Agenda packet — Aliso Viejo City Council, July 17, 2024 (part 1 of 3)

AGENDA

ALISO VIEJO CITY COUNCIL
WEDNESDAY, JULY 17, 2024
6:00 PM CLOSED SESSION
7:00 PM REGULAR MEETING

CITY HALL

COUNCIL CHAMBERS
12 JOURNEY

ALISO VIEJO, CA

Mayor Mike Munzing

Mayor Pro Tem Tiffany Ackley
Councilmember Ross Chun
Councilmember Max Duncan
Councilmember Richard Hurt

WELCOME to the City of Aliso Viejo City Council meeting. Those persons wishing to address the City Council are requested to complete and submit to the City Clerk a “Request to Address City Council” form available at the entrance to the City Council Chambers. Speakers will be called at the appropriate time as their interested matter is heard. COMMENTS WILL BE LIMITED TO THREE MINUTES PER SPEAKER. Council proceedings are recorded.

It is the City's intention to comply with the Americans with Disabilities Act (ADA) . If you need special assistance to participate in the meeting, the City will make reasonable arrangements to ensure accessibility and/or accommodations. [28 CFR 35.102- 35.104 ADA Title II] Please contact the City Clerk's Office at (949) 425- 2505 at least 48 hours prior to the meeting.

Regular meetings of the City Council are held on the first and third Wednesday of the month at the City Hall Council Chambers, 12 Journey, Aliso Viejo. Copies of the agenda are available in the lobby at City Hall on the Thursday preceding a regularly scheduled City Council meeting. All communications received by the City regarding an agenda item have been included in the agenda materials. Supplemental documents relating to specific agenda items, including communications received after agenda delivery, are presented at the dais and in the Public Copy agenda binder at the time of the meeting. Supplemental documents are also available for review in the City Clerk's office, 12 Journey, Aliso Viejo. For more information, please contact City Hall at (949) 425- 2505.

This meeting will be broadcast live on Cox Communications Channel 851, AT&T U -Verse Channel 99 and the City's website. By attending the City Council Meeting, you are giving your permission to be televised. The Council Meetings are rebroadcast on Wednesday at 7:00 p.m. on Cox Communications Channel 851, AT&T U -Verse Channel 99, and can be viewed on the internet at www.avcity.org.

MITZI ORTIZ SCOTT C. SMITH LAUREN TORRES

ACTING CITY MANAGER CITY ATTORNEY DEPUTY CITY CLERK

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PLEASE SILENCE ALL CELL PHONES AND OTHER

ELECTRONIC EQUIPMENT WHILE CITY COUNCIL IS IN SESSION

CALL TO ORDER: Convene Special Meeting

PUBLIC COMMENTS:

CLOSED SESSION:

CONFERENCE WITH REAL PROPERTY NEGOTIATORS
Pursuant to Government Code section 54956.8
Property: 100 Park Avenue, Aliso Viejo; APN#s 634-321-34 and 634-321-35-40 Agency Negotiators: Mayor and City Manager
Negotiating Parties: City of Aliso Viejo, its authorized agents and representatives Under Negotiation: Price and terms for potential lease

PUBLIC EMPLOYEE PERFORMANCE EVALUATION
Pursuant to Government Code Section 54957
Title: City Attorney

CALL TO ORDER: Convene Regular Meeting

ROLL CALL

PLEDGE OF ALLEGIANCE:

REPORT FROM CLOSED SESSION:

1. SPECIAL PRESENTATIONS:

1.1 BUSINESS OF THE MONTH - TRATTORIA TRULLO

2. ADDITIONS, DELETIONS, REORDERING TO THE AGENDA:

3. COMMUNITY INPUT:

Members of the public wishing to address the City Council are requested to complete and submit to the City Clerk a "Request to Address City Council" form available at the entrance to the City Council Chambers. In compliance with the Brown Act, no discussion or action may be taken on comments received at this time, except the City Council may briefly respond to statements made or questions posed. Comments are limited to three (3) minutes per speaker.

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4. CONSENT CALENDAR:

All matters listed on the Consent Calendar will be acted upon by one vote unless members of the City Council, or staff request a matter to be discussed and/or removed from the Consent Calendar for separate action. Items removed from the Consent Calendar will be discussed and voted upon immediately following City Council action on the remainder of the Consent Calendar.

4.1 WAIVE THE READING OF ALL ORDINANCES AND RESOLUTIONS Recommended Action: Approve the reading by title only of all ordinances and resolutions wherein the titles appear on the public agenda; said titles shall be determined to have been read by title, and further reading is waived.

4.2 APPROVAL OF MINUTES
Recommended Action: Approve the Minutes as submitted for the June 19, 2024 Special Meeting and the June 19, 2024 Regular Meeting.

Draft Minutes - June 19, 2024 Special Meeting
Draft Minutes - June 19, 2024 Regular Meeting

4.3 ACCOUNTS PAYABLE
Recommended Action:

Ratify accounts payable checks and electronic funds transfers issued between June 7, 2024, and July 3, 2024, in the amount of $2,013,843.64.

Staff Report
Attachment 1 - Accounts Payable Report

4.4 TREASURER’S STATEMENT – MAY 2024
Recommended Action:

Receive and file the May 2024 Treasurer’s Statement.

Staff Report
Attachment 1 - May 2024 Treasurer’s Statement

4.5 FISCAL YEAR 2024-25 INVESTMENT POLICY
Recommended Action:

Adopt a Resolution approving the Investment Policy for Fiscal Year 2024- 25 and rescinding Resolution No. 2023-21 in its entirety.

Staff Report
Attachment 1 - Resolution
Attachment 2 - Investment Policy (Clean)
Attachment 3 - Investment Policy (Redline)
Attachment 4 - Resolution No. 2023-21

4.6 RESOLUTION OF COMMUNITY FACILITIES DISTRICT NO. 2005 -01 (GLENWOOD

AT ALISO VIEJO) AUTHORIZING THE ANNUAL LEVY OF SPECIAL TAXES FOR FISCAL YEAR 2024-25
Recommended Action:

Adopt a resolution of the City Council, acting as the legislative body of Community Facilities District No. 2005-01 (Glenwood at Aliso Viejo), authorizing the annual levy of special taxes for fiscal year 2024-25.

Staff Report
Attachment 1 - Resolution
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4.7 ADDENDUM P TO THE LEASE AGREEMENT WITH PMZ PENSION
CORPORATION FOR 12 JOURNEY, SUITE 201
Recommended Action:

1. Approve Addendum P to the lease agreement with PMZ Pension Corporation for 12 Journey Suite 201; and

2. Authorize the City Manager to execute the Addendum.

Staff Report
Attachment 1 - Lease Addendum

4.8 NATIONAL OPIOID SETTLEMENTS WITH DEFENDANT KROGER CO.

Recommended Action:

1. Opt into the settlement agreement with Kroger, allocate the City’s portion of the settlement funds to the County of Orange, and direct the City Manager to execute any documents necessary to implement the action; and

2. Grant the City Manager authority to execute and enter into future similar agreements related to the nation-wide opioid settlements.

Staff Report
Attachment 1 - Settlement Agreement
Attachment 2 - Side Letter
Attachment 3 - Participation and Release Form

5. PUBLIC HEARINGS:

None.

6. DISCUSSION:

None.

7. CITY MANAGER' S REPORT:

8. ANNOUNCEMENTS / COUNCIL COMMENTS / COMMITTEE UPDATES:

9. ADJOURNMENT:

The next regularly scheduled City Council meeting is August 7, 2024.

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Special Meeting Minutes

CITY OF ALISO VIEJO

CITY COUNCIL MINUTES

SPECIAL MEETING
June 19, 2024, 6:00 P.M.

Council Chambers, City Hall, 12 Journey
Aliso Viejo, California
CALL TO ORDER: Mayor Pro Tem Ackley called the Special Meeting of the City Council of the City of Aliso Viejo to order at 6:03 p.m.

ROLL CALL:

PRESENT: MAYOR MIKE MUNZING

MAYOR PRO TEM TIFFANY ACKLEY

COUNCILMEMBER ROSS CHUN

COUNCILMEMBER MAX DUNCAN
COUNCILMEMBER RICHARD W. HURT
ABSENT: NONE
STAFF PRESENT: MITZI ORTIZ, ACTING CITY MANAGER
SCOTT C. SMITH, CITY ATTORNEY

LAUREN TORRES, DEPUTY CITY CLERK

ISAAC AZIZ, INFORMATION TECHNOLOGY MANAGER

JAMES PORRAS, CODE ENFORCEMENT OFFICER
CAPT. ALAN VILLANUEVA, CHIEF OF POLICE SERVICES

1. DISCUSSION:

1.1 POTENTIAL ILLEGAL COMMERCIAL CANNABIS USE AT 22912 PACIFIC PARK Acting City Manager Mitzi Ortiz provided an overview. Chief of Police Services Captain Alan Villanueva and City Attorney Scott Smith provided additional information. Staff responded to questions regarding security for code enforcement officers, site access, closure timeline, certificate of occupancy requirements, status of operation, interior construction, evidence of dispensary operations, emergency abatement ordinance, tenant violations, and lease requirements. Councilmembers commented on the matter.

Mayor Pro Tem Ackley opened for public comment and the following persons provided comment:

1. Kalen Wilson expressed concerns with the current tenants.

Recommended Action: Receive and file.

No further action was taken.
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Special Meeting Minutes
MAYOR PRO TEM ACKLEY RECESSED THE MEETING TO CLOSED SESSION AT 6:48 P.M.

CLOSED SESSION:

PUBLIC EMPLOYEE PERFORMANCE EVALUATION
Pursuant to Government Code Section 54957
Title: City Attorney
REPORT FROM CLOSED SESSION:

City Attorney Scott Smith stated no reportable action was taken.

ADJOURNMENT: Mayor Pro Tem Ackley adjourned the meeting at 6:55 p.m. to the June 19, 2024 Regular Council Meeting.

Respectfully submitted: Approved by:
________________________ ________________________

LAUREN TORRES MIKE MUNZING

DEPUTY CITY CLERK MAYOR
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Regular Meeting Minutes

CITY OF ALISO VIEJO

CITY COUNCIL MINUTES

REGULAR MEETING
June 19, 2024, 7:00 PM
Council Chambers, City Hall, 12 Journey
Aliso Viejo, California
CALL TO ORDER: Mayor Pro Tem Ackley called the Regular Meeting of the City Council of the City of Aliso Viejo to order at 7:07 p.m.

ROLL CALL
PRESENT: MAYOR MIKE MUNZING

MAYOR PRO TEM TIFFANY ACKLEY

COUNCILMEMBER ROSS CHUN

COUNCILMEMBER MAX DUNCAN
COUNCILMEMBER RICHARD W. HURT
ABSENT: NONE
STAFF PRESENT: MITZI ORTIZ, ACTING CITY MANAGER

SCOTT SMITH, CITY ATTORNEY

LAUREN TORRES, DEPUTY CITY CLERK

ANN EIFERT, FINANCIAL SERVICES DIRECTOR

SHAUN PELLETIER, PUBLIC WORKS DIRECTOR

LIZZY MENDOZA, RECREATION & COMMUNITY SERVICES

MANAGER

ISAAC AZIZ, INFORMATION TECHNOLOGY MANAGER
CAPT. ALAN VILLANUEVA, CHIEF OF POLICE SERVICES
PLEDGE OF ALLEGIANCE: City Attorney Scott Smith led the pledge of allegiance.

REPORT FROM CLOSED SESSION:

City Attorney Scott Smith stated there was no reportable action.

1. SPECIAL PRESENTATIONS:

1.1 BUSINESS OF THE MONTH - PAMPAS HELADOS ARGENTINOS
Mayor Pro Tem Ackley introduced the video and presented the certificate of recognition to owner Sandra Hoyos. Sandra expressed her appreciation. 7

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Regular Meeting Minutes

2. ADDITIONS, DELETIONS, REORDERING TO THE AGENDA:

Motion: Councilmember Hurt moved and Councilmember Chun seconded to table Discussion Item 6.2. Motion carried 5-0.

3. COMMUNITY INPUT:

1. Elizabeth Hansburg expressed her support for the City’s Housing Element.

4. CONSENT CALENDAR:

Unless otherwise indicated below, the following pertains to all items on the Consent Calendar.

Motion: Mayor Munzing moved and Councilmember Hurt seconded to approve the recommended actions. Motion carried 5-0.

4.2 APPROVAL OF MINUTES
Recommended Action: Approve the Minutes as submitted for the June 5, 2024 Special Meeting and the June 5, 2024 Regular Meeting.

4.3 ACCOUNTS PAYABLE
Recommended Action: Ratify accounts payable checks and electronic funds transfers issued between May 10, 2024, and June 6, 2024, in the amount of $1,113,140.41.

4.4 APPROPRIATIONS LIMIT – FISCAL YEAR 2024-25
Recommended Action: Adopt Resolution No. 2024-19 setting the Proposition 4 (GANN) Appropriations limit for Fiscal Year (FY) 2024-25 at $58,378,143.

4.5 AGREEMENT WITH PROCURE AMERICA, INC. FOR COST REDUCTION

CONSULTING SERVICES
City Attorney Scott Smith responded to questions regarding disclosure and bid requirements for contractors.
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Regular Meeting Minutes
Recommended Action:

1. Approve an agreement with Procure America, Inc. for cost reduction consulting services; and

2. Authorize the City Manager to execute a professional services agreement with Procure America, Inc. in the amount not-to-exceed $55,000 for five years.

Motion: Councilmember Hurt moved and Mayor Pro Tem Ackley seconded to allow bids for this service. Motion carried 5 -0.

4.6 LOCAL HAZARD MITIGATION PLAN ADOPTION
Recommended Action: Adopt Resolution No. 2024-20 of the 2024 City of Aliso Viejo Local Hazard Mitigation Plan (LHMP)

4.7 BIENNIAL REVIEW OF THE CITY’S CONFLICT OF INTEREST CODE Recommended Action: Direct staff to review the City’s Conflict of Interest Code for updates and submit its findings to Council by October 1, 2024.

5. PUBLIC HEARINGS:

None.

6. DISCUSSION:

6.1 PROPOSED ANNUAL BUDGET FOR FISCAL YEAR 2024-25
Acting City Manager Mitzi Ortiz introduced Finance Director Ann Eifert, who provided an overview. Councilmembers commented on the matter.

Recommended Action:

1. Adopt Resolution No. 2024-21 adopting the Annual Budget for Fiscal 2024-25; and

2. Adopt Resolution No. 2024-22 approving City Salary Schedules.

Motion: Councilmember Hurt moved and Councilmember Chun seconded to approve the recommended actions. Motion carried 5-0.

6.2 TABLED DISCUSSION OF MAYORAL ROTATION POLICIES
This item was removed from consideration.

7. CITY MANAGER' S REPORT:

Acting City Manager Mitzi Ortiz thanked City staff for their hard work. 9

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Regular Meeting Minutes

8. ANNOUNCEMENTS / COUNCIL COMMENTS / COMMITTEE UPDATES:

Councilmember Chun
• Congratulated Boys & Girls Club Youths of the Month
• Thanked City staff for promptly addressing a recent issue • Attended OCFA Budget and Finance Committee Meeting
• Attended Aliso Viejo Youth Council Human Trafficking Forum • Attended The Covington Senior Living Community’s 20th anniversary celebration • Attended the Aliso Viejo Chamber of Commerce Networking Breakfast • Met with Illumination Foundation CEO Dr. Pooja Bhalla Councilmember Duncan:
• Commented on the importance of e-bike safety
• Thanked City Staff for their hard work
Councilmember Hurt:
• Attended TCA Board of Directors Meeting
• Attended OC Mosquito and Vector Control District Board of Directors Meeting. • Commented on the importance of e-bike safety
Mayor Pro Tem Ackley:
• Attended AVCA Standing Committee Meeting
• Commented on AVCA’s use of non-synthetic weed abatement products • Commented on AVCA’s upcoming 4th of July Celebration
• Wished residents a happy Juneteenth
Mayor Munzing:
• Attended AVCA Standing Committee Meeting
• Attended Travis Mooney Eagle Scout Celebration
• Attended Aliso Viejo Chamber of Commerce’s Networking Breakfast • Announced upcoming State of the City event, to be held on October 17, 2024, at Soka University
• Commented on tonight’s special meeting
• Thanked staff for their hard work

9. ADJOURNMENT: Mayor Munzing adjourned the meeting at 7:44 p.m. to the regularly scheduled meeting of July 17, 2024.

Respectfully submitted: Approved by:
________________________ ________________________

LAUREN TORRES MIKE MUNZING

DEPUTY CITY CLERK MAYOR
10 City of Aliso Viejo

AGENDA ITEM
DATE: July 17, 2024
TO: Mayor and City Council
FROM: Ann Eifert, Director of Financial Services

SUBJECT: ACCOUNTS PAYABLE
Recommended Action:

Ratify accounts payable checks and electronic funds transfers issued between June 7, 2024, and July 3, 2024, in the amount of $2,013,843.64.

Fiscal Impact:

Expenditures in the amount of $2,013,843.64.

Background:

The City issues accounts payable checks on a bi-weekly basis and presents them to City Council for ratification at its next regularly scheduled City Council meeting.

Discussion:

The attached registers containing checks and electronic funds transfers issued between June 7, 2024, and July 3, 2024, for $2,013,843.64, are being presented for ratification. All payments have been made in compliance with the City’s purchasing policy and procedures. Payments have been reviewed and approved by the appropriate departmental staff. The issued accounts payable checks and electronic funds transfers have been reviewed and deemed in accordance with the fiscal year budget by the Director of Financial Services.

Attachment:

1. Accounts Payable Report
11 Accounts Payable
Description (Item)Vendor Name Amount
101 - GENERAL FUND
REF0011669334 - 5/23 ORD SUMMARY INTRO-1 POLARISCALIFORNIA NEWSPAPERS PARTNERSHIP 228.81 REF001664805 - 5/2 PN LUCKY STRIKE CUPCALIFORNIA NEWSPAPERS PARTNERSHIP 310.00 REF0011664022 - 5/2 PN 1 POLARIS ZONE CHANGECALIFORNIA NEWSPAPERS PARTNERSHIP 310.00 REF0011664808 - 5/2 PN SENDER ONE CUP/SDPCALIFORNIA NEWSPAPERS PARTNERSHIP 317.39 JUL'24 VISION - RCCHOICE BUILDER 24.19
JUL'24 VISION - DDCHOICE BUILDER 24.19
JUL'24 ADMIN FEECHOICE BUILDER 35.00
JUL'24 DENTAL - RHCHOICE BUILDER 96.90
JUL'24 DENTAL - RCCHOICE BUILDER 145.88
JUL'24 DENTAL INSURANCECHOICE BUILDER 1,774.04
JUL'24 VISION - RHCHOICE BUILDER 15.03
JUL'24 DENTAL - DDCHOICE BUILDER 145.88
JUL'24 VISION INSURANCECHOICE BUILDER 275.99
FY24-25 OC RGSTR SUBS ACCT#150428229-26 WKS_DEC'24ORANGE COUNTY REGISTER 468.60 CD-2024-00021_16 RIDGECREST_HELEN JUNGHELEN JUNG 500.00 24-05-060_24 DEERWOOD_CASEY OKUMACASEY OKUMA 3,000.00
CD-2024-00042_24 DEERWOOD_CORY HOWARDCORY HOWARD 1,350.00 CD-2024-00048_26 FALCON CREST LN_ALAS AND BRAVOALAS AND BRAVO 500.00 JUL'24 LIFE INSURANCEUNITED OF OMAHA LIFE INSURANCE CO. 1,439.57 JUL'24 CALPERS HEALTH PREMIUMCALPERS HEALTH 22,552.35
JUL'24 HEALTH PREMIUM - RCCALPERS HEALTH 2,195.87
JUL'24 HEALTH PREMIUM PEMHCA MINIMUM - RCCALPERS HEALTH 157.00 2663_21 ELDERWOOD_SWAN POOLSSWAN POOLS 3,000.00
MAY'24 KAISER GRADING PLAN CHECKCIVIL SOURCE, AN NV5 COMPANY 2,710.00 MAY'24 ALISO CREEK GRADING - S.WILSONCHARLES ABBOTT ASSOC INC 95.00 MAY'24 KAISER GRADING - R.BEIMERCHARLES ABBOTT ASSOC INC 1,015.00 MAY'24 SCE - R.BRUNELLCHARLES ABBOTT ASSOC INC 236.25
MAY'24 MNWD - R.BRUNELLCHARLES ABBOTT ASSOC INC 236.25
MAY'24 CITY LIGHTS GRADING - R.BRUNELLCHARLES ABBOTT ASSOC INC 603.75 MAY'24 CITY LIGHTS GRADING - J.LOPEZCHARLES ABBOTT ASSOC INC 210.00 MAY'24 ALISO CREEK GRADING - R.BRUNELLCHARLES ABBOTT ASSOC INC 708.75 MAY'24 FERRIERA - R.BRUNELLCHARLES ABBOTT ASSOC INC 840.00 MAY'24 FERREIRA - J.LOPEZCHARLES ABBOTT ASSOC INC 105.00 MAY'24 COX - R.BRUNELLCHARLES ABBOTT ASSOC INC 236.25
3061_21 ROSY FINCH LN_SWAN POOLSSWAN POOLS 3,000.00
CD-2023-00038_150 COLUMBIA_COMPASS BIBLE CHURCHCOMPASS BIBLE CHURCH 2,000.00 CD-2023-00044_150 COLUMBIA_COMPASS BIBLE CHURCHCOMPASS BIBLE CHURCH 500.00 51,362.94

CITY COUNCIL
05/17/24-06/16/24 CITY COUNCIL PHONEAT&T 237.11
DL 4/23 LAKE FOREST FLORAL -CC MEMORIAL DAY WREATHUS BANK PURCHASING CARD PROGRAM 366.69 DL 5/03 MARRIOTT-SCAG CONF HOTEL - RC (SCAG REIMB)US BANK PURCHASING CARD PROGRAM (246.25) DL 5/03 MARRIOTT-SCAG CONF HOTEL - MD (SCAG REIMB)US BANK PURCHASING CARD PROGRAM (153.55) DL 5/16 OC DIVISION - LOCC MEETING - TAUS BANK PURCHASING CARD PROGRAM 30.00 DL 5/01 MARRIOTT - SCAG CONF HOTEL - RCUS BANK PURCHASING CARD PROGRAM 492.50 DL 5/01 MARRIOTT SCAG CONF HOTEL - MDUS BANK PURCHASING CARD PROGRAM 492.50 CITY COUNCIL TOTAL: 1,219.00

CITY MANAGER
APR-MAY'24 ACM TOLL ROAD REIMBURSEMENTMITZI ORTIZ 98.96 JUL’24 HEALTH PREMIUM – DAVID DOYLECALIFORNIA PHYSICIANS SERVICE 2,304.95 LT 5/13-5/16/24 2024 CAPIO CONF REIMB_MILEAGELAUREN TORRES 213.70 JUL'24-PG-HEALTH PREMIUMCALPERS HEALTH 157.00
JUN'24 DD HEALTH PREMIUMCALPERS HEALTH (2,259.76)
05/17/24-06/16/24 CITY MANAGER PHONEAT&T 45.41
05/17/24-06/16/24 HR PHONEAT&T 50.44
DL 5/16 CITY OF BREA - OCCMA SUMMER RETREAT - IAUS BANK PURCHASING CARD PROGRAM 63.00 12 Description (Item)Vendor Name Amount
LL 6/19 CCAC NUTS&BOLTS WKSHP 8/29-30 L.TORRESUS BANK PURCHASING CARD PROGRAM 250.00 LL 5/21 ICMA ONLINE MBSHP-L. TORRESUS BANK PURCHASING CARD PROGRAM 200.00 CITY MANAGER TOTAL: 1,123.70

ECONOMIC DEVELOPMENT
FEB'24 AVTC CONSULTING SERVICESKOSMONT & ASSOCIATES 5,902.00 JAN-MAR'24 SALES TAX-EFUELEFUEL LLC 159,077.20
OCT-DEC'23 - 4TH QTR SALES TAX - HUNT & SONSHUNT & SONS LLC 371,368.40 JUL-SEP'23 - 3RD QTR SALES TAX - HUNT & SONSHUNT & SONS LLC 267,175.50 ECONOMIC DEVELOPMENT TOTAL: 803,523.10

HUMAN RESOURCES
APR'24 EAP PROGRAMHEALTH AND HUMAN RESOURCE CENTER INC 102.90 JUL'24 EAP PROGRAMHEALTH AND HUMAN RESOURCE CENTER INC 102.90 5/30/24-CALPERS REMITTANCE/BLUE SHIELD OF CAFEDERAL EXPRESS 85.02 DL 5/01 VONS-CJPIA CPR TRAINING BREAKFAST & DRINKSUS BANK PURCHASING CARD PROGRAM 51.88 DL 5/01 BAGELS & BREW - CJPIA CPR TRAINING LUNCHUS BANK PURCHASING CARD PROGRAM 335.57 DL 5/01 PAVILIONS - CJPIA CPR TRAINING SNACKSUS BANK PURCHASING CARD PROGRAM 86.43 DL 5/15 PAVILIONS - CJPIA FE TRAINING - BREAKFASTUS BANK PURCHASING CARD PROGRAM 132.18 HUMAN RESOURCES TOTAL: 896.88

CITY CLERK
MO FY24-25 CCAC MEMBERSHIP DUESCITY CLERK'S ASSOCIATION OF CALIFORNIA 250.00 MAY'24 CC OFFICE SUPPLIESSTAPLES ADVANTAGE 13.13
MO 5/19-23 IIMC CONF CGY REIMB_MILEAGE AIR & CABMITZI ORTIZ 700.91 IIMC ANNUAL FULL MBR RENEWAL TO 6/30/25 - M.ORTIZINTERNATIONAL INSTITUTE OF MUNICIPAL CLERKS 225.00 MO 5/30 LCC CONF & WKSHP IN LB 10/16-18US BANK PURCHASING CARD PROGRAM 800.00 MO 5/23 HOTEL LEGERMAIN CGY-IIMC CNF 5/19-23US BANK PURCHASING CARD PROGRAM 827.68 CITY CLERK TOTAL: 2,816.72

CITY ATTORNEY
MAY'24 BBK GENERAL RETAINER LEGAL SERVICESBEST BEST & KRIEGER 24,150.00 MAY'24 BBK LABOR & EMPLOYMENT (SPECIALIZED)BEST BEST & KRIEGER 2,522.50 MAY'24 BBK LABOR & BENEFITSBEST BEST & KRIEGER 487.70
MAY'24 MAJOR GENERAL PLAN UPDATE(SPECIAL PROJECTS)BEST BEST & KRIEGER 1,762.90 MAY'24 APPLICANT-INITIATED/REIMBURSABLE (AIR)BEST BEST & KRIEGER 300.00 MAY'24 BBK GENERAL LITIGATIONBEST BEST & KRIEGER 74.40
MAY'24 BBK GENERAL PLAN TOWN CTR SPECIFIC PLANBEST BEST & KRIEGER 289.00 CITY ATTORNEY TOTAL: 29,586.50

FINANCE
APR-JUN'24 PROPERTY TAX CONTRACT SERVICESHDL COREN & CONE 2,149.63 JUL'24 CALPERS ADMIN FEECALPERS HEALTH 71.16
JUL'24 CALPERS ADMIN FEECALPERS HEALTH 7.53
APR'24 PARS REP FEESPARS 300.00
APR-JUN'24 SALES TAX RECOVERY SERVICEHINDERLITER DE LLAMAS & ASSOCIATES 109.92 APR-JUN'24 SALES TAX CONTRACT SERVICEHINDERLITER DE LLAMAS & ASSOCIATES 163.01 APR-JUN'24 SALES TAX CONTRACT SERVICEHINDERLITER DE LLAMAS & ASSOCIATES 1,541.00 FINANCE TOTAL: 4,342.25

INFORMATION TECHNOLOGY
MAY'24 AT&T INTERNET SERVICE ADJAT&T 14.73
SEP'23 CH FIBER INTERNET SERVICEAT&T 1,695.39
5/06/24-6/05/24 CH ALARM/POTS LINEAT&T 3,726.19
JUN'24 ACCT #0202 CH CABLE TVCOX COMMUNICATIONS, INC 184.96 JUN'24 ACCT #8802 CH INTERNET-FIBER 600MBCOX COMMUNICATIONS, INC 1,500.00 JUN'24 ACCT#9302 LAB INTERNETCOX COMMUNICATIONS, INC 85.39 JUN'24 AT&T INTERNET SERVICE ADJ - SEPT'23 LCAT&T 44.20 JUN'24 AT&T CH FIBER INTERNET SERVICEAT&T 1,695.39
MAY'24 NETWORK SUPPORT & SECURITYKEETER TECHNICAL SERVICE COMPANY LLC 416.67 JUN'24 NETWORK SUPPORT & SECURITYKEETER TECHNICAL SERVICE COMPANY LLC 416.67 MAY'24 ENERGOV ELM AND ASSET MGT SERVICESGO LIVE TECHNOLOGY INC 855.00 JUN'24 ENERGOV ELM AND ASSET MGT SERVICESGO LIVE TECHNOLOGY INC 495.00 05/17/24-06/16/24 FLEET COMPLETE GPSAT&T 202.32
05/17/24-06/16/24 EOC MIFIAT&T 160.96
05/17/24-06/16/24 CITY HALL MIFIAT&T 123.72
05/17/24-06/16/24 EOC PHONES LINESAT&T 109.07
APR'24 ENERGOV & GISJOSE RUEL FABELLA DIRA 2,000.00
MAY'24 ENERGOV & GISJOSE RUEL FABELLA DIRA 1,200.00
13 Description (Item)Vendor Name Amount
MAY'24 IT OFFICE SUPPLIESSTAPLES ADVANTAGE 244.46
FY24-25 1PASSWORD BUSINESS 15 USERSSHI INTERNATIONAL CORP 852.00 GOTO RESOLVE PREMIUMGOTO TECHNOLOGIES USA, INC 224.13
INFORMATION TECHNOLOGY TOTAL: 16,246.25

NON-DEPARTMENTAL
JUN'24 - RECORDS OFF SITE STORAGECERTIFIED RECORDS MANAGEMENT 508.08 MAY'24 - COPY&BREAKROOM SUPPLIES NON DEPARTMENTALSTAPLES ADVANTAGE 362.72 JUL-SEP'24 35 PLAYA CIR MASTER HOA FEESALISO VIEJO COMMUNITY ASSOCIATION 134.39 JUL-SEP'24 38 COLONIAL WAY HOA FEESALISO VIEJO COMMUNITY ASSOCIATION 148.62 JUL-SEP'24 89 PLAYA CIR MASTER HOA FEESALISO VIEJO COMMUNITY ASSOCIATION 164.39 JUN'24 STORAGE UNIT RENT #535ALISO VIEJO SELF STORAGE 450.00 JUN'24 PVM VISTA PARK MAINTENANCEPV MAINTENANCE INC 1,486.00 FY24-25 ASCAP MUSIC LICENSEASCAP 441.00
JUL'24 RICOH C5300S - LEASE (2624)RICOH USA 609.90
JUL'24 RICOH C5300S - LEASE INTEREST (2624)RICOH USA 84.30 JUL'24 38 COLONIAL WAY HOA FEESVANTIS MAINTENANCE CORPORATION 374.79 6/20 CH BOTTLED WATER SERVICEDS SERVICES OF AMERICA, INC 124.27 BUS CARDS - AV RANCH & AV RECIPROMOTEU.COM INC 135.66
JUN'24 RICOH 2504 BACK OFFICE PRINTS (4542)RICOH USA 118.21 JUN'24 CH & STE 200 FIRST AID SUPPLIESCINTAS CORPORATION NO. 2 373.06 JUN'24 VISTA PARK LANDSCAPE MAINTENANCENIEVES LANDSCAPE INC 1,028.96 5/13/24-6/10/24 METER#1675 89 PLAYA CIR WATER SVCMOULTON NIGUEL WATER DIST 54.07 AE 5/28 HARBOR STATION HOA - 89 PLAYAUS BANK PURCHASING CARD PROGRAM 191.01 AE 5/28 HARBOR STATION HOA - 35 PLAYAUS BANK PURCHASING CARD PROGRAM 191.01 MAY'24-6.07 HRS-PIO/MAYORS OUTREACHKYRSTI NICOLE ASHMALL 546.30 JUN'24-3.82 HRS-PIO/MAYORS OUTREACHKYRSTI NICOLE ASHMALL 343.80 EM 6/18 THE HOME DEPOT - SIKA SEALANT VISTA PARKUS BANK PURCHASING CARD PROGRAM 253.58 EM 6/18 BLISS CW - F150 CAR WASHUS BANK PURCHASING CARD PROGRAM 35.00 JUL'24 89 PLAYA CIR HOA FEESGLENWOOD MAINTENANCE CORPORATION 154.00 JUN'24 89 PLAYA CIR HOA FEE LATE CHGGLENWOOD MAINTENANCE CORPORATION 15.40 JUN'24 ACCT#2427 89 PLAYA CIR ELECTRICITYSO CAL EDISON 52.58 LL 5/22 J&M TROPHIES AV LAPEL PINS/500 QTYUS BANK PURCHASING CARD PROGRAM 1,379.20 LL 6/19 RALPHS - DISPOSABLE PANS 6/19 CC MTGUS BANK PURCHASING CARD PROGRAM 25.82 LL 5/29 READY REFRESH 4/25-5/24 FILTRATION/SVCUS BANK PURCHASING CARD PROGRAM 60.08 LL 6/05 INSTACART SMART&FINAL TIP 6/5 CC MTGUS BANK PURCHASING CARD PROGRAM 9.01 LL 6/06 INSTACART SMART&FINAL CHIPS REFUND 6/5 MTGUS BANK PURCHASING CARD PROGRAM (21.99) LL 6/11 OC WINEMART-SANDWICHES 6/11 AVCA MTGUS BANK PURCHASING CARD PROGRAM 94.19 LL 6/19 PANDA EXPRESS 6/19 CC MTGUS BANK PURCHASING CARD PROGRAM 175.00 LL 6/05 INSTACART SMART&FINAL CHPS & DRNKS 6/5 MTGUS BANK PURCHASING CARD PROGRAM 55.00 LL 6/18 MOSLOW WOOD PRODS-CHERRY FRAMESUS BANK PURCHASING CARD PROGRAM 426.78 LL 6/05 OC WINEMART-SANDWICHES 6/5 CC MTGUS BANK PURCHASING CARD PROGRAM 187.38 MAY'24 89 PLAYA CIR HOA FEE SHORTAGE/LATE CHGSGLENWOOD MAINTENANCE CORPORATION 25.55 ACCT#64101 VISTA WATER SVCMOULTON NIGUEL WATER DIST 1,184.64 RETROACTIVE WORKERS COMP ADJUSTMENTCALIFORNIA JPIA (1,667.00) RETROACTIVE GENERAL LIABILITY ADJUSTMENTCALIFORNIA JPIA 384.00 FY 2024-25 WORKERS COMPCALIFORNIA JPIA 79,879.00
FY 2024-25 GENERAL LIABILITY PREMIUMCALIFORNIA JPIA 242,335.00 FY 2024-25 PROPERTY INSURANCE PROGRAMCALIFORNIA JPIA 65,121.00 FY24-25 SCAG DUESSCAG 7,160.00
LS 6/05 WALMART - CHAIRSUS BANK PURCHASING CARD PROGRAM 517.10 NON-DEPARTMENTAL TOTAL: 405,710.86
C. S. ADMINISTRATION
SUMMER'24 PROMO ITEM AVRRED SWAG INC 1,408.77
MAY'24 SMP FUND R&CS CONTRIB TRANSPORTATION SVCCABCO YELLOW INC 906.50 GRAPHIC DESIGN-2024 AV FALL BROCHUREMICHAEL R JUE 3,881.25 JUL'24-DP-HEALTH PREMIUMCALPERS HEALTH 157.00
JUL'24-HW-HEALTH PREMIUMCALPERS HEALTH 157.00
JUN'24 AVR 2 POSTER BOARDSWESTAMERICA COMMUNICATIONS INC 635.32 AVR RENTAL BROCHURE PRINTINGWESTAMERICA COMMUNICATIONS INC 1,986.91 JB 5/22 SCHOOL NEWS - SUMMER CAMP MARKETINGUS BANK PURCHASING CARD PROGRAM 100.00 JB 5/28 CHAUPAIN BAKERY - CDC STAFF TRAININGUS BANK PURCHASING CARD PROGRAM 87.00 JB 5/28 RALPHS - CDC STAFF TRAININGUS BANK PURCHASING CARD PROGRAM 14.06 JNL 5/25 AVILAS EL RANCHITO-STAFF TRAINING MEALUS BANK PURCHASING CARD PROGRAM 213.12 JNL 5/25 SGT PEPS - STAFF TRAINING MEALUS BANK PURCHASING CARD PROGRAM 109.90 14 Description (Item)Vendor Name Amount
JNL 5/25 CHICK FIL A - STAFF TRAINING MEALUS BANK PURCHASING CARD PROGRAM 184.94 JNL 5/25 OC WINEMART - STAFF TRAINING MEAL OCWMUS BANK PURCHASING CARD PROGRAM 124.86 JNL 5/25 BOARD & BREW - STAFF TRAINING MEALUS BANK PURCHASING CARD PROGRAM 110.00 JNL 5/25 PREMIER LINENS - TABLE CLOTHSUS BANK PURCHASING CARD PROGRAM 1,011.62 LL 5/23 FB META ADS-AVR SPRINGUS BANK PURCHASING CARD PROGRAM 15.95 C. S. ADMINISTRATION TOTAL: 11,104.20

IGLESIA PARK
DEC'23-MAR'24 IGLESIA PARK LOT LINE ADJUSTMENTCIVIL SOURCE, AN NV5 COMPANY 3,355.00 MAY'24 IGLESIA PARK LOT LINE ADJUSTMENTCIVIL SOURCE, AN NV5 COMPANY 4,112.50 MAY'24 IGLESIA LANDSCAPE MAINTENANCE -VALVE REPAIRNIEVES LANDSCAPE INC 1,064.60 MAY'24 ACCT#7997 IGLESIA PARK ELECTRICITYSO CAL EDISON 275.24 MAY'24 PVM IGLESIA PARK MAINTENANCEPV MAINTENANCE INC 4,188.78 JUN'24 PVM IGLESIA PARK MAINTENANCEPV MAINTENANCE INC 1,649.75 JUN'24 PVM IGLESIA PARK MAINTENANCEPV MAINTENANCE INC 8,200.00 JUN'24 IGLESIA LANDSCAPE MAINTENANCENIEVES LANDSCAPE INC 6,846.00 MAY'24 IGLESIA LANDSAPE MAINTENANCE - VALVE RAISENIEVES LANDSCAPE INC 625.32 MAY'24 MTR#4114 IGLESIA PARK WATEREL TORO WATER DISTRICT 594.31 MAY'24 MTR#3499 IGLESIA PARK WATEREL TORO WATER DISTRICT 668.45 EM 6/18 THE HOME DEPOT -CATCH BASIN KIT IGLESIA PKUS BANK PURCHASING CARD PROGRAM 75.39 EM 6/18 THE HOME DEPOT -CATCH BASIN KIT IGLESIA PKUS BANK PURCHASING CARD PROGRAM 272.47 IGLESIA PARK TOTAL: 31,927.81

IGLESIA BUILDING
MAY'24 ACCT#7997 IGLESIA BLDG ELECTRICITYSO CAL EDISON 1,464.57 JUN'24 IGLESIA JANITORIAL SERVICESTEAM ONE MANAGEMENT SERVICES 950.00 JUN'24 IGLESIA JANITORIAL SUPPLIESBRADY INDUSTRIES OF CALIFORNIA LLC 296.59 MAY'24 MTR#5016 IGLESIA PARK BLDG WATEREL TORO WATER DISTRICT 240.82 KB 5/28 THE HOMEDEPOT - BLDG ALARM BATTERY IGLESIAUS BANK PURCHASING CARD PROGRAM 64.62 IGLESIA BUILDING TOTAL: 3,016.60

IGLESIA PARK COMMUNITY CENTER
MAY'24 ELEMENTARY & TEEN KEYSTONE PROGRAMBOYS & GIRLS CLUB OF CAPISTRANO VALLEY 12,348.27 IGLESIA PARK COMMUNITY CENTER TOTAL: 12,348.27

PLANNING
ENERGOV REPORTTYLER TECHNOLOGIES-INCODE DIVISION 800.00 MAY'24 ENERGOV UPDATETYLER TECHNOLOGIES-INCODE DIVISION 3,250.00 JUL'24-MF-HEALTH PREMIUMCALPERS HEALTH 157.00
SK 6/07 EB CASE CRUNCH - LUNCH AND LEARNUS BANK PURCHASING CARD PROGRAM 20.00 SK 6/15 COURTYARD NCDA CONFERENCE HOTEL FARE - RRUS BANK PURCHASING CARD PROGRAM 1,765.38 SK 5/23 CVENT ANNUAL APA CA CONF REG - MDUS BANK PURCHASING CARD PROGRAM 650.00 PLANNING TOTAL: 6,642.38

BUILDING
FY23-24 BUILDING SCANNINGECS IMAGING INC 16,863.09
MAY'24 CAA CONTRACT SERVICES - BUILDINGCHARLES ABBOTT ASSOC INC 61,486.55 MAY'24 PLNG OFFICE SUPPLIESSTAPLES ADVANTAGE 192.89
BUILDING TOTAL: 78,542.53

CODE ENFORCEMENT
MAY'24 CAA CONTRACT SERVICES - CODE ENFORCEMENTCHARLES ABBOTT ASSOC INC 8,670.00 SK 6/08 LIFE STORAGE FOR CONFISCATED TACO STANDUS BANK PURCHASING CARD PROGRAM 631.20 CODE ENFORCEMENT TOTAL: 9,301.20

ENGINEERING (GENERAL)
JUN'24 WAREHOUSE LEASEPV MAINTENANCE INC 1,035.00
JUN'24 SOUTH OC ENG MEETING REIMB - QLQUANG LE 30.00
05/17/24-06/16/24 PUBLIC WORKS TABLETSAT&T 120.72
QL 6/23 WATER - ITE CONFERENCEQUANG LE 4.70
QL 6/26 BUS - ITE CONFERENCEQUANG LE 7.00
QL 6/26 BREAKFAST - ITE CONFERENCEQUANG LE 13.30
QL 6/23 DINNER - ITE CONFERENCEQUANG LE 31.92
QL 6/26 PARKING - ITE CONFERENCEQUANG LE 70.00
QL 6/23 BUS - ITE CONFERENCEQUANG LE 7.00
MAY'24 NPDESCHARLES ABBOTT ASSOC INC 18,382.50
MAY'24 SOLID WASTE SERVICESCHARLES ABBOTT ASSOC INC 4,020.00 MAY'24 ENG OFFICE SUPPLIESSTAPLES ADVANTAGE 550.37
SP 5/28 EB CEAOC LUNCH MEETING JUNE 24US BANK PURCHASING CARD PROGRAM 118.00 15 Description (Item)Vendor Name Amount
SP 5/23 APWA MEMBERSHIP RENEWALUS BANK PURCHASING CARD PROGRAM 297.50 ENGINEERING (GENERAL) TOTAL: 24,688.01

STREET MAINTENANCE
MAY'24 PVM STREET MAINTENANCE MOE TAXPV MAINTENANCE INC 12,548.90 MAY'24 ANHS GRADUATION EVT-PVM SUPPORTPV MAINTENANCE INC 7,464.38 MAY'24 STREET INVESTIGATIONCHARLES ABBOTT ASSOC INC 4,068.75 SP 6/20 ALMETEK-CATCH BASIN DRAIN TO OCEAN MARKERSUS BANK PURCHASING CARD PROGRAM 7,379.79 STREET MAINTENANCE TOTAL: 31,461.82

LAW ENFORCEMENT-OTHER
5/26-6/08/24 138 HRS-CROSSING GUARD SERVICESALL CITY MANAGEMENT SERVICES 4,271.10 05/17/24-06/16/24 PALS PHONE LINEAT&T 45.41
MAY'24 POLICE SERVICES OFFICE SUPPLIESSTAPLES ADVANTAGE 82.78 LAW ENFORCEMENT-OTHER TOTAL: 4,399.29
EOC
FY 23-24 EOC OPERATING SUPPLIESSTAPLES ADVANTAGE 6.00
MAY'24 EOC OFFICE SUPPLIESSTAPLES ADVANTAGE 31.90
DL 5/14 LIFE STORAGE - OFFSITE UNIT #961US BANK PURCHASING CARD PROGRAM 290.00 SL 6/13 AMAZON -FIRST AID KITS BLDG INSPECTOR KITSUS BANK PURCHASING CARD PROGRAM 252.70 SL 6/05 WALMART - CHAIRSUS BANK PURCHASING CARD PROGRAM 775.63 SL 6/22 QR CODE GENERATOR ACCOUNTUS BANK PURCHASING CARD PROGRAM 162.46 SL 6/16 AMAZON - FIRST AID KITS SHELTER TRAILERUS BANK PURCHASING CARD PROGRAM 96.88 EOC TOTAL: 1,615.57
GENERAL FUND TOTAL: 1,531,875.88
102 - GEN. FD-CITY HALL
JUL-SEP'24 CH MASTER HOA FEESALISO VIEJO COMMUNITY ASSOCIATION 2,035.92 2,035.92

NON-DEPARTMENTAL
JUN'24 CH INTERIOR PLANT MANTENANCEFOSTERS' GARDENS INC 115.00 JUN'24 CH JANITORIAL SUPPLESBRADY INDUSTRIES OF CALIFORNIA LLC 1,030.42 JUN'24 CH JANITORIAL SERVICESTEAM ONE MANAGEMENT SERVICES 2,700.00 JUN'24 CH LANDSCAPE MAINTENANCENIEVES LANDSCAPE INC 678.00 5/30/24-6/28/24 METER#16122180 CH GAS SVCTHE GAS COMPANY 200.95 KB 6/19 ZORO - PLUMBING TRAP PRIMMER CHUS BANK PURCHASING CARD PROGRAM 104.79 ACCT#65408/65407/65406 CH WATER SVCMOULTON NIGUEL WATER DIST 640.43 NON-DEPARTMENTAL TOTAL: 5,469.59
GEN. FD-CITY HALL TOTAL: 7,505.51
103 - GF-AV RECREATION SERVICES
REFUND_RESTORATIVE YOGA (SRR060)_B.PEGAHIBAMIK PEGAHI 80.00 REFUND FEE_RESTORATIVE YOGA (SRR060)_B.PEGAHIBAMIK PEGAHI (20.00)

60.00 RECREATION SERVICES
3/12/24 AVR INSPECTION FM-200 SEMI ANNUALMASTER PROTECTION LP 350.00 MAY'24 CREDIT CARD SERVICE FEES - POSCSG FORTE PAYMENTS, INC 753.10 MAY'24 CREDIT CARD SERVICE FEES - WEBCSG FORTE PAYMENTS, INC 4,406.49 MAY'24 AVR MAINTENANCEPV MAINTENANCE INC 123.00
SPRING2024-SPG039/040 MULTISPORT-15 PARTICIPANTSSKYHAWKS SPORTS ACADEMY, LLC 963.00 5/04 AVR LINEN DRY CLEANINGPRESTIGIOUS CLEANERS LLC 217.73 DEPARTMENT UNIFORM ORDER AVRMANHATTAN STITCHING COMPANY INC 1,729.39 6/05 AVR BOTTLED WATER SERVICEDS SERVICES OF AMERICA, INC 146.46 SEP'23 AT&T AVR INTERNET SERVICEAT&T 1,009.89
APR'24 GCF SECURITY SERVICESLYONS SECURITY SERVICE IN 1,212.75 MAY'24 AVR EVENT SECURITY SERVICESLYONS SECURITY SERVICE IN 4,095.00 SPRING2024-SPG032/028/030 GYMNASTICS-16 PARTICTUMBLE-N-KIDS, INC 786.60 JUN'24 AVR INTERIOR PLANT MAINTENANCEFOSTERS' GARDENS INC 110.00 MAY'24 AVR HVAC PREVENTATIVE MAINTENANCEHARBOR POINTE AIR CONDITIONING & CONTROL SYSTEMS, … 2,938.09 SPRING2024-SPG086 SOCCER-5 PARTICIPANTSBREAKTHROUGH SPORTS LLC 180.00 SUMMER2024-SRR084 BARBELL CLASS-1 PARTICIPANTL & O ALISO VIEJO, LLC 14.00 SUMMER2024-PAE018/072 ENRICHMENT -20 PARTICIPANTSLAURELINDA HAUKSSON 2,432.40 SUMMER2024-PAB001/PAK001/PAM001 SWIM-16 PARTICIPANPREMIER AQUATIC SERVICES 1,899.75 SUMMER2024-VOC001 VOLLEYBALL-10 PARTICIPANTSEDWIN RATLEDGE 900.00 16 Description (Item)Vendor Name Amount
SUMMER2024-BTS010 ALL SPORTS CAMP - 8 PARTICIPANTSBREAKTHROUGH SPORTS LLC 1,051.20 SUMMER2024-TNK001 GYNMNASTICS - 8 PARTICIPANTSTUMBLE-N-KIDS, INC 1,221.00 SUMMER2024-SSS001 SOCCER - 4 PARTICIPANTSROUND STAR WEST, LLC 744.00 SUMMER2024-SKY008 FOOTBALL - 13 PARTICIPANTSSKYHAWKS SPORTS ACADEMY, LLC 1,541.40 SUMMER2024-SRR078 PICKLEBALL - 5 PARTICIPANTSL & O ALISO VIEJO, LLC 245.00 SUMMER24-JAT001 TENNIS - 20 PARTICIPANTSJOHN DAVID ALLEN JR 1,506.00 SUMMER24-BTS005/BTS001 BASKETBALL-26 PARTICIPANTSBREAKTHROUGH SPORTS LLC 4,232.40 SUMMER24-SKY005 LACROSSE - 7 PARTICIPANTSSKYHAWKS SPORTS ACADEMY, LLC 844.80 SUMMER24-VOC002 VOLLEYBALL - 7 PARTICIPANTSEDWIN RATLEDGE 630.00 SUMMER24-PAK002/PAM002 SPLASH CAMP-22 PARTICIPANTSPREMIER AQUATIC SERVICES 5,434.50 SUMMER24-CNJ002/CNJ003/CNJ001 CODING-27 PARTICIPANM B B & D LLC 5,691.00 SUMMER24-PWT001/PWT002/PWT003 LEGOS-24 PARTICITIMOTHY DANA BOWEN 4,296.00 SUM24-PAE012/013/036/094/074/053/096/058 78-PARTIPLAURELINDA HAUKSSON 11,974.20 OCT'23 AT&T AVR INTERNET SERVICE - PREV SHORT PAIDAT&T 241.77 MAY'24 RCS OFFICE SUPPLIESSTAPLES ADVANTAGE 919.01
JUN'24 AVR JANITORIAL SUPPLESBRADY INDUSTRIES OF CALIFORNIA LLC 1,166.74 MAY'24 ACCT#4551 FARM ELECTRICITYSO CAL EDISON 332.92
MAY'24 ACCT#6247 AVR ELECTRICITYSO CAL EDISON 2,558.31
MAY'24 RENEWABLE FARMS - UTILITIESAARON FLORA (649.74)
APR'24 RENEWABLE FARMS - MAINTENANCE DEDUCT REIMBAARON FLORA 106.27 MAY'24 RENEWABLE FARMS - 90% GROSS REVENUEAARON FLORA 14,017.50 5/06/24-6/05/24 AVR ALARM/POTS LINEAT&T 1,242.06
JUN'24 PVM AVR MAINTENANCEPV MAINTENANCE INC 398.00
JUN'24 AT&T AVR INTERNET SERVICEAT&T 1,009.89
05/17/24-06/16/24 REC TABLETAT&T 40.24
05/17/24-06/16/24 REC PHONE LINESAT&T 181.64
JUN'24 AVR FIRST AID SUPPLIESCINTAS CORPORATION NO. 2 504.81 SUMMER24-SRR011/007/009 GYMNASTICS-21 PARTICIPANTSTUMBLE-N-KIDS, INC 831.60 SUMMER24-SRR159/156/153/150 TENNIS-19 PARTICIPANTSJOHN DAVID ALLEN JR 540.00 SUM24-PAE106/45/28/100/63/14/103/39/42/69-81PARTICLAURELINDA HAUKSSON 13,258.00 SUMMER24-VOC003 VOLLEYBALL-10 PARTICIPANTSEDWIN RATLEDGE 996.00 SUMMER24-TUT006 LITERARY CAMP-6 PARTICIPANTSFIT FIRST LLC 756.00 SUMMER24-BTS006/BTS002 BASKETBALL-15 PARTICIPANTSBREAKTHROUGH SPORTS LLC 2,490.00 SUMMER24-EVD001 ART CAMP-11 PARTICIPANTSERNA VAN DYK 1,377.00 SUMMER24-SKY011 GOLF CAMP-10 PARTICIPANTSSKYHAWKS SPORTS ACADEMY, LLC 1,128.00 SUMMER24-TTS001 CAMP BROADWAY-10 PARTICIPANTSJENNIFER BALES 1,290.00 SUMMER24-BCL001/LMS009 BEACH CAMP-2 PARTICIPANTSBEELER AQUATICS, INC 711.90 SUMMER24-PAB003/PAK003/PAM003 SPLASH CAMP-21 PARTIPREMIER AQUATIC SERVICES 5,199.75 SUMMER24-SRR004 MUSIC-6 PARTICIPANTSMUSIC MOVES ACADEMY INC 36.00 SUMMER24-PAB004/PAK004/PAM004 SPLASH CAMP-21 PARTIPREMIER AQUATIC SERVICES 5,226.75 SUMMER24-BST011 YOUTUBE MASTERS - 5 PARTICIPANTSBRAINSTORM STUDIOS, LLC 941.40 SUMMER24-SOC003 DANCE+1LATE - 13 PARTICIPANTSKIMBERLY DOWNEY ESMOND 1,433.80 SUMMER24-BTS015/013 SOCCER - 28 PARTICIPANTSBREAKTHROUGH SPORTS LLC 4,615.20 SUMMER24-SKT001 SKATEBOARDING-9 PARTICIPANTSCORAL BAY HOME LOANS 1,353.00 SUM24-PAE16/17/93/33/109/300/49/76/08/02-106 PARTLAURELINDA HAUKSSON 15,453.24 SUMMER24-BCL002 BEACH CAMP -1 PARTICIPANTBEELER AQUATICS, INC 371.70 SUMMER24-VOC004 VOLLEYBALL - 15 PARTICIPANTSEDWIN RATLEDGE 1,542.00 SUMMER24-SRR090 RENAISSANCE CLUBSPORT-3 PARTICIPANL & O ALISO VIEJO, LLC 42.00 JUN'24 AVR LANDSCAPE MAINTENANCENIEVES LANDSCAPE INC 2,262.67 JB 6/12 SUBWAY - CDC WEEK 2 STAFF LUNCHUS BANK PURCHASING CARD PROGRAM 34.95 JB 6/05 SUBWAY - CDC WEEK 1 STAFF LUNCHUS BANK PURCHASING CARD PROGRAM 41.43 JB 6/07 DISCOVERY SCIENCE CTR-6/06 CDC EXCURSIONUS BANK PURCHASING CARD PROGRAM 453.00 JB 6/17 MEDIEVAL TIMES BALANCE-6/20 CDC EXCURSIONUS BANK PURCHASING CARD PROGRAM 1,558.50 JB 6/01 THE HOME DEPOT - BLACK TRASH BAGSUS BANK PURCHASING CARD PROGRAM 26.91 JNL 5/25 RALPHS - ICE FOR RENTALUS BANK PURCHASING CARD PROGRAM 17.23 JNL 5/25 RALPHS - ICE FOR RENTALUS BANK PURCHASING CARD PROGRAM 25.80 JNL 5/25 CANON DIRECT - CAMERA LENSUS BANK PURCHASING CARD PROGRAM 323.24 KB 5/21 THE HOMEDEPOT - MAINTENANCE SUPPLIES AVRUS BANK PURCHASING CARD PROGRAM 126.39 KB 6/18 THE HOMEDEPOT - TRASH REPAIR HARDWARE AVRUS BANK PURCHASING CARD PROGRAM 82.57 LM 6/19 AUNT MOLLYS BARRE TRASH BARREL REPLACEMENTUS BANK PURCHASING CARD PROGRAM 1,467.00 ACCT#105234/104936/104935/104986 RANCH WATER SVCMOULTON NIGUEL WATER DIST 1,322.90 ACCT#104519-104515 FARM WATER SVCMOULTON NIGUEL WATER DIST 329.70 6/05/24-6/19/24 WEEKS 1-3 CAMPS - FIELD USEFACILITRON, INC. 1,156.55 17 Description (Item)Vendor Name Amount
5/26-6/16 AVR LINEN DRY CLEANINGPRESTIGIOUS CLEANERS LLC 1,206.58 RECREATION SERVICES TOTAL: 155,777.33
GF-AV RECREATION SERVICES TOTAL: 155,837.33
203 - GAS TAX

TRAFFIC ENGINEERING
MAY'24 TRAFFIC SIGNAL MONITORINGHARTZOG & CRABILL INC 3,058.29 MAY'24 STORM DRAIN CONDITION ASSESSMENTWOOD RODGERS, INC 18,473.75 TRAFFIC ENGINEERING TOTAL: 21,532.04

STREET MAINTENANCE
MAY'24 PVM STREET MAINTENANCE GAS TAXPV MAINTENANCE INC 48,113.22 JUN'24 ST LIGHTS & TRAFFIC CTRLRSSAN DIEGO GAS & ELECTRIC 2,677.81 MAY'24 ACCT#8254 TC1 ST LIGHTS ELECTRICITYSO CAL EDISON 4,186.17 JUN'24 PVM STREET MAINTENANCEPV MAINTENANCE INC 43,948.33 JUN'24 PVM STREET MAINT - PACIFIC PARK SINKHOLEPV MAINTENANCE INC 18,300.00 MAY'24 TRAFFIC SIGNAL MAINTENANCE ROUTINEBEAR ELECTRICAL SOLUTIONS INC 3,162.60 MAY'24 TRAFFIC SIGNAL MAINTENANCE RESPONSEBEAR ELECTRICAL SOLUTIONS INC 8,636.11 JUN'24 STREET SWEEPING SERVICESSCA OF CA LLC 8,668.66
JUN'24 DATABASE MAINT + 43 TICKETSUNDERGROUND SERVICE ALERT OF SOUTHERN CA 85.25 JUN'24 MEDIANS LANDSCAPE MAINTENANCENIEVES LANDSCAPE INC 1,586.00 MAY'24 MTR#5675 CALLE CORTEZ MEDIAN WATEREL TORO WATER DISTRICT 0.01 MAY'24 MTR#5675 CALLE CORTEZ MEDIAN WATEREL TORO WATER DISTRICT 228.01 JUN'24 ACCT#6377 LS2 ST LIGHTSSO CAL EDISON 1,301.82
JUN'24 ACCT#7241 LS1 ST LIGHTSSO CAL EDISON 17,501.55
ACCT#64613/64615/65346 MEDIANS WATER SVCMOULTON NIGUEL WATER DIST 796.68 STREET MAINTENANCE TOTAL: 159,192.22
GAS TAX TOTAL: 180,724.26
204 - MEASURE M

GEN-MEASURE M
MAY'24 SMP M2 FUND TRANSPORTATION SVCCABCO YELLOW INC 3,626.00 GEN-MEASURE M TOTAL: 3,626.00
MEASURE M TOTAL: 3,626.00
215 - PUBLIC SAFETY GRANTS

LAW ENFORCEMENT-OTHER
JUN'24 AUTOMATED FINGERPRINT IDENTIFICATION SYSTEMCOUNTY OF ORANGE 1,843.00 LAW ENFORCEMENT-OTHER TOTAL: 1,843.00
PUBLIC SAFETY GRANTS TOTAL: 1,843.00
225 - INTEGRATED WASTE MGMT FD

GEN-TECHNOLOGY GRANTS
MAY'24 CAA CONTRACT SERVICES - SB1383CHARLES ABBOTT ASSOC INC 1,720.00 GEN-TECHNOLOGY GRANTS TOTAL: 1,720.00
INTEGRATED WASTE MGMT FD TOTAL: 1,720.00
241 - TECHNOLOGY FUND

GEN-TECHNOLOGY GRANTS
JUN'24-CC MTGS 6/5 & 6/19 & ADMINERIC WINTER 883.76
GEN-TECHNOLOGY GRANTS TOTAL: 883.76
TECHNOLOGY FUND TOTAL: 883.76
251 - FEDERAL GRANTS

OTHER GRANTS
JAN-JUN'24 HAZARD MITIGATION PLAN CONSULTANT SVCSATLAS PLANNING SOLUTIONS 6,069.00 OTHER GRANTS TOTAL: 6,069.00

GEN-FEDERAL GRANT
89 PLAYA - VINYL FLOORING AND INSTALLBRIAN BINIASZ 9,736.00 89 PLAYA - PAINT DRYWALL BASE BOARDS PATCHING MISCASTRO PAINTING CO. INC 15,060.00 JUN'24 89 PLAYA - DEEP CLEANINGTEAM ONE MANAGEMENT SERVICES 400.00 KB 6/03 THE HOMEDEPOT - LIGHTING RETURN 89 PLAYAUS BANK PURCHASING CARD PROGRAM (18.30) 18 Description (Item)Vendor Name Amount
KB 6/03 THE HOMEDEPOT-DISHWASHER INSTALL CREDITUS BANK PURCHASING CARD PROGRAM (188.99) KB 6/03 THE HOMEDEPOT- THERMOSTAT RETURN 89 PLAYAUS BANK PURCHASING CARD PROGRAM (140.07) KB 5/22 THE HOMEDEPOT - PLUMBING SUPPLIES 89 PLAYAUS BANK PURCHASING CARD PROGRAM 13.43 KB 6/03 LOWES-DISHWASHER INSTALLATION KIT 89 PLAYAUS BANK PURCHASING CARD PROGRAM 15.42 KB 5/23 THE HOMEDEPOT - APPLIANCES 89 PLAYAUS BANK PURCHASING CARD PROGRAM 3,848.64 KB 5/29 THE HOMEDEPOT- LIGHTING/ELEC SUPPL 89 PLAYUS BANK PURCHASING CARD PROGRAM 288.34 KB 6/03 THE HOMEDEPOT - LIGHTING 89 PLAYAUS BANK PURCHASING CARD PROGRAM 30.13 KB 5/22 THE HOMEDEPOT - PLUMBING SUPPLIES 89 PLAYAUS BANK PURCHASING CARD PROGRAM 40.79 KB 6/03 THE HOMEDEPOT - MISC SUPPLIES 89 PLAYAUS BANK PURCHASING CARD PROGRAM 153.86 GEN-FEDERAL GRANT TOTAL: 29,239.25
FEDERAL GRANTS TOTAL: 35,308.25
261 - CITY FAC.-AQUATIC CENTER

GEN-AQUATIC CENTER
JUN'24 AQC HYDROJET WATER DRAIN LINES BY PUMPUNITED BUILDING AND DEVELOPMENT SERVICES LLC 1,498.00 MAY'24 AQC LANDSCAPE MAINTENANCE-IRRIGATION REPAIRNIEVES LANDSCAPE INC 135.00 MAY'24 AQC POOL CHEMICALS - CHLORINE & ACIDHASA INC 2,164.16 JUN'24 AQC POOL CHEMICALS - ACIDHASA INC 143.09
MAY'24 REIMB AQC 5/01 JACKRABBIT SERVICESPREMIER AQUATIC SERVICES 315.00 MAY'24 REIMB AQC 5/13 ALPHA WATER- POOL CHEMPREMIER AQUATIC SERVICES 151.39 MAY'24 REIMB AQC 5/21 LESLIE'S - TESTING REAGENTSPREMIER AQUATIC SERVICES 51.69 MAY'24 REIMB AQC 5/21 LESLIE'S - TESTING REAGENTSPREMIER AQUATIC SERVICES 74.32 MAY'24 REIMB AQC 5/13 ALPHA WATER- POOL CHEMPREMIER AQUATIC SERVICES 71.24 MAY'24 REIMB AQC 5/20 AMAZON-POOL NOODLESPREMIER AQUATIC SERVICES 62.48 MAY'24 REIMB AQC 5/20 AMAZON-PRIZES FOR GRAD BINPREMIER AQUATIC SERVICES 65.36 MAY'24 REIMB AQC 5/07 AMAZON - SUPPLIES SWIM PROGPREMIER AQUATIC SERVICES 84.33 MAY'24 REIMB AQC 5/31 GOOGLE ADD SPENDPREMIER AQUATIC SERVICES 447.00 MAY'24 REIMB AQC 5/31 FACEBOOK AD MARKETINGPREMIER AQUATIC SERVICES 620.21 JUN'24 ACCT#6701 AQC INTERNETCOX COMMUNICATIONS, INC 509.30 MAY'24 PVM AQC MAINTENANCEPV MAINTENANCE INC 550.00
JUN'24 PVM AQC MAINTENANCEPV MAINTENANCE INC 976.67
JUN'24 AQC JANITORIAL SERVICESTEAM ONE MANAGEMENT SERVICES 2,100.00 JUN'24 AQC LANDSCAPE MAINTENANCENIEVES LANDSCAPE INC 912.48 AE 5/27 NELMAR - GARDA CASHLINK BAGS FOR AQCUS BANK PURCHASING CARD PROGRAM 94.82 APR-JUN'24-AQ CTR-MTR#4987 ELECTRICITYALISO VIEJO BANQUET CENTER LLC 3,978.15 EM 6/14 THE HOME DEPOT - DRAIN SEALS AQCUS BANK PURCHASING CARD PROGRAM 74.30 EM 6/14 THE HOME DEPOT - DRAIN CLEANER AQCUS BANK PURCHASING CARD PROGRAM 40.24 EM 6/18 THE HOME DEPOT - SIKA SEALANT AQCUS BANK PURCHASING CARD PROGRAM 199.24 EM 6/18 THE HOME DEPOT - SIKA SEALANT AQCUS BANK PURCHASING CARD PROGRAM 253.58 KB 6/19 SCP DISTRIBUTORS - POOL EQUIP MAINT AQCUS BANK PURCHASING CARD PROGRAM 257.34 ACCT#64095/64096 AQC WATER SVCMOULTON NIGUEL WATER DIST 532.91 GEN-AQUATIC CENTER TOTAL: 16,362.30
CITY FAC.-AQUATIC CENTER TOTAL: 16,362.30
311 - STREET IMPROVEMENTS
ENTERPREISE REHAB - RETENTION RELEASEHARDY & HARPER INC 65,406.24 65,406.24

STREETS & HIGHWAYS
MAY'24 ENTERPRISE REHAB INSPECTION SERVICESCIVIL SOURCE, AN NV5 COMPANY 819.60 STREETS & HIGHWAYS TOTAL: 819.60
STREET IMPROVEMENTS TOTAL: 66,225.84
331 - CAPITAL IMPROVEMENTS

CAPITAL IMPROVEMENTS
MAY'24 IGLESIA PARK NEW PKG UNIT HVAC SYST INSTALLHARBOR POINTE AIR CONDITIONING & CONTROL SYSTEMS, … 10,620.51 CAPITAL IMPROVEMENTS TOTAL: 10,620.51
CAPITAL IMPROVEMENTS TOTAL: 10,620.51
332 - STORM WATER

DRAINAGE IMPROVEMENTS
JUN'24 PVM #091 DAIRY FORK WETLANDS MAINTENANCEPV MAINTENANCE INC 369.00 19 Description (Item)Vendor Name Amount
JUN'24 PVM WOOD CANYON WETLANDS MAINTENANCEPV MAINTENANCE INC 772.00 DRAINAGE IMPROVEMENTS TOTAL: 1,141.00
STORM WATER TOTAL: 1,141.00
731 - CFD 2005-01

TRUST FUND
FY 23-24 CFD ADMINISTRATION FEESTHE BANK OF NEW YORK 170.00 TRUST FUND TOTAL: 170.00
CFD 2005-01 TOTAL: 170.00
GRAND TOTAL: 2,013,843.64
Fund Summary
Payment AmountFund Expense Amount
101 - GENERAL FUND 1,531,875.881,531,875.88
102 - GEN. FD-CITY HALL 7,505.517,505.51
103 - GF-AV RECREATION SERVICES 155,837.33155,837.33
203 - GAS TAX 180,724.26180,724.26
204 - MEASURE M 3,626.003,626.00
215 - PUBLIC SAFETY GRANTS 1,843.001,843.00
225 - INTEGRATED WASTE MGMT FD 1,720.001,720.00
241 - TECHNOLOGY FUND 883.76883.76
251 - FEDERAL GRANTS 35,308.2535,308.25
261 - CITY FAC.-AQUATIC CENTER 16,362.3016,362.30
311 - STREET IMPROVEMENTS 66,225.8466,225.84
331 - CAPITAL IMPROVEMENTS 10,620.5110,620.51
332 - STORM WATER 1,141.001,141.00
731 - CFD 2005-01 170.00170.00
2,013,843.64Grand Total: 2,013,843.64
20 Accounts Payable Payable Dates: 06/07/2024 - 07/03/2024 7/3/2024 5:02:25 PM Page 10 of 12
Report Summary
Fund Summary
Payment AmountFund
101 - GENERAL FUND 1,531,875.88
102 - GEN. FD-CITY HALL 7,505.51
103 - GF-AV RECREATION SERVICES 155,837.33
203 - GAS TAX 180,724.26
204 - MEASURE M 3,626.00
215 - PUBLIC SAFETY GRANTS 1,843.00
225 - INTEGRATED WASTE MGMT FD 1,720.00
241 - TECHNOLOGY FUND 883.76
251 - FEDERAL GRANTS 35,308.25
261 - CITY FAC.-AQUATIC CENTER 16,362.30
311 - STREET IMPROVEMENTS 66,225.84
331 - CAPITAL IMPROVEMENTS 10,620.51
332 - STORM WATER 1,141.00
731 - CFD 2005-01 170.00
2,013,843.64Grand Total:

Account Summary
Payment AmountAccount Number Account Name
101-1203-000 ACCOUNTS RECEIVABLE 2,195.87
101-1301-000 PREPAID EXPENSES 3,005.70
101-2506-000 MEDICAL INSURANCE P… 22,709.35
101-2507-000 LIFE INSURANCE PAYABLE 1,439.57
101-2601-000 REFUNDABLE DEPOSIT 9,000.00
101-2602-000 PLANNING DEPOSIT 1,166.20
101-2603-000 ENGINEERING DEPOSIT 6,996.25
101-2606-000 C & D DEPOSIT 4,850.00
101-4-1101-4501-000 ADVERTISING & PROMO… 366.69
101-4-1101-4511-000 COMMUNICATION 237.11
101-4-1101-4520-000 MTGS/CONF./TRNG & D… 615.20
101-4-1501-4206-000 MEDICAL INSURANCE 202.19
101-4-1501-4225-000 VEHICLE/CELL 98.96
101-4-1501-4511-000 COMMUNICATION 95.85
101-4-1501-4520-000 MTGS/CONF./TRNG & D… 526.70
101-4-1501-4521-000 MEMBERSHIP & DUES 200.00
101-4-1502-4302-000 ECONOMIC DEVELOPM… 5,902.00
101-4-1502-4781-000 C.S-OTHER 797,621.10
101-4-1503-4309-000 OTHER CONTRACTUAL S… 290.82
101-4-1503-4520-000 MTGS/CONF./TRNG & D… 606.06
101-4-1601-4520-000 MTGS/CONF./TRNG & D… 2,328.59
101-4-1601-4521-000 MEMBERSHIP & DUES 475.00
101-4-1601-4601-000 SUPPLIES 13.13
101-4-2101-4304-000 LEGAL SERVICES 27,160.20
101-4-2101-4532-000 SPECIAL PROJECTS 2,351.90
101-4-2101-4735-000 LITIGATION 74.40
101-4-2501-4301-000 PROFESSIONAL SERVICES 3,963.56
101-4-2501-4309-000 OTHER CONTRACTUAL S… 378.69
101-4-3101-4301-000 PROFESSIONAL SERVICES 5,383.34
101-4-3101-4305-000 TECHNOLOGY SERVICES 9,542.32
101-4-3101-4481-000 COMPUTER EXPENSE 1,076.13
101-4-3101-4601-000 SUPPLIES 244.46
101-4-3501-4301-000 PROFESSIONAL SERVICES 890.10
101-4-3501-4422-000 EQUIP RENTAL LEASE - P… 609.90
101-4-3501-4431-000 BUILDING & GROUND M… 5,458.99
101-4-3501-4471-000 RENT 958.08
101-4-3501-4513-000 PRINTING 253.87
101-4-3501-4517-000 VEHICLE MAINTENANCE 35.00
101-4-3501-4521-000 MEMBERSHIP & DUES 7,601.00
21 Accounts Payable Payable Dates: 06/07/2024 - 07/03/2024 7/3/2024 5:02:25 PM Page 11 of 12
Account Summary
Payment AmountAccount Number Account Name
101-4-3501-4522-000 INSURANCE EXPENSES 386,052.00
101-4-3501-4542-000 INTEREST EXPENSE - LEA… 84.30
101-4-3501-4601-000 SUPPLIES 860.05
101-4-3501-4612-000 OPERATING SUPPLIES 2,907.57
101-4-4101-4206-000 MEDICAL INSURANCE 314.00
101-4-4101-4501-000 ADVERTISING & PROMO… 8,028.20
101-4-4101-4520-000 MTGS/CONF./TRNG & D… 843.88
101-4-4101-4524-000 RECREATION-SENIOR TR… 906.50
101-4-4101-4531-000 COMMUNITY OUTREACH 1,011.62
101-4-4102-4411-000 UTILITIES 1,538.00
101-4-4102-4431-000 BUILDING & GROUND M… 30,389.81
101-4-4103-4411-000 UTILITIES 1,705.39
101-4-4103-4431-000 BUILDING & GROUND M… 1,311.21
101-4-4104-4529-000 REC-YOUTH PROGRAMS 12,348.27
101-4-4401-4206-000 MEDICAL INSURANCE 157.00
101-4-4401-4305-000 PLANNING TECHNOLOGY… 4,050.00
101-4-4401-4520-000 MTGS/CONF./TRNG & D… 2,435.38
101-4-4402-4513-000 PRINTING 16,863.09
101-4-4402-4601-000 SUPPLIES 192.89
101-4-4402-4751-000 C.S-BUILDING 61,486.55
101-4-4403-4761-000 C.S-CODE ENFORCEMENT 9,301.20
101-4-4501-4471-000 RENT 1,035.00
101-4-4501-4520-000 MTGS/CONF/TRNG & D… 281.92
101-4-4501-4521-000 MEMBERSHIP & DUES 297.50
101-4-4501-4601-000 SUPPLIES 550.37
101-4-4501-4612-000 OPERATING SUPPLIES 120.72
101-4-4501-4701-000 NPDES 18,382.50
101-4-4501-4702-000 AB939-SOLID WASTE 4,020.00
101-4-4503-4771-000 C.S-STREET MAINTENAN… 31,461.82
101-4-5102-4511-000 COMMUNICATION 45.41
101-4-5102-4612-000 OPERATING SUPPLIES 82.78
101-4-5102-4721-000 C.S-CROSSING GUARDS 4,271.10
101-4-5401-4471-000 RENT 290.00
101-4-5401-4612-000 OPERATING SUPPLIES 1,325.57
102-1301-000 PREPAID EXPENSES 2,035.92
102-4-3501-4411-000 UTILITIES 841.38
102-4-3501-4431-000 BUILDING & GROUND M… 4,628.21
103-34161 CONTRACT CLASSES 80.00
103-34169 REFUNDS -20.00
103-4-4105-4305-000 TECHNOLOGY SERVICES 3,503.61
103-4-4105-4309-000 OTHER CONTRACTUAL S… 107,337.14
103-4-4105-4411-000 UTILITIES 3,881.21
103-4-4105-4431-000 BUILDING & GROUND M… 11,652.46
103-4-4105-4451-000 FARM OPERATING EXPE… 15,349.40
103-4-4105-4511-000 COMMUNICATION 221.88
103-4-4105-4561-000 TAXES/FEES/PERMITS 5,159.59
103-4-4105-4570-000 CITY CAMP EXPENSE 2,087.88
103-4-4105-4601-000 SUPPLIES 1,963.46
103-4-4105-4612-000 OPERATING SUPPLIES 3,153.70
103-4-4105-4620-000 MINOR EQUIPMENT 1,467.00
203-4-4502-4301-000 PROFESSIONAL SERVICES 21,532.04
203-4-4503-4411-000 UTILITIES 26,692.05
203-4-4503-4771-000 C.S-STREET MAINTENAN… 123,831.51
203-4-4503-4772-000 C.S-STREET SWEEPING 8,668.66
204-4-6104-4309-000 OTHER CONTRACTUAL S… 3,626.00
215-4-5102-4803-000 PUBLIC SAFETY EQUIPM… 1,843.00
225-4-6141-4309-000 OTHER CONTRACTUAL S… 1,720.00
241-4-6141-4309-000 OTHER CONTRACTUAL S… 883.76
22 Accounts Payable Payable Dates: 06/07/2024 - 07/03/2024 7/3/2024 5:02:25 PM Page 12 of 12
Account Summary
Payment AmountAccount Number Account Name
251-4-6131-4309-000 OTHER CONTRACTUAL S… 6,069.00
251-4-6151-5920-000 ACQUISITION 29,239.25
261-4-6161-7402-000 COMPUTER EXPENSE 315.00
261-4-6161-7411-000 UTILITIES 5,020.36
261-4-6161-7421-000 BUILDING & GROUND M… 6,996.85
261-4-6161-7425-000 POOL MAINTENANCE 2,655.89
261-4-6161-7431-000 SUPPLIES 94.82
261-4-6161-7433-000 OPERATING SUPPLIES 212.17
261-4-6161-7441-000 MARKETING 1,067.21
311-2103-000 RETENTIONS PAYABLE 65,406.24
311-4-8301-5601-000 CONSTRUCTION MANA… 819.60
331-4-8701-5910-000 IMPROVEMENTS 10,620.51
332-4-8601-5911-000 REHABILITATION 1,141.00
731-4-7501-4542-000 INTEREST & FISCAL CHGS 170.00
Grand Total: 2,013,843.64
Project Account Summary
Payment AmountProject Account Key
**None** 1,982,083.59
0305911 772.00
0435910 10,620.51
0915911 369.00
10004309 6,069.00
1285601 819.60
9014612 524.41
9264520 246.25
9284520 30.00
9304520 338.95
9974570 2,087.88
ENG 2250 813.75
ENG 2252 803.75
ENG 2256 3,725.00
ENG 5003 236.25
ENG 5004 236.25
ENG 5005 236.25
ENG 5057 945.00
GPA-2024-00002 538.81
SB13834309 1,720.00
SDP-2023-00010 317.39
USE-2023-00028 310.00
Grand Total: 2,013,843.64
23 City of Aliso Viejo

AGENDA ITEM
DATE: July 17, 2024
TO: Mayor and City Council
FROM: Ann Eifert, Director of Financial Services/City Treasurer SUBJECT: TREASURER’S STATEMENT – MAY 2024
Recommended Action:

Receive and file the May 2024 Treasurer’s Statement.

Fiscal Impact:

No Fiscal Impact.

Background:

Per City policy, the Finance Department presents the monthly Treasurer’s Statement for the City Council’s review. This statement shows the cash balances for the various funds, with a breakdown of bank account balances, investment account balances and the effective yield earned from investments.

Discussion:

The City’s portfolio consists of investments in Certificates of Deposits, US Treasuries, US Federal Agencies, Corporate Bonds, and Local Agency Investment Fund (LAIF). All funds invested with LAIF are available for withdrawal within 24 hours.

The Treasurer’s Statement provides information regarding the City’s investment portfolio and activity during the reporting month. The City’s investment portfolio is in compliance with all government codes as well as the City’s investment policy. Interest is credited to the City’s bank account monthly and allocated among the City’s funds. The current portfolio provides sufficient cash flow liquidity to meet the upcoming operating expenses and spending requirements for the next 6 months.

Attachment:

1. May 2024 Treasurer’s Statement
24 TREASURER'S MONTHLY CASH STATEMENT

BEGINNING TRANSFERS ENDING

BALANCE RECEIPTS DISBURSEMENTS IN (OUT) BALANCE
GENERAL FUND 1,195,896.25 $ 4,493,831.86 $ 4,154,158.33 $ - $ 1,535,569.78$ TCRF 73,350.77 $ 73,350.77
GAS TAX FUND 1,112,312.15 $ 103,922.83 137,574.48 1,078,660.50 MEASURE M 1,536,573.45 $ 160,893.71 2,240.00 1,695,227.16 SB1-RMRA 534,449.45 $ 116,561.33 651,010.78 PUBLIC SAFETY GRANTS 293,328.79 $ 5,932.50 287,396.29 (1) AIR QUALITY IMPRVMNT FD 1,410,368.01$ 1,410,368.01 INTEGRATED WASTE MGMT FD 58,964.56$ 139,546.00 2,107.50 196,403.06 OTHER GRANTS (190,638.35) $ 219,322.67 11,400.00 17,284.32 TECHNOLOGY GRANT 362,229.66 $ 18,326.43 14,360.51 366,195.58 DEVELOPMENT IMPACT 1, 377,777.33$ 1,377,777.33
FEDERAL GRANTS (102,820.26) $ 18,972.80 36,305.53 (120,152.99) CITY FACILITY - AV CTR 179,758.92 $ 179,758.92 CITY FACILITY - AQUATIC CTR (107,276.36)$ 97,776.97 99,681.92 (109,181.31) STREET IMPROVEMENTS 39,760.90 $ 11,714.44 284,257.79 (232,782.45) (2) CAPITAL IMPROVEMENTS (33,700.00)$ 6,015.14 (39,715.14) (2) STORM WATER (612.43) $ 7,459.00 (8,071.43) (2) COP CAPITAL - $ - (2) COP (5,224.08) $ (5,224.08)
AV RANCH FOUNDATION 100.00 $ 100.00
CFD 2005-01 (4,919.87) $ 21,826.00 22,672.00 (5,765.87) RENEWABLE FARMS 2,699.52 $ 2,699.52
COMMUNITY TRUST 5,562.68 $ 5,562.68
TOTALS 7,737,941.09 $ 5,402,695.04 $ 4,784,164.70 $ - $ 8,356,471.43$ SUMMARY OF CASH:

DEMAND DEPOSITS: GENERAL ACCOUNT 979,927.26 $

INVESTMENTS: LOCAL AG ENCY INVESTMENT FD 7,376,544.17$
TOTAL CASH 8,356,471.43 $
Years to Maturity for May 2024 1.41
Weighted Average Yield for May 2024 3.970%
All investments are placed in accordance with the City of Aliso Viejo's Investment Policy.

The above summary provides sufficient cash flow liquidity to meet the next six month's estimated expenditures.

Other monies held include Cash with Fiscal Agent, Investments, Payroll and AV Center. 43,961,265.25$ Cash With Fiscal Agent COPS/CFD 2005-01 5,154,841.65
Cash With Investment Advisor City Investments 35,860,832.96 AV Center 2,683,225.41
PR Account 259,514.85
Petty Cash 2,850.38
GRAND TOTAL OF CITY FUNDS 52,317,736.68 $
(1) Public Safety Grant includes the MDC and PVS Program Costs budgeted with SLESF funds. (2) Transfers in and out are done on a quarterly basis.

Street Improvements include the Slurry Seal, Traffic Management and Street Improvement Projects.

Capital Improvements include City Hall, AV Ranch, and other city facilities.

Storm Water includes the Dairy Fork and Wood Canyon Emergent Wetland Project.

CITY OF ALISO VIEJO
May 31, 2024
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31 Local Agency Investment Fund
P.O. Box 942809
Sacramento, CA 94209-0001
(916) 653-3001

CITY OF ALISO VIEJO

DIRECTOR OF FINANCIAL SVCS/ CITY TREAS
12 JOURNEY , #100
ALISO VIEJO, CA 92656
Account Number: 98-30-007
May 2024 Statement
Effective
Date
Transaction
Date
Tran
Type Confirm
Number
Web
Confirm
Number Authorized Caller Amount
5/10/2024 5/9/2024 RD 1753036 1713472 ANN EIFERT 3,000,000.00 5/21/2024 5/21/2024 RW 1753409 1713840 ANN EIFERT -250,000.00 5/30/2024 5/30/2024 RW 1753678 1714099 ANN EIFERT -1,500,000.00 Account Summary
Total Deposit: 3,000,000.00 Beginning Balance: 6,126,544.17 Total Withdrawal: -1,750,000.00 Ending Balance: 7,376,544.17 32 May 4.332
April 4.272
March 4.232
February 4.122
January 4.012
December 3.929
LAIF Apportionment Rate(2): 4.30
LAIF Earnings Ratio(2): 0.00011755619077389
LAIF Administrative Cost(1)*: 0.27
PMIA Average Life(1): 226
LAIF Fair Value Factor(1): 0.994191267
PMIA Daily(1): 4.22
PMIA Quarter to Date(1): 4.12
Treasuries

58.43%
Agencies

22.59%
Certificates of
Deposit/Bank Notes

8.84%
Time
Deposits

2.99%
Commercial
Paper

6.54%
Corporate
Bonds

0.41%
Loans

0.20%
Notes: The apportionment rate includes interest earned on the CalPERS Supplemental Pension Payment pursuant to Government Code 20825 (c)(1) and interest earned on the Wildfire Fund loan pursuant to Public Utility Code 3288 (a). *The percentage of administrative cost equals the total administrative cost divided by the quarterly interest earnings. The law provides that administrative costs are not to exceed 5% of quarterly EARNINGS of the fund. However, if the 13-week Daily Treasury Bill Rate on the last day of the fiscal year is below 1%, then administrative costs shall not exceed 8% of quarterly EARNINGS of the fund for the subsequent fiscal year.

Source:
(1) State of California, Office of the Treasurer
(2) State of Calfiornia, Office of the Controller
PMIA Average Monthly
Effective Yields(1)
PMIA/LAIF Performance Report
as of 6/05/24
Daily rates are now available here. View PMIA Daily Rates Quarterly Performance
Quarter Ended 03/31/24
Chart does not include $1,969,000.00 in mortgages, which equates to 0.001%. Percentages may not total 100% due to rounding.

Pooled Money Investment Account
Monthly Portfolio Composition (1)
4/30/24
$171.5 billion
33 City of Aliso Viejo

AGENDA ITEM
DATE: July 17, 2024
TO: Mayor and City Council
FROM: Ann Eifert, Director of Financial Services/City Treasurer SUBJECT: INVESTMENT POLICY FOR FISCAL YEAR 2024-25
Recommended Action:

Adopt a Resolution approving the Investment Policy for Fiscal Year 2024-25 and rescinding Resolution No. 2023-21 in its entirety.

Fiscal Impact:

The adoption of the Investment Policy will allow for the continual investment of the City’s idle cash, which will provide additional revenue to the City.

Background:

California Government Code Section 53646 and best management practices dictate that local agencies prepare and update an investment policy on an annual basis. The City’s Investment Policy complies with the California Government Code and the guidelines recommended by the State and California Municipal Treasurer’s Association.

The investment policy states the goals of the City’s investment activities, the types of investments allowed by the Government Code, and reporting requirements. The City’s investment goals are, in order of priority, safety, liquidity, and yield. The purpose of the Investment Policy is to identify the policies and procedures that enhance opportunities for a prudent and systematic investment process and to organize and formalize investment- related activities.

Discussion:

Submitted for Council’s review and adoption is the FY 2024-25 Investment Policy, its accompanying resolution, and an administrative policy containing guidelines for investments and internal control. Staff has consulted with the City’s investment advisor and is recommending increasing the maximum percentage of portfolio allowed for money market funds from 10% to 20%. This will allow the City to take advantage of higher 34

Page 2 of 2 ends

interest rates while still maintaining the same liquidity and safety as LAIF. There are no other significant changes to the proposed FY 2024-25 Investment Policy.

Attachments:

1. Resolution

2. Investment Policy & Investment Guidelines, Strategy & Internal Control – Clean

3. Investment Policy & Investment Guidelines, Strategy & Internal Control – Redline

4. Resolution No. 2023-21
35

Page 1 of 3 ends

RESOLUTION NO. 2024-___

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ALISO
VIEJO, CALIFORNIA, REPEALING RESOLUTION NO. 2023-21, AND ADOPTING AN INVESTMENT POLICY FOR FISCAL YEAR 2024-25
WHEREAS, Government Code Section 53600 et seq. sets forth the State of California’s policy with regard to the importance of the solvency and creditworthiness of each individual local agency and the protection thereof; and WHEREAS, the City of Aliso Viejo is a local agency subject to the provisions of Government Code Section 53600 et seq.; and
WHEREAS, Government Code Section 53646 requires local agencies, such as the City of Aliso Viejo to consider annually a statement of investment policy, after review and consideration at a public meeting; and
WHEREAS, at a regular public meeting of the City Council the Council considered a statement of investment policy for the City, entitled City of Aliso Viejo Statement of Investment Policy for Fiscal Year 2024-25attached hereto as Exhibit “A” and incorporated herein;

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ALISO VIEJO AS FOLLOWS:

Section 1. The statement of investment attached hereto as Exhibit “A” entitled City of Aliso Viejo Statement of Investment Policy for Fiscal Year 2024-25 is adopted as the City’s Investment Policy.

Section 2. Resolution No. 2023-21 is hereby repealed
Section 3. This Resolution shall be effective July 1, 2024.

Section 4. The City Clerk shall certify as to the adoption of this Resolution. 36 PASSED, APPROVED AND ADOPTED this 17th day of July, 2024. __________________________
Mike Munzing
Mayor
APPROVED AS TO FORM: ATTEST:

__________________________ ___________________________
Scott C. Smith, City Attorney Lauren Torres, Deputy City Clerk 37

Page 3 of 3 ends

STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.

CITY OF ALISO VIEJO )
I, LAUREN TORRES, Deputy City Clerk of the City of Aliso Viejo, California, DO HEREBY CERTIFY that the foregoing is the original of Resolution No. 2024-__ duly passed and adopted by the City Council of the City of Aliso Viejo at their regular meeting held on the 17th day of July, 2024, by the following roll call vote, to wit:

AYES:

NOES:

ABSENT:
___________________________

LAUREN TORRES

DEPUTY CITY CLERK
38 City of Aliso Viejo 2024-25 Investment Policy Page i EXHIBIT “A”

CITY OF ALISO VIEJO

STATEMENT OF INVESTMENT POLICY
FOR FISCAL YEAR 2024-25
AS ADOPTED July 17, 2024

CITY COUNCIL
Mayor Mike Munzing
Mayor Pro Tem Tiffany Ackley
Council Member Ross Chun
Council Member Max Duncan
Council Member Richard Hurt
39 City of Aliso Viejo 2024-25 Investment Policy Page ii

TABLE OF CONTENTS

Statement of Investment Policy 1
Objectives 1
Scope of Funds 2
Prudent Investor Standard 2
Investment Philosophy 2
Delegation of Authority 3
Public Trust 3
Ethics and Conflicts of Interest 3
Internal Investment Controls 4
Investment Policy Adoption 5
Indemnification of Investment Officials 5
Investment Portfolio Compliance 5
Reporting 6
Authorized and Suitable Investments 6
Ratings and Rating Agencies 8
Prohibited Investments 8
Collateralization 9
Investment Pools 9
Money Market Mutual Funds 9
Maturity Limits 10
Qualifications for Financial Institutions and Broker/Dealer’s 10 Diversification Guidelines and Risks 11
Safekeeping and Custody 12
Performance Standards and Evaluation 12
Qualifications and Continuing Education 12
APPENDIX A: Glossary of Terms
APPENDIX B: Qualified Broker/Dealers
APPENDIX C: Administrative Policy: Investment Guidelines, Strategy, and Internal Control
40

Page 1 ends

Statement of Investment Policy
This Statement of Investment Policy (“Policy”), as set forth by the City of Aliso Viejo (“City”), provides the guidelines for prudent investment of the City’s idle or reserve cash and outlines the policies essential to ensuring the safety and financial strength of the City’s investment portfolio.

This Policy is based on the principles of prudent money management and conforms to all applicable Federal and State Laws governing the investment of public funds. In instances in which the Policy is more restrictive than Federal or State Law, the Policy will supersede.

Objectives
It is the policy of the City to invest public funds in a manner which will provide for the preservation of capital while meeting the daily cash flow requirements of the City and attaining a market average rate of return within an acceptable and defined level of risk.

The Policy has three primary objectives, in order of priority:

1. Preservation of Capital (Safety) – the protection of principal is the foremost consideration when undertaking investment decisions that affect public funds. The objective is to mitigate credit risk and interest rate risk.

Credit Risk
Credit Risk is the risk of loss of principal due to the failure of the security issuer.

Credit Risk can be mitigated by:
 Limiting investments to the safest types of securities.  Pre-qualifying accountants, auditors, financial institutions, broker/dealers, financial advisors, and other outside consultants with which the City does business.  Diversifying the investment portfolio so that potential losses are minimized.

Interest Rate Risk
Interest rate risk is the risk that the market value of securities will fall due to a rise in general market interest rates. It is the policy of the City to hold individual securities to maturity in an effort to meet liquidity demands. Interest rate risk can be mitigated by:
 Holding individual securities to maturity - Structuring the investment portfolio so that securities mature to meet cash flow requirements for ongoing operations, thereby avoiding the need to sell securities on the open market prior to maturity.  Employing a laddering strategy whereby staggering maturities of individual securities so that bonds come due in increments, assuring an overall liquidity pattern.
 Limiting maturities of individual securities and the average maturity of the overall portfolio.

41 City of Aliso Viejo 2024-25 Investment Policy Page 2

2. Liquidity – the investment portfolio shall remain sufficiently liquid to meet all daily cash flow and operating requirements that may be reasonably expected or anticipated.

3. Return or Yield – attain a rate of return consistent with the primary objectives of safety and liquidity, throughout budgetary and economic cycles.

Scope of Funds
The investment policy applies to all financial assets and investment activities of the City, except for proceeds of debt issuance. Debt proceeds shall be invested in accordance with the “Permitted Investments” provisions for each specific bond indenture.

The Policy applies to the following funds and is accounted for in the City’s annual audited financial statements.

A. General Fund
B. Special Revenue Funds
C. Debt Service Funds
D. Capital Improvement Funds
E. Enterprise Funds
F. Internal Service Funds
G. Agency Funds

Prudent Investor Standard
The standard to be used by investment officials shall be that of a “prudent person” and shall be applied in the context of managing all aspects of the City’s investment portfolio The Prudent Investor Standard:

Governing bodies of local agencies or persons authorized to make investment decisions on behalf of those local agencies investing public funds pursuant to this chapter are trustees and therefore fiduciaries subject to the prudent investor standard. When investing, reinvesting, purchasing, acquiring, exchanging, selling, and managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency. Within the limitations of sections 16429.1 and 53600 through 53684 of the California Government Code and considering individual investments as a part of an overall strategy, a trustee is authorized to acquire investments as authorized by law.

Investment Philosophy
It is the investment philosophy of the City to make investment decisions based on an overall passive management style that embodies a prudent investor standard and such that investments are purchased to generally match expected future cash outflows and with the intent to hold until maturity.

Accordingly, the City’s conservative philosophy prohibits active trading and speculation; i.e., the purchase of securities with the intent to profit from favorable market changes in market prices or market conditions. Leveraging or borrowing money for the purpose of investing is specifically prohibited. However, the City may elect to sell a security prior to its maturity and 42 City of Aliso Viejo 2024-25 Investment Policy Page 3 record a capital gain or loss in order to improve the quality, liquidity, or yield of the portfolio in response to market conditions or City needs.

Delegation of Authority
The City’s Resolution No. 2003-018 appoints the Director of Financial Services to also serve as City Treasurer. The Treasurer, or his or her designee, has the authority to manage the City’s investment portfolio in accordance with California Government Code Sections 53600 and 53630 et seq. and all related State and Federal laws.

The Treasurer will provide prior written notification to the City Manager and City Council regarding the designation of responsibilities.

The Treasurer shall establish written procedures for the operation and management of the City’s investment portfolio consistent with this investment policy. The procedures should include reference to safekeeping, repurchase agreements, wire transfer agreements, banking service contracts, collateral or depository agreements, competitive bid process, and due diligence. Such procedures shall include explicit delegation of authority to persons responsible for investment transactions. No person may engage in an investment transaction, except as provided under the terms of this policy and the investment procedures established by the Treasurer and approved by the City Manager.

The City may also engage Securities and Exchange Commission registered external investment advisor to manage the City’s investment program.

Public Trust
All participants in the investment process shall act as custodians of public funds. Investment officials shall recognize that the investment portfolio is subject to public review and evaluation.

The overall program shall be designed and managed with a degree of professionalism that is worthy of public trust. In a diversified portfolio, it must be recognized that occasional measured losses are inevitable and must be considered in the context of the overall portfolio’s investment return, provided that adequate diversification has been implemented.

Ethics and Conflicts of Interest
Elected officials and employees of the City involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the investment program, or which could impair their ability to make impartial decisions under the Political Reform Act and Government Code Section 1090 et seq. Elected officials and employees shall disclose to the City Manager any material interests in financial institutions that conduct business with the City, and they shall further disclose any personal investment position or financial asset that could be related to the performance of the City’s investment program.

Elected officials and employees shall subordinate their personal investment transactions to those of the City particularly with regard to the time of purchases and sales.

Any firm proposing to provide any type of investment service to the City shall acknowledge their familiarity with the provisions of the Political Reform Act, Government Code Section 81000 et seq. and CA Code of Regulations 18110 et seq. and the provisions limiting contractual conflicts of interest under Government Code Section 1090 et seq. Any firm proposing to provide any type of investment service to the City shall also acknowledge their familiarity with and agree to abide by any Federal or State law, regulation, rule, or policy pertaining to or limiting campaign contributions by such firms, their employees, spouses, or agents. 43 City of Aliso Viejo 2024-25 Investment Policy Page 4 All persons, firms, broker/dealers, financial institutions, and advisors providing investment services or bond issue assistance shall disclose to the City Manager and the Treasurer all fee sharing, fee-splitting, and commission arrangements with other entities or persons prior to the City agreeing to buy an investment or issue bonds.

Internal Investment Controls
The Treasurer will implement and maintain a system of internal investment controls and segregate responsibilities of investment functions in order to prevent fraud, theft, loss of principal, loss of control over funds, inaccurate reporting, and negligence.

The Treasurer will assign designee(s) to assist in carrying out these functions and will establish an Oversight Reviewer function that may be carried out by a designated member of staff, independent individuals, or independent expert contractor to perform specified tasks.

In addition to the specified requirements placed on investment types, quality, maturity, and diversification, further controls will include:
 Safekeeping of Securities
To protect against losses caused by the collapse of individual securities dealers, all securities owned by the City are required to be held by a third-party safekeeping institution. Third-party safekeeping institutions may not act as custodians for any securities which that institution has issued or sold to the City.

Collateral must be held at safekeeping, as defined in the Safekeeping and Custody section of the Policy.

Payment procedures for all securities transactions will be Delivery v. Payment (DVP)  Competitive Bidding of Investments
The City’s investment procedures require that approved broker/dealers compete for investment purchases and sales in order for the City to obtain the highest yield available in the market and to ensure that investment transactions are free from favoritism.

Qualified Bids will be required for purchase of all investment transactions. The Treasurer shall select the best bid and is required to keep a record of each investment transaction. The Treasurer will rotate the purchase of investments among the pool of qualified broker/dealers.

If the City utilizes an external investment advisor, the advisor shall send its approved list of broker/dealers to the City annually and follow its policies and procedures for competitive bidding.
 Annual Management Review and Audit
An annual audit of the City’s Investment Policy, practices, procedures, and portfolio status will be conducted by an independent auditor of all items including, but not limited to, items specified in the Audit Checklist provided in the City’s Procedure Manual. The auditor will provide the City with written observations and recommendations regarding the adequacy of investment controls.  Segregated Investment Execution, Recordkeeping and Reporting An independent member of City staff will record the Treasurer’s investment records or confirmations to the City’s general ledger. In addition, independent staff will 44 City of Aliso Viejo 2024-25 Investment Policy Page 5 perform the monthly reconciliation of bank, broker/dealer, and safekeeping confirmations.
 Secondary Approval Required
The City Manager will review and approve the establishment of investment accounts, broker/dealer, and financial institution relationships and any agreements or contracts related to investments or investment related activity.
 Wire Transfer Controls
All City wire transfers will be executed in accordance with a written agreement specifying control procedures required for wire transfers of funds, including the establishment of repetitive wires to pay for securities transactions with approved securities dealers as well as any other routine money transfers. All other non-repetitive wires require City Manager approval prior to release.

Investment Policy Adoption
The City Council’s primary responsibilities over the investment function includes establishing investment policies, annually reviewing such policies, appointing a City Treasurer, reviewing monthly investment reports issued by the Treasurer, authorizing bond documents and financing transactions, and adopting recommended changes to the City’s Investment Policy as necessary.

The City’s investment policy shall be adopted by resolution of the City Council. The policy shall be reviewed annually by the City Council and any modifications made thereto must be approved the City Council.

Indemnification of Investment Officials
Any investment officer exercising his/her authority with due diligence, prudence, and care and in accordance with the Investment Policy and all written procedures shall be relieved of personal responsibility and liability for an individual security’s losses or losses incurred by the portfolio. However, any investment officer also bears the responsibility of reporting deviations from expectations in a timely manner to City Council and appropriate action is taken to control adverse developments and mitigate loss of principal.

Investment Portfolio Compliance
Should the portfolio, for any reason, fall out of compliance with this Investment Policy, immediate liquidation of securities in order to bring the portfolio back into compliance will not be required. However, the Treasurer must take action to bring the portfolio into compliance within 12 months from the date the portfolio was determined to be in non- compliance with the provisions of this Investment Policy. Additionally, adequate disclosure of all instances of noncompliance, and the efforts undertaken to bring the portfolio into compliance, must be made on the monthly Treasurer’s Report. 45 City of Aliso Viejo 2024-25 Investment Policy Page 6 Reporting
The Treasurer shall submit a “Monthly Treasurer’s Report” to the City Manager and City Council within 45 days following the last day of the month to be agendized for official action at a regular Council meeting thereafter. These reports shall disclose information relevant to the risk characteristics of the City’s investment portfolio and shall include the following information:

Monthly Treasurer’s Report
A. Cash receipts, disbursements, and balances in total.

B. A summary of the investment portfolio.

C. An asset list showing the issuer, type of investment, par value, maturity date, and interest rate.

D. Average rate of return on the City’s investment portfolio.

E. Maturity aging grouped by type of investment.

F. Diversification of the investment portfolio.

G. A listing of individual investment transactions during the month, as required by Government Code section 53607.

H. A statement of ability to meet upcoming operating expenses and spending requirements for the next six months.

I. A statement of compliance with the Investment Policy, including a schedule of any transactions or holdings which do not comply with this policy or with the California Government Code, including a justification for their presence in the portfolio, and a timetable for resolution.

Annual Report
The annual report will be prepared by the City Treasurer and submitted to the City Manager each fiscal year to ensure consistency. The annual report will include an overall analysis of the portfolio and shall suggest policies and improvements to enhance the City’s investment program. These enhancements will be annually considered by City Council and the authority to amend the Policy rests with City Council.

Authorized and Suitable Investments
Investment of City funds is governed by the California Government Code Sections 53600, 53601, 53601.5, 53601.6, 53635, and 53635.5 et seq. Within the context of the limitations, the following investments are authorized, as further limited herein:
46 City of Aliso Viejo 2024-25 Investment Policy Page 7 Matrix of Suitable Investment Options and Restrictions
Investment Type: Maximum
Maturity:

Maximum
percentage of
Portfolio:

Maximum Par Value
per Issuer:

Credit Quality and
Requirements:

U.S. Treasury
Bills, Notes and
Bonds

5 Years

100 percent

N/A
Explicit Full Faith and Credit
Guarantee of United States
Government

Federal Agency
Obligations

5 Years 60 percent
35% per agency

Implied Guarantee of the United
States Government
Bankers’
Acceptances
(BA’s)

180 Days

20 percent

5% per issuer
Domestic banks only - deemed
eligible for purchase by the
Federal Reserve Bank

Certificates of
Deposit or Time
Deposits*
(CD’s)

5 Years

30 percent

5% per issuer
Senior debt only from top 15
percent of peer group rated
banks, savings & loans and credit
unions. Defined by Section 5102
of the Financial Code.

Negotiable
Certificates of
Deposit

5 Years

30 percent

$250,000
Brokered CD’s insured by FDIC
for a maximum of $250,000 per
issuer.

Local Agency
Investment Fund
(LAIF)

N/A

100 percent

$75,000,000
(per entity)
Treasurer will review investment
policies and practices to
determine if consistent with the
Policy

Commercial Paper

270 Days

20 percent

5% of portfolio
Highest letter and number rating
as provided for by a nationally
recognized statistical-rating
organization (NRSRO)

Money Market
Mutual Funds

N/A

20 percent

20% per fund
(SEC Registered)
($1.00 NAV)
Highest rating from NRSRO.

Must also comply with Govt.

Code 53601(l) and 53601.6 (b)
and the weighted average to
maturity is less than 180 days.

Repurchase
Agreements*

92 Days

20 percent

20%
Signed security loan agreement
on file. Underlying securities
maintained at 102% of original
value. Reverse repurchase
agreements are specifically not
authorized under the Policy.

Supranational
Securities

5 Years

20 percent

10 % per issuer
United States dollar
denominated senior
unsecured unsubordinated
obligations issued or
unconditionally guaranteed
by the International Bank
for Reconstruction and
Development,
International Finance
47 City of Aliso Viejo 2024-25 Investment Policy Page 8 Corporation, or Inter-
American Development
Bank; rated AA or better
by two NRSROs.

Medium Term
Corporate Notes

5 Years

30 percent

5% of portfolio
Rated “A-” or better by a
nationally recognized rating
service. Code 53601 (k).
* Denotes a collateral requirement either initially, or at a pre-determined threshold. Please refer to Collateral section of the Policy for specific requirements.

Ratings and Rating Agencies
When possible, two ratings should be obtained to determine if an investment meets the Policy’s quality standard. Currently under this Policy, only Standard and Poor’s (S&P) and Moody’s Investor Service (Moody’s) are recognized investment ratings providers, and the City has established the following minimum standards to be applied at time of purchase and for reporting purposes:

Investment Type: Standard & Poor’s Moody’s

Banker’s Acceptances A1 P1
Commercial Paper A1 P1
Certificates of Deposit AA- Aa3
Money Market Mutual Funds AAA Aaa
Medium Term Corporate Notes A- A3
Supranational Securities AA Aa2
Repurchase Agreement – Provider AA Aa

Prohibited Investments
State and Federal laws notwithstanding, any investment not specifically described herein including, but not limited to, reverse repurchase agreements, derivatives, options, futures, zero coupon bonds, inverse floaters, range notes, first mortgages or trust deeds, collateralized mortgage obligations (CMO’s), limited partnerships, real estate investments trusts (REIT’s), open-end mutual funds, closed-end mutual funds, mutual funds with a weighted average maturity greater than 180 days, unregulated and/or uninsured investment pools, common stock, preferred stock, commodities, precious metals, securities with high price volatility, limited marketability (less than three active bidders), securities that may default on interest payments, and any other speculative investment deemed inappropriate under the Prudent Investor standard are strictly prohibited. In addition, any investment transaction that might impair public confidence in the Aliso Viejo City government is to be avoided.

48 City of Aliso Viejo 2024-25 Investment Policy Page 9 Collateralization
Collateral for Certificates of Deposit (CD) and Negotiated Certificates of Deposit (NCD) must comply with Government Code, Chapter 4, Bank Deposit Law Section 16500 et seq. and the Savings and Loan and Credit Union Deposit Law Government Code Section 16600 et seq.

In addition, if the CD is not FDIC insured or goes over the FDIC $250,000 limit, collateral is required equal to 100 percent of principal.

Collateral for Repurchase Agreements shall be 102 percent of market value of principal and accrued interest. Collateral can be either US Treasury securities or Federal Agency securities.

This will provide an addition level of security due to inevitable changes in market conditions.

Collateral will always be held by an independent third party with whom the City has a current custodial agreement. A clearly marked evidence of ownership (safekeeping receipt) must be supplied to the City and retained. The right of collateral substitution is granted within the parameters and constraints of this Policy.

Investment Pools
Government sponsored investment pools (Pools) are permitted under California Government Code Section 53601 et seq. and are an excellent short-term investment option for cash management facilities. These pools can provide safety, liquidity, and yield in a single diversified investment. However, thoughtful investigation and due diligence are required both initially at time of purchase and on an ongoing basis with analysis to determine that the investment pool is being managed in a manner consistent with the objectives of the Policy. The following guidelines include, but are not limited to:
 The Pool shall have attained the highest ranking or the highest letter and numerical rating provided by not less than two nationally recognized statistical rating organizations, or shall be insured by a municipal insurance corporation.  The Pool marks to market weekly at a minimum.
 The Pool provides comprehensive, timely monthly reports which include detailed transaction listings, report realized and unrealized gains and losses, provide accurate market values for each security, provide quality rating for individual securities, take delivery DVP, provide third party safekeeping of all investments, and for whom an audit is conducted annually by an independent auditor with no relationship to the Pool.

Money Market Mutual Funds
Money market mutual funds provide another safe, liquid, and diversified investment option for the City’s surplus capital. However, certain conditions need to be met both initially and on an ongoing basis. The money market may only invest in US Government securities permitted under this policy and under California Government Code Section 53601 et seq. with final stated maturities of one year or less “Government Money Market Funds.” In order to be an eligible money market investment under this section, the primary objective of the money market, as stated in the funds’ prospectus, is to maintain a constant $1.00 Net Asset Value (NAV). The following additional guidelines include, but are not limited to:
 The money market only invests in US Government securities, and the weighted average maturity of the portfolio is less than 180 days. 49 City of Aliso Viejo 2024-25 Investment Policy Page 10  The fund shall be registered with the SEC.
 The money market shall have attained the highest ranking or the highest letter and numerical rating provided by not less than two nationally recognized statistical rating organizations and shall maintain these ratings for the duration of the investment.

Maturity Limits
The longer the maturity of securities, the greater the market volatility. Therefore, the maximum maturity limit for any given security in the investment portfolio shall not exceed five (5) years.

It is also important to note that specific investments, detailed under the “Authorized and Suitable Investments” section, may be restricted to a shorter maturity.

The weighted average life of the portfolio may not exceed three (3) years in duration.

At a minimum, 15 percent of the portfolio shall remain liquid, accessible on demand by the City without restriction or penalty.

The investment portfolio shall be structured for liquidity purposes; therefore, 40 percent of the portfolio shall mature within 365-days.

Maturities will be selected based on a sufficiently detailed cash flow projection that facilitates selecting investment maturity dates to approximately match the projected dates of budgeted expenditures. Once cash flow needs are matched, maturities are selected based on a “laddering strategy” and the shape of the yield curve.

Extensions in the maximum maturity and average weighted life of the portfolio must be supported by detailed cash flow forecasts demonstrating the adequacy of cash from maturing assets to meet one hundred twenty-five percent (125%) of monthly expenditures for each prospective quarter, ending with the current maximum including capital expenditures funded on a pay-as-you-go basis. Recommendations to extend maturities must be reviewed and approved by the City Manager and City Council.

Qualifications for Financial Institutions and Broker/Dealer’s The Treasurer will maintain a list of qualified financial institutions and broker/dealers authorized to transact business with the City, as stated in Appendix “B”.

If the City utilizes a SEC registered external investment advisor, the advisor shall maintain a list of authorized broker-dealers and complete the appropriate due diligence required by the SEC. The external investment advisor may use its own list of approved broker/dealers and financial institutions for investment purposes on behalf of the City. The investment advisor shall submit the list of approved broker/dealers to the Finance Director/City Treasurer on an annual basis. The Finance Director/City Treasurer may restrict the use of a broker/dealer which may be deemed unsuitable.

The financial entities eligible to transact investment business with the City are:

I. Federal Reserve Bank:

Direct purchase of U.S. Treasury Bills, Notes, and Bonds using primary government dealers as designated by the Federal Reserve are exempt from quality requirements and are encouraged due to commission or mark-up discounts.

II. Nationally or State Chartered Banks, Savings and Loans, and Credit Unions:

The City may purchase investments offered from Banks, Savings and Loans, and Credit 50 City of Aliso Viejo 2024-25 Investment Policy Page 11 Unions provided the institutions are:
 Nationally or State Chartered Institutions.
 Registered as investment securities dealers.
 Ranked in the top 15 percent of institutions within their respective peer group.  The signatures of two individuals shall be required for the opening and closing of any bank account (the Treasurer, City Manager, Mayor, or Mayor Pro Tem).

The Accounting Officer, who is independent of the investment function, shall keep a record of all opened and closed accounts. On an annual basis, the Accounting Officer shall provide a list of accounts to the independent auditor.

III. Broker/Dealers:

The City will purchase investments from primary dealers whenever possible. However, if an investment deemed appropriate for the portfolio is not available through the primary market, then the Treasurer may use an authorized broker/dealer from the pre-approved list of broker/dealers on record.

For a broker/dealer to be considered for placement on the pre-approved list, they must comply with the following:
 Primary or Regional dealers that qualify for SEC Rule 15c3-1  Provide audited financial statements from the two most frequent years  A statement certifying that the institution has reviewed the City’s Investment Policy and California Government Code Section 53600 et seq. and that all securities offered to the City shall comply fully with all provisions of the Policy and the California Government Code.
 The signatures of two individuals shall be required for the opening and closing of any broker/dealer account (the Treasurer, City Manager, Mayor or Mayor Pro Tem). The Accounting Officer, who is independent of the investment function, shall keep a record of all opened and closed accounts. On an annual basis, the Accounting Officer shall provide a list of accounts to the independent auditor.
 Settlement of securities traded through qualified broker/dealers shall occur trade date plus one or two days (depending upon security type), the current industry standard. New issue securities may have longer settlements, but none shall be greater than three weeks.

The Treasurer is responsible for ensuring that settlement occurs in a timely matter and that execution confirmations reflect accurate trade data. In addition, investment transactions are required to be Delivery v. Payment (DVP).

Diversification Guidelines and Risks
The City recognizes diversification is an investment strategy that will mitigate risk in the investment portfolio. The City’s investment portfolio shall be diversified to avoid incurring unreasonable and avoidable risks with regard to specific investment types. Within investment types, the City shall also maintain a mix of securities to avoid concentrations within individual financial institutions, geographic areas, industry types, and maturities. 51 City of Aliso Viejo 2024-25 Investment Policy Page 12 The City will only invest in fixed rate, fixed maturity securities and, with the exception of U.S.

Treasury securities or the Local Agency Investment Fund (LAIF), no more than 60 percent of the investment portfolio shall be invested in any single investment type or financial institution.

Safekeeping and Custody
All security transactions, including collateral for repurchase agreements and certificates of deposit, shall be transacted on a Delivery vs. Payment (DVP) basis. This means that the securities shall be delivered to the City or the City’s designated custodian upon receipt of payment by the City.

All securities that may be purchased, including collateral, shall be held by a third-party custodian designated by the Treasurer whenever possible. These securities shall be held in the City’s name and control, and the third-party custodian shall be evidenced by safekeeping receipts. The third-party custodian shall send the City, on a monthly basis, a summary of safekeeping assets, and this statement shall be reconciled to the City’s records on a monthly basis. Securities held in custody for the City shall be independently audited on an annual basis to verify investment holdings.

Performance Standards and Evaluation
Investment performance is continually monitored and evaluated by the City Treasurer.

Investment activity reports are generated on a monthly basis for presentation to the City Manager and City Council.

The weighted average maturity of the pooled portfolio shall not exceed three years and shall be designated to attain a market average rate of return. The market average rate of return will be determined by a custom benchmark that represents the prominent and persistent characteristics of the portfolio.

An annual audit of the City’s Investment Policy, practices, procedures, and portfolio status will be conducted by an independent auditor of all items including, but not limited to, items specified in the Audit Checklist provided in the City’s Procedure Manual. The auditor will provide the City Manager and City Council with written observations and recommendations regarding the adequacy of investment controls.

Qualifications and Continuing Education
The City Treasurer shall be a City employee or contract employee. The Treasurer shall be selected on the basis of educational background and experience relevant to the Treasury function.

The City recognizes the need for and is committed to providing ongoing education specific to the investment function for the Treasurer and other City staff and officials involved in the investment process.
52 Appendix A

GLOSSARY OF TERMS
Accrued Interest - Interest earned but not yet received.

Active Deposits - Funds which are immediately required for disbursement.

Agencies - Federal agency securities and/or Government-sponsored enterprises.

Amortization - An accounting practice of gradually decreasing (increasing) an asset's book value by spreading its depreciation (accretion) over a period of time.

Asking Price - The price a broker/dealer offers to sell securities. See Offer Bankers' Acceptance (BA) - A “draft” or bill or exchange accepted by a bank or trust company. The accepting institution guarantees payment of the bill, as well as the issuer.

Basis Point - One basis point is one hundredth of one percent (.01).

Bear Market - A period of generally pessimistic attitudes and declining market prices.

Bid - The price offered by a buyer of securities. (When you are selling securities, you ask for a bid.) See Offer.

Bond - A financial obligation for which the issuer promises to pay the bondholder a specified stream of future cash flows, including periodic interest payments and a principal repayment.

Book Value - The value at which a debt security is shown on the holder's balance sheet. Book value is acquisition cost less amortization of premium or plus accretion of discount.

Broker - A broker brings buyers and sellers together for a commission.

Bull Market - A period of generally optimistic attitudes and increasing market prices.

Callables - Securities that the issuer has the right to redeem prior to maturity.

Certificate of Deposit - A time deposit with a specific maturity, evidenced by a certificate.

Large-denomination CD's are typically negotiable. CD's may be eligible for FDIC insurance.

Collateral - Securities, evidence of deposit, or pledges to secure repayment of a loan. Also refers to securities pledged by a bank to secure deposit of public moneys.

Commercial Paper - Short-term, unsecured promissory notes issued by a corporation to raise working capital. These negotiable instruments are purchased at a discount to par value or at par value with interest bearing.

Comprehensive Annual Financial Report (CAFR) - The official annual financial report for the City. It includes government-wide and fund financial statements prepared in conformity with Generally Accepted Accounting Principals (GAAP).

Constant Maturity Treasury (CMT) - An average yield of a specific Treasury maturity sector for a specific time frame, or an index of the average yield on United States Treasury securities adjusted to a constant maturity. This is a market index for reference of past direction of interest rates for the given Treasury maturity range.

Coupon - The annual rate of interest that a bond's issuer promises to pay the bondholder on the bond's face value.

Credit Analysis - A critical review and appraisal of the economic and financial conditions or of the ability to meet debt obligations.
53 Appendix A
GLOSSARY OF TERMS (continued)
Current Yield - The interest paid on an investment expressed as a percentage of the current price of the security.

Custody - A banking service that provides safekeeping for the individual securities in a customer's investment portfolio under a written agreement which also calls for the bank to collect and pay out income, to buy, sell, receive, and deliver securities when ordered to do so by the principal.

Debenture - A bond secured only by the general credit of the issuer.

Delivery v. Payment (DVP) - Delivery of securities with a simultaneous exchange of payment for the securities.

Demand Deposit Account - Accounts whose balance is available to meet immediate cash needs (maturities up to 7 days).

Derivatives - (1) Financial instruments whose return profile is linked to, or derived from, the security and may include a leveraging factor, or (2) financial contracts based upon notional amount whose value is derived from an underlying index or security (interest rates, foreign exchange rates, equities, or commodities).

Discount - The difference between the cost of a security and its value at maturity when quoted at lower than face value.

Discount Securities - Non-interest bearing money market instruments that are issued at a discount and redeemed at maturity for full face value, e.g., U. S. Treasury Bills.

Diversification - Dividing investment funds among a variety of securities offering independent return and risk profiles.

Duration - The weighted average maturity of a bond's cash flow stream, where the present value of the cash flows serves as the weights; the future point in time at which, on average, an investor has received exactly half of the original investment in present value terms; a bond's zero-coupon equivalent; the fulcrum of a bond's present value cash flow time line.

Fannie Mae - Trade name for the Federal National Mortgage Association (FNMA).

Federal Credit Agencies - Agencies of the Federal Government set up to supply credit to various classes of institutions and individuals, e.g., Savings and Loans, small business firms, students, farmers, farm cooperatives, and exporters.

Federal Deposit Insurance Corporation (FDIC) - Insurance provided to customers of a subscribing bank, which guarantees deposits to a set limit (currently $100,000) per account.

Federal Funds Rate - The rate of interest at which Federal funds are traded. This rate is currently pegged by the Federal Reserve through open-market operations.

Federal Home Loan Banks (FHLB) – Government-sponsored wholesale banks which lend funds and provide correspondent banking services to member commercial banks, thrifty institutions, credit unions, and insurance companies. The mission of the FHLBs is to liquefy the housing related assets of its members who must purchase stock in their district Bank. 54 Appendix A
GLOSSARY OF TERMS (continued)
Federal Home Loan Mortgage Corporation (FHLMC) - The FHLMC was created under the Federal Home Loan Mortgage Act, Title III of the Emergency Home Finance Act of 1970 as a stockholder-owned government-sponsored enterprise. Freddie Mac, as the corporation is called, is charged with providing stability and assistance to the secondary home mortgage market by buying first mortgages and participation interests and reselling these securities in the form of guaranteed mortgage securities. Although agency obligations are not explicitly guaranteed by the federal government, the rating agencies believe that in the unlikely event of financial difficulties, the federal government will support the agency to the extent necessary to provide for full and timely payment on their securities.

Federal National Mortgage Association (FNMA) - FNMA, like GNMA, was chartered under the Federal National Mortgage Association Act in 1938. FNMA is a federal corporation working under the auspices of the Department of Housing and Urban Development (HUD).

It is the largest single provider of residential mortgage funds in the United States. Fannie Mae, as the corporation is called, is a private stockholder-owned corporation. The corporation's purchases include a variety of adjustable mortgages and second loans, in addition to fixed-rate mortgages. FNMA's securities are also highly liquid and are widely accepted. FNMA assumes and guarantees that all security holders will receive timely payment of principal and interest.

Federal Open Market Committee (FOMC) - Consists of seven members of the Federal Reserve Board and five of the twelve Federal Reserve Bank Presidents. The President of the New York Federal Reserve Bank is a permanent member, while the other Presidents serve on a rotating basis. The Committee periodically meets to set Federal Reserve guidelines regarding purchases and sales of Government Securities in the open market as a means of influencing the volume of bank credit and money.

Federal Reserve System - The central bank of the U. S. which consists of a seven-member Board of Governors, 12 regional banks, and 5,700 commercial banks that are members.

Fed Wire - A wire transmission service established by the Federal Reserve Bank to facilitate the transfer of funds through debits and credits of funds between participants within the Fed system.

Freddie Mac - Trade name for the Federal Home Loan Mortgage Corporation (FHLMC).

Ginnie Mae - Trade name for the Government National Mortgage Association (GNMA).

Government National Mortgage Association (GNMA) - Securities influencing the volume of bank credit guaranteed by GNMA and issued by mortgage bankers, commercial banks, savings and loan associations, and other institutions. Security holder is protected by the full faith and credit of the U.S. Government. Ginnie Mae securities are backed by the FHA, VA, or FmHA mortgages. The term "pass-throughs" is often used to describe Ginnie Maes.

Inactive Deposits - Funds not immediately needed for disbursements.

Interest Rate - The annual yield earned on an investment, expressed as a percentage.

Investment Agreements - An agreement with a financial institution to borrow public funds subject to certain negotiated terms and conditions concerning collateral, liquidity, and interest rates.
55 Appendix A
GLOSSARY OF TERMS (continued)
LAIF (Local Agency Investment Fund) - A special fund in the State Treasury which local agencies may use to deposit funds for investment. There is no minimum investment period, and the minimum transaction is $5,000, in multiples of $1,000 above that, with a maximum balance of $75,000,000 for any agency. It offers high liquidity because deposits can be converted to cash in 24 hours and no interest is lost. All interest is distributed to those agencies participating on a proportionate share basis determined by the amounts deposited and the length of time they are deposited. Interest is paid quarterly. California Government Code §16429.3 states, in part:
"money placed with the State Treasurer for deposit in the Local Agency Investment Fund by cities, counties, or special districts shall not be subject to impoundment or seizure by any state official or state agency."

Liquidity - Refers to the ability to rapidly convert an investment into cash with minimal risk of losing some portion of principal and/or interest.

Local Government Investment Pool (LGIP) - The aggregate of all funds from political subdivisions that are placed in the custody of the State Treasurer for investment and reinvestment.

Market Value - The price at which a security is trading and could presumably be purchased or sold.

Master Repurchase Agreement - A written contract covering all future transactions between the parties to repurchase and/or reverse repurchase agreements that establishes each party's rights in the transactions. A master agreement will specify, among other things, the right of the buyer-lender to liquidate the underlying securities in the event of default by the seller- borrower.

Maturity - The date upon which the principal or stated value of an investment becomes due and payable.

Medium Term Corporate Notes - Unsecured promissory notes issued by a corporation organized and operating in the United States. These are negotiable instruments and are traded in the secondary market. Medium term corporate notes can be defined as extended maturity commercial paper. Local agencies are restricted by the Government Code to investments in corporations rated in the top three note categories by Moody's Investors Service, Inc., and/or Standard and Poor's Corporation. For medium term notes, eligible purchases consist of instruments that have a rating of "A" or better by both Moody's Investors Service, Inc., and Standard and Poor's Corporation.

Money Market - The market in which short-term debt instruments (bills, commercial paper, banker's acceptances, etc.) are issued and traded.

Negotiable Certificates of Deposit - Unsecured obligations of the financial institution, or bank, bought at par value with the promise to pay face value plus accrued interest at maturity.

They are high-grade negotiable instruments, paying a higher interest rate than regular certificates of deposit. The primary market issuance is in multiples of $1,000,000; the secondary market usually trades in denominations of $500,000, although smaller lots are occasionally available. As a matter of practice, only the ten largest U.S. banks where there is a secondary market established for continued liquidity would be considered for investment. 56 Appendix A
GLOSSARY OF TERMS (continued)
NRSRO - Nationally recognized statistical-rating organization New Issue - Term used when a security is originally "brought" to market.

Offer - The price asked by a seller of securities. (When you are buying securities, you ask for an offer.) See Asking Price and Bid.

Open Market Operations - Purchases and sales of government and certain other securities in the open market by the New York Federal Reserve Bank as directed by the FOMC in order to influence the volume of money and credit in the economy. Purchases inject reserve into the bank system and stimulate growth of money and credit; sales have the opposite effect. Open market operations are the Federal Reserve's most important and most flexible monetary policy tool.

Paper Gain or Loss - Term used for unrealized gain or loss on securities being held in a portfolio based on comparison of current market quotes and their original cost. This situation exists as long as the security is held while there is a difference between cost value (book value) and the market value.

Perfected Delivery - Refers to an investment where the actual security or collateral is held by an independent third party representing the purchasing entity.

Portfolio - Collection of securities held by an investor.

Primary Dealer - A group of government securities dealers that submit daily reports of market activity and security positions held to the Federal Reserve Bank of New York and are subject to its informal oversight.

Prudent Person Rule - An investment standard. In some states, the law requires that a fiduciary, such as a trustee, may invest money only in a list of securities selected by the custody state - the so-called legal list. In other states, the trustee may invest in a security if it is one which would be bought by a prudent person of discretion and intelligence who is seeking a reasonable income and preservation of capital.

Purchase Date - The date in which a security is purchased for settlement on that or a later date.

Qualified Public Depositories - A financial institution that does not claim exemption from the payment of any sales or compensating use or ad valorem taxes under the laws of this state, which has segregated for the benefit of the commission eligible collateral having a value of not less approved by the Public Deposit Protection Commission to hold public deposits.

Rate of Return - The yield obtainable on a security based on its purchase price or its current market price. This may be the amortized yield to maturity on a bond or the current income return.

Repurchase Agreement (RP or REPO) - A holder of securities sells these securities to an investor with an agreement to repurchase them at a fixed price on a fixed date. The security "buyer" in effect lends the "seller" money for the period of the agreement, and the terms of the agreement are structured to compensate him for this. Dealers use RP extensively to finance their positions. Exception: When the Fed is said to be doing RP, it is lending money, or increasing bank reserves.
57 Appendix A
GLOSSARY OF TERMS (continued)
Reverse Repurchase Agreement (Reverse REPO) - A transaction where the seller (City) agrees to buy back from the buyer (bank) the securities at an agreed upon price after a stated period of time.

Risk - Degree of uncertainty of return on an asset.

Safekeeping - See Custody.

Secondary Market - A market made for the purchase and sale of outstanding issues following the initial distribution.

Securities and Exchange Commission - Agency created by Congress to protect investors in securities transactions by administering securities legislation.

SEC Rule 15(C)3-1 - See Uniform Net Capital Rule.

Settlement Date - The date on which a trade is cleared by delivery of securities against funds.

Spread - a) The yield or price difference between the bid and offer on an issue; b) the yield or price difference between different issues.

Structured Notes - Notes issued by government-sponsored enterprises (FHLB, FNMA, etc.) and corporations that have imbedded options (e.g., call features, step-up coupons, floating rate coupons, derivative-based returns) in their debt structure. Their market performance is impacted by the fluctuation of interest rates, the volatility of the imbedded options, and shifts in the shape of the yield curve.

Supranational - A supranational entity is formed by two or more central governments with the purpose of promoting economic development for the member countries. Supranational institutions finance their activities by issuing debt, such as supranational bonds. The three U.S. based supranationals are International Bank for Reconstruction and Development, the International Finance Corporation, and the Inter-American Development Bank.

Swap - The sale of one issue and the simultaneous purchase of another for some perceived advantage.

Treasury Bills - A non-interest bearing discount security issued by the U.S. Treasury to finance the national debt. Most bills are issued to mature in three months, six months, or one year.

Treasury Bonds - Long-term coupon-bearing U. S. Treasury securities issued as direct obligations of the U. S. Government and having initial maturities of more than ten years.

Treasury Notes - Medium-term coupon-bearing U. S. Treasury securities issued as direct obligations of the U. S. Government and having initial maturities from two to ten years.

Uniform Net Capital Rule - Securities and Exchange Commission requirement that member firms, as well as nonmember broker-dealers in securities, maintain a maximum ratio of indebtedness to liquid capital of 15 to 1; also called net capital rule and net capital ratio.

Indebtedness covers all money owed to a firm, including margin loans and commitments to purchase securities, one reason new public issues are spread among members of underwriting syndicates. Liquid capital includes cash and assets easily converted into cash.

U.S. Government Agencies - Instruments issued by various U.S. Government Agencies, most of which are secured only by the credit worthiness of the particular agency.

Yield - The rate of annual income return on an investment, expressed as a percentage. It is obtained by dividing the current dollar income by the current market price of the security. 58 Appendix A
Yield to Maturity - The rate of income return on an investment, minus any premium or plus any discount, with the adjustment spread over the period from the date of purchase to the date of maturity of the bond, expressed as a percentage. 59 Appendix B

QUALIFIED BROKER/DEALERS

The City has qualified the following Broker/Dealer’s:
 Cantella & Co. Inc
 Great Pacific Securities
 Higgins Capital
 Morgan Stanley
 Multi-Bank Securities, Inc
 Mutual Securities, Inc
 Raymond James & Associates, Inc.
 Time Value Investments
 UBS Financial Services, Inc
 Wedbush Securities
60 Appendix C

ADMINISTRATIVE POLICY

Investment Guidelines, Strategy, and Internal Control

61 City of Aliso Viejo

ADMINISTRATIVE POLICY

SUBJECT

INVESTMENT GUIDELINES, STRATEGY

AND INTERNAL CONTROL
APPROVED BY:

Dave Doyle
CITY

MANAGER
PROCEDURE NO.
11 EFF. DATE
7/1/2015
Rev
7/1/2017
7/1/2023
PAGE
1 of 4

PURPOSE
The purpose of this policy is to establish a framework for the investment of surplus City funds within the established internal control procedures for treasury functions.

POLICY

INVESTMENT GUIDELINES AND STRATEGY

GUIDELINES

1. Investment Transaction - Every investment transaction must be authorized and reviewed by the Director of Finance/City Treasurer or his/her designee.

2. Pooled Cash - Whenever practical, local agency cash is consolidated into one bank account and invested on a pooled concept basis. Interest earnings are allocated monthly according to month-end cash and investment balances for each fund.

3. Competitive Bids - Purchases and sales of securities are made on the basis of competitive offers and bids.

4. Cash Forecast - The cash flow for the City is analyzed with the receipt of revenues and maturity of investments scheduled so that adequate cash will be available to meet disbursement requirements.

5. Investment Limitations - Security purchases and holdings are maintained within statutory limits imposed by the California Government Code.

6. Liquidity - The marketability of a security is considered at the time of purchase, as the security may have to be sold at a later date to meet unanticipated cash demands.

7. Diversification - The portfolio should consist of various types of securities, issuers, and maturities.

STRATEGY

1. Economic Forecasts - Economic Forecasts are obtained periodically from economists and financial experts through bankers and brokers to assist the Director of Finance/City Treasurer or his/her designee with the formulation of an investment strategy for the local agency.

2. Implementing Investment Strategy - Investment transactions are executed to conform to anticipated interest rate trends and the current investment strategy plan.
62 City of Aliso Viejo

ADMINISTRATIVE POLICY

SUBJECT

INVESTMENT GUIDELINES, STRATEGY

AND INTERNAL CONTROL
APPROVED BY:

Dave Doyle
CITY

MANAGER
PROCEDURE NO.
11 EFF. DATE
7/1/2015
Rev
7/1/2017
7/1/2023
PAGE
2 of 4

3. Rapport - A close working relationship is maintained with public works, city staff, and large vendors of the city.

The objective is to pinpoint when large disbursements will clear the City's bank account. It is essential for good cash control that such large expenditures be anticipated, estimated as to dollar amount, and communicated to the Director of Finance/City Treasurer or his/her designee for liquidity planning purposes.

4. Preserve Portfolio Value - Field standards are developed in order to maintain earnings near the market and to preserve the value of the portfolio.

INTERNAL CONTROL
I. OBJECTIVES OF INTERNAL CONTROL

1. To effectively and efficiently conduct business, including adherence to financial and management policies.

2. Safeguarding its assets and prevention or detection of errors and fraud.

3. Timely preparation of accurate and reliable financial information.

4. Compliance with applicable laws and regulations.

II. COMPONENTS OF INTERNAL CONTROL

1. Control Environment - The control environment is the set of standards, processes, and structures that provides the basis for carrying out internal control across the organization. Management establishes the tone at the top regarding the importance of internal control, including expected standards of conduct, organizational structure, and assignment of authority and responsibility.

2. Risk Assessment - Risk assessment involves a dynamic process for identifying and analyzing risks in achieving the entity’s objectives. Risk assessment requires management to consider the impact of possible changes in the internal and external environment that may render established internal controls ineffective.

3. Control Activities - Control activities are the actions established through policies and procedures to ensure that management’s directives to mitigate risks are achieved. Segregation of duties is typically built into the development of control activities and may include authorizations, verifications, reconciliations, and reviews.

4. Communication - Communication occurs both internally and externally and provides the organization with the information needed to carry out day-to-day activities.

5. Audits – Audits are the process through which activities can be monitored and evaluated for any internal control deficiencies and communicated to management for taking corrective action. 63 City of Aliso Viejo

ADMINISTRATIVE POLICY

SUBJECT

INVESTMENT GUIDELINES, STRATEGY

AND INTERNAL CONTROL
APPROVED BY:

Dave Doyle
CITY

MANAGER
PROCEDURE NO.
11 EFF. DATE
7/1/2015
Rev
7/1/2017
7/1/2023
PAGE
3 of 4
III. ELEMENTS OF INTERNAL CONTROL

1. Organization - Responsibility for the performance of duties should be assigned and lines of authority and reporting clearly identified and delineated.

2. Segregation of functions - Segregation of functions reduces the risk for an individual to be able to perpetrate and conceal errors or commit fraud in the normal course of duty. If two parts of a transaction are handled by different individuals, collusion is necessary to conceal errors or commit fraud. Functions that should be considered when evaluating segregation of duties are authorization, execution, recording, custody of assets, and reconciliation.

3. Authorization - All transactions should be approved by an authorized individual. The responsibilities and limits of authorization should be clearly delineated. The individual or group authorizing a specific transaction or granting general authority for transactions should be in a position commensurate with the nature and significance of the transactions.

4. Controls over an accounting system - Controls over an accounting system include the procedures, both manual and computerized, carried out independently to ascertain that transactions are complete, valid, authorized, and properly recorded.

IV. LIMITATIONS OF INTERNAL CONTROL
Internal control, no matter how well-designed, implemented, and conducted, can only provide reasonable assurance to management of the achievement of an entity’s objectives. Inherent limitations of internal control may include:

1. Recurring, rather than unusual, types of transactions.

2. Human error due to misunderstanding, carelessness, fatigue, or distraction.

3. Potential for collusion that circumvents controls defined by the segregation of functions.

4. Possibility of a management override of the system, despite an otherwise effective system of internal control. 64 City of Aliso Viejo

ADMINISTRATIVE POLICY

SUBJECT

INVESTMENT GUIDELINES, STRATEGY

AND INTERNAL CONTROL
APPROVED BY:

Dave Doyle
CITY

MANAGER
PROCEDURE NO.
11 EFF. DATE
7/1/2015
Rev
7/1/2017
7/1/2023
PAGE
4 of 4

SEGREGATION OF RESPONSIBILITIES FOR TREASURY FUNCTIONS
Function Responsibility _

1. Formal investment policy should be
* Prepared by Director of Finance/City Treasurer
* Approved by City Council

2. Develop Investment Strategy Director of Finance/City Treasurer or Registered Investment Advisor

3. Receive quotes and recommend investments for purchase Director of Finance/City Treasurer,

4. Approve investment transactions Director of Finance/City Treasurer, City Manager

5. Execute investment transactions Director of Finance/City Treasurer

6. Approve investment transactions for compliance with Director of Finance/City Treasurer or Investment policy and/or State Law Registered Investment Advisor

7. Record investment transactions in the City’s financials Accountant

8. Verify investment Director of Finance/City Treasurer i.e., match broker confirmation to City records Senior Accountant or Accountant

9. Confirm LAIF and Bank Wires Director of Finance/City Treasurer Senior Accountant or Accountant

10. Safeguard assets and records:
* Reconciliation of City’s records to bank statements Senior Accountant or Accountant and safekeeping of records
* Annual review of (a) financial institution's financial condition, Director of Finance/City Treasurer, and (b) safety, liquidity, and potential yields of investment City Manager instruments

11. Annual review of investment portfolio External Independent Auditors The segregation of responsibilities as outlined herein is intended to enhance the City’s internal controls over treasury functions. It should be noted that from time to time, due to the limited size of the Financial Services staff, segregation of responsibilities may be amended in order to fulfill the business needs of the organization. 65 City of Aliso Viejo 2023-242024-25 Investment Policy Page i

EXHIBIT “A”

CITY OF ALISO VIEJO

STATEMENT OF INVESTMENT POLICY
FOR FISCAL YEAR 2024-253-24
AS ADOPTED July 179, 20243

CITY COUNCIL

Mayor Richard HurtMike Munzing
Mayor Pro Tem Tiffany AckleyMike Munzing
Council Member Tiffany AckleyRoss Chun
Council Member Ross ChunMax Duncan
Council Member Max DuncanRichard Hurt
66 City of Aliso Viejo 2023-242024-25 Investment Policy Page ii

TABLE OF CONTENTS

APPENDIX A: Glossary of Terms
APPENDIX B: Qualified Broker/Dealers
APPENDIX C: Administrative Policy: Investment Guidelines, Strategy, and Internal Control
67 City of Aliso Viejo 2024-253-24

Page 1 ends

City of Aliso Viejo 2024-253-24 Investment Policy

This Policy is based on the principles of pr udent money management and conforms to all applicable Federal and State Laws governing the investment of public funds. In instances in which the Policy is more restrictive than Federal or State Law, the Policy will supersede.

The Policy has three primary objectives, in order of priority:

Credit Risk
Credit Risk is the risk of loss of principa l due to the failure of the security issuer.

Interest Rate Risk
Interest rate risk is the risk that the market value of securities will fall due to a rise in general market interest rates. It is th e policy of the City to hold individual securities to maturity in an effort to meet liquidity demands. Interest rate risk can be mitigated by:
 Holding individual securities to maturity - Structuring the investment portfolio so that securities mature to meet cash flow requirements for ongoing operations, thereby avoiding the need to sell securities on the open market prior to maturity.  Employing a laddering strategy whereby staggering maturities of individual securities so that bonds come due in in crements, assuring an overall liquidity pattern.
 Limiting maturities of individual securities and the average maturity of the overall portfolio.

68 City of Aliso Viejo 2024-253-24 Investment Policy Page 2

2. Liquidity – the investment portfolio shall rema in sufficiently liquid to meet all daily cash flow and operating requireme nts that may be reasonably expected or anticipated.

3. Return or Yield – attain a rate of return consistent with the primary objectives of safety and liquidity, throughout budgetary and economic cycles.

The Policy applies to the following funds and is accounted for in the City’s annual audited financial statements.

A. General Fund
B. Special Revenue Funds
C. Debt Service Funds
D. Capital Improvement Funds
E. Enterprise Funds
F. Internal Service Funds
G. Agency Funds

Governing bodies of local agencies or persons authorized to make investment decisions on behalf of those local agencies investing public funds pursuant to this chapter are trustees and therefore fiduciaries subject to the prudent inve stor standard. When investing, reinvesting, purchasing, acquiring, exchanging, selling, and managing public funds, a trustee shall act with care, skill, prudence, and diligence under the ci rcumstances then prevailing, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency. Within th e limitations of sections 16429.1 and 53600 through 53684 of the California Government Code and considering individual investments as a part of an overall strategy, a trustee is authorized to acquire investments as authorized by law.

Accordingly, the City’s conservative philosophy prohibits active trading and speculation; i.e., the purchase of securities with the intent to profit from favorable market changes in market prices or market conditions. Leveraging or bo rrowing money for the pu rpose of investing is specifically prohibited. However, the City may elect to sell a security prior to its maturity and 69 City of Aliso Viejo 2024-253-24 Investment Policy Page 3

record a capital gain or loss in order to improve the quality, liquidity, or yield of the portfolio in response to market conditions or City needs.

Delegation of Authority
The City’s Resolution No. 2003-018 appoints the Director of Financial Services to also serve as City Treasurer. The Treasurer, or his or her designee, has the authority to manage the City’s investment portfolio in accordance with Ca lifornia Government Code Sections 53600 and 53630 et seq. and all related State and Federal laws.

The Treasurer will provide prior written notif ication to the City Manager and City Council regarding the designation of responsibilities.

The Treasurer shall establish written procedur es for the operation and management of the City’s investment portfolio consistent with this investment policy. The procedures should include reference to safekeeping, repurchase agreements, wire transf er agreements, banking service contracts, collateral or depository ag reements, competitive bid process, and due diligence. Such procedures shall include explicit delegation of authority to persons responsible for investment transactions. No person may enga ge in an investment transaction, except as provided under the terms of this policy and the investment procedures established by the Treasurer and approved by the City Manager.

The City may also engage Securities and Exchange Commission registered external investment advisor to manage the City’s investment program.

The overall program shall be designed and mana ged with a degree of professionalism that is worthy of public trust. In a diversified portf olio, it must be recognized that occasional measured losses are inevitable and must be considered in the context of the overall portfolio’s investment return, provided that adequate diversification has been implemented.

Ethics and Conflicts of Interest
Elected officials and employees of the City involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the investment program, or which could impair their ability to make impartial decisions under the Political Reform Act and Government Code Section 1090 et seq. Elected officials and employees shall disclose to the City Manager any material intere sts in financial institutions that conduct business with the City, and they shall further disclose any personal investment position or financial asset that could be related to the performance of the City’s investment program.

Elected officials and employees shall subordinate their personal investment transactions to those of the City particularly with regard to the time of purchases and sales.

All persons, firms, broker/dealers, financial in stitutions, and advisors providing investment services or bond issue assistance shall disclose to the City Manager and the Treasurer all fee sharing, fee-splitting, and commission arrangements with other entities or persons prior to the City agreeing to buy an investment or issue bonds.

The Treasurer will assign designee(s) to assist in carrying out these functions and will establish an Oversight Reviewer function that may be carri ed out by a designated member of staff, independent individuals, or independent expert contractor to perform specified tasks.

In addition to the specified requirements placed on investment types, quality, maturity, and diversification, further controls will include:
 Safekeeping of Securities
To protect against losses caused by the collaps e of individual securities dealers, all securities owned by the City are required to be held by a third-party safekeeping institution. Third-party safekeeping instit utions may not act as custodians for any securities which that institution has issued or sold to the City.

Collateral must be held at safekeeping, as defined in the Safekeeping and Custody section of the Policy.

Payment procedures for all securities transactions will be Delivery v. Payment (DVP)  Competitive Bidding of Investments
The City’s investment procedures require that approved broker/dealers compete for investment purchases and sales in order for the City to obtain the highest yield available in the market and to ensure th at investment transactions are free from favoritism.

Qualified Bids will be required for purcha se of all investment transactions. The Treasurer shall select the best bid and is required to keep a record of each investment transaction. The Treasurer will rotate the purchase of investments among the pool of qualified broker/dealers.

perform the monthly reconciliation of bank, broker/dealer, and safekeeping confirmations.
 Secondary Approval Required
The City Manager will review and approve the establishment of investment accounts, broker/dealer, and financial institution relationships and any agreements or contracts related to investments or investment related activity.
 Wire Transfer Controls
All City wire transfers will be executed in accordance with a written agreement specifying control procedures required for wire transfers of funds, including the establishment of repetitive wires to pay for securities transactions with approved securities dealers as well as any other routine money transfers. All other non-repetitive wires require City Manager approval prior to release.

Investment Policy Adoption
The City Council’s primary responsibilities over the investment function includes establishing investment policies, annually reviewing such po licies, appointing a City Treasurer, reviewing monthly investment reports issued by the Treasurer, authorizing bond documents and financing transactions, and adopting recommended changes to the City’s Investment Policy as necessary.

Reporting
The Treasurer shall submit a “Monthly Treasur er’s Report” to the City Manager and City Council within 45 days following the last day of the month to be agendized for official action at a regular Council meeting thereafter. These re ports shall disclose information relevant to the risk characteristics of the City’s investme nt portfolio and shall include the following information:

Monthly Treasurer’s Report
A. Cash receipts, disbursements, and balances in total.

B. A summary of the investment portfolio.

C. An asset list showing the issuer, type of investment, par value, maturity date, and interest rate.

D. Average rate of return on the City’s investment portfolio.

E. Maturity aging grouped by type of investment.

F. Diversification of the investment portfolio.

G. A listing of individual investment transa ctions during the month, as required by Government Code section 53607.

H. A statement of ability to meet upcoming operating expenses and spending requirements for the next six months.

I. A statement of compliance with the Investme nt Policy, including a schedule of any transactions or holdings which do not comply with this policy or with the California Government Code, including a justification for their presence in the portfolio, and a timetable for resolution.

Annual Report
The annual report will be prepared by the City Treasurer and submitted to the City Manager each fiscal year to ensure consistency. The annual report will include an overall analysis of the portfolio and shall suggest policies and improvements to enhance the City’s investment program. These enhancements w ill be annually considered by City Council and the authority to amend the Policy rests with City Council.

Authorized and Suitable Investments
Investment of City funds is governed by th e California Government Code Sections 53600, 53601, 53601.5, 53601.6, 53635, and 53635.5 et seq. Within the context of the limitations, the following investments are authorized, as further limited herein:
73 City of Aliso Viejo 2024-253-24 Investment Policy Page 7

Matrix of Suitable Investment Options and Restrictions
Investment Type: Maximum
Maturity:

Maximum
percentage of
Portfolio:

Maximum Par Value
per Issuer:

Credit Quality and
Requirements:

U.S. Treasury
Bills, Notes and
Bonds

5 Years

100 percent

N/A
Explicit Full Faith and Credit
Guarantee of United States
Governmen
t

Federal Agency
Obligations

5 Years 60 percent

35% per agency

Implied Guarantee of the United
States Government
Bankers’
Acceptances
(BA’s)

180 Days

20 percent

5% per issuer
Domestic banks only - deemed
eligible for purchase by the
Federal Reserve Ban
k

Certificates of
Deposit or Time
Deposits*
(CD’s)

5 Years

30 percent

5% per issuer
Senior debt only from top 15
percent of peer group rated
banks, savings & loans and credit
unions. Defined by Section 5102
of the Financial Code.

Negotiable
Certificates of
Deposit

5 Years

30 percent

$250,000
Brokered CD’s insured by FDIC
for a maximum of $250,000 per
issuer.

Local Agency
Investment Fund
(LAIF)

N/A

100 percent

$75,000,000
(per entity)
Treasurer will review investment
policies and practices to
determine if consistent with the
Polic
y

Commercial Paper

270 Days

20 percent

5% of portfolio
Highest letter and number rating
as provided for by a nationally
recognized statistical-rating
organization (NRSRO)

Money Market
Mutual Funds

N/A

10 20 percent

1020% per fund
(SEC Registered)
($1.00 NAV)
Highest rating from NRSRO.

Must also comply with Govt.

Code 53601(l) and 53601.6 (b)
and the weighted average to
maturity is less than 180 days.

Repurchase
Agreements*

92 Days

20 percent

20%
Signed security loan agreement
on file. Underlying securities
maintained at 102% of original
value. Reverse repurchase
agreements are specifically not
authorized under the Policy.

Supranational
Securities

5 Years

20 percent

10 % per issuer
United States dollar
denominated senior
unsecured unsubordinated
obligations issued or
unconditionally guaranteed
by the International Bank
for Reconstruction and
Development,
International Finance
74 City of Aliso Viejo 2024-253-24 Investment Policy Page 8

Corporation, or Inter-
American Development
Bank; rated AA or better
by two NRSROs.

Medium Term
Corporate Notes

5 Years

30 percent

Investment Type: Standard & Poor’s Moody’s

Prohibited Investments
State and Federal laws notwithstanding, any in vestment not specifically described herein including, but not limited to, reverse repurchase agreements, derivatives, options, futures, zero coupon bonds, inverse floaters, range notes, firs t mortgages or trust deeds, collateralized mortgage obligations (CMO’s), limited partnerships, real estate investments trusts (REIT’s), open-end mutual funds, closed-end mutual fu nds, mutual funds with a weighted average maturity greater than 180 days, unregulated and/or uninsured investment pools, common stock, preferred stock, commodities, precious m etals, securities with high price volatility, limited marketability (less than three active bi dders), securities that may default on interest payments, and any other speculative investment deemed inappropriate under the Prudent Investor standard are strictly prohibited. In addition, any investment transaction that might impair public confidence in the Aliso Viejo City government is to be avoided.

75 City of Aliso Viejo 2024-253-24 Investment Policy Page 9

Collateralization
Collateral for Certificates of Deposit (CD) an d Negotiated Certificates of Deposit (NCD) must comply with Government Code, Chapter 4, Bank Deposit Law Section 16500 et seq. and the Savings and Loan and Credit Union Deposit Law Government Code Section 16600 et seq.

In addition, if the CD is not FDIC insured or goes over the FDIC $250,000 limit, collateral is required equal to 100 percent of principal.

Collateral for Repurchase Agreements shall be 102 percent of market value of principal and accrued interest. Collateral can be either US Tr easury securities or Federal Agency securities.

This will provide an addition level of security due to inevitable changes in market conditions.

Collateral will always be held by an independent third party with whom the City has a current custodial agreement. A clearly marked eviden ce of ownership (safekeeping receipt) must be supplied to the City and retained. The right of collateral substitution is granted within the parameters and constraints of this Policy.

Investment Pools
Government sponsored investment pools (Pools) are permitted under California Government Code Section 53601 et seq . and are an excellent short-term investment option for cash management facilities. These pools can provide safety, liquidity, and yield in a single diversified investment. However, thoughtful investigation and due diligence are required both initially at time of purchase and on an ongoing basis with analysis to determine that the investment pool is being managed in a manner consistent with the objectives of the Policy. The following guidelines include, but are not limited to:
 The Pool shall have attained the highest ranking or the highest letter and numerical rating provided by not less than two na tionally recognized statistical rating organizations, or shall be insured by a municipal insurance corporation.  The Pool marks to market weekly at a minimum.
 The Pool provides comprehensive, timely monthly reports which include detailed transaction listings, report realized and unrealized gains and losses, provide accurate market values for each security, provide quality rating for individual securities, take delivery DVP, provide third party safekeeping of all investments, and for whom an audit is conducted annually by an independent auditor with no relationship to the Pool.

Money Market Mutual Funds
Money market mutual funds provide another safe , liquid, and diversified investment option for the City’s surplus capital. However, certain conditions need to be met both initially and on an ongoing basis. The money market may only invest in US Government securities permitted under this policy and under California Government Code Section 53601 et seq. with final stated maturities of one year or less “Government Money Market Funds.” In order to be an eligible money market inve stment under this section, the primary objective of the money market, as stated in the funds’ prospectus, is to maintain a constant $1.00 Net Asset Value (NAV). The following additional guidelines include, but are not limited to:
 The money market only invests in US Government securities, and the weighted average maturity of the portfolio is less than 180 days. 76 City of Aliso Viejo 2024-253-24 Investment Policy Page 10

 The fund shall be registered with the SEC.
 The money market shall have attained the highest ranking or the highest letter and numerical rating provided by not less than two nationally recognized statistical rating organizations and shall maintain these ratings for the duration of the investment.

It is also important to note that specific in vestments, detailed under the “Authorized and Suitable Investments” section, may be restricted to a shorter maturity.

The weighted average life of the portfolio may not exceed three (3) years in duration.

At a minimum, 15 percent of the portfolio sha ll remain liquid, accessible on demand by the City without restriction or penalty.

The investment portfolio shall be structured for liquidity purposes; therefore, 40 percent of the portfolio shall mature within 365-days .

Maturities will be selected based on a sufficiently detailed cash flow projection that facilitates selecting investment maturity dates to approx imately match the projected dates of budgeted expenditures. Once cash flow needs are matched, maturities are selected based on a “laddering strategy” and the shape of the yield curve.

Extensions in the maximum maturity and averag e weighted life of the portfolio must be supported by detailed cash flow forecasts demonstrating the adequacy of cash from maturing assets to meet one hundred twenty-five percent (125%) of monthly expenditures for each prospective quarter, ending with the current maximum including capital expenditures funded on a pay-as-you-go basis. Recommendations to extend maturities must be reviewed and approved by the City Manager and City Council.

Qualifications for Financial Institutions and Broker/Dealer’s The Treasurer will maintain a list of qualifie d financial institutions and broker/dealers authorized to transact business with the City, as stated in Appendix “B”.

If the City utilizes a SEC registered external investment advisor, the advisor shall maintain a list of authorized broker-dealers and compl ete the appropriate due diligence required by the SEC. The external investment advisor may use its own list of approved broker/dealers and financial institutions for investment purposes on behalf of the City. The investment advisor shall submit the list of approved broker/dealers to the Finance Director/City Treasurer on an annual basis. The Finance Director/City Treasur er may restrict the use of a broker/dealer which may be deemed unsuitable.

The financial entities eligible to transact investment business with the City are:

I. Federal Reserve Bank:

Direct purchase of U.S. Treasury Bills, No tes, and Bonds using primary government dealers as designated by the Federal Reserve are exempt from quality requirements and are encouraged due to commission or mark-up discounts.

II. Nationally or State Chartered Banks, Savings and Loans, and Credit Unions:

The City may purchase investments offered fr om Banks, Savings and Loans, and Credit 77 City of Aliso Viejo 2024-253-24 Investment Policy Page 11

Unions provided the institutions are:
 Nationally or State Chartered Institutions.
 Registered as investment securities dealers.
 Ranked in the top 15 percent of institutions within their respective peer group.  The signatures of two individuals shall be required for the opening and closing of any bank account (the Treasurer, City Manager, Mayor, or Mayor Pro Tem).

III. Broker/Dealers:

The City will purchase investments from primary dealers whenever possible. However, if an investment deemed appropriate for the portfolio is not available through the primary market, then the Treasurer may use an author ized broker/dealer from the pre-approved list of broker/dealers on record.

For a broker/dealer to be considered for pl acement on the pre-approved list, they must comply with the following:
 Primary or Regional dealers that qualify for SEC Rule 15c3-1  Provide audited financial statements from the two most frequent years  A statement certifying that the institut ion has reviewed the City’s Investment Policy and California Government Code Section 53600 et seq . and that all securities offered to the City shall comply fully with all provisions of the Policy and the California Government Code.
 The signatures of two individuals shall be required for the opening and closing of any broker/dealer account (the Trea surer, City Manager, Mayor or Mayor Pro Tem). The Accounting Officer, who is independent of the investment function, shall keep a record of all opened and closed accounts. On an annual basis, the Accounting Officer shall provide a list of accounts to the independent auditor.
 Settlement of securities traded thro ugh qualified broker/dealers shall occur trade date plus one or two days (depen ding upon security type), the current industry standard. New issue securities may have longer settlements, but none shall be greater than three weeks.

Diversification Guidelines and Risks
The City recognizes diversification is an invest ment strategy that will mitigate risk in the investment portfolio. The City’s investment portfolio shall be diversified to avoid incurring unreasonable and avoidable risks with regard to specific investment types. Within investment types, the City shall also maintain a mix of securities to avoid concentrations within individual financial institutions, geographic areas, industry types, and maturities. 78 City of Aliso Viejo 2024-253-24 Investment Policy Page 12

The City will only invest in fixed rate, fixed maturity securities and, with the exception of U.S.

Treasury securities or the Local Agency Investment Fund (LAIF), no more than 60 percent of the investment portfolio shall be invested in any single investment type or financial institution.

Safekeeping and Custody
All security transactions, including collateral fo r repurchase agreements and certificates of deposit, shall be transacted on a Delivery vs. Payment (DVP) basis. This means that the securities shall be delivered to the City or the City’s designated custodian upon receipt of payment by the City.

All securities that may be purchased, includ ing collateral, shall be held by a third-party custodian designated by the Treasurer whenever possible. These securities shall be held in the City’s name and control, and the third-party custodian shall be evidenced by safekeeping receipts. The third-party custodian shall send the City, on a monthly basis, a summary of safekeeping assets, and this statement shall be reconciled to the City’s records on a monthly basis. Securities held in custody for the City shall be independently audited on an annual basis to verify investment holdings.

Performance Standards and Evaluation
Investment performance is continually moni tored and evaluated by the City Treasurer.

Investment activity reports are generated on a monthly basis for presentation to the City Manager and City Council.

The weighted average maturity of the pooled portf olio shall not exceed three years and shall be designated to attain a market average rate of return. The market average rate of return will be determined by a custom benchmark that represents the prominent and persistent characteristics of the portfolio.

An annual audit of the City’s Investment Poli cy, practices, procedures, and portfolio status will be conducted by an independent auditor of all items including, but not limited to, items specified in the Audit Checklist provided in the City’s Procedure Manual. The auditor will provide the City Manager and City Council with written observations and recommendations regarding the adequacy of investment controls.

Qualifications and Continuing Education
The City Treasurer shall be a City employee or contract employee. The Treasurer shall be selected on the basis of educational backgrou nd and experience relevant to the Treasury function.

GLOSSARY OF TERMS
Accrued Interest - Interest earned but not yet received.

Active Deposits - Funds which are immediately required for disbursement.

Agencies - Federal agency securities and/or Government-sponsored enterprises.

Amortization - An accounting practice of gradually decreasing (inc reasing) an asset's book value by spreading its depreciation (accretion) over a period of time.