Agenda packet, regular meeting — Laguna Hills City Council, November 14, 2023

CITY OF LAGUNA HILLS

CITY COUNCIL/PLANNING AGENCY

REGULAR MEETING AGENDA
Tuesday, November 14, 2023 – 7:00 PM
(Closed Session at 6:00 PM when scheduled)
Janine Heft, Mayor
Dave Wheeler, Mayor Pro Tempore Don Caskey, Council Member Erica Pezold, Council Member Joshua Sweeney, Council Member Location: City Council Chamber, 24035 El Toro Road, Laguna Hills, CA 92653 In Person Public Comments: Any person wishing to address the City Council/Planning Agency on any matter, whether or not it appears on this Agenda, is asked to complete a pink “Request to Speak” form available on the table at the back of the Chamber and submit the form to the City Clerk. The Request to Speak form assists the Mayor in ensuring that all persons wishing to address the City Council are recognized and ensures accurate identification of meeting participants in the City Council/Planning Agency Minutes. Completion of the form is voluntary.

It is City policy to limit public testimony to up to three minutes per person, an overall time limit of ten minutes for any one subject, and a total time limit of thirty minutes for Public Comments.

If you are commenting on an Agenda item, your comments will be heard at the time that item is scheduled on the Agenda. If you are addressing the City Council on an item not listed on the Agenda, the City Council is prohibited by law from discussing or taking any action on that item Submission of Electronic Public Comments: Those wishing to make electronic public comments may submit their comments by email to the City Clerk at [email protected], by 5:00 p.m. on Tuesday, November 14, 2023. In the subject line of the email, please state your name and the item number you are commenting on. Any public comment received that does not specify a particular agenda item number will be announced during the general public comment portion of the agenda. All comments received by 5:00 p.m. on the date of the meeting will be provided to the City Council and will be provided for public inspection at the meeting. During the applicable agenda item, the City Clerk will announce the name of the sender and subject matter of all electronic comments received by 5:00 p.m. on Tuesday, November 14, 2023. Email comments will NOT be read by the City Clerk during the meeting.

Electronic public comments may only be submitted via email and comments via text and social media (Facebook, X (formerly Twitter), etc.) will not be accepted.

Please note: The City Council is making every effort to follow the spirit and intent of the Brown Act and other applicable laws regulating the conduct of public meetings in order to maximize transparency and public access. For questions or assistance, please contact the City Clerk’s Office at (949) 707-2635 or via email at [email protected].

City of Laguna Hills City Council/Planning Agency Tuesday, November 14, 2023 Regular Meeting Agenda
2 GENERAL BUSINESS - CONVENING AT 7:00 PM

CALL TO ORDER
Resolution No. 96-04-09-1 established rules of decorum for public meetings held by the City of Laguna Hills. Resolution No. 96-04-09-1 is available on the table at the back of the City Council Chamber.

INVOCATION: Chaplain Jim Davis of the Orange County Sheriff's Department PLEDGE OF ALLEGIANCE: Council Member Sweeney

ROLL CALL OF CITY COUNCIL MEMBERS

1. PRESENTATIONS AND PROCLAMATIONS

1.1 Valencia Elementary School Student Liaison Report
Recommendation: That the City Council present Certificates of Appointment and receive a report from Valencia Elementary School Student Liaisons Arjun Nanda and Christopher Karsaz.

1.2 Laguna Hills High School Student Liaison Report
Recommendation: That the City Council receive an oral report from Laguna Hills High School 2023 Fall Student Liaison Evan Figueroa.

2. SCHEDULE OF FUTURE EVENTS

2.1 Schedule of Future Events
Recommendation: That the City Clerk announce the upcoming meetings and events.

3. PUBLIC COMMENTS
This is the time to address the City Council on any matter not listed on this Agenda that is within the subject matter jurisdiction of the City Council. Public Comments are limited to three minutes per person, an overall time limit of ten minutes for any one subject, and a total time limit of thirty minutes.

City of Laguna Hills City Council/Planning Agency Tuesday, November 14, 2023 Regular Meeting Agenda
3 4. CONSENT CALENDAR
All matters listed under “CONSENT CALENDAR” are considered to be routine and will be enacted by one motion approving the recommendation listed on the Agenda. There will be no separate discussion unless Members of the City Council or Staff request specific items be removed from the Consent Calendar.

4.1 Waive Reading in Full of all Ordinances and Resolutions on the Agenda Recommendation: That the City Council waive reading in full of all ordinances and resolutions on the agenda and declare that said titles which appear on the public agenda shall be determined to have been read by title and further reading waived.

4.2 Approval of Minutes for October 24, 2023, Regular Meeting Recommendation: That the City Council approve the City Council/Planning Agency Minutes for the October 24, 2023, Regular Meeting.

4.3 Ratification of November 14, 2023, Warrant Register Recommendation: That the City Council ratify the accompanying Warrant Register for the period from October 13, 2023, to November 2, 2023, in the amount of $466,752.91.

4.4 Annual Review of Investment & Portfolio Policies and Delegation of Investment Authority to the City Treasurer
Recommendation: That the City Council adopt a Resolution entitled: "A Resolution of the City Council of the City of Laguna Hills, California, delegating investment authority to the City Treasurer and approving a policy for the investment of surplus City funds and rescinding Resolution No. 2022-12-13-7."

4.5 Measure M2 Expenditure Report to the Orange County Transportation Authority for the Fiscal Year Ended June 30, 2023
Recommendation: That the City Council: 1) Approve the M2 Expenditure Report for the fiscal year ended June 30, 2023, for submittal to the Orange County Transportation Authority; and 2) Adopt a Resolution entitled: "A Resolution of the City Council of the City of Laguna Hills, California, concerning the Measure M2 (M2) Expenditure Report for the City of Laguna Hills for the fiscal year ended June 30, 2023."
City of Laguna Hills City Council/Planning Agency Tuesday, November 14, 2023 Regular Meeting Agenda
4 4.6 OCTA Regional Traffic Signal Synchronization Project: Paseo De Valencia - Moulton Parkway Confluence Bypass Corridor
Recommendation: That the City Council adopt a Resolution entitled: "A

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAGUNA HILLS, CALIFORNIA,

APPROVING THE SUBMITTAL OF A GRANT APPLICATION TO THE ORANGE

COUNTY TRANSPORTATION AUTHORITY FOR FUNDING UNDER THE
COMPREHENSIVE TRANSPORTATION FUNDING PROGRAMS.”

ITEMS REMOVED FROM THE CONSENT CALENDAR

5. PLANNING AGENCY

6. CITY COUNCIL PUBLIC HEARINGS

7. ADMINISTRATIVE REPORTS

7.1. City Manager

7.2. City Attorney

7.2.1 Consideration of Compensation for City Manager
Recommendation: That the City Council take such action as it so determines, following the completion of the annual performance evaluation of the City Manager.

7.3. Public Works Director/City Engineer

7.3.1 Addition of Quimby Funds to CIP 241, General Park Improvements Recommendation: That the City Council: 1) Authorize the Finance Director to amend the fiscal year 2023/2024 budget by appropriating $2,053,640.48 in Quimby Act Park In-Lieu funds toward Capital Improvement Project No. 241 (General Park Renovations); and 2) Approve the park prioritization list for improvements.

8. MATTERS AGENDIZED AND PRESENTED BY CITY COUNCIL MEMBERS

8.1 Proposed Monument Memorializing Lewis and Nellie Gail Moulton Recommendation: Mayor Heft recommends that the City Council discuss a permanent monument memorializing Lewis and Nellie Gail Moulton.

City of Laguna Hills City Council/Planning Agency Tuesday, November 14, 2023 Regular Meeting Agenda
5 9. CITY COUNCIL MEMBER COMMITTEE REPORTS

9.1 Committee Assignment Reports
Recommendation: That the City Council receive reports from City Council Members on the City Council Committee Assignments listed in the staff report.

10. CITY COUNCIL MEMBER COMMENTS

ADJOURNMENT
The next Regular Meeting of the City Council/Planning Agency will be November 28, 2023, at 7:00 p.m., in the City Council Chamber, located at 24035 El Toro Road, Laguna Hills, California.

CERTIFICATION
I, JENNIFER LEE, City Clerk of the City of Laguna Hills, do hereby certify that a copy of the foregoing Agenda was posted at Laguna Hills City Hall, Laguna Hills Community Center, and the Courtyard at La Paz Center by November 9, 2023, at 5:00 p.m.

November 9, 2023
Jennifer Lee, City Clerk Date
It is the intention of the City of Laguna Hills to comply with the Americans with Disabilities Act in all respects. If as an attendee or a participant at this meeting you will need special assistance beyond what is normally provided, the City of Laguna Hills will attempt to accommodate you in every reasonable manner. Please contact the office of the City Clerk at (949) 707-2635. Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to assure accessibility to this meeting.

Materials related to an item on this Agenda submitted to the City Council after distribution of the agenda packet are available for public inspection in the City Clerk’s Office at 24035 El Toro Road, Laguna Hills, California, during normal business hours. In addition, such writings or documents will be made available for public review on the City’s website at: https://www.lagunahillsca.gov/supplementalagenda and at the respective public meeting.

City Council Members receive no additional compensation or stipend as a result of simultaneously convening meetings of the Laguna Hills Planning Agency.

City of Laguna Hills
City Council/Planning Agency
Staff Report
DATE: November 14, 2023
TO: Mayor and Council Members
FROM: Jennifer Lee
City Clerk
ISSUE: Schedule of Future Events
RECOMMENDATION: That the City Clerk announce the upcoming meetings and events.

SUMMARY:

City Council/Planning Agency Regular Meetings
Tuesday, November 28, 7:00pm, Laguna Hills Civic Center Council Chamber Tuesday, December 12, 7:00pm, Laguna Hills Civic Center Council Chamber Traffic Commission Regular Meeting
Wednesday, November 15, 7:00pm, Laguna Hills Civic Center Council Chamber Events, Communication, and Beautification Committee Regular Meeting Monday, November 20, 11:00am, Civic Center Admin Conference Room City Closure for the Thanksgiving Holiday
Both City Hall and the Community Center will be closed for Thanksgiving from Thursday, November 23, to Friday, November 24.

Holiday Event Series- Tree Lighting Ceremony
Saturday, December 2, 6:00-8:00pm, Laguna Hills Community Center and Sports Complex Parks & Recreation Commission Regular Meeting
Wednesday, December 6, 7:00pm, Laguna Hills Civic Center Council Chamber Holiday Event Series- An Evening of Holiday Music
Friday, December 8, 7:00-9:00pm, Laguna Hills Community Center and Sports Complex

2.1 Packet Pg. 6
Schedule of Future Events
November 14, 2023

Page 2 ends

Breakfast with Santa
Saturday, December 9, 9:00-11:00am, Laguna Hills Community Center and Sports Complex Parent’s Night Out
Friday, December 15, 6:00-8:30pm, Laguna Hills Community Center and Sports Complex Holiday Event Series-Holiday Dance Extravaganza
Saturday, December 16, 7:00-9:00pm, Laguna Hills Community Center and Sports Complex

2.1 Packet Pg. 7
City of Laguna Hills
City Council/Planning Agency
Staff Report
DATE: November 14, 2023
TO: Mayor and Council Members
FROM: Jennifer Lee
City Clerk
ISSUE: Approval of Minutes for October 24, 2023, Regular Meeting RECOMMENDATION: That the City Council approve the City Council/Planning Agency Minutes for the October 24, 2023, Regular Meeting.

ATTACHMENTS:
• City Council/Planning Agency Minutes for the October 24, 2023, Regular Meeting

4.2 Packet Pg. 8

CITY OF LAGUNA HILLS

CITY COUNCIL/PLANNING AGENCY

REGULAR MEETING

MINUTES
Tuesday, October 24, 2023
CLOSED SESSION - CONVENING AT 6:00 PM

CALL TO ORDER
The meeting was called to order at 6:00 p.m. by Mayor Heft.

ROLL CALL OF CITY COUNCIL MEMBERS
Attendee Name Title Status Arrived
Janine Heft Mayor Present
Dave Wheeler Mayor Pro Tempore Present
Don Caskey Council Member Present
Erica Pezold Council Member Present
Joshua Sweeney Council Member Present

ANNOUNCEMENT OF CLOSED SESSION ITEM(S)
A. PUBLIC EMPLOYEE PERFORMANCE EVALUATION
Pursuant to Government Code Section 54957(b)(1)
Public Employee Title: City Manager - Annual Performance Review

PUBLIC COMMENT ON CLOSED SESSION ITEM(S)
There were no public comments on the closed session item.

ADJOURN TO CITY COUNCIL CONFERENCE ROOM OR CITY COUNCIL CHAMBER

CONVENE INTO CLOSED SESSION
The City Council convened into closed session to consider the matter(s) listed above.

RECONVENE TO CITY COUNCIL CHAMBER
RECESS

4.2.a
Packet Pg. 9
Attachment: City Council/Planning Agency Minutes for the October 24, 2023, Regular Meeting (3344 : Approval of Minutes for October 24, 2023, City of Laguna Hills City Council/Planning Agency Tuesday, October 24, 2023 Regular Meeting Minutes
2 GENERAL BUSINESS - CONVENING AT 7:00 PM

CALL TO ORDER
The meeting was called to order at 7:00 p.m. by Mayor Heft.

INVOCATION: Council Member Sweeney
PLEDGE OF ALLEGIANCE: Council Member Pezold

CLOSED SESSION REPORT
A. PUBLIC EMPLOYEE PERFORMANCE EVALUATION
Pursuant to Government Code Section 54957(b)(1)
Public Employee Title: City Manager - Annual Performance Review City Attorney Simonian stated that the City Council convened into closed session pursuant to the authorities listed on the Agenda with no reportable action taken.

1. PRESENTATIONS AND PROCLAMATIONS

1.1 Lomarena Elementary Student Liaison Report
The City Council presented a Certificate of Appointment and received a report from Lomarena Elementary School Student Liaison Arthur Hayaud.

1.2 Laguna Hills High School Student Liaison Report
The City Council received a report from Laguna Hills High School 2023 Fall Student Liaison Forrest Frey.

2. SCHEDULE OF FUTURE EVENTS

2.1 Schedule of Future Events
City Clerk Lee announced the upcoming meetings and events.

4.2.a
Packet Pg. 10
Attachment: City Council/Planning Agency Minutes for the October 24, 2023, Regular Meeting (3344 : Approval of Minutes for October 24, 2023, City of Laguna Hills City Council/Planning Agency Tuesday, October 24, 2023 Regular Meeting Minutes
3 3. PUBLIC COMMENTS
The following individual addressed the City Council on non-agendized items:

Gregory Meade, a resident of Laguna Hills, expressed his appreciation to Orange County Fire Authority (OCFA) and Orange County Sheriff’s Department (OCSD) for their response to a recent fire in his neighborhood.

4. CONSENT CALENDAR
Motion to approve the Consent Calendar.

RESULT: APPROVED [UNANIMOUS]
MOVER: Erica Pezold, Council Member
SECONDER: Dave Wheeler, Mayor Pro Tempore
AYES: Janine Heft, Mayor; Dave Wheeler, Mayor Pro Tempore; Don Caskey, Council Member; Erica Pezold, Council Member; Joshua Sweeney, Council Member

4.2 Approval of Minutes for October 10, 2023, Special Meeting Recommendation: That the City Council approve the City Council Minutes for the October 10, 2023, Special Meeting.

4.3 Approval of Minutes for October 10, 2023, Regular Meeting Recommendation: That the City Council approve the City Council/Planning Agency Minutes for the October 10, 2023, Regular Meeting.

4.4 Ratification of October 24, 2023, Warrant Register
Recommendation: That the City Council ratify the accompanying Warrant Register for the period from October 3, 2023, to October 12, 2023, in the amount of $1,403,275.65.

4.5 Treasurer's Investment Report for September 2023
Recommendation: That the City Council receive and file the Treasurer's Investment Report for the month of September 2023.

4.2.a
Packet Pg. 11
Attachment: City Council/Planning Agency Minutes for the October 24, 2023, Regular Meeting (3344 : Approval of Minutes for October 24, 2023, City of Laguna Hills City Council/Planning Agency Tuesday, October 24, 2023 Regular Meeting Minutes
4 4.6 Appointment of Labor Negotiator
Recommendation: That the City Council, pursuant to Government Code Section 54957.6, select and appoint Mayor Heft to serve as the Council's designated representative for purposes of: (A) Facilitating the Annual Performance Evaluation of the City Manager; and (B) Conducting Labor Negotiations with the City Manager, an unrepresented employee.

4.7 Second Reading & Adoption of Proposed Ordinance Adding Chapter 3-36 (Informal Bidding - Public Projects) to Title 3 (Revenue and Finance) of the Laguna Hills Municipal Code to Provide Informal Bidding Procedures in Accordance with the Uniform Public Construction Cost Accounting Act Recommendation: That the City Council: 1) Adopt Ordinance No. 2023-5: “AN ORDINANCE OF THE CITY OF LAGUNA HILLS, CALIFORNIA, ADDING CHAPTER 3-36 (INFORMAL BIDDING - PUBLIC PROJECTS) TO TITLE 3 (REVENUE AND FINANCE) OF

THE LAGUNA HILLS MUNICIPAL CODE TO PROVIDE INFORMAL BIDDING

PROCEDURES IN ACCORDANCE WITH THE UNIFORM PUBLIC CONSTRUCTION COST ACCOUNTING ACT"; and 2) Authorize the Mayor to execute the Ordinance.

4.8 Approval of Proposed Contract Services Agreement for School Crossing Guard Services with All City Management Services, Inc., for a Three-Year Term
Recommendation: That the City Council: 1) Approve the proposed Contract Services Agreement with All City Management Services, Inc., to provide school crossing guard services. The proposed contract is for a three-year term from November 10, 2023, through June 30, 2026, for a total not-to-exceed maximum contract amount of $457,152. The total not-to-exceed maximum contract amount is an aggregate of the following anticipated annual amounts: $138,845 for Year 1 (2023/2024); $147,096 for Year 2 (2024/2025); $156,211 for Year 3 (2025/2026); and an additional $5,000 per year ($15,000) to cover unanticipated costs; and 2) Authorize the Mayor to execute the proposed Contract Services Agreement for school crossing guard services with All City Management Services, Inc.

4.9 Fiscal Year 2022-2023 Development Impact Fees Annual Report Recommendation: That the City Council approve the Fiscal Year 2022-2023 Development Impact Fees Annual Report pursuant to California Government Code Section 66006.

4.2.a
Packet Pg. 12
Attachment: City Council/Planning Agency Minutes for the October 24, 2023, Regular Meeting (3344 : Approval of Minutes for October 24, 2023, City of Laguna Hills City Council/Planning Agency Tuesday, October 24, 2023 Regular Meeting Minutes
5 4.10 Purchase of Electric Cart with AB2766 Funds
Recommendation: That the City Council authorize the Finance Director to amend the budget in the AQMD AB2766 fund in the amount of $15,500 to afford the purchase of a new electric cart.

ITEMS REMOVED FROM THE CONSENT CALENDAR
There were no items removed from the Consent Calendar.

5. PLANNING AGENCY
Mayor Heft recessed the City Council Meeting, and acting in capacity as Chair, called the Regular Meeting of the Planning Agency of the City of Laguna Hills, California, to order at 7:17 p.m.

5.1. ROLL CALL OF PLANNING AGENCY MEMBERS
Attendee Name Title Status Arrived
Janine Heft Char Present
Dave Wheeler Vice Chair Present
Don Caskey Agency Member Present
Erica Pezold Agency Member Present
Joshua Sweeney Agency Member Present

5.2. PUBLIC COMMENTS
There were no Planning Agency public comments on non-agendized items.

5.3. APPROVAL OF MINUTES
The Planning Agency Minutes were approved by the City Council.

5.4. ADMINISTRATIVE REPORTS
There were no Planning Agency administrative reports.

5.5. PLANNING AGENCY PUBLIC HEARINGS
Agency Member Sweeney recused himself from participating in the item due to a potential conflict of interest caused by his residence being located within 1,000 feet of the subject parcel and left the dais.

4.2.a
Packet Pg. 13
Attachment: City Council/Planning Agency Minutes for the October 24, 2023, Regular Meeting (3344 : Approval of Minutes for October 24, 2023, City of Laguna Hills City Council/Planning Agency Tuesday, October 24, 2023 Regular Meeting Minutes
6 5.5.1 Site Development Permit/Master Sign Program (SDP/MSP) No.

USE-0140-2023, a Request by Diana Nagel, Project Manager with Promotional Signs, on Behalf of Property Owner Milan Capital Management for Approval of a Master Sign Program for Laguna Hills Plaza Located at 24901 Alicia Parkway
Assistant Planner Ash reviewed the information provided in the staff report, provided a PowerPoint presentation, and responded to Agency Member request for additional information.

Chair Heft resumed the Public Hearing continued from September 26, 2023.

The following individual addressed the Planning Agency on Item No. 5.5.1:

Project Applicant Dick Christie, President, Promotional Signs responded to Agency Member requests for additional information.

Project Applicant Bret Bernard, AICP, Director of Planning & Development, Milan Capital Management responded to Agency Member requests for additional information and agreed to abide by the project’s conditions of approval.

Chair Heft closed the Public Hearing.

Recommendation: That the Planning Agency:
1) Resume the public hearing continued from September 26, 2023; 2) Find and determine that the project is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15311(a) (Class 11, Accessory Structures); and
3) Adopt Resolution No. PA2023-10-24-1: “A RESOLUTION OF THE

PLANNING AGENCY OF THE CITY OF LAGUNA HILLS, CALIFORNIA,

APPROVING SITE DEVELOPMENT PERMIT/MASTER SIGN PROGRAM
(SDP/MSP) NO. USE-0140-2023, A REQUEST BY DIANA NAGEL, PROJECT

MANAGER WITH PROMOTIONAL SIGNS ON BEHALF OF PROPERTY OWNER

MILAN CAPITAL MANAGEMENT FOR APPROVAL OF A MASTER SIGN
PROGRAM FOR LAGUNA HILLS PLAZA LOCATED AT 24901 ALICIA
PARKWAY.”

4.2.a
Packet Pg. 14
Attachment: City Council/Planning Agency Minutes for the October 24, 2023, Regular Meeting (3344 : Approval of Minutes for October 24, 2023, City of Laguna Hills City Council/Planning Agency Tuesday, October 24, 2023 Regular Meeting Minutes
7 RESULT: APPROVED [UNANIMOUS]
MOVER: Erica Pezold, Agency Member
SECONDER: Don Caskey, Agency Member
AYES: Janine Heft, Chair; Dave Wheeler, Vice Chair;
Don Caskey, Agency Member, Erica Pezold, Agency
Member, Joshua Sweeney, Agency Member

PLANNING AGENCY ADJOURNMENT
Chair Heft adjourned the Planning Agency Meeting at 7:35 p.m. and reconvened the City Council Meeting. All Council Members were present in Chamber.

6. CITY COUNCIL PUBLIC HEARINGS
There were no City Council public hearings.

7. ADMINISTRATIVE REPORTS

7.1. City Manager
The City Manager gave no administrative reports.

7.2. Deputy City Manager/Community Services Director

7.2.1 The City of Laguna Hills Memorial Day Race Event and the 3/5 Marine Battalion
Deputy City Manager/Community Service Director Reynolds reviewed the information provided in the staff report and responded to Council Member requests for additional information.

Karen Robbins, Committee Secretary, Laguna Hills Team Darkhorse Support Committee provided information on the history of the race event and spoke in favor of the partnership the City has with Laguna Hills Team Darkhorse Support Committee and the 3rd Battalion, 5th Marines Regiment, 1st Marine Division.

City Attorney Simonian responded to Council Member requests for additional information.

City Manager Hildenbrand responded to Council Member requests for additional information.

Recommendation: That the City Council discuss and provide direction to Staff on the City's Memorial Day Race event and the event's support of the 3/5 Marine Battalion.

4.2.a
Packet Pg. 15
Attachment: City Council/Planning Agency Minutes for the October 24, 2023, Regular Meeting (3344 : Approval of Minutes for October 24, 2023, City of Laguna Hills City Council/Planning Agency Tuesday, October 24, 2023 Regular Meeting Minutes
8 A motion to: 1) Allow inclusion of fallen service members from all branches of the military in the race event, providing additional banners and social media posts for additional fallen service members; 2) Direct Staff to prepare an authorizing resolution for community assistance funding in the amount of $10,000 per year, removing the pledge formula based on the number of race registrants; 3) Provide the public an option to donate to the 3/5 Marine Battalion on the race registration form; and 4) Allow Staff to work with Spectrum Sports Management to review and potentially raise race event fees was moved by Council Member Pezold, seconded by Mayor Pro Tempore Wheeler.

RESULT: APPROVED [UNANIMOUS]
MOVER: Erica Pezold, Council Member
SECONDER: Dave Wheeler, Mayor Pro Tempore
AYES: Janine Heft, Mayor, Dave Wheeler, Mayor Pro
Tempore, Don Caskey, Council Member, Erica
Pezold, Council Member, Joshua Sweeney, Council
Member

8. MATTERS AGENDIZED AND PRESENTED BY CITY COUNCIL MEMBERS

8.1 Opposition to Assembly Constitutional Amendment (ACA) 1 and Assembly Constitutional Amendment (ACA) 13.

Mayor Heft provided information on the item.

City Attorney Simonian responded to Council Member requests for additional information.

Recommendation: Mayor Heft recommends that the City Council direct Staff to prepare a resolution supporting the Taxpayer Protection Act and letters of opposition to Assembly Constitutional Amendment (ACA) Nos. 1 and 13, and return to at a future meeting for City Council approval.

RESULT: APPROVED [UNANIMOUS]
MOVER: Don Caskey, Council Member
SECONDER: Erica Pezold, Council Member
AYES: Janine Heft, Mayor, Dave Wheeler, Mayor Pro Tempore, Don Caskey, Council Member, Erica Pezold, Council
Member, Joshua Sweeney, Council Member

4.2.a
Packet Pg. 16
Attachment: City Council/Planning Agency Minutes for the October 24, 2023, Regular Meeting (3344 : Approval of Minutes for October 24, 2023, City of Laguna Hills City Council/Planning Agency Tuesday, October 24, 2023 Regular Meeting Minutes
9 9. CITY COUNCIL MEMBER COMMITTEE REPORTS

9.1 Committee Assignment Reports
The City Council received reports from City Council Members on the City Council Committee Assignments listed in the staff report.

10. CITY COUNCIL MEMBER COMMENTS
Council Member Pezold
Council Member Pezold stated that her thoughts and prayers are with the family of the victim of a recent shooting in the City and praised Orange County Sheriff’s Department (OCSD) for their response to the incident.

ADJOURNMENT
There being no further business before the City Council at this session, Mayor Heft declared the meeting adjourned at 8:55 p.m.

Jennifer Lee, City Clerk
ATTEST:

Janine Heft, Mayor
Approved at meeting of November 14, 2023

4.2.a
Packet Pg. 17
Attachment: City Council/Planning Agency Minutes for the October 24, 2023, Regular Meeting (3344 : Approval of Minutes for October 24, 2023, City of Laguna Hills
City Council/Planning Agency
Staff Report
DATE: November 14, 2023
TO: Mayor and Council Members
FROM: Eric Hendrickson
Finance Director
ISSUE: Ratification of November 14, 2023, Warrant Register RECOMMENDATION: That the City Council ratify the accompanying Warrant Register for the period from October 13, 2023, to November 2, 2023, in the amount of $466,752.91.

SUMMARY:

The City issues accounts payable disbursements on a regular basis and presents it to City Council for ratification at its next regularly scheduled City Council Meeting. The attached Warrant Register containing checks and electronic funds transfers for the period from October 13, 2023, to November 2, 2023, is being presented for ratification by the City Council. Payments have been reviewed and approved by the appropriate departmental staff. The Finance Director certifies to the accuracy of the attached register and to the availability of monies for payment thereof.

ATTACHMENTS:
• Warrant Register - November 14, 2023
• Payables Detail Report - November 14, 2023

4.3 Packet Pg. 18
Payment Amount
1,354.56

25.54 250.00
283.18
180.00
29,840.10
94,140.69
619.45
9,739.61
20,000.00
200.00
500.00
500.00
12,500.00
6,101.25
11,125.00

16.36 10,067.88

60.00 2,741.31
300.77
492.29
2,760.40
385.00
5,676.55
225.96
16,606.35
588.00
1,440.00
7,222.44
325.53
857.70
4,300.00
120.00
946.08
2,364.08
127.50
208.09
780.00
442.07
2,020.14
543.00
10,000.00
341.83
5,231.53
1,260.00
245.00
1,050.00
4,253.10
816.00
45,745.96
14,434.98
118.82
11/2/2023 10:33:53 AM Page 1 of 4
2822 S-1902 SAN DIEGO GAS AND ELECTRIC 10/26/2023
2823 S-1935 SAN JOAQUIN HILLS TRANSPORT CORRIDOR AGENCY 10/26/2023 2824 S-1904 SOUTHERN CALIFORNIA EDISON 10/26/2023
2819 Z-CD-0431 OVER AND ABOVE ROOFING 10/26/2023
2820 Z-CD-0203 PACIFIC CREST ROOFING 10/26/2023
2821 Z-CD-0429 PORTILLO, VIDAL 10/26/2023
2816 M-1302 MOULTON NIGUEL WATER DISTRICT 10/26/2023
2817 Z-CD-0382 NEIGHBORHOOD ROOFING 10/26/2023
2818 Z-CS-0439 NIGUEL COAST ORAL SURGERY 10/26/2023
2813 J-1057 JAMEY CLARK, INC. 10/26/2023
2814 L-1226 LAGUNA HILLS CHAMBER OF COMMERCE 10/26/2023 2815 M-1388 MOBILE MINI, INC. 10/26/2023
2810 Z-CD-0221 HAGGERTY JR., PAUL R. 10/26/2023
2811 H-0934 HOME DEPOT 10/26/2023
2812 I-0960 IRV SEAVER MOTORCYCLES 10/26/2023
2807 D-0453 DEPARTMENT OF CONSERVATION 10/26/2023
2808 D-0423 DIVISION OF THE STATE ARCHITECT STATE OF CALIFORNIA 10/26/2023 2809 E-0600 EWING IRRIGATION PRODUCTS, INC 10/26/2023
2804 Z-CD-0430 CHAVEZ, MIGUEL 10/26/2023
2805 P-1640 COSTCO MEMBERSHIP 10/26/2023
2806 C-0023 COX COMMUNICATION 10/26/2023
2801 A-0138 ALL CITY MANAGEMENT, INC. 10/26/2023
2802 B-0437 BRINKS, INCORPORATED 10/26/2023
2803 C-1102 CALIFORNIA BUILDING STANDARDS COMMISSION 10/26/2023 2798 W-2337 WEST COAST ARBORISTS, INC. 10/19/2023
2799 W-2377 WILLDAN ENGINEERING 10/19/2023
2800 Z-CD-0241 ABOVE IT ALL ROOFING INC 10/26/2023
2795 S-2322 SAGECREST PLANNING AND ENVIRONMENTAL 10/19/2023 2796 S-1904 SOUTHERN CALIFORNIA EDISON 10/19/2023
2797 T-2712 TOTAL SOURCE OFFICEWORKS 10/19/2023
2792 M-1388 MOBILE MINI, INC. 10/19/2023
2793 O-1546 OFFICE SOLUTIONS 10/19/2023
2794 P-1796 PMC PLUMBING, INC. 10/19/2023
2789 J-1057 JAMEY CLARK, INC. 10/19/2023
2790 L-1393 LEAGUE OF CALIFORNIA CITIES, ORANGE COUNTY DIVISION 10/19/2023 2791 M-1600 MERCY HOUSE LIVING CENTERS, INC. 10/19/2023 2786 H-0829 HARTZOG AND CRABILL, INC. 10/19/2023
2787 H-0960 HR GREEN PACIFIC, INC. 10/19/2023
2788 I-0960 IRV SEAVER MOTORCYCLES 10/19/2023
2783 Z-CS-0440 FILAMOR, AURELITA 10/19/2023
2784 Z-CS-0438 FONSECA, LORENA 10/19/2023
2785 G-0821 G2 CONSTRUCTION INC. 10/19/2023
2780 E-0554 ECONOMICS, INC. 10/19/2023
2781 E-0606 EIDE BAILLY LLP 10/19/2023
2782 Z-CS-0433 EXCEL COLLEGE AND RETIREMENT PLANNING 10/19/2023 2777 C-1144 CHARLES ABBOTT ASSOCIATES, INC 10/19/2023
2778 C-1008 COUNTY OF ORANGE, NPDES 10/19/2023
2779 D-0575 DOG WASTE DEPOT 10/19/2023
2774 Z-CS-0437 ALEXANDER, JEFF 10/19/2023
2775 A-0365 AT AND T - CALNET 3 10/19/2023
2776 B-0304 BEE MAN, THE 10/19/2023
Payment Type: Regular
2772 W-2450 WEX BANK 10/16/2023
2773 A-0349 A SOURCE OF PRIDE 10/19/2023
Warrant Register - November 14, 2023
City of Laguna Hills, CA By Check Number
Date Range: 10/13/2023 - 11/02/2023
Check Number Vendor Number Vendor Name Payment Date

4.3.a
Packet Pg. 19
Attachment: Warrant Register - November 14, 2023 (3348 : Warrant Register, November 14, 2023) Payment Amount
171.86
161.63
750.00
862.39
4,400.00
7,143.00

24.67 310.00
1,512.10
500.00
582.84
135.83
500.00
3,201.60
250.00
376.84
450.00
949.06
500.00
250.00
520.00
420.00
263.63
1,735.50
18,278.85
32,100.28
28,240.51
Total Regular: 437,064.69
11/2/2023 10:33:53 AM Page 2 of 4
2849 W-2337 WEST COAST ARBORISTS, INC. 11/02/2023
2850 R-1801 WOODRUFF 11/02/2023
2851 W-2452 WSP USA ENVIRONMENT AND INFRASTRUCTURE INC 11/02/2023 2846 Z-CD-0203 PACIFIC CREST ROOFING 11/02/2023
2847 R-1985 REGIONAL FIRST AID, INC 11/02/2023
2848 Z-CD-0433 WALLCON, INC. 11/02/2023
2843 Z-CS-0441 LOPEZ, ADA 11/02/2023
2844 Z-CS-0445 MOLNAR, SHANNA 11/02/2023
2845 M-1605 MOULTON FAMILY FOUNDATION, INC. 11/02/2023
2840 Z-CD-0411 IPERMIT LLC 11/02/2023
2841 J-1057 JAMEY CLARK, INC. 11/02/2023
2842 J-1071 JCTEES.COM CORPORATION 11/02/2023
2837 Z-CS-0443 GOMEZ, ESTHER 11/02/2023
2838 H-0848 HDL, COREN AND CONE 11/02/2023
2839 Z-CS-0444 HUANG, JENNIE 11/02/2023
2834 Z-CS-0442 COLLEGE COMPASS LLC 11/02/2023
2835 C-0023 COX COMMUNICATION 11/02/2023
2836 D-0561 DOCU-TRUST 11/02/2023
2831 A-0365 AT AND T - CALNET 3 11/02/2023
2832 B-0304 BEE MAN, THE 11/02/2023
2833 C-1177 CANON FINANCIAL SERVICES, INC. 11/02/2023
2828 T-2712 TOTAL SOURCE OFFICEWORKS 10/26/2023
2829 W-2451 W.G. ZIMMERMAN ENGINEERING, INC. 10/26/2023 2830 Z-CD-0432 WERBE, ROBERT 10/26/2023
2825 S-2250 SPARKLETTS 10/26/2023
2826 S-2095 STONE IMAGERY 10/26/2023
2827 S-2325 STONER, ERIC W 10/26/2023
Warrant Register - November 14, 2023 Date Range: 10/13/2023 - 11/02/2023 Check Number Vendor Number Vendor Name Payment Date

4.3.a
Packet Pg. 20
Attachment: Warrant Register - November 14, 2023 (3348 : Warrant Register, November 14, 2023) Payment Amount
23,960.48
5,727.74
168 82 0.00 466,752.91
11/2/2023 10:33:53 AM Page 3 of 4
Bank Drafts 63 2 0.00 29,688.22
EFT's 0 0 0.00 0.00
Manual Checks 0 0 0.00 0.00
Voided Checks 0 0 0.00 0.00
Total Bank Draft: 29,688.22
Bank Code AP Bank Summary
Payable
Count
Payment
Payment Type Count Discount Payment
Regular Checks 105 80 0.00 437,064.69
Payment Type: Bank Draft
DFT0002599 B-0276 BANK OF AMERICA VISA CARD 10/16/2023
DFT0002600 C-1007 OCSD LAW ENFORCEMENT CONTRACT, OC TREASURER-TAX 10/18/2023 Warrant Register - November 14, 2023 Date Range: 10/13/2023 - 11/02/2023 Check Number Vendor Number Vendor Name Payment Date

4.3.a
Packet Pg. 21
Attachment: Warrant Register - November 14, 2023 (3348 : Warrant Register, November 14, 2023) 11/2/2023 10:33:53 AM Page 4 of 4
998 POOL 10/2023 375,651.20
998 POOL 11/2023 91,101.71
466,752.91
168 82 0.00 466,752.91
Fund Summary
Fund Name Period Amount
Bank Drafts 63 2 0.00 29,688.22
EFT's 0 0 0.00 0.00
Manual Checks 0 0 0.00 0.00
Voided Checks 0 0 0.00 0.00
All Bank Codes Check Summary
Payable
Count
Payment
Payment Type Count Discount Payment
Regular Checks 105 80 0.00 437,064.69
Warrant Register - November 14, 2023 Date Range: 10/13/2023 - 11/02/2023

4.3.a
Packet Pg. 22
Attachment: Warrant Register - November 14, 2023 (3348 : Warrant Register, November 14, 2023) Amount
11/2/2023 10:38:29 AM Page 1 of 7
10/16/2023 BANK OF AMERICA VISA CARD COMSVCS 3336 09.21.23 - 04Amazon Marketplace 100-310-620500 11.84 10/16/2023 BANK OF AMERICA VISA CARD COMSVCS 3336 09.21.23 - 05Party City 100-310-695512 29.09 10/16/2023 BANK OF AMERICA VISA CARD COMSVCS 3336 09.21.23 - 06Hobby Lobby 100-310-695512 5.69 10/16/2023 BANK OF AMERICA VISA CARD COMSVCS 3336 09.21.23 - 01Amazon Marketplace 100-310-620500 70.03 10/16/2023 BANK OF AMERICA VISA CARD COMSVCS 3336 09.21.23 - 02Prime Video 100-310-695512 16.99 10/16/2023 BANK OF AMERICA VISA CARD COMSVCS 3336 09.21.23 - 03Amazon Marketplace 100-310-620500 33.75 10/16/2023 BANK OF AMERICA VISA CARD COMSVCS 0066 09.21.23 - 39Hobby Lobby 100-310-695531 60.32 10/16/2023 BANK OF AMERICA VISA CARD COMSVCS 0066 09.21.23 - 40Hobby Lobby 100-310-695531 32.00 10/16/2023 BANK OF AMERICA VISA CARD COMSVCS 0066 09.21.23 - 41Restaurant Depot 100-310-695531 640.41 10/16/2023 BANK OF AMERICA VISA CARD COMSVCS 0066 09.21.23 - 36Tuttle Click Ford 100-310-646100 205.00 10/16/2023 BANK OF AMERICA VISA CARD COMSVCS 0066 09.21.23 - 37Apple.com 100-310-695502 10.99 10/16/2023 BANK OF AMERICA VISA CARD COMSVCS 0066 09.21.23 - 38Facebook 100-310-624500 25.00 10/16/2023 BANK OF AMERICA VISA CARD COMSVCS 0066 09.21.23 - 33Scratch Bakery Cafe 100-310-624500 14.71 10/16/2023 BANK OF AMERICA VISA CARD COMSVCS 0066 09.21.23 - 34OC Register Subscription 100-310-626000 39.54 10/16/2023 BANK OF AMERICA VISA CARD COMSVCS 0066 09.21.23 - 35Facebook 100-310-624500 19.00 10/16/2023 BANK OF AMERICA VISA CARD COMSVCS 0066 09.21.23 - 30California Science Center 100-310-695505 15.00 10/16/2023 BANK OF AMERICA VISA CARD COMSVCS 0066 09.21.23 - 31Facebook 100-310-624500 19.00 10/16/2023 BANK OF AMERICA VISA CARD COMSVCS 0066 09.21.23 - 32Patch.com 100-310-695531 112.00 10/16/2023 BANK OF AMERICA VISA CARD COMSVCS 0066 09.21.23 - 27Party City 100-310-695512 29.09 10/16/2023 BANK OF AMERICA VISA CARD COMSVCS 0066 09.21.23 - 28Luxe Booth 100-310-695531 749.25 10/16/2023 BANK OF AMERICA VISA CARD COMSVCS 0066 09.21.23 - 29Ralphs 100-310-622005 104.65 10/16/2023 BANK OF AMERICA VISA CARD COMSVCS 0066 09.21.23 - 24Diamond Environmental Services 100-310-695503 1,167.80 10/16/2023 BANK OF AMERICA VISA CARD COMSVCS 0066 09.21.23 - 25Smart and Final 100-310-695512 14.99 10/16/2023 BANK OF AMERICA VISA CARD COMSVCS 0066 09.21.23 - 26Amazon Marketplace 100-310-620500 23.69 10/16/2023 BANK OF AMERICA VISA CARD COMSVCS 0066 09.21.23 - 21CA State Parks Store 100-310-695505 200.22 10/16/2023 BANK OF AMERICA VISA CARD COMSVCS 0066 09.21.23 - 22Same Day Awards 100-310-695531 113.71 10/16/2023 BANK OF AMERICA VISA CARD COMSVCS 0066 09.21.23 - 23Amazon Marketplace 100-310-620500 61.08 10/16/2023 BANK OF AMERICA VISA CARD COMSVCS 0066 09.21.23 - 18Facebook 100-310-624500 15.00 10/16/2023 BANK OF AMERICA VISA CARD COMSVCS 0066 09.21.23 - 19Sonic Wall 100-195-700090 5,961.90 10/16/2023 BANK OF AMERICA VISA CARD COMSVCS 0066 09.21.23 - 20Best Buy 100-195-940000 263.93 10/16/2023 BANK OF AMERICA VISA CARD COMSVCS 0066 09.21.23 - 15Microsoft 365 100-195-940000 99.99 10/16/2023 BANK OF AMERICA VISA CARD COMSVCS 0066 09.21.23 - 16Varidesk 100-195-940000 218.19 10/16/2023 BANK OF AMERICA VISA CARD COMSVCS 0066 09.21.23 - 17Ladera Ranch Maintenance Corporation (LARMAC)
100-310-611000 750.00
10/16/2023 BANK OF AMERICA VISA CARD COMSVCS 0066 09.21.23 - 12Vizual Symphony 100-195-700090 980.00 10/16/2023 BANK OF AMERICA VISA CARD COMSVCS 0066 09.21.23 - 13Ralphs 100-310-611000 27.56 10/16/2023 BANK OF AMERICA VISA CARD COMSVCS 0066 09.21.23 - 14Circle K 100-310-613100 18.00 10/16/2023 BANK OF AMERICA VISA CARD COMSVCS 0066 09.21.23 - 09Exxon Circle K 100-310-613100 13.63 10/16/2023 BANK OF AMERICA VISA CARD COMSVCS 0066 09.21.23 - 10Sonic Wall 100-195-700090 3,507.00 10/16/2023 BANK OF AMERICA VISA CARD COMSVCS 0066 09.21.23 - 11Tuttle Click Ford 100-310-646100 419.69 10/16/2023 BANK OF AMERICA VISA CARD COMSVCS 0066 09.21.23 - 06Samurai Sushi 100-310-695503 90.92 10/16/2023 BANK OF AMERICA VISA CARD COMSVCS 0066 09.21.23 - 07Guitar Center 100-310-695512 98.03 10/16/2023 BANK OF AMERICA VISA CARD COMSVCS 0066 09.21.23 - 08Pizzeria Amore 100-310-695512 35.24 10/16/2023 BANK OF AMERICA VISA CARD COMSVCS 0066 09.21.23 - 03OC Register Subscription 100-310-626000 39.54 10/16/2023 BANK OF AMERICA VISA CARD COMSVCS 0066 09.21.23 - 04Kahoot! 100-310-626000 239.40 10/16/2023 BANK OF AMERICA VISA CARD COMSVCS 0066 09.21.23 - 05Best Buy 100-195-621000 66.76 10/16/2023 WEX BANK 92014824 COMDEV Vehicle Fuel, Sep '23 100-225-613100 319.47 10/16/2023 BANK OF AMERICA VISA CARD COMSVCS 0066 09.21.23 - 01Sonic Wall 100-195-700090 (3,507.00) 10/16/2023 BANK OF AMERICA VISA CARD COMSVCS 0066 09.21.23 - 02Flagman of America 100-310-620500 727.64 10/16/2023 WEX BANK 92014718 POLSVCS Vehicle Fuel, Sep '23 100-420-613100 314.91 10/16/2023 WEX BANK 92014755 PUBWKS Vehicle Fuel, Sep '23 100-355-613100 477.93 10/16/2023 WEX BANK 92014755 PUBWKS Vehicle Fuel, Sep '23 100-355-646100 8.00 Payables Detail Report
City of Laguna Hills, CA By Fund
Payment Dates 10/13/2023 - 11/02/2023
Payment Date Vendor Name Payable Number Description (Payable) Account Number Fund: 100 - GENERAL FUND
10/16/2023 WEX BANK 92014306 COMSVCS Vehicle Fuel, Sep '23 100-310-613100 234.25

4.3.b
Packet Pg. 23
Attachment: Payables Detail Report - November 14, 2023 (3348 : Warrant Register, November 14, 2023) Amount
10/19/2023 EIDE BAILLY LLP EI01569719 Partial Audit Fees, YE 6/30/23 100-155-700051 20,000.00 10/19/2023 EXCEL COLLEGE AND RETIREMENT

PLANNING
FRD-0325A Refund, Facility Rental, R
#1035760.002
100-000-451100 200.00
11/2/2023 10:38:29 AM Page 2 of 7
10/19/2023 IRV SEAVER MOTORCYCLES 92565321 Motorcycle Maintenance, Police Svcs, Jul '23
100-420-646100 16.36
10/19/2023 PMC PLUMBING, INC. 9776254 Parks Contract Repair, Oct '23 100-355-720701 1,065.10 10/19/2023 PMC PLUMBING, INC. 9782264 Parks Contract Repair, Oct '23 100-355-720701 1,695.30 10/19/2023 MOBILE MINI, INC. 9019029501 Storage Rental, Community Center, 10/3 - 10/30/23
100-310-641000 82.97
10/19/2023 MOBILE MINI, INC. 9019040329 Storage Rental, Community Center, 10/4 - 10/31/23
100-310-641000 217.80
10/19/2023 A SOURCE OF PRIDE 9110728 Operating Supplies, Oct '23 100-195-622000 25.54 10/19/2023 JAMEY CLARK, INC. 74426 Park Repairs, Public Works, Oct '23 100-355-720701 8,850.00 10/19/2023 JAMEY CLARK, INC. 74434 Graffiti Removal, Public Works, Oct 100-355-720500 520.38 10/19/2023 JAMEY CLARK, INC. 74438 Park Repairs, Public Works, Oct '23 100-355-720701 157.50 10/19/2023 DOG WASTE DEPOT 575594 Operating Supplies, Oct '23 100-355-622000 619.45 10/19/2023 CHARLES ABBOTT ASSOCIATES, INC 66404 Professional Services, Sep '23 100-225-700000 27,341.10 10/19/2023 JAMEY CLARK, INC. 74424 Graffiti Removal, Public Works, Oct 100-355-720500 540.00 10/19/2023 TOTAL SOURCE OFFICEWORKS 33587 Office Supplies, Oct '23 100-195-620000 225.96 10/19/2023 SAGECREST PLANNING AND

ENVIRONMENTAL
4362 Plan Check Fee, USE-0151-2023, Sep
'23
100-000-223000 385.00
10/19/2023 MERCY HOUSE LIVING CENTERS, INC. 5003-23-08 Contract Services - Homelessness, Aug '23
100-310-720302 2,741.31
10/19/2023 HARTZOG AND CRABILL, INC. 23-0649(HCI#3502) Traffic Signal Mgmt Services, Jul '23 100-356-700101 2,661.25 10/19/2023 HARTZOG AND CRABILL, INC. 23-0930(HCI#3502) Traffic Signal Mgmt Services, Sep '23 100-356-700101 3,440.00 10/19/2023 G2 CONSTRUCTION INC. 231003-R Retention Release CIP #412-K, Phase XI
100-000-201001 12,500.00
10/19/2023 HR GREEN PACIFIC, INC. 167769 Public Works Permit Inspections, Sep '23
100-355-700255 11,125.00
10/19/2023 WEST COAST ARBORISTS, INC. 205849 Tree Trimming Services, Sep '23 100-355-720702 16,606.35 10/19/2023 LEAGUE OF CALIFORNIA CITIES,

ORANGE COUNTY DIVISION
2182 Orange County Division Meeting, Sep
'23
100-155-612001 60.00
10/19/2023 SOUTHERN CALIFORNIA EDISON 100223 - Acct #700162476559 Street Lights, Traffic Control, Aug & Sep '23
100-356-631400 1,314.93
10/19/2023 SOUTHERN CALIFORNIA EDISON 100223 - Acct #700162476559 Street Lights, Traffic Control, Aug & Sep '23
100-356-631900 4,327.83
10/19/2023 BEE MAN, THE 125751 Bee Removal, Public Works, Oct '23 100-355-720701 180.00 10/19/2023 AT AND T - CALNET 3 000020637668 Alarm, Com Ctr & City Hall Lines, Sep '23
100-310-630100 119.76
10/19/2023 WILLDAN ENGINEERING 00626438 Professional Services, VALH, Sep '23 100-000-229100 588.00 10/19/2023 SOUTHERN CALIFORNIA EDISON 100223 - Acct #700162476559 Street Lights, Traffic Control, Aug & Sep '23
100-355-631000 33.79
10/16/2023 BANK OF AMERICA VISA CARD COMSVCS 3336 09.21.23 - 21Funco Mega Outdoor 100-310-695531 7,516.50 10/18/2023 OCSD LAW ENFORCEMENT

CONTRACT, OC TREASURER-TAX
SH 66626 Law Enforce Suppl Svcs, Sep '23,
Hawk Hails Heroes
100-420-720800 5,727.74
10/19/2023 AT AND T - CALNET 3 000020637668 Alarm, Com Ctr & City Hall Lines, Sep '23
100-195-630000 163.42
10/16/2023 BANK OF AMERICA VISA CARD COMSVCS 3336 09.21.23 - 18Amazon.com 100-310-620500 682.20 10/16/2023 BANK OF AMERICA VISA CARD COMSVCS 3336 09.21.23 - 19Amazon Marketplace 100-310-695531 102.22 10/16/2023 BANK OF AMERICA VISA CARD COMSVCS 3336 09.21.23 - 20Amazon Marketplace 100-310-620500 52.70 10/16/2023 BANK OF AMERICA VISA CARD COMSVCS 3336 09.21.23 - 15Amazon Marketplace 100-310-695531 189.32 10/16/2023 BANK OF AMERICA VISA CARD COMSVCS 3336 09.21.23 - 16Amazon Marketplace 100-310-695531 101.76 10/16/2023 BANK OF AMERICA VISA CARD COMSVCS 3336 09.21.23 - 17Amazon Marketplace 100-310-695531 26.93 10/16/2023 BANK OF AMERICA VISA CARD COMSVCS 3336 09.21.23 - 12Amazon Marketplace 100-310-620500 25.85 10/16/2023 BANK OF AMERICA VISA CARD COMSVCS 3336 09.21.23 - 13Amazon Marketplace 100-310-695531 759.45 10/16/2023 BANK OF AMERICA VISA CARD COMSVCS 3336 09.21.23 - 14Amazon Marketplace 100-310-695531 107.60 10/16/2023 BANK OF AMERICA VISA CARD COMSVCS 3336 09.21.23 - 09Subway 100-310-611000 135.84 10/16/2023 BANK OF AMERICA VISA CARD COMSVCS 3336 09.21.23 - 10The Bagel Shack 100-310-611000 34.48 10/16/2023 BANK OF AMERICA VISA CARD COMSVCS 3336 09.21.23 - 11Prime Video 100-310-695512 19.99 Payables Detail Report Payment Dates: 10/13/2023 - 11/02/2023 Payment Date Vendor Name Payable Number Description (Payable) Account Number 10/16/2023 BANK OF AMERICA VISA CARD COMSVCS 3336 09.21.23 - 07Amazon Marketplace 100-310-620500 294.91 10/16/2023 BANK OF AMERICA VISA CARD COMSVCS 3336 09.21.23 - 08Amazon Marketplace 100-310-620500 20.47

4.3.b
Packet Pg. 24
Attachment: Payables Detail Report - November 14, 2023 (3348 : Warrant Register, November 14, 2023) Amount
10/26/2023 ABOVE IT ALL ROOFING INC CD-0980-BLDR-0273-2023 Refund, C&D Deposit, REC-011096- 2023
100-000-227001 1,440.00
11/2/2023 10:38:29 AM Page 3 of 7
10/26/2023 ALL CITY MANAGEMENT, INC. 88425 Crossing Guard Services, 10/1/23 - 10/14/23
100-420-720822 7,222.44
10/26/2023 MOBILE MINI, INC. 9019122705 Storage Rental, Community Center, 10/12 - 11/8/23
100-310-641000 341.83
10/26/2023 HOME DEPOT 9074019 Heritage Day, Sep '23 100-310-695531 251.79 10/26/2023 JAMEY CLARK, INC. 74460 Graffiti Removal, Public Works, Oct 100-355-720500 543.00 10/26/2023 HOME DEPOT 8110613 Heritage Day, Sep '23 100-310-695531 20.95 10/26/2023 HOME DEPOT 8511707 Heritage Day, Sep '23 100-310-695531 71.70 10/26/2023 W.G. ZIMMERMAN ENGINEERING, 23-09-229 On-Call Engineer Services, Sep '23 100-355-700250 4,400.00 10/26/2023 STONE IMAGERY 29064 Professional Services, City Clerk, Oct '23
100-155-700030 161.63
10/26/2023 TOTAL SOURCE OFFICEWORKS 33644 Office Supplies, Comm Ctr, Oct '23 100-310-620500 862.39 10/26/2023 HOME DEPOT 1625200 Heritage Day, Sep '23 100-310-695531 89.04 10/26/2023 IRV SEAVER MOTORCYCLES 20232357 Motorcycle Maintenance, Police Svcs, Oct '23
100-420-646100 2,020.14
10/26/2023 EWING IRRIGATION PRODUCTS, INC 20780989 Landscape Maintenance, Public Works, Oct '23
100-355-720700 208.09
10/26/2023 SPARKLETTS 12194330 101123 Operating Supplies, Comm Ctr, Oct 100-310-622005 171.86 10/26/2023 BRINKS, INCORPORATED 12416720 Courier Fee, Armored Transport, Oct '23
100-155-625000 325.53
10/26/2023 HOME DEPOT 1525444 Heritage Day, Sep '23 100-310-695531 8.59 10/26/2023 LAGUNA HILLS CHAMBER OF

COMMERCE
101723 Contractual Services, FY 23/24 100-155-700026 10,000.00 10/26/2023 SOUTHERN CALIFORNIA EDISON 101923 - Acct #700076000453 Street Lights, Traffic Control, Sep '23 100-356-631400 118.82 10/26/2023 COSTCO MEMBERSHIP 102523 Annual Membership, Com Svcs, FY 23/24
100-310-610000 120.00
10/26/2023 SAN DIEGO GAS AND ELECTRIC 101323 Street Lights, Traffic Control, Com Ctr, Aug-Oct
100-355-631000 12,896.31
10/26/2023 SAN DIEGO GAS AND ELECTRIC 101323 Street Lights, Traffic Control, Com Ctr, Aug-Oct
100-356-631400 16,348.95
10/26/2023 SAN DIEGO GAS AND ELECTRIC 101323 Street Lights, Traffic Control, Com Ctr, Aug-Oct
100-356-631900 3,364.03
10/26/2023 MOULTON NIGUEL WATER DISTRICT 101223 Water Usage, Public Works & Com Ctr, Sep '23
100-310-635100 686.91
10/26/2023 MOULTON NIGUEL WATER DISTRICT 101223 Water Usage, Public Works & Com Ctr, Sep '23
100-355-635000 4,544.62
10/26/2023 SAN DIEGO GAS AND ELECTRIC 101323 Street Lights, Traffic Control, Com Ctr, Aug-Oct
100-310-631100 13,136.67
10/26/2023 CALIFORNIA BUILDING STANDARDS

COMMISSION
093023 Q3 Building Standard Fund, Jul-Sep '23 100-000-442000 (95.30) 10/26/2023 COX COMMUNICATION 100523 T-1 Line, Oct '23 100-195-630000 862.08 10/26/2023 COX COMMUNICATION 100723 Traffic Signal, Oct '23 100-195-630000 84.00 10/26/2023 SAN JOAQUIN HILLS TRANSPORT

CORRIDOR AGENCY
093023 Remit, Transportation Corrider Fees,
Jul-Sep '23
100-000-221006 14,434.98
10/26/2023 DIVISION OF THE STATE ARCHITECT

STATE OF CALIFORNIA
093023 Disability Access Fees, Jul-Sep '23 100-000-221012 1,275.00 10/26/2023 CALIFORNIA BUILDING STANDARDS

COMMISSION
093023 Q3 Building Standard Fund, Jul-Sep '23 100-000-221011 953.00 10/26/2023 STONER, ERIC W 092423 Heritage Day, Sep '23 100-310-695531 750.00 10/26/2023 DEPARTMENT OF CONSERVATION 093023 Remittance, SMIP Fee, Jul-Sep '23 100-000-221001 314.73 10/26/2023 DEPARTMENT OF CONSERVATION 093023 Remittance, SMIP Fee, Jul-Sep '23 100-000-221002 2,049.35 10/19/2023 FILAMOR, AURELITA FRD-0332 Refund, Facility Deposit, R #1035743.002
100-000-222000 500.00
10/19/2023 OFFICE SOLUTIONS I-02166990 Operating Supplies, Oct '23 100-195-622000 492.29 10/19/2023 COUNTY OF ORANGE, NPDES PW240182 Stormwater Program Shared Costs, FY 23/24
100-355-696000 94,140.69
Payment Date Vendor Name Payable Number Description (Payable) Account Number 10/19/2023 ALEXANDER, JEFF FRD-0329 Refund, Facility Deposit, R #1035629.002
100-000-222000 250.00
10/19/2023 FONSECA, LORENA FRD-0330 Refund, Facility Deposit, R #1035762.002
100-000-222000 500.00
Payables Detail Report Payment Dates: 10/13/2023 - 11/02/2023

4.3.b
Packet Pg. 25
Attachment: Payables Detail Report - November 14, 2023 (3348 : Warrant Register, November 14, 2023) Amount
11/02/2023 IPERMIT LLC CD-0994-MECR-0127-2023Refund, Permit Fees, REC-011258- 2023
100-000-221012 4.00
11/02/2023 IPERMIT LLC CD-0994-MECR-0127-2023Refund, Permit Fees, REC-011258- 2023
100-000-442000 161.15
11/2/2023 10:38:29 AM Page 4 of 7
11/02/2023 PACIFIC CREST ROOFING CD-0992-BLDR-0137-2023 Refund, C&D Deposit, REC-010398- 2023
100-000-227001 420.00
11/02/2023 WALLCON, INC. CD-0993-BLDC-0233-2022 Refund, C&D Deposit, REC-009757- 2023
100-000-227001 1,735.50
11/02/2023 IPERMIT LLC CD-0994-MECR-0127-2023Refund, Permit Fees, REC-011258- 2023
100-000-221011 1.00
11/02/2023 JCTEES.COM CORPORATION 8619 Uniforms, Community Services, Feb '23
100-310-622100 949.06
11/02/2023 REGIONAL FIRST AID, INC 98851 Operating Supplies, Oct '23 100-195-622000 96.49 11/02/2023 REGIONAL FIRST AID, INC 98852 Office Supplies, Comm Ctr, Oct '23 100-310-620500 167.14 11/02/2023 WOODRUFF 74848 Professional Services Legal, Sep '23 100-000-223000 1,740.50 11/02/2023 WOODRUFF 74848 Professional Services Legal, Sep '23 100-155-700010 24,413.33 11/02/2023 WOODRUFF 74848 Professional Services Legal, Sep '23 100-155-700011 4,399.45 11/02/2023 JAMEY CLARK, INC. 74454 Park Repairs, Public Works, Oct '23 100-355-720701 180.00 11/02/2023 WOODRUFF 74848 Professional Services Legal, Sep '23 100-000-223000 380.80 11/02/2023 WOODRUFF 74848 Professional Services Legal, Sep '23 100-000-223000 1,166.20 11/02/2023 CANON FINANCIAL SERVICES, INC. 31415182 Lease - New Admin Copier, 10/1/23 - 10/31/23
100-195-641200 836.15
11/02/2023 CANON FINANCIAL SERVICES, INC. 31415183 Lease - Copier, Comm Ctr, 10/1/23 - 10/31/23
100-195-641200 422.11
11/02/2023 JAMEY CLARK, INC. 74453 Graffiti Removal, Public Works, Oct 100-355-720500 270.00 11/02/2023 BEE MAN, THE 126059 Bee Removal, Public Works, Oct '23 100-355-720701 155.00 11/02/2023 WEST COAST ARBORISTS, INC. 206181 Tree Trimming Services, Oct '23 100-355-720702 18,278.85 11/02/2023 CANON FINANCIAL SERVICES, INC. 31415181 Lease - Copier, City Hall, 10/1/23 - 10/31/23
100-195-641200 253.84
11/02/2023 COX COMMUNICATION 101823 T-1 Line, Oct '23 100-195-630000 582.84 11/02/2023 MOULTON FAMILY FOUNDATION, 103023 Heritage Day, Moulton Museum Donation, Oct '23
100-310-695531 520.00
11/02/2023 BEE MAN, THE 125888 Bee Removal, Public Works, Oct '23 100-355-720701 155.00 11/02/2023 AT AND T - CALNET 3 000020632094 Traffic Signal, Public Works, Sep '23 100-356-630000 24.67 11/02/2023 DOCU-TRUST 0051525 Offsite Data Storage, Oct & Nov '23 100-155-700030 4.68 11/02/2023 DOCU-TRUST 0051525 Offsite Data Storage, Oct & Nov '23 100-155-700030 131.15 10/26/2023 WERBE, ROBERT CD-0991-BLDC-0019-2023 Refund, C&D Deposit, REC-010444- 2023
100-000-227001 7,143.00
10/26/2023 NIGUEL COAST ORAL SURGERY FRD-0331 Refund, Facility Deposit, R #1035315.002
100-000-222000 250.00
10/26/2023 NIGUEL COAST ORAL SURGERY FRD-0331 Refund, Facility Deposit, R #1035315.002
100-000-451100 (5.00)
10/26/2023 PACIFIC CREST ROOFING CD-0988-BLDR-0216-2023 Refund, C&D Deposit, REC-010858- 2023
100-000-227001 1,050.00
10/26/2023 PACIFIC CREST ROOFING CD-0989-BLDR-0224-2023 Refund, C&D Deposit, REC-010886- 2023
100-000-227001 1,020.00
10/26/2023 PORTILLO, VIDAL CD-0990-BLDR-0266-2023 Refund, C&D Deposit, REC-011121- 2023
100-000-227001 816.00
10/26/2023 OVER AND ABOVE ROOFING CD-0985-BLDR-0200-2023 Refund, C&D Deposit, REC-010994- 2023
100-000-227001 1,050.00
10/26/2023 PACIFIC CREST ROOFING CD-0986-BLDR-0024-2023 Refund, C&D Deposit, REC-009521- 2023
100-000-227001 1,283.10
10/26/2023 PACIFIC CREST ROOFING CD-0987-BLDR-0180-2023 Refund, C&D Deposit, REC-010680- 2023
100-000-227001 900.00
10/26/2023 HAGGERTY JR., PAUL R. CD-0982-BLDR-0285-2023 Refund, C&D Deposit, REC-011205- 2023
100-000-227001 780.00
10/26/2023 NEIGHBORHOOD ROOFING CD-0983-BLDR-0179-2023 Refund, C&D Deposit, REC-010671- 2023
100-000-227001 630.00
10/26/2023 NEIGHBORHOOD ROOFING CD-0984-BLDR-0193-2023 Refund, C&D Deposit, REC-010761- 2023
100-000-227001 630.00
Payables Detail Report Payment Dates: 10/13/2023 - 11/02/2023 Payment Date Vendor Name Payable Number Description (Payable) Account Number 10/26/2023 CHAVEZ, MIGUEL CD-0981-BLDC-0036-2023 Refund, C&D Deposit, REC-010900- 2023
100-000-227001 4,300.00

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Attachment: Payables Detail Report - November 14, 2023 (3348 : Warrant Register, November 14, 2023) Amount
Grand Total: 466,752.91
11/2/2023 10:38:29 AM Page 5 of 7
Fund 306 - CR&R RECYCLING FEE Total: 9,739.61
Fund: 312 - CASp
10/19/2023 CHARLES ABBOTT ASSOCIATES, INC 66404 Professional Services, Sep '23 312-225-700000 2,499.00 10/26/2023 DIVISION OF THE STATE ARCHITECT

STATE OF CALIFORNIA
093023 Disability Access Fees, Jul-Sep '23 312-000-442000 (1,147.50) Fund 312 - CASp Total: 1,351.50
11/02/2023 WSP USA ENVIRONMENT AND

INFRASTRUCTURE INC
S64114096 Professional Services, NPDES
Support, Sep '23
100-355-700000 28,240.51
11/02/2023 HDL, COREN AND CONE SIN032884 Property Tax Audit, Oct - Dec '23 100-155-700055 3,201.60 Fund 100 - GENERAL FUND Total: 455,661.80
Fund: 306 - CR&R RECYCLING FEE
10/19/2023 ECONOMICS, INC. 2023-3 Professional Services, Recycling Program, Sep '23
306-355-700000 9,739.61
11/02/2023 HUANG, JENNIE FRD-0335 Refund, Facility Deposit, R #1035669.002
100-000-222000 250.00
11/02/2023 MOLNAR, SHANNA FRD-0336 Refund, Facility Deposit, R #1035764.002
100-000-222000 250.00
11/02/2023 COLLEGE COMPASS LLC FRF-0022 Refund, Facility Rental, R #1035404.002
100-000-451100 500.00
11/02/2023 IPERMIT LLC CD-0996-PLMR-0126-2023Refund, Permit Fees, REC-011450- 2023
100-000-442000 19.57
11/02/2023 LOPEZ, ADA FRD-0333 Refund, Facility Deposit, R #1035173.002
100-000-222000 500.00
11/02/2023 GOMEZ, ESTHER FRD-0334 Refund, Facility Deposit, R 100-000-222000 500.00 11/02/2023 IPERMIT LLC CD-0995-MECR-0143-2023Refund, Permit Fees, REC-011451- 2023
100-000-442000 181.12
11/02/2023 IPERMIT LLC CD-0996-PLMR-0126-2023Refund, Permit Fees, REC-011450- 2023
100-000-221011 1.00
11/02/2023 IPERMIT LLC CD-0996-PLMR-0126-2023Refund, Permit Fees, REC-011450- 2023
100-000-221012 4.00
Payment Date Vendor Name Payable Number Description (Payable) Account Number 11/02/2023 IPERMIT LLC CD-0995-MECR-0143-2023Refund, Permit Fees, REC-011451- 2023
100-000-221011 1.00
11/02/2023 IPERMIT LLC CD-0995-MECR-0143-2023Refund, Permit Fees, REC-011451- 2023
100-000-221012 4.00
Payables Detail Report Payment Dates: 10/13/2023 - 11/02/2023

4.3.b
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Attachment: Payables Detail Report - November 14, 2023 (3348 : Warrant Register, November 14, 2023) 100-310-720302 Contract Services - Homelessness 2,741.31 2,741.31 100-355-613100 Vehicle-Fuel 477.93 477.93
100-355-622000 Operating Supplies 619.45 619.45
11/2/2023 10:38:29 AM Page 6 of 7
100-310-695502 Special Needs Program 10.99 10.99
100-310-695503 Build A Fort Camps 1,258.72 1,258.72
100-310-695505 Cultural Excursions 215.22 215.22
100-310-695512 Movies in the Park 249.11 249.11
100-310-695531 Heritage Day 12,223.54 12,223.54
100-310-630100 Phone & Communication Comm 119.76 119.76 100-310-631100 Utilities - Electric Comm Ctr 13,136.67 13,136.67 100-310-635100 Utilities - Water Comm Ctr 686.91 686.91 100-310-641000 Rent/Lease - Equipment 642.60 642.60
100-310-646100 Maint & Repairs - Vehicles 624.69 624.69 100-310-620500 Office Supplies - Comm Ctr 3,033.69 3,033.69 100-310-622005 Operating Supplies Comm Ctr 276.51 276.51 100-310-622100 Operating Supplies - Uniforms 949.06 949.06 100-310-624500 Advertising-Program Services 92.71 92.71 100-310-626000 Subscriptions & Books 318.48 318.48
100-225-613100 Vehicle-Fuel 319.47 319.47
100-225-700000 Prof. Svcs - Building & Safety 27,341.10 27,341.10 100-310-610000 Memberships and Dues Expense 120.00 120.00 100-310-611000 Training and Education 947.88 947.88
100-310-613100 Vehicle-Fuel 265.88 265.88
100-195-622000 Operating Supplies 614.32 614.32
100-195-630000 Telephone & Communication 1,692.34 1,692.34 100-195-641200 Rent/Lease - Copier 1,512.10 1,512.10
100-195-700090 Computer Consulting Services 6,941.90 6,941.90 100-195-940000 Computer Hardware & Software 582.11 582.11 100-155-700030 Professional Svcs- City Clerk 297.46 297.46 100-155-700051 Professional Services - Annual 20,000.00 20,000.00 100-155-700055 Professional Services - 3,201.60 3,201.60 100-195-620000 Office Supplies 225.96 225.96
100-195-621000 Computer Supplies 66.76 66.76
100-155-612001 Travel - League of CA Cities 60.00 60.00 100-155-625000 Postage & Delivery 325.53 325.53
100-155-700010 Legal Services-General Counsel 24,413.33 24,413.33 100-155-700011 Legal Services-Litigation 4,399.45 4,399.45 100-155-700026 Prof Svcs - Business Attraction & 10,000.00 10,000.00 100-000-223000 Plan Application Deposit 3,672.50 3,672.50 100-000-227001 Security Deposit - Waste 23,197.60 23,197.60 100-000-229100 Trust Account - VALH Project - 588.00 588.00 100-000-442000 Building Related Permits 266.54 266.54
100-000-451100 Recreation Fees - Reservation 695.00 695.00 100-000-221002 SMIP - Commercial 2,049.35 2,049.35
100-000-221006 SJHTC B 14,434.98 14,434.98
100-000-221011 Building Standards Fee 956.00 956.00
100-000-221012 SB1186 ADA CASp Fees 1,287.00 1,287.00
100-000-222000 Refundable Deposits 3,000.00 3,000.00
312 - CASp 1,351.50 1,351.50
Grand Total: 466,752.91 466,752.91
Account Summary
Account Number Account Name Expense Amount Payment Amount 100-000-201001 Accounts Payable - Retention 12,500.00 12,500.00 100-000-221001 SMIP - Residential 314.73 314.73
Payables Detail Report Payment Dates: 10/13/2023 - 11/02/2023 Report Summary
Fund Summary
Fund Expense Amount Payment Amount
100 - GENERAL FUND 455,661.80 455,661.80
306 - CR&R RECYCLING FEE 9,739.61 9,739.61

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Attachment: Payables Detail Report - November 14, 2023 (3348 : Warrant Register, November 14, 2023) Project Account Summary
Project Account Key Expense Amount Payment Amount
**None** 466,752.91 466,752.91
Grand Total: 466,752.91 466,752.91
11/2/2023 10:38:29 AM Page 7 of 7
100-420-720822 Crossing Guard Services 7,222.44 7,222.44 306-355-700000 Professional Services 9,739.61 9,739.61
312-000-442000 Building Related Permits (1,147.50) (1,147.50) 312-225-700000 Professional Services 2,499.00 2,499.00
Grand Total: 466,752.91 466,752.91
100-356-631900 MOE Electricity On-bill Financing 7,691.86 7,691.86 100-356-700101 MOE Traffic Engineer Services 6,101.25 6,101.25 100-420-613100 Vehicle-Fuel 314.91 314.91
100-420-646100 Maint & Repairs - Vehicles 2,036.50 2,036.50 100-420-720800 General Law Enforcement 5,727.74 5,727.74 100-355-720700 Landscape Maintenance Contract 208.09 208.09 100-355-720701 Parks Contract Repair 12,437.90 12,437.90 100-355-720702 Tree Maintenance 34,885.20 34,885.20
100-356-630000 MOE Telephone & 24.67 24.67
100-356-631400 MOE Electricity-Streetlights & 17,782.70 17,782.70 100-355-696000 NPDES Permits & Fees 94,140.69 94,140.69 100-355-700000 Professional Services 28,240.51 28,240.51 100-355-700250 On-Call Engineer Services 4,400.00 4,400.00 100-355-700255 Improvement Inspection 11,125.00 11,125.00 100-355-720500 Graffiti Removal 1,873.38 1,873.38
Account Summary
Account Number Account Name Expense Amount Payment Amount 100-355-631000 Utilities - Electric 12,930.10 12,930.10 100-355-635000 Utilities - Water 4,544.62 4,544.62
100-355-646100 Maint & Repairs - Vehicles 8.00 8.00
Payables Detail Report Payment Dates: 10/13/2023 - 11/02/2023

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Attachment: Payables Detail Report - November 14, 2023 (3348 : Warrant Register, November 14, 2023) City of Laguna Hills
City Council/Planning Agency
Staff Report
DATE: November 14, 2023
TO: Mayor and Council Members
FROM: Eric Hendrickson
Finance Director
ISSUE: Annual Review of Investment & Portfolio Policies and Delegation of Investment Authority to the City Treasurer
RECOMMENDATION: That the City Council adopt a Resolution entitled: "A Resolution of the City Council of the City of Laguna Hills, California, delegating investment authority to the City Treasurer and approving a policy for the investment of surplus City funds and rescinding Resolution No. 2022-12-13-7." SUMMARY:

State law specifies that the treasurer or chief fiscal officer of the local agency may annually render to the legislative body of that local agency and any oversight committee of that local agency a statement of investment policy, which the legislative body of the local agency shall consider at a public meeting. The City’s current Investment and Portfolio Policies require that the policies be annually reviewed and adopted by resolution of the City Council. State law also allows the City Council to delegate its investment authority to the City Treasurer for up to one year at a time.

Staff has reviewed the City’s 2023 Investment and Portfolio Policies and is recommending just one change to the existing policies for 2024:

1. Update to Section VI. “Portfolio Diversification”
Staff proposes that the maximum percent of portfolio for the City's participation in the State Treasurer's Local Agency Investment Fund (LAIF) and CalTRUST both be increased from 75% to 100%. This will allow for greater flexibility and higher investment earnings, all while maintaining safety and liquidity.

4.4 Packet Pg. 30
2024 Investment Policy
November 14, 2023

Page 2 ends

The existing Investment and Portfolio Policies continue to comply with State law and are consistent with the recommended best practices promulgated by the Government Finance Officers Association.

A Resolution to adopt the 2024 Investment and Portfolio Policies and delegate the investment authority to the City Treasurer for the year 2024 is attached. Staff is recommending approval.

ATTACHMENTS:
• Proposed Resolution including Exhibit A 2024 Investment and Portfolio Policies • Proposed 2024 Investment Policy (red lined version)

4.4 Packet Pg. 31
RESOLUTION NO. 2023-11-14-X

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

LAGUNA HILLS, CALIFORNIA, DELEGATING

INVESTMENT AUTHORITY TO THE CITY TREASURER

AND APPROVING A POLICY FOR THE INVESTMENT OF

SURPLUS CITY FUNDS AND RESCINDING RESOLUTION
NO. 2022-12-13-7
WHEREAS, pursuant to Laguna Hills Municipal Code Section 2-16.020, the City Council has appointed the City Manager as the City Treasurer; and WHEREAS, pursuant to Government Code Section 53607, the City Council may delegate its investment authority to the City Treasurer for up to one year; and WHEREAS; pursuant to Government Code Section 53646, the City Council of the City of Laguna Hills, has publicly considered an annual statement of investment policy and desires to adopt such policy to guide the investment management of the Deputy Treasurer under the supervision of the City Treasurer.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAGUNA

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

SECTION 1. This Resolution rescinds Resolution No 2022-12-13-7.

SECTION 2. The City Council hereby delegates investment authority to the City Treasurer.

SECTION 3. The City Council hereby adopts the investment policy, attached hereto as Exhibit “A” and incorporated herein by this reference.

SECTION 4. The effective date of this Resolution is January 1, 2024.

PASSED, APPROVED, AND ADOPTED this 14th day of November 2023. ____________________________________

JANINE HEFT, MAYOR
ATTEST:
______________________________________

JENNIFER LEE, CITY CLERK

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Attachment: Proposed Resolution including Exhibit A 2024 Investment and Portfolio Policies (3349 : 2024 Investment Policy) Resolution No. 2023-11-14-X

Page 2 ends

STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss

CITY OF LAGUNA HILLS )
I, Jennifer Lee, City Clerk of the City of Laguna Hills, California, DO HEREBY CERTIFY that the foregoing is a true and correct copy of Resolution No. 2023-11-14-X adopted by the City Council of the City of Laguna Hills, California, at a Regular Meeting thereof held on the 14th day of November 2023, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
(SEAL)
_____________________________________

JENNIFER LEE, CITY CLERK

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Attachment: Proposed Resolution including Exhibit A 2024 Investment and Portfolio Policies (3349 : 2024 Investment Policy) 2024 INVESTMENT & PORTFOLIO POLICY

CITY OF LAGUNA HILLS

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Attachment: Proposed Resolution including Exhibit A 2024 Investment and Portfolio Policies (3349 : 2024 Investment Policy) Investment and Portfolio Policies
Calendar Year 2024

TABLE OF CONTENTS
I. Policy ...................................................................................................... 1 II. Scope ..................................................................................................... 1 III. Objectives ............................................................................................... 1 IV. Standards of Care ................................................................................... 3 V. Safekeeping and Custody ...................................................................... 4 VI. Authorized and Suitable Investments ..................................................... 5 VII. Competitive Selection of Investment Instrument .................................... 7 VIII. Reporting ................................................................................................. 7 IX. Annual Investment Policy and Adoption................................................. 8 Appendix A - Glossary of Terms .................................................................. 9

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Attachment: Proposed Resolution including Exhibit A 2024 Investment and Portfolio Policies (3349 : 2024 Investment Policy)

CITY OF LAGUNA HILLS

INVESTMENT AND PORTFOLIO POLICIES
2024

Page 1 ends

I Policy
It is the Policy of the City of Laguna Hills to invest in a manner, which will ensure the safety of public funds by mitigating credit and interest rate risk, and provide sufficient liquidity to meet all operating requirements. The City shall also strive to attain a return on investment that is reasonable given that safety of principal and liquidity are the primary objectives in these policies and yield is secondary. The investment program shall be operated in conformity with federal, state and other legal requirements, including the State of California Government Code Section 53601, et, seq., these policies and written administrative procedures.

II Scope
This investment policy applies to the investment of all funds of the City and the City of Laguna Hills Public Improvement Corporation, including the following:

General Fund
Special Revenue Funds
Capital Projects Funds
Funds Held Under Trust Indenture
These funds are accounted for in the City’s Annual Comprehensive Financial Report.

Except for cash in certain restricted and special funds, the City will consolidate cash and reserve balances from all funds to maximize investment earnings and to increase efficiencies with regard to investment pricing, safekeeping and administration. Investment income will be allocated to the various funds based on their respective participation and in accordance with generally accepted accounting principles.

Investments under the trust indenture will be held separately and made in accordance with the indenture requirements.

III Objectives
Funds of the City will be invested, by the City Treasurer, or authorized deputies of the Treasurer (hereinafter collectively referred to as “the Treasurer”) in accordance with these policies and written administrative procedures. The primary objectives, in priority order, of investment activities shall be:
1) Safety
Safety of principal is the foremost objective of the City’s investment program. Investments shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio and the mitigation of credit risk and interest rate risk.
a) Credit Risk
Credit Risk is the risk of loss due to the failure of the security issuer or backer.

Credit Risk may be mitigated by:

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Attachment: Proposed Resolution including Exhibit A 2024 Investment and Portfolio Policies (3349 : 2024 Investment Policy)

CITY OF LAGUNA HILLS

INVESTMENT AND PORTFOLIO POLICIES
2024

Page 2 ends

i. limiting investments to the safest types of securities listed under Section VI herein, which shall be limited to those investments backed by the U.S. Government, or an agency thereof, overnight accounts managed by the City’s primary bank, the Local Agency Investment Fund (LAIF), and other specific investments described in Section VI; ii. diversifying the portfolio to avoid concentration of securities from a specific issuer, except issuers of U.S. Treasury securities, so that the failure of any one issuer will not place an undue financial burden on the City;
iii. monitoring all of the City’s investments on a frequent basis to anticipate and respond accordingly to a significant reduction of creditworthiness of any of the depositories, including the City’s primary bank; and iv. performing appropriate due diligence to assure the credit worthiness of any portfolio investment made.
b) Interest Rate Risk
Interest rate risk is the risk that the market value of securities in the portfolio will fall due to changes in general interest rates. To reduce interest rate risk, the City shall limit the maximum maturity horizon of the securities that comprise its portfolio, keeping in mind that the longer the maturity horizon, the greater the price volatility. In accordance with the Government Accounting Standards Board reporting requirements, the portfolio could show unrealized gains or losses for any reporting period.

Interest rate risk may be mitigated by:
i. structuring the investment portfolio so that securities mature to meet cash requirements for ongoing operations, thereby avoiding the need to sell securities on the open market prior to maturity; and
ii. investing operating funds primarily in shorter-term securities. 2) Liquidity
The investment portfolio shall remain sufficiently liquid to meet all operating requirements that may be reasonably anticipated. This is accomplished by structuring the portfolio so that securities mature concurrent with cash needs to meet anticipated demands (static liquidity). Since all possible cash demands cannot be anticipated, the portfolio should consist largely of securities with active secondary or resale markets (dynamic liquidity) and a portion of the portfolio should be invested in readily available funds, to ensure that appropriate liquidity is maintained to meet ongoing obligations.
3) Yield
The rate of return on the City’s investment portfolio is of secondary importance to the safety and liquidity objectives described above. The City’s investment strategy is passive and investments are limited to relatively low-risk securities in anticipation of earning a rate of return throughout

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Attachment: Proposed Resolution including Exhibit A 2024 Investment and Portfolio Policies (3349 : 2024 Investment Policy)

CITY OF LAGUNA HILLS

INVESTMENT AND PORTFOLIO POLICIES
2024

Page 3 ends

budgetary and economic cycles, commensurate with the City’s investment risk constraints and the cash flow characteristics of the portfolio.

The yield shall be designed to attain an average rate of return through market cycles. Although no “benchmark” rate of return is assumed, the portfolio’s yield shall be compared for reporting purposes to LAIF and the 3-month bank CD rate published by the Federal Reserve. These indices are considered benchmarks for lower risk investment transactions and therefore represent a comparable minimum standard for the portfolio’s rate of return.

IV Standards of Care
1) Prudence
The City’s investment portfolio is subject to public scrutiny and review and should be managed with due care and consideration. The portfolio should be created and maintained with the professionalism and care worthy of the public trust.

The standard of prudence to be applied to the Treasurer shall be the “prudent investor rule”, which states, “when investing, reinvesting, purchasing, acquiring, exchanging, selling, and managing public funds, a trustee (the governing body or Treasurer) shall act with care, skill, prudence, and diligence under the circumstances then prevailing, that a prudent person, acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency.” The Treasurer, acting in accordance with written procedures and exercising due diligence, shall not be held personally responsible for a specific security’s credit risk or market price changes, provided that these deviations are reported immediately and that appropriate action is taken to control adverse developments.
2) Ethics and Conflict of Interest
Employees of the City shall refrain from personal business activity that could conflict with the proper execution of the investment program, or which could impair their ability to make impartial investment decisions. State law, City statutes, and City personnel and purchasing practices shall be followed to avoid conflict of interest or the appearance thereof. Employees shall disclose any financial interests or personal relationships with any financial institutions, brokers or securities dealers that conduct business within its jurisdiction, and any personal financial/investment positions that could be related to their management of the portfolio. The Treasurer shall be prohibited from doing business with any broker or securities dealer with whom the City does business, with the exception of the City’s primary bank for banking services. Employees shall subordinate their personal investment transactions to those of the City, particularly with regard to the time of purchases and sales.

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Attachment: Proposed Resolution including Exhibit A 2024 Investment and Portfolio Policies (3349 : 2024 Investment Policy)

CITY OF LAGUNA HILLS

INVESTMENT AND PORTFOLIO POLICIES
2024

Page 4 ends

3) Delegation of Authority
Authority to manage the City’s investment program is delegated to the City Treasurer by Resolution of the City Council of the City of Laguna Hills, California. Management responsibility is hereby delegated to the Finance Director/Deputy Treasurer under the direction of the City Treasurer.

The Deputy Treasurer shall establish written procedures for the operation of the investment program consistent with this investment policy, together with a system of internal controls to regulate the activities of subordinates.

V Safekeeping and Custody
1) Authorized Financial Institutions, Depositories and Brokers/Dealers Investment transactions will be undertaken with securities dealers, brokers and depositories authorized to provide investment services. In addition, the City shall maintain a “Qualified Institution” list of approved security broker/dealers selected by creditworthiness, including the minimum capital requirement of $10 million and at least five years of operation. The City shall conduct periodic evaluations, or whenever deemed necessary, of each financial institution’s standing to determine whether it should remain on the “Qualified Institution” listing. Securities dealers not affiliated with a bank shall be required to be classified as reporting dealers affiliated with the New York Federal Reserve Bank, as primary dealers that qualify under Securities and Exchange Commission Rule 15C3-1 (uniform net capital rule).

All financial institutions and brokers/dealers who desire to become qualified for investment transactions with the City must supply the following:
1) Audited financial statements demonstrating compliance with State and Federal capital adequacy guidelines. Audited financial statements will be submitted annually to the City. 2) Proof of National Association of Securities Dealers (NASD) certification, except for counterparties in Certificates of Deposits transactions. 3) Proof of State Registration
4) Completed broker/dealer questionnaire, except for Certificates of Deposits counterparties. 5) Certification of having read and understood and agreeing to comply with the City’s Investment Policies, as well as to disclose potential conflicts or risks to public funds that might arise out of business transactions between the firm/depository and the City. 6) Evidence of adequate insurance coverage.

In addition, all financial institutions shall agree to undertake reasonable efforts to preclude imprudent transactions involving the City’s funds. The supervising officer shall agree to exercise due diligence in monitoring the activities of other officers and subordinate staff members engaged in transactions with the City. Employees of any firm or financial institution offering securities or

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investments to the City shall be trained in the precautions appropriate to public-sector investment and shall be required to familiarize themselves with the City’s Investment and Portfolio Policies. 2) Internal Control
Treasurer shall establish a system of written internal control policies and procedures, which shall be reviewed annually by the independent auditor. The controls shall be designed to prevent loss of public funds due to fraud, error, misrepresentation, unanticipated market changes or imprudent actions.
3) Delivery vs. Payment
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. A third party custodian or the trust department of the City’s primary bank will hold securities. Evidence of safekeeping shall be in the form of safekeeping receipts and monthly statements reporting the securities held by the institution.

VI Authorized and Suitable Investments
1) Investment Types
Investment of City funds are restricted to the following instruments that shall mature within one year from the time of purchase unless otherwise stated:
a) U.S. Treasury bills.
b) U.S. Treasury notes or bonds.
c) Insured or fully collateralized certificates of deposit issued by a qualified Public Depository Institution of the State of California.
d) Money market mutual funds whose portfolios consist entirely of U.S. government securities and are rated at the highest letter or numerical rating from at least two of the three largest nationally recognized rating services, or which retain an Investment advisor meeting requirements specified in Government Code Section 53601(k)(2). e) State Treasurer’s Local Agency Investment Fund.
f) Overnight Government Securities (U.S. Treasuries, Agencies, and Instrumentalities) Investment Account managed by the City’s primary bank.
g) Overnight Commercial Paper Investment Account managed by the City’s primary bank. h) Overnight repurchase agreements managed by the City’s primary bank where the market value of the securities underlying the repurchase agreement is 102 percent or greater than the value of funds borrowed.
i) Commercial Paper rated a minimum of “P-1” by Moody’s and “A-1” by Standard and Poor’s, or equivalent, as provided by a nationally recognized rating agency, maturing not more that 180 days after the date of purchase. The issuer is a corporation organized and operating in the United States with assets in excess of $500 million.

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j) Prime Bankers’ Acceptances with a maximum term of 270 days and a rating of “P-a” by Moody’s and “A-1 +” by Standard and Poor’s or equivalent as provided by a nationally recognized rating agency issued within the U.S. by depository institutions. k) Investment Trust of California, a Joint Powers Authority, doing business as CalTRUST In all instances, the City will not purchase the aforementioned instruments by the use of leveraged or margin accounts or by taking short positions in any investment instrument; i.e., selling investments the City does not own.

Investments of funds held under a trust indenture may have maturities up to two years in duration. 2) Portfolio Diversification
The City will diversify use of investment instruments to avoid incurring unreasonable risks inherent in over investing in specific instruments, individual financial institutions or maturities.

DIVERSIFICATION BY INVESTMENTS
Maximum
Percent of
Portfolio
U.S. Treasury Obligations (bills, notes and bonds) 50%
Certificates of Deposit (CDs) Commercial Banks 50%
Certificates of Deposit (CDs) Savings and Loan 25%
State Treasurer’s Local Agency Investment Fund 100%
CalTRUST
Overnight investment accounts managed by
City’s primary bank
100%
50%
Commercial Paper 10%
Banker’s Acceptances 15%
Money Market Mutual Funds 15%

DIVERSIFICATION BY INSTITUTION/ISSUER
Maximum
Percent of
Portfolio
Certificates of Deposit (CDs) Commercial Banks 25%
Certificates of Deposit (CDs) Savings and Loan $250,000 maximum
If at any point the above-stated maximum percentage of
portfolio becomes out of compliance, the City Treasurer shall have 60 days to reallocate funds to become compliant.

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3) Maximum Maturities
Investment maturities for operating funds shall be scheduled to coincide with projected cash flow needs, taking into account large routine expenditures as well as considering sizable blocks of anticipated revenue.
4) Collateralization
Collateralization will be required on repurchase agreements in order to anticipate market changes and provide a level of security for all funds.

For certificates of deposits greater than $250,000, collateral will be required at 110% of principal for government securities collateral, and 150% of principal for first mortgage collateral. Certificates of deposits for $250,000 or less, inclusive or earned interest at maturity may be invested in any FDIC insured commercial bank or savings and loan accounts.

Collateral will always be held by an independent third party, or the trust departments of the City’s primary bank. A clearly marked evidence of ownership, such as safekeeping receipt and monthly statement of securities held must be provided to the City.

VII Competitive Selection of Investment Instruments
When purchasing or selling securities, the Treasurer shall select the security which provides the highest rate of return within the parameters of these policies and according to the current objectives and needs of the City’s portfolio. The Treasurer, at his discretion, may purchase investments through the investment or trust department of the City’s primary bank without soliciting proposal forms to other banks or broker/dealers. The City Treasurer may also purchase investments using a competitive process by soliciting proposals from the financial dealers in the “Qualified Institutions” list.

If a specific maturity date is required, either for cash flow purposes or for conformance to maturity guidelines, bids will be requested for instruments, which meet the maturity requirement. If no specific maturity is required, a market trend (yield curve) analysis will be conducted to determine which maturities would be most advantageous. Selection by comparison to a current market price may be utilized when, in the judgment of the Treasurer, competitive bidding would inhibit the selection process.

VIII Reporting
The Treasurer shall submit monthly investment reports to the City Council that summarizes recent market conditions, economic developments and anticipated investment conditions. The report shall summarize the investment strategies employed in the most recent quarter and describe the portfolio in terms of investment securities, maturities, risk characteristics and other pertinent features. The report shall explain the quarter’s total investment return and compare the return on LAIF and the 3-month bank CD rate published by the Federal Reserve. The report shall disclose all transactions during the quarter.

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As part of the City’s annual audit, the independent auditor shall evaluate investment performance and conduct an operations audit. The purpose of these examinations shall be to obtain suggestions for improved future performance, and to verify that the Treasurer has acted in accordance with this investment policy and written investment procedures.

IX Annual Investment Policy and Adoption
The City’s investment policy shall be annually reviewed and adopted by resolution of the City Council of the City of Laguna Hills, California. The policy and the related internal control procedures shall be reviewed annually by the City’s independent auditors, and any modifications to the policy must be approved by the City Council.

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Appendix A – Glossary of Terms
ACCRUED INTEREST: Interest earned but not yet received.

ACTIVE DEPOSIT: Funds which are immediately required for disbursement.

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

AMORTIZATION: An accounting practice of gradually decrease/increasing an asset’s book value by spreading its depreciation/accretion over a period of time.

ANNUAL COMPREHENSIVE FINANCIAL REPORT (ACFR): The official annual report of the City. It is the set of financial statements for a state, municipality or other governmental entity that comply with the accounting requirements established by the Governmental Accounting Standards Board (GASB). It includes combined statements prepared in conformity with Generally Accepted Accounting Principles (GAAP). It also includes supporting schedules necessary to demonstrate compliance with finance-related legal and contractual provisions, extensive introductory material, and a detailed Statistical Section.

ASKED PRICE: The price at which securities are offered.

BANKERS’ ACCEPTANCE: a draft or bill exchange accepted by a bank or trust company. The accepting institution guarantees payment of the bill, as well as the issuer.

BASIS POINT: One one-hundredth of one percent (.01%)
BEAR MARKET: A period of generally pessimistic attitudes and declining market prices.

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

BID PRICE: The price offered by a buyer of securities. (When you are selling securities, you ask for a bid). See Offer Price and Asked Price.

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

BOND EQUIVALENT YEILD: The basis on which yields on notes and bonds are quoted.

BOOK VALUE (COST VALUE): The purchase price at which a debt security is shown on the holder’s balance sheet. Book value is the purchase price less amortization of premium or plus accretion of discount.

BROKER: An individual or firm that brings buyers and sellers together for commission.

BULL MARKET: A period of time of generally optimistic attitudes and increasing market prices.

CALLABLES: Securities that the issuer has the right to redeem prior to maturity.

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CERTIFICATE OF DEPOSIT (CD): A time deposit with a specific maturity evidenced by a certificate. Large denomination CD’s are typically negotiable. CD’s may be eligible for FDIC insurance.

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

CONSTANT MATURITY TREASURY (CMT): An average yield of a specific Treasury maturity sector for a specific time frame. This is a market index for reference of past direction of interest rates for a given Treasury maturity range.

COST VALUE (BOOK VALUE): The purchase price at which a debt security is shown on the holder’s balance sheet.

COUPON: a) The annual rate of interest that a bond’s issuer promises to pay the bondholder on a bond’s face value; b) a certificate attached to a bond evidencing interest due on a payment date.

CREDIT ANALYSIS: A critical review and appraisal of the economic and financial conditions or of the ability to meet debt obligations.

CURRENT YIELD: The interest paid on an investment expressed as a percentage of the current price of the security.

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

DEALER: A dealer, as opposed to a broker, acts as a principal in all transactions, buying and selling for his own account.

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

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

DEMAND DEPOSIT ACCOUNT: Accounts whose balance is available to meet immediate cash needs. Cash withdrawals can be made at any time.

DERIVATIVES: (1) Financial instruments whose return profile is linked to, or derived from, the movement of one or more underlying index(s) or security(s), and may include a leveraging factor, or (2) financial contracts based upon notional amounts whose value is derived from an underlying index or security (interest rates, foreign exchange rates, equities or commodities). Moreover, financial products that are dependent for their value on an underlying financial instrument, a commodity, or an index representing values of groups of such instruments or assets.

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

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

DIVERSIFICATION: Dividing investment funds among a variety of securities offering independent returns.

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

FANNIE MAE: Trade name for the Federal National Mortgage Association (FNMA). See FNMA.

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

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

FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC): A federal agency that insures bank deposits, currently up to $250,000 per entity; Insurance provided to customers of a subscribing bank, which guarantees deposits to a set limit.

FEDERAL FUNDS RATE: The rate of interest at which Federal funds are traded. This rate is currently pegged by the Federal Reserve through open-market operations.

FEDERAL HOME LOAN BANKS (FHLB): Government sponsored wholesale banks, which lend funds and provide correspondent banking services to member commercial banks, thrift institutions, credit unions and insurance companies. The mission of the FHLBs is to liquefy the housing related assets of its members who must purchase stock in their district bank.

FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC): The FHLMC was created under the Federal Home Loan Mortgage Act, Title III of Emergency Home Finance Act of 1970, as a stockholder owned government-sponsored enterprise. Freddie Mac, as the corporation is called, is charged with providing stability and assistance to the secondary home mortgage market by buying first mortgages and participation interests and reselling these securities in the form of guaranteed mortgage securities. Although agency obligations are not explicitly guaranteed by the federal government, the rating agencies believe that in the unlikely event of financial difficulties, the federal government will support the agency to the extent necessary to provide for full and timely payment on their securities.

FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA): FNMA, like GNMA, was chartered under the Federal National Mortgage Association Act in 1938. FNMA is a federal corporation working under the auspices of the Department of Housing and Urban Development (HUD). Fannie Mae, as the corporation is called, is a private stockholder-owned corporation. The corporation’s purchases included a variety of adjustable mortgages and second loans, in addition to fixed-rate mortgages. FNMA’s securities are also highly liquid and are widely accepted. FNMA assumes and guarantees that all security holders will receive timely payment of principal and interest.

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

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

FINANCIAL ADVISOR: A firm of bank that acts in a financial advisory capacity with respect to a new issue of municipal securities pursuant to a written contract.

FISCAL AGENT/SPONSOR: a) A fiscal agent, fiscal sponsor, or financial agent is a proxy that manages fiscal matters on behalf of another party. b) A financial institution with trust powers which acts in a fiduciary capacity for the benefit of the bondholders in enforcing the terms of the bond contract. A fiscal agent may assist in the redemption of bonds or coupons at maturity, disbursing dividends, and handling tax issues. For example, the United States Federal Reserve is the fiscal agent of the federal government of the United States.

FREDDIE MAC: The trade name for the Federal Home Loan Mortgage Corporation. See FHLMC.

GINNIE MAE: The trade name for the Government National Mortgage Association. See GNMA.

GOVERNMENT ACCOUNTING STANDARDS BOARD: The independent organization that establishes and improves standards of accounting and financial reporting for U.S. state and local governments.

GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA): Securities influencing the volume of bank credit guaranteed by GNMA and issued by mortgage bankers, commercial banks, savings and loan associations, and other institutions. Security holder is protected by the full faith and credit of the U.S.

Government. Ginnie Mae, as these securities are called, are backed by the FHA, VA, or FmHA mortgages.

The term “pass-throughs” is often used to describe Ginnie Maes.

INACTIVE DEPOSITS: Funds not immediately needed for disbursements.

INTEREST RATE: The annual yield earned on an investment, expressed as a percentage.

INVESTMENT AGREEMENTS: An agreement with a financial institution to borrow public funds subject to certain negotiated terms and conditions concerning collateral, liquidity and interest rates.

LIQUIDITY: Refers to the ability of an asset to be converted easily and rapidly into cash without a substantial loss of value. In the money market, a security is said to be liquid if the spread between bid and asked prices is narrow and reasonable size can be done on these quotes.

LOCAL AGENCY INVESTMENT FUND (LAIF): The Local Agency Investment Fund (LAIF), is a voluntary program created by statute; began in 1977 as an investment alternative for California's local governments and special districts and it continues today under the California State Treasurer's administration. The enabling legislation for the LAIF is Section 16429.1 et seq. of the California Government Code. This program offers local agencies the opportunity to participate in a major portfolio, which invests hundreds of millions of dollars, using the investment expertise of the State Treasurer's Office investment staff at no additional cost to the taxpayer.

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This in-house management team is comprised of civil servants. The Local Investment Advisory Board (LIAB) provides oversight for LAIF. The LAIF is part of the Pooled Money Investment Account (PMIA).

LOCAL GOVERNMENT INVESTMENT POOL (LGIP): The aggregate of all funds from political subdivisions that are placed in the custody of the State Treasurer for investment and reinvestment.

MARKET VALUE: The price at which a security is trading and could presumably be sold.

MASTER REPURCHASE AGREEMENT: A written contract covering all future transactions between the parties repurchase/reverse repurchase agreement that establishes each party’s in the transactions. A master agreement will often specify, among other things, the right of the buyer-lender to liquidate the underlying securities in the event of default by the seller borrower.

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

MONEY MARKET MUTUAL FUNDS: Open-ended mutual fund that invests in commercial paper, bankers’ acceptances, repurchase agreements, government securities, certificates of deposit, and other highly liquid and safe securities, and pays money market rates of interest. The fund’s net asset value remains a constant $1/share, with the interest rate increasing or decreasing.

NATIONAL RECOGNIZED STATISTICAL RATING ORGANIZATION (NRSRO): A rating organization designated by the SEC as being nationally recognized.

NEW ISSUE: Term used when a security is originally “brought” to market.

OFFER PRICE: The price at which a broker/dealer/seller will offer securities to an investor. See Asked Price and Bid Price.

OPEN MARKET OPERATIONS: Purchases and sales of government and certain other securities in the open market by the New York Federal Reserve Bank as directed by the FOMC, in order to influence the volume of money and credit in the economy. Purchases inject reserves into the bank system and stimulate growth of money and credit; Sales have the opposite effect. Open market operations are the Federal Reserve’s most important and most flexible monetary policy tool. Under the Federal Reserve Act, the Fed uses purchases and sales of government and Federal Agency securities to add to or subtract from commercial bank reserves.

Goals are to sustain economic growth, high employment, and reasonable price stability.

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

PERFECTED DELIVERY: Refers to an investment where the actual security or collateral is held by an independent third party representing the purchasing entity.

POOLED MONEY INVESTMENT ACCOUNT (PMIA): The PMIA began in 1955 and oversight is provided by the Pooled Money Investment Board (PMIB) and an in-house Investment Committee. The Investment Division of the State Treasurer’s Office manages the PMIA under statutory authority granted by California Government Code sections 16430 and 16480.4. The Pooled Money Investment Board governs the PMIA. The State Treasurer chairs the Board, which also includes the State Controller and the State Director of Finance. Through PMIA, the State Treasurer invests taxpayers’ money to manage the State’s cash flow and strengthen the

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financial security of local governmental entities. The PMIA has three primary sources of funds: the State general fund; special funds held by State agencies; and moneys deposited by cities, counties and other entities into the Local Agency Investment Fund (LAIF).

PORTFOLIO: Collection of securities held by an investor.

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

PRUDENT PERSON RULE: An investment standard. In some states the law requires that a fiduciary, such as a trustee, may invest money only in a list of securities selected by the custody state - the so called legal list. In other states, the trustee may invest in a security if it is one which would be bought by a prudent person of discretion and intelligence who is seeking a reasonable income and preservation of capital, PURCHASE DATE: The date in which a security is purchased for settlement on that or a later date.

QUALIFIED PUBLIC DEPOSITORIES: A financial institution which does not claim exemption from the payment of any sales or compensating use or ad valorem taxes under the laws of this state, which has segregated for the benefit of the commission eligible collateral having a value of not less than its maximum liability and which has been approved by the Public Deposit Protection Commission to hold public deposits.

RATE OF RETURN: The yield obtainable on a security based on its purchase price or its current market price.

This may be the amortized yield to maturity on a bond or the current income return.

REPURCHASE AGREEMENT (RP or REPO): A holder of securities sells these securities to an investor with an agreement to repurchase them at a fixed price on a fixed date. The security “buyer” in effect lends the “seller” money for the period of the agreement, and the terms of the agreement are structured to compensate for this. Dealers use RP extensively to finance their positions. Exception: When the Fed is said to do be doing RP, it is lending money, that is, increasing bank reserves.

REVERSE REPURCHASE AGREEMENT (Reverse REPO): A reverse-repurchase agreement (reverse repo) involves an investor borrowing cash from a financial institution in exchange for securities. The investor agrees to repurchase the securities at a specified date for the same cash value plus an agreed upon interest rate.

Although the transaction is like a repo, the purpose of entering into a reverse repo is quite different. While a repo is a straightforward investment of public funds, the reverse repo is borrowing.

RISK: Degree of uncertainty of return on an asset.

SAFEKEEPING: a) The service provided by banks and trust companies for clients when the bank or trust company stores the securities, takes in coupon payments, and redeems issues at maturity b) A service to customers rendered by banks for a fee whereby securities and valuables of all types and descriptions are held in a bank’s vaults for protection. See custody.

SEC RULE 15(C)3-1: See Uniform Net Capital Rule. Also called Net Capital Rule and Net Capital Ratio.

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

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SECURITIES AND EXCHANGE COMMISSION (SEC): Agency created by Congress to protect investors in securities transactions by administering securities legislation.

SETTLEMENT DATE: The date at which a trade is cleared by delivery of securities against funds.

SPREAD: a) The yield or price difference between the bid and offer on an issue. b) The yield or price difference between issues.

STRUCTURED NOTES: Notes issued by Government Sponsored Enterprises (FHLB, FNMA, etc.) and Corporations that have imbedded options (e.g., call features, step-up coupons, floating rate coupons, derivatives-based returns) into their debt structure. Their market performance is impacted by the fluctuation of interest rates, the volatility of the imbedded options, and shifts in the shape of the yield curve.

SWAP: The sale of one issue and the simultaneous purchase of another for some perceived advantage.

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

TREASURY BONDS: Long-term coupon-bearing U.S. Treasury securities issued as direct obligations of the U.S. Government and having initial maturities of more than ten (10) years.

TREASURY NOTES: Medium-term coupon-bearing U.S. Treasury securities issued as direct obligations of the U.S. Government and having initial maturities from two (2) to ten (10) years.

TRUST COMPANY: A trust company is a legal entity that acts as a fiduciary or agent on behalf of a person or business, for the purpose of administration, management and the eventual transfer of assets to a beneficial party. The trust company acts as a custodian for trusts, estates, custodial arrangements, asset management, stock transfer, beneficial ownership registration and other related arrangements. See Trustee.

TRUSTEE: A financial institution with trust powers that act in a fiduciary capacity for the benefit of the bondholders in enforcing the terms of the bond contract. See Trust Company.

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

UNIFORM NET CAPITAL RULE: Securities and Exchange Commission requirement that member firms as well as nonmember broker-dealers in securities maintain a maximum ratio of indebtedness to liquid capital of 15 to 1; Also called SEC RULE 15(C)3-1, Net Capital Rule and Net Capital Ratio. Indebtedness covers all money owed to a firm, including margin loans and commitments to purchase securities, one reason new public issues are spread among members of underwriting syndicates. Liquid capital includes cash and assets easily converted into cash.

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

YIELD CURVE: Yield calculations of various maturities at a given time to observe spread difference.

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II Scope
This investment policy applies to the investment of all funds of the City and the City of Laguna Hills Public Improvement Corporation, including the following:

General Fund
Special Revenue Funds
Capital Projects Funds
Funds Held Under Trust Indenture
These funds are accounted for in the City’s Annual Comprehensive Financial Report.

Investments under the trust indenture will be held separately and made in accordance with the indenture requirements.

Credit Risk may be mitigated by:

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INVESTMENT AND PORTFOLIO POLICIES
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budgetary and economic cycles, commensurate with the City’s investment risk constraints and the cash flow characteristics of the portfolio.

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INVESTMENT AND PORTFOLIO POLICIES
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DIVERSIFICATION BY INVESTMENTS
Maximum
Percent of
Portfolio
U.S. Treasury Obligations (bills, notes and bonds) 50%
Certificates of Deposit (CDs) Commercial Banks 50%
Certificates of Deposit (CDs) Savings and Loan 25%
State Treasurer’s Local Agency Investment Fund 10075%
CalTRUST
Overnight investment accounts managed by
City’s primary bank
10075%
50%
Commercial Paper 10%
Banker’s Acceptances 15%
Money Market Mutual Funds 15%

DIVERSIFICATION BY INSTITUTION/ISSUER
Maximum
Percent of
Portfolio
Certificates of Deposit (CDs) Commercial Banks 25%
Certificates of Deposit (CDs) Savings and Loan $250,000 maximum

If at any point the above-stated maximum percentage of
portfolio becomes out of compliance, the City Treasurer shall have 60 days to reallocate funds to become compliant.

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CITY OF LAGUNA HILLS

INVESTMENT AND PORTFOLIO POLICIES
20243

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CITY OF LAGUNA HILLS

INVESTMENT AND PORTFOLIO POLICIES
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Attachment: Proposed 2024 Investment Policy (red lined version) (3349 : 2024 Investment Policy)