Agenda packet, regular meeting — Orinda City Council, October 1, 2024

MEMBERS OF THE PUBLIC MAY PARTICIPATE IN THIS MEETING

IN PERSON, OR VIEW ON ZOOM OR YOUTUBE AS LISTED BELOW
https://www.youtube.com/@cityoforinda9535/streams
Zoom Webinar:
https://tinyurl.com/OrindaCityCouncil
Phone:669 444 9171
Webinar ID:
810 2271 2723
In Person:

Orinda Library Auditorium
26 Orinda Way
Orinda, CA 94563
(925) 351-6676

CITY COUNCIL
AGENDA
Tuesday, October 1, 2024
7:00 PM - REGULAR MEETING
City Council
Agenda Page 1 10.01.24
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.

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
REMOTE COMMENTS: Remote Public Comments have been discontinued for the foreseeable future.
7:00 PM - REGULAR SESSION
A. CALL TO ORDER / ROLL CALL
Councilmembers: Brandyn Iverson, Inga Miller, Janet Riley Vice Mayor Latika Malkani, Mayor Darlene Gee
B. PLEDGE OF ALLEGIANCE
City Council
Agenda Page 2 10.01.24
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. Introduction of New Police Chief Anthony Rossi
D.2. Introduction of New Administrative Assistant Pat D'Amico D.3. Proclamation Declaring September 21-27, 2024 as United Against Hate Week
D.4. Proclamation Recognizing City Manager David Biggs
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. September 3, 2024
F.2. Proposed Adoption of a Revised Schedule of Hourly Pay Rates (Temporary / Seasonal / Project Positions)
Recommendation:

It is recommended that the City Council adopt Resolution 43-24 Approving the revised Hourly Pay Rates for Temporary, Seasonal and Project Positions.

F.3. Authorize Purchase of Replacement Medium Duty Dump Truck for Public Works Department
Recommendation:

Approve Resolution 44-24, waiving the formal bid process pursuant to Chapter 2.55.100 of the Orinda Municipal Code, approving Budget Change Form #003-25, and issuing a purchase order to Peterson Trucks Inc. to replace a medium duty dump truck at a cost of $157,605.39.

City Council
Agenda Page 3 10.01.24
F.4. Approving Parcel Map for Subdivision MS 2023-005 Urban Lot Split at 314 La Espiral
Recommendation:

Staff recommends adoption of Resolution No. 45-24, approving Parcel Map for 314 La Espiral (MS 2023-005 Urban Lot Split).

F.5. Annual Investment Policy Review And Authorize City Treasurer for Fiscal Year 2024-25
Recommendation:

Adopt Resolution 50-23 which completes the Annual Review, making minor changes to the policy; and delegating the authority to make investments
G. PUBLIC HEARING
G.1. Annual Development Agreement Compliance Review for the Wilder Project
Recommendation:

Staff recommends that the City Council find, based on all of the evidence, that OGLLC is in substantial compliance with the DA and related approvals.

H. POLICY MATTERS
H.1. Continue Consideration of Options for Completion of Crossroads Mini Park (CIP project #4103)
Recommendation:

Receive Presentation from Gates & Associates, Discuss, and Provide Direction, if any.

H.2. Orinda Community Park Master Plan Update
Recommendation:

Staff recommends the City Council receive this update regarding the Orinda Community Park Master Plan conceptual design, take public testimony, and provide feedback
H.3. Update from Callander Associates Regarding Conceptual Design and Estimated Construction Costs for Designated Off-leash Dog Area at Wilder Park in Orinda
Recommendation:

Receive Report, Discuss, and Provide Direction, if any.

City Council
Agenda Page 4 10.01.24
I. COUNCILMEMBERS' REPORTS
J. CITY MANAGER'S REPORT
K. MATTERS INITIATED
L. ADJOURNMENT
The next meeting of the Orinda City Council will be held on Wednesday, October 09, 2024 at 6:30 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.

CITY OF ORINDA PROCLAMATION
DECLARING SEPTEMBER 21-27, 2024 AS

UNITED AGAINST HATE WEEK
WHEREAS, the City of Orinda stands for diversity, inclusivity, and respect for all, irrespective of race, ethnicity, religion, gender, sexual orientation, disability, or any characteristic; and
WHEREAS, we reject hate, discrimination, and violence, aiming for a prejudice-free community; and
WHEREAS, we collectively promote acceptance, respect and tolerance, and unity, enabling residents to live, work, and thrive without fear; and WHEREAS, united, we strengthen and celebrate our city's rich tapestry of cultures and perspectives; and
WHEREAS, the "United Against Hate Week" campaign embodies our collective commitment to foster an environment where every resident can live, work, and flourish without fear of hatred; and
WHEREAS, we endorse the "California vs Hate" coalition's mission to combat hate, prejudice, and intolerance such as xenophobia, antiSemitism, sexism, homophobia, transphobia, anti-Muslim hatred, and other bigoted views by emboldened hate groups and individuals and intolerance from our communities, and encourage communities to report hate incidents to the California vs Hate hotline; and
WHEREAS, by joining with our fellow California cities, we send a resounding message that we are united in our resolve to combat hate and promote acceptance; and

UNITED AGAINST HATE WEEK
We call upon all residents, businesses, schools, and organizations to unite against hate, join events, and champion inclusivity, tolerance, and unity.

D.3
Packet Pg. 5
Communication: Proclamation Declaring September 21-27, 2024 as United Against Hate Week (ITEMS FOR THE GOOD OF THE CITY) During this week, we reaffirm our commitment to the following principles:

1. We denounce hate, discrimination, and violence in all forms.

2. We pledge to stand up against hate and support victims of hate incidents.

3. We encourage open dialogue and respectful conversations to bridge divides and promote understanding.

4. We celebrate the richness of our diverse community and the strength it brings to our city.

5. We commit to working together, in partnership with other California cities, to create a safe and welcoming environment for all.

Furthermore, we urge our community members to report any hate incidents to the California vs Hate hotline at 833-8-NO-HATE or online at CAvsHate.org, in order to combat hate effectively and promote a safer environment for all.

NOW, THEREFORE, BE IT PROCLAIMED that the City of Orinda, is in enthusiastic support of United Against Hate Week, in solidarity with the "California vs Hate" coalition and partners, in our community on September 21st - 27th, 2024, and each and every day beyond.

Darlene K. Gee
Mayor, City of Orinda
D.3
Packet Pg. 6
Communication: Proclamation Declaring September 21-27, 2024 as United Against Hate Week (ITEMS FOR THE GOOD OF THE CITY) AGENDA TITLE: City Council Minutes
RECOMMENDATION:

Approve City Council Minutes:

1. September 3, 2024
ATTACHMENTS:

A. City Council Minutes of September 3, 2024
Respectfully Submitted by:

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

F.1
Packet Pg. 7
Orinda City Council Minutes Page 1 of 7 09.03.24
SEPTEMBER 3, 2024

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

COUNCILMEMBERS PRESENT: Brandyn Iverson, Inga Miller, Janet Riley Mayor Darlene Gee, Vice Mayor Latika Malkani
COUNCILMEMBERS ABSENT: None
B. PLEDGE OF ALLEGIANCE – Led by Mayor Gee.

C. ADOPTION OF AGENDA
MOTION by Vice Mayor Malkani, and seconded by Councilmember Riley, 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 September, 2024 as Childhood Cancer Awareness Day in the City of Orinda
Mayor Gee read and presented the Proclamation recognizing September, 2024 as Childhood Cancer Awareness Day in the City of Orinda.

Mayor Gee opened the Public Forum.

Nick Waranoff asked the Council to consider proclamations that are within the jurisdiction of the City.

E. PUBLIC FORUM
Nick Waranoff referred to his correspondence and spoke about RHNA, asked to ban the Downtown Precise Plan which would add many additional housing units if the density bonus law is used, and asked to balance the revitalization of the downtown against the adverse impacts on emergency evacuation, traffic, and parking.

F.1.a
Packet Pg. 8
Attachment: City Council Minutes of September 3, 2024 (3430 : City Council Minutes) Orinda City Council Minutes Page 2 of 7 09.03.24
City Clerk Smith noted for the record that six public comments were received via email and are also posted on the City’s website.

F. CONSENT CALENDAR
Mayor Gee stated she received a request to remove Item F.2. She asked if there were any other items for removal or public comments, and there were none.

F.1. City Council Minutes
Recommendation:

Approve City Council Minutes:

1. August 20, 2024 Special Meeting

2. August 20, 2024 Regular Meeting

3. August 27, 2024 Special Meeting
F.3. Adoption of Amendments to the City’s Conflict of Interest Code for Designated Filers
Recommendation:

Staff recommends that the City Council consider adoption of Resolution No. 39-24 amending the City’s Conflict of Interest Code for Designated Filers and the repeal of Resolution No. 48-22
F.4. Approve Traffic Order #232 Restricting Parking on Moraga Way Recommendation:

Staff recommends that the City Council Adopt Resolution 37-24 establishing parking regulations on Moraga Way approaching crosswalk near Bryant Way.

MOTION by Councilmember Iverson, and seconded by Councilmember Miller, to approve Consent Calendar Item F.1.1, F.1.2, F.1.3, F.3, and F.4. Said motion carried by unanimous (5-0) roll call vote.

Item Removed from the Consent Calendar:

F.2. Consider any Amendments and Adopt City Council Policy & Procedures Manual
Recommendation:

Adopt Resolution No. 40-24 adopting the City Council Policies and Procedures Manual
City Clerk Sheri Smith gave the staff report and overview of Council liaisons appointed to various commissions and committees. One public comment has been received, as well as a communication from Councilmember Miller to make a slight change to the last paragraph under Section 9.1.4.

F.1.a
Packet Pg. 9
Attachment: City Council Minutes of September 3, 2024 (3430 : City Council Minutes) Orinda City Council Minutes Page 3 of 7 09.03.24
In response to a question of Councilmember Iverson regarding the second change, Councilmember Miller explained that she added City Councilmembers to clarify a Councilmember would not be speaking on their own as an independent citizen but only as a City Councilmember.

Mayor Gee opened the Public Forum.

Nick Waranoff said the City Manager has been able to decide on whether or not to place an item on the agenda at his/her discretion. The Council also has the ability to request a Matters Initiated, which then goes to the City Manager who decides when it goes on the agenda. Therefore, he asked that the Council have the ability to agendize a matter.

Vice Mayor Malkani voiced support of Councilmember Miller’s edits. She voiced a request for additional edits, as follows:
• Under Section 9.1.4, top of the packet page 37: “The Council’s appointed liaison should not be an advocate for the Commission, give direction, or attempt to influence any decision or recommendation of the Commission/Committee.” Her proposal is to remove the words “give direction” because there may be times when a Councilmember, in the capacity as described in the final paragraph, is asked to state what occurred at a meeting.
• The next sentence reads, “Council liaison attendance at Commission/Committee meetings is not an expectation and regular attendance is discouraged.” She recommended not ending the sentence with an expectation.

Councilmember Miller voiced support of Vice Mayor Malkani’s edits, and she suggested more leeway be given to Councilmembers, depending upon the circumstance.

Council discussion ensued, and Councilmember Miller suggested it state, “regular attendance is not an expectation.” Councilmembers voiced consensus.

Regarding the first paragraph, the sentence would remove “give direction” and read, “The Council’s appointed liaisons should not be an advocate for the commission or attempt to influence any decision or recommendation of the commission/Committee.” Councilmembers voiced consensus.

Mayor Gee asked for any other changes.

Councilmember discussion ensued regarding a Councilmembers’ ability to indicate in their motion when they would like a Matters Initiated to return, the variety of ways this topic is handled by local governments of Orinda’s size, elected versus appointed Mayors, and ways topics return on the agenda.

Councilmembers then confirmed the changes made based upon discussion and agreement were:

F.1.a
Packet Pg. 10
Attachment: City Council Minutes of September 3, 2024 (3430 : City Council Minutes) Orinda City Council Minutes Page 4 of 7 09.03.24

1. Under Section 9.1.4, last paragraph, incorporate Councilmember Miller’s changes which she submitted in writing.

2. Under 9.1.4, top of the packet page 37, remove words “give direction.”

3. Change next sentence to read, “regular attendance is not an expectation.” MOTION by Councilmember Riley, and seconded by Councilmember Miller, to adopt Resolution No. 40-24 adopting the City Council Policies and Procedures Manual, with amendments. Said motion carried by unanimous (5-0) roll call vote.

G. PUBLIC HEARING – None.

H. POLICY MATTERS
H.1. City Council Meeting Schedule for 2025
Recommendation:

Review, Amend, and Adopt City Council Meeting Schedule for 2025 City Clerk Sheri Smith gave the staff report and overview of the proposed City Council Meeting Schedule for 2025. She asked for Council feedback on the four proposed exceptions for the usual first and third Tuesdays, which include:
• Add Saturday, February 22nd for a Committee/Commission Interview Day • Not to hold a meeting on the first meeting in August due to National Night Out • Hold a meeting on Monday, April 7th instead of Tuesday, April 1st due to Spring Break
• Hold a meeting on Monday, November 3rd instead of Tuesday, November 4th due to the election
Councilmember Riley stated she has four conflicts and asked to change the meetings of the first weeks of March, June, and October.

Councilmember discussion ensued regarding Councilmembers having meeting conflicts and being excused, historical precedence, staff report timelines, and new Councilmembers coming on board.

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

Mayor Gee indicated she would not be in attendance for the February 22nd special interview meeting and the Council discussed and agreed to move these interviews to February 8th.

MOTION by Vice Mayor Malkani, and seconded by Councilmember Iverson, to adopt the City Council Meeting Schedule for 2025, as amended, changing the February 22, 2025 special meeting to February 8, 2025. Said motion carried by unanimous (5-0) roll call vote.

F.1.a
Packet Pg. 11
Attachment: City Council Minutes of September 3, 2024 (3430 : City Council Minutes) Orinda City Council Minutes Page 5 of 7 09.03.24
H.2. 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 October 16-18, 2024 League Annual Conference and Expo in Long Beach
City Clerk Sheri Smith gave the staff report and overview of the matter to delegate the Voting Delegate and potential Alternate to the League of California Cities Annual Conference.

Mayor Gee stated she can tentatively attend. She asked and there was consensus that she and the Vice Mayor be appointed as the Voting Delegate and Alternate.

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

MOTION by Councilmember Iverson, and seconded by Councilmember Miller, to designate the Mayor as the Voting Delegate and Vice Mayor as the Alternate at the League of California Cities Annual Conference. Said motion carried by unanimous (5- 0) roll call vote.

I. COUNCILMEMBER REPORTS
Councilmember Iverson and Mayor Gee indicated their absence at the next Council meeting.

Councilmember Miller announced the wonderful article in the Orinda News regarding the City’s two new directors.

Councilmember Riley reported on her attendance at the ribbon-cutting ceremony for White Pony Express, stating it was a great turnout, a nice celebration with great refreshments and speeches.

Mayor Gee reported on the 2x2 Subcommittee meeting with MOFD, stating there was a presentation by Susan Anderson-Berger who worked with Micki Cronin and James Duff to create the Fire Savvy Landscape Plan, copies of which are available in the library as well as resource books, on the website, and in print.

Mayor Gee stated the 2x2 Subcommittee also discussed Chief Winnacker’s retirement at the end of the year, received an update on the City’s compliance which needs improvement, discussed on-going issues with insurance, and she said a joint meeting will be held on October 21st to discuss potential changes to the Fire Code.

F.1.a
Packet Pg. 12
Attachment: City Council Minutes of September 3, 2024 (3430 : City Council Minutes) Orinda City Council Minutes Page 6 of 7 09.03.24
Mayor Gee also reported on the Infrastructure Subcommittee meeting held where City staff shared with the public Council items from July on the Harris and Associates doing the PTAP survey on private roads, as well as the status of the potential timetable for an RFP for the storm drainage scope. There was also input received regarding Ordinance 59-18 adopted in 2018 as a replacement for Ordinance 56-90. Lastly, discussion occurred regarding the Homeowner’s Guide updates. The next subcommittee meeting is scheduled for October 30th.

J. CITY MANAGER'S REPORT
City Manager Biggs said the Parks and Recreation Department has introduced and publicized on-line tennis and pickleball court reservations. He also reported that Lieutenant Tony Rossi will join the City as their new Police Chief on Monday, September 8 th. Lieutenant Rossi previously worked in Orinda from January 2023 to May 2024 assigned as the City’s Detective and Patrol Sergeant.

Mayor Gee commented that she and Councilmember Iverson interviewed candidates who were of unbelievable caliber.

City Manager Biggs commented that City Manager Smith also participated in the interviews and said they are looking forward to Police Chief Rossi joining the City.

K. MATTERS INITIATED – None.

L. CLOSED SESSION

1. OPEN SESSION IDENTIFICATION of Closed Session Matters

2. PUBLIC COMMENTS of Closed Session Matters – None.

3. CLOSED SESSION

4. REPORT OUT OF CLOSED SESSION
a. CONFERENCE WITH LEGAL COUNSEL -- ANTICIPATED LITIGATION Pursuant to Government Code Section 54956.9(d)(4), conference with legal counsel regarding potential initiation of litigation. (One potential case). b. CONFERENCE WITH REAL PROPERTY NE-GOTIATORS
(Gov. Code section 54956.8). Property: an existing private easement burdening a portion of the Orinda Oaks Park property in the City of Orinda. This easement was recorded on January 30, 1985 in the official records of Contra Costa County at book 12164 page 650-651. City Negotiator: David Biggs, City Manager.

Negotiating Parties: City of Orinda & the owners of four of the private residential properties benefitted by the easement: Stacy Crinks, Gregory & Susan Portmann, Christine(Dong Woon) Lee & Eun Young Jang, and John & Juliane Rossiter.

Property addresses: 75, 79, 83 & 89 Donald Drive. Under negotiation: terms for possible amendment to the existing easement.

F.1.a
Packet Pg. 13
Attachment: City Council Minutes of September 3, 2024 (3430 : City Council Minutes) Orinda City Council Minutes Page 7 of 7 09.03.24

13. ADJOURNMENT
The Regular Meeting was adjourned at approximately 8:01 p.m. to the next Regular Meeting on Tuesday, September 17, 2024, at 7:00 p.m. The Closed Session adjourned at 9:30 p.m. with no anouncements.
______________________________________
Sheri Marie Smith, City Clerk
F.1.a
Packet Pg. 14
Attachment: City Council Minutes of September 3, 2024 (3430 : City Council Minutes) City Council
Staff Report
Agenda Item: F.2
Date: October 1, 2024
Department: Human Resources
AGENDA TITLE: Proposed Adoption of a Revised Schedule of Hourly Pay Rates (Temporary / Seasonal / Project Positions)
RECOMMENDATION:

It is recommended that the City Council adopt Resolution 43-24 Approving the revised Hourly Pay Rates for Temporary, Seasonal and Project Positions.

BACKGROUND:

On October 30, 2018, the Council adopted Resolution 74-18 establishing the job classifications and an associated salary schedule for positions identified as temporary, seasonal and project positions. On November 5, 2019 the Council adopted Resolution 62-19 lowering the minimum hourly pay rate for the classification of Special Projects Associate to allow more flexibility for limited term personnel within this broad classification range. On March 19, 2022, the Council adopted Resolution 10-22 adjusting the hourly pay rates for temporary, seasonal and project positions. Since March 2022 there have been no increases to the hourly pay rate for temporary, seasonal and project positions, however, the minimum wage in California has increased from over the past two years from $14.00 per hour on January 1, 2021, to the current minimum hourly wage of $16.00 per hour for employers with twenty-six or more employees. On August 1, 2024 the California Department of Finance officially certified that beginning January 1, 2025, California’s minimum wage will increase to $16.50 per hour for all employers, regardless of size.

DISCUSSION:

City Departments hire a variety of part-time and seasonal staff to supplement the regular, full-time positions. This is especially prevalent in the Parks & Recreation Department where programming requirements change throughout the year based on the season. The Council established base pay rates for all temporary, seasonal and project (limited term) positions on October 30, 2018. At that time the minimum wage rate was $13.00 per hour which equaled the starting rate of pay for several positions.

Since this time, the California Minimum Wage increased to $16.00 per hour effective January 1, 2024 for employers with twenty-six or more employees. To be competitive and retain workers in these categories, and to keep up with the State’s minimum wage rate law, the City needs to amend the current salary schedule. The City Manager has the authority, subject to available funds within the approved budget, to approve temporary, seasonal or project (limited term) workers.

In reviewing the hourly pay rates, staff took into consideration the cost-of-living adjustments provided to regular-full time employees in July 2022 and 2023. Staff also reviewed similar positions in comparable cities. Staff recommends that the salary F.2
Packet Pg. 15
schedule be modified to address changes in minimum wage and provide a reasonable wage range for these positions.

The recommended adjustments are noted below. The current hourly rates are struck out while the proposed rates are in redline format:

Position Title Minimum Hourly Maximum Hourly
Clerical Assistant Calif Minimum Wage* $23.50 $25.00
Facility Attendant Calif Minimum Wage* $21.00 $23.50
Gym Attendant Calif Minimum Wage* $17.00 $19.00
Intern Calif Minimum Wage* $23.00 $25.00
Parking and Traffic Specialist $19.50 $21.00 $26.25 $28.00 Public Works Maintenance Assistant $16.00 $17.50 $26.00 $28.00 Recreation Leader Calif Minimum Wage* $17.00 $18.50
Recreation Program Specialist $16.00 $17.50 $23.00 $24.50 Senior Facility Attendant $16.00 $17.50 $26.00 $28.00
Special Projects Associate $24.00 $25.50 $80.00 $86.00
The California minimum wage changes for employers of more than 26 employees in recent years is listed below:
1/1/2025 $16.50
1/1/2024 $16.00
1/1/2023 $15.50
1/1/2022 $15.00
1/1/2021 $14.00
Staff has prepared a Resolution (Attachment A) which includes the proposed adjustment to the previously adopted temporary and part-time schedule of hourly rates.

FISCAL IMPACT:

There are no immediate fiscal impacts associated with this agenda item. The assignment of temporary personnel is subject to available budgeted funds and City Manager approval.

ATTACHMENTS:

A. Resolution 43-24 Amending Hourly Rate for Temporary-Seasonal-Project Positions F.2
Packet Pg. 16
Respectfully Submitted by:

Ginger Staton
Human Resources Manager
Prepared By: Ginger Staton, Human Resources Manager
Approved by:

F.2
Packet Pg. 17

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

Approving a revised Hourly Pay-Rate )
Schedule for Temporary, Seasonal )
And Project Positions ) Resolution No. 43-24
WHEREAS, it is desirable to periodically update the hourly pay-rate schedule for personnel identified as temporary, seasonal or project positions in the City of Orinda Personnel Rules; and
WHEREAS, the City Council on October 30, 2018 adopted Resolution 74- 18 establishing hourly pay rates for temporary and seasonal positions; and WHEREAS, the City Council on November 5, 2019 adopted Resolution 62-19 lowering the minimum hourly pay rate for the Special Projects Associate position; and
WHEREAS, the City Council on March 19, 2022 adopted Resolution 10-22 adjusting hourly pay rates for temporary and seasonal positions; and WHEREAS, temporary hourly rates Schedule for all classifications, have not been adjusted since March 2022 and the California Minimum Wage has risen; and
WHEREAS, in order to keep up with current minimum wage law and adjust in order to maintain a reasonable wage range for temporary, seasonal and project positions;
NOW THEREFORE BE IT RESOLVED he City Council adopts the hourly pay rates for temporary, part-time, and project positions as attached hereto as Exhibit A, and effective October 5, 2024.

Adopted by the City Council of the City of Orinda at a regular meeting on October 1, 2024 by the following vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

Darlene Gee, Mayor
ATTEST:

Sheri Marie Smith, City Clerk
F.2.a
Packet Pg. 18
Attachment: Resolution 43-24 Amending Hourly Rate for Temporary-Seasonal-Project Positions [Revision 1] (3429 : Revised Pay Rates EXHIBIT A – RESOLUTION 43-24
City of Orinda
Schedule Hourly Pay Rates
Temporary, Part-Time, Seasonal and Project Positions
UNIT: Unrepresented Non-Regular / At-Will
Position Title Minimum Hourly Maximum Hourly
Clerical Assistant Calif Minimum Wage* $25.00
Facility Attendant Calif Minimum Wage* $23.50
Gym Attendant Calif Minimum Wage* $19.00
Intern Calif Minimum Wage* $25.00
Parking and Traffic Specialist $21.00 $28.00
Public Works Maintenance Assistant $17.50 $28.00
Recreation Leader Calif Minimum Wage* $18.50
Recreation Program Specialist $17.50 $24.50
Senior Facility Attendant $17.50 $28.00
Special Projects Associate $25.50 $86.00
*2024 California minimum wage for employers of more than 26 employees 1/1/2024 $16.00 per hour*
1/1/2025 $16.50 per hour (regardless of employer size)
F.2.a
Packet Pg. 19
Attachment: Resolution 43-24 Amending Hourly Rate for Temporary-Seasonal-Project Positions [Revision 1] (3429 : Revised Pay Rates City Council
Staff Report
Agenda Item: F.3
Date: October 1, 2024
Department:

Public Works and
Engineering Services
AGENDA TITLE: Authorize Purchase of Replacement Medium Duty Dump Truck for Public Works Department
RECOMMENDATION:

BACKGROUND:

The city currently owns a 2009 F650 Ford diesel powered medium duty dump truck, with approximately 50,000 miles on the odometer. The truck is used in the regular course of business for hauling materials (asphalt, sand for sandbags, etc.) to work sites and hauling soil and landslide debris from work locations. It is also utilized for transporting the Bobcat tractor (on trailer) to and from work sites.

In two years, under State law, only electric vehicles can be purchased by public agencies. Currently there are no electric vehicles that can meet the service requirements of a medium duty dump truck, which has a 20,000-pound capacity. While the city could continue using the current dump truck for the next few years, it is not likely that a reliable electric truck of this type will be available when the dump truck reaches the end of its useful life. It is also possible that the State may prohibit use of diesel vehicles that are not equipped with DEF (diesel exhaust fluid) which reduces emissions, and which all newer trucks are equipped with in California. The city’s 2009 dump truck is not equipped with DEF and was scheduled for replacement last fiscal year.

DISCUSSION:

Staff evaluated replacement options for the dump truck and confirmed with truck dealers that an electric truck option is not available to meet the service requirements. There are diesel vehicles equipped with DEF which are available now, and staff obtained the following proposals, based on established cooperative purchasing arrangements:
• Western Truck Center, West Sacramento
Mack MD642 truck $164,498.97
• Pape Kenworth, San Leandro
Kenworth T280 truck $196,216.00
• Peterson Trucks, San Leandro
Navistar International MV607 truck $157,605.39
F.3
Packet Pg. 20
In order to proactively maintain the vehicle fleet for public works and prepare for upcoming limitations in vehicles that comply with recently adopted regulations, staff recommends purchasing a replacement truck at this time. This will provide the following benefits:
• Fleet emission requirements will be more readily met, since a new dump truck provides improved emissions compliance. Thresholds continue to be more strict.
• The new vehicle will pollute significantly less than the truck it replaces. • The new vehicle will have modern, improved safety features. • The existing vehicle can be sold at auction (most likely for out of state use) for a relatively good price (estimated by truck dealers in the $50,000 to $60,000 range), as the truck has been well maintained and has relatively low mileage.

Each year as part of the City Operating Budget, charges are made to departments that operate vehicles, with the funds set-aside in the Fleet/Vehicle Replacement Internal Service Fund (Fund #603). The concept is to avoid creating an impact on the General Fund for the full cost of a new vehicle in the year that it is replaced. This vehicle was originally scheduled for replacement last fiscal year.

Purchasing Policy Requirements
Orinda Municipal Code Section 2.55.080 requires that purchases of equipment costing more than $60,000 must be approved by the City Council. In addition, Orinda Municipal Code Section 2.55.100.A.7 contains specific exception for the City to acquire goods and services without a first conducting a competitive bidding process when another public agency has already administered a competitive bidding process and has a current valid agreement for the same or substantially similar equipment in place.

The proposals denoted above (Attachment B) are based on cooperative purchasing agreements (Sourcewell) which qualify for the bidding exception described above. The proposal from Peterson Trucks in San Leandro, for a Navistar International MV607 for a total of $157,605.39 is the lowest cost option, and it is therefore recommended that a purchase order be issued to them for this amount.

NEXT STEPS:

Upon adoption of the subject resolution, Staff will issue a purchase order to Peterson Trucks for the subject purchase. The subject truck is currently in this dealer’s inventory so it would be available upon payment. Upon receipt of the new dump truck, the current dump truck will be provided to the vehicle auction company the city utilizes, and proceeds from the sale will be provided to the city.

FISCAL IMPACT:

This purchase was originally budgeted to occur in Fiscal Year 2023-24 and with the approval of the Budget Adjustment Form, #003-25 (Attachment C) the unspent appropriation of $157,000 from Fiscal Year 2023-24 will be rolled over to Fiscal Year 2024-25 budget. Sufficient funds are available for the subject purchase in the Vehicle Replacement Fund (Fund #605). Proceeds received from the surplus sale of the F.3
Packet Pg. 21
existing vehicle will be credited back to the Vehicle Replacement Fund to be used to purchase replacement vehicles in the future.

ATTACHMENTS:

A. Resolution 44-24 Approve Purchase of Dump Truck
B. Truck quotes
C. Budget Change Form #003-25
Respectfully Submitted by:

Scott Christie
Public Works Director
Prepared By: Scott Christie, Public Works Director
Approved by:

F.3
Packet Pg. 22

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

Authorize Purchase of Replacement
Medium Duty Dump Truck for Public
Works Department
)
) Resolution No. 44-24
WHEREAS, the Vehicle Replacement Fund is programmed for the purchase of one replacement medium duty dump truck for Public Works; and WHEREAS, Staff has received a proposal from Peterson Trucks for a replacement dump truck that meets the service needs, via Sourcewell, a cooperative purchasing agreement, for $157,605.39.

NOW THEREFORE BE IT RESOLVED, that the City Council of the City of Orinda waives the formal bid process pursuant to Chapter 2.55.100 of the Orinda Municipal Code, and approves staff to purchase one replacement dump truck as herein described.

ADOPTED by the City Council of the City of Orinda at a regular meeting of the Council held on October 1, 2024 by the following vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

Darlene Gee, Mayor
ATTEST:

Sheri Marie Smith, City Clerk
F.3.a
Packet Pg. 23
Attachment: Resolution 44-24 Approve Purchase of Dump Truck (3432 : buy dump truck) F.3.b
Packet Pg. 24
Attachment: Truck quotes (3432 : buy dump truck)
F.3.b
Packet Pg. 25
Attachment: Truck quotes (3432 : buy dump truck)
F.3.b
Packet Pg. 26
Attachment: Truck quotes (3432 : buy dump truck)
F.3.b
Packet Pg. 27
Attachment: Truck quotes (3432 : buy dump truck)
F.3.b
Packet Pg. 28
Attachment: Truck quotes (3432 : buy dump truck)

CITY OF ORINDA
BUDGET CHANGE FORM FISCAL YEAR 2024-25
Funds Appropriated Mid-Cycle Budget Adjustment Adopted 6/18/2024 CHANGE FORM # 003-25
New Appropriations (City CouncilApproval Required): Budget Transfers:

From Un-Appropriated Reserves From Budgeted Contingent Reserve (Approval Req’d) __ _ Reduction To Adopted Budget

GENERAL FUND
New Revenue ONLY
Between Departments (City Council Approval Req’d)
x Other: Roll-over of unspent appropriation from FY2023- 24, funds available in un-appropriated reserves

BUDGET ACCOUNT
(Revenue / Expense)

INCREASE
AMOUNT

DECREASE
AMOUNT
INCREASE OF BUDGETED EXPENSE IN FY 2024-25:
605-35-00-7797

VEHICLE REPLACEMENT FUND/ PUBLIC WORKS / NO PROGRAM /

VEHICLE PURCHASE
$157,000
As Presented at the City Council Meeting on: October 1, 2024 #################(Finance Use Only)###################
NOTE: FY 2023 Not In System – NEED TO INCORPORATE WITH MID-CYCLE ADJ Posted By: Date:

REASON FOR BUDGET CHANGE ENTRY: Vehicle originally planned for replacement in Fiscal Year 2023-24. Budget Change Form approved at Oct 1, 2024 Council Meeting which rolled unspent appropriation from 2023-24 to 2024-25.

F.3.c
Packet Pg. 29
Attachment: Budget Change Form #003-25 (3432 : buy dump truck) City Council
Staff Report
Agenda Item: F.4
Date: October 1, 2024
Department:

Public Works and
Engineering Services
AGENDA TITLE: Approving Parcel Map for Subdivision MS 2023-005 Urban Lot Split at 314 La Espiral
RECOMMENDATION:

Staff recommends adoption of Resolution No. 45-24, approving Parcel Map for 314 La Espiral (MS 2023-005 Urban Lot Split).

BACKGROUND:

Under SB9 legislation which was effective January 1, 2022, the subject property owners, Gabriel Grisham and Ning Meng submitted an application for a lot split for 314 La Espiral. After determining the application was complete and reviewing submittals, the Tentative Parcel Map was deemed complete on June 26, 2024; no discretionary approvals are required/allowed under SB9.

DISCUSSION:

The owners have submitted the final Parcel Map (Attachment B) for MS 2023-005 with all supplementary documents and fees, to the Planning Department and the Public Works and Engineering Services Department for filing in accordance with the Subdivision Map Act, Title 16 of the City of Orinda Municipal Code (OMC), and the Conditions of Approval. The required signatures are in process of being acquired.

Public Works and Engineering Services Department has reviewed the Parcel Map for the 314 La Espiral Minor Subdivision (MS 2023-005 Urban Lot Split) and found it to be in conformance with the Tentative Parcel Map and Conditions of Approval.

Planning Department has determined that all applicable requirements, including the Conditions of Approval, have been satisfied for the 314 La Espiral Minor Subdivision (MS 2023-005 Urban Lot Split).

According to the Subdivision Map Act section 66458(a), and the provisions of Chapter 16 of the OMC, the City Council must approve the Parcel Map for 314 La Espiral Minor Subdivision (MS 2023-005 Urban Lot Split) if it substantially conforms to all of the requirements. Resolution No. 45-24 (Attachment A) formalizes the City Council’s action with related findings, including approving the Parcel Map.

NEXT STEPS:

The Parcel Map will be fully executed by the city, subject to non-substantive corrections if so required by city attorney, and then processed for recordation with the County Clerk Recorder.

F.4
Packet Pg. 30
FISCAL IMPACT:

The owners of 314 La Espiral (MS 2023-005 Urban Lot Split) have paid required fees and reimbursed city for staff and consultant review costs.

ATTACHMENTS:

A. Resolution 45-24 Approval of SB9 Parcel Map 314 La Espiral B. 314 La Espiral Parcel Map
Respectfully Submitted by:

Scott Christie
Public Works Director
Prepared By: Ryan Okane, Senior Engineer
Approved by:

F.4
Packet Pg. 31
Resolution 45-24

Page 1 of 2 ends

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

Approving Parcel Map ) Resolution No. 45-24
for Subdivision MS 2023-005 )
Urban Lot Split )
at 314 La Espiral, Orinda, CA )
)
WHEREAS, an application for a SB9 Urban Lot Split subdivision Tentative Map of property at 314 La Espiral, Orinda California was deemed complete by the Orinda Planning Department on June 26, 2024; and
WHEREAS, the owners have submitted the Final Map for Subdivision MS 2023- 005 and in is process of being signed by all parties required to execute the certificates on the map (owner and surveyor), together with all supplementary documents and fees, to the Public Works Department for filing in accordance with the Subdivision Map Act and Title 16 of the Orinda Municipal Code and the tentative map conditions of approval; and
WHEREAS, the Public Works Department has determined that the Parcel Map, all associated documents and fees are satisfactory in accordance with the Subdivision Map Act and Title 16 of the Orinda Municipal Code and the tentative map conditions of approval; and
WHEREAS, the City Council of the City of Orinda finds that the Final Parcel Map for Subdivision MS 2023-005, substantially conforms with the previously-approved Tentative Parcel Map and must now be approved pursuant to state law.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Orinda approves the Parcel Map for Subdivision MS 2023-005 with all supplementary documents.

Approved and adopted by the City Council of the City of Orinda at a regular meeting on October 1, 2024.

F.4.a
Packet Pg. 32
Attachment: Resolution 45-24 Approval of SB9 Parcel Map 314 La Espiral (3436 : Approving 314 La Espiral Urban Lot Split) Resolution 45-24

Page 2 of 2 ends

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:
_________________________________
Darlene K. Gee, Mayor
ATTEST:
_________________________________
Sheri Marie Smith, City Clerk
F.4.a
Packet Pg. 33
Attachment: Resolution 45-24 Approval of SB9 Parcel Map 314 La Espiral (3436 : Approving 314 La Espiral Urban Lot Split) F.4.b
Packet Pg. 34
Attachment: 314 La Espiral Parcel Map (3436 : Approving 314 La Espiral Urban Lot Split) F.4.b
Packet Pg. 35
Attachment: 314 La Espiral Parcel Map (3436 : Approving 314 La Espiral Urban Lot Split) City Council
Staff Report
Agenda Item: F.5
Date: October 1, 2024
Department: City Council
AGENDA TITLE: Annual Investment Policy Review And Authorize City Treasurer for Fiscal Year 2024-25
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 15, 2023, the City Council adopted Resolution 50-23 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 the City Council no later than June 30th.

The review of the policy by the Finance Advisory Committee occurred at both the July 31 and September 25, 2024, meetings. 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. In May 2024 the City opened a new money market collateralized bank deposit account with Mechanics Bank which is managed by staff.

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 annual 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 F.5
Packet Pg. 36
tuning of the investment portfolio are considered part of prudent investment management. This passive investment strategy is 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 the market rate of 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 State Law. A redlined changes to Orinda’s Investment Policy is included as Attachment B. The main changes are highlighted below:

1. VIII. Authorized Financial Institutions: Updated the list of institutions eligible to transact business with the City

2. IX. Investment Pools/Mutual Funds: Included the questions recommended from industry best practices and can be found in the CMTA model investment policy.

3. XII. Authorized Investments: Throughout the authorized securities, the word “total” has been included where missing to enhance the continuity of the policy.

4. XII. Authorized Investments – 15. Asset-Backed, Mortgage-Backed…: Even though language in the bullet points states no issuer limitation on any mortgagebacked security issued by Treasury and Agency securities, the asset description has been updated to specifically remove the criteria from those backed by Treasury and Agency securities in accordance with the most recent change to CGC from Senate Bill 882.

5. XV. Risk Management and Diversification – Mitigating Credit Riak in the Portfolio:

Made the bullet point regarding the maximum investment of 5% per issuer more concise.

6. XVII. Performance Evaluation: Included language on the possibility to update the benchmark.

7. XVIII. Reporting: Senate Bill 1489 clarified that entities have 45 days following the quarter end to submit a quarterly report to the legislative body of the agency.

8. Glossary of Investment Terms: Terms have been added and removed as it has been recommended by CMTA investment policy reviewers that the glossary shall only include terms used throughout the investment policy itself.

The results of the review were shared and discussed by the FAC at their July 31 and September 25, 2024, meetings. During that review, at the September 25th meeting, 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) F.5
Packet Pg. 37
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, incorporating the 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:

A. Resolution 45-24 Adoption of Investment Policy
B. Attachment B- Redlined Investment Policy
Respectfully Submitted by:

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

F.5
Packet Pg. 38

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

Annual Review of Investment Policy)
And Delegation of Authority ) Resolution No. 45-24
To Make Investments )
WHEREAS, the City Council on August 15, 2023, adopted Resolution 50-23 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 September 25, 2024, the Finance Advisory Committee reviewed the Investment Policy and recommended that minor edits be made 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.

BEITFURTHER 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: Gee, Iverson, Malkani, Miller, Riley NOES: COUNCILMEMBERS: None
ABSENT: COUNCILMEMBERS: None
Darlene Gee, Mayor
ATTEST:

Sheri Smith, City Clerk
F.5.a
Packet Pg. 39
Attachment: Resolution 45-24 Adoption of Investment Policy (3440 : Annual Investment Policy Review And Authorize City Treasurer 2024)

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.5.a
Packet Pg. 40
Attachment: Resolution 45-24 Adoption of Investment Policy (3440 : Annual Investment Policy Review And Authorize City Treasurer 2024) 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.

F.5.a
Packet Pg. 41
Attachment: Resolution 45-24 Adoption of Investment Policy (3440 : Annual Investment Policy Review And Authorize City Treasurer 2024) 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.5.a
Packet Pg. 42
Attachment: Resolution 45-24 Adoption of Investment Policy (3440 : Annual Investment Policy Review And Authorize City Treasurer 2024) 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."
F.5.a
Packet Pg. 43
Attachment: Resolution 45-24 Adoption of Investment Policy (3440 : Annual Investment Policy Review And Authorize City Treasurer 2024) 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.

F.5.a
Packet Pg. 44
Attachment: Resolution 45-24 Adoption of Investment Policy (3440 : Annual Investment Policy Review And Authorize City Treasurer 2024) 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.

F.5.a
Packet Pg. 45
Attachment: Resolution 45-24 Adoption of Investment Policy (3440 : Annual Investment Policy Review And Authorize City Treasurer 2024) 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.

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.5.a
Packet Pg. 46
Attachment: Resolution 45-24 Adoption of Investment Policy (3440 : Annual Investment Policy Review And Authorize City Treasurer 2024) 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%.

F.5.a
Packet Pg. 47
Attachment: Resolution 45-24 Adoption of Investment Policy (3440 : Annual Investment Policy Review And Authorize City Treasurer 2024) 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.

F.5.a
Packet Pg. 48
Attachment: Resolution 45-24 Adoption of Investment Policy (3440 : Annual Investment Policy Review And Authorize City Treasurer 2024) 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.5.a
Packet Pg. 49
Attachment: Resolution 45-24 Adoption of Investment Policy (3440 : Annual Investment Policy Review And Authorize City Treasurer 2024) 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.

F.5.a
Packet Pg. 50
Attachment: Resolution 45-24 Adoption of Investment Policy (3440 : Annual Investment Policy Review And Authorize City Treasurer 2024) 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
F.5.a
Packet Pg. 51
Attachment: Resolution 45-24 Adoption of Investment Policy (3440 : Annual Investment Policy Review And Authorize City Treasurer 2024) 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.

F.5.a
Packet Pg. 52
Attachment: Resolution 45-24 Adoption of Investment Policy (3440 : Annual Investment Policy Review And Authorize City Treasurer 2024) 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.

F.5.a
Packet Pg. 53
Attachment: Resolution 45-24 Adoption of Investment Policy (3440 : Annual Investment Policy Review And Authorize City Treasurer 2024) 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.

F.5.a
Packet Pg. 54
Attachment: Resolution 45-24 Adoption of Investment Policy (3440 : Annual Investment Policy Review And Authorize City Treasurer 2024) 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.

F.5.a
Packet Pg. 55
Attachment: Resolution 45-24 Adoption of Investment Policy (3440 : Annual Investment Policy Review And Authorize City Treasurer 2024) 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.

F.5.a
Packet Pg. 56
Attachment: Resolution 45-24 Adoption of Investment Policy (3440 : Annual Investment Policy Review And Authorize City Treasurer 2024) 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.

F.5.a
Packet Pg. 57
Attachment: Resolution 45-24 Adoption of Investment Policy (3440 : Annual Investment Policy Review And Authorize City Treasurer 2024) 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.

F.5.a
Packet Pg. 58
Attachment: Resolution 45-24 Adoption of Investment Policy (3440 : Annual Investment Policy Review And Authorize City Treasurer 2024) F.5.b
Packet Pg. 59
Attachment: Attachment B- Redlined Investment Policy (3440 : Annual Investment Policy Review And Authorize City Treasurer 2024)

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
.............................................................................................................56 XI. DELIVERY, SAFEKEEPING AND CUSTODY .........................................................................................6 XII. AUTHORIZED INVESTMENTS
.................................................................................................................67 XIII. MAXIMUM MATURITY ………………………………………………………………………………………11 XIV. PROHIBITED INVESTMENT VEHICLES AND PRACTICES
...............................................................112 XV. RISK MANAGEMENT AND DIVERSIFICATION ...................................................................................12 XVI. REVIEW OF INVESTMENT PORTFOLIO ..........................................................................13 XVII. PERFORMANCE EVALUATION...........................................................................................................13 XVIII. REPORTING
....................................................................................................................134 XIX. REVIEW OF INVESTMENT POLICY .....................................................................................................14

GLOSSARY OF INVESTMENT TERMS
........................................………………….…………………………….156 F.5.b
Packet Pg. 60
Attachment: Attachment B- Redlined Investment Policy (3440 : Annual Investment Policy Review And Authorize City Treasurer 2024) 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.

F.5.b
Packet Pg. 61
Attachment: Attachment B- Redlined Investment Policy (3440 : Annual Investment Policy Review And Authorize City Treasurer 2024) 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.

IV. DELEGATION OF AUTHORITY
Authority to manage the City's investment program is derived from California Government Code, Sections 41006 for City Treasurers and 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.

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.5.b
Packet Pg. 62
Attachment: Attachment B- Redlined Investment Policy (3440 : Annual Investment Policy Review And Authorize City Treasurer 2024) 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."
F.5.b
Packet Pg. 63
Attachment: Attachment B- Redlined Investment Policy (3440 : Annual Investment Policy Review And Authorize City Treasurer 2024) 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 (California 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 California 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

F.5.b
Packet Pg. 64
Attachment: Attachment B- Redlined Investment Policy (3440 : Annual Investment Policy Review And Authorize City Treasurer 2024) 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).

In accordance with Section 53601.5, institutions eligible to transact investment business with the City include:
• Institutions licensed be the state and proof of FINRA certification as a broker-dealer, as defined in Section 25004 of the Corporations Code.
• Primary government dealers as designated by the Federal Reserve Bank of New York and non-primary government dealers.
• Nationally or state-chartered banks.
• Savings association or federal association (as defined in Section 5102 of the Financial Code).
• The Federal Reserve Bank of New York.
• Direct issuers of securities eligible for purchase.

F.5.b
Packet Pg. 65
Attachment: Attachment B- Redlined Investment Policy (3440 : Annual Investment Policy Review And Authorize City Treasurer 2024) 6 The City shall conduct a thorough investigation of any pool or mutual fund prior to making an investment, and on a continual basis thereafter. Annually, the Administrative Services Director shall seek responses to the following questions from any investment pool or mutual fund in which the City invests:
• A description of eligible investment securities, and a written statement of investment policy and objectives.
• A description of interest calculations and how it is distributed, and how gains and losses are treated.
• A description of how the securities are safeguarded (including the settlement processes), and how often the securities are priced and the program audited. • A description of who may invest in the program, how often, what size deposit and withdrawal are allowed.
• A schedule for receiving statements and portfolio listings. • Are reserves, retained earnings, etc. utilized by the pool/fund? • A fee schedule, and when and how it is assessed.
• Is the pool/fund eligible for bond proceeds and/or will it accept such proceeds? 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.

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 F.5.b
Packet Pg. 66
Attachment: Attachment B- Redlined Investment Policy (3440 : Annual Investment Policy Review And Authorize City Treasurer 2024) 7 securities are not deliverable.

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

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 issuer 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 is met:
• The securities are rated in a rating category of "A" or its equivalent or better by at least one nNationally rRecognized sStatistical rRating oOrganization (“NRSRO”).
• No more than 5% of the total portfolio may be invested in any issuer. • No more than 30% of the total portfolio may be in Municipal Securities. • The maximum maturity does not exceed five years.

No more than 30% of the total 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 F.5.b
Packet Pg. 67
Attachment: Attachment B- Redlined Investment Policy (3440 : Annual Investment Policy Review And Authorize City Treasurer 2024) 8 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 isdoes not exceed 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 total portfolio may be invested in any Agency/GSE issuer. The maximum maturity does not exceed five years. • No more than 20% of the total portfolio may be invested in 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 better by at least one NRSRO; or long-term debt obligations which are rated in the "A" category or its equivalent or better by at least one NRSRO.
• No more than 40% of the total portfolio may be invested in Bankers' Acceptances.
• No more than 5% of the total 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 total 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 total portfolio will be invested in a combination of federally insured and collateralized time deposits.

F.5.b
Packet Pg. 68
Attachment: Attachment B- Redlined Investment Policy (3440 : Annual Investment Policy Review And Authorize City Treasurer 2024) 9 • The maximum maturity does not exceed five years.

8. CERTIFICATE OF DEPOSIT PLACEMENT SERVICE DEPOSITS(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 total portfolio may be invested in any issuer. • The maximum maturity does not exceed five years.

10. COLLATERALIZED BANK 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.

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

F.5.b
Packet Pg. 69
Attachment: Attachment B- Redlined Investment Policy (3440 : Annual Investment Policy Review And Authorize City Treasurer 2024) 10 • No more than 10% of the outstanding commercial paper issued by any single issuer.
• No more than 5% of the total 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 5% of the total 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 FROM ISSUERS NOT DEFINED IN SECTIONS 3 AND 4 OF THE AUTHORIZED INVESTMENTS SECTION OF THIS POLICY, 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 total 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.

F.5.b
Packet Pg. 70
Attachment: Attachment B- Redlined Investment Policy (3440 : Annual Investment Policy Review And Authorize City Treasurer 2024) 11 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

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 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 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 F.5.b
Packet Pg. 71
Attachment: Attachment B- Redlined Investment Policy (3440 : Annual Investment Policy Review And Authorize City Treasurer 2024) 12 investment at least three months prior to that investment.

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 deposited with or invested in securities issued by of any single issuer unless otherwise specified in this policyper 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 F.5.b
Packet Pg. 72
Attachment: Attachment B- Redlined Investment Policy (3440 : Annual Investment Policy Review And Authorize City Treasurer 2024) 13 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.

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.

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 F.5.b
Packet Pg. 73
Attachment: Attachment B- Redlined Investment Policy (3440 : Annual Investment Policy Review And Authorize City Treasurer 2024) 14 Council. The compliance status shall be reported as part of the quarterly reporting.

XVIII. REPORTING

QUARTERLY REPORTS
Quarterly investment reports will be submitted by the Administrative Services Director to the City Council within 45 days after the end of the quarter. 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):

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.

F.5.b
Packet Pg. 74
Attachment: Attachment B- Redlined Investment Policy (3440 : Annual Investment Policy Review And Authorize City Treasurer 2024) 15 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.

F.5.b
Packet Pg. 75
Attachment: Attachment B- Redlined Investment Policy (3440 : Annual Investment Policy Review And Authorize City Treasurer 2024) 16 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.

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.

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.

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.

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

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.

F.5.b
Packet Pg. 76
Attachment: Attachment B- Redlined Investment Policy (3440 : Annual Investment Policy Review And Authorize City Treasurer 2024) 17 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.

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.

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

FIDUCIARY. A person or organization that acts on behalf of another person(s) or organization that puts their clients’ interest ahead of their own as they are bound both legally and ethically to act in the other’s best interests.

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.

F.5.b
Packet Pg. 77
Attachment: Attachment B- Redlined Investment Policy (3440 : Annual Investment Policy Review And Authorize City Treasurer 2024) 18 LOCAL AGENCY INVESTMENT FUND (LAIF). A voluntary investment fund open to government entities and certain non-profit organizations in California that is managed by the State Treasurer’s Office.

LOCAL GOVERNMENT INVESTMENT 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.