Aliso Viejo City Council
June 18, 2025

AGENDA

ALISO VIEJO CITY COUNCIL
WEDNESDAY, JUNE 18, 2025
7:00 PM REGULAR MEETING

CITY HALL

COUNCIL CHAMBERS
12 JOURNEY

ALISO VIEJO, CA

Mayor Tiffany Ackley

Mayor Pro Tem Max Duncan
Councilmember Richard Hurt
Councilmember Mike Munzing
Councilmember Tim Zandbergen

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 JANET MARTINEZ

CITY MANAGER CITY ATTORNEY 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 Regular Meeting

ROLL CALL

PLEDGE OF ALLEGIANCE:

1. SPECIAL PRESENTATIONS:

1.1 BUSINESS OF THE MONTH - PHILZ COFFEE

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.

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 wi ll 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 ready by title, and further reading is waived.

4.2 APPROVAL OF MINUTES
Recommended Action: Approve the minutes as submitted for the June 4, 2025 Regular Meeting.

Draft Minutes - June 4, 2025 Regular Meeting

4.3 ACCOUNTS PAYABLE
Recommended Action: Ratify accounts payable checks and electronic funds transfers issued between May 23, 2025, and June 5, 2025, in the amount of $189,143.47.

Staff Report
Attachment 1 - Accounts Payable Report

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4.4 INVESTMENT POLICY FOR FISCAL YEAR 2025-26
Recommended Action: Adopt a Resolution approving the Investment Policy for Fiscal Year 2025-26 and rescinding Resolution No. 2024-23 in its entirety.

Staff Report
Attachment 1 - Resolution
Attachment 2 - FY 2025-26 Investment Policy
Attachment 3 - FY 2025-26 Investment Policy - Redline
Attachment 4 - Resolution No. 2024-23

4.5 APPROPRIATIONS LIMIT – FISCAL YEAR 2025-26
Recommended Action: Adopt a Resolution setting the Proposition 4 (GANN) Appropriations limit for Fiscal Year (FY) 2025-26 at $62,243,329.

Staff Report
Attachment 1 - Resolution
Attachment 2 - GANN Limit Calculation

4.6 FISCAL YEAR 2025 -26 PROJECT LIST FOR ROAD MAINTENANCE AND REHABILITATION ACCOUNT FUNDING (SB 1)
Recommended Action: Adopt a Resolution of the City Council of the City of Aliso Viejo which adopts a list of projects for fiscal year 2025-26 funded by SB 1: The Road Repair and Accountability Act of 2017.

Staff Report
Attachment 1 - Resolution

4.7 RENEWED MEASURE M ELIGIBILITY
Recommended Action:

1. Adopt a 7-year Capital Improvements Program (CIP) for Street Projects; and

2. Adopt a Resolution of the City Council of the City of Aliso Viejo concerning the status of the Circulation Element and Mitigation Fee Program.

Staff Report
Attachment 1 - 7-Year CIP for Street Projects
Attachment 2 - Resolution

4.8 AGREEMENTS WITH RK ENGINEERING GROUP, INC. AND ADVANTEC CONSULTING ENGINEERS, INC. FOR ON -CALL TRAFFIC ENGINEERING

SERVICES
Recommended Action:

1. Approve an agreement with RK Engineering Group, Inc. to perform on-call traffic engineering services;

2. Approve an agreement with Advantec Consulting Engineers, Inc. to perform on- call traffic engineering services;

3. Authorize the City Manager to execute a professional services agreement with RK Engineering Group, Inc. for an amount not to exceed $225,000; and

4. Authorize the City Manager to execute a professional services agreement with Advantec Consulting Engineers, Inc. for an amount not to exceed $50,000.

Staff Report
Attachment 1 - Agreement with RK Engineering Group, Inc.

Attachment 2 - Agreement with Advantec Consulting Engineers, Inc.

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4.9 AGREEMENT WITH ITERIS, INC. ON -CALL TRAFFIC ENGINEERING SERVICES

FOR TRAFFIC SIGNAL OPERATIONS
Recommended Action:

1. Approve an agreement with Iteris, Inc. to perform on- call traffic engineering services for traffic signal operations; and

2. Authorize the City Manager to execute a professional services agreement with Iteris, Inc. for an amount not to exceed $200,000.

Staff Report
Attachment 1 - Agreement

4.10 AGREEMENT WITH GMU ENGINEERS AND GEOLOGISTS FOR PAVEMENT

MANAGEMENT PLAN UPDATE SERVICES
Recommended Action:

1. Approve an agreement with GMU Engineers and Geologists to perform pavement management plan update services; and

2. Authorize the City Manager to execute a professional services agreement with GMU Engineers and Geologists for an amount not to exceed $74,970.

Staff Report
Attachment 1 - Agreement

4.11 SECOND AMENDMENT TO THE AGREEMENT WITH NIEVES LANDCSAPE, INC.

FOR LANDSCAPE MAINTENANCE SERVICES
Recommended Action:

1. Approve a second amendment to the agreement with Nieves Landscape, Inc. to perform landscape maintenance services that renews the agreement for an additional one -year term and increases the total compensation under the agreement by $200,000 for a total amount of $1,090,000; and

2. Authorize the City Manager to execute the second amendment to the agreement.

Staff Report
Attachment 1 - Agreement Amendment

4.12 SECOND AMENDMENT TO THE AGREEMENT WITH GMU ENGINEERS AND

GEOLOGISTS FOR ON -CALL GEOTECHNICAL AND MATERIAL TESTING

SERVICES
Recommended Action:

1. Approve a second amendment to the agreement with GMU Engineers and Geologists to perform geotechnical and materials testing services that renews the agreement for an additional one-year term and increases the total compensation under the agreement by $50,000 for a total agreement amount of $300,000; and

2. Authorize the City Manager to execute the first amendment to the agreement.

Staff Report
Attachment 1 - Agreement Amendment

4.13 SECOND AMENDMENT TO THE PROFESSIONAL SERVICES AGREEMENT WITH MIKE LINARES FOR COMMUNITY DEVELOPMENT BLOCK GRANT (“CDBG”)

ADMINISTRATIVE SERVICES
Recommended Action: Approve and authorize the City Manager to execute a Second Amendment to the professional services agreement with Mike Linares, Inc. for CDBG Consultant

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Services to increase the compensation amount by $31,500 for a total of $144,000, and extending the term to June 30, 2026.

Staff Report
Attachment 1 - Agreement Amendment

4.14 FIRST AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT WITH ATLAS

PLANNING SOLUTIONS TO PROVIDE UPDATE THE SAFETY ELEMENT Recommended Action: Approve and authorize the City Manager to execute the First Amendment to the professional services agreement with Atlas Planning Solutions for the Safety Element update, increasing compensation by $28,515 for a total of $69,350, and extending the agreement term to June 30, 2026.

Staff Report
Attachment 1 - Agreement Amendment
Attachment 2 - Original Agreement

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 July 2, 2025.

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Regular Meeting Minutes

CITY OF ALISO VIEJO

CITY COUNCIL MINUTES

REGULAR MEETING
JUNE 4, 2025, 7:00 PM
Council Chambers, City Hall, 12 Journey
Aliso Viejo, California

CALL TO ORDER: Mayor Ackley called the Regular Meeting of the City Council of the City of Aliso Viejo to order at 7:01 p.m.

ROLL CALL

PRESENT: MAYOR TIFFANY ACKLEY

MAYOR PRO TEM MAX DUNCAN
COUNCILMEMBER RICHARD W. HURT

COUNCILMEMBER MIKE MUNZING
COUNCILMEMBER TIM A. ZANDBERGEN

STAFF PRESENT: MITZI ORTIZ, CITY MANAGER

SCOTT SMITH, CITY ATTORNEY

JANET MARTINEZ, CITY CLERK

ANN EIFERT, FINANCIAL SERVICES DIRECTOR

SHAUN PELLETIER, PUBLIC WORKS DIRECTOR

SO KIM, COMMUNITY DEVELOPMENT DIRECTOR

LIZZY MENDOZA, RECREATION & COMMUNITY SERVICES MANAGER

ISAAC AZIZ, INFORMATION TECHNOLOGY MANAGER
CAPT. RYAN BUHR, CHIEF OF POLICE SERVICES

PLEDGE OF ALLEGIANCE: A resident, Amelia, along with her mother and sister, led the pledge of allegiance.

1. SPECIAL PRESENTATIONS:

1.1 PROCLAMATION - WILDFIRE AWARENESS AND PREVENTION SEASON

Mayor Ackley presented the proclamation to OCFA Division Chief Mike Summers. Chief Summers expressed his appreciation and commented on the importance of being prepared during fire season.

2. ADDITIONS, DELETIONS, REORDERING TO THE AGENDA:

None.

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Regular Meeting Minutes

3. COMMUNITY INPUT:

1. Bret Pool expressed traffic speed and safety concerns on Hummingbird Lane.

2. Briana Heathcott expressed traffic safety concerns on Hummingbird Lane.

3. Jessie Stevens expressed traffic safety concerns on Hummingbird Lane.

4. Payal Avellan expressed traffic safety concerns on Hummingbird Lane.

4. CONSENT CALENDAR:

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

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

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 ready by title, and further reading is waived.

4.2 APPROVAL OF MINUTES

Recommended Action: Approve the minutes as submitted for the May 21, 2025, Regular Meeting.

4.3 ACCOUNTS PAYABLE

Recommended Action: Ratify accounts payable checks and electronic funds transfers issued between May 9, 2025, and May 22, 2025, in the amount of $453,031.91.

4.4 TREASURER’S STATEMENT – APRIL 2025

Recommended Action: Receive and file the April 2025 Treasurer’s Statement.

4.5 AGREEMENT WITH TEAM ONE MANAGEMENT FOR JANITORIAL SERVICES

Recommended Action:

1. Approve agreement with Team One Management to perform Janitorial Services; and

2. Authorize the City Manager to execute a maintenance services agreement with Team One Management for an amount not to exceed $633,600.

4.6 AGREEMENT FOR FY 2025-26 LAW ENFORCEMENT SERVICES

7

Regular Meeting Minutes

Recommended Action: Authorize the City Manager to execute the agreement with the County of Orange for FY 2025-26 law enforcement services.

4.7 AGREEMENT FOR FY 2025-26 CROSSING GUARD SERVICES

Mayor Ackley suggested a crossing guard at Iglesia Park Community Center.

Recommended Action: Authorize the City Manager to execute the agreement with All City Management Services, Inc. for school crossing guard services for FY 2025-26.

Motion: Mayor Ackley moved and Mayor Pro Tem Duncan seconded to approve the recommended action. Motion carried 5-0.

5. PUBLIC HEARINGS:

5.1 REPORT ON STAFF VACANCIES, RECRUITMENT, AND RETENTION EFFORTS

City Manager Mitzi Ortiz provided an overview. Staff responded to questions regarding classification and compensation studies and analyses. Mayor Ackley opened the public hearing. There were n o public requests to spea k. Mayor Ackley closed the public hearing.

Recommended Action:

1. Conduct the public hearing; and

2. Receive and file the report on staff vacancies, recruitment, and retention efforts.

No further action was taken.

6. DISCUSSION:

6.1 PROPOSED ANNUAL BUDGET FOR FISCAL YEAR 2025-26

City Manager Mitzi Ortiz introduced Finance Director Ann Eifert, who provided an overview. Staff responded to questions regarding the general fund, capital improvements, and pending results of utility cost evaluation. Council commented on long-term impacts , local retail spending and strategic economic planning. Council discussion ensued related to future budget planning.

Recommended Action:

1. Adopt Resolution No. 2025-04 adopting the Annual Budget for Fiscal 2025-26; and

2. Adopt Resolution No. 2025-05 approving City Salary Schedules.

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

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Regular Meeting Minutes

7. CITY MANAGER' S REPORT:

City Manager Mitzi Ortiz announced summer camp registration and scholarships; Shakespeare by the Sea As You Like It at Soka University on July 24, 2025 at 7:00 p.m .; and the digital summer recreation brochure at avcity.org.

8. ANNOUNCEMENTS / COUNCIL COMMENTS / COMMITTEE UPDATES:

Councilmember Munzing:
 Attended OCFA Budget and Finance Committee Meeting
 Attended the 34th Annual Memorial Day Program at El Toro Memorial Park  Attended OCFA Best and Bravest Awards Dinner
 Congratulated OCFA Division Chief Mike Summers on receiving OCFA’s Medal of Valor

Councilmember Zandbergen:
 Attended the 34th Annual Memorial Day Program at El Toro Memorial Park

Councilmember Hurt:
 Attended SJHTCA of Board of Directors Meeting
 Attended OC Mosquito and Vector Control Board of Trustees Meeting  Provided update on Aliso Viejo library project

Mayor Pro Tem Duncan:
 Commented on Aliso Viejo Little League’s advancement to Championships  Expressed enthusiasm for the upcoming Aliso Niguel High School graduation  Commented on upcoming summer break for local students  Extended well wishes to local high school graduates and their parents

Mayor Ackley:
 Expressed regret on inability to attend Aliso Niguel High School graduation  Attended Wood Canyon Elementary School’s 30th Year Anniversary event  Attended Don Juan Avila Elementary School’s 30th Year Anniversary event  Wished the Class of 2025 a happy graduation

9. ADJOURNMENT: Mayor Ackley adjourned the meeting at 8:06 p.m. to the regularly scheduled City Council meeting of June 18, 2025.

Respectfully submitted: Approved by:

________________________ ________________________

JANET MARTINEZ TIFFANY ACKLEY

CITY CLERK MAYOR
9 City of Aliso Viejo

AGENDA ITEM

DATE: June 18, 2025

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 May 23, 2025, and June 5, 2025, in the amount of $189,143.47.

Fiscal Impact:

Expenditures in the amount of $189,143.47.

Background:

The City issues accounts payable checks on a bi-weekly basis and presents it 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 May 23, 2025, and June 5, 2025, for $189,143.47, 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
10 Accounts Payable
Description (Item)Vendor Name Amount
101 - GENERAL FUND
APR'25 BBK APPLICANT INITIATED REIMB (AIR)-COMMONSBEST BEST & KRIEGER 43.00 APR'25 CAA KAISER GRADING - R.BRUNELLCHARLES ABBOTT ASSOC INC 367.50 APR'25 CAA ST MARYS GRADING - R.BRUNELLCHARLES ABBOTT ASSOC INC 262.50 APR'25 CAA SCE - R.BRUNELLCHARLES ABBOTT ASSOC INC 157.50 APR'25 CAA WOODMAN TEL - R.BRUNELLCHARLES ABBOTT ASSOC INC 105.00 APR'25 CAA ALISO CREEK GRADING - R.BRUNELLCHARLES ABBOTT ASSOC INC 105.00 APR'25 CAA COX - R.BRUNELLCHARLES ABBOTT ASSOC INC 105.00 APR'25 CAA ATT - R.BRUNELLCHARLES ABBOTT ASSOC INC 105.00 APR'25 CAA COX - R.BRUNELLCHARLES ABBOTT ASSOC INC 1,155.00 APR'25 CAA MNWD - R.BRUNELLCHARLES ABBOTT ASSOC INC 840.00 APR'25 CAA ST MARYS GRADING - S.WILSONCHARLES ABBOTT ASSOC INC 190.00 APR'25 CAA KAISER GRADING - S.WILSONCHARLES ABBOTT ASSOC INC 142.50 2019-1850_1851_1851_26600/700/750 AV PKWY_GLAUKOSGLAUKOS CORPORATION 20,000.00 CD-2025-00003_135 MATISSE CIR_ANTIS ROOFINGANTIS ROOFING & WATERPROOFING 700.00 CD-2025-00051_26886 LA PAZ RD_NT THOMAS CONSTN.T. THOMAS CONSTRUCTION, INC 500.00 24,778.00

CITY COUNCIL
MM - OCFA BEST & BRAVEST EVENT 5/30 TICKETORANGE COUNTY FIRE AUTHORITY FOUNDATION 65.00 MO 4/24 TEQUILA -RH CAL CITIES SAC CONF-MEAL-LUNCHUS BANK PURCHASING CARD PROGRAM 24.63 MO 5/19 CLEAVER - TZ ICSC LV CONF-DINNERUS BANK PURCHASING CARD PROGRAM 97.93 MO 5/19 CLEAVER - RH ICSC LV CONF-DINNERUS BANK PURCHASING CARD PROGRAM 97.93 MO 5/19 CLEAVER - TA ICSC LV CONF-DINNERUS BANK PURCHASING CARD PROGRAM 97.93 MO 5/18 TERRACE POINT CAFE -TZ ICSC LV CONF-LUNCHUS BANK PURCHASING CARD PROGRAM 41.52 MO 4/24 CAFETERIA-RH CAL CITIES SAC CONF-MEAL-DINNUS BANK PURCHASING CARD PROGRAM 34.13 MO 5/20 JAKE & ELI - TZ ICSC LV CONF-LUNCHUS BANK PURCHASING CARD PROGRAM 29.15 MO 5/20 JAKE & ELI - RH ICSC LV CONF-LUNCHUS BANK PURCHASING CARD PROGRAM 29.15 MO 5/19 LAS VEGAS CONV CTR - TA ICSC LV CONF-LUNCHUS BANK PURCHASING CARD PROGRAM 25.25 MO 5/19 LAS VEGAS CONV CTR - RH ICSC LV CONF-LUNCHUS BANK PURCHASING CARD PROGRAM 25.25 CITY COUNCIL TOTAL: 567.87

CITY MANAGER
MO 5/20 STARBUCKS - ICSC LV CONF-BREAKFASTUS BANK PURCHASING CARD PROGRAM 16.62 MO 4/25 HYATT - CAL CITIES SAC CONF-HOTELUS BANK PURCHASING CARD PROGRAM 534.24 MO 5/19 CLEAVER - ICSC LV CONF-DINNERUS BANK PURCHASING CARD PROGRAM 97.94 MO 5/18 UBER - ICSC LV CONFUS BANK PURCHASING CARD PROGRAM 17.78 MO 5/18 TERRACE POINT CAFE - ICSC LV CONF-LUNCHUS BANK PURCHASING CARD PROGRAM 41.53 MO 5/21 UBER - ICSC LV CONFUS BANK PURCHASING CARD PROGRAM 39.28 MO 5/19 UBER - ICSC LV CONFUS BANK PURCHASING CARD PROGRAM 37.61 MO 5/20 UBER - ICSC LV CONFUS BANK PURCHASING CARD PROGRAM 37.59 MO 4/25 UBER - CAL CITIES SAC CONFUS BANK PURCHASING CARD PROGRAM 34.42 MO 5/20 THE WESTIN - ICSC LV CONF-HOTELUS BANK PURCHASING CARD PROGRAM 743.76 MO 4/24 CAFETERIA-CAL CITIES SAC CONF-MEAL-DINNERUS BANK PURCHASING CARD PROGRAM 34.13 MO 5/19 UBER - ICSC LV CONFUS BANK PURCHASING CARD PROGRAM 31.12 MO 5/18 UBER - ICSC LV CONFUS BANK PURCHASING CARD PROGRAM 29.72 MO 5/19 UBER - ICSC LV CONFUS BANK PURCHASING CARD PROGRAM 20.60 MO 5/20 JAKE & ELI - ICSC LV CONF-LUNCHUS BANK PURCHASING CARD PROGRAM 29.16 MO 5/19 LAS VEGAS CONV CTR - ICSC LV CONF-LUNCHUS BANK PURCHASING CARD PROGRAM 25.26 MO 4/23 HYATT - CAL CITIES SAC CONF-MEAL-DINNERUS BANK PURCHASING CARD PROGRAM 20.66 MO 5/20 UBER - ICSC LV CONFUS BANK PURCHASING CARD PROGRAM 20.77 MO 4/24 TEQUILA MUS-CAL CITIES SAC CONF-MEAL-LUNCHUS BANK PURCHASING CARD PROGRAM 24.63 MO 5/20 UBER - ICSC LV CONFUS BANK PURCHASING CARD PROGRAM 33.09 MO 4/28 CAL ED - CONF REGISTRATIONUS BANK PURCHASING CARD PROGRAM 895.00 MO 5/19 UBER - ICSC LV CONFUS BANK PURCHASING CARD PROGRAM 22.57 MO 5/19 STARBUCKS - ICSC LV CONF-BREAKFASTUS BANK PURCHASING CARD PROGRAM 15.97 MO 4/23 STARBUCKS - CAL CITIES SAC CONF-MEALUS BANK PURCHASING CARD PROGRAM 6.90 CITY MANAGER TOTAL: 2,810.35
11 Description (Item)Vendor Name Amount

HUMAN RESOURCES
JUL'25 EAP PROGRAMHEALTH AND HUMAN RESOURCE CENTER INC 102.90 JB 5/13 COSTCO-FOOD FOR MANDATED REPORTER TRNGUS BANK PURCHASING CARD PROGRAM 115.00 HUMAN RESOURCES TOTAL: 217.90

CITY ATTORNEY
APR'25 BBK MAJOR GENERAL PLAN UPDATE (SPEC PROJ)BEST BEST & KRIEGER 462.40 CITY ATTORNEY TOTAL: 462.40

FINANCE
AE 5/08 USPS-POSTAGE AVRANCH FOUNDATION TAX FILINGUS BANK PURCHASING CARD PROGRAM 10.10 AE 5/02 CSMFO MEMBERSHIP - MANAGEMENTUS BANK PURCHASING CARD PROGRAM 150.00 AE 4/24 CAPPO ANNUAL MEMBERSHIPUS BANK PURCHASING CARD PROGRAM 145.00 FINANCE TOTAL: 305.10

NON-DEPARTMENTAL
APR-JUN'25 38 COLONIAL WAY HOA FEESVANTIS MAINTENANCE CORPORATION 415.66 BUS CARDS - J. BERRYIPROMOTEU.COM INC 64.86
EM 5/08 WHITE CAP-SELF-LEVEL SIDEWALK J VISTA PARKUS BANK PURCHASING CARD PROGRAM 316.37 EM 5/01 O'REILLY-BATTERY CABLE RAV4 LP 1538559US BANK PURCHASING CARD PROGRAM 18.31 EM 5/01 O'REILLY-BATTERY TERMINAL RAV4 LP 1538559US BANK PURCHASING CARD PROGRAM 18.31 EM 5/20 O'REILLY - FLEET ENGINE FLUIDSUS BANK PURCHASING CARD PROGRAM 27.99 EM 5/19 BLISS CW - F150 CAR WASHUS BANK PURCHASING CARD PROGRAM 35.00 EM 5/02 O'REILLY-WIPERS&ENG FLUIDS RAV4 LP 1538559US BANK PURCHASING CARD PROGRAM 81.84 EM 4/22 AMZ TOWING-RAV4 LP 1574835 DEALER/REPAIRSUS BANK PURCHASING CARD PROGRAM 175.00 EM 5/02 O'REILLY-WIPERS & MISC.RAV4 LP 1574835US BANK PURCHASING CARD PROGRAM 109.85 EM 5/01 COSTCO-REPLACEMENT BATTERY RAV4 LP 1538559US BANK PURCHASING CARD PROGRAM 136.76 JUN'25 35 PLAYA CIR HOA FEESGLENWOOD MAINTENANCE CORPORATION 24.00 JUN'25 BALANCE - 35 PLAYA CIR HOA FEEHARBOR STATION MAINTENANCE 8.50 MAY'25 89 PLAYA CIR HOA FEESHARBOR STATION MAINTENANCE 177.50 ACCT#64101 VISTA WATER SVCMOULTON NIGUEL WATER DIST 357.76 PC 3/24 3/30 STARBUCKS - DLUS BANK PURCHASING CARD PROGRAM 20.00 SP 4/25 AN TOYOTA SCION-2020 RAV4 BATTERYUS BANK PURCHASING CARD PROGRAM 219.13 NON-DEPARTMENTAL TOTAL: 2,206.84
C. S. ADMINISTRATION
NOV'24 TREE LIGHTING 2024 - PVM SUPPORTPV MAINTENANCE INC 315.02 DEC'24 TREE LIGHTING 2024 - PVM SUPPORTPV MAINTENANCE INC 3,937.92 EM RCS 5/02 YELP- AVR PROMOTIONUS BANK PURCHASING CARD PROGRAM 270.00 EM RCS 5/12 CPRS-FINANCE TRAININGUS BANK PURCHASING CARD PROGRAM 519.00 JB 5/13 COSTCO-FOOD FOR TRAININGSUS BANK PURCHASING CARD PROGRAM 64.23 JB 5/13 SMART & FINAL-FOOD FOR TRAININGSUS BANK PURCHASING CARD PROGRAM 69.04 JB 5/15 SURFIN DONUTS-INSTRUCTOR MEETINGUS BANK PURCHASING CARD PROGRAM 35.05 JB 4/24 CPRS-SPRING BROCHURE EXCHANGEUS BANK PURCHASING CARD PROGRAM 10.00 C. S. ADMINISTRATION TOTAL: 5,220.26

IGLESIA PARK
APR'25 TREE TRIMMING SERVICE IGLESIA PARKGREAT SCOTT TREE SERVICE, INC 5,931.80 4/09/25-5/09/25 MTR#4114 IRRIG IGLESIA PARK WATEREL TORO WATER DISTRICT 622.72 4/09/25-5/09/25 MTR#3499 IRRIG IGLESIA PARK WATEREL TORO WATER DISTRICT 673.54 EM 4/22 DUNN-EDWARDS- ANTI-GRAFFITI IGLESIA PARKUS BANK PURCHASING CARD PROGRAM 64.64 EM 5/16 HOME DEPOT-PAINT LT POLE BASE IGLESIA PKUS BANK PURCHASING CARD PROGRAM 75.27 EM 4/22 HOME DEPOT-CONCRETE CURB MTL IGLESIA PARKUS BANK PURCHASING CARD PROGRAM 227.22 IGLESIA PARK TOTAL: 7,595.19

IGLESIA BUILDING
MAY'25 IGLESIA JANITORIAL SERVICESTEAM ONE MANAGEMENT SERVICES 950.00 4/09/25-5/09/25 MTR#5016 IGLESIA PARK BLDG WATEREL TORO WATER DISTRICT 268.10 KB 4/22 HOME DEPOT - IGLESIA REPAIRSUS BANK PURCHASING CARD PROGRAM 106.11 IGLESIA BUILDING TOTAL: 1,324.21

PLANNING
MAY'25 AFFORD. HOUSING CONSULTANT SERVICESREBECCA J CAHA 1,762.50 APR'25 CONSULTING SERVICES - ICSC PREPARATIONKOSMONT & ASSOCIATES 7,193.79 MO 5/19 LAS VEGAS CONV CTR - SK ICSC LV CONF-LUNCHUS BANK PURCHASING CARD PROGRAM 25.25 MO 5/19 STARBUCKS - SK ICSC LV CONF-BREAKFASTUS BANK PURCHASING CARD PROGRAM 15.96 MO 5/20 STARBUCKS - SK ICSC LV CONF-BREAKFASTUS BANK PURCHASING CARD PROGRAM 16.61 MO 5/19 CLEAVER - SK ICSC LV CONF-DINNERUS BANK PURCHASING CARD PROGRAM 97.93 MO 5/18 TERRACE POINT CAFE -SK ICSC LV CONF-LUNCHUS BANK PURCHASING CARD PROGRAM 41.53 MO 5/20 JAKE & ELI - SK ICSC LV CONF-LUNCHUS BANK PURCHASING CARD PROGRAM 29.16 12 Description (Item)Vendor Name Amount
FY25-26 PDAOC ANNUAL MEMBERSHIP DUESPLANNING DIRECTORS ASSN OF OC 175.00 SK 5/08 WESTIN-ICSC ANNUAL CONF HOTEL 5/18-5/20US BANK PURCHASING CARD PROGRAM 743.76 PLANNING TOTAL: 10,101.49

BUILDING
SK 5/15 RALPHS-BLDG OFFICIAL RETIREMENT SUPPLYUS BANK PURCHASING CARD PROGRAM 27.16 BUILDING TOTAL: 27.16

CODE ENFORCEMENT
SK 5/08 EXTRA SPACE-CONFISCATED TACO STANDUS BANK PURCHASING CARD PROGRAM 631.20 CODE ENFORCEMENT TOTAL: 631.20

ENGINEERING (GENERAL)
JUN'25 MURCAL IOT SMARTCOMMAND MONITORING SERVICEMURPHY SWITCH OF CA 450.00 APR'25 LANDSCAPE INSPECTION SERVICESRICHARD FISHER ASSOCIATES 4,386.50 MAY'25 LOCKSMITH SERVICES - CH PADLOCKS GATESENTRY CONTROL, INC 131.13 APR'25 CAA NPDES SERVICESCHARLES ABBOTT ASSOC INC 9,662.50 APR'25 CAA SOLID WASTE SERVICESCHARLES ABBOTT ASSOC INC 6,527.50 SP 4/29 APWA - PWX CONFERENCE 8/17-8/20/25US BANK PURCHASING CARD PROGRAM 1,009.00 ENGINEERING (GENERAL) TOTAL: 22,166.63

STREET MAINTENANCE
APR'25 CAA STREET INVESTIGATIONSCHARLES ABBOTT ASSOC INC 5,145.00 EM 4/21 HOME DEPOT-PAINT TRAFFIC SIGNAL PED HOUSINUS BANK PURCHASING CARD PROGRAM 40.30 EM 4/23 WHITE CAP - STREET CONCRETE MATERIALSUS BANK PURCHASING CARD PROGRAM 152.98 STREET MAINTENANCE TOTAL: 5,338.28

LAW ENFORCEMENT-OTHER
5/11/25-5/24/25 460 HRS-CROSSING GUARD SERVICESALL CITY MANAGEMENT SERVICES 15,419.20 AE 4/29 DMV REGISTRATION - POLICE MOTORCYCLEUS BANK PURCHASING CARD PROGRAM 698.00 AE 4/29 DMV REGISTRATION - 2% CREDIT CARD FEEUS BANK PURCHASING CARD PROGRAM 13.96 LAW ENFORCEMENT-OTHER TOTAL: 16,131.16
EOC
AE 4/24 AV SELF STORAGE - PUBLIC SAFETY - APR'25US BANK PURCHASING CARD PROGRAM 510.00 AE 4/30 AV SELF STORAGE - PUBLIC SAFETY - MAY'25US BANK PURCHASING CARD PROGRAM 475.00 DL 4/14 EXTRA SPACE - OFFSITE STORAGE #A1554US BANK PURCHASING CARD PROGRAM 336.00 DL 4/10 AMAZON - AED BATTERIESUS BANK PURCHASING CARD PROGRAM 89.88 EOC TOTAL: 1,410.88
GENERAL FUND TOTAL: 101,294.92
102 - GEN. FD-CITY HALL

NON-DEPARTMENTAL
APR'25 CH JANITORIAL SUPPLIESBRADY INDUSTRIES OF CALIFORNIA LLC 186.72 MAY'25 CH JANITORIAL SERVICESTEAM ONE MANAGEMENT SERVICES 2,700.00 FY24-25 CH SCAQMD HOT SPOTS PROGRAM FEESOUTH COAST AIR QUALITY MGMT DIST 167.47 MAY'25 CH INTERIOR PLANT MAINTENANCEFOSTERS' GARDENS INC 115.00 MAY'25 HVAC PREVENTATIVE MAINTENANCE - CHHARBOR POINTE AIR CONDITIONING & CONTROL SYSTEMS, … 1,786.65 JUN'25 CH ASO ASSOCIATION DUESPACIFIC PARK II ASSOCIATION 611.00 MAY'25 CH ELEVATOR-EMERGENCY LIGHT BATTERY REPLTHURSTON ELEVATOR CONCEPTS INC 72.49 EM 5/08 HOME DEPOT-ANCHORS & MISC CHUS BANK PURCHASING CARD PROGRAM 33.64 KB 5/06 HIRSCH PIPE & SUPPLY-CH KITCHEN SINK FAUCEUS BANK PURCHASING CARD PROGRAM 87.92 KB 4/28 AMAZON - CH LIGHTING TOOLSUS BANK PURCHASING CARD PROGRAM 26.02 ACCT#65408/65407/65406 CH WATER SVCMOULTON NIGUEL WATER DIST 631.71 NON-DEPARTMENTAL TOTAL: 6,418.62
GEN. FD-CITY HALL TOTAL: 6,418.62
103 - GF-AV RECREATION SERVICES
REFUND FACILITY RENTAL_REC#87024028_SUSAN PARMELEEWELLNESS & PREVENTION CENTER 1,909.00 REFUND FEE_REC#87024028_SUSAN PARMELEEWELLNESS & PREVENTION CENTER (250.00) MAY'25 AJ CHOI - NON RESIDENT REFUND JAT002AJ CHOI 5.00 MAY'25 AJ CHOI - CAMP REFUND JAT002AJ CHOI 144.00
1,808.00

RECREATION SERVICES
APR-MAY'25 AVR JANITORIAL SUPPLIESBRADY INDUSTRIES OF CALIFORNIA LLC 924.55 MAY'25 AVR JANITORIAL SUPPLIESBRADY INDUSTRIES OF CALIFORNIA LLC 39.69 APR'25-MAR'26 AUDIO VISUAL EXTENDED SERVICEWESTERN A/V 3,635.00 13 Description (Item)Vendor Name Amount
SPRING2025-SPR064/024/026/020/022 GYMNASTICS-34TUMBLE-N-KIDS, INC 2,299.20 SPRING2025-SPR031/032 SOCCER-12 PARTICIPANTSSKYHAWKS SPORTS ACADEMY, LLC 648.00 MAY'25 AVR INTERIOR PLANT MAINTENANCEFOSTERS' GARDENS INC 110.00 EM 5/02 MCFADDEN-DALE-PLAQUE HARDWARE AVRUS BANK PURCHASING CARD PROGRAM 19.26 EM 5/01 HOME DEPOT -PLAQUE SEALANT AVRUS BANK PURCHASING CARD PROGRAM 18.63 EM 4/24 SEPULVEDA BLDG -MATERIALS AVRUS BANK PURCHASING CARD PROGRAM 56.51 EM RCS 4/29 LEGOLAND-8/14 WK 10 EXCUSRION BATCH 1US BANK PURCHASING CARD PROGRAM 792.00 EM RCS 4/30 LEGOLAND-8/14 WK 10 EXCUSRION BATCH 2US BANK PURCHASING CARD PROGRAM 792.00 EM RCS 4/30 LEGOLAND-8/14 WK 10 EXCUSRION BATCH 3US BANK PURCHASING CARD PROGRAM 792.00 EM RCS 5/20 KNOTTS BERRY FARM-7/31WEEK 8 EXCURSIONUS BANK PURCHASING CARD PROGRAM 2,840.00 JB 4/30 LEGOLAND-8/14 WK 10 CDC EXCURSION- BATCH 6US BANK PURCHASING CARD PROGRAM 792.00 JB 4/30 LEGOLAND-8/14 WK 10 CDC EXCURSION- BATCH 4US BANK PURCHASING CARD PROGRAM 792.00 JB 5/14 SWIMOUTLET-MEMBERSHIP FOR CDC RASHGUARDUS BANK PURCHASING CARD PROGRAM 5.37 ACCT#105234/104936/104935/104986 RANCH WATER SVCMOULTON NIGUEL WATER DIST 1,459.90 ACCT#104515/104519 FARM WATER SVCMOULTON NIGUEL WATER DIST 319.66 RECREATION SERVICES TOTAL: 16,335.77
GF-AV RECREATION SERVICES TOTAL: 18,143.77
203 - GAS TAX

STREET MAINTENANCE
MAY'25 USA DATABASE MAINT + 23 TICKETSUNDERGROUND SERVICE ALERT OF SOUTHERN CA 52.55 4/09/25-5/09/25 MTR#5675 IRRIG CALLE CORTEZ WATEREL TORO WATER DISTRICT 108.75 MAY'25 STREET SWEEPING SERVICESSCA OF CA LLC 8,972.06
MAY'25 ACCT#6377 LS2 ST LIGHTS ELECTRICITYSO CAL EDISON 1,281.54 MAY'25 ACCT#7241 LS1 ST LIGHTS ELECTRICITYSO CAL EDISON 18,291.78 ACCT#64613/64615/65346 MEDIANS WATER SVCMOULTON NIGUEL WATER DIST 278.04 STREET MAINTENANCE TOTAL: 28,984.72
GAS TAX TOTAL: 28,984.72
225 - INTEGRATED WASTE MGMT FD

GEN-TECHNOLOGY GRANTS
APR'25 CAA CONTRACT SERVICES - SB1383CHARLES ABBOTT ASSOC INC 2,662.50 GEN-TECHNOLOGY GRANTS TOTAL: 2,662.50
INTEGRATED WASTE MGMT FD TOTAL: 2,662.50
241 - TECHNOLOGY FUND

GEN-TECHNOLOGY GRANTS
APR'25-MAR'26 AUDIO VISUAL EXTENDED SERVICEWESTERN A/V 9,600.00 GEN-TECHNOLOGY GRANTS TOTAL: 9,600.00
TECHNOLOGY FUND TOTAL: 9,600.00
261 - CITY FAC.-AQUATIC CENTER

GEN-AQUATIC CENTER
MAY'25 POOL MAINTENANCEAQUATIC TECHNOLOGIES, INC 2,693.00 MAY'25 AQC JANITORIAL SERVICESTEAM ONE MANAGEMENT SERVICES 2,100.00 APR'25 REIMB AQC 4/02 JACKRABBIT-SERVICE PLATFORMPREMIER AQUATIC SERVICES 315.00 APR'25 REIMB AQC 4/16 LESLIE'S-POOL CHEMICALSPREMIER AQUATIC SERVICES 53.84 APR'25 REIMB AQC 4/28 FACEBOOK/INSTA-AD MARKETINGPREMIER AQUATIC SERVICES 289.86 APR'25 REIMB AQC 4/28 FACEBOOK/ INSTA-AD MARKETINGPREMIER AQUATIC SERVICES 288.79 APR'25 REIMB AQC 4/01-4/30 INDEED - ADPREMIER AQUATIC SERVICES 603.04 APR'25 REIMB AQC 4/29 FACEBOOK/INSTA-AD MARKETINGPREMIER AQUATIC SERVICES 12.86 APR'25 REIMB AQC 4/29 FACEBOOK/INSTA-AD MARKETINGPREMIER AQUATIC SERVICES 11.33 APR'25 REIMB AQC 4/06 SOCA-SWIM LEAGUE REGISTRATIOPREMIER AQUATIC SERVICES 200.00 DEC'24 REIMB AQC 12/04 CHEVRON-PROPANE EXCHANGEPREMIER AQUATIC SERVICES 56.01 DEC'24 REIMB AQC 12/17 CHEVRON-PROPANE EXCHANGEPREMIER AQUATIC SERVICES 28.00 DEC'24 REIMB AQC 12/02 JACKRABBIT-SERVICE PLATFORMPREMIER AQUATIC SERVICES 315.00 DEC'24 REIMB AQC 12/21 WALMART-CLEANING SUPPLIESPREMIER AQUATIC SERVICES 18.37 DEC'24 REIMB AQC 12/17 AMAZON-CLEANING SUPPLIESPREMIER AQUATIC SERVICES 7.08 DEC'24 REIMB AQC 12/17 AMAZON-CLEANING SUPPLIESPREMIER AQUATIC SERVICES 23.53 DEC'24 REIMB AQC 12/17 LESLIE'S-POOL CHEMICALSPREMIER AQUATIC SERVICES 53.84 DEC'24 REIMB AQC 12/17 AMAZON-ORGANIZING SUPPLIESPREMIER AQUATIC SERVICES 18.16 DEC'24 REIMB AQC 12/17 WALMART-ORGANIZING SUPPLIESPREMIER AQUATIC SERVICES 46.11 14 Description (Item)Vendor Name Amount
DEC'24 REIMB AQC 12/17 RALPHS - HOT COCOAPREMIER AQUATIC SERVICES 11.96 DEC'24 REIMB AQC 12/29 META - AD MARKETINGPREMIER AQUATIC SERVICES 39.79 DEC'24 REIMB AQC12/04 GIVEBACKS-AD MARKETING LOCALPREMIER AQUATIC SERVICES 110.00 DEC'24 REIMB AQC 12/01-12/31 INDEED - ADPREMIER AQUATIC SERVICES 76.35 FEB'25 REIMB AQC 2/18 COSTCO - CONCESSIONSPREMIER AQUATIC SERVICES 37.62 FEB'25 REIMB AQC 2/04 JACKRABBIT -SERVICE PLATFORMPREMIER AQUATIC SERVICES 315.00 FEB'25 REIMB AQC 2/08 LESLIE'S-POOL CHEMICALSPREMIER AQUATIC SERVICES 71.07 FEB'25 REIMB AQC 2/25 AMAZON - POOL VACUUMPREMIER AQUATIC SERVICES 91.58 FEB'25 REIMB AQC 2/25 AMAZON - OFFICE SUPPLIESPREMIER AQUATIC SERVICES 21.54 FEB'25 REIMB AQC 2/12 WALMART - COCOAPREMIER AQUATIC SERVICES 17.44 FEB'25 REIMB AQC 2/12 AMAZON- RADIO WARRANTYPREMIER AQUATIC SERVICES 18.99 FEB'25 REIMB AQC FIVERR - LOGO RECOLORING FOR CAPSPREMIER AQUATIC SERVICES 24.10 FEB'25 REIMB AQC 2/12 AMAZON - LESSON SUPPLIESPREMIER AQUATIC SERVICES 35.54 FEB'25 REIMB AQC 2/12 AMAZON-LIFEGUARD RADIOS/SUPLPREMIER AQUATIC SERVICES 189.50 FEB'25 REIMB AQC 2/04 AMAZON-SWIM LESSON SUPPLIESPREMIER AQUATIC SERVICES 112.36 FEB'25 REIMB AQC 2/05 FINIS-SWIM LESSON SUPPLIESPREMIER AQUATIC SERVICES 82.38 FEB'25 REIMB AQC 2/01-2/28 INDEED - ADPREMIER AQUATIC SERVICES 531.53 FEB'25 REIMB AQC 2/28 FACEBK/INSTA-AD MARKETINGPREMIER AQUATIC SERVICES 500.70 FEB'25 REIMB AQC 2/08 WALMART - EVENT SUPPLIESPREMIER AQUATIC SERVICES 16.81 JAN'25 REIMB AQC 1/22 CHEVRON-PROPANE EXCHANGEPREMIER AQUATIC SERVICES 28.00 JAN'25 REIMB AQC 1/02 JACKRABBIT-SERVICE PLATFORMPREMIER AQUATIC SERVICES 315.00 JAN'25 REIMB AQC 1/23 AMAZON-ORGANIZING SUPPLIESPREMIER AQUATIC SERVICES 31.22 JAN'25 REIMB AQC 1/24 ST PETER'S THRIFT-FLOATATIONPREMIER AQUATIC SERVICES 6.52 JAN'25 REIMB AQC 1/13 RALPHS- HOT COCOAPREMIER AQUATIC SERVICES 7.99 JAN'25 REIMB AQC 1/21 US SWIM SCHOOL ASSOC CONF KCPREMIER AQUATIC SERVICES 415.00 JAN'25 REIMB AQC 1/29 FACEBOOK & INSTA -MARKETINGPREMIER AQUATIC SERVICES 5.43 JAN'25 REIMB AQC 1/29 FACEBOOK & INSTA -MARKETINGPREMIER AQUATIC SERVICES 23.50 JAN'25 REIMB AQC 1/01-1/31 INDEED - ADPREMIER AQUATIC SERVICES 40.14 KB 5/19 JOHNSTONE SUPPLY-AQC TRANSFORMER FILL LINEUS BANK PURCHASING CARD PROGRAM 249.44 KB 5/17 HOME DEPOT - AQC LAP POOL FILL LINE REPAIRUS BANK PURCHASING CARD PROGRAM 67.51 MAR '25 REIMB AQC 3/03 JACKRABBIT-SERVICE PLATFORMPREMIER AQUATIC SERVICES 315.00 MAR '25 REIMB AQC 3/15 LESLIE'S-POOL CHEMICALSPREMIER AQUATIC SERVICES 43.08 MAR '25 REIMB AQC 3/12 RALPHS - COCOAPREMIER AQUATIC SERVICES 10.75 MAR '25 REIMB AQC 3/18 AMAZON - LIGHTERPREMIER AQUATIC SERVICES 8.39 MAR '25 REIMB AQC 3/8 AMAZON - PRINTER TONERPREMIER AQUATIC SERVICES 75.41 MAR '25 REIMB AQC 3/15 AMAZON - SPA SIGNPREMIER AQUATIC SERVICES 35.07 MAR '25 REIMB AQC 3/26 FINIS - AVFF SUITSPREMIER AQUATIC SERVICES 2,427.67 MAR '25 REIMB AQC 3/18 AMAZON - LIFEGUARD SUPPLIESPREMIER AQUATIC SERVICES 19.20 MAR '25 REIMB AQC 3/28 SPLASH ABOUT - SWIM DIAPERSPREMIER AQUATIC SERVICES 450.30 MAR '25 REIMB AQC 3/12 AVCA - EVENT BOOTHPREMIER AQUATIC SERVICES 100.00 MAR '25 REIMB AQC 3/29 FACEBOOK/INSTA-AD MARKETINGPREMIER AQUATIC SERVICES 19.39 MAR '25 REIMB AQC 3/01-3/31 INDEED - ADPREMIER AQUATIC SERVICES 542.86 MAR '25 REIMB AQC 3/29 FACEBOOK/INSTA-AD MARKETINGPREMIER AQUATIC SERVICES 557.42 ACCT#64095/64096 AQC WATER SVCMOULTON NIGUEL WATER DIST 448.95 NOV '24 REIMB AQC 11/13 CHEVRON-PROPANE EXCHANGEPREMIER AQUATIC SERVICES 56.01 NOV '24 REIMB AQC 11/09 CHEVRON-PROPANE EXCHANGEPREMIER AQUATIC SERVICES 28.00 NOV '24 REIMB AQC 11/01 JACKRABBIT-SERVICE PLATFORPREMIER AQUATIC SERVICES 315.00 NOV '24 REIMB AQC 11/01 POOLWEB-POOL MAINTPREMIER AQUATIC SERVICES 26.55 NOV '24 REIMB AQC 11/01 LESLIE'S-POOL CHEMICALSPREMIER AQUATIC SERVICES 61.39 NOV '24 REIMB AQC11/05 AMAZON-SWIM LESSON SUPPLIESPREMIER AQUATIC SERVICES 10.33 NOV '24 REIMB AQC 11/27 COSTCO - EVENT SUPPLIESPREMIER AQUATIC SERVICES 44.30 NOV '24 REIMB AQC 11/02 COSTCO - EVENT SUPPLIESPREMIER AQUATIC SERVICES 49.20 NOV '24 REIMB AQC 11/27 WALMART-EVENT SUPPLIESPREMIER AQUATIC SERVICES 14.15 NOV '24 REIMB AQC 11/27 AMAZON-EVENT SUPPLIESPREMIER AQUATIC SERVICES 57.77 NOV '24 REIMB AQC 11/19 AMAZON-FACILITY SUPPLIESPREMIER AQUATIC SERVICES 18.08 NOV '24 REIMB AQC 11/29 FACEBK/INSTA-AD MARKETINGPREMIER AQUATIC SERVICES 509.68 NOV '24 REIMB AQC GOOGLE-AD MARKETINGPREMIER AQUATIC SERVICES 447.00 NOV '24 REIMB AQC INDEED-ADPREMIER AQUATIC SERVICES 313.70 NOV '24 REIMB AQC 11/29 FACEBK/INSTA-AD MARKETINGPREMIER AQUATIC SERVICES 16.54 GEN-AQUATIC CENTER TOTAL: 17,649.02
CITY FAC.-AQUATIC CENTER TOTAL: 17,649.02
15 Description (Item)Vendor Name Amount
311 - STREET IMPROVEMENTS

STREETS & HIGHWAYS
APR'25 ALISO CREEK REHAB INSPECTIONCIVIL SOURCE, AN NV5 COMPANY 4,389.92 STREETS & HIGHWAYS TOTAL: 4,389.92
STREET IMPROVEMENTS TOTAL: 4,389.92
GRAND TOTAL: 189,143.47
Fund Summary
Payment AmountFund Expense Amount
101 - GENERAL FUND 101,294.92101,294.92
102 - GEN. FD-CITY HALL 6,418.626,418.62
103 - GF-AV RECREATION SERVICES 18,143.7718,143.77
203 - GAS TAX 28,984.7228,984.72
225 - INTEGRATED WASTE MGMT FD 2,662.502,662.50
241 - TECHNOLOGY FUND 9,600.009,600.00
261 - CITY FAC.-AQUATIC CENTER 17,649.0217,649.02
311 - STREET IMPROVEMENTS 4,389.924,389.92
189,143.47Grand Total: 189,143.47
16 Accounts Payable Payable Dates: 05/23/2025 - 06/05/2025 6/4/2025 4:46:18 PM Page 7 of 8
Report Summary
Fund Summary
Payment AmountFund
101 - GENERAL FUND 101,294.92
102 - GEN. FD-CITY HALL 6,418.62
103 - GF-AV RECREATION SERVICES 18,143.77
203 - GAS TAX 28,984.72
225 - INTEGRATED WASTE MGMT FD 2,662.50
241 - TECHNOLOGY FUND 9,600.00
261 - CITY FAC.-AQUATIC CENTER 17,649.02
311 - STREET IMPROVEMENTS 4,389.92
189,143.47Grand Total:

Account Summary
Payment AmountAccount Number Account Name
101-2602-000 PLANNING DEPOSIT 43.00
101-2603-000 ENGINEERING DEPOSIT 3,535.00
101-2606-000 C & D DEPOSIT 21,200.00
101-4-1101-4520-000 MTGS/CONF./TRNG & D… 567.87
101-4-1501-4520-000 MTGS/CONF./TRNG & D… 2,810.35
101-4-1503-4309-000 OTHER CONTRACTUAL S… 102.90
101-4-1503-4520-000 MTGS/CONF./TRNG & D… 115.00
101-4-2101-4731-000 GENERAL PLAN 462.40
101-4-2501-4512-000 POSTAGE 10.10
101-4-2501-4521-000 MEMBERSHIP & DUES 295.00
101-4-3501-4431-000 BUILDING & GROUND M… 1,299.79
101-4-3501-4513-000 PRINTING 64.86
101-4-3501-4517-000 VEHICLE MAINTENANCE 822.19
101-4-3501-4612-000 OPERATING SUPPLIES 20.00
101-4-4101-4501-000 ADVERTISING & PROMO… 270.00
101-4-4101-4520-000 MTGS/CONF./TRNG & D… 697.32
101-4-4101-4527-000 REC-CITY SPECIAL EVENTS 4,252.94
101-4-4102-4411-000 UTILITIES 1,296.26
101-4-4102-4431-000 BUILDING & GROUND M… 6,298.93
101-4-4103-4411-000 UTILITIES 268.10
101-4-4103-4431-000 BUILDING & GROUND M… 1,056.11
101-4-4401-4309-000 OTHER CONTRACTUAL S… 8,956.29
101-4-4401-4520-000 MTGS/CONF./TRNG & D… 970.20
101-4-4401-4521-000 MEMBERSHIP & DUES 175.00
101-4-4402-4601-000 SUPPLIES 27.16
101-4-4403-4761-000 C.S-CODE ENFORCEMENT 631.20
101-4-4501-4520-000 MTGS/CONF/TRNG & D… 1,009.00
101-4-4501-4620-000 MINOR EQUIPMENT 131.13
101-4-4501-4701-000 NPDES 10,112.50
101-4-4501-4702-000 AB939-SOLID WASTE 6,527.50
101-4-4501-4741-000 C.S-CITY ENGINEERING 4,386.50
101-4-4503-4771-000 C.S-STREET MAINTENAN… 5,338.28
101-4-5102-4517-000 VEHICLE MAINTENANCE 711.96
101-4-5102-4721-000 C.S-CROSSING GUARDS 15,419.20
101-4-5401-4471-000 RENT 1,321.00
101-4-5401-4612-000 OPERATING SUPPLIES 89.88
102-4-3501-4411-000 UTILITIES 631.71
102-4-3501-4431-000 BUILDING & GROUND M… 5,619.44
102-4-3501-4561-000 TAXES/FEES/PERMITS 167.47
103-34130 FACILITY RENTAL 1,909.00
103-34150 OTHER INCOME 5.00
103-34161 CONTRACT CLASSES 144.00
103-34169 REFUNDS -250.00
103-4-4105-4305-000 TECHNOLOGY SERVICES 3,635.00
103-4-4105-4309-000 OTHER CONTRACTUAL S… 2,947.20
17 Accounts Payable Payable Dates: 05/23/2025 - 06/05/2025 6/4/2025 4:46:18 PM Page 8 of 8
Account Summary
Payment AmountAccount Number Account Name
103-4-4105-4411-000 UTILITIES 1,459.90
103-4-4105-4431-000 BUILDING & GROUND M… 1,168.64
103-4-4105-4451-000 FARM OPERATING EXPE… 319.66
103-4-4105-4570-000 CITY CAMP EXPENSE 6,805.37
203-4-4503-4411-000 UTILITIES 19,960.11
203-4-4503-4771-000 C.S-STREET MAINTENAN… 52.55
203-4-4503-4772-000 C.S-STREET SWEEPING 8,972.06
225-4-6141-4309-000 OTHER CONTRACTUAL S… 2,662.50
241-4-6141-4481-000 IT/COMPUTER EQUIPM… 9,600.00
261-4-6161-7301-000 COST OF F&B 37.62
261-4-6161-7401-000 EQUIPMENT MAINTENA… 2,889.02
261-4-6161-7402-000 COMPUTER EXPENSE 1,890.00
261-4-6161-7411-000 UTILITIES 448.95
261-4-6161-7421-000 BUILDING & GROUND M… 2,465.93
261-4-6161-7425-000 POOL MAINTENANCE 401.35
261-4-6161-7431-000 SUPPLIES 190.69
261-4-6161-7432-000 MINOR EQUIPMENT 35.07
261-4-6161-7433-000 OPERATING SUPPLIES 3,168.37
261-4-6161-7435-000 MERCHANDISE 450.30
261-4-6161-7440-000 MEETINGS/CONFERENC… 415.00
261-4-6161-7441-000 MARKETING 5,056.72
261-4-6161-7445-000 FEES & PERMITS 200.00
311-4-8301-5601-000 CONSTRUCTION MANA… 4,389.92
Grand Total: 189,143.47
Project Account Summary
Payment AmountProject Account Key
**None** 163,939.67
1002SPRING 2,947.20
1345601 4,389.92
9244520 65.00
9284520 123.18
9294520 211.09
9314520 168.60
9934527 4,252.94
9974570 6,805.37
ENG 2252 105.00
ENG 2254 452.50
ENG 2256 510.00
ENG 5002 105.00
ENG 5003 105.00
ENG 5004 840.00
ENG 5005 157.50
ENG 5049 1,155.00
ENG 5076 105.00
SB13834309 2,662.50
SDP-2022-0004 43.00
Grand Total: 189,143.47
18 City of Aliso Viejo

AGENDA ITEM

DATE: June 18, 2025

TO: Mayor and City Council

FROM: Ann Eifert, Director of Financial Services/City Treasurer

SUBJECT: INVESTMENT POLICY FOR FISCAL YEAR 2025-26

Recommended Action:

Adopt a Resolution approving the Investment Policy for Fiscal Year 2025-26 and rescinding Resolution No. 2024-23 in its entirety.

Fiscal Impact:

The adoption of the annual 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 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 revi ew and adoption is the FY 2025-26 Investment Policy, its accompanying resolution, and the A dministrative Policy containing guidelines for investments and internal control. Staff has consulted with the City’s investment advisor and is recommending the changes outlined below.

19

1) Monthly Treasurer’s Report – The current Policy requires that a monthly treasurer’s report be agendized for City Council review within 45 days following the last day of the month . Staff recommends a llowing up to 60 days following the last day of the month for City Council approval to accommodate scheduling conflicts, such as the cancellation of City Council meetings and holidays.

2) Qualified Broker/Dealer List (Appendix B) – Staff recommends removing Appendix B, Qualified Broker/Dealer List. The list of qualified broker/dealers is no longer applicable since the City uses a SEC registered external investment advisor. In the event the City discontinues the use of an investment advisor, the City will reestablish a list in accordance with the Policy.

3) Maturity Limits – Staff recommends updating the maturity limits required in the Policy, which would provide additional flexibility and potential for higher investments earnings, while still meeting the goals of safety and liquidity, as well as monthly cash flow needs. The recommended updates include the following:

a) Accessibility on demand – Staff recommends decreasing the minimum amount required to be “accessible on demand” from 15% to 10%. The current average City portfolio balance for the past three years is approximately $44 .5 million.

The current Policy requires that a minimum of $6.7 million be available at any time, limiting the City’s investments to LAIF and money market accounts when interest rates could potentially be higher for the one-to-12-month maturities. If approved, the Policy would require $4.5 million be available on demand.

b) Within 365 Days – Staff recommends d ecreasing the minimum amount required of the portfolio to mature within 365 days from 40% to 35%. With an average portfolio balance of approximately $44.5 million, the current Policy requires that a minimum of $17.8 million mature within one year. If approved, the Policy would lower the amount to $15.5 million.

There are no other significant changes to the FY 2025-26 Investment Policy.

Attachments:

1. Resolution

2. FY 2025-26 Investment Policy – Clean

3. FY 2025-26 Investment Policy – Redline

4. Resolution No. 2024-23
20

RESOLUTION NO. 2025-___

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ALISO
VIEJO, CALIFORNIA, REPEALING RESOLUTION NO. 2024-23, AND ADOPTING AN INVESTMENT POLICY FOR FISCAL YEAR 2025-26

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 regu lar 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 2025-26 attached 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 2025-26 is adopted as the City’s Investment Policy.

Section 2. Resolution No. 2024-23 is hereby repealed

Section 3. This Resolution shall be effective July 1, 2025.

Section 4. The City Clerk shall certify as to the adoption of this Resolution.

PASSED, APPROVED AND ADOPTED this 18th day of June, 2025.

__________________________
Tiffany Ackley
Mayor

21

APPROVED AS TO FORM: ATTEST:

__________________________ ___________________________
Scott C. Smith, City Attorney Janet Martinez, City Clerk 22

STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.

CITY OF ALISO VIEJO )

I, JANET MARTINEZ, City Clerk of the City of Aliso Viejo, California, DO HEREBY CERTIFY that the foregoing is the original of Resolution No. 202 5-__ duly passed and adopted by the City Council of the City of Aliso Viejo at their regular meeting held on the 18th day of June, 2025, by the following roll call vote, to wit:

AYES:

NOES:

ABSENT:

___________________________

JANET MARTINEZ

CITY CLERK

(SEAL)

23 City of Aliso Viejo 2025-26 Investment Policy Page i EXHIBIT “A”

CITY OF ALISO VIEJO

STATEMENT OF INVESTMENT POLICY
FOR FISCAL YEAR 2025-26
AS ADOPTED June 18, 2025

CITY COUNCIL
Mayor Tiffany Ackley
Mayor Pro Tem Max Duncan
Council Member Richard Hurt
Council Member Mike Munzing
Council Member Tim Zandbergen
24 City of Aliso Viejo 2025-26 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
25

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.

26 City of Aliso Viejo 2025-26 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 27 City of Aliso Viejo 2025-26 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. 28 City of Aliso Viejo 2025-26 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 29 City of Aliso Viejo 2025-26 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. 30 City of Aliso Viejo 2025-26 Investment Policy Page 6 Reporting
The Treasurer shall submit a “Monthly Treasurer’s Report” to the City Manager and City Council within 60 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:
31 City of Aliso Viejo 2025-26 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
32 City of Aliso Viejo 2025-26 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.

33 City of Aliso Viejo 2025-26 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. 34 City of Aliso Viejo 2025-26 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, 10 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, 35 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 If the City does not utilize a SEC registered external investment advisor, the Treasurer will maintain a list of qualified financial institutions and broker/dealers authorized to transact business with the City and incorporate herein as 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:
35 City of Aliso Viejo 2025-26 Investment Policy Page 11 The City may purchase investments offered from Banks, Savings and Loans, and Credit 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 36 City of Aliso Viejo 2025-26 Investment Policy Page 12 financial institutions, geographic areas, industry types, and maturities.

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.
37 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.
38 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. 39 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.
40 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. 41 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.
42 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. 43 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. 44 Appendix B

QUALIFIED BROKER/DEALERS
The City uses a SEC registered external investment advisor and does not currently have a list of internal Qualified Broker/Dealers.
45 Appendix C

ADMINISTRATIVE POLICY

Investment Guidelines, Strategy, and Internal Control

46 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.
47 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. 48 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. 49 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. 50 City of Aliso Viejo 2024-252025-26 Investment Policy Page i EXHIBIT “A”

CITY OF ALISO VIEJO

STATEMENT OF INVESTMENT POLICY
FOR FISCAL YEAR 2024-252025-26
AS ADOPTED July 17June 18,
20242025

CITY COUNCIL

Mayor Mike MunzingTiffany Ackley
Mayor Pro Tem Tiffany AckleyMax Duncan
Council Member Richard Hurt
Council Member Ross ChunMike Munzing
Council Member Max DuncanTim Zandbergen
Council Member Richard Hurt
51 City of Aliso Viejo 2024-252025-26 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
52

City of Aliso Viejo 2024-252025-26 Investment Policy
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 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.

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 principa l 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 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.

53 City of Aliso Viejo 2024-252025-26 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.

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 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.

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 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 54 City of Aliso Viejo 2024-252025-26 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 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.

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 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.

Any firm proposing to provide any type of investment service to the City shall acknowledge their familiarity with the provisions of the Po litical 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. 55 City of Aliso Viejo 2024-252025-26 Investment Policy Page 4 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.

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 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.

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 r ecord the Treasurer’s investment records or confirmations to the City’s general ledg er. In addition, inde pendent staff will 56 City of Aliso Viejo 2024-252025-26 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 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.

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 th e portfolio was determin ed 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. 57 City of Aliso Viejo 2024-252025-26 Investment Policy Page 6 Reporting
The Treasurer shall submit a “Monthly Treasur er’s Report” to the City Manager and City Council within 45 60 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 invest ment 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:
58 City of Aliso Viejo 2024-252025-26 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

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
59 City of Aliso Viejo 2024-252025-26 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 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.

60 City of Aliso Viejo 2024-252025-26 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. 61 City of Aliso Viejo 2024-252025-26 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 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 10 percent of the portfolio shall rema in liquid, accessible on demand by the City without restriction or penalty.

The investment portfolio shall be stru ctured for liquidity purposes; therefore, 40 35 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 If the City does not utilize a SEC registered external investment advisor, Tt he Treasurer will maintain a list of qualified fina ncial institutions and broker/dealers authorized to transact business with the City, and incorporate herein as stated inas 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:
62 City of Aliso Viejo 2024-252025-26 Investment Policy Page 11 The City may purchase investments offered fr om Banks, Savings and Loans, and Credit 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 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.

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 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 63 City of Aliso Viejo 2024-252025-26 Investment Policy Page 12 financial institutions, geographic areas, industry types, and maturities.

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.

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.
64 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 (inc reasing) 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 matu rity, 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 pledge s 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 ar e 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 a
n 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.
65 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 safekeep ing for the individual securities in a customer's investment portfolio under a writte n 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 origin al 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 servi ces 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. 66 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 participat ion interests and reselling these securities in the form of guaranteed mortgage securities. Al though 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 st ockholder-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 Re serve 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 issue d 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. Ginni e 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.
67 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 invest ment. There is no minimum investment period, and the minimum transaction is $5,000, in mult iples of $1,000 above that, with a maximum balance of $75,000,000 for any agency. It o ffers 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 de termined by the amounts deposited and the length of time they are depos ited. Interest is paid quarter ly. 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 distri cts 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 repurcha se 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 secu rities 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 corpora te 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 i ssuance 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. 68 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 governme nt 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 an d 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 yiel d 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.
69 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 s ecurities 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 Congre ss 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 secu rity 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. Tr easury 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. 70 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. 71 Appendix B

QUALIFIED BROKER/DEALERS

The City uses a SEC registered external investment advisor and does not currently have a list of internal Qualified Broker/Dealers. 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
72 Appendix C

ADMINISTRATIVE POLICY

Investment Guidelines, Strategy, and Internal Control

73 RESOLUTION NO. 2024- 23

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- 25 attached 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.

74 PASSED, APPROVED AND ADOPTED this 17th day of July, 2024.

Mike Munzing
Mayor
APPROVED AS TO FORM: ATT ST:

Scot . ith, City Attorney Lair n Torres, Deputy City Clerk

75 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- 23 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: Mayor Munzing, Mayor Pro Tem Ackley, Councilmembers Chun, Duncan and Hurt
NOES: None
ABSENT: None

LAUR' OR

DEPU Y CITY CLERK
SEAL)

76 EXHIBIT" A"

CITY OF ALISO VIEJO

STATEMENT OF INVESTMENT POLICY
FOR FISCAL YEAR 2024- 25
As ADOPTEDJuly 17, 2024

CITY COUNCIL
Mayor Mike Munzing
Mayor Pro Tern Tiffany Ackley
Council Member Ross Chun
Council Member Max Duncan
Council Member Richard Hurt
City of Aliso Vigo 2024- 25 Investment Policy fare r
77 TABLE OF CONTENTS
Statement of Investment Polic 1
Objectives 1
Scope of Funds 2
Prudent Investor Standard 2
Investment Philosophy 2
Delegation of Authorit 3
Public Trust 3
Ethics and Conflicts of Interesu 3
Internal Investment Controls 4
Investment Policy Adoption 5
Indemnification of Investment Officials 5
Investment Portfolio Com• liance 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 Continuin• Education 12
APPENDIX A: Glossary of Terms
APPENDIX B: Qualified Broker/ Dealers
APPENDIX C: Administrative Policy: Investment Guidelines, Strategy, and Internal Control
Coy ofAliso Viejo 2024- 25 Investment Po/ icy Page ii
78 Statement of Investment Polic
This Statementof InvestmentPolicy(" Policy"), assetforth by the City of Aliso Viejo(" City"), provides the guidelinesfor prudent investment of the City's idle or reservecashand outlines the policies essentialto ensuring the safetyand financial strength of the City's investment portfolio.

This Policy is basedon the principles of prudent money managementand conforms to all applicableFederaland StateLaws governing the investment of public funds. In instancesin which the Policy is more restrictivethan Federalor StateLaw, the Policywill supersede.

Ob' ectives
It is the policy of the City to invest public funds in a manner which will provide for the preservationof capitalwhilemeetingthedailycashflow requirementsof theCityandattaining a market average rate of return within an acceptable and defined level of risk.

The Policyhasthreeprimary objectives,in order of priority:

1. Preservationof Capital (Safety) — the protectionof principalis the foremost considerationwhen undertakinginvestmentdecisionsthat affectpublic 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 securityissuer.

Credit Risk canbe mitigatedby:

Limiting investmentsto the safesttypesof securities.

Pre-qualifying accountants, auditors, financial institutions, broker/ dealers, financialadvisors,andother outsideconsultantswith which theCity doesbusiness.

Diversifying the investmentportfolio sothat potential lossesareminimized.

Interest Rate Risk
Interest rate risk is the risk that the market value of securities will fall due to a rise in generalmarketinterestrates. It is the policy of the City to hold individual securitiesto maturity in an effort to meetliquidity demands. Interest raterisk can be mitigatedby:

Holding individual securitiesto maturity- Structuring the investmentportfolio so that securitiesmature to meet cash flow requirements for ongoing operations, therebyavoiding the needto sell securitieson theopen marketprior to maturity.

Employing a laddering strategy whereby staggering maturities of individual securitiesso that bonds come due in increments, assuringan overall liquidity pattern.

Limiting maturities of individual securitiesand the averagematurity of the overall portfolio.

City ojAbiso Viejo 2024- 25 Investment Policy
79 2. Liquidity — the investment portfolio shall remain sufficiently liquid to meet all dailycashflow andoperatingrequirementsthat maybe reasonablyexpectedor anticipated.

3. Return or Yield— attaina rateof return consistentwith theprimary objectivesof safetyandliquidity, throughout budgetaryand economiccycles.

Scope of Funds
The investmentpolicy appliesto all financialassetsandinvestmentactivitiesof the City, except for proceedsof debt issuance. Debt proceedsshall be investedin accordancewith the PermittedInvestments" provisions for eachspecificbond indenture.

The Policy appliesto the following funds and is accountedfor 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. AgencyFunds
Prudent Investor Standard
The standardto be usedby investment officials shallbe that of a "prudent person" and shall beappliedin thecontextof managingallaspectsof theCity'sinvestmentportfolio The Prudent Investor Standard:

Governing bodies of local agenciesor personsauthorizedto make investment decisionson behalf of thoselocal agenciesinvestingpublic funds pursuantto this chapteraretrusteesand thereforefiduciariessubjectto the prudentinvestorstandard. Wheninvesting, reinvesting, purchasing,acquiring,exchanging, selling,and managingpublic funds, a trusteeshallact with care, skill, prudence, and diligence under the circumstancesthen prevailing, that a prudent personactingin alikecapacityandfamiliaritywith thosematterswouldusein theconductof fundsof alikecharacterandwithlikeaims,to safeguardtheprincipalandmaintaintheliquidity needsof the agency. Within the limitations of sections16429.1 and 53600through 53684of theCaliforniaGovernmentCodeandconsideringindividualinvestmentsasapartof anoverall strategy,atrusteeisauthorizedto acquireinvestmentsasauthorizedby law.

Investment Philosoph
It is the investment philosophy of the City to makeinvestmentdecisionsbasedon an overall passive management style that embodies a prudent investor standard and such that investmentsarepurchasedto generallymatchexpectedfuturecashoutflows andwith theintent to hold until maturity.

Accordingly, the City's conservativephilosophyprohibitsactivetradingandspeculation; i.e., the purchaseof securitieswith the intent to profit from favorablemarket changesin market prices or market conditions. Leveragingor borrowing money for the purposeof investing is specificallyprohibited. However, the City mayelectto sell a securityprior to its maturity and

City ofAliso Viejo 2024- 25 Investment Polity
80 recordacapitalgainor lossin orderto improvethequality,liquidity, or yieldof theportfolio in responseto market conditions or City needs.

Delegation of Authority
The City's ResolutionNo. 2003-018 appoints the Director of Financial Servicesto alsoserve asCity Treasurer. The Treasurer,or his or her designee,hasthe authority to managethe City's investment portfolio in accordancewith California Government Code Sections53600 and 53630etseq. andall relatedStateand Federallaws.

The Treasurerwill provideprior written notificationto the City ManagerandCity Council regardingthe designationof responsibilities.

The Treasurer shall establishwritten proceduresfor the operation and managementof the City's investmentportfolio consistentwith this investmentpolicy. The proceduresshould include referenceto safekeeping, repurchaseagreements, wire transfer agreements, banking service contracts, collateral or depository agreements, competitive bid process, and due diligence.Suchproceduresshallincludeexplicitdelegationof authorityto personsresponsible for investment transactions. No person may engagein an investment transaction, except as providedunderthe termsof this policy andthe investmentproceduresestablishedby the Treasurerandapprovedby the City Manager.

The City mayalsoengageSecuritiesandExchangeCommissionregisteredexternalinvestment advisorto managethe City'sinvestment program.

Public Trust
All participantsin the investment processshallact ascustodiansof public funds. Investment officials shallrecognizethat theinvestmentportfolio is subjectto public reviewand evaluation.

The overall program shallbe designedand managedwith a degreeof professionalismthat is worthy of public trust. In a diversified portfolio, it must be recognized that occasional measuredlossesareinevitableand must be consideredin the context of theoverall portfolio' s investmentreturn, provided that adequatediversificationhasbeenimplemented.

Ethics and Conflicts of Interest
Elected officials and employeesof the City involved in the investment processshall refrain from personalbusinessactivity that could conflict with proper execution of the investment program, or which could impair their ability to make impartial decisionsunder the Political Reform Act and Government Code Section 1090etseq. Elected officials and employeesshall disclose to the City Manager any material interests in financial institutions that conduct businesswith the City, and they shall further discloseany personalinvestment position or financial assetthat could be related to the performance of the City's investment program.

Elected officials and employeesshall subordinate their personalinvestment transactionsto thoseof the City particularlywith regardto the time of purchasesand sales.

Any firm proposing to provide any type of investment serviceto the City shall acknowledge their familiarity with the provisions of the Political Reform Act, Government Code Section 81000etseq. and CA Codeof Regulations18110etseq. andthe provisions limiting contractual conflicts of interest under Government Code Section 1090 etseq. Any firm proposing to provide anytypeof investment serviceto the City shallalsoacknowledgetheir familiarity with and agreeto abide by any Federal or Statelaw, regulation, rule, or policy pertaining to or limiting campaigncontributions by suchfirms, their employees,spouses,or agents.

City ofAliso Viejo 2024- 25 Investment Polity
81 All persons, firms, broker/dealers, financialinstitutions, andadvisorsprovidinginvestment servicesor bondissueassistanceshalldiscloseto theCityManagerandtheTreasurerall fee sharing,fee-splitting,andcommissionarrangementswith otherentitiesor personsprior to the City agreeingto buy an investment or issuebonds.

Internal Investment Controls
The Treasurer will implement and maintain a system of internal investment controls and segregateresponsibilitiesof investment functions in order to prevent fraud, theft, loss of principal,lossof controloverfunds,inaccuratereporting,andnegligence.

TheTreasurerwill assigndesignee(s) to assistin carryingoutthesefunctionsandwill establish an Oversight Reviewer function that may be carried out by a designatedmember of staff, independentindividuals,or independentexpertcontractorto performspecifiedtasks.

In additionto the specifiedrequirementsplacedon investmenttypes, quality, maturity, and diversification, further controls will include:

Safekeeping of Securities
To protect againstlossescausedby the collapseof individual securitiesdealers, all securitiesownedby the City arerequiredto be held by a third-party safekeeping institution. Third-party safekeepinginstitutionsmaynot act as custodiansfor any securitieswhich that institution hasissuedor sold to the City.

Collateral must be held at safekeeping, as defined in the Safekeepingand Custody sectionof thePolicy.

Paymentproceduresfor all securitiestransactionswill be Delivery v. Payment(DVP) Competitive Bidding of Investments
The City's investment proceduresrequire that approved broker/ dealerscompete for investment purchasesand salesin order for the City to obtain the highest yield available in the market and to ensure that investment transactions are free from favoritism.

QualifiedBids will be requiredfor purchaseof all investmenttransactions. The Treasurershallselectthe bestbid and is requiredto keepa record of eachinvestment transaction.TheTreasurerwill rotatethepurchaseof investmentsamongthepool of qualified broker/ dealers.

If the City utilizesan externalinvestment advisor, the advisor shallsendits approved list of broker/dealersto theCity annuallyandfollow its policiesandproceduresfor competitive bidding.

Annual Management Review and Audit
An annualauditof theCity's InvestmentPolicy, practices, procedures, andportfolio statuswill be conductedby anindependentauditorof all itemsincluding, but not limited to, itemsspecifiedin the Audit Checklistprovidedin the City's Procedure Manual. The auditor will provide the City with written observations and recommendationsregardingthe adequacyof investmentcontrols.

Segregated Investment Execution, Recordkeeping and Reporting An independentmember of City staff will record the Treasurer's investment records or confirmations to the City's general ledger. In addition, independent staff will

City ofAliro Viejo 2024- 25 Investment Policy
82 perform the monthly reconciliationof bank, broker/dealer, and safekeeping confirmations.

SecondaryApproval Required
The City Manager will review and approve the establishment of investment accounts, broker/dealer,andfinancialinstitutionrelationshipsandanyagreementsor contracts relatedto investmentsor investmentrelatedactivity.

Wire Transfer Controls
All City wire transfers will be executedin accordancewith a written agreement specifyingcontrol proceduresrequiredfor wire transfersof funds, includingthe establishmentof repetitive wires to pay for securities transactionswith approved securitiesdealersaswell asanyother routine moneytransfers.All other non-repetitive wires requireCity Managerapprovalprior to release.

Investment Policy Adoption
TheCityCouncil'sprimaryresponsibilitiesovertheinvestmentfunctionincludesestablishing investment policies, annuallyreviewing suchpolicies, appointing a City Treasurer, reviewing monthly investmentreportsissuedby the Treasurer, authorizingbond documentsand financingtransactions,andadoptingrecommendedchangesto theCity'sInvestmentPolicyas necessary.

The City's investmentpolicyshallbeadoptedby resolutionof the City Council. The policy shallbe reviewedannuallyby the City Council and anymodifications madethereto must be approvedthe City Council.

Indemnification of Investment Officials
Anyinvestmentofficerexercisinghis/herauthoritywith duediligence,prudence,andcareand in accordancewith the Investment Policy and all written procedures shall be relieved of personalresponsibilityandliability for an individual security'slossesor lossesincurred by the portfolio.However,anyinvestmentofficeralsobearstheresponsibilityof reportingdeviations from expectationsin a timelymannerto City Councilandappropriateactionis takento control adversedevelopmentsandmitigatelossof principal.

Investment Portfolio Compliance
Shouldthe portfolio, for any reason, fall out of compliancewith this InvestmentPolicy, immediateliquidationof securitiesin order to bring theportfolio backinto compliancewill not be required. However, the Treasurermust take action to bring the portfolio into compliance within 12 months from the date the portfolio was determined to be in non- compliancewith the provisionsof this InvestmentPolicy.Additionally, adequatedisclosureof all instancesof noncompliance, and the efforts undertakento bring the portfolio into compliance,must be madeon the monthly Treasurer's Report.

City ofAliso Vieeo 2024- 25Investment Polity
83 Reportin.

The Treasurer shall submit a "Monthly Treasurer's Report" to the City Managerand City Council within 45 daysfollowing thelast dayof the month to be agendizedfor official action at a regular Council meeting thereafter. These reports shall discloseinformation relevant to the risk characteristicsof the City's investmentportfolio and shallincludethe following information:

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

B. A summaryof theinvestmentportfolio.

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

D. Averagerateof return on the City'sinvestmentportfolio.

E. Maturity aginggrouped by typeof investment.

F. Diversification of the investmentportfolio.

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 statementof compliancewith the Investment Policy, including a scheduleof any transactionsor holdings which do not comply with this policy or with the California Government Code, including a justification for their presencein the portfolio, and a timetable for resolution.

Annual Report
The annual report will be prepared by the City Treasurer and submitted to the City Managereachfiscalyear to ensureconsistency. The annualreport will include an overall analysisof theportfolio andshallsuggestpoliciesandimprovementsto enhancethe City's investment program. These enhancementswill be annually consideredby City Council andthe authority to amendthe Policy restswith City Council.

Authorized and Suitable Investments
Investment of City funds is governed by the California Government Code Sections53600, 53601, 53601.5, 53601.6, 53635, and 53635.5 etseg. Within the context of the limitations, the following investmentsareauthorized,asfurther limited herein:

City ofAliso Viejo 2024- 25Investment Polity
84 Matrix of Suitable Investment Options and Restrictions Investment Type: Maximum Maximum Maximum Par Value Credit Quality and Maturity: percentage of per Issuer: Requirements:

Portfolio:

U. S. Treasury Explicit Full Faith and Credit
Bills, Notes and 5 Years 100 percent N/ A Guarantee of United States Bonds Government
Federal Agency 5 Years
60 percent
o
Implied Guarantee of the United
Obligations
35% per agency States Government
Bankers' Domestic banksonly- deemed
Acceptances 180 Days 20 percent 5% per issuer eligible for purchaseby the BA' s) Federal Reserve Bank
Seniordebtonlyfrom top 15
Certificates of percent of peergroup rated
Deposit or Time
l
o banks, savings& loans and credit
Deposits*
5 Year, 30 percent 5/ o
per issuer
unions. Defined by Section5102
CD' s) of the Financial Code.

Negotiable Brokered CD' s insuredby FDIC
Certificates of 5 Years 30 percent 250, 000 for a maximum of$ 250,000per Deposit issuer.

Local Agency
Treasurer will review investment
Investment Fund N/ A 100 percent
75, 000, 000 policiesand practicesto
LAIF) per entity) determine if consistent with the
Policy
Highest letter and number rating
Commercial Paper 270 Days 20 percent 5% of portfolio
asprovided for by a nationally
recognizedstatistical-rating
organization( NRSRO)
Highest rating from NRSRO.
20% per fund Must alsocomply with Govt.

Money Market
N/ A 20 percent SEC Registered) Code 53601( 1) and 53601. 6( b) Mutual Funds 1.00 NAV) and the weighted average to maturity is lessthan 180days.

Signedsecurityloan agreement
on file. Underlying securities
Repurchase maintained at 102% of original
Agreements*
92 Days 20 percent 20%
value. Reverse repurchase
agreements are specifically not
authorized under the Policy.

Supranational
United States dollar
Securities
5 Years 20 percent 10 per issuer denominated senior
unsecured unsubordinated
obligations issued or
unconditionallyguaranteed
by the International Bank
for Reconstruction and
Development,
International Finance
Pale 7
City ofAliso Viejo 2024- 25 Investment Policy
85 Corporation, or Inter-
American Development
Bank; rated AA or better
by two NRSROs.

Medium Term Rated" A-" or better by a
Corporate Notes
5 Years 30 percent 5% of portfolio nationally recognizedrating service. Code 53601 ( k).

Denotesa collateralrequirementeitherinitially, orat apre-determinedthresholdPleaserefertoCollateral sectionofthePolicyfor specificrequirements.

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 Standardand Poor's (S&P) and Moody'sInvestor Service(Moody's) arerecognizedinvestmentratingsproviders, andthe City has establishedthe following minimum standardsto be applied at time of purchaseand for reporting purposes:

I n\ estment Type: Standard & Poor' s Moody' s
Banker' s Acceptances Al P1
Commercial Paper Al 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
r
Aa
Prohibited Investments
Statc and Federal laws notwithstanding, any investment not specifically described herein including,but not limited to, reverserepurchaseagreements,derivatives,options, futures,zero coupon bonds, inverse floaters, range notes, first mortgages or trust deeds, collateralized mortgageobligations (CMO's), limitedpartnerships, realestateinvestmentstrusts (REIT's), open- end mutual funds, closed- end mutual funds, mutual funds with a weighted average maturity greater than 180 days, unregulatedand/ or uninsured investment pools, common stock, preferred stock, commodities, precious metals, securitieswith high price volatility, limited marketability (less than three active bidders), securitiesthat may default on interest payments, and any other speculativeinvestment deemed inappropriate under the Prudent Investor standardare strictly prohibited. In addition, any investment transactionthat might impair public confidencein the Aliso Viejo City governmentis to be avoided.

City ofAliso Viejo 2024- 25 Investment Polity
86 Collateralization
Collateral for Certificates of Deposit ( CD) and Negotiated Certificates of Deposit ( NCD) must comply with Government Code,Chapter4, Bank Deposit Law Section16500etseq. and the Savingsand Loan and Credit Union Deposit Law Government Code Section16600etseq.

In addition, if the CD is not FDIC insuredor goesover the FDIC$ 250,000limit, collateralis requiredequalto 100percent of principal.

Collateral for RepurchaseAgreementsshallbe 102percentof market value of principal and accruedinterest. Collateralcan be either USTreasurysecuritiesor FederalAgency securities.

This will provide an addition levelof securitydueto inevitablechangesin marketconditions.

Collateralwill alwaysbe held by an independentthird partywith whom the City hasa current custodialagreement. A clearlymarkedevidenceof ownership (safekeepingreceipt) mustbe supplied to the City and retained. The right of collateral substitution is granted within the parametersandconstraintsof this Policy.

Investment Pools
Governmentsponsoredinvestmentpools (Pools)arepermitted under California Government Code Section 53601 et seq. and are an excellent short-term investment option for cash managementfacilities.Thesepools canprovide safety,liquidity, andyieldin asinglediversified investment. However, thoughtful investigationand due diligencearerequiredboth initially at time of purchaseand on an ongoing basiswith analysisto determinethat theinvestment pool is being managedin a manner consistent with the objectives of the Policy. The following guidelinesinclude,but arenot limited to:

The Pool shallhave attainedthe highest ranking or the highestletter and numerical rating provided by not less than two nationally recognized statistical rating organizations,or shallbe insuredby a municipal insurancecorporation.

The Pool marksto marketweeklyat a minimum.

The Pool provides comprehensive, timely monthly reports which include detailed transactionlistings, report realizedand unrealizedgainsand losses, provide accurate market valuesfor each security, provide quality rating for individual securities, take deliveryDVP, providethird partysafekeepingof all investments, andfor whoman audit is conducted annually by an independent auditor with no relationship to the Pool.

Mone Market Mutual Funds
Money market mutual funds provide another safe, liquid, and diversified investment option for the City's surpluscapital.However, certainconditions needto be met both initially andon an ongoing basis.The money market mayonly investin US Government securitiespermitted under this policy andunder California Government CodeSection53601etseq.withfmal stated maturitiesof one yearor less "Government Money Market Funds." In order to be an eligiblemoney market investment under this section, the primary objective of the money market, asstatedin the funds' prospectus, is to maintain a constant $1.00 Net AssetValue( NAV). The following additionalguidelinesinclude,but arenot limited to:

The money market only invests in US Government securities, and the weighted averagematurity of the portfolio is lessthan 180days.

City ofAliso Viejo 2024- 25 Investment Policy
87 The fund shall be registered with the SEC.

The money market shall have attained the highestranking or the highest letter and numericalrating provided by not lessthan two nationally recognizedstatisticalrating organizations and shall maintain these ratings for the duration of the investment.

Maturity Limits
The longerthematurityof securities,thegreaterthemarketvolatility. Therefore, themaximum maturitylimit for anygivensecurityin theinvestmentportfolio shallnotexceedfive (5)years.

It is also important to note that specific investments, detailed under the " Authorized and SuitableInvestments" section,maybe restrictedto a shortermaturity.

The weightedaveragelife of the portfolio maynot exceedthree (3) yearsin duration.

At a minimum, 15percent of the portfolio shallremainliquid, accessibleon demandby the City without restriction or penalty.

The investment portfolio shallbe structuredfor liquidity purposes; therefore, 40 percent of the portfolio shallmaturewithin 365-days.

Maturitieswill beselectedbasedon asufficientlydetailedcashflow projectionthat facilitates selectinginvestment maturity datesto approximatelymatch the projected datesof budgeted expenditures.Once cashflow needsarematched,maturitiesareselectedbasedon a" laddering strategy"andthe shapeof the yield curve.

Extensions in the maximum maturity and averageweighted life of the portfolio must be supportedby detailedcashflow forecastsdemonstratingthe adequacyof cashfrom maturing assetsto meet one hundred twenty-five percent (125%) of monthly expendituresfor each prospectivequarter,endingwith the current maximum including capitalexpendituresfunded on a pay-as-you-go basis. Recommendationsto extend maturities must be reviewed and approvedby the City ManagerandCity Council.

Qualifications for Financial Institutions and Broker/ Dealer' s The Treasurer will maintain a list of qualified financial institutions and broker/ dealers authorizedto transactbusinesswith theCity, asstatedin Appendix" B".

If the City utilizes a SEC registeredexternalinvestment advisor, the advisor shallmaintain a list of authorizedbroker-dealersand completethe appropriatedue diligencerequiredby the SEC. The externalinvestment advisor may useits own list of approved broker/ dealersand financialinstitutionsfor investmentpurposeson behalfof theCity. Theinvestmentadvisor shallsubmit thelist of approvedbroker/ dealersto the FinanceDirector/ City Treasureron an annual basis. The Finance Director/ City Treasurer may restrict the use of a broker/ dealer which may be deemedunsuitable.

The financialentitieseligibleto transactinvestment businesswith the City are:

I. Federal Reserve Bank:

Direct purchase of U.S. Treasury Bills, Notes, and Bonds using primary government dealersasdesignatedby the FederalReserveareexemptfrom qualityrequirementsandare encourageddue to commissionor mark-up discounts.

II. Nationally or StateCharteredBanks,SavingsandLoans,andCredit Unions:

The City maypurchaseinvestmentsofferedfrom Banks, SavingsandLoans, andCredit

City ofAliso Vieio 2024- 25 Investment Policy
88 Unions provided the institutions are:

Nationally or StateCharteredInstitutions.

Registered as investment securities dealers.

Rankedin the top 15percentof institutions within their respectivepeergroup.

The signaturesof two individuals shallbe requiredfor the openinganddosing of anybank account(theTreasurer,City Manager,Mayor, or Mayor Pro Tem).

The Accounting Officer, who is independentof the investment function, shall keep a record of all opened and closed accounts. On an annual basis, the Accounting Officer shallprovide alist of accountsto theindependentauditor.

III. Broker/ Dealers:

The City will purchaseinvestmentsfrom primary dealerswheneverpossible. However, if an investment deemedappropriatefor the portfolio is not availablethrough the primary market, then the Treasurermay usean authorized broker/ dealerfrom the pre-approved list of broker/ dealers on record.

For a broker/dealerto beconsideredfor placementon thepre-approvedlist, theymust comply with the following
Primaryor Regionaldealersthat qualify for SECRule 15c3-1 Provide auditedfinancialstatementsfrom the two most frequentyears A statementcertifying that the institution hasreviewedthe City's Investment Policy and California Government Code Section 53600 et seq. and that all securitiesoffered to the City shallcomply fully with allprovisions of the Policy and the California Government Code.

The signaturesof two individuals shallbe requiredfor the opening andclosing of any broker/ dealeraccount (the Treasurer, City Manager, Mayor or Mayor Pro Tem). The Accounting Officer, who is independent of the investment function, shall keepa record of all openedand closedaccounts. On an annual basis,theAccounting Officer shallprovide alist of accountsto theindependent auditor.

Settlement of securities traded through qualified broker/ dealers shall occur tradedateplusoneor two days (dependingupon securitytype), the current industry standard. New issuesecuritiesmayhavelonger settlements,but none shallbe greaterthan threeweeks.

The Treasureris responsiblefor ensuringthat settlementoccursin a timely matter and that execution confirmations reflect accurate trade data. In addition, investmenttransactionsarerequiredto be Delivery v. Payment(DVP).

Diversification Guidelines and Risks
The City recognizesdiversification is an investment strategythat 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 financialinstitutions, geographicareas,industry types,andmaturities.

City ofAliso Vivo 2024- 25 Investment Polity
89 The City will only investin fixed rate, fixed maturity securitiesand,with the exceptionof U.S.

Treasurysecuritiesor theLocal AgencyInvestmentFund( LAIF), no more than 60percentof theinvestmentportfolio shallbeinvestedin anysingleinvestmenttypeor financialinstitution.

Safekeepin• and Custod
All security transactions, including collateral for repurchaseagreementsand certificates of deposit, shall be transactedon a Delivery vs. Payment (DVP) basis. This means that the securitiesshall be deliveredto the City or the City's designatedcustodian upon receipt of paymentby the City.

All securitiesthat may be purchased, including collateral, shall be held by a third-party custodiandesignatedby theTreasurerwheneverpossible.Thesesecuritiesshallbe held in the City's name and control, and the third-party custodian shall be evidencedby safekeeping receipts. The third-party custodian shall send the City, on a monthly basis, a summary of safekeepingassets, and this statementshallbe reconciledto the City's records on a monthly basis.Securitiesheldin custodyfor theCity shallbe independentlyauditedon an annualbasis to verify investment holdings.

Performance Standards and Evaluation
Investmentperformanceis continuallyr;ionitored and evaluatedby the City Treasurer.

Investment activity reports are generatedon a monthly basis for presentation to the City Managerand City Council.

The weighted averagematurity of the pooled portfolio shallnot exceedthreeyearsand 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 characteristicsof the portfolio.

An annual audit of the City's Investment Policy, practices, procedures, and portfolio status will be conductedby an independentauditor of all items including, but not limited to, items specifiedin the Audit Checklist provided in the City's ProcedureManual. The auditor will provide the City Managerand City Council with written observationsand recommendations regardingthe adequacyof investment controls.

Qualifications and Continuing Education
The City Treasurershallbe a City employeeor contractemployee. The Treasurershallbe selectedon the basis of educationalbackground and experiencerelevant to the Treasury function.

The City recognizesthe needfor andis committed to providing ongoing educationspecific to the investment function for the Treasurer and other City staff and officials involved in the investment process.

City
ofAliso Vigo 2024- 25Investment Policy
90 GLOSSARY OF TERMS
Accrued Interest - Interest earnedbut not yet received.

Active Deposits - Fundswhich areimmediatelyrequiredfor disbursement.

Agencies - Federalagencysecuritiesand/ or Government-sponsoredenterprises.

Amortization - An accountingpracticeof graduallydecreasing (increasing) an asset's book valueby spreadingits depreciation (accretion) over a period of time.

Asking Price - The price a broker/ dealeroffers to sellsecurities. SeeOffer Bankers' Acceptance ( BA) - A " draft" or bill or exchangeacceptedby a bank or trust company.Theacceptinginstitutionguaranteespaymentof thebill, aswellastheissuer.

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

Beat Market- A periodof generallypessimisticattitudesanddecliningmarketprices.

Bid- The price offered by a buyer of securities. (When you aresellingsecurities,you askfor a bid.) See Offer.

Bond- A financialobligation for which the issuerpromisesto paythebondholder a specified streamof future cashflows, including periodic interestpaymentsand aprincipal repayment.

Book Value- The valueatwhich adebt securityis shownon theholder'sbalancesheet.Book valueis acquisitioncostlessamortizationof premiumor plusaccretionof discount.

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

Bull Market- A periodof generallyoptimisticattitudesandincreasingmarketprices.

Callables- Securitiesthat the issuer has the right to redeem prior to maturity.

Certificate of Deposit - A time depositwith a specific maturity, evidencedby a certificate.

Large-denominationCD's aretypicallynegotiable. CD'smaybe eligiblefor FDIC insurance.

Collateral - Securities, evidenceof deposit, or pledgesto securerepaymentof a loan. Also refersto securitiespledgedby abankto securedepositof publicmoneys.

Commercial Paper- Short-term,unsecuredpromissorynotesissuedby acorporation to raise working capital. Thesenegotiableinstruments arepurchasedat a discount to par valueor at par valuewith interestbearing.

Comprehensive Annual Financial Report( CAFR)- The official annual financial report for the City. It includesgovernment-wide and fund financial statementspreparedin conformity with GenerallyAcceptedAccounting Principals (GAAP).

Constant Maturity Treasury( CMT)- An averageyieldof aspecificTreasurymaturity sector for a specific time frame, or an index of the averageyield on United StatesTreasurysecurities adjustedto aconstantmaturity.This is amarketindex for referenceof pastdirection of interest ratesfor the given Treasurymaturity range.

Coupon- The annualrateof interestthat a bond'sissuerpromisesto paythe 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 meetdebt obligations.

Appendix A
91 GLOSSARY OF TERMS ( continued)
Current Yield - The interestpaid on an investmentexpressedasa percentageof the current price of the security.

Custody - A bankingservicethat providessafekeepingfor the individualsecuritiesin a customer's investment portfolio under a written agreementwhich alsocalls for the bank to collect and payout income, to buy, sell, receive, anddeliver securitieswhen ordered to do so by the principal.

Debenture- A bond securedonly by the generalcredit of the issuer.

Delivery v. Payment ( DVP) - Delivery of securities with a simultaneous exchangeof paymentfor the securities.

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

Derivatives - ( 1) Financialinstrumentswhosereturn profile is linked to, or derived from, the securityand may include a leveragingfactor, or (2) financial contracts basedupon notional amount whose value is derived from an underlying index or security (interest rates, foreign exchange rates, equities, or commodities).

Discount- The differencebetweenthe costof a securityandits valueat maturity when quoted at lower than face value.

Discount Securities - Non- interest bearing money market instruments that areissuedat a discountandredeemedatmaturityfor full facevalue,e.g.,U. S.TreasuryBills.

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

Duration - The weighted averagematurity of a bond's cashflow stream, where the present valueof the cashflows servesasthe weights;the future point in time atwhich, on average,an investor hasreceivedexactlyhalf of the original investment in presentvalue terms; a bond's zero-coupon equivalent;the fulcrum of a bond's presentvaluecashflow time line.

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

Federal Credit Agencies - Agenciesof the FederalGovernment set up to supply credit to various classesof institutions and individuals, e.g., Savingsand Loans, small businessfirms, students, farmers, farm cooperatives, and exporters.

Federal Deposit Insurance Corporation ( FDIC) - Insuranceprovided to customersof a subscribingbank,which guaranteesdepositsto a setlimit( currently$ 100,000)per account.

Federal Funds Rate - The rate of interest at which Federal funds are traded. This rate is currently peggedby the FederalReservethrough open-marketoperations.

Federal Home Loan Banks ( FHLB)— Government- sponsored wholesale banks which lend funds and provide correspondent banking servicesto member commercial banks, thrifty institutions, credit unions, andinsurancecompanies. The mission of the FHLBs is to liquefy thehousingrelatedassetsof its memberswho must purchasestock in their district Bank.

Appendix A
92 GLOSSARY OF TERMS ( continued)
Federal Home Loan Mortgage Corporation( FHLMC) - The FHLMC was created under theFederalHomeLoanMortgageAct,Title III of theEmergencyHomeFinanceAct of 1970 asa stockholder-ownedgovernment-sponsoredenterprise. FreddieMac, asthe corporation is called, is chargedwith providing stability and assistanceto the secondaryhome mortgage market by buying first mortgagesand participation interestsand resellingthesesecuritiesin the form of guaranteedmortgage securities. Although agencyobligations are not explicitlyg P guaranteedby the federalgovernment, the rating agenciesbelievethat in the unlikely eventof financialdifficulties, the federalgovernmentwill support theagencyto theextentnecessaryto provide for full andtimely paymenton 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 auspicesof the Department of Housing andUrban Development (HUD).

It is thelargestsingleprovider of residentialmortgagefundsin the United States. FannieMae, as the corporation is called, is a private stockholder-owned corporation. The corporation's purchasesinclude avariety of adjustablemortgagesandsecondloans,in addition to fixed-rate mortgages. FNMA' s securitiesarealsohighly liquid and arewidely accepted. FNMA assumes andguaranteesthat all securityholderswill receivetimely paymentof principal andinterest.

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 FederalReserveBank is a permanentmember,while the other Presidentsserveon arotatingbasis.TheCommitteeperiodicallymeetsto setFederalReserveguidelinesregarding purchasesand salesof Government Securitiesin the open market asa meansof 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 transmissionserviceestablishedby the FederalReserveBank to facilitate thetransferof fundsthroughdebitsandcreditsof fundsbetweenparticipantswithin theFed system.

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

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

GovernmentNational MortgageAssociation(GNMA) - Securitiesinfluencingthevolume of bank credit guaranteedby GNMA and issuedby mortgage bankers, commercial banks, savingsand loan associations, and other institutions. Securityholder is protected by the full faith and credit of the U.S. Government. Ginnie Mae securitiesarebackedby the FHA, VA, or FmHA mortgages.The term" pass-throughs" is often usedto describeGinnie Macs.

Inactive Deposits - Fundsnot immediatelyneededfor disbursements.

Interest Rate- The annualyield earnedon an investment,expressedasapercentage.

Investment Agreements - An agreementwith a financialinstitution to borrow public funds subjectto certainnegotiatedtermsandconditionsconcerningcollateral,liquidity,andinterest rates.

Appendix A
93 GLOSSARY OF TERMS ( continued)
LAIF ( Local Agency Investment Fund) - A specialfund in the StateTreasurywhich local agenciesmay useto 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 balanceof $75,000,000 for any agency. It offers high liquidity becausedepositscan be converted to cash in 24 hours and no interest is lost. All interest is distributed to those agencies participating on a proportionate sharebasisdetermined 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 placedwith the StateTreasurerfor depositin the Local Agency Investment Fund by cities, counties, or specialdistricts shall not be subject to impoundment or seizureby anystateofficial or stateagency."
Liquidity- Refersto the ability to rapidly convert aninvestment into cashwith minimal risk of losing someportion of principal and/or interest.

Local Government Investment Pool ( LGIP) - The aggregateof 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 securityis trading and could presumablybe purchased or sold.

Master Repurchase Agreement- A written contract coveringall future transactionsbetween thepartiesto repurchaseand/or reverserepurchaseagreementsthatestablisheseachparty's rights in the transactions. A masteragreementwill specify, among other things, the right of the buyer-lender to liquidate the underlying securitiesin the event of default by the seller- borrower.

Maturity- The dateupon which the principal or statedvalueof an investmentbecomesdue andpayable.

Medium Term CorporateNotes - Unsecuredpromissorynotesissuedby a corporation organizedandoperatingin the United States.Thesearenegotiableinstrumentsand aretraded in the secondarymarket. Medium term corporate notes canbe defined asextendedmaturity commercialpaper. Localagenciesarerestrictedby theGovernmentCodeto investmentsin corporationsratedin thetopthreenotecategoriesbyMoody'sInvestorsService,Inc.,and/or Standardand Poor's Corporation. For mediumterm notes, eligiblepurchasesconsistof instrumentsthathavearatingof" A" or betterby both Moody's InvestorsService, Inc., and Standard and Poor' s Corporation.

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

Negotiable Certificates of Deposit - Unsecured obligations of the financial institution, or bank,boughtatparvaluewith thepromiseto payfacevalueplusaccruedinterestatmaturity.

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 occasionallyavailable.As a matter of practice,only the tenlargestU.S. bankswhere thereis a secondarymarketestablishedfor continuedliquidity would be consideredfor investment.

Appendix A
94 GLOSSARY OF TERMS ( continued)
NRSRO- Nationally recognizedstatistical-rating organization New Issue- Term usedwhen a securityis originally" brought" to market.

Offer- The price askedby a sellerof securities. (When you arebuying securities,you askfor an offer.) SeeAsking PriceandBid.

Open Market Operations - Purchasesand salesof governmentand certain other securities in theopen marketby the New York FederalReserveBank asdirectedby the FOMC in order to influence thevolume of moneyandcreditin the economy.Purchasesinject reserveinto the bank systemand stimulategrowth of money and credit; saleshavethe opposite effect. Open marketoperationsaretheFederalReserve's most important andmost flexible monetarypolicy tool.

Paper Gain or Loss- Term usedfor unrealizedgainor losson securitiesbeingheldin aportfolio basedon comparisonof currentmarketquotesandtheiroriginalcost.This situationexistsaslong as the security is held while there is a difference between cost value (book value) and the market value.

Perfected Delivery- Refersto aninvestmentwherethe actualsecurityor collateralis held by anindependentthird party representingthe purchasingentity.

Portfolio- Collection of securitiesheld by an investor.

Primary Dealer - A group of government securitiesdealersthat submit daily reports of market activity and securitypositions held to the FederalReserveBank 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,suchasa trustee,mayinvestmoney only in a list of securitiesselectedby the custody state - the so-calledlegallist. In other states, the trusteemay invest in a securityif it is one whichwouldbeboughtby aprudentpersonof discretionandintelligencewho is seekinga reasonableincome andpreservationof capital.

Purchase Date - The date in which a securityis purchasedfor settlementon that or a later date.

Qualified Public Depositories - A financial institution that does not claim exemption from thepaymentof anysalesor compensatinguseor advalorem taxesunder thelawsof this state, which hassegregatedfor thebenefit of thecommissioneligiblecollateralhavingavalue of not lessapprovedby thePublicDepositProtectionCommissionto holdpublicdeposits.

Rate of Return- The yield obtainableon a securitybasedon its purchaseprice 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 agreementto repurchasethem 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 theagreementarestructuredto compensatehim for this. DealersuseRPextensivelyto finance their positions. Exception: When the Fed is said to be doing RP, it is lending money, or increasingbank reserves.

AppendixA
95 GLOSSARY OF TERMS ( continued)
Reverse Repurchase Agreement ( Reverse REPO) - A transactionwhere the seller (City) agreesto buy back from the buyer (bank) the securitiesat an agreedupon price after a stated period of time.

Risk- Degreeof uncertaintyof return on an asset.

Safekeeping- SeeCustody.

Secondary Market- A marketmadefor thepurchaseandsaleof outstandingissuesfollowing the initial distribution.

Securities and Exchange Commission - Agency createdby Congressto protect investors in securitiestransactionsby administeringsecuritieslegislation.

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

Settlement Date- The dateon which a tradeis clearedby deliveryof securitiesagainstfunds.

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

Structured Notes- Notes issuedby government-sponsoredenterprises (FHLB, FNMA, etc.) andcorporationsthat haveimbeddedoptions (e.g.,call features,step-up coupons, floating rate coupons, derivative-based returns) in their debt structure. Their market performance is impactedby the fluctuation of interestrates,thevolatility of theimbeddedoptions, and shifts in the shapeof the yield curve.

Supranational- A supranationalentity is formed by two or more centralgovernmentswith the purpose of promoting economic development for the member countries. Supranational institutions financetheir activitiesby issuingdebt, suchassupranationalbonds. The threeU.S. based supranationals are International Bank for Reconstruction and Development, the International Finance Corporation, and the Inter- American Development Bank.

Swap - The saleof one issueand the simultaneouspurchaseof another for someperceived advantage.

Treasury Bills - A non-interestbearingdiscountsecurityissuedby the U.S. Treasuryto 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 securitiesissued as direct obligationsof the U. S. Government and havinginitial maturitiesof more than ten years.

Treasury Notes - Medium-term coupon-bearing U. S. Treasury securitiesissued as direct obligationsof the U. S. Government andhaving initial maturitiesfrom 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.

Indebtednesscovers all money owed to a firm, including margin loans and commitments to purchasesecurities,one reasonnew public issuesarespreadamongmembersof underwriting syndicates. Liquid capitalincludescashand assetseasilyconvertedinto cash.

U.S. Government Agencies - Instruments issuedby various U.S. Government Agencies, most of which aresecuredonly by the credit worthiness of the particularagency.

Yield - The rateof annualincomereturnon aninvestment, expressedasa percentage. It is obtainedbydividingthecurrentdollarincomeby thecurrentmarketpriceof thesecurity.

Appendix
96 Yield to Maturity- Therateof incomereturnon aninvestment,minusanypremiumor plus any discount, with the adjustmentspreadover the period from the date of purchaseto the dateof maturity of the bond, expressedasapercentage.

Appendix A
97 QUALIFIED BROKER/ DEALERS
The City hasqualifiedthe following Broker/ Dealer's:

Cantella& Co. Inc
Great Pacific Securities
Higgins Capital
Morgan Stanley
Multi- Bank Securities, Inc
Mutual Securities, Inc
RaymondJames& Associates,Inc.

Time Value Investments
UBS Financial Services, Inc
Wedbush Securities
Appendix B
98 ADMINISTRATIVE POLICY
Investment Guidelines, Strategy, and Internal Control
Appendix C
99 Of OI
City of Aliso ViejoO
As ADMINISTRATIVE POLICY
Cal1FOR$9'
SUBJECT APPROVED B : ' PROCEDURE NO. EFF. DATE PAGE

INVESTMENT GUIDELINES, STRATEGY
11 7/ 1/ 2015 1 of 4AND INTERNAL CONTROL
RevDave Doyle
CITY 7/ 1/ 2017

MANAGER
7/ 1/ 2023

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 cashflow 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.
100
s %,
City of Aliso Viejo
1 a ADMINISTRATIVE POLICY
SUBJECT APPROVED B : PROCEDURE NO. EFF. DATE PAGE
INVESTMENT GUIDELINES, STRATEGY ,\
11 7/ 1/ 2015 2 of 4AND INTERNAL Asp, Rev
Dave Doyle
CITY 7/ 1/ 2017
MANAGER 7/ 1/ 2023

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. RiskAssessment- Riskassessmentinvolves 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. 101
SO
City of Aliso Viejo0
AI;
At. ADMINISTRATIVE POLICY
oiuFORs r'
SUBJECT APPROVED B : PROCEDURE NO. EFF. DATE PAGE
INVESTMENT GUIDELINES, STRATEGY `
11 7/ 1/ 2015 3 of 4AND INTERNAL CONTROL r-- • RevDave Doyle CITY 7/ 1/ 2017

MANAGER
7/ 1/ 2023
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. 102
City of Aliso Viejo

ADMINISTRATIVE POLICY
SUBJECT APPROVED B : PROCEDURE NO. EFF. DATE PAGE

INVESTMENT GUIDELINES, STRATEGY
11 7/ 1/ 2015 4 of 4AND INTERNAL CONTROL
Dave Doyle Rev
CITY 7/ 1/ 2017

MANAGER
7/ 1/ 2023

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. 103
City of Aliso Viejo

AGENDA ITEM

DATE: June 18, 2025

TO: Mayor and City Council

FROM: Ann Eifert, Director of Financial Services/City Treasurer

SUBJECT: APPROPRIATIONS LIMIT – FISCAL YEAR 2025-26

Recommended Action:

Adopt a Resolution setting the Proposition 4 (GANN) Appropriations limit for Fiscal Year (FY) 2025-26 at $62,243,329.

Fiscal Impact:

None.

Background:

Pursuant to Article XIIIB of the California Constitution, the City must compute an annual appropriations limit (known as the Gann Limit), which places a ceiling on the total amount of tax revenues the City can appropriate annually. The limit is adjusted each year using the following factors: 1) the percentage change in C alifornia Per Capita Income, or the change in the City’s Assessed Valuation due to new non -residential construction, whichever is greater; and 2) the percentage change in the Citywide, or Countywide population, whichever is greater. As required by Government Code Section 7910, the City Council is being asked to formally adopt by resolution the Appropriations Limit for F Y 2025-26.

Discussion:

The Cal ifornia per capita personal income percentage change as provided by the Department of Finance is 6.44% for FY 20 25-26. The percentage change in the local assessment roll from the preceding year for the City due to the addition of local non - residential new construction is 0.79%. Section 7901 of the Government Code allows entities to use either the po pulation increase within the City or the increase within the County. This yea r the estimated population change for the City was –0.45% and the County was 0.17%.

104

It is recommended that the City Council adopt the percentage change in the County population and the percentage change in the California per capital personal income from the preceding year for use in the adjustment of the Appropriations Limit for Fiscal Year 2025-26. The appropriations limit for FY 2025-26 is $62,243,329 and the budget subject to the limit is $ 19,588,263; therefore, the City is in compliance with Government Code requirements. For FY 2025-26. The City will be utilizing 31.5% of its appropriations limit.

Attachments:

1. Resolution

2. GANN Limit Calculation

105
RESOLUTION NO. 2025-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ALISO
VIEJO, CALIFORNIA, SETTING THE PROPOSITION 4 (GANN)
APPROPRIATIONS LIMIT FOR FISCAL YEAR 2025-26 FOR THE CITY

OF ALISO VIEJO

WHEREAS, Article X111B of the Constitution of the State of California (enacted with the passage of Proposition 4 in 1979 and modified with the passage of Proposition 111 in 1990), provides that the total annual appropriations limit of such entity for the prior year be adjusted for changes in the non -residential assessed valuation or the percentage change in the California Per Capita Income and population except as otherwise specifically provided for in said Article; and

WHEREAS, Section 7910 of the Government Code provides that each year the governing body of each local jurisdiction shall, by resolution, establish its appropriations limit for the following fiscal year pursuant to Article X111B at a regularly scheduled meeting or a noticed special meeting. Prior to such meeting, documentation used in the determination of the appropriation limit shall be available to the public; and

WHEREAS, Proposition 111 as approved by the voters of the State of California, revised the method for calculating the Gann Spending Limit. It also requires a recorded vote of the City Council regarding which of the annual adjustment factors have been selected each year; and

WHEREAS, the County of Oran ge, Local Agency Formation Commission (LAFCO), established the appropriations limit for the newly incorporated City; and

WHEREAS, the City Council of the City of Aliso Viejo wishes to establish the appropriation limit for Fiscal Year 2025-26 for the City of Aliso Viejo.

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

Section 1. That it is hereby found and determined that the documentation used in the determination of the appropriations limit for the City of Aliso Viejo for Fiscal Year 2025-2026 was available to the public in City offices of said City at least fifteen days prior to this date.

Section 2. That pursuant to the provisions of Section 56812(b) of the California Government Code, a measure concerning the establishment of the permanent appropriations limit for the City of Aliso Viejo was submitted and approved at the General Municipal election held in the City of Aliso Viejo on November 2, 2004.

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Section 3. That the factors recommended are the percentage change in the Countywide population of 0.17% and the percentage change in the California per capital personal income from the preceding year of 6.44%.

Section 4. That the Appropriations Limit for the City of Aliso Viejo is established in accordance with the California Government Code and is $62,243,329.

Section 5. That the Mayor of the City of Aliso Viejo shall sign and the City Clerk shall certify to the passage and adoption of this Resolution.

PASSED, APPROVED AND ADOPTED this 18th day of June 2025.

__________________________
Tiffany Ackley
Mayor

APPROVED AS TO FORM: ATTEST:

__________________________ __________________________ Scott C. Smith, City Attorney Janet Martinez, MMC, City Clerk

STATE OF CALIFORNIA )
107
COUNTY OF ORANGE ) ss.

CITY OF ALISO VIEJO )

I, JANET MARTINEZ, City Clerk of the City of Aliso Viejo, California, DO HEREBY CERTIFY that the foregoing is the original of Resolution No. 202 5-__ duly passed and adopted by the City Council of the City of Aliso Viejo at their regular meeting held on the 18th day of June, 2025, by the following roll call vote, to wit:

AYES:

NOES:

ABSENT:

___________________________

JANET MARTINEZ

CITY CLERK

(SEAL)

108
California Per Capita Income 6.44%
% Change over Prior Year
Population Change -0.45%
% Change over Prior Year (City)
Per Capita converted to a Ratio 1.064400
Population converted to a Ratio 0.995500
Calculation of Growth Factor 1.059610
2024-25 Appropriations Limit 58,378,143 $
2025-26 Appropriations Limit 61,858,076$ (NOT RECOMMENDED) California Per Capita Income 6.44%
% Change over Prior Year
Population Change 0.17%
% Change over Prior Year (County)
Per Capita converted to a Ratio 1.064400
Population converted to a Ratio 1.001700
Calculation of Growth Factor 1.066209
2024-25 Appropriations Limit 58,378,143 $
2025-26 Appropriations Limit 62,243,329 $ ( RECOMMENDED)

CITY OF ALISO VIEJO

APPROPRIATIONS LIMIT WORK SHEET

COUNTYWIDE POPULATION CALCULATION
2025-26

CITY OF ALISO VIEJO

APPROPRIATIONS LIMIT WORK SHEET

CITYWIDE POPULATION CALCULATION
2025-26
109
Non-Residential New Construction 0.79%
% Change over Prior Year
Population Change 0.17%
% Change over Prior Year (County)

1.007900
Population converted to a Ratio 1.001700
Calculation of Growth Factor 1.009613
2024-25 Appropriations Limit 58,378,143$
2025-26 Appropriations Limit 58,939,357$ (NOT RECOMMENDED) Fiscal Year Appropriations Percentage
Limit Change
2001-2002 Base Year 9,700,000 Base Yr.
2002-2003 Adjusted Base 9,774,092 0.76%
2003-2004 Adjusted Base 10,341,870 5.81%
2004-2005 Adjusted Base 10,910,727 5.50%
2004-2005 Actual 10,493,809 -3.82%
2005-2006 Adjusted Base 12,795,601 21.93%
2006-2007 Adjusted Base 13,334,344 4.21%
2007-2008 Adjusted Base 13,954,603 4.65%
2008-2009 Adjusted Base 14,985,870 7.39%
2009-2010 Actual 18,492,058 23.40%
2010-2011 Actual 18,215,199 -1.50%
2011-2012 Actual 18,870,328 3.60%
2012-2013 Actual 27,710,088 46.84%
2013-2014 Actual 29,396,830 6.09%
2014-2015 Actual 32,633,003 11.01%
2015-2016 Actual 34,245,483 4.94%
2016-2017 Actual 36,441,702 6.41%
2017-2018 Actual 38,047,127 4.41%
2018-2019 Actual 42,360,293 11.34%
2019-2020 Actual 44,118,739 4.15%
2020-2021 Actual 45,974,884 4.21%
2021-2022 Actual 48,200,927 4.84%
2022-2023 Actual 53,660,602 11.33%
2023-2024 Actual 56,164,572 4.67%
2024-2025 Actual 58,378,143 3.94%
2025-2026 Actual 62,243,329 6.62%

ANNUAL APPROPRIATIONS LIMIT
2025-26

CITY OF ALISO VIEJO

APPROPRIATIONS LIMIT WORK SHEET

NON-RESIDENTIAL NEW CONSTRUCTION CALCULATION
2025-26
Non-Residential new construction
converted to a Ratio

CITY OF ALISO VIEJO
110

May 2025

Dear Fiscal Officer:

Subject: Price Factor and Population Information

Appropriations Limit
California Revenue and Taxation Code Section 2227 requires the Department of Finance to transmit an estimate of the percentage change in population to local governments. Each local jurisdiction must use their percentage change in population factor for January 1, 20 25, in conjunction with a change in the cost of living, or price factor, to calculate their appropriations limit for fiscal year 2025-26. Attachment A provides the change in California’s per capita personal income and an example for utilizing the price factor and population percentage change factor to calculate the 2025-26 appropriations limit. Attachment B provides the city and unincorporated county population percentage change along with the population percentage change for counties and their summed incorporated areas. The population percentage change data excludes federal and state institutionalized populations and military populations.

Population Percent Change for Special Districts
Some special districts must establish an annual appropriations limit. California Revenue and Taxation Code Section 2228 provides additional information regarding the appropriations limit.

Article XIII B, Section 9(C) of the California Constitution exempts certain special districts from the appropriations limit calculation mandate. The code section and the California Constitution can be accessed at the following website: http://leginfo.legislature.ca.gov/faces/codes.xhtml.

Special districts required by law to calculate their appropriations limit must present the calculation as part of their annual audit. Any questions special districts have on this requirement should be directed to their county, district legal counsel, or the law itself. No state agency reviews the local appropriations limits.

Population Certification
The population certification program applies only to cities and counties. California Revenue and Taxation Code Section 11005.6 mandates Finance to automatically certify any population estimate that exceeds the current certified population with the State Controller’s Office. Finance will certify the higher estimate to the State Controller by June 1, 2025.

Please Note: The prior year’s city population estimates may be revised. The per capita personal income change is based on historical data.

If you have any questions regarding this data, please contact the Demographic Research Unit at (916) 323-4086.

JOE STEPHENSHAW
Director
By:

ERIKA LI
Chief Deputy Director

Attachment
111

May 2025
Attachment A

A. Price Factor: Article XIII B specifies that local jurisdictions select their cost of living factor to compute their appropriation limit by a vote of their governing body. The cost of living factor provided here is per capita personal income. If the percentage change in per capita personal income is selected, the percentage change to be used in setting the fiscal year 2025-26 appropriation limit is:

Per Capita Personal Income

Fiscal Year Percentage change
(FY) over prior year

2025-26 6.44

B. Following is an example using sample population change and the change in California per capita personal income as growth factors in computing a 2025-26 appropriation limit.

2025-26:

Per Capita Cost of Living Change = 6.44 percent
Population Change = 0.28 percent

Per Capita Cost of Living converted to a ratio: 6.44 + 100 = 1.0644 100

Population converted to a ratio: 0.28 + 100 = 1.0028 100

Calculation of factor for FY 2025-26: 1.0644 x 1.0028 = 1.0674

112
California Department of Finance
Demographic Research Unit
Population Data for Price and Population Letter
Population and Excluded Population for January 1, 2024 and January 1, 2025 Released: May 1, 2025
Table of Contents (links to internal worksheets)
Population and Excluded Population 2024 and 2025
For more information:
https://dof.ca.gov/forecasting/demographics/estimates-e1/ Data Prepared by:

Demographic Research Unit
California Department of Finance
e-mail: [email protected]
phone: 916-323-4086
113
FISCAL YEAR 2025-26 About the Data
Attachment B
Annual Percent Change in Population Minus Exclusions*
January 1, 2024 to January 1, 2025 and Total Population January 1, 2025 City County Percent Change 24-25
Population Minus
Exclusions 1-1-24
Population Minus
Exclusions 1-1-25 Total Population 1-1-25
Aliso Viejo City Orange -0.45 50,442 50,213 50,213 County Total Orange 0.17 3,169,873 3,175,233 3,175,427 *Exclusions include residents on federal military installations and group quarters residents in state mental institutions, state and federal correctional institutions and veteran homes. 114
115
116
City of Aliso Viejo

AGENDA ITEM

DATE: June 18, 2025

TO: Mayor and City Council

FROM: Shaun Pelletier, Public Works Director / City Engineer

SUBJECT: FISCAL YEAR 2025-26 PROJECT LIST FOR ROAD MAINTENANCE AND REHABILITATION ACCOUNT FUNDING (SB 1)

Recommended Action:

Adopt a Resolution of the City Council of the City of Aliso Viejo which adopts a list of projects for fiscal year 2025-26 funded by SB 1: The Road Repair and Accountability Act of 2017.

Fiscal Impact:

SB 1 Road Maintenance and Rehabilitation Account (RMRA) funds are projected to be about $1,358,908 in FY 2025-26.

Background:

This Road Maintenance and Rehabilitation Account (RMRA) funding began being received in January 2018 with projected funds collected of around $7.3 million through the remainder of this year and about $1,300,000 next fiscal year.

Current year funds were to be applied toward Aliso Viejo Parkway (Enterprise to Aliso Creek Road) design, and Glenwood Drive ( SR-73 to Aliso Creek Road) construction , which has been delayed until FY 2025-26.

Discussion:

Use of RMRA funds requires additional reporting through the California Transportation Commission (CTC). Each year the Council -approved projects proposed to utilize the funds must be submitted to the CTC for approval. Expenditure reports are subsequently due at the end of each year to account for the funds. The required resolution adopting the project list to be sent to CTC is attached for Council approval.

Projects utilizing SB 1 funds in FY 2025-26 may include the following:

117

Glenwood Drive (SR-73 to Aliso Creek Road) Rehabilitation (Construction) Cedarbrook (Glenwood Drive to Aliso Viejo Parkway) Rehabilitation (Construction) Aliso Viejo Parkway (Enterprise to Aliso Creek Road) Rehabilitation (Construction) Slurry Seal Area 1 (Construction)
Columbia & Argonaut Rehabilitation (Design)

Staff respectfully recommends approval of the attached resolution.

Environmental:

Each proposed project will include required environmental actions prior to commencing construction.

Attachment:

1. Resolution

118

RESOLUTION NO. 2025-____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ALISO

VIEJO, CALIFORNIA, ADOPTING A LIST OF P ROJECTS FOR FISCAL YEAR 20 25-26 FUNDED BY SB 1: THE ROAD REPAI R AND
ACCOUNTABILITY ACT OF 2017

WHEREAS, Senate Bill 1 (SB 1), the Road Repair and Accountability Act of 2017 (Chapter 5, Statutes of 2017) was passed by the Legislature and Signed into law by the Governor in April 2017 in order to address the significant multi-modal transportation funding shortfalls statewide; and

WHEREAS, SB 1 includes accountability and transparency provisions that will ensure the residents of the City of Aliso Viejo are aware of the projects proposed for funding in our community and which projects have been completed each fiscal year; and

WHEREAS, the City of Aliso Viejo must adopt by resolution a list of all projects proposed to receive funding from the Road Maintenance and Rehabilitation Account (RMRA), created by SB 1, which must include a description and the location of each proposed project, a proposed schedule for the project’s completion, and the estimated useful life of the improvement; and

WHEREAS, the City of Aliso Viejo , will receive an estimated $1,358,908 in RMRA funding in Fiscal Year 2025-26 from SB 1; and

WHEREAS, this is the eighth year in which the City of Aliso Viejo is receiving SB 1 funding and will enable the City to continue essential road maintenance and rehabilitation projects, safety improvements, and increasing access and mobility options for the traveling public that would not have otherwise been possible without SB 1; and

WHEREAS, the City of Aliso Viejo used a Pavement Management System to develop the SB 1 project list to ensure revenues are being used on the most high -priority and cost-effective projects; and

WHEREAS, the funding from SB 1 will help the City of Aliso Viejo maintain and rehabilitate arterial, collector and/or local streets throughout the City this year as well as into the future; and

WHEREAS, the 2018 California Statewide Local Streets and Roads Needs Assessment found that the City of Aliso Viejo’s streets are in a Good condition and this revenue will help us increase the overall quality of our road system and over the next decade will maintain our streets and roads in a Good condition; and

WHEREAS, the SB 1 project list and overall investment in our local streets and roads infrastructure with a focus on basic maintenance and safety, investing in complete 119

streets infrastructure, and using cutting -edge technology, materials and practices, will have significant positive co-benefits statewide.

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

1. The foregoing recitals are true and correct.

2. The fiscal year 20 25-26 list of projects planned to be funded with Road Maintenance and Rehabilitation Account revenues include:

1. Slurry Seal FY 25-26 – Area 1 (Construction)

Description: Street patching, crack filling, slurry seal, pavement markings Estimated Construction Schedule: Start 03/26 – Completion 06/26 Estimated Useful Life: 5-10 years

2. Glenwood Drive Rehabilitation – SR-73 to Aliso Creek Road (Construction)

Description: Prepare construction documents for s treet patching, asphalt milling, asphalt overlay, utility structure adjustments , sidewalk improvements, pavement markings
Estimated Pre-Construction Schedule: Start 07/23 – Completion 05/25 Estimated Construction Schedule: Start 07/25 – Completion 12/25 Estimated Useful Life: 10-20 years

3. Cedarbrook Rehabilitation – Glenwood Drive to Aliso Viejo Parkway (Construction)

Description: Prepare construction documents for s treet patching, asphalt milling, asphalt overlay, utility structure adjustments , sidewalk improvements, pavement markings
Estimated Pre-Construction Schedule: Start 07/25 – Completion 09/25 Estimated Construction Schedule: Start 10/25 – Completion 12/25 Estimated Useful Life: 10-20 years

4. Aliso Viejo Parkway Rehabilitation – Enterprise to Aliso Creek Road (Construction)

Description: Prepare construction documents for s treet patching, asphalt milling, asphalt overlay, utility structure adjustments , sidewalk improvements, pavement markings
Estimated Pre-Construction Schedule: Start 07/24 – Completion 06/25 Estimated Construction Schedule: Start 07/25 – Completion 12/26 Estimated Useful Life: 10-20 years
120

5. Columbia and Argonaut Rehabilitation – Entire Streets (Design)

Description: Prepare construction documents for s treet patching, asphalt milling, asphalt overlay, utility structure adjustments , sidewalk improvements, pavement markings
Estimated Pre-Construction Schedule: Start 07/25 – Completion 06/26 Estimated Construction Schedule: Start 07/26 – Completion 12/26 Estimated Useful Life: 10-20 years

PASSED, APPROVED AND ADOPTED this 18th day of June, 2025.

__________________________
Tiffany Ackley
Mayor

APPROVED AS TO FORM: ATTEST:

__________________________ __________________________
Scott C. Smith, City Attorney Janet Martinez, City Clerk 121

STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.

CITY OF ALISO VIEJO )

I, JANET MARTINEZ, City Clerk of the City of Aliso Viejo, California, DO HEREBY CERTIFY that the foregoing is the original of Resolution No. 20 25-__ duly passed and adopted by the City Council of the City of Aliso Viejo at their r egular meeting held on the ___ day of _______, 2025, by the following roll call vote, to wit:

AYES:

NOES:

ABSENT:

___________________________

JANET MARTINEZ

CITY CLERK

(SEAL)

122
City of Aliso Viejo

AGENDA ITEM

DATE: June 18, 2025

TO: Mayor and City Council

FROM: Shaun Pelletier, City Engineer

SUBJECT: RENEWED MEASURE M ELIGIBILITY

Recommended Actions:

1. Adopt a 7-year Capital Improvements Program (CIP) for Street Projects; and

2. Adopt a Resolution of the City Council of the City of Aliso Viejo concerning the status of the Circulation Element and Mitigation Fee Program.

Fiscal Impact:

The City will receive approximately $7. 2 million in FY 202 5-26 through FY 2031-32 in Measure M2 Fair Share funds.

Background:

To maintain eligibility to receive Measure M2 sales tax revenue, the City is required to submit annual documentation on its transportation related programs to Orange County Transportation Authority (OCTA). Measure M2 Fair Share funds are made available to the City annually. Cities will be apportioned Measure M2 funds by applying a formula using population; miles of MPAH designated roadways, and taxable sales. The City has also applied for and received (or been awarded) about $2.3 million in competitive funds.

Every year, OCTA requires a submittal of the City’s programs and projects affecting circulation and transportation to verify that these elements are in alignment with Measure M2 and countywide plans. This year’s submittal requires the following documentation:

Measure M2 7-year Capital Improvement Program (7-year CIP)

The City’s 7-year CIP is a transportation planning and fiscal forecasting document used to guide future programming for transportation CIP projects. The 7-year CIP is consistent with the proposed citywide CIP Budget for FY 2025-26. The submittal of the 7 -year CIP does not commit the City to fund the identified improvements, but projects must be included in the 7-year CIP to be eligible to receive Measure M2 funding. This document 123

is updated every year to allow for changes based on maintenance needs or City Council priorities. The CIP emphasizes projects that improve circulation, mitigate traffic congestion, and maintain the City’s investment in existing transportation infrastructure.

Orange County Master Plan of Arterial Highway (MPAH) Consistency

The OCTA MPAH was established to provide planning, development, and preservation of a coordinated regional arterial highway network to supplement the countywide freeway system. Measure M2 funding eligibility requires that the City must biennially adopt and maintain a Circulation Element that is consistent with the OCTA MPAH by maintaining an equivalent number of minimum through lanes on each arterial highway shown on the MPAH map.

Mitigation Fee Program

The Mitigation Fee Program is a locally established fee program, which assesses fees used to mitigate the effects of new development on transportation infrastructure.

Biennially, the City must submit a City Council adopted resolution to OCTA certifying that the City has an existing mitigation fee program.

Discussion:

The proposed 7 -year CIP for streets is attached. The 7 -year CIP includes the City approved 5-year plan which emphasizes rehabilitation work such as slurry sealing and overlays to maintain the condition of the City’s street network. The proposed projects have been assigned to each year based upon priority rankings. Since the exact amount of the funds are not known, it is possible that some projects may not be completed in a given year, but it is important to list them to ensure Measure M fun ds can be utilized where appropriate. If projects are delayed due to funding, it is staff’s intention to still complete them in the priority ranking order.

The attached Council resolution states that the City’s Circulation Element is in conformance with the County’s MPAH and the resolution also reaffirms the City’s existing Mitigation Fee Program. The City’s mitigation fees are established development agreements and/or Conditions of Approval.

Environmental:

Each proposed project will include required environmental actions prior to commencing construction.

Attachments:

1. 7-Year CIP for Street Projects

2. Resolution
124

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Orange County Transportation Authority
FY 2025/26 - FY 2031/32 Capital Improvement Program
TIP ID CP-12600 IMPLEMENTING AGENCY Aliso Viejo, City of Local Project Number: Project Title
Additional Project IDs: ADA Curb Ramp Project - CDBG
Type of Work: Pedestrian Project Description
Type of Work Description: Pedestrian - Installation ofADA access ramps Install New Curb Ramps Limits
Citywide
Project Notes

FISCALYEAR FUND TYPE ENGROWCON/IMPO&MTOTAL TOTALESCALATED 2026 Community Development BlockGrant $0 $0 $250,000 $0 $250,000 $256,250 2026 Measure M2 Local Fairshare $0 $0 $65,000 $0 $65,000 $66,625 Totals: $0 $0 $315,000 $0 $315,000 $322,875
Last Revised: 25-00 - In Progress Total Programmed: $315,000 TIP ID CP-12606 IMPLEMENTING AGENCY Aliso Viejo, City of Local Project Number: Project Title
Additional Project IDs: Accessible Pedestrian Signals (APS) Upgrade - CDBG Type of Work: Traffic Signals Project Description
Type of Work Description: Traffic Signals - Install newtraffic signals and equipment Upgrading assessible pedestrian signals at various locations Limits
Citywide
Project Notes

FISCALYEAR FUND TYPE ENGROWCON/IMPO&MTOTAL TOTALESCALATED 2026 Measure M2 Local Fairshare $0 $0 $10,000 $0 $10,000 $10,250 2026 Community Development BlockGrant $0 $0 $185,000 $0 $185,000 $189,625 Totals: $0 $0 $195,000 $0 $195,000 $199,875
Last Revised: 25-00 - In Progress Total Programmed: $195,000 TIP ID CP-12392 IMPLEMENTING AGENCY Aliso Viejo, City of Local Project Number: Project Title
Additional Project IDs: Alicia Parkway TSSP
Type of Work: Traffic Signals Project Description
Type of Work Description: Traffic Signals - Coordinatesignals within project limits Aliso Viejo's portion of signal timing and equipment upgrades to Alicia Parkway Limits
Alicia Parkway from North City Limits to South CityLimits Project Notes
Project approved during 2024 CTFP call for projects.Laguna Niguel will act as lead agency.

FISCALYEAR FUND TYPE ENGROWCON/IMPO&MTOTAL TOTALESCALATED 2026 Traffic Signal Sync Program(TSSP) $0 $0 $215,226 $0 $215,226 $220,607 2026 General Fund $0 $0 $53,806 $0 $53,806 $55,151
Totals: $0 $0 $269,032 $0 $269,032 $275,758
Last Revised: 25-00 - In Progress Total Programmed: $269,032 TIP ID CP-12383 IMPLEMENTING AGENCY Aliso Viejo, City of Local Project Number: Project Title
Additional Project IDs: Aliso Viejo Parkway Rehabilitation from Enterprise to Aliso Creek Road Type of Work: Road Maintenance Project Description
Type of Work Description: Road Maintenance -Rehabilitation of roadway Rehabilitation of roadway including full depth replacement of failed areas, pavement grinding, and asphaltoverlay (3,300 lf) Limits
Aliso Viejo Parkway from Enterprise to Aliso Creek Road Project Notes

FISCALYEAR FUND TYPE ENGROWCON/IMP O&MTOTAL TOTALESCALATED 2026 Local Streets and Roadsapportionments $0 $0 $1,990,000 $0 $1,990,000 $2,039,750 2026 Measure M2 Local Fairshare $0 $0 $10,000 $0 $10,000 $10,250 Totals: $0 $0 $2,000,000 $0 $2,000,000 $2,050,000
Last Revised: 25-00 - In Progress Total Programmed: $2,000,000126 TIP ID CP-10003 IMPLEMENTING AGENCY Aliso Viejo, City of Local Project Number: Project Title
Additional Project IDs: Annual Slurry Seal Program
Type of Work: Road Maintenance Project Description
Type of Work Description: Road Maintenance - Slurryseal of roadway Annual program for slurry seal of roadways on residential streets. One fifth of the streets are sealed each year inaccordance with the Pavement Management System.

Limits
Citywide
Project Notes

FISCALYEAR FUND TYPE ENG ROWCON/IMP O&MTOTAL TOTALESCALATED 2026 Local Streets and Roadsapportionments $0 $0 $15,000 $0 $15,000 $15,375 2026 Measure M2 Local Fairshare $10,000 $0 $725,000 $0 $735,000 $753,125 2027 Measure M2 Local Fairshare $10,000 $0 $725,000 $0 $735,000 $771,703 2027 Local Streets and Roadsapportionments $0 $0 $15,000 $0 $15,000 $15,759 2028 Local Streets and Roadsapportionments $0 $0 $15,000 $0 $15,000 $16,153 2028 Measure M2 Local Fairshare $10,000 $0 $725,000 $0 $735,000 $790,746 2029 Measure M2 Local Fairshare $10,000 $0 $725,000 $0 $735,000 $810,264 2029 Local Streets and Roadsapportionments $0 $0 $15,000 $0 $15,000 $16,557 2030 Measure M2 Local Fairshare $10,000 $0 $725,000 $0 $735,000 $830,271 2030 Local Streets and Roadsapportionments $0 $0 $15,000 $0 $15,000 $16,971 2031 Measure M2 Local Fairshare $10,000 $0 $725,000 $0 $735,000 $850,778 2031 Local Streets and Roadsapportionments $0 $0 $15,000 $0 $15,000 $17,395 2032 Measure M2 Local Fairshare $10,000 $0 $725,000 $0 $735,000 $871,797 2032 Local Streets and Roadsapportionments $0 $0 $15,000 $0 $15,000 $17,830 Totals: $70,000 $0 $5,180,000 $0 $5,250,000 $5,794,724
Last Revised: 25-00 - In Progress Total Programmed: $5,250,000 TIP ID CP-12384 IMPLEMENTING AGENCY Aliso Viejo, City of Local Project Number: Project Title
Additional Project IDs: Argonaut Rehabilitation
Type of Work: Road Maintenance Project Description
Type of Work Description: Road Maintenance -Rehabilitation of roadway Rehabilitation of roadway including full depth replacement of failed areas, pavement grinding, and asphaltoverlay (3,300 lf) Limits
Argonaut between Argonaut and Argonaut and Argonautbetween Glenwood Drive and Aliso Creek Road Project Notes

FISCALYEAR FUND TYPE ENG ROWCON/IMPO&MTOTAL TOTALESCALATED 2026 Measure M2 Local Fairshare $15,000 $0 $0 $0 $15,000 $15,000 2027 Measure M2 Local Fairshare $0 $0 $40,000 $0 $40,000 $42,025 2027 Local Streets and Roadsapportionments $0 $0 $741,000 $0 $741,000 $778,513 Totals: $15,000 $0 $781,000 $0 $796,000 $835,538
Last Revised: 25-00 - In Progress Total Programmed: $796,000 TIP ID CP-12604 IMPLEMENTING AGENCY Aliso Viejo, City of Local Project Number: Project Title
Additional Project IDs: Arterial Slurry Seal and Bike Lane Improvement Project Type of Work: Road Maintenance Project Description
Type of Work Description: Road Maintenance -Rehabilitation of roadway Arterial Slurry Seal and Bike Lane Improvement Project Limits
Citywide
Project Notes
STBG Grant currently being applied for this project

FISCALYEAR FUND TYPE ENG ROWCON/IMP O&MTOTAL TOTALESCALATED 2026 Measure M2 Local Fairshare $90,000 $0 $0 $0 $90,000 $90,000 2026 Local Streets and Roadsapportionments $10,000 $0 $0 $0 $10,000 $10,000 2027 Measure M2 Local Fairshare $0 $0 $2,440,000 $0 $2,440,000 $2,563,525 2027 Surface Transportation BlockGrant (STBG) $0 $0 $350,000 $0 $350,000 $367,719 Totals: $100,000 $0 $2,790,000 $0 $2,890,000 $3,031,244 Last Revised: 25-00 - In Progress Total Programmed: $2,890,000 127
TIP ID CP-12607 IMPLEMENTING AGENCY Aliso Viejo, City of Local Project Number: Project Title
Additional Project IDs: Bike Lane Implementation
Type of Work: Bikeways Project Description
Type of Work Description: Bikeways -Reconstruction/rehabilitation of existing bike route Upgrade bike lane to incorporate buffered bike lanes and transition striping at conflict areas Limits
Citywide
Project Notes
Projected funded with AQMD AB2766.

FISCALYEAR FUND TYPE ENG ROWCON/IMP O&MTOTAL TOTALESCALATED 2026 Measure M2 Local Fairshare $0 $0 $10,000 $0 $10,000 $10,250 2026 Air Quality ManagementDistrict $50,000 $0 $1,250,000 $0 $1,300,000 $1,331,250 Totals: $50,000 $0 $1,260,000 $0 $1,310,000 $1,341,500
Last Revised: 25-00 - In Progress Total Programmed: $1,310,000 TIP ID CP-12601 IMPLEMENTING AGENCY Aliso Viejo, City of Local Project Number: Project Title
Additional Project IDs: Cedarbrook Rehabilitation Project between Glenwood and Aliso Viejo Parkway Type of Work: Road Maintenance Project Description
Type of Work Description: Road Maintenance -Rehabilitation of roadway Rehabilitation of roadway including full depth replacement of failed areas, pavement grinding, and asphaltoverlay (3,200 lf) Limits
Cedarbrook between Glenwood and Aliso Viejo Parkway
Project Notes

FISCALYEAR FUND TYPE ENGROWCON/IMP O&MTOTAL TOTALESCALATED 2026 Measure M2 Local Fairshare $0 $0 $1,075,000 $0 $1,075,000 $1,101,875 2026 Local Streets and Roadsapportionments $0 $0 $10,000 $0 $10,000 $10,250 Totals: $0 $0 $1,085,000 $0 $1,085,000 $1,112,125
Last Revised: 25-00 - In Progress Total Programmed: $1,085,000 TIP ID CP-12602 IMPLEMENTING AGENCY Aliso Viejo, City of Local Project Number: Project Title
Additional Project IDs: Citywide Bike Lane Study
Type of Work: Bikeways Project Description
Type of Work Description: Bikeways - Planning Plan and design bicycle facilities throughout the City Limits
Citywide
Project Notes
Other-SCAG grant being applied

FISCAL YEAR FUND TYPE ENG ROWCON/IMP O&MTOTAL TOTAL ESCALATED 2026 Measure M2 Local Fairshare $50,000 $0 $0 $0 $50,000 $50,000 2026 Other $200,000 $0 $0 $0 $200,000 $200,000
Totals: $250,000 $0 $0 $0 $250,000 $250,000
Last Revised: 25-00 - In Progress Total Programmed: $250,000 TIP ID CP-12385 IMPLEMENTING AGENCY Aliso Viejo, City of Local Project Number: Project Title
Additional Project IDs: Columbia Street Rehabilitation
Type of Work: Road Maintenance Project Description
Type of Work Description: Road Maintenance -Rehabilitation of roadway Rehabilitation of roadway including full depth replacement of failed areas, pavement grinding, and asphaltoverlay (3,600 lf) Limits
Columbia between Columbia and Columbia andColumbia between Aliso Creek Road and Aliso ViejoParkway Project Notes

FISCALYEAR FUND TYPE ENG ROWCON/IMPO&MTOTAL TOTALESCALATED 2026 Measure M2 Local Fairshare $15,000 $0 $0 $0 $15,000 $15,000 2027 Local Streets and Roadsapportionments $0 $0 $740,000 $0 $740,000 $777,462 2027 Measure M2 Local Fairshare $0 $0 $10,000 $0 $10,000 $10,506 Totals: $15,000 $0 $750,000 $0 $765,000 $802,968
Last Revised: 25-00 - In Progress Total Programmed: $765,000 128
TIP ID CP-10004 IMPLEMENTING AGENCY Aliso Viejo, City of Local Project Number: 14-ALSO-ECP-3728 Project Title
Additional Project IDs: Dairy Fork Wetland
Type of Work: Environmental Cleanup Project Description Type of Work Description: Environmental Cleanup -Constructed wetlands Maintenance of wetland to improve water quality of Dairy Fork sub-watershed.

Limits
Dairy Fork Tributary Outfall
Project Notes

FISCAL YEAR FUND TYPE ENG ROW CON/IMP O&M TOTAL TOTAL ESCALATED 2026 General Fund $0 $0 $0 $10,000 $10,000 $10,000
2027 General Fund $0 $0 $0 $10,000 $10,000 $10,000
2028 General Fund $0 $0 $0 $10,000 $10,000 $10,000
2029 General Fund $0 $0 $0 $10,000 $10,000 $10,000
2030 General Fund $0 $0 $0 $10,000 $10,000 $10,000
2031 General Fund $0 $0 $0 $10,000 $10,000 $10,000
2032 General Fund $0 $0 $0 $10,000 $10,000 $10,000
Totals: $0 $0 $0 $70,000 $70,000 $70,000
Last Revised: 25-00 - In Progress Total Programmed: $70,000 TIP ID CP-12603 IMPLEMENTING AGENCY Aliso Viejo, City of Local Project Number: Project Title
Additional Project IDs: Glenwood Rehab - SR73 to Aliso Creek Road Type of Work: Road Maintenance Project Description
Type of Work Description: Road Maintenance -Reconstruction of roadway Rehabilitation of roadway including full depth replacement of failed areas, pavement grinding, and asphaltoverlay (2,700 lf) Limits
Glenwood from 73 Freeway to Aliso Creek Road
Project Notes

FISCALYEAR FUND TYPE ENGROWCON/IMP O&MTOTAL TOTALESCALATED 2026 Local Streets and Roadsapportionments $0 $0 $1,200,000 $0 $1,200,000 $1,230,000 2026 Measure M2 Local Fairshare $0 $0 $330,000 $0 $330,000 $338,250 Totals: $0 $0 $1,530,000 $0 $1,530,000 $1,568,250
Last Revised: 25-00 - In Progress Total Programmed: $1,530,000 TIP ID CP-12605 IMPLEMENTING AGENCY Aliso Viejo, City of Local Project Number: Project Title
Additional Project IDs: Glenwood and Pacific Park Street Rehabilitation Project Type of Work: Road Maintenance Project Description
Type of Work Description: Road Maintenance -Reconstruction of roadway Rehabilitation of roadway including full depth replacement of failed areas, pavement grinding, and asphaltoverlay Limits
Glenwood Drive between Aliso Creek Road and theEast City Limit, and Pacific Park Drive betweenPeppertree/Chase and Aliso Viejo Parkway Project Notes
STBG Grant currently being applied for on this project.

FISCALYEAR FUND TYPE ENG ROWCON/IMP O&MTOTAL TOTALESCALATED 2026 Local Streets and Roadsapportionments $10,000 $0 $0 $0 $10,000 $10,000 2026 Measure M2 Local Fairshare $90,000 $0 $0 $0 $90,000 $90,000 2027 Surface Transportation BlockGrant (STBG) $0 $0 $4,440,000 $0 $4,440,000 $4,664,775 2027 Measure M2 Local Fairshare $0 $0 $580,000 $0 $580,000 $609,362 Totals: $100,000 $0 $5,020,000 $0 $5,120,000 $5,374,137 Last Revised: 25-00 - In Progress Total Programmed: $5,120,000 TIP ID CP-10014 IMPLEMENTING AGENCY Aliso Viejo, City of Local Project Number: 16-ALSO-ECP-3844 Project Title
Additional Project IDs: Stormwater Litter Control Project - Phase 4 Type of Work: Environmental Cleanup Project Description Type of Work Description: Environmental Cleanup -Catchment Retrofit Storm Water Pollution Project - This project will include installation of Bio Clean High Capacity Filter Inserts onstorm drain catch basins located on Public Streets within the City of Aliso Viejo. This is for maintenance of catchbasin filters.

Limits
Various catch basins throughout the City
Project Notes

FISCAL YEAR FUND TYPE ENG ROW CON/IMP O&M TOTAL TOTAL ESCALATED 2026 General Fund $0 $0 $0 $11,100 $11,100 $11,100
Totals: $0 $0 $0 $11,100 $11,100 $11,100
Last Revised: 25-00 - In Progress Total Programmed: $11,100129 TIP ID CP-10015 IMPLEMENTING AGENCY Aliso Viejo, City of Local Project Number: 17-ALSO-ECP-3878 Project Title
Additional Project IDs: Stormwater Litter Control Project - Phase 5 Type of Work: Environmental Cleanup Project Description Type of Work Description: Environmental Cleanup -Catchment Retrofit Storm Water Pollution Proj-This project will include installation of Bio Clean high Capacity Filter inserts on stormdrain catch basins located on Public Streets. ECP funding approved in 2017. This is for maintenance of catchbasin filters.

Limits
Various catch basins throughout the City
Project Notes

FISCAL YEAR FUND TYPE ENG ROW CON/IMP O&M TOTAL TOTAL ESCALATED 2026 General Fund $0 $0 $0 $7,000 $7,000 $7,000
2026 Gas Tax $0 $0 $0 $23,000 $23,000 $23,000
2027 Gas Tax $0 $0 $0 $23,000 $23,000 $23,000
2027 General Fund $0 $0 $0 $7,000 $7,000 $7,000
Totals: $0 $0 $0 $60,000 $60,000 $60,000
Last Revised: 25-00 - In Progress Total Programmed: $60,000 TIP ID CP-10016 IMPLEMENTING AGENCY Aliso Viejo, City of Local Project Number: Project Title
Additional Project IDs: Wood Canyon Wetland
Type of Work: Environmental Cleanup Project Description Type of Work Description: Environmental Cleanup -Constructed wetlands Maintenance of wetland to improve water quality in the Wood Canyon Wetland Limits
Wood Canyon Wetland
Project Notes
Project not funded through Project x. Includes roadwayrun-off treatment.

FISCAL YEAR FUND TYPE ENG ROW CON/IMP O&M TOTAL TOTAL ESCALATED 2026 General Fund $0 $0 $0 $10,000 $10,000 $10,000
2027 General Fund $0 $0 $0 $10,000 $10,000 $10,000
2028 General Fund $0 $0 $0 $10,000 $10,000 $10,000
2029 General Fund $0 $0 $0 $10,000 $10,000 $10,000
2030 General Fund $0 $0 $0 $10,000 $10,000 $10,000
2031 General Fund $0 $0 $0 $10,000 $10,000 $10,000
2032 General Fund $0 $0 $0 $10,000 $10,000 $10,000
Totals: $0 $0 $0 $70,000 $70,000 $70,000
Last Revised: 25-00 - In Progress Total Programmed: $70,000 130

RESOLUTION NO. 2025-____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ALISO

VIEJO, CALIFORNIA, CONCERNING THE STATUS AND UPDATE OF

THE CIRCULATION ELEMENT, AND MITIGATION FEE PROGRAM
FOR THE MEASURE M (M2) PROGRAM

WHEREAS, the City of Aliso Viejo desires to maintain and improve the streets within its jurisdiction, including those arterials contained in the Master Plan of Arterial Highways (MPAH); and

WHEREAS, the City of Aliso Viejo has endorsed a definition of and process for, determining consistency of the City’s Traffic Circulation Plan with the MPAH; and

WHEREAS, the City has adopted a General Plan Circulation Element which does not preclude implementation of the MPAH within its jurisdiction; and

WHEREAS, the City is required to adopt a resolution biennially informing the Orange County Transportation Authority (OCTA) that the City ’s Circulation Element is in conformance with the MPAH and whether any changes to any arterial highways of said Circulation Element have been adopted by the City during Fiscal Years (FY) 2023-24 and FY 2024-25; and

WHEREAS, the City is required to send biennially to the OCTA all recommended changes to the City Circulation Element and the MPAH for the purposes of re -qualifying for participation in the Comprehensive Transportation Funding Programs; and

WHEREAS, the City is required to adopt a resolution biennially certifying that the City has an existing Mitigation Fee Program that assesses traffic impacts of new development and requires new development to pay a fair share of necessary transportation improvements attributable to the new development.

NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL FOR THE CITY OF ALISO VIEJO, DOES HEREBY INFORM OCTA THAT:

a) The arterial highway portion of the Circulation Element of the City is in conformance with the MPAH.
b) The City attests that no unilateral reduction in through lanes has been made on any MPAH arterials during FY 2023-24 and FY 2024-25.
c) The City affirms that it will bring forward requests to amend the MPAH, when necessary, in order to ensure that the MPAH and the General Plan Circulation Element remain consistent.
d) The City reaffirms that the existing Mitigation Fee Program is in effect.

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PASSED, APPROVED AND ADOPTED this 18th day of June, 2025.

__________________________
Tiffany Ackley
Mayor

APPROVED AS TO FORM: ATTEST:

__________________________ __________________________
Scott C. Smith, City Attorney Janet Martinez, City Clerk

132

STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.

CITY OF ALISO VIEJO )

I, JANET MARTINEZ, City Clerk of the City of Aliso Viejo, Cal ifornia, DO HEREBY CERTIFY that the foregoing is the original of Resolution No. 202 5-__ duly passed and adopted by the City Council of the City of Aliso Viejo at their regular meeting held on the ___ day of _______, 2025, by the following roll call vote, to wit:

AYES:

NOES:

ABSENT:

___________________________

JANET MARTINEZ

CITY CLERK

(SEAL)
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City of Aliso Viejo

AGENDA ITEM

DATE: June 18, 2025

TO: Mayor and City Council

FROM: Shaun Pelletier, Public Works Director / City Engineer

SUBJECT: AGREEMENTS WITH RK ENGINEERING GROUP, INC. AND ADVANTEC CONSULTING ENGINEERS, INC. FOR ON-CALL TRAFFIC

ENGINEERING SERVICES
______________________________________________________________________

Recommended Actions:

1. Approve an agreement with RK E ngineering Group, Inc. to perform on-call traffic engineering services;

2. Approve an agreement with Advantec Consulting Engineers, Inc. to perform on -call traffic engineering services;

3. Authorize the City Manager to execute a professional services agreement with RK Engineering Group, Inc. for an amount not to exceed $225,000; and

4. Authorize the City Manager to execute a professional services agreement with Advantec Consulting Engineers, Inc. for an amount not to exceed $50,000.

Fiscal Impact:

The estimated cost for on-all traffic engineering services is $55,000 annually and funded with Special Revenue Funds, such as Gas Tax, Measure M, and SB1. An additional $60,000 in AQMD funds have also been included in the FY 2025-26 Capital Improvement Plan (CIP) budget for the design of bike lane improvements. The consultant fee for this work is budgeted in FY 2025-26 and will be included the FY 2026-27 and FY 2027-28 budgets accordingly. For development reviews, the developer will reimburse the City for actual time spent on each project.

Background:

The City utilizes the services o f on-call traffic engineering consultants for several traffic engineering related services, such as review of traffic studies, traffic calming analysis and design, and traffic data collection.

An RFP for on-call traffic engineering services was released on March 17, 2025, and was due on April 16, 2025. Seven firms submitted proposals and were ranked by a panel as follows:

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1. RK Engineering Group, Inc.

2. Advantec Consulting Engineers, Inc.

3. Hartzog and Crabill

4. Iteris

5. GTS

6. Minigar & Associates, Inc.

7. STC Traffic, Inc.

Staff reviewed the proposals for their ability to perform the service, ability to meet time requirements, reference checks, and reasonableness of cost.

Discussion:

Staff recommends approving two agreements for on -call traffic engineering services.

Engaging two firms enhances competitive pricing for each task order, ensures timely submission of deliverables, especially during peak periods when one firm may be unavailable, and mitigates potential conflicts of interest if a firm is representing another developer or jurisdiction on a given project.

RK Engineering Group, Inc. has been providing on-call traffic engineering services for the City for the past 15 years and has successfully completed several traffic engineering task orders for the City, including the Citywide traffic flow map update, Wood Canyon Drive and Hummingbird Lane traffic calming review , Citywide speed surveys, and the preparation of formal traffic calming guidelines, which will be presented at a future Council meeting.

Advantec Consult ant Engineers , Inc. has been providing on -call traffic engineering services for the City since 2020. They have provided technical support for bike lane improvements as well as grant writing assistance for the City.

Staff recommends RK Engineering Group, Inc. and Advantec Consultant Engineers, Inc. to perform on-call traffic engineering services for the City because of their current experience in providing such services for the City, as well as for several other cities in southern California including adjacent cities. RK Engineering Group, Inc. is currently on- call with the Cities of Laguna Niguel, Laguna Beach, Costa Mesa, Irvine, and Mission Viejo. Advantec Consultant Engineers, Inc. is currently on-call with the Cities of Mission Viejo, Huntington Beach, and Garden Grove.

The FY 2025-26 budget currently includes $35,000 to update the City’s speed limits as well as $20,000 for miscellaneous traffic studies such as requests for traffic calming, stop signs, etc. Additionally, RK Engineering Group, Inc. has provided a proposal of $60,000 to design bike lane improvements throughout the City, which is included in the FY 2025- 26 CIP budget.

The on -call agreement s guarantee that qualified firms are readil y available to deliver services as needed, minimizing delays in consultant procurement when a swift turnaround 135

is critical. Before any work commences, the City must authorize the project, confirm budget availability, and ensure that deposit accounts are ap propriately funded. If development activity experiences a surge during the initial three -year term, additional appropriation requests will be submitted as needed. The initial term of the agreements will be from July 1, 20 25, through June 30, 2028. The City has the option to renew the agreements for two (2) additional one-year terms.

Attachments:

1. Agreement with RK Engineering Group, Inc.

2. Agreement with Advantec Consulting Engineers, Inc.

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CITY OF ALISO VIEJO

PROFESSIONAL SERVICES AGREEMENT
FOR

ON-CALL TRAFFIC ENGINEERING SERVICES

1. PARTIES AND DATE.

This Agreement is made and entered into this day of , 2025, by and between the City of Aliso Viejo, a municipal corporation organized under the laws of the State of California with its principal place of business at 12 Journey, Suite 100, Aliso Viejo, California 92656 (“City”) and RK Engineering Group, Inc. , a corporation, with its principal place of business at 1401 Dove Street, Suite 540, Newport Beach, CA 92660 (“Consultant”).

City and Consultant are sometimes individually referred to herein as “Party” and collectively as “Parties.”

2. RECITALS.

2.1 Consultant.

Consultant desires to perform and assume responsibility for the provision of professional consultant services required by the City on the terms and conditions set forth in this Agreement.

Consultant represents that it is experienced in providing professional consultant services to public clients, is licensed in the State of California, and is familiar with the plans of City.

2.2 Project.

City desires to engage Consultant to render such services for On-Call Traffic Engineering Services (“Project”) as set forth in this Agreement.

3. TERMS.

3.1 Scope of Services and Term.

3.1.1 General Scope of Services. Consultant promises and agrees to furnish to the City all labor, materials, tools, equipment, services, and incidental and customary work necessary to fully and adequately supply the professional consultant services necessary for the Project (“Services”). The Services are more particularly described in Exhibit “A” attached hereto and incorporated herein by reference. All Services shall be subject to, and performed in accordance with, this Agreement, the exhibits attached hereto and incorporated herein by reference, and all applicable local, state and federal laws, rules and regulations.

3.1.2 Term. The term of this Agreement shall be from July 1, 2025 to June 30, 2028, unless earlier terminated as provided herein. The City Manager shall have the unilateral option, at its sole discretion, to renew this Agreement annually for no more than tw o additional one-year terms. Consultant shall complete the Services within the term of this Agreement, and shall meet any other established schedules and deadlines.

3.2 Responsibilities of Consultant.
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3.2.1 Control and Payment of Subordinates; Independent Contractor . The Services shall be performed by Consultant or under its supervision. Consultant will determine the means, methods and details of performing the Services subject to the requirements of this Agreement. City retains Consultant on an independent contractor basis and not as an employee.

Consultant shall complete, execute, and submit to City a Request for Taxpayer Identification Number and Certification (IRS FormW -9) prior to commencement of any Services under this Agreement. Neither City, nor any of its officials, officers, directors, employees or agents shall have control over the conduct of Consultant or any of Consultant's officers, employees, or agents, except as set forth in this Agreement. Consultant retains the right to perform similar or different services for others during the term of this Agreement. Any additional personnel performing the Services under this Agreement on behalf of Consultant shall also not be employees of City and shall at all times be under Consultant’s exclusive direction and control.

Consultant shall pay all wages, salaries, and other amounts due such personnel in connection with their performance of Services under this Agreement and as required by law. Consultant shall be responsible for all reports and obligations respecting such additional personnel, including, but not limited to: social security taxes, income tax withholding, unemployment insurance, disability insurance, and workers’ compensation insurance.

3.2.2 Schedule of Services.

3.2.2.1 Consultant shall perform the Services expeditiously, within the term of this Agreement, and in accordance with the Schedule of Services set forth in Exhibit “B” attached hereto and incorporated herein by reference. Consultant represents that it has the professional and technical personnel required to perform the Services in conformance with such conditions. In order to facilitate Consultant’s conformance with the Schedule, City shall respond to Consultant’s submittals in a timely manner. Upon request of City, Consultant shall provide a more detailed schedule of anticipated performance to meet the Schedule of Services.

3.2.2.2 Neither City nor Consultant shall be considered in default of this Agreement for delays in performance caused by circumstances beyond the reasonable control of the non- performing Party. For purposes of this Agreement, such circumstances include a Force Majeure Event. A Force Majeure Event shall mean an event that materially affects a Party’s performance and is one or more of the following: (1) Acts of God or other natural disasters; (2) terrorism or other acts of a public enemy; (3) orders of governmental authorities (including, without limitation, unreasonable and unforeseeable delay in the issuance of permits or approvals by governmental authorities that are required for the Services); (4) strikes and other organized labor action occurring at the site and the effects thereof on the Services, only to the extent such strikes and other organized labor action are beyond the control of Consultant and its subcontractors, and to the extent the effects thereof cannot be avoided by use of replacement workers; and (5) pandemics, epidemics or quarantine restrictions. For purposes of this section, “orders of governmental authorities,” includes ordinances, emergency proclamations and orders, rules to protect the public health, welfare and safety, and other actions of a public agency applicable to the Services and Agreement.

3.2.2.3 Should a Force Majeure Event occur, the non- performing Party shall, within a reasonable time of being prevented from performing, give written notice to the other Party describing the circumstances preventing continued performance and the efforts being 138
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made to resume performance of this Agreement. Force Majeure Events and/or delays, regardless of the Party responsible for the delay, shall not entitle Consultant to any additional compensation. Notwithstanding the foregoing in this section, the City may still terminate this Agreement in accordance with the termination provisions of this Agreement.

3.2.3 Conformance to Applicable Requirements . All work prepared by Consultant shall be subject to the approval of City.

3.2.4 Substitution of Key Personnel . Consultant has represented to City that certain key personnel will perform and coordinate the Services under this Agreement. Should one or more of such personnel become unavailable, Consultant may substitute other personnel of at least equal competence upon written approval of City. In the event that City and Consultant cannot agree as to the substitution of key personnel, City shall be entitled to terminate this Agreement for cause. As discussed below, any personnel who fail or refuse to perform the Services in a manner acceptable to the City, or who are determined by the City to be uncooperative, incompetent, a threat to the adequate or timely completion of the Project or a threat to the safety of persons or property, shall be promptly removed from the Project by the Consultant at the request of the City. The key personnel for performance of this Agreement are as follows: Rogier Goedeke.

3.2.5 City’s Representative. The City hereby designates the City Manager, or his or her designee, to act as its representative for the performance of this Agreement (“City’s Representative”). City’s Representative shall have the power to act on behalf of the City for all purposes under this Contract. The City Manager hereby designates Public Works Director/City Engineer, or his or her designee, as the City’s contact for the implementation of the Services hereunder. Consultant shall not accept direction or orders from any person other than the City’s Representative or his or her designee.

3.2.6 Consultant’s Representative . Consultant hereby designates Rogier Goedecke, or his or her designee, to act as its representative for the performance of this Agreement (“Consultant’s Representative”). Consultant’s Representative shall have full authority to represent and act on behalf of the Consultant for all purposes under this Agreement.

The Consultant’s Representative shall supervise and direct the Services, using his best skill and attention, and shall be responsible for all means, methods, techniques, sequences and procedures and for the satisfactory coordination of all portions of the Services under this Agreement.

3.2.7 Coordination of Services . Consultant agrees to work closely with City staff in the performance of Services and shall be available to City’s staff, consultants and other staff at all reasonable times.

3.2.8 Standard of Care; Performance of Employees . Consultant shall perform all Services under this Agreement in a skillful and competent manner, consistent with the standards generally recognized as being employed by professionals in the same discipline in the State of California. Consultant represents and maintains that it is skilled in the professional calling necessary to perform the Services. Consultant warrants that all employees and subconsultants shall have sufficient skill and experience to perform the Services assigned to them. Consultant represents and maintains that all employees and subconsultants have 139
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undergone workplace harassment training and completed criminal background checks with no felony or misdemeanor violations within 5 years prior to performance of the Services. Finally, Consultant represents that it, its employees and subconsultants have all licenses, permits, qualifications and approvals of whatever nature that are legally required to perform the Services and that such licenses and approvals shall be maintained throughout the term of this Agreement.

As provided for in the indemnification provisions of this Agreement, Consultant shall perform, at its own cost and expense and without reimbursement from the City, any services necessary to correct errors or omissions which are caused by the Consultant’s failure to comply with the standard of care provided for herein. Any employee of the Consultant or its sub- consultants who is determined by the City to be uncooperative, incompetent, a threat to the adequate or timely completion of the Project, a threat to the safety of persons or property, or any employee who fails or refuses to perform the Services in a manner acceptable to the City, shall be promptly removed from the Project by the Consultant and shall not be re -employed to perform any of the Services or to work on the Project.

3.2.9 Laws and Regulations . Consultant shall keep itself fully informed of and in compliance with all local, state and federal laws, rules and regulations in any manner affecting the performance of the Project or the Services, including all Cal/OSHA requirements, and shall give all notices required by law. Consultant shall be liable for all violations of such laws and regulations in connection with Services. If the Consultant performs any work knowing it to be contrary to s uch laws, rules and regulations , Consultant shall be solely responsible for all costs arising therefrom. Consultant shall defend, indemnify and hold City, its officials, directors, officers, employees and agents free and harmless, pursuant to the indemnification provisions of this Agreement, from any claim or liability arising out of any failure or alleged failure to comply with such laws, rules or regulations.

3.2.10 Insurance.

3.2.10.1 Time for Compliance . Consultant shall not commence Work under this Agreement until it has provided evidence satisfactory to the City that it has secured all insurance required under this section. In addition, Consultant shall not allow any subconsultant to commence work on any subcontract until it has provided evidence satisfactory to the City that the subconsultant has secured all insurance required under this section.

3.2.10.2 Types of Insurance Required . As a condition precedent to the effectiveness of this Agreement for work to be performed hereunder and without limiting the indemnity provisions of the Agreement, the Consultant in partial performance of its obligations under such Agreement, shall procure and maintain in full force and effect during the term of the Agreement, the following policies of insurance. If the existing policies do not meet the Insurance Requirements set forth herein, Consultant agrees to amend, supplement or endorse the policies to do so.
(a) Commercial General Liability: Commercial General Liability Insurance which affords coverage at least as broad as Insurance Services Office “occurrence” form CG 0001, with minimum limits of at least $1,000,000 per occurrence, and if written with an 140
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aggregate, the aggregate shall be double the per occurrence limit.

Defense costs shall be paid in addition to the limits.

The policy shall contain no endorsements or provisions limiting coverage for (1) contractual liability; (2) cross liability exclusion for claims or suits by one insured against another; or (3) contain any other exclusion contrary to the Agreement.
(b) Automobile Liability Insurance: Automobile Liability Insurance with coverage at least as broad as Insurance Services Office Form CA 0001 covering “Any Auto” (Symbol 1) with minimum limits of $1,000,000 each accident.
(c) Contractors Pollution Liability: (if necessary)
Contractors Pollution Liability Insurance covering all of the contractor’s operations to include onsite and offsite coverage for bodily injury (including death and mental anguish), property damage, defense costs and cleanup costs with minimum limits of $5 million per loss and $10 million total all losses. The policy shall contain no endorsements or provisions limiting contractual liability or coverage for cross liability of claims or suits by one insured against another.

If coverage is written on a claims- made basis, the retroactive date shall precede the effective date of the initial Agreement and continuous coverage will be maintained or an extended reporting period will be exercised for a period of at least three (3) years from termination or expiration of this Agreement.
(d) Professional Liability: Professional Liability insurance with minimum limits of $1,000,000. Covered professional services shall specifically include all work to be performed under the Agreement and delete any exclusions that may potentially affect the work to be performed (for example, any exclusions relating to lead, asbestos, pollution, testing, underground storage tanks, laboratory analysis, soil work, etc.).

If coverage is written on a claims- made basis, the retroactive date shall precede the effective date of the initial Agreement and continuous coverage will be maintained or an extended reporting period will be exercised for a period of at least three (3) years from termination or expiration of this Agreement.
(e) Workers’ Compensation: Workers’ Compensation Insurance, as required by the State of California and Employer’s Liability Insurance with a limit of not less than $1,000,000 per accident for bodily injury and disease.
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3.2.10.3 Endorsements. Required insurance policies shall not be in compliance if they include any limiting provision or endorsement that has not been submitted to the City for approval.
(a) The policy or policies of insurance required by Section 3.2.10.2 (a) Commercial General Liability and (c) Contractor’s Pollution Liability shall be endorsed to provide the following:
(1) Additional Insured: The City of Aliso Viejo , its officials, officers, employees, agents, and volunteers shall be
additional insureds with regard to liability and defense of suits or claims arising out of the performance of the
Agreement.

Additional Insured Endorsements shall not (1) be restricted to “ongoing operations”; (2) exclude “contractual liability”; (3) restrict coverage to “sole” liability of Consultant; or (4) contain any other exclusions contrary to the Agreement. (2) Cancellation: Required insurance policies shall not be canceled or the coverage reduced until a thirty (30) day written notice of cancellation has been served upon the City except ten (10) days shall be allowed for non- payment of premium.
(b) The policy or policies of insurance required by Section 3.2.10.2 (b) Automobile Liability and (d) Professional Liability shall be endorsed to provide the following:
(1) Cancellation: Required insurance policies shall not be canceled or the coverage reduced until a thirty (30) day written notice of cancellation has been served upon the City except ten (10) days shall be allowed for non- payment of premium.
(c) The policy or policies of insurance required by Section 3.2.10.2 (e) Workers’ Compensation shall be endorsed to provide the
following:
(1) Waiver of Subrogation: A waiver of subrogation stating that the insurer waives all rights of subrogation against the indemnified parties.
(2) Cancellation: Required insurance policies shall not be canceled or the coverage reduced until a thirty (30) day written notice of cancellation has been served upon the City except ten (10) days shall be allowed for non- payment of premium.
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3.2.10.4 Primary and Non -Contributing Insurance . All insurance coverages shall be primary and any other insurance, deductible, or self -insurance maintained by the indemnified parties shall not contribute with this primary insurance. Policies shall contain or be endorsed to contain such provisions.

3.2.10.5 Waiver of Subrogation. Required insurance coverages shall not prohibit Consultant from waiving the right of subrogation prior to a loss. Consultant shall waive all subrogation rights against the indemnified parties. Policies shall contain or be endorsed to contain such provisions.

3.2.10.6 Deductible. Any deductible or self -insured retention must be approved in writing by the City and shall protect the indemnified parties in the same manner and to the same extent as they would have been protected had the policy or policies not contained a deductible or self-insured retention.

3.2.10.7 Evidence of Insurance . The Consultant, concurrently with the execution of the Agreement, and as a condition precedent to the effectiveness thereof, shall deliver either certified copies of the required policies, or original certificates and endorsements on forms approved by the City. The certificates and endorsements for each insurance policy shall be signed by a person authorized by that insurer to bind coverage on its behalf. At least fifteen (15 days) prior to the expiration of any such policy, evidence of insurance showing that such insurance coverage has been renewed or extended shall be filed with the City. If such coverage is cancelled or reduced, Consultant shall, within ten (10) days after receipt of written notice of such cancellation or reduction of coverage, file with the City evidence of insurance showing that the required insurance has been reinstated or has been provided through another insurance company or companies.

3.2.10.8 Failure to Maintain Coverage . Consultant agrees to suspend and cease all operations hereunder during such period of time as the required insurance coverage is not in effect and evidence of insurance has not been furnished to the City. The City shall have the right to withhold any payment due Consultant until Consultant has fully complied with the insurance provisions of this Agreement.

In the event that the Consultant’s operations are suspended for failure to maintain required insurance coverage, the Consultant shall not be entitled to an extension of time for completion of the Services because of production lost during suspension.

3.2.10.9 Acceptability of Insurers . Each such policy shall be from a company or companies with a current A.M. Best’s rating of no less than A:VII and authorized to do business in the State of California, or otherwise allowed to place insurance through surplus line brokers under applicable provisions of the California Insurance Code or any federal law.

3.2.10.10 Insurance for Subconsultants . All Subconsultants shall be included as additional insureds under the Consultant’s policies, or the Consultant shall be responsible for causing Subconsultants to purchase the appropriate insurance in compliance with the terms of these Insurance Requirements, including adding the City as an Additional Insured to the Subconsultant’s policies.
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3.2.11 Safety. Consultant shall execute and maintain its work so as to avoid injury or damage to any person or property. In carrying out its Services, the Consultant shall at all times be in compliance with all applicable local, state and federal laws, rules and regulations, and shall exercise all necessary precautions for the safety of employees appropriate to the nature of the work and the conditions under which the work is to be performed. Safety precautions where applicable shall include, but shall not be limited to: (A) adequate life protection and life saving equipment and procedures; (B) instructions in accident prevention for all employees and subconsultants, such as safe walkways, scaffolds, fall protection ladders, bridges, gang planks, confined space procedures, trenching and shoring, equipment and other safety devices, equipment and wearing apparel as are necessary or lawfully required to prevent accidents or injuries; and (C) adequate facilities for the proper inspection and maintenance of all safety measures.

3.3 Fees and Payments.

3.3.1 Compensation. Consultant shall receive compensation, including authorized reimbursements, for all Services rendered under this Agreement at the rates set forth in Exhibit “C” attached hereto and incorporated herein by reference. The total compensation shall not exceed Two Hundred Twenty Five Thousand DOLLARS ($225,000.00) (“Total Compensation”) without written approval of City’s City Manager . Extra Work may be authorized, as described below, and if authorized, will be compensated at the rates and manner set forth in this Agreement.

3.3.2 Payment of Compensation.

Consultant shall submit to City a monthly itemized statement which indicates work completed and hours of Services rendered by Consultant. The statement shall describe the amount of Services and supplies provided since the initial commencement date, or since the start of the subsequent billing periods, as appropriate, through the date of the statement. City shall, within 45 days of receiving such statement, review the statement and pay all non- disputed and approved charges thereon.

3.3.3 Reimbursement for Expenses. Consultant shall not be reimbursed for any expenses unless authorized in writing by City.

3.3.4 Extra Work . At any time during the term of this Agreement, City may request that Consultant perform Extra Work. As used herein, “Extra Work” means any work which is determined by City to be necessary for the proper completion of the Project, but which the Parties did not reasonably anticipate would be necessary at the execution of this Agreement.

Consultant shall not perform, nor be compensated for, Extra Work without written authorization from the City.

3.3.5 Prevailing Wages; DIR Registration.

3.3.5.1 Consultant is aware of the requirements of California Labor Code Section 1720, et seq., and 1770, et seq., as well as California Code of Regulations, Title 8, Section 16000, et seq., (“Prevailing Wage Laws”), which require the payment of prevailing wage rates and the performance of other requirements on “public works” and “maintenance” projects. 144
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If the Services are being performed as part of an applicable “public works” or “maintenance” project, as defined by the Prevailing Wage Laws, and if the total compensation is $1,000 or more, Consultant agrees to fully comply with such Prevailing Wage Laws. City shall provide Consultant with a copy of the prevailing rates of per diem wages in effect at the commencement of this Agreement. Consultant shall make copies of the prevailing rates of per diem wages for each craft, classification or type of worker needed to execute the Services available to interested parties upon request, and shall post copies at the Consultant’s principal place of business and at the project site. It is the intent of the parties to effectuate the requirements of sections 1771, 1774, 1775, 1776, 1777.5, 1813, and 1815 of the Labor Code within this Agreement, and Consultant shall therefore comply with such Labor Code sections to the fullest extent required by law. Consultant shall defend, indemnify and hold the City, its elected officials, officers, employees and agents free and harmless from any claim or liability arising out of any failure or alleged failure to comply with the Prevailing Wage Laws.

3.3.5.2 If the Services are being performed as part of an applicable “public works” or “maintenance” project, in addition to the foregoing, then pursuant to Labor Code sections 1725.5 and 1771.1, the Consultant and all subconsultants must be registered with the Department of Industrial Relations (“DIR”). Consultant shall maintain registration for the duration of the project and require the same of any subconsultants. This project may also be subject to compliance monitoring and enforcement by the DIR. It shall be Contractor’s sole responsibility to comply with all applicable registration and labor compliance requirements, including the submission of payroll records directly to the DIR.

3.4 Accounting Records.

3.4.1 Maintenance and Inspection. Consultant shall maintain complete and accurate records with respect to all costs and expenses incurred under this Agreement. All such records shall be clearly identifiable. Consultant shall allow a representative of City during normal business hours to examine, audit, and make transcripts or copies of such records and any other documents created pursuant to this Agreement. Consultant shall allow inspection of all work, data, documents, proceedings, and activities related to the Agreement for a period of three (3) years from the date of final payment under this Agreement.

3.5 General Provisions.

3.5.1 Termination of Agreement.

3.5.1.1 Grounds for Termination. City may, by written notice to Consultant, terminate the whole or any part of this Agreement at any time and without cause by giving written notice to Consultant of such termination, and specifying the effective date thereof, at least seven (7) days before the effective date of such termination. Upon termination, Consultant shall be compensated only for those services which have been adequately rendered to City, and Consultant shall be entitled to no further compensation. Consultant may not terminate this Agreement except for cause. The rights and remedies of the City provided in this section shall not be exclusive and are in addition to any other rights and remedies provided by law, equity or under this Agreement.
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3.5.1.2 Effect of Termination . If this Agreement is terminated as provided herein, City may require Consultant to provide all finished or unfinished Documents and Data and other information of any kind prepared by Consultant in connection with the performance of Services under this Agreement. Consultant shall be required to provide such document and other information within fifteen (15) days of the request.

3.5.1.3 Additional Services. In the event this Agreement is terminated in whole or in part as provided herein, City may procure, upon such terms and in such manner as it may determine appropriate, services similar to those terminated.

3.5.2 Delivery of Notices . All notices permitted or required under this Agreement shall be given to the respective parties at the following address, or at such other address as the respective parties may provide in writing for this purpose:

Consultant:

RK Engineering Group,
1401 Dove Street, Suite 540
Newport Beach, CA 92660
City:

City of Aliso Viejo
12 Journey, Suite 100
Aliso Viejo, CA 92656
Attn: Shaun Pelletier, Public Works Department
Such notice shall be deemed made when personally delivered or when mailed, forty- eight (48) hours after deposit in the U.S. Mail, first class postage prepaid and addressed to the party at its applicable address. Actual notice shall be deemed adequate notice on the date actual notice occurred, regardless of the method of service.

3.5.3 Ownership of Materials and Confidentiality.

3.5.3.1 Documents & Data; Licensing of Intellectual Property . This Agreement creates a non-exclusive and perpetual license for City to copy, use, modify, reuse, or sublicense any and all copyrights, designs, and other intellectual property embodied in plans, specifications, studies, drawings, estimates, and other documents or works of authorship fixed in any tangible medium of expression, including but not limited to, physical drawings or data magnetically or otherwise recorded on computer diskettes, which are prepared or caused to be prepared by Consultant under this Agreement (“Documents & Data”). Consultant shall require all subconsultants to agree in writing that City is granted a non -exclusive and perpetual license for any Documents & Data the subconsultant prepares under this Agreement. Consultant represents and warrants that Consultant has the legal right to license any and all Documents & Data. Consultant makes no such representation and warranty in regard to Documents & Data which were prepared by design professionals other than Consultant or provided to Consultant by the City. City shall not be limited in any way in its use of the Documents and Data at any time, provided that any such use not within the purposes intended by this Agreement shall be at City’s sole risk.
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3.5.3.2 Confidentiality. All ideas, memoranda, specifications, plans, procedures, drawings, descriptions, computer program data, input record data, written information, and other Documents and Data either created by or provided to Consultant in connection with the performance of this Agreement shall be held confidential by Consultant.

Such materials shall not, without the prior written consent of City, be used by Consultant for any purposes other than the performance of the Services. Nor shall such materials be disclosed to any person or entity not connected with the performance of the Services or the Project. Nothing furnished to Consultant which is otherwise known to Consultant or is generally known, or has become known, to the related industry shall be deemed confidential. Consultant shall not use City’s name or insignia, photographs of the Project, or any publicity pertaining to the Services or the Project in any magazine, trade paper, newspaper, television or radio production or other similar medium without the prior written consent of City.

3.5.3.3 Confidential Information. The City shall refrain from releasing Consultant’s proprietary information (“Proprietary Information”) unless the City’s legal counsel determines that the release of the Proprietary Information is required by the California Public Records Act or other applicable state or federal law, or order of a court of competent jurisdiction, in which case the City shall notify Consultant of its intention to release Proprietary Information.

Consultant shall have five (5) working days after receipt of the Release Notice to give City written notice of Consultant’s objection to the City’s release of Proprietary Information.

Consultant shall indemnify, defend and hold harmless the City, and its officers, directors, employees, and agents from and against all liability, loss, cost or expense (including attorney’s fees) arising out of a legal action brought to compel the release of Proprietary Information. City shall not release the Proprietary Information after receipt of the Objection Notice unless either:
(1) Consultant fails to fully indemnify, defend (with City’s choice of legal counsel), and hold City harmless from any legal action brought to compel such release; and/or (2) a final and non- appealable order by a court of competent jurisdiction requires that City release such information.

3.5.4 Fraud Policy. Consultant shall provide a copy of the City’s Fraud Prevention Policy to each of its employees assigned to perform Services under this Agreement.

Consultant shall submit to the City a statement signed by an authorized representative for Consultant certifying receipt of the City’s Fraud Prevention Policy. A finding by the City that any of Consultant’s employees have committed fraud against the City or have violated the City’s Fraud Prevention Policy shall be grounds for appropriate discipline, up to and including such employee’s removal from performance of this Agreement at City’s request and/or termination of this Agreement. Consultant shall reimburse the City for any costs and expenses associated with fraud against the City.

3.5.5 Cooperation; Further Acts . The Parties shall fully cooperate with one another, and shall take any additional acts or sign any additional documents as may be necessary, appropriate or convenient to attain the purposes of this Agreement.

3.5.6 Attorney’s Fees. If either party commences an action against the other party, either legal, administrative or otherwise, arising out of or in connection with this Agreement, the prevailing party in such litigation shall be entitled to have and recover from the losing party reasonable attorney’s fees and all other costs of such action. 147
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3.5.7 Indemnification.

3.5.7.1 To the fullest extent permitted by law, Consultant shall defend (with counsel of City’s choosing), indemnify and hold the City, its officials, officers, employees, volunteers and agents free and harmless from any and all claims, demands, causes of action, costs, expenses, liability, loss, damage or injury of any kind, in law or equity, to property or persons, including wrongful death, in any manner arising out of, pertaining to, or incident to any alleged acts, errors or omissions, or willful misconduct of Consultant, its officials, officers, employees, subcontractors, consultants or agents in connection with the performance of the Consultant's Services, the Project or this Agreement, including without limitation the payment of all damages, expert witness fees and attorneys fees and other related costs and expenses except such loss or damage caused by the sole negligence or willful misconduct of the City .

Consultant's obligation to indemnify shall survive expiration or termination of this Agreement and shall not be restricted to insurance proceeds, if any, received by the Consultant or the City, its officials, officers, employees, agents or volunteers.

3.5.7.2 If Consultant’s obligation to defend, indemnify, and/or hold harmless arises out of Consultant’s performance as a “design professional” (as that term is defined under Civil Code section 2782.8), then, and only to the extent required by Civil Code section 2782.8, which is fully incorporated herein, Consultant’s indemnification obligation shall be limited to claims that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Consultant, and, upon Consultant obtaining a final adjudication by a court of competent jurisdiction, Consultant’s liability for such claim, including the cost to defend, shall not exceed the Consultant’s proportionate percentage of fault.

3.5.8 Entire Agreement. This Agreement contains the entire Agreement of the parties with respect to the subject matter hereof, and supersedes all prior negotiations, understandings or agreements. This Agreement may only be modified by a writing signed by both parties.

3.5.9 Governing Law . This Agreement shall be governed by the laws of the State of California. Venue shall be in Orange County.

3.5.10 Time of Essence. Time is of the essence for each and every provision of this Agreement.

3.6 City’s Right to Employ Other Consultants. City reserves right to employ other consultants in connection with this Project.

3.7 Successors and Assigns. This Agreement shall be binding on the successors and assigns of the parties.

3.8 Assignment or Transfer. Consultant shall not assign, hypothecate, or transfer, either directly or by operation of law, this Agreement or any interest herein without the prior written consent of the City. Any attempt to do so shall be null and void, and any assignees, hypothecates or transferees shall acquire no right or interest by reason of such attempted assignment, hypothecation or transfer.
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3.9 Construction; References; Captions. Since the Parties or their agents have participated fully in the preparation of this Agreement, the language of this Agreement shall be construed simply, according to its fair meaning, and not strictly for or against any Party. Any term referencing time, days or period for performance shall be deemed calendar days and not work days. All references to Consultant include all personnel, employees, agents, and subconsultants of Consultant, except as otherwise specified in this Agreement. All references to City include its elected officials, officers, employees, agents, and volunteers except as otherwise specified in this Agreement. The captions of the various articles and paragraphs are for convenience and ease of reference only, and do not define, limit, augment, or describe the scope, content, or intent of this Agreement.

3.10 Amendment; Modification. No supplement, modification, or amendment of this Agreement shall be binding unless executed in writing and signed by both Parties.

3.11 Waiver. No waiver of any default shall constitute a waiver of any other default or breach, whether of the same or other covenant or condition. No waiver, benefit, privilege, or service voluntarily given or performed by a Party shall give the other Party any contractual rights by custom, estoppel, or otherwise.

3.12 No Third Party Beneficiaries. There are no intended third party beneficiaries of any right or obligation assumed by the Parties.

3.13 Invalidity; Severability . If any portion of this Agreement is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect.

3.14 Prohibited Interests. Consultant maintains and warrants that it has not employed nor retained any company or person, other than a bona fide employee working solely for Consultant, to solicit or secure this Agreement. Further, Consultant warrants that it has not paid nor has it agreed to pay any company or person, other than a bona fide employee working solely for Consultant, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. For breach or violation of this warranty, City shall have the right to rescind this Agreement without liability.

For the term of this Agreement, no member, officer or employee of City, during the term of his or her service with City, shall have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom.

3.15 Equal Opportunity Employment . Consultant represents that it is an equal opportunity employer and it shall not discriminate against any subconsultant, employee or applicant for employment because of race, religion, color, national origin, handicap, ancestry, sex or age. Such non- discrimination shall include, but not be limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination. Consultant shall also comply with all relevant provisions of City’s Minority Business Enterprise program, Affirmative Action Plan or other related programs or guidelines currently in effect or hereinafter enacted.
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3.16 Labor Certification . By its signature hereunder, Consultant certifies that it is aware of the provisions of Section 3700 of the California Labor Code which require every employer to be insured against liability for Worker’s Compensation or to undertake self- insurance in accordance with the provisions of that Code, and agrees to comply with such provisions before commencing the performance of the Services.

3.17 Authority to Enter Agreement. Consultant has all requisite power and authority to conduct its business and to execute, deliver, and perform the Agreement. Each Party warrants that the individuals who have signed this Agreement have the legal power, right, and authority to make this Agreement and bind each respective Party.

3.18 Counterparts. This Agreement may be signed in counterparts, each of which shall constitute an original.

3.19 Declaration of Political Contributions. Consultant shall, throughout the term of this Agreement, submit to City an annual statement in writing declaring any political contributions of money, in-kind services, or loan made to any member of the City Council within the previous twelve-month period by the Consultant and all of Consultant’s employees, including any employee(s) that Consultant intends to assign to perform the Services described in this Agreement.

3.20 Subcontracting.

3.20.1 Prior Approval Required. Consultant shall not subcontract any portion of the work required by this Agreement, except as expressly stated herein, without prior written approval of City. Subcontracts, if any, shall contain a provision making them subject to all provisions stipulated in this Agreement.
[Signatures on following page.]
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SIGNATURE PAGE TO PROFESSIONAL SERVICES AGREEMENT
BETWEEN THE CITY OF ALISO VIEJO AND RK ENGINEERING GROUP, Inc.

IN WITNESS WHEREOF, the parties have executed this Professional Services Agreement on this ____ day of __________, 2025.

CITY OF ALISO VIEJO

Approved:

By:

Mitzi Ortiz
City Manager

ATTEST:

By: _______________________________
Janet Martinez
City Clerk
APPROVED AS TO FORM:
______________________________
Best Best & Krieger LLP
City Attorney

APPROVED AS TO COMPLIANCE

WITH BUDGET
By:

Ann Eifert
Director of Financial Services
RK ENGINEERING GROUP, INC.

[If Corporation, TWO SIGNATURES,
President OR Vice President AND Secretary
OR Treasurer REQUIRED]
By:

Its:

Printed Name:

By:

Its:

Printed Name:_________________________

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CITY OF ALISO VIEJO

DECLARATION OF POLITICAL CONTRIBUTIONS
Using the space provided below, please list any political contributions of money, in- kind services, or loans made to any member of the City Council within the last twelve (12) months by Consultant and all of Consultant’s employees, including any employee(s) that applicant intends to assign to perform the work or services described in this Agreement:

To the best of my knowledge, I declare under penalty of perjury that the foregoing is true and was executed at:

City/County/State Date

Name of Business Print Name

Signature
NOTE: THIS DECLARATION IS INCLUDED AS PART OF THE AGREEMENT AND MUST BE SIGNED AND ATTACHED HERETO. 152
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CITY OF ALISO VIEJO

ACKNOWLEDGMENT OF RECEIPT OF FRAUD POLICY
I hereby acknowledge that I have received a copy of the City’s “Fraud Prevention Policy” dated October 1, 2008. I understand that I am to promptly read its contents and distribute copies to employees assigned to perform Services for the City of Aliso Viejo.

To the extent that provisions of this policy conflict with previously issued policies or practices, whether or not such policies and practices were contained in written policies, this policy shall prevail.

Name of Business Print Name

Signature

Date

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A-1

EXHIBIT “A”

SCOPE OF SERVICES

General On-Call Traffic Engineering Services

General On-Call Traffic Engineering Services tasks shall include, but are not limited to:

• Conduct or review traffic engineering studies, traffic operations analysis, traffic safety, and transportation planning studies or project specific traffic analyses; • Develop alternative analysis and preliminary engineering design; • Conduct traffic calming analysis and design;
• Provide traffic engineering data collection support – traffic counts, pedestrian counts, intersection turning movement counts, speed surveys, etc... • Provide traffic control device studies and design (signs, signals, pavement markings, electronic speed feedback signs and pedestrian beacons); • Perform technical studies to support Active Transportation Programs; • Review subdivision or new development projects involving traffic impact analyses, parking studies, transportation modeling, VMT, and area-wide transportation studies; o Review time shall be within 2 weeks of initial submittal and within 1 week for subsequent submittals.
• Design traffic signal system including plans, specifications, engineer’s cost estimate and contract bid documents for new permanent signal installation; modifications to existing signals, signal interconnect installation and support for potential Traffic Management Center (TMC);
• Design bike facilities and/or active transportation related projects; • Prepare or review stage construction and worksite traffic control plans; • Provide Construction management and inspection support for transportation projects; • Assist and provide technical assistance in identification and preparation of various traffic and roadway improvement grant applications and management; • Provide updates to the City’s fiber master plan and local signal synchronization plan; • Provide support for regional traffic signal synchronization projects;. • Traffic engineering services not specifically identified in previous subtasks may be performed by the Consultant at the direction of the City Engineer.

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B-1

EXHIBIT “B”

SCHEDULE OF SERVICES
In the event that this Agreement is renewed pursuant to Section 3.1.2, the first renewal period shall be from July 1, 2028 to June 30, 2029. The second renewal period shall be from July 1, 2029 to June 30, 2030.
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C-1

EXHIBIT “C”

COMPENSATION
See attached
In the event that this Agreement is renewed pursuant to Section 3.1.2, the rates set forth above may be adjusted each year at the time of renewal described in Exhibit “B” in accordance with the annual average Consumer Price Index of the prior calendar year , All Urban Consumers, Los Angeles-Long Beach-Anaheim up to a maximum percentage of five percent (5%).

156

EXHIBIT A
Billing Rates for RK Engineering Group, Inc.

Position

Hourly Rate
Founding Principal $200
President $190
Principal $190
Associate Principal $180
Associate Engineer/Planner $170
Senior Engineer/Planner $150
Engineer/Planner V $140
Engineer/Planner IV $130
Engineer/Planner III $120
Engineer/Planner II $110
Engineer/Planner I $100
Assistant Engineer/Planner $90
Engineering Technician $70
Engineering Aide $50
Office Manager $100
Executive Assistant $80
Administrative Assistant $60
Administrative Aide $50

General
(1) Reimbursable direct costs, such as reproduction, supplies, delivery service, telephone, travel and traffic counts will be billed at cost plus ten (10) percent. PDF report copies included in fees, printed report copies charged at a minimum of $100 each.
(2) Hourly rates apply to work time, travel time and time spent at public hearings and meetings. For overtime work and expert witness work, the above rates may be increased 50 percent. Hourly rates for depositions and trials will be increased by 100%.
(3) Client payment for professional services is not contingent upon the client receiving payment from other parties. (4) Billing statements for work will be submitted monthly. Statements are payable within thirty (30) days of statement date. Any statement unpaid after thirty (30) days shall be subject to interest at the maximum permitted by law. (5) Rates are subject to change.

RK accepts checks, wire transfers and online payments. Contact us for details.

Rev. February 1, 2025
157

City of Aliso Viejo

COUNCIL POLICY

SUBJECT

FRAUD PREVENTION POLICY

RES. NO.

2005-
056
POLICY NO.

400-15
EFF. DATE

10/01/2008
PAGE

1 of 8

PURPOSE

To establish Policy and procedures for the prev ention and detection of fraud and other related dishonest activities against th e City and, when appropriate, to pursue legal remedies available under the law.

This Policy has been established to ensure that elected officials, officers, employees, and members of advisory boards, commissions and committees of the City of Alis o Viejo are aware of the following:

1. Acts that are considered to be fraudulent;

2. Procedures for reporting suspected fraudulent acts;

3. Steps to be taken when fraud or other rela ted dishonest activities are suspected; and

4. Consequences to expect when a dishonest act is reported.

Further, this Policy delineates management’s responsibility for instituting and maintaining a system of internal control to prevent and detect fraud, misappropriations and other irregularities, and to be alert for any indications of such misconduct.

POLICY

1. GENERAL

The City of Aliso Viejo is committed to protecting its assets against the risk of loss or misuse.

Accordingly, it is the policy of the City to identify and promptly investig ate any possibility of fraudulent or related dishonest ac tivities against the City and, w hen appropriate, to pursue legal remedies available under law.

2. DEFINITIONS

a. Fraud
– Fraud and other similar irregularities including, but not limited to:

i. claim for reimbursement of expenses that are not job-related or authorized by current policy;

ii. forgery or unauthorized alteration of doc uments (checks, time sheets, independent contractor agreements, purchase orders, budgets, etc.); 158

City of Aliso Viejo

COUNCIL POLICY

SUBJECT

FRAUD PREVENTION POLICY

RES. NO.

2005-
056
POLICY NO.

400-15
EFF. DATE

10/01/2008
PAGE

2 of 8

iii. misappropriation of City assets (funds, securi ties, supplies, furniture, equipment, etc.);

iv. improprieties in the handling or reporting of money or financial transactions;

v. authorizing or receiving payment for goods not received or services not performed;

vi. computer-related activity involving unauthor ized alteration, destruction, forgery, or manipulation of data or misappropriation of City-owned software;

vii. misrepresentation of information on documents;

viii. any violation of Federal, State, or Local laws related to dishonest activities or fraud;

ix. seeking or accepting anything of material value from those doing business with the City, including vendors, consultants, contract ors, lessees, applicants, and grantees.

Materiality is determined by t he City’s Conflict of Interest Code, which incorporates the Fair Political Practices Commission’s regulations;

x. obtaining profit or personal ga in as a result of “insider” knowledge of City activities;

xi. disclosing confidential and proprietary information to outside parties; or

xii. Intentional, false representation or concealment of material fact for the purpose of personal gain.

b. Employee
– Any individual or group of individuals who receive co mpensation, either full or part-time, from the City of Alis o Viejo for employment or prov iding services. The term also includes any volunteer who provides services to the City through an official arrangement with the City or a City organization, as well as cons ultants, vendors, contra ctors, outside agencies and/or any other parties with a business relationship with the City of Aliso Viejo.

c. Official
- Elected officials, officers, and me mbers of advisory or appointed boards, commissions and committees.

d. Management – Any administrator, manager, director , supervisor, or other individual who manages or supervises funds or other resources, including human resources.

159

City of Aliso Viejo

COUNCIL POLICY

SUBJECT

FRAUD PREVENTION POLICY

RES. NO.

2005-
056
POLICY NO.

400-15
EFF. DATE

10/01/2008
PAGE

3 of 8
e. Internal Auditor – Any person or persons assigned by the City Manager to investigate any fraud or similar activity.

f. External Auditor – Independent audit prof essionals who perform annual audits of the City’s financial statements.

3. INVESTIGATION

a. It is the City’s intent to fu lly investigate any suspected acts of fraud. An objective and impartial investigation will be conducted regardless of the posit ion, title, length of service or relationship with the City of any party who mi ght be or become involv ed in or becomes the subject of such investigation.

b. Each department of the Ci ty is responsible for institut ing and maintain ing a system of internal control to provide r easonable assurance for the prev ention and detection of fraud.

Management should be familiar with the types of improprieties that might occur within their area of responsibility and be alert for any indications of such conduct.

c. The Internal Auditor, in conjunction with the City Attorney, has the primary responsibility for the investigation of fraud.

d. Throughout the investigation, the Internal Auditor will info rm the City Manager of pertinent investigative findings.

e. Employees will be gr anted “whistle-blower protection,” as described below when acting in accordance with this Policy. When informed of suspected fraud, neither the City nor any person acting on behalf of the City shall:

i. dismiss or threaten to dismiss the Employee reporting the suspected fraud;

ii. discipline, suspend, or th reaten to discipline or sus pend the Employee reporting the suspected fraud;

iii. impose any penalty upon the Employee reporting the suspected fraud, or;

iv. intimidate or coerce the Employ ee reporting the suspected fraud.

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Violations of these “whistle-blower protections” may result in discipline up to and including dismissal.

f. Upon conclusion of the investigation, the results will be reported to the City Manager.

g. The City Manager, following review of investi gation results, will take appropriate disciplinary action regarding Employee misconduct. Discipl inary action can include termination of employment or a contract, and referral of the case to the District Attorney’s Office for possible prosecution.

h. The City will pursue every r easonable effort, including court or dered restitution, to obtain recovery of City losses from the offender, or other appropriate sources.

PROCEDURE

1. RESPONSIBILITIES OF OFFICIALS

a. If an Official has reason to su spect that a fraud has occurred, he or she shall immediately contact the City Manager.

b. An Official shall not attempt to investi gate the suspected fraud or discuss the matter with anyone other than the City Manager.

c. The alleged fraud or audit in vestigation shall not be di scussed with the media by any person other than through the City Manager in consultation with the City Attorney and the Internal Auditor.

2. MANAGEMENT RESPONSIBILITIES

a. Management is responsible for detecting, pr eventing and reporting frau d in their areas of responsibility.

b. Each manager should be familiar with the types of fraud t hat might occur in his or her area and be alert for any indication that fraud is or was in existence in his or her area.

c. When fraud is detected or suspected, M anagement should determine whether an error or mistake has occurred or if there may be dishonest or fraudulent activity.

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d. If Management determines a suspected activity may involve fraud, they should contact their immediate supervisor. In the event the acti vity involves the immediate supervisor, the activity should be reported to the Department Director.

e. Upon being notified of su spected fraud, Department Direc tors shall inform the City Manager.

f. Management should not attempt to conduct in dividual investigations, interviews, or interrogations. However, Management is re sponsible for taking appropriate corrective actions to ensure adequate controls exist to prevent reoccurrences of fraud.

g. Management shall cooperate fully with the Inte rnal Auditor, other involved departments, and law enforcement agencies in the detection, reporting, and investigation of fraud, including the prosecution of offenders.

h. Management will have full and unrestricted access to all necessary records and personnel.

All City furniture and c ontents, including desks and computer s, are open to inspection at any time. There is no assumption of privacy.

i. In dealing with suspected fr aud, great care must be taken. Management should not:

i. make accusations;

ii. alert individuals suspected of committi ng fraud that an investigation is underway;

iii. treat individuals suspected of committing fraud unfairly, or;

iv. make statements that could lead to claims of false accusations or other offenses.

j. In handling suspected fraud activities , Management has the responsibility to:

i. make no contact (unless requested) with the individual suspected of committing fraud to determine facts or demand restitution. U nder no circumstances should there be any reference to “what you did”, “the crime”, “the fraud”, “the misappropriation”, etc.;

ii. avoid discussing the case, fa cts, suspicions, or allegations with anyone outside the City, unless specifically directed to do so by the City Attorney;

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iii. avoid discussing the case with anyone in side the City other than the City Manager, Internal Auditor, or City Attorney or law enforcement personnel;

iv. direct all inquiries from the individual suspected of co mmitting fraud, or his or her representative, to the City M anager or City Attorney. All inquiries by an attorney representing the individual suspected of committing fraud should be directed to the City Attorney. All inquiries from the media should be directed to the City Manager, and;

v. take appropriate corrective and disciplinar y action, up to and including dismissal, if authorized by and in conformance with the City’s personnel policies.

3. EMPLOYEE RESPONSIBILITIES

a. Employees should report detected or sus pected fraud to the Employee’s supervisor.

b. In the event the suspected fraud involves the Employee’s immediate supervisor, the Employee shall make the report directly to the next higher level of Management and/or the City Manager.

c. The reporting Employee shall refr ain from further investigation of the incident, confrontation with the alleged violator, or further discussion of the incident with anyone, unless requested by the City Manager, Internal Auditor, City Attorney, or law enforcement personnel.

4. INTERNAL AUDITOR RESPONSIBILITIES

a. Upon assignment by the City Manager, the Inte rnal Auditor will promptly investigate the fraud.

b. In all circumstances wher e there appears to be reasonable gr ounds for suspecting that a fraud has taken place, the Internal Auditor, in consultation with the City Attorney, will contact appropriate law enforcement personnel.

c. The Internal Auditor shall be available and receptive to receiving relevant, confidential information to the extent allowed by law.

d. If evidence is uncovered showing possible fraud, the Internal Auditor will proceed as follows:

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i. discuss the findings with Management and t he City Manager to dete rmine if disciplinary actions should be taken;

ii. report to the External Audito r such activities in order to assess the effect of the fraud activity on the City’s financial statements;

iii. coordinate with Managem ent regarding notification to insurers and filing of insurance claims;

iv. take immediate action, in consultation wit h the City Attorney, to prevent the theft, alteration, or destruction of evidentiary record s. Such action shall include, but is not limited to:

(A) removing the records and placing them in a secure location, or limiting access to the location where the records currently exist, and;

(B) preventing the individual suspected of committing the fraud from having access to the records.

e. In consultation with the City Attorney and appropriate law enforcement personnel, the Internal Auditor may disclose particulars of the investigation with potential witnesses if such disclosure would further the investigation.

f. If the Internal Auditor is contacted by the media regar ding an alleged fraud or investigation, the Internal Auditor will direct all inquiries to the City Manager.

g. At the conclusion of the in vestigation, the Internal Audito r will document the results in a confidential memorandum report to the City Manager and the City Attorney. If the report concludes that the allegations are supported by evidence, the report will be forwarded to appropriate law enforcement personnel.

h. Unless exceptional circumstances exist, a per son under investigation for fraud is to be given notice in writing of essent ial particulars of t he allegations following the conclusion of the investigation. Where not ice is given, the person agains t whom allegations are being made may submit a written expl anation to the Internal Auditor no later than seven (7) calendar days after notice is received.

i. The Internal Auditor shall make recomm endations to the appropria te department for 164

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assistance in the prevention of future similar occurrences.

j. Upon completion of the investigation, includ ing all legal and personnel actions, all records, documents, and other evidentiary materi al, obtained from the department under investigation will be returned by the Internal Auditor to that department.

DISCIPLINARY ACTIONS

Any Employee found to be responsible for fraud or who knowingly makes false allegations in violation of this Policy shall be subject to a ppropriate disciplinary action, up to and including termination of employment and/or te rmination of the contract. Th e severity of the disciplinary action will be based upon the circumstances of t he violation and in accordance with the City’s personnel policies. The City will assess any re medial measures necessary to address and correct the circumstance and pr event reoccurrence in the futu re. Remedial measures may include, but are not limited to , disciplinary action, reorganizati on of personnel, training and education, counseling and/or other employee assistance.

EXCEPTIONS

There will be no exceptions to this Policy unle ss provided and approved by the City Manager and the City Attorney.

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CITY OF ALISO VIEJO

ACKNOWLEDGMENT OF RECEIPT OF FRAUD POLICY

I hereby acknowledge that I have received a copy of the City’s “Fraud Prevention Policy” dated October 1, 2008. I understand that I am to promptly read its contents and di stribute copies to employees assigned to perform Services for the City of Aliso Viejo.

To the extent that provisions of this policy conf lict with previously issued policies or practices, whether or not such policies and practices were contained in written policies, this policy shall prevail.

Name of Business Print Name

Signature

Date

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CITY OF ALISO VIEJO

PROFESSIONAL SERVICES AGREEMENT
FOR

ON-CALL TRAFFIC ENGINEERING SERVICES

1. PARTIES AND DATE.

This Agreement is made and entered into this day of , 2025, by and between the City of Aliso Viejo, a municipal corporation organized under the laws of the State of California with its principal place of business at 12 Journey, Suite 100, Aliso Viejo, California 92656 (“City”) and Advantec Consulting Engineers, Inc. a corporation, with its principal place of business at 1200 Roosevelt, Irvine, CA 92620 (“Consultant”). City and Consultant are sometimes individually referred to herein as “Party” and collectively as “Parties.”

2. RECITALS.

2.1 Consultant.

Consultant desires to perform and assume responsibility for the provision of professional consultant services required by the City on the terms and conditions set forth in this Agreement.

Consultant represents that it is experienced in providing professional consultant services to public clients, is licensed in the State of California, and is familiar with the plans of City.

2.2 Project.

City desires to engage Consultant to render such services for On-Call Traffic Engineering Services (“Project”) as set forth in this Agreement.

3. TERMS.

3.1 Scope of Services and Term.

3.1.1 General Scope of Services . Consultant promises and agrees to furnish to the City all labor, materials, tools, equipment, services, and incidental and customary work necessary to fully and adequately supply the professional consultant services necessary for the Project (“Services”). The Services are more particularly described in Exhibit “A” attached hereto and incorporated herein by reference. All Services shall be subject to, and performed in accordance with, this Agreement, the exhibits attached hereto and incorporated herein by reference, and all applicable local, state and federal laws, rules and regulations.

3.1.2 Term. The term of this Agreement shall be from July 1, 2025 to June 30, 2028, unless earlier terminated as provided herein. The City Manager shall have the unilateral option, at its sole discretion, to renew this Agreement annually for no more than tw o additional one-year terms. Consultant shall complete the Services within the term of this Agreement, and shall meet any other established schedules and deadlines.

3.2 Responsibilities of Consultant.
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3.2.1 Control and Payment of Subordinates; Independent Contractor . The Services shall be performed by Consultant or under its supervision. Consultant will determine the means, methods and details of performing the Services subject to the requirements of this Agreement. City retains Consultant on an independent contractor basis and not as an employee.

Consultant shall complete, execute, and submit to City a Request for Taxpayer Identification Number and Certification (IRS FormW -9) prior to commencement of any Services under this Agreement. Neither City, nor any of its officials, officers, directors, employees or agents shall have control over the conduct of Consultant or any of Consultant's officers, employees, or agents, except as set forth in this Agreement. Consultant retains the right to perform similar or different services for others during the term of this Agreement. Any additional personnel performing the Services under this Agreement on behalf of Consultant shall also not be employees of City and shall at all times be under Consultant’s exclusive direction and control.

Consultant shall pay all wages, salaries, and other amounts due such personnel in connection with their performance of Services under this Agreement and as required by law. Consultant shall be responsible for all reports and obligations respecting such additional personnel, including, but not limited to: social security taxes, income tax withholding, unemployment insurance, disability insurance, and workers’ compensation insurance.

3.2.2 Schedule of Services.

3.2.2.1 Consultant shall perform the Services expeditiously, within the term of this Agreement, and in accordance with the Schedule of Services set forth in Exhibit “B” attached hereto and incorporated herein by reference. Consultant represents that it has the professional and technical personnel required to perform the Services in conformance with such conditions. In order to facilitate Consultant’s conformance with the Schedule, City shall respond to Consultant’s submittals in a timely manner. Upon request of City, Consultant shall provide a more detailed schedule of anticipated performance to meet the Schedule of Services.

3.2.2.2 Neither City nor Consultant shall be considered in default of this Agreement for delays in performance caused by circumstances beyond the reasonable control of the non -performing Party. For purposes of this Agreement, such circumstances include a Force Majeure Event. A Force Majeure Event shall mean an event that materially affects a Party’s performance and is one or more of the following: (1) Acts of God or other natural disasters; (2) terrorism or other acts of a public enemy; (3) orders of governmental authorities (including, without limitation, unreasonable and unforeseeable delay in the issuance of permits or approvals by governmental authorities that are required for the Services); (4) strikes and other organized labor action occurring at the site and the effects thereof on the Services, only to the extent such strikes and other organized labor action are beyond the control of Consultant and its subcontractors, and to the extent the effects thereof cannot be avoided by use of replacement workers; and (5) pandemics, epidemics or quarantine restrictions. For purposes of this section, “orders of governmental authorities,” includes ordinances, emergency proclamations and orders, rules to protect the public health, welfare and safety, and other actions of a p ublic agency applicable to the Services and Agreement.

3.2.2.3 Should a Force Majeure Event occur, the non -performing Party shall, within a reasonable time of being prevented from performing, give written notice to the other Party describing the circumstances preventing continued performance and the efforts being 168
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made to resume performance of this Agreement. Force Majeure Events and/or delays, regardless of the Party responsible for the delay, shall not entitle Consultant to any additional compensation. Notwithstanding the foregoing in this section, the City may still terminate this Agreement in accordance with the termination provisions of this Agreement.

3.2.3 Conformance to Applicable Requirements . All work prepared by Consultant shall be subject to the approval of City.

3.2.4 Substitution of Key Personnel . Consultant has represented to City that certain key personnel will perform and coordinate the Services under this Agreement. Should one or more of such personnel become unavailable, Consultant may substitute other personnel of at least equal competence upon written approval of City. In the event that City and Consultant cannot agree as to the substitution of key personnel, City shall be entitled to terminate this Agreement for cause. As discussed below, any personnel who fail or refuse to perform the Services in a manner acceptable to the City, or who are determined by the City to be uncooperative, incompetent, a threat to the adequate or timely completion of the Project or a threat to the safety of persons or property, shall be promptly removed from the Project by the Consultant at the request of the City. The key personnel for performance of this Agreement are as follows: Carlos Ortiz.

3.2.5 City’s Representative. The City hereby designates the City Manager, or his or her designee, to act as its representative for the performance of this Agreement (“City’s Representative”). City’s Representative shall have the power to act on behalf of the City for all purposes under this Contract. The City Manager hereby designates Public Works Director/City Engineer, or his or her designee, as the City’s contact for the implementation of the Services hereunder. Consultant shall not accept direction or orders from any person other than the City’s Representative or his or her designee.

3.2.6 Consultant’s Representative. Consultant hereby designates Carlos Ortiz, or his or her designee, to act as its representative for the performance of this Agreement (“Consultant’s Representative”). Consultant’s Representative shall have full authority to represent and act on behalf of the Consultant for all purposes under this Agreement. The Consultant’s Representative shall supervise and direct the Services, using his best skill and attention, and shall be responsible for all means, methods, techniques, sequences and procedures and for the satisfactory coordination of all portions of the Services under this Agreement.

3.2.7 Coordination of Services . Consultant agrees to work closely with City staff in the performance of Services and shall be available to City’s staff, consultants and other staff at all reasonable times.

3.2.8 Standard of Care; Performance of Employees . Consultant shall perform all Services under this Agreement in a skillful and competent manner, consistent with the standards generally recognized as being employed by professionals in the same discipline in the State of California. Consultant represents and maintains that it is skilled in the professional calling necessary to perform the Services. Consultant warrants that all employees and subconsultants shall have sufficient skill and experience to perform the Services assigned to them. Consultant represents and maintains that all employees and subconsultants have 169
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undergone workplace harassment training and completed criminal background checks with no felony or misdemeanor violations within 5 years prior to performance of the Services. Finally, Consultant represents that it, its employees and subconsultants have all licenses, permits, qualifications and approvals of whatever nature that are legally required to perform the Services and that such licenses and approvals shall be maintained throughout the term of this Agreement.

As provided for in the indemnification provisions of this Agreement, Consultant shall perform, at its own cost and expense and without reimbursement from the City, any services necessary to correct errors or omissions which are caused by the Consultant’s failure to comply with the standard of care provided for herein. Any employee of the Consultant or its sub -consultants who is determined by the City to be uncooperative, incompetent, a threat to the adequate or timely completion of the Project, a threat to the safety of persons or property, or any employee who fails or refuses to perform the Services in a manner acceptable to the City, shall be promptly removed from the Project by the Consultant and shall not be re -employed to perform any of the Services or to work on the Project.

3.2.9 Laws and Regulations . Consultant shall keep itself fully informed of and in compliance with all local, state and federal laws, rules and regulations in any manner affecting the performance of the Project or the Services, including all Cal/OSHA requirements, and shall give all notices required by law. Consultant shall be liable for all violations of such laws and regulations in connection with Services. If the Consultant performs any work knowing it to be contrary to s uch laws, rules and regulations , Consultant shall be solely responsible for all costs arising therefrom. Consultant shall defend, indemnify and hold City, its officials, directors, officers, employees and agents free and harmless, pursuant to the indemnification provisions of this Agreement, from any claim or liability arising out of any failure or alleged failure to comply with such laws, rules or regulations.

3.2.10 Insurance.

3.2.10.1 Time for Compliance . Consultant shall not commence Work under this Agreement until it has provided evidence satisfactory to the City that it has secured all insurance required under this section. In addition, Consultant shall not allow any subconsultant to commence work on any subcontract until it has provided evidence satisfactory to the City that the subconsultant has secured all insurance required under this section.

3.2.10.2 Types of Insurance Required . As a condition precedent to the effectiveness of this Agreement for work to be performed hereunder and without limiting the indemnity provisions of the Agreement, the Consultant in partial performance of its obligations under such Agreement, shall procure and maintain in full force and effect during the term of the Agreement, the following policies of insurance. If the existing policies do not meet the Insurance Requirements set forth herein, Consultant agrees to amend, supplement or endorse the policies to do so.
(a) Commercial General Liability: Commercial General Liability Insurance which affords coverage at least as broad as Insurance Services Office “occurrence” form CG 0001, with minimum limits of at least $1,000,000 per occurrence, and if written with an 170
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aggregate, the aggregate shall be double the per occurrence limit.

Defense costs shall be paid in addition to the limits.

The policy shall contain no endorsements or provisions limiting coverage for (1) contractual liability; (2) cross liability exclusion for claims or suits by one insured against another; or (3) contain any other exclusion contrary to the Agreement.
(b) Automobile Liability Insurance: Automobile Liability Insurance with coverage at least as broad as Insurance Services Office Form CA 0001 covering “Any Auto” (Symbol 1) with minimum limits of $1,000,000 each accident.
(c) Contractors Pollution Liability: (if necessary)
Contractors Pollution Liability Insurance covering all of the contractor’s operations to include onsite and offsite coverage for bodily injury (including death and mental anguish), property damage, defense costs and cleanup costs with minimum limits of $5 million per loss and $10 million total all losses. The policy shall contain no endorsements or provisions limiting contractual liability or coverage for cross liability of claims or suits by one insured against another.

If coverage is written on a claims -made basis, the retroactive date shall precede the effective date of the initial Agreement and continuous coverage will be maintained or an extended reporting period will be exercised for a period of at least three (3) years from termination or expiration of this Agreement.
(d) Professional Liability: Professional Liability insurance with minimum limits of $1,000,000. Covered professional services shall specifically include all work to be performed under the Agreement and delete any exclusions that may potentially affect the work to be performed (for example, any exclusions relating to lead, asbestos, pollution, testing, underground storage tanks, laboratory analysis, soil work, etc.).

If coverage is written on a claims -made basis, the retroactive date shall precede the effective date of the initial Agreement and continuous coverage will be maintained or an extended reporting period will be exercised for a period of at least three (3) years from termination or expiration of this Agreement.
(e) Workers’ Compensation: Workers’ Compensation Insurance, as required by the State of California and Employer’s Liability Insurance with a limit of not less than $1,000,000 per accident for bodily injury and disease.
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3.2.10.3 Endorsements. Required insurance policies shall not be in compliance if they include any limiting provision or endorsement that has not been submitted to the City for approval.
(a) The policy or policies of insurance required by Section 3.2.10.2 (a) Commercial General Liability and (c) Contractor’s Pollution Liability shall be endorsed to provide the following:
(1) Additional Insured: The City of Aliso Viejo , its officials, officers, employees, agents, and volunteers shall be
additional insureds with regard to liability and defense of suits or claims arising out of the performance of the
Agreement.

Additional Insured Endorsements shall not (1) be restricted to “ongoing operations”; (2) exclude “contractual liability”; (3) restrict coverage to “sole” liability of Consultant; or (4) contain any other exclusions contrary to the Agreement. (2) Cancellation: Required insurance policies shall not be canceled or the coverage reduced until a thirty (30) day written notice of cancellation has been served upon the City except ten (10) days shall be allowed for non -payment of premium.
(b) The policy or policies of insurance required by Section 3.2.10.2 (b) Automobile Liability and (d) Professional Liability shall be endorsed to provide the following:
(1) Cancellation: Required insurance policies shall not be canceled or the coverage reduced until a thirty (30) day written notice of cancellation has been served upon the City except ten (10) days shall be allowed for non -payment of premium.
(c) The policy or policies of insurance required by Section 3.2.10.2 (e) Workers’ Compensation shall be endorsed to provide the
following:
(1) Waiver of Subrogation: A waiver of subrogation stating that the insurer waives all rights of subrogation against the indemnified parties.
(2) Cancellation: Required insurance policies shall not be canceled or the coverage reduced until a thirty (30) day written notice of cancellation has been served upon the City except ten (10) days shall be allowed for non -payment of premium.
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3.2.10.4 Primary and Non -Contributing Insurance . All insurance coverages shall be primary and any other insurance, deductible, or self -insurance maintained by the indemnified parties shall not contribute with this primary insurance. Policies shall contain or be endorsed to contain such provisions.

3.2.10.5 Waiver of Subrogation. Required insurance coverages shall not prohibit Consultant from waiving the right of subrogation prior to a loss. Consultant shall waive all subrogation rights against the indemnified parties. Policies shall contain or be endorsed to contain such provisions.

3.2.10.6 Deductible. Any deductible or self -insured retention must be approved in writing by the City and shall protect the indemnified parties in the same manner and to the same extent as they would have been protected had the policy or policies not contained a deductible or self-insured retention.

3.2.10.7 Evidence of Insurance . The Consultant, concurrently with the execution of the Agreement, and as a condition precedent to the effectiveness thereof, shall deliver either certified copies of the required policies, or original certificates and endorsements on forms approved by the City. The certificates and endorsements for each insurance policy shall be signed by a person authorized by that insurer to bind coverage on its behalf. At least fifteen (15 days) prior to the expiration of any such policy, evidence of insurance showing that such insurance coverage has been renewed or extended shall be filed with the City. If such coverage is cancelled or reduced, Consultant shall, within ten (10) days after receipt of written notice of such cancellation or reduction of coverage, file with the City evidence of insurance showing that the required insurance has been reinstated or has been provided through another insurance company or companies.

3.2.10.8 Failure to Maintain Coverage . Consultant agrees to suspend and cease all operations hereunder during such period of time as the required insurance coverage is not in effect and evidence of insurance has not been furnished to the City. The City shall have the right to withhold any payment due Consultant until Consultant has fully complied with the insurance provisions of this Agreement.

In the event that the Consultant’s operations are suspended for failure to maintain required insurance coverage, the Consultant shall not be entitled to an extension of time for completion of the Services because of production lost during suspension.

3.2.10.9 Acceptability of Insurers . Each such policy shall be from a company or companies with a current A.M. Best’s rating of no less than A:VII and authorized to do business in the State of California, or otherwise allowed to place insurance through surplus line brokers under applicable provisions of the California Insurance Code or any federal law.

3.2.10.10 Insurance for Subconsultants . All Subconsultants shall be included as additional insureds under the Consultant’s policies, or the Consultant shall be responsible for causing Subconsultants to purchase the appropriate insurance in compliance with the terms of these Insurance Requirements, including adding the City as an Additional Insured to the Subconsultant’s policies.
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3.2.11 Safety. Consultant shall execute and maintain its work so as to avoid injury or damage to any person or property. In carrying out its Services, the Consultant shall at all times be in compliance with all applicable local, state and federal laws, rules and regulations, and shall exercise all necessary precautions for the safety of employees appropriate to the nature of the work and the conditions under which the work is to be performed. Safety precautions where applicable shall include, but shall not be limited to: (A) adequate life protection and life saving equipment and procedures; (B) instructions in accident prevention for all employees and subconsultants, such as safe walkways, scaffolds, fall protection ladders, bridges, gang planks, confined space procedures, trenching and shoring, equipment and other safety devices, equipment and wearing apparel as are necessary or lawfully required to prevent accidents or injuries; and (C) adequate facilities for the proper inspection and maintenance of all safety measures.

3.3 Fees and Payments.

3.3.1 Compensation. Consultant shall receive compensation, including authorized reimbursements, for all Services rendered under this Agreement at the rates set forth in Exhibit “C” attached hereto and incorporated herein by reference. The total compensation shall not exceed Fifty Thousand DOLLARS ($50,000.00) (“Total Compensation”) without written approval of City’s City Manager. Extra Work may be authorized, as described below, and if authorized, will be compensated at the rates and manner set forth in this Agreement.

3.3.2 Payment of Compensation.

Consultant shall submit to City a monthly itemized statement which indicates work completed and hours of Services rendered by Consultant. The statement shall describe the amount of Services and supplies provided since the initial commencement date, or since the start of the subsequent billing periods, as appropriate, through the date of the statement. City shall, within 45 days of receiving such statement, review the statement and pay all non-disputed and approved charges thereon.

3.3.3 Reimbursement for Expenses. Consultant shall not be reimbursed for any expenses unless authorized in writing by City.

3.3.4 Extra Work . At any time during the term of this Agreement, City may request that Consultant perform Extra Work. As used herein, “Extra Work” means any work which is determined by City to be necessary for the proper completion of the Project, but which the Parties did not reasonably anticipate would be necessary at the execution of this Agreement.

Consultant shall not perform, nor be compensated for, Extra Work without written authorization from the City.

3.3.5 Prevailing Wages; DIR Registration.

3.3.5.1 Consultant is aware of the requirements of California Labor Code Section 1720, et seq., and 1770, et seq., as well as California Code of Regulations, Title 8, Section 16000, et seq., (“Prevailing Wage Laws”), which require the payment of prevailing wage rates and the performance of other requirements on “public works” and “maintenance” projects.

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project, as defined by the Prevailing Wage Laws, and if the total compensation is $1,000 or more, Consultant agrees to fully comply with such Prevailing Wage Laws. City shall provide Consultant with a copy of the prevailing rates of per diem wages in effect at the commencement of this Agreement. Consultant shall make copies of the prevailing rates of per diem wages for each craft, classification or type of worker needed to execute the Services available to interested parties upon request, and shall post copies at the Consultant’s principal place of business and at the project site. It is the intent of the parties to effectuate the requirements of sections 1771, 1774, 1775, 1776, 1777.5, 1813, and 1815 of the Labor Code within this Agreement, and Consultant shall therefore comply with such Labor Code sections to the fullest extent required by law. Consultant shall defend, indemnify and hold the City, its elected officials, officers, employees and agents free and harmless from any claim or liability arising out of any failure or alleged failure to comply with the Prevailing Wage Laws.

3.3.5.2 If the Services are being performed as part of an applicable “public works” or “maintenance” project, in addition to the foregoing, then pursuant to Labor Code sections 1725.5 and 1771.1, the Consultant and all subconsultants must be registered with the Department of Industrial Relations (“DIR”). Consultant shall maintain registration for the duration of the project and require the same of any subconsultants. This project may also be subject to compliance monitoring and enforcement by the DIR. It shall be Contractor’s sole responsibility to comply with all applicable registration and labor compliance requirements, including the submission of payroll records directly to the DIR.

3.4 Accounting Records.

3.4.1 Maintenance and Inspection . Consultant shall maintain complete and accurate records with respect to all costs and expenses incurred under this Agreement. All such records shall be clearly identifiable. Consultant shall allow a representative of City during normal business hours to examine, audit, and make transcripts or copies of such records and any other documents created pursuant to this Agreement. Consultant shall allow inspection of all work, data, documents, proceedings, and activities related to the Agreement for a period of three (3) years from the date of final payment under this Agreement.

3.5 General Provisions.

3.5.1 Termination of Agreement.

3.5.1.1 Grounds for Termination . City may, by written notice to Consultant, terminate the whole or any part of this Agreement at any time and without cause by giving written notice to Consultant of such termination, and specifying the effective date thereof, at least seven (7) days before the effective date of such termination. Upon termination, Consultant shall be compensated only for those services which have been adequately rendered to City, and Consultant shall be entitled to no further compensation. Consultant may not terminate this Agreement except for cause. The rights and remedies of the City provided in this section shall not be exclusive and are in addition to any other rights and remedies provided by law, equity or under this Agreement.
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3.5.1.2 Effect of Termination . If this Agreement is terminated as provided herein, City may require Consultant to provide all finished or unfinished Documents and Data and other information of any kind prepared by Consultant in connection with the performance of Services under this Agreement. Consultant shall be required to provide such document and other information within fifteen (15) days of the request.

3.5.1.3 Additional Services. In the event this Agreement is terminated in whole or in part as provided herein, City may procure, upon such terms and in such manner as it may determine appropriate, services similar to those terminated.

3.5.2 Delivery of Notices . All notices permitted or required under this Agreement shall be given to the respective parties at the following address, or at such other address as the respective parties may provide in writing for this purpose:

Consultant:

Advantec Consulting Engineers, Inc.
1200 Roosevelt,
Irvine, CA 92620
City:

City of Aliso Viejo
12 Journey, Suite 100
Aliso Viejo, CA 92656
Attn: Shaun Pelletier, Public Works Department
Such notice shall be deemed made when personally delivered or when mailed, forty -eight (48) hours after deposit in the U.S. Mail, first class postage prepaid and addressed to the party at its applicable address. Actual notice shall be deemed adequate notice on the date actual notice occurred, regardless of the method of service.

3.5.3 Ownership of Materials and Confidentiality.

3.5.3.1 Documents & Data; Licensing of Intellectual Property . This Agreement creates a non-exclusive and perpetual license for City to copy, use, modify, reuse, or sublicense any and all copyrights, designs, and other intellectual property embodied in plans, specifications, studies, drawings, estimates, and other documents or works of authorship fixed in any tangible medium of expression, including but not limited to, physical drawings or data magnetically or otherwise recorded on computer diskettes, which are prepared or caused to be prepared by Consultant under this Agreement (“Documents & Data”). Consultant shall require all subconsultants to agree in writing that City is granted a non -exclusive and perpetual license for any Documents & Data the subconsultant prepares under this Agreement. Consultant represents and warrants that Consultant has the legal right to license any and all Documents & Data. Consultant makes no such representation and warranty in regard to Documents & Data which were prepared by design professionals other than Consultant or provided to Consultant by the City. City shall not be limited in any way in its use of the Documents and Data at any time, provided that any such use not within the purposes intended by this Agreement shall be at City’s sole risk.
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3.5.3.2 Confidentiality. All ideas, memoranda, specifications, plans, procedures, drawings, descriptions, computer program data, input record data, written information, and other Documents and Data either created by or provided to Consultant in connection with the performance of this Agreement shall be held confidential by Consultant.

Such materials shall not, without the prior written consent of City, be used by Consultant for any purposes other than the performance of the Services. Nor shall such materials be disclosed to any person or entity not connected with the performance of the Services or the Project. Nothing furnished to Consultant which is otherwise known to Consultant or is generally known, or has become known, to the related industry shall be deemed confidential. Consultant shall not use City’s name or insignia, photographs of the Project, or any publicity pertaining to the Services or the Project in any magazine, trade paper, newspaper, television or radio production or other similar medium without the prior written consent of City.

3.5.3.3 Confidential Information. The City shall refrain from releasing Consultant’s proprietary information (“Proprietary Information”) unless the City’s legal counsel determines that the release of the Proprietary Information is required by the California Public Records Act or other applicable state or federal law, or order of a court of competent jurisdiction, in which case the City shall notify Consultant of its intention to release Proprietary Information.

Consultant shall have five (5) working days after receipt of the Release Notice to give City written notice of Consultant’s objection to the City’s release of Proprietary Information.

Consultant shall indemnify, defend and hold harmless the City, and its officers, directors, employees, and agents from and against all liability, loss, cost or expense (including attorney’s fees) arising out of a legal action brought to compel the release of Proprietary Information. City shall not release the Proprietary Information after receipt of the Objection Notice unless either:
(1) Consultant fails to fully indemnify, defend (with City’s choice of legal counsel), and hold City harmless from any legal action brought to compel such release; and/or (2) a final and non - appealable order by a court of competent jurisdiction requires that City release such information.

3.5.4 Fraud Policy . Consultant shall provide a copy of the City’s Fraud Prevention Policy to each of its employees assigned to perform Services under this Agreement.

Consultant shall submit to the City a statement signed by an authorized representative for Consultant certifying receipt of the City’s Fraud Prevention Policy. A finding by the City that any of Consultant’s employees have committed fraud against the City or have violated the City’s Fraud Prevention Policy shall be grounds for appropriate discipline, up to and including such employee’s removal from performance of this Agreement at City’s request and/or termination of this Agreement. Consultant shall reimburse the City for any costs and expenses associated with fraud against the City.

3.5.5 Cooperation; Further Acts . The Parties shall fully cooperate with one another, and shall take any additional acts or sign any additional documents as may be necessary, appropriate or convenient to attain the purposes of this Agreement.

3.5.6 Attorney’s Fees . If either party commences an action against the other party, either legal, administrative or otherwise, arising out of or in connection with this Agreement, the prevailing party in such litigation shall be entitled to have and recover from the losing party reasonable attorney’s fees and all other costs of such action. 177
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3.5.7 Indemnification.

3.5.7.1 To the fullest extent permitted by law, Consultant shall defend (with counsel of City’s choosing), indemnify and hold the City, its officials, officers, employees, volunteers and agents free and harmless from any and all claims, demands, causes of action, costs, expenses, liability, loss, damage or injury of any kind, in law or equity, to property or persons, including wrongful death, in any manner arising out of, pertaining to, or incident to any alleged acts, errors or omissions, or willful misconduct of Consultant, its officials, officers, employees, subcontractors, consultants or agents in connection with the performance of the Consultant's Services, the Project or this Agreement, including without limitation the payment of all damages, expert witness fees and attorneys fees and other related costs and expenses except such loss or damage caused by the sole negligence or willful misconduct of the City .

Consultant's obligation to indemnify shall survive expiration or termination of this Agreement and shall not be restricted to insurance proceeds, if any, received by the Consultant or the City, its officials, officers, employees, agents or volunteers.

3.5.7.2 If Consultant’s obligation to defend, indemnify, and/or hold harmless arises out of Consultant’s performance as a “design professional” (as that term is defined under Civil Code section 2782.8), then, and only to the extent required by Civil Code section 2782.8, which is fully incorporated herein, Consultant’s indemnification obligation shall be limited to claims that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Consultant, and, upon Consultant obtaining a final adjudication by a court of competent jurisdiction, Consultant’s liability for such claim, including the cost to defend, shall not exceed the Consultant’s proportionate percentage of fault.

3.5.8 Entire Agreement. This Agreement contains the entire Agreement of the parties with respect to the subject matter hereof, and supersedes all prior negotiations, understandings or agreements. This Agreement may only be modified by a writing signed by both parties.

3.5.9 Governing Law . This Agreement shall be governed by the laws of the State of California. Venue shall be in Orange County.

3.5.10 Time of Essence . Time is of the essence for each and every provision of this Agreement.

3.6 City’s Right to Employ Other Consultants. City reserves right to employ other consultants in connection with this Project.

3.7 Successors and Assigns. This Agreement shall be binding on the successors and assigns of the parties.

3.8 Assignment or Transfer . Consultant shall not assign, hypothecate, or transfer, either directly or by operation of law, this Agreement or any interest herein without the prior written consent of the City. Any attempt to do so shall be null and void, and any assignees, hypothecates or transferees shall acquire no right or interest by reason of such attempted assignment, hypothecation or transfer.
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3.9 Construction; References; Captions . Since the Parties or their agents have participated fully in the preparation of this Agreement, the language of this Agreement shall be construed simply, according to its fair meaning, and not strictly for or against any Party. Any term referencing time, days or period for performance shall be deemed calendar days and not work days. All references to Consultant include all personnel, employees, agents, and subconsultants of Consultant, except as otherwise specified in this Agreement. All references to City include its elected officials, officers, employees, agents, and volunteers except as otherwise specified in this Agreement. The captions of the various articles and paragraphs are for convenience and ease of reference only, and do not define, limit, augment, or describe the scope, content, or intent of this Agreement.

3.10 Amendment; Modification. No supplement, modification, or amendment of this Agreement shall be binding unless executed in writing and signed by both Parties.

3.11 Waiver. No waiver of any default shall constitute a waiver of any other default or breach, whether of the same or other covenant or condition. No waiver, benefit, privilege, or service voluntarily given or performed by a Party shall give the other Party any contractual rights by custom, estoppel, or otherwise.

3.12 No Third Party Beneficiaries. There are no intended third party beneficiaries of any right or obligation assumed by the Parties.

3.13 Invalidity; Severability . If any portion of this Agreement is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect.

3.14 Prohibited Interests. Consultant maintains and warrants that it has not employed nor retained any company or person, other than a bona fide employee working solely for Consultant, to solicit or secure this Agreement. Further, Consultant warrants that it has not paid nor has it agreed to pay any company or person, other than a bona fide employee working solely for Consultant, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. For breach or violation of this warranty, City shall have the right to rescind this Agreement without liability.

For the term of this Agreement, no member, officer or employee of City, during the term of his or her service with City, shall have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom.

3.15 Equal Opportunity Employment . Consultant represents that it is an equal opportunity employer and it shall not discriminate against any subconsultant, employee or applicant for employment because of race, religion, color, national origin, handicap, ancestry, sex or age. Such non -discrimination shall include, but not be limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination. Consultant shall also comply with all relevant provisions of City’s Minority Business Enterprise program, Affirmative Action Plan or other related programs or guidelines currently in effect or hereinafter enacted.
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3.16 Labor Certification . By its signature hereunder, Consultant certifies that it is aware of the provisions of Section 3700 of the California Labor Code which require every employer to be insured against liability for Worker’s Compensation or to undertake self - insurance in accordance with the provisions of that Code, and agrees to comply with such provisions before commencing the performance of the Services.

3.17 Authority to Enter Agreement. Consultant has all requisite power and authority to conduct its business and to execute, deliver, and perform the Agreement. Each Party warrants that the individuals who have signed this Agreement have the legal power, right, and authority to make this Agreement and bind each respective Party.

3.18 Counterparts. This Agreement may be signed in counterparts, each of which shall constitute an original.

3.19 Declaration of Political Contributions. Consultant shall, throughout the term of this Agreement, submit to City an annual statement in writing declaring any political contributions of money, in-kind services, or loan made to any member of the City Council within the previous twelve-month period by the Consultant and all of Consultant’s employees, including any employee(s) that Consultant intends to assign to perform the Services described in this Agreement.

3.20 Subcontracting.

3.20.1 Prior Approval Required. Consultant shall not subcontract any portion of the work required by this Agreement, except as expressly stated herein, without prior written approval of City. Subcontracts, if any, shall contain a provision making them subject to all provisions stipulated in this Agreement.
[Signatures on following page.]

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SIGNATURE PAGE TO PROFESSIONAL SERVICES AGREEMENT

BETWEEN THE CITY OF ALISO VIEJO AND ADVANTEC CONSULTING ENGINEERS, INC.

IN WITNESS WHEREOF, the parties have executed this Professional Services Agreement on this ____ day of __________, 2025.

CITY OF ALISO VIEJO

Approved:

By:

Mitzi Ortiz
City Manager

ATTEST:

By: _______________________________
Janet Martinez
City Clerk
APPROVED AS TO FORM:
______________________________
Best Best & Krieger LLP
City Attorney

APPROVED AS TO COMPLIANCE

WITH BUDGET
By:

Ann Eifert
Director of Financial Services

ADVANTEC CONSULTING ENGINEERS,
INC.

[If Corporation, TWO SIGNATURES,
President OR Vice President AND Secretary
OR Treasurer REQUIRED]
By:

Its:

Printed Name:

By:

Its:

Printed Name:_________________________

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CITY OF ALISO VIEJO

DECLARATION OF POLITICAL CONTRIBUTIONS
Using the space provided below, please list any political contributions of money, in -kind services, or loans made to any member of the City Council within the last twelve (12) months by Consultant and all of Consultant’s employees, including any employee(s) that applicant intends to assign to perform the work or services described in this Agreement:

To the best of my knowledge, I declare under penalty of perjury that the foregoing is true and was executed at:

City/County/State Date

Name of Business Print Name

Signature
NOTE: THIS DECLARATION IS INCLUDED AS PART OF THE AGREEMENT AND MUST BE SIGNED AND ATTACHED HERETO.
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CITY OF ALISO VIEJO

ACKNOWLEDGMENT OF RECEIPT OF FRAUD POLICY
I hereby acknowledge that I have received a copy of the City’s “Fraud Prevention Policy” dated October 1, 2008. I understand that I am to promptly read its contents and distribute copies to employees assigned to perform Services for the City of Aliso Viejo.

To the extent that provisions of this policy conflict with previously issued policies or practices, whether or not such policies and practices were contained in written policies, this policy shall prevail.

Name of Business Print Name

Signature

Date

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A-1

EXHIBIT “A”

SCOPE OF SERVICES
General On-Call Traffic Engineering Services

General On-Call Traffic Engineering Services tasks shall include, but are not limited to:

• Conduct or review traffic engineering studies, traffic operations analysis, traffic safety, and transportation planning studies or project specific traffic analyses; • Develop alternative analysis and preliminary engineering design; • Conduct traffic calming analysis and design;
• Provide traffic engineering data collection support – traffic counts, pedestrian counts, intersection turning movement counts, speed surveys, etc... • Provide traffic control device studies and design (signs, signals, pavement markings, electronic speed feedback signs and pedestrian beacons); • Perform technical studies to support Active Transportation Programs; • Review subdivision or new development projects involving traffic impact analyses, parking studies, transportation modeling, VMT, and area-wide transportation studies; o Review time shall be within 2 weeks of initial submittal and within 1 week for subsequent submittals.
• Design traffic signal system including plans, specifications, engineer’s cost estimate and contract bid documents for new permanent signal installation; modifications to existing signals, signal interconnect installation and support for potential Traffic Management Center (TMC);
• Design bike facilities and/or active transportation related projects; • Prepare or review stage construction and worksite traffic control plans; • Provide Construction management and inspection support for transportation projects; • Assist and provide technical assistance in identification and preparation of various traffic and roadway improvement grant applications and management; • Provide updates to the City’s fiber master plan and local signal synchronization plan; • Provide support for regional traffic signal synchronization projects;. • Traffic engineering services not specifically identified in previous subtasks may be performed by the Consultant at the direction of the City Engineer.

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B-1

EXHIBIT “B”

SCHEDULE OF SERVICES
In the event that this Agreement is renewed pursuant to Section 3.1.2, the first renewal period shall be from July 1, 202 8 to June 30, 202 9. The second renewal period shall be from July 1, 2029 to June 30, 2030.
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C-1

EXHIBIT “C”

COMPENSATION
See attached.

In the event that this Agreement is renewed pursuant to Section 3.1.2, the rates set forth above may be adjusted each year at the time of renewal described in Exhibit “B” in accordance with the annual average Consumer Price Index of the prior calendar year , All Urban Consumers, Los Angeles-Long Beach-Anaheim up to a maximum percentage of five percent (5%).

186
ADVANTEC Consulting Engineers

1200 Roosevelt | Irvine | CA 92620
T 949.861.4999 F 949.502.5522 www.advantec-usa.com

Hourly Rates
Effective January 2025

Classification Rate
Principal $390 / hour
Senior Project Manager/Senior Engineer VIII $330 / hour Senior Project Manager/ Senior Engineer VII $270 / hour Project Manager/ Senior Engineer VI $230 / hour
Project Manager/ Engineer V-3 $210 / hour
Project Manager/ Engineer V-2 $190 / hour
Project Manager/ Engineer V-1 $170 / hour
Associate Engineer IV $150 / hour
Associate Engineer III $140 / hour
Assistant Engineer II $130 / hour
Assistant Engineer I $115 / hour
Administrative III $150 / hour
Administrative II $125 / hour
Administrative I $105 / hour

Direct Costs

Effective January 2025

Mileage Current Rate per IRS
In House Plotting (Mylar) $20.00 per D-size sheet
In House Plotting (Bond) $10.00 per D-size sheet
Other Direct Costs At Cost + 10% admin

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City of Aliso Viejo

COUNCIL POLICY

SUBJECT

FRAUD PREVENTION POLICY

RES. NO.

2005-
056
POLICY NO.

400-15
EFF. DATE

10/01/2008
PAGE

1 of 8

PURPOSE

To establish Policy and procedures for the prev ention and detection of fraud and other related dishonest activities against th e City and, when appropriate, to pursue legal remedies available under the law.

This Policy has been established to ensure that elected officials, officers, employees, and members of advisory boards, commissions and committees of the City of Alis o Viejo are aware of the following:

1. Acts that are considered to be fraudulent;

2. Procedures for reporting suspected fraudulent acts;

3. Steps to be taken when fraud or other rela ted dishonest activities are suspected; and

4. Consequences to expect when a dishonest act is reported.

Further, this Policy delineates management’s responsibility for instituting and maintaining a system of internal control to prevent and detect fraud, misappropriations and other irregularities, and to be alert for any indications of such misconduct.

POLICY

1. GENERAL

The City of Aliso Viejo is committed to protecting its assets against the risk of loss or misuse.

Accordingly, it is the policy of the City to identify and promptly investig ate any possibility of fraudulent or related dishonest ac tivities against the City and, w hen appropriate, to pursue legal remedies available under law.

2. DEFINITIONS

a. Fraud
– Fraud and other similar irregularities including, but not limited to:

i. claim for reimbursement of expenses that are not job-related or authorized by current policy;

ii. forgery or unauthorized alteration of doc uments (checks, time sheets, independent contractor agreements, purchase orders, budgets, etc.); 188

City of Aliso Viejo

COUNCIL POLICY

SUBJECT

FRAUD PREVENTION POLICY

RES. NO.

2005-
056
POLICY NO.

400-15
EFF. DATE

10/01/2008
PAGE

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iii. misappropriation of City assets (funds, securi ties, supplies, furniture, equipment, etc.);

iv. improprieties in the handling or reporting of money or financial transactions;

v. authorizing or receiving payment for goods not received or services not performed;

vi. computer-related activity involving unauthor ized alteration, destruction, forgery, or manipulation of data or misappropriation of City-owned software;

vii. misrepresentation of information on documents;

viii. any violation of Federal, State, or Local laws related to dishonest activities or fraud;

ix. seeking or accepting anything of material value from those doing business with the City, including vendors, consultants, contract ors, lessees, applicants, and grantees.

Materiality is determined by t he City’s Conflict of Interest Code, which incorporates the Fair Political Practices Commission’s regulations;

x. obtaining profit or personal ga in as a result of “insider” knowledge of City activities;

xi. disclosing confidential and proprietary information to outside parties; or

xii. Intentional, false representation or concealment of material fact for the purpose of personal gain.

b. Employee
– Any individual or group of individuals who receive co mpensation, either full or part-time, from the City of Alis o Viejo for employment or prov iding services. The term also includes any volunteer who provides services to the City through an official arrangement with the City or a City organization, as well as cons ultants, vendors, contra ctors, outside agencies and/or any other parties with a business relationship with the City of Aliso Viejo.

c. Official
- Elected officials, officers, and me mbers of advisory or appointed boards, commissions and committees.

d. Management – Any administrator, manager, director , supervisor, or other individual who manages or supervises funds or other resources, including human resources.

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SUBJECT

FRAUD PREVENTION POLICY

RES. NO.

2005-
056
POLICY NO.

400-15
EFF. DATE

10/01/2008
PAGE

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e. Internal Auditor – Any person or persons assigned by the City Manager to investigate any fraud or similar activity.

f. External Auditor – Independent audit prof essionals who perform annual audits of the City’s financial statements.

3. INVESTIGATION

a. It is the City’s intent to fu lly investigate any suspected acts of fraud. An objective and impartial investigation will be conducted regardless of the posit ion, title, length of service or relationship with the City of any party who mi ght be or become involv ed in or becomes the subject of such investigation.

b. Each department of the Ci ty is responsible for institut ing and maintain ing a system of internal control to provide r easonable assurance for the prev ention and detection of fraud.

Management should be familiar with the types of improprieties that might occur within their area of responsibility and be alert for any indications of such conduct.

c. The Internal Auditor, in conjunction with the City Attorney, has the primary responsibility for the investigation of fraud.

d. Throughout the investigation, the Internal Auditor will info rm the City Manager of pertinent investigative findings.

e. Employees will be gr anted “whistle-blower protection,” as described below when acting in accordance with this Policy. When informed of suspected fraud, neither the City nor any person acting on behalf of the City shall:

i. dismiss or threaten to dismiss the Employee reporting the suspected fraud;

ii. discipline, suspend, or th reaten to discipline or sus pend the Employee reporting the suspected fraud;

iii. impose any penalty upon the Employee reporting the suspected fraud, or;

iv. intimidate or coerce the Employ ee reporting the suspected fraud.

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SUBJECT

FRAUD PREVENTION POLICY

RES. NO.

2005-
056
POLICY NO.

400-15
EFF. DATE

10/01/2008
PAGE

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Violations of these “whistle-blower protections” may result in discipline up to and including dismissal.

f. Upon conclusion of the investigation, the results will be reported to the City Manager.

g. The City Manager, following review of investi gation results, will take appropriate disciplinary action regarding Employee misconduct. Discipl inary action can include termination of employment or a contract, and referral of the case to the District Attorney’s Office for possible prosecution.

h. The City will pursue every r easonable effort, including court or dered restitution, to obtain recovery of City losses from the offender, or other appropriate sources.

PROCEDURE

1. RESPONSIBILITIES OF OFFICIALS

a. If an Official has reason to su spect that a fraud has occurred, he or she shall immediately contact the City Manager.

b. An Official shall not attempt to investi gate the suspected fraud or discuss the matter with anyone other than the City Manager.

c. The alleged fraud or audit in vestigation shall not be di scussed with the media by any person other than through the City Manager in consultation with the City Attorney and the Internal Auditor.

2. MANAGEMENT RESPONSIBILITIES

a. Management is responsible for detecting, pr eventing and reporting frau d in their areas of responsibility.

b. Each manager should be familiar with the types of fraud t hat might occur in his or her area and be alert for any indication that fraud is or was in existence in his or her area.

c. When fraud is detected or suspected, M anagement should determine whether an error or mistake has occurred or if there may be dishonest or fraudulent activity.

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SUBJECT

FRAUD PREVENTION POLICY

RES. NO.

2005-
056
POLICY NO.

400-15
EFF. DATE

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PAGE

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d. If Management determines a suspected activity may involve fraud, they should contact their immediate supervisor. In the event the acti vity involves the immediate supervisor, the activity should be reported to the Department Director.

e. Upon being notified of su spected fraud, Department Direc tors shall inform the City Manager.

f. Management should not attempt to conduct in dividual investigations, interviews, or interrogations. However, Management is re sponsible for taking appropriate corrective actions to ensure adequate controls exist to prevent reoccurrences of fraud.

g. Management shall cooperate fully with the Inte rnal Auditor, other involved departments, and law enforcement agencies in the detection, reporting, and investigation of fraud, including the prosecution of offenders.

h. Management will have full and unrestricted access to all necessary records and personnel.

All City furniture and c ontents, including desks and computer s, are open to inspection at any time. There is no assumption of privacy.

i. In dealing with suspected fr aud, great care must be taken. Management should not:

i. make accusations;

ii. alert individuals suspected of committi ng fraud that an investigation is underway;

iii. treat individuals suspected of committing fraud unfairly, or;

iv. make statements that could lead to claims of false accusations or other offenses.

j. In handling suspected fraud activities , Management has the responsibility to:

i. make no contact (unless requested) with the individual suspected of committing fraud to determine facts or demand restitution. U nder no circumstances should there be any reference to “what you did”, “the crime”, “the fraud”, “the misappropriation”, etc.;

ii. avoid discussing the case, fa cts, suspicions, or allegations with anyone outside the City, unless specifically directed to do so by the City Attorney;

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City of Aliso Viejo

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SUBJECT

FRAUD PREVENTION POLICY

RES. NO.

2005-
056
POLICY NO.

400-15
EFF. DATE

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PAGE

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iii. avoid discussing the case with anyone in side the City other than the City Manager, Internal Auditor, or City Attorney or law enforcement personnel;

iv. direct all inquiries from the individual suspected of co mmitting fraud, or his or her representative, to the City M anager or City Attorney. All inquiries by an attorney representing the individual suspected of committing fraud should be directed to the City Attorney. All inquiries from the media should be directed to the City Manager, and;

v. take appropriate corrective and disciplinar y action, up to and including dismissal, if authorized by and in conformance with the City’s personnel policies.

3. EMPLOYEE RESPONSIBILITIES

a. Employees should report detected or sus pected fraud to the Employee’s supervisor.

b. In the event the suspected fraud involves the Employee’s immediate supervisor, the Employee shall make the report directly to the next higher level of Management and/or the City Manager.

c. The reporting Employee shall refr ain from further investigation of the incident, confrontation with the alleged violator, or further discussion of the incident with anyone, unless requested by the City Manager, Internal Auditor, City Attorney, or law enforcement personnel.

4. INTERNAL AUDITOR RESPONSIBILITIES

a. Upon assignment by the City Manager, the Inte rnal Auditor will promptly investigate the fraud.

b. In all circumstances wher e there appears to be reasonable gr ounds for suspecting that a fraud has taken place, the Internal Auditor, in consultation with the City Attorney, will contact appropriate law enforcement personnel.

c. The Internal Auditor shall be available and receptive to receiving relevant, confidential information to the extent allowed by law.

d. If evidence is uncovered showing possible fraud, the Internal Auditor will proceed as follows:

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City of Aliso Viejo

COUNCIL POLICY

SUBJECT

FRAUD PREVENTION POLICY

RES. NO.

2005-
056
POLICY NO.

400-15
EFF. DATE

10/01/2008
PAGE

7 of 8
i. discuss the findings with Management and t he City Manager to dete rmine if disciplinary actions should be taken;

ii. report to the External Audito r such activities in order to assess the effect of the fraud activity on the City’s financial statements;

iii. coordinate with Managem ent regarding notification to insurers and filing of insurance claims;

iv. take immediate action, in consultation wit h the City Attorney, to prevent the theft, alteration, or destruction of evidentiary record s. Such action shall include, but is not limited to:

(A) removing the records and placing them in a secure location, or limiting access to the location where the records currently exist, and;

(B) preventing the individual suspected of committing the fraud from having access to the records.

e. In consultation with the City Attorney and appropriate law enforcement personnel, the Internal Auditor may disclose particulars of the investigation with potential witnesses if such disclosure would further the investigation.

f. If the Internal Auditor is contacted by the media regar ding an alleged fraud or investigation, the Internal Auditor will direct all inquiries to the City Manager.

g. At the conclusion of the in vestigation, the Internal Audito r will document the results in a confidential memorandum report to the City Manager and the City Attorney. If the report concludes that the allegations are supported by evidence, the report will be forwarded to appropriate law enforcement personnel.

h. Unless exceptional circumstances exist, a per son under investigation for fraud is to be given notice in writing of essent ial particulars of t he allegations following the conclusion of the investigation. Where not ice is given, the person agains t whom allegations are being made may submit a written expl anation to the Internal Auditor no later than seven (7) calendar days after notice is received.

i. The Internal Auditor shall make recomm endations to the appropria te department for 194

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SUBJECT

FRAUD PREVENTION POLICY

RES. NO.

2005-
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POLICY NO.

400-15
EFF. DATE

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assistance in the prevention of future similar occurrences.

j. Upon completion of the investigation, includ ing all legal and personnel actions, all records, documents, and other evidentiary materi al, obtained from the department under investigation will be returned by the Internal Auditor to that department.

DISCIPLINARY ACTIONS

Any Employee found to be responsible for fraud or who knowingly makes false allegations in violation of this Policy shall be subject to a ppropriate disciplinary action, up to and including termination of employment and/or te rmination of the contract. Th e severity of the disciplinary action will be based upon the circumstances of t he violation and in accordance with the City’s personnel policies. The City will assess any re medial measures necessary to address and correct the circumstance and pr event reoccurrence in the futu re. Remedial measures may include, but are not limited to , disciplinary action, reorganizati on of personnel, training and education, counseling and/or other employee assistance.

EXCEPTIONS

There will be no exceptions to this Policy unle ss provided and approved by the City Manager and the City Attorney.

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CITY OF ALISO VIEJO

ACKNOWLEDGMENT OF RECEIPT OF FRAUD POLICY

I hereby acknowledge that I have received a copy of the City’s “Fraud Prevention Policy” dated October 1, 2008. I understand that I am to promptly read its contents and di stribute copies to employees assigned to perform Services for the City of Aliso Viejo.

To the extent that provisions of this policy conf lict with previously issued policies or practices, whether or not such policies and practices were contained in written policies, this policy shall prevail.

Name of Business Print Name

Signature

Date

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City of Aliso Viejo

AGENDA ITEM

DATE: June 18, 2025

TO: Mayor and City Council

FROM: Shaun Pelletier, Public Works Director / City Engineer

SUBJECT: AGREEMENT WITH ITERIS, INC. ON -CALL TRAFFIC ENGINEERING

SERVICES FOR TRAFFIC SIGNAL OPERATIONS
______________________________________________________________________

Recommended Actions:

1. Approve an agreement with Iteris, Inc. to perform on -call traffic engineering services for traffic signal operations; and

2. Authorize the City Manager to execute a professional services agreement with Iteris, Inc. for an amount not to exceed $200,000.

Fiscal Impact:

The cost of the requested work is expected to be $50,000 a year for the initial 3-year term to perform traffic signal operations services. This is budgeted in the FY 2025-26 budget.

Within the initial three-year term, the City has applied for and anticipates being awarded funding for two sync hronization projects through OCTA. The anticipated consultant fee for those services is expected to be up to $50,000 and will be included in future CIP budgets, if awarded.

Background:

The City utilizes the services of on -call traffic engineering consultants for traffic signal operations services to monitor the City’s traffic signal system. This service differs from the broader on-call traffic engineering scope in that it requires speci alized experience in working with traffic signal systems.

The City currently maintains and operates 4 8 signalized intersections. The City utilizes traffic signal controllers that are capable of being monitored offsite through a phone modem and fiber ne twork. Also, some traffic signals are synchronized to improve the flow of traffic through the City’s arterial roadways.

An RFP for on-call traffic engineering services was released on March 17, 2025 and was due on April 16, 2025. Four firms submitted proposals for this service and were ranked by a panel as follows:
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