Finance & Governance Committee
June 14, 2022

Written materials relating to an item on this agenda that are distributed to the legislative bodies within 72 hours before the item is to be considered at its regularly scheduled meeting will be made available for public inspection at the City Clerk’s Office, 300 West Third Street 4th Floor during customary business hours. Agenda reports are also on the City of Oxnard web site at www.oxnard.org.

In compliance with the Americans with Disabilities Act, if you require special assistance to participate in a meeting, please contact the City Clerk’s Office at 385-7803. Notice at least 72 hours prior to the meeting will enable the City to reasonably arrange for your accessibility to the meeting.

Agenda Item time estimates: (Presentation / Committee Discussion / Public Comment) AGENDA

OXNARD CITY COUNCIL

FINANCE AND GOVERNANCE COMMITTEE
Council Chambers, 305 West Third Street
June 14, 2022
Regular Meeting - 5:00 to 6:30 PM
Zoom details to call-in for public comment during a meeting:

1. Dial Phone Number: (888) 475-4499

2. Enter Meeting ID: 825 5663 3479

3. Passcode: 285457
If you wish to speak during public comments or a particular item on the agenda, please sign-on by following the zoom calling in steps listed above. Once the Mayor calls for public speakers, press *9 to raise your hand to inform the City Clerk you would like to speak during the public speaking section for that particular item on the agenda, while in the zoom waiting room.

The public may view the meeting from home on Spectrum channel 10, Frontier channel 35, or YouTube at Youtube.com/oxnardnews.

Video recordings of the meeting are typically available online following the meeting at the City’s website at www.oxnard.org/city- meetings.
*Please see the link for the Measure M pre-recorded presentation video for each item listed on this agenda.

YOU MAY PARTICIPATE IN THE MEETING IN THE FOLLOWING WAYS:

1. ATTEND THE MEETING AT THE LOCATION LISTED ABOVE: Submit a speaker card to the City Clerk.

2. EMAIL COMMENTS OR SIGN UP TO SPEAK REMOTELY BEFORE THE MEETING a. Submit a request to speak by no later than 3 p.m. on the day of the meeting by using the form available at www.oxnard.org/citymeetings.
b. Submit an email to [email protected] no later than 3 p.m. on the day of the meeting (indicate the agenda item number in the subject line). All email correspondence will be forwarded to the City Council prior to the start of the meeting and made part of the legislative record. c. Contact the City Clerk’s Office at (805) 385-7803 to submit your request.

3. PROVIDING PUBLIC COMMENTS REMOTELY DURING THE MEETING a. To provide public comment during the meeting dial (888) 475-4499 and enter the Meeting ID and Passcode listed above as the Zoom details for this meeting. When the Mayor announces the particular item on the agenda you want to speak on, press *9 to raise your hand while in the zoom waiting room. Once called on, press *6 to unmute your phone.
b. Public comments on agenda items will be taken following the announcement of the item. After the item is announced, members of the public may register or otherwise be recognized for the purpose of providing public comment.

Detailed participation instructions can be found at www.oxnard.org/city-meetings. 1 OXNARD CITY COUNCIL: FINANCE & GOVERNANCE COMMITTEE
June 14, 2022 - Page 2
* The City has filed pre-election and post-election lawsuits regarding the validity of Measure M.

A. ROLL CALL, POSTING OF AGENDA, FLAG SALUTE

B. PUBLIC COMMENTS ON ITEMS NOT ON THE AGENDA

A person may address the legislative body only on matters not appearing on the agenda and within the subject matter jurisdiction of the legislative body. Speaker requests shall be submitted as set forth on the first page of this agenda. Speakers are limited to three minutes. After 30 minutes, if all speakers have not had the opportunity to speak, the remaining speakers will be given an opportunity to speak prior to adjournment of the meeting. The legislative body cannot enter into a detailed discussion or take action on any items presented during public comments at this time. Such items may only be referred to the City Manager/Executive Director/Secretary for administrative action or scheduled on a subsequent agenda for discussion. Persons wishing to speak on public hearing items should do so at the time of the hearing.

C. CONSENT AGENDA

1. City Clerk Department
SUBJECT: Approval of Minutes.

RECOMMENDATION: That the Finance & Governance Committee approve the minutes of the May 24, 2022 regular meeting as presented.

Contact: Rose Chaparro, (805) 385-7805
D. REPORTS

1. City Treasurer
SUBJECT: Adoption of the Investment Policy. (0/5/5)

RECOMMENDATION: That the Finance and Governance Committee recommend the City Council adopt the FY 2022-23 investment policy for the City.

Please click the following link to view the required Measure M pre-recorded presentation video: https://youtu.be/rB82KTKM_hY
Contact: Phillip Molina, (805) 385-7808

2. City Manager Department
SUBJECT: City of Oxnard Whistleblower Summary Update. (5/5/5)

RECOMMENDATION: That the Finance and Governance Committee recommends that the City Council receive and file an update on whistleblower matters. (Presentation will be live upon consultant's request).

Contact: Shiri Klima, (805) 385-7487

3. Information Technology Department
SUBJECT: Ratify the Microsoft Corporation Enterprise Agreement #808445 for Information Technology Software Licensing. (0/5/5)

RECOMMENDATION: That the Finance and Governance Committee recommend that City Council ratify the City’s Microsoft Corporation Volume Licensing Enterprise Agreement #808445 and authorize the Mayor to execute Purchase Order #8617 with SoftwareOne, Inc. for a not-to- exceed amount of $365,062.08 for the continued use and purchase of Microsoft products for the June 1, 2020, to May 31, 2023, agreement term.
2 OXNARD CITY COUNCIL: FINANCE & GOVERNANCE COMMITTEE
June 14, 2022 - Page 3
Please click the following link to view the required Measure M pre-recorded presentation video: https://youtu.be/45PYyz_G5vk
Contact: Helen Miller, (805)385-7446
E. ITEMS FOR FUTURE AGENDAS

F. ADJOURNMENT

3 FINANCE AND GOVERNANCE COMMITTEE

AGENDA REPORT

CONSENT AGENDA
AGENDA ITEM NO. C.1

DATE: June 14, 2022

TO: Finance & Governance Committee

FROM: Rose Chaparro, City Clerk, (805) 385-7805, [email protected]

SUBJECT: Approval of Minutes.

RECOMMENDATION

That the Finance & Governance Committee approve the minutes of the May 24, 2022 regular meeting as presented.

BACKGROUND

Approval of Minutes.

STRATEGIC PRIORITIES

This agenda item is a routine operational item.

FINANCIAL IMPACT

There is no financial impact.

Prepared by: Rose Chaparro, City Clerk

ATTACHMENTS

1. MINUTES 05 24 2022 Finance & Governance
4 MINUTES

OXNARD CITY COUNCIL

FINANCE AND GOVERNANCE COMMITTEE
Regular Meeting
MAY 24, 2022

A. ROLL CALL, POSTING OF AGENDA, FLAG SALUTE
At 5:03 p.m., Chair John C. Zaragoza called to order the regular meeting of the Oxnard City Council Finance and Governa nce Committee in the City Hall Council Chambers at 305 W. Third Street, Oxnard, California. The City Clerk called the roll and announced the posting of the agenda. Member Gabriel (Gabe) Teran and Chair John C. Zaragoza were present in person.

Member Gabriela Basua was absent.

Staff members present in person were Alexander Nguyen, City Manager; Ashley Golden, Assistant City Manager; Shiri Klima, Deputy City Manager; Stephen M. Fischer, City Attorney; Jason Zaragoza, Deputy City Attorney ; Chelse y Ballot, Deputy C ity Attorney; Betsy George, Chief Financial Officer; Jennifer Yates, Purchasing Manager ; Samantha Shapiro, Project Manager ; Emilio Ramirez, Housing Director ; Albert Ramirez, Assistant Housing Director ; and Rose Chaparro, City Clerk were also present.

Staff members that participated via videoconference were Eden Alomeri, Revenue & Licensing Director & Assistant City Treasurer and Arminda Monares, Billing and Licensing Supervisor.

Eden Casareno, CPA, Partner In-Charge of Attest Services , with Eadie + Payne LLP Auditors, also participated via videoconference.

B. PUBLIC COMMENTS ON ITEMS NOT ON THE AGENDA (None received.)

C. CONSENT AGENDA

1. City Clerk Department SUBJECT: Approval of Minutes.

RECOMMENDATION: That the Finance & Governance Committee approve the minutes of the May 10, 2022 regular meeting as presented.

It was moved by Member Teran, seconded by Member Zaragoza, to approve the Information/Consent item as presented. VOTE: Teran and Zaragoza voted in favor; the motion carried 2-0. Councilmember Basua was absent.

D. REPORTS

1. Finance Department SUBJECT: 2021 Single Audit Report and Update on the Corrective Action Plan (CAP). (10/5/5)

RECOMMENDATION: That the Finance and Governance Committee receive the 2021 Single Audit Report from the audit firm Eadie + Payne, and an update on the Corrective Action Plan (CAP) from staff, and give authorization to forward both presentations to City Council.

Eadie + Pyne presentation will be live per consultant's request.

5 MAY 24, 2022 OXNARD CITY COUNCIL PAGE 2

FINANCE & GOVERNANCE COMMITTEE

Betsy George, Chief Financial Officer, introduced Eden Casareno, CPA, Partner In -Charge of Attest Services, with Eadie + Payne LLP , who presented and answered the Committee’s questions. No public comments were received. Discussion ensued among the Committee and staff.

It was moved by Member Teran, seconded by Chair Zaragoza, to approve the recommended action as presented. VOTE: Teran and Zaragoza voted in favor; the motion carried 2-0. Member Basua was absent.

2. Finance Department SUBJECT: Annual Delegation of Investment Authority. (0/5/5) RECOMMENDATION: That the Finance and Governance Committee recommend the City Council adopt a resolution delegating investment authority to the City Treasurer for FY 2022-23.

Betsy George, Chief Financial Officer, presented and answered the Committee’s questions. No public comments were received. Discussion ensued among the Committee and staff.

It was moved by Chair Zaragoza, seconded by Member Teran , to approve the recommended action as presented. VOTE: Teran and Zaragoza voted in favor; the motion carried 2-0. Member Basua was absent.

3. City Manager Department
SUBJECT: Updates to Citizen Advisory Group (CAG) Bylaws and Efforts to Develop Effective and Efficient Processes for CAGs. (0/5/10)

RECOMMENDATION: That the Finance and Governance Committee:

1. Receive a report on proposed changes to the Citizen Advisory Group (CAG) Bylaws for the following CAGs: Community Relations Commission, Cultural Arts Commission, Commission on Homelessness, Library Board, Parks, Recreation and Community Services Commission, and the Senior Services Commission; and

2. Recommend that the City Council adopt a resolution:
a. Establishing uniform CAG bylaws; and
b. Repealing previous CAG bylaws.

Ashley Golden, Assistant City Manager, introduced Samantha Shapiro, Project Manager, who presented and answered the Committee’s questions. Jason Zaragoza, Deputy City Attorney and Chelsey Ballot, Deputy City Attorney , w ere also available to a nswer quest ions. P ublic comments were received from Ronald Arruejo. Discussion ensued among the Committee and staff.

It was moved by Chair Zaragoza, seconded by Me mber Teran, to approve the recommended action as presented. VOTE: Teran and Zaragoza voted in favor; the motion carried 2-0. Member Basua was absent.

4. Billing and Licensing Department
SUBJECT: Agreement with Infosend, Inc. for Utility Bill and Business Tax Form Printing, Inserting and Mailing Services. (0/10/10)
RECOMMENDATION: That Finance and Governance Committee recommend that City Council approve and authorize the Mayor to execute a three-year agreement with Infosend, Inc. for utility 6 MAY 24, 2022 OXNARD CITY COUNCIL PAGE 3

FINANCE & GOVERNANCE COMMITTEE

bill and business tax form printing, inserting and mailing services in an amount not to exceed $996,534 to commence on July 1, 2022, through June 30, 2025.

Eden Alomeri, Revenue & Licensing Director and Assistant City Treasurer , introduced Arminda Monares, Billing and Licensing Supervisor , who presented and answered the Committee’s questions. No public comments were received. Discussion ensued among the Committee and staff.

It was moved by Member Teran, seconded by Chair Zaragoza, to approve the recommended action as presented. VOTE: Teran and Zaragoza voted in favor; the motion carried 2-0. Member Basua was absent.

5. Finance Department SUBJECT: Increase of $100,000 to the Not to Exceed (NTE) Amount for Amazon Business. (0/5/5)

RECOMMENDATION: The Finance and Governance Committee recommend that City Council ratify the City's not to exceed limit for Amazon Business by adding $100,000 (for a new total of $300,000) for the continued purchase of products through June 30, 2022.

Betsy George, Chief Financial Officer, introduced Jennifer Yates, Purchasing Manager , who presented and answered the Committee’s questions. No public comments were received. Discussion ensued among the Committee and staff.

It was moved by Chair Zaragoza, seconded by Member Teran , to approve the recommended action as presented. VOTE: Teran and Zaragoza voted in favor; the motion carried 2-0. Member Basua was absent.

6. Housing Department
SUBJECT: Housing Authority Low Rent Public Housing and Housing Choice Voucher Program Budgets for Fiscal Year 2022-23. (0/5/5)

RECOMMENDATION: That the Finance and Governance Committee recommend that the Board of Commissioners of the Housing Authority of the City of Oxnard:

1. Adopt a resolution approving the recommended $6,872,555 operating budget for the Low Rent Public Housing Program for Fiscal Year 22-23, as presented for each project area, and approve and authorize the use of $575,652 of unrestricted cash to fund the projected deficit; and

2. Adopt a resolution approving the recommended $25,112,313 operating budget for the Housing Choice Voucher Program for Fiscal Year 22-23 and approve and authorize the use of $285,349 of unrestricted cash to fund the projected deficit.

Emilio Ramirez, Housing Director , presented and answered the Committee’s questions. No public comments were received. Discussion ensued among the Committee and staff.

It was moved by Member Teran , seconded by Chair Zaragoza, to approve the recommended action as presented. VOTE: Teran and Zaragoza voted in favor; the motion carried 2-0. Member Basua was absent.

7. Housing Department SUBJECT: Housing Authority Investment Policy. (0/5/0) RECOMMENDATION: That the Finance and Governance Committee recommend that the Board of 7 MAY 24, 2022 OXNARD CITY COUNCIL PAGE 4

FINANCE & GOVERNANCE COMMITTEE

Commissioners of the Housing Authority of the City of Oxnard adopt a resolution adopting an investment policy for the Housing Authority of the City of Oxnard for FY 2022-2023.

Emilio Ramirez, Housing Director , presented and answered the Committee’s questions. No public comments were received. Discussion ensued among the Committee and staff.

It was moved by Member Teran , seconded by Chair Zaragoza, to approve the recommended action as presented. VOTE: Teran and Zaragoza voted in favor; the motion carried 2-0. Member Basua was absent.

E. ITEMS FOR FUTURE AGENDAS (No requests were made.)

F. ADJOURNMENT
There being no further business on the agenda, and without objection, Chair Zaragoza adjourned the meeting at 6:02 p.m.

ROSE CHAPARRO JOHN C. ZARAGOZA
City Clerk Chair

8 FINANCE AND GOVERNANCE COMMITTEE

AGENDA REPORT

REPORTS
AGENDA ITEM NO. D.1

DATE: June 14, 2022

TO: Finance & Governance Committee

FROM: Phillip Molina, City Treasurer, (805) 385-7808, [email protected]

SUBJECT: Adoption of the Investment Policy. (0/5/5)

RECOMMENDATION

That the Finance and Governance Committee recommend the City Council adopt the FY 2022-23 investment policy for the City.

Please click the following link to view the required Measure M pre-recorded presentation video: https://youtu.be/rB82KTKM_hY

BACKGROUND

Government Code section 53646 provides that the City Treasurer may annually render to the City Council a statement of investment policy, which the Council shall consider at a public meeting. The Treasurer last submitted an investment policy to the City Council on June 29, 2021. The policy is attached hereto, and the attached resolution adopts this policy. The policy is, except for the date of expected adoption, unchanged.

The City of Oxnard's investment portfolio is conservative and planned with safety of principal as the first objective, followed by provision for funds when needed. Yield is important after these two objectives have been met. The portfolio is diversified as to type of investment, financial institution and maturity. Securities with maturities of more than thirty days are delivered to the City's third-party safekeeping account. City funds are consolidated in the pooled money investment fund to provide maximum investment opportunity. Analysis of cash-flow provides data for anticipated income, clearance of outstanding checks, and dates for extraordinary expenditures to manage liquidity requirements, like the $20 million-plus annual prepayment to CalPERS every July for the City's unfunded accrued liability that fiscal year, which saves the General Fund hundreds of thousands of dollars.

STRATEGIC PRIORITIES

This agenda item supports the Organizational Effectiveness strategy. The purpose of the Organizational Effectiveness strategy is to reinforce, stabilize, improve, and strengthen the organizational foundation of the City in order to build a modern, high-functioning City government that effectively and efficiently supports the operating departments in providing high-quality services and programs for our residents and businesses.

FINANCIAL IMPACT

There is no financial impact.
9 Prepared by: Phillip Molina, City Treasurer

ATTACHMENTS

1. FY 22-23 Treasurer's Authority Investment Policy-DRAFT

2. Treasurer's Investment Policy Adoption Resolution FY 22-23

3. Oxnard City Treasure’s investment policy 2022 2023 Presentation 10

City of Oxnard, California
2022-23 Investment Policy
Adopted June 30, 2022
This statement is intended to provide guidelines for the prudent investment of surplus funds of the City of Oxnard and to outline the policies for maximizing the efficiency of the City’s cash management system.

It is the policy of the City to invest public funds in a manner that will provide high investment return with the maximum security while meeting the daily cash flow demands of the entity and conforming to all State and local statutes governing the investment of public funds. The references to the City Treasurer shall include his or her designee. This policy does not include retirement, retiree health care savings/trust/plan(s) or deferred compensation plans.

This investment policy applies to the City’s pooled investment fund, which includes the General Fund, special revenue funds, capital project funds, enterprise funds, trust and agency funds, and internal service funds. This policy is generally applicable to bond proceeds with consideration given to specific provisions of each issuance. Reports of the investment of bond proceeds are issued monthly by the trustee and may be included in the City Treasurer’s monthly report of the pooled investment fund.

3.0 PRUDENCE-Reference Ca. Govt. Code 53600.3 Investments shall be made with judgment and care – under circumstances then prevailing – which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for the investment, considering the probable safety of their capital as well as the probable income to be derived.

The standard of prudence to be used by City officials responsible for the investment of public funds shall be the “prudent investor” standard and shall be applied in the context of managing the overall City portfolio of funds. Investment officers acting in accordance with written procedures and the investment policy and exercising due diligence shall be relieved of personal responsibility for an individual’s security risk or market price changes, provided deviations from expectations are reported in a timely fashion and appropriate action is taken to control adverse developments.

4.0 INVESTMENT OBJECTIVES The City’s cash management system is designed to accurately monitor and forecast revenues and expenditures thus enabling the City Treasurer to invest funds to the fullest extent possible. The City Treasurer maintains a diversified investment portfolio to accomplish the primary objectives of safety, liquidity and yield (in that order of priority).

Safety – The safety or risk associated with an investment refers to the potential loss of principal, accrued interest or a combination of these. The City seeks to mitigate credit risk by prequalifying and continuously monitoring financial institutions with which it will do business and by careful scrutiny of the credit worthiness of the investment instruments as well as the institutions. Such resources as FDIC bank ratings, Sheshunoff, Fitch, Moody’s and Standard and Poor’s rating services may be utilized for this review. The City seeks to mitigate interest rate risk through diversification of instruments as well as maturities.

Liquidity – The City investment portfolio will be structured with sufficient liquidity to allow the City to meet its anticipated cash requirements. This will be accomplished through diversity of instruments to include those with active secondary markets, those which match maturities to expected cash needs and the State Local Agency Investment Fund (LAIF) with immediate withdrawal provisions.

Yield – A competitive market rate of return is the third objective of the City investment program after the fundamental requirements of safety and liquidity have been met.

5.0 DELEGATION OF AUTHORITY California Government Code Section 53607 provides the authority for 11

the legislative body of the local agency to invest the funds of the local agency or to delegate that authority to the treasurer of the local agency. Effective January 1, 1997, such delegation is to be reviewed annually and may be renewed by the City Council (Appendix 3, Section 53607).

City Council – Under City of Oxnard Resolution No. 10455, the City Council has authorized the City Treasurer to invest City funds in accordance with California Government Code Section 53600, et. seq. The City Treasurer will include review of the delegation of authority in the annual presentation of the investment policy to the City Council.

City Treasurer – The execution of investment transactions on a daily basis will be conducted by the City Treasurer. The Assistant City Treasurer will execute transactions only as directed by the City Treasurer in the absence of the City Treasurer. The City Treasurer has established a system of controls and a segregation of responsibilities of investment functions to assure maintenance of internal control over the investment function. The City Treasurer may propose amendments to the City’s investment policy, guidelines and procedures at any time in order to carry out the duties as chief investment officer for the City. Such amendments shall be reviewed by the City’s Investment Review Committee and considered by the City Council at a public meeting.

6.0 ETHICS AND AVOIDANCE OF CONFLICTS OF INTEREST Investment officials shall refrain from personal business activity that could conflict with proper execution and management of the policy and the investment program, or which could impair their ability to make impartial decisions. Investment officials must provide a public disclosure document by February 1 of each year or when material interest in financial institutions or personal investment position(s) require it. Furthermore, investment officials must refrain from undertaking personal investment transactions with the same individual(s) employed by the financial institution with whom business is conducted on behalf of the City. The City Treasurer is governed by the Political Reform Act of 1974 regarding disclosure of material financial interests.

7.0CA Govt. Code 53601.5 The City Treasurer shall transact business only with the banks, savings and loan and properly registered securities dealers.

Authorization – The City may conduct business with major registered securities broker-dealers and with dealers designated “Primary” by the Federal Reserve provided all the following criteria are met. The Treasurer or his or her designee will maintain a list of approved financial institutions authorized to provide investment services to the public agency in the State of California. These may include “primary” dealers or regional dealers that qualify under Securities & Exchange Commission Rule 15C3-1 (uniform net capital rule). Broker-dealers must:
a. Have offices located within the State of California; b. Be adequately capitalized;
c. Make markets in securities appropriate to the City’s needs; d. Agree to abide by the conditions set forth in the City’s investment policy; The City Treasurer shall investigate all institutions which wish to do business with the City and shall require that each financial institution complete and return the appropriate questionnaire and required documentation. An annual review of the financial condition and registration of qualified bidders will be conducted by the City Treasurer.

No public deposit shall be made except in a qualified public depository as established by the established State laws. All financial institutions and broker/dealers who desire to conduct investment transactions with the public agency must supply the Treasurer (or Chief Financial Officer) with the following: audited financial statements, proof of NASD certification, trading resolution, proof of State of California registration, completed broker/dealer questionnaire, certification of having read the Public Agency’s 12

investment policy and depository contracts.

Ratings – With the exception of the Local Agency Investment Fund (LAIF) and U.S. Treasury and Government Agency issues, investments shall be placed only in the those instruments and institutions rated favorably as determined by the City Treasurer with the assistance of bank rating services and nationally recognized rating services (FDIC, Fitch’s, Moody's, Standard & Poor's, Sheshunoff performance rating, etc.).

8.0 AUTHORIZED AND SUITABLE INVESTMENTS
California Government Code Section 53601 (Appendix 3) defines eligible securities for the investment of surplus funds by local agencies. Surplus funds of the City of Oxnard are invested in compliance with this statute and as further limited in this Investment Policy.

U.S. Government - United States Treasury Bills, Notes, and Bonds are backed by the full faith and credit of the United States Government. There shall be no limitation as to the percentage of the portfolio invested in this category. Maturities are limited to a maximum of five years.

U.S. Agencies - The purchase of instruments of, or issued by, a federal agency or a United States government-sponsored enterprise will be limited to a maximum maturity of five years. Such agencies include, but are not limited to, the Federal Farm Credit Bank, Federal Home Loan Bank, Federal Home Loan Mortgage Corporation, Student Loan Marketing Association, Tennessee Valley Authority, and the Federal National Mortgage Corporation.

Municipal Bonds, Notes or Evidences of lndebtedness - Bonds issued by the local agency, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by the local agency or by a department, board, agency, or authority of the local agency. Registered State warrants or treasury notes or bonds of this state, including bonds payable solely out of the revenues from a revenue producing property owned, controlled, or operated by the State or by a department, board, agency, or authority of the State.

Bonds, notes, warrants, or other evidences of indebtedness of any local agency within this State include bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by the local agency, or by a department, board, agency, or authority of the local agency. A maximum of 15 percent of the portfolio may be so invested.

Bankers’ Acceptances - Bills of exchange or time drafts drawn on and accepted by commercial banks which are eligible for purchase by the Federal Reserve System are known as bankers’ acceptances. Purchases of these instruments may not exceed 180 days to maturity or 40 percent of an agency's surplus funds. A maximum of 30 percent may be invested in the bankers’ acceptances of any one commercial bank.

Commercial Paper - This short-term unsecured promissory note is issued to finance short term credit needs. Eligible paper is that which is ranked "Pl" by Moody's Investor Services or "Al" by Standard & Poor's or Fitch’s, issued by a domestic corporation having assets in excess of $500,000,000, and having an "A" or better rating on issuer's debt. Purchases of commercial paper may not exceed 270 days or represent more than 10 percent of the outstanding paper of an issuing corporation. Commercial paper purchases will be limited to 15 percent of the City's portfolio.

Negotiable Certificates of Deposit (NCDs) - Allowable NCDs are issued by a nationally or State-chartered bank or a State or federal association or by a State-licensed branch of a foreign bank. The City Treasurer may invest up to 30 percent of surplus funds in NCDs limited to institutions rated "Aa" or better by Moody's or "AA-" or better by Standard & Poor's CD Rating Services. A rating equivalent to FDIC rating of “One” or “Two” or a Sheshunoff performance rating of A or better is required for those institutions not rated by Moody's, Fitch’s or Standard & Poor's. NCDs are considered liquid, trading actively in the 13

secondary market.

Certificates of Deposit (CDs) - Certificates of deposit or "time deposits" of up to $250,000 are federally insured. Beyond that amount, these CDs must be collateralized with the collateral held separately from the issuing institution. The value of the investment must have collateral of at least 110 percent if government securities, or collateral of at least 150 percent if mortgage-backed securities. Statute does not limit CDs, however, this Investment Policy shall limit such investments to a maximum of 30 percent of the portfolio (GC 53601(i)). In addition, time deposits shall be placed in institutions meeting all capital requirements and which maintain a rating equivalent to FDIC rating of “One” or “Two” or a Sheshunoff performance rating of A or better.

Repurchase Agreements - The City may invest in repurchase agreements with banks and dealers of primary dealer status recognized by the Federal Reserve with which the City has entered into a master repurchase contract which specifies terms and conditions of repurchase agreements. The maturity of repurchase agreements shall not exceed 90 days. The market value of securities used as collateral for repurchase agreements shall be monitored by the City Treasurer's office and will not be allowed to fall below 102 percent of the value of the repurchase agreement. In order to conform with provisions of the Federal Bankruptcy Code, which provide for the liquidation of securities held as collateral for repurchase agreements, the only securities acceptable as collateral shall be eligible negotiable certificates of deposit, bankers' acceptances, commercial paper, or securities that are direct obligations of or that are fully guaranteed by the United States or any agency of the United States. These eligible securities are further defined by California Government Code Section 53651.

Medium Term Notes - A maximum of 30 percent of the City's portfolio may be invested in medium-term notes issued by corporations organized and operating within the United States. Note maturities may not exceed five years. Securities eligible for investment must be rated in a rating category of "A" or its equivalent or better by a nationally recognized rating service (i.e., Moody's or Standard & Poor's).

Mutual Funds - Shares of beneficial interest (mutual funds) issued by diversified management companies investing in securities/obligations authorized by California Government Code Section 53600, et. seq., and complying with Section 53601, are permitted investments. Section 53601(l) further defines requirements.

A maximum of 20 percent of the portfolio may be so invested.

Local, State, or County Agency Investment Fund - The Local Agency Investment Fund (LAIF) has been established by the State Treasurer for the benefit of local agencies. The City may invest up to the maximum permitted by LAIF and the Ventura County Investment Pool operated under the control of the County Treasurer, and CALTRUST consistent with California Government Code Section 53635.

Ineligible Investments - Investments not described herein, including but not limited to common stocks and financial futures contracts and options, are prohibited in this fund.

City Inter-fund Loans - Funds may be invested in loans to provide specific funding to City programs, provided no loan shall violate any limitations prescribed by California law. Legal requirements shall include but not be limited to those listed in Government Code section 66006(b)(1)(G) for development impact fees and in Government Code section 66013(d)(5) for water connection, sewer connection and capacity charge fees.

9.0 COLLATERAL
The issue of collateral requirements is addressed in California Government Code Section 53652. All active and inactive deposits must be secured at all times with eligible securities in securities pools pursuant to Sections 53656 and 53657. Eligible securities held as collateral shall have a market value in excess of the total amount of all deposits of a depository as follows:
14

government securities, at least 10 percent in excess
mortgage backed securities, at least 50 percent in excess letters of credit, at least 5 percent in excess.

FDIC coverage as the Official Custodian of a public unit is insured up to $250,000 per bank and all active and inactive deposits above the FDIC insured amount must be collateralized to be secured.

10.0 INVESTMENT POOLS/MUTUAL FUNDS
A thorough investigation of the pool/fund is required prior to investing, and on a continual basis. There shall be a questionnaire developed which will answer the following general questions:
a) A description of eligible investment securities, and a written statement of investment policy and objectives.
b) A description of interest calculations and how it is distributed, and how gains and losses are treated. c) A description of how the securities are safeguarded (including the settlement processes), and how often the securities are priced and the program audited. d) A description of who may invest in the program, how often, what size deposit and withdrawal are allowed.
e) A schedule for receiving statements and portfolio listings. f) Are reserves, retained earnings, etc. utilized by the pool/fund? g) A fee schedule, and when and how is it assessed.
h) Is the pool/fund eligible for bond proceeds and/or will it accept such proceeds?

11.0 DIVERSIFICATION
The City's portfolio will be suitably diversified by type and institution in an effort to reduce portfolio risk while attaining market average rates.

Security Type and Institution - U.S. Treasury securities and authorized pools, and any portfolio or institutional limits shall comply with California Government Code. Investments are further limited by specific language relating to each investment type as stated in Section 8 of this Policy.

Maximum Maturities - To the extent possible, the City Treasurer will attempt to match investments with anticipated cash flow requirements. The City's portfolio will not be directly invested in securities which mature more than five years from the date of purchase. Reserve funds may be invested in securities exceeding the five years as allowed by California Law (maturity of such investments should coincide as nearly as practicable with expected use of funds).

12.0 INTERNAL CONTROLS
A system of internal controls will be maintained to assure compliance with Federal and State regulations, City Council direction, and prudent cash management procedures.

Investment Review Committee - The City Treasurer shall form the investment committee, whose members may include the City Manager, and Finance Director, or their designated alternates plus members of the public whose interest and knowledge can provide sound advice to the Investment Review Committee tasked with quarterly review of procedures and adherence to this Investment Policy.

Investment Portfolio Guidelines - Guidelines (Appendix No. 2) have been established for procedures within the City Treasurer's Office to assure internal investment controls and a segregation of responsibilities of investment functions.

Annual Audit - The City's portfolio is included in the annual review of the City's financial management 15

performed by an independent (as defined by FASB and GASB) outside audit firm.

13.0 PERFORMANCE STANDARDS
The investment portfolio will be designed to attain at least a market-average rate of return during budgetary and economic cycles. Whenever possible, and consistent with risk limitations as defined herein and prudent investment principles, the Treasurer shall seek to augment returns above the market average rate of return as shown on the average CMT (Constant Maturity Treasury) whose maturity most closely matches the average maturity of the portfolio. In addition, the City portfolio will be compared with LAIF and the goal is to maintain a higher positive annual yield than LAIF's annual yield.

14.0 REPORTING-Reference: CA Govt. Code 53646(b)
The City Treasurer shall provide investment information to City Council.

Periodic Reports - The City Treasurer will provide detailed reports of the investments in the pooled investment fund portfolio on a monthly basis to the City Council, City Manager, Chief Financial Officer, and City Clerk. Within thirty days of the end of each quarter, these reports will be provided with additional information such as market pricing. This report shall include the type of investment, issuer, date of maturity, par and dollar amount invested on all securities, investments and moneys held by the local agency, and shall additionally include a description of any of the local agency’s funds, investments, or programs, that are under the management of contracted parties, including lending programs. With respect to all securities held by the local agency, and under management of any outside party that is not also a local 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.

Annual Report - This Investment Policy will be presented annually following the close of the fiscal year, to the City Council for approval.

Financial Statements per GASB #31 - City Treasurer will provide the portfolio's market value gains/losses to Finance to be incorporated in the fiscal year-end balance sheet.

Financial Statements per GASB #40 - Effective June 30, 2005, additional disclosure is required. City Treasurer will provide detailed maturity and rating information to Finance to be incorporated in the Comprehensive Annual Financial Report (CAFR).

15.0 SAFEKEEPING AND CUSTODY –Reference: CA Govt. Code 53608 All security transactions, including collateral for repurchase agreements, entered into by the City Treasurer shall be conducted on a delivery-versus-payment (DVP) basis. Securities will be held by a third party custodian designated by the Treasurer and evidenced by safekeeping receipts.

16.0 INVESTMENT POLICY ADOPTION –Reference: CA Govt. Code 53646 The City of Oxnard’s investment policy shall be adopted by resolution of the City Council. The policy shall be reviewed annually by the City Council and any modifications made thereto by the City Treasurer must be presented to the City Council.

The City Treasurer shall establish written investment policy procedures for the operation of the investment program consistent with this policy. The procedures should include reference to: safekeeping, master repurchase agreements, wire transfer agreements, banking service contracts and collateral/depository agreements. Such procedures shall include explicit delegation of authority to persons responsible for investment transactions. No person, or officer may engage in an investment transaction except as provided under the terms of this policy and the procedures established by the City of Oxnard. 16

APPENDIX
No. 1 Glossary
No. 2 Investment Portfolio Guidelines
No. 3 California Government Code Sections related to Investment of Public Funds City of Oxnard, California
2022-23 Investment Policy
Adopted June 30, 2022
APPENDIX NO. 1: GLOSSARY
AGENCIES: Federal agency securities.

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

BASIS POINT: One one-hundredth of a percent (i.e. 0.01 %) BROKER: A broker brings buyers and sellers together for a commission paid by the initiator of the transaction or by both sides; he does not position. In the money market, brokers are active in markets in which banks buy and sell money and in inter-dealer markets.

CERTIFICATE OF DEPOSIT (CD): A time deposit with a specific maturity evidenced by a certificate. Large- denomination CDs are typically negotiable.

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

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

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

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

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

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

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

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

FEDERAL CREDIT AGENCIES: Agencies of the Federal government set up to supply credit to various classes of institutions and individuals, e.g., S&Ls, small business firms, students, farmers, farm 17

cooperatives, and exporters.

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

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

FEDERAL HOME LOAN BANKS (FHLB): The institutions that regulate and lend to savings and loan associations. The Federal Home Loan Banks play a role analogous to that played by the Federal Reserve Banks vis-a-vis member commercial banks.

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

GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA or Ginnie Mae): Securities guaranteed by GNMA and issued by mortgage bankers, commercial banks, savings and loans associations and other institutions. Security holder is protected by full faith and credit of the U.S. Government. Ginnie Mae securities are backed by FHA, VA or FMHM mortgages. The term “pass-throughs” is often used to describe Ginnie Mae investment instruments.

LIQUIDITY: A liquid asset is one that can be converted easily and rapidly into cash without a substantial loss of value. In the money market, a security is said to be liquid if the spread between bid and asked prices is narrow and reasonable size can be done at those quotes.

LOCAL AGENCY INVESTMENT FUND (LAIF): Funds from local governmental units may be remitted to the California State Treasurer for deposit in this special fund for the purpose of investment.

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

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

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

MONEY MARKET: The market in which short-term debt instruments (bills, commercial paper, bankers' acceptances, etc.) are issued and traded.

PORTFOLIO: Collection of securities held by an investor.

PRIMARY DEALER: A group of government securities dealers that submit daily reports of market activity and positions and monthly financial statements to the Federal Reserve Bank of New York and are subject to its informal oversight. Primary dealers include Securities and Exchange Commission (SEC) registered securities broker-dealers, banks, and a few unregulated firms. 18

RATE OF RETURN: The yield obtainable on a security based on its purchase price or its current market price. This may be the amortized yield to maturity on a bond or the current income return.

RATING AGENCIES: S&P Probably the best known of the Big Three rating agencies, Standard and Poor’s (S&P) is a company providing financial publishing, information and media to the world’s capital markets.

It is owned by the McGraw-Hill Companies. S&P also publishes stock market indices, the most well- known of which is the S&P 500.

S&P’s ratings from the best quality borrowers to the lowest are: AAA, AA, A, BBB, BB, B, CCC, CC, C, and D. Investment grade is BBB and above. S&P uses plus and minus to add intermediate designations to these ratings.

Moody’s Moody’s started in 1909 as a publishing company, issuing railroad bond guides called Moody’s Manuals. It later expanded its coverage to municipal and commercial bonds, and is now called Moody's Investment Services.

Moody’s uses the following ratings: Aaa, Aa, A, Baa, Ba, B, Caa, Ca, and C. Numbers are added for intermediate designations, such as Baa1, Baa2, etc. Investment grade is considered to be Baa and above; anything below is considered speculative, or junk.

Fitch Owned by a French Holding Company, Fimalac SA, Fitch operates internationally and offers financial research as well as credit rating services. The smallest of the Big Three, Fitch uses the same ratings scale as S&P.

Conflicts of Interest of rating agencies
Credit ratings agencies receive fees from the issuers of the securities they rate. In the time leading up to the 2008 financial crisis, S&P, Moody's and Fitch all gave consistently high ratings to mortgage-backed securities created by the investment banks who were paying them. This overrating of risky debt instruments contributed to the financial bubble and subsequent decline. Congress has proposed new regulation of these agencies to increase competition and ensure independence in this market REPURCHASE AGREEMENT (RP OR REPO): A holder of securities sells these securities to an investor with an agreement to repurchase them at a fixed price on a fixed date. The security "buyer" in effect lends the "seller" money for the period of the agreement, and the terms of the agreement are structured to compensate him for this. Dealers use RP extensively to finance their positions. Exception: When the Federal Reserve Bank is said to be doing RP, it is lending money that is, increasing bank reserves.

SAFEKEEPING: A service to customers rendered by banks for a fee whereby securities and valuables of all types and descriptions are held in the banks' vaults for protection.

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

SECURITIES & EXCHANGE COMMISSION: Agency created by Congress to protect investors in securities transactions by administering securities legislation.

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

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

TREASURY BONDS: Long-term U.S. Treasury securities having initial maturities of more than ten years.

TREASURY NOTES: Intermediate term coupon bearing U.S. Treasury securities having initial maturities of from one to ten years.
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YIELD: The rate of annual income return on an investment, expressed as a percentage. (a) INCOME YIELD is obtained by dividing the current dollar income by the current market price for the security. (b) NET YIELD or YIELD TO MATURITY is the current income yield minus any premium above par or plus any discount from par in purchase price, with the adjustment spread over the period from the date of purchase to the date of maturity of the bond.

UNIFORM NET CAPITAL RULE: Securities and Exchange Commission requirement that member firms as well as nonmember broker-dealers in securities maintain a maximum ratio of indebtedness to liquid capital of 15 to 1; also called net capital rule and net capital ratio. Indebtedness covers all money owed to a firm, including margin loans and commitments to purchase securities, one reason new public issues are spread among members of underwriting syndicates. Liquid capital includes cash and assets easily converted into cash.
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City of Oxnard, California
2022-23 Investment Policy
Adopted June 30, 2022
APPENDIX NO. 2: OXNARD CITY TREASURER INVESTMENT PORTFOLIO GUIDELINES A. INTRODUCTION. These guidelines are established to direct and control investment activities in such a manner to assure that the goals established in the Investment Policy are attained.

B.GENERAL FACTORS. Several factors must be considered in preparation for effective portfolio management.

1. Cash Forecast. The cash flow of the City shall be updated daily with an analysis of cash receipts and expenditures. A close working relationship with City Departments having a significant impact on cash flow is maintained to maximize the efficiency of the City's cash management system.

2. Pooled Cash. Whenever practical, the City's cash should be consolidated into one bank account and invested on a pooled concept basis. Interest earnings are allocated according to specific general ledger cash balances. No City bank account may be opened without the knowledge and consent of the City Treasurer.

3. Authorized Institutions. A list of institutions, which meet the criteria of the Investment Policy and have been authorized by the City Treasurer to do business with the City, will be maintained and regularly updated. Investment transactions will be executed only with approved broker/dealers, banks, and savings and loans.

4. Preservation of Portfolio Value. Yield standards are in place in an effort to maintain earnings consistent with the market average rate of return.

5. Golden Rule of Portfolio Management. Investment instrument characteristics should be known and understood before a purchase of the investment instrument. And recognizing that there are no firm and steadfast rules (strategies) for portfolio management due to the fact that investor expectations change by the day, hour and minute, and because of this market instability, prudent principles of fiscal management must be applied.

C. STRATEGY: Strategy refers to the plan of action for managing financial resources in the most advantageous manner. The City Treasurer uses the following elements in developing strategy.

1. Economic Forecasts. Economic forecast information developed by economists and financial experts, obtained through bankers and brokers, is used to assist the City Treasurer with the formulation of an investment strategy for the City.

2. Investment Implementation. Investment transactions will be executed in conformance with anticipated cash flow requirements, economic conditions, and interest rate trends and must be consistent with the established Investment Policy.

3. Yield Enhancement. Investment techniques will be utilized which increase yield and maintain a fully invested position.

D. INVESTMENT PROCEDURES. The City Treasurer has developed internal investment procedures to 21

provide for effective cash management. Segregation of responsibilities is maintained to assure an adequate system of internal control over the investment function.

1. Diversification. The fund should consist of a mix of various types of securities, issuers, and maturities.

2. Competitive Bids. Purchase and sale of securities shall be made on the basis of competitive bids and offers with a minimum of two quotes being obtained, when practical.

3. Investment Transactions. Investment transactions will be authorized by the City Treasurer. In his/her absence, the Assistant City Treasurer will execute transactions as prescribed by the City Treasurer prior to his/her absence. In the event of unexpected absence and unavailability by the City Treasurer, the Assistant City Treasurer will transact within established guidelines.

4. Electronic Transactions. Whenever possible, the City will use preformatted wire transfers and ACH debits to restrict the transfer of funds to preauthorized accounts only. All electronic transactions require an initiator plus an approval by an authorized employee. Authenticity is verified on next business day for each electronic transaction.

5. Safekeeping. Securities purchased from broker/dealers (on which maturity is greater than 30 days) shall be held in third party safekeeping with the Trust Department of Union Bank of California acting as third party trustee. All such purchases will be on a delivery versus-payment basis. Evidence of account for certificates of deposit will be issued in the City's name and held in City Treasurer's vault.

E. INVESTMENT CRITERIA. All investments will be made in compliance with Federal, State, and Local laws governing the investment of City funds, and in accordance with the City Treasurer's Investment Policy.

1. Maturity of Investment. Investments longer than one year may be made if consistent with the City's cash flow needs, related intent to hold until maturity, unless market conditions demand otherwise.

Securities may be sold prior to maturity for cash flow purposes or to otherwise enhance the portfolio. If the rating of any depository declines to an unacceptable level prior to the maturity of an investment of City funds, the investment will be matured at the earliest possible opportunity. If the rating drops below the allowable level of any one of the rating services, the investment will be sold if no significant loss of principal is involved.

Such sales will be determined by the City Treasurer.

2. Certificate of Deposit Evaluation.
(a) Time Certificates of Deposit shall be evaluated in terms of FDIC coverage. For deposits in excess of the insured maximum of $250,000, approved collateral shall be required at the percentage above market value as specified by California Government Code Section 53652 and/or 53651. (b) Negotiable Certificates of Deposit shall be evaluated in terms of the credit worthiness of the issuer as these deposits are uninsured and uncollateralized promissory notes.

F. PRIMARY GOALS. As set forth in the Investment Policy, the primary goals for the City of Oxnard are safety, liquidity, and yield, in that priority order.

1. Safety. The safety/risk associated with an investment refers to the potential loss of principal, accrued interest, or a combination of these. The City of Oxnard employs investment instruments considered to be safe. The primary duty of the City Treasurer is to protect the cash and investments placed in her trust on behalf of the citizens of the community.

2. Liquidity. Liquidity refers to the ability to convert investment holdings to cash immediately with no loss of principal or accrued interest. This quality of investment is important should an unexpected need for funds occur.
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3. Yield. Yield is the dollar earnings the investment provides. Yield becomes important only after the fundamental requirements of safety and liquidity have been met.

G. INTERNAL CONTROL OF INVESTMENTS. Investment transactions are controlled through distribution of responsibilities within the Treasurer's Office by the following procedures:

1. The Treasurer initiates each investment transaction.

2. Details of the investment are recorded on a trade slip and given to the account clerk responsible for encoding the trade details into the electronic investment system. The same account clerk produces a verification letter mailed to the institution receiving the investment. A copy of the letter is forwarded to the transferring bank.

3. The transaction record is then delivered to a designee who enters the transaction on the cash balance spread sheet.

4. At month end the balances on the spreadsheet, maintained by a designee, must balance with the portfolio balance maintained independently by the electronic system clerk.

5. Each business day, the Treasurer's Office receives an electronic report from the City's bank. This report contains checking account balances, a listing of debits and credits, overnight investments and a record of wired funds. This information is incorporated into the monthly checking account statement which provides a cross reference.

6. The Treasurer's Office forwards copies of all investment and transfer letters to General Accounting daily. General Accounting also receives copies of all bank statements, daily print-outs, bank reconciliations, credit/debit memorandums, journal vouchers, and tapes coordinating Treasurer's Receipts with deposits.

7. The Treasurer's report of balances and summary of investments and earnings is compiled monthly and distributed to the City Council, City Manager, City Clerk and Chief Financial Officer. A report, including market values, will be provided on a quarterly basis within 30 days of the close of the last month of each quarter. A report of portfolio gains/losses will be provided to the Chief Financial Officer at fiscal year-end for inclusion in year-end balance sheet reporting.

These Guidelines are provided to all staff members of the City Treasurer's Office having involvement with the investment procedures in any way. It is intended that these guidelines define the details of current practice set forth by the Investment Policy.
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City of Oxnard, California
2022-23 Investment Policy
Adopted June 30, 2022
APPENDIX NO. 3: STATE OF CALIFORNIA GOVERNMENT CODE INVESTMENT PROVISIONS 53600.

As used in this article, “local agency” means county, City, City and county, including a chartered City or county, school district, community college district, public district, county board of education, county superintendent of schools, or any public or municipal corporation. (Amended by Stats. 1987, Ch. 887, Sec. 2.)
53600.3.

Except as provided in subdivision (a) of Section 27000.3, 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. (Amended by Stats. 1996, Ch. 749, Sec. 4. Effective January 1, 1997.) 53600.5.

When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, the primary objective of a trustee shall be to safeguard the principal of the funds under its control. The secondary objective shall be to meet the liquidity needs of the depositor. The third objective shall be to achieve a return on the funds under its control.
(Amended by Stats. 1996, Ch. 749, Sec. 5. Effective January 1, 1997.) 53600.6.

The Legislature hereby finds that the solvency and creditworthiness of each individual local agency can impact the solvency and creditworthiness of the state and other local agencies within the state.

Therefore, to protect the solvency and creditworthiness of the state and all of its political subdivisions, the Legislature hereby declares that the deposit and investment of public funds by local officials and local agencies is an issue of statewide concern.
(Added by Stats. 1995, Ch. 784, Sec. 13. Effective January 1, 1996.) 53601.

This section shall apply to a local agency that is a city, a district, or other local agency that does not pool money in deposits or investments with other local agencies, other than local agencies that have the same governing body. However, Section 53635 shall apply to all local agencies that pool money in deposits or 24

investments with other local agencies that have separate governing bodies. The legislative body of a local agency having moneys in a sinking fund or moneys in its treasury not required for the immediate needs of the local agency may invest any portion of the moneys that it deems wise or expedient in those investments set forth below. A local agency purchasing or obtaining any securities prescribed in this section, in a negotiable, bearer, registered, or nonregistered format, shall require delivery of the securities to the local agency, including those purchased for the agency by financial advisers, consultants, or managers using the agency’s funds, by book entry, physical delivery, or by third-party custodial agreement. The transfer of securities to the counterparty bank’s customer book entry account may be used for book entry delivery.

For purposes of this section, “counterparty” means the other party to the transaction. A counterparty bank’s trust department or separate safekeeping department may be used for the physical delivery of the security if the security is held in the name of the local agency. Where this section specifies a percentage limitation for a particular category of investment, that percentage is applicable only at the date of purchase. Where this section does not specify a limitation on the term or remaining maturity at the time of the investment, no investment shall be made in any security, other than a security underlying a repurchase or reverse repurchase agreement or securities lending agreement authorized by this section, that at the time of the investment has a term remaining to maturity in excess of five years, unless the legislative body has granted express authority to make that investment either specifically or as a part of an investment program approved by the legislative body no less than three months prior to the investment:
(a) Bonds issued by the local agency, including bonds payable solely out of the revenues from a revenue- producing property owned, controlled, or operated by the local agency or by a department, board, agency, or authority of the local agency.
(b) United States Treasury notes, bonds, bills, or certificates of indebtedness, or those for which the faith and credit of the United States are pledged for the payment of principal and interest. (c) Registered state warrants or treasury notes or bonds of this state, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by the state or by a department, board, agency, or authority of the state.
(d) 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.
(e) Bonds, notes, warrants, or other evidences of indebtedness of a local agency within this state, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by the local agency, or by a department, board, agency, or authority of the local agency.
(f) Federal agency or United States government-sponsored enterprise obligations, participations, or other instruments, including those issued by or fully guaranteed as to principal and interest by federal agencies or United States government-sponsored enterprises.
(g) Bankers’ acceptances otherwise known as bills of exchange or time drafts that are drawn on and accepted by a commercial bank. Purchases of bankers’ acceptances shall not exceed 180 days’ maturity or 40 percent of the agency’s moneys that may be invested pursuant to this section. However, no more than 30 percent of the agency’s moneys may be invested in the bankers’ acceptances of any one commercial bank pursuant to this section.

This subdivision does not preclude a municipal utility district from investing moneys in its treasury in a manner authorized by the Municipal Utility District Act (Division 6 (commencing with Section 11501) of the Public Utilities Code).
(h) Commercial paper of “prime” quality of the highest ranking or of the highest letter and number rating as provided for by a nationally recognized statistical rating organization (NRSRO). The entity that issues the commercial paper shall meet all of the following conditions in either paragraph (1) or (2):
(1) The entity meets the following criteria:
(A) Is organized and operating in the United States as a general corporation. 25

(B) Has total assets in excess of five hundred million dollars ($500,000,000). (C) Has debt other than commercial paper, if any, that is rated in a rating category of “A” or its equivalent or higher by an NRSRO.
(2) The entity meets the following criteria:
(A) Is organized within the United States as a special purpose corporation, trust, or limited liability company.
(B) Has programwide credit enhancements including, but not limited to, overcollateralization, letters of credit, or a surety bond.
(C) Has commercial paper that is rated “A-1” or higher, or the equivalent, by an NRSRO.

Eligible commercial paper shall have a maximum maturity of 270 days or less. Local agencies, other than counties or a city and county, that have less than one hundred million dollars ($100,000,000) of investment assets under management, may invest no more than 25 percent of their moneys in eligible commercial paper. Local agencies, other than counties or a city and county, that have one hundred million dollars ($100,000,000) or more of investment assets under management may invest no more than 40 percent of their moneys in eligible commercial paper. A local agency, other than a county or a city and a county, may invest no more than 10 percent of its total investment assets in the commercial paper and the medium-term notes of any single issuer. Counties or a city and county may invest in commercial paper pursuant to the concentration limits in subdivision (a) of Section 53635. (i) Negotiable certificates of deposit issued by a nationally or state-chartered bank, a savings association or a federal association (as defined by Section 5102 of the Financial Code), a state or federal credit union, or by a federally licensed or state-licensed branch of a foreign bank. Purchases of negotiable certificates of deposit shall not exceed 30 percent of the agency’s moneys that may be invested pursuant to this section. For purposes of this section, negotiable certificates of deposit do not come within Article 2 (commencing with Section 53630), except that the amount so invested shall be subject to the limitations of Section 53638. The legislative body of a local agency and the treasurer or other official of the local agency having legal custody of the moneys are prohibited from investing local agency funds, or funds in the custody of the local agency, in negotiable certificates of deposit issued by a state or federal credit union if a member of the legislative body of the local agency, or a person with investment decisionmaking authority in the administrative office manager’s office, budget office, auditor-controller’s office, or treasurer’s office of the local agency also serves on the board of directors, or any committee appointed by the board of directors, or the credit committee or the supervisory committee of the state or federal credit union issuing the negotiable certificates of deposit. (j) (1) Investments in repurchase agreements or reverse repurchase agreements or securities lending agreements of securities authorized by this section, as long as the agreements are subject to this subdivision, including the delivery requirements specified in this section. (2) Investments in repurchase agreements may be made, on an investment authorized in this section, when the term of the agreement does not exceed one year. The market value of securities that underlie a repurchase agreement shall be valued at 102 percent or greater of the funds borrowed against those securities and the value shall be adjusted no less than quarterly. Since the market value of the underlying securities is subject to daily market fluctuations, the investments in repurchase agreements shall be in compliance if the value of the underlying securities is brought back up to 102 percent no later than the next business day.
(3) Reverse repurchase agreements or securities lending agreements may be utilized only when all of the following conditions are met:
(A) The security to be sold using a reverse repurchase agreement or securities lending agreement has been owned and fully paid for by the local agency for a minimum of 30 days prior to sale. (B) The total of all reverse repurchase agreements and securities lending agreements on investments owned by the local agency does not exceed 20 percent of the base value of the portfolio. (C) The agreement does not exceed a term of 92 days, unless the agreement includes a written codicil guaranteeing a minimum earning or spread for the entire period between the sale of a security using a reverse repurchase agreement or securities lending agreement and the final maturity date of the same security.
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(D) Funds obtained or funds within the pool of an equivalent amount to that obtained from selling a security to a counterparty using a reverse repurchase agreement or securities lending agreement shall not be used to purchase another security with a maturity longer than 92 days from the initial settlement date of the reverse repurchase agreement or securities lending agreement, unless the reverse repurchase agreement or securities lending agreement includes a written codicil guaranteeing a minimum earning or spread for the entire period between the sale of a security using a reverse repurchase agreement or securities lending agreement and the final maturity date of the same security. (4) (A) Investments in reverse repurchase agreements, securities lending agreements, or similar investments in which the local agency sells securities prior to purchase with a simultaneous agreement to repurchase the security may be made only upon prior approval of the governing body of the local agency and shall be made only with primary dealers of the Federal Reserve Bank of New York or with a nationally or state-chartered bank that has or has had a significant banking relationship with a local agency. (B) For purposes of this chapter, “significant banking relationship” means any of the following activities of a bank:
(i) Involvement in the creation, sale, purchase, or retirement of a local agency’s bonds, warrants, notes, or other evidence of indebtedness.
(ii) Financing of a local agency’s activities.
(iii) Acceptance of a local agency’s securities or funds as deposits. (5) (A) “Repurchase agreement” means a purchase of securities by the local agency pursuant to an agreement by which the counterparty seller will repurchase the securities on or before a specified date and for a specified amount and the counterparty will deliver the underlying securities to the local agency by book entry, physical delivery, or by third-party custodial agreement. The transfer of underlying securities to the counterparty bank’s customer book-entry account may be used for book-entry delivery. (B) “Securities,” for purposes of repurchase under this subdivision, means securities of the same issuer, description, issue date, and maturity.
(C) “Reverse repurchase agreement” means a sale of securities by the local agency pursuant to an agreement by which the local agency will repurchase the securities on or before a specified date and includes other comparable agreements.
(D) “Securities lending agreement” means an agreement under which a local agency agrees to transfer securities to a borrower who, in turn, agrees to provide collateral to the local agency. During the term of the agreement, both the securities and the collateral are held by a third party. At the conclusion of the agreement, the securities are transferred back to the local agency in return for the collateral. (E) For purposes of this section, the base value of the local agency’s pool portfolio shall be that dollar amount obtained by totaling all cash balances placed in the pool by all pool participants, excluding any amounts obtained through selling securities by way of reverse repurchase agreements, securities lending agreements, or other similar borrowing methods.
(F) For purposes of this section, the spread is the difference between the cost of funds obtained using the reverse repurchase agreement and the earnings obtained on the reinvestment of the funds. (k) Medium-term notes, defined as all corporate and depository institution debt securities with a maximum remaining maturity of five years or less, issued by corporations 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. Notes eligible for investment under this subdivision shall be rated in a rating category of “A” or its equivalent or better by an NRSRO. Purchases of medium-term notes shall not include other instruments authorized by this section and shall not exceed 30 percent of the agency’s moneys that may be invested pursuant to this section. A local agency, other than a county or a city and a county, may invest no more than 10 percent of its total investment assets in the commercial paper and the medium-term notes of any single issuer.
(l) (1) Shares of beneficial interest issued by diversified management companies that invest in the securities and obligations as authorized by subdivisions (a) to (k), inclusive, and subdivisions (m) to (q), inclusive, and that comply with the investment restrictions of this article and Article 2 (commencing with Section 53630). However, notwithstanding these restrictions, a counterparty to a reverse repurchase agreement or securities lending agreement is not required to be a primary dealer of the Federal Reserve 27

Bank of New York if the company’s board of directors finds that the counterparty presents a minimal risk of default, and the value of the securities underlying a repurchase agreement or securities lending agreement may be 100 percent of the sales price if the securities are marked to market daily. (2) 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.).
(3) If investment is in shares issued pursuant to paragraph (1), the company shall have met either of the following criteria:
(A) Attained the highest ranking or the highest letter and numerical rating provided by not less than two NRSROs.
(B) 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 subdivisions (a) to (k), inclusive, and subdivisions (m) to (q), inclusive, and with assets under management in excess of five hundred million dollars ($500,000,000). (4) If investment is in shares issued pursuant to paragraph (2), the company shall have met either of the following criteria:
(A) Attained the highest ranking or the highest letter and numerical rating provided by not less than two NRSROs.
(B) 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 five hundred million dollars ($500,000,000). (5) The purchase price of shares of beneficial interest purchased pursuant to this subdivision shall not include commission that the companies may charge and shall not exceed 20 percent of the agency’s moneys that may be invested pursuant to this section. However, no more than 10 percent of the agency’s funds may be invested in shares of beneficial interest of any one mutual fund pursuant to paragraph (1). (m) Moneys held by a trustee or fiscal agent and pledged to the payment or security of bonds or other indebtedness, or obligations under a lease, installment sale, or other agreement of a local agency, or certificates of participation in those bonds, indebtedness, or lease installment sale, or other agreements, may be invested in accordance with the statutory provisions governing the issuance of those bonds, indebtedness, or lease installment sale, or other agreement, or to the extent not inconsistent therewith or if there are no specific statutory provisions, in accordance with the ordinance, resolution, indenture, or agreement of the local agency providing for the issuance. (n) Notes, bonds, or other obligations that are at all times secured by a valid first priority security interest in securities of the types listed by Section 53651 as eligible securities for the purpose of securing local agency deposits having a market value at least equal to that required by Section 53652 for the purpose of securing local agency deposits. The securities serving as collateral shall be placed by delivery or book entry into the custody of a trust company or the trust department of a bank that is not affiliated with the issuer of the secured obligation, and the security interest shall be perfected in accordance with the requirements of the Uniform Commercial Code or federal regulations applicable to the types of securities in which the security interest is granted.
(o) A mortgage passthrough security, collateralized mortgage obligation, mortgage-backed or other pay- through bond, equipment lease-backed certificate, consumer receivable passthrough certificate, or consumer receivable-backed bond. Securities eligible for investment under this subdivision shall be rated in a rating category of “AA” or its equivalent or better by an NRSRO and have a maximum remaining maturity of five years or less. Purchase of securities authorized by this subdivision shall not exceed 20 percent of the agency’s surplus moneys that may be invested pursuant to this section. (p) Shares of beneficial interest issued by a joint powers authority organized pursuant to Section 6509.7 that invests in the securities and obligations authorized in subdivisions (a) to (r), inclusive. Each share shall represent an equal proportional interest in the underlying pool of securities owned by the joint powers authority. To be eligible under this section, the joint powers authority issuing the shares shall have retained an investment adviser that meets all of the following criteria:
(1) The adviser is registered or exempt from registration with the Securities and Exchange Commission. 28

(2) The adviser has not less than five years of experience investing in the securities and obligations authorized in subdivisions (a) to (q), inclusive.
(3) The adviser has assets under management in excess of five hundred million dollars ($500,000,000). (q) United States dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, International Finance Corporation, or Inter-American Development Bank, with a maximum remaining maturity of five years or less, and eligible for purchase and sale within the United States. Investments under this subdivision shall be rated in a rating category of “AA” or its equivalent or better by an NRSRO and shall not exceed 30 percent of the agency’s moneys that may be invested pursuant to this section. (r) Commercial paper, debt securities, or other obligations of a public bank, as defined in Section 57600.

This section shall remain in effect only until January 1, 2026, and as of that date is repealed. (Amended by Stats. 2020, Ch. 235, Sec. 2. (SB 998) Effective January 1, 2021. Repealed as of January 1, 2026, by its own provisions. See later operative version added by Sec. 3 of Stats. 2020, Ch. 235.) 53601.1.

The authority of a local agency to invest funds pursuant to Section 53601 includes, in addition thereto, authority to invest in financial futures or financial option contracts in any of the investment categories enumerated in that section.
(Added by Stats. 1983, Ch. 534, Sec. 3.)
53601.2.

As used in this article, “corporation” includes a limited liability company. (Added by Stats. 2004, Ch. 118, Sec. 18. Effective January 1, 2005.) 53601.5.

The purchase by a local agency of any investment authorized pursuant to Section 53601 or 53601.1, not purchased directly from the issuer, shall be purchased either from an institution licensed by the state as a broker-dealer, as defined in Section 25004 of the Corporations Code, or from a member of a federally regulated securities exchange, from a national or state-chartered bank, from a savings association or federal association (as defined by Section 5102 of the Financial Code) or from a brokerage firm designated as a primary government dealer by the Federal Reserve bank. (Amended by Stats. 2001, Ch. 57, Sec. 2. Effective January 1, 2002.) 53601.6.
(a) A local agency shall not invest any funds pursuant to this article or pursuant to Article 2 (commencing with Section 53630) in inverse floaters, range notes, or mortgage-derived, interest-only strips. (b) (1) Except as provided in paragraph (2), a local agency shall not invest any funds pursuant to this article or pursuant to Article 2 (commencing with Section 53630) in any security that could result in zero- interest accrual if held to maturity. However, a local agency may hold prohibited instruments until their maturity dates. The limitation in this subdivision shall not apply to local agency investments in shares of beneficial interest issued by diversified management companies registered under the Investment Company Act of 1940 (15 U.S.C. Sec. 80a-1 et seq.) that are authorized for investment pursuant to subdivision (l) of Section 53601.
(2) Notwithstanding the prohibition in paragraph (1), a local agency may invest in securities issued by, or backed by, the United States government that could result in zero- or negative-interest accrual if held to maturity, in the event of, and for the duration of, a period of negative market interest rates. A local agency may hold these instruments until their maturity dates. (c) This section shall remain in effect only until January 1, 2026, and as of that date is repealed. 29

(Amended by Stats. 2020, Ch. 235, Sec. 4. (SB 998) Effective January 1, 2021. Repealed as of January 1, 2026, by its own provisions. See later operative version added by Sec. 5 of Stats. 2020, Ch. 235.) 53601.8.

Notwithstanding any other provision of this code, a local agency that has the authority under law to invest funds, at its discretion, may invest a portion of its surplus funds in deposits at a commercial bank, savings bank, savings and loan association, or credit union that uses a private sector entity that assists in the placement of deposits. The following conditions shall apply:
(a) The local agency shall choose a nationally or state-chartered commercial bank, savings bank, savings and loan association, or credit union in this state to invest the funds, which shall be known as the “selected” depository institution.
(b) The selected depository institution may use a private sector entity to help place local agency deposits with one or more commercial banks, savings banks, savings and loan associations, or credit unions that are located in the United States and are within the network used by the private sector entity for this purpose.
(c) The selected depository institution shall request that the local agency inform it of depository institutions at which the local agency has other deposits, and the selected depository institution shall provide that information to the private sector entity.
(d) Any private sector entity used by a selected depository institution to help place its local agency deposits shall maintain policies and procedures requiring all of the following:
(1) The full amount of each deposit placed pursuant to subdivision (b) and the interest that may accrue on each such deposit shall at all times be insured by the Federal Deposit Insurance Corporation or the National Credit Union Administration.
(2) Every depository institution where funds are placed shall be capitalized at a level that is sufficient, and be otherwise eligible, to receive such deposits pursuant to regulations of the Federal Deposit Insurance Corporation or the National Credit Union Administration, as applicable. (3) At the time of the local agency’s investment with a selected depository institution and no less than monthly thereafter, the private sector entity shall ensure that the local agency is provided with an inventory of all depository institutions in which deposits have been placed on the local agency’s behalf, that are within the private sector entity’s network.
(4) Within its network, the private sector entity shall ensure that it does not place additional deposits from a particular local agency with any depository institution identified pursuant to subdivision (c) as holding that local agency’s deposits if those additional deposits would result in that local agency’s total amount on deposit at that depository institution exceeding the Federal Deposit Insurance Corporation or the National Credit Union Administration insurance limit. (e) If a selected depository uses two or more private sector entities to assist in the placement of a local agency’s deposits, the selected depository shall ensure that it does not place additional deposits from a particular local agency with a depository institution if those additional deposits would result in that local agency’s total amount on deposit at that depository institution exceeding the Federal Deposit Insurance Corporation or the National Credit Union Administration insurance limit. (f) The selected depository institution shall serve as a custodian for each such deposit. (g) On the same date that the local agency’s funds are placed pursuant to subdivision (b) by the private sector entity, the selected depository institution shall receive an amount of insured deposits from other financial institutions that, in total, are equal to, or greater than, the full amount of the principal that the local agency initially deposited through the selected depository institution pursuant to subdivision (b). (h) Notwithstanding subdivisions (a) to (g), inclusive, a credit union shall not act as a selected depository institution under this section unless both of the following conditions are satisfied:
(1) The credit union offers federal depository insurance through the National Credit Union 30

Administration.
(2) The credit union is in possession of written guidance or other written communication from the National Credit Union Administration authorizing participation of federally insured credit unions in one or more deposit placement services and affirming that the moneys held by those credit unions while participating in a deposit placement service will at all times be insured by the federal government. (i) It is the intent of the Legislature that this section shall not restrict competition among private sector entities that provide placement services pursuant to this section. (j) The deposits placed pursuant to this section shall be subject to Section 53638 and shall not, in total, exceed 50 percent of the agency’s funds that may be invested for this purpose. (k) This section shall remain in effect until January 1, 2026, and as of that date is repealed. (Amended (as amended by Stats. 2015, Ch. 181, Sec. 1) by Stats. 2019, Ch. 619, Sec. 1. (AB 945) Effective January 1, 2020. Repealed as of January 1, 2026, by its own provisions. See later operative version, as amended by Sec. 3 of Stats. 2019, Ch. 619.)
53602.

The legislative body shall invest only in notes, bonds, bills, certificates of indebtedness, warrants, or registered warrants which are legal investments for savings banks in the State, provided, that the board of supervisors of a county may, by a four-fifths vote thereof, invest in notes, warrants or other evidences of indebtedness of public districts wholly or partly within the county, whether or not such notes, warrants, or other evidences of indebtedness are legal investments for savings banks. (Amended by Stats. 1954, 1st Ex. Sess., Ch. 10.)
53603.

The legislative body may make the investment by direct purchase of any issue of eligible securities at their original sale or after they have been issued.
(Amended by Stats. 1953, Ch. 537.)
53604.

The legislative body may sell, or exchange for other eligible securities, and reinvest the proceeds of, the securities purchased.
(Amended by Stats. 1953, Ch. 537.)
53605.

From time to time, the legislative body shall sell the securities so that the proceeds may be applied to the purposes for which the original purchase money was placed in the sinking fund or the treasury of the local agency.
(Amended by Stats. 1953, Ch. 537.)
53606.

The bonds purchased, which were issued by the purchaser, may be canceled either in satisfaction or sinking fund obligations or otherwise. When canceled, they are no longer outstanding, unless in its discretion, the legislative body holds then uncanceled. While held uncanceled, the bonds may be resold. (Added by Stats. 1949, Ch. 81.)
31

53607.

The authority of the legislative body to invest or to reinvest funds of a local agency, or to sell or exchange securities so purchased, may be delegated for a one-year period by the legislative body to the treasurer of the local agency, who shall thereafter assume full responsibility for those transactions until the delegation of authority is revoked or expires, and shall make a monthly report of those transactions to the legislative body. Subject to review, the legislative body may renew the delegation of authority pursuant to this section each year.
(Amended by Stats. 1996, Ch. 749, Sec. 6. Effective January 1, 1997.) 53608.

The legislative body of a local agency may deposit for safekeeping with a federal or state association (as defined by Section 5102 of the Financial Code), a trust company or a state or national bank located within this state or with the Federal Reserve Bank of San Francisco or any branch thereof within this state, or with any Federal Reserve bank or with any state or national bank located in any City designated as a reserve City by the Board of Governors of the Federal Reserve System, the bonds, notes, bills, debentures, obligations, certificates of indebtedness, warrants, or other evidences of indebtedness in which the money of the local agency is invested pursuant to this article or pursuant to other legislative authority. The local agency shall take from such financial institution a receipt for securities so deposited.

The authority of the legislative body to deposit for safekeeping may be delegated by the legislative body to the treasurer of the local agency; the treasurer shall not be responsible for securities delivered to and receipted for by a financial institution until they are withdrawn from the financial institution by the treasurer.
(Amended by Stats. 1985, Ch. 983, Sec. 17. Effective September 26, 1985.) 53635.
(a) This section shall apply to a local agency that is a county, a city and county, or other local agency that pools money in deposits or investments with other local agencies, including local agencies that have the same governing body. However, Section 53601 shall apply to all local agencies that pool money in deposits or investments exclusively with local agencies that have the same governing body.

This section shall be interpreted in a manner that recognizes the distinct characteristics of investment pools and the distinct administrative burdens on managing and investing funds on a pooled basis pursuant to Article 6 (commencing with Section 27130) of Chapter 5 of Division 2 of Title 3.

A local agency that is a county, a city and county, or other local agency that pools money in deposits or investments with other agencies may invest in commercial paper pursuant to subdivision (h) of Section 53601, except that the local agency shall be subject to the following concentration limits:
(1) No more than 40 percent of the local agency’s money may be invested in eligible commercial paper. (2) No more than 10 percent of the total assets of the investments held by a local agency may be invested in any one issuer’s commercial paper.
(b) Notwithstanding Section 53601, the City of Los Angeles shall be subject to the concentration limits of this section for counties and for cities and counties with regard to the investment of money in eligible commercial paper.
(c) A local agency subject to this section may invest in commercial paper, debt securities, or other 32

obligations of a public bank, as defined in Section 57600. (Amended by Stats. 2019, Ch. 442, Sec. 12. (AB 857) Effective January 1, 2020.) 53656.
(a) At the time the treasurer enters into a contract with the depository pursuant to Section 53649, he or she shall authorize the agent of depository designated by the depository, but including the trust department of the depository only when acceptable to both the treasurer and the depository, to hold securities of the depository in accordance with this article to secure the deposit of the local agency. (b) Only those trust companies and trust departments, or the Federal Home Loan Bank of San Francisco, which have been authorized by the administrator pursuant to Section 53657 shall be authorized by treasurers to act as agents of depository.
(c) The securities are subject to order of the depository in accordance with Section 53654 except when the provisions of subdivision (i) of Section 53661 and Section 53665 are in effect. (d) An agent of depository shall not release any security held to secure a local agency deposit in a depository unless the administrator issues an order authorizing the release where either of the following occurs:
(1) A state or federal regulatory agency has taken possession of the depository. (2) A conservator, receiver, or other legal custodian has been appointed for the depository. (Amended by Stats. 1998, Ch. 1035, Sec. 10. Effective September 30, 1998.) 53657.
(a) No person shall act as an agent of depository unless that person is a trust company located in this state, the trust department of a bank located in this state, or the Federal Home Loan Bank of San Francisco, and is authorized by the administrator to act as an agent of depository. (b) (1) An application for authorization shall be in such form, shall contain such information, shall be signed in such manner, and shall (if the administrator so requires) be verified in such manner, as the administrator may prescribe.
(2) The fee for filing an application for authorization with the administrator shall be five hundred dollars ($500).
(3) If the administrator finds, with respect to an application for authorization, that the applicant is competent to act as an agent of depository and that it is reasonable to believe the applicant will comply with all applicable provisions of this article and of any regulation or order issued under this article, the administrator shall approve the application. If the administrator finds otherwise, the administrator shall deny the application.
(4) When an application for authorization has been approved, the applicant shall file with the administrator an agreement to comply with all applicable provisions of this article and of any regulation or order issued under this article. The agreement shall be in such form, shall contain such provisions, and shall be signed in such manner as the administrator may prescribe. (5) When an application for authorization has been approved, the applicant has complied with paragraph (4), and all conditions precedent to authorizing the applicant to act as agent of depository have been fulfilled, the administrator shall authorize the applicant to act as agent of depository. (Amended by Stats. 1996, Ch. 1063, Sec. 82. Effective January 1, 1997.) 33 RESOLUTION NO. _____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF OXNARD
ADOPTING THE FY 2022-23 INVESTMENT POLICY
WHEREAS, Government Code Section 53646 provides that the City Treasurer may annually render to the City Council a statement of investment policy, which the City Council shall consider at a public meeting.

NOW, THEREFORE, the City Council of the City of Oxnard resolves to adopt the FY 2022-23 Investment Policy attached hereto as Exhibit A.

PASSED AND ADOPTED this 30th day of June, 2022, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
__________________________
John C. Zaragoza, Mayor
ATTEST: APPROVED AS TO FORM:
__________________________ __________________________
Rose Chaparro, City Clerk Stephen M. Fischer, City Attorney 34 Oxnard City Treasure’s
Investment policy for fiscal
Year 2022-2023

35 This investment policy describes the
parameters for investing government funds
and identifies the investment objectives,
preferences or tolerance for risk, constraints on
the investment portfolio, and how the
investment program will be managed and
monitored.
36 This policy includes guidelines on selecting
investment types, investment advisors, interest
rate risk, maturities, and credit quality, along
with collateralization requirements.
37 Consistent with Best Practise, I included guidelines to enhance the separation of duties and reduce the
risk of fraud. This
means no other city official is authorized to make
the final decision about what instrument to invest in
except for
an elected official.
38 I established a process for creating a list of
financial institutions, depositories, and
broker/dealers that will provide the
primary services necessary for executing the
investment program.
39 Current authorized brokers include:

Multi-Bank Securities
Piper Jaffray
Stifel, Nicolaus & Company
Union Bank
Wells Fargo Bank
Alamo Capital
40 This investment policy was first written by me for
the 2017 year. We received notification from the
CMTA (California
Municipal Treasureś Association) that they
identified that policy as the best for the year and
would recommend other cities to use the policy.

That policy has remained the same except for
legal updates when required.
41 Government Code recommends monthly reporting, but
the Council limited the number of times the investment
report is presented to them on the council agenda to
quarterly reports. Nonetheless, I prepare and submit to the City Clerk, individual Mayor and Councilmembers a
report on a monthly basis.
42 Phillip Molina,

City Treasurer
43 FINANCE AND GOVERNANCE COMMITTEE

AGENDA REPORT

REPORTS
AGENDA ITEM NO. D.2

DATE: June 14, 2022

TO: Finance & Governance Committee

FROM: Shiri Klima, Deputy City Manager, (805) 385-7487, [email protected]

SUBJECT: City of Oxnard Whistleblower Summary Update. (5/5/5)

RECOMMENDATION

That the Finance and Governance Committee recommends that the City Council receive and file an update on whistleblower matters.
(Presentation will be live upon consultant's request).

BACKGROUND

The City of Oxnard established various mechanisms for employees and residents of the City to report potential fraud, waste or abuse. Those mechanisms include a whistleblower hotline and a web page on the City's website for online submissions as well as email complaints to the independent accounting firm that monitors the whistleblower hotline, Price Paige & Company. Price Paige & Company will conduct investigations on allegations and complaints received in accordance with the program guidelines. Price Paige & Company will report to the City Council's Finance and Governance Committee on a periodic basis depending on the volume of complaints received.

STRATEGIC PRIORITIES

This agenda item is a routine operational item or does not relate to the five strategic priorities adopted by City Council on March 16, 2021.

FINANCIAL IMPACT

The whistleblower program is designed to help reduce potential fraud, waste or abuse of City resources.

Prepared by: Henry Oum, Price Paige & Co.

ATTACHMENTS

1. City of Oxnard Whistleblower Program Summary through 5.24.2022

2. City of Oxnard Whistleblower Presentation through 5.24.2022 44 May 24, 2022

From: Price Paige & Company
To: Finance and Governance Committee of the City of Oxnard

City of Oxnard Whistleblower Activity Report

Whistleblower Information

The City of Oxnard Whistleblower Policy authori zes Price Paige & Company (“PPC”), a contracted independent accounting firm, to receive complaints fr om city employees and members of the public who wish to report an improper governmental action. An "improper governmental action" is defined as “any activity by a local agency or employee that is under taken in the performance of the employee’s official duties, including activities deemed to be outside the scope of his or her employment, that is in violation of any local, state, or federal law or regulation relating to corruption, malfeasance, bribery, theft of government property, or willful omission to perform dut y, is economically wast eful, or involves gross misconduct”. The complaints received by PPC s hall remain confidential, and the identity of the complainant will not be revealed without the permissi on of the complainant, except to an appropriate law enforcement agency conducting a criminal investigation.

Upon receiving a complaint, PPC may conduct an investigation into the facts alleged in the complaint to determine whether an improper governmental action has occurred. Before launching an investigation, PPC’s staff will conduct a careful evaluation of the complaint to determine whether it has enough potential merit to warrant the expenditure of city resources to conduct an investigation. After PPC receives a complaint, any investigation resulting from the complaint is confidential, so PPC’s staff cannot provide any updates about what is being done to investigate the co mplaint or what information has been uncovered.

Information about the investigation will not be releas ed unless PPC substantiates that an improper action has occurred and issues a report on it.

Whistleblower Priority Assessment

Due to the limited resources of the City, conducting full investigations of all allegations and complaints received is not feasible. PPC will first screen the allegation to determine “predication”. Predication is defined by the Association of Certified Fraud Examiner as “the totality of circumstances that would lead a reasonable, professionally trained, and prudent individu al to believe a fraud has occurred, is occurring, and/or will occur.” Predication is the basis upon which an invest igation is commenced. Investigations should not be conducted without proper predication. Once predication is established, PPC will commence an investigation into the allegation or complaint.

45 2
Allegations and complaints received are ranked by risk, and investigative efforts are focused on those that represent the greatest risk to the City. The fo llowing shows how we generally classify types of tips based on risk:

High Priority – Matters that are considered high priority could include: potential loss to the City of more than $75,000, high level management involvement, collusion of multiple wrongdoers, major department-wide issues, or the need for immediate action to stop a potential major issue. These matters could take priority over other investigat ions and audits subject to the Internal Auditor’s professional judgment.

Medium Priority – Matters that are considered medium priority could include: potential loss to the City of more than $25,000, include abuse of authority, medium-to-low-level employee involvement, minor department-wide issues, or patte rns of small issues that could be significant cumulatively. Some medium-priority items could be referred to a department for further review.

Low Priority – Matters that are considered low priority co uld include: potential loss to the City of up to $25,000, comprised of isolated instances of time abuse, wasteful practices that could lead to efficiencies if corrected, or allegations that lack creditability and evidence. The Internal Audit Department would aim to investigate items in this list, but may not do so due to limited resources.

Some low priority allegations could be referred to a department for their review.

Whistleblower Activity Report

The following allegations and complaints were received during the period of November 30, 2021 through May 24, 2022:

Incident # Primary Type of Allegation Source of Submission Priority Current Status 2021-4-7 Unrelated to the City Website N/A Non-fiscal related 2021-4-8 Unrelated to the City Website N/A Non-fiscal related; forwarded to appropriate department 2022-1-1 Unrelated to the City Website N/A Non-fiscal related 2022-1-2 Code Violation Website N/A Non-fiscal related; forwarded to appropriate department 2022-1-3 Code Violation Website N/A Non-fiscal related
2022-1-4 Unrelated to the City Website N/A Non-fiscal related 2022-1-5 Ordinance violation Website N/A Non-fiscal related; forwarded to appropriate department 2022-2-1 Ordinance violation Website N/A Non-fiscal related; forwarded to appropriate department There were a total of 8 complaints/allegations received from November 30, 2021 through May 24, 2022.

Whistleblower Activity Summary

There are no current investigations related to the whistleblower moni toring. Many of the allegations received thus far are non-fiscal related and as appropriate, have been forwarded to the appropriate department.
46 1
47 In 2017, the City established a Whistleblower
Program, contracted through Price Paige &
Company, an independent accounting firm, to
receive complaints from city employees and
members of the public who wish to report an
improper governmental action.

Complaints received by Price Paige & Company
(the “Firm”) shall remain confidential, and the
identity of the complainant will not be revealed
without the permission of the complainant, except
to an appropriate law enforcement agency
conducting a criminal investigation.
2 48
The Firm will only focus on fiscal related matters.

Other matters received through the program will
be forwarded to the appropriate department.

After receiving a complaint, the Firm will evaluate
the complaint for merit prior to launching an
investigation. The Firm will not provide updates to
the complainant or other parties until the matter
has been fully investigated and reported.
3 49
The Firm will screen the complaint for
“predication”.

Predication is defined by the Association of
Certified Fraud Examiner as “the totality of
circumstances that would lead a reasonable,
professionally trained, and prudent individual to
believe a fraud has occurred, is occurring, and/or
will occur.”
4 50
Quantitative Assessment Categories:

High Priority: Above $75,000

Medium Priority: Between $25,000 to $75,000

Low Priority: Less than $25,000
5 51
Qualitative Assessment Categories:

High Priority: Involves high level management,
collusion of multiple wrongdoers, etc.

Medium Priority: Abuse of authority, medium to low
employee involvement, etc.

Low Priority: Isolated incidents of time abuse,
wasteful practices, etc.
6 52
Complaints from November 30, 2021 through May 24, 2022:
7 53
Complaints from November 30, 2021 through May 24, 2022:
• A total of 8 complaints have been received for the period above. None meets the criteria to determine whether predication exists. 8 54
Complaints from FY2018 through FY2022:
9 55
Complaints from FY2018 through FY2022:
10 56
Complaints from FY2018 through FY2022:
• A total of 125 complaints have been received for the
period above
• The top 3 categories of complaints include:
• COVID19 safety concerns
• Matters unrelated to the City
• Code violations
• To date, we have substantiated and investigated a
total of 2 of the 125 complaints/allegations received
as part of the Whistleblower Program.
11 57

Questions and comments?
12 58

FINANCE AND GOVERNANCE COMMITTEE

AGENDA REPORT

REPORTS
AGENDA ITEM NO. D.3

DATE: June 14, 2022

TO: Finance & Governance Committee

FROM: Helen Miller, Chief Information Officer, (805)385-7446, [email protected]

SUBJECT: Ratify the Microsoft Corporation Enterprise Agreement #808445 for Information Technology Software Licensing. (0/5/5)

RECOMMENDATION

That the Finance and Governance Committee recommend that City Council ratify the City’s Microsoft Corporation Volume Licensing Enterprise Agreement #808445 and authorize the Mayor to execute Purchase Order #8617 with SoftwareOne, Inc. for a not-to-exceed amount of $365,062.08 for the continued use and purchase of Microsoft products for the June 1, 2020, to May 31, 2023, agreement term.

Please click the following link to view the required Measure M pre-recorded presentation video: https://youtu.be/45PYyz_G5vk

BACKGROUND

The City of Oxnard uses a Microsoft Enterprise Agreement (EA) for its Microsoft products used by the Police Department. Microsoft software is on every Police Department computer and on most of their technology infrastructure servers, providing the business systems used to conduct City business and deliver services to residents. This EA currently provides licensing for 415 computer workstation operating systems, and their installed desktop productivity software suites (Word, Excel, PowerPoint, Visio), plus the licensing for database and server infrastructure for business systems; e.g., electronic content management, time-keeping, records management, computer aided dispatch, remote IT support, reporting writing.

The County of Riverside negotiated a contract, PSA-001530, for an Enterprise Agreement with Microsoft based on its user and device counts. As another public agency, the City chose to piggyback on this contract to achieve greater savings than if we were to negotiate with Microsoft on our own. The minimum term that Microsoft allows for Enterprise Agreements is three years. And, the City is required to enroll with and use one of the Riverside agreement’s authorized resellers to obtain the reduced Level D pricing offered by Microsoft to organizations with more than 15,000 devices/users.

DISCUSSION
The City recently renewed the last and third year of its EA for the period of June 1, 2022, through May 31, 2023. Maintaining the EA ensures the City can keep departmental systems operational and resident services available via:
Valid compliant Microsoft licensing
59 Weekly Microsoft security maintenance and product bug fixes Enhanced functionality service pack updates
Rights to the latest version of a software product (aka software assurance) Microsoft technical support
Single IT administrative portal consolidating product & licensing information in one place

As of May 31, 2022, the City has spent a total of $290,026.08 over the three-year EA agreement’s term of June 1, 2020, to May 31, 2023. Based upon City procurement policy and the three-year Microsoft EA contract value exceeding $200,000, staff should have come to Council for approval before executing the agreement with Microsoft through reseller SoftwareOne in May 2020. Staff is requesting ratification of the original agreement and a not to exceed (NTE) limit of $365,062.08. Doing so covers the $290,062.08 cost of the original EA and allows staff an additional $75,000 to procure necessary Microsoft products from SoftwareOne at the discounted EA prices.

TABLE 1 – Microsoft EA Estimated Costs, 6/1/2020 through 5/30/2023 Description FY 20-21 FY 21 -22 FY 22-23 Total
Microsoft Enterprise
Agreement (EA)
$96,687.36 $96,687.36 $96,687.36 $290,062.08
Growth & Contingency 0 0 $75,000 $75,000
TOTAL, per fiscal year $96,687.36 $96,687.36 $171,687.36 $365,062.08 The growth and contingency amount included in Table 1 is for unforeseen remediation or emergency needs, and flexible capacity to support the City’s needs through May 31, 2023, when the current software agreement terminates.

Going forward, IT staff will more closely monitor information and technology contracts such that we proactively come to Council before a NTE limit is reached and/or a contract over $200,000 is executed. The new Tyler Munis ERP system’s purchase module will enforce business rules and internal controls that identify and mitigate this scenario from reoccurring in the future.

STRATEGIC PRIORITIES

This agenda item supports the Organizational Effectiveness strategy. The purpose of the Organizational Effectiveness strategy is to reinforce, stabilize, improve, and strengthen the organizational foundation of the City in order to build a modern, high-functioning City government that effectively and efficiently supports the operating departments in providing high-quality services and programs for our residents and businesses.

FINANCIAL IMPACT

Funds for this expenditure for FY 20-21 were not budgeted in the IT department’s annual budget and the license fee was paid with a combination of funds from various departments. For FY 21-22 and 22-23, there are sufficient appropriations in IT's department budget (Fund 731-7301).

60 Prepared by: Helen Miller, Chief Information Officer

ATTACHMENTS

1. Finance and Governance 6_14_22 Agenda D3

2. County of Riverside Licensing Solution Provider Agreement PSA-0001530

3. County of Riverside 1st Amendment PSA-0001530

4. Microsoft Program Signature Form 2020-05-28-15_59

5. 5-0000005482816 City of Oxnard Microsoft Alt Acceptance 052920

6. Software One Microsoft EA Year 3 renewal quote
61 Ratify the Microsoft Corporation
Enterprise Agreement #808445 for
information technology software licensing
Finance & Governance Committee
June 14, 2022
Helen Miller, Chief Information Officer
62 That the Finance and Governance Committee
recommend that City Council ratify the City’s Microsoft Corporation Volume Licensing Enterprise Agreement
#808445; and authorize the Mayor to execute Purchase
Order 8617 with Software One, Inc. for a not to exceed
amount of $365,062.08 for the continued use and
purchase of Microsoft products for the June 1, 2020 to
May 31, 2023 agreement term.

RECOMMENDATION 2
63 • The City of Oxnard uses a Microsoft Enterprise Agreement (EA) for its Microsoft products used by the Police Department
• Microsoft software is on every Police Department computer and on most technology infrastructure servers providing business systems used to conduct City business and deliver services to residents. • County of Riverside negotiated an EA contract, PSA-001530 o The City piggybacks on their contract as do other public agencies to achieve greater savings
o Minimum term Microsoft allows is 3 years
o Prices locked in for duration
o Requires use of an authorized reseller (City uses SoftwareOne, Inc.) BACKGROUND 3
64 • The City recently renewed the last and third year of its EA for the period of June 1, 2022 – May 31, 2023
• Maintaining the EA ensures the City can keep department systems operational and resident services available via:
o Valid compliant Microsoft licensing
o Weekly Microsoft security maintenance & product bug fixes o Enhanced functionality service pack updates
o Rights to the latest version of a product
o Microsoft technical support access
o Single IT administrative portal
BACKGROUND 4
65 NEEDS AND DETAILS – Estimated Costs 5
TABLE 1 – Microsoft EA Estimated Costs, 6/1/2020 through 5/31/2023 • As of May 31, 2022, City spent a total of $290,062.08. • Based on City procurement policy and the 3-yr contract’s value exceeding $200k, staff should have come to Council for approval prior to executing the Microsoft EA through reseller, SoftwareOne, in May 2020. • Staff is requesting ratification of the original agreement for a not-to-exceed (NTE) limit of $365,062.08. • This amount covers the $290,062.08 original baseline agreement and allows staff an additional $75k to procure necessary Microsoft products from SoftwareOne at discounted EA prices. • The growth and contingency amount is for unforeseen remediation or emergency needs and flexible capacity to support the City’s needs through May 31, 2023 when the current agreement terminates.

Description FY 20-21 FY 21-22 FY 22-23 Total
Microsoft Enterprise Agreement (EA) $ 96,687.36 $ 96,687.36 $ 96,687.36 $ 290,062.08 Growth & Contingency 0 0 $ 75,000 $ 75,000
TOTAL, per fiscal year $ 96,687.36 $ 96,687.36 $ 171,687.36 $ 365,062.08 66 • Going forward, IT staff will more closely monitor IT contracts such that we proactively come to Council before a NTE limit is reached and/or a contract over $200k is
executed.
• The new Tyler Munis ERP’s purchase module will enforce business rules and internal controls that identify &
mitigate this scenario from reoccurring.

NEEDS AND DETAILS – Maintaining Compliance 6
67 • Funds for this expenditure for FY 20-21 were not budgeted in the IT department’s annual budget and the license fee was paid with a combination of funds from various
departments.
• For FY 21-22 and 22-23, there are sufficient appropriations in IT’s department budget.

FINANCIAL IMPACT 7
68 That the Finance and Governance Committee recommend
that City Council ratify the City’s Microsoft Corporation Volume Licensing Enterprise Agreement #808445; and
authorize the Mayor to execute Purchase Order 8617
with Software One, Inc. for a not to exceed amount of
$365,062.08 for the continued use and purchase of
Microsoft products for the June 1, 2020 to May 31, 2023 agreement term.

RECOMMENDATION 8
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ProgramSignForm(MSSign)(NA,LatAm)ExBRA,MLI(ENG)(May2020) Page 1 of 2 Document X20-12883

Program Signature Form
MBA/MBSA number

5-0000005338069
Agreement number 8084445

Note: Enter the applicable active numbers associated with the documents below. Microsoft requires the associated active number be indicated here, or listed below as new.

For the purposes of this form, “Customer” can mean the signing entity, Enrolled Affiliate, Government Partner, Institution, or other party entering into a volume licensing program agreement.

This signature form and all contract documents identified in the table below are entered into between the Customer and the Microsoft Affiliate signing, as of the effective date identified below.

Contract Document Number or Code
Enterprise Enrollment (Indirect) X20-10635
Enterprise Amendment M97 (New)
Product Selection Form 0952708.003_PSF
By signing below, Customer and the Microsoft Affiliate agree that both parties (1) have received, read and understand the above contract documents, including any websites or documents incorporated by reference and any amendments and (2) agree to be bound by the terms of all such documents.

Customer
Name of Entity (must be legal entity name)* City of Oxnard on Behalf of Oxnard Police Department Signature*
Printed First and Last Name*
Printed Title
Signature Date*
Tax ID
* indicates required field
Microsoft Affiliate
Microsoft Corporation
Signature
Printed First and Last Name
Printed Title
Signature Date
(date Microsoft Affiliate countersigns)
Agreement Effective Date
(may be different than Microsoft’s signature date)
DocuSign Envelope ID: BD9FB1BA-C91B-4838-A024-59FF144C7038 5/28/2020 | 4:14 PM PDT
Purchasing Manager
Daniel Willhite
106
ProgramSignForm(MSSign)(NA,LatAm)ExBRA,MLI(ENG)(May2020) Page 2 of 2 Document X20-12883

Optional 2nd Customer signature or Outsourcer signature (if applicable) Customer
Name of Entity (must be legal entity name)*
Signature*
Printed First and Last Name*
Printed Title
Signature Date*
* indicates required field
Outsourcer
Name of Entity (must be legal entity name)*
Signature*
Printed First and Last Name*
Printed Title
Signature Date*
* indicates required field
If Customer requires additional contacts or is reporting multiple previous Enrollments, include th e appropriate form(s) with this signature form.

After this signature form is signed by the Customer, send it and the Contract Documents to Customer’s channel partner or Microsoft account manager, who must submit them to the following address. When the signature form is fully executed by Microsoft, Customer will receive a confirmation copy.

Microsoft Corporation
Dept. 551, Volume Licensing
6880 Sierra Center Parkway
Reno, Nevada 89511
USA
DocuSign Envelope ID: BD9FB1BA-C91B-4838-A024-59FF144C7038 Daniel Willhite
Purchasing Manager
5/28/2020 | 4:14 PM PDT
107
AAForm(MSOnly)(WW)(ENG)(May2020) MAAF01 Page 1 of 2
Document X20-12893
Alternative Acceptance Form (Microsoft Only)
Due to the extraordinary impact of the coronavirus (COVID-19), Microsoft has implemented steps to protect personnel and the communities in which they live and work, including conducting business from remote locations and/or using different processes. As a result, Microsoft is utilizing this Alternative Acceptance Form in place of signing a Program Signature Form.

Microsoft’s authorized representative is accepting the contract documents shown on the Program Signature Form bearing the Proposal ID shown below (“Contract Documents”) by typing their name and entering the date of acceptance on this Alternative Acceptance Form. The Agreement Effective Date shown below is the Agreement Effective Date shown on the Program Signature Form.

For the purposes of this Alternative Acceptance Form, “Customer” means the Customer entity identified on the Program Signature Form bearing the same Proposal ID that appears on this form, and “Microsoft” means the Microsoft entity or entities identified below on this form.

MBA/MBSA number: N/A
Agreement number: 01E65727
Enrollment number: 5627032
Proposal ID: 0952708.003
Opportunity ID (if applicable): 5-0000005338069
Agreement Effective Date: 6/1/2020
Customer Name: Executive Office of Technology Services and Security
To indicate Microsoft’s agreement, Microsoft’s duly authorized representative will complete this form by entering their name and the date of Microsoft’s acceptance below. Upon completion of this form, Microsoft agrees that it (1) has received, read and understands this Alternative Acceptance Form, the Program Signature Form, and all Contract Documents, including any websites or documents incorporated by reference and any amendments, and (2) agrees to be bound by the terms of all such documents, as of the Agreement Effective Date. This Alternative Acceptance Form, when completed, will be incorporated into the Agreement noted above.

Acceptance by Microsoft
Enter applicable Microsoft Affiliate: Microsoft Corporation Name of Microsoft authorized representative: John Bjurman Acceptance date: 5/29/2020
The above person is duly authorized on behalf of Microsoft to accept these Contract Documents. Microsoft will not challenge the enforceability or validity of the agreement formed by this alternative process or any of the Contract Documents based on its acceptance using this Alternative Acceptance Form.
108
AAForm(MSOnly)(WW)(ENG)(May2020) MAAF01 Page 2 of 2
Document X20-12893
Optional Confirmation of Acceptance on Customer Request Once Microsoft returns to its normal business processes, if Customer requests a Microsoft signature, an authorized representative of Microsoft will sign and deliver a copy of this Alternative Acceptance Form below to confirm the effectiveness of the agreement as of the Agreement Effective Date shown above.

Optional Microsoft Confirmation of Acceptance
Enter applicable Microsoft Affiliate: <choose one>
By signature of its duly authorized representative below, Microsoft hereby acknowledges, ratifies and confirms that the agreement referenced on this Alternative Acceptance Form was duly accepted, and is effective as of the Agreement Effective Date shown above.

Signature: sign your complete name
Printed First and Last Name: print your complete name
Printed Title: print your title
Signature Date: enter the date you signed this form
109
Quoted to: Oxnard Police Dept
Gary Krumian
Date: 2/17/2022 [email protected]
Quote#: 44609
Expires: 3/19/2022 EA# 85882211 - Expires 5/31/2023
Quantity Part # Description Unit Price Ext. Price
4 6QK-00001 Azure Monetary Commitment 1,200.00$ 4,800.00$ 415 W06-01069 CoreCAL ALNG SA MVL Pltfrm DvcCAL 34.67 $ 14,388.05$ 415 269-12442 OfficeProPlus ALNG SA MVL Pltfrm 94.78 $ 39,333.70$ 415 KV3-00353 WINENTperDVC ALNG SA MVL Pltfrm 42.06 $ 17,454.90$ 8 7NQ-00292 SQLSvrStdCore ALNG SA MVL 2Lic CoreLic 584.79$ 4,678.32$ 9 D86-01253 VisioStd ALNG SA MVL 51.51 $ 463.59$ 20 6VC-01253 WinRmtDsktpSrvcsCAL ALNG SA MVL DvcCAL 17.94$ 358.80$ 120 9EA-00278 WinSvrDCCore ALNG SA MVL 2Lic CoreLic 125.57$ 15,068.40$ 8 9EM-00270 WinSvrSTDCore ALNG SA MVL 2Lic CoreLic 17.70$ 141.60$ Sub-Total 96,687.36 $
Tax
ESD - nontaxable. Please type "Electronic Software
Delivery" on your PO. -$
Shipping No Charge
Total Total Annual Installment 96,687.36$
Prices good for 30 days
Quoted by Jason Carmer
Phone 214-480-845-7155 [email protected]
Pass-Through Warranty and Other Rights. As a reseller, end-user warranties and liabilities (with respect to any third party software products provided by SoftwareONE) shall be provided as a pass-through from the manufacturer of such products. All software products are subject to the license agreement of the applicable software supplier, as provided with the software packaging or in the software at time of shipment.

Important: Please provide the email address of the recipient designated to receive a SoftwareONE order confirmation and/or receive electronic software deliveries.

Please fax your POs to our Client Assistance Center at 800-366-9994 or email to:
[email protected] - Call 800-400-9852, option 2, to check order status. 110