Agenda packet, regular meeting — Orinda City Council, August 15, 2023

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26 Orinda Way
Orinda, CA 94563
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CITY COUNCIL
AGENDA
Tuesday, August 15, 2023
7:00 PM - REGULAR MEETING
City Council
Agenda Page 1 08.15.23
How to follow and/or participate in the meeting:

IN PERSON SPEAKER CARDS: If you would like to speak during the public forum or on an item listed on the agenda, you are invited to submit a speaker card to the City Clerk. You will be permitted to speak even if you elect not to submit a speaker card or decline to provide information requested on the card. After the City Council has heard from everyone who submitted speaker cards, anyone electing not to submit a speaker card may form a line at the lectern. Public comment is generally limited to 3 minutes per speaker per agenda item.

REMOTE COMMENTS: Use the Zoom “raise hand” function on your computer screen, or the *9 function on your phone to comment remotely. Public comment is generally limited to 3 minutes per speaker per agenda item. The Zoom participation option is provided to the public as a courtesy in order to facilitate participation. The City cannot, however, guarantee the adequacy of the audio/video quality or that meeting participation will be uninterrupted via Zoom. If technical difficulties arise relating to the Zoom participation option, the meeting may continue with public attendance in person only.

WRITTEN COMMENTS: You may also submit a public comment in advance of the meeting by following instructions below:

Deliver to City Hall at 22 Orinda Way or send an e-mail to [email protected] by 3pm on the day of the meeting. Those comments will be forwarded to the City Council. They will also be made a part of the public record and be available to view in the public review binder at Orinda City Hall, 22 Orinda Way. In addition, they will be available electronically by 5pm on the day of the meeting by selecting the date of the meeting in this Box account link:
https://tinyurl.com/Orinda-Public-Comments
7:00 PM - REGULAR SESSION
A. CALL TO ORDER / ROLL CALL
City Council
Agenda Page 2 08.15.23
Councilmembers: Brandyn Iverson, Latika Malkani, Janet Riley Vice Mayor Darlene Gee, Mayor Inga Miller
B. PLEDGE OF ALLEGIANCE
C. ADOPTION OF AGENDA
The City Council may take action on any item listed on the agenda.

D. ITEMS FOR THE GOOD OF THE CITY
D.1. Proclamation Honoring Jennie Flores for her 35 Years of Service to the City of Orinda
D.2. Cyber Security Month Recognition and Presentation from Don Hester D.3. Proclamation Recognizing August 31, 2023 as International Drug Abuse and Overdose Awareness Day throughout the City of Orinda E. PUBLIC FORUM
The public forum provides an opportunity for members of the public to speak on any item within the jurisdiction of the City Council that is not on the agenda.

Additionally, a speaker has the option of addressing the Council on an item listed on the agenda, if the speaker will not be present when that agenda item is taken up. When an item is not listed on the agenda, State law prohibits Council discussion or action. Councilmembers may only “briefly respond” to statements made and questions posed. For example, State law allows Councilmembers to ask questions for clarification and provide a reference to staff or other resources for factual information. Additionally, consistent with the “Matters Initiated” rule contained in its Policies and Procedures Manual, the Council may also direct staff to report back and/or place a matter on a future agenda for discussion.

F. CONSENT CALENDAR
F.1. City Council Minutes
Recommendation:

Approve City Council Minutes:

1. July 11, 2023 Special Meeting

1. July 11, 2023 Regular Meeting

2. July 18, 2023 Special Meeting

3. July 18, 2023 Regular Meeting
F.2. Adopt Resolution No. 50-23 Regarding The Annual Review of City Investment Policy And Delegating Authority To Make Investments Recommendation:

Adopt Resolution 50-23 which completes the Annual Review, making minor changes to the policy; and delegating the authority to make investments
City Council
Agenda Page 3 08.15.23
F.3. Adoption of Resolution No. 49-23 Establishing the Property Tax Rates for the General Obligation Bond Series 2014 and Series 2016 for Fiscal Year 2023-2024
Recommendation:

Adopt Resolution No. 49-23 establishing the property tax rates for bonded indebtedness for Fiscal Year 2023-2024; and, direct staff to provide the information to the Contra Costa County Auditor-Controller for preparing of the tax levy.

F.4. Award of a Construction Contract to Goodfellow Bros. LLC. for the 2023 Annual Pavement Rehabilitation Project (Project No.4171).

Recommendation:

Staff recommends that the City Council: (1) approve the design of the 2023 Annual Paving Project (CIP No.4171), (2) award the Construction Contract to Goodfellow Bros. LLC. of Livermore, California for the total bid amount of $4,032,028.80 (Base Bid plus Alternate1), waiving a minor error in the unit price on Line 9 of Alternate 1, (3) authorize program expenditure up to $4,500,000 (including a 11.6% contingency) and (4) appropriate funding therof.

G. PUBLIC HEARING
H. POLICY MATTERS
H.1. Presentation of Draft Local Roadway Safety Plan (LRSP) Recommendation:

Receive presentation of the Draft Local Roadway Safety Plan (LRSP) and Provide Feedback to Staff.

H.2. Consider Making one Appointment to the Finance Advisory Committee (FAC) to Fill an Existing Vacancy
Recommendation:

Consider making one appointment to the FAC to fill one existing vacancy.

H.3. City Council Meeting Schedule for 2024
Recommendation:

Review, Amend, and Adopt City Council Meeting Schedule for 2024 I. COUNCILMEMBERS' REPORTS
J. CITY MANAGER'S REPORT
K. MATTERS INITIATED
L. CLOSED SESSION

1. OPEN SESSION IDENTIFICATION of Closed Session Matters

2. PUBLIC COMMENTS of Closed Session Matters
City Council
Agenda Page 4 08.15.23

3. CLOSED SESSION

4. REPORT OUT OF CLOSED SESSION
A. CONFERENCE WITH LEGAL COUNSEL -- EXISTING LITIGATION. Pursuant to Government Code Section 54956.9(d)(1), conference with Legal Counsel regarding existing litigation: ORINDANS FOR SAFE EMERGENCY EVACUATION v. City of Orinda, Contra Costa County Superior Court Case No.

N23-0579.

M. ADJOURNMENT
The next meeting of the Orinda City Council will be held on Tuesday, September 05, 2023 at 7:00 PM.

Please visit the City’s website at www.cityoforinda.org to view the City Council Calendar.

I, Sheri Marie Smith, City Clerk, declare under penalty of perjury under the laws of the State of California that this special meeting agenda has been posted at least 24 hours in advance at the Orinda City Hall, 22 Orinda Way and the Orinda Library, 26 Orinda Way.

Additional copies are available at the Orinda Library, 26 Orinda Way, and at the City’s website at www.cityoforinda.org. At least 24 hours in advance of the meeting, this agenda was also delivered to and received by each member of the City Council as well as each local newspaper, radio station and television station requesting written notice of special meetings.

I, Sheri Marie Smith, City Clerk, declare under penalty of perjury under the laws of the State of California that this regular meeting agenda has been posted at least 72 hours in advance at the Orinda City Hall, 22 Orinda Way and the Orinda Library, 26 Orinda Way. Additional copies are available at the Orinda Library, 26 Orinda Way, and at the City’s website at www.cityoforinda.org
~ Notices ~
There is a 90-day limit for the filing of a challenge in Court to certain City decisions that require a hearing by law, the receipt of evidence, and the exercise of discretion. The 90-day limit begins on the date the decision is final (Code of Civil Procedure §1094.6). Further, if you file a challenge in Court, you may be limited by California law, including but not limited to Government Code §65009, to those issues raised in connection with the public hearing. The City Council may be requested to reconsider a decision if the request is made prior to the next City Council meeting. For information on the next City Council meeting, please call 925.253.4221 or visit the website at www.cityoforinda.org. Unless otherwise noted, City Council actions include a determination that the California Environmental Quality Act (CEQA) does not apply. ~ Accessible Public Meetings ~
The City of Orinda will provide special assistance for disabled citizens to participate in public meetings upon advance notice. If you need auxiliary hearing aid or sign language assistance at least two (2) working days advanced notice is necessary. Please contact the City Clerk’s Office, 22 Orinda Way, Orinda, Ca 94563 or 925.253.4221 or [email protected] with the following information: name, mailing address, phone number and type of assistance requested.

PROCLAMATION Recognizing Jennie Flores for her
35 years of Service to the City of Orinda
WHEREAS, Jennie Flores joined the City of Orinda as an Accounting Clerk on August 3, 1988, just three years after the City of Orinda incorporated in 1985; and
WHEREAS, Jennie previously worked for Kaiser Aluminum & Chemical Corporation for 15 years as an Accounts Payable Clerk, and WHEREAS, Jennie was promoted to the Accounting Technician III position in 2002, and primarily is in charge of the Accounts Payable function in the City’s Finance Department, and
WHEREAS, Jennie is the longest-serving employee of the City of Orinda EVER; and
WHEREAS, Jennie is thorough, reliable, and always willing to help; and WHEREAS, Jennie is loved for her cheerful attitude and is always quick to smile, and
WHEREAS, Jennie has probably taken BART to work over 8000 times and processed over 80,000 checks; and
WHEREAS, Jennie’s unfailing service and loyalty to Orinda are appreciated by everyone she works with; and
WHEREAS, Jenny is a rock at the base of the foundation of our city government! NOW, THEREFORE BE IT RESOLVED THAT the City Council thanks Jennie Flores for her long and loyal service to the City of Orinda and hopes that she continues her service for many more years!
_____________________
Inga Miller, Mayor
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Communication: Proclamation Honoring Jennie Flores for her 35 Years of Service to the City of Orinda (ITEMS FOR THE GOOD OF THE CITY)

PROCLAMATION

OF THE CITY OF ORINDA
SUPPORT OF CYBERSECURITY AWARENESS MONTH 2023
WHEREAS, the City of Orinda recognizes that it plays a vital role in identifying, protecting its citizens from, and responding to cybersecurity threats that may have a significant impact on our individual and collective safety and privacy; and
WHEREAS, critical infrastructure (i.e., financial services, educational institutions, energy, telecommunications, transportation, utilities, health care, and emergency response systems, etc.) is increasingly reliant on the support of information systems and technology; and WHEREAS, cybersecurity education and awareness are crucial for everyone, including large corporations, small businesses, financial institutions, schools, government agencies, non-profit organizations, the home user, and anyone who connects to the internet; and WHEREAS, monitoring your accounts, being conscientious of what you share online, keeping computer software up to date, creating unique passwords and changing them regularly, installing antivirus programs and firewalls, and using mobile devices and other internet-connected devices safely, are ways people and organizations can protect themselves from phishing, viruses, ransomware, other types of malware, financial loss, and loss of sensitive data; and
WHEREAS, the National Institute of Standards and Technology (NIST) Cybersecurity Workforce Framework is a free resource to help organizations (both large and small, public and private) improve their cybersecurity practices through a practical approach to addressing the ever-evolving cybersecurity threats and challenges; and
WHEREAS, maintaining the security of cyberspace is a shared responsibility in which each of us has a critical role to play, and awareness of essential cyber hygiene will improve the security of City of Orinda’s information, infrastructure, and economy; and
WHEREAS, the Federal Government of the United States of America, the U.S. Department of Homeland Security’s Cybersecurity and Infrastructure Security Agency (www.cisa.gov), the Multi-State Information Sharing and Analysis Center (https://www.cisecurity.org/ms-isac), the National Association of State Chief Information Officers (www.nascio.org), and the National Cyber Security Alliance (www.staysafeonline.org) recognize Cybersecurity Awareness Month; and that in recognition of this, the 20th year of Cybersecurity Awareness Month, all citizens are encouraged to reduce online risks by visiting these websites, using the resources and learning about cybersecurity so they can put that knowledge into practice in their homes, schools, workplaces, and businesses.

NOW, THEREFORE BE IT RESOLVED THAT I, Inga Miller, Mayor of the City of Orinda, do hereby proclaim that the City of Orinda is officially supporting Cybersecurity Awareness Month 2023. _________________________
Inga Miller, Mayor
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Communication: Cyber Security Month Recognition and Presentation from Don Hester (ITEMS FOR THE GOOD OF THE CITY)

PROCLAMATION
Proclamation recognizing August 31, 2023 as International Drug Abuse and Overdose Awareness Day throughout the City of Orinda WHEREAS, the City of Orinda does affirm and acknowledge the harm and hardship caused by drug abuse and overdose; and;
WHEREAS, we recognize that the purpose of International Overdose Awareness Day is to remember loved ones lost to drug abuse and overdose and to end the stigma surrounding substance use disorder (SUD) and drugrelated deaths; and WHEREAS, we resolve to play our part in reducing the toll of drug abuse and overdose in our community, which continues to claim the lives of Orinda community members every year and forever affects those who loved and cared about them; and
WHEREAS, we affirm that the people affected by drug abuse and overdose are our sons and daughters, our mothers and fathers, our brothers and sisters, and deserving of our love, compassion and support, and remembrance; and
NOW THEREFORE BE IT RESOLVED, the Orinda City Council along with the Contra Costa County MEDS Coalition, BAART, and other community partners do hereby proclaim August 31st, 2023, as International Drug Abuse and Overdose Awareness Day throughout the City of Orinda.

Dated this 15th day of August 2023.
___________________
Inga Miller
Mayor of Orinda
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Communication: Proclamation Recognizing August 31, 2023 as International Drug Abuse and Overdose Awareness Day throughout the City of AGENDA TITLE: City Council Minutes
RECOMMENDATION:

Approve City Council Minutes:

1. July 11, 2023 Special Meeting

1. July 11, 2023 Regular Meeting

2. July 18, 2023 Special Meeting

3. July 18, 2023 Regular Meeting
ATTACHMENTS:

A. City Council Closed Session Minutes of July 11, 2023 B. City Council Meeting Minutes of July 11, 2023
C. City Council Closed Session Minutes for July 18, 2023 D. City Council Meeting Minutes of July 18, 2023
Respectfully Submitted by:

Sheri Smith
City Clerk
Prepared By: Sheri Smith, City Clerk
Approved by:

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July 11, 2023

CITY OF ORINDA

CITY COUNCIL CLOSED SESSION MINUTES
6:30 PM - SPECIAL MEETING
A. CALL TO ORDER/ ROLL CALL
Mayor Miller called the meeting to order at 6:30 p.m. and City Manager Biggs called the roll. All Councilmembers were present.

OPEN SESSION IDENTIFICATION OF CLOSED SESSION MATTERS
The Closed Session Matters were identified.

C. PUBLIC COMMENTS REGARDING CLOSED SESSION MATTERS
D. CLOSED SESSION
A. CONFERENCE WITH LABOR NEGOTIATORS. Pursuant to
Government Code Section 54957.6 - Conference with the City's designated labor negotiators, David Biggs (City Manager), Doug Alessio, (Assistant City Manager/ASD), Ginger Staton (Human Resources Manager), to review the City's position and instruct the City's designated representatives regarding negotiations all bargaining units.

E. OPEN SESSION REPORT REGARDING CLOSED SESSION
There was no reportable action.

F. ADJOURNMENT
The meeting adjourned at approximately 7:00 P.M.
_______________________
Sheri Marie Smith, City Clerk
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Attachment: City Council Closed Session Minutes of July 11, 2023 (3179 : City Council Minutes) Orinda City Council Minutes Page 1 of 13 07.11.23
JLY 11, 2023

CITY OF ORINDA

CITY COUNCIL MINUTES
Note: Written communications received from the public prior to the start of this meeting can be viewed on the City’s website meeting calendar. They are also kept in the City Clerk’s Office as part of the public record and available upon request ([email protected]). 7:00 P.M. –REGULAR MEETING– GARDEN ROOM, ORINDA LIBRARY A. CALL TO ORDER / ROLL CALL:

Mayor Miller called the Regular Meeting to order at approximately 7:00 p.m.

COUNCILMEMBERS PRESENT: Brandyn Iverson, Latika Malkani, Janet Riley Mayor Inga Miller, Vice Mayor Darlene Gee
COUNCILMEMBERS ABSENT: None
B. PLEDGE OF ALLEGIANCE – Led by Mayor Miller
C. ADOPTION OF AGENDA
MOTION by Councilmember Riley, and seconded by Councilmember Malkani, to adopt the agenda. Said motion carried by unanimous (5-0) roll call vote.

D. ITEMS FOR THE GOOD OF THE CITY
D.1. Certificate of Recognition to Orinda Senior Housing Foundation for Vista Verde Project – Pacific Coast Builders Conference 2023 Gold Nugget Award Winner
Mayor Miller and Councilmembers recognized Orinda Senior Housing Foundation for the Vista Verde Project as the winner of the Pacific Coast Builders Conference 2023 Gold Nugget Award, and recognized the need for affordable housing.

D.2. Contra Costa County Animal Services Department Update Beth Ward, Director of Animal Services, Contra Costa County Animal Services, provided an overview and update of the County’s Animal Services Department. She described the following:
• Animal Services Departments which include field services, shelter operations and medical services, administration, and community services; • The two categories of services which include public safety services and community services;
• Statistics of animals take and adoptions from 2022 field activities; • National trends in animal sheltering and highlights from January-December 2019- 2020 and quarters 1-4 of 2022;
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Attachment: City Council Meeting Minutes of July 11, 2023 (3179 : City Council Minutes) Orinda City Council Minutes Page 2 of 13 07.11.23
• Comparison of CCAS vs. national trends;
• A visual graphic of their kennel, capacity for care, intakes and outcomes; • Recent Bay Area news coverage regarding overcrowding, waiving adoption fees and addressing challenges;
• Decrease in intake of animals;
• Increase in outcomes and foster capacity;
• Success stories;
• CCAS euthanasia year over year and their reasons; and • Next steps
Councilmembers questioned and discussed with Director Ward animal shelter resources, rescue groups, saving lives and euthanasia, breaking the cycle, pet needs, adoption events, County funding and the fee schedule, the need for building more services, spay and neuter and veterinarian services.

Mayor Miller opened the Public Forum.

Bara Sapura, San Pablo, voiced concern regarding the very small number of foster families versus Oakland statistics, one county shelter versus more shelters in other counties, lack of behaviorists and volunteers who pay for assessments, kill lists, and thinks the County’s Animal Services is not doing a good job.

Irina Dyatlovskaya said she sent emails to the Council, clarifying that all dogs she sent are on the kill list, and dogs not sent on euthanasia days will not go on this list. She thinks dogs are not evaluated properly, rescue volunteers do not have access to see dogs at the kennels, they used to pull them before they were placed on kill lists, and the shelter does not put evaluations made by the rescue volunteers to emails sent to outside rescue.

She asked how rescue can commit to the dog that there are no evaluation notes. The rescue takes videos with limited time which are not included in emails which makes rescue very difficult. She referred to an example of a dog named Leonard and asked about the foster program and the length of time taken to bring forward programs that used to exist.

Mayor Miller closed the Public Forum.

Director Ward stated in addressing comments, she spoke about very large dogs, no requirement for a behaviorist at the shelter, and the best is to get them in a knowledgeable foster home for the dog to decompress and for them to know the best placement for the dog. All decisions do not always have a positive outcome even when foster families are very experienced, and dogs sometimes are triggered by things, and it is not an exact science, but they do the best they can.

Councilmember Malkani asked if there is a need or has there ever been a position in the shelter for a coordinator that works with the rescue groups. Director Ward said there has never been a regular coordinator position filled by an independent contractor who left the shelter; however, a new position starts July 1st will be for a Transfer Partner/Coordinator, and the shelter is already in motion to place that position.

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Attachment: City Council Meeting Minutes of July 11, 2023 (3179 : City Council Minutes) Orinda City Council Minutes Page 3 of 13 07.11.23
Mayor Miller asked what is needed in terms of volunteers. Director Ward said volunteers are the heart of any shelter and they are caring, compassionate, and there are a plethora of positions available.

City Manager Biggs stated the Board of Supervisors head some recent testimony and referred some of these issues to the Public Protection Committee. Director Ward stated the Committee met July 3rd and identified next steps forward which relates to Measure X funding. They will meet again on August 7th and reviewing that information.

Mayor Miller recognized another speaker.

MOTION by Councilmember Malkani, and seconded by Vice Mayor Gee, to re-open the Public Forum. Said motion carried by unanimous (5-0) roll call vote.

Mala said she prepared an 11-page letter to the Board of Supervisors, the Council, and the Governor, and it has attachments that will provide evidence of community concerns.

She asked Councilmembers to look up the word “disingenuous” which she described as the current situation, described negative comments about rescue partners, evidence regarding the animal crisis, and urgent concerns with spay and neuter services.

Mayor Miller emphasized the need for volunteers for the shelter, thanked speakers for their comments, and Director Ward for her presentation.

E. PUBLIC FORUM
David Beckman spoke about the concern that on 6 separate occasions, 6 LGBTQ flags have been stolen from the church over the last year which has not been solved. He asked to protect community members and houses of worship, speech, rights, and asked that the City address the problem. He thinks it matters when things like this happen repeatedly, noted this occurred as hate crimes in Southern California and asked for police to work on solving this hate crime.

Nick Waranoff said he explained to the public speakers on the animal control issue, told his grand-daughters that the City’s government is run by 5 women and he invited them to the meeting, knows 4 Councilmembers are lawyers as he was before retiring, and reported that he submitted 2 written comments on the lawsuit and the no net loss rule.

F. CONSENT CALENDAR
Mayor Miller asked and confirmed there were no items the public or Councilmembers wished to remove, and there were no public comments.

F.1. City Council Minutes
Recommendation:

Approve City Council Minutes:

1. May 9, 2023 Closed Session

2. June 6, 2023 Regular Meeting
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Attachment: City Council Meeting Minutes of July 11, 2023 (3179 : City Council Minutes) Orinda City Council Minutes Page 4 of 13 07.11.23

3. June 20, 2023 Closed Session

4. June 20, 2023 Regular Meeting
F.2. Quarterly Report of Cash Disbursements for the Period January 1, 2023 through March 31, 2023 and Summary of Revenue, Expenditures, and Preliminary Fund Balances for July 1, 2022 through March 31, 2023
Recommendation:

Staff recommends that the City Council receive and file this report of cash disbursements, and preliminary fund balances for the period of JanuaryMarch 2023.

F.3. Authorize Contract Amendment No. 4 with Fisher Geotechnical for OnCall Geotechnical Engineering Services Recommendation:

Staff recommends that the City Council approve Contract Amendment No. 4 for Fisher Geotechnical to increase the contract value to $300,000.

F.4. Approve Cooperative Paving Agreement between the City and East Bay Municipal Utility District (“EBMUD”) for Rehabilitation of Miner Road Following EBMUD Pipeline Project
Recommendation:

Staff recommends that the City Council approve the cost sharing agreement with EBMUD related to pavement restoration work on Miner Road; and authorize the City Manager to execute the agreement on behalf of the City.

MOTION by Councilmember Malkani, and seconded by Vice Mayor Gee, to approve Consent Calendar Items F.1.1, F.1.2, F.1.3, F.1.4, F.2, F.3, and F.4. Said motion carried by unanimous (5-0) roll call vote.

G. POLICY MATTERS
H.1. SSTOC Updated Goals
Recommendation:

Receive Report and Review Updated Wildfire Prevention and Emergency Preparedness Goals as promulgated by the Supplemental Sales Tax Commission, Discuss, and Provide Direction, if any.

Mayor Miller introduced the item and commented that the goals of the SSTOC in the staff report are solely the goals on wildfire safety and evacuation planning as opposed to also those which relate to one of the other mandates with Measure R at the time, which is drainage, flooding, and other disasters.

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Attachment: City Council Meeting Minutes of July 11, 2023 (3179 : City Council Minutes) Orinda City Council Minutes Page 5 of 13 07.11.23
City Manager Biggs gave the staff report and overview of the matter, stating the item was heard at the June 6, 2023 Council meeting during which time it was presented with the SSTOC’s Annual Report. He described the SSTOC ad-hoc committee to finetune goals, outreach, various programs, the chipper, use of the Fire District’s chipper for additional signups, the first wildfire prevention fair, the paving program, and starting on the storm drain issues. Staff can answer specific questions, and the Council is asked to receive the report and review the updated wildfire prevention and emergency preparedness goals, and provide any direction.

Vice Mayor Gee referred to the incentive program and monies for public benefit, and she asked if it is possible to formulate some sort of reimbursement or incentive tied to removing specific types of bad trees.

Mr. Biggs said this is an emerging area, but the City is in sync with the Marin WFPA programs and best practices. The current program can be used to remove a dead or dying tree, or the Fire District’s mandate to remove bamboo or junipers by the end of this year.

The County, through Measure X, is offering HOAs grants for removal of trees.

Councilmember Iverson stated she met with Commissioner Melanie Light on fire suppression and fire prevention and she thought fire was the problem. She is struggling with how the MOFD and SSTOC are not more of a single team with a single goal with lots of communication, even though their sources of funding are different, as well as evacuation.

Mayor Miller stated the SSTOC is an advisory commission to the Council and it is different from some other commissions. They would not have the SSTOC working with a sister agency.

Councilmember Malkani noted the 2x2 committee was created by the former Council and continues, and she and Vice Mayor Gee serve on that, together with two members of MOFD. One purpose of this committee is to facilitate that communication, which happens regularly on a staff level collaboratively with MODF staff.

In response to Councilmember Iverson’s questions, Mr. Biggs noted the City is served by a Fire District that has its own Board and funding sources, so they are not subordinate to the City. The City and MOFD do things collaboratively, but Orinda and not Moraga have such funding which can be applied. He then gave an historical background on fire departments and their roles in medical and fire response, prevention, education and inspection.

The City communicates and is engaged with the Fire District through a joint staff meeting with the Chief the second Tuesday of each month, spoke about a joint request for funding and securing $800,000, leveraging other resources, the 2x2 committee to enhance communications, staff interaction, education and outreach, enforcement, adoption of fire codes, assistance in bringing residential property into compliance, join Firewise neighborhoods, and staff-driven activities and programs.

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Attachment: City Council Meeting Minutes of July 11, 2023 (3179 : City Council Minutes) Orinda City Council Minutes Page 6 of 13 07.11.23
Councilmember Malkani said the goals are short and long-term recommendations, and those keep coming to the Council from the SSTOC periodically because this is an evolving area given climate change impacts people are noticing over the last 5 years, and best practices continue to evolve as well as recommendations.

Outreach and Education Coordinator James Duff spoke about a grey area where MOFD has good modeling software for wildland. The problem is when getting into the built environment. There is no good model that exists now to go from a wildland fire into a structure fire which is what the Wildland Urban Interface is. There is a lot of jargon in this field, and he could answer any other questions. He is trying to be the person who stays abreast of all of the cutting edge work and best practices and can provide a brief synopsis of what is emerging in the field.

Mr. Biggs spoke about the Fire District’s modeling and noted they are scheduled to update their Community Wildfire Prevention Plan in the next 2 years and City staff works in tandem with them and relies on their efforts, given they have that responsibility. They also work with the City’s Police Department and will soon hold an exercise, so this is more of a staff to staff activity, information of which is provided to the SSTOC. They are preparing a report card which will outline all efforts.

Mayor Miller opened the Public Forum.

Jud Hammon, SSTOC, referred to the Diablo Fire Safe Council and said it is an excellent resource. There is a Fire Safe Moraga-Orinda organization being established which can provide additional considerable help and asked to keep everyone’s eyes open for that.

Regarding evacuation, a huge resource aside from the Police Department is the Lamorinda CERT which is very active. The City and SSTOC have been in contact with them and are important when considering evacuation activities. Lastly, regarding the question of wildfire modeling, the SSTOC recommended to the Council last year to consider funding a proposal from Dr. John Radke and he understands the City’s concerns in funding that, but it is another possibility worth revisiting.

Councilmember Iverson asked how to best coordinate with Firewise, the Fire Safe Council, SSTOC, and Mr. Duff.

Mr. Biggs said between Ms. Cronin and Mr. Duff, they coordinate with Firewise, Mark Evans is spearheading development of the Moraga-Orinda Fire Safe Council, and their tri-fold brochure talks about the Fire District’s programs, the City’s programs, and encourages people to become Firewise neighborhoods.

Councilmember Malkani asked if SSTOC members Latimer or Hammon had any comments.

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Attachment: City Council Meeting Minutes of July 11, 2023 (3179 : City Council Minutes) Orinda City Council Minutes Page 7 of 13 07.11.23
Rachel Latimer, SSTOC member, said as the City Manager outlined, the SSTOC has focused more on fire safety because it is and continues to be an emerging field. Until the City hired Mr. Duff, there was no City staff with such knowledge. They continue to figure out ways to measure and continue to show efforts of what Measure R is doing in the City and around defensible space issues.

Mr. Biggs commented there were 2 written correspondences on this item in the packet from Nick Waranoff, Charles Porges, and Steve Cohn.

Mayor Miller asked and confirmed the City Manager also serves as the Director of Emergency Services under state law, activate the EOC and directing the emergency response, which is a uniform model in the State. They would activate the EOC, the County EOC, and draw resources. Tomorrow night, the Police Chief will provide an update to the SSTOC on his plans for the Measure R funds allocated to police. There has been a separate effort which was evacuation analysis and Safety Element Update. It is the Planning Commission that has the formal role on advising the Council on those items, but staff presented them to the SSTOC, as well.

Mayor Miller said she thinks this discussion has been helpful and suggested adding evacuation as a bullet point and goal and to flush out the drainage item or just handling of disasters. This will make this a clear document for the public to highlight all of what Measure R monies are going.

Councilmember Iverson said she still thinks this is wildly confusing, appreciates the explanations, agrees the 2x2 committee meets, but now she is hearing that fire suppression, prevention, and safety are different orbits, and that is not good enough for residents who do not think about this every day. She thinks the City can do better because there is fear of residents and there is a sense the City is a very grown in maturely landscaped community with tiny winding roads. She asked to incorporate Firewise neighborhood organizations and neighborhood communications, and what Fire Safe can do, the best Fire Safe communications, and for people to understand their roles. She thinks they can simplify the way to think about fire safety and prevention so a regular person knows what to do.

Mayor Miller then cited the various areas this information is highlighted for the community.

Councilmember Malkani said the SSTOC is already doing a lot of what was described as needing to be done, but they might not be communicating to everyone. She thinks they need a “Wildfire Risk Reduction 101” presentation to the Council. Some are new to this, and she also suggested holding another joint meeting with the SSTOC and the Council.

Mayor Miller said she understands why staff packaged the item a certain way, but as a liaison, she feels the public was not part of the decisions on drainage and roads, understands why they were carryovers, but they work together. She said things evolve in these areas, and these are ongoing discussions by the SSTOC.

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Attachment: City Council Meeting Minutes of July 11, 2023 (3179 : City Council Minutes) Orinda City Council Minutes Page 8 of 13 07.11.23
Councilmember Malkani said she wants to point out that the title of this document is not SSTOC goals. They can provide feedback that they would like the SSTOC to come up with holistic goals, and they may be trying to do that in the future, but there would need to be education on commissioners of roads and drains. This document is short and long term goals for wildfire risk reduction and emergency preparedness.

Mayor Miller stated the agenda title should be SSTOC Goals.

Councilmember Malkani said she thinks what is before them is the document they have on packet pages 121-123. She has specific feedback and comments. First, the document was excellent, appreciates this is an evolving area, a lot of best practices many of which are incorporated, said areas she wants to note that resonated as things she would like followed through on are:

1. Metrics; there are challenges in getting data that MOFD maintains but it is important to recognize the metrics;

2. The continuing collaboration should continue to emphasize and the Community Ambassador program is wonderful;

3. Encouraging how they engage individuals, and one reason to go back to the issue of modeling in some form is that if modeling can provide a mechanism for an additional level of community engagement to remove their own vegetation on their property, that might be another reason to revisit this in a smaller pilot program to see if it works;

4. Expanding incentive programs: She is excited about the possibility of the Fire Safe Council and bringing together residents of Orinda and Moraga who are excited to create their own non-profit that could tap into funding and work collaboratively to get some of the larger community programs; and

5. Regarding community education, the fair was fabulous and she would like them to work with the schools and do a Town Hall to Sleepy Hollow parents one night and have everyone there together, bring it to Del Rey parents one night, etc.

Vice Mayor Gee complemented the SSTOC. The item she would love to see tons of energy put into over the next few years is the coordination with the schools and the kids.

If parents push this down to every 4th grader that comes home with a piece of paper that asks them to go out, look in their yard, and fill out the fire safety sheet. She can remember doing this with her family of where to meet in an emergency, etc.

Councilmember Iverson agrees with Councilmember Malkani on the document, stating it was complete. She suggested having block parties in following up on Vice Mayor Gee’s comments.

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Attachment: City Council Meeting Minutes of July 11, 2023 (3179 : City Council Minutes) Orinda City Council Minutes Page 9 of 13 07.11.23
Mayor Miller recognized school program ideas, the checklist, consideration to look into incentive programs for larger projects, hold a “Fire 101” session annually, vegetation mapping, planning for removal of something and planning for what will replace it, a focus on fire and fire prevention, and staff-driven plans for roads and drains. She noted the City Manager is spending 40% of his time on this topic and she cannot be effective. The SSTOC is doing a tremendous job trying to learn the latest and greatest, along with staff, and she needs to strike a balance for roads and drains, which is also part of this.

Councilmember Riley said she thinks if a narrower report was presented, it might be helpful. It would help to ask the SSTOC to do separate goals.

Mr. Biggs said this is one piece of the scenario. He sees the Council as in more agreement. When the SSTOC did their annual report, the Council specifically asked them for updated goals related to wildfire prevention and emergency preparedness. The reason is that the City is spending the majority of Measure R money right now on infrastructure, mostly storm drains because they already have an approved plan by the CIOC, went to the Council, and it does not need adjustment. Globally, it was thought Measure R would fund about $10 to $40 million of need, so the City is not going to solve the storm drainage problem with Measure R. They are on an in-between period on roads so they gave the Council and SSTOC a preview and they will turn back to roads soon.

The SSTOC did provide information on roads, and this is how they got to improve them.

What the Mayor is saying is there are some in the community and on the Commission who would like the City to only spend Measure R money on wildfire prevention, but the CIP included the storm drain and the road projects in the 5-year CIP and endorsed this in the budget just approved. It left some fund balance for Measure R to invest in wildfire and emergency preparedness if there were initiatives or projects to be recommended by the SSTOC as a higher priority than storm drains or roads.

He thinks it would be helpful for some policy statement from the Council that says, they are generally comfortable with how money is being allocated now. This does not mean they would not want to shift more money into wildfire prevention, but they also live in a changing world where they may need more money for storm drains, flood response, or roads. There are some that would like to move in that direction. This is the little bit of the tension and the public policy-making he thinks is out there.

The way things landed with the SSTOC’s goals are generally comfortable, are on the right track in spending about the right amount of money, they are funding mostly storm drains with the balance of funds, and everyone will have a chance to review roads in the fall or the early part of next year because they must pause, step back, and look at what will be needed to keep roads up. So, it is a moving target but this is what the Mayor is trying to articulate. The Commission struggles with these varying perspectives, and it would be helpful for them to have a clear message from the Council as to what is the comfort level at the moment.

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Attachment: City Council Meeting Minutes of July 11, 2023 (3179 : City Council Minutes) Orinda City Council Minutes Page 10 of 13 07.11.23
Councilmember Riley confirmed the SSTOC has the responsibility of solely reviewing Measure R activities. Mayor Miller added the SSTOC is an advisory group to the Council overseeing the Measure R funds. Because of this public vetting of the CIOC roads and drains plan last approved years ago, but is still valid. She has a sense of discomfort with the roads and drains coming from staff and maybe getting more of a rubber stamp from the Commission.

Vice Mayor Gee said those goals did not come from staff. They came from the CIOC and were approved by the Council. Mayor Miller noted though that the CIOC is a different legal body than the SSTOC.

MOTION by Councilmember Riley, and seconded by Councilmember Malkani, to re-open the Public Forum. Said motion carried by unanimous (5-0) roll call vote.

Rachel Latimer said she asked if they should revisit the storm drains and roads, and the SSTOC decided they were very comfortable with the CIOC recommendation that was approved. That was why they chose to focus again on fire because it is much more of a nebulous area right now. They could, however, make that clearer in their document that the SSTOC agrees with the current recommendations, given the difference in the agenda title and the title of their document.

Mr. Biggs stated right now, the SSTOC has 4 or 5 CIOC members on it, which have led this discussion, as well. He understands some would say in the first 3 years, the City was supposed to spend the entirety of Measure R on wildfire prevention, which is not what he heard from staff from the prior City Manager, but also, after 3 years the City would not spend anything on wildfire prevention, but he does not think they will ever get out of the business. If they spent $1 million a year for the life of Measure R, they will spend more of the $8 or $9 million Measure R will generate in the first 3 years.

Mayor Miller said she has said many times with Commissioners that when they had that discussion they thought it was going to be 5 years and they would be done with fire prevention. But, they know now it is an on-going thing, so she asked the SSTOC not to be concerned they are only spending a small amount now. It is taking longer to get people to apply for grant programs, so it will be a longer term endeavor.

Councilmember Malkani said she was going back to the first March or February 2021 meeting and review of the charter. It is a good reminder to go back to it and to keep all of the oversight goals in mind.

Mr. Biggs said the Council does not have to formally approve or adopt the goals. Mr. Duff just reached out to the school presidents and they will work with them, they will work with the Fire Safe Council on education materials, and they are already doing much of what was suggested, but vegetation grows back.

Mayor Miller said if the Council wants to adopt the SSTOC goals, they can add comments about the schools involvement or just leave them as the goals.

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Attachment: City Council Meeting Minutes of July 11, 2023 (3179 : City Council Minutes) Orinda City Council Minutes Page 11 of 13 07.11.23
Councilmember Malkani said there was some request that in posting them, perhaps there be some contextualization of what they are, as one piece of the work of the SSTOC and one piece of what Measure R funds are being used for, so maybe some precursor paragraph to what is posted would be helpful.

Mr. Biggs said staff can add an additional introductory paragraph to this is the broader mandate of Measure R and the City is spending funds in these other areas, etc.

Mayor Miller thanked everyone for their comments.

H.2. Resolution Honoring Former Long-time Acclaimed Miramonte High School Teacher, Coach, and Mentor Otis (Odie) McCain by Naming an Athletic Field at Wilder Park in his Honor.

Recommendation:

Staff recommends the City Council approve City Council Resolution 44-23 in order to honor long-time acclaimed Miramonte High School teacher, coach, and mentor Otis (Odie) McCain by naming an athletic field at Wilder Park (Field 2) in his honor and direct staff to obtain and install agreed-upon signage.

City Manager Biggs said Councilmember Kosla initially brought this forward as a Matters Initiated, and the Council decided to proceed at that time with a naming, and asked staff to identify a particular site and bring back the resolution.

Parks and Recreation Director Todd Trimble echoed background comments of the City Manager, said staff is recommending approval of the resolution and moving forward.

Mayor Miller referred to fundraising and she believes former Councilmember Kosla was in charge of this.

Councilmember Iverson pointed out a date typo at the bottom of page 130. The meeting they were going to pass it has changed.

Mayor Miller opened the Public Forum, and there were no speakers.

MOTION by Vice Mayor Gee, and seconded by Councilmember Riley, to adopt Resolution 44-23, as amended, to honor long-time acclaimed Miramonte High School teacher, coach, and mentor Otis (Odie) McCain by naming an athletic field at Wilder Park (Field 2) in his honor, and direct staff to obtain and install agreedupon signage. Said motion carried by unanimous (5-0) roll call vote.

H.3. Designation of Voting Delegate and Potential Alternate at the League of California Cities Annual Conference
Recommendation:

Designate Voting Delegate (and potential Alternate) at the League of California Cities Annual Business Meeting at the September 20-22, 2023 League Annual Conference and Expo in Sacramento.

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Attachment: City Council Meeting Minutes of July 11, 2023 (3179 : City Council Minutes) Orinda City Council Minutes Page 12 of 13 07.11.23
Mayor Miller stated usually the Mayor attends and is the Voting Delegate, and the Vice Mayor is usually the Alternate. Vice Mayor Gee stated she is unable to attend and will be on vacation during the conference period.

Councilmember Malkani said she was planning to attend, and Mayor Miller confirmed the City has the budget to allow for all Councilmembers to attend. Mr. Biggs suggested Councilmembers reach out to the City Clerk if interested in attending.

Mayor Miller opened the Public Forum, and there were no speakers.

MOTION by Councilmember Iverson, and seconded by Councilmember Riley, to designate Mayor Miller as Voting Delegate and Councilmember Malkani as Alternate at the League of California Cities Annual Business Meeting at the September 20-22, 2023 League Annual Conference and Expo in Sacramento. Said motion carried by unanimous (5-0) roll call vote.

Mr. Biggs suggested a motion to extend the meeting, noting it was 10:00 p.m.

MOTION by Vice Mayor Gee, and seconded by Councilmember Malkani, to extend the meeting to 10:10 p.m. Said motion carried by unanimous (5-0) roll call vote.

H. COUNCILMEMBERS’ REPORTS – Vice Mayor Gee reported yesterday they held the CCTA Southwest Area Transportation Committee meeting as well as the Lamorinda Fee and Finance and Program Management Subcommittees. They moved forward with authorizing steps to utilize development fees in the transportation area to help the design progress on the new Smart Signals program.

They verified also that ultimately it will take some time, but the goal is all Lamorinda traffic signals in all 3 communities will end up being the same equipment, controls, and abilities to control remotely which will help with evacuation and traffic management.

Mayor Miller reported she met with Vivian Talagian today who is a Campolindo student who volunteers in Orinda. She is passionate about making sure she does what she can to reduce the impact of hostile architecture. One Bush Street is such an example. It was developed in the 1960’s to keep away people from Market Street in an earlier era, so they built benches very high, built a very slippery rock surface for walking. They have take pictures around the country of this and it is very similar to this.

I. CITY MANAGER’S REPORT – City Manager Biggs reported the community had a great 4th of July. He thanked all non-profit groups, City staff, and others. There are remaining Summer Concert Series and Movies in the Park. He also announced the City will be utilizing the Fire Department’s Chipper which is in hiatus during the summer because firefighters are doing inspections. Appointments will be publicized about the available chipper unit.

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Attachment: City Council Meeting Minutes of July 11, 2023 (3179 : City Council Minutes) Orinda City Council Minutes Page 13 of 13 07.11.23
J. MATTERS INITIATED – Councilmember Malkani suggested having a presentation on “Wildfire Risk Reduction 101” for the Council. Councilmember Iverson suggested doing this in 6 to 9 months so they can incorporate some of the actions. Mr. Biggs stated Mr. Duff is preparing a PowerPoint presentation for the community which can be shared with the Council. Councilmember Malkani agreed.

She also asked for a staff report relating to Mr. Beckman regarding the pride flag being removed 6 times and what can be done about the theft. Mr. Biggs said he will share some information to the Council given it is the subject of a criminal investigation.

K. ADJOURNMENT
The Regular Meeting was adjourned at approximately 9:59 p.m. to the next Regular Council Meeting on Tuesday, July 18, 2023, at 7:00 p.m. ______________________________________
Sheri Marie Smith, City Clerk
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Attachment: City Council Meeting Minutes of July 11, 2023 (3179 : City Council Minutes) July 18, 2023

CITY OF ORINDA

CITY COUNCIL CLOSED SESSION MINUTES
6:00 PM - SPECIAL MEETING
A. CALL TO ORDER/ ROLL CALL
Mayor Miller called the meeting to order at 6:00 p.m. and City Manager Biggs called the roll. All Councilmembers were present.

OPEN SESSION IDENTIFICATION OF CLOSED SESSION MATTERS
The Closed Session Matters were identified.

C. PUBLIC COMMENTS REGARDING CLOSED SESSION MATTERS
There was one person who spoke in person and one written communication received from Nick Waranoff.

D. CLOSED SESSION
A. CONFERENCE WITH LEGAL COUNSEL -- EXISTING LITIGATION.

Pursuant to Government Code Section 54956.9(d)(1), conference with Legal Counsel regarding existing litigation: ORINDANS FOR SAFE EMERGENCY EVACUATION v. City of Orinda, Contra Costa County Superior Court Case No. N23-0579.

E. OPEN SESSION REPORT REGARDING CLOSED SESSION
There was no reportable action.

F. ADJOURNMENT
The meeting adjourned at approximately 7:00 P.M.
_______________________
Sheri Marie Smith, City Clerk
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Attachment: City Council Closed Session Minutes for July 18, 2023 (3179 : City Council Minutes) Orinda City Council Minutes Page 1 of 9 07.18.23
JULY 18, 2023

CITY OF ORINDA

CITY COUNCIL MINUTES
Note: Written communications received from the public prior to the start of this meeting can be viewed on the City’s website meeting calendar. They are also kept in the City Clerk’s Office as part of the public record and available upon request ([email protected]). 7:00 P.M. –REGULAR MEETING– ORINDA LIBRARY AUDITORIUM
A. CALL TO ORDER / ROLL CALL:

Mayor Miller called the Regular Meeting to order at approximately 7:00 p.m. She stated the City Council had adjourned from the 6:00 p.m. Closed Session on the item listed at the end of this agenda, and there was no reportable action taken and one public comment received from Mr. Waranoff.

COUNCILMEMBERS PRESENT: Brandyn Iverson, Latika Malkani, Janet Riley Mayor Inga Miller, Vice Mayor Darlene Gee
COUNCILMEMBERS ABSENT: None
B. PLEDGE OF ALLEGIANCE – Led by Mayor Miller
C. ADOPTION OF AGENDA
MOTION by Vice Mayor Gee, and seconded by Councilmember Malkani, to adopt the agenda. Said motion carried by unanimous (5-0) roll call vote.

D. ITEMS FOR THE GOOD OF THE CITY
D.1. Proclamation Recognizing August 1, 2023, as National Night Out in the City of Orinda
Mayor Miller presented the proclamation and recognized the Police Department for holding the National Night Out in the City of Orinda on August 1, 2023. The Police are hosting an Open House that evening so for those not having an event at their home might plan it for another evening so they can come and celebrate.

Police Chief Sullivan stated the National Night Out event is from 5:00 to 8:00 p.m. and will extend it if necessary. They will collecting donations for the Family Justice Center and school supplies, and there is an opportunity to Dunk the Chief in a dunk tank. They will be grilling food, booths set up to discuss firearms storage, free gun locks, community warning system signups, Nixle signups, emergency preparedness and evacuation information. It will be held in front of the Police Department and will have officers going to other neighborhoods that are hosting National Night Out events, as well.

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Attachment: City Council Meeting Minutes of July 18, 2023 (3179 : City Council Minutes) Orinda City Council Minutes Page 2 of 9 07.18.23
Councilmembers thanked Mayor Miller and Police Chief Sullivan for organizing National Night Out and bringing residents together.

D.2. California Consulting - Grant Update
Steve Samuelian, Principal, California Consulting, Inc., acknowledged the many staff members they work with monthly at the City who do a terrific job, have a long, detailed grant meeting with them and then provide the City Manager’s Office with a monthly written report with specificity on each grant they are working on for the City, conduct go/no go analysis and why they decided to apply for the grant or why they did not in conjunction and collaboration with City staff.

They work with almost 100 cities and school districts across the State and Orinda has a fantastic team, providing all information they need on-time, answering questions, and this is a big part of grant writing. He acknowledged David Marquez, Statewide Senior Grants Manager, Matthew Kaam, Project Manager/Grant Writer, and Samantha Di Ambrosio, Management Assistant.

Mr. Samuelian then provided PowerPoint presentation covering a background of California Consulting, Inc., statistics of over 1400 grant applications, grant writers and their experience, applications awarded resulting in over $1.6 billion, and public agency clients across the state, their services, the process, their corporate team, Orinda awards, denied grants, grants pending and in progress, grants under consideration, those on the lookout for, grant vetting considerations.

Councilmember Malkani thanked Mr. Samuelian for his presentation, said the U.S.

Department of Transportation Protect Grant was very popular and also very topical and improvement of evacuations is important. She asked if this is something targeted more for underserved communities.

David Marquez, Statewide Senior Grants Manager, said this grant will serve disadvantaged communities but it also looks primarily at climate adaptation that affect transportation caused by climate change and also looking at issues with hazard mitigation at a local and regional level. It is not just about eligibility but they also look at readiness and projects that can benefit the region. They looked at it carefully, refer to guidelines and feel this could have a local and regional benefit.

Vice Mayor Gee thanked Mr. Samuelian for his presentation. He spoke about the list and categories and she is curious about the universe of opportunity related to climate change.

She asked about consideration of grants that are multi-jurisdictional such as involving EBMUD or EBRPD or MOFD which are also tied into challenges the City is trying to address.

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Attachment: City Council Meeting Minutes of July 18, 2023 (3179 : City Council Minutes) Orinda City Council Minutes Page 3 of 9 07.18.23
Mr. Samuelian replied there has never been this much money available at the federal level for climate adaptation, climate mitigation, they are now able to do GHG emission reduction calculations, and they are able to write a lot more grants. To be competitive they look at opportunities that can have a regional impact. They have talked about partnerships, MOUs, and they are able to collaborate with a regional agency.

Councilmember Iverson noted the firm writes grants but are not lobbyists. She asked if the company champions Orinda’s grant eligibility through the process, and asked and confirmed ATP is an acronym for Active Transportation Program which is a Caltrans grant and changed from its former name of Safe Routes to Schools 7 years ago. It includes everything other than combustible transportation.

Mr. Samuelian said they do not do lobbying at the federal or state level, although if it is grant related they can be involved in speaking with different agencies. Often, they will set up meetings with the State Water Resource Control Board and their clients to talk about grants and funding but not bills or legislation. Another example is the earmark for the Parks and Recreation money which the City Manager indicated they received through Assemblymember Rebecca Bauer-Kahan’s office. Mr. Samuelian recognized the City’s work for achieving those dollars.

Mr. Marquez said over the last 3 years he wrote several appropriations-related grants primarily for infrastructure for community centers. They put together the application and then it goes to Congress and eventually to the Appropriations Committee, gets adopted, and funding is awarded. He still must fill out an entire application on the formal U.S.

Federal Grants portal called grants.gov even though they are getting the funding. There is also compliance follow-up as well.

Councilmember Malkani said now that the City has been through over a year with grants being awarded and denied, the City is not an under-served community and she asked if they would have greater success if they were to partner with other agencies for wildfire resilience, climate adaptability, or infrastructure, parks, and other community spaces grants which would show more of a regional impact.

Mr. Marquez said he thinks it is case-by-case. If they find it in their strategic interest, it benefits the region and they get support from the regional agencies, they can look at its alignment with the City’s CIP or strategic plans and see if there is alignment there, as well as with the State. When dealing with wildfire, in some cases disadvantaged communities will have preference but not in all cases. When it comes to sustainability, there are affluent cities dealing with climate adaptation-related projects due to erosion on cliffsides, affecting transportation and roads, as well as rural area issues. They will continue to see an emphasis on grants that respond to climate change and highway safety grants when injuries and fatalities occur.

Mr. Biggs noted California Consulting also does some grant writing for non-profits and staff asks that they keep an eye out for community non-profits such as the new Fire Safe Moraga-Orinda that are eligible for direct funding through the State, but they have referred other grant opportunities to them.

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Attachment: City Council Meeting Minutes of July 18, 2023 (3179 : City Council Minutes) Orinda City Council Minutes Page 4 of 9 07.18.23
Mayor Miller said another area of focus could be Seniors Around Town because this is an area of tremendous need where they rely on volunteers for transportation through a non-profit group.

Mayor Miller opened the Public Forum.

Sora O’Doherty, Lamorinda Weekly, asked if there is a conflict of interest in California Consulting writing grants for the same subject for many cities and asked if Orinda is suffering because it does not have a lobbyist to continue to promote its grant applications.

Mayor Miller asked and confirmed Mr. Samuelian could answer the question.

Mr. Samuelian said this is a common question and there is not a conflict of interest. It is independent federal and state agencies doing the scoring of applications and not California Consulting. Regarding whether the City can hire a lobbyist, this is a policy decision for the Council.

Mr. Marquez added that they are not going to write a grant unless it is competitive. They usually have a writer assigned to a City and it is important for that writer that they become an advocate for that City who works with staff as a team. He thinks their relationships with City officials are more effective than a lobbyist.

Councilmember Riley asked if they could obtain more information on how successful lobbyists are. Mr. Biggs said this was a referral from the Council which staff will be bringing back as to whether to retain a lobbyist or not. Most programmatic grants are being scored by a matrix and often times prohibit lobbying.

Mayor Miller and Councilmembers thanked California Consulting staff for their presentation.

E. PUBLIC FORUM
Sandy Pearson, spoke about wildfire risk and the experience in her Firewise community neighborhood. They thought they were doing well in clearing brush and were surprised when everyone got a pre-citation in June and they scrambled to hire contractors. It was expensive, people are confused as to what is required, and she presented an article from Marin County called “Ecologically sound practices for reducing wildfire risk” which was developed in collaboration between fire agencies and the environmental community to prepare a set of best practices. This is something Orinda could use for its residents.

Mayor Miller thanked Ms. Pearson for her comments and her stewardship with neighbors, and Micki Cronin and James Duff have taken note of the article.

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Attachment: City Council Meeting Minutes of July 18, 2023 (3179 : City Council Minutes) Orinda City Council Minutes Page 5 of 9 07.18.23
Nick Waranoff stated the Fire District has a free Ambassador program of people who will come out and look at properties and provide advice. He thinks the City is heading for an iceberg with little time to avoid it, which is the no net loss rule. He referred to his detailed statements previously submitted, which he described, and urged the City to propose to HCD a high density of 120 units/acre, mixed-income, mixed-use with amenities project which will obviate the criticisms when the City was proposing a low-income outpost project.

Mr. Biggs said staff does not necessarily agree with Mr. Waranoff on deadlines and they have consulted with HCD on it.

F. CONSENT CALENDAR
Mayor Miller asked and confirmed Mr. Waranoff requested the removal of Item F.1.

Councilmembers did not wish to remove any items.

F.2. Request Approval for Purchase of Colin Selig’s Artwork Pieces Utilizing a Combination of Private Donations and City Funds Recommendation:

Approve Resolution No. 46-23 authorizing the purchase by the City of Orinda of artwork by Colin Selig (Asymmetric Chair, Bean Love Seat, Chaise Love Seat, Low Back Bubble Bench) using a Combination of Private Donations and City Funds by Approving the Attached Budget Adjustment Form 002-24.

F.3. Adopt Resolution 45-23 to update Resolution 43-88 Recognizing the Orinda Teen Advisory Council (OTAC)
Recommendation:

Staff recommends the City Council adopt Resolution 45-23 clarifying the operation of the Orinda Teen Advisory Council (OTAC), including that it is not a body subject to the Brown Act, but is, instead, a recreation program operated by the Parks and Recreation Department.

MOTION by Councilmember Malkani, and seconded by Councilmember Iverson, to approve Consent Calendar Items F.2 and F.3. Said motion carried by unanimous (5-0) roll call vote.

Item Pulled from the Consent Calendar:

F.1. Resolution to Support Local, State, and Federal Efforts to Exonerate the Port Chicago
Recommendation:

Adopt Resolution 46-23 a Resolution to Support Local, State, and Federal Efforts to Exonerate the Port Chicago
Mayor Miller said this came through from the Mayors’ Conference and has been worked on for a long time by certain agencies including EBRPD and several cities in Contra Costa County have already adopted the Resolution.

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Attachment: City Council Meeting Minutes of July 18, 2023 (3179 : City Council Minutes) Orinda City Council Minutes Page 6 of 9 07.18.23
The Contra Costa Bar Association also created a working group relatively recently to bring forward the Port Chicago 50. By bringing this forward and bringing this painful part of history forward and discussing it and honoring those who were part of the terrible things that happened, it can help build trust in their legal system today. There is a great desire to see all cities in the County to pass this and go beyond that nationwide and be a talking piece as something people can come together on.

Mayor Miller opened the Public Forum.

Nick Waranoff said his objection to the proposed resolution is not that it is not a worthy cause. His objection is he does not see the nexus to the City of Orinda and why this particular issue should be singled out from among all the worthy causes out there, including many that directly affect the residents of Orinda. He suggested adopting a Resolution that BART make itself safer and cleaner as an example.

Mayor Miller agreed the City is hopping on the band wagon someone else started, but she believes it is relevant to Orinda, which she described.

Councilmember Malkani said she was not aware of this and educated herself about it, and she thinks there are things done which are more symbolic and important relating to social justice, equality, and ensuring people have fair working conditions.

Mr. Biggs added that in assisting the Mayor on the staff report, Congressman DeSaulnier is one of the authors of the resolution seeking the exoneration, and this is used as to whether the Council will take positions on federal and state legislation which also applies in this instance.

Councilmember Iverson said she had a similar reaction to Mr. Waranoff when she saw this. She never wants to be a Council that postures about foreign or national policy or everything that is a good cause as they will never get through the Items for the Good of the City. She would like for the Council to try to make the item for the good of the City mostly for Orinda. She read it carefully and saw it is relevant to Orinda because they are part of Contra Costa County and the story, and voiced support for it.

MOTION by Vice Mayor Gee, and seconded by Councilmember Riley, to approve Consent Calendar Item F.1. Said motion carried by unanimous (5-0) roll call vote.

G. PUBLIC HEARING – None.

H. POLICY MATTERS
H.1. Update Designation of Potential Voting Alternate at the League of California Cities Annual Conference
Recommendation:

Update Designation of Voting Alternate at the League of California Cities Annual Business Meeting at the September 20-22, 2023 League Annual Conference and Expo in Sacramento
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Attachment: City Council Meeting Minutes of July 18, 2023 (3179 : City Council Minutes) Orinda City Council Minutes Page 7 of 9 07.18.23
City Clerk Smith stated at the last meeting the Council discussed this item and both Mayor Miller and Councilmember Malkani thought they could attend the conference.

Subsequently, Councilmember Malkani learned she is unavailable and a voting Alternate needs to be considered.

Councilmember Malkani said the voting delegate portion occurs on Friday, and it makes more sense if another Councilmember could attend the entire conference.

Mayor Miller recognized Councilmember Riley and Vice Mayor Gee cannot attend, and Councilmember Malkani will speak in San Diego at that time. Councilmember Malkani said they could have both she and Councilmember Iverson listed as the Alternate position. In the event that one of them attend on Friday, she trusts that one of them will make it happen and it will be a non-issue.

Mayor Miller opened the Public Forum, and there were no speakers.

MOTION by Councilmember Malkani, and seconded by Councilmember Iverson, to appoint Councilmember Malkani and Councilmember Iverson to serve as Alternate.

Said motion carried by unanimous (5-0) roll call vote.

I. COUNCILMEMBERS’ REPORTS – Councilmember Iverson reported on her attendance at the TSAC last night and discovered they are struggling with a conflict of laws problem where the MOFD’s authority over the safety aspect of traffic calming is in conflict with some of the City mandates and priorities and directions on traffic calming. She empathized with residents who were told this is the process and if followed they will get what they are looking for. State laws are in conflict have created a “no” answer. She wants to share these experiences so they can get ahead of issues that have unfair outcomes which are out of their control. There are other conflicts she described, and while not an issue to act on, it is something to be aware of.

Mayor Miller reported on her attendance to the SSTOC meeting. It was reported staff is working on agencies and local master gardeners on a planter’s list to help address questions. It is the dead trees and the eucalyptus deemed for removal.

She also met as EBMUD liaison with the Director who shared that on the other side of the hill there are different ideas about whether or not the eucalyptus trees should come down because they hold up the hillsides and keep more flammable landscape from growing. They also talked about the conflict between droughtresistant versus lush landscaping, so she is looking forward to review of guidelines that should help.

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Attachment: City Council Meeting Minutes of July 18, 2023 (3179 : City Council Minutes) Orinda City Council Minutes Page 8 of 9 07.18.23
Councilmember Malkani reported on her attendance to the Parks and Recreation Commission meeting. The Pickleball community was in attendance and cited the positive exchange between commissioners, staff and community members regarding the budget referral. An ad-hoc committee was formed to look at potential locations throughout town for dedicated Pickleball courts and a dog park.

J. CITY MANAGER’S REPORT – City Manager Biggs reported the Police Department n is hosting the National Night Out event on August 1st from 5 to 8 p.m. in front of the police department. They are requesting donations of school supplies for the Family Justice Center, they will have a Dunk the Chief tank, and lots of information about wildfire prevention and police services. This will complement the neighborhood National Night Out events, as well.

He reminded everyone that they are in fire season and people should think ahead.

They are installing the new Red Flag parking restriction signs at the Miner Road area and also outreach and direct mail to all residents about how the system works.

K. MATTERS INITIATED – Vice Mayor Gee asked if staff is returning with an item regarding the sandwich board signs all over town. Mr. Biggs said staff was to do direct contact to businesses reminding them of requirements. Depending on response, staff will report back.

MOTION by Vice Mayor Gee, and seconded by Councilmember Iverson, to direct staff to bring back an item regarding a “Discussion of the Proliferation of Sandwich Board Signs.’ Said motion carried by unanimous (5-0) roll call vote.

Councilmember Iverson said the tennis and current future Pickleball reservation system is not modern and every country club or swim club has the ability to do court and swim lane reservations online. For those not regularly playing, it would be a service to the informal players to try and have an online reservation system. She asked this be a referral to the City Manager.

Mr. Biggs said he heard about this today, was not aware there is an issue, and it would have to be agendized as a referral to the Parks and Recreation Commission. Staff could bring back an update or it could be handled at the staff level.

Councilmember Iverson recommended it be handled at a staff level as to how the task could get delegated to someone willing to review it. Councilmember Malkani said she just heard this feedback at the Commission meeting and thinks staff can work with it and it can come to the Council as needed.

Councilmember Malkani said she has a conflict and cannot attend their meeting on August 15th. She asked if by chance the other Councilmembers might be available on August 1st or 8th. Mr. Biggs stated staff will not be available and plans their vacations for these dates and the only option is to shift it back a week to the 22nd.

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Attachment: City Council Meeting Minutes of July 18, 2023 (3179 : City Council Minutes) Orinda City Council Minutes Page 9 of 9 07.18.23
Mayor Miller said she can attend, but Councilmember Iverson and Vice Mayor Gee stated they could not attend on the 22nd.

L. CLOSED SESSION
Mayor Miller stated the Council did not have a need to go back into Closed Session, and she asked and confirmed there were no speakers.

1. OPEN SESSION IDENTIFICATION of Closed Session Matters

2. PUBLIC COMMENTS of Closed Session Matters - None

3. CLOSED SESSION

M. ADJOURNMENT
The Regular Meeting was adjourned at approximately 8:45 p.m. to the next Regular Council Meeting on Tuesday, August 15, 2023, at 7:00 p.m. ______________________________________
Sheri Marie Smith, City Clerk
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Attachment: City Council Meeting Minutes of July 18, 2023 (3179 : City Council Minutes) City Council
Staff Report
Agenda Item: F.2
Date: August 15, 2023
Department: City Council
AGENDA TITLE: Adopt Resolution No. 50-23 Regarding The Annual Review of City Investment Policy And Delegating Authority To Make Investments RECOMMENDATION:

Adopt Resolution 50-23 which completes the Annual Review, making minor changes to the policy; and delegating the authority to make investments BACKGROUND:

On August 16, 2022, the City Council adopted Resolution 42-22 which established the Investment Policy that is currently being used to guide the City Investment portfolio. The policy follows recommended guidelines for the prudent management of public funds.

The City portfolio is managed by Chandler Asset Management which also assists in reviewing and proposing changes to the adopted policy. The current policy states that it is to be reviewed annually by the Finance Advisory Committee (FAC) and that any recommended changes are to be presented to City Council no later than June 30th. The review of the policy by the Finance Advisory Committee occurred at the July 26th meeting. This delayed the presentation to the City Council until after June 30th.

As required under State law the proposed resolution also includes the City Council delegation of authority to make investments.

DISCUSSION:

The City’s current portfolio includes a General Reserve managed by Chandler Asset Management based on the City Investment policy in discussion with City Staff. In addition to the funds that they manage the City retains a pooled investment account in the Local Agency Investment Fund (LAIF), which is managed by the State Treasurer.

Focus of a Public Agency Portfolio
It is important to keep in mind that a public agency portfolio has distinct differences from private investments in terms of goals and risks. The 2021 publication prepared by the California Debt Investment Advisory Commission (CDIAC) and titled “Local Agency Investment Guidelines”, described this difference as follows:
“The vast majority of local agency portfolios are managed with a buy and hold investment strategy. Investments are purchased with the intent and capacity to hold them until maturity. At times, market forces or operations may dictate exchanging one security for another or selling a security before maturity.

Continuous analysis and fine tuning of the investment portfolio are considered part of prudent investment management. This passive investment strategy is F.2
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different from one in which securities are purchased with the intent to sell them before maturity at a profit or the use of leverage to enhance yield.” Given the focus of public funds the investment objectives are to always seek safety and liquidity which take precedence and may impact a market rate return compared to private or personal portfolios.

Investment Manager Review
The Administrative Services Director met with staff from Chandler Asset Management and reviewed the current policy to ensure its conformance with all applicable state law and any changes to industry best practices. That review resulted in Chandler Asset Management recommending minor changes to the policy as it is currently written in order to conform with Senate Bill 1489 titled “Local Government Omnibus Act of 2002” which is a compilation of minor changes to a variety of laws impacting local governments. Chandler analyzed SB1489 and is recommending the redlined changes to Orinda’s Investment Policy included as Attachment B in order to conform with State Law. The only change being proposed which was not a result of SB1489 is located on page seven (7) of the investment policy which increases (from 25% to 30%) the percentage of the portfolio allowed to be invested in Federal Agency or Government Sponsored Entities. There are no limits in the California Government Code on the dollar amount or percentage that the City may invest in Federal Agency or GovernmentSponsored Enterprises (GSEs), provided that the maximum maturity does not exceed five years. Changing from 25% to 30% aligns Orinda’s Investment Policy with current industry practices.

The results of the review were shared and discussed by the FAC at their July 26, 2023, meeting. During that review, the FAC unanimously recommended presenting the redlined investment policy to the City Council for adoption.

Government Code Section 53607 only provides two options for authorizing the investment of public funds. It can be completed by either: 1) The City Council; or 2) Delegated for a one-year period to the City Treasurer. From a practical and logistical manner of conducting business it makes sense to delegate this function. Adoption of the proposed resolution will continue this practice.

Proposed Investment Policy
Attachment A contains the Resolution adopting the Investment Policy, which completes the Annual Review with minor proposed changes to the existing policy. The resolution also formally delegates the authorization to make investment decisions to the City Treasurer for a one-year period in accordance with the Government Code.

FISCAL IMPACT:

There are no immediate fiscal impacts as a result of reviewing the Investment Policy. It is anticipated that the policy will continue to provide investment options consistent with State law and appropriate for a public agency portfolio.

ATTACHMENTS:

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A. Resolution 50-23 Adoption of Investment Policy
B. Investment Policy Redlined Changes
Respectfully Submitted by:

Doug Alessio
Administrative Services Director
Prepared By: Doug Alessio, Administrative Services Director Approved by:

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BEFORE THE CITY COUNCIL OF THE CITY OF ORINDA
In the Matter of:

Annual Review of Investment Policy)
And Delegation of Authority ) Resolution No. 50-23
To Make Investments )
WHEREAS, the City Council on August 16, 2022, adopted Resolution 42-22 approving an Investment Policy which in accordance with State law provides for an annual review by the City Council; and
WHEREAS, the City Council has requested that the Finance Advisory Committee review and make recommendations on the policy; and
WHEREAS, the City has engaged Chandler Asset Management to provide professional investment services which include reviewing the policy for conformance with State laws and best practices; and
WHEREAS, at a meeting on July 26, 2023, the Finance Advisory Committee reviewed the Investment Policy and made the recommendation that minor policy changes resulting from SB1489 are required at this time; and
WHEREAS, Government Code section 53607 allows the City Council to annually delegate the authority to make investments to the City Treasurer as described in section IV of the policy.

NOW, THEREFORE, BE IT RESOLVED, that the City of Orinda City Council hereby adopts the Investment Policy attached hereto and by reference made a part hereof.

BE IT FURTHER RESOLVED, that the City Council hereby delegates the authority to make investments to the City Treasurer (Administrative Services Director) and Deputy Treasurer (City Manager).

Adopted by the City Council of the City of Orinda on August 15, 2023, by the following vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:
_______________________________ Inga Miller, Mayor
Sheri Marie Smith, City Clerk
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Attachment: Resolution 50-23 Adoption of Investment Policy (3187 : Annual Investment Policy Review And Authorize City Treasurer 2023)

CITY OF ORINDA, CALIFORNIA

INVESTMENT POLICY
ADOPTED – AUGUST 15, 2023 (RESOLUTION No.50-23)

CONTENTS
I. INTRODUCTION ........................................................................................... ...................1 II. SCOPE ..................................................................................................................... 1 III. OBJECTIVES .......................................................................................................................2 IV. DELEGATION OF AUTHORITY ...............................................................................................2 V. PRUDENCE ..............................................................................................................3 VI. ETHICS AND CONFLICTS OF INTEREST............................................................................. 4 VII. INTERNAL CONTROLS ···················································································4 VIII. AUTHORIZED FINANCIAL INSTITUTIONS, DEPOSITORIES, AND BROKER/DEALERS.. 4 IX. INVESTMENT POOLS/MUTUAL FUNDS ...................................................................................5 X. COLLATERALIZATION ....................................................................................................5 XI. DELIVERY, SAFEKEEPING AND CUSTODY .........................................................................6 XII. AUTHORIZED INVESTMENTS ................................................................................................6 XIII. MAXIMUM MATURITY..........................................................................................................11 XIV. PROHIBITED INVESTMENT VEHICLES AND PRACTICES ............. ............................... 11 XV. RISK MANAGEMENT AND DIVERSIFICATION ..................... .......................................... 12 XVI. REVIEW OF INVESTMENT PORTFOLIO ............................................................ 13 XVII. PERFORMANCE EVALUATION........................................ ...................................................13 XVIII. REPORTING ............................................................... ...............................................13 XIX. REVIEW OF INVESTMENT POLICY .....................................................................................14 GLOSSARY OF INVESTMENT TERMS ........................................………………….………………….15 F.2.a
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Attachment: Resolution 50-23 Adoption of Investment Policy (3187 : Annual Investment Policy Review And Authorize City Treasurer 2023) 1 I. INTRODUCTION
The City of Orinda was incorporated on July 1, 1985, and is located in the East Bay area within 20 minutes of downtown San Francisco. The City operates under a CouncilManager form of government and provides municipal services that include public safety, public works, parks and recreation, and community development. The City Council consists of five members with the position of Mayor and Vice Mayor chosen by the Council. The Council serves as the policy board for the City.

The City of Orinda has a fiduciary responsibility to maximize the productive use of assets entrusted to its care and to invest and manage those public funds wisely and prudently with the overriding objectives to preserve principal and provide sufficient liquidity while seeking a market-rate of return. The purpose of this investment policy is to identify various policies and procedures that will foster a prudent and systematic investment program designed to seek the City of Orinda's objectives of safety, liquidity and yield through a diversified investment portfolio. This policy also serves to organize and formalize the City's investment-related activities, while complying with all applicable statutes governing the investment of public funds.

II. SCOPE
This policy covers all funds and investment activities under the direct authority of the City, as set forth in the State Government Code, Sections 53600 et seq., with the following exceptions:
• Retirement Plans offered to City Employees including the 457 Deferred Compensation Plan, and 401(a) Defined Contribution Plan are excluded because the Plans are administered by a third-party administrator and held in trust for the exclusive benefit of participants and are not assets of the City. Individual plan participants select the investments from those offered under the Plans.
• Proceeds of debt issuance shall be invested in accordance with the City's general investment philosophy as set forth in this policy; however, such proceeds are to be invested pursuant to the permitted investment provisions of their specific bond indentures.
• Any other funds specifically exempted by the City Council.

POOLING OF FUNDS
Except for cash in certain restricted and special funds, the City will consolidate cash and reserve balances from all funds to maximize investment earnings and to increase efficiencies with regard to investment pricing, safekeeping and administration.

Investment income shall accrue solely to the General Fund except where required by law, or other binding agreement, in which case interest shall accrue to other funds based upon the fund's proportionate ratio of balances to total pooled cash. Investment income shall not be credited to individual reserve accounts, except where required by law. Investment income shall be credited no less than annually.

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Attachment: Resolution 50-23 Adoption of Investment Policy (3187 : Annual Investment Policy Review And Authorize City Treasurer 2023) 2 III. OBJECTIVES
The City's overall investment program shall be designed and managed with a degree of professionalism worthy of the public trust. The overriding objectives in order of priority shall be:
• SAFETY. Safety of principal is the foremost objective of the investment program.

Investments will be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio.
• LIQUIDITY. The investment portfolio will remain sufficiently liquid to meet all operating requirements that may be reasonably anticipated.
• YIELD. Yield should become a consideration only after the basic requirements of safety and liquidity have been met. The investment portfolio will be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the investment risk constraints for safety and liquidity needs.

IV. DELEGATION OF AUTHORITY
Authority to manage the City's investment program is derived from California Government Code, Sections 53600 et seq. The City Council is responsible for the policy level management of City funds, including the adoption and review of this investment policy.

The day-to-day management of idle cash and investment transactions is the responsibility of the Administrative Services Director/City Treasurer. The Administrative Services Director is designated as the City Treasurer, in accordance with a Resolution specifying the job description adopted by the City Council. As authorized in Government Code Section 53607, the City Council delegates the authority to invest funds of the City to the Administrative Services Director/City Treasurer and/or any duly appointed Deputy Treasurer. The City Treasurer and any duly appointed Deputy City Treasurer shall make all investment decisions and transactions in accordance with State law and this investment policy. The Administrative Services Director/City Treasurer has designated the City Manager as Deputy City Treasurer for the purpose of carrying out investment transactions, at such times as the Administrative Services Director/City Treasurer is unavailable.

The City shall strive to maintain the level of investment of all idle funds as near 100 percent as possible through daily and projected cash flow determinations. The City's cash management system should monitor and forecast revenues and expenditures, thus insuring the investment of monies to the fullest extent possible. The Administrative Services Director will be responsible for all transactions undertaken and will establish a system of procedures and controls to regulate the activities of subordinate employees.

Such procedures will include explicit delegation of authority to persons responsible for investment transactions. No person may engage in an investment transaction except as provided under the terms of this policy and procedures determined by the Administrative F.2.a
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Attachment: Resolution 50-23 Adoption of Investment Policy (3187 : Annual Investment Policy Review And Authorize City Treasurer 2023) 3 Services Director to be consistent with this policy.

The City Council may authorize engaging the services of one or more external investment advisers, who are registered under the Investment Advisers Act of 1940, to assist in the management of the City's investment portfolio in a manner consistent with the City's objectives. The selection process will follow standard City and industry practices for selecting a qualified firm to provide investment advisory services. The contract for such services must be reviewed and approved by the City Attorney. Under the review by the Administrative Services Director external investment advisers are granted discretion to purchase and sell investment securities in accordance with this investment policy. On February 15, 2015 the City Council authorized an agreement with Chandler Asset Management which serves as the external investment manager pursuant to this policy.

The contract was fully executed in May 2015 and the initial investment services focused on GO Bond proceeds. The Orinda Reserve portfolio management services began in February 2016.

The City's overall investment program shall be designed and managed with a degree of professionalism that is worthy of the public trust. The City intends to hold its investments to maturity in order to maximize its return on its investments and minimize its exposure to potential losses resulting from temporary declines in the market values of its investments.

However, if a decline in the market value of a security is deemed by the Administrative Services Director in consultation with the external Investment Manager, to be permanent, the security may be sold early to minimize the loss of principal. Although there may be opportunities to resell securities, this type of regular trading is not recommended.

V. PRUDENCE
Pursuant to California Government Code, Section 53600.3, all persons authorized to make investment decisions on behalf of the City are trustees and therefore fiduciaries subject to the Prudent Investor Standard:
"... all governing bodies of local agencies or persons authorized to make investment decisions on behalf of those local agencies investing public funds pursuant to this chapter are trustees and therefore fiduciaries subject to the prudent investor standard. When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the Agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the Agency. Within the limitations of this section and considering individual investments as part of an overall strategy, investments may be acquired as authorized by law."
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Attachment: Resolution 50-23 Adoption of Investment Policy (3187 : Annual Investment Policy Review And Authorize City Treasurer 2023) 4 VI. ETHICS AND CONFLICTS OF INTEREST
Employees and officials involved in the investment process shall at all times comply with each of the following:
- Recognize that the process is subject to public review - Act as a custodian of the public trust
- Recognize that their professional duties, loyalties, and responsibility are solely to the City
- Submit to the City statements of economic interest under the Political Reform Act (Government Code section 81000 et seq.)
- Not engage in any activity or have any interest that would result in a conflict of interest or the appearance of a conflict interest under the Political Reform Act, the common law, or Government Code section 1090 et seq.
- Not engage in any activity or have any interest that could interfere with unbiased involvement in the investment process (e.g., by impairing their ability to make impartial investment decisions).

VII. INTERNAL CONTROLS
The Administrative Services Director is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the entity are protected from loss, theft or misuse. The internal control structure shall be designed to provide reasonable assurance that these objectives are met. The concept of reasonable assurance recognizes that (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the valuation of costs and benefits requires estimates and judgments by management.

Periodically, as deemed appropriate by the City and/or the City Council, an independent analysis by an external auditor may be conducted to review internal controls, account activity and compliance with policies and procedures.

VIII. AUTHORIZED FINANCIAL INSTITUTIONS, DEPOSITORIES, AND BROKER/DEALERS EXTERNAL

INVESTMENT ADVISERS
Selection of broker/dealers used by an external investment adviser retained by the City will be at the sole discretion of the adviser. Where possible, transactions with broker/dealers shall be selected on a competitive basis and their bid or offering prices shall be recorded and presented as part of the information on the Trade Ticket. If there is no other readily available competitive offering, the investment adviser shall make their best efforts to document quotations for comparable or alternative securities. When purchasing original issue instrumentality securities, no competitive offerings will be required as all dealers in the selling group offer those securities as the same original issue price.

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Attachment: Resolution 50-23 Adoption of Investment Policy (3187 : Annual Investment Policy Review And Authorize City Treasurer 2023) 5 PROCESS IF CITY DOES NOT ENGAGE PROFESSIONAL EXTERNAL INVESTMENT ADVISOR If the City Administrative Services Director is directly completing investment transactions without an external investment adviser, to the extent practical, the Administrative Services Director shall endeavor to complete investment transactions using a competitive bid process whenever possible. The City's Administrative Services Director will determine which financial institutions are authorized to provide investment services to the City. It shall be the City's policy to purchase securities only from authorized institutions and firms.

The Administrative Services Director shall maintain procedures for the establishing a list of authorized broker/dealers and financial institutions which are approved for investment purposes that are selected through a process of due diligence determined by the City.

These institutions may include "primary" dealers or regional dealers that qualify under Securities and Exchange Commission (SEC) Rule 15c3-1 (uniform net capital rule).

Institutions eligible to transact investment business with the City include:
• Primary government dealers as designated by the Federal Reserve Bank of New York and non-primary government dealers.
• Nationally or state-chartered banks.
• The Federal Reserve Bank of New York.
• Direct issuers of securities eligible for purchase.

All financial institutions which desire to become qualified bidders for investment transactions (and which are not dealing only with the investment adviser) must supply the Administrative Services Director with a statement certifying that the institution has reviewed the California Government Code, Section 53600 et seq. and the City's investment policy.

Public deposits will be made only in qualified public depositories as established by State law. Deposits will be insured by the Federal Deposit Insurance Corporation, or, to the extent the amount exceeds the insured maximum, will be collateralized in accordance with State law.

IX. INVESTMENT POOLS/MUTUAL FUNDS
Participation in the Local Agency Investment Fund (LAIF) managed by the State Treasurer shall be an authorized investment under this policy. Participation in any other pool or mutual fund shall require approval of the City Council upon investigation of the investment pool/mutual fund legal structure, objectives, and suitability as a component of the City portfolio.

X. COLLATERALIZATION
CERTIFICATES OF DEPOSIT (CDS). The City shall limit the value of investments in CD's held by a single institution to the maximum insured value by the FDIC.

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Attachment: Resolution 50-23 Adoption of Investment Policy (3187 : Annual Investment Policy Review And Authorize City Treasurer 2023) 6 COLLATERALIZATION OF DEPOSITS. Process by which a bank or financial institution pledges securities, or other deposits for the purpose of securing the repayment of deposited funds.

The type and value of eligible securities is as defined by California Government Code, Section 53651.

XI. DELIVERY, SAFEKEEPING AND CUSTODY
DELIVERY-VERSUS-PAYMENT (DVP). Settlement of all investment transactions will be completed using standard delivery-versus-payment procedures.

SAFEKEEPING AND CUSTODY. To protect against potential losses due to failure of individual securities dealers, and to enhance access to securities, interest payments and maturity proceeds, all cash and securities in the City's portfolio shall be held in safekeeping in the City's name by a third party custodian, acting as agent for the City under the terms of a custody agreement executed by the bank and the City. All investment transactions will require a safekeeping receipt or acknowledgment generated from the trade. The custodian shall provide a monthly report to the City listing all securities held in safekeeping with current market data and other information. The Administrative Services Director shall implement procedures to review and reconcile the custodian statements on a regular basis.

The only exceptions to the foregoing shall be depository accounts and securities purchases made with: (i) local government investment pools; (ii) time certificates of deposit, and, (iii) mutual funds and money market mutual funds, since the purchased securities are not deliverable.

XII. AUTHORIZED INVESTMENTS
The City's investments are governed by California Government Code, Sections 53600 et seq. The City intends for the investments permitted by this policy to be more restrictive than what is authorized in the Government Code. In the event a discrepancy is found between this policy and the Code, the more restrictive parameters will take precedence.

Percentage holding limits and credit rating minimums listed in this section apply at the time the security is purchased.

Any investment held at the time the policy is adopted which does not meet the new policy guidelines can be held until maturity, provided it is disclosed as an exception at each reporting period. At the time of the investment's maturity or liquidation, such funds shall be reinvested only as provided in the current policy.

An appropriate risk level shall be maintained by primarily purchasing securities that are of high quality, liquid, and marketable. The portfolio shall be diversified by security type and institution to avoid incurring unreasonable and avoidable risks regarding specific security types or individual financial institutions.

1. MUNICIPAL SECURITIES include obligations of the City, the State of California, and any local agency within the State of California, provided that the following criteria F.2.a
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Attachment: Resolution 50-23 Adoption of Investment Policy (3187 : Annual Investment Policy Review And Authorize City Treasurer 2023) 7 is met:
• The securities are rated in a rating category of "A" or its equivalent or better by at least one nationally recognized statistical rating organization (“NRSRO”).
• No more than 5% of the portfolio may be invested in any issuer. • No more than 30% of the portfolio may be in Municipal Securities. • The maximum maturity does not exceed five years.

2. MUNICIPAL SECURITIES (REGISTERED TREASURY NOTES OR BONDS) of any of the other 49 states in addition to California, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by a state or by a department, board, agency, or authority of any of the other 49 states, in addition to California.
• The securities are rated in a rating category of "A" or its equivalent or better by at least one NRSRO.
• No more than 5% of the portfolio may be invested in any single issuer.

No more than 30% of the portfolio may be in Municipal Securities. • The maximum maturity does not exceed five years.

3. U.S. TREASURIES and other government obligations for which the full faith and credit of the United States are pledged for the payment of principal and interest. There are no limits on the dollar amount or percentage that the City may invest in U.S.

Treasuries, provided that the following criteria is met:
• The maximum maturity is five years.

4. FEDERAL AGENCIES or United States Government-Sponsored Enterprise obligations, participations, or other instruments, including those issued by or fully guaranteed as to principal and interest by federal agencies or United States government-sponsored enterprises. There are no limits on the dollar amount or percentage that the City may invest in Federal Agency or GovernmentSponsored Enterprises (GSEs), provided that the following criteria is met:
• No more than 30% of the portfolio may be invested in any Agency/GSE issuer.

The maximum maturity does not exceed five years.
• The maximum percentage of callable agency securities in the portfolio is 20%.

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Attachment: Resolution 50-23 Adoption of Investment Policy (3187 : Annual Investment Policy Review And Authorize City Treasurer 2023) 8 • No more than 40% of the portfolio may be invested in Bankers' Acceptances. No more than 5% of the portfolio may be invested in any issuer. • The maximum maturity does not exceed 180 days.

6. FEDERALLY INSURED TIME DEPOSITS (Non-Negotiable Certificates of Deposit) in state or federally chartered banks, savings and loans, or credit unions, provided that the following criteria is met:
• The amount per institution is limited to the maximum covered under Federal Deposit Insurance Corporation or the National Credit Union Administration. • No more than 20% of the portfolio will be invested in a combination of federally insured and collateralized time deposits.
• The maximum maturity does not exceed five years.

7. COLLATERALIZED TIME DEPOSITS (Non-Negotiable Certificates of Deposit) in state or federally chartered banks, savings and loans, or credit unions in excess of insured amounts which are fully collateralized with securities in accordance with California law, provided that the following criteria is met:
• No more than 20% of the portfolio will be invested in a combination of federally insured and collateralized time deposits.
• The maximum maturity does not exceed five years.

8. CERTIFICATE OF DEPOSIT PLACEMENT SERVICE (CDARS), provided that the following criteria is met and as allowed under California Government Code section 53601.8:
• No more than 30% of the total portfolio may be invested in a combination of Certificates of Deposit, including those transactions using a placement service. • The maximum maturity does not exceed five years.

9. NEGOTIABLE CERTIFICATES OF DEPOSIT (NCDS), provided that the following criteria is met:
• The amount of the NCD insured up to the FDIC limit does not require any credit ratings.
• For any amount above the FDIC insured limit they must be issued by institutions which have short-term debt obligations are rated "A-1" or its equivalent or better by at least one NRSRO; or long-term obligations are rated in the "A" category or its equivalent or better by at least one NRSRO.
• No more than 30% of the total portfolio may be invested in NCDs. No more than 5% of the portfolio may be invested in any issuer. The maximum maturity does not exceed five years.

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Attachment: Resolution 50-23 Adoption of Investment Policy (3187 : Annual Investment Policy Review And Authorize City Treasurer 2023) 9 10. COLLATERALIZED DEPOSITS. The City's deposits with financial institutions will be collateralized with pledged securities per California Government Code, Section 53651 and a maximum maturity not exceeding five years.

11. COMMERCIAL PAPER, provided that the following criteria is met:
a. If issued by a corporation:

1. The issuer is a corporation organized and operating in the United States with assets in excess of $500 million.

2. They are issued by corporations which have long-term obligations rated in the "A" category or its equivalent or better, if the issuer has long-term ratings, by at least one NRSRO.
b. If issued by other entities:

1. The issuer is organized within the United States as a special purpose corporation, trust, or limited liability company.

2. The securities must have program-wide credit enhancements including, but not limited to, overcollateralization, letters of credit or a surety bond. • The securities are rated "A-1" or its equivalent or better by at least one NRSRO. • No more than 25% of the portfolio may be invested in Commercial Paper. • No more than 10% of the outstanding commercial paper issued by any single issuer.
• No more than 5% of the portfolio may be invested in any issuer. • The maximum maturity does not exceed 270 days.

12. STATE OF CALIFORNIA LOCAL AGENCY INVESTMENT FUND (LAIF), provided that the following criteria is met:
• The City may invest subject to the maximum permitted balance established by LAIF.

13. LOCAL GOVERNMENT INVESTMENT POOLS
• Other LGIPs are permitted provided that the City Council takes a separate action to authorize the LGIP and it is added to this policy.

14. CORPORATE MEDIUM TERM NOTES (MTNS), provided that the following criteria is met:
• The issuer is a corporation organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States.
• The securities are rated in the "A" category or its equivalent or better by at least one NRSRO.
• No more than 30% of the total portfolio may be invested in MTNs. No more than F.2.a
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Attachment: Resolution 50-23 Adoption of Investment Policy (3187 : Annual Investment Policy Review And Authorize City Treasurer 2023) 10 5% of the portfolio may be invested in any one issuer. The maximum maturity does not exceed five years.

15. ASSET-BACKED, MORTGAGE-BACKED, MORTGAGE PASS-THROUGH SECURITIES, AND COLLATERALIZED MORTGAGE OBLIGATIONS, provided that the following criteria is met:
• The securities are rated in the "AA" category or the equivalent or better by a NRSRO.
• No more than 20% of the total portfolio may be invested in these securities. • No more than 5% of the portfolio may be invested in any Asset-Backed or Commercial Mortgage security issuer. There is no issuer limitation on any Mortgage security where the issuer is the US Treasury or a Federal Agency/GSE. • The maximum maturity does not exceed 5 years.

16. MUTUAL FUNDS AND MONEY MARKET MUTUAL FUNDS that are registered with the Securities and Exchange Commission under the Investment Company Act of 1940, provided that the following criteria is met:
a. No more than 20% of the total portfolio may be invested in these securities. b. MUTUAL FUNDS that invest in the securities and obligations as authorized under California Government Code, Section 53601 (a) to (k) and (m) to (q) inclusive and that meet either of the following criteria:

1. Attained the highest ranking or the highest letter and numerical rating provided by not less than two (2) NRSROs; or

2. Have retained an investment adviser registered or exempt from registration with the Securities and Exchange Commission with not less than five years' experience investing in the securities and obligations authorized by California Government Code, Section 53601 and with assets under management in excess of $500 million.

3. No more than 10% of the total portfolio may be invested in shares of any one mutual fund.
c. MONEY MARKET MUTUAL FUNDS Shares of beneficial interest issued by diversified management companies that are money market funds registered with the Securities and Exchange Commission under the Investment Company Act of 1940 (15 U.S.C. Sec. 80a-1 et seq.) The company shall meet either of the following criteria:

1. Have attained the highest ranking or the highest letter and numerical rating provided by not less than two (2) NRSROs; or

2. Have retained an investment adviser registered or exempt from registration with the Securities and Exchange Commission with not less than five years' experience managing money market mutual funds with assets under management in excess of $500 million.

3. No more than 20% of the total portfolio may be invested in Money Market Mutual Funds.

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Attachment: Resolution 50-23 Adoption of Investment Policy (3187 : Annual Investment Policy Review And Authorize City Treasurer 2023) 11 17. SUPRANATIONALS, provided that the following criteria is met:
• The issue purchased shall be U.S. 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.
• Issues are "eligible for purchase and sale within the United States." • The securities are rated in the "AA" category or its equivalent or better by a NRSRO.
• No more than 30% of the total portfolio may be invested in these securities. • No more than 10% of the portfolio per issuer
• The maximum maturity does not exceed five years.

XIII. MAXIMUM MATURITY
To the extent possible, the overall portfolio and investments shall take into consideration anticipated cash flow requirements and known future liabilities.

The City will not invest in securities maturing more than five years from the date of trade settlement, unless the City Council has by resolution granted authority to make such an investment at least three months prior to that investment.

XIV. PROHIBITED INVESTMENT VEHICLES AND PRACTICES
• State law notwithstanding, any investments not specifically described herein are prohibited, including, but not limited to futures and options. • In accordance with Government Code, Section 53601.6, investment in inverse floaters, range notes, or mortgage derived interest-only strips is prohibited. • Investment in any security that could result in a zero interest accrual if held to maturity is prohibited.
• Trading securities for the sole purpose of speculating on the future direction of interest rates is prohibited.
• Purchasing or selling securities on margin is prohibited. • The use of repurchase agreements and reverse repurchase agreements, securities lending or any other form of borrowing or leverage is prohibited. • The purchase of foreign currency denominated securities is prohibited. • The purchase of a security with a forward settlement date exceeding 45 days from the time of the investment is prohibited.

XV. RISK MANAGEMENT AND DIVERSIFICATION
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Attachment: Resolution 50-23 Adoption of Investment Policy (3187 : Annual Investment Policy Review And Authorize City Treasurer 2023) 12 MITIGATING CREDIT RISK IN THE PORTFOLIO
Credit risk is the risk that a security or a portfolio will lose some or all of its value due to a real or perceived change in the ability of the issuer to repay its debt. The City will mitigate credit risk by adopting the following strategies:
• The diversification requirements included in the "Authorized Investments" section of this policy are designed to mitigate credit risk in the portfolio. • No more than 5% of the total portfolio may be invested in securities of any single issuer per each category in Section XII of this policy, except where the issuer is the U.S. Government, its Agencies and GSEs, or Supranationals, or where the security is Money Market Mutual Funds or Local Government Investment Pools, or where otherwise specified in this investment policy.
• The City may elect to sell a security prior to its maturity and record a capital gain or loss in order to improve the quality, liquidity or yield of the portfolio in response to market conditions or the City's risk preferences.
• If securities owned by the City are downgraded by a NRSRO to a level below the quality required by this investment policy, it will be the City's policy to review the credit situation and make a determination as to whether to sell or retain such securities in the portfolio.
• If a security is downgraded, the Administrative Services Director/ City Treasurer will use discretion in determining whether to sell or hold the security based on its current maturity, the economic outlook for the issuer, and other relevant factors. Downgraded securities will be reported to the City Council in the quarterly investment report.
• If a decision is made to retain a downgraded security in the portfolio, its presence in the portfolio will be monitored and reported monthly to the City Council.

MITIGATING INTEREST RATE RISK IN THE PORTFOLIO
Market risk includes the risk that the portfolio value will fluctuate due to changes in the general level of interest rates. The City recognizes that, over time, longer-term portfolios have the potential to achieve higher returns. On the other hand, longer-term portfolios have higher volatility of return. The City will mitigate market risk by providing adequate liquidity for short-term cash needs, and by making longer-term investments only with funds that are not needed for current cash flow purposes.

The City further recognizes that certain types of securities, including variable rate securities, securities with principal pay downs prior to maturity, and securities with embedded options, will affect the market risk profile of the portfolio differently in different interest rate environments. The City, therefore, adopts the following strategies to control and mitigate its exposure to market risk:

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Attachment: Resolution 50-23 Adoption of Investment Policy (3187 : Annual Investment Policy Review And Authorize City Treasurer 2023) 13 • The City will maintain a minimum of six months of budgeted operating expenditures in short term investments to provide sufficient liquidity for expected disbursements. • The maximum stated final maturity of individual securities in the portfolio will be five years, except as otherwise stated in this policy.
• The duration of the portfolio will strive at all times be approximately equal to the duration (typically, plus or minus 20%) of a market benchmark, an index selected by the City based on the City's investment objectives, constraints and risk tolerances.

XVI. REVIEW OF INVESTMENT PORTFOLIO
The Administrative Services Director shall periodically, but no less than quarterly, review the portfolio to identify investments that do not comply with this investment policy and establish protocols for reporting major and critical incidences of noncompliance to the City Council. The compliance status shall be reported as part of the quarterly reporting.

XVII. PERFORMANCE EVALUATION
The investment portfolio shall be designed to attain a rate of return consistent with the overriding objectives of the program to preserve principal and provide sufficient liquidity.

The investment portfolio shall take into account the City's risk constraints, the cash flow characteristics of the portfolio, and state and local laws, ordinances or resolutions that restrict investments.

The Administrative Services Director shall monitor and evaluate the portfolio's performance relative to market benchmark, which will be included in the Administrative Services Director's quarterly report. The Administrative Services Director in consultation with the external investment adviser, shall select an appropriate readily available index to use as a market benchmark.

XVIII. REPORTING

QUARTERLY REPORTS
Quarterly investment reports will be submitted by the Administrative Services Director to the City Council. These reports will disclose, at a minimum, the following information about the characteristics of the City's portfolio in order to comply with GC 53646 (b):

1. These reports shall include the type of investment, issuer, date of maturity, par and dollar amount invested on all securities, investments and moneys held by the City, and shall additionally include a description of any of the City's funds, investments, or programs, that are under the management of contracted parties, including lending programs. With respect to all securities held by the City, and under management of any outside party that is not also a local public agency or the State of California Local Agency Investment Fund, the report shall also include a current market value as of the date of the report, and shall include the source of this same valuation.

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Attachment: Resolution 50-23 Adoption of Investment Policy (3187 : Annual Investment Policy Review And Authorize City Treasurer 2023) 14 2. Monthly transactions for the period in accordance with California Government Code Section 53607.

3. A statement of compliance with investment policy, including a schedule of any transactions or holdings which do not comply with this policy or with the California Government Code, including a justification for their presence in the portfolio and a timetable for resolution. Although this policy measures compliance at the time of purchase, any transactions or holdings that were in compliance at the time of purchase, and no longer comply shall also be disclosed and reviewed by the Treasurer.

4. A statement regarding whether the portfolio will allow the City to have adequate funds to meet its cash flow requirements for the next six months.

XIX. REVIEW OF INVESTMENT POLICY
The investment policy will be reviewed at least annually by the Finance Advisory Committee, which shall make a recommendation to the City Council regarding any recommended changes to address consistency with the overall objectives of preservation of principal, liquidity and return, and its relevance to current law and financial and economic trends.

The results of the review including any recommended modifications, amendments, and delegation of authority as described in Section IV, shall be presented by the Administrative Services Director/City Treasurer to the City Council for their consideration and adoption at a public meeting. For consistency it is recommended that the review be timed to occur no later than June 30th at the same time as the Annual Appropriations Limit Adoption.

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Attachment: Resolution 50-23 Adoption of Investment Policy (3187 : Annual Investment Policy Review And Authorize City Treasurer 2023) 15 GLOSSARY OF INVESTMENT TERMS
Glossary of Investment Terms
AGENCIES. Shorthand market terminology for any obligation issued by a government-sponsored entity (GSE), or a federally related institution. Most obligations of GSEs are not guaranteed by the full faith and credit of the US government. Examples are:

FFCB. The Federal Farm Credit Bank System provides credit and liquidity in the agricultural industry. FFCB issues discount notes and bonds.

FHLB. The Federal Home Loan Bank provides credit and liquidity in the housing market.

FHLB issues discount notes and bonds.

FHLMC. Like FHLB, the Federal Home Loan Mortgage Corporation provides credit and liquidity in the housing market. FHLMC, also called “FreddieMac” issues discount notes, bonds and mortgage pass-through securities.

FNMA. Like FHLB and FreddieMac, the Federal National Mortgage Association was established to provide credit and liquidity in the housing market. FNMA, also known as “FannieMae,” issues discount notes, bonds and mortgage pass-through securities.

GNMA. The Government National Mortgage Association, known as “GinnieMae,” issues mortgage pass-through securities, which are guaranteed by the full faith and credit of the US Government.

PEFCO. The Private Export Funding Corporation assists exporters. Obligations of PEFCO are not guaranteed by the full faith and credit of the US government.

TVA. The Tennessee Valley Authority provides flood control and power and promotes development in portions of the Tennessee, Ohio, and Mississippi River valleys. TVA currently issues discount notes and bonds.

ASSET BACKED SECURITIES. Securities supported by pools of installment loans or leases or by pools of revolving lines of credit.

AVERAGE LIFE. In mortgage-related investments, including CMOs, the average time to expected receipt of principal payments, weighted by the amount of principal expected.

BANKER’S ACCEPTANCE. A money market instrument created to facilitate international trade transactions. It is highly liquid and safe because the risk of the trade transaction is transferred to the bank which “accepts” the obligation to pay the investor.

BENCHMARK. A comparison security or portfolio. A performance benchmark is a partial market index, which reflects the mix of securities allowed under a specific investment policy.

BROKER. A broker brings buyers and sellers together for a transaction for which the broker receives a commission. A broker does not sell securities from their own position.

CALLABLE. A callable security gives the issuer the option to call it from the investor prior to its maturity. The main cause of a call is a decline in interest rates. If interest rates decline, the issuer will likely call its current securities and reissue them at a lower rate of interest.

CERTIFICATE OF DEPOSIT (CD). A time deposit with a specific maturity evidenced by a certificate.

CERTIFICATE OF DEPOSIT ACCOUNT REGISTRY SYSTEM (CDARS). A private placement service that allows local agencies to purchase more than $250,000 in CDs from a single financial institution (must be a participating institution of CDARS) while still maintaining FDIC insurance coverage. CDARS is currently the only entity providing this service. CDARS facilitates the trading of deposits between the California institution and other participating institutions in amounts that are less than $250,000 each, so that FDIC coverage is maintained.

COLLATERAL. Securities or cash pledged by a borrower to secure repayment of a loan or repurchase agreement. Also, securities pledged by a financial institution to secure deposits of public monies.

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Attachment: Resolution 50-23 Adoption of Investment Policy (3187 : Annual Investment Policy Review And Authorize City Treasurer 2023) 16 COLLATERALIZED BANK DEPOSIT. A bank deposit that is collateralized at least 100% (principal plus interest to maturity). The deposit is collateralized using assets set aside by the issuer such as Treasury securities or other qualified collateral to secure the deposit in excess of the limit covered by the Federal Deposit Insurance Corporation.

COLLATERALIZED MORTGAGE OBLIGATIONS (CMO). Classes of bonds that redistribute the cash flows of mortgage securities (and whole loans) to create securities that have different levels of prepayment risk, as compared to the underlying mortgage securities.

COLLATERALIZED TIME DEPOSIT. Time deposits that are collateralized at least 100% (principal plus interest to maturity). These instruments are collateralized using assets set aside by the issuer such as Treasury securities or other qualified collateral to secure the deposit in excess of the limit covered by the Federal Deposit Insurance Corporation.

COMMERCIAL PAPER. The short-term unsecured debt of corporations.

COUPON. The rate of return at which interest is paid on a bond.

CREDIT RISK. The risk that principal and/or interest on an investment will not be paid in a timely manner due to changes in the condition of the issuer.

DEALER. A dealer acts as a principal in security transactions, selling securities from and buying securities for their own position.

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

DELIVERY VS. PAYMENT (DVP). A securities industry procedure whereby payment for a security must be made at the time the security is delivered to the purchaser’s agent.

DERIVATIVE. Any security that has principal and/or interest payments which are subject to uncertainty (but not for reasons of default or credit risk) as to timing and/or amount, or any security which represents a component of another security which has been separated from other components (“Stripped” coupons and principal). A derivative is also defined as a financial instrument the value of which is totally or partially derived from the value of another instrument, interest rate, or index.

DISCOUNT. The difference between the par value of a bond and the cost of the bond, when the cost is below par. Some short-term securities, such as T-bills and banker’s acceptances, are known as discount securities. They sell at a discount from par and return the par value to the investor at maturity without additional interest. Other securities, which have fixed coupons, trade at a discount when the coupon rate is lower than the current market rate for securities of that maturity and/or quality.

DIVERSIFICATION. Dividing investment funds among a variety of investments to avoid excessive exposure to any one source of risk.

DURATION. The weighted average time to maturity of a bond where the weights are the present values of the future cash flows. Duration measures the price sensitivity of a security to changes interest rates.

FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC). The Federal Deposit Insurance Corporation (FDIC) is an independent federal agency insuring deposits in U.S. banks and thrifts in the event of bank failures. The FDIC was created in 1933 to maintain public confidence and encourage stability in the financial system through the promotion of sound banking practices.

FEDERALLY INSURED TIME DEPOSIT. A time deposit is an interest-bearing bank deposit account that has a specified date of maturity, such as a certificate of deposit (CD). These deposits are limited to funds insured in accordance with FDIC insurance deposit limits.

LEVERAGE. Borrowing funds in order to invest in securities that have the potential to pay earnings at a rate higher than the cost of borrowing.

LIQUIDITY. The speed and ease with which an asset can be converted to cash.

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

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Attachment: Resolution 50-23 Adoption of Investment Policy (3187 : Annual Investment Policy Review And Authorize City Treasurer 2023) 17 LOCAL GOVERNMENT INVESTMENT POOL. Investment pools that range from the State Treasurer’s Office Local Agency Investment Fund (LAIF) to county pools, to Joint Powers Authorities (JPAs). These funds are not subject to the same SEC rules applicable to money market mutual funds.

MAKE WHOLE CALL. A type of call provision on a bond that allows the issuer to pay off the remaining debt early. Unlike a call option, with a make whole call provision, the issuer makes a lump sum payment that equals the net present value (NPV) of future coupon payments that will not be paid because of the call. With this type of call, an investor is compensated, or "made whole."
MARGIN. The difference between the market value of a security and the loan a broker makes using that security as collateral.

MARKET RISK. The risk that the value of securities will fluctuate with changes in overall market conditions or interest rates.

MARKET VALUE. The price at which a security can be traded.

MATURITY. The final date upon which the principal of a security becomes due and payable. The investment’s term or remaining maturity is measured from the settlement date to final maturity.

MEDIUM TERM NOTES. Unsecured, investment-grade senior debt securities of major corporations which are sold in relatively small amounts on either a continuous or an intermittent basis.

MTNs are highly flexible debt instruments that can be structured to respond to market opportunities or to investor preferences.

MODIFIED DURATION. The percent change in price for a 100-basis point change in yields. Modified duration is the best single measure of a portfolio’s or security’s exposure to market risk.

MONEY MARKET. The market in which short-term debt instruments (T-bills, discount notes, commercial paper, and banker’s acceptances) are issued and traded.

MONEY MARKET MUTUAL FUND. A mutual fund that invests exclusively in short-term securities.

Examples of investments in money market funds are certificates of deposit and U.S.

Treasury securities. Money market funds attempt to keep their net asset values at $1 per share.

MORTGAGE PASS-THROUGH SECURITIES. A securitized participation in the interest and principal cash flows from a specified pool of mortgages. Principal and interest payments made on the mortgages are passed through to the holder of the security.

MUNICIPAL SECURITIES. Securities issued by state and local agencies to finance capital and operating expenses.

MUTUAL FUND. An entity which pools the funds of investors and invests those funds in a set of securities which is specifically defined in the fund’s prospectus. Mutual funds can be invested in various types of domestic and/or international stocks, bonds, and money market instruments, as set forth in the individual fund’s prospectus. For most large, institutional investors, the costs associated with investing in mutual funds are higher than the investor can obtain through an individually managed portfolio.

NATIONALLY RECOGNIZED STATISTICAL RATING ORGANIZATION (NRSRO). A credit rating agency that the Securities and Exchange Commission in the United States uses for regulatory purposes. Credit rating agencies provide assessments of an investment's risk. The issuers of investments, especially debt securities, pay credit rating agencies to provide them with ratings. The three most prominent NRSROs are Fitch, S&P, and Moody's.

NEGOTIABLE CERTIFICATE OF DEPOSIT (CD). A short-term debt instrument that pays interest and is issued by a bank, savings or federal association, state or federal credit union, or statelicensed branch of a foreign bank. Negotiable CDs are traded in a secondary market.

PRIMARY DEALER. A financial institution (1) that is a trading counterparty with the Federal Reserve in its execution of market operations to carry out U.S. monetary policy, and (2) that participates for statistical reporting purposes in compiling data on activity in the U.S.

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Attachment: Resolution 50-23 Adoption of Investment Policy (3187 : Annual Investment Policy Review And Authorize City Treasurer 2023) 18 Government securities market.

PRUDENT PERSON (PRUDENT INVESTOR) RULE. A standard of responsibility which applies to fiduciaries. In California, the rule is stated as “Investments shall be managed with the care, skill, prudence and diligence, under the circumstances then prevailing, that a prudent person, acting in a like capacity and familiar with such matters, would use in the conduct of an enterprise of like character and with like aims to accomplish similar purposes.” REPURCHASE AGREEMENT. Short-term purchases of securities with a simultaneous agreement to sell the securities back at a higher price. From the seller’s point of view, the same transaction is a reverse repurchase agreement.

SAFEKEEPING. A service to bank customers whereby securities are held by the bank in the customer’s name.

SECURITIES AND EXCHANGE COMMISSION (SEC). The U.S. Securities and Exchange Commission (SEC) is an independent federal government agency responsible for protecting investors, maintaining fair and orderly functioning of securities markets and facilitating capital formation. It was created by Congress in 1934 as the first federal regulator of securities markets. The SEC promotes full public disclosure, protects investors against fraudulent and manipulative practices in the market, and monitors corporate takeover actions in the United States.

SECURITIES AND EXCHANGE COMMISSION SEC) RULE 15C3-1. An SEC rule setting capital requirements for brokers and dealers. Under Rule 15c3-1, a broker or dealer must have sufficient liquidity in order to cover the most pressing obligations. This is defined as having a certain amount of liquidity as a percentage of the broker/dealer's total obligations. If the percentage falls below a certain point, the broker or dealer may not be allowed to take on new clients and may have restrictions placed on dealings with current client.

STRUCTURED NOTE. A complex, fixed income instrument, which pays interest, based on a formula tied to other interest rates, commodities or indices. Examples include inverse floating rate notes which have coupons that increase when other interest rates are falling, and which fall when other interest rates are rising, and "dual index floaters," which pay interest based on the relationship between two other interest rates - for example, the yield on the ten-year Treasury note minus the Libor rate. Issuers of such notes lock in a reduced cost of borrowing by purchasing interest rate swap agreements.

SUPRANATIONAL. A Supranational is a multi-national organization whereby member states transcend national boundaries or interests to share in the decision making to promote economic development in the member countries.

TOTAL RATE OF RETURN. A measure of a portfolio’s performance over time. It is the internal rate of return, which equates the beginning value of the portfolio with the ending value; it includes interest earnings, realized and unrealized gains, and losses in the portfolio.

U.S. TREASURY OBLIGATIONS. Securities issued by the U.S. Treasury and backed by the full faith and credit of the United States. Treasuries are considered to have no credit risk and are the benchmark for interest rates on all other securities in the US and overseas. The Treasury issues both discounted securities and fixed coupon notes and bonds.

TREASURY BILLS. All securities issued with initial maturities of one year or less are issued as discounted instruments and are called Treasury bills. The Treasury currently issues threeand six-month T-bills at regular weekly auctions. It also issues “cash management” bills as needed to smooth out cash flows.

TREASURY NOTES. All securities issued with initial maturities of two to ten years are called Treasury notes and pay interest semi-annually.

TREASURY BONDS. All securities issued with initial maturities greater than ten years are called Treasury bonds. Like Treasury notes, they pay interest semi-annually.

YIELD TO MATURITY. The annualized internal rate of return on an investment which equates the expected cash flows from the investment to its cost.

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Attachment: Resolution 50-23 Adoption of Investment Policy (3187 : Annual Investment Policy Review And Authorize City Treasurer 2023)

CITY OF ORINDA, CALIFORNIA

INVESTMENT POLICY
ADOPTED – AUGUST 16, 2022 (RESOLUTION No.42-22)

CONTENTS
I. INTRODUCTION ........................................................................................... ................... 1 II. SCOPE ................................................................................... .................................. 1 III. OBJECTIVES .................................... ................................................................................... 2 IV. DELEGATION OF AUTHORITY ................................................................... ............................ 2 V. PRUDENCE ...................................................................................... ........................ 3 VI. ETHICS AND CONFLICTS OF INTEREST ......................... ................................................... 4 VII. INTERNAL CONTROLS ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ4 VIII. AUTHORIZED FINANCIAL INSTITUTIONS, DEPOSITORIES, AND BROKER/DEALERS . 4 IX. INVESTMENT POOLS/MUTUAL FUNDS ....................................................................................5 X. COLLATERALIZATION .................................................................................................. 65 XI. DELIVERY, SAFEKEEPING AND CUSTODY .......................................................... ............... 6 XII. AUTHORIZED INVESTMENTS ........................................................................ ........................ 6 XIII. MAXIMUM MATURITY .......................................................................................................... 11 XIV. PROHIBITED INVESTMENT VEHICLES AND PRACTICES ............. ............................... 11 XV. RISK MANAGEMENT AND DIVERSIFICATION ..................... ........................................ 112 XVI. REVIEW OF INVESTMENT PORTFOLIO ............................................................ 123 XVII. PERFORMANCE EVALUATION ........................................ ................................................... 13 XVIII. REPORTING ............................................................... ............................................... 13 XIX. REVIEW OF INVESTMENT POLICY ..................................................................... ................ 14 GLOSSARY OF INVESTMENT TERMS ........................................………………….………………….15 F.2.b
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Attachment: Investment Policy Redlined Changes (3187 : Annual Investment Policy Review And Authorize City Treasurer 2023) 1 I. INTRODUCTION
The City of Orinda was incorporated on July 1, 1985 and is located in the East Bay area within 20 minutes of downtown San Francisco. The City operates under a CouncilManager form of government and provides municipal services that include public safety, public works, parks and recreation, and community development. The City Council consists of five members with the position of Mayor and Vice Mayor chosen by the Council. The Council serves as the policy board for the City.

II. SCOPE
This policy covers all funds and investment activities under the direct authority of the City, as set forth in the State Government Code, Sections 53600 et seq., with the following exceptions:
• Retirement Plans offered to City Employees including the 457 Deferred Compensation Plan, and 401(a) Defined Contribution Plan are excluded because the Plans are administered by a third party administrator and held in trust for the exclusive benefit of participants and are not assets of the City. Individual plan participants select the investments from those offered under the Plans.
• Proceeds of debt issuance shall be invested in accordance with the City's general investment philosophy as set forth in this policy; however, such proceeds are to be invested pursuant to the permitted investment provisions of their specific bond indentures.
• Any other funds specifically exempted by the City Council.

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Attachment: Investment Policy Redlined Changes (3187 : Annual Investment Policy Review And Authorize City Treasurer 2023) 2 III. OBJECTIVES
The City's overall investment program shall be designed and managed with a degree of professionalism worthy of the public trust. The overriding objectives in order of priority shall be:
• SAFETY. Safety of principal is the foremost objective of the investment program.

Such procedures will include explicit delegation of authority to persons responsible for investment transactions. No person may engage in an investment transaction except as provided under the terms of this policy and procedures determined by the Administrative F.2.b
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Attachment: Investment Policy Redlined Changes (3187 : Annual Investment Policy Review And Authorize City Treasurer 2023) 3 Services Director to be consistent with this policy.

The contract was fully executed in May 2015 and the initial investment services focused on GO Bond proceeds. The Orinda Reserve portfolio management services began in February 2016.

V. PRUDENCE
Pursuant to California Government Code, Section 53600.3, all persons authorized to make investment decisions on behalf of the City are trustees and therefore fiduciaries subject to the Prudent Investor Standard:
"... all governing bodies of local agencies or persons authorized to make investment decisions on behalf of those local agencies investing public funds pursuant to this chapter are trustees and therefore fiduciaries subject to the prudent investor standard. When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the Agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the Agency. Within the limitations of this section and considering individual investments as part of an overall strategy, investments may be acquired as authorized by law."
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Attachment: Investment Policy Redlined Changes (3187 : Annual Investment Policy Review And Authorize City Treasurer 2023) 4 VI. ETHICS AND CONFLICTS OF INTEREST
Employees and officials involved in the investment process shall at all times comply with each of the following:
- Recognize that the process is subject to public review - Act as a custodian of the public trust
- Recognize that their professional duties, loyalties, and responsibility are solely to the City
- Submit to the City statements of economic interest under the Political Reform Act (Government Code section 81000 et seq.)
- Not engage in any activity or have any interest that would result in a conflict of interest or the appearance of a conflict interest under the Political Reform Act, the common law, or Government Code section 1090 et seq.
- Not engage in any activity or have any interest that could interfere with unbiased involvement in the investment process (e.g., by impairing their ability to make impartial investment decisions).

VIII. AUTHORIZED FINANCIAL INSTITUTIONS, DEPOSITORIES, AND BROKER/DEALERS EXTERNAL

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Attachment: Investment Policy Redlined Changes (3187 : Annual Investment Policy Review And Authorize City Treasurer 2023) 5 PROCESS IF CITY DOES NOT ENGAGE PROFESSIONAL EXTERNAL INVESTMENT ADVISOR If the City Administrative Services Director is directly completing investment transactions without an external investment adviser, to the extent practical, the Administrative Services Director shall endeavor to complete investment transactions using a competitive bid process whenever possible. The City's Administrative Services Director will determine which financial institutions are authorized to provide investment services to the City. It shall be the City's policy to purchase securities only from authorized institutions and firms.

These institutions may include "primary" dealers or regional dealers that qualify under Securities and Exchange Commission (SEC) Rule 15c3-1 (uniform net capital rule).

X. COLLATERALIZATION
CERTIFICATES OF DEPOSIT (CDS). The City shall limit the value of investments in CD's held by a single institution to the maximum insured value by the FDIC.

F.2.b
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Attachment: Investment Policy Redlined Changes (3187 : Annual Investment Policy Review And Authorize City Treasurer 2023) 6 COLLATERALIZATION OF DEPOSITS. Process by which a bank or financial institution pledges securities, or other deposits for the purpose of securing the repayment of deposited funds.

The type and value of eligible securities is as defined by California Government Code, Section 53651.

XI. DELIVERY, SAFEKEEPING AND CUSTODY
DELIVERY-VERSUS-PAYMENT (DVP). Settlement of all investment transactions will be completed using standard delivery-versus.-payment procedures.

Percentage holding limits and credit rating minimums listed in this section apply at the time the security is purchased.

1. MUNICIPAL SECURITIES include obligations of the City, the State of California, and F.2.b
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Attachment: Investment Policy Redlined Changes (3187 : Annual Investment Policy Review And Authorize City Treasurer 2023) 7 any local agency within the State of California, provided that the following criteria is met:
• The securities are rated in a rating category of the "A" or its equivalent or bettercategory or higher by at least one nationally recognized statistical rating organization (“NRSRO”).
• No more than 5% of the portfolio may be invested in any issuer. • No more than 30% of the portfolio may be in Municipal Securities. • The maximum maturity does not exceed five years.

No more than 30% of the portfolio may be in Municipal Securities. • The maximum maturity does not exceed five years.

Treasuries, provided that the following criteria is met:
• The maximum maturity is five years.

4. FEDERAL AGENCIES or United States Government-Sponsored Enterprise obligations, participations, or other instruments, including those issued by or fully guaranteed as to principal and interest by federal agencies or United States government-sponsored enterprises. There are no limits on the dollar amount or percentage that the City may invest in Federal Agency or GovernmentSponsored Enterprises (GSEs), provided that the following criteria is met:
• No more than 2530% of the portfolio may be invested in any Agency/GSE issuer.

The maximum maturity does not exceed five years.
• The maximum percentage of callable agency securities in the portfolio is 20%.

5. BANKERS’ ACCEPTANCES, provided that the following criteria is met:
• They are issued by institutions which have short-term debt obligations rated "A1" or its equivalent or betterhigher by at least one NRSRO; or long-term debt obligations which are rated in the "A" category or its equivalent or betterhigher F.2.b
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Attachment: Investment Policy Redlined Changes (3187 : Annual Investment Policy Review And Authorize City Treasurer 2023) 8 by at least one NRSRO.
• No more than 40% of the portfolio may be invested in Bankers' Acceptances. No more than 5% of the portfolio may be invested in any issuer. • The maximum maturity does not exceed 180 days.

8. CERTIFICATE OF DEPOSIT PLACEMENT SERVICE (CDARS)ERTIFICATE OF DEPOSIT, provided that the following criteria is met and as allowed under California Government Code section 53601.8:
• No more than 30% of the total portfolio may be invested in a combination of Certificates of Deposit, including those transactions using a placement service. • The maximum maturity does not exceed five years.

9. NEGOTIABLE CERTIFICATES OF DEPOSIT (NCDS), provided that the following criteria is met:
• The amount of the NCD insured up to the FDIC limit does not require any credit ratings.
• For any amount above the FDIC insured limit they must be issued by institutions which have short-term debt obligations are rated "A-1" or its equivalent or better higher by at least one NRSRO; or long-term obligations are rated in the "A" category or its equivalent or betterhigher by at least one NRSRO. • No more than 30% of the total portfolio may be invested in NCDs. No more than 5% of the portfolio may be invested in any issuer. The maximum maturity does not exceed five years.

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Attachment: Investment Policy Redlined Changes (3187 : Annual Investment Policy Review And Authorize City Treasurer 2023) 9 10. COLLATERALIZED DEPOSITS. The City's deposits with financial institutions will be collateralized with pledged securities per California Government Code, Section 53651 and a maximum maturity not exceeding five years.

11. COMMERCIAL PAPER, provided that the following criteria is met:
a. If issued by a corporation:

1. The issuer is a corporation organized and operating in the United States with assets in excess of $500 million.
o The securities are rated "A-1" or higher by at least one NRSRO.

2. They are issued by corporations which have long-term obligations rated in the "A" category or its equivalent or better higher, if the issuer has longterm ratings, by at least one NRSRO. b. If issued by other entities:

1. The issuer is organized within the United States as a special purpose corporation, trust, or limited liability company.

12. STATE OF CALIFORNIA LOCAL AGENCY INVESTMENT FUND (LAIF), provided that the following criteria is met:
• The City may invest subject to the maximum permitted balance established by LAIF.

13. LOCAL GOVERNMENT INVESTMENT POOLS
• Other LGIPs are permitted provided that the City Council takes a separate action to authorize the LGIP and it is added to this policy.

14. CORPORATE MEDIUM TERM NOTES (MTNS), provided that the following criteria is met:
• The issuer is a corporation organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States.
• The securities are rated in the "A" category or its equivalent or higher better by at F.2.b
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Attachment: Investment Policy Redlined Changes (3187 : Annual Investment Policy Review And Authorize City Treasurer 2023) 10 least one NRSROnationally recognized statistical rating organization. • No more than 30% of the total portfolio may be invested in MTNs. No more than 5% of the portfolio may be invested in any one issuer. The maximum maturity does not exceed five years.

15. ASSET-BACKED, MORTGAGE-BACKED, MORTGAGE PASS-THROUGH SECURITIES, AND COLLATERALIZED MORTGAGE OBLIGATIONS, provided that the following criteria is met:
• The securities are rated in the "AA" category or the equivalent or higher better by a NRSRO.
• No more than 20% of the total portfolio may be invested in these securities. • No more than 5% of the portfolio may be invested in any Asset-Backed or Commercial Mortgage security issuer. There is no issuer limitation on any Mortgage security where the issuer is the US Treasury or a Federal Agency/GSE. • The maximum maturity does not exceed 5 years.

1. Attained the highest ranking or the highest letter and numerical rating provided by not less than two (2) NRSROs; or

1. Have attained the highest ranking or the highest letter and numerical rating provided by not less than two (2) NRSROs; or

3. No more than 20% of the total portfolio may be invested in Money Market F.2.b
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Attachment: Investment Policy Redlined Changes (3187 : Annual Investment Policy Review And Authorize City Treasurer 2023) 11 Mutual Funds.

17. SUPRANATIONALS, provided that the following criteria is met:
• The issue purchased shall be U.S. 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.
• Issues are "eligible for purchase and sale within the United States." • The securities are rated in the "AA" category or its equivalent or betterhigher by a NRSRO.
• No more than 30% of the total portfolio may be invested in these securities. • No more than 10% of the portfolio per issuer
• The maximum maturity does not exceed five years.
•
•
XIII. MAXIMUM MATURITY
To the extent possible, the overall portfolio and investments shall take into consideration anticipated cash flow requirements and known future liabilities.

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Attachment: Investment Policy Redlined Changes (3187 : Annual Investment Policy Review And Authorize City Treasurer 2023) 12 • The purchase of foreign currency denominated securities is prohibited. • The purchase of a security with a forward settlement date exceeding 45 days from the time of the investment is prohibited.

XV. RISK MANAGEMENT AND DIVERSIFICATION

MITIGATING CREDIT RISK IN THE PORTFOLIO
Credit risk is the risk that a security or a portfolio will lose some or all of its value due to a real or perceived change in the ability of the issuer to repay its debt. The City will mitigate credit risk by adopting the following strategies:
• The diversification requirements included in the "Authorized Investments" section of this policy are designed to mitigate credit risk in the portfolio. • No more than 5% of the total portfolio may be invested in securities of any single issuer per each category in Section XII of this policy, except where the issuer is the U.S. Government, its Agencies and GSEs, or Supranationals, or where the security is Money Market Mutual Funds or Local Government Investment Pools, or where otherwise specified in this investment policy.
• The City may elect to sell a security prior to its maturity and record a capital gain or loss in order to improve the quality, liquidity or yield of the portfolio in response to market conditions or the City's risk preferences.
• If securities owned by the City are downgraded by a NRSRO to a level below the quality required by this investment policy, it will be the City's policy to review the credit situation and make a determination as to whether to sell or retain such securities in the portfolio.
• If a security is downgraded, the Administrative Services Director/ City Treasurer will use discretion in determining whether to sell or hold the security based on its current maturity, the economic outlook for the issuer, and other relevant factors. Downgraded securities will be reported to the City Council in the quarterly investment report.
• If a decision is made to retain a downgraded security in the portfolio, its presence in the portfolio will be monitored and reported monthly to the City Council.

F.2.b
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Attachment: Investment Policy Redlined Changes (3187 : Annual Investment Policy Review And Authorize City Treasurer 2023) 13 The City further recognizes that certain types of securities, including variable rate securities, securities with principal pay downs prior to maturity, and securities with embedded options, will affect the market risk profile of the portfolio differently in different interest rate environments. The City, therefore, adopts the following strategies to control and mitigate its exposure to market risk:
• The City will maintain a minimum of six months of budgeted operating expenditures in short term investments to provide sufficient liquidity for expected disbursements. • The maximum stated final maturity of individual securities in the portfolio will be five years, except as otherwise stated in this policy.
• The duration of the portfolio will strive at all times be approximately equal to the duration (typically, plus or minus 20%) of a market benchmark, an index selected by the City based on the City's investment objectives, constraints and risk tolerances.

XVIII. REPORTING

1. These reports shall include the type of investment, issuer, date of maturity, par and dollar amount invested on all securities, investments and moneys held by the City, F.2.b
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Attachment: Investment Policy Redlined Changes (3187 : Annual Investment Policy Review And Authorize City Treasurer 2023) 14 and shall additionally include a description of any of the City's funds, investments, or programs, that are under the management of contracted parties, including lending programs. With respect to all securities held by the City, and under management of any outside party that is not also a local public agency or the State of California Local Agency Investment Fund, the report shall also include a current market value as of the date of the report, and shall include the source of this same valuation.

2. Monthly transactions for the period in accordance with California Government Code Section 53607.

4. A statement regarding whether the portfolio will allow the City to have adequate funds to meet its cash flow requirements for the next six months.

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Attachment: Investment Policy Redlined Changes (3187 : Annual Investment Policy Review And Authorize City Treasurer 2023) 15 GLOSSARY OF INVESTMENT TERMS
Glossary of Investment Terms
AGENCIES. Shorthand market terminology for any obligation issued by a government-sponsored entity (GSE), or a federally related institution. Most obligations of GSEs are not guaranteed by the full faith and credit of the US government. Examples are: