Laguna Woods City Council
September 21, 2022

CITY of LAGUNA WOODS

CITY COUNCIL
AGENDA
Regular Meeting
Wednesday, September 21, 2022
2:00 p.m.

Laguna Woods City Hall
24264 El Toro Road
Laguna Woods, California 92637
Cynthia Conners
Mayor Pro Tem
Noel Hatch
Councilmember
Carol Moore
Mayor
Shari L. Horne
Councilmember
Ed H. Tao
Councilmember
Welcome to a meeting of the Laguna Woods City Council!
This meeting may be recorded, televised, and made publicly available.

Public Comments: Persons wishing to address the City Council are requested to complete and submit a speaker card to City staff. Speaker cards are available near the entrance to the meeting location. Persons wishing to address the City Council on an item appearing on this agenda will be called upon at the appropriate time during the item’s consideration.

Persons wishing to address the City Council on an item not appearing on the agenda will be called upon during the “Public Comments” item. Persons who do not wish to submit a Speaker Card, or who wish to remain anonymous, may indicate their desire to speak from the floor. Speakers are requested, but not required, to identify themselves.

Americans with Disabilities Act (ADA): It is the intention of the City to comply with the ADA. If you need assistance to participate in this meeting, please contact either the City Clerk’s Office at (949) 639-0500/TTY (949) 639-0535 or the California Relay Service at (800) 735-2929/TTY (800) 735-2922. The City requests at least two business days’ notice in order to effectively facilitate the provision of reasonable accommodations.

REGULAR MEETING SCHEDULE
The Laguna Woods City Council meets regularly on the third Wednesday of each month at 2 p.m.

AGENDA POSTING AND AVAILABILITY
Regular and Adjourned Regular Meetings: Pursuant to California Government Code Section 54954.2 of the Ralph M. Brown Act, the City of Laguna Woods posts agendas at Laguna Woods City Hall, 24264 El Toro Road, Laguna Woods, California 92637; on the City’s website (www.cityoflagunawoods.org); and, at other locations designated by Resolution No. 17-30, at least 72 hours in advance of regular and adjourned regular meetings. Agendas and agenda materials are available at Laguna Woods City Hall during normal business hours and on the City’s website. Printed copies of agendas and agenda materials are provided at no charge in advance of meetings. After meetings have occurred, a per page fee is charged for printed copies.

Special and Emergency Meetings: Agenda posting and availability for special and emergency meetings is conducted pursuant to all applicable provisions of California Government Code (Ralph M. Brown Act).

AGENDA DISTRIBUTION LISTS
Electronic Distribution: The City of Laguna Woods provides notification of agenda posting and availability via email. To register to receive email notifications, please email [email protected] or contact the City Clerk’s Office at (949) 639-0500/TTY (949) 639-0535. Please note that the City is not responsible for, and makes no guaranties or warranties related to, the transmission or receipt of email notifications.

Mail Distribution: The City of Laguna Woods is able to mail agendas and/or agenda materials if provided with advance payment for postage and printing (if applicable). To request mail distribution, please email [email protected] or contact the City Clerk’s Office at (949) 639-0500/TTY (949) 639-0535.

FOR ADDITIONAL INFORMATION
For additional information, please contact the City Clerk’s Office at (949) 639-0500/TTY (949) 639-0535, [email protected], or 24264 El Toro Road, Laguna Woods, California 92637.

AFFIDAVIT OF POSTING

STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.

CITY OF LAGUNA WOODS )
I, Christopher Macon, City Manager, City of Laguna Woods, hereby certify under penalty of perjury that this agenda was posted at Laguna Woods City Hall, 24264 El Toro Road, Laguna Woods, California 92637; on the City’s website (www.cityoflagunawoods.org); and, at other locations designated by Resolution No. 17-30, pursuant to California Government Code Section 54954.2 of the Ralph M. Brown Act. /s/ Christopher Macon 9/16/22
CHRISTOPHER MACON, City Manager Date
Laguna Woods City Council Agenda  09/21/2022 Regular Page 3 of 10 NOVEL CORONAVIRUS (COVID-19) NOTICE
Please exercise caution when attending City Council meetings. If you attend this meeting, please abide by all applicable state and local public health orders.

OPTIONS FOR PUBLIC COMMENTS

1. Attend the meeting in-person.

2. Submit public comments in writing. Written public comments may be submitted via email ([email protected]) or by mail (Laguna Woods City Hall, 24264 El Toro Road, Laguna Woods, CA 92637), provided that they are received by the City prior to 2:00 p.m. on the day of the meeting.

Written public comments may be read or summarized to the City Council at the meeting, and parties submitting comments should be aware that their email addresses and any information submitted may be disclosed or become a matter of public record. No party should expect privacy of such information.

3. Make public comments by telephone. Dial (669) 444-9171. When prompted enter the following meeting ID: 885 8206 6316 followed by pound (#) and the following meeting passcode: 200142 followed by pound (#). When an item you wish to comment on is discussed, press *9 on your telephone to raise your hand. When it is your turn, you will be unmuted and able to speak.

Please note that your telephone number will be visible to the City. No party should expect privacy of such information.

4. Make public comments by computer.
• Visit www.zoom.us
• Click on “Join a Meeting” toward the top right of the webpage • Enter the following meeting ID: 885 8206 6316
• Open the Zoom application following the on-screen prompts • Enter the following meeting password: 200142
• Enter a name and email address as required by Zoom
When an item you wish to comment on is discussed, click on “Raise Hand.” When it is your turn, you will be unmuted and able to speak. Please note that information you enter into Zoom will be visible to the City. No party should expect privacy of such information.

I. CALL TO ORDER
Introductory Note: Members of the public wishing to address the City Council on items appearing on this agenda are advised to indicate their interest in doing so at the time an item is considered by notifying City staff if present in-person, pressing *9 on their telephone if participating by telephone, or clicking on “Raise Hand” if participating by computer via Zoom. Members of the public wishing to address the City Council on items not appearing on this agenda may do so during Item V.

II. ROLL CALL
III. PLEDGE OF ALLEGIANCE
IV. PRESENTATIONS AND CEREMONIAL MATTERS

4.1 Presentation Regarding Property Tax – Shari Freidenrich, CPA, Orange County Treasurer
(agendized by Mayor Moore)
Recommendation: Receive and file.

4.2 Presentation Regarding Complex Coordinated Terrorist Attack (CCTA) Exercise – Orange County Sheriff’s Department
(agendized by Mayor Moore)
Recommendation: Receive and file.

4.3 Presentations Regarding Driving Out Darkness: Orange County Summit on Antisemitism and Hate & Orange County Human
Relations Commission’s Orange County 2021 Hate Crime Report (agendized by Mayor Moore)
Recommendation: Receive and file.

4.4 Hunger Action Month – September 2022
Recommendation: Approve the proclamation.

4.5 International Day of Peace – September 21, 2022
(agendized by Councilmember Horne)
Laguna Woods City Council Agenda  09/21/2022 Regular Page 5 of 10 Recommendation: Approve the proclamation.

4.6 Fire Prevention Week – October 9-15, 2022
Recommendation: Approve the proclamation.

4.7 City Hall/Public Library Project Update
Recommendation: Receive and file.

V. PUBLIC COMMENTS ON NON-AGENDA ITEMS
About Public Comments on Non-Agenda Items: This is the time and place for members of the public to address the City Council on items not appearing on this agenda. To indicate interest, please notify City staff if present in-person, press *9 on your telephone if participating by telephone, or click on “Raise Hand” if participating by computer via Zoom. Pursuant to state law, the City Council is unable to take action on such items, but may engage in brief discussion, provide direction to City staff, or schedule items for consideration at future meetings.

VI. CONSENT CALENDAR
About the Consent Calendar: All items listed on the Consent Calendar are considered routine and will be enacted by one vote. There will be no separate discussion of these items unless a member of the City Council, City staff, or member of the public requests that specific items be removed from the Consent Calendar for separate discussion and consideration of action.

6.1 City Council Minutes
Recommendation: Approve the City Council meeting minutes for the regular meeting on June 15, 2022 and the regular meeting on July 20, 2022.

6.2 City Treasurer’s Report
Recommendation: Receive and file the City Treasurer’s Report for the month of August 2022.

6.3 Warrant Register
Recommendation: Approve the warrant register dated September 21, 2022 in the amount of $638,338.30.

6.4 Teleconferencing for Meetings
Recommendation: Adopt a resolution titled:

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF LAGUNA WOODS, CALIFORNIA, ALLOWING FOR

THE CONTINUED USE OF TELECONFERENCING FOR
MEETINGS DURING THE COVID-19 STATE OF

EMERGENCY, PURSUANT TO CALIFORNIA ASSEMBLY
BILL 361 (2021-2022)

6.5 Fiscal Years 2021-23 Budget Adjustments
Recommendation: Adopt a resolution titled:

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF LAGUNA WOODS, CALIFORNIA, ADJUSTING THE

ASSIGNED RESERVE BALANCES FOR THE PAID LEAVE

CONTINGENCY RESERVE AND THE GENERAL FUND
CONTINGENCY RESERVE FOR FISCAL YEAR 2022-23

6.6 Investment of Financial Assets Policy
Recommendation: Adopt a resolution titled:

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF LAGUNA WOODS, CALIFORNIA, REVIEWING AND

ADOPTING AN ANNUAL STATEMENT OF THE

INVESTMENT POLICY, ADOPTING AN INVESTMENT
POLICY, AND RENEWING THE CITY COUNCIL’S

DELEGATION OF INVESTMENT AUTHORITY TO THE

CITY TREASURER PURSUANT TO CALIFORNIA
GOVERNMENT CODE SECTION 53607

6.7 Credit Card, Debit Card, and Prepaid Card Payment Processing Recommendation:

1. Eliminate the $700 per transaction limit for payments that can Laguna Woods City Council Agenda  09/21/2022 Regular Page 7 of 10 be accepted by credit card, debit card, and prepaid card.

AND

2. Authorize the City Manager to impose transaction limits for payments that can be accepted by credit card, debit card, and prepaid card based on economic conditions, the needs of the City, or in the interest of the efficient, effective, or economical conduct of City business.

6.8 Arborist and Tree Risk Assessment Services
Recommendation: Approve an extension of the agreement with Monarch Environmental Services for arborist and tree risk assessment services and authorize the City Manager to execute the extension, subject to approval as to form by the City Attorney.

6.9 Conflict of Interest Code
Recommendation: Adopt a resolution titled:

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF LAGUNA WOODS, CALIFORNIA, DETERMINING

THAT NO CHANGES IN THE CONFLICT OF INTEREST
CODE ADOPTED BY RESOLUTION NO. 18-27 ARE

NECESSARY FOLLOWING THE REVIEW REQUIRED BY
CALIFORNIA GOVERNMENT CODE SECTION 87306.5

6.10 Ad Hoc Anti-Hate Advisory Council Committee
(agendized by Mayor Pro Tem Conners and Councilmember Horne) Recommendation: Extend the end of the term of the Ad Hoc AntiHate Advisory Council Committee from September 30, 2022 to December 29, 2022.

VII. PUBLIC HEARINGS

7.1 Sign Regulations

Recommendation:

1. Receive staff report.

AND

2. Open public hearing.

AND

3. Receive public testimony.

AND

4. Close public hearing.

AND

5. Approve the introduction and first reading of an ordinance – read by title with further reading waived – titled:

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY

OF LAGUNA WOODS, CALIFORNIA, AMENDING
SECTIONS 13.20.030, 13.20.130, AND 13.20.160 OF THE

LAGUNA WOODS MUNICIPAL CODE RELATED TO

SIGN REGULATIONS, AND DETERMINING AND

CERTIFYING THAT THE ORDINANCE IS EXEMPT FROM

THE CALIFORNIA ENVIRONMENTAL QUALITY ACT
VIII. CITY COUNCIL BUSINESS

8.1 New Orange County Fire Authority Fire Station
Recommendation: Approve, in non-binding concept, the long-term lease of approximately 0.32 acres of the City Centre Park property (24121 Moulton Parkway, Laguna Woods, CA 92637; Assessor’s Parcel Number: 616-021-18) for use as a new Orange County Fire Authority fire station and authorize the City Manager and City Attorney to take actions and incur costs necessary to:

Laguna Woods City Council Agenda  09/21/2022 Regular Page 9 of 10 (a) Comply with applicable state laws regarding the lease of park property for non-park purposes, and other state laws as may be determined to apply;
(b) Unencumber the property of deed restrictions that would otherwise preclude the construction and operation of a fire station;
(c) Negotiate – for future consideration by the City Council – agreements with the Orange County Fire Authority for the construction and operation of a fire station including, but not limited to, a long-term land-lease agreement;
(d) Partner with the Orange County Fire Authority to contact surrounding property owners to discuss a potential new fire station and solicit input on factors to be considered during any future design, construction, and operation;
(e) Coordinate with the Orange County Fire Authority on matters affecting the design of a fire station including, but not limited to, modifications and easements related to traffic control devices, medians, sidewalks, and other City property, and public access to the remaining portion of City Centre Park; and (f) Negotiate and enter into cost recovery agreements with the Orange County Fire Authority to reimburse the City for those costs associated with this project which are mutually agreed upon as the Orange County Fire Authority’s responsibility.

IX. CITY COUNCIL REPORTS AND COMMENTS
About City Council Reports and Comments: This is the time and place for members of the City Council to provide reports on meetings attended including, but not limited to, meetings of regional boards and entities to which they have been appointed to represent the City and meetings attended at the expense of the City pursuant to California Government Code Section 53232.3. Members of the City Council may also make other comments and announcements.

9.1 Coastal Greenbelt Authority
Mayor Pro Tem Conners; Alternate: Councilmember Tao

9.2 Orange County Fire Authority
Councilmember Hatch

9.3 Orange County Library Advisory Board
Mayor Moore; Alternate: Councilmember Tao

9.4 Orange County Mosquito and Vector Control District
Councilmember Horne

9.5 San Joaquin Hills Transportation Corridor Agency
Mayor Pro Tem Conners; Alternate: Mayor Moore

9.6 South Orange County Watershed Management Area
Mayor Moore; Alternate: Councilmember Hatch

9.7 Other Comments and Reports
X. CLOSED SESSION
XI. CLOSED SESSION REPORT
XII. ADJOURNMENT
Next Regular Meeting: Wednesday, October 19, 2022 at 2 p.m.

Laguna Woods City Hall
24264 El Toro Road, Laguna Woods, California 92637

4.1 PRESENTATION REGARDING PROPERTY TAX –

SHARI FREIDENRICH, CPA, ORANGE COUNTY

TREASURER
(AGENDIZED BY MAYOR MOORE)
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ITEM 4.1
Presentation Regarding Property Tax
Shari Freidenrich CPA, Orange County Treasurer –Tax Collector Property tax revenue is the City of Laguna Woods’ largest single source of revenue and accounts for approximately half of all General Fund Revenue. It has experienced steady growth each year since Fiscal Year 2013-2014.

Furthermore, COVID -19 had no significant impact on property tax revenue and as a result helped soften the negative effects of declining tax income As Property Tax Revenue is important to the City, it is meaningful that residents as well as Council Members understand the correlation between the tax, it’s impact on the City Budget as well as the general “financial health” of Property Tax Collections.

Shari Freidenrich – County Treasurer and also responsible for collecting the taxes.

Additionally, she is responsible for overseeing the County of Orange’s $10 billion investment pool and serves as a Trustee for the $20 billion Orange County Employee Retirement system.

Treasurer Freidenrich holds a Bachelor’s Degree from Washington State University in Business Administration with an emphasis in Accounting and graduated summa cum laude. She is a Certified Public Accountant (CPA) as well as a Certified California Municipal treasurer (CCMT), a Certified Public Finance Administrator (CPFA), a Certified Public Finance Investment Manager (CPFIM), and an Advanced Certified Public Finance Investment Manager (ACPFIM), Shari is a Past President for the Association of Public Treasurers of the United States and Canada, a Past President of the California Municipal Treasurer’s Association and is currently on the Board of Directors for the California Municipal Treasurer’s Association and is currently on the Board of Directors for the California Association of County Treasurers and Tax Collectors. She was elected to the Board of Governors for the Washington State University Foundation in 2014 and is currently serving on the Audit Committee, of which she is past chair.

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4.2 PRESENTATION REGARDING COMPLEX

COORDINATED TERRORIST ATTACK (CCTA)
EXERCISE – ORANGE COUNTY SHERIFF’S

DEPARTMENT
(AGENDIZED BY MAYOR MOORE)
(NO REPORT)
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4.3 PRESENTATIONS REGARDING DRIVING OUT
DARKNESS: ORANGE COUNTY SUMMIT ON

ANTISEMITISM AND HATE & ORANGE
COUNTY HUMAN RELATIONS COMMISSION’S
ORANGE COUNTY 2021 HATE CRIME REPORT
(AGENDIZED BY MAYOR MOORE)
(NO REPORT)
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4.4 HUNGER ACTION MONTH –
SEPTEMBER 2022
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ITEM 4.4
Proclamation
City of Laguna Woods
Hunger Action Month
September 2022
WHEREAS, food insecurity is a lack of access, at times, to enough food for an active, healthy life and limited or uncertain availability of nutritionally adequate foods; and WHEREAS, food insecurity may result in trade-offs between important basic needs, such as housing or medical bills, and purchasing nutritionally adequate foods; and WHEREAS, hunger, food and nutritional insecurity, and poverty are issues of vital concern in Orange County where 296,470 people face food insecurity, according to Feeding America’s Map the Meal Gap Study for 2020; and
WHEREAS, individuals throughout Orange County rely on food and meal services provided by organizations including Abound Food Care, Age Well Senior Services, the Community Action Partnership of Orange County’s OC Food Bank, Second Harvest Food Bank, South County Outreach, and others; and
WHEREAS, the City operates an edible food recovery program that assists commercial food generators with recovering edible food that would otherwise be disposed.

NOW, THEREFORE, BE IT RESOLVED that the Laguna Woods City Council does hereby proclaim September 2022 as “Hunger Action Month” in the City of Laguna Woods and encourages its residents to consider donating, volunteering, or otherwise supporting the efforts of food banks, food recovery organizations, and meals on wheels programs.

Dated this 21st day of September, 2022
______________________________ _______________________________ Carol Moore Attest: Yolie Trippy, CMC
Mayor City Clerk
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4.5 INTERNATIONAL DAY OF PEACE –
SEPTEMBER 21, 2022
(AGENDIZED BY COUNCILMEMBER HORNE)
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ITEM 4.5
Proclamation
City of Laguna Woods
International Day of Peace
September 21, 2022
WHEREAS, the issue of peace embraces the deepest hopes of all peoples and remains humanity’s guiding inspiration; and
WHEREAS, in 1981 the United Nations proclaimed the International Day of Peace be “devoted to commemorating and strengthening the ideals of peace both within and among all nations and peoples”; and WHEREAS, the United Nations expanded the observance of the International Day of Peace in 2001 to include the call for a day of global ceasefire and non-violence, and invited all nations and people to honor a cessation of hostilities for the duration of the Day; and WHEREAS, there is growing support within our City for the observance of the International Day of Peace, which affirms a vision of our world at peace, and fosters cooperation between individuals, organizations and nations; and
WHEREAS, global crises impel all citizens to work toward converting humanity’s noblest aspirations for world peace into the practical reality of a culture of peace for future generations.

NOW, THEREFORE, BE IT RESOLVED that the Laguna Woods City Council does hereby proclaim September 21, 2022 as “International Day of Peace” in the City of Laguna Woods and urge all government departments and agencies, organizations, schools, places of worship and individuals in our City to commemorate, in an appropriate manner, the International Day of Peace. This may include community service projects, cultural exhibits and performances, a moment of silence, ringing of bells, sharing the universal message ‘May Peace Prevail On Earth’ at noon, vigils, religious services in our places of worship, and other education and public awareness activities in order to help establish a global day of peace in our homes, our communities and between nations.

Dated this 21st day of September, 2022
______________________________ _______________________________ Carol Moore Attest: Yolie Trippy, CMC
Mayor City Clerk
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4.6 FIRE PREVENTION WEEK –
OCTOBER 9-15, 2022
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ITEM 4.6
Proclamation
City of Laguna Woods
Fire Prevention Week
October 9-15, 2022
WHEREAS, fire is a serious public safety concern both locally and nationally with an average of 358,500 homes experiencing a structure fire each year; and WHEREAS, while people are most at risk for fire-related injuries and death in the home, working smoke alarms can reduce the risk of death by more than half; and WHEREAS, Laguna Woods residents should install working smoke alarms on every level of the home, in the hallway outside the sleeping areas, and in each bedroom; check their smoke alarms monthly; replace batteries regularly; replace smoke alarms every 10 years; and, create and practice their home escape plans; and WHEREAS, the 2022 Fire Prevention Week theme, “Fire won’t wait. Plan your escape,” serves as a reminder for residents to learn the simple but important actions that can be taken to keep themselves and those around them safe from home fires.

NOW, THEREFORE, BE IT RESOLVED that the Laguna Woods City Council does hereby proclaim October 9-15, 2022 as “Fire Prevention Week” in the City of Laguna Woods and urges its residents to plan ahead and be fire safe.

Dated this 21st day of September, 2022
______________________________ _______________________________ Carol Moore Attest: Yolie Trippy, CMC
Mayor City Clerk
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4.7 CITY HALL/PUBLIC LIBRARY UPDATE
(NO REPORT)
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6.0 CONSENT CALENDAR SUMMARY
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ITEM 6.0
CC  09-21-2022 RM Consent Calendar Summary – AR Page 1 of 4 City of Laguna Woods
Agenda Report
TO: Honorable Mayor and City Councilmembers
FROM: Christopher Macon, City Manager
FOR: September 21, 2022 Regular Meeting
SUBJECT: Consent Calendar Summary
Recommendation
Approve all proposed actions on the September 21, 2022 Consent Calendar by single motion and City Council action.

Background
All items listed on the Consent Calendar are considered routine and will be enacted by one vote. There will be no separate discussion of these items unless a member of the City Council, staff, or the public requests that specific items be removed from the Consent Calendar for separate discussion and consideration of action.

Summary
The September 21, 2022 Consent Calendar contains the following items:

6.1 Approval of the City Council meeting minutes for the regular meeting on June 15, 2022 (Attachment A) and the regular meeting on July 20, 2022 (Attachment B).

6.2 Approval of a motion to receive and file the City Treasurer’s Report for the month of August 2022.

6.3 Approval of the warrant register dated September 21, 2022 in the amount of $638,338.30. A list of warrants is included in the agenda packet; detailed ITEM 6.0
Consent Calendar Summary – AR Page 2 of 4 CC  09-21-2022 RM information about individual warrants is available at or from City Hall.

6.4 Adoption of a resolution allowing for the continued use of teleconferencing for meetings during the COVID-19 State of Emergency, pursuant to California Assembly Bill 361 (2021-2022). The proposed resolution includes the findings required by California Government Code Section 54953(e)(3) for meetings to continue to be held via teleconferencing.

6.5 Adoption of a resolution adjusting the assigned reserve balances for the Paid Leave Contingency Reserve and the General Fund Contingency Reserve for Fiscal Year 2022-23. The proposed resolution would adjust two assigned reserve balances for Fiscal Year 2022-23, in accordance with Administrative Policy 2.9 (Budgeting, Reserves, and Reporting). While two assigned reserve balances would change, the total of all three assigned reserve balances would remain $3,206,250. The City also has additional unassigned General Fund monies that can be used for reserve-type purposes.

6.6 Adoption of a resolution reviewing and adopting an annual statement of the investment policy, adopting an investment policy, and renewing the City Council’s delegation of investment authority to the City Treasurer pursuant to California Government Code Section 53607. An agenda report is included with additional information.

6.7 [1] Elimination of the $700 per transaction limit for payments that can be accepted by credit card, debit card, and prepaid card.

AND
[2] Authorization for the City Manager to impose transaction limits for payments that can be accepted by credit card, debit card, and prepaid card based on economic conditions, the needs of the City, or in the interest of the efficient, effective, or economical conduct of City business.

The City began accepting credit card, debit card, and prepaid card payments in February 2020. At the time, there was uncertainty regarding the number and amount of transactions that customers would choose to make using those payment methods and, in turn, uncertainty regarding the City’s processing costs. A $700 per transaction limit was established to manage costs.

ITEM 6.0
CC  09-21-2022 RM Consent Calendar Summary – AR Page 3 of 4 After more than two and a half years of accepting credit card, debit card, and prepaid card payments, staff recommends that the City Council eliminate the $700 per transaction limit to improve customer service and internal controls related to cash handling. Most transactions are now paid using credit cards, debit cards, and prepaid cards, and the City’s budget can accommodate the additional processing fees without the need for supplemental appropriations (additional processing fees are estimated at $2,500 per year; total estimated processing fees would increase from $9,500 to $12,000 per year, a portion of which is recovered through user fees). In addition to improving customer service by better meeting customer expectations for payment methods, eliminating the $700 per transaction limit would also reduce the amount of cash handled by staff. Should circumstances change in the future, staff also recommends that the City Manager be authorized to impose transaction limits for payments that can be accepted by credit card, debit card, and prepaid card based on economic conditions, the needs of the City, or in the interest of the efficient, effective, or economical conduct of City business.

6.8 Approval of an extension of the agreement with Monarch Environmental Services for arborist and tree risk assessment services and authorization for the City Manager to execute the extension, subject to approval as to form by the City Attorney. The proposed extension is for a three-month period from October 1, 2022 through December 31, 2022 with no increase in rates or other changes to terms and conditions. Staff is currently evaluating proposals received in response to a recent Request for Proposals (“RFP”) for arborist and tree risk assessment services, and anticipates making a recommendation to the City Council in the coming months.

6.9 Adoption of a resolution determining that no changes in the conflict of interest code adopted by Resolution No. 18-27 are necessary following the review required by California Government Code Section 87306.5. The City is required to review conflict of interest codes at least every even-numbered year and identify whether any changes in conflict of interest codes are necessitated by changed circumstances by October 1 of the same year. Staff has reviewed the existing conflict of interest code (Attachment B) and determined that there are no changed conditions that necessitate changes.

Staff recommends that the City Council review the existing conflict of interest code and, if no changed conditions are identified that necessitate changes, adopt the proposed resolution (Attachment A).

ITEM 6.0
Consent Calendar Summary – AR Page 4 of 4 CC  09-21-2022 RM

6.10 (agendized by Mayor Pro Tem Conners and Councilmember Horne) Extension of the end of the term of the Ad Hoc Anti-Hate Advisory Council Committee from September 30, 2022 to December 29, 2022. The City Council appointed Mayor Pro Tem Conners and Councilmember Horne to the Ad Hoc Anti-Hate Advisory Council Committee on June 15, 2022.

6.1 CITY COUNCIL MINUTES
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ITEM 6.1 – Attachment A
June 15, 2022 1 City Council Regular Meeting Minutes

CITY OF LAGUNA WOODS CALIFORNIA

CITY COUNCIL MINUTES

REGULAR MEETING
June 15, 2022
2:00 P.M.

Laguna Woods City Hall
24264 El Toro Road
Laguna Woods, California 92637

I. CALL TO ORDER
Mayor Moore called the Regular Meeting of the City Council of the City of Laguna Woods to order at 2:03 p.m.

II. ROLL CALL
COUNCILMEMBER: PRESENT: Hatch, Horne, Tao, Conners, Moore ABSENT: -
All councilmembers participated in-person at the meeting location.

STAFF PRESENT: City Manager Macon, City Attorney Patterson, City Clerk Trippy All staff participated in-person at the meeting location.

III. PLEDGE OF ALLEGIANCE
A member of the public led the pledge of allegiance.

IV. PRESENTATIONS AND CEREMONIAL MATTERS

4.1 Elder Abuse Awareness Month – June 2022
City Clerk Trippy read the proclamation.

Councilmembers made comments.

Moved by Mayor Pro Tem Conners, seconded by Councilmember Horne, and carried unanimously on a 5-0 vote, to approve the proclamation.

4.2 Gun Violence Awareness Month – June 2022
City Clerk Trippy read the proclamation.

Councilmembers made comments.

ITEM 6.1 – Attachment A
June 15, 2022 2 City Council Regular Meeting Minutes
A member of the public and Mayor Moore made comments regarding the sound quality in the Council Chambers.

Robert Cunningham, resident, made comments.

Mayor Moore briefly responded to the public comments.

Moved by Mayor Pro Tem Conners, seconded by Councilmember Horne, and carried unanimously on a 5-0 vote, to approve the proclamation.

4.3 Pride Month – June 2022
City Clerk Trippy read the proclamation.

Charlie Becker, resident, made comments.

Gregg Boyd, Rainbow Club of Laguna Woods Village, made comments.

Councilmembers made comments.

Ramesh Joshi, resident, made comments and responded to a question from Mayor Pro Tem Conners.

Wendy Burry, resident, made comments.

Councilmembers made comments.

Moved by Councilmember Horne, seconded by Councilmember Tao, and carried unanimously on a 5-0 vote, to approve the proclamation.

4.4 City Hall/Public Library Project Update
City Manager Macon provided an update and answered related questions.

Rebeca Gilad, resident, made comments.

Mayor Moore made comments.

Mayor Moore called for a brief recess.

The meeting was called back to order at 3:02 p.m.

V. PUBLIC COMMENTS ON NON-AGENDA ITEMS
Robert Cunningham, resident, expressed concerns regarding election signs.

ITEM 6.1 – Attachment A
June 15, 2022 3 City Council Regular Meeting Minutes
City Attorney Patterson briefly responded to the public comments.

VI. CONSENT CALENDAR
Councilmember Hatch requested to pull Item 6.4 for separate discussion.

Moved by Councilmember Horne, seconded by Mayor Pro Tem Conners, and carried unanimously on a 5-0 vote, to approve Consent Calendar items 6.1 – 6.3 and 6.5 – 6.14.

6.1 City Council Minutes
Approved the City Council meeting minutes for the regular meeting on April 20, 2022.

6.2 City Treasurer’s Report
Received and filed the City Treasurer’s Report for the month of May 2022.

6.3 Warrant Register
Approved the warrant register dated June 15, 2022 in the amount of $474,688.22.

6.5 Administrative Services for Employee Benefit Plans
Approved an agreement with Navia Benefit Solutions, Inc. for administrative services for certain employee benefit plans maintained by the City and authorized the City Manager to execute the agreement subject to approval as to form by the City Attorney.

6.6 Arborist and Tree Risk Assessment Services
Approved an extension of the agreement with Monarch Environmental Services for arborist and tree risk assessment services and authorized the City Manager to execute the extension, subject to approval as to form by the City Attorney.

6.7 City Engineering and Traffic Operations Services

1. Waived the provisions set forth in Laguna Woods Municipal Code Section 3.06.080(c) related to competitive bidding.

AND

2. Approved an extension of the agreement with CivilSource, Inc. for city engineering and traffic operations services and authorized the City Manager to execute the extension, subject to approval as to form by the City Attorney.

6.8 City Hall/Public Library Project Architectural Services ITEM 6.1 – Attachment A
June 15, 2022 4 City Council Regular Meeting Minutes

1. Waived the provisions set forth in Laguna Woods Municipal Code Section 3.06.080(c) related to competitive bidding.

AND

2. Approved an extension and amendment of the agreement with obrARCHITECTURE, Inc. for City Hall/Public Library Project architectural services and authorized the City Manager to execute the extension and amendment, subject to approval as to form by the City Attorney.

6.9 As Needed Financial Consulting Services

1. Waived the provisions set forth in Laguna Woods Municipal Code Section 3.06.080(c) related to competitive bidding.

AND

2. Approved an extension and amendment of the agreement with Irwin B. Bornstein for as needed financial consulting services and authorized the City Manager to execute the extension and amendment subject to approval as to form by the City Attorney.

6.10 Information Technology Services

1. Waived the provisions set forth in Laguna Woods Municipal Code Section 3.06.080(c) related to competitive bidding.

AND

2. Approved an extension of the agreement with Practical Data Solutions for information technology services and authorized the City Manager to execute the extension, subject to approval as to form by the City Attorney.

6.11 As Needed Waste Management Consulting Services

1. Waived the provisions set forth in Laguna Woods Municipal Code Section 3.06.080(c) related to competitive bidding.

AND

2. Approved an extension and amendment of the agreement with Michael Balliet for as needed waste management consulting services and authorized the City Manager to execute the extension and amendment, subject to approval as to form by the City Attorney.

6.12 Senior Mobility Program
ITEM 6.1 – Attachment A
June 15, 2022 5 City Council Regular Meeting Minutes
Waived the Senior Mobility Program’s annual enrollment fee of $10 per person for Fiscal Year 2022-23.

6.13 Americans with Disabilities Act (ADA) Pedestrian Accessibility Improvement Project Phase 5

1. Approved final record plans and specifications reflecting completion of the “Americans with Disabilities Act (ADA) Pedestrian Accessibility Improvement Project: Phase 5”.

AND

2. Accepted project completion of the contract agreement with Kalban, Inc. for the “Americans with Disabilities Act (ADA) Pedestrian Accessibility Improvement Project: Phase 5”.

AND

3. Released contract retention in the amount of $15,165.58 withheld per California Government Code 35 days following recordation of the Notice of Completion with the County of Orange, provided no Stop Notices are on file with the City preventing the release of the contract retention.

AND

4. Exonerate project posted bonds 35 days following recordation of the Notice of Completion with the County of Orange.

6.14 Laguna Woods Civic Support Fund
Appointed German Cuenca with Sodexo Senior Living to the Board of Directors for the Laguna Woods Civic Support Fund as a business member.

ITEMS PULLED FROM THE CONSENT CALENDAR FOR SEPARATE DISCUSSION

6.4 Teleconferencing for Meetings
Councilmember Hatch commented on the item and inquired if it is still necessary.

Councilmembers discussed the item and staff answered related questions.

Kathryn Freshley, resident, commented that elected officials previously had to disclose their address if they were attending a meeting remotely.

City Attorney Patterson briefly responded to the public comments.

ITEM 6.1 – Attachment A
June 15, 2022 6 City Council Regular Meeting Minutes
Moved by Mayor Pro Tem Conners, seconded by Councilmember Horne, and carried unanimously on a 5-0 vote, to adopt a resolution entitled:

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAGUNA

WOODS, CALIFORNIA, ALLOWING FOR THE CONTINUED USE OF
TELECONFERENCING FOR MEETINGS DURING THE COVID-19

STATE OF EMERGENCY, PURSUANT TO CALIFORNIA ASSEMBLY
BILL 361 (2021-2022)
VII. PUBLIC HEARINGS – None
VIII. CITY COUNCIL BUSINESS

8.1 Fiscal Years 2022-32 Pavement Management Plan
City Manager Macon made a presentation.

Kathryn Freshley, resident, commented that the condition of the City’s streets is very good and the City Council should consider not accepting funds from the State so that they can be allocated to cities with greater needs.

City Manager Macon briefly responded to the public comments.

Councilmembers discussed the item and staff answered related questions.

Moved by Councilmember Hatch, seconded by Mayor Pro Tem Conners, and carried unanimously on a 5-0 vote, to adopt a resolution entitled:

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAGUNA

WOODS, CALIFORNIA, CONCERNING THE STATUS AND UPDATE

OF THE PAVEMENT MANAGEMENT PLAN FOR THE MEASURE
M2 (M2) PROGRAM

8.2 Fiscal Years 2021-23 Budget and Work Plan & Fiscal Years 2021-32 Capital Improvement Program
City Manager Macon made a presentation.

A member of the public noted a typographical error in the PowerPoint presentation.

City Manager Macon acknowledged the error (“$186,5006” should be “$186,506”).

Councilmembers discussed the item and staff answered related questions.

Moved by Mayor Pro Tem Conners, seconded by Councilmember Horne, and carried unanimously on a 5-0 vote, to:

ITEM 6.1 – Attachment A
June 15, 2022 7 City Council Regular Meeting Minutes

1. Adopt a resolution entitled:

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAGUNA
WOODS, CALIFORNIA, ADOPTING A NEW 11-YEAR CAPITAL
IMPROVEMENT PROGRAM FOR FISCAL YEARS 2021-22
THROUGH 2031-32, IN CONFORMANCE WITH MEASURE M2 (OC

GO) REQUIREMENTS AND APPLICABLE CITY POLICIES AND

DISCRETION
AND

2. Adopt a resolution entitled:

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAGUNA

WOODS, CALIFORNIA, AMENDING AND ADOPTING THE FISCAL
YEARS 2021-23 BUDGET AND WORK PLAN FOR FISCAL YEAR
2021-22 COMMENCING JULY 1, 2021 AND ENDING JUNE 30, 2022, AND FISCAL YEAR 2022-23 COMMENCING JULY 1, 2022 AND
ENDING JUNE 30, 2023, RELTAED TO ADJUSTMENTS OF ROAD

MAINTENANCE & REHABILITATION PROGRAM FUND
APPROPRIATIONS FOR THE FISCAL YEAR 2022-23 PAVEMENT

MANAGEMENT PLAN PROJECT (NORTHBOUND MOULTON

PARKWAY BETWEEN CALLE CORTEZ AND VIA CAMPO VERDE),

AND ALLOCATION OF EXISTING FEDERAL GRANTS FUND
(AMERICAN RESCUE PLAN ACT (CORONAVIRUS LOCAL FISCAL

RECOVERY FUNDS)) APPROPRIATIONS TO SPECIFIC USES
AND

3. Increase the City Manager’s authorization to approve change orders for the contract agreement with iBuild Spectrum, Inc. for the construction of the “City Hall/Public Library Project” by $157,371 to accommodate door and window replacements and relocations at the existing City Hall building.

AND

4. Adopt a resolution entitled:

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

LAGUNA WOODS, CALIFORNIA, ADOPTING THE ANNUAL
APPROPRIATIONS LIMIT (GANN LIMIT) FOR FISCAL YEAR 2022- 23 COMMENCING JULY 1, 2022 AND ENDING JUNE 30, 2023, IN

ACCORDANCE WITH ARTICLE XIIIB OF THE CALIFORNIA STATE

CONSTITUTION

8.3 Road Repair and Accountability Act of 2017 Project List ITEM 6.1 – Attachment A
June 15, 2022 8 City Council Regular Meeting Minutes
City Manager Macon made a presentation.

Councilmember Horne left the meeting at 4:16 p.m.

Moved by Mayor Pro Tem Conners, seconded by Councilmember Hatch, and carried unanimously on a 4-0 vote, with Councilmember Horne absent, to adopt a resolution entitled:

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAGUNA
WOODS, CALIFORNIA, REPEALING RESOLUTION NO. 22-14 AND
ADOPTING A LIST OF FISCAL YEAR 2022-23 PROJECTS

PROPOSED TO RECEIVE FUNDING FROM THE ROAD REPAIR
AND ACCOUNTABILITY ACT OF 2017’S LOCAL STREETS AND

ROADS FUNDING PROGRAM (ROAD MAINTENANCE AND

REHABILITATION ACCOUNT), AS REQUIRED BY CALIFORNIA
STREETS AND HIGHWAYS CODE SECTION 2034(A)(1), AND

MAKING RELATED AUTHORIZATIONS
Councilmember Horne returned to the meeting at 4:20 p.m.

8.4 Employee Positions, Compensation, and Benefits
City Manager Macon made a presentation.

City Attorney Patterson made a presentation regarding the City Manager’s compensation.

A member of the public expressed concern that part-time positions would not receive the same benefits as full-time positions.

A member of the public inquired about the scheduling of morning and afternoon shifts.

City Manager Macon briefly responded to the public comments.

Councilmembers discussed the item and staff answered related questions.

Moved by Mayor Pro Tem Conners, seconded by Councilmember Horne, and carried unanimously on a 5-0 vote, to:

1. Repeal the existing job classifications for the following City employee positions:

Administrative Coordinator and Customer Service Representative.

AND

2. Approve a job classification for the following City employee position: Receptionist.

AND
ITEM 6.1 – Attachment A
June 15, 2022 9 City Council Regular Meeting Minutes

3. Adopt a resolution entitled:

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAGUNA
WOODS, CALIFORNIA, REPEALING RESOLUTION NO. 22-30, AND

ESTABLISHING A COMPENSATION SCHEDULE AND BENEFITS

FOR CITY EMPLOYEES
AND

4. Adopt a resolution entitled:

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAGUNA

WOODS, CALIFORNIA, AMENDING THE AUTHORIZED CITY
EMPLOYEE POSITIONS FOR FISCAL YEAR 2021-22 COMMENCING
JULY 1, 2021 AND ENDING JUNE 30, 2022, AND FISCAL YEAR 2022- 23 COMMENCING JULY 1, 2022 AND ENDING JUNE 30, 2023

8.5 Ad Hoc Anti-Hate Advisory Council Committee
(agendized by Councilmember Horne)
City Manager Macon noted that this is not a staff-initiated item.

Councilmember Horne made a presentation.

City Manager Macon responded to comments from Mayor Moore.

Steven Marsh, resident and Senior Pastor at Geneva Presbyterian Church, spoke in support of the recommendation.

Marcy Sheinwold, resident, spoke in support of the recommendation and offered the assistance of the Foundation of Laguna Woods Village.

Rebeca Gilad, Democratic Club of Laguna Woods, spoke in support of the recommendation.

Rabbi Joe Mendelsohn, Reform Temple of Laguna Woods, spoke in support of the recommendation.

Ramesh Joshi, resident, spoke in support of the recommendation. Mr. Joshi provided the City Council with written comments that are included in the public record.

Robert Cunningham, resident, spoke in support of the recommendation Pastor Willie Phillips, resident, spoke in support of the recommendation Councilmembers discussed the item.

ITEM 6.1 – Attachment A
June 15, 2022 10 City Council Regular Meeting Minutes
Mayor Moore called for a brief recess at 5:19 p.m.

The meeting was called back to order at 5:28 p.m.

Mayor Moore re-opened the public comment period.

Rabbi Joe Mendelsohn, Reform Temple of Laguna Woods, commented on the item.

Councilmember Hatch briefly responded to the public comments.

Rabbi Joe Mendelsohn, Reform Temple of Laguna Woods, commented on the item.

Rebeca Gilad, resident, commented on the item.

Steven Marsh, resident, commented on the item.

Councilmembers discussed the item.

A member of the public commented on the item.

Councilmembers discussed the item and staff answered related questions.

Kathryn Freshley, resident, expressed concern with the City getting involved in Laguna Woods Village issues.

Councilmembers discussed the item.

Marcy Sheinwold, resident, commented on the item.

Mayor Moore briefly responded to the public comments.

Moved by Councilmember Hatch, seconded by Councilmember Tao, and carried unanimously on a 5-0 vote, to create an ad hoc exploratory group to explore the existence, causes, and potential solutions to feelings of hatred that may exist in Laguna Woods Village, consisting of Mayor Pro Tem Conners and Councilmember Horne, beginning immediately through September 30, 2022.

8.6 Compensation Equity
(agendized by Mayor Moore)
By consensus, the City Council continued this item to the July 20, 2022 regular meeting.

8.7 Transparency of City of Laguna Woods
(agendized by Mayor Moore)
By consensus, the City Council continued this item to the July 20, 2022 regular meeting.

ITEM 6.1 – Attachment A
June 15, 2022 11 City Council Regular Meeting Minutes
IX. CITY COUNCIL REPORTS AND COMMENTS

9.1 Coastal Greenbelt Authority
Mayor Pro Tem Conners stated that there had been no meeting since the last meeting.

9.2 Orange County Fire Authority
No report.

9.3 Orange County Library Advisory Board
Mayor Moore stated that there had been no meeting since the last meeting.

9.4 Orange County Mosquito and Vector Control District
Councilmember Horne stated that there had been no meeting since the last meeting.

9.5 San Joaquin Hills Transportation Corridor Agency
Mayor Pro Tem Conners provided a report.

9.6 South Orange County Watershed Management Area
No report.

9.7 Other Comments and Reports
Councilmember Horne reported on the California Senior Legislature.

X. CLOSED SESSION
Prior to convening in closed session, an opportunity was provided for public comments on items appearing on the closed session agenda. No such public comments were received.

10.1 The City Council met in closed session under the authority of California Government Code Section 54957(b)(1) to consider the following: Public Employee Performance Evaluation – City Manager.

XI. CLOSED SESSION REPORT
The City Council reconvened in open session at 6:24 p.m. City Attorney Patterson stated that there was no reportable action.

XII. ADJOURNMENT
ITEM 6.1 – Attachment A
June 15, 2022 12 City Council Regular Meeting Minutes
The meeting was adjourned at 6:24 p.m. The next regular meeting will be at 2:00 p.m. on Wednesday, July 20, 2022 at Laguna Woods City Hall, 24264 El Toro Road, Laguna Woods, CA 92637.
__________________________________
YOLIE TRIPPY, CMC, City Clerk
Approved: September 21, 2022
__________________________________
CAROL MOORE, Mayor
ITEM 6.1 – Attachment B
July 20, 2022 1 City Council Regular Meeting Minutes

CITY OF LAGUNA WOODS CALIFORNIA

CITY COUNCIL MINUTES

REGULAR MEETING
July 20, 2022
2:00 P.M.

Laguna Woods City Hall
24264 El Toro Road
Laguna Woods, California 92637

I. CALL TO ORDER
Mayor Moore called the Regular Meeting of the City Council of the City of Laguna Woods to order at 2:00 p.m.

II. ROLL CALL
COUNCILMEMBER: PRESENT: Hatch, Horne, Tao, Conners, Moore ABSENT: -
All councilmembers participated in-person at the meeting location.

STAFF PRESENT: City Manager Macon, City Attorney Patterson, City Clerk Trippy All staff participated in-person at the meeting location.

III. PLEDGE OF ALLEGIANCE
Division Chief Contreras, Orange County Fire Authority, led the pledge of allegiance.

IV. PRESENTATIONS AND CEREMONIAL MATTERS

4.1 Wildfire Awareness and Prevention Season – Mid-Summer to Early Autumn 2022 City Clerk Trippy read the proclamation.

Councilmember Hatch introduced the item.

Division Chief Contreras made comments and answered related questions.

Councilmembers made comments.

Moved by Mayor Pro Tem Conners, seconded by Councilmember Tao, and carried unanimously on a 5-0 vote, to approve the proclamation.

The City Council recessed to take a photograph presenting the proclamation to Division ITEM 6.1 – Attachment B
July 20, 2022 2 City Council Regular Meeting Minutes
Chief Contreras at 2:14 p.m. The meeting was reconvened at 2:17 p.m.

4.2 City Hall/Public Library Project Update
City Manager Macon provided an update and answered related questions.

Councilmembers made comments.

Mayor Moore commented on the sound quality in the Council Chambers.

V. PUBLIC COMMENTS ON NON-AGENDA ITEMS – None
VI. CONSENT CALENDAR
City Manager Macon responded to a question from Councilmember Hatch regarding Item 6.2.

Moved by Councilmember Horne, seconded by Mayor Pro Tem Conners, and carried unanimously on a 5-0 vote, to approve Consent Calendar items 6.1 – 6.8.

6.1 Reserved

6.2 City Treasurer’s Report
Received and filed the City Treasurer’s Report for the month of June 2022.

6.3 Warrant Register
Approved the warrant register dated July 20, 2022 in the amount of $1,004,017.19.

6.4 Teleconferencing for Meetings
Adopted a resolution entitled:

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAGUNA

WOODS, CALIFORNIA, ALLOWING FOR THE CONTINUED USE OF
TELECONFERENCING FOR MEETINGS DURING THE COVID-19

STATE OF EMERGENCY, PURSUANT TO CALIFORNIA ASSEMBLY
BILL 361 (2021-2022)

6.5 Retirement Governmental Money Purchase Plan
Adopted a resolution entitled:

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAGUNA

WOODS, CALIFORNIA, AMENDING AND RESTATING THE ICMA

RETIREMENT CORPORATION (DOING BUSINESS AS
ITEM 6.1 – Attachment B
July 20, 2022 3 City Council Regular Meeting Minutes

MISSIONSQUARE RETIREMENT) GOVERNMENTAL MONEY

PURCHASE PLAN, AND AUTHORIZING THE EXECUTION OF A

PLAN ADOPTION AGREEMENT, AS WELL AS OTHER RELATED

DOCUMENTS

6.6 Arborist and Tree Risk Assessment Services
Approved an extension of the agreement with Monarch Environmental Services for arborist and tree risk assessment services and authorized the City Manager to execute the extension, subject to approval as to form by the City Attorney.

6.7 City Engineering and Traffic Operations Services
Approved Amendment No. 1 to Cooperative Agreement No .C-1-3936 with the Orange County Transportation Authority for the Senior Mobility Program and authorized the City manager to execute the amendment, subject to approval as to form by the City Attorney.

6.8 El Toro Road and Moulton Parkway Water Quality Treatment Project Engineering Services

1. Waived the provisions set forth in Laguna Woods Municipal Code Section 3.06.080(c) related to competitive bidding.

AND

2. Approved an agreement with Fuscoe Engineering for El Toro Road and Moulton Parkway Water Quality Treatment Project engineering services and authorized the City Manager to execute the agreement, subject to approval as to form by the City Attorney.

VII. PUBLIC HEARINGS – None
VIII. CITY COUNCIL BUSINESS

8.1 Mobility Technology Plan
City Manager Macon introduced the item.

Tom Bellino, Southern California Association of Governments, and Steve Wilks, IBI Group, Inc., made presentations.

Councilmembers discussed the item and Mr. Bellino, Mr. Wilks, and staff answered related questions.

8.2 California Senate Bill 1127 (Atkins) (2021-2022)
ITEM 6.1 – Attachment B
July 20, 2022 4 City Council Regular Meeting Minutes
City Manager Macon made a presentation.

Councilmembers discussed the item and staff answered related questions.

Moved by Mayor Pro Tem Conners, seconded by Councilmember Horne, and carried unanimously on a 5-0 vote, to adopt a position in opposition to California Senate Bill 1127 (Atkins) (2021-2022) (Workers’ compensation: liability presumptions.) and authorize the Mayor to sign related correspondence.

8.3 Compensation Equity
(agendized by Mayor Moore)
Mayor Moore introduced the item.

Councilmembers discussed the item and staff answered related questions.

Moved by Councilmember Horne, seconded by Councilmember Hatch, and carried on a 4-1 vote, with Mayor Moore voting no, to take no action on the item.

8.4 Transparency of City of Laguna Woods
(agendized by Mayor Moore)
Mayor Moore introduced the item.

Councilmembers discussed the item and staff answered related questions.

8.5 California Assembly Bill 1594 (Ting) (2021-2022)
(agendized by Mayor Moore)
Mayor Moore introduced the item.

Councilmembers discussed the item.

IX. CITY COUNCIL REPORTS AND COMMENTS

9.1 Coastal Greenbelt Authority
Councilmember Tao provided a report and responded to a question from Councilmember Horne.

9.2 Orange County Fire Authority
Councilmember Hatch provided a report.

9.3 Orange County Library Advisory Board
ITEM 6.1 – Attachment B
July 20, 2022 5 City Council Regular Meeting Minutes
Mayor Moore stated that there had been no meeting since the last meeting.

9.4 Orange County Mosquito and Vector Control District
Councilmember Horne provided a report.

9.5 San Joaquin Hills Transportation Corridor Agency
Mayor Pro Tem Conners provided a report.

9.6 South Orange County Watershed Management Area
Mayor Moore stated that there had been no meeting since the last meeting.

9.7 Other Comments and Reports
Councilmember Horne reported on the Senior Citizens Advisory Council, California Senior Legislature, and Ad Hoc Anti-Hate Advisory Council Committee. Councilmember Horne answered a related question from Councilmember Hatch.

Councilmember Hatch and Mayor Moore commented on the upcoming Driving Out Darkness: Orange County Summit on Antisemitism and Hate.

Mayor Pro Tem Conners responded to the comments.

Mayor Pro Tem Conners commented on the Ad Hoc Anti-Hate Advisory Council Committee.

Annie McCary, resident, spoke in support of the Ad Hoc Anti-Hate Advisory Council Committee’s efforts thus far. Ms. McCary also commented on a Juneteenth celebration.

Mayor Pro Tem Conners requested to move Item 10.1 (to meet in closed session under the authority of California Government Code Section 54957(b)(1) to consider the following: Public Employee Performance Evaluation – City Manager) to the August 17, 2022 regular meeting.

City Attorney Patterson made comments.

City Manager Macon stated that he was amenable to the item being moved.

Moved by Mayor Pro Tem Conners, seconded by Councilmember Tao, and carried on a 4-0 vote, with Councilmember Hatch abstaining, to move Item 10.1 to the August 17, 2022 City Council meeting.

X. CLOSED SESSION – None
ITEM 6.1 – Attachment B
July 20, 2022 6 City Council Regular Meeting Minutes
XI. CLOSED SESSION REPORT – None
XII. ADJOURNMENT
The meeting was adjourned at 4:13 p.m. The next regular meeting will be at 2:00 p.m. on Wednesday, August 17, 2022 at Laguna Woods City Hall, 24264 El Toro Road, Laguna Woods, CA 92637.
__________________________________
YOLIE TRIPPY, CMC, City Clerk
Approved: September 21, 2022
__________________________________
CAROL MOORE, Mayor

6.2 CITY TREASURER’S REPORT
This page is intentionally blank.

City of Laguna Woods
City Treasurer's Report
For the Month Ended August 31, 2022

CASH AND INVESTMENTS
ITEM 6.2
Beginning
Balances
Earnings &
Receipts Disbursements
Purchases,
Transfers &
Other
Adjustments
Ending
Balances
% of Total
Cash &
Investment
Balances
Maximum %
Allowed per
Investment
Policy
As of 7/31/22 As of 8/31/22
Cash and Cash EquivalentsAnalyzed Checking Account (Note 1) 948,262 $ 738,415 $ (641,407) $ - $ 1,045,270 $ 7.22% Cash Balances, Multi-Bank Securities (MBS) Account (Note 2 and 4) 2,588 $ 5,629 $ (2,740) $ - $ 5,476 $ 0.04% Earned Interest in Transit and Accrued Interest, MBS Account (Note 4) 9,762 $ 6,578 $ (5,629) $ - $ 10,711 $ 0.07% Petty Cash $ - 2,500 $ (1,149) $ - $ 1,351 $ 0.01%
Total Cash and Cash Equivalents 963,111 $ 750,622 $ (650,925) $ - $ 1,062,808 $ 7.34% 100.00% Pooled Money Investment Accounts
Local Agency Investment Fund (LAIF) (Notes 2 and 3) $ - 1,931,071 $ - $ - $ 1,931,071 $ 13.33% Orange County Investment Pool (OCIP) (Notes 2 and 3) 9,121,884 $ 5,152 $ (437) $ (158,537) $ 8,968,061 $ 61.91% Total Pooled Money Investment Accounts 11,052,954 $ 5,152 $ (437) $ (158,537) $ 10,899,132 $ 75.24% 90.00% Investments - Interest and Income BearingCertificates of Deposit (fair value) (Note 2) 2,523,369 $ - $ - $ 635 $ 2,524,004 $ 17.42% Total Investments - Interest and Income Bearing 2,523,369 $ - $ - $ 635 $ 2,524,004 $ 17.42% 30.00% TOTAL $ 755,774 14,539,435 $ (651,362) $ (157,902) $ 14,485,944 $ 100.00% Summary of Total Cash, Cash Equivalents, and Investments:

General Fund
Special
Revenue Funds Totals
Analyzed Checking Account (3,568,857) $ 4,614,127 $ 1,045,270 $ Cash Balances, MBS Account 5,476 $ - $ 5,476 $
Earned Interest in Transit and Accrued Interest, MBS Account 10,711 $ - $ 10,711 $ Petty Cash 1,351 $ - $ 1,351 $
LAIF 1,931,071 $ - $ 1,931,071 $
OCIP 8,968,061 $ - $ 8,968,061 $
Certificates of Deposit 2,524,004 $ - $ 2,524,004 $
Totals $ 4,614,127 9,871,817 $ 14,485,944 $
(See NOTES on Page 4 of 4)
City Treasurer's Report Page 1 of 4 For the Month Ended August 31, 2022 City of Laguna Woods
City Treasurer's Report
For the Month Ended August 31, 2022

CASH AND INVESTMENTS
ITEM 6.2
CUSIP
Investment
# Issuer Term
Purchase
Date
Settlement
Date Par Value Market Value Book Value
Stated Rate
(Note 4)
Coupon
Type
1st Coupon
Date
Rating or
Rank (*)
Yield to
Maturity
365 Days
Maturity
Date
Money Funds and Certificate of Deposits (CDs, Federal Deposit Insurance Corporation [FDIC] Insured) 90348JEA4 2018-6 UBS BANK USA 48 months 10/01/18 10/05/18 245,000 245,265 245,000 3.250 Monthly 11/05/18 Green*** 3.250 10/05/22 61760ARV3 2018-7 MORGAN STANLEY PRIVATE BK NATL 60 months 11/06/18 11/15/18 245,000 245,997 245,000 3.550 Semi-Annual 05/15/19 Green*** 3.550 11/15/23 02589AA28 2018-9 AMERICAN EXPRESS NATL 60 months 12/04/18 12/04/18 240,000 240,982 240,000 3.550 Semi-Annual 06/04/19 Green*** 3.550 12/04/2333715LCZ1 2018-10 FIRST TECHNOLOGY FED CU MTN VIEW 60 months 12/07/18 12/12/18 245,000 246,171 245,000 3.600 Monthly 01/12/19 Green*** 3.600 12/12/23 949763ZA7 2019-1 WELLS FARGO BK N A 60 months 04/09/19 04/10/19 245,000 243,285 245,000 2.850 Monthly 05/10/19 Green* 2.850 04/10/24 38150VBG3 2022-2 GOLDMAN SACHS BK USA 24 months 05/24/22 06/01/22 245,000 243,197 245,000 2.900 Semi-Annual 12/01/22 Green* 2.900 06/03/24 75472RBB6 2020-1 RAYMOND JAMES BK NATL ASSN 60 months 02/06/20 02/14/20 245,000 235,430 245,000 1.750 Semi-Annual 08/14/20 Green*** 1.750 02/14/25 59013KGJ9 2020-2 MERRICK BANK 60 months 03/24/20 03/31/20 100,000 95,988 100,000 1.800 Monthly 05/01/20 Green*** 1.800 03/31/25 14042TGG6 2022-1 CAPITAL ONE BK USA NATL ASSN 36 months 05/24/22 05/25/22 245,000 242,878 245,000 3.100 Semi-Annual 11/25/22 Green* 3.100 05/27/25 32022RRG4 2022-4 1ST FINL BK USA 48 months 06/15/22 06/24/22 245,000 242,501 245,000 3.150 Monthly 07/24/22 Green* 3.150 06/24/26 50625LBN2 2022-3 LAFAYETTE FED CR 60 months 05/24/22 06/15/22 245,000 242,310 245,000 3.250 Monthly 07/15/22 Green*** 3.250 06/15/27 Accrued Interest - Month End 10,711Total CDs 2,545,000 2,534,715 2,545,000 Table 1: CD Rankings (used prior to September 2017)
IDC Rank Group Meaning
Veribanc
Rank
200-300 Superior Green165-199 Excellent Yellow125-164 Average Red 75-124 Below Average
2-74 Lowest Ratios
1 Highest Probability of Failure
Government Pooled Money Investment Accounts (PMIA) (Notes 2 and 3) N/A N/A Local Agency Investment Fund (LAIF) N/A Various Various 1,943,191 1,931,071 1,943,191 Note 3 Quarterly N/A N/A N/A N/AN/A N/A Orange County Investment Pool (OCIP) N/A Various Various 9,111,552 8,968,061 9,111,552 Note 3 Monthly N/A N/A N/A N/A Total PMIA 11,054,744 10,899,132 11,054,744
(See NOTES on Page 4 of 4)
Merits close attention, does not meet minimal qualifications for equity and has incurred significant losses (*) At the time of purchase and until September 2017, CDs were rated or ranked using an IDC Financial Publishing, Inc. (IDC) compiled ranking, and includes a one-number summary rank of quality comprised of 35 key financial ratios. Ranks range from 1 (the lowest) to 300 (the highest) and fall into one of the following six groups per Table 1. Post September 2017, CDs are ranked using the Veribanc Rating System, a two-part color code and star classification system which tests the present standing and future outlook by reviewing an institution's capital strength, asset quality, management ability, earnings sufficiency, liquidity, and sensitivity to market risk. Table 2 below summarizes the Veribanc color rankings. Veribanc star ratings of one to three, with three being best, are used to help review a possible future trend of an institutions health based on metrics from ten prior quarters. A rating of one, two, or three, are not necessarily an indicator of risk or an undesirable investment. The City reviews other rating systems and issuer financials before choosing any investment.

Table 2: Veribanc Color Rankings (used beginning in September 2017) Color Meaning
Highest rating, exceeds qualifications in equity and income tests Merits attention, meets minimal qualifications in equity and income tests City Treasurer's Report Page 2 of 4 For the Month Ended August 31, 2022 City of Laguna Woods
City Treasurer's Report
For the Month Ended August 31, 2022

CASH AND INVESTMENTS
ITEM 6.2
Beginning
Balances
Contributions /
(Withdrawals)
Administrative
Fees &
Investment
Expense
Unrealized
Gain / (Loss)
Ending
Balances
As of 7/31/22 As of 8/31/22
Other Post-Employment Benefits (OPEB) TrustCalPERS California Employers' Retiree Benefit Trust (CERBT) (Note 2) 134,358 $ - $ (10) $ (5,061) $ 129,286 $ (CERBT holds all assets and administers the OPEB Trust) Employer Pension Contributions TrustCalPERS California Employers' Pension Prefunding Trust (CEPPT) (Note 2) - $ - $ - $ - $ - $ (CEPPT holds all assets and administers the Employer Pension Contributions Trust) Total Other Funds - Held in Trust 134,358 $ - $ (10) $ (5,061) $ 129,286 $ (See NOTES on Page 4 of 4)
City Treasurer's Report Page 3 of 4 For the Month Ended August 31, 2022 City of Laguna Woods
City Treasurer's Report
For the Month Ended August 31, 2022

CASH AND INVESTMENTS
ITEM 6.2
Notes:

OPEB Trust / The City made no contributions to or withdrawals from the OPEB Trust. The OPEB Trust experienced a net loss of $5,071.09 in August 2022.Employer Pension Contributions Trust / In April 2021, the City elected to participate in the CEPPT. The City has not yet made contributions to the CEPPT.

Pool
Earnings
Post
Prior Period
Earnings
Deposited
Deposit for Period
Ended
Current
Month /
Quarter
Gross Yield
Current Month / Quarter
Earnings Will Post
LAIF Quarterly $0 See Notes See Notes October 2022
OCIP Monthly $5,152 May 2022 See Notes See Notes
City Treasurer's CertificationI, Elizabeth Torres, City Treasurer, do hereby certify:
y That all investment actions executed since the last report have been made in full compliance with the City's Investment of Financial Assets Policy; andy That the City is able to meet all cash flow needs which might reasonably be anticipated for the next 12 months.

Elizabeth Torres, City Treasurer
Notes
Total pool interest yield for August 2022 was 1.276% and the City's yield will be slightly lower based on allocation ratios and administrative fees to be deducted.Interest is posted three months in arrears and fees are posted monthly. Accrued interest pending payment at August 31, 2022 was $19,939.50. August 2022 interest rate and fees were not available at the time of this report. July 2022 interest rate was 0.848% and fees were 0.055%.

Note 4 - CDs / The stated earnings rate for CDs is a fixed rate for the full term. The City earned interest of $5,629.14 and transferred out $2,740.48 in cash balances to the City's checking account in August 2022. Cash balances to be invested or paid out are classified separately on page 1 of 4. The City's portfolio also has $10,710.97 in accrued interest, not yet vested. Note 1 - Analyzed Checking Account / Monthly activity reported does not reflect August 2022 vendor invoicing processed after the date of this report. Note 2 - During August 2022, transaction activity in pooled money investment accounts, investment accounts and fiduciary trusts included:

LAIF / The City made no deposits to or withdrawals from the LAIF account. The balance includes an adjustment in the amount of ($12,120.51) to reflect the fair market value of the investment at June 30, 2022.OCIP / The City made no deposits to or withdrawals from the OCIP account. The balance was adjusted by ($158,537.26) to reflect the fair market value of the investment at June 30, 2022.Investments / There were no maturities or purchases of investments. Investments were adjusted in the amount of $635.15 to report balances at fair market value as of August 31, 2022.

Note 3 - Investment earnings on pooled money investment accounts deposited and reported in August 2022 net of related fees were:

City Treasurer's Report Page 4 of 4 For the Month Ended August 31, 2022 Digitally signed by Elizabeth Torres Date: 2022.09.15 18:06:31 -07'00'

6.3 WARRANT REGISTER
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ITEM 6.3
Date Vendor Name Description Amount
Debit Automatic Bank Debits:

Debit 08/02/2022 DELTA DENTAL OF CALIFORNIA Employee Benefit Program / August 2022 539.50Debit 08/02/2022 CALPERS - RETIREMENT Retirement Contributions / Pay Period Ended 07/01/2022 3,078.41Debit 08/02/2022 CALPERS - RETIREMENT Retirement Contributions / Pay Period Ended 07/01/2022 1,649.40Debit 08/02/2022 AUTHORIZE.NET Online Credit Card Processing Fees / July 2022 12.00Debit 08/02/2022 GLOBAL PAYMENTS / OPEN EDGE Credit Card Processing Fees / July 2022 973.59Debit 08/03/2022 NAVIA BENEFIT SOLUTIONS Employee Benefit Program / August 2022 192.72Debit 08/04/2022 ICMA / MFRS AND TRADERS TRUST Employee Benefit Program / Pay Period Ended 07/29/2022 2,795.00Debit 08/04/2022 ADP TAX Payroll Taxes / Pay Period Ended 07/29/2022 8,578.35Debit 08/04/2022 ADP WAGE PAY Payroll Transfer / Pay Period Ended 07/29/2022 17,767.06Debit 08/05/2022 ADP PAYROLL SERVICES Payroll Processing Fees / Pay Periods Ended 07/01/2022 and 07/15/2022 489.14Debit 08/08/2022 NAVIA BENEFIT SOLUTIONS, INC 125 Cafeteria Plan Administration / July 2022 100.00Debit 08/11/2022 NAVIA BENEFIT SOLUTIONS Employee Benefit Program / August 2022 147.77Debit 08/11/2022 CALPERS - HEALTH Employee Benefit Program / August 2022 7,387.03Debit 08/12/2022 COUNTY OF ORANGE - SHERIFF Law Enforcement Services / August 2022 261,943.67Debit 08/12/2022 U.S. BANK Bank Service Charges / July 2022 94.87Debit 08/16/2022 CALPERS - RETIREMENT Retirement Contributions / Pay Period Ended 07/15/2022 3,108.40Debit 08/16/2022 CALPERS - RETIREMENT Retirement Contributions / Pay Period Ended 07/15/2022 1,706.05Debit 08/17/2022 ADP TAX Payroll Taxes / Pay Period Ended 08/12/2022 8,734.88Debit 08/17/2022 ADP WAGE PAY Payroll Transfer / Pay Period Ended 08/12/2022 17,866.40Debit 08/18/2022 ICMA / MFRS AND TRADERS TRUST Employee Benefit Program / Pay Period Ended 08/12/2022 1,620.00Debit 08/25/2022 NAVIA BENEFIT SOLUTIONS Employee Benefit Program / August 2022 43.68Debit 08/26/2022 CALPERS - RETIREMENT Unfunded Accrued Liability / July 2022 230.63Debit 08/26/2022 CALPERS - RETIREMENT Unfunded Accrued Liability / July 2022 116.82Debit 08/30/2022 CALPERS - RETIREMENT Retirement Contributions / Pay Period Ended 07/29/2022 3,105.68Debit 08/30/2022 CALPERS - RETIREMENT Retirement Contributions / Pay Period Ended 07/29/2022 1,692.80Debit 08/31/2022 ADP TAX Payroll Taxes / Pay Period Ended 08/26/2022 9,372.86Debit 08/31/2022 ADP WAGE PAY Payroll Transfer / Pay Period Ended 08/26/2022 19,964.67 Check
Number Warrants:
5966 08/05/2022 BOUTWELL FAY LLP Legal Services / May 2022 637.50 5967 08/05/2022 RUTAN & TUCKER Legal Services / June 2022 15,955.00 5968 08/05/2022 360CIVIC Website Maintenance / July 2022 400.00 5969 08/05/2022 ABOUND FOOD CARE Edible Food Recovery Program Services / June 2022 317.005970 08/05/2022 NAVIA BENEFIT SOLUTIONS, INC 125 Cafeteria Plan Administration / July 2022 100.005971 08/05/2022 OFFICE TEAM Temporary Administrative Services / Week Ended July 22, 2022 1,458.805972 08/05/2022 PETTY CASH Replenish Petty Cash / July 2022 -5973 08/11/2022 360CIVIC Website Hosting / July 2022 200.005974 08/11/2022 ABOUND FOOD CARE Edible Food Recovery Program Services / July 2022 317.005975 08/11/2022 ADT COMMERCIAL City Hall Maintenance 3,425.00 5976 08/11/2022 AT&T Telephone / 458-3487 / July 2022 46.80 5977 08/11/2022 AT&T Telephone / 452-0600 / July 2022 2,627.73 5978 08/11/2022 AT&T White Pages / August 2022 4.625979 08/11/2022 AT&T Telephone / 639-0500 / July 2022 231.44

CITY OF LAGUNA WOODS

WARRANT REGISTER
SEPTEMBER 21, 2022
This Report Covers the Period 8/01/2022 through 8/31/2022 1 of 3
ITEM 6.3
Date Vendor Name Description Amount

CITY OF LAGUNA WOODS

WARRANT REGISTER
SEPTEMBER 21, 2022
This Report Covers the Period 8/01/2022 through 8/31/2022 5980 08/11/2022 BRIGHTVIEW LANDSCAPE SERVICES, INC. Landscape Maintenance / July 2022 18,158.075981 08/11/2022 BROAD SKY NETWORKS City Hall Internet Service / August 2022 171.455982 08/11/2022 CALIFORNIA JPIA Pollution Liability Insurance Policy / Fiscal Year 2022-23 500.00 5983 08/11/2022 CITY OF LAGUNA BEACH Animal Control & Shelter Services / July 2022 9,426.755984 08/11/2022 KONE INC. City Hall Elevator Maintenance / August 2022 225.005985 08/11/2022 LA OPINION Public Notices 436.255986 08/11/2022 OBR ARCHITECTURE, INC. City Hall/Public Library Project 2,000.005987 08/11/2022 ORANGE COUNTY REGISTER-NOTICES Public Notices 1,349.80 5988 08/11/2022 ORKIN Pest Control Services 2,000.005989 08/11/2022 PARK CONSULTING GROUP, INC Software Consulting Services / July 2022 3,637.505990 08/11/2022 PV MAINTENANCE INC Street, City Hall, & Park Maintenance / July 2022 11,936.505991 08/11/2022 RICOH USA, INC. Copier Usage / July 2022 141.26 5992 08/11/2022 SOUTHERN CALIFORNIA EDISON Electric Services / June - July 2022 8,403.125993 08/11/2022 SOUTHERN CALIFORNIA GAS COMPANY Gas Service - City Hall / July 2022 14.305994 08/11/2022 STAPLES Office & Janitorial Supplies 673.305995 08/11/2022 THE KOREA TIMES LA, INC. Public Notices 300.005996 08/11/2022 UNITED STATES POSTAL SERVICE Postage 1,724.00 5997 08/11/2022 VITUITY - URGENT CARE SERVICES, PC Employee Health Services / July 2022 80.00 5998 08/11/2022 WORLD JOURNAL Public Notices 360.005999 08/11/2022 ACC BUSINESS City Hall Internet Service / June 2022 594.67 6000 08/11/2022 ADT COMMERCIAL Annual Sprinkler Inspection / Calendar Year 2022 358.316001 08/11/2022 BARTEL ASSOCIATES, LLC OPEB Valuation / Fiscal Year 2021-22 2,908.50 6002 08/11/2022 BRIGHTVIEW LANDSCAPE SERVICES, INC. Landscape Maintenance / April 2022 2,987.80 6003 08/11/2022 EL TORO WATER DISTRICT Water Service / June 2022 5,436.586004 08/11/2022 LSA ASSOCIATES, INC. Planning Services / April 2022 4,786.25 6005 08/11/2022 OMNI ENTERPRISE INC Janitorial Services / June 2022 2,560.006006 08/11/2022 RICOH USA, INC. Building Printer Usage / May - July 2022 56.586007 08/11/2022 YUNEX LLC Traffic Signal Maintenance / June 2022 1,659.506008 08/18/2022 BOUTWELL FAY LLP Legal Services / July 2022 127.506009 08/18/2022 CALIFORNIA YELLOW CAB Taxi Voucher Services / July 2022 443.006009 08/18/2022 CALIFORNIA YELLOW CAB NEMT Taxi Voucher Services / July 2022 558.006010 08/18/2022 COUNTY OF ORANGE 800 MHz Communication Charges / July - September 2022 1,069.006011 08/18/2022 COUNTY OF ORANGE Automated Fingerprint ID System / August 2022 613.00 6012 08/18/2022 IE, INC Cancelled Permit Refund 101.34
6013 08/18/2022 LSA ASSOCIATES, INC. Planning Services / July 2022 17,707.916014 08/18/2022 MARC DONOHUE Administrative Services / July 2022 250.00 6015 08/18/2022 OFFICE TEAM Temporary Administrative Services / Week Ended August 5, 2022 1,401.186016 08/18/2022 PRACTICAL DATA SOLUTIONS IT Support Services / July 2022 4,995.816017 08/18/2022 SOUTHWEST INSPECTION AND TESTING, INC. City Hall/Public Library Project 372.006018 08/18/2022 STEVEN BAUMGARDNER Cancelled Permit Refund 190.656019 08/18/2022 CIVIL SOURCE Traffic Engineering / June 2022 12,935.006020 08/18/2022 COUNTY OF ORANGE Automated Fingerprint ID System / June 2022 636.006021 08/18/2022 LSA ASSOCIATES, INC. Planning Services / May 2022 9,130.276022 08/18/2022 MARC DONOHUE Administrative Services / June 2022 400.00 6023 08/18/2022 PRACTICAL DATA SOLUTIONS IT Support Services / June 2022 3,726.84 2 of 3
ITEM 6.3
Date Vendor Name Description Amount

CITY OF LAGUNA WOODS

WARRANT REGISTER
SEPTEMBER 21, 2022
This Report Covers the Period 8/01/2022 through 8/31/2022 6024 08/26/2022 CAPTIONING UNLIMITED Closed Captioning / July - August 2022 900.006025 08/26/2022 CIVIL SOURCE Traffic Engineering / July 2022 4,480.006026 08/26/2022 INTERWEST CONSULTING GROUP Building Official, Permit Counter & Inspection Services / July 2022 53,805.006027 08/26/2022 MANAGED HEALTH NETWORK Employee Benefit Program / September 2022 16.726028 08/26/2022 OFFICE TEAM Temporary Administrative Services / Weeks Ended July 29 and August 12 & 19, 2022 4,084.64 6029 08/26/2022 OMNI ENTERPRISE INC Janitorial Services / July 2022 2,400.006030 08/26/2022 RICOH USA, INC. Copier Lease / September 2022 214.206031 08/26/2022 SOUTHERN CALIFORNIA SHREDDING, Shredding Services / July 2022 500.006032 08/26/2022 VERIZON WIRELESS Building iPad Data Plans / July 2022 120.036033 08/26/2022 AMAZON CAPITAL SERVICES Office Supplies 303.546034 08/26/2022 BRIGHTVIEW LANDSCAPE SERVICES, INC. Landscape Maintenance / June 2022 2,273.35 6035 08/26/2022 DATA TICKET, INC Citation Processing / August - September 2021 8.22 6036 08/26/2022 LSA ASSOCIATES, INC. Planning Services / June 2022 18,577.256037 08/26/2022 OFFICE TEAM Temporary Administrative Services / Week Ended June 17, 2022 1,156.336038 08/26/2022 PV MAINTENANCE INC Street, City Hall, & Park Maintenance / June 2022 12,263.766039 08/26/2022 WILLDAN ENGINEERING Building Official Services 660.00 Total Bank Debits and Warrants: $ 638,338.30
TOTAL $ 638,338.30
NOTES:Note 1 - City Councilmembers are eligible to receive either a salary or vehicle reimbursement allowance in the amount of $300 per month ($3,600 per year). Suchcompensation is included in the City's regular payroll (see "ADP Payroll Services" under "Automatic Bank Debits"), unless waived by the Councilmember. For themonth of August 2022, the following Councilmembers received compensation in the amount of $300: Conners, Hatch, Horne, and Tao.Note 2 - Petty cash is reported as cash is paid out, not when the fund is replenished. No petty cash transactions were paid during this time period.

The petty cash replenishment on August 5, 2022 was to replenish the overdrawn cash drawers for taxi voucher refunds. Note 3 - No credit card transactions were paid during this time period.

Administrative Services Director/City Treasurer's CertificationI, Elizabeth Torres, Administrative Services Director / City Treasurer, do hereby certify:
y That the City is able to meet all cash flow needs which might reasonably be anticipated for the next 12 months; andy That the City is in compliance with California Government Code Section 27108.

Elizabeth Torres, Administrative Services Director/City Treasurer y In accordance with California Government Code Section 37202, I hereby certify to the accuracy of the demands on cash summarized within; 3 of 3
Digitally signed by Elizabeth Torres Date: 2022.09.15 18:07:03 -07'00' This page is intentionally blank.

6.4 TELECONFERENCING FOR MEETINGS
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ITEM 6.4
R 22-XX 1 XX-XX-2022
RESOLUTION NO. 22-XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAGUNA

WOODS, CALIFORNIA, ALLOWING FOR THE CONTINUED USE OF
TELECONFERENCING FOR MEETINGS DURING THE COVID-19

STATE OF EMERGENCY, PURSUANT TO CALIFORNIA ASSEMBLY
BILL 361 (2021-2022)
WHEREAS, on February 26, 2020, the County of Orange Health Officer declared a Local Health Emergency and the Chairwoman of the Board of Supervisors, acting as the Chair of Emergency Management Council, proclaimed a Local Emergency finding that the imminent and proximate threat to public health from the introduction of COVID-19 created conditions of extreme peril to the safety of persons and property within the territorial limits of Orange County; and WHEREAS, on March 2, 2020, the Orange County Board of Supervisors adopted resolutions No. 20-011 and 20-012 ratifying the Local Health Emergency and Local Emergency, referenced above; and
WHEREAS, on March 4, 2020, the Governor of the State of California proclaimed a State of Emergency in response to COVID-19, pursuant to Section 8625 of the California Emergency Services Act (Article 1 [commencing with Section 8550] of Chapter 7 of Division 1 of Title 2); and WHEREAS, on March 11, 2020 the World Health Organization publicly characterized COVID-19 as a pandemic; and
WHEREAS, on March 13, 2020, the President of the United States declared a National Emergency due to the spread and the effects of COVID-19; and WHEREAS, the State of California (California Department of Industrial Relation’s Division of Occupational Safety and Health’s Revised COVID-19 Prevention Emergency Temporary Standards effective May 6, 2022) and County of Orange Health Officer (Orders and Strong Recommendations revised August 19, 2022) continue to impose or recommend measures to promote social distancing; and
WHEREAS, on March 17, 2020, the Governor of the State of California issued Executive Order N-29-20 that, in an effort to confront and contain COVID19, suspended certain provisions of the Ralph M. Brown Act providing local ITEM 6.4
R 22-XX 2 XX-XX-2022
agencies with greater flexibility to hold meetings via teleconferencing; and WHEREAS, on September 16, 2021, the Governor of the State of California signed Assembly Bill 361 (2020-2022) (“AB 361”) amending the Ralph M. Brown Act providing local agencies with greater flexibility to hold meetings via teleconferencing during a proclaimed state of emergency when: (1) state or local officials have imposed or recommended measures to promote social distancing and/or (2) the legislative body of the local agency has determined, by majority vote, that, as a result of the emergency, meeting in person would present imminent risks to the health or safety of attendees (California Government Code Section 54953(e)(1)); and
WHEREAS, AB 361 was chaptered into law as an urgency statute with its effectiveness waived until October 1, 2021, subject to the Governor of the State of California’s Executive Order N-15-21 dated September 20, 2021; and WHEREAS, in order to continue holding meetings via teleconferencing, AB 361 requires the legislative body of a local agency to periodically make the findings set forth in California Government Code Section 54953(e)(3).

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

WOODS, DOES HEREBY RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS:

SECTION 1. The above recitals are true and correct.

SECTION 2. The City Council does hereby find the following:
(A) A state of emergency has been proclaimed pursuant to Section 8625 of the California Emergency Services Act (Article 1 [commencing with Section 8550] of Chapter 7 of Division 1 of Title 2); and
(B) The City Council has reconsidered the circumstances of the state of emergency; and
(C) The state of emergency continues to directly impact the ability of the members of the City Council to meet safely in person; and (D) State and local officials continue to impose or recommend measures to promote social distancing.

ITEM 6.4
R 22-XX 3 XX-XX-2022
SECTION 3. The Mayor shall sign this resolution and the City Clerk shall attest and certify to the passage and adoption thereof.

PASSED, APPROVED AND ADOPTED on this XX day of XX 2022. _______________________________
CAROL MOORE, Mayor
ATTEST:
________________________________
YOLIE TRIPPY, CMC, City Clerk

STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.

CITY OF LAGUNA WOODS )
I, YOLIE TRIPPY, City Clerk of the City of Laguna Woods, do HEREBY CERTIFY that the foregoing Resolution No. 22-XX was duly adopted by the City Council of the City of Laguna Woods at a regular meeting thereof, held on the XX day of XX 2022, by the following vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:
_________________________________
YOLIE TRIPPY, CMC, City Clerk
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6.5 FISCAL YEARS 2021-23 BUDGET

ADJUSTMENTS
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ITEM 6.5
R 22-XX 1 XX-XX-2022
RESOLUTION NO. 22-XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAGUNA

WOODS, CALIFORNIA, ADJUSTING THE ASSIGNED RESERVE

BALANCES FOR THE PAID LEAVE CONTINGENCY RESERVE AND

THE GENERAL FUND CONTINGENCY RESERVE FOR FISCAL
YEAR 2022-23
WHEREAS, the Fiscal Years 2021-23 Budget (“Budget”) was adopted by the City Council on June 23, 2021; and
WHEREAS, the Budget includes contingency funds for paid leave, selfinsurance, and General Fund purposes; and WHEREAS, in accordance with Administrative Policy 2.9, the Budget was adopted with an overall target for committed and assigned reserves in an amount equal to 50% of the adopted General Fund revenue budget for Fiscal Year 2022- 23, less any one-time revenues and non-operating revenues, based on information available as the adoption of the Budget; and
WHEREAS, in accordance with Administrative Policy 2.9, the Budget was adopted with an estimate of the assigned reserve balance for the Paid Leave Contingency Reserve for Fiscal Year 2022-23, subject to finalization by City Council action after fiscal-year-end calculations are available; and WHEREAS, fiscal-year-end calculations for the Paid Leave Contingency Reserve are now available and staff has recommended an increase in its assigned reserve balance for Fiscal Year 2022-23, based on actual accrued paid leave balances for City employees as of June 30, 2022; and
WHEREAS, in accordance with Administrative Policy 2.9, adjustment of the assigned reserve balance for the Paid Leave Contingency Reserve also affects the assigned reserve balance for the General Fund Contingency Reserve; and WHEREAS, the assigned reserve balance adjustments recommended by staff would increase and finalize the assigned reserve balance for the Paid Leave Contingency Reserve for Fiscal Year 2022-23 by $21,670 and reduce the assigned reserve balance for the General Fund Contingency Reserve for Fiscal Year 2022- 23 by $21,670, with no change to total committed and assigned reserves for Fiscal Year 2022-23.

ITEM 6.5
R 22-XX 2 XX-XX-2022

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

WOODS, DOES HEREBY RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS:

SECTION 1. Section 3 of Resolution No. 21-20 is hereby amended, as previously amended by Resolution No. 21-24, in its entirety, to read as follows:

The General Fund assigned reserves authorized are:

Fiscal Year
2021-22
Fiscal Year
2022-23
Paid Leave
Contingency Reserve $103,362 $120,046
Self-Insurance
Contingency Reserve $50,000 $50,000
General Fund
Contingency Reserve $2,975,538 $3,036,204
TOTAL $3,128,900 $3,206,250
Assigned reserves shall be maintained, administered, and expended in accordance with Administrative Policy 2.9.

SECTION 2. The Mayor shall sign this resolution and the City Clerk shall attest and certify to the passage and adoption thereof.

PASSED, APPROVED AND ADOPTED on this XX day of XX 2022. _______________________________
CAROL MOORE, Mayor
ATTEST:
________________________________
YOLIE TRIPPY, CMC, City Clerk
ITEM 6.5
R 22-XX 3 XX-XX-2022

STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.

CITY OF LAGUNA WOODS )
I, YOLIE TRIPPY, City Clerk of the City of Laguna Woods, do HEREBY CERTIFY that the foregoing Resolution No. 22-XX was duly adopted by the City Council of the City of Laguna Woods at a regular meeting thereof, held on the XX day of XX 2022, by the following vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:
_________________________________
YOLIE TRIPPY, CMC, City Clerk
This page is intentionally blank.

6.6 INVESTMENT OF FINANCIAL ASSETS POLICY
This page is intentionally blank.

ITEM 6.6
CC  09-21-2022 RM ITEM 6.6 – AR Page 1 of 2
City of Laguna Woods
Agenda Report
TO: Honorable Mayor and City Councilmembers
FROM: Christopher Macon, City Manager
FOR: September 21, 2022 Regular Meeting
SUBJECT: Investment of Financial Assets Policy
Recommendation
Adopt a resolution titled:

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAGUNA

WOODS, CALIFORNIA, REVIEWING AND ADOPTING AN ANNUAL

STATEMENT OF THE INVESTMENT POLICY, ADOPTING AN
INVESTMENT POLICY, AND RENEWING THE CITY COUNCIL’S

DELEGATION OF INVESTMENT AUTHORITY TO THE CITY

TREASURER PURSUANT TO CALIFORNIA GOVERNMENT CODE
SECTION 53607
Background
Local government investment policies and activities are subject to standards and limitations set forth in California Government Code, including Section 53601 et seq., which describes permissible investment types and maximum investments.

California Government Code Section 53607 requires that the City Council review the City’s investment policy, as it relates to any delegation of investment authority, at least annually. Separately, California Government Code Section 53646 speaks to the advisability of regular investment policy reviews.

The existing investment policy was last reviewed, modified, and adopted by the City Council at the adjourned regular meeting on April 4, 2022.

ITEM 6.6
ITEM 6.6 – AR Page 2 of 2 CC  09-21-2022 RM
The City Council last voted to renew its delegation of investment authority to the City Treasurer at the regular meeting on October 20, 2021.

At the regular meeting on December 16, 2020, the City Council appointed Councilmembers Horne and Tao to serve on the standing Investment Policy Review Committee for calendar years 2021 and 2022, as called for in the investment policy. The Investment Policy Review Committee is responsible for conducting at least biannual reviews of the adequacy and effectiveness of the investment policy and preparing related recommendations for City Council consideration.

Discussion
Today’s meeting is an opportunity for City Council action, as well as public input, on the proposed review and adoption of an annual statement of the investment policy, adoption of an investment policy, and renewal of the City Council’s delegation of investment authority to the City Treasurer pursuant to California Government Code Section 53607 (Attachment A).

The Investment Policy Review Committee, City Manager, and City Treasurer recommend that the City Council adopt a modified investment policy that reflects certification by the California Municipal Treasurers Association dated June 27, 2022. The proposed investment policy is included as Exhibit A to Attachment A, and includes a final sentence below the certificate that was not previously reviewed by the Investment Policy Review Committee, but which adds clarity regarding the scope of modifications undertaken since receiving certification. A redline version of the proposed investment policy is included as Attachment B.

The Investment Policy Review Committee and City Manager recommend that the City Council renew delegation of investment authority to the City Treasurer. Doing so would be consistent with best practices related to internal control, as well as the investment process outlined in the investment policy.

Fiscal Impact
Sufficient funds to support this project are included in the City’s budget.

Attachments: A – Proposed Resolution
Exhibit A – Proposed Investment Policy
B – Proposed Investment Policy (redline)
ITEM 6.6 – Attachment A
R 22-XX 1 XX-XX-2022
RESOLUTION NO. 22-XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAGUNA

WOODS, CALIFORNIA, REVIEWING AND ADOPTING AN ANNUAL

STATEMENT OF THE INVESTMENT POLICY, ADOPTING AN
INVESTMENT POLICY, AND RENEWING THE CITY COUNCIL’S

DELEGATION OF INVESTMENT AUTHORITY TO THE CITY

TREASURER PURSUANT TO CALIFORNIA GOVERNMENT CODE
SECTION 53607
WHEREAS, the California legislature has declared that the deposit and investment of public funds by local officials and agencies is an issue of statewide concern (California Government Code sections 53600.6 and 53630.1); and WHEREAS, the City Council is able to invest surplus monies not required for the immediate necessities of the City in accordance with California Government Code sections 5921 and 53601 et seq.; and
WHEREAS, the City’s investment policy is contained in Administrative Policy 2.2 and was last adopted by the City Council on April 4, 2022; and WHEREAS, the City Council’s practice is to review the City’s investment policy, annually, and consider any changes thereto at a public meeting; and WHEREAS, on December 16, 2020, the City Council appointed Mayor Horne and Councilmember Tao to serve on the standing Investment Policy Review Committee from January 1, 2021 through December 31, 2022, as called for in the investment policy; and
WHEREAS, the Investment Policy Review Committee has worked with the City Manager and City Treasurer to review the adequacy and effectiveness of the existing investment policy; and
WHEREAS, the Investment Policy Review Committee (at a special meeting on August 24, 2022), City Manager, and City Treasurer have recommended that the City Council adopt modifications to the existing investment policy, all of which are incorporated into the investment policy attached hereto as Exhibit A; and WHEREAS, California Government Code Section 53607 provides that the authority of City Council to invest or to reinvest City funds, or to sell or exchange ITEM 6.6 – Attachment A
R 22-XX 2 XX-XX-2022
securities so purchased, may be delegated for a one-year period by the City Council to the City Treasurer, who shall thereafter assume full responsibility for those transactions until the delegation of authority is revoked or expires. Subject to review, the City Council may renew the delegation of authority annually; and WHEREAS, the City Council last renewed its delegation of investment authority to the City Treasurer on October 20, 2021; and WHEREAS, the Investment Policy Review Committee (at a special meeting on August 24, 2022) and City Manager have recommended that the City Council renew its delegation of investment authority to the City Treasurer pursuant to California Government Code Section 53607 for a one-year period.

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

WOODS, DOES HEREBY RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS:

SECTION 1. After independent review and consideration, the administrative policy attached hereto as Exhibit A is adopted and is a statement of the City’s investment policy. The City Council receives and files said statement in accordance with the City’s investment policy and applicable California Government Code and Laguna Woods Municipal Code provisions. The administrative policy attached hereto as Exhibit A replaces and supersedes all previous City investment policies.

SECTION 2. After independent review and consideration, the City Council renews its delegation of investment authority to the City Treasurer, as described in Administrative Policy 2.2 attached hereto as Exhibit A, in accordance with applicable California Government Code (including, but not limited to, California Government Code Section 53607) and Laguna Woods Municipal Code provisions.

SECTION 3. The Mayor shall sign this resolution and the City Clerk shall attest and certify to the passage and adoption thereof.

PASSED, APPROVED AND ADOPTED on this XX day of XX 2022. _______________________________
CAROL MOORE, Mayor
ITEM 6.6 – Attachment A
R 22-XX 3 XX-XX-2022
ATTEST:
________________________________
YOLIE TRIPPY, CMC, City Clerk

STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.

CITY OF LAGUNA WOODS )
I, YOLIE TRIPPY, City Clerk of the City of Laguna Woods, do HEREBY CERTIFY that the foregoing Resolution No. 22-XX was duly adopted by the City Council of the City of Laguna Woods at a regular meeting thereof, held on the XX day of XX 2022, by the following vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:
_________________________________
YOLIE TRIPPY, CMC, City Clerk
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ITEM 6.6 – Exhibit A to Attachment A
Administrative Policy 2.2 - Page 1 of 18

CITY OF LAGUNA WOODS
ADMINISTRATIVE POLICY 2.2

INVESTMENT OF FINANCIAL ASSETS

2.2.01. Statement of Purpose.

This Administrative Policy is intended to assist the City of Laguna Woods with the investment of the City’s financial assets in a manner that ensures adequate safety and liquidity, while maximizing yield (return) and complying with the requirements of California Government Code sections 53600 and 53635 et seq.

2.2.02. Scope.

This Administrative Policy generally applies to all financial assets and investment activities of the City. Such funds are accounted for, or disclosed, in annual audited financial statements and include the General Fund, Special Revenue Funds, and the Capital Projects Fund. Funds belonging to the Laguna Woods Civic Support Fund and funds invested separately with independent fiduciaries, including funds held and managed by the California Public Employees’ Retirement System (CalPERS) for the purpose of funding employee retirement obligations and other post-employment benefits (OPEB) are exempt from this Administrative Policy.

2.2.03. Objectives.

The objectives of the City’s investment activities, in priority order, shall be:

1. Safety – Safety of principal shall be the foremost objective. Investments shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall investment portfolio and the mitigation of credit risk and interest rate risk. This Administrative Policy recognizes that market conditions may warrant the sale of individual securities that would incur market losses in order to protect from further capital losses. The intent of this Administrative Policy is to ensure that capital losses are minimized on a portfolio level rather than on each transaction. To attain the safety objective, diversification of investments among a variety of securities with independent returns and institutions is required.

2. Liquidity – The investment portfolio shall remain sufficiently liquid (i.e., capable of being converted to cash quickly) in order to enable the City to meet all reasonably anticipated cash demands and operational requirements and to ITEM 6.6 – Exhibit A to Attachment A
Administrative Policy 2.2 - Page 2 of 18
maintain compliance with all applicable indenture agreements. Since unusual or unanticipated cash demands and operational requirements may occur from time-to-time, the portfolio shall primarily consist of investments in securities with active secondary and resale markets.

3. Yield (Return) – The investment portfolio shall be designed in a manner that seeks to attain the highest rate of return, consistent with established safety and liquidity objectives. While it is acknowledged and understood that occasional measurement losses may occur, the rate of return on the investment portfolio should be designed to attain a market rate of return throughout budgetary and economic cycles for similar investments.

2.2.04. Delegation of Authority.

City Treasurer
No person other than the City Treasurer or Acting City Treasurer (hereafter referred to jointly as the “City Treasurer”) shall engage in an investment transaction using the City’s financial assets. The City Treasurer shall additionally be responsible for all investment transactions undertaken and shall establish and maintain a system of internal controls to regulate all investing activities.

In accordance with Government Code Section 53607, the City Council delegates investment authority for a one-year period to the City Treasurer. Such delegation of authority is subject to annual review and renewal by the City Council, as well as revocation at the City Council’s discretion. Adoption of this Administrative Policy shall constitute renewal of such delegation for an additional one-year period.

Pursuant to Laguna Woods Municipal Code Section 2.10.010, the City Treasurer is appointed by, and reports to, the City Manager. The City Manager may serve as, or appoint, an Acting City Treasurer at any time during the absence of a permanent City Treasurer. During his/her/their appointment, the Acting City Treasurer shall have all of the powers and duties of the City Treasurer.

The City Treasurer and City Manager (with respect to his/her/their role appointing and supervising the City Treasurer, and participating in investment decisions) shall be relieved of personal responsibility for an individual investment’s performance or losses, market price changes, and the performance of or losses incurred by the overall portfolio provided that (1) actions were undertaken in accordance with this Administrative Policy and applicable federal and state law, (2) significant deviations ITEM 6.6 – Exhibit A to Attachment A
Administrative Policy 2.2 - Page 3 of 18
from expectations were reported to the City Council in a timely manner, and (3) appropriate action was taken to mitigate future adverse developments.

Investment Policy Review Committee of the City Council
The Investment Policy Review Committee shall be responsible for conducting at least biannual reviews of the adequacy and effectiveness of this Administrative Policy and preparing related recommendations for City Council consideration.

The City Council shall appoint two of its members to serve on the Investment Policy Review Committee for terms two calendar years in length, commencing on January 1 of each odd-numbered year. The City Council reserves the right to remove or replace any member of the Investment Policy Review Committee, with or without cause, following a publicly noticed vote of a majority of the quorum of City Councilmembers present at the time.

The Investment Policy Review Committee shall be considered a standing committee, subject to all applicable provisions of the Ralph M. Brown Act.

2.2.05. Public Trust.

The City Council, City Manager, City Treasurer, and all individuals authorized to participate in investment decisions on behalf of the City shall act as custodians of the public trust and recognize that the investment portfolio is subject to public review and evaluation. The City’s overall approach to investment shall be designed and managed with a degree of professionalism that is worthy of the public trust and will avoid any transactions that might impair public confidence.

2.2.06. Prudence.

The City Council, City Manager, City Treasurer, and all individuals authorized to participate in investment decisions on behalf of the City, are considered to be trustees and, therefore, fiduciaries subject to the prudent investor standard. The prudent investor standard is summarized in Government Code Section 53600.3, as follows:

All governing bodies of local agencies or persons authorized to make investment decisions on behalf of those local agencies investing public funds pursuant to this chapter are trustees and therefore fiduciaries subject to the prudent investor standard. When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, ITEM 6.6 – Exhibit A to Attachment A
Administrative Policy 2.2 - Page 4 of 18
a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency. Within the limitations of this section and considering individual investments as part of an overall strategy, investments may be acquired as authorized by law.

2.2.07. Ethics and Conflicts of Interest.

As set forth in the City’s Conflict of Interest Policy, and as otherwise required by the Political Reform Act and Fair Political Practices Commission, public officials who manage public investments are required to file economic interest disclosures.

In addition to federal, state and local statutes relating to conflicts of interest, the City Council, City Manager, City Treasurer, and all individuals authorized to participate in investment decisions on behalf of the City shall refrain from personal business association or activity that conflicts with proper execution of this Administrative Policy, or which could impair their ability to make impartial investment decisions.

2.2.08. Internal Controls and Routine External Review.

The City Treasurer shall develop, implement, and maintain a system of internal controls designed to ensure the effectiveness and efficiency of investment activities, compliance with applicable laws and regulations, and the reliability of financial reporting. Such internal controls shall seek to prevent the loss of public funds due to fraud, error, misrepresentation, and unanticipated market changes.

As a part of their annual review of internal controls, the City’s independent, external auditors shall review internal controls related to investment activities.

2.2.09. Authorized Financial Dealers, Depositories, and Institutions.

In accordance with Government Code Section 53601.5, investments shall either be purchased (1) directly from the issuer, (2) from an institution licensed by the State of California as a Broker-Dealer, as defined in Corporations Code Section 25004, (3) from a member of a federally regulated securities exchange, (4) from a national or state-chartered bank, from a savings association or federal association, as defined ITEM 6.6 – Exhibit A to Attachment A
Administrative Policy 2.2 - Page 5 of 18
by Financial Code Section 5102, or (5) from a brokerage firm designated as a primary government dealer by the Federal Reserve Bank. In addition, investments shall only be purchased from entities or deposits made in qualified public depositories, as established by state law, with full knowledge of applicable state law and at least five years’ experience providing similar services to California municipalities.

The selection of financial dealers, depositories, and institutions shall follow a periodic competitive procurement process (e.g., requests for proposals or requests for qualifications) and be subject to ultimate approval of the City Council or City Manager in accordance with established purchasing regulations and policies. The nature of the competitive procurement process, frequency thereof, and submittals required, shall be designed and determined by the City Treasurer.

On an annual basis, the City Treasurer shall send a copy of the current version of this Administrative Policy to all financial dealers, depositories, and institutions approved to do business with the City. Receipt of this Administrative Policy shall be considered confirmation that the parties to whom they were distributed understand the City’s authorized investment types and requirements thereof.

2.2.10. Authorized Investments.

In accordance with the requirements set forth in this Administrative Policy and in Government Code sections 53601, 53601.6, 53601.8, 53635, 53635.2, 53638, and 53684, the following types of investment are authorized and shall be invested subject to the limits and requirements set forth herein:

Type of Investment
Maximum Amount
of Portfolio
Investment
Maximum
Amount of
Individual
Investment
Minimum Credit
Quality and
Requirements
Maximum
Maturity
Federal Deposit
Insurance
Corporation (FDIC)
Insured Accounts
100% - - N/A
Bankers’
Acceptances
20% (no more than
5% with one bank) - - 180 days
Commercial Paper 15% (no more than
10% of a single issuer) - Standard & Poor’s:AAA or Moody’s: Aaa 270 days Local Government
Investment Pools 90% - See Section 2.2.11 N/A
ITEM 6.6 – Exhibit A to Attachment A
Administrative Policy 2.2 - Page 6 of 18
Type of Investment
Maximum Amount
of Portfolio
Investment
Maximum
Amount of
Individual
Investment
Minimum Credit
Quality and
Requirements
Maximum
Maturity
Joint Powers
Authority Pools 90% -
Must retain an
investment advisor who
is registered with the
Securities and Exchange
Commission (or exempt
from registration), has
assets under
management in excess of
$500 million, and has at
least five years’
experience investing in
instruments authorized
by Government Code
Section 53601,
subdivisions (a) to (o)
N/A
Money Market
Mutual Funds 10% -
Standard & Poor’s AAA
or Moody’s Aaa; and
Must retain an
investment advisor
registered with the
Securities and Exchange
Commission (or exempt
from registration) has
assets under
management in excess of
$500 million, and has at
least five years’
experience investing in
money market
instruments
N/A
Certificates of
Deposit (Negotiable
and Non-Negotiable)
30% (no more than
10% with one bank or
issuer)
$250,000
Issued by a nationally or
state-chartered bank, or
state or federal savings
and loan association, as
defined by California
Financial Code Section
5102, and fully insured
by the FDIC or
collateralized in
accordance with Section

2.2.15 5 years
Repurchase
Agreements
10% (no more than
20% of a single issuer) -
Collateralized in
accordance with Section

2.2.15 30 days
ITEM 6.6 – Exhibit A to Attachment A
Administrative Policy 2.2 - Page 7 of 18
Type of Investment
Maximum Amount
of Portfolio
Investment
Maximum
Amount of
Individual
Investment
Minimum Credit
Quality and
Requirements
Maximum
Maturity
United States
Treasury Obligations 90% of overall
portfolio for any one
investment type (no
more than 20% of a
single issuer)
-
Explicit full faith and
credit guarantee of the
United States
Government
5 years
United States Agency
Obligations -
Implied full faith and
credit guarantee of the
United States
Government
5 years
State of California
and Other Statesissued Obligations
20% of overall
portfolio for any one
investment type (no
more than 5% of a
single issuer)
- - 3 years
California Local
Government-issued
Municipal
Obligations
- - 3 years
Medium-Term Notes 20% -
Nationally Recognized
Statistical Ratings
Organization Rating:
“A” rating category or
its equivalent
5 years

2.2.11. Local Government Investment Pools.

While local government investment pools generally provide significant safety and liquidity, the City Treasurer shall complete a thorough investigation prior to making any such investment and consider the same during the monthly compliance review required by Section 2.2.13. Due diligence in investigations shall generally include a review of written statements of investment policies, objectives, fees schedules, and reporting schedules, as well as issues related to (1) eligible investors and securities, (2) the permitted frequencies and sizes of deposits and withdrawals, (3) security safeguards, including settlement processes, (4) the frequency with which securities are priced and the program audited, (5) the treatment of gains and losses, including interest calculations and distribution, (6) whether and, if so, how reserves, retained earnings, and similar funds are utilized by the investment pool, and (7) whether the investment pool is eligible for and, if so, accepts bond proceeds. In addition, only local government investment pools with at least five years’ experience providing similar services to other California municipalities may be utilized. Similar due diligence and investigative procedures shall be performed prior to investing in any other pooled investment funds, such as money market mutual funds.

ITEM 6.6 – Exhibit A to Attachment A
Administrative Policy 2.2 - Page 8 of 18

2.2.12. Prohibited Investments.

Notwithstanding those types of investments that are otherwise prohibited by law or this Administrative Policy, any investment not specifically listed in Section 2.2.10, as well as financial derivatives (e.g., inverse floaters, range notes, interest only strips derived from a pool of mortgages, and securities that could result in a zero-interest accrual if held to maturity) and foreign investments (e.g., indices and currencies) are prohibited.

2.2.13. Monthly Internal Compliance Review of Investment Portfolio.

Investments shall be in compliance with the ratings and other requirements set forth in this Administrative Policy at the time of purchase. It is acknowledged and understood that some investments may not fully comply with the same following purchase. The City Treasurer shall review the overall investment portfolio on a monthly basis and identify any investments that no longer comply. Non-compliant investments shall be reported to the City Council, City Manager, and City Attorney within 10 business days of discovery and corrected as soon as practical.

2.2.14. Safekeeping and Custody.

All investments shall be registered in the name of the City and all interest, principal payments, and withdrawals shall indicate the City as the sole payee.

All investments, with the exception of Federal Deposit Insurance Corporation (FDIC) Insured Accounts, Local Government Investment Pools, and Money Market Funds shall be held by a third-party custodian designated by the City Treasurer and evidenced by custodial agreements or safekeeping receipts. Third-party custodians shall comply with the requirements set forth in Section 2.2.09.

All security transactions, where applicable, shall use a Delivery-versus-Payment (DVP) settlement procedure with the City’s payment due at the time of delivery, which ensures that securities are deposited with the third-party custodian prior to the release of funds.

2.2.15. Collateralization.

Collateral for bank deposits and certificates of deposit shall be 110% of the market value of principal and accrued interest. Collateral can be either United States Treasury securities or United States Agency securities.

ITEM 6.6 – Exhibit A to Attachment A
Administrative Policy 2.2 - Page 9 of 18
Collateral for repurchase agreements shall be 102% of the market value of principal and accrued interest. Collateral can be either United States Treasury securities or United States Agency securities. The City Treasurer is authorized to grant the right of collateral substitution for repurchase agreements.

All collateral shall be held by an independent third party with whom the City has a current custodial agreement or master repurchase agreement. Evidence of ownership (safekeeping receipt) must be supplied to the City and retained.

2.2.16. Diversification.

The overall investment portfolio shall be diversified to avoid incurring unreasonable and avoidable risks associated with concentrating investments in specific investment types, maturity segments, or individual financial institutions. In a diversified portfolio, it is acknowledged and understood that occasional measurement losses may occur. Such losses shall be considered within the overall portfolio’s investment return. Diversification also requires investments to be spread among varying security types and institutions.

2.2.17. Reporting.

The City Treasurer shall prepare and submit a monthly investment report to the City Council. The report shall include a summary of all investment transactions for the preceding month, as required by Government Code Section 53607, as well as similar information that would be required by Government Code Section 53646(b) if the City prepared quarterly investment reports, to the extent that such information is available.

The report shall contain, at a minimum, the following information that is subject to this Administrative Policy: the type of investment, issuer, date of maturity, par value and costs of each investment, market value, and a description of any investments, including loans and security lending programs, that are under the management of contracted parties. For funds in local government investment pools, the report shall also include a current market value as of the date of the report and the source of that same valuation. The report shall also comply with Government Accounting Standard Board (GASB) Statement No. 40 and include the following:

A. Certification that all investment actions executed since the last report have been made in full compliance with this Administrative Policy; and ITEM 6.6 – Exhibit A to Attachment A
Administrative Policy 2.2 - Page 10 of 18
B. Certification that the City is able to meet all cash flow needs which might reasonably be anticipated for the next 12 months.

2.2.18. Annual City Council Review and Adoption of this Administrative Policy.

This Administrative Policy shall be reviewed, modified as necessary, and adopted, at least annually, to ensure its consistency with the objectives set forth in Section

2.2.03 and applicable law. The Administrative Policy shall be adopted by resolution of the City Council at a duly noticed public meeting. Such annual review shall be in addition to the reviews conducted by the Investment Policy Review Committee as described in Section 2.2.04.

2.2.19. Relationship to Federal and State Laws.

Where federal orstate laws are more restrictive than or contradict this Administrative Policy, such laws shall take precedence. Where this Administrative Policy is more restrictive than federal or state laws, this Administrative Policy shall take precedence.

The City Treasurer shall advise the Investment Policy Review Committee of any contradictions of federal or state law for consideration during its reviews conducted as described in Section 2.2.04.

2.2.20. Attachments.

Attachment A, “Glossary of Terms and Acronyms,” is incorporated by reference.

Attachment B, “California Municipal Treasurers Association Investment Policy Certification”
City Council Adoption: September 21, 2022
ITEM 6.6 – Exhibit A to Attachment A
Administrative Policy 2.2 - Page 11 of 18
Attachment A, “Glossary of Terms and Acronyms”
This Glossary of Terms and Acronyms contains common investment terminology to provide users with a better understanding of basic investment terms. It is intended to be used as a basic reference only, is not intended to be all inclusive, and should not be treated as a substitute for professional counsel or analysis.

ACCRUED INTEREST: Coupon interest accumulated on a bond or note since the last interest payment or, for a new issue, from the dated date to the date of delivery.

BANK DEPOSITS: Deposits in banks or other depository institutions that may be in the form of demand accounts (checking) or investments in accounts that have a fixed term and negotiated rate of interest.

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

BOND PROCEEDS: The money paid to the issuer by the purchaser or underwriter of a new issue of municipal securities. These moneys are used to finance the project or purpose for which the securities were issued and to pay certain costs of issuance as may be provided in the bond contract.

BONDS: A debt obligation of a firm or public entity. A bond represents the agreement to repay the debt in principal and, typically, in interest on the principal.

BROKER: A person or firm that acts as an intermediary by purchasing and selling securities for others rather than for its own account.

CASH FLOW: A comparison of cash receipts (revenues) to required payments (debt service, operating expenses, etc.).

CERTIFICATE OF DEPOSIT: A short-term, secured deposit in a financial institution that usually returns principal and interest to the lender at the end of the loan period. Certificates of Deposit (CDs) differ in terms of collateralization and marketability. CDs appropriate to public agency investing include:

Negotiable Certificates of Deposit – Generally, short-term debt instruments that pay interest and is issued by a bank, savings or federal association, state or federal credit union, or state-licensed branch of a foreign bank. The majority of negotiable CDs ITEM 6.6 – Exhibit A to Attachment A
Administrative Policy 2.2 - Page 12 of 18
mature within six months while the average maturity is two weeks. Negotiable CDs are traded in a secondary market and are payable upon order to the bearer or initial depositor (investor). Negotiable CDs are insured by the FDIC up to $250,000, but they are not collateralized beyond that amount.

Non-Negotiable Certificates of Deposit – CDs that carry a penalty if redeemed prior to maturity. A secondary market does exist for non-negotiable CDs, but redemption includes a transaction cost that reduces returns to the investor. Non-negotiable CDs issued by banks and savings and loans are insured by the FDIC up to the amount of $250,000, including principal and interest. Amounts deposited above this amount may be secured with other forms of collateral through an agreement between the investor and the issuer. Collateral may include other securities, including treasuries or agency securities (e.g., issued by the Federal National Mortgage Association).

COLLATERALIZATION OF DEPOSITS: A process by which a bank or other financial institution pledges securities or other deposits for the purpose of securing the repayment of deposited funds.

COMMERCIAL PAPER: An unsecured short-term promissory note issued by corporations or municipalities, with maturities ranging from two to 270 days.

COUNTY POOLED INVESTMENT FUNDS: The aggregate of all funds from public agencies placed in the custody of the county treasurer or chief finance officer for investment and reinvestment.

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

CREDIT RATING: The credit worthiness of an investment. Credit ratings are issued by Nationally Recognized Statistical Rating Organizations (NRSROs) registered with the Securities and Exchange Commission. Three highly recognized NRSROs are Standard and Poor’s, Moody’s, and Fitch. The organizations use a primary letter designation (numbers or symbols may follow the letter designation) to indicate the quality of an investment. As an example, short-term ratings by Standard and Poor’s of A-1+ and Moody’s of P-1 indicate a prime or high-grade quality investment.

Long-term prime or high-grade quality investments would be rated AAA or Aaa by Standard and Poor’s and Moody’s, respectively. Rates beginning with letters B or C would typically indicate an investment of speculative and higher risk quality.

ITEM 6.6 – Exhibit A to Attachment A
Administrative Policy 2.2 - Page 13 of 18
CREDIT RISK: The chance that an issuer will be unable to make scheduled payments of interest and principal on an outstanding obligation. Another concern for investors is that the market’s perception of an issuer/borrower’s credit will cause the market value of a security to fall, even if default is not expected.

CUSTODIAN: A bank or other financial institution that keeps custody of stock certificates and other assets.

DEALER: Someone who acts as a principal in all transactions, including underwriting, buying, and selling securities, including from his/her/their own account.

DELIVERY-VERSUS-PAYMENT (DVP): The payment of cash for securities as they are delivered and accepted for settlement.

DERIVATIVE: Securities that are based on, or derived from, some underlying asset, reference date, or index.

DISCOUNT: The difference between the par value of a security and the cost of the security, when the cost is below par. Investors purchase securities at a discount when return to the investor (yield) is higher than the stated coupon (interest rate) on the investment.

DISCOUNT RATE: The interest rate used in discounted cash flow analysis to determine the present value of future cash flows. The discount rate in discounted cash flow analysis takes into account not just the time value of money, but also the risk or uncertainty of future cash flows; the greater the uncertainty of future cash flows, the higher the discount rate.

DIVERSIFICATION: The allocation of different types of assets in a portfolio to mitigate risks and improve overall portfolio performance.

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

FIDUCIARY: An individual who holds something in trust for another and bears liability for its safekeeping.

GOVERNMENT ACCOUNTING STANDARDS BOARD (GASB): A standardsetting body, associated with the Financial Accounting Foundation, which prescribes ITEM 6.6 – Exhibit A to Attachment A
Administrative Policy 2.2 - Page 14 of 18
standard accounting practices for governmental units.

INDEX: An indicator that is published on a periodic basis that shows the estimated price and/or yield levels for various groups of securities.

INTEREST: The amount a borrower pays to a lender for the use of his/her/their money.

INTEREST RATE RISK: The risk that an investment's value will change due to a change in the absolute level of interest rates, spread between two rates, shape of the yield curve, or any other interest rate relationship.

JOINT POWERS AUTHORITY POOLS: Investment pools involving the joint exercise of common investment powers between two or more public agencies with shares of beneficial interest issued pursuant to Government Code Section 6509.7.

LIQUIDITY: The measure of the ability to convert an instrument to cash on a given date at full face or par value.

LOCAL AGENCY INVESTMENT FUND (LAIF): A voluntary investment fund open to government entities and certain non-profit organizations in California that is managed by the State Treasurer’s Office.

LOCAL GOVERNMENT INVESTMENT POOLS: Investment pools that include the Local Agency Investment Fund (LAIF) and County Pooled Investment Funds.

These funds are not subject to the same SEC rules applicable to money market mutual funds. For this Administrative Policy, Joint Powers Authority Pools are not considered “Local Government Investment Pools.”
MARKET VALUE: The price at which a security is trading and presumably could be purchased or sold at a particular point in time.

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

MEDIUM-TERM NOTES: Corporate or depository institution debt securities meeting certain minimum quality standards (as specified in Government Code Section 53601) with a maximum remaining maturity of five years or less, issued by (a) corporations organized and operating within the United States or (b) depository institutions licensed by the United States or any state and operating within the United ITEM 6.6 – Exhibit A to Attachment A
Administrative Policy 2.2 - Page 15 of 18
States. Instruments separately defined in, or authorized by, this Administrative Policy are not considered “Medium-Term Notes.”
MONEY MARKET MUTUAL FUNDS (MMFs): Mutual funds that invest exclusively in short-term money market instruments. MMFs seek the preservation of capital as a primary goal while maintaining a high degree of liquidity and providing income representative of the market for short term investments.

MORTGAGE-BACKED SECURITIES (MBS): Securities created when a mortgagee or a purchaser of residential real estate mortgages creates a pool of mortgages and markets undivided interests or participations in the pool. MBS owners receive a pro-rata share of the interest and principal cash flows (net of fees) that are “passed through” from the pool of mortgages. MBS are complex securities whose cash flow is determined by the characteristics of the mortgages that are pooled together. Investors in MBS face prepayment risk associated with the option of the underlying mortgagors to pre-pay or payoff their mortgage. Most MBS are issued and/or guaranteed by federal agencies and instrumentalities (e.g., Government National Mortgage Association (GNMA), Federal National Mortgage Association (FNMA), and Federal Home Loan Mortgage Corporation (FHLMC)).

MUNICIPAL NOTES, BONDS, AND OTHER OBLIGATIONS: Obligations issued by state and local governments to finance capital and operating expenses.

MUTUAL FUNDS: An investment company that pools money and can invest in a variety of securities, including fixed-income securities and money market instruments.

NATIONALLY RECOGNIZED STATISTICAL RATINGS ORGANIZATION
(NRSRO): A credit rating agency registered as a “Nationally Recognized Statistical Ratings Organization” with the Securities and Exchange Commission, consistent with the Credit Rating Agency Reform Act, the Dodd-Frank Wall Street Reform and Consumer Protection Act, and other applicable legislation and rulemaking, as may change from time-to-time.

NEW ISSUE: Securities sold during the initial distribution of an issue in a primary offering by the underwriter or underwriting syndicate.

NOTE: A written promise to pay a specified amount to a certain entity on demand or on a specified date. Usually bearing a short-term maturity of a year or less (though longer maturities are issued—see “Medium-Term Notes”).

ITEM 6.6 – Exhibit A to Attachment A
Administrative Policy 2.2 - Page 16 of 18
PAR VALUE: The principal amount of a note or bond which must be paid at maturity. Par, also referred to as the “face amount” of a security, is the principal value stated on the face of the security. A par bond is one sold at a price of 100 percent of its principal amount.

PORTFOLIO: Combined holding of more than one stock, bond, commodity, real estate investment, cash equivalent, or other asset. The purpose of a portfolio is to reduce risk by diversification.

PREMIUM: The difference between the par value of a security and the cost of the security, when the cost is above par. Investors pay a premium to purchase a security when the return to the investor (yield) is lower than the stated coupon (interest rate) on the investment.

PRICE: The amount of monetary consideration required by a willing seller and a willing buyer to sell an investment on a particular date.

PRINCIPAL: The face value or par value of a debt instrument, or the amount of capital invested in a given security.

PRUDENT INVESTOR STANDARD: A standard of conduct where a person acts with care, skill, prudence, and diligence when investing, reinvesting, purchasing, acquiring, exchanging, selling, and managing funds. The test of whether the standard is being met is if a prudent person acting in such a situation would engage in similar conduct to ensure that investments safeguard principal and maintain liquidity.

REPURCHASE AGREEMENTS: An agreement of one party (for example, a financial institution) to sell securities to a second party (such as a local agency) and simultaneous agreement by the first party to repurchase the securities at a specified price from the second party on demand or at a specified date.

RISK: The uncertainty of maintaining the principal or interest associated with an investment due to a variety of factors.

SAFEKEEPING SERVICE: Offers storage and protection of assets provided by an institution serving as an agent.

SAFETY: In the context of investing public funds, safety relates to preserving the principal of an investment in an investment portfolio; local agencies address the concerns of safety by controlling exposure to risks.

ITEM 6.6 – Exhibit A to Attachment A
Administrative Policy 2.2 - Page 17 of 18
SECURITIES AND EXCHANGE COMMISSION (SEC): The federal agency responsible for supervising and regulating the securities industry.

TRUSTEE OR TRUST COMPANY: A financial institution with powers to act in a fiduciary capacity for the benefit of the bondholders in enforcing the terms of the bond contract.

UNDERWRITER: A dealer that purchases a new issue of municipal securities for resale.

UNITED STATES AGENCY OBLIGATIONS: Federal agency or United States government-sponsored enterprise obligations, participations, or other instruments, including those issued by or fully guaranteed as to principal and interest by federal agencies or United States government-sponsored enterprises, including federal agency mortgage-backed securities. Types of instruments may include mortgagebacked securities from the Federal National Mortgage Association (FNMA) including Fannie Mae and Freddie Mac securities.

UNITED STATES TREASURY OBLIGATIONS: Debt obligations of the United States government sold by the Treasury Department in the forms of bills, notes, and bonds. Bills are short-term obligations that mature in one year or less and are sold at a discount. Notes are obligations that mature between one year and 10 years. Bonds are long-term obligations that generally mature in 10 years or more.

YIELD: The current rate of return on an investment security generally expressed as a percentage of the securities current price.

YIELD CURVE: A graphic representation that shows the relationship at a given point in time between yields and maturity for bonds that are identical in every way except maturity.

ITEM 6.6 – Exhibit A to Attachment A
Administrative Policy 2.2 - Page 18 of 18
Attachment B, “California Municipal Treasurers Association Investment Policy Certification”
The City’s Investment of Financial Assets policy, as adopted by the City Council on April 4, 2022, was certified by the California Municipal Treasurers Association (CMTA) on June 27, 2022.

Since receiving certification, the City’s modifications of the Investment of Financial Assets policy have been limited to updating this Attachment B.

ITEM 6.6 – Attachment B
Administrative Policy 2.2 - Page 1 of 18

CITY OF LAGUNA WOODS
ADMINISTRATIVE POLICY 2.2

INVESTMENT OF FINANCIAL ASSETS

2.2.01. Statement of Purpose.

This Administrative Policy is intended to assist the City of Laguna Woods with the investment of the City’s financial assets in a manner that ensures adequate safety and liquidity, while maximizing yield (return) and complying with the requirements of California Government Code sections 53600 and 53635 et seq.

2.2.02. Scope.

This Administrative Policy generally applies to all financial assets and investment activities of the City. Such funds are accounted for, or disclosed, in annual audited financial statements and include the General Fund, Special Revenue Funds, and the Capital Projects Fund. Funds belonging to the Laguna Woods Civic Support Fund and funds invested separately with independent fiduciaries, including funds held and managed by the California Public Employees’ Retirement System (CalPERS) for the purpose of funding employee retirement obligations and other post-employment benefits (OPEB) are exempt from this Administrative Policy.

2.2.03. Objectives.

The objectives of the City’s investment activities, in priority order, shall be:

1. Safety – Safety of principal shall be the foremost objective. Investments shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall investment portfolio and the mitigation of credit risk and interest rate risk. This Administrative Policy recognizes that market conditions may warrant the sale of individual securities that would incur market losses in order to protect from further capital losses. The intent of this Administrative Policy is to ensure that capital losses are minimized on a portfolio level rather than on each transaction. To attain the safety objective, diversification of investments among a variety of securities with independent returns and institutions is required.

2. Liquidity – The investment portfolio shall remain sufficiently liquid (i.e., capable of being converted to cash quickly) in order to enable the City to meet all reasonably anticipated cash demands and operational requirements and to ITEM 6.6 – Attachment B
Administrative Policy 2.2 - Page 2 of 18
maintain compliance with all applicable indenture agreements. Since unusual or unanticipated cash demands and operational requirements may occur from time-to-time, the portfolio shall primarily consist of investments in securities with active secondary and resale markets.

3. Yield (Return) – The investment portfolio shall be designed in a manner that seeks to attain the highest rate of return, consistent with established safety and liquidity objectives. While it is acknowledged and understood that occasional measurement losses may occur, the rate of return on the investment portfolio should be designed to attain a market rate of return throughout budgetary and economic cycles for similar investments.

2.2.04. Delegation of Authority.

City Treasurer
No person other than the City Treasurer or Acting City Treasurer (hereafter referred to jointly as the “City Treasurer”) shall engage in an investment transaction using the City’s financial assets. The City Treasurer shall additionally be responsible for all investment transactions undertaken and shall establish and maintain a system of internal controls to regulate all investing activities.

In accordance with Government Code Section 53607, the City Council delegates investment authority for a one-year period to the City Treasurer. Such delegation of authority is subject to annual review and renewal by the City Council, as well as revocation at the City Council’s discretion. Adoption of this Administrative Policy shall constitute renewal of such delegation for an additional one-year period.

Pursuant to Laguna Woods Municipal Code Section 2.10.010, the City Treasurer is appointed by, and reports to, the City Manager. The City Manager may serve as, or appoint, an Acting City Treasurer at any time during the absence of a permanent City Treasurer. During his/her/their appointment, the Acting City Treasurer shall have all of the powers and duties of the City Treasurer.

The City Treasurer and City Manager (with respect to his/her/their role appointing and supervising the City Treasurer, and participating in investment decisions) shall be relieved of personal responsibility for an individual investment’s performance or losses, market price changes, and the performance of or losses incurred by the overall portfolio provided that (1) actions were undertaken in accordance with this Administrative Policy and applicable federal and state law, (2) significant deviations ITEM 6.6 – Attachment B
Administrative Policy 2.2 - Page 3 of 18
from expectations were reported to the City Council in a timely manner, and (3) appropriate action was taken to mitigate future adverse developments.

Investment Policy Review Committee of the City Council
The Investment Policy Review Committee shall be responsible for conducting at least biannual reviews of the adequacy and effectiveness of this Administrative Policy and preparing related recommendations for City Council consideration.

The City Council shall appoint two of its members to serve on the Investment Policy Review Committee for terms two calendar years in length, commencing on January 1 of each odd-numbered year. The City Council reserves the right to remove or replace any member of the Investment Policy Review Committee, with or without cause, following a publicly noticed vote of a majority of the quorum of City Councilmembers present at the time.

The Investment Policy Review Committee shall be considered a standing committee, subject to all applicable provisions of the Ralph M. Brown Act.

2.2.05. Public Trust.

The City Council, City Manager, City Treasurer, and all individuals authorized to participate in investment decisions on behalf of the City shall act as custodians of the public trust and recognize that the investment portfolio is subject to public review and evaluation. The City’s overall approach to investment shall be designed and managed with a degree of professionalism that is worthy of the public trust and will avoid any transactions that might impair public confidence.

2.2.06. Prudence.

The City Council, City Manager, City Treasurer, and all individuals authorized to participate in investment decisions on behalf of the City, are considered to be trustees and, therefore, fiduciaries subject to the prudent investor standard. The prudent investor standard is summarized in Government Code Section 53600.3, as follows:

All governing bodies of local agencies or persons authorized to make investment decisions on behalf of those local agencies investing public funds pursuant to this chapter are trustees and therefore fiduciaries subject to the prudent investor standard. When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, ITEM 6.6 – Attachment B
Administrative Policy 2.2 - Page 4 of 18
a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency. Within the limitations of this section and considering individual investments as part of an overall strategy, investments may be acquired as authorized by law.

2.2.07. Ethics and Conflicts of Interest.

As set forth in the City’s Conflict of Interest Policy, and as otherwise required by the Political Reform Act and Fair Political Practices Commission, public officials who manage public investments are required to file economic interest disclosures.

In addition to federal, state and local statutes relating to conflicts of interest, the City Council, City Manager, City Treasurer, and all individuals authorized to participate in investment decisions on behalf of the City shall refrain from personal business association or activity that conflicts with proper execution of this Administrative Policy, or which could impair their ability to make impartial investment decisions.

2.2.08. Internal Controls and Routine External Review.

The City Treasurer shall develop, implement, and maintain a system of internal controls designed to ensure the effectiveness and efficiency of investment activities, compliance with applicable laws and regulations, and the reliability of financial reporting. Such internal controls shall seek to prevent the loss of public funds due to fraud, error, misrepresentation, and unanticipated market changes.

As a part of their annual review of internal controls, the City’s independent, external auditors shall review internal controls related to investment activities.

2.2.09. Authorized Financial Dealers, Depositories, and Institutions.

In accordance with Government Code Section 53601.5, investments shall either be purchased (1) directly from the issuer, (2) from an institution licensed by the State of California as a Broker-Dealer, as defined in Corporations Code Section 25004, (3) from a member of a federally regulated securities exchange, (4) from a national or state-chartered bank, from a savings association or federal association, as defined ITEM 6.6 – Attachment B
Administrative Policy 2.2 - Page 5 of 18
by Financial Code Section 5102, or (5) from a brokerage firm designated as a primary government dealer by the Federal Reserve Bank. In addition, investments shall only be purchased from entities or deposits made in qualified public depositories, as established by state law, with full knowledge of applicable state law and at least five years’ experience providing similar services to California municipalities.

The selection of financial dealers, depositories, and institutions shall follow a periodic competitive procurement process (e.g., requests for proposals or requests for qualifications) and be subject to ultimate approval of the City Council or City Manager in accordance with established purchasing regulations and policies. The nature of the competitive procurement process, frequency thereof, and submittals required, shall be designed and determined by the City Treasurer.

On an annual basis, the City Treasurer shall send a copy of the current version of this Administrative Policy to all financial dealers, depositories, and institutions approved to do business with the City. Receipt of this Administrative Policy shall be considered confirmation that the parties to whom they were distributed understand the City’s authorized investment types and requirements thereof.

2.2.10. Authorized Investments.

In accordance with the requirements set forth in this Administrative Policy and in Government Code sections 53601, 53601.6, 53601.8, 53635, 53635.2, 53638, and 53684, the following types of investment are authorized and shall be invested subject to the limits and requirements set forth herein:

Type of Investment
Maximum Amount
of Portfolio
Investment
Maximum
Amount of
Individual
Investment
Minimum Credit
Quality and
Requirements
Maximum
Maturity
Federal Deposit
Insurance
Corporation (FDIC)
Insured Accounts
100% - - N/A
Bankers’
Acceptances
20% (no more than
5% with one bank) - - 180 days
Commercial Paper 15% (no more than
10% of a single issuer) - Standard & Poor’s:AAA or Moody’s: Aaa 270 days Local Government
Investment Pools 90% - See Section 2.2.11 N/A
ITEM 6.6 – Attachment B
Administrative Policy 2.2 - Page 6 of 18
Type of Investment
Maximum Amount
of Portfolio
Investment
Maximum
Amount of
Individual
Investment
Minimum Credit
Quality and
Requirements
Maximum
Maturity
Joint Powers
Authority Pools 90% -
Must retain an
investment advisor who
is registered with the
Securities and Exchange
Commission (or exempt
from registration), has
assets under
management in excess of
$500 million, and has at
least five years’
experience investing in
instruments authorized
by Government Code
Section 53601,
subdivisions (a) to (o)
N/A
Money Market
Mutual Funds 10% -
Standard & Poor’s AAA
or Moody’s Aaa; and
Must retain an
investment advisor
registered with the
Securities and Exchange
Commission (or exempt
from registration) has
assets under
management in excess of
$500 million, and has at
least five years’
experience investing in
money market
instruments
N/A
Certificates of
Deposit (Negotiable
and Non-Negotiable)
30% (no more than
10% with one bank or
issuer)
$250,000
Issued by a nationally or
state-chartered bank, or
state or federal savings
and loan association, as
defined by California
Financial Code Section
5102, and fully insured
by the FDIC or
collateralized in
accordance with Section

2.2.15 5 years
Repurchase
Agreements
10% (no more than
20% of a single issuer) -
Collateralized in
accordance with Section

2.2.15 30 days
ITEM 6.6 – Attachment B
Administrative Policy 2.2 - Page 7 of 18
Type of Investment
Maximum Amount
of Portfolio
Investment
Maximum
Amount of
Individual
Investment
Minimum Credit
Quality and
Requirements
Maximum
Maturity
United States
Treasury Obligations 90% of overall
portfolio for any one
investment type (no
more than 20% of a
single issuer)
-
Explicit full faith and
credit guarantee of the
United States
Government
5 years
United States Agency
Obligations -
Implied full faith and
credit guarantee of the
United States
Government
5 years
State of California
and Other Statesissued Obligations
20% of overall
portfolio for any one
investment type (no
more than 5% of a
single issuer)
- - 3 years
California Local
Government-issued
Municipal
Obligations
- - 3 years
Medium-Term Notes 20% -
Nationally Recognized
Statistical Ratings
Organization Rating:
“A” rating category or
its equivalent
5 years

2.2.11. Local Government Investment Pools.

While local government investment pools generally provide significant safety and liquidity, the City Treasurer shall complete a thorough investigation prior to making any such investment and consider the same during the monthly compliance review required by Section 2.2.13. Due diligence in investigations shall generally include a review of written statements of investment policies, objectives, fees schedules, and reporting schedules, as well as issues related to (1) eligible investors and securities, (2) the permitted frequencies and sizes of deposits and withdrawals, (3) security safeguards, including settlement processes, (4) the frequency with which securities are priced and the program audited, (5) the treatment of gains and losses, including interest calculations and distribution, (6) whether and, if so, how reserves, retained earnings, and similar funds are utilized by the investment pool, and (7) whether the investment pool is eligible for and, if so, accepts bond proceeds. In addition, only local government investment pools with at least five years’ experience providing similar services to other California municipalities may be utilized. Similar due diligence and investigative procedures shall be performed prior to investing in any other pooled investment funds, such as money market mutual funds.

ITEM 6.6 – Attachment B
Administrative Policy 2.2 - Page 8 of 18

2.2.12. Prohibited Investments.

Notwithstanding those types of investments that are otherwise prohibited by law or this Administrative Policy, any investment not specifically listed in Section 2.2.10, as well as financial derivatives (e.g., inverse floaters, range notes, interest only strips derived from a pool of mortgages, and securities that could result in a zero-interest accrual if held to maturity) and foreign investments (e.g., indices and currencies) are prohibited.

2.2.13. Monthly Internal Compliance Review of Investment Portfolio.

Investments shall be in compliance with the ratings and other requirements set forth in this Administrative Policy at the time of purchase. It is acknowledged and understood that some investments may not fully comply with the same following purchase. The City Treasurer shall review the overall investment portfolio on a monthly basis and identify any investments that no longer comply. Non-compliant investments shall be reported to the City Council, City Manager, and City Attorney within 10 business days of discovery and corrected as soon as practical.

2.2.14. Safekeeping and Custody.

All investments shall be registered in the name of the City and all interest, principal payments, and withdrawals shall indicate the City as the sole payee.

All investments, with the exception of Federal Deposit Insurance Corporation (FDIC) Insured Accounts, Local Government Investment Pools, and Money Market Funds shall be held by a third-party custodian designated by the City Treasurer and evidenced by custodial agreements or safekeeping receipts. Third-party custodians shall comply with the requirements set forth in Section 2.2.09.

All security transactions, where applicable, shall use a Delivery-versus-Payment (DVP) settlement procedure with the City’s payment due at the time of delivery, which ensures that securities are deposited with the third-party custodian prior to the release of funds.

2.2.15. Collateralization.

Collateral for bank deposits and certificates of deposit shall be 110% of the market value of principal and accrued interest. Collateral can be either United States Treasury securities or United States Agency securities.

ITEM 6.6 – Attachment B
Administrative Policy 2.2 - Page 9 of 18
Collateral for repurchase agreements shall be 102% of the market value of principal and accrued interest. Collateral can be either United States Treasury securities or United States Agency securities. The City Treasurer is authorized to grant the right of collateral substitution for repurchase agreements.

All collateral shall be held by an independent third party with whom the City has a current custodial agreement or master repurchase agreement. Evidence of ownership (safekeeping receipt) must be supplied to the City and retained.

2.2.16. Diversification.

The overall investment portfolio shall be diversified to avoid incurring unreasonable and avoidable risks associated with concentrating investments in specific investment types, maturity segments, or individual financial institutions. In a diversified portfolio, it is acknowledged and understood that occasional measurement losses may occur. Such losses shall be considered within the overall portfolio’s investment return. Diversification also requires investments to be spread among varying security types and institutions.

2.2.17. Reporting.

The City Treasurer shall prepare and submit a monthly investment report to the City Council. The report shall include a summary of all investment transactions for the preceding month, as required by Government Code Section 53607, as well as similar information that would be required by Government Code Section 53646(b) if the City prepared quarterly investment reports, to the extent that such information is available.

The report shall contain, at a minimum, the following information that is subject to this Administrative Policy: the type of investment, issuer, date of maturity, par value and costs of each investment, market value, and a description of any investments, including loans and security lending programs, that are under the management of contracted parties. For funds in local government investment pools, the report shall also include a current market value as of the date of the report and the source of that same valuation. The report shall also comply with Government Accounting Standard Board (GASB) Statement No. 40 and include the following:

A. Certification that all investment actions executed since the last report have been made in full compliance with this Administrative Policy; and ITEM 6.6 – Attachment B
Administrative Policy 2.2 - Page 10 of 18
B. Certification that the City is able to meet all cash flow needs which might reasonably be anticipated for the next 12 months.

2.2.18. Annual City Council Review and Adoption of this Administrative Policy.

This Administrative Policy shall be reviewed, modified as necessary, and adopted, at least annually, to ensure its consistency with the objectives set forth in Section

2.2.03 and applicable law. The Administrative Policy shall be adopted by resolution of the City Council at a duly noticed public meeting. Such annual review shall be in addition to the reviews conducted by the Investment Policy Review Committee as described in Section 2.2.04.

2.2.19. Relationship to Federal and State Laws.

Where federal orstate laws are more restrictive than or contradict this Administrative Policy, such laws shall take precedence. Where this Administrative Policy is more restrictive than federal or state laws, this Administrative Policy shall take precedence.

The City Treasurer shall advise the Investment Policy Review Committee of any contradictions of federal or state law for consideration during its reviews conducted as described in Section 2.2.04.

2.2.20. Attachments.

Attachment A, “Glossary of Terms and Acronyms,” is incorporated by reference.

Attachment B, “California Municipal Treasurers Association Investment Policy Certification”
City Council Adoption: April 4September 21, 2022
ITEM 6.6 – Attachment B
Administrative Policy 2.2 - Page 11 of 18
Attachment A, “Glossary of Terms and Acronyms”
This Glossary of Terms and Acronyms contains common investment terminology to provide users with a better understanding of basic investment terms. It is intended to be used as a basic reference only, is not intended to be all inclusive, and should not be treated as a substitute for professional counsel or analysis.

ACCRUED INTEREST: Coupon interest accumulated on a bond or note since the last interest payment or, for a new issue, from the dated date to the date of delivery.

BANK DEPOSITS: Deposits in banks or other depository institutions that may be in the form of demand accounts (checking) or investments in accounts that have a fixed term and negotiated rate of interest.

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

BOND PROCEEDS: The money paid to the issuer by the purchaser or underwriter of a new issue of municipal securities. These moneys are used to finance the project or purpose for which the securities were issued and to pay certain costs of issuance as may be provided in the bond contract.

BONDS: A debt obligation of a firm or public entity. A bond represents the agreement to repay the debt in principal and, typically, in interest on the principal.

BROKER: A person or firm that acts as an intermediary by purchasing and selling securities for others rather than for its own account.

CASH FLOW: A comparison of cash receipts (revenues) to required payments (debt service, operating expenses, etc.).

CERTIFICATE OF DEPOSIT: A short-term, secured deposit in a financial institution that usually returns principal and interest to the lender at the end of the loan period. Certificates of Deposit (CDs) differ in terms of collateralization and marketability. CDs appropriate to public agency investing include:

Negotiable Certificates of Deposit – Generally, short-term debt instruments that pay interest and is issued by a bank, savings or federal association, state or federal credit union, or state-licensed branch of a foreign bank. The majority of negotiable CDs ITEM 6.6 – Attachment B
Administrative Policy 2.2 - Page 12 of 18
mature within six months while the average maturity is two weeks. Negotiable CDs are traded in a secondary market and are payable upon order to the bearer or initial depositor (investor). Negotiable CDs are insured by the FDIC up to $250,000, but they are not collateralized beyond that amount.

Non-Negotiable Certificates of Deposit – CDs that carry a penalty if redeemed prior to maturity. A secondary market does exist for non-negotiable CDs, but redemption includes a transaction cost that reduces returns to the investor. Non-negotiable CDs issued by banks and savings and loans are insured by the FDIC up to the amount of $250,000, including principal and interest. Amounts deposited above this amount may be secured with other forms of collateral through an agreement between the investor and the issuer. Collateral may include other securities, including treasuries or agency securities (e.g., issued by the Federal National Mortgage Association).

COLLATERALIZATION OF DEPOSITS: A process by which a bank or other financial institution pledges securities or other deposits for the purpose of securing the repayment of deposited funds.

COMMERCIAL PAPER: An unsecured short-term promissory note issued by corporations or municipalities, with maturities ranging from two to 270 days.

COUNTY POOLED INVESTMENT FUNDS: The aggregate of all funds from public agencies placed in the custody of the county treasurer or chief finance officer for investment and reinvestment.

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

CREDIT RATING: The credit worthiness of an investment. Credit ratings are issued by Nationally Recognized Statistical Rating Organizations (NRSROs) registered with the Securities and Exchange Commission. Three highly recognized NRSROs are Standard and Poor’s, Moody’s, and Fitch. The organizations use a primary letter designation (numbers or symbols may follow the letter designation) to indicate the quality of an investment. As an example, short-term ratings by Standard and Poor’s of A-1+ and Moody’s of P-1 indicate a prime or high-grade quality investment.

Long-term prime or high-grade quality investments would be rated AAA or Aaa by Standard and Poor’s and Moody’s, respectively. Rates beginning with letters B or C would typically indicate an investment of speculative and higher risk quality.

ITEM 6.6 – Attachment B
Administrative Policy 2.2 - Page 13 of 18
CREDIT RISK: The chance that an issuer will be unable to make scheduled payments of interest and principal on an outstanding obligation. Another concern for investors is that the market’s perception of an issuer/borrower’s credit will cause the market value of a security to fall, even if default is not expected.

CUSTODIAN: A bank or other financial institution that keeps custody of stock certificates and other assets.

DEALER: Someone who acts as a principal in all transactions, including underwriting, buying, and selling securities, including from his/her/their own account.

DELIVERY-VERSUS-PAYMENT (DVP): The payment of cash for securities as they are delivered and accepted for settlement.

DERIVATIVE: Securities that are based on, or derived from, some underlying asset, reference date, or index.

DISCOUNT: The difference between the par value of a security and the cost of the security, when the cost is below par. Investors purchase securities at a discount when return to the investor (yield) is higher than the stated coupon (interest rate) on the investment.

DISCOUNT RATE: The interest rate used in discounted cash flow analysis to determine the present value of future cash flows. The discount rate in discounted cash flow analysis takes into account not just the time value of money, but also the risk or uncertainty of future cash flows; the greater the uncertainty of future cash flows, the higher the discount rate.

DIVERSIFICATION: The allocation of different types of assets in a portfolio to mitigate risks and improve overall portfolio performance.

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

FIDUCIARY: An individual who holds something in trust for another and bears liability for its safekeeping.

GOVERNMENT ACCOUNTING STANDARDS BOARD (GASB): A standardsetting body, associated with the Financial Accounting Foundation, which prescribes ITEM 6.6 – Attachment B
Administrative Policy 2.2 - Page 14 of 18
standard accounting practices for governmental units.

INDEX: An indicator that is published on a periodic basis that shows the estimated price and/or yield levels for various groups of securities.

INTEREST: The amount a borrower pays to a lender for the use of his/her/their money.

INTEREST RATE RISK: The risk that an investment's value will change due to a change in the absolute level of interest rates, spread between two rates, shape of the yield curve, or any other interest rate relationship.

JOINT POWERS AUTHORITY POOLS: Investment pools involving the joint exercise of common investment powers between two or more public agencies with shares of beneficial interest issued pursuant to Government Code Section 6509.7.

LIQUIDITY: The measure of the ability to convert an instrument to cash on a given date at full face or par value.

LOCAL AGENCY INVESTMENT FUND (LAIF): A voluntary investment fund open to government entities and certain non-profit organizations in California that is managed by the State Treasurer’s Office.

LOCAL GOVERNMENT INVESTMENT POOLS: Investment pools that include the Local Agency Investment Fund (LAIF) and County Pooled Investment Funds.

These funds are not subject to the same SEC rules applicable to money market mutual funds. For this Administrative Policy, Joint Powers Authority Pools are not considered “Local Government Investment Pools.”
MARKET VALUE: The price at which a security is trading and presumably could be purchased or sold at a particular point in time.

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

MEDIUM-TERM NOTES: Corporate or depository institution debt securities meeting certain minimum quality standards (as specified in Government Code Section 53601) with a maximum remaining maturity of five years or less, issued by (a) corporations organized and operating within the United States or (b) depository institutions licensed by the United States or any state and operating within the United ITEM 6.6 – Attachment B
Administrative Policy 2.2 - Page 15 of 18
States. Instruments separately defined in, or authorized by, this Administrative Policy are not considered “Medium-Term Notes.”
MONEY MARKET MUTUAL FUNDS (MMFs): Mutual funds that invest exclusively in short-term money market instruments. MMFs seek the preservation of capital as a primary goal while maintaining a high degree of liquidity and providing income representative of the market for short term investments.

MORTGAGE-BACKED SECURITIES (MBS): Securities created when a mortgagee or a purchaser of residential real estate mortgages creates a pool of mortgages and markets undivided interests or participations in the pool. MBS owners receive a pro-rata share of the interest and principal cash flows (net of fees) that are “passed through” from the pool of mortgages. MBS are complex securities whose cash flow is determined by the characteristics of the mortgages that are pooled together. Investors in MBS face prepayment risk associated with the option of the underlying mortgagors to pre-pay or payoff their mortgage. Most MBS are issued and/or guaranteed by federal agencies and instrumentalities (e.g., Government National Mortgage Association (GNMA), Federal National Mortgage Association (FNMA), and Federal Home Loan Mortgage Corporation (FHLMC)).

MUNICIPAL NOTES, BONDS, AND OTHER OBLIGATIONS: Obligations issued by state and local governments to finance capital and operating expenses.

MUTUAL FUNDS: An investment company that pools money and can invest in a variety of securities, including fixed-income securities and money market instruments.

NATIONALLY RECOGNIZED STATISTICAL RATINGS ORGANIZATION
(NRSRO): A credit rating agency registered as a “Nationally Recognized Statistical Ratings Organization” with the Securities and Exchange Commission, consistent with the Credit Rating Agency Reform Act, the Dodd-Frank Wall Street Reform and Consumer Protection Act, and other applicable legislation and rulemaking, as may change from time-to-time.

NEW ISSUE: Securities sold during the initial distribution of an issue in a primary offering by the underwriter or underwriting syndicate.

NOTE: A written promise to pay a specified amount to a certain entity on demand or on a specified date. Usually bearing a short-term maturity of a year or less (though longer maturities are issued—see “Medium-Term Notes”).

ITEM 6.6 – Attachment B
Administrative Policy 2.2 - Page 16 of 18
PAR VALUE: The principal amount of a note or bond which must be paid at maturity. Par, also referred to as the “face amount” of a security, is the principal value stated on the face of the security. A par bond is one sold at a price of 100 percent of its principal amount.

PORTFOLIO: Combined holding of more than one stock, bond, commodity, real estate investment, cash equivalent, or other asset. The purpose of a portfolio is to reduce risk by diversification.

PREMIUM: The difference between the par value of a security and the cost of the security, when the cost is above par. Investors pay a premium to purchase a security when the return to the investor (yield) is lower than the stated coupon (interest rate) on the investment.

PRICE: The amount of monetary consideration required by a willing seller and a willing buyer to sell an investment on a particular date.

PRINCIPAL: The face value or par value of a debt instrument, or the amount of capital invested in a given security.

PRUDENT INVESTOR STANDARD: A standard of conduct where a person acts with care, skill, prudence, and diligence when investing, reinvesting, purchasing, acquiring, exchanging, selling, and managing funds. The test of whether the standard is being met is if a prudent person acting in such a situation would engage in similar conduct to ensure that investments safeguard principal and maintain liquidity.

REPURCHASE AGREEMENTS: An agreement of one party (for example, a financial institution) to sell securities to a second party (such as a local agency) and simultaneous agreement by the first party to repurchase the securities at a specified price from the second party on demand or at a specified date.

RISK: The uncertainty of maintaining the principal or interest associated with an investment due to a variety of factors.

SAFEKEEPING SERVICE: Offers storage and protection of assets provided by an institution serving as an agent.

SAFETY: In the context of investing public funds, safety relates to preserving the principal of an investment in an investment portfolio; local agencies address the concerns of safety by controlling exposure to risks.

ITEM 6.6 – Attachment B
Administrative Policy 2.2 - Page 17 of 18
SECURITIES AND EXCHANGE COMMISSION (SEC): The federal agency responsible for supervising and regulating the securities industry.

TRUSTEE OR TRUST COMPANY: A financial institution with powers to act in a fiduciary capacity for the benefit of the bondholders in enforcing the terms of the bond contract.

UNDERWRITER: A dealer that purchases a new issue of municipal securities for resale.

UNITED STATES AGENCY OBLIGATIONS: Federal agency or United States government-sponsored enterprise obligations, participations, or other instruments, including those issued by or fully guaranteed as to principal and interest by federal agencies or United States government-sponsored enterprises, including federal agency mortgage-backed securities. Types of instruments may include mortgagebacked securities from the Federal National Mortgage Association (FNMA) including Fannie Mae and Freddie Mac securities.

UNITED STATES TREASURY OBLIGATIONS: Debt obligations of the United States government sold by the Treasury Department in the forms of bills, notes, and bonds. Bills are short-term obligations that mature in one year or less and are sold at a discount. Notes are obligations that mature between one year and 10 years. Bonds are long-term obligations that generally mature in 10 years or more.

YIELD: The current rate of return on an investment security generally expressed as a percentage of the securities current price.

YIELD CURVE: A graphic representation that shows the relationship at a given point in time between yields and maturity for bonds that are identical in every way except maturity.

ITEM 6.6 – Attachment B
Administrative Policy 2.2 - Page 18 of 18
Attachment B, “California Municipal Treasurers Association Investment Policy Certification”
ITEM 6.6 – Attachment B
Administrative Policy 2.2 - Page 19 of 18
The City’s Investment of Financial Assets policy, as adopted by the City Council on October 16, 2019April 4, 2022, was certified by the California Municipal Treasurers Association (CMTA) on December 16, 2019June 27, 2022.

ITEM 6.6 – Attachment B
Administrative Policy 2.2 - Page 20 of 18
Since receiving certification, the City’s modifications of the Investment of Financial Assets policy have been limited to addressing recommendations made by CMTA evaluators (which included clarifying authorized investment, collateralization, and reporting requirements), clarifying requirements for several previously authorized investments, removing limitations on investment types based solely on cash flow needs, newly authorizing investments in Medium-Term Notes, removing Passbook Savings Demand Deposits as authorized investments, more explicitly prescribing reporting requirements, updating the glossary of terms and acronyms, and making various clarifying and non-substantive changes.

Since receiving certification, the City’s modifications of the Investment of Financial Assets policy have been limited to updating this Attachment B.

6.7 CREDIT CARD, DEBIT CARD, AND PREPAID

CARD PAYMENT PROCESSING
(NO REPORT)
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6.8 ARBORIST AND TREE RISK ASSESSMENT

SERVICES
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ITEM 6.8
CLW-Monarch Environmental Services – Extension 9/21/2022

EXTENSION OF THE

AGREEMENT FOR CONSULTANT SERVICES

BETWEEN THE

CITY OF LAGUNA WOODS
AND

MONARCH ENVIRONMENTAL SERVICES

FOR ARBORIST AND TREE RISK ASSESSMENT SERVICES
This EXTENSION of the AGREEMENT FOR CONSULTANT SERVICES ("AGREEMENT") that was approved by the City Council on December 16, 2020, by and among the City of Laguna Woods, a California municipal corporation ("CITY") and Monarch Environmental Services ("CONSULTANT"), is made and entered into this _______________ by and among the CITY and CONSULTANT.

WHEREAS, the initial term of the AGREEMENT was for the period between December 16, 2020 and 11:59 p.m. on June 30, 2022; and
WHEREAS, the AGREEMENT allows for the term of the AGREEMENT to be extended upon written agreement of both parties to the AGREEMENT; and WHEREAS, the AGREEMENT was previously extended through 11:59 p.m. on September 30, 2022.

NOW THEREFORE, the parties amend the AGREEMENT as follows:

1. CITY and CONSULTANT hereby agree to an EXTENSION of the AGREEMENT for a period beginning on October 1, 2022 and ending at 11:59 p.m. on December 31, 2022 with no changes to the terms and conditions of the AGREEMENT except as specified herein.

IN WITNESS WHEREOF, the parties hereto have caused this EXTENSION to be executed the day and year first above written.

CITY OF LAGUNA WOODS:

By
Christopher Macon, City Manager
CONSULTANT:

By
Matt Davenport, President
APPROVED AS TO FORM:

Alisha Patterson, City Attorney
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6.9 CONFLICT OF INTEREST CODE
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ITEM 6.9 – Attachment A
R 22-XX 1 XX-XX-2022
RESOLUTION NO. 22-XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAGUNA

WOODS, CALIFORNIA, DETERMINING THAT NO CHANGES IN THE
CONFLICT OF INTEREST CODE ADOPTED BY RESOLUTION NO.
18-27 ARE NECESSARY FOLLOWING THE REVIEW REQUIRED BY
CALIFORNIA GOVERNMENT CODE SECTION 87306.5
WHEREAS, the Political Reform Act of 1974 and California Government Code Section 81000 et seq. (“Act”), require local governmental agencies to adopt a conflict of interest code pursuant to the Act; and
WHEREAS, California Government Code Section 87306.5 requires local governmental agencies to review conflict of interest codes at least every evennumbered year and identify whether any changes in conflict of interest codes are necessitated by changed circumstances by October 1 of the same year; and WHEREAS, the City’s existing conflict of interest code was adopted on September 16, 2020 by Resolution No. 20-43.

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

WOODS, DOES HEREBY RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS:

SECTION 1. After reviewing the existing conflict of interest code adopted by Resolution No. 18-27, the City Council hereby determines that there are no changed conditions that necessitate changes in the existing conflict of interest code.

SECTION 2. The Mayor shall sign this resolution and the City Clerk shall attest and certify to the passage and adoption thereof.

PASSED, APPROVED AND ADOPTED on this XX day of XX 2022. _______________________________
CAROL MOORE, Mayor
ITEM 6.9 – Attachment A
R 22-XX 2 XX-XX-2022
ATTEST:
________________________________
YOLIE TRIPPY, CMC, City Clerk

STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.

CITY OF LAGUNA WOODS )
I, YOLIE TRIPPY, City Clerk of the City of Laguna Woods, do HEREBY CERTIFY that the foregoing Resolution No. 22-XX was duly adopted by the City Council of the City of Laguna Woods at a regular meeting thereof, held on the XX day of XX 2022, by the following vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:
_________________________________
YOLIE TRIPPY, CMC, City Clerk
ITEM 6.9 - Attachment B
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6.10 AD HOC ANTI-HATE ADVISORY COUNCIL

COMMITTEE
(AGENDIZED BY MAYOR PRO TEM CONNERS

AND COUNCILMEMBER HORNE)
(NO REPORT)
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7.1 SIGN REGULATIONS
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ITEM 7.1
CC  09-21-2022 RM ITEM 7.1 – AR Page 1 of 4
City of Laguna Woods
Agenda Report
TO: Honorable Mayor and City Councilmembers
FROM: Christopher Macon, City Manager
FOR: September 21, 2022 Regular Meeting
SUBJECT: Sign Regulations
Recommendation

1. Receive staff report.

AND

2. Open public hearing.

AND

3. Receive public testimony.

AND

4. Close public hearing.

AND

5. Approve the introduction and first reading of an ordinance – read by title with further reading waived – titled:

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAGUNA
WOODS, CALIFORNIA, AMENDING SECTIONS 13.20.030, 13.20.130, AND 13.20.160 OF THE LAGUNA WOODS MUNICIPAL CODE

RELATED TO SIGN REGULATIONS, AND DETERMINING AND
ITEM 7.1
ITEM 7.1 – AR Page 2 of 4 CC  09-21-2022 RM

CERTIFYING THAT THE ORDINANCE IS EXEMPT FROM THE

CALIFORNIA ENVIRONMENTAL QUALITY ACT
Background
This item was not initiated by staff – either at this meeting or when it was first considered by the City Council on May 18, 2022 and May 26, 2022. The May 18, 2022 and May 26, 2022 meetings were the result of a request received from a private property owner for the City Council to consider permitting gas stations to use light-emitting diode (“LED”) technology in permanent monument signs. The Laguna Woods Municipal Code Section 13.20.130(7) explicitly prohibits “Lightemitting diode (LED) or neon signs displayed on the exterior of any property.” This item was briefly discussed at the City Council meeting on May 18, 2022 with more robust discussion occurring on May 26, 2022.

At the May 18, 2022 and May 26, 2022 meetings, the City Council was advised that staff agendized the item to seek direction and that staff’s only recommendation was that if there was interest in considering permitting the use of LED technology in permanent signs, that any prospective ordinance not limit the use of LED technology to a particular type of business (e.g., gas stations) due to First Amendment limitations on the regulation of sign content. Rather, if so desired, staff recommended drafting an ordinance that would permit the use of LED technology in any permanent sign for any purpose when approved by the City Council as part of a sign program. Sign programs are discretionary applications for which the City Council has broad discretion to approve or deny on a case-by-case basis.

On May 26, 2022, following public comments and discussion, the City Council voted unanimously to direct the City Manager to draft an ordinance for future consideration by the City Council that would amend the Laguna Woods Municipal Code to permit the use of LED technology in any permanent sign for any purpose when approved by the City Council as part of a sign program.

Discussion
Today’s meeting is an opportunity for City Council action, as well as public input, on proposed amendments of the sign regulations set forth in sections 13.20.030,

13.20.130, and 13.20.160 of the Laguna Woods Municipal Code (Attachment A).

If the City Council wishes to permit the use of LED technology in permanent ITEM 7.1
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signs, staff recommends conducting a public hearing, accepting public testimony, and approving the introduction and first reading of the proposed ordinance.

The proposed amendments would:
• Modify the definition of “electronic message board sign” to eliminate an exclusion of “time and temperature displays,” which amounts to a regulation of sign content likely inconsistent with First Amendment limitations. Two of the sign types currently prohibited by the Laguna Woods Municipal Code may implicate the use of LED technology, which is why both “electronic message board signs” and “light-emitting diode (LED) signs displayed on the exterior of any property” are addressed in the proposed amendments. • Allow electronic message board signs, or LED signs displayed on the exterior of any property, only when approved by the City Council as part of a sign program.
• Require the City Council to make the following finding as a prerequisite for approving any sign program that includes electronic message board signs, or the display of LED signs on the exterior of any property:
“The proposed signs are displayed, programmed, or otherwise operated in a manner that effectively minimizes glare at all times when illuminated.” [For reference, the Merriam-Webster Dictionary defines “glare” as, in part, “a harsh uncomfortably bright light 1 .”]
The proposed finding is intended to be responsive to previous City Council discussion regarding glare and would explicitly allow staff to require sign program applicants to address glare minimization in their applications.

In addition to the proposed required finding, Laguna Woods Municipal Code Section 13.20.060(b) regulates illumination as follows:
“Means of illumination. All illumination from or upon any sign shall be shaded, shielded, directed, and/or reduced to prevent glare and reflection onto surrounding properties. Illumination shall not be 1 “Glare.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriamwebster.com/dictionary/glare. Accessed 14 Sep. 2022.

ITEM 7.1
ITEM 7.1 – AR Page 4 of 4 CC  09-21-2022 RM
unduly bright, meaning that it shall not be in excess of that which is reasonably necessary to make the sign readable to an average person.

Externally-illuminated signs shall be lighted by screened or hidden light sources. With the exception of the use of neon illumination in window signs as permitted in this chapter, the use of neon or nonstandard lighting colors is prohibited.” If the recommended action is taken at today’s meeting, staff anticipates scheduling the second reading and consideration of adoption of the proposed ordinance for the City Council’s next regular meeting on October 19, 2022.

Environmental Review
It can be seen with certainty that this project has no possibility of having a significant effect on the environment. In the absence of any pending application for any signs that might implicate the proposed ordinance, any specific environmental effects would be speculative. Therefore, the adoption of the proposed ordinance is not a project subject to the California Environmental Quality Act (“CEQA”) pursuant to Section 15061(b)(3) of Title 14 of the California Code of Regulations.

Signs prospectively approved under the proposed ordinance may be categorically exempt from the CEQA pursuant to Section 15311 of Title 14 of the California Code of Regulations, if they consist of approvals related to the construction or placement of on-premise signs, which are minor structures accessory to (appurtenant to) existing commercial, industrial, or institutional facilities.

Fiscal Impact
Sufficient funds to support this project are included in the City’s budget.

Attachment: A – Proposed Ordinance
Exhibit A – Proposed Ordinance Text
ITEM 7.1 – Attachment A
O 22-XX 1 XX-XX-2022
ORDINANCE NO. 22-XX

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAGUNA
WOODS, CALIFORNIA, AMENDING SECTIONS 13.20.030, 13.20.130, AND 13.20.160 OF THE LAGUNA WOODS MUNICIPAL CODE

RELATED TO SIGN REGULATIONS, AND DETERMINING AND

CERTIFYING THAT THE ORDINANCE IS EXEMPT FROM THE

CALIFORNIA ENVIRONMENTAL QUALITY ACT
WHEREAS, the City Council wishes to amend the Laguna Woods Municipal Code to permit the use of light-emitting diode technology in any permanent sign for any purpose when approved by the City Council as part of a sign program; and WHEREAS, to implement the City Council’s wishes, staff has recommended amendments of the Laguna Woods Municipal Code as set forth in the attached Exhibit A to this Ordinance (the “Code Amendments”); and WHEREAS, the Community Development Director or his/her/their designee prepared an exhibit, including proposed language and terminology for the proposed Code Amendments and any additional information and documents deemed necessary for the City Council to take action, and such exhibit was available for public inspection at City Hall and, upon request, was supplied to all persons desiring a copy, at least 10 days prior to the scheduled City Council public hearing date; and WHEREAS, on September 21, 2022, the City Council held a duly noticed public hearing on the proposed Code Amendments at which it considered all of the information, evidence, and testimony presented, both written and oral.

THE CITY COUNCIL OF THE CITY OF LAGUNA WOODS DOES
HEREBY ORDAIN AS FOLLOWS:

SECTION 1. The above recitals are true and correct.

SECTION 2. The City Council hereby finds and determines that (i) each of the recitals to this Ordinance are true and correct, and are adopted herein as findings; (ii) the Code Amendments comply with all applicable requirements of State law; (iii) the Code Amendments will not adversely affect the health, safety, or welfare of the residents within the community; (iv) the Code Amendments are in the public interest of the City of Laguna Woods; and, (v) the Code Amendments are consistent with the Laguna Woods General Plan and its various elements.

ITEM 7.1 – Attachment A
O 22-XX 2 XX-XX-2022
SECTION 3. After reviewing the entire project record, the City Council hereby determines and certifies that it can be seen with certainty that this Ordinance has no possibility of having a significant effect on the environment. In the absence of any pending application for any signs that might implicate the Ordinance, any specific environmental effects would be speculative. Therefore, the adoption of the Ordinance is not a project subject to the California Environmental Quality Act (“CEQA”) pursuant to Section 15061(b)(3) of Title 14 of the California Code of Regulations. Signs prospectively approved under the Ordinance may be categorically exempt from the CEQA pursuant to Section 15311 of Title 14 of the California Code of Regulations, if they consist of approvals related to the construction or placement of on-premise signs, which are minor structures accessory to (appurtenant to) existing commercial, industrial, or institutional facilities.

SECTION 4. Sections 13.20.030, 13.20.130, and 13.20.160 of the Laguna Woods Municipal Code are hereby amended to read as set forth in Exhibit A, attached to this Ordinance and incorporated herein by this reference.

SECTION 5. This Ordinance shall take effect and be in full force and operation thirty (30) days after adoption.

SECTION 6. If any section, subsection, subdivision, paragraph, sentence, clause, or phrase added by this Ordinance, or any part thereof, is for any reason held to be unconstitutional or invalid or ineffective by any court of competent jurisdiction, such decision shall not affect the validity of effectiveness of the remaining portions of this Ordinance or any part thereof. The City Council hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause, or phrase thereof irrespective of the fact that any one or more subsections, subdivisions, paragraphs sentences, clauses, or phrases are declared unconstitutional, invalid, or ineffective.

SECTION 7. The Mayor shall sign this Ordinance.

SECTION 8. The City Clerk shall certify to the passage of this Ordinance and shall cause this Ordinance to be published or posted as required by law.

SECTION 9. All of the above-referenced documents and information have been and are on file with the City Clerk of the City.

ITEM 7.1 – Attachment A
O 22-XX 3 XX-XX-2022
PASSED, APPROVED AND ADOPTED this XX day of XX 2022.
_____________________________________
CAROL MOORE, Mayor
ATTEST:
_____________________________________
YOLIE TRIPPY, CMC, City Clerk
APPROVED AS TO FORM:
_____________________________________
ALISHA PATTERSON, City Attorney

STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.

CITY OF LAGUNA WOODS )
I, YOLIE TRIPPY, City Clerk of the City of Laguna Woods, do HEREBY CERTIFY that the foregoing Ordinance No. 22-XX was duly introduced and placed upon its first reading at a regular meeting of the City Council on the XX day of XX 2022, and that thereafter, said Ordinance was duly adopted and passed at a regular meeting of the City Council on the XX day of XX 2022 by the following vote to wit:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:
_______________________________________
YOLIE TRIPPY, CMC, City Clerk
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ITEM 7.1 – Exhibit A to Attachment A
-1-

EXHIBIT A

CODE AMENDMENTS
The definition of “Electronic message board sign” in Section 13.20.030(a) (“Definitions”) of Chapter 13.20 (“Sign Regulations”) of Title 13 (“Zoning”) of the Laguna Woods Municipal Code is amended to read as follows (deletions shown with strike through):

Electronic message board sign shall mean a sign with a fixed or changing display composed of a series of lights. (Does not include time and temperature displays.)
Section 13.20.130 (“Prohibited signs”) of Chapter 13.20 (“Sign Regulations”) of Title 13 (“Zoning”) of the Laguna Woods Municipal Code is amended to read as follows (additions shown with underlining and deletions shown with strike through):

Sec. 13.20.130. - Prohibited signs.

The following types of signs are prohibited unless specifically permitted in this chapter:
(1) Temporary signs not specifically allowed in this chapter. (2) Signs held, worn, waved, or rotated by any individual, or attached or affixed to any animal, and used to attract attention for the purpose of promoting products and/or services or to direct individuals to a particular location.
(3) Signs that emit any noise.
(4) Balloons, blimps, hot air balloons, or similar devices. (5) Electronic message board signs, or light-emitting diode (LED) signs displayed on the exterior of any property, except when approved as part of a sign program.
(6) Signs that use florescent colors or paints.

ITEM 7.1 – Exhibit A to Attachment A
-2-
(7) Light-emitting diode (LED) or nNeon signs displayed on the exterior of any property.
(8) Flashing, blinking, rotating, revolving, wind motion, inflatable, laser beam, searchlight, or spotlight signs.
(9) Billboards.
(10) Portable signs.
(11) Roof signs.
(12) Signs that display, imply, identify, or advertise activities which are illegal under federal, state, or local laws.
(13) Signs that display, imply, identify, or advertise graphic sexual activities or images or contain profane copy or nude images. (14) Signs that simulate or imitate in size, color, content, coloring or design any traffic signal, sign or device, or which makes use of the words "Stop," "Look," "Warning," "Caution," "Danger" or any other words, phrases, symbols or characters in a manner to interfere with, mislead, or confuse traffic.
(15) Signs that are located on, attached to, extending into or over, or impeding any fire hydrants, legal fire lanes, or City property, including but not limited to traffic signals, streetlights, and utility poles. (16) Signs that are unsafe or constitute a direct and immediate hazard to public health, safety or welfare by reason of design, construction, location, condition, orientation, or any other factor.
(17) Abandoned signs.
(18) Advertising device/display.

Section 13.20.160(c) (“Sign programs”) of Chapter 13.20 (“Sign Regulations”) of Title 13 (“Zoning”) of the Laguna Woods Municipal Code is amended to read ITEM 7.1 – Exhibit A to Attachment A
-3-
as follows (additions shown with underlining and deletions shown with strike through):
(c) Sign program required. Sign programs shall be required for:
(1) Each new or remodeled commercial center, office complex, business park, or similar multi-tenant site, regardless of parcelization; and
(2) Each building that proposes any combination of three or more permanent signs or any permanent signage that would not comply with this chapter.; and
(3) Any use of one or more electronic message board signs, or the display of one or more light-emitting diode (LED) signs on the exterior of any property.

Section 13.20.160(e) (“Sign programs”) of Chapter 13.20 (“Sign Regulations”) of Title 13 (“Zoning”) of the Laguna Woods Municipal Code is amended to read as follows (additions shown with underlining and deletions shown with strike through):
(e) Findings. The City Council shall approve a sign program if it can make all of the following findings:
(1) The proposed signs are well-designed, consistent with any design criteria otherwise applicable to the sign property, compatible with community character and harmonious with surrounding properties, buildings, and streetscapes;
(2) The proposed signs are clear and legible in the circumstances in which they are seen, including for purposes of promoting awareness of local businesses and activities;
(3) The proposed signs are appropriate to the type of business or activity to which they pertain; and
(4) The proposed signs are displayed in a manner that does not harm public health, safety and welfare.; and
ITEM 7.1 – Exhibit A to Attachment A
-4-
(5) For sign programs including any use of one or more electronic message board signs, or the display of one or more light-emitting diode (LED) signs on the exterior of any property. The proposed signs are displayed, programmed, or otherwise operated in a manner that effectively minimizes glare at all times when illuminated.

8.1 NEW ORANGE COUNTY FIRE AUTHORITY FIRE

STATION
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ITEM 8.1
CC  09-21-2022 RM ITEM 8.1 – AR Page 1 of 4
City of Laguna Woods
Agenda Report
TO: Honorable Mayor and City Councilmembers
FROM: Christopher Macon, City Manager
FOR: September 21, 2022 Regular Meeting
SUBJECT: New Orange County Fire Authority Fire Station
Recommendation
Approve, in non-binding concept, the long-term lease of approximately 0.32 acres of the City Centre Park property (24121 Moulton Parkway, Laguna Woods, CA 92637; Assessor’s Parcel Number: 616-021-18) for use as a new Orange County Fire Authority fire station and authorize the City Manager and City Attorney to take actions and incur costs necessary to:
(a) Comply with applicable state laws regarding the lease of park property for nonpark purposes, and other state laws as may be determined to apply; (b) Unencumber the property of deed restrictions that would otherwise preclude the construction and operation of a fire station;
(c) Negotiate – for future consideration by the City Council – agreements with the Orange County Fire Authority for the construction and operation of a fire station including, but not limited to, a long-term land-lease agreement; (d) Partner with the Orange County Fire Authority to contact surrounding property owners to discuss a potential new fire station and solicit input on factors to be considered during any future design, construction, and operation; (e) Coordinate with the Orange County Fire Authority on matters affecting the design of a fire station including, but not limited to, modifications and easements related to traffic control devices, medians, sidewalks, and other City property, and public access to the remaining portion of City Centre Park; and (f) Negotiate and enter into cost recovery agreements with the Orange County Fire Authority to reimburse the City for those costs associated with this project which are mutually agreed upon as the Orange County Fire Authority’s responsibility.

ITEM 8.1
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Background
The Orange County Fire Authority has requested that the City consider allowing a portion of the City Centre Park Property (24121 Moulton Parkway, Laguna Woods, CA 92637; Assessor’s Parcel Number: 616-021-18) to be used as a new fire station. The potential benefits of such a new fire station include improved response times in Laguna Woods, as shown on the Orange County Fire Authority-produced exhibits included as Attachment A. Orange County Fire Authority staff will be present at this meeting to further describe potential benefits.

Discussion
Today’s meeting is an opportunity for City Council action, as well as public input, on the conceptual use of approximately 0.32 acres of the City Centre Park property for a new Orange County Fire Authority fire station. Staff recommends that the City Council take actions that would allow staff to prepare a long-term land-lease agreement for future consideration by the City Council. The City Council is not being asked to enter into a land-lease agreement at this meeting and would retain the ability to approve or deny such an agreement in the future.

In accordance with California Government Code Section 54956.8, matters related to the price and terms of payment of any prospective land-lease agreement may be discussed in future closed session meetings of the City Council.

City and Orange County Fire Authority staff have preliminarily discussed the area that would be required to accommodate a new fire station at the City Centre Park property, resulting in the conceptual limits shown in Attachment B. As presently conceptualized, the wider, flatter portion of the City Centre Park property closest to the Ayres Hotel would remain available for park use, while the narrower, more sloped portion closest to Moulton Parkway would be repurposed as a new fire station. Staff’s preference would be for the remaining park portion of the property to continue to be accessible from Moulton Parkway; however, design factors may preclude such access. This is one of several matters affecting the design of the fire station that staff would coordinate with the Orange County Fire Authority on.

A key consideration for the City would be the manner in which Moulton Parkway would need to be reconstructed to accommodate left turns out of a new fire station.

Conceptually, median modifications would be required to allow fire engines and other emergency response vehicles to make left turns, in addition to equipment and ITEM 8.1
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programming that would trigger red lights on northbound Moulton Parkway at El Toro Road and southbound Moulton Parkway at Laguna Woods Village Gate 16.

The City’s traffic engineers would be involved in this matter. Orange County Fire Authority staff have stated that similar arrangements exist at other fire stations, as it is not always possible to construct fire stations at signalized intersections.

City Centre Park is currently subject to a deed restriction that was placed upon it by California State Parks as a condition of the City using Proposition 40 (2002) grant funds to make improvements to the park. The deed restriction precludes the construction and operation of a fire station until June 30, 2031. Staff has discussed the deed restriction with California State Parks staff and believes an opportunity exists to unencumber the property of the deed restriction, subject to agreement by California State Parks and the California State Legislature.

Though the City Council could theoretically choose to sell property to the Orange County Fire Authority, staff does not recommend doing so as it would introduce additional complexity (and time) to this project, without yielding any clear benefit for the City. Orange County Fire Authority staff have stated that they are amenable to the concept of a long-term land-lease agreement and collaboration with the City as outlined in this agenda report.

Recommended action (d) involves the City and the Orange County Fire Authority partnering to contact surrounding property owners to discuss a potential new fire station and solicit input on factors to be considered during any future design, construction, and operation. Surrounding property owners are as follows:

Table 1: Surrounding Properties
Assessor’s Parcel Number Property Owner
616-012-02 El Toro Water District
616-012-17 Golden Rain Foundation of Laguna Hills TR
616-012-23 Ayres-Laguna Woods LP
616-021-36 Golden Rain Foundation of Laguna Hills
If the City Council takes the recommended actions at this meeting, staff estimates that it could take upwards of 12 months to address legal requirements and deed restrictions, such that a portion of the City Centre Park property could be leased to the Orange County Fire Authority, subject to future approval by the City Council and the Orange County Fire Authority’s Board of Directors. With that timeline in mind, and based on preliminary discussions with Orange County Fire Authority ITEM 8.1
ITEM 8.1 – AR Page 4 of 4 CC  09-21-2022 RM
staff, the earliest that construction might potentially begin on a new fire station is Fiscal Year 2024-25. These time estimates are subject to change.

Environmental Review
At this point, discussion of a new fire station is conceptual and lacks the specificity required to review the project pursuant to the California Environmental Quality Act (“CEQA”). Environmental review would occur at a later date.

Fiscal Impact
Recommended action (f) would authorize staff to negotiate and enter into cost recovery agreements with the Orange County Fire Authority to reimburse the City for those costs associated with this project which are mutually agreed upon as the Orange County Fire Authority’s responsibility.

Attachments: A – Orange County Fire Authority Conceptual Response Time Exhibits B – Potential Land Lease Area
ITEM 8.1 – Attachment A
Orange County Fire Authority Conceptual Response Time Exhibits “FS22” and “ORC22” = Existing Orange County Fire Authority Station 22 ITEM 8.1 – Attachment A
“FS22” and “ORC22” = Existing Orange County Fire Authority Station 22 “FS 12” = Potential New Orange County Fire Authority Station 12 Potential Land
Lease Area
ITEM 8.1 - Attachment B