Apple Valley City Council
June 28, 2022

APPLE VALLEY TOWN COUNCIL
AGENDA

Tuesday, June 28, 2022, 6:30 p.m.

Council Chamber

PLEASE SILENCE CELL PHONES UPON ENTERING THE CHAMBER

FOR INDIVIDUALS NOT PHYSICALLY PRESENT AND STILL WISHING TO MAKE PUBLIC COMMENTS, YOU MAY COMMENT IN ONE OF TWO WAYS: 1) COMMENTS AND CONTACT INFORMATION CAN BE EMAILED TO [email protected] TO BE INCLUDED IN THE RECORD; 2) A REQUEST TO SPEAK CAN BE EMAILED TO THE SAME

ADDRESS AS ABOVE AND AT THE TIME OF THE REQUESTED AGENDA ITEM, THE TOWN

CLERK WILL PLACE A PHONE CALL TO THE COMMENTER AND ALLOW THEM TO SPEAK TO

THE COUNCIL VIA SPEAKER PHONE DURING THE LIVE MEETING FOR UP TO THREE MINUTES.

The meeting will occur in the Council Chamber located at 14955 Dale Evans Parkway in Apple Valley, California.

This is an agenda for the scheduled meeting of the Town of Apple Valley.

This agenda contains a brief description of each item of business to be considered at today’s meeting. In accordance with the Brown Act, this meeting agenda is posted at least 72 hours prior to the regularly scheduled meeting. The agenda, its supporting documents and all writings received by the Town Council related to these items are public records and available for review during regular business hours in the Town Clerk’s office in the Town Council Chamber. The agenda and its supporting documents, along with live and archived video of the meeting, can be viewed online at http://www.applevalley.org. However, the online agenda may not include all available supporting documents or the most current version of documents.

Materials related to an item on this agenda submitted to the Council after distribution of the agenda packet are available for public inspection in the Town Clerk’s Office at 14955 Dale Evans Parkway, Apple Valley, CA during normal business hours. Such documents are also available on the Town of Apple Valley website at www.applevalley.org subject to staff’s ability to post the documents before the meeting.

Items listed on the Consent Calendar are expected to be routine and non-controversial and, unless the Town Council directs that an item be held for further discussion, the entire Consent Calendar will be acted upon as the first item of business. If the Town Council directs that an item listed on the Consent Calendar be held for further discussion, the item will be addressed immediately after approval of the Consent Calendar.

In accordance with the Rules of Procedure, members of the public may address the Town Council on any item on the agenda and on any matter that is within the Town Council’s jurisdiction. To address the Town Council regarding an item, complete and submit the yellow card entitled Request to Speak.

Please indicate on the card whether you are speaking under Public Comments or on an item that is listed on the agenda and please list the item number.

When called, approach the podium and if desired, please state your name before giving your presentation. Speakers may address the Town Council for up to three (3) minutes. Speakers are to address the Town Council as a whole through the Presiding Officer. Comments to individual Council Members and/or staff are not permitted.

Individuals, who demonstrate disruptive conduct during Town Council meetings that prevent the Town Council from conducting its meeting in an orderly manner, are guilty of a misdemeanor as stated in PC403, disrupting a public meeting and are subject to removal from the chamber or arrest.

The Town of Apple Valley recognizes its obligation to provide equal access to those individuals with disabilities. Please contact the Town Clerk’s Office at (760) 240-7000 two working days prior to the scheduled meeting for any requests for reasonable accommodations.

Pages

1. Call to Order

2. Opening Ceremonies

2.1. Invocation
Pastor Simpson - Spirit Life Church

2.2. Pledge of Allegiance

2.3. Presentations

2.3.1. SPECIAL RECOGNITION - TOWN OF APPLE VALLEY

EMPLOYEES

3. Public Comments

4. Councilmember Committee/Commission/Community Participation 8 Councilmembers to make brief reports on their participation on committees, boards, and commissions on the Town’s behalf since the last meeting.

Councilmembers may also make brief reports on their community participation.

No formal action will be taken.

5. Town Council Announcements

5.1. Suggested items for next Agenda

5.2. Time, Date & Place for Next Town Council Regular or Special Meeting A. Regular Meeting - July 12, 2022 - Council Chambers Regular Session at 6:30 p.m.

6. Town Council Consent Agenda
Recommended Motion:

To approve the Consent Calendar items numbered 6.1-6.6 as recommended.

6.1. APPROVAL OF MINUTES 10
That the Town Council approve the subject minutes as part of the consent agenda.

6.2. CALLING AND GIVING NOTICE OF THE HOLDING OF A GENERAL MUNICIPAL ELECTION TO BE HELD ON TUESDAY, NOVEMBER 8,
2022
17 Adopt Resolution No. 2022-22 of the Town Council calling and giving notice of the holding of a General Municipal Election for the election of certain officers as required by the provision of the laws of the State of California relating to General Law Cities.

A.

Adopt Resolution No. 2022-23 Requesting consolidation with the General Municipal Election with the San Bernardino County Registrar of Voters.

B.

6.3. ADOPT RESOLUTION NO. 2022-24 ADOPTING REGULATIONS FOR

CANDIDATES FOR ELECTIVE OFFICE PERTAINING TO CANDIDATE

STATEMENTS FOR THE GENERAL MUNICIPAL ELECTION,
NOVEMBER 8, 2022
23 Adopt Resolution No. 2022-24, adopting regulations for candidates for elective office pertaining to candidate statements submitted to the voters at an election on November 8, 2022.

6.4. ACCEPT THE FINAL MAP FOR PARCEL MAP NO. 20371 26
APPLICANT: CORNERSTONE CONSTRUCTION CO.

Move to accept the final map Parcel Map No. 20371

6.5. AWARD 2023 ENGINEERING AND TRAFFIC SURVEY 37
Award a Professional Services Agreement to KOA Corporation for the 2023 Engineering and Traffic Survey subject to “Approval as to Form” by the Town Attorney and “Approval as to Content” by the Town Manager.

6.6. A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF APPLE

VALLEY AMENDING THE CLASSIFICATION AND SALARY PLAN FOR

THE TOWN OF APPLE VALLEY
61 Approve Resolution No. 2022-25, A Resolution of the Town Council of the Town of Apple Valley, California, amending the current Classification and Salary Plan and Grade and Step Plan.

7. Public Hearings

7.1. INTRODUCE ORDINANCE NO. 556 AN ORDINANCE OF THE TOWN

COUNCIL OF THE TOWN OF APPLE VALLEY, CALIFORNIA,
AMENDING SECTIONS 1.01.170 AND 1.01.200 OF CHAPTER 1.01 OF

THE TOWN OF APPLE VALLEY MUNICIPAL CODE RELATED TO

ADMINISTRATIVE CITATION PROVISIONS
73 REGARDING BUILDING, PLUMBING, ELECTRICAL, OR OTHER

SIMILAR STRUCTURAL OR ZONING ISSUES, AND ILLEGAL
CULTIVATION OF CANNABIS; AND FINDING THE ACTION EXEMPT

FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT
Find that the proposed adoption of Ordinance No. 556 is not subject to and is Exempt from CEQA, based upon findings under CEQA Guidelines, Section 15061 Sub (b)(3) that can be seen with certainty that there is no possibility that the proposed amendment may have a significant effect on the environment.

A.

Move to waive the reading of Ordinance No. 556 in its entirety and read by title only.

B.

Move to Introduce Ordinance No.556 amending sections

1.01.170 and 1.01.200 of Chapter 1.01 of the Town of Apple Valley Municipal Code related to administrative citations provisions regarding building, plumbing, electrical, or other similar structural or zoning issues, and illegal cultivation of marijuana; and finding the action exempt from the California Environmental Quality Act.

C.

D. Direct Staff to file a Notice of Exemption.

7.2. REVIEW OF THE FISCAL YEAR 2022-2023 STATEMENT OF

INVESTMENT
80 Adopt Resolution No. 2022-19 approving the Statement of Investment Policy for Fiscal Year 2022-2023 and delegating the investment activities to the Town Treasurer.

7.3. ADOPTION OF FISCAL YEAR 2022-2023 APPROPRIATIONS LIMIT 128 Adopt Resolution No.2022-27 of the Town Council of the Town of Apple Valley, California, establishing the Fiscal Year 2022-2023 Appropriations Limit for the Town at $47,944,206 by using the Town’s population growth for the population adjustment and the California per capita income growth for the inflationary adjustment.

7.4. A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF APPLE

VALLEY, CALIFORNIA, APPROVING BUDGET APPROPRIATIONS

AND ADOPTING THE OPERATING AND CAPITAL IMPROVEMENT
BUDGET FOR ALL FUNDS FOR FISCAL YEAR 2022-2023
132
Adopt Resolution No. 2022-26 of the Town Council of the Town of Apple Valley, California, approving a budget appropriation and adopting the budget, including the operating and capital improvement budget for all funds for Fiscal Year 2022-2023.

8. Business of the Council

8.1. INTRODUCE ORDINANCE NO. 557 – AN ORDINANCE OF THE TOWN

COUNCIL OF THE TOWN OF APPLE VALLEY, CALIFORNIA,

AMENDING THE TOWN OF APPLE VALLEY MUNICIPAL CODE TITLE
11, BY ADDING CHAPTER 11.120, SECTION 11.120.010 “UNLAWFUL POSSESSION OF CATALYTIC CONVERTERS”
140
AND AMENDING SECTION 5.02.360 – DAILY REPORTS AND
PURCHASE FORMS; AND FINDING THE ACTION EXEMPT FROM

THE CALIFORNIA ENVIRONMENTAL QUALITY ACT
Find that the proposed adoption of Ordinance No. 557 is not subject to and is exempt from CEQA based upon a finding that, under section 15061(b)(3) of the CEQA Guidelines, it can be seen with certainty that there is no possibility that the proposed amendment may have a significant effect on the environment.

A.

Move to waive the reading of Ordinance No. 557 in its entirety and read by title only.

B.

Move to introduce Ordinance No. 557 amending Title 11 of the Town of Apple Valley Municipal CoDe and adding Chapter

11.120 "Unlawful Possession of Catalytic Converters" and amending section 5.02.360 “Daily Reports and Purchase
Forms,” establishing regulations prohibiting the unlawful possession of catalytic converters in the Town.

C.

D. Direct staff to file a Notice of Exemption.

8.2. REQUEST TO ALLOW OVERHEAD POWER LINES, SNIPE

EQUIPMENT, LLC
147
Provide Staff with direction regarding a request to allow overhead utility poles and lines to remain in vicinity of the proposed Snipe Equipment, LLC Facility located at 17077 Navajo Road, Apple Valley.

9. Reports, Requests and Communications

10. Town Manager’s Comments & Legislative Update

11. Closed Session

11.1. CLOSED SESSION 157
CONFERENCE WITH REAL PROPERTY NEGOTIATORS (Per
Government Code section 54956.8):

Property: APNs 0399-261-01 & 0399-261-08 (vacant
land south of Bear Valley Road and Bridge)
Agency Negotiator: town Manager or Designee
Negotiating Parties: Jess Ranch Development Company, Inc.

Under Negotiation: Price and Terms of Payment for Easement Rights
CONFERENCE WITH REAL PROPERTY NEGOTIATORS (Per
Government Code section 54956.8):

Property: APN 0444-411-13 (18870 Outer Bear Valley
Rd)
Agency Negotiator: Town Manager or Designee
Negotiating Parties: Trevor D. Lyons and Ramona M. Lyons, husband and wife and Holly Marie Manson, a Single Woman, all as Joint Tenants
Under Negotiation: Price and Terms of Payment for Easement Rights
CONFERENCE WITH REAL PROPERTY NEGOTIATORS (Per
Government Code section 54956.8):

Property: APN 0444-121-18 (vacant land north of Bear
Valley Road at the NW corner of the Bridge)
Agency Negotiator: Town Manager or Designee
Negotiating Parties: San Bernardino County Flood Control District Under Negotiation: Price and Terms of Payment for Easement Rights
CONFERENCE WITH REAL PROPERTY NEGOTIATORS (Per
Government Code section 54956.8):

Property: APN 0482-022-06 (vacant land north of Bear
Valley Road at the NE corner of the Bridge)
Agency Negotiator: Town Manager or Designee

Negotiating Parties: Victorville Valley Community College District Under Negotiation: Price and Terms of Payment for Easement Rights

12. Adjournment
Recommended Motion:

To adjourn the meeting of the Apple Valley Town Council at TIME.

TOWN OF APPLE VALLEY

TOWN COUNCIL SERVING ON BOARDS, COMMITTEES & COMMISSIONS

CITIZEN ADVISORY COMMITTEES

HISTORICAL ADVISORY COMMITTEE (HAC)
Council Member Cusack
Meets every 2nd Tuesday of each month at 9:00 a.m.,
(location may vary)

SPECIAL ADVISORY COMMITTEES
DISASTER PREPAREDNESS*
Mayor - Chairman
Meets quarterly at 1:30 p.m., Town of Apple Valley
Conference Center - Development Services Building
14975 Dale Evans Parkway, Apple Valley.

TRAFFIC ADVISORY COMMITTEE (TAC)
Council Member Nassif
As needed.

Town Council Chambers

TOWN PERSONNEL COMMITTEE
Council Member Nassif
Mayor Pro Tem Bishop
Meets as Needed

PARK AND RECREATION ADVISORY COMMITTEE
Council Member Nassif
Council Member Emick

AD HOC COMMITTEES

APPLE VALLEY ROAD AD HOC COMMITTEE
Council Member Nassif

VILLAGE MERCHANTS AD HOC COMMITTEE
Council Member Emick

AGENCY - BOARDS/COMMITTEES &

COMMISSIONS

CALIFORNIA JOINT POWERS INSURANCE

AUTHORITY (CJPIA)
Council Member Nassif – Director
Exec. Committee meets every 4th Wednesday of each
month at 7:00 p.m., La Palma, CA.

HIGH DESERT CORRIDOR JOINT POWERS

AUTHORITY (HDCJPA)
Council Member Nassif – Director
Council Member Emick – Alternate
Meets every 2nd Thursday of each quarter at 2:00 p.m.
385 N. Arrowhead Ave, San Bernardino, CA

LEAGUE OF CALIFORNIA CITIES/DESERT

MOUNTAIN DIVISION (LOCC/DMD)
Council Member Nassif- Voting Delegate
Mayor Pro Tem Bishop – Alternate
Meets quarterly on the 4th Friday of every other month
at 10:00 a.m., rotating cities.

MOJAVE DESERT AIR QUALITY MANAGEMENT

DISTRICT (MDAQMD)
Mayor Leon-– Delegate
Council Member Emick – Alternate
Meets every 4th Monday of each month at 10:00 a.m.,
14306 Park Avenue, Victorville

MOJAVE DESERT AND MOUNTAIN RECYCLING

AUTHORITY
Council Member Cusack – Delegate
Mayor Pro Tem Bishop – Alternate
Meets quarterly on the 2nd Thursday February, May,
August and November at 10:00 a.m.
at the Materials Recovery Facility, 17000 Abbey Lane,
Victorville

SAN BERNARDINO COUNCIL OF GOVERNMENTS
(SBCOG)
Mayor Pro Tem Bishop - Board Member
Council Member Cusack – Alternate
Meets 1st Wednesday of each month at 10:00 a.m.,
1170 West 3rd St.

San Bernardino

SOLID WASTE ADVISORY TASK FORCE (SWAT)
Council Member Cusack – Committee Member
Julie Ryan - Alternate
Meets as needed on Wednesdays at 1:30 p.m.

Sam J. Racadio Library & Environmental Learning
Center Community Room 7863 Central Ave. Highland

VICTOR VALLEY ECONOMIC DEVELOPMENT

AUTHORITY (VVEDA)
(George Air Force Base Reuse Task Force)
Council Member Emick – Commissioner
Mayor Pro Tem Bishop – Alternate
Meets every 2nd Wednesday of each quarter at 5:00
p.m., SCLA

VICTOR VALLEY TRANSIT AUTHORITY (VVTA)
Council Member Emick – Representative
Mayor Leon - Alternate
Meets every 3rd Monday of each month at 9:30 a.m.,
Victorville City Hall

VICTOR VALLEY WASTE WATER RECLAMATION

AUTHORITY (VVWRA)
Council Member Nassif – Commissioner
Mayor Pro Tem Bishop – Alternate
Meets every 3rd Thursday at 7:30 a.m.

VVWRA Offices

APPLE VALLEY CHAMBER OF

COMMERCE

GOVERNMENTAL RELATIONS COMMITTEE
Mayor Pro Tem Bishop – Representative
Council Member Cusack – Alternate
*These Boards, Committees and
Commissions require the Mayor to serve
as the representative.

Town Council Agenda Report
Date: June 28, 2022
To: Honorable Mayor and Town Council
Subject: APPROVAL OF MINUTES

From: Douglas Robertson, Town Manager
Submitted by: La Vonda M-Pearson, Town Clerk
Budgeted Item: Yes No N/A

RECOMMENDED ACTION
That the Town Council approve the subject minutes as part of the consent agenda.

SUMMARY:

A. Regular Meeting June 14, 2022

1 Apple Valley Town Council

MINUTES
June 14, 2022, 6:30 p.m.

Council Chamber
Members Present: Council Member Larry Cusack
Council Member Curt Emick
Council Member Scott Nassif
Mayor Pro Tem Art Bishop
Mayor Kari Leon
_____________________________________________________________________

1. Call to Order
Mayor Leon called to order the regular session of the Apple Valley Town Council at 6:30pm.

2. Opening Ceremonies

2.1 Invocation
None.

2.2 Pledge of Allegiance
The Pledge of Allegiance was led by Council Member Bishop.

2.3 Presentations
Mayor's Weight Loss Challenge Results - David Coleman, Recreation Manager

3. Public Comments
None.

4. Councilmember Committee/Commission/Community Participation Councilmembers to make brief reports on their participation on committees, boards, and commissions on the Town’s behalf since the last meeting.

Councilmembers may also make brief reports on their community participation. No formal action will be taken.

2 Council Member Emick commented on committee meetings and events that he attended.

Council Member Cusack commented on committee meetings and events that he attended.

Council Member Nassif commented on committee meetings and events that he attended.

Mayor Pro Tem Bishop commented on committee meetings and events that he attended.

Mayor Leon commented on committee meetings and events that she attended.

5. Town Council Announcements

5.1 Suggested items for next Agenda
None.

5.2 Time, Date & Place for Next Town Council Regular or Special Meeting A. Regular Meeting - June 28, 2022 - Council Chambers Regular Session at 6:30 p.m.

6. Town Council Consent Agenda
Hannah Raleigh, Deputy Town Clerk, read the disclosure statement for specific warrants listed on the agenda.

Council Member Cusack has a remote interest in specific warrants on tonight’s Commercial Warrants dealing with Apple Valley Communications, AV Tech Services or AVCOM Services for the Town of Apple Valley as the owner of these businesses. Therefore, he will be recusing from voting on the warrants for Apple Valley Communications, AV Tech Services and AVCOM Services listed under Agenda Item Number 6.2. In addition, due to his interest in these businesses, Council Member Cusack will be recusing from voting on specific warrants listed under Agenda Item Number 6.2 because these entities are considered sources of income to his businesses. A list of business entities for Council Member Cusack is maintained on file in the Town Clerk’s Office and available for review at the dais.

Council Member Cusack confirmed that he would be recusing from voting on these warrants.

Council Member Nassif has a remote interest in specific warrants on tonight’s Commercial Warrants dealing with NAPA Auto Parts or High Desert Auto Supply for the Town of Apple Valley as the owner of these businesses. Therefore, he will

3 be recusing from voting on the warrants for NAPA Auto Parts and High Desert Auto Supply listed under Agenda Item Number 6.2. In addition, due to his interest in both businesses, Council Member Nassif will also be recusing from voting on specific warrants listed under Agenda Item Number 6.2 because these entities are considered sources of income to his businesses. A list of business entities for Council Member Nassif is maintained on file in the Town Clerk’s Office and available for review at the dais.

Council Member Nassif confirmed that he would be recusing from voting on these warrants.

Mayor Leon has a remote interest in specific warrants on tonight’s Commercial Warrants dealing with Solution Strategies and Christian Brothers as a landlord to these entities. Therefore, she will be recusing herself from voting on the warrants for these businesses.

Mayor Leon confirmed that she would be recusing from voting on these warrants.

Mayor Pro Tem Bishop asked questions regarding Agenda Item 6.7 regarding Muni Road Driveway and Box Culvert project.

Brad Miller, Town Engineer, presented the staff report as filed with the Town Clerk and addressed all questions made by the Council Members.

Motion by: Council Member Emick
Seconded by: Mayor Pro Tem Bishop
To approve the Consent Calendar items numbered 6.1 - 6.11 as recommended.

Yes (5): Council Member Cusack, Council Member Emick, Council Member Nassif, Mayor Pro Tem Bishop, and Mayor Leon
Carried (5 to 0)

6.1 APPROVAL OF MINUTES
That the Town Council approve the subject minutes as part of the consent agenda.

6.2 MAY 2022 COMMERCIAL WARRANTS AND WIRE TRANSFER

SCHEDULES
That the Town Council receive, ratify, and file the Commercial Warrants and Wire Transfer Schedules as presented.

4 6.3 MAY 2022 PAYROLL/BENEFITS WARRANTS SCHEDULE
That the Town Council receive, ratify and file the payroll/benefits warrants as presented.

6.4 QUARTERLY TREASURER'S REPORT – JANUARY – MARCH 2022 That Town Council receive and file the January-March 2022 Quarterly Treasurer’s Report.

6.5 AWARD OF CONTRACT, LANDSCAPE ASSESSMENT DISTRICT L-3

FENCING
Award a contract to All American Fence Erectors for the Landscape Assessment District L-3 Fencing Project, subject to “Approval as to Form” by the Town Attorney and “Approval as to Content” by the Town Manager.

6.6 AWARD OF CONTRACT, RIGHT OF WAY MAINTENANCE AND

STORM CLEANUP
Award a contract to Cooley Construction, Inc. for the Right of Way Maintenance and Storm Cleanup Contract, subject to “Approval as to Form” by the Town Attorney and “Approval as to Content” by the Town Manager.

6.7 CONSENT TO ADVERTISE THE MUNI ROAD DRIVEWAY AND BOX

CULVERT PROJECT
A. That the Town Council review and approve the bid documents for the Muni Road Driveway and Box Culvert project
B. That the Town Council authorize staff to solicit bids for construction of said project.

6.8 AMENDMENT NO. 8 TO THE WASTE DISPOSAL AGREEMENT

BETWEEN THE TOWN OF APPLE VALLEY AND THE COUNTY OF

SAN BERNARDINO
That the Town Council approve Amendment No. 8 to the Waste Disposal Agreement (WDA) between the Town of Apple Valley and the County of San Bernardino to cap the WDA rate at 85 percent (85%) of the gate rate.

6.9 BIENNIAL REVIEW OF THE TOWN OF APPLE VALLEY’S CONFLICT

OF INTEREST CODE TO COMPLY WITH THE POLITICAL REFORM
ACT

5 Direct the Town Manager or designee to review its code and submit a notice to the Town Council by October 1, 2022, that either amendments are required or that no amendments are necessary.

6.10 SECOND READING OF ORDINANCE NO. 555 AN ORDINANCE OF

THE TOWN COUNCIL OF THE TOWN OF APPLE VALLEY,
CALIFORNIA, AMENDING SECTION 3.08.050 OF CHAPTER 3.08 OF TITLE 3 OF THE TOWN OF APPLE VALLEY MUNICIPAL CODE

RELATING TO REPORTS
Adopt Ordinance No. 555

6.11 LIGHTING AND LANDSCAPE ASSESSMENT DISTRICT #1 –

ENGINEER'S ANNUAL REPORT AND LEVY OF ASSESSMENT FOR
FY 2022-2023
A. Adopt Resolution No. 2022-20, a Resolution of the Town Council of the Town of Apple Valley Directing the Filing of the Annual Report for the Town of Apple Valley Landscaping and Lighting Assessment District.

B. Receive and approve the engineer's report as filed, or as amended.

C. Adopt Resolution No. 2022-21, a Resolution of the Town Council of the Town of Apple Valley Declaring its Intention to Order Improvements and to Levy and Collect Assessments for Fiscal Year 2022-2023.

D. Direct the Town Clerk to publish the Resolution of Intention at least 10 days prior to the date of the public hearing.

7. Public Hearings

8. Business of the Council

8.1 BUDGET WORKSHOP 2022/2023
Receive and provide direction to staff.

Sydnie Harris, Director of Finance, presented the staff report as filed with the Town Clerk.

The Town Council each expressed concern with the property and sales tax revenues in the current economic climate.

Ms. Harris clarified that the increase in the public safety budget included the three deputies added after the start of the last fiscal year.

6 Discussion ensued regarding upcoming projects, revenue usage and property taxes.

It was the consensus of the Town Council to move forward with the FY 2022-2023 budget as presented.

9. Reports, Requests and Communications

10. Town Manager’s Comments & Legislative Update
Doug Robertson, Town Manager, informed the Town Council about upcoming events in the Town of Apple Valley.

11. Closed Session
None

12. Adjournment
Motion by: Mayor Leon
Seconded by: Council Member Nassif
To adjourn the meeting of the Apple Valley Town Council at 8:07pm.

Carried Unanimously
Kari Leon, Mayor Hannah Raleigh, Deputy Town
Clerk

Town Council Agenda Report
Date: June 28, 2022
To: Honorable Mayor and Town Council
Subject: CALLING AND GIVING NOTICE OF THE HOLDING OF A GENERAL MUNICIPAL ELECTION TO BE HELD ON TUESDAY, NOVEMBER 8,
2022

From: Douglas Robertson, Town Manager
Submitted by: La Vonda M-Pearson, Director of Government Services/ Town Clerk
Budgeted Item: Yes No N/A

RECOMMENDED ACTION
A. Adopt Resolution No. 2022-22 of the Town Council calling and giving notice of the holding of a General Municipal Election for the election of certain officers as required by the provision of the laws of the State of California relating to General Law Cities.

B. Adopt Resolution No. 2022-23 Requesting consolidation with the General Municipal Election with the San Bernardino County Registrar of Voters.

BACKGROUND
It is required under the provisions of the laws of the State of California that the Town Council call and give notice of the holding of a General Municipal Election to be held on November 8, 2022 for the election of certain officers by resolution.

Elections Code §10403 allows the Town to file a resolution with the County of San Bernardino requesting consolidation of the Municipal Election and all related election services with the County Election Department. Consolidating with the County is an efficient, cost-effective way to manage the election process.

Based on the foregoing, staff recommends adoption of the form resolution.

FISCAL IMPACT

Election expenses have been identified in the proposed Fiscal Year 2022-23 Government Services budget. Exact election costs will not be known until after the November election.

ATTACHMENTS
A. Resolution No. 2022-22
B. Resolution No. 2022-23

RESOLUTION NO. 2022-22

A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN

OF APPLE VALLEY, CALIFORNIA, CALLING AND GIVING

NOTICE OF THE HOLDING OF A GENERAL MUNICIPAL
ELECTION TO BE HELD ON TUESDAY, NOVEMBER 8,
2022, FOR THE ELECTION OF CERTAIN OFFICERS AS

REQUIRED BY THE PROVISIONS OF THE LAWS OF THE

STATE OF CALIFORNIA RELATING TO GENERAL LAW
CITIES
WHEREAS, under the provisions of the laws relating to general law cities in the State of California, a Municipal Election shall be held on November 8, 2022, for the election of Municipal Officers.

NOW, THEREFORE, THE TOWN COUNCIL OF THE TOWN OF APPLE

VALLEY, CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS:

SECTION 1. That pursuant to the requirements of the laws of the State of California relating to General Law Cities, there is called and ordered to be held in the Town of Apple Valley, California, on Tuesday, November 8, 2022, a General Municipal Election for the purpose of electing two (2) members of the Town Council for District 3 and District 4, for the full term of four (4) years; and for the purpose of electing an atlarge Mayor to the Town Council for the full term of two (2) years.

SECTION 2. The ballots to be used at the election shall be in form and content as required by law.

SECTION 3. That the San Bernardino Elections Office of the Registrar of Voters is authorized, instructed, and directed to procure and furnish any and all official ballots, notices, printed matter and all supplies, equipment and paraphernalia that may be necessary in order to conduct the election properly and lawfully.

SECTION 4. That the polls for the election shall be open at seven o'clock a.m. of the day of the election and shall remain open continuously from that time until eight o'clock p.m. of the same day when the polls shall be closed, except as provided in Section 14401 of the Elections Code of the State of California.

SECTION 5. That in all particulars not recited in this resolution, the election shall be held and conducted as provided by law for holding municipal elections.

Resolution 2022-22
SECTION 6. Notice of the time and place of holding the election is given and theTown Clerk is authorized, instructed, and directed to give further or additional notice of the election, in time, form and manner as required by law.

SECTION 7. The Town Clerk shall certify to the passage and adoption of thisResolution and enter it into the book of original resolutions.

APPROVED and ADOPTED by the Town Council of the Town of Apple Valley this 28th day of June 2022.

Kari Leon, Mayor
ATTEST:

La Vonda M-Pearson, Town Clerk

RESOLUTION NO 2022-23

A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN

OF APPLE VALLEY, CALIFORNIA, REQUESTING THE

BOARD OF SUPERVISORS OF THE COUNTY OF SAN

BERNARDINO TO RENDER SPECIFIED SERVICES TO

THE TOWN RELATING TO THE CONDUCT OF A

GENERAL MUNICIPAL ELECTION TO BE HELD ON
TUESDAY, NOVEMBER 8, 2022 PURSUANT TO § 10403

OF THE ELECTION CODE
WHEREAS, the Town Council of the Town of Apple Valley has called a General Municipal Election to be held on Tuesday, November 8, 2022 for the purpose of electing two (2) members of the Town Council for District 3 and District 4, for the full term of four (4) years; and for the purpose of electing an at-large Mayor to the Town Council for the full term of two (2) years.

WHEREAS, it is desirable that the General Municipal Election be consolidated with the Statewide General Election to be held on the same date and that within the Town the precincts, polling places and election officers of the two elections be the same, and that the county election department of the County of San Bernardino canvass the returns of the General Municipal Election and that the election be held in all respects as if there were only one election;

NOW, THEREFORE, THE TOWN COUNCIL OF THE TOWN OF APPLE VALLEY DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS:

SECTION 1. That pursuant to the requirements of § 10403 of the Elections Code, the Board of Supervisors of the County of San Bernardino is hereby requested to consent and agree to the consolidation of a General Municipal Election with the Statewide General Election on Tuesday, November 8, 2022 for the purpose of the election of two (2) members of the Town Council for District 3 and District 4, for the full term of four (4) years; and for the purpose of electing an at-large Mayor to the Town Council for the full term of two (2) years.

SECTION 2. That the county election department is authorized to canvass the returns of the General Municipal Election. The election shall be held in all respects as if there were only one election, and only one form of ballot shall be used.

SECTION 3. That the Board of Supervisors is requested to issue instructions to the county election department to take any and all steps necessary for the holding of the consolidated election.

Resolution 2022-23
SECTION 4. That the Town of Apple Valley recognizes that additional costs will be incurred by the County by reason of this consolidation and agrees to reimburse the County for any costs.

SECTION 4. That in the event of a tie vote (if any two or more persons receive an equal and the highest number of votes for an office) as certified by the County of San Bernardino Registrar of Voters, the Town Council, in accordance with Election Code Section 15651(a), shall set a date and time and place and summon the candidates who have received the tie votes to appear and the Town Clerk will determine the winner by lot.

SECTION 5. That the Town Clerk is hereby directed to file a certified copy of this resolution with the Board of Supervisors and the county election department of the County of San Bernardino, California.

SECTION 6. That the Town Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions.

APPROVED and ADOPTED by the Town Council of the Town of Apple Valleythis 28th day of June 2022.

Kari Leon, Mayor
ATTEST:

La Vonda M-Pearson, Town Clerk

Town Council Agenda Report
Date: June 28, 2022
To: Honorable Mayor and Town Council
Subject: ADOPT RESOLUTION NO. 2022-24 ADOPTING REGULATIONS FOR

CANDIDATES FOR ELECTIVE OFFICE PERTAINING TO

CANDIDATE STATEMENTS FOR THE GENERAL MUNICIPAL
ELECTION, NOVEMBER 8, 2022

From: Douglas Robertson, Town Manager
Submitted by: La Vonda M-Pearson, Director of Government Services/ Town Clerk
Budgeted Item: Yes No N/A

RECOMMENDED ACTION
Adopt Resolution No. 2022-24, adopting regulations for candidates for elective office pertaining to candidate statements submitted to the voters at an election on November 8, 2022.

BACKGROUND
Pursuant to Section 13307 of the Elections Code of the State of California, the governing body of the local agency shall adopt regulations by Resolution pertaining to materials prepared by any candidate for a municipal election, including costs of candidates’ statements.

The County Registrar has advised that if a candidate chooses to file a Candidate Statement, the Candidate will be required to remit a check (in an amount that has not been determined as of the date this report was prepared) at the time nomination papers are submitted to the Town Clerk. If a balance remains after the printing costs are paid, the balance will be refunded. Any additional costs will be billed to the “Candidate” and will be due and payable.

Based on the foregoing, staff recommends adoption of the form resolution.

FISCAL IMPACT
N/A

ATTACHMENTS
A. Resolution No. 2022-24

RESOLUTION NO. 2022-24

A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN

OF APPLE VALLEY, CALIFORNIA, ADOPTING

REGULATIONS FOR CANDIDATES FOR ELECTIVE

OFFICE PERTAINING TO CANDIDATE STATEMENTS

SUBMITTED TO THE VOTERS AT AN ELECTION TO BE
HELD ON TUESDAY, NOVEMBER 8, 2022

THE TOWN COUNCIL OF THE TOWN OF APPLE VALLEY, CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS:

Section 1. General Provisions. That pursuant to Section 13307 of the Elections Code of the State of California, each candidate for elective office to be voted for at an election to be held in the Town of Apple Valley on November 8, 2022, may prepare a candidate statement on an appropriate form provided by the Town Clerk. The statement may include the name, age and occupation of the candidate and a brief description of no more than 200 words of the candidate's education and qualifications expressed by the candidate. The statement shall not include party affiliation of the candidate, nor membership or activity in partisan political organizations. The statement shall be filed in typewritten and/or electronic form in the office of the Town Clerk at the time the candidate's nomination papers are filed. The statement may be withdrawn, but not changed, during the period for filing nomination papers and until 5:00 p.m. of the next working day after the close of the nomination period.

Section 2. Foreign Language Policy.
a. Pursuant to state law, the candidate statements must be translated and printed in Spanish.
b. Pursuant to the Voting Rights Act, the Town is required to translate candidate statements into the following languages in addition to English: Spanish.
c. The Town Clerk shall:

1. Have all candidate statements translated into the languages specified in (b) above.

2. Print all translations of candidate statements in the voters’ pamphlet.

Section 3. Payment.
a. The candidate shall be required to pay for the cost of printing the candidates’ statements in English.
b. The candidate shall be required to pay for the cost of translating the

Resolution 2022-24
candidates’ statements into any foreign language as specified in (b) above pursuant to State and/or Federal law.
c. The candidate shall be required to pay for the cost of printing the candidates’ statements in a foreign language.

The Town Clerk shall estimate the total cost of printing, handling, translating, and mailing the candidate statements filed pursuant to the Elections Code.

Section 4. Additional Materials. No candidate will be permitted to include additional materials in the sample ballot package.

Section 5. The Town Clerk shall provide each candidate or the candidate's representative a copy of this Resolution at the time nominating petitions are issued.

Section 6. All previous resolutions establishing Council policy on payment for candidates’ statements are repealed.

Section 7. This Resolution shall apply only to the election to be held on November 8, 2022 and shall then be repealed.

Section 8. The Town Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original resolutions.

APPROVED and ADOPTED by the Town Council of the Town of Apple Valley this 28th day of June 2022.

Kari Leon, Mayor
ATTEST:

La Vonda M-Pearson, Town Clerk

Town Council Agenda Report
Date: June 28, 2022
To: Honorable Mayor and Town Council
Subject: THE FINAL MAP FOR PARCEL MAP NO. 20371
From: Douglas Robertson, Town Manager
Submitted by: Brad Miller, Town Engineer
Engineering
Budgeted Item: Yes No N/A

RECOMMENDED ACTION
Move to accept the final map Parcel Map No. 20371

BACKGROUND
The applicant has complied with all conditions of approval placed on Tentative Parcel Map No. 20371. This subdivision creates 4 residential lots and a remainder lot. The site is located at the east side of Choco Road north of Huasna Road. The Planning Commission reviewed and approved the Tentative Tract Map on September 15, 2021.

The applicant has not completed all required improvements but, as allowed by the Conditions of Approval, has signed Agreements for Construction of Improvements and provided bonds to guarantee completion of the remainder of these improvements. The Town staff has reviewed and approved the Agreement and bond packages. The bond amounts provided are indicated below:

Improvments Performance Labor and Materials
Grading Improvements, $25,404 $12,702
Street Improvements, $125,351 $62,676
Water Improvements $45,217 $22,609
Monumentation (Cash Deposit) $2,000 N/A

FISCAL IMPACT
No fiscal impact.

ATTACHMENTS
A. Location Map

B. Parcel Map 20371
C. Condtions of Approval

Town Council Agenda Report
Date: June 28, 2022
To: Honorable Mayor and Town Council
Subject: AWARD 2023 ENGINEERING AND TRAFFIC SURVEY
From: Douglas Robertson, Town Manager
Submitted by: Brad Miller, Town Engineer
Engineering
Budgeted Item: Yes No N/A

RECOMMENDED ACTION
Award a Professional Services Agreement to KOA Corporation for the 2023 Engineering and Traffic Survey subject to “Approval as to Form” by the Town Attorney and “Approval as to Content” by the Town Manager.

BACKGROUND
The purpose of the project is to prepare Engineering and Traffic Surveys (E&TS) for the establishment or validation of speed limits on 41 roadway segments located in the Town of Apple Valley. This study is required to permit radar enforcement of posted speed limits.

The California Vehicle Code requires local agencies to follow established procedures when setting speed limits or updating speed zone surveys. The procedures are outlined in the CA MUTCD and in the Caltrans California Manual for Setting Speed Limits. The methodology is built around a “Spot Speed Survey” which normally consists of the measured speed of at least 100 vehicles. Based upon this survey and using engineering judgment, the posted speed limit is normally established or justified at the 5 mph interval that is nearest to the 85th percentile speed of the sample.

ANALYSIS
On September 10, 2022, staff issued a Request for Proposals seeking a traffic engineering consultant for the preparation of an Engineering and Traffic Survey. Staff received and reviewed four consultant submissions and concluded that KOA Corporation is the most qualified to proceed with the project. Respondants were scored on the following criteria:

Project understanding and approach 30 points
Experience of assigned project team 30 points
Relevant Project Examples 30 points
Completeness and overall quality of submission 10 points KOA Corporation received the highest average score of 91 out of 100 total points and has the appropriate staff, experience, and project understanding. Once a consultant was selected, staff opened their sealed cost proposal. KOA’s proposed cost for the project is $99,164.00 which is within buddget. Therefore, staff recommends that KOA Corporation be awarded a Professional Services Agreement totaling $99,164.00 for the 2022 Engineering and Traffic Survey.

FISCAL IMPACT
Funding has been appropriated in the proposed FY 2022-2023 budget (account 2010- 5010-8964-0075) with work commencing on or after July 1, 2022.

ATTACHMENTS
A. Project Segments
B. Professional Services Agreement

Town of Apple Valley
2023 Survey Segments
Street From To
Algonquin Road Bear Valley Road Sitting Bull Road
Apple Valley Road * Town Center Drive Verbena Street
Apple Valley Road Bear Valley Road Town Center Drive
Apple Valley Road Bear Valley Road Pimlico Road
Apple Valley Road Pimlico Road Yucca Loma Road
Bear Valley Road Western Town Limits Westmont Drive
Bear Valley Road Westmont Drive Kiowa Road
Bear Valley Road Kiowa Road Navajo Road
Bear Valley Road Navajo Road Eastern Town Limits
Central Road * Bear Valley Road Highway 18
Dale Evans Parkway Highway 18 Thunderbird Road
Del Oro Road Apple Valley Road Deep Creek Road
Iroquois Road Pah-Ute Road Rancherias Road
Jess Ranch Parkway Town Center Drive Bear Valley Road
Kamana Road * Apple Valley Road Tao Road
Kiowa Road Bear Valley Road Tussing Ranch Road
Kiowa Road Bear Valley Road Highway 18
Kiowa Road Highway 18 Navajo Road
Mondamon Road Highway 18 Apple Valley Road
Navajo Road Bear Valley Road Ottawa Road
Navajo Road State Highway 18 Ottawa Road
Otoe Road Rancherias Road Dale Evans Parkway
Ottawa Road Rincon Road Kiowa Road
Ottawa Road Kiowa Road Navajo Road
Rancherias Road Flathead Road Yucca Loma Road
Rancherias Road Highway 18 Flathead Road
Rimrock Road Highway 18 Rancherias Road
Rincon Road Sitting Bull Road Rancherias Road
Riverside Drive * Sahale Lane Branding Iron Road
Seneca Road Apple Valley Road Rancherias Road
Shoshonee Road Apple Valley Road Seminole Road
Sitting Bull Road Apple Valley Road Rincon Road
Sitting Bull Road Rincon Road Kiowa Road
Sitting Bull Road Kiowa Road Navajo Road
Standing Rock Avenue Outer Highway 18 N Navajo Road
Thunderbird Road Rancherias Road Dale Evans Parkway
Thunderbird Road Dale Evans Parkway Navajo Road
Tomahawk Road Rancherias Road Mandan Road
Tuscola Road Apple Valley Road Nokomis Road
Yucca Loma Road Kiowa Road Navajo Road
Zuni Road Rancherias Road Dale Evans Parkway
* Additional count data collection required due to length of segment. Page 39 of 158

Town Council Agenda Report
Date: June 28, 2022
To: Honorable Mayor and Town Council
Subject: A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF APPLE

VALLEY AMENDING THE CLASSIFICATION AND SALARY PLAN

FOR THE TOWN OF APPLE VALLEY

From: Douglas Robertson, Town Manager
Submitted by: Kristine Shoup, Human Resources Manager
Human Resources
Budgeted Item: Yes No N/A

RECOMMENDED ACTION
Approve Resolution No. 2022-25, A Resolution of the Town Council of the Town of Apple Valley, California, amending the current Classification and Salary Plan and Grade and Step Plan.

BACKGROUND
On June 14, 2022, at the 2022-2023 Budget Workshop, Council provided direction to staff to proceed with including a 2.5% cost of living adjustment (COLA) in the 2022-2023 budget. As a result, the Human Resources Department has updated the Classification and Salary Plan and the Grade and Step Plan to reflect the proposed changes.

FISCAL IMPACT
The Finance Department budgeted for associated COLA costs in the Fiscal Year 2022/2023 budget.

ATTACHMENTS
A. Resolution 2022-25
B. Classification and Salary Plan
C. Grade and Step Plan

RESOLUTION NO. 2022–25

A RESOLUTION OF THE TOWN COUNCIL OF THE

TOWN OF APPLE VALLEY AMENDING THE

CLASSIFICATION AND SALARY PLAN FOR THE TOWN

OF APPLE VALLEY
WHEREAS, the Town Council of the Town of Apple Valley has established classification and salary plan for the Town of Apple Valley; and WHEREAS, the Town Council of the Town of Apple Valley wishes to modify the classification and salary plan for the Town of Apple Valley.

NOW, THEREFORE, BE IT RESOLVED THAT:

1. Revised classification and salary plan is hereby adopted in accordance with Attachment B.

2. Revised grade and step plan is hereby adopted in accordance with Attachment C.

3. All resolutions, parts of resolutions in conflict herewith are hereby amended to be consistent herewith.

Unless otherwise noted, the effective date of this Resolution shall be June 28, 2022.

APPROVED and ADOPTED by the Town Council of the Town of Apple Valley this 28th day of June 2022.
_____________________________________
Mayor, Kari Leon
ATTEST:
______________________________
Town Clerk, La Vonda M-Pearson

Position Classification Range
Monthly
Salary Min To
Monthly
Salary Max
Account Clerk I 36 $3,263 to $4,611
Account Clerk II 40 $3,602 to $5,090
Accountant I 52 $4,845 to $6,846
Accountant II 55 $5,217 to $7,372
Accountant, Senior 61 $6,051 to $8,550
Accounting Technician 46 $4,178 to $5,903
Administrative Analyst I 55 $5,217 to $7,372
Administrative Analyst II 61 $6,051 to $8,550
Administrative Assistant 42 $3,785 to $5,348
Administrative Assistant, Senior 48 $4,389 to $6,202
Animal Health Assistant 39 $3,514 to $4,966
Animal Health Supervisor 55 $5,217 to $7,372
Animal Services Supervisor 55 $5,217 to $7,372
Animal Services Assistant 28 $2,678 to $3,785
Animal Services Attendant 37 $3,345 to $4,727
Animal Services Manager 69 $7,372 to $10,417
Animal Services Officer I 42 $3,785 to $5,348
Animal Services Officer II 46 $4,178 to $5,903
Animal Services Officer Trainee 38 $3,429 to $4,845
Animal Services Officer, Senior 52 $4,845 to $6,846
Animal Services Specialist, Senior 39 $3,514 to $4,966
Town of Apple Valley Classification Plan FY 2022-2023

Effective: 07/01/2022

Position Classification Range
Monthly
Salary Min To
Monthly
Salary Max
Town of Apple Valley Classification Plan FY 2022-2023
Animal Services Technician 40 $3,602 to $5,090
Assistant Director of Community Development 76 $8,763 to $12,383 Assistant Director of Community Enhancement 76 $8,763 to $12,383 Assistant Director of Econ Dev & Housing 76 $8,763 to $12,383 Assistant Director of Energy & Environmental Services 76 $8,763 to $12,383 Assistant Director of Finance 76 $8,763 to $12,383
Assistant Planner 53 $4,966 to $7,017
Assistant Pool Manager 34 $3,106 to $4,389
Assistant Town Clerk 64 $6,516 to $9,207
Assistant Town Manager NR $15,851 to $22,397
Associate Planner 59 $5,759 to $8,138
Code Enforcement Manager 69 $7,372 to $10,417
Code Enforcement Officer I 46 $4,178 to $5,903
Code Enforcement Officer II 52 $4,845 to $6,846
Code Enforcement Officer, Senior 55 $5,217 to $7,372
Code Enforcement Technician 42 $3,785 to $5,348
Community Development Director 86 $11,218 to $15,851
Community Enhancement Officer 44 $3,976 to $5,619
Custodial Aide 28 $2,678 to $3,785
Custodian 31 $2,884 to $4,076
Customer Service Representative 38 $3,429 to $4,845

Effective: 07/01/2022

Position Classification Range
Monthly
Salary Min To
Monthly
Salary Max
Town of Apple Valley Classification Plan FY 2022-2023
Deputy Town Clerk 53 $4,966 to $7,017
Director of Animal Services 86 $11,218 to $15,851
Director of Business Development and Communication 86 $11,218 to $15,851 Director of Finance 86 $11,218 to $15,851
Director of Government Services 86 $11,218 to $15,851
Director of Municipal Services 86 $11,218 to $15,851
Director of Parks and Recreation 86 $11,218 to $15,851
Director of Public Works 86 $11,218 to $15,851
Economic Development Assistant 53 $4,966 to $7,017
Economic Development Manager 72 $7,939 to $11,218
Economic Development Specialist I 59 $5,759 to $8,138
Economic Development Specialist II 65 $6,679 to $9,437
Equipment Operator 48 $4,389 to $6,202
Event Assistant 28 $2,678 to $3,785
Event Coordinator 51 $4,727 to $6,679
Executive Assistant 53 $4,966 to $7,017
Executive Assistant to the Town Manager 55 $5,217 to $7,372 Finance Analyst 67 $7,017 to $9,915
Finance Manager 72 $7,939 to $11,218
Fleet Mechanic 45 $4,076 to $5,759
Geographic Information Systems (GIS) Specialist 55 $5,217 to $7,372

Effective: 07/01/2022

Position Classification Range
Monthly
Salary Min To
Monthly
Salary Max
Town of Apple Valley Classification Plan FY 2022-2023
Golf Services Aide 28 $2,678 to $3,785
Golf Services Retail Assistant 34 $3,106 to $4,389
Golf Services Supervisor 52 $4,845 to $6,846
Housing & Community Dev Specialist I 57 $5,482 to $7,745 Housing & Community Dev Specialist II 63 $6,357 to $8,982 Housing Programs Supervisor 65 $6,679 to $9,437
Human Resources Analyst 61 $6,051 to $8,550
Human Resources Assistant 50 $4,611 to $6,516
Human Resources Coordinator 55 $5,217 to $7,372
Human Resources Manager 69 $7,372 to $10,417
Innovation and Technology Coordinator 63 $6,357 to $8,982 Innovation and Technology Officer 76 $8,763 to $12,383
Innovation and Technology Specialist 55 $5,217 to $7,372 Innovation and Technology Technician 49 $4,499 to $6,357 Intern 28 $2,678 to $3,785
Lifeguard 31 $2,884 to $4,076
Maintenance Aide 28 $2,678 to $3,785
Maintenance Supervisor 59 $5,759 to $8,138
Maintenance Worker I 37 $3,345 to $4,727
Maintenance Worker II 41 $3,692 to $5,217
Maintenance Worker, Senior 45 $4,076 to $5,759

Effective: 07/01/2022

Position Classification Range
Monthly
Salary Min To
Monthly
Salary Max
Town of Apple Valley Classification Plan FY 2022-2023
Manager of Legislative Affairs and Grants 72 $7,939 to $11,218 Office Assistant 30 $2,814 to $3,976
Office Assistant, Senior 36 $3,263 to $4,611
Park and Recreation Manager 72 $7,939 to $11,218
Parks Supervisor 52 $4,845 to $6,846
Planner, Senior 65 $6,679 to $9,437
Planning Manager 72 $7,939 to $11,218
Pool Manager 37 $3,345 to $4,727
Principal Planner 70 $7,557 to $10,677
Public Information Officer 72 $7,939 to $11,218
Public Relations Specialist 53 $4,966 to $7,017
Public Relations Specialist, Senior 56 $5,348 to $7,557 Public Works Inspector 52 $4,845 to $6,846
Public Works Manager 69 $7,372 to $10,417
Public Works Supervisor 59 $5,759 to $8,138
Public Works Technician 43 $3,879 to $5,482
Records Technician 41 $3,692 to $5,217
Recreation Assistant 34 $3,106 to $4,389
Recreation Coordinator 44 $3,976 to $5,619
Recreation Leader I 28 $2,678 to $3,785
Recreation Leader II 31 $2,884 to $4,076

Effective: 07/01/2022

Position Classification Range
Monthly
Salary Min To
Monthly
Salary Max
Town of Apple Valley Classification Plan FY 2022-2023
Recreation Specialist 40 $3,602 to $5,090
Recreation Supervisor 52 $4,845 to $6,846
Registered Veterinary Technician 46 $4,178 to $5,903
Rescue Coordinator 39 $3,514 to $4,966
Special Projects Manager 72 $7,939 to $11,218
Town Clerk 76 $8,763 to $12,383
Town Manager NR $21,584 to $21,584

Effective: 07/01/2022

Town of Apple Valley
Grade and Step Plan 2022-2023
Step
112233445566778
28 $2,678 $15.46 $2,745 $15.84 $2,814 $16.24 $2,884 $16.65 $2,956 $17.06 $3,030 $17.48 $3,106 $17.92 $3,184 29 $2,745 $15.84 $2,814 $16.24 $2,884 $16.65 $2,956 $17.06 $3,030 $17.48 $3,106 $17.92 $3,184 $18.38 $3,263 30 $2,814 $16.24 $2,884 $16.65 $2,956 $17.06 $3,030 $17.48 $3,106 $17.92 $3,184 $18.38 $3,263 $18.83 $3,345 31 $2,884 $16.65 $2,956 $17.06 $3,030 $17.48 $3,106 $17.92 $3,184 $18.38 $3,263 $18.83 $3,345 $19.30 $3,429 32 $2,956 $17.06 $3,030 $17.48 $3,106 $17.92 $3,184 $18.38 $3,263 $18.83 $3,345 $19.30 $3,429 $19.79 $3,514 33 $3,030 $17.48 $3,106 $17.92 $3,184 $18.38 $3,263 $18.83 $3,345 $19.30 $3,429 $19.79 $3,514 $20.27 $3,602 34 $3,106 $17.92 $3,184 $18.38 $3,263 $18.83 $3,345 $19.30 $3,429 $19.79 $3,514 $20.27 $3,602 $20.79 $3,692 35 $3,184 $18.38 $3,263 $18.83 $3,345 $19.30 $3,429 $19.79 $3,514 $20.27 $3,602 $20.79 $3,692 $21.30 $3,785 36 $3,263 $18.83 $3,345 $19.30 $3,429 $19.79 $3,514 $20.27 $3,602 $20.79 $3,692 $21.30 $3,785 $21.84 $3,879 37 $3,345 $19.30 $3,429 $19.79 $3,514 $20.27 $3,602 $20.79 $3,692 $21.30 $3,785 $21.84 $3,879 $22.38 $3,976 38 $3,429 $19.79 $3,514 $20.27 $3,602 $20.79 $3,692 $21.30 $3,785 $21.84 $3,879 $22.38 $3,976 $22.95 $4,076 39 $3,514 $20.27 $3,602 $20.79 $3,692 $21.30 $3,785 $21.84 $3,879 $22.38 $3,976 $22.95 $4,076 $23.53 $4,178 40 $3,602 $20.79 $3,692 $21.30 $3,785 $21.84 $3,879 $22.38 $3,976 $22.95 $4,076 $23.53 $4,178 $24.10 $4,282 41 $3,692 $21.30 $3,785 $21.84 $3,879 $22.38 $3,976 $22.95 $4,076 $23.53 $4,178 $24.10 $4,282 $24.71 $4,389 42 $3,785 $21.84 $3,879 $22.38 $3,976 $22.95 $4,076 $23.53 $4,178 $24.10 $4,282 $24.71 $4,389 $25.33 $4,499 43 $3,879 $22.38 $3,976 $22.95 $4,076 $23.53 $4,178 $24.10 $4,282 $24.71 $4,389 $25.33 $4,499 $25.96 $4,611 44 $3,976 $22.95 $4,076 $23.53 $4,178 $24.10 $4,282 $24.71 $4,389 $25.33 $4,499 $25.96 $4,611 $26.61 $4,727 45 $4,076 $23.53 $4,178 $24.10 $4,282 $24.71 $4,389 $25.33 $4,499 $25.96 $4,611 $26.61 $4,727 $27.27 $4,845 46 $4,178 $24.10 $4,282 $24.71 $4,389 $25.33 $4,499 $25.96 $4,611 $26.61 $4,727 $27.27 $4,845 $27.95 $4,966 47 $4,282 $24.71 $4,389 $25.33 $4,499 $25.96 $4,611 $26.61 $4,727 $27.27 $4,845 $27.95 $4,966 $28.66 $5,090 48 $4,389 $25.33 $4,499 $25.96 $4,611 $26.61 $4,727 $27.27 $4,845 $27.95 $4,966 $28.66 $5,090 $29.37 $5,217 49 $4,499 $25.96 $4,611 $26.61 $4,727 $27.27 $4,845 $27.95 $4,966 $28.66 $5,090 $29.37 $5,217 $30.11 $5,348 50 $4,611 $26.61 $4,727 $27.27 $4,845 $27.95 $4,966 $28.66 $5,090 $29.37 $5,217 $30.11 $5,348 $30.86 $5,482 51 $4,727 $27.27 $4,845 $27.95 $4,966 $28.66 $5,090 $29.37 $5,217 $30.11 $5,348 $30.86 $5,482 $31.62 $5,619 52 $4,845 $27.95 $4,966 $28.66 $5,090 $29.37 $5,217 $30.11 $5,348 $30.86 $5,482 $31.62 $5,619 $32.42 $5,759 53 $4,966 $28.66 $5,090 $29.37 $5,217 $30.11 $5,348 $30.86 $5,482 $31.62 $5,619 $32.42 $5,759 $33.23 $5,903 54 $5,090 $29.37 $5,217 $30.11 $5,348 $30.86 $5,482 $31.62 $5,619 $32.42 $5,759 $33.23 $5,903 $34.05 $6,051 55 $5,217 $30.11 $5,348 $30.86 $5,482 $31.62 $5,619 $32.42 $5,759 $33.23 $5,903 $34.05 $6,051 $34.92 $6,202 56 $5,348 $30.86 $5,482 $31.62 $5,619 $32.42 $5,759 $33.23 $5,903 $34.05 $6,051 $34.92 $6,202 $35.78 $6,357 57 $5,482 $31.62 $5,619 $32.42 $5,759 $33.23 $5,903 $34.05 $6,051 $34.92 $6,202 $35.78 $6,357 $36.68 $6,516 58 $5,619 $32.42 $5,759 $33.23 $5,903 $34.05 $6,051 $34.92 $6,202 $35.78 $6,357 $36.68 $6,516 $37.60 $6,679 59 $5,759 $33.23 $5,903 $34.05 $6,051 $34.92 $6,202 $35.78 $6,357 $36.68 $6,516 $37.60 $6,679 $38.53 $6,846 60 $5,903 $34.05 $6,051 $34.92 $6,202 $35.78 $6,357 $36.68 $6,516 $37.60 $6,679 $38.53 $6,846 $39.50 $7,017 61 $6,051 $34.92 $6,202 $35.78 $6,357 $36.68 $6,516 $37.60 $6,679 $38.53 $6,846 $39.50 $7,017 $40.49 $7,192 62 $6,202 $35.78 $6,357 $36.68 $6,516 $37.60 $6,679 $38.53 $6,846 $39.50 $7,017 $40.49 $7,192 $41.50 $7,372 63 $6,357 $36.68 $6,516 $37.60 $6,679 $38.53 $6,846 $39.50 $7,017 $40.49 $7,192 $41.50 $7,372 $42.53 $7,557 64 $6,516 $37.60 $6,679 $38.53 $6,846 $39.50 $7,017 $40.49 $7,192 $41.50 $7,372 $42.53 $7,557 $43.60 $7,745 65 $6,679 $38.53 $6,846 $39.50 $7,017 $40.49 $7,192 $41.50 $7,372 $42.53 $7,557 $43.60 $7,745 $44.68 $7,939 66 $6,846 $39.50 $7,017 $40.49 $7,192 $41.50 $7,372 $42.53 $7,557 $43.60 $7,745 $44.68 $7,939 $45.81 $8,138 67 $7,017 $40.49 $7,192 $41.50 $7,372 $42.53 $7,557 $43.60 $7,745 $44.68 $7,939 $45.81 $8,138 $46.96 $8,341 68 $7,192 $41.50 $7,372 $42.53 $7,557 $43.60 $7,745 $44.68 $7,939 $45.81 $8,138 $46.96 $8,341 $48.12 $8,550 69 $7,372 $42.53 $7,557 $43.60 $7,745 $44.68 $7,939 $45.81 $8,138 $46.96 $8,341 $48.12 $8,550 $49.34 $8,763 70 $7,557 $43.60 $7,745 $44.68 $7,939 $45.81 $8,138 $46.96 $8,341 $48.12 $8,550 $49.34 $8,763 $50.56 $8,982 71 $7,745 $44.68 $7,939 $45.81 $8,138 $46.96 $8,341 $48.12 $8,550 $49.34 $8,763 $50.56 $8,982 $51.83 $9,207 72 $7,939 $45.81 $8,138 $46.96 $8,341 $48.12 $8,550 $49.34 $8,763 $50.56 $8,982 $51.83 $9,207 $53.12 $9,437 73 $8,138 $46.96 $8,341 $48.12 $8,550 $49.34 $8,763 $50.56 $8,982 $51.83 $9,207 $53.12 $9,437 $54.45 $9,673 74 $8,341 $48.12 $8,550 $49.34 $8,763 $50.56 $8,982 $51.83 $9,207 $53.12 $9,437 $54.45 $9,673 $55.82 $9,915 75 $8,550 $49.34 $8,763 $50.56 $8,982 $51.83 $9,207 $53.12 $9,437 $54.45 $9,673 $55.82 $9,915 $57.21 $10,163 76 $8,763 $50.56 $8,982 $51.83 $9,207 $53.12 $9,437 $54.45 $9,673 $55.82 $9,915 $57.21 $10,163 $58.64 $10,417 77 $8,982 $51.83 $9,207 $53.12 $9,437 $54.45 $9,673 $55.82 $9,915 $57.21 $10,163 $58.64 $10,417 $60.10 $10,677 78 $9,207 $53.12 $9,437 $54.45 $9,673 $55.82 $9,915 $57.21 $10,163 $58.64 $10,417 $60.10 $10,677 $61.60 $10,944 79 $9,437 $54.45 $9,673 $55.82 $9,915 $57.21 $10,163 $58.64 $10,417 $60.10 $10,677 $61.60 $10,944 $63.15 $11,218 Effective : 07/01/2022, Res# 2022-__

Town of Apple Valley
Grade and Step Plan 2022-2023
Step 1 1 2 2 3 3 4 4 5 5 6 6 7 7 8
80 $9,673 $55.82 $9,915 $57.21 $10,163 $58.64 $10,417 $60.10 $10,677 $61.60 $10,944 $63.15 $11,218 $64.73 $11,498 81 $9,915 $57.21 $10,163 $58.64 $10,417 $60.10 $10,677 $61.60 $10,944 $63.15 $11,218 $64.73 $11,498 $66.34 $11,786 82 $10,163 $58.64 $10,417 $60.10 $10,677 $61.60 $10,944 $63.15 $11,218 $64.73 $11,498 $66.34 $11,786 $68.00 $12,081 83 $10,417 $60.10 $10,677 $61.60 $10,944 $63.15 $11,218 $64.73 $11,498 $66.34 $11,786 $68.00 $12,081 $69.70 $12,383 84 $10,677 $61.60 $10,944 $63.15 $11,218 $64.73 $11,498 $66.34 $11,786 $68.00 $12,081 $69.70 $12,383 $71.44 $12,692 85 $10,944 $63.15 $11,218 $64.73 $11,498 $66.34 $11,786 $68.00 $12,081 $69.70 $12,383 $71.44 $12,692 $73.22 $13,010 86 $11,218 $64.73 $11,498 $66.34 $11,786 $68.00 $12,081 $69.70 $12,383 $71.44 $12,692 $73.22 $13,010 $75.06 $13,335 87 $11,498 $66.34 $11,786 $68.00 $12,081 $69.70 $12,383 $71.44 $12,692 $73.22 $13,010 $75.06 $13,335 $76.94 $13,668 88 $11,786 $68.00 $12,081 $69.70 $12,383 $71.44 $12,692 $73.22 $13,010 $75.06 $13,335 $76.94 $13,668 $78.86 $14,010 89 $12,081 $69.70 $12,383 $71.44 $12,692 $73.22 $13,010 $75.06 $13,335 $76.94 $13,668 $78.86 $14,010 $80.84 $14,360 90 $12,383 $71.44 $12,692 $73.22 $13,010 $75.06 $13,335 $76.94 $13,668 $78.86 $14,010 $80.84 $14,360 $82.86 $14,719 Effective : 07/01/2022, Res# 2022-__

Town of Apple Valley
Grade and Step Plan 2022-2023
Step
28 29
30 31
32 33
34 35
36 37
38 39
40 41
42 43
44 45
46 47
48 49
50 51
52 53
54 55
56 57
58 59
60 61
62 63
64 65
66 67
68 69
70 71
72 73
74 75
76 77
78 79
899 10 10 11 11 12 12 13 13 14 14 15 15
$18.38 $3,263 $18.83 $3,345 $19.30 $3,429 $19.79 $3,514 $20.27 $3,602 $20.79 $3,692 $21.30 $3,785 $21.84 $18.83 $3,345 $19.30 $3,429 $19.79 $3,514 $20.27 $3,602 $20.79 $3,692 $21.30 $3,785 $21.84 $3,879 $22.38 $19.30 $3,429 $19.79 $3,514 $20.27 $3,602 $20.79 $3,692 $21.30 $3,785 $21.84 $3,879 $22.38 $3,976 $22.95 $19.79 $3,514 $20.27 $3,602 $20.79 $3,692 $21.30 $3,785 $21.84 $3,879 $22.38 $3,976 $22.95 $4,076 $23.53 $20.27 $3,602 $20.79 $3,692 $21.30 $3,785 $21.84 $3,879 $22.38 $3,976 $22.95 $4,076 $23.53 $4,178 $24.10 $20.79 $3,692 $21.30 $3,785 $21.84 $3,879 $22.38 $3,976 $22.95 $4,076 $23.53 $4,178 $24.10 $4,282 $24.71 $21.30 $3,785 $21.84 $3,879 $22.38 $3,976 $22.95 $4,076 $23.53 $4,178 $24.10 $4,282 $24.71 $4,389 $25.33 $21.84 $3,879 $22.38 $3,976 $22.95 $4,076 $23.53 $4,178 $24.10 $4,282 $24.71 $4,389 $25.33 $4,499 $25.96 $22.38 $3,976 $22.95 $4,076 $23.53 $4,178 $24.10 $4,282 $24.71 $4,389 $25.33 $4,499 $25.96 $4,611 $26.61 $22.95 $4,076 $23.53 $4,178 $24.10 $4,282 $24.71 $4,389 $25.33 $4,499 $25.96 $4,611 $26.61 $4,727 $27.27 $23.53 $4,178 $24.10 $4,282 $24.71 $4,389 $25.33 $4,499 $25.96 $4,611 $26.61 $4,727 $27.27 $4,845 $27.95 $24.10 $4,282 $24.71 $4,389 $25.33 $4,499 $25.96 $4,611 $26.61 $4,727 $27.27 $4,845 $27.95 $4,966 $28.66 $24.71 $4,389 $25.33 $4,499 $25.96 $4,611 $26.61 $4,727 $27.27 $4,845 $27.95 $4,966 $28.66 $5,090 $29.37 $25.33 $4,499 $25.96 $4,611 $26.61 $4,727 $27.27 $4,845 $27.95 $4,966 $28.66 $5,090 $29.37 $5,217 $30.11 $25.96 $4,611 $26.61 $4,727 $27.27 $4,845 $27.95 $4,966 $28.66 $5,090 $29.37 $5,217 $30.11 $5,348 $30.86 $26.61 $4,727 $27.27 $4,845 $27.95 $4,966 $28.66 $5,090 $29.37 $5,217 $30.11 $5,348 $30.86 $5,482 $31.62 $27.27 $4,845 $27.95 $4,966 $28.66 $5,090 $29.37 $5,217 $30.11 $5,348 $30.86 $5,482 $31.62 $5,619 $32.42 $27.95 $4,966 $28.66 $5,090 $29.37 $5,217 $30.11 $5,348 $30.86 $5,482 $31.62 $5,619 $32.42 $5,759 $33.23 $28.66 $5,090 $29.37 $5,217 $30.11 $5,348 $30.86 $5,482 $31.62 $5,619 $32.42 $5,759 $33.23 $5,903 $34.05 $29.37 $5,217 $30.11 $5,348 $30.86 $5,482 $31.62 $5,619 $32.42 $5,759 $33.23 $5,903 $34.05 $6,051 $34.92 $30.11 $5,348 $30.86 $5,482 $31.62 $5,619 $32.42 $5,759 $33.23 $5,903 $34.05 $6,051 $34.92 $6,202 $35.78 $30.86 $5,482 $31.62 $5,619 $32.42 $5,759 $33.23 $5,903 $34.05 $6,051 $34.92 $6,202 $35.78 $6,357 $36.68 $31.62 $5,619 $32.42 $5,759 $33.23 $5,903 $34.05 $6,051 $34.92 $6,202 $35.78 $6,357 $36.68 $6,516 $37.60 $32.42 $5,759 $33.23 $5,903 $34.05 $6,051 $34.92 $6,202 $35.78 $6,357 $36.68 $6,516 $37.60 $6,679 $38.53 $33.23 $5,903 $34.05 $6,051 $34.92 $6,202 $35.78 $6,357 $36.68 $6,516 $37.60 $6,679 $38.53 $6,846 $39.50 $34.05 $6,051 $34.92 $6,202 $35.78 $6,357 $36.68 $6,516 $37.60 $6,679 $38.53 $6,846 $39.50 $7,017 $40.49 $34.92 $6,202 $35.78 $6,357 $36.68 $6,516 $37.60 $6,679 $38.53 $6,846 $39.50 $7,017 $40.49 $7,192 $41.50 $35.78 $6,357 $36.68 $6,516 $37.60 $6,679 $38.53 $6,846 $39.50 $7,017 $40.49 $7,192 $41.50 $7,372 $42.53 $36.68 $6,516 $37.60 $6,679 $38.53 $6,846 $39.50 $7,017 $40.49 $7,192 $41.50 $7,372 $42.53 $7,557 $43.60 $37.60 $6,679 $38.53 $6,846 $39.50 $7,017 $40.49 $7,192 $41.50 $7,372 $42.53 $7,557 $43.60 $7,745 $44.68 $38.53 $6,846 $39.50 $7,017 $40.49 $7,192 $41.50 $7,372 $42.53 $7,557 $43.60 $7,745 $44.68 $7,939 $45.81 $39.50 $7,017 $40.49 $7,192 $41.50 $7,372 $42.53 $7,557 $43.60 $7,745 $44.68 $7,939 $45.81 $8,138 $46.96 $40.49 $7,192 $41.50 $7,372 $42.53 $7,557 $43.60 $7,745 $44.68 $7,939 $45.81 $8,138 $46.96 $8,341 $48.12 $41.50 $7,372 $42.53 $7,557 $43.60 $7,745 $44.68 $7,939 $45.81 $8,138 $46.96 $8,341 $48.12 $8,550 $49.34 $42.53 $7,557 $43.60 $7,745 $44.68 $7,939 $45.81 $8,138 $46.96 $8,341 $48.12 $8,550 $49.34 $8,763 $50.56 $43.60 $7,745 $44.68 $7,939 $45.81 $8,138 $46.96 $8,341 $48.12 $8,550 $49.34 $8,763 $50.56 $8,982 $51.83 $44.68 $7,939 $45.81 $8,138 $46.96 $8,341 $48.12 $8,550 $49.34 $8,763 $50.56 $8,982 $51.83 $9,207 $53.12 $45.81 $8,138 $46.96 $8,341 $48.12 $8,550 $49.34 $8,763 $50.56 $8,982 $51.83 $9,207 $53.12 $9,437 $54.45 $46.96 $8,341 $48.12 $8,550 $49.34 $8,763 $50.56 $8,982 $51.83 $9,207 $53.12 $9,437 $54.45 $9,673 $55.82 $48.12 $8,550 $49.34 $8,763 $50.56 $8,982 $51.83 $9,207 $53.12 $9,437 $54.45 $9,673 $55.82 $9,915 $57.21 $49.34 $8,763 $50.56 $8,982 $51.83 $9,207 $53.12 $9,437 $54.45 $9,673 $55.82 $9,915 $57.21 $10,163 $58.64 $50.56 $8,982 $51.83 $9,207 $53.12 $9,437 $54.45 $9,673 $55.82 $9,915 $57.21 $10,163 $58.64 $10,417 $60.10 $51.83 $9,207 $53.12 $9,437 $54.45 $9,673 $55.82 $9,915 $57.21 $10,163 $58.64 $10,417 $60.10 $10,677 $61.60 $53.12 $9,437 $54.45 $9,673 $55.82 $9,915 $57.21 $10,163 $58.64 $10,417 $60.10 $10,677 $61.60 $10,944 $63.15 $54.45 $9,673 $55.82 $9,915 $57.21 $10,163 $58.64 $10,417 $60.10 $10,677 $61.60 $10,944 $63.15 $11,218 $64.73 $55.82 $9,915 $57.21 $10,163 $58.64 $10,417 $60.10 $10,677 $61.60 $10,944 $63.15 $11,218 $64.73 $11,498 $66.34 $57.21 $10,163 $58.64 $10,417 $60.10 $10,677 $61.60 $10,944 $63.15 $11,218 $64.73 $11,498 $66.34 $11,786 $68.00 $58.64 $10,417 $60.10 $10,677 $61.60 $10,944 $63.15 $11,218 $64.73 $11,498 $66.34 $11,786 $68.00 $12,081 $69.70 $60.10 $10,677 $61.60 $10,944 $63.15 $11,218 $64.73 $11,498 $66.34 $11,786 $68.00 $12,081 $69.70 $12,383 $71.44 $61.60 $10,944 $63.15 $11,218 $64.73 $11,498 $66.34 $11,786 $68.00 $12,081 $69.70 $12,383 $71.44 $12,692 $73.22 $63.15 $11,218 $64.73 $11,498 $66.34 $11,786 $68.00 $12,081 $69.70 $12,383 $71.44 $12,692 $73.22 $13,010 $75.06 $64.73 $11,498 $66.34 $11,786 $68.00 $12,081 $69.70 $12,383 $71.44 $12,692 $73.22 $13,010 $75.06 $13,335 $76.94 Effective : 07/01/2022, Res# 2022-__

Town of Apple Valley
Grade and Step Plan 2022-2023
Step
80 81
82 83
84 85
86 87
88 89
90 8 9 9 10 10 11 11 12 12 13 13 14 14 15 15
$66.34 $11,786 $68.00 $12,081 $69.70 $12,383 $71.44 $12,692 $73.22 $13,010 $75.06 $13,335 $76.94 $13,668 $78.86 $68.00 $12,081 $69.70 $12,383 $71.44 $12,692 $73.22 $13,010 $75.06 $13,335 $76.94 $13,668 $78.86 $14,010 $80.84 $69.70 $12,383 $71.44 $12,692 $73.22 $13,010 $75.06 $13,335 $76.94 $13,668 $78.86 $14,010 $80.84 $14,360 $82.86 $71.44 $12,692 $73.22 $13,010 $75.06 $13,335 $76.94 $13,668 $78.86 $14,010 $80.84 $14,360 $82.86 $14,719 $84.93 $73.22 $13,010 $75.06 $13,335 $76.94 $13,668 $78.86 $14,010 $80.84 $14,360 $82.86 $14,719 $84.93 $15,087 $87.05 $75.06 $13,335 $76.94 $13,668 $78.86 $14,010 $80.84 $14,360 $82.86 $14,719 $84.93 $15,087 $87.05 $15,464 $89.23 $76.94 $13,668 $78.86 $14,010 $80.84 $14,360 $82.86 $14,719 $84.93 $15,087 $87.05 $15,464 $89.23 $15,851 $91.46 $78.86 $14,010 $80.84 $14,360 $82.86 $14,719 $84.93 $15,087 $87.05 $15,464 $89.23 $15,851 $91.46 $16,247 $93.74 $80.84 $14,360 $82.86 $14,719 $84.93 $15,087 $87.05 $15,464 $89.23 $15,851 $91.46 $16,247 $93.74 $16,653 $96.09 $82.86 $14,719 $84.93 $15,087 $87.05 $15,464 $89.23 $15,851 $91.46 $16,247 $93.74 $16,653 $96.09 $17,069 $98.49 $84.93 $15,087 $87.05 $15,464 $89.23 $15,851 $91.46 $16,247 $93.74 $16,653 $96.09 $17,069 $98.49 $17,496 $100.95 Effective : 07/01/2022, Res# 2022-__

Ordinance 556
Town Council Agenda Report
Date: June 28, 2022
To: Honorable Mayor and Town Council
Subject: INTRODUCE ORDINANCE NO. 556 AN ORDINANCE OF THE TOWN

COUNCIL OF THE TOWN OF APPLE VALLEY, CALIFORNIA,
AMENDING SECTIONS 1.01.170 AND 1.01.200 OF CHAPTER 1.01

OF THE TOWN OF APPLE VALLEY MUNICIPAL CODE RELATED TO

ADMINISTRATIVE CITATION PROVISIONS REGARDING BUILDING,

PLUMBING, ELECTRICAL, OR OTHER SIMILAR STRUCTURAL OR
ZONING ISSUES, AND ILLEGAL CULTIVATION OF CANNABIS; AND

FINDING THE ACTION EXEMPT FROM THE CALIFORNIA

ENVIRONMENTAL QUALITY ACT
From: Douglas Robertson, Town Manager
Submitted by: Guy Eisenbrey, Interim Director of Public Works Code Enforcement
Budgeted Item: Yes No N/A

RECOMMENDED ACTION
A. Find that the proposed adoption of Ordinance No. 556 is not subject to and is Exempt from CEQA, based upon findings under CEQA Guidelines, Section 15061 Sub (b)(3) that can be seen with certainty that there is no possibility that the proposed amendment may have a significant effect on the environment.

B. Move to waive the reading of Ordinance No. 556 in its entirety and read by title only.

C. Move to Introduce Ordinance No.556 amending sections 1.01.170 and

1.01.200 of Chapter 1.01 of the Town of Apple Valley Municipal Code related to administrative citations provisions regarding building, plumbing, electrical, or other similar structural or zoning issues, and illegal cultivation of marijuana; and finding the action exempt from the California Environmental Quality Act.

D. Direct Staff to file a Notice of Exemption.

SUMMARY

Ordinance 556
It is necessary to review the language of the Town’s Code from time to time to ensure it aligns with State law, published rulings in recent court cases, and best business practices as determined by professional and expert staff. This amendment serves to change the language of the aforementioned Municipal Code sections for the following reasons: To allow Town Code Enforcement Officers to more effectively and efficiently enforce the Town’s Municipal Code; to align the Town’s Municipal Code with current State law; to impose administrative fines and penalties allowed by and pursuant to California Government Code section 53069.4; to add a definition for a “responsible person”; and to uphold the Town Council’s intent of the Code. As a result of this review, the following changes are proposed to be made to the Municipal Code.

BACKGROUND:

Code Enforcement is an everchanging profession and its ability to keep up with changes in State and Federal law demands occasional fine tuning of the Municipal Code, its provisions, and requirements as a means of ensuring it is fair, effective, and aligned with current legislation and legal precedent.

The amendments seek to align the Town’s Municipal Code with current State laws such as California Government Code section 53069.4 which permits the Town Council to adopt an ordinance imposing administrative fines or penalties for any violations of its Ordinances, subject to providing a reasonable period of time for a person responsible for a continuing violation to correct or otherwise remedy the violation prior to imposition of administrative fines or penalties when the violation pertains to building, plumbing, electrical, or other similar structural or zoning issues that do not create an immediate danger to health or safety. This Government Code section further permits the Town Council to adopt such an ordinance that provides for the immediate imposition of administrative fines or penalties for the violation of building, plumbing, electrical, or other similar structural, health and safety, or zoning requirements if the violation exists as a result of, or to facilitate, the illegal cultivation of marijuana, subject to a reasonable period of time for the correction or remedy of the violation prior to the imposition of administrative fines or penalties if certain conditions are met.

Lastly, the ordinance seeks to clearly identify and define “responsible person(s)” for the purposes of imposing fines, especially in marijuana cultivation or similar type enforcement cases where an absentee landlord is derelict in their duty to ensure the violation or activity does not occur on property owned by them. The current code lacks this definition and the proposed changes should strengthen the Town’s efforts to curtail illegal activity and substandard conditions, ensuring the community’s health, safety, and welfare.

None of the proposed changes to the Municipal Code add or delete any violations but serve to better position the Town to effectively enforce the provisions of the Code. Nor

Ordinance 556
are the amendments intended to alter the Town Council’s overarching intent of the Code itself.

FISCAL IMPACT
None.

ATTACHMENTS
None.

ORDINANCE NO. 556

AN ORDINANCE OF THE TOWN COUNCIL OF THE TOWN
OF APPLE VALLEY AMENDING SECTIONS 1.01.170 AND

1.01.200 OF CHAPTER 1.01 OF TITLE 1 OF THE TOWN OF

APPLE VALLEY MUNICIPAL CODE RELATED TO

ADMINISTRATIVE CITATION PROVISIONS REGARDING

BUILDING, PLUMBING, ELECTRICAL, OR OTHER

SIMILAR STRUCTURAL OR ZONING ISSUES, AND
ILLEGAL CULTIVATION OF CANNABIS; AND FINDING

THE ACTION EXEMPT FROM THE CALIFORNIA

ENVIRONMENTAL QUALITY ACT
WHEREAS, California Government Code Section 53069.4 permits the Town Council to adopt an ordinance imposing administrative fines or penalties for any violations of its Ordinances, subject to providing a reasonable period of time for a person responsible for a continuing violation to correct or otherwise remedy the violation prior to imposition of administrative fines or penalties when the violation pertains to building, plumbing, electrical, or other similar structural or zoning issues that do not create an immediate danger to health or safety; and
WHEREAS, California Government Code Section 53069.4 further permits the Town Council to adopt such an ordinance that provides for the immediate imposition of administrative fines or penalties for the violation of building, plumbing, electrical, or other similar structural, health and safety, or zoning requirements if the violation exists as a result of, or to facilitate, the illegal cultivation of cannabis, subject to a reasonable period of time for the correction or remedy of the violation prior to the imposition of administrative fines or penalties if certain conditions are met; and
WHEREAS, the Town Council desires to adopt an Ordinance in order to impose the administrative fines and penalties allowed by the aforementioned statute, subject to the statutorily required correction period, and add a definition for a “responsible person.”

NOW, THEREFORE, THE TOWN COUNCIL OF THE TOWN OF APPLE VALLEY DOES ORDAIN AS FOLLOWS:

SECTION 1. Incorporation of Recitals. The above recitals are true and correct and are incorporated herein by this reference.

SECTION 2. Subparagraph (q) of Section 1.01.170 of Title 1 of the Town of Apple Valley Municipal Code is amended to read, in its entirety as follows:
“1.01.170 – Definitions.
…
(q) Person means any of the following:
(1) Any natural person, firm, company, corporation, club, trust, or similar

Ordinance 556
organization, partnership, association, public corporation, political subdivision, public entity, city or town (except the Town of Apple Valley when the context so indicates), the County of San Bernardino, any district in the County of San Bernardino, the State of California, or the United States of America, or any department or agency or any employee, manager, officer, agent, lessee or servant of any thereof, unless this Code expressly provides otherwise.
(2) A person who causes a code violation to occur.
(3) A person who maintains or allows a code violation to continue, by his or her action or failure to act.
(4) A person whose agent, employee, or independent contractor causes a code violation by its action or failure to act.
(5) A person who is the property owner of real property where a propertyrelated code violation occurs. There shall be a legal presumption that the property owner of record is the owner of a parcel as shown on the latest equalized assessment roll or according to the records of the county assessor or tax collector.
(6) A person who is a tenant, lessee, or sublessee with the current right of possession of real property where a property-related code violation occurs and a tenant, lessee, or sublessee of a parcel is a person who has notice of any code violation existing on the premises.
(7) A person who is the on-site manager of a business, or a person actually or apparently in charge of the business.
(8) A person who, pursuant to California Civil Code Section 2929.3, purchases residential property at a foreclosure sale, or acquired the residential property through foreclosure under a mortgage or deed of trust, where a property-related code violation exists upon the residential property, and the residential property is vacant.
(9) For purposes of this Section, there may be more than one (1) person for a code violation and more than one (1) violator.”
SECTION 3. New subsections (10) and (11) shall be added to subparagraph (f) of Section 1.01.200 of Title 1 of the Town of Apple Valley Municipal Code to read, in its entirety, as follows:
“1.01.200 – Violations.
…
(f) Each administrative citation shall contain the following information:

Ordinance 556
…
(10) If the citation is issued for a violation of zoning, building, plumbing, electrical, or similar structural or zoning issues that do not relate to immediate danger to health or safety, a reasonable time shall be designated for compliance, not to exceed thirty (30) calendar days, prior to the imposition of administrative fines or penalties.
(11) It is unlawful for any property owner in the Town to establish or operate any medical or commercial marijuana business or operation or prohibited residential marijuana cultivation, as defined in Sections

9.29.210(C), 9.29.210(D)(1), 9.29.210(D)(2) and 9.36.230(B) of the Apple Valley Municipal Code, which prohibition shall include renting, leasing to, or otherwise allowing any person to occupy or use such property for such unlawful purposes. Any property owner in the Town where an illegal medical or commercial marijuana business or operation or prohibited residential marijuana cultivation is occurring or found is strictly liable for the offense and may be issued an administrative citation. A citation issued for a violation of zoning, building, plumbing, electrical, or other similar structural, health and safety, or zoning requirements need not include a reasonable time for compliance in the citation when the violation exists as a result of, or to facilitate, the illegal cultivation of marijuana, unless all of the following are true:
(A) A tenant is in possession of the property that is the subject of the administrative action;
(B) The rental property owner or agent can provide evidence that the rental or lease agreement explicitly prohibits the cultivation of marijuana; and (C)The rental property owner or agent did not know the tenant was illegally cultivating marijuana and no complaint, property inspection, or other information caused the rental property owner or agent to have actual notice of the illegal marijuana cultivation.”
SECTION 4. CEQA. The Ordinance is not subject to the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) of the State Guidelines to Implement CEQA, which states that the activity is covered by the general rule that CEQA applies only to projects that have the potential for causing a significant effect on the environment.

Where it can be seen with certainty that there is no possibility that the activity in question, the proposed Code Amendment, may have a significant effect of the environment, the activity is not subject to CEQA.

SECTION 5. Severability. If any section, sentence, clause or phrase of this Ordinance or the application thereof to any entity, person or circumstance is held for any reason to be invalid or unconstitutional, such invalidity or unconstitutionality shall not affect other provisions or applications of this Ordinance which can be given effect without the invalid provision or application, and to this end the provisions of this Ordinance are

Ordinance 556
severable. The Town Council of the Town of Apple Valley hereby declares that it would have adopted this Ordinance and each section, sentence, clause or phrase thereof, irrespective of the fact that any one or more section, subsections, sentences, clauses or phrases be declared invalid or unconstitutional.

SECTION 6. Effective Date. This Ordinance shall become effective thirty (30) days after the date of its adoption.

SECTION 7. Notice of Adoption. The Town Clerk of the Town of Apple Valley shall certify to the adoption of this ordinance and cause publication to occur in a newspaper of general circulation and published and circulated in the Town in a manner permitted under section 36933 of the Government Code of the State of California.

APPROVED AND ADOPTED by the Town Council of the Town of Apple Valley, California, at a regular meeting held on the 12
th day of July 2022.
__________________________
Kari Leon, Mayor
Attest:
__________________________
La Vonda M-Pearson, Town Clerk
Approved as to form: Approved as to Content:
__________________________ __________________________
Thomas A. Rice, Town Attorney Douglas B. Robertson, Town Manager

Town Council Agenda Report
Date: June 28, 2022
To: Honorable Mayor and Town Council
Subject: REVIEW OF THE FISCAL YEAR 2022-2023 STATEMENT OF

INVESTMENT POLICY

From: Douglas Robertson, Town Manager
Submitted by: Sydnie Harris, Director of Finance
Finance
Budgeted Item: Yes No N/A

RECOMMENDED ACTION
Adopt Resolution No. 2022-19 approving the Statement of Investment Policy for Fiscal Year 2022-2023 and delegating the investment activities to the Town Treasurer.

BACKGROUND
The California Government Code Section 53646 requires the Town Treasurer to submit a “Statement of Investment Policy” to the legislative body each fiscal year. Effective January 1, 1996, this Code Section was reinstated and requires annual adoption of the policy statement. This Investment Policy has been designed and developed according to the specific needs of the Town of Apple Valley and complies with the California Government Code, guidelines recommended by the California Municipal Treasurer’s Association (CMTA) and guidelines recommended by the Association of Public Treasurers of the United States and Canada (APTUS&C).

Pursuant to the Government Code, the Town Treasurer has the responsibility to submit a quarterly Treasurer’s Report to the Town Council regarding the status of receipts, disbursements, cash balances by fund and investment of cash balances within thirty (30) days following the end of the quarter covered by the report.

The Finance Department updates cash flow spreadsheets, reviews revenue projections and performs investment functions on a daily basis. The Finance Department analyzes the cash flow requirements of the Town each morning. Idle funds are invested daily to effectively maximize the Town’s investment earnings within the parameters outlined in the Town’s adopted Investment Policy.

The single most important statutory duty of the Town Treasurer is set forth in California Government Code Section 41001 which provides that the “Treasurer shall receive and safely keep all money coming into the Treasury.” In light of these statutory responsibilities, the California Municipal Treasurer’s Association has established the following guidelines to prudent investment strategy for local treasurers to follow:

Legal Investment Authority: Temporary idle monies are to be invested in accordance with state and local statutes and in compliance with California Government Code Sections 53600 et. seq.
• Safety: It is the primary duty and responsibility of the Treasurer to protect, preserve, and maintain intact cash and investments placed in trust with the Treasurer on behalf of the citizens of the Town of Apple Valley.
• Liquidity: An adequate percentage of the portfolio should be maintained in liquid shortterm securities, which can be converted to cash if necessary, to meet disbursement requirements.
• Yield: The Treasurer shall obtain the highest possible yield within the parameters of the Town’s authorized investments, provided the criteria for safety and liquidity have been met.

ANALYSIS
The 2022-2023 Investment Policy adopted on June 14, 2022, has been revised to reflect the changes as referenced below:
 Miscellaneous or other “housekeeping” changes such as “date” changes were made to the various sections of the Town’s Investment Policy as noted in the attached red-line copy of the policy statement.
 Updates to the language in section XIV Qualified Dealers stating an annual review of the financial condition and registrations of qualified bidders will be conducted by the Treasurer. A current audited financial statement is required to be on file for each financial institution and broker/dealer in which the (entity) invests.

Whenever revisions to the Investment Policy are considered, the proposed revisions are reviewed and discussed by Finance Department staff to ensure compliance with stated investment objectives, the Town’s adopted Investment Policy and State law.

CONCLUSION
The attached proposed Investment Policy has been revised to include the proposed changes referenced above. It is recommended that Town Council adopt the attached Resolution No. 2022-19 approving the attached Investment Policy for Fiscal Year 2022- 2023.

ATTACHMENTS
A. 2021-22 Red Lined Statement of Investment Policy
B. 2022-23 Proposed Statement of Investment Policy
Investment Guidelines and Strategy
Investment Procedures: Internal Controls - Guidelines
Cash Controls: Independent Auditors' Procedure
Segregation of Treasury Responsibilities
C. Glossary
D. Resolution No. 2022-19

2021-22 Red Lined Stmnt.docx

TOWN OF APPLE VALLEY

STATEMENT OF INVESTMENT POLICY
2020-212022-23
I.GENERAL INTRODUCTION
Under the laws of the State of California, it is the responsibility of the Town Treasurer, at the direction of the Town Council, to secure and protect the public funds of the Town, and to establish proper safeguards, controls, and procedures to maintain these funds in a lawful, rational and auspicious manner. Said maintenance shall include the prudent and secure investment of those funds that are deemed temporarily excess, in a manner anticipated to provide additional benefit to the people of the Town of Apple Valley.

This Statement of Investment Policy will be provided annually for the review and approval of the Town Council in an open public meeting. It will be provided to securities dealers, banks, and brokers currently approved for conducting investment transactions with the Town Treasurer’s office in the ongoing effort to manage the excess cash portfolio; to other affected persons or entities; and to any member of the electorate wishing to review this document upon request. The Treasurer reserves the right to provide these documents on a cost basis.

II. SCOPE
This Statement of Investment Policy pertains to those temporarily surplus funds under the control of the Treasurer, designated for the daily ongoing operations of the Town; and concerns the deposit, maintenance, safekeeping, and preservation of all such funds, and the investments made with these funds. This Policy does not apply to pension trust funds, deferred compensation funds, and certain other trust or non-operating funds.

III. PURPOSE
The purpose of this Statement of Investment Policy is to provide the Town Council, and those involved in servicing the investment requirements of the Town, and any other interested party, a clear understanding of the regulations and internal guidelines that will be observed in maintaining and investing those pooled funds deemed temporarily excess.

This statement is intended to provide guidelines for the prudent investment of the Town's temporary idle cash and outline the procedures for maximizing the efficiency of the Town's cash management system. The ultimate goal is to enhance the economic status of the Town while safeguarding its assets.

IV. OBJECTIVE
The Town's cash management system is designed to accurately monitor and forecast revenues and expenditures, thus enabling the Town to invest funds to the fullest extent possible. The Town attempts to obtain the highest yield possible only after the criteria established for safety and liquidity have been met.

The Town of Apple Valley operates its pooled idle cash investments with judgment and care, under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived. This affords the Town a broad spectrum of investment opportunities as long as the investment is deemed prudent and is allowable under current legislation of the State of California Government Code Section 53600 et seq. and the general laws of the Town of Apple Valley.

The Town of Apple Valley strives to maintain the level of investment of all idle funds as near 100% as possible, through daily and projected cash flow determinations. Idle cash management and investment transactions are the responsibility of the Town Treasurer or his/her designee.

Criteria for selecting investments and the order of priority are:

1. Safety: The safety and risk associated with an investment refers to the potential loss of principal, interest, or a combination of these amounts. The Town only operates in those investments that are considered very safe.

2. Liquidity: This refers to the ability to "cash in" at any moment in time with a minimal chance of losing some portion of principal or interest.

3. Yield: Yield is the potential dollar earnings an investment can provide, and sometimes is referred to as the rate of return.

4. Safekeeping: Securities purchased shall be held in third party safekeeping in the Trust Department of a financial institution, in the Town's name and control. The account established shall be protected from seizure by creditors should the financial institution holding the Town's securities file for bankruptcy protection. The basic premise underlying the Town's investment philosophy is and continues to be, to ensure that surplus funds are always safe and available when needed.

V. DELEGATION OF INVESTMENT AUTHORITY
Authority to manage the Town of Apple Valley's investment program is derived from Town of Apple Valley Council Resolution No. 2020-352022-19XX Management responsibility investment program is hereby delegated for Fiscal Year 2020-212022-23 to the Town or his/her designee, who shall establish written procedures for the operation of the investment program consistent with this Investment Policy. Procedures should include references to: safekeeping, repurchase agreements, wire transfer agreements, banking service contracts, and collateral/ depository agreements. 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 procedures established by the Town Treasurer or his/her designee.

The Town Treasurer or his/her designee shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate officials.

VI. STANDARD OF PRUDENCE
The Treasurer shall perform the investment function in conjunction with the “Prudent Person Rule.” This rule states, in principle that whenever investing property for the benefit of others, a trustee shall exercise the judgment and care, under circumstances then prevailing that persons of prudence, discretion, and intelligence, would exercise in the management of their own affairs not in regards to speculation, but in regard to the permanent disposition of their funds, considering the probability of safety of, as well as the probable income from their capital. The Treasurer and his designees are considered to have a fiduciary, trustee, relationship with the public for the public funds and all investment decisions will be made in a manner sustaining this responsibility.

VII. AUTHORIZED INVESTMENTS
The California Government Code allows the Town to invest in the following media:

Securities of the U.S. Government, or its government sponsored agencies Small Business Administration loans
Certificates of deposit, placed with commercial banks and savings and loan companies Negotiable certificates of deposit
Bankers’ acceptances
Commercial paper
Corporate notes and bonds, including medium term notes
State of California Local Agency Investment Fund
Repurchase agreements
Reverse repurchase agreements
Passbook savings account demand deposits
County Treasurer demand deposits
Asset-backed and mortgage-backed securities
Money market mutual funds
As a matter of practice, however, the Town of Apple Valley generally limits its investments to the following vehicles:

U.S. Treasury Bills - Issued weekly with maturity dates up to one year. They are issued and traded on a discount basis with interest figured on a 360-day basis, actual number of days. They are issued in amounts of $10,000 and up, in multiples of $5,000. They are a highly liquid security.

U.S. Treasury Notes - Initially issued with two- to ten-year maturities. They are actively traded in a large secondary market and are very liquid. The Treasury may issue Note issues with a minimum of $1,000; however, the average minimum is $5,000.

Agency/Government Sponsored Enterprise Issues - Guaranteed directly or indirectly by the United States Government. All agency/GSE obligations qualify as legal investments and are acceptable as security for public deposits.

These securities usually provide higher yields than U.S. Treasury securities with generally all of the same advantages in terms of safety and liquidity. Examples include:

FICBs (Federal Intermediate Credit Bank Debentures) - Loans to lending institutions used to finance the short-term and intermediate needs of farmers, such as seasonal production. These securities are usually issued monthly in minimum denominations of $3,000 with a nine-month maturity. Interest is payable at maturity and is calculated on a 360-day, 30-day month basis.

FFCBs (Federal Farm Credit Bank) - Debt instruments used to finance the short and intermediate term needs of farmers and the national agricultural industry. They are issued monthly with three- and six-month maturities. The FFCB issues larger issues (one to ten year) on a periodic basis. These issues are highly liquid.

FLBs (Federal Land Bank Bonds) - Long-term mortgage credit provided to farmers by Federal Land Banks. These bonds are issued at irregular times for various maturities ranging from a few months to ten years. The minimum denomination is $1,000. They carry semi-annual coupons. Interest is calculated on a 360-day, 30-day month basis.

FHLBs (Federal Home Loan Bank Notes and Bonds) - Issued by the Federal Home Loan Bank System to help finance the housing industry. The notes and bonds provide liquidity and home mortgage credit to savings and loan associations, mutual savings banks, cooperative banks, insurance companies, and mortgage-lending institutions. They are issued irregularly for various maturities. The minimum denomination is $5,000. The notes are issued with maturities of less than one year and interest is paid at maturity. The bonds are issued with various maturities and carry semi-annual coupons. Interest is calculated on a 360-day, 30-day month basis.

FNMAs (Federal National Mortgage Association) - Used to assist the home mortgage market by purchasing mortgages insured by the Federal Housing Administration and the Farmers Home Administration, as well as those guaranteed by the Veterans Administration. They are issued about four times a year for maturities ranging from a few months to eight years. They are issued in minimum denominations of $10,000. They carry semi-annual coupons. Interest is computed on a 360-day, 30-day month basis.

FHLMCs (Federal Home Loan Mortgage Corporation) - A government-sponsored enterprise established to develop the secondary market for conventional home mortgages. Mortgages are purchased solely from the Federal Home Loan Bank System member lending institutions whose deposits are insured by agencies of the United States Government. They are issued for various maturities and in minimum denominations of $10,000. Interest is paid semi-annually and is calculated on a 360-day, 30-day month basis.

Other federal agency issues are Small Business Administration notes (SBAs), Government National Mortgage Association notes (GNMAs), and Tennessee Valley Authority notes (TVAs).

As a matter of practice, the Town does not invest in these issues as they do not suit our purposes as well as other investment opportunities available.

The Town limits its investments to no more than 60% of its surplus funds in any one Federal Agency.

Bankers’ Acceptances - Short-term credit arrangements to enable businesses to obtain funds to finance commercial transactions. They are time drafts drawn on a bank by an exporter or importer to obtain funds to pay for specific merchandise. By its acceptance, the bank becomes primarily liable for the payment of the draft at its maturity. An acceptance is a high-grade negotiable instrument. Bankers Acceptances can be purchased in various denominations for 30, 60, or 90 days, but no longer than -180 days.

The interest is calculated on a 360-day discount basis similar to Treasury Bills. Local agencies may not invest more than 40% of their surplus funds in bankers’ acceptances or more than 10% of the agency’s surplus funds in bankers’ acceptances of any one commercial bank.

Certificates of Deposit - Time deposits of a bank or savings and loan. They are purchased in various denominations with maturities ranging from 30 to 360 days. The interest is calculated on a 360-day, actual-day month basis and is payable monthly.

Negotiable Certificates of Deposit - Unsecured obligations of the financial institution, bank or savings and loan, 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 are considered for investment. The Town’s total investment in negotiable certificates of deposit may not exceed 30% of surplus funds.

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.

The Town is permitted by State law to invest in commercial paper of "prime" quality of the highest ranking or of the highest letter and numerical rating as provided for by a nationally recognized statistical-rating organization (NRSRO).

Eligible paper is further limited to issuing corporations that are organized and operating within the United States and having total assets in excess of five hundred million dollars ($500,000,000) and having an “A” or higher rating for the issuer’s debt other than commercial paper as rated by an NRSRO. Commercial Paper issued by an Issuer that has a rating of “A” on their debt other than commercial paper but are on credit watch for a possible downgrade by an NRSRO shall not be considered for investment purposes.

Purchases of eligible commercial paper may not exceed 270 days maturity nor represent more than 10% of the outstanding paper of an issuing corporation. Purchases of commercial paper may not exceed 25 percent of the portfolio.

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. Corporate Notes issued by an issuer that has a rating of “A” but are on credit watch for a possible downgrade by a nationally recognized rating agency shall not be considered for investment purposes. If the security's credit rating falls below an "A" rating by one of these agencies, then awareness is heightened, and the security monitored closely to determine if credit risk has been significantly increased. If a security falls below an "A" rating by both rating agencies, then the Town Treasurer or his/her designee will evaluate the need to sell the security prior to maturity.

Further restrictions on the purchase of medium-term corporate notes are a maximum term of five years to maturity and total investments in medium term corporate notes may not exceed 30% of the local agency's surplus funds or 5% in any one issuer name.

Repurchase Agreements - A repurchase agreement is a short-term investment transaction. Banks buy temporarily idle funds from a customer by selling U.S.

Government or other securities with a contractual agreement to repurchase the same securities on a future date. Repurchase agreements are typically for one to ten days in maturity. The customer receives interest from the bank. The interest rate reflects both the prevailing demand for Federal funds and the maturity of the repurchase agreement. Some banks will execute repurchase agreements for a minimum of $100,000 to $500,000, but most banks have a minimum of $1,000,000. The term of a repurchase agreement may not exceed one year. The market value of securities that underlay a repurchase agreement shall be valued at 102 percent or greater of the funds borrowed against those securities and the value shall be adjusted no less than quarterly. Repurchase Agreements can only be executed with financial institutions or broker/dealers that have signed a Master Repurchase Agreement with the Town.

Reverse Repurchase Agreements - A reverse repurchase agreement is the opposite of a repurchase agreement. The Town loans a security to a bank in exchange for cash. The Town agrees to pay off the loan with interest on a future date. As this type of investment actually involves a loan arrangement, the Town may not invest more than 10% of its surplus funds in reverse repurchase agreements and must always match its maturities to the reinvestment. Reverse repurchase agreements may be utilized only when either of the following conditions are met:

1. The security was owned or specifically committed to purchase, by the local agency, prior to December 31, 1994, and was sold using a reverse repurchase agreement on December 31, 1994.

2. The security:
a. to be sold has been owned and fully paid for a minimum of 30 days prior to sale; and
b. total of all reverse repurchase agreements owned does not exceed 10 percent of the base value of the portfolio; and
c. agreement does not exceed a term of 92 days, unless the agreement includes a written codicil guaranteeing a minimum earning or spread for the entire period between the sale of a security using a reverse repurchase agreement and the final maturity date of the same security.

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 $40,000,000 for any agency. The Town is restricted to a maximum of fifteen transactions per month. 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. The State retains an amount for reasonable costs of making the investments, not to exceed onequarter of one percent of the earnings. 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." Money Market Mutual Funds - Shares of beneficial interest issued by diversified management companies. To be eligible for investment, shares must:

1. attain the highest rating provided by Moody's Investors Service, Inc., which is currently "Aaa," and/or Standard and Poor's Corporation, which is currently "AAA;" and,

2. the investment adviser managing the shares must be registered with the Securities and Exchange Commission with not less than five years’ experience investing in instruments authorized under California Government Code §53601 subdivisions (a) to (m) inclusive, and with assets under management in excess of five hundred million dollars ($500,000,000); and,

3. the purchase price of shares shall not include any commission that these companies may charge; and,

4. investment in shares shall not exceed 20 percent of surplus funds.

However, no more than 10 percent of the Town’s surplus funds may be invested in shares of beneficial interest of any one mutual fund. Furthermore, any investment in a money market mutual fund must comply with other self-imposed restrictions as specified in this Investment Policy.

Asset-Backed and Mortgage-Backed Security - Bonds backed by payments from receivables/mortgages having a maximum of five years maturity. These securities must have an "AA" or better rating by Moody's Investors Services, Inc., and/or Standard and Poor's Corporation. No more than 20% of the Town's surplus money may be invested in these securities.

VIII. INVESTMENT OF BOND PROCEEDS
When investing proceeds from the issuance of bonds, the Town of Apple Valley will follow this Investment Policy when determining allowable investments. Should the trust agreement of a particular bond issue be more restrictive than the Town's policy on permitted investments, then the trust agreement will take precedence.

IX. TOWN CONSTRAINTS
The Town Treasurer or his/her designee will evaluate local banks and savings institutions and may invest idle cash funds with such institutions when the criteria for prudent investment previously stated are met. The Town operates its investment pool according to State and self-imposed constraints. It does not buy stocks; it does not speculate; it does not deal in futures or options. Any investment extending beyond a five-year period requires prior Town Council approval. Additionally, a minimum of 20% of the outstanding investments must mature within a one-year time period.

X. SAFEKEEPING AND COLLATERALIZATION
All security transactions, including collateral for repurchase agreements, entered into by the Town shall be conducted on a delivery-versus-payment (DVP) basis. Securities will be held by a thirdpartythird-party custodian designated by the Town Treasurer or his/her designee.

Collateralization will be required on two types of investments: certificates of deposit and repurchase (and reverse repurchase) agreements. In order to anticipate market changes and provide a level of security for all funds, a minimum collateralization level is required.

Surplus funds must be deposited in State or national banks, State or Federal savings and loan associations, or State or Federal credit unions within the State of California. The deposits cannot exceed the amount of the bank's or savings and loan's paid-up capital and surplus.

The bank or savings and loan must secure public funds deposits with eligible securities having a market value of 110% of the total amount of the deposits. State law also allows as an eligible security, first trust deeds having a value of 150% of the total amount of the deposits. A third class of collateral is 105% in the form of a letter of credit drawn on the Federal Home Loan Bank.

The Town Treasurer or his/her designee may waive security for that portion of a deposit, which is insured pursuant to Federal law. Currently, the first $100,000 of a deposit is federally insured. Deposits in excess of $100,000 are collateralized as previously indicated.

XI. DERIVATIVE INVESTMENTS
A derivative is a generic term often used to categorize a wide variety of financial instruments whose value "depends on" or is "derived from" the value of an underlying asset, reference rate, or index.

Investments in derivative instruments are limited to debt securities that have periodic increases, or step-up interest rate adjustments that provide upward mobility in yield return. Investments in debt securities, which contain a callable feature are also allowable, but must comply with other restrictions as specified in this Investment Policy.

Investments purchased after June 19, 1995, in derivative instruments known as "inverse floaters," "dual index," or "stepped inverse" securities that produce higher than market yields at purchase date (when interest rates are low), but have the possibility of producing low or no coupon rates as market interest rates rise through the life of the instrument are not allowable. Furthermore, investments in range notes or interest-only strips that are derived from a pool of mortgages are not allowable. However, debt securities that have a floor or a built-in feature that prevents the instrument from potentially returning no yield are allowable.

XII. POLICY COMPLIANCE REGULATIONS
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 is not 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 noncompliance with the provisions of this Investment Policy. Additionally, adequate disclosure as to all instances of noncompliance, and the efforts undertaken to bring the portfolio into compliance, must be made on the monthly Treasurer’s Report.

XIII. REPORTING
Under provisions of Section 53646 of the California Government Code, the Treasurer or his/her designee shall render a quarterly investment report to the Town Council, the Town Manager, and the Town Attorney within 30 days following the end of the quarter covered by the report. However, as a matter of practice, a monthly report shall be submitted listing the type of investments, institution, date of maturity, par value, amount of deposit, rate of interest, current market value for all securities, and such other data as may be required by the Town Council on a monthly basis.

XIV. QUALIFIED DEALERS
The Town of Apple Valley shall transact business only with banks, savings and loans, and registered investment securities dealers. The Town will limit the number of broker/dealers authorized to do business with the Town to no more than one (1)

broker/dealer for every $10,000,000 of portfolio size. Each authorized broker/dealer shall be required to annually file a signed certification with the Town Treasurer certifying that they have read and understand the Town’s most recently adopted investment policy. The Town Treasurer or his/her designee will maintain a list of financial institutions authorized to provide investment services. In addition, a list will also be maintained of approved broker/dealers who are authorized to provide investment services in the State of California. These may include "primary" and "regional" broker/dealers with offices located in the State of California. All financial institutions and broker/dealers who desire to become qualified bidders for investment transactions must be approved by and supply the Town Treasurer or his/her designee with a completed broker/dealer questionnaire.

An annual review of the financial condition and registrations of qualified bidders will be conducted by the Treasurer. A current audited financial statement is required to be on file for each financial institution and broker/dealer in which the (entity) invests.

XV. POLICY REVIEW
This Statement of Investment Policy shall be reviewed at least annually to ensure its consistency with the overall objectives of preservation of principal, liquidity and return, and its relevance to current law, financial and economic trends.

Should conditions change or legislation become effective that behooves subsequent changes or a liberalization of terms within the policy during the next fiscal year, the revised policy will be submitted to Council for adoption of the recommended action.

TOWN OF APPLE VALLEY

INVESTMENT GUIDELINES AND STRATEGY
I. Guidelines - Guidelines are established to direct and control activities in such a manner that previously established goals are achieved.

II. Investment Transaction - Every investment transaction must be authorized and reviewed by the Treasurer or his/her designee.

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

IV. Competitive Bids - Purchase and sales of securities are made on the basis of competitive offers and bids when practical.

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

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

Bankers Acceptances 40% Section 53601(f)
Commercial Paper 25% Section 53601(g)
Negotiable Certificates of Deposit 30% Section 53601(h) Reverse Repurchase Agreements 20% Section 53601(i)
Medium Term Notes 30% Section 53601(j)
Money Market Mutual Funds 20% Section 53601(k)
Asset-Backed/Mortgage-Backed Securities 20% Section 53601(n) Federal Agency restriction 60% per Agency Section VI of Policy Local Agency Investment Fund $40,000,000 per Section VI of Policy Portfolio Maturing within one year 20% per Section IX of Policy VII. 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.

VIII. Diversification - The portfolio should consist of a mix of various types of securities, issuers, and maturities.

IX. Evaluate Certificates of Deposit –
(a) Certificates of Deposit shall be evaluated in terms of FDIC coverage. For deposits in excess of the insured maximum of $100,000, approved collateral at full market value shall be required. (California Government Code Section 53652 and/or 53651(m) and 53651.2(a)(1).

TOWN OF APPLE VALLEY

INVESTMENT GUIDELINES AND STRATEGY
(Continued)
(b) Negotiable Certificates of Deposit shall be evaluated in terms of the credit worthiness of the issuer, as these deposits are uninsured and uncollateralized promissory notes.

X. Strategy - Strategy refers to the ability to manage financial resources in the most advantageous manner.

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

XII. Implementing Investment Strategy - Investment transactions are executed which conform with anticipated interest rate trends and the current investment strategy plan.

XIII. Rapport - A close working relationship is maintained with 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 Treasurer or his/her designee for liquidity planning purposes.

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

TOWN OF APPLE VALLEY

INVESTMENT PROCEDURES

INTERNAL CONTROL - GUIDELINES

OBJECTIVES OF INTERNAL CONTROL
Internal control is the plan of organization and all the related systems established by the management's objective of ensuring, as far as practicable:

1. The orderly and efficient conduct of its business, including adherence to management policies.

2. The safeguarding of assets.

3. The prevention or detection of errors and fraud.

4. The accuracy and completeness of the accounting records.

5. The timely preparation of reliable financial information.

LIMITATIONS OF INTERNAL CONTROL
No internal control system, however elaborate, can by itself guarantee the achievement of management's objectives. Internal control can provide only reasonable assurance that the objectives are met, because of its inherent limitations, including:

1. Management's usual requirement that a control be cost-effective.

2. The direction of most controls at recurring, rather than unusual, types of transactions.

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

4. Potential for collusion that circumvents controls dependent on the segregation of functions.

5. Potential for a person responsible for exercising control abusing that responsibility; a responsible staff member could be in a position to override controls which management has set up.

ELEMENTS OF INTERNAL CONTROL
Elements of a system of internal control are the means by which an organization can satisfy the objectives of internal control. These elements are:

1. ORGANIZATION
Specific responsibility for the performance of duties should be assigned and lines of authority and reporting clearly identified and understood.

2. PERSONNEL
Personnel should have capabilities commensurate with their responsibilities.

Personnel selection and training policies together with the quality and quantity of supervision are thus important.

TOWN OF APPLE VALLEY

INVESTMENT PROCEDURES

INTERNAL CONTROL - GUIDELINES
(Continued)

3. SEGREGATION OF FUNCTIONS
Segregation of incompatible functions reduces the risk that a person is in a position both to perpetrate and conceal errors or fraud in the normal course of duty. If two parts of a transaction are handled by different people, collusion is necessary to conceal errors or fraud. In particular, the functions that should be considered when evaluating segregation of functions are authorization, execution, recording, custody of assets, and performing reconciliations.

4. AUTHORIZATION
All transactions should be authorized by an appropriate responsible 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. Delegation of authority to authorize transactions should be handled very carefully.

5. 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.

TOWN OF APPLE VALLEY

CASH CONTROLS

PROCEDURES PERFORMED BY EXTERNAL AUDITORS WITH RESPECT TO CASH

RECEIPTS
A. Town procedures and controls are reviewed. Some of the system strengths are:

1. Receipts are controlled upon receipt by proper registration devices.

2. Receipts are reconciled on a daily basis.

3. Amounts are deposited intact.

4. All bank accounts are authorized by resolution.

5. Cash counts are done by two or more individuals.

6. Bank reconciliations are reviewed.

7. Prompt posting of cash receipt entries in books.

8. Receipt forms are pre-numbered, accounted for, and physically secured.

9. Proper approval required for write-offs of customer accounts.

10. Checks are restrictively endorsed upon receipt or when run through cash register.

11. Adequate physical security over cash.

12. Individuals that handle cash do not post to customer account records or process billing statements.

13. Adequate supervision of Finance Department operations.

B. Significant revenues are confirmed directly with payer and compared with Town accounting records to make sure amounts are recorded properly.

C. Cash balances are substantiated by confirming all account balances recorded in the accounting records. Bank reconciliations are reviewed for propriety and recalculated by the auditor. All significant reconciling items on bank reconciliations are verified as valid reconciling items by proving to subsequent bank statements.

TOWN OF APPLE VALLEY

SEGREGATION OF RESPONSIBILITIES OF

THE TREASURY FUNCTIONS
Function

1. Authorization of investment
transactions:

Formal investment policy should be:
* Prepared by
* Submitted to
Investment transactions
should be approved by:

2. Execution of investment transactions

3. Investment transactions approved for
compliance with Investment policy
and/or State law.

4. Timely recording of investment
transactions:

Recording of investment
Transactions in the
Treasurer’s records.

Recording of investment transactions in
the accounting records

5. Verification of investment, Finance
Manager i.e., match broker confirmation to Treasurer's records

6. Safeguarding of assets and records:

Reconciliation of Treasurer's records
to the accounting records
Reconciliation of Treasurer's records to
bank statements and safekeeping
records
Responsibility
Town Treasurer
Town Council
Town Treasurer
Treasure/Finance Manager
Treasurer/Finance Manager
Senior Accountant/Accountant
Senior Accountant/Accountant
Finance Manager
Senior Accountant/Accountant
Senior Accountant/Accountant

TOWN OF APPLE VALLEY

SEGREGATION OF RESPONSIBILITIES

OF THE TREASURY FUNCTIONS
(Continued)

Function

6. Safeguarding of Assets and Records
(continued):

Annual review of:
(a) financial institution's financial
condition,
(b) safety, liquidity, and potential
yields of investment instruments.

7. No less than an annual review of
investment portfolio as prepared by
Treasurer including:
• Investment types
• Purchase Price
• Par values
• Market values
• Maturity dates
• Investment yields
• Conformance to stated investment
policy
• Safekeeping reports

Responsibility
Finance Manager with Treasurer's
approval
External Independent Auditors

The segregation of responsibilities of the Treasury functions as noted herein are intended to enhance the Town’s internal controls over cash handling procedures. It should be noted that from time to time, due to the limited size of the Finance department staff, segregation of responsibilities as outlined herein may not be followed in order to fulfill the business needs of the organization.

2020-212022-23

INVESTMENT POLICY

GLOSSARY
AGENCIES: Federal agency securities and/or government-sponsored enterprises.

ASKED: The price at which securities are offered.

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.

BENCHMARK: A comparative base for measuring the performance or risk tolerance of the investment portfolio. A benchmark should represent a close correlation to the level of risk and the average duration of the portfolio’s investments.

BID: The price offered by a buyer of securities. See Offer.

BROKER: A broker brings buyers and sellers together for a commission.

CERTIFICATE OF DEPOSIT (CD): A time deposit with a specific maturity evidenced by a certificate. Large-denomination CD’s are typically negotiable.

COLLATERAL: Securities, evidence of deposit or other property, which a borrower pledges to secure repayment of a loan. Also refers to securities pledged by a bank to secure deposits of public monies.

COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR): The official annual report for the Town of Apple Valley. It includes five combined statements for each individual fund and account group prepared in conformity with GAAP. It also includes supporting schedules necessary to demonstrate compliance with finance-related legal and contractual provisions, extensive introductory material, and a detailed Statistical Section.

COUPON: (a) The annual rate of interest that a bond’s issuer promises to pay the bondholder on the bond’s face value. (b) A certificate attached to a bond evidencing interest due on a payment date. DEALER: A dealer, as opposed to a broker, acts as a principal in all transactions, buying and selling for his own account.

DEBENTURE: A bond secured only by the general credit of the issuer.

DELIVERY VERSUS PAYMENT: There are two methods of delivery of securities:
delivery versus payment and delivery versus receipt. Delivery versus payment is delivery of securities with an exchange of money for the securities. Delivery versus receipt is delivery of securities with an exchange of signed receipt for the securities.

DERIVATIVES: (1) Financial instruments whose return profile is linked to, or derived from, the movement of one or more underlying index or security, and may include a

leveraging factor, or (2) financial contracts based upon notional amounts whose value is derived from an underlying index or security (interest rates, foreign exchange rates, equities or commodities).

DISCOUNT: The difference between the cost price of a security and its maturity when quoted at lower than face value. A security selling below original offering price shortly after sale also is considered to be at a discount.

DISCOUNT SECURITIES: Non-interest bearing money market instruments that are issued 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 returns.

FEDERAL CREDIT AGENCIES: Agencies of the Federal government set up to supply credit to various classes of institutions and individuals, e.g., S & L’s, small business firms, students, farmers, farm cooperatives, and exporters.

FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC): A federal agency that insures bank deposits, currently up to $250,000 per deposit.

FEDERAL FUNDS RATE: The rate of interest at which Fed 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 (currently 12 regional banks), which lend funds and provide correspondent banking services to member commercial banks, thrift 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.

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 United States created by Congress and consisting of a seven member Board of Governors in Washington, D. C., 12 regional banks and about 5,700 commercial banks that are members of the system.

GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA or Ginnie Mae):
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 full faith and credit of the U. S. Government.

Ginnie Mae securities are backed by the FHA, VA or FmHa mortgages. The term “passthroughs” is often used to describe Ginnie Maes.

LIQUIDITY: A liquid asset is one that can be converted easily and rapidly into cash without a substantial loss of value. In the money market, a security is said to be liquid if the spread between bid and asked prices is narrow and reasonable size can be done at those quotes.

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 – reverse repurchase agreements that establishes each party’s rights in the transactions. A master agreement will often 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.

MONEY MARKET: The market in which short-term debt instruments (bills, commercial paper, bankers’ acceptances, etc.) are issued and traded.

OFFER: The price asked by a seller of securities. (When you are buying securities, you ask for an offer.) See Asked 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 reserves 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.

PORTFOLIO: Collection of securities held by an investor.

PRIMARY DEALER: A group of government securities dealers who submit daily reports of market activity and positions and monthly financial statements to the Federal Reserve Bank of New York and are subject to its informal oversight. Primary dealers include Securities and Exchange Commission (SEC)-registered securities broker-dealers, banks, and a few unregulated firms.

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 do-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.

QUALIFIED PUBLIC DEPOSITORIES: A financial institution which 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 than its maximum liability and which has been 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 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 that is, increasing bank reserves.

SAFEKEEPING: A service to customers rendered by banks for a fee whereby securities and valuables for all types and descriptions are held in the bank’s vaults for protection.

SECONDARY MARKET: A market made for the purchase and sale of outstanding issues following the initial distribution.

SECURITIES AND EXCHANGE COMMISION: Agency created by Congress to protect investors in securities transactions by administering securities legislation.

SEC RULE 15C3-1: See Uniform Net Capital Rule.

STRUCTURED NOTES: Notes issued by Government Sponsored Enterprises (FHLB, FNMA, SLMA, etc.) and Corporations, which have imbedded options (E.G., call features, step-up coupons, floating rate coupons, derivative-based returns) into 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.

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 10 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.

YIELD: The rate of annual income return on an investment, expressed as a percentage. (a) INCOME YIELD is obtained by dividing the current dollar income by the current market price for the security. (b) NET YIELD or YIELD TO MATURITY is the current income yield minus any premium above par or plus any discount from par in purchase price, with the adjustment spread over the period from the date of purchase to the date of maturity of the bond.

2022-23 Proposed Stmnt.docx

TOWN OF APPLE VALLEY

STATEMENT OF INVESTMENT POLICY
2022-23
I.GENERAL INTRODUCTION
Under the laws of the State of California, it is the responsibility of the Town Treasurer, at the direction of the Town Council, to secure and protect the public funds of the Town, and to establish proper safeguards, controls, and procedures to maintain these funds in a lawful, rational and auspicious manner. Said maintenance shall include the prudent and secure investment of those funds that are deemed temporarily excess, in a manner anticipated to provide additional benefit to the people of the Town of Apple Valley.

This Statement of Investment Policy will be provided annually for the review and approval of the Town Council in an open public meeting. It will be provided to securities dealers, banks, and brokers currently approved for conducting investment transactions with the Town Treasurer’s office in the ongoing effort to manage the excess cash portfolio; to other affected persons or entities; and to any member of the electorate wishing to review this document upon request. The Treasurer reserves the right to provide these documents on a cost basis.

II. SCOPE
This Statement of Investment Policy pertains to those temporarily surplus funds under the control of the Treasurer, designated for the daily ongoing operations of the Town; and concerns the deposit, maintenance, safekeeping, and preservation of all such funds, and the investments made with these funds. This Policy does not apply to pension trust funds, deferred compensation funds, and certain other trust or non-operating funds.

III. PURPOSE
The purpose of this Statement of Investment Policy is to provide the Town Council, and those involved in servicing the investment requirements of the Town, and any other interested party, a clear understanding of the regulations and internal guidelines that will be observed in maintaining and investing those pooled funds deemed temporarily excess.

This statement is intended to provide guidelines for the prudent investment of the Town's temporary idle cash and outline the procedures for maximizing the efficiency of the Town's cash management system. The ultimate goal is to enhance the economic status of the Town while safeguarding its assets.

IV. OBJECTIVE
The Town's cash management system is designed to accurately monitor and forecast revenues and expenditures, thus enabling the Town to invest funds to the fullest extent possible. The Town attempts to obtain the highest yield possible only after the criteria established for safety and liquidity have been met.

The Town of Apple Valley operates its pooled idle cash investments with judgment and care, under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived. This affords the Town a broad spectrum of investment opportunities as long as the investment is deemed prudent and is allowable under current legislation of the State of California Government Code Section 53600 et seq. and the general laws of the Town of Apple Valley.

The Town of Apple Valley strives to maintain the level of investment of all idle funds as near 100% as possible, through daily and projected cash flow determinations. Idle cash management and investment transactions are the responsibility of the Town Treasurer or his/her designee.

Criteria for selecting investments and the order of priority are:

1. Safety: The safety and risk associated with an investment refers to the potential loss of principal, interest, or a combination of these amounts. The Town only operates in those investments that are considered very safe.

2. Liquidity: This refers to the ability to "cash in" at any moment in time with a minimal chance of losing some portion of principal or interest.

3. Yield: Yield is the potential dollar earnings an investment can provide, and sometimes is referred to as the rate of return.

4. Safekeeping: Securities purchased shall be held in third party safekeeping in the Trust Department of a financial institution, in the Town's name and control. The account established shall be protected from seizure by creditors should the financial institution holding the Town's securities file for bankruptcy protection. The basic premise underlying the Town's investment philosophy is and continues to be, to ensure that surplus funds are always safe and available when needed.

V. DELEGATION OF INVESTMENT AUTHORITY
Authority to manage the Town of Apple Valley's investment program is derived from Town of Apple Valley Council Resolution No. 2022-19 Management responsibility for the investment program is hereby delegated for Fiscal Year 2022-23 to the Town Treasurer or his/her designee, who shall establish written procedures for the operation of the investment program consistent with this Investment Policy. Procedures should include references to: safekeeping, repurchase agreements, wire transfer agreements, banking service contracts, and collateral/ depository agreements. 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 procedures established by the Town Treasurer or his/her designee.

The Town Treasurer or his/her designee shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate officials.

VI. STANDARD OF PRUDENCE
The Treasurer shall perform the investment function in conjunction with the “Prudent Person Rule.” This rule states, in principle that whenever investing property for the benefit of others, a trustee shall exercise the judgment and care, under circumstances then prevailing that persons of prudence, discretion, and intelligence, would exercise in the management of their own affairs not in regards to speculation, but in regard to the permanent disposition of their funds, considering the probability of safety of, as well as the probable income from their capital. The Treasurer and his designees are considered to have a fiduciary, trustee, relationship with the public for the public funds and all investment decisions will be made in a manner sustaining this responsibility.

VII. AUTHORIZED INVESTMENTS
The California Government Code allows the Town to invest in the following media:

Securities of the U.S. Government, or its government sponsored agencies Small Business Administration loans
Certificates of deposit, placed with commercial banks and savings and loan companies Negotiable certificates of deposit
Bankers’ acceptances
Commercial paper
Corporate notes and bonds, including medium term notes
State of California Local Agency Investment Fund
Repurchase agreements
Reverse repurchase agreements
Passbook savings account demand deposits
County Treasurer demand deposits
Asset-backed and mortgage-backed securities
Money market mutual funds
As a matter of practice, however, the Town of Apple Valley generally limits its investments to the following vehicles:

U.S. Treasury Bills - Issued weekly with maturity dates up to one year. They are issued and traded on a discount basis with interest figured on a 360-day basis, actual number of days. They are issued in amounts of $10,000 and up, in multiples of $5,000. They are a highly liquid security.

U.S. Treasury Notes - Initially issued with two- to ten-year maturities. They are actively traded in a large secondary market and are very liquid. The Treasury may issue Note issues with a minimum of $1,000; however, the average minimum is $5,000.

Agency/Government Sponsored Enterprise Issues - Guaranteed directly or indirectly by the United States Government. All agency/GSE obligations qualify as legal investments and are acceptable as security for public deposits.

These securities usually provide higher yields than U.S. Treasury securities with generally all of the same advantages in terms of safety and liquidity. Examples include:

FICBs (Federal Intermediate Credit Bank Debentures) - Loans to lending institutions used to finance the short-term and intermediate needs of farmers, such as seasonal production. These securities are usually issued monthly in minimum denominations of $3,000 with a nine-month maturity. Interest is payable at maturity and is calculated on a 360-day, 30-day month basis.

FFCBs (Federal Farm Credit Bank) - Debt instruments used to finance the short and intermediate term needs of farmers and the national agricultural industry. They are issued monthly with three- and six-month maturities. The FFCB issues larger issues (one to ten year) on a periodic basis. These issues are highly liquid.

FLBs (Federal Land Bank Bonds) - Long-term mortgage credit provided to farmers by Federal Land Banks. These bonds are issued at irregular times for various maturities ranging from a few months to ten years. The minimum denomination is $1,000. They carry semi-annual coupons. Interest is calculated on a 360-day, 30-day month basis.

FHLBs (Federal Home Loan Bank Notes and Bonds) - Issued by the Federal Home Loan Bank System to help finance the housing industry. The notes and bonds provide liquidity and home mortgage credit to savings and loan associations, mutual savings banks, cooperative banks, insurance companies, and mortgage-lending institutions. They are issued irregularly for various maturities. The minimum denomination is $5,000. The notes are issued with maturities of less than one year and interest is paid at maturity. The bonds are issued with various maturities and carry semi-annual coupons. Interest is calculated on a 360-day, 30-day month basis.

FNMAs (Federal National Mortgage Association) - Used to assist the home mortgage market by purchasing mortgages insured by the Federal Housing Administration and the Farmers Home Administration, as well as those guaranteed by the Veterans Administration. They are issued about four times a year for maturities ranging from a few months to eight years. They are issued in minimum denominations of $10,000. They carry semi-annual coupons. Interest is computed on a 360-day, 30-day month basis.

FHLMCs (Federal Home Loan Mortgage Corporation) - A government-sponsored enterprise established to develop the secondary market for conventional home mortgages. Mortgages are purchased solely from the Federal Home Loan Bank System member lending institutions whose deposits are insured by agencies of the United States Government. They are issued for various maturities and in minimum denominations of $10,000. Interest is paid semi-annually and is calculated on a 360-day, 30-day month basis.

Other federal agency issues are Small Business Administration notes (SBAs), Government National Mortgage Association notes (GNMAs), and Tennessee Valley Authority notes (TVAs).

As a matter of practice, the Town does not invest in these issues as they do not suit our purposes as well as other investment opportunities available.

The Town limits its investments to no more than 60% of its surplus funds in any one Federal Agency.

Bankers’ Acceptances - Short-term credit arrangements to enable businesses to obtain funds to finance commercial transactions. They are time drafts drawn on a bank by an exporter or importer to obtain funds to pay for specific merchandise. By its acceptance, the bank becomes primarily liable for the payment of the draft at its maturity. An acceptance is a high-grade negotiable instrument. Bankers Acceptances can be purchased in various denominations for 30, 60, or 90 days, but no longer than -180 days.

The interest is calculated on a 360-day discount basis similar to Treasury Bills. Local agencies may not invest more than 40% of their surplus funds in bankers’ acceptances or more than 10% of the agency’s surplus funds in bankers’ acceptances of any one commercial bank.

Certificates of Deposit - Time deposits of a bank or savings and loan. They are purchased in various denominations with maturities ranging from 30 to 360 days. The interest is calculated on a 360-day, actual-day month basis and is payable monthly.

Negotiable Certificates of Deposit - Unsecured obligations of the financial institution, bank or savings and loan, 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 are considered for investment. The Town’s total investment in negotiable certificates of deposit may not exceed 30% of surplus funds.

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.

The Town is permitted by State law to invest in commercial paper of "prime" quality of the highest ranking or of the highest letter and numerical rating as provided for by a nationally recognized statistical-rating organization (NRSRO).

Eligible paper is further limited to issuing corporations that are organized and operating within the United States and having total assets in excess of five hundred million dollars ($500,000,000) and having an “A” or higher rating for the issuer’s debt other than commercial paper as rated by an NRSRO. Commercial Paper issued by an Issuer that has a rating of “A” on their debt other than commercial paper but are on credit watch for a possible downgrade by an NRSRO shall not be considered for investment purposes.

Purchases of eligible commercial paper may not exceed 270 days maturity nor represent more than 10% of the outstanding paper of an issuing corporation. Purchases of commercial paper may not exceed 25 percent of the portfolio.

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. Corporate Notes issued by an issuer that has a rating of “A” but are on credit watch for a possible downgrade by a nationally recognized rating agency shall not be considered for investment purposes. If the security's credit rating falls below an "A" rating by one of these agencies, then awareness is heightened, and the security monitored closely to determine if credit risk has been significantly increased. If a security falls below an "A" rating by both rating agencies, then the Town Treasurer or his/her designee will evaluate the need to sell the security prior to maturity.

Further restrictions on the purchase of medium-term corporate notes are a maximum term of five years to maturity and total investments in medium term corporate notes may not exceed 30% of the local agency's surplus funds or 5% in any one issuer name.

Repurchase Agreements - A repurchase agreement is a short-term investment transaction. Banks buy temporarily idle funds from a customer by selling U.S.

Government or other securities with a contractual agreement to repurchase the same securities on a future date. Repurchase agreements are typically for one to ten days in maturity. The customer receives interest from the bank. The interest rate reflects both the prevailing demand for Federal funds and the maturity of the repurchase agreement. Some banks will execute repurchase agreements for a minimum of $100,000 to $500,000, but most banks have a minimum of $1,000,000. The term of a repurchase agreement may not exceed one year. The market value of securities that underlay a repurchase agreement shall be valued at 102 percent or greater of the funds borrowed against those securities and the value shall be adjusted no less than quarterly. Repurchase Agreements can only be executed with financial institutions or broker/dealers that have signed a Master Repurchase Agreement with the Town.

Reverse Repurchase Agreements - A reverse repurchase agreement is the opposite of a repurchase agreement. The Town loans a security to a bank in exchange for cash. The Town agrees to pay off the loan with interest on a future date. As this type of investment actually involves a loan arrangement, the Town may not invest more than 10% of its surplus funds in reverse repurchase agreements and must always match its maturities to the reinvestment. Reverse repurchase agreements may be utilized only when either of the following conditions are met:

1. The security was owned or specifically committed to purchase, by the local agency, prior to December 31, 1994, and was sold using a reverse repurchase agreement on December 31, 1994.

2. The security:
a. to be sold has been owned and fully paid for a minimum of 30 days prior to sale; and
b. total of all reverse repurchase agreements owned does not exceed 10 percent of the base value of the portfolio; and
c. agreement does not exceed a term of 92 days, unless the agreement includes a written codicil guaranteeing a minimum earning or spread for the entire period between the sale of a security using a reverse repurchase agreement and the final maturity date of the same security.

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 $40,000,000 for any agency. The Town is restricted to a maximum of fifteen transactions per month. 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. The State retains an amount for reasonable costs of making the investments, not to exceed onequarter of one percent of the earnings. 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." Money Market Mutual Funds - Shares of beneficial interest issued by diversified management companies. To be eligible for investment, shares must:

1. attain the highest rating provided by Moody's Investors Service, Inc., which is currently "Aaa," and/or Standard and Poor's Corporation, which is currently "AAA;" and,

2. the investment adviser managing the shares must be registered with the Securities and Exchange Commission with not less than five years’ experience investing in instruments authorized under California Government Code §53601 subdivisions (a) to (m) inclusive, and with assets under management in excess of five hundred million dollars ($500,000,000); and,

3. the purchase price of shares shall not include any commission that these companies may charge; and,

4. investment in shares shall not exceed 20 percent of surplus funds.

However, no more than 10 percent of the Town’s surplus funds may be invested in shares of beneficial interest of any one mutual fund. Furthermore, any investment in a money market mutual fund must comply with other self-imposed restrictions as specified in this Investment Policy.

Asset-Backed and Mortgage-Backed Security - Bonds backed by payments from receivables/mortgages having a maximum of five years maturity. These securities must have an "AA" or better rating by Moody's Investors Services, Inc., and/or Standard and Poor's Corporation. No more than 20% of the Town's surplus money may be invested in these securities.

VIII. INVESTMENT OF BOND PROCEEDS
When investing proceeds from the issuance of bonds, the Town of Apple Valley will follow this Investment Policy when determining allowable investments. Should the trust agreement of a particular bond issue be more restrictive than the Town's policy on permitted investments, then the trust agreement will take precedence.

IX. TOWN CONSTRAINTS
The Town Treasurer or his/her designee will evaluate local banks and savings institutions and may invest idle cash funds with such institutions when the criteria for prudent investment previously stated are met. The Town operates its investment pool according to State and self-imposed constraints. It does not buy stocks; it does not speculate; it does not deal in futures or options. Any investment extending beyond a five-year period requires prior Town Council approval. Additionally, a minimum of 20% of the outstanding investments must mature within a one-year time period.

X. SAFEKEEPING AND COLLATERALIZATION
All security transactions, including collateral for repurchase agreements, entered into by the Town shall be conducted on a delivery-versus-payment (DVP) basis. Securities will be held by a third-party custodian designated by the Town Treasurer or his/her designee.

Collateralization will be required on two types of investments: certificates of deposit and repurchase (and reverse repurchase) agreements. In order to anticipate market changes and provide a level of security for all funds, a minimum collateralization level is required.

Surplus funds must be deposited in State or national banks, State or Federal savings and loan associations, or State or Federal credit unions within the State of California. The deposits cannot exceed the amount of the bank's or savings and loan's paid-up capital and surplus.

The bank or savings and loan must secure public funds deposits with eligible securities having a market value of 110% of the total amount of the deposits. State law also allows as an eligible security, first trust deeds having a value of 150% of the total amount of the deposits. A third class of collateral is 105% in the form of a letter of credit drawn on the Federal Home Loan Bank.

The Town Treasurer or his/her designee may waive security for that portion of a deposit, which is insured pursuant to Federal law. Currently, the first $100,000 of a deposit is

federally insured. Deposits in excess of $100,000 are collateralized as previously indicated.

XI. DERIVATIVE INVESTMENTS
A derivative is a generic term often used to categorize a wide variety of financial instruments whose value "depends on" or is "derived from" the value of an underlying asset, reference rate, or index.

Investments in derivative instruments are limited to debt securities that have periodic increases, or step-up interest rate adjustments that provide upward mobility in yield return. Investments in debt securities, which contain a callable feature are also allowable, but must comply with other restrictions as specified in this Investment Policy.

Investments purchased after June 19, 1995, in derivative instruments known as "inverse floaters," "dual index," or "stepped inverse" securities that produce higher than market yields at purchase date (when interest rates are low), but have the possibility of producing low or no coupon rates as market interest rates rise through the life of the instrument are not allowable. Furthermore, investments in range notes or interest-only strips that are derived from a pool of mortgages are not allowable. However, debt securities that have a floor or a built-in feature that prevents the instrument from potentially returning no yield are allowable.

XII. POLICY COMPLIANCE REGULATIONS
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 is not 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 noncompliance with the provisions of this Investment Policy. Additionally, adequate disclosure as to all instances of noncompliance, and the efforts undertaken to bring the portfolio into compliance, must be made on the monthly Treasurer’s Report.

XIII. REPORTING
Under provisions of Section 53646 of the California Government Code, the Treasurer or his/her designee shall render a quarterly investment report to the Town Council, the Town Manager, and the Town Attorney within 30 days following the end of the quarter covered by the report. However, as a matter of practice, a monthly report shall be submitted listing the type of investments, institution, date of maturity, par value, amount of deposit, rate of interest, current market value for all securities, and such other data as may be required by the Town Council on a monthly basis.

XIV. QUALIFIED DEALERS
The Town of Apple Valley shall transact business only with banks, savings and loans, and registered investment securities dealers. The Town will limit the number of broker/dealers authorized to do business with the Town to no more than one (1) broker/dealer for every $10,000,000 of portfolio size. Each authorized broker/dealer shall be required to annually file a signed certification with the Town Treasurer certifying that

they have read and understand the Town’s most recently adopted investment policy. The Town Treasurer or his/her designee will maintain a list of financial institutions authorized to provide investment services. In addition, a list will also be maintained of approved broker/dealers who are authorized to provide investment services in the State of California. These may include "primary" and "regional" broker/dealers with offices located in the State of California. All financial institutions and broker/dealers who desire to become qualified bidders for investment transactions must be approved by and supply the Town Treasurer or his/her designee with a completed broker/dealer questionnaire.

An annual review of the financial condition and registrations of qualified bidders will be conducted by the Treasurer. A current audited financial statement is required to be on file for each financial institution and broker/dealer in which the (entity) invests.

XV. POLICY REVIEW
This Statement of Investment Policy shall be reviewed at least annually to ensure its consistency with the overall objectives of preservation of principal, liquidity and return, and its relevance to current law, financial and economic trends.

Should conditions change or legislation become effective that behooves subsequent changes or a liberalization of terms within the policy during the next fiscal year, the revised policy will be submitted to Council for adoption of the recommended action.

TOWN OF APPLE VALLEY

INVESTMENT GUIDELINES AND STRATEGY
I. Guidelines - Guidelines are established to direct and control activities in such a manner that previously established goals are achieved.

II. Investment Transaction - Every investment transaction must be authorized and reviewed by the Treasurer or his/her designee.

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

IV. Competitive Bids - Purchase and sales of securities are made on the basis of competitive offers and bids when practical.

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

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

Bankers Acceptances 40% Section 53601(f)
Commercial Paper 25% Section 53601(g)
Negotiable Certificates of Deposit 30% Section 53601(h) Reverse Repurchase Agreements 20% Section 53601(i)
Medium Term Notes 30% Section 53601(j)
Money Market Mutual Funds 20% Section 53601(k)
Asset-Backed/Mortgage-Backed Securities 20% Section 53601(n) Federal Agency restriction 60% per Agency Section VI of Policy Local Agency Investment Fund $40,000,000 per Section VI of Policy Portfolio Maturing within one year 20% per Section IX of Policy VII. 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.

VIII. Diversification - The portfolio should consist of a mix of various types of securities, issuers, and maturities.

IX. Evaluate Certificates of Deposit –
(a) Certificates of Deposit shall be evaluated in terms of FDIC coverage. For deposits in excess of the insured maximum of $100,000, approved collateral at full market value shall be required. (California Government Code Section 53652 and/or 53651(m) and 53651.2(a)(1).

TOWN OF APPLE VALLEY

INVESTMENT GUIDELINES AND STRATEGY
(Continued)
(b) Negotiable Certificates of Deposit shall be evaluated in terms of the credit worthiness of the issuer, as these deposits are uninsured and uncollateralized promissory notes.

X. Strategy - Strategy refers to the ability to manage financial resources in the most advantageous manner.

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

XII. Implementing Investment Strategy - Investment transactions are executed which conform with anticipated interest rate trends and the current investment strategy plan.

XIII. Rapport - A close working relationship is maintained with 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 Treasurer or his/her designee for liquidity planning purposes.

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

TOWN OF APPLE VALLEY

INVESTMENT PROCEDURES

INTERNAL CONTROL - GUIDELINES

OBJECTIVES OF INTERNAL CONTROL
Internal control is the plan of organization and all the related systems established by the management's objective of ensuring, as far as practicable:

1. The orderly and efficient conduct of its business, including adherence to management policies.

2. The safeguarding of assets.

3. The prevention or detection of errors and fraud.

4. The accuracy and completeness of the accounting records.

5. The timely preparation of reliable financial information.

LIMITATIONS OF INTERNAL CONTROL
No internal control system, however elaborate, can by itself guarantee the achievement of management's objectives. Internal control can provide only reasonable assurance that the objectives are met, because of its inherent limitations, including:

1. Management's usual requirement that a control be cost-effective.

2. The direction of most controls at recurring, rather than unusual, types of transactions.

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

4. Potential for collusion that circumvents controls dependent on the segregation of functions.

5. Potential for a person responsible for exercising control abusing that responsibility; a responsible staff member could be in a position to override controls which management has set up.

ELEMENTS OF INTERNAL CONTROL
Elements of a system of internal control are the means by which an organization can satisfy the objectives of internal control. These elements are:

1. ORGANIZATION
Specific responsibility for the performance of duties should be assigned and lines of authority and reporting clearly identified and understood.

2. PERSONNEL
Personnel should have capabilities commensurate with their responsibilities.

Personnel selection and training policies together with the quality and quantity of supervision are thus important.

TOWN OF APPLE VALLEY

INVESTMENT PROCEDURES

INTERNAL CONTROL - GUIDELINES
(Continued)

3. SEGREGATION OF FUNCTIONS
Segregation of incompatible functions reduces the risk that a person is in a position both to perpetrate and conceal errors or fraud in the normal course of duty. If two parts of a transaction are handled by different people, collusion is necessary to conceal errors or fraud. In particular, the functions that should be considered when evaluating segregation of functions are authorization, execution, recording, custody of assets, and performing reconciliations.

4. AUTHORIZATION
All transactions should be authorized by an appropriate responsible 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. Delegation of authority to authorize transactions should be handled very carefully.

5. 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.

TOWN OF APPLE VALLEY

CASH CONTROLS

PROCEDURES PERFORMED BY EXTERNAL AUDITORS WITH RESPECT TO CASH

RECEIPTS
A. Town procedures and controls are reviewed. Some of the system strengths are:

1. Receipts are controlled upon receipt by proper registration devices.

2. Receipts are reconciled on a daily basis.

3. Amounts are deposited intact.

4. All bank accounts are authorized by resolution.

5. Cash counts are done by two or more individuals.

6. Bank reconciliations are reviewed.

7. Prompt posting of cash receipt entries in books.

8. Receipt forms are pre-numbered, accounted for, and physically secured.

9. Proper approval required for write-offs of customer accounts.

10. Checks are restrictively endorsed upon receipt or when run through cash register.

11. Adequate physical security over cash.

12. Individuals that handle cash do not post to customer account records or process billing statements.

13. Adequate supervision of Finance Department operations.

B. Significant revenues are confirmed directly with payer and compared with Town accounting records to make sure amounts are recorded properly.

C. Cash balances are substantiated by confirming all account balances recorded in the accounting records. Bank reconciliations are reviewed for propriety and recalculated by the auditor. All significant reconciling items on bank reconciliations are verified as valid reconciling items by proving to subsequent bank statements.

TOWN OF APPLE VALLEY

SEGREGATION OF RESPONSIBILITIES OF

THE TREASURY FUNCTIONS
Function

1. Authorization of investment
transactions:

Formal investment policy should be:
* Prepared by
* Submitted to
Investment transactions
should be approved by:

2. Execution of investment transactions

3. Investment transactions approved for
compliance with Investment policy
and/or State law.

4. Timely recording of investment
transactions:

Recording of investment
Transactions in the
Treasurer’s records.

Recording of investment transactions in
the accounting records

5. Verification of investment, Finance
Manager i.e., match broker confirmation to Treasurer's records

6. Safeguarding of assets and records:

Reconciliation of Treasurer's records
to the accounting records
Reconciliation of Treasurer's records to
bank statements and safekeeping
records
Responsibility
Town Treasurer
Town Council
Town Treasurer
Treasure/Finance Manager
Treasurer/Finance Manager
Senior Accountant/Accountant
Senior Accountant/Accountant
Finance Manager
Senior Accountant/Accountant
Senior Accountant/Accountant

TOWN OF APPLE VALLEY

SEGREGATION OF RESPONSIBILITIES

OF THE TREASURY FUNCTIONS
(Continued)

Function

6. Safeguarding of Assets and Records
(continued):

Annual review of:
(a) financial institution's financial
condition,
(b) safety, liquidity, and potential
yields of investment instruments.

7. No less than an annual review of
investment portfolio as prepared by
Treasurer including:
• Investment types
• Purchase Price
• Par values
• Market values
• Maturity dates
• Investment yields
• Conformance to stated investment
policy
• Safekeeping reports

Responsibility
Finance Manager with Treasurer's
approval
External Independent Auditors

The segregation of responsibilities of the Treasury functions as noted herein are intended to enhance the Town’s internal controls over cash handling procedures. It should be noted that from time to time, due to the limited size of the Finance department staff, segregation of responsibilities as outlined herein may not be followed in order to fulfill the business needs of the organization.

2022-23

INVESTMENT POLICY

GLOSSARY
AGENCIES: Federal agency securities and/or government-sponsored enterprises.

ASKED: The price at which securities are offered.

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.

BENCHMARK: A comparative base for measuring the performance or risk tolerance of the investment portfolio. A benchmark should represent a close correlation to the level of risk and the average duration of the portfolio’s investments.

BID: The price offered by a buyer of securities. See Offer.

BROKER: A broker brings buyers and sellers together for a commission.

CERTIFICATE OF DEPOSIT (CD): A time deposit with a specific maturity evidenced by a certificate. Large-denomination CD’s are typically negotiable.

COLLATERAL: Securities, evidence of deposit or other property, which a borrower pledges to secure repayment of a loan. Also refers to securities pledged by a bank to secure deposits of public monies.

COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR): The official annual report for the Town of Apple Valley. It includes five combined statements for each individual fund and account group prepared in conformity with GAAP. It also includes supporting schedules necessary to demonstrate compliance with finance-related legal and contractual provisions, extensive introductory material, and a detailed Statistical Section.

COUPON: (a) The annual rate of interest that a bond’s issuer promises to pay the bondholder on the bond’s face value. (b) A certificate attached to a bond evidencing interest due on a payment date. DEALER: A dealer, as opposed to a broker, acts as a principal in all transactions, buying and selling for his own account.

DEBENTURE: A bond secured only by the general credit of the issuer.

DELIVERY VERSUS PAYMENT: There are two methods of delivery of securities:
delivery versus payment and delivery versus receipt. Delivery versus payment is delivery of securities with an exchange of money for the securities. Delivery versus receipt is delivery of securities with an exchange of signed receipt for the securities.

DERIVATIVES: (1) Financial instruments whose return profile is linked to, or derived from, the movement of one or more underlying index or security, and may include a

leveraging factor, or (2) financial contracts based upon notional amounts whose value is derived from an underlying index or security (interest rates, foreign exchange rates, equities or commodities).

DISCOUNT: The difference between the cost price of a security and its maturity when quoted at lower than face value. A security selling below original offering price shortly after sale also is considered to be at a discount.

DISCOUNT SECURITIES: Non-interest bearing money market instruments that are issued 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 returns.

FEDERAL CREDIT AGENCIES: Agencies of the Federal government set up to supply credit to various classes of institutions and individuals, e.g., S & L’s, small business firms, students, farmers, farm cooperatives, and exporters.

FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC): A federal agency that insures bank deposits, currently up to $250,000 per deposit.

FEDERAL FUNDS RATE: The rate of interest at which Fed 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 (currently 12 regional banks), which lend funds and provide correspondent banking services to member commercial banks, thrift 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.

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 United States created by Congress and consisting of a seven member Board of Governors in Washington, D. C., 12 regional banks and about 5,700 commercial banks that are members of the system.

GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA or Ginnie Mae):
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 full faith and credit of the U. S. Government.

Ginnie Mae securities are backed by the FHA, VA or FmHa mortgages. The term “passthroughs” is often used to describe Ginnie Maes.

LIQUIDITY: A liquid asset is one that can be converted easily and rapidly into cash without a substantial loss of value. In the money market, a security is said to be liquid if the spread between bid and asked prices is narrow and reasonable size can be done at those quotes.

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 – reverse repurchase agreements that establishes each party’s rights in the transactions. A master agreement will often 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.

MONEY MARKET: The market in which short-term debt instruments (bills, commercial paper, bankers’ acceptances, etc.) are issued and traded.

OFFER: The price asked by a seller of securities. (When you are buying securities, you ask for an offer.) See Asked 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 reserves 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.

PORTFOLIO: Collection of securities held by an investor.

PRIMARY DEALER: A group of government securities dealers who submit daily reports of market activity and positions and monthly financial statements to the Federal Reserve Bank of New York and are subject to its informal oversight. Primary dealers include Securities and Exchange Commission (SEC)-registered securities broker-dealers, banks, and a few unregulated firms.

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 do-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.

QUALIFIED PUBLIC DEPOSITORIES: A financial institution which 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 than its maximum liability and which has been 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 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 that is, increasing bank reserves.

SAFEKEEPING: A service to customers rendered by banks for a fee whereby securities and valuables for all types and descriptions are held in the bank’s vaults for protection.

SECONDARY MARKET: A market made for the purchase and sale of outstanding issues following the initial distribution.

SECURITIES AND EXCHANGE COMMISION: Agency created by Congress to protect investors in securities transactions by administering securities legislation.

SEC RULE 15C3-1: See Uniform Net Capital Rule.

STRUCTURED NOTES: Notes issued by Government Sponsored Enterprises (FHLB, FNMA, SLMA, etc.) and Corporations, which have imbedded options (E.G., call features, step-up coupons, floating rate coupons, derivative-based returns) into 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.

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 10 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.

YIELD: The rate of annual income return on an investment, expressed as a percentage. (a) INCOME YIELD is obtained by dividing the current dollar income by the current market price for the security. (b) NET YIELD or YIELD TO MATURITY is the current income yield minus any premium above par or plus any discount from par in purchase price, with the adjustment spread over the period from the date of purchase to the date of maturity of the bond.

RESOLUTION NO. 2022-19

A RESOLUTION OF THE TOWN COUNCIL OF THE

TOWN OF APPLE VALLEY, CALIFORNIA, ADOPTING

THE TOWN OF APPLE VALLEY INVESTMENT POLICY

THE TOWN COUNCIL OF THE TOWN OF APPLE VALLEY DOES HEREBY RESOLVE AS FOLLOWS:

WHEREAS, in accordance with Section 53607 of the Government Code of the State of California, the Town Treasurer is hereby authorized (a) to invest such portion of any sinking fund of, or idle money in, the Town Treasury, not required for the immediate necessities of the Town as is deemed wise or expedient, in securities in which this Council is authorized to invest such sums by the provisions of State Government Code Section 53601 and Section 53635, limited by the Town’s Investment Policy; and (b) to sell, or exchange for other eligible securities, and reinvest the proceeds of the securities purchased. The Town Treasurer shall make a monthly report of such transactions to this Council.

NOW, THEREFORE, BE IT RESOLVED that the Town Council of the Town of Apple Valley has adopted the 2022-23 Statement of Investment Policy as set forth in the attached document. The Town Clerk shall certify to the passage and adoption of this resolution, and it shall thereupon be in full force and effect.

APPROVED AND ADOPTED by the Town Council of the Town of Apple Valley, this 28th day of June 2022.
_______________________________
Kari Leon, Mayor
ATTEST:
_______________________________
La Vonda M-Pearson, Town Clerk

Town Council Agenda Report
Date: June 28, 2022
To: Honorable Mayor and Town Council
Subject: ADOPTION OF FISCAL YEAR 2022-2023 APPRORIATIONS LIMIT

From: Douglas Robertson, Town Manager
Submitted by: Sydnie Harris, Director of Finance
Finance
Budgeted Item: Yes No N/A

RECOMMENDED ACTION
Adopt Resolution No. 2022-27 of the Town Council of the Town of Apple Valley, California, establishing the Fiscal Year 2022-2023 Appropriations Limit for the Town at $47,944,206 by using the Town’s population growth for the population adjustment and the California per capita income growth for the inflationary adjustment.

SUMMARY
Since the addition of Article XIII-B to the Constitution of California in November 1979, the Town has been required to annually establish an Appropriations Limit. The ideology behind establishing an annual appropriation limit is that if an agency’s ability to spend tax proceeds each year is controlled, then the growth in tax revenues can be systematically and incrementally managed to lessen the impact or tax burden upon taxpayers throughout the State.

In June 1990, Article XIII-B and its implementing legislation Chapter 1205/80 were modified by Proposition 111 and SB 88. The modifications changed the annual adjustment factors for determining the Appropriations Limit. Beginning with the calculation of the Appropriations Limit for Fiscal Year 1990-1991, the Town may choose one of the following factors to use for inflationary adjustment:
• The growth in California per capita income; or
• The growth in the non-residential assessed valuation due to new construction within the Town.

In addition, the Town may choose to use either the population growth of the Town or the population growth within the County. These two adjustment factors, one for inflation and one for population, are both annual elections for the Town in determining its Appropriations Limit.

BACKGROUND
The methodology used to determine the Town’s Appropriations Limit is to multiply the inflation and population adjustment factors by the prior year’s Appropriations Limit. For Fiscal Year 2022-2023, the inflation and population figures provided by the State Department of Finance are as follows:

California Per Capita Income Percentage Change 7.55%
Town of Apple Valley’s Population Growth - .70%
Since the growth in non-residential assessed valuation due to new construction is not available at this time, the growth in California Per Capita Income must be used as the inflationary factor. The Town’s Appropriations Limit for Fiscal Year 2022-2023 is calculated at $47,944,206. This amount is the result of applying the 7.55% California per capita personal income factor and the -.70% Town of Apple Valley population growth factor to the Fiscal Year 2021-2022 adopted Appropriations Limit of $44,895,783.

The total estimated revenues generated from general tax proceeds for Fiscal Year 2022- 2023 is $25,252,734. This estimate is $22,691,472 or 52.67% below the proposed Appropriations Limit for Fiscal Year 2022-2023.

FISCAL IMPACT
The Town’s total estimated revenue from general tax proceeds is $25,252,734 or 52.67% below the proposed Fiscal Year 2022-2023 Appropriations Limit. Therefore, the Town is well within its Appropriations Limit established pursuant to Section 7910 of the Government Code of the State of California and will not exceed this limit during Fiscal Year 2022-2023.

ATTACHMENTS
A. Resolution No. 2022-27

RESOLUTION NO. 2022-27

A RESOLUTION OF THE TOWN COUNCIL OF THE

TOWN OF APPLE VALLEY, CALIFORNIA,
ESTABLISHING THE FISCAL YEAR 2022-2023

APPROPRIATION LIMIT FOR THE TOWN OF

APPLE VALLEY
WHEREAS, Article XIIIB of the California Constitution and Section 7910 of the California Government Code require that each year the Town of Apple Valley shall, by resolution, establish an appropriations limit for the Town for the following fiscal year; and WHEREAS, the Director of Finance of the Town has heretofore prepared and submitted data and documentation required for and to be used in the determination of an appropriations limit for the Town for Fiscal Year 2022-2023 and such data and documentation has been available to the public for at least fifteen (15) days prior to adoption of this Resolution; and
WHEREAS, the Town of Apple Valley established its Fiscal Year 2021-2022 Appropriation Limit of $44,895,783 (Forty-Four Million, Eight Hundred Ninety-Five Thousand, Seven Hundred Eighty-Three Dollars); and
WHEREAS, to the best of the Town's knowledge and belief the State Department of Finance figures reflect the following statistics relevant to the calculation of the Fiscal Year 2022-2023 Appropriation Limit:

Per Capita Personal Income Change for Fiscal Year 2022-2023: 7.55% Population Adjustment - January 1, 2022: -.70%

NOW, THEREFORE, IT IS HEREBY RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF APPLE VALLEY AS FOLLOWS:

Section 1. Based on the foregoing figures and the provisions of Article XIIIB of the Constitution of the State of California, the following figure accurately represents the Fiscal Year 2022-2023 Appropriation Limit of the Town of Apple Valley to be $47,944,206 (and said sum is hereby determined and established as the appropriation limit for the Town of Apple Valley for Fiscal Year 2022-2023).

Section 2. The Town Clerk shall certify to the passage of the Resolution.

Resolution 2022-27
APPROVED and ADOPTED by the Town Council of the Town of Apple Valley this 28th day of June 2022.

ATTEST: Kari Leon, Mayor
__________________________
La Vonda M-Pearson, Town Clerk

Town Council Agenda Report
Date: June 28, 2022
To: Honorable Mayor and Town Council
Subject: A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF APPLE

VALLEY, CALIFORNIA, APPROVING BUDGET APPROPRIATIONS

AND ADOPTING THE OPERATING AND CAPITAL IMPROVEMENT
BUDGET FOR ALL FUNDS FOR FISCAL YEAR 2022-2023

From: Douglas Robertson, Town Manager
Submitted by: Sydnie Harris, Director of Finance
Finance
Budgeted Item: Yes No N/A

RECOMMENDED ACTION
Adopt Resolution No. 2022-26 of the Town Council of the Town of Apple Valley, California, approving a budget appropriation and adopting the budget, including the operating and capital improvement budget for all funds for Fiscal Year 2022-2023.

SUMMARY:

On June 14, 2022, the Town Council held a Budget Workshop and reviewed the General Fund’s Proposed Operating and Capital Improvement Budget for Fiscal Year 2022-2023. At this meeting, Council determined that, post the national pandemic and the subsequent inflationary factors occurring in the economy, the Town should further develop reserve tactics to ensure fiscal stability in our financial projections.

The attached budget adoption resolution includes all revenue estimates, fund, and departmental appropriations included in the Fiscal Year 2022-2023 Proposed Budget discussed and presented to Council at the June 14, 2022 Budget Workshop. This resolution also includes changes incurred after the budget workshop due to additional scrutiny of budget requests and adjustments proposed by staff.

Adoption of the attached Resolution No. 2022-26 will approve the Fiscal Year 2022- 2023 Operating and Capital Improvement Budget for all funds with budgetary activity.

BACKGROUND
The proposed budget represents the Town Manager’s recommended financial plan for Fiscal Year 2022-2023 to address Council’s spending priorities within current fiscal constraints to fulfill the service expectations of the community. The gap between service expectations and fiscal reality has gradually widened over the last ten (10) years. New programs and services have been added over the last ten (10) years with no significant sources of new resources identified to provide for the new funding requirements. These conditions coupled with normal inflationary increases and the lingering impacts of the past recessionary cycle, and the economic impact of the most recent national pandemic have placed increased pressure upon existing resources and eliminated budgetary flexibility that had existed previously. The focus in this year’s budget process was on scaling expectations and services to a level that is supportable within existing fiscal constraints.

As submitted, the proposed budget on an all funds basis is summarized in the following table:

TABLE 1
ADOPTED BUDGET – ALL FUNDS
Appropriations/ Proposed Adopted Increase (Decrease)
ALL FUNDS FY 22-23 FY 21-22 Amount Percent
Operating
Budget $82,746,479 $79,415,415 $3,331,064 4.19%
Transfers Out 4,054,900 4,204,900 (150,000) (3.57%)
Capital Budget 16,357,080 16,191,961 165,119 1.02%
Total $103,158,459 $99,812,276 $3,346,183 3.35%
The total Fiscal Year 2022-2023 proposed appropriations are $103,158,459 on an all funds basis. The proposed Operating Budget on an all funds basis increased from $79,415,415 in Fiscal Year 2021-2022 to $82,746,479 in Fiscal Year 2022-2023, an increase of $3,331,064 or 4.19%. The increase in the proposed Operating Budget is primarily due to the inflationary factors impacting the cost of living and operating costs to the Town. The proposed Capital Improvement Budget is proposed to increase slightly, from $16,191,961 in Fiscal Year 2021-2022 to $16,357,080 in Fiscal Year 2022-2023, an increase of $165,119 or 1.02%. The increase in the proposed budget for the Capital Improvement Program is primarily the result of the same economic inflationary factors impacting the costs of supplies and labor.

The total proposed General Fund budget is $39,795,973, an increase of $2,689,624 as compared to the adopted budget in Fiscal Year 2021-2022. This increase is mainly due to two factors, a cost of living adjustment made in an attempt to stablize employee income with that of the current inflationary market, and an increase in operating costs as supplies and contract costs are dramatically increased from the previous year. As presented, the proposed General Fund budget for Fiscal Year 2022-2023 is balanced with the expected surplus revenues of $4,525,777 this fiscal year. The following table is a summary of the total resources and requirements for the proposed Fiscal Year 2022-2023 General Fund budget:

TABLE 2
General Fund Summary
Estimated Revenues $40,736,850
Transfers In 3,584,900
Approp. to Fund Balance $0
Total Resources 44,321,750
Proposed Budget 39,795,973
Balance $4,525,777
The Fiscal Year 2022-2023 proposed budget represents improvements in the format budget balancing methods from the prior budget submissions to the Town Council. Staff has continued to improve the transparency and understandability of the budget document.

These improvements to the budget format are intended to increase the transparency of the budget process and provide a clear picture of the Town’s spending plan for the next fiscal year. The proposed budget document conforms with the award program requirements for the Government Finance Officers Association’s (GFOA) Distinguished Budget Presentation Award.

FISCAL REVIEW
Adoption of the attached resolution will adopt the revenue and appropriation estimates with sufficient funding in the amount of $103,158,459 to fund anticipated expenditures in all budgetary funds for Fiscal Year 2022-2023.

LEGAL REVIEW
The attached resolution has been reviewed and approved as to form.

CONCLUSION
Adoption of the attached Resolution No. 2022-26 will approve the Operating and Capital Improvement budget for all budgetary funds for Fiscal Year 2022-2023.

ATTACHMENT:

A. Resolution No. 2022-26
B. Proposed Budget avialible for review in the Town Clerks office and online at www.applevalley.org

RESOLUTION NO. 2022-26

A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN

OF APPLE VALLEY, CALIFORNIA APPROVING A

BUDGET APPROPRIATION AND ADOPTING THE

BUDGET, INCLUDING THE OPERATING AND CAPITAL
IMPROVEMENT BUDGET FOR FISCAL YEAR 2022-23
WHEREAS, the Town has been notified of funding for Capital Projects by the State and by San Bernardino Council of Governments, the following represents current funding levels and adjustments as necessary, and WHEREAS, the Town Manager have heretofore submitted to the Town Council a proposed budget for the Town for Fiscal Year 2022-23, as the same may have been revised by the Town Council, a copy of which is attached, and copies of which are in the possession of and in the office of the Town Clerk and the Director of Finance; and WHEREAS, the said proposed budget contains estimates of the services, activities and projects comprising the budget, and contains expenditure requirements and the resources available to the Town; and
WHEREAS, the appropriations limit for the Town for Fiscal Year 2022-23 is $47,944,206 (Forty-Seven Million Nine Hundred Forty-Four Thousand Two Hundred Six Dollars), and the total annual tax revenues subject to such limitation for Fiscal Year 2022- 23 are estimated to be $25,252,734; and
WHEREAS, the Town Council has made such revisions to the proposed budget as appears to be desirable; and
WHEREAS, the proposed budget, as herein approved, will enable the Town Council to make adequate financial plans and will ensure that Town officers can administer their respective functions in accordance with such plans,

NOW THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF
THE TOWN OF APPLE VALLEY AS FOLLOWS:

SECTION 1: That the appropriation-expenditure budgeting system is hereby adopted. The system consists of:

A. Present Personnel Policies and Procedures, including salary schedules and benefits, except as hereinafter changed by resolution or ordinance of the Town Council.

B. An appropriation-expenditure system which will show budgetary categories by department.

C. The system mentioned above will apply to Operating and Capital Improvement Budget expenditures as intended for use in Fiscal Year 2022-23.

D. The Town Manager is authorized to transfer Operating Budget Appropriation Balances between functions and/or programs when he deems it necessary to do so.

E. Budget system assumes existing service levels; Council approval will be required for any significant changes involving increased or decreased service levels.

F. The Director of Finance shall be responsible for constant monitoring of the budget and shall establish and implement appropriate control mechanisms necessary for said purpose, after approval of the Town Manager.

G. A monthly report shall be prepared by each department and/or project indicating any changes in service levels and the progress each entity has achieved or failed to achieve and the reasons for said status, if they have not obtained results. Each manager shall be accountable for achieving results of his/her organization unit based upon the objectives set for each unit by the Town Manager and Town Council and shall be evaluated as to their performance in an annual performance appraisal conducted by the Town Manager.

H. A deflator procedure, to be administered by the Town Manager, is hereby established for reducing appropriations in the event that projected revenues are reduced due to a reduction in the State subventions or other revenues that may fluctuate downward due to changes in economic conditions. For Fiscal Year 2022-23, the amount of Total Operating and Capital Budget Appropriation shall be reduced, as determined by the Town Manager based on his assessment of total Town needs.

I. A monthly status report will be available up request for the Town Council reflecting budget, year-to- date expenditures, and percentage used by each department and fund of the Town.

SECTION 2: The proposed budget for the Town of Apple Valley for the Fiscal Year 2022-23 is hereby approved and adopted, and the amounts of proposed expenditures as specified are appropriated for the budget programs and units as herein specified.

A. The 2022-23 Operating and Capital Improvement Budget programs are hereby adopted, establishing the following expenditure levels:

DEPARTMENT 2022-23 PROPOSED BUDGET

1. TOWN COUNCIL 269,109

2. TOWN ATTORNEY 670,000

3. TOWN MANAGER 648,102

4. FINANCE 1,214,500

5. TOWN CLERK 759,697

6. PUBLIC INFORMATION 403,759

7. HUMAN RESOURCES 291,106

8. INFORMATION SYSTEMS 1,953,181

9. GENERAL GOVERNMENT 3,948,180

10. PUBLIC FACILITIES 1,670,035

11. PUBLIC SAFETY POLICE 17,999,736

12. EMERGENCY PREPAREDNESS 28,300

13. ANIMAL CONTROL SERVICES 2,500,734

14. CODE ENFORCEMENT 483,363

15. BUILDING & SAFETY 729,824

16. ENGINEERING SERVICES 791,635

17. PLANNING SERVICES 812,685

18. ECONOMIC DEVELOPMENT 232,036

19. PARKS & RECREATION 4,389,992

20. STREET MAINT FUND (GAS TAX) 1,970,765

21. SB1 ROAD MAINT REHAB 1,694,783

22. ARTICLE 3 361,818

23. LOCAL TRANSPORTATION 132,000

24. MEASURE I 3,482,462

25. CDBG 1,592,977

26. APPLE VALLEY HOME 2,344,945

27. VICTORVILLE HOME 2,347,066

28. HOME ARP 2,913,966

29. PEG CHANNEL FUND 108,500

30. MSHCP/NCCP 150,000

31. QUIMBY 145,340

32. ASSESSMENT DISTRICT LL 410,000

33. PBID 634,091

34. CAPITAL IMPROVEMENT TIF FUND 1,122,270

35. ANIMAL CONTROL FACILITIES 13,106

36. LAW ENFORCEMENT FACILITIES 30,000

37. PROJECT MANAGER GRANTS 11,000

38. WASTEWATER FUND 10,705,271

39. WASTE MANAGEMENT FUND 14,134,662

40. APPLE VALLEY GOLF COURSE 1,372,279

41. APPLE VALLEY CHOICE ENERGY 17,685,186
TOTAL OPERATING & CAPITAL EXPENDITURES $103,158,459
B. The Operating and Capital Budget Revenues are hereby adopted establishing a revenue base by which the Town expenditures will be measured:

1. GENERAL FUND 44,791,750

2. STREET MAINT FUND (GAS TAX) 2,054,435

3. SB1 ROAD MAINT REHAB 1,646,416

4. ARTICLE 3 361,818

5. LOCAL TRANSPORTATION 79,000

6. MEASURE I 3,235,695

7. CDBG 597,858

8. NSP 3 311,000

9. APPLE VALLEY HOME 867,741

10. CAL HOME 80,000

11. HOME ARP 2,913,966

12. PEG CHANNEL FUND 130,000

13. MSHCP/NCCP 150,000

14. QUIMBY 300,000

15. ASSESSMENT DISTRICT LL 295,000

17. PBID 224,000

18. CAPITAL IMPROVEMENT TIF FUND 525,000

19. ANIMAL CONTROL FACILITIES 6,000

20. LAW ENFORCEMENT FACILITIES 15,500

21. GENERAL GOVERNMENT FACILITIES 32,500

22. PUBLIC MEETING FACILITIES 21,500

23. AQUATIC FACILITIES 6,500

24. STORM DRAINS 115,000

26. SANITARY SEWER FACILITES 90,000

27. WASTEWATER FUND 6,553,000

28. WASTE MANAGEMENT FUND 12,004,000

29. APPLE VALLEY GOLF COURSE 1,390,000

30. APPLE VALLEY CHOICE ENERGY 17,651,000
TOTAL OPERATION & CAPITAL REVENUES $96,448,679
SECTION 3: Pursuant to Section 53901 of the California Government Code, within 60 days after the adoption hereof, the Town Clerk shall file a copy of this resolution with the Auditor of the County of San Bernardino.

SECTION 4: Within fifteen days after the adoption of this resolution, the Town Clerk shall certify to the adoption hereof and, as so certified, cause a copy to be posted in at least three public places within the boundaries of the Town.

APPROVED and ADOPTED by the Town Council of the Town of Apple Valley this 28nd day of June, 2022.

Kari Leon, Mayor
ATTEST:

La Vonda M. Pearson, Town Clerk

Ordinance No. 557
Town Council Agenda Report
Date: June 28, 2022
To: Honorable Mayor and Town Council
Subject: INTRODUCE ORDINANCE NO. 557 – AN ORDINANCE OF THE

TOWN COUNCIL OF THE TOWN OF APPLE VALLEY, CALIFORNIA,

AMENDING THE TOWN OF APPLE VALLEY MUNICIPAL CODE
TITLE 11, BY ADDING CHAPTER 11.120, SECTION 11.120.010
“UNLAWFUL POSSESSION OF CATALYTIC CONVERTERS” AND
AMENDING SECTION 5.02.360 – DAILY REPORTS AND PURCHASE
FORMS; AND FINDING THE ACTION EXEMPT FROM THE

CALIFORNIA ENVIRONMENTAL QUALITY ACT
From: Douglas Robertson, Town Manager
Submitted by: Guy Eisenbrey, Interim Director of Public Works Code Enforcement
Budgeted Item: Yes No N/A

RECOMMENDED ACTION
A. Find that the proposed adoption of Ordinance No. 557 is not subject to and is exempt from CEQA based upon a finding that, under section 15061(b)(3) of the CEQA Guidelines, it can be seen with certainty that there is no possibility that the proposed amendment may have a significant effect on the environment.

B. Move to waive the reading of Ordinance No. 557 in its entirety and read by title only.

C. Move to introduce Ordinance No. 557 amending Title 11 of the Town of Apple Valley Municipal CoDe and adding Chapter 11.120 "Unlawful Possession of Catalytic Converters" and amending section 5.02.360 “Daily Reports and Purchase Forms,” establishing regulations prohibiting the unlawful possession of catalytic converters in the Town.

D. Direct staff to file a Notice of Exemption.

SUMMARY
Cities across the nation have experienced an increase in catalytic converter thefts due to the ease of obtaining and selling them for scrap. Catalytic converter thieves move across jurisdictional lines and in many cases are committing other crimes such as auto theft.

Ordinance No. 557
Catalytic converter theft is challenging for law enforcement because they lack serial numbers or other identifying information that can positively identify the item as stolen.

There is currently no Town ordinance or State or Federal legislation applicable to define and punish the possession, recycling, or sale of unlawfully obtained catalytic converters.

This ordinance was drafted pursuant to Town Council direction at prior meetings and is proposed as a means of assisting law enforcement and reducing the negative fiscal and human resource impacts resulting from catalytic converter theft investigations. It is an enforcement tool, establishing sanctions for possessing stolen catalytic converters and attempts to prevent offenders and recycling centers from profiting from the sale of unlawfully obtained catalytic converters, provide indirect justice to the victims of catalytic converter theft, and ultimately safeguard the residents of the Town from such illegal and costly activities.

BACKGROUND
The theft of catalytic converters has increased significantly in cities across California and the nation. Catalytic converter theft is popular because of the value of precious metals contained within the catalytic converter, the ease of removing the catalytic converter from a vehicle, and the ease of selling the item to a scrap metal dealer for cash. Catalytic converters do not have serial numbers so if an individual is in possession of a catalytic converter and stopped by law enforcement, it is very difficult for the officer or deputy to take enforcement action and prove the item is stolen. The Town of Apple Valley Police Department has investigated ninety one (91) catalytic converter theft reports since August 2020 and made only four (4) arrests.

The ordinance seeks to address the rise in catalytic converter theft investigations and the apparent lack of enforceable mechanisms and sanctions. None of the proposed changes intends to alter the Town Council’s overarching intent of the Code itself.

FISCAL IMPACT
None.

ATTACHMENTS
Ordinance No.557

Ordinance No. 557
ORDINANCE NO. 557

AN ORDINANCE OF THE TOWN COUNCIL OF THE TOWN

OF APPLE VALLEY, CALIFORNIA, AMENDING THE
TOWN OF APPLE VALLEY MUNICIPAL CODE TITLE 11,
BY ADDING CHAPTER 11.120, SECTION 11.120.010 –

UNLAWFUL POSSESSION OF CATALYTIC
CONVERTERS AND AMENDING SECTION 5.02.360 –
DAILY REPORTS AND PURCHASE FORMS; AND

FINDING THE ACTION EXEMPT FROM THE CALIFORNIA

ENVIRONMENTAL QUALITY ACT
WHEREAS, the theft of catalytic converters has been an increasing problem in the Town of Apple Valley in recent years; and
WHEREAS, catalytic converters contain expensive precious metals including platinum, palladium, and rhodium, which currently costs over $11,000 per ounce; and WHEREAS, in the Town of Apple Valley, there were 91 reports of catalytic converter thefts from August 2020 to May 2022; and
WHEREAS, the average cost of replacing a stolen catalytic converter and repairing the damage to the vehicle is generally over $2,000 to the victim; and WHEREAS, individuals in possession of stolen catalytic converters often recycle them for substantial profit while victims of these thefts suffer the consequences of paying thousands of dollars in repairs, the inconvenience of repairing their vehicles, and feeling unsafe in the community; and
WHEREAS, catalytic converter thefts are on the rise because individuals are incentivized to commit catalytic converter thefts for multiple reasons including, but not limited to: (1) the ease and undetectable nature of committing the thefts in a matter of seconds using common tools such as a reciprocating saw, (2) the ability to recycle catalytic converters at scrap metal yards for high dollar returns, and (3) the challenges with prosecuting criminals for catalytic converter theft where a victim cannot be identified; and
WHEREAS, finding the victim of these crimes is nearly impossible due to manner in which the catalytic converter thefts occur and lack of identifying markers on catalytic converters to link a stolen catalytic converter to the victim; and WHEREAS, the inability to identify the victims of catalytic converter thefts has stymied the ability to successfully prosecute individuals for the thefts; and WHEREAS, there is currently no town, state, or federal legislation applicable within the Town of Apple Valley requiring individuals to provide proof to law enforcement showing how they obtained detached catalytic converters, thus limiting law enforcement’s ability to protect the public by deterring catalytic converter thefts; and

Ordinance No. 557
WHEREAS, this Ordinance is necessary to provide the Town of Apple Valley Police Department a means to protect the public, deter this criminal activity and promote a more productive use of Town of Apple Valley resources by staff responsible for investigating catalytic converter thefts.

NOW, THEREFORE, THE TOWN COUNCIL OF THE TOWN OF APPLE
VALLEY DOES ORDAIN AS FOLLOWS:

SECTION 1. Incorporation of Recitals. The above recitals are true and correct and are incorporated herein by this reference.

SECTION 2. A new Section 11.120.010 is hereby added to Chapter 11.120 of Title 11 of the Town of Apple Valley Municipal Code to read, in its entirety, as follows:
“11.120.010 Unlawful possession of a catalytic converter. (a) It is unlawful for any person, other than a Core Recycler as defined in California Business and Professions Code Section 21610, to possess any catalytic converter that is not attached to a vehicle unless the person has valid proof of ownership of the catalytic converter.
(b) This section does not apply to a detached catalytic converter that has been tested, certified, and labeled or otherwise approved for reuse, and being bought or sold for purposes of reuse in accordance with the federal Clean Air Act (42 U.S.C. §§ 7401 et seq.) and regulations under the Clean Air Act, as they may, from time to time, be amended.
(c) For purposes of this section, “valid proof of ownership” shall contain all the following information:

1. The license plate number and vehicle identification number of the vehicle from which the catalytic converter was removed.

2. The name, address, and telephone number of the owner of the vehicle from which the catalytic converter was removed.

3. The signature of the vehicle owner authorizing removal of the catalytic converter.

4. The name, address, and telephone number of the current owner of the catalytic converter.
(d) It is unlawful for any person to knowingly falsify or cause to be falsified any information in a record intended to show valid proof of ownership. (e) Each violation of this section constitutes a separate violation and is subject to all remedies and enforcement measures authorized by the Town of Apple Valley Municipal Code.
(f) Any person who violates any provision of this section shall be guilty of a misdemeanor punishable by a fine not to exceed $1,000, imprisonment in the county jail for a term not exceeding six months, or both.” SECTION 3. Section 5.02.360 of Chapter 5.02 of Title 5 of the Town of Apple Valley Municipal Code is hereby amended to read, in its entirety, as follows (A strikethrough in the municipal code text shows proposed deletions and bold with

Ordinance No. 557
italicized text shows proposed additions to the code sections):
“5.02.360 - Daily reports and purchase forms.
(a) Junk dealers, pawnbrokers and secondhand dealers licensed under this Chapter shall report in writing to the Police Department, in a manner as approved by the Police Department, all personal property requiring reporting by this Chapter. The daily reports shall be accompanied by a purchase form for each individual transaction. The specific information required on the purchase form is as follows;

1. Dealer's name, business, address and telephone number;

2. Date of purchase;

3. Seller's name, description, residence address, vehicle license number, driver's license or county business license number;

4. Material category descriptions;

5. Weight of material, amount paid and time of payment;

6. Description and identification number of automobile and automobile bodies. Such information may be provided by submission of a vehicle report completed by the seller of any automobile or automobile body. The vehicle report forms will be made available by the Police Department. (b) The purchase forms and daily reports shall include a general description as to the composition of scrap or junk. Products such as castings, wire, tubing, pipe, or similar items may be commonly described. Nonferrous materials shall be reported and ferrous materials including fence material, pipe, chain, machinery parts, foundry castings, cable, automobiles, and automobile bodies, and catalytic converters shall be reported.

1. A copy of valid proof of ownership shall accompany all purchase forms for each catalytic converter transaction in accordance with Section 11.120.010(c) of this Municipal Code.
(c) Transactions totaling $5.00 or less need not be reported except for automobiles or automobile bodies, which may be reported in accordance with Subsection (a)(6). of this Section.
(d) Pawnbrokers and secondhand dealers shall make their reports in compliance with the provisions of Business and Professions Code § 21628 and Financial Code § 21208, of the State of California.
(e) Salvage collectors shall maintain purchase records. (f) The daily reports and purchase forms shall be written in the English language in a clear and legible manner. The records required by this Section shall be retained by the applicant for a period of three years and shall be available for inspection upon demand by any Law Enforcement Officer. The failure to complete, file and retain the records required pursuant to Section 5.02.360 is a violation of this Chapter and is unlawful.”
SECTION 4. CEQA. The Ordinance is not subject to the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) of the State Guidelines to Implement

Ordinance No. 557
CEQA, which states that the activity is covered by the general rule that CEQA applies only to projects that have the potential for causing a significant effect on the environment.

Where it can be seen with certainty that there is no possibility that the activity in question, the proposed Code Amendment, may have a significant effect of the environment, the activity is not subject to CEQA.

SECTION 5. Severability. If any section, sentence, clause or phrase of this Ordinance or the application thereof to any entity, person or circumstance is held for any reason to be invalid or unconstitutional, such invalidity or unconstitutionality shall not affect other provisions or applications of this Ordinance which can be given effect without the invalid provision or application, and to this end the provisions of this Ordinance are severable. The Town Council of the Town of Apple Valley hereby declares that it would have adopted this Ordinance and each section, sentence, clause or phrase thereof, irrespective of the fact that any one or more section, subsections, sentences, clauses or phrases be declared invalid or unconstitutional.

SECTION 6. Effective Date. This Ordinance shall become effective thirty (30) days after the date of its adoption.

SECTION 7. Notice of Adoption. The Town Clerk of the Town of Apple Valley shall certify to the adoption of this ordinance and cause publication to occur in a newspaper of general circulation and published and circulated in the Town in a manner permitted under section 36933 of the Government Code of the State of California.

Ordinance No. 557
APPROVED AND ADOPTED by the Town Council of the Town of Apple Valley, California, at a regular meeting held on the 12
th day of July 2022 by the following vote:
__________________________
Kari Leon, Mayor
Attest:
__________________________
La Vonda M-Pearson, Town Clerk
Approved as to form: Approved as to content:
__________________________ __________________________
Thomas A. Rice, Town Attorney Douglas B. Robertson, Town Manager

Town Council Agenda Report
Date: June 28, 2022
To: Honorable Mayor and Town Council
Subject: REQUEST TO ALLOW OVERHEAD POWER LINES, SNIPE

EQUIPMENT, LLC
From: Douglas Robertson, Town Manager
Submitted by: Brad Miller, Town Engineer
Engineering
Budgeted Item: Yes No N/A

RECOMMENDED ACTION
Provide Staff with direction regarding a request to allow overhead utility poles and lines to remain in vicinity of the proposed Snipe Equipment, LLC Facility located at 17077 Navajo Road, Apple Valley.

BACKGROUND
Pursuant to the Town’s Municipal Code, Chapter 14.28, “underground installation is required for all electrical lines energized at 34,500 volts or less, telephone, cable, antenna television and similar service wires or cables which:
(a) Provide direct service to the property being developed; or (b) Are existing and located within the boundaries being developed; or (c) Are existing between the property line and the centerline of the peripheral streets of the property being developed…”
The Code also indicates in Section 14.38.060: “The Council may grant special permission, on such terms as the Council may deem appropriate, in cases of unusual circumstances, without discrimination as to any person or utility, to erect, construct, install, maintain, use or operate poles, overhead wires and associated overhead structures.”

ANALYSIS
On June 6, 2022, the Town received a request from Mr. Jared Himle, Managing Owner of Snipe Equipment LLC, (see attached letter), to allow three poles that support overhead power lines along the subject property frontage on Navajo Road, to remain in service.

There are two existing poles that are located within the property frontage, and one pole that is approximately five feet north of the north property line. The subject power poles are visible in Photo A, Photo B, and Photo C, and shown on the attached project site plan.

The existing pole that is most centrally located along the property frontage also feeds overhead to an existing power pole on the west side of Navajo Road. This pole then provides a direct overhead power feed to an existing structure on the west side of Navajo Road.

Per the attached letter, Mr. Himle is requesting that the Council find that the undergrounding of the existing overhead service and transmission lines along Navajo Road pose an unusual circumstance because, “The costs to underground the SCE power being more than the cost of the entire project.” The entry and address frontage of the property faces Navajo Road, and all connections for power to the new facility will be made underground from Navajo Road.

If the request is approved, Town staff intend to require compliance with Section 14.28.040 of the Municipal Code which requires a property owner receiving an exception to sign “an agreement agreeing not to protest the formation of a municipal underground utility district and further agreeing to prepare said property to accept underground utility lines in accordance with the applicable rules of the utility involved. Said agreement shall be recorded as an encumbrance against the land.”
The applicant, Mr. Himle, is requesting that the existing poles along the property’s Navajo Road frontage be excluded from the undergrounding requirement due to cost and distance to the next available pole. Chapters 14.28 and 14.38 of the Apple Valley Municipal Code do not permit staff to exempt a project based on cost or distance.

However, Section 14.38.060- (Emergency or Unusual Circumstances), does enable Town Council to grant special permission “on such terms as the Council may deem appropriate”. The applicant is requesting Town Council consider cost and distance to constitute an “unusual circumstance”.

FISCAL IMPACT
There is no financial impact to Town.

ATTACHMENTS
A. Letter dated June 6, 2022 from Mr. Jared Himle, Managing Owner of Snipe Equipment LLC.

B. Project location Photos A, B, and C, (Power Pole Exhibit).

C. Letter dated October 19, 2021 from Town of Apple Valley Community Development.

D. Site Plan of 17077 Navajo Road, Apple Valley CA, entitled WEKA, Inc.Material Yard.

Town Council Agenda Report
Date: June 28, 2022
To: Honorable Mayor and Town Council
Subject: CLOSED SESSION

From: Douglas Robertson, Town Manager
Submitted by: Thomas Rice, Town Attorney
Town Attorney
Budgeted Item: Yes No N/A
CONFERENCE WITH REAL PROPERTY NEGOTIATORS (Per Government Code section 54956.8):

Property: APNs 0399-261-01 & 0399-261-08 (vacant land south of Bear Valley Road and Bridge)
Agency Negotiator: town Manager or Designee
Negotiating Parties: Jess Ranch Development Company, Inc.

Under Negotiation: Price and Terms of Payment for Easement Rights CONFERENCE WITH REAL PROPERTY NEGOTIATORS (Per Government Code section 54956.8):

Property: APN 0444-411-13 (18870 Outer Bear Valley Rd)
Agency Negotiator: Town Manager or Designee
Negotiating Parties: Trevor D. Lyons and Ramona M. Lyons, husband and wife and Holly Marie Manson, a Single Woman, all as Joint Tenants Under Negotiation: Price and Terms of Payment for Easement Rights CONFERENCE WITH REAL PROPERTY NEGOTIATORS (Per Government Code section 54956.8):

Property: APN 0444-121-18 (vacant land north of Bear Valley Road at the NW corner of the Bridge)
Agency Negotiator: Town Manager or Designee
Negotiating Parties: San Bernardino County Flood Control District Under Negotiation: Price and Terms of Payment for Easement Rights

CONFERENCE WITH REAL PROPERTY NEGOTIATORS (Per Government Code section 54956.8):

Property: APN 0482-022-06 (vacant land north of Bear Valley Road at the NE corner of the Bridge)
Agency Negotiator: Town Manager or Designee
Negotiating Parties: Victorville Valley Community College District Under Negotiation: Price and Terms of Payment for Easement Rights