October 7 City Council Agenda
AGENDA - OCTOBER 7, 2024.PDF
October 7 City Council Agenda Packet
CC PACKET - OCT 7, 2024.PDF
1. Documents:
1.I.
Documents:
COUNCIL REGULAR MEETING AGENDA
Tim Hepburn, Mayor
Wendy Lau, Council Member
Steven Frank Johnson, Mayor Pro Tem
Rick Crosby, Council Member
Meshal "Kash" Kashifalghita, Council Member
Monday, October 7, 2024
Regular Meeting at 6:30 PM
La Verne City Hall - Council Chambers,
3660 D Street, La Verne, CA 91750
In compliance with the American Disabilities Act, any person with a disability who requires a modification or accommodation to participate in a meeting should contact the City Clerk’s Office at (909) 596-8726 at least 48 hours prior to the meeting. Regular Meetings are held on the 1st and 3rd Monday of every month.
Individuals can email their comments to the City Clerk's Office at [email protected] up to noon on the day of the meeting. Those comments will be shared with City Council in advance of the City Council meeting and included as part of the permanent record. Please be advised that public comments submitted by emails or any other format to the City are public records that will be made available for public viewing.
Individuals who wish to share their comments with Council during the meeting may do so in a variety of ways:
• Attend the City Council Meeting in person and fill out a comment card or raise your hand to request to comment on the current agenda item(s).
• Participate via Zoom, by visiting cityoflaverne.org/zoom where you will be automatically redirected to the meeting or call into the meeting via phone 1-669-900-6833 and enter ID 829 0843 5231 when prompted. Public comments via Zoom may be accepted for the agenda items listed within the Consent Calendar, Public Hearing and Other Matters sections of the agenda. Zoom participants who violate decorum protocols will be called to order by the presiding officer and if a violation continues, will be muted by direction of the presiding officer. • Once items are considered by the City Council, no further public comment on that matter will be accepted. A time limit of 3-minutes is set for all public comments.
Council Meeting Decorum: Per the City’s Rules for Decorum, all Speakers and Members of the Audience are to conduct themselves with decorum and not engage in willful conduct which interrupts the meeting or with the orderly conduct of the meeting.
CALL TO ORDER
PLEDGE OF ALLEGIANCE - ADRIAN ROMERO, ARMY SPECIALIST E-4 AGENDA City Council 10/7/2024 Page 2
ROLL CALL Council Member Meshal “Kash” Kashifalghita, Council Member Wendy Lau, Council Member Rick Crosby, Mayor Pro Tem Steven F. Johnson, and Mayor Tim Hepburn.
PRESENTATIONS
Introduction to University of La Verne Interim President Risa Dickson. Risa Dickson, PhD, brings nearly three decades of experience in higher education, and 25 years of higher education administrative experience. Throughout her career, Dr. Dickson has focused on fostering collaborative governance, strategic planning, and academic excellence. Dr. Dickson joined the University as the interim provost in January.
Hispanic Heritage Month Proclamation. Hispanic Heritage Month is celebrated annually from September 15 to October 15 to recognize the contributions and influence of Hispanic Americans on the history, culture, and achievements of the United States.
Fire Prevention Month Proclamation. Every year, October 2024 is recognized as National Fire Prevention month to raise fire safety awareness and help protect homes and families. The La Verne Fire Department works diligently to protect the community against potential wildfires and during this time will provide a few tips residents implement to prevent fires. 2024 Pink Patch Project. The La Verne Police Department will present an overview of the Pink Patch initiative, covering its mission, objectives, and progress in promoting breast cancer awareness and how La Verne Police and other local agencies are participating in this life-saving campaign.
Police Department Promotions. The Police Department has recently promoted several employees to fill existing vacancies after the retirement of employees. These employees include Lieutenant Jay Alvarado, Corporal Alan Weinreb, Corporal Julian Silva, Police Support Services Manager Rebekah Biedermann, Police Services Technician Alyssa Cortez, and Management Analyst Yasmin Potts.
ANNOUNCEMENTS OF UPCOMING COMMUNITY EVENTS
(Any person who wishes to make a brief announcement of a future community event that is open to the public may do so at this time.)
CONSENT CALENDAR
(All items on the Consent Calendar are routine and will be enacted by one motion unless a member of the Council or member of the audience requests separate discussion.)
6. City Council Minutes of the Joint Study Session, Regular Council Meeting & Closed Session of September 16, 2024.
Recommendation: That the City Council approve the minutes of the September 16, 2024, meeting.
7. Register of Audited Demands in the following amounts:
$2,528,414.46 dated 09/11/24
$443,385.88 dated 09/18/24
$3,541,927.88 dated 09/25/24
Recommendation: That the City Council approve the Registers of Audited Demands.
AGENDA City Council 10/7/2024 Page 3
8. Cooperative Agreement between the City of Pomona and City of La Verne for Maintenance of Two Traffic Signals on Fulton Road at Arrow Highway and on Fulton Road at Railroad Tracks Approval of the Cooperative Maintenance Agreement between Cities of Pomona and La Verne which outlines each City's responsibility for traffic signal maintenance and future improvements of two shared intersections at Fulton Road and Railroad Tracks and Fulton Road and Arrow Highway.
Recommendation: That the City Council approve the attached "Cooperative Agreement between City of Pomona and City of La Verne for the Maintenance of Two Traffic Signals on Fulton Road at Arrow Highway and at Railroad Tracks" and authorize the City Manager, or designee, to execute any necessary amendments or documents related to the implementation of the Agreement.
9. Award of Contract to MMC Inc, in the amount of $204,000, for Booster Pump Upgrade - Zone 3 to Zone 4 This action awards a construction contract to MMC Incorporated in the amount of $204,000 with funding in the FY 24/25 Approved CIP “Booster Pump Upgrade – Zone 3 to Zone 4” Project WT2403. The purpose of this booster pump project is to improve current pumping infrastructure to provide increased water reliability during the Water - Plateau Summit Pipeline Replacement Project.
Recommendation: That the City Council:
1. Award a public works construction contract to MMC Incorporated, the lowest, most responsible bidder, in the amount of $204,000 for the Booster Pump Upgrade - Zone 3 to Zone 4 (Proj. No. WT2403); and
2. Authorize staff to issue change orders not exceeding 10% of the construction budget for a total possible cost of $224,400.
10. Rejection of Proposals for Video Management Systems The Police Department has an outdated video management system and plans to replace by using federal grant funding. A Request for Proposals (RFP) was issued, resulting in eight submissions. Based on the proposals received, the City has determined a need to narrow down the scope of work, including the specification of equipment type that best meets the existing facilities at the Police Department and federal requirements related to the federal grant funding.
Recommendation: That the City Council reject all submitted proposals for the Video Management Systems RFP.
11. League of California Cities General Assembly Meeting Voting Delegates The League of California Cities requests the selection of one delegate to vote on behalf of the City at the General Assembly Meeting. It is recommended that the City Council designate Mayor Tim Hepburn as the voting delegate and Mayor Pro Tem Steve Johnson as the alternate voting delegate. The selection must be appointed by the City Council.
Recommendation: That the City Council appoint Mayor Tim Hepburn to represent the City of La Verne as the voting delegate for the League of California Cities General Assembly Meeting and Mayor Pro Tem Steve Johnson as the alternate.
PUBLIC HEARINGS
12. Public Hearing Regarding the Request for Time Extension on Vesting Tentative Tract Map AGENDA City Council 10/7/2024 Page 4
No. 82001 (500 Baseline Road) On September 17, 2024, the City Council set a public hearing for October 7, 2024, to consider a one-year time extension to Vesting Tentative Tract Map (VTTM) No. 82001.
Recommendation: That the City Council adopt a resolution titled "A Resolution of The City Council, City of La Verne, California, Granting a Time Extension to Vesting Tentative Tract (VTTM) Map No. 82001 Pursuant to the Provisions of the TItle 7, Division 2, Chapter 3, of the Government Code of the State of California, establishing the new expiration date of the VTTM No 82001 as November 3, 2025.
OTHER MATTERS
13. Award Construction Contract, in the amount of $3,110,000, to MNR Construction for Plateau Summit Water Pipeline This action will award a construction contract to MNR Construction in the amount of $3,110,000 for the Plateau Summit Water Transmission Pipeline Replacement Project, Proj. No. WT2301. The purpose of the project is to replace approximately 2,000’ of 16” riveted steel transmission mainline that has reached its functional life span.
Recommendation: That the City Council:
1. Award a public works construction contract to MNR Construction Incorporated, the lowest, most responsible bidder, in the amount of $3,110,000 for the Plateau Summit Water Transmission Pipeline Replacement Project (Proj. No. WT2301) and authorize the City Manager to execute the contract; and
2. Authorize staff to issue change orders not exceeding 15% of the construction budget for a total possible construction cost of $3,576,500.
14. Adoption of a Resolution Authorizing the Update to Administrative Regulation 215, Investment Policy and Allow for the Investment of monies into California Class Prime Fund. Adoption of a resolution updating the City's Investment Policy to include the California CLASS Prime Fund, a local government investment pool, as an allowable investment option.
This change aims to diversify the City’s portfolio, optimize interest earnings, and maintain fund safety and liquidity. Approval of this resolution will allow the City to begin investing in the fund, which is already utilized by other government entities, as detailed in the attached report.
Recommendation: That the City Council adopt a Resolution titled, “A RESOLUTION OF THE
CITY COUNCIL OF THE CITY OF LA VERNE, CALIFORNIA, ACKNOWLEDGING RECEIPT AND FILING OF THE CITY’S INVESTMENT POLICY FOR PUBLIC FUNDS AND AUTHORIZING THE INVESTMENT OF MONIES IN THE CALIFORNIA CLASS PRIME FUND.”
PUBLIC COMMENTS
This is the time set aside for anyone wishing to address the City Council on items not listed in any other place on the agenda. Under the provisions of the Brown Act, the legislative body is prohibited from talking or engaging in discussion on any item not appearing on the posted agenda. However, your concerns may be referred to staff or set for discussion later. Please email your public comment to the City Clerk's Office at [email protected]. Your public comment will be shared with the City Council and included as part of the permanent record. There is a 3-minute time limit on public comments.
COUNCIL COMMENTS AND CONFERENCE/MEETING REPORTS
AGENDA City Council 10/7/2024 Page 5
Each Council Member may address the Council and public on matters of general information and/or concern. This is also the time for Council Members to report on conferences and/or meetings they have attended per Assembly Bill 1234.
ADJOURNMENT
Adjournment in Memory of Robert Paul Brannon. Robert was born on April 17, 1956, in Coronado North Island of San Diego County, his parents moved several times before settling in Norwalk, where he graduated from Dominguez High School and immediately joined the U.S. Navy.
He served as a firefighter on the battleship Enterprise during the Vietnam War. After his commitment in the military, he left the service to pursue his college education and subsequently a career in architectural design drafting and computer-aided design drafting, as well as raising a family.
In 2017, he graduated from La Verne CERT training and ascended to a Level 2 which holds the responsibilities of being a part of the activation and deployment team in the event of an emergency. He had an incredible sense of humor which carried him through happy and difficult times in his life. Always the first responder at heart, whether it was a stray dog, an accident on the street, or a person in need he always stepped in to help. He loved the community of La Verne and was happy to live here for almost 10 years.
Robert passed away on August 23, 2024. He is survived by his wife, Hanna, and numerous immediate family members. He will be missed forever.
THE NEXT REGULAR MEETING OF THE LA VERNE CITY COUNCIL IS SCHEDULED FOR MONDAY, OCTOBER 21, 2024, at 5:30 P.M.
AGENDA City Council 10/7/2024 Page 6
RESIDENT INFORMATION
UPCOMING EVENTS AND MEETINGS
Tuesday, October 8 - Active Transportation Committee meeting, City Hall, 5:00 pm - 6:00 pm
Tuesday, October 8 - Ad Hoc Water and Sewer Rate Study Committee meeting, Council Chamber, 6:00 pm - 7:00 pm
Wednesday, October 9 - Planning Commission meeting, Council Chamber, 6:30 pm
Saturday, October 12 - Vendor Faire, Heritage Park, 10:00 am - 3:00 pm
Saturday, October 12 - Trunk or Treat, Community Center Parking Lot, 5:00 pm - 8:00 pm
Monday, October 14 - Senior Movie Matinee, Community Center, 12:30 pm
Wednesday, October 16 - Senior Advisory Committee meeting, Community Center, 10:00 am - 11:15 am
Friday, October 18 - Senior Seminar Series, Community Center, 9:30 am
Monday, October 21 - City Council meeting, City Hall, 5:30 pm
Friday, October 25 - Senior Seminar Series, Community Center, 9:30 am
Friday, October 25 - Dance for Those with Intellectual and Developmental Disabilities, Community Center, 5:00 pm - 8:00 pm
Saturday, October 26 - Classic Car Show & Pumpkin Patch, Heritage Park, 10:00 am - 3:00 pm.
Tuesday, October 29 - Youth & Family Action Committee meeting, City Hall, 5:00 pm
Thursday, October 31 - Old Town La Verne Trick or Treating, Mainiero Square, 2:00 pm
Posting Statement: A true and amended copy of this Agenda was posted on October 1, 2024, on the bulletin board at La Verne City Hall, 3660 D Street, La Verne, and on the City’s website at www.cityoflaverne.org.
Table of Contents
City Council Agenda Packet, Monday, October 7, 2024
Agenda 1
Agenda Items
Presentation(s)
6. Council Minutes of the September 16, 2024, Joint Study Session & Regular meeting 7
7. Registers of Audited Demands 14
8. Cooperative Agreement between City of Pomona & City of La Verne for Fulton Roar 25
9. Award of Contract to MMC Inc. for Booster Pump Upgrade - Zone 3 to Zone 4 33
10. Rejection of Proposals for Video Management Systems 38
11. League of California Cities General Assembly Meeting Voting Delegates 40
12. Public Hearing - Request for Time Extension for Tract Map No. 82001 (500 Baseline Road) 42
13. Contract Award of $3,110,000. to MNR Construction for Plateau Summit Water Pipeline 50
14. Reso - Authorizing the Updating of Admin Regulation 215, Investment Policy 56
COUNCIL REGULAR MEETING AGENDA
Tim Hepburn, Mayor
Wendy Lau, Council Member
Steven Frank Johnson, Mayor Pro Tem
Rick Crosby, Council Member
Meshal "Kash" Kashifalghita, Council Member
Monday, October 7, 2024
Regular Meeting at 6:30 PM
La Verne City Hall - Council Chambers,
3660 D Street, La Verne, CA 91750
In compliance with the American Disabilities Act, any person with a disability who requires a modification or accommodation to participate in a meeting should contact the City Clerk’s Office at (909) 596-8726 at least 48 hours prior to the meeting. Regular Meetings are held on the 1st and 3rd Monday of every month.
Individuals can email their comments to the City Clerk's Office at [email protected] up to noon on the day of the meeting. Those comments will be shared with City Council in advance of the City Council meeting and included as part of the permanent record. Please be advised that public comments submitted by emails or any other format to the City are public records that will be made available for public viewing.
Individuals who wish to share their comments with Council during the meeting may do so in a variety of ways:
• Attend the City Council Meeting in person and fill out a comment card or raise your hand to request to comment on the current agenda item(s).
• Participate via Zoom, by visiting cityoflaverne.org/zoom where you will be automatically redirected to the meeting or call into the meeting via phone 1-669-900-6833 and enter ID 829 0843 5231 when prompted. Public comments via Zoom may be accepted for the agenda items listed within the Consent Calendar, Public Hearing and Other Matters sections of the agenda. Zoom participants who violate decorum protocols will be called to order by the presiding officer and if a violation continues, will be muted by direction of the presiding officer. • Once items are considered by the City Council, no further public comment on that matter will be accepted. A time limit of 3-minutes is set for all public comments.
Council Meeting Decorum: Per the City’s Rules for Decorum, all Speakers and Members of the Audience are to conduct themselves with decorum and not engage in willful conduct which interrupts the meeting or with the orderly conduct of the meeting.
CALL TO ORDER
PLEDGE OF ALLEGIANCE - ADRIAN ROMERO, ARMY SPECIALIST E-4
CITY Of LA VERNE
AGENDA City Council 10/7/2024 Page 2
ROLL CALL Council Member Meshal “Kash” Kashifalghita, Council Member Wendy Lau, Council Member Rick Crosby, Mayor Pro Tem Steven F. Johnson, and Mayor Tim Hepburn.
PRESENTATIONS
Introduction to University of La Verne Interim President Risa Dickson. Risa Dickson, PhD, brings nearly three decades of experience in higher education, and 25 years of higher education administrative experience. Throughout her career, Dr. Dickson has focused on fostering collaborative governance, strategic planning, and academic excellence. Dr. Dickson joined the University as the interim provost in January.
Hispanic Heritage Month Proclamation. Hispanic Heritage Month is celebrated annually from September 15 to October 15 to recognize the contributions and influence of Hispanic Americans on the history, culture, and achievements of the United States.
Fire Prevention Month Proclamation. Every year, October 2024 is recognized as National Fire Prevention month to raise fire safety awareness and help protect homes and families. The La Verne Fire Department works diligently to protect the community against potential wildfires and during this time will provide a few tips residents implement to prevent fires. 2024 Pink Patch Project. The La Verne Police Department will present an overview of the Pink Patch initiative, covering its mission, objectives, and progress in promoting breast cancer awareness and how La Verne Police and other local agencies are participating in this life-saving campaign.
Police Department Promotions. The Police Department has recently promoted several employees to fill existing vacancies after the retirement of employees. These employees include Lieutenant Jay Alvarado, Corporal Alan Weinreb, Corporal Julian Silva, Police Support Services Manager Rebekah Biedermann, Police Services Technician Alyssa Cortez, and Management Analyst Yasmin Potts.
ANNOUNCEMENTS OF UPCOMING COMMUNITY EVENTS
(Any person who wishes to make a brief announcement of a future community event that is open to the public may do so at this time.)
CONSENT CALENDAR
(All items on the Consent Calendar are routine and will be enacted by one motion unless a member of the Council or member of the audience requests separate discussion.)
6. City Council Minutes of the Joint Study Session, Regular Council Meeting & Closed Session of September 16, 2024.
Recomm
endation: That the City Council approve the minutes of the September 16, 2024, meeting
.
7. Register of Audited Demands in the following amounts:
$2,528,414.46 dated 09/11/24
$443,385.88 dated 09/18/24
$3,541,927.88 dated 09/25/24
Recomm
endation: That the City Council approve the Registers of Audited Demands.
AGENDA City Council 10/7/2024 Page 3
8. Cooperative Agreement between the City of Pomona and City of La Verne for Maintenance of Two Traffic Signals on Fulton Road at Arrow Highway and on Fulton Road at Railroad Tracks Approval of the Cooperative Maintenance Agreement between Cities of Pomona and La Verne which outlines each City's responsibility for traffic signal maintenance and future improvements of two shared intersections at Fulton Road and Railroad Tracks and Fulton Road and Arrow Highway.
Recommendation: That the City Council approve the attached "Cooperative Agreement between City of Pomona and City of La Verne for the Maintenance of Two Traffic Signals on Fulton Road at Arrow Highway and at Railroad Tracks" and authorize the City Manager, or designee, to execute any necessary amendments or documents related to the implementation of the Agreement.
9. Award of Contract to MMC Inc, in the amount of $204,000, for Booster Pump Upgrade - Zone 3 to Zone 4 This action awards a construction contract to MMC Incorporated in the amount of $204,000 with funding in the FY 24/25 Approved CIP “Booster Pump Upgrade – Zone 3 to Zone 4” Project WT2403. The purpose of this booster pump project is to improve current pumping infrastructure to provide increased water reliability during the Water - Plateau Summit Pipeline Replacement Project.
Recommendation: That the City Council:
1. Award a public works construction contract to MMC Incorporated, the lowest, most responsible bidder, in the amount of $204,000 for the Booster Pump Upgrade - Zone 3 to Zone 4 (Proj. No. WT2403); and
2. Authorize staff to issue change orders not exceeding 10% of the construction budget for a total possible cost of $224,400.
10. Rejection of Proposals for Video Management Systems The Police Department has an outdated video management system and plans to replace by using federal grant funding. A Request for Proposals (RFP) was issued, resulting in eight submissions. Based on the proposals received, the City has determined a need to narrow down the scope of work, including the specification of equipment type that best meets the existing facilities at the Police Department and federal requirements related to the federal grant funding.
Recommendation: That the City Council reject all submitted proposals for the Video Management Systems RFP.
11. League of California Cities General Assembly Meeting Voting Delegates The League of California Cities requests the selection of one delegate to vote on behalf of the City at the General Assembly Meeting. It is recommended that the City Council designate Mayor Tim Hepburn as the voting delegate and Mayor Pro Tem Steve Johnson as the alternate voting delegate. The selection must be appointed by the City Council.
Recommendation: That the City Council appoint Mayor Tim Hepburn to represent the City of La Verne as the voting delegate for the League of California Cities General Assembly Meeting and Mayor Pro Tem Steve Johnson as the alternate.
PUBLIC HEARINGS
12. Public Hearing Regarding the Request for Time Extension on Vesting Tentative Tract Map
AGENDA City Council 10/7/2024 Page 4
No. 82001 (500 Baseline Road) On September 17, 2024, the City Council set a public hearing for October 7, 2024, to consider a one-year time extension to Vesting Tentative Tract Map (VTTM) No. 82001.
Recommendation: That the City Council adopt a resolution titled "A Resolution of The City Council, City of La Verne, California, Granting a Time Extension to Vesting Tentative Tract (VTTM) Map No. 82001 Pursuant to the Provisions of the TItle 7, Division 2, Chapter 3, of the Government Code of the State of California, establishing the new expiration date of the VTTM No 82001 as November 3, 2025.
OTHER MATTERS
13. Award Construction Contract, in the amount of $3,110,000, to MNR Construction for Plateau Summit Water Pipeline This action will award a construction contract to MNR Construction in the amount of $3,110,000 for the Plateau Summit Water Transmission Pipeline Replacement Project, Proj. No. WT2301. The purpose of the project is to replace approximately 2,000’ of 16” riveted steel transmission mainline that has reached its functional life span.
Recomm
endation: That the City Council:
1. Award a public works constructio
n contract to MNR Construction Incorporated, the
lowest, most responsible bidder, in the amount of $3,110,000 for the Plateau Summit Water Transmission Pipeline Replacement Project (Proj. No. WT2301) and authorize the City Manager to execute the contract; and
2. Authorize staff to issue change orders not exceeding 15% of the construction budget for a total possible construction cost of $3,576,500.
14. Adoption of a Resolution Authorizing the Update to Administrative Regulation 215, Investment Policy and Allow for the Investment of monies into California Class Prime Fund. Adoption of a resolution updating the City's Investment Policy to include the California CLASS Prime Fund, a local government investment pool, as an allowable investment option.
This change aims to diversify the City’s portfolio, optimize interest earnings, and maintain fund safety and liquidity. Approval of this resolution will allow the City to begin investing in the fund, which is already utilized by other government entities, as detailed in the attached report.
Recommendation: That the City Council adopt a Resolution titled, “A RESOLUTION OF THE
CITY COUNCIL OF THE CITY OF LA VERNE, CALIFORNIA, ACKNOWLEDGING RECEIPT AND FILING OF THE CITY’S INVESTMENT POLICY FOR PUBLIC FUNDS AND AUTHORIZING THE INVESTMENT OF MONIES IN THE CALIFORNIA CLASS PRIME FUND.”
PUBLIC COMMENTS
This is the time set aside for anyone wishing to address the City Council on items not listed in any other place on the agenda. Under the provisions of the Brown Act, the legislative body is prohibited from talking or engaging in discussion on any item not appearing on the posted agenda. However, your concerns may be referred to staff or set for discussion later. Please email your public comment to the City Clerk's Office at [email protected]. Your public comment will be shared with the City Council and included as part of the permanent record. There is a 3-minute time limit on public comments.
COUNCIL COMMENTS AND CONFERENCE/MEETING REPORTS
AGENDA City Council 10/7/2024 Page 5
Each Council Member may address the Council and public on matters of general information and/or concern. This is also the time for Council Members to report on conferences and/or meetings they have attended per Assembly Bill 1234.
ADJOURNMENT
Adjournment in Memory of Robert Paul Brannon. Robert was born on April 17, 1956, in Coronado North Island of San Diego County, his parents moved several times before settling in Norwalk, where he graduated from Dominguez High School and immediately joined the U.S. Navy.
He served as a firefighter on the battleship Enterprise during the Vietnam War. After his commitment in the military, he left the service to pursue his college education and subsequently a career in architectural design drafting and computer-aided design drafting, as well as raising a family.
In 2017, he graduated from La Verne CERT training and ascended to a Level 2 which holds the responsibilities of being a part of the activation and deployment team in the event of an emergency. He had an incredible sense of humor which carried him through happy and difficult times in his life. Always the first responder at heart, whether it was a stray dog, an accident on the street, or a person in need he always stepped in to help. He loved the community of La Verne and was happy to live here for almost 10 years.
Robert passed away on August 23, 2024. He is survived by his wife, Hanna, and numerous immediate family members. He will be missed forever.
THE NEXT REGULAR MEETING OF THE LA VERNE CITY COUNCIL IS SCHEDULED FOR MONDAY, OCTOBER 21, 2024, at 5:30 P.M.
AGENDA City Council 10/7/2024 Page 6
RESIDENT INFORMATION
UPCOMING EVENTS AND MEETINGS
Tuesday, October 8 - Active Transportation Committee meeting, City Hall, 5:00 pm - 6:00 pm
Tuesday, October 8 - Ad Hoc Water and Sewer Rate Study Committee meeting, Council Chamber, 6:00 pm - 7:00 pm
Wednesday, October 9 - Planning Commission meeting, Council Chamber, 6:30 pm
Saturday, October 12 - Vendor Faire, Heritage Park, 10:00 am - 3:00 pm
Saturday, October 12 - Trunk or Treat, Community Center Parking Lot, 5:00 pm - 8:00 pm
Monday, October 14 - Senior Movie Matinee, Community Center, 12:30 pm
Wednesday, October 16 - Senior Advisory Committee meeting, Community Center, 10:00 am - 11:15 am
Friday, October 18 - Senior Seminar Series, Community Center, 9:30 am
Monday, October 21 - City Council meeting, City Hall, 5:30 pm
Friday, October 25 - Senior Seminar Series, Community Center, 9:30 am
Friday, October 25 - Dance for Those with Intellectual and Developmental Disabilities, Community Center, 5:00 pm - 8:00 pm
Saturday, October 26 - Classic Car Show & Pumpkin Patch, Heritage Park, 10:00 am - 3:00 pm.
Tuesday, October 29 - Youth & Family Action Committee meeting, City Hall, 5:00 pm
Thursday, October 31 - Old Town La Verne Trick or Treating, Mainiero Square, 2:00 pm
Posting Statement: A true and amended copy of this Agenda was posted on October 1, 2024, on the bulletin board at La Verne City Hall, 3660 D Street, La Verne, and on the City’s website at www.cityoflaverne.org
.
MINUTES OF A JOINT STUDY SESSION, REGULAR
COUNCIL MEETING & CLOSED SESSION
MONDAY, SEPTEMBER 16, 2024
ACTION MINUTES
“see items in italics”
JOINT STUDY SESSION - 5:30 PM – Meeting was called to order at 5:33 PM.
CALL TO ORDER
ROLL CALL Council Member Meshal “Kash” Kashifalghita, Council Member Rick Crosby, Council Member Wendy Lau, Mayor Pro Tem Steven F. Johnson, and Mayor Tim Hepburn.
Council Members present: Crosby, Kashifalghita, Lau, Johnson, and Hepburn.
Absent: None
Advisory Staff Present: City Manager Ken Domer, City Attorney Kimberly Hall Barlow, and Assistant City Manager JR Ranells.
Planning Commissioner Erin Duffy, Planning Commissioner Jeremy Conrad, Planning Commissioner Keny Chang, Vice Chair Thomas Allison, and Chairperson Jason Simison.
Planning Commissioners present: Duffy, Chang, and Allison.
Absent: Simison and Conrad.
STUDY SESSION TOPIC - GENERAL PLAN UPDATE
De Novo Planning Group, the City's General Plan consultant, will provide a presentation on the City's General Plan Update. The presentation will include a summary of the public outreach program, an overview of the proposed General Plan Policy Document including key goals, policies, and actions, a summary of the environmental review process, and direction for how the public can provide comments which are due to City Staff in writing by 5:00 pm on Monday, September 23, 2024.
Amanda Tropiano from the DeNovo Group provided an update on the City’s General Plan.
Council & Planning Commissioner Comments: Council Member Crosby and Planning Commissioner Allison.
Public Comments: Comments were received from Sherry Best and Cynthia Gabaldon.
The City Council recessed at 6:18 PM and will reconvene at 6:30 PM for the regularly scheduled City Council meeting.
Council Agenda Packet - October 7, 2024
CITY Of LA VERNE
Minutes City Council 9/16/2024 Page 2
REGULAR CITY COUNCIL MEETING - 6:30 PM
PLEDGE OF ALLEGIANCE - JOSEPH MAGALLANES, SSG, E-6 ARMY Council presented Joseph wit
h a Pride of La Verne certificate.
ROLL CALL Council Member Meshal “Kash” Kashifalghita, Council Member Rick Crosby, Council Member Wendy Lau, Mayor Pro Tem Steven F. Johnson, and Mayor Tim Hepburn.
Council Members present: Crosby, Kashifalghita, Lau, Johnson, and Hepburn.
Absent: None
Advisory Staff Present: City Manager Ken Domer, City Attorney Kimberly Hall Barlow, and Assistant City Manager JR Ranells.
PRESENTATION - SGVCOG UPDATE
The San Gabriel Valley Council of Governments ( SGVCOG) will provide an overview of their latest programs and milestones and provide a sneak peek at what’s on the horizon for the next year. The presentation will be led by Executive Director Marisa Creter.
Executive Director Creter and Senior Project Manager Beshay, provided Council with an overview of recent programs.
ANNOUNCEMENTS OF UPCOMING COMMUNITY EVENTS
(Any person who wishes to make a brief announcement of a future community event that is open to the public may do so at this time.)
Fire Chief Nigg gave a status update on the Bridge Fire.
Crystal Chumley, Regional Administrator with Los Angeles County Library announced the appointment of Adrian Romero as the new Library Manager.
Adrian Romero then announced upcoming library events.
CONSENT CALENDAR
(All items on the Consent Calendar are routine and will be enacted by one motion unless a member of the Council or member of the audience requests separate discussion.) It was moved by Crosby, and seconded by Lau, and approved by a vote of 5-0.
3. City Council Minutes of the Closed Session and Regular Meeting of September 3, 2024.
Recomm
endation: That the City Council approve the minutes of the September 3, 2024 meeting
. Approved
4. Register of Audited Demands in the following amounts:
Fiscal Year 2023-2024
$172,375.94 dated 08/28/24
Council Agenda Packet - October 7, 2024
Minutes City Council 9/16/2024 Page 3
Fiscal Year 2024-2025
$2,537,496.65 dated 08/28/24
$180,308.14 dated 09/04/24
Recommendation: That the City Council approve the Registers of Audited Demands. Approved
5. Professional Services Agreement with LSA Associates, INC. for the Hillcrest Gateway Project CEQA The City proposes to utilize the services of LSA Associates as an independent contractor for CEQA services related to the Hillcrest Gateway Project.
Recomm
endation: That the City Council approve the Professional Service Agreement with LSA Associates, Inc. to perform CEQA
services related to the Hillcrest Gateway Project. Approved
6. Lease Agreement for Warehouse Pizza Patio Since 1994, Warehouse Pizza, located at 2340 D Street, has leased the area of the restaurant's outdoor patio from the City. The most recent 10- year lease agreement expired on July 1, 2024. As the City is currently reviewing our policy on leasing space in Old Town La Verne, staff has prepared a one-year agreement until further direction from the City Council is provided later this year.
Recommendation: That the City Council approve a one-year lease agreement with Warehouse Pizza for the continued use of the outdoor patio. Approved
7. Appropriation for Evaluation and Action Plan for the Old Town La Verne Business Improvement District The City released a Request For Proposals (RFP) to firms to evaluate the Old Town La Verne Business Improvement District (District) and make recommendations on how to improve and help to grow the District. A joint proposal from Community Strong Strategies and Civitas has been identified as the one with the most experience in this field and was the most cost-effective. The District's Advisory Board has recommended that the City and the District share the cost of the analysis.
Recomm
endation: That the City Council approve a resolution titled, "RESOLUTION OF THE
CITY COUNCIL OF
THE CITY OF LA VERNE, CALIFORNIA, AMENDING THE FISCAL YEAR 2024-25 ADOPTED BUDGET IN THE AMOUNT OF $30,700 WITHIN THE OLD TOWN LA
VERNE BUSINESS IMPROVEMENT DISTRICT FOR THE EVALUATION AND ACTION PLAN OF THE DISTRICT." Approved
8. Resolution Authorizing Ability to File Grant Applications for Measure A Funding for Projects and Programs This item seeks consideration of a resolution approving the blanket authority for Staff to file applications for grant funds from the Los Angeles County Regional Park and Open Space District for Measure A Funding of Projects and Programs.
Recomm
endation: That the City Council adopt a Resolution titled, "RESOLUTION OF THE
CITY COUNCIL OF
THE CITY OF LA VERNE, CALIFORNIA, APPROVING THE BLANKET
AUTHORITY TO FILE APPLICATIONS FOR GRANTS COUNTY REGIONAL PARK AND OPEN SPACE DISTRICT FOR MEASURE A FUNDING FOR PROJECTS AND PROGRAMS." Approved
9. Conflict of Interest Code Resolution Every two years, the City of La Verne is required to review its Conflict of Interest Code to determine if any changes are necessary. Staff consulted with the City Attorney and Department Directors to determine necessary amendments to the list of designated filers and this item makes those changes.
Recommendation: That the City Council adopt a Resolution titled, "A RESOLUTION OF THE CITY
COUNCIL OF THE CITY OF LA VERNE, CALIFORNIA, ADOPTING A STANDARDIZED CONFLICT OF INTEREST CODE FOR DESIGNATED EMPLOYEES OF THE CITY OF LA VERNE." Approved
Council Agenda Packet - October 7, 2024
Minutes City Council 9/16/2024 Page 4
10. Resetting the Time and Date for Public Hearing Regarding the Request for Time Extension on Vesting Tentative Tract Map No. 82001 (500 Baseline Road) Resetting the Time and Date for Public Hearing Regarding Consideration of Time Extension to VTTM No. 82001
Recommendation: That the City Council set the public hearing for consideration of the requested extension for Vesting Tentative Tract Map No. 82001 to occur at 6:30 PM on October 7, 2024. Approved
OTHER MATTERS
11. Resolution Approving a Class Specification and Salary for Police Captain With the recent retirement of the City’s Police Captain, a compensation and job analysis has been completed resulting in a recommendation to update both the salary and job classification for the position. Additionally, the Police Captain classification is being moved into the La Verne Police Middle Management Association to be in line with similarly classed employees and area departments.
Recomm
endation: That the City Council adopt the attached Resolution titled, “A RESOLUTION OF
THE CITY COUNCIL OF THE CITY OF LA VERNE, CALIFORNIA, APPROVING A CLASS SPECIFICATION AND SALARY FOR POLICE CAPTAIN.”
HR Analyst Rodriguez reported on this item.
Public Comments: None
Council Comments: None
It was moved by Kashifalghita, seconded by Johnson, and approved by a vote of 5-0.
12. Modification of the City's Purchasing Policy for Federal Procurement Standards and Public Projects The City Council is being asked to consider updates to the purchasing policy to align approval thresholds with federal procurement standards under the Code of Federal Regulation (CFR) 200, affecting all federally funded purchases and to align Public Project approval thresholds with the California Uniform Public Construction Cost Accounting Act. These changes aim to streamline processes while maintaining City Council budget controls.
Recommendation: That the City Council approve the proposed modifications to the City's purchasing policy aligning approval thresholds for federally funded purchases with the Code of Federal Regulations (CFR) 200 and Public Project approval thresholds with the California Uniform Public Construction Cost Accounting Act.
Finance Director Lopez reported on this item.
Public Comments: Eli Tirado made comments.
Council Comments: Council Member Crosby commented on the large amounts, that they have already been approved, and appropriations are in place.
It was moved by Kashifalghita, seconded by Lau, and approved by a vote of 5-0.
Council Agenda Packet - October 7, 2024
Minutes City Council 9/16/2024 Page 5
13. Purchase Agreement for Property Located at 1816 First Street and 1822 First Street Utilizing Affordable Housing Funds The City is proposing to purchase two properties with affordable housing funds located at 1816 and 1822 First Street. The property had been the subject of the code enforcement process and receivership. This action will purchase the property for eventual development and improvement to the surrounding neighborhood.
Recommendation: That the City Council approved the purchase agreement for the properties at 1816 and 1822 First Street, authorize the City Manager to execute applicable documents, and approve a Resolution appropriating $440,000 from the Affordable Housing Fund (Fund 226).
City Manager Domer reported on this item.
Public Comments: None
Council Comments: Mayor Pro Tem Johnson ask for clarification on who the funds for the purchase will go to, and Council Member Crosby received comments from residents thanking the City for making that area safer, they are looking forward to the planned improvements.
Mayor Hepburn echoes the comments, this property was an issue and thanked the Police Department and Attorney Amanda Pope was exceptional in assisting with this process.
It was moved by Johnson, seconded by Lau, and approved by a vote of 5-0.
14. Resolution Ratifying Proclamation No. 24-XX Declaring the Existence of a Local Emergency On September 11, 2024, the City Manager issued proclamation for a local emergency based on the existence of conditions of disaster or extreme peril caused by the "Bridges" wildfire. Per La Verne Municipal Code Section 2.56.050 A.1., the City Council shall take action to ratify the proclamation within seven days thereafter or the proclamation shall have no further force or effect.
Recommendation: That the City Council adopt a Resolution entitled, "A RESOLUTION OF THE
CITY COUNCIL OF THE CITY OF LA VERNE, CALIFORNIA, RATIFYING PROCLAMATION NO. 24-01 DECLARING THE EXISTENCE OF A LOCAL EMERGENCY." City Manager Domer reported on this item.
Public Comments: None
Council Comments: Council Member Crosby asked for clarification on the seven day requirement, and thanked City Manager Domer and Fire Chief Nigg for all the efforts to help recoup some of the funds. Mayor Hepburn agreed and stated recouping fund is extremely important.
It was moved by Lau, seconded by Kashifalghita, and approved by a vote of 5-0.
PUBLIC COMMENTS
This is the time set aside for anyone wishing to address the City Council on items not listed in any other place on the agenda. Under the provisions of the Brown Act, the legislative body is prohibited from talking or engaging in discussion on any item not appearing on the posted agenda. However, your concerns may be referred to staff or set for discussion later. Please email your public comment to the City Clerk's Office at [email protected]. Your public comment will be shared with the City Council and included as part of the permanent record. There is a 3-minute time limit on public
Council Agenda Packet - October 7, 2024
Minutes City Council 9/16/2024 Page 6
comments.
Public Comments: Judith Tenenbaum from the League of Women Voters, Mount Baldy Area, and Carol Lee Marshall as the Observer for the La Verne City Council. Eli Tirado, Candidate for Bonita Unified School District. Doctor Mark Arvidson running for Area Five School Board Area, and Resident Miss Tyner.
COUNCIL COMMENTS AND CONFERENCE/MEETING REPORTS
Each Council Member may add
ress the Council and public on matters of general information and/or concern. This is also the time for Council Members to report on conferences and/or meetings they have attended per Assembly Bill 1234.
Council Comments: Council Member Lau thanked Fire Chief Nigg, Police Chief Gonzalez and City Manager Domer for the regular updates on everything and the social media posts to help assuage the concerns of citizens. October is Hispanic Heritage Month, it’s a great month to remember some of the roots of our city. National Voter Registration Day is tomorrow, September 17th, information will be available thru the League of Women Voters and on the campus at ULV at designated booths.
ULV will be a voting center, opening four days before the election. On a sad note a senior at Los Osos unfortunately committed suicide, such a heartbreaking loss for all who knew her.
Mayor Pro Tem Johnson appreciated the updates and texts on everything going on here with the different fires as he was out of town last week on a planned trip, our departments are amazing both Fire and Police.
Council Member Crosby announced that on September 28th Senator Rubio is doing the San Gabriel Valley Girls Summit at the Dougherty Performing Arts Center. Congratulated New Library Manager Adrian, also thanked everyone for the Study Session today, and encouraged the public to make comments in writing. The Autism Spectrum Athletics opening day will be October 6th at 2:00 PM for soccer and 3:00 PM for flag football. Due to family commitments, will miss the next two council meetings, and on October 9th thru 12th will be attending the JPIA Risk Management Conference.
Council Member Kashifalghita thanked our first responders and our City staff working diligently to keep everybody safe and getting the message out there, thank you Mayor for giving out information to everybody. Special shout out to honor our Hispanic Heritage Month and if you have a need for some mosquito fish the Vector Control Board would love to share those with anyone that has a pond, and lastly Happy Birthday to Mayor Pro Tem Johnson.
Mayor Hepburn appreciates the kudos on the Minute with the Mayor videos as we strived to keep everyone informed. We have a very collaborative council, great city management, great directors and Chiefs, thank you all for the tremendous job protection our City. Stay prepared, and diligent.
Thank you to all the resident for the support.
The Mayor recessed the meeting to closed session. City Attorney Hall-Barlow read the closed session items into the record. There will be no report out after closed session.
CLOSED SESSION - EXISTING LITIGATION
Conference with Legal Counsel - Existing Litigation pursuant to California Government Code Section 54956.9(d)(1). (3 cases)
Council Agenda Packet - October 7, 2024
Minutes City Council 9/16/2024 Page 7
• California Rifle & Pistol Association, Incorporated, et al., v. Los Angeles County Sheriff's Department, et al., Case No. 2:23-cv-10169-SPG-ADS,
• SCE v. California State Board of Equalization, et al. Orange County Superior Court Case No. 30-2024-01403215-CU-MC-CXC, and
• SCE v. California State Board of Equalization, et al. Orange County Superior Court Case No. 30-2023-01328239-CU-MC-CXC.
• City of Whittier, et al. vs. Los Angeles Superior Court, et al., Los Angeles County Superior Court Case No. 23STCP03579.
ADJOURNMENT – at 8:29 p.m.
Respectfully submitted,
Debra Fritz, CMC
Deputy City Clerk
Council Agenda Packet - October 7, 2024
Council Agenda Packet - October 7, 2024
CITY OF LA VERNE
REGISTER OF AUDITED DEMANDS
9/1112024
FY 2024--2025
DEMANDS PRESENTED HA VE BEEN APPROVED CONSISTENT WITH TI£E CITY'S PURCHASING/FUNDING POLICY AND HA VE BEEN REVIEWED BY TI£E DIRECTOR FOR ACCURACY
AND PROPER AP PROV AL,
SUMMARY OF DEMANDS
LARGEST 10 CITY DEMAND PAYMENTS OTHER THAN PAYROLL AND RELATED BENEFITS.
AMOUNT
I. 308,067.99
2. 283,844.77
3. 141,184 73
4. 93,151.16
5. 35,000.00
6. 18,294.68
7. 17,525.11
8, 16.334.79
9. 9,361.60
10. 8,280.00
120,626.29
$ 1,051,671.12
ISSUED TO
GRBCON, INC.
WASTE MANAGEMENT
STRATEGIC COmRACTCNG SERVICES
ACE CAPITAL ENGINEERING
BRIGHIVIEW LANDSCAPE SERVICES, CNC.
SALT WORKS, INC.
JONES MAYER
INTER-CON SECURITY SYSTEMS, INC
ECONOLITE SYSTEMS, INC.
FRIENDS OF THE FOURTII OF JULY
OTHER DEMANDS
DESCRIPTION
LAS FLORES PARK MODULAR RESTROOMS PROJECT BILLING THRU 7/31/2024 AUGUST 2024 REFUSE SERVICE
PAYROLL PERIOD 08/04124 - 08/1712024 CONTRACT /SUPPORT STAFF (L.A. CLEAR) CDBG CITY HALL ACCESS IMPROVEMENT WORK THRU 8/12/2024
BRUSH CLEARENCE/WEED ABATEMENT PARTIAL BILL
PURCHASES - MOR TON ALB MED
LEGAL SERVICES JULY 2024 AND SEPTEMBER 2024 RETAINER FEE AUGUST 2024 PARKING ENFORCEMENT
JULY-AUGUST 2024 MAINT & AUG'14 ROLLING REPORT AND OTHER SERVICES 4TH OF JULY 2024 FIREWORK TICKET SALES
DEMANDS OF S 19, I! 1.09 WERE PAID ON BEHALF OF UJMP ACT FOR LAW ENFORCEMENT TASK FORCE OPERATIONS.
DEMANDS OF Sl.457,632.25 WERE PAID FOR PAYROLL AND EMPLOYEE BENEITT RELATED ITEMS.
IN ACCORDANCE WITH GOVERNMENT CODE SECTION 37202, I HEREBY CERTIFY THAT THIS IS A TRUE AND ACCURATE REGIS'ffiR. OF AUDITED DEMANDS.
CHRISTY LOPEZ
FINANCE DIRECTOR
Council Agenda Packet - October 7, 2024
CITY OF LA VERNE FY 2024-2025
REGISTER OF AUDITED DEMANDS - EXHIBIT A 9/ 11/2024
CHECK NO. AMOUNT ISSUED TO
170576 1,895.20 ACP PUBLICATIONS & MARKETING
170577 140.00 AL THEA BENNETT
170578 120.00 ARIELA KASPI-KANETI
170579 1,247.44 AT&T MOBILITY
170580 856.95 ATHENS SERVICES
170581 165.38 BLOOMING VIEW
170582 35,000.00 BRIGHTVIEW LANDSCAPE SERVICES, INC.
170583 638.41 BROWN MOTOR WORKS
170584 225.00 CALIFORNIA PEST MANAGEMENT,INC.
170585 938.96 CHARTER COMMUNICATIONS
170586 120.00 CHRISTINA PAR.KER
170587 275.00 CHRISTOPHER R. A BERNA THY
170588 390.00 RETIRED SENIOR VOLUNTEER PATROL
170589 26.35 COLLEY FORD
170590 165.00 CPRS
170591 1,774.18 DANIELS TIRE SERVICE
170592 330.00 DESTREE MARTINEZ
170593 107.00 DIRECTV
170594 9,361.60 ECONOLlTE SYSTEMS, INC.
170595 120.00 ELIZABETH MORGAN
170596 826.00 EMPLOY AMERICA
170597 358.67 FACTORY MOTOR PARTS
170599 416.00 FRESHMOBILECA LLC
170600 3,646.17 FRONTIER COMMUNICATIONS
170601 63.51 GLENDORA DODGE JEEP
170602 100.00 HAROLD GREENLEAF
170603 3,091.53 HOLLIDAY ROCK CO.
170604 1,406.29 HOME DEPOT CREDIT SERVICES
170605 7,672.40 IMS REFRIGERATION, INC.
170606 4,312.00 INDUCTIVE AUTOMATION
170607 2,390.27 INLAND EMPIRE STAGES, LTD.
170608 29.25 JAYRAKTHET
170609 96.00 KIMBERLY ERICKSON
170610 14.00 KYOCERA DOCUMENT SOLUTIONS WEST
170611 3,000.00 LEEPER, CORY
170612 501.66 LESLIE'S POOLMART, INC.
170613 7,956.75 LEXIS NEXIS RISK SOLUTIONS
170614 4,619.83 LIFE-ASSIST
170615 819.00 LOS ANGELES COUNTY FIRE DEPT.
170616 7,106.06 LOS ANGELES COUNTY PUBLIC WORKS
170617 980.00 MAIN STREET TOURS
170618 191.85 MALLORY SAFETY AND SUPPLY LLC
170619 45.00 MARIA CAMARENA
170620 1,238.40 MORROW MEADOWS CORP
170621 593.57 PARK.HOUSE TIRE, INC.
170622 72.00 PORACLDF
170623 100.00 RA YMA SALINAS
170624 58.20 REGIONAL TAP SERVICE CENTER
170625 4,407.43 RINGCENTRAL INC.
170626 852. 12 SALAS, GABRIEL
170627 30.48 SANDERS LOCK & KEY
170628 80.00 SGVCMA
170629 875. 16 SNAP-ON INDUSTRIAL
170630 565.67 SOUTHEAST CONSTRUCTION PRODUCTS INC
170631 2,079.00 SOUTHERN CALIF. REG. RAIL AUTH.
170632 28.27 SOUTHERN CALIFORNIA EDISON
170633 553.96 STAPLES
170634 581.95 T-MOBILE
Council Agenda Packet - October 7, 2024
CITY OF LA VERNE FY 2024-2025
REGISTER OF AUDITED DEMANDS - EXHIBIT A
CHECK NO.
170635
170636
170637
170638
170639
170640
170641
170642
170643
170644
170645
170646
170647
170648
170649
EFT
EFT
EFT
EFT
EFT
EFT
EFT
EFT
EFT
EFT
EFT
EFT
EFT
EFT
EFT
EFT
EFT
EFT
EFT
EFT
EFT
EFT
EFT
EFT
EFT
EFT
EFT
BANKDRAWN
Total Demands
AMOUNT
1,200.00
2,412.44
347.00
4,048.22
137. 10
88.53 763.59
250.00
562.31
400.00
2,558.26
1,829.15
26.44 699.00
31.39 93,151.16
779.47
352.80
4,924.00
5,398.86
5,849.95
1,992.54
112.41
7,383.00
8,280.00
297.58
308,067.99
1,480.56
1,093.27
16,334.79
421.63
17,525.11
652.56
46.92 112.00
18,294.68
101.75
759.49
140.00
283,844.77
93.69 141,184.73
1,987.06
1,051,671.12
1,457,632.25
19,111.09
2,528,414.46
ISSUED TO
THE COUNSELING TEAM INTERNATIONAL
TPX COMMUNICATIONS
TRANSUNTON RISK & AL TERNA TlVE DAT A
UNITED SITE SERVICES OF CA, INC.
VALDEZ, FRANCISCO
VERIZON WIRELESS
W AXIE SA NIT ARY SUPPLY
WENDY VELASQUEZ
WHITE CAP, L.P.
CARL TON WILLIAMS III
WM CORPORATE SERVICES, INC.
ZOLL MEDICAL CORPORATION
FEDEX
TOWERSTREAM CORPORATION
EUGENE WONG
ACE CAPITAL ENGINEERING
ALL STATE POLICE EQUIPMENT CO.
AMERICAL GRAPHIC SYSTEMS, INC.
BABCOCK LABO RA TORIES, INC.
BRENNTAG PACIFIC, INC.
CALIFORNIA JPIA- EXCESS LIABILITY
COMMERCIAL DOOR COMPANY, INC.
DIOSDADO, MARGARITA
ENVIRONMENT AL CONTROL PUENTE HILLS
FRIENDS OF THE FOURTH OF JULY
GRAINGER
GRBCON, INC.
HASA, INC.
HI-WAY SAFETY INC.
INTER-CON SECURITY SYSTEMS, INC.
INTERSTATE BATTERY INLAND VALLEY
JONES MAYER
MCCALL'S METER, INC.
POMONA TRUCK & AUTO SUPPLY
RADC,INC.
SALT WORKS, INC.
SAFFER, CINDY
SILVA, JULLIAN
THREE VALLEYS MUNICIPAL WATER DIST
WASTE MANAGEMENT
AMAZON CAPITAL SRVC - LA CLEAR
STRATEGIC CONTRACTING SERVICES
CINTAS
Total Payroll and Employee Benefit Payments
Total LAIMPACT Demands
9/11/2024
Council Agenda Packet - October 7, 2024
CITY OF LA VERNE FY 2024-2025
REGISTER OF AUDITED DEMANDS - EXHIBIT A
CHECK NO. AMOUNT ISSUED TO
Payroll and Employee Benefit Payments:
170658 908.33 AFLAC
170659 2,944.28 DELTA DENTAL INSURANCE COMPANY
170660 13,690.05 DELTA DENTAL(0020785555)
170661 660.00 CITY OF LA VERNE EMPLOYEE FUND
170662 300.00 FIDELITY INVESTMENTS #P0754
170663 8,938.92 THE HARTFORD-PRIORITY ACCOUNTS
170664 157,793.88 HEALTH NET
170665 104,019.96 KAISER FOUND A TlON HEAL TH PLAN
170666 1,768.42 METLIFE - GROUP BENEFITS
170667 409.40 A.C. NEWMAN CO.
170668 155.71 REA THER REYES
170669 4.00 UNlTED WAY CAMPAIGN
BANK DRAFT 168,088.61 UNITED STATES TREASURY
BANK DRAFT 587.46 ST ATE DISBURSEMENT BD0005689
BANK DRAFT 247,355.90 STATE OF CALIFORNIA
BANK DRAFT 25,898.02 EMPOWER TRUST COMPANY, LLC-457
BANK DRAFT 6,756.61 EMPOWER TRUST COMPANY, LLC-ROTH
BANK DRAFT 704,972.21 PAYROLL
EFT 7,043.19 CHARLES SCHWAB BANK
EFT 100.00 WAGEWORKS-ADMIN FEE
EFT 3,087.75 LA VERNE FIRE ASSOCIATION
EFT 2,149.55 LA VERNE POLICE OFFICERS ASSOC.
Total 1,457,632.25
Break down of standard providers and the benefits they provide Provider Benefits Description
A.C. Newman Co.
Delta Dental
The Hartford
Health Net
Kaiser
Wage Works
US Treasurey
State of California
Mass Mutual A
Mass Mutual B
Mass Mutual Roth
Lincoln National
Fire/Police/La Verne Employee Fund
LAIMPACT Law Enforcement Task Force Demands
170650 8,874.00
170651 36.58
170653 501.83
170654 382.34
170655 65.69
170656 283.00
170657 8,967.65
MULTIPLE
Total 19,111.09
Accidental Death Life Insurance
Employee dental insurance coverage
Life Insurance Policy
Employee health insurance
Employee health insurance
Flexible Savings Account (FSA) deductions
Employee federal tax withholdings
Employee state income tax. unemployment insurance and child support/garnishments 401A plan
4578 plan
Roth plan
Replacement Social Security plan
Employee Group Dues
CITY OF PASADENA
FEDERAL EXPRESS CORPORATION
ROTORCRAFT SUPPORT, fNC.
ROTORCRAFT SUPPORT, fNC.
ROTORCRAFT SUPPORT, fNC.
TRANSUNION RISK & ALTERNATIVE DA TA
VITAL RECORDS CONTROL
LAI ENFORCEMENT OPERATIONS
9/11/2024
LAIMPACT demands are paid from federal asset forfeiture dollars allocated to LAIMPACT crime prevention activities. These funds are not City funds and are not available for City use outside of LAIMPACT activities.
Council Agenda Packet - October 7, 2024
CITY OF LA VERNE
REGISTER OF AUDITED DEMANDS
9/18/2024
FY 24-25
DEMANDS PRESENTED HAVE BEEN APPROVED CONSISTENT WITH THE CITY'S PURCHASING/FUNDING POLICY AND HAVE BEEN REVIE\VED BY THE DIRECTOR FOR ACCURACY AND PROPER APPROVAL.
SUMMARY OF DEMANDS
LARGEST IO CITY DEMAND PAYMENTS OTHER THAN PAYROLL AND RELATED BENEITTS.
AMOUNT
1. 167,015.97
2. 76,111.73
3. 25,706.52
4. 21,810.81
5. 15,647.25
6. 11.427.42
7. 11,176.07
S. 10,904.00
9. 9.570.00
10. 7,402.97
77.684.55
s 434,457.29
ISSUED TO
LOS ANGELES COUNTY FIRE DEPARTMENT
MOTOROLA SOLUTIONS. INC.
A THENS SERVJCES
PRO FORCE LAW ENFORCEMENT
INLAND VALLEY HUMANE SOCIETY
DELCO SERVJCE. INC
GREENSCAPE MAINTENANCE SER VTCES INC.
Q PRESS
LlNX AUTOMATION
STRATEGIC CONTRACTING SERVICES
OTiiER DEMANDS
DESCRIPTION
DISPATCH SERVJCES PER ANNUAL AGREEMENT V,,'JTH LA COUNTY 7101/2024-6/30/2025 MOTOROLA RAD1OS AND ASSOCIATED PROGRAMMING
AUGUST AND SEPTEMBER 2024 SWEEPER SERVICES
PATROL RIFLES IMUZZLE DEVJCES
AUGUST 2024 ANIMAL CARE AND CONTROL SERVJCES
SERVTCEAND REPAIRS AT WILIAMS WELL
SEPTEMBER 2024 MAINTENANCE AND REPAIRS-TRIMMING SERVICES FALL 2024 RECREATION BROCHURES
SCADA MAINTENANCE 6/17/2024 • 0811512024
CREDIT CARD PURCHASES 08101/2024-09/03/2024 (L.A. CLEAR) DEMANDS OF $8,92859 WERE PAID ON BEHALF OF LAlMPACT FOR LAW ENFORCEMENT TASK FORCE OPERATIONS.
IN ACCORDANCE WITH GOVERNMENT CODE SECTION 37202. I HEREBY CERTIFY THAT nns IS A TRUE AND ACCURATE REGISTER OF AUDITED DEMANDS.
FINANCE DTRECTOR
Page I of3
Council Agenda Packet - October 7, 2024
CITY OF LA VERNE FY 24-25
REGISTER OF AUDITED DEMANDS - EXHIBIT A 9/18/2024
CHECK NO. AMOUNT ISSUED TO
170670 $ 160.00 AARP
170671 531.08 ACT NOW SIGNS
170672 94.00 ALFREDO AGUILAR
170673 255.00 ALL PURPOSE DOCUMENT DESTRUCTION
170674 163.00 AMJADAWWAD
170675 1,985.04 AREA D CIVIL DEFENSE/DISASTER MGMT.
170676 1,387.84 ATHENS INSURANCE SERVICE, INC.
170677 25,706.52 ATHENS SERVICES
170678 94.00 BRANDHNESTOR
170679 103.00 BREEZEFIELD INVESTMENT
170680 160.00 BROWN, JENNIFER
170681 45.01 C & E LUMBER COMPANY
170682 375.00 CALIFORNIA PEST MANAGEMENT,INC.
170683 100.00 CHURCH OF LATTER DAY SAINTS
170684 700.00 CLAUDIA SANTELLAN
170685 2,100.00 THECOLORFULSONGSOFBROADWAY
170686 2,255.20 COUNTY OF LOS ANGELES
170687 253.59 CPAC,INC.
170688 335.00 CPRS
170689 I 1,427.42 DELCO SERVICE, INC
170690 94.00 DIANA GARCIA
170691 131.66 EVERSOFT
170692 1,205.34 FIRST-CITIZENS BANK & TRUST CO
170693 221.40 FRONTIER COMMUNICATIONS
170694 1,207.60 GOLDEN STATE WATER COMPANY
170695 165.00 HEDRICK FIRE PROTECTION
170696 313.21 HINDERLITER, DE LLAMAS & ASSOCIATES
170697 2,155.49 HOLLIDAY ROCK CO.
170698 68.50 HOMEVIEW DESIGN, INC.
170699 4,894.51 HOT V1IRE ELECTRIC
170700 357.73 IMS REFRIGERATION, INC.
170701 1,906.13 INLAND EMPIRE STAGES, LTD.
170702 15,647.25 INLAND VALLEY HUMANE SOCIETY
170703 110.00 JANEY KOHLER
170704 898.22 KYOCERA DOCUMENT SOLUTIONS WEST LLC
170705 262.58 LESLIE'S POOLMART, INC.
170706 1,536.53 LINCOLN AQUA TICS
170707 9,570.00 LINX AUTOMATION
170708 167,015.97 LOS ANGELES COUNTY FIRE DEPARTMENT
170709 57.00 MICHAEL G GIESER SR.
1707!0 76,111.73 MOTOROLA SOLUTIONS, INC.
17071 I 475.00 MUSCO SPORTS LIGHTING, LLC.
170712 90.00 OLIVIA NAJAR
170713 1,275.04 PRISTINE UNIFORMS
170714 21,8!0.81 PRO FORCE LAW ENFORCEMENT
170715 10,904.00 Q PRESS
170716 57.00 SABRINA K. MUNOZ
170717 45.00 SAFESHRED COMPANY, INC.
170718 621.82 SAM'S CLUB/SYNCHRONY BANK
170719 279.94 CONNECT A SATELLITE SOLUTIONS LLC
170720 29.20 SO CAL GAS CO
170721 96.30 SOUTHERN CALIFORNIA EDISON
170722 2,434.25 SOUTHERN CALIFORNIA NEWS GROUP
170723 410.00 SOUTHLAND MECHANICAL, INC.
170724 4,641.60 SUPERIOR COURT OF CA,COUNTY OF L.A.
170725 1,500.26 SUPPLY SOLUTIONS
Council Agenda Packet - October 7, 2024
CITY OF LA VERNE FY 24-25
REGISTER OF AUDITED DEMANDS - EXHIBIT A 9/18/2024
CHECK NO. AMOUNT ISSUED TO
170726 4,642.40 TENNIS ANYONE INC.
170727 94.00 VALERIE HOWELL
170728 2,913.75 WAGEWORKS, INC.
170729 1,581.51 ZOLL MEDICAL CORPORATION
170730 3,164.20 CELL BUSINESS EQUIPMENT
170731 349.99 CHARTER COMMUNICATIONS
170732 3,153.14 CHARTER COMMUNICATIONS
170733 126.00 CHRISTOPHER PAUL PERNEVI
EFT 498.33 ALL STATE POLICE EQUIPMENT CO.
EFT 1,300.00 ARAGON, RICHARD
EFT 135.00 BEE REMOVERS
EFT 44.00 GONZALEZ, SAM
EFT 108.97 GRAINGER
EFT l 1,176.07 GREENSCAPE MAINTENANCE SERVICES INC.
EFT 3,040.03 HASA, INC.
EFT 170.00 LIEBERT CASSIDY WHITMORE
EFT 6,130.66 SALT WORKS, INC.
EFT 4,067.11 WESTERN WATER WORKS
EFT 7,221.49 WITTMAN ENTERPRISES, LLC
EFT 306.90 CORDRAY ENTERPRISES LLC
EFT 7,402.97 STRATEGIC CONTRACTING SERVICES
434,457.29
8,928.59 Total LAIMPACT Demands
Total Demand $ 443,385.88
LAIMPACT Law Enforcement Task Force Demands
170734 761.49 CBE LOS ANGELES
170735 1,099.00 CHARTER COMMUNICATIONS
I 70736 2,450.00 CODE 5 GROUP, LLC.
170737 115.00 T-MOBILE
170738 4,503.10 VERIZON WIRELESS
MULTIPLE _____ LAI ENFORCEMENT OPERATIONS
Total $ 8,928.59
LAIMPACT demands are paid from federal asset forfeiture dollars allocated to LAIMPACT crime prevention activities. These funds are not City funds and are not available for City use outside ofLAIMPACT activities.
Council Agenda Packet - October 7, 2024
CITY OF LA VERNE
REGISTER OF AUDITED DEMANDS
9125/2024
FY 2024-2025
DEMANDS PRESENTED HA VE BEEN APPROVED CONSISTENT WITH THE CITY'S PURCHASING/FUNDING POLICY AND HA YE BEEN REVIEWED BY THE DIRECTOR FOR ACCURACY AND PROPER AP PROV AL.
SUMMARY OF DEMANDS
LARGEST !0 CITY DEMAND PAYMENTS OTIIBR THAN PAYROLL A,,'[) RELATED BENEms.
AMOUNT
I. 674553,25
2, 535,398.00
3. 283,844.77
4. !63,000.00
5. 140,021.74
6. 56,081.52
7, 49,029.06
8. 23,669.31
9. 23.300.76
10. 16,852.33
176.194.59
s 2.141.945,33
TSSUEDTO
THREE VALLEYS MUNJCIPAL WATER DIST.
METRO GOLD LINE
WASTE MANAGEMENT
GLADIATOR FORENSICS LLC
STRATEGIC CONTRATING SERVICES
WEST COAST ARBOR!STS. INC.
WOODLAND'S GENERAL CONTRACTING LLC
PRECISION CONCRETE CUTTING
GREENSCAPE MAINTENANCE SER VICES INC
ROGER BASS
OTHER DEMANDS
DESCRIPTION
AUGUST 2024 WATER SALES
STORM DRAIN AND SANITARY SEWER BETTERMENT -WHITE ST/A & E STREETS SEPTEMBER 2024 SERVICES
SERVER EQUIPMENT AND INTALLATION (L.A. CLEAR)
PAYROLL PERIOD 09/01/24 - 09/14/2024 CONTRACT /SUPPORT STAFF (L.A. CLEAR)
TREE MAINTENANCE
CDBG RAMP IMPROVEMENTS
SIDE WALK REP AIR AT CITY OF LA VERNE - VARIOUS LOCATIONS SEPTEMBER 2024 MAINTENANCE SERVICE
SEPTEMBER 2024 CONSULTING SERVICE (L.A. CLEAR)
DEMANDS OF $6,317.18 WERE PAID ON BEHALF OF LAIMPACT FOR LAW ENFORCEMENT TASK FORCE OPERATIONS.
DEMANDS OF Sl.393.605.37 WERE PAID FORPAYROU AND EMPLOYEE BENEFIT RELATED ITEMS.
IN ACCORDANCE WITH GOVERNMENT CODE SECTION 37202. I HEREBY CERTIFY THAT nns IS A TRUE AND ACCURATE REGISTER OF AUDITED DEMANDS.
FINAi.'-ICE DIRECTOR
Page I of4
Council Agenda Packet - October 7, 2024
CITY OF LA VERNE FY 2024-2025
REGISTER OF AUDITED DEMANDS - EXHIBIT A 9/25/2024
CHECK NO . AMOUNT ISSUED TO
170739 1,463.70 A TKINSON,ANDELSON,LOY A,RUUD & ROMO
170740 68.50 BADGER CONTROLS CO.
170741 50.00 CAPE ACCOUNTING
170742 1,468.13 CITY OF CLAREMONT
170743 100.00 COLANTUONO, HIGHSMITH & WHATLEY, PC
170744 450.82 COLLEY FORD
170745 173.00 CONNIE PENA
170746 1,757.82 CPAC,INC.
170747 710.77 DARTCO TRANSMISSION SALES & SERVICE
170748 1,250.00 DOUGLAS ENVIRONMENTAL GROUP, INC.
170749 7,880.00 ENOISE CONTROL INC.
170750 613.46 EWING IRRIGATION PRODUCTS
170752 781.68 FACTORY MOTOR PARTS
170753 181.80 FIRE APPARATUS SOLUTIONS
170754 364.00 FRESHMOBILECA LLC
170755 290.00 FRONTIER COMMUNICATIONS
170756 1,438.85 GREEN PRO SOLUTIONS
170757 149.90 HERNANDEZ.RALPH
170758 585.l 7 HIRSCH PIPE AND SUPPLY
170759 1,183.32 HOLLIDAY ROCK CO.
170760 1,862.00 THE HUNTINGTON LIBRARY
170761 821.60 KOSMONT FINANCIAL SERVICES
170762 233.41 LA VERNE CAR WASH
170763 930.58 LOM,MOOI
170764 7,655.48 LOS ANGELES COUNTY PUBLIC WORKS
170765 535,398.00 METRO GOLD LINE
170766 100.00 MONALISA CHATTERJEE
170767 1,135.36 O.F. WOLFINBARGER
170768 1,152.89 CITY OF POMONA
170769 23,669.31 PRECISION CONCRETE CUTTING
170770 739.49 INTERSTATE BILLING SERVICE INC
170771 7,349.13 SAN GABRIEL VALLEY COUNCIL OF GOV'T
170772 200.32 SANCHEZ, KRISTIE
170773 40.00 SANDRA DAOUD
170774 1,526.97 SCHWALM GENERATION , INC.
170775 959.50 SIERRA PACIFIC ELEC. CONTRACTING
170776 1,937.08 SODEXO INC. & AFFILIATES
170777 124.89 SOUTHERN CALIFORNIA EDISON
170778 14,081.41 SOUTHLAND MECHANICAL, INC.
170779 2,375.78 SOUTHWEST LIFT & EQUIPMENT, INC.
170780 3,500.00 STUMP FENCE CO.
170781 655.99 TEC COLOR CRAFT
170782 2,000.00 TOWNSEND PUBLIC AFFAIRS, INC
170783 1,511.56 VERIZON WIRELESS
170784 49,029.06 WOODLAND'S GENERAL CONTRACTING LLC
EFT 238.14 ALL ST ATE POLICE EQUIPMENT CO.
EFT 1,300.00 ARAGON, RICHARD
EFT 2,832.13 BRENNTAG PACIFIC, INC.
EFT 407.86 GRAINGER
EFT 23,300.76 GREENSCAPE MAINTENANCE SERVICES INC
EFT 246.54 LA VERNE POWER EQUIPMENT, INC.
EFT 8,600.62 LEFTA SYSTEMS
EFT 16,309.00 NOBEL SYSTEMS
EFT 102.48 POMONA TRUCK & AUTO SUPPLY
EFT 2,367.20 RPW SRVICES, INC.
EFT 1,500.00 SHUSTER ADVISORY GROUP
EFT 674,553.25 THREE VALLEYS MUNICIPAL WATER DIST.
EFT 501.07 ULINE
Council Agenda Packet - October 7, 2024
CITY OF LA VERNE FY 2024-2025
REGISTER OF AUDITED DEMANDS - EXHIBIT A
CHECK NO.
EFT
EFT
EFT
EFT
EFT
EFT
EFT
EFT
EFT
EFT
EFT
EFT
EFT
BANKDRAWN
Total Demands
AMOUNT
150.76
283,844.77
56,081.52
10,166.67
8,937.50
163,000.00
5,613.50
13,907.08
5,355.00
11,000.00
14,326.97
16,852.33
140,021.74
477.71
2,141,945.33
1,393,605.37
6,377.18
3,541,927.88
ISSUED TO
TIDCO rNDUSTRES, INC.
WASTE MANAGEMENT
WEST COAST ARBORJSTS, INC.
CORDRAY ENTERPRISES LLC
DEROIAN VENTURES LLC
GLADIATOR FORENSICS LLC
GROUND ZERO TECHNOLOGIES LLC
LIBERTY COASTAL LLC
MARLYNPACHECOLLC
MICHAEL W. TYNES
OWSLEY ENTERPRISES LLC
ROGER BASS
STRATEGIC CONTRATING SERVICES
SO CAL GAS CO
Total Payroll and Employee Benefit Payments
Total LAIMPACT Demands
9/25/2024
Council Agenda Packet - October 7, 2024
CITY OF LA VERNE FY 2024-2025
REGISTER OF AUDITED DEMANDS - EXHIBIT A
CHECK NO. AMOUNT ISSUED TO
Payroll and Employee Benefit Payments:
170789 636.00 CITY OF LA VERNE EMPLOYEE FUND
170790 300.00 FIDELITY INVESTMENTS #P0754
170791 164.72 HEATHER REYES
170792 4.00 UNITED WAY CAMPAIGN
170793 230,810.21 UNITED ST ATES TREASURY
BANK DRAFT 587.46 ST ATE DISBURSEMENT BD0005689
BANK DRAFT 79,267.73 ST A TE OF CALIFORNIA
BANK DRAFT 190,567.53 ST A TE OF CALIFORNIA
BANK DRAFT 25,464.21 EMPOWER TRUST COMPANY, LLC-457
BANK.DRAFT 7,564.40 EMPOWER TRUST COMPANY, LLC-401A
BANK DRAFT 6,958.13 EMPOWER TRUST COMPANY, LLC-ROTH
BANK DRAFT 837,009.89 PAYROLL
EFT 8,672.13 CHARLES SCHWAB BANK
EFT 3,087.75 LA VERNE FIRE ASSOCIATION
EFT 2,511.21 LA VERNE POLICE OFFICERS ASSOC.
Total 1,393,605.37
Break down of standard providers and the benefits they provide Provider Benefits Description
A.C. Newman Co.
Delta Dental
The Hanford
Health Net
Kaiser
Wage Works
US Treasurey
State of California
Mass Mutual A
Mass Mutual B
Mass Mutual Roth
Lincoln National
Fire/Police/La Verne Employee Fund
LAIMPACT Law Enforcement Task Force Demands
170785 5,376.72
170786 140.46
170787 I 10.00
170788 750.00
MULTIPLE
Total 6,377.18
Accidental Death Life Insurance
Employee dental insurance coverage
Life Insurance Policy
Employee health insurance
Employee health insurance
Flexible Savings Account (FSA) deductions
Employee federal tax withholdings
Employee state income tax, unemployment insurance and child support/garnishments 401Aplan
457B plan
Roth plan
Replacement Social Security plan
Employee Group Dues
BANK OF AMERICA
FEDERAL EXPRESS CORPORATION
SOUTHLAND SHREDDING, INC.
WHOOSTER, INC.
LAI ENFORCEMENT OPERATIONS
9/25/2024
LAIMPACT demands are paid from federal asset forfeiture dollars allocated to LAIMPACT crime prevention activities. These funds are not City funds and are not available for City use outside ofLAIMPACTactivities.
City of La Verne,City Council
Agenda Report
DATE: October 7, 2024
TO: Honorable Mayor and City Council
FROM: Meg McWade, Public Works Director
SUBJECT: COOPERATIVE AGREEMENT BETWEEN THE CITY OF POMONA AND CITY
OF LA VERNE FOR MAINTENANCE OF TWO TRAFFIC SIGNALS ON
FULTON ROAD AT ARROW HIGHWAY AND ON FULTON ROAD AT
RAILROAD TRACKS
SUMMARY
Approval of this Cooperative Maintenance Agreement between Pomona and La Verne outlines each City's responsibilities for traffic signal maintenance and future improvements for two shared intersections at Fulton Road and Railroad Tracks and Fulton Road and Arrow Highway.
RECOMMENDATION
That the City Council approve the attached "Cooperative Agreement between City of Pomona and City of La Verne for the Maintenance of Two Traffic Signals on Fulton Road at Arrow Highway and at Railroad Tracks" and authorize the City Manager, or designee, to execute any necessary amendments or documents related to the implementation of the Agreement.
DISCUSSION
The A Line (formerly known as Gold Line) Light Rail project required the installation of a traffic signal at Fulton Road and Arrow Highway and upgrades to the traffic signals at Fulton Road and Railroad Tracks. These intersections are shared by the cities of La Verne and Pomona.
The intersection at Fulton Road and Arrow Highway is approximately 75% in the City of Pomona with the remaining 25% in the City of La Verne. The intersection at Fulton Road and the Railroad Tracks is approximately 50% in Pomona and 50% in La Verne.
While the installation of the new signal and upgrades at the Railroad Tracks are being handled by the Foothill Gold Line Construction Authority, the ongoing maintenance and operation will be the responsibility of the two agencies. As a result, there is a need for a Cooperative Agreement which outlines responsibilities and future shared funding maintenance items.
The key factors in the Agreement are as follows:
• Ongoing Signal Operation / Minor Maintenance and Electricity Bills at Fulton and Arrow - Pomona's responsibility
• Ongoing Signal Operation / Minor Maintenance and Electricity Bills at Fulton and Railroad - La Verne's responsibility
• Railroad Required Signal Improvements - Costs shared equally
Council Agenda Packet - October 7, 2024
Cooperative Agreement between the City of Pomona and City of La Verne for Maintenance of Two Traffic Signals on Fulton Road at Arrow Highway and on Fulton Road at Railroad Tracks , Page 2
• Major Improvements - Costs to each agency based on ownership share of affected signal. Work must be coordinated through respective budget processes (Excludes emergency work)
• Insurance - Set at current limits with review every three years to ensure the amounts remain current
• Term - Evergreen renewal unless an agency provides 60-day notice of termination • Future Amendments - Must be mutually agreed upon in writing
This agreement will provide a framework for maintenance and future Capital Improvement Project responsibilities. It is anticipated the City of Pomona will be considering this Agreement in October with an effective date occurring thereafter.
FISCAL ANALYSIS
The signal is expected to be operational for approximately 75% of the fiscal year, with no anticipated increase in maintenance costs. The estimated electricity cost of $100 per month can be absorbed into the existing traffic signal budget. As a result, no additional appropriations are requested, and future budgets will account for the new signal.
The City of Pomona will be responsible for ongoing maintenance, minor repairs, and electricity costs for the traffic signal at Fulton Road and Arrow Highway. The City of La Verne will cover these same responsibilities for the signal at Fulton Road and the Railroad Tracks.
Major improvements will be jointly funded based on ownership percentages. Pomona, which owns approximately 75% of the Fulton Road/Arrow Highway signal, will be responsible for 75% of any improvement costs. For the Fulton Road/Railroad Tracks signal, costs will be split equally, as each city owns 50%. These major improvements would be subject to City Council approval through a future budget process.
ENVIRONMENTAL ANALYSIS
Not applicable.
LEGAL REVIEW
The Agreement has been reviewed by both City of La Verne's and City of Pomona's City Attorneys.
ATTACHMENTS
1. Cooperative Agreement - Pomona and La Verne Fulton /Arrow and Fulton/RR Traffic SignalsIntersections
Coordinated with:
Cody Howing, City Engineer
Colin Purdy, Maintenance Manager
Council Agenda Packet - October 7, 2024
1 COOPERATIVE AGREEMENT BETWEEN
CITY OF POMONA AND CITY OF LA VERNE
FOR THE MAINTENANCE OF TWO TRAFFIC SIGNALS
ON FULTON ROAD AT ARROW HIGHWAY AND AT RAILROAD TRACKS
1. PARTIES AND DATE.
This Cooperative and Maintenance Agreement ("Agreement") is made and entered into this ____ day of _______, 2024, by and between the City of Pomona, a municipal corporation organized under the laws of the State of California with its principal address located at 505 S. Garey Avenue, Pomona, California 91766 ("POMONA") and the City Of La Verne, a municipal corporation organized under the laws of the State of California with its principal address located at 3660 D Street, La Verne, California 91750 ("LA VERNE"). POMONA and LA VERNE are sometimes referred to individually as "party" or “City” and collectively as "parties" or “Cities” herein.
2. RECITALS.
2.1 The intersection of Fulton Road at Arrow Highway is currently shared approximately seventy five percent (75%) POMONA and twenty five percent (25%) by LA VERNE.
2.2 The intersection of Fulton Road at Railroad Tracks is currently shared approximately fifty percent (50%) POMONA and fifty percent (50%) by LA VERNE.
2.3 POMONA and LA VERNE have jointly determined that traffic signals will be constructed at the intersections of Fulton Road at Arrow Highway and Fulton Road at Railroad Tracks as part of the Metro Gold Line Foothill Extension Project, as reflected in Exhibit A, incorporated herein by this reference.
2.4 POMONA and LA VERNE recognize the benefits to the public to improve traffic operation and safety at these two intersections and would like to share the future maintenance obligations for the signals.
NOW, THEREFORE, the parties agree as follows:
3. TERMS.
3.1 POMONA AGREES:
3.1.1. To be responsible for all regular maintenance, and minor repair of the Fulton Road at Arrow Highway traffic signal equipment and operation. Regular maintenance means cleaning and upkeep of the signal system. POMONA will solely cover the cost of all minor repairs and maintenance. Minor maintenance means replacing defective LED modules, defective push buttons, signage, striping, etc.
Council Agenda Packet - October 7, 2024
2 3.1.2. To be responsible for 100% of electricity bills for the Fulton Road at Arrow Highway traffic signal.
3.2 LA VERNE AGREES:
3.2.1. By execution of this Agreement, to grant POMONA and its contractors a license providing Pomona with the right to install or replace traffic signal equipment necessary to ensure proper operation within LA VERNE rights-of-way.
3.2.2 To be responsible for all regular maintenance, and minor repair of the Fulton Road at Railroad Tracks traffic signal equipment and operation. Regular maintenance means cleaning and upkeep of the signal system. LA VERNE will solely cover the cost of all minor repairs and maintenance. Minor maintenance means replacing defective LED modules, defective push buttons, signage, striping, etc.
3.2.3. To be responsible for 100% of electricity bills for the Fulton Road at Railroad Tracks traffic signal.
3.3 IT IS MUTUALLY AGREED AS FOLLOWS:
3.3.1. POMONA and LA VERNE agree to split the cost of any major repair necessary for the continuous operation of the traffic signals, with such costs split based on proportionate ownership as provided in Section 2.1 (Intersection of Fulton Road at Arrow Highway – 75% Pomona and 25% La Verne) and 2.2 (Intersection of Fulton Road at Railroad Tracks - 50% Pomona and 50% La Verne). Major repair means replacing defective or damaged: controllers, loop or video detections, poles, mast arms, luminaire arms, controller cabinets, service pedestals, foundations, underground conduits, signal/ped heads, rewiring, battery backup system, ADA ramps, hanging street name signs, and any permit fees from applicable railroad agencies. Unless major repairs are emergency in nature, improvements shall be coordinated with each agency’s respective budgeting processes.
3.3.2. POMONA and LA VERNE agree to evenly split any required training and/or permit fees for any major repairs or required improvements by the railroad operators, Caltrans, California Public Utilities Commission (CPUC), or Federal Railroad Association (FRA) for the intersection at Fulton Road and Railroad Tracks.
3.3.3. POMONA and LA VERNE agree to evenly split the cost to implement any required improvements by the railroad operators, Caltrans, CPUC, or FRA for the intersection at Fulton Road and Railroad Tracks. Should any improvements be required by these agencies at the Fulton and Arrow Traffic Signal, the costs will be shared based on ownership as provided in Section 2.1.
3.3.4. POMONA and LA VERNE agree to cooperate on any project necessary for any future upgrade of the traffic signals. The agencies will utilize the typical plan check and Capital Improvement Program (CIP) Project processes.
Council Agenda Packet - October 7, 2024
3 3.3.5. Ownership and title to all materials, equipment, and appurtenances installed as part of this agreement will automatically be vested with the jurisdiction for which the improvements reside and no further agreement will be necessary to transfer ownership.
3.3.6. POMONA and LA VERNE shall each defend, indemnify and hold the other party and its officials, officers, employees, consultants, subcontractors, volunteers and agents free and harmless from any and all claims, demands, causes of action, costs, expenses, liability, loss, damage or injury, in law or equity, to property or persons, including wrongful death, to the extent arising out of or incident to any negligent acts, omissions or willful misconduct of the indemnifying party or its officials, officers, employees, consultants, subcontractors, volunteers and agents arising out of or in connection with the performance of this agreement, including without limitation, the payment of all consequential damages and attorney’s fees and other related costs and expenses. Each City shall require all contractors and subcontractors performing work at either intersection to carry Comprehensive General Liability insurance in the minimum amount of One Million Dollars ($1,000,000) per occurrence and Three Million Dollars ($3,000,000) in the aggregate, including completed operations coverage, naming both Cities as additional insureds.
Each City shall also require all contractors and subcontractors performing work at either intersection to carry Workers’ Compensation coverage as required by law. This insurance amount is to be reviewed and updated every three years beginning with the effective date of the agreement.
3.3.7. This Agreement may be executed in one or more counterparts and when a counterpart shall have been signed by each party hereto, each shall be deemed an original, but all of which constitute one and the same instrument.
3.3.8. This Agreement contains the entire Agreement of the parties with respect to the subject matter hereof, and supersedes all prior negotiations, understandings, or agreements. The license granted hereunder shall be perpetual but may be terminated by either party by providing sixty (60) day written notice to the other party. Notwithstanding such termination, the indemnity obligations contained in Section 3.36 shall remain in full force and effect for actions taken during the time this Agreement was effective. This Agreement may only be modified by a written document signed by both parties.
3.3.9. The parties declare that each party has all requisite power and authority to conduct its business and to execute, deliver, and perform the Agreement. Each party warrants that the individuals who have signed this Agreement have the legal power, right, and authority to make this Agreement and bind each respective party.
3.3.10. If any portion of this Agreement is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect.
3.4 NOTICES : All notices required shall be sent by regular mail, postage prepaid, and addressed as follows:
Council Agenda Packet - October 7, 2024
4 CITY OF POMONA
Public Works Department
505 S. Garey Ave
Pomona, CA 91766
Attention: Rene Guerrero, Public Works Director
CITY OF LA VERNE
Public Works Department
3660 D Street
La Verne, CA 91750
Attention: Meg McWade, Public Works Director
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their authorized representatives on the date first written above. [SIGNATURES ON NEXT PAGE]
Council Agenda Packet - October 7, 2024
5 CITY OF POMONA: CITY OF LA VERNE:
By: _________________________ By: _________________________ Tim Sandavol, Mayor Tim Hepburn, Mayor
City of Pomona City of La Verne
Attest: Attest:
By: _________________________ By: _________________________ City Clerk Debra Fritz, Deputy City Clerk
Approved as to Form: Approved as to Form:
By: _________________________ By: _________________________ City Attorney Kimberly Hall Barlow, City Attorney
Council Agenda Packet - October 7, 2024
6 EXHIBIT A
Project Location
City of La Verne City of Pomona
Project Location
Fulton Rd and Railroad Tracks
Signal Ownership Percentage:
La Verne 50%; Pomona 50%
Fulton Rd and Arrow Hwy
Signal Ownership Percentage:
La Verne 25%; Pomona 75%
Council Agenda Packet - October 7, 2024
City of La Verne,City Council
Agenda Report
DATE: October 7, 2024
TO: Honorable Mayor and City Council
FROM: Ryan Ciotti, Acting Utilities Manager
SUBJECT: AWARD OF CONTRACT TO MMC INC, IN THE AMOUNT OF $204,000, FOR BOOSTER PUMP UPGRADE - ZONE 3 TO ZONE 4
SUMMARY
This action awards a construction contract to MMC Incorporated in the amount of $204,000 with funding in the FY 24/25 Approved CIP “Booster Pump Upgrade – Zone 3 to Zone 4” Project WT2403. The purpose of this booster pump project is to improve current pumping infrastructure to provide increased water reliability during the Water - Plateau Summit Pipeline Replacement Project.
RECOMMENDATION
That the City Council:
1. Award a public works construction contract to MMC Incorporated, the lowest, most responsible bidder, in the amount of $204,000 for the Booster Pump Upgrade - Zone 3 to Zone 4 (Proj. No. WT2403); and
2. Authorize staff to issue change orders not exceeding 10% of the construction budget for a total possible cost of $224,400.
DISCUSSION
The La Verne Water System’s Zone 3 to Zone 4 Booster Pump Station serves as a critical facility to provide residents living in mid to north La Verne (pressure zones 3 and 4) with adequate drinking water supply and pressure. The focus of this project is to enhance system reliability and make improvements to the booster pump station to allow water to also be pushed further north to zone 5.
Zone 5 is currently fed from the Plateau Summit 16” water transmission line. This pipeline is riveted steel pipe from the early 1900’s and needs immediate replacement. This water system rehabilitation project is a precursor to the Plateau Summit pipeline replacement project and must take place to allow adequate water supply and pressure to residents in pressure zone 5.
These booster pump station improvements - along with a temporary 6” pipeline which are part of the Plateau Summit Pipeline Project - are required in advance of the pipeline construction.
These enhancements will provide approximately 60 working days, at normal water demand levels, to complete the Plateau Summit Pipeline project without significant stress on the water system.
Council Agenda Packet - October 7, 2024
Award of Contract to MMC Inc, in the amount of $204,000, for Booster Pump Upgrade - Zone 3 to Zone 4, Page 2
Bid Process
The Public Works Department recently solicited bids for the project and was advertised on June 27, 2024. A mandatory pre-bid meeting was held on July 16, 2024, to brief the potential bidders on job details and to allow for bidders to walk through the booster pump station and review the scope of work prior to bidding. A total of five (5) bid proposals were received and opened via electronic platform “Planet Bids” by the deadline.
The following is a summary of the bid results:
BIDDER TOTAL
MMC Incorporated $204,000
R C Foster Corporation $211,000
Metro Builders & Engineers
Group, Ltd.
$315,105
R2BUILD $449
,000
MINAKO AMERICA
CORPORATION
$577
,960
A review was performed by the City’s consultant Water Engineers, Civiltec, with a recommendation to award to MMC Incorporated based on lowest responsive bid and confirming references. Should the City Council award the project as recommended, the start of work is intended to be in late 2024. The project is planned for a 20-working day duration.
FISCAL ANALYSIS
"Appropriations for the project are included in the Fiscal Year 2024-25 Approved Capital Improvement Program Budget within the Water Fund. The project, titled 'Booster Pump Upgrades – Zone 3 to Zone 4,' has an appropriation of $400,000, which will fund the design, construction contract of $204,000, construction contingencies, and other costs such as construction management and inspection.
ENVIRONMENTAL ANALYSIS
This project is categorically exempt from the California Environmental Quality Act, Section 15301 Existing Facilities, and City of La Verne environmental guidelines.
LEGAL REVIEW
The report and agreement have been reviewed by the City Attorney.
ATTACHMENTS
1. Zone 3 to Zone 4 Booster Bid Summary
2. Final Civiltec Award Recommendation_Booster
Coordinated with:
Meg McWade, Public Works Director
Cody Howing, City Engineer
Kristie Sanchez, Sr. Management Analyst
Council Agenda Packet - October 7, 2024
BID DATE: 7/30/2024 Summary of proposals received for:
TIME: 10:00 AM ZONE 3 TO ZONE 4 BOOSTER PUMP STATION IMPROVEMENT PROJECT PLACE: Planet Bids
Engineer's Estimate
MMC INC RC FOSTER CORPORATION METRO BUILDERS R2BUILD MINAKO AMERICA
CORPORATION
Sheet: 1 of 1
Computed By: RAC
Item
Description Quantity Unit Unit Price Total Unit Price Total Unit Price Total Unit Price Total Unit Price Total Unit Price TotalNo.
BASE BID
1 Mobilization and demobilization (BMP’s, bonds, and
insurances) for the lump sum price of 1 LS $ 15,000.00 $ 15,000.00 $ 18,000.00 $ 18,000.00 $2,650.00 $2,650.00 $40,712.00 $40,712.00 $44,000.00 $44,000.00 $57,000.00 $57,000.00 2 Remove and return existing piping and other equipment for the lump sum price of 1 LS $ - $ 6,000.00 $ 6,000.00 $1,000.00 $1,000.00 $12,871.00 $12,871.00 $26,500.00 $26,500.00 $7,000.00 $7,000.00 3 Furnish and install new pipeline, valves,
instrumentation, etc. as indicated on the plans for
the lump sum price of
1 LS $ 30,000.00 $ 30,000.00 $ 35,000.00 $ 35,000.00 $29,500.00 $29,500.00 $52,731.00 $52,731.00 $143,500.00 $143,500.00 $39,700.00 $39,700.00 4 Furnish and install new booster pump and motor for
the lump sum price of 1 LS $ 50,000.00 $ 50,000.00 $ 115,000.00 $ 115,000.00 $116,100.00 $116,100.00 $144,993.00 $144,993.00 $132,000.00 $132,000.00 $287,000.00 $287,000.00 5 Furnish and install all electrical improvements,
connections, and terminations, including pulling
wires for the lump sum price of
1 LS $ 20,000.00 $ 20,000.00 $ 20,000.00 $ 20,000.00 $47,250.00 $47,250.00 $17,999.00 $17,999.00 $65,000.00 $65,000.00 $106,300.00 $106,300.00 6 Perform all SCADA integration for the lump sum price
of 1 LS $ - $ 5,000.00 $ 5,000.00 $0.00 $0.00 $39,565.00 $39,565.00 $34,000.00 $34,000.00 $77,960.00 $77,960.00 7 Perform start up testing and provide O&M manuals for
the lump sum price of
1 LS $ 5,000.00 $ 5,000.00 $ 5,000.00 $ 5,000.00 $14,500.00 $14,500.00 $6,234.00 $6,234.00 $4,000.00 $4,000.00 $3,000.00 $3,000.00 Base Bid Amount $120,000.00 $204,000.00 $211,000.00 $315,105.00 $449,000.00 $577,960.00 Total Bid Amount $120,000.00 $204,000.00 $211,000.00 $315,105.00 $449,000.00 $577,960.00 Comments
Council Agenda Packet - October 7, 2024
Civil, Water, Wastewater, Drainage, Transportation and
Electrical/Controls Engineering ● Construction Management ● Surveying California ● Arizona
605 East Huntington Drive, Suite 205, Monrovia, CA 91016 | P: 626.357.0588
MEMORANDUM
City of La Verne
TO: Meg McWade, Public Works Director
FROM: Shem Hawes, P.E., Principal Engineer
DATE: September 17, 2024
SUBJECT: Award of Contract Recommendation, Zone 3 to Zone 4 Booster Pump
The Zone 3 to Zone 4 Booster Pump improvement project was identified during the design of the Plateau Forebay Transmission Pipeline Project . The booster improvement will provide additional capacity to Zone 4 while the transmission pipeline is shut down for its replacement. This project will ensure that typical demands in Zone 4 can be met by providing additional production capacity to this zone that will supplement production from the Plateau Forebay pump station. The engineer’s cost estimate for this project was $120,000.
Bidding Documents and Specifications for the subject project were issued on June 26, 2024, and bids were received on July 30, 2024. A pre-bid field walk was mandated for the Project and occurred on July 16, 2024. One addendum was issued in the bidding phase to postpone the bid to answer bidder questions. Five contractors were present at the pre- bid meeting. Five contractors submitted bids as follows:
Bidder's Name Bid
MMC Inc $204,000.00
RC Foster $211,000.00
Metro Builders & Engineers Group $315,105.00
R2BUILD $449,000.00
Minako America Group $577,960.00
The bids received were analyzed for compliance with the Notice Inviting Bids, Addendum No. 1 and the full bidding packet. All bids received do comply with all aspects of the request for bids. Bid Bonds were provided. Civiltec has not worked with MMC Inc, but the contractor does have experience with similarly sized projects.
RECOMMENDATION
The low bidder, M MC Inc, and the bids received were reviewed in detail for compliance with the Bidding and Contract Documents. M MC Inc has been engaged in booster pump construction and rehabilitation projects for over 24 years and complies with all requirements established for this project. It is recommended to award the Contract for the Z one 3 to Zone 4 Booster Pump
Council Agenda Packet - October 7, 2024
City of La Verne
Mrs. Meg McWade, Public Works Director
Zone 3 to Zone 4 Booster Pump Award Recommendation
September 17, 2024
Improvement Project to MMC Inc in the amount of $ 204,000.00. This bid price does not include contingencies or tax on the pulled pipeline. The Board may consider adding a 10% contingency factor to the award (the total will be $224,400.00).
X:\2017\2017172.00-La Verne-Plateau Forebay Transmission Pipeline\Documents\Bid\Recommendation\Award Recommendation_Booster.docx
Council Agenda Packet - October 7, 2024
City of La Verne,City Council
Agenda Report
DATE: October 7, 2024
TO: Honorable Mayor and City Council
FROM: Sam Gonzalez, Police Chief
SUBJECT: REJECTION OF PROPOSALS FOR VIDEO MANAGEMENT SYSTEMS
SUMMARY
The Police Department has an outdated video management system and plans to replace the system using federal grant funding. A Request for Proposals (RFP) was issued, resulting in eight submissions. Based on the proposals received, the City has determined a need to narrow down the scope of work, including the specification of equipment type that best meets the existing facilities at the Police Department and federal requirements related to the federal grant funding.
RECOMMENDATION
That the City Council reject all submitted proposals for the Video Management Systems RFP.
DISCUSSION
The Police Department's camera system, which includes a Video Management System (VMS) that has been in operation for over 15 years, currently manages 30 cameras within the Public Safety Building and an additional 15 remote cameras throughout the City.
The Police Department successfully applied for and received federal grant funding to replace and enhance the current camera system. An RFP was issued by the City resulting in eight submissions from various vendors with cost proposals ranging from $96,963.41 to $1,662,900.
After a thorough review of the proposals by an interdepartmental committee and our Information Technology consultant, it was recommended that all eight proposals be rejected.
The Department will be revising the RFP to provide additional clarity within the scope of work to ensure proposals received reflect the project budget and meet federal grant program requirements. All previous bidders will be informed of the updated RFP via email and the new RFP will be posted on planetbids.com.
FISCAL ANALYSIS
There is no direct fiscal impact associated with this item.
ENVIRONMENTAL ANALYSIS
Not applicable.
LEGAL REVIEW
The City Attorney has reviewed and approved this report.
ATTACHMENTS
Council Agenda Packet - October 7, 2024
Rejection of Proposals for Video Management Systems, Page 2
None
Report Prepared By:
Andrea Blockinger, Administrative Analyst
Council Agenda Packet - October 7, 2024
City of La Verne,City Council
Agenda Report
DATE: October 7, 2024
TO: Honorable Mayor and City Council
FROM: Ken Domer, City Manager
SUBJECT: LEAGUE OF CALIFORNIA CITIES GENERAL ASSEMBLY MEETING VOTING
DELEGATES
SUMMARY
The League of California Cities requests the selection of one delegate to vote on behalf of the City for the General Assembly Meeting and it is recommended that the City Council designate Mayor Tim Hepburn as the voting delegate and Mayor Pro Tem Steve Johnson as the alternate voting delegate. The selection must be appointed by the City Council.
RECOMMENDATION
That the City Council appoint Mayor Tim Hepburn to represent the City of La Verne as the voting delegate for the League of California Cities General Assembly Meeting and Mayor Pro Tem Steve Johnson as the alternate.
DISCUSSION
At the Annual Conference, the League of California Cities membership considers and takes action on resolutions establishing their legislative agenda for the future year. These resolutions will guide the League of California Cities in efforts to improve the quality and responsiveness of local government in California. The City Council must designate a voting delegate to vote at the annual business meeting, and designate an alternate voting delegate. The League of California Cities requires the voting delegate and alternative voting delegate be appointed by the City Council.
This year's Annual Conference is being held in Long Beach from Wednesday, October 16 through Friday, October 18 with the General Assembly meeting occurring on Friday, October
18. FISCAL ANALYSIS
Not applicable.
ENVIRONMENTAL ANALYSIS
Not applicable.
LEGAL REVIEW
The City Attorney has reviewed and approved this report.
ATTACHMENTS
None
Council Agenda Packet - October 7, 2024
League of California Cities General Assembly Meeting Voting Delegates, Page 2
Report Prepared By:
Andrea
Blockinger, Administrative Analsyt
Council Agenda Packet - October 7, 2024
City of La Verne,City Council
Agenda Report
DATE: October 7, 2024
TO: Honorable Mayor and City Council
FROM: Cody Howing, City Engineer
SUBJECT: PUBLIC HEARING REGARDING THE REQUEST FOR TIME EXTENSION ON VESTING TENTATIVE TRACT MAP NO. 82001 (500 BASELINE ROAD)
SUMMARY
On September 17, 2024, the City Council set a public hearing for October 7, 2024, to consider a one-year time extension to Vesting Tentative Tract Map (VTTM) No. 82001.
RECOMMENDATION
That the City Council adopt a resolution titled "A Resolution of The City Council, City of La Verne, California, Granting a Time Extension to Vesting Tentative Tract (VTTM) Map No. 82001 Pursuant to the Provisions of the TItle 7, Division 2, Chapter 3, of the Government Code of the State of California, establishing the new expiration date of the VTTM No 82001 as November 3, 2025.
DISCUSSION
On September 20, 2021 the City Council approved VTTM No. 82001 and Annexation Project. This proposed map included the subdivision of 19.44 acres of unincorporated Los Angeles County territory located within the Sphere of Influence of the City of La Verne. The site location is on the north side of Baseline Road, approximately 140 feet east of the intersection of Baseline Road and Rodeo Lane at 500 Baseline Road. Of the nine lots proposed on this map, seven are identified to contain single-family dwelling units, while the remainder have been identified as providing space for a debris basin and open space.
In addition to the approval of the VTTM, Ordinance No. 1102 was introduced for first reading, establishing a pre-annexation zoning designation from the County zoning of A-1-15000 to PR3D (HODZ) and adopting PR3D (HODZ) zoning for the project. Ordinance No. 1102 was adopted on October 4, 2021, resulting in the effective date of the VTTM No 82001 to be November 3, 2021.
In the past year, since the first one-year extension request was granted by the City Council, the annexation process was completed and approved by the Local Agency Formation Commission of Los Angeles County (LAFCO) in March 2024. Completion of the annexation marks a significant milestone for the project, allowing for progression of work on the next steps.
However, more work is required to be completed prior to filling of the final map for City Council approval. The applicant has requested a one-year extension of the VTTM allowed in Section 66452.6 of the Subdivision Map Act. Pursuant to City Code Section 16.16.210, the City Council may consider granting the requested extension during a noticed public hearing.
Council Agenda Packet - October 7, 2024
Public Hearing Regarding the Request for Time Extension on Vesting Tentative Tract Map No. 82001 (500 Baseline Road), Page 2
In accordance with Section 66452.6 of the Subdivision Map Act and pursuant to City Code Section 16.16.210 an extension of one-year may be granted by the City Council. In the event future extensions are required, Section 66452.6 of the Subdivision Map Act allows extensions of up to 10 years from the original tentative map approval. The City Code limits time extensions for Vesting Tentative Maps to one year, and shall only be granted following a noticed public hearing.
If the City Council elects not to grant the one-year extension, the VTTM will expire. The approval process for the proposed subdivision will then have to restart the application process should the applicant wish to continue to pursue the project.
FISCAL ANALYSIS
Not applicable.
ENVIRONMENTAL ANALYSIS
Not applicable.
LEGAL REVIEW
This report was reviewed and approved by the City Attorney.
ATTACHMENTS
1. Resolution for VTTM 82001 Extension
2. VTTM No. 82001 Map
Coordinated with:
Eric Scherer, Director of Community
Development
Council Agenda Packet - October 7, 2024
Resolution No. 24-XX
RESOLUTION NO. 24-XX
A RESOLUTION OF THE CITY COUNCIL, CITY OF LA VERNE, STATE OF
CALIFORNIA, GRANTING A ONE YEAR TIME EXTENSION ON VESTING TENTATIVE TRACT MAP NO 82001 PURSUANT TO THE PROVISIONS OF TITLE 7, DIVISION 2, CHAPTER 3, OF THE GOVERNMENT CODE OF THE STATE OF CALIFORNIA WHEREAS, this City has received a request from the property owner to extend the expiration date of Vesting Tentative Tract Map No 82001 located at 500 Baseline Road; and
WHEREAS, the owner of the property has obtained approval from the City Council for a Vesting Tentative Tract Map to subdivide 19.44 acres into 9 lots and to annex said property into the City of La Verne; and
WHEREAS, the City Engineer has reviewed said request and identified that the subject time extension request is allowed for consideration within the provisions of the California Subdivision Map Act; and
WHEREAS, a duly noticed public hearing was held on October 7, 2024, in accordance with City of La Verne Code Section 16.16.210(C); and
NOW, THEREFORE, IT IS HEREBY RESOLVED BY THE CITY COUNCIL OF THE CITY OF LA VERNE, CALIFORNIA AS FOLLOWS:
SECTION 1. That the above recitals are all true and correct.
SECTION 2. Pursuant to the resolution of intention, all protests or objections in reference to the one year extension to Vesting Tentative Tract map No. 82001 have been heard.
SECTION 3. That the map is consistent with the applicable zoning and general plan requirements in effect, and therefor this City Council hereby grants a one year extension to the expiration date of Vesting Tentative Map No. 82001, establishing the new expiration date as November 3, 2025.
SECTION 6. This Resolution shall take effect immediately upon its adoption.
Council Agenda Packet - October 7, 2024
Resolution No. 24-XX
SECTION 7. For any and all information relating to the proceedings, any documentation and/or information of a procedural or technical nature, your attention is directed to the below listed person at the local agency or department so designated:
CITY ENGINEER
3660 “D” STREET
LA VERNE, CA 91750
(909) 596-8726
PASSED, APPROVED AND ADOPTED this 16th day of SEPTEMBER, 2024. ______________________________
Tim Hepburn, Mayor
ATTEST:
____________________________________
Debra Fritz, Deputy City Clerk
I, Debra Fritz, Deputy City Clerk of the City of La Verne, DO HEREBY CERTIFY that Resolution No. 24-xx was duly passed and adopted by the said City Council at a regular meeting of the said Council held on the 16th day of September, 2024 by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
____________________________________
Debra Fritz, Deputy City Clerk
Council Agenda Packet - October 7, 2024
PE=1222
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PE=1222
2:1 MAX.
EDIG AL TR Land Planning, Civil Engineering, Surveying & Environmental Services 800 Royal Oaks Drive, Suite 104, Monrovia, California 91016 Ph.: (626) 578-7000, Fax: (626) 578-7373
http://www.ldcla.com
GENERAL NOTES:
(S)
(W)
(APPROX.)
DESCRIPTION
1 SHEET
2 TENT TR 082001, NOTES, SECTIONS, INDEX MAP
3 SECTIONS, DETAILS, LEGAL DESCRIPTION
TENT TR 082001
LEGEND, LOT SUMMARY
NOTES:
4 OAK TREE EXHIBIT
Council Agenda Packet - October 7, 2024
2 5
1 74'
89'
11'
21'
108'
14'
76'
20'
43'
34'
111'
108'
117'
3 96'
166'
82'
110'
98'
89'
81'
129' 142'
48'
7 6
198'
188' 258'
77'
304'
206'
390'
111'
499'
16'
73'
8'
47'
8'
4 8
38'
46'
26'
9'
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9 182'
46'
5'
61'
242'
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18'18' 12'12'
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8'
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12'
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5'
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48'
28' 20'
18' 18' 2'10'
L1
C1
C2
L2
5'
(1202)
21.04 (1201.2)FL
FS
PI=04.95
FS=06.70
PI=14.95
EVC
PI=19.95
20.95 EVC
FS=18.95
R=32'
PE=1222
PE=1219
PE=1212
PE=1207
(1220) (1230) (1240)
1240
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PE=1206
(1210)FL(1206)FL
2:1 SLOPE
2:1 SLOPE
05.35 1207
1217 TW R=7'
1214 TW R=0'
1220 TW R=4.0'1214 TW R=4.0'1225 TW R=8'1214 TW R=7'
1220 TW R=6'1212 TW R=6'R=8'
1222 TW
(1330)
(1370)
(1360)
(1340)
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PE=1313 PE=1325
1326 1345
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80 75
88 089990
2:1
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(1320)
(1310)
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(1270)
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1206
1221.3 TW
1325 TW R=12'
PE=1210
2:1
2:1
2:1
2:1 SLOPE
(1240) FG
1247 TG
(1230) FG
1223 FL
(1209) FL
1206 FL
1213 FL 1250 HP
1225 HP
JOIN EX. GRADE
JOIN EX.SIDEWALK
1214 FL
(1209)INV
(1213)FL
1226 TW1225 FL
R=0'
R=7'
1217 TW R=7'PRC
BC
EC
1342 TW
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(1204)FL
21.4 1230
50 46
57 1240
46 50 50
1230
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57 57
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1250
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50 5750GB
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VAR.
PE=1222
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1234.8 INV
1229.5 INV
1235.3 INV
1335
PE=1222
70 1215 FL
1217 FL
2:12:1
2:1
2:1 SLOPE
5% MIN.
5% MIN.
1246 FL
1256 FL
5% MIN.
1246 FL
1256 FL
1229 FL
1239 FL
1233 FL
2:1
2:11212 TG
1216 TG
1255 FL HP
1249 LP
1256 HP
5% MIN.
2:1 MAX.
(1216)FL
(1215)FL
1270 FL
R=3'
1260.8 TW1257.5 TF
1265
5% MIN.
23'
26'
26'
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38'
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(S) (S) (S) (S) (S) S S S
(W) (W) (W) (W) (W) (W) (W) (W) (W)
(W) (W) (W) (W) (W) (W) (W) (W) (W)
(W) (W) (W) (W) (W) (W) (W) (W) (W) (W) (W) (W) (W) (W) (W) (W) (W) (W) (W) (W) (W) (W) (W)
(W)
(W)
(W)
(W)
(W)
(W)
(W)
(W)
(W)(W)(W)
(S)
(S)
(S)
(S)
(S)
(S) (S)
(S)
(S)
(S)
(W)
(W)
(W)
(W)
(W)(W)
(W)
(W)
(W)
(W)
(W)
(W)
(W)
(W)
(W)
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W W W W W W W W W W
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EDIG AL TR Land Planning, Civil Engineering, Surveying & Environmental Services 800 Royal Oaks Drive, Suite 104, Monrovia, California 91016 Ph.: (626) 578-7000, Fax: (626) 578-7373
http://www.ldcla.com
426
4 4
3 42
27 27
27 2828 28 28
28 28
28 11
11 11
10 10 1012
13 14
14 15
16 17
18 19
19 19
19 21
20 20
24 23
23 NOTES:
29 3
3 2
DEBRIS BASIN
4 2
38 31
3 3
EXISTING E.P. TO REMAIN
EXISTING E.P. TO REMAIN
EXISTING E.P. TO REMAIN
EXISTING DRIVEWAY TO REMAIN
20 30
35 22
8 8
8 8
8 8
8 9
9 36
36 25
26 26
37 3737
3939
41 3
46 4243
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44 44
44 21
44 3
31 CAPACITY: 7,400 CY
44 45
46 46
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34 34
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30 21 43
19 47
48 49
49 50
50 5026
3 3
DEBRIS CONE
51 19
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Council Agenda Packet - October 7, 2024
Lot Schedule
Lot No.
1 2
3 4
5 6
7 8
9 Lot Area Gross
(S.F.)
11,589
9,599
9,267
9,306
13,585
37,408
152,376
116,526
468,258
Lot Area Net
(S.F.)
-
-
-
-
11,934
33,842
142,711
DEBRIS BASIN
OPEN SPACE
Line Table
Line #
L1
L2
Length
49.78'
96.03'
Direction
S0° 05' 56.93"E
S14° 12' 10.40"W
Curve Table
Curve #
C1
C2
Delta
10°40'30"
24°58'30"
Length
93.15'
130.77'
Radius
500.00'
300.00'
Tangent
46.71'
66.44'
EDIG AL TR Land Planning, Civil Engineering, Surveying & Environmental Services 800 Royal Oaks Drive, Suite 104, Monrovia, California 91016 Ph.: (626) 578-7000, Fax: (626) 578-7373
http://www.ldcla.com
EASEMENT NOTES
Council Agenda Packet - October 7, 2024
EDIG AL TR Land Planning, Civil Engineering, Surveying & Environmental Services 800 Royal Oaks Drive, Suite 104, Monrovia, California 91016 Ph.: (626) 578-7000, Fax: (626) 578-7373
http://www.ldcla.com
Council Agenda Packet - October 7, 2024
City of La Verne,City Council
Agenda Report
DATE: October 7, 2024
TO: Honorable Mayor and City Council
FROM: Ryan Ciotti, Acting Utilities Manager
SUBJECT: AWARD CONSTRUCTION CONTRACT, IN THE AMOUNT OF $3,110,000, TO
MNR CONSTRUCTION FOR PLATEAU SUMMIT WATER PIPELINE
SUMMARY
This action will award a construction contract to MNR Construction Incorporated in the amount of $3,110,000 for the Plateau Summit Water Transmission Pipeline Replacement Project, Proj.
No. WT2301, with a total possible construction cost of $3,576,500 to include contingencies. The purpose of the project is to replace approximately 2,000 feet of 16” riveted steel transmission mainline that has reached its functional life span.
RECOMMENDATION
That the City Council:
1. Award a public works construction contract to MNR Construction Incorporated, the lowest, most responsible bidder, in the amount of $3,110,000 for the Plateau Summit Water Transmission Pipeline Replacement Project (Proj. No. WT2301) and authorize the City Manager to execute the contract; and
2. Authorize staff to issue change orders not exceeding 15% of the construction budget for a total possible construction cost of $3,576,500.
DISCUSSION
The City’s Plateau Summit Water Transmission Pipeline serves as critical infrastructure to provide residents living in northern La Verne (Zone 5) with adequate drinking water supply and pressure, as well as fire protection. The focus of this project is to repair and replace segments of the aging pipeline.
Due to the unique location of this pipeline, the top and bottom segments will be replaced traditionally with ductile iron pipe. The middle section of the pipeline that climbs the canyon will be slip-lined with a pipe liner leaving the existing pipe in place with the new liner inside, as outlined in the attached memo from Civiltec, the City’s contract water engineering consultants.
New valves will be cut in at the top and bottom of the project to reduce water loss. A temporary above ground 6" steel line will be installed to provide additional water supply and help reduce the impact on the water system.
Bid Process
The Public Works Department recently solicited bids for the project. The project was advertised on June 27, 2024, and closed on August 12, 2024. A mandatory pre-bid meeting was held on
Council Agenda Packet - October 7, 2024
Award Construction Contract, in the amount of $3,110,000, to MNR Construction for Plateau Summit Water Pipeline , Page 2
July 16, 2024, to brief the potential bidders on job details and to allow for bidders to walk the pipeline and review the scope of work prior to bidding. A total of two (2) bid proposals were received and opened via the electronic platform “Planet Bids” after the deadline. The following is a summary of the bid results recommended for award by City Staff:
BIDDER TOTAL
MNR Construction
Incorporated
$3,110,000.00
KEC Engineering $5,475,925.00
The bids received were analyzed for compliance with the Notice Inviting Bids, Addendum No. 1, and the full bidding packet. Both bids received complied with all aspects of the request for bids.
MNR Construction Incorporated is recommended by Civiltec, based on the low bid. Additionally, the company has experience with similarly sized projects. Upon City Council award, the contract will be executed to provide for materials ordering. The start of construction is intended to be in January 2025, when water demands are typically lower. The project is planned for a 90- working days duration.
FISCAL ANALYSIS
The construction contract for the project is $3,110,000. Due to the complexity of the project, particularly the unique location of the pipeline, a 15% contingency of $466,500 is recommended, bringing the total potential construction cost to $3,576,500. The original engineer's estimate for the hillside pipeline work was $2,400,000; however, additional scope was added to upgrade the entire pipeline, which is estimated to be over 100 years old.
Sufficient appropriations for this project have been allocated across multiple fiscal years (FY), starting in FY 2017-18, with additional appropriations made in FY 2024-25 to cover the contract and contingencies, not to exceed $3,576,500. Funding for the project is sourced from both the Water Fund and the American Rescue Plan Act (ARPA). In April 2022, $1.5 million in ARPA funds were appropriated by the City Council during the Mid-Year Budget update.
At the time of the ARPA appropriation, the U.S. Treasury had not yet issued a final rule on spending guidelines. Based on preliminary rules, the City identified approximately $3 million in revenue loss and included it in the spending plan. Once the final rule was released, it confirmed that the City’s entire ARPA allocation of $7,648,860 could be treated as revenue loss, making it eligible for any general government expenses rather than being used to support the Water Fund, which is an Enterprise Fund. The Water Fund operates as an enterprise fund, meaning it is self-sustaining, with its revenues coming from user fees. This ensures that only those who use the service pay for its costs, not the general taxpayer.
Using General Fund dollars to subsidize the Water Fund would undermine its independence and shift the financial burden from users to all taxpayers, which is not equitable. Additionally, the General Fund is meant to support essential services like public safety and parks, so diverting resources to the Water Fund could reduce the resources available for these services.
Maintaining the Water Fund’s self-sufficiency promotes responsible financial management without relying on General Fund resources. With the final ARPA rule in place, the City adjusted
Council Agenda Packet - October 7, 2024
Award Construction Contract, in the amount of $3,110,000, to MNR Construction for Plateau Summit Water Pipeline , Page 3
its funding to cover general government expenses, preserving the Water Fund’s independence.
Rather than transferring ARPA funds back from the Water Fund to offset General Fund revenue losses, the City chose to offset the increased annual overhead transfer, which was adjusted in 2023 based on an existing methodology under review. A new study to update the overhead allocation methodology is underway and is expected to reduce future transfers from the Water Fund to the General Fund. Any potential shortfall will be offset by the general fund’s ARPA allocation, with a future true-up based on the study’s outcome.
This ensures compliance with ARPA guidelines, preserves the Water Fund’s enterprise status, and maintains a clear separation between enterprise and General Fund activities, allowing for more transparent and efficient financial management.
ENVIRONMENTAL ANALYSIS
This project is categorically exempt from the California Environmental Quality Act, Section 15301 Existing Facilities, and City of La Verne environmental guidelines.
LEGAL REVIEW
The report and agreement have been reviewed by the City Attorney's Office.
ATTACHMENTS
1. Plateau Summit Pipeline Bid Summary 2024
2. Final Civiltec Award Recommendation_Pipeline
Coordinated with:
Meg McWade, Public Works Director
Cody Howing, City Engineer
Kristie Sanchez, Sr. Management Analyst
Council Agenda Packet - October 7, 2024
BID DATE: 7/30/2024 Summary of proposals received for:
TIME: 10:00 AM PLATEAU SUMMIT PIPELINE REPLACEMENT
PLACE: Planet Bids
Engineer's Estimate
KEC MNR
Sheet: 1 of 1
Computed By: RAC
Item Description Quantity Unit Unit Price Total Unit Price Total Unit Price TotalNo.
BASE BID
1 Mobilization and demobilization including erosion and sediment controls, construction BMPs, bonds and insurance, and clean-up 1 LS $230,000.00 $ 230,000.00 $287,250.00 $ 287,250.00 $100,000.00 $100,000.00 2 Excavation Safety Measures 1 LS $40,000.00 $ 40,000.00 $302,000.00 $ 302,000.00 $33,000.00 $33,000.00 3 Furnish and install Linestops for 3 days 1 LS $50,000.00 $ 50,000.00 $123,300.00 $ 123,300.00 $18,700.00 $18,700.00 4 Provide excavation, concrete, and additional support for Linestop installation 1 EA $10,000.00 $ 10,000.00 $70,000.00 $ 70,000.00 $12,400.00 $12,400.00 5 Furnish and install wharf head hydrants including piping, valves, and connections to existing piping 25 LF $1,000.00 $ 25,000.00 $3,100.00 $ 77,500.00 $630.00 $15,750.00 6 Furnish and install 6" temporary hi-line piping and restraints (by rain for rent OAE) 1 LS $100,000.00 $ 100,000.00 $429,650.00 $ 429,650.00 $68,950.00 $68,950.00 7 Furnish and install below ground piping, valves, and fittings including excavation and backfill 1 LS $175,000.00 $ 175,000.00 $1,232,950.00 $ 1,232,950.00 $968,730.00 $968,730.00 8 Restore all surfaces including paving, hydroseeding, driveway, and curb & gutter where applicable 1 LS $50,000.00 $ 50,000.00 $460,000.00 $ 460,000.00 $77,400.00 $77,400.00 9 Furnish and install vaults with lids 1 LS $120,000.00 $ 120,000.00 $127,500.00 $ 127,500.00 $63,000.00 $63,000.00 10 Furnish and install check valve and bypass 1 LS $15,000.00 $ 15,000.00 $150,000.00 $ 150,000.00 $294,000.00 $294,000.00 11 Pressure tests, disinfections, and start up testing 1 LS $20,000.00 $ 20,000.00 $31,600.00 $ 31,600.00 $51,370.00 $51,370.00 12 Furnish and install CCTV inspection and pipe cleaning for Bulletliner (cost provided by Phil Torres, Curaflo/CPM) 1 LS $20,000.00 $ 20,000.00 $180,458.00 $ 180,458.00 $180,458.00 $180,458.00 13 Furnish and install Bulletliner System (cost provided by Phil Torres, Curaflo/CPM) 1 LS $1,500,000.00 $ 1,500,000.00 $1,119,542.00 $ 1,119,542.00 $1,119,542.00 $1,119,542.00 14 Provide excavation, installation coordination and support, and mark up for Bulletliner System 1 LS $100,000.00 $ 100,000.00 $710,675.00 $ 710,675.00 $89,400.00 $89,400.00 15 Abandon and/or remove existing pipe 1 LS $30,000.00 $ 30,000.00 $173,500.00 $ 173,500.00 $17,300.00 $17,300.00 Base Bid Amount $2,485,000.00 $5,475,925.00 $3,110,000.00 Total Bid Amount $2,485,000.00 $5,475,925.00 $3,110,000.00 Comments
Council Agenda Packet - October 7, 2024
Civil, Water, Wastewater, Drainage, Transportation and
Electrical/Controls Engineering ● Construction Management ● Surveying California ● Arizona
605 East Huntington Drive, Suite 205, Monrovia, CA 91016 | P: 626.357.0588
MEMORANDUM
City of La Verne
TO: Meg McWade, Public Works Director
FROM: Shem Hawes, P.E., Principal Engineer
DATE: September 17, 2024
SUBJECT: Award of Contract Recommendation, Plateau Forebay Transmission Pipeline
The Plateau Forebay Transmission Pipeline rehabilitation project was identified in the 20 20 Water Master Plan as a priority Capital Improvement Project. The City of La Verne (City) has been in the design of this project since 2017 due to the difficulty of the terrain and existing utilities. In light of the difficulties and risks associated with hillside construction in a very congested easement corridor, the City determined pipeline lining to be the best method of installation for a large portion of the pipeline alignment. Pipeline lining has proven to become a viable alternative to pipeline replacement. In this case, due to risks of slope failure or excessive costs associated with slope stability improvements from open cut practices, the pipeline lining solution was selected. The estimated construction cost for the Project was $2,400,000, before additions to the pipeline alignment were made and based upon cost trends in early 2024 towards the end of the design phase.
Bidding Documents and Specifications for the subject project were issued on June 26, 2024, and bids were received on August 12, 2024. A pre-bid field walk was mandated for the Project and occurred on July 16, 2024. One addendum w as issued in the bidding phase to postpone the bid to provide bidders the opportunity to create their bids. Nine contractors were present at the pre-bid meeting. Two contractors submitted bids as follows:
Bidder's Name Bid
MNR Construction $3,110,000.00
KEC Engineering $5,475,925.00
SAK Construction No Bid
Genesis Construction No Bid
Azuria Construction No Bid
Gentry General Construction No Bid
Dominguez General Engineering No Bid
Mladen Buntich Construction No Bid
Advanced Industrial Services No Bid
The bids received were analyzed for compliance with the Notice Inviting Bids, Addendum No. 1 and the full bidding packet. Both bids received do comply with all aspects of the request for bids. Bid Bonds were provided. Civiltec has not worked with either contractor, but both have experience with similarly
Council Agenda Packet - October 7, 2024
City of La Verne
Mrs. Meg McWade, Public Works Director
Plateau Forebay Transmission Pipeline Award Recommendation September 17, 2024
sized projects.
RECOMMENDATION
The low bidder, MNR Construction, and the bids received were reviewed in detail for compliance with the Bidding and Contract Documents. MNR Construction has been engaged in pipeline construction and rehabilitation projects, has received favorable references from other similarly sized water agencies, and complies with all requirements established for this project. It is recommended to award the Contract for the Plateau Forebay Transmission Pipeline Project to MNR Construction in the amount of $3,110,000.00. This bid price does not include contingencies or tax on the pulled pipeline. The Board may consider adding a 15% contingency factor to the award (the total will be $3,576,500.00).
X:\2017\2017172.00-La Verne-Plateau Forebay Transmission Pipeline\Documents\Bid\Recommendation\Award Recommendation_Pipeline.docx
Council Agenda Packet - October 7, 2024
City of La Verne,City Council
Agenda Report
DATE: October 7, 2024
TO: Honorable Mayor and City Council
FROM: Christy Lopez, Finance Director
SUBJECT: ADOPTION OF A RESOLUTION AUTHORIZING THE UPDATE TO ADMINISTRATIVE REGULATION 215, INVESTMENT POLICY AND ALLOW
FOR THE INVESTMENT OF MONIES INTO CALIFORNIA CLASS PRIME FUND.
SUMMARY
Staff recommends updating the City’s Investment Policy to include the California Cooperative Liquid Assets Security System (California CLASS) Prime Fund as an allowable investment. The adoption of this Resolution will also authorize the City to invest funds in the California CLASS Prime Fund, which is a local government investment pool sponsored by Cal Cities and the California Special Districts Association. The fund offers the opportunity to optimize interest earnings while maintaining safety and liquidity.
RECOMMENDATION
That the City Council adopt a Resolution titled, “A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF LA VERNE, CALIFORNIA, ACKNOWLEDGING RECEIPT AND FILING OF THE CITY’S INVESTMENT POLICY FOR PUBLIC FUNDS AND AUTHORIZING THE INVESTMENT OF MONIES IN THE CALIFORNIA CLASS PRIME FUND.”
DISCUSSION
The California CLASS is a Joint Powers Authority (JPA) created under the California Joint Exercise of Powers Act. It is governed by a Board of Trustees comprising finance professionals from cities and special districts. The Prime Fund complies with California Government Code Section 53601(p), with the investment objectives of preserving principal, providing daily liquidity, earning a competitive rate of return, and maintaining a stable Net Asset Value.
Currently, the City participates in the Local Agency Investment Fund (LAIF). Adding California CLASS would diversify the City’s investment portfolio, enhancing the ability to optimize interest earnings while preserving safety and liquidity. This option was identified with assistance from the City’s investment advisor, Shuster Advisory Group.
The City has reviewed California CLASS to ensure compliance with its Investment Policy.
Adding this investment pool will expand the City’s portfolio and provide more flexibility in managing public funds.
An attachment is provided listing other government entities that have already adopted the use of the California CLASS Prime Fund.
FISCAL ANALYSIS
Council Agenda Packet - October 7, 2024
Adoption of a Resolution Authorizing the Update to Administrative Regulation 215, Investment Policy and Allow for the Investment of monies into California Class Prime Fund., Page 2
No direct fiscal impact is anticipated. The inclusion of California CLASS provides an additional tool to optimize the City’s investment returns.
ENVIRONMENTAL ANALYSIS
Not Applicable
LEGAL REVIEW
The City Attorney has reviewed and approved this report.
ATTACHMENTS
1. La Verne IPS (JPA) 10-7-2024 (new template)
2. La Verne IPS with red-lined updates (JPA) 10-7-2024
3. La Verne Investment Policy Reso 24-xx
4. 03.24 - California CLASS Participant List
5. 11.23 - California CLASS Features and Benefits
6. 11.23 - California CLASS Product Comparison (1)
Council Agenda Packet - October 7, 2024
Administrative Regulation
Number: 215 Issued: 07-01-2018 Effective Date: 10-07-2024 Revised:10-02-2023 Subject: INVESTMENT POLICY
PURPOSE
This statement is intended to provide guidelines for the prudent investment of the City of La Verne’s temporary idle cash and outline the policies for maximizing the efficiency of the cash management system. The ultimate goal is to enhance the economic status of the City while protecting its pooled cash.
SCOPE
Included in the scope of the City's investment policy are the following major guidelines and practices which are to be used in achieving the City's primary investment objectives:
▪ Investment Authority and Responsibilities
▪ Eligible Financial Institutions
▪ Authorized Investments
▪ Investment Maturities
▪ Cash Management
▪ Evaluation of Investment Performance
▪ Investment Reporting
▪ Investment Policy Review and Adoption
It is intended that this policy cover all funds and investment activities under the direct authority of the City. These funds are accounted for in the City's Annual Comprehensive Financial Report (ACFR) and include the general fund, special revenue funds, debt service funds, capital project funds, enterprise funds, internal service funds and agency funds. Funds excluded from this policy include proceeds of debt issuance, retirement/pension funds and deferred compensation funds, and pension or other post- employment benefit funds held in a trust.
OBJECTIVES
The City’s cash management system is designed to accurately monitor and forecast expenditures and revenues, thus enabling the City to invest funds to the fullest extent possible. The City attempts to obtain a market rate of return on funds as long as investments meet the criteria established for safety and liquidity.
Council Agenda Packet - October 7, 2024
~ LAVERNE
Administrative Regulation No. 215, Investment Policy, page 2
POLICY AND INVESTMENT PHILOSOPHY
The City of La Verne’s investment philosophy is to invest conservatively to minimize risk.
Investments shall be made in the context of the Prudent Investor Rule for trustees of local government money, which is defined in Government Code Section 53600.3:
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 like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency.
The fundamental principles of the City’s philosophy are:
▪ Diversification of the portfolio by investment type or maturity; ▪ Quality standards for securities issuers;
▪ Limits on the maximum maturity of investments; and
▪ Passive investment strategy of purchasing investments with the intent to hold them until maturity.
Portfolio diversification in terms of maturity, instrument types and issuer helps to reduce the overall risk while obtaining an average market rate of return. Therefore, the portfolio should consist of a mix of various types of securities, issuers and maturities. Occasional measured losses are inevitable and must be considered within the context of the overall portfolio's investment return, provided that adequate diversification has been implemented.
DELEGATION OF AUTHORITY
Investment authority and responsibility to invest or reinvest the funds of the City of La Verne is hereby delegated by the City Council to the Finance Director. The Finance Director is a trustee and a fiduciary subject to the prudent investor standard.
The City may retain the services of an outside investment advisor or manager as approved by the City Council to assist with the City’s investment program who shall make all investment decisions and transactions in strict accordance with State Law, this Policy and such other written instructions as are provided.
AUTHORIZED INVESTMENTS
Investments may be made in the following media:
1. Money Market Account
2. Passbook Savings Account
3. U. S. Treasury Issues
4. Federal Agency Securities
5. Certificates of Deposit
6. Negotiable Certificates of Deposits
Council Agenda Packet - October 7, 2024
Administrative Regulation No. 215, Investment Policy, page 3
7. Bankers Acceptances
8. Commercial Paper
9. Medium Term Corporate Notes
10. Repurchase Agreements
11. Local Agency Investment Fund (LAIF)
12. Los Angeles County Pooled Funds
13. Secured Obligations
14. Mutual Funds (including money market)
15. Joint Powers Authority Pools
Descriptions of these investments are listed in Appendix A.
Proceeds from bonds and other obligations of indebtedness that are held by a trustee or fiscal agent may be invested in any instruments as specified in the bond indenture, resolution or issuance agreement.
Criteria for selecting investments and the order of priority are:
1. Safety. The safety and risk associated with an investment refers to the potential loss of principal, interest or a combination of these amounts. The City only operates in those investments that are considered very safe.
2. Liquidity. This refers to the ability to convert investments into cash or cash equivalents without significant loss of principal. Liquidity is an important investment quality especially when the need for unexpected funds occurs occasionally.
3. Yield. Yield is the potential dollar earnings an investment can provide, and sometimes is described as the rate of return. Yield should become a consideration only after the basic requirements of safety and liquidity have been met.
INTERNAL CONTROL
The Finance Department is responsible for ensuring compliance with the City's investment policy as well as for establishing systems of internal control designed to prevent loss due to fraud, employee error, misrepresentation by third parties, unanticipated changes in financial markets, or imprudent actions by city officers and employees. Timely bank reconciliations are conducted to ensure proper handling of all transactions.
An independent analysis by an external auditor shall be conducted annually to review internal control and compliance with policies and procedures.
CONFLICTS OF INTEREST
The City adopts the following policy concerning conflicts of interest:
1. Officers and employees involved in the investment process shall not conduct personal business activity that could conflict with proper execution of the investment program, or which could impair their ability to make impartial investment decisions.
Council Agenda Packet - October 7, 2024
Administrative Regulation No. 215, Investment Policy, page 4
2. Officers and employees involved in the investment process shall disclose to the City Clerk any material financial interests in financial institutions that conduct business with the City of La Verne, and they shall further disclose any large personal financial/investment positions that could be related to the performance of the City's portfolio.
SAFEKEEPING
Securities purchased from brokers/dealers shall be held in third party safekeeping by the trust department of the local agency’s bank or other designated third-party trustee/agent in local agency’s name and control, whenever possible. All trades where applicable will be executed by delivery vs. payment (DVP). This ensures that securities are deposited in the eligible financial institution prior to the release of funds.
INVESTMENT OBJECTIVE
The cash management system of the City of La Verne is designed to:
▪ Safeguard and protect the principal of the funds in the City’s investment portfolio; ▪ Ensure that the City has adequate cash to pay budgeted expenditures and other operating costs by selecting maturities that reflect projected future; ▪ Achieve a return on the funds; and
▪ Comply with applicable law governing investment of governmental funds.
REPORTING
In accordance with Government Code Section 53646(b)(1), the Treasurer shall render a quarterly report to the City Council. The Treasurer’s report shall be submitted to the City Clerk’s office within 30 days following the end of the quarter covered by the report. The report on investments shall include the:
▪ Type of each investment,
▪ Issuer of each investment,
▪ Date of purchase and maturity of each investment,
▪ Par value and dollar amount invested on each security, investment and moneys held by local agency,
▪ Interest rate or yield on each investment,
▪ Current market value of the investment portfolio as of the date of the report and the source of the valuation.
In addition, the report on investments shall include a statement:
Council Agenda Packet - October 7, 2024
Administrative Regulation No. 215, Investment Policy, page 5 ▪ As to whether the City’s investments comply with this Statement of Investment Policy, and if not, why not,
▪ Denoting the ability of the City to meet its expenditure requirement for the next six months.
The investment portfolio will be diversified to avoid incurring unreasonable and avoidable risks regarding specific security types or individual financial institutions. The City may invest to the maximum limits with LAIF. Investments made through Broker/Dealers will be made through firms who are members of the New York Stock Exchange or regulated by either the Securities Exchange Commission or the National Association of Securities Dealers. In addition, investment advisors must have at least five years’ experience investing in the securities and obligations authorized under this policy and managing assets in excess of five hundred million dollars ($500,000,000).
No investment (except for those made from the proceeds of bonds) will be made in any security which at the time of the investment has a term remaining to maturity in excess of five years.
The City strives to maintain the level of investment of all funds as near 100 percent as possible through daily and projected cash flow determinations. Idle cash management and investment transactions are the responsibility of the City Treasurer and Finance Director.
The basic premise underlying the City’s investment philosophy is, and will continue to be, to ensure that money is always safe and available when needed.
DEPOSITS
Money must be deposited in a nationally or state-chartered commercial bank, savings bank, savings and loan association, or credit union in the state. It may be in inactive deposits, active deposits, or interest-bearing active deposits. The deposits cannot exceed the amount of the bank’s, savings and loan’s, or credit union’s paid up capital and surplus.
The bank or savings and loan must secure the active and inactive deposits with eligible securities having a market value of 110 percent of the total amount of the deposits. State law also allows, as an eligible security, first trust deeds having a value of 150 percent of the total amount of the deposits.
The Finance Director or Treasurer may at his/her discretion waive security for that portion of a deposit, which is insured pursuant to federal law. Currently, the first $250,000 of a deposit is federally insured. It is to the City of La Verne’s advantage to waive this collateral requirement for the first $250,000 because we receive a higher interest rate.
DEPOSITORY SERVICES
ACTIVE DEPOSITS are demand or checking accounts, which receive revenues and pay disbursements.
Council Agenda Packet - October 7, 2024
Administrative Regulation No. 215, Investment Policy, page 6 INTEREST-BEARING ACTIVE DEPOSITS are money market accounts at a financial institution (i.e., bank, savings and loan, credit union). These accounts are demand accounts (i.e., checking accounts) with restricted transaction activity.
INACTIVE DEPOSITS are certificates of deposits issued in any amount for periods of time as short as fourteen days and as long as several years. Interest must be calculated on a 360-day basis, actual number of days. At any given time, the City may have certificates of deposit in numerous financial institutions. As a matter of policy, we do not invest in Certificate of Deposits (CDs) for longer than one year or invest through an outside CD broker.
We require that each financial institution submit current financial statements, which are evaluated by staff prior to the investment of funds. We use the following criteria:
1. The institution must have been in business at least four years.
2. The institution must have assets of at least $500 million and a net worth to asset value greater than 3.5 percent.
3. Investments in Credits Unions require an equity (net worth) to asset value of 5.0 percent.
PASSBOOK SAVINGS ACCOUNT is similar to an inactive deposit except not for a fixed term.
The interest rate is generally lower than CDs, but the savings account allows us flexibility. Funds can be deposited and withdrawn according to City needs.
INVESTMENT SECURITIES
Investment of City funds is governed by the California Government Code Sections 16429.1 and 53601. Investments may not have a term or maturity at the time of investment of longer than that authorized by Section 53601 or five years (measured by settlement date) unless the City Council has granted express authority, no less than three (3) months prior to the investment, for a specific investment to exceed such limit. It should be noted that while the Government Code specifies the maximum percentage of the portfolio which may be held in each type of investment at any one time, fluctuations in the portfolio balance will prevent strict adherence to such restrictions.
Therefore, percentage limitations shall apply to investments at the time of purchase. The City will diversify its investments by security type and institution. Within the context of the State limitations, the following investments are authorized:
1. U.S. TREASURY OBLIGATIONS
Government Code Section 53601(b): are direct obligations of the United States Government.
These issues are called bills, notes, and bonds. The maturity range of new issues is from thirteen weeks (T-bills) to thirty years (T-bonds). These are highly liquid and are considered the safest investment security.
2. U.S. GOVERNMENT SECURITIES
Government Code Section 53601(f): are issued by direct U. S. Government agencies or quasi- government agencies. The United States Government guarantees these issues directly or indirectly. Examples of these securities are Federal Home Loan Bank (FHLB) notes, Federal National Mortgage Associations (FNMA) notes, Federal Farm Credit Bank (FFCB) notes, Federal Intermediate Credit Bank (FICB) debentures, Small Business Administration (SBA) notes,
Council Agenda Packet - October 7, 2024
Administrative Regulation No. 215, Investment Policy, page 7 Government National Mortgage Association (GNMA) notes and Student Loan Association (SALLMAE) notes.
3. CERTIFICATES OF DEPOSIT
Government Code Section 53635 are investments for inactive funds issued by banks, savings and loans and credit unions. Investments of $250,000 are insured respectively by Federal Deposit Insurance Corporation (FDIC). Federal Savings and Loan Insurance Corporation (FSLIC) and the National Credit Union Share Insurance Fund (NCUSIF). Certificates of Deposit can be issued from fourteen days to several years in maturity allowing the City investment of funds to be matched to cash flow needs. For deposits exceeding $250,000 we require the financial institution to collateralize with 110 percent government securities collateral. The City of La Verne will not accept 150 percent collateral (First Trust Deeds) or 105 percent Letters of Credit (LC). There is no limit as to the amount of the investment portfolio that may be deposited in certificates of deposit.
4. CALIFORNIA STATE, CALIFORNIA LOCAL GOVERNMENT AGENCIES, and other UNITED
STATES STATE BONDS
Government Code Sections 53601(c) through (e): Twenty percent (20%) of the City’s portfolio may be invested in this category having at the time of investment minimum “AA” or its rating equivalent or better by an NRSRO. This category includes:
▪ Registered state warrants or treasury notes or bonds of the State of California, 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 evidence of indebtedness of a local agency within the State of California, 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.
5. BANKERS ACCEPTANCES
Government Code Section 53601(g) are short-term credit arrangement to enable business to obtain funds to finance commercial transactions. They are time drafts drawn on a bank by an exporter or importer to obtain funds to pay for specific merchandise. By its acceptance, the bank becomes primarily liable for the payment of the draft at maturity. An acceptance is a high-grade negotiable instrument. Acceptances are purchased in various denominations for 30 to 270 days.
The City cannot purchase banker’s acceptances with a maturity longer than 180 days. The interest is calculated on 360-day discount basis similar to Treasury Bills. Local agencies cannot
Council Agenda Packet - October 7, 2024
Administrative Regulation No. 215, Investment Policy, page 8 invest more than 40 percent of their excess funds in banker’s acceptances and no more than 30 percent of the agency’s funds in any one commercial bank.
6.COMMERCIAL PAPER
Government Code Section 53601(h):
is short term unsecured promissory note issued by a corporation to raise working capital. These negotiable instruments may be purchased at a discount to par value or interest bearing.
Commercial paper is issued by corporations such as General Motors Acceptance Corporation (GMAC), Shearson-American Express, Bank of America, Wells Fargo Bank, etc.
Twenty-five percent (25%) of the City's portfolio may be invested in "Prime" commercial paper as rated by a nationally recognized statistical-rating organization (NRSRO). Issuing corporations must be organized and operating in the United States, have $500 million total assets, and have at least an "A1" rating by an NRSRO on debt other than commercial paper. No more than 10% of the portfolio may be invested in the commercial paper and medium-term notes of any single issuer. The maturity period cannot exceed 270 days.
7. NEGOTIABLE CERTIFICATES OF DEPOSIT
Government Code Section 53601(i): Thirty percent (30%) of the City's portfolio may be invested in Negotiable Certificates of Deposit issued by a nationally or state-chartered bank or a state or federal association or by a state-licensed branch of a foreign bank. These securities shall be rated in a ratings category of “A” or its equivalent or better by an NRSRO.
8. MEDIUM TERM CORPORATE NOTES
Government Code Section 53601(k) are unsecured promissory notes issued by a corporation operating in the United States. These are negotiable instruments and are actively traded in the secondary market. Medium Term Corporate Notes (MTN) can be defined as extended maturity commercial paper. Corporations use these MTNs to raise capital. Examples of MTN issuers are General Electric, GMAC, Citibank, Wells Fargo Bank, etc.
Defined as all corporate and depository institution debt securities with a maximum remaining maturity of five years or less (measured by settlement date), 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. Notes eligible for investment under this subdivision must be rated in a rating category of "A" or its equivalent or better by an NRSRO. No more than 10% of the portfolio may be invested in the commercial paper and medium-term notes of any single issuer. Up to 30% of the City's portfolio may be so invested.
9.LOCAL AGENCY INVESTMENT FUND (LAIF)
Government Code Section 16429.1: is a special fund in the California State Treasury, which local agencies may use to deposit funds for investment. There is no minimum investment period and the minimum transaction is $5,000, in multiples of $1,000 above that, with a maximum of $75 million (except for proceeds from bonds) for any agency. It offers high liquidity because deposits can be converted to cash in twenty-four hours and no interest is lost. All interest is distributed to those agencies participating on a proportionate share determined by amounts deposited and the
Council Agenda Packet - October 7, 2024
Administrative Regulation No. 215, Investment Policy, page 9 length of time they are deposited. Interest is paid quarterly via direct deposit to the LAIF account.
The State keeps an amount for reasonable cost of making the investments, not to exceed one- quarter of one percent of the earnings.
10. SECURED OBLIGATIONS
Government Code Section 53601 (m) & (n)N, are notes, bonds, or other obligations which are at all times secured by a valid first priority security interest in eligible securities pursuant to Section 53651. The securities serving as collateral shall be in the custody of a trust company or the trust department of a bank, which is not affiliated with the issuer of the secured obligations. Also included are mortgage pass-thru investments and collateralized mortgage obligation (CMO). The CMO is a cash flow bond in which mortgage payments from the underlying mortgage pools pay principal and interest to the CMO bondholder. Investments in secured obligations, et al, may not exceed 20 percent of the local agency’s excess funds.
11. MUTUAL FUNDS
Government Code Section 53601(l) are “shares of beneficial interest issued by diversified management companies.” in order to invest in a mutual fund, it must be restricted by its by-laws to the same investments as the Government Code allows local agencies. These investments include treasury debt obligations, banker’s acceptances, commercial paper, certificates of deposit, negotiable certificates of deposit, repurchase agreements, secured obligations, and medium term corporate notes. The quality rating and percentage restrictions in each investment category applicable to the local agency also applies to the mutual fund.
A further restriction is that the purchase price of the shares of the mutual funds shall not include any sales commission. Investments in mutual funds shall not exceed twenty percent of the local agency’s excess funds pursuant to this section and no more than ten percent may be invested in shares of beneficial interest of any one mutual fund.
12. MORTGAGE OR ASSET BACKED SECURITIES
Government Code Section 53601(o): Up to twenty percent (20%) of the City's portfolio may be invested in mortgage pass-through securities, collateralized mortgage obligations, mortgage- backed or other pay-through bonds, equipment lease-backed certificates, consumer receivable passthrough certificates, or consumer receivable-backed bonds. The 20% limit does not apply to securities issued by the US Government or any US Agency. Securities eligible for investment under this subdivision shall be rated in a rating category of “AA” or its equivalent or better by an NRSRO and have a maximum remaining maturity of five years or less measured on a weighted average life (WAL)basis.
13. JOINT POWERS AUTHORITY POOLS
Government Code Section 53601(p): 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 subdivisions 53601(a) to 53601(r), inclusive. Each share shall represent an equal proportional interest in the underlying pool of securities owned by the Joint Power’s Authority.
There is no maximum limit for JPA investments.
Council Agenda Packet - October 7, 2024
Administrative Regulation No. 215, Investment Policy, page 10
DUE DILIGENCE REQUIREMENT
The Finance Director shall make a thorough investigation of an investment pool or mutual fund prior to investing funds and on a continual basis. At a minimum, the following information shall be on file for each pool and/or mutual fund:
1. A description of eligible investment securities, and a written statement of investment policy and objectives.
2. A description of interest calculations, how interest 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, and the size of deposits and withdrawals.
5. A schedule for receiving statements and portfolio listings.
6. Whether reserves, retained earnings, etc. are utilized by the pool/fund.
7. A fee schedule, and when and how fees are assessed.
8. Whether the pool/fund is eligible for bond proceeds and/or will it accept such proceeds.
PROHIBITED INVESTMENTS
In compliance with Government Code Section 53631.5, the City of La Verne shall not invest in inverse floaters, range notes, or interest-only strips that are derived from a pool of mortgages. Additionally, the City shall not invest in any security that could result in zero interest accrual if held to maturity.
The City does not participate in any form of portfolio leverage, including but not limited to securities lending programs, reverse repurchase agreements and margin accounts.
DERIVATIVE INVESTMENTS
Derivatives are investments whose value is “derived” from or based upon the value of other assets or on the level of an interest rate index. The City of La Verne does not invest in derivative products.
LEGISLATIVE CHANGES
Any State of California legislative action that further restricts allowable maturities, investment types or percentage allocations will be incorporated into the City of La Verne Statement of Investment Policy and supersede any and all previous applicable language. If the City is holding
Council Agenda Packet - October 7, 2024
Administrative Regulation No. 215, Investment Policy, page 11 an investment that is subsequently prohibited by a legislative change, the City may hold that investment, if it is deemed prudent by the Investment Review Committee, until the maturity date to avoid an unnecessary loss.
CASH MANAGEMENT
In order to obtain a reasonable return on public funds, the following cash management practices will be followed:
1. Maintain maximum investment of all City funds not required to meet immediate cash flow needs.
2. Pool cash from all City administered funds for investment purposes with interest earnings allocated monthly, distributed quarterly based on the average cash balance of each fund at month end as a percentage of the entire pooled portfolio.
3. Maximize the City's cash flow through immediate deposit of all cash receipts, use of direct deposit when available, and appropriate timing of payment to vendors.
4. Maximize cash flow information available through the use of only one operating bank account.
_________________________________ __________________________ City Manager Date
Council Agenda Packet - October 7, 2024
NUMBER: 215 ISSUED: 07-1-2018
EFFECTIVE DATE: 10-7-20243 REVISED: 09-23-2024
SUBJECT: INVESTMENT POLICY Resolution 23-xx
PURPOSE
This statement is intended to provide guidelines for the prudent investment of the City of La Verne’s temporary idle cash and outline the policies for maximizing the efficiency of the cash management system. The ultimate goal is to enhance the economic status of the City while protecting its pooled cash.
SCOPE
Included in the scope of the City's investment policy are the following major guidelines and practices which are to be used in achieving the City's primary investment objectives:
▪ Investment Authority and Responsibilities
▪ Eligible Financial Institutions
▪ Authorized Investments
▪ Investment Maturities
▪ Cash Management
▪ Evaluation of Investment Performance
▪ Investment Reporting
▪ Investment Policy Review and Adoption
It is intended that this policy cover all funds and investment activities under the direct authority of the City. These funds are accounted for in the City's Annual Comprehensive Financial Report (ACFR) and include the general fund, special revenue funds, debt service funds, capital project funds, enterprise funds, internal service funds and agency funds. Funds excluded from this policy include proceeds of debt issuance, retirement/pension funds and deferred compensation funds, and pension or other post-employment benefit funds held in a trust.
OBJECTIVES
The City’s cash management system is designed to accurately monitor and forecast expenditures and revenues, thus enabling the City to invest funds to the fullest extent possible. The City attempts to obtain a market rate of return on funds as long as investments meet the criteria established for safety and liquidity.
Council Agenda Packet - October 7, 2024
City of La Verne Administrative Regulation
Administrative Regulation No. 215, Investment Policy, page 2
POLICY AND INVESTMENT PHILOSOPHY
The City of La Verne’s investment philosophy is to invest conservatively to minimize risk. Investments shall be made in the context of the Prudent Investor Rule for trustees of local government money, which is defined in Government Code Section 53600.3:
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 like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency.
The fundamental principles of the City’s philosophy are:
▪ Diversification of the portfolio by investment type or maturity; ▪ Quality standards for securities issuers;
▪ Limits on the maximum maturity of investments; and
▪ Passive investment strategy of purchasing investments with the intent to hold them until maturity.
Portfolio diversification in terms of maturity, instrument types and issuer helps to reduce the overall risk while obtaining an average market rate of return.
Therefore, the portfolio should consist of a mix of various types of securities, issuers and maturities. Occasional measured losses are inevitable and must be considered within the context of the overall portfolio's investment return, provided that adequate diversification has been implemented.
DELEGATION OF AUTHORITY
Investment authority and responsibility to invest or reinvest the funds of the City of La Verne is hereby delegated by the City Council to the Finance Director. The Finance Director is a trustee and a fiduciary subject to the prudent investor standard.
The City may retain the services of an outside investment advisor or manager as approved by the City Council to assist with the City’s investment program who shall make all investment decisions and transactions in strict accordance with State Law, this Policy and such other written instructions as are provided.
AUTHORIZED INVESTMENTS
Investments may be made in the following media:
Council Agenda Packet - October 7, 2024
Administrative Regulation No. 215, Investment Policy, page 3
1. Money Market Account
2. Passbook Savings Account
3. U. S. Treasury Issues
4. Federal Agency Securities
5. Certificates of Deposit
6. Negotiable Certificates of Deposits
7. Bankers Acceptances
8. Commercial Paper
9. Medium Term Corporate Notes
10. Repurchase Agreements
11. Local Agency Investment Fund (LAIF)
12. Los Angeles County Pooled Funds
13. Secured Obligations
14. Mutual Funds (including money market)
15. Joint Powers Authority Pools
Descriptions of these investments are listed in Appendix A.
Proceeds from bonds and other obligations of indebtedness that are held by a trustee or fiscal agent may be invested in any instruments as specified in the bond indenture, resolution or issuance agreement.
Criteria for selecting investments and the order of priority are:
1. Safety. The safety and risk associated with an investment refers to the potential loss of principal, interest or a combination of these amounts.
The City only operates in those investments that are considered very safe.
2. Liquidity. This refers to the ability to convert investments into cash or cash equivalents without significant loss of principal. Liquidity is an important investment quality especially when the need for unexpected funds occurs occasionally.
3. Yield. Yield is the potential dollar earnings an investment can provide, and sometimes is described as the rate of return. Yield should become a consideration only after the basic requirements of safety and liquidity have been met.
INTERNAL CONTROL
The Finance Department is responsible for ensuring compliance with the City's investment policy as well as for establishing systems of internal control designed to prevent loss due to fraud, employee error, misrepresentation by third parties, unanticipated changes in financial markets, or imprudent actions by city officers
Council Agenda Packet - October 7, 2024
Administrative Regulation No. 215, Investment Policy, page 4 and employees. Timely bank reconciliations are conducted to ensure proper handling of all transactions.
An independent analysis by an external auditor shall be conducted annually to review internal control and compliance with policies and procedures.
CONFLICTS OF INTEREST
The City adopts the following policy concerning conflicts of interest:
1. Officers and employees involved in the investment process shall not conduct personal business activity that could conflict with proper execution of the investment program, or which could impair their ability to make impartial investment decisions.
2. Officers and employees involved in the investment process shall disclose to the City Clerk any material financial interests in financial institutions that conduct business with the City of La Verne, and they shall further disclose any large personal financial/investment positions that could be related to the performance of the City's portfolio.
SAFEKEEPING
Securities purchased from brokers/dealers shall be held in third party safekeeping by the trust department of the local agency’s bank or other designated third-party trustee/agent in local agency’s name and control, whenever possible. All trades where applicable will be executed by delivery vs. payment (DVP). This ensures that securities are deposited in the eligible financial institution prior to the release of funds.
INVESTMENT OBJECTIVE
The cash management system of the City of La Verne is designed to:
▪ Safeguard and protect the principal of the funds in the City’s investment portfolio;
▪ Ensure that the City has adequate cash to pay budgeted expenditures and other operating costs by selecting maturities that reflect projected future;
▪ Achieve a return on the funds; and
▪ Comply with applicable law governing investment of governmental funds.
Council Agenda Packet - October 7, 2024
Administrative Regulation No. 215, Investment Policy, page 5
REPORTING
In accordance with Government Code Section 53646(b)(1), the Treasurer shall render a quarterly report to the City Council. The Treasurer’s report shall be submitted to the City Clerk’s office within 30 days following the end of the quarter covered by the report. The report on investments shall include the:
▪ Type of each investment,
▪ Issuer of each investment,
▪ Date of purchase and maturity of each investment,
▪ Par value and dollar amount invested on each security, investment and moneys held by local agency,
▪ Interest rate or yield on each investment,
▪ Current market value of the investment portfolio as of the date of the report and the source of the valuation.
In addition, the report on investments shall include a statement:
▪ As to whether the City’s investments comply with this Statement of Investment Policy, and if not, why not,
▪ Denoting the ability of the City to meet its expenditure requirement for the next six months.
The investment portfolio will be diversified to avoid incurring unreasonable and avoidable risks regarding specific security types or individual financial institutions.
The City may invest to the maximum limits with LAIF. Investments made through Broker/Dealers will be made through firms who are members of the New York Stock Exchange or regulated by either the Securities Exchange Commission or the National Association of Securities Dealers. In addition, investment advisors must have at least five years’ experience investing in the securities and obligations authorized under this policy and managing assets in excess of five hundred million dollars ($500,000,000).
No investment (except for those made from the proceeds of bonds) will be made in any security which at the time of the investment has a term remaining to maturity in excess of five years.
The City strives to maintain the level of investment of all funds as near 100 percent as possible through daily and projected cash flow determinations. Idle cash management and investment transactions are the responsibility of the City Treasurer and Finance Director.
The basic premise underlying the City’s investment philosophy is, and will continue to be, to ensure that money is always safe and available when needed.
Council Agenda Packet - October 7, 2024
Administrative Regulation No. 215, Investment Policy, page 6
DEPOSITS
Money must be deposited in a nationally or state-chartered commercial bank, savings bank, savings and loan association, or credit union in the state. It may be in inactive deposits, active deposits, or interest-bearing active deposits. The deposits cannot exceed the amount of the bank’s, savings and loan’s, or credit union’s paid up capital and surplus.
The bank or savings and loan must secure the active and inactive deposits with eligible securities having a market value of 110 percent of the total amount of the deposits. State law also allows, as an eligible security, first trust deeds having a value of 150 percent of the total amount of the deposits.
The Finance Director or Treasurer may at his/her discretion waive security for that portion of a deposit, which is insured pursuant to federal law. Currently, the first $250,000 of a deposit is federally insured. It is to the City of La Verne’s advantage to waive this collateral requirement for the first $250,000 because we receive a higher interest rate.
DEPOSITORY SERVICES
ACTIVE DEPOSITS are demand or checking accounts, which receive revenues and pay disbursements.
INTEREST-BEARING ACTIVE DEPOSITS are money market accounts at a financial institution (i.e., bank, savings and loan, credit union). These accounts are demand accounts (i.e., checking accounts) with restricted transaction activity.
INACTIVE DEPOSITS are certificates of deposits issued in any amount for periods of time as short as fourteen days and as long as several years. Interest must be calculated on a 360-day basis, actual number of days. At any given time, the City may have certificates of deposit in numerous financial institutions.
As a matter of policy, we do not invest in Certificate of Deposits (CDs) for longer than one year or invest through an outside CD broker.
We require that each financial institution submit current financial statements, which are evaluated by staff prior to the investment of funds. We use the following criteria:
1. The institution must have been in business at least four years.
2. The institution must have assets of at least $500 million and a net worth to asset value greater than 3.5 percent.
3. Investments in Credits Unions require an equity (net worth) to asset value of 5.0 percent.
PASSBOOK SAVINGS ACCOUNT is similar to an inactive deposit except not for a fixed term. The interest rate is generally lower than CDs, but the savings
Council Agenda Packet - October 7, 2024
Administrative Regulation No. 215, Investment Policy, page 7 account allows us flexibility. Funds can be deposited and withdrawn according to City needs.
INVESTMENT SECURITIES
Investment of City funds is governed by the California Government Code Sections 16429.1 and 53601. Investments may not have a term or maturity at the time of investment of longer than that authorized by Section 53601 or five years (measured by settlement date) unless the City Council has granted express authority, no less than three (3) months prior to the investment, for a specific investment to exceed such limit. It should be noted that while the Government Code specifies the maximum percentage of the portfolio which may be held in each type of investment at any one time, fluctuations in the portfolio balance will prevent strict adherence to such restrictions. Therefore, percentage limitations shall apply to investments at the time of purchase. The City will diversify its investments by security type and institution. Within the context of the State limitations, the following investments are authorized:
1. U.S. TREASURY OBLIGATIONS
Government Code Section 53601(b): are direct obligations of the United States Government. These issues are called bills, notes, and bonds. The maturity range of new issues is from thirteen weeks (T-bills) to thirty years (T-bonds).
These are highly liquid and are considered the safest investment security.
2. U.S. GOVERNMENT SECURITIES
Government Code Section 53601(f): are issued by direct U. S. Government agencies or quasi-government agencies. The United States Government guarantees these issues directly or indirectly. Examples of these securities are Federal Home Loan Bank (FHLB) notes, Federal National Mortgage Associations (FNMA) notes, Federal Farm Credit Bank (FFCB) notes, Federal Intermediate Credit Bank (FICB) debentures, Small Business Administration (SBA) notes, Government National Mortgage Association (GNMA) notes and Student Loan Association (SALLMAE) notes.
3. CERTIFICATES OF DEPOSIT
Government Code Section 53635 are investments for inactive funds issued by banks, savings and loans and credit unions. Investments of $250,000 are insured respectively by Federal Deposit Insurance Corporation (FDIC). Federal Savings and Loan Insurance Corporation (FSLIC) and the National Credit Union Share Insurance Fund (NCUSIF). Certificates of Deposit can be issued from fourteen days to several years in maturity allowing the City investment of funds to be matched to cash flow needs. For deposits exceeding $250,000 we require the financial institution to collateralize with 110 percent government securities collateral. The City of La Verne will not accept 150 percent collateral (First Trust Deeds) or 105 percent Letters of Credit (LC). There is no limit as to the amount of the investment portfolio that may be deposited in certificates of deposit.
Council Agenda Packet - October 7, 2024
Administrative Regulation No. 215, Investment Policy, page 8
4. CALIFORNIA STATE, CALIFORNIA LOCAL GOVERNMENT AGENCIES, and other UNITED STATES STATE BONDS
Government Code Sections 53601(c) through (e): Twenty percent (20%) of the City’s portfolio may be invested in this category having at the time of investment minimum “AA” or its rating equivalent or better by an NRSRO. This category includes:
▪ Registered state warrants or treasury notes or bonds of the State of California, 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 evidence of indebtedness of a local agency within the State of California, 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.
5. BANKERS ACCEPTANCES
Government Code Section 53601(g) are short-term credit arrangement to enable business to obtain funds to finance commercial transactions. They are time drafts drawn on a bank by an exporter or importer to obtain funds to pay for specific merchandise. By its acceptance, the bank becomes primarily liable for the payment of the draft at maturity. An acceptance is a high-grade negotiable instrument. Acceptances are purchased in various denominations for 30 to 270 days. The City cannot purchase banker’s acceptances with a maturity longer than 180 days. The interest is calculated on 360-day discount basis similar to Treasury Bills. Local agencies cannot invest more than 40 percent of their excess funds in banker’s acceptances and no more than 30 percent of the agency’s funds in any one commercial bank.
6.COMMERCIAL PAPER
Government Code Section 53601(h):
is short term unsecured promissory note issued by a corporation to raise working capital. These negotiable instruments may be purchased at a discount to par value or interest bearing. Commercial paper is issued by corporations such as General Motors Acceptance Corporation (GMAC), Shearson-American Express, Bank of America, Wells Fargo Bank, etc.
Twenty-five percent (25%) of the City's portfolio may be invested in "Prime" commercial paper as rated by a nationally recognized statistical-rating organization (NRSRO). Issuing corporations must be organized and operating in
Council Agenda Packet - October 7, 2024
Administrative Regulation No. 215, Investment Policy, page 9 the United States, have $500 million total assets, and have at least an "A1" rating by an NRSRO on debt other than commercial paper. No more than 10% of the portfolio may be invested in the commercial paper and medium-term notes of any single issuer. The maturity period cannot exceed 270 days.
7. NEGOTIABLE CERTIFICATES OF DEPOSIT
Government Code Section 53601(i): Thirty percent (30%) of the City's portfolio may be invested in Negotiable Certificates of Deposit issued by a nationally or state-chartered bank or a state or federal association or by a state-licensed branch of a foreign bank. These securities shall be rated in a ratings category of “A” or its equivalent or better by an NRSRO.
8. MEDIUM TERM CORPORATE NOTES
Government Code Section 53601(k) are unsecured promissory notes issued by a corporation operating in the United States. These are negotiable instruments and are actively traded in the secondary market. Medium Term Corporate Notes (MTN) can be defined as extended maturity commercial paper. Corporations use these MTNs to raise capital. Examples of MTN issuers are General Electric, GMAC, Citibank, Wells Fargo Bank, etc.
Defined as all corporate and depository institution debt securities with a maximum remaining maturity of five years or less (measured by settlement date), 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. Notes eligible for investment under this subdivision must be rated in a rating category of "A" or its equivalent or better by an NRSRO.
No more than 10% of the portfolio may be invested in the commercial paper and medium-term notes of any single issuer. Up to 30% of the City's portfolio may be so invested.
9.LOCAL AGENCY INVESTMENT FUND (LAIF)
Government Code Section 16429.1: is a special fund in the California State Treasury, which local agencies may use to deposit funds for investment. There is no minimum investment period and the minimum transaction is $5,000, in multiples of $1,000 above that, with a maximum of $75 million (except for proceeds from bonds) for any agency. It offers high liquidity because deposits can be converted to cash in twenty-four hours and no interest is lost. All interest is distributed to those agencies participating on a proportionate share determined by amounts deposited and the length of time they are deposited. Interest is paid quarterly via direct deposit to the LAIF account. The State keeps an amount for reasonable cost of making the investments, not to exceed one-quarter of one percent of the earnings.
10. SECURED OBLIGATIONS
Government Code Section 53601 (m) & (n)N, are notes, bonds, or other obligations which are at all times secured by a valid first priority security interest
Council Agenda Packet - October 7, 2024
Administrative Regulation No. 215, Investment Policy, page 10 in eligible securities pursuant to Section 53651. The securities serving as collateral shall be in the custody of a trust company or the trust department of a bank, which is not affiliated with the issuer of the secured obligations. Also included are mortgage pass-thru investments and collateralized mortgage obligation (CMO). The CMO is a cash flow bond in which mortgage payments from the underlying mortgage pools pay principal and interest to the CMO bondholder. Investments in secured obligations, et al, may not exceed 20 percent of the local agency’s excess funds.
11. MUTUAL FUNDS
Government Code Section 53601(l) are “shares of beneficial interest issued by diversified management companies.” in order to invest in a mutual fund, it must be restricted by its by-laws to the same investments as the Government Code allows local agencies. These investments include treasury debt obligations, banker’s acceptances, commercial paper, certificates of deposit, negotiable certificates of deposit, repurchase agreements, secured obligations, and medium term corporate notes. The quality rating and percentage restrictions in each investment category applicable to the local agency also applies to the mutual fund.
A further restriction is that the purchase price of the shares of the mutual funds shall not include any sales commission. Investments in mutual funds shall not exceed twenty percent of the local agency’s excess funds pursuant to this section and no more than ten percent may be invested in shares of beneficial interest of any one mutual fund.
12. MORTGAGE OR ASSET BACKED SECURITIES
Government Code Section 53601(o): Up to twenty percent (20%) of the City's portfolio may be invested in mortgage pass-through securities, collateralized mortgage obligations, mortgage-backed or other pay-through bonds, equipment lease-backed certificates, consumer receivable passthrough certificates, or consumer receivable-backed bonds. The 20% limit does not apply to securities issued by the US Government or any US Agency. Securities eligible for investment under this subdivision shall be rated in a rating category of “AA” or its equivalent or better by an NRSRO and have a maximum remaining maturity of five years or less measured on a weighted average life (WAL) basis.
13. JOINT POWERS AUTHORITY POOLS
Government Code Section 53601(p): 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 subdivisions 53601(a) to 53601(r), inclusive. Each share shall represent an equal proportional interest in the underlying pool of securities owned by the Joint Power’s Authority. There is no maximum limit for JPA investments.
Council Agenda Packet - October 7, 2024
Administrative Regulation No. 215, Investment Policy, page 11
DUE DILIGENCE REQUIREMENT
The Finance Director shall make a thorough investigation of an investment pool or mutual fund prior to investing funds and on a continual basis. At a minimum, the following information shall be on file for each pool and/or mutual fund:
1. A description of eligible investment securities, and a written statement of investment policy and objectives.
2. A description of interest calculations, how interest 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, and the size of deposits and withdrawals.
5. A schedule for receiving statements and portfolio listings.
6. Whether reserves, retained earnings, etc. are utilized by the pool/fund.
7. A fee schedule, and when and how fees are assessed.
8. Whether the pool/fund is eligible for bond proceeds and/or will it accept such proceeds.
PROHIBITED INVESTMENTS
In compliance with Government Code Section 53631.5, the City of La Verne shall not invest in inverse floaters, range notes, or interest-only strips that are derived from a pool of mortgages. Additionally, the City shall not invest in any security that could result in zero interest accrual if held to maturity.
The City does not participate in any form of portfolio leverage, including but not limited to securities lending programs, reverse repurchase agreements and margin accounts.
DERIVATIVE INVESTMENTS
Derivatives are investments whose value is “derived” from or based upon the value of other assets or on the level of an interest rate index. The City of La Verne does not invest in derivative products.
LEGISLATIVE CHANGES
Any State of California legislative action that further restricts allowable maturities, investment types or percentage allocations will be incorporated into the City of La Verne Statement of Investment Policy and supersede any and all previous applicable language. If the City is holding an investment that is subsequently prohibited by a legislative change, the City may hold that investment, if it is deemed prudent by the Investment Review Committee, until the maturity date to avoid an unnecessary loss.
CASH MANAGEMENT
In order to obtain a reasonable return on public funds, the following cash management practices will be followed:
1. Maintain maximum investment of all City funds not required to meet
Council Agenda Packet - October 7, 2024
Administrative Regulation No. 215, Investment Policy, page 12 immediate cash flow needs.
2. Pool cash from all City administered funds for investment purposes with interest earnings allocated monthly, distributed quarterly based on the average cash balance of each fund at month end as a percentage of the entire pooled portfolio.
3. Maximize the City's cash flow through immediate deposit of all cash receipts, use of direct deposit when available, and appropriate timing of payment to vendors.
4. Maximize cash flow information available through the use of only one operating bank account.
_________________________________ __________________________ City Manager Date
Council Agenda Packet - October 7, 2024
Resolution No. 24-xx 1 RESOLUTION NO. 24-xx
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA VERNE,
COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, ACKNOWLEDGING RECEIPT AND FILING OF THE CITY’S INVESTMENT POLICY FOR PUBLIC
FUNDS AND AUTHORIZING THE INVESTMENT OF MONIES IN THE
CALIFORNIA CLASS PRIME FUND.
WHEREAS, California Government Code Section 53601 et seq. sets forth the types of investments that are generally permitted to be utilized by local agencies to invest funds not needed for immediate needs; and,
WHEREAS, the development of an investment policy by each local agency is generally required by said section of the Government Code; and, WHEREAS, The California CLASS Prime Fund (Prime Fund) is an established Joint Powers Authority Pool authorized under Government Code section 53601(p) for the benefit of all public agencies in the State of California that have the authority to invest their treasury funds to preserve principal, provide daily liquidity, earn a competitive rate of return, and maintain a stable Net Asset Value; and,
WHEREAS, the City Council of the City of La Verne hereby finds that the deposit and withdrawal of money in the Prime Fund in accordance with Government Code section 53601(p) for the purpose of investment as provided therein expands diversification of the City’s investments and offers the opportunity to optimize interest earnings, while not sacrificing the liquidity of funds, a benefit to the City of La Verne; and,
WHEREAS, City staff has prepared an updated investment policy for consideration by the City Council that complies with the provisions of the California Government Code and recommends that the City Council adopt the same;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of La Verne as follows:
Section 1. That Investment Policy as described in Exhibit A, attached hereto and incorporated herein by reference as though fully set forth herein, is hereby adopted as the Investment Policy of the City of La Verne.
Section 2. That Resolution No. 23-67 is hereby rescinded.
Section 3. The City Council does hereby authorize the deposit and withdrawal of City of La Verne monies in the California CLASS Prime Fund in accordance with the provisions of Government Code section 53601(p) for the
Council Agenda Packet - October 7, 2024
City of La Verne
Investment Policy
October 2024
Resolution No. 24-xx 2 purpose of investment as stated therein.
Section 4. The following City of La Verne officers holding the title(s) specified or their successors in office shall be authorized to order the deposit or withdrawal of monies in the California CLASS Prime 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 contemplated hereby: City Manager, Assistant City Manager, Finance Director, Senior Accountant, and Senior Management Analyst.
Section 5. That the Mayor shall sign and the City Clerk shall certify to the passage and adoption of this Resolution and thereupon the same shall take effect and be in force.
PASSED, APPROVED AND ADOPTED this 7th day of October 2024. __________________________________
Mayor Tim Hepburn
ATTEST:
_________________________________
Debra Fritz, Deputy City Clerk
I hereby certify that the foregoing Resolution No. 24-xx was duly and regularly adopted by the City Council of the City of La Verne at a meeting thereof held on the 7th day of October, 2024, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
________________________________
Debra Fritz, Deputy City Clerk
Council Agenda Packet - October 7, 2024
City of La Verne
Investment Policy
October 2024
Resolution No. 24-xx 3 Exhibit A
CITY OF LA VERNE, CALIFORNIA
STATEMENT OF INVESTMENT POLICY
PURPOSE
This statement is intended to provide guidelines for the prudent investment of the City of La Verne’s temporary idle cash and outline the policies for maximizing the efficiency of the cash management system. The ultimate goal is to enhance the economic status of the City while protecting its pooled cash.
SCOPE
Included in the scope of the City's investment policy are the following major guidelines and practices which are to be used in achieving the City's primary investment objectives:
▪ Investment Authority and Responsibilities
▪ Eligible Financial Institutions
▪ Authorized Investments
▪ Investment Maturities
▪ Cash Management
▪ Evaluation of Investment Performance
▪ Investment Reporting
▪ Investment Policy Review and Adoption
It is intended that this policy cover all funds and investment activities under the direct authority of the City. These funds are accounted for in the City's Annual Comprehensive Financial Report (ACFR) and include the general fund, special revenue funds, debt service funds, capital project funds, enterprise funds, internal service funds and agency funds. Funds excluded from this policy include proceeds of debt issuance, retirement/pension funds and deferred compensation funds, and pension or other post-employment benefit funds held in a trust.
OBJECTIVES
The City’s cash management system is designed to accurately monitor and forecast expenditures and revenues, thus enabling the City to invest funds to the fullest extent possible.
The City attempts to obtain a market rate of return on funds as long as investments meet the criteria established for safety and liquidity.
Council Agenda Packet - October 7, 2024
City of La Verne
Investment Policy
October 2024
Resolution No. 24-xx 4
POLICY AND INVESTMENT PHILOSOPHY
The City of La Verne’s investment philosophy is to invest conservatively to minimize risk.
Investments shall be made in the context of the Prudent Investor Rule for trustees of local government money, which is defined in Government Code Section 53600.3:
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 like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency.
The fundamental principles of the City’s philosophy are:
▪ Diversification of the portfolio by investment type or maturity; ▪ Quality standards for securities issuers;
▪ Limits on the maximum maturity of investments; and
▪ Passive investment strategy of purchasing investments with the intent to hold them until maturity.
Portfolio diversification in terms of maturity, instrument types and issuer helps to reduce the overall risk while obtaining an average market rate of return. Therefore, the portfolio should consist of a mix of various types of securities, issuers and maturities. Occasional measured losses are inevitable and must be considered within the context of the overall portfolio's investment return, provided that adequate diversification has been implemented.
DELEGATION OF AUTHORITY
Investment authority and responsibility to invest or reinvest the funds of the City of La Verne is hereby delegated by the City Council to the Finance Director. The Finance Director is a trustee and a fiduciary subject to the prudent investor standard.
The City may retain the services of an outside investment advisor or manager as approved by the City Council to assist with the City’s investment program who shall make all investment decisions and transactions in strict accordance with State Law, this Policy and such other written instructions as are provided.
AUTHORIZED INVESTMENTS
Investments may be made in the following media:
1. Money Market Account
2. Passbook Savings Account
3. U. S. Treasury Issues
4. Federal Agency Securities
Council Agenda Packet - October 7, 2024
City of La Verne
Investment Policy
October 2024
Resolution No. 24-xx 5
5. Certificates of Deposit
6. Negotiable Certificates of Deposits
7. Bankers Acceptances
8. Commercial Paper
9. Medium Term Corporate Notes
10. Repurchase Agreements
11. Local Agency Investment Fund (LAIF)
12. Los Angeles County Pooled Funds
13. Secured Obligations
14. Mutual Funds (including money market)
15. Joint Powers Authority Pools
Descriptions of these investments are listed in Appendix A.
Proceeds from bonds and other obligations of indebtedness that are held by a trustee or fiscal agent may be invested in any instruments as specified in the bond indenture, resolution or issuance agreement.
Criteria for selecting investments and the order of priority are:
1. Safety. The safety and risk associated with an investment refers to the potential loss of principal, interest or a combination of these amounts. The City only operates in those investments that are considered very safe.
2. Liquidity. This refers to the ability to convert investments into cash or cash equivalents without significant loss of principal. Liquidity is an important investment quality especially when the need for unexpected funds occurs occasionally.
3. Yield. Yield is the potential dollar earnings an investment can provide, and sometimes is described as the rate of return. Yield should become a consideration only after the basic requirements of safety and liquidity have been met.
INTERNAL CONTROL
The Finance Department is responsible for ensuring compliance with the City's investment policy as well as for establishing systems of internal control designed to prevent loss due to fraud, employee error, misrepresentation by third parties, unanticipated changes in financial markets, or imprudent actions by city officers and employees. Timely bank reconciliations are conducted to ensure proper handling of all transactions.
An independent analysis by an external auditor shall be conducted annually to review internal control and compliance with policies and procedures.
CONFLICTS OF INTEREST
The City adopts the following policy concerning conflicts of interest:
Council Agenda Packet - October 7, 2024
City of La Verne
Investment Policy
October 2024
Resolution No. 24-xx 6
1. Officers and employees involved in the investment process shall not conduct personal business activity that could conflict with proper execution of the investment program, or which could impair their ability to make impartial investment decisions.
2. Officers and employees involved in the investment process shall disclose to the City Clerk any material financial interests in financial institutions that conduct business with the City of La Verne, and they shall further disclose any large personal financial/investment positions that could be related to the performance of the City's portfolio.
SAFEKEEPING
Securities purchased from brokers/dealers shall be held in third party safekeeping by the trust department of the local agency’s bank or other designated third-party trustee/agent in local agency’s name and control, whenever possible. All trades where applicable will be executed by delivery vs. payment (DVP). This ensures that securities are deposited in the eligible financial institution prior to the release of funds.
INVESTMENT OBJECTIVE
The cash management system of the City of La Verne is designed to:
▪ Safeguard and protect the principal of the funds in the City’s investment portfolio;
▪ Ensure that the City has adequate cash to pay budgeted expenditures and other operating costs by selecting maturities that reflect projected future; ▪ Achieve a return on the funds; and
▪ Comply with applicable law governing investment of governmental funds.
REPORTING
In accordance with Government Code Section 53646(b)(1), the Treasurer shall render a quarterly report to the City Council. The Treasurer’s report shall be submitted to the City Clerk’s office within 30 days following the end of the quarter covered by the report. The report on investments shall include the:
▪ Type of each investment,
▪ Issuer of each investment,
▪ Date of purchase and maturity of each investment,
▪ Par value and dollar amount invested on each security, investment and moneys held by local agency,
Council Agenda Packet - October 7, 2024
City of La Verne
Investment Policy
October 2024
Resolution No. 24-xx 7 ▪ Interest rate or yield on each investment,
▪ Current market value of the investment portfolio as of the date of the report and the source of the valuation.
In addition, the report on investments shall include a statement:
▪ As to whether the City’s investments comply with this Statement of Investment Policy, and if not, why not,
▪ Denoting the ability of the City to meet its expenditure requirement for the next six months.
The investment portfolio will be diversified to avoid incurring unreasonable and avoidable risks regarding specific security types or individual financial institutions. The City may invest to the maximum limits with LAIF. Investments made through Broker/Dealers will be made through firms who are members of the New York Stock Exchange or regulated by either the Securities Exchange Commission or the National Association of Securities Dealers. In addition, investment advisors must have at least five years’ experience investing in the securities and obligations authorized under this policy and managing assets in excess of five hundred million dollars ($500,000,000).
No investment (except for those made from the proceeds of bonds) will be made in any security which at the time of the investment has a term remaining to maturity in excess of five years.
The City strives to maintain the level of investment of all funds as near 100 percent as possible through daily and projected cash flow determinations. Idle cash management and investment transactions are the responsibility of the City Treasurer and Finance Director.
The basic premise underlying the City’s investment philosophy is, and will continue to be, to ensure that money is always safe and available when needed.
DEPOSITS
Money must be deposited in a nationally or state-chartered commercial bank, savings bank, savings and loan association, or credit union in the state. It may be in inactive deposits, active deposits, or interest-bearing active deposits. The deposits cannot exceed the amount of the bank’s, savings and loan’s, or credit union’s paid up capital and surplus.
The bank or savings and loan must secure the active and inactive deposits with eligible securities having a market value of 110 percent of the total amount of the deposits. State law also allows, as an eligible security, first trust deeds having a value of 150 percent of the total amount of the deposits.
The Finance Director or Treasurer may at his/her discretion waive security for that portion of a deposit, which is insured pursuant to federal law. Currently, the first $250,000 of a deposit is
Council Agenda Packet - October 7, 2024
City of La Verne
Investment Policy
October 2024
Resolution No. 24-xx 8 federally insured. It is to the City of La Verne’s advantage to waive this collateral requirement for the first $250,000 because we receive a higher interest rate.
DEPOSITORY SERVICES
ACTIVE DEPOSITS are demand or checking accounts, which receive revenues and pay disbursements.
INTEREST-BEARING ACTIVE DEPOSITS are money market accounts at a financial institution (i.e., bank, savings and loan, credit union). These accounts are demand accounts (i.e., checking accounts) with restricted transaction activity.
INACTIVE DEPOSITS are certificates of deposits issued in any amount for periods of time as short as fourteen days and as long as several years. Interest must be calculated on a 360-day basis, actual number of days. At any given time, the City may have certificates of deposit in numerous financial institutions. As a matter of policy, we do not invest in Certificate of Deposits (CDs) for longer than one year or invest through an outside CD broker.
We require that each financial institution submit current financial statements, which are evaluated by staff prior to the investment of funds. We use the following criteria:
1. The institution must have been in business at least four years.
2. The institution must have assets of at least $500 million and a net worth to asset value greater than 3.5 percent.
3. Investments in Credits Unions require an equity (net worth) to asset value of 5.0 percent.
PASSBOOK SAVINGS ACCOUNT is similar to an inactive deposit except not for a fixed term.
The interest rate is generally lower than CDs, but the savings account allows us flexibility.
Funds can be deposited and withdrawn according to City needs.
INVESTMENT SECURITIES
Investment of City funds is governed by the California Government Code Sections 16429.1 and 53601. Investments may not have a term or maturity at the time of investment of longer than that authorized by Section 53601 or five years (measured by settlement date) unless the City Council has granted express authority, no less than three (3) months prior to the investment, for a specific investment to exceed such limit. It should be noted that while the Government Code specifies the maximum percentage of the portfolio which may be held in each type of investment at any one time, fluctuations in the portfolio balance will prevent strict adherence to such restrictions. Therefore, percentage limitations shall apply to investments at the time of purchase. The City will diversify its investments by security type and institution.
Within the context of the State limitations, the following investments are authorized:
1. U.S. TREASURY OBLIGATIONS
Council Agenda Packet - October 7, 2024
City of La Verne
Investment Policy
October 2024
Resolution No. 24-xx 9 Government Code Section 53601(b): are direct obligations of the United States Government.
These issues are called bills, notes, and bonds. The maturity range of new issues is from thirteen weeks (T-bills) to thirty years (T-bonds). These are highly liquid and are considered the safest investment security.
2. U.S. GOVERNMENT SECURITIES
Government Code Section 53601(f): are issued by direct U. S. Government agencies or quasi- government agencies. The United States Government guarantees these issues directly or indirectly. Examples of these securities are Federal Home Loan Bank (FHLB) notes, Federal National Mortgage Associations (FNMA) notes, Federal Farm Credit Bank (FFCB) notes, Federal Intermediate Credit Bank (FICB) debentures, Small Business Administration (SBA) notes, Government National Mortgage Association (GNMA) notes and Student Loan Association (SALLMAE) notes.
3. CERTIFICATES OF DEPOSIT
Government Code Section 53635 are investments for inactive funds issued by banks, savings and loans and credit unions. Investments of $250,000 are insured respectively by Federal Deposit Insurance Corporation (FDIC). Federal Savings and Loan Insurance Corporation (FSLIC) and the National Credit Union Share Insurance Fund (NCUSIF). Certificates of Deposit can be issued from fourteen days to several years in maturity allowing the City investment of funds to be matched to cash flow needs. For deposits exceeding $250,000 we require the financial institution to collateralize with 110 percent government securities collateral. The City of La Verne will not accept 150 percent collateral (First Trust Deeds) or 105 percent Letters of Credit (LC). There is no limit as to the amount of the investment portfolio that may be deposited in certificates of deposit.
4. CALIFORNIA STATE, CALIFORNIA LOCAL GOVERNMENT AGENCIES, and other
UNITED STATES STATE BONDS
Government Code Sections 53601(c) through (e): Twenty percent (20%) of the City’s portfolio may be invested in this category having at the time of investment minimum “AA” or its rating equivalent or better by an NRSRO. This category includes:
▪ Registered state warrants or treasury notes or bonds of the State of California, 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 evidence of indebtedness of a local agency within the State of California, including bonds payable solely out of the revenues from a revenue-
Council Agenda Packet - October 7, 2024
City of La Verne
Investment Policy
October 2024
Resolution No. 24-xx 10 producing property owned, controlled, or operated by the local agency, or by a department, board, agency, or authority of the local agency.
5. BANKERS ACCEPTANCES
Government Code Section 53601(g) are short-term credit arrangement to enable business to obtain funds to finance commercial transactions. They are time drafts drawn on a bank by an exporter or importer to obtain funds to pay for specific merchandise. By its acceptance, the bank becomes primarily liable for the payment of the draft at maturity. An acceptance is a high-grade negotiable instrument. Acceptances are purchased in various denominations for 30 to 270 days. The City cannot purchase banker’s acceptances with a maturity longer than 180 days. The interest is calculated on 360-day discount basis similar to Treasury Bills. Local agencies cannot invest more than 40 percent of their excess funds in banker’s acceptances and no more than 30 percent of the agency’s funds in any one commercial bank.
6.COMMERCIAL PAPER
Government Code Section 53601(h):
is short term unsecured promissory note issued by a corporation to raise working capital.
These negotiable instruments may be purchased at a discount to par value or interest bearing.
Commercial paper is issued by corporations such as General Motors Acceptance Corporation (GMAC), Shearson-American Express, Bank of America, Wells Fargo Bank, etc.
Twenty-five percent (25%) of the City's portfolio may be invested in "Prime" commercial paper as rated by a nationally recognized statistical-rating organization (NRSRO). Issuing corporations must be organized and operating in the United States, have $500 million total assets, and have at least an "A1" rating by an NRSRO on debt other than commercial paper.
No more than 10% of the portfolio may be invested in the commercial paper and medium-term notes of any single issuer. The maturity period cannot exceed 270 days.
7. NEGOTIABLE CERTIFICATES OF DEPOSIT
Government Code Section 53601(i): Thirty percent (30%) of the City's portfolio may be invested in Negotiable Certificates of Deposit issued by a nationally or state-chartered bank or a state or federal association or by a state-licensed branch of a foreign bank. These securities shall be rated in a ratings category of “A” or its equivalent or better by an NRSRO.
8. MEDIUM TERM CORPORATE NOTES
Government Code Section 53601(k) are unsecured promissory notes issued by a corporation operating in the United States. These are negotiable instruments and are actively traded in the secondary market. Medium Term Corporate Notes (MTN) can be defined as extended maturity commercial paper. Corporations use these MTNs to raise capital. Examples of MTN issuers are General Electric, GMAC, Citibank, Wells Fargo Bank, etc.
Defined as all corporate and depository institution debt securities with a maximum remaining maturity of five years or less (measured by settlement date), issued by corporations organized
Council Agenda Packet - October 7, 2024
City of La Verne
Investment Policy
October 2024
Resolution No. 24-xx 11 and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States. Notes eligible for investment under this subdivision must be rated in a rating category of "A" or its equivalent or better by an NRSRO. No more than 10% of the portfolio may be invested in the commercial paper and medium-term notes of any single issuer. Up to 30% of the City's portfolio may be so invested.
9.LOCAL AGENCY INVESTMENT FUND (LAIF)
Government Code Section 16429.1: is a special fund in the California State Treasury, which local agencies may use to deposit funds for investment. There is no minimum investment period and the minimum transaction is $5,000, in multiples of $1,000 above that, with a maximum of $75 million (except for proceeds from bonds) for any agency. It offers high liquidity because deposits can be converted to cash in twenty-four hours and no interest is lost. All interest is distributed to those agencies participating on a proportionate share determined by amounts deposited and the length of time they are deposited. Interest is paid quarterly via direct deposit to the LAIF account. The State keeps an amount for reasonable cost of making the investments, not to exceed one-quarter of one percent of the earnings.
10. SECURED OBLIGATIONS
Government Code Section 53601 (m) & (n)N, are notes, bonds, or other obligations which are at all times secured by a valid first priority security interest in eligible securities pursuant to Section 53651. The securities serving as collateral shall be in the custody of a trust company or the trust department of a bank, which is not affiliated with the issuer of the secured obligations. Also included are mortgage pass-thru investments and collateralized mortgage obligation (CMO). The CMO is a cash flow bond in which mortgage payments from the underlying mortgage pools pay principal and interest to the CMO bondholder. Investments in secured obligations, et al, may not exceed 20 percent of the local agency’s excess funds.
11. MUTUAL FUNDS
Government Code Section 53601(l) are “shares of beneficial interest issued by diversified management companies.” in order to invest in a mutual fund, it must be restricted by its by- laws to the same investments as the Government Code allows local agencies. These investments include treasury debt obligations, banker’s acceptances, commercial paper, certificates of deposit, negotiable certificates of deposit, repurchase agreements, secured obligations, and medium term corporate notes. The quality rating and percentage restrictions in each investment category applicable to the local agency also applies to the mutual fund.
A further restriction is that the purchase price of the shares of the mutual funds shall not include any sales commission. Investments in mutual funds shall not exceed twenty percent of the local agency’s excess funds pursuant to this section and no more than ten percent may be invested in shares of beneficial interest of any one mutual fund.
12. MORTGAGE OR ASSET BACKED SECURITIES
Council Agenda Packet - October 7, 2024
City of La Verne
Investment Policy
October 2024
Resolution No. 24-xx 12 Government Code Section 53601(o): Up to twenty percent (20%) of the City's portfolio may be invested in mortgage pass-through securities, collateralized mortgage obligations, mortgage- backed or other pay-through bonds, equipment lease-backed certificates, consumer receivable passthrough certificates, or consumer receivable-backed bonds. The 20% limit does not apply to securities issued by the US Government or any US Agency. Securities eligible for investment under this subdivision shall be rated in a rating category of “AA” or its equivalent or better by an NRSRO and have a maximum remaining maturity of five years or less measured on a weighted average life (WAL)basis.
13. JOINT POWERS AUTHORITY POOLS
Government Code Section 53601(p): 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 subdivisions 53601(a) to 53601(r), inclusive. Each share shall represent an equal proportional interest in the underlying pool of securities owned by the Joint Power’s Authority.
There is no maximum limit for JPA investments.
DUE DILIGENCE REQUIREMENT
The Finance Director shall make a thorough investigation of an investment pool or mutual fund prior to investing funds and on a continual basis. At a minimum, the following information shall be on file for each pool and/or mutual fund:
1. A description of eligible investment securities, and a written statement of investment policy and objectives.
2. A description of interest calculations, how interest 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, and the size of deposits and withdrawals.
5. A schedule for receiving statements and portfolio listings.
6. Whether reserves, retained earnings, etc. are utilized by the pool/fund.
7. A fee schedule, and when and how fees are assessed.
8. Whether the pool/fund is eligible for bond proceeds and/or will it accept such proceeds.
Council Agenda Packet - October 7, 2024
City of La Verne
Investment Policy
October 2024
Resolution No. 24-xx 13
PROHIBITED INVESTMENTS
In compliance with Government Code Section 53631.5, the City of La Verne shall not invest in inverse floaters, range notes, or interest-only strips that are derived from a pool of mortgages. Additionally, the City shall not invest in any security that could result in zero interest accrual if held to maturity.
The City does not participate in any form of portfolio leverage, including but not limited to securities lending programs, reverse repurchase agreements and margin accounts.
DERIVATIVE INVESTMENTS
Derivatives are investments whose value is “derived” from or based upon the value of other assets or on the level of an interest rate index. The City of La Verne does not invest in derivative products.
LEGISLATIVE CHANGES
Any State of California legislative action that further restricts allowable maturities, investment types or percentage allocations will be incorporated into the City of La Verne Statement of Investment Policy and supersede any and all previous applicable language. If the City is holding an investment that is subsequently prohibited by a legislative change, the City may hold that investment, if it is deemed prudent by the Investment Review Committee, until the maturity date to avoid an unnecessary loss.
CASH MANAGEMENT
In order to obtain a reasonable return on public funds, the following cash management practices will be followed:
1. Maintain maximum investment of all City funds not required to meet immediate cash flow needs.
2. Pool cash from all City administered funds for investment purposes with interest earnings allocated monthly, distributed quarterly based on the average cash balance of each fund at month end as a percentage of the entire pooled portfolio.
3. Maximize the City's cash flow through immediate deposit of all cash receipts, use of direct deposit when available, and appropriate timing of payment to vendors.
4. Maximize cash flow information available through the use of only one operating bank account.
_________________________________ __________________________ City Manager Date
Council Agenda Packet - October 7, 2024
California CLASS Participant List March 2024
Counties
El Dorado County Lake County
Sonoma County Treasurer
Municipalities
City of Artesia City of Beaumont
City of Brentwood City of Farmersville
City of Folsom City of Fowler
City of Fullerton City of Hanford
City of Hemet City of Kingsburg
City of Lancaster City of Moreno Valley
City of Morgan Hill City of Oroville
City of Porterville City of Santa Ana
City of Shafter City of Wasco
City of Williams Town of Fort Jones
Town of Paradise
Other
California CLASS Enhanced Cash California Special Districts Association CSDA Finance Corporation League of California Cities
Public Agencies Self-Insurance System Sewer Authority Mid-Coastside Special District Leadership Foundation Special District Risk Management Authority Tri-County Water Authority
Special Districts
Alameda County Mosquito Abatement District Alpine Fire Protection District Altadena Library District Anderson Springs Community Service District Artesia Cemetery District Atwell Island Water District
Banning Library District Beaumont Library District
Bell Canyon Community Services District Bighorn - Desert View Water Agency Bolinas Fire Protection District Bonita Sunnyside Fire Protection District Cabazon Water District Camarillo Health Care District
Castroville Cemetery District Central Fire District of Santa Cruz County Channel Islands Beach Community Services Distict Chester Public Utility District Page No. 1
Council Agenda Packet - October 7, 2024
California
CL~S California : Coo:perative LiQuid Ass,ets Securities System California CLASS Participant List March 2024
Chico Area Recreation & Park District Chino Basin Water Conservation District Chino Basin Watermaster Clovis Veterans Memorial District Coachella Valley Resources Conversation District Coalinga - Huron Recreation & Parks District Coastside Fire Protection District Contra Costa Mosquito & Vector Control District Copper Valley Community Services District Corcoran Irrigation District Corning Healthcare District Costa Mesa Sanitary District Crescenta Valley Water District Del Puerto Health Care District Delano Mosquito Abatement District Desert Recreation District Durham Irrigation District East Orange County Water District Emerald Bay Service District Fallbrook Regional Health District Georgetown Divide P.U.D. Glenn County Resource Conservation District Gold Mountain Community Services District Goleta Sanitary District Groveland Community Services District Helendale Community Services District Herlong Public Utility District Hilmar County Water District Humboldt Bay Municipal Water District Humboldt Community Services District Idyllwild Water District Igo Ono Community Services District Indian Valley Community Services District Ironhouse Sanitary District Kensington Police Protection and Community Services
District
Kenwood Fire Protection District
Keyes Community Services District La Puente Valley County Water District Lakeside Fire Protection District Las Gallinas Valley Sanitary District Leucadia Wastewater District Livermore Area Recreation and Park District Los Alamos Cemetery District Madera Irrigation District Mariana Ranchos County Water District Marina Coast Water District Mark Twain Health Care District McKinleyville Community Services District Mendocino Coast Recreation and Park District Mendocino County Waterworks District II Mission Hills Community Services District Mojave Water Agency Murphy's Sanitary District North County Fire Protection District, San Diego County North Humboldt Recreation and Park District North of River Sanitary District No. 1 Oceano Community Services District Olympic Valley Public Service District Orange County Cemetery District Oxnard Harbor District
Palos Verdes Library District Paradise Irrigation District Paradise Recreation & Park District Phelan Pinon Hills Community Services District Pico Water District Pine Grove Community Service District Pleasant Valley County Water District Pleasant Valley Recreation and Park District Page No. 2
Council Agenda Packet - October 7, 2024
California
CL~S California : Coo:perative LiQuid Ass,ets Securities System California CLASS Participant List March 2024
Rainbow Municipal Water District Rancho Murieta Community Services District Rancho Santa Fe Fire Protection District Reclamation District No. 1000 Resource Conservation District of Greater San Diego
County
Rim of the World Recreation and Park District
San Antonio Basin Water District San Diego County Citrus Pest Control District San Gabriel Valley Mosquito and Vector Control District San Mateo County Mosquito and Vector Control District San Miguel Consolidated Fire Protection District San Simeon Community Services District Santa Cruz Port District Santa Maria Public Airport District Santa Ynez River Water Conservation District Sierra Resource Conservation District South Placer M.U.D. Stockton East Water District
Tahoe - Truckee Sanitation Agency Tahoe City Public Utility District Temecula Public Cemetery District Templeton Community Services District Town of Discovery Bay - Community Services District Trabuco Canyon Water District Tracy Rural County Fire Protection District Truckee Donner Recreation and Park District Truckee Sanitary District Truckee Tahoe Airport District Turner Island Water District Twentynine Palms Water District Union Public Utility District Vandenberg Village Community Services District Ventura River Water District Vista Fire Protection District Wallace Community Services District Weott Community Services District West Basin Municipal Water District West County Wastewater District Western Shasta Resource Conservation District Williams Fire Protection Authority Yuima Municipal Water District
Total Participants: 160
Disclaimer: This participant list is being made public as a service to our participant base. The listed participants are active as of the end of the month.
Page No. 3
Council Agenda Packet - October 7, 2024
California
CL~S California : Cooperative LiQuid Ass,ets Securities System
Council Agenda Packet - October 7, 2024
California
CL~S California Cooperative liquid Assets Securities System California Cooperative Liquid Assets Securities System (California CLASS) is a joint exercise of powers entity authorized under Section 6509.7, California Government Code. Ca I ifornia CLASS is a pooled investment option that was created via a joint exercise of powers agreement by and among California public agencies.
California CLASS offers public agencies a convenient method for investing in highly liquid, investment-grade securities carefully selected with the goal of optimizing yields while prioritizing safety and liquidity. The California CLASS Prime and Enhanced Cash funds help assist public agencies in strengthening and diversifying their cash management programs in accordance with the safety, liquidity, and yield hierarchy that provides the framework for the investment of public funds.
How· is it t;1overned and manat;1ed?
California CLASS is verseen and governed by a Board of
Trustees. The Board is made up of public agency finance professionals who participate in California CLASS and are members of the Joint Powers Authority (JPA). The Board of Trustees has entered into an Investment Advisor and
Administrator Agreement with Public Trust Advisors, LLC. Public Trust is responsible to the Board for all program investment and administrative activities as well as many of the services provided on behalf of the Participants.
How can we participate?
Enrolling in California CLASS is simple. Public agencies may become Participants simply by filling out the Participant Registration Form that can be found in the document center on the California CLASS website. Public agencies may submit the completed registration packet to California CLASS Client Services for processing at clientservices®californiaclass.com To obtain account forms and fund documents, visit
www.californfaclass.com/document-center/ .
Sponsored By:
LEAGUE OF
CALIFORNIA
CITIES
California Special
Dislri cts Association
www.calcltles.org www.csda.net
,CALIFORNIA CLASS FEATURES
As a taUfornia CLASS Participant
you have access to many
convenient features:
• Same-day availability o'f funds in Prime
Fund (11:00 a.m.. PT cut-off)
• Contributions by wlre or ACH
• Ratings of 1AAAm1 & 1AAAf/S11
, Portfolio securities
mar~ed-to-market daily
• Secure online access for transactions
and account statements
.. No redemption notices for Prime Fund
.. Participant-to-Parth;lpant transactions
, Dividends accrue daily and pay monthly
~ No maximum or minimum transaction
nmits
• No maximum or minimum ,Investment
requirements
• No transaction fees*
,. Annual audit conducted by Independent
auditing firm**
• Dedicated client service representatives
available via phone or email on any
business day
•You may incur fees us.soclated with wires and/or ACH
transadions by your bank, but there will be no transaction fees charged from callfornla CLASS tor such transactions.
"""External ;;1udits mi;iy not t~dl all insti;1nces of ac:tountinQ errors and do not provide an absolute guarantee a1 accuracy.
T (877) 930-5213 I F (877) 930-5214 I www.californiaclass.com I [email protected]
Council Agenda Packet - October 7, 2024
What are the objectives of California CLASS?
Safety
The primary investment objective of the California
CLASS Prime Fund is preservation of principal. Both
California CLASS portfolios are mana(Jed by a team of
investment professionals who are solely focused on the
management of public funds nationwide. The custodian
for California CLASS is U.S. Bankr N.A.
Llquld(ty
When you invest in the California CLASS Prime Fund,
you have access to your funds on any business day. You
must notify California CLASS of your funds transaction
requests by 11:00 a.m. PT via the online transaction
portal. There a re no redemption notices for the
daily-liquid California CLASS Prime Fund. The California CLASS Enhanced Cash Fund is a variable NAV fund that
provides next-day liquidity and requires a one-day
notification of redemption.
Competitive Returns
California CLASS strives to provide competitive yields
while adhering to the objectives of safety and liquidity.
Participants caI1 benefit from the investment expertise and institutional knowledge provided by the team of
Public Trust professionals. The portfolio performance
objective is strengthened by the knowledge of
California public agency cash flows that the Public Trust team possesses.
Ease of Use
To make cash management streamlined and efficient.
California CLASS includes many features that make it
easv to access account Jnformatron and sJmpllfy record
keeping. Participants can transact on any business day
via the California CLASS Online Transaction Portal at
www.ca I if orniaclass.com.
Flexibility
You may establish multiple California CLASS
subaccounts. You will receive comprehensive monthly
statements that show all of your transaction activityr
dividend accruals. and yield summaries. These
statements have been specifically designed to facilitate public sector fund accounting and to establish a clear
accounting and audit trail for your records.
LeQaHty
California CLASS only invests in securities permitted by California State Code Section 53601; permitted
investments are further restricted to those approved by the Board of Trustees as set forth in the California
CLASS Investment Policies.
Have Questions? Contact us or visit www.californiaclass.com for more information.
Bob Shull
Senior Director. Investment Services
[email protected]
(925) 872-1007
Crystal Lynn
Director. Investment Services
[email protected]
(949) 701-5400
Jerry LeQQ
Senior Director. Investment Services
[email protected]
(916) 221-7833
Any flna.r.cl11I l!nd/or Investment declslan shauld be made anly after canslder111ble research. conslderatk,n, and Involvement with an experienced professlan11I engaged rar the spedflc purpose.. The tnform1tlon pr•enhld shookt not be ustKi In miking any tnvestment dedslol\5. This m1terf1I Is not ill racommendatlon to buy, sell, Implement, or cMn11e .iny ai;uritles or investment st111hlgy, function, er process. fllease review the ca11rornIa CLASS lnrormatlon Statement(s) before lnvastfrq. caI1romla CLASS Is not a ban)l. An Investment In canromra CLASS rs not Insured or guaranteed by tha Federal Deposit Insurance CGrparatlon or any other qovemment aoencv. Although the ca111orn1a CLASS Prime runct seeks to preserve the value of your Investment at $1.00 per shara, It cannot guarantee It wlll do so. Please review the C.llfcrnia CLASS lnformatlan Sbdement(!li) before Investing. Past perfurmance Is nat an lnd\Qltlan of future performance.. No assul"l!lnce 1:11n be given that the perfarmsnce obJedives or a Qlven .strategy wTII be achieved. 141W flnand1I and/or Investment dec!s!on may Incur losses. The Calll'om!a CLASS Prlln9 Fund ls r.rted 'AAAm' by S&P Globll R.itin11s. A 'AAAm' r1tlng by S&P Global Ratfng$ Is obtained after S&P evaluate& a number of factors lncludln11 credit quality, market pr1te expo&urs, and management. F'Dr a full description on rating malt1odology, please visit www.spglobaLc:om. The ca1Homla CLASS Enhanced cash Fund Is rated by 'AAAf/Sl' bV FltchRatlngs. The 'AAAf' ratlnq rs Fltc:h'.s opinion on the overall credit pron~ Within a !'!Xed-lncome rund/portrollo and Indicates the highest underlying credit qu11llly of the poal's investments. The 'Sl' valatlllty rating 11 Fltch's oplnlan an the relative sensftMly of a partfolla'I total rel-urn 11nd/Dr net mset value to 1ssumed chanoes 1n credit sprNds and tnterest rites, Tne '51' volatlllty nit!nc:, lndfe1tes that tne fund possesses I low sensltMty to m1111wt risks. For ,1 ful I description an r1tlng methodolo;v, plNsar visit www.fltchratln &.coin. Ratln s are su to cnan e and do not remove credit rfsk.
T (877) 930-5213 IF (877) 930-5214 I www.californiaclass.com I [email protected]
Council Agenda Packet - October 7, 2024
California
CL~S
I A JOINT POWERS AUTHORITY INVESTMENT POOL -
Client-First & User-Friendly Cash Management Solutions Designed for California Public Agencies of All Sizes
CaUfornia CLASS provides
Participants the following benefits:
.,,/' Convenient, modern transaction
portal
✓ Dedicated client service team equally
committed to all California public
agencies
✓- Portfolios managed in accordance
with California Government Code
✓ Transparent governance by Board of
Trustees
- ✓ Portfolios marked-to-market with
net asset value and yields posted to
website daily
-
Fund Option
Portfolio Type
Purpose
Rating
Min/Max
Investment
Withdrawals
Investment Horizon
Liquidity
WAM
Net Asset Value
(NAV)
Prime Enhanced Cash
Prime-style fund Enhanced cash
Operating Funds Strategic Reserves
1 AAAm
1 'AAAf/S1
1 None None
Unlimited Unlimited
Day-to-Day 12-18 Months
Same-Day Next-Day
:S6O days 90-200 days
Stable $1.00 Variable $10.00
per share per share
Learn more about building an optimal liquidity portfolio for your public agency; contact us today.
Bob Shull
Senior Director, Investment Services
[email protected]
(925) 872-1007
Crystal Lynn
Director, Investment Services
[email protected]
(949) 701-5400
Jerry Legg
Senior Director, Investment Services
[email protected]
(916) 221-7833
Many factors affect performance including changes in market conditions and interest rates and in response to other economic, political, or financial developments. Investment involves risk including the possible loss of principal. No assurance can be given that the performance objectives of a given strategy will be achieved. The information presented should not be used in making any investment decisions. This material is not a recommendation to buy, sell, implement. or change any securities or investment strategy, function, or process. Any financial and/or investment decision should be made only after considerable research, consideration, and involvement with an experienced professional engaged for the specific purpose. California CLASS is not a bank. An investment in California CLASS is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the California CLASS prime-style fund seeks to preserve the value of your Investment at $1.00 per share, It cannot guarantee It will do so.
Please review the California CLASS Information Statement before investing. California CLASS is rated 'AAAm' by S&P Global Ratings. A 'AAAm' rating by S&P Global Ratings is obtained after S&P evaluates a number of factors including credit quality, market price exposure, and management. For a full description on rating methodology, please visit www.spglobal.com. California CLASS Enhanced Cash is rated 'AAAf/Sl' by FitchRatings. The 'AAAf' rating is Fitch's opinion on the overall credit profile within a fixed-income fund/portfolio and indicates the highest underlying credit quality of the pool's investments. The 'Sl' volatility rating is Fitch's opinion on the relative sensitivity of a portfolio's total return and/or net asset value to assumed changes in credit spreads and interest rates. The 'Sl' volatility rating indicates that the fund possesses a low sensitivity to market risks. For a full description on rating methodology, please visit www.fitchratings.com. Ratings are subject to change and do not remove credit risk. For risks associated with investing in both a prime-style and enhanced cash-style local government investment pool, please visit www.californiaclass.com/rates-disclaimer. Past performance is no guarantee of future results. Any financial and/or investment decision may incur losses.