Agenda packet, first session — Los Altos City Council, March 28, 2023 (part 1 of 3)

CITY COUNCIL MEETING -

SECOND AMENDMENT
3/24/23
AGENDA
7:00 PM - Tuesday, March 28, 2023
via Videoconference and In Person
Please Note: The City Council will meet in person as well as via Telephone/Video Conference Telephone: 1-669-444-9171 / Webinar ID: 860 8720 0853
https://losaltosca-gov.zoom.us/j/86087200853?pwd=NnRMb0gzdThEMExQRXhXanFjbGZyQT09 Passcode: 353132
PLEASE NOTE: Councilmember Lee Eng will participate in the meeting via videoconference from the site listed below. The meeting agenda will be posted on the videoconference site, which is accessible to the public. Anyone wishing to address the Council from the videoconference site will be provided with an opportunity to do so.

Location:

Courtyard Marriott Room #1151
901 L Street, NW
Washington, DC 20001
TO PARTICIPATE IN-PERSON: Members of the public may also participate in person by being present at the Los Altos Council Chamber at Los Altos City Hall located at 1 N. San Antonio Rd, Los Altos, CA.

TO PARTICIPATE VIA VIDEO: Follow the link above. Members of the public will need to have a working microphone on their device and must have the latest version of ZOOM installed (available at https://zoom.us/download). To request to speak, please use the “Raise hand” feature located at the bottom of the screen.

TO PARTICPATE VIA TELEPHONE: Members of the public may also participate via telephone by calling the number listed above. To request to speak, press *9 on your telephone.

TO SUBMIT WRITTEN COMMENTS: Prior to the meeting, comments on matters listed on the agenda may be emailed to [email protected]. Emails sent to this email address are sent to/received immediately by the City Council. Please include a subject line in the following format:

PUBLIC COMMENT AGENDA ITEM ## - MEETING DATE
Correspondence submitted in hard copy/paper must be received by 2:00 PM on the day of the meeting to ensure distribution prior to the meeting. Correspondence received prior to the meeting will be included in the public record. .
1 3/28/2023 CITY COUNCIL MEETING - SECOND AMENDMENT 3/24/23 AGENDA Page 2 of 4 Public testimony will be taken at the direction of the Mayor, and members of the public may only comment during times allotted for public comments.

AGENDA

CALL MEETING TO ORDER

ESTABLISH QUORUM

PLEDGE ALLEGIANCE TO THE FLAG

REPORT ON CLOSED SESSION

CHANGES TO THE ORDER OF THE AGENDA

PUBLIC COMMENTS ON ITEMS NOT ON THE AGENDA
Members of the audience may bring to the Council's attention any item that is not on the agenda. Speakers are generally given two or three minutes, at the discretion of the Mayor. Please be advised that, by law, the City Council is unable to discuss or take action on issues presented during the Public Comment Period. According to State Law (also known as “The Brown Act”) items must first be noted on the agenda before any discussion or action.
i. Public Comment Not on Agenda

SPECIAL ITEM
A. Women's History Month Proclamation

CONSENT CALENDAR
These items will be considered by one motion unless any member of the Council or audience wishes to remove an item for discussion. Any item removed from the Consent Calendar for discussion will be handled at the discretion of the Mayor.

1. Minutes: Approve Minutes of the City Council Regular Meeting of February 28, 2023. (A.

Rodriguez)

2. Minutes: Approve Minutes of the City Council Retreat of February 21, 2023. (A. Rodriguez)

3. Receive and Accept: Treasurer’s Report – Month Ended December 31, 2022 (J. Du)

4. Receive and Accept: Quarterly Investment Portfolio Report – Quarter Ended December 31, 2022 (J. Du)

5. City Council Goals: Adopt a Resolution affirming the City Council Strategic Goals (J. Maginot)

6. Award Construction Contract for Sewer System Repair Program, Project WW01001: Award the construction contract for the Base Bid and the Additive Alternate No. 1 (Total 2 3/28/2023 CITY COUNCIL MEETING - SECOND AMENDMENT 3/24/23 AGENDA Page 3 of 4 Bid) for the Sewer System Repair Program Project WW-01001 to Casey Construction, Inc. as the lowest responsive bidder submitting a bid in the amount not-to-exceed $778,550 and approve the City Manager the authority up to 15% construction contingency if needed, in the amount not-toexceed $116,783 (T. Nguyen)

7. Santa Clara Valley Runoff Pollution Prevention Program: Approve Contract Amendment No. 4 with Santa Clara Valley Runoff Pollution Prevention Program (SCVURPPP); find that the approval of the amendment is exempt from review under the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines Sections 15061(b)(3) and 15308 (E. McDannold)

8. 2022 Housing Element Annual Progress Report: Adopt a resolution authorizing staff to submit the Housing Element Annual Progress Report to HCD (S. Williams)

9. SVCE Decarbonization Grant Program Agreement: Adopt Resolution 2023-___ authorizing the City Manager to 1) Accept the SVCE Decarbonization Grant Program Agreement for the design, procurement, and construction of the Energization Station Project (CF-XXX), 2) Appropriate the grant funds of $200,684 to the CIP Project Funds (CF-XXX), and 3) Transfer $8,500 from Sustainability Operating Budget (5330-5270) to the CIP Project Funds (CF-XXX) (E. McDannold)

10. 2023 Update of City Investment Policy: Adopt the revised Investment Policy for 2023 (J. Du)

11. Fiscal Year 2022 Audited Financial Statements and Compliance reports: Accept Fiscal Year 2022 Audited Financial Statements and Compliance reports (J. Du)

12. Hybrid Ford Police Interceptor Vehicles: Approve Purchase of two Marked Patrol Hybrid Ford Police Vehicles from Folsom Lake Ford for a total of $114,284.88 (K. Krauss)

PUBLIC HEARINGS

13. Single-use Foodware Accessories and Condiments Ordinance in Compliance with AB 1276:

Introduce and waive further reading of a Single-use Foodware Accessories and Condiments Ordinance, in compliance with AB 1276, of the City Council of the City of Los Altos adding Chapter 6.45 (Single-use Foodware Accessories and Condiments) to Title 6 (Health and Safety) of the Los Altos Municipal Code adopting by reference Chapter 5.2 (commencing with section 42270) of Part 3 of Division 30 of the Public Resources Code prohibiting a food facility from providing any single-use foodware accessory or standard condiment unless requested by consumer and authorizing City and County enforcement and penalties, and set a Public Hearing on April 11, 2023 for adoption of the Ordinance. (T. Katbi)

DISCUSSION ITEMS

14. Administrative Appeal: 389 and 425 1st Street

15. AB 481 Military Equipment Use Annual Report: Review and renew Ordinance No. 2023-489 by introducing and waiving further reading of Ordinance No. 2023-489 approving Los Altos Police Policy 709 pertaining to the funding, acquisition, and use of military equipment as mandated by Assembly Bill 481 (K. Krauss)
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16. Adopt Housing Element Update Ordinance: Adopt an ordinance of the City Council of the City of Los Altos amending chapters 2.08, 12.44, 13.04, 14.76, and 14.78 of the Los Altos municipal code to implement certain provisions of program 3.H and 3.K of the sixth cycle Housing Element Update, this ordinance is exempt from environmental review pursuant to section 15061(b)(3) of the state guidelines implementing the California environmental quality act of 1970. (N. Zornes)

17. Update on Return to In-Person City Council and Commission meetings: Receive an update on the return to in-person City Council and Commission meetings and provide direction if needed (J. Maginot)

18. SB43 Support Letter: Discuss and Provide Direction regarding the SB43 Letter of Support regarding Mental Health Reforms

INFORMATIONAL ITEMS ONLY

19. Tentative Council Calendar

COUNCIL/STAFF REPORTS AND DIRECTIONS ON FUTURE AGENDA ITEMS

ADJOURNMENT
(Council Norms: It will be the custom to have a recess at approximately 9:00 p.m. Prior to the recess, the Mayor shall announce whether any items will be carried over to the next meeting. The established hour after which no new items will be started is 11:00 p.m. Remaining items, however, may be considered by consensus of the Council.)

SPECIAL NOTICES TO THE PUBLIC
In compliance with the Americans with Disabilities Act, the City of Los Altos will make reasonable arrangements to ensure accessibility to this meeting. If you need special assistance to participate in this meeting, please contact the City Clerk 72 hours prior to the meeting at (650) 947-2610.

Agendas Staff Reports and some associated documents for City Council items may be viewed on the Internet at http://www.losaltosca.gov/citycouncil/online/index.html.

All public records relating to an open session item on this agenda, which are not exempt from disclosure pursuant to the California Public Records Act, and that are distributed to a majority of the legislative body, will be available for public inspection at the Office of the City Clerk’s Office, City of Los Altos, located at One North San Antonio Road, Los Altos, California at the same time that the public records are distributed or made available to the legislative body.

If you wish to provide written materials, please provide the City Clerk with 10 copies of any document that you would like to submit to the City Council for the public record. 4 PUBLIC CORRESPONDENCE

The following is public correspondence received by the City Clerk’s Office after the posting of the original agenda. Individual contact information has been redacted for privacy. This may not be a comprehensive collection of the public correspondence, but staff makes its best effort to include all correspondence received to date.

To send correspondence to the City Council, on matters listed on the agenda please email [email protected]
5 Agenda Item # i.

From: p foreman
To: Public Comment
Subject: PUBLIC COMMENT AGENDA ITEM #9-MARCH 28, 2023
Date: Thursday, March 16, 2023 4:31:24 PM
Hello,
I am a 30-year resident of Los Altos and an active community member. I would like to respectfully request that the gas leaf-blower ordinance be enforced vigorously in our area. Gas blowers are more the norm than the exception and without consequences for the users they will continue to proliferate. Enforcing the ordinance is something that not only will improve everyone's quality of life (noise/smell), but can have a huge impact on our health and that of the climate.

Thank you for considering my opinion.

Regards,
Pam Foreman
6 Agenda Item # i.

PUBLIC CORRESPONDENCE

To send correspondence to the City Council, on matters listed on the agenda please email [email protected]
7 Agenda Item # i.

Pierre Bedard
721 Casita Way
Los Altos, CA 94022
30 November 2020
To: North County Library Authority (NCLA)
cc: City of Los Altos and Town of Los Altos Hills Library Commission Lynette Lee Eng, Vice Chair, JPA Board
Jon Maginot, Los Altos Assistant City Manager
Jaime Chew, Los Altos City Staff Liaison
Marcie Scott, NCLA Liaison
Re: Comments on North County Library Authority Joint Exercise of Powers Agreement (JPA), signed 1 August 1985
Commissioners and other interested parties,
I am writing as a Los Altos resident and not as a member of the Library Commission and these comments are my personal opinion. While an attorney may be interested in what I have to say, it should not and cannot replace a practicing attorney's review and learned analysis of the JPA.

I’ve attended most of the NCLA and Library Redevelopment meetings of the past two years. I have an MBA and JD from Santa Clara University, forty years’ experience in negotiations and management, and a knowledge of how the County and the City operate.

I have incorporated the full text of the JPA as an attachment to this letter for reference. I’ve also included the proposed Amendment to the JPA which was presented to the Los Altos City Council in January 2020, but not adopted.

First, I would be remiss not to thank the NCLA, especially the outgoing members, for their service. It has been a challenging time. My comments follow.

Comments on the JPA (organized by Page # / Section # / Section Title)

Page 2 ends

library. The “augmentation of public library services for the benefit of the inhabitants” is the Agency’s primary purpose and I think we need to focus on that more, especially now.

Libraries serve a community function - we are more than a building. As a resident, I don’t want to lose sight of that. We should not shy from helping the inhabitants. But we should also not shy from helping the economy, especially the local one. We need to think of initiatives which bring 8 Agenda Item # i.

Page 2 ends

together the community for that purpose. There’s a fear of spending money. I have a bigger fear - that we sit still without purpose and taking the initiative. We need to be willing to invest where it makes sense.

Page 3 ends

benefit of the inhabitants. I believe that we will require money from the NCLA to bring our libraries back into post-Covid shape. The NCLA needs to be flexible in how it wields its many powers.

The powers specified in this Agreement are not limited to building a new library. For instance, a Woodland remodel, even if only internal, should not be out of the question.

Page 5 ends

Can we just change any of the rules? I would argue yes - the intent of the Agreement signed in 1985, gives the Commission plenty of room to maneuver – but the actions are general, and the details are driven elsewhere.

Where does the NCLA leave off and other organizations step in?

Page 7 ends

be reallocated. I can see why Los Altos doesn't want to provide the service, especially with how the City Manager may consider it to be a large commitment of a permanent employee – he/she would rather see it contracted out.

Comments on Amendment to Agreement on Section 12
My personal opinion is that the presented amendment was overkill, in fact the Amendment introduces language and concepts which needed no introduction. Money and funds are material, I just feel that something might have been done via letter, or frankly, any other mechanism other than spending the amount of time and money necessary to draft and present an ordinance to two city councils.

Reading it, I get the sense the same result might have been accomplished with less administrative effort, but hindsight is often foresight. The Amendment, first presented in January 2020, remains unsigned by Los Altos.

Page 8 ends

If I can’t grasp it, others trying to make sense of the situation are likely in the same quandary.

There seem to be at least three accounts. I would submit that there is a benefit to one account. 9 Agenda Item # i.

Page 3 ends

Attorney and Auditor Issue
Two more comments on items discussed in the last NCLA meeting.

NCLA Attorney. Make the break with the old law firm. I don’t see any other rational option.

NCLA Audit. Any auditor hired must be independent. I disagree with the concept of hiring someone to try to figure out "interest owed." At this point, I think that may be too granular of an ask, but I have not seen any data or documents. Forensics can be expensive. We need to err on the side of agreement so we can move forward.

Thank you for your attention.

Sincerely,
Pierre Bedard
Writing as a resident
10 Agenda Item # i.

Item 3a
11 Agenda Item # i.

NOW, THEREFORE, in consideration of the mutual terms, covenants and conditions herein contained, said parties, acting by and through their respective governing bodies, do hereby agree as follows:

Section 1. Definition of Terms.
"ACT" means the provisions of Chapter 5 of Division 7 of Title 1 of the Government Code (commencing with Section 6500) pertaining to joint powers agreements.
"AGENCY" means the North County Library Authority.
"COMMISSION" means the governing board of the North County Library Authority.
"MEMBER ENTITY" means any city party to this agreement.

Section 2. Creation of Agency. There is hereby created a public agency to be known as the "North County Library Authority". The Agency is formed by this Agreement pursuant to the provisions of Article 1, Chapter 5, Division 7, Title 1 of the Government Code of the State of California relating to the joint exercise of powers common to public :1.
agencies. For the purposes of this Agreement, the Agency is a public r
agency separate from the parties hereto and shall be the agency to administer or execute this Agreement.
--~---- Section 3. Purpose. The purpose of this Agreement is to create an agency which will plan, support, acquire, maintain and operate programs and facilities for the extension of public library services 1 for tne benefit of the inhabitants within the collective boundaries \
\ the Member Entities.
"--------------se'C-tTon'"4-:--- Term and Effect. This Agreement shall become effective when all eligible Member Entities have approved and authorized its execution by their respective governing bodies and shall 24-002 -2- Counterpart Original
12 Agenda Item # i.
contin~e in full force and effect until such time as the parties agree in writing to terminate the same.

Section 5. Powers. The Agency shall have the power and
authority to plan, support, acquire, construct, maintain and operate programs and facilities for the augmentation of public library services for the benefit of the inhabitants of the Member Entities.

The Agency is hereby authorized, in its own name, to do all acts necessary to exercise said power for said purposes, including but not limited to any or all of the following: to make and enter into contracts: apply for and accept grants, advances, and contributions: to employ agents, consultants and employees: to acquire, construct, manage, maintain and operate any buildings, works or improvements: to acquire, hold or dispose of property (real and personal), including but not limited to books, tapes, records, furniture, furnishings and equipment: to sue and be sued in its own name; to conduct elections: to incur debts, liabilities, or obligations: to levy special taxes and/or service charges including but not limited to the power to levy charges and/or to seek approval for the levy of a special tax pursuant to the provisions of the Mello-Roos Community Facilities Act of 1982: to issue revenue bonds, notes, warrants, and other evidences of indebtedness to finance the costs and incidental expenses of the projects of the Agency: to exercise all powers conferred by the Act: and to exercise all other powers common to the Member Entities not herein specifical~y mentioned which may be necessary to carry out the purpose of this Agreement.

No debt, liability or obligation of the Agency shall constitute a debt, liability or obligation of any Member Entity.
24-002 -3- Counterpart Original 13
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Item 4
January 13, 2020
TO: North County Library Authority (NCLA) Commission
FROM: Liaison Marcie Scott
DATE: January 13, 2020
SUBJECT: Consideration of Amendment to JPA Agreement for General Administrative Support
At the November 26, 2019 Board meeting Board President Courtenay Corrigan and Board Secretary Jan Pepper discussed their prior meeting with the City Managers of the two Member Entities to discuss staff support for NCLA. The Board concurred with the recommendation resulting from said meeting and requested JPA amendment language be placed on agenda at the next meeting.

Authority Attorney Chris Diaz prepared the proposed JPA Agreement language for your review.

If the language is acceptable to the NCLA Board, the next step is to propose this language to the Town Council of Los Altos Hills for adoption, and the City Council of Los Altos for adoption.

Upon approval from both Member Entities, the JPA Amendment will become final.

Attachments:
a. JPA Amendment
22 Agenda Item # i.
38093.00001\32616276.1 1

FIRST AMENDMENT TO THE JOINT POWERS AGREEMENT OF

NORTH COUNTY LIBRARY AUTHORITY
This First Amendment to the Joint Powers Agreement (“First Amendment”) is made and entered into on the ___day of _____, 2020, by and between the City of Los Altos, a municipal corporation and the Town of Los Altos, a municipal corporation, both situated in the County of Santa Clara, State of California (collectively the “Parties”).

RECITALS
WHEREAS, on August 1, 1985, the City of Los Altos and the Town of Los Altos Hills, both located in Santa Clara County, entered into a Joint Powers Agreement (the “JPA”) to form the North County Library Authority (the “Agency”); and
WHEREAS, pursuant to Government Code sections 6500 et seq., the parties to the JPA desire to amend the JPA to provide clarifying language changes with regard to the use of Agency funds.

MUTUAL UNDERSTANDINGS
NOW, THEREFORE, for and in consideration of the mutual covenants and conditions hereinafter stated, the Parties hereto agree as follows:

1. Section 12. “Bonding Persons Having Access to Property” is hereby amended as follows:
“Section 12. Bonding Persons Having Access to Property. Officers or person or persons who have charge of, handle or have access to any money of the Agency, shall be required to file an official bond with the Agency in such amount as may be established by the Commission. Should an existing bond of any said officer or officers or person or persons be extended to cover the obligation provided herein, said bond shall be the official bod of said officers or officer or person or persons required to be posted herein. The premium of any such bond or bonds shall be an appropriate expense of the Agency. Any payment to the treasurer or auditor-controller required in the operation of the Agency shall be an appropriate charge against the Agency.

The Administrative Officer shall have the responsibility of any and all property of Agency and shall indicate approval of all claims and demands for the disbursement of Agency funds prior to submittal of said claims and demands to the Commission for approval.

The City of Los Altos shall provide staff and basic services at no cost to the Agency. All costs and expenses of an outside nature such as auditing, legal, consultants or the like, shall be apportioned equally among the Member Entities.
23 Agenda Item # i.
38093.00001\32616276.1 2
If Agency chooses to hire a consultant or consultants solely for administrative support staff to serve the Agency, those costs shall be paid for with the Agency’s Operating Fund funded from a special tax or any other lawful revenue sources. Neither Member Entity shall be obligated to pay for such support staff out of its General Fund.

Section 5: This amendment is to become effective upon execution by all of the parties that are currently signatories to the JPA.

Section 6: All other provisions and terms of the JPA are to remain unchanged.

Section 7: This Amendment may be executed in counterparts.

IN WITNESS WHEREOF, the Parties hereto have caused this First Amendment to be executed and attested by their officers thereunto duly authorized as of the date first above written. [SIGNATURES ON FOLLOWING PAGES]
24 Agenda Item # i.
38093.00001\32616276.1 3
ATTEST:

City Clerk
City of Los Altos
By:

Dated:

City of Los Altos
By
Mayor
ATTEST:

Town Clerk
Town of Los Altos Hills
By:

Dated:

Town of Los Altos Hills
By
Mayor
25 Agenda Item # i.

TO: North County Library Authority (NCLA), City of Los Altos / Town of Los Altos Hills City Library Commission, MaryJo Price, Rose Baiza FROM: Library Commission Services Subcommittee
SUBJECT: NCLA Funds for County Strategic Initiatives / Request for revised legal opinion
Earlier this year, after much study, deliberation, and community input, the Santa Clara County Library announced its five-year Strategic Plan (2023-2028).

This plan is intended to provide guidance, clarity, and focus on how its libraries should invest resources on the identified wants, preferences, and needs of its current users as well as create opportunities to expand its user base.

On January 30, 2023, the NCLA considered four options about funds collected through the parcel tax outlined in Measure L, including:
• Stop collecting the parcel tax
• Use the excess funds to extend open hours for both libraries • Continue to collect the parcel tax until 2029-2030
• Use funds to restore square footage and services to the Main Library The publication of the Strategic Plan provides us with several important options for consideration. We discuss these below. The October 3, 2022, opinion, titled Consideration of Use of NCLA Funds Relating to Los Altos Library, was focused on the proposed expenditure as presented to the Commission on July 18, 2022. In a nutshell, the NCLA used as a justification that the public at large lost out because of the needs of the Friends of the Los Altos Library operation inside the Main Library.

We respectfully request that the NCLA seek a revised opinion to determine whether the funds could be spent as outlined below which is more in line with the 26 Agenda Item # i.
2 “augmentation of the public library services for the benefit of the inhabitants” to specifically address Santa Clara County’s strategic objectives of:
• Create enchanting and interactive children's spaces to instill a joy of learning
• Use innovative service models to connect with community members • Spark discovery with new technology
• Design and implement flexible public spaces that encourage library visits and elevate patron experiences

DISCUSSION OF STRATEGIC OBJECTIVES
Create enchanting and interactive children's spaces to
instill a joy of learning
Public safety is paramount and effective learning can only occur in safe environments. While our librarians are ever vigilant, and the current layout of the library is not overtly dangerous, the current layout is not amenable to safety.

In separate incidents, 6-year-old boys were sexually assaulted in the bathrooms of a public library in Riverside and San Francisco. Visibility is key to protecting our children, youth, and other vulnerable patrons.

We need to revise our existing lobby and children’s area to maximize visibility; minimize or eliminate spaces where children and youth cannot be seen; and establish policies and procedures for access to and use of the space.

Libraries throughout the United States have come up with innovative solutions. A library in New York built a distinct children’s area with a children’sonly bathroom. The Avon Free Public Library has a family restroom, with a baby changing area, a separate stall, and a little kids' toilet. Bay Village Branch of Cuyahoga County Public Library has a Children’s Space with doors to reduce noise, and a family bathroom attached to the Children’s Space.

Supporting children’s literacy and self-led learning is paramount. Effective use of library space has never been more critical.

Other libraries have created enchanting areas, especially for early readers:
27 Agenda Item # i.
3 Creative Reading Spaces Children’s Garden
Aquarium Dynamic Early Learning Spaces
In contrast, children entering the children’s section
of the Los Altos Library walk through double doors
that are propped open, allowing sound to travel
through the library. The space lacks a playful
design, bold colors, or an interactive landscape that
inspires creativity.

The growth in our teen population also provides us with the need to provide adequate space for studying and tutoring. Other libraries have provided space for these purposes:
28 Agenda Item # i.
4 Library tutor rooms Library group study rooms
In contrast, the Los Altos Library provides one large room for teen study.

Tutors often tutor students in the open leading to a lack of privacy and noise.

Measure L was designed in part to supplement the ability of the Santa Clara County Library system to purchase books and materials tailored to our community’s specific interests and for any other expenditure necessary to uphold the level of service. The population of Los Altos and Los Altos Hills has increased by over 2600 people from 2010 to 2020 with a corresponding increase in the number of children1
. We would recommend that the increase in population,
especially that of children, means that we are no longer providing the same level of service to children that we did in 2010.

Use innovative service models to connect community
members with the library
We are a country of immigrants.

Over 33.52% of residents speak a language other than English. The nonEnglish languages spoken by the largest group are Asian and Pacific Island languages, which are spoken by 26.42% of the population.

Many libraries have established collections and programs to serve the needs of library users whose native language is not English. For example, the Cupertino Library has a non-English language collection and hosted an Exhibit on the History of Chinese American Women. The Gilroy Library has the largest Spanish Language collection in the Santa Clara County Library.

We recommend that the library provide an effective, balanced, and substantial collection for our residents. This would include purchasing materials in the languages, dialects of the groups served, and acquiring materials in a variety of formats, which may include print, audio, audio-visual, and computer software as appropriate. We also propose direct social and cultural community activities 1 https://www.census.gov/quickfacts/losaltoscitycalifornia 29 Agenda Item # i.
5 toward the Asian and Pacific Island communities. Programs such as concerts of ethnic music, exhibitions, and demonstrations of traditional arts and crafts may be considered appropriate examples. Finally, library staff working with patrons who have limited English abilities should be multilingual to provide effective service.

Spark discovery with new technology
Given our location in history, time, and space, it makes sense for us to fund new technologies, new services, new ways to use old services, old ways to use services we never knew existed for the benefit of the community at large.

Funds should be brought to bear on this initiative as needed, creating agile workspaces for discovery, using the same in innovation.

We need to think bigger and bring in the entire community, especially businesses and local institutions. Holding an important role in our community’s health, it’s imperative that we shore up the intellectual capital available to us to meet our mission. Monies are only part of the solution.

Design and implement flexible public spaces that
encourage library visits and elevate patron
experiences.

In the last year, our two libraries have been at the forefront of the creation of flexible public spaces. This needs to continue.

By example, the Library Commission recently voted to recommend a plan for the enhancement of Woodland Library. This proposal serves the needs of the inhabitants, providing important study and gathering places for our children. This recommendation is in line with other recommendations by the Commission. Its input needs to be considered.

We also launched a self-service program which allows vetted patrons to use Woodland Library without direct supervision. This program is innovative and was community supported. Services such as these, as they emerged should not be limited by an extremely narrow interpretation of the JPA.

Conclusion
Measure L specifies that funds be used for “augmentation of the public library services for the benefit of the inhabitants.” The interests of our community have evolved since the adoption of Measure L by the electorate. 30 Agenda Item # i.
6 Please re-evaluate the current legal opinion to be more inclusive of the services needed by your constituents, recognizing the true purpose of the NCLA Joint Powers Agreement.

Thank you,
Pierre Bedard, Julie Crane, Christine Fawcett
Library Commission Service Subcommittee
31 Agenda Item # i.

Proclamation
Of the Mayor
Of the City of Los Altos, California

WHEREAS, During Women’s History Month, we celebrate the countless women who have fought tirelessly and courageously for equality, justice, and opportunity in our Nation; and
WHEREAS, Women of every race, class, and ethnic background have made historic contributions to the growth and strength of our Nation in countless recorded and unrecorded ways; and
WHEREAS, We acknowledge that we all benefit from the leadership and contributions of women in education, medicine, government, law, business, military service, and every other field; and
WHEREAS, in Los Altos, we have a long history of female leaders in different roles, including Mayors, Council Members, School Board Presidents and Members, Chamber of Commerce Presidents and many more; and WHEREAS, Despite significant progress, women and girls continue to face systemic barriers to full and equal participation in our economy and society; and
WHEREAS, We reaffirm our commitment to advancing rights and opportunities for women and girls in the United States and around the world; NOW THEREFORE, I, Sally Meadows, Mayor of the City of Los Altos, and on behalf of the Los Altos City Council, do hereby recognize the month of March 2023 to be Women’s History Month and we honor women’s contributions in Los Altos and American history.

MARCH 2023 WOMEN’S HISTORY MONTH
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the seal of the City of Los Altos this 28th day of March 2023. ______________________________
Sally Meadows, MAYOR
32 Agenda Item # A.
33 Agenda Item # A.

CITY COUNCIL MEETING

MINUTES
7:00 PM - Tuesday, February 28, 2023
via Videoconference and In Person

CALL MEETING TO ORDER
At 7:00 p.m. Mayor Meadows called the meeting to order.

ESTABLISH QUORUM
PRESENT: Councilmembers Fligor, Lee Eng (via Zoom), Dailey, Vice Mayor Weinberg, Mayor Meadows
ABSENT: None

PLEDGE ALLEGIANCE TO THE FLAG
Diya Venuprakash, Sarah Du, Elodie Guy, Stella Berger-Morris, Adithi Kaza, Aliyah Lazar with Troop 60078 led the pledge.

REPORT ON CLOSED SESSION
There was no Closed Session.

CHANGES TO THE ORDER OF THE AGENDA
There were no changes.

PUBLIC COMMENTS ON ITEMS NOT ON THE AGENDA
The following members of the public spoke: Bebe, and Kim Mosley.

SPECIAL ITEM
i. 2023 March as Youth Arts Month Proclamation
Mayor Meadows presented the Youth Arts Month Proclamation and Sofia Fojas, Arts Coordinator with the Santa Clara County Office of Education, spoke to the item. ii. Los Altos 2022 STEM Winners
Forrest Williams with the Santa Clara Valley Science and Engineering Fair Association presented the item to Council and Mayor Meadows recognized the Los Altos 2022 STEM Winners.

CONSENT CALENDAR

1. Minutes: Approve Minutes of the City Council Regular Meeting of February 14, 2023. (A.

Rodriguez)
34 Agenda Item # 1.
02/28/23 CITY COUNCIL MEETING MINUTES Page 2 of 5

2. Commission Appointment Process: Amend the "Membership of City Commissions" section from the Los Altos Commission Handbook (A. Carnesecca)

3. Rescind the Los Altos Open Government Policy and terminate the City Council Legislative Subcommittee and the Council Open Government Subcommittee: Adopt Resolution 2023- XX repealing Resolution No. 2019-30 regarding Open Government Policy in its entirety and terminate the City Council Legislative Subcommittee (A. Rodriguez) Consent item 2 was pulled by Councilmember Lee Eng and Consent item 3 was pulled by Roberta Phillips, a member of the public.

A motion by Councilmember Fligor, seconded by Vice Mayor Weinberg, to approve item 1 from the Consent calendar was approved with the following roll call vote:

AYES: Councilmembers Fligor, Lee Eng, Dailey, Vice Mayor Weinberg, Mayor Meadows NOES: None
ABSENT: None
ABSTAIN: None

2. Commission Appointment Process: Amend the "Membership of City Commissions" section from the Los Altos Commission Handbook (A. Carnesecca)
Councilmember Lee Eng addressed the Council.

A motion by Vice Mayor Weinberg was seconded by Councilmember Fligor, with a friendly amendment to remove the word ‘only’ from the proposed language on page three of the staff report, which was accepted by Vice Mayor Weinberg, to amend the recruitment section of the Commission Handbook.

Councilmember Lee Eng made a substitute motion to continue this agenda item until meetings are held with the Commission Chairs, but the substitute motion failed as it received no second.

Changes to recruitment section of the Commission Handbook as discussed were approved with the following roll call vote:

AYES: Councilmembers Fligor, Lee Eng, Dailey, Vice Mayor Weinberg, Mayor Meadows NOES: None
ABSENT: None
ABSTAIN: None

3. Rescind the Los Altos Open Government Policy and terminate the City Council Legislative Subcommittee and the Council Open Government Subcommittee: Adopt Resolution 2023- XX repealing Resolution No. 2019-30 regarding Open Government Policy in its entirety and terminate the City Council Legislative Subcommittee (A. Rodriguez) Mayor Meadows provided some clarity to Council on this item. Councilmember Lee Eng commented.

Councilmember Fligor, Lee Eng, Vice Mayor Weinberg asked clarifying questions and City Attorney and City Manager Engeland responded.
35 Agenda Item # 1.
02/28/23 CITY COUNCIL MEETING MINUTES Page 3 of 5
A motion by Councilmember Fligor, seconded by Vice Mayor Weinberg, to adopt a resolution amending resolution 2019-30 by terminating the City Council's Legislative Subcommittee and the Open Government Subcommittee with the amendments also submitted by staff and amendments to the title of the resolution was approved with the following roll call vote:

AYES: Councilmembers Fligor, Lee Eng, Dailey, Vice Mayor Weinberg, Mayor Meadows NOES: None
ABSENT: None
ABSTAIN: None

PUBLIC HEARINGS

4. Permanent Fenced-In Dog Park at Hillview: Approve the use of $75,000 from Park-In-Lieu Funds to Contract Design Consultant Services for the Permanent Fenced-In Dog Park at Hillview (M. Hernandez)
Park and Recreation Director Manny Hernandez presented the item to Council.

The Council asked clarifying questions and Director Hernandez responded.

The following members of the public spoke: David Smith, Jeannine Valadez, Freddie Park Wheeler, Roberta Philips, and Joe Beninato.

Councilmember Lee Eng commented, and City Manager Engeland responded. The Council engaged in discussion.

A motion by Councilmember Lee Eng, seconded by Councilmember Fligor, to approve the Park-In-Lieu funds for consultant services for the design process of the permanent dog park at Hillview Park and authorize the City Manager to execute an agreement with Verde Design for consultant services in the amount not to exceed $75,000 for the deign process of the permanent dog park at Hillview Park was adopted by Council with the following roll call vote:

AYES: Councilmembers Fligor, Lee Eng, Dailey, Vice Mayor Weinberg, Mayor Meadows NOES: None
ABSENT: None
ABSTAIN: None

5. Housing Element Update Ordinance: Approve an ordinance of the City Council of the City of Los Altos amending chapters 2.08, 12.44, 13.04, 14.76, and 14.78 of the Los Altos municipal code to implement certain provisions of program 3.h of the sixth cycle Housing Element Update, this ordinance is exempt from environmental review pursuant to section 15061(b)(3) of the state guidelines implementing the California environmental quality act of 1970. (N. Zornes) Development Services Director Nick Zornes presented to Council.

Vice Mayor Weinberg, Councilmembers Dailey, Lee Eng, and Fligor asked clarifying questions to which Director Zornes responded.

The following members of the public spoke: Albert Luster, Mauricio Chavez, Stacy Banerjee, Dwight Wrench, and Teresa Morris.
36 Agenda Item # 1.
02/28/23 CITY COUNCIL MEETING MINUTES Page 4 of 5
At 9:12 pm, Mayor Meadows called for a recess and reconvened the meeting at 9:25 pm.

The Council engaged in discussion and City Attorney Houston, Development Services Director Zornes, and City Manager Engeland commented.

A motion by Councilmember Weinberg, seconded by Councilmember Dailey, to adopt an ordinance of the City Council of the City of Los Altos amending chapters 2.08, 12.44, 13.04, 14.76, and 14.78 of the Los Altos municipal code to implement certain provisions of program 3.H of the Sixth Cycle Housing Element Update with the amendments to chapter 14.78 that were discussed and waive further reading and return for adoption at the next Regular Meeting was approved by the following roll call vote:

AYES: Councilmembers Fligor, Lee Eng, Dailey, Vice Mayor Weinberg, Mayor Meadows NOES: None
ABSENT: None
ABSTAIN: None

DISCUSSION ITEMS

6. Proposition 218 process/Sewer Rate Study Report: Approve the Sewer Rate Study Report and direct staff to proceed with the Proposition 218 Notice Process (A. Fairman) Environmental Services and Utilities Department Aida Fairman presented to Council with the help of Jordan Taylor and Allan Highstreet with NBS.

Councilmember Lee Eng asked clarifying question.

The following member of the public spoke: Roberta Phillips A motion by Councilmember Fligor, seconded by Vice Mayor Weinberg, to approve the Sewer Rate Study Report and direct staff to proceed with the Proposition 218 Notice Process was approved with the following roll call vote:

AYES: Councilmembers Fligor, Lee Eng, Dailey, Vice Mayor Weinberg, Mayor Meadows NOES: None
ABSENT: None
ABSTAIN: None
Councilmember Lee Eng requested non rate revenue information and City Manager Engeland agreed to provide it to Council.

At 10:58 pm, Mayor Meadows called for a recess and reconvened the meeting at 11:08 pm.

7. Automated License Plate Reader Cameras: Approve a one-year pilot program of Automated License Plate Readers for up to 25 cameras and up to $75,000 (A. Averiett) City Manager Engeland and Police Chief Angela Averiett presented the item to Council.

The Council asked clarifying questions and Chief Averiett and Hector Soliman-Valadez from Flock responded.
37 Agenda Item # 1.
02/28/23 CITY COUNCIL MEETING MINUTES Page 5 of 5
The following members of the public spoke: Eugene Hyman, Kim Mosley, Jeannine Valadez, Tania Maluf, Curtis Cole, Myra Orta, Brian Jones, Renee Rashid, Roberta Philips, Cindy Sidaris, Scott Spielman, and Maureen Griffin.

Council engaged in discussion and requested additional information. Council then provided direction to staff to have this item come back to Council.

INFORMATIONAL ITEMS ONLY

8. Tentative Council Calendar

9. Neighborhood Safety and Infrastructure Committee

COUNCIL/STAFF REPORTS AND DIRECTIONS ON FUTURE AGENDA ITEMS City Manager Engeland reported that the COVID Emergency Measures have ended as of March 1.

ADJOURNMENT
Mayor Meadows adjourned the meeting at 1:21 am.
_____________________________________
Sally Meadows, MAYOR
ATTEST:
_____________________________________
Angel Rodriguez, INTERIM CITY CLERK
38 Agenda Item # 1.

CITY COUNCIL MEETING

MINUTES
7:00 PM - Tuesday, February 21, 2023
via Videoconference and In Person

CALL MEETING TO ORDER
At 5:06 p.m. Mayor Meadows called the meeting to order.

ESTABLISH QUORUM
PRESENT: Councilmembers Fligor, Lee Eng (via Zoom), Dailey, Vice Mayor Weinberg, Mayor Meadows
ABSENT: None

PUBLIC COMMENTS ON AGENDA ITEMS
The following members of the public spoke: Jeanine Valadez, Linda Ziff, Dashiell Leeds, and Roberta Phillips, Joe Beninato, and Stacy Banerjee.

DISCUSSION ITEM(S)

1. (15 min) Ice-Breaker (I. Silipin)
Human Resources Director Irene Silipin facilitated the ice-breaker with the Council.

Due to a power outage, the meeting was temporarily halted and reconvened as soon as power returned.

Council participated in the ice-breaker activity.

2. (1 hour) City Council Strategic Goals: Review the City's 5-Year Strategic Goals and provide modifications as needed (J. Maginot)
Assistant City Manager Jon Maginot presented the item to Council.

The Council engaged in discussions and provided direction on their desired Council goals. The new goals will be brought back to Council for adoption at an upcoming Council meeting.

3. (30 mins) Review of City Council Ad Hoc and Standing Subcommittees (G. Engeland) City Manager Engeland presented the item to Council.

The Council engaged in discussions. Council gave direction to retain the Council subcommittees with the Los Altos School District, the Mountain View-Los Altos Union High School District, the Fremont Unified/ Cupertino Union School District, and the Youth Commission Interview. Council gave direction to dissolve the Open Government and the Legislative Subcommittees.

4. (10 min) Break
39 Agenda Item # 2.
02/21/23 CITY COUNCIL MEETING MINUTES Page 2 of 2

5. (1.5 hours) Los Altos Commission Review (G. Engeland) City Manager Engeland presented the item to Council.

Council engaged in discussion, provided direction, and requested further information. The item will come back to a later Council meeting.

6. (30 min) Future Council Agenda Items Clean-up and Review (A. Rodriguez) Interim City Clerk Angel Rodriguez presented the item to Council. Council made edits accordingly.

7. (10 min) Wrap up
Mayor Meadows thanked her colleagues.

ADJOURNMENT
Mayor Meadows adjourned the meeting at 8:50 pm.
_____________________________________
Sally Meadows, MAYOR
ATTEST:
_____________________________________
Angel Rodriguez, INTERIM CITY CLERK
40 Agenda Item # 2.

Reviewed By:

City Manager City Attorney
JM
Finance Director
JH JD

AGENDA REPORT SUMMARY
Meeting Date: March 14, 2023
Subject Receive and Accept: Treasurer’s Report – Month Ended December 31, 2022 (J. Du)
Prepared by: June Du, Finance Director
Approved by: Jon Maginot, Assistant City Manager
Attachment(s):

1. Change in Total Fund Balances by Fund

2. Cash Balances by Fund
Initiated by:

Staff.

Fiscal Impact:

None
Environmental Review:

Not applicable
Policy Question(s) for Council Consideration:
 None
Summary:

As indicated in the City’s response to the 2022 Civil Grand Jury Report, the City is providing this report as desired by the Grand Jury. The following attachment provides various financial transaction data for the City of Los Altos from July 1 to November 30 and for the month of December 31, 2022.

Staff Recommendation:

Receive and accept the Treasurer’s Report through December 31, 2022. 41 Agenda Item # 3.

Change in Total Fund Balances by Fund
FUND
Fund Balances as of
07/01/2022 Revenue Expenditures
Capital
Expenditures Transfer In/(Out)
Estimated Fund
Balances as of
11/30/2022 Revenue Expenditures
Capital
Expenditures
Transfer
In/(Out)
Estimated Ending
Balance 12/31/2022

RESERVE FUND
PERS & OPEB Reserve 292,614 - - 258,700 551,314 - - - - 551,314 Technology Reserve 1,278,768 1,278,768 1,278,768
Fiscal Policy Reserve 8,757,349 8,757,349 8,757,349
Vets Memorial 8,615 8,615 8,615
General Fund 9,645,194 13,192,976 (14,469,625) - (1,870,068) 6,498,476 6,306,716 (4,467,577) - 8,337,615 Total General Fund: 19,982,540 13,192,976 (14,469,625) - (1,611,368) 17,094,522 6,306,716 (4,467,577) - - 18,933,660

ENTERPRISE FUNDS
Sewer Fund 25,511,666 53,714 (1,866,039) (162,768) (201,000) 23,335,573 (152,501) (20,918) 23,162,154 Solid Waste Fund 5,360,985 306,616 (1,174,599) (467,611) (57,700) 3,967,691 (182,605) 3,785,086 Storm Drain Fund - - - - - - - - - - -
Total Enterprise Funds: 30,872,650 360,330 (3,040,638) (630,380) (258,700) 27,303,263 - (152,501) (203,523) - 26,947,239

CAPITAL IMPROVEMENT FUNDS
Grant Reimbusement Fund 290,145 - - - 290,145 - - - 290,145 Capital Projects Fund 11,850,959 - (1,406,484) 103,068 10,547,544 - - (83,412) - 10,464,132 Equipment Replacement Fund 683,947 - - (75,856) 300,000 908,092 - - (85,479) 822,612 Total Capital Improvement Funds: 12,825,052 - - (1,482,339) 403,068 11,745,781 - - (168,891) - 11,576,889 -

INTERNAL SERVICE FUNDS -
Dental/Vision Fund 5,253 (116,813) - 20,000 (91,559) (91,559) Unemployment Fund 96,698 - - - - 96,698 96,698
Workers Compensation Fund 1,256,027 - (344,707) - 857,000 1,768,320 (238,887) 1,529,433 - - -
Total Internal Service Funds: 1,357,978 - (461,520) - 877,000 1,773,459 - (238,887) - - 1,534,572 -

SPECIAL REVENUE FUNDS -
Road Maintenance (SB1) 347,841 231,175 - - - 579,016 54,978 633,994 CDBG Fund - - - - - - -
Grants Fund-ARP Act - - - - - - -
Downtown Parking Fund 931,916 6,150 - - (40,000) 898,066 310 898,376 Estate Donation Fund 18,191 - - - - 18,191 18,191
Gas Tax Fund 1,899,176 289,233 - - - 2,188,410 68,273 2,256,683 Prop 1B Road Maintenance 130 - - - - 130 130
Measure B 436,933 - - - - 436,933 436,933
In Lieu Park Fund 8,671,789 - - - (793,965) 7,877,824 7,877,824 Supplemental Law Enforcement Fund 207,292 81,938 - - (100,000) 189,230 8,333 197,563 TDA Fund 88,358 - - - - 88,358 88,358
Traffic Impact Fee Fund (218,523) - - - - (218,523) (218,523) Vehicle Registration Fund 1,192,389 - - - - 1,192,389 1,192,389 PEG Fees 251,951 23,864 - - (70,000) 205,815 205,815
Public Art Fund 498,290 (54) - - 498,237 498,237
Storm Drain Deposits 56,086 - - - - 56,086 56,086
AB-1379 CASP Fee - 3,758 3,758 2,477 6,235
Vehicle Impound Fund (7,309) 8,465 - - 1,156 627 1,783
Total Special Revenue Funds: 14,374,511 644,582 (54) - (1,003,965) 14,015,075 134,997 - - - 14,150,072

DEBT SERVICE FUND
General Obligation Bond 370,388 - (15,938) - 171,875 526,326 526,326 Community Center Lease 0 - - - 622,090 622,090 (104,114) 517,977 Total Debt Service Fund: 370,389 - (15,938) - 793,965 1,148,416 - (104,114) - - 1,044,302

AGENCY FUND
Blue Oaks Line Sewer 84,676 - (32,272) - - 52,404 (1,081) - - 51,322 Total Debt Service Fund: 84,676 - (32,272) - - 52,404 - (1,081) - - 51,322 ALL FUNDS TOTAL 79,867,796 14,197,888 (18,020,046) (2,112,719) (800,000) 73,132,920 6,441,713 (4,964,160) (372,414) - 74,238,058 July-Nov 2022 Activities December 2022 Activities
42 Agenda Item # 3.

Cash Balances By Fund Report
FUND
Cash Balances as of
07/01/2022 Debit Credit
Estimated Cash Balances
as of 11/30/2022 Debit Credit
Estimated Ending
Cash Balance
12/31/2022

RESERVE FUND
PERS & OPEB Reserve 292,614 258,700 551,314 - - 551,314 Technology Reserve 1,278,768 1,278,768 1,278,768
General Fund 14,421,774 20,608,450 (16,898,597) 18,131,627 6,274,917 (4,434,343) 19,972,200 Payroll Liability Fund 769,665 5,259,978 (8,010,315) (1,980,672) 2,064,099 (373,787) (290,360) Total General Fund: 16,762,820 26,127,128 (24,908,912) 17,981,036 8,339,016 (4,808,131) 21,511,921

ENTERPRISE FUNDS
Sewer Fund 11,777,539 629,367 (2,753,628) 9,653,278 103 (172,061) 9,481,320 Solid Waste Fund 5,264,690 575,593 (462,666) 5,377,617 (208,281) 5,169,336 Storm Drain Fund 802 - - 802 - - 802
Total Enterprise Funds: 17,043,031 1,204,960 (3,216,294) 15,031,697 103 (380,343) 14,651,458

CAPITAL IMPROVEMENT FUNDS
Grant Reimbusement Fund 70,828 263,344 - 334,172 - 334,172 Capital Projects Fund 12,049,736 565,262 (1,123,670) 11,491,328 - (850,579) 10,640,749 Equipment Replacement Fund 841,115 300,000 (233,024) 908,092 - (54,521) 853,571 Total Capital Improvement Funds: 12,961,679 1,128,605 (1,356,693) 12,733,591 - (905,100) 11,828,492 -

INTERNAL SERVICE FUNDS -
Dental/Vision Fund 5,253 20,000 (116,813) (91,559) (91,559) Unemployment Fund 96,698 - - 96,698 96,698
Workers Compensation Fund 5,873,884 857,132 (313,610) 6,417,406 303,187 (50,437) 6,670,156 -
Total Internal Service Funds: 5,975,836 877,132 (430,422) 6,422,545 303,187 (50,437) 6,675,295 -

SPECIAL REVENUE FUNDS -
Road Maintenance (SB1) 290,576 309,573 (22,172) 577,977 54,978 632,955 CDBG Fund - - - - -
Grants Fund-ARP Act - - - - -
Downtown Parking Fund 931,357 39,776 (74,416) 896,717 310 897,027 Estate Donation Fund 18,191 607 (637) 18,161 18,161
Gas Tax Fund 1,840,147 432,477 (88,352) 2,184,271 68,273 2,252,544 Prop 1B Road Maintenance - 1,718 (1,662) 56 56
Measure B - 593,455 (157,467) 435,988 435,988
In Lieu Park Fund 8,709,789 321,177 (1,168,926) 7,862,040 7,862,040 Supplemental Law Enforcement Fund 207,292 81,938 (100,000) 189,230 8,333 197,563 TDA Fund - 88,358 (52,724) 35,634 35,634
Traffic Impact Fee Fund - 8,460 (227,399) (218,939) (218,939) Vehicle Registration Fund 1,192,389 39,779 (41,734) 1,190,434 1,190,434 PEG Fees 229,532 72,488 (97,493) 204,527 204,527
Public Art Fund 498,290 54 498,344 498,344
Storm Drain Deposits 56,086 - - 56,086 56,086
AB-1379 CASP Fee - 3,758 3,758 2,477 6,235
Vehicle Impound Fund - 8,465 (7,309) 1,156 627 1,783
Total Special Revenue Funds: 13,973,649 2,002,030 (2,040,238) 13,935,440 134,997 - 14,070,438

DEBT SERVICE FUND
General Obligation Bond 370,388 171,875 (15,938) 526,326 526,326 Community Center Lease 0 622,090 - 622,090 (104,114) 517,977 Total Debt Service Fund: 370,389 793,965 (15,938) 1,148,416 - (104,114) 1,044,302

AGENCY FUND
Blue Oaks Line Sewer 84,676 652 (30,321) 55,007 (2,636) 52,372 Total Debt Service Fund: 84,676 652 (30,321) 55,007 - (2,636) 52,372 ALL OTHER FUNDS TOTAL 67,172,079 32,134,472 (31,998,817) 67,307,734 8,777,303 (6,250,759) 69,834,278 July-Nov 2022 Activities December 2022 Activities
43 Agenda Item # 3.

Reviewed By:

City Manager City Attorney
GE
Finance Director
JH JD

AGENDA REPORT SUMMARY
Meeting Date: March 14, 2023
Subject Quarterly Investment Portfolio Report – Quarter Ended December 31, 2022 Prepared by: June Du, Finance Director
Approved by: Gabriel Engeland, City Manager
Attachment(s):

1. Portfolio Mix Charts

2. Investment Policy Compliance Chart

3. LAIF Balance 12-31-22

4. LAIF Performance Over Time

5. PFM Investment Report Quarter Ended December 31, 2022 Initiated by:

Staff.

Fiscal Impact:

None
Environmental Review:

Not applicable
Policy Question(s) for Council Consideration:
 None
Summary:
 This report presents the status of the City’s investment portfolio through December 31, 2022. The reporting model has been developed in coordination with PFM Asset Management LLC (PFM), the City’s investment portfolio managers.

Staff Recommendation:

Receive the Investment Portfolio Report through December 31, 2022. 44 Agenda Item # 4.

Subject: Quarterly Investment Portfolio Report – Quarter Ended December 31, 2022 February 21, 2023 Page 2
Purpose
These quarterly reports are presented to both the City Council and the Financial Commission to keep both bodies apprised as to the status of the City’s investment holding and demonstrate compliance with the City’s Investment Policy.

Background
A review of the Investment Portfolio Report Quarter Ended December 31, 2022 was presented and discussed by the Financial Commission on February 27, 2023. The Financial Commission reviewed the Quarterly Investment Portfolio Report ending December 31, 2022, and had a brief discussion.

Discussion/Analysis
The summary provided below presents the sum of all City investment holdings. The City’s portfolio par value and market value, including LAIF but excluding operating cash, as of December 31, 2022, was $59,002,231 and $57,005,621 respectively. The City’s operating cash, as of December 31, 2022, was $10,149,644.

As of December 31, 2022, 7.4% of the City’s portfolio was placed in Federal Agency Securities (Fannie Mae, Federal Home Loan Bank, Federal Home Loan Mortgage, and Federal Farm Credit),

13.8% in Asset-Backed Securities, 1.6% in Supra-National Agency Bond, 35.2% in US Treasuries,

23.4% in medium-term Corporate Notes and Commercial Paper, and 3.1% in Certificate of Deposits, with the balance of 15.5% in LAIF. This portfolio mix is illustrated as part of Attachment 1 with LAIF balance and performance as Attachments 3 and 4.

Full compliance with the City’s Investment Policy is monitored closely and on a per-trade basis as illustrated in Attachment 2. In accordance with California Government Code 53646(b)(3), the City of Los Altos has the ability to meet its pool expenditure requirements for the next six months.

As part of these quarterly updates, a status report is prepared by PFM which is included as Attachment 5: Investment Performance Review for the Quarter Ended December 31, 2022. It is important to note that this report highlights the performance of City investments that fall outside its liquid holdings with LAIF. This has been intentionally crafted to isolate the performance of the City’s independently managed investments. The return of the portfolio over ten years is 0.88%, which is highlighted on page 21 of the PFM Investment Performance Review Report (Attachment 5).

Recommendation
Receive the Investment Portfolio Report Quarter Ended December 31, 2022 45 Agenda Item # 4.

Attachment 1
Portfolio Mix Charts
December 2022
Portfolio Mix
Security Type % of Total By Security
LAIF 15.5% 9,143,395Money Market 0.0% -
Corp Notes 23.4% 13,814,000
Asset-Backed Securities 13.8% 8,165,286
Supra-National Agency Bond 1.6% 960,000
Federal Home Loan Banks 7.4% 4,352,549Federal Nat'l Mortgage 0.0% - Negotiable CDs 3.1% 1,800,000
US Treasury 35.2% 20,767,000
Commercial Paper 0.0% -
* Totals 100% 59,002,231.13
100.00%
Portfolio Mix Market
Security Type % of Total Par Value Value
LAIF 15.5% 9,143,395 9,143,395Money Market 0.0% -Corp Notes 23.4% 13,814,000 13,286,431 Asset-Backed Securities 13.8% 8,165,286 7,949,811
Supra-National Agency Bond 1.6% 960,000 906,956
Federal Agencies 7.3% 4,352,549 4,185,198
Negotiable CDs 3.1% 1,800,000 1,790,134
US Treasury 35.2% 20,767,000 19,743,695
100% 59,002,231 57,005,621
100.00%
Corp Notes 13,814,000 13,286,431Asset-Backed Securities 8,165,286 7,949,811Supra-National Agency Bond 960,000 906,956US Treasury/Agencies 25,119,549 23,928,893Negotiable CDs 1,800,000 1,790,134Accrued Interest - 178,477 48,040,702 49,858,835.79
Margin Over (Under) Par (1,818,134)
LAIF

15.5% Money Market

0.0%
Corp Notes

23.4%
Asset-Backed
Securities
Supra-National 13.8%
Agency Bond

1.6%
Federal Agencies

7.3%
Negotiable CDs

3.1%
US Treasury

35.2%
PORTFOLIO MIX ‐ BY CLASS
LAIF

15.5%
Money Market

0.0%
Corp Notes

23.4%
Asset-Backed
Securities

13.8%
Supra-National
Agency Bond

1.6%
Federal Home
Loan Banks

7.4%
Federal Nat'l
Mortgage

0.0%
Negotiable CDs

3.1%
US Treasury

35.2%
PORTFOLIO MIX ‐ BY SECURITY
46 Agenda Item # 4.

Attachment 2
Investment Policy Compliance Chart
December 2022
Earliest City Policy City Policy City Policy % Compliance Term Compliance City Investment % Mix Par Value Term Term Limitation $ Limitation % Limitation CAPACITY Yes/No Yes/NoLAIF 15.5% 9,143,395 07/01/22 No Term 75,000,000 100% 65,856,605 Yes N/A Money Market 0.0% - Overnight 20% 11,800,446 Yes N/A
Corp Notes 23.4% 13,814,000 06/08/23 5 Years 30% 3,886,669 Yes Yes Asset-Backed Securities 13.8% 8,165,286 08/21/23 5 Years 20% 3,635,160 Yes Yes Supra-National Agency Bond 1.6% 960,000 05/24/23 5 Years 20% 10,840,446 Yes Yes Federal Agencies 7.4% 4,352,549 07/01/22 5 Years 100% 54,649,682 Yes Yes Commercial Paper 0.0% - - 270 Days 25% 14,750,558 Yes - Negotiable CDs 3.1% 1,800,000 12/02/22 5 Years 30% 15,900,669 Yes Yes US Treasury 35.2% 20,767,000 09/30/23 5 Years 100% 38,235,231 Yes Yes 100% 59,002,231
47 Agenda Item # 4.
1/10/23, 9:27 AM LAIF Regular Monthly Statement
https://laifms.treasurer.ca.gov/RegularStatement.aspx 1/1 Local Agency Investment Fund
P.O. Box 942809
Sacramento, CA 94209-0001
(916) 653-3001
January 10, 2023
LAIF Home
PMIA Average Monthly
Yields

CITY OF LOS ALTOS

CITY TREASURER

ONE NORTH SAN ANTONIO ROAD
LOS ALTOS, CA 94022
Account Number: 98-43-481
December 2022 Statement
Tran Type Definitions
Account Summary
Total Deposit: 0.00 Beginning Balance: 9,143,395.34
Total Withdrawal: 0.00 Ending Balance: 9,143,395.34
48 Agenda Item # 4.

PMIA Average Monthly Effective Yields
Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
1977 5.770 5.660 5.660 5.650 5.760 5.850 5.930 6.050 6.090 6.090 6.610 6.730 1978 6.920 7.050 7.140 7.270 7.386 7.569 7.652 7.821 7.871 8.110 8.286 8.769 1979 8.777 8.904 8.820 9.082 9.046 9.224 9.202 9.528 9.259 9.814 10.223 10.218 1980 10.980 11.251 11.490 11.480 12.017 11.798 10.206 9.870 9.945 10.056 10.426 10.961 1981 10.987 11.686 11.130 11.475 12.179 11.442 12.346 12.844 12.059 12.397 11.887 11.484 1982 11.683 12.044 11.835 11.773 12.270 11.994 12.235 11.909 11.151 11.111 10.704 10.401 1983 10.251 9.887 9.688 9.868 9.527 9.600 9.879 10.076 10.202 10.182 10.164 10.227 1984 10.312 10.280 10.382 10.594 10.843 11.119 11.355 11.557 11.597 11.681 11.474 11.024 1985 10.579 10.289 10.118 10.025 10.180 9.743 9.656 9.417 9.572 9.482 9.488 9.371 1986 9.252 9.090 8.958 8.621 8.369 8.225 8.141 7.844 7.512 7.586 7.432 7.439 1987 7.365 7.157 7.205 7.044 7.294 7.289 7.464 7.562 7.712 7.825 8.121 8.071 1988 8.078 8.050 7.945 7.940 7.815 7.929 8.089 8.245 8.341 8.397 8.467 8.563 1989 8.698 8.770 8.870 8.992 9.227 9.204 9.056 8.833 8.801 8.771 8.685 8.645 1990 8.571 8.538 8.506 8.497 8.531 8.538 8.517 8.382 8.333 8.321 8.269 8.279 1991 8.164 8.002 7.775 7.666 7.374 7.169 7.098 7.072 6.859 6.719 6.591 6.318 1992 6.122 5.863 5.680 5.692 5.379 5.323 5.235 4.958 4.760 4.730 4.659 4.647 1993 4.678 4.649 4.624 4.605 4.427 4.554 4.438 4.472 4.430 4.380 4.365 4.384 1994 4.359 4.176 4.248 4.333 4.434 4.623 4.823 4.989 5.106 5.243 5.380 5.528 1995 5.612 5.779 5.934 5.960 6.008 5.997 5.972 5.910 5.832 5.784 5.805 5.748 1996 5.698 5.643 5.557 5.538 5.502 5.548 5.587 5.566 5.601 5.601 5.599 5.574 1997 5.583 5.575 5.580 5.612 5.634 5.667 5.679 5.690 5.707 5.705 5.715 5.744 1998 5.742 5.720 5.680 5.672 5.673 5.671 5.652 5.652 5.639 5.557 5.492 5.374 1999 5.265 5.210 5.136 5.119 5.086 5.095 5.178 5.225 5.274 5.391 5.484 5.639 2000 5.760 5.824 5.851 6.014 6.190 6.349 6.443 6.505 6.502 6.517 6.538 6.535 2001 6.372 6.169 5.976 5.760 5.328 4.958 4.635 4.502 4.288 3.785 3.526 3.261 2002 3.068 2.967 2.861 2.845 2.740 2.687 2.714 2.594 2.604 2.487 2.301 2.201 2003 2.103 1.945 1.904 1.858 1.769 1.697 1.653 1.632 1.635 1.596 1.572 1.545 2004 1.528 1.440 1.474 1.445 1.426 1.469 1.604 1.672 1.771 1.890 2.003 2.134 2005 2.264 2.368 2.542 2.724 2.856 2.967 3.083 3.179 3.324 3.458 3.636 3.808 2006 3.955 4.043 4.142 4.305 4.563 4.700 4.849 4.946 5.023 5.098 5.125 5.129 2007 5.156 5.181 5.214 5.222 5.248 5.250 5.255 5.253 5.231 5.137 4.962 4.801 2008 4.620 4.161 3.777 3.400 3.072 2.894 2.787 2.779 2.774 2.709 2.568 2.353 2009 2.046 1.869 1.822 1.607 1.530 1.377 1.035 0.925 0.750 0.646 0.611 0.569 2010 0.558 0.577 0.547 0.588 0.560 0.528 0.531 0.513 0.500 0.480 0.454 0.462 2011 0.538 0.512 0.500 0.588 0.413 0.448 0.381 0.408 0.378 0.385 0.401 0.382 2012 0.385 0.389 0.383 0.367 0.363 0.358 0.363 0.377 0.348 0.340 0.324 0.326 2013 0.300 0.286 0.285 0.264 0.245 0.244 0.267 0.271 0.257 0.266 0.263 0.264 2014 0.244 0.236 0.236 0.233 0.228 0.228 0.244 0.260 0.246 0.261 0.261 0.267 2015 0.262 0.266 0.278 0.283 0.290 0.299 0.320 0.330 0.337 0.357 0.374 0.400 2016 0.446 0.467 0.506 0.525 0.552 0.576 0.588 0.614 0.634 0.654 0.678 0.719 2017 0.751 0.777 0.821 0.884 0.925 0.978 1.051 1.084 1.111 1.143 1.172 1.239 2018 1.350 1.412 1.524 1.661 1.755 1.854 1.944 1.998 2.063 2.144 2.208 2.291 2019 2.355 2.392 2.436 2.445 2.449 2.428 2.379 2.341 2.280 2.190 2.103 2.043 2020 1.967 1.912 1.787 1.648 1.363 1.217 0.920 0.784 0.685 0.620 0.576 0.540 2021 0.458 0.407 0.357 0.339 0.315 0.262 0.221 0.221 0.206 0.203 0.203 0.212 2022 0.234 0.278 0.365 0.523 0.684 0.861 1.090 1.276 1.513 1.772 2.007 2.173 Attachment 4 - LAIF Performance Over Time
49 Agenda Item # 4.

Investment Performance Review
For the Quarter Ended December 31, 2022
Client Management Team PFM Asset Management LLC
Monique Spyke, Managing DirectorWale Kajopaiye, Senior Managing Consultant 213 Market Street
Harrisburg, PA 17101-2141
717-232-2723
1 California Street Ste. 1000
San Francisco, CA 94111-5411
415-393-7270
NOT FDIC INSURED : NO BANK GUARANTEE : MAY LOSE VALUE
For Institutional Investor or Investment Professional Use Only - This material is not for inspection by, distribution to, or quotation to the general public

CITY OF LOS ALTOS
50 Agenda Item # 4.
© PFM Asset Management LLC pfmam.com |
• Market Update• Portfolio Review
51 Agenda Item # 4.
© PFM Asset Management LLC pfmam.com |
Market Update
52 Agenda Item # 4.

PFM Asset Management LLC
For the Quarter Ended March 31, 2022
California Affiliated Risk Management Authorities CLIENT NAME Market Update For the Quarter Ended December 31, 2022
Market Update
© PFM Asset Management LLC | pfmam.com
The Year in Review
Beginning in March, the Fed hiked rates by 425 basis points in 2022 • The 2-year treasury yield rose just
370 bps through 2022
Consumer spending remained resilient despite price pressures and extended credit levelsEnergy prices surged due to uncertainty, geopolitical conflict (war in Ukraine), and storage challenges2022 saw an uncommon phenomenon of both stocks and bonds posting negative
returns
-19.4%
-13.0%
-5.3%

1.5%

6.7%
-20%-15%-10%
-5%
0%5%
10%
S&P 500 Barclays
U.S. Bond
Aggregate
1-5 Year
Gov/Corp A
or Better
Cash Crude Oil
2022 Asset Class Returns
Source: Bloomberg, as of 12/31/2022.

CITY OF LOS ALTOS
For the Quarter Ended December 31, 2022
Market Update
© PFM Asset Management LLC pfmam.com |
1 53
Agenda Item # 4.

PFM Asset Management LLC
For the Quarter Ended March 31, 2022
California Affiliated Risk Management Authorities CLIENT NAME Market Update For the Quarter Ended December 31, 2022
Market Update
© PFM Asset Management LLC | pfmam.com
Current Market Themes
▸ The U.S. economy is characterized by:
▹ High inflation that shows signs of slowing▹ Continued strong labor market▹ Potentially declining health of U.S. household finances▹ Expectations for a modest yet broad economic downturn ▸ The Federal Reserve is expected to wrap up their normalization process
▹ Slowing pace of rate hikes▹ Fed projecting short-term fed funds rate to reach 5.00% to 5.25% by yearend, with markets expecting rate cuts in the second half of 2023▹ Fed officials reaffirm that restoring price stability is the utmost priority, despite risks of overtightening
▸ Volatile markets potentially calming
▹ Treasury yields in the belly of the curve (3-7 years) ended the quarter slightly lower, while shorter and longer maturities ended higher ▹ Yield curve inversion has deepened further since last quarter▹ While still elevated, volatility and liquidity challenges have begun subsiding

CITY OF LOS ALTOS
For the Quarter Ended December 31, 2022
Market Update
© PFM Asset Management LLC pfmam.com |
2 54
Agenda Item # 4.

For the Quarter Ended March 31, 2022
California Affiliated Risk Management Authorities CLIENT NAME Market Update For the Quarter Ended December 31, 2022
Market Update
© PFM Asset Management LLC | pfmam.com
Source: Bloomberg, as of 12/31/2022.

Rates Remain Sensitive to Fed and Inflation
The 2-year
Treasury is
commonly used
to gauge market
reactions and
near-term policy
expectations

3.75%4.00%4.25%4.50%4.75%5.00%
Oct-22 Nov-22 Dec-22 Jan-23
Hundreds
2-Year US Treasury Yield
October 13th CPI
Consumer prices rise more than expected, catalyzing uncertainty; +17 bps November 10th CPI
The first tangible sign that inflation is slowing; -24 bps November 3rd
Hawkish stance from the FOMC regarding higher rates; +10 bps November 30th
Powell confirms that upcoming rate hikes will be smaller; -16 bps

CITY OF LOS ALTOS
For the Quarter Ended December 31, 2022
Market Update
© PFM Asset Management LLC pfmam.com |
3 55
Agenda Item # 4.

Lower energy
and goods
prices help to
offset increases
in wage-driven
services costs
Dec-22

6.5%
-2%
0%2%4%6%8%
10%
Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Consumer Prices (CPI)
Top-Line Contributions and Year-over-Year Reading
Services (Ex Food & Energy) Goods (Ex Food & Energy) FoodEnergy Headline YoY% Bloomberg Forecasts
Q1‘23
Q2‘23
Q3‘23
Dec-22

CITY OF LOS ALTOS
For the Quarter Ended December 31, 2022
Market Update
© PFM Asset Management LLC pfmam.com |
4 56
Agenda Item # 4.

PFM Asset Management LLC
For the Quarter Ended March 31, 2022
California Affiliated Risk Management Authorities CLIENT NAME Market Update For the Quarter Ended December 31, 2022
Market Update
© PFM Asset Management LLC | pfmam.com
Source: Federal Reserve and Bloomberg. Individual dots represent each Fed members’ judgement of the midpoint of the appropriate target range for the federal funds rate at each year-end.

Fed’s “Dot Plot” Suggests Expectations for a Drawn Out Normalization of Policy 0%1%2%3%4%5%6%
Fed Participants’ Assessments of ‘Appropriate’ Monetary Policy Dec-22 FOMC ProjectionsDec-22 Median
Dec 2023 Dec 2024 Dec 2025 Longer Term

CITY OF LOS ALTOS
For the Quarter Ended December 31, 2022
Market Update
© PFM Asset Management LLC pfmam.com |
5 57
Agenda Item # 4.

For the Quarter Ended March 31, 2022
California Affiliated Risk Management Authorities Market Update What Could the Fed’s Pivot Look Like?

CLIENT NAME
For the Quarter Ended December 31, 2022
Market Update
© PFM Asset Management LLC | pfmam.com
+25
+50
+75 +75 +75 +75
+50
+25 +25
-25 -25 -25
0%1%
2%3%4%5%6%
-50-25
0 255075
100
Jan-22 May-22 Jul-22 Nov-22 Feb-23 May-23 Jul-23 Nov-23 Jan-24 Basis Point Change
FOMC Meeting Dates
Changes to the Target Fed Funds Rate
Actual Market Expectation FF Mid-Point (right axis)
Source: Bloomberg WIRP Interest Rate Probability as of 1/9/2023.

CITY OF LOS ALTOS
For the Quarter Ended December 31, 2022
Market Update
© PFM Asset Management LLC pfmam.com |
6 58
Agenda Item # 4.

PFM Asset Management LLC
For the Quarter Ended March 31, 2022
California Affiliated Risk Management Authorities CLIENT NAME Market Update For the Quarter Ended December 31, 2022
Market Update
© PFM Asset Management LLC | pfmam.com
Recession Gauge Flashing Yellow, but GDP Expected to Grow by End of Year Labor
market
Consumer
Retail sales
Manufacturing
Inverted
yield curve
Recession Risk
Rate hike cycle
Inflation

1.1%

0.1%
-0.6%

0.0%

0.9%

1.5%

1.8%
-2.0% -1.5%
-1.0%-0.5%

0.0%0.5%1.0%1.5%2.0%2.5%
Q4 '22 Q1 '23 Q2 '23 Q3 '23 Q4 '23 Q1 '24 Q2 '24
U.S. GDP Forecasts
Annualized Rate
Range Median of Forecasts
Source: Bloomberg, Economist Forecasts. Recession risk based on most recent economic data as of 1/9/2023.

Housing

CITY OF LOS ALTOS
For the Quarter Ended December 31, 2022
Market Update
© PFM Asset Management LLC pfmam.com |
7 59
Agenda Item # 4.

PFM Asset Management LLC
For the Quarter Ended June 30, 2022
California Affiliated Risk Management Authorities CLIENT NAME Market Update For the Quarter Ended December 31, 2022
Market Update
© PFM Asset Management LLC | pfmam.com
Yield Curve Inversion Deepens
4Q2022
12/31/22
3Q2022
09/30/22
QoQ
Change
3-month 4.34% 3.25% +1.10%
1-year 4.69% 3.93% +0.75%2-year 4.43% 4.28% +0.15%3-year 4.22% 4.29% -0.06%5-year 4.00% 4.09% -0.09% 10-year 3.87% 3.83% +0.05%30-year 3.96% 3.78% +0.19% 0.0%

1.0%2.0%3.0%4.0%5.0%
3 M
1 Y
2 Y
3 Y
4 Y
5 Y
10 Y
30 Y
Maturity
U.S. Treasury Yield Curve
December 31, 2022September 30, 2022December 31, 2021
Source: Bloomberg, as of December 2022.

Treasury yield in the belly of the
curve ended the quarter slightly
lower, while shorter and longer
maturities ended higher

CITY OF LOS ALTOS
For the Quarter Ended December 31, 2022
Market Update
© PFM Asset Management LLC pfmam.com |
8 60
Agenda Item # 4.

PFM Asset Management LLC
For the Quarter Ended March 31, 2022
California Affiliated Risk Management Authorities CLIENT NAME Market Update For the Quarter Ended December 31, 2022
Market Update
© PFM Asset Management LLC | pfmam.com
Higher Yields Can Offset Some of the Price Depreciation Woes Source: ICE BofAML Indices via Bloomberg, as of 12/31/2022. PFMAM Calculations. Income return represents the yield of the benchmark index, as of the end of the prior calendar year, respective to the year of performance shown.

4.34%

4.75%

4.22%

4.00% 3.97%

3.87%

2.5%3.0%

3.5%4.0%4.5%5.0%5.5%
Yield
U.S. Treasury Yield Curve
December 31, 2022September 30, 2022
3mo 2yr 5yr 7yr 10yr
2023
Starting Yield:

4.49%
-6%-4%
-2%
0%2%4%6%8%
10%
2000
2002
2004
2006
2008
2010
2012
2014
2016
2018
2020
2022
Annual Price & Income Returns
1-3 Year Treasury Index
Income Return Price Return Total Return

CITY OF LOS ALTOS
For the Quarter Ended December 31, 2022
Market Update
© PFM Asset Management LLC pfmam.com |
9 61
Agenda Item # 4.

PFM Asset Management LLC
For the Quarter Ended March 31, 2022
California Affiliated Risk Management Authorities CLIENT NAME Market Update For the Quarter Ended December 31, 2022
Market Update
© PFM Asset Management LLC | pfmam.com
Sector Yield Spreads
Source: ICE BofAML 1-3 year Indices via Bloomberg, MarketAxess and PFMAM as of 12/31/2022. Spreads on ABS and MBS are option-adjusted spreads of 0-3 year indices based on weighted average life; spreads on agencies are relative to comparable maturity Treasuries. CMBS is Commercial Mortgage-Backed Securities.

0.0%0.2%0.4%0.6%0.8%1.0%1.2%
Dec-21 Mar-22 Jun-22 Sep-22 Dec-22
Corporate Notes A-AAA Yield Spreads
-0.2%-0.1%

0.0%0.1%0.2%0.3%0.4%0.5%
Dec-21 Mar-22 Jun-22 Sep-22 Dec-22
Federal Agency Yield Spreads
Bullet Callable
-0.5%

0.0%0.5%1.0%1.5%2.0%
Dec-21 Mar-22 Jun-22 Sep-22 Dec-22
Mortgage-Backed Securities Yield Spreads
Agency MBS AAA CMBS

0.0%0.4%0.8%1.2%1.6%2.0%
Dec-21 Mar-22 Jun-22 Sep-22 Dec-22
Asset-Backed Securities AAA Yield Spreads

CITY OF LOS ALTOS
For the Quarter Ended December 31, 2022
Market Update
© PFM Asset Management LLC pfmam.com | 10 62 Agenda Item # 4.

PFM Asset Management LLC
For the Quarter Ended March 31, 2022
California Affiliated Risk Management Authorities CLIENT NAME Market Update For the Quarter Ended December 31, 2022
Market Update
© PFM Asset Management LLC | pfmam.com
Source: ICE BofAML Indices. ABS indices are 0-3 year, based on weighted average life. As of 12/31/2022.Right Chart: Generic US Treasury securities via Bloomberg, change in yield from 9/30/2022 to 12/31/2022.

Fixed-Income Markets in Q4 2022

0.74% 0.72% 0.75%

1.27%

1.57%

0.0%0.5%1.0%1.5%2.0%
U.S. Treasury
Agency
ABS
Corp A-AAA
Corp BBB
1-3 Year Indices Quarterly Returns

1.10%

0.85%

0.15%
-0.09%

0.05%
-0.20%

0.00%0.20%0.40%0.60%0.80%1.00%1.20%
3-Month 6-Month 2-Year 5-Year 10-Year
Change in U.S. Treasury Yield
September 30, 2022 – December 31, 2022

CITY OF LOS ALTOS
For the Quarter Ended December 31, 2022
Market Update
© PFM Asset Management LLC pfmam.com | 11 63 Agenda Item # 4.

PFM Asset Management LLC
For the Quarter Ended March 31, 2022
California Affiliated Risk Management Authorities CLIENT NAME Market Update For the Quarter Ended December 31, 2022
Market Update
© PFM Asset Management LLC | pfmam.com
Fixed-Income Sector Commentary – 4Q 2022
▸ U.S. Treasury yields settled into a wide range after
surging for the first three quarters of the year. Theresult of more stable yields was generally positivereturns for the quarter. ▸ Federal agency bullet spreads finally broke single
digits and climbed to the widest levels in the past 12months for certain maturities. Callable structures wereattractive early in the quarter as new issues came tomarket at wide levels on the heels of historically highbond volatility. ▸ Supranational issuance fell notably short of
expectations in Q4 limiting new investmentopportunities. Liquidity was better than that of federalagencies, which provided some ability to swap intoother sectors which were more attractive. ▸ Investment-Grade Corporate yield spreads
fluctuated in Q4 underscoring the historic levels ofvolatility experienced throughout the year. Afterreaching post-pandemic wides in late October, creditspreads reversed, ending the quarter modestly tighter.The sector generated strong excess returns in Q4 andbuoyed portfolio returns relative to benchmarks. ▸ Asset-Backed yield spreads lagged the narrowing
move in the corporate sector for much of Q4 butrallied into year end, ending the quarter only modestlywider than where they began. ABS and IG corporatespreads diverged markedly in November, growing tothe widest margin since 2020 and leading to a yearend rally which brought performance just shy ofmatched-duration U.S. Treasuries. ▸ Mortgage-Backed Securities reversed course in Q4
after the dreadful negative returns for the first threequarters of 2022. Although still negative for the year,excess returns on MBS were near top-of-classamongst investment-grade options in Q4. ▸ Taxable Municipal issuance remained
underwhelming as deals were heavily oversubscribed,dragging spreads lower, while secondary inventory atattractive levels was sparse. ▸ The short-term credit (commercial paper and CDs)
yield curve was notably steep throughout the quarteras the market priced the expectation for further Fedrate increases. The aggressive pace of those ratehikes created valuable opportunities in floating-ratesecurities.

CITY OF LOS ALTOS
For the Quarter Ended December 31, 2022
Market Update
© PFM Asset Management LLC pfmam.com | 12 64 Agenda Item # 4.

C O M M E R C I A L P A P E R
/ C D

T R E A S U R I E S
T-Bill
T-Note

F E D E R A L A G E N C I E S
Bullets
Callables

S U P R A N A T I O N A L S

C O R P O R A T E S
Financials
Industrials

S E C U R I T I Z E D
Asset-Backed
Agency Mortgage-Backed
Agency CMBS

M U N I C I P A L S

CITY OF LOS ALTOS
For the Quarter Ended December 31, 2022
Market Update
© PFM Asset Management LLC pfmam.com | 13 65 Agenda Item # 4. © PFM Asset Management LLC pfmam.com |
Portfolio Review:

CITY OF LOS ALTOS INVESTMENT PORTFOLIO
66 Agenda Item # 4.
© PFM Asset Management LLC pfmam.com

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

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

Acknowledged : PFM Asset Management LLC
15 67
Agenda Item # 4.
© PFM Asset Management LLC pfmam.com

CITY OF LOS ALTOS
For the Quarter Ended December 31, 2022
Account Summary
|

16.6%

27.9%

3.8%

1.9%

0.9%

7.8%

41.2%

0.0% 20.0% 40.0% 60.0% 80.0% 100.0%
ABS - $7,959,820
Corporate - $13,379,383
Negotiable CD - $1,807,197
Supranational - $907,793
Agency CMBS - $431,899
Federal Agency - $3,757,311
U.S. Treasury - $19,797,298
Portfolio Allocation Sector Limit for Analysis*
Sector Allocation Analytics
For informational/analytical purposes only and is not provided for compliance assurance. Includes accrued interest.*Sector Limit for Analysis is as derived from our interpretation of your most recent Investment Policy as provided. 16 68
Agenda Item # 4.
© PFM Asset Management LLC pfmam.com

CITY OF LOS ALTOS
For the Quarter Ended December 31, 2022
Account Summary
|
Account Summary

1. Yield at market, yield on cost, and portfolio duration only include investments held within the separately managed account(s), excludes balances invested in overnight funds.

CITY OF LOS ALTOS INVESTMENT PORTFOLIO
Portfolio Values December 31, 2022PFMAM Managed Account $47,862,225 Amortized Cost $49,882,256
Market Value $47,862,225
Accrued Interest $178,477
Cash $149,068
Analytics¹ December 31, 2022Yield at Market 4.49%
Yield on Cost 1.83%Portfolio Duration 1.66
17 69
Agenda Item # 4.
© PFM Asset Management LLC pfmam.com

CITY OF LOS ALTOS
For the Quarter Ended December 31, 2022
Portfolio Snapshot
|
Yield and duration calculations exclude cash and cash equivalents. Sector allocation includes market values and accrued interest.The portfolio’s benchmark is the ICE BofAML 1-3 Year U.S. Treasury Index. Source: Bloomberg.

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

1. Portfolio Snapshot - CITY OF LOS ALTOS INVESTMENT PORTFOLIO¹ Credit Quality - S&P
18%
51%
30%
1%
7%
58%
35%
0%
20%40%60%
0-1 Yr 1-2 Yrs 2-3 Yrs 3-4 Yrs
Portfolio Benchmark
Duration Distribution
U.S. Treasury | 41%Corporate | 28%
ABS | 17%
Federal Agency | 8%Negotiable CD | 4%Supranational | 2% Agency CMBS | 1%
Sector Allocation
AAA | 16%AA+ | 50%AA | 2%AA- | 3%A+ | 5%A | 9%A- | 10%
BBB+ | 2%
A-2 | 1%
Not Rated | 2%
Portfolio Statistics
Portfolio Effective Duration 1.66 years
Benchmark Effective Duration 1.74 yearsPortfolio Credit Quality AA Yield At Market 4.49%
Yield At Cost 1.83%
Total Market Value $48,189,769.61
Securities Sub-Total $47,862,225.29Cash $149,067.57
Accrued Interest $178,476.75
18 70
Agenda Item # 4.
© PFM Asset Management LLC pfmam.com

CITY OF LOS ALTOS
For the Quarter Ended December 31, 2022
Portfolio Characteristics
|
$0.0$9.8
$19.6$29.4$39.2$49.0
Millions
December 2022
$0.0$9.8
$19.6$29.4$39.2$49.0
Millions
September 2022
$0.0$9.8
$19.6$29.4$39.2$49.0
Millions
June 2022
$0.0$9.8
$19.6$29.4$39.2$49.0
Millions
March 2022
Sector Allocation Review - CITY OF LOS ALTOS INVESTMENT PORTFOLIO U.S. Treasury Federal Agency Agency CMBS Supranational Negotiable CD Corporate ABS Market values, excluding accrued interest. Only includes fixed-income securities held within the separately managed account(s) and LGIPs managed by PFMAM. Detail may not add to total due to rounding.

Security Type Mar-22 % of Total Jun-22 % of Total Sep-22 % of Total Dec-22 % of Total U.S. Treasury $20.5 42.1% $21.3 44.3% $22.0 46.1% $19.7 41.3%Federal Agency $8.1 16.8% $6.4 13.4% $4.0 8.3% $3.8 7.8% Agency CMBS $0.9 1.8% $0.5 1.0% $0.7 1.5% $0.4 0.9%
Supranational $1.7 3.6% $1.3 2.8% $0.9 1.9% $0.9 1.9%Negotiable CD $1.0 2.1% $1.0 2.1% $1.4 2.9% $1.8 3.7%Corporate $11.4 23.4% $11.1 23.1% $11.9 25.0% $13.3 27.8% ABS $4.9 10.2% $6.4 13.3% $6.8 14.3% $7.9 16.6%
Total $48.5 100.0% $48.0 100.0% $47.6 100.0% $47.9 100.0% 19 71
Agenda Item # 4.
© PFM Asset Management LLC pfmam.com

CITY OF LOS ALTOS
For the Quarter Ended December 31, 2022
Portfolio Activity
|
Portfolio Activity - CITY OF LOS ALTOS INVESTMENT PORTFOLIO Net Activity by Sector
($ millions)
U.S. Treasury
Agency CMBS
Federal AgencyNegotiable CD
ABS
Corporate
U.S. Treasury
Agency CMBS
Federal Agency
Negotiable CD
ABS
Corporate
($6.0) ($4.0) ($2.0) $0.0 $2.0
Based on total proceeds (principal and accrued interest) of buys, sells, maturities, and principal paydowns. Detail may not add to total due to rounding.

Sector Net ActivityCorporate $1,304,316
ABS $1,147,033
Negotiable CD $422,018Federal Agency ($217,151)
Agency CMBS ($281,072)
U.S. Treasury ($2,331,118)Total Net Activity $44,025
Sales/Maturities Purchases
20 72
Agenda Item # 4.
© PFM Asset Management LLC pfmam.com

CITY OF LOS ALTOS
For the Quarter Ended December 31, 2022
Portfolio Performance
|

1. The lesser of 10 years or since inception is shown. Since inception returns for periods one year or less are not shown. Performance inception date is June 30, 2010.2. Interest earned calculated as the ending accrued interest less beginning accrued interest, plus net interest activity.3. Returns for periods one year or less are presented on a periodic basis. Returns for periods greater than one year are presented on an annualized basis.4. The portfolio’s benchmark is the ICE BofAML 1-3 Year U.S. Treasury Index. Source: Bloomberg. -4.0%-3.0%-2.0%-1.0%

0.0%1.0%2.0%
Return
Portfolio Benchmark Net of Fees
Portfolio Performance
Market Value Basis Earnings 3 Months 1 Year 3 Years 5 Years 10 YearsInterest Earned² $201,363 $580,143 $2,335,334 $4,789,433 $6,448,590 Change in Market Value $183,654 ($2,200,922) ($2,210,718) ($1,414,487) ($1,959,846) Total Dollar Return $385,017 ($1,620,779) $124,616 $3,374,946 $4,488,744Total Return³ Portfolio 0.81% -3.18% -0.10% 1.08% 0.88%Benchmark⁴ 0.74% -3.65% -0.41% 0.77% 0.67%Basis Point Fee 0.02% 0.09% 0.09% 0.09% 0.09%Net of Fee Return 0.78% -3.27% -0.19% 0.99% 0.79% 3 Months 1 Year 3 Years 5 Years 10 Years
21 73
Agenda Item # 4.
© PFM Asset Management LLC pfmam.com

CITY OF LOS ALTOS
For the Quarter Ended December 31, 2022
Portfolio Performance
|

1. The lesser of 10 years or since inception is shown. Performance inception date is June 30, 2010.2. Interest earned calculated as the ending accrued interest less beginning accrued interest, plus net interest activity.3. Realized gains / (losses) are shown on an amortized cost basis.

Accrual Basis Earnings - CITY OF LOS ALTOS INVESTMENT PORTFOLIO Accrual Basis EarningsInterest Earned²Realized Gains / (Losses)³Change in Amortized CostTotal Earnings 3 Months
$201,363
($187,692)
($7,307)
$6,364
1 Year
$580,143
($372,956)
($71,127)
$136,060
3 Years
$2,335,334
$649,040
($184,845)
$2,799,529
5 Year
$4,789,433
$323,773
($115,937)
$4,997,269
10 Year¹
$6,448,590
$328,558
($209,911)
$6,567,237
22 74
Agenda Item # 4.
© PFM Asset Management LLC pfmam.com |
Portfolio Holdings and Transactions
75 Agenda Item # 4.
© PFM Asset Management LLC pfmam.com

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

Issuer Diversification
Security Type / Issuer Market Value (%) S&P / Moody's / FitchU.S. Treasury 41.2% UNITED STATES TREASURY 41.2% AA / Aaa / AAA
Federal Agency 7.8%
FEDERAL HOME LOAN BANKS 1.0% AA / Aaa / NR
FREDDIE MAC 6.8% AA / Aaa / AAA
Agency CMBS 0.9%
FANNIE MAE 0.4% AA / Aaa / AAA
FREDDIE MAC 0.5% AA / Aaa / AAA
Supranational 1.9%
INTER-AMERICAN DEVELOPMENT BANK 1.0% AAA / Aaa / AAA
INTL BANK OF RECONSTRUCTION AND DEV 0.9% AAA / Aaa / AAA Negotiable CD 3.8%
CREDIT AGRICOLE SA 0.8% A / Aa / AA
CREDIT SUISSE GROUP RK 0.9% BBB / A / BBB
NORDEA BANK ABP 1.0% AA / Aa / AATORONTO-DOMINION BANK 1.1% A / A / NR Corporate 27.9%
ABBOTT LABORATORIES 0.3% AA / A / NRAMAZON.COM INC 1.1% AA / A / AA AMERICAN EXPRESS CO 0.8% BBB / A / AAMERICAN HONDA FINANCE 0.9% A / A / AANZ BANKING GROUP LTD 0.5% AA / Aa / AASTRAZENECA PLC 0.6% A / A / A BANK OF AMERICA CO 1.4% A / A / AA
BRISTOL-MYERS SQUIBB CO 0.4% A / A / NRBROWN-FORMAN CORP 0.2% A / A / NRBURLINGTON NORTHERN SANTA FE 0.3% AA / A / NR Security Type / Issuer Market Value (%) S&P / Moody's / FitchCorporate 27.9% CATERPILLAR INC 0.8% A / A / ACHARLES SCHWAB 0.3% A / A / ACINTAS CORPORATION NO. 2 0.4% A / A / NRCITIGROUP INC 0.8% BBB / A / ACOLGATE-PALMOLIVE COMPANY 0.1% AA / Aa / NRCOMCAST CORP 0.8% A / A / ADEERE & COMPANY 0.7% A / A / AEXXON MOBIL CORP 0.3% AA / Aa / NRGENERAL DYNAMICS CORP 0.3% A / A / NRGOLDMAN SACHS GROUP INC 0.6% BBB / A / AHERSHEY COMPANY 0.2% A / A / NRHOME DEPOT INC 0.2% A / A / AHONEYWELL INTERNATIONAL 0.8% A / A / AHORMEL FOODS CORP 0.3% A / A / NRHSBC HOLDINGS PLC 0.8% A / A / AIBM CORP 0.8% A / A / NRJP MORGAN CHASE & CO 1.5% A / A / AALOCKHEED MARTIN CORP 0.4% A / A / AMERCK & CO INC 0.3% A / A / NRMORGAN STANLEY 0.7% A / A / ANATIONAL AUSTRALIA BANK LTD 0.5% AA / Aa / NR

NATIONAL RURAL UTILITIES CO FINANCECORP

0.5% A / A / A
PACCAR FINANCIAL CORP 0.8% A / A / NRPNC FINANCIAL SERVICES GROUP 0.7% A / A / APRAXAIR INC 0.9% A / A / NRRABOBANK NEDERLAND 1.0% A / Aa / AA 24 76
Agenda Item # 4.
© PFM Asset Management LLC pfmam.com

Issuer Diversification
Security Type / Issuer Market Value (%) S&P / Moody's / FitchCorporate 27.9% STATE STREET CORPORATION 0.7% A / A / AA
TARGET CORP 0.4% A / A / ATEXAS INSTRUMENTS INC 0.1% A / Aa / NR

THE BANK OF NEW YORK MELLONCORPORATION

1.5% A / A / AA
TOYOTA MOTOR CORP 0.8% A / A / ATRUIST FIN CORP 0.7% A / A / AUNILEVER PLC 0.5% A / A / AUNITEDHEALTH GROUP INC 0.5% A / A / AWAL-MART STORES INC 0.5% AA / Aa / AA ABS 16.6%
ALLY AUTO RECEIVABLES TRUST 1.4% AAA / Aaa / NR
AMERICAN EXPRESS CO 1.0% AAA / NR / AAA
BMW FINANCIAL SERVICES NA LLC 0.1% AAA / Aaa / NRBMW VEHICLE OWNER TRUST 0.3% AAA / Aaa / AAACAPITAL ONE FINANCIAL CORP 2.1% AAA / Aaa / AAACARMAX AUTO OWNER TRUST 2.4% AAA / Aaa / AAADISCOVER FINANCIAL SERVICES 1.4% AAA / Aaa / AAAFORD CREDIT AUTO OWNER TRUST 0.3% AAA / NR / AAAGM FINANCIAL CONSUMER AUTOMOBILETRUST

1.2% AAA / Aaa / AAA
GM FINANCIAL LEASINGTRUST 0.3% AAA / NR / AAAHARLEY-DAVIDSON MOTORCYCLE TRUST 0.5% AAA / Aaa / NRHONDA AUTO RECEIVABLES 0.5% AAA / Aaa / AAAHYUNDAI AUTO RECEIVABLES 1.5% AAA / NR / AAAMERCEDES-BENZ AUTO LEASE TRUST 0.0% AAA / NR / AAAMERCEDES-BENZ AUTO RECEIVABLES 0.8% AAA / Aaa / NR Security Type / Issuer Market Value (%) S&P / Moody's / FitchABS 16.6% NISSAN AUTO RECEIVABLES 0.6% AAA / Aaa / NRTOYOTA MOTOR CORP 0.9% AAA / Aaa / AAAVERIZON OWNER TRUST 0.4% AAA / Aaa / AAAVOLKSWAGEN AUTO LEASE TURST 0.2% NR / Aaa / AAAWORLD OMNI AUTO REC TRUST 0.5% AAA / NR / AAA Total 100.0%
25 77
Agenda Item # 4.
© PFM Asset Management LLC pfmam.com

CITY OF LOS ALTOS
For the Quarter Ended December 31, 2022
Portfolio Composition
|
Issuer Distribution
As of December 31, 2022
Issuer Market Value ($) % of PortfolioUNITED STATES TREASURY 19,743,695 41.26%FREDDIE MAC 3,525,943 7.38%CARMAX AUTO OWNER TRUST 1,154,289 2.42%CAPITAL ONE FINANCIAL CORP 1,000,842 2.10% AMERICAN EXPRESS CO 838,481 1.76%
TOYOTA MOTOR CORP 801,036 1.68%HYUNDAI AUTO RECEIVABLES 739,901 1.55%THE BANK OF NEW YORK MELLON CORPORATION 729,703 1.52%JP MORGAN CHASE & CO 701,501 1.47%DISCOVER FINANCIAL SERVICES 695,441 1.45% ALLY AUTO RECEIVABLES TRUST 685,483 1.43%
BANK OF AMERICA CO 680,619 1.42%GM FINANCIAL CONSUMER AUTOMOBILE TRUST 563,858 1.18% AMAZON.COM INC 549,909 1.15%
TORONTO-DOMINION BANK 499,779 1.04%INTER-AMERICAN DEVELOPMENT BANK 498,526 1.04%NORDEA BANK ABP 494,459 1.03%RABOBANK NEDERLAND 479,189 1.00%FEDERAL HOME LOAN BANKS 467,450 0.98%CREDIT SUISSE GROUP RK 420,897 0.88%PRAXAIR INC 418,226 0.87%INTL BANK OF RECONSTRUCTION AND DEV 408,430 0.85% AMERICAN HONDA FINANCE 407,322 0.85%
MERCEDES-BENZ AUTO RECEIVABLES 393,186 0.82%
26 78
Agenda Item # 4.
© PFM Asset Management LLC pfmam.com

CITY OF LOS ALTOS
For the Quarter Ended December 31, 2022
Portfolio Composition
|
Issuer Market Value ($) % of PortfolioCITIGROUP INC 384,962 0.80%CATERPILLAR INC 380,536 0.80%CREDIT AGRICOLE SA 375,000 0.78%PACCAR FINANCIAL CORP 374,623 0.78%COMCAST CORP 374,132 0.78%HONEYWELL INTERNATIONAL 371,878 0.78%IBM CORP 368,898 0.77%HSBC HOLDINGS PLC 367,436 0.77%MORGAN STANLEY 355,433 0.74%PNC FINANCIAL SERVICES GROUP 352,094 0.74%TRUIST FIN CORP 351,819 0.74%DEERE & COMPANY 351,684 0.73%STATE STREET CORPORATION 345,035 0.72%GOLDMAN SACHS GROUP INC 292,459 0.61% ASTRAZENECA PLC 273,754 0.57%
NISSAN AUTO RECEIVABLES 264,467 0.55%NATIONAL RURAL UTILITIES CO FINANCE CORP 260,235 0.54%UNITEDHEALTH GROUP INC 259,849 0.54%HARLEY-DAVIDSON MOTORCYCLE TRUST 257,685 0.54%WORLD OMNI AUTO REC TRUST 255,845 0.53% ANZ BANKING GROUP LTD 250,945 0.52%
NATIONAL AUSTRALIA BANK LTD 246,980 0.52%HONDA AUTO RECEIVABLES 235,398 0.49%WAL-MART STORES INC 221,904 0.46%UNILEVER PLC 215,249 0.45%VERIZON OWNER TRUST 206,111 0.43%TARGET CORP 195,890 0.41% 27 79
Agenda Item # 4.
© PFM Asset Management LLC pfmam.com

CITY OF LOS ALTOS
For the Quarter Ended December 31, 2022
Portfolio Composition
|
Issuer Market Value ($) % of PortfolioBRISTOL-MYERS SQUIBB CO 192,966 0.40%FANNIE MAE 191,805 0.40%LOCKHEED MARTIN CORP 176,151 0.37%CINTAS CORPORATION NO. 2 169,444 0.35%CHARLES SCHWAB 166,566 0.35%BMW VEHICLE OWNER TRUST 166,539 0.35%HORMEL FOODS CORP 164,780 0.34%GENERAL DYNAMICS CORP 160,532 0.34% ABBOTT LABORATORIES 160,012 0.33%
GM FINANCIAL LEASINGTRUST 149,032 0.31%MERCK & CO INC 124,651 0.26%EXXON MOBIL CORP 124,272 0.26%FORD CREDIT AUTO OWNER TRUST 123,673 0.26%BURLINGTON NORTHERN SANTA FE 120,193 0.25%HERSHEY COMPANY 118,729 0.25%BROWN-FORMAN CORP 112,067 0.23%VOLKSWAGEN AUTO LEASE TURST 97,426 0.20%HOME DEPOT INC 92,457 0.19%TEXAS INSTRUMENTS INC 54,942 0.11%COLGATE-PALMOLIVE COMPANY 53,160 0.11%BMW FINANCIAL SERVICES NA LLC 40,938 0.09%MERCEDES-BENZ AUTO LEASE TRUST 13,426 0.03% Grand Total 47,862,225 100.00%
28 80
Agenda Item # 4.
© PFM Asset Management LLC pfmam.com

CITY OF LOS ALTOS
For the Quarter Ended December 31, 2022
Portfolio Holdings
|
Managed Account Detail of Securities Held
Security Type/DescriptionDated Date/Coupon/Maturity CUSIP Par S&P
Rating
Moody's
Rating
Settle
Date
Original
Cost
Trade
Date
YTM
at Cost
Accrued
Interest
Market
Value
Amortized
Cost
U.S. Treasury
US TREASURY N/B NOTESDTD 11/30/2021 0.500% 11/30/2023
91282CDM0 600,000.00 AA+ Aaa 12/1/2021 12/3/2021 599,039.06 0.58 263.74 599,559.84 577,218.72 US TREASURY NOTESDTD 12/15/2020 0.125% 12/15/2023
91282CBA8 1,500,000.00 AA+ Aaa 1/6/2021 1/7/2021 1,496,425.78 0.21 87.57 1,498,839.71 1,436,718.75 US TREASURY NOTESDTD 01/15/2021 0.125% 01/15/2024
91282CBE0 2,300,000.00 AA+ Aaa 2/2/2021 2/3/2021 2,296,316.41 0.18 1,328.13 2,298,702.53 2,192,906.25 US TREASURY NOTESDTD 02/15/2021 0.125% 02/15/2024
91282CBM2 350,000.00 AA+ Aaa 2/23/2021 2/25/2021 349,015.63 0.22 165.25 349,628.03 332,500.00 US TREASURY NOTESDTD 02/15/2021 0.125% 02/15/2024
91282CBM2 1,250,000.00 AA+ Aaa 3/1/2021 3/3/2021 1,244,580.08 0.27 590.18 1,247,940.53 1,187,500.00 US TREASURY NOTESDTD 05/01/2017 2.000% 04/30/2024
912828X70 575,000.00 AA+ Aaa 4/1/2021 4/5/2021 603,547.85 0.37 1,969.61 587,351.21 554,785.19 US TREASURY N/B NOTESDTD 06/15/2021 0.250% 06/15/2024
91282CCG4 142,000.00 AA+ Aaa 6/22/2021 6/24/2021 141,173.52 0.45 16.58 141,596.26 133,280.32 US TREASURY N/B NOTESDTD 06/15/2021 0.250% 06/15/2024
91282CCG4 2,000,000.00 AA+ Aaa 7/1/2021 7/7/2021 1,987,031.25 0.47 233.52 1,993,588.08 1,877,187.60 US TREASURY N/B NOTESDTD 07/15/2021 0.375% 07/15/2024
91282CCL3 600,000.00 AA+ Aaa 8/9/2021 8/10/2021 599,367.19 0.41 1,039.40 599,668.22 561,937.50 US TREASURY N/B NOTESDTD 07/15/2021 0.375% 07/15/2024
91282CCL3 750,000.00 AA+ Aaa 8/4/2021 8/6/2021 750,878.91 0.33 1,299.25 750,459.10 702,421.88 US TREASURY N/B NOTESDTD 08/15/2021 0.375% 08/15/2024
91282CCT6 1,575,000.00 AA+ Aaa 9/1/2021 9/3/2021 1,573,277.34 0.41 2,230.89 1,574,053.10 1,471,394.61 US TREASURY N/B NOTESDTD 09/15/2021 0.375% 09/15/2024
91282CCX7 1,000,000.00 AA+ Aaa 10/1/2021 10/6/2021 995,937.50 0.51 1,118.78 997,645.64 931,718.80 US TREASURY NOTESDTD 10/31/2019 1.500% 10/31/2024
912828YM6 1,650,000.00 AA+ Aaa 5/4/2021 5/6/2021 1,710,263.67 0.44 4,238.95 1,681,645.52 1,562,859.38 US TREASURY NOTESDTD 11/30/2019 1.500% 11/30/2024
912828YV6 575,000.00 AA+ Aaa 6/15/2021 6/17/2021 595,911.13 0.44 758.24 586,582.31 544,003.93 US TREASURY NOTESDTD 11/30/2019 1.500% 11/30/2024
912828YV6 975,000.00 AA+ Aaa 6/2/2021 6/7/2021 1,011,181.64 0.42 1,285.72 994,882.84 922,441.46 29 81
Agenda Item # 4.
© PFM Asset Management LLC pfmam.com

CITY OF LOS ALTOS
For the Quarter Ended December 31, 2022
Portfolio Holdings
|
Security Type/DescriptionDated Date/Coupon/Maturity CUSIP Par S&P
Rating
Moody's
Rating
Settle
Date
Original
Cost
Trade
Date
YTM
at Cost
Accrued
Interest
Market
Value
Amortized
Cost
U.S. Treasury
US TREASURY N/B NOTESDTD 12/15/2021 1.000% 12/15/2024
91282CDN8 325,000.00 AA+ Aaa 1/3/2022 1/5/2022 324,771.48 1.02 151.79 324,848.22 304,078.13 US TREASURY NOTESDTD 06/30/2020 0.250% 06/30/2025
912828ZW3 1,000,000.00 AA+ Aaa 6/1/2022 6/3/2022 923,281.25 2.88 6.91 937,764.22 905,625.00 US TREASURY N/B NOTESDTD 07/15/2022 3.000% 07/15/2025
91282CEY3 1,200,000.00 AA+ Aaa 8/5/2022 8/8/2022 1,195,453.13 3.14 16,630.43 1,196,072.39 1,162,125.00 US TREASURY N/B NOTESDTD 07/15/2022 3.000% 07/15/2025
91282CEY3 425,000.00 AA+ Aaa 9/1/2022 9/6/2022 418,708.01 3.55 5,889.95 419,413.82 411,585.94 US TREASURY N/B NOTESDTD 09/15/2022 3.500% 09/15/2025
91282CFK2 600,000.00 AA+ Aaa 10/6/2022 10/11/2022 587,976.56 4.23 6,265.19 588,897.98 587,812.50 US TREASURY N/B NOTESDTD 11/15/2022 4.500% 11/15/2025
91282CFW6 1,375,000.00 AA+ Aaa 12/16/2022 12/16/2022 1,393,906.25 3.99 8,033.49 1,393,622.21 1,383,593.75 Security Type Sub-Total 20,767,000.00 20,798,043.64 1.09 53,603.57 20,762,761.76 19,743,694.71 Supranational
INTL BK RECON & DEVELOP NOTESDTD 11/24/2020 0.250% 11/24/2023 459058JM6 425,000.00 AAA Aaa 11/17/2020 11/24/2020 424,086.25 0.32 109.20 424,727.13 408,429.68 INTER-AMERICAN DEVEL BK NOTESDTD 09/23/2021 0.500% 09/23/2024 4581X0DZ8 535,000.00 AAA Aaa 9/15/2021 9/23/2021 534,604.10 0.52 728.19 534,772.07 498,526.38 Security Type Sub-Total 960,000.00 958,690.35 0.43 837.39 959,499.20 906,956.06 Negotiable CD
CREDIT SUISSE NEW YORK CERTDEPOSDTD 03/23/2021 0.590% 03/17/2023 22552G3C2 425,000.00 A-2 P-2 3/19/2021 3/23/2021 425,000.00 0.59 2,019.93 425,000.00 420,897.05 CREDIT AGRICOLE CIB NY CERTDEPOSDTD 08/19/2022 4.100% 08/16/2024 22536AZR8 375,000.00 A+ Aa3 8/17/2022 8/19/2022 375,000.00 4.07 5,765.63 375,000.00 375,000.00 TORONTO DOMINION BANK NY CERTDEPOSDTD 10/31/2022 5.600% 10/27/2025 89115B6K1 500,000.00 A A1 10/27/2022 10/31/2022 500,000.00 5.58 4,822.22 500,000.00 499,778.90 30 82
Agenda Item # 4.
© PFM Asset Management LLC pfmam.com

CITY OF LOS ALTOS
For the Quarter Ended December 31, 2022
Portfolio Holdings
|
Security Type/DescriptionDated Date/Coupon/Maturity CUSIP Par S&P
Rating
Moody's
Rating
Settle
Date
Original
Cost
Trade
Date
YTM
at Cost
Accrued
Interest
Market
Value
Amortized
Cost
Negotiable CD
NORDEA BANK ABP NEW YORK CERTDEPOSDTD 11/03/2022 5.530% 11/03/2025 65558UYF3 500,000.00 AA- Aa3 11/2/2022 11/3/2022 500,000.00 5.53 4,454.72 500,000.00 494,458.50 Security Type Sub-Total 1,800,000.00 1,800,000.00 4.08 17,062.50 1,800,000.00 1,790,134.45 Federal Agency
FREDDIE MAC NOTESDTD 08/21/2020 0.250% 08/24/2023
3137EAEV7 675,000.00 AA+ Aaa 8/19/2020 8/21/2020 674,311.50 0.28 595.31 674,852.64 655,479.68 FREDDIE MAC NOTESDTD 09/04/2020 0.250% 09/08/2023
3137EAEW5 735,000.00 AA+ Aaa 9/2/2020 9/4/2020 734,757.45 0.26 576.77 734,944.82 712,429.62 FREDDIE MAC NOTESDTD 09/04/2020 0.250% 09/08/2023
3137EAEW5 625,000.00 AA+ Aaa 10/7/2020 10/8/2020 624,800.00 0.26 490.45 624,953.05 605,807.50 FREDDIE MAC NOTESDTD 09/04/2020 0.250% 09/08/2023
3137EAEW5 465,000.00 AA+ Aaa 9/2/2020 9/4/2020 465,084.91 0.24 364.90 465,019.32 450,720.78 FREDDIE MAC NOTESDTD 12/04/2020 0.250% 12/04/2023
3137EAFA2 900,000.00 AA+ Aaa 12/2/2020 12/4/2020 899,109.00 0.28 168.75 899,725.78 862,491.60 FEDERAL HOME LOAN BANK NOTES(CALLABLE)DTD 11/08/2021 1.000% 11/08/2024 3130APQ81 500,000.00 AA+ Aaa 8/5/2022 8/9/2022 474,207.91 3.40 736.11 478,757.61 467,450.00 Security Type Sub-Total 3,900,000.00 3,872,270.77 0.66 2,932.29 3,878,253.22 3,754,379.18 Corporate
GOLDMAN SACHS CORP NOTESDTD 03/03/2014 4.000% 03/03/2024 38141GVM3 150,000.00 BBB+ A2 1/21/2021 1/25/2021 165,336.00 0.67 1,966.67 155,779.76 148,106.10 CHARLES SCHWAB CORP NOTES(CALLABLE)DTD 03/18/2021 0.750% 03/18/2024 808513BN4 175,000.00 A A2 3/16/2021 3/18/2021 174,912.50 0.77 375.52 174,964.71 166,566.05 COMCAST CORP (CALLABLE)CORPORATE NOTESDTD 10/05/2018 3.700% 04/15/2024 20030NCR0 200,000.00 A- A3 5/7/2020 5/11/2020 219,118.00 1.20 1,562.22 205,977.78 196,907.40 AMAZON.COM INC CORPORATE
NOTESDTD 05/12/2021 0.450% 05/12/2024
023135BW5 225,000.00 AA A1 5/10/2021 5/12/2021 224,671.50 0.50 137.81 224,851.04 212,260.73 31 83
Agenda Item # 4.
© PFM Asset Management LLC pfmam.com

ASTRAZENECA FINANCE LLC
(CALLABLE) CORPDTD 05/28/2021 0.700% 05/28/2024
04636NAC7 290,000.00 A A3 5/25/2021 5/28/2021 289,973.90 0.70 186.08 289,987.78 273,753.62 HORMEL FOODS CORP NOTES(CALLABLE)DTD 06/03/2021 0.650% 06/03/2024 440452AG5 175,000.00 A A1 3/10/2022 3/14/2022 169,457.75 2.12 88.47 171,457.60 164,780.00 JOHN DEERE CAPITAL CORPCORPORATE NOTESDTD 06/10/2021 0.450% 06/07/2024 24422EVQ9 80,000.00 A A2 6/7/2021 6/10/2021 79,900.00 0.49 24.00 75,201.68 79,952.15 TARGET CORP CORPORATE NOTESDTD 06/26/2014 3.500% 07/01/2024 87612EBD7 200,000.00 A A2 11/23/2021 11/29/2021 212,528.00 1.04 3,500.00 207,251.66 195,889.80 BANK OF AMERICA (CALLABLE)CORP NOTESDTD 07/23/2018 3.864% 07/23/2024 06051GHL6 200,000.00 A- A2 9/28/2020 10/1/2020 216,830.00 1.58 3,391.73 203,390.21 197,797.80 BRISTOL MYERS SQUIBB CO CORPNOTES (CALLDTD 01/26/2020 2.900% 07/26/2024 110122CM8 83,000.00 A+ A2 10/5/2020 10/7/2020 89,863.27 0.69 1,036.35 85,739.24 80,746.47

AMERICAN EXPRESS CO CORP
NOTES (CALLABLEDTD 07/30/2019 2.500% 07/30/2024
025816CG2 225,000.00 BBB+ A2 11/19/2021 11/23/2021 233,055.00 1.14 2,359.38 229,629.51 216,851.40 32 84
Agenda Item # 4.
© PFM Asset Management LLC pfmam.com

AMERICAN HONDA FINANCE
CORPORATE NOTESDTD 09/09/2021 0.750% 08/09/2024
02665WDY4 185,000.00 A- A3 9/7/2021 9/9/2021 184,877.90 0.77 547.29 184,932.82 173,164.07 UNILEVER CAPITAL CORP(CALLABLE) CORPORADTD 08/12/2021 0.626% 08/12/2024 904764BN6 100,000.00 A+ A1 8/9/2021 8/12/2021 100,000.00 0.63 241.71 100,000.00 93,838.00 COOPERAT RABOBANK UA/NYCORPORATE NOTESDTD 08/22/2022 3.875% 08/22/2024 21688AAU6 250,000.00 A+ Aa2 8/15/2022 8/22/2022 249,885.00 3.90 3,471.35 249,905.77 245,813.25 GOLDMAN SACHS GROUP INC(CALLABLE) CORPDTD 06/10/2021 0.657% 09/10/2024 38141GYE8 150,000.00 BBB+ A2 6/7/2021 6/10/2021 150,000.00 0.66 303.86 150,000.00 144,353.10 TOYOTA MOTOR CREDIT CORPCORPORATE NOTESDTD 09/13/2021 0.625% 09/13/2024 89236TJN6 200,000.00 A+ A1 9/8/2021 9/13/2021 199,906.00 0.64 375.00 199,946.74 186,409.00 BANK OF AMERICA CORP(CALLABLE) CORPORATDTD 10/21/2020 0.810% 10/24/2024 06051GJH3 275,000.00 A- A2 10/16/2020 10/21/2020 275,000.00 0.81 414.56 275,000.00 263,751.95 HONEYWELL INTERNATIONALCORPORATE NOTESDTD 11/02/2022 4.850% 11/01/2024 438516CH7 210,000.00 A A2 10/28/2022 11/2/2022 209,964.30 4.86 1,669.21 209,967.23 210,015.54 TEXAS INSTRUMENTS INCCORPORATE NOTESDTD 11/18/2022 4.700% 11/18/2024 882508BR4 55,000.00 A+ Aa3 11/15/2022 11/18/2022 54,975.25 4.72 308.76 54,976.74 54,942.20 JOHN DEERE CAPITAL CORPCORPORATE NOTESDTD 01/10/2022 1.250% 01/10/2025 24422EVY2 220,000.00 A A2 1/4/2022 1/10/2022 219,896.60 1.27 1,306.25 219,930.19 205,570.42 COOPERATIEVE RABOBANK UACORPORATE NOTESDTD 01/12/2022 1.375% 01/10/2025 21688AAS1 250,000.00 A+ Aa2 1/19/2022 1/24/2022 248,020.00 1.65 1,632.81 248,645.84 233,376.00

AMERICAN HONDA FINANCE
CORPORATE NOTESDTD 01/13/2022 1.500% 01/13/2025
02665WEA5 250,000.00 A- A3 1/11/2022 1/13/2022 249,802.50 1.53 1,750.00 249,866.11 234,158.00 33 85
Agenda Item # 4.
© PFM Asset Management LLC pfmam.com

AMERICAN EXPRESS CO CORP
NOTES (CALLABLEDTD 03/04/2022 2.250% 03/04/2025
025816CQ0 50,000.00 BBB+ A2 3/1/2022 3/4/2022 49,949.50 2.29 365.63 49,963.46 47,207.40

AMERICAN EXPRESS CO CORP
NOTES (CALLABLEDTD 03/04/2022 2.250% 03/04/2025
025816CQ0 100,000.00 BBB+ A2 3/2/2022 3/4/2022 99,821.00 2.31 731.25 99,870.49 94,414.80 EXXON MOBIL CORP CORPORATE NT(CALLABLE)DTD 03/06/2015 2.709% 03/06/2025 30231GAF9 130,000.00 AA- Aa2 3/26/2021 3/30/2021 138,049.60 1.10 1,124.99 134,213.04 124,272.07 JOHN DEERE CAPITAL CORPCORPORATE NOTESDTD 03/07/2022 2.125% 03/07/2025 24422EWB1 25,000.00 A A2 3/2/2022 3/7/2022 24,989.25 2.14 168.23 24,992.19 23,637.18 JOHN DEERE CAPITAL CORPCORPORATE NOTESDTD 03/07/2022 2.125% 03/07/2025 24422EWB1 50,000.00 A A2 3/3/2022 3/7/2022 50,100.00 2.06 336.46 50,072.63 47,274.35

ABBOTT LABORATORIES CORP NOTE
(CALLABLE)DTD 03/10/2015 2.950% 03/15/2025
002824BB5 165,000.00 AA- A1 3/10/2022 3/14/2022 167,547.60 2.41 1,433.21 166,806.34 160,012.05 34 86
Agenda Item # 4.
© PFM Asset Management LLC pfmam.com

CITY OF LOS ALTOS
For the Quarter Ended December 31, 2022
Portfolio Holdings
|
Security Type/DescriptionDated Date/Coupon/Maturity CUSIP Par S&P
Rating
Moody's
Rating
Settle
Date
Original
Cost
Trade
Date
YTM
at Cost
Accrued
Interest
Market
Value
Amortized
Cost
Corporate
UNILEVER CAPITAL CORP NOTES(CALLABLE)DTD 03/22/2018 3.375% 03/22/2025 904764BB2 125,000.00 A+ A1 2/22/2022 2/24/2022 129,088.75 2.27 1,160.16 127,393.28 121,411.25 BURLINGTN NORTH SANTA FE CORPNOTES (CALDTD 03/09/2015 3.000% 04/01/2025 12189LAV3 125,000.00 AA- A3 3/5/2021 3/9/2021 134,578.75 1.07 937.50 130,023.00 120,193.25 PACCAR FINANCIAL CORPCORPORATE NOTESDTD 04/07/2022 2.850% 04/07/2025 69371RR73 250,000.00 A+ A1 3/31/2022 4/7/2022 249,935.00 2.86 1,662.50 249,950.95 239,596.00 AMAZON.COM INC CORPORATE
NOTESDTD 04/13/2022 3.000% 04/13/2025
023135CE4 350,000.00 AA A1 4/11/2022 4/13/2022 349,443.50 3.06 2,275.00 349,577.04 337,648.50 BROWN-FORMAN CORP NOTES(CALLABLE)DTD 03/26/2018 3.500% 04/15/2025 115637AS9 115,000.00 A- A1 2/24/2022 2/28/2022 119,465.45 2.21 849.72 118,199.62 112,066.58 HOME DEPOT INC (CALLABLE)CORPORATE NOTEDTD 03/28/2022 2.700% 04/15/2025 437076CM2 40,000.00 A A2 3/24/2022 3/28/2022 39,930.00 2.76 228.00 39,947.53 38,270.64 BANK OF NY MELLON (CALLABLE)CORP NOTESDTD 04/24/2020 1.600% 04/24/2025 06406RAN7 125,000.00 A A1 3/10/2022 3/14/2022 121,988.75 2.41 372.22 122,764.74 116,146.00 BANK OF NY MELLON (CALLABLE)CORP NOTESDTD 04/24/2020 1.600% 04/24/2025 06406RAN7 135,000.00 A A1 3/9/2021 3/11/2021 138,202.20 1.01 402.00 136,766.21 125,437.68 BANK OF NY MELLON CORP(CALLABLE) CORP NDTD 04/26/2022 3.350% 04/25/2025 06406RBC0 250,000.00 A A1 4/19/2022 4/26/2022 249,965.00 3.36 1,535.42 249,972.99 242,134.00 CINTAS CORPORATION NO. 2 CORPNOTE (CALLDTD 05/03/2022 3.450% 05/01/2025 17252MAP5 70,000.00 A- A3 5/2/2022 5/4/2022 69,794.90 3.55 402.50 69,840.31 67,777.43 CITIGROUP INC (CALLABLE)CORPORATE NOTESDTD 05/04/2021 0.981% 05/01/2025 172967MX6 175,000.00 BBB+ A3 4/28/2021 5/4/2021 175,458.50 0.91 286.13 175,203.87 163,685.73 CINTAS CORPORATION NO. 2 CORPNOTE (CALLDTD 05/03/2022 3.450% 05/01/2025 17252MAP5 105,000.00 A- A3 4/26/2022 5/3/2022 104,976.90 3.46 603.75 104,982.03 101,666.15 35 87
Agenda Item # 4.
© PFM Asset Management LLC pfmam.com

CITY OF LOS ALTOS
For the Quarter Ended December 31, 2022
Portfolio Holdings
|
Security Type/DescriptionDated Date/Coupon/Maturity CUSIP Par S&P
Rating
Moody's
Rating
Settle
Date
Original
Cost
Trade
Date
YTM
at Cost
Accrued
Interest
Market
Value
Amortized
Cost
Corporate
CATERPILLAR FINL SERVICECORPORATE NOTESDTD 05/13/2022 3.400% 05/13/2025 14913R2V8 95,000.00 A A2 5/10/2022 5/13/2022 94,879.35 3.44 430.67 94,905.00 92,386.17 CATERPILLAR FINL SERVICECORPORATE NOTESDTD 05/13/2022 3.400% 05/13/2025 14913R2V8 30,000.00 A A2 5/10/2022 5/13/2022 29,997.00 3.40 136.00 29,997.64 29,174.58 GENERAL DYNAMICS CORP(CALLABLE) CORP NODTD 05/11/2018 3.500% 05/15/2025 369550BG2 165,000.00 A- A3 3/4/2022 3/8/2022 171,512.55 2.21 737.92 169,747.14 160,532.13 JPMORGAN CHASE & CO (CALLABLE)CORP NOTEDTD 06/01/2021 0.824% 06/01/2025 46647PCH7 345,000.00 A- A1 5/24/2021 6/1/2021 345,000.00 0.82 236.90 345,000.00 321,743.21 HONEYWELL INTL CORP NOTES(CALLABLE)DTD 05/18/2020 1.350% 06/01/2025 438516CB0 175,000.00 A A2 3/2/2022 3/4/2022 171,234.00 2.04 196.88 172,196.95 161,862.05 PNC BANK NA CORP NOTE(CALLABLE)DTD 06/01/2015 3.250% 06/01/2025 69353REQ7 250,000.00 A A2 8/23/2022 8/25/2022 245,665.00 3.92 677.08 246,218.13 241,013.50 HERSHEY CO CORP NOTES(CALLABLE)DTD 06/01/2020 0.900% 06/01/2025 427866BF4 130,000.00 A A1 2/23/2022 2/25/2022 124,784.40 2.18 97.50 126,140.81 118,729.13 TRUIST FINANCIAL CORP NOTES(CALLABLE)DTD 06/05/2018 3.700% 06/05/2025 05531FBE2 231,000.00 A- A3 2/7/2022 2/9/2022 242,822.58 2.10 617.28 239,559.11 224,278.36 NATIONAL AUSTRALIA BK/NYCORPORATE NOTESDTD 06/09/2022 3.500% 06/09/2025 63254ABD9 255,000.00 AA- Aa3 5/31/2022 6/9/2022 255,000.00 3.50 545.42 255,000.00 246,979.74 NATIONAL RURAL UTIL COOPCORPORATE NOTESDTD 05/04/2022 3.450% 06/15/2025 63743HFE7 60,000.00 A- A2 5/2/2022 5/4/2022 59,680.20 3.63 92.00 57,742.92 59,748.21 NATIONAL RURAL UTIL COOPCORPORATE NOTESDTD 05/04/2022 3.450% 06/15/2025 63743HFE7 40,000.00 A- A2 4/27/2022 5/4/2022 39,989.20 3.46 61.33 39,991.50 38,495.28 JP MORGAN CHASE CORP NOTES(CALLABLE)DTD 07/21/2015 3.900% 07/15/2025 46625HMN7 225,000.00 A- A1 3/10/2022 3/14/2022 232,026.75 2.91 4,046.25 230,201.54 219,512.48 36 88
Agenda Item # 4.
© PFM Asset Management LLC pfmam.com

CITY OF LOS ALTOS
For the Quarter Ended December 31, 2022
Portfolio Holdings
|
Security Type/DescriptionDated Date/Coupon/Maturity CUSIP Par S&P
Rating
Moody's
Rating
Settle
Date
Original
Cost
Trade
Date
YTM
at Cost
Accrued
Interest
Market
Value
Amortized
Cost
Corporate
MORGAN STANLEY CORP NOTESDTD 07/23/2015 4.000% 07/23/2025 6174468C6 85,000.00 A- A1 6/22/2022 6/24/2022 84,900.55 4.04 1,492.22 84,917.43 82,961.19 IBM CORP CORPORATE NOTESDTD 07/27/2022 4.000% 07/27/2025 459200KS9 375,000.00 A- A3 7/20/2022 7/27/2022 375,000.00 4.00 6,416.67 375,000.00 368,898.38 BANK OF AMERICA CORP NOTESDTD 07/30/2015 3.875% 08/01/2025 06051GFS3 225,000.00 A- A2 3/10/2022 3/14/2022 232,420.50 2.84 3,632.81 230,661.43 219,069.68 COLGATE-PALMOLIVE COCORPORATE NOTESDTD 08/09/2022 3.100% 08/15/2025 194162AM5 55,000.00 AA- Aa3 8/1/2022 8/9/2022 54,949.40 3.13 672.53 54,956.06 53,160.47 WALMART INC CORPORATE NOTESDTD 09/09/2022 3.900% 09/09/2025 931142EW9 225,000.00 AA Aa2 9/6/2022 9/9/2022 224,842.50 3.93 2,730.00 224,858.88 221,903.55 HOME DEPOT INC NOTES (CALLABLE)DTD 09/19/2022 4.000% 09/15/2025 437076CR1 55,000.00 A A2 9/12/2022 9/19/2022 54,980.20 4.01 623.33 54,982.09 54,186.83 UNITEDHEALTH GROUP INCCORPORATE NOTESDTD 10/28/2022 5.150% 10/15/2025 91324PEN8 80,000.00 A+ A3 10/25/2022 10/28/2022 79,992.80 5.15 721.00 79,993.23 80,752.24 LOCKHEED MARTIN CORP NOTES(CALLABLE)DTD 10/24/2022 4.950% 10/15/2025 539830BU2 80,000.00 A- A3 10/19/2022 10/24/2022 79,772.00 5.05 737.00 79,786.47 80,526.00 LOCKHEED MARTIN CORP NOTES(CALLABLE)DTD 10/24/2022 4.950% 10/15/2025 539830BU2 95,000.00 A- A3 11/1/2022 11/3/2022 95,046.55 4.93 875.19 95,043.93 95,624.63 PNC FINANCIAL SERVICES CORPNOTE (CALLABDTD 10/28/2022 5.671% 10/28/2025 693475BH7 110,000.00 A- A3 10/25/2022 10/28/2022 110,000.00 5.67 1,091.67 110,000.00 111,080.20 COMCAST CORP CORPORATE NOTESDTD 11/07/2022 5.250% 11/07/2025 20030NDZ1 110,000.00 A- A3 11/3/2022 11/7/2022 109,734.90 5.34 866.25 109,748.20 111,398.54 COMCAST CORP CORPORATE NOTESDTD 11/07/2022 5.250% 11/07/2025 20030NDZ1 65,000.00 A- A3 10/31/2022 11/7/2022 64,982.45 5.26 511.88 64,983.33 65,826.41 BRISTOL-MYERS SQUIBB COCORPORATE NOTESDTD 11/13/2020 0.750% 11/13/2025 110122DN5 125,000.00 A+ A2 2/22/2022 2/24/2022 118,435.00 2.23 125.00 119,938.47 112,219.75 LINDE INC/CT CORPORATE NOTES(CALLABLE)DTD 12/05/2022 4.700% 12/05/2025 53522KAB9 250,000.00 A A2 11/28/2022 12/5/2022 249,730.00 4.74 848.61 249,736.65 250,788.00 37 89
Agenda Item # 4.
© PFM Asset Management LLC pfmam.com

AUST & NZ BANKING GRP NY
CORPORATE NOTESDTD 12/08/2022 5.088% 12/08/2025
05254JAA8 250,000.00 AA- Aa3 11/29/2022 12/8/2022 250,000.00 5.09 812.67 250,000.00 250,945.00 STATE STREET CORP (CALLABLE)CORPORATE NDTD 02/07/2022 1.746% 02/06/2026 857477BR3 110,000.00 A A1 2/2/2022 2/7/2022 110,000.00 1.75 773.58 110,000.00 102,773.55 MORGAN STANLEY CORP NOTES(CALLABLE)DTD 02/18/2022 2.630% 02/18/2026 61747YEM3 290,000.00 A- A1 2/16/2022 2/18/2022 290,000.00 2.63 2,817.75 290,000.00 272,471.53 STATE STREET CORP NOTES(CALLABLE)DTD 10/29/2020 2.901% 03/30/2026 857477BM4 255,000.00 A A1 2/17/2022 2/22/2022 260,133.15 2.38 1,869.94 258,713.82 242,261.22 BANK OF NEW YORK MELLON CORPNOTES (CALLDTD 07/26/2022 4.414% 07/24/2026 06406RBJ5 170,000.00 A A1 7/20/2022 7/26/2022 170,554.20 4.32 3,230.80 170,473.65 167,269.80 BANK OF NEW YORK MELLON CORPNOTES (CALLDTD 07/26/2022 4.414% 07/24/2026 06406RBJ5 80,000.00 A A1 7/19/2022 7/26/2022 80,000.00 4.41 1,520.38 80,000.00 78,715.20 TRUIST FIN CORP NOTES (CALLABLE)DTD 07/28/2022 4.260% 07/28/2026 89788MAH5 65,000.00 A- A3 7/26/2022 7/28/2022 65,065.00 4.23 1,176.83 65,055.69 63,770.26 TRUIST FIN CORP NOTES (CALLABLE)DTD 07/28/2022 4.260% 07/28/2026 89788MAH5 65,000.00 A- A3 7/25/2022 7/28/2022 65,000.00 4.26 1,176.83 65,000.00 63,770.27 Security Type Sub-Total 13,814,000.00 13,946,890.55 2.38 92,952.74 13,874,477.00 13,286,430.67 Agency CMBS
FHMS K053 A2DTD 03/29/2016 2.995% 12/01/2025
3137BN6G4 250,000.00 AA+ Aaa 8/4/2022 8/9/2022 247,119.14 3.36 623.96 247,119.14 239,013.76 FNA 2016-M3 A2DTD 03/31/2016 2.702% 02/01/2026
3136ARTE8 202,549.48 AA+ Aaa 8/31/2022 9/6/2022 195,689.69 3.76 456.07 195,689.69 191,805.01 Security Type Sub-Total 452,549.48 442,808.83 3.54 1,080.03 442,808.83 430,818.77 38 90
Agenda Item # 4.
© PFM Asset Management LLC pfmam.com

CITY OF LOS ALTOS
For the Quarter Ended December 31, 2022
Portfolio Holdings
|
Security Type/DescriptionDated Date/Coupon/Maturity CUSIP Par S&P
Rating
Moody's
Rating
Settle
Date
Original
Cost
Trade
Date
YTM
at Cost
Accrued
Interest
Market
Value
Amortized
Cost
ABS
MBALT 2020-B A3DTD 09/23/2020 0.400% 11/15/2023
58769EAC2 13,451.51 AAA NR 9/15/2020 9/23/2020 13,450.83 0.40 2.39 13,451.32 13,426.45 BMWLT 2021-1 A3DTD 03/10/2021 0.290% 01/25/2024
05591RAC8 41,256.98 AAA Aaa 3/2/2021 3/10/2021 41,255.67 0.29 1.99 41,256.50 40,938.31 VZOT 2019-C A1ADTD 10/08/2019 1.940% 04/22/2024
92348AAA3 12,741.95 AAA NR 10/1/2019 10/8/2019 12,740.96 1.94 7.55 12,741.67 12,722.89 GMALT 2021-2 A3DTD 05/26/2021 0.340% 05/20/2024
380144AC9 150,866.82 AAA NR 5/18/2021 5/26/2021 150,843.13 0.35 15.67 150,855.84 149,031.86 NAROT 2019-C A3DTD 10/23/2019 1.930% 07/15/2024
65479JAD5 32,490.79 AAA Aaa 10/16/2019 10/23/2019 32,489.07 1.93 27.87 32,490.23 32,328.72 VZOT 2020-A A1ADTD 01/29/2020 1.850% 07/22/2024
92348TAA2 22,045.01 AAA Aaa 1/21/2020 1/29/2020 22,042.43 1.85 12.46 22,044.11 21,942.25 TAOT 2020-C A3DTD 07/27/2020 0.440% 10/15/2024
89237VAB5 73,822.57 AAA Aaa 7/21/2020 7/27/2020 73,816.89 0.44 14.44 73,820.16 72,668.30 HDMOT 2020-A A3DTD 01/29/2020 1.870% 10/15/2024
41284UAD6 9,817.15 AAA Aaa 1/21/2020 1/29/2020 9,815.01 1.87 8.16 9,816.34 9,801.09 HAROT 2020-3 A3DTD 09/29/2020 0.370% 10/18/2024
43813KAC6 90,284.29 AAA NR 9/22/2020 9/29/2020 90,271.04 0.37 12.06 90,278.42 88,296.28 BMWOT 2020-A A3DTD 07/15/2020 0.480% 10/25/2024
09661RAD3 35,478.96 AAA NR 7/8/2020 7/15/2020 35,476.28 0.48 2.84 35,477.82 34,978.14 HART 2020-B A3DTD 07/22/2020 0.480% 12/16/2024
44933FAC0 61,852.55 AAA NR 7/14/2020 7/22/2020 61,840.97 0.48 13.20 61,847.40 60,998.74 CARMX 2020-1 A3DTD 01/22/2020 1.890% 12/16/2024
14315XAC2 52,200.88 AAA NR 1/14/2020 1/22/2020 52,190.64 1.89 43.85 52,196.79 51,576.53 VZOT 2020-B ADTD 08/12/2020 0.470% 02/20/2025
92290BAA9 174,132.05 NR Aaa 8/4/2020 8/12/2020 174,095.48 0.47 25.01 174,114.77 171,445.38 GMCAR 2020-3 A3DTD 08/19/2020 0.450% 04/16/2025
362590AC5 95,049.09 NR Aaa 8/11/2020 8/19/2020 95,027.34 0.46 17.82 95,038.40 92,853.51 WOART 2020-B A3DTD 06/24/2020 0.630% 05/15/2025
98163WAC0 76,935.13 AAA NR 6/16/2020 6/24/2020 76,929.10 0.63 21.54 76,932.21 75,200.82 VWALT 2022-A A3DTD 06/14/2022 3.440% 07/21/2025
92868AAC9 100,000.00 NR Aaa 6/7/2022 6/14/2022 99,992.04 3.44 105.11 99,993.45 97,426.15 HART 2021-A A3DTD 04/28/2021 0.380% 09/15/2025
44933LAC7 107,455.87 AAA NR 4/20/2021 4/28/2021 107,444.56 0.38 18.15 107,448.89 103,927.70 39 91
Agenda Item # 4.
© PFM Asset Management LLC pfmam.com

CITY OF LOS ALTOS
For the Quarter Ended December 31, 2022
Portfolio Holdings
|
Security Type/DescriptionDated Date/Coupon/Maturity CUSIP Par S&P
Rating
Moody's
Rating
Settle
Date
Original
Cost
Trade
Date
YTM
at Cost
Accrued
Interest
Market
Value
Amortized
Cost
ABS
HAROT 2021-4 A3DTD 11/24/2021 0.880% 01/21/2026
43815GAC3 155,000.00 NR Aaa 11/16/2021 11/24/2021 154,967.33 0.89 37.89 154,976.00 147,101.96 CARMX 2021-2 A3DTD 04/21/2021 0.520% 02/17/2026
14314QAC8 120,404.71 AAA NR 4/13/2021 4/21/2021 120,378.76 0.52 27.83 120,387.89 115,892.07 HART 2021-C A3DTD 11/17/2021 0.740% 05/15/2026
44935FAD6 120,000.00 AAA NR 11/9/2021 11/17/2021 119,973.22 0.75 39.47 119,979.92 113,078.26 FORDO 2022-A A3DTD 01/24/2022 1.290% 06/15/2026
345286AC2 130,000.00 AAA NR 1/19/2022 1/24/2022 129,984.56 1.29 74.53 129,987.85 123,672.72 CARMX 2021-3 A3DTD 07/28/2021 0.550% 06/15/2026
14317DAC4 260,000.00 AAA Aaa 7/21/2021 7/28/2021 259,957.23 0.55 63.56 259,969.75 247,275.60 BMWOT 2022-A A3DTD 05/18/2022 3.210% 08/25/2026
05602RAD3 135,000.00 AAA Aaa 5/10/2022 5/18/2022 134,992.98 3.21 72.23 134,994.01 131,560.74 TAOT 2022-B A3DTD 04/13/2022 2.930% 09/15/2026
89238FAD5 145,000.00 AAA Aaa 4/7/2022 4/13/2022 144,996.61 2.93 188.82 144,997.16 140,279.54 COPAR 2021-1 A3DTD 10/27/2021 0.770% 09/15/2026
14044CAC6 160,000.00 AAA Aaa 10/19/2021 10/27/2021 159,996.98 0.77 54.76 159,997.71 150,513.60 DCENT 2021-A1 A1DTD 09/27/2021 0.580% 09/15/2026
254683CP8 155,000.00 AAA Aaa 9/20/2021 9/27/2021 154,966.81 0.58 39.96 154,975.24 144,270.08 GMCAR 2021-4 A3DTD 10/21/2021 0.680% 09/16/2026
362554AC1 100,000.00 AAA Aaa 10/13/2021 10/21/2021 99,997.45 0.68 28.33 99,998.07 94,155.83 WOART 2021-D A3DTD 11/03/2021 0.810% 10/15/2026
98163KAC6 190,000.00 AAA NR 10/26/2021 11/3/2021 189,974.12 0.81 68.40 189,980.19 180,644.31 HART 2022-A A3DTD 03/16/2022 2.220% 10/15/2026
448977AD0 140,000.00 AAA NR 3/9/2022 3/16/2022 139,994.61 2.22 138.13 139,995.55 133,341.05 ALLYA 2022-1 A3
DTD 05/18/2022 3.310% 11/15/2026
02008JAC0 245,000.00 AAA Aaa 5/10/2022 5/18/2022 244,952.57 3.31 360.42 244,959.16 238,224.06 COMET 2021-A3 A3DTD 11/30/2021 1.040% 11/15/2026
14041NFY2 305,000.00 AAA NR 11/18/2021 11/30/2021 304,957.97 1.04 140.98 304,967.18 284,781.86 GMCAR 2022-1 A3DTD 01/19/2022 1.260% 11/16/2026
380146AC4 110,000.00 AAA NR 1/11/2022 1/19/2022 109,990.44 1.26 57.75 109,992.32 104,098.03 HDMOT 2022-A A3DTD 04/20/2022 3.060% 02/15/2027
41284YAD8 255,000.00 AAA Aaa 4/12/2022 4/20/2022 254,957.54 3.06 346.80 254,963.71 247,884.28 CARMX 2022-2 A3DTD 04/28/2022 3.490% 02/16/2027
14317HAC5 190,000.00 AAA Aaa 4/21/2022 4/28/2022 189,971.10 3.49 294.71 189,975.18 184,774.24 40 92
Agenda Item # 4.
© PFM Asset Management LLC pfmam.com

CITY OF LOS ALTOS
For the Quarter Ended December 31, 2022
Portfolio Holdings
|
Security Type/DescriptionDated Date/Coupon/Maturity CUSIP Par S&P
Rating
Moody's
Rating
Settle
Date
Original
Cost
Trade
Date
YTM
at Cost
Accrued
Interest
Market
Value
Amortized
Cost
ABS
GMCAR 2022-2 A3DTD 04/13/2022 3.100% 02/16/2027
362585AC5 125,000.00 AAA Aaa 4/5/2022 4/13/2022 124,973.88 3.10 161.46 124,977.76 121,217.85 COMET 2022-A1 A1DTD 03/30/2022 2.800% 03/15/2027
14041NFZ9 250,000.00 AAA NR 3/23/2022 3/30/2022 249,981.15 2.80 311.11 249,984.03 239,742.90 TAOT 2022-C A3DTD 08/16/2022 3.760% 04/15/2027
89231CAD9 105,000.00 AAA NR 8/8/2022 8/16/2022 104,982.45 3.76 175.47 104,983.87 101,992.26 CARMX 2022-3 A3DTD 07/20/2022 3.970% 04/15/2027
14318MAD1 265,000.00 AAA NR 7/12/2022 7/20/2022 264,993.75 3.97 467.58 264,994.35 257,379.40 GMCAR 2022-3 A3DTD 07/13/2022 3.640% 04/16/2027
36265WAD5 155,000.00 NR Aaa 7/6/2022 7/13/2022 154,998.93 3.64 235.08 154,999.04 151,532.93 COMET 2022-A2 ADTD 06/14/2022 3.490% 05/15/2027
14041NGA3 335,000.00 AAA NR 6/6/2022 6/14/2022 334,946.47 3.49 519.62 334,952.46 325,803.41 ALLYA 2022-2 A3
DTD 10/12/2022 4.760% 05/17/2027
02008MAC3 450,000.00 AAA Aaa 10/4/2022 10/12/2022 449,994.42 4.76 952.00 449,994.69 447,258.60 DCENT 2022-A2 ADTD 05/26/2022 3.320% 05/17/2027
254683CS2 270,000.00 NR Aaa 5/19/2022 5/26/2022 269,978.05 3.32 398.40 269,980.71 260,403.88 AMXCA 2022-2 A
DTD 05/24/2022 3.390% 05/17/2027
02582JJT8 370,000.00 AAA NR 5/17/2022 5/24/2022 369,918.16 3.39 557.47 369,928.15 359,175.98 NAROT 2022-B A3DTD 09/28/2022 4.460% 05/17/2027
65480JAC4 235,000.00 AAA Aaa 9/20/2022 9/28/2022 234,951.38 4.46 465.82 234,954.11 232,137.94 HART 2022-C A3DTD 11/09/2022 5.390% 06/15/2027
44933DAD3 325,000.00 AAA NR 11/1/2022 11/9/2022 324,998.44 5.39 778.56 324,998.49 328,555.50 DCENT 2022-A3 A3DTD 08/09/2022 3.560% 07/15/2027
254683CW3 300,000.00 AAA Aaa 8/2/2022 8/9/2022 299,962.77 3.56 474.67 299,965.77 290,767.14 MBART 2022-1 A3DTD 11/22/2022 5.210% 08/16/2027
58768PAC8 390,000.00 AAA Aaa 11/15/2022 11/22/2022 389,922.86 5.21 903.07 389,924.65 393,186.22 CARMX 2022-4 A3DTD 10/31/2022 5.340% 08/16/2027
14318UAD3 295,000.00 AAA NR 10/26/2022 10/31/2022 294,930.82 5.35 700.13 294,933.27 297,391.57 TAOT 2022-D A3DTD 11/08/2022 5.300% 09/15/2027
89239HAD0 110,000.00 NR Aaa 11/1/2022 11/8/2022 109,989.14 5.30 259.11 109,989.47 111,322.63 41 93
Agenda Item # 4.
© PFM Asset Management LLC pfmam.com

1.83 1.83%
Total Investments $48,040,702.04
42 94
Agenda Item # 4.
© PFM Asset Management LLC pfmam.com

CITY OF LOS ALTOS
For the Quarter Ended December 31, 2022
Portfolio Activity
|
Quarterly Portfolio Transactions
Trade
Date
Settle
Date Par ($) CUSIP
Maturity
Date
Transact
Coupon Amount ($)
Yield
at Market
Realized
Security Description G/L (BV)
BUY10/4/2022 10/12/2022 450,000.00 02008MAC3 ALLYA 2022-2 A3 4.76% 5/17/2027 449,994.42 4.76%10/6/2022 10/11/2022 600,000.00 91282CFK2 US TREASURY N/B NOTES 3.50% 9/15/2025 589,484.85 4.23%10/19/2022 10/24/2022 80,000.00 539830BU2 LOCKHEED MARTIN CORP NOTES (CALLABLE) 4.95% 10/15/2025 79,772.00 5.05%10/25/2022 10/28/2022 80,000.00 91324PEN8 UNITEDHEALTH GROUP INC CORPORATE NOTES 5.15% 10/15/2025 79,992.80 5.15%10/25/2022 10/28/2022 110,000.00 693475BH7 PNC FINANCIAL SERVICES CORP NOTE (CALLAB 5.67% 10/28/2025 110,000.00 5.67%10/26/2022 10/31/2022 295,000.00 14318UAD3 CARMX 2022-4 A3 5.34% 8/16/2027 294,930.82 5.35%10/27/2022 10/31/2022 500,000.00 89115B6K1 TORONTO DOMINION BANK NY CERT DEPOS 5.60% 10/27/2025 500,000.00 5.58%10/27/2022 11/3/2022 120,000.00 02582JJX9 AMXCA 2022-4 A 4.95% 10/15/2027 119,994.05 4.95%10/28/2022 11/2/2022 210,000.00 438516CH7 HONEYWELL INTERNATIONAL CORPORATE NOTES 4.85% 11/1/2024 209,964.30 4.86%10/31/2022 11/7/2022 65,000.00 20030NDZ1 COMCAST CORP CORPORATE NOTES 5.25% 11/7/2025 64,982.45 5.26%11/1/2022 11/8/2022 110,000.00 89239HAD0 TAOT 2022-D A3 5.30% 9/15/2027 109,989.14 5.30%11/1/2022 11/9/2022 325,000.00 44933DAD3 HART 2022-C A3 5.39% 6/15/2027 324,998.44 5.39%11/1/2022 11/3/2022 95,000.00 539830BU2 LOCKHEED MARTIN CORP NOTES (CALLABLE) 4.95% 10/15/2025 95,164.11 4.93%11/2/2022 11/3/2022 500,000.00 65558UYF3 NORDEA BANK ABP NEW YORK CERT DEPOS 5.53% 11/3/2025 500,000.00 5.53%11/3/2022 11/7/2022 110,000.00 20030NDZ1 COMCAST CORP CORPORATE NOTES 5.25% 11/7/2025 109,734.90 5.34%11/15/2022 11/18/2022 55,000.00 882508BR4 TEXAS INSTRUMENTS INC CORPORATE NOTES 4.70% 11/18/2024 54,975.25 4.72%11/15/2022 11/22/2022 390,000.00 58768PAC8 MBART 2022-1 A3 5.21% 8/16/2027 389,922.86 5.21% 43 95
Agenda Item # 4.
© PFM Asset Management LLC pfmam.com

CITY OF LOS ALTOS
For the Quarter Ended December 31, 2022
Portfolio Activity
|
Quarterly Portfolio Transactions
Trade
Date
Settle
Date Par ($) CUSIP
Maturity
Date
Transact
Coupon Amount ($)
Yield
at Market
Realized
Security Description G/L (BV)
BUY11/28/2022 12/5/2022 250,000.00 53522KAB9 LINDE INC/CT CORPORATE NOTES (CALLABLE) 4.70% 12/5/2025 249,730.00 4.74%11/29/2022 12/8/2022 250,000.00 05254JAA8 AUST & NZ BANKING GRP NY CORPORATE NOTES 5.08% 12/8/2025 250,000.00 5.09%12/16/2022 12/16/2022 1,375,000.00 91282CFW6 US TREASURY N/B NOTES 4.50% 11/15/2025 1,399,204.94 3.99% Total BUY 5,970,000.00 5,982,835.33 0.00
INTEREST10/1/2022 10/1/2022 125,000.00 12189LAV3 BURLINGTN NORTH SANTA FE CORP NOTES (CAL 3.00% 4/1/2025 1,875.0010/1/2022 10/25/2022 250,000.00 3137BN6G4 FHMS K053 A2 2.99% 12/1/2025 623.9610/1/2022 10/25/2022 1,236.72 3137FQ3V3 FHMS KJ27 A1 2.09% 7/1/2024 2.1610/1/2022 10/25/2022 7,400.02 3137FKK39 FHMS KP05 A 3.20% 7/1/2023 19.7510/1/2022 10/25/2022 224,625.81 3136ARTE8 FNA 2016-M3 A2 2.70% 2/1/2026 505.7810/1/2022 10/25/2022 78,986.88 3136AEGQ4 FNA 2013-M7 A2 2.28% 12/1/2022 150.0810/1/2022 10/25/2022 171,253.93 3137B1BS0 FHLMC MULTIFAMILY STRUCTURED P 2.51% 11/1/2022 358.2110/3/2022 10/3/2022 MONEY0002 MONEY MARKET FUND 192.5010/7/2022 10/7/2022 250,000.00 69371RR73 PACCAR FINANCIAL CORP CORPORATE NOTES 2.85% 4/7/2025 3,562.5010/13/2022 10/13/2022 350,000.00 023135CE4 AMAZON.COM INC CORPORATE NOTES 3.00% 4/13/2025 5,250.0010/15/2022 10/15/2022 71,262.60 14315XAC2 CARMX 2020-1 A3 1.89% 12/16/2024 112.2410/15/2022 10/15/2022 260,000.00 14317DAC4 CARMX 2021-3 A3 0.55% 6/15/2026 119.17 44 96
Agenda Item # 4.
© PFM Asset Management LLC pfmam.com

CITY OF LOS ALTOS
For the Quarter Ended December 31, 2022
Portfolio Activity
|
Quarterly Portfolio Transactions
Trade
Date
Settle
Date Par ($) CUSIP
Maturity
Date
Transact
Coupon Amount ($)
Yield
at Market
Realized
Security Description G/L (BV)
INTEREST10/15/2022 10/15/2022 145,000.00 89238FAD5 TAOT 2022-B A3 2.93% 9/15/2026 354.0410/15/2022 10/15/2022 89,659.80 44933FAC0 HART 2020-B A3 0.48% 12/16/2024 35.8610/15/2022 10/15/2022 250,000.00 14041NFZ9 COMET 2022-A1 A1 2.80% 3/15/2027 583.3310/15/2022 10/15/2022 305,000.00 14041NFY2 COMET 2021-A3 A3 1.04% 11/15/2026 264.3310/15/2022 10/15/2022 115,000.00 44933LAC7 HART 2021-A A3 0.38% 9/15/2025 36.4210/15/2022 10/15/2022 102,143.93 89237VAB5 TAOT 2020-C A3 0.44% 10/15/2024 37.4510/15/2022 10/15/2022 15,523.79 14316LAC7 CARMX 2019-2 A3 2.68% 3/15/2024 34.6710/15/2022 10/15/2022 60,974.84 65479JAD5 NAROT 2019-C A3 1.93% 7/15/2024 98.0710/15/2022 10/15/2022 270,000.00 254683CS2 DCENT 2022-A2 A 3.32% 5/17/2027 747.0010/15/2022 10/15/2022 190,000.00 14317HAC5 CARMX 2022-2 A3 3.49% 2/16/2027 552.5810/15/2022 10/15/2022 200,000.00 20030NCR0 COMCAST CORP (CALLABLE) CORPORATE NOTES 3.70% 4/15/2024 3,700.0010/15/2022 10/15/2022 190,000.00 98163KAC6 WOART 2021-D A3 0.81% 10/15/2026 128.2510/15/2022 10/15/2022 22,944.13 41284UAD6 HDMOT 2020-A A3 1.87% 10/15/2024 35.7510/15/2022 10/15/2022 140,000.00 448977AD0 HART 2022-A A3 2.22% 10/15/2026 259.0010/15/2022 10/15/2022 130,000.00 345286AC2 FORDO 2022-A A3 1.29% 6/15/2026 139.7510/15/2022 10/15/2022 37,953.27 58769EAC2 MBALT 2020-B A3 0.40% 11/15/2023 12.6510/15/2022 10/15/2022 160,000.00 14044CAC6 COPAR 2021-1 A3 0.77% 9/15/2026 102.67 45 97
Agenda Item # 4.
© PFM Asset Management LLC pfmam.com

CITY OF LOS ALTOS
For the Quarter Ended December 31, 2022
Portfolio Activity
|
Quarterly Portfolio Transactions
Trade
Date
Settle
Date Par ($) CUSIP
Maturity
Date
Transact
Coupon Amount ($)
Yield
at Market
Realized
Security Description G/L (BV)
INTEREST10/15/2022 10/15/2022 370,000.00 02582JJT8 AMXCA 2022-2 A 3.39% 5/17/2027 1,045.2510/15/2022 10/15/2022 245,000.00 02008JAC0 ALLYA 2022-1 A3 3.31% 11/15/2026 675.7910/15/2022 10/15/2022 115,000.00 115637AS9 BROWN-FORMAN CORP NOTES (CALLABLE) 3.50% 4/15/2025 2,012.5010/15/2022 10/15/2022 155,000.00 254683CP8 DCENT 2021-A1 A1 0.58% 9/15/2026 74.9210/15/2022 10/15/2022 99,015.13 98163WAC0 WOART 2020-B A3 0.63% 5/15/2025 51.9810/15/2022 10/15/2022 300,000.00 254683CW3 DCENT 2022-A3 A3 3.56% 7/15/2027 890.0010/15/2022 10/15/2022 40,000.00 437076CM2 HOME DEPOT INC (CALLABLE) CORPORATE NOTE 2.70% 4/15/2025 591.0010/15/2022 10/15/2022 120,000.00 44935FAD6 HART 2021-C A3 0.74% 5/15/2026 74.0010/15/2022 10/15/2022 235,000.00 65480JAC4 NAROT 2022-B A3 4.46% 5/17/2027 494.9410/15/2022 10/15/2022 125,000.00 14314QAC8 CARMX 2021-2 A3 0.52% 2/17/2026 54.1710/15/2022 10/15/2022 335,000.00 14041NGA3 COMET 2022-A2 A 3.49% 5/15/2027 974.2910/15/2022 10/15/2022 105,000.00 89231CAD9 TAOT 2022-C A3 3.76% 4/15/2027 329.0010/15/2022 10/15/2022 255,000.00 41284YAD8 HDMOT 2022-A A3 3.06% 2/15/2027 650.2510/15/2022 10/15/2022 265,000.00 14318MAD1 CARMX 2022-3 A3 3.97% 4/15/2027 876.7110/16/2022 10/16/2022 100,000.00 362554AC1 GMCAR 2021-4 A3 0.68% 9/16/2026 56.6710/16/2022 10/16/2022 125,000.00 362585AC5 GMCAR 2022-2 A3 3.10% 2/16/2027 322.9210/16/2022 10/16/2022 110,000.00 380146AC4 GMCAR 2022-1 A3 1.26% 11/16/2026 115.50 46 98
Agenda Item # 4.
© PFM Asset Management LLC pfmam.com

CITY OF LOS ALTOS
For the Quarter Ended December 31, 2022
Portfolio Activity
|
Quarterly Portfolio Transactions
Trade
Date
Settle
Date Par ($) CUSIP
Maturity
Date
Transact
Coupon Amount ($)
Yield
at Market
Realized
Security Description G/L (BV)
INTEREST10/16/2022 10/16/2022 121,781.81 362590AC5 GMCAR 2020-3 A3 0.45% 4/16/2025 45.6710/16/2022 10/16/2022 155,000.00 36265WAD5 GMCAR 2022-3 A3 3.64% 4/16/2027 470.1710/18/2022 10/18/2022 118,702.47 43813KAC6 HAROT 2020-3 A3 0.37% 10/18/2024 36.6010/20/2022 10/20/2022 47,189.61 92348TAA2 VZOT 2020-A A1A 1.85% 7/22/2024 72.7510/20/2022 10/20/2022 18,279.21 362569AC9 GMALT 2020-3 A3 0.45% 8/21/2023 6.8510/20/2022 10/20/2022 61,763.72 92348AAA3 VZOT 2019-C A1A 1.94% 4/22/2024 99.8510/20/2022 10/20/2022 272,780.64 92290BAA9 VZOT 2020-B A 0.47% 2/20/2025 106.8410/20/2022 10/20/2022 100,000.00 92868AAC9 VWALT 2022-A A3 3.44% 7/21/2025 286.6710/20/2022 10/20/2022 209,998.35 380144AC9 GMALT 2021-2 A3 0.34% 5/20/2024 59.5010/21/2022 10/21/2022 155,000.00 43815GAC3 HAROT 2021-4 A3 0.88% 1/21/2026 113.6710/24/2022 10/24/2022 260,000.00 06406RAN7 BANK OF NY MELLON (CALLABLE) CORP NOTES 1.60% 4/24/2025 2,080.0010/24/2022 10/24/2022 275,000.00 06051GJH3 BANK OF AMERICA CORP (CALLABLE) CORPORAT 0.81% 10/24/2024 1,113.7510/25/2022 10/25/2022 52,073.92 09661RAD3 BMWOT 2020-A A3 0.48% 10/25/2024 20.8310/25/2022 10/25/2022 135,000.00 05602RAD3 BMWOT 2022-A A3 3.21% 8/25/2026 361.1310/25/2022 10/25/2022 71,035.66 05591RAC8 BMWLT 2021-1 A3 0.29% 1/25/2024 17.1710/25/2022 10/25/2022 250,000.00 06406RBC0 BANK OF NY MELLON CORP (CALLABLE) CORP N 3.35% 4/25/2025 4,164.2410/31/2022 10/31/2022 1,650,000.00 912828YM6 US TREASURY NOTES 1.50% 10/31/2024 12,375.00 47 99
Agenda Item # 4.
© PFM Asset Management LLC pfmam.com

CITY OF LOS ALTOS
For the Quarter Ended December 31, 2022
Portfolio Activity
|
Quarterly Portfolio Transactions
Trade
Date
Settle
Date Par ($) CUSIP
Maturity
Date
Transact
Coupon Amount ($)
Yield
at Market
Realized
Security Description G/L (BV)
INTEREST10/31/2022 10/31/2022 1,425,000.00 91282CDD0 US TREASURY N/B NOTES 0.37% 10/31/2023 2,671.8810/31/2022 10/31/2022 575,000.00 912828X70 US TREASURY NOTES 2.00% 4/30/2024 5,750.0011/1/2022 11/25/2022 7,378.51 3137FKK39 FHMS KP05 A 3.20% 7/1/2023 19.6911/1/2022 11/25/2022 1,140.59 3137FQ3V3 FHMS KJ27 A1 2.09% 7/1/2024 1.9911/1/2022 11/25/2022 47,467.17 3136AEGQ4 FNA 2013-M7 A2 2.28% 12/1/2022 90.1911/1/2022 11/25/2022 250,000.00 3137BN6G4 FHMS K053 A2 2.99% 12/1/2025 623.9611/1/2022 11/25/2022 224,376.25 3136ARTE8 FNA 2016-M3 A2 2.70% 2/1/2026 505.2211/1/2022 11/1/2022 175,000.00 172967MX6 CITIGROUP INC (CALLABLE) CORPORATE NOTES 0.98% 5/1/2025 858.3811/1/2022 11/1/2022 175,000.00 17252MAP5 CINTAS CORPORATION NO. 2 CORP NOTE (CALL 3.45% 5/1/2025 2,985.2111/1/2022 11/1/2022 MONEY0002 MONEY MARKET FUND 276.1111/8/2022 11/8/2022 500,000.00 3130APQ81 FEDERAL HOME LOAN BANK NOTES (CALLABLE) 1.00% 11/8/2024 2,500.0011/12/2022 11/12/2022 225,000.00 023135BW5 AMAZON.COM INC CORPORATE NOTES 0.45% 5/12/2024 506.2511/13/2022 11/13/2022 125,000.00 110122DN5 BRISTOL-MYERS SQUIBB CO CORPORATE NOTES 0.75% 11/13/2025 468.7511/13/2022 11/13/2022 125,000.00 14913R2V8 CATERPILLAR FINL SERVICE CORPORATE NOTES 3.40% 5/13/2025 2,125.0011/15/2022 11/15/2022 155,000.00 254683CP8 DCENT 2021-A1 A1 0.58% 9/15/2026 74.9211/15/2022 11/15/2022 265,000.00 14318MAD1 CARMX 2022-3 A3 3.97% 4/15/2027 876.7111/15/2022 11/15/2022 300,000.00 254683CW3 DCENT 2022-A3 A3 3.56% 7/15/2027 890.00 48 100
Agenda Item # 4.
© PFM Asset Management LLC pfmam.com

CITY OF LOS ALTOS
For the Quarter Ended December 31, 2022
Portfolio Activity
|
Quarterly Portfolio Transactions
Trade
Date
Settle
Date Par ($) CUSIP
Maturity
Date
Transact
Coupon Amount ($)
Yield
at Market
Realized
Security Description G/L (BV)
INTEREST11/15/2022 11/15/2022 50,928.15 65479JAD5 NAROT 2019-C A3 1.93% 7/15/2024 81.9111/15/2022 11/15/2022 305,000.00 14041NFY2 COMET 2021-A3 A3 1.04% 11/15/2026 264.3311/15/2022 11/15/2022 255,000.00 41284YAD8 HDMOT 2022-A A3 3.06% 2/15/2027 650.2511/15/2022 11/15/2022 105,000.00 89231CAD9 TAOT 2022-C A3 3.76% 4/15/2027 329.0011/15/2022 11/15/2022 125,000.00 14314QAC8 CARMX 2021-2 A3 0.52% 2/17/2026 54.1711/15/2022 11/15/2022 120,000.00 44935FAD6 HART 2021-C A3 0.74% 5/15/2026 74.0011/15/2022 11/15/2022 270,000.00 254683CS2 DCENT 2022-A2 A 3.32% 5/17/2027 747.0011/15/2022 11/15/2022 115,000.00 44933LAC7 HART 2021-A A3 0.38% 9/15/2025 36.4211/15/2022 11/15/2022 190,000.00 91324PEB4 UNITEDHEALTH GROUP INC (CALLABLE) CORP N 0.55% 5/15/2024 522.5011/15/2022 11/15/2022 79,773.68 44933FAC0 HART 2020-B A3 0.48% 12/16/2024 31.9111/15/2022 11/15/2022 92,287.62 89237VAB5 TAOT 2020-C A3 0.44% 10/15/2024 33.8411/15/2022 11/15/2022 190,000.00 98163KAC6 WOART 2021-D A3 0.81% 10/15/2026 128.2511/15/2022 11/15/2022 165,000.00 369550BG2 GENERAL DYNAMICS CORP (CALLABLE) CORP NO 3.50% 5/15/2025 2,887.5011/15/2022 11/15/2022 91,320.37 98163WAC0 WOART 2020-B A3 0.63% 5/15/2025 47.9411/15/2022 11/15/2022 64,425.43 14315XAC2 CARMX 2020-1 A3 1.89% 12/16/2024 101.4711/15/2022 11/15/2022 145,000.00 89238FAD5 TAOT 2022-B A3 2.93% 9/15/2026 354.0411/15/2022 11/15/2022 250,000.00 14041NFZ9 COMET 2022-A1 A1 2.80% 3/15/2027 583.33 49 101
Agenda Item # 4.
© PFM Asset Management LLC pfmam.com

CITY OF LOS ALTOS
For the Quarter Ended December 31, 2022
Portfolio Activity
|
Quarterly Portfolio Transactions
Trade
Date
Settle
Date Par ($) CUSIP
Maturity
Date
Transact
Coupon Amount ($)
Yield
at Market
Realized
Security Description G/L (BV)
INTEREST11/15/2022 11/15/2022 140,000.00 448977AD0 HART 2022-A A3 2.22% 10/15/2026 259.0011/15/2022 11/15/2022 235,000.00 65480JAC4 NAROT 2022-B A3 4.46% 5/17/2027 873.4211/15/2022 11/15/2022 225,000.00 172967MR9 CITIGROUP INC (CALLABLE) CORPORATE NOTES 1.67% 5/15/2024 1,887.7511/15/2022 11/15/2022 8,875.91 14316LAC7 CARMX 2019-2 A3 2.68% 3/15/2024 19.8211/15/2022 11/15/2022 260,000.00 14317DAC4 CARMX 2021-3 A3 0.55% 6/15/2026 119.1711/15/2022 11/15/2022 450,000.00 02008MAC3 ALLYA 2022-2 A3 4.76% 5/17/2027 1,963.5011/15/2022 11/15/2022 2,015,000.00 91282CAW1 US TREASURY NOTES 0.25% 11/15/2023 2,518.7511/15/2022 11/15/2022 335,000.00 14041NGA3 COMET 2022-A2 A 3.49% 5/15/2027 974.2911/15/2022 11/15/2022 130,000.00 345286AC2 FORDO 2022-A A3 1.29% 6/15/2026 139.7511/15/2022 11/15/2022 245,000.00 02008JAC0 ALLYA 2022-1 A3 3.31% 11/15/2026 675.7911/15/2022 11/15/2022 160,000.00 14044CAC6 COPAR 2021-1 A3 0.77% 9/15/2026 102.6711/15/2022 11/15/2022 30,137.60 58769EAC2 MBALT 2020-B A3 0.40% 11/15/2023 10.0511/15/2022 11/15/2022 190,000.00 14317HAC5 CARMX 2022-2 A3 3.49% 2/16/2027 552.5811/15/2022 11/15/2022 17,972.50 41284UAD6 HDMOT 2020-A A3 1.87% 10/15/2024 28.0111/15/2022 11/15/2022 370,000.00 02582JJT8 AMXCA 2022-2 A 3.39% 5/17/2027 1,045.2511/15/2022 11/15/2022 295,000.00 14318UAD3 CARMX 2022-4 A3 5.34% 8/16/2027 656.3811/16/2022 11/16/2022 100,000.00 362554AC1 GMCAR 2021-4 A3 0.68% 9/16/2026 56.67 50 102
Agenda Item # 4.
© PFM Asset Management LLC pfmam.com

CITY OF LOS ALTOS
For the Quarter Ended December 31, 2022
Portfolio Activity
|
Quarterly Portfolio Transactions
Trade
Date
Settle
Date Par ($) CUSIP
Maturity
Date
Transact
Coupon Amount ($)
Yield
at Market
Realized
Security Description G/L (BV)
INTEREST11/16/2022 11/16/2022 112,082.71 362590AC5 GMCAR 2020-3 A3 0.45% 4/16/2025 42.0311/16/2022 11/16/2022 110,000.00 380146AC4 GMCAR 2022-1 A3 1.26% 11/16/2026 115.5011/16/2022 11/16/2022 125,000.00 362585AC5 GMCAR 2022-2 A3 3.10% 2/16/2027 322.9211/16/2022 11/16/2022 155,000.00 36265WAD5 GMCAR 2022-3 A3 3.64% 4/16/2027 470.1711/17/2022 11/17/2022 275,000.00 14913R2L0 CATERPILLAR FINL SERVICE CORPORATE NOTES 0.45% 5/17/2024 618.7511/18/2022 11/18/2022 108,720.90 43813KAC6 HAROT 2020-3 A3 0.37% 10/18/2024 33.5211/20/2022 11/20/2022 189,603.81 380144AC9 GMALT 2021-2 A3 0.34% 5/20/2024 53.7211/20/2022 11/20/2022 236,113.15 92290BAA9 VZOT 2020-B A 0.47% 2/20/2025 92.4811/20/2022 11/20/2022 38,217.74 92348TAA2 VZOT 2020-A A1A 1.85% 7/22/2024 58.9211/20/2022 11/20/2022 5,081.25 362569AC9 GMALT 2020-3 A3 0.45% 8/21/2023 1.9111/20/2022 11/20/2022 43,738.49 92348AAA3 VZOT 2019-C A1A 1.94% 4/22/2024 70.7111/20/2022 11/20/2022 100,000.00 92868AAC9 VWALT 2022-A A3 3.44% 7/21/2025 286.6711/21/2022 11/21/2022 155,000.00 43815GAC3 HAROT 2021-4 A3 0.88% 1/21/2026 113.6711/24/2022 11/24/2022 375,000.00 40428HTA0 HSBC USA INC CORPORATE NOTES 3.75% 5/24/2024 7,031.2511/24/2022 11/24/2022 425,000.00 459058JM6 INTL BK RECON & DEVELOP NOTES 0.25% 11/24/2023 531.2511/25/2022 11/25/2022 60,391.23 05591RAC8 BMWLT 2021-1 A3 0.29% 1/25/2024 14.5911/25/2022 11/25/2022 135,000.00 05602RAD3 BMWOT 2022-A A3 3.21% 8/25/2026 361.13 51 103
Agenda Item # 4.
© PFM Asset Management LLC pfmam.com

CITY OF LOS ALTOS
For the Quarter Ended December 31, 2022
Portfolio Activity
|
Quarterly Portfolio Transactions
Trade
Date
Settle
Date Par ($) CUSIP
Maturity
Date
Transact
Coupon Amount ($)
Yield
at Market
Realized
Security Description G/L (BV)
INTEREST11/25/2022 11/25/2022 46,193.06 09661RAD3 BMWOT 2020-A A3 0.48% 10/25/2024 18.4811/28/2022 11/28/2022 290,000.00 04636NAC7 ASTRAZENECA FINANCE LLC (CALLABLE) CORP 0.70% 5/28/2024 1,015.0011/30/2022 11/30/2022 1,550,000.00 912828YV6 US TREASURY NOTES 1.50% 11/30/2024 11,625.0011/30/2022 11/30/2022 600,000.00 91282CDM0 US TREASURY N/B NOTES 0.50% 11/30/2023 1,500.0012/1/2022 12/25/2022 210,590.23 3136ARTE8 FNA 2016-M3 A2 2.70% 2/1/2026 474.1812/1/2022 12/25/2022 250,000.00 3137BN6G4 FHMS K053 A2 2.99% 12/1/2025 623.9612/1/2022 12/25/2022 7,358.16 3137FKK39 FHMS KP05 A 3.20% 7/1/2023 19.6412/1/2022 12/1/2022 345,000.00 46647PCH7 JPMORGAN CHASE & CO (CALLABLE) CORP NOTE 0.82% 6/1/2025 1,421.4012/1/2022 12/1/2022 MONEY0002 MONEY MARKET FUND 189.9712/1/2022 12/1/2022 130,000.00 427866BF4 HERSHEY CO CORP NOTES (CALLABLE) 0.90% 6/1/2025 585.0012/1/2022 12/1/2022 175,000.00 438516CB0 HONEYWELL INTL CORP NOTES (CALLABLE) 1.35% 6/1/2025 1,181.2512/1/2022 12/1/2022 250,000.00 69353REQ7 PNC BANK NA CORP NOTE (CALLABLE) 3.25% 6/1/2025 4,062.5012/3/2022 12/3/2022 175,000.00 440452AG5 HORMEL FOODS CORP NOTES (CALLABLE) 0.65% 6/3/2024 568.7512/4/2022 12/4/2022 900,000.00 3137EAFA2 FREDDIE MAC NOTES 0.25% 12/4/2023 1,125.0012/5/2022 12/5/2022 231,000.00 05531FBE2 TRUIST FINANCIAL CORP NOTES (CALLABLE) 3.70% 6/5/2025 4,273.5012/7/2022 12/7/2022 80,000.00 24422EVQ9 JOHN DEERE CAPITAL CORP CORPORATE NOTES 0.45% 6/7/2024 180.0012/9/2022 12/9/2022 255,000.00 63254ABD9 NATIONAL AUSTRALIA BK/NY CORPORATE NOTES 3.50% 6/9/2025 4,462.50 52 104
Agenda Item # 4.
© PFM Asset Management LLC pfmam.com

CITY OF LOS ALTOS
For the Quarter Ended December 31, 2022
Portfolio Activity
|
Quarterly Portfolio Transactions
Trade
Date
Settle
Date Par ($) CUSIP
Maturity
Date
Transact
Coupon Amount ($)
Yield
at Market
Realized
Security Description G/L (BV)
INTEREST12/15/2022 12/15/2022 270,000.00 254683CS2 DCENT 2022-A2 A 3.32% 5/17/2027 747.0012/15/2022 12/15/2022 235,000.00 65480JAC4 NAROT 2022-B A3 4.46% 5/17/2027 873.4212/15/2022 12/15/2022 22,208.27 58769EAC2 MBALT 2020-B A3 0.40% 11/15/2023 7.4012/15/2022 12/15/2022 160,000.00 14044CAC6 COPAR 2021-1 A3 0.77% 9/15/2026 102.6712/15/2022 12/15/2022 260,000.00 14317DAC4 CARMX 2021-3 A3 0.55% 6/15/2026 119.1712/15/2022 12/15/2022 145,000.00 89238FAD5 TAOT 2022-B A3 2.93% 9/15/2026 354.0412/15/2022 12/15/2022 325,000.00 44933DAD3 HART 2022-C A3 5.39% 6/15/2027 1,751.7512/15/2022 12/15/2022 255,000.00 41284YAD8 HDMOT 2022-A A3 3.06% 2/15/2027 650.2512/15/2022 12/15/2022 265,000.00 14318MAD1 CARMX 2022-3 A3 3.97% 4/15/2027 876.7112/15/2022 12/15/2022 120,000.00 02582JJX9 AMXCA 2022-4 A 4.95% 10/15/2027 693.0012/15/2022 12/15/2022 83,931.29 98163WAC0 WOART 2020-B A3 0.63% 5/15/2025 44.0612/15/2022 12/15/2022 300,000.00 254683CW3 DCENT 2022-A3 A3 3.56% 7/15/2027 890.0012/15/2022 12/15/2022 41,628.52 65479JAD5 NAROT 2019-C A3 1.93% 7/15/2024 66.9512/15/2022 12/15/2022 114,193.79 44933LAC7 HART 2021-A A3 0.38% 9/15/2025 36.1612/15/2022 12/15/2022 190,000.00 98163KAC6 WOART 2021-D A3 0.81% 10/15/2026 128.2512/15/2022 12/15/2022 100,000.00 63743HFE7 NATIONAL RURAL UTIL COOP CORPORATE NOTES 3.45% 6/15/2025 2,117.9212/15/2022 12/15/2022 2,142,000.00 91282CCG4 US TREASURY N/B NOTES 0.25% 6/15/2024 2,677.50 53 105
Agenda Item # 4.
© PFM Asset Management LLC pfmam.com

CITY OF LOS ALTOS
For the Quarter Ended December 31, 2022
Portfolio Activity
|
Quarterly Portfolio Transactions
Trade
Date
Settle
Date Par ($) CUSIP
Maturity
Date
Transact
Coupon Amount ($)
Yield
at Market
Realized
Security Description G/L (BV)
INTEREST12/15/2022 12/15/2022 2,438.16 14316LAC7 CARMX 2019-2 A3 2.68% 3/15/2024 5.4512/15/2022 12/15/2022 1,500,000.00 91282CBA8 US TREASURY NOTES 0.12% 12/15/2023 937.5012/15/2022 12/15/2022 250,000.00 14041NFZ9 COMET 2022-A1 A1 2.80% 3/15/2027 583.3312/15/2022 12/15/2022 325,000.00 91282CDN8 US TREASURY N/B NOTES 1.00% 12/15/2024 1,625.0012/15/2022 12/15/2022 140,000.00 448977AD0 HART 2022-A A3 2.22% 10/15/2026 259.0012/15/2022 12/15/2022 82,879.56 89237VAB5 TAOT 2020-C A3 0.44% 10/15/2024 30.3912/15/2022 12/15/2022 110,000.00 89239HAD0 TAOT 2022-D A3 5.30% 9/15/2027 599.1912/15/2022 12/15/2022 105,000.00 89231CAD9 TAOT 2022-C A3 3.76% 4/15/2027 329.0012/15/2022 12/15/2022 120,000.00 44935FAD6 HART 2021-C A3 0.74% 5/15/2026 74.0012/15/2022 12/15/2022 390,000.00 58768PAC8 MBART 2022-1 A3 5.21% 8/16/2027 1,298.1612/15/2022 12/15/2022 125,000.00 14314QAC8 CARMX 2021-2 A3 0.52% 2/17/2026 54.1712/15/2022 12/15/2022 155,000.00 254683CP8 DCENT 2021-A1 A1 0.58% 9/15/2026 74.9212/15/2022 12/15/2022 370,000.00 02582JJT8 AMXCA 2022-2 A 3.39% 5/17/2027 1,045.2512/15/2022 12/15/2022 305,000.00 14041NFY2 COMET 2021-A3 A3 1.04% 11/15/2026 264.3312/15/2022 12/15/2022 335,000.00 14041NGA3 COMET 2022-A2 A 3.49% 5/15/2027 974.2912/15/2022 12/15/2022 70,477.93 44933FAC0 HART 2020-B A3 0.48% 12/16/2024 28.1912/15/2022 12/15/2022 13,638.31 41284UAD6 HDMOT 2020-A A3 1.87% 10/15/2024 21.25 54 106
Agenda Item # 4.
© PFM Asset Management LLC pfmam.com

CITY OF LOS ALTOS
For the Quarter Ended December 31, 2022
Portfolio Activity
|
Quarterly Portfolio Transactions
Trade
Date
Settle
Date Par ($) CUSIP
Maturity
Date
Transact
Coupon Amount ($)
Yield
at Market
Realized
Security Description G/L (BV)
INTEREST12/15/2022 12/15/2022 130,000.00 345286AC2 FORDO 2022-A A3 1.29% 6/15/2026 139.7512/15/2022 12/15/2022 58,112.41 14315XAC2 CARMX 2020-1 A3 1.89% 12/16/2024 91.5312/15/2022 12/15/2022 450,000.00 02008MAC3 ALLYA 2022-2 A3 4.76% 5/17/2027 1,785.0012/15/2022 12/15/2022 190,000.00 14317HAC5 CARMX 2022-2 A3 3.49% 2/16/2027 552.5812/15/2022 12/15/2022 245,000.00 02008JAC0 ALLYA 2022-1 A3 3.31% 11/15/2026 675.7912/15/2022 12/15/2022 295,000.00 14318UAD3 CARMX 2022-4 A3 5.34% 8/16/2027 1,312.7512/16/2022 12/16/2022 110,000.00 380146AC4 GMCAR 2022-1 A3 1.26% 11/16/2026 115.5012/16/2022 12/16/2022 155,000.00 36265WAD5 GMCAR 2022-3 A3 3.64% 4/16/2027 470.1712/16/2022 12/16/2022 125,000.00 362585AC5 GMCAR 2022-2 A3 3.10% 2/16/2027 322.9212/16/2022 12/16/2022 103,616.77 362590AC5 GMCAR 2020-3 A3 0.45% 4/16/2025 38.8612/16/2022 12/16/2022 100,000.00 362554AC1 GMCAR 2021-4 A3 0.68% 9/16/2026 56.6712/18/2022 12/18/2022 99,275.07 43813KAC6 HAROT 2020-3 A3 0.37% 10/18/2024 30.6112/20/2022 12/20/2022 29,589.16 92348TAA2 VZOT 2020-A A1A 1.85% 7/22/2024 45.6212/20/2022 12/20/2022 201,899.48 92290BAA9 VZOT 2020-B A 0.47% 2/20/2025 79.0812/20/2022 12/20/2022 26,987.96 92348AAA3 VZOT 2019-C A1A 1.94% 4/22/2024 43.6312/20/2022 12/20/2022 169,384.92 380144AC9 GMALT 2021-2 A3 0.34% 5/20/2024 47.9912/20/2022 12/20/2022 100,000.00 92868AAC9 VWALT 2022-A A3 3.44% 7/21/2025 286.67 55 107
Agenda Item # 4.
© PFM Asset Management LLC pfmam.com

CITY OF LOS ALTOS
For the Quarter Ended December 31, 2022
Portfolio Activity
|
Quarterly Portfolio Transactions
Trade
Date
Settle
Date Par ($) CUSIP
Maturity
Date
Transact
Coupon Amount ($)
Yield
at Market
Realized
Security Description G/L (BV)
INTEREST12/21/2022 12/21/2022 155,000.00 43815GAC3 HAROT 2021-4 A3 0.88% 1/21/2026 113.6712/25/2022 12/25/2022 135,000.00 05602RAD3 BMWOT 2022-A A3 3.21% 8/25/2026 361.1312/25/2022 12/25/2022 40,801.30 09661RAD3 BMWOT 2020-A A3 0.48% 10/25/2024 16.3212/25/2022 12/25/2022 50,620.39 05591RAC8 BMWLT 2021-1 A3 0.29% 1/25/2024 12.2312/31/2022 12/31/2022 1,000,000.00 912828ZW3 US TREASURY NOTES 0.25% 6/30/2025 1,250.00 Total INTEREST 45,205,444.04 162,382.18 0.00
MATURITY11/1/2022 11/1/2022 33,357.47 3137B1BS0 FHLMC MULTIFAMILY STRUCTURED P 2.51% 11/1/2022 33,427.2412/1/2022 12/1/2022 11,048.14 3136AEGQ4 FNA 2013-M7 A2 2.28% 12/1/2022 11,069.1312/1/2022 12/1/2022 14,526.25 3136AEGQ4 FNA 2013-M7 A2 2.28% 12/1/2022 14,553.85 Total MATURITY 58,931.86 59,050.22 0.00
PAYDOWNS10/1/2022 10/25/2022 17,903.20 3136AEGQ4 FNA 2013-M7 A2 2.28% 12/1/2022 17,903.2010/1/2022 10/25/2022 249.56 3136ARTE8 FNA 2016-M3 A2 2.70% 2/1/2026 249.56 8.4510/1/2022 10/25/2022 96.13 3137FQ3V3 FHMS KJ27 A1 2.09% 7/1/2024 96.1310/1/2022 10/25/2022 13,616.51 3136AEGQ4 FNA 2013-M7 A2 2.28% 12/1/2022 13,616.5110/1/2022 10/25/2022 137,896.46 3137B1BS0 FHLMC MULTIFAMILY STRUCTURED P 2.51% 11/1/2022 137,896.46 56 108
Agenda Item # 4.
© PFM Asset Management LLC pfmam.com

CITY OF LOS ALTOS
For the Quarter Ended December 31, 2022
Portfolio Activity
|
Quarterly Portfolio Transactions
Trade
Date
Settle
Date Par ($) CUSIP
Maturity
Date
Transact
Coupon Amount ($)
Yield
at Market
Realized
Security Description G/L (BV)
PAYDOWNS10/1/2022 10/25/2022 21.51 3137FKK39 FHMS KP05 A 3.20% 7/1/2023 21.5110/15/2022 10/15/2022 10,046.69 65479JAD5 NAROT 2019-C A3 1.93% 7/15/2024 10,046.6910/15/2022 10/15/2022 7,815.67 58769EAC2 MBALT 2020-B A3 0.40% 11/15/2023 7,815.6710/15/2022 10/15/2022 4,971.63 41284UAD6 HDMOT 2020-A A3 1.87% 10/15/2024 4,971.6310/15/2022 10/15/2022 9,856.31 89237VAB5 TAOT 2020-C A3 0.44% 10/15/2024 9,856.3110/15/2022 10/15/2022 9,886.12 44933FAC0 HART 2020-B A3 0.48% 12/16/2024 9,886.1210/15/2022 10/15/2022 7,694.76 98163WAC0 WOART 2020-B A3 0.63% 5/15/2025 7,694.7610/15/2022 10/15/2022 6,647.88 14316LAC7 CARMX 2019-2 A3 2.68% 3/15/2024 6,647.8810/15/2022 10/15/2022 6,837.17 14315XAC2 CARMX 2020-1 A3 1.89% 12/16/2024 6,837.1710/16/2022 10/16/2022 9,699.10 362590AC5 GMCAR 2020-3 A3 0.45% 4/16/2025 9,699.1010/18/2022 10/18/2022 9,981.57 43813KAC6 HAROT 2020-3 A3 0.37% 10/18/2024 9,981.5710/20/2022 10/20/2022 36,667.49 92290BAA9 VZOT 2020-B A 0.47% 2/20/2025 36,667.4910/20/2022 10/20/2022 18,025.23 92348AAA3 VZOT 2019-C A1A 1.94% 4/22/2024 18,025.2310/20/2022 10/20/2022 8,971.87 92348TAA2 VZOT 2020-A A1A 1.85% 7/22/2024 8,971.8710/20/2022 10/20/2022 13,197.96 362569AC9 GMALT 2020-3 A3 0.45% 8/21/2023 13,197.9610/20/2022 10/20/2022 20,394.54 380144AC9 GMALT 2021-2 A3 0.34% 5/20/2024 20,394.5410/25/2022 10/25/2022 5,880.86 09661RAD3 BMWOT 2020-A A3 0.48% 10/25/2024 5,880.86 57 109
Agenda Item # 4.
© PFM Asset Management LLC pfmam.com

CITY OF LOS ALTOS
For the Quarter Ended December 31, 2022
Portfolio Activity
|
Quarterly Portfolio Transactions
Trade
Date
Settle
Date Par ($) CUSIP
Maturity
Date
Transact
Coupon Amount ($)
Yield
at Market
Realized
Security Description G/L (BV)
PAYDOWNS10/25/2022 10/25/2022 10,644.43 05591RAC8 BMWLT 2021-1 A3 0.29% 1/25/2024 10,644.4311/1/2022 11/25/2022 12,435.10 3136AEGQ4 FNA 2013-M7 A2 2.28% 12/1/2022 12,435.1011/1/2022 11/25/2022 1,140.59 3137FQ3V3 FHMS KJ27 A1 2.09% 7/1/2024 1,140.5911/1/2022 11/25/2022 13,786.02 3136ARTE8 FNA 2016-M3 A2 2.70% 2/1/2026 13,786.02 466.8911/1/2022 11/25/2022 20.35 3137FKK39 FHMS KP05 A 3.20% 7/1/2023 20.3511/1/2022 11/25/2022 9,457.68 3136AEGQ4 FNA 2013-M7 A2 2.28% 12/1/2022 9,457.6811/15/2022 11/15/2022 806.21 44933LAC7 HART 2021-A A3 0.38% 9/15/2025 806.2111/15/2022 11/15/2022 7,389.08 98163WAC0 WOART 2020-B A3 0.63% 5/15/2025 7,389.0811/15/2022 11/15/2022 9,295.75 44933FAC0 HART 2020-B A3 0.48% 12/16/2024 9,295.7511/15/2022 11/15/2022 4,334.19 41284UAD6 HDMOT 2020-A A3 1.87% 10/15/2024 4,334.1911/15/2022 11/15/2022 9,408.06 89237VAB5 TAOT 2020-C A3 0.44% 10/15/2024 9,408.0611/15/2022 11/15/2022 6,313.02 14315XAC2 CARMX 2020-1 A3 1.89% 12/16/2024 6,313.0211/15/2022 11/15/2022 6,437.75 14316LAC7 CARMX 2019-2 A3 2.68% 3/15/2024 6,437.7511/15/2022 11/15/2022 9,299.63 65479JAD5 NAROT 2019-C A3 1.93% 7/15/2024 9,299.6311/15/2022 11/15/2022 7,929.33 58769EAC2 MBALT 2020-B A3 0.40% 11/15/2023 7,929.3311/16/2022 11/16/2022 8,465.94 362590AC5 GMCAR 2020-3 A3 0.45% 4/16/2025 8,465.9411/18/2022 11/18/2022 9,445.83 43813KAC6 HAROT 2020-3 A3 0.37% 10/18/2024 9,445.83 58 110
Agenda Item # 4.
© PFM Asset Management LLC pfmam.com

CITY OF LOS ALTOS
For the Quarter Ended December 31, 2022
Portfolio Activity
|
Quarterly Portfolio Transactions
Trade
Date
Settle
Date Par ($) CUSIP
Maturity
Date
Transact
Coupon Amount ($)
Yield
at Market
Realized
Security Description G/L (BV)
PAYDOWNS11/20/2022 11/20/2022 16,750.53 92348AAA3 VZOT 2019-C A1A 1.94% 4/22/2024 16,750.5311/20/2022 11/20/2022 34,213.67 92290BAA9 VZOT 2020-B A 0.47% 2/20/2025 34,213.6711/20/2022 11/20/2022 20,218.89 380144AC9 GMALT 2021-2 A3 0.34% 5/20/2024 20,218.8911/20/2022 11/20/2022 8,628.58 92348TAA2 VZOT 2020-A A1A 1.85% 7/22/2024 8,628.5811/20/2022 11/20/2022 5,081.25 362569AC9 GMALT 2020-3 A3 0.45% 8/21/2023 5,081.2511/25/2022 11/25/2022 5,391.76 09661RAD3 BMWOT 2020-A A3 0.48% 10/25/2024 5,391.7611/25/2022 11/25/2022 9,770.84 05591RAC8 BMWLT 2021-1 A3 0.29% 1/25/2024 9,770.8412/1/2022 12/25/2022 8,040.75 3136ARTE8 FNA 2016-M3 A2 2.70% 2/1/2026 8,040.75 272.3212/1/2022 12/25/2022 7,358.16 3137FKK39 FHMS KP05 A 3.20% 7/1/2023 7,358.1612/15/2022 12/15/2022 4,595.29 14314QAC8 CARMX 2021-2 A3 0.52% 2/17/2026 4,595.2912/15/2022 12/15/2022 8,625.38 44933FAC0 HART 2020-B A3 0.48% 12/16/2024 8,625.3812/15/2022 12/15/2022 6,996.16 98163WAC0 WOART 2020-B A3 0.63% 5/15/2025 6,996.1612/15/2022 12/15/2022 9,056.99 89237VAB5 TAOT 2020-C A3 0.44% 10/15/2024 9,056.9912/15/2022 12/15/2022 2,438.16 14316LAC7 CARMX 2019-2 A3 2.68% 3/15/2024 2,438.1612/15/2022 12/15/2022 8,756.76 58769EAC2 MBALT 2020-B A3 0.40% 11/15/2023 8,756.7612/15/2022 12/15/2022 3,821.16 41284UAD6 HDMOT 2020-A A3 1.87% 10/15/2024 3,821.1612/15/2022 12/15/2022 5,911.53 14315XAC2 CARMX 2020-1 A3 1.89% 12/16/2024 5,911.53 59 111
Agenda Item # 4.
© PFM Asset Management LLC pfmam.com

CITY OF LOS ALTOS
For the Quarter Ended December 31, 2022
Portfolio Activity
|
Quarterly Portfolio Transactions
Trade
Date
Settle
Date Par ($) CUSIP
Maturity
Date
Transact
Coupon Amount ($)
Yield
at Market
Realized
Security Description G/L (BV)
PAYDOWNS12/15/2022 12/15/2022 6,737.92 44933LAC7 HART 2021-A A3 0.38% 9/15/2025 6,737.9212/15/2022 12/15/2022 9,137.73 65479JAD5 NAROT 2019-C A3 1.93% 7/15/2024 9,137.7312/16/2022 12/16/2022 8,567.68 362590AC5 GMCAR 2020-3 A3 0.45% 4/16/2025 8,567.6812/18/2022 12/18/2022 8,990.78 43813KAC6 HAROT 2020-3 A3 0.37% 10/18/2024 8,990.7812/20/2022 12/20/2022 14,246.01 92348AAA3 VZOT 2019-C A1A 1.94% 4/22/2024 14,246.0112/20/2022 12/20/2022 7,544.15 92348TAA2 VZOT 2020-A A1A 1.85% 7/22/2024 7,544.1512/20/2022 12/20/2022 27,767.43 92290BAA9 VZOT 2020-B A 0.47% 2/20/2025 27,767.4312/20/2022 12/20/2022 18,518.10 380144AC9 GMALT 2021-2 A3 0.34% 5/20/2024 18,518.1012/25/2022 12/25/2022 5,322.34 09661RAD3 BMWOT 2020-A A3 0.48% 10/25/2024 5,322.3412/25/2022 12/25/2022 9,363.41 05591RAC8 BMWLT 2021-1 A3 0.29% 1/25/2024 9,363.41 Total PAYDOWNS 764,818.59 764,818.59 747.66
SELL10/4/2022 10/12/2022 450,000.00 91282CDA6 US TREASURY NOTES 0.25% 9/30/2023 432,951.15 -16,965.9510/6/2022 10/11/2022 575,000.00 23341VZT1 DNB BANK ASA/NY LT CD 2.04% 12/2/2022 577,982.29 -1,286.1310/11/2022 10/12/2022 10,000.00 91282CDA6 US TREASURY NOTES 0.25% 9/30/2023 9,614.49 -383.6610/26/2022 10/28/2022 165,000.00 91282CDA6 US TREASURY NOTES 0.25% 9/30/2023 158,689.54 -6,300.1910/27/2022 10/31/2022 225,000.00 3137EAEV7 FREDDIE MAC NOTES 0.25% 8/24/2023 217,150.94 -7,891.67 60 112
Agenda Item # 4.
© PFM Asset Management LLC pfmam.com

CITY OF LOS ALTOS
For the Quarter Ended December 31, 2022
Portfolio Activity
|
Quarterly Portfolio Transactions
Trade
Date
Settle
Date Par ($) CUSIP
Maturity
Date
Transact
Coupon Amount ($)
Yield
at Market
Realized
Security Description G/L (BV)
SELL10/27/2022 11/3/2022 125,000.00 91282CDD0 US TREASURY N/B NOTES 0.37% 10/31/2023 120,042.94 -4,781.0210/27/2022 10/31/2022 300,000.00 91282CDA6 US TREASURY NOTES 0.25% 9/30/2023 288,626.37 -11,361.8110/28/2022 11/2/2022 225,000.00 91282CDD0 US TREASURY N/B NOTES 0.37% 10/31/2023 215,881.61 -8,798.3011/1/2022 11/3/2022 125,000.00 91282CDD0 US TREASURY N/B NOTES 0.37% 10/31/2023 119,764.62 -5,059.3411/2/2022 11/8/2022 450,000.00 91282CDD0 US TREASURY N/B NOTES 0.37% 10/31/2023 431,246.27 -18,152.2611/2/2022 11/3/2022 500,000.00 91282CDD0 US TREASURY N/B NOTES 0.37% 10/31/2023 478,960.85 -20,335.0211/2/2022 11/3/2022 25,000.00 91282CAW1 US TREASURY NOTES 0.25% 11/15/2023 23,913.98 -1,123.4411/3/2022 11/7/2022 110,000.00 91282CAW1 US TREASURY NOTES 0.25% 11/15/2023 105,164.33 -5,002.9111/16/2022 11/22/2022 290,000.00 91282CAW1 US TREASURY NOTES 0.25% 11/15/2023 277,938.24 -12,166.1511/28/2022 12/5/2022 150,000.00 91282CAW1 US TREASURY NOTES 0.25% 11/15/2023 143,798.06 -6,267.7111/30/2022 12/7/2022 275,000.00 91282CAW1 US TREASURY NOTES 0.25% 11/15/2023 263,515.41 -11,608.4812/13/2022 12/16/2022 1,300,000.00 91282CAW1 US TREASURY NOTES 0.25% 11/15/2023 1,249,700.19 -50,956.08 Total SELL 5,300,000.00 5,114,941.28 -188,440.12
61 113
Agenda Item # 4.
© PFM Asset Management LLC pfmam.com

CITY OF LOS ALTOS
For the Quarter Ended December 31, 2022
Appendix
|
Important Disclosures
This material is for general information purposes only and is not intended to provide specific advice or a specific recommendation, as it was prepared without regard to any specific objectives or financial circumstances.Investment advisory services are provided by PFM Asset Management LLC ("PFMAM"), an investment adviser registered with the U.S. Securities and Exchange Commission and a subsidiary of U.S. Bancorp Asset Management, Inc. ("USBAM"). USBAM is a subsidiary of U.S. Bank National Association ("U.S. Bank"). U.S. Bankis a separate entity and subsidiary of U.S. Bancorp. U.S. Bank is not responsible for and does not guarantee the products, services or performance of PFMAM. The information contained is not an offer to purchase or sell any securities. Additional applicable regulatory information is available upon request.PFMAM professionals have exercised reasonable professional care in the preparation of this performance report. Information in this report is obtained from sourcesexternal to PFMAM and is generally believed to be reliable and available to the public; however, we cannot guarantee its accuracy, completeness or suitability. We rely on the client's custodian for security holdings and market values. Transaction dates reported by the custodian may differ from money manager statements. While efforts are made to ensure the data contained herein is accurate and complete, we disclaim all responsibility for any errors that may occur. References to particular issuers arefor illustrative purposes only and are not intended to be recommendations or advice regarding such issuers. Fixed income manager and index characteristics are gathered from external sources. When average credit quality is not available, it is estimated by taking the market value weights of individual credit tiers on the portion ofthe strategy rated by a NRSRO.It is not possible to invest directly in an index. The index returns shown throughout this material do not represent the results of actual trading of investor assets.

Third-party providers maintain the indices shown and calculate the index levels and performance shown or discussed. Index returns do not reflect payment of any salescharges or fees an investor would pay to purchase the securities they represent. The imposition of these fees and charges would cause investment performance to belower than the performance shown.The views expressed within this material constitute the perspective and judgment of PFMAM at the time of distribution and are subject to change. Any forecast,projection, or prediction of the market, the economy, economic trends, and equity or fixed-income markets are based upon certain assumptions and current opinion asof the date of issue and are also subject to change. Some, but not all assumptions are noted in the report. Assumptions may or may not be proven correct as actualevents occur, and results may depend on events outside of your or our control. Changes in assumptions may have a material effect on results. Opinions and datapresented are not necessarily indicative of future events or expected performance.For more information regarding PFMAM's services or entities, please visit www.pfmam.com.© 2022 PFM Asset Management LLC. Further distribution is not permitted without prior written consent. 62 114
Agenda Item # 4.
© PFM Asset Management LLC pfmam.com

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

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

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

Bank of America/Merrill Lynch Indices provided by Bloomberg Financial Markets.Money market fund/cash balances are included in performance and duration computations.Standard & Poor's is the source of the credit ratings. Distribution of credit rating is exclusive of money market fund/LGIP holdings.Callable securities in the portfolio are included in the maturity distribution analysis to their stated maturity date, although, they may be called prior to maturity.MBS maturities are represented by expected average life. 63 115
Agenda Item # 4.
© PFM Asset Management LLC pfmam.com

CITY OF LOS ALTOS
For the Quarter Ended December 31, 2022
Appendix
|
Glossary
Accrued Interest: Interest that is due on a bond or other fixed income security since the last interest payment was made.Agencies: Federal agency securities and/or Government-sponsored enterprises.Amortized Cost: The original cost of the principal of the security is adjusted for the amount of the periodic reduction of any discount or premium from the purchase date until the date of the report. Discount or premium with respect to short-term securities (those with less than one year to maturity at time of issuance) is amortized on a straight line basis. Such discount or premium with respect to longer-term securities is amortized using the constant yield basis.

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

Bankers’ Acceptance: A draft or bill or exchange accepted by a bank or trust company. The accepting institution guarantees payment of the bill as well as the insurer.Commercial Paper: An unsecured obligation issued by a corporation or bank to finance its short-term credit needs, such as accounts receivable and inventory.Contribution to Total Return: The weight of each individual security multiplied by its return, then summed for each sector to determine how much each sector addedor subtracted from the overall portfolio performance.Effective Duration: A measure of the sensitivity of a security’s price to a change in interest rates, stated in years.Effective Yield: The total yield an investor receives in relation to the nominal yield or coupon of a bond. Effective yield takes into account the power of compoundingon investment returns, while nominal yield does not.FDIC: Federal Deposit Insurance Corporation. A federal agency that insures bank deposits to a specified amount.Interest Rate: Interest per year divided by principal amount and expressed as a percentage.Market Value: The value that would be received or paid for an investment in an orderly transaction between market participants at the measurement date.Maturity: The date upon which the principal or stated value of an investment becomes due and payable.Negotiable Certificates of Deposit: A CD with a very large denomination, usually $1 million or more, that can be traded in secondary markets.Par Value: The nominal dollar face amount of a security.Pass-through Security: A security representing pooled debt obligations that passes income from debtors to its shareholders. The most common type is themortgage-backed security. 64 116
Agenda Item # 4.
© PFM Asset Management LLC pfmam.com

CITY OF LOS ALTOS
For the Quarter Ended December 31, 2022
Appendix
|
Glossary
Repurchase Agreements: A holder of securities sells these securities to an investor with an agreement to repurchase them at a fixed price on a fixed date.Settle Date: The date on which the transaction is settled and monies/securities are exchanged. If the settle date of the transaction (i.e., coupon payments andmaturity proceeds) occurs on a non-business day, the funds are exchanged on the next business day.Supranational: A multinational union or association in which member countries cede authority and sovereignty on at least some internal matters to the group, whosedecisions are binding on its members.Trade Date: The date on which the transaction occurred; however, the final consummation of the security transaction and payment has not yet taken place.Unsettled Trade: A trade which has been executed; however, the final consummation of the security transaction and payment has not yet taken place.U.S. Treasury: The department of the U.S. government that issues Treasury securities.Yield: The rate of return based on the current market value, the annual interest receipts, maturity value, and the time period remaining until maturity, stated as a percentage on an annualized basis.

YTM at Cost: The yield to maturity at cost is the expected rate of return based on the original cost, the annual interest receipts, maturity value, and the time periodfrom purchase date to maturity, stated as a percentage on an annualized basis.YTM at Market: The yield to maturity at market is the rate of return based on the current market value, the annual interest receipts, maturity value, and the timeperiod remaining until maturity, stated as a percentage on an annualized basis. 65 117
Agenda Item # 4.

Reviewed By:

City Manager City Attorney
JM
Finance Director
JH JD

AGENDA REPORT SUMMARY
Meeting Date: March 14, 2023
Subject City Council Strategic Goals
Prepared by: Jon Maginot, Assistant City Manager
Approved by: Jon Maginot, Assistant City Manager
Attachment(s):

1. Resolution No. 2023-xx
Initiated by:

City Council
Previous Council Consideration:

February 21, 2023
Fiscal Impact:

Unknown at this time
Environmental Review:

Not applicable
Policy Question(s) for Council Consideration:
 Does the Council wish to adopt the Resolution affirming the City Council Strategic Goals? Summary:
 On February 21, 2023, the City Council reviewed its Strategic Goals  The City Council has indicated six goal areas: Asset Management, Business Communities, Community Safety, Environmental Sustainability, Housing, Neighborhood Safety Infrastructure
Staff Recommendation:

Adopt a Resolution affirming the City Council Strategic Goals 118
Agenda Item # 5.

Subject: City Council Strategic Goals
February 14, 2023 Page 2
Purpose
To adopt a Resolution affirming the City Council Strategic Goals Background
On February 21, 2023, the City Council reviewed its Strategic Goals and provided direction on proposed revisions.

Discussion/Analysis
The six goals proposed by City Council are:

1. Asset Management: The City of Los Altos will set clear expectations through the budget process and allocate the necessary funding to support the maintenance and improvement of City facilities and infrastructure.

2. Business Communities: The City of Los Altos will support the different business communities in an effort to help them thrive, including implementing specific projects and/or elements of the Downtown Vision Plan and launching initiatives to bolster the other business communities.

3. Community Safety: The City of Los Altos will continue to provide the high-quality public safety services that the Community values. This will be achieved by implementing the City’s policies as expressed in the Complete Streets Master Plan and other plans which support improving public safety, transportation safety and emergency preparedness services.

4. Environmental Sustainability: The City of Los Altos will be a leader in environmental sustainability through education, and adopting and implementing policies, initiatives and practices identified in the City’s Climate Action and Adaptation Plan.

5. Housing: The City of Los Altos will implement the programs and policies of the Housing Element Update to support the creation of housing that is safe, diverse and affordable for all income levels to meet the needs of the Community and seek to increase and protect its green space.

6. Neighborhood Safety and Infrastructure:

In addition, the Council directed staff to draft an introduction to the Strategic Goals which incorporates the values of community engagement, fiscal prudency, staffing, and making equitable and sustainable decisions. Staff has drafted the following Vision Statement for the Council Goals:

The City Council Strategic Goals highlight those areas identified by the Council for emphasis and focus. The City Council will accomplish these goals by engaging the community and making decisions which are equitable, sustainable and fiscally prudent. The City Council will ensure that appropriate resources are allocated to 119
Agenda Item # 5.

Subject: City Council Strategic Goals
February 14, 2023 Page 3
maintain Los Altos as a great place to live and work, including providing a work culture and environment that supports recruitment and retention of exceptional employees to provide City services.

Note, at the February 21, 2023 meeting, City Council directed the Neighborhood Safety and Infrastructure Subcommittee to work with staff to develop language for Goal #6. The subcommittee is still working with staff to develop appropriate language. To finalized the remaining goals now, Council is being asked to adopted the proposed Resolution. Once the language for Goal #6 has been drafted, a Resolution will be presented to adopt all goals.

Recommendation
The staff recommends Council adopt the Resolution affirming the City Council Strategic Goals. 120
Agenda Item # 5.

Resolution No. 2023-xx Page 1
RESOLUTION NO. 2023-xx

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LOS ALTOS AFFIRMING THE CITY COUNCIL’S 5-YEAR STRATEGIC GOALS
WHEREAS, the Mission of the City of Los Altos is “to foster and maintain the City of Los Altos as a great place to live and to raise a family;” and WHEREAS, the City Council is committed to providing essential services to the community; and
WHEREAS, on February 23, 2021, the City Council adopted 5-Year Strategic Goals to help maintain Los Altos as the great place it is and on April 26, 2022 the Council revised and affirmed those goals; and
WHEREAS, on February 21, 2023, the City Council reviewed its 5-Year Strategic Goals; and
WHEREAS, the City Council provided direction to the Neighborhood Safety and Infrastructure Subcommittee to work with staff to define Goal #6 and the subcommittee is continuing to refine the definition which will be presented to Council for adoption in the future.

NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Los Altos hereby adopts the following as its 5-Year Strategic Goals:

The City Council will ensure that appropriate resources are allocated to maintain Los Altos as a great place to live and work, including providing a work culture and environment that supports recruitment and retention of exceptional employees to provide City services.

3. Community Safety: The City of Los Altos will continue to provide the highquality public safety services that the Community values. This will be achieved by implementing the City’s policies as expressed in the Complete Streets Master Plan and other plans which support improving public safety, transportation safety and emergency preparedness services.
121
Agenda Item # 5.

Resolution No. 2023-xx Page 2

6. Neighborhood Safety Infrastructure:

I HEREBY CERTIFY that the foregoing is a true and correct copy of a Resolution passed and adopted by the City Council of the City of Los Altos at a meeting thereof on the 14th day of March, 2023 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
___________________________
Sally Meadows, MAYOR
Attest:
_____________________________
Angel Rodriguez, Interim City Clerk
122
Agenda Item # 5.

Reviewed By:

City Manager City Attorney
JM
Finance Director
JH JD

AGENDA REPORT SUMMARY
Meeting Date: March 14, 2023
Subject Construction Contract Award: Sewer System Repair Program, Project WW-01001
Prepared by: Thanh Nguyen, Senior Civil Engineer
Reviewed by: Aida Fairman, Environmental Services and Utilities Director Approved by: Jon Maginot, Assistant City Manager
Attachment:

1. Bid Results
A. Resolution No. 2023- ___
Initiated by:

Capital Improvement Plan - Project WW-01001; 2013 Sanitary Sewer Master Plan Previous Council Consideration:

February 9, 2021
Fiscal Impact:

The construction contract will be in the amount not-to-exceed $778,550 and up to 15% contingency, if needed, in the amount not-to-exceed $116,783 - Breakdown of funds to be used:
o $1,951,075 Sewer Enterprise Fund
- Amount already included in the approved budget: Y
- Amount above budget requested: 0 (includes budget approved for FY 2022/23) Project Item Project Budget
Design $209,494.00
Design contingency (remained) $18,484.00
Construction (Base Bid+Add Alt No. 1) $778,550.00
Inspection services $84,824.00
Printing/Environmental Doc/Misc. $4,500.00
Construction contingency (15%) $116,783.00
Estimated Total Cost $1,212,635.00
123
Agenda Item # 6.

Subject: Construction Contract Award: Sewer System Repair Program, Project WW-01001 March 14, 2023 Page 2
Environmental Review:

The acceptance of the work is categorically exempt from review under California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15301(b) (Existing Facilities), in that the project consists of the operation, repair, and maintenance of existing facilities. Also, the project involves negligible or no expansion of existing or former use, and none of the circumstances stated in CEQA Guidelines Section 15300.2 applies.

Summary:
 The Sewer System Repair Program Project WW01001, includes replacing and realigning five sewer main segments totaling to 1,479 linear feet of sewer pipes located along First Street in downtown Los Altos between San Antonio Road and Main Street.

Staff Recommendation:

Award the construction contract for the Base Bid and the Additive Alternate No. 1 (Total Bid) for the Sewer System Repair Program Project WW-01001 to Casey Construction, Inc. as the lowest responsive bidder submitting a bid in the amount not-to-exceed $778,550 and approve the City Manager the authority up to 15% construction contingency if needed, in the amount not-to-exceed $116,783
Funding Source: Sewer Enterprise Fund
Sewer System Repair Program Project WW-01001
Project balance from prior Fiscal Years $890,569
FY 2021/22 Budget $630,000
Expended / Encumbered to date (for design) ($209,494)
FY 2022/23 Budget $640,000
Total Available $1,951,075
124
Agenda Item # 6.

Subject: Construction Contract Award: Sewer System Repair Program, Project WW-01001 March 14, 2023 Page 3
Purpose
Award the construction contract for the Total Bid for the Sewer System Repair Program Project WW-01001 to Casey Construction, Inc. as the lowest responsible bidder submitting a responsive bid in the amount not-to-exceed $778,550.

Background
This project scope includes realigning and replacing five sewer main segments, located along First Street between San Antonio Road and Main Street in Downtown Los Altos. This comprises a total of 1,479 linear feet of sewer pipes replacement. The existing 6-inch sewer pipes will be replaced with new 8-inch sewer pipes to increase capacity. On March 7, 2021, the City Manager executed an agreement with Bellecci & Associates for design and construction services for the project, which includes completion of a preliminary design assessment, design, bid support, and construction support in the amount of $189,982. On November 16, 2021, the City Manager executed an amendment No. 1 with Bellecci & Associates for the additional services requested by the City in the amount of $19,512, which included performing a flow analysis of the existing 6-in sewer pipes downstream of the project limits.

The sewer main segments were identified in the 2013 Sanitary Sewer Master Plan Update as segments that need replacement due to the existing sewer pipe materials. In addition, realigning the pipe segments will provide clearance from potential future sidewalks and curbs, which will resolve potential maintenance issues.

Discussion/Analysis
On February 2, 2023, six bids were opened for the project. The bid results are included in Attachment 1. The project consists of realigning and replacing five sewer main segments, located along First Street between San Antonio Road and Main Street in Downtown Los Altos. It is recommended that the award of the construction contract for the project be made to Casey Construction, Inc., as the lowest responsive bidder submitting a bid in the amount not-to-exceed $778,550 and up to 15% contingency funds in the amount not-to-exceed $116,783 be approved for potential unforeseen conditions during construction.

Casey Construction, Inc. has no claims against its contractor’s license. There are no open violations for Casey Construction, Inc. listed in the Federal Government’s Occupational Safety and Health Administration (OSHA) database. Casey Construction, Inc. has been in business for over 35 years and has satisfactorily completed similar projects for the City of Redwood City, City of Palo Alto, City of Mountain View, and the City of San Jose.
125
Agenda Item # 6.

Subject: Construction Contract Award: Sewer System Repair Program, Project WW-01001 March 14, 2023 Page 4
Recommendation
Award the construction contract for the Base Bid and the Additive Alternate No. 1 (Total Bid) for the Sewer System Repair Program Project WW-01001 to Casey Construction, Inc. as the lowest responsive bidder submitting a bid in the amount not-to-exceed $778,550 and approve the City Manager the authority up to 15% construction contingency if needed, in the amount not-to-exceed $116,783.
.
126
Agenda Item # 6.

ATTACHMENT A

Page 1 ends

RESOLUTION NO. 2023-___

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LOS ALTOS

AUTHORIZING THE CITY MANAGER TO EXECUTE A CONSTRUCTION
CONTRACT WITH CASEY CONSTRUCTION, INC. FOR SEWER SYSTEM REPAIR PROGRAM PROJECT WW-01001 IN AN AMOUNT NOT-TO-EXCEED $778,550 AND UP TO 15% CONTINGENCY FUNDS NOT-TO-EXCEED $116,783 WHEREAS, the project, which consists of abandoning the existing 6-in ACP sewer main in place, relocating & realigning a new 8-in PVC sewer main to approximately the center of the street, and realigning & reconnecting existing laterals which the work will provide necessary improvements to the City’s sanitary sewer system to ensure its proper functioning; and
WHEREAS, Casey Construction, Inc. was the lowest responsible, responsive bidder for the Project; and
WHEREAS, the project is the acceptance of the work is categorically exempt from review under California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15301(b) (Existing Facilities), in that the project consists of the operation, repair, and maintenance of existing facilities. Also, the project involves negligible or no expansion of existing or former use, and none of the circumstances stated in CEQA Guidelines Section 15300.2 applies.

NOW THEREFORE, BE IT RESOLVED, that the City Council of the City of Los Altos hereby:

1. Authorizes the City Manager to execute a Construction Contract in an amount not-to-exceed $778,550 and up to 15% contingency funds not-to-exceed $116,783 to perform the Sewer System Repair Program Project.

2. Authorizes the City Manager to take such further actions as may be necessary to implement the foregoing agreement.

I HEREBY CERTIFY that the foregoing is a true and correct copy of a Resolution passed and adopted by the City Council of the City of Los Altos at a meeting thereof on the 28th day of March, 2023, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
127
Agenda Item # 6.

ATTACHMENT A

Page 2 ends

___________________________
Sally Meadows, MAYOR
Attest:
__________________________________
Angel Rodriguez, INTERIM CITY CLERK
128
Agenda Item # 6.

ATTACHMENT 1

Page 1 of 1 ends

CITY OF LOS ALTOS

SEWER SYSTEM REPAIR PROGRAM PROJECT
WW01001

BID SUMMARY
Bid Opening: February 2, 2023 2:00 p.m.

City of Los Altos Civic Center
One North San Antonio Road
Los Altos, CA 94022

CONTRACTOR

TOTAL BASE
BID

TOTAL ADD
ALT NO. 1 TOTAL BID
Casey Construction Inc. $716,750.00 $61,800.00 $778,550.00 C2R Engineering Inc. $1,050,205.00 $137,325.00 $1,187,530.00 Pacific Underground Construction $1,203,567.00 $195,928.00 $1,399,495.00 Basset Engineering $1,700,396.00 $243,103.00 $1,943,499.00 KJ Woods Construction $1,806,000.00 $172,000.00 $1,978,000.00 OBS Engineering $2,064,700.00 $367,500.00 $2,432,200.00 129
Agenda Item # 6.

AGENDA REPORT SUMMARY

Reviewed By:

City Manager City Attorney
GE
Finance Director
JH JD
Meeting Date: March 28, 2023
Subject: Consider Approving Contract Amendment No. 4: Santa Clara Valley Runoff Pollution Prevention Program (SCVURPPP); find that the approval of the amendment is exempt from review under the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines Sections 15061(b)(3) and 15308 Prepared by: Erin McDannold, Assistant Civil Engineer
Reviewed by: Aida Fairman, Director of Environmental Services & Utilities Department Approved by: Gabriel Engeland, City Manager
Attachments:

1. Fourth Amendment to Memorandum of Agreement (MOA) and Appendices A. Resolution No. 2023-XX
Initiated by:

SCVURPPP/City Staff
Previous Council Consideration:

November 22, 1999 – Original SCVURPPP Memorandum of Agreement (MOA) November 23, 2004 – First Amendment
December 21, 2005 – Second Amendment
October 25, 2016 – Third Amendment
November 15, 2022 – Municipal Regional Stormwater Permit: Overview of New Requirements Fiscal Impact:

None at this time.

The City’s proportionate share of the Program costs is 1.59%. Program costs are paid from the allocated Stormwater Operating Budget, which is funded by the General Fund. The Progress Assessment for the City of Los Altos for FY 22-23 was $82,568, which was paid for from the adopted budget. The Progress Assessment for FY 23-24 will be $89,970. 130
Agenda Item # 7.

Subject: Contract Amendment No. 4: Santa Clara Valley Runoff Pollution Prevention Program
March 28, 2023 Page 2
Environmental Review:

The approval of the Fourth Amendment to the MOA is exempt from review under the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines Section 15061(b)(3) (Commonsense Exemption) and 15308 (Actions Taken by Regulatory Agencies for the Protection of the Environment), in that the action merely continues the City’s existing participation in a program that fosters compliance with state and federal law intended to protect water quality, the action will not involve construction activities or relaxation of standards allowing for environmental degradation, and none of the circumstances stated in CEQA Guidelines Section 15300.2 applies.

Policy Questions for Council Consideration:

Not applicable
131
Agenda Item # 7.

Subject: Contract Amendment No. 4: Santa Clara Valley Runoff Pollution Prevention Program
March 28, 2023 Page 3
Summary:
 The Santa Clara Valley Urban Runoff Pollution Prevention Program (SCVURPPP) assists the City of Los Altos and other agencies in Santa Clara County to negotiate and comply with a federal Clean Water Act National Pollutant Discharge Elimination System (NPDES) permit that cities are required to have for stormwater that flows to creeks, streams, and, ultimately, San Francisco Bay.
 The City of Los Altos and other agencies in Santa Clara County expect to use the Program to continue to represent their interests relative to Municipal Regional Permit (MRP 3.0), to help them effectuate certain aspects of compliance with MRP 3.0, and to negotiate the terms of a further renewed NPDES Permit when MRP 3.0 nears the end of its five-year term and any administrative extension provided.
 All Program participants are required to obtain approval from the legislative authority for the MOA amendment extending the agreement through 2028. The current MOA will expire in July of 2023, if not extended.

Staff Recommendation:

Approve the Fourth Amendment to the Santa Clara Valley Urban Runoff Pollution Prevention Program’s Memorandum of Agreement (MOA) and direct the City Manager to execute the Amendment on behalf of the City
132
Agenda Item # 7.

Subject: Contract Amendment No. 4: Santa Clara Valley Runoff Pollution Prevention Program
March 28, 2023 Page 4
Purpose
Execute the Fourth Amendment to the Santa Clara Valley Urban Runoff Pollution Prevention Program MOA.

Background
The Santa Clara Valley Urban Pollution Prevention and Urban Runoff Program (Program) was originally formed through a memorandum of agreement (MOA) with other Santa Clara Valleybased local governments in the late 1980s. This was a means to assist the City of Los Altos in negotiating and complying with a federal Clean Water Act National Pollutant Discharge Elimination System (NPDES) permit that cities are required to have for stormwater that flows to creeks, streams, and, ultimately, theSan Francisco Bay. Bay Area municipalities were recently issued a new Municipal Regional Stormwater Permit in May 2022, which became effective July 1, 2022. This permit is shared by 76 permittees in the San Francisco Area.

This MRP 3.0 includes and expands on many of the previous requirements and contains new provisions. MRP 3.0 includes more stringent requirements on existing provisions for new development/redevelopment, trash load reduction, PCB, mercury and bacteria controls, and water quality monitoring and introduces new provisions on unsheltered homeless populations, cost reporting, and asset management. Outside those mentioned above, previously existing provisions also encountered minor changes. An overview of new MRP 3.0 requirements was shared with City Council on November 15, 2022. Thus far, the Program has been highly engaged in understanding these changes with local regulatory agencies and helping permittees adapt to new MRP 3.0 requirements.

The Program allows the City of Los Altos to undertake a coordinated approach and leverage resources with respect to our stormwater permit. This method has been highly effective in assisting the City to address our responsibilities, twice winning national awards issued by the U.S.

Environmental Protection Agency. Since its original formation, the participating local governments, including the City of Los Altos, have thrice previously authorized a continuation of the Program without changing its original terms.

Discussion/Analysis
Based on a recent vote of the Program’s Management Committee, in which the City participates, a fourth amendment of the MOA to extend the Program on its original terms was unanimously approved for referral to our governing body for execution. The extension will allow the Program to continue to operate and serve the participating agencies throughout the current Clean Water Act Permit’s term plus one additional fiscal year (providing Program assistance until at least the July of 2028 and addressing the Permit’s next re-issuance by the Regional Water Quality Control Board).
133
Agenda Item # 7.

Subject: Contract Amendment No. 4: Santa Clara Valley Runoff Pollution Prevention Program
March 28, 2023 Page 5
All Program participants are required to obtain approval from the legislative authority for the MOA amendment extending the agreement through July 2028. The current MOA will expire in July of 2023 if not extended.

The City of Los Altos and other agencies in Santa Clara County expect to utilize the Program to continue to represent their interests relative to Municipal Regional Permit (MRP 3.0), to help them effectuate certain aspects of compliance with MRP 3.0, and to negotiate the terms of a further renewed NPDES Permit when MRP 3.0 nears the end of its five-year term and any administrative extension provided.

Recommendation
Approve the Fourth Amendment to the Santa Clara Valley Urban Runoff Pollution Prevention Program’s Memorandum of Agreement (MOA) and direct the City Manager to execute the Amendment on behalf of the City
134
Agenda Item # 7.
1 FOURTH AMENDMENT TO AGREEMENT

PROVIDING FOR IMPLEMENTATION OF

THE SANTA CLARA VALLEY URBAN RUNOFF

POLLUTION PREVENTION PROGRAM

THIS FOURTH AMENDMENT TO AGREEMENT PROVIDING FOR

IMPLEMENTATION OF THE SANTA CLARA VALLEY URBAN RUNOFF
POLLUTION PREVENTION PROGRAM (the “Amendment”) is entered into by and between the SANTA CLARA VALLEY WATER DISTRICT, a local public agency of the State of California (“District”); CITY OF CAMPBELL, a municipal corporation of the State of California; CITY OF CUPERTINO, a municipal corporation of the State of California; CITY OF LOS ALTOS, a municipal corporation of the State of California; TOWN OF LOS ALTOS HILLS, a municipal corporation of the State of California; TOWN OF LOS GATOS, a municipal corporation of the State of California; CITY OF MILPITAS, a municipal corporation of the State of California; CITY OF MONTE SERENO, a municipal corporation of the State of California; CITY OF MOUNTAIN VIEW, a municipal corporation of the State of California; CITY OF PALO ALTO, a municipal corporation of the State of California; CITY OF SAN JOSE, a municipal corporation of the State of California; CITY OF SANTA CLARA, a municipal corporation of the State of California; CITY OF SARATOGA, a municipal corporation of the State of California; CITY OF SUNNYVALE, a municipal corporation of the State of California; and COUNTY OF SANTA CLARA, a political subdivision of the State of California.

All of the above-mentioned entities are hereinafter collectively referred to as “Parties” or individually as “Party.”

RECITALS
A. The Parties previously entered into that certain Agreement Providing For Implementation of the Santa Clara Valley Urban Runoff Pollution Prevention Program (the “Agreement” or “MOA”) pursuant to which the Parties established certain terms and conditions relating to the implementation and oversight of the Santa Clara Valley Urban Runoff Pollution Prevention Program (the “Program”), including a cost sharing allocation, which was appended thereto as Exhibit A. Unless otherwise set forth herein, all terms shall have the meaning set forth in the Agreement as amended. A copy of the Agreement inclusive of Exhibit A is attached hereto as Appendix 1. A copy of the Agreement inclusive of all of its previous amendments is available via the internet at https://scvurppp.org/wpcontent/uploads/2019/10/MOA_2016_complete_package_DEC_2016.pdf); B. The Agreement originally provided for a five-year term, which, based on its execution, was set to conclude on or about March 10, 2005. However, on or about February 20, 2005, the Parties unanimously entered into a First Amendment to the Agreement, which extended the term of the Agreement by one additional year; 135
Agenda Item # 7.
2 C. The Parties thereafter unanimously entered into a Second Amendment to the Agreement, which extended the term of the amended Agreement by “one fiscal year beyond the termination date of the (then) next NPDES Permit issued to the Parties, including any administrative extension of the (then) next NPDES Permit’s term which occurred pursuant to the NPDES regulations.” The next NPDES permit applicable to the Parties (and others) was subsequently adopted by the California Regional Water Quality Control Board, San Francisco Bay Region (“RWQCB SFBR”) on October 14, 2009 and was known as the Municipal Regional Permit (“MRP”) because it covered numerous public agencies in the San Francisco Bay Region in addition to the Parties. The MRP was then administratively extended until a new NPDES Permit applicable to the Parties (and the other public entities in the San Francisco Bay Region) was adopted by the California Regional Water Quality Control Board, San Francisco Bay Region, on November 19, 2015 (“MRP 2.0”). MRP 2.0 became effective on January 1, 2016 and was originally scheduled to terminate on December 31, 2020; D. The Parties thereafter unanimously entered into a Third Amendment to the Agreement, which once again extended the term of the amended Agreement by “one fiscal year beyond the termination date of the next NPDES Permit issued to the Parties, including any administrative extension of the next NPDES Permit’s term which occurred pursuant to the NPDES regulations.” MRP 2.0 was then administratively extended, largely due to the COVID-19 pandemic, until a new NPDES Permit applicable to the Parties (and the other public entities in the San Francisco Bay Region) was adopted by the California Regional Water Quality Control Board, San Francisco Bay Region, on May 11, 2022 (“MRP 3.0”). MRP 3.0 became effective on July 1, 2022 and is currently scheduled to terminate on June 30, 2027 unless administratively extended; E. The Parties expect to utilize the Program to continue to represent their interests relative to MRP 3.0 (including with respect to an administrative appeal of its adoption that the State Water Resources Control Board is considering to pursue on its own motion), to help them effectuate certain aspects of compliance with MRP 3.0, and, beyond that, in negotiating the terms of a further renewed NPDES Permit when MRP 3.0 nears the end of its anticipated five-year term and any administrative extension provided thereto;
F. The Parties also expect to continue to utilize the Program’s preferred approach of achieving consensus to resolve issues and reach decisions, and to rely on the Majority Vote mechanism set forth in Section 2.08 of the Agreement at the Management Committee level only when consensus-based resolutions appear or become elusive; G. The Parties now desire to update the Agreement as previously amended and further extend the term of the MOA as set forth below; H. Section 7.02 of the MOA provides that it may be amended by the unanimous written agreement of the Parties and that all Parties agree to bring any proposed amendments to their Council or Board, as applicable, within three (3) months following acceptance by the Management Committee; and
136
Agenda Item # 7.
3 I. The Program’s Management Committee accepted this Amendment for referral to the Parties’ Councils and/or Boards at its meeting on January 19, 2023.

NOW, THEREFORE, THE PARTIES HERETO FURTHER AGREE AS
FOLLOWS:

1. Recognition of Current Permit. Recital F of the Agreement, as previously amended, is hereby further amended by the addition of the following subsections:

6. Order No. R2-2009-0074 (the Municipal Regional Permit, NPDES Permit CAS612008); adopted October 14, 2009 and amended by the RWQCB SFBR on November 28, 2011;

7. Order No. R2-2015-0049 (MRP 2.0, NPDES Permit CAS612008); adopted by the RWQCB SFBR on November 19, 2015;

8. Order No. R2-2022-0018 (MRP 3.0, NPDES Permit CAS612008); adopted by the RWQCB SFBR on May 11, 2022.

2. Extension of Term of Agreement. Sections 6.02 and 6.02.01 of the Agreement, as previously amended, are hereby replaced as follows:

This Agreement shall have a term extending one fiscal year beyond the date of termination of MRP 3.0; such termination date shall, however, be deemed to include any administrative extension of MRP 3.0 which occurs or arises pursuant to the NPDES regulations or any modification of the MRP 3.0
termination date that arises from an NPDES permitting action undertaken by the RWQCB SFBR or California State Water
Resources Control Board.

3. Superseding Effect. This Fourth Amendment of the Agreement shall supplement all prior amendments of the Agreement and supersede any conflicting provisions of the prior amendments of the Agreement.
[remainder of page intentionally blank]
137
Agenda Item # 7.
4 IN WITNESS WHEREOF, the Parties have executed this Fourth Amendment effective as of the last date indicated below or April 19, 2023, whichever arises earlier.

Santa Clara Valley Water District: By: ____________________________________ Name: ____________________________________
Title: ____________________________________
Date: ____________________________________
County of Santa Clara: By: ____________________________________ Name: ____________________________________
Title: ____________________________________
Date: ____________________________________
City of ____________________: By: ____________________________________ Name: ____________________________________
Title: ____________________________________
Date: ____________________________________
138
Agenda Item # 7.

ATTACHMENT A
Resolution No. 2023-__ Page 1
RESOLUTION NO. 2023-__

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LOS ALTOS

DIRECTING THE CITY MANAGER TO APPROVE AND EXECUTE THE

FOURTH AMENDMENT TO THE MEMORANDUM OF AGREEMENT WITH

OTHER SANTA CLARA VALLEY MUNICIPALITIES TO ALLOW FOR

CONTINUATION OF THE SANTA CLARA VALLEY URBAN RUNOFF

POLLUTION PREVENTION PROGRAM
WHEREAS, the Santa Clara Valley Urban Runoff Pollution Prevention Program (SCVURPPP) was originally formed in 1990 through the Memorandum of Agreement to aid Santa Clara Valley-based jurisdictions with stormwater permit compliance per the Municipal Regional Permit; and
WHEREAS, the SCVURPPP is invaluable in providing and pooling resources to meet permit requirements since its’ formation; and
WHEREAS, the existing Memorandum of Agreement has already been amended three times prior and SCVURPPP will cease to exist July 1, 2023 if not amended for a fourth time by April 19, 2023.

NOW THEREFORE, BE IT RESOLVED, that the City Council of the City of Los Altos hereby authorizes the following:

1. That the City Manager is directed to execute the Fourth Ammendment to the Memorandum of Agreement; and

2. That the acceptance of the work under this MOA is exempt from review under the California Environmental Quality Act (“CEQA”) for reasons stated in the staff report.

AYES:

NOES:

ABSENT:

ABSTAIN:
___________________________
Sally Meadows, MAYOR
Attest:
_____________________________
Angel Rodriguez, INTERIM CITY CLERK
139
Agenda Item # 7.

Reviewed By:

City Manager Development Services Director
GE NZ

AGENDA REPORT SUMMARY
Meeting Date: March 28, 2023
Subject 2022 Housing Element Annual Progress Report
Prepared by: Stephanie Williams, Planning Services Manager Reviewed by: Nick Zornes, Development Services Director Approved by: Gabriel Engeland, City Manager
Attachment(s):

1. Draft Resolution No. 2023-XX

2. Housing Element Annual Progress Report
Initiated by:

City Council.

Fiscal Impact:

None.

Environmental Review:

The Housing Element Annual Progress Report is a reporting document and does not create or alter policy. The content if provided for information purposes only and is exempt from the requirements of the California Environmental Quality Act (CEQA) per CEQA Guidelines Section 15378(b)(5), which exempts organizational or administrative activities of government that will not result in direct or indirect physical changes in the environment. This informational item provides a means to monitor the implementation of the City of Los Altos’ RHNA Allocation.

Summary:
 Provides the progress made to implementation of the adopted housing element in calendar year 2022, which includes additional housing stock created.

Staff Recommendation:

Adopt the attached draft resolution and authorize staff to submit the annual progress report to HCD.
140
Agenda Item # 8.

Subject: 2022 Housing Element Annual Progress Report
March 28, 2023 Page 2
Purpose
Government Code section 65400 requires the planning agency to provide this report to the legislative body (City Council) and HCD by April 1 of each year. The statute does not specify in which order they be provided, and HCD does not require the report to be submitted to the legislative body prior to submitting it to HCD. HCD recommends you provide the report to your legislative body prior to sending it to HCD. Staff is providing the City Council the opportunity to review the Annual Progress Report prior to submission.

Background
The California Department of Housing and Community Development (HCD) requires jurisdictions to submit the Housing Element Annual Progress Report (APR), on prescribed tables, directly to HCD which also covers activities and accomplishments from the calendar year (2022). Timely submission of the annual report to HCD fulfills statutory requirements to report certain housing information, including the local agency’s progress in meeting its share of regional housing needs and local efforts to remove governmental constraints to the development of housing. Additionally, the annual report gives the State of California the opportunity to identify statewide trends in land use decision making and how local planning and development activities relate to statewide planning goals and policies.

Discussion/Analysis
The Los Altos 2022 APR is attached. To ensure accountability with respect to housing production, each site is identified by assessor’s parcel number, and all milestones occurring in 2022 are indicated by date including submittal for planning entitlements, approval of planning entitlements, issuance of building permits, and issuance of certificates of occupancy/final inspections. The report also tracks affordability and if units are deed restricted to specified affordability levels.

Progress on Housing Element program implementation is summarized toward the end of the APR.

Housing element programs are listed with a brief explanation regarding progress made in the reporting year.

In calendar year 2022, the City of Los Altos issued Building Permits for a total of 62 new dwelling units. That number is the amount of units that will be accounted for the city’s 5th Cycle RHNA Allocation.

For reporting year 2022 the following is being reported to HCD:
141
Agenda Item # 8.

Subject: 2022 Housing Element Annual Progress Report
March 28, 2023 Page 3
Building Permits Issued (for new units only):

Comprehensive accounting of all progress towards RHNA in calendar year 2022 (for new units only):

SFA = Single Family Attached
SFD = Single Family Dwelling
2 to 4 = Two to Four Unit Development
5+ = Five Plus Unit Development
ADU = Accessory Dwelling Unit or Junior Accessory Dwelling Unit MH = Mobile Home
142
Agenda Item # 8.

RESOLUTION NO. 2023-XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LOS ALTOS

ACCEPTING THE HOUSING ELEMENT ANNUAL PROGRESS REPORT FOR CALENDAR YEAR 2022 AUTHORIZING STAFF TO SUBMIT THE REPORT TO THE

CALFORNIA DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT WHEREAS, California Government Code Section 65400(2) requires the planning agency to provide an annual report to the City Council, and the State Department of Housing and Community Development (HCD) regarding progress toward implementation of the housing element of the general plan; and
WHEREAS, planning staff has prepared an annual progress report for the calendar year 2022, utilizing the prescribed forms and instructions provided by the State Department of Housing and Community Development; and
WHEREAS, the City Council held a duly noticed public meeting on March 28, 2023; and NOW THEREFORE, BE IT RESOLVED, that the City Council of the City of Los Altos hereby receives and accepts the annual progress report on the Housing Element, attached and incorporated by reference herein, and authorizes staff to forward the report to the State Department of Housing and Community Development pursuant to Government Code Section 65400(2).

I HEREBY CERTIFY that the foregoing is a true and correct copy of a resolution passed and adopted by the City Council of the City of Los Altos at a meeting thereof on the 28th day of March 2023 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
___________________________
Sally Meadows, MAYOR
Attest:
_____________________________
Angel Rodriguez, INTERIM CITY CLERK
143
Agenda Item # 8.

Jurisidiction Name
Reporting Calendar Year
First Name
Last Name
Title Click here to download APR Instructions
Email
Phone
Street Address
City
Zipcode
1_23_23
Optional: Click here to import last year's data. This is best used when the workbook is new and empty. You will be prompted to pick an old workbook to import from. Project and program data will be copied exactly how it was entered in last year's form and must be updated. If a project is no longer has any reportable activity, you may delete the project by selecting a cell in the row and typing ctrl + d.
1 North San Antonio Road
Los Altos
94022
Please Start Here
General Information
2022
Los Altos
Contact Information
Nick
Zornes
Development Services Director
[email protected]
6509472625
Mailing Address
Annual Progress Report January 2020
144
Agenda Item # 8.

Optional: This runs a macro which checks to ensure all required fields are filled out. The macro will create two files saved in the same directory this APR file is saved in. One file will be a copy of the APR with highlighted cells which require information. The other file will be list of the problematic cells, along with a description of the nature of the error.

Optional: Save before running. This copies data on Table A2, and creates another workbook with the table split across 4 tabs, each of which can fit onto a single page for easier printing. Running this macro will remove the comments on the column headers, which contain the instructions. Do not save the APR file after running in order to preserve comments once it is reopened.

Optional: This macro identifies dates entered that occurred outside of the reporting year. RHNA credit is only given for building permits issued during the reporting year.

Link to the online system: https://apr.hcd.ca.gov/APR/login.do Submittal Instructions
Please save your file as Jurisdictionname2022 (no spaces). Example: the city of San Luis Obispo would save their file as SanLuisObispo2022 Housing Element Annual Progress Reports (APRs) forms and tables must be submitted to HCD and the Governor's Office of Planning and Research (OPR) on or before April 1 of each year for the prior calendar year; submit separate reports directly to both HCD and OPR pursuant to Government Code section 65400. There are two options for submitting APRs:

1. Online Annual Progress Reporting System - Please see the link to the online system to the left. This allows you to upload the completed APR form into directly into HCD’s database limiting the risk of errors. If you would like to use the online system, email [email protected] and HCD will send you the login information for your jurisdiction. Please note: Using the online system only provides the information to HCD. The APR must still be submitted to OPR. Their email address is [email protected].

2. Email - If you prefer to submit via email, you can complete the excel Annual Progress Report forms and submit to HCD at [email protected] and to OPR at [email protected]. Please send the Excel workbook, not a scanned or PDF copy of the tables.
145
Agenda Item # 8.

Jurisdiction Los Altos ANNUAL ELEMENT PROGRESS REPORT Note: "+" indicates an optional field Reporting Year 2022 (Jan. 1 - Dec. 31) Housing Element Implementation Planning Period 5th Cycle 01/31/2015 - 01/31/2023
Date
Application
Submitted
Total
Approved
Units by
Project
Total
Disapproved
Units by
Project
Streamlining
2 3 4 6 7 8 9
Prior APN+ Current APN Street Address Project Name+ Local Jurisdiction Tracking ID+
Unit Category
(SFA,SFD,2 to
4,5+,ADU,MH)
Tenure
R=Renter
O=Owner
Date
Application
Submitted+
(see
instructions)
Very LowIncome Deed
Restricted
Very LowIncome Non
Deed
Restricted
Low-Income
Deed
Restricted
Low-Income
Non Deed
Restricted
ModerateIncome
Deed
Restricted
ModerateIncome
Non Deed
Restricted
Above
ModerateIncome
Total PROPOSED
Units by Project
Total

APPROVED
Units by project
Total

DISAPPROVED
Units by Project
Was APPLICATION

SUBMITTED
Pursuant to GC
65913.4(b)?
(SB 35
Streamlining)
Ddi the housing
development
application seek
incentives or
concessions
pursuant to
Government Code
section 65915?
Summary Row: Start Data Entry Below 61 5 60 33 6 55 241 461 382 0 17024041 215 ANGELA DR ADU22-0001 ADU R 1/12/2022 1 1 1 0 No No 17036044 305 GORDON WAY ADU22-0002 ADU R 1/17/2022 1 1 1 0 No No 34247004 2375 FRIARS LN ADU22-0003 ADU R 1/16/2022 1 1 1 0 No No 34207003 1965 LAVER CT ADU22-0004 ADU R 1/25/2022 1 1 1 0 No No 34210032 1000 CROOKED CREEK DR ADU22-0005 ADU R 1/25/2022 1 1 1 0 No No 19719020 1400 PRITCHETT CT ADU22-0006 ADU R 1/27/2022 1 1 1 0 No No 17026076 245 HAWTHORNE AVE ADU22-0007 ADU R 1/30/2022 1 1 1 0 No No 18918102 775 EDGE LN ADU22-0008 ADU R 1/27/2022 1 1 1 0 No No 17012080 240 DELPHI CIR ADU22-0009 ADU R 2/3/2022 1 1 1 0 No No 31823034 2009 CRIST DR ADU22-0011 ADU R 1/14/2022 1 1 1 0 No No 34223034 1515 CEDAR PL ADU22-0012 ADU R 2/7/2022 1 1 1 0 No No 17011053 736 PANCHITA WAY ADU22-0013 ADU R 2/7/2022 1 1 1 0 No No 17040079 41 MARVIN AVE ADU22-0014 ADU R 1/10/2022 1 1 1 0 No No 18910013 1060 GOLDEN WAY ADU22-0015 ADU R 2/14/2022 1 1 1 0 No No 18949028 834 CAMPBELL AVE ADU22-0016 ADU R 2/17/2022 1 1 1 0 No No 18935063 688 CAMELLIA WAY ADU22-0017 ADU R 1/31/2022 1 1 1 0 No No 17003015 771 JORDAN AVE ADU22-0018 ADU R 2/17/2022 1 1 1 0 No No 16736043 17 LOS ALTOS AVE ADU22-0019 ADU R 2/17/2022 1 1 1 0 No No 16743038 390 JUANITA WAY ADU22-0020 ADU R 2/6/2022 1 1 1 0 No No 16730005 108 CORONADO AVE ADU22-0022 ADU R 2/23/2022 1 1 1 0 No No 17020047 670 SPARGUR DR ADU22-0024 ADU R 2/26/2022 1 1 1 0 No No 17023079 20 DIOR TER ADU22-0025 ADU R 2/26/2022 1 1 1 0 No No 17037048 561 GABILAN ST ADU22-0026 ADU R 3/1/2022 1 1 1 0 No No 16730004 120 CORONADO AVE ADU22-0027 ADU R 3/4/2022 1 1 1 0 No No 17019011 390 CECELIA WAY ADU22-0028 ADU R 3/4/2022 1 1 1 0 No No 34238022 1180 ST CHARLES CT ADU22-0029 ADU R 3/4/2022 1 1 1 0 No No 17031023 118 HIGGINS AVE ADU22-0031 ADU R 3/8/2022 1 1 1 0 No No 19339020 1206 PAYNE DR ADU22-0033 ADU R 3/8/2022 1 1 1 0 No No 17031021 138 HIGGINS AVE ADU22-0034 ADU R 3/9/2022 1 1 1 0 No No 18952058 500 BENVENUE AVE ADU22-0035 ADU R 3/10/2022 1 1 1 0 No No 34209005 1385 MONTCLAIRE CT ADU22-0036 ADU R 3/5/2022 1 1 1 0 No No 17036037 331 EDNA CT ADU22-0037 ADU R 3/6/2022 1 1 1 0 No No 17034031 496 EDITH AVE ADU22-0038 ADU R 3/15/2022 1 1 1 0 No No 17020007 641 SPARGUS DR ADU22-0039 ADU R 3/15/2022 1 1 1 0 No No Table A
Cells in grey contain auto-calculation formulas
1 5
Project Identifier Unit Types Proposed Units - Affordability by Household Incomes Density Bo Applica
10 Housing Development Applications Submitted
146
Agenda Item # 8.

Jurisdiction Los Altos ANNUAL ELEMENT PROGRESS REPORT
Reporting Year 2022 (Jan. 1 - Dec. 31) Housing Element Implementation Cells in grey contain auto-calculation formulas Planning Period 5th Cycle 01/31/2015 01/31/2023
Table A2
Streamlining Infill
Housing without Financial
Assistance or Deed
Restrictions
Term of Affordability
or Deed Restriction Notes
2 3 5 6 8 9 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Prior APN+ Current APN Street Address Project Name+ Local Jurisdiction Tracking ID+
Unit Category
(SFA,SFD,2 to
4,5+,ADU,MH)
Tenure
R=Renter
O=Owner
Very LowIncome Deed
Restricted
Very LowIncome Non
Deed
Restricted
Low- Income
Deed
Restricted
Low- Income
Non Deed
Restricted
ModerateIncome Deed
Restricted
ModerateIncome Non
Deed
Restricted
Above
ModerateIncome
Entitlement
Date Approved # of Units issued
Entitlements
Very LowIncome Deed
Restricted
Very LowIncome Non
Deed
Restricted
Low- Income
Deed
Restricted
Low- Income
Non Deed
Restricted
ModerateIncome Deed
Restricted
ModerateIncome Non
Deed
Restricted
Above
ModerateIncome
Building Permits
Date Issued
# of Units Issued
Building Permits
Very LowIncome Deed
Restricted
Very LowIncome Non
Deed
Restricted
LowIncome
Deed
Restricted
LowIncome
Non Deed
Restricted
ModerateIncome
Deed
Restricted
ModerateIncome Non
Deed
Restricted
Above
ModerateIncome
Certificates of
Occupancy or other
forms of readiness
(see instructions)
Date Issued
# of Units
issued
Certificates of
Occupancy or
other forms of
readiness
How many of
the units were
Extremely Low
Income?+
Was Project
APPROVED using
GC 65913.4(b)?
(SB 35
Streamlining)
Y/N
Infill Units?
Y/N+
Assistance Programs
for Each Development
(may select multiple -
see instructions)
Deed Restriction
Type
(may select
multiple - see
instructions)
For units affordable without
financial assistance or deed
restrictions, explain how the
locality determined the units
were affordable
(see instructions)
Term of Affordability or
Deed Restriction
(years) (if affordable in
perpetuity enter 1000)+
Number of
Demolished/De
stroyed Units
Demolished or
Destroyed Units
Demolished/D
estroyed Units
Owner or
Renter
Total Density Bonus Applied
to the Project (Percentage
Increase in Total Allowable
Units or Total Maximum
Allowable Residential Gross
Floor Area)
Number of Other
Incentives,
Concessions, Waivers,
or Other Modifications
Given to the Project
(Excluding Parking
Waivers or Parking
Reductions)
List the incentives,
concessions,
waivers, and
modifications
(Excluding Parking
Waivers or
Parking
Modifications)
Did the project receive
a reduction or waiver of
parking standards? (Y/N)
Notes+
Summary Row: Start Data Entry Below 60 5 60 34 7 57 238 461 0 3 0 29 0 24 6 62 0 4 0 12 0 19 5 40 45 0 0 0 31809041 31809041 1500 RICHARDSON AVE ADU21-0071 ADU R 1 5/26/2022 1 0 0 0 N Y ABAG Regional Affordability Analysis
17013062 17013062 66 SAN JUAN CT ADU21-0077 ADU R 1 3/16/2022 1 0 0 0 N Y ABAG Regional Affordability Analysis
18949026 18949026 460 HARRINGTON CT ADU21-0078 ADU R 1 1/20/2022 1 0 0 0 N Y ABAG Regional Affordability Analysis
17029063 17029063 26 AVALON DR ADU21-0080 ADU R 1 2/2/2022 1 0 1 0 0 0 0 0 5/16/2022 1 0 0 N Y ABAG Regional Affordability Analysis
31825021 31825021 1670 JONES LN ADU21-0081 ADU R 1 2/22/2022 1 0 0 0 N Y ABAG Regional Affordability Analysis
16742009 16742009 541 GUADALUPE DR ADU21-0082 ADU R 1 2/2/2022 1 0 0 0 1 0 0 0 5/19/2022 1 1 11/1/2022 1 0 N Y ABAG Regional Affordability Analysis
16744032 16744032 466 RAQUEL LN ADU21-0083 ADU R 1 6/2/2022 1 0 0 0 N Y ABAG Regional Affordability Analysis
17032019 17032019 623 ALMOND AVE ADU21-0084 ADU R 1 3/10/2022 1 0 0 0 N Y ABAG Regional Affordability Analysis
34203058 34203058 22885 ASPEN DR ADU21-0085 ADU R 1 2/20/2022 1 0 0 0 N Y ABAG Regional Affordability Analysis
17022090 17022090 331 SUNKIST CT ADU21-0086 ADU R 1 4/8/2022 1 0 0 0 N Y ABAG Regional Affordability Analysis
31802036 31802036 1635 KENSINGTON AVE ADU21-0087 ADU R 1 2/10/2022 1 0 0 0 1 0 0 0 11/28/2022 1 0 0 N Y ABAG Regional Affordability Analysis
16715022 16715022 217 PASA ROBLES AVE ADU21-0088 ADU R 1 3/21/2022 1 0 0 0 1 0 0 0 8/23/2022 1 0 0 N Y ABAG Regional Affordability Analysis
31819020 31819020 1663 NEWCASTLE DR ADU21-0089 ADU R 1 2/22/2022 1 0 0 0 1 0 0 0 12/19/2022 1 0 0 N Y ABAG Regional Affordability Analysis
33603030 33603030 899 MADONNA WAY ADU21-0090 ADU R 1 8/3/2022 1 0 0 0 N Y ABAG Regional Affordability Analysis
19340017 19340017 1030 ROSEMONT AVE ADU21-0091 ADU R 1 1/14/2022 1 0 0 0 1 0 0 0 12/1/2022 1 0 0 N Y ABAG Regional Affordability Analysis
19718050 19718050 1411 MARINOVICH WAY ADU21-0092 ADU R 1 4/1/2022 1 0 0 0 1 0 0 0 8/30/2022 1 0 0 N Y ABAG Regional Affordability Analysis
31815061 31815061 1620 HOLT AVE ADU21-0093 ADU R 1 11/3/2022 1 0 0 0 N Y ABAG Regional Affordability Analysis
31823016 31823016 1730 HOLT AVE ADU21-0094 ADU R 1 3/28/2022 1 0 0 0 N Y ABAG Regional Affordability Analysis
18911032 18911032 918 STANLEY AVE ADU21-0096 ADU R 1 4/1/2022 1 0 0 0 1 0 0 0 7/11/2022 1 1 9/15/2022 1 0 N Y ABAG Regional Affordability Analysis
19704043 19704043 1416 BROOKMILL RD ADU21-0097 ADU R 1 3/17/2022 1 0 0 0 N Y ABAG Regional Affordability Analysis
16720031 16720031 409 VAN BUREN ST ADU21-0099 ADU R 1 1/14/2022 1 0 0 0 1 0 0 0 10/18/2022 1 0 0 N Y ABAG Regional Affordability Analysis
18912015 18912015 955 LINDA VISTA WAY ADU21-0100 ADU R 1 3/9/2022 1 0 0 0 1 0 0 0 10/20/2022 1 0 0 N Y ABAG Regional Affordability Analysis
34211007 34211007 940 ST JOSEPH AVE ADU21-0101 ADU R 1 1/5/2022 1 0 0 0 1 0 0 0 9/19/2022 1 0 0 N Y ABAG Regional Affordability Analysis
17024041 17024041 215 ANGELA DR ADU22-0001 ADU R 1 3/21/2022 1 0 0 0 1 0 0 0 11/21/2022 1 0 0 N Y ABAG Regional Affordability Analysis
17036044 17036044 305 GORDON WAY ADU22-0002 ADU R 1 3/4/2022 1 0 0 0 1 0 0 0 9/15/2022 1 0 0 N Y ABAG Regional Affordability Analysis
34247004 34247004 2375 FRIARS LN ADU22-0003 ADU R 1 5/23/2022 1 0 0 0 N Y ABAG Regional Affordability Analysis
34207003 34207003 1965 LAVER CT ADU22-0004 ADU R 1 4/1/2022 1 0 0 0 1 0 0 0 11/29/2022 1 0 0 N Y ABAG Regional Affordability Analysis
19719020 19719020 1400 PRITCHETT CT ADU22-0006 ADU R 1 2/22/2022 1 0 0 0 1 0 0 0 3/30/2022 1 0 0 N Y ABAG Regional Affordability Analysis
17026076 17026076 245 HAWTHORNE AVE ADU22-0007 ADU R 1 4/9/2022 1 0 0 0 N Y ABAG Regional Affordability Analysis
18918102 18918102 775 EDGE LN ADU22-0008 ADU R 1 8/19/2022 1 0 0 0 N Y ABAG Regional Affordability Analysis
17012080 17012080 240 DELPHI CIR ADU22-0009 ADU R 1 3/1/2022 1 0 0 0 1 0 0 0 9/6/2022 1 0 0 N Y ABAG Regional Affordability Analysis
31823034 31823034 2009 CRIST DR ADU22-0011 ADU R 1 5/10/2022 1 0 0 0 N Y ABAG Regional Affordability Analysis
34223034 34223034 1515 CEDAR PL ADU22-0012 ADU R 1 5/11/2022 1 0 0 0 1 0 0 0 8/17/2022 1 0 0 N Y ABAG Regional Affordability Analysis
17011053 17011053 736 PANCHITA WAY ADU22-0013 ADU R 1 4/25/2022 1 0 0 0 1 0 0 0 6/13/2022 1 0 0 N Y ABAG Regional Affordability Analysis
17040079 17040079 41 MARVIN AVE ADU22-0014 ADU R 1 5/27/2022 1 0 0 0 N Y ABAG Regional Affordability Analysis
18910013 18910013 1060 GOLDEN WAY ADU22-0015 ADU R 1 2/14/2022 1 0 0 0 N Y ABAG Regional Affordability Analysis
18949028 18949028 834 CAMPBELL AVE ADU22-0016 ADU R 1 4/7/2022 1 0 0 0 N Y ABAG Regional Affordability Analysis
18935063 18935063 688 CAMELLIA WAY ADU22-0017 ADU R 1 6/13/2022 1 0 0 0 N Y ABAG Regional Affordability Analysis
17003015 17003015 771 JORDAN AVE ADU22-0018 ADU R 1 6/7/2022 1 0 0 0 1 0 0 0 9/26/2022 1 0 0 N Y ABAG Regional Affordability Analysis
16736043 16736043 17 LOS ALTOS AVE ADU22-0019 ADU R 1 6/6/2022 1 0 0 0 N Y ABAG Regional Affordability Analysis
16743038 16743038 390 JUANITA WAY ADU22-0020 ADU R 1 12/6/2022 1 0 0 0 N Y ABAG Regional Affordability Analysis
16730005 16730005 108 CORONADO AVE ADU22-0022 ADU R 1 9/28/2022 1 0 0 0 0 0 1 0 8/3/2022 1 0 0 N Y ABAG Regional Affordability Analysis
17020047 17020047 670 SPARGUR DR ADU22-0024 ADU R 1 5/16/2022 1 0 0 0 N Y ABAG Regional Affordability Analysis
17023079 17023079 20 DIOR TER ADU22-0025 ADU R 1 8/27/2022 1 0 0 0 N Y ABAG Regional Affordability Analysis
17037048 17037048 561 GABILAN ST ADU22-0026 ADU R 1 5/3/2022 1 0 0 0 N Y ABAG Regional Affordability Analysis
16730004 16730004 120 CORONADO AVE ADU22-0027 ADU R 1 7/27/2022 1 0 0 0 N Y ABAG Regional Affordability Analysis
17019011 17019011 390 CECELIA WAY ADU22-0028 ADU R 1 8/17/2022 1 0 0 0 N Y ABAG Regional Affordability Analysis
34238022 34238022 1180 ST CHARLES CT ADU22-0029 ADU R 1 9/7/2022 1 0 0 0 N Y ABAG Regional Affordability Analysis
17031023 17031023 118 HIGGINS AVE ADU22-0031 ADU R 1 6/14/2022 1 0 0 0 0 0 1 0 7/12/2022 1 1 11/29/2022 1 0 N Y ABAG Regional Affordability Analysis
19339020 19339020 1206 PAYNE DR ADU22-0033 ADU R 1 5/19/2022 1 0 0 0 N Y ABAG Regional Affordability Analysis
17031021 17031021 138 HIGGINS AVE ADU22-0034 ADU R 1 3/31/2022 1 0 0 0 N Y ABAG Regional Affordability Analysis
18952058 18952058 500 BENVENUE AVE ADU22-0035 ADU R 1 4/25/2022 1 0 0 0 N Y ABAG Regional Affordability Analysis
34209005 34209005 1385 MONTCLAIRE CT ADU22-0036 ADU R 1 7/4/2022 1 0 0 0 N Y ABAG Regional Affordability Analysis
17036037 17036037 331 EDNA CT ADU22-0037 ADU R 1 3/6/2022 1 0 0 0 0 0 1 0 8/17/2022 1 0 0 N Y ABAG Regional Affordability Analysis
17034031 17034031 496 EDITH AVE ADU22-0038 ADU R 1 6/9/2022 1 0 0 0 N Y ABAG Regional Affordability Analysis
17020007 17020007 641 SPARGUS DR ADU22-0039 ADU R 1 3/15/2022 1 0 0 0 N Y ABAG Regional Affordability Analysis
18947014 18947014 306 COVINGTON RD ADU22-0040 ADU R 1 5/2/2022 1 0 0 0 N Y ABAG Regional Affordability Analysis
16714028 16714028 476 MUNDELL WAY ADU22-0041 ADU R 1 5/26/2022 1 0 0 0 N Y ABAG Regional Affordability Analysis
19701007 19701007 1477 BROOKMILL RD ADU22-0042 ADU R 1 4/25/2022 1 0 0 0 N Y ABAG Regional Affordability Analysis
17519002 17519002 691 MILVERTON RD ADU22-0044 ADU R 1 7/27/2022 1 0 0 0 N Y ABAG Regional Affordability Analysis
19703040 19703040 1718 OAK AVE ADU22-0045 ADU R 1 4/20/2022 1 0 0 0 N Y ABAG Regional Affordability Analysis
18940084 18940084 625 TERESI LN ADU22-0046 ADU R 1 4/19/2022 1 0 0 0 N Y ABAG Regional Affordability Analysis
19718020 19718020 1485 GRANT RD ADU22-0047 ADU R 1 5/13/2022 1 0 0 0 N Y ABAG Regional Affordability Analysis
31806034 31806034 1370 ENSENADA WAY ADU22-0048 ADU R 1 10/19/2022 1 0 0 0 N Y ABAG Regional Affordability Analysis
17037047 17037047 571 GABILAN ST ADU22-0049 ADU R 1 5/12/2022 1 0 0 0 N Y ABAG Regional Affordability Analysis
34203021 34203021 5350 ARBORETUM DR ADU22-0050 ADU R 1 3/24/2022 1 0 0 0 N Y ABAG Regional Affordability Analysis
17003011 17003011 219 PORTOLA CT ADU22-0051 ADU R 1 7/19/2022 1 0 0 0 N Y ABAG Regional Affordability Analysis
18929056 18929056 755 RAYMUNDO AVE ADU22-0052 ADU R 1 6/21/2022 1 0 0 0 N Y ABAG Regional Affordability Analysis
17011008 17011008 621 LOS NINOS WAY ADU22-0053 ADU R 1 8/31/2022 1 0 0 0 N Y ABAG Regional Affordability Analysis
17025032 17025032 275 EDITH AVE ADU22-0054 ADU R 1 7/27/2022 1 0 0 0 N Y ABAG Regional Affordability Analysis
17024033 17024033 258 MERRITT RD ADU22-0055 ADU R 1 5/24/2022 1 0 0 0 N Y ABAG Regional Affordability Analysis
18945023 18945023 1074 RIVERSIDE DR ADU22-0056 ADU R 1 4/11/2022 1 0 0 0 N Y ABAG Regional Affordability Analysis
16719012 16719012 830 LAVERNE WAY ADU22-0057 ADU R 1 1/30/2022 1 0 0 0 N Y ABAG Regional Affordability Analysis
18951049 18951049 325 SAN LUIS AVE ADU22-0058 ADU R 1 6/30/2022 1 0 0 0 N Y ABAG Regional Affordability Analysis
18956020 18956020 680 BERRY AVE ADU22-0059 ADU R 1 8/6/2022 1 0 0 0 N Y ABAG Regional Affordability Analysis
31819014 31819014 1613 PARKHILLS AVE ADU22-0060 ADU R 1 8/11/2022 1 0 0 0 N Y ABAG Regional Affordability Analysis
16728027 16728027 17 ALMA CT ADU22-0062 ADU R 1 9/2/2022 1 0 0 0 N Y ABAG Regional Affordability Analysis
16728015 16728015 585 CHERRY AVE ADU22-0063 ADU R 1 9/20/2022 1 0 0 0 N Y ABAG Regional Affordability Analysis
17016023 17016023 530 VALENCIA DR ADU22-0064 ADU R 1 9/19/2022 1 0 0 0 N Y ABAG Regional Affordability Analysis
17516011 17516011 595 ORANGE AVE ADU22-0065 ADU R 1 7/27/2022 1 0 0 0 N Y ABAG Regional Affordability Analysis
31810041 31810041 1501 MORTON AVE ADU22-0066 ADU R 1 6/17/2022 1 0 0 0 N Y ABAG Regional Affordability Analysis
17037033 17037033 548 SHIRLYNN CT ADU22-0067 ADU R 1 6/28/2022 1 0 0 0 N Y ABAG Regional Affordability Analysis
19718013 19718013 1365 RANCHITA DR ADU22-0069 ADU R 1 2/22/2022 1 0 0 0 0 0 1 0 11/17/2022 1 0 0 N Y ABAG Regional Affordability Analysis
17016029 17016029 83 SEVILLA DR ADU22-0070 ADU R 1 12/5/2022 1 0 0 0 N Y ABAG Regional Affordability Analysis
31821009 31821009 1747 KIRCHER CT ADU22-0071 ADU R 1 7/20/2022 1 0 0 0 0 0 1 0 11/29/2022 1 0 0 N Y ABAG Regional Affordability Analysis
17004025 17004025 727 DISTEL DR ADU22-0072 ADU R 1 7/1/2022 1 0 0 0 N Y ABAG Regional Affordability Analysis
17014010 17014010 39 ALVARADO AVE ADU22-0073 ADU R 1 6/8/2022 1 0 0 0 N Y ABAG Regional Affordability Analysis
18950046 18950046 736 CAMPBELL AVE ADU22-0074 ADU R 1 10/1/2022 1 0 0 0 N Y ABAG Regional Affordability Analysis
17001065 17001065 961 SHERWOOD AVE ADU22-0075 ADU R 1 8/19/2022 1 0 0 0 0 0 1 0 11/29/2022 1 0 0 N Y ABAG Regional Affordability Analysis
18946036 18946036 1072 ECHO DR ADU22-0077 ADU R 1 7/11/2022 1 0 0 0 N Y ABAG Regional Affordability Analysis
18926018 18926018 738 SUNSHINE CT ADU22-0079 ADU R 1 8/1/2022 1 0 0 0 N Y ABAG Regional Affordability Analysis
17001007 17001007 80 CHESTER CIR ADU22-0080 ADU R 1 11/8/2022 1 0 0 0 N Y ABAG Regional Affordability Analysis
18954032 18954032 505 CLARK CT ADU22-0081 ADU R 1 9/18/2022 1 0 0 0 N Y ABAG Regional Affordability Analysis
16743034 16743034 381 JUANITA WAY ADU22-0082 ADU R 1 12/9/2022 1 0 0 0 N Y ABAG Regional Affordability Analysis
17511048 17511048 400 OLD OAK CT ADU22-0084 ADU R 1 9/20/2022 1 0 0 0 N Y ABAG Regional Affordability Analysis
17028045 17028045 311 HAWTHORNE AVE ADU22-0086 ADU R 1 8/4/2022 1 0 0 0 N Y ABAG Regional Affordability Analysis
17026033 17026033 160 GORDON WAY ADU22-0087 ADU R 1 1/16/2023 1 0 0 0 N Y ABAG Regional Affordability Analysis
19716059 19716059 1550 CANTERBURY WAY ADU22-0088 ADU R 1 10/21/2022 1 0 0 0 N Y ABAG Regional Affordability Analysis
16730019 16730019 131 GARLAND WAY ADU22-0089 ADU R 1 8/27/2022 1 0 0 0 N Y ABAG Regional Affordability Analysis
18941056 18941056 814 PARMA WAY ADU22-0090 ADU R 1 1/27/2023 1 0 0 0 N Y ABAG Regional Affordability Analysis
17012057 17012057 253 DELPHI CIR ADU22-0091 ADU R 1 9/22/2022 1 0 0 0 N Y ABAG Regional Affordability Analysis
17033005 17033005 145 HIGGINS AVE ADU22-0092 ADU R 1 8/18/2022 1 0 0 0 N Y ABAG Regional Affordability Analysis
17017017 17017017 270 ALVARADO AVE ADU22-0095 ADU R 1 10/1/2022 1 0 0 0 N Y ABAG Regional Affordability Analysis
18958070 18958070 705 VISTA GRANDE AVE ADU22-0096 ADU R 1 1/20/2023 1 0 0 0 N Y ABAG Regional Affordability Analysis
31805037 31805037 1882 AUSTIN AVE ADU22-0097 ADU R 1 12/5/2022 1 0 0 0 N Y ABAG Regional Affordability Analysis
16718017 16718017 212 DEL MONTE AVE ADU22-0098 ADU R 1 9/29/2022 1 0 0 0 N Y ABAG Regional Affordability Analysis
16727048 16727048 464 CHERRY AVE ADU22-0099 ADU R 1 2/7/2023 1 0 0 0 N Y ABAG Regional Affordability Analysis
17013031 17013031 162 PORTOLA AVE ADU22-0100 ADU R 1 11/28/2022 1 0 0 0 N Y ABAG Regional Affordability Analysis
34202049 34202049 2256 DEODARA DR ADU22-0101 ADU R 1 12/5/2022 1 0 0 0 N Y ABAG Regional Affordability Analysis
18934045 18934045 96 SPRINGER RD ADU22-0102 ADU R 1 11/16/2022 1 0 0 0 N Y ABAG Regional Affordability Analysis
31809043 31809043 1530 RICHARDSON AVE ADU22-0103 ADU R 1 2/8/2023 1 0 0 0 N Y ABAG Regional Affordability Analysis
16731032 16731032 270 SURREY PL ADU22-0105 ADU R 1 11/30/2022 1 0 0 0 N Y ABAG Regional Affordability Analysis
18950031 18950031 453 ROSITA AVE ADU22-0112 ADU R 1 1/18/2023 1 0 0 0 N Y ABAG Regional Affordability Analysis
17004051 17004051 330 DISTEL CIR D22-0002
5+ R 57 31 2 9/20/2022
90 0 0 45 N Y Other DB, INC 99 230.0% 7
Development
Standards
Modification
Yes
Measure A - Santa
Clara County
Affordable Housing
Bond
18945023 18945023 1074 RIVERSIDE DR DR22-0057 SFD O 1 11/22/2022 1 0 0 0 N Y 16723120 16723120 682 SAN ANTONIO RD SB922-0008 SFD O 1 11/17/2022 1 0 0 0 N Y 16723120 16723120 682 SAN ANTONIO RD SB922-0008 SFD O 1 11/17/2022 1 0 0 0 N Y 16741052 16741052 376 1St ST D19-0009
5+ O 3 12 4/26/2022
15 0 0 0 N Y DB, INC 55 20.0% 5
Development
Standards
Modification
Yes
16741029 16741029 355 1ST ST D21-0003 5+ O 3 4 43 6/28/2022 50 0 0 0 N Y DB, INC 55 35.0% 1
Development
Standards
Modification
Yes
17004066 17004066 5150 EL CAMINO REAL MOD22-0003 5+ R 29 167 8/23/2022 196 0 0 0 N Y DB, INC 99 35.0% 2 On-Site Improvements Yes
Note: "+" indicates an optional field
Housing with Financial Assistance
and/or Deed Restrictions Project Identifier Demolished/Destroyed Units Annual Building Activity Report Summary - New Construction, Entitled, Permits and Completed Units Density Bonus
1 Unit Types Affordability by Household Incomes - Completed Entitlement Affordability by Household Incomes - Building Permits Affordability by Household Incomes - Certificates of Occupancy 4 7 10
147
Agenda Item # 8.

Jurisdiction Los Altos ANNUAL ELEMENT PROGRESS REPORT
Reporting Year 2022 (Jan. 1 - Dec. 31) Housing Element Implementation Cells in grey contain auto-calculation formulas Planning Period 5th Cycle 01/31/2015 01/31/2023
Note: "+" indicates an optional field
16733051 17014019 730 VERA CRUZ AVE UNIT A BLD21-01430 ADU R
0 1 5/10/202211 10/11/2022
1 0N
Y ABAG Regional Affordability
Analysis
16736025 18950044 494 ROSITA AVE UNIT A BLD21-01207 ADU R
0 1 2/2/202211 11/17/202210NY ABAG Regional Affordability Analysis
17020076 16714004 1031 ESTRELLITA WAY BLD22-00103 ADU
R
0 1 12/15/2022100
N
Y ABAG Regional Affordability
Analysis
17022039 16721005 779 SANTA RITA AVE UNIT A BLD22-00155 ADU R
0 1 5/16/2022100NY ABAG Regional Affordability
Analysis
17027028 16721046 771 WESTMINSTER LN BLD22-01202 ADU
R
0 1 11/28/2022100
N
Y ABAG Regional Affordability
Analysis
17027036 16722014 168 W Portola Ave UNIT A BLD21-01804 ADU R
0 1 3/21/2022100NY ABAG Regional Affordability
Analysis
17043023 16723004 55 BELDEN DR BLD21-01888 ADU
R
0 1 4/14/202210
0N
Y ABAG Regional Affordability
Analysis
17516002 16733051 370 YERBA SANTA AVE BLD21-01352 ADU
R
0 1 1/13/2022100NY ABAG Regional Affordability
Analysis
17517046 16736025 72 VIEW ST UNIT A BLD21-02031 ADU
R
0 1 7/19/202210
0N
Y ABAG Regional Affordability
Analysis
18909051 17020076 693 HOLLINGSWORTH DR UNIT A BLD22-00445 ADU R
0 1 3/29/2022100NY ABAG Regional Affordability
Analysis
18918001 17022039 270 SUNKIST LN BLD21-01085 ADU
R
0 1 3/10/202210
0N
Y ABAG Regional Affordability
Analysis
18929052 17027028 318 S GORDON WAY BLD21-01980 ADU
R
0 1 5/6/2022100NY ABAG Regional Affordability
Analysis
18937068 17027036 215 LYELL ST UNIT A BLD21-01840 ADU
R
0 1 7/18/2022100NY ABAG Regional Affordability
Analysis
18939010 17043023 20 ANGELA DR UNIT A BLD21-01579 ADU
R
0 1 1/12/2022100NY ABAG Regional Affordability
Analysis
18941043 17516002 502 PALM AVE UNIT A BLD21-01039 ADU
R
0 1 2/11/202210
0NY ABAG Regional Affordability
Analysis
18941051 17517046 789 ORANGE AVE UNIT A BLD21-01136 ADU R
0 1 1/31/2022100NY ABAG Regional Affordability
Analysis
18946035 18909051 951 SEENA AVE BLD21-02051 ADU
R
0 1 9/20/202210
0NY ABAG Regional Affordability
Analysis
18952060 18918001 817 BERRY AVE UNIT A BLD22-01395 ADU
R
0 1 8/24/2022100NY ABAG Regional Affordability
Analysis
18953033 18929052 789 RAYMUNDO AVE UNIT A BLD21-01643 ADU R
0 1 3/2/2022100NY ABAG Regional Affordability
Analysis
19327043 18937068 698 SAN MARTIN PL UNIT A BLD21-01243 ADU R
0 1 1/13/2022100NY ABAG Regional Affordability
Analysis
19341023 18939010 633 ARBOLEDA DR UNIT A BLD21-01560 ADU R
0 1 4/8/2022100NY ABAG Regional Affordability
Analysis
19343011 18941043 918 ECHO DR UNIT A BLD21-00979 ADU
R
0 1 2/3/2022100NY ABAG Regional Affordability
Analysis
19703009 18941051 853 CAMPBELL AVE UNIT A BLD22-00374 ADU R
0 1 3/11/2022100NY ABAG Regional Affordability
Analysis
19705016 18946035 1052 ECHO DR UNIT A BLD21-02036 ADU
R
0 1 5/31/2022100NY ABAG Regional Affordability
Analysis
19716027 18952060 520 BENVENUE AVE BLD21-01377 ADU
R
0 1 2/9/2022100NY ABAG Regional Affordability
Analysis
31802042 18953033 425 BENVENUE AVE BLD21-01999 ADU
R
0 1 12/5/2022100
NY ABAG Regional Affordability
Analysis
31823006 19327043 960 HAYMAN PL UNIT A BLD21-01970 ADU
R
0 1 4/21/2022100
NY ABAG Regional Affordability
Analysis
33602058 19341023 1450 MCKENZIE AVE UNIT A BLD22-00237 ADU R
0 1 6/28/202210
0NY ABAG Regional Affordability
Analysis
33602062 19343011 1243 CARMEL TER UNIT A BLD21-01513 ADU R
0 1 7/7/2022100
NY ABAG Regional Affordability
Analysis
17026078 19703009 1640 ELMHURST DR UNIT A BLD21-01551 ADU R
0 1 4/5/2022100N
Y ABAG Regional Affordability
Analysis
16712033 19705016 1745 SELIG LN UNIT A BLD21-01362 ADU
R
0 1 6/14/20221
00NY ABAG Regional Affordability
Analysis
16716010 19716027 1544 KATHY LN BLD22-00243 ADU
R
0 1 8/23/20221
00NY ABAG Regional Affordability
Analysis
16730042 31802042 1210 FREMONT AVE UNIT A BLD21-02147 ADU R
0 1 5/19/2022100NY ABAG Regional Affordability
Analysis
16732045 31823006 1933 FALLEN LEAF LN UNIT A BLD21-00091 ADU R
0 1 6/13/2022100NY ABAG Regional Affordability
Analysis
16735007 33602058 812 NASH RD UNIT A BLD21-01348 ADU
R
0 1 1/19/2022100NY ABAG Regional Affordability
Analysis
16742010 33602062 800 S EL MONTE AVE BLD22-00267 ADU
R
0 1 10/27/2022100NY ABAG Regional Affordability
Analysis
16743037 17026078 230 VALLEY ST BLD22-00629 ADU
R
0 1 10/25/2022100NY ABAG Regional Affordability
Analysis
17003007 16712033 1023 MERCEDES AVENUE UNIT A BLD21-00046 ADU R
0 4/27/2021
01 2/17/202210NY ABAG Regional Affordability
Analysis
17004012 16716010 132 LOUCKS AVE BLD19-00416 ADU
R
0 7/24/2019
01 5/24/202210NY ABAG Regional Affordability
Analysis
17010020 16730042 140 A HAMILTON CT BLD20-01494 ADU
R
0 6/14/2021
01 7/5/202210NY ABAG Regional Affordability
Analysis
17012017 16732045 324 CHERRY AVE BLD19-01630 ADU
R
0 9/17/2020
01 6/6/202210NY ABAG Regional Affordability
Analysis
17013061 16735007 162 ALTA VISTA AVE BLD19-01058 ADU
R
0 3/5/2020
01 2/11/202210NY ABAG Regional Affordability
Analysis
17022045 16742010 561 GUADALUPE DR BLD20-01135 ADU
R
0 3/26/2021
01 4/7/202210NY ABAG Regional Affordability
Analysis
17028025 16743037 400 A JUANITA WAY BLD21-00398 ADU
R
0 8/3/2021
01 9/28/202210NY ABAG Regional Affordability
Analysis
17031011 17003007 261 PORTOLA CT, UNIT A BLD20-01317 ADU R
0 7/28/2021
01 2/24/202210NY ABAG Regional Affordability
Analysis
17032005 17004012 721 CASITA WAY BLD19-01237 ADU
R
0 7/6/2020
01 4/7/202210NY ABAG Regional Affordability
Analysis
18911014 17010020 431 CASITA CT BLD20-00724 ADU
R
0 3/16/2021
01 6/29/202210NY ABAG Regional Affordability
Analysis
18913008 17012017 150 CATALINA CT BLD19-00161 ADU
R
0 7/8/2019
01 3/9/202210NY ABAG Regional Affordability
Analysis
18929029 17013061 42 SAN JUAN CT BLD20-00798 ADU
R
0 7/20/2020
01 5/26/202210
NY ABAG Regional Affordability
Analysis
18935066 17022045 231 A ALICIA WAY BLD21-00271 ADU
R
0 6/28/2021
01 7/13/202210
NY ABAG Regional Affordability
Analysis
18936034 17028025 21 A OSAGE AVE BLD19-01797 ADU
R
0 5/19/2021
01 8/24/20221
0NY ABAG Regional Affordability
Analysis
18940017 17031011 121 DOUD DR UNIT A BLD21-01328 ADU
R
0 10/28/2021
01 6/28/20221
0NY ABAG Regional Affordability
Analysis
18957004 17032005 584 JAY ST BLD20-00222 ADU
R
0 5/5/2020
01 4/27/202210
NY ABAG Regional Affordability
Analysis
19328002 18911014 1035 RUSSELL AVE UNIT A BLD21-01171 ADU R
0 12/20/2021
01 8/10/202210
NY ABAG Regional Affordability
Analysis
19339034 18913008 958 A ALTOS OAKS DR BLD20-01598 ADU
R
0 4/21/2021
0 1 5/16/202210NY ABAG Regional Affordability
Analysis
19342038 18929029 747 A ARROYO RD BLD21-00182 ADU
R
0 5/7/2021
01 6/15/2022
10NY ABAG Regional Affordability
Analysis
19703038 18935066 40 S SPRINGER RD BLD21-01130 ADU
R
0 9/22/2021
01 6/16/2022
10NY ABAG Regional Affordability
Analysis
19704050 18936034 654 A SPRINGER TER BLD21-00493 ADU
R
0 7/13/2021
01 6/2/2022
10NY ABAG Regional Affordability
Analysis
19719002 18940017 682 ARBOLEDA DR, UNIT A BLD20-01493 ADU R
0 6/2/2021
01 4/13/2022
10NY ABAG Regional Affordability
Analysis
31802056 18957004 251 COVINGTON RD Unit A BLD21-00424 ADU R
0 8/30/2021
01 10/25/2022
10NY ABAG Regional Affordability
Analysis
31802056 19328002 1057 COVINGTON RD UNIT A BLD21-00665 ADU R
0 10/8/2021
01 10/7/2022
10NY ABAG Regional Affordability
Analysis
31818074 19339034 1345 OAKHURST AVENUE UNIT A BLD21-00077 ADU R
0 6/3/2021
01 2/10/2022
10NY ABAG Regional Affordability
Analysis
34208033 19342038 1359 A MCKENZIE AVE BLD21-00060 ADU
R
0 4/8/2021
01 7/13/202210NY ABAG Regional Affordability
Analysis
16714075 19703038 1706 OAK AVE UNIT A BLD21-01186 ADU
R
0 11/2/2021
01 10/13/202210NY ABAG Regional Affordability
Analysis
16714075 19704050 1473 RAVENSWOOD DR BLD21-00442 ADU
R
0 6/17/2021
01 6/16/202210NY ABAG Regional Affordability
Analysis
19719002 48 A MIRAVALLE AVE BLD20-01231 ADUR
0 7/15/2021
01 4/21/202210NY ABAG Regional Affordability
Analysis
31802056 75 RICHARDSON AVE BLD20-01583 ADUR
0 3/18/2021
01 1/25/202210NY ABAG Regional Affordability
Analysis
31802056 RICHARDSON AVE UNIT A BLD21-00787 ADUR
0 8/11/2021
01 11/15/2022
10NY ABAG Regional Affordability
Analysis
31818074 BEN ROE AVENUE UNIT A BLD20-01636 ADU
R
0 5/20/2021
01 10/31/2022
10NY ABAG Regional Affordability
Analysis
34208033 40 MONTE VERDE CT BLD21-00553 ADU
R
0 7/7/2021
01 5/11/2022
10NY ABAG Regional Affordability
Analysis
16714075 437 MUNDELL WAY BLD19-01847 ADU
R
0 5/18/2020
01 5/17/2022
10NY ABAG Regional Affordability
Analysis
16714075 437 MUNDELL WAY BLD20-00387 ADU
R
0 5/18/2020
01 5/17/2022
10NY ABAG Regional Affordability
Analysis
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
148
Agenda Item # 8.

Jurisdiction Los Altos ANNUAL ELEMENT PROGRESS REPORT
Reporting Year 2022 (Jan. 1 - Dec. 31) Housing Element Implementation Planning Period 5th Cycle 01/31/2015 - 01/31/2023
1 Projection Period 3 4
RHNA Allocation by
Income Level 2015 2016 2017 2018 2019 2020 2021 2022 2023 Total Units to Date (all years) Total Remaining
RHNA by Income
Level
Deed Restricted - 1 - - - - - - -
Non-Deed Restricted - - - - - - - 3 3 -
Deed Restricted - 17 - - 2 - - 2 - -
Non-Deed Restricted - - - - 8 - - 19 29 -
Deed Restricted - - - - 1 - - 6 - -
Non-Deed Restricted - 1 - - - - - 31 24 -
Above Moderate 97 - 224 9 49 60 107 23 58 6 - 536 -
477
- 243 9 49 71 107 23 119 62 - 683 233
5 6 7
Extremely low-Income
Need 2015 2016 2017 2018 2019 2020 2021 2022 2023 Total Units to Date Total Units
Remaining
85 - - - - - - - - - - 85
22 Please note: For the last year of the 5th cycle, Table B will only include units that were permitted during the portion of the year that was in the 5th cycle. For the first year of the 6th cycle, Table B will only include units that were permitted since the start of the planning period. Projection Period units are in a separate column.

Total RHNA
Total Units
Income Level
Very Low
Low
Extremely Low-Income Units*
Note: units serving extremely low-income households are included in the very low-income RHNA progress and must be reported as very low-income units in section 7 of Table A2. They must also be reported in the extremely low-income category (section 13) in Table A2 to be counted as progress toward meeting the extremely low-income housing need determined pursuant to Government Code 65583(a)(1). *Extremely low-income houisng need determined pursuant to Government Code 65583(a)(1). Value in Section 5 is default value, assumed to be half of the very low-income RHNA. May be overwritten.

Progress toward extremely low-income housing need, as determined pursuant to Government Code 65583(a)(1).

Please note: The APR form can only display data for one planning period. To view progress for a different planning period, you may login to HCD's online APR system, or contact HCD staff at [email protected].
49 7
This table is auto-populated once you enter your jurisdiction name and current year data. Past year information comes from previous APRs.
63 Moderate
169
99 112
Please contact HCD if your data is different than the material supplied here 77 2
Table B
Regional Housing Needs Allocation Progress
Permitted Units Issued by Affordability
162
149
Agenda Item # 8.

Jurisdiction Los Altos ANNUAL ELEMENT PROGRESS REPORT
Reporting Year 2022 (Jan. 1 - Dec. 31) Housing Element Implementation Planning Period 5th Cycle 01/31/2015 - 01/31/2023 Date of Rezone Rezone Type
2 4 5 6 7 9 10 11
APN Street Address Project Name+
Local
Jurisdiction
Tracking ID+
Date of Rezone Very Low-Income Low-Income Moderate-Income Above ModerateIncome Rezone Type Parcel Size
(Acres)
General Plan
Designation Zoning Minimum Density Allowed
Maximum
Density Allowed
Realistic
Capacity Vacant/Nonvacant Description of Existing Uses
Note: "+" indicates an optional field
Cells in grey contain auto-calculation formulas
Summary Row: Start Data Entry Below
3 8
Project Identifier RHNA Shortfall by Household Income Category Sites Description 1 Sites Identified or Rezoned to Accommodate Shortfall Housing Need and No Net-Loss Law Table C
150
Agenda Item # 8.

Jurisdiction Los Altos
Reporting Year 2022 (Jan. 1 - Dec. 31)
1 2 3 4
Name of Program Objective Timeframe in H.E Status of Program Implementation Program 1.1.1 – Implement
voluntary code inspection
program.

Provide voluntary inspections On-going
Continue the voluntary code inspection program encompassing code compliance, rehabilitation, energy conservation, and minimum fire safety standards.

Program 1.1.2 – Help
secure funding for
housing assistance
programs.

Help secure funding for housing
assistance On-going
Continue to support County and nonprofit housing rehabilitation programs by providing program information to interested individuals through handouts available at City Hall, the Los Altos Senior Center, the Los Altos Library, and the Woodland Branch Library. THe City aslso continues to transfer their Community Development Block Grant (CDBG) funds to the County to support housing programs each year.

Program 1.2.1 – Support
rezoning from office to
medium-density
multifamily.

Support rezoning from office to multiplefamily On-going Continue to implement, no requests received to date.

Program 1.3.1 – Enforce
neighborhood residential
buffering.

Provide appropriate buffers On-going
Continue to enforce minimum standards for buffers between residential properties and commercial uses and public/quasi-public uses through the development permit review process as provided in the Zoning Ordinance. Buffering will include a combination of landscaping, minimum setback, or yard requirements and stepped-back building heights.

Program 1.3.2 – Restrict
commercial uses in
residential neighborhoods.

Restrict commercial land uses in
residential areas On-going Continue to restrict commercial uses in residential neighborhoods except where may be allowed through recent State Law provisions.

Housing Programs Progress Report
Describe progress of all programs including local efforts to remove governmental constraints to the maintenance, improvement, and development of housing as identified in the housing element.

Table D
Program Implementation Status pursuant to GC Section 65583

ANNUAL ELEMENT PROGRESS REPORT
Housing Element Implementation
151
Agenda Item # 8.

Program 1.4.1 – Implement
zoning and design
standards.

Implement appropriate zoning and
design standards On-going
Continue to implement residential zoning, development standards, and design review to ensure compatibility of housing with neighborhood character, minimum open yard space, and streets that are safe.

Program 1.4.2 – Evaluate
design review process. Evaluate design review processes On-going Continue to implement by finding new ways to streamline the development review process to facilitate housing.

Program 1.4.3 – Facilitate
alternate modes of
transportation in
residential neighborhoods.

Facilitate alternative transportation
modes On-going
Continue to implement zoning and development standards to facilitate walkable neighborhoods and the safe use of alternate modes of transportation such as bicycles.

Program 1.4.4 –
Accommodate the needs
of children through design
review and land use
regulations, including
open space, parks and
recreation facilities,
pathways, play yards, etc.

Accommodate the needs of children in
development On-going Continue to implement through development process and implementation of Park Land Dedications Ordinance.

Program 1.5.1 – Review
compatibility of land
divisions as part of the
permit review and
approval process.

Review land use compatibility of
subdivisions On-going Continue to implement.

Program 2.1.1 – Encourage
diversity of housing. Encourage housing diversity On-going Multi-Family Residential projects approved with a mix of ownership and rental BMR's that demonstrates housing diversity.

Program 2.1.2 – Implement
multifamily district
development standards.

Require maximum density of multiplefamily projects On-going Continue to implement the multifamily district development standards to ensure the maximum densities established can be achieved and the maximum number of units is required to be built.

Program 2.1.3 – Allow
employee housing
Allow employee housing for agricultural
uses Pending Outstanding - given limited agricultural operations in the City.

Program 2.2.1 – Provide
development incentives
for mixed-use projects in
commercial districts.

Provide development incentives for
mixed-use projects On-going Continue to implement, have adopted changes to the CT District regulations to clarify density bonus incentives.
152
Agenda Item # 8.

Program 2.3.1 – Implement
density bonuses. Implement density bonuses On-going
Continue to implement - Density Bonus projects have been approved and continue to be submitted. Density Bonus regulations have been amended to align with State Law.

Program 3.1.1 – Support
efforts to fund homeless
services.

Facilitate and help pursue funding for
homelessness services Ongoing Continue to implement. Transfer CDBG funding to the County.

Program 3.1.2 – Continue
to participate in local and
regional forums for
homelessness, supportive,
and transitional housing.

Participate in regional forums for
homelessness, supportive and
transitional housing
On-going Continue to implement. Transfer CDBG funding to the County.

Program 3.2.1 – Amend the
City’s Zoning Ordinance to
accommodate emergency
shelters.

Amend zoning code for emergency
shelters 5/1/2015 Implemented June 2015 with code amendment.

Program 3.2.2 – Recognize
the statutory requirements
for transitional and
supportive housing.

Recognize transitional and supportive
housing 5/1/2015 Implemented June 2015 with code amendment.

Program 3.2.3 – Provide
incentives and amend the
City’s Zoning Ordinance
for compliance with
statutory requirements for
single-room-occupancy
residences to address the
needs of extremely low
income households
Provide incentives and amend code to
allow SRO for extremely-low income
households
5/15/2019 Implemented June 2015 with code amendment.

Program 4.1.1 – Monitor
condominium conversion. Monitor condo conversions On-going Continue to implement the Condominium Conversion Ordinance to protect against the conversion or demolition of rental units.
153
Agenda Item # 8.

Program 4.1.2: Conserve
small houses in areas of
small lot sizes.

Conserve small houses in small-lot
districts On-going Continue to conserve the stock of small houses in areas of small lot sizes.

Program 4.2.1 – Facilitate
new construction of
second dwelling units.

Facilitate new accessory dwelling units On-going Adopted amendment to ADU ordinance October 2020 in conformance with state laws and continue to implement.

Program 4.2.2 – Study the
feasibility of reducing
minimum lot sizes for
second living units.

Consider reducing lot size minimum for
accessory dwellings 1/1/2016 Code amendment adopted in 2018 and 2020 which removed the requirement for minimum lot sizes for ADUs consistent with State Law.

Program 4.3.1 – Assist in
the development of
affordable housing.

Help develop affordable housing On-going Continue to implement, transfer CDBG funding to the County, explain the density bonus process and affordable housing requirements to developers.

Program 4.3.2 – Implement
Chapter 14.28 of the
Municipal Code, which
defines the number of
required below-marketrate (BMR) units by
development size and
type, and requires on
larger projects (greater
than 10 market-rate units)
that the BMR units
generally reflect the size
and number of bedrooms
of the market rate units
Implement BMR housing regulations On-going
Continue to implement as amended in 2018 to require 15% affordability for projects having 5-9 units and increase the percentage of affordable units in projects having 10 or more units from 15% to 20% for low income in rental proejects and from 10% to 15% for very low income rental projects and increase the percentage of BMR units in an ownership project from 10% to 15% with the majority of the units affordable to moderate income households.

Program 4.3.3 –Consider
reduced parking
requirements for certain
housing types and
affordable housing units.

Consider reduced parking for affordable
housing On-going The City's Density Bonus ordinance was amended to implement State Density Bonus law with regard to reduced parking ratios and elimination of guest parking. 154
Agenda Item # 8.

Program 4.3.4 – Continue
to encourage maximum
densities.

Encourage max density Annually Continue to implement.

Program 4.3.5 – Initiate an
affordable housing
administration contract
review and renewal.

Initiate affordable housing
administrative contract renewal 7/1/2015 Agreement with Alta Housing finalized in 2018 and they now serve as housing provider.

Program 4.3.6 – Improve
the City’s BMR program
priority ranking process.

Evaluate the application priority ranking
process
7/1/2015 Implemented March 2015, revised priority list to merge Los Altos residents and those employed within the City limits as a second priority Program 4.3.7 – Consider a
commercial development
linkage fee for affordable
housing.

Consider Affordable housing linkage
fees 1/16/2019 Adopted a commercial development linkage fee in 2018.

Program 5.1.1 – Assist
residents with housing
discrimination and
landlord-tenant
complaints.

Assist residents with housing and
discrimination, and landlord-tenant
issues
On-going Continue to implement.

Program 6.1.1 –
DiscouA51:D64rage senioronly housing from
converting to other uses.

Discourage conversion of senior-only
projects On-going Continue to discourage projects developed as senior-only projects from converting to other uses.

Program 6.1.2 – Assist
seniors to maintain and
rehabilitate their homes.

Assist seniors to maintain and
rehabilitate their homes On-going Continue to implement, created a handout on Age Friendly Design Elements Program 6.1.3 – Encourage
conforming and contextual
senior housing near
transportation and
services.

Encourage senior housing near transit
and services On-going
Continue to ensure that senior housing conforms and harmonizes with surrounding neighborhoods and encourage that it be located near transportation and services.
155
Agenda Item # 8.

Program 6.2.1 – Provide
senior housing density
bonuses and development
incentives.

Provide senior housing density bonuses
and development incentives On-going Continue to implement.

Program 6.2.2 – Designate
and encourage senior
housing on specific wellsuited sites.

Designate and encourage senior
housing on well-suited sites On-going Continue to implement.

Program 6.2.3 – Mixed-use
development, including
developments that contain
senior and institutional
housing, will be
encouraged in public and
quasi-public land use
areas that are zoned PCF.

Encourage mixed-use developments
that contain senior On-going Continue to implement.

Program 6.2.4 – Senior
housing with extended
care facilities will be
allowed in multifamily and
mixed-use zoning
districts.

Allow senior extended care in multifamily and mixed-use districts On-going Continue to implement.

Program 7.1.1 – Promote
energy and water
conservation through
education and awareness
campaigns.

Promote energy and water conservation On-going Continue to implement.

Program 7.1.2 – Participate
in a Property Assessed
Clean Energy (PACE)
financing program.

Participate in PACE financing On-going City adopted a Resolution supporting PACE programs.

Program 7.1.3 – Promote
the use of solar energy. Promote solar energy On-going Continue to implement and as required by Green Building and Title-24 Building requirements.
156
Agenda Item # 8.

Program 7.2.1 – Implement
energy-efficient
regulations.

Implement energy efficiency regulations On-going Continue to implement and as required by Green Building and Title-24 Building requirements.

Program 7.2.2 – Monitor
and implement thresholds
and statutory
requirements of climate
change legislation.

Monitor and implement climate change
legislation On-going Continues to implement including implementation of the City’s Climate Action Plan.

Program 8.1.1 – Develop
annual housing status
report.

Develop annual housing status reports Annually Continue to implement.

Program 8.2.1 – Participate
in the regional housing
needs determination.

Participate in Regional Housing Needs
Determinations On-going Continue to implement.
157
Agenda Item # 8.

Jurisdiction Los Altos ANNUAL ELEMENT PROGRESS REPORT
Reporting Period 2022 (Jan. 1 - Dec. 31) Housing Element Implementation Planning Period 5th Cycle 01/31/2015 - 01/31/2023 Description of Commercial
Development Bonus
Commercial Development Bonus
Date Approved
3 4
APN Street Address Project Name+ Local Jurisdiction
Tracking ID+
Very Low
Income
Low
Income
Moderate
Income
Above Moderate
Income
Description of Commercial
Development Bonus
Commercial Development Bonus
Date Approved
Summary Row: Start Data Entry Below
Units Constructed as Part of Agreement
Commercial Development Bonus Approved pursuant to GC Section 65915.7 Table E
Note: "+" indicates an optional field
Project Identifier
1 2
Cells in grey contain auto-calculation
formulas
(CCR Title 25 §6202)
Annual Progress Report January 2020
158
Agenda Item # 8.

Jurisdiction Los Altos ANNUAL ELEMENT PROGRESS REPORT Note: "+" indicates an optional field Reporting Period 2022 (Jan. 1 - Dec. 31) Housing Element Implementation Cells in grey contain auto-calculation formulas Planning Period 5th Cycle 01/31/2015 - 01/31/2023
The description should adequately document how each
unit complies with subsection (c) of Government Code
Section 65583.1+
.

For detailed reporting requirements, see the chcklist
here:

Extremely LowIncome+ Very Low-Income+ Low-Income+ TOTAL UNITS+Extremely LowIncome+Very LowIncome+ Low-Income+ TOTAL UNITS+ https://www.hcd.ca.gov/communitydevelopment/docs/adequate-sites-checklist.pdf Rehabilitation Activity
Preservation of Units At-Risk
Acquisition of Units
Mobilehome Park Preservation
Total Units by Income
Table F
Please note this table is optional: The jurisdiction can use this table to report units that have been substantially rehabilitated, converted from non-affordable to affordable by acquisition, and preserved, including mobilehome park preservation, consistent with the standards set forth in Government Code section 65583.1, subdivision (c). Please note, motel, hotel, hostel rooms or other structures that are converted from non-residential to residential units pursuant to Government Code section 65583.1(c)(1)(D) are considered net-new housing units and must be reported in Table A2 and not reported in Table F.

Activity Type
Units that Do Not Count Towards RHNA+
Listed for Informational Purposes Only
Units that Count Towards RHNA +
Note - Because the statutory requirements severely limit what can be counted, please contact HCD to receive the password that will enable you to populate these fields.

Units Rehabilitated, Preserved and Acquired for Alternative Adequate Sites pursuant to Government Code section 65583.1(c) Annual Progress Report January 2020
159
Agenda Item # 8.

Jurisdiction Los Altos
Reporting Period 2022 (Jan. 1 - Dec. 31)
Planning Period 5th Cycle 01/31/2015 - 01/31/2023
Prior APN+ Current APN Street Address Project Name+
Summary Row: Start Data Entry Below
For up to 25 percent of a jurisdiction’s moderate-income regional housing need allocation, the plan Project Identifier
1 160
Agenda Item # 8.

ANNUAL ELEMENT PROGRESS REPORT
Note: "+" indicates
an optional field
Housing Element Implementation Cells in grey contain a
2 3
Local
Jurisdiction
Tracking ID+
Unit Category
(2 to 4,5+)
Tenure
R=Renter
Very LowIncome Deed
Restricted
Very LowIncome Non
Deed
Restricted
Low- Income Deed
Restricted
Table F2
Above Moderate Income Units Converted to Moderate Income Pursua nning agency may include the number of units in an existing multifamily building that were converted to d this table, please ensure housing developments meet the requirements descr Unit Types Affordability by Hou
161
Agenda Item # 8.
auto-calculation formulas
Low- Income
Non Deed
Restricted
Moderate- Income
Deed Restricted
Moderate- Income
Non Deed
Restricted
Above
ModerateIncome
Total Moderate Income Units
Converted from Above
Moderate
nt to Government Code section 65400.2
eed-restricted rental housing for moderate-income households by the imposition of affordability covenants a ribed in Government Code 65400.2(b).
4 5
usehold Incomes After Conversion Units credited toward Ab RHNA
162
Agenda Item # 8.

Jurisdiction Los Altos
Reporting Period 2022 (Jan. 1 - Dec. 31)
Planning Period 5th Cycle 01/31/2015 - 01/31/2023 ANNUAL ELEMENT PROGRESS REPORT Housing Element Implementation
2 3 4
APN Street Address Project Name+ Local Jurisdiction
Tracking ID+
Realistic Capacity
Identified in the
Housing Element
Entity to whom the site
transferred Intended Use for Site
1 Summary Row: Start Data Entry Below
Note: "+" indicates an optional field
Cells in grey contain auto-calculation
formulas
Table G
Locally Owned Lands Included in the Housing Element Sites Inventory that have been sold, leased, or otherwise disposed of Project Identifier
NOTE: This table must only be filled out if the housing element sites inventory contains a site which is or was owned by the reporting jurisdiction, and has been sold, leased, or otherwise disposed of during the reporting year.
163
Agenda Item # 8.

Jurisdiction Los Altos
Reporting Period 2022
(Jan. 1 - Dec.
31)
1 2 3 4
APN Street Address/Intersection Existing Use Number of
Units
NOTE: This tab
ALL surplus/ex
Summary Row: Start Data Entry Below
Parcel Identifier

ANNUAL ELEMENT PROGRESS
Housing Element Implemen
Table H
Locally Owned Surplus Site
For Santa Clara County jurisdictions, please format the 164
Agenda Item # 8.

Note: "+" indicates an optional field
Cells in grey contain auto-calculation
formulas
Designation Size Notes
5 6 7
Surplus
Designation
Parcel Size (in
acres) Notes
ble is meant to contain an invenory of
xcess lands the reporting jurisdiction
owns

S REPORT
ntation
es
APN's as follows:999-99-999
165
Agenda Item # 8.

Jurisdiction Los Altos ANNUAL ELEMENT PROGRESS REPORT Note: + indicates an optional field
Reporting Period 2022 (Jan. 1 - Dec. 31) Housing Element Implementation Cells in grey contain
auto-calculation
formulas
Planning Period 5th Cycle 01/31/2015 - 01/31/2023
Project Type Date
2 3
APN Street Address Project Name+ Local Jurisdiction
Tracking ID+ Activity Date Very Low
Income
Low
Income
Moderate
Income
Above Moderate
Income
16723120 682 SAN ANTONIO RD SB922-0007
Application for Parcel
Map for Lot Split
1/11/2023
16723120 682 SAN ANTONIO RD SB922-0008 Unit Constructed 2/10/2023 1 16723120 682 SAN ANTONIO RD SB922-0008 Unit Constructed 2/10/2023 1 16732016 355 LOS ALTOS
AVE
SB922-0011 Application for Parcel
Map for Lot Split
16732016 355 LOS ALTOS
AVE
SB922-0011 Unit Constructed 1
Table I
Units Constructed Pursuant to Government Code 65852.21 and Applications for Lot Splits Pursuant to Government Code 66411.7 (SB9) NOTE: SB 9 PROJECTS ONLY. This table only
needs to be completed if there were lot splits
applied for pursuant to Government Code
66411.7 OR units constructed pursuant to
65852.21.

Units entitled/permitted/constructed must also
be reported in Table A2. Applications for these
units must be reported in Table A.

Summary Row: Start Data Entry Below
Project Identifier Unit Constructed
1 4
Annual Progress Report January 2020
166
Agenda Item # 8.

Jurisdiction Los Altos ANNUAL ELEMENT PROGRESS REPORT
Reporting Period 2022 (Jan. 1 - Dec. 31) Housing Element Implementation Planning Period 5th Cycle 01/31/2015 - 01/31/2023
Project Type Date
2 3
APN Street Address Project Name+ Local Jurisdiction
Tracking ID+
Unit Category
(SH - Student Housing) Date Very Low- Income
Deed Restricted
Very Low- Income
Non Deed
Restricted
Low- Income Deed
Restricted
Low- Income
Non Deed
Restricted
Moderate- Income
Deed Restricted
Moderate- Income
Non Deed
Restricted
Above
ModerateIncome
Summary Row: Start Data Entry Below
Not
Cells in g
Table J
Student housing development for lower income students for which was granted a density bonus pursuant to subparagraph (F) of paragraph (1) of subdivision (b) of Section 65915 Project Identifier Units (Beds/Student Capacity) Approved 1 4
NOTE: STUDENT HOUSING WITH DENSITY BONUS ONLY. This
table only needs to be completed if there were student housing projects WITH a density bonus approved pursuant to
Government Code65915(b)(1)(F)
Annual Progress Report January 2020
167
Agenda Item # 8.

Jurisdiction Los Altos
Reporting Year 2022 (Jan. 1 - Dec. 31)
Planning Period 5th Cycle 01/31/2015 - 01/31/2023
Current Year
Deed Restricted 0
Non-Deed Restricted 3
Deed Restricted 0
Non-Deed Restricted 29
Deed Restricted 0
Non-Deed Restricted 24
6 62
Units by Structure Type Entitled Permitted Completed
SFA 0 0 0
SFD 3 0 0
2 to 4 0 0 0
5+ 351 0 0
ADU 107 62 40
MH 0 0 0
Total 461 62 40
121
461
382
0 0
0 0
0 Income Rental Ownership Total
Very Low 0 0 0
Low 0 0 0
Moderate 0 0 0
Above Moderate 0 0 0
Total 0 0 0
Cells in grey contain auto-calculation formulas
Income Level
Very Low
Low
Moderate
Above Moderate
Units Constructed - SB 35 Streamlining Permits
Number of Streamlining Applications Approved
Total Developments Approved with Streamlining
Total Units Constructed with Streamlining
Total Housing Applications Submitted:

Number of Proposed Units in All Applications Received:

Total Housing Units Approved:

Total Housing Units Disapproved:

Total Units
Housing Applications Summary
Use of SB 35 Streamlining Provisions
Note: Units serving extremely low-income households are included in the very low-income permitted units totals Number of Applications for Streamlining
Building Permits Issued by Affordability Summary
168
Agenda Item # 8.

Reviewed By:

City Manager City Attorney
GE
Finance Director
JH JD

AGENDA REPORT SUMMARY
Meeting Date: March 28, 2023
Subject Resolution 2023-__: Authorizing the City Manager to 1) Accept the SVCE Decarbonization Grant Program Agreement for the
design, procurement, and construction of the Energization Station Project (CF-XXX), 2) Appropriate the grant funds of $200,684 to the CIP Project Funds (CF-XXX), and 3)
Transfer $8,500 from Sustainability Operating Budget
(5330-5270) to the CIP Project Funds (CF-XXX)
Prepared by: Erin McDannold, Assistant Civil Engineer
Reviewed by: Aida Fairman, Director of Environmental Services & Utilities Department Approved by: Gabriel Engeland, City Manager
Attachments:

A. Resolution 2023-___
B. Grant Agreement and Application
Initiated by:

City Staff
Previous Council Consideration:

NA
Fiscal Impact:

The grant will increase available funds by $200,684 for the design, procurement, and installation of the Energization Station to be constructed by December 31, 2024. The Energization Station will provide a combination of Electric Vehicle Charging Stations (EVCS), energy generating workout equipment, a solar charging table, and an outdoor learning lab with educational signage. The project proposes to utilize City Sustainability Operating Budget to fund the civil design and educational signage. Personnel for the civil design is estimated to cost $7,000, and educational signage is estimated at $1,500 for three signs. Once electrical requirements are determined, we anticipate that PG&E Rule 29 funding will be attainable if upgrades are required. 169
Agenda Item # 9.

Subject: Resolution 2023-___ authorizing the City Manager to 1) Accept the SVCE Decarbonization Grant Program Agreement for the design, procurement, and construction of the Energization Station Project (CF-XXX), 2) Appropriate the grant funds of $200,684 to the CIP Project Funds (CF-XXX), and 3) Transfer $8,500 from Sustainability Operating Budget (5330-5270) to the CIP Project Funds (CF-XXX)
March 28, 2023 Page 2
The SVCE grant will fund the remainder of the project; see the breakdown of funds to be used below:
- City Funds
o $8,500 Sustainability Operating Budget (5330-5270)
- Other Funds
o $200,684 SVCE Decarbonization Demonstration Grant (CF-XXX) o $15,000 PG&E Rule 29 Funding (if needed)
- Amount already included in the approved budget: N
- Amount above budget requested: $200,684
Environmental Review:

The Council’s action in authorizing the City Manager to accept the SVCE grant funds is exempt from review under the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines Section 15303 (New Construction or Conversion of Small Structures) in that the demonstration project and charging stations to be constructed with the grant funds will be minor facilities or structures, and none of the circumstances identified in CEQA Guidelines Section 15300.2 apply.

Policy Question(s) for Council Consideration:
 Does the City Council wish to accept the Decarbonization Demonstration Grant from SVCE for the design, procurement, and construction of the Energization Station? Summary:
 In November 2022, Silicon Valley Clean Energy invited local jurisdictions to submit applications for a Decarbonization Demonstration Grant to fund projects showcasing building electrification or an electrification demonstration center.  The City submitted a grant application for the design, procurement, and construction of an electrification demonstration center called the “Energization Station” to be installed in front of the Los Altos Youth Center (LAYC) or at the Los Altos Community Center premises. 170
Agenda Item # 9.

Subject: Resolution 2023-___ authorizing the City Manager to 1) Accept the SVCE Decarbonization Grant Program Agreement for the design, procurement, and construction of the Energization Station Project (CF-XXX), 2) Appropriate the grant funds of $200,684 to the CIP Project Funds (CF-XXX), and 3) Transfer $8,500 from Sustainability Operating Budget (5330-5270) to the CIP Project Funds (CF-XXX)
March 28, 2023 Page 3
 The proposed outdoor Energization Station will include energy-generating workout equipment, public electric vehicle charging stations eventually to be also used for fleet vehicles, a solar-powered charging station, educational signage, and a learning lab area. The proposed exhibit will provide outdoor space for people to exercise, charge their vehicle or device, study, work, or relax outside; however, the area will also be available to rent for an educational tour.
 SVCE provided an agreement to award the requested $200,684 to the City for the proposed “Energization Station.” City attorneys have reviewed the agreement and updated the agreement to be authorized following council adoption.

Staff Recommendation:

Adopt Resolution 2023-___ authorizing the City Manager to 1) Accept the SVCE Decarbonization Grant Program Agreement for the design, procurement, and construction of the Energization Station Project (CF-XXX), 2) Appropriate the grant funds of $200,684 to the CIP Project Funds (CF-XXX), and 3) Transfer $8,500 from Sustainability Operating Budget (5330-5270) to the CIP Project Funds (CF-XXX) 171
Agenda Item # 9.

ATTACHMENT A
Resolution No. 2023-__ Page 1
RESOLUTION NO. 2023-___

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LOS ALTOS TO 1) ACCEPT THE SILICON VALLEY CLEAN ENERGY (SVCE)

DECARBONIZATION DEMONSTRATION GRANT PROGRAM AGREEMENT

FOR THE DESIGN, PROCUREMENT, AND CONSTRUCTION OF THE
ENERGIZATION STATION PROJECT (CF-XXX), 2) APPROPRIATE THE GRANT FUNDS OF $200,684 TO THE CIP PROJECT FUNDS (CF-XXX), AND 3) TRANSFER $8,500 FROM SUSTAINABILITY OPERATING BUDGET (5330- 5270) TO THE CIP PROJECT FUNDS (CF-XXX)
WHEREAS, Silicon Valley Clean Energy (“SVCE”) invited local jurisdictions to apply for grant funded projects that demonstrate building electrification or act as an electrification demonstration center; and
WHEREAS, the City of Los Altos applied for the design, procurement, and construction of an electrification demonstration center proposed as the “Energization Station”; and WHEREAS, the City was awarded all requested funds to construct the “Energization Station,” which will include energy-generating workout equipment, public electric vehicle charging stations eventually to be also used for fleet vehicles, a solar-powered charging station, wayfinding, and educational signage, and a learning lab area for members of the public to exercise, study, work, or relax outside;
WHEREAS, the City of Los Altos requires City Council approval to accept grants; and WHEREAS, the Council’s action in authorizing the City Manager to accept the SVCE grant funds is exempt from review under the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines Section 15303 (New Construction or Conversion of Small Structures) in that the demonstration project and charging stations to be constructed with the grant funds will be minor facilities or structures, and none of the circumstances identified in CEQA Guidelines Section 15300.2 apply. 172
Agenda Item # 9.

ATTACHMENT A
Resolution No. 2023-__ Page 2
NOW THEREFORE, BE IT RESOLVED, that the City Council of the City of Los Altos hereby authorizes the City Manager to 1) Accept the Silicon Valley Clean Energy (SVCE) Decarbonization Demonstration Grant Program Agreement for the design, procurement, and construction of the Energization Station project (CF-XXX), 2) Appropriate the grant funds of $200,684 to the CIP project funds (CF-XXX), and 3) Transfer $8,500 from Sustainability Operating Budget (5330-5270) to the CIP Project Funds (CF-XXX) I HEREBY CERTIFY that the foregoing is a true and correct copy of a Resolution passed and adopted by the City Council of the City of Los Altos at a meeting thereof on the 28th day of March 2023 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
___________________________
Sally Meadows, MAYOR
Attest:
_____________________________
Angel Rodriguez, INTERIM CITY CLERK
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SILICON VALLEY CLEAN ENERGY

DECARBONIZATION GRANT PROGRAM AGREEMENT
THIS AGREEMENT is made and effective as of _________, 2023 (“Effective Date”), by and between the SILICON VALLEY CLEAN ENERGY AUTHORITY ("SVCE"), an independent public agency, and City of Los Altos, a municipal corporation (“Recipient”). In consideration of the covenants, conditions and undertakings set forth herein, the parties agree as follows:

1. RECITALS. This Agreement is made with respect to the following facts and purposes which each of the parties acknowledge and agree are true and correct:

A. SVCE’s decarbonization grant program (“Program”) will provide over $1.5M in grants to member jurisdictions, public agencies, and community groups to plan and develop decarbonization demonstration and engagement projects.

B. Recipient submitted an application for Program funding, attached hereto and incorporated herein as Exhibit A, for a decarbonization demonstration or engagement project (“Project”). The scope and estimated budget for the Project are included in Exhibit A.

C. SVCE finds that the use of Grant Funds described herein furthers a public purpose and meets the goals and objectives established for the Program, and desires to award Recipient a one-time grant pursuant to the terms of this Agreement.

2. GRANT. SVCE hereby agrees to provide funding to Recipient in an amount not to exceed $200,684, subject to the provisions of this Agreement (“Grant Funds”). Such Grant Funds shall be disbursed to Recipient on a reimbursement basis. It is agreed and understood that the Grant Amount is a ceiling and that SVCE will only reimburse the allowable cost of services actually rendered as authorized by SVCE at or below the Grant Amount established herein.

3. REIMBURSEMENT OF GRANT FUNDS. Grant Funds shall be reimbursed pursuant to the following process:

A. SVCE shall reimburse Recipient for its actual and reasonable costs of constructing the Project up to the agreed upon Grant Funds.

B. Requests for payment submitted to SVCE shall include: 1) an itemized list of all expenditures; and 2) supporting documentation that clearly identifies the expenditure(s) in relation to the scope of the Project set forth in Exhibit A of this Agreement. Payment requests should be aggregated and submitted no more often than once per month.

C. SVCE shall process requests for payment and remit payment within 30 days.

D. If, in SVCE’s sole discretion, the request for payment is incomplete, inadequate, or inaccurate, SVCE may dispute the invoice for reasonable cause and hold all or a portion of the 174
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payment request until all required information is received or corrected. Any penalties imposed on the Recipient by a contractor, or other consequence, because of delays in payment or other breach of the agreement between the Recipient and the contractor are the responsibility of the Recipient and are not reimbursable under this Agreement.

E. Unless otherwise authorized by SVCE in writing, Recipient shall submit all documentation of Project completion, including a final request for payment, within sixty (60) days of Project completion.

F. Final payment of remaining Grant Funds, including any amounts withheld from previous payments, shall be paid up to the total amount of the actual Project cost, not to exceed the Grant Funds amount set forth in this Agreement, upon completion of the Project, receipt of the final report and final request for payment from the Recipient in a form and content satisfactory to SVCE.

4. USE OF GRANT FUNDS. Recipient shall use the Grant Funds to support the Program as set forth in Exhibit A. Any use(s) of Grant Funds not contemplated in this Agreement must be approved in writing by SVCE. This Agreement was awarded to Recipient based on the application submitted by Recipient with the intention that the awarded funds would be used to implement the Project as described in Exhibit A. Any substantive deviation during Project implementation may require reevaluation or result in loss of funding. In no event shall Recipient’s Grant Funds or scope of work be increased. If Recipient knows or should have known that substantive changes to the Project will occur or have occurred, Recipient will immediately notify SVCE in writing. SVCE will then determine whether the Project is still consistent with the overall objectives of the Program and whether the changes would have negatively affected the Project ranking during the Grant evaluation process. SVCE reserves the right to have Grant Funds withheld from Recipient, or refunded to SVCE, due to Recipient’s failure to satisfactorily complete the Project or due to substantive changes to the Project.

5. TERM. This Agreement shall commence on the Effective Date, and shall remain and continue in effect until the final Grant Funds are paid to Recipient, unless sooner terminated pursuant to the provisions of this Agreement. Projects must be complete no later than December 31, 2024.

6. REPORTING AND RECORDS. Recipient agrees to cooperate with SVCE and provide requested information, if any, related to the use of Grant Funds and the Project, including for the purposes of SVCE’s evaluation, measurement, and verification activities for the Program.

Recipient will cooperate in good faith with SVCE or its authorized representative in performing evaluation, measurement and verification (EM&V) of the Program. Information accessed for EM&V may include, but is not limited to, onsite verification of Project operation, Program compliance, and Project records, analysis of facility billing metered data, analysis of data collected from facility-owned submetering, and collection of supplementary metered data onsite. All information collected will be held confidentially and will be used by SVCE or its authorized representative for Program analysis purposes only. Recipient is responsible for ensuring, through a separate agreement between Recipient and property owner, that property owner shall cooperate with SVCE to provide any documentation and assist in analysis and provide access to the Project site at reasonable times, during the construction of the Project and 175
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for a period of up to two (2) years from the completion of the Project. During the course of the Project and for three (3) years thereafter from the receipt of the final Grant Funds, the Recipient agrees to maintain, intact and readily accessible, all communications, data, documents, reports, records, contracts, and supporting materials relating to the Project, as SVCE may require. The Recipient agrees to have financial and compliance audits performed as SVCE may require.

7. LEGAL RESPONSIBILITIES. Recipient shall keep itself informed of all local, State and Federal ordinances, laws and regulations which in any manner affect those employed by it or in any way affect the performance under this Agreement. Recipient shall at all times observe and comply with all such ordinances, laws and regulations. SVCE, and its officers and employees, shall not be liable at law or in equity occasioned by failure of Recipient to comply with this Section.

8. PREVAILING WAGES. By accepting the Grant Funds, Recipient as a material term of this Agreement shall be fully responsible for complying with all California public works requirements including but not limited to payment of prevailing wage. Therefore, as a material term of this Agreement, to the extent required by California law, Recipient shall ensure that prevailing wages are paid, that the project budget for labor reflects these prevailing wage requirements, and that the project complies with all other requirements of prevailing wage law, including that Recipient’s subcontractors also comply with all applicable public works/prevailing wage requirements.

9. PROCUREMENT. At minimum, Recipient shall solicit at least three bids and select the lowest bidder when procuring goods or services, where the costs are eligible for reimbursement under this Agreement. In the event the Recipient is required by statute or policy to solicit additional bids or follow a more stringent solicitation process, Recipient shall follow such process. Recipient may also procure goods and services through California Government Code section 4217.10.

In the event that there is only one supplier for goods or services, procurement shall follow the Recipient’s Sole Source Procurement Policy. A Sole Source Procurement Memorandum will be prepared by the Recipient and provided to SVCE.

10. CALIFORNIA PUBLIC RECORDS ACT. Recipient acknowledges that SVCE is subject to the California Public Records Act (Gov. Code § 7920.000 et seq.). SVCE acknowledges that Recipient may submit information to SVCE that Recipient considers to be confidential, proprietary, or trade secret information. Only such information clearly designated in writing as “confidential” shall be deemed “Confidential Information.” Upon request or demand of any third person or entity (“Requestor”) for the production, inspection, and/or copying of Confidential Information, SVCE shall notify Recipient that such request has been made.

Recipient shall be solely responsible for taking whatever legal steps are necessary to protect Confidential Information and to prevent its release to the Requestor. Without limiting SVCE’s right to disclose Confidential Information as may be required by law, if Recipient takes no such action after receiving the foregoing notice from SVCE, SVCE shall be permitted to release information it deems subject to disclosure.
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11. NOTICES. Any notices provided under this Agreement must be in writing and may be given either by mail or e-mail to the following addresses:

SVCE: Silicon Valley Clean Energy Authority
333 W. El Camino Real #330
Sunnyvale, CA 94087
Attention: _______________
RECIPIENT: City of Los Altos
1 N San Antonio Rd
Los Altos, Ca 94022
Attention:________________

12. INDEPENDENT CONTRACTOR.

A. Recipient shall at all times remain as to the SVCE a wholly independent contractor. The personnel performing the services under this Agreement on behalf of Recipient shall at all times be under Recipient's exclusive direction and control. Neither SVCE nor any of its officers, employees, agents, or volunteers shall have control over the conduct of Recipient or any of Recipient's officers, employees, or agents except as set forth in this Agreement. Recipient shall not at any time or in any manner represent that it or any of its officers, employees or agents are in any manner officers, employees or agents of the SVCE.

Recipient shall not incur or have the power to incur any debt, obligation or liability whatever against SVCE, or bind SVCE in any manner.

B. No employee benefits shall be available to Recipient in connection with the performance of this Agreement. Except for the fees paid to Recipient as provided in the Agreement, SVCE shall not pay salaries, wages, or other compensation to Recipient for performing services hereunder for SVCE. SVCE shall not be liable for compensation or indemnification to Recipient for injury or sickness arising out of performing services hereunder.

13. INDEMNIFICATION. Recipient shall indemnify, protect, defend and hold harmless SVCE, its elected officials, officers, employees, volunteers, and representatives from any and all suits, claims, demands, losses, defense costs or expenses, actions, liability or damages of whatsoever kind and nature which SVCE, its officers, agents and employees may sustain or incur or which may be imposed upon them for injury to or death of persons, or damage to property arising out of Recipient’s acts or omissions arising out of or in any way related to the performance or non-performance of this Agreement.

14. INSURANCE.

A. On or before the commencement of the term of this Agreement, Recipient shall furnish SVCE with certificates showing the type, amount, class of operations covered, effective dates, and dates of expiration of insurance coverage in compliance with the requirements in this Section. Recipient shall maintain such coverage in full force at all times for the duration of 177
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this Agreement, at its sole cost and expense. Nothing herein shall be construed as a limitation on Recipient indemnification obligations under this Agreement.

B. Recipient shall maintain the following minimum insurance coverages:
1) Workers’ compensation, as required by the State of California; 2) Commercial general liability coverage with minimum limits of $1,000,000 per occurrence and $2,000,000 aggregate for bodily injury and property damage. ISO occurrence Form CG 0001 or equivalent is required;
3) Comprehensive automotive liability coverage with minimum limits of $1,000,000 per accident for bodily injury and property damage. ISO Form CA 0001 or equivalent is required.

C. Such coverages shall be issued by an insurer(s) licensed to conduct business in the State of California, with a minimum A.M. Best’s Insurance Rating of A:VII unless otherwise approved in writing as satisfactory to SVCE.

D. The insurance limits required by SVCE are not represented as being sufficient to protect Consultant. Recipient is advised to confer with its insurance broker to determine adequate coverage for Recipient.

E. This section shall not apply if Recipient is a public agency that provides certificates reasonably acceptable to SVCE evidencing that the public agency is self-insured and participates in a risk management pool that provides excess liability coverage in amounts greater than or equal to the amounts set forth in this section.

15. DEFAULT AND TERMINATION. Should an Event of Default occur, SVCE shall provide a notice of default to Recipient and shall give Recipient at least fifteen (15) calendar days from the date the notice is sent to cure the Event of Default. If Recipient fails to cure the Event of Default within the time prescribed, SVCE may, at SVCE’s sole discretion, withhold Grant Funds not yet disbursed hereunder, require the return or repayment of Grant Funds already disbursed, and/or terminate this Agreement by written notice which shall be effective upon receipt by Recipient. “Event of Default” shall mean the occurrence of any one or more of the following events by Recipient: (a) any false statement, representation, or warranty contained in this Agreement, the Application, or any other document submitted to SVCE; (b) failure to comply with applicable laws; (c) a failure to maintain in effect any policy of insurance required under this Agreement; or (d) a material breach of this Agreement.

16. NON-APPROPRIATION. Recipient acknowledges that SVCE is a public agency. In the event that sufficient funds for the performance of this Agreement are not appropriated by the SVCE Board of Directors in any fiscal year covered by this Agreement, this Agreement may be terminated by SVCE, without penalty, by giving notice to Recipient of such facts and of SVCE’s intention to terminate.
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17. NON-WAIVER. Failure to exercise any right the SVCE may have or be entitled to, in the event of default hereunder, shall not constitute a waiver of such right or any other right in the event of a subsequent default.

18. AMENDMENT OF AGREEMENT. No modification, rescission, waiver, release or amendment of any provision of this Agreement shall be made except by a written agreement executed by the Recipient and the SVCE.

19. ASSIGNMENT PROHIBITED. In no event shall the Recipient assign or transfer any portion of this Agreement.

20. GOVERNING LAW. This Agreement shall be governed by the laws of the State of California. Any legal action brought under this Agreement must be instituted in the Superior Court of the County of Santa Clara, State of California.

21. NO THIRD-PARTY BENEFIT. The provisions of this Agreement are for the sole benefit of the parties hereto and confer no rights, benefits, or claims upon any person or entity not a party hereto.

22. SEVERABILITY. If any provision of this Agreement is held to be invalid or unenforceable for any reason, the remaining provisions will continue in full force as necessary to effectuate the original intent of the parties, without being impaired or invalidated in any way.

The parties agree to replace any invalid provision with a valid provision that most closely approximates the intent and economic effect of the invalid provision.

23. RECIPIENT'S AUTHORITY. Recipient represents and warrants that (a) it has the power and authority to enter into this Agreement and to perform its obligations hereunder; (b) the person who executes this Agreement on its behalf has the necessary authority to bind Recipient; and (c) neither the execution and delivery of this Agreement nor the performance of its obligations hereunder will constitute a violation of, a default under, or conflict with any term of any governance documents or other agreements to which it is bound.

24. COUNTERPARTS. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original and all of which shall be taken together and deemed to be one instrument. Faxed and PDF counterpart signatures are sufficient to make this Agreement effective.

25. ENTIRE AGREEMENT. This Agreement contains the entire understanding between the parties relating to the obligations of the parties described in this Agreement. All prior or contemporaneous agreements, understandings, representations and statements, oral or written, are merged into this Agreement and shall be of no further force or effect. Each party is entering into this Agreement based solely upon the representations set forth herein and upon each party's own independent investigation of any and all facts such party deems material.

26. COMMUNICATIONS AND ENGAGEMENT. Recipient agrees that SVCE may use and publicize city-provided and approved information and visual materials (photos, videos, etc.) related to this project, including (but not limited to) information and visual materials provided in this application, updates, or follow-up information. Recipient will coordinate in good 179
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faith with SVCE on follow-up activities, such as interviews, outreach coordination, photo or video shoots, requests for additional information, and the design of educational materials and signage related to the project. Recipient will work with SVCE to schedule all coordination and activities within a determined and mutually agreed-upon time frame and understand that refusal or failure to collaborate on marketing and outreach may result in termination of the funding.

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

SILICON VALLEY CLEAN ENERGY AUTHORITY
_____________________________________
Girish Balachandran, Chief Executive Officer
APPROVED AS TO FORM:
________________________________
Trisha Ortiz, General Counsel
[City of Los Altos]

APPROVED AS TO FORM
By:

Name: Jolie Houston
Title: City Attorney
AGREED
By: _____________________________
Name: Gabriel Engeland
Title: City Manager
Date:___________________________
[*Note: Signatures of two corporate officers are required for corporations – First signature must be one of the following: 1) the chairman of the board; 2) the president; or 3) any vice president. The second corporate signature must be one of the following: 1) the secretary; 2) any assistant secretary; 3) the chief financial officer; or 4) any assistant treasurer. Signature of City Manager is required for cities.]
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EXHIBIT A
[Grant Application]
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1 | Page
Figure 1: Example of an Energy Display unit at an outdoor gym.

Energization Station Proposal
Applicant information
Applicant: City of Los Altos
Adress: 1 N San Antonio Rd
Los Altos, Ca 94022
Main Contact Name: Tania Katbi
Contact Number: 650-947-2743
Contact Email: [email protected]
Summary
The primary goal of the proposed energy demonstration center, the Energization Station, is to create an inviting and accessible community facility for the public to see and experience electrification technologies in a creative and interactive learning environment. The imagined multifunctional center will include an outdoor learning lab, energy-generating workout equipment, and a solar charging table in conjunction with two or three dual port Electric Vehicle Charging Station (EVCSs). The outdoor facility will include an Energy Display Unit (see Figure 1) harnessing and displaying the generation coming from the workout equipment, a solarpowered charging table, and energy coming from the grid. Signage and display units will be utilized to demonstrate that local renewables can be paired with existing electrification infrastructure to reduce greenhouse gas (GHG) emissions and expedite the transition from fossil fuels. The Learning Lab component will provide a location for community members to educate themselves, conduct work, charge their devices, or workout and contribute to EVCS and City Hall energy demand. The lab will be equipped with tables, chairs, whiteboards, and shelves to promote a healthy learning environment for students of all ages in an area already heavily trafficked by the community. The Energization Station could be the first energy demonstration center in Los Altos, paving the way for future educational energy-efficient projects to inspire the community and promote healthy outdoor spaces. The City of Los Altos is requesting $200,684 for installation of the Energization Station.
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Full Description
The proposed location of the Energization Station is adjacent to a playground, the police station, youth center, library, history museum, baseball fields, and City Hall, although there are other additional locations around Los Altos City Hall and Community Center that could also be utilized for similar installations (See Figure 5).

Locations near the Community Center would also highlight and compliment the green infrastructure, new electrical facilities, and future public engagement goals (as discussed in the “Organizational Project History” section).

Members of the community, teachers, and other organizations coming to use the facility will have a space to either exercise, work, play, learn, charge their vehicle and/or explore the area. The physical components of the Energization Station could potentially include the items listed below:

1. Energy Generating Workout
Equipment (4 units)

2. Solar-powered charging table

3. Energy Display Unit

4. Battery Storage

5. Learning lab with seating,
tables, and a whiteboard

6. Public Electric Vehicle
Charging Stations (4-6 ports)
Energy-generating workout
equipment such as “The Green
Read and Ride Bike” and/or the
“Energy Hand Bike” will be utilized
to create a healthy outdoor mini gym environment. Nearby signage will be used to explain how the exercise technology generates energy. Users will also see information on how much energy they are generating and where the energy is being applied through the Energy Display Unit. Additionally, recurring users will have the option to create an account to track their generation over time, and top generators will be displayed on the adjacent display unit like a video game ranking screen.

The solar-powered charging table will provide
some shade utilizing a solar panel and provide
plug-in locations for people to charge their
devices. When energy is not being used to charge
devices or supplement electric vehicle charging,
the solar panel will charge the battery or City Hall.

The Energy Display Unit captures the energy
created from the workout equipment and will
demonstrate all the energy inputs and how they
are being used through a dynamic schematic.

Figure 3: Example of a solar charging table
Figure 2: Example of an outdoor gym with energy-generating equipment. 183
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The schematic will change based on the real-time inputs of human energy to the workout equipment and energy outputs from EV and device charging. The unit will act as a central controller and demonstrate how much energy is still required from the grid to operate this quasi-microgrid. The display unit and nearby signage will also be used to educate on the grid and where our energy comes from locally. Creative conduit encasings will also provide an educational component by displaying the electrical wiring connecting the different units.

The learning lab will provide seating, tables, shelves, a whiteboard, and educational signage to bring all the components together in a multi-use outdoor space. This decarbonized office or learning space will reduce the accumulation of CO2 and the need for ventilation in a traditional office/classroom setting. The surrounding apricot orchard and trees will provide more oxygen and a beautiful, healthy atmosphere for work, exercise, leisure, or learning. Organizations and teachers will be able to rent out the space for a unique educational experience and can request City staff to lead informative tours on the station components.

Adjacent to the learning lab, the City will utilize existing parking to create 4-6 publicly facing EVCS ports.

Adding an additional reason to visit the Energization Station, these EVCSs will be connected to the central controller, and available energy from the workout equipment generation and solar panel will help to supplement the charge. Eventually, the City will utilize these ports for future EV fleet vehicles during night hours, but they will remain publicly accessible during the day. Following installation, the facility will provide a myriad of opportunities for community outreach and GHG emission reductions, outlined in the following sections.

Green House Gas (GHG) Emissions Reduction
Utilizing the Energization Station as an outdoor gym, classroom, office, or study center will reduce energy demand and GHG emissions by producing energy locally through exercise and solar, as well as reducing the need for traditional indoor HVAC and gas water heater systems. Regulating indoor climates with traditional gas and refrigerant powered systems will continue to use more energy, fossil fuels, and create more GHG and ozone depleting emissions as extreme temperatures and weather events exacerbate with climate change.

These systems also passively leak uncombusted methane and refrigerants which often go undetected (Optimized Thermal Systems, Inc., n.d.). By utilizing outdoor spaces, especially near the energy efficient and Figure 4: Example of a learning lab where children can flourish. Figure 4: Example of learning lab where children can flourish. 184
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fully electric Los Altos Community Center, we are reducing the need for traditional HVAC and gas water heaters and providing another avenue for the community to use and learn about decarbonized technologies.

Specific emissions from HVAC and gas water heating systems vary depending on location, refrigerant type, fueling source, building capacity/use, and specific equipment used; therefore, averages of kg of CO2 Equivalent were used to summarize emissions. The following assumptions were made to include a range of reductions based on the anticipated use of the facility.
- People are using the space over a generic gym, office, or classroom with traditional gas/refrigerant powered HVAC systems.
- Water heater methane emission reductions are anticipated due to use of the community center restrooms instead of people's homes, offices, classrooms, or gyms with assumed gas water heating systems. However, GHG reductions were not calculated due to potential variability and uncertainty of facility use. (Delforge, 2020)
- Averages from Small Office (5 conditioned zones) Lifetime Emissions in LA and Fresno with varying refrigerants were averaged and divided over an expected 20-year HVAC lifetime and then divided by 5 office rooms to get daily HVAC emission values of 3.5 kg CO2 Equivalent per person. (Optimized Thermal Systems, Inc., n.d.)
- People using a traditional gym will produce more heat and require additional HVAC proportional to heat produced. Gym HVAC emissions were estimated by multiplying the 3.5 kg CO2 Equivalent determined above by the ratio of expected BTUs per person during exercise (72 BTU/hr sf) over the expected BTUs per person during generic work activities (22 BTU/hr sf) equaling a multiplication factor of 3.3. (Thermal Energy Created Metabolic Rate by the Human Body, n.d.) - People charging electric cars instead of 16-gallon tank gas cars causing 8.9 kg CO2 per gallon (Greenhouse Gas Emissions from a Typical Passenger Vehicle, 2018) and 3.75x10-3 kg CH4 per gallon (Wilson, 2022).

Figure 5: Example of proposed Energization Station locations. 185
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Table 1: Estimated GHG emissions reductions and energy production.

Unit Assumptions GHG and/or Gas
Reductions
Local Renewable
Energy
Energy Generating
Workout
Equipment
4 users exercising on and off for
8 hours a day, producing 0.2
kWh/hour/person

4.5 kg of CO2
Equivalent per day

6.4 kWh produced per
day
Solar Powered
Table

18.75 SF Solar Panel and

5.11 kWh/sqm/day GHI

6.2 kg of CO2
Equivalent per day

8.8 kWh of solar energy
available per day
Workspace ~ 10 people utilizing the space
over an 8-hour day causing 3.5
kg CO2 Equivalent per office
35 kg of CO2
Equivalent per day
Classroom Space ~ 10 people utilizing the space
over an 8-hour day causing 3.5
kg CO2 Equivalent per person
35 kg of CO2
Equivalent per day
Workout Space ~ 4 people utilizing equipment
over a day causing 11.5 kg CO2
Equivalent per person
46 kg of CO2
Equivalent per day
EVCS ~2 people getting full charge a
day at each port or 12 people
getting full charge a day vs 12
people filling up on gas and
completely using their full tank
192 gallons of gas
saved per day reducing
CH4 and CO2 emissions
by 0.072kg and 1709
kg respectively per full
use of gas tank
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Budget
The City of Los Altos is requesting $200,684 to design and construct the Energization Station. The City will contribute at least $8,500 to this installation and additional funding if necessary. The budget includes the high end of the possible range of EVCS, estimating for 3 units with 6 charging ports. The electrical upgrades (estimated at $15,000) are anticipated to be covered through PG&E Rule 29 electrification aid but will be covered by the City if necessary.

Table 2: Proposed budget and funding for the Energization Station.

Line-Item Description Average Cost
Per Unit
Quantity SVCE
Funding
Other
Funding
Total Cost
Energy Demonstration
Energy Generating Exercise Unit $6,951 4 $27,804 $0 $27,804 Equipment Installation $15,000 1 $15,000 $0 $15,000
Energy Display Unit $4,000 1 $4,000 $0 $4,000
Battery Storage $10,000 1 $10,000 $0 $10,000
Electrical Design of Energization
Station
$30,000 1 $30,000 $0 $30,000
Civil Design of Energization
Station
$7,000 1 $0 $7,000 $7,000
Outdoor Learning Lab
Educational Signage $500 3 $0 $1,500 $1,500
Structural Components
(walls/cover)
$2,000 5 $10,000 $0 $10,000
Solar Charging Table $20,000 1 $20,000 $0 $20,000
Heavy-duty Whiteboard $300 1 $300 $0 $300
Chairs $200 10 $2,000 $0 $2,000
Tables $2,500 2 $5,000 $0 $5,000
Shelves $780 1 $780 $0 $780
Energy Education Smart Screen $5,000 1 $5,000 $0 $5,000 EV Charging Stations
EV Charging Station Level 2 (240
Volt public facing dual-port)
Hardware, & 5 years of Software,
& Services
$16,000 per
unit
4-6 ports
or 2-3
units
$32,000-
$48,000
$0 $32,000-
$48,000
Electrical Upgrades (if determined
by PG&E)
$15,000 1 $0 $15,000 $15,000
EVCS Installation $7,000 2-3 units $14,000-
$21,000
$0 $14,000-
$21,000
Protective Bollards $300 4-6 $1,200-
$1,800
$0 $1,200-
$1,800
Total Amount Requested $200,684 Total
Cost
$224,184
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Table 3: Other sources of funding.

Source of Other Funding Monetary In-Kind $ Value Total Contribution of Funding from Other
Sources
CIP Sustainability Projects $8,500 $0 $8,500
PG&E Rule 29 $15,000 $0 $15,000
Workplan & Timeline
The following timeline shows the quarterly progress and eventual completion of the project by December 31st , 2024.

Table 4: Anticipated project timeline.
2023 Quarterly Tasks
2023
Quarter 1:

Jan-Mar
Quarter 2:

Apr-Jun
Quarter 3:

Jul-Sep
Quarter 4:

Oct- Dec
If awarded in December 2022,
Grant Agreement Establishment
Accept Award at Council
Reach out to ChargePoint for Estimates on
EVCS
Meet with PG&E to discuss existing
infrastructure & whether upgrades are
required /Design Aid
In-house civil design development
Put RFP for Electrical Design out to bid
Award Design Contract
Execute Professional Services Agreement
Complete Project Design
Obtain Necessary Permits/CEQA Exemption
Go out to bid for Construction
2024 Quarterly Tasks 2024
Award Contract
Construction of Facility
Accept Completion of Project at City Council
Launch of Community Outreach
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Outreach & Community Education Plan
Based on the proposed City central location and objective of the Energization Station, it is anticipated that community members and visitors will be drawn to this free unique experience, especially if they need a place to charge their vehicle. However, the City will also engage the public in specific opportunities explained below.

1. Energization Station Soiree or ribbon cutting ceremony to introduce the public to the new facility.

2. Organizations, NGOs, and teachers will be able to rent the space for City staff-led electrification education sessions.

3. Public Tours will be given by City staff to engage and educate the public on the importance of renewable energy sources.

4. Annual Exercise Generation Competition launching on January 1, 2025, where participants can log their generation throughout the year. Users producing the most energy will be placed at the top of a list/ranked and will be recognized via social media. The highest producer annually will be recognized and provided with a prize.

Outside of these opportunities, colorful signage and the dynamic energy display unit will inform users about renewables, decarbonization, and the grid. Thus, providing an inspiring installation for all ages, especially the next generation faced with the lifelong battle of climate change.

Furthermore, engaging children in outdoor learning has been shown to increase school performance, enhance physical, mental, and social health, support emotional, behavioral, and intellectual growth, and foster enthusiasm for education and the environment (Outdoor Education – Research summary, n.d.). Additionally, research shows that studying and exercising outside has a handful of positive benefits, such as improved focus, self-esteem, energy, and it can help combat depression, stress, and exhaustion (ACS Publications, 2022).

The goal of the Energization Station is to create a widely accessible Energy Demonstration Facility engaging all ages in healthy and educational outdoor activities.

Organization Project History
The City of Los Altos has recently undergone a reorganization, and this project will be administered by the new Environmental Services and Utilities Department (ESUD) that went into effect on July 1, 2022. The ESUD team consists of passionate Sustainability Coordinators, Engineers, Maintenance Workers, and Administrators ready to roll out the climate action projects with help from other departments such as Development Services, Public Works, Parks and Recreation, and Finance in this tight nit Municipality. The following recent projects, grants, and community displays demonstrate our jurisdiction’s competence in completing projects beneficial to the community.

Example Projects, Grants, and Community Demonstration Sites Los Altos Community Center – Opened in October 2021, the 24,500 square foot sustainable community center includes dedicated space for senior, teen, and kindergarten preparation programs, as well as flexible indoor and outdoor community gathering spaces to accommodate rentals, various recreational programs, classes, and events. The project was funded through the General Fund, the Park and lieu fund, and through a loan, and was collectively administered by Maintenance, Recreation, and Engineering City departments alongside contracted PMs, architects, and construction vendors. The Center was designed to meet the LEED Gold Equivalent building standard, is all electric, has low flow fixtures, drip irrigation, contains four bioretention 189
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areas, and included four EVCSs with infrastructure for later EVCS expansion. Including long-term sustainability goals during initial planning stages and collaboration with several City departments has led to this Centers continued success. The facility includes community outreach pamphlets to advertise on sustainable design features and includes outdoor space for proposed Energization Station components. 1266 Montclaire Outfall Repair – The ESUD division just successfully finished project management of a stormwater outfall repair discharging to the Permanente Creek. The project required extensive and frequent coordination with ArmyCorp, CDFW, Valley Water, and RWQCB to obtain permits. The site is now being monitored to ensure bank and plant stabilization.

Historic Structures Report Grant – The Historical Commission and the Los Altos History Museum prepared and submitted a Certified Local Government grant application to the State Office of Historic Preservation. The application was awarded $34,100 in Fiscal Year 2018-19 allowing City Public Works and Planning staff to contract with a historic preservation consultant to prepare a Historic Structures Report (HSR) for the Halsey House at Historic Redwood Grove Nature Preserve. The grant was successfully completed, and the report has become an instrumental document in determining the next steps at the Historic Halsey House.

Woodland Library Electric HVAC – As a result of PG&Es lack of local gas infrastructure, the City of Los Altos Parks and Recreation Department worked with $40,000 of PG&E funds to switch the existing gas heating system to an all-electric heat pump system at the Woodland Library.

Woodlands Library Demonstration Garden – Los Altos Girl Scout Troop 60321 partnered with City of Los Altos staff and other environmental and water related organizations to design and install a demonstration rain garden. The garden used drought resistant and native plants in conjunction with LID features and informational signage to educate the community on sustainable landscaping.

Electrical Upgrades at Grant Park Community Center- The City of Los Altos is currently working on upgrading electrical capacity at the Grant Park Community Center to transition to an all-electric HVAC and water heating system. The project has already been approved and awarded $600,000 in funding by the City Council. The center is highly trafficked especially by Seniors and following completion, the location will provide additional outreach materials to educate on the transition and the associated positive environmental impacts of decarbonization.

Conclusion
Thank you for your time and consideration in evaluating this opportunity. We believe this unique demonstration center will bring immense community value and engagement by creating fitness, learning, work, play, and/or leisure opportunities in a decarbonized facility. We look forward to hopefully introducing our community to this multi-use Energization Station and inspiring all ages for an electrified and renewable energy future.
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References
1) Outdoor Education – Research Summary. https://www3.uwsp.edu/Pages/default.aspx. 2) “Does Participating in Physical Activity in Outdoor Natural Environments Have a Greater Effect on Physical and Mental Wellbeing than Physical Activity Indoors? A Systematic Review.” ACS Publications, 25 Oct. 2022, https://pubs.acs.org/doi/abs/10.1021/es102947t.
3) “Greenhouse Gas Equivalencies Calculator.” EPA, 25 Oct. 2022, https://www.epa.gov/energy/greenhouse-gasequivalencies-calculator. 4) Landscape Forms. https://www.landscapeforms.com/en-US/Pages/default.aspx. 5) Ridden, Paul. “Green Heart Outdoor Gym Turns People Power into Electricity.” New Atlas, 25 June 2012, https://newatlas.com/tgo-green-heart-electricity-generating-gym/23078/. 6) Delforge, Pierre. The Methane Math for Gas Tankless Water Heaters. 24 Sept. 2020, https://www.nrdc.org/experts/pierre-delforge/methane-math-gas-tankless-water. 7) The Human Factor in HVAC, https://www.conditionedairsolutions.com/the-human-factor-in-hvac/. 8) Optimized Thermal Systems, Inc. Estimation of Lifetime CO2 Emissions of Commercial HVAC Equipment through Building Energy Modeling. Dec. 2020,
https://www.optimizedthermalsystems.com/images/pdf/about/CA_VRF_Emissions_Study_rev.pdf. 9) Thermal Energy Created Metabolic Rate by the Human Body. n.d., https://www.engineersedge.com/heat_transfer/thermal_energy_created_13777.htm. 10) Greenhouse Gas Emissions from a Typical Passenger Vehicle. (2018, March). Environmental Protection Agency. https://www.epa.gov/greenvehicles/greenhouse-gas-emissions-typical-passengervehicle#:~:text=typical%20passenger%20vehicle%3F- ,A%20typical%20passenger%20vehicle%20emits%20about%204.6%20metric%20tons%20of,8%2C887%20grams%20of% 20CO2.
11) Wilson, D. (2022). Electric Vehicles. UW Electrical Engineering. https://labs.ece.uw.edu/community/EnvironmentalImpacts/ElectricVehicleCalculations/#:~:text=Methane%20Emissions %20(in%20units%20of,or%200.375%20grams%20per%20gallon
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Agenda Item # 9.

PUBLIC CORRESPONDENCE

To send correspondence to the City Council, on matters listed on the agenda please email [email protected]
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From: Pat Marriot
To: Public Comment
Subject: PUBLIC COMMENT ITEM #8 MARCH 28,2023
Date: Saturday, March 25, 2023 4:48:14 PM
Council Members:

8. SVCE Decarbonization Grant Program Agreement
The only reason I paid attention to this item was because the Palo Alto Daily Post mentioned “energy generating workout equipment, a solar charging table, and an outdoor learning lab,” none of which are noted in the agenda.

I have many concerns about this proposal:

LOCATION: Report says it would be “adjacent to a playground, the police station, youth center, library, history museum, baseball fields, and City Hall.” Where exactly would it be and how big would it be? We have more demands for park space than we can currently satisfy:
dog parks, pickle-ball, bocce ball, parking places…
USE: “Utilizing the Energization Station as an outdoor gym, classroom, office, or study center … a space to either exercise, work, play, learn, charge their vehicle and/or explore the area.” -Safety: Who would be responsible for safety? If anyone can hop on a treadmill or bike, there’s a reasonable chance for someone to get hurt. Who’s liable for injuries and/or lawsuits? Why would it be better for children to do homework outdoors vs. in the library or community center where there’s some adult supervision? -Maintenance: “The lab will be equipped with tables, chairs, whiteboards, and shelves.” How about weather damage? What about vandalism? Who’s responsible for bringing everything indoors? Where would the items be stored? BUDGET: “The City of Los Altos is requesting $200,684 to design and construct the Energization Station. The City will contribute at least $8,500 to this installation and additional funding if necessary.” Most projects run over time and over budget. Whatever is spent initially, how much will be required over time to repair and replace damaged or stolen equipment from an outdoor facility?
STAFF TIME: There’s no assessment of oversight or maintenance on what appears to be a relatively complex project. The city is already short-staffed. -“During the course of the Project and for three (3) years thereafter from the receipt of the final Grant Funds, the Recipient agrees to maintain, intact and readily accessible, all communications, data, documents, reports, records, contracts, and supporting materials relating to the Project, as SVCE may require. The Recipient agrees to have financial and compliance audits performed as SVCE may require.” -”Public Tours will be given by City staff … colorful signage and the dynamic energy display unit will inform users about renewables, decarbonization, and the grid.” How 193
Agenda Item # 9.
many years did it take to get signage in the orchard?
CONFLICTING NEEDS: “Electrical Upgrades at Grant Park Community Center- The City of Los Altos is currently working on upgrading electrical capacity at the Grant Park Community Center ….” Is that true? Has work been started? The Grant Park upgrade has been funded and discussed for years, but I’m not aware there’s any work going on yet. It is far more important to use city funds and staff time at Grant Park before considering an “energization” station.

This project is a very low priority and is fraught with risks. I urge you to reject it before any more time is spent on it so we can focus on more important issues facing the city.

Thanks for listening,
Pat Marriott
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AGENDA REPORT SUMMARY
Meeting Date: March 28, 2023
Subject: 2023 Update of City Investment Policy
Prepared by: June Du, Finance Director
Approved by: Gabriel Engeland, City Manager
Attachment(s):

1. Investment Policy (with track changes to highlight edits) Initiated by:

Staff and the Financial Commission
Previous Council Consideration:

February 8, 2022
Fiscal Impact:

None
Environmental Review:

Not applicable
Policy Question(s) for Council Consideration:
 Does the Council wish to adopt the recommended investment strategies contained within the revised Investment Policy?
Summary:
 Revised investment strategies have been recommended by the Financial Commission Staff Recommendation:

Move to adopt the revised Investment Policy for 2023.

City Manager
Reviewed By:

City Attorney Finance Director

GE JH JD

CONSENT CALENDAR
Agenda Item #
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2 Subject: 2023 Update of City Investment Policy
Purpose
The City Council’s primary responsibilities over the investment function include approving the Policy, annually reviewing such policy, reviewing investment reports issued by the City Treasurer, authorizing bond documents and other unique financing transactions, and authorizing any deviations from the City’s investment policies.

Background
The City’s Investment Policy sets forth guidelines that ensure the City’s funds are invested in compliance with State law and in a prudent manner. The Policy is reviewed on an annual basis by the Financial Commission. The Policy was reviewed by the Financial Commission on February 27, 2023.

At the commission meeting of January 24,2022, the City’s investment advisor, PFM Asset Management (PFM), presented recommended changes to the Policy as the following, the changes were recommended by the Finance Commission and later adopted by the City Council on February 8, 2022.

1. Add additional language under Section M: Prohibited Investment Instruments The city shall not invest in any security that could result in zero interest accrual if held to maturity, except as provided in the subsequent paragraph.

Notwithstanding the prohibitions stated in the above paragraph, effective January 1, 2021, the City may invest in securities issued by, or backed by, the United States government that could result in zero-or negative-interest accrual if held to maturity, in the event of, and for the duration of, a period of negative market interest rates. The City may hold these instruments until their maturity dates. Securities described in this paragraph shall remain in effect only until January 2026, and as of that date is repealed.

2. LAIF Deposit Limit increase to $75 million.
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3 Discussion/Analysis
On an annual basis, the Financial Commission reviews the Investment Policy to ensure there is diversity, while still fiscally prudent when investing the City’s funds. The recommended changes by the Financial Commission to the Investment Policy January 2023 includes the following:

1. Code section 53601& 53646 update:

Senate Bill 1489, also known as the Local Government Omnibus Act of 2022, made a number of changes to Code, including several that impact the investment of public funds and the reporting practices of public agencies. Changes made to Code section 53601, the section of Code that governs the investment of public funds, include language stating that an investment’s term or remaining maturity shall be measured from the settlement date to final maturity, and, that a security purchased in accordance with Code section 53601 shall not have a forward settlement date exceeding 45 days from the time of investment. SB 1489 also increased the deadline for quarterly reports in Code section 53646 (b)(1) to 45 days from 30 days. As the Policy does not reference a reporting deadline, no change is required.

2. Allowing the city to invest in Joint Power Authorities such as the California Asset Management Program (CAMP).

To address these Code changes, we have made the following recommended edits in the City’s Investment Policy:

1. In section K, Maximum Maturity, we recommend adding language stating that a security’s maturity is calculated from settlement date to maturity date. We also recommend adding the new Code language regarding forward settlement.

2. In Exhibit A, under City of Los Altos Allowable Investments, we recommend adding shares of beneficial interest issued by a Joint Powers Authority as an allowable investment.

Investments. The pool’s rating and investment advisor must meet the requirements outlined if CA Code 53601.

Recommendation
The staff recommends Option 1.
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CITY OF LOS ALTOS

INVESTMENT POLICY
JANUARY 2022
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2 A. INTRODUCTION
This document sets forth policies designed to ensure that the City’s public funds are invested prudently, efficiently, and in compliance with legal requirements. It was developed in accordance with California Government Code Sections 53600 et seq. and is reviewed by the Financial Commission and adopted by City Council each fiscal year.

This document discusses the most important elements of investment management in one comprehensive centralized format and is organized into the following areas of discussion:

A. Introduction
B. Scope
C. Prudent Investor Standard
D. Objectives
E. Guiding Principles
F. Delegation of Authority
G. Financial Commission Oversight
H. Ethics and Conflict of Interest
I. Safekeeping and Custody
J. Reporting Requirements
K. Maximum Maturity
L. Permitted Investment Instruments
M. Prohibited Investment Instruments
N. Glossary of Investment Terms
B. SCOPE
This policy covers all public funds under the direction of the Finance/Administrative Services Director or their successor within the following fund types:
 Governmental Funds
 Proprietary Funds
 Fiduciary Funds
The investment of bond proceeds is governed separately by the provisions of the relevant bond documents.

C. PRUDENT INVESTOR STANDARD
All persons involved in investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing the City’s investment portfolio shall act with the 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 City, 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 City.

D. OBJECTIVES
The primary objectives, in order or their priority, of the City’s investment program shall be:

Safety - The preservation of the principal of the City’s overall investment portfolio is the foremost objective of the investment program.

Liquidity - The City’s investment portfolio will remain sufficiently liquid to meet its cash flow requirements.

Return on Investment - The City’s investment portfolio shall be designed with the objective of attaining a reasonable and prudent rate of return consistent with the risk constraints and liquidity demands imposed by its safety objective and cash flow requirements.
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3 E. GUIDING PRINCIPLES
The following guiding principles are important in the pursuit of such objectives:

Minimizing Liquidity, Credit and Market Risks: Investment decisions should minimize liquidity, credit or market risks in the following ways:

Liquidity Risk - The risk that the investment portfolio will not provide adequate cash liquidity for operations shall be mitigated by structuring the portfolio so that securities mature at the same time that major cash outflows occur, thus minimizing the need to sell securities prior to their scheduled maturity date unless market conditions present favorable repositioning opportunities.

Credit Risk - The risk of loss of principal associated with the failure of any one security issuer shall be mitigated by investing in only very safe highly-rated securities and prudently diversifying the investment portfolio to avoid concentrating investments in specific security types, maturity durations, or in individual financial institutions.

Market Risk - The risk of market value fluctuations arising from overall changes in the general level of interest rates shall be mitigated through maintaining prudent duration levels, staggering investment maturity dates evenly over a desired overall duration target and prohibiting the taking of short positions (selling securities that the City does not own) and interest rate sensitive derivative instruments. It is explicitly recognized herein, however, that in a diversified portfolio occasional measured losses are inevitable and must be considered within the context of the overall portfolio's structure and expected investment return, with the proviso that adequate diversification and credit analysis have been implemented.

Market Average Rate of Return: The investment portfolio shall be managed to attain a market average rate of return based upon a benchmark that is appropriate for a fund of like character and aims and commensurate with the portfolio’s current investment strategy.

Non-Speculative Approach: This policy specifically prohibits all speculative investment practices, including, but not limited to, those that seek to gain or profit through transactions of high and unusual risk, or that utilize securities whose price is dependent upon or derived from one or more underlying assets (Derivatives).

Professionalism and Public Trust: The City’s investment portfolio is subject to public review and evaluation and shall be designed and managed with the high degree of professionalism that is worthy of the public trust.

F. DELEGATION OF AUTHORITY
The management responsibility for the City’s investment program has been delegated to the Finance/Administrative Services Director or their successor. The Finance/Administrative Services Director or their successor shall monitor and review all investments for consistency with this policy, and may delegate investment decision-making and execution authority to investment advisors in accordance with an agreement as authorized by the City Council. The investment advisor shall follow and comply with this policy and all other written instructions provided by the City. The Finance/Administrative Services Director or their successor may, in writing, further delegate such investment authority to designated management staff in the Executive and/or Finance Department in the event of the Finance/Administrative Services Director or their successor’s absence or other unavailability. The Finance/Administrative Services Director or their successor shall prepare and file documents with all financial institutions with which the City conducts investment activities certifying the names of those persons authorized to effect transactions on behalf of the City.

G. FINANCIAL COMMISSION OVERSIGHT
The Financial Commission consists of citizen members appointed by the City Council. The Financial Commission shall meet periodically, at least quarterly, to review general investment strategies and monitor the results of the City’s investment portfolio in coordination with the Finance/Administrative Services Director or their successor or finance staff designee. The Financial Commission shall also review any proposed changes to this policy before they are submitted to the City Council for final adoption. 200
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4 H. ETHICS AND CONFLICT OF INTEREST
All persons involved in the investment process shall refrain from personal business activities that could conflict with proper execution of the City’s investment program or which could impair their ability to make impartial decisions.

I. SAFEKEEPING AND CUSTODY
All investments of the City’s investment portfolio shall have the City of Los Altos as the registered owner, and all interest and principal payments and withdrawals shall indicate the City of Los Altos as the payee.

All securities shall be safely kept with a qualified financial institution, contracted independently by the City as a third party. All securities shall be acquired by the safekeeping institution on a "delivery-vs.-payment" (DVP) basis. In other words, the security must be delivered before funds are released. The DVP basis for delivery applies also to the delivery and safekeeping of repurchase agreement collateral.

J. REPORTING REQUIREMENTS
The Finance/Andre Director will present to the City Council quarterly investment reports, which will present an overall summary of investment performance and include the following type of information:
 Description of investment instruments held
 Interest rate and yield to maturity
 Maturity dates
 Purchase price
 Par value
 Current market value as of the date of the report, including the source of such valuation  Overall portfolio yield based on cost
 Total return (Quarterly)
 Benchmark comparisons
 Detailed transaction reports shall be made available upon request by any governing member or member of the public
K. MAXIMUM MATURITY
The City may not invest in a security with a maturity date that exceeds five years from the date of purchase.

For purposes of compliance with this Policy, an investment’s term or remaining maturity shall be measured from the settlement date to final maturity. In addition, a security purchased shall not have a forward settlement date exceeding 45 days from time of investment.

L. PERMITTED INVESTMENT INSTRUMENTS
The California Government Code in section 53600 et seq. sets certain limits on the investment instruments, credit criteria, maximum maturity dates, concentration percentages and other conditions of eligibility in which a government agency’s funds may be invested. However, this policy sets limits on the investment of the City’s investment portfolio that are more restrictive than such California law. The California Code limits and the more restrictive limits applicable to this policy are listed and summarized in the attached Exhibit A (City of Los Altos Allowable Investments). The City’s investment portfolio may be invested only in those instruments permitted in Exhibit A.

It is important to note that from time to time the City may be invested in a security whose rating is downgraded subsequent to the original date of purchase. The Finance/Administrative Services Director or their successor, 201
Agenda Item # 10.
5 directly or indirectly through the delegation of authority to the investment advisor, shall monitor the status of security ratings. When the City uses the services of outside investment advisors and a rating of a prior-purchased security drops below the minimum allowed rating category for that given investment type, the investment advisor shall immediately notify the Finance/Administrative Services Director or their successor and recommend a plan of action.

M. PROHIBITED INVESTMENT INSTRUMENTS
Investment of the City’s investment portfolio in any of the following identified instruments is specifically prohibited:
 Reverse Repurchase Agreements - Differs from a Repurchase Agreement in the sense that a reverse repurchase agreement is one that sells security positions in return for cash with an agreement to repurchase the securities for an agreed upon price.
 Derivatives - Financial instruments whose values are based on or determined by another security, financial instrument or index, including instruments used for hedging.  California State and Local Agency Obligations - Obligations of the State of California or any local agency within the state, including bonds payable solely out of revenues from a revenue producing property owned, controlled or operated by the state or any local agency or by a department, board, agency or authority of the state or any local agency. Nothing in this section shall be construed to exclude the City’s participation in the Local Agency Investment Fund (LAIF) operated by the State of California Treasurer’s Office.  Other State Obligations - Registered debt obligations of any of the other 49 United States beyond California, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by a state or by a department, board, agency, or authority.  Prohibited Investments Cited in California Government Code Section 53601.6 including, but not limited to:
o Inverse Floaters
o Range Notes
o Mortgage Derivatives or other similar asset backed securities o Interest Only Strips
o Zero Interest Coupon Securities*
*Additionally, the City shall not invest in any security that could result in zero interest accrual if held to maturity, except as provided in the subsequent paragraph.

The City may hold these instruments until their maturity dates. Securities described in this paragraph shall remain in effect only until January 1, 2026, and as of that date is repealed.

N. GLOSSARY OF INVESTMENT TERMS
Exhibit B contains a glossary of key investment terms that may be used in this policy. 202
Agenda Item # 10.
6 Exhibit A
City of Los Altos Allowable Investments
203
Agenda Item # 10.
7 Exhibit A
City of Los Altos Allowable Investments
Investment Instruments Calif. Code
Limitation
City Policy Limitation
Collateralized Bank Deposits No term
100% of portfolio
No term
100% of portfolio
State of California - Local Agency
Investment Fund (LAIF)
No term
100% of portfolio
Max $75 million
No term
100% of portfolio
Max $75 million
Money Market Mutual Funds (SEC
Rule 2a7)
No term
20% of portfolio
10% per issuer
Overnight
20% of portfolio
US owned Calif. institution 10% of
portfolio per issuer
U.S. Treasuries 5 years
100% of portfolio
5 years
100% of portfolio
Federal Agencies (including,
mortgage-backed securities, callable
securities)
5 years
100% of portfolio
5 years
100% of portfolio
20% of portfolio per issuer
35% of portfolio in callables
Municipal Obligations (including
notes issued by the State of
California, California local agencies,
and the other 49 states)
5 years
100% of portfolio
5 years
30% of portfolio
Credit rating category of “A” or its
equivalent or higher by a nationally
recognized statistical-rating organization
(NRSRO)
Other1
Bank /Time Certificates of Deposit 5 years
100% of portfolio
3 years
50% of portfolio
10% of portfolio per issuer
US owned Calif. institution
FDIC/NCUA Insured and/or
collateralized in Treasuries and Agencies
Negotiable Certificates of Deposit 5 years
30% of portfolio
5 years
30% of portfolio
3% of portfolio per issuer
Credit rating category of “A” or its
equivalent or higher by a NRSRO
Corporate Medium Term Notes 5 years
30% of portfolio
Credit rating of no
less than A by any
NRSRO
5 years
30% of portfolio
3% of portfolio per issuer
Credit rating category of “A” or its
equivalent or higher by a NRSRO

1Municipal bonds must also be either (1) a general obligation bond whose principal and interest payments are secured by the full faith and credit of the issuer and supported by either the issuer’s unlimited or limited taxing power, or (2) an essential service bond secured with revenue from a water, sewer, power or electric system. 204
Agenda Item # 10.
8 Investment Instruments Calif. Code
Limitation
City Policy Limitation
Repurchase Agreements 1 year
100% of portfolio
102% Collateral
180 days
20% of portfolio
10% of portfolio per issuer
102% Collateral Treasuries/Agencies
US owned Calif. financial institution
Bankers’ Acceptances 180 days
40% of portfolio
30% per issuer
180 days
20% of portfolio
10% of portfolio per issuer
US owned Calif. institution
Commercial Paper 270 days
25% of portfolio
10% per issuer
270 days
25% of portfolio
5% of portfolio per issuer
Credit rating of no less than “A-1” or
its equivalent or higher by an NRSRO.

Obligations issued by the
International Bank for Reconstruction
and Development, International
Finance Corporation, or InterAmerican Development Bank 5 years
30% of portfolio
Credit rating of no
less than AA by an
NRSRO
5 years
10% of portfolio
Credit rating of no less than AAA by an
NRSRO
Asset-Backed Securities25 years
20% of portfolio
Credit rating of no
less than AA by an
NRSRO
5 years (WAM)
20% of portfolio
3% of portfolio per issuer
Security shall be rated AAA by an
NRSRO
Supranationals 5 years
30% of portfolio
Credit rating of no
less than AA by an
NRSRO
5 years
20% of portfolio
Credit rating of no less than AA by an
NRSRO
Shares of beneficial interest issued by
a Joint Powers Authority
100% of portfolio
Advisor requirements
100% of portfolio
Advisor and rating requirements must
meet CA Code 53601

2 Asset-Backed Securities shall not include mortgage related products issued by commercial entities. Investments in asset-backed securities shall generally be limited to those in “senior” tranches. 205
Agenda Item # 10.
9 Exhibit B
Glossary of Investment Terms
206
Agenda Item # 10.
10 Exhibit B
Glossary of Investment Terms
Agency - See "Federal Agency."
Asset-Backed Securities (ABS) - Securities whose income payments and hence value is derived from and collateralized (or "backed") by a specified pool of underlying assets which are receivables. Pooling the assets into financial instruments allows them to be sold to general investors, a process called securitization, and allows the risk of investing in the underlying assets to be diversified because each security will represent a fraction of the total value of the diverse pool of underlying assets. The pools of underlying assets can comprise common payments credit cards, auto loans, mortgage loans, and other types of assets. Interest and principal is paid to investors from borrowers who are paying down their debt.

Bankers' Acceptance (BA's) - A draft or bill of exchange drawn upon and accepted by a bank frequently used to finance the shipping of international goods. Used as a short-term credit instrument, bankers' acceptances are traded at a discount from face value as a money market instrument in the secondary market on the basis of the credit quality of the guaranteeing bank.

Benchmark - A market index used as a comparative basis for measuring the performance of an investment portfolio. A performance benchmark should represent a close correlation to investment guidelines, risk tolerance, and duration of the actual portfolio's investments.

Certificate of Deposit (CD) - Bank obligation issued by a financial institution generally offering a fixed rate of return (coupon) for a specified period of time (maturity). Can be as long as ten years to maturity, but most CDs purchased by public agencies are one year and under.

Collateral - Investment securities or other property that a borrower pledges to secure repayment of a loan, secure deposits of public monies, or provide security for a repurchase agreement.

Commercial Paper - Short-term unsecured promissory note issued by a company or financial institution that is issued at a discount and matures for par or face value. This instrument usually matures at a maximum maturity of 270 days and bears a short-term debt rating by one or more Nationally Recognized Statistical Rating Organization (NRSRO).

Corporate Medium Term Notes - A debt instrument issued by a corporation with a maturity of greater than one year and less than ten years. Used frequently to refer to corporate notes of medium maturity (five years and under).

Custody - Safekeeping services offered by a bank, financial institution or trust company, referred to as the “custodian.” Service normally includes the holding and reporting of the customer's securities, the collection and disbursement of income, securities settlement and market values.

Delivery Versus Payment (DVP) - The settlement procedure in which securities are delivered versus payment of cash, but only after cash has been received. Most security transactions, including those through the Federal Reserve Securities Wire system and DTC, are done DVP as a protection for both the buyer and seller of securities.

Depository Trust Company (DTC) - A firm through which members can use a computer to arrange for securities to be delivered to other members without physical delivery of certificates. A member of the Federal Reserve System and owned mostly by the New York Stock Exchange, the Depository Trust Company uses computerized debit and credit entries. Most corporate securities, commercial paper, CDs, and BAs clear through DTC.
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Agenda Item # 10.
11 Derivative - A financial instrument whose value is based on or determined by another security, financial instrument, or index.

Diversification - Dividing investment funds among a variety of security types, maturities, industries, and issuers offering potentially independent returns.

Federal Agency - These are Federal government sponsored and/or owned entities created by the U.S.

Congress, generally for the purpose of acting as a financial intermediary by borrowing in the marketplace and directing proceeds to specific areas of the economy considered to otherwise have restricted access to credit markets. The largest federal agencies are Fannie Mae, Freddie Mac, FHLB, FFCB, and TVA.

Federal Reserve System (the Fed) - The independent central bank system of the United States that establishes and conducts the nation's monetary policy. This is accomplished in three major ways: (1) raising or lowering bank reserve requirements, (2) raising or lowering the target Federal Reserve Funds Rate and Discount Rate, and (3) in open market operations by buying and selling government securities. The Federal Reserve System is made up of twelve Federal Reserve District Banks, their branches, and many national and state banks throughout the nation. It is headed by the seven-member Board of Governors known as the “Federal Reserve Board” and led by its Chairman.

Federal Treasuries - A collective term used to describe debt instruments backed by the U.S. Government and issued through the U.S. Department of the Treasury that includes Treasury bills, Treasury notes, and Treasury bonds. Also a benchmark term used as a basis by which the yields of non-Treasury securities are compared (e.g., "trading at 50 basis points over Treasuries").

Fiduciary Funds - Term used when a governmental unit acts in a fiduciary capacity such as a trustee or agent.

The government unit is responsible for handling the assets placed under its control.

Government Sponsored Enterprise (GSE) - A privately owned entity subject to federal regulation and supervision, created by the U.S. Congress to reduce the cost of capital for certain borrowing sectors of the economy such as students, farmers, and homeowners. GSEs carry the implicit backing of the U.S.

Government, but they are not direct obligations of the U.S. Government. For this reason, these securities will offer a yield premium over Treasuries. Examples of GSEs include: FHLB, FHLMC, FNMA, and SLMA.

Governmental Funds - Term used in Government Accounting to apply to all funds except for the profit and loss funds (e.g., enterprise fund, internal service fund) and trust and agency funds. Examples of government funds are the general fund, special assessment fund, and capital projects fund. Governmental funds use the modified accrual accounting method.

Government Instrumentalities (Supranationals) – Entities formed by two or more central governments with the purpose of promoting economic development for the member countries. Supranational institutions finance their activities by issuing debt, such as supranational bonds. Examples of supranational institutions include the European Investment Bank and the World Bank. Similarly to the government bonds, the bonds issued by these institutions are considered direct obligations of the issuing nations and have a high credit rating.

Index - A compilation of statistical data that tracks changes in the economy or in financial markets.

Interest-Only (IO) Strips - A security based solely on the interest payments from the bond. After the principal has been repaid, interest payments stop and the value of the security falls to nothing. Therefore, IOs are considered risky investments and are usually associated with mortgage-backed securities. 208
Agenda Item # 10.
12 Inverse Floater - A floating rate security structured in such a way that it reacts inversely to the direction of interest rates. Considered risky as their value moves in the opposite direction of normal fixed income investments and whose interest rate can fall to zero.

Investment Advisor - A company that provides professional advice managing investment portfolios offers investment recommendations and/or research in exchange for a management fee.

Liquidity – This is a measure of the relative ease of converting an asset into cash without significant loss of value and the level of cash and near-cash items in a portfolio of assets. This term also describes the marketability of money market security correlating to the narrowness of the spread between bid and ask prices.

Local Agency Investment Fund (LAIF) - Special fund in the California State Treasurer’s Office which local agencies may access to deposit funds for short-term investment and reinvestment.

Market Value - The fair market value of a security or commodity or the price at which a willing buyer and seller would pay for a security.

Maturity Date - Date on which principal payment of a financial obligation is due.

Money Market Mutual Fund (2a-7) - A type of mutual fund that invests solely in money market instruments, such as Treasury bills, commercial paper, bankers' acceptances, and repurchase agreements. Money market mutual funds are registered with the SEC under the Investment Company Act of 1940 and are subject “rule 2a-7” which significantly limits average maturity and credit quality of holdings.

Mortgage-Backed Securities (MBS) - Mortgage-backed securities represent an ownership interest in a pool of mortgage loans made by financial institutions, such as savings and loans, commercial banks, or mortgage companies, to finance the borrower's purchase of a home or other real estate. The majority of MBS are issued and/or guaranteed by GNMA, FNMA and FHLMC. There are a variety of MBS structures, some of which can be very risky and complicated. All MBS have reinvestment risk as actual principal and interest payments are dependent on the payment of the underlying mortgages which can be prepaid by mortgage holders to refinance at lower rates or simply because the underlying property was sold.

Mortgage Pass-Through Securities - A pool of residential mortgage loans with the monthly interest and principal distributed to investors on a pro-rata basis. Largest issuer is GNMA.

Municipal Note/Bond - Debt issued by a state or local government unit or public agency. The vast majority of municipals are exempt from state and federal income tax, although some non-qualified issues are taxable.

Mutual Fund - Portfolio of securities professionally managed by a registered investment company that issues shares to investors. Many different types of mutual funds exist (bond, equity, money market fund); all except money market funds operate on a variable net asset value (NAV).

NRSRO - “Nationally Recognized Statistical Rating Organization.” An entity designated as a rating organization that the SEC has recognized as having a strong national presence in the U.S. NRSROs provide credit ratings on corporate and bank debt issues. Only ratings of an NRSRO may be used for the regulatory purposes of rating. They include Moody’s, Standard & Poor’s, and Fitch among others.

Par Value - Face value, stated value or maturity value of a security.

Principal - Face value of a financial instrument on which interest accrues which may be less than par value if some principal has been repaid or retired. For a transaction, principal is par value as a factor of price and includes any premium or discount.
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Agenda Item # 10.
13 Proprietary Funds - In governmental accounting, one having profit and loss aspects; therefore it uses the accrual rather than modified accrual accounting method. The two types of proprietary funds are the Enterprise Fund and the Internal Service Fund.

Prudent Investor Standard - Standard that requires that when investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency. This standard is more stringent than the “prudent person” standard as it implies a level of knowledge commensurate with the responsibility at hand.

Range Note - A type of structured note that accrues interest daily at a set coupon rate that is tied to an index.

Most range notes have two coupon levels; a higher accrual rate for the period the index is within a designated range, the lower accrual rate for the period that the index falls outside the designated range. This lower rate may be zero and may result in zero earnings.

Rate of Return - Amount of income received from an investment, expressed as a percentage of the amount invested.

Repurchase Agreement (Repo) - A short-term investment vehicle in which an investor agrees to buy securities from a counterparty and simultaneously agrees to resell the securities back to the counterparty at an agreed upon time and for an agreed upon price. The difference between the purchase price and the sale price represents interest earned on the agreement. In effect, it represents a collateralized loan to the investor, where the securities are the collateral. Can be DVP, where securities are delivered to the investor’s custodial bank, or “tri-party” where the securities are delivered to a third-party intermediary. Any type of security can be used as “collateral,” but only some types provide the investor with special bankruptcy protection under the law. Repos should be undertaken only when an appropriate approved banking master repurchase agreement is in place.

Reverse Repurchase Agreement (Reverse Repo) - This is a repo from the point of view of the original seller of securities. Used by dealers to finance their inventory of securities by essentially borrowing at short-term rates. Can also be used to leverage a portfolio and in this sense, can be considered risky if used improperly.

Safekeeping - Service offered for a fee, usually by financial institutions, for the holding of securities and other valuables. Safekeeping is a component of custody services.

Supranational Bonds - Are defined as those issued by entities formed by two or more central governments to promote economic development for the member countries. For example, United States dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, International Finance Corporation, or Inter-American Development Bank.

Total Return - Investment performance measured over a period of time that includes coupon interest, interest on interest, and both realized and unrealized gains or losses. Total return includes, therefore, any market value appreciation/depreciation on investments held at period end.

Weighted average maturity (WAM) - is the weighted average amount of time of the maturities on the underlying mortgages in a mortgage-backed security (MBS) and assets in asset backed securities (ABS). This term is used more broadly to describe maturities for these instruments as these securities invest in multiple specified pools of underlying assets and these underlying pools may have varying maturities. 210
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14 Yield to Maturity (YTM) - Calculated return on an investment, assuming all cash flows from the security are reinvested at the same original yield. Can be higher or lower than the coupon rate depending on market rates and whether the security was purchased at a premium or discount. There are different conventions for calculating YTM for various types of securities.
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Agenda Item # 10.

AGENDA REPORT SUMMARY
Meeting Date: March 28, 2023
Subject: Acceptance of Fiscal Year 2022 Audited Financial Statements and Compliance reports
Prepared by: June Du, Finance Director
Approved by: Gabriel Engeland, City Manager
Attachment(s):

1. Draft Annual Comprehensive Financial Report (ACFR)

2. Memorandum on Internal Control (MOIC)
Initiated by:

Staff and the Financial Commission
Previous Council Consideration:

N/A
Fiscal Impact:

None
Environmental Review:

Not applicable
Policy Question(s) for Council Consideration:
 Does the Council Accept the Fiscal Year 2022 Audited Financial Statements and Compliance reports?
Summary:
 The City’s Finance Department has prepared the FY2022 ACFR which was reviewed by the Finance Commission on March 20th, 2022. The Certified Public Accounting firm, Maze & Associates, has audited the financial statements in the report. The auditors have issued an opinion that the financial statements represent the position of the City fairly, in all material respects.

Staff Recommendation:

City Manager
Reviewed By:

City Attorney Finance Director

GE JH JD
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Agenda Item # 11.

Subject: Fiscal Year 2022 Annual Comprehensive Financial Report (ACFR) Date: March 28, 2023 Page 2
Accept the Comprehensive Annual Financial Report and compliance reports for the fiscal year ended June 30, 2022.

Purpose
A number of state and federal laws require that the City’s financial statements be audited annually by external auditors who are Certified Public Accountants. The result of the audit is a compilation of detailed financial statements, known as the Annual Comprehensive Financial Report (ACFR), prepared in accordance with generally accepted accounting principles (GAAP) as required by the Government Accounting Standards Board (GASB). The ACFR is a useful tool in understanding and evaluating the City’s financial condition.

Background
The audit typically begins a few months before the fiscal year-end with a review of the City’s financial processes and internal controls. However, the scope of the audit is to express an opinion on the City’s financial statements, not to express an opinion on the effectiveness of the City’s internal controls. Next, the auditor completes a site visit to conduct the interim audit procedures; however, due to the COVID-19 pandemic, this year the interim and final audits were performed remotely. Staff was available for questions using Zoom, Teams, and other forms of remote communication. The interim audit occurred in May and June 2022. The auditors completed those year-end testing procedures and an evaluation of fund balances in December 2022.

This is the seventh year that Maze & Associates has performed the City’s annual audit, and the City has received an “unmodified” or “clean” opinion.

The ACFR is presented to the Finance Commission for its review prior to being submitted to the City Council for review and acceptance. 213
Agenda Item # 11.

Subject: Fiscal Year 2022 Annual Comprehensive Financial Report (ACFR) Date: March 28, 2023 Page 3
Discussion/Analysis

READING THE ACFR AND RELATED DOCUMENTS

1. ACFR: The ACFR highlights both the results of operations during FY2022 and changes to fund balances. The report is divided into three major sections, as follows:
 Introductory Section – provides a narrative summary of changes in fund balances and highlights of the results of operations. It includes a letter of transmittal from management, an organizational profile, and a listing of key officers and personnel.
 Financial Section – presents the independent auditor’s report, management’s discussion and analysis of the financial reports, all of the financial statements, notes on the financial statements, and supplemental information.  Statistical Section – includes several unaudited schedules that provide comparative information over a 10-year period.

Select highlights from the ACFR are presented below. The full draft ACFR can be seen in Attachment 1.

2. Memorandum on Internal Control: In planning and performing the audit of the basic financial statements of the city, auditor also considered the City’s internal control over financial reporting as a basis for designing audit procedures. The communications to the city’s management presented in Attachment 2.
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Agenda Item # 11.

Subject: Fiscal Year 2022 Annual Comprehensive Financial Report (ACFR) Date: March 28, 2023 Page 4
FY2022 RESULTS
The City ended its fiscal year on a government-wide basis with total revenues of $67.3 million, which was an increase of $5.8 million or 9.5% compared to the prior year, and total expenses of $68.5 million, an increase of $18.5 million or 37.0%. The results represent combined government and business operations, with an overall decrease in net position of $1.2 million primarily due to a one-time $6.5 million elective contribution to CalPERS, increased salary, benefits, and inflationary pressure on the supply chain. The payments to CalPERS will provide long-term stability to the City’s pension costs and future liabilities.

Operational revenue gains were predominantly in Community Development and recreation activities. Sales tax, utility tax, and hotel occupancy tax have gradually recovered to pre-pandemic levels and have exceeded the projected budget. Property tax increased by $1.7 million. Sewer revenues increased by $1.2 million as projected, and solid waste revenues were stable and positioned to facilitate future operational and capital needs.

The increase in Government-wide expenses is the result of salary and benefit adjustments and using consultants and overtime to address existing staff vacancies. Expense increases also reflect inflation caused by supply chain shortages related to COVID-19. Resource use continues to reflect an emphasis on public safety, infrastructure maintenance, quality of life, and community development activity.

The City made significant progress on many capital improvement initiatives, which include maintenance and street resurfacing, streetscape and intersection improvements, and pedestrian and traffic safety enhancements throughout the City. The City has also made significant capital investments in the maintenance and improvement of the City-wide sewer systems.

General Fund Operating Results
The General Fund is the chief operating fund of the City. For the year ending June 30, 2022, the total fund balance was $19.6 million, $10.5 million of which is non-spendable, restricted, or has been committed or assigned to cover contingencies, claims, encumbrances, advances to other funds, and other City projects. The unrestricted unassigned fund balance is $9.1 million, an increase of $4.1 million from the prior year.

Revenues were $3.7 million higher in the fiscal year ended June 30, 2022, compared to last fiscal year, a change of 7.4%.

Expenditures increased $6.8 million in the fiscal year ended June 30, 2022, compared to the last fiscal year, a change of 10.5%. Significant changes in revenues and expenditures that affected the General Fund balances are discussed below:
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Agenda Item # 11.

Subject: Fiscal Year 2022 Annual Comprehensive Financial Report (ACFR) Date: March 28, 2023 Page 5
General Fund Revenues
Property Taxes overall increased by $1.6 million, or 5.7% compared to the prior year. This increase is primarily attributable to continued increases in property values (assessed value) and residential sales activity that increased the tax roll.

Sales and Use Taxes overall increased by $0.7 million, or 24.8% compared to the prior year. The revenue is almost recovered to the pre-pandemic level.

Utility user Taxes overall increased by $0.2 million, or 6.7% compared to the prior year. This increase was due to inflationary increases rather than an increased tax base.

Charges for Services increased by $0.7 million, or 23.1% compared to the prior year, mainly related to city facilities for recreational activities including the opening of the new Community Center.

Grants and donations decreased by $0.1 million or 2.5% compared to the prior year, mainly due to a reduction in CARES Act stimulus funds allocated to the City in fiscal year 2022.

Other Taxes increased significantly by $1.2 million, or 54.2% compared to the prior fiscal year, primarily due to the recovery from the pandemic of Transient Occupancy Taxes and real estate document transfer tax.

Interest and Rentals decreased by $1.1 million compared to the prior fiscal year, primarily due to the significant reduction in market interest rates applicable to the City’s investment funds.

General Fund Expenditures
Public Safety expenditures increased by $1.7 million, or 8.9% compared to the prior year primarily due to increased personnel and benefit costs and fire services contract costs, offset by lower other expenses.

Public works expenditures increased by $0.5 million, or 9.5% compared to the prior year, primarily due to salary increases.

Community development expenditures increased $0.1 million, or 1.8% compared to the prior fiscal year, primarily attributable to salary adjustments.

Recreation expenditures were $0.7 million, or 41.1% more than the prior year, primarily due to an overall increase in operations and the opening of the new Community Center and costs related to other city facilities.
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Agenda Item # 11.

Subject: Fiscal Year 2022 Annual Comprehensive Financial Report (ACFR) Date: March 28, 2023 Page 6
Administration and Finance expenditures increased by $6.3 million, or 81.4% compared to the prior year, primarily due to a one-time elective contribution of $6.5 million to CalPERS Pension and OPEB.

NEXT STEPS
Upon acceptance by the City Council, the ACFR will be submitted to the Government Finance Officers Association for consideration of a Certificate of Achievement for Excellence in Financial Reporting.
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Agenda Item # 11.

City of Los Altos
Annual Comprehensive
Financial Report
Fiscal Year Ended June 30, 2022
Adobe Creek, Shoup Park, Los Altos 218
Agenda Item # 11.
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Agenda Item # 11.

CITY OF LOS ALTOS, CALIFORNIA

ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2022
Prepared by

FINANCE DEPARTMENT
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Agenda Item # 11.

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221
Agenda Item # 11.

INTRODUCTORY SECTION
222
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Agenda Item # 11.

CITY OF LOS ALTOS
Annual Comprehensive Financial Report
For the Year Ended June 30, 2022

TABLE OF CONTENTS
INTRODUCTORY SECTION:

Letter of Transmittal .................................................................................................................................................. i List of Principal Officials ........................................................................................................................................ ix Organizational Chart ................................................................................................................................................ x GFOA Certificate of Achievement ......................................................................................................................... xi FINANCIAL SECTION:

Independent Auditor’s Report ......................................................................................................................... 1 Management’s Discussion and Analysis .......................................................................................................... 5 Basic Financial Statements:

Government-wide Financial Statements
Statement of Net Position ................................................................................................................. 29 Statement of Activities ..................................................................................................................... 30 Fund Financial Statements
Governmental Funds:

Balance Sheet ................................................................................................................................ 34 Reconciliation of the Governmental Funds - Balance Sheet with the Statement of Net Position .......................................................................................................................... 35 Statement of Revenues, Expenditures, and Changes in Fund Balances ........................................ 36 Reconciliation of the Net Change in Fund Balances - Total Governmental Funds with the Statement of Activities ............................................................................................... 37 Proprietary Funds
Statement of Net Position .............................................................................................................. 40 Statement of Revenues, Expenses and Changes in Fund Net Position ......................................... 41 Statement of Cash Flows ............................................................................................................... 42 224
Agenda Item # 11.

CITY OF LOS ALTOS
Annual Comprehensive Financial Report
For the Year Ended June 30, 2022
FINANCIAL SECTION (Continued):

Fiduciary Funds
Statement of Net Position .............................................................................................................. 44 Statement of Activities ................................................................................................................... 45 Notes to Basic Financial Statements ....................................................................................................... 47 Required Supplementary Information:

Cost-Sharing Multiple-Employer Defined Pension Plan:

Schedule of Proportionate Share of the Net Pension Liability and Related Ratio as of the Measurement Date .............................................................................................. 96 Schedule of Contributions ............................................................................................................. 97 Agent Multiple Employer Retiree Healthcare OPEB Plan:

Schedule of Changes in the Net OPEB Liability and Related Ratios – Retiree Healthcare OPEB Plan ..................................................................................... 98 Schedule of Contributions ............................................................................................................. 99 Notes to Schedule of Employer Contribution ............................................................................... 99 Schedules of Revenue, Expenditures, and Changes in Fund Balance - Budget and Actual:

General Fund ............................................................................................................................... 100 In-Lieu Park Land Special Revenue Fund .................................................................................. 101 Notes to Required Supplementary Information ..................................................................................... 102 Supplementary Information:

General Fund:

Combining Balance Sheet ............................................................................................................... 106 Combining Schedule of Revenues Expenditures and Changes in Fund Balances .......................... 107 225
Agenda Item # 11.

CITY OF LOS ALTOS
Annual Comprehensive Financial Report
For the Year Ended June 30, 2022
FINANCIAL SECTION (Continued):

Non-major Governmental Funds:

Combining Balance Sheet ........................................................................................................... 112 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ....................................................................................................................... 116 Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual:

Vehicle Impound Fund .............................................................................................................. 120 Supplemental Law Enforcement Fund ...................................................................................... 121 Gas Tax Fund ............................................................................................................................ 122 Proposition 1B Fund ................................................................................................................. 123 Community Development Block Grant Fund ........................................................................... 124 Downtown Parking Fund .......................................................................................................... 125 Traffic Impact Fee Fund ............................................................................................................ 126 Estate Donation Fund ................................................................................................................ 127 TDA Fund ................................................................................................................................. 128 PEG Fund .................................................................................................................................. 129 Vehicle Registration Fees Fund ................................................................................................ 130 SB1 Road Maintenance Rehabilitation Fund ............................................................................ 131 Traffic Congestion Relief Program Fund .................................................................................. 132 Measure B Fund ........................................................................................................................ 133 Public Art Fund ......................................................................................................................... 134 Equipment Replacement Capital Projects Fund ........................................................................ 135 Internal Service Funds:

Combining Statement of Net Position ...................................................................................... 138 Combining Statement of Revenues, Expenses and Changes in Fund Net Position .................. 139 Combining Statement of Cash Flows ....................................................................................... 140 Custodial Funds:

Combining Statement of Net Position ...................................................................................... 142 Combining Statement of Activities .......................................................................................... 143 226
Agenda Item # 11.

CITY OF LOS ALTOS
Annual Comprehensive Financial Report
For the Year Ended June 30, 2022
STATISTICAL SECTION:

Net Position by Component – Last Ten Fiscal Years ......................................................................... 149 Changes in Net Position – Last Ten Fiscal Years .............................................................................. 150 Fund Balances of Governmental Funds – Last Ten Fiscal Years ....................................................... 152 Changes in Fund Balances of Governmental Funds – Last Ten Fiscal Years .................................... 154 Tax Revenues by Source – Governmental Funds – Last Ten Fiscal Years ........................................ 156 Assessed Value of Taxable Property – Last Ten Fiscal Years ........................................................... 157 Assessed Value of Property by Use Code .......................................................................................... 158 Property Tax Dollar Breakdown ........................................................................................................ 159 Property Tax Dollars By Recipient Group ......................................................................................... 160 Direct and Overlapping Tax Rates – Last Ten Fiscal Years .............................................................. 161 Principal Property Taxpayers – Current Year and Nine Years Ago ................................................... 162 Property Tax Levies and Collections – Last Ten Fiscal Years ........................................................... 163 Ratios of Outstanding Debt by Type – Last Ten Fiscal Years ........................................................... 164 Schedule of Direct and Overlapping Bonded Debt ............................................................................ 165 Legal Debt Margin – Last Ten Fiscal Years....................................................................................... 166 Demographic Statistics – Last Ten Fiscal Years ................................................................................ 167 Principal Employers – Current Year and Four Years Ago ................................................................. 168 Full-time Equivalent City Employees by Function/Program – Last Ten Fiscal Years ...................... 169 Full-time Equivalent City Employees ................................................................................................ 170 Operating Indicators by Function/Program – Last Ten Fiscal Years ................................................. 171 Capital Asset Statistics by Function/Program – Last Ten Fiscal Years ............................................. 172 Trust and Agency Debt Administration – Last Ten Fiscal Years ....................................................... 173 227
Agenda Item # 11.

One North San Antonio Road
Los Altos, California 94022
February 20, 2023
Honorable Mayor
and Members of the City Council
City of Los Altos, California
We are pleased to present the Annual Comprehensive Financial Report (ACFR) of the City of Los Altos, California (the City) for the fiscal yearended June 30, 2022. This document provides citizens, businesses, property owners, investors, and other interested parties with an overview of the City's finances. The information in this ACFR is prepared in accordance with Generally Accepted Accounting Principles (GAAP) and includes an unmodified opinion on the report by the City's independent certified public accountants. Although we rely on the standards and expertise of these external authorities, the responsibility for the accuracy and fairness of this report ultimately rests with the City. For readers interested in a more detailed review of the City's financial statements, the Management's Discussion and Analysis (MD&A) is also included in this document. The MD&A reports on the financial highlights of the City and provides additional analysis on the variances and trends reported as part of the financial statements. The MD&A also discloses significant items affecting the financial condition of the City and is designed to be read in conjunction with this Letter of Transmittal and can be found immediately following the report of the independent auditors.

PROFILE OF THE CITY AND ITS SERVICES
Tree-lined streets and a small village atmosphere characterize Los Altos, which is in the heart of the worldfamous Silicon Valley. Just 40 miles south of San Francisco, Los Altos is a residential community with a population of approximately 31,000 served by seven small retail areas. The seven-square-mile residential city is developed with small businesses, schools, libraries, and churches. Incorporated on December 1, 1952, Los Altos is a general law city operating under the Council-Manager form of government. There are five Council members elected at large, serving four-year overlapping terms. Municipal services provided include police, street maintenance, engineering, community development, parks, recreation, and sewer. Fire protection is contracted with the Santa Clara County Central Fire Protection District.

City Structure
The City operates under the Council-Manager form of government, with five at-large Council Members elected to staggered four-year terms. The Mayor and Mayor Pro Term are elected by the Council from their membership, and each serves a one-year term. The City Council serves as the legislative and policy-making body of City government and is responsible for enacting City ordinances, adopting resolutions, approving the annual budget, appointing commissions and committees, and hiring the City Manager and City Attorney.
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Agenda Item # 11.

Letter of Transmittal (continued)
_____________________________________________________________________________________ The City Manager is responsible for implementing City Council policies, ordinances, and directives; overseeing day-to-day operations; and appointing the directors of the City's departments and all personnel.

As of June 30, 2022, the City had a permanent staff of 136 and augmented this staff with temporary, limited duration, and seasonal employees to address needs such as summer recreation programs. The City provides an array of services that include public safety/police services, park, recreation & Community Services, Executive, finance, human resources, public works, Environmental & Utilities Services and development services. Responsibilities in each service area include:
• Executive - includes The City Manager's Office, Economic Development, Emergency Preparedness, City Clerk's Office, City Attorney’s Office, Risk Management, Human Resources, Information Technology, and Public relations;
• Public Safety - includes all Police functions, comprised of Training, Communications, Patrol, Investigations, Community Policing, Animal Control, School Service Officers, Traffic Enforcement. Fire Services are contracted to the County. • Finance - includes Finance, Budget, Treasury, and Accounting. • Park, Recreation & Community Services - includes Parks, Facilities, Recreation Classes, Senior Services, Facility Rentals, Sports and Camps,
• Community Development Services- includes Building Code Enforcement, Planning, Housing, Business License and Transportation Planning.
• Public Works/ Engineering- includes managing the Capital Investment Program, Streets Project, and Transportation Planning.
• Environmental & Utilities Services - includes Sewer, Storm Drain Operations, and Environmental Sustainability Program.

The City also oversees the enterprise funds associated with Sewer and solid waste operations and several other special revenue funds such as the Park in Lieu fund, financial information for these operations is included in the ACFR. Library services are provided by The County. Fire services are contracted to the County, water utilities are provided by a separate special district, with their own governing body.

SERVICE EFFORTS AND MAJOR INITIATIVES
Service Efforts
In fiscal year 2022, the City continued its commitment to provide a high level of service to its residents and citizens, adhered to its adopted financial plan as evidenced by the budget-to-actual reporting presented within this document. The latter half of fiscal year 2022 saw the City face operational uncertainty due to the departure of the Finance Director, Senior Accountant and Accounting Technician compounded with the effects of the COVID-19 pandemic. Prudent and quick decision-making by the city manager helped speed the hire of an Interim Finance Director were engaged to meet the essential workloads in the Finance department. All major funds have performed within acceptable limits through proper stewardship and management.
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Agenda Item # 11.

Letter of Transmittal (continued)
_____________________________________________________________________________________ Major Initiatives
Capital Improvements: Fiscal year 2022 marked another year of capital investment into the community with further resources applied to City-wide improvements. Some of the key capital expenditures of note during fiscal year 2022 include the following:
• $2,161,056 – Annual Street & City Alley Resurfacing
• $1,102,380 – Fremont Avenue Pavement Rehabilitation
• $411,758 – Annual Street Slurry Seal and Stripping
• $988,017- Annual Sewer System Repair Program
• $911,682 – Los Altos Community Center Redevelopment
• $514,711 – Community Chamber AV Equipment
• $328,980 – Housing Element Update
• $265,553 – Police Records Management & Dispatch system Pedestrian Safety, Roads, and Walkways: Los Altos invests a significant amount of resources on a variety of roadway, pedestrian, and bikeway initiatives and improvements. Over $3.6 million was applied to street rehabilitation, resurfacing, sidewalk repairs, and street lighting systems which enhanced safety lighting and street striping. These efforts support the City’s highway condition index while increasing overall pedestrian, bicycle, and vehicle safety.

Civic Facilities: In fiscal year 2022, the City finished the construction phase state-of-the-art community center.

FINANCIAL CONTROLS AND PROCEDURES
Financial Policies: On an annual basis, the Council approves financial policies designed to promote sound financial management and ensure fiscal integrity over time. This ACFR reflects the implementation of these financial guidelines and presents all fund reserves and designations to define fund balance commitments and obligations as of the financial report date.

Internal Control Structure: City management is responsible for establishing and maintaining fiscal internal controls designed to safeguard the assets of the government from loss, theft, or misuse, and to ensure that accounting data is accurately compiled to allow for the preparation of financial statements in conformity with generally accepted accounting principles. The internal control structure is designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that: (1) the cost of controls should not exceed the benefits likely to be derived and (2) the valuation of costs and benefits require estimates and judgments by management. iii
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Agenda Item # 11.

Letter of Transmittal (continued)
_____________________________________________________________________________________ Cash Management Policies: It is the City’s practice to “pool” available cash from all funds for investment purposes. In accordance with the annually adopted investment policy, available cash is invested with the goal of safety, meaning the protection of principal, as the priority, ensuring adequate liquidity as the second priority, and maximizing yield as the third priority. This past year, the Local Agency Investment Fund (LAIF) earnings rate averaged 0.6%. Staff continues to act on Council direction to engage investment advisory services and continues to diversify the City’s investment portfolio as a means of mitigating the impact of interest rate swings. As always, the emphasis remains on preserving the safety of principal.

Strengthening Key Fund Reserves: This financial report reflects the attainment of judicious fiscal reserves noting continued funding to both capital and economic safety fund balances. As projected in the budget process, the results herein place the City in a position to maintain at least 20% of budget expenditures in General Fund reserve. In fiscal year 2022, the City contributed $5 million to CalPERS pension unfunded accrual liability (UAL) and $1.5 million to the California Employer’s Retiree Benefit Trust ( CERBT). The City will continue to prepare for the increase in the annual CalPERS payments and to rebuild the CalPERS Reserve.

Risk Management: The City is insured for general liability through the Bay Cities Joint Powers Insurance Authority that covers claims in an amount up to $10 million with a deductible or uninsured liability of upto $100,000 per claim. The City is self-insured for Workers’ Compensation and has an excess insurance policy for such claims up to the statutory limits. The City continues to maintain adequate funding levels to cover the cost of its actuarial obligations, but these rising cost areas will require continued attention in the coming years.

GASB 75 Compliance: This report complies with the provisions of Government Accounting Standard Board Statement #75 (GASB 75). This standard pertains to Other Post Employee Benefits (OPEB) and requires the completion of an actuarial study to account for post-employee benefit liabilities that exist.

This reporting requirement is described in financial note 12 of the ACFR and the related liabilities reflected in the statements. As of June 30, 2022, the City’s net OPEB obligation was valued at $0.78 million, an amount reflected in the government-wide statements. The City has contributed $1.5 million in CERBT in fiscal year 2022.

EXECUTIVE FINANCIAL OVERVIEW
This executive financial overview is presented as a supplement to the more detailed and comprehensive analysis presented in the MD&A. This section highlights key financial performance indicators for our major funds.

General Fund
The General fund, the primary operating fund of the City, favorably exceeded expectations with an operating surplus of $ 1.6 million (includes onetime American rescue plan act, ARPA funds of $3.6) million before transfers, for fiscal year 2022. At year end, the total General fund balance equaled $19.6 million with an unassigned fund balance of $9.1 million after commitments and assignments.

As planned for in the budget process, this surplus must be allocated to maintain the City’s Operating Reserve at 20% and allocating major funding to capital improvements, such as street maintenance and annual facilities improvements. At year end, the City’s Operating Reserve is at $8.8 million, 20.6%, and the Capital Project fund reserve is at $11.8 million. Non-operating and transfer activities are as follows:
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Agenda Item # 11.

Letter of Transmittal (continued)
_____________________________________________________________________________________ • $230,000 transfer in from Public safety grant funds and others • $292,614 transfer in from Enterprise fund to pay portion of the CalPERS UAL • $903,013 transfer out for equipment replacement
• $3,932,956 transfer out for capital projects
• $23,939 transfer out for Storm drain fund
• $384,000 transfer out for funding Internal Service fund The General fund’s key revenue streams continue to grow at a steady pace. Property tax, which accounts for nearly 57.8% of the City’s revenues, continues to be the strongest driver with an increase of 5.4% in fiscal year 2022 over the prior year.

Table of Revenues compared to Last Year and Current Year Budget Other Tax Revenues details
General fund revenues increased by 7.4% overall in contrast to a 6.4% increase in the prior year. Revenues came in above the annual budget estimates with Sales Tax, UUT, and Other Tax category being the front runners, 50.3% above the budget. Interest income had a large loss. The majority of the interest income loss was unrealized loss of the fair market value recognition on the investment portfolio at the June 30, 2022, measurement date. Property Tax grew with an increase of 5.7% from the prior year. Sales tax increased by

24.8%. In the City’s other taxes category, Transient Occupancy Tax (TOT) increased by 168.7% on actuals witness the recovery of the economy during the current COVID-19 pandemic. Real estate transfer tax and Revenues (in Millions) FY2021 Actual FY22 Budget FY22 Actual Actual Var% Budget Var% Property tax 28.5 30.3 30.1 5.7% -0.7%
Sales tax 3.0 3.5 3.7 24.8% 8.3%
Utility users 2.9 2.7 3.1 6.1% 13.3%
Other tax 2.3 2.4 3.5 53.7% 50.3%
Licenses, permits and fees 4.4 4.2 4.6 5.3% 11.0%
Grants and donations (Including ARPA) 4.0 3.6 3.9 -2.2% 8.4% Charges for services 3.0 2.8 3.6 23.1% 32.4%
Fines and forfeitures 0.1 0.1 0.2 30.5% 33.5%
Interest and rentals 0.2 0.4 -0.9 -616.0% -364.5%
Other 0.1 0.1 0.2 76.0% 61.6%
Total Revenues 48.4 50.0 52.0 7.4% 4.1%
Other Tax Revenues (In Millions) FY20 Actual FY21 Actual FY22 Actual Actual Var% Transient Occupancy Tax 2.4 0.7 1.8 168.7%
Motor Vehicle Tax 0.0 0.0 0.0 55.6%
Business License Tax 0.5 0.5 0.6 14.0%
Documentary Transfer Tax 0.6 0.9 1.0 7.0%
Construction Tax 0.1 0.2 0.1 -19.3%
Total Other Tax 3.6 2.3 3.5 53.7%
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Agenda Item # 11.

Letter of Transmittal (continued)
_____________________________________________________________________________________ documentary transfer tax, grew 7.0% primarily driven by higher real estate activity. Business license tax, license and permit fees increased based on development activity and timing of payments within the City. Recreation programs increased 317.8% due to the opening of the new Community Center and other city’s facilities.

General fund expenditures were 4.6% lower than final budget. The General Fund expenditures came in below General fund revenues by $1.6 million with one-time revenues related to grants American Rescue Plan Act (ARPA).

Other Funds
Capital Projects Fund: Expenditures in the Capital Projects fund were $7.4 million. The year end fund balance stood at $11.8 million. Based on commitments in the Capital budget for the period FY 22- 26, the reserves will be insufficient to fulfill commitments at the end of the FY2023 unless additional funding sources are identified and/or Capital projects are deferred or canceled.

Special Revenue, Internal and Enterprise Funds: All other Governmental and Business Type funds results were as expected. In Lieu Park Land, special revenue funds ended the year with a combined balance of $14.9 million while Enterprise funds ended the year with a combined net position of $30.3 million.

Fiduciary Funds: The City acts as a custodian of funds held for the benefit of others including the administration of the North County Library Authority (NCLA). The Blue Oak Lane Sewer special assessment district is classified in the custodial group in recognition of the limited nature of this debt which is fully collateralized by homeowner assessments without City obligation.

ECONOMIC TRENDS
Various factors influence our current economic outlook. Revenues overall were better than budget. The City’s sales and use tax is gradually recovering from the pandemic. However, the hotel tax is recovering at a slower pace, 75% of pre-pandemic level. Expenses are up markedly, due primarily to inflationary pressures and open positions that required consultants. City’s expenses increased 37% compared to FY2021.

Interest rates rose precipitously during the year. This was triggered by the Fed increasing interest rates in an effort to tackle high inflation. The Conference Board forecasts that economic weakness will intensify and spread more broadly throughout the US economy over the coming months with the possibility of a recession. This outlook is associated with persistent inflation and rising hawkishness by the Federal Reserve. The board forecasts that 2023 growth will slow to zero percent year‐ over‐year.

The US Bureau of Statistics reported that job openings rose during 2022 from the prior fiscal year. Per California Employment Development Department (EDD), the California’s unemployment rate1 is at 4.1%.

The last quarter of the fiscal year 2020 and the entirety of fiscal year 2021 were marked by the impacts of the novel corona virus, COVID‐19 pandemic. The declaration of local and state-wide emergencies and public health orders closed large parts of the economy to encourage physical distancing and protect public health. Since the initial public health orders, restrictions have been applied and lifted with regularity. This caused a severe impact on economic activity. However, for the past fiscal year sales tax has recovered to pre-pandemic levels. While transient occupancy tax continues to lag, it has improved substantially from fiscal year 2021 levels.
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Agenda Item # 11.

Letter of Transmittal (continued)
_____________________________________________________________________________________ As of November of 2022, the national unemployment rate2 was 3.6%, down from 6.0% in November of the
prior year and down from peak pandemic unemployment of 14.8% in April 2020. The San Jose-SunnyvaleSanta Clara Metropolitan statistical area reported an unemployment rate of 2.1% as of December 20223 .

As public health restrictions ease and City facilities and programs continue to reopen, the fiscal year 2022 & fiscal year 2023 budget includes increases in expenditures and additional staffing to support these changes. The economic recovery is expected to continue over the next two years. Accordingly, staff developed a budget for fiscal year 2022 that served as a bridge year between the deepest moments of the pandemic and the return to normalcy. We expect it to be a year of continued recovery from the economic recession triggered by the pandemic. Likewise, the budget for fiscal year 2023 will include the acknowledgment that some areas of operations are still likely to be in recovery, and not yet restored to pre‐ pandemic levels of operation.

The City continues to perform fairly but was unable to maintain target reserve levels without delaying or canceling capital projects. As we move forward, we remain constantly aware of the financial challenges that face all local municipalities in particular the financial challenges caused by the COVID-19 pandemic, the effects of which will continue to impact the City for multiple years to come. In addition, we continue to monitor and plan to address the significant rises in pension, healthcare, and construction costs. Given the reliance on property tax revenues and the higher revenues in Community Development and other revenue streams, we must remain ever vigilant in monitoring economic trends and long-term financial issues. Only through fiscal stewardship, proper budgeting and prudent use of our reserves, the City of Los Altos will be set to continue its commitment to taking care of its capital needs and residents for the foreseeable future.

1. https://edd.ca.gov/en/about_edd/news_releases_and_announcements/unemployment-november-2022/

2. https://www.bls.gov/cps/

3. https://www.bls.gov/charts/metro-area-employment-and-unemployment/metro-area-unemployment-rates-map.htm# vii
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Agenda Item # 11.

Letter of Transmittal (continued)
_____________________________________________________________________________________

INDEPENDENT AUDIT
The public accounting firm of Maze and Associates performed the annual independent audit. The auditors’ report on the City’s financial statements is included in the financial section of this report.

AWARDS
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City for its ACFR for the fiscal yearending June 30, 2021. In the last 16 years, the City has achieved this prestigious award. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized ACFR. This report must satisfy both generally accepted accounting principles and applicable legal requirements.

A Certificate of Achievement is valid for a period of one year only. We believe that our current ACFR continues to meet the Certificate of Achievement Program’s requirements, and we are submitting it to the GFOA to determine its eligibility for another certificate.

ACKNOWLEDGEMENTS
The preparation of this report could not have been accomplished without the efficient and dedicated services of the Finance Division staff, Minh Nguyen, and Laura Knott. Every member of the department deserves recognition and thanks for their commitment to the City and their profession. We also want to thank Maze and Associates, our independent auditors, for their professionalism in performing this yearend financial audit, as well as the members of the Financial Commission for their dedication and expertise to help shape policies and procedures. We would also like to thank the members of the City Council, Jon Maginot and the Executive Team for their leadership and oversight in managing the financial operations of the City.

Respectfully submitted,
Gabriel Engeland June Du
City Manager Finance Director
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Agenda Item # 11.

City of Los Altos
List of Principal Officials
As of June 30, 2022

ELECTED OFFICIALS
Mayor .................................................................................. Anita Enander Vice Mayor ........................................................................ Sally Meadows City Council ........................................................................ Jonathan Weinberg City Council ........................................................................ Lynette Lee Eng City Council ........................................................................ Neysa Fligor

APPOINTED OFFICIALS
City Manager ...................................................................... Gabriel Engeland City Attorney ...................................................................... Jolie Houston

EXECUTIVE TEAM
(As of January 1, 2023)
Assistant City Manager ..................................................... Jon Maginot Development Services Director ....................................... Nick Zornes Chief of Police ..................................................................... Angela Averiett Environmental and Utilities Services Director…………… Aida Fairman Finance Director ................................................................ June Du Human Resources Director ............................................... Irene Barragan Silipin Public Works Director ....................................................... Jim Sandoval Parks, Recreation & Community Services ........................ Manuel Hernandez ix
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Agenda Item # 11.

City of Los Altos
Citizens
City Council
Anita Enander, Mayor
Sally Meadows, V. Mayor
Jonathan Weinberg
Lynette Lee Eng
Neysa Fligor
Commissions
Complete Streets – Design Review
Environmental – Public Arts – Senior – Youth
Commissions
Financial – Historical – Library
Parks and Recreation – Planning
City Manager
Gabriel Engeland
City Attorney
Jolie Houston
Office of the
City Manager
Finance Public Safety Development
Services
Public Works Environmental &
Utilities Services
Parks, Recreation
& Community
Services
Gabriel
Engeland
City Clerk
Public
Information
Risk
Management
Human
Resources
IT
June Du
Finance
Angela
Averiett
Communications
Police Patrol
Investigations
Traffic
Operations
Emergency Prep
Fire Services
Nick
Zornes
Building
Planning
Economic Dev
Environmental
Jim Sandoval
Engineering
Special Projects
Streets
Aida
Fairman
Environmental
Sewers
Manny Hernandez
Youth/Teens
Adults/Seniors
Community
Events
Performing &
Visual Arts
Health &
Wellness
Parks & Facilities
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Agenda Item # 11.

Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Los Altos
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2021
Executive Director/CEO
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Agenda Item # 11.

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Agenda Item # 11.

INDEPENDENT AUDITOR'S REPORT
To the Honorable Members of the City Council
City of Los Altos, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Los Alto, California (City), as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the Table of Contents.

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City as of June 30, 2022, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirement relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of the financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.
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Agenda Item # 11.

Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Misstatements are considered material if, individually or in the aggregate, they could reasonably be expected to influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.

Change in Accounting Principles
Management adopted the provisions of the Governmental Accounting Standards Board Statement No. 87 – Leases, which became effective during the year ended June 30, 2022.

As discussed in Note 10 to the financial statements, the beginning balances of leases receivable and deferred inflows of resources related to leases were restated and increased by $6,649,732 as of July 1, 2021. As a result, the net effect on beginning fund balance was zero. 2 241
Agenda Item # 11.

Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis and other required supplementary information as listed in the Table of Contents be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The accompanying Supplementary Information, as listed in the Table of Contents, is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the Supplementary Information is fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Information
Management is responsible for the other information included in the annual report. The other information comprises the Introductory Section and Statistical Section listed in the Table of Contents, but does not include the basic financial statements and our auditor’s report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.

In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.
3 242
Agenda Item # 11.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated February 20, 2023, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.

Pleasant Hill, California
February 20, 2023
4 243
Agenda Item # 11.

City of Los Altos
Management’s Discussion and Analysis, Continued
For the year ended June 30, 2022
As management of the City of Los Altos (City), we offer readers of the City’s financial statements this narrative overview and analysis of the financial activities of the City for the fiscal year ended June 30, 2022, in accordance with standards established by the Governmental Accounting Standards Board. We encourage readers to consider the information presented here, in conjunction with the additional information furnished in the Letter of Transmittal, which can be found in the preceding introductory section of this report, and with the City’s basic financial statements and accompanying notes to those financial statements.

USING THIS ANNUAL REPORT
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the City’s basic financial statements, which are comprised of three components: 1) government-wide financial statements; 2) fund financial statements; and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves.

Reporting on the City as a Whole
Government-wide Financial Statements: The government-wide financial statements are designed to provide readers with a broad overview of the City’s finances in a manner similar to a private sector business.

The statement of net position presents information on all City assets, deferred outflows of resources, liability, and deferred inflows of resources, with the difference between the assets plus deferred outflows of resources and liability plus deferred inflows of resources as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating.

The statement of activities presents how the City’s net position changed during the most recent fiscal year.

All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave).

The government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities).

The governmental activities of the City include general government, public safety, maintenance, and public works services, planning, building, engineering, and recreation. The City’s business-type activities include sewer, solid waste, and storm drain.

The government-wide financial statements can be found on pages 27 to 31 of this report.

Reporting on the City’s Most Significant Funds
Fund Financial Statements: A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. The City’s funds can be divided into three categories: governmental funds; proprietary funds; and fiduciary funds.
5 244
Agenda Item # 11.

City of Los Altos
Management’s Discussion and Analysis, Continued
For the year ended June 30, 2022
Notes to the Basic Financial Statements. The notes provide additional information that is essential for a full understanding of the data provided in the government-wide and fund financial statements.

In addition to the basic financial statements and accompanying notes, this report also presents certain required and other supplementary information, such as budgetary comparison information relating to the City’s General Fund. The report added major special revenue fund, the schedule of changes in the City's net pension liability for the miscellaneous plan, the schedule of the City's proportionate share of the safety cost-sharing plan and the schedules of the City's pension contributions to each plan. This information is intended to furnish additional detail to support the basic financial statements.

Governmental Funds: Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the governmentwide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year.

Such information may be useful in evaluating a government’s near-term financing requirements.

Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions. Both the governmental fund balance sheet and governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.

The City maintains 22 individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the General Fund, In-Lieu Park Land Special Revenue Fund, and Capital Project Fund, each of which are major funds. Data from the other 19 governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these non-major governmental funds is provided in the form of combining statements elsewhere in the fund financial statements section of this report.

The City adopts a budget annually for the General Fund, Special Revenue Funds, (except for the Storm Drain Deposits Fund), and Equipment Replacement Capital Projects Fund that is effective July 1 for the ensuing fiscal year. A budgetary comparison statement has been provided for several key governmental funds.

The basic governmental fund financial statements can be found on pages 33 to 37 of this report.

Proprietary Funds: The City maintains two types of proprietary funds. Services for which the City charges customers a fee are generally reported in the City’s enterprise funds. These proprietary funds, like the government-wide statements, provide both long-term and short-term financial information. Internal service funds are an accounting device used to accumulate and allocate costs internally among the City’s various functions. The City uses internal service funds to account for its City dental plan and unemployment insurance, as well as Workers’ Compensation and Liability Insurance costs. Because these services predominantly benefit the governmental function, they have been included in the government-wide financial statements and, accordingly, the related intra-fund charges have been eliminated. 6 245
Agenda Item # 11.

City of Los Altos
Management’s Discussion and Analysis, Continued
For the year ended June 30, 2022
Proprietary fund financial statements provide the same type of information as the government-wide financial statements, only in more detail. All four internal service funds are combined into a single, aggregated presentation in the proprietary fund financial statements. Individual fund data for the internal service funds is provided in the form of combining statements elsewhere in this report. The City’s three enterprise funds (Sewer, Solid Waste and Storm Drain) are considered major funds and are presented as such in the fund financial statements. The City follows the practice of adopting annual budgets for these operations as well.

The combining statements referred to earlier in relation to non-major governmental funds, proprietary and internal service funds, are presented immediately following the notes to the financial statements.

Combining and individual fund statements and schedules can be found on pages 109 to 119 of this report.

Notes to the Basic Financial Statements: The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. These can be found on pages 47 to 91 of this report.

Other Information: In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the City’s budget-to-actual financial comparisons for the General Fund. The City has elected to present this information within the basic financial statement and financial statement sections of the report.

The City as Trustee
Fiduciary Funds: The City is the trustee, or fiduciary, for the North County Library Authority (NCLA) and one special assessment districts –Blue Oak Sewer Lane improvements. Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the City’s own programs. The City is responsible for ensuring that the assets reported in these funds are used for their intended purposes.

In summary, the various sections of this financial report are arranged as follows:

Financial
Section (I)
Management
Discussion
& Analysis
Government
Wide
Financial
Statements (II)
Statements of
Net Assets &
Activities
Fund
Financial
Statements (III)
Budgetary
Fund Statements
Notes to
Financial
Statements (IV)
Combining
Financial
Statements &
Schedules (V)
Non Major
Governmental &
Proprietary
Funds
Statistical
Section (VI)
(Un-audited)
Summary----------------------------------------------------------------Detail 7 246
Agenda Item # 11.

City of Los Altos
Management’s Discussion and Analysis, Continued
For the year ended June 30, 2022

FINANCIAL HIGHLIGHTS
Financial highlights for the year ended June 30, 2022, include the following:

The City ended its fiscal year on a government-wide basis with total revenues of $67.3 million, which was an increase of $5.8 million or 9.5% compared to the prior year, and total expenses of $68.5 million, an increase of $18.5 million or 37.0%. The results represent combined government and business operations, with an overall decrease in net position of $1.2 million primarily due to a one-time $6.5 million elective contribution to CalPERS, increased salary, benefits, and inflationary pressure on the supply chain. The payments to CalPERS will provide long-term stability to the City’s pension costs and future liabilities.(See tables 2 and 5 for additional information).

The General Fund reported an operating surplus of $1.6 million before transfers in/(out). The General Fund transferred funds to the Capital Projects Fund to support the rehabilitation and replacement of City’s infrastructure.

General Fund revenues increased to $52.0 million, up $3.6 million from the prior year's $48.4 million. Expenditure increased to $50.4 million, up $9.5 million the from prior year's $40.9 million.

General Fund unassigned/unrestricted fund balance for the current year totaled $9.1 million, an increase of $4.2 million or 85.7% when compared to prior year reported at $4.9 million. The unassigned fund balance represents 18% of General Fund expenditures. The Government Finance Officers Association guidelines state that General Fund reserves should be 10% to 25%. The City of Los Altos ended the fiscal year 2022 on a healthy reserve balance for general services.

Other Post-Employment Benefits (OPEB) liabilities for the City of Los Altos decreased by $0.8 million in the current fiscal year. The primary reason for the decrease in OPEB liabilities is due to an investment return of approximately $545,000. The funding status for the OPEB liabilities increased from 54.9% in fiscal year 2021 to 76.4% in fiscal year 2022. The OPEB funding status is above average when compared to most agencies in the State of California.

Net Pension Liability for the City of Los Altos decreased by $14.8 million to $27.7 million when compared to prior year reported at $42.4 million. The decrease is mostly attributable to the 21.3% investment earnings from California Public Employees’ Retirement System (CalPERS). It is important to note that in fiscal year 2023, the City expects to experience a loss based on the July 20, 2022, news release by CalPERS.

CalPERS announced a preliminary -6.1% net return on investments for the 12-month period that ended June 30, 2022
The City made significant progress on many capital improvement initiatives, which include maintenance and street resurfacing, streetscape and intersection improvements, and pedestrian and traffic safety 8 247
Agenda Item # 11.

City of Los Altos
Management’s Discussion and Analysis, Continued
For the year ended June 30, 2022
enhancements throughout the City. The City has also made significant capital investments in the maintenance and improvement of the City-wide sewer systems.

Government-Wide View
This section focuses on the net assets and changes in net assets of the City's governmental activities and business-type activities presented in the Government-wide Statement of Net Position and Statement of Activities. Changes in net position may serve over time as a beneficial indicator of the City’s financial position.
• City total assets increased by $3.6 million to $202.1 million, of which $170.1 million represented governmental assets and $32.1 million represented business-type assets. • City total liabilities decreased by $20.0 million to $48.9 million, of which $47.5 million were governmental liabilities and $1.4 million were business-type liabilities. • City total deferred outflows of resources related to its pension and OPEB obligations increased by $3.7 million to $ 13.5 million, of which $12.8 million represented governmental deferred outflows and $0.7 million were business-type deferred outflows.
• City total deferred inflows of resources related to the lease, pension, and OPEB increased by $28.4 million to $30.1 million, of which $29.0 million represented governmental deferred inflows and $1.1 million were business-type deferred inflows.
• City net position decreased by $1.2 million to $136.7 million, unrestricted net position increased $6.3 million to $10.1 million from $3.8 million, of which -$4.9 million represented governmental unrestricted net positions $14.9 million were business type. • Total government-wide revenues were $67.3 million, an increase of $5.8 million from the prior year's $61.5 million. The City’s governmental activities generated $58.5 million in revenue, while the business-type activities generated $8.8 million in revenue. • Total government-wide expenses were $68.5 million, an increase of $18.5 million from the prior year's $50.0 million. The City’s governmental activities reported $60.5 million in expenses, while the business-type activities reported $8.0 million in expenses. • Total governmental fund revenues increased $5.1 million to $58.5 million. Total governmental fund expenditures decreased to $60.5 million in fiscal year 2021-22, a decrease of $16.3 million from the prior year's $44.2 million.
• As noted earlier, net assets may serve over time as a useful indicator of a government’s financial position. In the case of the City of Los Altos, the governmental activities total assets exceeded liabilities by $106.4 million as of June 30, 2022, and $107.7 million as of June 30, 2021. The net assets for governmental activities decreased by a total of $1.3 million when compared to prior year. • Recorded capital assets, including infrastructure, represent only a portion of the City’s nonbusiness-type assets. Of the total net assets, $96.9 million is invested in capital assets, net of related debt, in the current year and $95.5 million in fiscal year 2021. 9 248
Agenda Item # 11.

City of Los Altos
Management’s Discussion and Analysis, Continued
For the year ended June 30, 2022
Fund Level View
• The General Fund realized an operating surplus of $1.6 million. Revenue surplus came from property tax $1.6 million, other taxes $1.3 million, sales tax $0.7 million, and charge for services $0.7 million.

These increases were offset by reduced interest and rental income $1.1 million. • Total governmental fund balances equaled $46.3 million at fiscal year-end, a slight increase from prior year’s fund balance of $46.2 million.
• General government capital spending totaled $6.7 million. The level of capital reinvestment in Los Altos reflects a sustained focus on the maintenance of streets, facilities, traffic calming efforts, and safety. The Capital Improvements Projects Fund balance increased by $0.3 million from $11.5 million in fiscal year 2021 $11.8 million due to the transfer of a part of the unassigned general fund balance from the prior year to the end of the year.
• The In Lieu Park Land Fund ended the year with a fund balance of $8.4 million with revenues of $3.5 million with expenditures and transfers out of $1.0 million spent on eligible projects and debt service payments.
• The Gas Tax Fund balance increased by $0.2 million to $1.8 million after funds were used for capital projects, including surplus revenue for the year.
• Sewer operations ended the year favorably with a net position of $25.1 million. Operating expenses increased by $1.6 million from $5.3 million in fiscal year 2021 to $6.9 million because of the planned activity to system maintenance.
• Solid waste operations ended the year favorably in net position of $5.2 million. Operating expenses increased by $0.7 million from $0.4 million in fiscal year 2021 to $1.1 million. • As in the prior year, the Storm Drain Fund has been exhausted. These operations are now funded by the General Fund and will continue to be so unless and until a fee-based model is implemented. • The Workers’ Compensation Fund ended the year with an unrestricted net position of $1.3 million, a decrease of $0.3 million compared to prior year’s $1.6 million due to claim activity and not providing additional funding.
• The General Liability Fund ended the year with a small negative balance in unrestricted net position, a decrease of $0.3 million compared to the prior year’s balance. • Other Non-Major Governmental Funds ended the year with a total combined fund balance of $6.5 million, an increase of $0.3 million from $6.2 million in fiscal year 2021. 10 249
Agenda Item # 11.

City of Los Altos
Management’s Discussion and Analysis, Continued
For the year ended June 30, 2022

GOVERNMENT-WIDE FINANCIAL ANALYSIS
This analysis focuses on the net position and changes in net position at the City-wide level as presented in the statement of net position and statement of activities which are summarized in the tables below as of June 30, 2022.

As noted earlier, the net position represents the difference between assets, the deferred outflow of resources and liabilities, and the deferred inflow of resources of the City's governmental activities and may over time serve as a useful indicator of the City’s financial position. The City’s governmental activities, assets, and deferred outflows exceeded liabilities and deferred inflows by $106.4 million on June 30, 2022. Table 1 summarizes the City’s governmental wide activities net position.

Restricted net assets of $14.4 million account for approximately 13.6% of the total net assets in the current year, which were $24.0 million in FISCAL YEAR 2021. The total restricted assets decreased by $9.6 million or 39.9% when compared to prior year. The decrease in restricted assets is primarily due to significant investments made by the City to improve the City’s infrastructure.

Table 1
Governmental Wide Activities Statement of Net Position (In Millions) Governmental Activities
Business- Type
Activities
2022 2021 2022 2021
Cash and investments $ 49.2 $ 50.8 $ 16.5 $ 17.0
Other assets 7.3 9.8 0.3 0.4
Capital assets 113.5 105.8 15.4 14.7
Total assets 170.1 166.4 32.1 32.1
Deferred outflows of resources 12.8 9.5 0.7 0.4
Current
liabilities 5.5 10.0 0.2 0.4
Non-current liabilities 42.0 56.7 1.2 1.8
Total liabilities 47.5 66.7 1.4 2.2
Deferred inflows of resources 29.0 1.5 1.1 0.1
Net Position

Net investment in capital
assets 96.9 95.5 15.4 14.7
Restricted 14.4 24.0 0.0 0.0
Unrestricted (4.9) (11.8) 14.9 15.5
Total net position $ 106.4 $ 107.7 $ 30.3 $ 30.2
11 250
Agenda Item # 11.

City of Los Altos
Management’s Discussion and Analysis, Continued
For the year ended June 30, 2022
Governmental Activities
Of the governmental activities total net position, $96.9 million, or 91.0%, reflects its net investment in capital assets (e.g., land, infrastructure, buildings, and equipment). The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending.

The governmental activities total Assets of $170.1 million represent a $3.6 million or a 2.2% increase, driven by higher receipts, capital activity, and lower spending due to the pandemic.

Capital Assets (net) increased by $7.7 million or 7.2% compared to prior year primarily driven by additions from capital projects activity in the current year.

The governmental activities, total liabilities of $47.5 million represent outstanding obligations for operations, capital projects, deposits held for development projects, long-term debt, and net pension liability. A portion of the governmental activities net position represents resources that are subject to restriction on how they may be used. Total liabilities decreased by $19.1 million or 28.7%.

The governmental activities deferred outflows of resources and deferred inflows of resources are related to the lease, pension and OPEB obligations. The total deferred outflows of resources increased $3.4 million, and deferred inflows of resources increased $27.5 million compared to the prior year.

The following charts summarize governmental activities programs and general City revenues available for funding all City programs and major expense program categories.

For the fiscal year ended June 30, 2022, total revenues from all sources relating to governmental activities excluding transfers were $58.5 million, and total expenses for all City programs relating to governmental activities were $60.5 million.
12 251
Agenda Item # 11.

City of Los Altos
Management’s Discussion and Analysis, Continued
For the year ended June 30, 2022
Charges for
Services, 18.2%
Operating Grants, 8.7%
Capital Grants, 1.4%
Property Tax, 51.4%
Sales & Use Tax,

6.4%
Utility User Tax,

5.3%
Other Taxes, 6.1%
Franchise Fee, 4.0%
Investment
Income, -2.3%
Other items, 0.8%
-10.0%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%
Governmental Activities
Sources of Revenue
FY 2022
Public Safety, 36.2%
Public works, 10.5%
Recreation, 4.4%
Community
Development, 12.0%
Adminstration,

24.0%
Debt Service, 1.4%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%
Governmental Activities
Expenses by Function
FY 2022
13 252
Agenda Item # 11.

City of Los Altos
Management’s Discussion and Analysis, Continued
For the year ended June 30, 2022
TABLE 2
Change in Net Position - Governmental Activities
(In Millions)
Revenues 2022 2021
Program revenues
Charges for service
$

10.7 $

7.3 Operating contributions and grants 5.1 4.8
Capital grants 0.8 1.8
Total program revenues 16.6 13.9
General revenues
Taxes:

Property 30.1 28.4
Sales and
use 3.7 3.0
Utility User 3.1 2.9
Other taxes 3.5 2.3
Franchise fees 2.3 2.2
Investment income (1.3) 0.2
Other 0.5 0.4
Total general revenues 41.9 39.5
Total revenues 58.5 53.4
Expenses
Public Safety 23.8 21.4
Public works 11.5 4.7
Recreation 2.9 2.6
Community Development 7.6 7.0
Administration / Finance 14.3 8.3
Interest on Long Term Debt 0.3 0.2
Total expenses 60.5 44.2
Excess (deficiency) before transfers (2.0) 9.1
Transfers (Net) 0.7 (2.8)
Change in net position - Governmental Activities (1.3) 6.3 Net Position - Beginning of year 107.7 101.4
Net Position - End of year
$
106.4
$
107.7
Table 2 shows that governmental activities expenses, which totaled $60.5 million, were lower than program revenues for governmental activities of $58.5 million. These program revenues included $10.7 million in charges for services, $5.1 million in operating grants and contributions, and $0.8 million in capital grants and contributions.
14 253
Agenda Item # 11.

City of Los Altos
Management’s Discussion and Analysis, Continued
For the year ended June 30, 2022
Governmental Fund Revenues
Charges for services include traffic safety fines, plan check fees, building inspection fees, other charges related to new construction, and fees charged for recreational activities and programs; these charges increased by $3.4 million or 46.4% primarily due to the community development activity and recreation programs being robust during the year.

Operating grants and contributions include amounts contributed by developers and pandemic-related stimulus funds received from the federal government. Those funds are restricted to either grant requirements, or have been designated for one-time expenses, while capital grants and contributions are required to fund capital investments. General revenues, as shown in Table 2 on the previous page, are available to pay for expenses not fully covered by program-generated revenues. During the year the City was granted $5.1 million in operating grants including the receipt of federal ARPA monies, while capital grants awarded decreased to $0.8 million from $1.8 million in fiscal year 2021 due to the impact of the pandemic.

Governmental Fund Expenditures
Public Safety expenditures increased by $2.4 million or 11.4% from the prior year. This increase is primarily due to higher pension costs from the City’s share of the Safety pension pool and higher depreciation charges and fire service contract costs, partly offset by vacant positions that decreased other personnel and benefit costs.

Public works expenditures increased by $6.8 million (144.6%) compared to the prior year primarily due to consultants filling vacant positions as well as higher operating and maintenance expenses due to inflation.

Community Development expenditures increased $0.6 million or 9.1% from the prior fiscal year primarily attributable to larger expenses in the housing element and increased community development activity.

Recreation expenditures were $0.3 million (13.2%) more than the prior year primarily due to an overall increase in operations and facilities costs, including costs related to the opening of the new community center.

Administration and Finance expenditures increased by $6.0 million (71.9%) compared to the prior year primarily due to a one-time elective contribution of $6.5 million to CalPERS and OPEB. 2022 2021 2022 2021
Public Safety $ 5.1 $ 4.3 $ (18.8) $ (17.0)
Public works 1.3 2.2 (10.2) (2.5)
Recreation 1.1 0.3 (1.8) (2.3)
Community Development 9.1 6.1 1.4 (0.9)
Administration / Finance 0.0 1.0 (14.2) (7.4)
Interest on Long Term Debt (0.3) (0.2)
Totals $ 16.6 $ 13.9 $ (43.9) $ (30.3)
Program Revenues Net (Expense) Revenue
Table 3
Governmental Activities
Program Revenues and Net (Expense) Revenue From Services (In Millions)
15 254
Agenda Item # 11.

City of Los Altos
Management’s Discussion and Analysis, Continued
For the year ended June 30, 2022
Business-Type Activities
As shown in Table 4 below, the net position of the City’s business-type activities was $30.3 million on June 30, 2022. Assets totaling $32.1 million included a total of $16.5 million in cash and investments, $0.3 in receivables and other assets, and $15.4 million in capital assets. Liabilities totaled $1.4 million including $0.2 million in current liabilities and $1.2 million in non-current liabilities such as compensated absences and other liabilities.
2022 2021
Cash and investments $ 16.5 17.0$
Other assets 0.3 0.4
Capital assets 15.4 14.7
Total assets 32.1 32.1
Deferred outflows of resources 0.7 0.4
Current liabilities 0.2 0.4
Non-current liabilities 1.2 1.8
Total liabilities 1.4 2.2
Deferred inflows of resources 1.1 0.1
Net Position
Net investment in capital assets 15.4 14.7
Restricted 0.0 0.0
Unrestricted 14.9 15.5
Total net position $ 30.3 30.2$
Table 4
Business - Type Activities Statement of Net Position
(In Millions)
16 255
Agenda Item # 11.

City of Los Altos
Management’s Discussion and Analysis, Continued
For the year ended June 30, 2022
Table 5 shows that Business type activities expenses, which totaled $8.0 million, were augmented by revenues of $8.8 million. These revenues included $9.2 million in charges for services and a $0.4 million reduction in interest earnings, and others, thus adding $0.1 million to the net position at the end of the year.

The Joint Sewer System Authority (JSSA) formed in 1968 by a joint exercise of powers among the Cities of Palo Alto, Mountain View, and Los Altos, constructed, maintains, and operates sewage treatment facilities serving its member cities. The City of Palo Alto acts as administrator for JSSA and bills each member its share of the operating costs. Los Altos is obligated through the year 2022 under an operating agreement with the City of Palo Alto for the water treatment plant and sewer services. Payments under this agreement are based on expected usage and are adjusted annually based on actual use and site operating costs.

As projected in budgetary estimates and the prior year’s financial reports, the Storm Drain fund has exhausted its reserves. Currently, the Storm Drain and Urban Runoff Pollution Control Programs (URPP) are categorized as enterprise activities but lack a fee that pays for these services. 2022 2021
Revenues
Program revenues
Charges for services 9.2 $ 8.0$
Total program revenues 9.2 8.0
General revenues
Investment income and other (0.4) 0.1
Total revenues 8.8 8.1
Expenses
Outside Services 5.7 4.4
Employee services 2.0 0.9
Depreciation 0.3 0.4
Total expenses 8.0 5.7
Excess (deficiency) before transfers 0.8 2.4
Transfers (0.7) 0.0

0.1 2.4
Change in net position - Business-type Activities
Net Position - Beginning of year 30.2 27.8
Net Position - End of year $ 30.3 30.2$
Table 5
Change in Net Position - Business-type Activities
(In Millions)
17 256
Agenda Item # 11.

City of Los Altos
Management’s Discussion and Analysis, Continued
For the year ended June 30, 2022

FUND FINANCIAL STATEMENTS AND FINANCIAL ANALYSIS
These statements provide more detailed information about the City’s major funds. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All the funds of the City can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds.

Governmental funds
Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a City’s or government agency’s near-term financing requirements.

The City has several governmental funds, of which three are considered major funds for presentation purposes. Each major fund is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balance. The City’s three major funds are - the General Fund, the In Lieu Parkland Fund, and the Capital Investment Program Fund.

Data from the other governmental funds are combined into a single, aggregated presentation.

The City Council adopts a biennial appropriated budget for its General Fund and other funds. Budgetary comparison statements have been provided in the Required Supplementary Information section for the general fund and major special revenue funds that demonstrate compliance with their budgets.

Proprietary funds
The City maintains two types of proprietary funds: Enterprise Funds and Internal Service Funds. Enterprise funds are used to report the same functions presented as business-type activities in government-wide financial statements. The City uses enterprise funds to account for its Sewer, Solid Waste, and Storm Drain operations, all of which are classified as major funds in the City’s Statement of Net Position. Internal service funds are used to accumulate and allocate costs internally among the City’s various functions and to build up reserves for future liabilities related to the workforce. The City uses internal service funds to account for such activities as dental reimbursements, Unemployment Insurance, Workers’ compensation, and liability insurance. Because these services solely benefit the governmental function, they have been included within governmental activities in the government-wide financial statements.

Proprietary fund financial statements provide the same type of information as government-wide financial statements, only in more detail. All nine internal service funds are combined into a single, aggregated presentation in the proprietary fund financial statements. Individual fund data for the internal service funds is provided in the form of combining statements in the Supplemental Information section of this report. 18 257
Agenda Item # 11.

City of Los Altos
Management’s Discussion and Analysis, Continued
For the year ended June 30, 2022
Fiduciary Funds
The City is the agent for certain agencies and assessment districts, holding amounts collected that await payment as directed. The City’s fiduciary activities are reported in the separate Statement of Fiduciary Net Position. These activities are excluded from the City’s other financial statements because the City is acting as a trustee for these funds and cannot use these assets to finance its own operations. The City’s fiduciary funds include The North Country Library Authority, and the Blue Oak Lane Sewer special district.

Summary Analysis of Governmental Funds
On June 30, 2022, the City’s governmental fund balances were $46.3 million, which is an overall increase of $0.1 million, or 0.2 %, as compared to the prior fiscal year. The following describes the specifics related to this increase:
• A decrease of $3.1 million in the General Fund fund balance, primarily due to the transfer of $6.5 million as an elective additional payment to CalPERS and OPEB. • The In-lieu Park Land fund had higher revenues from development activity of $3.5 million that were offset by transfers to the Capital projects fund for eligible projects and debt service payments related to the community center and the 2004 general obligation bond of $1.0 million. • An increase of $0.4 million in the capital projects funds was due to increased transfers from the general fund and the facilities reserve to fund capital projects such as facilities maintenance and construction of the Community Center
19 258
Agenda Item # 11.

City of Los Altos
Management’s Discussion and Analysis, Continued
For the year ended June 30, 2022

Revenues 2022 2021
Taxes:

Property $ 30.1 $ 28.5
Sales and Use 3.7 3.0
Utility Users 3.1 2.9
Other taxes 3.5 2.3
Licenses, permits and fees 4.9 4.6
Intergovernmental 5.8 4.2
Grants and Donations 0.5 4.0
Charges for services 4.1 3.2
Fines, forfeitures and penalties 0.2 0.1
Interest and Rentals (1.3) 0.2
Other 3.8 0.4
Total revenues 58.5 53.4
Expenditures
Current:

Public Safety 21.1 19.4
Public works 6.1 5.6
Recreation 2.5 1.8
Community Development 7.0 6.5
Adminstration / Finance 14.0 7.7
Capital Improvements 6.7 23.3
Debt Service
Principal 0.5 0.6
Interest and Fiscal Charges 0.3 0.2
Total expenditures 58.3 65.1
Excess (deficiency) before transfers 0.2 (11.7)
Other
Transfers (net) (0.1) 10.0
Net change in fund balance 0.1 (1.7)
Beginning Fund Balance* Reinstated $ 46.2 47.9
Ending Fund Balance $ 46.3 $ 46.2
Table 6
Statement of Revenues, Expenditures and Other Financing Sources/Uses Governmental Funds
(In Millions)
20 259
Agenda Item # 11.

City of Los Altos
Management’s Discussion and Analysis, Continued
For the year ended June 30, 2022
Detailed Analysis of Major Governmental Funds by Fund
General Fund
The General Fund is the chief operating fund of the City. For the year ending June 30, 2022, the total fund balance was $19.6 million, $10.5 million of which is non-spendable, restricted, or has been committed or assigned to cover contingencies, claims, encumbrances, advances to other funds, and other City projects. The unrestricted unassigned fund balance is $9.1 million, an increase of $4.1 million from the prior year.

Revenues were $3.7 million higher in the fiscal year ended June 30, 2022, compared to last fiscal year, a change of 7.4%.

General Fund Revenues
Property Taxes overall increased by $1.6 million, or 5.7% compared to the prior year. This increase is primarily attributable to continued increases in property values (assessed value) and residential sales activity that increased the tax roll.

Sales and Use Taxes overall increased by $0.7 million, or 24.8% compared to the prior year. The revenue is almost recovered to the pre-pandemic level.

Utility user Taxes overall increased by $0.2 million, or 6.7% compared to the prior year. This increase was due to inflationary increases rather than an increased tax base.

Charges for Services increased by $0.7 million, or 23.1% compared to the prior year, mainly related to city facilities for recreational activities including the opening of the new Community Center.

Grants and donations decreased by $0.1 million or 2.5% compared to the prior year, mainly due to a reduction in CARES Act stimulus funds allocated to the City in fiscal year 2022.

Interest and Rentals decreased by $1.1 million compared to the prior fiscal year, primarily due to the significant reduction in market interest rates applicable to the City’s investment funds. 21 260
Agenda Item # 11.

City of Los Altos
Management’s Discussion and Analysis, Continued
For the year ended June 30, 2022
General Fund Expenditures
Public Safety expenditures increased by $1.7 million, or 8.9% compared to the prior year primarily due to increased personnel and benefit costs and fire services contract costs, offset by lower other expenses.

Public works expenditures increased by $0.5 million, or 9.5% compared to the prior year, primarily due to salary increases.

Community development expenditures increased $0.1 million, or 1.8% compared to the prior fiscal year, primarily attributable to salary adjustments.

Administration and Finance expenditures increased by $6.3 million, or 81.4% compared to the prior year, primarily due to a one-time elective contribution of $6.5 million to CalPERS Pension and OPEB.

In-lieu Parkland
The In-lieu Parkland Fund had revenues of $3.8 million from In Lieu fees received during the year which was $2.2 million higher than the prior year. Expenses included a transfer out to the capital projects fund of $0.04 million and the debt service payments of $0.9 million.

Capital Investment Program Fund
The Capital Investment Program Fund accounts for funds used for capital improvements and significant maintenance projects. As of June 30, 2022, its fund balance was $11.8 million, primarily due to monies transferred from the General Fund.

The Capital budget also has planned appropriations of almost $48.8 million over the fiscal year 2023- fiscal year 2026 CIP plan from various funding sources such as Gas tax, General fund, and enterprise funds.

22 261
Agenda Item # 11.

City of Los Altos
Management’s Discussion and Analysis, Continued
For the year ended June 30, 2022
Summary Analysis of Proprietary Funds
As of June 30, 2022, the Enterprise Funds had a net position balance of $30.3 million, an increase of $0.1 million from the prior year. The net position balance of the Internal Service Funds is $1.3 million, down $1.0 million from the previous fiscal year, due to the underfunding of workers’ compensation and liability insurance.

Sewer Fund
This fund accounts for the administration and operation of the City’s sewer system. The total net position is $25.1 million, an increase of $0.5 million.

Solid Waste Fund
This fund accounts for the administration and operation of the City’s solid waste system. The total net position is $5.2 million, a decrease of $0.4 million.

BUDGETARY HIGHLIGHTS OF THE CITY’S GENERAL FUND
Over the course of the year, the City Council revised the City’s budget with adjustments for various revenue and expenditure changes. After taking into account these adjustments, General Fund actual revenues were higher than the final budget by $2.1 million, or 4.1%, which is primarily attributable to higher recreation fees, transient occupancy tax, sales tax, business License tax, and development fees offset by lower investment income.

General Fund actual expenditures were $2.5 million or 4.6% under the final budget, with savings from Community Development of $0.6 million, Public Works of $0.6 million, Administrative Services of $0.6 million, and Public Safety of $1.0 million, partly offset by higher Recreation of $0.7 million due to additional staff cost related to the reopening city’s facilities and the opening of the Community Center.

Net unassigned fund balance for the year was $9.1 million after accounting for contributions to the Capital projects, Debt service, and others. This amount represents a $4.1 million increase from the prior fiscal year. 2022 2021 2022 2021
Operating revenues $ 9.2 8.0$ $ 1.6 $ 0.3
Operating expenses 8.0 5.7 3.3 2.1
Operating income (loss) 1.2 2.3 (1.8) (1.9)
Non-operating revenues (expenses) (0.4) 0.1 0.0 0.0
Net income (loss) before contributions
and operating transfers 0.8 2.4 (1.8) (1.9)
Transfers in (out) and Capital Contributions (0.7) 0.0 0.8 0.0 Change in net position $ 0.1 $ 2.4 $ (1.0) $ (1.9)
Total Enterprise Funds Total Internal Service Funds
Table 7
Change in Fund Net Position - Proprietary Funds
(In Millions)
23 262
Agenda Item # 11.

City of Los Altos
Management’s Discussion and Analysis, Continued
For the year ended June 30, 2022

CAPITAL ASSETS AND LONG-TERM DEBT
Capital Assets
The City records all of its capital assets, including infrastructure in the Statement of Net Position.

Infrastructure includes roads, bridges, signals, and similar assets used by the entire population. The City has recorded its capital assets at historical cost or estimated historical cost if the actual historical cost was not available. In addition, donated fixed assets have been valued at their estimated acquisition value on the date donated.

On June 30, 2022, the cost of infrastructure and other capital assets recorded on the City's financial statements is shown in Table 8 on the next page:

On June 30, 2022, the City had assets of $106.7 million, net of depreciation, invested in a broad range of capital assets used in governmental activities, and $15.4 million, also net of depreciation, invested in Business-type activities assets, as shown in Table 8 above.

The City depreciates all its capital assets on a straight-line basis over their estimated useful lives. The purpose of depreciation is to spread the cost of a capital asset over the years of its useful life so that an allocable portion of the cost of the asset is borne by all users. Additional information on capital assets may be found in Notes 1 and 5 to the Basic Financial Statements. 2022 2021
Governmental activities
Land $ 11.7 $ 14.5
Construction in progress 30.8 45.6
Buildings 21.6 21.6
Improvements 6.5 6.5
Machinery and equipment 7.2 7.1
Infrastructure 68.1 46.6
Less accumulated depreciation (39.2) (36.1)
Totals $ 106.7 $ 105.8
Business-type activities
Construction in progress $ 2.0 $ 1.4
Buildings 18.0 17.9
Machinery and equipment 1.1 1.1
Infrastructure 8.4 8.1
Less accumulated depreciation (14.1) (13.8)
Totals $ 15.4 $ 14.7
Table 8
Capital Assets
(in Millions)
24 263
Agenda Item # 11.

City of Los Altos
Management’s Discussion and Analysis, Continued
For the year ended June 30, 2022
Long Term Debt
On June 30, 2022, the City's debt was comprised of the following:

The City made all required debt service payments on the issues listed above.

ECONOMIC OUTLOOK AND MAJOR INITIATIVES
The City has enjoyed several consecutive strong financial years principally driven by growth in property tax. Economic development and the strength of the Bay Area and national economy have driven continued growth in revenues. Meanwhile, expenses have grown due to inflationary increases, negotiated wage increases, and pension cost increases.

In fiscal year 2022, Los Altos gradually recovered from COVID-19. Sales tax increased to $ 3.7 million and Transit Occupancy Tax (TOT) increased to $1.8 million from $0.7 million in fiscal year 2021.

Even with the ongoing recovery from the COVID-19 pandemic, the city will continue to face financial challenges. There is economic uncertainty remaining from the pandemic and actions taken by the Federal Reserve to address inflationary pressures, and projected increases in pension costs. The City also faces the need to identify resources to replace aging capital infrastructure, which resources are presently inadequate to address all of the City’s forecast facilities needs.

The pension rate for fiscal year 2022 is based on information provided by the California Public Employee’s Retirement System (CalPERS). On July 20, 2022, CALPERS announced preliminary net investment rate of -6.1% for the fiscal year 20221
. This action, coupled with other assumption changes made by CalPERS, is resulting in a substantial increase in pension contributions for employers.

To address increasing retirement obligations, the City Council approved an elective contribution of $5 million to reduce future pension costs and $1.5 million to reduce future retiree health costs. 2022 2021
Governmental activities
2004 Certificate of Participation $ 0.8 $ 0.9
Community Center Lease 9.1 9.5
Compensated Absenses 1.5 1.9
Total governmental activities debt $ 11.3 $ 12.3
Business-type activities
Compensated Absenses $ 0.1 $ 0.1
Total business-type activities debt $ 0.1 $ 0.1
Total debt $ 11.4 $ 12.4
Table 9
Outstanding Debt
(In Millions)
25 264
Agenda Item # 11.

City of Los Altos
Management’s Discussion and Analysis, Continued
For the year ended June 30, 2022
The City Council has also identified funding capital infrastructure as a high-priority area and is working to identify current and future facility needs and potential funding options to address those needs.

Major Capital Projects in construction for fiscal years 2022 and beyond include:
• $2,161,056 – Annual Street & City Alley Resurfacing
• $1,102,380.32 – Fremont Avenue Pavement Rehabilitation • $988,017- Annual Sewer System Repair Program
• $911,682 – Los Altos Community Center Redevelopment
• $514,711 – Community Chamber AV Equipment
• $328,980 – Housing Element Update
• $411,758 – Annual Street Slurry Seal and Stripping
• $265,553 – Police Records Management & Dispatch system

CONTACTING THE CITY'S FINANCIAL MANAGEMENT
This Annual Comprehensive Financial Report is intended to provide citizens, taxpayers, investors, and creditors with a general overview of the City's finances. Questions about this report should be directed to the following address: City of Los Altos, Finance Department, 1 North San Antonio Road, Los Altos, California 94022.

A copy of this financial report can be found on the City’s website at http://www.losaltosca.gov, by selecting “Audited Financials” in the “Quick Links” section and then selecting “Other Financial Reports.”

1. https://www.calpers.ca.gov/page/newsroom/calpers-news/2022/calpers-preliminary-investment-return-2021-22 26 265
Agenda Item # 11.

GOVERNMENT-WIDE FINANCIAL STATEMENTS

STATEMENT OF NET POSITION

AND STATEMENT OF ACTIVITIES
27 266
Agenda Item # 11.

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267
Agenda Item # 11.

CITY OF LOS ALTOS

STATEMENT OF NET POSITION
JUNE 30, 2022
Governmental Business-Type
Activities Activities Total
ASSETS
Current assets:

Cash and investments (Note 2) $49,243,191 $16,453,261 $65,696,452 Accounts receivable 6,921,334 277,202 7,198,536
Prepaid items and inventory (Note 1H) 214,134 214,134
Internal balances
Total current assets 56,378,659 16,730,463 73,109,122
Noncurrent assets:

Restricted cash and investments (Note 2) 172,209 172,209 Lease receivable (Note 13) 6,801,674 6,801,674
Capital assets (Note 5):

Non-depreciable 42,390,055 2,023,475 44,413,530
Depreciable, net of accumulated depreciation 64,318,454 13,332,617 77,651,071 Total noncurrent assets 113,682,392 15,356,092 129,038,484 Total Assets 170,061,051 32,086,555 202,147,606

DEFERRED OUTFLOWS OF RESOURCES
Related to pension (Note 11) 11,251,917 534,617 11,786,534 Related to OPEB (Note 12) 1,585,051 119,305 1,704,356
Total deferred outflows of resources 12,836,968 653,922 13,490,890

LIABILITIES
Current liabilities:

Accounts payable 2,559,299 207,723 2,767,022
Interest payable 5,313 5,313
Accrued liabilities 773,146 773,146
Other payable 159,316 159,316
Compensated absences, due in one year (Note 7) 363,325 26,845 390,170 Claims and judgements, due in one year (Note 9) 1,118,735 1,118,735 Long-term debt, due in one year (Note 6) 553,877 553,877 Total current liabilities 5,533,011 234,568 5,767,579
Noncurrent liabilities:

Compensated absences, due in more than one year (Note 7) 1,089,973 65,423 1,155,396 Claims and judgments, due in more than one year (Note 9) 4,281,567 4,281,567 Net pension liability (Note 11) 26,578,991 1,062,360 27,641,351 Net OPEB liability (Note 12) 737,303 44,127 781,430
Long-term debt, due in more than one year (Note 6) 9,288,374 9,288,374 Total noncurrent liabilities 41,976,208 1,171,910 43,148,118 Total Liabilities 47,509,219 1,406,478 48,915,697

DEFERRED INFLOWS OF RESOURCES
Related to leases (Note 13) 6,794,296 6,794,296
Related to pension (Note 11) 21,080,731 970,194 22,050,925 Related to OPEB (Note 12) 1,075,352 80,940 1,156,292
Total deferred inflows of resources 28,950,379 1,051,134 30,001,513 NET POSITION (Note 8)
Net investments in capital assets 96,866,258 15,356,092 112,222,350 Restricted for:

Debt service 370,388 370,388
Special revenue programs:

Public safety 207,292 207,292
Recreation 8,350,611 8,350,611
Streets and roads 3,800,332 3,800,332
Public education 724,036 724,036
Parking 900,290 900,290
Other 73,670 73,670
Total Restricted Net Position 14,426,619 14,426,619
Unrestricted (4,854,456) 14,926,773 10,072,317
Total Net Position $106,438,421 $30,282,865 $136,721,286 See accompanying notes to financial statements
29 268
Agenda Item # 11.

Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions Total Primary government:

Governmental Activities:

Public safety $23,843,123 $396,464 $4,654,649 $5,051,113 Public works 11,493,177 9,322 427,145 $839,082 1,275,549 Recreation 2,942,416 1,138,718 1,138,718
Community development 7,635,888 9,062,802 1,277 9,064,079 Admin / community services 14,264,504 47,107 47,107
Interest on long-term debt 306,747
Total Governmental Activities 60,485,855 10,654,413 5,083,071 839,082 16,576,566 Business-type Activities:

Sewer 6,899,605 8,282,326 8,282,326
Solid waste 1,092,457 928,788 928,788
Storm drain
Total Business-type Activities 7,992,062 9,211,114 9,211,114 Total primary government $68,477,917 $19,865,527 $5,083,071 $839,082 $25,787,680 General revenues:

Taxes:

Property taxes
Sales and use taxes
Utility users' tax
Other taxes
Franchise fees
Total taxes
Interest income
Miscellaneous
Transfers (Note 3)
Total general revenues
Change in Net Position
Net Position-Beginning
Net Position-Ending
See accompanying notes to financial statements
Program Revenues

CITY OF LOS ALTOS

STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2022
30 269
Agenda Item # 11.

Net (Expense) Revenue and
Changes in Net Position
Governmental Business-type
Activities Activities Total
($18,792,010) ($18,792,010)
(10,217,628) (10,217,628)
(1,803,698) (1,803,698)
1,428,191 1,428,191
(14,217,397) (14,217,397)
(306,747) (306,747)
(43,909,289) (43,909,289)
$1,382,721 1,382,721
(163,669) (163,669)
1,219,052 1,219,052
(43,909,289) 1,219,052 (42,690,237)
30,086,157 30,086,157
3,738,113 3,738,113
3,093,784 3,093,784
3,545,907 3,545,907
2,339,196 2,339,196
42,803,157 42,803,157
(1,342,487) (471,307) (1,813,794)
484,686 44,027 528,713
668,675 (668,675)
42,614,031 (1,095,955) 41,518,076
(1,295,258) 123,097 (1,172,161)
107,733,679 30,159,768 137,893,447
$106,438,421 $30,282,865 $136,721,286
31 270
Agenda Item # 11.

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271
Agenda Item # 11.

MAJOR GOVERNMENTAL FUNDS
The funds described below were determined to be Major Funds by the City in fiscal 2022. Individual non-major funds may be found in the Supplemental section.

GENERAL FUND
Accounts for all financial resources necessary to carry out basic governmental activities of the City that are not accounted for in other funds. The General Fund supports essential City services such as police, fire, street and parks maintenance, maintenance services, community development and recreation activities. The General Fund also includes the Real Property Proceeds Funds, which accounts for the proceeds from the sale of real property and the Community Facilities Renewal Fund, which accounts for the revenues and expenditures related to the community facilities renewal efforts.

IN-LIEU PARK LAND FUND
Accounts for revenues received in lieu of park land dedications. The revenues are dedicated for purchasing or improving park or recreational facilities.

CAPITAL PROJECTS FUND
Accounts for the acquisition and construction of major capital projects and plans that are financed by resources other than proprietary funds.
33 272
Agenda Item # 11.

In-Lieu Capital Other Total
Park Land Projects Governmental Governmental
General Fund Fund Funds Funds
ASSETS
Cash and investments (Note 2) $15,979,547 $8,388,611 $12,049,736 $6,099,589 $42,517,483 Restricted cash and investments (Note 2) 172,209 172,209 Receivables, net of allowance for uncollectibles:

Accounts 5,842,234 239,870 803,287 6,885,391
Interest
Prepaids (Note 1H) 103,991 103,991
Lease Receivable (Note 13) 6,801,674 6,801,674
Inventory (Note 1H) 110,143 110,143
Due from other funds (Note 3) 392,175 392,175
Total Assets $29,229,764 $8,388,611 $12,289,606 $7,075,085 $56,983,066

LIABILITIES
Accounts payable $1,892,952 $38,000 $438,647 $158,609 $2,528,208 Accrued liabilities 773,146 773,146
Other payable 159,316 159,316
Due to other funds (Note 3) 392,175 392,175
Total Liabilities 2,825,414 38,000 438,647 550,784 3,852,845

DEFERRAL INFLOWS OF RESOURCES
Leases related (Note 13) 6,794,296 6,794,296
Total Deferred Inflows 6,794,296 6,794,296

FUND BALANCES
Fund balance (Note 8):

Nonspendable 214,134 214,134
Restricted 8,350,611 6,076,008 14,426,619
Assigned 10,337,346 11,850,959 683,947 22,872,252
Unassigned 9,058,574 (235,654) 8,822,920
Total Fund Balances 19,610,054 8,350,611 11,850,959 6,524,301 46,335,925 Total Liabilities, Deferred inflow of resources
and Fund Balances $29,229,764 $8,388,611 $12,289,606 $7,075,085 $56,983,066 See accompanying notes to financial statements

CITY OF LOS ALTOS

GOVERNMENTAL FUNDS

BALANCE SHEET
JUNE 30, 2022
34 273
Agenda Item # 11.

CITY OF LOS ALTOS
Reconciliation of the

GOVERNMENTAL FUNDS -- BALANCE SHEET
with the

STATEMENT OF NET POSITION
JUNE 30, 2022
Fund balances of governmental funds $46,335,925
Amounts reported for Governmental Activities in the Statement of Net Position are different because:

Capital assets used in Governmental Activities are not current financial resources. Therefore, were not reported in the governmental funds balance sheet:

Land, buildings, property, equipment and infrastructure, net 106,708,509 Interest payable on long-term debt does not require current financial resources. Therefore, interest payable was not reported as a liability in the governmental funds balance sheet. (5,313) Deferred outflows below are not current assets of financial resources; and the deferred inflows are not due and payable in the current period and therefore are not reported in the Governmental Funds.

Deferred outflows 12,836,968
Deferred inflows (22,156,083)
Long-term liabilities are not due and payable in the current period.

Therefore, they were not reported in the governmental funds balance sheet.

Long-term debt - current portion (553,877)
Long-term debt - noncurrent portion (9,288,374)
Net pension liability (26,578,991)
Net OPEB liability (737,303)
Compensated absences - current portion (363,325)
Compensated absences - noncurrent portion (1,089,973)
Internal service funds are used by management to charge the costs of certain activities to individual funds. The assets and liabilities of the internal service funds are included in governmental activities in the governmental-wide statement of net position. 1,330,258 NET POSITION OF GOVERNMENTAL ACTIVITIES $106,438,421
See accompanying notes to financial statements
35 274
Agenda Item # 11.

In-Lieu Capital Other Total
Park Land Projects Governmental Governmental
General Fund Fund Funds Funds

REVENUES
Property tax $30,086,157 $30,086,157
Sales tax 3,738,113 3,738,113
Utility users 3,093,784 3,093,784
Other tax 3,545,907 3,545,907
Licenses, permits and fees 4,624,201 $294,683 4,918,884 Intergovernmental $3,757,600 ($57,085) 2,135,803 5,836,318 Grants and donations 3,899,739 239,870 4,139,609
Charges for services 3,642,018 453,085 4,095,103
Fines and forfeitures 171,611 12,691 184,302
Interest and rentals (949,567) (231,752) (122,367) (1,303,686) Other 187,431 187,431
Total Revenues 52,039,394 3,525,848 182,785 2,773,895 58,521,922

EXPENDITURES
General government
Public safety 21,117,831 21,117,831
Public works 6,134,367 6,134,367
Recreation 2,540,420 2,540,420
Community development 6,620,784 346,373 6,967,157
Admin / community development 13,968,924 13,968,924
Capital improvements 38,000 6,671,936 3,123 6,713,059
Debt service:

Principal 533,961 533,961
Interest and fiscal charges 49,438 258,880 308,318
Total Expenditures 50,431,764 38,000 6,671,936 1,142,337 58,284,037

EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 1,607,630 3,487,848 (6,489,151) 1,631,558 237,885

OTHER FINANCING SOURCES (USES)
Proceeds from Lease
Transfers in (Note 3) 522,614 7,388,994 2,224,069 10,135,677 Transfers (out) (Note 3) (5,243,908) (917,515) (531,566) (3,558,013) (10,251,002) Total Other Financing Sources (Uses) (4,721,294) (917,515) 6,857,428 (1,333,944) (115,325) NET CHANGE IN FUND BALANCES (3,113,664) 2,570,333 368,277 297,614 122,560 BEGINNING FUND BALANCES 22,723,718 5,780,278 11,482,682 6,226,687 46,213,365 ENDING FUND BALANCES $19,610,054 $8,350,611 $11,850,959 $6,524,301 $46,335,925 See accompanying notes to financial statements

CITY OF LOS ALTOS

GOVERNMENTAL FUNDS

STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED JUNE 30, 2022
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Reconciliation of the

NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS
with the

STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2022
Net change in fund balances of governmental funds $122,560 Amounts reported for governmental activities in the Statement of Activities are different because:

CAPITAL ASSETS TRANSACTIONS
Governmental Funds report capital outlays as expenditures. However, in the government-wide statement of activities and changes in net position, the cost of those assets is capitalized and allocated over their estimated useful lives as depreciation expense. This is the amount of capital assets recorded in the current period.

Capital Asset Addition 6,852,326
Adjustment/retirement for capital assets (2,906,095)
Depreciation expense on capital assets is reported in the government wide statement of activities and changes in net position, but they do not require the use of current financial resources. Therefore, depreciation expense is not reported as expenditures in governmental funds. (3,077,205)
Repayment of bond principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the statement of net position.

Principal payment 534,612
The amounts below included in the Statement of Activities do not provide or require the use of current financial resources and therefore are not reported as revenue or expenditures in governmental funds (net change):

Compensated absences 470,740
Interest payable 920
Net OPEB liability, and related deferred outflows and inflows of resources 1,408,695 Net pension liability, and related deferred outflows and inflows of resources (3,728,946) Internal Service Funds are used by management to charge the costs of certain activities such as insurance, to individual funds. The net revenue of the internal service funds is reported with governmental activities. (972,865) Changes in net position of governmental activities ($1,295,258) See accompanying notes to financial statements
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MAJOR PROPRIETARY FUNDS
Proprietary funds account for City operations financed and operated in a manner similar to a private business enterprise. The intent of the City is that the cost of providing goods and services be financed primarily through user charges.

The City reported all of its Enterprise Funds as major funds in fiscal 2022.

SEWER
To account for the operation (including wastewater treatment) of the City's sewer treatment activities, a selfsupporting activity which provides services on a user charge basis.

SOLID WASTE
To account for the collection and disposal of solid waste, a self-supporting activity that provides service on a user charge basis.

STORM DRAIN
To account for the operation of the City's urban runoff and storm drain activities. 39 278
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CITY OF LOS ALTOS

PROPRIETARY FUNDS

STATEMENT OF NET POSITION
JUNE 30, 2022
Business-type Activities-Enterprise Funds Governmental
ActivitiesStorm Internal Service
Sewer Solid Waste Drain Totals Funds
ASSETS
Current Assets:

Cash and investments (Note 2) $11,372,023 $5,080,436 $802 $16,453,261 $6,725,708 Accounts receivable 159,224 117,978 277,202 35,943
Interest receivable
Total Current Assets 11,531,247 5,198,414 802 16,730,463 6,761,651 Non-Current Assets:

Capital assets (Note 5):

Nondepreciable 2,023,475 2,023,475
Depreciable 25,474,824 1,969,221 27,444,045
Less accumulated depreciation (12,142,207) (1,969,221) (14,111,428) Total capital assets, net 15,356,092 15,356,092
Total non-current Assets 15,356,092 15,356,092
Total Assets 26,887,339 5,198,414 802 32,086,555 6,761,651 Related to pension (Note 11) 534,617 534,617
Related to OPEB (Note 12) 93,740 8,522 17,043 119,305
Total Deferred Outflows 628,357 8,522 17,043 653,922

LIABILITIES
Current Liabilities:

Accounts payable 186,452 21,271 207,723 31,091
Accrued liabilities
Compensated absences (Note 7) 26,845 26,845
Claims and judgements (Note 9) 1,118,735
Total Current Liabilities 213,297 21,271 234,568 1,149,826 Long-Term Liabilities
Compensated absences (Note 7) 65,423 65,423
Claims and judgements (Note 9) 4,281,567
Net pension liabilities (Note 11) 1,062,360 1,062,360
Net OPEB liabilities (Note 12) 34,672 3,153 6,302 44,127 Total Noncurrent Liabilities 1,162,455 3,153 6,302 1,171,910 4,281,567 Total Liabilities 1,375,752 24,424 6,302 1,406,478 5,431,393 Related to pension (Note 11) 970,194 970,194
Related to OPEB (Note 12) 63,596 5,781 11,563 80,940
Total Deferred Inflows 1,033,790 5,781 11,563 1,051,134 Net investment in capital assets 15,356,092 15,356,092
Unrestricted (deficit) 9,750,062 5,176,731 (20) 14,926,773 1,330,258 Total Net Position (Deficit) $25,106,154 $5,176,731 ($20) $30,282,865 $1,330,258 See accompanying notes to financial statements
NET POSITION (Note 8)

DEFERRAL OUTFLOWS OF RESOURCES

DEFERRAL INFLOWS OF RESOURCES
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CITY OF LOS ALTOS

PROPRIETARY FUNDS

STATEMENT OF REVENUES, EXPENSES

AND CHANGES IN FUND NET POSITION
FOR THE YEAR ENDED JUNE 30, 2022
Business-type Activities-Enterprise Funds Governmental
ActivitiesStorm Internal Service
Sewer Solid Waste Drain Totals Funds

OPERATING REVENUES
Charges for services $8,282,326 $928,788 $9,211,114 $1,580,646 Total Operating Revenues 8,282,326 928,788 9,211,114 1,580,646

OPERATING EXPENSES
Outside services 4,986,448 700,303 5,686,751 54,237
Employee services 1,631,629 392,154 2,023,783
Repairs and maintenance
Claims and insurance 3,205,025
Administration 78,249
Depreciation 281,528 281,528
Total Operating Expenses 6,899,605 1,092,457 7,992,062 3,337,511 Operating Income (Loss) 1,382,721 (163,669) 1,219,052 (1,756,865)

NONOPERATING REVENUES
Interest income (expenses) (299,580) (171,727) (471,307) Grants and donations 44,027 44,027
Total Nonoperating Revenues (299,580) (127,700) (427,280)

OTHER FINANCING SOURCES (USES)
Transfers in (Note 3) $23,939 23,939 1,234,000
Transfers (out) (Note 3) (554,612) (138,002) (692,614) (450,000) Total Other Financing Sources (Uses) (554,612) (138,002) 23,939 (668,675) 784,000 Change in Net Position 528,529 (429,371) 23,939 123,097 (972,865) BEGINNING NET POSITION 24,577,625 5,606,102 (23,959) 30,159,768 2,303,123 ENDING NET POSITION (DEFICIT) $25,106,154 $5,176,731 ($20) $30,282,865 $1,330,258 See accompanying notes to financial statements
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PROPRIETARY FUNDS

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2022
Business-type Activities-Enterprise Funds
Governmental
ActivitiesInternal Service
Sewer Solid Waste Storm Drain Totals Funds

CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers $8,445,000 $888,525 $9,333,525 $1,466,954 Cash payments to suppliers for goods and services (5,159,292) (703,252) (5,862,544) Cash payment employees for services (1,555,647) (399,728) ($23,137) (1,978,512) Cash payments to claimants 706,123
Insurance premiums, settlements and rebates (2,861,646) Cash Flows from (used for) Operating Activities 1,730,061 (214,455) (23,137) 1,492,469 (688,569)

CASH FLOWS FROM NONCAPITAL

FINANCING ACTIVITIES
Transfers from (to) other funds (554,612) (138,002) 23,939 (668,675) 784,000 Cash Flows (used for) Noncapital
Financing Activities (554,612) (138,002) 23,939 (668,675) 784,000

CASH FLOWS FROM CAPITAL AND RELATED

FINANCING ACTIVITIES
Acquisition of capital assets (988,017) (988,017)
Grants and donations 44,027 44,027
Cash Flows (used for) Capital and
Related Financing Activities (988,017) 44,027 (943,990)

CASH FLOWS FROM INVESTING ACTIVITIES
Interest received (275,295) (159,399) (434,694)
Cash Flows from Investing Activities (275,295) (159,399) (434,694) Net Cash Flows (87,863) (467,829) 802 (554,890) 95,431
Cash and investments at beginning of period 11,459,886 5,548,265 17,008,151 6,630,277 Cash and investments at end of period $11,372,023 $5,080,436 $802 $16,453,261 $6,725,708 Reconciliation of Operating Income (Loss) to
Cash Flows from Operating Activities:

Operating income (loss) $1,382,721 ($163,669) $1,219,052 ($1,756,865) Adjustments to reconcile operating income to
cash flows from operating activities:

Depreciation 281,528 281,528
Change in assets and liabilities:

Receivables, net 162,674 (40,263) 122,411 (18,945)
Accounts payable and other accrued expenses (172,844) (2,949) ($21) (175,814) 2,686 Due to other funds (7,969) (7,969) (94,747)
Net pension liabilities and deferred
inflows and outflows 174,404 174,404
Net OPEB liabilities (83,309) (7,574) (15,147) (106,030) Compensated absences (15,113) (15,113)
Claims and judgments 1,179,302
Cash Flows from (used for) Operating Activities $1,730,061 ($214,455) ($23,137) $1,492,469 ($688,569) See accompanying notes to financial statements
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FIDUCIARY FUNDS
The City of Los Altos only reports one type of Fiduciary Funds: Custodial Funds Custodial Funds are custodial in nature and does not involve measurement of the results of operations. It is used to account for assets held in a custodial capacity for others and therefore cannot be used to support the City's programs.
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FIDUCIARY FUNDS

STATEMENT OF NET POSITION
JUNE 30, 2022
Custodial Funds
Total
ASSETS
Cash and investments (Note 2) $38,195
Restricted cash and investments (Note 2) 45,828
Total Assets 84,023

NET POSITION
Restricted for:

Other governments 84,023
Total Net Position $84,023
See accompanying notes to financial statements
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FIDUCIARY FUNDS

STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2022
Custodial Funds
Total

ADDITIONS
Fee collections $56,346
Total Additions 56,346

DEDUCTIONS
Distributions 863,346
Total Deductions 863,346
Net increase(decrease) in net position (807,000)
Net Position-Beginning 891,023
Net Position-Ending $84,023
See accompanying notes to financial statements
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NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Background
The basic financial statements of the City of Los Altos, California (the City), have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to governmental agencies. The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The more significant of the City’s accounting policies are described below:

Reporting Entity
The City incorporated in 1952. The City operates under an elected Council and appointed City Manager form of government and provides the following services: public safety, recreation, community development, public works, capital improvements, and general supporting administrative services. The City has no component units.

B. Basis of Presentation
The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for within a separate set of selfbalancing accounts which includes its assets, liabilities, fund equity, revenues and expenditures or expenses, as appropriate. Fund accounting segregates funds according to their intended purpose and is used to aid management in demonstrating compliance with finance-related legal and contractual provisions. The minimum number of funds is maintained consistent with such provisions and managerial requirements.

Government-wide Statements: The City’s Government-wide Financial Statements include a Statement of Net Position and a Statement of Activities and Changes in Net Position. These statements present summaries of governmental activities and business-type activities for the City, the primary government, accompanied by a total column. Fiduciary activities of the City are not included in these statements.

These basic financial statements are presented on an “economic resources” measurement focus and the accrual basis of accounting. Accordingly, all of the City’s assets and liabilities, including capital assets, as well as infrastructure assets and long-term liabilities, are included in the accompanying Statement of Net Position. The Statement of Activities and Changes in Net Position presents changes in the net position of the City. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability for goods or services is incurred.

Certain types of transactions are reported as program revenues for the city in three categories:
• Charges for services
• Operating grants and contributions
• Capital grants and contributions
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NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Certain eliminations have been made as prescribed by GASB Statement No. 34 in regard to interfund activities, payables, and receivables. All internal balances in the Statement of Net Position have been eliminated except those representing balances between the governmental activities and the business-type activities, which are presented as internal balances and eliminated in the total primary government column. In the Statement of Activities and Changes in Net Position internal service fund transactions have been eliminated; however, those transactions between governmental and business-type activities have not been eliminated. The following inter-fund activities have been eliminated:
• Due to, due from other funds
• Transfers in, transfers out
• Internal service fund transactions
Fund Financial Statements: Governmental fund financial statements include a Balance Sheet and a Statement of Revenues, Expenditures and Changes in Fund Balances for all major governmental funds and non-major funds in the aggregate. An accompanying schedule is included to reconcile and explain the differences in fund balances as presented in these statements to the net position presented in the Government-Wide financial statements.

Governmental funds are accounted for on a spending or “current financial resources” measurement focus and the modified accrual basis of accounting. Accordingly, only current assets and current liabilities are included on the balance sheets. The Statement of Revenues, Expenditures and Changes in Fund Balances present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Under the modified accrual basis of accounting, revenues are recognized in the accounting period in which they become both measurable and available to finance expenditures of the current period.

Revenues are recorded when received in cash, except that revenues subject to accrual (generally 60 days after year-end) are recognized when due. The City’s primary revenue sources, which have been treated as susceptible to accrual by the City, are: property tax, sales tax, hotel tax, special assessments, intergovernmental revenues, other taxes, interest revenue, rental revenue and certain charges for services. Expenditures are recorded in the accounting period in which the related fund liability is incurred and are accrued accordingly.

Deferred inflow of resources arise when potential revenues do not meet both the “measurable” and “available” criteria for recognition in the current period. Unearned revenues arise when the government receives resources before it has a legal claim to them, as when grant monies are received prior to incurring qualifying expenditures. In subsequent periods when both revenue recognition criteria are met or when the government has a legal claim to the resources, the revenue is recognized.

The reconciliation of the Fund Financial Statements to the Government-wide Financial Statements is provided to explain the differences created by the integrated approach of GASB Statement No.

34. 48
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NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Proprietary Fund Financial Statements: Proprietary Fund financial statements include a Statement of Net Position, a Statement of Revenues, Expenses and Change in Net Position, and a Statement of Cash Flows for all proprietary funds.

A column representing the City’s internal service funds, those funds that support agency wide shared service costs, is also presented in these statements. These internal service balances and activities are combined with the governmental activities in the Government-wide Financial Statements.

Proprietary Funds are accounted for using the “economic resources” measurement focus and the accrual basis of accounting. Accordingly, all assets and liabilities (whether current or noncurrent) are included on the Statement of Net Position. The Statement of Revenues, Expenses and Change in Fund Net Position presents increases (revenues) and decreases (expenses) in total net position.

Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which liability for goods or services is incurred.

Proprietary Funds distinguish operating revenues and expenses and non-operating items. Operating revenues and expenses generally result from providing services in connection with the fund’s principal ongoing operations. The principal operating revenues of the City’s enterprise and internal service funds are charges for customer services, including sewer charges, solid waste fees, and support charges. Operating expenses for enterprise funds and internal service funds include the cost of services, administrative expenses, and depreciation on capital assets. All other revenues and expenses not meeting this definition are reported as non-operating revenues and expenses.

Fiduciary Fund Financial Statements: The City’s Fiduciary Funds are comprised of custodial funds used to account for the operating activities and for the special assessment collections pertaining to the North County Library Authority (NCLA) and Gutter Districts, and Blue Oak Lane Sewer Improvements. Custodial Funds are accounted for on the full accrual basis of accounting.

Internal Service Funds: Internal Service Funds account for services provided to other departments pertaining to the employee self-insurance dental program, unemployment insurance, workers’ compensation insurance and liability insurance, all of which are funded on a cost reimbursement basis as budget projections and valuations develop.
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NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) C. Major Funds
Major funds are defined as funds that have either assets, liabilities, revenues or expenditures/expenses equal to ten percent of their fund-type total and five percent of the grand total. The General Fund is always a major fund. The City may also select other funds it believes should be presented as major funds.

The City reported the following major governmental funds in the accompanying financial statements:

General Fund – Accounts for all financial resources necessary to carry out basic governmental activities of the City that are not accounted for in another funds. The General Fund supports essential City services such as police, fire, street and park maintenance, public works, and community development and recreation activities. The General Fund also includes the Real Property Proceeds Funds, which accounts for the proceeds from sale of real property and the Community Facilities Renewal Fund, which accounts for the revenues and expenditures related to the community facilities renewal efforts.

In-Lieu Park Land Fund – Accounts for revenues received in lieu of parkland dedications. The revenues are dedicated for purchasing or improving park or recreational facilities.

Capital Project Fund – Accounts for the acquisition and construction of major general government capital projects and plans that are financed by resources other than proprietary funds.

The City reported all of its enterprise funds as major funds in the accompanying financial statements:

Sewer Fund – Accounts for the operation (including waste water treatment) of the City’s sewer treatment activities, a self-supporting activity which provides services on a user charge basis.

Solid Waste Fund – Accounts for the administration and support of contracted solid waste services, a self-supporting user charge for services activity.

Storm Drain Fund – Accounts for operation of the City’s urban runoff and storm drain activities.

D. Recognition of Interest Payable
In the Governmental Fund Financial Statements, interest expenditures on long-term debt are recognized when payment is made. In the Government-wide Financial Statements and Proprietary Fund Financial Statements interest expense is recognized as the liability is incurred.

E. Use of Restricted and Unrestricted Net Position
When an expense is incurred for purposes for which both restricted and unrestricted net position are available, the City’s policy is to apply restricted net position first. 50 289
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NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) F. Cash, Cash Equivalents and Investments
The City pools its available cash for investment purposes. The City considers pooled cash and investment amounts, with original maturities of three months or less, to be cash equivalents.

In accordance with GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools, highly liquid market investments with maturities of one year or less at time of purchase are stated at amortized cost. All other investments are stated at fair value. Market value is used as fair value for those securities for which market quotations are readily available.

The City participates in an investment pool managed by the State of California known as the Local Agency Investment Fund (LAIF) which has invested a portion of the pool funds in Structured Notes and Asset- backed Securities. LAIF’s investments are subject to credit risk with the full faith and credit of the State of California collateralizing these investments. In addition, these Structured Notes and Asset-backed Securities are subject to market risk as to change in interest rates.

The City places liquid assets in a pooled investment account with the goal of enhancing the diversity of its investment holdings. This portfolio complies with state code investment requirements and is subject to a more restrictive City adopted investment policy. Such funds are held independently in City established investment custodial accounts.

For purposes of reporting cash flows, the City considers each fund’s share in the cash and investments pool to be cash and cash equivalents including cash with fiscal agents.

G. Fair Value Hierarchy
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The fair value hierarchy categorizes the inputs to valuation techniques used to measure fair value into three levels based on the extent to which inputs used in measuring fair value are observable in the market.

Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2 inputs are inputs, other than quoted prices included within level 1, that are observable for an asset or liability, either directly or indirectly.

Level 3 inputs are unobservable inputs for an asset or liability.

If the fair value of an asset or liability is measured using inputs from more than one level of the fair value hierarchy, the measurement is considered to be based on the lowest priority level input that is significant to the entire measurement.
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NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) H. Inventories
Inventory, mainly consisting of vehicle fuel and prepaid supplies, is stated at cost on an average cost basis and is controlled by a perpetual inventory system which is adjusted to reflect periodic physical counts. Inventories are recorded as expenditures in the General Fund and charged to departments as consumed.

I. Restricted Cash
Fiscal agents acting on behalf of the City hold investment funds arising from the proceeds of longterm debt issuances. The funds may be used for specific capital outlays or for the payment of certain bonds, certificate of participation and have been invested only as permitted by specific State statutes or applicable City ordinance, resolution or bond indenture.

J. Compensated Absences
Government-wide Financial Statements: For governmental and business-type activities, compensated absences are recorded as expenses and liabilities as the time is earned by employees.

Fund Financial Statements: For Governmental Funds, compensated absences are recorded as expenditures in the years paid. The General Fund is typically used to pay out compensated absences that arise in the course of any one year. Unpaid and accumulated liabilities for some compensated absences accrue to future resources. In Proprietary Funds, compensated absences are expensed to the various funds in the period they are earned, and such fund’s share of the unpaid liability is recorded as a long-term liability of the fund.

K. Property Taxes
Santa Clara County (County) assesses all properties in the City, and it bills, collects and distributes property taxes to the City. Both secured and unsecured property taxes are levied on January 1. The County assesses properties and it bills, collects and distributes property taxes to the City. The County remits the entire amount levied and handles all delinquencies, retaining interest and penalties. Secured and unsecured property taxes are levied on July 1 for the fiscal year.

Secured property tax is due in two installments, on November 1 and February 1, and it becomes delinquent after December 10 and April 10, respectively. The City and the County adopted the “alternative method of property tax distribution” known as the Teeter Plan that authorizes the County to allocate 100% of the secured property tax based on levy instead of collection and to retain all delinquent penalties and interest. Unsecured property tax is due on July 1 and becomes delinquent after August 31. Distribution of the unsecured property taxes is based on collections. Collection of delinquent accounts is the responsibility of the County, which retains all penalties. The County also distributes both penalties and interest collected for delinquent unsecured property taxes. 52 291
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NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) L. Capital Assets
Capital assets are valued at historical cost or estimated historical cost if actual historical cost was not available. Donated capital assets are valued at their estimated acquisition value on the date contributed. City policy has set the capitalization threshold for reporting capital assets at $5,000 for equipment, $25,000 for building and facility improvements and $100,000 for infrastructure.

Depreciation is recorded on a straight-line basis over estimated useful lives of the assets as follows:

Buildings 50 years
Improvements 30-50 years
Machinery and Equipment 3-10 years
Infrastructure 30-100 years
In accordance with GASB Statement No. 34, the City has included all infrastructures in its Statement of Net Position.

The City defines infrastructure as basic physical assets that allow the City to function. The assets include the street system. Each major infrastructure system can be divided into subsystems. For example, the street system can be subdivided into pavement, streetlights and traffic control devices (signs, signals and pavement markings). These subsystems were not delineated in the Governmentwide Financial Statements. The appropriate operating department maintains information regarding the subsystems.

For all infrastructure systems, the City has elected to use the Basic Approach, as defined by GASB Statement No. 34, for infrastructure reporting. The valuation of the City’s infrastructure assets are determined based on the original cost using one of the following methods:

1. Use of historical records where available

2. Standard unit costs appropriate for the construction/acquisition date of the asset

3. Present replacement cost indexed by a reciprocal factor of the price increase from the construction/acquisition date to the current date
Accumulated depreciation, defined as the total depreciation from the date of construction/acquisition to the current date, was computed on a straight-line method. The book value was then computed by deducting the accumulated depreciation from the original cost. 53 292
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NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) M. Long-Term Debt
Government-wide Financial Statements: Long-term debt and other financial obligations are reported as liabilities in the appropriate activities.

Bond premiums and discounts are deferred and amortized over the life of the bonds using the straight-line method. Bonds payable are reported net of the applicable premium or discount.

Fund Financial Statements: The Governmental Fund Financial Statements do not present longterm debt, which are shown in the Reconciliation of the Governmental Funds Balance Sheet to the Government-wide Statement of Net Position.

Governmental Funds recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources.

Premiums received on debt issuance are reported as other financing sources while discounts on debt issuance are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.

Proprietary Fund Financial Statements use the same principles as those used in the Governmentwide Financial Statements.

N. Unearned Revenue
Government-wide Financial Statements: In the Government-wide Financial Statements, unearned revenue is recognized for transactions for which revenue has not yet been earned.

O. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position or balance sheet reports a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net assets that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. In addition to liabilities, the statement of financial position or balance sheet reports a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net assets that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time.

P. Use of Estimates
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities. In addition, estimates affect the reported amount of expenses. Actual results could differ from these estimates and assumptions.

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NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Q. OPEB Liabilities, OPEB Expenses and Deferred Outflows/Inflows of Resources Related to OPEB
For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the City’s OPEB Plan and additions to/deductions from the OPEB Plan’s fiduciary net position have been determined on the same basis as they are reported by California Employers’ Retiree Benefit Trust (CERBT). For this purpose, benefit payments are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value.

R. Implementation of Governmental Accounting Standards Board (GASB) Pronouncements Management adopted the provisions of the following Governmental Accounting Standards Board (GASB) Statement, which became effective during the year ended June 30, 2022.

Effect of New Governmental Accounting Standards Board (GASB) Pronouncements GASB Statement No. 87 – In June 2017, the GASB issued Statement No. 87, Leases. The objective of this Statement is to better meet the information needs of financial statement users by improving accounting and financial reporting for leases by governments. This Statement increases the usefulness of governments’ financial statements by requiring recognition of certain lease assets and liabilities for leases that previously were classified as operating leases and recognized as inflows of resources or outflows of resources based on payment provisions of the contract. It establishes a single model for lease accounting based on the foundational principle that leases are financings of the right to use an underlying asset. Under this Statement, a lessee is required to recognize a lease liability and an intangible right-to-use lease asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resources, thereby enhancing the relevance and consistency of information about governments’ leasing activities. The requirements of this Statement are effective for reporting periods beginning after December 15, 2020. The City implemented GASB 87 in the fiscal year 2022.

Future Governmental Accounting Standards (GASB) Pronouncements GASB 94 – Public-Private and Public-Public Partnerships and Availability Payment Arrangements
The primary objective of this Statement is to improve financial reporting by addressing issues related to public-private and public-public partnership arrangements (PPPs). As used in this Statement, a PPP is an arrangement in which a government (the transferor) contracts with an operator (a governmental or nongovernmental entity) to provide public services by conveying control of the right to operate or use a nonfinancial asset, such as infrastructure or other capital asset (the underlying PPP asset), for a period of time in an exchange or exchange-like transaction.

Some PPPs meet the definition of a service concession arrangement (SCA), which the Board defines in this Statement as a PPP in which (1) the operator collects and is compensated by fees from third parties; (2) the transferor determines or has the ability to modify or approve which services the operator is required to provide, to whom the operator is required to provide the services, and the prices or rates that can be charged for the services; and (3) the transferor is entitled to significant residual interest in the service utility of the underlying PPP asset at the end of the arrangement. The City has not determined its effect on the financial statements. 55 294
Agenda Item # 11.

CITY OF LOS ALTOS

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) GASB 96 – Subscription-Based Information Technology Arrangements This Statement provides guidance on the accounting and financial reporting for subscription-based information technology arrangements (SBITAs) for government end users (governments). This Statement (1) defines a SBITA; (2) establishes that a SBITA results in a right-to-use subscription asset—an intangible asset—and a corresponding subscription liability; (3) provides the capitalization criteria for outlays other than subscription payments, including implementation costs of a SBITA; and (4) requires note disclosures regarding a SBITA. To the extent relevant, the standards for SBITAs are based on the standards established in Statement No. 87, Leases, as amended. The City has not determined its effect on the financial statements.

NOTE 2 - CASH, CASH EQUIVALENTS AND INVESTMENTS
A. Cash Deposits
The City’s cash and investments at June 30, 2022 are presented as follows:

Cash and investments $65,696,452
Restricted cash and investments 172,209
Custodial funds:

Cash and investments 38,195
Restricted cash and investments 45,828
Total cash and investments $65,952,684
Cash and investments consist of the following as of June 30, 2022:

Cash on hand $2,170
Deposits with financial institutions* 8,780,358
Investments:

Liquid investments $8,980,271
Managed investments 48,189,885 57,170,156
Total cash and investments $65,952,684
*Workers' compensation imprest balances held by Tristar in trust for City.

56 295
Agenda Item # 11.

CITY OF LOS ALTOS

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 2 - CASH, CASH EQUIVALENTS AND INVESTMENTS (Continued) B. Authorized Investments
Under the provisions of the City’s investment policy and in accordance with Section 53601 of the California Government Code, the City is authorized to invest or deposit in the following, with the limitations as they relate to interest rate risk, credit risk, and concentration of credit risk:

Maximum Maximum
Maximum Percentage Investment Minimum Legal
Authorized Investment Type Maturity of Portfolio In One Issuer Rating Local Agency Investment Fund N/A 100% $75 million N/A
Money Market Mutual Funds N/A 20% 10% N/A
Certificates of Deposit 3 years 50% 10% A
Bankers' Acceptances 180 days 20% 10% N/A
Commercial Paper 270 days 25% 5% A-1
Repurchase Agreements 180 days 20% 10% N/A
U.S. Treasury Bills, Notes and Bonds 5 years 100% N/A N/A Supra-National Agency Notes and Bonds 5 years 20% N/A AA U.S. Government-Sponsored Enterprise 5 years 100% 20% N/A Agencies
Medium-Term Corporate Notes 5 years 30% 3% A
Asset-backed Securities 5 years 20% 3% AAA
C. Interest Risk
Interest rate risk is the market rate changes that adversely affect the fair value of an investment.

Generally, the sensitivity of an investment fair value to changes in market rates is greater when the maturity of the investment is longer.

Investments held in city treasury grouped by maturity date at June 30, 2022, are shown below:

One Year 13 months to 25 months 37 months
Investment Type or Less 24 months to 36 months to 60 months Total Money Market Mutual Fund $217,971 $217,971
Government Sponsored Enterprise Agencies:

Federal National Mortgage Association Notes (FNMA) 1,166,229 $1,737,083 2,903,312 Federal Home Loan Mortgage Corporation (FHLMC) 298,476 3,675,736 3,974,212 FHMS 7,415 $8,778 16,193
U.S. Treasury Notes 13,614,769 8,032,184 21,646,953
Supra-National Agency Notes and Bonds 430,760 409,261 505,777 1,345,798 Certificate of Deposit 990,129 990,129
Medium-Term Corporate Notes 275,225 2,163,079 7,012,744 $1,278,693 10,729,741 Asset-Backed Securities 641,230 1,351,601 4,372,745 6,365,576 Local Agency Investment Funds (LAIF) 8,980,271 8,980,271 Total investments $12,359,061 $22,248,573 $16,911,084 $5,651,438 57,170,156 Demand Deposits and Cash on Hand 8,782,528
Total cash and investments $65,952,684
57 296
Agenda Item # 11.

CITY OF LOS ALTOS

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 2 - CASH, CASH EQUIVALENTS AND INVESTMENTS (Continued) D. Fair Value Hierarchy
The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure fair value of the assets. Level 1 inputs are quoted prices in an active market for identical assets; Level 2 inputs are significant other observable inputs; and Level 3 inputs are significant unobservable inputs.

The following is a summary of the fair value hierarchy of the fair value of investments of the City as of June 30, 2022:

Investments by Fair Value Level: Level 1 Level 2 Total
Government Sponsored Enterprise Agencies:

Federal National Mortgage Association Notes (FNMA) $2,903,312 $2,903,312 Federal Home Loan Mortgage Corporation (FHLMC) 3,974,212 3,974,212 FHMS 16,193 16,193
U.S. Treasury Notes $21,646,953 21,646,953
Supra-National Agency Notes and Bonds 1,345,798 1,345,798 Medium-Term Corporate Notes 10,729,741 10,729,741
Asset-backed Securities 6,365,576 6,365,576
Total Investments $21,646,953 $25,334,832 46,981,785
Investments Measured at Amortized Cost:

Certificates of Deposit 990,129
Money Market Mutual Fund 217,971
California Local Agency Investment Fund (LAIF) 8,980,271 Cash in banks and on hand 8,782,528
Total Cash and investments $65,952,684
Investments above classified in Level 1 of the fair value hierarchy are valued using a quoted price in an active market for an identical asset. Investments above classified in Level 2 of the fair value hierarchy are valued using a quoted price in a non-active market for an identical asset. These prices are obtained from various pricing sources by the custodian bank. Certificates of Deposit, Money Market Mutual Fund and LAIF are valued at amortized cost and therefore, exempt from being classified under GASB 72.
58 297
Agenda Item # 11.

CITY OF LOS ALTOS

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 2 - CASH, CASH EQUIVALENTS AND INVESTMENTS (Continued) E. Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is usually measured by the assignment of a rating by a nationally recognized statistical rating organization.

At June 30, 2022, the City’s deposit and investments were rated as follows:

Investment TyRe Moody's S&R Market Value
Securities of Government SRonsored EnterRrise Agencies:

Federal National Mortgage Association Notes (FNMA) Aaa AA+ $2,903,312 Federal Home Loan Mortgage CorRorate Notes (FHLMC) Aaa AA+ 3,974,212 FHMS Aaa AA+ 16,193
U.S. Treasury Notes Aaa AA+ 21,646,953
Medium-Term Corporate Notes:

PNC Bank NA Corp A2 A 275,225
IBM Corp Notes A2 A- 250,582
Goldman Sach Corp A2 BBB+ 150,514
Charles Schwab Corp (Callable) A2 A 167,864
Comcast Corp (Callable) A3 A- 200,572
Amazon.com Inc. A1 AA 213,899
Citigroup Inc. A3 BBB+ 220,396
United Health Group Inc. A3 A+ 181,022
Caterpillar Financial Service A2 A 260,790
Astrazeneca Finance LLC (Callable) A3 A- 274,969
Hormel Foods (Callable) A1 A 166,095
John Deere Capital Corp A2 A 76,376
Target Corp. A2 A 200,588
Bank of America (Callable) A2 A- 198,743
Bristol Myers Squibb Co. (Callable) A2 A+ 82,479
American Express Co. (Callable) A2 BBB+ 219,157
American Honda Finance A3 A- 173,967
PACCAR Financial Corp A1 A+ 136,418
Unilever Capital Corp. (Callable) A1 A+ 94,293
Goldman Sachs Group Inc. A2 BBB+ 143,675
Toyota Motor Credit Corp A1 A+ 188,037
Bank of America Corp (Callable) A2 A- 262,274
Credit Quality Ratings
(Continued)
59 298
Agenda Item # 11.

CITY OF LOS ALTOS

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 2 - CASH, CASH EQUIVALENTS AND INVESTMENTS (Continued) John Deere Capital Corp A2 A 208,322
Cooperative Rabo Bank UA Aa2 A+ 235,255
American Honda Finance A3 A- 237,462
Linde INC/CT (Callable) A2 A 172,194
National Rural Utility Coop A2 A- 167,488
Merck & Co. Inc. A1 A+ 128,293
Toyota Motor Credit A1 A+ 190,654
JP Morgan Chase & Co. (Callable) A2 A- 160,220
American Express Co. (Callable) A2 BBB+ 144,393
Exxon Mobil Corp Aa2 AA- 127,158
John Deere Capital Corp A2 A 72,484
Abbott Laboratories Corp (Callable) A1 AA- 162,805
Unilever Capital Corp (Callable) A1 A+ 124,895
Burlington North Santa Fe (Callable) A3 AA- 123,257
Paccar Financial Corp A1 A+ 246,998
Amazon.com Inc A1 AA 346,960
Home Depot Inc (Callable) A2 A 39,148
Brown-Forman Corp Notes (Callable) A1 A- 114,485
Bank of NY Mellon (Callable) A1 A 492,157
Citigroup Inc. A3 BBB+ 163,900
Cintas Corporation No. 2 Corp Note (Callable) A3 A- 175,252 Caterpillar Finl Service A2 A 124,509
General Dynamics Corp (Callable) A3 A- 164,532
Hershey Co. (Callable) A1 A 120,494
JP Morgan Chase & Co. (Callable) A2 A- 322,714
Honeywell Intl Corp (Callable) A2 A 165,024
Trust Financial Corp (Callable) A3 A- 230,009
National Australia BK/NY Aa3 AA- 252,620
National Rural Utility Coop A2 A- 99,431
JP Morgan Chase & Co. (Callable) A2 A- 225,367
Morgan Stanley A1 A- 84,979
Bank of America A2 A- 223,762
Bristol Myers Squibb Co. A2 A+ 113,834
State Street Corp (Callable) A1 A 105,660
Morgan Stanley (Callable) A1 A- 278,352
State Street Corp (Callable) A1 A 246,739
Certificates of Deposit
DNB Bank ASA/NY LT P-1 A-1+ 573,403
Credit Suisse New York Cert P-1 A-1 416,726
Asset-backed Securities Aaa AAA 2,258,093
Asset-backed Securities Aaa NR 994,006
Asset-backed Securities NR AAA 3,113,477
Supra-National Agency Notes and Bonds Aaa AAA 1,345,798 Money Market Aaa AAAm 217,971
Subtotal 48,189,885
Not Rated:

Cash on hand Not Rated Not Rated 2,170
US Bank General Checking Not Rated Not Rated 8,473,534
Money Market (Sweep Account) Not Rated Not Rated 306,824 Local Agency Investment Funds (LAIF) Not Rated Not Rated 8,980,271 Total Investments $65,952,684
60 299
Agenda Item # 11.

CITY OF LOS ALTOS

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 2 - CASH, CASH EQUIVALENTS AND INVESTMENTS (Continued) F. Custodial Credit Risk – Deposits
This is the risk that in the event of a bank failure, the City's deposits may not be returned to it. The City does not have a policy for custodial credit risk for deposits. However, the California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The fair value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure public deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits and letters of credit issued by the Federal Home Loan Bank of San Francisco having a value of 105% of the secured deposits.

As of June 30, 2022, the City's bank balance was $10,599,883 and the corresponding carrying book balance was $9,115,138. Of the bank balance, $250,000 was covered by federal depository insurance and $8,865,138 was collateralized.

Investments: The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g. broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the City’s investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for investments.

G. Investment in State Investment Pool
The City is a voluntary participant in LAIF that is regulated by the California Government Code under the oversight of the Treasurer of the State of California. The fair value of the City’s investment in this pool as reported in the accompanying financial statements is based upon the Entity’s pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio).

As of June 30, 2022, the City held $8,980,271 in LAIF. The LAIF fair value factor of 0.987125414 was used to calculate the fair value of the investments in LAIF and average maturity of 311 days. 61 300
Agenda Item # 11.

CITY OF LOS ALTOS

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 3 - INTERFUND TRANSACTIONS
A. Transfers
Transfers between funds during the fiscal year ended June 30, 2022 were as follows:

Fund Making Transfers Fund Receiving Transfers Amount
General Fund Non Major Governmental Fund $903,013 E
Capital Projects Fund 3,932,956 A
Storm Drain Fund F 23,939
Internal Services Funds 384,000 G
In-Liew Park Land Special Revenue Fund Non Major Governmental Funds 789,490 D Capital Project Fund 128,025 A
Non-Major Governmental Funds General Fund C & H 230,000 Capital Projects Fund 3,328,013 A
Capital Projects Fund Non Major Governmental Funds 531,566 B Sewer Fund General Fund 254,612 G
Internal Services Funds 300,000 G
Solid Waste Fund General Fund G 38,002
Internal Services Funds 100,000 G
Internal Services Funds Internal Services Funds 450,000 F $11,393,616
Interfund transfers were principally used for the following purposes, (A) To Fund Capital Projects
(B) To Cover Negative Cash at June 30 2022
(C) Public Safety Related Funds paid to the General Fund (D) To Maintain Minimum Fund Balance in Debt Service
(E) Equipment Replacement
(F) To Maintain Minimum Fund Balance
(G) Additional Payment to PERS
(H) Reimburse Expenses
B. Due to/from other funds
Current interfund balances arise in the normal course of business, to fund projects until the borrowing fund receives revenues to repay the lending fund and to assist funds with negative cash balance at the fiscal year end. The following is a summary of interfund balances as of June 30, 2022:

Due From Other Funds Due To Other Funds Amount
General Fund Non-Major Governmental Funds $392,175
62 301
Agenda Item # 11.

CITY OF LOS ALTOS

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 4 - NOTE RECEIVABLE
Upon the employment separation of the previous City Manager, the outstanding note receivable was paid in full as of June 30,2022. The City entered into a loan agreement with the previous City Manager on November 1, 2016, to provide the City Manager a long-term loan of up to $2,000,000 to finance the acquisition of his personal residence located within the City. The loan is secured by a deed of trust on the property. The loan is due upon sale of the property, within six to twelve months after the termination of the City Manager’s employment with the City depending on the cause of termination, or 30 years from the date of the loan agreement execution, whichever occurs first. The loan bears an interest rate at the 5 Year Treasury Rate as of September 1, 2016 amortized over a thirty-year period and recalculated to the 5 year Treasury Rate every five years of the original date of the loan.

NOTE 5 - CAPITAL ASSETS
A. Government-wide Financial Statements
At June 30, 2022, the City’s capital assets consisted of the following:

Governmental Business-Type
Activities Activities Total
Nondepreciable assets:

Construction in progress $30,747,770 $2,023,475 $32,771,245 Land 11,642,285 11,642,285
Total nondepreciable assets 42,390,055 2,023,475 44,413,530 Depreciable assets:

Buildings 21,637,868 17,959,980 39,597,848
Improvements 6,537,672 6,537,672
Machinery and equipment 7,233,195 1,066,804 8,299,999
Infrastructure 68,141,524 8,417,261 76,558,785
Total depreciable assets 103,550,259 27,444,045 130,994,304 Less accumulated depreciation (39,231,805) (14,111,428) (53,343,233) Total depreciable assets, net 64,318,454 13,332,617 77,651,071 Total capital assets $106,708,509 $15,356,092 $122,064,601 63 302
Agenda Item # 11.

CITY OF LOS ALTOS

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 5 - CAPITAL ASSETS (Continued)
The following is a summary of capital assets for governmental activities for the year ended June 30, 2022:

Balance Balance
June 30, 2021 Additions Transfers Adjustments June 30, 2022 Governmental Activities:

Capital assets, not depreciated:

Land $14,500,134 ($2,857,849) (A) $11,642,285
Construction in progress 45,660,831 $6,665,769 ($21,578,830) 30,747,770 Total capital assets, not depreciated 60,160,965 6,665,769 (21,578,830) (2,857,849) 42,390,055 Buildings 21,637,868 21,637,868
Improvements 6,537,672 6,537,672
Machinery and equipment 7,094,884 186,557 (48,246) 7,233,195 Infrastructure 46,562,694 21,578,830 68,141,524
Total cost of depreciable assets 81,833,118 186,557 21,578,830 (48,246) 103,550,259 Less accumulated depreciation:

Buildings (11,428,307) (398,477) (11,826,784)
Improvements (2,769,868) (177,675) (2,947,543)
Machinery and equipment (5,275,823) (305,258) (5,581,081) Infrastructure (16,680,602) (2,195,795) (18,876,397)
Total accumulated depreciation (36,154,600) (3,077,205) (39,231,805) Net depreciable assets 45,678,518 (2,890,648) 21,578,830 (48,246) 64,318,454 Governmental Activity Capital Assets, Net $105,839,483 $3,775,121 ($2,906,095) $106,708,509 (A) Reclassification to land held for development per City Council decision The governmental activities depreciation expenses for capital assets for the year ended June 30, 2022 are as follows:

Functions/Programs Total
Public safety $151,431
Public works 2,262,153
Recreation 470,262
Community development 815
Admin / community services 192,544
Total depreciation expense $3,077,205
64 303
Agenda Item # 11.

CITY OF LOS ALTOS

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 5 - CAPITAL ASSETS (Continued)
The following is a summary of capital assets for business-type activities:

Balance Balance
June 30, 2021 Additions Transfers June 30, 2022
Business-Type Activities:

Capital assets, not depreciated:

Construction in progress $1,361,354 $988,017 ($325,896) $2,023,475 Total capital assets, not depreciated: 1,361,354 988,017 (325,896) 2,023,475 Capital assets, being depreciated:

Buildings 17,959,980 17,959,980
Machinery and equipment 1,066,804 1,066,804
Infrastructure 8,091,365 325,896 8,417,261
Total cost of depreciable assets 27,118,149 325,896 27,444,045 Less accumulated depreciation:

Buildings (10,674,955) (217,810) (10,892,765)
Machinery and equipment (876,090) (55,571) (931,661)
Infrastructure (2,278,855) (8,147) (2,287,002)
Total accumulated depreciation (13,829,900) (281,528) (14,111,428) Net depreciable assets 13,288,249 (281,528) 325,896 13,332,617 Business-type Activity Capital Assets, Net $14,649,603 $706,489 $ - $15,356,092 Depreciation expense for business-type activities related to the Sewer Fund amounted to $281,528 for the year ended June 30, 2022.

B. Fund Financial Statements
The Governmental Fund Financial Statements do not present capital assets, which are shown in the Reconciliation of the Governmental Funds Balance Sheet to the Government-wide Statement of Net Position.

The capital assets of the Enterprise Funds in the Proprietary Fund Financial Statements are the same as those shown in the business-type activities of the Government-wide Financial Statements. 65 304
Agenda Item # 11.

CITY OF LOS ALTOS

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 6 - LONG-TERM OBLIGATIONS
A. Governmental Activities Long-Term Debt
Summary of changes in governmental activities long-term debt for the year ended June 30, 2022 is as follows:

Balance at Balance at Due Within Due in More
June 30, 2021 Retirements June 30, 2022 One Year Than One Year 2004 Certificate of Participation $880,000 ($130,000) $750,000 $140,000 $610,000 Direct Borrowing-Community Center Lease 9,496,863 (404,612) 9,092,251 413,877 8,678,374 Total $10,376,863 ($534,612) $9,842,251 $553,877 $9,288,374 2004 Refunding Certificate of Participation: On November 1, 1996, the City issued $2,630,000 principal amount of Certificates of Participation (ABAG 38 COPs). The purpose of the ABAG 38 COPs was to finance the partial purchase of the 5.5 acre Saint William School site for public purposes and uses. During 2004 the City issued $2,500,000 of 2004 Refunding Certificates of Participation to advance refund $2,390,000 of outstanding principal on the ABAG 38 Certificates of Participation, set up reserve funds, and to pay related issuance costs. The entire ABAG 38 Certificates of Participation had been paid off by June 30, 2004. This advance refunding was undertaken to reduce total future debt service payments.

The Certificates of Participation are limited obligations of the City, payable from appropriations budged for in the City’s annual adopted budget. The Certificate covenants contain events of default that may result in the termination of the lease, collection of rent due and other monetary charges and terminate the City's right to possession of the leased property as applied by the Trustee and specified in the terms of the agreement if any of the following conditions occur: default on debt service payments; the failure of the City to observe or perform the conditions, covenants, or agreement terms of the debt; bankruptcy filing by the City; or if any court or competent jurisdiction shall assume custody or control of the City. There were no such events occurred during the fiscal year ending June 30, 2022.

Direct Borrowing - Community Center Lease Agreement: On December 1, 2020, the City entered into Lease Agreements with the Public Property Financing Corporation of California, which subsequently assign the Agreement to Sterling National Bank (Assignee), under which the City leased certain facilities and the land on which the City’s Community Center is located, for which the Assignee made a one‐time up‐front lease payment to the City in the amount of $10,000,000. Simultaneously, the City will lease back from the Assignee with annual lease payments over a lease term of 19 years, at a fixed interest rate of 2.290% per year. The Sublease is secured by the leased property. The Sublease is repayable in semi‐annual payments beginning June 2021 through June 30, 2040. The pledge of repayment is from the General Fund.

66 305
Agenda Item # 11.

CITY OF LOS ALTOS

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 6 - LONG-TERM OBLIGATIONS (Continued)
At June 30, 2022, future debt service requirements were as follows:

Direct Borrowing
Years ending 2004 COP Community Center Lease
June 30 Principal Interest Principal Interest Total
2023 $140,000 $31,875 $413,877 $208,213 $793,965
2024 140,000 25,925 423,355 198,735 788,015
2025 150,000 19,975 433,050 189,040 792,065
2026 155,000 13,600 442,967 179,123 790,690
2027 165,000 7,012 453,111 168,979 794,102
2028-2032 - - 2,426,030 684,418 3,110,448
2033-2037 - - 2,716,829 393,620 3,110,449
2038-2040 - - 1,783,032 82,257 1,865,289
Total $750,000 $98,387 $9,092,251 $2,104,385 $12,045,023 B. Non-City Obligations
The following bonds are not reported in the City’s financial statements as they are special obligations payable solely from and secured by specific revenue sources as described in the resolutions and official statements of the respective issues. Neither the faith and credit nor the taxing power of the City is pledged for payment of these obligations.

Balance Balance Due Within Due in More
June 30, 2021 Retirements June 30, 2022 One Year Than One Year Blue Oak Lane $485,000 ($15,000) $470,000 $15,000 $455,000 Total $485,000 ($15,000) $470,000 $15,000 $455,000
Blue Oak Lane Special Assessment District: On November 5, 2009, Limited Obligation Improvement Bonds were issued for a newly formed Blue Oak Lane Sewer Assessment District (series 2009) to finance the acquisition and construction, by the City, of sanitary sewer improvements serving properties within the subject assessment District. These bonds are issued upon and secured by individual parcel levied assessments to be included in the annual property tax billings annually. The Bonds mature in 2039, were issued in a principal amount of $662,880 and are subject to semi-annual debt service payments administered by the City. 67 306
Agenda Item # 11.

CITY OF LOS ALTOS

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 7 - COMPENSATED ABSENCES PAYABLE
The City’s compensated absences at June 30, 2022, were as follows:

Governmental Business-type
Activities Activities Total
Balance at July 1, 2021 $1,924,038 $107,381 $2,031,419
Additions 215,462 36,390 251,852
Payments (686,202) (51,503) (737,705)
Balance at June 30, 2022 $1,453,298 $92,268 $1,545,566
Current Portion $363,325 $26,845 $390,170
Long-Term Portion $1,089,973 $65,423 $1,155,396
NOTE 8 - NET POSITION AND FUND BALANCES
A. Fund Balances
In the fund financial statements, governmental funds report the following classifications: nonspendable, restricted, committed, assigned, and unassigned. The City Council, as the highest level of decision making authority for the City, can commit fund balances through the adoption of a formal action in accordance with the adoption of its annual Financial Policy. This formal action includes committing funds through budget adoption or by resolution. This policy authorizes the City Manager to assign fund balances and has set the budgetary level of control at the Fund and Capital Project level for the governing body and the department level for the City Manager and assignees.

B. General Fund Reserve
The City Council has established a General Fund Reserve goal level of 20% of annual operating expenditures has set funds aside accordingly through its annual budgetary actions. These funds would be available for use in such conditions to mitigate negative economic fiscal impacts or State takeaways and can be activated within any one budget cycle through Council action. An economic downturn would entail a projected and/or sudden drop in core revenues (major tax and service revenue loss) of equal to or greater than 5% (including the impact of inflation) and/or a change in economic parameters (such as interest rates, debt service rates, commodity prices, pension rates) that cause a material change in expenditures of 5% or more, or the occurrence of a local natural disaster or unexpected financial claim requiring the immediate use of cash balances of 5% or more, or the occurrence of a local natural disaster or unexpected financial claim requiring the immediate use of cash balances. In fiscal year 2020/2021, in line with budget approval, the City reallocated the pre-established State Budget Stabilization reserve into the aforementioned General Fund reserve. This results in the establishment of one Reserve balance to assist in periods of economic downturn or extraordinary need. The City’s reserve goal is at 17.5% during fiscal year 2020/21 based on total expenses for the year.
68 307
Agenda Item # 11.

CITY OF LOS ALTOS

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 8 - NET POSITION AND FUND BALANCES (Continued)
C. Classifications
In the Government-wide Financial Statements, net position is classified in the following categories:

Net Investment in Capital Assets – This amount consists of capital assets net of accumulated depreciation and reduced by outstanding debt that attributed to the acquisition, construction, or improvement of the assets.

Restricted Net Position – This amount is restricted by external creditors, grantors, contributors, or laws or regulations of other governments.

Unrestricted Net Position – This amount is all net position that do not meet the definition of “net investment in capital assets” or “restricted net position.” As prescribed by GASB Statement No. 54, governmental funds report fund balance in classifications based primarily on the extent to which the City is bound to honor constraints on the specific purposes for which amounts in the funds can be spent. As of June 30, 2022, fund balances for government funds are made up of the following:
• Non-spendable Fund Balance – includes amounts that are (a) not in spendable form, or (b) legally or contractually required to be maintained intact. The “not in spendable form” criterion includes items that are not expected to be converted to cash, for example: inventories, prepaid amounts, long-term notes receivable and land.
• Restricted Fund Balance – includes amounts that can be spent only for the specific purposes stipulated by external resource providers, constitutionally or through enabling legislation.

Restrictions may effectively be changed or lifted only with the consent of resource providers. • Committed Fund Balance – Committed fund balances include amounts that can be used only for the specific purposes determined by a formal action of the City Council's highest level of decision-making authority. The City Council can, by adoption of a resolution prior to the end of the fiscal year, commit fund balance. Once adopted, the limitation imposed by the resolution remains in place until a similar action is taken (the adoption of another resolution) to remove or revise the limitation.
• Assigned Fund Balance – comprised of amounts intended to be used by the City for specific purposes that are neither restricted nor committed. Intent is expressed by (a) the City Council or (b) a body (for example: a budget or finance committee) or official to which the City Council has delegated the authority to assign amounts to be used for specific purposes. • Unassigned Fund Balance – conveys the residual classification for the General Fund and includes all amounts not contained in the other classifications. Unassigned amounts are technically available for any purpose. General fund is the only fund that reports a positive unassigned fund balance amount. In governmental funds other than the general fund, if expenditures incurred for specific purposes exceed the amounts that are restricted, committed, or assigned to those purposes, a negative unassigned fund balance is reported in that fund. 69 308
Agenda Item # 11.

CITY OF LOS ALTOS

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 8 - NET POSITION AND FUND BALANCES (Continued)
D. Policies
Order of Use
The standard also requires governments to disclose the accounting policies that indicate the order in which restricted, committed, assigned and unassigned amounts are spent. The City considers restricted amounts to have been spent first when expenditures are incurred and both restricted and unrestricted fund balances are available. Additionally, the City considers committed amounts to have been spent first, assigned amounts to have been spent second, and unassigned amounts to have been spent last when an expenditure is incurred for purposes of which committed, assigned, and unassigned fund balance is available. In circumstances when an expenditure is made for a purpose for which amounts are available in multiple fund balance classifications, fund balance is generally depleted in the order of restricted, committed, assigned, and unassigned.

Assignment and Commitment Authority
The City Council has approved by resolution a financial policy authorizing the City Manager to assign fund balances to facilitate year-end reporting requirements. The City Council, as the highest level of decision making authority for the City, has the ability to commit fund balances through the adoption by resolution. The same action must be taken to modify or rescind the commitment.

E. Fund Balances
Fund balances for all the major and non-major governmental funds as of June 30, 2022 were distributed as follows:

Other
In Lieu Capital Governmental
Fund Balance Classifications General Park Land Projects Funds Total Nonspendables:

Inventory and prepaids $214,134 $214,134
Total Nonspendable Fund Balances 214,134 214,134
Restricted for:

Debt service $370,388 370,388
Special revenue programs and projects $8,350,611 5,705,620 14,056,231 Total Restricted Fund Balances 8,350,611 6,076,008 14,426,619 Assigned to:

Emergency and operating 8,757,349 8,757,349
Veteran Mmorial reserve 8,615 8,615
PERS and OPEB reserve 292,614 292,614
Technology reserve 1,278,768 1,278,768
Capital and equipment (Note 8I):

Capital and equipment reserve 683,947 683,947
Construction in progress reserve $11,850,959 11,850,959 Total Assigned Fund Balances 10,337,346 11,850,959 683,947 22,872,252 Unassigned 9,058,574 (235,654) 8,822,920
Total Unassigned Fund Balances 9,058,574 (235,654) 8,822,920 Total Fund Balances $19,610,054 $8,350,611 $11,850,959 $6,524,301 $46,335,925 70 309
Agenda Item # 11.

CITY OF LOS ALTOS

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 8 - NET POSITION AND FUND BALANCES (Continued)
F. Net Deficit
The funds listed in the table below had fund balance deficits at June 30, 2022. These deficits are expected to be eliminated by future revenues.

Fund
Fund Deficit
Vehicle Impound Special Revenue Fund ($7,309)
Proposition 1B Special Revenue Fund (1,361)
Traffic Impact Fee Special Revenue Fund (226,984)
Storm Drain Enterprise Fund (20)
Liability Insurance Internal Service Fund (27,720)
G. OPEB Reserves
As of June 30, 2022, $1,500,000 in General Fund reserves have been assigned in recognition of existing Post-Retirement Health actuarial liability.

H. Encumbrances
The City utilized an encumbrance system during fiscal year 2022 to assist in controlling expenditures. Under this system, governmental funds are encumbered when purchase orders, contracts, or other commitments are signed or approved. The General fund had an encumbrance balance at June 30, 2022 of $955,964, which is reflected in the fiscal year 2022 budget.

I. Net Investment in Capital Assets
The balances related to Net Investment in Capital Assets are comprised of the following as of June 30, 2022:

Governmental Business-Type
Activities Activities Total
Capital Asset, net of accumulated depreciation $106,708,509 $15,356,092 $122,064,601 Minus: Capital-related long-term liabilities (9,842,251) (9,842,251) Add: Unspent bond proceeds
Net Investment in Capital Assets $96,866,258 $15,356,092 $112,222,350 71 310
Agenda Item # 11.

CITY OF LOS ALTOS

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 9 - RISK MANAGEMENT
A. Bay Cities Joint Powers Insurance Authority
The City is exposed to various risks of loss related to torts; theft of damage to and destruction of assets; errors and omissions; and floods for which the City is insured through Bay Cities Joint Powers Insurance Authority (Bay Cities).

The City has joined Bay Cities for general liability, property, errors and omissions, crimes and automobile physical damage coverage in the current year. Bay Cities is a public agency created in 1986 by and among various municipalities in Northern California to provide a pooled approach to liability insurance pursuant to the California Government Code. It is governed by a Board of Directors comprised of appointed officials from the member entities. The purpose of the pool is to provide various levels of liability coverage, claims administration, and loss control support to member agencies. Annually, each member pays an actuarially determined premium based on a formula which takes into account the prior three years’ loss experience, annual payroll, and population.

Bay Cities provides coverage for its Members in excess of the member's retained limit, or selfinsured retention (SIR), up to $1,000,000 per occurrence. Each Member retains the portion of every loss that falls within their SIR, ranging from $2,500 to $1,000,000. Bay Cities is also a member of the California Affiliated Risk Management Authorities (CARMA), a risk sharing joint powers authority. When losses exceed the $1,000,000 per occurrence limit, CARMA provides coverage up to $28,000,000.

The City self-insures the first $100,000 of each liability loss. Once the City’s deductible is met, Bay Cities becomes responsible for payment of all claims up to the upper limit. During the year ended June 30, 2022, the City contributed $6,609 or current year coverage.

The City continues to carry excess insurance policy for Workers’ Compensation claims through the CSAC Excess Insurance Authority JPA up to the statutory limits and does so using the services of a contracted third-party administrator. The City has a $250,000 deductible as of June 30, 2022.

During the year, the City contributed $1,355,225 for current year coverage.

As of June 30, 2022, $115,207 of revolving funds was held in trust on behalf of the City by the workers’ compensation third-party claims administrator. $10,000 is also being held by Bay Cities in the procurement of liability and claims coverage. The City will receive these funds upon termination of services subject to final withdrawal adjustments.

The Bay Cities financial statements may be obtained from Bay Cities Joint Powers Insurance Authority, Bickmore, 1750 Creekside Oaks Drive Suite 200, Sacramento, CA 95833. CSAC Excess Insurance Authority financial statements may be obtained from CSAC Excess Insurance Authority, 75 Iron Point Circle Suite 200, Folsom, CA 95630.
72 311
Agenda Item # 11.

CITY OF LOS ALTOS

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 9 - RISK MANAGEMENT (Continued)
B. Liability for Uninsured Claims
The GASB requires municipalities to record their liability for uninsured claims and to reflect the current portion of this liability as an expenditure in their financial statements. As discussed in the section above, the City has coverage for such claims, but it has retained the risk for the deductible or uninsured portion, of these claims. The current accounting standards require that this amount be separately identified and recorded as a liability. Changes in the balances of claims liabilities during the past three years were as follows:
2022 2021 2020
Unpaid claims, beginning of year $4,221,000 $3,750,000 $3,492,000 Incurred claims and changes in estimates 1,282,326 873,276 816,675 Claim payments (103,024) (402,276) (558,675)
Unpaid claims, end of year $5,400,302 $4,221,000 $3,750,000 Current Portion $1,118,735 $1,072,302 $930,123
Long-Term Portion $4,281,567 $3,148,698 $2,819,877
June 30,
In conformance with current accounting standards the City obtained an independent actuarial valuation of all outstanding Workers Compensation and Liability claims. Both the Workers Compensation report and the General Liability report presented a valuation as of December 31, 2021 and projected values through fiscal years 2022 and 2023. The fiscal year 2021-2022 values presented above reflect the estimated present value of open claims as developed in this actuarial report, and those values do not represent the pending claims. 73 312
Agenda Item # 11.

CITY OF LOS ALTOS

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 10 - SELF-FUNDED REIMBURSEMENT DENTAL AND VISION PLAN The City provides a self-funded reimbursement based dental and vision plans. The City’s contribution for these plans are accounted for in the Dental Reimbursement Fund. The City contributed $75 per month for each fulltime budgeted position. The funds accumulated are used to reimburse full-time salaried employees and their dependents, as well as council members for covered dental and vision claims. There are no administrative charges for this plan. Contributions and reimbursements for the past five fiscal years as follows:

Contribution Reimbursement
Fiscal year ended June 30, Amount Amount
2018 $127,800 $177,094
2019 125,324 238,064
2020 258,874 253,377
2021 264,121 308,786
2022 340,693 340,693
Total $1,116,812 $1,318,014
The dental and vision plan year commences January 1st of each calendar year. An annual maximum dental and vision reimbursements of $1,939 are provided for each employee and $1,291 for each of their dependents. Any remaining balance in the fund for each plan year is carried forward to the following year. In subsequent years, the maximum coverage for both employees and dependents is increased annually based on the Consumer Price Index but not to exceed 3%.

NOTE 11 - PENSION PLAN
For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City’s California Public Employees’ Retirement System (CalPERS) plan (Plan) and additions to/deductions from the Plan’s fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.

A. General Information about the Pension Plan
Plan Descriptions – All qualified permanent and probationary employees are eligible to participate in the City’s Miscellaneous and Safety Tier I, Tier II and PEPRA Employee Pension Rate Plan. The City’s Miscellaneous Rate Plan is part of the public agency cost-sharing multipleemployer defined benefit pension plan (PERF C), which is administered by the California Public Employees’ Retirement System (CalPERS). PERF C consists of a miscellaneous pool and a safety pool (also referred to as “risk pools”), which are comprised of individual employer miscellaneous and safety rate plans, respectively. Individual employers may sponsor more than one miscellaneous and safety rate plan. The employer participates in one cost-sharing multipleemployer defined benefit pension plan regardless of the number of rate plans the employer sponsors. The City sponsors three miscellaneous and three safety rate plans. Benefit provisions under the Plan are established by State statute and City resolution. CalPERS issues publicly available reports that include a full description of the pension plan regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website. 74 313
Agenda Item # 11.

CITY OF LOS ALTOS

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 11 - PENSION PLAN (Continued)
Benefits Provided – CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law.

The Plan’s provisions and benefits in effect at June 30, 2022, are summarized as follows:

Miscellaneous - Tier 1
Hire date Prior to January 1, 2012
Benefit formula 2.7% @ 55
Benefit vesting schedule 5 years service
Benefit payments monthly for life
Retirement age 50 - 67
Monthly benefits, as a % of eligible compensation 2.000% - 2.700% Required employee contribution rates 8.000%
Required employer contribution rates 14.020%
Miscellaneous - Tier 2
Hire date
January 1, 2012 -
December 31, 2012
Benefit formula 2% @ 60
Benefit vesting schedule 5 years service
Benefit payments monthly for life
Retirement age 50 - 67
Monthly benefits, as a % of eligible compensation 1.092% - 2.418% Required employee contribution rates 7.000%
Required employer contribution rates 8.650%
Miscellaneous - PEPRA
Hire date On or after January 1, 2013
Benefit formula 2% @ 62
Benefit vesting schedule 5 years service
Benefit payments monthly for life
Retirement age 52 - 67
Monthly benefits, as a % of eligible compensation 1.000% - 2.500% Required employee contribution rates 6.750%
Required employer contribution rates 7.590%
75 314
Agenda Item # 11.

CITY OF LOS ALTOS

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 11 - PENSION PLAN (Continued)
Safety - Tiers 1 and 2
Hire date Prior to January 1, 2012
Benefit formula 3% @ 50
Benefit vesting schedule 5 years service
Benefit payments monthly for life
Retirement age 50 - 55
Monthly benefits, as a % of eligible compensation 3.000% Required employee contribution rates 9.000%
Required employer contribution rates 23.710%
Safety - Tier 3
Hire date
January 1, 2012 -
December 31, 2012
Benefit formula 3% @ 55
Benefit vesting schedule 5 years service
Benefit payments monthly for life
Retirement age 50 - 55
Monthly benefits, as a % of eligible compensation 2.400% - 3.000% Required employee contribution rates 9.000%
Required employer contribution rates 20.640%
Safety - PEPRA
Hire date On or after January 1, 2013
Benefit formula 2.7% @ 57
Benefit vesting schedule 5 years service
Benefit payments monthly for life
Retirement age 50 - 57
Monthly benefits, as a % of eligible compensation 2.000% - 2.700% Required employee contribution rates 13.000%
Required employer contribution rates 13.130%
Beginning in fiscal year 2018, CalPERS collects employer contributions for the Plan as a percentage of payroll for the normal cost portion as noted in the rates above and as dollar amount for contributions toward the unfunded liability and side fund. The dollar amounts are billed on a monthly basis. The City’s required contribution for the unfunded liability and side fund was $5,172,564 in fiscal year 2022.

Contributions – Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding contributions for the Plan are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. 76 315
Agenda Item # 11.

CITY OF LOS ALTOS

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 11 - PENSION PLAN (Continued)
For the year ended June 30, 2022, the contributions recognized as part of pension expense for the Plan were as follows:

Miscellaneous Safety Total
Contributions - employer $3,953,914 $3,293,372 $7,247,286 B. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions
As of June 30, 2022, the City reported a net pension liability for its proportionate share of the net pension liability of the Plan as follows:

Proportionate Share
of Net Pension Liability
Miscellaneous $15,176,554
Safety 12,464,797
Total Net Pension Liability $27,641,351
The City’s net pension liability for the Plan is measured as the proportionate share of the net pension liability. The net pension liability of the Plan is measured as of June 30, 2021, and the total pension liability for the Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2020 rolled forward to June 30, 2021 using standard update procedures. The City’s proportion of the net pension liability was based on a projection of the City’s long-term share of contributions to the pension plan relative to the projected contributions of all participating employers, actuarially determined. The City’s proportionate share of the net pension liability for the Plan as of June 30, 2020 and 2021 was as follows:

Miscellaneous Safety
Proportion - June 30, 2020 0.55% 0.29%
Proportion - June 30, 2021 0.80% 0.36%
Change - Increase (Decrease) 0.25% 0.07%

77 316
Agenda Item # 11.

CITY OF LOS ALTOS

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 11 - PENSION PLAN (Continued)
For the year ended June 30, 2022, the City recognized pension expense of $3,903,350. At June 30, 2022, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Miscellaneous Plan
Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to measurement date $3,953,914 Differences between actual and expected experience 1,701,888 Changes in assumptions -
Change in employer's proportion and differences between the employer’s contributions and the employer’s
proportionate share of contributions ($190,794)
Net differences between projected and actual earnings
on plan investments (13,248,329)
Adjustments due to differences in proportion 272,790 (389,524) Miscellaneous Total $5,928,592 ($13,828,647)
Safety Plan
Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to measurement date $3,293,372 Differences between actual and expected experience 2,129,600 Changes in assumptions -
Change in employer's proportion and differences between the employer’s contributions and the employer’s
proportionate share of contributions ($803,328)
Net differences between projected and actual earnings
on plan investments (7,418,950)
Adjustments due to differences in proportion 434,970
Safety Total $5,857,942 ($8,222,278)
Grand total $11,786,534 ($22,050,925)
$7,247,286 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2023. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Miscellaneous Safety Total
Year Ended Annual Annual Annual
June 30 Amortization Amortization Amortization
2023 ($2,483,955) ($895,011) ($3,378,966)
2024 (2,673,916) (1,146,063) (3,819,979)
2025 (3,034,943) (1,575,042) (4,609,985)
2026 (3,661,155) (2,041,592) (5,702,747)
($11,853,969) ($5,657,708) ($17,511,677)
78 317
Agenda Item # 11.

CITY OF LOS ALTOS

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 11 - PENSION PLAN (Continued)
Actuarial Assumptions – For the measurement period ended June 30, 2021, the total pension liability was determined by rolling forward the June 30, 2020 total pension liability. The June 30, 2020 total pension liability is based on the following actuarial methods and assumptions:

Miscellaneous & Safety
Valuation Date 6/30/2020
Measurement Date 6/30/2021
Actuarial Cost Method Entry-Age Normal Cost Method
Actuarial Assumptions:

Discount Rate 7.15%
Inflation 2.50%
Salary Increase (1)
Investment Rate of Return 7.15% (2)
Mortality Derived using CalPERS' Membership Data for all funds (3) Post Retirement Benefit Increase Contract COLA up to 2.50% until Purchasing Power Protection Allowance Floor on Purchasing Power applies
(1) Depending on age, service and type of employment
(2) Net of pension plan investment expenses, including inflation (3) The mortality table used was developed based on CalPERS’ specific data. The table includes 15 years of mortality improvements using the Society of Actuaries Scale 90% of scale MP 2016. For more details on this table, please refer to the CalPERS December 2017 experience study report (based on CalPERS demographic data from 1997 to 2015) that can be found on the CalPERS website.

The underlying mortality assumptions and all other actuarial assumptions used in the June 30, 2019 valuation were based on the results of a December 2018 actuarial experience study for the period 1997 to 2015. Further details of the Experience Study can be found on the CalPERS website.

Discount Rate – The discount rate used to measure the total pension liability for the Plan was

7.15%. The projection of cash flows used to determine the discount rate for the Plan assumed that contributions from all plan members in the Public Employees Retirement Fund (PERF) will be made at the current member contribution rates and the contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. 79 318
Agenda Item # 11.

CITY OF LOS ALTOS

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 11 - PENSION PLAN (Continued)
In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Using historical and forecasted information for all the funds’ asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11+ years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the rounded single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equal to the single equivalent rate calculated above and adjusted to account for assumed administrative expenses.

The table below reflects the expected real rates of return by asset class.

Asset Class (a)
New Strategic
Allocation
Real Return
Years 1 - 10(b)
Real Return
Years 11+(c)
Global Equity 50.0% 4.80% 5.98%
Fixed Income 28.0% 1.00% 2.62%
Inflation Assets 0.0% 0.77% 1.81%
Private Equity 8.0% 6.30% 7.23%
Real Assets 13.0% 3.75% 4.93%
Liquidity 1.0% -0.92%
Total 100%
(a) In the CalPERS Annual Comprehensive Financial Report, Fixed Income is included in Global Debt Securities; Liquidity is included in Short-term Investments; Inflation Assets are included in both Global Equity Securities and Global Debt Securities. (b) An expected inflation of 2.00% used for this period. (c) An expected inflation of 2.92% used for this period.

Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate – The following presents the City’s proportionate share of the net pension liability for the Plan, calculated using the discount rate for the Plan, as well as what the City’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower or 1-percentage point higher than the current rate:

Miscellaneous Safety
1% Decrease 6.15% 6.15%
Net Pension Liability $26,170,547 $21,485,896
Current Discount Rate 7.15% 7.15%
Net Pension Liability $15,176,554 $12,464,797
1% Increase 8.15% 8.15%
Net Pension Liability $6,087,978 $5,055,079
80 319
Agenda Item # 11.

CITY OF LOS ALTOS

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 11 - PENSION PLAN (Continued)
Pension Plan Fiduciary Net Position – Detailed information about the pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports.

Reduction of CalPERS Discount Rate - In July 2021, CalPERS reported a preliminary 21.3% net return on investments for the 12‐month period that ended June 30, 2021. Under the Funding Risk Mitigation Policy approved by the CalPERS Board of Administration in 2015, the 21.3% net return was under the original expected return of 21.7%, which will trigger a reduction in the discount rate used to calculate employer and Public Employees' Pension Reform Act (PEPRA) member contributions. The Funding Risk Mitigation Policy seeks to reduce CalPERS funding risk over time, in which CalPERS investment performance that significantly outperforms the discount rate will trigger adjustments to the discount rate, expected investment return, and strategic asset allocation targets. This is the first time it has been triggered. The discount rate, or assumed rate of return, will drop to 6.8%, from its current level of 7%.

Based on these preliminary fiscal year returns, the CalPERS has announced the funded status of the overall PERF is an estimated 82%. This estimate is based on a 7% discount rate. Under the new

6.8% discount rate, however, CalPERS indicated the funded status of the overall PERF drops to 80%. This is because existing assets are assumed to grow at a slightly slower rate annually into the future. As intended under the Funding Risk Mitigation Policy, the lower discount rate increases the likelihood that CalPERS can reach its target over the longer term. The CalPERS Board of Administration will continue to review the discount rate through its Asset Liability Management process during the rest of the calendar year. CalPERS' final fiscal year 2021 investment performance will be calculated based on audited figures and will be reflected in contribution levels for contracting cities, counties, and special districts in fiscal year 2024. 81 320
Agenda Item # 11.

CITY OF LOS ALTOS

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 12 - OTHER POST EMPLOYMENT BENEFITS (OPEB)
A. General Information about the City’s Other Post Employment Benefit (OPEB) Plan Plan Description – The City’s Post Employment Benefit Plan is an agent-multiple-employer defined benefit healthcare plan administered by the California Employers’ Retiree Benefit Trust (CERBT).

Benefits Provided – The provisions and benefits of the City’s Other Post Employment Benefit Plan in effect at June 30, 2022, are summarized as follow:

All Bargaining Units
Eligibility
Benefit
Surviving Spouse Benefit
Other
1 Age 52 for Miscellaneous PEPRA members
Surviving spouse coverage continues based on CalPERS
retirement plan election
Retire directly from the City under CalPERS
(age 501
and 5 years of service or disability)
- 5% of active contribution times years in PEMHCA
(increase each year not greater than $100 per month)
- Joined PEMHCA in 2001
- 100% of PEMHCA minimum in 2022
- Monthly amounts:

Year Actives Retirees
2022 $ 132 $ 124
- No dental, vision & life or Medicare reimbursement
- Implicit rate subsidy included
For the year ended June 30, 2022, the City’s contributions to the Plan were $132,024.

Employees Covered by Benefit Terms – Membership in the plan consisted of the following at the measurement date of June 30, 2021:

Active employees 144
Inactive employees or beneficiaries currently
receiving benefit payments 73
Inactive employees entitled to but not yet
receiving benefit payments 95
Total 312
82 321
Agenda Item # 11.

CITY OF LOS ALTOS

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 12 - OTHER POST EMPLOYMENT BENEFITS (OPEB) (Continued) B. Net OPEB Liability
Actuarial Methods and Assumptions – The City net OPEB liability was measured as of June 30, 2021 and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation dated January 1, 2021 that was rolled forward using standard update procedures to determine the total OPEB liability as of June 30, 2021, based on the following actuarial methods and assumptions:

Actuarial Assumptions June 30, 2021 Measurement Date
Valuation Date January 01, 2021
Actuarial Cost Method • Entry Age Normal, Level Percentage of Payroll Contribution Policy • City contributes full Actuarial Determined Contribution through CERBT #1 • 6.25% at June 30, 2021
• 6.75% at June 30, 2020
• Expected City contributions projected to keep sufficient plan assets to pay all benefits from trust General Inflation • 2.50% annually
Termination • CalPERS 2000-2019 Experience Study
Mortality Improvement • Mortality Improvement Scale MP-2021 Salary Increases • Aggregate - 2.75% annually
• Merit - CalPERS 2000-2019 Experience Study
Medical Trend
• Non-Medicare - 6.50% for 2023, decreasing to an ultimate rate of 3.75% in 2076 and later years • Medicare (Non-Kaiser) - 5.65% for 2023, decreasing to an ultimate rate of 3.75% in 2076 and later years • Medicare (Kaiser) - 4.60% for 2023, decreasing to an ultimate rate of 3.75% in 2076 and later years PEMHCA Minimum Increases • 4% annually
Healthcare participation • 60%
Discount Rate and Long Term Expected Rate
of Return on Assets
The long-term expected rate of return on OPEB plan investments was determined using a buildingblock method in which expected future real rates of return (expected returns, net of OPEB plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table:

Long-Term
Target Expected Real
Asset Class Allocation Rate of Return
Global equity 59.0% 4.56%
Fixed income 25.0% 0.78%
TIPS 5.0% -0.08%
Commodities 3.0% 1.22%
REITs 8.0% 4.06%
Total 100.0%
Discount Rate – The discount rate used to measure the total OPEB liability was 6.75%. The projection of cash flows used to determine the discount rate assumed that City contributions will be made at rates equal to the actuarially determined contribution rates. Based on those assumptions, the OPEB plan’s fiduciary net position was projected to be available to make all projected OPEB payments for current active and inactive employees and beneficiaries. Therefore, the long-term expected rate of return on OPEB plan investments was applied to all periods of projected benefit payments to determine the total OPEB liability.
83 322
Agenda Item # 11.

CITY OF LOS ALTOS

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
NOTE 12 - OTHER POST EMPLOYMENT BENEFITS (OPEB) (Continued) C. Changes in Net OPEB Liability
The changes in the net OPEB liability follows:

Total OPEB Plan Fiduciary Net OPEB
Liability Net Position Liability/(Asset)
(a) (b) (a) - (b)
Balance at June 30, 2020 Measurement Date $3,607,820 $1,982,361 $1,625,459 Changes Recognized for the Measurement Period:

Service Cost 201,852 201,852
Interest on the total OPEB liability 252,731 252,731
Changes in benefit terms -
Differences between expected and actual experience (617,999) (617,999) Changes of assumptions (5,045) (5,045)
Contributions from the employer 132,024 (132,024)
Net investment income 545,286 (545,286)
Benefit payments (131,033) (131,033) -
Administrative expenses (1,742) 1,742
Net changes (299,494) 544,535 (844,029)
Balance at June 30, 2021 Measurement Date $3,308,326 $2,526,896 $781,430 The City paid $131,033 for retiree healthcare plan benefits, including $84,033 in premium payments for retirees, $47,000 for implied subsidies, and $991 for administrative costs. The plan does not issue separate financial statements.

Los Altos City CouncilMarch 28, 2023

Los Altos City Council
March 28, 2023