Palm Springs City Council
May 14, 2025

CITY COUNCIL

AND AS SUCCESSOR AGENCY TO THE

COMMUNITY REDEVELOPMENT AGENCY OF THE

CITY OF PALM SPRINGS, CALIFORNIA
Council Chamber, City Hall
3200 E. Tahquitz Canyon Way, Palm Springs, CA 92262
www.palmspringsca.gov

REGULAR MEETING AGENDA

MAY 14, 2025

4:00 PM CLOSED SESSION
5:30 PM REGULAR MEETING
Ron deHarte, Mayor
Naomi Soto, Mayor Pro Tem
Jeffrey Bernstein, Councilmember
Grace Elena Garner, Councilmember
David Ready, Councilmember
Scott Stiles, City Manager

City of Palm Springs Mission Statement: Palm Springs is an inclusive world-class city dedicated to providing excellent and responsive public services to enhance the quality of life for current and future generations.

Pursuant to Assembly Bill 557 -
To view/listen/participate in the meeting live, please contact the City Clerk at [email protected] or the following telephone number (760) 323-8204 to register for the Zoom meeting. There will be an email with Zoom credentials sent after registration is complete, in order to access the meeting and offer public comment. Any person who wishes to provide public testimony for an item on the agenda is requested to file a speaker card before the Public Testimony portion of the meeting.

You may submit your public comment to the City Council electronically. Materials may be emailed to [email protected]. Transmittal prior to the start of the meeting will help ensure that your correspondence is fully considered. Any correspondence received during or after the meeting will be distributed to the City Council and retained for the official record. View the City Council meeting live at the City’s website www.palmspringsca.gov/psctv, YouTube, or Channel 17 (Spectrum).

Please note any agenda item which has not been initiated by 11:00 p.m. may be continued to a subsequent meeting.

At approximately 10:00 p.m., the City Council will determine the number of speakers who wish to address the City Council during Public Comment for non-Agenda Items and determine which agenda items will be considered before the 11:00 p.m. Adjournment time.

AGENDA EN ESPAÑOL DISPONIBLE EL LUNES - HAGA CLIC AQUÍ

4:00 P.M. CLOSED SESSION

CALL TO ORDER (Council Chamber):

PUBLIC COMMENT FOR CLOSED SESSION ITEMS ONLY (Council Chamber): The City Council welcomes public input. Members of the public may address the City Council on Closed Session items by contacting the City Clerk's Office at 760-323-8204. Pursuant to State Law, the City Council may not discuss or take action on issues not on the meeting agenda (Government Code Section 54954.2). If you are compensated to communicate with City officials, you may be required to register and/or make certain disclosures as a lobbyist. Please see the City Clerk for additional information.

RECESS TO CLOSED SESSION (Small Conference Room): See Closed Session Agenda.

May 14, 2025 City Council Regular Meeting Agenda 2

5:30 P.M. REGULAR MEETING

CALL TO ORDER:

PLEDGE OF ALLEGIANCE:

ROLL CALL:

PRESENTATIONS: NONE

ACCEPTANCE OF THE AGENDA: The City Council will discuss the order of the agenda, may amend the order, add urgency items, note abstentions or "no" votes on Consent Calendar items, and request Consent Calendar items be removed from the Consent Calendar for discussion.

The City Council may also remove items from the Consent Calendar prior to that portion of the Agenda.

REPORT OF CLOSED SESSION:

PUBLIC TESTIMONY: (Non-Public Hearing Agenda Items ONLY) This time has been set aside for members of the public to address the City Council only on agenda items. Two (2) minutes will be assigned to each speaker. Testimony for Public Hearings will only be taken at the time of the hearing, and General Public Comments, non-agenda items, will be taken later in the meeting.

1. CONSENT CALENDAR:

The following routine matters may be acted upon by one motion. Individual items may be removed by the Council for separate discussion at this time or under Acceptance of the Agenda. The ordinance title is deemed to be read in its entirety and further reading waived on any ordinance listed on the Consent Calendar.

A. APPROVAL OF MINUTES
RECOMMENDATION:

Approve the City Council Meeting Minutes of April 23, 2025.

May 14, 2025 City Council Regular Meeting Agenda 3

B. APPOINTMENT TO THE PLANNING COMMISSION
RECOMMENDATION:

Appoint Megan Rodriguez to the Planning Commission, as a non-voting member, for a term expiring on June 30, 2028; the term shall take effect 30 days after the final adoption of Ordinance No. 2110.

C. APPROVAL OF PAYROLL WARRANTS, CLAIMS AND DEMANDS
RECOMMENDATION:

Adopt a Resolution entitled “A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF PALM SPRINGS, CALIFORNIA, APPROVING PAYMENT OF PAYROLL WARRANTS/DISBURSEMENTS FOR THE PERIOD ENDING 04-12-25 TOTALING $2,660,830.23 AND ACCOUNTS PAYABLE WARRANTS DATED 04-10-25 TOTALING $7,310,464.54 IN THE AGGREGATE AMOUNT OF $9,971,294.77 DRAWN ON BANK OF AMERICA."

D. TREASURER’S INVESTMENT REPORT AS OF MARCH 31, 2025
RECOMMENDATION:

Receive and File.

E. ADOPT THE CITY’S FISCAL YEAR 2025-26 INVESTMENT POLICY GOVERNING

THE INVESTMENT OF CITY FUNDS
RECOMMENDATION:

Adopt a Resolution entitled, “A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF PALM SPRINGS, CALIFORNIA, ADOPTING AN INVESTMENT

POLICY GOVERNING THE INVESTMENT OF CITY FUNDS AND
SUPERSEDING RESOLUTION NO. 25200”; and

1. Delegate the City Council’s authority to invest and reinvest public funds, and to sell or exchange securities so purchased, to the City Treasurer for one year or until earlier revoked by the City Council.

2. F. RESOLUTION ADOPTING THE 2025 EMERGENCY OPERATIONS PLAN FOR

THE CITY OF PALM SPRINGS
RECOMMENDATION:

Adopt a resolution entitled, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, ADOPTING THE 2025 PALM SPRINGS EMERGENCY OPERATIONS PLAN.”

G. APPROVE COOPERATIVE PURCHASE AGREEMENT NO. 25C102 WITH PALM May 14, 2025 City Council Regular Meeting Agenda 4
G. APPROVE COOPERATIVE PURCHASE AGREEMENT NO. 25C102 WITH PALM SPRINGS MOTORS, INC., FOR AUTOMOTIVE PARTS AND SUPPLIES RECOMMENDATION:

Approve Cooperative Purchase Agreement No. 25C102 with Palm Springs Motors, Inc., to provide automotive parts and supplies in the amount not to exceed $375,000, for an initial three-year term beginning May 19, 2025, and ending on May 18, 2028, with two one-year extension options at the City’s sole discretion;

1. Authorize the City Manager or designee to execute all necessary documents.2.

H. RESOLUTION ACCEPTING THE FIRE DEPARTMENT’S ANNUAL REPORT ON

COMPLIANCE WITH STATE MANDATED INSPECTIONS
RECOMMENDATION:

Adopt Resolution No. entitled, “A RESOLUTION OF THE CITY COUNCIL OF

THE CITY OF PALM SPRINGS, CALIFORNIA, ACCEPTING THE FIRE DEPARMENT’S REPORT ON COMPLIANCE WITH STATE INSPECTION
MANDATES.”

1. Authorize the City Manager to execute all necessary documents.2.

I. APPROVE A RESOLUTION AUTHORIZING THE EXAMINATION OF SALES OR

TRANSACTIONS AND USE TAX RECORDS
RECOMMENDATION:

Adopt a Resolution entitled, “A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF PALM SPRINGS, CALIFORNIA, AUTHORIZING THE EXAMINATION OF SALES OR TRANSACTIONS AND USE TAX RECORDS”

1. Authorize the City Manager or designee to execute all necessary documents. 2.

J. APPROVE SUBLEASE AGREEMENT WITH DESERT COMMUNITY COLLEGE

DISTRICT
RECOMMENDATION:

Approve the Sublease Agreement with Desert Community College District; and1.

Authorize the City Manager, or designee, to execute all documents necessary. 2.

May 14, 2025 City Council Regular Meeting Agenda 5

K. ACCEPT THE HOUSING ELEMENT ANNUAL PROGRESS REPORT (APR) FOR THE 2024 CALENDAR YEAR FOR FILING WITH THE CALIFORNIA

DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT
RECOMMENDATION:

Accept the report as presented; and1.

Direct staff to make no changes to the report filed on April 3, 2025, with the California Department of Housing and Community Development and the Governor’s Office of Planning and Research.

2. L. APPROVAL OF PARCEL MAP 38400 WITH CITY LIFESTYLE GROUP, LLC, A

CALIFORNIA LIMITED LIABILITY COMPANY
RECOMMENDATION:

Adopt Resolution No. entitled, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, APPROVING PARCEL MAP 38400

WITH CITY LIFESTYLE GROUP, LLC, A CALIFORNIA LIMITED LIABILITY COMPANY, FOR PROPERTY LOCATED AT 299 VIA OLIVERA, IN SECTION 3, TOWNSHIP 4 SOUTH, RANGE 4 EAST.”

M. APPROVE AMENDMENT NO. 5 TO PROFESSIONAL SERVICES AGREEMENT NO. 23Q183 WITH GROUP 4 ARCHITECTURE, RESEARCH + PLANNING, INC.

FOR PALM SPRINGS PUBLIC LIBRARY RENOVATION, CITY PROJECT 16-08 RECOMMENDATION:

Approve Amendment No. 5 to the Professional Services Agreement No. 23Q183 with Group 4 Architecture, Research + Planning, Inc. to provide design services for an amount not to exceed $25,040; and

1. Authorize the City Manager or designee to execute all necessary documents. 2.

N. APPROVAL OF FUNDING SOURCE ADJUSTMENT FOR BID SCHEDULE B AND CONTINGENCY FOR THE 2025 PAVEMENT REHABILITATION PROJECT, CITY PROJECT NO. 25-01(“PROJECT”)
RECOMMENDATION:

Delegate authority to the City Manager or designee to approve and execute construction contract change orders up to a total amount of $1,705,000 with all change orders reported to the City Council;

1. Appropriate $1,705,000 from Measure A; and2.

Authorize the City Manager or designee to execute all necessary documents.3.

O. APPROVE CONTRACT SERVICES AGREEMENT NO. 25P107 WITH
May 14, 2025 City Council Regular Meeting Agenda 6
O. APPROVE CONTRACT SERVICES AGREEMENT NO. 25P107 WITH
TOWNSEND PUBLIC AFFAIRS, INC. FOR GRANT WRITING & LEGISLATIVE

ADVOCACY SERVICES
RECOMMENDATION:

Approve Contract Services Agreement No. 25P107 with Townsend Public Affairs, Inc., to provide grant writing and legislative services for an initial three-year term in an amount not to exceed $264,000 beginning May 15, 2025, through May 14, 2028, with two one-year extension options at the City’s sole discretion; and

1. Authorize the City Manager or designee to execute all necessary documents.2.

P. INTERVIEW AND APPOINTMENT PROCESS FOR CITY’S HUMAN RIGHTS

COMMISSION CANDIDATES
RECOMMENDATION:

Direct City staff to schedule interviews of Human Rights Commission candidates before the entire City Council.

EXCLUDED CONSENT CALENDAR: Items removed from the Consent Calendar for separate discussion are considered at this time.

2. PUBLIC HEARINGS:

A. ANNEXATION OF CERTAIN PROPERTIES INTO COMMUNITY FACILITIES DISTRICT (CFD) NO. 2005-1 (PUBLIC SAFETY SERVICES) ANNEXATION NO. 27, CALLING AND CONDUCTING THE SPECIAL ELECTION
RECOMMENDATION:

Open the public hearing and take public testimony and property owner protests for proposed Annexation No. 27 into Community Facilities District No. 2005-1 (Public Safety Services).

1. Adopt Resolution No. entitled, “A RESOLUTION OF THE CITY COUNCIL OF

THE CITY OF PALM SPRINGS, CALIFORNIA, AUTHORIZING
ANNEXATION NO. 27, SIENA, TRACT MAP NO. 38846, INTO COMMUNITY FACILITIES DISTRICT NO. 2005-1 (PUBLIC SAFETY SERVICES),

AUTHORIZING THE LEVY OF A SPECIAL TAX, AND SUBMITTING THE LEVY OF SPECIAL TAX TO QUALIFIED ELECTORS.”

2. Conduct special election and the City Clerk to canvass results.3.

Adopt Resolution No. entitled, “A RESOLUTION OF THE CITY COUNCIL OF

THE CITY OF PALM SPRINGS, CALIFORNIA, DECLARING THE RESULTS

OF A SPECIAL ANNEXATION LANDOWNER ELECTION, DETERMINING

VALIDITY OF PRIOR PROCEEDINGS, AND DIRECTING THE RECORDING

OF AN AMENDED NOTICE OF SPECIAL TAX LIEN FOR ANNEXATION NO. 27, SIENA, TRACT MAP NO. 38846, INTO COMMUNITY FACILITIES DISTRICT NO. 2005-1 (PUBLIC SAFETY SERVICES).”

4. May 14, 2025 City Council Regular Meeting Agenda 7

B. ANNEXATION OF CERTAIN PROPERTIES INTO COMMUNITY FACILITIES DISTRICT (CFD) NO. 2005-1 (PUBLIC SAFETY SERVICES) ANNEXATION NO. 28, CALLING AND CONDUCTING THE SPECIAL ELECTION
RECOMMENDATION:

Open the public hearing and take public testimony and property owner protests for proposed Annexation No. 28 into Community Facilities District No. 2005-1 (Public Safety Services).

1. Adopt Resolution No. entitled, “A RESOLUTION OF THE CITY COUNCIL OF

THE CITY OF PALM SPRINGS, CALIFORNIA, AUTHORIZING
ANNEXATION NO. 28, SERENA PARK, TRACT MAP NOS. 39025, 36691-1, 36691-2, 36691-3, 36691-4, 36691-5, 36691-6, AND 36691, INTO COMMUNITY FACILITIES DISTRICT NO. 2005-1 (PUBLIC SAFETY

SERVICES), AUTHORIZING THE LEVY OF A SPECIAL TAX, AND
SUBMITTING THE LEVY OF SPECIAL TAX TO QUALIFIED ELECTORS.”

2. Conduct special election and the City Clerk to canvass results.3.

Adopt Resolution No. entitled, “A RESOLUTION OF THE CITY COUNCIL OF

THE CITY OF PALM SPRINGS, CALIFORNIA, DECLARING THE RESULTS

OF A SPECIAL ANNEXATION LANDOWNER ELECTION, DETERMINING

VALIDITY OF PRIOR PROCEEDINGS, AND DIRECTING THE RECORDING

OF AN AMENDED NOTICE OF SPECIAL TAX LIEN FOR ANNEXATION NO. 28, SERENA PARK, TRACT MAP NOS. 39025, 36691-1, 36691-2, 36691-3, 36691-4, 36691-5, 36691-6, AND 36691, INTO COMMUNITY FACILITIES DISTRICT NO. 2005-1 (PUBLIC SAFETY SERVICES).”

4. C. ANNEXATION OF CERTAIN PROPERTIES INTO COMMUNITY FACILITIES DISTRICT (CFD) NO. 2007-1 (PUBLIC SAFETY SERVICES) ANNEXATION NO. 4, CALLING AND CONDUCTING THE SPECIAL ELECTION
RECOMMENDATION:

Open the public hearing and take public testimony and property owner protests for proposed Annexation No. 4 into Community Facilities District No. 2007-1 (Public Safety Services).

1. Adopt Resolution No. entitled, “A RESOLUTION OF THE CITY COUNCIL OF

THE CITY OF PALM SPRINGS, CALIFORNIA, AUTHORIZING
ANNEXATION NO. 4, LATITUDE 61, TRACT MAP NO. 38776, INTO COMMUNITY FACILITIES DISTRICT NO. 2007-1 (PUBLIC SAFETY

SERVICES), AUTHORIZING THE LEVY OF A SPECIAL TAX, AND
SUBMITTING THE LEVY OF SPECIAL TAX TO QUALIFIED ELECTORS.”

2. Conduct special election and the City Clerk to canvass results.3.

Adopt Resolution No. entitled, “A RESOLUTION OF THE CITY COUNCIL OF

THE CITY OF PALM SPRINGS, CALIFORNIA, DECLARING THE RESULTS

OF A SPECIAL ANNEXATION LANDOWNER ELECTION, DETERMINING

VALIDITY OF PRIOR PROCEEDINGS, AND DIRECTING THE RECORDING

OF AN AMENDED NOTICE OF SPECIAL TAX LIEN FOR ANNEXATION NO. 4, LATITUDE 61, TRACT MAP NO. 38776, INTO COMMUNITY FACILITIES DISTRICT NO. 2007-1 (PUBLIC SAFETY SERVICES).”

4. May 14, 2025 City Council Regular Meeting Agenda 8
D. DELINQUENT WASTE DISPOSAL CHARGES
RECOMMENDATION:

Open the public hearing and receive public testimony.1.

Adopt Resolution No. entitled, “A RESOLUTION OF THE CITY COUNCIL OF

THE CITY OF PALM SPRINGS, CALIFORNIA, DETERMINING CERTAIN

WASTE DISPOSAL ACCOUNTS TO BE DELINQUENT AND DIRECTING

THE PLACEMENT OF THESE ACCOUNTS ON THE COUNTY PROPERTY
TAX ROLLS FOR COLLECTION.”

2. E. CONDUCT A PUBLIC HEARING UNDER SECTION 53083 OF THE

CALIFORNIA GOVERNMENT CODE TO APPROVE A HOTEL OPERATIONS

COVENANT BETWEEN THE CITY OF PALM SPRINGS AND THE LUCILLE PALM SPRINGS, PURSUANT TO MUNICIPAL CODE CHAPTER 5.26 OF THE CITY’S HOTEL OPERATIONS INCENTIVE PROGRAM
RECOMMENDATION:

Open the public hearing and receive public testimony.1.

Approve a Hotel Operations Covenant Agreement with The Lucille Palm Springs located at 458 W Arenas Road, Palm Springs.

2. Authorize the City Manager and City Attorney to make non-substantive changes and execute all necessary documents related to the subsidy.

3. F. AN APPEAL BY MCWHIRTER REALTY PARTNERS OF THE DECISION BY

THE PLANNING COMMISSION TO DENY A MAJOR DEVELOPMENT PERMIT APPLICATION, CASE DP-2024-0009, FOR THE CONSTRUCTION OF A NEW 4,012-SQUARE-FOOT COMMERCIAL BUILDING FOR A PAINT STORE ON A

0.38-ACRE UNDEVELOPED PARCEL LOCATED NEAR THE SOUTHEAST

CORNER OF NORTH PALM CANYON DRIVE AND EAST STEVENS ROAD, ZONE C-1, SECTION 10 (CASE APPL-2025-0002).

RECOMMENDATION:

Open the appeal hearing and receive testimony; and1.

Adopt Resolution No. entitled, “A RESOLUTION OF THE CITY COUNCIL OF

THE CITY OF PALM SPRINGS, CALIFORNIA, DENYING THE APPEAL BY

MCWHIRTER REALTY PARTNERS AND UPHOLDING THE PLANNING
COMMISSION’S DECISION TO DENY A MAJOR DEVELOPMENT PERMIT APPLICATION, CASE DP-2024-0009, FOR THE CONSTRUCTION OF A NEW 4,012-SQUARE-FOOT COMMERCIAL BUILDING FOR A PAINT
STORE ON A 0.38-ACRE UNDEVELOPED PARCEL LOCATED NEAR THE

SOUTHEAST CORNER OF NORTH PALM CANYON DRIVE AND EAST
STEVENS ROAD, ZONE C-1, SECTION 10 (CASE APPL-2025-0002).”; or

2. Alternatively, adopt Resolution No. entitled, “A RESOLUTION OF THE CITY

COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA,
OVERTURNING THE PLANNING COMMISSION’S DECISION TO DENY

AND APPROVING A MAJOR DEVELOPMENT PERMIT APPLICATION,
CASE DP-2024-0009, FOR THE CONSTRUCTION OF A NEW
4,012-SQUARE-FOOT COMMERCIAL BUILDING FOR A PAINT STORE ON A 0.38-ACRE UNDEVELOPED PARCEL LOCATED NEAR THE

3. May 14, 2025 City Council Regular Meeting Agenda 9
A 0.38-ACRE UNDEVELOPED PARCEL LOCATED NEAR THE

SOUTHEAST CORNER OF NORTH PALM CANYON DRIVE AND EAST
STEVENS ROAD, ZONE C-1, SECTION 10 (CASE APPL-2025-0002).”

3. BUSINESS & LEGISLATIVE: NONE

PUBLIC COMMENT: (Non-Agenda Items) This time has been set aside for members of the public to address the City Council on items of general interest within the subject matter jurisdiction of the City. Although the City Council values your comments, pursuant to the Brown Act, it generally cannot take any action on items not listed on the posted agenda. Two (2) minutes will be assigned to each speaker.

CITY COUNCIL AND CITY MANAGER COMMENTS, REPORTS, & AGENDA DEVELOPMENT: This time is set aside for the City Council and City Manager to provide additional general comments and reports. Additionally, the City Council and City Manager may briefly discuss items of concern and prioritize agenda items for future meeting dates.

ADJOURNMENT:

AFFIDAVIT OF POSTING
State of California )
County of Riverside ) ss.

City of Palm Springs )

I, Brenda Pree, City Clerk of the City of Palm Springs, California, hereby certify this Agenda was delivered to each member of the City Council, provided to all parties who have requested such notice, posted at City Hall before 5:00 p.m., on May 8, 2025, and posted on the City’s website as required by established policies and procedures.

____________________________
Brenda Pree, MMC, CERA
City Clerk
May 14, 2025 City Council Regular Meeting Agenda 10

P U B L I C N O T I C E S

Pursuant to G.C. Section 54957.5(b)(2) the designated office for inspection of records in connection with the meeting is the Office of the City Clerk, City Hall, 3200 E. Tahquitz Canyon Way. Complete Agenda Packets are available for public inspection at: City Hall Office of the City Clerk. Agenda and staff reports are available on the City’s website www.palmspringsca.gov. If you would like additional information on any item appearing on this agenda, please contact the Office of the City Clerk at
(760) 323-8204.

It is the intention of the City of Palm Springs to comply with the Americans with Disabilities Act (ADA) in all respects. If, as an attendee or a participant at this meeting, or in meetings on a regular basis, you will need special assistance beyond what is normally provided, the City will attempt to accommodate you in every reasonable manner. Please contact the Office of the City Clerk, (760) 323-8204, at least 48 hours prior to the meeting to inform us of your particular needs and to determine if accommodation is feasible.

May 14, 2025 City Council Regular Meeting Agenda 11

CITY COUNCIL STAFF REPORT
05/14/2025
SUBJECT:
4:00 P.M. CLOSED SESSION
Attachments
Closed Session Agenda

CITY COUNCIL

AND AS SUCCESSOR AGENCY TO THE

COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS

CLOSED SESSION AGENDA
Wednesday, May 14, 2025 – 4:00 p.m.

PUBLIC COMMENT PERIOD FOR CLOSED SESSION ITEMS ONLY
(Time limit is two minutes per person) The City Council welcomes public input. Pursuant to State law, the City Council may not discuss or take action on issues not on the meeting agenda (Government Code Section 54954.2). Please contact the City Clerk at 760-323-8204 to be added to the queue.

CONFERENCE WITH LEGAL COUNSEL The City Council finds, based on advice from the City Attorney, that discussion in open session of the following described matter(s) will prejudice the position of the City in existing and anticipated litigation.

CONFERENCE WITH LEGAL COUNSEL—INITIATION OF LITIGATION G.C §54956.9(d)(4)

One (1) matter

CONFERENCE WITH LEGAL COUNSEL—SIGNIFICANT EXPOSURE TO LITIGATION G.C §54956.9(d)(2)

Two (2) matters

CONFERENCE WITH LABOR NEGOTIATORS G.C § 54957.6

City Negotiators:

Employee Organization:

Scott Stiles, City Manager
Stephanie George, Human Resources Director
Peter Brown Legal Counsel
Palm Springs Police Officers Association (PSPOA)
Palm Springs Police Management Association (PSPMA)

CITY COUNCIL STAFF REPORT
05/14/2025
SUBJECT:

APPROVAL OF MINUTES
RECOMMENDATION:

Approve the City Council Meeting Minutes of April 23, 2025.

Attachments
Item 1A

City of Palm Springs DRAFT MINUTES Page 1

Wednesday, April 23, 2025
Minutes of the Regular Meeting of the City Council
of the City of Palm Springs

CALL TO ORDER:

A Regular Meeting of the Palm Springs City Council was called to order by Mayor deHarte on Wednesday, April 23, 2025, at 5:30 p.m.

PLEDGE OF ALLEGIANCE:

Jorge Martinez, Palm Springs High School student, led the Pledge of Allegiance.

ROLL CALL:

Present: Councilmembers Jeffrey Bernstein , Grace Elena Garner, and David Ready ; Mayor Pro Tem Naomi Soto; and Mayor Ron deHarte.

Absent: None.

City Staff Present: Scott Stiles, City Manager; Teresa Gallavan, Assistant City Manager; Flinn Fagg, Deputy City Manager; Jeremy Hammond, Deputy City Manager; Elizabeth Hull, City Attorney; Melissa Cain, Police Captain; and Brenda Pree, City Clerk were present at Roll Call. Other staff members presented reports or responded to questions as indicated in the minutes.

PRESENTATIONS :

A. ECONOMIC DEVELOPMENT UPDATE
Chief Economic Development Officer Wayne Olson presented Adam Fowler of CVL Economics, who provided a presentation.

PROCLAMATIONS:

Mayor deHarte announced the issuance of the following proclamations and/or acknowledgments:
• Helen Hunt Jackson was recognized on April 16 and received the 477th star on the Palm Springs Walk of Stars.
• April 22nd was proclaimed as Earth Day.
• April 26th was recognized as Arbor Day.
• Elinor Harriot was recognized on April 25th with the 478th star on the Palm Springs Walk of Stars. • Palm Springs Gay Men’s Chorus was recognized on April 27th for their 25 years entertainment. • Saving Nature Film Festival Day was acknowledged as May 1st.

Item 1A - Page 1
City Council Minutes April 23, 2025
City of Palm Springs DRAFT MINUTES Page 2

ACCEPTANCE OF THE AGENDA:

MOTION BY MOTION BY COUNCILMEMBER BERNSTEIN, SECOND BY COUNCILMEMBER GARNER, CARRIED 5-0, to accept the agenda with the removal of Consent Calendar Item No. 1 F for separate discussion.

REPORT OF CLOSED SESSION:

The Closed Session of the City Council of April 23 , 2025 , was called to order by Mayor deHarte at 3:30 p.m.

The meeting convened into Closed Session to discuss the following items as listed on the Closed Session Meeting Agenda, with no reportable action:

CONFERENCE WITH LEGAL COUNSEL —EXISTING LITIGATION, Pursuant to Government Code Section 54956.9(d)(1):

Prescott Friesth Griffith and Gregory Wayne Fletcher v. Joseph Ralph Simone II, et al., Riv. Sup.

Ct., No. CVPS2303174

CONFERENCE WITH LEGAL COUNSEL —INITIATION OF LITIGATION , Pursuant to Government Code Section 54956.9(d)(4):

Under existing facts and circumstances, there was one (1) matter.

CONFERENCE WITH LEGAL COUNSEL —SIGNIFICANT EXPOSURE TO LITIGATION , Pursuant to Government Code Section 54956.9(d)(2):

Under existing facts and circumstances, there were two (2) matters.

CONFERENCE WITH LABOR NEGOTIATORS, Pursuant to Government Code Section 54957.6:

City Negotiators:

Employee organization:

Scott Stiles, City Manager
Stephanie George, Human Resources Director
Peter Brown, Legal Counsel
Palm Springs Police Officers Association (PSPOA)
Palm Springs Police Management Association (PSPMA)

PUBLIC TESTIMONY:

Billy Wylie, David Norgard, and Joseph Michael Pitkin provided oral testimony.

1. CONSENT CALENDAR:

MOTION BY COUNCILMEMBER GARNER, SECOND BY COUNCILMEMBER BERNSTEIN, CARRIED 5-0, to approve the Consent Calendar with the removal of Item No. 1 F for separate discussion.

Item 1A - Page 2
City Council Minutes April 23, 2025
City of Palm Springs DRAFT MINUTES Page 3
A. APPROVAL OF MINUTES

MOTION BY COUNCILMEMBER GARNER, SECOND BY COUNCILMEMBER BERNSTEIN, CARRIED 5-0, to: Approve the City Council Meeting Minutes of April 9, 2025.

B. STAFF AUTHORIZED AGREEMENTS AND PURCHASE ORDERS FOR THE PERIOD OF MARCH 1 THROUGH MARCH 31, 2025

MOTION BY COUNCILMEMBER GARNER, SECOND BY COUNCILMEMBER BERNSTEIN, CARRIED 5-0, to: Receive and file the report of Staff Authorized Agreements and Purchase Orders for the period of March 1 through March 31, 2025.

C. APPROVAL OF PAYROLL WARRANTS, CLAIMS AND DEMANDS

MOTION BY COUNCILMEMBER GARNER, SECOND BY COUNCILMEMBER BERNSTEIN, CARRIED 5-0, to: Adopt Resolution No. 25289, entitled "A RESOLUTION OF

THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, APPROVING

PAYMENT OF PAYROLL WARRANTS/DISBURSEMENTS FOR THE PERIOD ENDING 03-15-25 AND 03-29-25 TOTALING $5,217,167.20 AND ACCOUNTS PAYABLE WARRANTS DATED 03 -13-25 AND 03 -27-25 TOTALING $12,072,688.82, IN THE AGGREGATE AMOUNT OF $17,289,856.02 DRAWN ON BANK OF AMERICA."

D. ACCEPTANCE OF A RESIGNATION FROM THE SUSTAINABILITY COMMISSION

MOTION BY COUNCILMEMBER GARNER, SECOND BY COUNCILMEMBER BERNSTEIN, CARRIED 5-0, to: Accept the resignation of Andrew Forster from the Sustainability Commission, effective immediately.

E. APPROVAL OF AMENDMENT NO. 2 TO THE ALLOCATED POSITIONS AND COMPENSATION PLAN FOR FISCAL YEAR 2024-25

COUNCILMEMBER GARNER, SECOND BY COUNCILMEMBER BERNSTEIN, CARRIED 5-0, to: Adopt Resolution No.25290, entitled, “A RESOLUTION OF THE CITY

COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, APPROVING AMENDMENT NO. 2 TO THE ALLOCATED POSITIONS AND COMPENSATION PLAN FOR FISCAL YEAR 2024-2025, ADOPTED BY RESOLUTION NO. 25225.” Authorize the City Manager to execute all documents necessary to effectuate this action.

F. AUTHORIZE THE DISPLAY OF THE JUNETEENTH FLAG AT CITY HALL ON JUNE 19TH

This item was removed from the Consent Calendar for separate discussion and considered under Excluded Consent Calendar.

G. APPROVAL OF A FUNDING/COOPERATIVE AGREEMENT WITH RIVERSIDE

COUNTY FLOOD CONTROL AND WATER CONSERVATION DISTRICT (RCFC)

AND THE CITY FOR THE CONSTRUCTION OF PALM SPRINGS MASTER DRAINAGE PLAN (MDP) LINE 6, STAGE 3

Item 1A - Page 3
City Council Minutes April 23, 2025
City of Palm Springs DRAFT MINUTES Page 4

MOTION BY COUNCILMEMBER GARNER, SECOND BY COUNCILMEMBER BERNSTEIN, CARRIED 5-0, to:

1. Approve a Funding/Cooperative Agreement between the Riverside County Flood Control and Water Conservation District and the City of Palm Springs, associated with the construction, operation, and maintenance of flood control improvements identified as Palm Springs Master Drainage Plan (MDP) Line 6, Stage 3; and

2. Authorize the City Manager to execute all necessary documents.

H. AWARD OF A CONTRACT AND APPROVAL OF TASK ORDERS FOR THE 2025 PAVEMENT REHABILITATION PROJECT (CITY PROJECT NO. 25-01)

INCLUDING APPROVAL OF A CONSTRUCTION CONTRACT TO MATICH

CORPORATION, A CALIFORNIA CORPORATION, IN THE AMOUNT OF $7,903,650; APPROVAL OF A TASK ORDER UNDER ON -CALL AGREEMENT NO.

A8566 WITH DUDEK, INC., IN AN AMOUNT NOT TO EXCEED $205,000 FOR CONSTRUCTION MANAGEMENT AND INSPECTION SERVICES; AND APPROVAL OF A TASK ORDER UNDER ON -CALL AGREEMENT NO. 23PO41 WITH TSG ENTERPRISES, INC., DBA THE SOLIS GROUP, IN AN AMOUNT NOT TO EXCEED $12,900 TO PROVIDE COMMUNITY WORKFORCE AGREEMENT

ADMINISTRATION

MOTION BY COUNCILMEMBER GARNER, SECOND BY COUNCILMEMBER BERNSTEIN, CARRIED 5-0, to:

1. Award a construction contract to Matich Corporation in the amount of $7,903,650 for the 2025 Pavement Rehabilitation, City Project 25-01;

2. Authorize the City Manager to approve a task order for project management and inspection services from an on-call engineering services firm, Dudek, Inc., in an amount not to exceed $205,000;

3. Authorize the City Manager to approve a task order for Community Workforce Agreement (CWA) administration services from an on -call CWA firm, TSG Enterprises, Inc., dba The Solis Group, in an amount not to exceed $12,900;

4. Delegate authority to the City Manager or designee to approve and execute construction contract change orders up to a total amount of $1,000,000 with all change orders reported to the City Council;

5. Appropriate $610,000 from the Wastewater Fund balance; and

6. Authorize the City Manager or his designee to execute all necessary documents.

I. APPROVE CONTRACT SERVICE AGREEMENT 25I099 WITH DIGITAL RADIUS,

LLC TO PROVIDE PROJECT MANAGEMENT SOFTWARE FOR A FIVE -YEAR TERM

MOTION BY COUNCILMEMBER GARNER, SECOND BY COUNCILMEMBER BERNSTEIN, CARRIED 5-0, to:

1. Approve contract services agreement 25I099 with Digital Radius, LLC for a five-year term to provide project management software for an amount not to exceed $223,788.07.

2. Waive the requirement of Section 7.03.02 1(d) of the Palm Springs Municipal Code requiring formal solicitation and accept the informal solicitation process utilized.

3. Authorize the City Manager or designee to execute all necessary documents.

Item 1A - Page 4
City Council Minutes April 23, 2025
City of Palm Springs DRAFT MINUTES Page 5
J. AWARD OF A CONTRACT AND TASK ORDERS FOR THE GENE AUTRY TRAIL WIND WALL (CITY PROJECT NO. 18 -14) INCLUDING APPROVAL OF A CONSTRUCTION CONTRACT TO DEARK E&C INC., A CALIFORNIA
CORPORATION, IN THE AMOUNT OF $2,195,800; APPROVAL OF A TASK ORDER UNDER ON-CALL AGREEMENT NO. A8569 WITH SOUTHSTAR ENGINEERING & CONSULTING I NC., IN AN AMOUNT NOT TO EXCEED $240,666 FOR CONSTRUCTION MANAGEMENT AND INSPECTION SERVICES; AND APPROVAL OF A TASK ORDER UNDER ON -CALL AGREEMENT NO. 23PO41 WITH TSG ENTERPRISES, INC., DBA THE SOLIS GROUP, IN AN AMOUNT NOT TO EXCEED $13,920 TO PROVIDE COMMUNITY WORKFORCE AGREEMENT

ADMINISTRATION

MOTION BY COUNCILMEMBER GARNER, SECOND BY COUNCILMEMBER BERNSTEIN, CARRIED 5-0, to:

1. Award a construction contract to Deark E&C Inc. in the amount of $2,195,800 for the Gene Autry Trail Wind Wall, City Project 18-14 (“Project”);

2. Authorize the City Manager to approve a task order with Southstar Engineering & Consulting Inc., in an amount not to exceed $240,666 for construction management services related to the Project;

3. Authorize the City Manager to approve a task order for Community Workforce Agreement (CWA) administration services from an on-call CWA firm, TSG Enterprises, Inc., DBA The Solis Group, in an amount not to exceed $13,920;

4. Delegate authority to the City Manager or designee to approve and execute construction contract change orders up to a total amount of $439,160 with all change orders reported to the City Council;

5. Appropriate $551,790 from the Capital Fund balance; and

6. Authorize the City Manager or his designee to execute all necessary documents.

K. AWARD OF A CONTRACT AND TASK ORDERS FOR THE INDIAN CANYON SEWER PROJECT (CITY PROJECT NO. 01 -11B) INCLUDING A CONSTRUCTION

CONTRACT TO GRBCON INC, A CALIFORNIA CORPORATION, IN THE AMOUNT OF $8,108,067; APPROVAL OF A TASK ORDER UNDER ON -CALL AGREEMENT A8568 WITH NV5, INC. IN AN AMOUNT NOT TO EXCEED $526,654 FOR CONSTRUCTION MANAGEMENT AND INSPECTION SERVICES; AND APPROVAL OF A TASK ORDER UNDER ON -CALL AGREEMENT NO. 23PO41 WITH TSG ENTERPRISES, INC., DBA THE SOLIS GROUP, IN AN AMOUNT NOT TO EXCEED $27,000 TO PROVIDE COMMUNITY WORKFORCE AGREEMENT
ADMINISTRATION.

MOTION BY COUNCILMEMBER GARNER, SECOND BY COUNCILMEMBER BERNSTEIN, CARRIED 5-0, to:

1. Award a construction contract to GRBCON Inc., in the amount of $8,108,067 for the construction of the Indian Canyon Sewer, City Project 01-11B (“Project”).

2. Authorize the Task Order with NV5, Inc., an on -call Construction Management Services consultant, in an amount not to exceed $526,654 for construction management services and inspection services related to the Project;
Item 1A - Page 5
City Council Minutes April 23, 2025
City of Palm Springs DRAFT MINUTES Page 6

3. Authorize the City Manager to approve a task order for Community Workforce Agreement (CWA) administration services from an on -call CWA firm, The Solis group, in an amount not to exceed $27,000;

4. Delegate authority to the City Manager or designee to approve and execute construction contract change orders up to a total amount of $1,225,000 with all change orders reported to the City Council.

5. Appropriate $9,916,721 from the Wastewater Fund Balance.

6. Authorize the City Manager or his designee to execute all necessary documents.

L. ACCEPT AN AWARD FROM THE U.S. DEPARTMENT OF JUSTICE IN THE AMOUNT OF $18,815, APPROVE AN INTERLOCAL AGREEMENT WITH OTHER

PARTICIPATING RIVERSIDE COUNTY CITIES AND THE COUNTY OF

RIVERSIDE, AND AUTHORIZE ADMINISTRATION OF THE GRANT

MOTION BY COUNCILMEMBER GARNER, SECOND BY COUNCILMEMBER BERNSTEIN, CARRIED 5-0, to:

1. Approve the acceptance of a grant award from the United States Department of Justice in the amount of $18,815 for the 2023 Justice Assistance Grant (JAG) Program.

2. Approve Interlocal Agreement 25G092 with the County of Riverside and various cities within Riverside County, authorizing the County of Riverside to administer the grant on behalf of participating agencies.

3. Authorize the City Manager to execute all necessary documents.

M. REJECT ALL BIDS FOR THE AIRPORT BAGGAGE HANDLING SYSTEM IN-LINE SCREENING PROJECT, AIRPORT PROJECT PSP-04

MOTION BY COUNCILMEMBER GARNER, SECOND BY COUNCILMEMBER BERNSTEIN, CARRIED 5-0, to:

1. Reject the bid received on March 20, 2025 for the Airport Baggage Handling System In-Line Screening, Airport Project PSP-04 (the “Project”); and

2. Authorize Staff to rebid the Project.

N. RATIFYING THE ANNUAL ADJUSTMENT OF THE ACCESS LINE RATE PURSUANT TO PALM SPRINGS MUNICIPAL CODE 3.39.050 APPROVED BY VOTERS BY MEASURE “G”

MOTION BY COUNCILMEMBER GARNER, SECOND BY COUNCILMEMBER BERNSTEIN, CARRIED 5-0, to: Adopt Resolution No. 25291, entitled, “A RESOLUTION

OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, RATIFYING

THE ANNUAL ADJUSTMENT OF THE ACCESS LINE RATE PURSUANT TO PALM SPRINGS MUNICIPAL CODE §3.39.050 APPROVED BY VOTERS BY MEASURE “G.”

O. APPROVAL OF PLANS, SPECIFICATIONS, AND ESTIMATE (PS&E) AND

AUTHORIZATION TO BID THE PALM SPRINGS PUBLIC LIBRARY RENOVATION PROJECT, CITY PROJECT 16-08

MOTION BY COUNCILMEMBER GARNER, SECOND BY COUNCILMEMBER BERNSTEIN, CARRIED 5-0, to:

Item 1A - Page 6
City Council Minutes April 23, 2025
City of Palm Springs DRAFT MINUTES Page 7

1. Approve the plans, specifications and estimate and authorize Staff to advertise and solicit bids for the Palm Springs Public Library Renovation Project, City Project 16 -08 (“the Project”).

2. Authorize the City Manager to execute all necessary documents.

P. APPROVE CONTRACT SERVICES AGREEMENT NO. 25P094 WITH CONSTANT TECHNOLOGIES, INC., FOR REAL TIME OPERATIONS CENTER FOR PALM

SPRINGS POLICE DEPARTMENT

MOTION BY COUNCILMEMBER GARNER, SECOND BY COUNCILMEMBER BERNSTEIN, CARRIED 5-0, to:

1. Approve Contract Services Agreement No. 25P094 with Constant Technologies, Inc. to provide design, delivery, installation, and project management to set up a Real Time Operations Center in an amount not to exceed $518,742.17.

2. Authorize the City Manager or designee to execute all necessary documents.

Q. APPROVE CONTRACT SERVICE AGREEMENT NO. 25S064 WITH VERIZON

CONNECT FLEET USA LLC, TO PROVIDE VEHICLE TELEMATICS AND GPS

MONITORING SERVICES

MOTION BY COUNCILMEMBER GARNER, SECOND BY COUNCILMEMBER BERNSTEIN, CARRIED 5-0, to:

1. Approve Contract Service Agreement 25S064 with Verizon Connect Fleet USA LLC, to provide vehicle telematic GPS monitoring services in the amount not to exceed $259,934, for an initial three-year term beginning April 28, 2025, through April 27, 2028, with two one - year extension options at the City’s sole discretion;

2. Authorize the City Manager or designee to execute any necessary documents.

R. SECOND READING AND ADOPTION OF ORDINANCE NO. 2110, “AN ORDINANCE

OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING SECTION 2.29.010 OF THE PALM SPRINGS MUNICIPAL CODE TO

EXPAND THE PLANNING COMMISSION TO EIGHT MEMBERS, SEVEN VOTING MEMBERS AND ONE NON-VOTING MEMBER.”

MOTION BY COUNCILMEMBER GARNER, SECOND BY COUNCILMEMBER BERNSTEIN, CARRIED 5-0, to: Waive the second reading of text in its entirety, read by title only, and adopt Ordinance No. 2110, “AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING SECTION 2.29.010 OF THE PALM

SPRINGS MUNICIPAL CODE TO EXPAND THE PLANNING COMMISSION TO EIGHT MEMBERS, SEVEN VOTING MEMBERS AND ONE NON-VOTING MEMBER.”

EXCLUDED CONSENT CALENDAR:

F. AUTHORIZE THE DISPLAY OF THE JUNETEENTH FLAG AT CITY HALL ON JUNE 19TH

MOTION BY COUNCILMEMBER BERNSTEIN, SECOND BY MAYOR PRO TEM SOTO , CARRIED 5-0, to: Authorize City staff to display the Juneteenth flag at City Hall on June 1 9th through Monday, June 23, 2025, at all City buildings.

Item 1A - Page 7
City Council Minutes April 23, 2025
City of Palm Springs DRAFT MINUTES Page 8

2. PUBLIC HEARINGS:

A. ADOPT A RESOLUTION APPROVING THE 2025–2029 CONSOLIDATED PLAN, THE 2025 ANALYSIS OF IMPEDIMENTS TO FAIR HOUSING CHOICE, THE 2025 –2026

COMMUNITY DEVELOPMENT BLOCK GRANT ANNUAL ACTION PLAN, AND

THE COMMUNITY DEVELOPMENT BLOCK GRANT BUDGET FOR FISCAL YEAR 2025–2026; AUTHORIZING SUBMITTAL OF THE PLANS AND BUDGET TO THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT; AND

AUTHORIZING THE CITY MANAGER TO EXECUTE ALL ASSOCIATED
AGREEMENTS; AND APPROVE THE UPDATED OWNER-OCCUPIED HOME

REHABILITATION PROGRAM GUIDELINES

MOTION BY COUNCILMEMBER READY, SECOND BY COUNCILMEMBER GARNER, CARRIED 5-0, to:

1. Open the Public Hearing for public testimony.

2. Adopt Resolution No. 25292, entitled, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, APPROVING THE 2025 –2029 CONSOLIDATED PLAN, 2025 ANALYSIS OF IMPEDIMENTS TO FAIR HOUSING CHOICE, 2025 –2026 COMMUNITY DEVELOPMENT BLOCK GRANT ANNUAL

ACTION PLAN, AND COMMUNITY DEVELOPMENT BLOCK GRANT BUDGET FOR FISCAL YE AR 2025 –2026; AUTHORIZING SUBMITTAL OF THE PLANS AND BUDGET TO THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT;

AND AUTHORIZING THE CITY MANAGER TO EXECUTE ALL ASSOCIATED AGREEMENTS.”

MOTION BY COUNCILMEMBER BERNSTEIN, SECOND BY MAYOR PRO TEM SOTO, CARRIED 5 -0, to: Approve the updated Owner -Occupied Home Rehabilitation Program Guidelines.

B. CONDUCT A PUBLIC HEARING UNDER SECTION 53083 OF THE CALIFORNIA GOVERNMENT CODE AND UNDER CHAPTER 5.26 OF THE CITY’S HOTEL

OPERATIONS INCENTIVE PROGRAM, APPROVE A HOTEL OPERATIONS

COVENANT BETWEEN THE CITY OF PALM SPRINGS AND NEW CHURCH II,

LLC, A NEVADA LIMITED LIABILITY COMPANY, AND ARENAS BELARDO PS,

LLC, A NEVADA LIMITED LIABILITY COMPANY, AND CAHUILLA CHURCH,

LLC, A NEVADA LIMITED LIABILITY COMPANY, COLLECTIVELY THE OWNER

Brian Hurd, Tempe Essell, Peter Moruzzi, Paul Travis, Jim Kisel, Mark Fichandler, Rick Kammerer, and Richard Weintraub provided public hearing oral testimony.

MOTION BY MOTION BY COUNCILMEMBER READY, SECOND BY MAYOR PRO TEM SOTO, CARRIED 5-0, as amended, to:

1. Open the public hearing and receive public testimony; and,

2. Approve an amended Hotel Operations Covenant Agreement with The Orchid Tree Hotel and Owner; and,

3. Authorize the City Manager and City Attorney to make non-substantive changes and execute all necessary documents related to the subsidy.

Item 1A - Page 8
City Council Minutes April 23, 2025
City of Palm Springs DRAFT MINUTES Page 9

C. REVIEW AND ADOPTION OF THE USER FEE STUDY/COST ALLOCATION PLAN AND REVISED COMPREHENSIVE FEE SCHEDULE FOR FISCAL YEAR 2025/2026

The item was tabled.

3. BUSINESS & LEGISLATIVE: None.

PUBLIC COMMENT:

Michael Joseph Pitkin and Michael Marquez provided non-agenda oral testimony.

CITY COUNCIL AND CITY MANAGER COMMENTS, REPORTS, & AGENDA DEVELOPMENT:

City Manager Stiles and the City Council discussed the tentative upcoming meeting schedule and agenda items.

ADJOURNMENT:

The City Council adjourned the regular meeting of Wednesday, April 23, 2025, at 7:40 p.m.

Respectfully submitted,

_________________________
Brenda Pree, MMC, CERA
City Clerk

DRAFT MINUTES PRESENTED TO CITY COUNCIL: 5/14/2025

Item 1A - Page 9

CITY COUNCIL STAFF REPORT
05/14/2025
SUBJECT:

APPOINTMENT TO THE PLANNING COMMISSION
RECOMMENDATION:

Appoint Megan Rodriguez to the Planning Commission, as a non-voting member, for a term expiring on June 30, 2028; the term shall take effect 30 days after the final adoption of Ordinance No. 2110.

Attachments
Item 1B

CITY COUNCIL STAFF REPORT
D
ATE: May 14, 2025 CONSENT CALENDAR
S
UBJECT:

F
ROM:

BY:

APPOINTMENT TO THE PLANNING COMMISSION
Scott C. Stiles, City Manager
Office of the City Clerk
RECOMMENDATION:

Appoint Megan Rodriguez to the Planning Commission, as a non- voting member, for a term expiring on June 30, 2028; the term shall take effect 30 days after the final adoption of Ordinance No. 2110.

BACKGROUND:

On
April 23, 2025, the City Council approved the final adoption of Ordinance No. 2110 to amend chapter 2.29.010 of the Palm Springs Municipal Code to expand the Planning Commission to eight members: seven voting members and one non-voting member.

T
he amendment introduced the non- voting member to the Commission's composition.

The eighth, non- voting member shall not be counted toward quorum requirements, nor toward required vote counts, and limited to one, three- year term without the option for reappointment. The eighth non-voting members’ appointment shall not count towards City term limits, nor will it guarantee appointment as a full member of the Commission in the future. The objective of appointing this new member is to provide opportunities for gaining experience and insight into the workings of the Planning Commission, thereby preparing the individual for future membership on the Commission. Although the eighth member will not possess voting rights, they will be permitted to engage actively in discussions.

D
uring the Special City Council meeting on June 6, 2024, the City Council recommended Megan Rodriguez to fill the non- voting position, pending codification of the proposed ordinance.

T
he City Council appointed Mayor deHarte and Mayor Pro Tem Soto to an Ad Hoc Subcommittee to screen applications and conduct interviews to fill vacancies on various Boards and Commissions. With this action, there are two (2 ) vacanc ies within the Administrative Appeals Board (one of which is an alternate position), one (1) vacancy on the Human Rights Commission, one (1) vacancy on the Library Board, and two (2 ) vacancies on the Sustainability Commission . The annual recruitment closed April 30, 2025, and applications are currently being reviewed by the Council.

Item 1B - Page 1
City Council Staff Report
May 14, 2025 -- Page 2
Appointment to Planning Commission

FISCAL IMPACT:

None.

REVIEWED BY:

Department Director: Brenda Pree
City Manager: Scott Stiles

ATTACHMENTS:

A. Ordinance No. 2110 (adding non-voting member to Planning Commission)

Item 1B - Page 2

ATTACHMENT A
Item 1B - Page 3
ORDINANCE NO. 2110

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF

PALM SPRINGS, CALIFORNIA, AMENDING SECTION

2.29.010 OF THE PALM SPRINGS MUNICIPAL CODE TO

EXPAND THE PLANNING COMMISSION TO EIGHT

MEMBERS, SEVEN VOTING MEMBERS AND ONE
NON-VOTING MEMBER.

City Attorney’s Summary
This ordinance expands the City’s Planning Commission from seven to eight members.

WHEREAS, t he City of Palm Springs (“City”) is a charter city organized pursuant to Article XI, Section 5 of the California Constitution and pursuant to the authority so granted, the City has the power to make and enforce within its limits all ordinances and regulations with respect to municipal affairs not in conflict with its own charter.

WHEREAS, Chapter 2.29 of the Palm Springs Municipal Code establishes the Planning Commission and the number of members the commission shall consist of.

WHEREAS, expanding the membership of the Planning Commission from seven to eight members, seven voting members and one non- voting member, will provide the necessary support and resources to effectively manage and implement the growing number of planning projects and developments within the City; and WHEREAS, the non -voting member of the commission shall be limited to one, three-year term, which shall not count towards City term limits.

TH

E CITY COUNCIL OF THE CITY OF PALM SPRINGS DOES HEREBY
ORDAIN AS FOLLOWS:

SECTION 1. Findings. That the findings and determinations reflected above are true and correct, and are incorporated by this reference herein as the cause and foundation for the action taken by the and through this Ordinance.

SECTION 2. Amendment of Palm Springs Municipal Code Section 2.29.010 .

Section 2.29.010 of the Palm Springs Municipal Code is hereby amended to read as follows:
“2.29.
010 Created.

Pursuant to Section 65100 et seq. of the California Planning and Zoning Law, there has been and hereby is established for the city a planning agency, consisting of a planning department, a planning commission, and the city council acting in combination. The planning commission consists and shall consist of seven eight Item 1B - Page 4

Ordinance No. 2110

members, seven voting members and one non- voting member, serving without compensation, and appointed in the manner and for the terms prescribed in Sections

2.04.060 and 2.06.010 respectively, of this code. The eighth non-voting member shall not be counted toward quorum requirements, nor toward required vote counts, and is limited to one, three- year term which does not count towards City term limits prescribed in Title 2 of this code. T he eighth non- voting member shall not have the opportunity for reappointment as a non-voting member, nor will appointment as a non- voting member guarantee appointment as a full member of the planning commission.

It The Planning Commission shall have the powers, functions and duties prescribed in the Planning and Zoning Law and in the Palm Springs zoning ordinance and in this code and other local ordinances, provided that it shall not exercise any direct contracting authority as specified in Section 65007 of the planning and zoning law.

SECTION 3. Compliance with California Environmental Quality Act. The City Council finds that this Ordinance is not subject to the California Environmental Quality Act (“CEQA”) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the State CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. Further, if the activity is deemed a project this City Council finds that this Ordinance is exempt pursuant to Section 15061(b)(3) of the State CEQA Guidelines, as it can be seen with certainty that there is no possibility that this Ordinance may have a significant effect on the environment.

SECTION 4. Severability. If any section, sentence, clause or phrase of this Ordinance or the application thereof to any entity, person or circumstance is held for any reason to be invalid or unconstitutional, such invalidity or unconstitutionality shall not affect other provisions or applications of this Ordinance which can be given effect without the invalid provision or application, and to this end the provisions of this Ordinance are severable. The City Council of the City of Palm Springs hereby declares that it would have adopted this Ordinance and each section, sentence, clause or phrase there of, irrespective of the fact that any one or more section, subsections, sentences, clauses or phrases be declared invalid or unconstitutional.

SECTION 5. Effective Date. This Ordinance shall become effective thirty (30) days following its adoption.

Item 1B - Page 5

Ordinance No. 2110

PASSED, APPROVED, AND ADOPTED BY THE PALM SPRINGS CITY COUNCIL THIS 23RD DAY OF APRIL 2025.

RON DEHARTE
MAYOR

ATTEST:

BRENDA PREE, MMC, CERA

CITY CLERK

CERTIFICATION

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.

CITY OF PALM SPRINGS )

I, BRENDA PREE, City Clerk of the City of Palm Springs, California, do hereby certify that Ordinance No. 21 10 is a full, true, and correct copy, and was introduced at a regular meeting of the Palm Springs City Council on the 9th day of April, 2025 and adopted at a regular meeting of the City Council held on the 23rd day of April, 2025 by the following vote:

AYES: Councilmembers Ready, Garner, Bernstein, Mayor Pro Tem Soto, and Mayor deHarte
NOES: None
ABSENT: None
ABSTAIN: None

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Palm Springs, California, this ___ day of May, 2025.

___

BRENDA PREE, MMC, CERA

CITY CLERK
Item 1B - Page 6

CITY COUNCIL STAFF REPORT
05/14/2025
SUBJECT:

APPROVAL OF PAYROLL WARRANTS, CLAIMS AND DEMANDS
RECOMMENDATION:

Adopt a Resolution entitled “A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF PALM SPRINGS, CALIFORNIA, APPROVING PAYMENT OF PAYROLL WARRANTS/DISBURSEMENTS FOR THE PERIOD ENDING 04-12-25 TOTALING $2,660,830.23 AND ACCOUNTS PAYABLE WARRANTS DATED 04-10-25 TOTALING $7,310,464.54 IN THE AGGREGATE AMOUNT OF $9,971,294.77 DRAWN ON BANK OF AMERICA."
Attachments
Item 1C
RESOLUTION NO. _____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

PALM SPRINGS, CALIFORNIA, APPROVING PAYMENT OF

PAYROLL WARRANTS/DISBURSEMENTS FOR THE
PERIOD ENDING 04-12-25 TOTALING $2,660,830.23 AND
ACCOUNTS PAYABLE WARRANTS DATED 04-10- 25
TOTALING $7,310,464.54 IN THE AGGREGATE AMOUNT
OF $9,971,294.77 DRAWN ON BANK OF AMERICA.

WHEREAS the Director of Finance has, in accordance with Chapter 3.16 of the Palm Springs Municipal Code, audited the payroll records covering the subject warrants and audited the claims and demands shown on the attached list; and

WHEREAS the Director of Finance hereby certifies to the accuracy of said records and to the availability of funds for payment.

Kristopher J. Mooney
Director of Finance and Treasury

NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Palm Springs, California, that payroll warrants, claims, demands and liability checks have been audited as required by law and that said warrants are hereby approved for payment.

ADOPTED THIS 14TH DAY OF MAY, 2025
.

SCOTT STILES

CITY MANAGER

ATTEST:

BRENDA PREE

CITY CLERK
Item 1C - Page 1
Resolution No. _____

CERTIFICATION

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.

CITY OF PALM SPRINGS )

I, BRENDA PREE , City Clerk of the City of Palm Springs, h ereby certify that Resolution No. ____ is a full, true and correct copy, and was duly adopted at a regular meeting of the City Council of the City of Palm Springs on _______________________, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Palm Springs, California, this ______ day of ______________, _________.

BRENDA PREE

CITY CLERK
Item 1C - Page 2

INTEROFFICE MEMORANDUM
TO: City Council
FROM: Kristopher J. Mooney, Director of Finance and Treasurer DATE:

RE: Payroll Wires and Warrants
TOTAL 2,660,830.23
DEFERRED COMP: NATIONWIDE 36,380.13
ICMA RHS CONTRIBUTION 27,787.50
CA DCCS 5,937.16
STATE TAXES 131,659.35
VENDOR WIRE PYMTS 6,929.29
DEFERRED COMP: ICMA 457 60,808.68
FEDERAL TAXES 386,090.37
Transaction Type Check Numbers Amount
PAYROLL CHECK REGISTER 423003-423013 20,455.67
LIABILITY CHECK REGISTER 2023381 - 2023394 37,089.27
PAYROLL DIRECT DEPOSITS 1,947,692.81
PAY DATE 4/18/2025
May 14, 2025
PAYROLL PERIOD ENDING 4/12/2025
(2) Payroll Wires and Warrants Memo for PPE 041225 | 042325 |4/28/2025 | 4:03 PM (AM) 1 | 1 Item 1C - Page 3
City of Palm Springs, CA

AP CHECK RECONCILIATION REGISTER
Report generated: 04/10/2025 15:17
User: PatrickW
Program ID: apchkrcn

FOR CASH ACCOUNT: 999 10005 FOR: All CHECK # CHECK DATE TYPE VENDOR NAME UNCLEARED CLEARED BATCH CLEAR DATE 2023105 04/10/2025 PRINTED 100292 ADMINSURE INC 20,593.00 2023106 04/10/2025 PRINTED 104389 AECOM TECHNICAL SERVICES 537,925.61 2023107 04/10/2025 PRINTED 100403 AETNA 18,677.13 2023108 04/10/2025 PRINTED 104401 HEALTH AND HUMAN RESOURCE 2,217.30 2023109 04/10/2025 PRINTED 100660 AIRGAS USA LLC 273.94 2023110 04/10/2025 PRINTED 101272 AIRWAVE COMMUNICATIONS EN 1,674.16 2023111 04/10/2025 PRINTED 104599 MAMCO INC 31,786.11 2023112 04/10/2025 PRINTED 105239 COLE ALLEN 65.00 2023113 04/10/2025 PRINTED 103797 ALLISON MECHANICAL INC 8,839.52 2023114 04/10/2025 PRINTED 101337 ALPHA PETROLEUM TRANSPORT 266.87 2023115 04/10/2025 PRINTED 100572 AMAZON COM 85.19 2023116 04/10/2025 PRINTED 103781 AMAZON.COM SALES INC 2,297.61 2023117 04/10/2025 PRINTED 100383 AMERICAN FORENSIC NURSES 692.72 2023118 04/10/2025 PRINTED 100565 AMERICAN PUBLIC WORKS ASS 1,595.50 2023119 04/10/2025 PRINTED 100415 AMERICAN NATIONAL RED CRO 2,840.00 2023120 04/10/2025 PRINTED 104248 AMS.NET INC 27.19 2023121 04/10/2025 PRINTED 104726 ACCENTURE LLP 7,410.00 2023122 04/10/2025 PRINTED 100879 ARCCOPS 300.00 2023123 04/10/2025 PRINTED 103528 ARCHITECTURAL RESOURCES G 37,902.90 2023124 04/10/2025 PRINTED 104903 ERIC ARROYO 1,700.00 2023125 04/10/2025 PRINTED 100370 AT&T 309.07 2023126 04/10/2025 PRINTED 101345 LUIS AZARCOYA 550.00 2023127 04/10/2025 PRINTED 103994 BANNER BANK 5,509.64 2023128 04/10/2025 PRINTED 105223 WILLIAM C BARKLEY 3,200.00 2023129 04/10/2025 PRINTED 104540 BARRY SAYWITZ PROPERTIES 6,620.00 2023130 04/10/2025 PRINTED 100020 BEST BEST & KRIEGER 326.79 2023131 04/10/2025 PRINTED 100139 BEST SIGNS INC. 323.38 2023132 04/10/2025 PRINTED 100366 BIO TOX LABORATORIES 3,288.00 2023133 04/10/2025 PRINTED 101696 BLACK AND WHITE EMERGENCY 5,200.00 2023134 04/10/2025 PRINTED 105237 THE BLUE MOON TRUST 120.17 2023135 04/10/2025 PRINTED 100207 BLUE SHIELD OF CALIFORNIA 658,490.37 2023136 04/10/2025 PRINTED 016500 ARMANDO BONILLA 1,076.19 2023137 04/10/2025 PRINTED 100568 BOYS AND GIRLS CLUB OF PA 45,513.00 2023138 04/10/2025 PRINTED 104043 MARCONI CALINDAS-CAFEGE 100.00 2023139 04/10/2025 PRINTED 100551 CAPIO 30.00 2023140 04/10/2025 PRINTED 016155 JAVIER CARRILLO 2,300.00 2023141 04/10/2025 PRINTED 101477 CASL INTERPRETING 760.00 2023142 04/10/2025 PRINTED 100112 CDW GOVERNMENT INC 529.85 2023143 04/10/2025 PRINTED 100353 CHARTER COMMUNICATIONS 199.99 2023144 04/10/2025 PRINTED 100353 CHARTER COMMUNICATIONS / 81.24 2023145 04/10/2025 PRINTED 100308 CLINICAL LABORATORY OF SA 40.00 2023146 04/10/2025 PRINTED 101755 CNS ENGINEERS INC 291,390.28 2023147 04/10/2025 PRINTED 100029 COACHELLA VALLEY ASSOCIAT 7,745.00 2023148 04/10/2025 PRINTED 104851 CODE STUDIO INC 39,447.35 2023149 04/10/2025 PRINTED 104773 TIFFANY COLLINS 100.00 2023150 04/10/2025 PRINTED 104778 COMMONWEALTH BUSINESS BAN 89,976.92 2023151 04/10/2025 PRINTED 101744 COMPRESSED AIR SPECIALTIE 1,148.40 2023152 04/10/2025 PRINTED 100196 COUNTY OF RIVERSIDE 10,000.00 2023153 04/10/2025 PRINTED 104871 COURTYARD PARTNERS PALM S 6,800.00 2023154 04/10/2025 PRINTED 010915 JARVIS CRAWFORD 89.95 2023155 04/10/2025 PRINTED 104344 DAMON CURTIS CSER 100.00 2023156 04/10/2025 PRINTED 100490 COACHELLA VALLEY CONSERVA 3,747.15 Item 1C - Page 4
.. -: ,,,. . • ••• ~. mun1s· ~ a tyler erp solution
City of Palm Springs, CA

AP CHECK RECONCILIATION REGISTER
Report generated: 04/10/2025 15:17
User: PatrickW
Program ID: apchkrcn

FOR CASH ACCOUNT: 999 10005 FOR: All
CHECK # CHECK DATE TYPE VENDOR NAME UNCLEARED CLEARED BATCH CLEAR DATE 2023157 04/10/2025 PRINTED 100115 DANIELS TIRE SERVICE INC 10,923.12 2023158 04/10/2025 PRINTED 100318 DATA TICKET INC 6,543.24 2023159 04/10/2025 PRINTED 104343 LENA DAVIS 100.00
2023160 04/10/2025 PRINTED 101281 DELTA DENTAL INSURANCE CO 2,487.28 2023161 04/10/2025 PRINTED 101282 DELTA DENTAL OF CALIFORNI 24,217.54 2023162 04/10/2025 PRINTED 100067 DEMCO 33.44
2023163 04/10/2025 PRINTED 100091 STATE OF CA - DEPARTMENT 1,613.53 2023164 04/10/2025 PRINTED 100195 DEPARTMENT OF JUSTICE-ACC 833.00 2023165 04/10/2025 PRINTED 103589 DESERT ARC 45.00
2023166 04/10/2025 PRINTED 100048 DESERT FIRE EXTINGUISHER 12,128.00 2023167 04/10/2025 PRINTED 100580 DESERT PROMOTIONAL EMBROI 1,822.92 2023168 04/10/2025 PRINTED 101751 DIAMOND ENVIRONMENTAL SER 574.22 2023169 04/10/2025 PRINTED 104306 EMMANUEL DOUBLIN 100.00 2023170 04/10/2025 PRINTED 101244 DOWNS ENERGY 30,563.24 2023171 04/10/2025 PRINTED 100393 GERGIS YOUSEF 5,444.16 2023172 04/10/2025 PRINTED 100984 DTPS C-15 LLC 3,376.53 2023173 04/10/2025 PRINTED 105230 DAVID DANIEL DUDT 100.00 2023174 04/10/2025 PRINTED 105238 TRISTAN DUNCAN 65.00
2023175 04/10/2025 PRINTED 100054 DESERT WATER AGENCY 2,345.34 2023176 04/10/2025 PRINTED 100305 EISENHOWER MEDICAL CENTER 3,200.00 2023177 04/10/2025 PRINTED 101293 ENGIE SERVICES U.S. INC. 184,254.00 2023178 04/10/2025 PRINTED 100274 ENGINEERING RESOURCES OF 42,714.80 2023179 04/10/2025 PRINTED 100300 ESRI 42,200.00
2023180 04/10/2025 PRINTED 100081 FEDERAL EXPRESS CORPORATI 35.11 2023181 04/10/2025 PRINTED 103951 FERREIRA CONSTRUCTION CO 45,861.25 2023182 04/10/2025 PRINTED 103451 FIESTA FORD INC 16,002.96 2023183 04/10/2025 PRINTED 101575 FIRETRUCKS UNLIMITED LLC 20,775.49 2023184 04/10/2025 PRINTED 101194 FLEX ADVANTAGE 672.00 2023185 04/10/2025 PRINTED 105231 MARISOL ISRAELI GOMEZ FON 100.00 2023186 04/10/2025 PRINTED 104699 FRASCA AND ASSOCIATES LLC 17,425.00 2023187 04/10/2025 PRINTED 100740 FRONTIER COMMUNICATIONS C 1,127.73 2023188 04/10/2025 PRINTED 100740 FRONTIER COMMUNICATIONS C 8,253.83 2023189 04/10/2025 PRINTED 100740 FRONTIER COMMUNICATIONS C 1,891.45 2023190 04/10/2025 PRINTED 100740 FRONTIER COMMUNICATIONS C 485.93 2023191 04/10/2025 PRINTED 100740 FRONTIER COMMUNICATIONS C 96.12 2023192 04/10/2025 PRINTED 100740 FRONTIER COMMUNICATIONS C 180.48 2023193 04/10/2025 PRINTED 100740 FRONTIER COMMUNICATIONS C 105.20 2023194 04/10/2025 PRINTED 100740 FRONTIER COMMUNICATIONS C 851.26 2023195 04/10/2025 PRINTED 101683 FS.COM INC 455.60
2023196 04/10/2025 PRINTED 104046 GALLAGHER BENEFIT SERVICE 18,750.00 2023197 04/10/2025 PRINTED 016236 RICKEY GANDHI 382.00
2023198 04/10/2025 PRINTED 101958 CORINNE GRISWOLD 183.54 2023199 04/10/2025 PRINTED 100169 GENSLER 10,366.85
2023200 04/10/2025 PRINTED 100536 GLS US A/R 7.53
2023201 04/10/2025 PRINTED 103824 GOVOS INC 7,500.00
2023202 04/10/2025 PRINTED 100313 GRANICUS INC 14,935.29 2023203 04/10/2025 PRINTED 100681 GREATER PALM SPRINGS PRID 2,500.00 2023204 04/10/2025 PRINTED 104516 GROUP 4 ARCHITECTURE RESE 28,180.00 2023205 04/10/2025 PRINTED 016631 JOSE GUERRERO III 882.11 2023206 04/10/2025 PRINTED 101343 HARRIS AND ASSOCIATES INC 149,410.31 2023207 04/10/2025 PRINTED 104625 HERITAGE PALM SPRINGS INV 6,002.20 2023208 04/10/2025 PRINTED 102402 HJH CONSTRUCTION 800.00 Item 1C - Page 5
.. -: ,,,. . • ••• ~. mun1s· ~ a tyler erp solution
City of Palm Springs, CA

AP CHECK RECONCILIATION REGISTER
Report generated: 04/10/2025 15:17
User: PatrickW
Program ID: apchkrcn

FOR CASH ACCOUNT: 999 10005 FOR: All CHECK # CHECK DATE TYPE VENDOR NAME UNCLEARED CLEARED BATCH CLEAR DATE 2023209 04/10/2025 PRINTED 105130 JACK HOWARD-POTTER 20,000.00 2023210 04/10/2025 PRINTED 016154 JASMINE HUGHES 50.00 2023211 04/10/2025 PRINTED 105236 KIPP O HUTCHESON 59.00 2023212 04/10/2025 PRINTED 104722 WAYNE MCAFEE 3,500.00 2023213 04/10/2025 PRINTED 101300 ILLINOIS LIBRARY ASSOCIAT 2,324.10 2023214 04/10/2025 PRINTED 101421 IMPRESSION DESIGN GROUP 1,340.11 2023215 04/10/2025 PRINTED 100483 INFOSAT 226.38 2023216 04/10/2025 PRINTED 100119 INTERACTIVE DESIGN CORPOR 23,169.25 2023217 04/10/2025 PRINTED 104298 INTERVISTAS CONSULTING US 27,146.50 2023218 04/10/2025 PRINTED 104575 INVESTMENT CONCEPTS 5,791.54 2023219 04/10/2025 PRINTED 101700 JNS MEDIA SPECIALISTS INC 438.99 2023220 04/10/2025 PRINTED 100177 KIMLEY HORN AND ASSOCIATE 206,937.86 2023221 04/10/2025 PRINTED 104139 DIRK KLICK 84.49 2023222 04/10/2025 PRINTED 104712 KOUNKUEY DESIGN INITIATIV 15,260.05 2023223 04/10/2025 PRINTED 100127 L N CURTIS AND SONS 7,580.73 2023224 04/10/2025 PRINTED 016428 JUSTIN LAWLER 690.00 2023225 04/10/2025 PRINTED 101225 LAZ PARKING CALIFORNIA LL 25,591.92 2023226 04/10/2025 PRINTED 101768 LEXIPOL LLC 11,334.97 2023227 04/10/2025 PRINTED 016368 CAMERON LOPEZ 564.25 2023228 04/10/2025 PRINTED 011022 JAIME MACIAS 624.79 2023229 04/10/2025 PRINTED 104358 JESSICA MACIAS 100.00 2023230 04/10/2025 PRINTED 100849 MANSFIELD POWER AND GAS L 11,538.25 2023231 04/10/2025 PRINTED 100074 MATICH CORPORATION 222,632.07 2023232 04/10/2025 PRINTED 101253 MAXIMUM SECURITY ALARM SY 200.00 2023233 04/10/2025 PRINTED 104365 MEDIWASTE DISPOSAL LLC 201.95 2023234 04/10/2025 PRINTED 101798 MIDWEST TAPE INC 1,346.73 2023235 04/10/2025 PRINTED 016175 CHERIE MILLER 851.04 2023236 04/10/2025 PRINTED 100266 MIRACLE RECREATION EQUIPM 877.97 2023237 04/10/2025 PRINTED 105127 MISTRAS GROUP INC 3,700.00 2023238 04/10/2025 PRINTED 100079 MOHICA TOWING 1,399.00 2023239 04/10/2025 PRINTED 103876 MONOPRICE INC 470.58 2023240 04/10/2025 PRINTED 016166 JOEL MONTALVO 1,223.27 2023241 04/10/2025 PRINTED 015596 VICTOR MOROLES 311.30 2023242 04/10/2025 PRINTED 101748 MOTOROLA SOLUTIONS INC 118,968.95 2023243 04/10/2025 PRINTED 104922 MAURO P GARCIA 5,767.03 2023244 04/10/2025 PRINTED 101304 MWH CONSTRUCTORS INC 79,824.00 2023245 04/10/2025 PRINTED 100434 MYERS & SONS HI-WAY SAFET 62,659.20 2023246 04/10/2025 PRINTED 103465 DESERT AREA CORPORATION 9,176.45 2023247 04/10/2025 PRINTED 104404 NETWORK SERVICES COMPANY 18,020.63 2023248 04/10/2025 PRINTED 103900 ODP BUSINESS SOLUTIONS 28,129.88 2023249 04/10/2025 PRINTED 103900 ODP BUSINESS SOLUTIONS 7,441.74 2023250 04/10/2025 PRINTED 016580 WAYNE OLSON 166.01 2023251 04/10/2025 PRINTED 100756 ONE PS 2,122.76 2023252 04/10/2025 PRINTED 104612 OOTTRR INC 78,750.00 2023253 04/10/2025 PRINTED 104349 STEVEN PABST 100.00 2023254 04/10/2025 PRINTED 105227 JADEN SEAN PACIA 100.00 2023255 04/10/2025 PRINTED 100282 PACIFIC PRODUCTS AND SERV 4,622.44 2023256 04/10/2025 PRINTED 105229 JAIME PAJARITO 100.00 2023257 04/10/2025 PRINTED 100569 PALM SPRINGS CHAMBER OF C 3,333.33 2023258 04/10/2025 PRINTED 100569 PALM SPRINGS CHAMBER OF C 3,333.33 2023259 04/10/2025 PRINTED 100569 PALM SPRINGS CHAMBER OF C 5,776.74 2023260 04/10/2025 PRINTED 100569 PALM SPRINGS CHAMBER OF C 5,776.74 Item 1C - Page 6
.. -: ,,,. . • ••• ~. mun1s· ~ a tyler erp solution
City of Palm Springs, CA

AP CHECK RECONCILIATION REGISTER
Report generated: 04/10/2025 15:17
User: PatrickW
Program ID: apchkrcn

FOR CASH ACCOUNT: 999 10005 FOR: All CHECK # CHECK DATE TYPE VENDOR NAME UNCLEARED CLEARED BATCH CLEAR DATE 2023261 04/10/2025 PRINTED 100087 PALM SPRINGS INTERNATIONA 50,000.00 2023262 04/10/2025 PRINTED 100133 PALM SPRINGS MOTORS 988.00 2023263 04/10/2025 PRINTED 101738 PALM SPRINGS POWER BASEBA 3,500.00 2023264 04/10/2025 PRINTED 101728 PALM SPRINGS WATER SYSTEM 190.80 2023265 04/10/2025 PRINTED 101728 PALM SPRINGS WATER SYSTEM 572.40 2023266 04/10/2025 PRINTED 101728 PALM SPRINGS WATER SYSTEM 381.60 2023267 04/10/2025 PRINTED 101728 PALM SPRINGS WATER SYSTEM 190.80 2023268 04/10/2025 PRINTED 101728 PALM SPRINGS WATER SYSTEM 572.40 2023269 04/10/2025 PRINTED 101728 PALM SPRINGS WATER SYSTEM 381.60 2023270 04/10/2025 PRINTED 104341 ELIEL PALMA 100.00 2023271 04/10/2025 PRINTED 104363 PAX FITNESS REPAIR LLC 750.00 2023272 04/10/2025 PRINTED 104775 DAIYLEE A PEREZ 100.00 2023273 04/10/2025 PRINTED 016533 DEBORAH PIERREL 214.20 2023274 04/10/2025 PRINTED 105015 THE PITNEY BOWES BANK 5,031.25 2023275 04/10/2025 PRINTED 101434 PLACEWORKS 14,617.23 2023276 04/10/2025 PRINTED 103521 PLAZA TOWING INC 2,500.00 2023277 04/10/2025 PRINTED 101767 PROFORMA SOCAL 1,322.97 2023278 04/10/2025 PRINTED 100596 PROPER SOLUTIONS INC 33,833.36 2023279 04/10/2025 PRINTED 101629 THE RAMSAY GROUP 7,125.00 2023280 04/10/2025 PRINTED 105067 THE RANCH RECOVERY CENTER 5,629.82 2023281 04/10/2025 PRINTED 015020 DAVID READY 525.76 2023282 04/10/2025 PRINTED 016658 JOHN RIOS 1,064.05 2023283 04/10/2025 PRINTED 104774 JAVIER RIVERA 100.00 2023284 04/10/2025 PRINTED 100628 RIVERSIDE COUNTY CLERK 156.00 2023285 04/10/2025 PRINTED 100628 RIVERSIDE COUNTY CLERK 156.00 2023286 04/10/2025 PRINTED 105192 PUBLIC SERVICE LAW CORPOR 3,688.80 2023287 04/10/2025 PRINTED 103678 ROADRUNNER PRINTING AND S 3,102.70 2023288 04/10/2025 PRINTED 015021 ROSA ROMO 976.87 2023289 04/10/2025 PRINTED 016432 SHAUN ROSS 506.00 2023290 04/10/2025 PRINTED 104347 ROSARIO SALAZAR 100.00 2023291 04/10/2025 PRINTED 101542 SC COMMERCIAL 16,438.95 2023292 04/10/2025 PRINTED 100021 SOUTHERN CALIFORNIA EDISO 57.74 2023293 04/10/2025 PRINTED 100021 SOUTHERN CALIFORNIA EDISO 151.02 2023294 04/10/2025 PRINTED 100021 SOUTHERN CALIFORNIA EDISO 207.42 2023295 04/10/2025 PRINTED 100021 SOUTHERN CALIFORNIA EDISO 1,490.05 2023296 04/10/2025 PRINTED 100021 SOUTHERN CALIFORNIA EDISO 55.97 2023297 04/10/2025 PRINTED 100021 SOUTHERN CALIFORNIA EDISO 102.09 2023298 04/10/2025 PRINTED 100021 SOUTHERN CALIFORNIA EDISO 2,889.53 2023299 04/10/2025 PRINTED 100021 SOUTHERN CALIFORNIA EDISO 8,918.91 2023300 04/10/2025 PRINTED 100021 SOUTHERN CALIFORNIA EDISO 43.31 2023301 04/10/2025 PRINTED 100021 SOUTHERN CALIFORNIA EDISO 109.70 2023302 04/10/2025 PRINTED 100021 SOUTHERN CALIFORNIA EDISO 135.64 2023303 04/10/2025 PRINTED 100021 SOUTHERN CALIFORNIA EDISO 126.95 2023304 04/10/2025 PRINTED 100021 SOUTHERN CALIFORNIA EDISO 71,352.29 2023305 04/10/2025 PRINTED 100021 SOUTHERN CALIFORNIA EDISO 1,414.70 2023306 04/10/2025 PRINTED 100021 SOUTHERN CALIFORNIA EDISO 27,063.56 2023307 04/10/2025 PRINTED 100021 SOUTHERN CALIFORNIA EDISO 206.29 2023308 04/10/2025 PRINTED 100021 SOUTHERN CALIFORNIA EDISO 99.81 2023309 04/10/2025 PRINTED 100021 SOUTHERN CALIFORNIA EDISO 47.71 2023310 04/10/2025 PRINTED 100021 SOUTHERN CALIFORNIA EDISO 14,411.85 2023311 04/10/2025 PRINTED 100021 SOUTHERN CALIFORNIA EDISO 52.43 2023312 04/10/2025 PRINTED 100021 SOUTHERN CALIFORNIA EDISO 719.81 Item 1C - Page 7
.. -: ,,,. . • ••• ~. mun1s· ~ a tyler erp solution
City of Palm Springs, CA

AP CHECK RECONCILIATION REGISTER
Report generated: 04/10/2025 15:17
User: PatrickW
Program ID: apchkrcn

FOR CASH ACCOUNT: 999 10005 FOR: All CHECK # CHECK DATE TYPE VENDOR NAME UNCLEARED CLEARED BATCH CLEAR DATE 2023313 04/10/2025 PRINTED 100021 SOUTHERN CALIFORNIA EDISO 7,900.41 2023314 04/10/2025 PRINTED 100021 SOUTHERN CALIFORNIA EDISO 5,146.32 2023315 04/10/2025 PRINTED 100021 SOUTHERN CALIFORNIA EDISO 30.08 2023316 04/10/2025 PRINTED 100021 SOUTHERN CALIFORNIA EDISO 38.44 2023317 04/10/2025 PRINTED 100021 SOUTHERN CALIFORNIA EDISO 12,912.92 2023318 04/10/2025 PRINTED 100021 SOUTHERN CALIFORNIA EDISO 23.87 2023319 04/10/2025 PRINTED 100021 SOUTHERN CALIFORNIA EDISO 205.07 2023320 04/10/2025 PRINTED 100021 SOUTHERN CALIFORNIA EDISO 136.08 2023321 04/10/2025 PRINTED 100021 SOUTHERN CALIFORNIA EDISO 1,567.21 2023322 04/10/2025 PRINTED 100021 SOUTHERN CALIFORNIA EDISO 306.37 2023323 04/10/2025 PRINTED 100021 SOUTHERN CALIFORNIA EDISO 453.07 2023324 04/10/2025 PRINTED 104754 SDI PRESENCE LLC 2,692.50 2023325 04/10/2025 PRINTED 104318 SELECT ELECTRIC INC 154,652.45 2023326 04/10/2025 PRINTED 016542 PATRICIA SHAKARJIAN 131.52 2023327 04/10/2025 PRINTED 105209 ONESOURCE WIRELESS SOLUTI 2,566.28 2023328 04/10/2025 PRINTED 105221 JUDY MARIE SHERICK 8,169.00 2023329 04/10/2025 PRINTED 100435 THE SHREDDERS 181.00 2023330 04/10/2025 PRINTED 016600 JANICE SIMPSON 389.81 2023331 04/10/2025 PRINTED 104565 WANG DISCOVERY 5,450.00 2023332 04/10/2025 PRINTED 100022 SOUTHERN CALIFORNIA GAS C 299.60 2023333 04/10/2025 PRINTED 100022 SOUTHERN CALIFORNIA GAS C 204.22 2023334 04/10/2025 PRINTED 100022 SOUTHERN CALIFORNIA GAS C 1,164.67 2023335 04/10/2025 PRINTED 100022 SOUTHERN CALIFORNIA GAS C 21,031.74 2023336 04/10/2025 PRINTED 100022 SOUTHERN CALIFORNIA GAS C 1,015.53 2023337 04/10/2025 PRINTED 100334 SOUTHERN CALIFORNIA ERGON 2,349.16 2023338 04/10/2025 PRINTED 100577 SPARKLETTS - DS SERVICES 893.64 2023339 04/10/2025 PRINTED 104474 SQUARE SIGNS LLC 41,884.02 2023340 04/10/2025 PRINTED 103901 STEVE P RADOS INC 104,683.10 2023341 04/10/2025 PRINTED 015207 KYLE STJERNE 1,000.00 2023342 04/10/2025 PRINTED 102619 STUDIO ARD ARCHITECTS INC 2,095.00 2023343 04/10/2025 PRINTED 104345 KEVIN GERARD SULLIVAN 100.00 2023344 04/10/2025 PRINTED 104938 SUNBELT RENTALS INC 5,110.14 2023345 04/10/2025 PRINTED 100340 SUPERIOR PAVEMENT MARKING 16,989.28 2023346 04/10/2025 PRINTED 105057 ALLEGIS GROUP HOLDINGS IN 2,475.00 2023347 04/10/2025 PRINTED 100900 TERRA NOVA PLANNING AND R 22,575.83 2023348 04/10/2025 PRINTED 104602 TETRA TECH INC 9,154.00 2023349 04/10/2025 PRINTED 103881 THERMAX INC 9,992.00 2023350 04/10/2025 PRINTED 104184 TK ELEVATOR CORPORATION 989.60 2023351 04/10/2025 PRINTED 100031 TOPS N BARRICADES INC 40,555.83 2023352 04/10/2025 PRINTED 104308 WS CHIEF CORNERSTONE INC 3,350.00 2023353 04/10/2025 PRINTED 102712 TSG ENTERPRISES, INC. 8,352.00 2023354 04/10/2025 PRINTED 100386 U S CUSTOMS SERVICE 353.38 2023355 04/10/2025 PRINTED 100396 ULINE 15,295.74 2023356 04/10/2025 PRINTED 104834 UNIFIRST CORPORATION 410.77 2023357 04/10/2025 PRINTED 100114 UNITED RENTALS NA INC 2,213.41 2023358 04/10/2025 PRINTED 101730 UNITED TRANSMISSION EXCHA 246.86 2023359 04/10/2025 PRINTED 104368 UNIVERSAL GREEN LLC 80,159.00 2023360 04/10/2025 PRINTED 100200 VALLEY LOCK AND SAFE 17,554.46 2023361 04/10/2025 PRINTED 015945 JUAN VASQUEZ 420.00 2023362 04/10/2025 PRINTED 100129 VCA ANIMAL HOSPITALS INC 771.28 2023363 04/10/2025 PRINTED 105194 VEDAS DEVELOPMENT CORP 6,780.00 2023364 04/10/2025 PRINTED 100267 VEOLIA WATER NORTH AMERIC 1,021,455.30 Item 1C - Page 8
.. -: ,,,. . • ••• ~. mun1s· ~ a tyler erp solution
City of Palm Springs, CA

AP CHECK RECONCILIATION REGISTER
Report generated: 04/10/2025 15:17
User: PatrickW
Program ID: apchkrcn

FOR CASH ACCOUNT: 999 10005 FOR: All CHECK # CHECK DATE TYPE VENDOR NAME UNCLEARED CLEARED BATCH CLEAR DATE 2023365 04/10/2025 PRINTED 104034 VERDE FACILITIES SERVICES 2,286.51 2023366 04/10/2025 PRINTED 100621 VERIZON BUSINESS 256.62 2023367 04/10/2025 PRINTED 100144 VERIZON WIRELESS 94.00 2023368 04/10/2025 PRINTED 100144 VERIZON WIRELESS 4,209.74 2023369 04/10/2025 PRINTED 100144 VERIZON WIRELESS 8,770.29 2023370 04/10/2025 PRINTED 100050 VISION SERVICE PLAN 6,897.88 2023371 04/10/2025 PRINTED 101220 WATERLINE TECHNOLOGIES IN 4,319.75 2023372 04/10/2025 PRINTED 100156 WAXIE SANITARY SUPPLY 550.31 2023373 04/10/2025 PRINTED 100222 WEST COAST ARBORISTS INC 2,592.00 2023374 04/10/2025 PRINTED 103973 WEX HEALTH INC 2,176.65 2023375 04/10/2025 PRINTED 100097 WHITEWATER ROCK & SUPPLY 1,892.04 2023376 04/10/2025 PRINTED 100299 WILLDAN FINANCIAL SERVICE 7,331.00 2023377 04/10/2025 PRINTED 100223 WILLIAMS SCOTSMAN INC 453.60 2023378 04/10/2025 PRINTED 104635 WOODCLIFF CORPORATION 1,709,561.44 2023379 04/10/2025 PRINTED 105232 IVAN YOUSSEFIAN 5,700.00 2023380 04/10/2025 PRINTED 105228 HUNTER ZHANG 100.00 276 CHECKS CASH ACCOUNT TOTAL 7,310,464.54 .00 Item 1C - Page 9
.. -: ,,,. . • ••• ~. mun1s· ~ a tyler erp solution
City of Palm Springs, CA

AP CHECK RECONCILIATION REGISTER
Report generated: 04/10/2025 15:17
User: PatrickW
Program ID: apchkrcn

UNCLEARED CLEARED
276 CHECKS FINAL TOTAL 7,310,464.54 .00 ** END OF REPORT - Generated by Patrick Wynhoff **
Item 1C - Page 10
.. -: ,,,. . • ••• ~. mun1s· ~ a tyler erp solution

CITY COUNCIL STAFF REPORT
05/14/2025
SUBJECT:

TREASURER’S INVESTMENT REPORT AS OF MARCH 31, 2025
RECOMMENDATION:

Receive and File.

Attachments
Item 1D

CITY COUNCIL STAFF REPORT

DATE: MAY 14, 2025 CONSENT CALENDAR

SUBJECT: TREASURER’S INVESTMENT REPORT AS OF MARCH 31, 2025

FROM: Scott C. Stiles, City Manager

BY: Department of Finance and Treasury

SUMMARY:

Attached is the Treasurer's Investment Report (Attachment A) as of March 31, 2025.

RECOMMENDATION:

Receive and File.

STAFF ANALYSIS:

The City has compiled a Treasurer’s report working with Chandler Asset Management, the City’s Asset Management Firm, in ensuring the City complies with section 17.0 of the Council approved Investment Policy and California Government Code (Code) section 53607 and 53646.

The Code section 53607 requires a monthly report of transactions to be submitted to the City Council. Code section 53646 states if the City chooses to issue a Quarterly Report, it must be submitted within 45 days. See pages 43 – 45 for the transactions by month for the quarter.

The City’s total portfolio value as of 03/31/25 is $461,983,514 vs. $434,318,228 on 12/31/2024. (Attachment A, page 32).

The City’s average market yield is 4.11% for the total portfolio (Attachment A, page 32).

The average maturity of the City’s investments is 1.87 years (Attachment A, page 32).

This Treasurer’s Report is in compliance with section 17.0 of the Investment Policy. The City has sufficient availability of funds to meet the next six months of obligations. The cash balance in the City’s Bank of America account as of March 31, 2025 was $23,606,974 which is not included in the attached Treasurer’s Report.

Item 1D - Page 1
City Council Staff Report
May 14, 2025-- Page 2
Treasurer’s Investment Report as of March 31, 2025

ALIGNMENT WITH STRATEGIC PLANNING:

This item aligns with the City Council Strategic Plan Foundation of Financial and Organizational Well-Being.

FISCAL IMPACT:

None.

REVIEWED BY:

Department Director: Kristopher J. Mooney
City Manager: Scott Stiles

ATTACHMENTS:

A. Treasurer’s Investment Report

Item 1D - Page 2

ATTACHMENT A

Item 1D - Page 3

INVESTMENT REPORT
City of Palm Springs | As of March 31, 2025
CHANDLER ASSET MANAGEMENT | chandlerasset.com
Chandler Team:

For questions about your account, please call (800) 317-4747, or contact [email protected]
Information contained herein is confidential. We urge you to compare this statement to the one you receive from your qualified custodian. Please see Important Disclosures at the end of the statement.

Item 1D - Page 4
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TABLE OF CONTENTS

ECONOMIC UPDATE

ACCOUNT PROFILE

CONSOLIDATED INFORMATION

PORTFOLIO HOLDINGS

TRANSACTIONS
1 Item 1D - Page 5
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ECONOMIC UPDATE
2 Item 1D - Page 6
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▪
▪
▪
Recent economic data suggest slower growth in 2025 and greater market uncertainty as the effects of fiscal policy unfold. Inflationary trends have subsided, but some components remain sticky, and core levels remain above the Fed’s target. The labor market reflects improved balance between supply and demand for workers. While job creation has been robust, continuing jobless claims remain elevated.

Given the economic outlook, we expect gradual normalization of monetary policy and a steepening yield curve.

As broadly anticipated, the Federal Open Market Committee (FOMC) left the Federal Funds Rate unchanged at the range of 4.25 - 4.50% at the March meeting. Fed Chair Powell emphasized increased uncertainty around the economic outlook and the need for “greater clarity” before making changes to interest rate policy. He also acknowledged possible transitory inflationary impacts from tariffs. The summary of economic projections (SEP) indicated lower GDP growth, higher inflation, and higher unemployment estimates than December projections, along with roughly two 25-basis point rate cuts this year. The FOMC also announced a slowdown in the pace of balance sheet reduction.

US Treasury yields declined, and the curve steepened in March. The 2-year Treasury yield declined 10 basis points to 3.89%, the 5-year Treasury fell 7 basis points to 3.95%, and the 10-year Treasury yield was unchanged 4.21%. The spread between the 2-year and 10-year Treasury yield points on the curve widened to +32 basis points at March month-end versus +22 basis points at February month-end. The spread between the 2-year Treasury and 10-year Treasury yield one year ago was -42 basis points. The spread between the 3-month and10- year Treasury yield points on the curve was -9 basis points in March, unchanged from February.

ECONOMIC UPDATE
3 Item 1D - Page 7 ,-._,.. CHANDLER
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-400
-200
0 200
400
600
800
1,000MOM Change In Thousands (000's)
Nonfarm Payroll (000's)
Non-farm Payroll (000's)
3-month average (000's)

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%
Unemployment Rate
Underemployment Rate (U6)
Unemployment Rate (U3)
Rate (%)
Source: US Department of Labor Source: US Department of Labor

EMPLOYMENT
4 Item 1D - Page 8
- -·~ -----------------------
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I \
I \
I \
I=
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-t,.-- ~----------------------
....... ' --~-~~--......... .._ _____________ _
The U.S. eoo 111 omy added 228, 0 00 job s i111 March , exceed i111g consensus expectat io 111 s, a11d t he last two mont hs we re revised dow11 by 48,000. Gains we re led by hea lt hcar e, reta il, so cia l ass ista111oe, a111 d tra nsportation. The t hree- mo111t h moving average and six-mo111th movi11g average payro lls tota led 152,0 00 and 181,0 00 res pectively. The u11employm e11t rat e rose to 4.2% i11 Marc h, a11d th e labor part icipat io11 rate edged up to 62.5%, re mai11 ing below the p,re-pa11de mic level of 63.3%. The U-'6 u11dere mpfoym e11t rat e, whi ch i11cludes t hose wh o a re· marg ina lly attac hed to t he la bor forc e· a11d e mployed part t ime· fo r eoo11omic reas on s edged dow n to 7.9% i11 Marc h from

8.0% i11 Fe bruary. Average , our ly ea rnings t icked down to a11 increase of 3.8% yea r-over-yea r i11 Marc h. 0 2,000
4,000
6,000
8,000
10,000
12,000
14,000
Job Openings
Recession
Historical Average
In Thousands (000's)
The Labor Department’s Job Openings and Labor Turnover Survey (JOLTS) fell to 7.57 million new job openings in February from 7.76 million new job openings in January. Job openings indicate a ratio of 1.1 jobs for each unemployed individual, representing a relatively balanced labor market.

Source: US Department of Labor

JOB OPENINGS & LABOR TURNOVER SURVEY
5 Item 1D - Page 9
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0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%
Consumer Price Index (CPI)
CPI YOY % Change
Core CPI YOY % Change
YOY (%) Change

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%
Personal Consumption Expenditures (PCE)
PCE Price Deflator YOY % Change
PCE Core Deflator YOY % Change
Fed Target
YOY (%) Change
In February, both the Consumer Price Index (CPI) and Core CPI, which excludes volatile food and energy components, posted more moderate increases than last month and came in lower than consensus expectations. The headline CPI rose 0.2% month-over-month and

2.8% year-over-year, while the Core CPI rose 0.2% month-over-month and 3.1% year-over-year. The Personal Consumption Expenditures (PCE) price index increased by 0.3% from the previous month and 2.5% year-over-yearin February. The Core PCE deflator, which excludes food and energy and is the Fed’s preferred gauge, accelerated its increase to 0.4% month-over-month and 2.8% from 2.6% year-over- year.Inflation remains above the Fed’s 2% target.

Source: US Department of Labor Source: US Department of Commerce

INFLATION
6 Item 1D - Page 10 ,-._,.. CHANDLER
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-30.0%
-20.0%
-10.0%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%
Retail Sales YOY % Change
YOY (%) Change
The Advance Retail Sales report for February fell short of expectations, increasing 0.2% month-over-month following a 1.2% decline in January. Declines were broad-based across categories. However, control group sales, which feeds into gross domestic product and excludes food services, auto dealers, building materials stores, and gasoline stations, increased 1% in February. On a year-over-year basis, Retail Sales grew 3.1% in February versus 3.9% in January. The Conference Board’s Consumer Confidence Index tumbled 7.2 points in March to 92.9, a notable decrease from February. Consumers' assessment of the present situation fell, with business conditions viewed as "good" by only 17.7% and jobs considered "plentiful" by 33.6%. Their expectations for income, business, and labor market conditions dropped, with pessimism about future employment prospects falling to a 12-year low. While the consumer has been resilient, rising inflation expectations, concerns about trade policies and tariffs, and general economic and policy uncertainty could pose potential risks to future spending.
0 20
40 60
80 100
120
140
160
Index Level
Consumer Confidence
Recession
Source: US Department of Commerce Source: The Conference Board All time high is 144.70 (1/31/00); All time low is 25.30 (2/28/09)

CONSUMER
7 Item 1D - Page 11 ,-._,.. CHANDLER
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-25.0%
-20.0%
-15.0%
-10.0%
-5.0%

0.0%

5.0%

10.0%

15.0%
Leading Economic Indicators (LEI)
Recession
YOY (%) Change
-1.00
-0.75
-0.50
-0.25

0.00 0.25

0.50 0.75

1.00 Chicago Fed National Activity Index (CFNAI)
Recession
3 Month Average
The Conference Board’s Leading Economic Index (LEI) fell by 0.3% in February, following a 0.2% decline in January. The LEI decreased year- over-year by 3.1%. The monthly decline was primarily driven by consumer assessments of future business conditions becoming more pessimistic. The Chicago Fed National Activity Index (CFNAI) increased to +0.18 in February from a revised -0.08 in January, reflecting stronger readings across production-related indicators and sales, orders, and inventories. The three-month moving average rose to +0.15 in February from +0.07 in January, indicating expectations of continued above-trend economic growth.

Source: The Conference Board Source: Federal Reserve Bank of Chicago

LEADING INDICATORS OF ECONOMIC ACTIVITY
8 Item 1D - Page 12

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0 200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
2,200
2,400In Thousands of Units
Annualized Housing Starts
Multi Family Housing Starts
Single Family Housing Starts
Housing starts soared 11.2% to 1.5 million units in February as builders rebounded from adverse weather conditions in January. Total starts are down 2.9% compared to February 2024. Single family homes starts rose 11.4%, and multi-family starts increased 10.7%. The Freddie Mac 30-year fixed rate mortgage averaged approximately 6.8% in February. According to the Case-Shiller 20-City Home Price Index, housing prices rose 4.7% year-over-year in January, compared to 4.5% in December. While inventory constraints remain a challenge, the slight improvement in annual gains suggests gradual stabilization in the market. However, higher mortgage rates continue to weigh on affordability, limiting buyer demand and market activity.

Source: US Department of Commerce Source: S&P
-20.0%
-16.0%
-12.0%
-8.0%
-4.0%

0.0%

4.0%

8.0%

12.0%

16.0%

20.0%

24.0%
S&P/Case-Shiller 20 City Composite Home Price Index
Recession
YOY (%) Change

HOUSING
9 Item 1D - Page 13 ,-._,.. CHANDLER
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40 45
50 55
60 65
70 Institute of Supply Management (ISM) Surveys
ISM Manufacturing ISM Services

EXPANDING

CONTRACTING
The Institute for Supply Management (ISM) Manufacturing index dipped back into contractionat 49.0 in March from 50.3 in February. The survey reflected a decline in business activity, upward price pressures, and notably weaker employment. The ISM Services index declined to 50.8 in March from 53.5 in February as new orders, employment, and supplier deliveries all weakened. A reading over 50 indicates expansion, while a reading under 50 indicates contraction.

Source: Institute for Supply Management

SURVEY BASED MEASURES
10 Item 1D - Page 14
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Components of GDP 3/24 6/24 9/24 12/24

1.3% 1.9% 2.5% 2.7%

0.6% 1.5% 0.2% -1.0%
-0.6% -0.9% -0.4% 0.3%

0.0% 0.3% 0.6% 0.3%

0.3% 0.3% 0.3% 0.3%

1.6% 3.0% 3.1% 2.4%
Personal Consumption Expenditures
Gross Private Domestic Investment
Net Exports and Imports
Federal Government Expenditures
Total
State and Local (Consumption and Gross
Investment)
-40.0%
-30.0%
-20.0%
-10.0%

0.0%

10.0%

20.0%

30.0%

40.0%
Gross Domestic Product (GDP)
GDP QOQ % Change
GDP YOY % Change
Source: US Department of Commerce Source: US Department of Commerce According to the third estimate, fourth quarter GDP increased at an annualized rate of 2.4 percent, revised up 0.1 percentage point from the second estimate. Growth continues to be powered by consumer spending and government spending, partly offset by a decrease in investment. Imports also decreased. Real GDP increased 2.8 percent in 2024. The consensus projection calls for 1.2% growth for the first quarter and 2.0% for the full year 2025.

GROSS DOMESTIC PRODUCT (GDP)
11 Item 1D - Page 15 ,-._,.. CHANDLER
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---:__~_~f
Source: Federal Reserve Source: Bloomberg
0 1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
9,000,000
10,000,000
Federal Reserve Balance Sheet Assets
Recession
In $ millions
As broadly anticipated, the Federal Open Market Committee (FOMC) left the Federal Funds Rate unchanged at the range of 4.25 - 4.50% at the March meeting. Fed Chair Powell emphasized increased uncertainty around the economic outlook and the need for“greater clarity” before making changes to interest rate policy. He also acknowledged possible transitory inflationary impacts from tariffs. The summary of economic projections (SEP) indicated lower GDP growth, higher inflation, and higher unemployment estimates than December projections, along with roughly two 25-basis point rate cuts this year. The FOMC also announced a slowdown in the pace of balance sheet reduction. The monthly redemption cap on Treasuries will be reduced from $25 billion to $5 billion, while the cap on agencies and mortgage-backed securities will be maintained at $35 billion. Since the Fed began its Quantitative Tightening campaign in June 2022, securities holdings have declined by approximately $2.2 trillion to approximately $6.8 trillion.

FEDERAL RESERVE
12 Item 1D - Page 16

~
"C
ai
>

6.00 %

5.00 %

4.00 %

3.00 %

2.00 %

1.00 %

0.00 %
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Effective Federal Funds Rate
Source: Bloomberg Source: Bloomberg

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%
US Treasury Note Yields
2-Year
5-Year
10-Year
Yield (%)

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%
US Treasury Yield Curve
Mar-25
Dec-24
Mar-24
Yield (%)
At the end of March, the 2-year Treasury yield was 74 basis points lower, and the 10-Year Treasury yield was 6 basis points higher, year- over-year. The spread between the 2-year and 10-year Treasury yield points on the curve widened to +32 basis points at March month- end versus +22 basis points at February month-end. The recent yield curve inversion which began in July 2022 was historically long. The average historical spread (since 2005) is about +99 basis points. The spread between the 3-month and 10-year Treasury yield points on the curve was -9 basis points in in March, unchanged from February.

BOND YIELDS
13 Item 1D - Page 17
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----------· ---------,,:---- ····················· ......... ----- ~ ~ -- ~ ----'~

PERIODIC TABLE OF ASSET CLASS RETURNS
Index returns as of 03/31/2025. Past performance is not indicative of future results. Index returns assume reinvestment of all distributions and do not reflect fees or expenses. It is not possible to invest directly in an index. This information is not intended to constitute an offer, solicitation, recommendation, or advice regarding securities or investment strategy. Please see attached Asset Class Disclosure. 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 YTD 2025 US Real Estate

2.5%
US Small Cap
Stocks

20.4%
Emerging Market
Stocks

37.3%
International
Bonds

3.2%
US Large Cap
Stocks

31.5%
US Mid Cap
Stocks

19.8%
US Real Estate

43.1%
Diversified
Commodities

26.0%
US Large Cap
Stocks

26.3%
US Large Cap
Stocks

25.0%
International
Stocks

6.9%
US Large Cap
Stocks

1.4%
US High Yield
Bonds

17.5%
International
Stocks

25.0%
US Core Bonds

0.0%
US Mid Cap
Stocks

30.6%
US Small Cap
Stocks

19.2%
Diversified
Commodities

40.4%
US High Yield
Bonds
-11.2%
US Small Cap
Stocks

19.1%
US Mid Cap
Stocks

17.2%
Diversified
Commodities

4.9%
International
Bonds

1.3%
US Mid Cap
Stocks

12.6%
US Large Cap
Stocks

21.8%
US High Yield
Bonds
-2.3%
US Small Cap
Stocks

25.9%
US Large Cap
Stocks

18.4%
US Large Cap
Stocks

28.7%
International
Bonds
-12.7%
International
Stocks

18.2%
US Small Cap
Stocks

11.0%
International
Real Estate

3.3%
US Core Bonds

0.6%
US Large Cap
Stocks

12.0%
US Mid Cap
Stocks

20.3%
US Large Cap
Stocks
-4.4%
US Real Estate

25.8%
Emerging Market
Stocks

18.3%
US Mid Cap
Stocks

24.0%
US Core Bonds
-13.3%
US Mid Cap
Stocks

14.5%
Diversified
Commodities

9.2%
Emerging Market
Stocks

2.9%
US Mid Cap
Stocks
-0.6%
Diversified
Commodities

11.4%
International
Real Estate

20.0%
US Real Estate
-4.6%
International
Stocks

22.0%
International
Stocks

7.8%
US Small Cap
Stocks

21.1%
International
Stocks
-14.5%
US Real Estate

13.7%
US Real Estate

8.8%
US Core Bonds

2.8%
International
Stocks
-0.8%
Emerging Market
Stocks

11.2%
US Small Cap
Stocks

15.2%
International
Real Estate
-6.4%
International
Real Estate

21.0%
US Core Bonds

7.6%
International
Stocks

11.3%
US Mid Cap
Stocks
-16.9%
US High Yield
Bonds

13.5%
US High Yield
Bonds

8.2%
US Real Estate

1.1%
International
Real Estate
-3.8%
US Real Estate

8.6%
US High Yield
Bonds

7.5%
US Mid Cap
Stocks
-8.1%
Emerging Market
Stocks

18.4%
US High Yield
Bonds

6.2%
International
Real Estate

8.1%
US Small Cap
Stocks
-17.8%
Emerging Market
Stocks

9.8%
Emerging Market
Stocks

7.5%
US High Yield
Bonds

0.9%
US Small Cap
Stocks
-4.1%
International
Bonds

4.9%
Diversified
Commodities

5.8%
US Small Cap
Stocks
-11.0%
Diversified
Commodities

17.6%
International
Bonds

4.7%
US High Yield
Bonds

5.4%
US Large Cap
Stocks
-18.1%
International
Bonds

8.7%
International
Stocks

3.8%
International
Bonds
-0.1%
US High Yield
Bonds
-4.6%
US Core Bonds

2.6%
US Real Estate

5.1%
International
Stocks
-13.8%
US High Yield
Bonds

14.4%
International
Real Estate
-7.1%
US Core Bonds
-1.6%
Emerging Market
Stocks
-20.1%
International
Real Estate

6.3%
International
Bonds

3.8%
US Large Cap
Stocks
-4.3%
Emerging Market
Stocks
-14.9%
International
Real Estate

1.3%
US Core Bonds

3.6%
Diversified
Commodities
-13.8%
US Core Bonds

9.0%
US Real Estate
-7.6%
International
Bonds
-2.1%
International
Real Estate
-24.3%
US Core Bonds

5.4%
US Core Bonds

1.3%
US Mid Cap
Stocks
-4.3%
Diversified
Commodities
-32.9%
International
Stocks

1.0%
International
Bonds

2.6%
Emerging Market
Stocks
-14.6%
International
Bonds

8.1%
Diversified
Commodities
-23.7%
Emerging Market
Stocks
-2.5%
US Real Estate
-24.5%
Diversified
Commodities
-4.3%
International
Real Estate
-8.4%
US Small Cap
Stocks
-8.4%
14 Item 1D - Page 18
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ACCOUNT PROFILE
15 Item 1D - Page 19
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OBJECTIVES
Investment Objectives
The investment objectives of the City of Palm Springs are first, to provide safety of principal to ensure the preservation of capital in the overall portfolio; second, to provide adequate liquidity to meet all requirements which might be reasonably anticipated; and third, to earn a commensurate rate of return.

Chandler Asset Management Performance Objective
The performance objective for the portfolio is to achieve a rate of return over a market cycle that equals or exceeds the return on a market index of similar duration and sector allocation.

Strategy
In order to achieve these objectives, the portfolio invests in high quality fixed income securities consistent with the investment policy and California Government Code. 16 Item 1D - Page 20
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STATEMENT OF COMPLIANCE
City of Palm Springs | Account #10805 | As of March 31, 2025 Rules Name Limit Actual Compliance
Status Notes

AGENCY MORTGAGE SECURITIES (CMOS)
Max % (MV) 20.0 2.3 Compliant
Max % Issuer (MV) 5.0 2.3 Compliant
Max Maturity (Years) 5.0 3.5 Compliant

ASSET-BACKED SECURITIES (ABS)
Max % (MV) 20.0 0.0 Compliant
Max % Issuer (MV) 5.0 0.0 Compliant
Max Maturity (Years) 5 0.0 Compliant
Min Rating (AA- by 1) 0.0 0.0 Compliant

BANKERS' ACCEPTANCES
Max % (MV) 20.0 0.0 Compliant
Max % Issuer (MV) 5.0 0.0 Compliant
Max Maturity (Days) 180 0.0 Compliant
Min Rating (A-1 by 3) 0.0 0.0 Compliant

CERTIFICATE OF DEPOSIT PLACEMENT SERVICE
(CDARS)
Max % (MV) 30.0 0.0 Compliant
Max Maturity (Years) 5.0 0.0 Compliant

COLLATERALIZED TIME DEPOSITS (NON-

NEGOTIABLE CD/TD)
Max % (MV) 20.0 0.0 Compliant
Max Issuer Amount (MV) 500,000.0 0.0 Compliant
Max Maturity (Years) 5.0 0.0 Compliant
Min Rating (A-1 by 2; A- by 2) 0.0 0.0 Compliant

COMMERCIAL PAPER
Max % (MV) 15.0 0.0 Compliant
Max % Issuer (MV) 5.0 0.0 Compliant
Max Maturity (Days) 270 0.0 Compliant
Min Rating (A-1 by 1 or A- by 1) 0.0 0.0 Compliant

CORPORATE MEDIUM TERM NOTES
17 Item 1D - Page 21
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STATEMENT OF COMPLIANCE
City of Palm Springs | Account #10805 | As of March 31, 2025 Rules Name Limit Actual Compliance
Status Notes
Max % (MV) 30.0 20.1 Compliant
Max % Issuer (MV) 5.0 1.5 Compliant
Max Maturity (Years) 5 4 Compliant
Min Rating (A- by 1) 0.0 0.0 Compliant

FDIC INSURED TIME DEPOSITS (NON-NEGOTIABLE
CD/TD)
Max % (MV) 20.0 0.0 Compliant
Max Maturity (Years) 5 0.0 Compliant

FEDERAL AGENCIES
Max % (MV) 60.0 27.3 Compliant
Max Callables (MV) 20.0 2.8 Compliant
Max Maturity (Years) 5 4 Compliant

LOCAL AGENCY INVESTMENT FUND (LAIF)
Max Concentration (MV) 75.0 0.0 Compliant

LOCAL GOVERNMENT INVESTMENT POOL (LGIP)
Max % (MV) 20.0 0.0 Compliant

MONEY MARKET MUTUAL FUNDS
Max % (MV) 20.0 7.7 Compliant
Max % Issuer (MV) 10.0 7.7 Compliant
Min Rating (AAA by 2) 0.0 0.0 Compliant

MORTGAGE -BACKED SECURITIES (NON-AGENCY)
Max % (MV) 20.0 0.0 Compliant
Max % Issuer (MV) 5.0 0.0 Compliant
Max Maturity (Years) 5.0 0.0 Compliant
Min Rating (AA- by 1) 0.0 0.0 Compliant

MUNICIPAL SECURITIES (CA, LOCAL AGENCY)
Max % (MV) 15.0 0.0 Compliant
Max % Issuer (MV) 5.0 0.0 Compliant
Max Maturity (Years) 5 0.0 Compliant
Min Rating (A- by 1) 0.0 0.0 Compliant
18 Item 1D - Page 22
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STATEMENT OF COMPLIANCE
City of Palm Springs | Account #10805 | As of March 31, 2025 Rules Name Limit Actual Compliance
Status Notes

MUTUAL FUNDS
Max % (MV) 20.0 0.0 Compliant
Max % Issuer (MV) 10.0 0.0 Compliant
Min Rating (AAA by 2) 0.0 0.0 Compliant

NEGOTIABLE CERTIFICATES OF DEPOSIT (NCD)
Max % (MV) 30.0 0.0 Compliant
Max % Issuer (MV) 5.0 0.0 Compliant
Max Maturity (Years) 5 0.0 Compliant
Min Rating (A- by 2 or A-1 by 2 if > FDIC Limit) 0.0 0.0 Compliant

SRI PROHIBITED INVESTMENTS
Prohibited Investments - Firearms 0.0 0.0 Compliant

SUPRANATIONAL OBLIGATIONS
Max % (MV) 30.0 1.9 Compliant
Max % Issuer (MV) 10.0 1.2 Compliant
Max Maturity (Years) 5 1 Compliant
Min Rating (AA- by 1) 0.0 0.0 Compliant
U.S. TREASURIES
Max % (MV) 100.0 40.7 Compliant
Max Maturity (Years) 5 4 Compliant
19 Item 1D - Page 23
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PORTFOLIO CHARACTERISTICS
City of Palm Springs | Account #10805 | As of March 31, 2025 Benchmark* 3/31/2025
Portfolio
12/31/2024
Portfolio
Average Maturity (yrs) 2.65 2.15 2.24
Average Modified Duration 2.48 1.97 2.04
Average Purchase Yield 3.87% 3.82%
Average Market Yield 3.93% 4.08% 4.39%
Average Quality** AA+ AA+ AA+
Total Market Value 401,944,710 422,467,339
*Benchmark: ICE BofA 1-5 Year Unsubordinated US Treasury & Agency Index **The credit quality is a weighted average calculation of the highest of S&P, Moody’s and Fitch. 20 Item 1D - Page 24
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SECTOR DISTRIBUTION
City of Palm Springs | Account #10805 | As of March 31, 2025 Sector as a Percentage of Market Value
Sector 03/31/2025 12/31/2024
US Treasury 40.68% 40.36%
Agency 27.29% 27.16%
Corporate 20.08% 18.92%
Money Mkt Fd 7.75% 9.60%
Agency CMBS 2.30% 2.16%
Supras 1.85% 1.75%
21 Item 1D - Page 25
50%
25%
0% US Treasury Agency Corporate
 03/31/2025
Money Mkt Fd Agency CMBS
 12/31/2024
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Supras

DURATION ALLOCATION
City of Palm Springs | Account #10805 | As of March 31, 2025 0-.25 .25-.5 .5-1 1-2 2-3 3-4 4-5 5-7 7+
03/31/2025 12.3% 5.5% 10.0% 23.1% 23.1% 24.8% 1.2% 0.0% 0.0% 22 Item 1D - Page 26
30%
25%
20%
15%
-
.5-1 1-2
ABS Agency  Agency CMBS cash  Corporate
2-3
 Money Mkt Fd Supras
,-._,.. CHANDLER
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-
3-4 4-5
 US Treasury

ISSUERS
City of Palm Springs | Account #10805 | As of March 31, 2025 Issuer Investment Type % Portfolio
Government of The United States US Treasury 40.68%
Farm Credit System Agency 13.58%
Federal Home Loan Banks Agency 12.92%
Allspring Group Holdings LLC Money Mkt Fd 7.75%
FHLMC Agency CMBS 2.30%
PACCAR Inc Corporate 1.51%
Amazon.com, Inc. Corporate 1.35%
Eli Lilly and Company Corporate 1.26%
Deere & Company Corporate 1.24%
International Finance Corporation Supras 1.23%
The Home Depot, Inc. Corporate 1.14%
Bank of America Corporation Corporate 1.02%
Apple Inc. Corporate 0.99%
Mastercard Incorporated Corporate 0.99%
Pfizer Inc. Corporate 0.98%
Merck & Co., Inc. Corporate 0.97%
Visa Inc. Corporate 0.96%
JPMorgan Chase & Co. Corporate 0.83%
FNMA Agency 0.79%
Target Corporation Corporate 0.78%
Caterpillar Inc. Corporate 0.76%
Northern Trust Corporation Corporate 0.75%
Microsoft Corporation Corporate 0.74%
U.S. Bancorp Corporate 0.69%
International Bank for Recon and Dev Supras 0.62%
The PNC Financial Services Group, In Corporate 0.62%
The Procter & Gamble Company Corporate 0.62%
The Charles Schwab Corporation Corporate 0.54%
BNY Mellon Corp Corporate 0.49%
Costco Wholesale Corporation Corporate 0.49%
23 Item 1D - Page 27
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ISSUERS
City of Palm Springs | Account #10805 | As of March 31, 2025 Issuer Investment Type % Portfolio
State Street Corporation Corporate 0.36%
Cash Cash 0.04%
Honda Auto Receivables Owner Trust ABS 0.01%
TOTAL 100.00%
24 Item 1D - Page 28
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QUALITY DISTRIBUTION
Rating 03/31/2025 12/31/2024
AAA 11.0% 12.6%
AA 74.1% 72.7%
A 14.9% 14.6%
NA 0.0% 0.0%
Rating 03/31/2025 12/31/2024
AAA 81.6% 82.7%
AA 6.1% 3.7%
A 12.2% 13.6%
Rating 03/31/2025 12/31/2024
AAA 2.3% 2.2%
AA 72.1% 71.4%
A 6.5% 6.2%
NA 19.0% 20.2%
City of Palm Springs | Account #10805 | As of March 31, 2025 S&P Rating Moody’s Rating Fitch Rating
25 Item 1D - Page 29

AAA AA A NA
 03/31/2025  12/31/2024
100%
 03/31/2025  12/31/2024
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 03/31/2025  12/31/2024
0-.25 .25-.5 .5-1 1-2 2-3 3-4 4-5 5-7 7+
Portfolio 12.3% 5.5% 10.0% 23.1% 23.1% 24.8% 1.2% 0.0% 0.0% ICE BofA 1-5 Year Unsubordinated US Treasury &
Agency Index 0.0% 0.0% 2.6% 35.4% 27.3% 22.5% 12.1% 0.0% 0.0%

DURATION DISTRIBUTION
City of Palm Springs | Account #10805 | As of March 31, 2025 Portfolio Compared to the Benchmark
26 Item 1D - Page 30
40%
30%
20%
10%
0% 0-.25 .25- .5 .5-1
 City of Palm Springs
1-2 2-3 3-4 4-5
 ICE BofA 1-5 Year Unsubordinated US Treasury & Agency Index ,-._,.. CHANDLER
~ , • • ASSET MANAGEMENT
5-7 7+

DURATION DISTRIBUTION
City of Palm Springs | Account #10805 | As of March 31, 2025 Date 0-.25 .25-.5 .5-1 1-2 2-3 3-4 4-5 5-7 7+
03/31/2025 12.3% 5.5% 10.0% 23.1% 23.1% 24.8% 1.2% 0.0% 0.0% 12/31/2024 13.8% 3.7% 7.5% 20.9% 25.2% 26.5% 2.3% 0.0% 0.0% 27 Item 1D - Page 31
30%
20%
10%
0% 0-.25 .25- .5 .5-1 1-2
 03/31/2025
2-3 3-4 4-5
 12/31/2024
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5-7 7+
3 Months 12 Months 2 Years 3 Years 5 Years 10 Years Since Inception

TOTAL RATE OF RETURN
City of Palm Springs 1.80% 5.56% 4.44% 3.07% 1.75%
Benchmark 2.00% 5.50% 3.96% 2.49% 0.90%
*Periods over 1 year are annualized.

Benchmark: ICE BofA 1-5 Year Unsubordinated US Treasury & Agency Index Total rate of return: A measure of a portfolio’s performance over time. It is the internal rate of return, which equates the beginning value of the portfolio with the ending market value; it includes interest earnings, realized and unrealized gains and losses in the portfolio.

INVESTMENT PERFORMANCE
City of Palm Springs | Account #10805 | As of March 31, 2025 Total Rate of Return : Inception | 04/01/2021
28 Item 1D - Page 32
6%
4%
2%
0% 3 Month s 12 Months 2 Years
 Total Return
3 Years 5 Years
 Benchmark
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10 Years Since Inception*

PORTFOLIO CHARACTERISTICS
City of Palm Springs Reporting | Account #10806 | As of March 31, 2025 3/31/2025
Portfolio
12/31/2024
Portfolio
Average Maturity (yrs) 0.00 0.00
Average Modified Duration 0.00 0.00
Average Purchase Yield 4.32% 4.43%
Average Market Yield 4.32% 4.43%
Average Quality** AAA AAA
Total Market Value 60,038,804 11,850,889
*Benchmark: NO BENCHMARK REQUIRED
**The credit quality is a weighted average calculation of the highest of S&P, Moody’s and Fitch. 29 Item 1D - Page 33
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SECTOR DISTRIBUTION
City of Palm Springs Reporting | Account #10806 | As of March 31, 2025 Sector as a Percentage of Market Value
Sector 03/31/2025 12/31/2024
LAIF 88.05% 40.04%
LGIP 11.77% 59.00%
Cash 0.18% 0.97%
30 Item 1D - Page 34
 03/31/2025  12/31/2024
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CONSOLIDATED INFORMATION
31 Item 1D - Page 35
1-,,a CHANDLER
" '-- ASSET MANAGEMENT

PORTFOLIO CHARACTERISTICS
City of Palm Springs Cons | Account #10807 | As of March 31, 2025 3/31/2025
Portfolio
12/31/2024
Portfolio
Average Maturity (yrs) 1.87 2.18
Average Modified Duration 1.71 1.99
Average Purchase Yield 3.92% 3.83%
Average Market Yield 4.11% 4.39%
Average Quality** AA+ AA+
Total Market Value 461,983,514 434,318,228
*Benchmark: NO BENCHMARK REQUIRED
**The credit quality is a weighted average calculation of the highest of S&P, Moody’s and Fitch. 32 Item 1D - Page 36
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SECTOR DISTRIBUTION
City of Palm Springs Cons | Account #10807 | As of March 31, 2025 Sector as a Percentage of Market Value
Sector 03/31/2025 12/31/2024
US Treasury 35.37% 39.25%
Agency 23.72% 26.41%
Corporate 17.45% 18.40%
LAIF 11.51% 1.10%
Money Mkt Fd 6.73% 9.33%
Agency CMBS 2.00% 2.10%
Supras 1.61% 1.70%
LGIP 1.54% 1.62%
Cash 0.05% 0.06%
33 Item 1D - Page 37
50%
25%
0% US Treasury Agency Corporate LAIF Money Mkt Fd Agency CMBS  03/31/2025  12/31/2024
Supras
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LGIP Cash

PORTFOLIO HOLDINGS
34 Item 1D - Page 38
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HOLDINGS REPORT
City of Palm Springs | Account #10805 | As of March 31, 2025 Cusip Security Description Par Value/
Units
Purchase
Date
Purchase
Yield
Cost Value
Book Value
Mkt
Price
Mkt
YTM
Market Value
Accrued Int.
% of Port.

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
ABS
43815GAC3 HAROT 2021-4 A3 0.88
01/21/2026 50,407.82 02/03/2022

1.48%
49,840.73
50,302.21

99.66 4.86%
50,236.54

12.32 0.01%
(65.67)
AAA/NA
AAA

0.81 0.08
Total ABS 50,407.82 1.48%
49,840.73
50,302.21

99.66 4.86%
50,236.54

12.32 0.01%
(65.67)

0.81 0.08
AGENCY
3133ELVQ4 FEDERAL FARM CREDIT BANKS
FUNDING CORP 0.95 04/01/2025 2,600,000.00 08/23/2021

0.57%
2,635,074.00
2,600,000.00
100.00

0.95%
2,600,000.00
12,350.00

0.65%

0.00 AAA/AA
AA

0.00 0.00
3135G04Z3 FEDERAL NATIONAL MORTGAGE
ASSOCIATION 0.5 06/17/2025 3,200,000.00 12/29/2021

1.08%
3,136,448.00
3,196,131.62

99.18 4.41%
3,173,782.85
4,622.22

0.79%
(22,348.77)
AAA/AA
AA

0.21 0.21
3133EPRS6 FEDERAL FARM CREDIT BANKS
FUNDING CORP 4.875 07/28/2025 5,250,000.00 08/22/2023

5.09%
5,229,105.00
5,246,502.68
100.17

4.31%
5,258,877.80
44,789.06

1.32%
12,375.12
AAA/AA
AA

0.33 0.32
3133ENP95 FEDERAL FARM CREDIT BANKS
FUNDING CORP 4.25 09/30/2025 4,200,000.00 05/30/2023

4.49%
4,177,656.00
4,195,232.58

99.97 4.31%
4,198,819.84
495.83

1.05%
3,587.26
AAA/AA
AA

0.50 0.49
3130ATUC9 FEDERAL HOME LOAN BANKS 4.5
12/12/2025 4,000,000.00 02/14/2023

4.40%
4,010,520.00
4,002,601.94
100.21

4.18%
4,008,536.84
54,500.00

1.00%
5,934.90
AAA/AA
AA

0.70 0.67
3130ALHH0 FEDERAL HOME LOAN BANKS 0.96
03/05/2026 3,000,000.00 03/28/2022

2.68%
2,806,200.00
2,954,415.87

97.12 4.15%
2,913,695.97
2,080.00

0.73%
(40,719.90)
AAA/AA
AA

0.93 0.91
3133EPCR4 FEDERAL FARM CREDIT BANKS
FUNDING CORP 4.75 03/09/2026 5,000,000.00 04/26/2023

3.87%
5,118,550.00
5,038,724.07
100.62

4.07%
5,031,052.15
14,513.89

1.26%
(7,671.92)
AAA/AA
AA

0.94 0.91
3130AWLZ1 FEDERAL HOME LOAN BANKS 4.75
06/12/2026 5,250,000.00 08/22/2023

4.85%
5,235,772.50
5,243,928.30
100.81

4.04%
5,292,636.25
75,505.21

1.33%
48,707.94
AAA/AA
AA

1.20 1.14
3130ANMH0 FEDERAL HOME LOAN BANKS 1.1
08/20/2026 2,000,000.00 09/08/2022

3.68%
1,810,600.00
1,933,493.13

96.02 4.09%
1,920,301.52
2,505.56

0.48%
(13,191.61)
AAA/AA
AA

1.39 1.35
3133EMNW8 FEDERAL FARM CREDIT BANKS
FUNDING CORP 0.7 01/27/2027 2,000,000.00 04/25/2022

3.01%
1,795,000.00
1,921,398.96

94.24 4.01%
1,884,815.02
2,488.89

0.47%
(36,583.94)
AAA/AA
AA

1.83 1.78
3130AL5A8 FEDERAL HOME LOAN BANKS 0.9
02/26/2027 5,000,000.00 --

3.15%
4,501,000.00
4,800,237.37

94.45 3.96%
4,722,372.20
4,375.00

1.18%
(77,865.17)
AAA/AA
AA

1.91 1.85
3133EPBM6 FEDERAL FARM CREDIT BANKS
FUNDING CORP 4.125 08/23/2027 3,800,000.00 02/24/2023

4.36%
3,763,862.00
3,780,717.58
100.38

3.96%
3,814,486.55
16,545.83

0.96%
33,768.97
AAA/AA
AA

2.40 2.25
3130ATUS4 FEDERAL HOME LOAN BANKS 4.25
12/10/2027 6,000,000.00 01/25/2023

3.63%
6,162,990.00
6,090,061.37
100.86

3.91%
6,051,559.68
78,625.00

1.52%
(38,501.69)
AAA/AA
AA

2.70 2.49
35 Item 1D - Page 39
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HOLDINGS REPORT
City of Palm Springs | Account #10805 | As of March 31, 2025 Cusip Security Description Par Value/
Units
Purchase
Date
Purchase
Yield
Cost Value
Book Value
Mkt
Price
Mkt
YTM
Market Value
Accrued Int.
% of Port.

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
3133EPAV7 FEDERAL FARM CREDIT BANKS
FUNDING CORP 3.875 02/14/2028 6,000,000.00 02/14/2023

4.07%
5,948,760.00
5,970,547.53

99.76 3.96%
5,985,725.58
30,354.17

1.50%
15,178.05
AAA/AA
AA

2.88 2.68
3130ATS57 FEDERAL HOME LOAN BANKS 4.5
03/10/2028 6,000,000.00 03/30/2023

3.89%
6,163,404.00
6,097,173.81
101.62

3.91%
6,097,178.16
15,750.00

1.53%

4.35 AAA/AA
AA

2.94 2.73
3133EPGW9 FEDERAL FARM CREDIT BANKS
FUNDING CORP 3.875 04/25/2028 5,000,000.00 04/26/2023

3.64%
5,053,550.00
5,032,863.56

99.75 3.96%
4,987,251.20
83,958.33

1.25%
(45,612.36)
AAA/AA
AA

3.07 2.82
3133EPNH4 FEDERAL FARM CREDIT BANKS
FUNDING CORP 3.875 06/21/2028 7,000,000.00 06/22/2023

4.10%
6,928,110.00
6,953,635.87

99.70 3.98%
6,978,661.27
75,347.22

1.75%
25,025.40
AAA/AA
AA

3.22 2.97
3130AWTR1 FEDERAL HOME LOAN BANKS

4.375 09/08/2028 5,000,000.00 10/19/2023

5.04%
4,856,850.00
4,899,273.73
101.48

3.91%
5,074,204.70
13,975.69

1.27%
174,930.97
AAA/AA
AA

3.44 3.16
3130AXQK7 FEDERAL HOME LOAN BANKS 4.75
12/08/2028 7,100,000.00 01/23/2024

4.10%
7,299,865.00
7,251,246.15
102.75

3.94%
7,295,595.91
105,859.03

1.83%
44,349.76
AAA/AA
AA

3.69 3.32
3133ERAK7 FEDERAL FARM CREDIT BANKS
FUNDING CORP 4.375 04/10/2029 5,200,000.00 04/25/2024

4.71%
5,122,780.00
5,137,285.41
101.55

3.95%
5,280,613.99
108,062.50

1.32%
143,328.57
AAA/AA
AA

4.03 3.59
3133ERDH1 FEDERAL FARM CREDIT BANKS
FUNDING CORP 4.75 04/30/2029 8,000,000.00 05/07/2024

4.53%
8,077,200.00
8,063,271.73
102.67

4.03%
8,213,946.08
159,388.89

2.06%
150,674.35
AAA/AA
AA

4.08 3.62
3130B1BC0 FEDERAL HOME LOAN BANKS

4.625 06/08/2029 8,000,000.00 06/06/2024

4.35%
8,097,920.00
8,081,948.37
102.46

3.98%
8,197,097.84
116,138.89

2.05%
115,149.47
AAA/AA
AA

4.19 3.73
107,931,216.50 100.39 108,981,211.40 27.29% 2.46
Total Agency 108,600,000.00 4.00% 108,490,691.63 3.95% 1,022,231.22 490,519.77 2.25

AGENCY CMBS
3137BSRE5 FHMS K-059 A2 3.12 09/25/2026 2,750,000.00 02/18/2022

2.07%
2,868,164.06
2,787,096.36

98.34 4.24%
2,704,216.35
7,150.00

0.68%
(82,880.01)

AAA/AAA
AAA

1.49 1.33
3137H4BY5 FHMS K-746 A2 2.031 09/25/2028 7,000,000.00 10/18/2023

5.43%
5,993,476.56
6,291,747.73

92.84 4.27%
6,498,847.60
11,847.50

1.63%
207,099.87
AAA/AA
AAA

3.49 3.25
8,861,640.62 94.46 9,203,063.95 2.30% 2.90
Total Agency CMBS 9,750,000.00 4.44% 9,078,844.09 4.26% 18,997.50 124,219.86 2.69 CASH
CCYUSD Receivable 144,314.78 --

0.00%
144,314.78
144,314.78

1.00 0.00%
144,314.78

0.00 0.04%

0.00 AAA/AAA
AAA

0.00 0.00
36 Item 1D - Page 40
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HOLDINGS REPORT
City of Palm Springs | Account #10805 | As of March 31, 2025 Cusip Security Description Par Value/
Units
Purchase
Date
Purchase
Yield
Cost Value
Book Value
Mkt
Price
Mkt
YTM
Market Value
Accrued Int.
% of Port.

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
Total Cash 144,314.78 0.00%
144,314.78
144,314.78

1.00 0.00%
144,314.78

0.00 0.04%

0.00 0.00

0.00 CORPORATE
023135CE4 AMAZON.COM INC 3.0
04/13/2025 1,500,000.00 04/25/2022

2.96%
1,501,515.00
1,500,016.80

99.95 4.52%
1,499,208.32
21,000.00

0.38%
(808.49)
A/AA
AA

0.04 0.03
037833DT4 APPLE INC 1.125 05/11/2025 2,000,000.00 05/25/2022

2.82%
1,903,380.00
1,996,424.79

99.62 4.58%
1,992,327.06
8,750.00

0.50%
(4,097.73)
AAA/AA
NA

0.11 0.11
91159HHZ6 US BANCORP 1.45 05/12/2025 800,000.00 01/24/2022

1.64%
794,984.00
799,828.91

99.62 4.76%
796,975.44
4,478.89

0.20%
(2,853.47)
A/A
A

0.11 0.11
69353REQ7 PNC BANK NA (DELAWARE) 3.25
06/01/2025 2,500,000.00 08/25/2022

3.92%
2,456,550.00
2,497,367.97

99.71 4.97%
2,492,679.63
27,083.33

0.62%
(4,688.35)
A/A
A

0.17 0.17
69371RR99 PACCAR FINANCIAL CORP 3.55
08/11/2025 3,000,000.00 08/11/2022

3.60%
2,995,680.00
2,999,477.80

99.69 4.41%
2,990,581.26
14,791.67

0.75%
(8,896.54)
A/A
NA

0.36 0.36
437076CR1 HOME DEPOT INC 4.0 09/15/2025 925,000.00 09/12/2022

4.01%
924,667.00
924,949.07

99.80 4.43%
923,179.44
1,644.44

0.23%
(1,769.63)
A/A
A

0.46 0.45
58933YAY1 MERCK & CO INC 0.75 02/24/2026 4,000,000.00 --

2.77%
3,742,920.00
3,931,730.11

97.00 4.20%
3,879,831.88
3,083.33

0.97%
(51,898.23)
AA/A
NA

0.90 0.88
46647PBK1 JPMORGAN CHASE & CO 2.083
04/22/2026 3,300,000.00 --

2.53%
3,277,439.50
3,299,252.46

99.84 6.16%
3,294,611.56
30,359.72

0.83%
(4,640.90)
A/A
AA

1.06 0.06
06406FAC7 BANK OF NEW YORK MELLON
CORP 2.8 05/04/2026 2,000,000.00 01/25/2023

4.38%
1,904,400.00
1,968,106.62

98.42 4.29%
1,968,497.22
22,866.67

0.49%
390.60
AA/A
AA

1.09 1.05
808513BR5 CHARLES SCHWAB CORP 1.15
05/13/2026 2,250,000.00 --

3.39%
2,067,262.50
2,197,316.62

96.55 4.35%
2,172,302.89
9,918.75

0.54%
(25,013.73)
A/A
A

1.12 1.08
91159HHN3 US BANCORP 2.375 07/22/2026 2,000,000.00 08/11/2022

3.49%
1,918,340.00
1,972,893.65

97.63 4.25%
1,952,690.48
9,104.17

0.49%
(20,203.17)
A/A
A

1.31 1.26
24422EVB2 JOHN DEERE CAPITAL CORP 2.25
09/14/2026 2,500,000.00 --

3.83%
2,357,655.00
2,446,933.22

97.23 4.23%
2,430,774.98
2,656.25

0.61%
(16,158.25)
A/A
A

1.46 1.41
437076CV2 HOME DEPOT INC 4.95
09/30/2026 3,600,000.00 12/21/2023

4.42%
3,647,736.00
3,625,185.87
101.05

4.22%
3,637,634.51
495.00

0.91%
12,448.64
A/A
A

1.50 1.35
717081EA7 PFIZER INC 3.0 12/15/2026 4,000,000.00 --

4.00%
3,852,095.00
3,937,397.39

97.99 4.23%
3,919,543.08
35,333.33

0.98%
(17,854.31)
A/A
NA

1.71 1.63
37 Item 1D - Page 41
,-._,.. CHANDLER
~ , • • ASSET MANAGEMENT

HOLDINGS REPORT
City of Palm Springs | Account #10805 | As of March 31, 2025 Cusip Security Description Par Value/
Units
Purchase
Date
Purchase
Yield
Cost Value
Book Value
Mkt
Price
Mkt
YTM
Market Value
Accrued Int.
% of Port.

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
87612EBM7 TARGET CORP 1.95 01/15/2027 3,250,000.00 --

2.59%
3,164,240.00
3,215,847.49

96.25 4.14%
3,128,139.50
13,379.17

0.78%
(87,707.99)
A/A
A

1.79 1.72
742718FV6 PROCTER & GAMBLE CO 1.9
02/01/2027 2,550,000.00 01/27/2022

1.93%
2,546,379.00
2,548,669.39

96.35 3.99%
2,456,801.55
8,075.00

0.62%
(91,867.84)
AA/AA
NA

1.84 1.77
594918BY9 MICROSOFT CORP 3.3 02/06/2027 3,000,000.00 01/25/2023

3.96%
2,926,980.00
2,966,443.56

98.71 4.03%
2,961,405.75
15,125.00

0.74%
(5,037.81)

AAA/AAA
NA

1.85 1.76
57636QAR5 MASTERCARD INC 3.3 03/26/2027 4,000,000.00 05/30/2023

4.36%
3,852,800.00
3,923,603.73

98.39 4.15%
3,935,439.00
1,833.33

0.99%
11,835.27
AA/A
NA

1.99 1.90
92826CAL6 VISA INC 1.9 04/15/2027 4,000,000.00 02/14/2023

4.44%
3,617,920.00
3,812,858.78

95.69 4.13%
3,827,518.56
35,044.44

0.96%
14,659.78
AA/AA
NA

2.04 1.95
665859AW4 NORTHERN TRUST CORP 4.0
05/10/2027 3,000,000.00 06/13/2022

4.20%
2,973,570.00
2,988,645.43

99.55 4.23%
2,986,385.67
47,000.00

0.75%
(2,259.76)
A/A
A

2.11 1.97
22160KAM7 COSTCO WHOLESALE CORP 3.0
05/18/2027 2,000,000.00 08/24/2022

3.50%
1,956,700.00
1,980,507.47

97.99 3.99%
1,959,808.88
22,166.67

0.49%
(20,698.59)
AA/AA
NA

2.13 2.02
037833DB3 APPLE INC 2.9 09/12/2027 2,000,000.00 02/14/2023

4.45%
1,872,980.00
1,931,961.73

97.23 4.10%
1,944,591.64
3,061.11

0.49%
12,629.91
AAA/AA
NA

2.45 2.33
857477BS1 STATE STREET CORP 2.203
02/07/2028 1,500,000.00 02/14/2023

4.76%
1,362,523.37
1,435,901.05

96.05 4.67%
1,440,790.65
4,956.75

0.36%
4,889.60
AA/A
AA

2.86 1.78
24422EXH7 JOHN DEERE CAPITAL CORP 4.5
01/16/2029 2,500,000.00 06/06/2024

4.83%
2,466,550.00
2,472,469.30
100.47

4.36%
2,511,830.73
23,437.50

0.63%
39,361.43
A/A
A

3.80 3.42
69371RS80 PACCAR FINANCIAL CORP 4.6
01/31/2029 3,000,000.00 02/12/2024

4.64%
2,994,863.00
2,996,030.37
100.66

4.41%
3,019,862.76
23,383.33

0.76%
23,832.39
A/A
NA

3.84 3.45
14913UAJ9 CATERPILLAR FINANCIAL SERVICES
CORP 4.85 02/27/2029 3,000,000.00 06/06/2024

4.73%
3,015,000.00
3,012,410.20
101.60

4.40%
3,047,884.59
13,741.67

0.76%
35,474.39
A/A
A

3.91 3.52
532457BV9 ELI LILLY AND CO 3.375
03/15/2029 5,200,000.00 04/24/2024

4.96%
4,846,452.00
4,913,832.22

96.75 4.28%
5,030,857.83
7,800.00

1.26%
117,025.61
AA/A
NA

3.96 3.65
023135CG9 AMAZON.COM INC 3.45
04/13/2029 4,000,000.00 07/30/2024

4.35%
3,848,280.00
3,869,840.68

97.54 4.12%
3,901,694.04
64,400.00

0.98%
31,853.36
A/AA
AA

4.04 3.66
06051GLG2 BANK OF AMERICA CORP 5.202
04/25/2029 4,000,000.00 06/06/2024

5.18%
4,002,680.00
4,002,116.78
101.59

4.95%
4,063,789.72
90,168.00

1.02%
61,672.94
A/A
AA

4.07 2.75
Total Corporate 81,375,000.00 3.94%
78,792,541.37
80,168,019.46

98.55 4.39%
80,167,638.60
565,137.53

20.08%
(380.86)

2.10 1.84
38 Item 1D - Page 42
,-._,.. CHANDLER
~ , • • ASSET MANAGEMENT

HOLDINGS REPORT
City of Palm Springs | Account #10805 | As of March 31, 2025 Cusip Security Description Par Value/
Units
Purchase
Date
Purchase
Yield
Cost Value
Book Value
Mkt
Price
Mkt
YTM
Market Value
Accrued Int.
% of Port.

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration

MONEY MARKET
FUND
94975P405 ALLSPRING:GOVT MM I 30,927,910.45 --

4.21%
30,927,910.45
30,927,910.45

1.00 4.21%
30,927,910.45

0.00 7.75%

0.00 AAA/AAA
NA

0.00 0.00
Total Money Market
Fund 30,927,910.45 4.21%
30,927,910.45
30,927,910.45

1.00 4.21%
30,927,910.45

0.00 7.75%

0.00 0.00

0.00 SUPRANATIONAL
459058JB0

INTERNATIONAL BANK FOR

RECONSTRUCTION AND
DEVELOPM 0.625 04/22/2025
2,500,000.00 07/20/2021

0.56%
2,506,400.00
2,500,098.10

99.76 4.68%
2,494,103.35
6,912.08

0.62%
(5,994.75)

AAA/AAA
NA

0.06 0.06
45950VHX7 INTERNATIONAL FINANCE CORP

2.125 04/07/2026 5,000,000.00 --

3.19%
4,817,056.56
4,948,918.42

98.03 4.12%
4,901,505.80
51,354.17

1.23%
(47,412.62)

AAA/AAA
NA

1.02 0.98
Total Supranational 7,500,000.00 2.30%
7,323,456.56
7,449,016.53

98.61 4.31%
7,395,609.15
58,266.25

1.85%
(53,407.38)

0.70 0.67

US TREASURY
91282CAB7 UNITED STATES TREASURY 0.25
07/31/2025 2,800,000.00 10/25/2021

4.30%
2,729,015.63
2,793,748.83

98.66 4.32%
2,762,462.50
1,160.22

0.69%
(31,286.33)
AAA/AA
AA

0.33 0.33
91282CAJ0 UNITED STATES TREASURY 0.25
08/31/2025 2,750,000.00 08/23/2021

0.64%
2,707,353.52
2,745,584.29

98.37 4.25%
2,705,291.02
597.83

0.68%
(40,293.27)
AAA/AA
AA

0.42 0.41
91282CAM3 UNITED STATES TREASURY 0.25
09/30/2025 3,300,000.00 12/28/2021

4.26%
3,194,812.50
3,286,036.38

98.06 4.23%
3,236,088.27

22.54 0.81%
(49,948.11)
AAA/AA
AA

0.50 0.49
91282CAT8 UNITED STATES TREASURY 0.25
10/31/2025 2,750,000.00 08/23/2021

0.67%
2,702,089.84
2,743,325.79

97.76 4.21%
2,688,286.12
2,886.74

0.67%
(55,039.67)
AAA/AA
AA

0.59 0.57
912828M56 UNITED STATES TREASURY 2.25
11/15/2025 3,000,000.00 05/25/2022

2.70%
2,955,585.94
2,992,020.17

98.85 4.14%
2,965,453.11
25,545.58

0.74%
(26,567.06)
AAA/AA
AA

0.63 0.60
91282CBH3 UNITED STATES TREASURY 0.375
01/31/2026 2,800,000.00 10/25/2021

1.07%
2,718,953.13
2,784,133.96

96.96 4.12%
2,714,818.74
1,740.33

0.68%
(69,315.22)
AAA/AA
AA

0.84 0.82
912828P46 UNITED STATES TREASURY 1.625
02/15/2026 6,000,000.00 01/25/2023

3.83%
5,621,250.00
5,891,397.85

97.87 4.13%
5,871,937.50
12,120.17

1.47%
(19,460.35)
AAA/AA
AA

0.88 0.85
9128286L9 UNITED STATES TREASURY 2.25
03/31/2026 5,000,000.00 08/24/2022

3.27%
4,826,562.50
4,951,954.91

98.24 4.06%
4,912,187.50
307.38

1.23%
(39,767.41)
AAA/AA
AA

1.00 0.97
39 Item 1D - Page 43
,-._,.. CHANDLER
~ , • • ASSET MANAGEMENT

HOLDINGS REPORT
City of Palm Springs | Account #10805 | As of March 31, 2025 Cusip Security Description Par Value/
Units
Purchase
Date
Purchase
Yield
Cost Value
Book Value
Mkt
Price
Mkt
YTM
Market Value
Accrued Int.
% of Port.

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
9128286S4 UNITED STATES TREASURY 2.375
04/30/2026 7,000,000.00 --

3.39%
6,803,789.07
6,928,074.25

98.25 4.05%
6,877,363.29
69,806.63

1.72%
(50,710.96)
AAA/AA
AA

1.08 1.04
912828Y95 UNITED STATES TREASURY 1.875
07/31/2026 5,000,000.00 06/27/2022

3.21%
4,743,164.06
4,916,450.96

97.29 3.98%
4,864,453.10
15,538.67

1.22%
(51,997.86)
AAA/AA
AA

1.33 1.29
9128282A7 UNITED STATES TREASURY 1.5
08/15/2026 3,100,000.00 12/28/2021

1.23%
3,137,296.88
3,111,056.65

96.71 3.98%
2,998,160.16
5,780.39

0.75%
(112,896.49)
AAA/AA
AA

1.38 1.34
91282CDG3 UNITED STATES TREASURY 1.125
10/31/2026 5,000,000.00 08/11/2022

3.00%
4,629,687.50
4,861,102.77

95.70 3.96%
4,784,960.95
23,618.78

1.20%
(76,141.82)
AAA/AA
AA

1.59 1.53
912828U24 UNITED STATES TREASURY 2.0
11/15/2026 3,000,000.00 05/25/2022

2.76%
2,903,789.06
2,965,083.79

96.97 3.95%
2,909,064.00
22,707.18

0.73%
(56,019.79)
AAA/AA
AA

1.63 1.56
912828V98 UNITED STATES TREASURY 2.25
02/15/2027 7,000,000.00 --

3.60%
6,696,316.41
6,834,705.96

97.00 3.92%
6,790,273.42
19,578.73

1.70%
(44,432.54)
AAA/AA
AA

1.88 1.81
91282CEF4 UNITED STATES TREASURY 2.5
03/31/2027 5,000,000.00 06/27/2022

4.27%
4,839,648.44
4,932,702.20

97.34 3.90%
4,867,190.00
341.53

1.22%
(65,512.20)
AAA/AA
AA

2.00 1.92
91282CEN7 UNITED STATES TREASURY 2.75
04/30/2027 5,000,000.00 08/24/2022

4.26%
4,905,859.38
4,958,190.33

97.71 3.90%
4,885,742.20
57,734.81

1.22%
(72,448.13)
AAA/AA
AA

2.08 1.97
912828X88 UNITED STATES TREASURY 2.375
05/15/2027 7,000,000.00 --

3.79%
6,635,781.25
6,805,932.72

96.89 3.91%
6,782,617.17
62,917.82

1.70%
(23,315.55)
AAA/AA
AA

2.12 2.02
91282CFB2 UNITED STATES TREASURY 2.75
07/31/2027 5,000,000.00 11/23/2022

4.04%
4,726,953.13
4,863,796.67

97.46 3.90%
4,873,242.20
22,790.06

1.22%
9,445.53
AAA/AA
AA

2.33 2.22
9128282R0 UNITED STATES TREASURY 2.25
08/15/2027 7,000,000.00 05/30/2023

3.94%
6,545,546.88
6,743,945.09

96.31 3.89%
6,741,601.58
19,578.73

1.69%
(2,343.51)
AAA/AA
AA

2.38 2.28
91282CFM8 UNITED STATES TREASURY 4.125
09/30/2027 7,000,000.00 05/30/2023

3.94%
7,050,039.06
7,028,828.57
100.58

3.88%
7,040,742.17
788.93

1.76%
11,913.60
AAA/AA
AA

2.50 2.35
9128283F5 UNITED STATES TREASURY 2.25
11/15/2027 6,000,000.00 01/25/2023

3.58%
5,651,718.75
5,809,775.69

95.93 3.90%
5,755,781.28
51,091.16

1.44%
(53,994.41)
AAA/AA
AA

2.63 2.49
91282CGH8 UNITED STATES TREASURY 3.5
01/31/2028 6,900,000.00 06/22/2023

4.11%
6,723,726.56
6,791,596.55

98.95 3.89%
6,827,765.63
40,027.62

1.71%
36,169.08
AAA/AA
AA

2.84 2.66
91282CGT2 UNITED STATES TREASURY 3.625
03/31/2028 5,200,000.00 11/15/2023

4.56%
5,008,859.38
5,068,942.41

99.27 3.88%
5,162,218.78
515.03

1.29%
93,276.37
AAA/AA
AA

3.00 2.81
91282CHE4 UNITED STATES TREASURY 3.625
05/31/2028 7,000,000.00 05/30/2023

3.81%
6,940,664.06
6,962,456.30

99.18 3.90%
6,942,578.16
85,048.08

1.74%
(19,878.14)
AAA/AA
AA

3.17 2.93
9128284V9 UNITED STATES TREASURY 2.875
08/15/2028 5,250,000.00 08/22/2023

4.48%
4,878,398.44
4,998,316.04

96.77 3.90%
5,080,605.50
18,762.95

1.27%
82,289.45
AAA/AA
AA

3.38 3.17
40 Item 1D - Page 44
,-._,.. CHANDLER
~ , • • ASSET MANAGEMENT

HOLDINGS REPORT
City of Palm Springs | Account #10805 | As of March 31, 2025 Cusip Security Description Par Value/
Units
Purchase
Date
Purchase
Yield
Cost Value
Book Value
Mkt
Price
Mkt
YTM
Market Value
Accrued Int.
% of Port.

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
91282CJF9 UNITED STATES TREASURY 4.875
10/31/2028 7,000,000.00 02/12/2024

4.14%
7,217,656.25
7,165,454.14
103.18

3.91%
7,222,851.58
143,287.29

1.81%
57,397.44
AAA/AA
AA

3.59 3.21
9128285M8 UNITED STATES TREASURY 3.125
11/15/2028 7,000,000.00 02/12/2024

4.14%
6,696,757.81
6,768,858.57

97.36 3.91%
6,815,156.25
82,786.60

1.71%
46,297.68
AAA/AA
AA

3.63 3.34
912810FG8 UNITED STATES TREASURY 5.25
02/15/2029 7,000,000.00 --

4.57%
7,201,062.51
7,162,419.45
105.09

3.82%
7,356,015.66
45,683.70

1.84%
193,596.21
AAA/AA
AA

3.88 3.48
91282CKG5 UNITED STATES TREASURY 4.125
03/31/2029 4,000,000.00 06/20/2024

4.29%
3,971,562.50
3,976,193.38
100.73

3.93%
4,029,218.76
450.82

1.01%
53,025.38
AAA/AA
AA

4.00 3.66
9128286T2 UNITED STATES TREASURY 2.375
05/15/2029 5,200,000.00 07/30/2024

4.06%
4,821,781.25
4,874,545.90

94.15 3.93%
4,895,718.78
46,738.95

1.23%
21,172.87
AAA/AA
AA

4.12 3.83
91282CKT7 UNITED STATES TREASURY 4.5
05/31/2029 5,000,000.00 06/20/2024

4.27%
5,050,585.94
5,042,626.71
102.17

3.93%
5,108,398.45
75,412.09

1.28%
65,771.74
AAA/AA
AA

4.17 3.72
91282CFL0 UNITED STATES TREASURY 3.875
09/30/2029 5,000,000.00 10/30/2024

4.50%
4,943,750.00
4,948,513.23

99.72 3.94%
4,985,940.00
529.37

1.25%
37,426.77
AAA/AA
AA

4.50 4.09
Total US Treasury 165,050,000.00 3.72%
160,180,017.63
162,707,770.48

98.48 3.96%
162,454,183.82
955,896.71

40.68%
(253,586.66)

2.40 2.24
Total Portfolio 403,397,633.05 3.87%
394,210,938.64
399,016,869.62

91.34 4.08%
399,324,168.69
2,620,541.52
100.00%
307,299.07

2.15 1.97
Total Market Value +
Accrued 401,944,710.21
41 Item 1D - Page 45
,-._,.. CHANDLER
~ , • • ASSET MANAGEMENT

HOLDINGS REPORT
City of Palm Springs Reporting | Account #10806 | As of March 31, 2025 Cusip Security Description Par Value/
Units
Purchase
Date
Purchase
Yield
Cost Value
Book Value
Mkt
Price
Mkt
YTM
Market Value
Accrued Int.
% of Port.

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
CASH
CCYUSD Receivable 107,637.45 --

0.00%
107,637.45
107,637.45

1.00 0.00%
107,637.45

0.00 0.18%

0.00 AAA/AAA
AAA

0.00 0.00
Total Cash 107,637.45 0.00%
107,637.45
107,637.45

1.00 0.00%
107,637.45

0.00 0.18%

0.00 0.00

0.00 LAIF
90LAIF$00 Local Agency Investment Fund
State Pool 52,862,617.57 --

4.31%
52,862,617.57
52,862,617.57

1.00 4.31%
52,862,617.57

0.00 88.05%

0.00 NA/NA
NA

0.00 0.00
Total LAIF 52,862,617.57 4.31%
52,862,617.57
52,862,617.57

1.00 4.31%
52,862,617.57

0.00 88.05%

0.00 0.00

0.00 LOCAL GOV

INVESTMENT POOL
09CATR$04 CalTrust STF 701,941.26 --

4.45%
7,074,918.25
7,074,918.25

10.07 4.45%
7,068,548.50

0.00 11.77%
(6,369.76)
NA/AAA
NA

0.00 0.00
Total Local Gov
Investment Pool 701,941.26 4.45%
7,074,918.25
7,074,918.25

10.07 4.45%
7,068,548.50

0.00 11.77%
(6,369.76)

0.00 0.00
Total Portfolio 53,672,196.28 4.32%
60,045,173.27
60,045,173.27

2.07 4.32%
60,038,803.52

0.00 100.00%
(6,369.76)

0.00 0.00
Total Market Value +
Accrued 60,038,803.52
42 Item 1D - Page 46
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TRANSACTIONS
43 Item 1D - Page 47
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TRANSACTION LEDGER
City of Palm Springs | Account #10805|01/01/2025 Through 03/31/2025| Transaction
Type
Settlement
Date CUSIP Quantity Security Description Price Acq/Disp Yield Amount Interest
Pur/Sold Total Amount Gain/Loss

DISPOSITIONS
Maturity 01/06/2025 3133ENKS8 (3,000,000.00)

FEDERAL FARM CREDIT

BANKS FUNDING CORP

1.125 01/06/2025
100.000 1.25% 3,000,000.00 0.00 3,000,000.00 0.00
Maturity 01/07/2025 3135G0X24 (3,100,000.00)

FEDERAL NATIONAL

MORTGAGE ASSOCIATION

1.625 01/07/2025
100.000 1.02% 3,100,000.00 0.00 3,100,000.00 0.00
Maturity 02/15/2025 91282CDZ1 (3,000,000.00) UNITED STATES TREASURY

1.5 02/15/2025 100.000 2.37% 3,000,000.00 0.00 3,000,000.00 0.00 Maturity 03/15/2025 91282CED9 (4,000,000.00) UNITED STATES TREASURY

1.75 03/15/2025 100.000 3.38% 4,000,000.00 0.00 4,000,000.00 0.00 Maturity 03/31/2025 912828ZF0 (2,000,000.00) UNITED STATES TREASURY

0.5 03/31/2025 100.000 0.54% 2,000,000.00 0.00 2,000,000.00 0.00 Total Maturity (15,100,000.00) 15,100,000.00 0.00 15,100,000.00 0.00 TOTAL
DISPOSITIONS (15,100,000.00) 15,100,000.00 0.00 15,100,000.00 0.00 44 Item 1D - Page 48
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TRANSACTION LEDGER
City of Palm Springs Reporting | Account #10806|01/01/2025 Through 03/31/2025| Transaction
Type
Settlement
Date CUSIP Quantity Security Description Price Acq/Disp Yield Amount Interest
Pur/Sold Total Amount Gain/Loss

ACQUISITIONS
Purchase 01/15/2025 90LAIF$00 118,052.70 Local Agency Investment Fund State Pool 1.000 4.36% (118,052.70) 0.00 (118,052.70) 0.00 Purchase 01/31/2025 09CATR$04 2,631.37 CalTrust STF 10.060 4.50% (26,471.65) 0.00 (26,471.65) 0.00 Purchase 02/14/2025 90LAIF$00 10,000,000.00 Local Agency Investment Fund State Pool 1.000 4.32% (10,000,000.00) 0.00 (10,000,000.00) 0.00 Purchase 02/28/2025 09CATR$04 2,378.54 CalTrust STF 10.070 4.46% (23,951.90) 0.00 (23,951.90) 0.00 Purchase 03/11/2025 90LAIF$00 10,000,000.00 Local Agency Investment Fund State Pool 1.000 4.32% (10,000,000.00) 0.00 (10,000,000.00) 0.00 Purchase 03/18/2025 90LAIF$00 28,000,000.00 Local Agency Investment Fund State Pool 1.000 4.32% (28,000,000.00) 0.00 (28,000,000.00) 0.00 Purchase 03/31/2025 09CATR$04 2,646.39 CalTrust STF 10.070 4.45% (26,649.15) 0.00 (26,649.15) 0.00 Total Purchase 48,125,709.00 (48,195,125.40) 0.00 (48,195,125.40) 0.00 TOTAL
ACQUISITIONS 48,125,709.00 (48,195,125.40) 0.00 (48,195,125.40) 0.00 45 Item 1D - Page 49
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IMPORTANT DISCLOSURES
2025 Chandler Asset Management, Inc, An Independent Registered Investment Adviser.

Information contained herein is confidential. Prices are provided by ICE Data Services Inc (“IDS”), an independent pricing source. In the event IDS does not provide a price or if the price provided is not reflective of fair market value, Chandler will obtain pricing from an alternative approved third party pricing source in accordance with our written valuation policy and procedures. Our valuation procedures are also disclosed in Item 5 of our Form ADV Part 2A.

Performance results are presented gross-of-advisory fees and represent the client’s Total Return. The deduction of advisory fees lowers performance results. These results include the reinvestment of dividends and other earnings. Past performance may not be indicative of future results. Therefore, clients should not assume that future performance of any specific investment or investment strategy will be profitable or equal to past performance levels. All investment strategies have the potential for profit or loss. Economic factors, market conditions or changes in investment strategies, contributions or withdrawals may materially alter the performance and results of your portfolio.

Index returns assume reinvestment of all distributions. Historical performance results for investment indexes generally do not reflect the deduction of transaction and/or custodial charges or the deduction of an investment management fee, the incurrence of which would have the effect of decreasing historical performance results. It is not possible to invest directly in an index.

Source ICE Data Indices, LLC (“ICE”), used with permission. ICE permits use of the ICE indices and related data on an “as is” basis; ICE, its affiliates and their respective third party suppliers disclaim any and all warranties and representations, express and/or implied, including any warranties of merchantability or fitness for a particular purpose or use, including the indices, index data and any data included in, related to, or derived therefrom. Neither ICE data, its affiliates or their respective third party providers guarantee the quality, adequacy, accuracy, timeliness or completeness of the indices or the index data or any component thereof, and the indices and index data and all components thereof are provided on an “as is” basis and licensee’s use it at licensee’s own risk. ICE data, its affiliates and their respective third party do not sponsor, endorse, or recommend chandler asset management, or any of its products or services.

This report is provided for informational purposes only and should not be construed as a specific investment or legal advice. The information contained herein was obtained from sources believed to be reliable as of the date of publication, but may become outdated or superseded at any time without notice. Any opinions or views expressed are based on current market conditions and are subject to change. This report may contain forecasts and forward-looking statements which are inherently limited and should not be relied upon as indicator of future results. Past performance is not indicative of future results. This report is not intended to constitute an offer, solicitation, recommendation or advice regarding any securities or investment strategy and should not be regarded by recipients as a substitute for the exercise of their own judgment.

Fixed income investments are subject to interest, credit and market risk. Interest rate risk: the value of fixed income investments will decline as interest rates rise. Credit risk: the possibility that the borrower may not be able to repay interest and principal. Low rated bonds generally have to pay higher interest rates to attract investors willing to take on greater risk. Market risk: the bond market in general could decline due to economic conditions, especially during periods of rising interest rates.

Ratings information have been provided by Moody’s, S&P and Fitch through data feeds we believe to be reliable as of the date of this statement, however we cannot guarantee its accuracy.

Security level ratings for U.S. Agency issued mortgage-backed securities (“MBS”) reflect the issuer rating because the securities themselves are not rated. The issuing U.S. Agency guarantees the full and timely payment of both principal and interest and carries a AA+/Aaa/AAA by S&P, Moody’s and Fitch respectively. 46 Item 1D - Page 50
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PERIODIC TABLE OF ASSET CLASS RETURNS DISCLOSURES
▪ US Small Cap Stocks – Morgan Stanley Capital International (MSCI) Small Cap 1750 – The MSCI Small Cap 1750 is a market capitalization weighted index that measures the performance of small capitalization U.S. stocks.
▪ US Mid Cap Stocks – Morgan Stanley Capital International (MSCI) Mid Cap 450 – The MSCI Mid Cap 450 is a market capitalization weighted index that measures the performance of mid-capitalization U.S. stocks.
▪ US Large Cap Stocks – Standard & Poor’s 500 – The S&P 500 is a market value weighted index of 500 large capitalization stocks. The 500 companies included in the index capture approximately 80% of available U.S. market capitalization.
▪ International Stocks – Morgan Stanley Capital International (MSCI) EAFE – The MSCI EAFE International Equity Index is a market capitalization weighted index that captures international equity performance of large and mid-cap stocks in the developed stock markets of Europe, Australasia, and the Far East.
▪ Emerging Market Stocks – Morgan Stanley Capital International (MSCI) Emerging Markets – The MSCI Emerging Markets Index is a market capitalization weighted index that captures equity performance of large and mid-cap stocks across emerging market countries. ▪ U.S. Real Estate – Morgan Stanley Capital International (MSCI) REIT – The MSCI US REIT Index is a free float-adjusted market capitalization index that is comprised of equity REITs. It represents about 99% of the US REIT universe and securities are classified in the REIT sector according to the Global Industry Classification Standard (GICS®). It excludes Mortgage REITs and selected Specialized REITs.
▪ International Real Estate – S&P Developed Ex-US Property – The S&P Developed Ex-US Property Index is a market capitalization weighted index that captures the performance of a universe of publicly traded property companies based in developing countries outside of the US. The companies included are engaged in real estate related activities, such as property ownership, management, development, rental and investment.
▪ US Core Bonds – ICE BofA US Corporate, Government, Mortgage – The ICE BofA US Corporate, Government, Mortgage index is a broad measure of US investment grade bond performance, including US Treasuries, agencies, investment-grade corporates and mortgage securities. ▪ US High Yield Bonds – ICE BofA US High Yield – The ICE BofA High Yield Bond Index measures the market of USD-denominated, non-investment grade, fixed-rate, taxable corporate bonds. ▪ International Bonds – Bloomberg Barclays Global Aggregate ex-USD Total Return Index Value Unhedged USD – Index from 2/1/2013 – current. This index measures the performance of global investment grade debt from 24 local currency markets. This multi- currency benchmark includes treasury, government-related, corporate and securitized fixed-rate bonds from both developed and emerging markets issuers. S&P Citigroup International Govt Bond – Index from 1/1/2009 – 1/31/2013. This index measures the performance of sovereign bonds of non-U.S. developed countries.
▪ Diversified Commodities – S&P GSCI Commodity Index – The S&P GSCI Commodity Index is a world production-weighted measure of general commodity price movements and inflation in the world economy. It consists of a basket of physical commodity futures contracts.

Source ICE Data Indices, LLC ("ICE"), used with permission. ICE permits the use of ICE Indices and related data on an “as is” basis; ICE, its affiliates and their respective third party suppliers disclaim any and all warranties and representation, express and/or implied, including any warranties of merchantability or fitness for a particular purpose or use, including the indices, index data and any data included in, related to, or derived therefrom. Neither ICE data, its affiliates or their respective third-party providers guarantee the quality, adequacy, accuracy, timeliness or completeness of the indices or the index data or any component thereof, and the indices and index data and all components thereof are provided on an “as is” basis and licensee’s use is at licensee’s own risk. ICE data, its affiliates and their respective third party do not sponsor, endorse, or recommend Chandler, or any of its products or services.

Bloomberg® and Bloomberg Barclays Global Aggregate ex-USD Total Return Index Value Unhedged USD are service marks of Bloomberg Finance L.P. and its affiliates, including Bloomberg Index Services Limited ("BISL"), the administrator of the index (collectively, "Bloomberg") and have been licensed for use for certain purposes by Chandler Asset Management Inc. Bloomberg is not affiliated with Chandler Asset Management Inc., and Bloomberg does not approve, endorse, review, or recommend this product. Bloomberg does not guarantee the timeliness, accurateness, or completeness of any data or information relating to this product.

Morgan Stanley Capital International® (MSCI), the MSCI indices are service marks of Morgan Stanley Capital International and its affiliates, and have been licensed for use for certain purposes by Chandler Asset Management Inc. MSCI is not affiliated with Chandler Asset Management Inc., and MSCI does not approve, endorse, review, or recommend these products. MSCI does not guarantee the timeliness, accurateness, or completeness of any data or information relating to these products.

Disclosure: This report is provided for informational purposes only and should not be construed as specific investment or legal advice. The information contained herein was obtained from sources believed to be reliable as of the date of publication, but may become outdated or superseded at any time without notice.

Past performance is not indicative of future results. This report is not intended to constitute an offer, solicitation, recommendation or advice regarding any securities or investment strategy and should not be regarded by recipients as a substitute for the exercise of their own judgement.

All investments contain risk and may lose value. Fixed income investments are subject to interest rate, credit, and market risk. Interest rate risk: the value of fixed income investments will decline as interest rates rise.

Credit risk: the possibility that the borrower may not be able to repay interest and principal. Low rated bonds generally have to pay higher interest rates to attract investors willing to take on greater risk. Market risk:
the bond market in general could decline due to economic conditions, especially during periods of rising interest rates. International: Non-US markets may be more volatile due to a variety of factors including less liquidity, transparency and oversight of companies and assets. Values of non-US investments may fluctuate due to changes in currency exchange rates. Non-US companies are also subject to risks that come with political and economic stability that may affect their respective countries. These risks may be greater in emerging market countries. Equities: Investments on equities are subject to risks from stock market fluctuations that occur in response to economic and business developments. 47 Item 1D - Page 51
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BENCHMARK DISCLOSURES
Benchmark Disclosure
ICE BofA 1-5 Yr Unsubordinated US Treasury
& Agency Index
The ICE BofA 1-5 Year Unsubordinated US Treasury & Agency Index tracks the performance of US dollar denominated US Treasury and nonsubordinated US agency debt issued in the US domestic market. Qualifying securities must have an investment grade rating (based on an average of Moody’s, S&P and Fitch). Qualifying securities must have at least one year remaining term to final maturity and less than five years remaining term to final maturity, at least 18 months to maturity at time of issuance, a fixed coupon schedule, and a minimum amount outstanding of $1 billion for sovereigns and $250 million for agencies. 48 Item 1D - Page 52
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CITY COUNCIL STAFF REPORT
05/14/2025
SUBJECT:

ADOPT THE CITY’S FISCAL YEAR 2025-26 INVESTMENT POLICY GOVERNING

THE INVESTMENT OF CITY FUNDS
RECOMMENDATION:

Adopt a Resolution entitled, “A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF PALM SPRINGS, CALIFORNIA, ADOPTING AN INVESTMENT

POLICY GOVERNING THE INVESTMENT OF CITY FUNDS AND
SUPERSEDING RESOLUTION NO. 25200”; and

1. Delegate the City Council’s authority to invest and reinvest public funds, and to sell or exchange securities so purchased, to the City Treasurer for one year or until earlier revoked by the City Council.

2. Attachments
Item 1E

CITY COUNCIL STAFF REPORT
DATE: MA
Y 14, 2025 CONSENT CALENDAR
SUBJECT: A DOPT THE CITY’S FISCAL YEAR 2025 -26 INVESTMENT POLICY

GOVERNING THE INVESTMENT OF CITY FUNDS
FROM: Scott C. Stiles, City Manager
BY: D epart
ment of Finance and Treasury
SUMMARY:

Gover
nment Code 53646(1)(2) provides for the City Council’s annual consideration of the City’s Investment Policy at a public meeting. Additionally, the City Council may elect to delegate its authority to invest and reinvest City funds to the City Treasurer for up to one year pursuant to California Code section 53607. The proposed Investment Policy and delegation of authority will be effective upon adoption by the City Council.

RECOMMENDATION:

1. Adopt a Resolution entitled, “A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF PALM SPRINGS, CALIFORNIA, ADOPTING AN INVESTMENT POLICY

GOVERNING

THE INVESTMENT OF CITY FUNDS AND SUPERSEDING
RESOLUTION NO. 25200”; and

2. Delegat
e the City Council’s authority to invest and reinvest public funds, and to sell or exchange securities so purchased, to the City Treasurer for one year or until earlier r
evoked by the City Council.

BACKGROUND:

The Cit
y of Palm Springs has had an investment policy since 1985. The Treasurer and Finance Department Staff ensure that all investments are consistent with the Investment Policy and provide oversight with appropriate checks and balances over the investment process. The Policy requires annual adoption by City Council.

On January 28, 2021, the City Council approved the appointment of Chandler Asset Management (CAM) to provide investment advisory services to the City . A lthough Chandler Asset Management works with Staff to actively manage the portion of the City’s Item 1E - Page 1
City Council Staff Report
May 14, 2025-- Page 2
Fiscal Year 2025-26 Investment Policy

cash portfolio not needed to meet near -term obligations, fiduciary responsibility for investments remains with the City.

STAFF ANALYSIS:

In collaboration with the City of Palm Springs’ investment advisor, Chandler Asset Management and the Finance Sub- Committee recently reviewed the City’s investment policy. The team from Chandler Asset Management recommended changes that incorporated industry best practices and updates to align with California State Code.

Those changes are listed in the document, with comments, in Attachment A with a summary memo outlining changes in Attachment B.

The unchanged language in the policy is consistent with updated State statues and enables the portfolio to transition from passive management (hold all securities until maturity) to active management (responsive to changing market conditions). The Investment Portfolio will continue to be managed with the policy prioritization of Safety first, Liquidity second, and Return on Investment third.

Additionally, attached for the City Council’s consideration is the current Management Directive ( Attachment C) and the Staff Report from October 2021 which reviews the City’s directive to Chandler Asset Management on Socially Responsible Investing (SRI) and Environmental, Social, and Governance (ESG) strategies (Attachment D).

The Finance Sub- Committee reviewed the Investment Policy and the recommended changes with Chandler Asset Management at the quarterly meeting on April 24, 2025.

The Finance Sub- Committee is in agreement with the changes. In addition to the Investment Policy changes, the Finance Sub- Committee also recommended making a change to the issuer’s list in Attachment E . The issuers list is comprised of large corporations the City can invest in the company’s corporate bond issuances. The list meets the City’s ESG stra tegy of not investing in companies that support firearm sales and/or manufacturing and companies that support the manufacturing of Alcohol and Tobacco. The Finance Sub-Committee is recommending adding Wal-Mart to this list the City can invest in their corporate bond issuances. Chandler Asset Management confirms the Wal-Mart Corporation is present on many California municipal issuers lists.

Pursuant to the delegation of authority authorized by Government Code section 53607, the City Treasurer is required to make a monthly report of investment transactions to the City Council. Each quarterly Cash and Investments Report (“Treasurer’s Report”) describes the portfolio’s composition and recent performance and reports the each of the quarters monthly investment transactions. Within each Treasurer’s Report, the Treasurer certifies that all investments were made in compliance with the Investment Policy and that there are adequate funds to pay City obligations for at least six months.

Item 1E - Page 2
City Council Staff Report
May 14, 2025-- Page 3
Fiscal Year 2025-26 Investment Policy

ALIGNMENT WITH STRATEGIC PLANNING:

This item aligns with the City Council’s Strategic Plan Foundation of Financial and Organizational Well-Being.

FISCAL IMPACT:

None.

REVIEWED BY:

Department Director: Kristopher J. Mooney
City Manager: Scott Stiles

ATTACHMENTS:

A. City of Palm Springs Investment Policy (Redlined showing updates) B. Memo from Chandler Asset Management
C. City of Palm Springs Management Directive
D. October 2021 Staff Report with SRI/ESG Strategies
E. City of Palm Springs Issuer List
F. City of Palm Springs Investment Policy, Final
G. Resolution

Item 1E - Page 3

ATTACHMENT A

Item 1E - Page 4

CITY OF PAL M SPRINGS
2025- 2026

INVESTMENT POLICY
Item 1E - Page 5

CITY OF PALM SPRINGS

INVESTMENT POLICY AND GUIDELINES

2 1.0 Purpose:

The purpose of this Investment Policy (Policy) is to set forth the investment and operational guidelines for the management and investment of the public funds of the City of Palm Springs, California. The Policy requires adoption by, and can only be changed by, a majority vote of the City Council.

The Policy is designed to ensure the prudent management of public funds, the availability of operating and capital funds when needed, and an investment total return that is comparable to established benchmarks, as appropriate.

A copy of this statement will be provided to all investment dealers and investment managers doing business with the City of Palm Springs, and will be provided to other interested parties on request. Receipt of this policy, including confirmation that it has been reviewed by individuals working directly with the City’s investment account will be received prior to any organization providing investment services to the City of Palm Springs.

2.0 Policy:

The investment Policy and practices of the City of Palm Springs are based upon state law and prudent money management consistent with City policies. The primary goals of these practices are:

A. To ensure compliance with all Federal, State, and local laws governing the investment of public funds under the control of the Director of Finance/Treasurer.

B. To protect the principal of monies entrusted to the City’s Finance Department.

C. Achieve a reasonable rate of return within the parameters of prudent risk management while minimizing the potential for capital losses arising from market changes or issuer default.

3.0 Scope:

This Investment Policy applies to all financial assets of the City of Palm Springs. These funds are accounted for in the City’s Comprehensive Annual Financial Report.

The Director of Finance/Treasurer is responsible for investing the unexpended cash in the City Treasury for all funds, except for the employee’s retirement funds or deferred compensation accounts, which are administered separately, and those funds which ar e managed separately by trustees appointed under indenture agreements.

Item 1E - Page 6

CITY OF PALM SPRINGS

INVESTMENT POLICY AND GUIDELINES

3 These funds include, but are not limited to:
• General Fund
• Special Revenue Funds
• Capital Project Funds
• Debt Service Fund
• Enterprise Funds
• Internal Service Funds
• Trust and Agency Funds
• Bond Proceeds
• Any new fund created by the legislative body, unless specifically exempted This Investment Policy applies to all transactions involving the financial assets and related activity of the foregoing funds.

4.0 Prudence:

The standard of prudence to be used by the Director of Finance/Treasurer shall be the “prudent investor standard.” This shall be applied in the context of managing an overall portfolio. The “prudent investor standard” shall be applied to the City, pursuant to California Government Code Section 53600.3 which provides, in pertinent part:
“ … 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 genera l 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.…”

4.1 Personal Responsibility:

The Director of Finance/Treasurer, as the investment officer acting in accordance with written procedures and the Investment Policy and exercising due diligence, shall be relieved of personal responsibility for an individual security’s credit risk or market price changes, provided deviations from expectations are reported to the City Council in a timely fashion and appropriate action is taken to control adverse developments.

Item 1E - Page 7

CITY OF PALM SPRINGS

INVESTMENT POLICY AND GUIDELINES

4 5.0 Objective:

Consistent with this aim, investments are made under the terms and conditions of California Government Code Section 53600, et seq. Criteria for selecting investments and the absolute order of priority are:

Safety
Safety of principal is the foremost objective of the investment program. Investments of the City of Palm Springs shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. To attain this objective, diversification is required in order that potential losses on individual securities do not exceed the income generated from the remainder of the portfolio.

Liquidity
The City of Palm Springs’s investment portfolio will remain sufficiently liquid to enable the City to meet all operating requirements which might be reasonably anticipated and to maintain compliance with any indenture agreement, as applicable. Liquidity is essential to the safety of principal.

Return on Investments
The City of Palm Springs’s investment portfolio shall be designed with the objective of attaining a market -average rate of return throughout budgetary and economic cycles (market interest rates), within the City’s Investment Policy’s risk parameters and the City’s cash flow needs. See also Section 16.1.

6.0 Delegation of Authority:

The Director of Finance/Treasurer shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate officials. The responsibility for the day-to-day investment of City funds may be delegated to other Department of Finance staff members as determined by the Director of Finance/Treasurer.

Procedures should include references to: ACH/wire transfer agreements, and collateral/depository agreements, as appropriate. Such procedures shall include explicit delegation of authority to persons responsible for investment transactions. No person may engage in an investment transaction except as provided under the terms of this policy and the procedures established by the Director of Finance/Treasurer. The Director of Finance/Treasurer shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate officials. Under the provisions of California Government Code 53600.3, the Director of Finance/Treasurer is a trustee Item 1E - Page 8

CITY OF PALM SPRINGS

INVESTMENT POLICY AND GUIDELINES

5 and a fiduciary subject to the prudent investor standard.

The City may engage the services of one or more external investment managers to assist in the management of the City’s investment portfolio in a manner consistent with the City’s Investment Policy and objectives. Such external managers may be granted discretion to purchase and sell investment securities in accordance with this Investment Policy. Such managers must be registered under the Investment Advisers Act of 1940.

7.0 Ethics and Conflicts of Interest:

Consistent with state statutes and regulations and the City’s local policies relating to conflicts of interest, all persons involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the investment program, or which could impair their ability to make impartial investment decisions.

Employees and investment officers are required to file annual disclosure statements as required for “public officials who manage public investments” [as defined and required by the Political Reform Act and related regulations, including Government Code Sections 81000, et seq., and the rules, regulations and guidelines promulgated by California’s Fair Political Practices Commission (FPPC)].

8.0 Authorized Financial Dealers and Institutions:

The City’s Director of Finance/Treasurer will maintain a list of the financial institutions and brokers/dealers authorized to provide investment and depository services and will perform an annual review of the financial condition and registrations of qualified bidders and require annual audited financial statements to be on file for each company. The City shall annually send a copy of the current Investment Policy to all financial institutions and brokers/dealers approved to do business with the City.

If the City uses an external investment adviser, the adviser is authorized to enter into transactions with its own approved Broker -Dealer list on behalf of the City. The adviser shall perform all due diligence for all brokers/dealers on its approved list. The external investment adviser shall annually provide the City its approved Broker-Dealer list so that the Director of Finance/Treasurer may conduct their own review.

As far as possible, all money belonging to, or in the custody of, a local agency, including money paid to the City’s Director of Finance/Treasurer or other official to pay the principal, interest, or penalties of bonds, shall be deposited for safekeeping in state or national banks, savings associations, federal associations, credit unions, or federally insured industrial loan companies in this state selected by the City’s Director of Finance/Treasurer; or may be invested in the investments set forth in Section 9.0. To be eligible to receive local agency money, a bank, savings association, federal association, or federally insured industrial loan company shall have received an overall rating of not Item 1E - Page 9

CITY OF PALM SPRINGS

INVESTMENT POLICY AND GUIDELINES

6 less than “satisfactory” in its most recent evaluation by the appropriate federal financial supervisory agency of its record of meeting the credit needs of California’s communities, including low- and moderate-income neighborhoods.

To provide for the optimum yield in the investment of City funds, the City’s investment procedures shall encourage competitive bidding on transactions from approved brokers/dealers. In order to be approved by the City, the dealer must meet the following criteria: (i) the dealer must be a “primary” dealer or regional dealer that qualifies under Securities and Exchange Commission Rule 15C3- 1 (Uniform Net Capital Rule); (ii) the dealer’s institution must have an office in California; (iii) the dealer must be experienced in institutional trading practices and familiar with the California Government Code as related to investments appropriate for the City; and (iv) all other applicable criteria, as may be established in the investment procedures. All brokers/dealers and financial institutions who desire to become qualified bidders for investment transactions must submit a “Broker/Dealer Application” and related documents relative to eligibility including a current audited annual financial statement, U4 form for the broker, proof of state registration and proof of National Association of Securities Dealers certification. The City’s Director of Finance/Treasurer shall have also have received a signed Certification from the firm of having read and understood the City’s Investment Policy and agreeing to comply with the Investment Policy. The City’s Director of Finance/Treasurer shall determine if they are adequately capitalized (i.e. qualifies under SEC Rule 15C3- 1, Uniform Net Capital Rule and five years of operation). If the City uses an external investment advisor, the investment adviser will use the firm’s best execution procedures, and must retain documentation of competitive pricing execution on each transaction and provide such documentation to the Director of Finance/Treasurer upon request.

9.0 Cash and Investment Instruments:

City active and inactive deposits may be kept in checking accounts and savings accounts at financial institutions as identified in California State Government Code Section 53648 provided that they are adequately secured with proper collateral as prescribed by Government Code Sections 53656 and/or 53658. Funds may be automatically swept from the above accounts into investment instruments provided those investment instruments are allowable investments as listed in this section, and limited to the percentage of the portfolio prescribed for each investment instrument.

Allowable investments for the portfolio of the City of Palm Springs are limited by California State Government Code Sections 53601 et seq.; and Section 53635. They are further restricted by the Director of Finance/Treasurer’s investment strategy. Limitations on percentage of portfolio, single issue or issuer, credit quality, diversification, and maturity apply at the time of purchase. Purchased securities may not exceed five-year maturities.

Exceptions can only be approved by the City Council. The investment instruments and Item 1E - Page 10

CITY OF PALM SPRINGS

INVESTMENT POLICY AND GUIDELINES

7 percentage of the portfolio permitted by this policy are described below. Investments not specifically listed below are deemed inappropriate and prohibited.

OBLIGATIONS OF THE UNITED STATES TREASURY
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.
• Maximum Maturity: 5 Years
• Maximum Percentage of Portfolio: 100%

BONDS ISSUED BY THE CITY OR ANY LOCAL AGENCY WITHIN THE STATE OF

CALIFORNIA OR THE STATE OF CALIFORNIA
Registered California warrants, 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 California 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. Investments under this section must be rated in a rating category “A” or better by a nationally recognized rating service. • Maximum Percentage of Portfolio: 15%
• Maximum Exposure: 5% per Issuer.

FEDERAL AGENCIES
Obligations issued by banks for cooperatives, federal land banks, federal intermediate credit banks, federal home loan banks, the Federal Home Loan Bank Board, Federal Home Loan Mortgage Corporation, Federal Home Loan Bank, Federal Farm Credit Bank, the Tennessee Valley Authority, or in obligations, participations, or other instruments of, or issued by, or fully guaranteed as to principal and interest by, the Federal National Mortgage Association; or in guaranteed portions of Small Business Administration notes; or in obligations, participations, or other instruments of, or issued by, a federal agency or United States government-sponsored enterprise.
• Maximum Maturity: 5 Years
• Maximum Percentage of Portfolio: 60%
• M aximum percent of callable agency securities in the portfolio will be 20%.

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8 BANKERS’ ACCEPTANCES
Bills of exchange or time drafts drawn on and accepted by a commercial bank, typically created from a letter of credit issued in a foreign trade transaction. Eligibility is limited to U.S. banking corporations.
• Maximum Maturity: 180 Days
• Maximum Percentage of Portfolio: 20%
• Maximum Exposure: 5% per bank
• Credit Requirement: A-1, P-1, F-1 (Per S&P/ Moody’s /Fitch)

COMMERCIAL PAPER
Commercial Paper ranked A-1, P-1, F-1 by one of the major rating agencies and issued by a domestic corporation having assets in excess of $500,000,000 and in a rating category of “A” or better rating on its long term debentures, if any, as determined by a recognized national rating agency.
• Maximum Maturity: 270 Days
• Maximum Percentage of Portfolio: 15% Under a provision sunsetting on January 1, 2026, no more than 40% of the portfolio may be invested in Commercial Paper if the Agency’s investment assets under management are greater than $100,000,000.
• Maximum Exposure: 5% per Issuer
• Credit Requirement A-1, P-1, F-1 (Per S&P/ Moody’s / Fitch)

NEGOTIABLE CERTIFICATES OF DEPOSIT
Negotiable certificates of deposit issued by a nationally or state-chartered bank, a savings association or a federal association, a state or federal credit union, or by a state-licensed branch of a foreign bank. Securities in this category exceeding federal deposit insurance limits shall be rated or issued by institutions which have long-term debt obligations rated in rating category of “A” (or the equivalent) or better and short -term debt obligations, if any, rated “A -1” (or the equivalent) or better by at least two nationally recognized statistical rating agencies.
• Maximum Maturity: 5 Years
• Maximum Percentage of Portfolio: 30%
• Maximum Exposure: 5% per Issuer
• FDIC-insured up to $250,000
• Credit Requirement if over $250,000: Rating of “A” or the equivalent (Per S&P/ Moody’s / Fitch)
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9 MEDIUM-TERM CORPORATE NOTES
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 subsection must be rated in a rating category “A” or better by a nationally recognized rating service at the time of purchase.
• Maximum Maturity: 5 Years
• Maximum Percentage of Portfolio: 30%
• Maximum Exposure: 5% per Issuer

PASS-THROUGH SECURITIES
Asset-Backed, Mortgage-Backed, Mortgage Pass-Through Securities, and Collateralized Mortgage Obligations from issuers not defined as Obligations of the United States Treasury or Federal Agencies. The securities are rated in a rating category of “AA” or its equivalent or higher by a NRSRO with a final maturity not exceeding five years. The aggregate investment in mortgage-backed and asset-backed securities described in this section shall not exceed 20% of the portfolio with no more than 5% held in any one issuer that is not a US government agency.

• Maximum Maturity: 5 Years
• Maximum Percentage of Portfolio: 20%
• Maximum Exposure: 5% per Issuer

SUPRANATIONAL SECURITIES
Medium 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 higher by a NRSRO and shall not exceed 30% of the portfolio with no more than 10% invested in any one issuer. • Maximum Maturity: 5 Years
• Maximum Percentage of Portfolio: 30%
• Maximum Exposure: 10% per Issuer

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10 MUTUAL FUNDS AND MONEY MARKET MUTUAL FUNDS
California Government Code Sections 53601 (k) permits public agencies to invest 20% of their portfolio in mutual funds or money market. Money market funds are limited to a maximum dollar-weighted average maturity of 90 days; each investment must have a remaining maturity of thirteen months or less at time of purchase; and the fund must strive to maintain a constant net asset value of $1.00. These restrictions are designed to protect assets from a loss in value that can result from substantial increases in interest rates.

The California Government Code Section 53601 (k) (2) permits public agencies to invest in “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.) as long as 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 les s than two nationally recognized statistical rating organizations or (B) Retained an investment advisor registered or exempt from registration with the Securities and Exchange Commission with no less than five years’ experience investing in the securities and obligations authorized by subdivisions (a) to (j), inclusive, or subdivisions (m) or (n) and with assets under management in excess of five hundred million dollars ($500,000,000).” • Maximum Percentage of Portfolio invested in shares of any one mutual fund: 10% • Maximum Percentage of Portfolio invested in shares of any one Money Market Mutual Fund: 20%

LOCAL GOVERNMENT INVESTMENT POOLS

The California Government Code Section 53601 (p) permits public agencies to invest in “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 (o), 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; (2) The adviser has not less than five years of experience investing in the securities and obligations authorized in subdivisions (a) to (o), inclusive; and (3) The adviser has assets under management in excess of five hundred million dollars ($500,000,000).” • Maximum Percentage of Portfolio in LGIPs: 20%
TIME DEPOSITS-CERTIFICATES OF DEPOSIT (non-negotiable certificates of deposit.) Item 1E - Page 14

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11 Time deposits, non- negotiable and collateralized in accordance with the California Government Code, may be purchased through banks or savings and loan associations with a rating category of “A” or better rating.
• Maximum Maturity: 5 Year
• Maximum Percentage of Portfolio: 20%
• Maximum Exposure: Limited to the maximum covered under federal insurance NEGOTIABLE CERTIFICATES OF DEPOSIT (NCDs)
NCDs issued by a nationally or state-chartered bank, a savings association or a federal association, a state or federal credit union, or by a federally licensed or state-licensed branch of a foreign bank may be purchased. Investments under this subdivision shall be rated in a rating category of “A” or its equivalent or higher by a NRSRO and shall not exceed 30% of the portfolio with no more than 5% invested in any one issuer. • Maximum Maturity: 5 Year
• Maximum Percentage of Portfolio: 30%
• Maximum Exposure: 5% per issuer

PLACEMENT SERVICE DEPOSITS
Investment in this subdivision shall be no more than 30% of the total portfolio in combination with Certificates of Deposit, including CDARS. Under a provision sunsetting on January 1, 20262031, no more than 50% of the portfolio may be invested in deposits through a placement service, including Certificates of Deposit, if the Agency is a city, district or local agency that does not pool money with other local agencies. • Maximum Maturity: 5 Year
• Maximum Percentage of Portfolio: 3050%

COLLATERALIZED BANK DEPOSITS
City deposits with financial institutions will be collateralized with pledged securities per California Government Code, Section 53651. There are no limits on the dollar amount or percentage that the City may invest in collateralized bank deposits.

REPURCHASE AGREEMENTS
Repurchase Agreements collateralized with securities authorized under California Government Code, maintained at a level of at least 102% of the market value of the Repurchase Agreement. There are no limits on the dollar amount or percentage that the City m ay invest, provided that the securities used as collateral for Repurchase Agreements will be delivered to an acceptable third- party custodian. Repurchase Commented [AS1]: AB 2618, effective 01/01/2025.

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12 Agreements are subject to a Master Repurchase Agreement between the City and the provider of the repurchase agreement. The Master Repurchase Agreement will be substantially in the form developed by the Securities Industry and Financial Markets Association (SIFMA).
• Maximum Maturity: Does not exceed 1 Year

THE LOCAL AGENCY INVESTMENT FUND (LAIF)
A pooled investment fund managed by the State Treasurer’s Office, which operates like a money market fund for the exclusive benefit of governmental entities within California. • Maximum of Portfolio: Maximum set by LAIF

JOINT POWERS AUTHORITY (JPA)
A JPA is organized pursuant to California Government Code Section 6509.7 and 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 JPA. The JPA shall retain an investment advisor who is registered with the SEC (or exempt from registration), has assets under management in excess of $500 million, and has at least five years’ experience investing in instruments authorized by Section 53601, subdivisions (a) to (q).

9.1 Bond Proceeds
In addition to the investment vehicles enumerated in Section 9.0, the proceeds of bond issues (including reserve funds) may be invested in long term Guaranteed Investment Contracts (GIC), Investment Agreements (IA), or other Structured Products (SP) that comply with the Permitted Investment restrictions of the particular bond issue.

Before soliciting bids from providers of GIC's, IA's, or SP’s, the Director of Finance/Treasurer shall obtain approval from the City Council to proceed.

9.2 Investment Pools:

The City’s Director of Finance/Treasurer or designee shall be required to investigate all local government investment pools and money market mutual funds prior to investing and performing an annual review thereafter while the City is invested in the pool or the money market fund. LAIF is authorized under provisions in Section 16429.1 of the California Government Code as an allowable investment for local agencies even though some of the individual investments of the pool are not allowed as a direct investment by a local agency.

9.3 Prohibited Investments:

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13 Under the provisions of California Government Code Sections 53601.6 and 53631.5, the City of Palm Springs shall not invest any funds covered by this Investment Policy in inverse floaters, dual index, stepped inverse derivatives, reverse repurchase agreements, range notes, interest-only strips derived from mortgage pools, stock in any joint company, corporation or association; securities with a forward settlement date exceeding 45 days; or any investment that may result in a zero interest accrual if held to maturity. Under a provision sunsetting on January 1, 2026, securities backed by the U.S. Government that could result in a zero- or negative-interest accrual if held to maturity are permitted. Trading securities for the sole purpose of speculating on the future direction of interest rates is prohibited.

9.4 Social Responsibility:

The City shall not knowingly make any investments in any institution, company, corporation, subsidiary, or affiliate that practices or supports directly or indirectly through its actions, discrimination on the basis of race, religion, color, creed, national or ethnic origin, age, sex, sexual orientation, or physical disability, as this is not in accordance with the City of Palm Springs policies regarding discrimination.

Investments are encouraged in entities that support community well -being through safe and environmentally sound practices and fair labor practices. Investments are encouraged in entities that support equality of rights regarding race, religion, color, creed, national or ethnic origin, age, sex, sexual orientation, or physical disability. Investments should be made to the extent reasonable under the circumstances that such socially responsible investments meet minimum permitted requirements by state law, and achieve substantially equivalent safety, liquidity, and yield when compared to similar investments permitted by state law.

Prior to making investments the City’s Director of Finance/Treasurer’s office will reasonably verify an entity’s support of the socially responsible goals listed above through direct contact or through the use of a third party resource.

10.0 Collateralization:

Certificates of Deposit (CDs)
The City shall require any commercial bank or savings and loan association to deposit eligible securities with an agency of a depository approved by the State Banking Department to secure any uninsured portion of a Non-Negotiable Certificate of Deposit.

The value of eligible securities as defined pursuant to California Government Code, Section 53651, pledged against a Certificate of Deposit shall be equal to 150% of the face value of the CD if the securities are classified as mortgages and 110% of the face value of the CD for all other classes of security.

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14 Collateralization of Bank Deposits
This is the process by which a bank or financial institution pledges securities, or other deposits for the purpose of securing repayment of deposited funds. The City shall require any bank or financial institution to comply with the collateralization criteria defined in California Government Code, Section 53651.

Repurchase Agreements
The City requires that Repurchase Agreements be collateralized only by securities authorized in accordance with California Government Code. The securities which collateralize the repurchase agreement shall be priced at Market Value, including any Accrued Interest plus a margin. The Market Value of the securities that underlie a repurchase agreement shall be valued at 102% or greater of the funds borrowed against those securities. Financial institutions shall mark the value of the collateral to market at least mont hly and increase or decrease the collateral to satisfy the ratio requirement described above. The City shall receive monthly statements of collateral

11.0 Safekeeping and Custody:

All City investments shall identify the City of Palm Springs as the registered owner, and all interest and principal payments and withdrawals shall indicate the City of Palm Springs as the payee. All securities shall be safe kept with the City itself or with a qualified financial institution, contracted by the City as a third party. All agreements and statements will be subject to review annually by external auditors in conjunction with their audit. In the event that the City has a financial institution hold the securities, a separate custodial agreement shall be required. All securities shall be acquired by the safekeeping institution on a “Delivery-Vs-Payment” (DVP) basis.

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

12.0 Investment Pools/Mutual Funds
The City shall conduct a thorough investigation of any pool or mutual fund prior to making an investment, and on a continual basis thereafter. Annually, the Director of Finance/Treasurer shall seek responses to the following questions from any investment pool or mutual fund in which the City invests:
• A description of eligible investment securities, and a written statement of investment policy and objectives.

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15 • A description of interest calculations and how it is distributed, and how gains and losses are treated.
• A description of how the securities are safeguarded (including the settlement processes), and how often the securities are priced and the program audited. • A description of who may invest in the program, how often, what size deposit and withdrawal are allowed.
• A schedule for receiving statements and portfolio listings. • Are reserves, retained earnings, etc. utilized by the pool/fund? • A fee schedule, and when and how it is assessed.
• Is the pool/fund eligible for bond proceeds and/or will it accept such proceeds?

13.0 Risk Management and Diversification

Mitigating Credit Risk in the Portfolio
Credit risk is the risk that a security or a portfolio will lose some or all its value due to a real or perceived change in the ability of the issuer to repay its debt. The City will mitigate credit risk by adopting the following strategies:
• The diversification requirements included in the “Authorized Investments” section of this policy are designed to mitigate credit risk in the portfolio.

• No more than 5% of the total portfolio may be deposited with or invested in securities issued by any single issuer unless otherwise specified in this policy.

• The City may elect to sell a security prior to its maturity and record a capital gain or loss in order to manage the quality, liquidity or yield of the portfolio in response to market conditions or City’s risk preferences.

• If a security owned by the City is downgraded to a level below the requirements of this policy, making the security ineligible for additional purchases, the Director of Finance/Treasurer will use discretion in determining whether to sell or hold the security based on its current maturity, the economic outlook for the issuer, and other relevant factors. If a decision is made to retain a downgraded security in the portfolio, its presence in the portfolio will be monitored and reported monthly to the City Council.

• If a security is downgraded by any NRSRO (Moody’s, S&P or Fitch) below the rating category of “BBB”, it must be sold and removed from the City’s Portfolio unless the City Council approves the Director of Finance/Treasurer’s recommendation that the security should be retained. Director of Finance/Treasurer will monitor and report status of such security to City Council on each quarterly report prepared pursuant to Section 18.0 Item 1E - Page 19

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

The City further recognizes that certain types of securities, including variable rate securities, securities with principal paydowns prior to maturity, and securities with embedded options, will affect the market risk profile of the portfolio differently in different interest rate environments. The City, therefore, adopts the following strategies to control and mitigate its exposure to market risk:
• The City will maintain a minimum of six months of budgeted operating expenditures in short term investments to provide sufficient liquidity for expected disbursements.

• The maximum stated final maturity of individual securities in the portfolio will be five (5) years, except as otherwise stated in this policy.

• The duration of the portfolio will generally be approximately equal to the duration (typically, plus or minus 20%) of a Market Benchmark, an index selected by the City based on the City’s investment objectives, constraints and risk tolerances.

14.0 Maximum Maturities:

To the extent possible, the City will attempt to match its investments with anticipated cash flow requirements. Unless matched to a specific cash flow, the City will not directly invest in securities maturing more than five (5) years from settlement date, unless, the City Council has granted express authority to make that investment either specifically, or as a part of an investment program approved by the City Council. I ndividual maturities are subject to the limitations described in Section 9.0.

15.0 Internal Control:

The Director of Finance/Treasurer shall establish a system of internal controls designed to prevent loss of public funds due to fraud, employee error, and misrepresentation by Item 1E - Page 20

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17 third parties, or unanticipated market changes. No investment personnel may engage in an investment transaction except as provided for under the terms of this Investment Policy and the procedure established by the Director of Finance/Treasurer.

The external auditors shall annually review the investments with respect to the Investment Policy. This review will provide internal control by assuring compliance with policies and procedures for the investments that are selected for testing. Additional ly, account reconciliation and verification of general ledger balances relating to the purchasing or maturing of investments and allocation of investments to fund balances shall be performed by the Finance Department and approved by the Director of Finance/Treasurer.

To provide further protection of City funds, wiring of any City funds is prohibited without the authorization of one of the following designated City staff:

1. Director of Finance/Treasurer

2. Assistant Director of Finance

3. Assistant City Manager

4. City Manager

16.0 Performance Standards:

This Investment Policy shall be reviewed at least annually by the Director of Finance/Treasurer to ensure its consistency with the overall objective of preservation of principal, liquidity, and return, and its relevance to current law and financial and economic trends. All financial assets of all other funds shall be administered in accordance with the provisions of this Investment Policy.

16.1 Market Yield (Benchmark):

The investment portfolio shall be managed to attain a market -average rate of return throughout budgetary and economic cycles, taking into account the City’s investment risk constraints and cash flow. Investment return becomes a consideration only after t he basic requirements of investment safety and liquidity have been met. The Finance Director/Treasurer shall establish an appropriate benchmark or benchmarks, as appropriate, for investment parameters that reflect the types and maturities of investments allowed under this policy. While the City will not make investments for the purpose of trading or speculation as the dominant criterion, the Director of Finance/Treasurer shall seek to enhance total portfolio return by means of ongoing portfolio and cash management. The prohibition of highly speculative investments precludes pursuit of gain or profit through unusual risk and precludes investments primarily directed at gains or profits from conjectural fluctuations in market prices. The Director of Finance/Treasurer will not directly pursue any investments that are leveraged Item 1E - Page 21

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18 or deemed derivative in nature. However, as long as the original investments can be justified by their ordinary earning power, trading in response to changes in market value can be used as part of on-going portfolio management.

17.0 Oversight Committee:

A committee comprised of two Council members appointed by Council, the City Manager and the Director of Finance/Treasurer, shall provide oversight of the City's investments.

The Committee shall meet quarterly to review the City’s investment activity.

18.0 Reporting:

MONTHLY REPORTS
Monthly transaction reports will be submitted by the Director of Finance/Treasury to the City Council in accordance with California Government Code Section 53607.

QUARTERLY REPORTS
The Director of Finance/Treasury will submit a quarterly investment report to the City Council which provides full disclosure of the City’s investment activities within 45 days after the end of the quarter. These reports will disclose, at a minimum, the following information about the City’s portfolio:
• An asset listing showing par value, cost and independent third-party fair market value of each security as of the date of the report, the source of the valuation, type of investment, issuer, maturity date and interest rate. • Transactions for the period.
• A description of the funds, investments and programs (including lending programs) managed by contracted parties (i.e. LAIF; investment pools, outside money managers and securities lending agents)
• A one-page summary report that shows:
o Average maturity of the portfolio and modified duration of the portfolio;
o Maturity distribution of the portfolio;
o Percentage of the portfolio represented by each investment category;
o Average portfolio credit quality; and,
o Time-weighted total rate of return for the portfolio for the prior one month, three months, twelve months and since inception compared to the City’s market benchmark returns for the same periods described in Section 16.1;
• A statement of compliance with investment policy, including a schedule of any transactions or holdings which do not comply with this policy or with the California Government Code, including a justification for their presence in the portfolio and a timetable for resolution.

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19 • A statement that the City has adequate funds to meet its cash flow requirements for the next six months.”

19.0 Investment Policy Adoption:

This Investment Policy shall remain in full force and effect until such time as the City Council amends this policy. The City Manager will submit the Investment Policy to the City Council for review and adoption on an annual basis within 120 days of the end of the fiscal year.

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20 GLOSSARY

AGENCIES: Federal agency securities.

ASKED: The price at which securities are offered. (The price at which a firm will sell a security to an investor.)
ASSET BACKED SECURITIES. Securities supported by pools of installment loans or leases or by pools of revolving lines of credit.

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.

The drafts are drawn on a bank by an exporter or importer to obtain funds to pay for specific merchandise. An acceptance is a high-grade negotiable instrument.

BASIS POINT: One one-hundredth of a percent (i.e., 0.01 %) BID: The price offered by a buyer of securities. (When you are selling securities, you ask for a bid.)
BROKER: A broker brings buyers and sellers together for a commission. He does not take a position.

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.

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

COMMERCIAL PAPER: Short term unsecured promissory note issued by a corporation to raise working capital. These negotiable instruments are purchased at a discount to par value or at par value with interest bearing. Commercial paper is issued by corporations such as General Motors Acceptance Corporation, IBM, Bank of America, etc.

COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR): The official annual financial report for the City. It includes combined statements and basic financial statements for each individual fund and account group prepared in conformity with Generally Accepted Accounting Principles (GAAP).

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21 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. 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 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.

DURATION: A measure of the sensitivity of the price (value of principal) of a fixed-income investment to a change in interest rates over a period of time. Duration is expressed by a number of years. Stagnant or falling interest rates may result in the duration of an investment being shorter than the stated maturity date.

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

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

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

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 HOME LOAN MORTGAGE CORPORATION (FHLMC): Created to promote Item 1E - Page 25

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22 the development of a nationwide secondary market in mortgages. It does this by purchasing residential mortgages from financial institutions insured by an agency of the federal government and selling its interest in them through mortgage backed securities.

The interest and principal payments from the mortgages pass through to the investors either monthly, semiannually or annually.

FEDERAL LAND BANK (FLB): Long-term mortgage credit provided to farmers by Federal Land Banks. These bonds are issued at irregular times for various maturities ranging from a few months to ten years.

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 and Urban Development (HUD). 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 highly liquid and are widely accepted. FNMA assumes and guarantees that all security holders will receive timely payment of principal and interest.

FEDERAL OPEN MARKET COMMITTEE (FOMC): Consists of seven members of the Federal Reserve Board and five of the twelve Federal Reserve Bank Presidents. The President of the New York Federal Reserve Bank is a permanent member, while the other presidents serve on a rotating basis. The committee periodically meets to set Federal Reserve guidelines regarding purchases and sales of Government Securities in the open market as a means of influencing the volume of bank credit and money.

FEDERAL RESERVE SYSTEM: The central bank of the United States created by Congress and consisting of a seven- member Board of Governors in Washington, D.C.; 12 regional banks and about 5,700 commercial banks are members of the system.

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

GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA OR GINNIEMAE):

Securities influencing the volume of bank credit guaranteed by GNMA and issued by mortgage bankers, commercial banks, savings and loan associations and other institutions. Security holder is protected by full faith and credit of the U.S. Government.

Ginnie Mae securities are backed by the FHA or VA mortgages. The term “pass-through” is often used to describe Ginnie Mae securities.

Commented [AS2]: Frequently asked term that requires
clarification.

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23 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 GOVERNMENT INVESTMENT POOL (LGIP): The aggregate of all funds from political subdivisions that are placed in the custody of the State Treasurer for investment and reinvestment.

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

MARKET REPURCHASE AGREEMENT: A written contract covering all future transactions between the parties to repurchase- reverse agreements that establish 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. The investment’s term or remaining maturity is measured from the settlement date to final maturity.

MORTGAGE PASS-THROUGH SECURITIES. A securitized participation in the interest and principal cash flows from a specified pool of mortgages. Principal and interest payments made on the mortgages are passed through to the holder of the security NEGOTIABLE CERTIFICATES OF DEPOSIT: Unsecured obligations of the financial institution, bank or savings and loan, bought at par value with the promise to pay face value plus accrued interest at maturity. They are high- grade negotiable instruments, paying a higher interest rate than regular certificates of deposit.

OFFER: The price asked by a seller of securities. (When you are buying securities, you ask for an offer).

OPEN MARKET OPERATIONS: Purchases and sales of government and certain other securities in the open market by the New York Federal Reserve Bank as directed by the FOMC in order to influence the volume of money and credit in the economy. Purchases inject reserves into the bank system and stimulate growth of money and credit: Sales have the opposite effect. Open market operations are the Federal Reserve’s most important and most flexible monetary Policy tool.

PLACEMENT SERVICE DEPOSITS: A private service that allows local agencies to invest in FDIC- insured deposits with one or more banks, savings and loans, and credit Item 1E - Page 27

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24 unions located in the United States. IntraFi (formerly known as CDARS) is an example of an entity that provides this service.

PORTFOLIO: Collection of securities held by an investor.

PRIMARY DEALER: A group of government securities dealers who 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.

PRUDENT PERSON RULE: An investment standard. In some states, the law requires that a fiduciary, such as a trustee, may invest money only in a list of securities selected by the custody state-the so - called “legal list”. In other states, the trustee may invest in a security if it is one that would be bought by a prudent person of discretion and intelligence who is seeking a reasonable income and preservation of capital.

RATE OF RETURN: The yield obtainable on a security based on its purchase price or its current market price.

REPURCHASE AGREEMENT (RP OR REPO): A holder of securities sells these securities to an investor with an agreement to repurchase them at 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 position. Exception: when the Fed 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 bank’s vaults for protection.

SUPRANATIONALS: Development banks that share the same goal of providing an improved standard of living in their member countries, but each having different mandates. There are three banks (Supranationals) in which California local agencies can invest their debt obligations; the International Bank for Reconstruction and Development (IBRD), International Finance Corporation (IFC) and Inter-American Development Bank.

STUDENT LOAN ASSOCIATION NOTES (SLMA or SALLIE MAE): A U.S. Corporation and instrumentality of the U.S. Government. Through its borrowings, funds are targeted for loans to students in higher education institutions. SLMA securities are highly liquid and are widely accepted.

SMALL BUSINESS ADMINISTRATION (SBA): The portion of these securities which are guaranteed by the Federal government to provide financial assistance through direct Commented [AS3]: Updated in alignment with new
language of CDARs to Placement Service Deposits.

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25 loans and loan guarantees to small businesses. Cash flows from these instruments may not be in equal installments because of prepayments.

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.

SEC RULE 15C3-1: See “Uniform Net Capital Rule”.

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

TENNESSEE VALLEY AUTHORITIES (TVA): A U.S. Corporation created in the 1930s to electrify the Tennessee Valley area; currently a major utility headquartered in Knoxville, Tennessee. TVA securities are highly liquid and are widely accepted.

TREASURY BILLS: A non-interest bearing discount 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 BOND: Long-term U.S. Treasury securities having initial maturities of more than10 years.

TREASURY NOTES: Intermediate-term coupon bearing U.S. Treasury having initial maturities of one year to ten years.

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.

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 yiel d 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.

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ATTACHMENT B

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SUMMARY OF CHANGES TO THE INVESTMENT POLICY PREPARED BY

CHANDLER ASSET MANAGEMENT

In collaboration with the City of Palm Spring’s investment advisor, Chandler Asset Management, finance staff recently reviewed and updated the City’s investment policy to capture recent changes to California Government Code (Code) governance of the investment public The policy was also reviewed to ensure the latest best practices from recognized industry groups such as Government Finance Officers Association (GFOA), California Society of Municipal Finance Officers (CSMFO), and the California Municipal Treasurers Association (CMTA) were included.

Below is a summary of those changes:
• Placement Services Deposit
o Assembly Bill 2618 extended the sunset provision from 2026 to 2031 for up to 50% of the portfolio to be invested in Placement Service Deposits, effective January 1, 2025. o Added Placement Service Deposits to the glossary . in alignment with the updated language from CDARs. Found on Page 23 of Attachment A.

• Joint Powers Authority (JPAs)
o Added to section 9.0 as an Authorized Investment in alignment with CGC 53601(p) – Found on Page 12 of Attachment A.

• Added “Fiduciary” to the glossary as this is a Frequently Asked Question in terms of content in the Investment Policy. Found on Page 22 of Attachment A.

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ATTACHMENT C

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Item 1E - Page 33
City of Palm Springs
Department of Finance and Treasmy
Palm Springs City Hall - P .0. Box 2743, Palm Springs, California 92263-2743 Tel: (760) 323-8246 * Fax (760) 322-8320 * Web: www.palmspringsca.gov April 13, 2021
To: Jayson Schmitt, CFA
Deputy Chief Investment Officer
Chandler Asset Management
6225 Lusk Blvd
San Diego, CA 92121
RE: Client Directive on Management of the City of Palm Spring's Investments The City of Palm Springs, entered into a non-discretionary investment advisory agreement (Agreement) on March 2, 2021 with Chandler Asset Management, an SEC-registered investment advisor. In accordance with the scope of work included in the contract, Chandler will manage a portion of the City's portfolio in a disciplined, active manner that complies with the City's Investment Policy, approved on April 8'h, 2021.

Following detailed consultations with Chandler's investment team, the City selected Chandler to manage the reserve portion of its portfolio in the Short Term Bond investment strategy. The strategy invests in a well­ diversified portfolio of US dollar denominated fixed income securities. In addition, in accordance with the City's investment policy, Chandler will also integrate ESG/SRI preferences (nto the management of the City's portfolio by working with staff to develop, implement and overlay an approved issuer list over its permitted investments.

Performance for the Short-Term Bond investment strategy will be measured against the ICE BofA 1-5 Year US Treasury & Agency Index. Because this is a non-discretionary relationship, Chandler will seek written authorization from an authorized representative of the City defined by the "Authorized Representatives Form" prior to executing trades on the City's behalf. The City's Investment Staff will work with Chandler to maintain appropriate levels of liquidity utilizing an internally managed liquidity portfolio.

This directive will remain in effect until it is replaced by a revised directive.

Ms. ncy P uley
Director of Finance and Treasurer
City of Palm Springs
Post Office Box 2743, Palm Springs, CA 92263-2743

ATTACHMENT D

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CITY COUNCIL STAFF REPORT

DATE: OCTOBER 14, 2021 CONSENT CALENDAR

SUBJECT: SOCIALLY RESPONSIBLE INVESTING (SRI ) AND ENVIRONMENTAL, SOCIAL GOVERNANCE INVESTING (ESG).

FROM: Justin Clifton, City Manager

BY: Department of Finance and Treasury

SUMMARY:

The City Council adopted the City Investment Policy on April 8, 2021. At that time, City Council directed staff to incorporate Socially Responsible Investing (SRI) and Environmental, Social, Governance Investing (ESG) language into the FY21- 22 Investment Policy.

SRI and ESG both consider the broader social and environmental implications of an investment.

• SRI values aligned investing primarily uses an exclusionary screening process to align portfolios with investors moral and ethical values.

• ESG values (performance) based investing primarily uses an inclusive evaluation process. This includes factors into the decision process through targeting positive impact.

RECOMMENDATION:

Receive and File.

BACKGROUND:

The City Council adopted the City Investment Policy on April 8, 2021. At that time, City Council directed staff to incorporate Socially Responsible Investing (SRI) and Environmental, Social, Governance Investing (ESG) language into the FY21- 22 Investment Policy.

A growing number of local agencies in California have received requests from their governing board members to invest in “sustainable,” socially conscious,” “green,” or “ethical” investments. This practice is commonly referred to as socially responsible investing (SRI). In addition, the consideration of environmental, social, and governance Item 1E - Page 35
City Council Staff Report
October 14, 2021 -- Page 2
Socially Responsible Investing

(ESG) criteria when investing public funds is becoming more common amoung local agencies in California. The mo re general terms investors now use are: “sustainable investing,” community investing,” “ethical investing,” “green investing,” impact investing,” “mission-related investing,” “responsible investing,” and “values-based investing”.

The City of Santa Monica’s investment policy has a section “Socially Responsible Investing, which the city is directed to invest city funds in “entities that support clean and healthy environments, including following safe and environmentally sound practices,” entities that support equal rights, and “in entities that promote community economic development.”

Socially responsible investment objectives are becoming increasingly popular and may be advocated for by the stakeholders of California local agencies to discourage or encourage corporate business practices or government activities seen as negative or positive under certain environmental, social and governance factors to the public at large.

The City’s current investment policy includes the following:

9.4 Social Responsibility:

The City shall not knowingly make any investments in any institution, company, corporation, subsidiary, or affiliate that practices or supports directly or indirectly through its actions, discrimination on the basis of race, religion, color, creed, national or ethnic origin, age, sex, sexual orientation, or physical disability, as this is not in accordance with the City of Palm Springs policies regarding discrimination.

Investments are encouraged in entities that support community well -being through safe and environmentally sound practices and fair labor practices. Investments are encouraged in entities that support equality of rights regarding race, religion, color, creed, national or ethnic origin, age, sex, sexual orientation, or physical disability.

Investments should be made to the extent reasonable under the circumstances that such socially responsible investments meet minimum permitted requirements by state law, and achieve substantially equivalent safety, liquidity, and yield when compared to similar investments permitted by state law.

Staff will update the FY21-22 Investment Policy to include best practices such as:

Sustainable, Socially Conscious, Green, and Ethical.

Negative S
creening of SRI & ESG Strategies will include prohibiting:

• Tobacco Products
• Fossil Fuel
• Alcohol
Item 1E - Page 36
City Council Staff Report
October 14, 2021 -- Page 3
Socially Responsible Investing

• Gun/Weapons Manufacturing and Distribution

Positive S creening of SRI & ESG Strategies will include:

• Entities that support clean and healthy environments
• Entities that promote economic development
• Invest in local community banks with ten or less branches for amounts of $250,000 or less.
• Purchasing Green Bonds

Prior to making investments the City’s Director of Finance/Treasurer’s office will reasonably verify an entity’s support of the socially responsible goals listed above through direct contact or using a third-party resource.

STAFF ANALYSIS:

Staff to include additional language to include SRI , ESG, Sustainable, Socially Conscious, Green, and Ethical in FY 21-22 City Investment Policy.

FISCAL IMPACT:

None

REVIEWED B
Y:

Department Director:

Assistant City Manager:

City Manager:

ATTACHMENTS:

None
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ATTACHMENT E

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Palm Springs - ESG Discussion 2025
Company Name Industry Ticker +
Calvert U.S. Large Cap Core
Responsible Index (CISIX)
FTSE USA All Cap Choice
Total Return Index (ESGV)
FTSE 4Good US Select Index
(VFTAX)
MSCI USA Extended ESG
Focus Index (ESGU) Moodys S&P Fitch
APPLE INC Technology AAPL US Equity Yes Yes Yes Yes Yes Aaa AA+ #N/A N/A ABBVIE INC Consumer, Non-cyclical ABBV US Equity Yes Yes Yes Yes Yes A3 A- #N/A N/A ABBOTT LABORATORIES Consumer, Non-cyclical ABT US Equity MSCI Yes Yes Yes No Aa3 AA- WD AMAZON.COM INC Communications AMZN US Equity Yes Yes Yes Yes Yes A1 AA AA- AIR PRODUCTS & CHEMICALS INC Basic Material s APD US Equity Yes Yes Yes Yes Yes A2 A #N/A N/A BANK OF AMERICA CORP Financial BAC US Equity Yes Yes Yes Yes Yes #N/A N/A A- AA- BANK OF NEW YORK MELLON CORP Financial BK US Equity Yes Yes Yes Yes Yes #N/A N/A A AA- BLACKROCK INC Financial BLK US Equity Yes Yes Yes Yes Yes Aa3 AA- #N/A N/A CATERPILLAR INC Industrial CAT US Equity Yes Yes Yes Yes Yes A2 A A+ COLGATE-PALMOLIVE CO Consumer, Non-cyclical CL US Equity MSCI Yes Yes Yes No Aa3 A+ WD COMCAST CORP-CLASS A Communications CMCSA US Equity Yes Yes Yes Yes Yes A3 A- A- CME GROUP INC Financial CME US Equity MSCI Yes Yes Yes No Aa3 AA- AA-u COSTCO WHOLESALE CORP Consumer, Cyclical COST US Equity Yes Yes Yes Yes Yes Aa3 AA WD SALESFORCE INC Technology CRM US Equity Yes Yes Yes Yes Yes A1 A+ #N/A N/A CISCO SYSTEMS INC Communications CSCO US Equity Yes Yes Yes Yes Yes A1 AA- #N/A N/A DEERE & CO Industrial DE US Equity Yes Yes Yes Yes Yes A1 A A+ ALPHABET INC-CL A Communications GOOGL US Equity Yes Yes Yes Yes Yes Aa2 AA+ #N/A N/A GOLDMAN SACHS GROUP INC Financial GS US Equity Yes Yes Yes Yes Yes #N/A N/A BBB+ A HOME DEPOT INC Consumer, Cyclical HD US Equity Yes Yes Yes Yes Yes A2 A A INTEL CORP Technology INTC US Equity Remove Yes Yes Yes Yes Baa1 BBB BBB+ JPMORGAN CHASE & CO Financial JPM US Equity Yes Yes Yes Yes Yes #N/A N/A A AA- KIMBERLY-CLARK CORP Consumer, Non-cyclical KMB US Equity Yes Yes Yes Yes Yes A2 A WD COCA-COLA CO/THE Consumer, Non-cyclical KO US Equity Yes Yes Yes Yes Yes A1 A+ WD LINDE PLC Basic Materials LIN US Equity Yes Yes Yes Yes Yes #N/A N/A A #N/A N/A ELI LILLY & CO Consumer, Non-cyclical LLY US Equity Yes Yes Yes Yes Yes A1 A+ WD MASTERCARD INC - A Financial MA US Equity Yes Yes Yes Yes Yes Aa3 A+ #N/A N/A MERCK & CO. INC. Consumer, Non-cyclical MRK US Equity Yes Yes Yes Yes Yes A1 A+ WD MORGAN STANLEY Financial MS US Equity Yes* No Yes Yes Yes #N/A N/A A- A+ MICROSOFT CORP Technology MSFT US Equity Yes Yes Yes Yes Yes Aaa AAA WD NORTHERN TRUST CORP Financial NTRS US Equity MSCI Yes Yes Yes No #N/A N/A A+ AA- PACCAR INC Consumer, Cyclical PCAR US Equity MSCI Yes Yes Yes No A1 A+ #N/A N/A PEPSICO INC Consumer, Non-cyclical PEP US Equity Yes Yes Yes Yes Yes A1 A+ WD PFIZER INC Consumer, Non-cyclical PFE US Equity Yes Yes Yes Yes Yes A2 A WD PROCTER & GAMBLE CO/THE Consumer, Non-cyclical PG US Equity Yes Yes Yes Yes Yes Aa3 AA- #N/A N/A PROGRESSIVE CORP Financial PGR US Equity Yes Yes Yes Yes Yes A2 A A+ PROLOGIS INC Financial PLD US Equity Yes Yes Yes Yes Yes Baa1 A WD PNC FINANCIAL SERVICES GROUP Financial PNC US Equity Yes Yes Yes Yes Yes #N/A N/A A- A+ SCHWAB (CHARLES) CORP Financial SCHW US Equity Yes Yes Yes Yes Yes A2 A- A STATE STREET CORP Financial STT US Equity MSCI Yes Yes Yes No #N/A N/A A AA- TRUIST FINANCIAL CORP Financial TFC US Equity Yes Yes Yes Yes Yes #N/A N/A A- A TARGET CORP Consumer, Cyclical TG T US Equity Yes Yes Yes Yes Yes A2 A A UNITEDHEALTH GROUP INC Consumer, Non-cyclical UNH US Equity Yes Yes Yes Yes Yes A2 A+ A UNION PACIFIC CORP Industrial UNP US Equity Yes Yes Yes Yes Yes A3 A- A- UNITED PARCEL SERVICE-CL B Industrial UPS US Equity Yes Yes Yes Yes Yes A2 A #N/A N/A US BANCORP Financial USB US Equity Yes Yes Yes Yes Yes #N/A N/A A A+ VISA INC-CLASS A SHARES Financial V US Equity Yes Yes Yes Yes Yes Aa3 AA- #N/A N/A 1 Item 1E - Page 39
--------~------------------------

I I I I I I

I I I I I I

ATTACHMENT F

Item 1E - Page 40

CITY OF PALM SPRINGS
2025-2026

INVESTMENT POLICY

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CITY OF PALM SPRINGS

INVESTMENT POLICY AND GUIDELINES

2 1.0 Purpose:

The purpose of this Investment Policy (Policy) is to set forth the investment and operational guidelines for the management and investment of the public funds of the City of Palm Springs, California. The Policy requires adoption by, and can only be changed by, a majority vote of the City Council.

The Policy is designed to ensure the prudent management of public funds, the availability of operating and capital funds when needed, and an investment total return that is comparable to established benchmarks, as appropriate.

A copy of this statement will be provided to all investment dealers and investment managers doing business with the City of Palm Springs, and will be provided to other interested parties on request. Receipt of this policy, including confirmation that it has been reviewed by individuals working directly with the City’s investment account will be received prior to any organization providing investment services to the City of Palm Springs.

2.0 Policy:

The investment Policy and practices of the City of Palm Springs are based upon state law and prudent money management consistent with City policies. The primary goals of these practices are:

A. To ensure compliance with all Federal, State, and local laws governing the investment of public funds under the control of the Director of Finance/Treasurer.

B. To protect the principal of monies entrusted to the City’s Finance Department.

C. Achieve a reasonable rate of return within the parameters of prudent risk management while minimizing the potential for capital losses arising from market changes or issuer default.

3.0 Scope:

This Investment Policy applies to all financial assets of the City of Palm Springs. These funds are accounted for in the City’s Comprehensive Annual Financial Report.

The Director of Finance/Treasurer is responsible for investing the unexpended cash in the City Treasury for all funds, except for the employee’s retirement funds or deferred compensation accounts, which are administered separately, and those funds which ar e managed separately by trustees appointed under indenture agreements.

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3 These funds include, but are not limited to:
• General Fund
• Special Revenue Funds
• Capital Project Funds
• Debt Service Fund
• Enterprise Funds
• Internal Service Funds
• Trust and Agency Funds
• Bond Proceeds
• Any new fund created by the legislative body, unless specifically exempted This Investment Policy applies to all transactions involving the financial assets and related activity of the foregoing funds.

4.0 Prudence:

The standard of prudence to be used by the Director of Finance/Treasurer shall be the “prudent investor standard.” This shall be applied in the context of managing an overall portfolio. The “prudent investor standard” shall be applied to the City, pursuant to California Government Code Section 53600.3 which provides, in pertinent part:
“ … 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 genera l 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.…”

4.1 Personal Responsibility:

The Director of Finance/Treasurer, as the investment officer acting in accordance with written procedures and the Investment Policy and exercising due diligence, shall be relieved of personal responsibility for an individual security’s credit risk or market price changes, provided deviations from expectations are reported to the City Council in a timely fashion and appropriate action is taken to control adverse developments.

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4 5.0 Objective:

Consistent with this aim, investments are made under the terms and conditions of California Government Code Section 53600, et seq. Criteria for selecting investments and the absolute order of priority are:

Safety
Safety of principal is the foremost objective of the investment program. Investments of the City of Palm Springs shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. To attain this objective, diversification is required in order that potential losses on individual securities do not exceed the income generated from the remainder of the portfolio.

Liquidity
The City of Palm Springs’s investment portfolio will remain sufficiently liquid to enable the City to meet all operating requirements which might be reasonably anticipated and to maintain compliance with any indenture agreement, as applicable. Liquidity is essential to the safety of principal.

Return on Investments
The City of Palm Springs’s investment portfolio shall be designed with the objective of attaining a market -average rate of return throughout budgetary and economic cycles (market interest rates), within the City’s Investment Policy’s risk parameters and the City’s cash flow needs. See also Section 16.1.

6.0 Delegation of Authority:

The Director of Finance/Treasurer shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate officials. The responsibility for the day-to-day investment of City funds may be delegated to other Department of Finance staff members as determined by the Director of Finance/Treasurer.

Procedures should include references to: ACH/wire transfer agreements, and collateral/depository agreements, as appropriate. Such procedures shall include explicit delegation of authority to persons responsible for investment transactions. No person may engage in an investment transaction except as provided under the terms of this policy and the procedures established by the Director of Finance/Treasurer. The Director of Finance/Treasurer shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate officials. Under the provisions of California Government Code 53600.3, the Director of Finance/Treasurer is a trustee Item 1E - Page 44

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5 and a fiduciary subject to the prudent investor standard.

The City may engage the services of one or more external investment managers to assist in the management of the City’s investment portfolio in a manner consistent with the City’s Investment Policy and objectives. Such external managers may be granted discretion to purchase and sell investment securities in accordance with this Investment Policy. Such managers must be registered under the Investment Advisers Act of 1940.

7.0 Ethics and Conflicts of Interest:

Consistent with state statutes and regulations and the City’s local policies relating to conflicts of interest, all persons involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the investment program, or which could impair their ability to make impartial investment decisions.

Employees and investment officers are required to file annual disclosure statements as required for “public officials who manage public investments” [as defined and required by the Political Reform Act and related regulations, including Government Code Sections 81000, et seq., and the rules, regulations and guidelines promulgated by California’s Fair Political Practices Commission (FPPC)].

8.0 Authorized Financial Dealers and Institutions:

The City’s Director of Finance/Treasurer will maintain a list of the financial institutions and brokers/dealers authorized to provide investment and depository services and will perform an annual review of the financial condition and registrations of qualified bidders and require annual audited financial statements to be on file for each company. The City shall annually send a copy of the current Investment Policy to all financial institutions and brokers/dealers approved to do business with the City.

If the City uses an external investment adviser, the adviser is authorized to enter into transactions with its own approved Broker -Dealer list on behalf of the City. The adviser shall perform all due diligence for all brokers/dealers on its approved list. The external investment adviser shall annually provide the City its approved Broker-Dealer list so that the Director of Finance/Treasurer may conduct their own review.

As far as possible, all money belonging to, or in the custody of, a local agency, including money paid to the City’s Director of Finance/Treasurer or other official to pay the principal, interest, or penalties of bonds, shall be deposited for safekeeping in state or national banks, savings associations, federal associations, credit unions, or federally insured industrial loan companies in this state selected by the City’s Director of Finance/Treasurer; or may be invested in the investments set forth in Section 9.0. To be eligible to receive local agency money, a bank, savings association, federal association, or federally insured industrial loan company shall have received an overall rating of not Item 1E - Page 45

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6 less than “satisfactory” in its most recent evaluation by the appropriate federal financial supervisory agency of its record of meeting the credit needs of California’s communities, including low- and moderate-income neighborhoods.

To provide for the optimum yield in the investment of City funds, the City’s investment procedures shall encourage competitive bidding on transactions from approved brokers/dealers. In order to be approved by the City, the dealer must meet the following criteria: (i) the dealer must be a “primary” dealer or regional dealer that qualifies under Securities and Exchange Commission Rule 15C3- 1 (Uniform Net Capital Rule); (ii) the dealer’s institution must have an office in California; (iii) the dealer must be experienced in institutional trading practices and familiar with the California Government Code as related to investments appropriate for the City; and (iv) all other applicable criteria, as may be established in the investment procedures. All brokers/dealers and financial institutions who desire to become qualified bidders for investment transactions must submit a “Broker/Dealer Application” and related documents relative to eligibility including a current audited annual financial statement, U4 form for the broker, proof of state registration and proof of National Association of Securities Dealers certification. The City’s Director of Finance/Treasurer shall have also have received a signed Certification from the firm of having read and understood the City’s Investment Policy and agreeing to comply with the Investment Policy. The City’s Director of Finance/Treasurer shall determine if they are adequately capitalized (i.e. qualifies under SEC Rule 15C3- 1, Uniform Net Capital Rule and five years of operation). If the City uses an external investment advisor, the investment adviser will use the firm’s best execution procedures, and must retain documentation of competitive pricing execution on each transaction and provide such documentation to the Director of Finance/Treasurer upon request.

9.0 Cash and Investment Instruments:

City active and inactive deposits may be kept in checking accounts and savings accounts at financial institutions as identified in California State Government Code Section 53648 provided that they are adequately secured with proper collateral as prescribed by Government Code Sections 53656 and/or 53658. Funds may be automatically swept from the above accounts into investment instruments provided those investment instruments are allowable investments as listed in this section, and limited to the percentage of the portfolio prescribed for each investment instrument.

Allowable investments for the portfolio of the City of Palm Springs are limited by California State Government Code Sections 53601 et seq.; and Section 53635. They are further restricted by the Director of Finance/Treasurer’s investment strategy. Limitations on percentage of portfolio, single issue or issuer, credit quality, diversification, and maturity apply at the time of purchase. Purchased securities may not exceed five-year maturities.

Exceptions can only be approved by the City Council. The investment instruments and Item 1E - Page 46

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7 percentage of the portfolio permitted by this policy are described below. Investments not specifically listed below are deemed inappropriate and prohibited.

OBLIGATIONS OF THE UNITED STATES TREASURY
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.
• Maximum Maturity: 5 Years
• Maximum Percentage of Portfolio: 100%

BONDS ISSUED BY THE CITY OR ANY LOCAL AGENCY WITHIN THE STATE OF

CALIFORNIA OR THE STATE OF CALIFORNIA
Registered California warrants, 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 California 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. Investments under this section must be rated in a rating category “A” or better by a nationally recognized rating service. • Maximum Percentage of Portfolio: 15%
• Maximum Exposure: 5% per Issuer.

FEDERAL AGENCIES
Obligations issued by banks for cooperatives, federal land banks, federal intermediate credit banks, federal home loan banks, the Federal Home Loan Bank Board, Federal Home Loan Mortgage Corporation, Federal Home Loan Bank, Federal Farm Credit Bank, the Tennessee Valley Authority, or in obligations, participations, or other instruments of, or issued by, or fully guaranteed as to principal and interest by, the Federal National Mortgage Association; or in guaranteed portions of Small Business Administration notes; or in obligations, participations, or other instruments of, or issued by, a federal agency or United States government-sponsored enterprise.
• Maximum Maturity: 5 Years
• Maximum Percentage of Portfolio: 60%
• M aximum percent of callable agency securities in the portfolio will be 20%.

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8 BANKERS’ ACCEPTANCES
Bills of exchange or time drafts drawn on and accepted by a commercial bank, typically created from a letter of credit issued in a foreign trade transaction. Eligibility is limited to U.S. banking corporations.
• Maximum Maturity: 180 Days
• Maximum Percentage of Portfolio: 20%
• Maximum Exposure: 5% per bank
• Credit Requirement: A-1, P-1, F-1 (Per S&P/ Moody’s /Fitch)

COMMERCIAL PAPER
Commercial Paper ranked A-1, P-1, F-1 by one of the major rating agencies and issued by a domestic corporation having assets in excess of $500,000,000 and in a rating category of “A” or better rating on its long term debentures, if any, as determined by a recognized national rating agency.
• Maximum Maturity: 270 Days
• Maximum Percentage of Portfolio: 15% Under a provision sunsetting on January 1, 2026, no more than 40% of the portfolio may be invested in Commercial Paper if the Agency’s investment assets under management are greater than $100,000,000.
• Maximum Exposure: 5% per Issuer
• Credit Requirement A-1, P-1, F-1 (Per S&P/ Moody’s / Fitch)

NEGOTIABLE CERTIFICATES OF DEPOSIT
Negotiable certificates of deposit issued by a nationally or state-chartered bank, a savings association or a federal association, a state or federal credit union, or by a state-licensed branch of a foreign bank. Securities in this category exceeding federal deposit insurance limits shall be rated or issued by institutions which have long-term debt obligations rated in rating category of “A” (or the equivalent) or better and short -term debt obligations, if any, rated “A -1” (or the equivalent) or better by at least two nationally recognized statistical rating agencies.
• Maximum Maturity: 5 Years
• Maximum Percentage of Portfolio: 30%
• Maximum Exposure: 5% per Issuer
• FDIC-insured up to $250,000
• Credit Requirement if over $250,000: Rating of “A” or the equivalent (Per S&P/ Moody’s / Fitch)
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9 MEDIUM-TERM CORPORATE NOTES
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 subsection must be rated in a rating category “A” or better by a nationally recognized rating service at the time of purchase.
• Maximum Maturity: 5 Years
• Maximum Percentage of Portfolio: 30%
• Maximum Exposure: 5% per Issuer

PASS-THROUGH SECURITIES
Asset-Backed, Mortgage-Backed, Mortgage Pass-Through Securities, and Collateralized Mortgage Obligations from issuers not defined as Obligations of the United States Treasury or Federal Agencies. The securities are rated in a rating category of “AA” or its equivalent or higher by a NRSRO with a final maturity not exceeding five years. The aggregate investment in mortgage-backed and asset-backed securities described in this section shall not exceed 20% of the portfolio with no more than 5% held in any one issuer that is not a US government agency.

• Maximum Maturity: 5 Years
• Maximum Percentage of Portfolio: 20%
• Maximum Exposure: 5% per Issuer

SUPRANATIONAL SECURITIES
Medium 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 higher by a NRSRO and shall not exceed 30% of the portfolio with no more than 10% invested in any one issuer. • Maximum Maturity: 5 Years
• Maximum Percentage of Portfolio: 30%
• Maximum Exposure: 10% per Issuer

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10 MUTUAL FUNDS AND MONEY MARKET MUTUAL FUNDS
California Government Code Sections 53601 (k) permits public agencies to invest 20% of their portfolio in mutual funds or money market. Money market funds are limited to a maximum dollar-weighted average maturity of 90 days; each investment must have a remaining maturity of thirteen months or less at time of purchase; and the fund must strive to maintain a constant net asset value of $1.00. These restrictions are designed to protect assets from a loss in value that can result from substantial increases in interest rates.

The California Government Code Section 53601 (k) (2) permits public agencies to invest in “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.) as long as 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 les s than two nationally recognized statistical rating organizations or (B) Retained an investment advisor registered or exempt from registration with the Securities and Exchange Commission with no less than five years’ experience investing in the securities and obligations authorized by subdivisions (a) to (j), inclusive, or subdivisions (m) or (n) and with assets under management in excess of five hundred million dollars ($500,000,000).” • Maximum Percentage of Portfolio invested in shares of any one mutual fund: 10% • Maximum Percentage of Portfolio invested in shares of any one Money Market Mutual Fund: 20%

LOCAL GOVERNMENT INVESTMENT POOLS

The California Government Code Section 53601 (p) permits public agencies to invest in “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 (o), 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; (2) The adviser has not less than five years of experience investing in the securities and obligations authorized in subdivisions (a) to (o), inclusive; and (3) The adviser has assets under management in excess of five hundred million dollars ($500,000,000).” • Maximum Percentage of Portfolio in LGIPs: 20%
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11 Time deposits, non- negotiable and collateralized in accordance with the California Government Code, may be purchased through banks or savings and loan associations with a rating category of “A” or better rating.
• Maximum Maturity: 5 Year
• Maximum Percentage of Portfolio: 20%
• Maximum Exposure: Limited to the maximum covered under federal insurance NEGOTIABLE CERTIFICATES OF DEPOSIT (NCDs)
NCDs issued by a nationally or state-chartered bank, a savings association or a federal association, a state or federal credit union, or by a federally licensed or state-licensed branch of a foreign bank may be purchased. Investments under this subdivision shall be rated in a rating category of “A” or its equivalent or higher by a NRSRO and shall not exceed 30% of the portfolio with no more than 5% invested in any one issuer. • Maximum Maturity: 5 Year
• Maximum Percentage of Portfolio: 30%
• Maximum Exposure: 5% per issuer

PLACEMENT SERVICE DEPOSITS
Investment in this subdivision shall be no more than 30% of the total portfolio in combination with Certificates of Deposit, including CDARS. Under a provision sunsetting on January 1, 2031, no more than 50% of the portfolio may be invested in deposits through a placement service, including Certificates of Deposit, if the Agency is a city, district or local agency that does not pool money with other local agencies. • Maximum Maturity: 5 Year
• Maximum Percentage of Portfolio: 50%

COLLATERALIZED BANK DEPOSITS
City deposits with financial institutions will be collateralized with pledged securities per California Government Code, Section 53651. There are no limits on the dollar amount or percentage that the City may invest in collateralized bank deposits.

REPURCHASE AGREEMENTS
Repurchase Agreements collateralized with securities authorized under California Government Code, maintained at a level of at least 102% of the market value of the Repurchase Agreement. There are no limits on the dollar amount or percentage that the City may invest, provided that the securities used as collateral for Repurchase Agreements will be delivered to an acceptable third- party custodian. Repurchase Item 1E - Page 51

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12 Agreements are subject to a Master Repurchase Agreement between the City and the provider of the repurchase agreement. The Master Repurchase Agreement will be substantially in the form developed by the Securities Industry and Financial Markets Association (SIFMA).
• Maximum Maturity: Does not exceed 1 Year

THE LOCAL AGENCY INVESTMENT FUND (LAIF)
A pooled investment fund managed by the State Treasurer’s Office, which operates like a money market fund for the exclusive benefit of governmental entities within California. • Maximum of Portfolio: Maximum set by LAIF

JOINT POWERS AUTHORITY (JPA)
A JPA is organized pursuant to California Government Code Section 6509.7 and 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 JPA. The JPA shall retain an investment advisor who is registered with the SEC (or exempt from registration), has assets under management in excess of $500 million, and has at least five years’ experience investing in instruments authorized by Section 53601, subdivisions (a) to (q).

9.1 Bond Proceeds
In addition to the investment vehicles enumerated in Section 9.0, the proceeds of bond issues (including reserve funds) may be invested in long term Guaranteed Investment Contracts (GIC), Investment Agreements (IA), or other Structured Products (SP) that comply with the Permitted Investment restrictions of the particular bond issue.

Before soliciting bids from providers of GIC's, IA's, or SP’s, the Director of Finance/Treasurer shall obtain approval from the City Council to proceed.

9.2 Investment Pools:

The City’s Director of Finance/Treasurer or designee shall be required to investigate all local government investment pools and money market mutual funds prior to investing and performing an annual review thereafter while the City is invested in the pool or the money market fund. LAIF is authorized under provisions in Section 16429.1 of the California Government Code as an allowable investment for local agencies even though some of the individual investments of the pool are not allowed as a direct investment by a local agency.

9.3 Prohibited Investments:

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13 Under the provisions of California Government Code Sections 53601.6 and 53631.5, the City of Palm Springs shall not invest any funds covered by this Investment Policy in inverse floaters, dual index, stepped inverse derivatives, reverse repurchase agreements, range notes, interest-only strips derived from mortgage pools, stock in any joint company, corporation or association; securities with a forward settlement date exceeding 45 days; or any investment that may result in a zero interest accrual if held to maturity. Under a provision sunsetting on January 1, 2026, securities backed by the U.S. Government that could result in a zero- or negative-interest accrual if held to maturity are permitted. Trading securities for the sole purpose of speculating on the future direction of interest rates is prohibited.

9.4 Social Responsibility:

The City shall not knowingly make any investments in any institution, company, corporation, subsidiary, or affiliate that practices or supports directly or indirectly through its actions, discrimination on the basis of race, religion, color, creed, national or ethnic origin, age, sex, sexual orientation, or physical disability, as this is not in accordance with the City of Palm Springs policies regarding discrimination.

Investments are encouraged in entities that support community well -being through safe and environmentally sound practices and fair labor practices. Investments are encouraged in entities that support equality of rights regarding race, religion, color, creed, national or ethnic origin, age, sex, sexual orientation, or physical disability. Investments should be made to the extent reasonable under the circumstances that such socially responsible investments meet minimum permitted requirements by state law, and achieve substantially equivalent safety, liquidity, and yield when compared to similar investments permitted by state law.

Prior to making investments the City’s Director of Finance/Treasurer’s office will reasonably verify an entity’s support of the socially responsible goals listed above through direct contact or through the use of a third party resource.

10.0 Collateralization:

Certificates of Deposit (CDs)
The City shall require any commercial bank or savings and loan association to deposit eligible securities with an agency of a depository approved by the State Banking Department to secure any uninsured portion of a Non-Negotiable Certificate of Deposit.

The value of eligible securities as defined pursuant to California Government Code, Section 53651, pledged against a Certificate of Deposit shall be equal to 150% of the face value of the CD if the securities are classified as mortgages and 110% of the face value of the CD for all other classes of security.

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14 Collateralization of Bank Deposits
This is the process by which a bank or financial institution pledges securities, or other deposits for the purpose of securing repayment of deposited funds. The City shall require any bank or financial institution to comply with the collateralization criteria defined in California Government Code, Section 53651.

Repurchase Agreements
The City requires that Repurchase Agreements be collateralized only by securities authorized in accordance with California Government Code. The securities which collateralize the repurchase agreement shall be priced at Market Value, including any Accrued Interest plus a margin. The Market Value of the securities that underlie a repurchase agreement shall be valued at 102% or greater of the funds borrowed against those securities. Financial institutions shall mark the value of the collateral to market at least monthly and increase or decrease the collateral to satisfy the ratio requirement described above. The City shall receive monthly statements of collateral

11.0 Safekeeping and Custody:

All City investments shall identify the City of Palm Springs as the registered owner, and all interest and principal payments and withdrawals shall indicate the City of Palm Springs as the payee. All securities shall be safe kept with the City itself or with a qualified financial institution, contracted by the City as a third party. All agreements and statements will be subject to review annually by external auditors in conjunction with their audit. In the event that the City has a financial institution hold the securities, a separate custodial agreement shall be required. All securities shall be acquired by the safekeeping institution on a “Delivery-Vs-Payment” (DVP) basis.

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

12.0 Investment Pools/Mutual Funds
The City shall conduct a thorough investigation of any pool or mutual fund prior to making an investment, and on a continual basis thereafter. Annually, the Director of Finance/Treasurer shall seek responses to the following questions from any investment pool or mutual fund in which the City invests:
• A description of eligible investment securities, and a written statement of investment policy and objectives.

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15 • A description of interest calculations and how it is distributed, and how gains and losses are treated.
• A description of how the securities are safeguarded (including the settlement processes), and how often the securities are priced and the program audited. • A description of who may invest in the program, how often, what size deposit and withdrawal are allowed.
• A schedule for receiving statements and portfolio listings. • Are reserves, retained earnings, etc. utilized by the pool/fund? • A fee schedule, and when and how it is assessed.
• Is the pool/fund eligible for bond proceeds and/or will it accept such proceeds?

13.0 Risk Management and Diversification

Mitigating Credit Risk in the Portfolio
Credit risk is the risk that a security or a portfolio will lose some or all its value due to a real or perceived change in the ability of the issuer to repay its debt. The City will mitigate credit risk by adopting the following strategies:
• The diversification requirements included in the “Authorized Investments” section of this policy are designed to mitigate credit risk in the portfolio.

• No more than 5% of the total portfolio may be deposited with or invested in securities issued by any single issuer unless otherwise specified in this policy.

• The City may elect to sell a security prior to its maturity and record a capital gain or loss in order to manage the quality, liquidity or yield of the portfolio in response to market conditions or City’s risk preferences.

• If a security owned by the City is downgraded to a level below the requirements of this policy, making the security ineligible for additional purchases, the Director of Finance/Treasurer will use discretion in determining whether to sell or hold the security based on its current maturity, the economic outlook for the issuer, and other relevant factors. If a decision is made to retain a downgraded security in the portfolio, its presence in the portfolio will be monitored and reported monthly to the City Council.

• If a security is downgraded by any NRSRO (Moody’s, S&P or Fitch) below the rating category of “BBB”, it must be sold and removed from the City’s Portfolio unless the City Council approves the Director of Finance/Treasurer’s recommendation that the security should be retained. Director of Finance/Treasurer will monitor and report status of such security to City Council on each quarterly report prepared pursuant to Section 18.0 Item 1E - Page 55

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

The City further recognizes that certain types of securities, including variable rate securities, securities with principal paydowns prior to maturity, and securities with embedded options, will affect the market risk profile of the portfolio differently in different interest rate environments. The City, therefore, adopts the following strategies to control and mitigate its exposure to market risk:
• The City will maintain a minimum of six months of budgeted operating expenditures in short term investments to provide sufficient liquidity for expected disbursements.

• The maximum stated final maturity of individual securities in the portfolio will be five (5) years, except as otherwise stated in this policy.

• The duration of the portfolio will generally be approximately equal to the duration (typically, plus or minus 20%) of a Market Benchmark, an index selected by the City based on the City’s investment objectives, constraints and risk tolerances.

14.0 Maximum Maturities:

To the extent possible, the City will attempt to match its investments with anticipated cash flow requirements. Unless matched to a specific cash flow, the City will not directly invest in securities maturing more than five (5) years from settlement date, unless, the City Council has granted express authority to make that investment either specifically, or as a part of an investment program approved by the City Council. I ndividual maturities are subject to the limitations described in Section 9.0.

15.0 Internal Control:

The Director of Finance/Treasurer shall establish a system of internal controls designed to prevent loss of public funds due to fraud, employee error, and misrepresentation by Item 1E - Page 56

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17 third parties, or unanticipated market changes. No investment personnel may engage in an investment transaction except as provided for under the terms of this Investment Policy and the procedure established by the Director of Finance/Treasurer.

The external auditors shall annually review the investments with respect to the Investment Policy. This review will provide internal control by assuring compliance with policies and procedures for the investments that are selected for testing. Additional ly, account reconciliation and verification of general ledger balances relating to the purchasing or maturing of investments and allocation of investments to fund balances shall be performed by the Finance Department and approved by the Director of Finance/Treasurer.

To provide further protection of City funds, wiring of any City funds is prohibited without the authorization of one of the following designated City staff:

1. Director of Finance/Treasurer

2. Assistant Director of Finance

3. Assistant City Manager

4. City Manager

16.0 Performance Standards:

This Investment Policy shall be reviewed at least annually by the Director of Finance/Treasurer to ensure its consistency with the overall objective of preservation of principal, liquidity, and return, and its relevance to current law and financial and economic trends. All financial assets of all other funds shall be administered in accordance with the provisions of this Investment Policy.

16.1 Market Yield (Benchmark):

The investment portfolio shall be managed to attain a market -average rate of return throughout budgetary and economic cycles, taking into account the City’s investment risk constraints and cash flow. Investment return becomes a consideration only after t he basic requirements of investment safety and liquidity have been met. The Finance Director/Treasurer shall establish an appropriate benchmark or benchmarks, as appropriate, for investment parameters that reflect the types and maturities of investments allowed under this policy. While the City will not make investments for the purpose of trading or speculation as the dominant criterion, the Director of Finance/Treasurer shall seek to enhance total portfolio return by means of ongoing portfolio and cash management. The prohibition of highly speculative investments precludes pursuit of gain or profit through unusual risk and precludes investments primarily directed at gains or profits from conjectural fluctuations in market prices. The Director of Finance/Treasurer will not directly pursue any investments that are leveraged Item 1E - Page 57

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18 or deemed derivative in nature. However, as long as the original investments can be justified by their ordinary earning power, trading in response to changes in market value can be used as part of on-going portfolio management.

17.0 Oversight Committee:

A committee comprised of two Council members appointed by Council, the City Manager and the Director of Finance/Treasurer, shall provide oversight of the City's investments.

The Committee shall meet quarterly to review the City’s investment activity.

18.0 Reporting:

MONTHLY REPORTS
Monthly transaction reports will be submitted by the Director of Finance/Treasury to the City Council in accordance with California Government Code Section 53607.

QUARTERLY REPORTS
The Director of Finance/Treasury will submit a quarterly investment report to the City Council which provides full disclosure of the City’s investment activities within 45 days after the end of the quarter. These reports will disclose, at a minimum, the following information about the City’s portfolio:
• An asset listing showing par value, cost and independent third-party fair market value of each security as of the date of the report, the source of the valuation, type of investment, issuer, maturity date and interest rate. • Transactions for the period.
• A description of the funds, investments and programs (including lending programs) managed by contracted parties (i.e. LAIF; investment pools, outside money managers and securities lending agents)
• A one-page summary report that shows:
o Average maturity of the portfolio and modified duration of the portfolio;
o Maturity distribution of the portfolio;
o Percentage of the portfolio represented by each investment category;
o Average portfolio credit quality; and,
o Time-weighted total rate of return for the portfolio for the prior one month, three months, twelve months and since inception compared to the City’s market benchmark returns for the same periods described in Section 16.1;
• A statement of compliance with investment policy, including a schedule of any transactions or holdings which do not comply with this policy or with the California Government Code, including a justification for their presence in the portfolio and a timetable for resolution.

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19 • A statement that the City has adequate funds to meet its cash flow requirements for the next six months.”

19.0 Investment Policy Adoption:

This Investment Policy shall remain in full force and effect until such time as the City Council amends this policy. The City Manager will submit the Investment Policy to the City Council for review and adoption on an annual basis within 120 days of the end of the fiscal year.

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20 GLOSSARY

AGENCIES: Federal agency securities.

ASKED: The price at which securities are offered. (The price at which a firm will sell a security to an investor.)
ASSET BACKED SECURITIES. Securities supported by pools of installment loans or leases or by pools of revolving lines of credit.

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.

The drafts are drawn on a bank by an exporter or importer to obtain funds to pay for specific merchandise. An acceptance is a high-grade negotiable instrument.

BASIS POINT: One one-hundredth of a percent (i.e., 0.01 %) BID: The price offered by a buyer of securities. (When you are selling securities, you ask for a bid.)
BROKER: A broker brings buyers and sellers together for a commission. He does not take a position.

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.

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

COMMERCIAL PAPER: Short term unsecured promissory note issued by a corporation to raise working capital. These negotiable instruments are purchased at a discount to par value or at par value with interest bearing. Commercial paper is issued by corporations such as General Motors Acceptance Corporation, IBM, Bank of America, etc.

COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR): The official annual financial report for the City. It includes combined statements and basic financial statements for each individual fund and account group prepared in conformity with Generally Accepted Accounting Principles (GAAP).

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21 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. 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 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.

DURATION: A measure of the sensitivity of the price (value of principal) of a fixed-income investment to a change in interest rates over a period of time. Duration is expressed by a number of years. Stagnant or falling interest rates may result in the duration of an investment being shorter than the stated maturity date.

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

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

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

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 HOME LOAN MORTGAGE CORPORATION (FHLMC): Created to promote Item 1E - Page 61

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22 the development of a nationwide secondary market in mortgages. It does this by purchasing residential mortgages from financial institutions insured by an agency of the federal government and selling its interest in them through mortgage backed securities.

The interest and principal payments from the mortgages pass through to the investors either monthly, semiannually or annually.

FEDERAL LAND BANK (FLB): Long-term mortgage credit provided to farmers by Federal Land Banks. These bonds are issued at irregular times for various maturities ranging from a few months to ten years.

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 and Urban Development (HUD). 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 highly liquid and are widely accepted. FNMA assumes and guarantees that all security holders will receive timely payment of principal and interest.

FEDERAL OPEN MARKET COMMITTEE (FOMC): Consists of seven members of the Federal Reserve Board and five of the twelve Federal Reserve Bank Presidents. The President of the New York Federal Reserve Bank is a permanent member, while the other presidents serve on a rotating basis. The committee periodically meets to set Federal Reserve guidelines regarding purchases and sales of Government Securities in the open market as a means of influencing the volume of bank credit and money.

FEDERAL RESERVE SYSTEM: The central bank of the United States created by Congress and consisting of a seven- member Board of Governors in Washington, D.C.; 12 regional banks and about 5,700 commercial banks are members of the system.

FIDUCIARY:

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

GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA OR GINNIEMAE):

Securities influencing the volume of bank credit guaranteed by GNMA and issued by mortgage bankers, commercial banks, savings and loan associations and other institutions. Security holder is protected by full faith and credit of the U.S. Government.

Ginnie Mae securities are backed by the FHA or VA mortgages. The term “pass-through” is often used to describe Ginnie Mae securities.

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23 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 GOVERNMENT INVESTMENT POOL (LGIP): The aggregate of all funds from political subdivisions that are placed in the custody of the State Treasurer for investment and reinvestment.

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

MARKET REPURCHASE AGREEMENT: A written contract covering all future transactions between the parties to repurchase- reverse agreements that establish 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. The investment’s term or remaining maturity is measured from the settlement date to final maturity.

MORTGAGE PASS-THROUGH SECURITIES. A securitized participation in the interest and principal cash flows from a specified pool of mortgages. Principal and interest payments made on the mortgages are passed through to the holder of the security NEGOTIABLE CERTIFICATES OF DEPOSIT: Unsecured obligations of the financial institution, bank or savings and loan, bought at par value with the promise to pay face value plus accrued interest at maturity. They are high- grade negotiable instruments, paying a higher interest rate than regular certificates of deposit.

OFFER: The price asked by a seller of securities. (When you are buying securities, you ask for an offer).

OPEN MARKET OPERATIONS: Purchases and sales of government and certain other securities in the open market by the New York Federal Reserve Bank as directed by the FOMC in order to influence the volume of money and credit in the economy. Purchases inject reserves into the bank system and stimulate growth of money and credit: Sales have the opposite effect. Open market operations are the Federal Reserve’s most important and most flexible monetary Policy tool.

PLACEMENT SERVICE DEPOSITS: A private service that allows local agencies to invest in FDIC- insured deposits with one or more banks, savings and loans, and credit Item 1E - Page 63

CITY OF PALM SPRINGS

INVESTMENT POLICY AND GUIDELINES

24 unions located in the United States. IntraFi (formerly known as CDARS) is an example of an entity that provides this service.

PORTFOLIO: Collection of securities held by an investor.

PRIMARY DEALER: A group of government securities dealers who 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.

PRUDENT PERSON RULE: An investment standard. In some states, the law requires that a fiduciary, such as a trustee, may invest money only in a list of securities selected by the custody state-the so - called “legal list”. In other states, the trustee may invest in a security if it is one that would be bought by a prudent person of discretion and intelligence who is seeking a reasonable income and preservation of capital.

RATE OF RETURN: The yield obtainable on a security based on its purchase price or its current market price.

REPURCHASE AGREEMENT (RP OR REPO): A holder of securities sells these securities to an investor with an agreement to repurchase them at 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 position. Exception: when the Fed 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 bank’s vaults for protection.

SUPRANATIONALS: Development banks that share the same goal of providing an improved standard of living in their member countries, but each having different mandates. There are three banks (Supranationals) in which California local agencies can invest their debt obligations; the International Bank for Reconstruction and Development (IBRD), International Finance Corporation (IFC) and Inter-American Development Bank.

STUDENT LOAN ASSOCIATION NOTES (SLMA or SALLIE MAE): A U.S. Corporation and instrumentality of the U.S. Government. Through its borrowings, funds are targeted for loans to students in higher education institutions. SLMA securities are highly liquid and are widely accepted.

SMALL BUSINESS ADMINISTRATION (SBA): The portion of these securities which are guaranteed by the Federal government to provide financial assistance through direct Item 1E - Page 64

CITY OF PALM SPRINGS

INVESTMENT POLICY AND GUIDELINES

25 loans and loan guarantees to small businesses. Cash flows from these instruments may not be in equal installments because of prepayments.

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.

SEC RULE 15C3-1: See “Uniform Net Capital Rule”.

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

TENNESSEE VALLEY AUTHORITIES (TVA): A U.S. Corporation created in the 1930s to electrify the Tennessee Valley area; currently a major utility headquartered in Knoxville, Tennessee. TVA securities are highly liquid and are widely accepted.

TREASURY BILLS: A non-interest bearing discount 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 BOND: Long-term U.S. Treasury securities having initial maturities of more than10 years.

TREASURY NOTES: Intermediate-term coupon bearing U.S. Treasury having initial maturities of one year to ten years.

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.

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 yiel d 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.

Item 1E - Page 65

ATTACHMENT G

Item 1E - Page 66
RESOLUTION NO. _____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

PALM SPRINGS , CALIFORNIA, ADOPTING AN

INVESTMENT POLICY GOVERNING THE INVESTMENT

OF CITY
FUNDS FOR FISCAL YEAR 2025-26
AND SUPERSEDING RESOLUTION NO. 25200.

WHER
EAS, The City Council finds the Investment Policy is consistent with the City’s commitment to safeguarding public funds; and
WHEREAS, The City of Palm Springs Investment Policy, Attachment F and incorporated by reference, is hereby adopted; and
WHEREAS, Resolution No. 25200 is hereby superseded in its entirety.

PASSED, APPROVED AND ADOPTED BY THE PALM SPRINGS CITY COUNCIL THIS ____ DAY OF MAY, 2025.

Sco tt C. Stiles, City Manager
ATTEST:

Brenda Pree, City Clerk
Item 1E - Page 67
Resolution No. _____

CERTIFICATION

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.

CITY OF PALM SPRINGS )

I, BRENDA PREE , C ity Clerk of the City of Palm Springs, h ereby certify that Resolution No. ____ is a full, true and correct copy, and was duly adopted at a regular meeting of the City Council of the City of Palm Springs on _______________________, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

IN WITNESS WHEREOF , I have hereunto set my hand and affixed the official seal of the City of Palm Springs, California, this ______ day of May, 2025.

Brenda Pree, MMC, CERA
City Clerk
Item 1E - Page 68

CITY COUNCIL STAFF REPORT
05/14/2025
SUBJECT:

RESOLUTION ADOPTING THE 2025 EMERGENCY OPERATIONS PLAN FOR THE

CITY OF PALM SPRINGS
RECOMMENDATION:

Adopt a resolution entitled, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, ADOPTING THE 2025 PALM SPRINGS EMERGENCY OPERATIONS PLAN.”
Attachments
Item 1F

CITY COUNCIL STAFF REPORT

DATE: M AY 14, 2025 CONSENT CALENDAR

SUBJECT: RESOLUTION ADOPTING THE 2025 EMERGENCY OPERATIONS PLAN

FOR THE CITY OF PALM SPRINGS

FROM: Scott C. Stiles, City Manager

BY: Daniel DeSelms, Emergency Management Coordinator

SUMMARY:

This is a request for the City Council to pass a resolution adopting the 2025 City of Palm Springs Emergency Operations Plan (EOP). The City’s EOP addresses the City’s planned response to emergencies associated with natural disasters, technological incidents, or other emergencies that are beyond the scope of day -to-day police and f ire department responses. The City’s EOP meets the guidelines as set forth in AB 2140 in the Emergency Services Act.

RECOMMENDATION:

Adopt a resolution entitled, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, ADOPTING THE 2025 PALM SPRINGS EMERGENCY OPERATIONS PLAN.”

BACKGROUND:

The California Emergency Services Act, amended 2021, provides the basic authorities for conducting emergency operations following a proclamation of a Local Emergency, State of Emergency, or State of War Emergency by the Governor and/or appropriate local authorities. The California Emergency Services Act requires all local governments to manage disasters using Standardized Emergency Management System (SEMS) and Incident Command System (ICS).

The State of California Emergency Plan (SEP), which is promulgated by the Governor, is published in accordance with the Emergency Services Act and describes the functions and operations of government at all levels during extraordinary emergencies, including acts of war. The Emergency Services Act states that the plan is “in effect at all times and applies to all levels of state government and its political subdivisions.” Local Emergency Plans are considered extensions of the State Emergency Plan with detail s given to the Item 1F - Page 1
City Council Staff Report
May 14, 2025 -- Page 2
2025 Emergency Operations Plan

local area. One of the requirements is for local municipalities to have an Emergency Operations Plan (EOP). The City’s last revision to the EOP was in 2012.

STAFF ANALYSIS:

The City’s Emergency Management Coordinator compiled this revision of the 2012 EOP.

The final draft of the plan was submitted to the Riverside County Emergency Management Department (EMD) and the California Office of Emergency Services (Cal OES) for review and was approved in January 2025, contingent on the adoption by the Palm Springs City Council and concurrence by all appropriate City Departments.

The EOP does not address day -to-day emergencies, or the well -established operating procedures used in handling such emergencies. The EOP and its operational concepts focus on potential large- scale disasters that can generate unique situations that require unusual emergency response and support.

The EOP is a preparedness document and not step-by-step instructions that is designed to be read, understood, and exercised prior to a state of emergency. The City’s Emergency Management Coordinator, in coordination with principal staff, has the responsibility to ensure that emergency plans are in place and that the City of Palm Springs is prepared to respond to large-scale emergencies. The EOP will be available in English and Spanish and will be posted on the City’s website for access.

ENVIRONMENTAL ASSESSMENT
:

The proposed action is exempt from environmental review requirements of the California Environmental Quality Act (“CEQA”) pursuant to Section 15061(b)(3) of Title 14 of the California Code of Regulations, as there is no possibility that the adoption of the 202 5 Emergency Operations Plan will have any effect on the environment.

ALIGNMENT WITH STRATEGIC PLANNING:

This item aligns with City Council Strategic Plan Broad Goal of Public Safety and Community Services.

FISCAL IMPACT:

The request to adopt the 2025 Emergency Operations Plan will not have any fiscal impact to the City of Palm Springs. Non-adoption could result in loss of available state and federal funding and/or reimbursement for emergency and disaster management.

REVIEWED BY:

Department Director: Paul Alvarado
City Manager: Scott Stiles
Item 1F - Page 2
City Council Staff Report
May 14, 2025 -- Page 3
2025 Emergency Operations Plan

ATTACHMENTS:

A. Resolution
B. 2025 Emergency Operations Plan
C. Palm Springs Animal Shelter Operations 2025

Item 1F - Page 3

ATTACHMENT A

Item 1F - Page 4
RESOLUTION NO. _____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
PALM SPRINGS, CALIFORNIA, ADOPTING THE 20 25

EMERGENCY OPERATION PLAN FOR THE CITY OF
PALM SPRINGS.

THE CITY COUNCIL OF THE CITY OF PALM SPRINGS DOES HEREBY RESOLVE AS FOLLOWS:

SECTION 1. The 2025 Emergency Operation Plan (EOP) for the City of Palm Springs, attached as Exhibit A and incorporated herein, is hereby approved and adopted.

SECTION 2. The 2025 EOP meets the requirements of the Emergency Services Act and Standardized Emergency Management System and is consistent with state and federal guidelines.

SECTION 3. The 2012 Emergency Operations Plan for the City of Palm Springs is hereby superseded, and no longer in force or effect.

PASSED, APPROVED AND ADOPTED BY THE PALM SPRINGS CITY
COUNCIL THIS 14
th DAY OF MAY 2025.

SCOTT STILES

CITY MANAGER

ATTEST:

BRENDA PREE

CITY CLERK
Item 1F - Page 5
Resolution No. _____