Escondido City Council
May 11, 2022

CITY of ESCONDIDO

Council Meeting Agenda
WEDNESDAY, MAY 11, 2022
4:00 PM - Closed Session - Cancelled
5:00 PM - Regular Session
Escondido City Council Chambers, 201 North Broadway, Escondido, CA 92025

WELCOME TO YOUR CITY COUNCIL MEETING
We welcome your interest and involvement in the legislative process of Escondido. This agenda includes information about topics coming before the City Council and the action recommended by City staff.

MAYOR
Paul McNamara

DEPUTY MAYOR
Tina Inscoe (District 2)

COUNCILMEMBERS
Consuelo Martinez (District 1)
Joe Garcia (District 3)
Michael Morasco (Disctrict 4)

CITY MANAGER
Sean McGlynn

CITY ATTORNEY
Michael McGuinness

CITY CLERK
Zack Beck

HOW TO WATCH
The City of Escondido provides three ways to watch a City Council meeting:

In Person On TV Online

201 N. Broadway Cox Cable Channel 19 and U-verse Channel 99 www.escondido.org

1 Wednesday, May 11, 2022

HOW TO PARTICIPATE
The City of Escondido provides two ways to communicate with the City Council during a meeting:

In Person In Writing

Fill out Speaker Slip and Submit to City Clerk https://escondido-ca.municodemeetings.com

ASSISTANCE PROVIDED
If you need special assistance to participate in this meeting, please contact our ADA Coordinator at 760-839-4869.

Notification 48 hours prior to the meeting will enable to city to make reasonable arrangements to ensure accessibility. Listening devices are available for the hearing impaired – please see the City Clerk.

2 Wednesday, May 11, 2022

REGULAR SESSION

ESCONDIDO JOINT POWERS AUTHORITY
5:00 PM Regular Session

MOMENT OF REFLECTION
City Council agendas allow an opportunity for a moment of silence and reflection at the beginning of the evening meeting. The City does not participate in the selection of speakers for this portion of the agenda, and does not endorse or sanction any remar ks made by individuals during this time. If you wish to be recognized during this portion of the agenda, please notify the City Clerk in advance.

FLAG SALUTE
The City Council conducts the Pledge of Allegiance at the beginning of every City Council meeting.

CALL TO ORDER
Roll Call: Garcia, Inscoe, Martinez, Morasco, McNamara

PROCLAMATIONS
National Public Works Week, May 15-21, 2022
National Historic Preservation Month, May 2022
Water Awareness Month, May 2022

ORAL COMMUNICATIONS
In addition to speaking during particular agenda items, the public may address the Council on any item which is not on the agenda provided the item is within the subject matter jurisdiction of the City Council. State law prohibits the Council from discussing or taking action on such items, but the matter may be referred to the City Manager/staff or scheduled on a subsequent agenda. Speakers are limited to only one opportunity to address the Council under Oral Communications.

CONSENT CALENDAR
Items on the Consent Calendar are not discussed individually and are approved in a single motion. However, Council members always have the option to have an item considered separately, either on their own request or at the request of staff or a member of the public.

1. AFFIDAVITS OF PUBLICATION, MAILING, AND POSTING (COUNCIL/RRB) - 3 Wednesday, May 11, 2022

2. APPROVAL OF WARRANT REGISTER (COUNCIL) -
Request approval for City Council and Housing Successor Agency warrant numbers:
362489 – 362710 dated April 13, 2022
362711 – 362712 dated April 14, 2022
362713 – 362848 dated April 20, 2022
362849 – 363045 dated April 27, 2022
Staff Recommendation: Approval (Finance Department: Christina Holmes)

3. APPROVAL OF MINUTES: None scheduled

4. $5,000 LIBRARY INNOVATION LAB GRANT -
Request the City Council adopt Resolution 2022-44 authorizing the Deputy City Manager/Director of Communications & Community Services to accept the $5,000 California Humanities 2022 Library Innovation Lab Program grant and the completion of the associated budget adjustment and documents necessary to receive and spend the funding.

Staff Recommendation: Approval (Communications & Community Services Department: Joanna Axelrod)
Presenter: Dara Bradds
a. Resolution 2022-44

5. BID AWARD FOR THE CITRACADO PARKWAY, ANDREASEN DRIVE TO WEST VALLEY PARKWAY - Request the City Council adopt Resolution No. 2022-56, authorizing the Mayor, on behalf of the City, to execute a public improvement agreement with Flatiron West, Inc. for construction of the Citracado Parkway, Andreasen Drive to West Valley Parkway Project (“Project”) in the amount of $23,792,400.50 to complete street improvements and extension of Citracado Parkway from Andreasen Drive to West Valley Parkway.

Staff Recommendation: Approval (Engineering Services Department: Julie Procopio) Presenter: Julie Procopio
a. Resolution No. 2022-56

4 Wednesday, May 11, 2022

6. EMERGENCY DISPATCH EQUIPMENT PURCHASE -
Request the City Council adopt Resolution No. 2022-49 authorizing the Escondido Police Department to purchase hardware, software, and installation services through approved sole source acquisition from Motorola Solutions, Inc. (“Motorola Solutions”). This purchase will provide a required upgrade to the City of Escondido’s (“City”) emergency dispatch services. The upgrade includes interoperable two-way radio products which will enhance officer and community safety.

Staff Recommendation: Approval (Police Department: Edward Varso) Presenter: Edward Varso
a. Resolution No. 2022-49

7. SCHOOL RESOURCE OFFICER AGREEMENT -
Request the City Council adopt Ordinance No. 2022-08, giving the Chief of Police authority to sign the School Resource Officer (“SRO”) Agreement and other related agreements on behalf of the City. The SRO program allows local schools, the Escondido Police Department, and the community to provide a safe learning environment for students and school staff. The SRO Agreement states that the City will provide one uniformed, regularly appointed, full-time peace officer for the Escondido Union School Districts at a cost of $136,500, which will be reimbursed by the school district.

Staff Recommendation: Approval (Police Department: Edward Varso) Presenter: Edward Varso
a. Ordinance No. 2022-08

8. TREASURER’S INVESTMENT REPORT FOR THE QUARTER ENDED March 31, 2022 - Request the City Council receive and file the Quarterly Investment Report for the quarter ended March 31, 2022.

Staff Recommendation: Receive and File (City Treasurer: Douglas Shultz) Presenter: Douglas Shultz

5 Wednesday, May 11, 2022

9. RENEW SIGNATURE AUTHORIZATIONS FOR INVESTING CITY FUNDS IN THE LOCAL AGENCY

INVESTMENT FUND -
Request the City Council adopt Resolution No. 2022-53, renewing the authorization to invest monies not required for immediate cash flow needs in the Local Agency Investment Fund (“LAIF”) which is administered by the State Treasury in accordance with Section 16429.1 of California Government Code.

Staff Recommendation: Receive and File (City Treasurer: Douglas Shultz) Presenter: Douglas Shultz
a. Resolution 2022-53

10. THE CITY OF ESCONDIDO'S INVESTMENT POLICY -
Request the City Council adopt Resolution No. 2022-54, approving the City of Escondido’s May 2022 Investment Policy.

Staff Recommendation: Receive and File (City Treasurer: Douglas Shultz) Presenter: Douglas Shultz
a. Resolution 2022-54

11. FY2021 URBAN AREA SECURITY INITATIVE (UASI) GRANT PROGRAM AND BUDGET ADJUSTMENT - Request the City Council accept a FY 2021 Urban Area Security Initiative (“UASI”) Grant Award in the amount of $31,000; request the City Council accept a FY 2020 UASI Grant Amendment in the amount of $57,140; authorize the Fire Chief or his designee to execute grant documents on behalf of the City of Escondido (“City”); and approve the budget adjustment needed to spend grant funds (see Attachment “1”).

Staff Recommendation: Approval (Fire Department: Rick Vogt) Presenter: Art Holcomb

12. GRAND VISION PROJECT PHASE I; - REQUEST THE CITY COUNCIL AUTHORIZE CHANGE ORDERS FOR THE GRAND VISION PROJECT PHASE 1 -
Request the City Council adopt Resolution No. 2022-57 to authorize change orders for the Grand Vision Project Phase I (Project).

Staff Recommendation: Approval (Engineering Services Department: Julie Procopio) Presenter: Jonathan Schauble
a. Resolution No. 2022-57
6 Wednesday, May 11, 2022

13. APPROVAL OF FUNDS FOR LAKE HENSHAW ALGAE MITIGATION ACTIVITIES - Request the City Council adopt Resolution 2022-55, agreeing to equally share the cost of managing, mitigating, and treating harmful algal blooms in Lake Henshaw. The cost of algae mitigation shall be split equally between the City of Escondido (“City”) and the Vista Irrigation District (“VID”) pursuant to the Agreement Between the City of Escondido and the Vista Irrigation District for the Allocation and Management of Local Water Facilities, executed in January 2017 (“Local Entities’ Agreement”). The City of Escondido’s share of the cost for algae mitigation shall not exceed $300,000.

Staff Recommendation: Approval (Utilities Department, Water Division: Christopher W. McKinney) Presenter: Reed Harlan
a. Resolution No. 2022-55

CONSENT RESOLUTIONS AND ORDINANCES (COUNCIL/RRB)
The following Resolutions and Ordinances were heard and acted upon by the City Council/RRB at a previous City Council/Mobilehome Rent Review meeting. (The title of Ordinances listed on the Consent Calendar are deemed to have been read and further reading waived.)

14. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ESCONDIDO, CALIFORNIA, APPROVING THE

ESCONDIDO POLICE DEPARTMENT MILITARY EQUIPMENT USE POLICY - Approved on April 20, 2022 with a vote of 5/0
a. Ordinance No. 2022-07 (Second Reading and Adoption)
7 Wednesday, May 11, 2022

CURRENT BUSINESS

15. APPROVAL TO EXECUTE A WATER INFRASTRUCTURE FINANCE AND INNOVATION ACT (WIFIA) LOAN

FOR THE LAKE WOHLFORD DAM REPLACEMENT PROJECT -
Request the City Council take the following actions:

Adopt Resolution No. 2022 -03, approving execution of a loan agreement in an amount not to exceed $66,000,000 from the U.S. Environmental Protection Agency, Water Infrastructure Finance and Innovation Act (“WIFIA”) Program for construction costs associated with the Lake Wohlford Dam Replacement Project.

Authorize the Mayor, or his designee, to execute all documents related to this transaction.

It is requested that the Escondido Joint Powers Authority adopt Resolution No. EJPFA 2022-01, authorizing the execution and delivery of a WIFIA Loan Agreement, a WIFIA Note, an Installment Purchase Agreement, and certain documents and other matters in connection therewith (water system).

Staff Recommendation: Approval (Utilities Department: Christopher W. McKinney) Presenter: Angela Morrow
a. Resolution No. 2022-03
b. Resolution No. EJPFA 2022-01

16. FINANCIAL REPORT FOR THE QUARTER ENDED MARCH 31, 2022 AND BUDGET ADJUSTMENT REQUEST- Request the City Council receive and file the third quarter financial report and approve a budget adjustment to amend the Fiscal Year 2021/22 operating budget.

Staff Recommendation: Approval (Finance Department: Christina Holmes) Presenters: Christina Holmes and Michelle Collett

WORKSHOP

17. FISCAL YEAR 2022/23 OPERATING BUDGET BRIEFING -
Request the City Council provide direction regarding the Fiscal Year 2022/23 General Fund Operating Budget.

Staff Recommendation: Provide Direction (Finance Department: Christina Holmes) Presenter: Christina Holmes
8 Wednesday, May 11, 2022

18. FIVE-YEAR CAPITAL IMPROVEMENT PROGRAM AND FISCAL YEAR 2022/23 CAPITAL IMPROVEMENT

PROGRAM BUDGET STATUS -
Request the City Council review the proposed Fiscal Year 2022/23 Five-Year Capital Improvement Program and Budget and authorize staff to return with the Fiscal Year 2022/23 Capital Improvement Program and Budget for final adoption on June 8, 2022.

Staff Recommendation: Provide Direction (Finance Department: Christina Holmes) Presenter: Edrilyn D. Cruz

FUTURE AGENDA

19. FUTURE AGENDA
The purpose of this item is to identify issues presently known to staff or which members of the City Council wish to place on an upcoming City Council agenda. Council comment on these future agenda items is limited by California Government Code Section 54954.2 to clarifying questions, brief announcements, or requests for factual information in connection with an item when it is discussed.

Staff Recommendation: None (City Clerk's Office: Zack Beck)

COUNCILMEMBERS SUBCOMMITTEE REPORTS AND OTHER REPORTS
CITY MANAGER’S WEEKLY ACTIVITY REPORT
The most current information from the City Manager regarding Economic Development, Capital Improvement Projects, Public Safety, and Community Development. This report is also available on the City’s website, www.escondido.org.

ORAL COMMUNICATIONS
In addition to speaking during particular agenda items, the public may address the Council on any item which is not on the agenda provided the item is within the subject matter jurisdiction of the City Council. State law prohibits the Council from discussing or taking action on such items, but the matter may be referred to the City Manager/staff or scheduled on a subsequent agenda. Speakers are limited to only one opportunity to address the Council under Oral Communications.

ADJOURNMENT

UPCOMING MEETING SCHEDULE
Wednesday, May, 25, 2022 4:00 & 5:00 PM Regular Meeting, Council Chambers Wednesday, June, 08, 2022 4:00 & 5:00 PM Regular Meeting, Council Chambers

SUCCESSOR AGENCY
9 Wednesday, May 11, 2022

Members of the E scondido City Council also sit as the Successor Agency to the Community Development Commission, Escondido Joint Powers Financing Authority, and the Mobilehome Rent Review Board.

10 Consent Item No. 1 May 11, 2022

A F F I D A V I T S

OF

I T E M

P O S T I N G
11 Item1.

STAFF REPORT

May 11, 2022
File Number 0400-40

SUBJECT

APPROVAL OF WARRANT REGISTER (COUNCIL)

DEPARTMENT
Finance

RECOMMENDATION
Request approval for City Council and Housing Successor Agency warrant numbers:
362489 – 362710 dated April 13, 2022
362711 – 362712 dated April 14, 2022
362713 – 362848 dated April 20, 2022
362849 – 363045 dated April 27, 2022

Staff Recommendation: Approval (Finance Department: Christina Holmes)

FISCAL ANALYSIS
The total amount of the warrants for the following periods are as follows:

April 7 – April 13, 2022, is $7,784,762.41
April 14 – April 20, 2022, is $1,514,822.38
April 21 – April 27, 2022, is $2,986,088.32

BACKGROUND

The Escondido Municipal Code Section 10-49 states that warrants or checks may be issued and paid prior to audit by the City Council, provided the warrants or checks are certified and approved by the Director of Finance as conforming to the current budget. These warrants or checks must then be ratified and approved by the City Council at the next regular Council meeting.

12 Item2.

Consent Item No. 3 May 11, 2022

A P P R O V A L

O F

M I N U T E S

13 Item3.

STAFF REPORT

May 11, 2022
File Number 0480-70

SUBJECT
$5,000 LIBRARY INNOVATION LAB GRANT

DEPARTMENT
Library

RECOMMENDATION

Request the City Council adopt Resolution 2022-44 authorizing the Deputy City Manager/Director of Communications & Community Services to accept the $5,000 California Humanities 2022 Library Innovation Lab Program grant and the completion of the associated budget adjustment and documents necessary to receive and spend the funding.

Staff Recommendation: Approval (Communications & Community Services: Joanna Axelrod)

Presenter: Dara Bradds, Library Director

FISCAL ANALYSIS
There is no impact to the General Fund.

PREVIOUS ACTION
None.

BACKGROUND
Now entering its fifth year, the California Humanities Library Innovation Lab program supports the design and delivery of responsive and relevant public humanities programming in California’s public libraries. The program provides a nine-month practice-based professional development experience and a cash grant of $5,000 to ten participating library programmers each year. To date, 52 California libraries from across the state have participated in the program which aims to provide welcoming experiences for immigrants and foster more inclusive communities.

The Escondido Public Library will use this professional development opportunity to collaborate with a cohort of other library innovators to research, design, and implement an initiative around welcoming immigrants through cultural programming.
17 Item4.

RESOLUTIONS
A. Resolution 2022-44

ATTACHMENTS
A. Budget Adjustment

18 Item4.

RESOLUTION NO. 2022-44

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ESCONDIDO, CALIFORNIA, AUTHORIZING THE DEPUTY

CITY MANAGER/DIRECTOR OF COMMUNICATIONS &

COMMUNITY SERVICES TO EXECUTE, ON BEHALF OF

THE CITY, A BUDGET ADJUSTMENT AND NECESSARY

DOCUMENTS TO ACCEPT AND EXPEND FUNDS FROM
THE 2022 CALIFORNIA HUMANITIES LIBRARY

INNOVATION LAB GRANT PROGRAM

WHEREAS, California Humanities is a nonprofit organization and partner of the National Endowment for the Humanities and has a mission to connect Californians to ideas and one another in order to understand our shared heritage and diverse cultures, inspire civic participation, and shape our future; and
WHEREAS, California Humanities is in its fifth year of fu nding the Library Innovation Lab, a nationally recognized program, meant to train and develop professional library programmers to design and implement new public humanities projects that reach and engage underserved immigrant groups in California; and
WHEREAS, the City of Escondido celebrates and supports its culturally diverse community and aims to offer programming that reaches and engages with all community members; and WHEREAS, the Escondido Public Library has been selected by California Humanities t o receive a $5,000 grant and participate in the 2022 Library Innovation Lab cohort.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Escondido, California:

1. That the above recitations are true.
14 Item4.

2. That the City Council authorizes the Deputy C ity Manager/Director of Communications & Community Services to execute, on behalf of the City, a Budget Adjustment and necessary documents to accept and expend funds from the 2022 California Humanities Library Innovation Lab Grant Program

15 Item4.

FM\105 (Rev.11/06)

C I T Y O F E S C O N D I D O

BUDGET ADJUSTMENT REQUEST

Date of Request: 4/26/22 For Finance Use Only
Log #
Fiscal Year ear Department: Library
Division:

Project/Budget Manager: Joanna Axelrod 4871
Name Extension
Council Date (if applicable): 5/11/22
(attach copy of staff report)
_____ Budget Balances
_____ General Fund Accts
_____ Revenue
_____ Interfund Transfers
_____ Fund Balance

Project/Account Description Account Number Amount of Increase Amount of Decrease Grant from California
Humanities
4121-401-449204 $5,000
2022 Library Innovation Lab
Program
401-449204 $5,000

Explanation of Request:

Grant funding from California Humanities 2022 Library Innovation Lab program to support professional and program development.

APPROVALS

Department Head Date

City Manager Date

Finance Date

City Clerk Date
Distribution (after approval): Original: Finance
DocuSign Envelope ID: 6F05AEBD-C2E6-41C9-B171-B211D0095E12 4/27/2022
4/27/2022
16 Item4.

STAFF REPORT

May 11, 2022
File Number 0600-10

SUBJECT
BID AWARD FOR THE CITRACADO PARKWAY, ANDREASEN DRIVE TO WEST VALLEY PARKWAY; -

DEPARTMENT
Engineering Services

RECOMMENDATION
Request the City Council adopt Resolution No. 2022-56, authorizing the Mayor, on behalf of the City, to execute a public improvement agreement with Flatiron West, Inc. for construction of the Citracado Parkway, Andreasen Drive to West Valley Parkway Project (“Project”) in the amount of $23,792,400.50 to complete street improvements and extension of Citracado Parkway from Andreasen Drive to West Valley Parkway.

Staff Recommendation: Approval (Engineering Services Department: Julie Procopio) Presenter: Julie Procopio, Director of Engineering Services

FISCAL ANALYSIS
Funds in the amount of $ 29.7 million remain in the Project budget, including a $12.5 million Local Partnership Program grant, a competitive grant selected by Caltrans. The engineer’s cost estimate was updated in December 2021 , and provided the anticipated range for cost of construction to be between $27.5 and $30.6 million. The Capital Improvement Program (“CIP”) budget includes programming toward the project of $2.3 million in Traffic Impact Fees in Fiscal Year 22/23.

PREVIOUS ACTION
On April 18, 2012, the Council adopted Resolution No. 2012-40 approving the Specific Alignment Plan and certifying and approving the Final Environmental Impact Report, CEQA Findings, Statement of Overriding Considerations, and Mitigation Monitori ng and Reporting Program for the Citracado Parkway Extension Project.

On May 26, 2021 the City Council adopted Resolution No. 2021-82, certifying and approving Addenda’s 1 and 2 to an adopted EIR prepared for the Citracado Parkway Extension Project (ER 2006-10, ENG12-0011).

33 Item5.

BACKGROUND

The Citracado Parkway Extension Project will complete construction of the missing section of Citracado Parkway from Andreasen Drive to Harmony Grove Village Parkway, and widen the existing roadway segment between Avenida Del Diablo to West Valley Parkway. Planned improvements include pavement, curb, gutter, sidewalk, a Class 2 bike lane, updated and new street lights, landscaped medians-parkways- embankments, and sound walls. Major intersections will be signalized and a bridge structure constructed over Escondido Creek providing a major southern access to Palomar Hospital.

On April 21, 2022, four sealed bids were received in response to the advertised request for bids for the Project. The confirmed totals for the base bids are listed below:

Flatiron West, Inc. $23,792,400.50
Security Paving $25,904,990.20
Ortiz Enterprises, Inc. $26,298,637.26
SEMA Construction, Inc. $29,167,413.47

Staff recommends that the bid submitted by Flatiron West, Inc. be considered the lowest responsive and responsible bid, and that a contract be awarded to Flatiron West, Inc. in the amount of $23,792,400.50.

Flatiron West, Inc.’s bid was below the Engineer’s Estimate range of $27,500,000 to $30,600,000.

During the bid process, prospective bidders commented that the timeline for construction needed to be lengthened considering the environmental, cultural and utility relocation timelines . An addendum was issued adding two months to the contract duration. The highly competitive bid prices received were partially due to this change. City staff will return to the City Council in June to request changes to construction management contracts to reflect the extended construction period.

In January 2022, SDG&E and its contractor began relocation of their transmission electric facilities that conflict with the project. SDG&E’s relocation work is still on -going, and is anticipated to be completed prior to the start of Project.

City staff and the construction management team are preparing public outreach information to be shared with the community in advance of construction. It is anticipated that construction will begin during Fall 2022 and be completed by Summer 2024.

RESOLUTIONS
A. Resolution No. 2022-56
B. Resolution No. 2022-56 - Exhibit A – Public Improvement Agreement

34 Item5.

RESOLUTION NO. 2022-56

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ESCONDIDO, CALIFORNIA, AUTHORIZING THE MAYOR

TO EXECUTE, ON BEHALF OF THE CITY, A PUBLIC

IMPROVEMENT AGREEMENT FOR THE CITRA CADO

PARKWAY, ANDREASEN DRIVE TO WEST VALLEY

PARKWAY PROJECT

WHEREAS, the City Council has allocated funding in the adopted Capital Improvement Program Budget for the Citracado Parkway, Andreasen Drive to West Valley Parkway Project; and WHEREAS, a notice inviting bids for said improvements was duly published; and WHEREAS, pursuant to said notice, four sealed bids for the project were opened and evaluated on April 21, 2022; and
WHEREAS, Flatiron West, Inc. was determined to be the lowest responsive and responsible bidder; and
WHEREAS, this City Council desires at this time and deems it to be in the best public interest to authorize a Public Improvement Agreement to Flatiron West, Inc. in the amount of $23,792,400.50.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Escondido, California:

1. That the above recitations are true.

2. That the City Council authorizes the Mayor to execute, on behalf of the City, a Public Improvement Agreement with Flatiron West, Inc., in a substantially similar form to that which is attached and incorporated to this Resolution as Exhibit “A”, and subject to final approval as to form by the City Attorney.
19 Item5.

City of Escondido
Citracado Parkway Project
Public Improvement Agreement (Contractor) - 1 - CAO: 8/26/2021

CITY OF ESCONDIDO

PUBLIC IMPROVEMENT AGREEMENT
This Public Improvement Agreement (“Agreement”) is made and entered into as of this ____ day of _____________________, 2022 (“Effective Date”),
B
etween: CITY OF ESCONDIDO
a California municipal corporation
201 N. Broadway
Escondido, CA 92025
Attn: Matt Souttere
760-839-4574
("CITY")
A
nd: Flatiron West, Inc.
a Delaware corporation
12121 Scripps Summit Drive, Suite 400
San Diego, CA, 92131
Attn: Mario Martinez, Vice President
760-916-9100
("CONTRACTOR").
(The CITY and CONTRACTOR each may be referred to herein as a “Party” and collectively as the “Parties.”)
WHEREAS, the Parties desire to enter into this Agreement for the per formance of work relating to the C itracado Parkway P roject (“Project”), occurring between West Valley Parkway and Andreasen Drive in the City of Escondido (“Property”), as further described herein.

NOW, THEREFORE, in consideration of the mutual covenants, promises, terms, and conditions set forth herein, and the mutual benefits derived therefrom, the Parties hereby agree as follows:

1. P
roject Documents . The Notice Inviting Sealed Bids/Notice to Contractors, Instructions to Bidders, Bid Form, Designation of Subcontractors, Workers' Compensation Certificate, Change Orders, Shop Drawing Transmittals, Information Required of CONTRACTOR, Non- collusion A
ffidavit, Insurance Certificates, Guarantees, General Conditions, Supplementary General Conditions, Special Conditions, Plans, Drawings, Specifications, the Agreement , and all modifications, addenda, and amendments thereto (“Project Documents”) are incorporated herein b
y this reference as if fully set forth herein. The Project Documents are complementary, and what is called for by any one shall be as binding as if called for by all.

Resolution No. 2022-56
Exhibit A

20 Item5.

City of Escondido
Citracado Parkway Project
Public Improvement Agreement (Contractor) - 2 - CAO: 8/26/2021

2. Description and Performance of Work . CONTRACTOR shall furnish all work described in the Project Documents (“Work”).

3. Compensation. In exchange for CONTRACTOR’s completion of the Work, the CITY shall pay , and CONTRAC TOR sha ll accept in full, an amount not to exceed the sum of $23,792,400.50 (“Contract Price”). CONTRACTOR shall be compensated only for performance of the Work described in this Agreement. No compensation shall be provided for any other work or services without the CITY’s prior written consent.

4. Term and Time of Performance. CONTRACTOR shall commence work within one week from the CITY's notice to proceed. CONTRACTOR shall diligently perform and complete the Work with professional quality and technical accuracy by 350 working days from the Notice to Proceed Date established at the project pre -construction meeting (“Completion Date”). Extension of terms or time of performance shall be subject to the CITY’s sole discretion.

5. Time Is of the Essence
. If the Work is not completed by the Completion Date, it is understood that the CITY will suffer damage. It being impractical and infeasible to determine the amount of actual damage, in accordance with Government Code section 53069.85, the Parties agree that CONTRACTOR shall pay to the CITY as fixed and liquidated damages, and not as a penalty, the sum of $ 1,500 per day for each calendar day of delay until the Work is completed and accepted (“Liquidated Damages Amount”). Th e Liquidated Damages Amount shall be deducted from any payments due to, or that become due to, CONTRACTOR. CONTRACTOR and CONTRACTOR'S surety shall be liable for the Liquidated Damages Amount.

6. Insurance Requirements.

a. CONTRACTOR shall procure and maintain, at its own cost, during the entire term of this Agreement, insurance against claims for injuries to persons or damages to property that may arise from or in connection with the performance of the Work, and the results of such Work, by CONTRACTOR, its agents, representatives, employees, or subcontractors. Insurance coverage shall be at least as broad as the following:

(1) Commercial General Liability . Insurance Services Office (“ISO”) Form CG 0001 11188 covering Commercial General Liability on an “occurrence” basis, including products and completed operations, property damage, bodily injury (including emotional distress), sickness, disease, or death of any person other than the CONTRACTOR's employees , and personal and advertising injury, and damages because of injury or destruction of tangible property, including loss of use resulting there from, with limits no less than $3,000,000 combined single limit coverage per occurrence for bodily injury and property damage; or, if a general aggregate limit is applicable, either: (i) the general aggrega te limit shall specifically apply to the project identified in the bid specifications or to the location of such project which is the subject of these bid specifications with coverage to be no less than $3,000,000, or (ii) the general aggregate shall be at least $3,000,000 combined single limit coverage per occurrence for bodily injury and property damage.

(2) Automobile Liability . ISO Form CA 00 01 covering any auto (Code 1), or if CONTRACTOR has no owned autos, hired (Code 8) and non- owned autos (Code 9), including damages because of bodily injury, death of a person, or property damage arising out of the ownership, maintenance, or use of a motor vehicle, all mobile equipment, and vehicles moving under CONTRACTOR’s control and engaged in the Work, with limits no less than $3,000,000 combined single limit per accident for bodily injury and property damage.

Resolution No. 2022-56
Exhibit A

21 Item5.

City of Escondido
Citracado Parkway Project
Public Improvement Agreement (Contractor) - 3 - CAO: 8/26/2021

(3) Workers’ Compensation. Workers' Compensation as required by the State of California, with Statutory Limits, and Employer’s Liability Insurance with limits of no less than $1,000,000 per accident for bodily injury or disease.

(4) Fire Insurance. Intentionally Omitted.

(5) Builder’s Risk/“All Risk” Insurance . The CONTRACTOR, during the progress of the Work and until final acceptance of the Work by CITY, shall maintain Builder's Risk/"All Risk," course-of-construction insurance satisfactory to CITY issued on a completed value basis of all WORK pursuant to this Agreement. Coverage is to provide extended coverage and insurance against vandalism, theft, malicious mis chief, perils of fire, sprinkler leakage, civil authority, sonic boom, earthquake, collapse, flood, wind, lightning, smoke, riot, debris removal (including demolition), and reasonable compensation for the Engineer's services and expenses required as a result of such insured loss upon the Work, including completed Work and Work in progress to the full insurable value thereof.

Such insurance shall include the CITY and the City Engineer as an additional named insured and any other person with an insurable interest designated.

(6) If CONTRACTOR maintains broader coverage and/or higher limits than the minimums otherwise required by this Agreement, the CITY requires and shall be entitled to the broader coverage and/or the higher limits maintained by CONTRACTOR.

b. Each insurance policy required by this Agreement must be acceptable to the City Attorney and shall meet the following requirements:

(1) Compliance with General Condition Requirements . Insurance coverage shall comply with and meet all requirements set forth in Article 5.2 of General Conditions

(2) Acceptability of Insurers. Insurance coverage must be provided by an insurer authorized to conduct business in the state of California with a current A.M. Best’s rating of no less than A-:VII, or as approved by the CITY.

(3) Additional Insured Status . Both the Commercial General Liability and the Automobile Liability policies must name the CITY (including its officials, officers, agents, employees, and volunteers) specifically as an additional insured under the policy on a s eparate endorsement page. The Commercial General Liability additional insured endorsement shall be at least as broad as ISO Form CG 20 10 11 85, or if not available, through the addition of both CG 20 10, CG 20 26, CG 20 33, or CG 20 38, and CG 20 37 if a later edition is used. The Automobile Liability additional insured endorsement shall be at least as broad as ISO Form CA 20 01.

(4) Primary Coverage. CONTRACTOR’s insurance coverage shall be primary coverage at least as broad as ISO CG 20 01 04 13 with res pect to the CITY, its officials, officers, agents, employees, and volunteers. Any insurance or self -insurance maintained by the CITY, its officials, officers, agents, employees, or volunteers shall be in excess of CONTRACTOR’s insurance and shall not contribute with it.

(5) Notice of Cancellation. Each insurance policy shall provide that coverage shall not be canceled, except with prior written notice to the CITY.

Resolution No. 2022-56
Exhibit A

22 Item5.

City of Escondido
Citracado Parkway Project
Public Improvement Agreement (Contractor) - 4 - CAO: 8/26/2021 (6) Subcontractors. If applicable, CONTRACTOR shall require and verify that all subcontractors m aintain insurance meeting all the requirements stated within this Agreement, and CONTRACTOR shall ensure that the CITY (including its officials, officers, agents, employees, and volunteers) is an additional insured on any insurance required from a subcontractor.

(7) Waiver of Subrogation. CONTRACTOR hereby grants to the CITY a waiver of any right to subrogation that any insurer of CONTRACTOR may acquire against the CITY by virtue of the payment of any loss under such insurance. CONTRACTOR agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation, but this subsection shall apply regardless of whether or not the CITY has received a waiver of subrogation endorsement from the insurer. Any Workers’ Compensation policy required by this Agreement shall be endorsed with a waiver of subrogation in favor of the CITY for all work performed by the CONTRACTOR, its agents, representatives, employees and subcontractors.

(8) Self-Insurance. CONTRACTOR may, with the CITY’s prior written consent , fulfill some or all of the insurance requirements contained in this Agreement under a plan of self - insurance. CONTRACTOR shall only be permitted to utilize such self -insurance if, in the opinion of the CITY, CONTRACTOR’s (i) net worth and (ii) reserves for payment of claims of liability against CONTRACTOR are sufficient to adequately compensate for the lack of other insurance coverage required by this Agreement. CONTRACTOR’s utilization of self -insurance shall not in any way limit the liabilities assumed by CONTRACTOR pursuant to this Agreement.

(9) Self-Insured Retentions. Self -insured retentions must be declared to and approved by the CITY.

c. Verification of Coverage. At the time CONTRACTOR executes this Agreement, CONTRACTOR shall provide the CITY with original Certificates of Insurance including all required amendatory endorsements (or copies of the applicable policy language effecting the insurance coverage required by this Agreement), which shall meet all requirements under this Agreement. The CIT Y reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by this Agreement, at any time.

d. Special Risks or Circumstances. The CITY reserves the right, at any point during the term of this Agreement, to modify the insurance requirements in this Agreement, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances.

e. No Limitation of Obligations. The insurance requirements within this Agreement, including the types and limits of insurance coverage CONTRACTOR must maintain, and any approval of such insurance by the CITY, are not intended to and shall not in any manner limit or qualify the liabilities and obligations otherwise as sumed by CONTRACTOR pursuant to this Agreement, including but not limited to any provisions within this Agreement concerning indemnification.

f. Compliance. Failure to comply with any of the insurance requirements in this Agreement , including but not limited to a lapse in any required insurance coverage during the term of this Agreement, shall be a material breach of this Agreement. Compliance by CONTRACTOR with the requirement to carry insurance and furnish certificates, policies, Additional Insured Endorsement and Declarations Page evidencing the same shall not relieve the CONTRACTOR from liability assumed under any provision of this Agreement, including, Resolution No. 2022-56
Exhibit A

23 Item5.

City of Escondido
Citracado Parkway Project
Public Improvement Agreement (Contractor) - 5 - CAO: 8/26/2021 without limitation, the obligation to defend and indemnify the CTY and the City Engineer. In the event that CONTRACTOR fails to comply with any insurance requirement set forth in this Agreement, in addition to any other remedies the CITY may have, the CITY may, at its sole option, (i) immediately terminate this Agreement; or (ii) order CONTRACTOR to st op Work under this Agreement and/or withhold any payment that becomes due to CONTRACTOR until CONTRACTOR demonstrates compliance with the insurance requirements in this Agreement.

7. Indemnification, Duty to Defend, and Hold Harmless.

a. CONTRACTOR (including CONTRACTOR’s agents, employees, and subcontractors, if any) shall indemnify, defend, and hold harmless the CITY, its officials, officers, agents, employees, and volunteers from and against any and all claims, demands, actions, causes of action, proceedings (including but not limited to legal and administrative proceedings of any kind), suits, fines, penalties, judgments, orders, levies, costs, expenses, liabilities, losses, damages, or injuries, in law or equity, including without limitation the payment of all consequential damages and attorney’s fees and other related litigation costs and expenses (collectively, “Claims”), of every nature caused by, arising out of, or in connection with CONTRACTOR’s (including CONTRACTOR’s agents, employees, and subcontractors, if any) Work pursuant to this Agreement or its failure to comply with any of its obligations contained herein, except where caused by the active negligence, sole negligence, or willful misconduct of the CITY.

b. CONTRACTOR (including CONTRACTOR’s agents, employees, and subcontractors, if any) shall indemnify, defend, and hold harmless the CITY, its officials, officers, agents, employees, and volunteers from and against any and all Claims caused by, arising under, or resulting from any violation, or claim of violation, of the San Diego Municipal Storm Water Permit (Order No.

R9-2013-0001, as amended) of the California Regional Water Quality Control Board, Region 9, San Diego, that the CITY might suffer, incur, or become subject to by reason of, or occurring as a result of, or allegedly caused by, any Work performed pursuant to this Agreement.

c. All terms and provisions within this Section 7 shall survive the termination of this Agreement.

8. Bonds
.

a. CONTRACTOR shall furnish and deliver to the CITY, simultaneously with the execution of this Agreement, the following surety bonds:

(1) Faithful Performance Bond. CONTRACTOR shall furnish to the CITY a surety bond in an amount equal to the Contract Price as security for faithful performance of this Agreement.

(2) Labor and Materials Bond. CONTRACTOR shall furnish to the CITY a surety bond in an amount equal to the Contract Price as security for payment to persons performing labor and furnishing materials in connection with the Project.

b. All bonds furnished to the CITY pursuant to this Agreement shall be in the form set forth herein and approved by the City Attorney.

c. All bonds shall be executed by sureties that are named in the current list of "Companies Holding Certificates of Authority as Acceptable Sureties on Federal bonds and as Acceptable Reinsuring Companies" as published in Circular 570 (amended) by the Audit Staff, Bureau of Resolution No. 2022-56
Exhibit A

24 Item5.

City of Escondido
Citracado Parkway Project
Public Improvement Agreement (Contractor) - 6 - CAO: 8/26/2021 Government Financial Operations, U.S. Treasury Department. All bonds signed by an agent must be accompanied by a certified copy of such agent's authority to act.

d. If the surety on any bond furnished by the CONTRACTOR is declared bankrupt or becomes insolvent or its right to do business is terminated in any state where any part of the Work is located, the CONTRACTOR shall, within seven days thereafter, substitute another bond and surety, which must be acceptable to the C ITY. No portion of the Work shall be performed without bonds, in a form and issued by a surety acceptable to the City. If one or more of such bonds shall, at any time, not be in full force and effect, CONTRACTOR shall immediately cease performance of the Work until CONTRACTOR is in full compliance with the bonding requirements of this Agreement and California law. All delays and costs incurred or resulting from such occurrence shall be to the exclusive account of CONTRACTOR. Failure of the CONTRACTOR to promptly cure any failure to have the necessary bonds in full force and effect shall be grounds for immediate termination of this Agreement.

e. All bonds shall be obtained from surety companies that are duly licensed or authorized in the State of California. Such surety companies shall also meet any additional requirements and qualifications as may be provided in the Supplementary General Conditions.

9. Substitution of Securities . This Agreement is subject to California Public Contract Code section 22300, which permits the substitution of securities for any monies withheld by the C ITY to ensure performance of this Agreement . At the request and expense of the CONTRACTOR, securities equivalent to the amount withheld shall be deposited with the CITY, or with a state - or federally- chartered bank in this state as the escrow agent, who shall then pay those moneys to CONTRACTOR. Upon satisfactory completion and acceptance of the W ork, such securities shall be returned to the CONTRACTOR.

10. Contractor Default. In the event CONTRACTOR, for a period of 10 calendar days after receipt of written demand from the CITY to do so (“Cure Period”), fails to furnish tools, equipment, or labor in the necessary quantity or quality required by this Agreement, or fails to prosecute the Work and all parts thereof in a diligent and workmanlike manner, or after commencing to do so within the Cure Period, fails to continue to do so, then the CITY in its sole discr etion may exclude the CONTRACTOR from the Property, or any portion thereof, and take exclusive possession of the Property or any portion thereof, together with all material and equipment thereon, and may complete the Work or any portion of the W ork, either by (i) furnishing the necessary tools, equipment, labor , or material s; or (ii) letting the unfinished portion of the work, or any portion thereof, to another contractor ; or (iii) demanding the surety hire another contractor; or (iv) any combination of such methods. The CITY’s procuring of the completion of the Work, or the portion of the Work taken over by the CITY, shall be a charge against the CONTRACTOR and may be deducted from any money due or to become due to CONTRACTOR from the CITY, or the CONTRACTOR shall pay the CITY the amount of s uch charge, or the portion thereof unsatisfied.

The sureties provided for under this Agreement shall become liable for payment if CONTRACTOR fails to pay in full any such cost incurred by the CITY. The permissible charges for any such procurement of the completion of the Work include actual costs and fees incurred to third party individuals and entities (including but not limited to consultants, attorneys, inspectors, and designers) and actual costs incurred by the CITY for the increased dedication of time of the CITY’s employees to the Project.

11. Other Legal Requirements Incorporated. Each and every provision of law and clause required by law to be inserted in this Agreement or its attachments shall be deemed to be inserted herein, and this Agreement shall be read and enforced as though such law or clause were included herein, and if through mistake or otherwise any such provision is not inserted, or is not currently inserted, Resolution No. 2022-56
Exhibit A

25 Item5.

City of Escondido
Citracado Parkway Project
Public Improvement Agreement (Contractor) - 7 - CAO: 8/26/2021 then upon application of either Party, the Agreement shall forthwith be physically amended to make such insertion or correction, without further changes to the remainder of the Agreement.

12. Merger Clause. Th is Agreement, together with its attachments or other documents described or incorporated herein, if any, constitutes the entire agreement and understanding of the CITY and CONTRACTOR concerning the subject of this Agreement and supersedes and replaces all prior negotiations, understandings, or proposed agreements, written or oral, except as otherwi se provided herein. In the event of any conflict between the provisions of this Agreement and any of its attachments or related documents, if any, the provisions of this Agreement shall prevail.

13. Attorney’s Fees and Costs. In any action to enforce the terms and conditions of this Agreement, the prevailing Party shall be entitled to reasonable attorney’s fees and costs.

14. Independent Contractor . CONTRACTOR is an independent contractor, and no agency or employment relationship is created by the execution of this Agreement.

15. Amendment. This Agreement shall not be amended except in a writing signed by the CITY and CONTRACTOR, and pursuant to action of the Escondido City Council.

16. Anti-Waiver Clause . None of the provisions of this Agreement shall be waived by the CITY because of previous failure to insist upon strict performance, nor shall any provision be waived because any other provision has been waived by the CITY, in whole or in part.

17. Severability. This Agreement shall be performed and shall be enforceable to the full extent allowed by applicable law, and the illegality, invalidity, waiver, or unenforceability of any provision of this Agreement shall not affect the legality, validity, applicability, or enforceability of the remaining provisions of this Agreement.

18. Governing Law. This Agreement and all rights and obligations arising out of it shall be construed in accordance with the laws of the State of California. Venue for any action arising from this Agreement shall be conducted only in the state or federal courts of San Diego County, California.

19. Counterparts. This Agreement may be executed on separate counterparts, each of which shall be an original and all of which taken together shall constitute one and the same instrument. Delivery of an executed signature page of this Agreement by electronic means, including an attachment to an email, shall be effective as delivery of an executed original. The Agreement on file with the City is the copy of the Agreement that shall take precedence if any differences exist between or among copies or counterparts of the Agreement.

20. Provisions Cumulative . The foregoing provisions are cumulative to, in addition to, and not in limitation of any other rights or remedies available to the CITY.

21. Business License . CONTRACTOR sh all obtain a City of Escondido Business License prior to execution of this Agreement and shall maintain such Business License throughout the term of this Agreement.

22. Compliance with Laws, Permits, and Licenses . CONTRACTOR shall keep itself informed of and comply with all applicable federal, state, and local laws, statutes, codes, ordinances, regulations, rules, and other legal requirements in effect during the term of this Agreement. This shall include, but shall not be limited to, all California Labor Code laws regarding payment of prevailing wages and all OSHA regulations. CONTRACTOR shall obtain any and all permits, licenses, and other authorizations necessary to perform the work under this Agreement. Neither the CITY, nor any Resolution No. 2022-56
Exhibit A

26 Item5.

City of Escondido
Citracado Parkway Project
Public Improvement Agreement (Contractor) - 8 - CAO: 8/26/2021 elected or appointed boards, officers, officials, employees, or agents of the CITY, shall be liable, at law or in equity, as a result of any failure of CONTRACTOR to comply with this section.

23. Prevailing Wages and Department of Industrial Relations Compliance . Pursuant to California Labor Code section 1770 et seq., CONTRACTOR agrees that a prevailing rate and scale of wages, in accordance with applicable laws, shall be paid in performing this Agreement.

CONTRACTOR shall keep itself informed of and comply with all applicable federal, state, and local laws, statutes, codes, ordinances, regulations, rules, and other legal requirements pertaining to the payment of prevailing wages, including but not limited to the keeping of certified payroll records, overtime pay, employment of apprentices, and workers' compensation coverage, as further set forth in the General Conditions . CONTRACTOR shall file the required workers' compensation certificate before commencing work under this Agreement. This project is subject to compliance monitoring and enforcement by the Department of Industrial Relations.

CONTRACTOR shall post all job site notices required by regulation. CONTRACTOR, as well as any subcontractors, shall be registered pursuant to California Labor Code section 1725.5 to be qualified to bid on, be listed in a bid proposal (subject to the requirements of Public Contract Code section 4104), or engage in the performance of any public works contract subject to the requirements of Division 2, Part 7, Chapter 1 of the California Labor Code. Neither the CITY, nor any elected or appointed boards, officers, officials, employees, or agents of the CITY, shall be liable, at law or in equity, as a result of any failure of CONTRACTOR to comply with this section.

24. Immigration Reform and Control Act of 1986 . CONTRACTOR shall keep itself informed of and shall comply with the Immigration Reform and Control Act of 1986 (“IRCA”). CONTRACTOR represents and warrants that all of its employees and the employees of any subcontractor retained by CONTRACTOR who p erform any portion of the Work under this Agreement are and will be authorized to perform the Work in full compliance with the IRCA. CONTRACTOR affirms that as a licensed contractor and employer in the State of California, all new employees must produce proof of eligibility to work in the United States within the first three days of employment and that only employees legally eligible to work in the United States will perform the Work . CONTRACTOR agrees to comply with the IRCA before commencing any portion of the Work, and continuously throughout the performance of the Work and the term of this Agreement.

25. Effective Date. Unless a different date is provided in this Agreement, the effective date of this Agreement shall be the latest date of execution set forth by the names of the signatories below. (SIGNATURE PAGE FOLLOWS)
Resolution No. 2022-56
Exhibit A

27 Item5.

City of Escondido
Citracado Parkway Project
Public Improvement Agreement (Contractor) - 9 - CAO: 8/26/2021 IN WITNESS WHEREOF, this Agreement is executed by the Parties or their duly authorized representatives as of the Effective Date:

CITY OF ESCONDIDO

Date: __________________ ___________________________________ Paul McNamara, Mayor

FLATIRON WEST, INC.

Date: __________________ ___________________________________ Signature

___________________________________
Name & Title (please print)

___________________________________
Contractor's License No.

___________________________________
Tax ID/Social Security No.

APPROVED AS TO FORM:

OFFICE OF THE CITY ATTORNEY
MICHAEL R. MCGUINNESS, City Attorney

BY: __________________________

THE CITY OF ESCONDIDO DOES NOT DISCRIMINATE AGAINST QUALIFIED PERSONS WITH DISABILITIES.

Resolution No. 2022-56
Exhibit A

28 Item5.

City of Escondido
Citracado Parkway Project
Faithful Performance Bond -1- CAO: 1/22/2021
Bond No.: _______________
Premium: _______________

FAITHFUL PERFORMANCE BOND

KNOW ALL BY THESE PRESENTS,

WHEREAS, The City Council of the City of Escondido, State of California, and Flatiron West, Inc. , a Delaware corporation (“Principal”), have entered into th at certain Public Improvement Agreement dated ______________ (“Agreement,” hereby referred to and made a part hereof ), whereby Principal has agreed to install and complete certain designated public improvements associated with the Citracado Parkway, Andreasen Drive to West Valley Parkway Project.

WHEREAS, the Principal is required under the terms of the Agreement to furnish a bond for the faithful performance of the Agreement.

NOW, THEREFORE, we, the Principal and __________, a ______________ organized and existing under the laws of the State of California and authorized to act as a surety in the State of California (“Surety”), are held and firmly bound unto the City of Escondido, a California municipal corporation (“City”) in the penal sum of [spell out amount ] ([$Dollar Amount]), lawful money of the United States of America, for the payment of which sum well and truly to be made, we bind ourselves, our heirs, successors, executors , and administrators, jointly and severally, firmly by these presents.

THE CONDITION of this obligation is such that if the Principal, or its heirs, executors, administrators, successors, or assigns, shall in all things stand to and abide by, and well and truly keep and perform the covenants, conditions, and provisions in the Agreement and any alteration thereof made as therein provided, on its part, to be kept and performed at the time and in the manner therein specified, and in all respects according to their true intent and meaning, and shall indemnify and save harmless the City, its officers, agents, and employees, as therein stipulated, then this obligation shall become null and void; otherwise, it shall be and remain in full force and effect.

As a part of the obligation secured hereby and in addition to the face amount specified therefor, there shall be included costs and reasonable expenses and fees, including reasonable attorney's fees, incurred by the City in successfully enforcing such obligation, all to be taxed as costs and included in any judgment rendered.

The Surety hereby stipulates and agrees that no change, extension of time, alteration, or addition to the terms of the Agreement or to the work to be performed thereunder or the specifications accompanying the same shall in any manner affect its obligations on this bond, and the Surety hereby waives notice of any such change, extension of time, alteration, or addition to the terms of the Agreement or to the work or to the specifications.

Resolution No. 2022-56
Exhibit A

29 Item5.

City of Escondido
Citracado Parkway Project
Faithful Performance Bond -2- CAO: 1/22/2021

IN WITNESS WHEREOF, this instrument has been duly executed by the P rincipal and Surety above named, as of this ________ day of __________________, 20__.

Flatiron West, Inc., a Delaware corporation
_________________________________
Name of Principal

12121 Scripps Summit Drive, Suite 400
San Diego, CA, 92131
_________________________________
Address of Principal

By: __________________________________________
Signature of Person Signing on Behalf of Principal

__________________________________________
Name of Person Signing on Behalf of Principal

__________________________________________
Title of Person Signing on Behalf of Principal

_________________________________
Name of Surety

_________________________________
Address of Surety

By: __________________________________________
Signature of Person Signing on Behalf of Surety

__________________________________________
Name of Person Signing on Behalf of Surety

__________________________________________
Title of Person Signing on Behalf of Surety

(ACKNOWLEDGMENTS OF EXECUTION BY PRINCIPALS AND SURETY MUST BE ATTACHED.)

APPROVED AS TO FORM:

OFFICE OF THE CITY ATTORNEY
MICHAEL R. MCGUINNESS, City Attorney

BY: _____________________________

Resolution No. 2022-56
Exhibit A

30 Item5.

City of Escondido
Citracado Parkway Project
Labor and Materials Bond -1- CAO: 01/22/21
Bond No.: _______________
Premium: _______________
L

ABOR AND MATERIALS BOND
KN

OW ALL BY THESE PRESENTS,
W
HEREAS, The City Council of the City of Escondido, State of California, and Flatiron West, Inc. , a Delaware corporation (“Principal”), have entered into that certain Public Improvement Agreement dated ______________ (“Agreement,” hereby referred to and made a part hereof), whereby Principal has agreed to install and complete certain designated public improvements associated with the Citracado Parkway, Andreasen Drive to West Valley Parkway Project.

W
HEREAS, under the terms of the A greement, the Principal is required before entering upon the performance of the work, to file a good and sufficient payment bond with the City of Escondido, a California municipal corporation (“City”), to secure the claims to which reference is made in Title 3 (commencing with Section 9000) of Part 6 of Division 4 of the Civil Code.

N
OW, THEREFORE, the Principal and __________, a ______________ organized and existing under the laws of the State of California and authorized to act as a surety in the State of California (“Surety”), are held firmly bound unto the City and all contractors, subcontractors, laborers, material suppliers, and other persons employed in the performance of the A greement and referred to in Title 3 (commencing with Section 9000) of Part 6 of Division 4 of the Civil Code in the sum of [spell out amount] ([$Dollar Amount]), lawful money of the United States of America, for materials furnished or labor thereon of any kind, or for amounts due under the Unemployment Insurance Act with respect to this work or labor, that the S urety will pay the same in an amount not exceeding the amount hereinabove set forth, and also in case suit is brought upon this bond, will pay, in addition to the face amount thereof, costs and reasonable expenses and fees, including reasonable attorney's fees, incurred by the City in successfully enforcing this obligation, to be awarded and fixed by th e court, and to be taxed as costs and to be included in the judgment therein rendered.

I
t is hereby expressly stipulated and agreed that this bond shall inure to the benefit of any and all persons, companies, and corporations entitled to file claims under Title 3 (commencing with Section 9000) of Part 6 of Division 4 of the Civil Code, so as to give a right of action to them or their assigns in any suit brought upon this bond.

If t
he condition of this bond is fully performed, then this obligation shall become null and void; otherwise, it shall be and remain in full force and effect.

T
he Surety hereby stipulates and agrees that no change, extension of time, alteration, or addition to the terms of the Agreement or to the work to be performed thereunder or the Resolution No. 2022-56
Exhibit A

31 Item5.

City of Escondido
Citracado Parkway Project
Labor and Materials Bond -2- CAO: 01/22/21
specifications accompanying the same shall in any manner affect its obligations on this bond, and it does hereby waive notice of any such change, extension of time, alteration or addition.

I
N WITNESS WHEREOF, this instrument has been duly executed by the Principal and Surety above named, as of this ______ day of ______________, 20__.

F
latiron West, Inc., a Delaware corporation
_________________________________
Name of Principal
1212
1 Scripps Summit Drive, Suite 400
San Diego, CA, 92131
_________________________________
Address of Principal
By: __________________________________________
Signature of Person Signing on Behalf of Principal
____
______________________________________
Name of Person Signing on Behalf of Principal
____
______________________________________
Title of Person Signing on Behalf of Principal
_________________________________
Name of Surety
____
_____________________________
Address of Surety
By: __________________________________________
Signature of Person Signing on Behalf of Surety
____
______________________________________
Name of Person Signing on Behalf of Surety
____
______________________________________
Title of Person Signing on Behalf of Surety
(ACKNOWLEDGMENTS OF EXECUTION BY PRINCIPALS AND SURETY MUST BE ATTACHED.) APPROVED AS TO FORM:

OFFICE OF THE CITY ATTORNEY
MICHAEL R. MCGUINNESS, City Attorney
BY: __________________________
Resolution No. 2022-56
Exhibit A

32 Item5.

STAFF REPORT

May 11, 2022
File Number 0470-20

SUBJECT

EMERGENCY DISPATCH EQUIPMENT PURCHASE

DEPARTMENT

POLICE DEPARTMENT

RECOMMENDATION
Request the City Council adopt Resolution No. 2022-49 authorizing the Escondido Police Department to purchase hardware, software, and installation services through approved sole source acquisition from Motorola Solutions, Inc. (“Motorola Solutions”). This purchase will provide a required upgrade to the City of Escondido’s (“City”) emergency dispatch services. The upgrade includes interoperable two-way radio products which will enhance officer and community safety.

Staff Recommendation: Approval (Police Department: Edward Varso) Presenter: Edward Varso, Chief of Police

FISCAL ANALYSIS
This action will have no impact on the General Fund Budget. Funds allocated to the City will be used to cover mandatory updates for dispatch equipment.

PREVIOUS ACTION
On July 11, 2018, the City Council adopted Resolution No. 2018-118 authorizing the Mayor and City Clerk to execute a Public Service Agreement (PSA) between the City and Motorola Solutions, and authorize d the Escondido Police Department to utilize County Contract #553982, to purchase up graded equipment for the Dispatch Communications Center.

BACKGROUND
The Escondido Police Department Communication Center has 11 workstations . Seven of the 11 workstations are RCS P25 MCC 7500 consoles. Four workstations need to be upgraded. The consoles will be purchased with Council-approved American Rescue Plan Funds allocated for Dispatch Center upgrades.

It is requested that the City Council approve the purchase of the consoles for $288,951 from Motorola Solutions utilizing an existing contract approved by the San Diego County Board of Supervisors. Motorola Solutions submitted a countywide comprehensive request for proposal to upgrade all Regional 43 Item6.

Communication System (“RCS”) equipment. All San Diego County RCS equipment meets the standards to ensure interoperability.

The City Council’s action to adopt Resolution No. 2022-49 and authorize the Escondido Police Department to purchase hardware, software, and installation services through approved sole source acquisition from Motorola Solutions will enhance community safety by adding four upgraded Dispatch workstations.

RESOLUTIONS
A. Resolution No. 2022-49
B. Resolution No. 2022-49 Exhibit “A” Public Services Agreement with Motorola Solutions, Inc.

44 Item6.

RESOLUTION NO. 2022-49

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ESCONDIDO, CALIFORNIA, AUTHORIZING THE MAYOR

TO EXECUTE, ON BEHALF OF THE CITY, AN AGREEMENT

TO PURCHASE HARDWARE, SOFTWARE, AND

INSTALLATION SERVICES THROUGH AN APPROVED

SOLE SOURCE ACQUISITION FROM MOTOROLA,
SOLUTIONS, INC IN THE AMOUNT OF $288,951

WHEREAS the City of Escondido desires to purchase emergency dispatch equipment; and WHEREAS Motorola Solutions, Inc. is an approved sole source vendor to provide Dispatch Consoles for interoperability throughout the county; and WHEREAS the Escondido Police Department Dispatch Center currently has 11 workstations.

Seven of the 11 consoles are Motorola RCS P25 MCC 7500; and WHEREAS the Escondido Police Department is requesting to upgrade four of the existing workstations with Motorola RCS P25 MCC 7500E; and
WHEREAS, the emergency dispatch equipment purchase will be funded from funds made available through the American Rescue Plan Funds in the amount of $288,951.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Escondido, California:

1. That the above recitations are true.

2. That the selection of the vendor as a sole source is consistent with Escondido Municipal Code Sections 10-91 and 10-102(b) and (d)
35 Item6.

3. That the City Council authorizes the City of Escondido to purchase the necessary Dispatch Consoles, and execute all documents necessary for the management and completion of the scope, including any extensions and amendments thereof.

4. That the City Council authorizes the Mayor to execute, on behalf of the City, the Public Services Agreement with Motorola Solutions, Inc., in substantially the same format as Exhibit “A” which is attached hereto and incorporated by this reference, subject to final approval as to form by the City Attorney.

36 Item6.

Public Services Agreement (v2) - 1 - CAO: 9/17/2021

CITY OF ESCONDIDO

PUBLIC SERVICES AGREEMENT
This Public Services Agreement (“Agreement”) is made and entered into as of this _____ day of _______________, 2022 (“Effective Date”),
Between: CITY OF ESCONDIDO
a California municipal corporation
201 N. Broadway
Escondido, CA 92025
Attn: Jody Patt
760-839-4709
("CITY")
And: Motorola Solutions, Inc.
a Delaware corporation
500 W. Monroe St.

Chicago, IL 60661-3781
Attn: Andy Grimm
858-864-3660
("CONTRACTOR").
(The CITY and CONTRACTOR each may be referred to herein as a “Party” and collectively as the “Parties.”)
WHEREAS, the Parties desire to enter into this Agreement for the performance of the Services described herein.

NOW, THEREFORE, in consideration of the mutual covenants, promises, terms, and conditions set forth herein, and the mutual benefits derived therefrom, the Parties hereby agree as follows:

1. Description of Services. CONTRACTOR shall furnish all of the Services described in the Scope of Work, which is attached to this Agreement as Attachment “A” and incorporated herein by this reference (“Services”).

2. Compensation. In exchange for CONTRACTOR’s completion of the Services, the CITY shall pay, and CONTRACTOR sha ll accept in full, an amount not to exceed the sum of $288,951 CONTRACTOR shall be compensated only for performance of the Services described in this Agreement. No compensation shall be provided for any other work or services withou t the CITY’s prior written consent. If this Agreement is amended at any time, additional compensation of CONTRACTOR contained in any subsequent amendments shall not exceed a cumulative total of 25% of the maximum payment provided for in this Section 2, unless approved by resolution of the City Council.

Resolution No. 2022-49
Exhibit "A"

37 Item6.

Public Services Agreement (v2) - 2 - CAO: 9/17/2021

3. Performance. CONTRACTOR shall faithfully perform the Services in a proficient manner, to the satisfaction of the CITY, and in accord with the terms of this Agreement. CONTRACTOR shall be responsible for the professional quality, technical accuracy, timely completion, and coordination of all reports and other information furnished by CONTRACTOR pursuant to this Agreement, except that CONTRACTOR shall not be responsible for the accuracy of information supplied by the CITY.

4. Termination. The Parties may mutually terminate this Agreement through a writing signed by both Parties. The CITY may terminate this Agreement for any reason upon providing CONTRACTOR with 10 days’ advance written notice. CONTRACTOR agrees to cease all work under this Agreement on or before the effective date of any notice of termination. If the CITY terminates this Agreement due to no fault or failure of performance by CONTRACTOR, then CONTRACTOR shall be compensated based on the work satisfactorily performed at the time of such termination. In no event shall CONTRACTOR be entitled to receive more than the amount that would be paid to CONTRACTOR for the full performance of the Services.

5. City Property. All original documents, drawings, electronic media, and other materials prepared by CONTRACTOR pursuant to this Agreement immediately become the exclusive property of the CITY, and shall not be used by CONTRACTOR for any other purpose without the CITY’s prior written consent.

6. Insurance Requirements.
a. CONTRACTOR shall pro cure and maintain , at its own cost, during the entire term of this Agreement, insurance against claims for injuries to persons or damages to property that may arise from or in connection with the performance of the Services, and the results of such work, by CONTRACTOR, its agents, representatives, employees, or subcontractors. Insurance coverage shall be at least as broad as the following:
(1) Commercial General Liability. Insurance Services Office (“ISO”) Form CG 00 01 covering Commercial General Liability on an “occurrence” basis, including products and completed operations, property damage, b odily injury, and personal & advertising injury, with limits no less than $2,000,000 per occurrence and $4,000,000 general aggregate. (2) Automobile Liability. ISO Form CA 00 01 covering any auto (Code 1), or if CONTRACTOR has no owned autos, hired (Code 8) and non -owned autos (Code 9), with limit s no less than $1,000,000 per accident for bodily injury and property damage, unless waived by the CITY and approved in writing by the CITY’s Risk and Safety Division. (3) Workers’ Compensation. Worker's Compensation as required by the State of California, with Statutory Limits, and Employer’s Liability Insurance with limit s of no less than $1,000,000 per accident for bodily injury or disease.
(4) If CONTRACTOR maintains broader coverage and/ or higher limits than the minimums otherwise required by this Agreement , the CITY requires and shall be entit led to the broader coverage and/or the higher limits maintained by CONTRACTOR. b. Each insurance policy required by this Agreement must be acceptable to the City Attorney and shall meet the following requirements:
(1) Acceptability of Insurers. Insurance coverage must be provided by an insurer authorized to conduct business in the state of California with a current A.M. Best’s rating of no less than A-: FSC VII, or as approved by the CITY.
(2) Additional Insured Status . Both the Commercial General Liability and the Automobile Liability policies must name the CITY (including its officials, officers, agents, employees, and volunteers) specifically as an additional insured under the policy on a separate endorsement page. The Commercial General Liability additional insured endorsement shall be at least as broad as ISO Form CG 20 10 11 85, or if not available, through the Resolution No. 2022-49
Exhibit "A"

38 Item6.

Public Services Agreement (v2) - 3 - CAO: 9/17/2021
addition of both CG 20 10, CG 20 26, CG 20 33, or CG 20 38, and CG 20 37 if a later edition is used. The Automobil e Liability endorsement shall be at least as broad as ISO Form CA 20 01.
(3) Primary Coverage. CONTRACTOR’s insurance coverage shall be primary coverage at least as broad as ISO CG 20 01 04 13 with respect to the CITY, its officials, officers, agents, employees, and volunteers. Any insurance or self -insurance maintained by the CITY, its officials, officers, agents, employees, or volunteers shall be in excess of CONTRACTOR’s insurance and shall not contribute with it. (4) Notice of Cancellation . Each insurance policy shall provide that coverage shall not be canceled, except with prior written notice to the CITY. (5) Subcontractors. If applicable, CONTRACTOR shall r equire and verify that all subcontractors maintain insurance meeting all the requirements stated in this Agreement, and CONTRACTOR shall ensure that the CITY (including its officials, officers, agents, employees, and volunteers) is an additional insured on any insurance required from a subcontractor.
(6) Waiver of Subrogation. CONTRACTOR hereby grants to the CITY a waiver of any right to subrogation that any insurer of CONTRACTOR may acquire against the CITY by virtue of the payment of any loss under such insurance. CONTRACTOR agrees to obtain any endorsement that may be nec essary to affect this waiver of subrogation, but this subsection shall apply regardless of whether or not the CITY has received a waiver of subrogation endorsement from the insurer. Any Workers’ Compensation policy required by this Agreement shall be endorsed with a waiver of subrogation in favor of the CITY for all work performed by the CONTRACTOR, its agents, representatives, employees and subcontractors.
(7) Self-Insurance. CONTRACTOR may, with the CITY’s prior written consent, fulfill some or all of the i nsurance requirements contained in this Agreement under a plan of self - insurance. CONTRACTOR shall only be permitted to utilize such self -insurance if, in the opinion of the CITY, CONTRACTOR’s (i) net worth and (ii) reserves for payment of claims of liability against CONTRACTOR are sufficient to adequately compensate for the lack of other insurance coverage required by this Agreement. CONTRACTOR’s utilization of self- insurance shall not in any way limit the liabilities assumed by CONTRACTOR pursuant to this Agreement.
(8) Self-Insured Retentions. Self-insured retentions must be declared to and approved by the CITY.
c. Verification of Coverage. At the time CONTRACTOR executes this Agreement, CONTRACTOR shall provide the CITY with original Certificates of Insu rance including all required amendatory endorsements (or copies of the applicable policy language effecting the insurance coverage required by this Agreement), which shall meet all requirements under this Agreement. The CITY reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by this Agreement, at any time. d. Special Risks or Circumstances. The CITY reserves the right , at any point during the term of this Agreement, to modify the insurance requirements in this Agreement, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances. e. No Limitation of Obligations. The insurance requirements in this Agreement, including the types and limits of insurance coverage CONTRACTOR must maintain, and any approval of such insurance by the CITY, are not intended to and shall not in any manner limit or qualify the liabilities and obligations otherwise assumed by CONTRACTOR pursuant to this Agreement, including but not limited to any provisions in this Agreement concerning indemnification. f. Failure to comply with any of the insurance requirements in this Agreement, including but not limited to a lapse in any required insurance coverage during the term of this Agreement, shall be a material breach of this Agreement . In the event that CONTRACTOR fails to comply with Resolution No. 2022-49
Exhibit "A"

39 Item6.

Public Services Agreement (v2) - 4 - CAO: 9/17/2021
any such insurance requirements in this Agreement, in addition to any other remedies the CITY may have, the CITY may, at its sole option, (i) immediately terminate this Agreement; or (ii) order CONTRACTOR to stop work under this Agreement and/or withhold any payment that becomes due to CONTRACTOR until CONTRACTOR demonstrates compliance with the insurance requirements in this Agreement.

7. Indemnification, Duty to Defend, and Hold Harmless.
a. CONTRACTOR (including CONTRACTOR’s agents, employees, and subcontractors, if any) shall indemnify, defend, and hold harmless the CITY, its officials, officers, agents, employees, and volunteers from and against any and all claims, demands, actions, causes of action, proceedings (including but not limited to legal and administrative proceedings of any kind), suits, fines, penalt ies, judgments, orders, levies, costs, expenses, liabilities, losses, damages, or injuries, in law or equity, including without limitation the payment of all consequential damages and attorney’s fees and other related litigation costs and expenses (collect ively, “Claims”), of every nature caused by, arising out of, or in connection with CONTRACTOR’s performance of the Services or its failure to comply with any of its obligations contained in this Agreement, except where caused by the sole negligence or willful misconduct of the CITY. b. CONTRACTOR (including CONTRACTOR’s agents, employees, and subcontractors, if any) shall defend, indemnify, and hold harmless the CITY, its officials, officers, agents, employees, and volunteers from and against any and all Claims caused by, arising under, or resulting from any violation, or claim of violation, of the San Diego Municipal Storm Water Permit (Order No.

R9-2013-0001, as amended) of the California Regional Water Quality Control Board, Region 9, San Diego, that the CITY might suffer, incur, or become subject to by reason of, or occurring as a result of, or allegedly caused by, any work performed pursuant to this Agreement. c. All terms and provisions within this Section 7 shall survive the termination of this Agreement.

8. Anti-Assignment Clause. Because the CITY has relied on the particular skills of CONTRACTOR in entering into this Agreement, CONTRACTOR shall not assign, delegate, subcontract, or otherwise transfer any duty or right under this Agreement, including as to any portion of the Services, without the CITY’s prior written consent. Any purported assignment, delegation, subcontract, or other transfer made without the CITY’s consent shall be void and ineffective. Unless CONTRACTOR assigns this entire Agreement, including all rights and duties herein, to a third party with the CITY’s prior written consent, CONTRACTOR shall be the sole payee under this Agreement. Any and all payments made pursuant to the terms of this Agreement are otherwise not assignable.

9. Attorney's Fees and Costs. In any action to enforce the terms and conditions of this Ag reement, the prevailing Party shall be entitled to reasonable attorney’s fees and costs.

10. Independent Contractor . CONTRACTOR is an independent contractor , and no agency or employment relationship is created by the execution of this Agreement.

11. Amendment. This Agreement shall not be amended except in a writing signed by the CITY and CONTRACTOR.

12. Merger Clause. This Agreement, together with its attachments or other documents described or incorporated herein, if any, constitutes the entire agreement and understanding of the CITY and CONTRACTOR concerning the subject of this A greement and supersedes and replaces all prior negotiations, understandings, or proposed agreements, wri tten or oral, except as otherwise provided herein. In the event of any conflict between the provisions of this Agreement and any of its attachments or related documents, if any, the provisions of this Agreement shall prevail.

Resolution No. 2022-49
Exhibit "A"

40 Item6.

Public Services Agreement (v2) - 5 - CAO: 9/17/2021

13. Anti-Waiver Clause. None of the provisions of this Agreement shall be waived by the CITY because of previous failure to insist upon strict performance, nor shall any provision be waived because any other provision has been waived by the CITY, in whole or in part.

14. Severability. This Agreement shall be performed and shall be enforceable to the full extent allowed by applicable law, and the illegality, invalidity, waiver, or unenforceability of any provision of this Agreement shall not affect the legality, validity, applicability, or enforceability of the remaining provisions of this Agreement.

15. Governing Law. This Agreement and all rights and obligations arising out of it shall be construed in accordance with the laws of the State of California. Venue for any action arising from this Agreement shall be conducted only in the state or federal courts of San Diego County, California.

16. Counterparts. This Agreement may be executed on separate counterparts, each of which shall be an original and all of which taken together shall constitute one and the same instrument. Delivery of an executed signature page of this Agreement by electronic means, including an attachment to an email, shall be effective as delivery of an executed original. The Agreement on file with the City is the copy of the Agreement that shall take precedence if any differences exist between or among copies or counterparts of the Agreement.

17. Provisions Cumulative . The foregoing provisions are cumulative to, in addition to , and not in limitation of any other rights or remedies available to the CITY.

18. Notice. Any statements, communications , or notices to be provided pursuant to this Agreement shall be sent to the attention of the persons indicated herein, and the CITY and CON TRACTOR shall promptly provide the other Party with notice of any changes to such contact information.

19. Business License. CONTRACTOR shall obtain a City of Escondido Business License prior to execution of this Agreement and shall maintain such Business License throughout the term of this Agreement.

20. Compliance with Laws, Permits, and Licenses. CONTRACTOR shall keep itself informed of and comply with all applicable federal, state, and local laws, statutes, codes, ordinance s, regulations, rules, and other legal requirements in effect during the term of this A greement. CONTRACTOR shall obtain any and all permits, licenses, and other authorizations necessary to perform the Services. Neither the CITY, nor any elected or appointed boards, officers, officials, employees, or agents of the CITY, shall be liable, at law or in equity, as a result of any failure of CONTRA CTOR to comply with this section.

21. Prevailing Wages . If applicable, pursuant to California Labor Code section 1770 et seq. , CONTRACTOR agrees that a prevailing rate and scale of wages, in accordance with applicable laws, shall be paid in performing this Agreement. CONTRACTOR shall keep itself informed of and comply with all applicable federal, state, and local laws, statutes , codes, ordinances, regulations, rules, and other legal requirements pertaining to the payment of prevailing wages. The prevailing rate and scale to be paid shall be the same as t he applicable “General Prevailing Wage Determination” approved by the Department of Industrial Relations as of the Effective Date of this Agreement, which are available online at http://www.dir.ca.gov/oprl/dprewagedetermination.htm and incorporated into this Agreement by this reference . Neither the CITY, nor any elected or appointed boards, officers, officials, employees, or agents of the CITY, shall be liable, at law or in equity, as a result of any failure of CONTRACTOR to comply with this section.

22. Department of Industrial Relations Compliance . This public project is subject to compliance monitoring and enforcement by the Department of Industrial Relations. CONTRACTOR shall post all job site notices required by regulation. CONTRACTOR, as well as any subcontractors, shall be registered pursuant to California Labor Code section 1725.5 to be qualified to bid on, be listed in a bid proposal (subject to the requirements of Public Contract Code section 4104), or engage in the Resolution No. 2022-49
Exhibit "A"

41 Item6.

Public Services Agreement (v2) - 6 - CAO: 9/17/2021
performance of any public works contract subject to the requirements of Division 2, Part 7, Chapter 1 of the California Labor Code. Neither the CITY, nor any elected or appointed boards, officers, officials, employees, or agents of the CITY, shall be liable, at law or in equity, as a result of any failure of CONTRACTOR to comply with this section.

23. Immigration Reform and Control Act of 1986. CONTRACTOR shall keep itself informed of and shall comply with the Immigration Reform and Control Act of 1986 (“IRCA”). CONTRACTOR represents and warrants that all of its employees and the employees of any subcontractor retained by CONTRACTOR who perform any of the Services under this Agreement, are and will be authorized to perform the Services in full compliance with the IRCA. CONTRACTOR affirms that as a licensed contractor and employer in the State of California, all new employees must produce proof of eligibility to work in the United States within the first three days of employment and that only employees legally eligible to work in the United States will perform the Services. CONTRACTOR agrees to comply with the IRCA before commencing any Services, and continuously throughout the performance of the Services and the term of this Agreement.

24. Effective Date. Unless a different date is provided in this Agreement, the effective date of this Agreement shall be the latest date of execution set forth by the names of the signatories below.

IN WITNESS WHEREOF, th is Agreement is executed by the Parties or their duly authorized representatives as of the Effective Date:

CITY OF ESCONDIDO

Date: __________________ ___________________________________ Paul McNamara, Mayor

Motorola Solutions, Inc.

Date: __________________ ___________________________________ Signature

___________________________________
Name and Title (please print)

APPROVED AS TO FORM:

OFFICE OF THE CITY ATTORNEY
MICHAEL R. MCGUINNESS, CITY ATTORNEY

BY: __________________________

THE CITY OF ESCONDIDO DOES NOT DISCRIMINATE AGAINST QUALIFIED PERSONS WITH DISABILITIES.

Resolution No. 2022-49
Exhibit "A"

42 Item6.

STAFF REPORT

May 11, 2022
File Number 0600-10

SUBJECT

SCHOOL RESOURCE OFFICER AGREEMENT

DEPARTMENT
Police Department

RECOMMENDATION
Request the City Council adopt Ordinance No. 2022 -08, giving the Chief of Police authority to sign the School Resource Officer (“SRO”) Agreement and other related agreements on behalf of the City. The SRO program allows local schools, the Escondido Police Department, and the community to provide a safe learning environment for students and school staff. The SRO Agreement states that the City will provide one uniformed, regularly appointed, full-time peace officer for the Escondido Union School Districts at a cost of $136,500, which will be reimbursed by the school district.

Staff Recommendation: Approval (Police Department: Edward Varso) Presenter: Edward Varso, Chief of Police

FISCAL ANALYSIS
This action will have no impact on the General Fund Budget. The Escondido Union School District will be financially responsible for expenses related to the SRO performing the services described in the Agreement and Scope of Work.

PREVIOUS ACTION
The Escondido Police Department and the Escondido Union School District entered into an agreement on June 24, 2021 stating that the District would provide financial assistance for a School Resource Officer.

The district paid a lump sum payment for the SRO Cost.

BACKGROUND
This Agreement provides an SRO for schools in the Escondido Union School District. The SRO is, and at all times will be, an employee of the City. The SRO will, in addition to typical crime -related issues, have the following responsibilities:

A. Make presentations to the Schools as requested.
54 Item7.

B. Be the liaison for subject matter experts in specific fields of law enforcement for presentations.

C. Be the liaison of information with intelligence systems and intelligence units for the Schools.

D. Be the liaison of information to other police agencies including, but not limited to, school police agencies and agencies with school police officers.

E. Present information internally at the Escondido Police Department in the form of briefing training as well as individual ongoing information exchange.

F. Make court appearances on behalf of active cases.

G. Be a subject matter expert regarding events where students are impacted in any way.

The City Council’s action today to adopt Ordinance No. 2022-08 giving the Chief of Police authority to sign the School Resource Officer (SRO) Agreement and other agreements on behalf of the City, will enhance community safety.

ORDINANCES
A. Ordinance No. 2022-08

ATTACHMENTS
A. Attachment “1” – School Resource Officer Agreement

55 Item7.

ORDINANCE NO. 2022-08

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF

ESCONDIDO, CALIFORNIA, AUTHORIZING THE CHIEF OF

POLICE, ON BEHALF OF THE CITY OF ESCONDIDO, TO

ENTER INTO AND SIGN SCHOOL RESOURCE OFFICER

AGREEMENTS

The City Council of the City of Escondido, California does ordain as follows:

SECTION 1. The City Council makes the following findings:
a) Government Code Section 40602 requires that the Mayor shall sign all warrants drawn on the city treasurer, all written contracts and conveyances made or entered into by the city, and all instruments requiring the city seal, unless the legislative body has provided by ordinance that such instruments be signed by an officer other than the mayor.
b) In the interests of efficiency and in compliance with Government Code Section 40602, the City Council desires to authorize the Chief of Police to enter into and sign on behalf of the City, without the prior approval of the City Manager or City Council, all contracts for School Resource Officer services, including all accompanying documents necessary for implementation of such contracts, for a period of one year from the effective date of this ordinance.

SECTION 2: P roper notices of a public hearing have been given and public hearings have been held before the City Council on this issue.

SECTION 3. The City Council has duly reviewed and considered all evidence submitted at said hearing, including, without limitation:
a. Written information;
45 Item7.

b. Oral testimony from City staff, interested parties, and the public; c. The staff report, dated May 11, 2022, which along with its attachments is incorporated herein by this reference as though fully set forth herein; and d. Additional information submitted during the Public Hearing.

SECTION 4. Upon consideration of the written information, the staff report, all public testimony presented at the hearing held on this issue, this City Council authorizes the Chief of Police to enter into and sign on behalf of the City, without the prior approval of the City Manager or City Council, all contracts for School Resource Officer services, including all accompanying documents necessary for implementation of such contracts, for a period of one year from the effective date of this ordinance.

SECTION 5. SEVERABILITY. If any section, subsection sentence, clause, phrase, or portion of this ordinance is held invalid or unconstitutional for any reason by any court of competent jurisdiction, such portion shall be deemed a separate, distinct, and independent provision and such holding shall not affect the validity of the remaining portions.

SECTION 6. As of the effective date of this ordinance, all ordinances or parts of ordinances in conflict herewith are hereby repealed.

SECTION 7. The City Clerk is hereby directed to certify to the passage of this ordinance and to cause the same or a summary to be published one time within 15 days of its passage in a newspaper of general circulation for the City of Escondido.
46 Item7.

School Resource Officer Agreement - 1 - CAO: 5/28/2021

CITY OF ESCONDIDO

SCHOOL RESOURCE OFFICER AGREEMENT
This School Resource Officer Agreement (“Agreement”) is made and entered into as of this _____ day of _______________, 2022 (“Effective Date”),
Between: CITY OF ESCONDIDO
a California municipal corporation
201 N. Broadway
Escondido, CA 92025
Attn: Lisa Rodelo
760- 839-4905
("CITY")
And: Escondido Union School District
School Facilities Corporation
a California corporation
2310 Aldergrove Ave.

Escondido, CA 92029
Attn: Andrew McGuire
760-432-2127
("DISTRICT").
(The CITY and DISTRICT each may be referred to herein as a “Party” and collectively as the “Parties.”) WHEREAS, the Parties desire to create an atmosphere of cooperation toward the common goals of providing a safe learning environment for students and DISTRICT staff; WHEREAS, the Parties desire to promote positive relationships between DISTRICT students, CITY police, and the community;
WHEREAS, the Parties desire to enter into this Agreement for the performance of school resource officer (“SRO”) services described herein; and NOW, THEREFORE, in consideration of the mutual covenants and conditions set forth herein, the Parties agree as follows:

1. Description of Services. CITY shall furnish all of the SRO services described in the Scope of Work, which is attached to this Agreement as Attachment “A” and incorporated herein by this reference (“Services”).

2. SRO Cost. In exchange for CITY’s completion of the Services, the DISTRICT shall pay the CITY Attachment "1"
47 Item7.

School Resource Officer Agreement - 2 - CAO: 5/28/2021 $136,500 for actual costs of providing the Services (“SRO Cost”). The CITY shall be compensated only for actual costs of providing the Services described in this Agreement. No additional compensation shall be provided for any other work or services. a. The DISTRICT shall pay the SRO Cost as follows: One lump sum (100%) payment for the SRO Cost as specified in this Agreement upon receiving an invoice from the CITY. The CITY will submit the invoice for the SRO Cost for the term of this Agreement to the DISTRICT on or before November 1 for the following school year and be paid in full within 30 days. If the Agreement is terminated as provided herein, the CITY shall remit to the DISTRICT the proportional balance of any unused funds for that school year.
b. A failure to timely pay the CITY for the SRO Cost as billed shall relieve the CITY from providing the Services.

3. Performance. The CITY will provide one uniformed, regularly appointed, full-time peace officers to act as SRO s for the benefit and use by Escondido Union School District, Escondido Union High School District, Escondido Charter, Classical Academy, Calvin Christian School, Grace Lutheran, and Escondido Christian (collectively, “Schools”). Each SRO is, and at all times will be, an employee of the CITY.

a. SRO Responsibilities . Each SRO will, in addition to typical crime -related issues, have the following responsibilities:
(1) Make presentations to the Schools as requested;
(2) Be the liaison for subject matter experts in specific fields of law enforcement for presentations;
(3) Be the liaison of information with intelligence systems and intelligence units for the Schools; (4) Be the liaison of information to other police agencies, including but not limited to school police agencies and agencies with school police officers; (5) Present information internally at the Escondido Police Department in the form of briefing, and ongoing information exchange;
(6) Make court appearances on behalf of active cases; and (7) Be a subject matter expert regarding events where students are impacted in any way.

b. SRO Qualifications. The CITY will provide three SROs for the Schools. Each SRO shall meet the following qualifications:
(1) Must have completed probation;
(2) Must have obtained a basic P.O.S.T. certificate;
(3) Must have a minimum of two years sworn police experience; (4) Must be able to relate to youth in a positive manner; (5) Must possess the personal qualities necessary to be a positive role model; (6) Must have knowledge of all areas of law enforcement; (7) Must possess the personal qualities necessary to effectively work with school administrators and teachers; and
(8) Must be able to make effective presentations to students.

c. Schedules, Coverage, and Changes. The CITY, through the Escondido Police Department, will provide the appropriate SRO coverage at the times it determines are appropriate on all days during which the Schools are in session, provided that the CITY’s determination of the times for coverage will be ma de only after consultation with DISTRICT representatives. The CITY reserves the right to add, delete, or revise the schedule or location for the SRO when appropriate, provided that the CITY will meet and consult with DISTRICT representatives prior to any addition, deletion, or revision to any SRO schedule or location, and provided that no addition, deletion, or revision in SRO coverage shall be made without at least 90 days written Attachment "1"
48 Item7.

School Resource Officer Agreement - 3 - CAO: 5/28/2021 notice to the DISTRICT of the proposed action.

4. Termination. The Parties may mutually terminate this Agreement through a writing signed by both Parties. Either Party may terminate this Agreement for any reason upon providing the other Party with 60 days’ advance written notice. The Party receiving the 60 days’ advance written notice of termination agrees to cease all work under this Agreement on or before the effective date of any notice of termination.

5. Insurance Requirements.
a. DISTRICT shall procure and maintain, at its own cost, during the entire term of this Agreement, insurance against claims for injuries to persons or damages to property that may arise from or in connection with performance of the Services, including results of such Services by the CITY, its agents, representatives, employees, or subcontractors. Insurance coverage shall be at least as broad as the following:
(1) Commercial General Liability. Insurance Services Office (“ISO”) Form CG 00 01 covering Commercial General Liability on an “occurrence” basis, including products and completed operations, property damage, bodily injury, and personal & advertising injury, with limits no less than $2,000,000 per occurrence and $4,000,000 general aggregate. (2) Automobile Liability. ISO Form CA 00 01 covering any auto (Code 1), or if DISTRICT has no owned autos, hired (Code 8) and non -owned autos (Code 9), with limits no less than $1,000,000 per accident for bodily injury and property damage, unless waived by the CITY and approved in writing by the CITY’s Risk and Safety Division. (3) If DISTRICT maintains broader coverage and/or higher limits than the minimums otherwise required by this Agreement, the CITY requires and shall be entitled to the broader coverage and/or the higher limits maintained by DISTRICT. b. Each insurance policy required by this Agreement must be acceptable to the City Attorney and shall meet the following requirements:
(1) Acceptability of Insurers. Insurance coverage must be provided by an insurer authorized to conduct business in the state of California with a current A.M. Best’s rating of no less than A-: VII, or as approved by the CITY.
(2) Additional Insured Status . Both the Commercial General Liability and the Automobile Liability policies must name the CITY (including its officials, officers, agents, employees, and volunteers) specifically as an add itional insured under the policy on a separate endorsement page. The Commercial General Liability additional insured endorsement shall be at least as broad as ISO Form CG 20 10 11 85, or if not available, through the addition of both CG 20 10, CG 20 26, C G 20 33, or CG 20 38, and CG 20 37 if a later edition is used. The Automobile Liability endorsement shall be at least as broad as ISO Form CA 20 01.
(3) Primary Coverage. DISTRICT’s insurance coverage shall be primary coverage at least as broad as ISO CG 20 01 04 13 with respect to the CITY, its officials, officers, agents, employees, and volunteers. Any insurance or self -insurance maintained by the CITY, its officials, officers, agents, employees, or volunteers shall be in excess of DISTRICT’s insurance and shall not contribute with it.
(4) Notice of Cancellation . Each insurance policy shall provide that coverage shall not be canceled, except with prior written notice to the CITY. (5) Subcontractors. If applicable, DISTRICT shall require and verify that all subcontractors maintain insurance meeting all the requirements stated in this Agreement, and DISTRICT shall ensure that the CITY (including its officials, officers, agents, employees, and volunteers) is an additional insured on any insurance required from a subcontractor.

Attachment "1"
49 Item7.

School Resource Officer Agreement - 4 - CAO: 5/28/2021 (6) Waiver of Subrogation . DISTRICT hereby grants to the CITY a waiver of any right to subrogation that any insurer of DISTRICT may acquire against the CITY by virtue of the payment of any loss under such insurance. DISTRICT agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation, but this subsection shall apply regardless of whether or not the CITY has received a waiver of subrogation endorsement from the insurer. Any Workers’ Compensation policy required by this Agreement shall be endorsed with a waiver of subrogation in favor of the CITY for all work performed by the DISTRICT, its agents, representatives, employees and subcontractors. (7) Self-Insurance. DISTRICT may, with the CITY’s prior written consent, fulfill some or all of the insurance requirements contained in this Agreement under a plan of self -insurance.

DISTRICT shall only be permitted to utilize such self -insurance if, in the opinion of the CITY, DISTRICT’s (i) net worth and (ii) reserves for paym ent of claims of liability against DISTRICT’s are sufficient to adequately compensate for the lack of other insurance coverage required by this Agreement. DISTRICT’s utilization of self-insurance shall not in any way limit the liabilities assumed by DISTRICT pursuant to this Agreement. (8) Self-Insured Retentions. Self-insured retentions must be declared to and approved by the CITY.
c. Verification of Coverage . At the time DISTRICT executes this Agreement, DISTRICT shall provide the CITY with original Certific ates of Insurance including all required amendatory endorsements (or copies of the applicable policy language effecting the insurance coverage required by this Agreement), which shall meet all requirements under this Agreement. The CITY reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by this Agreement, at any time. d. Special Risks or Circumstances. The CITY reserves the right, at any point during the term of this Agreement, to modify the insurance requirements in this Agreement, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances. e. No Limitation of Obligations. The insurance requirements in this Agreement, including the types and limits of insurance coverage DISTRICT must maintain, and any approval of such insurance by the CITY, are not intended to and shall not in any manner limit or qualify the liabilities and obligations otherwise assumed by DISTRICT pursuant t o this Agreement, including but not limited to any provisions in this Agreement concerning indemnification. f. Failure to comply with any of the insurance requirements in this Agreement, including but not limited to a lapse in any required insurance coverage during the term of this Agreement, shall be a material breach of this Agreement. In the event that DISTRICT fails to comply with any such insurance requirements in this Agreement, in addition to any other remedies the CITY may have, the CITY may, at its s ole option, (i) immediately terminate this Agreement; or (ii) order DISTRICT to stop work under this Agreement and/or withhold any payment that becomes due to DISTRICT until DISTRICT demonstrates compliance with the insurance requirements in this Agreement.

6. Indemnification, Duty to Defend, and Hold Harmless . DISTRICT (including DISTRICT’s agents, employees, and subcontractors, if any) shall indemnify, defend, and hold harmless the CITY, its officials, officers, agents, employees, and volunteers from and against any and all claims, demands, actions, causes of action, proceedings (including but not limited to legal and administrative proceedings of any kind), suits, fines, penalties, judgments, orders, levies, costs, expenses, liabilities, losses, damages, or injuries, in law or equity, including without limitation the payment of all consequential damages and attorney’s fees and other related litigation costs and expenses (collectively, “Claims”), of every nature caused by, arising out of, or in connection wi th the CITY’s performance of the Services, except where caused by the sole negligence or willful misconduct of the CITY. All terms and provisions within this Section 6 shall survive the termination of this Agreement.

Attachment "1"
50 Item7.

School Resource Officer Agreement - 5 - CAO: 5/28/2021

7. Administrator of Agreement. This Agreement shall be administered on behalf of, and any notice desired or required to be sent to a party hereunder shall be addressed to:

For DISTRICT: Andrew McGuire
Assistant Superintendent of Business Services
Escondido Union School District
2310 Aldergrove Ave.

Escondido, CA 92029
Telephone: 760-432-2127
Fax: 760-432-6956

For CITY: Edward Varso
Chief of Police
Escondido Police Department
1163 N. Center City Parkway
Escondido, CA 92026
Telephone: 760-839-4706
Fax: 760-839-4921

8. Notice. All notices to be provided under this Agreement by either party to the other shall be in writing and given either by: (a) personal service; (b) U.S. Mail, mailed either by registered or certified mail, return receipt requested with postage prepaid; or (c) by facsimile with written and verbal confirmation obtained from the party to whom the notice is addressed. The addresses to which notices are to be provided are specified in Section 7 and may be changed by written notice given in accordance with the notice provisions of this section.

9. Board of Education Authorization. The DISTRICT shall approve this Agreement through action of its Board of Education.

10. Anti-Assignment Clause. DISTRICT shall not assign, delegate, subcontract, or otherwise transfer any duty or right under this Agreement, including as to any portion of the Services, without the CITY’s prior written consent. Any purported assignment, delegation, subcontract, or other transfer made without the CITY’s consent shall be void and ineffective.

11. Attorney's Fees and Costs . In any action to enforce the terms and conditions of this Agreement, the prevailing Party shall be entitled to reasonable attorney’s fees and costs.

12. Independent Contractor. No agency or employment relationship is created, expressly or impliedly, by the execution of this Agreement.

13. Amendment. This Agreement shall not be amended except in a writing signed by the CITY and DISTRICT.

14. Merger Clause. This Agreement, together with its attachments or other documents described or incorporated herein, if any, constitutes the entire agreement and understanding of the CITY and DISTRICT concerning the subject of this Agreement and supersedes and replaces all prior negotiations, understandings, or proposed agreements, written or oral, e xcept as otherwise provided herein. In the event of any conflict between the provisions of this Agreement and any of its attachments or related documents, if any, the provisions of this Agreement shall prevail.

15. Anti-Waiver Clause. None of the provisions of this Agreement shall be waived by the CITY because of previous failure to insist upon strict performance, nor shall any provision be waived because any other provision has been waived by the CITY, in whole or in part.

Attachment "1"
51 Item7.

School Resource Officer Agreement - 6 - CAO: 5/28/2021

16. Severability. This Agreement shall be performed and shall be enforceable to the full extent allowed by applicable law, and the illegality, invalidity, waiver, or unenforceability of any provision of this Agreement shall not affect the legality, validity, applicability, or enforceability of the remaining provisions of this Agreement.

17. Governing Law. This Agreement and all rights and obligations arising out of it shall be construed in accordance with the laws of the State of California. Venue for any action arising from this Agreement shall be conducted only in the state or federal courts of San Diego County, California.

18. Counterparts. This Agreement may be executed on separate counterparts, each of which shall be an original and all of which taken together shall constitute one and the same i nstrument. Delivery of an executed signature page of this Agreement by electronic means, including an attachment to an email, shall be effective as delivery of an executed original. The Agreement on file with the City is the copy of the Agreement that shall take precedence if any differences exist between or among copies or counterparts of the Agreement.

19. Provisions Cumulative . The foregoing provisions are cumulative to, in addition to, and not in limitation of any other rights or remedies available to the CITY.

20. Notice. Any statements, communications, or notices to be provided pursuant to this Agreement shall be sent to the attention of the persons indicated herein, and the CITY and DISTRICT shall promptly provide the other Party with notice of any changes to such contact information.

21. Compliance with Laws, Permits, and Licenses. DISTRICT shall keep itself informed of and comply with all applicable federal, state, and local laws, statutes, codes, ordinances, regulations, rules, and other legal requirements in effect during the term of this Agreement. Neither the CITY, nor any elected or appointed boards, officers, officials, employees, or agents of the CITY, shall be liable, at law or in equity, as a result of any failure of DISTRICT to comply with this section.

22. Effective Date. Unless a different date is provided in this Agreement, the effective date of this Agreement shall be the latest date of execution set forth by the names of the signatories below. (SIGNATURE PAGE FOLLOWS)

Attachment "1"
52 Item7.

School Resource Officer Agreement - 7 - CAO: 5/28/2021 IN WITNESS WHEREOF, this Agreement is executed by the Parties or their duly authorized representatives as of the Effective Date:

CITY OF ESCONDIDO

Date: __________________ ___________________________________ Edward Varso, Chief of Police

ESCONDIDO UNION SCHOOL DISTRICT

SCHOOL FACILITIES CORPORATION

Date: __________________ ___________________________________ Signature

___________________________________
Name & Title (please print)
APPROVED AS TO FORM:

OFFICE OF THE CITY ATTORNEY
MICHAEL R. MCGUINNESS, CITY ATTORNEY

BY: __________________________

THE CITY OF ESCONDIDO DOES NOT DISCRIMINATE AGAINST QUALIFIED PERSONS WITH DISABILI Attachment "1"
53 Item7.

STAFF REPORT

May 11, 2022
File Number 0490-55

SUBJECT
TREASURER’S INVESTMENT REPORT FOR THE QUARTER ENDED MARCH 31, 2022

DEPARTMENT
City Treasurer

RECOMMENDATION
Request the City Council receive and file the Quarterly Investment Report for the quarter ended March 31, 2022.

Staff Recommendation: Receive and File (City Treasurer: Douglas Shultz) Presenter: Douglas Shultz, City Treasurer

FISCAL ANALYSIS
From January 1, 2022 to March 31, 2022, the City’s investment portfolio decreased from $19 5.8 million to $194.2 million. The adjusted average annual yield decreased from 0.786 percent to 0.764 percent with the portfolio duration at 2. 49. An excess of cash paym ent outflows over cash receipt inflows for the quarter resulted in a decrease of $1.6 million in the book value of the investment portfolio.

PREVIOUS ACTION
The Investment Report for the quarter ended December 31, 2021, was filed with the City Clerk’s Office on January 25, 2022 and presented to the City Council on February 2, 2022.

BACKGROUND
The City of Escondido’s ( “City”) Investment Policy requires the City Treasurer to submit a quarterly investment report to the City Council and City Manager. The quarterly investment report should include the type of investment, issuer, date of maturity, par and dollar amount invested and market value for each security held by the City. Details of the City’s investment portfolio are included in the attached reports that are listed below:
• Summary of Investment Allocation as of March 31, 2022 (Attachment “1”) • Summary of Investment Portfolio Yield for the last 12 months (Attachment “2”) • Schedule of Funds Managed by Outside Parties as of March 31, 2022 (Attachment “3”) 56 Item8.

• PFM’s Investment Performance Review as of March 31, 2022 (Attachment “4”) PFM Asset Management Firm was onboarded as the City’s Investment Advisor in May 2019. In their Investment Performance Review ( Attachment “4”) you will find a Market Update, the City’s Portfolio Strategy and Performance, Issuer Distributions, Portfolio Distributions and Portfolio Holdings. The Summary of Investment Allocation ( Attachment “1”) and the Summary of Investment Portfolio Yield for the last 12 months (Attachment “2”) shows the total investment portfolio including funds in LAIF, CAMP, Stone Castle, and the City’s money market account with BNY.

There are adequate funds to meet the next six -month’s expected expenditures. As of March 31, 2022, the City complies with all requirements of the City’s Investment Policy.

ATTACHMENTS

1. Attachment “1” – Summary of Investment Allocation as of March 31, 2022

2. Attachment “2” – Summary of Investment Portfolio Yield for the last 12 months

3. Attachment “3” – Schedule of Funds Managed by Outside Parties as of March 31, 2022

4. Attachment “4” – Investment Performance Review for the Quarter Ended March 31, 2022 57 Item8.

Attachment "1"
Investment Type Market Value
State Investment Pool (LAIF) 32,579,871$ 32,579,871$ 17.19% State Investment Pool (LAIF)- ARPA Funds 17,922,880 17,922,880 9.46% California Asset Management Program (CAMP) 4,020,321 4,020,321 2.12% Placement Service Deposits (Stone Castle) 5,246,215 5,246,215 2.77% U.S. Treasury Obligations 70,163,119 67,395,985 35.56%
Federal Agency Securities 11,315,169 10,846,030 5.72%
Supranational Securities 6,206,752 6,007,954 3.17%
U.S. Corporate Bonds 27,254,780 26,593,730 14.03%
U.S. Municipal Bonds 9,518,171 9,125,057 4.81%
Negotiable Certificates of Deposit 3,330,000 3,330,512 1.76% Asset-Backed Security 6,454,815 6,276,180 3.31%
Money Market Account (BNY Blackrock) 183,903 183,903 0.10% Total Investment Portfolio - March 2022 194,195,996$ 189,528,638$ 100% Reported Total Investments - December 2021 195,823,371$ 195,665,399$ Change from Prior Quarter (1,627,375)$ (6,136,761)$ Portfolio Duration 2.49
City of Escondido
Summary of Investment Allocation
as of March 31, 2022
Book Value
Percent of
Portfolio at
Market
17%
9%
2%
3%
36%
6%
3%
14%
5% 2% 0%
Summary of Investment Allocation as of March 31, 2022
State Investment Pool (LAIF)
State Investment Pool (LAIF)- ARPA Funds
California Asset Management Program (CAMP)
Placement Service Deposits (Stone Castle)
U.S. Treasury Obligations
Federal Agency Securities
Supranational Securities
U.S. Corporate Bonds
U.S. Municipal Bonds
Negotiable Certificates of Deposit
Asset-Backed Security
Money Market Account (BNY Blackrock)
58 Item8.

Attachment "2"
Date Book Value Yield
Mar-22 $194,195,995.42 0.862%
Feb-22 $195,493,163.15 0.817%
Jan-22 $203,430,713.46 0.756%
Dec-21 $195,823,370.83 0.755%
Nov-21 $192,786,704.93 0.762%
Oct-21 $196,151,361.13 0.683%
Sep-21 $195,998,026.11 0.696%
Aug-21 $187,820,654.45 0.727%
Jul-21 $193,141,091.46 0.707%
Jun-21 $206,611,764.40 0.804%
May-21 $186,179,808.93 0.783%
Apr-21 $181,102,353.76 0.816%
Average Portfolio Interest Yields 0.764%
* Includes Assets managed by PFM, LAIF, and Stone Castle.

SUMMARY OF INVESTMENT PORTFOLIO YIELDS
FOR THE LAST 12 MONTHS
As of March 31, 2022
59 Item8.

Attachment 3

CITY OF ESCONDIDO

FUNDS MANAGED BY OUTSIDE PARTIES
As of March 31, 2022
Market Interest Type of
Type of Funds / Institution Value Rate Investment

BOND FUNDS
BANK OF NEW YORK:
1998-1 Rancho San Pasqual Assessment District 353,589.71$ 0.170% Treasury 2013 JPFA Reidy Creek Lease Revenue Bonds (2001 Refunding) 49,834.39 0.160% Treasury 2013 Community Facility District - Hidden Trails (2001 Refunding) 0.01 0.000% Treasury 2015 Community Facility District - Eureka Ranch (2006 Refunding) 113.79 0.000% Cash/Treasury 2015A Wastewater Bond (2004A Refunding) 640,019.20 0.200% Dreyfus Cash Management Fund 2015B Wastewater Bond (2004B Refunding) 237,507.15 0.200% Dreyfus Cash Management Fund 2019 Water Bond 5.23 0.000% Dreyfus Cash Management Fund 1,281,069.48$
SECTION 115 TRUST FUNDS
PUBLIC AGENCY RETIREMENT SERVICES:

PARS Post-Employment Benefits Trust $25,840,637.88 Moderately Conservative HighMark PLUS TOTAL FUNDS MANAGED BY OUTSIDE PARTIES $27,121,707.36
60 Item8.

Investment Performance Review
For the Quarter Ended March 31, 2022
Client Management Team PFM Asset Management LLC
Sarah Meacham, Managing Director
Meredith LaBuda Sullivan, Senior Portfolio Manager
Richard Babbe, CCM, Senior Managing Consultant
Jeremy King, Key Account Manager
213 Market Street
Harrisburg, PA 17101-2141
717-232-2723
633 W 5th St., 25th Floor
Los Angeles, CA 90071
213-415-1699
NOT FDIC INSURED : NO BANK GUARANTEE : MAY LOSE VALUE
For Institutional Investor or Investment Professional Use Only - This material is not for inspection by, distribution to, or quotation to the general public City of Escondido
61 Item8.
© PFM Asset Management LLC pfmam.com |
Market Update
62 Item8.

For the Quarter Ended March 31, 2022
Fixed Income Management QUARTERLY MARKET SUMMARY
Summary
► In Q1, U.S. economic conditions were characterized by: (1) persistent high inflation; (2) the Federal Reserve (Fed) kicking off a shift to tighter monetary policy; (3) rapidly rising interest rates; (4) elevated energy and commodity prices; (5) increased volatility and risk-off sentiment in credit and equity markets; (6) stronger than ever labor market.
► Just as Omicron’s potential to impact the economy waned, geopolitical tensions in Ukraine dominated headlines, applying further pressure to an already fragile inflation narrative. Simultaneously, the macro focus on economic growth and continued recovery shifted from elevated virus infections to surging consumer prices. The U.S.

Personal Consumption Expenditure Core Price Index, the Fed’s preferred inflation measure, rose to a nearly four-decade high of 5.4% on a year-on-year basis in February, while the headline Consumer Price Index increased 8.5% year-over-year through March.
► On the heels of rising consumer prices, geopolitical uncertainty stemming from Russia’s invasion of Ukraine has stoked risks for both hampering global economic growth and creating additional pressures on supply chains and commodity prices.

While the U.S. is largely insulated from the direct conflict, the global impact on energy prices is undeniable, as Russia produces about 12% of global crude oil supplies. Europe’s heavier dependence on Russian natural gas suggests that the EU’s economy may face stiffer headwinds, ultimately dampening global growth in 2022 and beyond.
► As a result of surging inflation that proved not to be transitory, the Fed raised the overnight federal funds target rate to 0.25% in March 2022 for the first time since December 2018, underscoring the risk that inflation now poses to economic growth and stability. The Fed also forecasts as many as six more rate hikes this year. In addition, the Fed will likely begin reducing its balance sheet through a reduction in the reinvestment of maturities and principal payments on its nearly nine trillion holdings of Treasuries and agency mortgage-backed securities.

Economic Snapshot
► Underneath the headlines, the American consumer remains in good standing with strong household balance sheets supporting consumer demand. The final reading for Q4 2021 GDP showed that the U.S. economy grew at an annualized growth rate of 6.9%. Given current conditions, economists forecast a large drop for Q1 2022 and more moderate growth for the year, around 3.2%. That path will depend, in part, on how well the economy can handle an aggressive series of rate hikes. ► The U.S. labor market remains a strength of the economy, adding 6.7 million new jobs in 2021 and another 1.7 million jobs in Q1. The unemployment rate returned to a pandemic-cycle low of 3.6%. At the same time, initial jobless claims fell to a 50-year low and 11.3 million jobs remain unfilled. Averaged 199,000 a week in December, figures that are firmly below the pre-pandemic average of 225,000. The labor force participation rate also improved steadily through the quarter, reaching a two-year high of 62.4.
► Manufacturing and services remained expansionary in Q1 and above five-year averages. On the housing front, sales of both new and existing homes remained strong and continued the decade-long improvement following the 2007-2008 housing crash. However, refinancing activity fell drastically in Q1 as mortgage rates increased noticeably, and more recent readings appear to be softening.

Interest Rates
► U.S. Treasury yields rose meaningfully in Q1 on surging inflation data and growing expectations for multiple Fed rate hikes in 2022. Given their maturity horizon, two- and three-year yields were most impacted by the increased probability of future rate hikes, with both tenors increasing over 150 basis points (1.50%) during the quarter.
► Ten-year yields, which are more influenced by inflation expectations than Fed policy, increased 83 basis points, resulting in a briefly inverted yield curve between three- and ten-year maturities, suggesting markets expect inflation levels to ease over the longer run. Fed policy remains on a rate-hiking trajectory for the foreseeable future.
► As a result of sharply higher Treasury yields, fixed income indices posted some of the worst total returns dating back over 40 years. For example, the ICE BofA 1-, 5- and 10-year U.S. Treasury indices returned -0.73%, -4.92% and -7.21%, respectively.

Sector Performance
► Diversification away from U.S. Treasury securities generally detracted from fixed- income performance during Q1 as no sector was immune from spread widening caused by risk-off sentiment during the quarter.
► Investment-grade (IG) corporate credit spreads widened to a two-year wide in mid-March before partially retreating into quarter-end. Despite the late quarter retracement, IG corporate spreads remained elevated from a post-pandemic perspective. As a result, the corporate sector underperformed Treasuries in Q1, with lower quality bonds like those rated BBB performing worst. On the other hand, spreads now look attractive, assuming strong underlying fundamentals persist and the economy avoids a recession.
► AAA-rated asset-backed securities (ABS) also experienced noticeable spread widening during Q1. However, contrary to the retracement experienced in IG corporates, ABS spreads remained relatively wide at quarter-end. The result was underperformance vs. duration-matched Treasuries and therefore negative excess returns from the sector regardless of collateral type (auto or credit card receivables). ► Mortgage-backed securities (MBS) continued their trend of underperformance as rate increases and volatility impacted the sector more than others. As the Fed embarks on their tightening cycle and the reduction of the balance sheet, MBS have felt pressure from the combination of higher rates, slower prepayments (and therefore duration extensions), and demand concerns with the removal of the Fed as the larger price-insensitive purchaser for the past two years. The result was significant negative excess returns from the sector and continuing concerns for the balance of 2022.

PFM Asset Management LLC | For Institutional Investor or Investment Professional Use Only – This material is not for inspection by, distribution to, or quotation to the general public. 1 63
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For the Quarter Ended March 31, 2022
Fixed Income Management QUARTERLY MARKET SUMMARY
Economic Snapshot
Labor Market Dec '21 Mar '21
Unemployment Rate Mar '22 3.6% 3.9% 6.0%
Change In Non-Farm Payrolls Mar '22 431,000 588,000 704,000 Average Hourly Earnings (YoY) Mar '22 5.6% 4.9% 4.4%
Personal Income (YoY) Feb '22 6.0% 7.6% 29.5%
Initial Jobless Claims (week) 4/2/22 166,000 224,000 658,000 Growth
Real GDP (QoQ SAAR) 2022 Q4 6.9% 2.3% 4.5%
GDP Personal Consumption (QoQ SAAR) 2022 Q4 2.5% 2.0% 3.4% Retail Sales (YoY) Feb '22 17.6% 16.6% 29.7%
ISM Manufacturing Survey (month) Mar '22 57.1 58.8 63.7 Existing Home Sales SAAR (month) Feb '22 6.02 mil. 6.09 mil. 6.04 mil.

Inflation/Prices
Personal Consumption Expenditures (YoY) Feb '22 6.4% 5.8% 2.5% Consumer Price Index (YoY) Mar '22 8.5% 7.0% 2.6%
Consumer Price Index Core (YoY) Mar '22 6.5% 5.5% 1.6%
Crude Oil Futures (WTI, per barrel) Mar 31 $100.28 $75.21 $59.16 Gold Futures (oz.) Mar 31 $1,949 $1,829 $1,714
Latest
25-000K
20-000K
15-000K
10-000K
5-000K
0 5,000K
10,000K

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%
Mar '19 Sep '19 Mar '20 Sep '20 Mar '21 Sep '21 Mar '22 Unemployment Rate (left) vs. Change in Non -Farm Payrolls (right) Change In Non-Farm Payrolls Unemployment Rate
- 40%
- 30%
- 20%
- 10%
0%
10%
20%
30%
40%
Dec '18 Jun '19 Dec '19 Jun '20 Dec '20 Jun '21 Dec '21 Real GDP (QoQ)
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
Mar '19 Sep '19 Mar '20 Sep '20 Mar '21 Sep '21 Mar '22 Consumer Price Index
CPI (YoY) Core CPI (YoY)
2 2
1 1

1. Data as of Third Quarter 2021.

2. Data as of Fourth Quarter 2020.

Note: YoY = year-over-year, QoQ = quarter-over-quarter, SAAR = seasonally adjusted annual rate, WTI = West Texas Intermediate crude oil.

Source: Bloomberg.

PFM Asset Management LLC | For Institutional Investor or Investment Professional Use Only – This material is not for inspection by, distribution to, or quotation to the general public. 2 64
Item8.

For the Quarter Ended March 31, 2022
Fixed Income Management QUARTERLY MARKET SUMMARY
Source: Bloomberg.

Interest Rate Overview
U.S. Treasury Note Yields U.S. Treasury Yield Curve
U.S. Treasury Yields Yield Curves as of 03/31/2022
0%
1%
2%
3%
3-mo
1-yr
2-yr
3-yr
5-yr
7-yr
10-yr
20-yr
30-yr
Yield
Maturity
March 31, 2022 December 31, 2021 March 31, 2021
0%
1%
2%
3%
4%
3-mo
1-yr
2-yr
3-yr
5-yr
0 7-yr
10-yr
25-yr
30-yr
Yield
Maturity
U.S. Treasury Federal Agency Corporates, A Rated

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%
3/31/21 6/30/21 9/30/21 12/31/21 3/31/22
Yield
2-Year 5-Year 10-Year
Maturity Mar '22 Dec '21 Change over
Quarter Mar '21 Change over
Year
3-Month 0.50% 0.04% 0.46% 0.02% 0.48%
1-Year 1.61% 0.38% 1.23% 0.06% 1.55%
2-Year 2.34% 0.73% 1.61% 0.16% 2.18%
5-Year 2.46% 1.26% 1.20% 0.94% 1.52%
10-Year 2.34% 1.51% 0.83% 1.74% 0.60%
30-Year 2.45% 1.90% 0.55% 2.41% 0.04%
PFM Asset Management LLC | For Institutional Investor or Investment Professional Use Only – This material is not for inspection by, distribution to, or quotation to the general public. 3 65
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For the Quarter Ended March 31, 2022
Fixed Income Management QUARTERLY MARKET SUMMARY
March 31, 2022 Duration Yield 3 Month 1 Year 3 Years
1-3 Year Indices
U.S. Treasury 1.86 2.22% (2.34%) (2.84%) 0.88%
Federal Agency 1.82 2.18% (2.28%) (2.68%) 0.79%
U.S. Corporates, A-AAA rated 1.90 2.66% (2.44%) (2.63%) 1.49% Agency MBS (0 to 3 years) 2.13 2.59% (3.48%) (4.88%) 0.55% Taxable Municipals 1.57 2.49% (1.93%) (0.86%) 2.39%
1-5 Year Indices
U.S. Treasury 2.61 2.32% (3.16%) (3.72%) 0.92%
Federal Agency 2.46 2.28% (3.08%) (3.49%) 0.64%
U.S. Corporates, A-AAA rated 2.77 2.86% (3.62%) (3.65%) 1.62% Agency MBS (0 to 5 years) 3.40 2.69% (3.79%) (4.52%) 0.63% Taxable Municipals 2.33 2.68% (3.10%) (2.80%) 1.62%
Master Indices (Maturities 1 Year or Greater)
U.S. Treasury 7.02 2.39% (5.56%) (3.35%) 1.47%
Federal Agency 3.91 2.39% (4.25%) (3.65%) 1.33%
U.S. Corporates, A-AAA rated 7.90 3.30% (7.27%) (4.04%) 2.56% Agency MBS (0 to 30 years) 5.15 3.00% (5.05%) (5.10%) 0.56% Taxable Municipals 10.46 3.55% (9.37%) (3.98%) 3.59%
Source: ICE BofAML Indices.

As of 03/31/2022 Returns for Periods ended 03/31/2022
Returns for periods greater than one year are annualized.

PFM Asset Management LLC | For Institutional Investor or Investment Professional Use Only – This material is not for inspection by, distribution to, or quotation to the general public.

ICE BofAML Index Returns
4 66
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For the Quarter Ended March 31, 2022
Fixed Income Management QUARTERLY MARKET SUMMARY
Disclosures
PFM Asset Management LLC (“PFMAM”) is an investment adviser registered with the U.S. Securities and Exchange Commission and a subsidiary of U.S. Bancorp Asset Management, Inc. (“USBAM”). USBAM is a subsidiary of U.S. Bank National Association (“U.S. Bank”). U.S. Bank is a separate entity and subsidiary of U.S. Bancorp. U.S.

Bank is not responsible for and does not guarantee the products, services or performance of PFMAM.

The views expressed within this material constitute the perspective and judgment of PFM Asset Management LLC at the time of distribution and are subject to change.

Information is obtained from sources generally believed to be reliable and available to the public; however, PFM Asset Management LLC cannot guarantee its accuracy, completeness, or suitability. The information contained in this report is not an offer to purchase or sell any securities.

NOT FDIC INSURED : NO BANK GUARANTEE : MAY LOSE VALUE
Further distribution is not permitted without prior written consent.

PFM Asset Management LLC | For Institutional Investor or Investment Professional Use Only – This material is not for inspection by, distribution to, or quotation to the general public. 5 67
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© PFM Asset Management LLC pfmam.com|
Portfolio Review
68 Item8.
© PFM Asset Management LLC pfmam.com

CITY OF ESCONDIDO
For the Quarter Ended March 31, 2022
Portfolio Snapshot
|
Yield and duration calculations exclude cash and cash equivalents. Sector allocation includes market values and accrued interests.

The portfolio’s benchmark is the ICE BofAML 1-5 Year U.S. Treasury Index. Source: Bloomberg.

An average of each security’s credit rating was assigned a numeric value and adjusted for its relative weighting in the portfolio.

1. Portfolio Snapshot¹
Credit Quality - S&P
6%
34%
25% 23%
13%
5%
34%
28%
19%
14%
0%
5%
10%
15%
20%
25%
30%
35%
0-1 Yr 1-2 Yrs 2-3 Yrs 3-4 Yrs 4-5 Yrs
Portfolio Benchmark
Duration Distribution
U.S. Treasury | 52%
Corporate | 21%
Municipal | 7%
Federal Agency | 7%
ABS | 5%
Supranational | 5%
Negotiable CD | 2%
Agency CMBS | 1%
FDIC CD | 1%
Sector Allocation
AAA | 10%
AA+ | 62%
AA | 3%
AA- | 1%
A-1+ | 1%
A+ | 3%
A | 5%
A- | 6%
A-1 | 1%
BBB+ | 4%
Not Rated | 3%
Portfolio Statistics
Portfolio Effective Duration 2. 49 years
Benchmark Effective Duration 2.54 years
Portfolio Credit Quality AA
Yield At Market 2.37%
Yield At Cost 1.10%
Total Market Value $130,135,054.13
$129,575,417.96Securities Sub-Total
$183,903.21Cash
$375,732.96Accrued Interest
6 69
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© PFM Asset Management LLC pfmam.com

CITY OF ESCONDIDO
For the Quarter Ended March 31, 2022
Account Summary
|

4.8%

20.6%

1.8%

0.8%

7.0%

4.6%

1.3%

7.0%

52.0%

0.0% 20.0% 40.0% 60.0% 80.0% 100.0%
U.S. Treasury - $67,395,985
Federal Agency - $9,107,364
Agency CMBS - $1,738,666
Supranational - $6,007,954
Municipal - $9,125,057
FDIC CD - $986,417
Negotiable CD - $2,344,095
Corporate - $26,593,729
ABS - $6,276,150
Portfolio Allocation Sector Limit for Analysis*
Sector Allocation Analytics
For informational/analytical purposes only and is not provided for compliance assurance.

Market values excluding accrued interest.
*Sector Limit for Analysis is as derived from our interpretation of your most recent Investment Policy as provided. 7 70
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© PFM Asset Management LLC pfmam.com

CITY OF ESCONDIDO
For the Quarter Ended March 31, 2022
Compliance
|
Note: Pre- and post-trade compliance for the account(s) managed by PFM Asset Management is provided via Bloomberg Asset and Investment Management ("AIM").

Certificate of Compliance
During the reporting period for the quarter ended March 31, 2022, the account(s) managed by PFM Asset Management ("PFMAM") were in compliance with the applicable investment policy and guidelines as furnished to PFMAM.

Acknowledged :PFM Asset Management LLC
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CITY OF ESCONDIDO
For the Quarter Ended March 31, 2022
Portfolio Activity
|
Portfolio Activity
Net Activity by Sector
($ millions)
Federal Agency
Municipal
Agency CMBS
ABS
U.S. Treasury
Corporate
Federal Agency
Mu
nicipal
Agency CMBS
ABS
U.S. Treasury
Corporate
($6.0) ($4.0) ($2.0) $0.0 $2.0 $4.0 $6.0 $8.0
Based on total proceeds (principal and accrued interest) of buys, sells, maturities, and principal paydowns. Detail may not add to total due to rounding.

Sector Net Activity
Corporate $3,424,263
U.S. Treasury $1,605,906
ABS $1,160,342
Agency CMBS ($52,030)
Municipal ($436,272)
Federal Agency ($5,066,261)
$635,948Total Net Activity
Sales/Maturities Purchases
9 72
Item8.
© PFM Asset Management LLC pfmam.com

CITY OF ESCONDIDO
For the Quarter Ended March 31, 2022
Portfolio Characteristics
|
Historical Sector Allocation
Only includes investments held within the separately managed account(s), excludes cash held in funds not managed by PFMAM. 51%
11%
1%
5%
8%
1%
18%
4%
Dec-21
52%
7%
1%
5%
7%
2%
21%
5%
Mar-22
1%
2%
10 73
Item8.
© PFM Asset Management LLC pfmam.com

CITY OF ESCONDIDO
For the Quarter Ended March 31, 2022
Portfolio Performance
|
The lesser of 10 years or since inception is shown. Since inception returns for periods one year or less are not shown. Performance inception date is June 30, 2019.1.

Interest earned calculated as the ending accrued interest less beginning accrued interest, plus net interest activity.2.

Returns for periods one year or less are presented on a periodic basis. Returns for periods greater than one year are presented on an annualized basis.3.

The portfolio’s benchmark is the ICE BofAML 1-5 Year U.S. Treasury Index. Source: Bloomberg.4. -4.0%
-3.0%
-2.0%
-1.0%

0.0%

1.0%
Return
Portfolio Benchmark
Portfolio Performance
Market Value Basis Earnings 3 Months 1 Year 3 Years 5 Years Since Inception¹ Interest Earned² $44 1,169 $1,627,634 - - $4,725,318
Change in Market Value ($4,648,476) ($6,389,197) - - ($4,630,383) ($4,207,307)Total Dollar Return ($4,761,563) - - $94,935 Total Return³
Portfolio -3.13% -3.52% - - 0.71%
Benchmark⁴ -3.16% -3.72% - - 0.34%
3 Months 1 Year 3 Years 5 Years Since Inception
Difference 0.03% 0.20% - - 0.37%
11 74
Item8.
© PFM Asset Management LLC pfmam.com

CITY OF ESCONDIDO
For the Quarter Ended March 31, 2022
Portfolio Performance
|
Performance on trade-date basis, gross (i.e., before fees), in accordance with the CFA Institute’s Global Investment Performance Standards (GIPS).1.

Income returns calculated as interest earned on investments during the period.2.

Price returns calculated as the change in market value of each security for the period.3.

Returns are presented on a periodic basis.4.

Quarterly Sector Performance
Total Return by Sector Contr ibution to Total Return
Cash
ABS
Corporate
Commercial Paper
Negotiable CD

FDIC CD
Municipal
Supranational
Agency CMBS
Federal Agency
U.S. Treasury
-3.50%
-3.00%
-2.50%
-2.00%
-1.50%
-1.00%
-0.50%

0.00%

0.50%
U.S. Treasury | -1.75%
Federal Agency | -0.27%
Agency CMBS | -0.03%
Supranational | -0.11%
Municipal | -0.27%
FDIC CD | >-0.01%
Negotiable CD | -0.01%
Commercial Paper | <0.01%
Corporate | -0.60%
ABS | -0.10%
Cash | <0.01%
Price Returns Income Returns
Return

0.01%

0.17%

0.63%

0.00%

0.43%

0.50%

0.38%

0.12%

0.75%

0.24%

0.27%

0.00%
-2.44%
-3.76%
-1.03%
-0.60%
-4.07%
-2.40%
-2.86%
-3.38%
-3.61%
-14.2% -11.0% -7.8% -4.6% -1.4% 1.8%
Ret
urn

0.00%
12 75
Item8.
© PFM Asset Management LLC pfmam.com

CITY OF ESCONDIDO
For the Quarter Ended March 31, 2022
Portfolio Performance
|
The lesser of 10 years or since inception is shown. Performance inception date is June 30, 2019.1.

Interest earned calculated as the ending accrued interest less beginning accrued interest, plus net interest activity.2.

Realized gains / (losses) are shown on an amortized cost basis.3.

Accrual Basis Earnings
Accrual Basis Earnings
Interest Earned²
Rea
lized Gains / (Losses)³
Change in Amortized Cost
Total Earnings
3 Months
$441,169
($6
0,409)
($88,650)
$292,109
1 Year
$1,627,634
$14
0,170
($358,341)
$1,409,463
3 Years
-
-
-
-
5 Year
-
-
-
-
Since Inception¹
$4,725,318
$1,
272,700
($780,700)
$5,217,318
13 76
Item8.
© PFM Asset Management LLC pfm.com|
Issuer Distribution
77 Item8.
© PFM Asset Management LLC pfmam.com

CITY OF ESCONDIDO
For the Quarter Ended March 31, 2022
Portfolio Summary
|
Ratings shown are calculated by assigning a numeral value to each security rating, then calculating a weighted average rating for each security type / issuer category using all available security ratings, excluding Not-Rated (NR) ratings. For security type / issuer categories where a rating from the applicable NRSRO is not available, a rating of NR is assigned. Includes accrued interest and excludes balances invested in overnight funds.

Issuer Diversification
Market Value (%) S&P / Moody's / FitchSecurity Type / Issuer U.S. Treasury 52.0%
UNITED STATES TREASURY 52.0% AA / Aaa / AAA
Federal Agency 7.0%
FANNIE MAE 4.1% AA / Aaa / AAA
FREDDIE MAC 2.9% AA / Aaa / AAA
Agency CMBS 1.3%
FANNIE MAE 0.5% AA / Aaa / AAA
FREDDIE MAC 0.9% AA / Aaa / AAA
Supranational 4.6%
INTER-AMERICAN DEVELOPMENT BANK 2.1% AAA / Aaa / AAA
INTL BANK OF RECONSTRUCTION AND DEV 2.6% AAA / Aaa / AAA Municipal 7.0%
CITY & COUNTY OF SAN FRANCISCO 0.6% NR / NR / AA
FLORIDA STATE BOARD OF ADMIN FIN CORP 0.5% AA / Aa / AA

LONG BEACH COMMUNITY COLLEGE

DISTRICT

0.3% AA / Aa / NR

LOS ANGELES COMMUNITY COLLEGE

DISTRICT

0.3% AA / Aaa / NR
LOS ANGELES UNIFIED SCHOOL DISTRICT 0.2% NR / Aa / AA
NEW YORK ST URBAN DEVELOPMENT CORP 0.7% AA / NR / AA
PALOMAR COMMMUNITY COLLEGE DISTRICT 0.3% AA / Aa / NR
SAN DIEGO COMMUNITY COLLEGE DISTRICT 0.2% AAA / Aaa / NR SAN DIEGO COUNTY WATER AUTHORITY 0.3% AAA / Aa / AA
SAN JUAN UNIFIED SCHOOL DISTRICT 0.3% NR / Aa / NR

SAN RAMON VALLEY UNIFIED SCHOOL

DISTRICT

0.3% AA / Aa / NR
STATE OF CONNECTICUT 0.6% A / Aa / AA
STATE OF MARYLAND 0.3% AAA / Aaa / AAA
Market Value (%) S&P / Moody's / FitchSecurity Type / Issuer Municipal 7.0%
STATE OF MINNESOTA 0.2% AAA / Aa / AAA
STATE OF MISSISSIPPI 0.1% AA / Aa / AA
STATE OF WISCONSIN 0.5% AAA / NR / AA
TAMALPAIS UNION HIGH SCHOOL DISTRICT 0.5% NR / Aaa / NR UNIVERSITY OF CALIFORNIA 0.3% AA / Aa / AA

VENTURA COUNTY COMM COLLEGE

DISTRICT

0.6% AA / Aa / NR
FDIC CD 0.8%
BENEFICIAL BANK 0.2% NR / NR / NR
CAPITAL ONE FINANCIAL CORP 0.2% NR / NR / NR
FOCUS BANK 0.2% NR / NR / NR
GOLDMAN SACHS GROUP INC 0.2% NR / NR / NR
Negotiable CD 1.8%
CREDIT SUISSE GROUP RK 0.5% A / Aa / A
DNB ASA 0.5% AA / Aa / NR
NORDEA BANK ABP 0.8% AA / Aa / AA
Corporate 20.6%
ABBOTT LABORATORIES 0.7% AA / A / NR
AMAZON.COM INC 0.2% AA / A / AA
AMERICAN EXPRESS CO 0.9% BBB / A / A
AMERICAN HONDA FINANCE 0.7% A / A / A
ASTRAZENECA PLC 0.5% A / A / NR
BANK OF AMERICA CO 1.1% A / A / AA
BMW FINANCIAL SERVICES NA LLC 0.6% A / A / NR
BRISTOL-MYERS SQUIBB CO 0.4% A / A / NR
CATERPILLAR INC 1.2% A / A / A
14 78
Item8.
© PFM Asset Management LLC pfmam.com

CITY OF ESCONDIDO
For the Quarter Ended March 31, 2022
Portfolio Summary
|
Ratings shown are calculated by assigning a numeral value to each security rating, then calculating a weighted average rating for each security type / issuer category using all available security ratings, excluding Not-Rated (NR) ratings. For security type / issuer categories where a rating from the applicable NRSRO is not available, a rating of NR is assigned. Includes accrued interest and excludes balances invested in overnight funds.

Issuer Diversification
Market Value (%) S&P / Moody's / FitchSecurity Type / Issuer Corporate 20.6%
CHARLES SCHWAB 0.6% A / A / A
CHEVRON CORPORATION 0.5% AA / Aa / NR
CITIGROUP INC 0.6% BBB / A / A
COMCAST CORP 0.5% A / A / A
DEERE & COMPANY 0.6% A / A / A
GENERAL DYNAMICS CORP 0.6% A / A / NR
GOLDMAN SACHS GROUP INC 0.8% BBB / A / A
HOME DEPOT INC 0.1% A / A / A
HONEYWELL INTERNATIONAL 0.5% A / A / A
IBM CORP 0.7% A / A / NR
JP MORGAN CHASE & CO 1.0% A / A / AA
LOCKHEED MARTIN CORP 0.2% A / A / A
MORGAN STANLEY 0.8% BBB / A / A
PACCAR FINANCIAL CORP 0.3% A / A / NR
PNC FINANCIAL SERVICES GROUP 0.5% A / A / A
Roche Holding AG 1.0% AA / Aa / NR
TARGET CORP 0.6% A / A / A

THE BANK OF NEW YORK MELLON

CORPORATION

1.1% A / A / AA
THE WALT DISNEY CORPORATION 0.6% BBB / A / A
TOYOTA MOTOR CORP 0.8% A / A / A
TRUIST FIN CORP 0.6% A / A / A
UNILEVER PLC 0.1% A / A / A
UNITEDHEALTH GROUP INC 0.5% A / A / A
US BANCORP 0.6% A / A / A
Market Value (%) S&P / Moody's / FitchSecurity Type / Issuer ABS 4.8%
BMW FINANCIAL SERVICES NA LLC 0.1% AAA / Aaa / NR
CAPITAL ONE FINANCIAL CORP 0.5% AAA / NR / AAA
CARMAX AUTO OWNER TRUST 0.9% AAA / Aaa / AAA
FORD CREDIT AUTO OWNER TRUST 0.2% AAA / NR / AAA

GM FINANCIAL CONSUMER AUTOMOBILE
TRUST

0.4% AAA / Aaa / AAA
GM FINANCIAL LEASINGTRUST 0.2% AAA / NR / AAA
HONDA AUTO RECEIVABLES 0.4% AAA / Aaa / AAA

HYUNDAI AUTO LEASE SECURITIZATION
TRUST

0.1% AAA / Aaa / NR
HYUNDAI AUTO RECEIVABLES 0.7% AAA / NR / AAA
KUBOTA CREDIT OWNER TRUST 0.4% NR / Aaa / AAA
MERCEDES-BENZ AUTO LEASE TRUST 0.1% AAA / NR / AAA
NISSAN AUTO LEASE TRUST 0.2% AAA / Aaa / NR
Toyota Lease Owner Trust 0.2% AAA / Aaa / NR
TOYOTA MOTOR CORP 0.2% AAA / Aaa / NR
WORLD OMNI AUTO REC TRUST 0.3% AAA / NR / AAA
100.0%Total
15 79
Item8.
© PFM Asset Management LLC pfm.com|
Portfolio Transactions
80 Item8.
© PFM Asset Management LLC pfmam.com

CITY OF ESCONDIDO
For the Quarter Ended March 31, 2022
Portfolio Activity
|
Quarterly Portfolio Transactions
Trade
D
ate
Settle
Date Par ($) CUSIP
Maturity
Date
Transact
Amount ($)Coupon
Yield
at Market
Realized
G/L (BV)Security Description
BUY
1/3/2022 1/5/2022 3,375,000.00 912828ZL7 US TREASURY NOTES 0.37% 4/30/2025 3,296,492.06 1.11% 1/10/2022 1/12/2022 800,000.00 14913R2U0 CATERPILLAR FINL SERVICE CORPORATE NOTES 1.70% 1/8/2027 794,683.56 1.84% 1/11/2022 1/13/2022 800,000.00 24422EWA3 JOHN DEERE CAPITAL CORP CORPORATE NOTES 1.70% 1/11/2027 795,601.33 1.82% 1/11/2022 1/19/2022 285,000.00 380146AC4 GMCAR 2022-1 A3 1.26% 11/16/2026 284,975.23 1.26% 1/13/2022 1/18/2022 1,420,000.00 912828W71 US TREASURY NOTES 2.12% 3/31/2024 1,464,119.60 0.99% 1/18/2022 1/25/2022 245,000.00 17327CAN3 CITIGROUP INC CORP NOTES (CALLABLE) 2.01% 1/25/2026 245,000.00 2.01% 1/19/2022 1/24/2022 180,000.00 87612EBM7 TARGET CORP CORPORATE NOTES 1.95% 1/15/2027 179,694.00 1.99% 1/19/2022 1/24/2022 255,000.00 345286AC2 FORDO 2022-A A3 1.29% 6/15/2026 254,969.71 1.29% 1/19/2022 1/24/2022 400,000.00 38141GZH0 GOLDMAN SACHS GROUP INC CORPORATE NOTES 1.75% 1/24/2025 400,000.00 1.76% 1/21/2022 1/25/2022 650,000.00 87612EBM7 TARGET CORP CORPORATE NOTES 1.95% 1/15/2027 651,458.71 1.90% 2/11/2022 2/14/2022 400,000.00 91282CDG3 US TREASURY N/B NOTES 1.12% 10/31/2026 387,145.81 1.92% 2/15/2022 2/17/2022 2,400,000.00 91282CCF6 US TREASURY N/B NOTES 0.75% 5/31/2026 2,285,219.09 1.96% 2/16/2022 2/18/2022 310,000.00 61747YEM3 MORGAN STANLEY CORP NOTES (CALLABLE) 2.63% 2/18/2026 310,000.00 2.63% 2/23/2022 2/25/2022 1,000,000.00 459200KM2 IBM CORP CORPORATE NOTES 2.20% 2/9/2027 988,637.78 2.47% 3/1/2022 3/3/2022 700,000.00 438516CE4 HONEYWELL INTERNATIONAL (CALLABLE) CORP 1.10% 3/1/2027 667,338.78 2.09% 3/1/2022 3/4/2022 350,000.00 025816CQ0 AMERICAN EXPRESS CO CORP NOTES (CALLABLE 2.25% 3/4/2025 349,646.50 2.29% 3/3/2022 3/10/2022 1,295,000.00 771196BT8 ROCHE HOLDINGS INC (CALLABLE) CORPORATE 2.13% 3/10/2025 1,295,000.00 2.13% 16 81
Item8.
© PFM Asset Management LLC pfmam.com

CITY OF ESCONDIDO
For the Quarter Ended March 31, 2022
Portfolio Activity
|
Quarterly Portfolio Transactions
Trade
D
ate
Settle
Date Par ($) CUSIP
Maturity
Date
Transact
Amount ($)Coupon
Yield
at Market
Realized
G/L (BV)Security Description
BUY
3/9/2022 3/16/2022 720,000.00 448977AD0 HART 2022-A A3 2.22% 10/15/2026 719,972.28 2.22% 3/24/2022 3/28/2022 105,000.00 437076CM2 HOME DEPOT INC (CALLABLE) CORPORATE NOTE 2.70% 4/15/2025 104,816.25 2.76% Total BUY 15,690,000.00 15,474,770.69 0.00

INTEREST
1/1/2022 1/1/2022 705,000.00 341271AD6 FL ST BOARD OF ADMIN TXBL REV BONDS 1.25% 7/1/2025 4,434.45 1/1/2022 1/1/2022 150,000.00 20772KJW0 CT ST TXBL GO BONDS 1.99% 7/1/2024 1,498.50 1/1/2022 1/1/2022 310,000.00 544647FC9 LOS ANGELES USD, CA TXBL GO BONDS 1.45% 7/1/2026 638.99 1/1/2022 1/1/2022 640,000.00 977123X60 WI DEPT OF TRANS TXBL REV BONDS 0.62% 7/1/2024 1,996.80 1/1/2022 1/25/2022 79,350.98 3137FQ3V3 FHMS KJ27 A1 2.09% 7/1/2024 335.19 1/1/2022 1/25/2022 169,149.15 3136AEGQ4 FNA 2013-M7 A2 2.28% 12/1/2022 321.38 1/1/2022 1/25/2022 445,885.79 3136AJB54 FANNIEMAE-ACES 3.34% 3/1/2024 1,243.28 1/1/2022 1/25/2022 665,000.00 3137BGK24 FHMS K043 A2 3.06% 12/1/2024 1,696.86 1/1/2022 1/25/2022 400,000.00 3137BTU25 FHMS K724 A2 3.06% 11/1/2023 1,020.67 1/3/2022 1/3/2022 MONEY0002 MONEY MARKET FUND 2.75
1/7/2022 1/7/2022 700,000.00 3135G0X24 FANNIE MAE NOTES 1.62% 1/7/2025 5,687.50 1/10/2022 1/10/2022 570,000.00 3135G05G4 FANNIE MAE NOTES 0.25% 7/10/2023 712.50 1/15/2022 1/15/2022 610,000.00 14317DAC4 CARMX 2021-3 A3 0.55% 6/15/2026 279.58 17 82
Item8.
© PFM Asset Management LLC pfmam.com

CITY OF ESCONDIDO
For the Quarter Ended March 31, 2022
Portfolio Activity
|
Quarterly Portfolio Transactions
Trade
D
ate
Settle
Date Par ($) CUSIP
Maturity
Date
Transact
Amount ($)Coupon
Yield
at Market
Realized
G/L (BV)Security Description

INTEREST
1/15/2022 1/15/2022 90,000.00 58769EAC2 MBALT 2020-B A3 0.40% 11/15/2023 30.00 1/15/2022 1/15/2022 220,000.00 65480EAD3 NALT 2020-B A3 0.43% 10/16/2023 78.83 1/15/2022 1/15/2022 290,000.00 89237VAB5 TAOT 2020-C A3 0.44% 10/15/2024 106.33 1/15/2022 1/15/2022 140,000.00 44891TAD8 HALST 2021-A A4 0.42% 12/16/2024 49.00 1/15/2022 1/15/2022 120,000.00 14316NAC3 CARMX 2021-1 A3 0.34% 12/15/2025 34.00 1/15/2022 1/15/2022 370,000.00 50117XAE2 KCOT 2021-2A A3 0.56% 11/17/2025 172.67 1/15/2022 1/15/2022 350,000.00 98163KAC6 WOART 2021-D A3 0.81% 10/15/2026 236.25 1/15/2022 1/15/2022 155,000.00 50117TAC5 KCOT 2021-1A A3 0.62% 8/15/2025 80.08 1/15/2022 1/15/2022 220,000.00 44933LAC7 HART 2021-A A3 0.38% 9/15/2025 69.67 1/15/2022 1/15/2022 715,000.00 14041NFY2 COMET 2021-A3 A3 1.04% 11/16/2026 929.50 1/15/2022 1/15/2022 300,000.00 14314QAC8 CARMX 2021-2 A3 0.52% 2/17/2026 130.00 1/15/2022 1/15/2022 205,000.00 14315FAD9 CARMX 2020-3 A3 0.62% 3/17/2025 105.92 1/16/2022 1/16/2022 300,000.00 362590AC5 GMCAR 2020-3 A3 0.45% 4/16/2025 112.50 1/18/2022 1/18/2022 305,000.00 43815EAC8 HAROT 2021-3 A3 0.41% 11/18/2025 104.21 1/20/2022 1/20/2022 225,000.00 36262XAD6 GMALT 2021-3 A4 0.50% 7/21/2025 93.75 1/20/2022 1/20/2022 235,000.00 89238EAC0 TLOT 2021-A A3 0.39% 4/22/2024 76.38 1/21/2022 1/21/2022 285,000.00 43815GAC3 HAROT 2021-4 A3 0.88% 1/21/2026 209.00 18 83
Item8.
© PFM Asset Management LLC pfmam.com

CITY OF ESCONDIDO
For the Quarter Ended March 31, 2022
Portfolio Activity
|
Quarterly Portfolio Transactions
Trade
D
ate
Settle
Date Par ($) CUSIP
Maturity
Date
Transact
Amount ($)Coupon
Yield
at Market
Realized
G/L (BV)Security Description

INTEREST
1/22/2022 1/22/2022 1,395,000.00 06051GFB0 BANK OF AMERICA CORP NOTE 4.12% 1/22/2024 28,771.88 1/25/2022 1/25/2022 160,000.00 05591RAD6 BMWLT 2021-1 A4 0.37% 7/25/2024 49.33 1/30/2022 1/30/2022 845,000.00 91159HHX1 US BANCORP NOTES (CALLABLE) 2.40% 7/30/2024 10,140.00 1/31/2022 1/31/2022 740,000.00 912828Y87 US TREASURY NOTES 1.75% 7/31/2024 6,475.00 1/31/2022 1/31/2022 600,000.00 912828V80 US TREASURY NOTES 2.25% 1/31/2024 6,750.00 1/31/2022 1/31/2022 2,500,000.00 91282CAB7 US TREASURY NOTES 0.25% 7/31/2025 3,125.00 1/31/2022 1/31/2022 280,000.00 9128283V0 US TREASURY NOTES 2.50% 1/31/2025 3,500.00 1/31/2022 1/31/2022 145,000.00 912828Y61 US TREASURY NOTES 2.75% 7/31/2023 1,993.75 1/31/2022 1/31/2022 240,000.00 91282CCN9 US TREASURY N/B NOTES 0.12% 7/31/2023 150.00 1/31/2022 1/31/2022 5,325,000.00 91282CBH3 US TREASURY NOTES 0.37% 1/31/2026 9,984.38 2/1/2022 2/1/2022 415,000.00 798306WN2 SAN JUAN USD, CA TXBL GO BONDS 0.70% 8/1/2024 1,456.65 2/1/2022 2/1/2022 95,000.00 00724PAA7 ADOBE INC CORP NOTE 1.70% 2/1/2023 807.50 2/1/2022 2/1/2022 275,000.00 60412AVJ9 MN ST TXBL GO BONDS 0.63% 8/1/2025 866.25 2/1/2022 2/1/2022 440,000.00 697511FB4 PALOMAR COMM COLL DIST, CA TXBL GO BONDS 0.79% 8/1/2024 1,746.80 2/1/2022 2/1/2022 350,000.00 542411NH2 LONG BEACH CCD, CA TXBL GO BONDS 1.74% 8/1/2023 3,050.25 2/1/2022 2/1/2022 350,000.00 923040GT0 VENTURA CNTY CCD, CA TXBL GO BONDS 1.75% 8/1/2023 3,062.50 2/1/2022 2/1/2022 405,000.00 799408Z85 SAN RAMON VALLEY USD, CA TXBL GO BONDS 0.74% 8/1/2025 1,498.50 19 84
Item8.
© PFM Asset Management LLC pfmam.com

CITY OF ESCONDIDO
For the Quarter Ended March 31, 2022
Portfolio Activity
|
Quarterly Portfolio Transactions
Trade
D
ate
Settle
Date Par ($) CUSIP
Maturity
Date
Transact
Amount ($)Coupon
Yield
at Market
Realized
G/L (BV)Security Description

INTEREST
2/1/2022 2/1/2022 615,000.00 874857KJ3 TAMALPAIS UHSD, CA TXBL GO BONDS 1.97% 8/1/2023 6,060.83 2/1/2022 2/1/2022 410,000.00 54438CYK2 LOS ANGELES CCD, CA TXBL GO BONDS 0.77% 8/1/2025 1,584.65 2/1/2022 2/1/2022 815,000.00 808513AY1 CHARLES SCHWAB CORP NOTES 3.55% 2/1/2024 14,466.25 2/1/2022 2/1/2022 375,000.00 574193TQ1 MD ST TXBL GO BONDS 0.51% 8/1/2024 956.25 2/1/2022 2/1/2022 245,000.00 797272QP9 SAN DIEGO CCD, CA TXBL GO BONDS 2.04% 8/1/2024 2,506.35 2/1/2022 2/1/2022 490,000.00 923040GU7 VENTURA CNTY CCD, CA TXBL GO BONDS 1.80% 8/1/2024 4,410.00 2/1/2022 2/25/2022 168,773.44 3136AEGQ4 FNA 2013-M7 A2 2.28% 12/1/2022 336.38 2/1/2022 2/25/2022 445,008.84 3136AJB54 FANNIEMAE-ACES 3.34% 3/1/2024 1,264.85 2/1/2022 2/25/2022 72,789.86 3137FQ3V3 FHMS KJ27 A1 2.09% 7/1/2024 126.90 2/1/2022 2/25/2022 665,000.00 3137BGK24 FHMS K043 A2 3.06% 12/1/2024 1,696.86 2/1/2022 2/25/2022 400,000.00 3137BTU25 FHMS K724 A2 3.06% 11/1/2023 1,020.67 2/2/2022 2/2/2022 MONEY0002 MONEY MARKET FUND 3.81
2/3/2022 2/3/2022 800,000.00 025816BW8 AMERICAN EXPRESS CREDIT CORP NOTES (CALL 3.70% 8/3/2023 14,800.00 2/12/2022 2/12/2022 790,000.00 3137EAEP0 FREDDIE MAC NOTES 1.50% 2/12/2025 5,925.00 2/12/2022 2/12/2022 215,000.00 05565EBU8 BMW US CAPITAL LLC CORPORATE NOTES 0.75% 8/12/2024 806.25 2/12/2022 2/12/2022 160,000.00 904764BN6 UNILEVER CAPITAL CORP (CALLABLE) CORPORA 0.62% 8/12/2024 500.80 2/12/2022 2/12/2022 650,000.00 38141GXS8 GOLDMAN SACHS GROUP INC CORPORATE NOTES 0.85% 2/12/2026 2,778.75 20 85
Item8.
© PFM Asset Management LLC pfmam.com

CITY OF ESCONDIDO
For the Quarter Ended March 31, 2022
Portfolio Activity
|
Quarterly Portfolio Transactions
Trade
D
ate
Settle
Date Par ($) CUSIP
Maturity
Date
Transact
Amount ($)Coupon
Yield
at Market
Realized
G/L (BV)Security Description

INTEREST
2/15/2022 2/15/2022 220,000.00 44933LAC7 HART 2021-A A3 0.38% 9/15/2025 69.67 2/15/2022 2/15/2022 300,000.00 14314QAC8 CARMX 2021-2 A3 0.52% 2/17/2026 130.00 2/15/2022 2/15/2022 715,000.00 14041NFY2 COMET 2021-A3 A3 1.04% 11/16/2026 619.67 2/15/2022 2/15/2022 155,000.00 50117TAC5 KCOT 2021-1A A3 0.62% 8/15/2025 80.08 2/15/2022 2/15/2022 286,623.31 89237VAB5 TAOT 2020-C A3 0.44% 10/15/2024 105.10 2/15/2022 2/15/2022 120,000.00 14316NAC3 CARMX 2021-1 A3 0.34% 12/15/2025 34.00 2/15/2022 2/15/2022 90,000.00 58769EAC2 MBALT 2020-B A3 0.40% 11/15/2023 30.00 2/15/2022 2/15/2022 201,673.89 14315FAD9 CARMX 2020-3 A3 0.62% 3/17/2025 104.20 2/15/2022 2/15/2022 220,000.00 65480EAD3 NALT 2020-B A3 0.43% 10/16/2023 78.83 2/15/2022 2/15/2022 575,000.00 912828D56 US TREASURY NOTES 2.37% 8/15/2024 6,828.13 2/15/2022 2/15/2022 255,000.00 345286AC2 FORDO 2022-A A3 1.29% 6/15/2026 191.89 2/15/2022 2/15/2022 370,000.00 50117XAE2 KCOT 2021-2A A3 0.56% 11/17/2025 172.67 2/15/2022 2/15/2022 140,000.00 44891TAD8 HALST 2021-A A4 0.42% 12/16/2024 49.00 2/15/2022 2/15/2022 350,000.00 98163KAC6 WOART 2021-D A3 0.81% 10/15/2026 236.25 2/15/2022 2/15/2022 610,000.00 14317DAC4 CARMX 2021-3 A3 0.55% 6/15/2026 279.58 2/16/2022 2/16/2022 285,000.00 380146AC4 GMCAR 2022-1 A3 1.26% 11/16/2026 269.33 2/16/2022 2/16/2022 300,000.00 362590AC5 GMCAR 2020-3 A3 0.45% 4/16/2025 112.50 21 86
Item8.
© PFM Asset Management LLC pfmam.com

CITY OF ESCONDIDO
For the Quarter Ended March 31, 2022
Portfolio Activity
|
Quarterly Portfolio Transactions
Trade
D
ate
Settle
Date Par ($) CUSIP
Maturity
Date
Transact
Amount ($)Coupon
Yield
at Market
Realized
G/L (BV)Security Description

INTEREST
2/17/2022 2/17/2022 2,290,000.00 3130AJ7E3 FEDERAL HOME LOAN BANKS NOTES 1.37% 2/17/2023 15,743.75 2/18/2022 2/18/2022 305,000.00 43815EAC8 HAROT 2021-3 A3 0.41% 11/18/2025 104.21 2/20/2022 2/20/2022 235,000.00 89238EAC0 TLOT 2021-A A3 0.39% 4/22/2024 76.38 2/20/2022 2/20/2022 225,000.00 36262XAD6 GMALT 2021-3 A4 0.50% 7/21/2025 93.75 2/21/2022 2/21/2022 285,000.00 43815GAC3 HAROT 2021-4 A3 0.88% 1/21/2026 209.00 2/22/2022 2/22/2022 880,000.00 023135AW6 AMAZON.COM INC BONDS 2.40% 2/22/2023 10,560.00 2/24/2022 2/24/2022 275,000.00 3137EAEV7 FREDDIE MAC NOTES 0.25% 8/24/2023 343.75 2/25/2022 2/25/2022 2,000,000.00 3135G05X7 FANNIE MAE NOTES 0.37% 8/25/2025 3,750.00 2/25/2022 2/25/2022 160,000.00 05591RAD6 BMWLT 2021-1 A4 0.37% 7/25/2024 49.33 2/28/2022 2/28/2022 1,000,000.00 65558TLL7 NORDEA BANK ABP NEW YORK CERT DEPOS 1.85% 8/26/2022 9,558.33 2/28/2022 2/28/2022 900,000.00 91282CCU3 US TREASURY N/B NOTES 0.12% 8/31/2023 562.50 2/28/2022 2/28/2022 3,400,000.00 91282CBQ3 US TREASURY NOTES 0.50% 2/28/2026 8,500.00 2/28/2022 2/28/2022 845,000.00 254687FK7 WALT DISNEY COMPANY/THE 1.75% 8/30/2024 7,393.75 2/28/2022 2/28/2022 95,000.00 912828W48 US TREASURY NOTES 2.12% 2/29/2024 1,009.38 3/1/2022 3/1/2022 350,000.00 79772EAX7 SAN FRAN COMM FAC DIST, CA TXBL REV BNDS 2.50% 9/1/2022 4,375.00 3/1/2022 3/1/2022 235,000.00 539830BE8 LOCKHEED MARTIN CORP NOTES (CALLABLE) 2.90% 3/1/2025 3,407.50 3/1/2022 3/1/2022 380,000.00 79772EAE9 SAN FRAN COMM FAC DIST, CA TXBL REV BNDS 2.50% 9/1/2022 4,750.00 22 87
Item8.
© PFM Asset Management LLC pfmam.com

CITY OF ESCONDIDO
For the Quarter Ended March 31, 2022
Portfolio Activity
|
Quarterly Portfolio Transactions
Trade
D
ate
Settle
Date Par ($) CUSIP
Maturity
Date
Transact
Amount ($)Coupon
Yield
at Market
Realized
G/L (BV)Security Description

INTEREST
3/1/2022 3/25/2022 442,498.18 3136AJB54 FANNIEMAE-ACES 3.34% 3/1/2024 1,257.52 3/1/2022 3/25/2022 665,000.00 3137BGK24 FHMS K043 A2 3.06% 12/1/2024 1,696.86 3/1/2022 3/25/2022 400,000.00 3137BTU25 FHMS K724 A2 3.06% 11/1/2023 1,020.67 3/1/2022 3/25/2022 72,542.54 3137FQ3V3 FHMS KJ27 A1 2.09% 7/1/2024 185.46 3/1/2022 3/25/2022 161,705.04 3136AEGQ4 FNA 2013-M7 A2 2.28% 12/1/2022 307.24 3/2/2022 3/2/2022 MONEY0002 MONEY MARKET FUND 2.49
3/9/2022 3/9/2022 1,000,000.00 02665WDZ1 AMERICAN HONDA FINANCE CORPORATE NOTES 1.30% 9/9/2026 6,500.00 3/12/2022 3/12/2022 1,500,000.00 3135G0U43 FANNIE MAE NOTES 2.87% 9/12/2023 21,562.50 3/13/2022 3/13/2022 750,000.00 46647PBH8 JPMORGAN CHASE & CO CORP NOTE 2.00% 3/13/2026 7,518.75 3/14/2022 3/14/2022 835,000.00 4581X0DK1 INTER-AMERICAN DEVELOPMENT BANK NOTES 1.75% 3/14/2025 7,306.25 3/15/2022 3/15/2022 188,415.84 14315FAD9 CARMX 2020-3 A3 0.62% 3/17/2025 97.35 3/15/2022 3/15/2022 300,000.00 14314QAC8 CARMX 2021-2 A3 0.52% 2/17/2026 130.00 3/15/2022 3/15/2022 640,000.00 91324PCC4 UNITEDHEALTH GROUP INC CORP NOTES 2.87% 3/15/2023 9,200.00 3/15/2022 3/15/2022 155,000.00 50117TAC5 KCOT 2021-1A A3 0.62% 8/15/2025 80.08 3/15/2022 3/15/2022 220,000.00 44933LAC7 HART 2021-A A3 0.38% 9/15/2025 69.67 3/15/2022 3/15/2022 90,000.00 58769EAC2 MBALT 2020-B A3 0.40% 11/15/2023 30.00 3/15/2022 3/15/2022 220,000.00 65480EAD3 NALT 2020-B A3 0.43% 10/16/2023 78.83 23 88
Item8.
© PFM Asset Management LLC pfmam.com

CITY OF ESCONDIDO
For the Quarter Ended March 31, 2022
Portfolio Activity
|
Quarterly Portfolio Transactions
Trade
D
ate
Settle
Date Par ($) CUSIP
Maturity
Date
Transact
Amount ($)Coupon
Yield
at Market
Realized
G/L (BV)Security Description

INTEREST
3/15/2022 3/15/2022 255,000.00 345286AC2 FORDO 2022-A A3 1.29% 6/15/2026 274.13 3/15/2022 3/15/2022 350,000.00 98163KAC6 WOART 2021-D A3 0.81% 10/15/2026 236.25 3/15/2022 3/15/2022 120,000.00 14316NAC3 CARMX 2021-1 A3 0.34% 12/15/2025 34.00 3/15/2022 3/15/2022 945,000.00 650036DT0 NY ST URBAN DEV CORP TXBL REV BONDS 0.87% 3/15/2025 4,110.75 3/15/2022 3/15/2022 370,000.00 50117XAE2 KCOT 2021-2A A3 0.56% 11/17/2025 172.67 3/15/2022 3/15/2022 610,000.00 14317DAC4 CARMX 2021-3 A3 0.55% 6/15/2026 279.58 3/15/2022 3/15/2022 267,295.96 89237VAB5 TAOT 2020-C A3 0.44% 10/15/2024 98.01 3/15/2022 3/15/2022 715,000.00 14041NFY2 COMET 2021-A3 A3 1.04% 11/16/2026 619.67 3/15/2022 3/15/2022 630,000.00 20772KEW5 CT ST TXBL GO BONDS 3.74% 9/15/2025 11,790.45 3/15/2022 3/15/2022 140,000.00 44891TAD8 HALST 2021-A A4 0.42% 12/16/2024 49.00 3/16/2022 3/16/2022 290,381.54 362590AC5 GMCAR 2020-3 A3 0.45% 4/16/2025 108.89 3/16/2022 3/16/2022 285,000.00 380146AC4 GMCAR 2022-1 A3 1.26% 11/16/2026 299.25 3/17/2022 3/17/2022 715,000.00 22552G3C2 CREDIT SUISSE NEW YORK CERT DEPOS 0.59% 3/17/2023 4,206.78 3/18/2022 3/18/2022 305,000.00 43815EAC8 HAROT 2021-3 A3 0.41% 11/18/2025 104.21 3/20/2022 3/20/2022 225,000.00 36262XAD6 GMALT 2021-3 A4 0.50% 7/21/2025 93.75 3/20/2022 3/20/2022 235,000.00 89238EAC0 TLOT 2021-A A3 0.39% 4/22/2024 76.38 3/21/2022 3/21/2022 285,000.00 43815GAC3 HAROT 2021-4 A3 0.88% 1/21/2026 209.00 24 89
Item8.
© PFM Asset Management LLC pfmam.com

CITY OF ESCONDIDO
For the Quarter Ended March 31, 2022
Portfolio Activity
|
Quarterly Portfolio Transactions
Trade
D
ate
Settle
Date Par ($) CUSIP
Maturity
Date
Transact
Amount ($)Coupon
Yield
at Market
Realized
G/L (BV)Security Description

INTEREST
3/23/2022 3/23/2022 1,530,000.00 4581X0DZ8 INTER-AMERICAN DEVEL BK NOTES 0.50% 9/23/2024 3,825.00 3/23/2022 3/23/2022 1,150,000.00 3137EAEX3 FREDDIE MAC NOTES 0.37% 9/23/2025 2,156.25 3/25/2022 3/25/2022 160,000.00 05591RAD6 BMWLT 2021-1 A4 0.37% 7/25/2024 49.33 3/31/2022 3/31/2022 4,070,000.00 912828W71 US TREASURY NOTES 2.12% 3/31/2024 43,243.75 3/31/2022 3/31/2022 5,000,000.00 9128285D8 US TREASURY NOTES 2.87% 9/30/2023 71,875.00 3/31/2022 3/31/2022 2,000,000.00 91282CBT7 US TREASURY N/B NOTES 0.75% 3/31/2026 7,500.00 3/31/2022 3/31/2022 795,000.00 9128282Y5 US TREASURY NOTES 2.12% 9/30/2024 8,446.88 3/31/2022 3/31/2022 800,000.00 91282CDA6 US TREASURY NOTES 0.25% 9/30/2023 1,000.00 3/31/2022 3/31/2022 620,000.00 91282CAM3 US TREASURY NOTES 0.25% 9/30/2025 775.00 Total INTEREST 81,407,094.36 463,714.11 0.00

MATURITY
1/1/2022 1/1/2022 18,256.99 3137BHXY8 FHLMC MULTIFAMILY STRUCTURED P 2.79% 1/1/2022 18,299.45 Total MATURITY 18,256.99 18,299.45 0.00

PAYDOWNS
1/1/2022 1/25/2022 876.95 3136AJB54 FANNIEMAE-ACES 3.34% 3/1/2024 876.95 1/1/2022 1/25/2022 375.71 3136AEGQ4 FNA 2013-M7 A2 2.28% 12/1/2022 375.71 1/1/2022 1/25/2022 6,561.12 3137FQ3V3 FHMS KJ27 A1 2.09% 7/1/2024 6,561.12 25 90
Item8.
© PFM Asset Management LLC pfmam.com

CITY OF ESCONDIDO
For the Quarter Ended March 31, 2022
Portfolio Activity
|
Quarterly Portfolio Transactions
Trade
D
ate
Settle
Date Par ($) CUSIP
Maturity
Date
Transact
Amount ($)Coupon
Yield
at Market
Realized
G/L (BV)Security Description

PAYDOWNS
1/15/2022 1/15/2022 3,376.69 89237VAB5 TAOT 2020-C A3 0.44% 10/15/2024 3,376.69 1/15/2022 1/15/2022 3,326.11 14315FAD9 CARMX 2020-3 A3 0.62% 3/17/2025 3,326.11 2/1/2022 2/25/2022 7,068.40 3136AEGQ4 FNA 2013-M7 A2 2.28% 12/1/2022 7,068.40 2/1/2022 2/25/2022 247.32 3137FQ3V3 FHMS KJ27 A1 2.09% 7/1/2024 247.32 2/1/2022 2/25/2022 2,510.66 3136AJB54 FANNIEMAE-ACES 3.34% 3/1/2024 2,510.66 2/15/2022 2/15/2022 19,327.35 89237VAB5 TAOT 2020-C A3 0.44% 10/15/2024 19,327.35 2/15/2022 2/15/2022 13,258.05 14315FAD9 CARMX 2020-3 A3 0.62% 3/17/2025 13,258.05 2/16/2022 2/16/2022 9,618.46 362590AC5 GMCAR 2020-3 A3 0.45% 4/16/2025 9,618.46 3/1/2022 3/25/2022 13,422.05 3137FQ3V3 FHMS KJ27 A1 2.09% 7/1/2024 13,422.05 3/1/2022 3/25/2022 410.69 3136AEGQ4 FNA 2013-M7 A2 2.28% 12/1/2022 410.69 3/1/2022 3/25/2022 2,257.59 3136AJB54 FANNIEMAE-ACES 3.34% 3/1/2024 2,257.59 3/15/2022 3/15/2022 18,001.94 89237VAB5 TAOT 2020-C A3 0.44% 10/15/2024 18,001.94 3/15/2022 3/15/2022 2,623.19 65480EAD3 NALT 2020-B A3 0.43% 10/16/2023 2,623.19 3/15/2022 3/15/2022 12,842.68 14315FAD9 CARMX 2020-3 A3 0.62% 3/17/2025 12,842.68 3/16/2022 3/16/2022 17,200.73 362590AC5 GMCAR 2020-3 A3 0.45% 4/16/2025 17,200.73 Total PAYDOWNS 133,305.69 133,305.69 0.00
26 91
Item8.
© PFM Asset Management LLC pfmam.com

CITY OF ESCONDIDO
For the Quarter Ended March 31, 2022
Portfolio Activity
|
Quarterly Portfolio Transactions
Trade
D
ate
Settle
Date Par ($) CUSIP
Maturity
Date
Transact
Amount ($)Coupon
Yield
at Market
Realized
G/L (BV)Security Description
SELL
1/3/2022 1/5/2022 3,000,000.00 91282CAX9 US TREASURY NOTES 0.12% 11/30/2022 2,993,691.19 -5,617.58 1/10/2022 1/12/2022 455,000.00 91282CBH3 US TREASURY NOTES 0.37% 1/31/2026 436,747.45 -13,258.39 1/10/2022 1/12/2022 345,000.00 91282CBH3 US TREASURY NOTES 0.37% 1/31/2026 331,160.16 -8,946.04 1/11/2022 1/13/2022 835,000.00 24422ETG4 JOHN DEERE CAPITAL CORP 2.80% 3/6/2023 862,143.99 17,775.60 1/12/2022 1/19/2022 285,000.00 91282CAX9 US TREASURY NOTES 0.12% 11/30/2022 284,269.64 -682.69 1/13/2022 1/18/2022 1,420,000.00 09247XAL5 BLACKROCK INC CORP NOTES 3.50% 3/18/2024 1,510,790.07 54,544.90 1/18/2022 1/21/2022 250,000.00 3135G04Z3 FANNIE MAE NOTES 0.50% 6/17/2025 242,175.56 -8,472.27 1/20/2022 1/24/2022 65,000.00 9128283C2 US TREASURY NOTES 2.00% 10/31/2022 66,056.81 483.49 1/21/2022 1/24/2022 1,290,000.00 3135G04Z3 FANNIE MAE NOTES 0.50% 6/17/2025 1,253,820.52 -39,569.41 2/10/2022 2/14/2022 400,000.00 20772KKL2 CT ST T/E GO BONDS 4.00% 6/1/2025 436,272.44 -6,271.78 2/15/2022 2/17/2022 95,000.00 00724PAA7 ADOBE INC CORP NOTE 1.70% 2/1/2023 95,496.43 466.17 2/15/2022 2/17/2022 390,000.00 3130AJ7E3 FEDERAL HOME LOAN BANKS NOTES 1.37% 2/17/2023 390,549.90 789.76 2/15/2022 2/17/2022 1,110,000.00 3130AJ7E3 FEDERAL HOME LOAN BANKS NOTES 1.37% 2/17/2023 1,111,565.10 -8,985.19 2/15/2022 2/17/2022 500,000.00 3135G03U5 FANNIE MAE NOTES 0.62% 4/22/2025 481,748.26 -21,058.64 2/16/2022 2/18/2022 310,000.00 3130AJ7E3 FEDERAL HOME LOAN BANKS NOTES 1.37% 2/17/2023 310,647.34 -2,302.91 2/23/2022 2/25/2022 700,000.00 3135G0X24 FANNIE MAE NOTES 1.62% 1/7/2025 698,184.67 -2,050.23 2/23/2022 2/25/2022 100,000.00 3135G04Z3 FANNIE MAE NOTES 0.50% 6/17/2025 95,783.44 -4,516.94 27 92
Item8.
© PFM Asset Management LLC pfmam.com

CITY OF ESCONDIDO
For the Quarter Ended March 31, 2022
Portfolio Activity
|
Quarterly Portfolio Transactions
Trade
D
ate
Settle
Date Par ($) CUSIP
Maturity
Date
Transact
Amount ($)Coupon
Yield
at Market
Realized
G/L (BV)Security Description
SELL
2/23/2022 2/25/2022 120,000.00 91282CAB7 US TREASURY NOTES 0.25% 7/31/2025 113,706.66 -4,535.09 3/1/2022 3/3/2022 480,000.00 3130AJ7E3 FEDERAL HOME LOAN BANKS NOTES 1.37% 2/17/2023 481,786.13 -2,894.50 3/1/2022 3/3/2022 40,000.00 912828N30 US TREASURY NOTES 2.12% 12/31/2022 40,548.70 -262.55 3/1/2022 3/3/2022 235,000.00 912828N30 US TREASURY NOTES 2.12% 12/31/2022 238,223.64 -1,466.66 3/2/2022 3/4/2022 350,000.00 023135AW6 AMAZON.COM INC BONDS 2.40% 2/22/2023 353,465.00 3,848.63 3/4/2022 3/10/2022 530,000.00 023135AW6 AMAZON.COM INC BONDS 2.40% 2/22/2023 535,718.70 6,070.64 3/4/2022 3/10/2022 650,000.00 91282CBV2 US TREASURY N/B NOTES 0.37% 4/15/2024 635,565.57 -11,451.17 3/17/2022 3/17/2022 400,000.00 91282CAX9 US TREASURY NOTES 0.12% 11/30/2022 397,475.11 -2,560.82 3/17/2022 3/17/2022 185,000.00 9128283C2 US TREASURY NOTES 2.00% 10/31/2022 187,563.76 542.21 3/28/2022 3/28/2022 50,000.00 9128284L1 US TREASURY NOTES 2.75% 4/30/2023 51,062.15 38.50 3/28/2022 3/28/2022 50,000.00 9128284D9 US TREASURY NOTES 2.50% 3/31/2023 50,999.47 -66.22 Total SELL 14,640,000.00 14 ,687,217.86 -60,409.18
28 93
Item8.
© PFM Asset Management LLC pfm.com|
Portfolio Holdings
94 Item8.
© PFM Asset Management LLC pfmam.com

CITY OF ESCONDIDO
For the Quarter Ended March 31, 2022
Portfolio Holdings
|
Managed Account Detail of Securities Held
Security Type/Description
D
ated Date/Coupon/Maturity CUSIP Par
S&P
Rating
Moody's
Rating
Settle
Date
Original
Cost
Trade
Date
YTM
at Cost
Accrued
Interest
Market
Value
Amortized
Cost
U.S. Treasury

US TREASURY NOTES
DTD 11/30/2020 0.125% 11/30/2022
91282CAX9 250,000.00 AA+ Aaa 12/4/2020 12/4/2020 249,853.52 0.15 104.74 248,007.80249,950.97

US TREASURY NOTES
DTD 11/30/2020 0.125% 11/30/2022
91282CAX9 315,000.00 AA+ Aaa 12/2/2020 12/4/2020 314,753.91 0.16 131.97 312,489.83314,917.63

US TREASURY NOTES
DTD 12/31/2015 2.125% 12/31/2022
912828N30 155,000.00 AA+ Aaa 1/29/2021 2/2/2021 160,933.59 0.12 827.99 155,775.00157,332.57

US TREASURY NOTES
DTD 04/30/2018 2.750% 04/30/2023
9128284L1 50,000.00 AA+ Aaa 6/3/2019 6/5/2019 51,652.34 1.87 577.35 50,507.8150,456.86

US TREASURY NOTES
DTD 05/02/2016 1.625% 04/30/2023
912828R28 4,800,000.00 AA+ Aaa 11/10/2021 11/12/2021 4,890,187.50 0.34 32,751.38 4,791,000.004,866,542.84

US TREASURY NOTES
DTD 05/15/2020 0.125% 05/15/2023
912828ZP8 2,285,000.00 AA+ Aaa 1/4/2021 1/6/2021 2,284,732.23 0.13 1,080.96 2,241,085.042,284,872.51

US TREASURY NOTES
DTD 06/30/2016 1.375% 06/30/2023
912828S35 775,000.00 AA+ Aaa 5/8/2019 5/9/2019 747,511.72 2.28 2,678.78 769,187.50766,733.53

US TREASURY NOTES
DTD 07/31/2018 2.750% 07/31/2023
912828Y61 145,000.00 AA+ Aaa 9/3/2019 9/5/2019 152,657.81 1.36 660.91 146,314.06147,611.72

US TREASURY N/B NOTES
DTD 07/31/2021 0.125% 07/31/2023
91282CCN9 240,000.00 AA+ Aaa 8/5/2021 8/9/2021 239,634.38 0.20 49.72 233,925.00239,753.55

US TREASURY N/B NOTES
DTD 08/31/2021 0.125% 08/31/2023
91282CCU3 900,000.00 AA+ Aaa 9/1/2021 9/3/2021 898,558.59 0.21 97.83 875,390.58898,974.95

US TREASURY NOTES
DTD 10/01/2018 2.875% 09/30/2023
9128285D8 5,000,000.00 AA+ Aaa 11/10/2021 11/12/2021 5,224,609.38 0.47 392.76 5,054,687.505,178,837.45

US TREASURY NOTES
DTD 09/30/2021 0.250% 09/30/2023
91282CDA6 800,000.00 AA+ Aaa 10/1/2021 10/6/2021 799,718.75 0.27 5.46 777,875.04799,787.51

US TREASURY N/B NOTES
DTD 10/31/2021 0.375% 10/31/2023
91282CDD0 2,350,000.00 AA+ Aaa 11/1/2021 11/3/2021 2,343,390.63 0.52 3,700.28 2,284,640.632,344,745.23

US TREASURY NOTES
DTD 01/31/2017 2.250% 01/31/2024
912828V80 600,000.00 AA+ Aaa 5/8/2019 5/9/2019 598,851.56 2.29 2,237.57 599,250.00599,554.71

US TREASURY NOTES
DTD 02/28/2017 2.125% 02/29/2024
912828W48 95,000.00 AA+ Aaa 4/29/2019 5/1/2019 94,157.62 2.32 175.54 94,658.5994,666.39 29 95
Item8.
© PFM Asset Management LLC pfmam.com

CITY OF ESCONDIDO
For the Quarter Ended March 31, 2022
Portfolio Holdings
|
Security Type/Description
Dated Date/Coupon/Maturity CUSIP Par
S&P
Rating
Moody's
Rating
Settle
Date
Original
Cost
Trade
Date
YTM
at Cost
Accrued
Interest
Market
Value
Amortized
Cost
U.S. Treasury

US TREASURY NOTES
DTD 03/31/2017 2.125% 03/31/2024
912828W71 1,420,000.00 AA+ Aaa 1/13/2022 1/18/2022 1,455,000.78 0.99 82.44 1,414,009.301,451,818.89

US TREASURY NOTES
DTD 03/31/2017 2.125% 03/31/2024
912828W71 2,650,000.00 AA+ Aaa 4/15/2021 4/16/2021 2,789,539.06 0.33 153.86 2,638,820.182,744,318.07

US TREASURY N/B NOTES
DTD 04/15/2021 0.375% 04/15/2024
91282CBV2 4,350,000.00 AA+ Aaa 11/10/2021 11/12/2021 4,319,414.06 0.67 7,528.85 4,178,039.284,324,252.51

US TREASURY NOTES
DTD 06/30/2017 2.000% 06/30/2024
912828XX3 1,225,000.00 AA+ Aaa 7/1/2019 7/3/2019 1,238,159.18 1.77 6,158.84 1,213,898.441,230,923.07

US TREASURY NOTES
DTD 07/31/2019 1.750% 07/31/2024
912828Y87 740,000.00 AA+ Aaa 12/2/2019 12/4/2019 742,572.66 1.67 2,146.41 728,437.50741,288.60

US TREASURY NOTES
DTD 08/15/2014 2.375% 08/15/2024
912828D56 575,000.00 AA+ Aaa 10/25/201 10/28/201 595,282.23 1.61 1,697.60 573,742.19585,031.20

US TREASURY NOTES
DTD 10/02/2017 2.125% 09/30/2024
9128282Y5 795,000.00 AA+ Aaa 12/2/2019 12/4/2019 811,334.77 1.68 46.16 788,167.93803,464.04

US TREASURY NOTES
DTD 10/31/2019 1.500% 10/31/2024
912828YM6 635,000.00 AA+ Aaa 2/4/2021 2/5/2021 663,773.44 0.28 3,999.45 619,422.69654,913.58

US TREASURY N/B NOTES
DTD 11/15/2021 0.750% 11/15/2024
91282CDH1 5,000,000.00 AA+ Aaa 11/10/2021 11/15/2021 4,991,406.25 0.81 14,191.99 4,778,906.004,992,480.47

US TREASURY NOTES
DTD 11/30/2017 2.125% 11/30/2024
9128283J7 1,480,000.00 AA+ Aaa 1/2/2020 1/6/2020 1,512,085.94 1.66 10,540.93 1,465,200.001,497,459.05

US TREASURY NOTES
DTD 01/31/2018 2.500% 01/31/2025
9128283V0 280,000.00 AA+ Aaa 2/3/2020 2/5/2020 295,301.56 1.36 1,160.22 279,912.50288,700.56

US TREASURY NOTES
DTD 04/30/2020 0.375% 04/30/2025
912828ZL7 3,375,000.00 AA+ Aaa 1/3/2022 1/5/2022 3,294,184.57 1.11 5,314.23 3,160,370.933,299,923.73

US TREASURY NOTES
DTD 05/31/2020 0.250% 05/31/2025
912828ZT0 2,000,000.00 AA+ Aaa 11/10/2021 11/12/2021 1,950,078.13 0.97 1,675.82 1,861,875.001,955,470.92

US TREASURY NOTES
DTD 07/31/2020 0.250% 07/31/2025
91282CAB7 2,380,000.00 AA+ Aaa 4/15/2021 4/16/2021 2,335,839.84 0.69 986.19 2,206,334.262,345,703.31

US TREASURY NOTES
DTD 09/30/2020 0.250% 09/30/2025
91282CAM3 620,000.00 AA+ Aaa 9/1/2021 9/3/2021 610,578.91 0.63 4.23 572,628.16611,908.50

US TREASURY NOTES
DTD 12/31/2020 0.375% 12/31/2025
91282CBC4 1,200,000.00 AA+ Aaa 1/29/2021 2/2/2021 1,197,421.88 0.42 1,131.22 1,107,937.441,198,030.10

US TREASURY NOTES
DTD 01/31/2021 0.375% 01/31/2026
91282CBH3 1,600,000.00 AA+ Aaa 11/1/2021 11/3/2021 1,550,500.00 1.12 994.48 1,474,249.921,555,258.39 30 96
Item8.
© PFM Asset Management LLC pfmam.com

CITY OF ESCONDIDO
For the Quarter Ended March 31, 2022
Portfolio Holdings
|
Security Type/Description
Dated Date/Coupon/Maturity CUSIP Par
S&P
Rating
Moody's
Rating
Settle
Date
Original
Cost
Trade
Date
YTM
at Cost
Accrued
Interest
Market
Value
Amortized
Cost
U.S. Treasury

US TREASURY NOTES
DTD 01/31/2021 0.375% 01/31/2026
91282CBH3 800,000.00 AA+ Aaa 10/1/2021 10/6/2021 784,500.00 0.83 497.24 737,124.96786,238.59

US TREASURY NOTES
DTD 01/31/2021 0.375% 01/31/2026
91282CBH3 1,280,000.00 AA+ Aaa 7/2/2021 7/7/2021 1,255,400.00 0.80 795.58 1,179,399.941,259,350.15

US TREASURY NOTES
DTD 01/31/2021 0.375% 01/31/2026
91282CBH3 645,000.00 AA+ Aaa 3/1/2021 3/3/2021 635,098.24 0.69 400.90 594,307.00637,271.66

US TREASURY NOTES
DTD 01/31/2021 0.375% 01/31/2026
91282CBH3 1,000,000.00 AA+ Aaa 9/1/2021 9/3/2021 986,445.31 0.69 621.55 921,406.20988,212.22

US TREASURY NOTES
DTD 02/28/2021 0.500% 02/28/2026
91282CBQ3 400,000.00 AA+ Aaa 3/31/2021 4/5/2021 392,359.38 0.90 173.91 369,812.48393,900.31

US TREASURY NOTES
DTD 02/28/2021 0.500% 02/28/2026
91282CBQ3 3,000,000.00 AA+ Aaa 11/10/2021 11/12/2021 2,923,710.94 1.11 1,304.35 2,773,593.602,930,518.12

US TREASURY N/B NOTES
DTD 03/31/2021 0.750% 03/31/2026
91282CBT7 2,000,000.00 AA+ Aaa 4/15/2021 4/16/2021 1,991,015.63 0.84 40.98 1,865,000.001,992,752.94

US TREASURY N/B NOTES
DTD 05/31/2021 0.750% 05/31/2026
91282CCF6 1,680,000.00 AA+ Aaa 6/2/2021 6/4/2021 1,676,325.00 0.79 4,223.08 1,562,400.001,676,932.12

US TREASURY N/B NOTES
DTD 05/31/2021 0.750% 05/31/2026
91282CCF6 2,400,000.00 AA+ Aaa 2/15/2022 2/17/2022 2,281,312.50 1.96 6,032.96 2,232,000.002,284,575.65

US TREASURY N/B NOTES
DTD 06/30/2021 0.875% 06/30/2026
91282CCJ8 2,050,000.00 AA+ Aaa 8/2/2021 8/4/2021 2,070,820.31 0.66 4,509.15 1,914,507.712,068,030.32

US TREASURY N/B NOTES
DTD 10/31/2021 1.125% 10/31/2026
91282CDG3 500,000.00 AA+ Aaa 11/1/2021 11/3/2021 497,675.78 1.22 2,361.88 470,312.50497,865.75

US TREASURY N/B NOTES
DTD 10/31/2021 1.125% 10/31/2026
91282CDG3 5,000,000.00 AA+ Aaa 11/10/2021 11/12/2021 4,984,375.00 1.19 23,618.79 4,703,125.004,985,580.90

US TREASURY N/B NOTES
DTD 10/31/2021 1.125% 10/31/2026
91282CDG3 400,000.00 AA+ Aaa 2/11/2022 2/14/2022 385,828.13 1.92 1,889.50 376,250.00386,207.15 70,240,000.00 70,268,543.01 149,756.03 67,395,985.49Security Type Sub-Total 0.86 70,163,119.29 Supranational

INTL BK OF RECON AND DEV NOTE
DTD 04/20/2021 0.126% 04/20/2023
459058JV6 2,750,000.00 AAA Aaa 4/15/2021 4/20/2021 2,744,912.50 0.22 1,549.63 2,698,572.252,747,323.84

INTER-AMERICAN DEVEL BK NOTES
DTD 04/24/2020 0.500% 05/24/2023
4581X0DM7 400,000.00 AAA Aaa 4/17/2020 4/24/2020 399,864.00 0.51 705.56 393,176.80399,949.47 31 97
Item8.
© PFM Asset Management LLC pfmam.com

CITY OF ESCONDIDO
For the Quarter Ended March 31, 2022
Portfolio Holdings
|
Security Type/Description
Dated Date/Coupon/Maturity CUSIP Par
S&P
Rating
Moody's
Rating
Settle
Date
Original
Cost
Trade
Date
YTM
at Cost
Accrued
Interest
Market
Value
Amortized
Cost
Supranational

INTL BK RECON & DEVELOP NOTES
DTD 11/24/2020 0.250% 11/24/2023
459058JM6 665,000.00 AAA Aaa 11/17/2020 11/24/2020 663,570.25 0.32 586.49 643,274.45664,213.96

INTER-AMERICAN DEVEL BK NOTES
DTD 09/23/2021 0.500% 09/23/2024
4581X0DZ8 1,530,000.00 AAA Aaa 9/15/2021 9/23/2021 1,528,867.80 0.52 170.00 1,456,783.381,529,064.08

INTER-AMERICAN DEVELOPMENT

BANK NOTES
DTD 01/16/2020 1.750% 03/14/2025
4581X0DK1 835,000.00 AAA Aaa 2/19/2021 2/23/2021 877,835.50 0.47 690.03 816,147.37866,200.45 6,180,000.00 6,215,050.05 3,701.71 6,007,954.25Security Type Sub-Total 0.36 6,206,751.80 Negotiable CD

NORDEA BANK ABP NEW YORK CERT
DEPOS
DTD 08/29/2019 1.850% 08/26/2022
65558TLL7 1,000,000.00 A-1+ P-1 8/27/2019 8/29/2019 1,000,000.00 1.84 1,644.44 1,002,775.001,000,000.00

DNB BANK ASA/NY LT CD
DTD 12/06/2019 2.040% 12/02/2022
23341VZT1 635,000.00 A-1+ P-1 12/4/2019 12/6/2019 635,000.00 2.03 4,318.00 636,743.71635,000.00

CREDIT SUISSE NEW YORK CERT
DEPOS
DTD 03/23/2021 0.590% 03/17/2023
22552G3C2 715,000.00 A-1 P-1 3/19/2021 3/23/2021 715,000.00 0.59 175.77 704,576.73715,000.00 2,350,000.00 2,350,000.00 6,138.21 2,344,095.44Security Type Sub-Total 1.52 2,350,000.00 Municipal

SAN FRAN COMM FAC DIST, CA TXBL

REV BNDS
DTD 11/09/2017 2.500% 09/01/2022
79772EAX7 350,000.00 NR NR 10/27/201 11/9/2017 348,355.00 2.61 729.17 351,722.00349,856.75

SAN FRAN COMM FAC DIST, CA TXBL

REV BNDS
DTD 11/09/2017 2.500% 09/01/2022
79772EAE9 380,000.00 NR NR 10/27/201 11/9/2017 377,362.80 2.66 791.67 381,869.60379,770.35

VENTURA CNTY CCD, CA TXBL GO
BONDS
DTD 10/31/2019 1.750% 08/01/2023
923040GT0 350,000.00 AA+ Aa1 10/3/2019 10/31/201 350,000.00 1.75 1,020.83 347,816.00350,000.00

TAMALPAIS UHSD, CA TXBL GO
BONDS
DTD 10/09/2019 1.971% 08/01/2023
874857KJ3 615,000.00 NR Aaa 9/20/2019 10/9/2019 615,000.00 1.97 2,020.28 615,282.90615,000.00 32 98
Item8.
© PFM Asset Management LLC pfmam.com

CITY OF ESCONDIDO
For the Quarter Ended March 31, 2022
Portfolio Holdings
|
Security Type/Description
Dated Date/Coupon/Maturity CUSIP Par
S&P
Rating
Moody's
Rating
Settle
Date
Original
Cost
Trade
Date
YTM
at Cost
Accrued
Interest
Market
Value
Amortized
Cost
Municipal

LONG BEACH CCD, CA TXBL GO
BONDS
DTD 10/23/2019 1.743% 08/01/2023
542411NH2 350,000.00 AA Aa2 10/9/2019 10/23/201 350,000.00 1.74 1,016.75 348,131.00350,000.00

WI DEPT OF TRANS TXBL REV BONDS
DTD 07/30/2020 0.624% 07/01/2024
977123X60 640,000.00 AAA NR 7/10/2020 7/30/2020 640,000.00 0.62 998.40 613,510.40640,000.00

CT ST TXBL GO BONDS
DTD 06/11/2020 1.998% 07/01/2024
20772KJW0 150,000.00 A+ Aa3 5/29/2020 6/11/2020 150,000.00 2.00 749.25 147,673.50150,000.00

SAN DIEGO CCD, CA TXBL GO BONDS
DTD 10/16/2019 2.046% 08/01/2024
797272QP9 245,000.00 AAA Aaa 9/18/2019 10/16/201 245,000.00 2.05 835.45 241,489.15245,000.00

VENTURA CNTY CCD, CA TXBL GO
BONDS
DTD 10/31/2019 1.800% 08/01/2024
923040GU7 490,000.00 AA+ Aa1 10/3/2019 10/31/201 490,000.00 1.80 1,470.00 479,318.00490,000.00

SAN JUAN USD, CA TXBL GO BONDS
DTD 10/29/2020 0.702% 08/01/2024
798306WN2 415,000.00 NR Aa2 10/16/202 10/29/202 415,000.00 0.70 485.55 396,495.15415,000.00

PALOMAR COMM COLL DIST, CA TXBL

GO BONDS
DTD 11/03/2020 0.794% 08/01/2024
697511FB4 440,000.00 AA Aa2 10/16/202 11/3/2020 440,000.00 0.79 582.27 419,927.20440,000.00

MD ST TXBL GO BONDS
DTD 08/05/2020 0.510% 08/01/2024
574193TQ1 375,000.00 AAA Aaa 7/23/2020 8/5/2020 374,895.00 0.52 318.75 358,728.75374,938.53

MS ST TXBL GO BONDS
DTD 08/06/2020 0.565% 11/01/2024
605581MZ7 120,000.00 AA Aa2 7/24/2020 8/6/2020 120,000.00 0.57 282.50 113,719.20120,000.00

NY ST URBAN DEV CORP TXBL REV
BONDS
DTD 12/23/2020 0.870% 03/15/2025
650036DT0 945,000.00 AA+ NR 12/16/202 12/23/202 945,000.00 0.87 365.40 885,361.05945,000.00

SAN DEIGO CNTY WTR AUTH, CA

TXBL REV BON
DTD 07/22/2020 0.743% 05/01/2025
797412DM2 480,000.00 AAA Aa2 7/9/2020 7/22/2020 480,000.00 0.74 1,486.00 450,518.40480,000.00

UNIV OF CAL TXBL REV BONDS
DTD 07/16/2020 0.883% 05/15/2025
91412HGE7 375,000.00 AA Aa2 7/10/2020 7/16/2020 375,000.00 0.88 1,250.92 353,392.50375,000.00

FL ST BOARD OF ADMIN TXBL REV
BONDS
DTD 09/16/2020 1.258% 07/01/2025
341271AD6 150,000.00 AA Aa3 9/3/2020 9/16/2020 150,994.50 1.12 471.75 142,416.00150,674.94

FL ST BOARD OF ADMIN TXBL REV
BONDS
DTD 09/16/2020 1.258% 07/01/2025
341271AD6 400,000.00 AA Aa3 9/3/2020 9/16/2020 400,000.00 1.26 1,258.00 379,776.00400,000.00 33 99
Item8.
© PFM Asset Management LLC pfmam.com

CITY OF ESCONDIDO
For the Quarter Ended March 31, 2022
Portfolio Holdings
|
Security Type/Description
Dated Date/Coupon/Maturity CUSIP Par
S&P
Rating
Moody's
Rating
Settle
Date
Original
Cost
Trade
Date
YTM
at Cost
Accrued
Interest
Market
Value
Amortized
Cost
Municipal

FL ST BOARD OF ADMIN TXBL REV
BONDS
DTD 09/16/2020 1.258% 07/01/2025
341271AD6 155,000.00 AA Aa3 9/3/2020 9/16/2020 156,095.85 1.11 487.48 147,163.20155,743.72

SAN RAMON VALLEY USD, CA TXBL

GO BONDS
DTD 10/20/2020 0.740% 08/01/2025
799408Z85 405,000.00 AA+ Aa1 10/2/2020 10/20/202 405,000.00 0.74 499.50 377,079.30405,000.00

LOS ANGELES CCD, CA TXBL GO
BONDS
DTD 11/10/2020 0.773% 08/01/2025
54438CYK2 410,000.00 AA+ Aaa 10/30/202 11/10/2020 410,000.00 0.77 528.22 379,606.70410,000.00

MN ST TXBL GO BONDS
DTD 08/25/2020 0.630% 08/01/2025
60412AVJ9 275,000.00 AAA Aa1 8/11/2020 8/25/2020 275,000.00 0.63 288.75 257,279.00275,000.00

CT ST TXBL GO BONDS
DTD 09/13/2018 3.743% 09/15/2025
20772KEW5 630,000.00 A+ Aa3 11/17/2020 11/19/2020 716,706.90 0.83 1,048.04 648,717.30692,186.72

LOS ANGELES USD, CA TXBL GO
BONDS
DTD 11/10/2021 1.455% 07/01/2026
544647FC9 310,000.00 NR Aa3 10/28/202 11/10/2021 310,000.00 1.46 1,127.63 288,064.40310,000.00 9,455,000.00 9,539,410.05 20,112.56 9,125,056.70Security Type Sub-Total 1.22 9,518,171.01 Federal Agency

FREDDIE MAC NOTES
DTD 04/20/2020 0.375% 04/20/2023
3137EAEQ8 660,000.00 AA+ Aaa 4/17/2020 4/20/2020 658,350.00 0.46 1,106.88 650,699.94659,421.37

FREDDIE MAC NOTES
DTD 05/07/2020 0.375% 05/05/2023
3137EAER6 760,000.00 AA+ Aaa 5/5/2020 5/7/2020 759,680.80 0.39 1,155.83 748,546.04759,883.48

FANNIE MAE NOTES
DTD 07/10/2020 0.250% 07/10/2023
3135G05G4 570,000.00 AA+ Aaa 7/8/2020 7/10/2020 568,774.50 0.32 320.63 557,205.21569,479.58

FREDDIE MAC NOTES
DTD 08/21/2020 0.250% 08/24/2023
3137EAEV7 275,000.00 AA+ Aaa 9/1/2020 9/3/2020 274,994.50 0.25 70.66 267,984.48274,997.41

FANNIE MAE NOTES
DTD 09/14/2018 2.875% 09/12/2023
3135G0U43 1,500,000.00 AA+ Aaa 4/1/2020 4/3/2020 1,625,340.00 0.43 2,276.04 1,515,565.501,552,748.50

FREDDIE MAC NOTES
DTD 12/04/2020 0.250% 12/04/2023
3137EAFA2 300,000.00 AA+ Aaa 12/2/2020 12/4/2020 299,703.00 0.28 243.75 290,178.90299,834.01

FREDDIE MAC NOTES
DTD 02/14/2020 1.500% 02/12/2025
3137EAEP0 790,000.00 AA+ Aaa 3/3/2020 3/4/2020 813,020.60 0.90 1,612.92 767,849.19803,358.58 34 100
Item8.
© PFM Asset Management LLC pfmam.com

CITY OF ESCONDIDO
For the Quarter Ended March 31, 2022
Portfolio Holdings
|
Security Type/Description
Dated Date/Coupon/Maturity CUSIP Par
S&P
Rating
Moody's
Rating
Settle
Date
Original
Cost
Trade
Date
YTM
at Cost
Accrued
Interest
Market
Value
Amortized
Cost
Federal Agency

FANNIE MAE NOTES
DTD 08/27/2020 0.375% 08/25/2025
3135G05X7 2,000,000.00 AA+ Aaa 9/1/2020 9/3/2020 1,992,920.00 0.45 750.00 1,859,606.001,995,160.51

FREDDIE MAC NOTES
DTD 09/25/2020 0.375% 09/23/2025
3137EAEX3 1,150,000.00 AA+ Aaa 9/23/2020 9/25/2020 1,146,538.50 0.44 95.83 1,067,508.201,147,587.96

FANNIE MAE NOTES
DTD 11/12/2020 0.500% 11/07/2025
3135G06G3 360,000.00 AA+ Aaa 11/9/2020 11/12/2020 358,711.20 0.57 720.00 335,083.68359,068.61

FANNIE MAE NOTES
DTD 11/12/2020 0.500% 11/07/2025
3135G06G3 1,125,000.00 AA+ Aaa 12/2/2020 12/4/2020 1,122,828.75 0.54 2,250.00 1,047,136.501,123,411.69 9,490,000.00 9,620,861.85 10,602.54 9,107,363.64Security Type Sub-Total 0.47 9,544,951.70

FDIC CD

CAPITAL ONE BANK USA NA CD
DTD 06/01/2017 2.400% 06/01/2022
1404203C2 245,000.00 NR NR 5/25/2017 6/1/2017 245,000.00 2.40 1,949.26 245,876.37245,000.00

GOLDMAN SACHS GROUP INC CD
DTD 06/21/2017 2.350% 06/21/2022
38148PKX4 245,000.00 NR NR 6/13/2017 6/21/2017 245,000.00 2.35 1,593.17 246,125.04245,000.00

BENEFICIAL BANK CD
DTD 10/18/2017 2.150% 10/18/2022
08173QBX3 245,000.00 NR NR 9/27/2017 10/18/201 245,000.00 2.15 2,381.20 247,041.59245,000.00

FOCUS BANK CD
DTD 11/24/2017 2.200% 11/24/2022
34415LAP6 245,000.00 NR NR 11/14/2017 11/24/2017 245,000.00 2.20 1,890.19 247,373.81245,000.00 980,000.00 980,000.00 7,813.82 986,416.81Security Type Sub-Total 2.27 980,000.00 Corporate

UNITEDHEALTH GROUP INC CORP
NOTES
DTD 02/28/2013 2.875% 03/15/2023
91324PCC4 640,000.00 A+ A3 11/20/2019 11/22/2019 656,358.40 2.07 817.78 645,509.12644,708.62

BANK OF NY MELLON CORP NOTES
DTD 04/30/2018 3.500% 04/28/2023
06406RAG2 1,410,000.00 A A1 4/24/2019 4/26/2019 1,445,376.90 2.83 20,973.75 1,429,163.311,419,478.98

CHEVRON CORP CORPORATE NOTES
DTD 05/11/2020 1.141% 05/11/2023
166764BV1 200,000.00 AA- Aa2 5/7/2020 5/11/2020 200,000.00 1.14 887.44 197,734.40200,000.00

PACCAR FINANCIAL CORP

CORPORATE NOTES
DTD 06/08/2020 0.800% 06/08/2023
69371RQ82 360,000.00 A+ A1 6/1/2020 6/8/2020 359,499.60 0.85 904.00 354,197.16359,802.12 35 101
Item8.
© PFM Asset Management LLC pfmam.com

CITY OF ESCONDIDO
For the Quarter Ended March 31, 2022
Portfolio Holdings
|
Security Type/Description
Dated Date/Coupon/Maturity CUSIP Par
S&P
Rating
Moody's
Rating
Settle
Date
Original
Cost
Trade
Date
YTM
at Cost
Accrued
Interest
Market
Value
Amortized
Cost
Corporate

AMERICAN EXPRESS CREDIT CORP

NOTES (CALL
DTD 08/03/2018 3.700% 08/03/2023
025816BW8 800,000.00 BBB+ A2 4/23/2019 4/26/2019 821,480.00 3.02 4,768.89 814,947.20806,434.17

TOYOTA MOTOR CREDIT CORP CORP
NOTES
DTD 10/18/2016 2.250% 10/18/2023
89236TDK8 1,090,000.00 A+ A1 2/5/2020 2/7/2020 1,107,374.60 1.80 11,104.38 1,086,290.731,097,276.98

CATERPILLAR FINANCIAL SERVICES

CORP NOTE
DTD 11/26/2013 3.750% 11/24/2023
14912L5X5 790,000.00 A A2 5/8/2019 5/10/2019 823,243.20 2.76 10,451.04 807,285.99802,062.93

ABBOTT LABORATORIES CORP
NOTES
DTD 11/22/2016 3.400% 11/30/2023
002824BE9 825,000.00 AA- A1 5/10/2019 5/14/2019 846,441.75 2.79 9,427.92 837,529.28832,330.40

BB&T CORPORATION NOTES
(CALLABLE)
DTD 12/06/2018 3.750% 12/06/2023
05531FBF9 800,000.00 A- A3 4/23/2019 4/25/2019 824,928.00 3.02 9,583.33 814,906.40808,791.03

BANK OF AMERICA CORP NOTE
DTD 01/21/2014 4.125% 01/22/2024
06051GFB0 1,395,000.00 A- A2 4/23/2019 4/25/2019 1,456,477.65 3.12 11,029.22 1,431,348.121,418,448.77

CHARLES SCHWAB CORP NOTES
DTD 10/31/2018 3.550% 02/01/2024
808513AY1 815,000.00 A A2 4/25/2019 4/29/2019 843,321.25 2.76 4,822.08 827,557.52825,927.87

COMCAST CORP (CALLABLE)

CORPORATE NOTES
DTD 10/05/2018 3.700% 04/15/2024
20030NCR0 635,000.00 A- A3 5/7/2020 5/11/2020 695,623.45 1.20 10,833.81 648,925.55665,829.87

MORGAN STANLEY CORP NOTES
DTD 04/28/2014 3.875% 04/29/2024
61746BDQ6 745,000.00 BBB+ A1 7/19/2019 7/23/2019 788,604.85 2.56 12,189.03 759,846.36763,998.90 AMAZON.COM INC CORPORATE
NOTES
DTD 05/12/2021 0.450% 05/12/2024
023135BW5 300,000.00 AA A1 5/10/2021 5/12/2021 299,562.00 0.50 521.25 288,102.00299,691.48

US BANCORP NOTES (CALLABLE)
DTD 07/29/2019 2.400% 07/30/2024
91159HHX1 845,000.00 A+ A2 7/30/2019 8/1/2019 844,247.95 2.42 3,436.33 839,271.75844,649.32

UNILEVER CAPITAL CORP
(CALLABLE) CORPORA
DTD 08/12/2021 0.626% 08/12/2024
904764BN6 160,000.00 A+ A1 8/9/2021 8/12/2021 160,000.00 0.63 136.33 152,448.64160,000.00

BMW US CAPITAL LLC CORPORATE
NOTES
DTD 08/12/2021 0.750% 08/12/2024
05565EBU8 215,000.00 A A2 8/9/2021 8/12/2021 214,980.65 0.75 219.48 205,073.67214,984.75 36 102
Item8.
© PFM Asset Management LLC pfmam.com

CITY OF ESCONDIDO
For the Quarter Ended March 31, 2022
Portfolio Holdings
|
Security Type/Description
Dated Date/Coupon/Maturity CUSIP Par
S&P
Rating
Moody's
Rating
Settle
Date
Original
Cost
Trade
Date
YTM
at Cost
Accrued
Interest
Market
Value
Amortized
Cost
Corporate

WALT DISNEY COMPANY/THE
DTD 09/06/2019 1.750% 08/30/2024
254687FK7 845,000.00 BBB+ A2 9/3/2019 9/6/2019 841,552.40 1.84 1,273.37 829,456.23843,329.24

PNC BANK NA CORP NOTES
(CALLABLE)
DTD 11/01/2019 2.200% 11/01/2024
693475AY1 600,000.00 A- A3 11/5/2019 11/8/2019 599,802.00 2.21 5,500.00 589,992.60599,897.19

GOLDMAN SACHS GROUP INC

CORPORATE NOTES
DTD 01/24/2022 1.757% 01/24/2025
38141GZH0 400,000.00 BBB+ A2 1/19/2022 1/24/2022 400,000.00 1.76 1,307.99 389,678.40400,000.00

LOCKHEED MARTIN CORP NOTES
(CALLABLE)
DTD 02/20/2015 2.900% 03/01/2025
539830BE8 235,000.00 A- A3 2/23/2021 2/25/2021 253,767.10 0.87 567.92 235,974.08248,307.58

AMERICAN EXPRESS CO CORP

NOTES (CALLABLE
DTD 03/04/2022 2.250% 03/04/2025
025816CQ0 350,000.00 BBB+ A2 3/1/2022 3/4/2022 349,646.50 2.29 590.63 343,574.35349,655.53

ROCHE HOLDINGS INC (CALLABLE)

CORPORATE
DTD 03/10/2022 2.132% 03/10/2025
771196BT8 1,295,000.00 AA Aa3 3/3/2022 3/10/2022 1,295,000.00 2.13 1,610.55 1,269,077.991,295,000.00

BMW US CAPITAL LLC CORP NOTES
(CALLABLE)
DTD 04/09/2020 3.900% 04/09/2025
05565EBK0 575,000.00 A A2 8/12/2021 8/16/2021 632,005.50 1.12 10,714.17 587,165.85622,015.30

HOME DEPOT INC (CALLABLE)

CORPORATE NOTE
DTD 03/28/2022 2.700% 04/15/2025
437076CM2 105,000.00 A A2 3/24/2022 3/28/2022 104,816.25 2.76 23.63 104,701.80104,816.91

CITIGROUP INC CORPORATE NOTES
DTD 05/04/2021 0.981% 05/01/2025
172967MX6 255,000.00 BBB+ A3 4/27/2021 5/4/2021 255,000.00 0.98 1,042.31 242,934.68255,000.00

CITIGROUP INC CORPORATE NOTES
DTD 05/04/2021 0.981% 05/01/2025
172967MX6 270,000.00 BBB+ A3 4/28/2021 5/4/2021 270,715.50 0.91 1,103.63 257,224.95270,552.57

CHEVRON CORP (CALLABLE) NOTES
DTD 05/11/2020 1.554% 05/11/2025
166764BW9 425,000.00 AA- Aa2 5/13/2020 5/15/2020 427,108.00 1.45 2,568.42 409,478.58426,301.03

GENERAL DYNAMICS CORP
(CALLABLE) CORP NO
DTD 05/11/2018 3.500% 05/15/2025
369550BG2 700,000.00 A- A3 3/4/2021 3/8/2021 772,884.00 0.96 9,255.56 711,671.10753,570.73

JPMORGAN CHASE & CO

CORPORATE NOTES
DTD 06/01/2021 0.824% 06/01/2025
46647PCH7 585,000.00 A- A2 5/24/2021 6/1/2021 585,000.00 0.82 1,606.80 557,549.46585,000.00 37 103
Item8.
© PFM Asset Management LLC pfmam.com

CITY OF ESCONDIDO
For the Quarter Ended March 31, 2022
Portfolio Holdings
|
Security Type/Description
Dated Date/Coupon/Maturity CUSIP Par
S&P
Rating
Moody's
Rating
Settle
Date
Original
Cost
Trade
Date
YTM
at Cost
Accrued
Interest
Market
Value
Amortized
Cost
Corporate

BRISTOL-MYERS SQUIBB CO

CORPORATE NOTES
DTD 11/13/2020 0.750% 11/13/2025
110122DN5 353,000.00 A+ A2 6/17/2021 6/21/2021 349,484.12 0.98 1,014.88 328,363.42350,105.86

BRISTOL-MYERS SQUIBB CO

CORPORATE NOTES
DTD 11/13/2020 0.750% 11/13/2025
110122DN5 250,000.00 A+ A2 6/23/2021 6/25/2021 247,857.50 0.95 718.75 232,552.00248,231.97

CITIGROUP INC CORP NOTES
(CALLABLE)
DTD 01/25/2022 2.014% 01/25/2026
17327CAN3 245,000.00 BBB+ A3 1/18/2022 1/25/2022 245,000.00 2.01 904.62 235,795.11245,000.00

GOLDMAN SACHS GROUP INC

CORPORATE NOTES
DTD 02/12/2021 0.855% 02/12/2026
38141GXS8 650,000.00 BBB+ A2 2/12/2021 2/17/2021 651,326.00 0.81 756.44 605,396.35651,028.91

MORGAN STANLEY CORP NOTES
(CALLABLE)
DTD 02/18/2022 2.630% 02/18/2026
61747YEM3 310,000.00 BBB+ A1 2/16/2022 2/18/2022 310,000.00 2.63 973.83 300,802.30310,000.00

JPMORGAN CHASE & CO CORP NOTE
DTD 03/13/2020 2.005% 03/13/2026
46647PBH8 750,000.00 A- A2 10/1/2021 10/6/2021 770,182.50 1.38 751.88 722,698.50767,976.01

ASTRAZENECA FINANCE LLC
(CALLABLE) CORP
DTD 05/28/2021 1.200% 05/28/2026
04636NAA1 700,000.00 A- A3 7/15/2021 7/19/2021 700,742.00 1.18 2,870.00 651,954.10700,633.08

AMERICAN HONDA FINANCE

CORPORATE NOTES
DTD 09/09/2021 1.300% 09/09/2026
02665WDZ1 1,000,000.00 A- A3 11/29/2021 12/1/2021 985,630.00 1.61 794.44 925,170.00986,627.57

CATERPILLAR FINL SERVICE

CORPORATE NOTES
DTD 01/10/2022 1.700% 01/08/2027
14913R2U0 800,000.00 A A2 1/10/2022 1/12/2022 794,608.00 1.84 3,060.00 756,873.60794,841.79

JOHN DEERE CAPITAL CORP

CORPORATE NOTES
DTD 01/10/2022 1.700% 01/11/2027
24422EWA3 800,000.00 A A2 1/11/2022 1/13/2022 795,488.00 1.82 3,060.00 755,747.20795,680.95

TARGET CORP CORPORATE NOTES
DTD 01/24/2022 1.950% 01/15/2027
87612EBM7 180,000.00 A A2 1/19/2022 1/24/2022 179,694.00 1.99 653.25 173,908.26179,705.28

TARGET CORP CORPORATE NOTES
DTD 01/24/2022 1.950% 01/15/2027
87612EBM7 650,000.00 A A2 1/21/2022 1/25/2022 651,423.50 1.90 2,358.96 628,002.05651,371.76

IBM CORP CORPORATE NOTES
DTD 02/09/2022 2.200% 02/09/2027
459200KM2 1,000,000.00 A- A3 2/23/2022 2/25/2022 987,660.00 2.47 3,177.78 964,242.00987,898.62 38 104
Item8.
© PFM Asset Management LLC pfmam.com

CITY OF ESCONDIDO
For the Quarter Ended March 31, 2022
Portfolio Holdings
|
Security Type/Description
Dated Date/Coupon/Maturity CUSIP Par
S&P
Rating
Moody's
Rating
Settle
Date
Original
Cost
Trade
Date
YTM
at Cost
Accrued
Interest
Market
Value
Amortized
Cost
Corporate

HONEYWELL INTERNATIONAL
(CALLABLE) CORP
DTD 08/16/2021 1.100% 03/01/2027
438516CE4 700,000.00 A A2 3/1/2022 3/3/2022 667,296.00 2.09 641.67 643,607.30667,815.96 27,053,000.00 27,511,209.12 171,007.54 26,593,729.46Security Type Sub-Total 2.00 27,254,780.03 Agency CMBS
FNA 2013-M7 A2
DTD 05/01/2013 2.280% 12/01/2022
3136AEGQ4 161,294.35 AA+ Aaa 9/4/2019 9/9/2019 163,407.47 1.86 306.46 161,378.88161,731.67 FHMS K724 A2
DTD 01/01/2017 3.062% 11/01/2023
3137BTU25 400,000.00 AA+ Aaa 1/28/2021 2/2/2021 427,015.63 0.58 1,020.67 402,918.30415,610.83

FANNIEMAE-ACES
DTD 04/01/2014 3.346% 03/01/2024
3136AJB54 440,240.59 AA+ Aaa 12/13/201 12/18/201 461,633.54 2.14 1,227.54 445,095.94449,996.33 FHMS KJ27 A1
DTD 11/01/2019 2.092% 07/01/2024
3137FQ3V3 59,120.49 AA+ Aaa 11/20/2019 11/26/2019 59,119.08 2.09 103.07 59,107.8959,119.80 FHMS K043 A2
DTD 03/01/2015 3.062% 12/01/2024
3137BGK24 665,000.00 AA+ Aaa 3/19/2020 3/25/2020 697,938.28 1.95 1,696.86 670,164.98683,758.66 1,725,655.43 1,809,114.00 4,354.60 1,738,665.99Security Type Sub-Total 1.68 1,770,217.29 ABS
NALT 2020-B A3
DTD 09/29/2020 0.430% 10/16/2023
65480EAD3 217,376.81 AAA Aaa 9/22/2020 9/29/2020 217,354.44 0.43 41.54 216,482.20217,365.48 MBALT 2020-B A3
DTD 09/23/2020 0.400% 11/15/2023
58769EAC2 90,000.00 AAA NR 9/15/2020 9/23/2020 89,995.44 0.40 16.00 89,454.0289,997.64 TLOT 2021-A A3
DTD 04/21/2021 0.390% 04/22/2024
89238EAC0 235,000.00 AAA Aaa 4/13/2021 4/21/2021 234,972.58 0.39 28.00 230,681.29234,981.20 BMWLT 2021-1 A4
DTD 03/10/2021 0.370% 07/25/2024
05591RAD6 160,000.00 AAA Aaa 3/2/2021 3/10/2021 159,993.65 0.37 9.87 156,072.42159,995.64 TAOT 2020-C A3
DTD 07/27/2020 0.440% 10/15/2024
89237VAB5 249,294.02 AAA Aaa 7/21/2020 7/27/2020 249,274.83 0.44 48.75 246,828.20249,282.46 HALST 2021-A A4
DTD 01/20/2021 0.420% 12/16/2024
44891TAD8 140,000.00 AAA Aaa 1/12/2021 1/20/2021 139,988.35 0.42 26.13 137,119.29139,991.91 39 105
Item8.
© PFM Asset Management LLC pfmam.com

CITY OF ESCONDIDO
For the Quarter Ended March 31, 2022
Portfolio Holdings
|
Security Type/Description
Dated Date/Coupon/Maturity CUSIP Par
S&P
Rating
Moody's
Rating
Settle
Date
Original
Cost
Trade
Date
YTM
at Cost
Accrued
Interest
Market
Value
Amortized
Cost
ABS
CARMX 2020-3 A3
DTD 07/22/2020 0.620% 03/17/2025
14315FAD9 175,573.16 AAA NR 7/14/2020 7/22/2020 175,543.06 0.62 48.38 174,035.61175,554.01 GMCAR 2020-3 A3
DTD 08/19/2020 0.450% 04/16/2025
362590AC5 273,180.81 NR Aaa 8/11/2020 8/19/2020 273,118.31 0.46 51.22 269,818.58273,139.99 GMALT 2021-3 A4
DTD 08/18/2021 0.500% 07/21/2025
36262XAD6 225,000.00 AAA NR 8/10/2021 8/18/2021 224,991.88 0.50 34.38 214,403.96224,993.16 KCOT 2021-1A A3
DTD 04/14/2021 0.620% 08/15/2025
50117TAC5 155,000.00 NR Aaa 4/6/2021 4/14/2021 154,968.29 0.62 42.71 148,817.52154,975.34 HART 2021-A A3
DTD 04/28/2021 0.380% 09/15/2025
44933LAC7 220,000.00 AAA NR 4/20/2021 4/28/2021 219,976.86 0.38 37.16 214,346.55219,981.75 KCOT 2021-2A A3
DTD 07/28/2021 0.560% 11/17/2025
50117XAE2 370,000.00 NR Aaa 7/20/2021 7/28/2021 369,986.05 0.56 92.09 351,078.80369,988.24 HAROT 2021-3 A3
DTD 08/25/2021 0.410% 11/18/2025
43815EAC8 305,000.00 AAA NR 8/17/2021 8/25/2021 304,995.55 0.41 45.16 294,043.73304,996.18 CARMX 2021-1 A3
DTD 01/27/2021 0.340% 12/15/2025
14316NAC3 120,000.00 AAA NR 1/20/2021 1/27/2021 119,976.29 0.34 18.13 117,059.28119,981.99 HAROT 2021-4 A3
DTD 11/24/2021 0.880% 01/21/2026
43815GAC3 285,000.00 NR Aaa 11/16/2021 11/24/2021 284,939.92 0.89 69.67 275,979.15284,944.98 CARMX 2021-2 A3
DTD 04/21/2021 0.520% 02/17/2026
14314QAC8 300,000.00 AAA NR 4/13/2021 4/21/2021 299,935.35 0.52 69.33 293,064.12299,948.00 CARMX 2021-3 A3
DTD 07/28/2021 0.550% 06/15/2026
14317DAC4 610,000.00 AAA Aaa 7/21/2021 7/28/2021 609,899.66 0.55 149.11 591,796.69609,913.56 FORDO 2022-A A3
DTD 01/24/2022 1.290% 06/15/2026
345286AC2 255,000.00 AAA NR 1/19/2022 1/24/2022 254,969.71 1.29 146.20 245,596.77254,970.98 WOART 2021-D A3
DTD 11/03/2021 0.810% 10/15/2026
98163KAC6 350,000.00 AAA NR 10/26/202 11/3/2021 349,952.33 0.81 126.00 336,245.21349,956.26 HART 2022-A A3
DTD 03/16/2022 2.220% 10/15/2026
448977AD0 720,000.00 AAA NR 3/9/2022 3/16/2022 719,972.28 2.22 666.00 711,160.34719,972.54 COMET 2021-A3 A3
DTD 11/30/2021 1.040% 11/16/2026
14041NFY2 715,000.00 AAA NR 11/18/2021 11/30/2021 714,901.47 1.04 330.49 684,676.92714,908.10 40 106
Item8.
© PFM Asset Management LLC pfmam.com

CITY OF ESCONDIDO
For the Quarter Ended March 31, 2022
Portfolio Holdings
|
Security Type/Description
Dated Date/Coupon/Maturity CUSIP Par
S&P
Rating
Moody's
Rating
Settle
Date
Original
Cost
Trade
Date
YTM
at Cost
Accrued
Interest
Market
Value
Amortized
Cost
ABS
GMCAR 2022-1 A3
DTD 01/19/2022 1.260% 11/16/2026
380146AC4 285,000.00 AAA NR 1/11/2022 1/19/2022 284,975.23 1.26 149.63 277,389.53284,976.24 6,455,424.80 6,454,681.53 2,245.95 6,276,150.18Security Type Sub-Total 0.84 6,454,815.65 133,929,080.23 134,748,869.61 375,732.96 129,575,417.96Managed Account Sub Total Securities Sub Total
Accrued Interest
$133,929,080.23 $134,748,869.61 $375,732.96 $129,575,417.96 $375,732.96
134,242,806.77
$134,242,806.77

1.10 1.10%
Total Investments $129,951,150.92
41 107
Item8.
© PFM Asset Management LLC pfmam.com

CITY OF ESCONDIDO
For the Quarter Ended March 31, 2022
Appendix
|
Important Disclosures
This material is for general information purposes only and is not intended to provide specific advice or a specific recommendation, as it was prepared without regard to any specific objectives or financial circumstances.

Investment advisory services are provided by PFM Asset Management LLC ("PFMAM"), an investment adviser registered with the U.S. Securities and Exchange Commission and a subsidiary of U.S. Bancorp Asset Management, Inc. ("USBAM"). USBAM is a subsidiary of U.S. Bank National Association ("U.S. Bank"). U.S. Bank is a separate entity and subsidiary of U.S. Bancorp. U.S. Bank is not responsible for and does not guarantee the products, services or performance of PFMAM. The information contained is not an offer to purchase or sell any securities. Additional applicable regulatory information is available upon request.

PFMAM professionals have exercised reasonable professional care in the preparation of this performance report. Information in this report is obtained from sources external to PFMAM and is generally believed to be reliable and available to the public; however, we cannot guarantee its accuracy, completeness or suitability. We rely on the client's custodian for security holdings and market values. Transaction dates reported by the custodian may differ from money manager statements. While efforts are made to ensure the data contained herein is accurate and complete, we disclaim all responsibility for any errors that may occur. References to particular issuers are for illustrative purposes only and are not intended to be recommendations or advice regarding such issuers. Fixed income manager and index characteristics are gathered from external sources. When average credit quality is not available, it is estimated by taking the market value weights of individual credit tiers on the portion of the strategy rated by a NRSRO.

It is not possible to invest directly in an index. The index returns shown throughout this material do not represent the results of actual trading of investor assets.

Third-party providers maintain the indices shown and calculate the index levels and performance shown or discussed. Index returns do not reflect payment of any sales charges or fees an investor would pay to purchase the securities they represent. The imposition of these fees and charges would cause investment performance to be lower than the performance shown.

The views expressed within this material constitute the perspective and judgment of PFMAM at the time of distribution and are subject to change. Any forecast, projection, or prediction of the market, the economy, economic trends, and equity or fixed-income markets are based upon certain assumptions and current opinion as of the date of issue and are also subject to change. Some, but not all assumptions are noted in the report. Assumptions may or may not be proven correct as actual events occur, and results may depend on events outside of your or our control. Changes in assumptions may have a material effect on results. Opinions and data presented are not necessarily indicative of future events or expected performance.

For more information regarding PFMAM's services or entities, please visit www.pfmam.com. © 2022 PFM Asset Management LLC. Further distribution is not permitted without prior written consent. 42 108
Item8.
© PFM Asset Management LLC pfmam.com

CITY OF ESCONDIDO
For the Quarter Ended March 31, 2022
Appendix
|
Important Disclosures
Market values that include accrued interest are derived from closing bid prices as of the last business day of the month as supplied by Refinitiv, Bloomberg, or Telerate. Where prices are not available from generally recognized sources, the securities are priced using a yield-based matrix system to arrive at an estimated market value.

In accordance with generally accepted accounting principles, information is presented on a trade date basis; forward settling purchases are included in the monthly balances, and forward settling sales are excluded.

Performance is presented in accordance with the CFA Institute's Global Investment Performance Standards (GIPS). Unless otherwise noted, performance is shown gross of fees. Quarterly returns are presented on an unannualized basis. Returns for periods greater than one year are presented on an annualized basis. Past performance is not indicative of future returns.

Bank of America/Merrill Lynch Indices provided by Bloomberg Financial Markets.

Money market fund/cash balances are included in performance and duration computations.

Standard & Poor's is the source of the credit ratings. Distribution of credit rating is exclusive of money market fund/LGIP holdings.

Callable securities in the portfolio are included in the maturity distribution analysis to their stated maturity date, although, they may be called prior to maturity.

MBS maturities are represented by expected average life. 43 109
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CITY OF ESCONDIDO
For the Quarter Ended March 31, 2022
Appendix
|
Glossary
Accrued Interest: Interest that is due on a bond or other fixed income security since the last interest payment was made.

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

Amortized Cost: The original cost of the principal of the security is adjusted for the amount of the periodic reduction of any discount or premium from the purchase date until the date of the report. Discount or premium with respect to short-term securities (those with less than one year to maturity at time of issuance) is amortized on a straight line basis. Such discount or premium with respect to longer-term securities is amortized using the constant yield basis.

Asset-Backed Security: A financial instrument collateralized by an underlying pool of assets – usually ones that generate a cash flow from debt, such as loans, leases, credit card balances, and receivables.

Bankers’ Acceptance: 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 insurer.

Commercial Paper: An unsecured obligation issued by a corporation or bank to finance its short-term credit needs, such as accounts receivable and inventory.

Contribution to Total Return: The weight of each individual security multiplied by its return, then summed for each sector to determine how much each sector added or subtracted from the overall portfolio performance.

Effective Duration: A measure of the sensitivity of a security’s price to a change in interest rates, stated in years.

Effective Yield: The total yield an investor receives in relation to the nominal yield or coupon of a bond. Effective yield takes into account the power of compounding on investment returns, while nominal yield does not.

FDIC: Federal Deposit Insurance Corporation. A federal agency that insures bank deposits to a specified amount.

Interest Rate: Interest per year divided by principal amount and expressed as a percentage.

Market Value: The value that would be received or paid for an investment in an orderly transaction between market participants at the measurement date.

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

Negotiable Certificates of Deposit: A CD with a very large denomination, usually $1 million or more, that can be traded in secondary markets.

Par Value: The nominal dollar face amount of a security.

Pass-through Security: A security representing pooled debt obligations that passes income from debtors to its shareholders. The most common type is the mortgage-backed security.
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CITY OF ESCONDIDO
For the Quarter Ended March 31, 2022
Appendix
|
Glossary
Repurchase Agreements: A holder of securities sells these securities to an investor with an agreement to repurchase them at a fixed price on a fixed date.

Settle Date: The date on which the transaction is settled and monies/securities are exchanged. If the settle date of the transaction (i.e., coupon payments and maturity proceeds) occurs on a non-business day, the funds are exchanged on the next business day.

Supranational: A multinational union or association in which member countries cede authority and sovereignty on at least some internal matters to the group, whose decisions are binding on its members.

Trade Date: The date on which the transaction occurred; however, the final consummation of the security transaction and payment has not yet taken place.

Unsettled Trade: A trade which has been executed; however, the final consummation of the security transaction and payment has not yet taken place.

U.S. Treasury: The department of the U.S. government that issues Treasury securities.

Yield: The rate of return based on the current market value, the annual interest receipts, maturity value, and the time period remaining until maturity, stated as a percentage on an annualized basis.

YTM at Cost: The yield to maturity at cost is the expected rate of return based on the original cost, the annual interest receipts, maturity value, and the time period from purchase date to maturity, stated as a percentage on an annualized basis.

YTM at Market: The yield to maturity at market is the rate of return based on the current market value, the annual interest receipts, maturity value, and the time period remaining until maturity, stated as a percentage on an annualized basis. 45 111
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STAFF REPORT

May 11, 2022
File Number 0490-30

SUBJECT

RENEW SIGNATURE AUTHORIZATIONS FOR INVESTING CITY FUNDS IN THE LOCAL AGENCY

INVESTMENT FUND

DEPARTMENT
City Treasurer

RECOMMENDATION
Request the City Council adopt Resolution No. 2022-53, renewing the authorization to invest monies not required for immediate cash flow needs in the Local Agency Investment Fund ( “LAIF”) which is administered by the State Treasury in accordance with Section 16429.1 of California Government Code.

Staff Recommendation: Receive and File (City Treasurer: Douglas Shultz) Presenter: Douglas Shultz, City Treasurer

PREVIOUS ACTION
In 1977, the City Council adopted Resolution No. 1977-23, which gave the City Treasurer authorization to participate in the LAIF for investment of surplus City funds. Council most recently adopted Resolution 2021-111 renewing authorization to invest monies in the LAIF by updating the list of authorized users.

BACKGROUND
The LAIF is a voluntary program created by State statu te in 1977 as an investment alternative for California’s local governments. This program is administered by the State Treasurer’s Office with monies from the LAIF invested with State monies through the Pooled Money Investment Account (“PMIA”). This program offers local agencies the opportunity to participate in a major portfolio that invests billions of dollars using the investment ex pertise of the State Treasurer’s Office investment staff. LAIF has grown from 293 participants and $468 million in 1977 to 2,3 94 participants and $35.9 billion as of March 31, 2022.

At the end of each calendar quarter, all interest earned in the Fund is distributed by LAIF to the participating governmental agencies directly proportionate to their respective amounts deposited in the Fund and the length of time such amounts remained therein. Prior to the distribution, an amount equal to the reasonable costs of making the investments, not to exceed one-half of 1 percent of the earnings of the Fund, are deducted from the interest earnings. A statement is sent to all fund participants showing balances and transactions for the month.
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As of March 31, 2 022, the City had $ 50.5 million invested in LAIF. Investing in LAIF is an authorized investment in the City’s Investment Policy that meets the investment objective of safety. Under Federal Law, the State of California cannot declare bankruptcy, specifica lly Section 16429.3 of the State Government Code states that money’s placed with the Treasurer for deposit in the LAIF shall not be subject to impound or seizure by any State official or State agency. California Government Code Section 16429.4 was added in 2002 and states that the State cannot withhold LAIF monies if they fail to adopt a budget by the June 30th deadline.

Due to staff turnover and title changes staff is requesting the approval of Resolution 202 2-53 which will renew authorization to invest monies not required for immediate cash flow needs in the LAIF and designate those authorized to complete such transactions.

RESOLUTIONS
a. Resolution 2022-53

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RESOLUTION NO. 2022-53

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ESCONDIDO, CALIFORNIA, AUTHORIZING INVESTMENT

OF MONIES IN THE LOCAL AGENCY INVESTMENT FUND

WHEREAS, The Local Agency Investment Fund is established in the State Treasury under Government Code section 16429.1 for the deposit of money of a local agency for purposes of investment by the State Treasurer; and
WHEREAS, the City Council of the City of Escondido hereby finds that the deposit and withdrawal of money in the Local Agency Investment Fund in accordance with Government Code section 16429.1 for the purpose of investment as provided therein is in the best interests of the City of Escondido.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Escondido, California, as follows:

1. That the above recitations are true.

2. That the City Council does hereby authorize the deposit and withdrawal of City of Escondido monies in the Local Agency Investment Fund in the State Treasury in accordance with the provisions of Government Code Section 16429.1 for the purpose of investment as stated herein.

3. That the following City of Escondido officers holding the title(s) specified herein below or their successors in office shall be authorized to order the deposit or withdrawal of monies in the Local Agency Investment Fund and may execute and deliver any and all documents necessary or advisable in order to effectuate the purposes of this resolution and the transaction contemp lated hereby: Douglas Shultz, City Treasurer, or Christina Holmes, Finance Director or, Michelle Collett, Revenue Manager, or Derak Morrell, Accountant.
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4. That this Resolution shall remain in full force and effect until rescinded by the City Council by resolution and a copy of the resolution rescinding this resoluti on is filed with the State T reasurer’s Office.

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STAFF REPORT

May 11, 2022
File Number 0490-60

SUBJECT
THE CITY OF ESCONDIDO’S INVESTMENT POLICY

DEPARTMENT
City Treasurer

RECOMMENDATION
Request the City Council adopt Resolution No. 2022-54, approving the City of Escondido’s May 2022 Investment Policy.

Staff Recommendation: Receive and File (City Treasurer: Douglas Shultz) Presenter: Douglas Shultz, City Treasurer

PREVIOUS ACTION
The last adoption of the Investment Policy was on May 20, 2020, with Resolution No. 2020-34.

BACKGROUND
In compliance with California Government Code Section 53646, the City Treasurer may annually present the City’s Investment Policy to the legislative body at a public meeting to reaffirm or make any changes to the existing policy. The Investment Policy provides the City with guidelines for the investment of City funds. The Policy’s guidelines set forth the investment selection criteria of safety, liquidity, and yield.

The City of Escondido’s May 2020 Investment Policy has been deemed current and up -to-date per the California Debt and Investment Advisory Commission (“CDIAC”) Local Agency Investment Guidelines. The May 2020 Investment Policy was also submitted to the California Municipal Treasurer’s Association who certified that the City of Escondido’s Investment Policy complies with the current State statutes governing the investment practices of local government entities with the State of California.

There are no changes from the City of Escondido’s May 2020 Investment Policy to the May 202 2 Investment Policy. The Escondido Municipal Code vests authority for and control of investments to the City Treasurer. Responsibility for t he investment program is delegated by the City Council to the City Treasurer, during the annual Investment Policy Update. The City Council may renew the delegation of authority each year. Attached as Exhibit 1 to Resolution 202 2-54 is the May 2022 Investment Policy for the City Council review and approval.

RESOLUTIONS
a. Resolution 2022-54
b. Resolution No. 2022-54 Exhibit “A” – May 2022 Investment Policy

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RESOLUTION NO. 2022-54

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ESCONDIDO, CALIFORNIA, ADOPTING THE CITY OF
ESCONDIDO'S INVESTMENT POLICY DATED MAY 2022

WHEREAS, the City Council has previously adopted annual Investment Policies pursuant to the requirements of the California Government Code; and
WHEREAS, the City of Escondido’s May 2022 Investment Policy is in accordance with Government Code Section 53601 and meets Association of Public Treasurers of the United States & Canada (“APT US & C”) Investment Policy Certification standards; and
WHEREAS, the City Council desires at this time, and deems it to be in the best public interest, to adopt the City of Escondido's May 2022 Investment Policy.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Escondido, California:

1. That the above recitations are true.

2. That the City Council hereby adopts the City of Escondido's May 2022 Investment Policy, which is attached to this Resolution as Exhibit “A” and incorporated by this reference. 116
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Resolution No. 2022-54
Exhibit “A”

City of Escondido

INVESTMENT POLICY

May 2022

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Exhibit “A”

TABLE OF CONTENTS
Page
I. Policy Statement ............................................................................................ 1 II. Scope ........................................................................................................... 1 III. Prudence ......................................................................................... 1-2 IV. Investment Objectives ................................................................................. 2-3 V. Executive Investment Committee .................................................................... 3 VI. Required Reporting ........................................................................................ 3 VII. Authorized Financial Institutions and Broker/Dealers ...................................... 4-5 VIII. Safekeeping and Custody .............................................................................. 5 IX. Accountability and Authority ........................................................................... 5 X. Ethics and Conflicts of Interest ........................................................................ 5 XI. Internal Control ............................................................................................. 6 XII. Authorized and Suitable Investments .......................................................... 6-12 XIII. Maturity Goals ......................................................................................... 12-13 XIV. Policy Review ............................................................................................... 13 XV. Investment Procedures .................................................................................. 13 XVI. Investment Strategy and Performance Standards ............................................ 13 XVII. Investment Pools/Mutual Funds ..................................................................... 14 Appendix – Investment Procedure Manual .................................................. 15-19 Glossary of Terms .................................................................................... 20-25

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1 CITY OF ESCONDIDO

INVESTMENT POLICY
I. Policy Statement
This policy establishes the limits within which the City's investme nt program shall be conducted. Investment goa ls and objectives are defined. Qualified investment instrumentalities and reporting requirements are identified. Authority, accountability, audit control and procedures governing the investment program are delineated.

The investment policies and practices of the City of Escondido are based upon state law, city ordinance, and prudent money management.

II. Scope
This policy applies to the investment of all funds under the control of the City Treasurer.

These funds are accounted for in the City of Escondido’s Comprehensive Annual Financial Report and include:
 General Fund
 Special Revenue Funds
 Debt Service Funds
 Capital Project Funds
 Enterprise Funds
 Internal Service Funds
 Trust Funds

This policy does not apply to the Employees Deferred Compensation Fund and PERS funds, which are administered separately. Also, this investment policy does not apply stocks, bonds, or other securities donated to the Escondido Public Library until such time as the Library Board of Trustees determines to dispose of such securities

Bond proceeds shall be invested in the securities permitted by the applicable bond documents. If the bond documents are silent as to the permitted investments, the bond proceeds will be invested in the secu rities permitted by this Policy.

Notwithstanding the other provisions of this Policy, the percentage limitations listed in elsewhere in this Policy do not apply to bond proceeds.

III. Prudence

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2 Pursuant to California Government Code Section 53600.3, as amended, the City Council and all persons authorized to make investment decisions on behalf of the City are trustees of the public funds and therefore fiduciaries subject to the following prudent investor standard.

When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill prudence and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency. Within the li mitations of this section and considering individual investments as part of an overall strategy, investments may be acquired as authorized by law.

The City Treasurer and other individuals who are assigned to manage the investment portfolio, when they are acting in accordance with the City’s investment policy, with written procedures and in reasonable reliance on existing California statutes and when they have properly exercised due diligence, will be relieved of personal responsibility for an individual se curity’s credit risk or market price changes, provided deviations from expectations are reported in a timely fashion and appropriate action is taken to control adverse developments.

IV. Investment Objectives
A. The criteria for selecting investments by order of priority shall be:

1. Safety. Safety of principal is the City of Escondido’s foremost objective.

Investments shall seek to ensure that capital losses resulting from institution default, broker-dealer default, or the erosion of market value are avoi ded. The City of Escondido shall seek to preserve principal by mitigating th e two types of risk: credit risk and market risk.
a. Credit risk, defined as the risk of loss due to failure of the issuer of a security, shall be mitigated by investing in only t he highest quality securities (see authorized investments) and by diversifying the investment portfolio so that the failure of any one issuer would not unduly harm the City’s cash flow. b. Market risk, defined as the risk of market value fluctuations due t o overall changes in the general level of interest rates, shall be mitigated by structuring the portfolio to eliminate the need to sell securities prior to maturity; and by prohibiting the taking of short positions, that is, selling securities that the City does not own. It is explicitly recognized, however, that in a diversified portfolio, occasional measured losses may occur, and must be considered within the context of overall investment return.
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3 2. Liquidity. The portfolio will be structured with sufficient liquidity to allow the City to meet expected cash requirements. The investment portfolio shall remain sufficiently liquid to ensure that projected expenditure requirements of the next six months can be met with a combination of anticipated revenues, maturing securities, and highly liquid investments and shall maintain a minimum level of short-term investments (one year or less) equivalent to 25% of the General Fund operating budget. The duration is also mentioned in the “Maturity” section.

3. Yield. In a manner consistent with the objectives of safety of principal and liquidity uppermost, a yield higher than the market rate of return shall be sought. The core of investments is limited to relatively low risk securities in anticipation of earning a fair return relative to the risk being assumed. Securities shall generally be held until maturity with the following exceptions:
 A security with declining credit may be sold early to minimize loss of principal.  A security swap would improve the quality, yield, or target duration in the portfolio.
 Liquidity needs of the portfolio require that the security be sold.

B. It shall be the policy of the City that all idle funds shall be invested consistent with providing adequate cash to meet the City's obligation.

V. Executive Investment Committee
The Executive Investment Committee will act in an advisory and oversight capacity to review and discuss investment portfolio management and investment policy compliance.

The City Manager, the City Treasurer, and the Finance Director will serve as permanent members of the Executive Investment Committee. Other members, as deemed necessary or desirable, may be appointed to the committee by the City Treasurer or the City Manager. The Treasury and Finance Department personnel sha ll serve as staff to the committee.

VI. Required Reporting
The City Treasurer or his designees shall report to the City Manager and City Council the following reports:

A. A monthly list of list of transactions.

B. Quarterly investment report (as per Government Code Section 53646) will include the type of investment, issuer, date of maturity, par, and dollar amount invested and market value for each security held by the City. The report shall state compliance of the portfolio to the statement of investment policy, or manner in which the portfolio is not in compliance. The report shall state the source of the market value valuation and include a statement denoting the ability to meet the City's expected expenditure

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4 requirements for the next six months. The quarterly report shall be submitted within 30 days of the end of the quarter.

C. An annual report setting forth a statement of investment policy.

VII. Authorized Financial Institutions and Broker/Dealers A. The following requirements only apply to purchases made directly by the City and not purchased directly from the issuer
B. General criteria for the selection of financial institutions and broker/dealers shall be developed by the City Treasurer and reviewed by the City Investment Committee.

C. Selection of financial institutions and broker/dealers shall be performed by authorized City staff under direction of the Executive Investment Committee. The City has an established formal procedure process in place for the selection of financial institutions and broker/dealers. As determined necessary by the Executive Investment Committee, the City will distribute a broker/dealer questionnaire to interested and known financial institutions and broker/dealers. The C ity Treasurer will maintain a list of qualified broker/dealers authorized to provide investment services to the City of Escondido. The list may include primary or regional dealers that are credit worthy and qualify under the uniform net capital rule of the Securities & Exchange Commission Rule 15C3-1.

All financial institutions and broker/dealers who desire to provide investment services must participate in the City’s formal broker /dealer questionnaire process. To be considered, the financial institution or broker/dealers must supply the following as appropriate:
 Completed broker/dealer questionnaire
 Proof of Financial Industry Regulatory Authority (FINRA) registration  License to conduct business in the state of California  Audited financial statements dem onstrating compliance with state and federal capital adequacy guidelines
 Certification of having read and understood and agreeing to comply with the City of Escondido’s investment policy
 Evidence of adequate insurance coverage
Qualified broker/dealers selected to do business with the City shall submit annually a current audited financial statement.

After the annual adoption of the City’s Investment Policy by the City Council, a copy shall be sent to all broker/dealers approved to do business with the City. Confirmation of receipt of this policy shall be considered evidence that the dealer understands the City’s investment policies and intends to sell the City only appropriate investments authorized by this investment policy.
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5 D. General criteria for the selection of banks and savings and loans into which the City shall invest its funds shall be developed by the City Treasurer and reviewed by the Executive Investment Committee subject to the limitations set forth in this policy.

E. Selection of specific institutions in which City funds may be invested shall be performed by authorized City staff under the direction of the Executive Investment Committee.

F. Institutions in which City funds may be invested shall be classified by the Ci ty Treasurer and reviewed by the Executive Investment Committee. The classification shall determine the maximum dollar amount allowable for investment in the specified institution.

G. If the City has contracted with an investment advisor to provide investment services, the investment advisor may use their own list of approved issuers, brokers/dealers and financial institutions with which to conduct transactions on the City’s behalf.

VIII. Safekeeping and Custody
To protect against potential losses by the collapse of individual securities dealers, all deliverable securities owned by the City shall be held in safekeeping by a third party bank trust department acting as agent for the City under the terms of a custody agreement executed by the bank and the City. All deliverable securities will be received and delivered using standard delivery versus payment (DVP) procedures.

IX. Accountability and Authority
A. The Escondido Municipal Code vests authority for and contr ol of investments to the City Treasurer. Responsibility for the investment program is hereby delegated by the City Council to the C ity Treasurer, for a period of one -year, who shall thereafter assume full responsibility for the investment program until the delegation of authority is revoked. Subject to review, the City Council may renew the delegation of authority each year.

B. The City Treasurer may delegate the authority to conduct investment transactions to qualified and competent officials and employees of the City. Daily management responsibility of the investment program may be delegated to Treasury staff and/or the Finance Director who shall establish procedures for operation consistent with the investment policy.

C. The City Treasurer may utilize the services of an external investment advisor to assist with the investment program. The advisor shall act in a manner consistent with this Investment Policy and any written directions provided by the City Treasurer or other delegated officials per subsection B above . Furthermore, the advisor may not take possession of the City’s cash or securities. Such investment advisors must be registered under the Investment Advisers Act of 1940.

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6 X. Ethics and Conflicts of Interest
Officers and employee s involved in the investment process shall refrain from personal business activity that conflicts with proper execution of the investment program or impairs their ability to make impartial investment decisions. Additionally, the City Treasurer and the Finance Director are required to annually file a Statement of Economic Interest as mandated by Government Code Section 91013.

XI. Internal Control
The City Treasurer or his designee shall establish procedures for controlling daily investment transactions and monthly reconciliation of accounts. Separation of functions between the City Treasurer’s Office and the Finance Department is designed to provide an internal review to prevent the potential for converting asse ts or concealing transactions. The investment portfolio and all related transactions are balanced to appropriate general ledger accounts by the Finance Department on a monthly basis. Such procedures and controls shall be subject to review and comments by the City’s independent auditor.

XII. Authorized and Suitable Investments
A. Qualifying Investment Instruments Policy:

1. The following instruments are generally approved as qualifying investment instruments for City funds:
a. U.S. Treasury Obligations
b. U.S. Agency Securities
c. Municipal Securities
d. Supranationals
e. Negotiable Certificates of Deposit
f. Banker's Acceptances
g. Commercial Paper
h. Repurchase Agreements
i. Local Agency Investment Fund (LAIF) of the State of California j. Local Government Investment Pools
k. Bank Deposits
l. Placement Service Deposits
m. Medium-Term Notes
n. Asset-Backed Securities
o. Money Market Funds

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7 2. Within the qualified investment instrument listing, the Executive Investment Committee may further define, qualify, and restrict use of City investment monies.

3. Trading is prohibited when cash or liquid securities are not available to pay for the securities being purchased. The taking of short positions, that is, selling securities which the City does not own, is also prohibited.

4. Investments which exceed 5 years in maturity require that authority be granted by City Council before purchase. Writ ten authority of the City Council must be granted specifically or as part of an investment program no less than three months prior to the date of purchase (California Government Code Section 53601).

5. Callable agency securities (i.e. securities redeemable in part or in full by the issuer prior to the maturity date) shall not exceed 30% of the value of the portfolio.

Callable agency securities which have passed their final call date and are no longer callable will not be included when calculating the 30% limit.

6. The City may invest in floating-rate securities whose coupon resets are based upon a single fixed income index which would representative of an eligible investment (e.g. LIBOR, T-bill, prime, 2-year CMT), provided that the security is not leveraged (e.g. 2 times an index) or has a coupon that resets inversely to the underlying index.

B. Diversification by Type of Investment:

The City is governed by California Government Code, Sections 53600 (et seq.). It shall be the policy of the City that investments shall be diversified with respect to the type of investment instruments used. Percentage limitations and credit rating requirements listed in this policy apply at the time of purchase. If a security owned by the C ity is downgraded below the minimum credit rating required at purchase, the City Treasurer shall determine the course of action on a case-by-case basis considering such factors as the reason for the downgrade, prognosis for recovery or further rating downgrades, and the market price of the security. Within the context of these limitations, the following investments are generally approved as qualifying investment instruments for City funds, as further limited herein:

1. United States Treasury Bills, Bonds, and Notes, or those for which the full faith and credit of the United States are pledged for payment of principal and interest.

There is no limitation as to the percentage of the portfolio, which can be invested in this category.

2. Federal agency or Uni ted States government -sponsored enterprise obligations, participations, or other instruments, including those issued by or fully guaranteed as to principal and interest by federal agencies or United States government - sponsored enterprises. There is no limitation as to the percentage of the portfolio, which can be invested in this category . However, no more than 30% of the portfolio can be invested in any one agency name.
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8 3. Municipal Debt to include registered state warrants or treasury notes or bonds of this state, including bonds payable solely out of the revenues from a revenue - producing property owned, controlled, or operated by the state or by a department, board, agency, or authority of the state.

Registered treasury notes or bonds of any of the other 49 states in addition to California, including bonds payable solely out of the revenues from a revenue - producing property owned, controlled, or operated by a state or by a department, board, agency, or authority of any of the other 49 states, in addition to California.

Bonds, notes, warrants, or other evidences of indebtedness of a local agency within this state, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by the local agency, or by a department, board, agency, or authority of the local agency.

Purchases are limited to securities rated in a rating category of “A” (long-term) or “A-1” (short -term) or their equivalents or better by an Nationally Recognized Statistical Rating Organizations (NRSRO). A maximum of 40% of the portfolio may be invested in this category.

4. United States dollar denominated senior unsecured, unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Developm ent (IBRD), International Finance Corporation (IFC), or Inter - American Development Bank (IADB) with a maximum remaining maturity of five years or less, and eligible for purchase and sale within the United States.

Investments under this subdivision shall be rated in a rating category of “AA” or better by an NRSRO A maximum of 30% of the portfolio may be invested in this category. These investments shall be classified as “Supranationals” for reporting purposes.

5. Negotiable Certificates of Deposit (NCD) issued by a nationally or state-chartered bank, a savings association or a federal association (as defined by Section 5102 of the Financial Code), a state or federal credit union, or by a federally -licensed or state-licensed branch of a foreign bank. Purchases are limited to securities rated in a rating category of “A” (long -term) or “A-1” (short-term) or their equivalents or better by an NRSRO . NCDs for which the full amount of the principal and the interest that may be accrued during the maximum term of each certificate is insured by federal deposit insurance are exempt from the rating requirements. A maximum of 30% of the portfolio may be invested in this category.

6. Bills of exchange or time drafts drawn on and accepted by a commercial bank otherwise known as bankers ' acceptances. Eligible bankers’ acceptances are restricted to issuing financial institutions that have short -term debt rated in the rating category of “A -1” or its equivalent or better by a NRSRO. Purchases of banker's acceptances may not exceed 180 days to maturity. A maximum of 30% of the portfolio may be invested in this category.
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9 7. Commercial paper of “prime” quality of the highest ranking or of the highest letter and number rating as provided by a NRSRO. The entity that issues the commercial paper shall meet all of the following conditions: (A) Is organized and operating in the United States as a general corporation; (B) Has total assets in excess of five hundred million dollars ($500,000,000), and (C) Has debt other than commercial paper, if any, that is rated in a rating category of “A” or its equivalent or better by an NRSRO. Purchases of eligible commercial paper may not exceed 270 days. A maximum of 25% of the portfolio may be invested in this category. The City may not purchase more than 10 percent of the outstanding commercial paper of any single issuer.

8. Repurchase Agreements used solely as short-term investments not to exceed one year. The following collateral restrictions will be observed: Only U.S. Treasury securities or Federal Agency securities. All securities underlying Repurchase Agreements must be delivered to the City’s custodian bank or held by a third party custodial agreement. The City or its trustee shall have a perfected first security interest under the Uniform Commercial Code in all securities subject to repurchase agreement. The City shall have properly executed a Master Repurchase Agreement with each counter party with which it enters into repurchase agreements. The total of all collateral for each Repurchase Agreement must equal or exceed, on the basis of market value, 102% of the funds invested against those securities. For any Repurchase Agreement with a term of more than one day, the value of the underlying securities must be reviewed on a weekly basis and the value of the underlying securities brought back up to 102% no later than the next business day. Market value must be calculated each time there is a substitution of collateral.

9. Local Agency Investment Fund. The City may invest in the Local Agency Investment Fund (LAIF) established by the State Treasurer for the benefit of local agencies up to the maximum amount permitted by State Law . The City’s investment in LAIF will be determined accordin g to the City’s liquidity needs and may not exceed the limit set by LAIF for operating accounts . When calculating this limit, the City doe s not include bond proceeds invested with LAIF . These bond proceeds are held separately to meet arbitrage regulations and are not part of our pooled investments. LAIF has traditionally limited investments to short - term government type bonds. Treasury staff reviews the LAIF statements quarterly to ensure that this practice is maintained.

10. Local Government Investment Pools (LGIP). Shares of beneficial interest issued by a joint powers authority organized pursuant to Section 6509.7 that invests in the securities and obligations authorized in Govern ment Code. Investments will be limited to LGIPs that seek to maintain a stable net asset value. Whenever the City has any funds invested in a LGIP, the City Treasurer shall maintain on file a copy of the LGIP’s current information statement and periodicall y review the LGIP’s investments. There is no limitation as to the percentage of the portfolio that can be invested in this category.
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10 11. FDIC insured or fully collateralized bank deposits, including, but not limited to, demand deposit accounts, savings accounts, market rate accounts, and time deposits. To be eligible to receive City deposits, the financial institution must be located in California and have received a minimum overall satisfactory rating, under the Community Redevelopment Act, for meeting the credit needs of California Communities in its most recent evaluation. The amount on deposit in any financial institution shall not exceed the shareholder’s equity. Bank deposits are required to be collateralized as specified under Government Code Secti on 53630 et. seq. The City Treasurer, at his/her discretion, may waive the collateralization requirements for any portion that is covered by federal deposit insurance. The City shall have a signed agreement with any depository accepting City funds per Gove rnment Code Section 53649. The maturity of time certificate of deposits (TCDs) may not exceed 3 years. There is no limit on the percentage of the portfolio that may be invested in bank deposits. However, a maximum of 20 percent of the portfolio may be invested in TCDs

12. Insured deposits placed with a private sector entity that assists in the placement of deposits with eligible financial institutions located in the United States (Government Code Section 53601.8). The full amount of the principal and the interest that may be accrued during the maximum term of each deposit shall at all times be insured by f ederal deposit insurance. A maximum of 30 percent of the portfolio may be invested in this category. The maximum investment maturity will be restricted to three (3) years.

13. Medium-term notes, defined as all corporate and depository institution debt securities with a maximum remaining maturity of five years or less, issued by corporations organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States. Purchases are limited to securities rated in a rating category of “A” or its equivalent or better by an NRSRO. A maximum of 30% of the portfolio may be invested in this category.

14. Mortgage passthrough security, collateralized mortgage obligation, mortgage - backed or other pay-through bond, equipment lease-backed certificate, consumer receivable passthrough certificate, or consumer receivable -backed bond with a maximum remaining maturity of five years or less. Securities eligible for purchase shall be rated in a rating category of “AA” or its equivalent or better by an NRSRO.

A maximum of 20% of the portfolio may be invested in this category.

15. Money market funds (MMF) are restricted to Government Money Market Funds.

Furthermore, these Money Market Funds must have met either of the following criteria: (A) Attained the highest ranking or the highest letter and numerical rating provided by not less than two NRSROs, or (B) Retained an investment advisor with not less than five years’ experience and registered or exempt from registration with the SEC, with assets under management in excess of five hundred million dollars ($500,000,000). Whenever the City has any funds invested in a MMF, the 128
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11 City Treasurer shall maintain on file a copy of the MMF’s current information statement. A maximum of 20% of the portfolio may be invested in this category

16. Ineligible Investments. Investments not described herein, including, but not limited to, commo n stocks, inverse floaters, range notes, or mortgage -derived interest-only strips are prohibited from use in this portfolio.

C. Diversification by Institution.

The City shall seek to diversify its investments within the portfolio to avoid incurring unreasonable risks inherent in over investing in specific investment types, individual financial institutions or maturities.

To promote diversification, no more than 5% of the portfolio may be invested in the securities of any one issuer, regardless of security type; excluding U.S. Treasuries, federal agencies, supranationals, and pooled investments such as LAIF, money market funds, or local government investment pools.

D. Investment Compliance Review
All securities held by the City will be maintained in compliance with Section XII, Authorized and Suitable Investments. The investment portfolio shall be reviewed quarterly to determine compliance with these parameters. Non-compliance events will be evaluated to determine and initiate actions needed to adjust investment yields, maturities, percentage requirements or other, in order to bring the portfolio back into compliance. In the event an instance of non-compliance is recommended by the City Treasurer, authorization may be given by the Executive Investment Committee and the Mayor if done unanimously. All major and critical incidences of non -compliance shall be reported in the quarterly treasurer’s report to the City Council.

Summary Table of the Policy's Authorized and Suitable Investments: 1

Investment Type
Maximum
Maturity 2
Maximum
% of
Portfolio
Maximum
% with
One
Issuer
Minimum
Rating 3
U.S. Treasury Obligations 5 years None None None
U.S. Agency Securities 5 years 100% 30% None
Municipal Securities 5 years 40% 5% A
Supranationals 5 years 30% 30% AA
Negotiable Certificates of Deposit 4 5 years 30% 5% A
Bankers' Acceptances 4 180 days 30% 5% A-1
Commercial Paper 4 270 days 25% 5% A-1
Repurchase Agreements4 1 year None None (5)
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12 Investment Type
Maximum
Maturity 2
Maximum
% of
Portfolio
Maximum
% with
One
Issuer
Minimum
Rating 3
Local Agency Investment Fund N/A $75M None None
Local Government Investment Pools N/A None None (6)
Bank Deposits 7 5 years 100% 100% (5)
Placement Service Deposits7 5 years 30% 30% (7)
Medium Term Notes4 5 years 30% 5% A
Asset-Backed Securities 4 5 years 20% 5% AA
Money Market Funds8 N/A 20% 20% (8)

1. Within the investments permitted by the Code, the City seeks to further restrict eligible investments to the guidelines listed above. In the event a discrepancy is found between this Policy and the Summary Table above, the more restrictive parameters will take precedence. See Section XII of the City Treasurer’s Investment Policy for additional detail.

2. In the absence of a specified maximum, the maximum is 5 years.

3. Minimum credit rating categories apply to the category without regards to modifications (+/-). Credit ratings are from any NRSRO.

4. Per issuer limitations apply across investment types.

5. Collateralization is required. See Section XII of the City Treasurer’s Investment Policy for additional detail.

6. The LGIP must have retained an advisor that is registered or exempt from registration with the Securities and Exchange Commission, has not less than five years of experience investing in the securities and obligations authorized by Code, and has assets under management in excess of five hundred million dollars ($500,000,000).

7. Federal deposit is required for the full amount of the deposit and any accrued interest.

8. Money market funds must have the highest ranking or the highest letter and numerical rating provided by not less than two NRSROs or have an investment advisor that meets certain criteria.

XIII. Maturity Goals

1. Subject to the availability of funds, short -term investments (maturity of one year or less) of the City shall not be less than 25 percent of the General Fund annual operating budget of the City.

2. The percentage of the City's portfolio that may be invested intermediate term (maturity term over one year and not greater than five years) shall be determined by the City Treasurer based on estimated cash requirements. 130
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13 3. Long-term investments (over five years to maturity date) shall be made only after review and approval by the City Council. Accordingly, no fixed percentage of the City's portfolio is designed for long-term investments.

4. Additional and/or clarifying maturity guidelines shall be adopted from time to time as devised by the City Treasurer and reviewed by the Executive Investment Committee.

XIV. Policy Review
This investment policy shall be reviewed at least annually to ensure its consistency with the overall objectives of preservation of principal, liquidity, yield, and its relevance to current law and financial and economic trends. The City of Escondido’s investment policy shall be approved by the City Council on an annual basis.

XV. Investment Procedures
The City Treasurer and his/her delegated staff shall establish written investment policy procedures for the day-to-day operations of the investment program consistent with this policy. The procedures should include reference to cash balancing, safekeeping, wire transfer agreements, collateral/depository agreements, and the selection process for financial institutions and broker/dealers. The 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 City Treasurer.

XVI. Investment Strategy and Performance Standards
The investment portfolio shall be managed with the objective of obtaining a rate of return throughout budgetary and economic cycles, commensurate with the investment risk constraints and the cash flow needs. The City will employ an active management approach that allows for the sale of securities prior to their scheduled maturity dates for purposes of improving the portfolio’s credit quality, liquidity, or return in response to changing market conditions or the City’s circumstances. This Policy recognizes that in a diversified portfolio occasional measured losses are inevitable and must be considered within the context of the overall portfolio's structure and expected investment return, with the proviso that adequate diversification and credit analysis have been implemented.

An appropriate performance benchmark shall be established against which portfolio performance shall be compared on a regular basis. The selected performance benchmark shall be representative of the City’ s overall investment objectives and liquidity requirements.

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14 XVII. Investment Pools/Mutual Funds
A thorough investigation of the pool/fund is required prior to investing, and on a continual basis. There shall be a questionnaire developed which will answer the following general questions:

1. A description of eligible investment securities, and a written statement of investment policy and objectives.

2. A description of interest calculations and how it is distributed, and how gains and losses are treated.

3. A description of how the securities are safeguarded (including the settlement processes), and how often the securities are priced and the program audited.

4. A description of who may invest in the program, how often, what size depo sit and withdrawal are allowed.

5. A schedule for receiving statements and portfolio listings.

6. Are reserves, retained earnings, etc. utilized by the pool/fund?

7. A fee schedule, and when and how is it assessed.

8. Is the pool/fund eligible for bond proceeds and/or will it accept such proceeds?

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15 APPENDIX

CITY OF ESCONDIDO

INVESTMENT PROCEDURE MANUAL
Purpose
The purpose of these guidelines is to help create a Procedure Manual to assist Treasury staff with day-to-day investment operations.

References and subjects at the beginning of each section refer to elements in the Investment Policy. In the event a discrepancy between this Appendix and the requirements in the body of the Policy, the requirements listed in the Body of the Policy take precedence.

Cash Review
I. Policy
II. Scope
IX. Accountability and Authority
The City Treasurer or his/her designee, must review the cash balances and investment portfolio daily, or as needed. Items to be reviewed should include:
a) Balance of City of Escondido’s General Account
b) Maturing Investments (includes all investments)
c) Large incoming wires from the State, County, and other miscellaneous agencies d) Large outgoing wires such as debt service payments and routine wires such as San Diego County Water Authority, Kaiser, and Workers’ Com pensation Service provider and any other routine that may be added
e) Accounts payable and payroll disbursements
Investment Selection
III. Prudence
IV. Objective
XII. Authorized and Suitable Investments
XII B. Diversification
XIII. Maturity Goals

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16 The City Treasurer or designee determines how much of the cash balance is available for investment and selects the area of the yield curve that most closely matches the required maturity date based on cash flow needs.

In determining the maturity date, the Treasurer designee, should consider liquidity, cash flow , and expected expenditures. A review of some of the following sources should determine whether the investments should be placed to match projected expenditures or shorter, or take advantage of current and expected interest rate environments:
a) Review daily business publications and commentaries from financial institutions and brokers.
b) Read publications, Wall Street Journal , and watch media (CNBC) for general trends of economic interests.
c) Input from approved broker/dealers.

Purchasing an Investment
VII. Authorized Financial Institutions and Broker/Dealers VIII. Safekeeping and Custody
XII. Authorized and Suitable Investments
XII B. Diversification of Investments
XIII. Maturity Goals
Financial institutions are selected through a “Request for Proposal” (RFP) process. Broker/dealers are selected through a formal questionnaire process, which helps provide the following evaluation:
a) Financial conditions, strength, and capability to fulfill commitments. b) Overall reputation with other investors.
c) Regulatory status of the broker/dealer (all providers). d) Background and expertise of the individual representative.

Selection of financial institutions and broker/dealers shall be performed by authorized City staff under direction of the Executive Investment Committee. The City has an established formal procedure process in place for the selection of financial institutions and broker/dealers. Every three to five years the City will distribute a broker/dealer questionnaire to interested and known financial institutions and broker /dealers. The City Treasurer will maintain a list of qualified broker/dealers authorized to provide investment services to the City of Escondido. The list may include primary or regional dealers that are credit worthy and Rule 15C3-1. 134
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17 All financial inst itutions and broker/dealers who desire to provide investment services must participate in the City’s formal broker/dealer questionnaire process. To be considered, the financial institution or broker/dealers must supply the following as appropriate:
 Completed broker/dealer questionnaire
 Proof of Financial Industry Regulatory Authority (FINRA) registration  License to conduct business in the State of California  Audited financial statements demonstrating compliance with state and federal capital adequacy guidelines
 Certification of having read and understood and agreeing to comply with the City of Escondido’s investment policy
 Evidence of adequate insurance coverage
Qualified broker/dealers selected to do business with the City shall submit annually curren t audited financial statement.

After the annual adoption of the City’s investment policy by the City Council, a copy shall be sent to all broker/dealers approved to do business with the City. Confirmation of receipt of this policy shall be considered evidence that the dealer understands the City’s investment policies and intends to sell the City only appropriate investments authorized by this investment policy.

The Treasurer designee shall be as specific as possible in requesting the offering in purchasing a security. If a particular type of investment or a particular agency is to be excluded due to policy limitations that should be stated to the providers. If collateral is required (i.e. for Repo’s or CD’s) the collateral limitations (excess margin, types of securities, maximum maturity, etc.) should be specified. The City may invest in repurchase agreements provided it has a signed master repurchase contract, which specifies terms and conditions of repurchase agreements.

The following must be determined prior to contacting the providers:
a) Settlement – cash, regular (next day), skip (2 business days), corporate (3 business days) or when-issued if a new issue.
b) Amount – either par value or total dollars to be invested. c) Type of security to be purchased or type to be excluded. d) Targeted maturity or maturity range.
e) Time limit to show offering – 5 minutes, 15 minutes, or a specified time.

If choosing an external pool (or LAIF or Money Market) as the preferred investment vehicle at the time, the following should be available for inspection prior to purchase and at reasonable time thereafter:
a) LAIF written investment policy and a copy of the “LAIF ANSWER BOOK” (which contains detailed information about LAIF).

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18 b) A prospectus for the Money Market funds or bank-managed funds. c) The balance of the LAIF account is reviewed to adhere to the City’s investment pool limit.

Before concluding the transaction, the following should be validated:
a) The security selected for purchase meets all criteria including portfolio -diversification, collateralization (if appropriate), and maturity. If the security has any imbedded options such as call provisions or coupon adjustments, these should also be reviewed. Current practice is to buy bullet securities, no callable. The strategy is buy and hold. b) Verify yield.
c) Total purchase cost (including accrued interest) does not exceed funds available for investment.
d) Advise the successful provider that their offering has been selected for purchase. e) After confirmation of the purchase, as a courtesy, notify the other broker/dealers that you have placed the investment. Best price may be disclosed if the other broker/dealers ask.

After consummation of the transaction, and prior to settlement date, the fol lowing information should be confirmed with the provider in order to ensure prompt and uninterrupted settlement:
a) Reconfirm amounts of transaction (principal, accrued interest, if any, and total cost). b) Reconfirm settlement date.
c) Acquire CUSIP number of security, if applicable.
d) Obtain a copy of the Bloomberg (trade ticket plus description page).

All qualified broker/dealers have the City’s delivery instructions, which consist of the following:
a) Name of third-party safekeeping agent (currently Bank of New York Mellon Trust, contact designated customer service representative)
b) ABA number of safekeeping agent.
c) Safekeeping account number.

Settlement and Follow-Through
IX. Accountability and Authority
The City Treasurer or other designee should forward to the safekeeping agent, by fax or e-mail, detailed information regarding investment transaction. The detailed information of the purchased security will consist of:
a) Type of security.
b) Par amount, stated coupon, interest yield, maturity date, and CUSIP number.

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19 c) Specified dollar amount (principal amount, accrued interest, if applicable, and total cost). d) Note the broker of the investment transaction.
e) Signature of the Treasurer designee.

A phone call should be made to the safekeeping agent to inform of purchase and confirm receipt of the investment information. When applicable the following should be verified:
a) Provision of receipt or disbursement of funds.
b) Internal transfer or wiring of funds.
c) Written validation from safekeeping agent.
d) Notification of discrepancy prior to acceptance or rejection of the transaction. e) Immediate notification if a fail has occurred: by provider if they are responsible, by safekeeping agent if they are responsible.
f) That all verbal and written verifications have been forwarded to and received from applicable parties to ensure that transaction was successfully executed.

Investment Strategy and Performance Standards
XVI. Accountability and Authority
The investment portfolio shall be managed with the objective of obtaining a rate of return throughout budgetary and economic cycles, commensurate with the investment risk constraints and the cash flow needs. The City will employ an active management approach t hat allows for the sale of securities prior to their scheduled maturity dates for purposes of improving the portfolio’s credit quality, liquidity, or return in response to changing market conditions or the City’s circumstances. This Policy recognizes that in a diversified portfolio occasional measured losses are inevitable and must be considered within the context of the overall portfolio's structure and expected investment return, with the proviso that adequate diversification and credit analysis have been implemented.

An appropriate performance benchmark shall be established against which portfolio performance shall be compared on a regular basis. The selected performance benchmark shall be representative of the City’s overall investment objectives and liquidity requirements.

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20 GLOSSARY OF TERMS
Agencies — agencies of the federal government set up to supply credit to various classes of institutions (e.g., S&Ls, small business firms, students, farmers, housing agencies, etc.) Amortized Cost — cost of investments adjusted for premiums and discounts. Amortized cost is used to maintain comparability with market value.

Asked — the price at which securities are offered.

Asset-Backed Securities — Securities whose income payments and hence value is derived from and collateralized (or "backed") by a specified pool of underlying assets which are receivables.

Pooling the assets into financial instruments allows them to be sold to general investors, a process called securitization, and allows the risk of investing in the underlying assets to be diversified because each security will represent a fraction of the total value of the diverse pool of underlying assets. The pools of underlying assets can comprise common payments credit cards, auto loans, mortgage loans, and other types of assets. Interest and principal is paid to investors from borrowers who are paying down their debt.

Bankers’ Acceptance (BA) — a draft, 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 — price a prospective buyer is ready to pay.

Bond Indenture — written agreement specifying the terms and conditions for issuing bonds, stating the form of the bond being offered for sale, interest to be paid, the maturity date, call provisions and protective covenants, if any, collateral pledged, the repayment schedule, and other terms. It describes the legal obligations of a bond issuer and the powers of the bond trustee, who h as the responsibility for ensuring that interest payments are made to registered bondholders.

Book Value — a term synonymous with amortized cost.

Broker/Dealer — individual or firm acting as principal in securities transaction.

Callables — securities that the issuer has the right to redeem prior to maturity.

Certificates of Deposit (CD) — a time deposit with a specific maturity evidenced by a certificate.

Collateral — securities pledged to secure the value of an investment or deposit.

Commercial Paper – short-term IOU, or unsecured money market obligation, issued by prime rated commercial firms and financial companies, with maturities from 2 days up to 270 days. It 138
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21 is a promissory note of the issuer used to finance current obligations, and is a negotiable instrument.

Comprehensive Annual Financial Report (CAFR) — an annual financial report that contains at a minimum, three sections: introductory, financial and statistical, and whose financial section provides information on each individual fund and component unit. (Definition source: 2005 Governmental Accounting, Auditing, and Financial Reporting (GAAFR)).

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.

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

Delivery vs. Payment — there are two methods of delivery of securities: delivery versus payment and delivery versus receipt. Delivery versus payment is delivery of securities with a simultaneous exchange of money. Delivery versus receipt is delivery of securities with an exchange of a signed receipt for the securities.

Derivatives — a) financial instruments whose return profile is linked to, or derived f rom, the movement of one or more underlying index or security, and may include a leveraging factor; b) 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.

Executive Investment Committee — a committee chaired and appointed by the City Treasurer to oversee the day-to-day investment program of the City.

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.

Deposit coverage increased from $100,0 00 to $250,000 per depositor in 2008. The increased coverage limits of $250,000 per depositor, per insured institution, was extended indefinitely effective July 2010 with the passage of the Dodd-Frank Act. 139
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22 Federal Funds Rate — the rate of interest associa ted with borrowing a Federal Reserve Bank’s excess reserves. This rate is currently pegged by the Federal Reserve through open -market operations.

Federal Open Market Committee (FOMC) — a committee that sets interest rate and credit policies for the Federal Reserve System, the United States’ central bank. The FOMC has 12 members.

Seven are the members of the Federal Reserve Board, appointed by the president of the United States. The other five are presidents of the 12 regional Federal Reserve banks. Of the five, four are picked on a rotating basis; the other is the president of the Federal Reserve Bank of New York, who is a permanent member. The committee decides whether to increase or decrease interest rates through open market operations of buying or s elling government securities. The committee’s decisions are closely watched and interpreted by economists and stock and bond market analysts, who try to predict whether the Fed is seeking to tighten credit to reduce inflation or to loosen credit to stimulate the economy.

Federal Reserve System — system established by the Federal Reserve Act of 1913 to regulate the U.S. monetary and banking system. The Federal Reserve System (the Fed) is comprised of 12 regional Federal Reserve Banks, their branches, and all national and state that are a part of the system. The Federal Reserve System’s main functions are to regulate the national money supply, set reserve requirements for member banks, supervise the printing of currency at the mint, act as clearinghouse for transfer of funds throughout the banking system, and examine member banks to make sure they meet various Federal Reserve regulations.

Financial Industry Regulatory Authority (FINRA) — The Financial Industry Regulatory Authority (FINRA) is the largest independent regulator for all securities firms doing business in the United States. All told, FINRA oversees nearly 4,750 brokerage firms, about 167,000 branch offices and approximately 634,000 registered securities representatives.

Interest Rate Risk — the risk that investments will lose market value because of increases in market interest rates. A rise in market interest rates will cause the market value of investments made earlier at lower interest rate to lose value. The reverse will cause a gain in market value.

Investment Committee — a committee chaired by the City Treasurer to advise the City Treasurer on policies governing the City's investment program.

Laddered Portfolio — bond investment portfolio with securities in each maturity range (e.g. monthly) over a specified period of time (e.g. five years).

Leverage — investing with borrowed money with the expectation that the interest earned on the investment will exceed the interest paid on the borrowed money.

Liquidity — the ability to turn an asset into cash. The ability to buy or sell an asset quickly and in large volume without substantially affecting the asset’s price.

Local Agency Investment Fund (LAIF) — the aggregate of all funds from political subdivisions that are placed in the custody of the State Treasurer for investment and reinvestment. 140
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23 Local Government Investment pool (LGIP) — a type of pooled investment program in which funds from local agency investors/participants are aggregated together for investment purposes.

Market Value — the price at which a security is trading, usually the liquidation value.

Master Repurchase Agreement — a written contract covering all future transactions between the parties to repurchase reverse repurchase agreements that establish each party’s rights in the transactions. A master repurchase agreement will often specify 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.

Modified Duration — a measure of the sensitivity that the value of a fixed-income security has to changes in market rates of interest. Modified duration is the best single measure of a portfolio’s or security’s exposure to market risk. Modified duration identifies the potential gain/loss in value before the gain/loss actually occurs. It is a prospective measurement, e.g., a modified duration of 1.5 indicates that when and if a 1% change in market interest rates occurs, a 1.5% change in the value of a security will result. Investments with modified durations of one to three are considered to be relatively conservative.

Money Market — the market in which short -term debt instruments (Treasury bills, commercial paper, bankers’ acceptances, etc.) are issued and traded.

Money Market Fund — A type of mutual fund that invests exclusively in short-term investments.

Nationally Recognized Statistical Rating Organizations (NRSRO) — a credit rating agency (CRA) that issues credit ratings which the U.S. Securities and Exchange Commission (SEC) permits other financial firms to use for certain regulatory purposes.

Offer — price at which someone who owns a security offers to sell it, also known as the asked price.

Open Market Operations — activities by which the Securities Department of the Federal Reserve Bank of New York, popularly called the desk, carries out instructions of the Federal Open Market Committee designed to regulate the money supply. Open market operations are the Feder al Reserve’s most important and most flexible monetary policy tool.

Portfolio — collection of securities held by an investor.

Primary Dealer — investment dealers authorized to buy and sell government securities in direct dealings with the Federal Reserve B ank of New York in its execution of Fed Open Market Operations. Such dealers must be qualified in terms of reputation, capacity, and adequacy of staff and facilities.

Prudent Investor Rule — an investment standard. In California, persons authorized to mak e investment decisions on behalf of a local agency are considered trustees and therefore fiduciaries subject to the Prudent Investor Rule. A trustee may invest in a security if it is one which would 141
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24 be bought by a prudent person of discretion and intelligence who is seeking a reasonable income and preservation of capital.

Rate of Return — the yield obtainable on security based on its purchase price or its current market price.

Repurchase Agreement (RP or REPO) — agreement between a seller and a buyer, usually of U.S. government securities, whereby the seller agrees to repurchase the securities as an agreed upon price and usually, at a stated time. 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.

Required Reports — Section 53646 of the California Government Code specifies that certain information may be periodically transmitted to the City's governing body and chief executive officers by the City's chief fiscal or investment officer.

Safety — the ability of a security issuer to guarantee redemption of their security.

Safekeeping — sees custody
Secondary Market — a market made for the purchase and sale of outstanding issues following the initial distribution.

Securities & Exchange Commission (SEC) — an agency created by Congress to protect investors in securities transactions by administering securities legislation.

SEC Rule 15C3-1 — see Uniform Net Capital Rule.

Time Deposit — a savings account or certificate of deposit held in a financial institution for a fixed term.

Treasury Bills — a non-interest bearing discount security issued by the U.S. Treasury to finance the national debt. Treasury Bills have a maturity of one year or less.

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 one to ten years.

Uniform Net Capital Rule — Securities and Exchange Commission requirement that all SEC registered broker/dealers maintain sufficient liquid resources to promptly satisfy their liabilities, including all claims by customers, creditors and other broker-dealers. The rule requires broker- dealers to maintain the greater of (1) a specified percentage of net capital as it relates to either total broker indebtedness or total customer receivables, or (2) a specified dollar amount.

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Resolution No. 2022-54
Exhibit “A”

25 Yield -The annual rate of return on an investment generally expressed as a percentage of the securities current price.
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STAFF REPORT

May 11, 2022
File Number 0480-70

SUBJECT
FY2021 URBAN AREA SECURITY INITATIVE (UASI) GRANT PROGRAM AND BUDGET ADJUSTMENT

DEPARTMENT
Fire

RECOMMENDATION
Request the City Council to accept a FY 2021 Urban Area Security Initiative (“UASI”) Grant Award in the amount of $31,000; request the City Council to accept a FY2020 UASI Grant Amendment in the amount of $57,140; authorize the Fire Chief or his designee to execute grant documents on behalf of the City of Escondido (“City”); and approve the budget adjustment needed to spend grant funds (see Attachment “1”).

Staff Recommendation: Approval (Fire Department: Rick Vogt) Presenter: Art Holcomb, Fire Division Chief

FISCAL ANALYSIS
None.

PREVIOUS ACTION
On August 25, 2021, the City Council authorized the Escondido Police Department to accept $258,236 in funds from a FY2020 UASI Grant.

On March 2, 2022, City Council authorized the Fire Depart ment to accept $85,230 in funds from the FY2020 Award Amendment.

BACKGROUND
The Escondido Fire Department received a FY 2021 UASI Grant in the amount of $31,000. UASI funds support regional efforts to prevent, mitigate, respond to, and recover from acts o f terrorism or disaster.

The Urban Area Working Group (UAWG) vetted and approved Escondido’s proposed UASI projects.

The FY 21 UASI grant will fund tuition/registration costs for Escondido firefighters to attend the following training courses: Low Angle Rope-Rescue, Rescue Systems 1, Rescue Systems 2 and Rope Rescue Technician. This training will enhance the technical rescue skills and abilities of firefighters so they are prepared when emergency rescue is necessary.
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The Escondido Fire Department received a FY 2020 UASI Grant Amendment in the amount of $57,140.

These funds will be used to complete the Next Generation Regional Communications Interoperability Project (NGRCIP) that will fully connect Escondido Fire’s Computer Aided Dispatch (“CAD”) system to the other Fire CADs in the County.

The intent of the NGRCIP or “CAD2CAD” is to enhance fire and emergency services to achieve improved interoperability through the real time sharing of resource status, locations, requests for service (mutual or automatic aid) and other mission critical information. A regional next-generation CAD-to-CAD solution will promote further efficiency among the member agencies and continue to provide improved customer service to the communities they serve by increasing situational awareness and decreasing processing, reflex and response times. The CAD -to-CAD Project will enhance critical regional emergency communication.

In an effort to maintain consistency and interoperability between the current equipment and CAD software service , and in accordance with the City of Escondido Municipal Code Sec. 10 -102(b), the procurement for this project will be from a single source.

ATTACHMENTS

1. Attachment “1” – Budget Adjustment
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FM\105 (Rev.11/06)

C I T Y O F E S C O N D I D O

BUDGET ADJUSTMENT REQUEST
Date of Request: 04/19/22 For Finance Use Only
Log #
Fiscal Year ear
Department: Fire Department
Division: Administration
Project/Budget Manager: Laura Costello 5408
Name Extension
Council Date (if applicable): 05/11/2022
(attach copy of staff report)
_____ Budget Balances
_____ General Fund Accts
_____ Revenue
_____ Interfund Transfers
_____ Fund Balance
Project/Account Description Account Number Amount of Increase Amount of Decrease Revenue 4128-451-New Project Number $31,000
Fire Grants 451-New Project Number $31,000
UASI20 451-UASI20 57,140
Federal Grant Revenue 4128-451 57,140
Explanation of Request:

A budget adjustment is needed to spend FY 2021 and FY 2020 Urban Area Security Iniative (UASI) funds.

APPROVALS

Department Head Date City Manager Date

Finance Date City Clerk Date
Distribution (after approval): Original: Finance
DocuSign Envelope ID: 461D7C82-C756-4569-BFBF-7B4CB28ABB1D 5/2/2022
5/2/2022
Attachment "1"
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STAFF REPORT

May 11, 2022
File Number: 0600-95

SUBJECT
GRAND VISION PROJECT PHASE I; - REQUEST THE CITY COUNCIL AUTHORIZE CHANGE ORDERS FOR

THE GRAND VISION PROJECT PHASE I

DEPARTMENT
Engineering Services

RECOMMENDATION
Request the City Council adopt Resolution No. 2022-57 to authorize change orders for the Grand Vision Project Phase I (Project).

Staff Recommendation: Approval (Engineering Services Department: Julie Procopio)

Presenter: Jonathan Schauble

FISCAL ANALYSIS
The Grand Vision Project Phase I is funded with a competitive Smart Growth Incentive Program (SGIP) grant administered by S ANDAG and with matching TransNet funds . The total Phase I Project budget as programmed in the Capital Improvement Program is $2,259,326. During construction , unforeseen conditions, including an unmarked water line, buried concrete and unsuitable soil, necessitated construction change orders in the amount of $96,620.04. In addition, Staff requests authority to approve future change orders up to an amount of $60,000 to add a perimeter railing and planters to support on- street dining between Phase I and II . Staff estimates that approximately ten businesses will request Temporary Use Permits and each setup will cost approximately $6,000 for purchasing the materials and having it delivered to the site and installed. There are adequate funds in the Project account to fund these change orders.

PREVIOUS ACTION
On February 14, 2018, the City Council approved the Grand Avenue Vision Plan that was developed through a public process that included multiple stakeholders, including downtown merchants, property owners, residents and technical professionals, and authorized grant applications.

On February 13, 2019, the City Council approved a SGIP grant agreement and related budget adjustment for the Project.
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On August 21, 2019, the City Council approved a Consulting Services Agreement with Kimley -Horn and Associates to complete environmental clearance for the Grand Avenue Vision Plan and engineering design of the Phase I Project.

On July 21, 2021, the City Council approved an environmental document (Mitigated Negative Declaration) for the Grand Avenue Vision Plan.

On September 15, 2021, the City Council adopted Resolution No. 2021 -126, authorizing the award of a construction contract to the lowest responsive and responsible bidder , 3Sixty Innovation, Inc. , in the amount of $994,776.50.

BACKGROUND
The Grand Vision Plan is a streetscape improvement plan for Escondido’s historic downtown aimed at improving walkability and creating a pedestrian -friendly environment between Juniper Street and Escondido Boulevard. The Project narrow s Grand Avenue to one lane in each direction, provide s wider sidewalks, increases parking opportunities via diagonal parking, and remove s center medians. Future phases of the plan include additional sidewalk widening and installation of three (3) traffic circles on Grand Avenue (Maple Street, Broadway, and Kalmia Street).

Phase I of the Grand Vision Plan is substantially complete. Among the many improvements, the Project has widened the sidewalk on the north side of Grand Avenue between Maple Street and Broadway, installed irrigation and landscaping, removed center m edians, installed decorative lighting, provide d diagonal parking, installed an ADA parking stall, and resurfaced the roadway. Several components of the Phase I, including sidewalk widening and fencing, have been completed. The final component of the project, the festoon lighting, is anticipated to be complete by May 23, 2022.

Phase II of the Grand Vision Plan will widen the sidewalk on Grand Avenue from Maple Street to Juniper Street and will install a traffic circle at the intersection of Grand Avenue and Broadway. Engineering design of Phase II will occur this year with construction expected during 2023.

RESOLUTIONS
A. Resolution No. 2022-57

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RESOLUTION NO. 2022-57

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF ESCONDIDO, CALIFORNIA, AUTHORIZING
CHANGE ORDERS WITH 3SIXTY INNOVATION, INC.

FOR THE GRAND VISION PROJECT PHASE I.

WHEREAS, the City Council has allocated funding in th e adopted Capital Improvem ent Program Budget for the Grand Vision Project Phase I; and
WHEREAS, 3Sixty Innovation In c. was determin ed to b e the lowes t responsive and responsible bidder and awarded a construction contract on September 15, 2021; and WHEREAS, th e City Counci l d esires and deem s it to b e in the best publi c interest to approve construction change orders in the amount of $96,620.04 to 3Sixty Innovation Inc.; and WHEREAS, the City Council desires and deems it to be in the best public interest to authorize staff to approve additional change orders of up to $60,00 0 to add a perimeter railing and planters to support on-street dining between Phase I and II.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Escondido, California:

1. That the above recitations are true.

2. That the City Council approves Resolution No. 2022-57 authorizing the City Manager, the City Engineer, or their designee to execute, on behalf of the City, construction change orders with 3Sixty Innovation Inc. in the amount of $96,620.04 to 3Sixy Innovation, Inc.

3. That staff is authorized to approve additional change orders of up to $60,000. 148
Item12.

STAFF REPORT

May 11, 2022
File Number 1320-10

SUBJECT

APPROVAL OF FUNDS FOR LAKE HENSHAW ALGAE MITIGATION ACTIVITIES

DEPARTMENT
Utilities Department, Water Division

RECOMMENDATION
It is requested that the City Council adopt Resolution 202 2-55, agreeing to equally share the cost of managing, mitigating, and treating harmful algal blooms in Lake Henshaw. The cost of algae mitigation shall be split equally between the City of Escondido (“City”) and the Vista Irrigation District (“VID”) pursuant to the Agreement Between the City of Escondido and the Vista Irrigation District for the Allocation and Management of Local Water Facilities , executed in January 2017 (“Local Entities’ Agreement”). The City of Escondido’s share of the cost for algae mitigation shall not exceed $300,000.

Staff Recommendation: Approval (Utilities Department, Water Division: Christopher W. McKinney) Presenter: Reed Harlan, Deputy Director of Utilities; Water

FISCAL ANALYSIS
The Water Enterprise Fund, fiscal year budget 2022-2023, will fund the City of Escondido’s cost-share for algae mitigation services. The Water Enterprise Fund’s 2022-2023 fiscal year budget will be presented by the Finance Department in June 2022 for the City Council ‘s consideration and approval.

PREVIOUS ACTION
On January 25, 2017, the City Council adopted Resolution No. 2017-20, authorizing the City to enter into a Global Agreement with the Vista Irrigation District for the allocation and management of local water facilities (“Local Entities Agreement .”) On February 10, 2021, the City Council adopted Resolution No. 2021-26, authorizing the City to equally share the cost of obtaining the c onsulting services of Stillwater Ecosystem, Watershed & Riverine Services (“Stillwater”) to develop strategies to manage, mitigate, and treat harmful algal blooms in Lake Henshaw and Lake Wohlford.

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BACKGROUND
The City and VID jointly own and operate a raw, drinking-water system that supplies critical local water for both agencies. This supply has historically accounted for 25% of the City’s drinking water supply and offsets some of the need for more expensive imported water from the Colorado River and Northern California.

Much of the local water system, including the Escondido Canal, is jointly owned and operated by the City and VID. However, the two lakes in the system are each owned by a single agency: Lake Henshaw is owned by VID and Lake Wohlford is owned by the City. The cost of operating and maintaining each lake is the responsibility of the owning agency, except for work to maintain or improve the quality of the shared water supply.

Pursuant to the terms of the Local Entities’ Agreement, the S an Luis Rey Indian Water Rights Settlement Agreement, and Implementing Agreement, costs of work to maintain or improve quality of the shared water supply shall be split between the City and VID by mutual agreement. VID has, in the past, shared equally in the cost of maintaining water quality in Lake Wohlford as the lake’s water quality is critical to both agencies. The same is true of Lake Henshaw, which sits at the very head of the local water system.

Over the past few years, algal blooms have caused water quality problems in lakes across the region. High temperatures, below average rainfall, and tightening regulations all contribute to the increased frequency of water quality problems related to algal blooms. In Lake Henshaw, recent blooms have been dominated by the microcystin algae. Microcystin algae has the potential to carry cyanotoxin bacteria, which is toxic for plants, animals, and people. Algal blooms in 2020 caused restrictions in recreational use and prevented delivery of water from Lake Henshaw via the Escondido Canal to Lake Wohlford.

The City and VID desire to treat the water in Lake Henshaw, which is the collection basin for our local water system, to help control harmful algal blooms. To achieve this, VID will procure the services of a licensed contractor that specializes in the application of algaecides and other chemicals. The City and VID anticipate these services will take place over the next year and will help secure the future of our local water supplies.

Given the importance of combating harmful algal blooms in the local water supply, staff recommends sharing the cost of algae mitigation.

RESOLUTIONS
A. Resolution No. 2022-55

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RESOLUTION NO. 2022-55

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ESCONDIDO, CALIFORNIA, AUTHORIZING THE MAYOR

TO EXECUTE, ON BEHALF OF THE CITY, APPROVING THE
ALLOCATION OF $300,000 FOR ALGAE MITIGAT ION AT

LAKE HENSHAW AS PART OF THE WATER

MAINTENANCE COST SHARING BETWEEN THE CIT Y OF

ESCONDIDO AND VISTA IRRIGATION DISTRICT

WHEREAS, the City of Escondido (“City) and the Vista Irrigation District (“VID”) own and operate a local raw water storage and conveyance system; and
WHEREAS, the City and VID entered into an Agreement for the Allocation and Management of Local Water Facilities (“Local Entities’ Agreement”) in January 2017; and WHEREAS, harmful algal blooms have been an ongoing issue in the local raw water storage and conveyance system. At times, the harmful algal blooms have inhibited the use of the local water supply; and
WHEREAS, the City and VID believe that they need to manage, mitigate, and treat harmful algae blooms; and
WHEREAS, the City’s share of the cost for algae mitigation shall not exceed $300,000.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Escondido, California:

1. That the above recitations are true.

2. That the City Council authorizes the allocation of funds to manage, mitiga te and treat harmful algal blooms in Lake Henshaw in the amount not to exceed $300,000. 151
Item13.

A COMPLETE COPY OF

THIS ORDINANCE IS

ON FILE IN THE OFFICE

OF THE CITY CLERK
FOR YOUR REVIEW.

ORDINANCE NO. 2022-07

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF

ESCONDIDO, CALIFORNIA, APPROVING THE ESCONDIDO

POLICE DEPARTMENT MILITARY EQUIPMENT USE POLICY

WHEREAS, On September 30, 2021, Governor Gavin Newsom signed into law Assembly Bill 481 to regulate the use of military equipment by law enforcement agencies; and WHEREAS, Assembly Bill 481, codified at California Government Code section 7070 et seq., requires law enforcement agencies to obtain approval of the applicable governing body, by an ordinance adopting a military equipment use policy, at a regular meeting held pursuant to open meeting laws, prior to taking certain actions relating to the funding, acquisition, or use of military equipment; and WHEREAS, California Government Code section 7070 defines the terms “military equipment” and establishes the minimum requirements for a “military equipment use policy”; and WHEREAS, California Government Code section 7071 requires the governing body determine, prior to approving a military equipment use policy, the following:
a. The military equipment is necessary because there is no reasonable alternative that can achieve the same objective of officer and civilian safety. b. The proposed military equipment use policy will safeguard the public's wel fare, safety, civil rights, and civil liberties.
c. If purchasing the equipment, the equipment is reasonably cost effective compared to available alternatives that can achieve the same objective of officer and civilian safety. d. Prior military equipment use complied with the military equipment use policy that was in effect at the time, or if prior uses did not comply with the accompanying military equipment use policy, corrective action has been taken to remedy nonconforming uses and ensure future compliance; and 154
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STAFF REPORT

May 11, 2022
File Number 0600-10

SUBJECT

APPROVAL TO EXECUTE A WATER INFRASTRUCTURE FINANCE AND INNOVATION ACT (WIFIA) LOAN

FOR THE LAKE WOHLFORD DAM REPLACEMENT PROJECT

DEPARTMENT
Utilities Department, Construction and Engineering Division

RECOMMENDATION
Request the City Council take the following actions:
1) Adopt Resolution No. 2022 -03, approving execution of a loan agreement in a n amount not to exceed $66,000,000 from the U.S. Environmental Protection Agency, Water Infrastructure Finance and Innovation Act ( “WIFIA”) Program for construction costs associated with the Lake Wohlford Dam Replacement Project.
2) Authorize the Mayor, or his designee, to execute all documents related to this transaction.

It is requested that the Escondido Joint Powers Authority adopt Resolution No. EJPFA 2022 -01, authorizing the execution and delivery of a WIFIA Loan Agreement, a WIFIA Note, an Installment Purchase Agreement, and certain documents and other matters in connection therewith (water system).

Staff Recommendation: Approval (Utilities: Christopher W. McKinney) Presenter: Angela Morrow, Deputy Director of Utilities

FISCAL ANALYSIS
The estimated cost of construction of the Lake Wohlford Dam Replacement Project is $88.5 million dollars, an amount much greater than the 2012 preliminary cost estimate of $30 million dollars. The cost of environmental mitigation for the project is estimated to be about $3.5 mil lion. For purposes of this authorization, the construction costs, plus environmental permitting and mitigation costs, design costs, and a 15% allowance for contingency, produces a total project cost as high as $132.9 million. Staff does not anticipate that the total project cost will be as high as indicated; however, contingencies have been added to accommodate potential unforeseen issues during construction. Project cost estimates are conservative because once the loan closes, the amount of the loan cannot be increased.

In 2013, the City of Escondido (“City”) was awarded a Proposition 1E, Round 1 Stormwater Flood Management Grant from the State of California Department of Water Resources in an amount up to $14.9 million for construction of the Lake Wohlford Dam Replacement Project, which will provide for a portion 155
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of the project costs. The grant has a 50% match requirement which must be met with non-state (local or federal) funds.

In January 2021, the City applied to the Federal Emergency Management Agency’s (“FEMA’s”) Building Resilient Infrastructure and Communities (“BRIC”) program for the Wohlford Dam Replacement Project.

In July 2021, the City was notified that the Project was not selected for a BRIC grant.

The requested loan is provided through the U.S. Environmental Protection Agency (“EPA”), Water Infrastructure Finance and Innovation Act Program. The WIFIA loan cannot exceed 49% of reasonable anticipated total eligible project costs. Eligible project costs include costs related to : planning; design; environmental documentation, permitting and mitigation; construction; construction management and inspection; and project contingencies . The remaining 51% of project costs must be provided by non- federal (state and local) funds.

The proposed WIFIA loan amount is currently estimated to be $65,147,348 with a maturity date of July 1, 2062, approximately 35 years starting at the estimated substantial completion of construction date of July 30, 2027. This amount assumes a 15% project-level contingency and could be reduced if construction bid costs are lower. The loan agreement will include a one-time opportunity after substantial completion is reached to shorten the maturity if the City so chooses.

The interest rate for WIFIA loans is equal to the yield on U.S. State and Local Government Securities (“SLGs”) relative to the projected weighted average life of the loan plus 1/100th of a percent. The rate changes on a daily basis, and the rate as of March 30, 2022, was 2.72 percent, based on a projected 25.5 year weighted average term. As a condition of closing, the City will be required to deliver a final rating opinion letter from a nationally recognized statistical rating agency. The final rating letter must be a public rating and should specifically evaluate the WIFIA loan’s default risk and contemplate the full life of the WIFIA loan.

At this rate and term, and assuming that the City does not make any principal pre -payments, the total amount repaid ove r 35 years will be approximately $107.89 million ($65.15 million in principal, $ 42.74 million in interest). The City will make payments under the Agreement solely from revenues of the City’s water system in excess of operation and maintenance costs. Such payments will be on parity with existing water system obligations, including the 2019A and 2019B bond issues, two State Revolving Fund loa ns, and two IBank loans. Payments under the Agreement are not an obligation of the General Fund or other City funds other than the Water Fund.

Annual debt service payments on this loan will be approximately $2.9 million, subject to the final loan amount and interest rate at closing. In FY 2021, the Water Fund debt coverage ratio was 2.30, in excess of the debt coverage required by the Water Fund’s bond covenants (1.20). The debt service payments required by the WIFIA loan would have reduced the Water Fun d debt coverage to 2.14 if loan payment 156
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had been due at that time. While the new proposed debt will decrease the debt coverage ratio, the ratio will remain well in excess of the required minimum.

PREVIOUS ACTION
On September 16, 2020, the City Council: 1) adopted Resolution No. 2020-137, assuring that if an award is received from the Federal Emergency Management Agency’s (“FEMA’s”) Building Resilient Infrastructure and Communities (“BRIC”) program, the City of Escondido w ould provide the necessary non-federal matching funds ; 2) directed staff to move forward with the construction of a new, replacement dam; and 3) directed staff to proceed with Letters of Interest and to apply, if invited, for a WIFIA loan and FEMA BRIC grant.

BACKGROUND
Lake Wohlford Da m (“Dam”) was constructed with earth and rock in 1895 as part of Escondido’s local water system. In 1925, the dam was raised to its current height using a slurry hydr aulic fill process. In 2007, during a routine seismic evaluation of the dam, the Califor nia Division of Safety of Dams (“DSOD”) determined that the newer, hydr aulic fill section of the dam has the potential to liquefy and fail in the event of a large earthquake with magnitude greater than 7.5.

In response to these potential seismic concerns, the City immediately lowered the water level of Lake Wohlford so that the maximum level of the lake does not exceed the level of the original, seismically - sound rock structure. The lake has been operated at this level until the present day and continues t o provide recreational opportunities and local water storage.

A design for a new, replacement dam to be constructed just downstream of the existing dam was completed. Design development included a lengthy review process involving the DSOD, the Federal Energy Regulatory Commission (“FERC”), and a panel of dam experts convened to oversee the dam design process. The Project elements include: (a) dam construction downstream of the existing dam; (b) new spillway construction; (c) new outlet tower construction; and (d) partial demolition of the existing dam.

On October 13, 2020, the City submitted a Letter of Interest in response to the EPA’s 2020 Notice of Funding Availability for the WIFIA Program for funding for the Lake Wohlford Dam Replacement Project.

On January 8, 2021, the City was notified that the Project was selected to apply for a WIFIA loan. The City submitted a complete application for WIFIA assistance on April 28, 2021.

The benefits of financing through the WIFIA Program include:
 Fixed interest rate established at closing
 No penalty for prepayment
 No matching fund requirement
 Can be used in conjunction with state funding
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 Low-cost, long-term loans, up to 35-year repayment
 Customized repayment schedules
 Repayment of principal delayed until after substantial completion of the Project  Technical assistance
WIFIA staff are currently conducting the National Environmental Policy Act (“NEPA”) environmental review process for the Project. The WIFIA loan cannot close until the NEPA review process has been completed. The City is seeking approval of the WIFIA Loan at the present time as the WIFIA program will be implementing new requirements that conform to the Build America Buy America Act ( “BABAA”) beginning on May 14, 2022. Current cost estimates are based on the Project ’s conformance with the existing American Iron and Steel ( “AIS”) Requirements. Precise regulatory requirements and/or exceptions for WIFIA loans to comply with BABAA have no t yet been established, however City staff believes that compliance with BABAA at this stage of design/development could cause significant delays and cost increases, and create uncertainty in the event some materials related to the Project cannot be sourced in compliance with BABAA. EPA staff informed the City that any WIFIA term sheet executed, and loan agreement approved prior to May 14, 2022, would not be subject to BABAA.

To carry out the funding, the City has retained the firms of CSSG Advisors Incorporated, as Municipal Advisor; and Stradling Yocca Carlson & Rauth as Bond Counsel.

The following documents, as referred to within Resolution s No. 2022-03 and EJPFA 2022-01 are to be approved:

WIFIA Term Sheet . The WIFIA Term Sheet provides the terms and conditions of the WIFIA transaction. (See Attachment “1”)
WIFIA Loan Agreement. Under the WIFIA Loan Agreement, the Financing Authority agrees to issue a Note to the EPA in order to repay the loan from the EPA. The WIFIA Loan Agreement includes the terms and conditions of the WIFIA transaction as set forth in the term sheet as well as representations, warranties and covenants of the City and the Financing Authority, a description of the flow of funds that will be applied to repay the borrowing and a descri ption of events of default and remedies under the WIFIA transaction. Important covenants in the WIFIA Loan Agreement include the City’s covenant to set water system rates and charges at levels that are sufficient to repay the obligation and the terms and conditions under which the City can issue additional water system debt. (See Attachment “2”) Installment Purchase Agreement. The Installment Purchase Agreement establishes the obligation of the City to repay the moneys borrowed under the Note from pledged water system revenues. Under the Installment Purchase Agreement, the Financing Authority will sell the capital improvements (the reconstructed Wohlford Dam) to the City in exchange for installment payments payable by the City, which installment payments w ill be assigned by the Financing Authority to the EPA to repay the Note. (See Attachment “3”)
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WIFIA Note. The WIFIA Note is a promissory note that evidences the Financing Authority's obligations to repay the loan. (See Attachment “4”)
The above referenced documents will be in final form subsequent to the loan closing.

RESOLUTIONS
A. Resolution No. 2022-03
B. Resolution No. 2022-03 Exhibit “A”
C. Resolution No. EJPFA 2022-01
D. Resolution No. EJPFA 2022-01 Exhibit “A”

ATTACHMENTS
A. Attachment “1” - WIFIA Term Sheet
B. Attachment “2” – WIFIA Loan Agreement
C. Attachment “3” – Installment Purchase Agreement
D. Attachment “4” – WIFIA Note

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RESOLUTION NO. 2022-03

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ESCONDIDO AUTHORIZING THE EXECUTION AND

DELIVERY OF AN INSTALLMENT PURCHASE AGREEMENT

PROVIDING FOR THE ACQUISITION OF CERTAIN

IMPROVEMENTS AND THE EXECUTION OF CERTAIN

OTHER DOCUMENTS AND OTHER MATTERS IN

CONNECTION THEREWITH (WATER SYSTEM)

WHEREAS, the City of Escondido (“City”), a municipal corporation that is duly organized and existing under the general laws of the State of California (“State”), proposes to undertake the acquisition and construction of certain improvements to the City’s water system, including the replacement of Lake Wohlford Dam, as more particularly described in the WIFIA Loan Agreement (as such term is defined and referenced below) (“Project”); and
WHEREAS, in order to acquire and construct the Project, the City proposes to enter into an Installment Purchase Agreement (“Ins tallment Purchase Agreement”) with the Escondido Joint Powers Financing Authority (“Authority”), pursuant to which the Authority will finance the acquisition and construction of the Project and convey the Project to the City and the City will make installm ent payments to the Authority in consideration thereof; and WHEREAS, in order to fulfill its obligation to the City under the Installment Purchase Agreement, the Authority proposes to obtain a loan under the authority of the Water Infrastructure Finance an d Innovation Act (“WIFIA Loan”) from the United States Environmental Protection Agency, acting by and through the Administrator of the Environmental Protection Agency (“WIFIA Lender”), pursuant to a loan agreement (“WIFIA Loan Agreement”) entered into by a nd among the Authority, the WIFIA Lender and the City; and
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WHEREAS, the terms of the proposed WIFIA Loan are set forth in a term sheet (“WIFIA Term Sheet”) and the WIFIA Loan Agreement; and
WHEREAS, the City has agreed to execute the Installment Purchase A greement, execute and perform certain obligations under the WIFIA Loan Agreement and execute the WIFIA Term Sheet, in each case to provide certain assurances with respect to the Project to the WIFIA Lender; and WHEREAS, pursuant to Government Code Section 5852.1, certain information relating to the Installment Purchase Agreement is set forth in Exhibit “A” attached to this Resolution, and such information is hereby disclosed and made public.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Escondido:

1. The Installment Purchase Agreement in substantially the form on file with the City is hereby approved. The Mayor, the Deputy Mayor, the City Manager, any Deputy City Manager, the Finance Director, or the Director of Utilities (each, an “Authorized Officer”) or the designee thereof are each hereby individually authorized and directed to execute and deliver the Installment Purchase Agreement with such changes, insertions and omissions as may be recommen ded by the City Attorney or Stradling Yocca Carlson & Rauth, a Professional Corporation (“Bond Counsel”), and approved by the person executing the same, said execution being conclusive evidence of such approval; provided, however, that the principal compon ents of the installment payments which are payable under the Installment Purchase Agreement shall not exceed $66,000,000.

2. The WIFIA Term Sheet and the WIFIA Loan Agreement in substantially the form s on file with the City are hereby approved. The Authorized Officers are each hereby individually authorized and directed to execute and deliver the WIFIA Term Sheet and the WIFIA Loan Agreement with such 304
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changes, insertions and omissions as may be recomme nded by the City Attorney or Bond Counsel and approved by the person executing the same, said execution being conclusive evidence of such approval.

3. Notwithstanding anything to the contrary set forth in this Resolution, the WIFIA Term Sheet or the WIFIA Loa n Agreement, the City is not a borrower with respect to the WIFIA Loan, the WIFIA Note or the WIFIA Loan Agreement and the City has no obligation to make any payment or provision for payment of the WIFIA Loan or the WIFIA Note. The WIFIA Loan Agreement sh all not constitute a contract between the City and the WIFIA Lender by which the City incurs an indebtedness.

4. The Authorized Officers and any other proper officer of the City, acting singly, be and each of them hereby is authorized and directed to execute and deliver any and all documents and instruments and to do and cause to be done any and all acts and things necessary or proper for carrying out the transactions contemplated by the Installment Purchase Agreement, the WIFIA Term Sheet, the WIFIA Loan Agre ement and this Resolution , and all actions heretofore taken by any committee of the City Council, or any official, officer, employee, representative or agent of the City, in connection with the authorization, execution, delivery, or performance of the City ’s obligations under the documents and instruments approved or authorized by this Resolution, and the other actions contemplated by this Resolution, are hereby ratified, approved and confirmed . In the event that the Mayor of the City is unavailable to sign any of the agreements described herein, the Deputy Mayor or any other member of the City Council may sign such agreement.

5. The good faith estimates of costs related to the Installment Purchase Agreement which are required by Section 5852.1 of the California Government Code are disclosed in Exhibit A hereto and are available to the public at the meeting at which this Resolution is approved. 305
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6. Unless otherwise defined herein, all terms used herein and not ot herwise defined shall have the meanings given such terms in the WIFIA Loan Agreement unless the context otherwise clearly requires.

7. This Resolution shall take effect from and after its date of adoption.

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4880-5306-9845v3/022009-0052

EXHIBIT A

GOOD FAITH ESTIMATES
The good faith estimates set forth herein are provided with respect to the Installment Purchase Agreement in accordance with California Government Code Section 5852.1. Such good faith estimates have been provided to the City by CSG Advisors Incorporated (the “Municipal Advisor”).

Principal Amount. The Municipal Advisor has informed the City that, based on the City’s financing plan and current market conditions, its good faith estimate of the aggregate principal amount of the Installment Purchase Agreement is $65,147,348 (the “Estimated Principal Amount”).

True Interest Cost . The Municipal Advisor has informed the City that, assuming that the Installment Purchase Agreement is entered into in the Estimated Principal Amount, and based on market interest rates prevailing at the time of preparation of such estimate, its good faith estimate of the true interest cost of the Installment Purchase Agreement, which means the rate necessary to discount the amounts payable on the respective principal and interest payment dates to the purchase price received for t he Installment Purchase Agreement, is 2.72%.

Finance Charge . The Municipal Advisor has informed the City that, assuming that the Installment Purchase Agreement is entered into in the Estimated Principal Amount, and based on market interest rates prevailing at the time of preparation of such estimate, its good faith estimate of the finance charge for the Installment Purchase Agreement, which means the sum of all fees and charges paid to third parties (or costs associated with the Installment Purchase Agreement), is $300,000.

Amount of Proceeds to be Received . The Municipal Advisor has informed the City that, assuming that the Installment Purchase Agreement is entered into in the Estimated Principal Amount, and based on market interest rates prevailing at the time of preparation of such estimate, its good faith estimate of the amount of proceeds expected to be received by the City, less the finance charge as estimated above, and any reserves or capitalized interest paid or funded with proceeds of the Installment Purchase Agreement, is $64,847,348.

Total Payment Amount . The Municipal Advisor has informed the City that, assuming that the Installment Purchase Agreement is entered into in the Estimated Principal Amount, and based on market interest rates pr evailing at the time of preparation of such estimate, its good faith estimate of the total payment amount, which means the sum total of all payments the City will make to pay debt service on the Installment Purchase Agreement, plus the finance charge as de scribed above, not paid with the proceeds of the Installment Purchase Agreement , calculated to the final maturity of the Installment Purchase Agreement, is $107,886,180.

Resolution No. 2022-03
Exhibit "A"