bills 29,402,775 N/A 29,402,775 - - Negotiable Certificates of Deposit 496,620 N/A - 496,620 - Investment with fiscal agent: Money Market Funds 36,237,045 N/A 36,237,045 - - Total 171,819,962$ 170,686,907$ 496,620$ 636,435$ N/A - Not Required Concentration of Credit Risk The investment policy of the City contains no limitations on the amount that can be invested in any one issuer excluding a 10% limitation on commercial papers, mutual funds, and money market mutual funds and a 30% limitation on banker’ acceptances. The City’s investment policy places no limit on the amount of debt proceeds held by a bond trustee that the trustee may invest in one issuer that is governed by the provisions of debt agreements of the City, rather than the general provisions of the California Government Code or the City’s investment policy. Custodial Credit Risk The Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover deposits or will not be able to recover collateral securities that are in the possession of a third party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty to a transaction, a government will not be able to recover the value of investment or collateral securities that are in the possession of the third party. At June 30, 2023, none of the City’s deposits or investments were exposed to custodial credit risk. . . Item 11 Page 74 of 126 City of Vernon Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023 63 Note 3 – Lease Receivables Lease receivable consist of agreements with others for the right–to–use of the underlying assets for land owned by the City. The lease expires in January 2061. The incremental borrowing rate used was 2.01%. For the year ended June 30, 2023, the City recognized $98,569 in lease revenue and $76,258 in interest revenue for General Fund. The outstanding receivables are in the amounts of $3,769,599 for General Fund. The future required payments for these leases, including interest, are as follows: Year Ending June 30,Principal Interest Total 2024 68,058$ 74,905$ 142,963$ 2025 69,439 73,524 142,963 2026 70,847 72,115 142,962 2027 72,284 70,678 142,962 2028 73,751 69,212 142,963 2029-2033 391,812 323,001 714,813 2034-2038 433,200 281,614 714,814 2039-2043 478,959 235,855 714,814 2044-2048 529,552 185,262 714,814 2049-2053 585,489 129,325 714,814 2054-2058 647,334 67,479 714,813 2059-2061 348,874 8,532 357,406 Total 3,769,599$ 1,591,502$ 5,361,101$ Governmental Activities Note 4 – Interfund Transactions A. Due From/To Other Funds At June 30, 2023, the City had the following due from/to other funds: Governmental Fund Water Fiber Optics Due to Other Funds General Fund Enterprise Fund Enterprise Fund Total Governmental Fund General Fund -$ -$ 36$ 36$ Proprietary Fund Electric Enterprise Fund 2,934,866 18,247 - 2,953,113 Water Enterprise Fund 110,329 - - 110,329 Total 3,045,195$ 18,247$ 36$ 3,063,478$ Proprietary Fund Due From Other Funds The interfund balances resulted from borrowing of cash for temporary purposes. All balances are expected to be reimbursed within the subsequent year. . . Item 11 Page 75 of 126 City of Vernon Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023 64 Note 4 – Interfund Transactions (Continued) B. Advances To/From Other Funds At June 30, 2023, the City had the following advances: Gas Fiber Optics Advances to Other Funds Enterprise Fund Enterprise Fund Total Proprietary Fund Electric Enterprise Fund 29,405,104$ 4,521,458$ 33,926,562$ Proprietary Fund Advances from Other Funds The advances between the Electric Enterprise Fund and the Gas and Fiber Optics Enterprise Funds do not accrue interest due to the nature of the City’s operational relationship and capital projects funded by the Electric Enterprise Fund that benefit all City operations. On November 6, 2012, the City adopted Resolution No. 2012-215 extending the repayment term of the advance from 15 months to a period of over 10 years. C. Interfund Transfers For the year ended June 30, 2023, the Electric Enterprise Fund transferred $491,542 to the General Fund for the reimbursement of general governmental services. . . Item 11 Page 76 of 126 City of Vernon Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023 65 Note 5 – Capital Assets A. Governmental Activities A summary of changes in the capital assets for the governmental activities for the year ended June 30, 2023 is as follows: Balance July 1, 2022 Balance (As Restated) Additions Deletions Transfers June 30, 2023 Capital assets, not being depreciated: Land 63,569,108$ -$ -$ -$ 63,569,108$ Construction in progress 2,231,978 614,699 - - 2,846,677 Total capital assets, not being depreciated 65,801,086 614,699 - - 66,415,785 Capital assets, being depreciated: Buildings and improvements 16,772,594 188,238 - - 16,960,832 Improvements Other Than Buildings 12,209,716 70,734 - - 12,280,450 Machinery and equipment 16,905,083 1,652,101 (260,619) - 18,296,565 Infrastructure 159,076,637 1,544,864 - - 160,621,501 Total capital assets, being depreciated 204,964,030 3,455,937 (260,619) - 208,159,348 Less accumulated depreciation for: Buildings and improvements (9,605,068) (407,206) - - (10,012,274) Improvements Other Than Buildings (6,577,885) (374,996) - - (6,952,881) Machinery and equipment (12,817,759) (930,134) 260,619 - (13,487,274) Infrastructure (78,702,463) (3,632,162) - - (82,334,625) Total accumulated depreciation (107,703,175) (5,344,498) 260,619 - (112,787,054) Total capital assets, being depreciated, net 97,260,855 (1,888,561) - - 95,372,294 Intangible assets, being amortized Right-to-use lease assets 56,857 - - - 56,857 Right-to-use subscription assets 67,469 538,544 - - 606,013 Total intangible assets, being amortized 124,326 538,544 - - 662,870 Less accumulated amortization for: Right-to-use lease assets (25,270) (25,270) - - (50,540) Right-to-use subscription assets - (138,167) - - (138,167) Total accumulated amortization (25,270) (163,437) - - (188,707) Total intangible assets, being amortized, net 99,056 375,107 - - 474,163 Governmental activities capital assets, net 163,160,997$ (898,755)$ -$ -$ 162,262,242$ Depreciation and amortization expense was charged to functions of the governmental activities for the year ended June 30, 2023 as follows: General government 638,571$ Public safety 262,111 Public works 4,607,253 Total depreciation and amortization expense 5,507,935$ . . Item 11 Page 77 of 126 City of Vernon Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023 66 Note 5 – Capital Assets (Continued) B. Business-Type Activities A summary of changes in the capital assets for the business-type activities for the year ended June 30, 2023 is as follows: Balance Balance July 1, 2022 Additions Deletions Transfers June 30, 2023 Capital assets, not being depreciated: Electric utility - Land 13,193,594$ -$ -$ -$ 13,193,594$ Water utility - Water 467,640 - - - 467,640 Electric utility - Intangibles - Environmental credits 4,774,583 160,763 (884,702) - 4,050,644 Electric utility - Construction in progress 45,453,774 1,287,047 (137,328) (9,768) 46,593,725 Water utility - Construction in progress 6,914,299 5,933,375 - (2,204,043) 10,643,631 Fiber Optic utility - Construction in progress - 266,172 - - 266,172 Total capital assets, not being depreciated 70,803,890 7,647,357 (1,022,030) (2,213,811) 75,215,406 Capital assets, being depreciated: Electric utility - Production plant 212,362,988 458,731 - - 212,821,719 Electric utility - Transmission plant 3,616,464 - - - 3,616,464 Electric utility - Distribution plant 257,051,650 22,548,011 - 9,768 279,609,429 Electric utility - General plant 9,754,409 305,165 (98,179) - 9,961,395 Water utility plant 23,730,271 787,837 (14,782) 2,204,043 26,707,369 Gas utility plant 27,200,594 - (14,803) - 27,185,791 Fiber Optic utility plant 3,756,609 159,930 - - 3,916,539 Total capital assets, being depreciated 537,472,985 24,259,674 (127,764) 2,213,811 563,818,706 Less accumulated depreciation for: Electric utility - Production plant (19,391,536) (14,276,852) - - (33,668,388) Electric utility - Transmission plant (2,443,189) (77,553) - - (2,520,742) Electric utility - Distribution plant (92,171,698) (7,999,264) - - (100,170,962) Electric utility - General plant (6,483,727) (381,141) 78,757 - (6,786,111) Water utility plant (14,844,199) (575,512) 14,782 - (15,404,929) Gas utility plant (11,821,433) (706,361) 14,803 - (12,512,991) Fiber Optic utility plant (2,693,449) (210,161) - - (2,903,610) Total accumulated depreciation (149,849,231) (24,226,844) 108,342 - (173,967,733) Total capital assets, being depreciated, net 387,623,754 32,830 (19,422) 2,213,811 389,850,973 Business-type activities capital assets, net 458,427,644$ 7,680,187$ (1,041,452)$ -$ 465,066,379$ Depreciation expense was charged to functions of the business-type activities for the year ended June 30, 2023 as follows: Electric Fund 22,734,810$ Water Fund 575,512 Gas Fund 706,361 Fiber Optic Fund 210,161 Total depreciation and amortization expense 24,226,844$ . . Item 11 Page 78 of 126 City of Vernon Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023 67 Note 6 – Long-Term Liabilities A. Governmental Activities A summary of changes in long-term liabilities for governmental activities for the year ended June 30, 2023 is as follows: Balance July 1, 2022 Balance Due within Due in More (As Restated) Additions Deletions June 30, 2023 One Year Than One Year Governmental Activities: Lease liabilities 31,660$ -$ (25,313)$ 6,347$ 6,347$ -$ Subscription liabilities 67,469 538,544 (200,307) 405,706 196,027 209,679 Compensated absences 2,673,930 1,512,554 (1,400,011) 2,786,473 928,824 1,857,649 Claims and judgments 4,940,732 1,529,740 (2,523,658) 3,946,814 1,635,206 2,311,608 Total governmental activities 7,713,791$ 3,580,838$ (4,149,289)$ 7,145,340$ 2,766,404$ 4,378,936$ Lease liabilities On July 17, 2021, the City entered into a lease agreement with MRC Smart Technology Solutions for equipment in the amount of $290,000. The lease agreement has 36 payments of $2,116 with an interest rate of 0.46%. The future annual lease payments are as follows: Year Ending June 30, Principal Interest Total 2024 6,347$ 3$ 6,350$ Subscription liabilities The City entered into subscription agreements with various vendors for software. The agreements expire from March 34, 2025 to June 30, 2026 with interest rates range from 2.36% to 3.38%. The future annual subscription payments are as follows: Year Ending June 30, Principal Interest Total 2024 196,027$ 12,101$ 208,128$ 2025 202,155 6,514 208,669 2026 7,524 188 7,712 Total 405,706$ 18,803$ 424,509$ . . Item 11 Page 79 of 126 City of Vernon Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023 68 Note 6 – Long-Term Liabilities (Continued) A. Governmental Activities (Continued) Compensated Absences The compensated absences are liquidated by the General Fund. At June 30, 2023, compensated absences were in the amount of $2,786,473. Refer to note 7 for more information of these liabilities. Claims and Judgments Refer to Note 8 for more information on claims and judgments. B. Business-Type Activities The following is a summary of changes in long-term liabilities for business-type activities for the year ended June 30, 2023: Balance Balance Due within Due in More July 1, 2022 Additions Deletions June 30, 2023 One Year Than One Year Business-Type activities Public Borrowings: Revenue Bonds: 2008 Taxable Revenue Bonds - Series A - Electric 37,895,000$ -$ (1,025,000)$ 36,870,000$ 1,120,000$ 35,750,000$ 2012 Taxable Revenue Bonds - Series B - Electric 11,505,000 - (6,165,000) 5,340,000 1,170,000 4,170,000 2015 Taxable Revenue Bonds - Series A - Electric 111,720,000 - (22,540,000) 89,180,000 23,520,000 65,660,000 2020 Taxable Revenue Bonds - Series A - Electric 19,305,000 - - 19,305,000 - 19,305,000 2021 Taxable Revenue Bonds - Series A - Electric 173,815,000 - (20,380,000) 153,435,000 21,335,000 132,100,000 2022 Taxable Revenue Bonds - Series A - Electric 52,070,000 - - 52,070,000 4,690,000 47,380,000 2020 Taxable Revenue Bonds - Series A - Water 14,600,000 - (250,000) 14,350,000 265,000 14,085,000 Total Revenue Bonds 420,910,000 - (50,360,000) 370,550,000 52,100,000 318,450,000 Unamortized Premiums/(Discounts): 2008 Taxable Revenue Bonds - Series A - Electric (2,093) - 131 (1,962) - (1,962) 2012 Taxable Revenue Bonds - Series B - Electric (69,987) - 16,797 (53,190) - (53,190) 2015 Taxable Revenue Bonds - Series A - Electric (1,096,863) - 355,739 (741,124) - (741,124) 2020 Taxable Revenue Bonds - Series A - Electric 6,615,877 - (438,622) 6,177,255 - 6,177,255 2021 Taxable Revenue Bonds - Series A - Electric 25,999,586 - (6,550,066) 19,449,520 - 19,449,520 2022 Taxable Revenue Bonds - Series A - Electric 10,179,957 - (732,918) 9,447,039 - 9,447,039 2020 Taxable Revenue Bonds - Series A - Water 535,833 - (19,080) 516,753 - 516,753 Total Unamortized Premiums/(Discounts) 42,162,310 - (7,368,019) 34,794,291 - 34,794,291 Total Public Offering 463,072,310 - (57,728,019) 405,344,291 52,100,000 353,244,291 Direct Borrowing: Water Replenishment District Note Payable 1,220,930 - (139,535) 1,081,395 139,535 941,860 Total Direct Borrowing 1,220,930 - (139,535) 1,081,395 139,535 941,860 Compensated absences 1,218,405 904,156 (972,577) 1,149,984 383,328 766,656 Total business-Type activities 465,511,645$ 904,156$ (58,840,131)$ 407,575,670$ 52,622,863$ 354,952,807$ . . Item 11 Page 80 of 126 City of Vernon Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023 69 Note 6 – Long-Term Liabilities (Continued) B. Business-Type Activities (Continued) $43,765,000 Electric System Revenue Bonds (2008 Taxable Series A) The bonds are special obligation bonds which are secured by an irrevocable pledge of electric revenues payable to bondholders. Under the Bond Indenture of Trust, interest and principal on the bonds are payable from Net Revenues (or Revenues less Operation and Maintenance Expenses) and/or amounts in the Light and Power Enterprise (as those terms are defined in the Indenture of Trust). The City of Vernon Electric System Revenue Bonds, 2008 Taxable Series A were issued to provide funds to (i) finance the cost of certain capital improvements to the City’s Electric System, (ii) fund a deposit to the Debt Service Reserve Fund, and (iii) to pay costs of issuance of the 2008 Bonds. The total unpaid balance as of June 30, 2023, was $36,870,000. The future annual debt service requirements for the Taxable Revenue Bonds, Series 2008A-T are as followed: Year Ending June 30, Principal Interest Total 2024 1,120,000$ 3,119,029$ 4,239,029$ 2025 1,220,000 3,018,526 4,238,526 2026 1,330,000 2,909,004 4,239,004 2027 1,450,000 2,789,603 4,239,603 2028 1,580,000 2,659,464 4,239,464 2029-2033 10,290,000 10,899,422 21,189,422 2034-2038 15,815,000 5,374,978 21,189,978 2039 4,065,000 174,592 4,239,592 Total 36,870,000$ 30,944,618$ 67,814,618$ $35,100,000 Electric System Revenue Bonds (2012 Taxable Series B) On January 10, 2012, the City issued Electric System Revenue Bonds, 2012 Series B, in the amount of $35,100,000. During the fiscal year ended 2022, a portion of the Electric System Revenue Bonds were refunded with the issuance of the Electric System Revenue Bonds 2022 Series A. The bonds are special obligation bonds which are secured by an irrevocable pledge of electric revenues payable to bondholders. Under the Bond Indenture of Trust, interest and principal on the bonds are payable from Net Revenues (or Revenues less Operation and Maintenance Expenses) and/or amounts in the Light and Power Enterprise (as those terms are defined in the Indenture of Trust). The City of Vernon Electric System Revenue Bonds, 2012 Taxable Series B were issued to provide funds to (i) refund the $28,680,000 aggregate principal amount of 2009 Bonds maturing on August 1, 2012, (ii) to pay a portion of the Costs of the 2012 Project, and (iii) to pay costs of issuance of the 2012 Taxable Series B Bonds. The total unpaid balance as of June 30, 2023, was $5,340,000. The future annual debt service requirements for the Taxable Revenue Bonds, Series 2012B-T are as followed: Year Ending June 30, Principal Interest Total 2024 1,170,000$ 302,613$ 1,472,613$ 2025 1,305,000 225,269 1,530,269 2026 1,390,000 140,181 1,530,181 2027 1,475,000 47,938 1,522,938 Total 5,340,000$ 716,001$ 6,056,001$ . . Item 11 Page 81 of 126 City of Vernon Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023 70 Note 6 – Long-Term Liabilities (Continued) B. Business-Type Activities (Continued) $111,720,000 Electric System Revenue Bonds (2015 Taxable Series A) The bonds are special obligation bonds which are secured by an irrevocable pledge of electric revenues payable to bondholders. Under the Bond Indenture of Trust, interest and principal on the bonds are payable from Net Revenues (or Revenues less Operation and Maintenance Expenses) and/or amounts in the Light and Power Enterprise (as those terms are defined in the Indenture of Trust). The City of Vernon Electric System Revenue Bonds, 2015 Taxable Series A were issued to provide funds to (i) refund a portion of the Outstanding Electric System Revenue Bonds, 2009 Series A; (ii) finance the Costs of certain Capital Improvements to the City’s Electric System by reimbursing the Electric System for the prior payment of such Costs from the Light and Power Fund; (iii) fund a deposit to the Debt Service Reserve Fund; and (iv) pay costs of issuance of the 2015 Bonds. The total unpaid balance as of June 30, 2023, was $89,180,000. The future annual debt service requirements for the Taxable Revenue Bonds, Series 2015A-T are as followed: Year Ending June 30, Principal Interest Total 2024 23,520,000$ 3,596,938$ 27,116,938$ 2025 24,585,000 2,530,618 27,115,618 2026 25,780,000 1,341,193 27,121,193 2027 15,295,000 370,904 15,665,904 89,180,000$ 7,839,653$ 97,019,653$ $71,990,000 Electric System Revenue Bonds (2020 Series A) The bonds are special obligation bonds which are secured by an irrevocable pledge of electric revenues payable to bondholders. Under the Bond Indenture of Trust, interest and principal on the bonds are payable from Net Revenues (or Revenues less Operation and Maintenance Expenses) and/or amounts in the Light and Power Enterprise (as those terms are defined in the Indenture of Trust). The City of Vernon Electric System Revenue Bonds, 2020 Series A were issued to provide funds to (i) to finance the acquisition and construction of certain capital improvements to the Electric System of the City, (ii) to refund all the City’s outstanding Electric System Revenue Bonds, 2009 Series A, and (iii) to pay costs of issuance of the 2020 Bonds. The total unpaid balance as of June 30, 2023, was $19,305,000. The future annual debt service requirements for the Taxable Revenue Bonds, Series 2020A-T are as followed: Year Ending June 30, Principal Interest Total 2024 -$ 965,250$ 965,250$ 2025 - 965,250 965,250 2026 - 965,250 965,250 2027 - 965,250 965,250 2028 - 965,250 965,250 2029-2033 8,450,000 3,812,250 12,262,250 2034-2038 10,855,000 1,411,125 12,266,125 Total 19,305,000$ 10,049,625$ 29,354,625$ . . Item 11 Page 82 of 126 City of Vernon Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023 71 Note 6 – Long-Term Liabilities (Continued) B. Business-Type Activities (Continued) $183,815,000 Electric System Revenue Bonds (2021 Series A) In December 2021, the City of Vernon issued 2021A Electric System Revenue Bonds in the amount of $183,815,000 (i) to pay the costs of the acquisition by the City of Vernon of a 134-megawatt natural gas-fired generating facility located within the City limits on land owned by the City, together with certain related electrical interconnection facilities and other assets, property, and contractual rights; (ii) to fund a deposit to the Debt Service Reserve Fund in satisfaction of the Debt Service Reserve Requirement; and (iii) to pay costs of issuance of the 2021 bonds. The bonds bear interest rates between 4.00%-5.00% that is payable on a semi-annual basis on April 1 and October 1, commencing April 1, 2022. The bonds are special obligation bonds which are secured by an irrevocable pledge of electric revenues payable to bondholders. The total unpaid balance as of June 30, 2023, was $153,435,000. The future annual debt service requirements for the Taxable Revenue Bonds, Series 2021A-T are as followed: Year Ending June 30, Principal Interest Total 2024 21,335,000$ 7,405,125$ 28,740,125$ 2025 22,400,000 6,325,000 28,725,000 2026 23,530,000 5,190,875 28,720,875 2027 31,255,000 3,917,875 35,172,875 2028 54,915,000 2,059,375 56,974,375 Total 153,435,000$ 24,898,250$ 178,333,250$ $52,070,000 Electric System Revenue Bonds (2022 Series A) In December 2021, the City of Vernon issued 2022A Electric System Revenue Bonds in the amount of $52,070,000 to refund the 2012A Electric System Revenue Bonds, a portion of the 2012B Electric Revenue Bonds, and provide for the costs of issuing the bonds. Under the Bond Indenture of Trust, interest and principal on the bonds are payable from Net Revenues (or Revenues less Operation and Maintenance Expenses) and/or amounts in the Light and Power Enterprise (as those terms are defined in the Indenture of Trust). The City of Vernon Electric System Revenue Bonds, 2022 Series A were issued to (i) refund and defease all of the City’s outstanding Electric System Revenue Bonds, 2012 Series A and a portion of the City’s outstanding Electric System Revenue bonds, 2012 Taxable Series B and (ii) pay costs of issuance of the 2022 Bonds. The bonds bear interest rates between 4.00%-5.00% that is payable on a semi-annual basis beginning February 1 and August 1, commencing on August 1, 2022. The bonds are special obligation bonds which are secured by an irrevocable pledge of electric revenues payable to bondholders. The total unpaid balance as of June 30, 2023, was $52,070,000. . . Item 11 Page 83 of 126 City of Vernon Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023 72 Note 6 – Long-Term Liabilities (Continued) B.Business-Type Activities (Continued) $52,070,000 Electric System Revenue Bonds (2022 Series A) (Continued) The future annual debt service requirements for the Taxable Revenue Bonds, Series 2022A-T are as followed: Year Ending June 30, Principal Interest Total 2024 4,690,000$ 2,486,250$ 7,176,250$ 2025 4,885,000 2,246,875 7,131,875 2026 5,130,000 1,996,500 7,126,500 2027 5,405,000 1,733,125 7,138,125 2028 950,000 1,574,250 2,524,250 2029-2033 5,540,000 7,087,250 12,627,250 2034-2038 7,110,000 5,513,750 12,623,750 2039-2042 18,360,000 2,157,750 20,517,750 Total 52,070,000$ 24,795,750$ 76,865,750$ $14,840,000 Water System Revenue Bonds (2020 Series A) The bonds are special obligation bonds which are secured by an irrevocable pledge of water revenues payable to bondholders. Under the Indenture of Trust dated May 6, 2020, interest and principal on the bonds are payable from Net Revenues (or Revenues less Operation and Maintenance Expenses) and/or amounts in the Water Enterprise (as those terms are defined in the Indenture of Trust). The total unpaid balance as of June 30, 2023, was $14,350,000. The future annual debt service requirements for the Taxable Revenue Bonds, Series 2020A-T are as followed: Year Ending June 30, Principal Interest Total 2024 265,000$ 562,850$ 827,850$ 2025 275,000 549,350 824,350 2026 -542,475 542,475 2027 -542,475 542,475 2028 -542,475 542,475 2029-2033 1,985,000 2,464,250 4,449,250 2034-2038 2,180,000 1,943,625 4,123,625 2039-2043 2,680,000 1,445,000 4,125,000 2044-2048 3,180,000 940,625 4,120,625 2049-2051 3,785,000 331,188 4,116,188 Total 14,350,000$ 9,864,313$ 24,214,313$ . . Item 11 Page 84 of 126 City of Vernon Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023 73 Note 6 – Long-Term Liabilities (Continued) B. Business-Type Activities (Continued) Water Replenishment District Note Payable – Direct Borrowing In May 2019, the City entered into an agreement with Water Replenishment District of Southern California (WRD) for assistance with the construction of a new groundwater well or rehabilitation of an existing groundwater well. The promissory note is unsecured and has no interest basis for an amount not to exceed $1,500,000. As of June 30, 2022, WRD has disbursed all of the funds under the agreement to the City. The note is payable in quarterly principal payments commencing September 1, 2020, in an amount which, together with all quarterly payments, will be sufficient to fully amortize the principal balance of the note by the maturity date of April 1, 2031. The total unpaid balance as of June 30, 2023, was $1,081,395. Upon an event of default, WRD may declare any or all of the outstanding and unpaid principal balance immediately due and payable, without presentment, demand, protest, notice of protest, notice of acceleration or of intention to accelerate or any other notice, declaration or act of any kind, all of which are hereby expressly waived by the City. The future annual debt service requirements are as follows: Year Ending June 30, Principal Interest Total 2024 139,535$ -$ 139,535$ 2025 139,535 - 139,535 2026 139,535 - 139,535 2027 139,535 - 139,535 2028 139,535 - 139,535 2029-2031 383,720 - 383,720 Total 1,081,395$ -$ 1,081,395$ Compensated Absences The balance outstanding at June 30, 2023, was $1,149,984. See note 7 for details. C. Fiduciary Funds The following long-term obligations were approved by California State Department of Finance as enforceable obligations and were considered as accounting liabilities in accordance with GAAP. Balance Balance Due within Due in More July 1, 2022 Additions Deletions June 30, 2023 One Year Than One Year Fiduciary Activities: Public Offering 2005 Industrial Redevelopement Project Tax Allocation Bonds 30,785,000$ -$ (30,785,000)$ -$ -$ -$ 2011 Industrial Redevelopement ProjectTax Allocation Bonds 8,130,000 - (8,130,000) - - - 2022 Tax Allocation Refunding Bonds - 21,330,000 - 21,330,000 3,165,000 18,165,000 Total fiduciary activities 38,915,000$ 21,330,000$ (38,915,000)$ 21,330,000$ 3,165,000$ 18,165,000$ . . Item 11 Page 85 of 126 City of Vernon Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023 74 Note 6 – Long-Term Liabilities (Continued) C.Fiduciary Funds (Continued) 2005 Industrial redevelopment Project Tax Allocation Bonds In October 2005, the Redevelopment Agency of the City issued the 2005 Industrial redevelopment Project Tax Allocation Bonds in the amount of $49,420,000. The bonds are special obligation bonds and are payable from the pledged tax revenues and amounts on deposit in the reserve account. The bonds were issued to (i) finance various redevelopment projects, in or benefiting the Agency’s Industrial Redevelopment Project area, (ii) fund the reserve requirement for the Series 2005 Bonds, and (iii) pay costs of issuance of the Series 2005 Bonds. Debt service was calculated at the actual fixed rates of the coupons ranging from 3.25% to 5.25%. In July 2022, the 2005 Industrial redevelopment Project Tax Allocation Bonds were current refunded by 2022 Taxable Tax Allocation Refunding Bonds and fully redeemed on July 25, 2022. 2011 Industrial redevelopment Project Tax Allocation Bonds In March 2011, the Redevelopment Agency of the City issued the 2011 Industrial redevelopment Project Tax Allocation Bonds in the amount of $19,490,000. The bonds are special obligation bonds and are payable from the pledged tax revenues and amounts on deposit in the reserve account. The bonds were issued to (i) finance the acquisition of one or more parcels of land, and certain redevelopment projects, in or benefiting the Agency’s Industrial Redevelopment Projects, (ii) fund a deposit to the reserve account sufficient to meet the reserve requirement, and (iii) pay costs of issuance of the Series 2011 Bonds. Debt service was calculated at the actual fixed rates of the coupons ranging from 3.00% to 9.25%. In July 2022, the 2011 Industrial redevelopment Project Tax Allocation Bonds were current refunded by 2022 Taxable Tax Allocation Refunding Bonds and fully redeemed on July 25, 2022. 2022 Taxable Tax Allocation Refunding Bonds In July 2022, the Successor Agency of the former Redevelopment Agency of the City issued the 2022 Taxable Tax Allocation Refunding Bonds in the amount of $21,330,000 to current refund the City’s 2005 Industrial Redevelopment Project Tax Allocation Bonds and 2011 Industrial Redevelopment Project Tax Allocation Bonds. The current refunding resulted in an saving in debt service payments of $11,666,099 and economic gain in the of $2,387,082. The bonds bear interest at rates between 3.489% and 4.431%. Interest on the bonds is payable annually on each March 1 and September 1. Principal payments are due in annual installments ranging from $3,165,000 to $4,030,000, commencing September 1, 2023 through September 1, 2028. The bonds are not subject to redemption prior to maturity. The refunding revenue bonds debt service payments will be made from the debt service funds. The annual debt service requirements for the Taxable Tax Allocation Refunding Bonds are as follows: Year Ending June 30, Principal Interest Total 2024 3,165,000$ 794,903$ 3,959,903$ 2025 3,445,000 677,008 4,122,008 2026 3,625,000 543,802 4,168,802 2027 3,820,000 395,560 4,215,560 2028 4,030,000 230,814 4,260,814 2029 3,245,000 71,893 3,316,893 Total 21,330,000$ 2,713,980$ 24,043,980$ . . Item 11 Page 86 of 126 City of Vernon Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023 75 Note 6 – Long-Term Liabilities (Continued) C. Fiduciary Funds (Continued) 2022 Taxable Tax Allocation Refunding Bonds (Continued) The 2022 Taxable Tax Allocation Refunding Bonds are secured by the Pledged Tax Revenues deposited in the Redevelopment Property Tax Trust Fund. The pledged tax revenues are to be used solely for the repayment of principal and interest on the bonds until they are paid in full through September 1, 2028 and are not available for other purposes during the duration that the bonds are outstanding. The total principal and interest remaining is approximately $24,043,980. Management expects that pledged tax revenues will be sufficient to make future principal and interest payments on the bonds. D. Expense Stabilization Fund The City maintains an Expense Stabilization Fund held by a Trustee in such amounts, at such times and from sources as shall be determined by the City in its sole discretion. In the event of default under the Indenture shall have occurred and is continuing, the Trustee shall transfer all moneys in the fund to the debt service funds as provided in the Indenture. Moneys on deposit in this fund may be withdrawn by the City at any time when no event of default exists under the Indenture. As at June 30, 2023, this fund has a balance of $40,161,516. E. Right to Accelerate Upon Default Notwithstanding anything contrary in the Indenture or in the Bonds, upon the occurrence of an Event of Default, the Trustee may, with the consent of each Credit Provider whose consent is required by a Supplemental Indenture or a Credit Support Agreement, and shall, at the direction of the Owners of a majority in principal amount of Outstanding Bonds (other than Bonds owned by or on behalf of the City) by written notice to the City, declare the principal of the Outstanding Bonds and the interest thereon to be immediately due and payable, whereupon such principal and interest shall, without further action, become and be immediately due and payable. F. Credit Rating As of June 30 , 2023, the ratings on all Electric System Revenue Bonds is Baa1 stable by Moody’s and BBB+ stable by S&P and the ratings on all Water System Revenue Bonds is A- by S&P. Note 7 – Compensated Absences Under certain circumstances and accordingly to the negotiated labor agreements, City employees are allowed to accumulate annual leave. The annual leave amount is accrued and accounted for as compensated absences in the government-wide and proprietary fund statements. The following is a summary of compensated absences payable transactions for the year ended June 30 2023: Balance Balance Due within Due in More July 1, 2022 Additions Deletions June 30, 2023 One Year Than One Year Governmental activities: Compensated absences 2,673,930$ 1,512,554$ (1,400,011)$ 2,786,473$ 928,824$ 1,857,649$ Business-type activities Compensated absences 1,218,405$ 904,156$ (972,577)$ 1,149,984$ 383,328$ 766,656$ . . Item 11 Page 87 of 126 City of Vernon Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023 76 Note 7 – Compensated Absences (Continued) The General Fund is used to liquidate the compensated absences for governmental activities. The Enterprise Funds are used to liquidate the compensated absences for business-type activities. Note 8 – Risk Management The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets, errors, and omissions; injuries to employees, and natural disasters. The City utilizes insurance policy(s) to transfer these risks. Each policy has either self-insured retention or deductible, which are parts of our Risk Financing Program. There have been no significant settlements or reductions in insurance coverage during the past three fiscal years. Starting in Fiscal 2010, the City chose to establish the Risk Financing Program in the General Fund, whereby assets are set aside for claim-litigation settlements associated with the above-mentioned risks up to their self-insured retentions or policy deductibles. Athens Administrators Inc. is the City’s Third-Party Administrator for workers’ compensation program and they provide basic services for general liability claims and litigation. A summary of the insurance limits for fiscal year 2023 are as follows: Insurance Type Program Limits Deductible/SIR (Self-Insured Retention) 1st Excess Liability $5,000,000 $2 Million $3 Million Law Enforcement 2nd Excess Liability $5,000,000 $5,000,000 3rd Excess Liability $5,000,000 $10,000,000 4th Excess Liability $5,000,000 $15,000,000 Excess Workers Compensation $50,000,000 $1,000,000 $1.5 Million Presumptive Loss Property - Power Generating $100,000,000 Various Property - Residential $7,950,653 $2,500 Property - Municipal $59,614,930 $25,000 Commercial Property/EQ and FL $50,000,000 - Government Crime $1,000,000 $25,000 Premise Pollution/Environmental Impairment $5,000,000 $25,000 $5,000,000 per Claim $50,000 Utility Locs. $100,000 Natural Gas Pipeline Cyber Liability $5,000,000 $100,000 Auto Physical Damage $10,000,000 $5,000 Residential Property Insurance $7,950,653 $2,500 Terrorism $100 Million Property Terrorism $0 $5 Million Terrorism Liability $5 Million Active Shooter Special Events $2,000,000 $1,000,000 Each Occurrence Changes in the balances of claims liabilities during the past three years are as follows: Current Year Current Year Balance at Claims and Changes Claim Balance at Year Ended July 1 in Estimates Payments June 30 June 30, 2021 3,840,080$ 836,537$ (1,267,245)$ 3,409,372$ June 30, 2022 3,409,372 2,831,928 (1,300,568) 4,940,732 June 30, 2023 4,940,732 1,529,740 (2,523,658) 3,946,814 . . Item 11 Page 88 of 126 City of Vernon Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023 77 Note 9 – Pension Plan A. General Information about the Pension Plan On October 1, 2020, the City transferred its fire department operations to Los Angeles County, California. The City's full-time safety (police and fire personnel) employees were converted from the City's agent multiple- employer defined benefit pension plan to a cost-sharing defined benefit pension plan during the fiscal year ended June 30, 2021. See Note 12 for further information. Plan Description The City contribution to the California Public Employees Retirement System (“CalPERS”), an agent multiple- employer defined benefit pension plan for miscellaneous employees and a cost-sharing multiple-employer defined benefit plan for safety employees. CalPERS acts as a common investment and administrative agent for participating public entities within the State of California. Benefit provisions and all other requirements are established by state statute and City ordinance. A full description of the pension plan regarding number of employees covered, benefit provisions, assumptions (for funding, but not accounting purposes), and membership information are listed in the June 30, 2021 Annual Actuarial Valuation Report. This report and CalPERS’ audited financial statements are publicly available reports that can be obtained at CalPERS’ website under Forms and Publications. Benefits Provided CalPERS provides retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. Benefit provisions under both plans are established by State Statute and City Resolution as follows: Classic PEPRA Prior to On or After Hire date January 1, 2013 January 1, 2013 Benefit formula 2.7% @ 55 2% @ 62 Benefit vesting schedule 5 years service 5 years service Benefit payments Monthly for life Monthly for life Retirement age 50 yrs 52 yrs Monthly benefits, as a % of eligible compensation 2.0%-2.7%, 50 yrs - 55 yrs, resp ectively 1.0%-2.0%, 52 yrs - 62 yrs, resp ectively Required employee contribution rate (FY22-23) 8.00%6.25% Required employer contribution rate (FY22-23) 11.50%11.50% Required employer contribution rate (FY21-22) 11.38%11.38% Miscellaneous . . Item 11 Page 89 of 126 City of Vernon Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023 78 Note 9 – Pension Plan (Continued) A. General Information about the Pension Plan (Continued) Benefits Provided (Continued) Classic PEPRA Prior to On or After Hire date January 1, 2013 January 1, 2013 Benefit formula 3.0% @ 50 2.7% @ 57 Benefit vesting schedule 5 years service 5 years service Benefit payments Monthly for life Monthly for life Retirement age 50 yrs 50 yrs Monthly benefits, as a % of eligible 3%, 50 yrs Required employee contribution rate (FY22-23) 9.00%13.75% Required employer contribution rate (FY22-23) 23.39%20.70% Required employer contribution rate (FY21-22) 22.78%22.78% Safety 2.0% - 2.7% 50 yrs - 57 yrs, resp ectively Participants are eligible for non-industrial disability retirement if they become disabled and have at least 5 years credited service. There is no special age requirement. The standard non-industrial disability retirement benefit is a monthly allowance equal to 1.8 percent of final compensation, multiplied by service years. Industrial disability benefits are not offered to miscellaneous employees. The City provides industrial disability retirement benefits to safety employees only. The industrial disability retirement benefit is a monthly allowance equal to 50 percent of final compensation. An employee's beneficiary may receive the basic death benefit if the employee becomes deceased while actively employed. The employee must be actively employed with the City to be eligible for this benefit. An employee's survivor who is eligible for any other pre-retirement death benefit may choose to receive that death benefit instead of this basic death benefit. The basic death benefit is a lump sum in the amount of the employee's accumulated contributions, where interest is currently credited at 7.5 percent per year, plus a lump sum in the amount of one month's salary for each completed year of current service, up to a maximum of six months’ salary. For purposes of this benefit, one month's salary is defined as the member's average monthly full-time rate of compensation during the 12 months preceding death. Upon the death of a retiree, a one-time lump sum payment of $500 will be made to the retiree's designated survivor(s), or to the retiree 's estate. Benefit terms provide for annual cost-of-living adjustments to each employee's retirement allowance. Beginning the second calendar year after the year of retirement, retirement and survivor allowances will be annually adjusted on a compound basis up to 2 percent. . . Item 11 Page 90 of 126 City of Vernon Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023 79 Note 9 – Pension Plan (Continued) A. General Information about the Pension Plan (Continued) Employees Covered by Benefit Terms At June 30, 2021, the valuation date, the following employees were covered by the benefit terms: Miscellaneous Safety Active employees 144 43 Transferred and terminated employees 186 141 Retired employees and beneficiaries 200 291 Total 530 475 Plans Contributions Section 20814(c) of the California Public Employees’ Retirement Law (“PERL”) requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through CalPERS’ annual actuarial valuation process. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. B. Net Pension Liability Actuarial Methods and Assumption Used to Determine Total Pension Liability The June 30, 2021 valuation was rolled forward to determine the June 30, 2022 total pension liability, based on following actuarial methods and assumptions: Actuarial Methods and Assumptions Used to Determine Total Pension Liability Actuarial Cost Method Actuarial Assumptions: Discount Rate Inflation Salary Increases Mortality Rate Table(1) Post Retirement Benefit Increase (1)The mortality table used was developed based on CalPERS-specific data. The probabilities of mortality are based on the 2021 CalPERS Experience Study for the period from 2001 to 2019. Pre-retirement and Post- retirement mortality rates include generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries. For more details on this table, please refer to the CalPERSExperience Study and Review of Actuarial Assumptions report from November 2021 that can be found on the CalPERS website. Entry Age Normal 6.90% 2.30% Varies by Entry Age and Service The lesser of contract COLA or 2.30% until Purchasing Power Protection. Allowance floor on purchasing power applies, 2.30% thereafter. Derived using CalPERS’ Membership Data for all Funds. . . Item 11 Page 91 of 126 City of Vernon Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023 80 Note 9 – Pension Plan (Continued) B. Net Pension Liability (Continued) Change of Assumptions Effective with the June 30, 2021 valuation date (2022 measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes are estimated, combined with risk estimates, and are used to project compound (geometric) returns over the long term. The discount rate used to discount liabilities was informed by the long-term projected portfolio return. In addition, demographic assumptions and the inflation rate assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. Long-term Expected Rate of Return The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations. Using historical returns of all of the funds’ asset classes, expected compound (geometric) returns were calculated over the next 20 years using a building-block approach. The expected rate of return was then adjusted to account for assumed administrative expenses of 10 basis points. The expected real rates of return by asset class are as follows: Asset Class1 Assumed Asset Allocation Real Return 1,2 Global Equity - Cap-weighted 30.00% 4.54% Global Equity - Non-Cap-weighted 12.00% 3.80% Private Equity 13.00% 7.28% Treasury 5.00% 0.27% Mortgage-backed Securities 5.00% 0.50% Investment Grade Corporates 10.00% 1.56% High Yield 5.00% 2.27% Emerging Market Debt 5.00% 2.48% Private Debt 5.00% 3.57% Real Assets 15.00% 3.21% Leverage -5.00% -0.59% 100.00% 1 An expected inflation of 2.30% used for this period. 2 Figures are based on the 2021 Asset Liability Management study. Discount Rate The discount rate used to measure the total pension liability was 6.90%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability. . . Item 11 Page 92 of 126 City of Vernon Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023 81 Note 9 – Pension Plan (Continued) C. Changes in the Net Pension Liability The following table shows the changes in net pension liability for the City’s Miscellaneous Plan recognized over the measurement period. Total Pension Plan Fiduciary Net Net Pension Liability Position Liability/(Asset) (a) (b) (c) = (a) - (b) Balance at June 30, 2021 (Valuation Date) 194,345,530$ 166,076,674$ 28,268,856$ Changes Recognized for the Measurement Period: Service cost 3,251,213 - 3,251,213 Interest on the total pension liability 13,576,496 - 13,576,496 Changes of benefit terms - - - Changes of assumptions 6,500,648 - 6,500,648 Difference between expected and actual experience 73,961 - 73,961 Net plan to plan resource movement - - - Contributions from the employer - 5,956,560 (5,956,560) Contributions from employees - 1,439,715 (1,439,715) Net investment income - (12,217,103) 12,217,103 Benefit payments, including refunds of employee contributions (11,569,889) (11,569,889) - Administrative expense - (103,456) 103,456 Net Changes during July 1, 2021 to June 30, 2022 11,832,429 (16,494,173) 28,326,602 Balance at June 30, 2022 (Measurement Date) 206,177,959$ 149,582,501$ 56,595,458$ Increase (Decrease) Proportionate Share of Net Pension Liability and Pension Expense The following table shows the City’s safety plan’s proportionate share of the risk pool collective net pension liability over the measure period. Total Pension Plan Fiduciary Net Pension Liability Net Position Liability (a) (b) (c) = (a) - (b) Balance at 6/30/21 (Valuation Date) 294,876,901$ 235,115,101$ 59,761,800$ Balance at 6/30/22 (Measurement Date)307,584,651 206,457,603 101,127,048 Net Changes during 2021-2022 12,707,750 (28,657,498) 41,365,248 Increase (Decrease) The following is the approach established by the plan actuary to allocate the net pension liability and pension expense to the individual employers within the risk pool. (1) In determining a cost-sharing plan’s proportionate share, total amounts of liabilities and assets are first calculated for the risk pool as a whole on the valuation date (June 30, 2021). The risk pool’s fiduciary net position (“FNP”) subtracted from its total pension liability (“TPL”) determines the net pension liability (“NPL”) at the valuation date. . . Item 11 Page 93 of 126 City of Vernon Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023 82 Note 9 – Pension Plan (Continued) C. Changes in the Net Pension Liability (Continued) Proportionate Share of Net Pension Liability and Pension Expense (Continued) (2) Using standard actuarial roll forward methods, the risk pool TPL is then computed at the measurement date (June 30, 2022). Risk pool FNP at the measurement date is then subtracted from this number to compute the NPL for the risk pool at the measurement date. For purposes of FNP in this step and any later reference thereto, the risk pool’s FNP at the measurement date denotes the aggregate risk pool’s FNP at June 30, 2022 less the sum of all additional side fund (or unfunded liability) contributions made by all employers during the measurement period (2021-2022). (3) The individual plan’s TPL, FNP and NPL are also calculated at the valuation date. TPL is allocated based on the rate plan’s share of the actuarial accrued liability. FNP is allocated based on the rate plan’s share of market value assets. (4) Two ratios are created by dividing the plan’s individual TPL and FNP as of the valuation date from (3) by the amounts in step (1), the risk pool’s total TPL and FNP, respectively. (5) The plan’s TPL as of the Measurement Date is equal to the risk pool TPL generated in (2) multiplied by the TPL ratio generated in (4). The plan’s FNP as of the Measurement Date is equal to the FNP generated in (2) multiplied by the FNP ratio generated in (4) plus any additional side fund (or unfunded liability) contributions made by the employer on behalf of the plan during the measurement period. (6) The plan’s NPL at the Measurement Date is the difference between the TPL and FNP calculated in (5). Deferred outflows of resources, deferred inflows of resources, and pension expense are allocated based on the City’s share of net pension liability at the end of measurement date. The City’s proportionate share of the net pension liability was as follows: Safety Plan June 30, 2021 1.1050% June 30, 2022 0.8755% Change - Increase (Decrease) -0.2295% Sensitivity of the Net Pension Liability to Changes in the Discount Rate The following presents the net pension liability of the plans as of the measurement date, calculated using the discount rate of 6.90%, as well as what the net pension liability would be if it were calculated using a discount rate that is 1 percentage-point lower (5.90%) or 1 percentage-point higher (7.90%) than the current rate: Discount Rate Current Discount Discount Rate - 1% (5.90%) Rate (6.90%) + 1% (7.90%) Miscellaneous Plan 86,296,598$ 56,595,458$ 32,344,481$ Safety Plan 143,604,007$ 101,127,048$ 66,411,730$ Plan's Net Pension Liability/(Asset) . . Item 11 Page 94 of 126 City of Vernon Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023 83 Note 9 – Pension Plan (Continued) C. Changes in the Net Pension Liability (Continued) Pension Plan Fiduciary Net Position Detailed information about the plan’s fiduciary net position is available in the separately issued CalPERS financial report. D. Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions For the year ended June 30, 2023, the City recognized pension expense (credit) in the amounts of $9,037,689 and $(4,806,121) for the miscellaneous plan and safety plan, respectively. As of measurement date of June 30, 2022, the City has deferred outflows and deferred inflows of resources related to pensions as follows: Deferred Outflows Deferred Inflows of Resources of Resources Contribution made after measurement period 6,946,066$ -$ Changes of assumptions 4,259,045 - Difference between expected and actual experience 638,538 - Net difference between projected and actual earning on pension plan investments 8,069,881 - Total 19,913,530$ -$ Miscellaneous Plan Deferred Outflows Deferred Inflows of Resources of Resources Contribution made after measurement period 9,178,981$ -$ Changes of assumptions 10,196,668 - Difference between expected and actual experience 4,185,281 (1,098,160) Net difference between projected and actual earning on pension plan investments 15,969,375 - Adjustment due to differences in proportions 3,011,462 - Difference between City contributions and proportionate share of contributions - (6,795,692) Total 42,541,767$ (7,893,852)$ Safety Plan The amounts above are net of outflows and inflows recognized in the 2021-2022 measurement period expense. The expected average remaining service lifetime (“EARSL”) is calculated by dividing the total future service years by the total number of plan participants (active, inactive, and retired). The EARSL for the Miscellaneous Plan and the Safety Plan risk pool for the 2021-22 measurement period is 2.9 and 3.7 years, which was obtained by dividing the total service years of 1,560 and 574,655 (the sum of remaining service lifetimes of the active employees) by 530 and 153,587 (the total number of participants: active, inactive, and retired), respectively. . . Item 11 Page 95 of 126 City of Vernon Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023 84 Note 9 – Pension Plan (Continued) D. Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions (Continued) $6,946,066, and $9,178,981 reported as deferred outflows of resources related to pensions for miscellaneous plan and safety plan, respectively, resulting from the City’s contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability and collectively net pension liability, respectively, in the year ending June 30, 2024. Other amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in the future pension expense as follows: Measurement Period Ending June 30 Miscellaneous Safety 2023 4,308,400$ 7,231,853$ 2024 3,298,754 5,346,795 2025 658,038 3,148,764 2026 4,702,272 9,741,522 Total 12,967,464$ 25,468,934$ Deferred Outflows/(Inflows) of Resources Note 10 – Other Postemployment Benefits (“OPEB”) A. General Information about the OPEB Plan Plan Description Retiree medical and dental benefits are established through the City’s Fringe Benefits and Salary Resolution as well as individual Memorandum of Understanding (“MOU”) between the City and the City’s various employee bargaining groups. Benefits Provided Generally, the City will provide a postemployment benefit plan for the employee only to those who retire at age sixty (60) or later with twenty (20) years of continuous uninterrupted service up to the age of sixty-five (65). Alternatively, employees who retire before the age of sixty (60) with twenty (20) years of continuous uninterrupted service, will be permitted to pay their medical and dental premium cost and upon reaching the age of fifty (50), the City will pay the premium for the medical and dental plans until they reach the age of sixty-five (65). . . Item 11 Page 96 of 126 City of Vernon Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023 85 Note 10 – Other Postemployment Benefits (“OPEB”) (Continued) A. General Information about the OPEB Plan (Continued) Benefits Provided (Continued) Resolution 2011-129 provided lifetime medical benefits to Police Management employees and their spouses, who have been employed as sworn safety personnel for a minimum of twenty (20) years and a minimum of ten (10) years of that service have been with the City of Vernon. Resolution 2011-127 sets forth the MOU of the Vernon Police Officers’ Benefit Association, provided lifetime medical benefits to those employees and their spouses, who have been employed as sworn safety personnel for a minimum of twenty (20) years and a minimum of ten (10) years of that service has been with the City of Vernon. Resolution 2012-217 granted specific retiree medical benefits to employees who retire during the 2012-2013 fiscal year in order to provide an incentive for early retirement whereby the City authorized the payment of medical and dental insurance premiums for eligible retiring employees and their eligible dependents with at least ten (10) years of service plus 5% for each additional full year of service above the ten (10) years of service, and that this offer be extended as an option to safety and safety management groups, at their discretion, in addition to the related options provided in the Vernon Firefighters Association MOU and the Vernon Police Officers’ Benefit Association MOU. Resolution 2013-06 declared that the retiree medical benefits which had not been a vested right for employees will continue to be nonvested right for employees who continue to be employed by the City on or after July 1, 2013, but will become a vested right for those who retire during the 2012-2013 fiscal year. The City’s plan is considered a substantive OPEB plan and the City recognizes cost in accordance with GASB Statement No 75. The City may terminate its unvested OPEB in the future. Eligibility All of the Plan’s employees became participants in accordance with a negotiated Memorandum of Understanding (“MOU”) as negotiated by each group or bargaining unit. In order to receive benefits, eligible employees must meet the minimum requirements defined in their MOU. At June 30, 2022 valuation date, the following numbers of participants were covered by the benefit terms: Active plan members 209 Inactive plan members currently receiving benefits 128 Inactive plan members entitled to but not receiving benefits 15 Total 352 Contributions The City has established an irrevocable OPEB trust with assets dedicated to paying future retiree medical benefits. The City intends to contribute 100% or more of the actuarially determined contribution for the explicit subsidy liability only. The portion of the liability due to the implicit subsidy is not prefunded but is paid as benefits come due. For the year ended June 30, 2023, the City contributed $1,538,693 to the trust, paid $1,572,048 for retiree premiums, resulting in a total contribution of $3,110,741. . . Item 11 Page 97 of 126 City of Vernon Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023 86 Note 10 – Other Postemployment Benefits (“OPEB”) (Continued) B. Net OPEB Liability The OPEB liability was measured as of June 30, 2022, and total liability used to calculate the net OPEB liability was determined by an actuarial valuation as of June 30, 2022. Significant Actuarial Assumptions Used for Total OPEB Liability The total OPEB liability, measured as of June 30, 2022, was determined using the following actuarial assumptions: Actuarial Cost Method Actuarial Assumptions: Asset Valuation Method Inflation Salary Increases Long Term return on Assets Discount Rate Mortality Improvement Healthcare Trend CalPERS 2021 Experience Study; Project with MP Scale Based on 2022 Getzen model with in inflation rate of 7.00% non-Medicare / 5.50% Medicare decreasing gradually to an ultimate rate of 3.73% by 2075 2.80% wage inflation plus seniority, merit, and promotion salary increases based on CalPERS Expenditure Study and Review of Actuarial Assumptions published in November 2021 Entry Age Normal Market value of assets 6.00% 6.00% 2.30% Change in assumptions Discount rate changed from 6.25% at June 30, 2021 to 6.00% at June 30, 2022. Healthcare trend rate assumption and mortality improvement scale were updated. Discount Rate The discount rate used to measure the total OPEB liability was 6.00%. The projection of cash flows used to determine the discount rate assumed that City contributions will be made at rates equal to the actuarially determined contribution rates. Based on those assumptions, the OPEB plan's fiduciary net position was projected to be available to make all projected OPEB payments for current active and inactive employees and beneficiaries. Therefore, the long-term expected rate of return on OPEB plan investments was applied to all periods of projected benefit payments to determine the total OPEB liability. Expected Long-Term Rates of Return Long-term Target Expected Real Asset Class Allocation Rate of Return Global Equity 49.00% 4.50% Fixed Income 23.00% 1.40% Global Real Estate (REITs) 20.00% 3.70% Treasury Inflation Protected Securities (TIPS) 5.00% 0.50% Commodities 3.00% 1.10% Total 100.00% . . Item 11 Page 98 of 126 City of Vernon Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023 87 Note 10 – Other Postemployment Benefits (“OPEB”) (Continued) C. Changes in Net OPEB Liability The following presents the changes in the net OPEB liability for the governmental activities’ Retiree Health Plan: Total OPEB Plan Fiduciary Net Net OPEB Liability Position Liability (a)(b)(c) = (a) - (b) Balance at June 30, 2021 27,389,842$ 11,016,209$ 16,373,633$ Changes Recognized for the Measurement Period: Service Cost 365,851 - 365,851 Interest on the total OPEB liability 1,689,071 - 1,689,071 Investment income - (1,612,431) 1,612,431 Employer contribution - 3,022,275 (3,022,275) Changes of benefit terms (78,332) - (78,332) Administrative expenses - (2,903) 2,903 Benefit payments (1,483,582) (1,483,582) - Assumption changes 565,573 - 565,573 Plan experience (1,122,750) - (1,122,750) Net Changes during July 1, 2021 to June 30, 2022 (64,169) (76,641) 12,472 Balance at June 30, 2022 (Measurement Date)27,325,673$ 10,939,568$ 16,386,105$ Increase (Decrease) Sensitivity of the Net OPEB Liability to Change in the Discount Rate The following presents the total OPEB liability of the City, as well as what the City’s total OPEB liability would be if it were calculated using a discount rate that is 1 percentage-point lower (5.00 percent) or 1percentage- point higher (7.00 percent) than the current discount rate: Sensitivity of the Net OPEB Liability to Change in the Discount Rate (Continued) Discount Rate Current Discount Discount Rate -1% (5.00%) Rate (6.00%) +1 % (7.00%) 19,491,170$ 16,386,105$ 13,782,951$ Plan's Net OPEB Liability Sensitivity of the Total OPEB Liability to Changes in the Health Care Cost Trend Rates The following presents the total OPEB liability of the City, as well as what the City’s total OPEB liability would be if it were calculated using healthcare cost trend rates that are 1 percentage-point lower or 1 percentage-point higher than the current healthcare cost trend rates: Healthcare Cost Healthcare Cost Healthcare Cost Trend Rate - 1% Trend Rate Trend Rate + 1% 15,196,487$ 16,386,105$ 17,537,069$ Plan's Net OPEB Liability . . Item 11 Page 99 of 126 City of Vernon Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023 88 Note 10 – Other Postemployment Benefits (“OPEB”) (Continued) C. Changes in Net OPEB Liability (Continued) OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB For the measurement period ended June 30, 2022, the City recognized OPEB credit of $(701,650). At June 30, 2023, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: Deferred Outflows Deferred Inflows of Resources of Resources Contribution made after measurement period 3,110,741$ -$ Changes in assumptions 827,520 (2,568,416) Difference between expected and actual experience 105,096 (3,461,620) Net difference between projected and actual earning on OPEB plan investments 1,033,627 - Total 5,076,984$ (6,030,036)$ The $3,110,741 reported as deferred outflows of resources related to contributions subsequent to the June 30, 2022 measurement date will be recognized as a reduction of the net OPEB liability during the year ending June 30, 2024. Other amounts reported as deferred outflows and inflows of resources related to OPEB will be recognized as expense as follows: Measurement Deferred Period Outflows/(Inflows) Ending June 30 of Resources 2023 (1,954,015)$ 2024 (1,940,223) 2025 (238,356) 2026 315,330 2027 (166,934) Thereafter (79,595) Total (4,063,793)$ Note 11 – Southern California Public Power Authority The Southern California Public Power Authority (the “SCPPA”) was formed in 1980 as a not for profit joint powers agency. SCPPA is currently comprised of 11 Southern California cities and an irrigation district. The SCPPA’s purpose is planning, financing, acquiring, constructing, and operating of projects that generate or transmit electric energy for sale to its participants. The joint powers agreement has a term expiring in 2030 or such later date as all bonds and notes of SCPPA and interest thereon have been paid in full or adequate provisions for payments have been made. A copy of SCPPA’s audited financial statements can be reviewed on their website at www.scppa.org or can be obtained by written request at 1160 Nicole Ct Glendora, CA 91740. . . Item 11 Page 100 of 126 City of Vernon Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023 89 Note 11 – Southern California Public Power Authority (Continued) A. Take or Pay Contract The SCPPA’s interest of entitlements in natural gas generation, and transmission projects are jointly owned with other utilities. Under these arrangements, a participating member has an undivided interest in a utility plant and is responsible for its proportionate share of the costs of construction and operation and is entitled to its proportionate share of the energy, available transmission capacity, or natural gas produced. Each joint plant participant, including the SCPPA, is responsible for financing its share of construction and operating costs. The City has the following “take or pay” contract with the SCPPA: Palo Verde Project The SCPPA purchases a 5.91% interest in the Palo Verde Nuclear Generating Station (the “Station”), a nuclear- fired generating station near Phoenix, Arizona, from Salt River Project Agricultural Improvement and Power District, and a 6.55% share of the right to use certain portions of the Arizona Nuclear Power Project Valley Transmission System. The City has a 4.9% entitlement share of the SCPPA’s interest in the station. Between 1983 and 2008, the SCPPA issued $3.266 billion in debt of Power Project Revenue Bonds for the Station to finance the bonds and the purchase of the SCPPA’s share of the Station and related transmission right. The bonds are not obligations of any member of the SCPPA or public agency other than the SCPPA. Under a power sales contract with the SCPPA, the City is obliged on a “take or pay” basis for its proportionate share of power generated, as well as to make payments for its proportionate share of the operating and maintenance expenses of the Station, debt service on the bonds and any other debt, whether or not the project or any part thereof or its output is suspended, reduced or terminated. The City took its proportionate share of the power generated and its proportionate share of costs during the fiscal year 2023 was $3,730,000. The City expects no significant increases in costs related to its nuclear resources. B. Power Purchase Commitments The SCPPA has entered into power purchase agreements with project participants. These agreements are substantially “take-and-pay” contracts where there may be other obligations not associated with the of energy. The City has entered into power purchase agreements with the SCPPA related to the following projects: Astoria 2 Solar Project On July 23, 2014, the SCPPA entered into a power purchase agreement with Recurrent Energy for solar energy from the Astoria 2 Solar Project. SCPPA is entitled to 35 MW of photovoltaic generating capacity from commercial operation to December 31, 2021 and 45 MW of generating capacity from January 1, 2022 until the expected expiration date of December 31, 2036. The commercial operation date was December 2016. Power and Water Resources Pooling SCPPA, Lodi, Corona, Moreno Valley, and Rancho Cucamonga, are each buying the output of a separate portion of the facility, which is located in Kern County, California. SCPPA has purchase options in the 10th, 15th, and 20th Contract Years. The project is forecasted to start at a capacity factor of 31% with a 0.5% annual degradation. ACES Power Marketing is the third-party scheduling coordinator for the project. The City contracted to purchase 57.1429% until December 31, 2021, and 66.6667% thereafter, of the output. The City’s proportionate share of costs for fiscal year 2023 was $10,114,000. . . Item 11 Page 101 of 126 City of Vernon Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023 90 Note 11 – Southern California Public Power Authority (Continued) B. Power Purchase Commitments (Continued) Puente Hills Landfill Gas-to-Energy Project On June 25, 2014, the SCPPA entered into a power purchase agreement with County Sanitation District No. 2 of Los Angeles County for 46 MW of the electric generation from a landfill gas to energy facility, located at Whittier, California. The project began deliveries to the SCPPA on January 1, 2017 for a term of 10 years. The City contacted to purchase 23.2558% of the output. The City’s proportional share of the costs during fiscal year 2023 was $6,616,000. Antelope DSR 1 Solar Project On July 16, 2015, the SCPPA, entered into a power purchase agreement with Antelope DSR 1, LLC for 50 MW solar photovoltaic generating capacity from the Antelope DSR 1 Solar Facility. The facility is located near Lancaster, California, and commercial operation occurred on December 16, 2016 for a term of 20 years. The City’s proportionate share of costs during fiscal year 2023 was $6,124,000. Hoover Dam Hydroelectric Power Plant The Hoover Dam Hydroelectric Power Plant is located on the Arizona-Nevada border, approximately 25 miles southeast of Las Vegas. This hydropower plant is part of the larger Hoover Dam facility, which was completed in 1935 and controls the flow of the Colorado River. The Hoover Dam facility consists of 17 generating units and two service generating units with a total installed capacity of 2,080 MW. In 1987, Vernon entered a power purchase agreement to purchase 22 MW of firm capacity from the Western Area Power Administration. SCPPA and other contractor allocations of Hoover power have been extended for 50 years beyond the power purchase agreement’s original expiration in 2017, which now expires in 2067. The City’s proportionate share of costs during fiscal year 2023 was $574,973. Desert Harvest 2 REC Solar PV Project On December 17, 2020, SCPPA executed a power purchase agreement with EDF Renewables for 70 MW of solar PV capacity from the Desert Harvest 2 Solar PV project. The project is a fixed-tilt PV system that interconnects at the Marketplace substation and is located on 1,200 acres of Bureau of Land Management land in Desert Center, California. The REC + Index agreement serves the cities of Anaheim, Burbank, and Vernon. VPU is entitled to 17.14 percent of the Project’s output or about 12 MW. This power purchase agreement, which expires at the end of 2045, only provides renewable energy credits (RECs). The City’s proportionate share of costs during fiscal year 2023 was $627,755. Sapphire Solar Project On January 17, 2023, the SCPPA, entered into a power purchase agreement with EDF Renewables North America for 39 MW solar power and up to approximately 19.7 MW of battery storage with associated green attributes through the Sapphire Solar Project for a projected annual amount of $6,665,000 over a 20-year term. The expected start date of the project is December 31, 2025. . . Item 11 Page 102 of 126 City of Vernon Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023 91 Note 11 – Southern California Public Power Authority (Continued) B. Power Purchase Commitments (Continued) Daggett Solar PV and BESS Project The Daggett Solar plus BESS project is a single‑axis tracker 65 MW solar with a 33 MW 4‑hour Lithium‑Ion BESS. The commercial operation date was December 12, 2023. The project, located in the City of Daggett in San Bernardino County, is a portion of an approximately 482 MW solar PV facility. The project is being developed by Clearway Energy Group and is owned by Daggett Solar Power 2 LLC. On June 24, 2022, SCPPA executed a PPA for 65 MW for the cities of Vernon and Cerritos. The PPA entitles VPU to 60 MW of solar PV output and 30 MW of energy storage. The commercial operation date was December 12, 2023. The power purchase agreement expires on December 31, 2044. Note 12 – Commitment and Contingencies Contract with Los Angeles County Fire Department The City contracted with the County of Los Angeles (“LA County”) for Fire services on May 20, 2020, setting forth terms and conditions under which LA County will provide fire protection, paramedic, and incidental services in the City for the next ten years. The City is to pay LA County the annual fee on a monthly basis. During the initial five-year period, the annual fee limitation shall not exceed 4% per fiscal year, during the sixth year of the agreement the annual fee limitation shall be the average of the preceding four years’ percentage increases plus 1%. During the seventh year of the agreement and each subsequent fiscal year, the annual fee limitation shall be the average of the immediate preceding five years’ percentage increases in the Annual Fee of 1%. Additionally, there are conversion costs that will be paid in 36 equal monthly payments. The agreement shall remain in effect for a minimum of 10 years, subsequently it will be renewed for one-year period. Either party may terminate this agreement any time after the expiration of the initial 10-year period term upon one year’s written notice. The contract costs for the year ended June 30, 2023 was totaled $14,326,351. . . Item 11 Page 103 of 126 92 This page intentionally left blank. . . Item 11 Page 104 of 126 REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED) 93 . . Item 11 Page 105 of 126 This page intentionally left blank. 94 . . Item 11 Page 106 of 126 Original Final Variance with Budget Budget Actual Final Budget REVENUES: Taxes 55,256,414$ 55,256,414$ 59,628,704$ 4,372,290$ Special assessments 127,200 127,200 273,830 146,630 Licenses and permits 1,203,000 1,203,000 1,878,995 675,995 Fines, forfeitures, and penalties 2,336,900 2,336,900 2,387,396 50,496 Intergovernmental 7,640,962 7,640,962 2,353,070 (5,287,892) Investment earnings 85,000 85,000 414,374 329,374 Charges for services 11,312,934 11,312,934 10,245,375 (1,067,559) Rent income 551,500 551,500 519,373 (32,127) Other revenues 393,000 393,000 1,043,247 650,247 Total revenues 78,906,910 78,906,910 78,744,364 (162,546) EXPENDITURES: Current: General government 16,320,525 16,487,525 15,630,351 857,174 Public safety 36,124,377 36,346,405 33,860,124 2,486,281 Public works 11,510,917 11,510,917 9,695,296 1,815,621 Health services 2,170,356 2,170,356 1,691,036 479,320 Capital outlay 18,939,150 19,084,997 4,593,430 14,491,567 Debt service: Principal retirement 225,620 225,620 225,620 - Interest and fiscal charges 1,487 1,487 1,487 - Total expenditures 85,292,432 85,827,307 65,697,344 20,129,963 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES (6,385,522) (6,920,397) 13,047,020 19,967,417 OTHER FINANCING SOURCES: Transfer in 799,329 799,329 491,542 (307,787) Proceeds from sale of capital asset - - 67,582 67,582 Issuance of debt - - 538,544 538,544 Total other financing sources 799,329 799,329 1,097,668 298,339 NET CHANGE IN FUND BALANCE (5,586,193)$ (6,121,068)$ 14,144,688 20,265,756$ FUND BALANCE: Beginning of year 27,847,091 End of year 41,991,779$ City of Vernon Required Supplementary Information (Unaudited) Budgetary Comparison Schedule - General Fund For the Year Ended June 30, 2023 95 . . Item 11 Page 107 of 126 This page intentionally left blank. 96 . . Item 11 Page 108 of 126 City of Vernon Required Supplementary Information (Unaudited) Notes to the Budgetary Comparison Schedule For the Year Ended June 30, 2023 Budgetary Information The City adheres to the following general procedures in establishing its annual budget, which is reflected in the accompanying General Fund budgetary comparison schedule. Encumbrances outstanding at year-end do not constitute expenditures or liabilities. Encumbrances outstanding at year-end are reported as committed fund balance for subsequent year expenditures through City Council action. Unencumbered appropriations lapse at year-end. An annual budget is adopted by the City Council that provides for the general operation of the City. The budget includes authorized expenditures and estimated revenues of the General Fund. The budget is adopted on a modified accrual basis and formally integrated into the accounting system and employed as a management control device during the year. Excess expenditures over appropriations are financed by beginning fund balance. The final budgeted amounts used in the accompanying General Fund budgetary comparison schedule include any amendments made during the fiscal year 2023. Encumbrances carried forward from the prior year are reflected in the original budget. Encumbrances, which are commitments related to executory contracts for goods and services, are recorded to assure effective budgetary control and accountability. 97 . . Item 11 Page 109 of 126 Fiscal year 2015 2016 2017 2018 2019 Measurement period 2013-141 2014-15 2015-16 2016-17 2017-18 Total pension liability Service cost 1,955,694$ 1,962,270$ 2,129,659$ 2,432,788$ 2,826,440$ Interest 9,609,274 9,447,012 9,969,103 10,383,859 11,053,679 Differences between expected and actual experience - (9,700,904) 1,046,363 (711,339) 3,059,775 Changes of assumptions - (2,466,126) - 9,321,776 (549,432) Benefit payments, including refunds of employee contributions (2,388,449) (5,680,624) (5,748,657) (6,145,366) (6,166,082) Net change in total pension liability 9,176,519 (6,438,372) 7,396,468 15,281,718 10,224,380 Total pension liability - beginning 128,340,045 137,516,564 131,078,192 138,474,660 153,756,378 Total pension liability - ending (a)137,516,564$ 131,078,192$ 138,474,660$ 153,756,378$ 163,980,758$ Pension fiduciary net position Contributions - employer 1,825,732$ 2,340,002$ 3,140,644$ 3,629,603$ 3,380,432$ Contributions - employee 1,015,741 1,054,426 1,095,824 1,245,990 1,214,616 Net investment income 16,045,243 2,337,855 583,692 11,857,647 9,803,260 Benefit payments, including refunds of employee contributions (2,388,449) (5,680,624) (5,748,657) (6,145,366) (6,166,082) Net plan to plan resources movement - 18 (780) 1,118 (296) Administrative expense - (124,052) (67,200) (161,327) (186,518) Other miscellaneous income/expense - - - - (354,202) Net change in plan fiduciary net position 16,498,267 (72,375) (996,477) 10,427,665 7,691,210 Plan fiduciary net position - beginning2 93,838,356 110,336,623 110,264,248 109,267,771 119,695,436 Plan fiduciary net position - ending (b)110,336,623$ 110,264,248$ 109,267,771$ 119,695,436$ 127,386,646$ Plan net pension liability - ending (a) - (b)27,179,941$ 20,813,944$ 29,206,889$ 34,060,942$ 36,594,112$ Plan fiduciary net position as a percentage 80.24% 84.12% 78.91% 77.85% 77.68% of the total pension liability Covered payroll3 11,084,188$ 11,708,057$ 13,150,103$ 13,440,076$ 15,146,241$ Plan net pension liability as a percentage of covered payroll 245.21% 177.77% 222.10% 253.43% 241.61% 1 2 3 Notes to Schedule: City of Vernon Required Supplementary Information (Unaudited) Schedule of Changes in Net Pension Liability and Related Ratios For the Year Ended June 30, 2023 Last Ten Fiscal Years1 California Public Employees' Retirement System Defined Pension Plan - Miscellaneous Plan Historical information is presented only for measurement periods for which GASB 68 is implemented in 2013-14. Additional years of information will be displayed as it becomes available. Includes one year’s payroll growth using 2.80% payroll growth assumption for fiscal year ended June 30, 2022; 2.75% payroll growth assumption for fiscal years ended June 30, 2018-21; 3.00% payroll growth assumption for fiscal years ended June 30, 2014-17. Benefit Changes: There were no changes in benefits. Changes of Assumptions: Effective with the June 30, 2021 valuation date (2022 measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes are estimated, combined with risk estimates, and are used to project compound (geometric) returns over the long term. The discount rate used to discount liabilities was informed by the long-term projected portfolio return. In addition, demographic assumptions and the inflation rate assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. The accounting discount rate was 7.15% for measurement dates 2017 through 2021, 7.65% for measurement dates 2015 through 2016, and 7.50% for measurement date 2014. Additionally, CalPERS employeesparticipate in various State of California agent pension plans and during Fiscal Year 2017-18, CalPERS recorded a correction to previously reported financial statements to properly reflect its proportionate share of activity related to pensions in accordance with GASB Statement No. 68, Accounting and Financial Reporting for Pensions (GASB 68). 98 . . Item 11 Page 110 of 126 Fiscal year ended 2020 2021 2022 2023 Measurement period 2018-19 2019-20 2020-21 2021-22 Total pension liability Service cost 2,991,388$ 2,905,980$ 2,735,636$ 3,251,213$ Interest 11,863,069 12,502,379 13,153,255 13,576,496 Differences between expected and actual experience 3,767,030 1,316,307 1,777,340 73,961 Changes of assumptions - - - 6,500,648 Benefit payments, including refunds of employee contributions (6,652,881) (7,720,453) (8,274,278) (11,569,889) Net change in total pension liability 11,968,606 9,004,213 9,391,953 11,832,429 Total pension liability - beginning 163,980,758 175,949,364 184,953,577 194,345,530 Total pension liability - ending (a)175,949,364$ 184,953,577$ 194,345,530$ 206,177,959$ Pension fiduciary net position Contributions - employer 3,908,165$ 4,501,532$ 4,979,542$ 5,956,560$ Contributions - employee 1,357,537 1,271,580 1,161,711 1,439,715 Net investment income 8,077,977 6,484,512 30,012,771 (12,217,103) Benefit payments, including refunds of employee contributions (6,652,881) (7,720,453) (8,274,278) (11,569,889) Net plan to plan resources movement - - - Administrative expense (90,906) (188,889) (138,188) (103,456) Other miscellaneous income/expense 296 - - - Net change in plan fiduciary net position 6,600,188 4,348,282 27,741,558 (16,494,173) Plan fiduciary net position - beginning 127,386,646 133,986,834 138,335,116 166,076,674 Plan fiduciary net position - ending (b)133,986,834$ 138,335,116$ 166,076,674$ 149,582,501$ Plan net pension liability - ending (a) - (b)41,962,530$ 46,618,461$ 28,268,856$ 56,595,458$ Plan fiduciary net position as a percentage 76.15% 74.79% 85.45% 72.55% of the total pension liability Covered payroll3 15,996,725$ 15,399,491$ 15,355,968$ 15,913,917$ Plan net pension liability as a percentage of covered payroll 262.32% 302.73% 184.09% 355.63% City of Vernon Required Supplementary Information (Unaudited) Schedule of Changes in Net Pension Liability and Related Ratios (Continued) For the Year Ended June 30, 2023 Last Ten Fiscal Years1 California Public Employees' Retirement System Defined Pension Plan - Miscellaneous Plan (Continued) 99 . . Item 11 Page 111 of 126 Fiscal year 2015 2016 2017 2018 2019 Measurement period 2013-141 2014-15 2015-16 2016-17 2017-18 Total pension liability Service cost 3,448,760$ 3,388,157$ 3,454,025$ 4,144,398$ 4,414,740$ Interest 15,255,372 15,777,736 16,325,879 16,898,830 17,691,261 Differences between expected and actual experience - (2,400,883) (2,430,394) (1,380,683) 2,008,618 Changes of assumptions - (3,878,396) - 14,134,794 (1,533,898) Benefit payments, including refunds of employee contributions (9,639,123) (9,470,058) (9,736,302) (10,147,899) (10,992,416) Net change in total pension liability 9,065,009 3,416,556 7,613,208 23,649,440 11,588,305 Total pension liability - beginning 206,500,143 215,565,152 218,981,708 226,594,916 250,244,356 Total pension liability - ending (a)215,565,152$ 218,981,708$ 226,594,916$ 250,244,356$ 261,832,661$ Pension fiduciary net position Contributions - employer 3,234,539$ 4,147,441$ 5,116,412$ 5,476,196$ 6,109,373$ Contributions - employee 1,092,012 1,167,329 1,222,561 1,212,646 1,302,308 Net investment income 24,855,525 3,525,241 760,559 17,760,401 14,666,919 Benefit payments, including refunds of employee contributions (9,639,123) (9,470,058) (9,736,302) (10,147,899) (10,992,416) Net plan to plan resources movement - 24 780 (1,118) (431) Administrative expense - (191,323) (99,525) (237,068) (272,124) Other miscellaneous income/expense - - - - (516,768) Net change in plan fiduciary net position 19,542,953 (821,346) (2,735,515) 14,063,158 10,296,861 Plan fiduciary net position - beginning 144,582,109 164,125,062 163,303,716 160,568,201 174,631,359 Plan fiduciary net position - ending (b)164,125,062$ 163,303,716$ 160,568,201$ 174,631,359$ 184,928,220$ Plan net pension liability - ending (a) - (b)51,440,090$ 55,677,992$ 66,026,715$ 75,612,997$ 76,904,441$ Plan fiduciary net position as a percentage 76.14% 74.57% 70.86% 69.78% 70.63% of the total pension liability Covered payroll 12,510,920$ 12,740,785$ 12,971,888$ 13,879,896$ 14,292,273$ Plan net pension liability as a percentage of covered payroll 411.16% 437.01% 509.00% 544.77% 538.08% 1 Notes to Schedule: City of Vernon Required Supplementary Information (Unaudited) Schedule of Proportionate Share of Net Pension Liability and Related Ratios Historical information is presented only for measurement periods for which GASB No. 68 is presented for periods after GASB 68 implemented in 2013-14. Additionally, measurement period 2019-20 (fiscal year 2021) was the first year the City's Safety Plan converted from an Agent Multiple Plan to a Cost Sharing Plan. Therefore, only six years are shown. Benefit Changes: There were no changes in benefits. Changes of Assumptions: In 2019, there were no changes. In 2018, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Actuarial Assumptions December 2017. There were no changes in the discount rate. In 2017, the discount rate was reduced from 7.65 percent to 7.15 percent. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense.) In 2014, amounts reported were based on the 7.5 percent discount rate. For the Year Ended June 30, 2023 Last Ten Fiscal Years1 California Public Employees' Retirement System Defined Pension Plan - Safety Plan 100 . . Item 11 Page 112 of 126 Fiscal year 2020 Measurement period 2018-19 Total pension liability Service cost 4,287,003$ Interest 18,414,262 Differences between expected and actual experience (364,199) Changes of assumptions - Benefit payments, including refunds of employee contributions (12,139,668) Net change in total pension liability 10,197,398 Total pension liability - beginning 261,832,661 Total pension liability - ending (a)272,030,059$ Pension fiduciary net position Contributions - employer 7,011,540$ Contributions - employee 1,239,891 Net investment income 12,275,401 Benefit payments, including refunds of employee contributions (12,139,668) Net plan to plan move - Administrative expense (131,969) Other miscellaneous income/expense 431 Net change in plan fiduciary net position 8,255,626 Plan fiduciary net position - beginning 184,928,220 Plan fiduciary net position - ending (b)193,183,846$ Plan net pension liability - ending (a) - (b)78,846,213$ Plan fiduciary net position as a percentage 71.02% of the total pension liability Covered payroll 13,737,311$ Plan net pension liability as a percentage of covered payroll 573.96% City of Vernon Required Supplementary Information (Unaudited) Schedule of Proportionate Share of Net Pension Liability and Related Ratios (Continued) For the Year Ended June 30, 2023 Last Ten Fiscal Years1 California Public Employees' Retirement System Defined Pension Plan - Safety Plan (Continued) 101 . . Item 11 Page 113 of 126 This page intentionally left blank. 102 . . Item 11 Page 114 of 126 Fiscal year 2021 2022 2023 Measurement period 2019-20 2020-21 2021-22 City's proportion of the net pension liability 1.33110% 1.70286% 1.47167% City's proportionate share of the net pension liability 88,682,300$ 59,761,800$ 101,127,048$ City's covered payroll 2 11,770,766$ 7,618,673$ 5,630,861$ City's proportionate share of the net pension liability as a percentage of its covered payroll 753.41% 784.41% 1795.94% Plan fiduciary net position as a percentage of the total pension liability 69.13% 79.73% 67.12% 1 Notes to Schedule: Measurement period 2019-20 was the first year the City's Safety Plan was converted from an Agent Multiple Plan to a Cost Sharing Plan therefore only three years are shown. Benefit Changes: There were no changes in benefits. Changes of Assumptions: Effective with the June 30, 2021 valuation date (2022 measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes are estimated, combined with risk estimates, and are used to project compound (geometric) returns over the long term. The discount rate used to discount liabilities was informed by the long-term projected portfolio return. In addition, demographic assumptions and the inflation rate assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. The accounting discount rate was 7.15% for measurement 2020 through 2021. City of Vernon Required Supplementary Information (Unaudited) Schedule of the City's Proportionate Share of the Net Pension Liability and Related Ratios For the Year Ended June 30, 2023 Last Ten Fiscal Years1 California Public Employees' Retirement System Defined Pension Plan - Safety Plan 103 . . Item 11 Page 115 of 126 Fiscal year 2014 2015 2016 2017 2018 Actuarially determined contribution 1,825,732$ 2,340,002$ 3,140,644$ 3,629,603$ 3,380,432$ Contributions in relation to the actuarially determined contribution (1,825,732) (2,340,002) (3,140,644) (3,629,603) (3,380,432) Contribution deficiency (excess)-$ -$ -$ -$ -$ Covered payroll1 11,084,188$ 11,708,057$ 13,150,103$ 13,440,076$ 15,146,241$ Contributions as a percentage of covered payroll 16.47% 19.99% 23.88% 27.01% 22.32% 1 Notes to Schedule: Methods and assumptions used to determine contribution rates: Actuarial cost method Entry Age Actuarial Cost Method Amortization method Level percentage of payroll Asset valuation method Fair Market Value Inflation 2.500% Salary increases varies by entry age and service Payroll Growth 2.750% Investment rate of return Retirement age Mortality City of Vernon Required Supplementary Information (Unaudited) Schedule of Contributions - Pensions For the Year Ended June 30, 2023 Last Ten Fiscal Years California Public Employees' Retirement System Defined Pension Plan - Miscellaneous Plan The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2022-23 were derived from the June 30, 2020 funding valuation report. 7% Net of Pension Plan Investment and Administrative Expenses; includes Inflation. The probabilities of Retirement are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre-retirement and Post-retirement mortality rates include 15 years of projected mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries. Includes on year's payroll growth using 2.80 percent payroll growth assumption for fiscal years ended June 30, 2023; 2.75 percent payroll growth assumption for fiscal years ended June 30, 2018-2021; 3 percent payroll growth assumption for fiscal years ended June 30, 2014-2017. 104 . . Item 11 Page 116 of 126 Fiscal year 2019 2020 2021 2022 2023 Actuarially determined contribution 3,908,165$ 4,501,532$ 4,979,542$ 5,956,560$ 6,946,066$ Contributions in relation to the actuarially determined contribution (3,908,165) (4,501,532) (4,979,542) (5,956,560) (6,946,066) Contribution deficiency (excess)-$ -$ -$ -$ -$ Covered payroll1 15,996,725$ 15,827,780$ 14,803,225$ 15,913,917$ 16,359,507$ Contributions as a percentage of covered payroll 24.43% 28.44% 33.64% 37.43% 42.46% City of Vernon Required Supplementary Information (Unaudited) Schedule of Contributions - Pensions (Continued) For the Year Ended June 30, 2023 Last Ten Fiscal Years California Public Employees' Retirement System Defined Pension Plan - Miscellaneous Plan (Continued) 105 . . Item 11 Page 117 of 126 Fiscal year 2014 2015 2016 2017 2018 Actuarially determined contribution 3,234,539$ 4,147,441$ 5,116,412$ 5,476,196$ 6,109,373$ Contributions in relation to the actuarially determined contribution (3,234,539) (4,147,441) (5,116,412) (5,476,196) (6,109,373) Contribution deficiency (excess)-$ -$ -$ -$ -$ Covered payroll1 12,510,920$ 12,740,785$ 12,971,888$ 13,879,896$ 0 14,292,273$ Contributions as a percentage of covered payroll.25.85% 32.55% 39.44% 39.45% 42.75% 1 Notes to Schedule: Methods and assumptions used to determine contribution rates: Amortization method Level percentage of payroll Discount rate 7.000% Inflation 2.500% Salary increases varies by entry age and service Payroll Growth 2.750% Retirement age Mortality City of Vernon Required Supplementary Information (Unaudited) Schedule of Contributions - Pensions (Continued) Last Ten Fiscal Years California Public Employees' Retirement System Defined Pension Plan - Safety Plan Includes one year’s payroll growth using 2.80 percent payroll growth assumption for fiscal years ended June 30, 2022-23; 2.75 percent payroll growth assumption for fiscal years ended June 30, 2018-21; 3.00 percent payroll growth assumption for fiscal years ended June 30, 2014-17. The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2022-23 were derived from the June 30, 2020 funding valuation report. The probabilities of Retirement are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Derived using CalPERS' membership data for all funds. For the Year Ended June 30, 2023 106 . . Item 11 Page 118 of 126 Fiscal year 2019 2020 2021 2022 2023 Actuarially determined contribution 7,011,540$ 7,834,050$ 7,650,585$ 8,258,888$ 9,178,981$ Contributions in relation to the actuarially determined contribution (7,011,540) (7,834,050) (7,650,585) (8,258,888) (9,178,981) Contribution deficiency (excess)-$ -$ -$ -$ -$ Covered payroll1 13,737,311$ 11,770,766$ 7,618,673$ 5,630,861$ 5,788,525$ Contributions as a percentage of covered payroll.51.04% 66.56% 100.42% 146.67% 158.57% City of Vernon Required Supplementary Information (Unaudited) Schedule of Contributions - Pensions (Continued) For the Year Ended June 30, 2023 Last Ten Fiscal Years California Public Employees' Retirement System Defined Pension Plan - Safety Plan (Continued) 107 . . Item 11 Page 119 of 126 Fiscal year 2018 2019 2020 2021 Measurement period 2016-17 1 2017-18 2018-19 2019-20 Total OPEB liability Service cost 1,166,825$ 1,204,747$ 549,137$ 565,922$ Interest 1,879,025 2,063,052 1,641,230 1,699,197 Changes of benefit terms - - - (800,265) Differences between expected and actual experience - (6,680,583) - 206,148 Changes of assumptions (770,716) (7,657,196) (124,861) 579,724 Benefit payments, including refunds of employee contributions (838,818) (1,006,087) (1,158,450) (1,222,538) Net change in total pension liability 1,436,316 (12,076,067) 907,056 1,028,188 Total OPEB liability - beginning 35,919,535 37,355,851 25,279,784 26,186,840 Total OPEB liability - ending (a)37,355,851$ 25,279,784$ 26,186,840$ 27,215,028$ OPEB fiduciary net position Contributions - employer 1,898,138$ 2,065,407$ 2,989,393$ 3,915,406$ Net investment income (2,049) 65,276 258,220 44,684 Benefit payments, including refunds of employee contributions (838,818) (1,006,087) (1,158,450) (1,222,538) Administrative expense (4) (808) (629) (2,563) Other expenses - (1,400) - - Net change in plan fiduciary net position 1,057,267 1,122,388 2,088,534 2,734,989 Plan fiduciary net position - beginning - 1,057,267 2,179,655 4,268,189 Plan fiduciary net position - ending (b)1,057,267$ 2,179,655$ 4,268,189$ 7,003,178$ Plan net OPEB liability - ending (a) - (b)36,298,584$ 23,100,129$ 21,918,651$ 20,211,850$ Plan fiduciary net position as a percentage 2.83% 8.62% 16.30% 25.73% of the total OPEB liability Covered-employee payroll 33,511,114$ 33,496,565$ 35,182,647$ 31,958,957$ Plan net OPEB liability as a percentage of covered-employee payroll 108.32% 68.96% 62.30% 63.24% 1 Historical information is presented only for measurement periods after GASB 75 was implement in fiscal year of 2016-17 (measurement period of 2017-18). Additional years of information will be displayed as it becomes available. City of Vernon Required Supplementary Information (Unaudited) Schedule of Changes in Net Other Postemployment Benefits Liability and Related Ratios For the Year Ended June 30, 2023 Last Ten Fiscal Years1 Other Postemployment Benefits ("OPEB") Plan 108 . . Item 11 Page 120 of 126 Fiscal year 2022 2023 Measurement period 2020-21 2021-22 Total OPEB liability Service cost 303,057$ 365,851$ Interest 1,682,954 1,689,071 Changes of benefit terms - (78,332) Differences between expected and actual experience (677,446) (1,122,750) Changes of assumptions 66,075 565,573 Benefit payments, including refunds of employee contributions (1,199,826) (1,483,582) Net change in total pension liability 174,814 (64,169) Total OPEB liability - beginning 27,215,028 27,389,842 Total OPEB liability - ending (a)27,389,842$ 27,325,673$ OPEB fiduciary net position Contributions - employer 3,131,526$ 3,022,275$ Net investment income 2,084,288 (1,612,431) Benefit payments, including refunds of employee contributions (1,199,826) (1,483,582) Administrative expense (2,958) (2,903) Other expenses - - Net change in plan fiduciary net position 4,013,030 (76,641) Plan fiduciary net position - beginning 7,003,178 11,016,208 Plan fiduciary net position - ending (b)11,016,208$ 10,939,567$ Plan net OPEB liability - ending (a) - (b)16,373,634$ 16,386,106$ Plan fiduciary net position as a percentage 40.22% 40.03% of the total OPEB liability Covered-employee payroll 31,702,877$ 25,376,320$ Plan net OPEB liability as a percentage of covered-employee payroll 51.65% 64.57% Other Postemployment Benefits ("OPEB") Plan (Continued) City of Vernon Required Supplementary Information (Unaudited) Schedule of Changes in Net Other Postemployment Benefits Liability and Related Ratios (Continued) For the Year Ended June 30, 2023 Last Ten Fiscal Years1 109 . . Item 11 Page 121 of 126 Fiscal year 2017 2018 2019 2020 2021 Actuarially determined contribution -$ 2,692,868$ 2,692,898$ 1,931,700$ 1,538,693$ Contributions in relation to the actuarially determined contribution (1,898,138) (2,065,407) (2,989,393) (3,915,406) (3,131,526) Contribution deficiency (excess)(1,898,138)$ 627,461$ (296,495)$ (1,983,706)$ (1,592,833)$ Covered-employee payroll 33,511,114$ 33,496,565$ 35,182,647$ 31,958,957$ 31,702,877$ Contributions as a percentage of covered-employee payroll.2 5.66% 6.17% 8.50% 12.25% 9.88% 1 Notes to Schedule: Methods and assumptions used to determine contribution rates: Actuarial cost method Entry Age Normal Cost Method Amortization method Level percentage of payroll Asset valuation method Market valuation of assets Discount Rate 6.25% Payroll Growth 3.00% General Inflation Rate 2.5% per year Health Trend 5.6 in FY2023, step down 0.5% per year to 3.9% by 2076 City of Vernon Required Supplementary Information (Unaudited) Schedule of Contributions - Other Postemployment Benefits For the Year Ended June 30, 2023 Last Ten Fiscal Years1 Other Postemployment Benefits ("OPEB") Plan The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2022-23 were derived from the June 30, 2020 funding valuation report. Historical information is presented only for measurement periods after GASB 75 implementation in fiscal year of 2017-18 (measurement period of 2016-17). Additional years of information will be displayed as it becomes available. 110 . . Item 11 Page 122 of 126 Fiscal year 2022 2023 Actuarially determined contribution 1,538,693$ 1,402,612$ Contributions in relation to the actuarially determined contribution (2,933,295) (3,110,941) Contribution deficiency (excess)(1,394,602)$ (1,708,329)$ Covered-employee payroll 25,376,320$ 24,483,172$ Contributions as a percentage of covered-employee payroll.2 11.56% 12.71% City of Vernon Required Supplementary Information (Unaudited) Schedule of Contributions - Other Postemployment Benefits (Continued) For the Year Ended June 30, 2023 Last Ten Fiscal Years1 Other Postemployment Benefits ("OPEB") Plan (Continued) 111 . . Item 11 Page 123 of 126 This page intentionally left blank. 112 . . Item 11 Page 124 of 126 200 E. Sandpointe Avenue, Suite 600 Santa Ana, California 92707 REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Independent Auditors’ Report To the Honorable Mayor and Members of the City Council of the City of Vernon Vernon, California We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States (“Government Auditing Standards”), the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Vernon, California (the “City”), as of and for the year ended June 30, 2023, and the related notes to the basic financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated February 8, 2024. Report on Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (“internal control”) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the City’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified. . . Item 11 Page 125 of 126 To the Honorable Mayor and Members of the City Council of the City of Vernon Vernon, California Page 2 114 Report on Compliance and Other Matters As part of obtaining reasonable assurance about whether the City’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Santa Ana, California February 8, 2024 . . Item 11 Page 126 of 126 Vernon Public Utilities (The Electric, Gas, Water and Fiber Optics Enterprise Funds of the City of Vernon) Vernon, California Financial Statements and Independent Auditors’ Reports For the Year Ended June 30, 2023 . . Item 11 Page 1 of 96 . . Item 11 Page 2 of 96 City of Vernon Vernon Public Utilities For the Year Ended June 30, 2023 Table of Contents Page INTRODUCTORY SECTION (UNAUDITED): A Message From The General Manager of Vernon Public Utilities .................................................................... i FINANCIAL SECTION: Independent Auditors’ Report on the Audit of the Financial Statements .......................................................... 1 Management’s Discussion and Analysis (Required Supplementary Information) (Unaudited) ...................... 5 Basic Financial Statements: Statement of Net Position ........................................................................................................................... 14 Statement of Revenues, Expenses, and Changes in Net Position ............................................................... 17 Statement of Cash Flows ............................................................................................................................ 18 Notes to the Basic Financial Statements ..................................................................................................... 25 Required Supplementary Information (Unaudited): Schedule of Proportionate Share of the Net Pension Liability and Related Ratios ........................................... 54 Schedule of Plan Contributions – Pensions ....................................................................................................... 56 Schedule of Proportionate Share of the Net OPEB Liability and Related Ratios ............................................. 58 Schedule of Contributions – Other Postemployment Benefits .......................................................................... 60 Supplementary Information: Combining Statement of Net Position ............................................................................................................... 64 Combining Statement of Revenues, Expenses, and Changes in Net Position ................................................... 67 Combining Statement of Cash Flows ................................................................................................................ 68 . . Item 11 Page 3 of 96 This page intentionally left blank. . . Item 11 Page 4 of 96 i A Message From the General Manager Goes Here. . . Item 11 Page 5 of 96 ii . . Item 11 Page 6 of 96 iii . . Item 11 Page 7 of 96 iv ELECTRIC FUND Introduction Vernon Public Utilities (VPU) remains dedicated to its core mission of providing reliable, safe, and affordable energy while meeting California's clean energy goals. VPU is building a full-service utility that embraces emerging technologies and capitalizes on strategic opportunities. VPU goes beyond electricity, offering water, natural gas, and fiber optic services. As a publicly owned utility, it prioritizes customer focus, responsible operations, and a sustainable future for the Vernon community. With local control, VPU ensures transparency, competitive rates, and tailored policies to serve the community's needs. In partnership with the local community, VPU is shaping a sustainable energy future for Vernon. Awards The American Public Power Association (APPA) designates Reliable Public Power Provider recognition (RP3) to utilities that demonstrate exceptional proficiency in four key areas: safety, reliability, workforce development, and system improvement. Consistent with its mission, VPU strives for excellence in these areas. APPA has awarded VPU its highest – Diamond Level – RP3 designation for three consecutive terms, encompassing nine years from 2016 to 2025. VPU earned these honors by providing exceptionally reliable and safe electric service. VPU is one of only 26 of the more than 2,000 public power utilities across the United States to achieve Diamond Level RP3 designation from 2022 to 2025. APPA also awarded VPU the Safety Award for Excellence every year since 2018, recording no reportable safety incidents for 2023. Reliability VPU emphasizes operational reliability as a cornerstone of its strategic vision. VPU utilizes IEEE’s beta methodology to track reliability metrics to assess and enhance the resilience and dependability of VPU’s services. By tracking and analyzing key reliability indicators, VPU proactively identifies areas for improvement, allocates resources effectively, and implements targeted strategies to maintain an unwavering commitment to providing consistent and uninterrupted power supply to its valued customers. . . Item 11 Page 8 of 96 v Three Reliability Indicators VPU tracks three reliability indicators that the electric utility industry uses to assess and improve the performance of power distribution systems. System Average Interruption Frequency Index (SAIFI) Quantifies the frequency of power outages per customer within a year. System Average Interruption Duration Index (SAIDI) Measures the duration of power outages experienced by the average customer over a year. Customer Average Interruption Duration Index (CAIDI) Provides the average time it takes to restore power after an outage, calculated by dividing SAIDI by SAIFI. VPU leverages data and industry benchmarks to improve service quality, minimize downtime, and ensure a reliable power supply. VPU benchmarks its performance against data from the U.S. Energy Information Administration (EIA) to ensure alignment with industry standards and best practices. For the data year 2021, VPU’s average customer experienced 0.5 outages for 38.2 minutes. The restoration time was approximately 76.4 minutes. These metrics place VPU among the top 25 percent of the electric industry in reliability. Being in the top quartile of electric utility reliability benchmarking signifies VPU’s commitment to excellence, ensuring that the utility consistently delivers dependable service, promotes customer satisfaction, and contributes positively to the overall health of the community it serves. . . Item 11 Page 9 of 96 vi Cause of Outages Virtually all outages in the City of Vernon are from accidental causes. Contact with metallic balloons is the primary cause of outages (indicated as a “foreign object” in the chart below). The Other category includes single instances of storm damage, direct strike, and equipment damage. . . Item 11 Page 10 of 96 vii Energy Resources VPU’s generation portfolio continues to evolve with state mandates for renewable energy and zero- carbon generation. Vernon participates in the CAISO wholesale energy markets under a metered subsystem agreement (MSSA). Five years ago, natural gas generation from MGS and market purchases supplied approximately 59 percent of VPU’s energy resource mix. The remaining energy came from 7.7 percent nuclear, 1.6 percent large hydroelectric, and approximately 32 percent renewables. One of VPU’s central goals of the updated Integrated Resource Plan, approved by the City Council in October 2023, is to increase its renewable generation penetration to 60 percent by 2030 as directed by California statute. The chart below shows VPU’s Fiscal Year (FY) 2022-23 Energy Resource Mix. . . Item 11 Page 11 of 96 viii Natural Gas Resources Malburg Generating Station (MGS) MGS is a 139 MW combined-cycle (CC) plant in the City of Vernon. MGS includes two Siemens GTXI00 natural gas-fired combustion turbine generators (CTGs) and a steam turbine generator (STG). MGS has duct burners, evaporative inlet air coolers, and filters that enable the units to achieve higher levels of power output in selected modes of operation. H. Gonzales Generating Station Units 1 & 2 The H. Gonzales Generating Station Unit 1 and Unit 2, located within the City of Vernon, is a natural gas-fueled facility powered by two Allison 571-KA combustion turbines (CTs), each rated at 5.75 MW, operating solely as peaking units. Both CT units began commercial operation in 1988. Each unit is restricted by air quality regulators to run on natural gas for no more than six hours per day. . . Item 11 Page 12 of 96 ix Zero-Emission Resources Palo Verde Nuclear Station The Palo Verde Nuclear Generating Station (PVNGS) is in Tonopah, Arizona, approximately 55 miles west of Phoenix. It generates the largest capacity of electricity in the United States, with the second-largest rated capacity. The plant consists of three nuclear electric generating units totaling 3,937 MW. In 1981, VPU signed a “take or pay” contract with the Southern California Public Power Authority (SCPPA) for 11 MW of power from Palo Verde. Under the Power Purchase Agreement (PPA), VPU must pay for its proportionate share of power generated and operating and maintenance expenses, regardless of the amount of power taken. Hoover Dam Hydroelectric Power Plant The Hoover Dam Hydroelectric Power Plant is located on the Arizona-Nevada border, approximately 25 miles southeast of Las Vegas. This hydropower plant is part of the larger Hoover Dam facility, which was completed in 1935 and controls the flow of the Colorado River. The Hoover Dam facility consists of 17 generating units and two service generating units with a total installed capacity of 2,080 MW. In 1987, Vernon entered a PPA to purchase 22 MW of firm capacity from the Western Area Power Administration (WAPA). SCPPA and other contractor allocations of Hoover power have been extended for 50 years beyond the PPA’s original expiration in 2017, which now expires in 2067. . . Item 11 Page 13 of 96 x Renewable Energy Resources Puente Hills Landfill Gas Plant The Puente Hills Landfill Gas-to-Energy facility is a 46 MW conventional Rankine Cycle Steam Power Plant that uses landfill gas as fuel to generate electricity. The Los Angeles County Sanitation District (LACSD) constructed the facility and began full commercial operation in January 1987. SCPPA entered a PPA with LACSD for 43 MW of generating capacity from the facility. VPU, through SCPPA, is entitled to 10 MW of renewable capacity from the facility. The PPA expires on December 31, 2030. Astoria II Solar Photovoltaic Facility The Astoria II Solar PV facility is sited on approximately 840 acres between Los Angeles and Kern Counties, and interconnects with the CAISO system at the SCE Whirlwind Substation. The City of Vernon, in conjunction with five other SCPPA municipal utilities, participated in a PPA with Recurrent Energy to purchase the output from the Astoria II Solar facility for 20 years. The PPA entitled Vernon to 20 MW of capacity from January 2017 to December 2021. Starting in January 2022 and extending until the PPA’s expiration in December 2036, VPU is entitled to 30 MW of power. . . Item 11 Page 14 of 96 xi Antelope DSR 1 Solar PV Facility The Antelope DSR 1 Solar PV facility is in the City of Lancaster, Los Angeles County. It was developed by the Sustainable Power Group (sPower) and came online in December 2016. Through SCPPA, VPU owns a PPA with Antelope DSR 1 LLC (a subsidiary of sPower) for 25 MW of output, 50 percent of the facility’s 50 MW capacity, through December 31, 2036. In conjunction with the solar facility, the cities of Riverside and Vernon negotiated an energy storage option in the PPA, which provides for the potential to design, build, and operate an energy storage facility at the site when economically feasible. Desert Harvest 2 REC Solar PV Project On December 17, 2020, SCPPA executed a PPA with EDF Renewables for 70 MW of solar PV capacity from the Desert Harvest 2 Solar PV project. The project is a fixed-tilt PV system that interconnects at the Marketplace substation and is located on 1,200 acres of Bureau of Land Management (BLM) land in Desert Center, California. The REC + Index agreement serves the cities of Anaheim, Burbank, and Vernon. VPU is entitled to 17.14 percent of the Project’s output or about 12 MW. This PPA, which expires at the end of 2045, only provides renewable energy credits (RECs). . . Item 11 Page 15 of 96 xii Daggett Solar PV and BESS Project The Daggett Solar plus BESS project is a single-axis tracker 65 MW solar with a 33 MW 4-hour Lithium-Ion BESS. The commercial operation date (COD) was December 12, 2023. The project, located in the City of Daggett in San Bernardino County, is a portion of an approximately 482 MW solar PV facility. The project is being developed by Clearway Energy Group and is owned by Daggett Solar Power 2 LLC. On June 24, 2022, SCPPA executed a PPA for 65 MW for the cities of Vernon and Cerritos. The PPA entitles VPU to 60 MW of solar PV output and 30 MW of energy storage. The PPA expires on December 31, 2044. Sapphire Solar and BESS Project The Sapphire Solar project is a solar PV and BESS facility being developed by EDF Renewables. Located on 1,140 acres of private land in Riverside County, the project will generate 117 MW of solar power paired with a 59 MW 4-hour Lithium-Ion BESS with a total capacity of 236 MWh. The project will interconnect on an existing Desert Harvest transmission line and deliver to the CAISO System. The bundled energy products include renewable energy, RECs, Resource Adequacy, and other energy attributes. The estimated COD is December 31, 2026. VPU has executed a PPA for 39 MW of solar output combined with 19.67 MW of BESS. The PPA expires on December 1, 2046. . . Item 11 Page 16 of 96 xiii Distribution System Capital Improvement Plan Investing in infrastructure is crucial for a reliable electric utility. As such, Vernon proactively assesses its distribution system, identifying opportunities to bolster reliability, enhance safety, optimize efficiency, and increase operational flexibility. These upgrades will ensure a robust and adaptable electric distribution system, powering a brighter future for the City and its customers. For the past three years, from 2020 through 2023, VPU has been working on a distribution Capital Improvement Plan (CIP) focused on strengthening its infrastructure to prevent outages and grid resiliency to sustain reliability and maintain high service quality. The result is VPU’s Five-Year CIP, which is updated as part of the annual budget process. The plan focuses on infrastructure upgrades to help achieve a strategic vision that addresses its five-square-mile service territory and the unique industrial characteristics that make up the City. The plan defined strategies that involve in-depth evaluation of the condition of the electric system, performing detailed engineering analysis of distribution system capability and performance, and listed construction and upgrade projects to help transform the system into an intelligent, increasingly automated, and technologically advanced electric system. The CIP addresses the key areas and construction required for replacements or upgrades. The success of the CIP results in the improved electric system reliability provided to the City of Vernon residential and business customers. The plan also aims to reduce VPU's carbon footprint by removing greenhouse gas (GHG) emissions from the system. The plan includes replacing switches and circuit breakers that use sulfur hexafluoride (SF6) for insulation and . . Item 11 Page 17 of 96 xiv leverages new technologies for replacing and upgrading these units. The plan aims to increase system reliability for the local electric grid and environmental improvements for a sustainable future for the community. VPU estimates that the FY 2024-25 CIP is $25 million. . . Item 11 Page 18 of 96 xv Customer Service VPU continues to educate its business community on the importance of efficiency through its no-cost energy audit services. Over the years, businesses have successfully leveraged VPU's energy audit services to identify various efficiency opportunities. The utility's longstanding Custom Incentive Program has consistently provided incentives for commercial electric customers that implement efficiency upgrades that produce above building code savings. For FY 2022-23, VPU's energy efficiency programs generated 3,157 MWh of energy savings, along with $212,934 of efficiency rebates issued to VPU customers for lighting retrofits and refrigeration control upgrades. VPU has also been a key partner throughout the customer’s electrification journey, providing incentives and expertise in the transition towards increased sustainability and GHG emission reduction. In particular, the utility issued electric vehicle and charger rebates for customers who switched to all-electric equipment. In July 2023, the utility also opened its first fast charging depot at 3805 S. Soto Street to support the growing number of electric vehicles on the road and help expand public charging infrastructure in the region. VPU customers who are in the cold storage and food processing business sectors continue to explore refrigeration control upgrades to achieve energy savings. The optimization of refrigeration controls often involves system hardware and software upgrades to maximize efficiency. To help support these complex energy efficiency projects, VPU works with a third-party engineering consultant to conduct the evaluation, measurement, and verification studies to confirm the validity of the savings generated. In addition, LED Lighting retrofits continue to account for a majority of energy savings through VPU's Customized Incentive Program. Customers with 24/7 operations and large warehouses can realize significant savings by upgrading from non-LED to LED lighting technology. . . Item 11 Page 19 of 96 xvi WATER FUND Introduction The water supply in Vernon is extremely important for the well-being of the public, economic growth, and environmental sustainability. The VPU Water Division has been working for over a century to ensure that this critical infrastructure is able to provide safe, dependable, and affordable water services to more than 800 customers. They distribute around 1.8 billion gallons of water annually. To accomplish its mission, the VPU Water Division consists of professionals who are dedicated to maintaining the water infrastructure, responding to any issues as soon as possible, and proactively planning for the future needs of the water system. Their knowledge and commitment guarantee that the water delivered meets the highest quality and service standards. By prioritizing reliability, sustainability, and affordability, the VPU Water Division team ensures that the Water Fund continues to succeed financially and operationally. Reliability With a network of 7 Wells, 2 booster plants, and reservoirs with a total capacity of 16.6 million gallons spanning the City, as well as a direct connection to the Metropolitan Water District, the VPU Water Division ensures a consistent supply of high-quality water even during periods of peak demand or drought. This commitment to reliability is further bolstered by a comprehensive water quality monitoring program that meets rigorous Federal and State regulations. The VPU Water Division pursues innovative technologies and best practices to ensure high-quality and reliable water service. This includes a bidirectional flushing program, valve exercising programs, prompt repair of leaks to save water loss, and a state-of-the-art real-time UV spectrometer water quality analyzer. . . Item 11 Page 20 of 96 xvii Capital Improvement Plan The Water Fund continues to implement major capital investments that began in FY 2019-20. The VPU Water Division has made significant capital investments in such projects as the construction of the first new groundwater well since 1989, Well 22; well and reservoir rehabilitation; and an entirely new Supervisory Control and Data Acquisition (SCADA) system along with electrical and fiber service upgrades to ensure the continued reliability of the Water system. This eight-year capital investment program represents a total investment of almost $30 million. . . Item 11 Page 21 of 96 xviii GAS FUND Introduction The VPU Gas Division is a reliable and cost-effective natural gas provider for businesses and residents in Vernon. They operate a state-of-the-art natural gas distribution and transmission system that serves over 125 customers. The Division is committed to providing its customers safe, reliable, and affordable natural gas service and has been nationally recognized for its strong safety record. The VPU Gas Division is staffed with highly qualified technicians who are available 24/7 to respond to emergencies. In addition to providing natural gas service, the VPU Gas Division offers various energy efficiency rebate programs and incentives to help customers reduce their GHG emissions. The services offered by the VPU Gas Division include: Natural Gas Service Provides natural gas services to residential, commercial, and industrial customers. Energy Efficiency Programs Offers a variety of energy efficiency programs and incentives to help customers reduce their GHG emissions. Leak Detection and Repair A team of experienced technicians who can detect and repair leaks immediately to ensure the continued reliability and safety of customers. Awards The VPU Gas Division has received the 2021 Safety Management Excellence Award and the Safety Award for calendar years 2018, 2020, 2021, and 2022 from the American Public Gas Association. Reliability As the only public utility in the state with a high-pressure natural gas transmission pipeline and one of the largest public gas systems by volume in the United States, the VPU Gas Division performs an annual assessment of its Integrity Management Plan and routinely surveys its gas system for compliance with . . Item 11 Page 22 of 96 xix regulatory requirements. Further, the VPU Gas Division annually conducts joint training with the Vernon Police Department and the Los Angeles County Fire Department to provide a continued overall understanding of the City’s natural gas system. Capital Projects During FY 2022-23, the VPU Gas Division updated its remote-access SCADA system by installing electronic recording devices (ERX) in each regulator station. This new system allows for live monitoring of transmission and distribution pressures, as well as monitoring of temperatures and alarms. Additionally, the high-pressure transmission pipeline system at the Seville lateral underwent a guided-wave ultrasonic test, and some gouges were discovered. The system was swiftly repaired, and the lateral was placed back online. Lastly, the VPU Gas Division conducted a systemwide inspection of all transmission and distribution valves. This critical project focused on maintenance to prevent valve leaks, as required by federal regulations. Gas Energy Efficiency Rebate The VPU Gas Division is dedicated to supporting its commercial and industrial gas customers in their efforts to decrease energy consumption and GHG emissions. To achieve this, the division provides an Energy Efficiency Rebate Program, which assists customers in saving money, improving energy efficiency, and reducing GHG emissions. The rebate covers a wide range of projects, such as upgrading to high- efficiency equipment, implementing energy-saving retrofits, and replacing customer fleets for lower or zero-emission vehicles and forklifts. . . Item 11 Page 23 of 96 xx FIBER OPTICS FUND Introduction The VPU Fiber Optics Division offers high-speed fiber optic internet service to residents and businesses in Vernon. The service is up to 5 times faster than AT&T and has a dedicated service line for businesses and residents. Fiber Internet includes 24-hour customer care technical support, consistent bi-directional high-speed connection, 99.9% up-time, and Dark Fiber connections for lease. Vernon customers have access to a high-quality and reliable internet service, which is constantly monitored in real-time to ensure a stable connection. The dedicated support team is available 24/7 to swiftly resolve any issues that may arise. Customers are assured reliable connectivity and significantly faster internet speeds and bandwidth due to fiber optic cables. Significant benefits of the VPU Fiber Optics Division services include: Smart Grid Infrastructure Support Fiber optic networks support real-time data collection, fault detection, and remote control of grid components, improving grid stability and reducing power outages. Diversification of Revenue Streams and Community Development Fiber-based internet services generate additional revenue for VPU and promote economic growth by attracting businesses to the City. Community Development and Economic Growth Access to high-speed internet is essential for economic development and attracting businesses to the City. The VPU Fiber Optic Division is vital in bridging the digital divide by providing fiber-based internet services to underserved areas. . . Item 11 Page 24 of 96 xxi Capital Projects In 2023, the VPU Fiber Optics Division underwent a major upgrade of the entire fiber equipment system. This upgrade included the installation of cutting-edge technology and advanced equipment, resulting in faster internet speeds and higher reliability for customers. The upgraded system has significantly improved the data transmission rate, reducing latency and increasing bandwidth. The fiber system upgrade was a strategic move by the VPU Fiber Optics Division to meet the growing demand for high-speed internet services. VPU’s fiber upgrade significantly increased capacity, with the system now capable of handling 100 GB and offering customers up to 1GB fiber circuit service. With this upgrade, the fiber system is now capable of providing seamless and uninterrupted internet services to more customers, even during peak usage hours. Moreover, the upgraded fiber system not only meets the current needs of customers but also secures the future growth of the fiber network. The new equipment and technology installed during the upgrade are designed to extend the life expectancy of the system and support future expansion and upgrades. The VPU Fiber Optics Division can confidently meet the increasing demand for high-speed internet services, ensuring the continued reliability and overall satisfaction of our customers. . . Item 11 Page 25 of 96 This page intentionally left blank. . . Item 11 Page 26 of 96 200 E. Sandpointe Avenue, Suite 600 Santa Ana, California 92707 INDEPENDENT AUDITORS’ REPORT To the Honorable Mayor and Members of the City Council of the City of Vernon Vernon, California Report on the Audit of the Financial Statements Opinion We have audited the accompanying financial statements of the Vernon Public Utilities (the “VPU”) of the City of Vernon, California (the “City), as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise the VPU’s basic financial statements as listed in the table of contents. In our opinion, the accompanying financial statements referred to above present fairly, in all material respects, the financial position of the VPU as of June 30, 2023, and the change in financial position, and cash flows for the year then ended, in accordance with accounting principles generally accepted in the United States of America. Basis for Opinion We conducted our audit in accordance with auditing standards generally accepted in the United States of America (“GAAS”), and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States (“Government Auditing Standards”). Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the VPU and to meet our other ethical responsibilities, in accordance with the relevant requirements relating to out audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Emphasis of Matter As discussed in Note 1 to the financial statements, the financial statements present only the basic financial statements of the VPU and do not purport to, and do not present fairly the financial statements of the City as of June 30, 2023, the changes in its financial statements, or its cash flows for the year then ended, in accordance with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter. Responsibility of Management for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. . . Item 11 Page 27 of 96 To the Honorable Mayor and Members of the City Council of the City of Vernon Vernon, California Page 2 2 Auditors’ Responsibility for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with GAAS and Government Auditing Standards, we:  exercise professional judgment and maintain professional skepticism throughout the audit.  identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.  obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed.  evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit. Required Supplementary Information Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis, the Schedule of the Proportionate Share of the Net Pension Liability and Related Ratios, the Schedule of the Contributions - Pension, the Schedule of Proportionate Share of the Net Other Postemployment Benefits Liability and Related Ratios, and the Schedule of Contributions – Other Postemployment Benefits be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by Government Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the Required Supplementary Information in accordance with GAAS, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. . . Item 11 Page 28 of 96 To the Honorable Mayor and Members of the City Council of the City of Vernon Vernon, California Page 3 3 Supplementary Information Our audit was conducted for the purpose of forming opinion on the financial statements that collectively comprise the VPU’s basic financial statements. The Combining and Individual Fund Financial Statements are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with GAAS. In our opinion, the Combining and Individual Fund Financial Statements are fairly stated, in all material respects, in relation to the basic financial statements as a whole. Other Information Management is responsible for the other information included in this annual report. The other information comprises the Introductory Section but does not include the basic financial statements and our auditors’ report thereon. Our opinion on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated February 8, 2024 on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance. Santa Ana, California February 8, 2024 . . Item 11 Page 29 of 96 4 This page intentionally left blank. . . Item 11 Page 30 of 96 City of Vernon, California Vernon Public Utilities Management’s Discussion and Analysis (Unaudited) June 30, 2023 5 The management of the Vernon Public Utilities (“VPU”), the electric, gas, water, and fiber optics utilities of the City of Vernon (the “City”), offers the following overview and analysis of the basic financial statements of the VPU for the fiscal year ending June 30, 2023. Management encourages readers to utilize information in the Management’s Discussion and Analysis (“MD&A”) in conjunction with the accompanying basic financial statements. OVERVIEW OF BASIC FINANCIAL STATEMENTS The MD&A is intended to serve as an introduction to the VPU’s basic financial statements. Included as part of the financial statements are three separate statements. The statement of net position presents information on the VPU’s total assets and deferred outflows of resources and total liabilities and deferred inflows of resources, with the difference between the two reported as net position. The statement of revenues, expenses, and changes in net position presents information showing how the VPU's net position changed during the most recent fiscal year. Financial results are recorded using the accrual basis of accounting. Under this method, all changes in net position are reported as soon as the underlying events occur, regardless of the timing of cash flows. Thus, revenues and expenses reported in this statement for some items may affect cash flows in a future fiscal period (examples include billed but uncollected revenues and employee earned but unused vacation leave). The statement of cash flows reports cash receipts, cash payments, and net changes in cash and cash equivalents from operations, noncapital financing, capital and related financing, and investing activities. The notes to the basic financial statements provide additional information essential to understand the data provided in the financial statements fully. . . Item 11 Page 31 of 96 City of Vernon, California Vernon Public Utilities Management’s Discussion and Analysis (Unaudited) (Continued) June 30, 2023 6 FINANCIAL HIGHLIGHTS Net Position The table below summarizes VPU’s net position as of the current fiscal year, which ended June 30, 2023, and the prior fiscal year, which ended June 30, 2022. The current year’s summary details can be found on pages 18-19 of this report. City of Vernon Vernon Public Utilities Net Position June 30, 2023 and 2022 2023 2022 $ Variance Current and other assets $ 189,025,510 $ 190,992,713 $ (1,967,203) Restricted and other assets 39,505,815 48,782,041 (9,276,226) Capital assets 465,066,379 458,427,644 6,638,735 Total assets 693,597,704 698,202,398 (4,604,694) 17,300,862 7,934,285 9,366,577 Current liabilities 79,213,504 77,463,438 1,750,066 Long term liabilities 395,093,373 434,250,999 (39,157,626) Total liabilities 474,306,877 511,714,437 (37,407,560) 3,210,139 12,001,382 (8,791,243) Net investment in capital assets 191,510,736 168,787,837 22,722,899 Restricted for debt service 34,116,035 32,836,544 1,279,491 Restricted for AB1890 2,933,017 - 2,933,017 Unrestricted (deficit) 4,821,762 (19,203,517) 24,025,279 Total net position $ 233,381,550 $ 182,420,864 $ 50,960,686 Net Position Deferred Inflows of Resources Assets Deferred Outflows of Resources Liabilities . . Item 11 Page 32 of 96 City of Vernon, California Vernon Public Utilities Management’s Discussion and Analysis (Unaudited) (Continued) June 30, 2023 7 The assets and deferred outflows of resources of the VPU exceeded its liabilities and deferred inflows of resources at the close of the most recent fiscal year by $233,381,550 (net position). The category of VPU’s net position with the largest balance totaling $191,510,736 represents resources that are invested in capital assets. The second category, restricted for debt service totaling $34,116,035, represents resources that are subject to external restrictions on how they can be used, in this case, bond debt. The third category, restricted for AB1890 totals $2,933,017, which is used for the electric fund public benefits obligations. The remaining category of total net position totaling $4,821,762 represents the unrestricted net position. Activities, Net Position  Total current assets decreased by ($1,984,869) from the prior year mainly due to a decrease in cash and cash investments of ($3,586,615) offset by an increase in accounts receivable, net of allowance, of $498,361 and an increase in accrued unbilled revenue of $745,944.  Capital assets increased by $6,638,735, net of depreciation, from the prior year mainly due to acquisitions of new equipment and facility improvements in the electric fund and water fund. Additional information can be found in Note 5 of this report.  Total liabilities decreased by $37,407,560 from the prior year, primarily due to a decrease in bonds payable of $59,468,018 and offset by an increase of $19,798,654 in the net pension liability.  The VPU’s total net position in fiscal year 2022-23 was $233,381,550, which increased by $50,960,686 from the prior year due to an increase in the net investment in capital assets by $22,722,899, an increase in the funds restricted for debt service of $1,279,491, restricted funds for AB 1890, the electric fund public benefits program, of $2,933,017, and an increase of the unrestricted (deficit) position of $24,025,279. . . Item 11 Page 33 of 96 City of Vernon, California Vernon Public Utilities Management’s Discussion and Analysis (Unaudited) (Continued) June 30, 2023 8 Changes in Net Position The table below summarizes the VPU’s changes in net position over the current and prior fiscal years. The details of the current year’s changes in net position can be found on page 21 of this report. City of Vernon Vernon Public Utilities Net Position June 30, 2023 and 2022 2023 2022 $ Variance Charges for services $ 262,570,096 $ 238,570,758 $ 23,999,338 Cost of sales 175,871,325 170,314,573 5,556,752 Depreciation 24,226,844 17,904,210 6,322,634 Total operating expenses 200,098,169 188,218,783 11,879,386 Operating income 62,471,927 50,351,975 12,119,952 Intergovernmental - 865,403 (865,403) Investment income 4,713,298 285,622 4,427,676 Net decrease in fair value of investments (1,626) (8,231) 6,605 Interest expense (14,742,214) (14,163,484) (578,730) Transfer Out (491,542) - (491,542) Gain (loss) on disposition of assets (989,157) (2,315,926) 1,326,769 Net nonoperating revenues (expenses) (11,511,241) (15,336,616) 3,825,375 50,960,686 35,015,359 15,945,327 182,420,864 147,405,505 35,015,359 $ 233,381,550 $ 182,420,864 $ 50,960,686 Nonoperating revenues (expenses) Change in net position Net position - beginning of year Net position - end of year Operating Revenues Operating Expenses VPU’s operating income of $62,471,927, less non-operating expenses of $11,511,241, resulted in a change in net position of $50,960,686 during the current year. This change in net position is primarily due to higher billed electric fund revenue, the management and control of operating expenses, and higher investment income as a result of favorable market conditions. . . Item 11 Page 34 of 96 City of Vernon, California Vernon Public Utilities Management’s Discussion and Analysis (Unaudited) (Continued) June 30, 2023 9 CAPITAL ASSET AND DEBT ADMINISTRATION Capital Assets The VPU’s investment in capital assets as of June 30, 2023 amounted to $465,066,379 (net of accumulated depreciation and deletions). This investment in capital assets includes land, intangible assets, construction in progress, building, utilities system improvements, and machinery and equipment. The total increase in the VPU's investment in capital assets for the current fiscal year was $6,638,735, net of depreciation and deletions. Additional information on the VPU's capital assets can be found in Note 5 of this report. Outstanding Debt As of June 30, 2023, the following debt remains outstanding:  $36,870,000 City of Vernon Electric System Revenue Bonds, 2008 Taxable Series A  $5,340,000 City of Vernon Electric System Revenue Bonds, 2012 Taxable Series B  $89,180,000 City of Vernon Electric System Revenue Bonds, 2015 Taxable Series A  $19,305,000 City of Vernon Electric System Revenue Bonds, 2020 Taxable Series A  $153,435,000 City of Vernon Electric System Revenue Bonds, 2021 Taxable Series A  $52,070,000 City of Vernon Electric System Revenue Bonds, 2022 Taxable Series A  $14,350,000 City of Vernon Water System Reserve Bonds, 2020 Taxable Series A The City of Vernon Electric System Revenue Bonds, 2008 Taxable Series A, were issued to provide funds to (i) finance the cost of certain capital improvements to the City’s Electric System, (ii) fund a deposit to the Debt Service Reserve Fund, and (iii) to pay costs of issuance of the 2008 Bonds. The City of Vernon Electric System Revenue Bonds, 2012 Taxable Series B, were issued to provide funds to (i) refund the $28,680,000 aggregate principal amount of 2009 Bonds maturing on August 1, 2012, (ii) to pay a portion of the Costs of the 2012 Project, and (iii) to pay costs of issuance of the 2012 Taxable Series B Bonds. The City of Vernon Electric System Revenue Bonds, 2015 Taxable Series A, were issued to provide funds to (i) refund a portion of the Outstanding Electric System Revenue Bonds, 2009 Series A; (ii) finance the costs of certain Capital Improvements to the City’s Electric System by reimbursing the Electric System for the prior payment of such Costs from the Light and Power Fund; (iii) fund a deposit to the Debt Service Reserve Fund; and (iv) pay costs of issuance of the 2015 Bonds. The City of Vernon Electric System Revenue Bonds, 2020 Taxable Series A, were issued to provide funds to (i) finance the acquisition and construction of certain capital improvements to the Electric System of the City, (ii) to refund all the City’s outstanding Electric System Revenue Bonds, 2009 Series A, and (iii) to pay costs of issuance of the 2020 Bonds. . . Item 11 Page 35 of 96 City of Vernon, California Vernon Public Utilities Management’s Discussion and Analysis (Unaudited) (Continued) June 30, 2023 10 The City of Vernon Electric System Revenue Bonds, 2021 Taxable Series A, were issued to provide funds: (i) to pay the costs of the acquisition by the City of Vernon of a 134-megawatt natural gas-fired generating facility located within the City limits on land owned by the City, together with certain related electrical interconnection facilities and other assets, property, and contractual rights, (ii) to fund a deposit to the Debt Service Reserve Fund in satisfaction of the Debt Service Reserve Requirement, and (iii) to pay costs of issuance of the 2021 Bonds. The City of Vernon Electric System Revenue Bonds, 2022 Taxable Series A, were issued to (i) refund and defease all the City’s outstanding Electric System Revenue Bonds, 2012 Series A and a portion of the City’s outstanding Electric System Revenue Bonds, 2012 Taxable Series B and (ii) to pay costs of issuance of the 2022 Bonds. As of June 30, 2023, the following Water Fund debt remains outstanding:  $14,350,000 City of Vernon Water System Revenue Bonds, 2020 Taxable Series A  $1,081,395 City of Vernon agreement with the Water Replenishment District of Southern California The City of Vernon Water System Revenue Bonds 2020, Taxable Series A, were issued to provide funds to i) finance the acquisition and construction of certain capital improvements to the Water System of the City, (ii) purchase a municipal bond debt service reserve insurance policy for deposit in the Reserve Fund in satisfaction of the Reserve Requirement, and (iii) to pay costs of issuance of the 2020 Bonds. As of June 30, 2023, the ratings on all Electric System Revenue Bonds of the City were BBB+/Stable by S&P and Baa1/Stable by Moody’s. The rating on Water System Revenue Bonds is A-/Stable by S&P. Additional information on the VPU's long-term debt can be found in Note 6 of this report. ECONOMIC FACTORS AND NEXT YEAR’S BUDGET AND RATES These factors were considered in preparing the VPU’s FY 2023-24 operating and capital budgets.  VPU is committed to providing dependable, high-quality electric, water, natural gas, and fiber services at the lowest competitive rates and the highest standards for reliability.  VPU continues to respond to inflation and supply chain issues, including higher energy, natural gas, materials and supplies, chemicals, and construction costs to expand and maintain the generation, transmission, and distribution infrastructure to continue to provide exceptionally reliable service.  In support of the City’s business development plans, VPU continues to collaborate with City staff to attract new businesses and industries to Vernon, especially in the development of green commerce. VPU continues to implement its five-year capital plan as well as VPU’s rate strategy that was approved by City Council in August 2023. City Council approved VPU’s Integrated Resource Plan in October 2023. As part of managing VPU’s operating expenses, VPU continues to optimize the operations of the Malburg Generating Station, which continues to result in savings for the City. . . Item 11 Page 36 of 96 City of Vernon, California Vernon Public Utilities Management’s Discussion and Analysis (Unaudited) (Continued) June 30, 2023 11 REQUESTS FOR INFORMATION This report is designed to provide an overview of the VPU electric, gas, water, and fiber optics utilities of the City of Vernon. Questions concerning the financial results can be addressed to the Finance Department, City of Vernon, 4305 Santa Fe Avenue, Vernon, California, 90058. . . Item 11 Page 37 of 96 12 This page intentionally left blank. . . Item 11 Page 38 of 96 FINANCIAL STATEMENTS 13 . . Item 11 Page 39 of 96 ASSETS Current assets: Cash and investments 153,374,024$ Accounts receivable, net 14,760,699 Interest receivable 376,475 Accrued unbilled revenue 19,771,908 Due from other government 8,829 Due from the City of Vernon 36 Prepaid items 163,337 Inventory 570,202 Total current assets 189,025,510 Noncurrent assets: Restricted cash and investments 36,427,615 Prepayment to Southern California Public Power Authority 977,070 Deposits 2,101,130 Capital assets: Capital assets, not being depreciated 75,215,406 Capital assets, being depreciated, net 389,850,973 Total capital assets, net 465,066,379 Total noncurrent assets 504,572,194 Total assets 693,597,704 DEFERRED OUTFLOWS OF RESOURCES Pension related items 14,399,006 Other postemployment benefits related items 1,170,494 Deferred charges on refunding 1,731,362 Total deferred outflows of resources 17,300,862 (Continued) City of Vernon June 30, 2023 Statement of Net Position Vernon Public Utilities See accompanying Notes to the Basic Financial Statements. 14 . . Item 11 Page 40 of 96 LIABILITIES Current liabilities: Accounts payable 15,397,491 Accrued wages and benefits 422,751 Accrued interest payable 7,064,261 Due to other City funds 3,045,195 Customer deposits payable 660,943 Compensated absences - due within one year 383,328 Bonds payable - due within one year 52,100,000 Note payable - due within one year 139,535 Total current liabilities 79,213,504 Noncurrent liabilities: Compensated absences - due within one year 766,656 Bonds payable - due within one year 353,244,291 Note payable - due within one year 941,860 Net pension liability 36,362,766 Net other postemployment benefits liability 3,777,800 Total noncurrent liabilities 395,093,373 Total liabilities 474,306,877 DEFERRED INFLOWS OF RESOURCES Pension related items 1,819,920 Other postemployment benefits related items 1,390,219 Total deferred inflows of resources 3,210,139 NET POSITION Net investment in capital assets 191,510,736 Restricted for: Debt service 34,116,035 Assembly Bill 1890 2,933,017 Unrestricted 4,821,762 233,381,550$ (Concluded) Vernon Public Utilities Total net position June 30, 2023 Statement of Net Position (Continued) City of Vernon See accompanying Notes to the Basic Financial Statements. 15 . . Item 11 Page 41 of 96 This page intentionally left blank. 16 . . Item 11 Page 42 of 96 OPERATING REVENUES: Charges for services 262,570,096$ Total operating revenues 262,570,096 OPERATING EXPENSES: Cost of sales 175,871,325 Depreciation expense 24,226,844 Total operating expenses 200,098,169 OPERATING INCOME 62,471,927 NONOPERATING REVENUES (EXPENSES): Investment income 4,713,298 Net decrease in fair value of investments (1,626) Interest expense (14,742,214) Transfers out to the City of Vernon (491,542) Loss on disposal of assets (989,157) Total nonoperating revenues (expenses)(11,511,241) CHANGE IN NET POSITION 50,960,686 NET POSITION: Beginning of year 182,420,864 End of year 233,381,550$ City of Vernon Statement of Revenues, Expenses, and Changes in Net Position Vernon Public Utilities For the Year Ended June 30, 2023 See accompanying Notes to the Basic Financial Statements. 17 . . Item 11 Page 43 of 96 CASH FLOWS FROM OPERATING ACTIVITIES: Cash receipts from customers and users 260,426,084$ Cash paid to suppliers for goods and services (159,102,747) Cash paid to employees for services (16,660,655) Net cash provided by operating activities 84,662,682 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Transfer to the City (491,542) Receipt from other funds 7,203,122 Payment to other funds (6,930,255) Net cash (used in) noncapital financing activities (218,675) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Acquisition of capital assets (31,907,031) Proceed from sale of capital assets 52,295 Principal paid on long-term debt (50,499,535) Interest paid on long-term debt (20,056,214) Net cash (used in) capital and related financing activities (102,410,485) CASH FLOWS FROM INVESTING ACTIVITIES: Interest received 4,424,394 Net cash provided by investing activities 4,424,394 Net (decrease) in cash and ash equivalents (13,542,084) CASH AND CASH EQUIVALENTS: Beginning of year 203,343,723 End of year 189,801,639$ CASH AND CASH EQUIVALENTS: Cash and investment 153,374,024$ Restricted cash and investment 36,427,615 Total cash and cash equivalents 189,801,639$ (Continued) City of Vernon Statement of Cash Flows Vernon Public Utilities For the Year Ended June 30, 2023 See accompanying Notes to the Basic Financial Statements. 18 . . Item 11 Page 44 of 96 OPERATING INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES: Operating income 62,471,927$ Adjustments to reconcile operating income to net cash provided by operating activities: Depreciation 24,226,844 Change in assets and liabilities: (Increase) decrease in accounts receivable (498,361) (Increase) decrease in accrued unbilled revenue (745,944) (Increase) decrease in inventories and prepaid items (61,298) (Increase) decrease in customer deposits (899,707) (Increase) decrease in deferred outflows of resources related to pension (9,060,209) (Increase) decrease in deferred outflows of resources related to OPEB (508,351) Increase (decrease) in accounts payable (2,075,018) Increase (decrease) in accrued wages and benefits 16,147 Increase (decrease) in deposits payable 160,775 Increase (decrease) in compensated absences (68,421) Increase (decrease) in net pension liabilities 19,798,654 Increase (decrease) in OPEB liabilities 696,887 Increase (decrease) in deferred inflows of resources related to pension (8,603,550) Increase (decrease) in deferred inflows of resources related to OPEB (187,693) Total adjustment 22,190,755 Net cash provided by operating activities 84,662,682$ (Concluded) City of Vernon Vernon Public Utilities Statement of Cash Flows (Continued) For the Year Ended June 30, 2023 See accompanying Notes to the Basic Financial Statements. 19 . . Item 11 Page 45 of 96 This page intentionally left blank. 20 . . Item 11 Page 46 of 96 21 NOTES TO THE BASIC FINANCIAL STATEMENTS . . Item 11 Page 47 of 96 22 This page intentionally left blank. . . Item 11 Page 48 of 96 City of Vernon Vernon Public Utilities Index to the Notes to the Basic Financial Statements For the Year Ended June 30, 2023 23 Note 1 – Summary of Significant Accounting Policies ....................................................................................... 25 A. Financial Reporting Entity ...................................................................................................................... 25 B. Basis of Accounting and Measurement Focus ........................................................................................ 25 C. Pooled Cash ............................................................................................................................................. 26 D. Cash, Cash Equivalents and Investments ................................................................................................ 26 E. Fair Value Measurement ......................................................................................................................... 26 F. Interfund Transactions ............................................................................................................................. 26 G. Receivables.............................................................................................................................................. 26 H. Prepaid Items ........................................................................................................................................... 27 I. Capital Assets .......................................................................................................................................... 27 J. Deferred Outflows and Inflows of Resources ......................................................................................... 27 K. Compensated Absences ........................................................................................................................... 27 L. Long-Term Debt ...................................................................................................................................... 28 M. Pensions ................................................................................................................................................... 28 N. Postemployment Benefits Other than Pensions (OPEB) ......................................................................... 28 O. Net Pension ............................................................................................................................................. 29 P. Use of Estimates ...................................................................................................................................... 29 Note 2 – Cash and Cash Equivalents ................................................................................................................... 29 A. Equity in the Cash Pool of the City of Vernon ........................................................................................ 30 B. Investments.............................................................................................................................................. 30 C. Local Agency Investment Fund (“LAIF”) .............................................................................................. 30 D. Fair Value Measurement ......................................................................................................................... 31 E. Risk Disclosures ...................................................................................................................................... 31 Note 3 – Accounts Receivable ............................................................................................................................... 32 Note 4 – Interfund Transactions .......................................................................................................................... 33 A. Due From/To Other City Funds .............................................................................................................. 33 B. Transfers From/To Other City Funds ...................................................................................................... 33 Note 5 – Capital Assets .......................................................................................................................................... 33 Note 6 – Long-Term Debt ..................................................................................................................................... 34 Note 7 – Compensated Absences .......................................................................................................................... 40 Note 8 – Risk Management ................................................................................................................................... 40 Note 9 – Pension Plan ............................................................................................................................................ 41 A. General Information about the Pension Plans ......................................................................................... 41 B. Net Pension Liabilities, Pension Expenses, and Deferred Net Outflows/Inflows of Resources Related to Pensions ........................................................................ 43 . . Item 11 Page 49 of 96 City of Vernon Vernon Public Utilities Index to the Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023 24 Note 10 – Other Postemployment Benefits (OPEB) ........................................................................................... 47 A. General Information about the OPEB Plan ............................................................................................. 47 B. Net OPEB Liabilities, OPEB Expenses, and Deferred Outflows/Inflows of resources related to OPEB .............................................................................................................. 48 Note 11 – Southern California Public Power Authority .................................................................................... 50 A. Take or Pay Contract ............................................................................................................................... 50 B. Power Purchase Commitments ................................................................................................................ 51 . . Item 11 Page 50 of 96 City of Vernon Vernon Public Utilities Notes to the Basic Financial Statements For the Year Ended June 30, 2023 25 Note 1 – Summary of Significant Accounting Policies The accompanying financial statements present only the Vernon Public Utilities (“VPU”) of the City of Vernon, California (the “City”), and do not present fairly the financial position and results of the operations of the City. The VPU accounts for the independent operations and the maintenance of the City’s electric, gas, water, and fiber optics utilities. A fund, or utility, administered by the VPU is an independent fiscal and accounting entity with a self-balancing set of accounts recording resources, related liabilities, obligations, reserves, and equities, segregated for the purpose of carrying out specific activities or attaining certain objectives in accordance with special regulations, restrictions, or limitations. For additional information regarding the City, refer to the City’s annual financial report. The financial statements of the VPU have been prepared in conformity with the U.S. generally accepted accounting principles (“U.S. GAAP”). The Governmental Accounting Standards Board (“GASB”) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The VPU significant accounting policies are described below. A. Financial Reporting Entity Ordinance No. 1242, adopted May 16, 2017, requires each utility of the City to be independent with its assets, liabilities, and equities segregated, budgeted, and accounted for in separate funds. Ordinance No. 1240, adopted March 21, 2017, consolidates all utilities-related services under the management of the stand-alone entity “Vernon Public Utilities” for Ordinance No. 1242, adopted May 16, 2017, requires each utility of the City to be independent with its assets, liabilities, and equities segregated, budgeted, and accounted for in separate funds. Ordinance No. 1240, adopted March 21, 2017, consolidates all utilities-related services under the management of the stand-alone entity “Vernon Public Utilities” for better oversight and management of the day-to-day activities of such independent utilities. Each of the City’s utilities, namely the electric, gas, water, and fiber optics utilities, were established by the City under and by virtue of the City Charter and the City Code enacted in 1988. Prior to July 1, 2016, the electric and gas utilities were consolidated and reported as the Light & Power Enterprise for financial reporting purposes. Ordinance No. 1242 continues to require each utility to be independent with its assets, liabilities, and equities segregated, budgeted, and accounted for in separate funds, while Ordinance No. 1240 enables the consolidated financial reporting of those independent utilities for better oversight and management. B. Basis of Accounting and Measurement Focus The VPU’s financial statements accounted for using the “economic resources” measurement focus and the accrual basis of accounting. Accordingly, all assets and liabilities (whether current or noncurrent) are included on the Statement of Net Position. The Statement of Revenues, Expenses and Changes in Net Position presents increases (revenues) and decreases (expenses) in total net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred. VPU distinguishes operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the Electric, Gas, Water, and Fiber Optics Enterprise funds are charges to customers for sales and services. Operating expenses for the proprietary funds include the costs of sales and services, administrative expenses and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. . . Item 11 Page 51 of 96 City of Vernon Vernon Public Utilities Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023 26 Note 1 – Summary of Significant Accounting Policies (Continued) C. Pooled Cash Part of the VPU’s operating cash balance is pooled with other City funds for deposit purposes. The share of each fund in the pooled cash account is recorded in each of the funds’ book of accounts, and interest income is apportioned to the participating funds based on the relationship of their average monthly balances to the total of the pooled cash. D. Cash, Cash Equivalents and Investments For purposes of the statement of cash flows, the VPU considers all highly liquid investments (including restricted cash and investments) with an original maturity of three months or less when purchased to be cash equivalents. Investment transactions are recorded on the settlement date. Investments in nonparticipating interest-earning investment contracts are reported at cost and all other investments are reported at fair value. E. Fair Value Measurement U.S. GAAP defines fair value, establishes a framework for measuring fair value and establishes disclosure about fair value measurement. Investments, unless otherwise specified at fair value in the financial statements, are categorized based upon the level of judgment associated with the inputs used to measure their fair value. Levels of inputs are as follows:  Level 1 – Inputs are unadjusted, quoted prices for identical assets or liabilities in active markets at the measurement date.  Level 2 – Inputs, other than quoted prices included in Level 1, that are observable for the assets or liabilities through corroboration with market data at the measurement date.  Level 3 – Unobservable inputs that reflect management’s best estimate of what market participants would use in pricing the assets or liabilities at the measurement date. F. Interfund Transactions Outstanding short-term borrowing between funds are reported as “due from/to other funds City funds”. Long-term interfund loans are classified as “advances to/from other City funds” on the statement of net position. G. Receivables Trade receivables are shown net of an allowance for uncollectible accounts. Allowances for uncollectible accounts were $1,207,483 of June 30, 2023. Utility customers are billed monthly. The estimated value of services provided, but unbilled at year-end has been included in the accompanying statement of net position. . . Item 11 Page 52 of 96 City of Vernon Vernon Public Utilities Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023 27 Note 1 – Summary of Significant Accounting Policies (Continued) H. Prepaid Items Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both the government-wide and fund financial statements by using purchase method. The VPU made a prepayment to Southern California Public Power Authority (“SCPPA”) for the VPU’s share of SCPPA’s payoff of the Hoover Center and Air Slots debt. This prepaid amount is amortized over the life of the debt based on the annual debt service obligations. See Note 11 for further information regarding SCPPA. I. Capital Assets Capital assets are recorded at cost where historical records are available and at an estimated original cost where no historical records exist. Donated capital assets are valued at their acquisition value. Capital assets include intangible assets with indefinite lives and public domain (infrastructure) general capital assets consisting of certain improvements including roads and bridges, sidewalks, curbs and gutters, and traffic light systems. The capitalization threshold for all capital assets is $5,000. Capital assets used in operations are depreciated using the straight-line method over their estimated useful lives in the government-wide and proprietary funds statements. Capital assets used in operations are depreciated over their estimated useful lives using the straight-line method. Assets Years Utility Plant 3-50 Maintenance and repairs are charged to operations when incurred. Betterments and major improvements, which significantly increase values, change capacities or extend useful lives, are capitalized. Upon sale or retirement of capital assets, the cost and related accumulated depreciation are removed from the respective accounts and any resulting gain or loss is included in the statement of revenues, expenses, and changes in net position. J. Deferred Outflows and Inflows of Resources The statement of net position reports separate sections for deferred outflows of resources and deferred inflows of resources, when applicable. Deferred Outflows of Resources represents consumption of net assets that applies to future periods. Deferred Inflows of Resources represents acquisition of net assets that applies to future periods. K. Compensated Absences Accumulated vacation is accrued when incurred. Upon termination of employment, the VPU will pay the employee all accumulated vacation leave at 100% of the employee’s base hourly rate. . . Item 11 Page 53 of 96 City of Vernon Vernon Public Utilities Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023 28 Note 1 – Summary of Significant Accounting Policies (Continued) L. Long-Term Debt Long-term debt and other long-term obligations are reported as liabilities in the appropriate activities. Bonds payable are reported net of the applicable bond premium or discount. Debt issuance costs except for any portion related to prepaid insurance were recognized as expense in the period incurred. Premium or discount not considered as part of the reacquisition price was amortized over the life of the bond. M. Pensions For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the plans and additions to/deductions from the plans’ fiduciary net position have been determined on the same basis as they are reported by the plans. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with benefit terms. Investments are reported at fair value. The following timeframes are used for pension reporting: Valuation Date June 30, 2021 Measurement Date June 30, 2022 Measurement Period July 1, 2021 to June 30, 2022 Gains and losses related to changes in total pension liability and fiduciary net position are recognized in pension expense systematically over time. The first amortized amounts are recognized in pension expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to pensions and are to be recognized in future pension expense. The amortization period differs depending on the source of the gain or loss. The difference between projected and actual earnings is amortized straight-line over 5 years. All other amounts are amortized straight-line over the average expected remaining service lives of all members that are provided with benefits (active, inactive, and retired) as of the beginning of the measurement period. N. Postemployment Benefits Other than Pensions (OPEB) For the purpose of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the City’s OPEB Plan and additions to/deductions from the OPEB Plan’s fiduciary net position have been determined on the same basis as they are reported by the Plan. For this purpose, the OPEB Plan recognizes benefit payments when due and payable in accordance with the benefit terms. Investments are reported at fair value, except for money market investments, which are reported at amortized cost. The following timeframes are reported OPEB reporting: Valuation Date June 30, 2022 Measurement Date June 30, 2022 Measurement Period July 1, 2021 to June 30, 2022 . . Item 11 Page 54 of 96 City of Vernon Vernon Public Utilities Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023 29 Note 1 – Summary of Significant Accounting Policies (Continued) N. Postemployment Benefits Other than Pensions (OPEB) (Continued) Gains and losses related to changes in total OPEB liability and fiduciary net position are recognized in OPEB expense systematically over time. The first amortized amounts are recognized in OPEB expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to OPEB and are to be recognized in future OPEB expense. The amortization period differs depending on the sources of gain or loss. The difference between projected and actual earnings is amortized on a straight-line basis over 5 years. All other amounts are amortized on a straight-line basis over the average expected remaining service lives of all members that are provided with benefits (active, inactive, and retired) at the beginning of the measurement period. O. Net Position The VPU financial statements utilize a net position presentation. Net position is classified as follows. Net Investment in Capital Assets – This component of net position consists of capital assets, net of accumulated depreciation, reduced by the outstanding balances of retention payable and debt that are attributable to the acquisition, construction, or improvement of those assets, and related deferred outflows and inflows of resources, net of unspent debt proceeds. Restricted – This component of net position consists of restricted assets reduced by liabilities and deferred inflows of resources related to those assets. Unrestricted – This component of net position is the amount of the assets, deferred outflows of resources, liabilities, and deferred inflows of resources that are not included in the determination of net investment in capital assets or the restricted component of net position. When expenses are incurred for purposes for which both restricted and unrestricted components of net position are available, the VPU’s policy is to apply the restricted component of net position first, then the unrestricted component of net position as needed. P. Use of Estimates The preparation of basic financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. Note 2 – Cash and Cash Equivalents The VPU has the following cash and investments at June 30, 2023: Cash and investments 153,374,024$ Restricted cash and investments 36,427,615 Total cash and investments 189,801,639$ . . Item 11 Page 55 of 96 City of Vernon Vernon Public Utilities Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023 30 Note 2 – Cash and Cash Equivalents (Continued) The VPU’s cash and investments at June 30, 2023, in more detail: Equity in pooled cash 28,046,792$ Deposits with financial institutions 9,802,498 Investments 151,952,349 Total cash and investments 189,801,639$ A. Equity in the Cash Pool of the City of Vernon The VPU has equity in the cash pool managed by the City. The VPU is a voluntary participant in that pool and the pool is governed by and under the regulatory oversight of the Investment Policy adopted by the City Council of the City. The VPU has not adopted an investment policy separate from that of the City. The amount of the VPU’s cash in this pool is reported in the accompanying financial statements based upon the VPU’s pro rata share of the amount calculated by the City. The balance available for withdrawal is based on the accounting records maintained by the City. B. Investments Under the provisions of the City’s investment policy, and in accordance with California Government Code, the following investments are authorized: Maximum Maximum Maximum Percentage Investments in Minimum Authorized Investment Type Maturity Allowed* One Issuer Rating United States Treasury Bills, Bonds and Notes 5 Years None None None State and Local Agency Bonds 5 Years None None None United States Government Sponsored Agency Securities 5 Years None None None Certain Asset-Backed Securities 5 Years 20% None AA Negotiable Certificates of Deposit 5 Years 30% None None Banker's Acceptance Notes 180 days 40% 30% None Commercial Paper 270 days 25% 10% of the issuer outstanding paper A Repurchasement Agreement 1 year None None None Reverse Repurchase Agreement 92 Days 20% None None Medium-Term Notes 5 Years 30% None A Mutual Funds Incesting in Eligible Securities N/A 20% 10% AAA Money Market Mutual Funds N/A 20% 10% AAA Mortgage-Backed Pass-Through Securities 5 Years 20% None AA State Administered Pool Investment N/A None $75 Million None N/A - Not Applicable *Excluding amounts held by bond trustee that are not subject to California Government Code restrictions. C. Local Agency Investment Fund (“LAIF”) The VPU is a participant in LAIF which is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. As of June 30, 2023, the VPU had $636,435 invested in LAIF. The fair value of the VPU’s portion in the pool is the same as the value of the pool shares and reported at amortized cost. . . Item 11 Page 56 of 96 City of Vernon Vernon Public Utilities Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023 31 Note 2 – Cash and Cash Equivalents (Continued) D. Fair Value Measurement At June 30, 2023, investments are reported at fair value. The following table presents the fair value measurements of investments on a recurring basis and the levels with GASB 72 fair value hierarchy in which the fair value measurements fall at June 30, 2023: Quoted Prices in Active Significant Market for Identical Other Observable Investment Type Assets (Level 1) Inputs (Level 2) Uncategorized Total Local Agency Investment Fund -$ -$ 636,435$ 636,435$ Money Market Funds - - 85,179,474 85,179,474 US Treasury bills 29,402,775 - - 29,402,775 Negotiable Certificates of Deposit* - 496,620 - 496,620 Investment with fiscal agent: Money Market Funds - - 36,237,045 36,237,045 Total 29,402,775$ 496,620$ 85,815,909$ 151,952,349$ * Priced based on significant obervable inputs. Measurement Input E. Risk Disclosures Interest Rate Risk - As a means of limiting its exposure to fair value losses arising from rising interest rates, the City’s investment policy limits investments to a maximum maturity of five years. At June 30, 2023, the VPU had the following investment maturities: 1 Year 1 Year to 3 Years to Investment Type or Less 3 Years 5 Years Total Local Agency Investment Fund 636,435$ -$ -$ 636,435$ Money Market Funds 85,179,474 - - 85,179,474 US Treasury bills 29,402,775 - - 29,402,775 Negotiable Certificates of Deposit - 247,137 249,483 496,620 Investment with fiscal agent: Money Market Funds 36,237,045 - - 36,237,045 Total 151,455,729$ 247,137$ 249,483$ 151,952,349$ Remaining Maturity (In Months) . . Item 11 Page 57 of 96 City of Vernon Vernon Public Utilities Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023 32 Note 2 – Cash and Cash Equivalents (Continued) E. Risk Disclosures (Continued) Credit Risk – Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the minimum rating required by (where applicable) the California Government Code, the City’s investment policy, or debt agreements, and the actual rating, by Standard and Poor’s and Moody’s at June 30, 2023 for each investment type: Fair Value Minimum Not Required at Legal to be Investment Type June 30, 2023 Rating AAA Other Rated Local Agency Investment Fund 636,435$ Not Rated -$ -$ 636,435$ Money Market Funds 85,179,474 AAA 85,179,474 - - US Treasury bills 29,402,775 N/A 29,402,775 - - Negotiable Certificates of Deposit 496,620 N/A - 496,620 - Investment with fiscal agent: Money Market Funds 36,237,045 36,237,045 - - Total 151,952,349$ 150,819,294$ 496,620$ 636,435$ Concentration of Credit Risk The investment policy of the City contains no limitations on the amount that can be invested in any one issuer excluding a 10% limitation on commercial papers, mutual funds, and money market mutual funds and a 30% limitation on banker’ acceptances. The City’s investment policy places no limit on the amount of debt proceeds held by a bond trustee that the trustee may invest in one issuer that is governed by the provisions of debt agreements of the City, rather than the general provisions of the California Government Code or the City’s investment policy. Custodial Credit Risk The Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover deposits or will not be able to recover collateral securities that are in the possession of a third party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty to a transaction, a government will not be able to recover the value of investment or collateral securities that are in the possession of the third party. At June 30, 2023, none of the City’s deposits or investments were exposed to custodial credit risk. Note 3 – Accounts Receivable The VPU’s accounts receivable at June 30, 2023 are as follows: Accounts Receivabe 15,968,182$ Less: Allowance for Uncollectible Accounts (1,207,483) Total accounts Receivable, Net 14,760,699$ . . Item 11 Page 58 of 96 City of Vernon Vernon Public Utilities Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023 33 Note 4 – Interfund Transactions A. Due From/To Other City Funds Due to other City funds of $3,045,195 and due from other City funds of $36 resulted from borrowing of cash for temporary purposes. All balances are expected to be reimbursed within the subsequent year. B. Transfers From/To Other City Funds For the year ended June 30, 2023, the VPU transferred $491,542 to the City’s General Fund for the reimbursement of Enterprise Resource Planning implementation costs. Note 5 – Capital Assets A summary of changes in the capital assets for the VPU for the year ended June 30, 2023 is as follows: Balance Balance July 1, 2022 Additions Deletions Transfers June 30, 2023 Capital assets, not being depreciated: Electric utility - Land 13,193,594$ -$ -$ -$ 13,193,594$ Water utility - Water 467,640 - - - 467,640 Electric utility - Intangibles - Environmental credits 4,774,583 160,763 (884,702) - 4,050,644 Electric utility - Construction in progress 45,453,774 1,287,047 (137,328) (9,768) 46,593,725 Water utility - Construction in progress 6,914,299 5,933,375 - (2,204,043) 10,643,631 Fiber Optic utility - Construction in progress - 266,172 - - 266,172 Total capital assets, not being depreciated 70,803,890 7,647,357 (1,022,030) (2,213,811) 75,215,406 Capital assets, being depreciated: Electric utility - Production plant 212,362,988 458,731 - - 212,821,719 Electric utility - Transmission plant 3,616,464 - - - 3,616,464 Electric utility - Distribution plant 257,051,650 22,548,011 - 9,768 279,609,429 Electric utility - General plant 9,754,409 305,165 (98,179) - 9,961,395 Water utility plant 23,730,271 787,837 (14,782) 2,204,043 26,707,369 Gas utility plant 27,200,594 - (14,803) - 27,185,791 Fiber Optic utility plant 3,756,609 159,930 - - 3,916,539 Total capital assets, being depreciated 537,472,985 24,259,674 (127,764) 2,213,811 563,818,706 Less accumulated depreciation for: Electric utility - Production plant (19,391,536) (14,276,852) - - (33,668,388) Electric utility - Transmission plant (2,443,189) (77,553) - - (2,520,742) Electric utility - Distribution plant (92,171,698) (7,999,264) - - (100,170,962) Electric utility - General plant (6,483,727) (381,141) 78,757 - (6,786,111) Water utility plant (14,844,199) (575,512) 14,782 - (15,404,929) Gas utility plant (11,821,433) (706,361) 14,803 - (12,512,991) Fiber Optic utility plant (2,693,449) (210,161) - - (2,903,610) Total accumulated depreciation (149,849,231) (24,226,844) 108,342 - (173,967,733) Total capital assets, being depreciated, net 387,623,754 32,830 (19,422) 2,213,811 389,850,973 Total Capital assets, net 458,427,644$ 7,680,187$ (1,041,452)$ -$ 465,066,379$ . . Item 11 Page 59 of 96 City of Vernon Vernon Public Utilities Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023 34 Note 5 – Capital Assets (Continued) The VPU’s total depreciation expense for the year was $24,226,844, broken down as follows: Electric Fund 22,734,810$ Gas Fund 706,361 Water Fund 575,512 Fiber Optics Fund 210,161 Total depreciation expense 24,226,844$ Note 6 – Long-Term Debt The following is a summary of changes in VPU’s long-term liabilities for the year ended June 30, 2023: At June 30, 2023, the outstanding debt obligations were as follows: Balance Balance Due within Due in More July 1, 2022 Additions Deletions June 30, 2023 One Year Than One Year Business-Type activities Public Borrowings: Revenue Bonds: 2008 Taxable Revenue Bonds - Series A - Electric 37,895,000$ - (1,025,000)$ 36,870,000$ 1,120,000$ 35,750,000$ 2012 Taxable Revenue Bonds - Series B - Electric 11,505,000 - (6,165,000) 5,340,000 1,170,000 4,170,000 2015 Taxable Revenue Bonds - Series A - Electric 111,720,000 - (22,540,000) 89,180,000 23,520,000 65,660,000 2020 Taxable Revenue Bonds - Series A - Electric 19,305,000 - - 19,305,000 - 19,305,000 2021 Taxable Revenue Bonds - Series A - Electric 173,815,000 - (20,380,000) 153,435,000 21,335,000 132,100,000 2022 Taxable Revenue Bonds - Series A - Electric 52,070,000 - - 52,070,000 4,690,000 47,380,000 2020 Taxable Revenue Bonds - Series A - Water 14,600,000 - (250,000) 14,350,000 265,000 14,085,000 Total Revenue Bonds 420,910,000 - (50,360,000) 370,550,000 52,100,000 318,450,000 Unamortized Premiums/(Discounts): 2008 Taxable Revenue Bonds - Series A - Electric (2,093) - 131 (1,962) - (1,962) 2012 Taxable Revenue Bonds - Series B - Electric (69,987) - 16,797 (53,190) - (53,190) 2015 Taxable Revenue Bonds - Series A - Electric (1,096,863) - 355,739 (741,124) - (741,124) 2020 Taxable Revenue Bonds - Series A - Electric 6,615,877 - (438,622) 6,177,255 - 6,177,255 2021 Taxable Revenue Bonds - Series A - Electric 25,999,586 - (6,550,066) 19,449,520 - 19,449,520 2022 Taxable Revenue Bonds - Series A - Electric 10,179,957 - (732,918) 9,447,039 - 9,447,039 2020 Taxable Revenue Bonds - Series A - Water 535,833 - (19,080) 516,753 - 516,753 Total Unamortized Premiums/(Discounts) 42,162,310 - (7,368,019) 34,794,291 - 34,794,291 Total Public Offering 463,072,310 - (57,728,019) 405,344,291 52,100,000 353,244,291 Direct Borrowing: Water Replenishment District Note Payable 1,220,930 - (139,535) 1,081,395 139,535 941,860 Total Direct Borrowing 1,220,930 - (139,535) 1,081,395 139,535 941,860 Compensated absences 1,218,405 904,156 (972,577) 1,149,984 383,328 766,656 Total business-Type activities 465,511,645$ 904,156$ (58,840,131)$ 407,575,670$ 52,622,863$ 354,952,807$ $43,765,000 Electric System Revenue Bonds (2008 Taxable Series A) The bonds are special obligation bonds which are secured by an irrevocable pledge of electric revenues payable to bondholders. Under the Bond Indenture of Trust, interest and principal on the bonds are payable from Net Revenues (or Revenues less Operation and Maintenance Expenses) and/or amounts in the Light and Power Enterprise (as those terms are defined in the Indenture of Trust). The City of Vernon Electric System Revenue Bonds, 2008 Taxable Series A were issued to provide funds to (i) finance the cost of certain capital improvements to the City’s Electric System, (ii) fund a deposit to the Debt Service Reserve Fund, and (iii) to pay costs of issuance of the 2008. The total unpaid balance as of June 30, 2023, was $36,870,000. . . Item 11 Page 60 of 96 City of Vernon Vernon Public Utilities Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023 35 Note 6 – Long-Term Debt (Continued) $43,765,000 Electric System Revenue Bonds (2008 Taxable Series A) (Continued) The future annual debt service requirements for the Taxable Revenue Bonds, Series 2008A-T are as followed: Year Ending June 30, Principal Interest Total 2024 1,120,000$ 3,119,029$ 4,239,029$ 2025 1,220,000 3,018,526 4,238,526 2026 1,330,000 2,909,004 4,239,004 2027 1,450,000 2,789,603 4,239,603 2028 1,580,000 2,659,464 4,239,464 2029-2033 10,290,000 10,899,422 21,189,422 2034-2038 15,815,000 5,374,978 21,189,978 2039 4,065,000 174,592 4,239,592 Total 36,870,000$ 30,944,618$ 67,814,618$ $35,100,000 Electric System Revenue Bonds (2012 Taxable Series B) On January 10, 2012, the City issued Electric System Revenue Bonds, 2012 Series B, in the amount of $35,100,000. During the fiscal year ended 2022, a portion of the Electric System Revenue Bonds were refunded with the issuance of the Electric System Revenue Bonds 2022 Series A. The bonds are special obligation bonds which are secured by an irrevocable pledge of electric revenues payable to bondholders. Under the Bond Indenture of Trust, interest and principal on the bonds are payable from Net Revenues (or Revenues less Operation and Maintenance Expenses) and/or amounts in the Light and Power Enterprise (as those terms are defined in the Indenture of Trust). The City of Vernon Electric System Revenue Bonds, 2012 Taxable Series B were issued to provide funds to (i) refund the $28,680,000 aggregate principal amount of 2009 Bonds maturing on August 1, 2012, (ii) to pay a portion of the Costs of the 2012 Project, and (iii) to pay costs of issuance of the 2012 Taxable Series B Bonds. The total unpaid balance as of June 30, 2023, was $5,340,000. The future annual debt service requirements for the Taxable Revenue Bonds, Series 2012B-T are as followed: Year Ending June 30, Principal Interest Total 2024 1,170,000$ 302,613$ 1,472,613$ 2025 1,305,000 225,269 1,530,269 2026 1,390,000 140,181 1,530,181 2027 1,475,000 47,938 1,522,938 Total 5,340,000$ 716,001$ 6,056,001$ . . Item 11 Page 61 of 96 City of Vernon Vernon Public Utilities Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023 36 Note 6 – Long-Term Debt (Continued) $111,720,000 Electric System Revenue Bonds (2015 Taxable Series A) The bonds are special obligation bonds which are secured by an irrevocable pledge of electric revenues payable to bondholders. Under the Bond Indenture of Trust, interest and principal on the bonds are payable from Net Revenues (or Revenues less Operation and Maintenance Expenses) and/or amounts in the Light and Power Enterprise (as those terms are defined in the Indenture of Trust). The City of Vernon Electric System Revenue Bonds, 2015 Taxable Series A were issued to provide funds to (i) refund a portion of the Outstanding Electric System Revenue Bonds, 2009 Series A; (ii) finance the Costs of certain Capital Improvements to the City’s Electric System by reimbursing the Electric System for the prior payment of such Costs from the Light and Power Fund; (iii) fund a deposit to the Debt Service Reserve Fund; and (iv) pay costs of issuance of the 2015 Bonds. The total unpaid balance as of June 30, 2023, was $89,180,000. The future annual debt service requirements for the Taxable Revenue Bonds, Series 2015A-T are as followed: Year Ending June 30, Principal Interest Total 2024 23,520,000$ 3,596,938$ 27,116,938$ 2025 24,585,000 2,530,618 27,115,618 2026 25,780,000 1,341,193 27,121,193 2027 15,295,000 370,904 15,665,904 89,180,000$ 7,839,653$ 97,019,653$ $71,990,000 Electric System Revenue Bonds (2020 Series A) The bonds are special obligation bonds which are secured by an irrevocable pledge of electric revenues payable to bondholders. Under the Bond Indenture of Trust, interest and principal on the bonds are payable from Net Revenues (or Revenues less Operation and Maintenance Expenses) and/or amounts in the Light and Power Enterprise (as those terms are defined in the Indenture of Trust). The City of Vernon Electric System Revenue Bonds, 2020 Series A were issued to provide funds to (i) to finance the acquisition and construction of certain capital improvements to the Electric System of the City, (ii) to refund all the City’s outstanding Electric System Revenue Bonds, 2009 Series A, and (iii) to pay costs of issuance of the 2020 Bonds. The total unpaid balance as of June 30, 2023, was $19,305,000. The future annual debt service requirements for the Taxable Revenue Bonds, Series 2020A-T are as followed: Year Ending June 30, Principal Interest Total 2024 -$ 965,250$ 965,250$ 2025 - 965,250 965,250 2026 - 965,250 965,250 2027 - 965,250 965,250 2028 - 965,250 965,250 2029-2033 8,450,000 3,812,250 12,262,250 2034-2038 10,855,000 1,411,125 12,266,125 Total 19,305,000$ 10,049,625$ 29,354,625$ . . Item 11 Page 62 of 96 City of Vernon Vernon Public Utilities Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023 37 Note 6 – Long-Term Debt (Continued) $183,815,000 Electric System Revenue Bonds (2021 Series A) In December 2021, the City of Vernon issued 2021A Electric System Revenue Bonds in the amount of $183,815,000 (i) to pay the costs of the acquisition by the City of Vernon of a 134-megawatt natural gas-fired generating facility located within the City limits on land owned by the City, together with certain related electrical interconnection facilities and other assets, property, and contractual rights; (ii) to fund a deposit to the Debt Service Reserve Fund in satisfaction of the Debt Service Reserve Requirement; and (iii) to pay costs of issuance of the 2021 bonds. The bonds bear interest rates between 4.00%-5.00% that is payable on a semi-annual basis on April 1 and October 1, commencing April 1, 2022. The bonds are special obligation bonds which are secured by an irrevocable pledge of electric revenues payable to bondholders. The total unpaid balance as of June 30, 2023, was $153,435,000. The future annual debt service requirements for the Taxable Revenue Bonds, Series 2021A-T are as followed: Year Ending June 30, Principal Interest Total 2024 21,335,000$ 7,405,125$ 28,740,125$ 2025 22,400,000 6,325,000 28,725,000 2026 23,530,000 5,190,875 28,720,875 2027 31,255,000 3,917,875 35,172,875 2028 54,915,000 2,059,375 56,974,375 Total 153,435,000$ 24,898,250$ 178,333,250$ $52,070,000 Electric System Revenue Bonds (2022 Series A) In December 2021, the City of Vernon issued 2022A Electric System Revenue Bonds in the amount of $52,070,000 to refund the 2012A Electric System Revenue Bonds, a portion of the 2012B Electric Revenue Bonds, and provide for the costs of issuing the bonds. Under the Bond Indenture of Trust, interest and principal on the bonds are payable from Net Revenues (or Revenues less Operation and Maintenance Expenses) and/or amounts in the Light and Power Enterprise (as those terms are defined in the Indenture of Trust). The City of Vernon Electric System Revenue Bonds, 2022 Series A were issued to (i) refund and defease all of the City’s outstanding Electric System Revenue Bonds, 2012 Series A and a portion of the City’s outstanding Electric System Revenue bonds, 2012 Taxable Series B and (ii) pay costs of issuance of the 2022 Bonds. The bonds bear interest rates between 4.00%-5.00% that is payable on a semi-annual basis beginning February 1 and August 1, commencing on August 1, 2022. The bonds are special obligation bonds which are secured by an irrevocable pledge of electric revenues payable to bondholders. The total unpaid balance as of June 30, 2023, was $52,070,000. . . Item 11 Page 63 of 96 City of Vernon Vernon Public Utilities Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023 38 Note 6 – Long-Term Debt (Continued) $52,070,000 Electric System Revenue Bonds (2022 Series A) (Continued) The future annual debt service requirements for the Taxable Revenue Bonds, Series 2022A-T are as followed: Year Ending June 30, Principal Interest Total 2024 4,690,000$ 2,486,250$ 7,176,250$ 2025 4,885,000 2,246,875 7,131,875 2026 5,130,000 1,996,500 7,126,500 2027 5,405,000 1,733,125 7,138,125 2028 950,000 1,574,250 2,524,250 2029-2033 5,540,000 7,087,250 12,627,250 2034-2038 7,110,000 5,513,750 12,623,750 2039-2042 18,360,000 2,157,750 20,517,750 Total 52,070,000$ 24,795,750$ 76,865,750$ $14,840,000 Water System Revenue Bonds (2020 Series A) The bonds are special obligation bonds which are secured by an irrevocable pledge of water revenues payable to bondholders. Under the Indenture of Trust dated May 6, 2020, interest and principal on the bonds are payable from Net Revenues (or Revenues less Operation and Maintenance Expenses) and/or amounts in the Water Enterprise (as those terms are defined in the Indenture of Trust). The total unpaid balance as of June 30, 2023, was $14,350,000. The future annual debt service requirements for the Taxable Revenue Bonds, Series 2020A-T are as followed: Year Ending June 30, Principal Interest Total 2024 265,000$ 562,850$ 827,850$ 2025 275,000 549,350 824,350 2026 - 542,475 542,475 2027 - 542,475 542,475 2028 - 542,475 542,475 2029-2033 1,985,000 2,464,250 4,449,250 2034-2038 2,180,000 1,943,625 4,123,625 2039-2043 2,680,000 1,445,000 4,125,000 2044-2048 3,180,000 940,625 4,120,625 2049-2051 3,785,000 331,188 4,116,188 Total 14,350,000$ 9,864,313$ 24,214,313$ . . Item 11 Page 64 of 96 City of Vernon Vernon Public Utilities Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023 39 Note 6 – Long-Term Debt (Continued) Water Replenishment District Note Payable – Direct Borrowing In May 2019, the City entered into an agreement with Water Replenishment District of Southern California (WRD) for assistance with the construction of a new groundwater well or rehabilitation of an existing groundwater well. The promissory note is unsecured and has no interest basis for an amount not to exceed $1,500,000. As of June 30, 2022, WRD has disbursed all of the funds under the agreement to the City. The note is payable in quarterly principal payments commencing September 1, 2020, in an amount which, together with all quarterly payments, will be sufficient to fully amortize the principal balance of the note by the maturity date of April 1, 2031. The total unpaid balance as of June 30, 2023, was $1,081,395. Upon an event of default, WRD may declare any or all of the outstanding and unpaid principal balance immediately due and payable, without presentment, demand, protest, notice of protest, notice of acceleration or of intention to accelerate or any other notice, declaration or act of any kind, all of which are hereby expressly waived by the City. The future annual debt service requirements are as follows: Year Ending June 30, Principal Interest Total 2024 139,535$ -$ 139,535$ 2025 139,535 - 139,535 2026 139,535 - 139,535 2027 139,535 - 139,535 2028 139,535 - 139,535 2029-2031 383,720 - 383,720 Total 1,081,395$ -$ 1,081,395$ Compensated Absences The balance outstanding at June 30, 2023, was $1,149,984. Refer to note 7 for more information of these liabilities. Expense Stabilization Fund The VPU maintains an Expense Stabilization Fund held by a Trustee in such amounts, at such times and from sources as shall be determined by the City in its sole discretion. If an Event of Default under the Indenture has occurred and is continuing, the Trustee shall transfer all moneys in this fund to the debt service interest account and principal account as provided in the Indenture. Moneys on deposit in this Fund may be withdrawn by the City at any time that no Event of Default exists under the Indenture. As at June 30, 2023, this fund has a balance of $40,161,516. Right to Accelerate Upon Default Notwithstanding anything contrary in the Indenture or in the Bonds, upon the occurrence of an Event of Default, the Trustee may, with the consent of each Credit Provider whose consent is required by a Supplemental Indenture or a Credit Support Agreement, and shall, at the direction of the Owners of a majority in principal amount of Outstanding Bonds (other than Bonds owned by or on behalf of the City) by written notice to the City, declare the principal of the Outstanding Bonds and the interest thereon to be immediately due and payable, whereupon such principal and interest shall, without further action, become and be immediately due and payable. . . Item 11 Page 65 of 96 City of Vernon Vernon Public Utilities Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023 40 Note 6 – Long-Term Debt (Continued) Credit Ratings As of June 30, 2023, the ratings on all Electric System Revenue Bonds is Baa1 stable Moody’s and BBB+ stable by S&P and the ratings on all Water System Revenue Bonds is A- by S&P. Note 7 – Compensated Absences Under certain circumstances and accordingly to the negotiated labor agreements, VPU employees are allowed to accumulate annual leave. The following is a summary of compensated absences payable transactions for the year ended June 30 2023: Balance Balance Due within Due in More July 1, 2022 Additions Deletions June 30, 2023 One Year Than One Year Compensated absences 1,218,405$ 904,156$ (972,577)$ 1,149,984$ 383,328$ 766,656$ Note 8 – Risk Management The VPU is in the City’s self-insurance program as part of its policy to self-insure certain levels of risk within certain separate lines of coverage to maximize cost savings. The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets, errors, and omissions; injuries to employees, and natural disasters. The City utilizes insurance policy(s) to transfer these risks. Each policy has either self-insured retention or deductible, which are parts of the City’s risk financing program. These expenses are paid on a cash basis as they are incurred. There have been no significant settlements or deductions in insurance coverage during the past three fiscal years. Starting in fiscal year 2010, the City chose to establish risk financing in the City’s General Fund, whereby assets are set aside for claim-litigation settlements associated with the abovementioned risks up to their self-insured retentions or policy deductibles. Athens Administrators Inc. is the third-party administrator for the City’s workers’ compensation program and they provide basic services for general liability claims and litigation. . . Item 11 Page 66 of 96 City of Vernon Vernon Public Utilities Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023 41 Note 8 – Risk Management (Continued) The insurance limits for the fiscal year 2023 are as follows: Insurance Type Program Limits Deductible/SIR (Self-Insured Retention) 1st Excess Liability $5,000,000 $2 Million $3 Million Law Enforcement 2nd Excess Liability $5,000,000 $5,000,000 3rd Excess Liability $5,000,000 $10,000,000 4th Excess Liability $5,000,000 $15,000,000 Excess Workers Compensation $50,000,000 $1,000,000 $1.5 Million Presumptive Loss Property - Power Generating $100,000,000 Various Property - Residential $7,950,653 $2,500 Property - Municipal $59,614,930 $25,000 Commercial Propert/EQ and FL $50,000,000 - Government Crime $1,000,000 $25,000 Premise Pollution/Environmental Impairment $5,000,000 $25,000 $5,000,000 per Claim $50,000 Utility Locs. $100,000 Natural Gas Pipeline Cyber Liability $5,000,000 $100,000 Auto Physical Damage $10,000,000 $5,000 Residential Property Insurance $7,950,653 $2,500 Terrorism $100 Million Property Terroris m $0 $5 Million Terrorism Liabilty $5 Million Active Shooter Special Events $2,000,000 $1,000,000 Each Occurrence Note 9 – Pension Plan A. General Information about the Pension Plans Plan Descriptions The City contribution to the California Public Employees Retirement System (“CalPERS”), an agent multiple- employer defined benefit pension plan for miscellaneous employees and a cost-sharing multiple-employer defined benefit plan for safety employees. CalPERS acts as a common investment and administrative agent for participating public entities within the State of California. Benefit provisions and all other requirements are established by state statute and City ordinance. A full description of the pension plan regarding number of employees covered, benefit provisions, assumptions (for funding, but not accounting purposes), and membership information are listed in the June 30, 2021 Annual Actuarial Valuation Report. This report and CalPERS’ audited financial statements are publicly available reports that can be obtained at CalPERS’ website under Forms and Publications. . . Item 11 Page 67 of 96 City of Vernon Vernon Public Utilities Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023 42 Note 9 – Pension Plan (Continued) A. General Information about the Pension Plans (Continued) Benefits Provided CalPERS provides retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. Benefit provisions under both plans are established by State Statute and City Resolution as follows: Classic PEPRA Prior to On or After Hire date January 1, 2013 January 1, 2013 Benefit formula 2.7% @ 55 2% @ 62 Benefit vesting schedule 5 years service 5 years service Benefit payments Monthly for life Monthly for life Retirement age 50 yrs 52 yrs Monthly benefits, as a % of eligible compensation 2.0%-2.7%, 50 yrs -55 yrs, resp ectively 1.0%-2.0%, 52 yrs -62 yrs, resp ectively Required employee contribution rate (FY22-23) 8.00% 6.25% Required employer contribution rate (FY22-23) 11.50% 11.50% Required employer contribution rate (FY21-22) 11.38% 11.38% Classic PEPRA Prior to On or After Hire date January 1, 2013 January 1, 2013 Benefit formula 3.0% @ 50 2.7% @ 57 Benefit vesting schedule 5 years service 5 years service Benefit payments Monthly for life Monthly for life Retirement age 50 yrs 50 yrs Monthly benefits, as a % of eligible 3%, 50 yrs 2.0% - 2.7% 50 yrs - 57 yrs repectively Required employee contribution rate (FY22-23) 9.00% 13.75% Required employer contribution rate (FY22-23) 23.39% 20.70% Required employer contribution rate (FY21-22) 22.78% 22.78% Miscellaneous Safety Benefits Provided Participants are eligible for non-industrial disability retirement if they become disabled and have at least 5 years credited service. There is no special age requirement. The standard non-industrial disability retirement benefit is a monthly allowance equal to 1.8 percent of final compensation, multiplied by service years. Industrial disability benefits are not offered to miscellaneous employees. The City provides industrial disability retirement benefits to safety employees only. The industrial disability retirement benefit is a monthly allowance equal to 50 percent of final compensation. . . Item 11 Page 68 of 96 City of Vernon Vernon Public Utilities Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023 43 Note 9 – Pension Plan (Continued) A. General Information about the Pension Plans (Continued) Benefits Provided (Continued) An employee's beneficiary may receive the basic death benefit if the employee becomes deceased while actively employed. The employee must be actively employed with the City to be eligible for this benefit. An employee's survivor who is eligible for any other pre-retirement death benefit may choose to receive that death benefit instead of this basic death benefit. The basic death benefit is a lump sum in the amount of the employee's accumulated contributions, where interest is currently credited at 7.5 percent per year, plus a lump sum in the amount of one month's salary for each completed year of current service, up to a maximum of six months’ salary. For purposes of this benefit, one month's salary is defined as the member's average monthly full-time rate of compensation during the 12 months preceding death. Upon the death of a retiree, a one-time lump sum payment of $500 will be made to the retiree’s designated survivor(s), or to the retiree’s estate. Benefit terms provide for annual cost-of-living adjustments to each employee’s retirement allowance. Beginning the second calendar year after the year of retirement, retirement and survivor allowances will be annually adjusted on a compound basis up to 2 percent. Contributions Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on July 1 following notice of a change in the rate. Funding contributions for both Plans are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute to the difference between the actuarially determined rate and the contribution rate of employees. For the year ended Jun 30, 2023, the VPU’s share of employer contributions made to the plans was $3,716,823. B. Net Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions Assumptions The net pension liability of each of the Plans is measured as of June 30, 2022, using an annual actuarial valuation as of June 30, 2021, rolled forward to June 30, 2022, using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is shown below. Actuarial Cost Method Actuarial Assumptions: Discount Rate Inflation Salary Increases Mortality Rate Table(1) Post Retirement Benefit Increase (1)The mortality table used was developed based on CalPERS-specific data. The probabilities of mortality are based on the 2021 CalPERSExperience Study for the period from 2001 to 2019. Pre-retirement and Post-retirement mortality rates include generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries. For more details on this table, please refer to the CalPERS Experience Study and Review of Actuarial Assumptions report from November 2021 that can be found on the CalPERS website. Derived using CalPERS’ Membership Data for all Funds. The lesser of contract COLA or 2.30% until Purchasing Power Protection. Allowance floor on purchasing power applies, 2.30% thereafter Varies by Entry Age and Service 2.30% 6.90% Entry Age Normal . . Item 11 Page 69 of 96 City of Vernon Vernon Public Utilities Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023 44 Note 9 – Pension Plan (Continued) B. Net Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions (Continued) Long-Term Expected Rate of Return The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Using historical returns of all the funds’ asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11+ years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the rounded single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equal to the single equivalent rate calculated above and adjusted to account for assumed administrative expenses. The expected real rates of return by asset class are as follows: Assumed Asset Asset Class1 Allocation Real Return1,2 Global Equity - Cap-weighted 30.00% 4.54% Global Equity - Non-Cap-weighted 12.00% 3.80% Private Equity 13.00% 7.28% Treasury 5.00% 0.27% Mortgage-backed Securities 5.00% 0.50% Investment Grade Corporates 10.00% 1.56% High Yield 5.00% 2.27% Emerging Market Debt 5.00% 2.48% Private Debt 5.00% 3.57% Real Assets 15.00% 3.21% Leverage -5.00% -0.59% 100% 1 An expected inflation of 2.30% used for this period. 2 Figures are based on the 2021 Asset Liability Management study. Discount Rate The discount rate used to measure the total pension liability was 6.90%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on the assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability. . . Item 11 Page 70 of 96 City of Vernon Vernon Public Utilities Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023 45 Note 9 – Pension Plan (Continued) B. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions (Continued) Proportionate Share of Net Pension Liability – Allocation of the City’s Pension Plans to the VPU The VPU’s net pension liability for the Plans is measured as the proportionate share of the aggregate net pension liability of the City’s miscellaneous agent multiple-employer plan and safety cost-sharing plan. The VPU’s proportionate share of the aggregate net pension liability was based on the VPU’s current year share of contributions of the pension plans relative to the City’s total current year contributions to the pension plans. The VPU’s proportionate share of the aggregate net pension liability for the pension plans as of the measurement date ended June 30, 2021 and 2022 were as follows: Total Pension Plan Fiduciary Net Net Pension Li ability Posi tion Li ability/(Asset)Proporti onate (a) (b) (c) = (a) - (b) Share Balance at 6/30/21 (Valuation Date) 120,548,668$ 103,984,555$ 16,564,113$ 18.82% Balance at 6/30/22 (Measurement Date) 118,447,456 82,084,690 36,362,766 23.05% Net Changes during 2021-2022 (2,101,212) (21,899,865) 19,798,653 4.23% Increase (Decrease) Pension Expense and Deferred Outflows and Inflows of Resources For the measurement period ended June 30, 2022, the VPU recognized its proportionate share of the aggregate pension expense of the plans which totaled $975,584. At June 30, 2023, the VPU reported its proportionate share of the aggregate deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows Deferred Inflows of Resources of Resources Contribution made after measurement period 3,717,613$ -$ Changes of assumptions 3,332,750 (253,180) Difference between expected and actual experienc 1,112,127 - Net difference between projected and actual earning on pension plan investments 5,542,226 - Adjustment due to differences in proportions 694,290 - Difference betwwen City contributions and p roportionate share of contribution - (1,566,740) T otal 14,399,006$ (1,819,920)$ . . Item 11 Page 71 of 96 City of Vernon Vernon Public Utilities Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023 46 Note 9 – Pension Plan (Continued) B. Net Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions (Continued) Pension Expense and Deferred Outflows and Inflows of Resources (Continued) $3,717,613 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the collective net pension liability in the year ending June 30, 2024. Differences between projected and actual investment earnings are amortized on a five-year straight-line basis and all other amounts are amortized over the expected average remaining service lives of all members that are provided with benefits. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows: Measurement Period Ending June 30 Total 2023 2,660,594$ 2024 1,993,223 2025 877,654 2026 3,330,002 Total 8,861,473$ Sensitivity of the Net Pension Liability to Changes in the Discount Rate The following presents the VPU’s proportionate share of the Plans’ combined net pension liability, calculated using a discount rate of 6.90%, as well as what the VPU’s proportionate share of the Plans’ combined net pension liability would be if it were calculated using a discount rate that is a 1-percentage point lower (5.90%) or a 1-percentage point higher (7.90%) than the current rate: Discount Rate Current Discount Discount Rate - 1% (5.90%) Rate (6.90%) + 1% (7.90%) Miscellaneous Plan 19,895,594$ 13,048,026$ 7,456,988$ Safety Plan 33,107,760$ 23,314,740$ 15,311,158$ VPU's Net Pension Liability/(Asset) Pension Plan Fiduciary Net Position Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports. Payable to the Pension Plan At June 30, 2023, the VPU had no outstanding amount of contributions to the pension plans required for the year ended June 30, 2023. . . Item 11 Page 72 of 96 City of Vernon Vernon Public Utilities Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023 47 Note 10 – Other Postemployment Benefits (“OPEB”) A. General Information about the OPEB Plan The other postemployment benefits (“OPEB”) described in the following paragraphs relate to the City’s OPEB plan. The VPU’s share of the net pension liability of the City’s OPEB Plan is reported as a cost-sharing plan in these financial statements since the VPU’s operations are handled by City employees who are eligible to participate in the City’s OPEB plan. Benefits Provided Generally, the City will provide a postemployment benefit plan for the employee only to those who retire at age sixty (60) or later with twenty (20) years of continuous uninterrupted service up to the age of sixty-five (65). Alternatively, employees who retire before the age of sixty (60) with twenty (20) years of continuous uninterrupted service, will be permitted to pay their medical and dental premium cost and upon reaching the age of fifty (50), the City will pay the premium for the medical and dental plans until they reach the age of sixty-five (65). Resolution 2011-129 provided lifetime medical benefits to Police Management employees and their spouses, who have been employed as sworn safety personnel for a minimum of twenty (20) years and a minimum of ten (10) years of that service have been with the City of Vernon. Resolution 2011-127 sets forth the MOU of the Vernon Police Officers’ Benefit Association, provided lifetime medical benefits to those employees and their spouses, who have been employed as sworn safety personnel for a minimum of twenty (20) years and a minimum of ten (10) years of that service has been with the City of Vernon. Resolution 2012-217 granted specific retiree medical benefits to employees who retire during the 2012-2013 fiscal year in order to provide an incentive for early retirement whereby the City authorized the payment of medical and dental insurance premiums for eligible retiring employees and their eligible dependents with at least ten (10) years of service plus 5% for each additional full year of service above the ten (10) years of service, and that this offer be extended as an option to safety and safety management groups, at their discretion, in addition to the related options provided in the Vernon Firefighters Association MOU and the Vernon Police Officers’ Benefit Association MOU. Resolution 2013-06 declared that the retiree medical benefits which had not been a vested right for employees will continue to be nonvested right for employees who continue to be employed by the City on or after July 1, 2013, but will become a vested right for those who retire during the 2012-2013 fiscal year. The City’s plan is considered a substantive OPEB plan and the City recognizes cost in accordance with GASB Statement No 75. The City may terminate its unvested OPEB in the future. Contributions The City has established an irrevocable OPEB trust with assets dedicated to paying future retiree medical benefits. The City intends to contribute 100% or more of the actuarially determined contribution for the explicit subsidy liability only. The portion of the liability due to the implicit subsidy is not prefunded but is paid as benefits come due. For the fiscal year ended June 30, 2023, the VPU’s proportionate share of contribution made to the trust was $354,744, and $362,434 for retiree premiums, resulting in a total contribution of $717,178. . . Item 11 Page 73 of 96 City of Vernon Vernon Public Utilities Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023 48 Note 10 – Other Postemployment Benefits (“OPEB”) (Continued) B. Net OPEB Liabilities, OPEB Expenses, and Deferred Outflows/Inflows of resources related to OPEB The OPEB liability was measured as of June 30, 2022, and total liability used to calculate the net OPEB liability was determined by an actuarial valuation as of June 30, 2022. Significant Actuarial Assumptions Used for Total OPEB Liability The total OPEB liability, measured as of June 30, 2022, was determined using the following actuarial assumptions: Actuarial Cost Method Actuarial Assumptions: Asset Valuation Method Inflation Salary Increases Long Term return on Assets Discount Rate Mortality Improvement Healthcare Trend CalPERS 2021 Experience Study; Project with MP Scale Based on 2022 Getzen model with in inflation rate of 7.00% non-Medicare / 5.50% Medicare decreasing gradually to an ultimate rate of 3.73% by 2075 6.00% Entry Age Normal Market value of assets 2.30% 2.80% wage inflation plus seniority, merit, and promotion salary increases based on CalPERS Expenditure Study and Review of Actuarial Assumptions published in November 2021 6.00% Change in assumptions Discount rate changed from 6.25% at June 30, 2021 to 6.00% at June 30, 2022. Healthcare trend rate assumption and mortality improvement scale were updated. Discount Rate The discount rate used to measure the total OPEB liability was 6.00%. The projection of cash flows used to determine the discount rate assumed that City contributions will be made at rates equal to the actuarially determined contribution rates. Based on those assumptions, the OPEB plan's fiduciary net position was projected to be available to make all projected OPEB payments for current active and inactive employees and beneficiaries. Therefore, the long-term expected rate of return on OPEB plan investments was applied to all periods of projected benefit payments to determine the total OPEB liability. Long-Term Expected Rate of Return Long-term Target Expected Real Asset Class Allocation Rate of Return Global Equity 49.00% 4.50% Fixed Income 23.00% 1.40% Global Real Estate (REITs) 20.00% 3.70% Treasury Inflation Protected Securities (TIPS) 5.00% 0.50% Commodities 3.00% 1.10% Total 100.00% * Preliminary estimate, pending confirmation by CalPERS . . Item 11 Page 74 of 96 City of Vernon Vernon Public Utilities Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023 49 Note 10 – Other Postemployment Benefits (“OPEB”) (Continued) B. Net OPEB Liabilities, OPEB Expenses, and Deferred Outflows/Inflows of resources related to OPEB (Continued) The VPU’s proportionate share of the net OPEB liability as of the measurement dates ended June 30, 2021 and 2022 was as follows: Total OPEB Plan Fiduciary Net Net OPEB Liability Position Liability/(Asset) Proportionate (a) (b) (c) = (a) - (b) Share Balance at June 30, 2021 5,153,673$ 2,072,760$ 3,080,913$ 18.82% Balance at June 30, 2022 (Measurement Date) 6,299,907 2,522,106 3,777,801 23.05% Net changes during 2021-22 1,146,234$ 449,346$ 696,888$ 4.23% Sensitivity of the Net OPEB Liability to Changes in the Discount Rate The following presents the VPU’s proportionate share of the net OPEB liability if it were calculated using a discount rate that is 1% point lower (5.00%) or 1% point higher (7.00%) than the current rate: Discount Rate Current Discount Discount Rate -1% (5.00%) Rate (6.00%) +1 % (7.00%) 4,493,670$ 3,777,800$ 3,177,646$ Plan's Net OPEB Liability Sensitivity of the Net OPEB Liability to Changes in the Healthcare Cost Trend Rates The following presents the VPU’s proportionate share of the net OPEB liability if it were calculated using a healthcare cost trend rates that are 1% point lower (5.3% decreasing to an ultimate rate of 2.8%) or 1% point higher (7.3% decreasing to an ultimate rate of 4.8%) than the current rate: Healthcare Cost Healthcare Cost Healthcare Cost Trend Rate - 1% Trend Rate Trend Rate + 1% 3,503,535$ 3,777,800$ 4,043,154$ Plan's Net OPEB Liability OPEB Expense and Deferred Inflows and Outflows of Resources Related to OPEB For the year ended June 30, 2023, the VPU recognized its proportionate share of the OPEB credit of $(161,730). At June 30, 2023, the VPU reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: Deferred Outflows Deferred Inflows of Resources of Resources Contribution made after measurement period 717,178$ -$ Changes in assumptions 190,784 (592,146) Difference between expected and actual experience 24,230 (798,073) Net difference between projected and actual earning on OPEB plan investments 238,302 - Total 1,170,494$ (1,390,219)$ . . Item 11 Page 75 of 96 City of Vernon Vernon Public Utilities Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023 50 Note 10 –Other Postemployment Benefits (“OPEB”) B. Net OPEB Liability, OPEB Expenses, and Deferred Outflows/Inflows of resources related to OPEB (Continued) OPEB Expense and Deferred Inflows and Outflows of Resources Related to OPEB (Continued) The $717,178 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net OPEB liability in the year ended June 30, 2024. Differences between projected and actual investment earnings are amortized on a five-year straight-line basis and all other amounts are amortized over the expected average remaining service lives of all members that are provided with benefits. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized as OPEB expense as follows: Deferred M easurement Period Outflows/(Inflows) Ending June 30 of Resources 2023 (450,496)$ 2024 (447,316) 2025 (54,953) 2026 72,699 2027 (38,486) Thereafter (18,351) Total (936,903)$ Payable to the OPEB Plan At June 30, 2023, the VPU had no outstanding amount of contributions to the OPEB plan required for the year ended June 30, 2023. Note 11 – Southern California Public Power Authority The Southern California Public Power Authority (“SCPPA”) was formed in 1980 as a not for profit joint powers agency. SCPPA is currently comprised of 11 Southern California cities and an irrigation district. The SCPPA’s purpose is planning, financing, acquiring, constructing, and operating of projects that generate or transmit electric energy for sale to its participants. The joint powers agreement has a term expiring in 2030 or such later date as all bonds and notes of SCPPA and interest thereon have been paid in full or adequate provisions for payments have been made. A copy of SCPPA’s audited financial statements can be reviewed on their website at www.scppa.org or can be obtained by written request at 1160 Nicole Ct Glendora, CA 91740. A. Take or Pay Contract The SCPPA’s interest of entitlements in natural gas generation, and transmission projects are jointly owned with other utilities. Under these arrangements, a participating member has an undivided interest in a utility plant and is responsible for its proportionate share of the costs of construction and operation and is entitled to its proportionate share of the energy, available transmission capacity, or natural gas produced. Each joint plant participant, including the SCPPA, is responsible for financing its share of construction and operating costs. The City has the following “take or pay” contract with the SCPPA: . . Item 11 Page 76 of 96 City of Vernon Vernon Public Utilities Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023 51 Note 11 – Southern California Public Power Authority (Continued) A. Take or Pay Contract (Continued) Palo Verde Project The SCPPA purchases a 5.91% interest in the Palo Verde Nuclear Generating Station (the “Station”), a nuclear- fired generating station near Phoenix, Arizona, from Salt River Project Agricultural Improvement and Power District, and a 6.55% share of the right to use certain portions of the Arizona Nuclear Power Project Valley Transmission System. The City has a 4.9% entitlement share of the SCPPA’s interest in the station. Between 1983 and 2008, the SCPPA issued $3.266 billion in debt of Power Project Revenue Bonds for the Station to finance the bonds and the purchase of the SCPPA’s share of the Station and related transmission right. The bonds are not obligations of any member of the SCPPA or public agency other than the SCPPA. Under a power sales contract with the SCPPA, the City is obliged on a “take or pay” basis for its proportionate share of power generated, as well as to make payments for its proportionate share of the operating and maintenance expenses of the Station, debt service on the bonds and any other debt, whether or not the project or any part thereof or its output is suspended, reduced or terminated. The City took its proportionate share of the power generated and its proportionate share of costs during the fiscal year 2023 was $3,730,000. The City expects no significant increases in costs related to its nuclear resources. B. Power Purchase Commitments The SCPPA has entered into power purchase agreements with project participants. These agreements are substantially “take-and-pay” contracts where there may be other obligations not associated with the of energy. The City has entered into power purchase agreements with the SCPPA related to the following projects: Astoria 2 Solar Project On July 23, 2014, the SCPPA entered into a power purchase agreement with Recurrent Energy for solar energy from the Astoria 2 Solar Project. SCPPA is entitled to 35 MW of photovoltaic generating capacity from commercial operation to December 31, 2021 and 45 MW of generating capacity from January 1, 2022 until the expected expiration date of December 31, 2036. The commercial operation date was December 2016. Power and Water Resources Pooling SCPPA, Lodi, Corona, Moreno Valley, and Rancho Cucamonga, are each buying the output of a separate portion of the facility, which is located in Kern County, California. SCPPA has purchase options in the 10th, 15th, and 20th Contract Years. The project is forecasted to start at a capacity factor of 31% with a 0.5% annual degradation. ACES Power Marketing is the third-party scheduling coordinator for the project. The City contracted to purchase 57.1429% until December 31, 2021, and 66.6667% thereafter, of the output. The City’s proportionate share of costs for fiscal year 2023 was $10,114,000. Puente Hills Landfill Gas-to-Energy Project On June 25, 2014, the SCPPA entered into a power purchase agreement with County Sanitation District No. 2 of Los Angeles County for 46 MW of the electric generation from a landfill gas to energy facility, located at Whittier, California. The project began deliveries to the SCPPA on January 1, 2017 for a term of 10 years. The City contacted to purchase 23.2558% of the output. The City’s proportional share of the costs during fiscal year 2023 was $6,616,000. . . Item 11 Page 77 of 96 City of Vernon Vernon Public Utilities Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023 52 Note 11 – Southern California Public Power Authority (Continued) B. Power Purchase Commitments (Continued) Antelope DSR 1 Solar Project On July 16, 2015, the SCPPA, entered into a power purchase agreement with Antelope DSR 1, LLC for 50 MW solar photovoltaic generating capacity from the Antelope DSR 1 Solar Facility. The facility is located near Lancaster, California, and commercial operation occurred on December 16, 2016 for a term of 20 years. The City’s proportionate share of costs during fiscal year 2023 was $6,124,000. Hoover Dam Hydroelectric Power Plant The Hoover Dam Hydroelectric Power Plant is located on the Arizona-Nevada border, approximately 25 miles southeast of Las Vegas. This hydropower plant is part of the larger Hoover Dam facility, which was completed in 1935 and controls the flow of the Colorado River. The Hoover Dam facility consists of 17 generating units and two service generating units with a total installed capacity of 2,080 MW. In 1987, Vernon entered a power purchase agreement to purchase 22 MW of firm capacity from the Western Area Power Administration. SCPPA and other contractor allocations of Hoover power have been extended for 50 years beyond the power purchase agreement’s original expiration in 2017, which now expires in 2067. The City’s proportionate share of costs during fiscal year 2023 was $574,973. Desert Harvest 2 REC Solar PV Project On December 17, 2020, SCPPA executed a power purchase agreement with EDF Renewables for 70 MW of solar PV capacity from the Desert Harvest 2 Solar PV project. The project is a fixed-tilt PV system that interconnects at the Marketplace substation and is located on 1,200 acres of Bureau of Land Management land in Desert Center, California. The REC + Index agreement serves the cities of Anaheim, Burbank, and Vernon. VPU is entitled to 17.14 percent of the Project’s output or about 12 MW. This power purchase agreement, which expires at the end of 2045, only provides renewable energy credits (RECs). The City’s proportionate share of costs during fiscal year 2023 was $627,755. Daggett Solar PV and BESS Project The Daggett Solar plus BESS project is a single‑axis tracker 65 MW solar with a 33 MW 4‑hour Lithium‑Ion BESS. The commercial operation date was December 12, 2023. The project, located in the City of Daggett in San Bernardino County, is a portion of an approximately 482 MW solar PV facility. The project is being developed by Clearway Energy Group and is owned by Daggett Solar Power 2 LLC. On June 24, 2022, SCPPA executed a PPA for 65 MW for the cities of Vernon and Cerritos. The PPA entitles VPU to 60 MW of solar PV output and 30 MW of energy storage. The power purchase agreement expires on December 31, 2044. Sapphire Solar Project On January 17, 2023, the SCPPA, entered into a power purchase agreement with EDF Renewables North America for 39 MW solar power and up to approximately 19.7 MW of battery storage with associated green attributes through the Sapphire Solar Project for a projected annual amount of $6,665,000 over a 20-year term. The expected start date of the project is December 31, 2025. . . Item 11 Page 78 of 96 REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED) 53 . . Item 11 Page 79 of 96 Fiscal year 2017 2018 2019 2020 2021 Measurement period 2015-16 2016-17 2017-18 2018-19 2019-20 VPU's proportion of the net pension liability 15.41% 15.55% 14.86% 15.47% 16.99% VPU's proportionate share of the net pension liability 14,675,830$ 17,052,279$ 16,866,107$ 18,692,374$ 22,982,998$ Covered payroll2 2,026,477$ 4,210,103$ 4,577,147$ 4,418,536$ 4,203,972$ VPU's proportionate share of the net pension liability as a percentage of covered payroll 724.20% 405.03% 368.49% 423.04% 546.70% VPU Fiduciary Net Position as a percentage of the total pension liability 78.91% 77.85% 77.68% 76.15% 74.79% 1 2 Notes to Schedule: Methods and assumptions used to determine contribution rates: Actuarial cost method Entry Age Actuarial Cost Method Amortization method Level percentage of payroll Asset valuation method Fair Market Value Inflation 2.500% Salary increases varies by entry age and service Payroll Growth 2.750% Investment rate of return Retirement age Mortality The probabilities of Retirement are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre-retirement and Post-retirement mortality rates include 15 years of projected mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries. City of Vernon Required Supplementary Information (Unaudited) Schedule of Proportionate Share of the Net Pension Liability and Related Ratios Includes one year’s payroll growth using 2.80 percent payroll growth assumption for fiscal years ended June 30, 2022; 2.75 percent payroll growth assumption for fiscal years ended June 30, 2018-21; 3.00 percent payroll growth assumption for fiscal years ended June 30, 2015-17. The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2022-23 were derived from the June 30, 2020 funding valuation report. 7% Net of Pension Plan Investment and Administrative Expenses; includes Inflation. Vernon Public Utilities Last Ten Fiscal Years1 California Public Employees' Retirement System Defined Pension Plan For the Year Ended June 30, 2023 Fiscal year ended June 30, 2017 was the first fiscal year the City allocated a portion of the net pension liability to the VPU. Additional years of information will be displayed as it becomes available. 54 . . Item 11 Page 80 of 96 Fiscal year 2022 2023 Measurement period 2020-21 2021-22 VPU's proportion of the net pension liability 18.82% 23.05% VPU's proportionate share of the net pension liability 16,563,816$ 36,362,766$ Covered payroll2 3,902,610$ 4,967,127$ VPU's proportionate share of the net pension liability as a percentage of covered payroll 424.43% 732.07% VPU Fiduciary Net Position as a percentage of the total pension liability 85.45% 69.30% City of Vernon Required Supplementary Information (Unaudited) Schedule of Proportionate Share of the Net Pension Liability and Related Ratios (Continued) Vernon Public Utilities For the Year Ended June 30, 2023 Last Ten Fiscal Years1 California Public Employees' Retirement System Defined Pension Plan (Continued) 55 . . Item 11 Page 81 of 96 Fiscal year 2017 2018 2019 2020 2021 Actuarially determined contribution 1,403,235$ 1,475,490$ 1,622,690$ 1,908,522$ 2,145,491$ Contributions in relation to the actuarially determined contribution (1,403,235) (1,475,490) (1,622,690) (1,908,522) (2,145,491) Contribution deficiency (excess) -$ -$ -$ -$ -$ Covered payroll2 4,210,103$ 4,577,147$ 4,418,536$ 4,203,972$ 3,902,610$ Contributions as a percentage of covered payroll 33.33% 32.24% 36.72% 45.40% 54.98% 1 2 Notes to Schedule: Methods and assumptions used to determine contribution rates: Actuarial cost method Entry Age Actuarial Cost Method Amortization method Level percentage of payroll Asset valuation method Fair Market Value Inflation 2.500% Salary increases varies by entry age and service Payroll Growth 2.750% Investment rate of return Retirement age Mortality The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2022-23 were derived from the June 30, 2020 funding valuation report. 7% Net of Pension Plan Investment and Administrative Expenses; includes Inflation. The probabilities of Retirement are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre-retirement and Post-retirement mortality rates include 15 years of projected mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries. City of Vernon Includes one year’s payroll growth using 2.80 percent payroll growth assumption for fiscal years ended June 30, 2022; 2.75 percent payroll growth assumption for fiscal years ended June 30, 2018-21; 3.00 percent payroll growth assumption for fiscal years ended June 30, 2015-17. Required Supplementary Information (Unaudited) Schedule of Contributions - Pensions Vernon Public Utilities For the Year Ended June 30, 2023 Last Ten Fiscal Years1 California Public Employees' Retirement System Defined Pension Plan Fiscal year ended June 30, 2017 was the first year the City allocated a portion of the net position to the VPU. Additional years will be displayed as it becomes available. 56 . . Item 11 Page 82 of 96 Fiscal year 2022 2023 Actuarially determined contribution 2,674,893$ 3,717,613$ Contributions in relation to the actuarially determined contribution (2,674,893) (3,717,613) Contribution deficiency (excess)-$ -$ Covered payroll2 4,967,127$ 5,106,207$ Contributions as a percentage of covered payroll 53.85% 72.81% City of Vernon Required Supplementary Information (Unaudited) Schedule of Contributions - Pensions (Continued) Vernon Public Utilities For the Year Ended June 30, 2023 Last Ten Fiscal Years1 California Public Employees' Retirement System Defined Pension Plan (Continued) 57 . . Item 11 Page 83 of 96 Fiscal year 2018 2019 2020 2021 2022 Measurement period 2016-171 2017-18 2018-19 2019-20 2020-21 VPU's proportion of the net OPEB liability 15.55% 14.86% 15.47% 16.99% 18.82% VPU's proportionate share of the net OPEB liability 3,887,475$ 3,432,725$ 3,391,408$ 3,433,306$ 3,080,913$ Covered - employee payroll 3,588,945$ 3,587,387$ 5,228,211$ 4,944,915$ 5,385,241$ VPU's proportionate share of the net OPEB liability as a percentage of covered - employee payroll 108.32% 95.69% 64.87% 69.43% 57.21% VPU's fiduciary net position as a percentage of the total OPEB liability 2.83% 8.62% 16.30% 25.70% 40.20% 1 City of Vernon Vernon Public Utilities Required Supplementary Information (Unaudited) Schedule of Proportionate Share of the Net Other Postemployment For the Year Ended June 30, 2023 Last Ten Fiscal Years1 Benefits Liability and Related Ratios Other Postemployment Benefits ("OPEB") Plan Historical information is presented only for measurement periods after GASB 75 was implemented in fiscal year of 2017-18 (measurement period of 2016-17). Additional years of information will be displayed as it becomes available. 58 . . Item 11 Page 84 of 96 Fiscal year 2023 Measurement period 2021-22 VPU's proportion of the net OPEB liability 23.05% VPU's proportionate share of the net OPEB liability 3,777,800$ Covered - employee payroll 5,850,485$ VPU's proportionate share of the net OPEB liability as a percentage of covered - employee payroll 64.57% VPU's fiduciary net position as a percentage of the total OPEB liability 40.03% City of Vernon Vernon Public Utilities Required Supplementary Information (Unaudited) Schedule of Proportionate Share of the Net Other Postemployment For the Year Ended June 30, 2023 Last Ten Fiscal Years1 Benefits Liability and Related Ratios (Continued) Other Postemployment Benefits ("OPEB") Plan (Continued) 59 . . Item 11 Page 85 of 96 Fiscal year 2018 2019 2020 2021 2022 Actuarially determined contribution 288,398$ 400,166$ 298,886$ 261,372$ 289,525$ Contributions in relation to the actuarially determined contribution (221,199) (444,230) (605,820) (531,940) (551,938) Contribution deficiency (excess) 67,199$ (44,064)$ (306,934)$ (270,568)$ (262,413)$ Covered-employee payroll 3,587,387$ 5,228,211$ 4,944,915$ 5,385,241$ 5,850,485$ Contributions as a percentage of covered-employee payroll 6.17% 8.50% 12.25% 9.88% 9.43% 1 Notes to Schedule: Methods and assumptions used to determine contribution rates: Actuarial cost method Entry Age Normal Cost Method Amortization method Level percentage of payroll Asset valuation method Market valuation of assets Discount Rate 6.25% Payroll Growth 3.00% General Inflation Rate 2.5% per year Health Trend 5.6 in FY2023, step down 0.5% per year to 3.9% by 2076 The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2022-23 were derived from the June 30, 2020 funding valuation report. Historical information is presented only for measurement periods after GASB 75 was implemented in fiscal year of 2017-18 (measurement period of 2016-17). Additional years of information will be displayed as it becomes available. City of Vernon Required Supplementary Information (Unaudited) Schedule of Contributions - Other Postemployment Benefits For the Year Ended June 30, 2023 Last Ten Fiscal Years1 Other Postemployment Benefits ("OPEB") Plan Vernon Public Utilities 60 . . Item 11 Page 86 of 96 Fiscal year 2023 Actuarially determined contribution 323,302$ Contributions in relation to the actuarially determined contribution (717,178) Contribution deficiency (excess)(393,876)$ Covered-employee payroll 5,644,571$ Contributions as a percentage of covered-employee payroll 12.71% City of Vernon Required Supplementary Information (Unaudited) Schedule of Contributions - Other Postemployment Benefits (Continued) For the Year Ended June 30, 2023 Last Ten Fiscal Years1 Other Postemployment Benefits ("OPEB") Plan (Continued) Vernon Public Utilities 61 . . Item 11 Page 87 of 96 This page intentionally left blank. 62 . . Item 11 Page 88 of 96 SUPPLEMENTARY INFORMATION 63 . . Item 11 Page 89 of 96 Electric Gas Water Fiber Optics Eliminating Fund Fund Fund Fund Entry Total ASSETS Current assets: Cash and investments 117,511,564$ 16,776,807$ 17,994,763$ 1,090,890$ -$ 153,374,024$ Accounts receivable, net 13,592,491 191,638 943,517 33,053 - 14,760,699 Interest receivable 367,547 - 8,928 - - 376,475 Accrued unbilled revenue 17,231,152 1,025,232 1,515,524 - - 19,771,908 Due from other government 8,829 - - - - 8,829 Due from other City fund - - 18,247 36 (18,247) 36 Prepaid expenses 159,007 - 4,330 - - 163,337 Inventory 570,202 - - - - 570,202 Total current assets 149,440,792 17,993,677 20,485,309 1,123,979 (18,247) 189,025,510 Noncurrent assets: Restricted cash and investments 34,278,926 - 2,148,689 - - 36,427,615 Advances to other funds 33,926,562 - - - (33,926,562) - Prepayment to Southern California Public Power Authority 977,070 - - - - 977,070 Deposits 2,101,130 - - - - 2,101,130 Capital assets: Capital assets, not being depreciated 63,837,963 - 11,111,271 266,172 - 75,215,406 Capital assets, being depreciated, net 362,862,804 14,672,800 11,302,440 1,012,929 - 389,850,973 Total capital assets 426,700,767 14,672,800 22,413,711 1,279,101 - 465,066,379 Total noncurrent assets 497,984,455 14,672,800 24,562,400 1,279,101 (33,926,562) 504,572,194 Total assets 647,425,247 32,666,477 45,047,709 2,403,080 (33,944,809) 693,597,704 DEFERRED OUTFLOW OF RESOURCES Pension related 11,703,498 860,759 1,821,009 13,740 - 14,399,006 Other postemployment benefits related 951,376 69,971 148,030 1,117 - 1,170,494 Deferred charges on refunding 1,731,362 - - - - 1,731,362 Total deferred outflow of resources 14,386,236$ 930,730$ 1,969,039$ 14,857$ -$ 17,300,862$ (Continued) City of Vernon Vernon Public Utilities Combining Statement of Net Position June 30, 2023 See accompanying Notes to the Basic Financial Statements. 64 . . Item 11 Page 90 of 96 Electric Gas Water Fiber Optics Eliminating Fund Fund Fund Fund Entry Total LIABILITIES Current liabilities: Accounts payable 14,053,698$ 53,542$ 1,279,568$ 10,683$ -$ 15,397,491$ Accrued wages and benefits 369,773 21,106 31,872 - - 422,751 Accrued interest payable 6,826,980 - 237,281 - - 7,064,261 Due to other funds 2,953,113 - 110,329 - (18,247) 3,045,195 Customer deposits payable 410,497 13,558 236,888 - - 660,943 Compensated absences, due within one year 334,712 14,283 34,155 178 - 383,328 Bonds payable, due within one year 51,835,000 - 265,000 - - 52,100,000 Note payable, due within one year - - 139,535 - - 139,535 Total current liabilities 76,783,773 102,489 2,334,628 10,861 (18,247) 79,213,504 Noncurrent liabilities: Advances from other funds - 29,405,104 - 4,521,458 (33,926,562) - Compensated absences, due in more than one year 669,422 28,567 68,311 356 - 766,656 Bonds payable, due in more than one year 338,642,538 - 14,601,753 - - 353,244,291 Note payable, due in more than one year - - 941,860 - - 941,860 Net pension liability 29,555,620 2,173,732 4,598,715 34,699 - 36,362,766 Net other postemployment benefits liability 3,070,592 225,833 477,770 3,605 - 3,777,800 Total noncurrent liabilities 371,938,172 31,833,236 20,688,409 4,560,118 (33,926,562) 395,093,373 Total liabilities 448,721,945 31,935,725 23,023,037 4,570,979 (33,944,809) 474,306,877 DEFERRED INFLOWS OF RESOURCES Pension related 1,479,229 108,793 230,161 1,737 - 1,819,920 Other postemployment benefits related 1,129,968 83,106 175,818 1,327 - 1,390,219 Total deferred inflows of resources 2,609,197 191,899 405,979 3,064 - 3,210,139 NET POSITION Net investment in capital assets 167,320,725 14,672,800 8,238,110 1,279,101 - 191,510,736 Restricted for: Debt service 33,955,595 - 160,440 - - 34,116,035 Assembly Bill 1890 2,933,017 - - - - 2,933,017 Unrestricted (deficit)6,271,004 (13,203,217) 15,189,182 (3,435,207) - 4,821,762 Total net position 210,480,341$ 1,469,583$ 23,587,732$ (2,156,106)$ -$ 233,381,550$ (Concluded) City of Vernon Vernon Public Utilities Combining Statement of Net Position (Continued) June 30, 2023 See accompanying Notes to the Basic Financial Statements. 65 . . Item 11 Page 91 of 96 This page intentionally left blank. 66 . . Item 11 Page 92 of 96 Electric Gas Water Fiber Optics Fund Fund Fund Fund Totalp OPERATING REVENUES: Charges for services 233,135,904$ 19,064,515$ 9,844,537$ 525,140$ 262,570,096$ Total operating revenues 233,135,904 19,064,515 9,844,537 525,140 262,570,096 OPERATING EXPENSES: Cost of sales 151,898,323 17,474,385 6,226,053 272,564 175,871,325 Depreciation expense 22,734,810 706,361 575,512 210,161 24,226,844 Total operating expenses 174,633,133 18,180,746 6,801,565 482,725 200,098,169 OPERATING INCOME 58,502,771 883,769 3,042,972 42,415 62,471,927 NONOPERATING REVENUES (EXPENSES): Investment income 4,198,611 181,160 327,529 5,998 4,713,298 Net decrease in fair value of investments (1,626) - - - (1,626) Interest expense (14,190,777) - (551,437) - (14,742,214) Transfers to the City of Vernon (491,542) - - - (491,542) Gain (loss) on disposal of assets (1,004,046) - 14,889 - (989,157) Total nonoperating revenues (expenses)(11,489,380) 181,160 (209,019) 5,998 (11,511,241) CHANGE IN NET POSITION 47,013,391 1,064,929 2,833,953 48,413 50,960,686 NET POSITION: Beginning of year 163,466,950 404,654 20,753,779 (2,204,519) 182,420,864 End of year 210,480,341$ 1,469,583$ 23,587,732$ (2,156,106)$ 233,381,550$ City of Vernon Vernon Public Utilities Combining Statement of Revenues, Expenses, and Changes in Net Position For the Year Ended June 30, 2023 See accompanying Notes to the Basic Financial Statements. 67 . . Item 11 Page 93 of 96 Electric Gas Water Fiber Optics Fund Fund Fund Fund Total CASH FLOWS FROM OPERATING ACTIVITIES: Cash receipts from customers and users 230,220,383$ 19,668,732$ 9,900,629$ 636,340$ 260,426,084$ Cash paid to suppliers for goods and services (137,074,541) (16,731,644) (5,024,168) (272,394) (159,102,747) Cash paid to employees for services (13,451,748) (1,141,181) (2,053,190) (14,536) (16,660,655) Net cash provided by operating activities 79,694,094 1,795,907 2,823,271 349,410 84,662,682 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Transfer to the City (491,542) - - - (491,542) Receipt from other funds 61,570 6,178,906 294,880 667,766 7,203,122 Payment to other funds (6,858,636) (71,583) - (36) (6,930,255) Net cash provided by (used in) noncapital financing activities (7,288,608) 6,107,323 294,880 667,730 (218,675) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Acquisition of capital assets (24,759,717) - (6,721,212) (426,102) (31,907,031) Proceed from sale of capital assets 37,406 - 14,889 - 52,295 Principal paid on long-term debt (50,110,000) - (389,535) - (50,499,535) Interest paid on long-term debt (19,480,488) - (575,726) - (20,056,214) Net cash (used in) capital and related financing activities (94,312,799) - (7,671,584) (426,102) (102,410,485) CASH FLOWS FROM INVESTING ACTIVITIES: Interest received 3,914,187 181,160 323,049 5,998 4,424,394 Net cash provided by investing activities 3,914,187 181,160 323,049 5,998 4,424,394 Net increase (decrease) in cash and cash equivalents (17,993,126) 8,084,390 (4,230,384) 597,036 (13,542,084) CASH AND CASH EQUIVALENTS: Beginning of year 169,783,616 8,692,417 24,373,836 493,854 203,343,723 End of year 151,790,490$ 16,776,807$ 20,143,452$ 1,090,890$ 189,801,639$ CASH AND CASH EQUIVALENTS: Cash and investment 117,511,564$ 16,776,807$ 17,994,763$ 1,090,890$ 153,374,024$ Restricted cash and investment 34,278,926 - 2,148,689 - 36,427,615 Total cash and cash equivalents 151,790,490$ 16,776,807$ 20,143,452$ 1,090,890$ 189,801,639$ (Continued) City of Vernon Vernon Public Utilities Combining Statement of Cash Flows For the Year Ended June 30, 2023 See accompanying Notes to the Basic Financial Statements. 68 . . Item 11 Page 94 of 96 Electric Gas Water Fiber Optics Fund Fund Fund Fund Total OPERATING INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES: Operating income 58,502,771$ 883,769$ 3,042,972$ 42,415$ 62,471,927$ Adjustments to reconcile operating income to net cash provided by operating activities: Depreciation 22,734,810 706,361 575,512 210,161 24,226,844 Change in assets and liabilities: (Increase) decrease in accounts receivable (1,196,444) 388,462 198,421 111,200 (498,361) (Increase) decrease in accrued unbilled revenue (819,370) 215,755 (142,329) - (745,944) (Increase) decrease in inventories and prepaid items (56,968) - (4,330) - (61,298) (Increase) decrease in customer deposits (899,707) - - - (899,707) (Increase) decrease in deferred outflows of resources related to pension (7,687,121) (463,477) (903,730) (5,881) (9,060,209) (Increase) decrease in deferred outflows of resources related to OPEB (453,246) (20,698) (34,265) (142) (508,351) Increase (decrease) in accounts payable (1,774,693) (161,580) (135,694) (3,051) (2,075,018) Increase (decrease) in accrued wages and benefits 35,859 (6,926) (12,423) (363) 16,147 Increase (decrease) in deposits payable (14,929) - 175,704 - 160,775 Increase (decrease) in compensated absences (104,689) 17,719 18,258 291 (68,421) Increase (decrease) in net pension liabilities 17,094,440 941,127 1,752,772 10,315 19,798,654 Increase (decrease) in OPEB liabilities 752,822 (3,431) (51,573) (931) 696,887 Increase (decrease) in deferred inflows of resources related to pension (6,362,346) (666,861) (1,560,735) (13,608) (8,603,550) Increase (decrease) in deferred inflows of resources related to OPEB (57,095) (34,313) (95,289) (996) (187,693) Total adjustment 21,191,323 912,138 (219,701) 306,995 22,190,755 Net cash provided by operating activities 79,694,094$ 1,795,907$ 2,823,271$ 349,410$ 84,662,682$ (Concluded) Combining Statement of Cash Flows (Continued) City of Vernon Vernon Public Utilities For the Year Ended June 30, 2023 See accompanying Notes to the Basic Financial Statements. 69 . . Item 11 Page 95 of 96 This page intentionally left blank. 70 . . Item 11 Page 96 of 96 Electric Enterprise Fund of the City of Vernon Vernon, California Financial Statements and Independent Auditors’ Reports For the Year Ended June 30, 2023 . . Item 11 Page 1 of 84 . . Item 11 Page 2 of 84 Electric Enterprise Fund of the City of Vernon For the Year Ended June 30, 2023 Table of Contents Page INTRODUCTORY SECTION (UNAUDITED): A Message From The General Manager of Vernon Public Utilities .................................................................... i FINANCIAL SECTION: Independent Auditors’ Report on the Audit of the Financial Statements ........................................................... 1 Management’s Discussion and Analysis (Required Supplementary Information) (Unaudited) ....................... 5 Basic Financial Statements: Statement of Net Position ............................................................................................................................ 12 Statement of Revenues, Expenses, and Changes in Net Position ................................................................ 15 Statement of Cash Flows ............................................................................................................................. 16 Notes to the Basic Financial Statements ...................................................................................................... 23 Required Supplementary Information (Unaudited): Schedule of Proportionate Share of the Net Pension Liability and Related Ratios ........................................... 50 Schedule Contributions – Pensions .................................................................................................................... 52 Schedule of Proportionate Share of the Net Other Postemployment Benefits Liability and Related Ratios ..... 54 Schedule Contributions – Other Postemployment Benefits ............................................................................... 56 . . Item 11 Page 3 of 84 This page intentionally left blank. . . Item 11 Page 4 of 84 i A Message From the General Manager Goes Here. . . Item 11 Page 5 of 84 ii . . Item 11 Page 6 of 84 iii . . Item 11 Page 7 of 84 iv ELECTRIC FUND Introduction Vernon Public Utilities (VPU) remains dedicated to its core mission of providing reliable, safe, and affordable energy while meeting California's clean energy goals. VPU is building a full-service utility that embraces emerging technologies and capitalizes on strategic opportunities. VPU goes beyond electricity, offering water, natural gas, and fiber optic services. As a publicly owned utility, it prioritizes customer focus, responsible operations, and a sustainable future for the Vernon community. With local control, VPU ensures transparency, competitive rates, and tailored policies to serve the community's needs. In partnership with the local community, VPU is shaping a sustainable energy future for Vernon. Awards The American Public Power Association (APPA) designates Reliable Public Power Provider recognition (RP3) to utilities that demonstrate exceptional proficiency in four key areas: safety, reliability, workforce development, and system improvement. Consistent with its mission, VPU strives for excellence in these areas. APPA has awarded VPU its highest – Diamond Level – RP3 designation for three consecutive terms, encompassing nine years from 2016 to 2025. VPU earned these honors by providing exceptionally reliable and safe electric service. VPU is one of only 26 of the more than 2,000 public power utilities across the United States to achieve Diamond Level RP3 designation from 2022 to 2025. APPA also awarded VPU the Safety Award for Excellence every year since 2018, recording no reportable safety incidents for 2023. Reliability VPU emphasizes operational reliability as a cornerstone of its strategic vision. VPU utilizes IEEE’s beta methodology to track reliability metrics to assess and enhance the resilience and dependability of VPU’s services. By tracking and analyzing key reliability indicators, VPU proactively identifies areas for improvement, allocates resources effectively, and implements targeted strategies to maintain an unwavering commitment to providing consistent and uninterrupted power supply to its valued customers. . . Item 11 Page 8 of 84 v Three Reliability Indicators VPU tracks three reliability indicators that the electric utility industry uses to assess and improve the performance of power distribution systems. System Average Interruption Frequency Index (SAIFI) Quantifies the frequency of power outages per customer within a year. System Average Interruption Duration Index (SAIDI) Measures the duration of power outages experienced by the average customer over a year. Customer Average Interruption Duration Index (CAIDI) Provides the average time it takes to restore power after an outage, calculated by dividing SAIDI by SAIFI. VPU leverages data and industry benchmarks to improve service quality, minimize downtime, and ensure a reliable power supply. VPU benchmarks its performance against data from the U.S. Energy Information Administration (EIA) to ensure alignment with industry standards and best practices. For the data year 2021, VPU’s average customer experienced 0.5 outages for 38.2 minutes. The restoration time was approximately 76.4 minutes. These metrics place VPU among the top 25 percent of the electric industry in reliability. Being in the top quartile of electric utility reliability benchmarking signifies VPU’s commitment to excellence, ensuring that the utility consistently delivers dependable service, promotes customer satisfaction, and contributes positively to the overall health of the community it serves. . . Item 11 Page 9 of 84 vi Cause of Outages Virtually all outages in the City of Vernon are from accidental causes. Contact with metallic balloons is the primary cause of outages (indicated as a “foreign object” in the chart below). The Other category includes single instances of storm damage, direct strike, and equipment damage. . . Item 11 Page 10 of 84 vii Energy Resources VPU’s generation portfolio continues to evolve with state mandates for renewable energy and zero- carbon generation. Vernon participates in the CAISO wholesale energy markets under a metered subsystem agreement (MSSA). Five years ago, natural gas generation from MGS and market purchases supplied approximately 59 percent of VPU’s energy resource mix. The remaining energy came from 7.7 percent nuclear, 1.6 percent large hydroelectric, and approximately 32 percent renewables. One of VPU’s central goals of the updated Integrated Resource Plan, approved by the City Council in October 2023, is to increase its renewable generation penetration to 60 percent by 2030 as directed by California statute. The chart below shows VPU’s Fiscal Year (FY) 2022-23 Energy Resource Mix. . . Item 11 Page 11 of 84 viii Natural Gas Resources Malburg Generating Station (MGS) MGS is a 139 MW combined-cycle (CC) plant in the City of Vernon. MGS includes two Siemens GTXI00 natural gas-fired combustion turbine generators (CTGs) and a steam turbine generator (STG). MGS has duct burners, evaporative inlet air coolers, and filters that enable the units to achieve higher levels of power output in selected modes of operation. H. Gonzales Generating Station Units 1 & 2 The H. Gonzales Generating Station Unit 1 and Unit 2, located within the City of Vernon, is a natural gas-fueled facility powered by two Allison 571-KA combustion turbines (CTs), each rated at 5.75 MW, operating solely as peaking units. Both CT units began commercial operation in 1988. Each unit is restricted by air quality regulators to run on natural gas for no more than six hours per day. . . Item 11 Page 12 of 84 ix Zero-Emission Resources Palo Verde Nuclear Station The Palo Verde Nuclear Generating Station (PVNGS) is in Tonopah, Arizona, approximately 55 miles west of Phoenix. It generates the largest capacity of electricity in the United States, with the second-largest rated capacity. The plant consists of three nuclear electric generating units totaling 3,937 MW. In 1981, VPU signed a “take or pay” contract with the Southern California Public Power Authority (SCPPA) for 11 MW of power from Palo Verde. Under the Power Purchase Agreement (PPA), VPU must pay for its proportionate share of power generated and operating and maintenance expenses, regardless of the amount of power taken. Hoover Dam Hydroelectric Power Plant The Hoover Dam Hydroelectric Power Plant is located on the Arizona-Nevada border, approximately 25 miles southeast of Las Vegas. This hydropower plant is part of the larger Hoover Dam facility, which was completed in 1935 and controls the flow of the Colorado River. The Hoover Dam facility consists of 17 generating units and two service generating units with a total installed capacity of 2,080 MW. In 1987, Vernon entered a PPA to purchase 22 MW of firm capacity from the Western Area Power Administration (WAPA). SCPPA and other contractor allocations of Hoover power have been extended for 50 years beyond the PPA’s original expiration in 2017, which now expires in 2067. . . Item 11 Page 13 of 84 x Renewable Energy Resources Puente Hills Landfill Gas Plant The Puente Hills Landfill Gas-to-Energy facility is a 46 MW conventional Rankine Cycle Steam Power Plant that uses landfill gas as fuel to generate electricity. The Los Angeles County Sanitation District (LACSD) constructed the facility and began full commercial operation in January 1987. SCPPA entered a PPA with LACSD for 43 MW of generating capacity from the facility. VPU, through SCPPA, is entitled to 10 MW of renewable capacity from the facility. The PPA expires on December 31, 2030. Astoria II Solar Photovoltaic Facility The Astoria II Solar PV facility is sited on approximately 840 acres between Los Angeles and Kern Counties, and interconnects with the CAISO system at the SCE Whirlwind Substation. The City of Vernon, in conjunction with five other SCPPA municipal utilities, participated in a PPA with Recurrent Energy to purchase the output from the Astoria II Solar facility for 20 years. The PPA entitled Vernon to 20 MW of capacity from January 2017 to December 2021. Starting in January 2022 and extending until the PPA’s expiration in December 2036, VPU is entitled to 30 MW of power. . . Item 11 Page 14 of 84 xi Antelope DSR 1 Solar PV Facility The Antelope DSR 1 Solar PV facility is in the City of Lancaster, Los Angeles County. It was developed by the Sustainable Power Group (sPower) and came online in December 2016. Through SCPPA, VPU owns a PPA with Antelope DSR 1 LLC (a subsidiary of sPower) for 25 MW of output, 50 percent of the facility’s 50 MW capacity, through December 31, 2036. In conjunction with the solar facility, the cities of Riverside and Vernon negotiated an energy storage option in the PPA, which provides for the potential to design, build, and operate an energy storage facility at the site when economically feasible. Desert Harvest 2 REC Solar PV Project On December 17, 2020, SCPPA executed a PPA with EDF Renewables for 70 MW of solar PV capacity from the Desert Harvest 2 Solar PV project. The project is a fixed-tilt PV system that interconnects at the Marketplace substation and is located on 1,200 acres of Bureau of Land Management (BLM) land in Desert Center, California. The REC + Index agreement serves the cities of Anaheim, Burbank, and Vernon. VPU is entitled to 17.14 percent of the Project’s output or about 12 MW. This PPA, which expires at the end of 2045, only provides renewable energy credits (RECs). . . Item 11 Page 15 of 84 xii Daggett Solar PV and BESS Project The Daggett Solar plus BESS project is a single-axis tracker 65 MW solar with a 33 MW 4-hour Lithium-Ion BESS. The commercial operation date (COD) was December 12, 2023. The project, located in the City of Daggett in San Bernardino County, is a portion of an approximately 482 MW solar PV facility. The project is being developed by Clearway Energy Group and is owned by Daggett Solar Power 2 LLC. On June 24, 2022, SCPPA executed a PPA for 65 MW for the cities of Vernon and Cerritos. The PPA entitles VPU to 60 MW of solar PV output and 30 MW of energy storage. The PPA expires on December 31, 2044. Sapphire Solar and BESS Project The Sapphire Solar project is a solar PV and BESS facility being developed by EDF Renewables. Located on 1,140 acres of private land in Riverside County, the project will generate 117 MW of solar power paired with a 59 MW 4-hour Lithium-Ion BESS with a total capacity of 236 MWh. The project will interconnect on an existing Desert Harvest transmission line and deliver to the CAISO System. The bundled energy products include renewable energy, RECs, Resource Adequacy, and other energy attributes. The estimated COD is December 31, 2026. VPU has executed a PPA for 39 MW of solar output combined with 19.67 MW of BESS. The PPA expires on December 1, 2046. . . Item 11 Page 16 of 84 xiii Distribution System Capital Improvement Plan Investing in infrastructure is crucial for a reliable electric utility. As such, Vernon proactively assesses its distribution system, identifying opportunities to bolster reliability, enhance safety, optimize efficiency, and increase operational flexibility. These upgrades will ensure a robust and adaptable electric distribution system, powering a brighter future for the City and its customers. For the past three years, from 2020 through 2023, VPU has been working on a distribution Capital Improvement Plan (CIP) focused on strengthening its infrastructure to prevent outages and grid resiliency to sustain reliability and maintain high service quality. The result is VPU’s Five-Year CIP, which is updated as part of the annual budget process. The plan focuses on infrastructure upgrades to help achieve a strategic vision that addresses its five-square-mile service territory and the unique industrial characteristics that make up the City. The plan defined strategies that involve in-depth evaluation of the condition of the electric system, performing detailed engineering analysis of distribution system capability and performance, and listed construction and upgrade projects to help transform the system into an intelligent, increasingly automated, and technologically advanced electric system. The CIP addresses the key areas and construction required for replacements or upgrades. The success of the CIP results in the improved electric system reliability provided to the City of Vernon residential and business customers. The plan also aims to reduce VPU's carbon footprint by removing greenhouse gas (GHG) emissions from the system. The plan includes replacing switches and circuit breakers that use sulfur hexafluoride (SF6) for insulation and leverages new technologies for replacing and upgrading these units. The plan aims to increase system . . Item 11 Page 17 of 84 xiv reliability for the local electric grid and environmental improvements for a sustainable future for the community. VPU estimates that the FY 2024-25 CIP is $25 million. . . Item 11 Page 18 of 84 xv Customer Service VPU continues to educate its business community on the importance of efficiency through its no-cost energy audit services. Over the years, businesses have successfully leveraged VPU's energy audit services to identify various efficiency opportunities. The utility's longstanding Custom Incentive Program has consistently provided incentives for commercial electric customers that implement efficiency upgrades that produce above building code savings. For FY 2022-23, VPU's energy efficiency programs generated 3,157 MWh of energy savings, along with $212,934 of efficiency rebates issued to VPU customers for lighting retrofits and refrigeration control upgrades. VPU has also been a key partner throughout the customer’s electrification journey, providing incentives and expertise in the transition towards increased sustainability and GHG emission reduction. In particular, the utility issued electric vehicle and charger rebates for customers who switched to all-electric equipment. In July 2023, the utility also opened its first fast charging depot at 3805 S. Soto Street to support the growing number of electric vehicles on the road and help expand public charging infrastructure in the region. VPU customers who are in the cold storage and food processing business sectors continue to explore refrigeration control upgrades to achieve energy savings. The optimization of refrigeration controls often involves system hardware and software upgrades to maximize efficiency. To help support these complex energy efficiency projects, VPU works with a third-party engineering consultant to conduct the evaluation, measurement, and verification studies to confirm the validity of the savings generated. In addition, LED Lighting retrofits continue to account for a majority of energy savings through VPU's Customized Incentive Program. Customers with 24/7 operations and large warehouses can realize significant savings by upgrading from non-LED to LED lighting technology. . . Item 11 Page 19 of 84 xvi WATER FUND Introduction The water supply in Vernon is extremely important for the well-being of the public, economic growth, and environmental sustainability. The VPU Water Division has been working for over a century to ensure that this critical infrastructure is able to provide safe, dependable, and affordable water services to more than 800 customers. They distribute around 1.8 billion gallons of water annually. To accomplish its mission, the VPU Water Division consists of professionals who are dedicated to maintaining the water infrastructure, responding to any issues as soon as possible, and proactively planning for the future needs of the water system. Their knowledge and commitment guarantee that the water delivered meets the highest quality and service standards. By prioritizing reliability, sustainability, and affordability, the VPU Water Division team ensures that the Water Fund continues to succeed financially and operationally. Reliability With a network of 7 Wells, 2 booster plants, and reservoirs with a total capacity of 16.6 million gallons spanning the City, as well as a direct connection to the Metropolitan Water District, the VPU Water Division ensures a consistent supply of high-quality water even during periods of peak demand or drought. This commitment to reliability is further bolstered by a comprehensive water quality monitoring program that meets rigorous Federal and State regulations. The VPU Water Division pursues innovative technologies and best practices to ensure high-quality and reliable water service. This includes a bidirectional flushing program, valve exercising programs, prompt repair of leaks to save water loss, and a state-of-the-art real-time UV spectrometer water quality analyzer. . . Item 11 Page 20 of 84 xvii Capital Improvement Plan The Water Fund continues to implement major capital investments that began in FY 2019-20. The VPU Water Division has made significant capital investments in such projects as the construction of the first new groundwater well since 1989, Well 22; well and reservoir rehabilitation; and an entirely new Supervisory Control and Data Acquisition (SCADA) system along with electrical and fiber service upgrades to ensure the continued reliability of the Water system. This eight-year capital investment program represents a total investment of almost $30 million. . . Item 11 Page 21 of 84 xviii GAS FUND Introduction The VPU Gas Division is a reliable and cost-effective natural gas provider for businesses and residents in Vernon. They operate a state-of-the-art natural gas distribution and transmission system that serves over 125 customers. The Division is committed to providing its customers safe, reliable, and affordable natural gas service and has been nationally recognized for its strong safety record. The VPU Gas Division is staffed with highly qualified technicians who are available 24/7 to respond to emergencies. In addition to providing natural gas service, the VPU Gas Division offers various energy efficiency rebate programs and incentives to help customers reduce their GHG emissions. The services offered by the VPU Gas Division include: Natural Gas Service Provides natural gas services to residential, commercial, and industrial customers. Energy Efficiency Programs Offers a variety of energy efficiency programs and incentives to help customers reduce their GHG emissions. Leak Detection and Repair A team of experienced technicians who can detect and repair leaks immediately to ensure the continued reliability and safety of customers. Awards The VPU Gas Division has received the 2021 Safety Management Excellence Award and the Safety Award for calendar years 2018, 2020, 2021, and 2022 from the American Public Gas Association. Reliability As the only public utility in the state with a high-pressure natural gas transmission pipeline and one of the largest public gas systems by volume in the United States, the VPU Gas Division performs an annual assessment of its Integrity Management Plan and routinely surveys its gas system for compliance with regulatory requirements. Further, the VPU Gas Division annually conducts joint training with the Vernon . . Item 11 Page 22 of 84 xix Police Department and the Los Angeles County Fire Department to provide a continued overall understanding of the City’s natural gas system. Capital Projects During FY 2022-23, the VPU Gas Division updated its remote-access SCADA system by installing electronic recording devices (ERX) in each regulator station. This new system allows for live monitoring of transmission and distribution pressures, as well as monitoring of temperatures and alarms. Additionally, the high-pressure transmission pipeline system at the Seville lateral underwent a guided-wave ultrasonic test, and some gouges were discovered. The system was swiftly repaired, and the lateral was placed back online. Lastly, the VPU Gas Division conducted a systemwide inspection of all transmission and distribution valves. This critical project focused on maintenance to prevent valve leaks, as required by federal regulations. Gas Energy Efficiency Rebate The VPU Gas Division is dedicated to supporting its commercial and industrial gas customers in their efforts to decrease energy consumption and GHG emissions. To achieve this, the division provides an Energy Efficiency Rebate Program, which assists customers in saving money, improving energy efficiency, and reducing GHG emissions. The rebate covers a wide range of projects, such as upgrading to high- efficiency equipment, implementing energy-saving retrofits, and replacing customer fleets for lower or zero-emission vehicles and forklifts. . . Item 11 Page 23 of 84 xx FIBER OPTICS FUND Introduction The VPU Fiber Optics Division offers high-speed fiber optic internet service to residents and businesses in Vernon. The service is up to 5 times faster than AT&T and has a dedicated service line for businesses and residents. Fiber Internet includes 24-hour customer care technical support, consistent bi-directional high-speed connection, 99.9% up-time, and Dark Fiber connections for lease. Vernon customers have access to a high-quality and reliable internet service, which is constantly monitored in real-time to ensure a stable connection. The dedicated support team is available 24/7 to swiftly resolve any issues that may arise. Customers are assured reliable connectivity and significantly faster internet speeds and bandwidth due to fiber optic cables. Significant benefits of the VPU Fiber Optics Division services include: Smart Grid Infrastructure Support Fiber optic networks support real-time data collection, fault detection, and remote control of grid components, improving grid stability and reducing power outages. Diversification of Revenue Streams and Community Development Fiber-based internet services generate additional revenue for VPU and promote economic growth by attracting businesses to the City. Community Development and Economic Growth Access to high-speed internet is essential for economic development and attracting businesses to the City. The VPU Fiber Optic Division is vital in bridging the digital divide by providing fiber-based internet services to underserved areas. . . Item 11 Page 24 of 84 xxi Capital Projects In 2023, the VPU Fiber Optics Division underwent a major upgrade of the entire fiber equipment system. This upgrade included the installation of cutting-edge technology and advanced equipment, resulting in faster internet speeds and higher reliability for customers. The upgraded system has significantly improved the data transmission rate, reducing latency and increasing bandwidth. The fiber system upgrade was a strategic move by the VPU Fiber Optics Division to meet the growing demand for high-speed internet services. VPU’s fiber upgrade significantly increased capacity, with the system now capable of handling 100 GB and offering customers up to 1GB fiber circuit service. With this upgrade, the fiber system is now capable of providing seamless and uninterrupted internet services to more customers, even during peak usage hours. Moreover, the upgraded fiber system not only meets the current needs of customers but also secures the future growth of the fiber network. The new equipment and technology installed during the upgrade are designed to extend the life expectancy of the system and support future expansion and upgrades. The VPU Fiber Optics Division can confidently meet the increasing demand for high-speed internet services, ensuring the continued reliability and overall satisfaction of our customers. . . Item 11 Page 25 of 84 xxii This page intentionally left blank. . . Item 11 Page 26 of 84 200 E. Sandpointe Avenue, Suite 600 Santa Ana, California 92707 INDEPENDENT AUDITORS’ REPORT To the Honorable Mayor and Members of the City Council of the City of Vernon Vernon, California Report on the Audit of the Financial Statements Opinion We have audited the accompanying financial statements of the Electric Enterprise Fund (the “Electric Fund”) of the City of Vernon, California (the “City”), as of and for the year ended June 30, 2023, and the related notes to the financial statements as listed in the table of contents. In our opinion, the accompanying financial statements referred to above present fairly, in all material respects, the financial position of the Electric Fund as of June 30, 2023, and the change in financial position, and cash flows for the year then ended, in accordance with accounting principles generally accepted in the United States of America. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America (“GAAS”), and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States (“Government Auditing Standards”). Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to out audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Emphasis of Matter As discussed in Note 1 to the financial statements, the financial statements present only the Electric Fund and do not purport to, and do not, present fairly the financial position of the City as of June 30, 2023, the changes in its financial position, or its cash flows for the year then, ended in accordance with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter. Responsibility of Management for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. . . Item 11 Page 27 of 84 To the Honorable Mayor and Members of the City Council of the City of Vernon Vernon, California Page 2 2 Auditors’ Responsibility for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with GAAS and Government Auditing Standards, we:  exercise professional judgment and maintain professional skepticism throughout the audit.  identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.  obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed.  evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit. Required Supplementary Information Accounting principles generally accepted in the United States of America require that the Management Discussion and Analysis, the Schedule of the Proportionate Share of the Net Pension Liability and Related Ratios, the Schedule of Contributions – Pensions, the Schedule of the Proportionate Share of the Net Other Postemployment Benefits Liability and Related Ratios, and the Schedule of the Contributions – Other Postemployment Benefits be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by Government Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the Required Supplementary Information in accordance with GAAS, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. . . Item 11 Page 28 of 84 To the Honorable Mayor and Members of the City Council of the City of Vernon Vernon, California Page 3 3 Other Information Management is responsible for the other information included in this annual report. The other information comprises the Introductory Section but does not include the basic financial statements and our auditors’ report thereon. Our opinion on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated February 8, 2024 on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance. Santa Ana, California February 8, 2024 . . Item 11 Page 29 of 84 4 This page intentionally left blank. . . Item 11 Page 30 of 84 City of Vernon, California Electric Fund Management’s Discussion and Analysis Year ended June 30, 2023 5 The management of the Electric Fund of the City of Vernon (the “City”) offers the following overview and analysis of the basic financial statements of the Electric Fund for the fiscal year ending June 30, 2023. Management encourages readers to utilize information in the Management’s Discussion and Analysis (“MD&A”) in conjunction with the accompanying basic financial statements. OVERVIEW OF BASIC FINANCIAL STATEMENTS The MD&A is intended to serve as an introduction to the Electric Fund’s basic financial statements. Included as part of the financial statements are three separate statements. The statement of net position presents information on the Electric Fund’s total assets and deferred outflows of resources and total liabilities and deferred inflows of resources, with the difference between the two reported as net position. The statement of revenues, expenses, and changes in net position presents information showing how the Electric Fund's net position changed during the most recent fiscal year. Financial results are recorded using the accrual basis of accounting. Under this method, all changes in net position are reported as soon as the underlying events occur, regardless of the timing of cash flows. Thus, revenues and expenses reported in this statement for some items may affect cash flows in a future fiscal period (examples include billed but uncollected revenues and employee earned but unused vacation leave). The statement of cash flows reports cash receipts, cash payments, and net changes in cash and cash equivalents from operations, noncapital financing, capital and related financing, and investing activities. The notes to the financial statements provide essential additional information. . . Item 11 Page 31 of 84 City of Vernon, California Electric Fund Management’s Discussion and Analysis (Continued) Year ended June 30, 2023 6 FINANCIAL HIGHLIGHTS Net Position The table below summarizes the Electric Fund’s net position as of the current fiscal year ended June 30, 2023, and the prior fiscal year ended June 30, 2022. The current year’s summary details can be found on pages 18-19 of this report. City of Vernon Electric Fund Net Position June 30, 2023 and 2022 2023 2022 $ Variance Current assets $ 149,440,792 $ 160,376,143 $ (10,935,351) Restricted and other assets 71,283,688 68,301,074 2,982,614 Capital assets 426,700,767 425,717,312 983,455 Total assets 647,425,247 654,394,529 (6,969,282) 14,386,236 6,447,852 7,938,384 Current liabilities 76,783,773 75,002,152 1,781,621 Long term liabilities 371,938,172 413,344,641 (41,406,469) Total liabilities 448,721,945 488,346,793 (39,624,848) 2,609,197 9,028,638 (6,419,441) Net investment in capital assets 167,320,726 145,563,396 21,757,330 Restricted for debt service 33,955,595 32,836,544 1,119,051 Restricted for AB1890 2,933,017 - 2,933,017 Unrestricted (deficit) 6,271,003 (14,932,990) 21,203,993 Total net position $ 210,480,341 $ 163,466,950 $ 47,013,391 Deferred Inflows of Resources Assets Deferred Outflows of Resources Liabilities Net Position The category of the Electric Fund’s net position with the largest balance totaling $167.3 million represents resources that are invested in capital assets, net of related debt. The second category, restricted for debt services totaling $33.9 million, represents resources that are subject to external restrictions on how they can be used, in this case, bond debt. The remaining category of the Electric Fund’s net position, totaling $9.2 million, includes $2.9 million for the Electric Fund’s Public Benefits program under AB 1890. . . Item 11 Page 32 of 84 City of Vernon, California Electric Fund Management’s Discussion and Analysis (Continued) Year ended June 30, 2023 7 FINANCIAL HIGHLIGHTS (Continued) Activities, Net Position  Current assets decreased by $10.9 million from the prior year while restricted and other assets increased by $2.9 million from the prior year.  Capital assets increased by approximately $1 million from the prior year mainly due to the continued capital investment in Electric Fund’s utility infrastructure. Current liabilities increased by approximately $1.8 million from the prior year, while long-term liabilities decreased by $41.4 million from the prior year, mainly due to lower debt service requirements of $59.2 million offset by higher net pension liability expenses of $17.1 million.  The total net position of the Electric Fund increased by $47 million from the prior year primarily due to a $21.8 million increase in net investment in capital assets, an increase of $1.1 million in debt service restrictions, an increase in funds restricted for AB1890 (Public Benefits program) of $2.9 million, and an increase in the unrestricted (deficit) of $21.2 million. . . Item 11 Page 33 of 84 City of Vernon, California Electric Fund Management’s Discussion and Analysis (Continued) Year ended June 30, 2023 8 FINANCIAL HIGHLIGHTS (Continued) Changes in Net Position The table below summarizes the Electric Fund’s changes in net position over the current and prior fiscal years. The details of the current year’s changes in net position can be found on page 21 of this report. City of Vernon Electric Fund Changes in Net Position June 30, 2023 and 2022 2023 2022 $ Variance Charges for services $ 233,135,904 $ 208,539,519 $ 24,596,385 Total operating revenue 233,135,904 208,539,519 24,596,385 Cost of sales 151,898,323 144,582,543 7,315,780 Depreciation and amortization 22,734,810 16,510,921 6,223,889 Total operating expenses 174,633,133 161,093,464 13,539,669 Operating income 58,502,771 47,446,055 11,056,716 Intergovernmental - 665,887 (665,887) Investment income 4,198,611 269,257 3,929,354 Net decrease in fair value of investments (1,626) (8,231) 6,605 Interest expense (14,190,777) (13,599,589) (591,188) Transfer Out (491,542) - (491,542) Gain/(loss) on disposition of assets (1,004,046) (1,900,009) 895,963 Net nonoperating revenues (expenses) (11,489,380) (14,572,685) 3,083,305 47,013,391 32,873,370 14,140,021 163,466,950 130,593,580 32,873,370 $ 210,480,341 $ 163,466,950 $ 47,013,391 Change in net position Net position - beginning of year Net position - end of year Operating Revenues Operating Expenses Nonoperating revenues (expenses) The Electric Fund’s operating income of $58.5 million, less nonoperating revenues (expenses) of $11.5 million, resulted in an increase in net position of $47 million during the current year. The Electric Fund’s $47 million increase in the change in net position is primarily due to a higher billed amount to customers, management of operating expenses, and higher than expected investment income for FY 2022-23. . . Item 11 Page 34 of 84 City of Vernon, California Electric Fund Management’s Discussion and Analysis (Continued) Year ended June 30, 2023 9 CAPITAL ASSET AND DEBT ADMINISTRATION Capital Assets The Electric Fund’s investment in capital assets as of June 30, 2023, amounted to $426.7 million (net of accumulated depreciation). This investment in capital assets includes land, intangible assets, construction in progress, building, utility system improvements, and machinery and equipment. Additional information on the Electric Fund's capital assets can be found in Note 5 of this report. Outstanding Debt As of June 30, 2023, the following debt remains outstanding:  $36,870,000 City of Vernon Electric System Revenue Bonds, 2008 Taxable Series A  $5,340,000 City of Vernon Electric System Revenue Bonds, 2012 Taxable Series B  $89,180,000 City of Vernon Electric System Revenue Bonds, 2015 Taxable Series A  $19,305,000 City of Vernon Electric System Revenue Bonds, 2020 Series A  $153,435,000 City of Vernon Electric System Revenue Bonds, 2021 Taxable Series A  $52,070,000 City of Vernon Electric System Revenue Bonds, 2022 Taxable Series A The City of Vernon Electric System Revenue Bonds, 2008 Taxable Series A were issued to provide funds to (i) finance the cost of certain capital improvements to the City’s Electric System, (ii) fund a deposit to the Debt Service Reserve Fund, and (iii) to pay costs of issuance of the 2008 Bonds. The City of Vernon Electric System Revenue Bonds, 2012 Taxable Series B were issued to provide funds to (i) refund the $28,680,000 aggregate principal amount of 2009 Bonds maturing on August 1, 2012, (ii) to pay a portion of the Costs of the 2012 Project, and (iii) to pay costs of issuance of the 2012 Taxable Series B Bonds. The City of Vernon Electric System Revenue Bonds, 2015 Taxable Series A were issued to provide funds to (i) refund a portion of the Outstanding Electric System Revenue Bonds, 2009 Series A; (ii) finance the costs of certain capital improvements to the City’s Electric System by reimbursing the Electric System for the prior payment of such costs from the Light and Power Fund; (iii) fund a deposit to the Debt Service Reserve Fund; and (iv) pay costs of issuance of the 2015 Bonds. The City of Vernon Electric System Revenue Bonds, 2020 Series A were issued to provide funds to (i) finance the acquisition and construction of certain capital improvements to the Electric System of the City, (ii) to refund all of the City’s outstanding Electric System Revenue Bonds, 2009 Series A, and (iii) to pay costs of issuance of the 2020 Bonds. The City of Vernon Electric System Revenue Bonds, 2021 Series A were issued to provide funds: (i) to pay the costs of the acquisition by the City of Vernon of a 134-megawatt natural gas-fired generating facility located within the city limits on land owned by the City, together with certain related electrical interconnection facilities and other assets, property, and contractual rights, (ii) to fund a deposit to the Debt Service Reserve Fund in satisfaction of the Debt Service Reserve Requirement, and (iii) to pay costs of issuance of the 2021 Bonds. The City of Vernon Electric System Revenue Bonds, 2022 Series A were issued to (i) refund and defease all of the City’s outstanding Electric System Revenue Bonds, 2012 Series A and a portion of the City’s outstanding Electric System Revenue Bonds, 2012 Taxable Series B and (ii) to pay costs of issuance of the 2022 Bonds. . . Item 11 Page 35 of 84 City of Vernon, California Electric Fund Management’s Discussion and Analysis (Continued) Year ended June 30, 2023 10 As of June 30, 2023, the ratings on all Electric System Revenue Bonds of the City were BBB+/Stable rating by S&P and Baa1/Stable rating by Moody’s. Additional information on the Electric Fund's long-term debt can be found in Note 6 on pages 38-42 of this report. ECONOMIC FACTORS AND NEW YEAR’S BUDGET AND RATES These factors were considered in preparing the Electric Fund’s FY 2023-24 operating and capital budgets.  VPU is committed to providing dependable, high-quality electric, water, natural gas, and fiber services at the lowest competitive rates and the highest standards for reliability.  VPU continues to respond to inflation and supply chain issues, including energy, natural gas, materials and supplies, and construction costs to maintain the generation, transmission, and distribution infrastructure to continue to provide exceptionally reliable service.  Manage and control operating and maintenance expenses, implement the recommendations of the Electric Cost of Service Analysis and Rate Design study and the 2023 Integrated Resource Plan. REQUESTS FOR INFORMATION This report is designed to provide an overview of the Electric Fund's FY 2022-23 results. Questions concerning the fund’s financial results can be addressed to the Finance Department, City of Vernon, 4305 Santa Fe Avenue, Vernon, California, 90058. . . Item 11 Page 36 of 84 FINANCIAL STATEMENTS 11 . . Item 11 Page 37 of 84 ASSETS Current assets: Cash and investments 117,511,564$ Accounts receivable, net 13,592,491 Interest receivable 367,547 Accrued unbilled revenue 17,231,152 Due from other government 8,829 Prepaid items 159,007 Inventory 570,202 Total current assets 149,440,792 Noncurrent assets: Restricted cash and investments 34,278,926 Advances to other funds 33,926,562 Prepayment to Southern California Public Power Authority 977,070 Deposits 2,101,130 Capital assets: Capital assets, not being depreciated 63,837,963 Capital assets, being depreciated, net 362,862,804 Total capital assets 426,700,767 Total noncurrent assets 497,984,455 Total assets 647,425,247 DEFERRED OUTFLOW OF RESOURCES Pension related 11,703,498 Other postemployment benefits related 951,376 Deferred charges on refunding 1,731,362 Total deferred outflow of resources 14,386,236$ (Continued) Electric Enterprise Fund of the City of Vernon June 30, 2023 Statement of Net Position See accompanying Notes to the Basic Financial Statements. 12 . . Item 11 Page 38 of 84 LIABILITIES Current liabilities: Accounts payable 14,053,698$ Accrued wages and benefits 369,773 Accrued interest payable 6,826,980 Due to other funds 2,953,113 Customer deposits 410,497 Compensated absences, due within one year 334,712 Bonds payable, due within one year 51,835,000 Total current liabilities 76,783,773 Noncurrent liabilities: Compensated absences, due in more than one year 669,422 Bonds payable, due in more than one year 338,642,538 Net pension liability 29,555,620 Net other postemployment benefits liability 3,070,592 Total noncurrent liabilities 371,938,172 Total liabilities 448,721,945 DEFERRED INFLOWS OF RESOURCES Pension related 1,479,229 Other postemployment benefits related 1,129,968 Total deferred inflows of resources 2,609,197 NET POSITION Net investment in capital assets 167,320,725 Restricted for: Debt service 33,955,595 Assembly Bill 1890 2,933,017 Unrestricted 6,271,004 Total net position 210,480,341$ (Concluded) Electric Enterprise Fund of the City of Vernon Statement of Net Position (Continued) June 30, 2023 See accompanying Notes to the Basic Financial Statements. 13 . . Item 11 Page 39 of 84 This page intentionally left blank. 14 . . Item 11 Page 40 of 84 OPERATING REVENUES: Charges for services 233,135,904$ Total operating revenues 233,135,904 OPERATING EXPENSES: Cost of sales 151,898,323 Depreciation expense 22,734,810 Total operating expenses 174,633,133 OPERATING INCOME 58,502,771 NONOPERATING REVENUES (EXPENSES): Investment income 4,198,611 Net decrease in fair value of investments (1,626) Interest expense (14,190,777) Transfers out (491,542) Gain (loss) on disposal of assets (1,004,046) Total nonoperating revenues (expenses)(11,489,380) CHANGE IN NET POSITION 47,013,391 NET POSITION: Beginning of year 163,466,950 End of year 210,480,341$ Electric Enterprise Fund of the City of Vernon Statement of Revenues, Expenses, and Change in Net Position For the Year Ended June 30, 2023 See accompanying Notes to the Basic Financial Statements. 15 . . Item 11 Page 41 of 84 CASH FLOWS FROM OPERATING ACTIVITIES: Cash receipts from customers and users 230,220,383$ Cash paid to suppliers for goods and services (137,074,541) Cash paid to employees for services (13,451,748) Net cash provided by operating activities 79,694,094 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Transfer to the City (491,542) Receipt from other funds 61,570 Payment to other funds (6,858,636) Net cash (used in) noncapital financing activities (7,288,608) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Acquisition of capital assets (24,759,717) Proceed from sale of capital assets 37,406 Principal paid on long-term debt (50,110,000) Interest paid on long-term debt (19,480,488) Net cash (used in) capital and related financing activities (94,312,799) CASH FLOWS FROM INVESTING ACTIVITIES: Interest received 3,914,187 Net cash provided by investing activities 3,914,187 Net (decrease) in cash and cash equivalents (17,993,126) CASH AND CASH EQUIVALENTS: Beginning of year 169,783,616 End of year 151,790,490$ CASH AND CASH EQUIVALENTS: Cash and investment 117,511,564$ Restricted cash and investment 34,278,926 Total cash and cash equivalents 151,790,490$ (Continued) Electric Enterprise Fund of the City of Vernon Statement of Cash Flows For the Year Ended June 30, 2023 See accompanying Notes to the Basic Financial Statements. 16 . . Item 11 Page 42 of 84 OPERATING INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES: Operating income 58,502,771$ Adjustments to reconcile operating income to net cash provided by operating activities: Depreciation 22,734,810 Change in assets and liabilities: (Increase) decrease in accounts receivable (1,196,444) (Increase) decrease in accrued unbilled revenue (819,370) (Increase) decrease in inventories and prepaid items (56,968) (Increase) decrease in customer deposits (899,707) (Increase) decrease in deferred outflows of resources related to pension (7,687,121) (Increase) decrease in deferred outflows of resources related to OPEB (453,246) Increase (decrease) in accounts payable (1,774,693) Increase (decrease) in accrued wages and benefits 35,859 Increase (decrease) in deposits payable (14,929) Increase (decrease) in compensated absences (104,689) Increase (decrease) in net pension liabilities 17,094,440 Increase (decrease) in OPEB liabilities 752,822 Increase (decrease) in deferred inflows of resources related to pension (6,362,346) Increase (decrease) in deferred inflows of resources related to OPEB (57,095) Total adjustment 21,191,323 Net cash provided by operating activities 79,694,094$ (Concluded) Statement of Cash Flows (Continued) Electric Enterprise Fund of the City of Vernon For the Year Ended June 30, 2023 See accompanying Notes to the Basic Financial Statements. 17 . . Item 11 Page 43 of 84 This page intentionally left blank. 18 . . Item 11 Page 44 of 84 19 NOTES TO THE BASIC FINANCIAL STATEMENTS . . Item 11 Page 45 of 84 20 This page intentionally left blank. . . Item 11 Page 46 of 84 Electric Enterprise Fund Of the City of Vernon Notes to the Basic Financial Statements For the Year Ended June 30, 2023 21 Page Note 1 – Summary of Significant Accounting Policies ....................................................................................... 23 A. Basis of Accounting and Measurement Focus ..................................................................................... 23 B. Pooled Cash ......................................................................................................................................... 23 C. Cash, Cash Equivalents and Investments ............................................................................................. 23 D. Fair Value Measurement ...................................................................................................................... 24 E. Interfund Transactions ......................................................................................................................... 24 F. Accounts Receivable ............................................................................................................................ 24 G. Prepaid Items ....................................................................................................................................... 24 H. Capital Assets ....................................................................................................................................... 24 I. Deferred Outflows and Inflows of Resources ...................................................................................... 25 J. Compensated Absences ........................................................................................................................ 25 K. Long-Term Debt .................................................................................................................................. 25 L. Pensions ............................................................................................................................................... 25 M. Postemployment Benefits Other than Pensions (OPEB)...................................................................... 26 N. Net Position .......................................................................................................................................... 26 O. Use of Estimates................................................................................................................................... 27 Note 2 – Cash and Cash Equivalents ................................................................................................................... 27 A. Equity in the Cash Pool of the City of Vernon .................................................................................... 27 B. Investments .......................................................................................................................................... 28 C. Local Agency Investment Fund (“LAIF”) ........................................................................................... 28 D. Fair Value Measurement ...................................................................................................................... 28 E. Risk Disclosures ................................................................................................................................... 29 Note 3 – Accounts Receivable ............................................................................................................................... 30 Note 4 – Internal Transactions ............................................................................................................................. 30 A. Due From/To Other City Funds ........................................................................................................... 30 B. Advances From/To Other City Funds .................................................................................................. 30 Note 5 – Capital Assets .......................................................................................................................................... 31 Note 6 – Long-Term Debt ..................................................................................................................................... 32 Note 7 – Risk Management ................................................................................................................................... 36 Note 8 – Pension Plan ............................................................................................................................................ 37 A. General Information about the Pension Plans ...................................................................................... 37 B. Net Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions ........................................................................... 39 Note 9 – Other Postemployment Benefits (“OPEB”) ......................................................................................... 43 A. General Information about the OPEB Plan .......................................................................................... 43 B. Net OPEB Liabilities, OPEB Expenses, and Deferred Outflows/Inflows of Resources Related to OPEB ............................................................................... 43 Note 10 – Southern California Public Power Authority .................................................................................... 46 A. Take or Pay Contract ............................................................................................................................ 46 B. Power Purchase Commitments ............................................................................................................ 47. . Item 11 Page 47 of 84 22 This page intentionally left blank . . Item 11 Page 48 of 84 Electric Enterprise Fund Of the City of Vernon Notes to the Basic Financial Statements For the Year Ended June 30, 2023 23 Note 1 – Summary of Significant Accounting Policies The accompanying financial statements present only the Electric Enterprise Fund (“Electric Fund”) of the City of Vernon, California (“the City”), and do not present fairly the financial position and results of the operations of the City. The Electric Fund accounts for the independent operations and the maintenance of the City’s electric utility. The Electric Fund is administered as an independent fiscal and accounting entity with a self-balancing set of accounts recording resources, related liabilities, obligations, reserves, and equities, segregated for the purpose of carrying out specific activities or attaining certain objectives in accordance with special regulations, restrictions, or limitations. For additional information regarding the City of Vernon, refer to the City’s annual financial report. The financial statements of the Electric Fund have been prepared in conformity with the U.S. generally accepted accounting principles (“U.S. GAAP”). The Governmental Accounting Standards Board (“GASB”) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The Electric Fund’s significant accounting policies are described below. A. Basis of Accounting and Measurement Focus The Electric Fund’s financial statements are reported using the “economic resources” measurement focus and the accrual basis of accounting. Accordingly, all assets and liabilities (whether current or noncurrent) are included on the Statement of Net Position. The Statement of Revenues, Expenses and Changes in Net Position presents increases (revenues) and decreases (expenses) in total net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred. The Electric Fund distinguishes operating revenues and expenses from nonoperating items. Operating revenues, such as charges for services, result from exchange transactions associated with the sale of electricity. Exchange transactions are those in which each party receives and gives up essentially equal values. Nonoperating revenues, such as subsidies and investment earnings, result from nonexchange transactions or ancillary activities. Operating expenses include the cost of sales and services, administrative expenses and depreciation on capital assets. All expenses not meeting this definition are reported as nonoperating expenses. B. Pooled Cash Part of the Electric Fund’s operating cash balance is pooled with other City funds for deposit purposes. The share of each fund in the pooled cash account is recorded in each of the fund’s book of accounts, and interest income is apportioned to the participating funds based on the relationship of their average monthly balances to the total of the pooled cash. C. Cash, Cash Equivalents and Investments For purposes of the statement of cash flows, the Electric Fund considers all highly liquid investments (including restricted cash and investments) with an original maturity of three months or less when purchased to be cash equivalents. Investment transactions are recorded on the settlement date. Investments in nonparticipating interest- earning investment contracts are reported at cost and all other investments are reported at fair value. . . Item 11 Page 49 of 84 Electric Enterprise Fund Of the City of Vernon Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023 24 Note 1 – Summary of Significant Accounting Policies (Continued) D. Fair Value Measurement U.S. GAAP defines fair value, establishes a framework for measuring fair value and establishes disclosure about fair value measurement. Investments, unless otherwise specified at fair value in the financial statements, are categorized based upon the level of judgment associated with the inputs used to measure their fair value. Levels of inputs are as follows:  Level 1 – Inputs are unadjusted, quoted prices for identical assets or liabilities in active markets at the measurement date.  Level 2 – Inputs, other than quoted prices included in Level 1, that are observable for the assets or liabilities through corroboration with market data at the measurement date.  Level 3 – Unobservable inputs that reflect management’s best estimate of what market participants would use in pricing the assets or liabilities at the measurement date. E. Interfund Transactions Outstanding short-term borrowing between funds are reported as “due from/to other funds City funds”. Long-term interfund loans are classified as “advances to/from other City funds” on the statement of net position. F. Accounts Receivable Accounts receivables are shown net of an allowance for uncollectible accounts. Allowances for uncollectible accounts were $1,135,631 as of June 30, 2023. Utility customers are billed monthly. The estimated value of services provided, but unbilled at year-end has been included in the accompanying statement of net position. G. Prepaid Items Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both the government-wide and fund financial statements by using purchase method. The Electric Fund made a prepayment to Southern California Public Power Authority (“SCPPA”) for the Electric Fund’s share of SCPPA’s payoff of the Hoover Center and Air Slots debt. This prepaid amount is amortized over the life of the debt based on the annual debt service obligations. See Note 10 for further information regarding SCPPA H. Capital Assets Capital assets are recorded at cost where historical records are available and at an estimated original cost where no historical records exist. Donated capital assets are valued at their acquisition value. Capital assets include intangible assets with indefinite lives and public domain (infrastructure) general capital assets consisting of certain improvements including roads and bridges, sidewalks, curbs and gutters, and traffic light systems. The capitalization threshold for all capital assets is $5,000. Capital assets used in operations are depreciated using the straight-line method over their estimated useful lives in the government-wide and proprietary funds statements. . . Item 11 Page 50 of 84 Electric Enterprise Fund Of the City of Vernon Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023 25 Note 1 – Summary of Significant Accounting Policies (Continued) H. Capital Assets (Continued) Capital assets used in operations are depreciated over their estimated useful lives using the straight-line method. Utility Infrastructure and Buildings 25 to 50 Years Improvements 10 to 20 Years Machinery and Equipment 3 to 35 Years Maintenance and repairs are charged to operations when incurred. Betterments and major improvements, which significantly increase values, change capacities or extend useful lives, are capitalized. Upon sale or retirement of capital assets, the cost and related accumulated depreciation are removed from the respective accounts and any resulting gain or loss is included in the statement of revenues, expenses, and changes in net position. I. Deferred Outflows and Inflows of Resources The statement of net position reports separate sections for deferred outflows of resources and deferred inflows of resources, when applicable. Deferred Outflows of Resources represents consumption of net assets that applies to future periods. Deferred Inflows of Resources represents acquisition of net assets that applies to future periods. J. Compensated Absences Accumulated vacation is accrued when incurred. Upon termination of employment, the Electric Fund will pay the employee all accumulated vacation leave at 100% of the employee’s base hourly rate. K. Long-Term Debt Long-term debt and other long-term obligations are reported as liabilities in the appropriate activities. Bonds payable are reported net of the applicable bond premium or discount. Debt issuance costs except for any portion related to prepaid insurance were recognized as expense in the period incurred. Premium or discount not considered as part of the reacquisition price was amortized over the life of the bond. L. Pensions For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the plans and additions to/deductions from the plans’ fiduciary net position have been determined on the same basis as they are reported by the plans. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with benefit terms. Investments are reported at fair value. The following timeframes are used for pension reporting: Valuation Date June 30, 2021 Measurement Date June 30, 2022 Measurement Period July 1, 2021 to June 30, 2022 . . Item 11 Page 51 of 84 Electric Enterprise Fund Of the City of Vernon Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023 26 Note 1 – Summary of Significant Accounting Policies (Continued) L. Pensions (Continued) Gains and losses related to changes in total pension liability and fiduciary net position are recognized in pension expense systematically over time. The first amortized amounts are recognized in pension expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to pensions and are to be recognized in future pension expense. The amortization period differs depending on the source of the gain or loss. The difference between projected and actual earnings is amortized straight-line over 5 years. All other amounts are amortized straight-line over the average expected remaining service lives of all members that are provided with benefits (active, inactive, and retired) as of the beginning of the measurement period. M. Postemployment Benefits Other than Pensions (“OPEB”) For the purpose of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the City’s OPEB Plan and additions to/deductions from the OPEB Plan’s fiduciary net position have been determined on the same basis as they are reported by the Plan. For this purpose, the OPEB Plan recognizes benefit payments when due and payable in accordance with the benefit terms. Investments are reported at fair value, except for money market investments, which are reported at amortized cost. The following timeframes are reported OPEB reporting: Valuation Date June 30, 2022 Measurement Date June 30, 2022 Measurement Period July 1, 2021 to June 30, 2022 Gains and losses related to changes in total OPEB liability and fiduciary net position are recognized in OPEB expense systematically over time. The first amortized amounts are recognized in OPEB expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to OPEB and are to be recognized in future OPEB expense. The amortization period differs depending on the sources of gain or loss. The difference between projected and actual earnings is amortized on a straight-line basis over 5 years. All other amounts are amortized on a straight-line basis over the average expected remaining service lives of all members that are provided with benefits (active, inactive, and retired) at the beginning of the measurement period. N. Net Position The Electric Fund financial statements utilize a net position presentation. Net position is classified as follows. Net Investment in Capital Assets – This component of net position consists of capital assets, net of accumulated depreciation, reduced by the outstanding balances of retention payable and debt that are attributable to the acquisition, construction, or improvement of those assets, and related deferred outflows and inflows of resources, net of unspent debt proceeds. . . Item 11 Page 52 of 84 Electric Enterprise Fund Of the City of Vernon Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023 27 Note 1 – Summary of Significant Accounting Policies (Continued) N. Net Position (Continued) Restricted – This component of net position consists of restricted assets reduced by liabilities and deferred inflows of resources related to those assets. Unrestricted – This component of net position is the amount of the assets, deferred outflows of resources, liabilities, and deferred inflows of resources that are not included in the determination of net investment in capital assets or the restricted component of net position. When expenses are incurred for purposes for which both restricted and unrestricted components of net position are available, the City’s policy is to apply the restricted component of net position first, then the unrestricted component of net position as needed. O. Use of Estimates The preparation of basic financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. Note 2 – Cash and Cash Equivalents The Electric Fund has the following cash and investments at June 30, 2023: Cash and investments 117,511,564$ Restricted cash and investments 34,278,926 Total cash and investments 151,790,490$ The Electric Fund cash and investments at June 30, 2023, in more detail: Equity in pooled cash 21,994,411$ Deposits with financial institutions 2,494,609 Investments 127,301,470 Total cash and investments 151,790,490$ A. Equity in the Cash Pool of the City of Vernon The Electric Fund has equity in the cash pool managed by the City. The Electric Fund is a voluntary participant in that pool and the pool is governed by and under the regulatory oversight of the Investment Policy adopted by the City Council of the City. The Electric Fund has not adopted an investment policy separate from that of the City. The amount of the Electric Fund’s cash in this pool is reported in the accompanying financial statements based upon the Electric Fund’s pro rata share of the amount calculated by the City. The balance available for withdrawal is based on the accounting records maintained by the City. . . Item 11 Page 53 of 84 Electric Enterprise Fund Of the City of Vernon Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023 28 Note 2 – Cash and Cash Equivalents (Continued) B. Investments Under the provisions of the City’s investment policy, and in accordance with California Government Code, the following investments are authorized: Maximum Maximum Maximum Percentage Investments in Minimum Authorized Investment Type Maturity Allowed* One Issuer Rating United States Treasury Bills, Bonds and Notes 5 Years None None None State and Local Agency Bonds 5 Years None None None United States Government Sponsored Agency Securities 5 Years None None None Certain Asset-Backed Securities 5 Years 20% None AA Negotiable Certificates of Deposit 5 Years 30% None None Banker's Acceptance Notes 180 days 40% 30% None Commercial Paper 270 days 25% 10% of the issuer outstanding paper A Repurchasement Agreement 1 year None None None Reverse Repurchase Agreement 92 Days 20% None None Medium-Term Notes 5 Years 30% None A Mutual Funds Incesting in Eligible Securities N/A 20% 10% AAA Money Market Mutual Funds N/A 20% 10% AAA Mortgage-Backed Pass-Through Securities 5 Years 20% None AA State Administered Pool Investment N/A None $75 Million None N/A - Not Applicable *Excluding amounts held by bond trustee that are not subject to California Government Code restrictions. C. Local Agency Investment Fund (“LAIF”) The Electric Fund is a participant in LAIF which is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. As of June 30, 2023, the Electric Fund had $636,435 invested in LAIF. The fair value of the Electric Fund’s portion in the pool is the same as the value of the pool shares and reported at amortized cost. D. Fair Value Measurement At June 30, 2023, investments are reported at fair value. The following table presents the fair value measurements of investments on a recurring basis and the levels with GASB 72 fair value hierarchy in which the fair value measurements fall at June 30, 2023: Quoted Prices in Active Significant Market for Identical Other Observable Investment Type Assets (Level 1) Inputs (Level 2) Uncategorized Total Local Agency Investment Fund -$ -$ 636,435$ 636,435$ Money Market Funds - - 62,677,283 62,677,283 US Treasury bills 29,402,775 - - 29,402,775 Negotiable Certificates of Deposit* - 496,620 - 496,620 Investment with fiscal agent: Money Market Funds - - 34,088,357 34,088,357 Total 29,402,775$ 496,620$ 63,313,718$ 127,301,470$ *Priced based on significant observable inputs. Measurement Input . . Item 11 Page 54 of 84 Electric Enterprise Fund Of the City of Vernon Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023 29 Note 2 – Cash and Cash Equivalents (Continued) E. Risk Disclosures Interest Rate Risk - As a means of limiting its exposure to fair value losses arising from rising interest rates, the City’s investment policy limits investments to a maximum maturity of five years. At June 30, 2023, the Electric Fund had the following investment maturities: 1 Year 1 Year to 3 Years to Investment Type or Less 3 Years 5 Years Total Local Agency Investment Fund 636,435$ -$ -$ 636,435$ Money Market Funds 62,677,283 - - 62,677,283 US Treasury bills 29,402,775 - - 29,402,775 Negotiable Certificates of Deposit - 247,137 249,483 496,620 Investment with fiscal agent: Money Market Funds 34,088,357 - - 34,088,357 Total 126,804,850$ 247,137$ 249,483$ 127,301,470$ Remaining Maturity (In Months) Credit Risk – Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the minimum rating required by (where applicable) the California Government Code, the City’s investment policy, or debt agreements, and the actual rating, by Standard and Poor’s and Moody’s at June 30, 2023 for each investment type: Fair Value Minimum Not Required at Legal to be Investment Type June 30, 2023 Rating AAA Other Rated Local Agency Investment Fund 636,435$ Not Rated -$ -$ 636,435$ Money market funds 62,677,283 AAA 62,677,283 - - US Treasury bills 29,402,775 N/A 29,402,775 - - Negotiable Certificates of Deposit 496,620 N/A - 496,620 - Investment with fiscal agent: Money Market Funds 34,088,357 34,088,357 - - Total 127,301,470$ 126,168,415$ 496,620$ 636,435$ N/A - Not Required Concentration of Credit Risk – The investment policy of the City contains no limitations on the amount that can be invested in any one issuer excluding a 10% limitation on commercial papers, mutual funds, and money market mutual funds and a 30% limitation on banker’ acceptances. The City’s investment policy places no limit on the amount of debt proceeds held by a bond trustee that the trustee may invest in one issuer that is governed by the provisions of debt agreements of the City, rather than the general provisions of the California Government Code or the City’s investment policy. Custodial Credit Risk – The Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover deposits or will not be able to recover collateral securities that are in the possession of a third party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty to a transaction, a government will not be able to recover the value of investment or collateral securities that are in the possession of the third party. At June 30, 2023, none of the City’s deposits or investments were exposed to custodial credit risk. . . Item 11 Page 55 of 84 Electric Enterprise Fund Of the City of Vernon Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023 30 Note 3 – Accounts Receivable The Electric Fund’s accounts receivable at June 30, 2023 are as follows: Accounts receivabe 14,728,122$ Less: allowance for uncollectible accounts (1,135,631) Total accounts receivable, net 13,592,491$ Note 4 – Interfund Transactions A. Due From/To Other City Funds At June 30, 2023, the Electric Fund had the following due to other City funds: Due to Other City Funds General Fund Water Fund Total Electric Fund 2,934,866$ 18,247$ 2,953,113$ The interfund balances resulted from borrowing of cash for temporary purposes. All balances are expected to be reimbursed within the subsequent year. B. Advances From/To Other City Funds At June 30, 2023, the Electric Fund had the following advances to other City funds: Fiber Optics Advances to Other City Funds Gas Fund Fund Total Electric Fund 29,405,104$ 4,521,458$ 33,926,562$ The advances between the other City funds and Electric Fund do not accrue interest due to the nature that the City’s operational relationship and capital projects funded by the Electric Fund that benefits both. On November 6, 2012, the City adopted Resolution No. 2012-215 extending the repayment of the advances to the other City funds from 15 months to a period of over 10 years. . . Item 11 Page 56 of 84 Electric Enterprise Fund Of the City of Vernon Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023 31 Note 5 – Capital Assets A summary of changes in the capital assets for the Electric Fund for the year ended June 30, 2023 is as follows: Balance Balance July 1, 2022 Additions Deletions Transfers June 30, 2023 Capital assets, not being depreciated: Electric Utility - Land 13,193,594$ -$ -$ -$ 13,193,594$ Electric Utility - Intangibles - Environmental Credits 4,774,583 160,763 (884,702) - 4,050,644 Electric Utility - Construction in Progress 45,453,774 1,287,047 (137,328) (9,768) 46,593,725 Total capital assets, not being depreciated 63,421,951 1,447,810 (1,022,030) (9,768) 63,837,963 Capital assets, being depreciated: Electric Utility - Production Plant 212,362,988 458,731 - - 212,821,719 Electric Utility - Transmission Plant 3,616,464 - - - 3,616,464 Electric Utility - Distribution Plant 257,051,650 22,548,011 - 9,768 279,609,429 Electric Utility - General Plant 9,754,409 305,165 (98,179) - 9,961,395 Total capital assets, being depreciated 482,785,511 23,311,907 (98,179) 9,768 506,009,007 Less accumulated depreciation for: Electric Utility - Production Plant (19,391,536) (14,276,852) - - (33,668,388) Electric Utility - Transmission Plant (2,443,189) (77,553) - - (2,520,742) Electric Utility - Distribution Plant (92,171,698) (7,999,264) - - (100,170,962) Electric Utility - General Plant (6,483,727) (381,141) 78,757 - (6,786,111) Total accumulated depreciation (120,490,150) (22,734,810) 78,757 - (143,146,203) Total capital assets, being depreciated, net 362,295,361 577,097 (19,422) 9,768 362,862,804 Total Capital assets, net 425,717,312$ 2,024,907$ (1,041,452)$ -$ 426,700,767$ The Electric Fund’s depreciation expense for the year ended June 30, 2023 was $22,734,810. . . Item 11 Page 57 of 84 Electric Enterprise Fund Of the City of Vernon Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023 32 Note 6 – Long-Term Debt A summary of changes in long-term debt for the Electric Fund for the year ended June 30, 2023 is as follows: Balance Balance Due within Due in More July 1, 2022 Additions Deletions June 30, 2023 One Year Than One Year Public Offering: Revenue Bonds: 2008 Taxable Revenue Bonds - Series A - Electric 37,895,000$ -$ (1,025,000)$ 36,870,000$ 1,120,000$ 35,750,000$ 2012 Taxable Revenue Bonds - Series B - Electric 11,505,000 - (6,165,000) 5,340,000 1,170,000 4,170,000 2015 Taxable Revenue Bonds - Series A - Electric 111,720,000 - (22,540,000) 89,180,000 23,520,000 65,660,000 2020 Taxable Revenue Bonds - Series A - Electric 19,305,000 - - 19,305,000 - 19,305,000 2021 Taxable Revenue Bonds - Series A - Electric 173,815,000 - (20,380,000) 153,435,000 21,335,000 132,100,000 2022 Taxable Revenue Bonds - Series A - Electric 52,070,000 - - 52,070,000 4,690,000 47,380,000 Total Revenue Bonds 406,310,000 - (50,110,000) 356,200,000 51,835,000 304,365,000 Unamortized Premiums/(Discounts): 2008 Taxable Revenue Bonds - Series A - Electric (2,093) - 131 (1,962) - (1,962) 2012 Taxable Revenue Bonds - Series B - Electric (69,987) - 16,797 (53,190) - (53,190) 2015 Taxable Revenue Bonds - Series A - Electric (1,096,863) - 355,739 (741,124) - (741,124) 2020 Taxable Revenue Bonds - Series A - Electric 6,615,877 - (438,622) 6,177,255 - 6,177,255 2021 Taxable Revenue Bonds - Series A - Electric 25,999,586 - (6,550,066) 19,449,520 - 19,449,520 2022 Taxable Revenue Bonds - Series A - Electric 10,179,957 - (732,918) 9,447,039 - 9,447,039 Total Unamortized Premiums/(Discounts) 41,626,477 - (7,348,939) 34,277,538 - 34,277,538 Total Public Offering 447,936,477 - (57,458,939) 390,477,538 51,835,000 338,642,538 Compensated absences 1,108,823 706,633 (811,322) 1,004,134 334,712 669,422 Total 449,045,300$ 706,633$ (58,270,261)$ 391,481,672$ 52,169,712$ 339,311,960$ $43,765,000 Electric System Revenue Bonds (2008 Taxable Series A) The bonds are special obligation bonds which are secured by an irrevocable pledge of electric revenues payable to bondholders. Under the Bond Indenture of Trust, interest and principal on the bonds are payable from Net Revenues (or Revenues less Operation and Maintenance Expenses) and/or amounts in the Light and Power Enterprise (as those terms are defined in the Indenture of Trust). The City of Vernon Electric System Revenue Bonds, 2008 Taxable Series A were issued to provide funds to (i) finance the cost of certain capital improvements to the City’s Electric System, (ii) fund a deposit to the Debt Service Reserve Fund, and (iii) to pay costs of issuance of the 2008 Bonds. The total unpaid balance as of June 30, 2023, was $36,870,000. The future annual debt service requirements for the Taxable Revenue Bonds, Series 2008A-T are as followed: Year Ending June 30, Principal Interest Total 2024 1,120,000$ 3,119,029$ 4,239,029$ 2025 1,220,000 3,018,526 4,238,526 2026 1,330,000 2,909,004 4,239,004 2027 1,450,000 2,789,603 4,239,603 2028 1,580,000 2,659,464 4,239,464 2029-2033 10,290,000 10,899,422 21,189,422 2034-2038 15,815,000 5,374,978 21,189,978 2039 4,065,000 174,592 4,239,592 Total 36,870,000$ 30,944,618$ 67,814,618$ . . Item 11 Page 58 of 84 Electric Enterprise Fund Of the City of Vernon Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023 33 Note 6 – Long-Term Debt (Continued) $35,100,000 Electric System Revenue Bonds (2012 Taxable Series B) On January 10, 2012, the City issued Electric System Revenue Bonds, 2012 Series B, in the amount of $35,100,000. During the fiscal year ended 2022, a portion of the Electric System Revenue Bonds were refunded with the issuance of the Electric System Revenue Bonds 2022 Series A. The bonds are special obligation bonds which are secured by an irrevocable pledge of electric revenues payable to bondholders. Under the Bond Indenture of Trust, interest and principal on the bonds are payable from Net Revenues (or Revenues less Operation and Maintenance Expenses) and/or amounts in the Light and Power Enterprise (as those terms are defined in the Indenture of Trust). The City of Vernon Electric System Revenue Bonds, 2012 Taxable Series B were issued to provide funds to (i) refund the $28,680,000 aggregate principal amount of 2009 Bonds maturing on August 1, 2012, (ii) to pay a portion of the Costs of the 2012 Project, and (iii) to pay costs of issuance of the 2012 Taxable Series B Bonds. The total unpaid balance as of June 30, 2023, was $5,340,000. The future annual debt service requirements for the Taxable Revenue Bonds, Series 2012B-T are as followed: Year Ending June 30, Principal Interest Total 2024 1,170,000$ 302,613$ 1,472,613$ 2025 1,305,000 225,269 1,530,269 2026 1,390,000 140,181 1,530,181 2027 1,475,000 47,938 1,522,938 Total 5,340,000$ 716,001$ 6,056,001$ $111,720,000 Electric System Revenue Bonds (2015 Taxable Series A) The bonds are special obligation bonds which are secured by an irrevocable pledge of electric revenues payable to bondholders. Under the Bond Indenture of Trust, interest and principal on the bonds are payable from Net Revenues (or Revenues less Operation and Maintenance Expenses) and/or amounts in the Light and Power Enterprise (as those terms are defined in the Indenture of Trust). The City of Vernon Electric System Revenue Bonds, 2015 Taxable Series A were issued to provide funds to (i) refund a portion of the Outstanding Electric System Revenue Bonds, 2009 Series A; (ii) finance the Costs of certain Capital Improvements to the City’s Electric System by reimbursing the Electric System for the prior payment of such Costs from the Light and Power Fund; (iii) fund a deposit to the Debt Service Reserve Fund; and (iv) pay costs of issuance of the 2015 Bonds. The total unpaid balance as of June 30, 2023, was $89,180,000. The future annual debt service requirements for the Taxable Revenue Bonds, Series 2015A-T are as followed: Year Ending June 30, Principal Interest Total 2024 23,520,000$ 3,596,938$ 27,116,938$ 2025 24,585,000 2,530,618 27,115,618 2026 25,780,000 1,341,193 27,121,193 2027 15,295,000 370,904 15,665,904 89,180,000$ 7,839,653$ 97,019,653$ . . Item 11 Page 59 of 84 Electric Enterprise Fund Of the City of Vernon Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023 34 Note 6 – Long-Term Debt (Continued) $71,990,000 Electric System Revenue Bonds (2020 Series A) The bonds are special obligation bonds which are secured by an irrevocable pledge of electric revenues payable to bondholders. Under the Bond Indenture of Trust, interest and principal on the bonds are payable from Net Revenues (or Revenues less Operation and Maintenance Expenses) and/or amounts in the Light and Power Enterprise (as those terms are defined in the Indenture of Trust). The City of Vernon Electric System Revenue Bonds, 2020 Series A were issued to provide funds to (i) to finance the acquisition and construction of certain capital improvements to the Electric System of the City, (ii) to refund all the City’s outstanding Electric System Revenue Bonds, 2009 Series A, and (iii) to pay costs of issuance of the 2020 Bonds. The total unpaid balance as of June 30, 2023, was $19,305,000. The future annual debt service requirements for the Taxable Revenue Bonds, Series 2020A-T are as followed: Year Ending June 30, Principal Interest Total 2024 -$ 965,250$ 965,250$ 2025 - 965,250 965,250 2026 - 965,250 965,250 2027 - 965,250 965,250 2028 - 965,250 965,250 2029-2033 8,450,000 3,812,250 12,262,250 2034-2038 10,855,000 1,411,125 12,266,125 Total 19,305,000$ 10,049,625$ 29,354,625$ $183,815,000 Electric System Revenue Bonds (2021 Series A) In December 2021, the City of Vernon issued 2021A Electric System Revenue Bonds in the amount of $183,815,000 (i) to pay the costs of the acquisition by the City of Vernon of a 134-megawatt natural gas-fired generating facility located within the City limits on land owned by the City, together with certain related electrical interconnection facilities and other assets, property, and contractual rights; (ii) to fund a deposit to the Debt Service Reserve Fund in satisfaction of the Debt Service Reserve Requirement; and (iii) to pay costs of issuance of the 2021 bonds. The bonds bear interest rates between 4.00%-5.00% that is payable on a semi-annual basis on April 1 and October 1, commencing April 1, 2022. The bonds are special obligation bonds which are secured by an irrevocable pledge of electric revenues payable to bondholders. The total unpaid balance as of June 30, 2023, was $153,435,000. The future annual debt service requirements for the Taxable Revenue Bonds, Series 2021A-T are as followed: Year Ending June 30, Principal Interest Total 2024 21,335,000$ 7,405,125$ 28,740,125$ 2025 22,400,000 6,325,000 28,725,000 2026 23,530,000 5,190,875 28,720,875 2027 31,255,000 3,917,875 35,172,875 2028 54,915,000 2,059,375 56,974,375 Total 153,435,000$ 24,898,250$ 178,333,250$ . . Item 11 Page 60 of 84 Electric Enterprise Fund Of the City of Vernon Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023 35 Note 6 – Long-Term Debt (Continued) $52,070,000 Electric System Revenue Bonds (2022 Series A) In December 2021, the City of Vernon issued 2022A Electric System Revenue Bonds in the amount of $52,070,000 to refund the 2012A Electric System Revenue Bonds, a portion of the 2012B Electric Revenue Bonds, and provide for the costs of issuing the bonds. Under the Bond Indenture of Trust, interest and principal on the bonds are payable from Net Revenues (or Revenues less Operation and Maintenance Expenses) and/or amounts in the Light and Power Enterprise (as those terms are defined in the Indenture of Trust). The City of Vernon Electric System Revenue Bonds, 2022 Series A were issued to (i) refund and defease all of the City’s outstanding Electric System Revenue Bonds, 2012 Series A and a portion of the City’s outstanding Electric System Revenue bonds, 2012 Taxable Series B and (ii) pay costs of issuance of the 2022 Bonds. The bonds bear interest rates between 4.00%-5.00% that is payable on a semi-annual basis beginning February 1 and August 1, commencing on August 1, 2022. The bonds are special obligation bonds which are secured by an irrevocable pledge of electric revenues payable to bondholders. The total unpaid balance as of June 30, 2023, was $52,070,000. The future annual debt service requirements for the Taxable Revenue Bonds, Series 2022A-T are as followed: Year Ending June 30, Principal Interest Total 2024 4,690,000$ 2,486,250$ 7,176,250$ 2025 4,885,000 2,246,875 7,131,875 2026 5,130,000 1,996,500 7,126,500 2027 5,405,000 1,733,125 7,138,125 2028 950,000 1,574,250 2,524,250 2029-2033 5,540,000 7,087,250 12,627,250 2034-2038 7,110,000 5,513,750 12,623,750 2039-2042 18,360,000 2,157,750 20,517,750 Total 52,070,000$ 24,795,750$ 76,865,750$ Compensated Absences The balance outstanding at June 30, 2023, was $1,004,134. Expense Stabilization Fund The Electric Fund maintains an Expense Stabilization Fund held by a Trustee in such amounts, at such times and from sources as shall be determined by the City in its sole discretion. If an Event of Default under the Indenture has occurred and is continuing, the Trustee shall transfer all moneys in this fund to debt service interest account and principal account as provided in the Indenture. Moneys on deposit in this Fund may be withdrawn by the City at any time that no Event of Default exists under the Indenture. As at June 30, 2023, this fund has a balance of $40,161,516. . . Item 11 Page 61 of 84 Electric Enterprise Fund Of the City of Vernon Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023 36 Note 6 – Long-Term Debt (Continued) Right to Accelerate Upon Default Notwithstanding anything contrary in the indenture or in the bonds, upon the occurrence of an event of default, the Trustee may, with the consent of each credit provider whose consent is required by a supplemental indenture or a credit support agreement, and shall, at the direction of the owners of a majority in principal amount of outstanding bonds (other than bonds owned by or on behalf of the City) by written notice to the City, declare the principal of the outstanding bonds and the interest thereon to be immediately due and payable, whereupon such principal and interest shall, without further action, become and be immediately due and payable. Credit Ratings As of June 30, 2023, the ratings on all Electric System Revenue Bonds is Baa1 stable by Moody’s and BBB+ stable by S&P. Note 7 – Risk Management The Electric Fund is in the City’s self-insurance program as part of its policy to self-insure certain levels of risk within certain separate lines of coverage to maximize cost savings. The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets, errors, and omissions; injuries to employees, and natural disasters. The City utilizes insurance policy(s) to transfer these risks. Each policy has either self-insured retention or deductible, which are parts of the City’s Risk Financing Program. These expenses are paid on a cash basis as they are incurred. There have been no significant settlements or deductions in insurance coverage during the past three fiscal years. Starting in Fiscal 2010, the City chose to establish Risk Financing in the General Fund, whereby assets are set aside for claim-litigation settlements associated with the abovementioned risks up to their self-insured retentions or policy deductibles. Athens Administrators Inc. is the Third-Party Administrator for the City’s workers’ compensation program and they provide basic services for general liability claims and litigation. . . Item 11 Page 62 of 84 Electric Enterprise Fund Of the City of Vernon Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023 37 Note 7 – Risk Management (Continued) The insurance limits for the fiscal year 2023 are as follows: Insurance Type Program Limits Deductible/SIR (Self-Insured Retention) 1st Excess Liability $5,000,000 $2 Million $3 Million Law Enforcement 2nd Excess Liability $5,000,000 $5,000,000 3rd Excess Liability $5,000,000 $10,000,000 4th Excess Liability $5,000,000 $15,000,000 Excess Workers Compensation $50,000,000 $1,000,000 $1.5 Million Presumptive Loss Property - Power Generating $100,000,000 Various Property - Residential $7,950,653 $2,500 Property - Municipal $59,614,930 $25,000 Commercial Propert/EQ and F L $50,000,000 - Government Crime $1,000,000 $25,000 Premise Pollution/Environmental Impairment $5,000,000 $25,000 $5,000,000 per Claim $50,000 Utility Locs. $100,000 Natural Gas Pipeline Cyber Liability $5,000,000 $100,000 Auto Physical Damage $10,000,000 $5,000 Residential Property Insurance $7,950,653 $2,500 Terrorism $100 Million Property Terrorism $0 $5 Million Terrorism Liabilty $5 Million Active Shooter Special Events $2,000,000 $1,000,000 Each Occurrence Note 8 – Pension Plan A. General Information about the Pension Plans Plan Descriptions The City contribution to the California Public Employees Retirement System (“CalPERS”), an agent multiple- employer defined benefit pension plan for miscellaneous employees and a cost-sharing multiple-employer defined benefit plan for safety employees. CalPERS acts as a common investment and administrative agent for participating public entities within the State of California. Benefit provisions and all other requirements are established by state statute and City ordinance. A full description of the pension plan regarding number of employees covered, benefit provisions, assumptions (for funding, but not accounting purposes), and membership information are listed in the June 30, 2021 Annual Actuarial Valuation Report. This report and CalPERS’ audited financial statements are publicly available reports that can be obtained at CalPERS’ website under Forms and Publications. . . Item 11 Page 63 of 84 Electric Enterprise Fund Of the City of Vernon Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023 38 Note 8 – Pension Plan (Continued) A. General Information about the Pension Plans (Continued) Benefits Provided CalPERS provides retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. Benefit provisions under both plans are established by State Statute and City Resolution as follows: Classic PEPRA Prior to On or After Hire dat e January 1, 2013 January 1, 2013 Benefit formula 2.7% @ 55 2% @ 62 Benefit vesting schedule 5 years service 5 years service Benefit payments Monthly for life Monthly for life Retirement age 50 yrs 52 yrs Monthly benefits, as a % of eligible compensation 2.0%-2.7%, 50 yrs -55 yrs, resp ectively 1.0%-2.0%, 52 yrs -62 yrs, resp ectively Required employee contribution rate (FY22-23) 8.00% 6.25% Required employer contribution rate (FY22-23) 11.50% 11.50% Required employer contribution rate (FY21-22) 11.38% 11.38% Miscellaneous Classic PEPRA Prior to On or After Hire dat e January 1, 2013 January 1, 2013 Benefit formula 3.0% @ 50 2.7% @ 57 Benefit vesting schedule 5 years service 5 years service Benefit payments Monthly for life Monthly for life Retirement age 50 yrs 50 yrs Monthly benefits, as a % of eligible 3%, 50 yrs 2.0% - 2.7% 50 yrs - 57 yrs respectively Required employee contribution rate (FY22-23) 9.00% 13.75% Required employer contribution rate (FY22-23) 23.39% 20.70% Required employer contribution rate (FY21-22) 22.78% 22.78% Safety Participants are eligible for non-industrial disability retirement if they become disabled and have at least 5 years credited service. There is no special age requirement. The standard non-industrial disability retirement benefit is a monthly allowance equal to 1.8 percent of final compensation, multiplied by service years. Industrial disability benefits are not offered to miscellaneous employees. The City provides industrial disability retirement benefits to safety employees only. The industrial disability retirement benefit is a monthly allowance equal to 50 percent of final compensation. . . Item 11 Page 64 of 84 Electric Enterprise Fund Of the City of Vernon Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023 39 Note 8 – Pension Plan (Continued) A. General Information about the Pension Plans (Continued) Benefits Provided (Continued) An employee's beneficiary may receive the basic death benefit if the employee becomes deceased while actively employed. The employee must be actively employed with the City to be eligible for this benefit. An employee's survivor who is eligible for any other pre-retirement death benefit may choose to receive that death benefit instead of this basic death benefit. The basic death benefit is a lump sum in the amount of the employee's accumulated contributions, where interest is currently credited at 7.5 percent per year, plus a lump sum in the amount of one month's salary for each completed year of current service, up to a maximum of six months' salary. For purposes of this benefit, one month's salary is defined as the member's average monthly full-time rate of compensation during the 12 months preceding death. Upon the death of a retiree, a one-time lump sum payment of $500 will be made to the retiree’s designated survivor(s), or to the retiree’s estate. Benefit terms provide for annual cost-of-living adjustments to each employee’s retirement allowance. Beginning the second calendar year after the year of retirement, retirement and survivor allowances will be annually adjusted on a compound basis up to 2 percent. Contributions Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on July 1 following notice of a change in the rate. Funding contributions for both Plans are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute to the difference between the actuarially determined rate and the contribution rate of employees. For the year ended Jun 30, 2023, the Electric Fund’ share of employer contributions made to the plans was $3,021,673. B. Net Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions Assumptions The net pension liability of each of the Plans is measured as of June 30, 2022, using an annual actuarial valuation as of June 30, 2021, rolled forward to June 30, 2022, using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is shown below. Actuarial Cost Method Actuarial Assumptions: Discount Rate Inflation Salary Increases Mortality Rate Table(1) Post Retirement Benefit Increase Entry Age Normal 6.90% 2.30% Varies by Entry Age and Service Derived using CalPERS’ Membership Data for all Funds. The lesser of contract COLA or 2.30% until Purchasing Power Protection. Allowance floor on purchasing power applies, 2.30% thereafter (1)The mortality table used was developed based on CalPERS-specific data. The probabilities of mortality are based on the 2021 CalPERSExperience Study for the period from 2001 to 2019. Pre-retirement and Post-retirement mortality rates include generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries. For more details on this table, please refer to the CalPERS Experience Study and Review of Actuarial Assumptions report from November 2021 that can be found on the CalPERS website. . . Item 11 Page 65 of 84 Electric Enterprise Fund Of the City of Vernon Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023 40 Note 8 – Pension Plan (Continued) B. Net Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions (Continued) Long-Term Expected Rate of Return The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Using historical returns of all the funds’ asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11+ years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the rounded single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equal to the single equivalent rate calculated above and adjusted to account for assumed administrative expenses. The expected real rates of return by asset class are as follows: Assumed Asset Allocation Global Equity - Cap-weighted 30.00% 4.54% Global Equity - Non-Cap-weighted 12.00% 3.80% Private Equity 13.00% 7.28% Treasury 5.00% 0.27% Mortgage-backed Securities 5.00% 0.50% Investment Grade Corporates 10.00% 1.56% High Yield 5.00% 2.27% Emerging Market Debt 5.00% 2.48% Private Debt 5.00% 3.57% Real Assets 15.00% 3.21% Leverage -5.00% -0.59% 100% 1 An expected inflation of 2.30% used for this period. 2 Figures are based on the 2021 Asset Liability Management study. Asset Class1 Real Return1,2 Discount Rate The discount rate used to measure the total pension liability was 6.90%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on the assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability. . . Item 11 Page 66 of 84 Electric Enterprise Fund Of the City of Vernon Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023 41 Note 8 – Pension Plan (Continued) B. Net Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions (Continued) Proportionate Share of Net Pension Liability – Allocation of the City’s Pension Plans to the Electric Fund The Electric Fund’s net pension liability for the Plans is measured as the proportionate share of the aggregate net pension liability of the City’s miscellaneous agent multiple-employer plan and safety cost-sharing plan. The Electric Fund’s proportionate share of the aggregate net pension liability was based on the Electric Fund’s current year share of contributions of the pension plans relative to the City’s total current year contributions to the pension plans. The Electric Fund’s proportionate share of the aggregate net pension liability for the pension plans as of the measurement dare ended June 30, 2021 and 2022 were as follows: Total Pension Plan Fiduciary Net Net Pension Liability Position Liability/(Asset) Proportionate (a) (b) (c) = (a) - (b) Share Balance at 6/30/21 (Valuation Date) 69,252,712$ 56,791,532$ 12,461,180$ 14.16% Balance at 6/30/22 (Measurement Date) 96,273,975 66,718,355 29,555,620 18.74% Net Changes during 2021-2022 27,021,263 9,926,823 17,094,440 4.58% Increase (Decrease) Pension Expense and Deferred Outflows and Inflows of Resources For the measurement period ended June 30, 2022, the Electric Fund recognized its proportionate share of the aggregate pension expense totaled $792,954. At June 30, 2023, the Electric Fund reported its proportionate share of the deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows Deferred Inflows of Resources of Resources Contribution made after measurement period 3,021,673$ -$ Changes of assumptions 2,708,856 (205,784) Difference between expected and actual experienc 903,935 - Net difference between projected and actual earning on pension plan investments 4,504,716 - Adjustment due to differences in proportions 564,318 - Difference betwwen City contributions and p roportionate share of contribution - (1,273,445) T otal 11,703,498$ (1,479,229)$ $3,021,673 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ending June 30, 2024. Differences between projected and actual investment earnings are amortized on a five-year straight-line basis and all other amounts are amortized over the expected average remaining service lives of all members that are provided with benefits. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows: . . Item 11 Page 67 of 84 Electric Enterprise Fund Of the City of Vernon Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023 42 Note 8 – Pension Plan (Continued) B. Net Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions (Continued) Pension Expense and Deferred Outflows and Inflows of Resources (Continued) Measurement Period Ending June 30 Total 2023 2,162,528$ 2024 1,620,089 2025 713,357 2026 2,706,622 Total 7,202,596$ Sensitivity of the Net Pension Liability to Changes in the Discount Rate The following presents the Electric Fund’s proportionate share of the Plans’ aggregate net pension liability, calculated using a discount rate of 6.90%, as well as what the Electric Fund’s proportionate share of the Plans’ aggregate net pension liability would be if it were calculated using a discount rate that is a 1-percentage point lower (5.90%) or a 1-percentage point higher (7.90%) than the current rate: Discount Rate Current Discount Discount Rate - 1% (5.90%) Rate (6.90%) + 1% (7.90%) Miscellaneous Plan 16,171,119$ 10,605,423$ 6,061,032$ Safety Plan 26,909,955$ 18,950,197$ 12,444,894$ Electric Fund's Net Pension Liability/(Asset) Pension Plan Fiduciary Net Position Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports. Payable to the Pension Plan At June 30, 2023, the Electric Fund had no outstanding amount of contributions to the pension plans required for the year ended June 30, 2023. . . Item 11 Page 68 of 84 Electric Enterprise Fund Of the City of Vernon Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023 43 Note 9 – Other Postemployment Benefits (“OPEB”) A. General Information about the OPEB Plan The other postemployment benefits (“OPEB”) described in the following paragraphs relate to the City’s OPEB plan. The Electric Fund’s share of the net pension liability of the City’s OPEB Plan is reported as a cost-sharing plan in these financial statements since the Electric Fund’s operations are handled by City employees who are eligible to participate in the City’s OPEB plan. Benefits Provided Generally, the City will provide a postemployment benefit plan for the employee only to those who retire at age sixty (60) or later with twenty (20) years of continuous uninterrupted service up to the age of sixty-five (65). Alternatively, employees who retire before the age of sixty (60) with twenty (20) years of continuous uninterrupted service, will be permitted to pay their medical and dental premium cost and upon reaching the age of fifty (50), the City will pay the premium for the medical and dental plans until they reach the age of sixty-five (65). Resolution 2011-129 provided lifetime medical benefits to Police Management employees and their spouses, who have been employed as sworn safety personnel for a minimum of twenty (20) years and a minimum of ten (10) years of that service have been with the City of Vernon. Resolution 2011-127 sets forth the MOU of the Vernon Police Officers’ Benefit Association, provided lifetime medical benefits to those employees and their spouses, who have been employed as sworn safety personnel for a minimum of twenty (20) years and a minimum of ten (10) years of that service has been with the City of Vernon. Resolution 2012-217 granted specific retiree medical benefits to employees who retire during the 2012-2013 fiscal year in order to provide an incentive for early retirement whereby the City authorized the payment of medical and dental insurance premiums for eligible retiring employees and their eligible dependents with at least ten (10) years of service plus 5% for each additional full year of service above the ten (10) years of service, and that this offer be extended as an option to safety and safety management groups, at their discretion, in addition to the related options provided in the Vernon Firefighters Association MOU and the Vernon Police Officers’ Benefit Association MOU. Resolution 2013-06 declared that the retiree medical benefits which had not been a vested right for employees will continue to be nonvested right for employees who continue to be employed by the City on or after July 1, 2013, but will become a vested right for those who retire during the 2012-2013 fiscal year. The City’s plan is considered a substantive OPEB plan and the City recognizes cost in accordance with GASB Statement No 75. The City may terminate its unvested OPEB in the future. Contributions The City has established an irrevocable OPEB trust with assets dedicated to paying future retiree medical benefits. The City intends to contribute 100% or more of the actuarially determined contribution for the explicit subsidy liability only. The portion of the liability due to the implicit subsidy is not prefunded but is paid as benefits come due. For the fiscal year ended June 30, 2023, the Electric Fund’s proportionate share of contributions made to the trust was $288,336, and $294,586 for retiree premiums, resulting in a total contribution of $582,922. B. Net OPEB Liabilities, OPEB Expenses, and Deferred Outflows/Inflows of Resources Related to OPEB The OPEB liability was measured as of June 30, 2022, and total liability used to calculate the net OPEB liability was determined by an actuarial valuation as of June 30, 2022. . . Item 11 Page 69 of 84 Electric Enterprise Fund Of the City of Vernon Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023 44 Note 9 – Other Postemployment Benefits (“OPEB”) (Continued) B. Net OPEB Liabilities, OPEB Expenses, and Deferred Outflows/Inflows of Resources Related to OPEB (Continued) Significant Actuarial Assumptions Used for Total OPEB Liability The total OPEB liability, measured as of June 30, 2022, was determined using the following actuarial assumptions: Actuarial Cost Method Actuarial Assumptions: Asset Valuation Method Inflation Salary Increases Long Term return on Assets Discount Rate Mortality Improvement Healthcare Trend 6.00% Entry Age Normal Market value of assets 2.30% 2.80% wage inflation plus seniority, merit, and promotion salary increases based on CalPERS Expenditure Study and Review of Actuarial Assumptions published in November 2021 6.00% CalPERS 2021 Experience Study; Project with MP Scale Based on 2022 Getzen model with in inflation rate of 7.00% non-Medicare / 5.50% Medicare decreasing gradually to an ultimate rate of 3.73% by 2075 Change in assumptions Discount rate changed from 6.25% at June 30, 2021 to 6.00% at June 30, 2022. Healthcare trend rate assumption and mortality improvement scale were updated. Discount Rate The discount rate used to measure the total OPEB liability was 6.00%. The projection of cash flows used to determine the discount rate assumed that City contributions will be made at rates equal to the actuarially determined contribution rates. Based on those assumptions, the OPEB plan's fiduciary net position was projected to be available to make all projected OPEB payments for current active and inactive employees and beneficiaries. Therefore, the long-term expected rate of return on OPEB plan investments was applied to all periods of projected benefit payments to determine the total OPEB liability. Long-Term Expected Rate of Return Long-term Target Expected Real Asset Class Allocation Rate of Return Global Equity 49.00% 4.50% Fixed Income 23.00% 1.40% Global Real Estate (REITs) 20.00% 3.70% Treasury Inflation Protected Securities (TIPS) 5.00% 0.50% Commodities 3.00% 1.10% Total 100.00% * Preliminary estimate, pending confirmation by CalPERS . . Item 11 Page 70 of 84 Electric Enterprise Fund Of the City of Vernon Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023 45 Note 9 – Other Postemployment Benefits (“OPEB”) (Continued) B. Net OPEB Liabilities, OPEB Expenses, and Deferred Outflows/Inflows of Resources Related to OPEB (Continued) The Electric Fund’s proportionate share of the net OPEB liability as of the measurement dates ended June 30, 2021 and 2022 was as follows: Total OPEB Plan Fiduciary Net Net OPEB Liability Position Liability/(Asset) Proportionate (a) (b) (c) = (a) - (b) Share Balance at June 30, 2021 3,877,225$ 1,559,455$ 2,317,770$ 14.16% Balance at June 30, 2022 (Measurement Date) 5,120,558 2,049,966 3,070,592 18.74% Net changes during 2021-22 1,243,333 490,511 752,822 4.58% Sensitivity of the Net OPEB Liability to Changes in the Discount Rate The following presents the Electric Fund’s proportionate share of the net OPEB liability if it were calculated using a discount rate that is 1% point lower (5.00%) or 1% point higher (7.00%) than the current rate: Discount Rate Current Discount Discount Rate -1% (5.00%) Rate (6.00%) +1 % (7.00%) 3,652,450$ 3,070,592$ 2,582,787$ Plan's Net OPEB Liability Sensitivity of the Net OPEB Liability to Changes in the Healthcare Cost Trend Rates The following presents the Electric Fund’s proportionate share of the net OPEB liability if it were calculated using a healthcare cost trend rates that are 1% point lower (5.3% decreasing to an ultimate rate of 2.8%) or 1% point higher (7.3% decreasing to an ultimate rate of 4.8%) than the current rate: Healthcare Cost Healthcare Cost Healthcare Cost Trend Rate - 1% Trend Rate Trend Rate + 1% 2,847,670$ 3,070,592$ 3,286,271$ Plan's Net OPEB Liability OPEB Expense and Deferred Inflows and Outflows of Resources Related to OPEB For the year ended June 30, 2023, the Electric Fund recognized its proportionate share of the OPEB credit of $(131,489). At June 30, 2023, the Electric Fund reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: Deferred Outflows Deferred Inflows of Resources of Resources Contribution made after measurement period 582,922$ -$ Changes in assumptions 155,069 (481,295) Difference between expected and actual experience 19,694 (648,673) Net difference between projected and actual earning on OPEB plan investments 193,691 - Total 951,376$ (1,129,968)$ . . Item 11 Page 71 of 84 Electric Enterprise Fund Of the City of Vernon Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023 46 Note 9 – Other Postemployment Benefits (“OPEB”) (Continued) B. Net OPEB Liabilities, OPEB Expenses, and Deferred Outflows/Inflows of Resources Related to OPEB (Continued) The $582,922 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net OPEB liability in the year ended June 30, 2024. Differences between projected and actual investment earnings are amortized on a five-year straight-line basis and all other amounts are amortized over the expected average remaining service lives of all members that are provided with benefits. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized as OPEB expense as follows: Deferred M easurement Period Outflows/(Inflows) Ending June 30 of Resources 2023 (366,163)$ 2024 (363,578) 2025 (44,666) 2026 59,090 2027 (31,282) Thereafter (14,915) Total (761,514)$ Payable to the OPEB Plan At June 30, 2023, the Electric Fund had no outstanding amount of contributions to the OPEB plan required for the year ended June 30, 2023. Note 10 – Southern California Public Power Authority The Southern California Public Power Authority (the “SCPPA”) was formed in 1980 as a not for profit joint powers agency. SCPPA is currently comprised of 11 Southern California cities and an irrigation district. The SCPPA’s purpose is planning, financing, acquiring, constructing, and operating of projects that generate or transmit electric energy for sale to its participants. The joint powers agreement has a term expiring in 2030 or such later date as all bonds and notes of SCPPA and interest thereon have been paid in full or adequate provisions for payments have been made. A copy of SCPPA’s audited financial statements can be reviewed on their website at www.scppa.org or can be obtained by written request at 1160 Nicole Ct Glendora, CA 91740. A. Take or Pay Contract The SCPPA’s interest of entitlements in natural gas generation, and transmission projects are jointly owned with other utilities. Under these arrangements, a participating member has an undivided interest in a utility plant and is responsible for its proportionate share of the costs of construction and operation and is entitled to its proportionate share of the energy, available transmission capacity, or natural gas produced. Each joint plant participant, including the SCPPA, is responsible for financing its share of construction and operating costs. The City has the following “take or pay” contract with the SCPPA: . . Item 11 Page 72 of 84 Electric Enterprise Fund Of the City of Vernon Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023 47 Note 10 – Southern California Public Power Authority (Continued) A. Take or Pay Contract (Continued) Palo Verde Project The SCPPA purchases a 5.91% interest in the Palo Verde Nuclear Generating Station (the “Station”), a nuclear- fired generating station near Phoenix, Arizona, from Salt River Project Agricultural Improvement and Power District, and a 6.55% share of the right to use certain portions of the Arizona Nuclear Power Project Valley Transmission System. The City has a 4.9% entitlement share of the SCPPA’s interest in the station. Between 1983 and 2008, the SCPPA issued $3.266 billion in debt of Power Project Revenue Bonds for the Station to finance the bonds and the purchase of the SCPPA’s share of the Station and related transmission right. The bonds are not obligations of any member of the SCPPA or public agency other than the SCPPA. Under a power sales contract with the SCPPA, the City is obliged on a “take or pay” basis for its proportionate share of power generated, as well as to make payments for its proportionate share of the operating and maintenance expenses of the Station, debt service on the bonds and any other debt, whether or not the project or any part thereof or its output is suspended, reduced or terminated. The City took its proportionate share of the power generated and its proportionate share of costs during the fiscal year 2023 was $3,730,000. The City expects no significant increases in costs related to its nuclear resources. B. Power Purchase Commitments The SCPPA has entered into power purchase agreements with project participants. These agreements are substantially “take-and-pay” contracts where there may be other obligations not associated with the of energy. The City has entered into power purchase agreements with the SCPPA related to the following projects: Astoria 2 Solar Project On July 23, 2014, the SCPPA entered into a power purchase agreement with Recurrent Energy for solar energy from the Astoria 2 Solar Project. SCPPA is entitled to 35 MW of photovoltaic generating capacity from commercial operation to December 31, 2021 and 45 MW of generating capacity from January 1, 2022 until the expected expiration date of December 31, 2036. The commercial operation date was December 2016. Power and Water Resources Pooling SCPPA, Lodi, Corona, Moreno Valley, and Rancho Cucamonga, are each buying the output of a separate portion of the facility, which is located in Kern County, California. SCPPA has purchase options in the 10th, 15th, and 20th Contract Years. The project is forecasted to start at a capacity factor of 31% with a 0.5% annual degradation. ACES Power Marketing is the third-party scheduling coordinator for the project. The City contracted to purchase 57.1429% until December 31, 2021, and 66.6667% thereafter, of the output. The City’s proportionate share of costs for fiscal year 2023 was $10,114,000. Puente Hills Landfill Gas-to-Energy Project On June 25, 2014, the SCPPA entered into a power purchase agreement with County Sanitation District No. 2 of Los Angeles County for 46 MW of the electric generation from a landfill gas to energy facility, located at Whittier, California. The project began deliveries to the SCPPA on January 1, 2017 for a term of 10 years. The City contacted to purchase 23.2558% of the output. The City’s proportional share of the costs during fiscal year 2023 was $6,616,000. . . Item 11 Page 73 of 84 Electric Enterprise Fund Of the City of Vernon Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023 48 Note 10 – Southern California Public Power Authority (Continued) B. Power Purchase Commitments (Continued) Antelope DSR 1 Solar Project On July 16, 2015, the SCPPA, entered into a power purchase agreement with Antelope DSR 1, LLC for 50 MW solar photovoltaic generating capacity from the Antelope DSR 1 Solar Facility. The facility is located near Lancaster, California, and commercial operation occurred on December 16, 2016 for a term of 20 years. The City’s proportionate share of costs during fiscal year 2023 was $6,124,000. Hoover Dam Hydroelectric Power Plant The Hoover Dam Hydroelectric Power Plant is located on the Arizona-Nevada border, approximately 25 miles southeast of Las Vegas. This hydropower plant is part of the larger Hoover Dam facility, which was completed in 1935 and controls the flow of the Colorado River. The Hoover Dam facility consists of 17 generating units and two service generating units with a total installed capacity of 2,080 MW. In 1987, Vernon entered a power purchase agreement to purchase 22 MW of firm capacity from the Western Area Power Administration. SCPPA and other contractor allocations of Hoover power have been extended for 50 years beyond the power purchase agreement’s original expiration in 2017, which now expires in 2067. The City’s proportionate share of costs during fiscal year 2023 was $574,973. Desert Harvest 2 REC Solar PV Project On December 17, 2020, SCPPA executed a power purchase agreement with EDF Renewables for 70 MW of solar PV capacity from the Desert Harvest 2 Solar PV project. The project is a fixed-tilt PV system that interconnects at the Marketplace substation and is located on 1,200 acres of Bureau of Land Management land in Desert Center, California. The REC + Index agreement serves the cities of Anaheim, Burbank, and Vernon. VPU is entitled to 17.14 percent of the Project’s output or about 12 MW. This power purchase agreement, which expires at the end of 2045, only provides renewable energy credits (RECs). The City’s proportionate share of costs during fiscal year 2023 was $627,755. Daggett Solar PV and BESS Project The Daggett Solar plus BESS project is a single‑axis tracker 65 MW solar with a 33 MW 4‑hour Lithium‑Ion BESS. The commercial operation date was December 12, 2023. The project, located in the City of Daggett in San Bernardino County, is a portion of an approximately 482 MW solar PV facility. The project is being developed by Clearway Energy Group and is owned by Daggett Solar Power 2 LLC. On June 24, 2022, SCPPA executed a PPA for 65 MW for the cities of Vernon and Cerritos. The PPA entitles VPU to 60 MW of solar PV output and 30 MW of energy storage. The power purchase agreement expires on December 31, 2044. Sapphire Solar Project On January 17, 2023, the SCPPA, entered into a power purchase agreement with EDF Renewables North America for 39 MW solar power and up to approximately 19.7 MW of battery storage with associated green attributes through the Sapphire Solar Project for a projected annual amount of $6,665,000 over a 20-year term. The expected start date of the project is December 31, 2025. . . Item 11 Page 74 of 84 REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED) 49 . . Item 11 Page 75 of 84 Fiscal year 2017 2018 2019 2020 2021 Measurement period 2015-16 2016-17 2017-18 2018-19 2019-20 Electric Fund's proportionate share of the net pension liability 9,913,819$ 11,622,798$ 12,037,649$ 13,198,355$ 16,262,340$ 1,368,926$ 2,844,009$ 3,119,774$ 3,153,590$ 2,971,068$ Electric Fund's proportionate share of the net pension liability as a percentage of covered payroll 724.20% 408.68% 385.85% 418.52% 547.36% Electric Fund Fiduciary Net Position as a percentage of the total pension liability 78.91% 77.85% 77.68% 76.15% 74.79% 1 2 Notes to Schedule: Methods and assumptions used to determine contribution rates: Actuarial cost method Entry Age Actuarial Cost Method Amortization method Level percentage of payroll Asset valuation method Fair Market Value Inflation 2.500% Salary increases varies by entry age and service Payroll Growth 2.750% Investment rate of return Retirement age Mortality Electric Enterprise Fund of the City of Vernon Required Supplementary Information (Unaudited) Schedule of Proportionate Share of the Net Pension Liability and Related Ratios Last Ten Fiscal Years1 California Public Employees' Retirement System Defined Pension Plan For the Year Ended June 30, 2023 Fiscal year ended June 30, 2017 was the first fiscal year the City allocated a portion of the net pension liability to the Electric Fund. Additional years of information will be displayed as it becomes available. Covered payroll2 The probabilities of Retirement are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre-retirement and Post-retirement mortality rates include 15 years of projected mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries. Includes one year’s payroll growth using 2.80 percent payroll growth assumption for fiscal years ended June 30, 2022; 2.75 percent payroll growth assumption for fiscal years ended June 30, 2018-21; 3.00 percent payroll growth assumption for fiscal years ended June 30, 2015-17. The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2022-23 were derived from the June 30, 2020 funding valuation report. 7% Net of Pension Plan Investment and Administrative Expenses; includes Inflation. 50 . . Item 11 Page 76 of 84 Fiscal year 2022 2023 Measurement period 2020-21 2021-22 Electric Fund's proportionate share of the net pension liability 12,461,180$ 29,555,620$ Covered payroll2 2,763,712$ 4,037,276$ Electric Fund's proportionate share of the net pension liability as a percentage of covered payroll 450.89% 732.07% Electric Fund Fiduciary Net Position as a percentage of the total pension liability 85.45% 69.30% Electric Enterprise Fund of the City of Vernon Required Supplementary Information (Unaudited) Schedule of Proportionate Share of the Net Pension Liability and Related Ratios (Continued) For the Year Ended June 30, 2023 Last Ten Fiscal Years1 California Public Employees' Retirement System Defined Pension Plan 51 . . Item 11 Page 77 of 84 Fiscal year 2017 2018 2019 2020 2021 10.41% 10.60% 10.61% 10.93% 12.03% Actuarially determined contribution 947,914$ 1,005,691$ 1,158,143$ 1,347,573$ 1,518,109$ Contributions in relation to the actuarially determined contribution (947,914) (1,005,691) (1,158,143) (1,347,573) (1,518,109) Contribution deficiency (excess) -$ -$ -$ -$ -$ Covered payroll2 2,844,009$ 3,119,774$ 3,153,590$ 2,971,068$ 2,763,712$ Contributions as a percentage of covered payroll.33.33% 32.24% 36.72% 45.36% 54.93% 1 2 Notes to Schedule: Methods and assumptions used to determine contribution rates: Actuarial cost method Entry Age Actuarial Cost Method Amortization method Level percentage of payroll Asset valuation method Fair Market Value Inflation 2.500% Salary increases varies by entry age and service Payroll Growth 2.750% Investment rate of return Retirement age Mortality Electric Enterprise Fund of the City of Vernon Required Supplementary Information (Unaudited) Schedule of Contributions - Pensions For the Year Ended June 30, 2023 Last Ten Fiscal Years1 California Public Employees' Retirement System Defined Pension Plan Fiscal year ended June 30, 2017 was the first year the City allocated a portion of the net pension liability to the Electric Fund. Additional years will be displayed as it becomes available. The probabilities of Retirement are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre-retirement and Post-retirement mortality rates include 15 years of projected mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries. Includes one year’s payroll growth using 2.80 percent payroll growth assumption for fiscal years ended June 30, 2022; 2.75 percent payroll growth assumption for fiscal years ended June 30, 2018-21; 3.00 percent payroll growth assumption for fiscal years ended June 30, 2015-17. The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2022-23 were derived from the June 30, 2020 funding valuation report. 7% Net of Pension Plan Investment and Administrative Expenses; includes Inflation. 52 . . Item 11 Page 78 of 84 Fiscal year 2022 2023 14.17% 18.74% Actuarially determined contribution 2,012,496$ 3,021,673$ Contributions in relation to the actuarially determined contribution (2,012,496) (3,021,673) Contribution deficiency (excess)-$ -$ Covered payroll2 4,037,276$ 4,150,320$ Contributions as a percentage of covered payroll.49.85%73% Electric Enterprise Fund of the City of Vernon Required Supplementary Information (Unaudited) Schedule of Contributions - Pensions (Continued) For the Year Ended June 30, 2023 Last Ten Fiscal Years1 California Public Employees' Retirement System Defined Pension Plan 52 . . Item 11 Page 79 of 84 Fiscal year 2018 2019 2020 2021 2022 Measurement period 2016-171 2017-18 2018-19 2019-20 2020-21 Electric Fund's proportion of the net OPEB liability 6.43% 10.61% 10.93% 12.02% 14.16% Electric Fund's proportionate share of the net OPEB liability 2,333,037$ 2,449,998$ 2,394,613$ 2,429,343$ 2,317,770$ Covered - employee payroll 2,153,877$ 2,152,941$ 3,731,469$ 3,491,517$ 3,810,495$ Electric Fund's proportionate share of the net OPEB liability as a percentage of covered - employee payroll 108.32% 113.80% 64.17% 69.58% 60.83% Electric Fund's Fiduciary Net Position as a percentage of the total OPEB liability 2.83% 8.62% 16.30% 25.73% 40.22% 1 Other Postemployment Benefits ("OPEB") Plan Historical information is presented only for measurement periods after GASB 75 was implemented in fiscal year of 2017-18 (measurement period of 2016-17). Additional years of information will be displayed as it becomes available. For the Year Ended June 30, 2023 Last Ten Fiscal Years1 Benefits Liability and Related Ratios Electric Enterprise Fund of the City of Vernon Required Supplementary Information (Unaudited) Schedule of Proportionate Share of the Net Other Postemployment 54 . . Item 11 Page 80 of 84 Fiscal year 2023 Measurement period 2021-22 Electric Fund's proportion of the net OPEB liability 18.74% Electric Fund's proportionate share of the net OPEB liability 3,070,592$ Covered - employee payroll 4,755,269$ Electric Fund's proportionate share of the net OPEB liability as a percentage of covered - employee payroll 64.57% Electric Fund's Fiduciary Net Position as a percentage of the total OPEB liability 40.03% Other Postemployment Benefits ("OPEB") Plan For the Year Ended June 30, 2023 Last Ten Fiscal Years1 Benefits Liability and Related Ratios (Continued) Electric Enterprise Fund of the City of Vernon Required Supplementary Information (Unaudited) Schedule of Proportionate Share of the Net Other Postemployment 55 . . Item 11 Page 81 of 84 Fiscal year 2018 2019 2020 2021 2022 Actuarially determined contribution 173,080$ 285,605$ 211,038$ 184,942$ 217,810$ Contributions in relation to the actuarially determined contribution (132,751) (317,055) (427,758) (376,391) (415,223) Contribution deficiency (excess)40,329$ (31,450)$ (216,720)$ (191,449)$ (197,413)$ Covered-employee payroll 2,152,941$ 3,731,469$ 3,491,517$ 3,810,495$ 4,755,269$ Contributions as a percentage of covered-employee payroll. 6.17% 8.50% 12.25% 9.88% 8.73% 1 Notes to Schedule: Methods and assumptions used to determine contribution rates: Actuarial cost method Entry Age Normal Cost Method Amortization method Level percentage of payroll Asset valuation method Market valuation of assets Discount Rate 6.25% Payroll Growth 3.00% General Inflation Rate 2.5% per year Health Trend 5.6 in FY2023, step down 0.5% per year to 3.9% by 2076 The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2022-23 were derived from the June 30, 2020 funding valuation report. Fiscal Year 2018 was the first year of implementation, therefore only six years are shown. Electric Enterprise Fund of the City of Vernon Required Supplementary Information (Unaudited) Schedule of Contributions - Other Postemployment Benefits For the Year Ended June 30, 2023 Last Ten Fiscal Years1 Other Postemployment Benefits ("OPEB") Plan 56 . . Item 11 Page 82 of 84 Fiscal year 2023 Actuarially determined contribution 262,835$ Contributions in relation to the actuarially determined contribution (582,922) Contribution deficiency (excess)(320,087)$ Covered-employee payroll 4,587,902$ Contributions as a percentage of covered-employee payroll.12.71% Electric Enterprise Fund of the City of Vernon Required Supplementary Information (Unaudited) Schedule of Contributions - Other Postemployment Benefits (Continued) For the Year Ended June 30, 2023 Last Ten Fiscal Years1 Other Postemployment Benefits ("OPEB") Plan 57 . . Item 11 Page 83 of 84 This page intentionally left blank. 58 . . Item 11 Page 84 of 84 Water Enterprise Fund of the City of Vernon Vernon, California Financial Statements and Independent Auditors’ Reports For the Year Ended June 30, 2023 . . Item 11 Page 1 of 78 . . Item 11 Page 2 of 78 Water Enterprise Fund of the City of Vernon For the Year Ended June 30, 2023 Table of Contents Page INTRODUCTORY SECTION (UNAUDITED): A Message from the General Manager of Vernon Public Utilities ...................................................................... i FINANCIAL SECTION: Independent Auditor’s Report on the Audit of the Financial Statements .......................................................... 1 Management’s Discussion and Analysis (Required Supplementary Information) (Unaudited) ...................... 5 Basic Financial Statements: Statement of Net Position ........................................................................................................................... 12 Statement of Revenues, Expenses, and Changes in Net Position ............................................................... 15 Statement of Cash Flows ............................................................................................................................ 16 Notes to the Basic Financial Statements ..................................................................................................... 23 Required Supplementary Information (Unaudited): Schedule of Proportionate Share of the Net Pension Liability and Related Ratios ........................................... 44 Schedule Contributions – Pensions ................................................................................................................... 46 Schedule of Proportionate Share of the Net Other Postemployment Benefits Liability and Related Ratios .... 48 Schedule Contributions – Other Postemployment Benefits .............................................................................. 50 . . Item 11 Page 3 of 78 This page intentionally left blank. . . Item 11 Page 4 of 78 i A Message From the General Manager Goes Here. . . Item 11 Page 5 of 78 ii . . Item 11 Page 6 of 78 iii . . Item 11 Page 7 of 78 iv ELECTRIC FUND Introduction Vernon Public Utilities (VPU) remains dedicated to its core mission of providing reliable, safe, and affordable energy while meeting California's clean energy goals. VPU is building a full-service utility that embraces emerging technologies and capitalizes on strategic opportunities. VPU goes beyond electricity, offering water, natural gas, and fiber optic services. As a publicly owned utility, it prioritizes customer focus, responsible operations, and a sustainable future for the Vernon community. With local control, VPU ensures transparency, competitive rates, and tailored policies to serve the community's needs. In partnership with the local community, VPU is shaping a sustainable energy future for Vernon. Awards The American Public Power Association (APPA) designates Reliable Public Power Provider recognition (RP3) to utilities that demonstrate exceptional proficiency in four key areas: safety, reliability, workforce development, and system improvement. Consistent with its mission, VPU strives for excellence in these areas. APPA has awarded VPU its highest – Diamond Level – RP3 designation for three consecutive terms, encompassing nine years from 2016 to 2025. VPU earned these honors by providing exceptionally reliable and safe electric service. VPU is one of only 26 of the more than 2,000 public power utilities across the United States to achieve Diamond Level RP3 designation from 2022 to 2025. APPA also awarded VPU the Safety Award for Excellence every year since 2018, recording no reportable safety incidents for 2023. Reliability VPU emphasizes operational reliability as a cornerstone of its strategic vision. VPU utilizes IEEE’s beta methodology to track reliability metrics to assess and enhance the resilience and dependability of VPU’s services. By tracking and analyzing key reliability indicators, VPU proactively identifies areas for improvement, allocates resources effectively, and implements targeted strategies to maintain an unwavering commitment to providing consistent and uninterrupted power supply to its valued customers. . . Item 11 Page 8 of 78 v Three Reliability Indicators VPU tracks three reliability indicators that the electric utility industry uses to assess and improve the performance of power distribution systems. System Average Interruption Frequency Index (SAIFI) Quantifies the frequency of power outages per customer within a year. System Average Interruption Duration Index (SAIDI) Measures the duration of power outages experienced by the average customer over a year. Customer Average Interruption Duration Index (CAIDI) Provides the average time it takes to restore power after an outage, calculated by dividing SAIDI by SAIFI. VPU leverages data and industry benchmarks to improve service quality, minimize downtime, and ensure a reliable power supply. VPU benchmarks its performance against data from the U.S. Energy Information Administration (EIA) to ensure alignment with industry standards and best practices. For the data year 2021, VPU’s average customer experienced 0.5 outages for 38.2 minutes. The restoration time was approximately 76.4 minutes. These metrics place VPU among the top 25 percent of the electric industry in reliability. Being in the top quartile of electric utility reliability benchmarking signifies VPU’s commitment to excellence, ensuring that the utility consistently delivers dependable service, promotes customer satisfaction, and contributes positively to the overall health of the community it serves. . . Item 11 Page 9 of 78 vi Cause of Outages Virtually all outages in the City of Vernon are from accidental causes. Contact with metallic balloons is the primary cause of outages (indicated as a “foreign object” in the chart below). The Other category includes single instances of storm damage, direct strike, and equipment damage. . . Item 11 Page 10 of 78 vii Energy Resources VPU’s generation portfolio continues to evolve with state mandates for renewable energy and zero- carbon generation. Vernon participates in the CAISO wholesale energy markets under a metered subsystem agreement (MSSA). Five years ago, natural gas generation from MGS and market purchases supplied approximately 59 percent of VPU’s energy resource mix. The remaining energy came from 7.7 percent nuclear, 1.6 percent large hydroelectric, and approximately 32 percent renewables. One of VPU’s central goals of the updated Integrated Resource Plan, approved by the City Council in October 2023, is to increase its renewable generation penetration to 60 percent by 2030 as directed by California statute. The chart below shows VPU’s Fiscal Year (FY) 2022-23 Energy Resource Mix. . . Item 11 Page 11 of 78 viii Natural Gas Resources Malburg Generating Station (MGS) MGS is a 139 MW combined-cycle (CC) plant in the City of Vernon. MGS includes two Siemens GTXI00 natural gas-fired combustion turbine generators (CTGs) and a steam turbine generator (STG). MGS has duct burners, evaporative inlet air coolers, and filters that enable the units to achieve higher levels of power output in selected modes of operation. H. Gonzales Generating Station Units 1 & 2 The H. Gonzales Generating Station Unit 1 and Unit 2, located within the City of Vernon, is a natural gas-fueled facility powered by two Allison 571-KA combustion turbines (CTs), each rated at 5.75 MW, operating solely as peaking units. Both CT units began commercial operation in 1988. Each unit is restricted by air quality regulators to run on natural gas for no more than six hours per day. . . Item 11 Page 12 of 78 ix Zero-Emission Resources Palo Verde Nuclear Station The Palo Verde Nuclear Generating Station (PVNGS) is in Tonopah, Arizona, approximately 55 miles west of Phoenix. It generates the largest capacity of electricity in the United States, with the second-largest rated capacity. The plant consists of three nuclear electric generating units totaling 3,937 MW. In 1981, VPU signed a “take or pay” contract with the Southern California Public Power Authority (SCPPA) for 11 MW of power from Palo Verde. Under the Power Purchase Agreement (PPA), VPU must pay for its proportionate share of power generated and operating and maintenance expenses, regardless of the amount of power taken. Hoover Dam Hydroelectric Power Plant The Hoover Dam Hydroelectric Power Plant is located on the Arizona-Nevada border, approximately 25 miles southeast of Las Vegas. This hydropower plant is part of the larger Hoover Dam facility, which was completed in 1935 and controls the flow of the Colorado River. The Hoover Dam facility consists of 17 generating units and two service generating units with a total installed capacity of 2,080 MW. In 1987, Vernon entered a PPA to purchase 22 MW of firm capacity from the Western Area Power Administration (WAPA). SCPPA and other contractor allocations of Hoover power have been extended for 50 years beyond the PPA’s original expiration in 2017, which now expires in 2067. . . Item 11 Page 13 of 78 x Renewable Energy Resources Puente Hills Landfill Gas Plant The Puente Hills Landfill Gas-to-Energy facility is a 46 MW conventional Rankine Cycle Steam Power Plant that uses landfill gas as fuel to generate electricity. The Los Angeles County Sanitation District (LACSD) constructed the facility and began full commercial operation in January 1987. SCPPA entered a PPA with LACSD for 43 MW of generating capacity from the facility. VPU, through SCPPA, is entitled to 10 MW of renewable capacity from the facility. The PPA expires on December 31, 2030. Astoria II Solar Photovoltaic Facility The Astoria II Solar PV facility is sited on approximately 840 acres between Los Angeles and Kern Counties, and interconnects with the CAISO system at the SCE Whirlwind Substation. The City of Vernon, in conjunction with five other SCPPA municipal utilities, participated in a PPA with Recurrent Energy to purchase the output from the Astoria II Solar facility for 20 years. The PPA entitled Vernon to 20 MW of capacity from January 2017 to December 2021. Starting in January 2022 and extending until the PPA’s expiration in December 2036, VPU is entitled to 30 MW of power. . . Item 11 Page 14 of 78 xi Antelope DSR 1 Solar PV Facility The Antelope DSR 1 Solar PV facility is in the City of Lancaster, Los Angeles County. It was developed by the Sustainable Power Group (sPower) and came online in December 2016. Through SCPPA, VPU owns a PPA with Antelope DSR 1 LLC (a subsidiary of sPower) for 25 MW of output, 50 percent of the facility’s 50 MW capacity, through December 31, 2036. In conjunction with the solar facility, the cities of Riverside and Vernon negotiated an energy storage option in the PPA, which provides for the potential to design, build, and operate an energy storage facility at the site when economically feasible. Desert Harvest 2 REC Solar PV Project On December 17, 2020, SCPPA executed a PPA with EDF Renewables for 70 MW of solar PV capacity from the Desert Harvest 2 Solar PV project. The project is a fixed-tilt PV system that interconnects at the Marketplace substation and is located on 1,200 acres of Bureau of Land Management (BLM) land in Desert Center, California. The REC + Index agreement serves the cities of Anaheim, Burbank, and Vernon. VPU is entitled to 17.14 percent of the Project’s output or about 12 MW. This PPA, which expires at the end of 2045, only provides renewable energy credits (RECs). . . Item 11 Page 15 of 78 xii Daggett Solar PV and BESS Project The Daggett Solar plus BESS project is a single-axis tracker 65 MW solar with a 33 MW 4-hour Lithium-Ion BESS. The commercial operation date (COD) was December 12, 2023. The project, located in the City of Daggett in San Bernardino County, is a portion of an approximately 482 MW solar PV facility. The project is being developed by Clearway Energy Group and is owned by Daggett Solar Power 2 LLC. On June 24, 2022, SCPPA executed a PPA for 65 MW for the cities of Vernon and Cerritos. The PPA entitles VPU to 60 MW of solar PV output and 30 MW of energy storage. The PPA expires on December 31, 2044. Sapphire Solar and BESS Project The Sapphire Solar project is a solar PV and BESS facility being developed by EDF Renewables. Located on 1,140 acres of private land in Riverside County, the project will generate 117 MW of solar power paired with a 59 MW 4-hour Lithium-Ion BESS with a total capacity of 236 MWh. The project will interconnect on an existing Desert Harvest transmission line and deliver to the CAISO System. The bundled energy products include renewable energy, RECs, Resource Adequacy, and other energy attributes. The estimated COD is December 31, 2026. VPU has executed a PPA for 39 MW of solar output combined with 19.67 MW of BESS. The PPA expires on December 1, 2046. . . Item 11 Page 16 of 78 xiii Distribution System Capital Improvement Plan Investing in infrastructure is crucial for a reliable electric utility. As such, Vernon proactively assesses its distribution system, identifying opportunities to bolster reliability, enhance safety, optimize efficiency, and increase operational flexibility. These upgrades will ensure a robust and adaptable electric distribution system, powering a brighter future for the City and its customers. For the past three years, from 2020 through 2023, VPU has been working on a distribution Capital Improvement Plan (CIP) focused on strengthening its infrastructure to prevent outages and grid resiliency to sustain reliability and maintain high service quality. The result is VPU’s Five-Year CIP, which is updated as part of the annual budget process. The plan focuses on infrastructure upgrades to help achieve a strategic vision that addresses its five-square-mile service territory and the unique industrial characteristics that make up the City. The plan defined strategies that involve in-depth evaluation of the condition of the electric system, performing detailed engineering analysis of distribution system capability and performance, and listed construction and upgrade projects to help transform the system into an intelligent, increasingly automated, and technologically advanced electric system. The CIP addresses the key areas and construction required for replacements or upgrades. The success of the CIP results in the improved electric system reliability provided to the City of Vernon residential and business customers. The plan also aims to reduce VPU's carbon footprint by removing greenhouse gas (GHG) emissions from the system. The plan includes replacing switches and circuit breakers that use sulfur hexafluoride (SF6) for insulation and leverages new technologies for replacing and upgrading these units. The plan aims to increase system . . Item 11 Page 17 of 78 xiv reliability for the local electric grid and environmental improvements for a sustainable future for the community. VPU estimates that the FY 2024-25 CIP is $25 million. . . Item 11 Page 18 of 78 xv Customer Service VPU continues to educate its business community on the importance of efficiency through its no-cost energy audit services. Over the years, businesses have successfully leveraged VPU's energy audit services to identify various efficiency opportunities. The utility's longstanding Custom Incentive Program has consistently provided incentives for commercial electric customers that implement efficiency upgrades that produce above building code savings. For FY 2022-23, VPU's energy efficiency programs generated 3,157 MWh of energy savings, along with $212,934 of efficiency rebates issued to VPU customers for lighting retrofits and refrigeration control upgrades. VPU has also been a key partner throughout the customer’s electrification journey, providing incentives and expertise in the transition towards increased sustainability and GHG emission reduction. In particular, the utility issued electric vehicle and charger rebates for customers who switched to all-electric equipment. In July 2023, the utility also opened its first fast charging depot at 3805 S. Soto Street to support the growing number of electric vehicles on the road and help expand public charging infrastructure in the region. VPU customers who are in the cold storage and food processing business sectors continue to explore refrigeration control upgrades to achieve energy savings. The optimization of refrigeration controls often involves system hardware and software upgrades to maximize efficiency. To help support these complex energy efficiency projects, VPU works with a third-party engineering consultant to conduct the evaluation, measurement, and verification studies to confirm the validity of the savings generated. In addition, LED Lighting retrofits continue to account for a majority of energy savings through VPU's Customized Incentive Program. Customers with 24/7 operations and large warehouses can realize significant savings by upgrading from non-LED to LED lighting technology. . . Item 11 Page 19 of 78 xvi WATER FUND Introduction The water supply in Vernon is extremely important for the well-being of the public, economic growth, and environmental sustainability. The VPU Water Division has been working for over a century to ensure that this critical infrastructure is able to provide safe, dependable, and affordable water services to more than 800 customers. They distribute around 1.8 billion gallons of water annually. To accomplish its mission, the VPU Water Division consists of professionals who are dedicated to maintaining the water infrastructure, responding to any issues as soon as possible, and proactively planning for the future needs of the water system. Their knowledge and commitment guarantee that the water delivered meets the highest quality and service standards. By prioritizing reliability, sustainability, and affordability, the VPU Water Division team ensures that the Water Fund continues to succeed financially and operationally. Reliability With a network of 7 Wells, 2 booster plants, and reservoirs with a total capacity of 16.6 million gallons spanning the City, as well as a direct connection to the Metropolitan Water District, the VPU Water Division ensures a consistent supply of high-quality water even during periods of peak demand or drought. This commitment to reliability is further bolstered by a comprehensive water quality monitoring program that meets rigorous Federal and State regulations. The VPU Water Division pursues innovative technologies and best practices to ensure high-quality and reliable water service. This includes a bidirectional flushing program, valve exercising programs, prompt repair of leaks to save water loss, and a state-of-the-art real-time UV spectrometer water quality analyzer. . . Item 11 Page 20 of 78 xvii Capital Improvement Plan The Water Fund continues to implement major capital investments that began in FY 2019-20. The VPU Water Division has made significant capital investments in such projects as the construction of the first new groundwater well since 1989, Well 22; well and reservoir rehabilitation; and an entirely new Supervisory Control and Data Acquisition (SCADA) system along with electrical and fiber service upgrades to ensure the continued reliability of the Water system. This eight-year capital investment program represents a total investment of almost $30 million. . . Item 11 Page 21 of 78 xviii GAS FUND Introduction The VPU Gas Division is a reliable and cost-effective natural gas provider for businesses and residents in Vernon. They operate a state-of-the-art natural gas distribution and transmission system that serves over 125 customers. The Division is committed to providing its customers safe, reliable, and affordable natural gas service and has been nationally recognized for its strong safety record. The VPU Gas Division is staffed with highly qualified technicians who are available 24/7 to respond to emergencies. In addition to providing natural gas service, the VPU Gas Division offers various energy efficiency rebate programs and incentives to help customers reduce their GHG emissions. The services offered by the VPU Gas Division include: Natural Gas Service Provides natural gas services to residential, commercial, and industrial customers. Energy Efficiency Programs Offers a variety of energy efficiency programs and incentives to help customers reduce their GHG emissions. Leak Detection and Repair A team of experienced technicians who can detect and repair leaks immediately to ensure the continued reliability and safety of customers. Awards The VPU Gas Division has received the 2021 Safety Management Excellence Award and the Safety Award for calendar years 2018, 2020, 2021, and 2022 from the American Public Gas Association. Reliability As the only public utility in the state with a high-pressure natural gas transmission pipeline and one of the largest public gas systems by volume in the United States, the VPU Gas Division performs an annual assessment of its Integrity Management Plan and routinely surveys its gas system for compliance with regulatory requirements. Further, the VPU Gas Division annually conducts joint training with the Vernon . . Item 11 Page 22 of 78 xix Police Department and the Los Angeles County Fire Department to provide a continued overall understanding of the City’s natural gas system. Capital Projects During FY 2022-23, the VPU Gas Division updated its remote-access SCADA system by installing electronic recording devices (ERX) in each regulator station. This new system allows for live monitoring of transmission and distribution pressures, as well as monitoring of temperatures and alarms. Additionally, the high-pressure transmission pipeline system at the Seville lateral underwent a guided-wave ultrasonic test, and some gouges were discovered. The system was swiftly repaired, and the lateral was placed back online. Lastly, the VPU Gas Division conducted a systemwide inspection of all transmission and distribution valves. This critical project focused on maintenance to prevent valve leaks, as required by federal regulations. Gas Energy Efficiency Rebate The VPU Gas Division is dedicated to supporting its commercial and industrial gas customers in their efforts to decrease energy consumption and GHG emissions. To achieve this, the division provides an Energy Efficiency Rebate Program, which assists customers in saving money, improving energy efficiency, and reducing GHG emissions. The rebate covers a wide range of projects, such as upgrading to high- efficiency equipment, implementing energy-saving retrofits, and replacing customer fleets for lower or zero-emission vehicles and forklifts. . . Item 11 Page 23 of 78 xx FIBER OPTICS FUND Introduction The VPU Fiber Optics Division offers high-speed fiber optic internet service to residents and businesses in Vernon. The service is up to 5 times faster than AT&T and has a dedicated service line for businesses and residents. Fiber Internet includes 24-hour customer care technical support, consistent bi-directional high-speed connection, 99.9% up-time, and Dark Fiber connections for lease. Vernon customers have access to a high-quality and reliable internet service, which is constantly monitored in real-time to ensure a stable connection. The dedicated support team is available 24/7 to swiftly resolve any issues that may arise. Customers are assured reliable connectivity and significantly faster internet speeds and bandwidth due to fiber optic cables. Significant benefits of the VPU Fiber Optics Division services include: Smart Grid Infrastructure Support Fiber optic networks support real-time data collection, fault detection, and remote control of grid components, improving grid stability and reducing power outages. Diversification of Revenue Streams and Community Development Fiber-based internet services generate additional revenue for VPU and promote economic growth by attracting businesses to the City. Community Development and Economic Growth Access to high-speed internet is essential for economic development and attracting businesses to the City. The VPU Fiber Optic Division is vital in bridging the digital divide by providing fiber-based internet services to underserved areas. . . Item 11 Page 24 of 78 xxi Capital Projects In 2023, the VPU Fiber Optics Division underwent a major upgrade of the entire fiber equipment system. This upgrade included the installation of cutting-edge technology and advanced equipment, resulting in faster internet speeds and higher reliability for customers. The upgraded system has significantly improved the data transmission rate, reducing latency and increasing bandwidth. The fiber system upgrade was a strategic move by the VPU Fiber Optics Division to meet the growing demand for high-speed internet services. VPU’s fiber upgrade significantly increased capacity, with the system now capable of handling 100 GB and offering customers up to 1GB fiber circuit service. With this upgrade, the fiber system is now capable of providing seamless and uninterrupted internet services to more customers, even during peak usage hours. Moreover, the upgraded fiber system not only meets the current needs of customers but also secures the future growth of the fiber network. The new equipment and technology installed during the upgrade are designed to extend the life expectancy of the system and support future expansion and upgrades. The VPU Fiber Optics Division can confidently meet the increasing demand for high-speed internet services, ensuring the continued reliability and overall satisfaction of our customers. . . Item 11 Page 25 of 78 xxii This page intentionally left blank. . . Item 11 Page 26 of 78 2121 North California Blvd., Suite 290 Walnut Creek, California 94596 INDEPENDENT AUDITORS’ REPORT To the Honorable Mayor and Members of the City Council of the City of Vernon Vernon, California Report on the Audit of the Vernon Public Utilities Financial Statements Opinions We have audited the accompanying financial statements of the Water Enterprise Fund (the “Water Fund”) of the City of Vernon, California (the “City”), as of and for the year ended June 30, 2023, and the related notes to the financial statements as listed in the table of contents. In our opinion, the accompanying financial statements referred to above present fairly, in all material respects, the financial position of the Water Fund as of June 30, 2023, and the change in financial position, and cash flows thereof for the year then ended, in accordance with accounting principles generally accepted in the United States of America. Basis for Opinion We conducted our audit in accordance with auditing standards generally accepted in the United States of America (“GAAS”), and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States (“Government Auditing Standards”). Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant requirements relating to out audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Emphasis of Matter As discussed in Note 1 to the financial statements, the financial statements present only the Water Fund and do not purport to, and do not, present fairly the financial position of the City as of June 30, 2023, the changes in its financial position, or its cash flows for the year then ended, in accordance with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter. Responsibility of Management for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. . . Item 11 Page 27 of 78 To the Honorable Mayor and Members of the City Council of the City of Vernon Vernon, California Page 2 2 Auditors’ Responsibility for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with GAAS and Government Auditing Standards, we:  exercise professional judgment and maintain professional skepticism throughout the audit.  identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.  obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed.  evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit. Required Supplementary Information Accounting principles generally accepted in the United States of America require that the Management Discussion and Analysis, the Schedule of the Proportionate Share of the Net Pension Liability and Related Ratios, the Schedule of the Contributions – Pensions, the Schedule of the Proportionate Share of the Net Other Postemployment Benefits Liability and Related Ratios, and the Schedule of the Contributions – Other Postemployment Benefits be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by Government Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the Required Supplementary Information in accordance with GAAS, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. . . Item 11 Page 28 of 78 To the Honorable Mayor and Members of the City Council of the City of Vernon Vernon, California Page 3 3 Other Information Management is responsible for the other information included in this annual report. The other information comprises the Introductory Section but does not include the basic financial statements and our auditors’ report thereon. Our opinion on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated February 8, 2024 on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance. Santa Ana, California February 8, 2024 . . Item 11 Page 29 of 78 4 This page intentionally left blank. . . Item 11 Page 30 of 78 City of Vernon, California Water Fund Management’s Discussion and Analysis (Unaudited) Year ended June 30, 2023 5 The management of the Water Fund of the City of Vernon (“the City”) offers the following overview and analysis of the basic financial statements for the fiscal year ending June 30, 2023. Management encourages readers to utilize information in the Management’s Discussion and Analysis (“MD&A”) in conjunction with the accompanying basic financial statements. OVERVIEW OF BASIC FINANCIAL STATEMENTS The MD&A is intended to serve as an introduction to the Water Fund’s basic financial statements. Included as part of the financial statements are three separate statements. The statement of net position presents information on the Water Fund’s total assets and deferred outflows of resources and total liabilities and deferred inflows of resources, with the difference between the two reported as net position. The statement of revenues, expenses, and changes in net position presents information showing how the Water Fund's net position changed during the most recent fiscal year. Financial results are recorded using the accrual basis of accounting. Under this method, all changes in net position are reported as soon as the underlying events occur, regardless of the timing of cash flows. Thus, revenues and expenses reported in this statement for some items may affect cash flows in a future fiscal period (examples include billed but uncollected revenues and employee earned but unused vacation leave). The statement of cash flows reports cash receipts, cash payments, and net changes in cash and cash equivalents from operations, noncapital financing, capital and related financing, and investing activities. The notes to the financial statements provide additional information essential to understand the data provided in the financial statements fully. . . Item 11 Page 31 of 78 City of Vernon, California Water Fund Management’s Discussion and Analysis (Unaudited)(Continued) Year ended June 30, 2023 6 FINANCIAL HIGHLIGHTS Net Position The table below summarizes the Water Fund’s net position as of the current fiscal year, which ended June 30, 2023, and the prior fiscal year, which ended June 30, 2022. The current year’s summary details can be found on pages 18-19 of this report. City of Vernon Water Fund Net Position June 30, 2023 and 2022 2023 2022 $ Variance Current and other assets $ 20,467,062 $ 19,535,358 $ 931,704 Restricted assets 2,148,689 7,358,059 (5,209,370) Due from other funds 18,247 202,798 (184,551) Capital assets 22,413,711 16,268,011 6,145,700 Total assets 45,047,709 43,364,226 1,683,483 Deferred Outflows of Resources 1,969,039 1,031,044 937,995 Current liabilities 2,334,628 2,180,835 153,793 Long term liabilities 20,688,409 19,398,653 1,289,756 Total liabilities 23,023,037 21,579,488 1,443,549 405,979 2,062,003 (1,656,024) Net investment in Capital Assets 8,238,109 6,869,387 1,368,722 Restricted for debt 160,440 - 160,440 Unrestricted (deficit) 15,189,183 13,884,392 1,304,791 Total net position $ 23,587,732 $ 20,753,779 $ 2,833,953 Assets Liabilities Net Position Deferred Inflows of Resources The assets and deferred outflows of resources of the Water Fund exceeded its liabilities and deferred inflows of resources at the close of the most recent fiscal year by $23.6 million (net position). The category of the Water Fund’s net position with the largest balance totaling $15.2 million represents the unrestricted net position that is expected to be used for future projects or other purposes. The remaining category of net position, totaling $8.2 million, represents resources that are invested in capital assets, net of related debt. . . Item 11 Page 32 of 78 City of Vernon, California Water Fund Management’s Discussion and Analysis (Unaudited)(Continued) Year ended June 30, 2023 7 FINANCIAL HIGHLIGHTS (Continued) Activities, Net Position  Current assets increased by $931,704 from the prior year due to increases in cash and investments by $978,986 and a decrease in accounts receivable by $198,421.  Restricted assets decreased by $5.2 million in 2023 as VPU continue to draw down on the Water System Revenue Bonds, 2020 Taxable Series A to fund capital projects.  Net Capital assets increased $6.1 million from the prior year due to additional water plant investment. (See Note 5)  Current liabilities decreased by $153,793 from the prior year, primarily due to a decrease in Accounts Payable of $135,694.  The net investments in capital assets and net of related debt increased by $1.4 million, and the unrestricted (deficit) increased by $1.3 million, which resulted in an increase in the total net position by $2.8 million. . . Item 11 Page 33 of 78 City of Vernon, California Water Fund Management’s Discussion and Analysis (Unaudited)(Continued) Year ended June 30, 2023 8 FINANCIAL HIGHLIGHTS (Continued) Changes in Net Position The table below summarizes the Water Fund’s changes in net position over the current and prior fiscal years. The details of the current year’s changes in net position can be found on page 21 of this report. City of Vernon Water Fund Changes in Net Position June 30, 2023 and 2022 2023 2022 $ Variance Charges for services $ 9,844,537 $ 10,845,652 $ (1,001,115) Cost of sales 6,226,053 7,743,964 (1,517,911) Depreciation 575,512 500,102 75,410 Total operating expenses 6,801,565 8,244,066 (1,442,501) Operating income 3,042,972 2,601,586 441,386 Intergovernmental - 194,487 (194,487) Investment income 327,529 11,991 315,538 Interest expense (551,437) (563,865) 12,428 Gain/Loss on disposition of assets 14,889 (409,841) 424,730 Net nonoperating revenue (expenses) (209,019) (767,258) 558,239 2,833,953 1,834,328 999,625 20,753,779 18,919,451 1,834,328 $ 23,587,732 $ 20,753,779 $ 2,833,953 Charge in net position Net position - beginning of year Net position - end of year Operating Revenues Operating Expenses Nonoperating revenues (expenses) The Water Fund’s change in net position for FY 2022-23 was $2,833,953, primarily due to an operating income of $3,042,972 and lower total nonoperating revenues (expenses) of ($209,019) when compared to the prior year. Although operating revenues decreased by $1,001,115 compared to the prior year due to the loss of a major customer, it was more than offset by lower operating expenses of $1,517,911. . . Item 11 Page 34 of 78 City of Vernon, California Water Fund Management’s Discussion and Analysis (Unaudited)(Continued) Year ended June 30, 2023 9 CAPITAL ASSET AND DEBT ADMINISTRATION CAPITAL ASSETS The Water Fund’s investment in capital assets as of June 30, 2023 amounted to $6.1 million (net of accumulated depreciation). This investment in capital assets includes land, construction in progress, and utility system improvements. Additional information on the Water Fund's capital assets can be found in Note 5 of this report. OUTSTANDING LONG-TERM DEBT As of June 30, 2023, the following Water Fund debt remains outstanding:  $14,350,000 City of Vernon Water System Revenue Bonds, 2020 Taxable Series A  $1,081,395 City of Vernon agreement with the Water Replenishment District of Southern California The City of Vernon Water System Revenue Bonds 2020 Taxable Series A were issued to provide funds to (i) finance the acquisition and construction of certain capital improvements to the Water System of the City, (ii) purchase a municipal bond debt service reserve insurance policy for deposit in the Reserve Fund in satisfaction of the Reserve Requirement, and (iii) to pay costs of issuance of the 2020 Bonds. As of June 30, 2023, S&P's rating on Water System Revenue Bonds is A-/Stable. Additional information on the Water Fund's long-term debt can be found in Note 6 of this report. ECONOMIC FACTORS AND NEW YEAR’S BUDGET AND RATES These factors were considered in preparing the Water Fund’s FY 2023-24 operating and capital budgets.  VPU is committed to providing dependable, high-quality electric, water, natural gas, and fiber services at the lowest competitive rates and the highest standards for reliability.  VPU continues to respond to inflation and supply chain issues, including higher chemical and construction costs, to maintain infrastructure investment, and to continue to provide exceptionally reliable service.  The final phase of the multi-year water rate adjustment plan approved by the City Council was implemented in January 2024. REQUESTS FOR INFORMATION This report is designed to provide an overview of the Water Fund's FY 2022-23 financial results. Questions concerning the fund’s financial results can be addressed to the Finance Department, City of Vernon, 4305 Santa Fe Avenue, Vernon, California, 90058. . . Item 11 Page 35 of 78 10 This page intentionally left blank. . . Item 11 Page 36 of 78 FINANCIAL STATEMENTS 11 . . Item 11 Page 37 of 78 ASSETS Current assets: Cash and investments 17,994,763$ Accounts receivable, net 943,517 Interest receivable 8,928 Accrued unbilled revenue 1,515,524 Due from other funds 18,247 Prepaid items 4,330 Total current assets 20,485,309 Noncurrent assets: Restricted cash and investments 2,148,689 Capital assets: Capital assets, not being depreciated 11,111,271 Capital assets, being depreciated, net 11,302,440 Total capital assets 22,413,711 Total noncurrent assets 24,562,400 Total assets 45,047,709 DEFERRED OUTFLOW OF RESOURCES Pension related items 1,821,009 Other postemployment benefits related items 148,030 Total deferred outflow of resources 1,969,039$ (Continued) Water Enterprise Fund of the City of Vernon Statement of Net Position June 30, 2023 See accompanying Notes to the Basic Financial Statements. 12 . . Item 11 Page 38 of 78 LIABILITIES Current liabilities: Accounts payable 1,279,568$ Accrued wages and benefits 31,872 Accrued interest payable 237,281 Due to other funds 110,329 Customer deposits payable 236,888 Compensated absences, due within one year 34,155 Bonds payable, due within one year 265,000 Note payable, due within one year 139,535 Total current liabilities 2,334,628 Noncurrent liabilities: Compensated absences, due in more than one year 68,311 Bonds, due in more than one year 14,601,753 Note payable, due in more than one year 941,860 Net pension liability 4,598,715 Net other postemployment benefits liability 477,770 Total noncurrent liabilities 20,688,409 Total liabilities 23,023,037 DEFERRED INFLOWS OF RESOURCES Pension related items 230,161 Other postemployment benefits related items 175,818 Total deferred inflows of resources 405,979 NET POSITION Net investment in capital assets 8,238,110 Restricted for debt service 160,440 Unrestricted 15,189,182 Total net position 23,587,732$ (Concluded) Water Enterprise Fund of the City of Vernon Statement of Net Position (Continued) June 30, 2023 See accompanying Notes to the Basic Financial Statements. 13 . . Item 11 Page 39 of 78 This page intentionally left blank. 14 . . Item 11 Page 40 of 78 OPERATING REVENUES: Charges for services 9,844,537$ Total operating revenues 9,844,537 OPERATING EXPENSES: Cost of sales 6,226,053 Depreciation expense 575,512 Total operating expenses 6,801,565 OPERATING INCOME 3,042,972 NONOPERATING REVENUES (EXPENSES): Investment income 327,529 Interest expense (551,437) Gain on disposal of assets 14,889 Total nonoperating revenues (expenses)(209,019) CHANGE IN NET POSITION 2,833,953 NET POSITION: Beginning of year 20,753,779 End of year 23,587,732$ Water Enterprise Fund of the Citv of Vernon Statement of Revenues, Expenses, and Changes in Net Position For the Year Ended June 30, 2023 See accompanying Notes to the Basic Financial Statements. 15 . . Item 11 Page 41 of 78 CASH FLOWS FROM OPERATING ACTIVITIES: Cash receipts from customers and users 9,900,629$ Cash paid to suppliers for goods and services (5,024,168) Cash paid to employees for services (2,053,190) Net cash provided by operating activities 2,823,271 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Receipt from other funds 313,127 Payment to other funds (18,247) Net cash provided by noncapital financing activities 294,880 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Acquisition of capital assets (6,721,212) Proceed from sale of capital assets 14,889 Principal paid on long-term debt (389,535) Interest paid on long-term debt (575,726) Net cash (used in) capital and related financing activities (7,671,584) CASH FLOWS FROM INVESTING ACTIVITIES: Interest received 323,049 Net cash provided by investing activities 323,049 Net (decrease) in cash and cash equivalents (4,230,384) CASH AND CASH EQUIVALENTS: Beginning of year 24,373,836 End of year 20,143,452$ CASH AND CASH EQUIVALENTS: Cash and investment 17,994,763$ Restricted cash and investment 2,148,689 Total cash and cash equivalents 20,143,452$ (Continued) Water Enterprise Fund of the City of Vernon Statement of Cash Flows For the Year Ended June 30, 2023 See accompanying Notes to the Basic Financial Statements. 16 . . Item 11 Page 42 of 78 OPERATING INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES: Operating income 3,042,972$ Adjustments to reconcile operating income to net cash provided by operating activities: Depreciation 575,512 Change in assets and liabilities: (Increase) decrease in accounts receivable 198,421 (Increase) decrease in accrued unbilled revenue (142,329) (Increase) decrease in inventories and prepaid items (4,330) (Increase) decrease in deferred outflows of resources related to pension (903,730) (Increase) decrease in deferred outflows of resources related to OPEB (34,265) Increase (decrease) in accounts payable (135,694) Increase (decrease) in accrued wages and benefits (12,423) Increase (decrease) in deposits payable 175,704 Increase (decrease) in compensated absences 18,258 Increase (decrease) in net pension liabilities 1,752,772 Increase (decrease) in OPEB liabilities (51,573) Increase (decrease) in deferred inflows of resources related to pension (1,560,735) Increase (decrease) in deferred inflows of resources related to OPEB (95,289) Total adjustment (219,701) Net cash provided by operating activities 2,823,271$ (Concluded) Statement of Cash Flows (Continued) Water Enterprise Fund of the City of Vernon For the Year Ended June 30, 2023 See accompanying Notes to the Basic Financial Statements. 17 . . Item 11 Page 43 of 78 This page intentionally left blank. 18 . . Item 11 Page 44 of 78 19 NOTES TO THE BASIC FINANCIAL STATEMENTS . . Item 11 Page 45 of 78 20 This page intentionally left blank. . . Item 11 Page 46 of 78 Water Enterprise Fund of the City of Vernon Index to the Notes to the Basic Financial Statements For the Year Ended June 30, 2023 21 Note 1 – Summary of Significant Accounting Policies ....................................................................................... 23 A. Basis of Accounting and Measurement Focus ..................................................................................... 23 B. Pooled Cash ......................................................................................................................................... 23 C. Cash, Cash Equivalents and Investments ............................................................................................. 23 D. Interfund Transactions ......................................................................................................................... 24 E. Accounts Receivables. ......................................................................................................................... 24 F. Prepaid Items ....................................................................................................................................... 24 G. Capital Assets ....................................................................................................................................... 24 H. Deferred Outflows and Inflows of Resources ...................................................................................... 24 I. Compensated Absences ........................................................................................................................ 24 J. Long-Term Obligations ........................................................................................................................ 25 K. Pensions ............................................................................................................................................... 25 L. Other Postemployment Benefits (“OPEB”) ......................................................................................... 25 M. Net Position .......................................................................................................................................... 26 N. Use of Estimates................................................................................................................................... 26 Note 2 – Cash and Cash Equivalents ................................................................................................................... 26 A. Equity in the Cash Pool of the City of Vernon .................................................................................... 27 B. Investments .......................................................................................................................................... 27 C. Fair Value Measurement ...................................................................................................................... 27 D. Risk Disclosures ................................................................................................................................... 27 Note 3 – Accounts Receivable ............................................................................................................................... 28 Note 4 – Interfund Transactions .......................................................................................................................... 29 A. Due From/To Other City Funds ........................................................................................................... 29 Note 5 – Capital Assets .......................................................................................................................................... 29 Note 6 – Long-Term Debt ..................................................................................................................................... 29 Note 7 – Risk Management ................................................................................................................................... 31 Note 8 – Pension Plan ............................................................................................................................................ 32 A. General Information about the Pension Plans ...................................................................................... 32 B. Net Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions ........................................................................... 34 Note 9 – Other Postemployment Benefits (“OPEB”) ......................................................................................... 37 A. General Information about the OPEB Plan .......................................................................................... 37 B. Net OPEB Liabilities, OPEB Expenses, and Deferred Outflows/Inflows of Resources Related to OPEB ............................................................................... 38 . . Item 11 Page 47 of 78 22 This page intentionally left blank. . . Item 11 Page 48 of 78 Water Enterprise Fund of the City of Vernon Notes to the Basic Financial Statements For the Year Ended June 30, 2023 23 Note 1 – Summary of Significant Accounting Policies The accompanying financial statements present only the Water Fund (“Water Fund”) of the City of Vernon, California (“the City”), and do not present fairly the financial position and results of the operations of the City. The Water Fund accounts for the independent operations and the maintenance of the City’s water utility. The Water Fund is administered as an independent fiscal and accounting entity with a self-balancing set of accounts recording resources, related liabilities, obligations, reserves, and equities, segregated for the purpose of carrying out specific activities or attaining certain objectives in accordance with special regulations, restrictions, or limitations. For additional information regarding the City of Vernon, refer to the City’s annual Financial report. The financial statements of the Water Fund have been prepared in conformity with the U.S. generally accepted accounting principles (“U.S. GAAP”). The Governmental Accounting Standards Board (“GASB”) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The Water Fund’s significant accounting policies are described below. A. Basis of Accounting and Measurement Focus The Water Fund’s financial statements are reported using the “economic resources” measurement focus and the accrual basis of accounting. Accordingly, all assets and liabilities (whether current or noncurrent) are included on the Statement of Net Position. The Statement of Revenues, Expenses and Changes in Net Position presents increases (revenues) and decreases (expenses) in total net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred. The Water Fund distinguishes operating revenues and expenses from nonoperating items. Operating revenues, such as charges for services, result from exchange transactions associated with the sale of electricity and gas. Exchange transactions are those in which each party receives and gives up essentially equal values. Nonoperating revenues, such as subsidies and investment earnings, result from nonexchange transactions or ancillary activities. Operating expenses include the cost of sales and services, administrative expenses and depreciation on capital assets. All expenses not meeting this definition are reported as nonoperating expenses. B. Pooled Cash Part of the Water Fund’s operating cash balance is pooled with other City funds for deposit purposes. The share of each fund in the pooled cash account is recorded in each of the funds’ book of accounts, and interest income is apportioned to the participating funds based on the relationship of their average monthly balances to the total of the pooled cash. C. Cash, Cash Equivalents, and Investments For purposes of the statement of cash flows, the Water Fund considers all highly liquid investments (including restricted cash and investments) with an original maturity of three months or less when purchased to be cash equivalents. Investment transactions are recorded on the settlement date. Investments in nonparticipating interest- earning investment contracts are reported at cost and all other investments are reported at fair value. . . Item 11 Page 49 of 78 Water Enterprise Fund of the City of Vernon Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023 24 Note 1 – Summary of Significant Accounting Policies D. Interfund Transactions Outstanding short-term borrowing between funds are reported as “due from/to other funds City funds”. Long-term interfund loans are classified as “advances to/from other City funds” on the statement of net position. E. Accounts Receivables Accounts receivables are shown net of an allowance for uncollectible accounts. Allowances for uncollectible accounts were $48,256 as of June 30, 2023. Utility customers are billed monthly. The estimated value of services provided, but unbilled at year-end has been included in the accompanying statement of net position. F. Prepaid Items Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both the government-wide and fund financial statements by using purchase method. G. Capital Assets Capital assets are recorded at cost where historical records are available and at an estimated original cost where no historical records exist. Donated capital assets are valued at their acquisition value. Capital assets include intangible assets with indefinite lives and public domain (infrastructure) general capital assets consisting of certain improvements including roads and bridges, sidewalks, curbs and gutters, and traffic light systems. The capitalization threshold for all capital assets is $5,000. Capital assets used in operations are depreciated using the straight-line method over their estimated useful lives in the government-wide and proprietary funds statements. Capital assets used in operations are depreciated over their estimated useful lives using the straight-line method. Assets Years Utility Plant 3-50 Maintenance and repairs are charged to operations when incurred. Betterments and major improvements, which significantly increase values, change capacities or extend useful lives, are capitalized. Upon sale or retirement of capital assets, the cost and related accumulated depreciation are removed from the respective accounts and any resulting gain or loss is included in the statement of revenues, expenses, and changes in net position. H. Deferred Outflows and Inflows of Resources The statement of net position reports separate sections for deferred outflows of resources and deferred inflows of resources, when applicable. Deferred Outflows of Resources represents consumption of net assets that applies to future periods. Deferred Inflows of Resources represents acquisition of net assets that applies to future periods. I. Compensated Absences Accumulated vacation is accrued when incurred. Upon termination of employment, the Water Fund will pay the employee all accumulated vacation leave at 100% of the employee’s base hourly rate. . . Item 11 Page 50 of 78 Water Enterprise Fund of the City of Vernon Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023 25 Note 1 – Summary of Significant Accounting Policies (Continued) J. Long-Term Obligations Long-term debt and other long-term obligations are reported as liabilities in the appropriate activities. Bonds payable are reported net of the applicable bond premium or discount. Debt issuance costs except for any portion related to prepaid insurance were recognized as expense in the period incurred. Premium or discount not considered as part of the reacquisition price was amortized over the life of the bond. K. Pensions For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the plans and additions to/deductions from the plans’ fiduciary net position have been determined on the same basis as they are reported by the plans. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with benefit terms. Investments are reported at fair value. The following timeframes are used for pension reporting: Valuation Date June 30, 2021 Measurement Date June 30, 2022 Measurement Period July 1, 2021 to June 30, 2022 Gains and losses related to changes in total pension liability and fiduciary net position are recognized in pension expense systematically over time. The first amortized amounts are recognized in pension expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to pensions and are to be recognized in future pension expense. The amortization period differs depending on the source of the gain or loss. The difference between projected and actual earnings is amortized straight-line over 5 years. All other amounts are amortized straight-line over the average expected remaining service lives of all members that are provided with benefits (active, inactive, and retired) as of the beginning of the measurement period. L. Other Postemployment Benefits (“OPEB”) For the purpose of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the City’s OPEB Plan and additions to/deductions from the OPEB Plan’s fiduciary net position have been determined on the same basis as they are reported by the Plan. For this purpose, the OPEB Plan recognizes benefit payments when due and payable in accordance with the benefit terms. Investments are reported at fair value, except for money market investments, which are reported at amortized cost. The following timeframes are reported OPEB reporting: Valuation Date June 30, 2022 Measurement Date June 30, 2022 Measurement Period July 1, 2021 to June 30, 2022 Gains and losses related to changes in total OPEB liability and fiduciary net position are recognized in OPEB expense systematically over time. The first amortized amounts are recognized in OPEB expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to OPEB and are to be recognized in future OPEB expense. . . Item 11 Page 51 of 78 Water Enterprise Fund of the City of Vernon Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023 26 Note 1 – Summary of Significant Accounting Policies (Continued) L. Other Postemployment Benefits (“OPEB”) (Continued) The amortization period differs depending on the sources of gain or loss. The difference between projected and actual earnings is amortized on a straight-line basis over 5 years. All other amounts are amortized on a straight-line basis over the average expected remaining service lives of all members that are provided with benefits (active, inactive, and retired) at the beginning of the measurement period. M. Net Position The Water Fund financial statements utilize a net position presentation. Net position is classified as follows. Net Investment in Capital Assets – This component of net position consists of capital assets, net of accumulated depreciation, reduced by the outstanding balances of retention payable and debt that are attributable to the acquisition, construction, or improvement of those assets, and related deferred outflows and inflows of resources, net of unspent debt proceeds. Restricted – This component of net position consists of restricted assets reduced by liabilities and deferred inflows of resources related to those assets. Unrestricted – This component of net position is the amount of the assets, deferred outflows of resources, liabilities, and deferred inflows of resources that are not included in the determination of net investment in capital assets or the restricted component of net position. When expenses are incurred for purposes for which both restricted and unrestricted components of net position are available, the City’s policy is to apply the restricted component of net position first, then the unrestricted component of net position as needed. N. Use of Estimates The preparation of basic financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. Note 2 – Cash and Cash Equivalents The Water Fund has the following cash and investments at June 30, 2023: Cash and investments 17,994,763$ Restricted cash and investments 2,148,689 Total cash and investments 20,143,452$ The Water Fund cash and investments at June 30, 2023, in more detail: Equity in pooled cash 3,539,326$ Deposits with financial institutions 16,540 Investments 16,587,586 Total cash and investments 20,143,452$ . . Item 11 Page 52 of 78 Water Enterprise Fund of the City of Vernon Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023 27 Note 2 – Cash and Cash Equivalents (Continued) A. Equity in the Cash Pool of the City of Vernon The Water Fund has equity in the cash pool managed by the City. The Water Fund is a voluntary participant in that pool and the pool is governed by and under the regulatory oversight of the Investment Policy adopted by the City Council of the City. The Water Fund has not adopted an investment policy separate from that of the City. The amount of the Water Fund’s cash in this pool is reported in the accompanying financial statements based upon the Water Fund’s pro rata share of the amount calculated by the City. The balance available for withdrawal is based on the accounting records maintained by the City. B. Investments Under the provisions of the City’s investment policy, and in accordance with California Government Code, the following investments are authorized: Maximum Maximum Maximum Percentage Investments in Minimum Authorized Investment Type Maturity Allowed*One Issuer Rating United States Treasury Bills, Bonds and Notes 5 Years None None None State and Local Agency Bonds 5 Years None None None United States Government Sponsored Agency Securities 5 Years None None None Certain Asset-Backed Securities 5 Years 20%None AA Negotiable Certificates of Deposit 5 Years 30%None None Banker's Acceptance Notes 180 days 40%30%None Commercial Paper 270 days 25% 10% of the issuer outstanding paper A Repurchasement Agreement 1 year None None None Reverse Repurchase Agreement 92 Days 20%None None Medium-Term Notes 5 Years 30%None A Mutual Funds Incesting in Eligible Securities N/A 20%10%AAA Money Market Mutual Funds N/A 20%10%AAA Mortgage-Backed Pass-Through Securities 5 Years 20%None AA State Administered Pool Investment N/A None $75 Million None N/A - Not Applicable *Excluding amounts held by bond trustee that are not subject to California Government Code restrictions. C. Fair Value Measurement At June 30, 2023, investments are reported at fair value. The following table presents the fair value measurements of investments on a recurring basis and the levels with GASB 72 fair value hierarchy in which the fair value measurements fall at June 30, 2023: Investment Type Uncategorized Money Market Funds 14,438,897$ Investment with fiscal agent: Money Market Funds 2,148,689 Total 16,587,586$ D. Risk Disclosures Interest Rate Risk - As a means of limiting its exposure to fair value losses arising from rising interest rates, the City’s investment policy limits investments to a maximum maturity of five years. . . Item 11 Page 53 of 78 Water Enterprise Fund of the City of Vernon Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023 28 Note 2 – Cash and Cash Equivalents (Continued) D. Risk Disclosures (Continued) At June 30, 2023, the Water Fund had the following investment maturities: Remaining Maturity 1 Year Investment Type or Less Money Market Funds 14,438,897$ Investment with fiscal agent: Money Market Funds 2,148,689 Total 16,587,586$ Credit Risk – Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the minimum rating required by (where applicable) the California Government Code, the City’s investment policy, or debt agreements, and the actual rating, by Standard and Poor’s and Moody’s at June 30, 2023 for each investment type: Fair Value Minimum at Legal Investment Type June 30, 2023 Rating AAA Money Market Funds 14,438,897 AAA 14,438,897 Investment with fiscal agent: Money Market Funds 2,148,689 AAA 2,148,689 Total 16,587,586$ 16,587,586$ Concentration of Credit Risk – The investment policy of the City contains no limitations on the amount that can be invested in any one issuer excluding a 10% limitation on commercial papers, mutual funds, and money market mutual funds and a 30% limitation on banker’ acceptances. The City’s investment policy places no limit on the amount of debt proceeds held by a bond trustee that the trustee may invest in one issuer that is governed by the provisions of debt agreements of the City, rather than the general provisions of the California Government Code or the City’s investment policy. Custodial Credit Risk – The Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover deposits or will not be able to recover collateral securities that are in the possession of a third party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty to a transaction, a government will not be able to recover the value of investment or collateral securities that are in the possession of the third party. At June 30, 2023, none of the City’s deposits or investments were exposed to custodial credit risk. Note 3 – Accounts Receivable The Water Fund’s accounts receivable at June 30, 2023 are as follows: Accounts Receivabe 991,773$ Less: Allowance for Uncollectible Accounts (48,256) Total accounts Receivable, Net 943,517$ . . Item 11 Page 54 of 78 Water Enterprise Fund of the City of Vernon Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023 29 Note 4 – Interfund Transactions A. Due From/To Other City Funds At June 30, 2023, the Water Fund was due $18,247 from the Electric Fund. At June 30, 2023, the Water Fund had $110,329 due to the General Fund of the City. The interfund balances resulted from borrowing of cash for temporary purposes. All balances are expected to be reimbursed within the subsequent year. Note 5 – Capital Assets A summary of changes in the capital assets for the Water Fund for the year ended June 30, 2023 is as follows: Balance Balance July 1, 2022 Additions Deletions Transfers June 30, 2023 Capital assets, not being depreciated: Water Utility - Water 467,640$ -$ -$ -$ 467,640$ Water Utility - Construction in Progress 6,914,299 5,933,375 - (2,204,043) 10,643,631 Total capital assets, not being depreciated 7,381,939 5,933,375 - (2,204,043) 11,111,271 Capital assets, being depreciated: Water Utility Plant 23,730,271 787,837 (14,782) 2,204,043 26,707,369 Total capital assets, being depreciated 23,730,271 787,837 (14,782) 2,204,043 26,707,369 Less accumulated depreciation for: Water Utility Plant (14,844,199) (575,512) 14,782 - (15,404,929) Total accumulated depreciation (14,844,199) (575,512) 14,782 - (15,404,929) Total capital assets, being depreciated, net 8,886,072 212,325 - 2,204,043 11,302,440 Total capital assets, net 16,268,011$ 6,145,700$ -$ -$ 22,413,711$ The Water Fund’s total depreciation expense for the year was $575,512. Note 6 – Long-Term Debt A summary of changes in long-term debt for the Water Fund for the year ended Jun 30, 2023 is as follows: Balance Balance Due within Due in More July 1, 2022 Additions Deletions June 30, 2023 One Year Than One Year Public Offering: Revenue Bonds: 2020 Taxable Revenue Bonds - Series A - Water 14,600,000$ -$ (250,000)$ 14,350,000$ 265,000$ 14,085,000$ Unamortized Premiums/(Discounts): 2020 Taxable Revenue Bonds - Series A - Water 535,833 - (19,080) 516,753 - 516,753 Total Public Offering 15,135,833 - (269,080) 14,866,753 265,000 14,601,753 Direct Borrowing: Water Replenishment District Note Payable 1,220,930 - (139,535) 1,081,395 139,535 941,860 Total Direct Borrowing 1,220,930 - (139,535) 1,081,395 139,535 941,860 Compensated absences 84,208 121,522 (103,264) 102,466 34,155 68,311 Total business-Type activities 16,440,971$ 121,522$ (511,879)$ 16,050,614$ 438,690$ 15,611,924$ . . Item 11 Page 55 of 78 Water Enterprise Fund of the City of Vernon Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023 30 Note 6 – Long-Term Debt (Continued) $14,840,000 Water System Revenue Bonds (2020 Series A) The bonds are special obligation bonds which are secured by an irrevocable pledge of water revenues payable to bondholders. Under the Indenture of Trust dated May 6, 2020, interest and principal on the bonds are payable from Net Revenues (or Revenues less Operation and Maintenance Expenses) and/or amounts in the Water Enterprise (as those terms are defined in the Indenture of Trust). The total unpaid balance as of June 30, 2023, was $14,350,000. The future annual debt service requirements for the Taxable Revenue Bonds, Series 2020A-T are as followed: Year Ending June 30, Principal Interest Total 2024 265,000$ 562,850$ 827,850$ 2025 275,000 549,350 824,350 2026 - 542,475 542,475 2027 - 542,475 542,475 2028 - 542,475 542,475 2029-2033 1,985,000 2,464,250 4,449,250 2034-2038 2,180,000 1,943,625 4,123,625 2039-2043 2,680,000 1,445,000 4,125,000 2044-2048 3,180,000 940,625 4,120,625 2049-2051 3,785,000 331,188 4,116,188 Total 14,350,000$ 9,864,313$ 24,214,313$ Water Replenishment District Note Payable – Direct Borrowing In May 2019, the City entered into an agreement with Water Replenishment District of Southern California (WRD) for assistance with the construction of a new groundwater well or rehabilitation of an existing groundwater well. The promissory note is unsecured and has no interest basis for an amount not to exceed $1,500,000. As of June 30, 2023, WRD has disbursed all of the funds under the agreement to the City. The note is payable in quarterly principal payments commencing September 1, 2020, in an amount which, together with all quarterly payments, will be sufficient to fully amortize the principal balance of the note by the maturity date of April 1, 2031. The total unpaid balance as of June 30, 2023, was $1,081,395. Upon an event of default, WRD may declare any or all of the outstanding and unpaid principal balance immediately due and payable, without presentment, demand, protest, notice of protest, notice of acceleration or of intention to accelerate or any other notice, declaration or act of any kind, all of which are hereby expressly waived by the City. The future annual debt service requirements are as follows: Year Ending June 30, Principal Interest Total 2024 139,535$ -$ 139,535$ 2025 139,535 - 139,535 2026 139,535 - 139,535 2027 139,535 - 139,535 2028 139,535 - 139,535 2029-2031 383,720 - 383,720 Total 1,081,395$ -$ 1,081,395$ . . Item 11 Page 56 of 78 Water Enterprise Fund of the City of Vernon Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023 31 Note 6 – Long-Term Debt (Continued) Compensated Absences The balance outstanding at June 30, 2023, was $102,466. Right to Accelerate Upon Default Notwithstanding anything contrary in the indenture or in the bonds, upon the occurrence of an event of default, the Trustee may, with the consent of each credit provider whose consent is required by a supplemental indenture or a credit support agreement, and shall, at the direction of the owners of a majority in principal amount of outstanding bonds (other than bonds owned by or on behalf of the City) by written notice to the City, declare the principal of the outstanding bonds and the interest thereon to be immediately due and payable, whereupon such principal and interest shall, without further action, become and be immediately due and payable. Credit Ratings As of June 30, 2023, the ratings on Water System Revenue Bonds were A- stable by S&P and not rated by Moody’s. Note 7 – Risk Management The Water Fund is in the City’s self-insurance program as part of its policy to self-insure certain levels of risk within certain separate lines of coverage to maximize cost savings. The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets, errors, and omissions; injuries to employees, and natural disasters. The City utilizes insurance policy(s) to transfer these risks. Each policy has either self-insured retention or deductible, which are parts of the City’s Risk Financing Program. These expenses are paid on a cash basis as they are incurred. There have been no significant settlements or deductions in insurance coverage during the past three fiscal years. Starting in Fiscal 2010, the City chose to establish Risk Financing in the General Fund, whereby assets are set aside for claim-litigation settlements associated with the abovementioned risks up to their self-insured retentions or policy deductibles. Athens Administrators Inc. is the Third-Party Administrator for the City’s workers’ compensation program and they provide basic services for general liability claims and litigation. . . Item 11 Page 57 of 78 Water Enterprise Fund of the City of Vernon Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023 32 Note 7 – Risk Management (Continued) The insurance limits for the fiscal year 2023 are as follows: Insurance Type Program Limits Deductible/SIR (Self-Insured Retention) 1st Excess Liability $5,000,000 $2 Million $3 Million Law Enforcement 2nd Excess Liability $5,000,000 $5,000,000 3rd Excess Liability $5,000,000 $10,000,000 4th Excess Liability $5,000,000 $15,000,000 Excess Workers Compensation $50,000,000 $1,000,000 $1.5 Million Presumptive Loss Property - Power Generating $100,000,000 Various Property - Residential $7,950,653 $2,500 Property - Municipal $59,614,930 $25,000 Commercial Propert/EQ and F L $50,000,000 - Government Crime $1,000,000 $25,000 Premise Pollution/Environmental Impairment $5,000,000 $25,000 $5,000,000 per Claim $50,000 Utility Locs. $100,000 Natural Gas Pipeline Cyber Liability $5,000,000 $100,000 Auto Physical Damage $10,000,000 $5,000 Residential Property Insurance $7,950,653 $2,500 Terrorism $100 Million Property Terrorism $0 $5 Million Terrorism Liabilty $5 Million Active Shooter Special Events $2,000,000 $1,000,000 Each Occurrence Note 8 – Pension Plan A. General Information about the Pension Plans Plan Descriptions The City contribution to the California Public Employees Retirement System (“CalPERS”), an agent multiple- employer defined benefit pension plan for miscellaneous employees and a cost-sharing multiple-employer defined benefit plan for safety employees. CalPERS acts as a common investment and administrative agent for participating public entities within the State of California. Benefit provisions and all other requirements are established by state statute and City ordinance. A full description of the pension plan regarding number of employees covered, benefit provisions, assumptions (for funding, but not accounting purposes), and membership information are listed in the June 30, 2021 Annual Actuarial Valuation Report. This report and CalPERS’ audited financial statements are publicly available reports that can be obtained at CalPERS’ website under Forms and Publications. . . Item 11 Page 58 of 78 Water Enterprise Fund of the City of Vernon Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023 33 Note 8 – Pension Plan (Continued) A. General Information about the Pension Plans (Continued) Benefits Provided CalPERS provides retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. Benefit provisions under both plans are established by State Statute and City Resolution as follows: Classic PEPRA Prior to On or After Hire date January 1, 2013 January 1, 2013 Benefit formula 2.7% @ 55 2% @ 62 Benefit vesting schedule 5 years service 5 years service Benefit payments Monthly for life Monthly for life Retirement age 50 yrs 52 yrs Monthly benefits, as a % of eligible compensation 2.0%-2.7%, 50 yrs -55 yrs, respectively 1.0%-2.0%, 52 yrs -62 yrs, respectively Required employee contribution rate (FY22-23) 8.00%6.25% Required employer contribution rate (FY22-23) 11.50%11.50% Required employer contribution rate (FY21-22) 11.38%11.38% Classic PEPRA Prior to On or After Hire date January 1, 2013 January 1, 2013 Benefit formula 3.0% @ 50 2.7% @ 57 Benefit vesting schedule 5 years service 5 years service Benefit payments Monthly for life Monthly for life Retirement age 50 yrs 50 yrs Monthly benefits, as a % of eligible 3%, 50 yrs 2.0%-2.7% 50 yrs - 57 yrs respectively Required employee contribution rate (FY22-23) 9.00%13.75% Required employer contribution rate (FY22-23) 23.39%20.70% Required employer contribution rate (FY21-22) 22.78%22.78% Miscellaneous Safety Participants are eligible for non-industrial disability retirement if they become disabled and have at least 5 years credited service. There is no special age requirement. The standard non-industrial disability retirement benefit is a monthly allowance equal to 1.8 percent of final compensation, multiplied by service years. Industrial disability benefits are not offered to miscellaneous employees. The City provides industrial disability retirement benefits to safety employees only. The industrial disability retirement benefit is a monthly allowance equal to 50 percent of final compensation. An employee's beneficiary may receive the basic death benefit if the employee becomes deceased while actively employed. The employee must be actively employed with the City to be eligible for this benefit. An employee's survivor who is eligible for any other pre-retirement death benefit may choose to receive that death benefit instead of this basic death benefit. The basic death benefit is a lump sum in the amount of the employee's accumulated contributions, where interest is currently credited at 7.5 percent per year, plus a lump sum in the amount of one month's salary for each completed year of current service, up to a maximum of six months’ salary. . . Item 11 Page 59 of 78 Water Enterprise Fund of the City of Vernon Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023 34 Note 8 – Pension Plan (Continued) A. General Information about the Pension Plans (Continued) Benefits Provided (Continued) For purposes of this benefit, one month's salary is defined as the member's average monthly full-time rate of compensation during the 12 months preceding death. Upon the death of a retiree, a one-time lump sum payment of $500 will be made to the retiree’s designated survivor(s), or to the retiree’s estate. Benefit terms provide for annual cost-of-living adjustments to each employee’s retirement allowance. Beginning the second calendar year after the year of retirement, retirement and survivor allowances will be annually adjusted on a compound basis up to 2 percent. Contributions Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on July 1 following notice of a change in the rate. Funding contributions for both Plans are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute to the difference between the actuarially determined rate and the contribution rate of employees. For the year ended Jun 30, 2023, the Water Fund’s share of employer contributions made to the plans was $470,851. B. Net Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions Assumptions The net pension liability of each of the Plans is measured as of June 30, 2022, using an annual actuarial valuation as of June 30, 2021, rolled forward to June 30, 2022, using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is shown below. Actuarial Cost Method Actuarial Assumptions: Discount Rate Inflation Salary Increases Mortality Rate Table(1) Post Retirement Benefit Increase The lesser of contract COLA or 2.30% until Purchasing Power Protection. Allowance floor on purchasing power applies, 2.30% thereafter (1)The mortality table used was developed based on CalPERS-specific data. The probabilities of mortality are based on the 2021 CalPERSExperience Study for the period from 2001 to 2019. Pre-retirement and Post-retirement mortality rates include generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries. For more details on this table, please refer to the CalPERS Experience Study and Review of Actuarial Assumptions report from November 2021 that can be found on the CalPERS website. Entry Age Normal 6.90% 2.30% Varies by Entry Age and Service Derived using CalPERS’ Membership Data for all Funds. Long-Term Expected Rate of Return The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. . . Item 11 Page 60 of 78 Water Enterprise Fund of the City of Vernon Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023 35 Note 8 – Pension Plan (Continued) B. Net Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions (Continued) Long-Term Expected Rate of Return (Continued) In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Using historical returns of all the funds’ asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11+ years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the rounded single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equal to the single equivalent rate calculated above and adjusted to account for assumed administrative expenses. The expected real rates of return by asset class are as follows: Assumed Asset Asset Class1 Allocation Real Return1,2 Global Equity - Cap-weighted 30.00%4.54% Global Equity - Non-Cap-weighted 12.00%3.80% Private Equity 13.00%7.28% Treasury 5.00%0.27% Mortgage-backed Securities 5.00%0.50% Investment Grade Corporates 10.00%1.56% High Yield 5.00%2.27% Emerging Market Debt 5.00%2.48% Private Debt 5.00%3.57% Real Assets 15.00%3.21% Leverage -5.00%-0.59% 100% 1 An expected inflation of 2.30% used for this period. 2 Figures are based on the 2021 Asset Liability Management study. Discount Rate The discount rate used to measure the total pension liability was 6.90%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on the assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability. Proportionate Share of Net Pension Liability – Allocation of the City’s Pension Plans to the Water Fund The Water Fund’s net pension liability for the Plans is measured as the proportionate share of the aggregate net pension liability of the City’s miscellaneous agent multiple-employer plans and safety cost-sharing plan. The Water Fund’s proportionate share of the aggregate net pension liability was based on the Water Fund’s current year share of contributions of the pension plans relative to the City’s total current year contributions to the pension plans. . . Item 11 Page 61 of 78 Water Enterprise Fund of the City of Vernon Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023 36 Note 8 – Pension Plan (Continued) B. Net Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions (Continued) Proportionate Share of Net Pension Liability – Allocation of the City’s Pension Plans to the Water Fund The Water Fund’s proportionate share of the aggregate net pension liability for the pension plans as of the measurement dare ended June 30, 2021 and 2022 were as follows: Total Pension Plan Fiduciary Net Net Pension Liability Position Liability/(Asset) Proportionate (a) (b) (c) = (a) - (b) Share Balance at 6/30/21 (Valuation Date) 20,712,814 17,866,870 2,845,944$ 3.23% Balance at 6/30/22 (Measurement Date) 14,979,776 10,381,061 4,598,715 2.92% Net changes during 2021-2022 (5,733,038) (7,485,809) 1,752,771 -0.31% Increase (Decrease) Pension Expense and Deferred Outflows and Inflows of Resources For the measurement period ended June 30, 2022, the Water Fund recognized its proportionate share of the aggregate pension expense of the Plans totaled $123,562. At June 30, 2023, the Water Fund reported its proportionate share of the Plans’ aggregate deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows Deferred Inflows of Resources of Resources Contribution made after measurement period 470,158$ -$ Changes of assumptions 421,485 (32,019) Difference between expected and actual experienc 140,648 - Net difference between projected and actual earning on pension plan investments 700,913 - Adjustment due to differences in proportions 87,805 - Difference betwwen City contributions and p roportionate share of contribution - (198,142) T otal 1,821,009$ (230,161)$ $470,158 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the collective net pension liability in the year ending June 30, 2024. Differences between projected and actual investment earnings are amortized on a five-year straight-line basis and all other amounts are amortized over the expected average remaining service lives of all members that are provided with benefits. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows: Measurement Period Ending June 30 Total 2023 336,479$ 2024 252,078 2025 110,995 2026 421,138 Total 1,120,690$ . . Item 11 Page 62 of 78 Water Enterprise Fund of the City of Vernon Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023 37 Note 8 – Pension Plan (Continued) B. Net Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions (Continued) Sensitivity of the Net Pension Liability to Changes in the Discount Rate The following presents the Water Fund’s proportionate share of the Plans’ aggregate net pension liability, calculated using a discount rate of 6.90%, as well as what the Water Fund’s proportionate share of the Plans’ aggregate net pension liability would be if it were calculated using a discount rate that is a 1-percentage point lower (5.90%) or a 1-percentage point higher (7.90%) than the current rate: Discount Rate Current Discount Discount Rate - 1% (5.90%) Rate (6.90%) + 1% (7.90%) Miscellaneous Plan 2,516,150$ 1,650,154$ 943,068$ Safety Plan 4,187,062$ 2,948,561$ 1,936,367$ Water Fund's Net Pension Liability/(Asset) Pension Plan Fiduciary Net Position Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports. Payable to the Pension Plan At June 30, 2023, the Water Fund had no outstanding amount of contributions to the pension plans required for the year ended June 30, 2023. Note 9 – Other Postemployment Benefits (“OPEB”) A. General Information about the OPEB Plan The other postemployment benefits (“OPEB”) described in the following paragraphs relate to the City’s OPEB plan. The Water Fund’s share of the net pension liability of the City’s OPEB Plan is reported as a cost-sharing plan in these financial statements since the Water Fund’s operations are handled by City employees who are eligible to participate in the City’s OPEB plan. Benefits Provided Generally, the City will provide a postemployment benefit plan for the employee only to those who retire at age sixty (60) or later with twenty (20) years of continuous uninterrupted service up to the age of sixty-five (65). Alternatively, employees who retire before the age of sixty (60) with twenty (20) years of continuous uninterrupted service, will be permitted to pay their medical and dental premium cost and upon reaching the age of fifty (50), the City will pay the premium for the medical and dental plans until they reach the age of sixty-five (65). . . Item 11 Page 63 of 78 Water Enterprise Fund of the City of Vernon Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023 38 Note 9 – Other Postemployment Benefits (“OPEB”) (Continued) A. General Information about the OPEB Plan (Continued) Benefits Provided (Continued) Resolution 2011-129 provided lifetime medical benefits to Police Management employees and their spouses, who have been employed as sworn safety personnel for a minimum of twenty (20) years and a minimum of ten (10) years of that service have been with the City of Vernon. Resolution 2011-127 sets forth the MOU of the Vernon Police Officers’ Benefit Association, provided lifetime medical benefits to those employees and their spouses, who have been employed as sworn safety personnel for a minimum of twenty (20) years and a minimum of ten (10) years of that service has been with the City of Vernon. Resolution 2012-217 granted specific retiree medical benefits to employees who retire during the 2012-2013 fiscal year in order to provide an incentive for early retirement whereby the City authorized the payment of medical and dental insurance premiums for eligible retiring employees and their eligible dependents with at least ten (10) years of service plus 5% for each additional full year of service above the ten (10) years of service, and that this offer be extended as an option to safety and safety management groups, at their discretion, in addition to the related options provided in the Vernon Firefighters Association MOU and the Vernon Police Officers’ Benefit Association MOU. Resolution 2013-06 declared that the retiree medical benefits which had not been a vested right for employees will continue to be nonvested right for employees who continue to be employed by the City on or after July 1, 2013, but will become a vested right for those who retire during the 2012-2013 fiscal year. The City’s plan is considered a substantive OPEB plan and the City recognizes cost in accordance with GASB Statement No 75. The City may terminate its unvested OPEB in the future. Contributions The City has established an irrevocable OPEB trust with assets dedicated to paying future retiree medical benefits. The City intends to contribute 100% or more of the actuarially determined contribution for the explicit subsidy liability only. The portion of the liability due to the implicit subsidy is not prefunded but is paid as benefits come due. For the fiscal year ended June 30, 2023, the Water Fund’s proportionate share of contributions made to the trust was $44,864, $45,836 for retiree premiums, resulting in a total contribution of $90,700. B. Net OPEB Liabilities, OPEB Expenses, and Deferred Outflows/Inflows of Resources Related to OPEB The OPEB liability was measured as of June 30, 2022, and total liability used to calculate the net OPEB liability was determined by an actuarial valuation as of June 30, 2022. . . Item 11 Page 64 of 78 Water Enterprise Fund of the City of Vernon Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023 39 Note 9 – Other Postemployment Benefits (“OPEB”) (Continued) B. Net OPEB Liabilities, OPEB Expenses, and Deferred Outflows/Inflows of Resources Related to OPEB (Continued) Significant Actuarial Assumptions Used for Total OPEB Liability The total OPEB liability, measured as of June 30, 2022, was determined using the following actuarial assumptions: Actuarial Cost Method Actuarial Assumptions: Asset Valuation Method Inflation Salary Increases Long Term return on Assets Discount Rate Mortality Improvement Healthcare Trend 6.00% Entry Age Normal Market value of assets 2.30% 2.80% wage inflation plus seniority, merit, and promotion salary increases based on CalPERS Expenditure Study and Review of Actuarial Assumptions published in November 2021 6.00% CalPERS 2021 Experience Study; Project with MP Scale Based on 2022 Getzen model with in inflation rate of 7.00% non-Medicare / 5.50% Medicare decreasing gradually to an ultimate rate of 3.73% by 2075 Change in assumptions Discount rate changed from 6.25% at June 30, 2021 to 6.00% at June 30, 2022. Healthcare trend rate assumption and mortality improvement scale were updated. Discount Rate The discount rate used to measure the total OPEB liability was 6.00%. The projection of cash flows used to determine the discount rate assumed that City contributions will be made at rates equal to the actuarially determined contribution rates. Based on those assumptions, the OPEB plan's fiduciary net position was projected to be available to make all projected OPEB payments for current active and inactive employees and beneficiaries. Therefore, the long-term expected rate of return on OPEB plan investments was applied to all periods of projected benefit payments to determine the total OPEB liability. Long-Term Expected Rate of Return The long-term expected rate of return was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of OPEB plan investment expense and inflation) are developed for each major asset class. These ranges are aggregate to produce the long-term expected rate of return by weighing the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. . . Item 11 Page 65 of 78 Water Enterprise Fund of the City of Vernon Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023 40 Note 9 – Other Postemployment Benefits (“OPEB”) (Continued) B. Net OPEB Liabilities, OPEB Expenses, and Deferred Outflows/Inflows of Resources Related to OPEB (Continued) Long-Term Expected Rate of Return (Continued) Long-term Target Expected Real Asset Class Allocation Rate of Return Global Equity 49.00%4.50% Fixed Income 23.00%1.40% Global Real Estate (REITs)20.00%3.70% Treasury Inflation Protected Securities (TIPS)5.00%0.50% Commodities 3.00%1.10% 100.00% * Preliminary estimate, pending confirmation by CalPERS The Water Fund’s proportionate share of the net OPEB liability as of the measurement dates ended June 30, 2021 and 2022 was as follows: Total OPEB Plan Fiduciary Net Net OPEB Liability Position Liability/(Asset) Proportionate (a) (b) (c) = (a) - (b) Share Balance at June 30, 2021 (Valuation Date) 885,514$ 356,717$ 529,343$ 3.23% Balance at June 30, 2022 (Measurement Date) 796,735 318,965 477,770 2.92% Net changes during 2021-22 (88,779) (37,752) (51,573) -0.31% Sensitivity of the Net OPEB Liability to Changes in the Discount Rate The following presents the Water Fund’s proportionate share of the net OPEB liability if it were calculated using a discount rate that is 1% point lower (5.00%) or 1% point higher (7.00%) than the current rate: Discount Rate Current Discount Discount Rate -1% (5.00%) Rate (6.00%) +1 % (7.00%) 568,304$ 477,770$ 401,870$ Plan's Net OPEB Liability Sensitivity of the Net OPEB Liability to Changes in the Healthcare Cost Trend Rates The following presents the Water Fund’s proportionate share of the net OPEB liability if it were calculated using a healthcare cost trend rates that are 1% point lower (5.3% decreasing to an ultimate rate of 2.8%) or 1% point higher (7.3% decreasing to an ultimate rate of 4.8%) than the current rate: . . Item 11 Page 66 of 78 Water Enterprise Fund of the City of Vernon Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023 41 Note 9 – Other Postemployment Benefits (“OPEB”) (Continued) B. Net OPEB Liabilities, OPEB Expenses, and Deferred Outflows/Inflows of Resources Related to OPEB (Continued) Sensitivity of the Net OPEB Liability to Changes in the Healthcare Cost Trend Rates Healthcare Cost Healthcare Cost Healthcare Cost Trend Rate - 1% Trend Rate Trend Rate + 1% 443,084$ 477,770$ 511,328$ Plan's Net OPEB Liability OPEB Expense and Deferred Inflows and Outflows of Resources Related to OPEB For the year ended June 30, 2023, the Water Fund recognized its proportionate share of the OPEB credit of $(20,488). At June 30, 2023, the Water Fund reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: Deferred Outflows Deferred Inflows of Resources of Resources Contribution made after measurement period 90,700$ -$ Changes in assumptions 24,128 (74,887) Difference between expected and actual experience 3,064 (100,931) Net difference between projected and actual earning on OPEB plan investments 30,138 - Total 148,030$ (175,818)$ The $90,700 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net OPEB liability in the year ending June 30, 2024. Differences between projected and actual investment earnings are amortized on a five-year straight-line basis and all other amounts are amortized over the expected average remaining service lives of all members that are provided with benefits. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized as OPEB expense as follows: Deferred Measurement Period Outflows/(Inflows) Ending June 30 of Resources 2023 (56,973)$ 2024 (56,571) 2025 (6,950) 2026 9,194 2027 (4,867) Thereafter (2,321) Total (118,488)$ Payable to the OPEB Plan At June 30, 2023, the Water Fund had no outstanding amount of contributions to the OPEB plan required for the year ended June 30, 2023. . . Item 11 Page 67 of 78 42 This page intentionally left blank. . . Item 11 Page 68 of 78 REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED) 43 . . Item 11 Page 69 of 78 Fiscal year 2017 2018 2019 2020 2021 Measurement period 2015-16 2016-17 2017-18 2018-19 2019-20 Water Fund's proportion of the net pension liability 3.80% 3.74% 3.11% 3.28% 3.45% Water Fund's proportionate share of the net pension liability 3,619,851$ 4,100,788$ 3,533,209$ 3,964,339$ 4,668,011$ Covered payroll2 499,838$ 1,038,438$ 1,100,727$ 925,620$ 891,592$ Water Fund's proportionate share of the net pension liability as a percentage of covered payroll 724.20% 394.90% 320.99% 428.29% 523.56% Water Fund fiduciary net position as a percentage of the total pension liability 78.91% 77.85% 77.68% 76.15% 74.79% 1 2 Notes to Schedule: Methods and assumptions used to determine contribution rates: Actuarial cost method Entry Age Actuarial Cost Method Amortization method Level percentage of payroll Asset valuation method Fair Market Value Inflation 2.500% Salary increases varies by entry age and service Payroll Growth 2.750% Investment rate of return Water Enterprise Fund of the City of Vernon Required Supplementary Information (Unaudited) Schedule of Proportionate Share of the Net Pension Liability and Related Ratios Last Ten Fiscal Years1 California Public Employees' Retirement System Defined Pension Plan For the Year Ended June 30, 2023 Fiscal year ended June 30, 2017 was the first fiscal year the City allocated a portion of the net pension liability to the Water Fund. Additional years of information will be displayed as it becomes available. Includes one year’s payroll growth using 2.80 percent payroll growth assumption for fiscal years ended June 30, 2022; 2.75 percent payroll growth assumption for fiscal years ended June 30, 2018-21; 3.00 percent payroll growth assumption for fiscal years ended June 30, 2015-17. The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2022-23 were derived from the June 30, 2020 funding valuation report. 7% Net of Pension Plan Investment and Administrative Expenses; includes Inflation. 44 . . Item 11 Page 70 of 78 Fiscal year 2022 2023 Measurement period 2020-21 2021-22 Water Fund's proportion of the net pension liability 3.23% 2.92% Water Fund's proportionate share of the net pension liability 2,845,943$ 4,598,715$ Covered payroll2 792,625$ 628,181$ Water Fund's proportionate share of the net pension liability as a percentage of covered payroll 359.05% 732.07% Water Fund fiduciary net position as a percentage of the total pension liability 85.45% 69.30% Water Enterprise Fund of the City of Vernon Required Supplementary Information (Unaudited) Schedule of Proportionate Share of the Net Pension Liability and Related Ratios (Continued) For the Year Ended June 30, 2023 Last Ten Fiscal Years1 California Public Employees' Retirement System Defined Pension Plan 45 . . Item 11 Page 71 of 78 Fiscal year 2017 2018 2019 2020 2021 Actuarially determined contribution 346,113$ 354,831$ 339,930$ 404,765$ 435,752$ Contributions in relation to the actuarially determined contribution (346,113) (354,831) (339,930) (404,765) (435,752) Contribution deficiency (excess)-$ -$ -$ -$ -$ Covered payroll2 1,038,438$ 1,100,727$ 925,620$ 891,592$ 792,625$ Contributions as a percentage of covered payroll.33.33% 32.24% 36.72% 45.40% 54.98% 1 2 Notes to Schedule: Methods and assumptions used to determine contribution rates: Actuarial cost method Entry Age Actuarial Cost Method Amortization method Level percentage of payroll Asset valuation method Fair Market Value Inflation 2.500% Salary increases varies by entry age and service Payroll Growth 2.750% Investment rate of return Water Enterprise Fund of the City of Vernon Required Supplementary Information (Unaudited) Schedule of Contributions - Pensions For the Year Ended June 30, 2023 Last Ten Fiscal Years1 California Public Employees' Retirement System Defined Pension Plan Fiscal year ended June 30, 2017 was the first year the City allocated a portion of the net position to the Water Fund. Additional years will be displayed as it becomes available. Includes one year’s payroll growth using 2.80 percent payroll growth assumption for fiscal years ended June 30, 2018-21; 2.75 percent payroll growth assumption for fiscal years ended June 30, 2018-21; 3.00 percent payroll growth assumption for fiscal years ended June 30, 2015-17. The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2022-23 were derived from the June 30, 2020 funding valuation report. 7% Net of Pension Plan Investment and Administrative Expenses; includes Inflation. 46 . . Item 11 Page 72 of 78 Fiscal year 2022 2023 Actuarially determined contribution 459,607$ 470,851$ Contributions in relation to the actuarially determined contribution (459,607) (470,851) Contribution deficiency (excess)-$ -$ Covered payroll2 628,181$ 645,770$ Contributions as a percentage of covered payroll.73.16% 72.91% Water Enterprise Fund of the City of Vernon Required Supplementary Information (Unaudited) Schedule of Contributions - Pensions (Continued) For the Year Ended June 30, 2023 Last Ten Fiscal Years1 California Public Employees' Retirement System Defined Pension Plan 47 . . Item 11 Page 73 of 78 Fiscal year 2018 2019 2020 2021 2022 Measurement period 2016-171 2017-18 2018-19 2019-20 2020-21 Water Fund's proportion of the net OPEB liability 4.08% 3.11% 3.28% 3.45% 3.23% Water Fund's proportionare share of the net OPEB liability 1,482,614$ 719,107$ 719,261$ 697,329$ 529,343$ Covered employee payroll 1,368,760$ 1,368,166$ 1,095,236$ 1,048,734$ 1,093,781$ Water Fund's proportionate share of the net OPEB liability as a percentage of covered employee payroll 108.32% 52.56% 65.67% 66.49% 48.40% Water Fund Fiduciary Net Position as a percentage of the total OPEB liability 2.83% 8.62% 16.30% 25.70% 40.22% 1 Other Postemployment Benefits ("OPEB") Plan Historical information is presented only for measurement periods after GASB 75 was implemented in fiscal year of 2017-18 (measurement period of 2016-17). Additional years of information will be displayed as it becomes available. For the Year Ended June 30, 2023 Last Ten Fiscal Years1 Benefits Liability and Related Ratios Water Enterprise Fund of the City of Vernon Required Supplementary Information (Unaudited) Schedule of Proportionate Share of the Net Other Postemployment 48 . . Item 11 Page 74 of 78 Fiscal year 2023 Measurement period 2021-22 Water Fund's proportion of the net OPEB liability 2.92% Water Fund's proportionare share of the net OPEB liability 477,770$ Covered employee payroll 739,897$ Water Fund's proportionate share of the net OPEB liability as a percentage of covered employee payroll 64.57% Water Fund Fiduciary Net Position as a percentage of the total OPEB liability 40.03% Other Postemployment Benefits ("OPEB") Plan For the Year Ended June 30, 2023 Last Ten Fiscal Years1 Benefits Liability and Related Ratios (Continued) Water Enterprise Fund of the City of Vernon Required Supplementary Information (Unaudited) Schedule of Proportionate Share of the Net Other Postemployment 49 . . Item 11 Page 75 of 78 Fiscal year 2018 2019 2020 2021 2022 Actuarially determined contribution 109,990$ 83,829$ 63,389$ 53,086$ 49,744$ Contributions in relation to the actuarially determined contribution (84,361) (93,060) (128,484) (108,041) (94,830) Contribution deficiency (excess)25,629$ (9,231)$ (65,095)$ (54,955)$ (45,086)$ Covered-employee payroll 1,368,166$ 1,095,236$ 1,048,734$ 1,093,781$ 1,024,922$ Contributions as a percentage of covered-employee payroll 6.17% 8.50% 12.25% 9.88% 9.25% 1 Notes to Schedule: Methods and assumptions used to determine contribution rates: Actuarial cost method Entry Age Normal Cost Method Amortization method Level percentage of payroll Asset valuation method Market valuation of assets Discount Rate 6.25% Payroll Growth 3.00% General Inflation Rate 2.5% per year Health Trend 5.6 in FY2023, step down 0.5% per year to 3.9% by 2076 Historical information is presented only for measurement periods after GASB 75 was implemented in fiscal year of 2017-18 (measurement period of 2016-17). Additional years of information will be displayed as it becomes available. The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2022-23 were derived from the June 30, 2020 funding valuation report. Water Enterprise Fund of the City of Vernon Required Supplementary Information (Unaudited) Schedule of Contributions - Other Postemployment Benefits For the Year Ended June 30, 2023 Last Ten Fiscal Years1 Other Postemployment Benefits ("OPEB") Plan 50 . . Item 11 Page 76 of 78 Fiscal year 2023 Actuarially determined contribution 40,896$ Contributions in relation to the actuarially determined contribution (90,700) Contribution deficiency (excess)(49,804)$ Covered-employee payroll 713,856$ Contributions as a percentage of covered-employee payroll 12.71% Water Enterprise Fund of the City of Vernon Required Supplementary Information (Unaudited) Schedule of Contributions - Other Postemployment Benefits (Continued) For the Year Ended June 30, 2023 Last Ten Fiscal Years1 Other Postemployment Benefits ("OPEB") Plan 51 . . Item 11 Page 77 of 78 This page intentionally left blank. 52 . . Item 11 Page 78 of 78 City Council Agenda Report Meeting Date:February 20, 2024 From:Jessica Alcaraz, Financial Services Administrator Department:Finance Submitted by:Angela Melgar, Finance Manager Subject Fiscal Year 2023-24 Mid-Year Financial Update Recommendation Adopt Resolution No. 2024-02 authorizing and approving mid-year budget appropriations and amending the Annual Operating and Capital Budget for Fiscal Year 2023-24. Background The Mid-Year Financial Update reflects continued efforts to provide timely and accurate financial information to assist the City Council with decision making and achievement of the City’s goals. As of December 31, 2023, the mid-year point of the current fiscal year, one would expect to be at the 50% mark for revenues and expenditures. However, certain factors may influence the timing, rate, or recognition of such. At mid-year, actual overall expenses for General Fund and Vernon Public Utilities (VPU) were at 44% and revenues were at 46% of budgeted amounts. Staff evaluated the trajectory of actual versus budgeted results and are providing the recommendations to appropriate additional funds for unforeseen circumstances that have arisen since the normal course of budget setting during the prior fiscal year. Pursuant to City Charter Chapter 8.5, Council may amend or supplement the budget by the affirmative vote of a majority of the members of the Council. General Fund Viewing the General Fund as a whole, about 46% of the cumulative budgeted revenues were received as opposed to about 41% of cumulative budgeted expenditures. Due to the timing of disbursements, some revenue streams are not linear throughout the year. For example, property and parcel taxes were below the midpoint budgeted total, as the largest disbursements are received near the end of the fiscal year. Conversely, at the mid-year point, utility user tax received over 54% of the budgeted amount for FY 2023-24 due to the seasonality of electric usage. Investment income has greatly exceeded budgeted expectations 106% due to the higher yield rates and new investments in place. At mid-year, intergovernmental revenues were 18% of budget; however, most of these revenues reimburse corresponding approved Public Works expenditures that are billed when incurred and approved so it is dependent on this timing. At the end of December 2023, salaries and benefits were 42% of budgeted amount and maintenance and operations expenses were at target level; however, the capital projects and equipment category was only at 10% of the budgeted amount due to deferred projects, long lead times for equipment purchases, and other postponed capital expenditures. Enterprise Funds As of December 31, 2023, Electric revenues were at 48%, Gas revenues were at 33%, and revenues in the Water Fund were at 45% of budgeted amounts. Fiber Optic revenues were at 31% of budgeted revenue due to the year-end timing of interfund billing. As of mid-year, Gas and Water Funds were at 30% and 39% of budgeted expenditures respectively, Electric Fund was at about 46% of budgeted expenditures. Alternatively, Fiber Optic Fund expenditures have already exceeded the budgeted amount. This is mainly due to increased capital outlay expenses while undergoing major infrastructure upgrades that will give the utility a competitive advantage and . . Item 12 Page 1 of 2 help retain and attract more customers. Cash Position At mid-year, approximately 62% of the City’s cash funds are unrestricted, with Electric utility reserves exceeding 180 days of operating expenses. As stated in the FY 2022-23 Annual Comprehensive Financial Report, the General Fund unassigned fund balance is $26 million as of the last audited period ending June 30, 2023. Proposed Budget Adjustments A year-end operating surplus occurs when there is an excess of revenues over expenditures in a particular year, generally a result of higher than budgeted revenues, and/or lower than budgeted expenditures. The City concluded FY 2022-23 with an operating surplus of approximately $14.1 million. Per the Council approved budget, $10 million was allocated to committed reserve fund balances as follows: Economic Uncertainties $5 million, Capital $2 million, Post-retirement $1.5 million, Technology Replacement $500,000 and Fleet Replacement $500,000, leaving a remainder of operating surplus of approximately $4.1 million. Department staff has analyzed their line-item budgets and identified amendments needed for additional expenditures through the end of FY 2023-24 and a recommendation to allocate additional funds to committed reserve fund balances from the General Fund Unassigned Fund Balance. Due to the rising costs of materials, supply chain constraints, and expenditures not known or expected at the adoption of the FY 2023-24 Budget, adjustments are being presented to Council to appropriate and reallocate funds in the General and VPU Funds that are in line with strategic goals and objectives of the City. Fiscal Impact Approval of this action would require an appropriation of $2,507,895 in the General Fund, $2,006,500 in the Electric Fund, $39,500 in the Gas Fund and $860,000 in the Fiber Fund from their respective Fund Balances as detailed in Resolution 2024-02. Attachments 1. Resolution No. 2024-02 . . Item 12 Page 2 of 2 RESOLUTION NO. 2024-02 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON AUTHORIZING AND APPROVING MID-YEAR BUDGET APPROPRIATIONS AND AMENDING THE ANNUAL OPERATING AND CAPITAL BUDGET FOR FISCAL YEAR 2023-24 SECTION 1. Recitals. A. On June 6, 2023, the City Council of the City of Vernon adopted Resolution No. 2023-09, approving the annual operating and capital budget for Fiscal Year 2023-24. B. Changes in anticipated expenditures of the City require a revision of the appropriations for Fiscal Year 2023-24 and amendment of the budget by the affirmative vote of a majority of the members of the City Council, pursuant to Charter Chapter 8.5. C. There are sufficient funds in anticipated revenues and City-wide fund balance to cover the proposed budget adjustments. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF VERNON AS FOLLOWS: SECTION 2. The City Council of the City of Vernon finds and determines that the above recitals are true and correct. SECTION 3. Pursuant to Chapter 8.5 of the Charter of the City of Vernon, a majority of the members of the City Council hereby approves the mid-year budget appropriations in the table below. Fund Department/ Division GL Account Description Adjustment Amount General Human Resources 011-010-120-514090 Worker's Comp Claims - Miscellaneous Employees $ 80,000 General Finance 011-010-130-529215 Cost Allocation Study 37,895 General Finance 011-010-130-529215 Bloomberg Subscription (Budget Transfer Out) (30,000) General Finance 011-010-130-529225 Bloomberg Subscription (Budget Transfer In) 30,000 General Finance 011-010-130-529225 Municipal Advisory Services Agreement 50,000 General Health 011-020-200-527000 Equipment for Emergency Response Vehicle 20,000 General Police 011-030-300-514090 Worker's Comp Claim Payments - Police Safety 220,000 General Facilities Maintenance 011-040-415-660000 City Hall Digital Billboard(s) 300,000 General Street Maintenance 011-040-430-529215 Graffiti Abatement 300,000 . . Item 12 Page 1 of 3 Resolution No. 2024-02 Page 2 of 3 _______________________ Fund Department/ Division GL Account Description Adjustment Amount General Street Maintenance 011-040-430-660000 55th Street Soil Remediation and Paving Project 1,500,000 General Fund Balance 011-000-000-301000 General Fund Unassigned Fund Balance (3,000,000) General Fund Balance 011-000-000-301005 Economic Uncertainties Reserve 1,000,000 General Fund Balance 011-000-000-301015 Post-Retirement Reserve 500,000 General Fund Balance 011-000-000-301025 Fleet Replacement Reserve 500,000 General Fund Balance 011-000-000-301030 Paving Reserve 1,000,000 General Fund Subtotal $ 2,507,895 Electric System Dispatch 055-050-555-660000 Re-appropriate Funds for Uninterruptible Power Supply Ordered in FY 2022-23, Arrived in FY 2023-24 56,500 Electric Engineering 055-050-585-660000 SCE Contract Total $11,735,000 for Engineering and Procurement Related to Interconnection Facilities 1,200,000 Electric Malburg Generation Station 055-050-586-520231 Establish Initial MGS Safety Budget (Budget Transfer In) 51,500 Electric Malburg Generation Station 055-050-586-520232 MGS Environmental (Budget Transfer Out) (51,500) Electric Malburg Generation Station 055-050-586-660000 MGS Capital Outlay (Budget Transfer Out) (63,840) Electric Malburg Generation Station 055-050-586-660005 EAM Essentials (Hexagon) Software (Budget Transfer In) 63,840 Electric Resource Management 055-050-590-520150 Energy - Other Hedged Savings (Budget Transfer Out) (3,000,000) Electric Resource Management 055-050-590-520154 Higher Renewable Energy Credit Purchases Due to Lower Production on All VPU's Renewable Projects (Budget Transfer In) 3,300,000 Electric Resource Management 055-050-590-520160 Natural Gas Expense (Budget Transfer Out) (3,300,000) Electric Resource Management 055-050-590-520180 Capacity - Other Costs (Budget Transfer In) 3,000,000 Electric Customer Service 055-450-575-450017 Fuel Cost Adjustment Credit 750,000 Electric Fund Subtotal $ 2,006,500 Gas Gas 056-060-600-529215 Updated Natural Gas Financial Forecast, Cost of Service, and Rate Study 39,500 Gas Fund Subtotal $ 39,500 . . Item 12 Page 2 of 3 Resolution No. 2024-02 Page 3 of 3 _______________________ Fund Department/ Division GL Account Description Adjustment Amount Water Water 058-070-700-529000 Well 17 Repairs and Maintenance (Budget Transfer In) 500,000 Water Water 058-070-700-660000 Well 19 Capital Outlay (Budget Transfer Out) (500,000) Water Fund Subtotal $ - Fiber Optic Fiber Optic 059-080-800-529000 Additional Repairs & Maintenance for Fiber Operations 160,000 Fiber Optic Fiber Optic 059-080-800-660000 Upgrade to the Existing Fiber Optic Network System and Perform Network Migration Services 700,000 Fiber Optic Fund Subtotal $ 860,000 31 Grand Total $ 5,413,895 SECTION 4. The Annual Operating and Capital Budget for Fiscal Year 2023-24, adopted by Resolution No. 2023-09, is hereby amended to include the mid-year budget appropriations. SECTION 5. The City Clerk shall certify the passage and adoption of this resolution and enter it into the book of original resolutions. APPROVED AND ADOPTED February 20, 2024. ________________________ CRYSTAL LARIOS, Mayor ATTEST: LISA POPE, City Clerk (seal) APPROVED AS TO FORM: ZAYNAH N. MOUSSA, City Attorney . . Item 12 Page 3 of 3 City Council Agenda Report Meeting Date:February 20, 2024 From:Daniel S. Wall, P.E., Director of Public Works Department:Public Works Submitted by:Lissette Melendez, Project Engineer Subject Professional Services Agreement with Architerra Design Group for Landscape Architectural Services – City Hall Plaza Recommendation A. Find that the proposed action is categorically exempt under the California Environmental Quality Act (CEQA) review, in accordance with CEQA Guidelines Section 15262, because the project only involves feasibility or planning studies for possible future actions which the City has not approved, adopted, or funded; and B. Approve and authorize the City Administrator to execute a Professional Services Agreement with Architerra Design Group in substantially the same form as submitted, for the design of the Civil Plaza for a total amount not-to-exceed $122,930 for a three-year term. Background The City of Vernon hosts multiple community events throughout the year in the area in front of City Hall. The current space was able to comfortably accommodate these public gatherings in the past, but as a result of continuous growth in community participation, the space is no longer sufficient. Following a Request for Proposals (RFP) process, the Department of Public Works selected a firm to design, conduct, and assist in the solicitation of recommendations for the construction of a Civil Plaza in this currently underutilized area. The consulting firm will lead stakeholder meetings/design charrettes with a stakeholder’s committee composed of City Staff, produce preliminary plans and cost estimates for feedback, and present a final conceptual design that addresses all options/suggested changes to preliminary plans open for discussion. Professional landscape architectural services for hardscape and low maintenance climate- appropriate landscape design including irrigation, drainage systems, an outdoor congregation area with a stage, and adjustable lighting and sound system design. Pursuant to Vernon Municipal Code (VMC) Section 3.32.080, the Engineering Division publicized an RFP for Landscape Architectural Services – City Hall Plaza, as the cost for the service was anticipated to exceed $50,000 and required competitive selection. Because the RFP is for procurement of landscape architecture services, price was not a factor in the determination of the most qualified proposer pursuant to VMC Section 3.32.090. Proposals were rated on demonstrated competence, professional qualifications, and responsiveness to the RFP. The Engineering Division received three proposals by the due date from qualified firms in response to the RFP posted on or about February 7, 2023. A panel comprised of internal staff evaluated the three proposals received in order to determine the firm best suited to provide the services requested. A comprehensive, fair and impartial evaluation of the proposals was conducted in accordance with the specifications set forth within the RFP document. Established criteria were used in reviewing and comparing the proposals to determine the most suitable firm. At the conclusion of the assessment, it was determined that Architerra Design Group will best meet the needs of the City. Architerra’s proposal demonstrated comprehensive scope of work required to fulfill the services requested by the City and previous projects presented in their proposal demonstrate quality products most similar to the Civil Plaza . . Item 13 Page 1 of 2 concept Public Works is envisioning. Staff recommends that the City enter into a services agreement with Architerra Design Group. The proposed Services Agreement has been reviewed and approved as to form by the City Attorney’s Office. Fiscal Impact The fiscal impact is not-to-exceed $122,930. Sufficient funds are available in General Fund, Public Works, Facilities Maintenance, Capital Outlays Account No. 011-040-415-660000 for the current fiscal year. Attachments 1. Professional Services Agreement – Architerra Design Group . . Item 13 Page 2 of 2 . . Item 13 Page 1 of 58 . . Item 13 Page 2 of 58 . . Item 13 Page 3 of 58 . . Item 13 Page 4 of 58 . . Item 13 Page 5 of 58 . . Item 13 Page 6 of 58 . . Item 13 Page 7 of 58 . . Item 13 Page 8 of 58 . . Item 13 Page 9 of 58 . . Item 13 Page 10 of 58 . . Item 13 Page 11 of 58 . . Item 13 Page 12 of 58 . . Item 13 Page 13 of 58 . . Item 13 Page 14 of 58 EXHIBIT A CONTRACTOR'S PROPOSAL Page 15 of 17 . . Item 13 Page 15 of 58 . . Item 13 Page 16 of 58 . . Item 13 Page 17 of 58 . . Item 13 Page 18 of 58 . . Item 13 Page 19 of 58 . . Item 13 Page 20 of 58 . . Item 13 Page 21 of 58 . . Item 13 Page 22 of 58 . . Item 13 Page 23 of 58 . . Item 13 Page 24 of 58 . . Item 13 Page 25 of 58 . . Item 13 Page 26 of 58 . . Item 13 Page 27 of 58 . . Item 13 Page 28 of 58 . . Item 13 Page 29 of 58 . . Item 13 Page 30 of 58 . . Item 13 Page 31 of 58 . . Item 13 Page 32 of 58 . . Item 13 Page 33 of 58 . . Item 13 Page 34 of 58 . . Item 13 Page 35 of 58 . . Item 13 Page 36 of 58 . . Item 13 Page 37 of 58 . . Item 13 Page 38 of 58 . . Item 13 Page 39 of 58 . . Item 13 Page 40 of 58 . . Item 13 Page 41 of 58 . . Item 13 Page 42 of 58 . . Item 13 Page 43 of 58 . . Item 13 Page 44 of 58 . . Item 13 Page 45 of 58 . . Item 13 Page 46 of 58 . . Item 13 Page 47 of 58 . . Item 13 Page 48 of 58 . . Item 13 Page 49 of 58 . . Item 13 Page 50 of 58 . . Item 13 Page 51 of 58 EXHIBIT B SCHEDULE Page 16 of 17 . . Item 13 Page 52 of 58 LANDSCAPE ARCHITECTURAL SERVICES CITY HALL RENOVATION FEE SUMMARY SHEET TASK A. Conceptual Design $19,550.00 (Architerra Design Group $14,050.00) (Madole & Associates $5,500.00) TASK B. Design Development $16,755.00 $71,900.00TASK C. Construction Documents (Architerra Design Group $42,700.00) (Madole & Associates $10,000.00) (JCA Engineering $19,200.00) TASK D. Construction Administration (Architerra Design Group $11,325.00) (JCA Engineering $1,400.00) $12,725.00 PROFESSIONAL FEE TOTAL:$120,930.00 $2,000.00Estimated Reimbursable Expense Allowance: GRAND TOTAL (with estimated reimbursable allowance):S122,930.00 Landscape Architect - Architerra Design Group Hourly Billing Rates: Principal Director Project Manager Landscape Designer CADD Designer Clerical $200.00/Hour $175.00/Hour $135.00/Hour $120.00/Hour $100.00/Hour $65.00/Hour . . Item 13 Page 53 of 58 Civil Engineer - Madole & Associates Hourly Billing Rates: Principal and Registered Engineer Principal Engineer Designer Drafter Administration $223.00/Hour $185.00/Hour $165.00/Hour $148.00/Hour $110.00/Hour $305.00/Hour $185.00/Hour Two-man Survey Crew One-man Survey Crew Electrical Engineer - JCA Engineering Hourly Billing Rates: Project Engineer/Manager Designer Drafting/CADD $220.00/Hour $180.00/Hour $165.00/Hour Reimbursable Expenses The following costs shall be reimbursed at cost and are not included in the Basic Fee for Services: •Expense of outside reprographic reproductions for generation of original drawings, plan check submittals and construction bidding, including printing, plotting, Xerox copying, photo reproductions, display photo boards and handouts for community and agency meetings. •All automobile mileage shall be paid at the standard rate for business automobile use as set forth by the Internal Revenue Service. • • • Cost of postage and shipping expenses other than first class mail. Photographic services, film and processing. Cost of models, special rendered exhibits, promotional photography, special process printing, special equipment, special printed reports or publications maps and documents approved in advance by City. •Agency Processing and fees paid for securing approval of agencies having jurisdiction over the Project (Plan check fees, variance applications, etc.). • • Fees for additional special consultants retained with the approval of City. Third party soil testing, as required by California Water Efficient Landscape Ordinance AB 1881. . . Item 13 Page 54 of 58 . . Item 13 Page 55 of 58 . . Item 13 Page 56 of 58 . . Item 13 Page 57 of 58 EXHIBIT C EQUAL EMPLOYMENT OPPORTUNITY PRACTICES PROVISIONS A. Contractor certifies and represents that, during the performance of this Agreement, the contractor and each subcontractor shall adhere to equal opportunity employment practices to assure that applicants and employees are treated equally and are not discriminated against because of their race, religious creed, color, national origin, ancestry, handicap, sex, or age. Contractor further certifies that it will not maintain any segregated facilities. B. Contractor agrees that it shall, in all solicitations or advertisements for applicants for employment placed by or on behalf of Contractor, state that it is an "Equal Opportunity Employer" or that all qualified applicants will receive consideration for employment without regard to their race, religious creed, color, national origin, ancestry, handicap, sex or age. C. Contractor agrees that it shall, if requested to do so by the City, certify that it has not, in the performance of this Agreement, discriminated against applicants or employees because of their membership in a protected class. D. Contractor agrees to provide the City with access to, and, if requested to do so by City, through its awarding authority, provide copies of all of its records pertaining or relating to its employment practices, except to the extent such records or portions of such records are confidential or privileged under state or federal law. E. Nothing contained in this Agreement shall be construed in any manner as to require or permit any act which is prohibited by law. Page 17 of 17 . . Item 13 Page 58 of 58