Palo Alto City Council
August 8, 2022

There is no fiscal impact associated with this item.

ATTACHMENTS:
• Attachment8.a: 2022 Annual Conference Voting Delegate Alternate Form (PDF) 8 Packet Pg. 128

8.a
Packet Pg. 129

8.a
Packet Pg. 130

8.a
Packet Pg. 131

8.a
Packet Pg. 132

City of Palo Alto (ID # 13998)
City Council Staff Report

Meeting Date: 8/8/2022 Report Type: Information Reports

City of Palo Alto Page 1

Title: Investment Activity Report for the Fourth Quarter, Fiscal Year 2022 From: City Manager
Lead Department: Administrative Services

Background
The City’s Investment Policy requires that staff report to Council quarterly on the City’s portfolio composition and performance compared to the Council -adopted policy; discuss overall compliance with the City’s Inve stment Policy; and provide recommendations, if any, for policy changes. In addition, staff provides a detailed list of all securities and report on the City’s ability to meet expenditure requirements over the next six months. This report is to inform Council of the City’s investment portfolio performance as of the fourth quarter ending June 30, 2022 and to disclose staff’s cash flow projections for the next six months. The report includes a discussion of the sale of investments prior to maturity, which occu rred in July 2022 to meet higher than expected cash flow needs and resulted in a small principal gain of $3,519.

Discussion
The City’s investment portfolio is summarized in Graph 1 and detailed in the Investments by Fund Report (Attachment B). The Inves tments by Fund Report groups the portfolio’s securities by investment type and includes details of the investment issuer, date of maturity, current market value, the book and face (par) value, and the weighted average maturity of each type of investment and of the entire portfolio.

9 Packet Pg. 133

City of Palo Alto Page 2

The par value of the City’s portfolio is $584.7 million; in comparison, last quarter it was $575.9 million. The $8.8 million portfolio growth since the last quarter results from expected and typical timing of cash flows. Co ntributing factors include the continued rebound of the local economy, second year of pandemic federal aid of $6.9 million, and property tax receipts including Excess ERAF (Educational Revenue Augmentation Funds) totaling $27.7 million. These sources are partially offset by an extra pay period cost in the fourth quarter compared to the third quarter and restoration of some City services.

The portfolio consists of $46.6 million in liquid accounts and $538.1 million in various investment types as detailed in the following Table 1. The investment policy requires that at least $50 million be maintained in securities maturing in less than two years. The portfolio includes $107.5 million in investments maturing in less than two years, comprising 18.4 percent of the City’s investment portfolio. In addition, the Investment Policy allows up to 30 percent of the portfolio to be invested in securities with maturities beyond five years; actual at the end of the second quarter is 28.0 percent of the portfolio.

9 Packet Pg. 134

City of Palo Alto Page 3

The current market value of the portfolio is 93.5 percent of the book value. The market value of securities fluctuates, depending on how interest rates perform. When interest rates decrease, the market value of the securities in the City’s portfolio will like ly increase; likewise, when interest rates increase, the market value of the securities will likely decrease.

Understanding and showing market values is not only a reporting requirement, but essential to knowing the principal risks in actively buying and selling securities. It is important to note, however, that the City’s practice is to buy and hold investments until they mature so changes in market price do not affect the City’s investment principal. As a result, there’s no risk of principal loss due to the declining market value. The market valuation is provided by U.S. Bank, which is the City’s safekeeping agent. The average life to maturity of the investment portfolio is

3.85 years compared to 4.12 years last quarter.

The Investment Policy states “ Should the ratio of the market value of the portfolio to the book value of the portfolio fall below 95 percent, the Administrative Services Department will report this fact to the City Council within a reasonable time frame and evaluate whether there is an y risk of holding any of the securities to maturity.” At the end of the fourth quarter, the market value of the City’s investment portfolio fell to 93.5 percent. I nterest rates are expected to further increase causing market value of the portfolio to fluctuate. A key investment objective in the City’s Investment Policy is safety, where investments are undertaken in a manner to ensure the preservation of capital in the overall investment portfolio. This guided the City’s practice is to buy and hold investmen ts to mature; this minimizes the investment risk in this fluctuating market. As of writing of this report (last week of July 2022) , market value was 97.2 percent.

Investments Made During the Fourth Quarter
During the fourth quarter, $12.8 million of secu rities with an average yield of 2.1 percent matured. During the same period, per the following Table 2, securities totaling $3.9 million 9 Packet Pg. 135

City of Palo Alto Page 4

with an average yield of 3.0 percent were purchased. As expected, as interest rates slowly rose on new investments, th e City’s portfolio’s average yield plateaued in this and the prior few quarters and the portfolio’s average yield is expected to eventually rise due to higher yielding new investments. In the prior two fiscal years or during the height of the COVID -19 economic closures, the portfolio’s interest rate had steadily declined. The City’s short -term money market and pool account increased by $17.7 million compared to the third quarter of Fiscal Year 2022.

Staff continually monitors the City’s short -term cash flow needs and adjusts liquid funds to meet them.

Availability of Funds for the Next Six Months
Typically, the flow of revenues from the City’s utility billings and General Fund sources is enough to provide funds for ongoing expenditures in those respecti ve funds. Projections indicate that for the City’s cashflow, an overall decline in the portfolio of $34.1 million is expected over the coming six months due to routine business needs. This reflects expected receipts of $290.7 million and expenditures of $324.8 million over the next six months.

The expected decline in the portfolio is attributable to pre -paying a portion of the Fiscal Year 2023 Public Employers’ Retirement System’s (PERS) employer contribution of $43.1 million, representing the City’s unfunded accrued liability (UAL) lump-sum prepayment for FY 2023. This has occurred for the past five years with this payment being the sixth. By prepaying PERS instead of making payments with each payroll period, the City is expected to save $1.5 million in pension expense; the savings will be offset by the loss of approximately $0.8 million in interest income in the City’s investment portfolio , resulting in net citywide savings of $0.7 million.

As of June 30, 2022, the City had $46.6 million deposited in the Local Agency Investment Fund (LAIF) and a money market account that could be withdrawn to satisfy daily liquid cash 9 Packet Pg. 136

City of Palo Alto Page 5

requirements. Table 1 cites that investments totaling $122.8 million will mature within 12 months; of that amount, $35.2 million will ma ture between July 1, 2022 and December 31, 2022. Staff expects that the City will have adequate funds to meet expenditure requirements for the next six months.

Sale of Investments Prior to Maturity (July 2022)
As mentioned earlier in this report, a prima ry objective of the City’s Investment Policy is safety with preservation of capital being the approach in the execution of investment activities. The sale of securities is permitted in the Investment Policy (see p. 8) and was authorized by the Director of Administrative Services to maintain required liquid cash for daily City operations.

Staff forecast s both short-term and long -term cash needs and ladders the investments accordingly so there is adequate cash on hand combined with maturing investments to meet the forecasted liquidity needs. In the latter part of the fourth quarter (Q4) of Fiscal Year 2022, due to timing of capital expense and rise in utility commodity costs, there was a need to sell investments prior to maturity to ensure sufficient liquid cash balances for potentially the higher than capital costs in July 2022. As a result, a one -time sale of $10.7 million (par value) in securities was completed in early July 2022 for a net principal gain of $3,519. These security sales provided extra payment flexibility and lowered the July’s liquidity risk. Overall FY 2022 regular warrants (Accounts Payable) and purchase card payments increased by $74.4 million, or

28.9 percent, over the prior year. Going forward staff has adjusted cash projections to consider the higher expenditure levels. As a result, future near-term security sales are not anticipated.

Revenues receipts remain within trend and are expected to keep up with the above higher costs. In addition, investments that are scheduled to mature in August and September are sufficient to maintain the City’s liquid cash requirements. Should the conservative outlook not materialize, these funds can be reinvested in a few months in higher yielding securities since the interest rates on new investments is expected to continue to rise in the coming months and quarters as the federal government increase interest rates to address the elevated inflation rate.

Compliance with City Investment Policy
During the fourth quarter, staff complied with all aspects of the investment policy. Attachment C lists the major restrictions in the City’s investment policy compared w ith the portfolio’s actual performance.

Investment Yields
Interest income on an accrual basis for the fourth quarter was $2.4 million; $0.1 million higher than the prior quarter. As of June 30, 2022, the yield to maturity of the City’s portfolio was 1.62 percent; in the prior quarter it was similar or at 1.61 percent. In the fourth quarter, LAIF’s average yield was 0.69 percent while the average yield on the two -year and five-year Treasury bonds was approximately 2.72 percent and 2.95 percent, respective ly. In comparison, in the 9 Packet Pg. 137

City of Palo Alto Page 6

prior quarter LAIF had 0.29 percent yield and the two -year and five-year Treasury bonds yields were significantly lower at 1.43 percent and 1.81 percent.

Historically, the City’s portfolio yield has outperformed the two -year and five-year Treasury bond rates and did so again starting over two years ago; this is an expected occurrence during economic downturns. However, during economic recovery periods, interest rates rise and the City’s portfolio yield is expected to be lower, as is the current financial environment. As the City’s laddered portfolio investments mature in the next year or two, funds will continue to be reinvested and trends will follow the economic patterns. Graph 2 shows the City’s yields and interest earnings for the past 20 years.

5.88%

5.00%

4.17%

4.54%
City of Palo Alto

2.71%

1.80% 1.93% 1.62%

1.41%

0.81% 0.25%
2 Yr. Treasury

2.72%

4.39%

4.98%

1.10%
5-Yr. Treasury

2.88%

2.47%

0.27%

2.95%

1.44%

5.25%

0.23%
LAIF

0.69%
$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
$3.5
$4.0
$4.5
$5.0

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%

5.0%

5.5%

6.0%
Int. Earnings
(Millions)Yields
Fiscal Year Quarters
Graph 2: Yields and Interest Earnings
City’s portfolio duration is 3.85 years.

Yield Trends
The Federal Open Market Committee (FOMC), after 17 consecutive meetings, since March 2020, has raised the federal funds rate three times totaling 1.50 percent with the first occurring on March 16, 2022. The third occurred on June 15, 2022 with the rate increase being 0.75 percent (1.50 percent to 1.75 percent). Prior to this the rate was near zero. In order to mitigate the persistent elevated inflation rate, the expectation is FOMC will continue to do multiple federal funds rate interest rate increases in the second half of 2022 and 2023. Consistent with the prior quarter, job growth remains “robust” and unemployment rate remains low, however, FOMC’s inflation concern are “reflecting supply and demand imbalances related to the pandemic, higher energy prices, and broader price pressures.” In addition, they state “lockdowns in China are likely to exacerbate supply chain disruptions.” The following Graph 3 9 Packet Pg. 138

City of Palo Alto Page 7

shows the U.S. inflation rate trend for FY 2022. The FOMC’s target rate, ideally, is to bring the inflation rate to around 2 percent.

Graph 3: U.S. Inflation Rate

Funds Held by the City or Managed Under Contract
Attachment A is a consolidated report of all City investment funds, i ncluding those not held directly in the investment portfolio. These include cash in the City’s regular bank account with US Bank and Wells Fargo. A description of the City’s banking relationships can be found in City Council Staff Report ID # 7858 and ID # 11402 . The bond pro ceeds, reserves, and debt service payments being held by the City’s fiscal agents are subject to the requirements of the underlying debt indenture. The trustees for the bond funds are U.S. Bank and California Asset Management Program (CAMP). Bond funds wi th U.S. Bank are invested in federal agency and money market mutual funds that consist exclusively of U.S. Treasury securities. Bond funds in CAMP are invested in banker’s acceptance notes, certificates of deposit, commercial paper, federal agency securiti es, and repurchase agreements. The most recent data on funds held by the fiscal agent is as of June 30, 2022.

In January 2017, the City established a Section 115 Irrevocable Trust (Public Agencies Post - Employment Benefits Trust) administered by Public Age ncy Retirement Services (PARS). This fund is not governed by the City’s Investment Policy; however, it is discussed in this report to present the full picture of the City’s investments. It is the City’s intent to prefund pension costs and began to address the Net Pension Liabilities (NPL) as calculated by Governmental Accounting Standards Board Pronouncement No. 68 (GASB 68). The Section 115 Trust offered by PARS has five portfolios from which to choose in making investments of City funds. The City has s elected the “Moderately Conservative” portfolio which is the second most conservative.

Additional information on this trust can be found in City Council Staff Report ID # 7553 .

Through June 30, 2022, principal investment contributions of $38.3 million made over time 9 Packet Pg. 139

City of Palo Alto Page 8

since May 2017, have grown to $39.0 million and the net return for one and three years has been -9.90 percent and 2.17 percent respectively.

Resource Impact
This is an information report discussing the previous three months and the information presented does not result in a financial impact.

Environmental Review
This information report is not a project under the California Environmental Quality Act; therefore, an environmental review is not required.
.

Attachments:
• Attachment9.a: Attachment A Consolidated Report of Cash Management • Attachment9.b: Attachment B Investment Portfolio
• Attachment9.c: Attachment C Investment Policy Compliance 9 Packet Pg. 140
Book Value Market Value
City Investment Portfolio (see Attachment B) 590,753,786$ 552,545,617 $ Other Funds Held by the City
Cash with Wells Fargo Bank 217,733 217,733 (includes general and imprest accounts)
Cash with US Bank 2,255,286 2,255,286 (includes general and imprest accounts)
Petty/Working Cash 11,927 11,927 Total - Other Funds Held By City 2,484,946 2,484,946 Funds Under Management of Third Party Trustees *
Debt Service Proceeds
US Bank Trust Services **
1999 Utility Revenue Bonds
Debt Service Fund 82 82 2009 Water Revenue Bonds (Build America Bonds)
Debt Service and Reserve Funds 2,551,358 2,551,358 2010 & 2013 General Obligation (Library) Bond
Debt Service and Escrow Funds 2,927,702 2,927,702 2011 Utility Revenue Refunding Bonds
Debt Service and Reserve Funds 789,151 789,151 2012 University Ave. Parking Refunding Bonds
Reserve and Escrow Funds 1,677,540 1,677,540 2018 Capital Improvement (Golf Course & 2002B COP Refinance) (Taxable- Green Bond) Certificates of Participation
Debt Service and Cost of Issuance Funds 1 1 2021 Public Safety Building Certificates of Participation Construction Debt Svc, Capitalized Interest, and Cost of Issuan 49,704,763 49,704,763 California Asset Management Program (CAMP) ***
2012 University Ave. Parking Refunding Bonds
Reserve Fund 2,712,382 2,712,382
2013 General Obligation (Library) Bond
Reserve Fund 251,072 251,072
Public Agencies Post-Employment Benefits Trust ****
Public Agency Retirement Services (PARS) 39,039,274 39,039,274 Total Under Trustee Management 99,653,325 99,653,325 GRAND TOTAL 692,892,057 $ 654,683,888 $
* These funds are subject to the requirements of the underlying debt indenture. ** U.S. Bank investments are in money market mutual funds that exclusively invest in U.S. Treasury securities. *** CAMP investments are in money market mutual fund which invest in bankers acceptance, certificate of deposit, commercial paper, federal agency securities, and repurchase agreements. **** PARS investments are in moderately conservative index plus funds Attachment A
Fourth Quarter, Fiscal Year 2021-22
(Unaudited)
Consolidated Report of Cash Management
City of Palo Alto Cash and Investments

9.a
Packet Pg. 141
City of Palo Alto
City of Palo Alto
Administration Svcs. Dept.
250 Hamilton Ave., 4th Floor
Palo Alto, CA 94301
(650)329-2362
June 30, 2022
Fund ALL - Portfolio Listings
Investments by Fund
Par Value
Days To
Maturity
Maturity
Date
Current
RateMarket ValueCUSIP Investment # Issuer
Purchase
Date Book Value
YTM
360
YTM
365
LAIF & Fidelity Cash Accounts
Fidelity Investments158 3,717,486.48SYS158 11.23007/01/2020 3,717,486.48 1.213 1.2303,717,486.48 Local Agency Investment Fund159 42,921,049.99SYS159 10.94007/01/2020 42,438,340.03 0.927 0.94042,921,049.99 Subtotal and Average 46,638,536.47 46,638,536.47 46,155,826.51 0.950 0.963 1 Negotiable Certificates of Deposits
Comenity Capital Bank1959 NCD 245,000.0020033AM86 10/30/2023 4863.45010/30/2018 246,408.75 3.404 3.451245,000.00 American Federal Bank1476 NCD 245,000.0002600ADE4 09/30/2022 912.45009/30/2015 245,392.00 2.418 2.451245,000.00 Allegiance Bank - Texas1844 NCD 245,000.0001748DAW6 09/29/2022 902.05009/29/2017 245,149.45 2.022 2.051245,000.00 Alpine Bank1525 NCD 245,000.0002082CBG4 08/16/2023 4112.40002/16/2016 243,586.35 2.367 2.400245,000.00 Aneca Federal Credit Union2298 NCD 249,000.00034577AN6 03/20/2025 9931.10003/20/2020 234,304.02 1.085 1.100249,000.00 American State Bank OSCE1805 NCD 245,000.00029733BX9 05/30/2024 6992.30005/30/2017 240,614.50 2.270 2.301245,000.00 American Express Centurion Bk1986 NCD 245,000.0002589AA28 12/04/2023 5213.55012/04/2018 246,697.85 3.501 3.550245,000.00 Banner Capital Bank2453 NCD 249,000.0006654HAA6 11/28/2025 1,2460.45011/27/2020 225,539.22 0.493 0.500248,575.46 Bank of Wisconsin Dells2455 NCD 249,000.00065847EH4 07/28/2025 1,1231.05011/23/2020 231,953.46 0.542 0.549252,780.78 Beal Bank - Plano, TX2668 NCD 249,000.0007371AYT4 02/24/2027 1,6992.05003/02/2022 234,465.87 2.053 2.081248,651.33 Texas Exchange Bank2346 NCD 249,000.0088241THJ2 06/13/2025 1,0781.00006/02/2020 232,262.22 0.986 1.000249,000.00 Bank West1472 NCD 245,000.00063615AX6 09/16/2022 772.25009/16/2015 245,232.75 2.220 2.251245,000.00 Apex Bank1693 NCD 245,000.0003753XAN0 09/30/2022 911.70009/30/2016 244,936.30 1.676 1.700245,000.00 Century Next Bank2074 NCD 245,000.00156634AY3 08/30/2024 7911.70008/30/2019 236,719.00 1.678 1.701245,000.00 BankUnited NA2474 NCD 249,000.00066519QC6 01/22/2026 1,3010.55001/22/2021 225,536.73 0.592 0.600248,556.48 BMO Harris Bank2480 NCD 249,000.0005600XBX7 10/27/2028 2,3101.00001/27/2021 213,629.55 1.019 1.034248,491.88 BMW Bank of North America2448 NCD 249,000.0005580AXU3 11/20/2025 1,2380.50011/20/2020 226,174.17 0.493 0.500249,000.00 Beal Bank USA - Las Vegas, NV2669 NCD 249,000.0007371CH69 02/24/2027 1,6992.05003/02/2022 234,465.87 2.053 2.081248,651.33 Balboa Thrift & Loan1984 NCD 245,000.0005765LAW7 11/30/2022 1523.25011/30/2018 246,266.65 3.207 3.252245,000.00 Citigroup1950 NCD 245,000.0017312QJ67 04/22/2023 2953.00004/24/2018 245,894.25245,000.00 Encore Bank2343 NCD 249,000.0029260MBH7 05/21/2027 1,7851.15005/21/2020 223,375.41 1.134 1.150249,000.00 First Carolina Bank2389 NCD 248,000.0031944MBB0 08/20/2025 1,1460.45008/20/2020 226,300.00 0.444 0.450248,000.00 Celtic Bank2063 NCD 245,000.0015118RRH2 08/30/2024 7911.85008/30/2019 237,488.30 1.826 1.852245,000.00 Central State Bank IOWA2324 NCD 249,000.0015523RCP9 03/27/2025 1,0001.00003/27/2020 233,542.08 1.189 1.206247,636.36 Choice Bank - Oshkosh WI1884 NCD 245,000.0017037VBT8 12/29/2022 1812.35012/29/2017 245,306.25 2.317 2.350245,000.00 Cinfed Fed Credtit Union Bank2504 NCD 249,000.0017248MAC1 03/04/2027 1,7070.65003/04/2021 219,259.44 0.691 0.701248,418.02 Portfolio CPA
AP
Run Date: 07/19/2022 - 16:21 FI (PRF_FI) 7.3.11
Report Ver. 7.3.11
Attachment B9.b
Packet Pg. 142
June 30, 2022
Par Value
Days To
Maturity
Maturity
Date
Current
RateMarket Value
Fund ALL - Portfolio Listings
Investments by Fund Page 2
CUSIP Investment # Issuer
Purchase
Date Book Value
YTM
360
YTM
365
Negotiable Certificates of Deposits
Citadel Federal Credit Union2267 NCD 245,000.0017286TAG0 02/27/2025 9721.65002/27/2020 234,322.90 1.668 1.691244,739.31 Citizens State Bank1541 NCD 250,000.0017670BAQ1 02/17/2023 2311.75002/19/2016 249,172.50 1.727 1.751250,000.00 Commercial Savings Bank1868 NCD 245,000.00202291AD2 10/18/2022 1092.10010/18/2017 245,169.05 2.071 2.100245,000.00 Enerbank USA2215 NCD 245,000.0029278TMR8 01/29/2025 9431.80001/29/2020 235,567.50 1.779 1.803245,000.00 Connexus Credit Union2643 NCD 249,000.0020825WAR1 12/23/2026 1,6361.25012/23/2021 226,806.63 1.273 1.291248,553.82 Capital One Bank USA NA2089 NCD 245,000.0014042TCP0 09/05/2024 7971.90009/05/2019 237,725.95 1.873 1.900245,000.00 Capital One Bank USA NA2609 NCD 249,000.0014042RQB0 11/17/2026 1,6001.10011/17/2021 225,965.01 1.084 1.100249,000.00 Community State Bank, IA1471 NCD 245,000.0020404MAN1 09/12/2022 732.25009/11/2015 245,220.50 2.224 2.255245,000.00 Crescent Bank & Trust2296 NCD 248,000.00225645DN7 03/20/2025 9931.10003/20/2020 233,363.04 1.085 1.100248,000.00 Country Club Bank2477 NCD 249,000.00222327AD0 01/29/2030 2,7691.10001/29/2021 207,613.71 1.154 1.170247,741.44 Delta Natl Bank & TR2670 NCD 249,000.0024773RCR4 02/25/2027 1,7002.00003/09/2022 233,920.56 1.975 2.003249,000.00 Discover Bank / Delaware1956 NCD 245,000.00254673VJ2 10/24/2023 4803.35010/24/2018 246,085.35 3.304 3.350245,000.00 Eaglemark Savings Bank2545 NCD 249,000.0027004PBV4 07/07/2026 1,4670.85007/07/2021 225,788.22 0.919 0.932248,199.82 Eagle Bank2040 NCD 245,000.0027002YEL6 04/28/2023 3012.65004/30/2019 245,171.50 2.615 2.651245,000.00 Farmers & Merchant State Bank2486 NCD 249,000.00308682BM4 02/12/2029 2,4181.00002/12/2021 211,886.55 1.037 1.052248,175.79 Flagstar Bank FSB2414 NCD 249,000.0033847E4E4 09/30/2024 8220.40009/30/2020 233,295.57 0.394 0.400249,000.00 Poppy Bank2285 NCD 249,000.0073319FAF6 03/18/2025 9911.10003/18/2020 234,336.39 1.085 1.100249,000.00 First Federal S&L Bank1626 NCD 245,000.0032018YAW8 06/22/2023 3561.80006/22/2016 242,812.15 1.776 1.800245,000.00 1st Financial Bank2390 NCD 248,000.0032022RNT0 08/19/2025 1,1450.45008/19/2020 226,317.36 0.444 0.450248,000.00 First Farmers Bank & Trust2076 NCD 245,000.00320165JK0 09/04/2024 7961.75009/04/2019 236,939.50 1.727 1.751245,000.00 First Internet Bank1834 NCD 245,000.0032056GCQ1 07/14/2022 132.05007/14/2017 245,034.30 2.023 2.051245,000.00 Farmers Insurance Group CU2479 NCD 249,000.0030960QAK3 01/27/2026 1,3060.50001/27/2021 224,971.50 0.543 0.550248,554.77 First Oklahoma Bank2451 NCD 249,000.00335857CK2 11/30/2026 1,6130.65011/30/2020 221,027.34 0.691 0.701248,450.06 Farmers &Merchants Bank2644 NCD 249,000.00307811DM8 01/22/2030 2,7621.60001/14/2022 216,034.89 1.630 1.653248,061.11 First National Bank of America2465 NCD 249,000.0032110YRQ0 12/31/2026 1,6440.60012/31/2020 219,899.37 0.625 0.633248,626.33 FNB Bank Inc.1863 NCD 245,000.00330459CB2 10/13/2023 4692.25010/13/2017 242,714.15 2.220 2.251245,000.00 First Northeast Bank1779 NCD 245,000.0033583FAA0 10/19/2022 1102.10004/19/2017 245,171.50 2.072 2.101245,000.00 First Technology Federal Credi1955 NCD 245,000.0033715LCM0 10/17/2023 4733.40010/17/2018 246,261.75 3.355 3.401245,000.00 First Community Credit Union2554 NCD 249,000.0031986JAD3 02/26/2027 1,7010.85007/28/2021 221,532.81 0.892 0.905248,376.83 Firstier Bank2061 NCD 245,000.0033766LAJ7 08/23/2024 7841.95008/23/2019 238,078.75 1.925 1.952245,000.00 First Kentucky Bank1856 NCD 245,000.0032065TAW1 10/06/2022 972.10010/06/2017 245,178.85 2.072 2.101245,000.00 Gesa Credit Union2456 NCD 249,000.0037424PAC8 11/30/2027 1,9780.80011/30/2020 216,201.72 0.825 0.836248,518.27 Portfolio CPA
AP
Run Date: 07/19/2022 - 16:21 FI (PRF_FI) 7.3.11
Report Ver. 7.3.11

9.b
Packet Pg. 143
June 30, 2022
Par Value
Days To
Maturity
Maturity
Date
Current
RateMarket Value
Fund ALL - Portfolio Listings
Investments by Fund Page 3
CUSIP Investment # Issuer
Purchase
Date Book Value
YTM
360
YTM
365
Negotiable Certificates of Deposits
Great Plains Bank1865 NCD 245,000.0039115UBB8 07/25/2022 242.00010/25/2017 245,051.45 1.972 2.000245,000.00 Grant County Bank West V.2042 NCD 245,000.00387625AA4 05/08/2024 6772.55005/08/2019 241,971.80 2.513 2.548245,000.00 Goldman Sachs Bank USA / NY1951 NCD 245,000.0038148PJ81 05/09/2023 3123.15005/09/2018 246,104.95 3.106 3.150245,000.00 Haddon Savings Bank2447 NCD 207,000.00404730DA8 10/20/2025 1,2070.35011/16/2020 187,486.11 0.491 0.498205,750.06 Bank Hapoalim BM2457 NCD 249,000.0006251A2Q2 12/15/2025 1,2630.50012/14/2020 225,763.32 0.543 0.550248,569.67 Investors Community Bank1765 NCD 245,000.0046147USQ4 09/23/2022 842.20003/24/2017 245,227.85 2.172 2.202245,000.00 Inst. for Sav in Newburyport2556 NCD 249,000.0045780PAQ8 07/29/2026 1,4890.90007/29/2021 225,718.50 0.888 0.900249,000.00 Jonesboro State Bank2452 NCD 249,000.0048040PJL0 11/26/2027 1,9740.75011/27/2020 215,653.92 0.790 0.801248,326.68 Kansas State Bank Manhattan1798 NCD 245,000.0050116CAX7 05/31/2024 7002.50005/31/2017 241,521.00 2.465 2.500245,000.00 Knox TVA Empl Credit Union2140 NCD 248,000.00499724AF9 10/31/2023 4873.35010/24/2019 249,098.64 2.210 2.241251,504.81 Lakeside Bank1686 NCD 245,000.0051210SLR6 09/18/2023 4441.80009/16/2016 241,636.15 1.775 1.800245,000.00 Legacy Bank & Trust Company2469 NCD 249,000.0052470QAN4 12/21/2028 2,3650.85012/30/2020 210,527.01 0.889 0.901248,191.37 Live Oak Banking Company2599 NCD 249,000.00538036SS4 10/18/2027 1,9351.10010/18/2021 220,524.36 1.135 1.151248,340.28 Bank Leumi USA NY2335 NCD 249,000.00063248KR8 03/31/2023 2731.45003/31/2020 247,177.32249,000.00 Malaga Bank FSB2402 NCD 249,000.0056102AAQ9 06/30/2025 1,0950.40008/31/2020 227,705.52 0.394 0.400249,000.00 Meritrust Federal Credit Union2672 NCD 249,000.0059001PAP4 03/10/2026 1,3480.55003/07/2022 227,685.60 1.904 1.930236,791.35 Medallion Bank - Salt Lake2010 NCD 245,000.0058404DDB4 01/03/2024 5513.30001/10/2019 245,764.40 3.254 3.299245,000.00 Merchants State Bank2059 NCD 245,000.00589227AG2 08/30/2024 7911.80008/30/2019 237,280.05 1.775 1.800245,000.00 Merrick Bank2610 NCD 249,000.0059013KPS9 05/19/2026 1,4181.10011/19/2021 228,591.96 1.152 1.168248,354.90 Minwest Bank MV2478 NCD 249,000.0060425SJQ3 01/29/2029 2,4041.00001/28/2021 212,053.38 1.024 1.039248,385.64 Maine Savings Credit Union2144 NCD 245,000.00560507AN5 11/08/2024 8611.90011/08/2019 237,042.40 1.875 1.902245,000.00 Mainstreet Bank2038 NCD 245,000.0056065GAG3 04/26/2024 6652.60004/26/2019 242,302.55 2.567 2.602245,000.00 Mountain America FD Credit Uni2202 NCD 249,000.0062384RAC0 11/08/2022 1302.30001/08/2020 249,323.70 1.928 1.955249,297.12 Morgan Stanley Bank NA1890 NCD 245,000.0061747MF63 01/11/2023 1942.65001/11/2018 245,651.70 2.613 2.650245,000.00 Morgan Stanley Bank NA1993 NCD 245,000.0061760ASZ3 12/06/2023 5233.55012/06/2018 246,695.40 3.501 3.550245,000.00 Municipal Trust and Savings1800 NCD 245,000.00625925AP7 05/02/2024 6712.35005/22/2017 241,155.95 2.317 2.349245,000.00 Nebraska State Bank & Trust1466 NCD 245,000.0063969ABL7 08/26/2022 562.25008/26/2015 245,345.45 2.220 2.251245,000.00 Numerica Credit Union1991 NCD 245,000.0067054NAN3 11/28/2023 5153.55011/28/2018 246,707.65 3.503 3.551245,000.00 South Ottumwa Savings Bank1851 NCD 245,000.00839145AA7 09/29/2022 902.05009/29/2017 245,149.45 2.022 2.051245,000.00 Ottawa Savings Bank1892 NCD 245,000.0068956HAC7 01/19/2023 2022.40001/19/2018 245,306.25 2.368 2.401245,000.00 Pacific Western Bank2420 NCD 249,000.0069506YSA8 09/30/2025 1,1870.45009/30/2020 226,639.80 0.443 0.450249,000.00 Pathfinder Bank2429 NCD 249,000.0070320KAR2 10/14/2025 1,2010.50010/13/2020 226,679.64 0.533 0.540248,672.63 Portfolio CPA
AP
Run Date: 07/19/2022 - 16:21 FI (PRF_FI) 7.3.11
Report Ver. 7.3.11

9.b
Packet Pg. 144
June 30, 2022
Par Value
Days To
Maturity
Maturity
Date
Current
RateMarket Value
Fund ALL - Portfolio Listings
Investments by Fund Page 4
CUSIP Investment # Issuer
Purchase
Date Book Value
YTM
360
YTM
365
Negotiable Certificates of Deposits
People's Bank2468 NCD 249,000.00710665GD6 12/31/2029 2,7400.90012/30/2020 204,832.38 0.967 0.981247,547.50 Pentagon Fed Cred Union2565 NCD 249,000.0070962LAE2 09/01/2026 1,5230.85009/01/2021 224,680.17 0.889 0.901248,480.80 Preferred Bank LA California2047 NCD 245,000.00740367HP5 08/16/2024 7772.00008/16/2019 238,399.70 1.972 2.000245,000.00 Parkside Financial Bank1833 NCD 245,000.0070147ACE2 03/15/2023 2572.10007/19/2017 244,539.40 2.072 2.101245,000.00 Pony Express Bank2488 NCD 249,000.00732770BJ0 02/25/2030 2,7961.00002/24/2021 205,778.58 1.055 1.070247,729.55 Rayond James Bank NA2188 NCD 245,000.0075472RAU5 12/30/2024 9131.85012/30/2019 236,189.80 1.824 1.850245,000.00 Sallie Mae Bank2102 NCD 245,000.007954504D4 09/18/2024 8101.90009/18/2019 237,591.20 1.873 1.900245,000.00 State Bank of India2403 NCD 249,000.00856285UJ8 09/04/2025 1,1610.50009/04/2020 227,454.03 0.493 0.500249,000.00 Stifel Bank & Trust1953 NCD 245,000.0086063QAK1 05/15/2023 3182.95005/15/2018 245,644.35 2.911 2.951245,000.00 San Francisco Credit Union2297 NCD 249,000.0079772FAF3 03/27/2025 1,0001.10003/27/2020 234,191.97 1.085 1.100249,000.00 Sunwest Bank2491 NCD 249,000.0086804DCQ9 02/17/2028 2,0570.80002/17/2021 214,916.88 0.861 0.873247,998.06 Somerset Trust Company Bank1616 NCD 245,000.00835104BL3 06/12/2023 3461.80006/10/2016 242,981.20 1.776 1.800245,000.00 Slovak Savings Bank1872 NCD 245,000.0083158TAA0 10/20/2022 1112.10010/20/2017 245,171.50 2.072 2.101245,000.00 Southwest Financial Fed. Credi2333 NCD 249,000.0084485EAG2 03/28/2024 6361.15003/31/2020 240,399.54 1.134 1.150249,000.00 Synchrony Bank2563 NCD 249,000.0087165FZN7 08/20/2026 1,5110.90008/20/2021 225,494.40 0.887 0.900249,000.00 Texas Bank Henderson2464 NCD 249,000.00882214AA7 12/23/2025 1,2710.45012/23/2020 224,914.23 0.483 0.490248,653.36 Third Federal Savings and Loan2157 NCD 245,000.0088413QCK2 11/25/2024 8781.95011/25/2019 237,167.35 1.923 1.950245,000.00 Crossfirst Bank of Leawood1804 NCD 245,000.0022766ABF1 06/09/2023 3432.15006/09/2017 243,601.05 2.121 2.151245,000.00 Toyota Financial Savings Bank2551 NCD 249,000.0089235MLC3 07/15/2026 1,4750.95007/15/2021 226,582.53 0.936 0.950249,000.00 Uinta Bank1639 NCD 245,000.00903572BC8 12/26/2023 5431.70006/24/2016 240,974.65 1.676 1.700245,000.00 Greenstate Credit Union2552 NCD 249,000.0039573LBM9 07/21/2026 1,4810.95007/21/2021 226,336.02 0.937 0.950249,000.00 USAlliance Federal Credit Unio2325 NCD 249,000.0090352RAU9 03/31/2025 1,0041.15003/31/2020 234,777.12 1.155 1.171248,863.09 USF Federal Credit Union2546 NCD 249,000.0090353EAR4 07/15/2031 3,3011.75007/15/2021 209,486.19 1.801 1.826247,424.52 Vystar Credit Union2136 NCD 245,000.0092891CCE0 12/11/2023 5283.65010/18/2019 247,043.30 2.170 2.200249,909.70 Washington Federal2049 NCD 245,000.00938828BJ8 08/23/2024 7842.05008/23/2019 238,585.90 2.024 2.052245,000.00 Western State Bank2342 NCD 248,000.0095960NKE6 11/13/2025 1,2311.05005/13/2020 229,700.08 1.035 1.050248,000.00 Wyoming Bank & Trust2446 NCD 249,000.0098321PAJ9 11/28/2025 1,2460.50011/27/2020 225,947.58 0.515 0.522248,745.28 Woodford State Bank1459 NCD 245,000.00979424AA6 07/29/2022 282.35008/12/2015 245,186.20 2.317 2.349245,000.00 Subtotal and Average 29,081,295.56 29,104,000.00 27,609,197.84 1.600 1.622 975 Corporate Medium Term Bonds
Apple, Inc.2053 MTN 1,500,000.00037833CU2 05/11/2024 6802.85008/06/2019 1,489,170.00 1.998 2.0251,521,096.21 Apple, Inc.2082 MTN 550,000.00037833AK6 05/03/2023 3062.40008/29/2019 546,821.00 1.726 1.750552,890.44 Portfolio CPA
AP
Run Date: 07/19/2022 - 16:21 FI (PRF_FI) 7.3.11
Report Ver. 7.3.11

9.b
Packet Pg. 145
June 30, 2022
Par Value
Days To
Maturity
Maturity
Date
Current
RateMarket Value
Fund ALL - Portfolio Listings
Investments by Fund Page 5
CUSIP Investment # Issuer
Purchase
Date Book Value
YTM
360
YTM
365
Corporate Medium Term Bonds
Apple, Inc.2401 MTN 1,500,000.00037833DF4 01/13/2025 9272.75008/28/2020 1,481,265.00 0.620 0.6281,579,383.95 Apple, Inc.2489 MTN 700,000.00037833EB2 02/08/2026 1,3180.70002/08/2021 637,308.00 0.684 0.694700,145.06 Apple, Inc.2667 MTN 750,000.00037833CJ7 02/09/2027 1,6843.35002/23/2022 745,162.50 2.115 2.145787,413.12 Alphabet (Google) Inc.2507 MTN 200,000.0002079KAH0 08/15/2025 1,1410.45003/01/2021 183,818.00 0.668 0.678198,599.85 Alphabet (Google) Inc.2675 MTN 1,000,000.0002079KAC1 08/15/2026 1,5061.99803/14/2022 946,870.00 2.197 2.228991,008.32 Johnson & Johnson2466 MTN 2,000,000.00478160CN2 09/01/2025 1,1580.55012/23/2020 1,844,600.00 0.479 0.4862,003,993.58 Johnson & Johnson2508 MTN 2,000,000.00478160BY9 03/01/2026 1,3392.45003/01/2021 1,945,220.00 0.812 0.8232,110,903.32 Johnson & Johnson2509 MTN 1,000,000.00478160BY9 03/01/2026 1,3392.45003/01/2021 972,610.00 0.812 0.8241,055,437.44 Microsoft Corporation2212 MTN 1,800,000.00594918BX1 02/06/2024 5852.87501/22/2020 1,794,132.00 1.727 1.7511,829,825.65 Microsoft Corporation2450 MTN 2,920,000.00594918BJ2 11/03/2025 1,2213.12511/18/2020 2,917,693.20 0.572 0.5803,152,101.69 Microsoft Corporation2506 MTN 180,000.00594918BJ2 11/03/2025 1,2213.12503/01/2021 179,857.80 0.753 0.763193,183.22 Stanford University2046 MTN 2,000,000.00525555AB4 02/01/2024 5806.87505/14/2019 2,111,820.00 2.367 2.4002,091,131.76 Stanford University2182 MTN 1,000,000.00525555AB4 02/01/2024 5806.87512/12/2019 1,055,910.00 1.934 1.9601,074,371.79 Stanford University2648 MTN 1,500,000.0085440KAC8 06/01/2027 1,7961.28901/07/2022 1,346,205.00 1.479 1.5001,485,100.61 Stanford University2658 MTN 500,000.0085440KAC8 06/01/2027 1,7961.28902/01/2022 448,735.00 1.849 1.875486,348.70 Yale University2376 MTN 2,000,000.0098459LAA1 04/15/2025 1,0190.87307/01/2020 1,877,880.00 0.616 0.6252,013,347.84 Yale University2511 MTN 3,000,000.0098459LAA1 04/15/2025 1,0190.87303/01/2021 2,816,820.00 0.638 0.6463,018,266.85 Subtotal and Average 26,844,549.40 26,100,000.00 25,341,897.50 1.168 1.185 1,074 Federal Agency Bonds
Federal Agricultural Mortgage1130 1,500,000.0031315PPX1 07/05/2022 42.20012/13/2012 1,500,090.00 1.930 1.9571,500,036.76 Federal Agricultural Mortgage1134 750,000.0031315PB32 11/21/2022 1432.00012/19/2012 749,632.50 2.081 2.110749,711.63 Federal Agricultural Mortgage1137 1,500,000.0031315PUE7 12/27/2022 1792.18001/04/2013 1,498,935.00 2.165 2.1961,499,894.86 Federal Agricultural Mortgage1141 1,500,000.0031315PUE7 12/27/2022 1792.18001/08/2013 1,498,935.00 2.195 2.2251,499,701.35 Federal Agricultural Mortgage1144 1,500,000.0031315PUE7 12/27/2022 1792.18001/23/2013 1,498,935.00 2.111 2.1411,500,255.58 Federal Agricultural Mortgage1147 2,595,000.0031315PUE7 12/27/2022 1792.18001/28/2013 2,593,157.55 2.199 2.2292,594,433.10 Federal Agricultural Mortgage1279 1,250,000.0031315PPX1 07/05/2022 42.20004/23/2014 1,250,075.00 2.889 2.9301,249,910.42 Federal Agricultural Mortgage1428 404,000.0031315PL23 03/27/2024 6353.33001/09/2015 406,286.64 2.540 2.575408,687.64 Federal Agricultural Mortgage1433 1,604,000.0031315PD89 06/12/2023 3462.61001/22/2015 1,598,706.80 2.269 2.3011,608,244.95 Federal Agricultural Mortgage1447 1,450,000.0031315PD89 06/12/2023 3462.61002/09/2015 1,445,215.00 2.377 2.4101,452,471.43 Federal Agricultural Mortgage1576 1,000,000.0031315PZS1 01/24/2023 2072.13004/06/2016 998,070.00 1.839 1.8641,001,396.37 Federal Agricultural Mortgage1580 474,000.0031315PEM7 08/04/2025 1,1304.35004/08/2016 491,509.56 2.296 2.328500,492.86 Federal Agricultural Mortgage1595 1,500,000.0031315P2J7 05/01/2024 6703.30004/21/2016 1,508,955.00 2.084 2.1121,529,878.13 Portfolio CPA
AP
Run Date: 07/19/2022 - 16:21 FI (PRF_FI) 7.3.11
Report Ver. 7.3.11

9.b
Packet Pg. 146
June 30, 2022
Par Value
Days To
Maturity
Maturity
Date
Current
RateMarket Value
Fund ALL - Portfolio Listings
Investments by Fund Page 6
CUSIP Investment # Issuer
Purchase
Date Book Value
YTM
360
YTM
365
Federal Agency Bonds
Federal Agricultural Mortgage1604 1,500,000.0031315P2J7 05/01/2024 6703.30004/26/2016 1,508,955.00 2.159 2.1891,527,857.26 Federal Agricultural Mortgage1617 500,000.0031315PUE7 12/27/2022 1792.18005/26/2016 499,645.00 1.844 1.870500,708.16 Federal Agricultural Mortgage1665 2,000,000.003132X0BH3 07/15/2022 142.38007/25/2016 2,000,560.00 1.499 1.5202,000,636.97 Federal Agricultural Mortgage1710 1,500,000.0031315PRA9 02/03/2026 1,3134.81010/18/2016 1,589,160.00 2.131 2.1601,628,562.69 Federal Agricultural Mortgage1817 1,000,000.0031315PPX1 07/05/2022 42.20006/14/2017 1,000,060.00 1.908 1.9341,000,027.94 Federal Agricultural Mortgage1867 1,000,000.003132X0WL1 08/23/2024 7842.25010/06/2017 984,590.00 2.332 2.365997,731.06 Federal Agricultural Mortgage1877 1,500,000.003132X0ZZ7 12/12/2022 1642.26012/12/2017 1,497,285.00 2.229 2.2601,500,000.00 Federal Agricultural Mortgage1893 1,000,000.003130H0AU7 08/01/2024 7622.62501/09/2018 992,640.00 2.546 2.5811,000,822.40 Federal Agricultural Mortgage1901 1,500,000.003130H0AU7 08/01/2024 7622.62501/11/2018 1,488,960.00 2.623 2.6601,498,998.27 Federal Agricultural Mortgage1912 2,000,000.003132X0G39 01/30/2023 2132.50001/30/2018 1,997,120.00 2.472 2.5071,999,921.04 Federal Agricultural Mortgage1915 1,500,000.003132X0G39 01/30/2023 2132.50001/30/2018 1,497,840.00 2.481 2.5151,499,870.77 Federal Agricultural Mortgage1921 2,000,000.003132X0G39 01/30/2023 2132.50001/31/2018 1,997,120.00 2.556 2.5921,999,002.84 Federal Agricultural Mortgage1924 1,100,000.0031315PZS1 01/24/2023 2072.13002/08/2018 1,097,877.00 2.578 2.6141,097,199.37 Federal Agricultural Mortgage1928 1,500,000.003132X0H87 02/22/2023 2362.60002/22/2018 1,499,880.00 2.564 2.6001,500,000.00 Federal Agricultural Mortgage1936 1,500,000.003132X0L33 02/21/2023 2352.77002/23/2018 1,501,515.00 2.732 2.7701,500,000.00 Federal Agricultural Mortgage1999 549,000.0031315P4B2 01/30/2024 5783.46012/14/2018 553,046.13 3.018 3.060552,185.58 Federal Agricultural Mortgage2034 1,000,000.0031422BEJ5 04/09/2024 6482.35004/09/2019 988,980.00 2.365 2.398999,195.41 Federal Agricultural Mortgage2035 678,000.0031315PCY3 11/20/2024 8735.25004/08/2019 712,293.24 2.420 2.454720,003.80 Federal Agricultural Mortgage2098 550,000.0031315PEM7 08/04/2025 1,1304.35009/09/2019 570,317.00 1.659 1.683592,994.25 Federal Agricultural Mortgage2301 1,569,000.0031315PB99 11/19/2027 1,9672.85003/11/2020 1,536,615.84 1.050 1.0641,713,398.04 Federal Agricultural Mortgage2340 Call 2,000,000.0031422BZS2 05/13/2030 2,8731.50005/13/2020 1,761,040.00 1.479 1.5002,000,000.00 Federal Agricultural Mortgage2366 Call 1,750,000.0031422BF54 06/24/2030 2,9151.40006/24/2020 1,526,682.50 1.380 1.4001,750,000.00 Federal Agricultural Mortgage2367 Call 2,000,000.0031422BF54 06/24/2030 2,9151.40006/24/2020 1,744,780.00 1.380 1.4002,000,000.00 Federal Agricultural Mortgage2381 Call 1,500,000.0031422BH78 07/08/2030 2,9291.40007/08/2020 1,307,505.00 1.380 1.4001,500,000.00 Federal Agricultural Mortgage2425 Call 2,000,000.0031422BX54 09/27/2030 3,0101.30010/08/2020 1,722,120.00 1.286 1.3042,000,000.00 Federal Agricultural Mortgage2435 Call 2,000,000.0031422BZ45 10/21/2030 3,0341.28010/21/2020 1,717,280.00 1.262 1.2802,000,000.00 Federal Agricultural Mortgage2439 Call 2,000,000.0031422B2E9 10/29/2030 3,0421.34010/29/2020 1,724,340.00 1.321 1.3402,000,000.00 Federal Agricultural Mortgage2449 1,500,000.0031422B3D0 11/20/2030 3,0641.15011/20/2020 1,238,910.00 1.134 1.1501,500,000.00 Federal Agricultural Mortgage2458 Call 1,500,000.0031422B4A5 12/11/2030 3,0851.30012/11/2020 1,286,265.00 1.282 1.3001,500,000.00 Federal Agricultural Mortgage2459 Call 2,000,000.0031422B3W8 12/16/2030 3,0901.45012/16/2020 1,738,720.00 1.430 1.4502,000,000.00 Federal Agricultural Mortgage2461 1,000,000.0031422B3D0 11/20/2030 3,0641.15012/09/2020 825,940.00 1.144 1.160999,156.94 Federal Agricultural Mortgage2471 1,500,000.0031422B6K1 01/15/2026 1,2940.48001/15/2021 1,370,085.00 0.493 0.5001,498,938.33 Portfolio CPA
AP
Run Date: 07/19/2022 - 16:21 FI (PRF_FI) 7.3.11
Report Ver. 7.3.11

9.b
Packet Pg. 147
June 30, 2022
Par Value
Days To
Maturity
Maturity
Date
Current
RateMarket Value
Fund ALL - Portfolio Listings
Investments by Fund Page 7
CUSIP Investment # Issuer
Purchase
Date Book Value
YTM
360
YTM
365
Federal Agency Bonds
Federal Agricultural Mortgage2473 Call 1,500,000.0031422B6A3 01/15/2031 3,1201.29001/15/2021 1,282,200.00 1.319 1.3381,494,236.25 Federal Agricultural Mortgage2484 Call 1,000,000.0031422B7E4 01/28/2031 3,1331.32001/28/2021 856,160.00 1.301 1.3201,000,000.00 Federal Agricultural Mortgage2496 Call 1,500,000.0031422XAW2 02/25/2031 3,1611.53002/25/2021 1,302,870.00 1.509 1.5301,500,000.00 Federal Agricultural Mortgage2513 1,000,000.0031422XCB6 03/04/2031 3,1681.47003/04/2021 842,740.00 1.581 1.602989,381.80 Federal Agricultural Mortgage2519 1,500,000.0031422XDX7 03/27/2026 1,3650.83003/29/2021 1,381,080.00 0.828 0.8401,499,438.54 Federal Agricultural Mortgage2524 1,500,000.0031422XDX7 03/27/2026 1,3650.83003/31/2021 1,381,080.00 0.913 0.9261,494,716.43 Federal Agricultural Mortgage2527 Call 1,500,000.0031422XEE8 04/07/2031 3,2022.07004/07/2021 1,352,175.00 2.074 2.1031,496,280.00 Federal Agricultural Mortgage2529 2,000,000.0031422XEL2 04/13/2028 2,1131.37504/15/2021 1,797,640.00 1.311 1.3302,004,944.54 Federal Agricultural Mortgage2530 1,500,000.0031422XFJ6 04/29/2031 3,2241.66004/29/2021 1,280,415.00 1.627 1.6501,501,191.75 Federal Agricultural Mortgage2533 1,500,000.0031422XDX7 03/27/2026 1,3650.83005/20/2021 1,381,080.00 0.864 0.8761,497,477.12 Federal Agricultural Mortgage2540 255,000.0031422XDX7 03/27/2026 1,3650.83006/08/2021 234,783.60 0.820 0.831254,983.72 Federal Agricultural Mortgage2593 1,000,000.0031422XNM0 10/05/2026 1,5571.05010/05/2021 918,050.00 1.035 1.0501,000,000.00 Federal Agricultural Mortgage2621 1,000,000.0031422XPS5 11/17/2026 1,6001.15011/17/2021 919,050.00 1.272 1.290994,063.73 Federal Agricultural Mortgage2625 1,000,000.0031422XQM7 12/01/2026 1,6141.32012/01/2021 925,030.00 1.301 1.3201,000,000.00 Federal Agricultural Mortgage2634 1,500,000.0031422XRK0 01/04/2027 1,6481.32001/04/2022 1,384,335.00 1.301 1.3201,500,000.00 Federal Agricultural Mortgage2640 Call 1,500,000.0031422XRY0 12/29/2031 3,4682.15012/29/2021 1,347,150.00 2.120 2.1501,500,000.00 Federal Farm Credit Bank .1241 500,000.003133ECRH9 06/06/2023 3402.45001/09/2014 498,550.00 3.383 3.430496,129.75 Federal Farm Credit Bank .1526 625,000.003133EAA65 07/26/2023 3902.12501/27/2016 619,712.50 2.024 2.052625,449.33 Federal Farm Credit Bank .1615 1,000,000.003133EC7D0 12/13/2024 8962.12505/13/2016 979,250.00 1.930 1.9561,003,773.48 Federal Farm Credit Bank .1787 900,000.003133EEVD9 03/25/2024 6332.30005/04/2017 891,873.00 2.274 2.306899,907.19 Federal Farm Credit Bank .1822 500,000.003133EDWX6 10/07/2024 8292.91006/21/2017 499,390.00 2.143 2.172507,683.02 Federal Farm Credit Bank .1843 445,000.003133ED6R8 11/07/2022 1292.93009/14/2017 446,504.10 1.870 1.896446,525.66 Federal Farm Credit Bank .1932 1,500,000.003133EJDE6 02/16/2023 2302.57002/16/2018 1,498,740.00 2.605 2.6421,499,371.56 Federal Farm Credit Bank .2016 500,000.003133EEG79 09/07/2023 4332.15001/15/2019 495,550.00 2.656 2.693496,993.16 Federal Farm Credit Bank .2017 650,000.003133EC2C7 11/09/2023 4962.13001/15/2019 641,699.50 2.662 2.699645,320.84 Federal Farm Credit Bank .2314 1,000,000.003133EAG44 08/03/2026 1,4942.63003/13/2020 981,020.00 1.089 1.1041,060,057.60 Federal Farm Credit Bank .2371 Call 1,500,000.003133ELQ31 07/01/2030 2,9221.33007/01/2020 1,267,830.00 1.311 1.3301,500,000.00 Federal Farm Credit Bank .2372 Call 1,500,000.003133ELQ31 07/01/2030 2,9221.33007/01/2020 1,267,830.00 1.311 1.3301,500,000.00 Federal Farm Credit Bank .2391 Call 1,500,000.003133EL3H5 08/12/2025 1,1380.57008/12/2020 1,383,795.00 0.587 0.5951,498,832.29 Federal Farm Credit Bank .2406 Call 1,500,000.003133EL4W1 08/25/2025 1,1510.61009/03/2020 1,385,145.00 0.611 0.6201,499,525.39 Federal Farm Credit Bank .2408 Call 1,500,000.003133EL4W1 08/25/2025 1,1510.61009/10/2020 1,385,145.00 0.611 0.6201,499,523.53 Federal Farm Credit Bank .2416 Call 1,500,000.003133EL7K4 09/16/2025 1,1730.55009/22/2020 1,385,670.00 0.542 0.5491,500,000.00 Portfolio CPA
AP
Run Date: 07/19/2022 - 16:21 FI (PRF_FI) 7.3.11
Report Ver. 7.3.11

9.b
Packet Pg. 148
June 30, 2022
Par Value
Days To
Maturity
Maturity
Date
Current
RateMarket Value
Fund ALL - Portfolio Listings
Investments by Fund Page 8
CUSIP Investment # Issuer
Purchase
Date Book Value
YTM
360
YTM
365
Federal Agency Bonds
Federal Farm Credit Bank .2417 Call 1,500,000.003133EMBH4 09/29/2025 1,1860.53009/29/2020 1,378,230.00 0.522 0.5301,500,000.00 Federal Farm Credit Bank .2423 Call 1,500,000.003133EMBJ0 09/29/2025 1,1860.53009/29/2020 1,362,750.00 0.537 0.5451,499,270.00 Federal Farm Credit Bank .2427 Call 2,000,000.003133EMAZ5 06/24/2030 2,9151.25010/01/2020 1,675,000.00 1.246 1.2631,997,949.61 Federal Farm Credit Bank .2442 Call 1,500,000.003133EMFG2 11/04/2030 3,0481.37011/04/2020 1,244,325.00 1.351 1.3701,500,000.00 Federal Farm Credit Bank .2443 Call 1,500,000.003133EMFG2 11/04/2030 3,0481.37011/04/2020 1,244,325.00 1.351 1.3701,500,000.00 Federal Farm Credit Bank .2472 Call 1,500,000.003133EMNB4 01/14/2031 3,1191.38001/14/2021 1,293,270.00 1.361 1.3801,500,000.00 Federal Farm Credit Bank .2525 Call 1,500,000.003133EMRE4 02/18/2031 3,1541.42004/01/2021 1,281,105.00 1.834 1.8591,448,180.27 Federal Farm Credit Bank .2538 Call 1,000,000.003133EMUG5 03/24/2031 3,1881.98005/27/2021 870,980.00 1.887 1.9131,005,233.89 Federal Home Loan Bank1699 500,000.003133827E7 02/06/2023 2202.13010/05/2016 498,550.00 1.578 1.600501,498.68 Federal Home Loan Bank1886 1,000,000.003130A3VC5 12/08/2023 5252.25001/03/2018 988,280.00 2.359 2.392998,101.51 Federal Home Loan Bank1896 1,000,000.003130A3DL5 09/08/2023 4342.37501/09/2018 993,860.00 2.376 2.409999,621.48 Federal Home Loan Bank1903 500,000.003130ADEV0 01/17/2023 2002.38001/18/2018 499,690.00 2.385 2.418499,901.95 Federal Home Loan Bank2347 Call 1,500,000.003130AJMF3 11/28/2028 2,3421.32005/28/2020 1,307,280.00 1.301 1.3201,500,000.00 Federal Home Loan Bank2358 Call 1,000,000.003130AJP78 06/11/2029 2,5371.40006/11/2020 858,550.00 1.380 1.4001,000,000.00 Federal Home Loan Bank2361 Call 1,000,000.003130AJP78 06/11/2029 2,5371.40006/11/2020 858,550.00 1.427 1.447996,913.58 Federal Home Loan Bank2368 Call 900,000.003130AJR76 06/29/2029 2,5551.25006/29/2020 764,208.00 1.232 1.250900,000.00 Federal Home Loan Bank2369 Call 1,500,000.003130AJRG6 06/24/2030 2,9151.36006/24/2020 1,312,650.00 1.341 1.3601,500,000.00 Federal Home Loan Bank2375 Call 1,500,000.003130AJSR1 07/09/2030 2,9301.39007/09/2020 1,280,220.00 1.370 1.3901,500,000.00 Federal Home Loan Bank2377 Call 1,500,000.003130AJSR1 07/09/2030 2,9301.39007/09/2020 1,280,220.00 1.370 1.3901,500,000.00 Federal Home Loan Bank2384 Call 1,500,000.003130AJSR1 07/09/2030 2,9301.39007/09/2020 1,280,220.00 1.382 1.4011,498,676.33 Federal Home Loan Bank2395 Call 1,500,000.003130AJZ36 08/27/2025 1,1530.60008/27/2020 1,381,815.00 0.611 0.6201,499,053.33 Federal Home Loan Bank2399 Call 1,500,000.003130AJZ36 08/27/2025 1,1530.60008/27/2020 1,381,815.00 0.611 0.6201,499,053.33 Federal Home Loan Bank2405 Call 1,500,000.003130AK3Z7 09/29/2025 1,1860.57009/29/2020 1,392,165.00 0.582 0.5901,499,026.67 Federal Home Loan Bank2411 Call 1,180,000.003130AJZ36 08/27/2025 1,1530.60009/16/2020 1,087,027.80 0.591 0.5991,180,000.00 Federal Home Loan Bank2419 Call 1,500,000.003130AKAZ91 09/29/2025 1,1860.52009/29/2020 1,389,900.00 0.512 0.5201,500,000.00 Federal Home Loan Bank2445 Call 1,200,000.003130AJQS1 06/25/2030 2,9161.35011/04/2020 1,003,104.00 1.334 1.3531,199,682.05 Federal Home Loan Bank2475 Call 1,500,000.003130AKQN9 01/09/2031 3,1141.40001/28/2021 1,293,480.00 1.380 1.4001,500,000.00 Federal Home Loan Bank2476 Call 1,500,000.003130AKQV1 01/28/2031 3,1331.40001/28/2021 1,292,070.00 1.380 1.4001,500,000.00 Federal Home Loan Bank2485 Call 1,500,000.003130AKVH6 02/10/2031 3,1461.35002/10/2021 1,254,450.00 1.331 1.3501,500,000.00 Federal Home Loan Bank2490 Call 2,000,000.003130AKYB6 02/18/2031 3,1541.40002/18/2021 1,720,600.00 1.380 1.4002,000,000.00 Federal Home Loan Bank2494 Call 1,500,000.003130AL2J2 02/26/2031 3,1621.50002/26/2021 1,299,840.00 1.479 1.5001,500,000.00 Federal Home Loan Bank2500 Call 1,500,000.003130ALF66 02/25/2031 3,1611.62502/25/2021 1,317,150.00 1.602 1.6251,500,000.00 Portfolio CPA
AP
Run Date: 07/19/2022 - 16:21 FI (PRF_FI) 7.3.11
Report Ver. 7.3.11

9.b
Packet Pg. 149
June 30, 2022
Par Value
Days To
Maturity
Maturity
Date
Current
RateMarket Value
Fund ALL - Portfolio Listings
Investments by Fund Page 9
CUSIP Investment # Issuer
Purchase
Date Book Value
YTM
360
YTM
365
Federal Agency Bonds
Federal Home Loan Bank2520 Call 1,925,000.003130ALF33 03/16/2026 1,3540.75003/25/2021 1,775,273.50 0.853 0.8651,916,964.66 Federal Home Loan Bank2607 Call 1,000,000.003130APPJ8 11/04/2031 3,4132.00011/04/2021 901,150.00 1.972 2.0001,000,000.00 Federal Home Loan Bank2613 Call 1,000,000.003130APV77 12/10/2026 1,6231.50012/10/2021 942,190.00 1.479 1.5001,000,000.00 Federal Home Loan Bank2616 Call 1,000,000.003130APW84 12/03/2026 1,6161.50012/03/2021 942,790.00 1.479 1.5001,000,000.00 Federal Home Loan Bank2618 Call 1,000,000.003130APXD2 12/17/2026 1,6301.55012/17/2021 943,920.00 1.528 1.5501,000,000.00 Federal Home Loan Bank2619 Call 1,000,000.003130APWY7 12/07/2026 1,6201.35012/07/2021 937,190.00 1.331 1.3501,000,000.00 Federal Home Loan Bank2620 Call 1,000,000.003130APXT7 12/17/2026 1,6301.60012/17/2021 939,690.00 1.578 1.6001,000,000.00 Federal Home Loan Bank2659 Call 1,000,000.003130AQSM6 02/25/2027 1,7002.05002/25/2022 957,900.00 2.021 2.0501,000,000.00 Federal Home Loan Bank2662 Call 1,000,000.003130AQX65 03/04/2027 1,7072.25003/04/2022 964,070.00 2.219 2.2501,000,000.00 Federal Home Loan Bank2663 Call 1,000,000.003130AQYA5 02/24/2027 1,6992.25002/28/2022 962,350.00 2.219 2.2501,000,000.00 Federal Home Loan Bank2664 Call 1,500,000.003130AQYG2 02/25/2027 1,7002.50002/28/2022 1,457,100.00 2.470 2.5041,500,000.00 Federal Home Loan Bank2665 Call 1,000,000.003130AQZD8 02/25/2027 1,7002.62502/25/2022 972,110.00 2.589 2.6251,000,000.00 Fed. Home Loan Mortgage Corp.2345 Call 455,000.003134GVUA4 05/18/2028 2,1481.20005/18/2020 410,314.45 1.183 1.200455,000.00 Fed. Home Loan Mortgage Corp.2370 Call 1,500,000.003134GV3B2 06/28/2030 2,9191.40006/30/2020 1,267,515.00 1.380 1.4001,500,000.00 Fed. Home Loan Mortgage Corp.2373 Call 1,500,000.003134GV3U0 06/29/2029 2,5551.25006/29/2020 1,300,080.00 1.232 1.2501,500,000.00 Fed. Home Loan Mortgage Corp.2379 Call 1,500,000.003134GV4E5 12/29/2028 2,3731.20007/01/2020 1,332,585.00 1.183 1.1991,500,000.00 Fed. Home Loan Mortgage Corp.2380 Call 1,500,000.003134GV5D6 01/08/2029 2,3831.20007/08/2020 1,319,445.00 1.183 1.2001,500,000.00 Fed. Home Loan Mortgage Corp.2382 Call 1,500,000.003134GV5A2 07/15/2030 2,9361.37507/15/2020 1,263,255.00 1.356 1.3751,500,000.00 Fed. Home Loan Mortgage Corp.2386 Call 1,500,000.003134GV7L6 07/29/2030 2,9501.35007/29/2020 1,260,510.00 1.331 1.3501,500,000.00 Fed. Home Loan Mortgage Corp.2387 Call 1,500,000.003134GV7L6 07/29/2030 2,9501.35007/29/2020 1,260,510.00 1.331 1.3501,500,000.00 Fed. Home Loan Mortgage Corp.2396 Call 1,000,000.003134GWNC6 08/19/2025 1,1450.62508/20/2020 928,270.00 0.616 0.6251,000,000.00 Fed. Home Loan Mortgage Corp.2400 Call 1,500,000.003134GWC53 09/15/2025 1,1720.65009/15/2020 1,391,085.00 0.641 0.6501,500,000.00 Fed. Home Loan Mortgage Corp.2404 Call 1,447,000.003134GWA55 09/09/2025 1,1660.65009/09/2020 1,342,454.25 0.641 0.6501,447,000.00 Fed. Home Loan Mortgage Corp.2407 Call 1,500,000.003134GWD52 09/02/2025 1,1590.68009/04/2020 1,393,530.00 0.670 0.6791,500,000.00 Fed. Home Loan Mortgage Corp.2409 Call 1,500,000.003134GWP75 09/23/2025 1,1800.62509/23/2020 1,383,285.00 0.616 0.6251,500,000.00 Fed. Home Loan Mortgage Corp.2410 Call 1,000,000.003134GWP75 09/23/2025 1,1800.62509/23/2020 922,190.00 0.616 0.6251,000,000.00 Fed. Home Loan Mortgage Corp.2418 Call 1,500,000.003134GWVV5 10/15/2025 1,2020.50010/15/2020 1,372,470.00 0.493 0.5001,500,000.00 Fed. Home Loan Mortgage Corp.2421 Call 2,000,000.003134GWW93 09/30/2025 1,1870.55009/30/2020 1,837,860.00 0.542 0.5502,000,000.00 Fed. Home Loan Mortgage Corp.2422 Call 1,500,000.003134GWW93 09/30/2025 1,1870.55009/30/2020 1,378,395.00 0.542 0.5501,500,000.00 Fed. Home Loan Mortgage Corp.2424 Call 1,500,000.003134GWXK7 09/30/2025 1,1870.55009/30/2020 1,379,115.00 0.542 0.5501,500,000.00 Fed. Home Loan Mortgage Corp.2426 Call 1,500,000.003134GWXX9 10/15/2025 1,2020.55010/15/2020 1,377,030.00 0.542 0.5501,500,000.00 Fed. Home Loan Mortgage Corp.2428 Call 1,500,000.003134GWY26 10/08/2025 1,1950.57010/08/2020 1,378,725.00 0.562 0.5701,500,000.00 Portfolio CPA
AP
Run Date: 07/19/2022 - 16:21 FI (PRF_FI) 7.3.11
Report Ver. 7.3.11

9.b
Packet Pg. 150
June 30, 2022
Par Value
Days To
Maturity
Maturity
Date
Current
RateMarket Value
Fund ALL - Portfolio Listings
Investments by Fund Page 10
CUSIP Investment # Issuer
Purchase
Date Book Value
YTM
360
YTM
365
Federal Agency Bonds
Fed. Home Loan Mortgage Corp.2430 Call 1,500,000.003134GWYZ3 10/28/2025 1,2150.53010/28/2020 1,374,585.00 0.522 0.5301,500,000.00 Fed. Home Loan Mortgage Corp.2431 Call 1,500,000.003134GWZ33 10/22/2030 3,0351.25010/22/2020 1,245,510.00 1.232 1.2501,500,000.00 Fed. Home Loan Mortgage Corp.2432 Call 1,500,000.003134GWZL3 10/29/2025 1,2160.57010/29/2020 1,376,655.00 0.562 0.5701,500,000.00 Fed. Home Loan Mortgage Corp.2433 Call 2,000,000.003134GW3T1 10/28/2030 3,0411.40010/28/2020 1,680,340.00 1.380 1.4002,000,000.00 Fed. Home Loan Mortgage Corp.2434 Call 1,500,000.003134GW3H7 10/29/2025 1,2160.61010/29/2020 1,378,680.00 0.601 0.6101,500,000.00 Fed. Home Loan Mortgage Corp.2436 Call 2,000,000.003134GWZZ2 10/28/2030 3,0411.30010/28/2020 1,666,040.00 1.282 1.3002,000,000.00 Fed. Home Loan Mortgage Corp.2437 Call 750,000.003134GW3Z7 10/28/2025 1,2150.60010/28/2020 692,250.00 0.591 0.600750,000.00 Fed. Home Loan Mortgage Corp.2438 Call 1,500,000.003134GW3X2 10/27/2025 1,2140.62510/27/2020 1,379,145.00 0.616 0.6251,500,000.00 Fed. Home Loan Mortgage Corp.2440 Call 1,500,000.003134GW6N1 11/05/2030 3,0491.40011/05/2020 1,259,235.00 1.380 1.4001,500,000.00 Fed. Home Loan Mortgage Corp.2444 Call 1,500,000.003134GW6N1 11/05/2030 3,0491.40011/05/2020 1,259,235.00 1.380 1.4001,500,000.00 Federal National Mortgage Asso1715 500,000.0031364CCC0 04/30/2026 1,3997.12511/10/2016 571,980.00 2.367 2.400580,515.84 Federal National Mortgage Asso1883 500,000.003136G05L1 08/26/2022 562.00012/29/2017 500,280.00 2.238 2.270499,805.12 Federal National Mortgage Asso1894 1,000,000.003135G0T78 10/05/2022 962.00001/09/2018 999,530.00 2.288 2.320999,212.08 Federal National Mortgage Asso1904 1,000,000.003135G0T78 10/05/2022 962.00001/19/2018 999,530.00 2.409 2.443998,912.80 Federal National Mortgage Asso1926 1,500,000.003135G0T94 01/19/2023 2022.37502/08/2018 1,499,115.00 2.574 2.6101,498,191.52 Federal National Mortgage Asso2392 Call 1,000,000.003136G4R62 08/28/2025 1,1540.62508/28/2020 926,850.00 0.616 0.6251,000,000.00 Federal National Mortgage Asso2393 Call 1,000,000.003136G4S87 08/27/2025 1,1530.65008/27/2020 927,750.00 0.641 0.6501,000,000.00 Federal National Mortgage Asso2394 Call 1,500,000.003136G4Q97 08/27/2025 1,1530.65008/27/2020 1,391,505.00 0.641 0.6501,500,000.00 Federal National Mortgage Asso2397 Call 1,500,000.003136G4V59 08/27/2025 1,1530.62508/27/2020 1,390,380.00 0.616 0.6251,500,000.00 Federal National Mortgage Asso2412 Call 1,500,000.003136G44G5 09/22/2025 1,1790.51509/22/2020 1,382,910.00 0.507 0.5151,500,000.00 Federal National Mortgage Asso2413 Call 1,500,000.003136G43L5 09/30/2025 1,1870.55009/30/2020 1,383,810.00 0.542 0.5501,500,000.00 Federal National Mortgage Asso2415 Call 1,500,000.003136G44L4 09/25/2025 1,1820.60009/25/2020 1,386,525.00 0.591 0.6001,500,000.00 Federal National Mortgage Asso2460 2,000,000.003135G05Q2 08/05/2030 2,9570.87512/07/2020 1,654,700.00 1.139 1.1551,957,220.00 Federal National Mortgage Asso2463 Call 1,500,000.003135GAAS0 12/23/2030 3,0971.40012/23/2020 1,289,715.00 1.380 1.4001,500,000.00 Federal National Mortgage Asso2467 Call 1,000,000.003135G06Q1 12/30/2025 1,2780.64012/30/2020 912,810.00 0.597 0.6051,001,182.06 Tennessee Valley Authority1133 1,010,000.00880591EN8 08/15/2022 451.87512/14/2012 1,009,808.10 1.893 1.9201,009,949.38 Tennessee Valley Authority1508 1,000,000.00880591CJ9 11/01/2025 1,2196.75011/20/2015 1,114,490.00 2.807 2.8461,112,617.70 Tennessee Valley Authority1519 750,000.00880591ER9 09/15/2024 8072.87501/15/2016 746,632.50 2.564 2.600754,044.44 Tennessee Valley Authority1589 775,000.00880591CJ9 11/01/2025 1,2196.75004/18/2016 863,729.75 2.337 2.370875,739.62 Tennessee Valley Authority1703 1,490,000.00880591EN8 08/15/2022 451.87510/07/2016 1,489,716.90 1.538 1.5601,490,545.81 Tennessee Valley Authority1714 1,250,000.00880591CJ9 11/01/2025 1,2196.75011/10/2016 1,393,112.50 2.317 2.3501,414,419.68 Subtotal and Average 226,561,616.27 225,730,000.00 208,156,764.21 1.451 1.471 1,704 Portfolio CPA
AP
Run Date: 07/19/2022 - 16:21 FI (PRF_FI) 7.3.11
Report Ver. 7.3.11

9.b
Packet Pg. 151
June 30, 2022
Par Value
Days To
Maturity
Maturity
Date
Current
RateMarket Value
Fund ALL - Portfolio Listings
Investments by Fund Page 11
CUSIP Investment # Issuer
Purchase
Date Book Value
YTM
360
YTM
365
Treasury Securities (Notes)
U.S. Treasury1866 TB 1,500,000.00912828L57 09/30/2022 911.75010/06/2017 1,499,760.00 1.914 1.9411,499,322.53 U.S. Treasury1898 TB 1,500,000.00912828P38 01/31/2023 2141.75001/11/2018 1,492,800.00 2.308 2.3401,495,134.57 U.S. Treasury1905 TB 1,500,000.00912828N30 12/31/2022 1832.12501/22/2018 1,496,835.00 2.387 2.4201,500,011.37 U.S. Treasury1923 TB 1,500,000.00912828P38 01/31/2023 2141.75002/05/2018 1,492,800.00 2.560 2.5961,493,066.86 U.S. Treasury1925 TB 1,000,000.00912828P38 01/31/2023 2141.75002/08/2018 995,200.00 2.487 2.521995,774.33 U.S. Treasury1929 TB 1,000,000.00912828P79 02/28/2023 2421.50002/09/2018 991,720.00 2.534 2.570993,389.14 U.S. Treasury1934 TB 1,000,000.00912828P79 02/28/2023 2421.50002/15/2018 991,720.00 2.601 2.638992,980.68 U.S. Treasury2505 TB 1,500,000.0091282CBC4 12/31/2025 1,2790.37502/26/2021 1,367,055.00 0.731 0.7421,481,101.31 U.S. Treasury2516 TB 1,500,000.0091282CBQ3 02/28/2026 1,3380.50003/09/2021 1,367,175.00 0.819 0.8311,482,205.41 U.S. Treasury2587 TB 1,500,000.0091282CCP4 07/31/2026 1,4910.62509/24/2021 1,360,320.00 0.888 0.9011,483,492.08 Subtotal and Average 13,416,478.28 13,500,000.00 13,055,385.00 1.857 1.883 583 Municipal Bonds
Acalanes Union High School Dis2334 MUN 485,000.00004284ZY4 08/01/2022 312.90003/25/2020 485,354.05 1.677 1.700485,472.96 County of Alameda2173 MUN 290,000.00010878AS5 08/01/2026 1,4924.00012/05/2019 299,378.60 2.139 2.168310,087.34 Alameda County Joint Pws Auth.2005 MUN 505,000.00010831DS1 06/01/2025 1,0663.36512/24/2018 506,434.20 3.175 3.220506,910.91 Alameda County Joint Pws Auth.2566 MUN 110,000.00010831DT9 06/01/2026 1,4313.39508/13/2021 110,165.00 0.925 0.938120,321.00 Antelope Valley Community Coll1790 MUN 220,000.0003667PFL1 08/01/2022 312.60805/09/2017 220,079.20 2.266 2.298220,052.85 Antelope Valley Community Coll2069 MUN 500,000.0003667PFN7 08/01/2024 7623.02608/16/2019 494,925.00 1.876 1.902511,117.65 Bay Area Toll Authority2558 MUN 1,750,000.00072024XC1 04/01/2026 1,3701.07907/26/2021 1,594,040.00 0.739 0.7501,771,171.36 Beverly Hills Public Fing Auth2612 MUN 350,000.00088006KA8 06/01/2026 1,4311.14711/15/2021 320,379.50 1.183 1.200349,294.14 Beverly Hills Public Fing Auth2680 MUN 490,000.00088006KB6 06/01/2027 1,7961.32704/01/2022 441,068.60 2.810 2.850456,100.69 Beverly Hills Unified Sch Dist2682 MUN 920,000.00088023PL4 08/01/2026 1,4922.70004/13/2022 894,286.00 2.644 2.681920,681.44 Burlingame School District1548 MUN 470,000.00121457EQ4 08/01/2025 1,1276.23802/24/2016 490,318.10 3.557 3.606502,101.12 Burbank Unified School Distri.2570 MUN 1,000,000.0012082SDN1 08/01/2026 1,4921.36708/30/2021 904,160.00 0.947 0.9601,016,185.77 Cabrillo Community College Dis2119 MUN 2,000,000.00127109QD1 08/01/2027 1,8572.38510/08/2019 1,883,920.00 2.342 2.3752,000,000.00 Carlsbad Unified School Dist .1857 MUN 305,000.00142665DJ4 08/01/2026 1,4925.23409/27/2017 325,605.80 2.850 2.890330,591.43 CA Infrastructure -Econ Dev Bk2666 MUN 210,000.0013034AL73 10/01/2026 1,5531.03502/16/2022 189,445.20 2.224 2.254199,714.54 CA ST Dept of WTR Resources2633 MUN 180,000.0013067WRC8 12/01/2025 1,2490.79012/13/2021 164,853.00 1.301 1.320176,834.04 CA ST Dept of WTR Resources2645 MUN 300,000.0013067WRD6 12/01/2026 1,6140.92012/23/2021 268,572.00 1.430 1.450293,244.74 Chabot-Las Positas CCD2564 MUN 285,000.0015722TJR3 08/01/2026 1,4921.08008/16/2021 256,839.15 0.897 0.910286,929.28 Chabot-Las Positas CCD2589 MUN 125,000.0015722TJQ5 08/01/2025 1,1270.88009/29/2021 115,143.75 0.897 0.910124,885.55 City of Chula Vista2653 MUN 1,000,000.0017131RAU0 06/01/2026 1,4310.84001/10/2022 896,770.00 1.676 1.700967,670.78 Portfolio CPA
AP
Run Date: 07/19/2022 - 16:21 FI (PRF_FI) 7.3.11
Report Ver. 7.3.11

9.b
Packet Pg. 152
June 30, 2022
Par Value
Days To
Maturity
Maturity
Date
Current
RateMarket Value
Fund ALL - Portfolio Listings
Investments by Fund Page 12
CUSIP Investment # Issuer
Purchase
Date Book Value
YTM
360
YTM
365
Municipal Bonds
Calleguas Municipal Water Dist2544 MUN 550,000.0013124MCE3 07/01/2029 2,5571.86507/01/2021 482,779.00 1.425 1.445565,217.12 Calleguas Municipal Water Dist2646 MUN 600,000.0013124MCB9 07/01/2026 1,4611.09712/27/2021 546,132.00 1.233 1.250596,435.47 City of Corona2601 MUN 500,000.0021969AAJ1 05/01/2030 2,8612.24210/14/2021 431,290.00 2.052 2.081505,746.31 Cerritos Community College Dis1876 MUN 55,000.00156792GW7 08/01/2022 312.97111/30/2017 55,034.10 2.416 2.45055,022.41 Contra Costa Community College2103 MUN 400,000.00212204JJ1 08/01/2028 2,2232.21309/12/2019 358,428.00 2.071 2.100402,491.90 Contra Costa Community College2120 MUN 990,000.00212204JK8 08/01/2029 2,5882.26309/20/2019 871,130.70 2.505 2.539972,923.55 Contra Costa Community College2244 MUN 1,500,000.00212204JK8 08/01/2029 2,5882.26302/07/2020 1,319,895.00 2.100 2.1301,512,727.59 Contra Costa Community College2291 MUN 320,000.00212204JF9 08/01/2025 1,1271.91803/09/2020 301,936.00 1.128 1.143327,387.50 Contra Costa Community College2555 MUN 1,000,000.00212204LM1 08/01/2026 1,4921.30008/02/2021 900,260.00 0.764 0.7751,020,983.66 State of Delaware1952 MUN 1,500,000.002463807H6 07/01/2022 03.50005/03/2018 1,500,000.00 2.927 2.9671,500,000.00 Desert Community Clg Dist2611 MUN 200,000.00250375JX1 08/01/2027 1,8571.16911/12/2021 176,624.00 1.479 1.500196,784.39 Desert Sands Unif Sch District2635 MUN 880,000.00250433UA5 08/01/2026 1,4921.98212/16/2021 833,967.20 1.390 1.410899,819.66 Fremon Union High School Distr1646 MUN 525,000.00357172VA0 02/01/2026 1,3116.08006/28/2016 558,715.50 2.994 3.035575,014.12 Fremon Union High School Distr2595 MUN 235,000.00357172C52 08/01/2031 3,3182.02010/01/2021 200,708.80 1.825 1.851238,275.68 Fullerton School District1916 MUN 995,000.00359819DN6 08/01/2026 1,4923.16002/14/2018 980,721.75 3.028 3.070998,192.20 Fullerton School District1917 MUN 750,000.00359819DM8 08/01/2025 1,1273.04002/14/2018 742,050.00 2.959 3.000750,817.94 Fullerton School District2085 MUN 365,000.00359819DN6 08/01/2026 1,4923.16008/29/2019 359,762.25 1.913 1.940381,936.21 State of Georgia1613 MUN 500,000.00373384RU2 10/01/2022 923.57005/17/2016 502,410.00 1.878 1.904501,956.93 State of Georgia1645 MUN 365,000.00373384W69 02/01/2023 2153.25006/27/2016 365,810.30 1.898 1.925367,636.90 State of Georgia1666 MUN 1,825,000.003733844V5 02/01/2025 9462.37507/29/2016 1,780,798.50 1.972 1.9991,841,179.86 State of Georgia1691 MUN 385,000.00373384RU2 10/01/2022 923.57009/26/2016 386,855.70 1.630 1.653386,752.35 State of Georgia1775 MUN 250,000.00373384RX6 10/01/2025 1,1884.00004/10/2017 254,702.50 2.739 2.777258,798.97 State of Georgia1919 MUN 1,095,000.00373384RY4 10/01/2026 1,5534.31001/26/2018 1,133,029.35 2.979 3.0201,147,475.18 State of Georgia1945 MUN 200,000.00373384RY4 10/01/2026 1,5534.31003/19/2018 206,946.00 3.204 3.248207,812.82 State of Georgia1962 MUN 390,000.00373384SP2 10/01/2023 4573.74010/25/2018 393,147.30 3.093 3.136392,706.61 State of Georgia1967 MUN 350,000.00373385BU6 02/01/2027 1,6762.72010/31/2018 339,377.50 3.412 3.460339,743.06 State of Georgia1980 MUN 1,200,000.00373384PB6 11/01/2027 1,9495.01411/30/2018 1,286,556.00 3.649 3.7001,271,050.17 State of Georgia2086 MUN 1,500,000.00373384RV0 10/01/2023 4573.72008/29/2019 1,511,745.00 1.749 1.7741,535,038.55 State of Georgia2229 MUN 425,000.00373384RY4 10/01/2026 1,5534.31001/31/2020 439,760.25 1.837 1.863466,390.48 State of Georgia2332 MUN 1,000,000.00373384RW8 10/01/2024 8233.82003/23/2020 1,010,170.00 1.889 1.9151,040,881.14 City of Glendora2109 MUN 1,345,000.00378612AL9 06/01/2028 2,1622.26509/16/2019 1,236,956.15 2.318 2.3501,338,895.63 City of Glendora2137 MUN 400,000.00378612AL9 06/01/2028 2,1622.26510/02/2019 367,868.00 2.194 2.225400,852.27 Portfolio CPA
AP
Run Date: 07/19/2022 - 16:21 FI (PRF_FI) 7.3.11
Report Ver. 7.3.11

9.b
Packet Pg. 153
June 30, 2022
Par Value
Days To
Maturity
Maturity
Date
Current
RateMarket Value
Fund ALL - Portfolio Listings
Investments by Fund Page 13
CUSIP Investment # Issuer
Purchase
Date Book Value
YTM
360
YTM
365
Municipal Bonds
City of Glendora2590 MUN 1,365,000.00378612AJ4 06/01/2026 1,4312.10809/29/2021 1,290,771.30 1.075 1.0901,417,910.71 State of Hawaii1685 MUN 1,045,000.00419792DA1 10/01/2026 1,5533.15010/19/2016 1,033,034.75 2.431 2.4651,071,812.65 State of Hawaii1944 MUN 1,000,000.00419792NH5 10/01/2022 921.92103/20/2018 1,000,000.00 2.584 2.620998,361.68 State of Hawaii1947 MUN 1,500,000.00419792NH5 10/01/2022 921.92103/29/2018 1,500,000.00 2.663 2.7001,497,265.88 State of Hawaii1961 MUN 250,000.00419791YS1 02/01/2025 9465.23010/25/2018 261,135.00 3.363 3.410260,496.51 State of Hawaii1981 MUN 500,000.00419791YV4 02/01/2028 2,0415.48011/30/2018 544,940.00 3.687 3.739540,808.91 State of Hawaii1995 MUN 800,000.00419791YT9 02/01/2026 1,3115.33012/06/2018 850,704.00 3.304 3.350850,081.06 State of Hawaii2019 MUN 750,000.00419792NH5 10/01/2022 921.92101/17/2019 750,000.00 2.613 2.650748,705.15 City of Huntington Beach2560 MUN 1,000,000.00446201AE5 06/15/2026 1,4451.34408/12/2021 896,690.00 0.909 0.9211,016,282.46 City of Huntington Beach2562 MUN 1,000,000.00446201AE5 06/15/2026 1,4451.34408/13/2021 896,690.00 0.927 0.9391,015,580.62 City of La Habra2660 MUN 500,000.00503433AK0 08/01/2031 3,3182.67302/07/2022 432,930.00 2.638 2.675499,904.22 Los Altos Elementary Sch Distr2681 MUN 500,000.00544290JH3 10/01/2024 8231.00003/24/2022 476,900.00 2.522 2.557483,107.88 City of Los Angeles1748 MUN 1,000,000.00544351KS7 09/01/2023 4272.64002/14/2017 995,990.00 2.784 2.8231,000,317.18 City of Los Angeles1879 MUN 1,090,000.00544351KR9 09/01/2022 622.44012/11/2017 1,090,991.90 2.355 2.3881,090,088.10 City of Los Angeles1969 MUN 295,000.00544351NP0 09/01/2026 1,5233.30011/02/2018 292,846.50 3.530 3.579292,015.99 City of Los Angeles2008 MUN 1,000,000.00544351MS5 09/01/2026 1,5233.50001/07/2019 1,000,380.00 3.077 3.1191,013,970.59 City of Los Angeles2200 MUN 840,000.00544351NQ8 09/01/2027 1,8883.40001/06/2020 831,314.40 2.360 2.393879,698.00 City of Los Angeles2213 MUN 985,000.00544351LQ0 09/01/2029 2,6193.05001/22/2020 936,400.10 2.413 2.4461,022,741.13 City of Los Angeles2283 MUN 1,000,000.00544351KV0 09/01/2026 1,5233.15003/05/2020 986,950.00 1.519 1.5411,063,563.78 Los Angeles Community College2487 MUN 1,000,000.0054438CYN6 08/01/2030 2,9531.80601/28/2021 862,490.00 1.432 1.4521,026,646.74 Los Angeles Community College2592 MUN 250,000.0054438CYL0 08/01/2026 1,4921.17409/30/2021 227,420.00 1.064 1.078250,943.55 Los Angeles Community College2614 MUN 1,500,000.0054438CYL0 08/01/2026 1,4921.17411/15/2021 1,364,520.00 1.233 1.2501,495,475.59 Los Angeles Community College2642 MUN 275,000.0054438CYL0 08/01/2026 1,4921.17412/21/2021 250,162.00 1.282 1.300273,628.96 Los Angeles Cnty Met Tran Auth2641 MUN 1,000,000.005447122K7 06/01/2025 1,0665.13012/21/2021 1,049,110.00 1.085 1.1001,115,107.66 Los Angeles Dept. of WTR & PWR1949 MUN 1,500,000.00544495VX9 07/01/2027 1,8265.51603/29/2018 1,618,365.00 3.254 3.3001,642,163.27 Los Angeles Dept. of WTR & PWR1965 MUN 425,000.00544495VX9 07/01/2027 1,8265.51610/29/2018 458,536.75 3.600 3.650458,714.40 Los Angeles Dept. of WTR & PWR1975 MUN 300,000.00544525NW4 07/01/2022 05.18111/07/2018 300,000.00 3.166 3.210300,000.00 State of Massachusetts2227 MUN 250,000.0057582PUT5 05/01/2029 2,4964.91001/30/2020 261,032.50 2.331 2.363288,869.99 State of Massachusetts2543 MUN 1,000,000.0057582PUT5 05/01/2029 2,4964.91007/01/2021 1,044,130.00 1.484 1.5051,219,053.40 State of Massachusetts2684 MUN 1,000,000.0057582PUS7 05/01/2027 1,7654.76004/05/2022 1,040,060.00 2.968 3.0101,077,871.19 State of Maryland1943 MUN 1,280,000.005741925D8 03/01/2023 2434.40003/20/2018 1,292,979.20 2.633 2.6701,293,740.34 State of Maryland1958 MUN 1,690,000.005741926L9 08/01/2024 7624.20010/19/2018 1,724,357.70 3.413 3.4611,713,403.10 Portfolio CPA
AP
Run Date: 07/19/2022 - 16:21 FI (PRF_FI) 7.3.11
Report Ver. 7.3.11

9.b
Packet Pg. 154
June 30, 2022
Par Value
Days To
Maturity
Maturity
Date
Current
RateMarket Value
Fund ALL - Portfolio Listings
Investments by Fund Page 14
CUSIP Investment # Issuer
Purchase
Date Book Value
YTM
360
YTM
365
Municipal Bonds
State of Maryland2184 MUN 500,000.005741926N5 08/01/2025 1,1274.35012/16/2019 516,320.00 2.089 2.118532,258.52 State of Maryland2581 MUN 245,000.005741926N5 08/01/2025 1,1274.35009/23/2021 252,996.80 0.690 0.700272,153.85 State of Maryland - Dept/Trans2134 MUN 1,000,000.00574204WH2 06/15/2023 3494.45010/15/2019 1,012,700.00 1.893 1.9201,023,230.42 State of Michigan2002 MUN 825,000.005946108C4 05/15/2026 1,4143.85012/21/2018 825,635.25 3.452 3.500834,760.75 City of Manhattan Beach2647 MUN 650,000.00562784AM0 01/01/2032 3,4712.34101/05/2022 566,462.00 2.129 2.159659,087.35 Menlo Park City School Dist.2104 MUN 1,000,000.00586840ND8 07/01/2027 1,8262.21410/08/2019 940,770.00 2.183 2.2141,000,000.00 Marin Community College Dist.1858 MUN 500,000.0056781RGU5 08/01/2027 1,8573.27209/28/2017 492,485.00 2.791 2.830509,738.82 Marin Community College Dist.1973 MUN 120,000.0056781RGT8 08/01/2026 1,4923.17211/05/2018 118,484.40 3.452 3.500118,600.07 Marin Community College Dist.2084 MUN 250,000.0056781RJL2 08/01/2027 1,8573.33008/29/2019 246,907.50 1.874 1.900266,795.32 Marin Community College Dist.2287 MUN 310,000.0056781RJJ7 08/01/2025 1,1275.00003/06/2020 324,210.40 1.193 1.210344,961.98 Marin Community College Dist.2495 MUN 1,000,000.0056781RKH9 08/01/2030 2,9531.45102/25/2021 832,710.00 1.431 1.4511,000,000.00 Marin Community College Dist.2499 MUN 710,000.0056781RKH9 08/01/2030 2,9531.45102/25/2021 591,224.10 1.470 1.490707,870.63 Marin Community College Dist.2568 MUN 1,000,000.0056781RKU0 08/01/2026 1,4920.89309/14/2021 901,600.00 0.880 0.8931,000,000.00 Marin Community College Dist.2588 MUN 285,000.0056781RKD8 08/01/2026 1,4920.67909/29/2021 254,658.90 1.025 1.040280,911.51 Mt. San Antonio Community Coll1489 MUN 1,335,000.00623040GX4 08/01/2023 3964.10310/26/2015 1,348,363.35 2.490 2.5251,355,600.60 Mt. San Antonio Community Coll2208 MUN 230,000.00623040KQ4 08/01/2029 2,5882.56902/04/2020 211,825.40 2.533 2.569230,000.00 Mt. San Antonio Community Coll2661 MUN 785,000.00623040KX9 08/01/2030 2,9532.64902/07/2022 716,249.70 2.173 2.203810,670.89 State of Mississippi1968 MUN 1,500,000.00605581LM7 11/01/2026 1,5843.75111/07/2018 1,515,176.40 3.377 3.4241,518,392.69 State of Mississippi1972 MUN 500,000.00605581LM7 11/01/2026 1,5843.75111/07/2018 505,058.80 3.401 3.449505,655.95 State of Mississippi2087 MUN 750,000.00605581HL4 12/01/2024 8842.98708/30/2019 745,147.50 1.745 1.770770,969.02 State of Mississippi2090 MUN 500,000.00605581HL4 12/01/2024 8842.98709/04/2019 496,765.00 1.783 1.807513,531.80 State of Mississippi2096 MUN 150,000.006055805W5 11/01/2025 1,2194.68109/09/2019 156,271.50 1.888 1.914163,025.59 State of Mississippi2189 MUN 250,000.006055805V7 11/01/2024 8544.51112/19/2019 256,950.00 2.079 2.108263,253.25 State of Mississippi2329 MUN 1,000,000.00605581LJ4 11/01/2023 4883.40803/20/2020 1,005,250.00 1.626 1.6491,022,685.90 State of Mississippi2626 MUN 1,000,000.00605581QR1 10/01/2031 3,3792.11712/09/2021 859,560.00 1.992 2.0201,008,089.30 State of Mississippi2629 MUN 250,000.00605581LL9 11/01/2025 1,2193.64612/06/2021 252,382.50 1.080 1.095270,752.31 City of Napa Solid Waste2055 MUN 595,000.00630337AL7 08/01/2024 7622.20008/08/2019 580,969.90 1.968 1.996597,394.27 New York St Envrnmntl Facs2007 MUN 450,000.0064985HWS2 07/15/2024 7452.12001/04/2019 437,935.50 2.860 2.900443,430.50 New York State Urban Dev Corp.2097 MUN 700,000.006500357D4 03/15/2026 1,3533.07009/09/2019 685,832.00 2.071 2.100723,396.75 New York State Urban Dev Corp.2683 MUN 1,000,000.00650036AV8 03/15/2027 1,7181.49603/28/2022 901,500.00 2.777 2.816942,392.62 New York State Envrnmntl Corp2022 MUN 1,000,000.00649791CN8 03/01/2023 2434.69001/22/2019 1,011,160.00 2.752 2.7911,011,878.30 New York State Envrnmntl Corp2024 MUN 1,000,000.00649791CN8 03/01/2023 2434.69002/08/2019 1,011,160.00 2.751 2.7901,011,893.37 Portfolio CPA
AP
Run Date: 07/19/2022 - 16:21 FI (PRF_FI) 7.3.11
Report Ver. 7.3.11

9.b
Packet Pg. 155
June 30, 2022
Par Value
Days To
Maturity
Maturity
Date
Current
RateMarket Value
Fund ALL - Portfolio Listings
Investments by Fund Page 15
CUSIP Investment # Issuer
Purchase
Date Book Value
YTM
360
YTM
365
Municipal Bonds
New York State Envrnmntl Corp2146 MUN 1,500,000.00649791PQ7 02/15/2025 9602.12010/31/2019 1,453,710.00 2.063 2.0911,501,092.66 New York State Envrnmntl Corp2224 MUN 580,000.00649791PS3 02/15/2027 1,6902.36001/30/2020 550,536.00 1.933 1.960589,967.20 New York State Envrnmntl Corp2575 MUN 1,500,000.00649791PR5 02/15/2026 1,3252.26009/13/2021 1,440,390.00 0.794 0.8051,577,502.81 New York State Envrnmntl Corp2677 MUN 1,000,000.00649791PS3 02/15/2027 1,6902.36003/16/2022 949,200.00 2.325 2.3581,000,075.25 New York State Envrnmntl Corp2678 MUN 1,000,000.00649791PS3 02/15/2027 1,6902.36003/21/2022 949,200.00 2.367 2.400998,245.44 City of Oakland2293 MUN 1,500,000.00672240WY0 01/15/2030 2,7552.11003/09/2020 1,308,495.00 1.436 1.4561,568,561.79 City of Oakland2307 MUN 1,500,000.00672240WY0 01/15/2030 2,7552.11003/13/2020 1,308,495.00 1.638 1.6611,546,652.14 City of Oakland2313 MUN 1,080,000.00672240WY0 01/15/2030 2,7552.11003/16/2020 942,116.40 2.247 2.2791,067,651.03 City of Oakland2316 MUN 1,500,000.00672240WX2 01/15/2029 2,3902.07003/16/2020 1,332,735.00 2.151 2.1811,490,003.46 City of Oakland Pension2630 MUN 450,000.00672319CF5 12/15/2025 1,2634.67612/06/2021 461,956.50 1.562 1.584496,391.93 Ohlone Community College Distr2165 MUN 600,000.00677765GY9 08/01/2027 1,8572.23711/22/2019 560,040.00 2.271 2.303598,152.16 Ohlone Community College Distr2175 MUN 280,000.00677765GY9 08/01/2027 1,8572.23712/06/2019 261,352.00 2.327 2.360278,404.21 Ohlone Community College Distr2179 MUN 970,000.00677765HA0 08/01/2029 2,5882.33712/11/2019 882,923.10 2.382 2.415965,224.08 Ohlone Community College Distr2341 MUN 1,185,000.00677765GZ6 08/01/2028 2,2232.28705/08/2020 1,091,752.35 1.849 1.8751,212,370.38 State of Ohio1688 MUN 800,000.00677522JB1 05/01/2023 3042.11009/13/2016 793,840.00 1.764 1.788802,010.05 State of Ohio1742 MUN 2,000,000.00677522JB1 05/01/2023 3042.11001/31/2017 1,984,600.00 2.485 2.5201,993,709.33 State of Ohio1832 MUN 900,000.006775207G7 04/01/2024 6404.97106/30/2017 925,101.00 2.416 2.450936,380.36 State of Ohio2308 MUN 500,000.00677521CT1 09/01/2026 1,5235.26203/13/2020 533,590.00 1.710 1.734569,226.80 Orange Cnty Water District2578 MUN 315,000.0068442CCY0 08/15/2025 1,1412.09509/16/2021 303,556.05 0.690 0.700328,509.06 Orchard School District1910 MUN 200,000.00685585FD8 08/01/2027 1,8573.12501/25/2018 196,744.00 3.208 3.253198,913.05 State of Oregon1974 MUN 500,000.0068607LXQ5 06/01/2027 1,7965.89211/06/2018 534,065.00 3.516 3.565541,839.63 State of Oregon2003 MUN 300,000.0068608USE7 08/01/2025 1,1272.87712/21/2018 300,066.00 3.156 3.200297,323.41 State of Oregon2015 MUN 445,000.0068607LXQ5 06/01/2027 1,7965.89201/16/2019 475,317.85 3.537 3.587488,214.95 State of Oregon2223 MUN 570,000.0068609TDT2 05/01/2024 6703.22701/30/2020 571,584.60 1.641 1.664585,696.71 State of Oregon2230 MUN 495,000.0068607LXQ5 06/01/2027 1,7965.89201/31/2020 528,724.35 2.583 2.619567,016.87 State of Oregon2266 MUN 1,000,000.0068607LXQ5 06/01/2027 1,7965.89202/24/2020 1,068,130.00 2.482 2.5171,150,737.45 State of Oregon2310 MUN 350,000.0068609BXT9 05/01/2027 1,7653.08003/13/2020 345,341.50 1.302 1.320378,305.04 State of Oregon2378 MUN 355,000.0068609TVS4 06/01/2030 2,8921.67207/02/2020 304,057.50 1.433 1.452360,715.01 State of Oregon2542 MUN 870,000.0068608KA24 08/01/2030 2,9535.33207/01/2021 947,551.80 1.943 1.9701,085,436.83 State of Oregon2549 MUN 1,225,000.0068609TU30 08/01/2028 2,2231.48407/08/2021 1,084,872.25 1.134 1.1501,248,831.43 State of Oregon2584 MUN 265,000.0068609TT81 08/01/2025 1,1270.80309/24/2021 246,296.30 0.690 0.700265,827.10 State of Oregon2624 MUN 250,000.0068609TZT8 08/01/2026 1,4920.98411/19/2021 228,670.00 1.292 1.310246,781.12 Portfolio CPA
AP
Run Date: 07/19/2022 - 16:21 FI (PRF_FI) 7.3.11
Report Ver. 7.3.11

9.b
Packet Pg. 156
June 30, 2022
Par Value
Days To
Maturity
Maturity
Date
Current
RateMarket Value
Fund ALL - Portfolio Listings
Investments by Fund Page 16
CUSIP Investment # Issuer
Purchase
Date Book Value
YTM
360
YTM
365
Municipal Bonds
State of Oregon2627 MUN 900,000.0068609T3M8 11/01/2031 3,4102.03711/26/2021 772,308.00 2.020 2.048899,086.46 State of Oregon2679 MUN 1,000,000.0068607LXQ5 06/01/2027 1,7965.89204/01/2022 1,068,130.00 3.259 3.3041,116,030.16 City of Pacifica2138 MUN 1,015,000.0069511AAS3 06/01/2025 1,0662.56310/23/2019 990,538.50 2.469 2.5031,016,610.77 City of Pacifica2139 MUN 580,000.0069511AAT1 06/01/2026 1,4312.66310/23/2019 562,762.40 2.611 2.647580,309.51 Pasadena CA Public Finance Aut1985 MUN 665,000.00702274CP4 12/01/2023 5183.43812/06/2018 668,597.65 3.205 3.250666,621.12 Pasadena CA Public Finance Aut2573 MUN 120,000.0070227RBM1 05/01/2026 1,4001.98409/09/2021 112,796.40 0.903 0.915124,802.60 Pasadena CA Public Finance Aut2615 MUN 550,000.00702274CS8 12/01/2026 1,6143.50012/01/2021 554,757.50 1.380 1.400599,098.32 Polomar Community Clge Distri2582 MUN 1,000,000.00697511FU2 08/01/2026 1,4921.03110/13/2021 905,730.00 1.016 1.0311,000,000.00 Polomar Community Clge Distri2676 MUN 335,000.00697511FD0 08/01/2026 1,4921.19903/15/2022 305,533.40 2.288 2.320320,495.22 Redondo Beach Unified School D2388 MUN 750,000.00757710UE6 08/01/2030 2,9531.66008/06/2020 630,157.50 1.439 1.459761,316.22 State of Rhode Island2192 MUN 260,000.0076222RYN6 01/15/2025 9292.00012/20/2019 251,888.00 2.231 2.262259,717.44 State of Rhode Island2219 MUN 1,500,000.0076222RXB3 04/01/2028 2,1013.25001/27/2020 1,485,720.00 2.077 2.1061,590,133.59 State of Rhode Island2239 MUN 550,000.0076222RXB3 04/01/2028 2,1013.25002/06/2020 544,764.00 1.990 2.018585,737.65 Riverside Cmnty College Distt.2596 MUN 1,365,000.0076886PJP9 08/01/2026 1,4921.12410/04/2021 1,236,239.55 1.006 1.0201,370,637.28 Rancho Santiago Comm College D2522 MUN 450,000.00752147HH4 09/01/2024 7930.63403/29/2021 423,027.00 0.625 0.633450,000.00 Redwood City School District2130 MUN 1,000,000.00757889EH9 08/01/2027 1,8572.28410/16/2019 936,000.00 2.252 2.2841,000,000.00 Redwood City School District2253 MUN 1,095,000.00757889EG1 08/01/2026 1,4922.15902/13/2020 1,038,060.00 1.727 1.7511,112,168.22 City of Santa Ana2603 MUN 175,000.00801139AE6 08/01/2026 1,4921.17610/18/2021 155,519.00 1.223 1.240174,556.57 Santa Barbara Unified School D2385 MUN 490,000.00801315KU5 08/01/2029 2,5881.65307/21/2020 425,741.40 1.483 1.504494,801.92 San Bernardino Cmty College Di2166 MUN 1,500,000.00796720NC0 08/01/2028 2,2232.59012/12/2019 1,404,885.00 2.554 2.5901,500,000.00 San Bernardino Cmty College Di2365 MUN 2,000,000.00796720NV8 08/01/2029 2,5881.84807/07/2020 1,752,320.00 1.822 1.8482,000,000.00 County of Santa Clara1897 MUN 1,340,000.00801546PH9 08/01/2023 3962.50001/11/2018 1,334,171.00 2.436 2.4701,340,402.40 County of Santa Clara1899 MUN 1,460,000.00801546PJ5 08/01/2024 7622.68001/12/2018 1,445,531.40 2.643 2.6801,460,000.00 Santa Clarita Community Colleg2557 MUN 1,250,000.00801686TF3 08/01/2026 1,4921.14608/02/2021 1,141,575.00 0.742 0.7521,269,794.75 Santa Clara Valley Water Dist.2181 MUN 1,555,000.0080168ACV7 06/01/2028 2,1622.43412/12/2019 1,452,509.95 2.416 2.4501,553,663.84 Santa Cruz County Capital Fin.1906 MUN 465,000.0080181PCT2 06/01/2024 7012.50001/25/2018 458,764.35 2.968 3.010460,887.62 Santa Cruz County Capital Fin.1907 MUN 465,000.0080181PCU9 06/01/2025 1,0662.75001/25/2018 458,494.65 3.008 3.050461,374.11 Santa Cruz County Capital Fin.1908 MUN 470,000.0080181PCV7 06/01/2026 1,4313.00001/25/2018 462,935.90 3.107 3.150467,890.30 Santa Cruz County Capital Fin.1909 MUN 280,000.0080181PCW5 06/01/2027 1,7963.00001/25/2018 273,028.00 3.205 3.250277,286.40 Santa Cruz MET Transit Dist.2671 MUN 1,000,000.00801747AF3 08/01/2027 1,8572.47003/03/2022 938,330.00 2.030 2.0581,019,690.35 San Diego Unified Sch District2602 MUN 1,000,000.00797356DL3 07/01/2031 3,2871.98410/21/2021 853,060.00 1.824 1.8501,010,982.58 San Diego Unified Sch District2606 MUN 900,000.00797356DL3 07/01/2031 3,2871.98410/23/2021 767,754.00 2.024 2.053894,983.94 Portfolio CPA
AP
Run Date: 07/19/2022 - 16:21 FI (PRF_FI) 7.3.11
Report Ver. 7.3.11

9.b
Packet Pg. 157
June 30, 2022
Par Value
Days To
Maturity
Maturity
Date
Current
RateMarket Value
Fund ALL - Portfolio Listings
Investments by Fund Page 17
CUSIP Investment # Issuer
Purchase
Date Book Value
YTM
360
YTM
365
Municipal Bonds
San Diego Unified Sch District2617 MUN 270,000.00797356DH2 07/01/2028 2,1921.59911/17/2021 239,954.40 1.712 1.736267,908.41 San Diego Community College Di2550 MUN 255,000.00797272QS3 08/01/2027 1,8572.40707/09/2021 240,230.40 1.007 1.021272,376.40 San Diego Community College Di2639 MUN 1,980,000.00797272RN3 08/01/2026 1,4921.44512/28/2021 1,829,143.80 1.193 1.2101,998,417.95 San Diego Community College Di2651 MUN 500,000.00797272RT0 08/01/2031 3,3182.11301/10/2022 424,015.00 2.120 2.150498,484.26 San Diego Regl Trans Commissio2632 MUN 200,000.00797400MR6 04/01/2026 1,3701.03612/08/2021 183,328.00 1.292 1.310198,006.32 San Diego Cnty Wtr Authority2580 MUN 875,000.00797412DN0 05/01/2026 1,4000.97109/17/2021 795,541.25 0.887 0.900877,322.12 San Diego Cnty Wtr Authority2600 MUN 210,000.00797412DM2 05/01/2025 1,0350.74310/08/2021 194,594.40 0.838 0.850209,373.93 San Diego Cnty Wtr Authority2604 MUN 250,000.00797412DN0 05/01/2026 1,4000.97110/20/2021 227,297.50 1.134 1.150248,331.05 San Diego Cnty Wtr Authority2623 MUN 750,000.00797412DN0 05/01/2026 1,4000.97111/19/2021 681,892.50 1.282 1.300740,832.30 San Dieguito Union High Sch Di2536 MUN 430,000.00797508JW9 08/01/2026 1,4921.07406/09/2021 394,004.70 1.059 1.074430,000.00 San Dieguito Union High Sch Di2537 MUN 435,000.00797508JX7 08/01/2027 1,8571.37206/09/2021 392,913.75 1.353 1.372435,000.00 San Dieguito Union High Sch Di2674 MUN 435,000.00797508HF8 08/01/2026 1,4921.86003/11/2022 411,514.35 2.070 2.099430,960.94 Sequoia Union High School Dist2320 MUN 400,000.00817409N35 07/01/2025 1,0961.73503/18/2020 380,264.00 1.381 1.400403,859.17 Sequoia Union High School Dist2531 MUN 250,000.00817409N76 07/01/2029 2,5572.10304/30/2021 222,222.50 1.658 1.681256,854.81 City & County of San Francisco1509 MUN 1,000,000.00797646NC6 06/15/2025 1,0805.45011/27/2015 1,059,850.00 3.067 3.1101,059,432.97 City & County of San Francisco1711 MUN 2,105,000.00797646T48 06/15/2025 1,0802.29011/01/2016 2,040,081.80 2.219 2.2492,107,236.83 City & County of San Francisco1712 MUN 245,000.00797646T55 06/15/2026 1,4452.39011/01/2016 235,111.80 2.376 2.410244,825.76 City & County of San Francisco1839 MUN 230,000.00797646T48 06/15/2025 1,0802.29007/14/2017 222,906.80 2.682 2.720227,384.56 City & County of San Francisco2014 MUN 1,420,000.00797646ND4 06/15/2026 1,4455.60001/16/2019 1,537,973.60 3.304 3.3501,531,059.09 City & County of San Francisco2148 MUN 1,120,000.007976466C5 06/15/2029 2,5412.10010/31/2019 1,020,331.20 2.337 2.3691,101,273.78 San Francisco Cmnty Facs Dist1937 MUN 680,000.0079772EBC2 09/01/2027 1,8883.25003/02/2018 655,479.20 3.451 3.499672,600.35 San Francisco Cmnty Facs Dist2132 MUN 350,000.0079772ECL1 09/01/2029 2,6193.64810/11/2019 337,421.00 2.398 2.431376,966.71 San Francisco Cmnty Facs Dist2309 MUN 130,000.0079772ECJ6 09/01/2027 1,8883.46803/13/2020 126,089.60 1.577 1.599141,783.46 San Francisco Cmnty Facs Dist2571 MUN 300,000.0079772ECF4 09/01/2024 7933.10808/30/2021 295,752.00 0.741 0.752315,140.67 San Francisco Cmnty Facs Dist2608 MUN 575,000.0079772EDY2 09/01/2031 3,3492.59111/03/2021 498,979.25 2.305 2.337586,895.30 San Francisco Cmnty Facs Dist2628 MUN 1,295,000.0079772EDA4 09/01/2026 1,5232.23611/29/2021 1,208,338.60 1.425 1.4451,336,069.40 SF Bay Area Rapid Transit Dist2029 MUN 200,000.00797669XW3 07/01/2023 3652.62102/25/2019 199,340.00 2.672 2.710199,832.18 SF Bay Area Rapid Transit Dist2572 MUN 500,000.00797669ZJ0 07/01/2024 7311.97109/08/2021 488,020.00 0.419 0.425515,363.81 SF Bay Area Rapid Transit Dist2636 MUN 480,000.00797669ZR2 07/01/2031 3,2872.76812/16/2021 443,923.20 1.846 1.872515,291.28 SF Bay Area Rapid Transit Dist2638 MUN 600,000.00797669XW3 07/01/2023 3652.62112/20/2021 598,020.00 0.572 0.580612,172.05 Sierra Joint Com. College Dist2501 MUN 585,000.00826239GD1 08/01/2029 2,5881.44503/09/2021 515,472.75 1.425 1.445585,000.00 Sierra Joint Com. College Dist2535 MUN 500,000.00826239GD1 08/01/2029 2,5881.44505/27/2021 440,575.00 1.461 1.481498,787.36 Portfolio CPA
AP
Run Date: 07/19/2022 - 16:21 FI (PRF_FI) 7.3.11
Report Ver. 7.3.11

9.b
Packet Pg. 158
June 30, 2022
Par Value
Days To
Maturity
Maturity
Date
Current
RateMarket Value
Fund ALL - Portfolio Listings
Investments by Fund Page 18
CUSIP Investment # Issuer
Purchase
Date Book Value
YTM
360
YTM
365
Municipal Bonds
City of San Jose2656 MUN 350,000.00798135E96 09/01/2026 1,5232.50001/28/2022 339,741.50 1.686 1.710361,030.40 San Jose Financing Authority2622 MUN 345,000.00798153NF5 06/01/2026 1,4311.31111/18/2021 314,888.40 1.459 1.480342,798.61 San Jose Evergreen Cmnty Colll1966 MUN 315,000.00798189PK6 09/01/2027 1,8883.72810/29/2018 317,491.65 3.676 3.727315,000.00 San Jose Evergreen Cmnty Colll2105 MUN 500,000.00798189QA7 08/01/2028 2,2232.35010/01/2019 465,195.00 2.317 2.350500,000.00 San Jose Unified School Dist.1435 MUN 580,000.00798186C83 08/01/2023 3962.50001/29/2015 577,111.60 2.663 2.700578,883.77 San Jose Unified School Dist.2518 MUN 1,000,000.00798186N81 08/01/2025 1,1270.55803/15/2021 920,930.00 0.739 0.750994,182.36 Santa Monica Cmnty College Dis2025 MUN 215,000.00802385QW7 08/01/2022 312.90802/19/2019 215,154.80 2.714 2.752215,026.75 Santa Monica Cmnty College Dis2091 MUN 315,000.00802385RC0 08/01/2028 2,2233.47209/05/2019 309,307.95 1.972 2.000340,717.68 Santa Monica Cmnty College Dis2481 MUN 570,000.00802385RV8 08/01/2030 2,9531.69601/22/2021 481,387.80 1.499 1.520577,525.57 Santa Monica Cmnty College Dis2482 MUN 600,000.00802385RT3 08/01/2028 2,2231.49601/22/2021 525,426.00 1.085 1.100613,842.79 Santa Monica-Malibu USD2561 MUN 650,000.00802498VW2 07/01/2026 1,4610.98908/12/2021 589,160.00 0.877 0.890652,511.61 Santa Monica-Malibu USD2637 MUN 215,000.00802498ZA6 08/01/2026 1,4920.84912/20/2021 193,259.20 1.193 1.210211,925.12 San Mateo Cnty Comm. College D2521 MUN 2,000,000.00799038NP5 09/01/2024 7930.50004/14/2021 1,884,520.00 0.444 0.4502,002,140.67 San Mateo Cnty Comm. College D2523 MUN 1,500,000.00799038NP5 09/01/2024 7930.50004/14/2021 1,413,390.00 0.444 0.4501,501,605.51 San Mateo Foster City SCH Dist1902 MUN 1,000,000.00799017UW6 09/01/2025 1,1582.69901/16/2018 982,620.00 2.786 2.825996,424.26 San Mateo Foster City SCH Dist1940 MUN 1,000,000.00799017UW6 09/01/2025 1,1582.69903/09/2018 982,620.00 2.959 3.000991,513.52 San Mateo Foster City SCH Dist2153 MUN 1,360,000.00799017WD6 09/01/2028 2,2542.23711/07/2019 1,264,990.40 2.447 2.4801,341,727.27 San Mateo Foster City SCH Dist2178 MUN 1,565,000.00799017VM7 09/01/2028 2,2542.54212/11/2019 1,481,882.85 2.311 2.3431,582,183.40 San Mateo Foster City SCH Dist2567 MUN 500,000.00799017XW3 09/01/2026 1,5230.92509/21/2021 453,880.00 0.912 0.925500,000.00 San Mateo Foster City SCH Dist2585 MUN 175,000.00799055QV3 08/01/2026 1,4921.79909/27/2021 165,277.00 0.897 0.910181,199.67 San Mateo Foster City SCH Dist2591 MUN 1,320,000.00799055ME5 08/01/2026 1,4926.00009/29/2021 1,417,719.60 2.297 2.3291,506,019.98 Solano Cnty Community Clg Dist2176 MUN 1,150,000.0083412PFQ0 08/01/2028 2,2232.71712/09/2019 1,090,349.50 2.462 2.4961,163,782.15 Solano Cnty Community Clg Dist2579 MUN 750,000.0083412PHQ8 08/01/2026 1,4921.02510/06/2021 679,657.50 1.011 1.025750,000.00 Solano Cnty Community Clg Dist2583 MUN 200,000.0083412PGZ9 08/01/2026 1,4921.02510/06/2021 181,242.00 0.887 0.900200,994.69 Solano Cnty Community Clg Dist2594 MUN 390,000.0083412PHE5 08/01/2031 3,3181.86110/06/2021 329,475.90 1.948 1.975386,320.21 Solano Cnty Community Clg Dist2597 MUN 750,000.0083412PHU9 08/01/2030 2,9531.76110/06/2021 643,342.50 1.834 1.860744,480.17 Solano Cnty Community Clg Dist2598 MUN 825,000.0083412PHW5 08/01/2031 3,3181.86110/06/2021 696,968.25 1.879 1.905821,984.01 Solano Cnty Community Clg Dist2649 MUN 350,000.0083412PHB1 08/01/2028 2,2231.47901/07/2022 308,458.50 1.775 1.800343,576.83 Sonoma Cnty Jr. College Distr.2577 MUN 155,000.00835569GT5 08/01/2026 1,4922.44709/15/2021 149,613.75 0.843 0.855164,847.12 South Pasadena Unified School1914 MUN 180,000.00839278JM1 08/01/2027 1,8573.00002/15/2018 174,717.00 3.057 3.100179,210.32 South Pasadena Unified School2161 MUN 370,000.00839278KC1 08/01/2029 2,5885.00012/12/2019 396,921.20 2.598 2.634424,439.60 South Pasadena Unified School2162 MUN 250,000.00839278KB3 08/01/2028 2,2235.00012/12/2019 267,135.00 2.549 2.584282,737.29 Portfolio CPA
AP
Run Date: 07/19/2022 - 16:21 FI (PRF_FI) 7.3.11
Report Ver. 7.3.11

9.b
Packet Pg. 159
June 30, 2022
Par Value
Days To
Maturity
Maturity
Date
Current
RateMarket Value
Fund ALL - Portfolio Listings
Investments by Fund Page 19
CUSIP Investment # Issuer
Purchase
Date Book Value
YTM
360
YTM
365
Municipal Bonds
South Pasadena Unified School2163 MUN 145,000.00839278KA5 08/01/2027 1,8575.00012/12/2019 154,063.95 2.500 2.534161,428.73 South Pasadena Unified School2164 MUN 390,000.00839278JZ2 08/01/2026 1,4925.00012/12/2019 411,602.10 2.378 2.411427,882.44 San Rafael City High Sch Distr2150 MUN 1,755,000.00799289MR1 08/01/2024 7621.96511/13/2019 1,706,211.00 1.938 1.9651,755,000.00 San Ramon Vly Unif Sch Dist.2605 MUN 1,500,000.007994082K4 08/01/2030 2,9531.91411/03/2021 1,290,165.00 1.805 1.8301,509,345.65 Sunnyvale Elementary Sch Distr2100 MUN 135,000.00867578UT1 09/01/2028 2,2542.19009/19/2019 123,877.35 2.157 2.187135,000.00 Sunnyvale Elementary Sch Distr2101 MUN 135,000.00867578US3 09/01/2027 1,8882.09009/19/2019 125,537.85 2.061 2.090135,000.00 Tracy Unified School District2493 MUN 500,000.00892404CN2 08/01/2029 2,5881.64402/08/2021 435,780.00 1.437 1.457506,197.51 Temecula Valley Unified School2539 MUN 250,000.0087970GPS0 08/01/2028 2,2231.50306/16/2021 220,482.50 1.482 1.503250,000.00 Temecula Valley Unified School2569 MUN 355,000.0087970GPQ4 08/01/2026 1,4921.05108/27/2021 323,010.95 0.887 0.900357,135.64 State of Tennessee1673 MUN 1,000,000.00880541XY8 08/01/2026 1,4922.11608/25/2016 953,490.00 1.923 1.9501,006,129.11 State of Tennessee1674 MUN 1,650,000.00880541XX0 08/01/2025 1,1272.06608/25/2016 1,593,553.50 1.893 1.9201,656,793.08 State of Tennessee1676 MUN 700,000.00880541XX0 08/01/2025 1,1272.06608/25/2016 676,053.00 1.893 1.920702,881.91 State of Tennessee2001 MUN 205,000.00880541QU4 08/01/2024 7623.72812/20/2018 207,160.70 2.860 2.900208,239.32 State of Texas1855 MUN 250,000.00882723EN5 08/01/2025 1,1273.83209/22/2017 250,295.00 2.747 2.785257,194.99 State of Texas2195 MUN 1,500,000.008827237P8 10/01/2025 1,1883.05112/23/2019 1,489,440.00 1.975 2.0031,547,988.02 State of Texas2225 MUN 940,000.008827237T0 10/01/2029 2,6493.52101/30/2020 936,240.00 2.191 2.2211,019,289.72 State of Texas2255 MUN 1,265,000.008827237T0 10/01/2029 2,6493.52102/14/2020 1,259,940.00 2.192 2.2221,371,658.44 State of Texas2311 MUN 250,000.008827237N3 10/01/2024 8232.89903/16/2020 248,042.50 1.231 1.248258,999.17 State of Texas2541 MUN 245,000.008827235K1 10/01/2025 1,1882.92206/30/2021 242,312.35 0.641 0.650262,813.12 State of Texas2548 MUN 1,000,000.00882724RF6 10/01/2030 3,0142.42607/02/2021 912,830.00 1.480 1.5011,070,989.16 State of Texas2631 MUN 500,000.00882723A90 10/01/2025 1,1882.83112/07/2021 493,130.00 1.030 1.045528,372.93 University of California2077 MUN 1,500,000.0091412GQG3 05/15/2025 1,0493.05008/26/2019 1,480,410.00 1.930 1.9571,544,300.30 University of California2095 MUN 1,000,000.0091412GQG3 05/15/2025 1,0493.05009/09/2019 986,940.00 1.797 1.8211,033,354.84 University of California2685 MUN 440,000.0091412HGF4 05/15/2027 1,7791.31604/05/2022 394,587.60 3.028 3.070405,438.57 State of Utah1731 MUN 450,000.00917542QR6 07/01/2024 7314.55401/04/2017 456,363.00 2.904 2.944462,910.75 State of Utah2306 MUN 1,500,000.00917542QV7 07/01/2025 1,0963.53903/13/2020 1,509,495.00 1.948 1.9751,566,472.64 State of Washington1672 MUN 250,000.0093974DHW1 08/01/2022 312.74008/08/2016 250,122.50 1.504 1.524250,245.52 State of Washington1721 MUN 515,000.0093974CPH7 08/01/2022 314.63612/05/2016 515,947.60 2.465 2.500515,849.67 State of Washington1802 MUN 485,000.0093974CRC6 08/01/2024 7624.66905/23/2017 496,838.85 2.416 2.450505,437.75 State of Washington2196 MUN 500,000.0093974CRC6 08/01/2024 7624.66912/24/2019 512,205.00 1.978 2.005526,372.21 State of Wisconsin2547 MUN 2,000,000.0097705MNU5 05/01/2031 3,2262.45107/02/2021 1,812,620.00 1.553 1.5752,142,834.93 State of Wisconsin2574 MUN 1,500,000.0097705MNP6 05/01/2026 1,4002.08909/09/2021 1,438,815.00 0.739 0.7501,575,520.33 Portfolio CPA
AP
Run Date: 07/19/2022 - 16:21 FI (PRF_FI) 7.3.11
Report Ver. 7.3.11

9.b
Packet Pg. 160
June 30, 2022
Par Value
Days To
Maturity
Maturity
Date
Current
RateMarket Value
Fund ALL - Portfolio Listings
Investments by Fund Page 20
CUSIP Investment # Issuer
Purchase
Date Book Value
YTM
360
YTM
365
Municipal Bonds
State of Wisconsin2576 MUN 1,000,000.0097705MNP6 05/01/2026 1,4002.08909/13/2021 959,210.00 0.769 0.7801,049,176.98 Yosemite Community College Dis2657 MUN 1,000,000.00987388GX7 08/01/2027 1,8572.08202/17/2022 940,460.00 2.053 2.0821,000,000.00 Subtotal and Average 209,322,603.30 204,650,000.00 196,072,145.60 2.021 2.049 1,590 Supranationals (World Bank) Bonds
Inter-American Dev. Bank1978 IADB 1,500,000.004581X0CZ9 09/14/2022 751.75011/09/2018 1,498,935.00 3.106 3.1501,496,017.84 Inter-American Dev. Bank2528 IADB 2,000,000.004581X0DV7 04/20/2026 1,3890.87504/20/2021 1,836,760.00 0.910 0.9231,996,425.39 Inter-American Dev. Bank2586 IADB 2,000,000.0045818WDH6 06/17/2026 1,4470.80009/27/2021 1,839,380.00 0.914 0.9271,990,161.05 Inter-American Dev. Bank2652 IADB 1,000,000.004581X0EB0 01/13/2027 1,6571.50001/13/2022 930,610.00 1.504 1.525998,893.87 Inter-American Dev. Bank2655 IADB 1,000,000.004581X0EB0 01/13/2027 1,6571.50001/14/2022 930,610.00 1.518 1.540998,258.23 Intl Bk Recon & Development1976 IBRD 1,500,000.00459056LD7 01/19/2023 2027.62511/08/2018 1,539,030.00 3.111 3.1551,534,273.81 Intl Bk Recon & Development1982 IBRD 1,000,000.00459058GL1 09/27/2023 4533.00011/27/2018 999,760.00 3.018 3.060999,307.40 Intl Bk Recon & Development2470 IBRD 1,500,000.00459058JL8 10/28/2025 1,2150.50001/08/2021 1,375,455.00 0.480 0.4871,500,620.64 Intl Bk Recon & Development2492 IBRD 1,500,000.00459058JS3 02/10/2026 1,3200.65002/10/2021 1,349,790.00 0.641 0.6501,500,000.00 Intl Bk Recon & Development2497 IBRD 1,500,000.0045905U5Y6 02/18/2026 1,3280.60002/18/2021 1,371,570.00 0.591 0.6001,500,000.00 Intl Bk Recon & Development2498 IBRD 1,500,000.00459058JL8 10/28/2025 1,2150.50002/18/2021 1,375,455.00 0.591 0.6001,495,088.40 Intl Bk Recon & Development2510 IBRD 1,500,000.00459058JL8 10/28/2025 1,2150.50003/01/2021 1,375,455.00 0.787 0.7981,485,428.29 Intl Bk Recon & Development2534 IBRD 1,500,000.00459058JS3 02/10/2026 1,3200.65005/26/2021 1,349,790.00 0.833 0.8451,489,672.03 Intl Bk Recon & Development2553 IBRD 1,500,000.00459058JS3 02/10/2026 1,3200.65007/15/2021 1,349,790.00 0.839 0.8511,489,339.51 Intl Bk Recon & Development2559 IBRD 1,500,000.00459058JS3 02/10/2026 1,3200.65008/12/2021 1,349,790.00 0.871 0.8831,487,652.68 Intl Bk Recon & Development2650 IBRD 1,000,000.0045906M2L4 02/24/2026 1,3340.65001/07/2022 914,600.00 1.368 1.387973,951.92 Intl Bk Recon & Development2673 IBRD 1,000,000.0045906M2Z3 03/17/2025 9902.05003/17/2022 975,660.00 2.107 2.136997,740.74 International Finance Corp.2441 IFC 1,000,000.0045950VPE0 10/15/2025 1,2020.25010/30/2020 916,570.00 0.497 0.5041,000,000.00 International Finance Corp.2454 IFC 1,500,000.0045950VPH3 11/15/2025 1,2330.25011/30/2020 1,380,300.00 0.683 0.6921,500,000.00 International Finance Corp.2483 IFC 1,500,000.0045950VPJ9 01/15/2026 1,2940.58001/25/2021 1,371,825.00 0.501 0.5081,503,736.59 International Finance Corp.2502 IFC 1,500,000.0045950VPJ9 01/15/2026 1,2940.58002/11/2021 1,371,825.00 0.522 0.5301,502,606.89 International Finance Corp.2503 IFC 1,500,000.0045950VPS9 02/26/2026 1,3360.50002/26/2021 1,368,510.00 0.616 0.6251,493,267.30 International Finance Corp.2514 IFC 2,000,000.0045950VPT7 03/15/2026 1,3530.50003/15/2021 1,846,940.00 0.808 0.8192,000,000.00 International Finance Corp.2515 IFC 1,500,000.0045950VPU4 03/23/2026 1,3610.75003/23/2021 1,382,535.00 0.746 0.7571,499,597.40 International Finance Corp.2517 IFC 2,000,000.0045950VPU4 03/23/2026 1,3610.75003/23/2021 1,843,380.00 0.887 0.9001,989,070.16 International Finance Corp.2532 IFC 1,500,000.0045950VPY6 05/15/2026 1,4140.50005/28/2021 1,407,525.00 1.006 1.0201,500,000.00 International Finance Corp.2654 IFC 1,000,000.0045950KCX6 10/08/2026 1,5600.75001/12/2022 902,550.00 1.518 1.540967,587.55 Portfolio CPA
AP
Run Date: 07/19/2022 - 16:21 FI (PRF_FI) 7.3.11
Report Ver. 7.3.11

9.b
Packet Pg. 161
June 30, 2022
Current
RateMarket Value
Fund ALL - Portfolio Listings
Investments by Fund Page 21
CUSIP Investment # Issuer
Purchase
Date Book Value
YTM
360
YTM
365
Subtotal and Average 38,888,697.69 39,000,000.00 36,154,400.00 1.091 1.106 1,220 Total Investments and Average 590,753,776.97 584,722,536.47 552,545,616.66 1.593 1.615 1,407 Portfolio CPA
AP
Run Date: 07/19/2022 - 16:21 FI (PRF_FI) 7.3.11
Report Ver. 7.3.11

9.b
Packet Pg. 162
1 General Investment Guidelines: Full Compliance
a) The max. stated final maturity of individual securities in the portfolio should be 10 years. b) A max. of 30 percent of the par value of the portfolio shall be invested in securities with maturities 28.03% beyond 5 years.
c) The City shall maintain a minimum of one month's cash needs in short term investments. d) At least $50 million shall be maintained in securities maturing in less than 2 years.

Plus two managed pool accounts which provide instant liquidity:
- Local Agency Investment Fund (LAIF) - maximum investment limit is $75 million $42.9 million - Fidelity Investments $3.7 million
e) Should market value of the portfolio fall below 95 percent of the book value, report this fact within a 93.52% reasonable time to the City Council and evaluate if there are risk of holding securities to maturity. d) Commitments to purchase securities newly introduced on the market shall be made no more than three (3) working days before pricing.
f) Whenever possible, the City will obtain three or more quotations on the purchase or sale of comparable securities (excludes new issues, LAIF, City of Palo Alto bonds, money market accounts, and mutual funds).
2 U.S. Government Securities:

Full Compliance
a) There is no limit on purchase of these securities.
b) Securities will not exceed 10 years maturity.
3 U.S. Government Agency Securities: Full Compliance
a) There is no limit on purchase of these securities except for:

Callable and Multi-step-up securities provided that:
- The potential call dates are known at the time of purchase; - the interest rates at which they "step-up" are known at the time of purchase; and - the entire face value of the security is redeemed at the call date. - No more than 25 percent of the par value of portfolio.

24.30%
b) Securities will not exceed 10 years maturity.
4 California State, California Local Government Agencies, and other United States State Bonds: Full Compliance a) Having at time of investment a minimum Double A (AA/Aa2) rating as provided by a nationally recognized rating service (e.g., Moody’s, Fitch, and/or Standard and Poor’s). b) May not exceed 40 percent of the par value of the portfolio. 35.01% 5 Certificates of Deposit (CD): Full Compliance
a) May not exceed 20 percent of the par value of the portfolio; None Held b) No more than 10 percent of the par value of the portfolio in collateralized CDs in any institution. c) Purchase collateralized deposits only from federally insured large banks that are rated by a nationally recognized rating agency (e.g. Moody's, Fitch, and/or Standard & Poor's). d) For non-rated banks, deposit should be limited to amounts federally insured (FDIC) e) Rollovers are not permitted without specific instruction from authorized City staff. 6 Banker's Acceptance Notes (BA):

Full Compliance
a) No more than 30 percent of the par value of the portfolio. None Held b) Not to exceed 180 days maturity.
c) No more than $5 million with any one institution.
$107.5 million

2.31%
Attachment C
Investment Policy Compliance
As of June 30, 2022
Investment Policy Requirements
Compliance
Check / Actual

9.c
Packet Pg. 163
Attachment C
Investment Policy Compliance
As of June 30, 2022
Investment Policy Requirements
Compliance
Check / Actual
7 Commercial Paper: Full Compliance
a) No more than 15 percent of the par value of the portfolio. None Held b) Having highest letter or numerical rating from a nationally recognized rating service. c) Not to exceed 270 days maturity.
d) No more than $3 million or 10 percent of the outstanding commercial paper of any one institution, whichever is lesser.
8 Short-Term Repurchase Agreement (REPO):

Full Compliance
a) Not to exceed 1 year. None Held
b) Market value of securities that underlay a repurchase agreement shall be valued at 102 percent or greater of the funds borrowed against those securities. 9 Money Market Deposit Accounts Full Compliance
a) Liquid bank accounts which seek to maintain a net asset value of $1.00. 10 Mutual Funds: Full Compliance
a) No more than 20 percent of the par value of the portfolio. None Held b) No more than 10 percent of the par value with any one institution. 11 Negotiable Certificates of Deposit (NCD): Full Compliance a) No more than 20 percent of the par value of the portfolio. 4.98% b) No more than $5 million in any one institution. Federally Insured 12 Medium-Term Corporate Notes: Full Compliance
a) No more than 10 percent of the par value of the portfolio. 4.46% b) Not to exceed 5 years maturity.
c) Securities eligible for investment shall have a minimum rating of AA or Aa2 from a nationally recognized rating service.
d) No more than $5 million of the par value may be invested in securities of any single issuer, other than the U.S. Government, its agencies and instrumentality. e) If securities owned by the City are downgraded by either rating agencies to a level below AA it shall be the City's policy to review the credit situation and make a determination as to whether to sell or retain such securities.
13 Supranational Organizations Securities:

Full Compliance
a) Securities will not exceed 5 years maturity
b) No more than 20 percent of the par value of the portfolio. 6.67% c) No more than 10 percent in any one institution.
d) Securities eligible for investment shall have a minimum rating of AA or Aa2 from a nationally recognized rating service.
14 Prohibited Investments:
a) Reverse Repurchase Agreements
b) Derivatives as defined in Appendix B of the Investment Policy 15 All securities shall be delivered to the City's safekeeping custodian, and held in the name of the City, with the exception of :
- Certificates of Deposit, Mutual Funds, and Local Agency Investment Fund (LAIF) Full Compliance
None Held
Full Compliance

9.c
Packet Pg. 164

City of Palo Alto (ID # 14466)
City Council Staff Report

Meeting Date: 8/8/2022 Report Type: Information Reports

City of Palo Alto Page 1

Title: Fiscal Year 2022 Annual Evaluation Report for the Santa Clara County Multi-Jurisdictional Program for Public Information on Flood Preparedness and Awareness, and the Resulting Community Rating System Flood Insurance Discounts
From: City Manager
Lead Department: Public Works

Recommendation
This is an informational report and no Council action is required.

Background
The CRS is a voluntary program under the Federal Emergency Management Agency’s (FEMA) National Flood Insurance Program that allows comm unities to earn flood insurance premium discounts for their residents and businesses. Communities earn CRS credit points for activities that promote flood risk reduction practices and encourage residents and businesses to purchase flood insurance. CRS Clas s Ratings are assigned at 500 -point increments, and each improvement in Class Rating nets an additional 5% flood insurance premium discount. The CRS Class Ratings range from 1 to 10, with 10 being the lowest rating and 1 being the highest. The City of Palo Alto has participated in the CRS program since 1990 and has been rated as a Class 6 community since 2017, affording residents and businesses a 20% or 10% (outside of Special Flood Hazard Area, or SFHA) discount on their flood insurance premiums. The CRS r ating was due to a significant effort on flood awareness and floodplain management by the City.

Neighboring cities have earned similar CRS ratings (Mountain View – 7, East Palo Alto – 7, Los Altos – 8, Sunnyvale – 7).

The CRS Coordinator’s Manual includes the option to implement a regional Program for Public Information (PPI). Under the PPI, a community or group of communities work together to create and deliver customized and consistent flood risk reduction outreach messages. By disseminating these messages each community earns points that can improve their CRS rating.

The number of CRS credit points earned depends on how extensive the implemented program is within each community’s boundaries. City of Palo Alto has earned up to 122 points for its PPI efforts.

City of Palo Alto residents and businesses pay $3.4 million (per FEMA data as of May 3, 2022) 10 Packet Pg. 165

City of Palo Alto Page 2

for flood insurance premiums per year. The total savings from the 20% insurance discount achieved by the City on behalf of its residents due to its CRS part icipation is approximately $700,000 per year (per FEMA data as of May 3, 2022 ). Without CRS, the residents and businesses would have paid $4.1 million. Palo Alto participates in the Santa Clara County Multi - Jurisdictional program to enhance the effectivene ss of the flood risk messages to residents, reduce flood risks, and to maintain or improve the City’s CRS rating of 6.

As required by the terms of the PPI, the regional PPI committee must convene annually to evaluate whether the flood risk reduction messa ges are still appropriate and adjust them as needed. A report to FEMA must be submitted annually describing the PPI implementation. The annual report is transmitted to the council of each participating agency to provide updates on the various flood prepare dness and awareness outreach programs that the Santa Clara County Multi-Jurisdictional PPI has undertaken for the past year.

Discussion
The annual report for the 2022 Santa Clara County Multi -Jurisdictional PPI is provided as information for Council. The report highlights the elements of the flood safety outreach programs implemented by the e leven Santa Clara County communities (Cupertino, Gilroy, Los Altos, Milpitas, Morgan Hill, Mountain View, Palo Alto, San Jose, Santa Clara, Santa Clara County, and Sunnyvale) that participate with the Santa Clara Valley Water District (Valley Water) in CRS.

Valley Water, along with representatives from each of the participating communities, developed the original 2015 PPI and the associated annual report. The committee meets annually to evaluate and approve the PPI. The attached 2022 report was created bas ed on meetings that occurred on March 10 and May 19, 2022 . The final version of the 202 2 PPI was presented to and approved by Valley Water’s Board of Directors on July 15, 2022. The worksheet on Appendix A of Attachment A lists the outreach projects, impl ementing agencies, and the messages associated with each of the projects; similarly, Appendix B of Attachment A lists the non-credited CRS outreach projects.

Every year, participating communities must present the PPI plan to the legislative bodies to continue receiving CRS credit. The 2021 Santa Clara County Multi -Jurisdictional PPI was presented to Council on June 14, 2021 (Staff Report ID# 12264). Staff will continue to provide information to Council on the San ta Clara County Multi-Jurisdictional PPI on a yearly basis after the end of each Fiscal Year to achieve the maximum number of CRS credit points and associated flood insurance premium discounts for the community.

Stakeholder Engagement
The program was discussed and prepared by representative staff from the eleven participating communities.

Resource Impact
10 Packet Pg. 166

City of Palo Alto Page 3

The review and approval of this inform ational report has no impact on the City’s budget.

Maintaining this rating and participation in this program saves the Palo Alto community 20% on flood insurance costs.

Environmental Review
This is an informational report and not subject to the California Environmental Quality Act (CEQA).
10 Packet Pg. 167

City of Palo Alto (ID # 14620)
City Council Staff Report

Meeting Date: 8/8/2022 Report Type: Information Reports

City of Palo Alto Page 1

Title: City Council Recess Report
From: City Manager
Lead Department: City Manager

DISCUSSION
The following informational report provides a brief update on activities accomplished during the City Council’s July recess. The updates are organized by department. While the summary is not an exhaustive list of staff activities, it seeks to inform the City Council and the broader community about items completed since the last City Council meeting of the fiscal year or recent efforts underway. The report is transmitted with the August 8 City Council meeting packet.

Administrative Services Department
End of Fiscal Year and New Fiscal Year Activities
Administrative Services Department (ASD) staff have been focusing on annual steps needed to transition from one fiscal year to a new fiscal year, it is the “New Year” for financial staff. This year, in partnership with the Information Technology Department, staff was able to increase automation of software processes needed on June 30 to transition to the new fiscal year on July

1. This increased automation helped this work effort finishing during normal business hours for the first time in years!
Staff also completed other year-end activities including the annual inventory of both warehouses at the Municipal Services Center and Regional Water Quality Control Plant (RWQCP). This annual process requires the physical count of inventory and resulted in no material discrepancies. Staff implemented employment contract terms for payroll processing such as the sunset of provisions implemented for adaptation to the pandemic including changes to leave accrual balances on June 30, 2020. Additionally, staff is actively working on publishing the FY 2023 Adopted Operating and Capital Budget books, targeting an August release date.

Staff published the FY 2023 Municipal Fees, available online.

Other Administrative Activities
11 Packet Pg. 168

City of Palo Alto Page 2

Other staff activities included a focus on employee recruitment and retention, with three active recruitments underway and two new employees beginning in critical roles. An additional Storekeeper in the warehouse (approved in the FY 2023 Adopted Budget) will ensure a safe working environment and the Finance Manager will supervise all accounting functions, including payroll and accounts payable activities.

Throughout this summer, staff continued to support the activities of two Council Ad Hoc committees for the exploration of potential ballot measures as part of the November 2022 election as well as the review of documents in relationship to the ROTH building and partnership with the Palo Alto History Museum. The Purchasing division engaged internal stakeholders to review and improve the City’s procurement process as part of the Purchasing Redesign Project. Staff successfully timed the sale of securities to ensure no loss to the City in order to meet cash-flow needs including the pre-payment of the unfunded accrued liability annual actuarial determined payment.

City Manager’s Office
Three Assistant to the City Manager and Communications Coordinator positions were filled in July, all expected to start in August. The Assistant to the City Manager positions (approved by the City Council as part of the FY 2023 Adopted Budget) will focus on key areas such as housing, economic development and other priorities.

Uplift Local Update
Per Council direction, the Uplift Local closed streets program was extended to December 31, 2023, and adopted access and perimeter rules such as implementation of an emergency access lane, edge treatments no taller than 36” placed around retail and dining spaces, elimination of large tents, and re-established the eight-foot sidewalk width. In order to truly refresh the space, staff planned the physical changes to include a much-needed deep cleaning of the streets and sidewalks. By Friday, August 5, businesses are required to remove all large tents. During the week of August 8-11, Public Works staff and a City contractor will perform sweeping and power washing of the streets and sidewalks. Cleaning will be performed overnight so that businesses can continue to operate during daytime business hours. Businesses will remove all items from the street and sidewalk prior to the nightly cleaning. Once the roads are clean, a City crew will install intermittent striping in front of businesses that use the streets for business operations, which will create the “invisible” emergency access lane down the center of California Avenue and Ramona Street. Coordinated barrier wraps and pole banners will be installed in downtown and on California Avenue that will feature work from local artists. Additionally, staff began working with a consultant to further develop the closed streets, compile a scope of work for the closed streets alternative analysis study, and create a stakeholder engagement plan that will assist with both efforts.

Federal Grant Earmarks Approved
11 Packet Pg. 169

City of Palo Alto Page 3

On June 30, Senator Josh Becker shared that the City will receive $2M in funding to replace the 100-year old Newell Road Bridge at San Francisquito Creek. Staff continue to work on the design and are working on a grant application with California Consulting due in mid-September.

In addition, thanks to Assemblymember Marc Berman, the City will receive $5.4M in funding for the Fire Station 4 replacement project.

Community Services Department
Summer Camps
The Community Services Department (CSD) offered a full menu of summer camps including music, dance and theatre, art, science, sports/recreation, and popular Foothills camps. Special interest camps are also offered such as LEGO, technology, writing, and cooking camps. Most camps are offered in person, with a few academic camps in virtual format. Roughly 3,000 youth were served through the City’s camps. Vice Mayor Kou made a special appearance on July 1 at the Young Mayors Kidizens camp, where “kidizens” build small-scale cities with LEGOs and learn how their decisions impact others in their community. The campers built cities that included police stations, schools, grocery stores, fire stations, and more.

Special Events
CSD continued to host events in July, offering a safe and welcoming space for the community to come together, including family movie nights and the July 4th Festival at Mitchell Park featuring live music, a DJ, games and art activities for kids, inflatables, and food trucks. The 2022 Twilight Concert Series, overseen by staff from Palo Alto Children’s Theatre, kicked off on June 25 with a World Music Day Celebration. Presented in collaboration with the Palo Alto Recreation Foundation in Rinconada Park, a diverse roster of acoustic musicians play in the park throughout the day, culminating in an evening concert by the Bay Area Beatles cover band, The Sun Kings. In July, the Twilight Concert Series continued with two concerts featuring popular bands “In the Led” (Led Zepelin tribute band) and “Carnaval” (celebrating the music of Santana) on July 9 and 23. This year’s concert series continues through August at Mitchell Park with Grammy-Award winning musician Mads Tolling on August 6, Heartless on August 13, and The Boys of Summer on August 20. CSD also supports the Magical Music and Motion Summer Concert Series at the Magical Bridge Playground on Friday nights, May through September.

The Palo Alto Children’s Theatre Summer Hot Dog Series production of Goldilocks and the Three Bears completed performances in July, before opening The Stinky Cheese Man on July 20, with performances running through August 7. In addition to a busy roster of summer camps and classes, the Children’s Theatre expanded its Magical Series, spectrum and sensory friendly programming, to include free Music Therapy classes at Mitchell Park Library and Saturday Summer Sing-Alongs held at the Magical Bridge Playground in Mitchell Park. In July, the Children’s Theatre concluded its fourth annual collaboration with the Stanford University Engineering Department’s Compression Forum, with this summer’s research project focused on the creation of a virtual interactive experience that explores human interaction with algorithms. 11 Packet Pg. 170

City of Palo Alto Page 4

Public Art initiated a new round of ten ArtLift Microgrant projects in July that will provide more than twenty uplifting community engagements, workshops, performances, and installations through the end of September. Artist in Residence, Rayos Magos, completed the community engagement portion of his residency, which included 21 workshops as well as conducting interviews and gathering stories through his Five Box Project installed at Palo Alto City Libraries.

Rayos Magos is working on design development for his temporary artwork in King Plaza, which will be installed this fall. Information and how to sign-up is available on the Public Art Program website.

The Art Center opened its new exhibit RESTART in late June and hosted a free Friday Night at the Art Center for the community on July 1. RESTART showcases how art can promote healing, connection, and restoration and is the Art Center’s first juried exhibition in more than a decade.

The exhibition features work from a wide range of media by Northern California artists, including six artists from Palo Alto. RESTART is on view through August 20. The Art Center also hosted the annual Palo Alto Clay and Glass Festival on July 9-10 and resumed its free virtual meditation sessions with stress management consultant Julie Forbes on Thursdays at noon through August 25. Sessions will rotate each week between mindful meditation, body scan, loving kindness, and guided visualization, with some gentle movement activities.

Parks and Open Space
Open Space Rangers provided support to Public Works and Fire Department staff to clear brush and vegetation along Arastradero Road and Page Mill Road to reduce fire risk in the Foothills.

Rangers closely monitored Open Space Preserves on July 4 to monitor visitors and prevent illegal fireworks.

Parks and Tennis Courts Maintenance
Parks staff continued to maintain neighborhood parks, athletic fields, and courts with an emphasis on water conservation. While staff reduced irrigation, specifically targeting aesthetic grass areas, particular care is being taken to ensure that trees continue to be adequately irrigated. On July 20, 2022, a contractor completed the resurfacing of the Cubberley and Peers Park tennis courts, which were in dire need of repair.

Office of Emergency Services
The City’s Office of Emergency Services (OES) continued to support pandemic-related functions, both internal to City operations as well as regional coordination with the County of Santa Clara.

The Emergency Operations Center (EOC) posture remained in “virtual” mode, with OES staff in the office, at the Mobile Emergency Operations Center (MEOC), and other sites.

OES led the annual 4th of July Safety Watch that involved agencies such as CAL FIRE, the Midpeninsula Regional Open Space District, San Mateo County, Santa Clara County, and other state and local agencies.
11 Packet Pg. 171

City of Palo Alto Page 5

OES continued to work with regional partners to improve wildfire safety. This includes the alertwidlfire.org program, with new equipment at the Montebello Reservoir and other locations. Internally, OES worked with the Foothills Fire Management Team to coordinate various City departments (Fire, Public Works, Utilities, Community Services, etc.) to continue mitigation work, such as roadside clearing of brush per the Foothills Fire Management Plan.

OES also conducted numerous public outreach and education events such as the MSC Open House and training and exercises for the Emergency Services Volunteer (ESV) program.

Fire Department

Fire Station 8 Staffing
Palo Alto Fire (PAFD) and Santa Clara County Fire (SCCFD) firefighters began staffing Fire Station 8 in the Palo Alto Nature Preserve. The summer of 2022 is the second fire season that PAFD and SCCFD staffed Fire Station 8 since the Tri-Party Fire Agreement for Foothills Fire Station staffing was signed in June 2021. Fire Station 8 is occupied every day between 8 a.m. and 8 p.m. and is available to respond to emergencies that occur in Palo Alto, Los Altos Hills, and surrounding open spaces. This staffing rotation will continue until the end of fire season, typically in November.

Santa Clara County Joint Fire Academy Graduation
On July 8, the Palo Alto Fire Department graduated ten firefighters from the Santa Clara Joint Fire Academy (SCCJFA). The SCCJFA wrapped up after eighteen weeks of firefighter and Emergency Medical Services training with partnering agencies, Milpitas Fire Department, Santa Clara County Fire Department, and South Bay Regional Consortium. There were two women in the academy, both of whom are Palo Alto Fire Department hires. Both women were Palo Alto Fire Department cadets before they became PAFD recruits.

Battalion Chief Promotion
The Palo Alto Fire Department conducted a promotional process for the Battalion Chief position. Human Resources personnel and nine chief officers from five different counties representing nine fire agencies assisted in the assessment center. As a result, Marc Muzzi was promoted to Battalion Chief on July 16.

Human Resources Department
Human Resources staff continue to focus on employee recruitment and hiring new talent. In June and July, 90 new hires were onboarded. HR partnered with Community Services to hire 57 of these new hires to lead summer camps. Other successfully completed recruitments include placement for three Assistant to City Managers positions who will focus on Housing, Economic Development, and other priorities. Other positions filled include:
11 Packet Pg. 172

City of Palo Alto Page 6

• Utilities Assistant Director, Engineering
• Sustainability Program Administrators (2)
• Assistant Power Engineer
• Associate Power Engineer
• Planner
In addition, there were 13 promotions including a Battalion Chief recruitment resulting in the promotion of Captain Marc Muzzi, who has served Palo Alto for 22 years. Human Resources staff also completed the critical and extensive Police Chief recruitment process.

In June, negotiated salary increases were processed and implemented for the Fire Chief’s Association, the International Association of Firefighters, and Service Employee International Union hourly employee group. Most recently, negotiations with SEIU launched and will continue the bargaining process with a goal to reach agreement of a new contract and bring to Council for approval by the end of 2022.

Finally, a significant amount of staff’s time and resources continue to be required to track, monitor, and complete reporting requirements related to COVID-19, including assisting the administration of employee and community testing, which remains available daily Monday to Thursday each week.

Library Department
Events & Activities
The 2022 Summer Reading Program launched on June 1 with nearly 1500 signups. This year’s theme of “All Together Now” provides participants a unique opportunity to read for a cause.

For every participant who completes the program, the Library will donate $1 to the Palo Alto Community Fund (PACF), an organization which provides grants to non-profits that improve the quality of life for everyone in our community.

With the start of Summer Reading Program, the Library also launched in-person events for all ages. A Little Ones Storytime in the Secret Garden at Children’s Library attracts a weekly crowd of 80+ babies and caregivers. The summer’s “What’s Up Wednesdays” series has provided performances and craft activities for all ages at Children’s, Mitchell Park, and Rinconda Libraries.

The Seed Library has returned to Rinconada Library. It is currently stocked with native wildflower seeds from the #PlantWildFlowers grant courtesy of HHMI Tangled Bank Studios and PBS Nature.

Reboot Services at Mitchell Park Library quietly launched in mid-July. The newly re-vamped Ventura Technology Learning Center on the 2nd floor, provides a variety of hands-on technology workshops, in-person help with eBooks and other digital resources, and the return of the popular Vintage Media Lab, which provides equipment to digitize old formats, such as photos 11 Packet Pg. 173

City of Palo Alto Page 7

and video cassettes. The Library is currently offering Reboot Room tours and Vintage Media Lab appointments.

Coming Soon
The Library will be expanding hours at all locations later this year, including adding a fourth service day at Children’s, College Terrace, and Downtown Libraries; and a sixth day at Mitchell Park and Rinconda Libraries. The Library is still filling vacancies to meet these expansion plans.

Planning and Development Services Department
Boards and Commissions Continued to Meet
Planning and Development Services continued to staff meetings and hearings of commissions and boards during July including the Historic Resources Board, Planning and Transportation Commission, and Architectural Review Board. Topics discussed included permanent parklet standards, courtesy review of the Project Homekey, consideration of accessory dwelling unit policy development, and more.

Safe Parking Neighborhood Check In
The Department held a virtual Safe Parking Neighborhood Check In for a proposed congregation-based safe parking permit at First Congregational Church at 1985 Louis Road.

Over 80 participants attended the event. Staff, the applicant, and the safe parking program operator answered questions from attendees and shared information about the proposed permit. An appeal of the permit has been filed. Appeal of safe parking permits are adjudicated by the City Council, which will be scheduled soon.

Policy Development
Staff continue to develop policies related to notable topics such as hazardous materials, green building, and the 2022 triennial building code update. A potential moratorium on hazardous materials, previously contemplated for Council action in June, was deferred to allow staff additional time to develop a stronger understanding of current and potential new regulations.

Staff are preparing outreach to local stakeholders in advance of City Council discussions on this topic.

The triennial building code update also presents an opportunity to explore local energy reach codes. Staff have been preparing for two outreach meetings to occur in August. Every three years, the State adopts new building standards referred to as the California Building Standards Code. While the State sets the minimum building standards, local jurisdictions can enact more stringent local building standards based on unique local climatic, geologic, and topographic conditions. The City’s proposed 2022 green building regulations aim to increase water conservation and reduce water loss, lower embodied carbon in new construction projects, reduce fossil fuel use in buildings, and facilitate electric vehicle adoption by community members and visitors to Palo Alto. The two upcoming meetings will be held on August 16 and August 18 (both scheduled from 6 p.m. to 8 p.m.) to provide background information 11 Packet Pg. 174

City of Palo Alto Page 8

and create an opportunity for community input on these new proposals. Community input gained will help inform the City Council as they consider staff recommendations later this fall. A new webpage is available for the public to learn more about the proposed green building and local energy code updates here.

Project Homekey
Staff continue collaboration with LifeMoves to develop an 88-bed shelter facility on San Antonio Road. Efforts include meetings to review plans for the proposed site to provide feedback and problem solve. In addition, the Architectural Review Board met on July 21, 2022 and provided non-binding comments on the proposed design.

Hiring
The Department continues to work with Human Resources to recruit and fill vacant positions— including newly approved positions in the FY 2023 budget. An offer was made to a building inspector, two new planners were hired, and two planners in Current Planning were promoted.

The summer also included the conclusion of Rachael Tanner’s tenure with the City of Palo Alto; she served as assistant director of PDS from 2019 through the end of July.

Police Department

Recruiting and Hiring
The Department is focused on the recruitment and hiring of qualified candidates to fill current vacancies this fiscal year: (14) police officers (9 vacant/5 hire-ahead for pending vacancies), (5) Dispatchers (4 vacant/1 hire-ahead for pending vacancies), (2) Records Specialists, (1) Business Analyst, (1) Admin Associate. The Department has been working collaboratively with HR to advance the recruitment and hiring processes in this competitive hiring environment. Currently, there are (5) officers in the Field Training Program and (4) in the police academy.

New Police Chief Selection
The City Manager has announced the selection of Acting Chief Andrew Binder as the City’s Chief of Police, following the retirement of former-Chief Robert Jonsen in July. This appointment will be considered by the City Council on August 8 and if confirmed, Chief Binder would become the 11th police chief in the 128-year history of Palo Alto. Personnel in the Department are excited to welcome Chief Binder and are enthusiastic to continue their service to the residents, businesses, and visitors to Palo Alto under his leadership.

New Efforts in Public Communications
Staff worked over the summer to develop ways to re-engage with the community online, after the reduction in staffing due to the global pandemic and economic shifts limited the Department’s budget. The Department shuffled resources and worked with employees to solicit 11 Packet Pg. 175

City of Palo Alto Page 9

online content from all workgroups, and recently began new efforts to share more information (especially pictures and videos) via social media highlighting police personnel, the work they do on a daily basis, and the bonds they have with our community. The Department will continue engaging with the community online by using social media to have two-way conversations with community members whenever possible, answer questions, provide information, and address concerns in a public way. These efforts are currently underway and are intended to be another way that staff are “getting back to normal.”

Below is media inquiry response data for Palo Alto Police Department in June 2022.

Media Inquiries Handled: 18
Staff continued to track these inquiries to ensure response to media requests. Watch Commanders continue to be responsive and accessible, and prioritizing media inquiries appropriately and the web form continues to increase effectiveness and efficiencies of staff supporting these inquiries. Staff responded to requests on the same workday 100% of the time in June (18 of 18 inquiries). In mid-June at the annual shift change, the two Watch Commanders who will be handling media inquiries for the foreseeable future are David Lee and Con Maloney.

Number of news releases proactively distributed in June 2022: 5

Total media inquiries handled by PAPD in June 2022: 18

Shortest response time: 5 minutes

Longest response time to one of those 18 inquiries: 6 hours and 2 minutes

Other Stats:

Response time on each of the 18 inquiries
• More than 24 hours: 0 (0%)
• Within 24 hours: 18 (100%)
• Same work-day response: 18 (100%)
• Between 90 minutes and 24 hours: 5 (28%)
• Within 90 minutes: 13 (72%)
• Within 30 minutes: 6 (33%)
Method of response to all 18 inquiries
• Via e-mail with reporter: 13 (72%)
• Via phone conversation with reporter: 5 (28%)
11 Packet Pg. 176

City of Palo Alto Page 10

• Daily Post: 5

Making Community Connections
Due to the pandemic, the Department had largely been unable to continue the longstanding tradition of formal community interaction opportunities during the past two years. Over the summer, staff spent time planning how to bring back many of those opportunities moving forward. National Night Out on August 2 is the first example of this, and staff planned a free block party open to the public to bring the police and community together over food, games, and conversations. Police are also planning on visiting several resident-hosted block parties throughout town that night. Other planned community events, set to debut again this fall and winter, include the Department’s popular Basic Citizens Police Academy, “Breaking with the Law” gatherings (our unique spin on “Coffee with a Cop” events that other agencies often host), and other opportunities for outreach with our schools, community groups, resident associations, nonprofits, and businesses.

Public Works Department
Progress on Public Safety Building and Charleston/Arastradero Corridor Project Significant progress was made on the Public Safety Building (PSB) and Charleston/Arastradero Corridor projects this summer. The PSB reached a key milestone and “topped out” on June 24, pouring the roof of the third story. Since then, work started on the construction masonry unit (CMU) walls in the basement levels and ongoing mechanical, electrical, and plumbing work continues. Two thirds of the Phase 3 section of the Charleston/Arastradero Corridor project were paved and striped, concrete medians and irrigation lines were installed, and work on the El Camino Real/Arastradero intersection began.

Other Capital Projects
Several construction projects made significant progress and are nearing completion including Mitchell Park Library roof and gutter redesign/construction, Municipal Service Center reroofing, and street resurfacing construction projects. The Citywide building assessment started and the draft facility and electrification assessment report was completed and is now being reviewed by staff. Additionally, prior to Council’s summer break, the design contract for Fire Station #4 was approved and staff held the design kick-off meeting in July.

Several important Regional Water Quality Control Plant (RWQCP) projects are going through the procurement process and have either already started or are beginning shortly. The projects include the RWQCP’s 12kV Electrical Loop Rehabilitation, Primary Sedimentation Tank Rehabilitation, and Secondary Treatment Upgrades projects.

Foothills Roadside Vegetation Clearance/Fire Prevention 11 Packet Pg. 177

City of Palo Alto Page 11

Roadside vegetation clearance and dead tree removals began on Arastradero Road, Los Trancos Road, and Page Mill Road. Work was completed on Arastradero Road and Los Trancos Road.

Work on Page Mill Road is in progress. This year, the work is being performed with in-house crews from Public Works and Community Services Department Open Space staff provide fire watch and firefighting equipment during the work in coordination with the Fire Department.

Fire mitigation work involves clearing dry grass 15 feet from the edge of the road or to a fence line and removing dead trees. Work on Page Mill Road includes 3.3 miles of road from Foothills Park up to Monte Bello parking reserves. Due to the rugged terrain and slope, much of the work has to be done manually by a crew of 8-10 employees. Hot weather and poison oak add to the challenge. In parallel with this work, the Foothills Fire Management Plan team is working on preparing a scope of work and bid documents to contract this work out.

TESLA Supercharging Stations Installation at Bryant Street Parking Garage TESLA is nearly complete with the installation of 19 supercharging stations on the 3rd floor of the Bryant Street parking garage. Many City departments including the City Manager’s Office, Attorney’s Office, Office of Transportation, Utilities, and Public Works had a hand in bringing this project to fruition. The contractor is currently waiting for final wire material delivery, and the supercharging stations should be available for public use by August 1, 2022.

Airport Updates
A contract was executed for a self-pay parking app for vehicle and transient aircraft parking at the airport, which will make all payments for transient aircraft and vehicles at the airport paperless. By reducing the need for face-to-face contact, the app reduces the spread of COVID- 19 pathogens as well as maximizes staff time. The Palo Alto Airport will be the first general aviation airport in the country to implement an app-based payment system for transient aircraft in the Country.

Airport staff implemented an aviation account management system for all tenants to view their account balances, communicate with Airport staff, and submit maintenance requests. Testing and staff training begins the first week of August.

Office of Transportation (OOT)
Safe Routes to School (SRTS)
Following last year’s successful elementary school event, the Office of Transportation Safe Routes team coordinated an Adaptive Cycling event for Palo Alto Unified School District (PAUSD) Exceptional Needs secondary school students at Palo Alto High School on June 28. In total, 13 middle school, 6 high school and 3 post-secondary students attended this year’s event.

Bay Area Outreach and Recreation Program (BORP) staff fitted each student with adaptive road bikes customized for youth with various physical abilities at the Paly basketball courts. Adaptive cycling is one way the Safe Routes staff incorporates equity for all students into its programs.

SRTS staff wrapped up a successful Mobile Information Kiosk E-bike program, providing active transportation outreach to the community at City parks, community events, and public schools. 11 Packet Pg. 178

City of Palo Alto Page 12

This activity was supported via Measure B Bicycle and Pedestrian funds, and staff are preparing the final report for VTA.

SRTS staff also prepared materials, updated Walk and Roll Maps, and streamlined processes in advance of the busy fall season, including creating Zero Waste Bike Rodeos, scheduling Back to School events at all secondary schools, and contracting with partners on fall educational programming.

South Palo Alto Bikeways Grant Applications
Staff applied for two grants for the South Palo Alto Bikeways project. Construction phase funding was requested from the Active Transportation Program and from the One Bay Area Grant Program. Grant notification will occur by February 2023.

Churchill Avenue Enhanced Bikeways Project
Design consultants are currently working to develop 95% improvement plans for the Churchill Avenue Enhanced Bikeways Project. Next steps include finalizing design plans and submitting the project to Caltrans for obtaining encroachment permit application for work in State of California Right-of-way at El Camino and Churchill Intersection.

Churchill Avenue/Alma Street Railroad Crossing Safety Improvements Work continues towards developing final improvement plans and bidding documents for the Churchill Avenue/Alma Street Railroad Crossing Safety Improvements project. Staff received and incorporated California Public Utilities Commission (CPUC) comments and changes were submitted for Final Approval from CPUC. Staff is working with Caltrain’s Joint Powers Board (JPB) to execute a Service Agreement & Construction and Maintenance Agreement to perform work in JPB Right-of-Way.

Alma Street/Meadow Road Intersection Repair and Improvements Staff finalized, began, and completed construction of repairs and pedestrian refuge improvements for the north-east corner of the signalized intersection.

San Antonio & Charleston Intersection Improvements
Staff is working towards completion of the 95% design plans for the intersection improvements that includes traffic signal modification at the San Antonio and Charleston. Potholing was recently conducted at the intersection to determine traffic signal pole locations and to determine any potential conflicts for the installation of signal pole foundations.

Quiet Zone Study at Palo Alto Avenue
Staff is initiating a study in collaboration with the City of Menlo Park to review the Palo Alto Avenue railroad crossing for quiet zone implementation. Kimley Horn & Associates was selected 11 Packet Pg. 179

City of Palo Alto Page 13

as consultant to provide support to both cities in performing this study in accordance with Federal Rail Administration guidelines and requirements.

Rail Grade Separation Project (Churchill Avenue, Meadow Drive, and Charleston Road) Staff are reaching out to PAUSD, PABAC, Stanford and local designers for refinements to the partial underpass alternative and other alternatives.

Parking Updates
Staff have been working on improving the permit order process as parking programs transition to offering virtual permit purchasing and issuing options. College Terrace Residential Preferential Parking permit renewal sales will begin online August 1, 2022, with current permits expiring at the end of August. Crescent Park No Overnight Parking permit renewal sales begin September 1, 2022, with current permits expiring at the end of September. California Avenue Parking District permit sales begin in September with vendor Duncan Solutions for permits valid during the final quarter of 2022.

Parking and City Managers Office staff continue to improve the parking web pages to increase customer service and ensure they are streamlined, user-friendly, and service oriented.

Grant Administration
Staff submitted the necessary paperwork to receive grant funds for several grants such as Measure B: Bike/Ped Grant where the City will receive $60,000; Section 130 Grant to support the Churchill Avenue/Alma Street Railroad Crossing Safety Improvements project where City will receive $74,164; Measure B: Local Streets & Roads Grant to support local streets and roads programs where the City will receive $64,667.

Ongoing Work
Transportation Planning staff have been conducting development reviews, fulfilling bicycle parking requests, and providing continued support for cross-departmental initiatives, including the PAUSD relocation of Palo Verde Elementary to Greendell School, review of the County’s Stanford Community Plan Update, S/CAP Implementation Planning, Permanent Parklet Program guidelines, and Uplift Local coordination. Staff is also working in close coordination Public Works related to on-going projects such as the Charleston/Arastradero Corridor Phase 3, which has completed new paving, islands, and roadway delineation on Charleston Road between Middlefield Road and San Antonio Road.

Utilities Department

Drought Update
California’s drought continues and State and local water use restrictions are in place in addition to Palo Alto’s permanent water waste regulations. New restrictions prohibit irrigating ornamental landscapes with potable water (drinking water) more than two days per week and between 10 a.m. to 6 p.m. Some exceptions apply for trees and perennial (non-turf) plants such as edible gardens or landscapes that are functional as well as aesthetic. At non-residential sites, 11 Packet Pg. 180

City of Palo Alto Page 14

functional turf (e.g., playing fields and golf courses) is exempt from these limits and non- functional turf cannot be irrigated at all, except to protect trees and perennial plants, or to address an immediate health and safety need. Additional water use restrictions include use of a hose without a nozzle or shut-off device and washing hardscapes except for health and safety reasons. In Palo Alto, restaurants are required to provide water only upon request and hotels and motels must provide guests with the option to opt-out of daily laundry services. Staff are collaborating with regional partners, such as Valley Water, BAWSCA, and Canopy, on outreach campaigns to share resources that help consumers conserve water while protecting the health of valuable landscapes and our urban canopy. Details, including designated watering days, are provided at cityofpaloalto.org/water.

Fiber-to-the-Premises (FTTP) Update
On June 23, 2022, the City launched the internet services market research survey and Palo Alto Fiber deposit program. This survey is designed to learn more about internet preferences and service needs for the community. The responses will provide guidance to the City Council for decision making on services such as pricing and speed and to help determine next steps for the Palo Alto Fiber project. The new deposit program is one measure of many to gauge community support for the Palo Alto Fiber internet services effort. By submitting a $50 deposit for the Palo Alto Fiber effort, residents and businesses have the ability to demonstrate strong support to obtain locally controlled fiber internet services. As of July 28, the City received 3,281 completed survey responses and 694 deposits. The survey will be available tentatively through August to gather as many responses as possible. The City Council and Utilities Advisory Commission will host a joint study session on September 19, 2022 to review the survey results and FTTP financial models.

Sustainability and Climate Action Plan Progress
Staff continues to move forward efforts focused on the Sustainability and Climate Acton Plan (S/CAP) Update, including assessing and developing potential program options to spur heat pump water heater adoption. Program evaluation will consider issues related to grid impacts and permitting. Staff anticipate bringing program recommendations to Council in late September for consideration. Staff are also making progress on other key priorities including the Sea Level Rise Vulnerability Assessment, implementing the updated tree ordinance, and supporting outreach during the drought.

Business Electrification Technical Assistance Program
The City will soon launch a new Business Electrification Technical Assistance Program. This program will offer free consultation and on-site assessment to all businesses to identify beneficial building electrification opportunities. Through work with the contractor, CLEAResult, the City will support the business’ electrification journey with contractor and equipment selection, and assistance with building permits and utility rebate applications. Staff anticipate a program rollout in August.

Page Mill Pastures
11 Packet Pg. 181

City of Palo Alto Page 15

Earlier this year, City staff began investigating the equestrian facility Page Mill Pastures for possible use of water, unmetered and unpaid for, from a City fire hydrant. The City requires that water use from hydrants be metered and paid for just like any other utility service. The City does not have record of Palo Alto Pastures renting a hydrant meter from the City or paying for water usage from a hydrant. Staff have been attempting to work with the property manager to address and resolve the situation. Palo Alto Pastures rents the land from Stanford, so staff have engaged Stanford real estate to assist in the efforts to resolve the situation. Investigation is ongoing and staff will keep the City Council apprised of the outcome.

Update on Engineering and Operations Projects
Electric Engineering is continuing to underground utilities in the Foothills to reduce fire risk. The Grid Modernization and Electrification study is in progress and is on track for completion in fall 2022. Advanced planning is occurring for expected rotation outage blocks in late summer due to systemwide shortages caused by the lack of reliable energy sources when renewables become unavailable. The Corte Madera Water Reservoir was replaced in April 2022. Staff will complete Phase 3 of the Cross Bore Inspection Project by March 2023, which is a critical safety program administered to ensure that there is no potential cross connection of natural gas pipelines or other utility within sewer laterals.

Outage Management System (OMS)
The City’s current electric outage management system, National Information Solutions Cooperative, Inc (NISC), was purchased in 2011. The system, which has not been upgraded, no longer meets staff and customer needs for quick and efficient outage updates. The City received two responses to an RFP and upon evaluation, a contract with Milsoft Solutions, Inc. is being recommended to Council at the September 12, 2022 meeting. Once implemented, the new OMS will substantially improve Utilities’ ability to notify customers and mobilize resources in response to electric outages and emergencies.

STAKEHOLDER ENGAGEMENT
Citywide Communications
During recess, the City Manager’s Office Communications Office drafted and/or coordinated important updates to keep the community aware of—and encourage engagement in—City initiatives, such as:

Blog Posts on Medium
• June 23, 2022 – Water Conservation Tips and New Drought Updates • July 1, 2022 – New City Budget Focuses on Fiscal Sustainability, Community Recovery & Near-Term Restoration of Services
11 Packet Pg. 182
City of Palo Alto Page 16
• July 6, 2022 – Palo Alto Race & Equity Priorities: Progress Update • July 14, 2022 – Palo Alto Fiber Blog Series: What’s New & What’s Next! News Articles Posted to the City Website
• June 13, 2022 – Human Relations Commission Recruitment Now Open! • June 27, 2022 – Water Conservation & Drought Updates
• June 29, 2022 – Internet/Broadband Services Market Research Survey and Deposit Program
• July 1, 2022 – Fiscal Year 2023 City Budget Summary Blog • July 6, 2022 – Flags Flown at Half-Staff in Honor of Highland Park Tragedy Victims News Releases
• June 28, 2022 – County Fire Agencies Warn Community of the Extreme Danger of Fireworks
• July 26, 2022 – City Manager Selects Andrew Binder as Palo Alto Chief of Police

ENVIRONMENTAL REVIEW
This report is not subject to environmental review.
11 Packet Pg. 183
7/28/2022
Schedule of Meetings
Published July 28, 2022
This is a courtesy notice only. Meeting dates, times, and locations are subject to change. Almost all Palo Alto Council and s ome Standing Committee mee tings are cablecast live on C hannel 26. If there ha ppens to be concurrent meetings, one meeting will be broadcast on Channel 29.

Meetings are held in-person and by virtual teleconference.

MONDAY, August 1
Sp. City Council Meeting, 5:00 p.m.

TUESDAY, August 2
Sp. Finance Committee Meeting, Cancelled
WEDNESDAY, August 3
Sp. Utilities Advisory Committee Meeting, 6:00 p.m.

THURSDAY, August 4
Architectural Review Board Meeting, 8:30 a.m.

MONDAY, August 8
Sp. City Council Meeting, 5:00 p.m.

TUESDAY, August 9
Rail Committee Meeting, 6:00 PM
Policy & Services Committee Meeting, Cancelled
WEDNESDAY, August 10
Sp. City Council Closed Session Meeting, 1:00 p.m.

Planning & Transportation Commission Meeting, 6:00 p.m.

THURSDAY, August 11
Historic Resources Board Meeting, 8:30 a.m.

Stormwater Management Oversight Committee, 1:00 p.m.

MONDAY, August 15
Sp. City Council Meeting, 5:00 p.m.

TUESDAY, August 16
Finance Committee Meeting, 5:30 p.m.

THURSDAY, August 18
City/School Liaison Committee Meeting, 8:30 a.m.

Architectural Review Board Meeting, 8:30 a.m.

Public Art Commission Meeting, 7:00 p.m.

MONDAY, August 22
Sp. City Council Meeting, 5:00 p.m.

Persons with disabilities who requ ire auxiliary aids or services in using City facilities or programs, or who would like information on the C ity’s compliance with the Americans with Disabilities Act (ADA) of 1990, may contact: ADA Coordinator, City of Palo Alto, 650-329-2550 (v oice) or 329-1199 (TDD), [email protected]. L istening assistive dev ices are avai lable in the Council Chambers. S ign lang uage interpreters will be provided upon request with 72 hours advance notice. Please advise the City Clerk's Office (650-329-2571) of meetings or changes by 3:00 p.m. on Wednesdays for inclusion in the following week’s schedule. a
Packet Pg. 184
- Canceled
City of Palo Alto (ID # 14654)
City Council Staff Report
Meeting Date: 8/8/2022 Report Type: Special Orders of the Day City of Palo Alto Page 1
Title: Sibling City Update from Mayor John Hamilton, Bloomington, Indiana From: City Manager
Lead Department: City Clerk
There is no report for this item. A verbal presentation will be made at the meeting.

Packet Pg. 185
AA1
City of Palo Alto (ID # 14639)
City Council Staff Report
Meeting Date: 8/8/2022 Report Type: Action Items
City of Palo Alto Page 1
Title: Adoption of Resolutions: (1) Placing a Business Tax on the November 2022 Ballot; (2) Placing a Measure Affirming the Natural Gas Utility Transfer on the November 2022 Ballot; and (3) Establishing Advisory Spending Guidelines for Business Tax Proceed s
From: City Manager
Lead Department: Administrative Services

RECOMMENDATION
Staff recommends that the City Council:

1. Adopt one of the two attached Resolutions to submit a measure to the voters at the general municipal election on November 8, 2022, to adopt a business tax – either Attachment A reflecting Council’s August 1st direction, or Attachment B, reflecting an alternative measure proposed by the Ad Hoc Committee;

2. Adopt the attached revised Resolution establishing advisory spending guidelines regarding use of business tax proceeds if passed by voters (Attachment C); and

3. Adopt the attached Resolution to submit a measure to the voters at the general municipal election on November 8, 2022, to affirm the natural gas utility transfer (Attachment D).

BACKGROUND
The Palo Alto City Council places a high value on fiscal sustainability and has worked diligently with City staff to put the City on strong fiscal footing into the future. The Fiscal Sustainability Workplan of 2019 (CMR 10267) outlines a number of City initiatives, including proactive funding contributions for the city’s long-term liabilities for both pension and Other Post-Employment Benefits (OPEB) which have already been implemented and strategies to structurally balance the General Fund’s revenue and expenditures on an ongoing basis.

The two revenue measures before Council are important elements in continuing progress towards long term sustainable budgets that meet the public’s evolving needs. A summary of the City’s work on revenue generating ballot measures can be found in CMR 13983, Attachment G.

The City Council met on June 20 and directed staff to return on August 1st with final documents to place the business tax measure on the November 2022 ballot.

Packet Pg. 186
AA2
City of Palo Alto Page 2
The Council established an ad hoc committee to be appointed by the Mayor to continue discussions with the business community on the tax structure. The ad hoc committee, consisting of Mayor Burt and Councilmembers Filseth and Dubois, met with representatives of the business community multiple times prior to and subsequent to the June 20 Council meeting as well as the August 1 City Council meeting.

Staff returned to the City Council on August 1, 2022 (CMR 14540) with draft language for 1) a business tax structured as a) Council directed on June 20, 2022 and b) a recommended alternative by the ad hoc committee, 2) a measure to affirm the natural gas general fund transfer for the November 2022 election, and 3) a resolution to establishing advisory spending guidelines for the use of business tax proceeds. The ad hoc committee August 1st alternative tax structure raised the square footage exemption from 5,000 square feet to 10,000 square feet and adjusted the monthly tax rate from $0.06 and $0.12 cents per square foot (depending on size) to a monthly rate of $0.10 per square foot for all non-exempt businesses above 10,000 square feet recognizing feedback from discussions with the business community.

The City Council directed staff to bring forth final documents to place a business tax on the November 2022 election and a resolution to establish advisory spending guidelines for use of business tax proceeds on the August 8, 2022 Consent Calendar pending any additional revisions through final discussions with the business community:

1. Revise business tax structure based on the alternative tax structure proposal of the ad hoc (CMR 14540, Attachment B) committee that adjusts the monthly rate to $0.11 per square foot (Attachment A);

2. Revise the resolutions to establish advisory spending guidelines to assume that the measure to affirm the natural gas general fund transfer not be placed on the November 2022 ballot (Attachment C).

In addition, the City Council directed staff to return to Council with a measure to affirm the natural gas general fund transfer.

DISCUSSION
Measure Adopting a Business Tax. Unlike most communities in California, Palo Alto does not require local businesses to contribute to city services and programs through a business tax.

Prior to the COVID-19 pandemic, the Council discussed adding a business tax to enhance the City’s long-term fiscal sustainability and to help meet significant emerging public needs, particularly with respect to rail grade separations and affordable housing.

The Council considered various business tax models. On March 23, 2020, in response to the COVID-19 public health emergency and sharp economic contraction, the City Council directed Packet Pg. 187
AA2
City of Palo Alto Page 3
staff to suspend work on the development of a local business tax measure for November 2020.

In August 2021 (CMR 12381), Council directed City staff to resume this work and designated the Finance Committee as the working body to review and make recommendations on a potential business tax for the November 2022 election. Taken together, over four years the Committee and City Council have met a total of 24 times to discuss the most appropriate manner of structuring a potential business tax, including refinement of the tax structure for fairness and equity, advisory spending guidelines for revenues, constituent surveys, and community and stakeholder engagement.

Final Tax Proposals
There are two proposed tax structures before the City Council as well as information regarding the discussions and proposal from the business community as submitted to the City Council ad hoc committee.

City Council August 1st Direction: The Council directed staff to revise the ad hoc committee’s business tax structure to adjust the monthly rate to $0.11 per square foot rate and return with final documents on August 8th. As a result of this change, the estimated revenue that would be generated by the tax would be approximately $17 million. That measure is before Council in Attachment A.

Ad hoc Committee Alternative: After discussion on Wednesday and Thursday (August 3rd and 4th), the Ad Hoc Committee recommends the revised tax in Attachment B for voter consideration.

A follow-up discussion with business representatives was held on Wednesday, August 3rd with minor administrative revisions proposed. On Thursday afternoon, August 4th, staff received from business representatives their final proposal to not actively oppose a tax structure; no meeting was held for further discussion. The business representatives’ proposal included the following terms:
• Monthly tax rate of $0.06/sq ft
• Exemption for the first 10,000 square feet
• $500,000 annual cap per business (fixed, no future adjustment for inflation) • Before and after spending reports on affordable housing, public safety, and transportation (the three areas identified as intended uses of tax proceeds).

Staff estimated that this proposal would generate approximately $5 million in annual revenue.

The ad hoc committee discussed this proposal and recommends that the City Council adopt the following tax structure:
• Monthly tax rate of $0.11/sq ft
o NEW: A provision for a $1 million cap on annual tax liability per business (adjusted annually by CPI)
• Square footage exemption for the first 10,000 square feet (in alignment with August 1 Council direction and proposal from the business coalition) Packet Pg. 188
AA2
City of Palo Alto Page 4
• Additional administrative clean-up provisions in response to feedback from the business community, additional detail below.

This ad hoc committee recommended alternative would generate estimated tax revenues of $16.5 million annually. Should the Council wish to place the modified tax structure that includes the $1 million business tax cap on the ballot for voter consideration, the Council would need to adopt the documents in Attachment B. The ordinance in Attachment B includes the input from business representatives received by the City on August 3rd described below.

Additional administrative adjustments. On Wednesday, August 3rd, business representatives suggested a number of changes to the ordinance. Staff agrees that some of the recommendations are reasonable and appropriate and have incorporated these changes into the ad hoc committee proposal at Attachment B. The changes are:
• In section 2.37.100, clarify that the Tax Administrator’s request for additional information be limited to information reasonably required to administer the tax. • Increase the time for lodging objections, filing appeals, requesting and setting hearings, and seeking a refund. Changes were made to section 2.37.150(b) and (c); section 1.27.160(a) and (b); 2.37.170(a) and (c); and section 2.37.190(c). • Decrease the time for the Tax Administrator to initiate audits. Changes were made to section 2.37.200(c), (d) and (e).

Further, business representatives asked that the City report the amount of tax generated each year and where it was spent. The City’s regular fiscal reporting and budgeting procedures include detailed annual information on anticipated and actual revenues by source, and the City’s budget, audited financials, and fiscal year close-out report include detailed information on anticipated and actual expenditures. Staff will ensure that information on business tax proceeds is clearly reflected in these documents as has been maintained as part of the reporting for recent increases in the transient occupancy tax rate.

Business representatives also inquired about audit procedures. In regulations that will be forthcoming, the Tax Administrator will describe steps and timelines for standard audits, so that businesses will be informed about the process. The City will maintain flexibility to adjust to circumstances outside of its control, such as an auditee who requires extended time to assemble and transmit needed records.

Measure Affirming the Natural Gas Utility Transfer. Palo Alto is fortunate to own and operate its own utilities. In 1950, Palo Alto voters approved a Charter provision authorizing the use of some utility rate revenues for City services. This was a common practice. California cities that started publicly-owned utilities in the post-war era typically set rates at reasonable levels and used some of the proceeds to fund city services. Over the ensuing decades, Palo Alto’s natural gas and electric utilities have transferred funds each year into the City’s general fund, providing a stable revenue source that supports a range of City services and community priorities, Packet Pg. 189
AA2
City of Palo Alto Page 5
including police protection, fire and emergency medical services, 911 response, parks, and roads.

In 2010, Californians adopted Proposition 26, which added new rules on how cities may set rates and charges for services, and how they may use the funds collected. The new law did not directly address utility rate transfers, and most California cities with public utilities continued their historic transfer practice. Since 2010, however, a series of court decisions raised questions about the transfers, and in 2015, a class action lawsuit, Green v. City of Palo Alto, was filed that claimed Palo Alto’s natural gas and electric transfers are unlawful under Proposition 26. In 2021, the Santa Clara Superior court held that the electric transfer is lawful and may continue.

The court also held, however, that a portion of the natural gas transfer is a tax that requires voter approval to continue. Both sides have appealed.

City leaders believe it is prudent to seek voter affirmation of the City’s long-standing practice of transferring some natural gas revenues into the general fund to maintain City services that are valued by the community. Voter affirmation of the City’s existing transfer practice will continue Palo Alto’s longstanding natural gas rate-setting practice and will not be the cause of a rate increase. The City’s current natural gas utility rates for residential customers remain below comparators such as PG&E. Additional information on gas rate comparisons can be found in the FY 2023 Gas Utility Financial Plan.

Consistent with responsible fiscal stewardship, the City has been reserving funds so that money is available to issue refunds to natural gas ratepayers at the appropriate time. Last year, the City cut services, in part due to the COVID-related economic contraction and in part due to setting aside the transfer funds instead of spending the funds on services as has been the practice for decades. Service cuts included firefighters, police officers, and librarians. Next year, the City will use one-time funds ($4 million) to partially restore services but if the existing transfer practice is not reaffirmed by the voters or other revenues, not currently assumed in the City’s Long Range Financial Forecast, are not identified to support restored services, ongoing service reductions will likely be required.

TIMELINE
The Santa Clara County Registrar of Voters (ROV) requires measure resolutions be submitted no later than August 12, 2022.

RESOURCE IMPACT
Ballot Measure Placement Resource Impact
The ROV estimates that placing two measures on the November 2022 election ballot will cost approximately $172,000, or $86,000 each. Total costs for the November 2022 election, including Councilmember elections, is estimated at $333,000. Appropriation for these funds is included in the FY 2023 Adopted Budget at the prior estimate of $320,000.

Ballot Measure Revenue Generation Resource Impact
Packet Pg. 190
AA2
City of Palo Alto Page 6
The local revenue generated by a potential ballot measure will be directly impacted by the structure and rates approved by the City Council as noted earlier in this report and each of the ballot questions that would be placed before the voters.

STAKEHOLDER ENGAGEMENT
Feedback was solicited from the community and stakeholders in the form of an online and mail- in communitywide survey (433 respondents), six focus group sessions, a community listening session, city newsletter and blog posts, utility bill inserts, and three voter surveys. A landing page on the City’s website titled, Fiscal Sustainability: A Community Conversation, was also developed. Over the last week, City officials continued to actively engage with members of the business community who have articulated concerns, as described above.

ENVIRONMENTAL REVIEW
This activity is not a project under the California Environmental Quality Act (CEQA) as defined in CEQA Guidelines, Section 15378, because it has no potential for resulting in either a direct or reasonably foreseeable indirect physical change in the environment. ..

Attachments:
• Attachmenta: Attachment A: Resolution Placing a Business Tax on November 2022 Ballot Aug 1 Council Direction
• Attachmentb: Attachment B: Resolution Placing a Business Tax on November 2022 Ballot Ad Hoc Proposed Alternative
• Attachmentc: Attachment C: Resolution Regarding Business Tax Advisory Spending Guidelines Aug 1 Council Direction
• Attachmentd: Attachment D: Resolution Placing Natural Gas Utility Transfer on November 2022 Ballot Aug 1 Council Direction
Packet Pg. 191
AA2

NOT YET APPROVED
1 Resolution No. ______
Resolution of the Council of the City of Palo Alto Calling an Election for November 8, 2022 for Submittal to the Qualified Electors of the City a Measure Amending Title 2 of the Municipal Code to Add Chapter 2.37 to Establish a Tax on Businesses Operating in the City of Palo Alto

R E C I T
A L S
A. Unlik
e most communities in California, the City of Palo Alto does not require local businesses to contribute to city services through a local business tax. As Palo Alto looks to the future, City leaders have determined that the time has come to seek voter approval to tax mid- sized and large businesses operating in the City, so that the business sector does its part to help the City to meet evolving challenges, including t he need for long term stable funding for public safety services and the need for significant investments in affordable housing and grade separated train crossings that maintain mobility for vehicles, bicyclists, and pedestrians.

B. A pro
posed ordinance attached hereto and incorporated herein by reference as Attachment “A” (the “Ordinance”) would amend the Palo Alto Municipal Code to add Chapter

2.37 to Title 2, to establish a general tax on businesses operating in the City of Palo Alto that would be imposed at a monthly rate for each square foot occupied by a business in the city, with no tax imposed on the first 10,000 square feet occupied by a business in the city , and a tax of eleven cents for each square foot occupied by a business in the city above 10,000 square feet.

The tax would be imposed at half the rate for the first two years . Annual adjustments would be made for inflation, limited to 5%. Grocery stores would be exempt, and offsets would be made for businesses that remit trans ient occupancy tax and for payers of discretionary sales and use tax. The business tax would terminate in thirty-five years.

C. Proceeds from the tax would be placed in the general fund for general governmental purposes. The City Council has approved advisory spending guidelines after considering input from residents and stakeholders on City spending priorities.

D. By
its Resolution No. 10045 the City Council called a general municipal election for November 8, 2022 (“Election”).

E. Pursuant to Government Code Section 53724 and Election Code Section 9222, the City Council desires to submit the Ordinance to the voters of the City.

The City Council of the City of Palo Alto RESOLVES as follows:

SEC
TION 1. Findings. The City Council finds and determines that each of the findings set forth above are true and correct.

SEC
TION 2. General Tax Election. The City Council proposes to impose the general tax set forth in the Ordinance and to present this proposal to the voters on November 8, 2022.

ATTACHMENT A a
Packet Pg. 192
AA2

NOT YET APPROVED
2 SEC
TION 3. Measure. Pursuant to Elections Code Section 9222, the City Council hereby submits the Ordinance to the vote rs at the Election and orders the following question to be submitted to the voters at the Election:

Shall the measure to raise funds for public safety,
affordable housing, rail crossing safety, homeless services, and general city services, by levying a tax on businesses in the City of Palo Alto at a monthly rate of 11 cents per square foot occupied by a business, with annual inflation adjustments (limited to 5%) and exemptions for grocery
stores and businesses under 10,000 square feet, raising approximately $17 million annually for 35 years, be
adopted?
YES
NO
This
question requires the approval of a majority of those casting votes.

SEC
TION 4 . Adoption of Measure. The measure to be submitted to the voters is attached to this Resolution as Exhibit A and incorporated herein by this reference.

SEC
TION 5. Notice of Election. Notice of the time and place of holding the election is hereby given, and the City Clerk is authorized, instructed and directed to give further or additional notice of the election, in time, form and manner as required by law.

SEC
TION 6. Impartial Analysis. Pursuant to California Elections Code Section 9280, the City Council hereby directs the City Clerk to transmit a copy of the measure to the City Attorney.

The City Attorney shall prepare an impartial analysis of the measure, not to exceed 500 words in length, showing the effect of the measure on the existing law and the operation of the measure, and transmit such impartial analysis to the City Clerk on or before August 23, 2022.

SECTION 7 . Ballo t Arguments . Pursuant t o Elections Code Section 9286 et. seq., August 16, 2022 at 5:00 p.m. shall be the deadline for submission of arguments in favor of, and arguments against, any local measures on the ballot. If more than one argument for and/or against is received, the priorities established by Elections Code Section 9287 shall control.

SEC
TION 8. Rebuttal Arguments. The provisions of Elections Code Section 9285 shall control the submission of any rebuttal arguments. The deadline for filing rebuttal arguments shall be August 23, 2022 at 5:00 p.m.

SECTION 9. Co nsolidation Request. The Council of the City of Palo Alto requests the governing body of any other political subdivision, or any officers otherwise authorized by law, to partially or completely consolidate such elections and the City Council consents to such consolidation. The Council requests the Board of Supervisors of Santa Clara County to include on the ballots and sample ballots, all qualified measures submitted by the City Council to be ratified by the qualified electors of the City of Palo Alto. The Council acknowledges that the election will a
Packet Pg. 193
AA2

NOT YET APPROVED
3 be held and conducted according to procedures in the Elections Code, including Section 10418.

SE
CTION 10. Request for County Services. Pursuant to Section 10002 of the California Elections Code, the Council of the City of Palo Alto hereby requests the Board of Superv isors of Santa Clara County to permit the Registrar of Voters to render services to the City of Palo Alto relating to the conduct of Palo Alto’s General Municipal and Special Elections which are called to be held on Tuesday, November 8, 2022. The services shall be of the type normally performed by the Registrar of Voters in assisting the clerks of municipalities in the conduct of elections including, but not limited to, checking registrations, mailing ballots, hiring election officers and arranging for polling places, receiving absentee voter ballot applications, mailing and receiving absent voter ballots and opening and counting same, providing and distributing election supplies, and furnishing voting machines.

SE
CTION 11 . Transmittal of Resolut ion. The City Clerk is hereby directed to submit forthwith a certified copy of this resolution to the Santa Clara County Board of Supervisors and to the Registrar of Voters.

IN
TRODUCED AND PASSED:

AYE
S:

NOE
S:

ABSE
NT:

ABSE
NTIONS:

ATTE
ST: APPROVED:
_____________
________________ ______________________________
City Clerk Mayor
_____________
_________________
APPROVED AS TO FORM: City Manager
_____________
________________ ______________________________
City Attorney Director of Administrative Services
a
Packet Pg. 194
AA2

NOT YET APPROVED
4 Ex
hibit A
Or
dinance No. _____
Ordinance of the Council of the City of Palo Alto Amending Title 2 of the Municipal Code to Add Chapter 2.37 to Establish a Tax on Businesses Operating in the City of Palo Alto
Th
e People of the City of Palo Alto do ordain as follows:

SECTION 1. T itle 2 (Administrative Code) of the Palo Alto Municipal Code is hereby amended by adding Chapter 2.37 (Business Tax) as follows:

Cha
pter 2.37

BUSINESS TAX

2.37.010 Title
Thi
s chapter is the “City of Palo Alto Business Tax Ordinance.”

2.37.020 Definitions
The
definitions in this section apply to the words and phrases used in this chapter unless the context clearly indicates otherwise.
(a) “
Business” means any commercial enterprise, trade, calling, art, vocation, profession, occupation, or means of livelihood, whether or not carried on for gain or profit. (b) “
Business operator” means a person who transacts, maintains, manages, operates, controls, engages in, conducts, carries on, or owns a business in the city. It does not include the employee of a business who is not an owner or proprietor of the business. (c) “C
alendar year” means the year beginning January 1 and ending December 31. (d) “
City” means the City of Palo Alto.
(e) “
CPI Index” means the Consumer Price Index—All Urban Consumers for All Items for the San Francisco-Oakland-Hayward Area or any successor to that index designated by the Federal Bureau of Labor Statistics or the city council. (f) “
Fiscal year” means the year beginning July 1 and ending June 30. (g) “
Fixed place of business” means a place of business located in the city boundaries and occupied for the particular purpose of operating a business. a
Packet Pg. 195
AA2

NOT YET APPROVED
5 (h) “
Grocery store” means a business that exists for the primary purpose of selling a range of food items to consumers for consumption off site, such as canned foods; dry goods; fresh produce; fresh meats, fish, and poultry; and any area that is not separately owned within the store where food is prepared and served, including a bakery, deli, and meat and seafood departments, or as otherwise defined in 14 CCR section 18982(a)(3), provided that any store that combines grocery items with other retail products or services is a grocery store for the purpose of this chapter only if two-thirds or more of the occupied space is designated to the sale of grocery items as listed in this section. (i) “
Hotel” has the meaning provided in section 2.33.010.
(j) “
Operate” means to conduct a business and includes all stages of conducting a business from initial planning to the wind-down of a business, whether or not a profit is being made.
(k) “
Person” means any individual, firm, partnership, joint venture, association, corporation, limited liability company, estate, trust, receiver, syndicate or other group or combination acting as a unit and includes the plural as well as the singular number. (l) “
Quarter” means the three-month quarter of the fiscal year. The “first quarter” is the months of July, August, and September; the “second quarter” is the months of October, November, and December; the “third quarter” is the months of January, February, and March; and the “fourth quarter” is the months of April, May, and June. The term “same quarter of the previous fiscal year” means the quarter of the same number in the previous fiscal year.
(m) “
Square footage” means the rentable square footage used by a business as specified in a business’s lease or, if the business floor space is owned by the business, as calculated in the same manner as if the area was rented using commonly accepted standards of measurement for leasing purposes such as the Standard Methods of Measurement published by the Building Owners and Managers Association (BOMA). Any method of measurement used must meet the following minimum standards:
(1) I
t shall be computed by measuring to the inside finish of permanent outer building walls and shall include space used by columns and projections necessary to the building.
(2) I
t shall include both the area used by the business and a proportionate share of the building service areas such as lobbies, corridors and other common areas in a building unless assigned to another business for tax calculation purposes. (3) I
t shall not include vertical penetrations through the building such as stairs, elevators, or heating, ventilation, air conditioning, utility, or telephone systems, except on the lowest floor of stairs and elevators.
a
Packet Pg. 196
AA2

NOT YET APPROVED
6 (4) F
or the business of renting or leasing property, it shall include area used primarily for the business operator’s offices and operational facilities. (5) I
t shall not include residential uses, including multiple-family use as defined in section 18.04.030(102), two-family use as defined in section 18.04.030(141), single-family residential use as defined in section 18.04.030(86)(A)), mobile home park as defined in section18.04.030(97), residential care homes as defined in section 18.04.030(124), supportive housing as defined in section

18.04.030(135.5), transitional housing as defined in section 18.04.030(138), emergency shelter as defined in section 18.04.030(50), and any equivalent residential use defined by the city.
(6) I
t shall include hotel as defined in section 18.04.030(73). (7) S
quare footage for businesses with multiple locations will be measured and tax assessed will be calculated based on the aggregate square footage for the business for all locations in the city.
(n) “
Tax Administrator” means the Director of Administrative Services, or successor position, or their designee.
(o) “
Transient Occupancy Tax” means the tax imposed under section 2.33.020. (p) “
Transitory business” means a business that operates in the city for less than 90 days in the course of one calendar year (such as seasonal sale lots, special events, concerts/performances/circuses, filming, and party rentals). (q) “
Vacant” means a severable portion of the physical location that a business is occupying, such as an entire floor, a building, or a portion of a floor with independent entrance and exit, that is free from any use, fixtures, furniture, and equipment, and is immediately available for use by a new tenant or owner.

2.37.030 Obligation to Pay Business Tax
(a) I
t is unlawful for any business operator, either for themselves or for any other person, to operate in the city any business taxed under this chapter without paying all business tax required by this chapter.
(b) I
f a business has more than one business operator, then the payment of the business tax by one business operator excuses any other business operators from the obligation to pay the business tax for that period for which the tax has been paid. (c) The
requirement to pay business tax is in addition to and separate from the requirement to obtain a business registration certificate under section 4.60.030. a
Packet Pg. 197
AA2

NOT YET APPROVED
7 (d) T
he payment of business tax does not authorize the doing of any act which the person or business paying the business tax is not otherwise entitled to do and does not excuse the business from complying with other applicable Code requirements.

2.37.040 Imposition of Business Tax
Any
business operator operating a business at a fixed place of business in the city must pay a business tax at the following rates:
(a) B
eginning January 1, 2023, the tax shall be imposed at the following rates:
(1) Fo
r the first 10,000 square feet occupied by a business in the city, no tax shall be imposed.
(2) For e
ach square foot occupied by a business in the city over 10,000 square feet, a monthly tax of five and one-half (5.5) cents per square foot shall be imposed. (b) B
eginning January 1, 2025, the tax shall be imposed at the following rates:
(1) Fo
r the first 10,000 square feet occupied by a business in the city, no tax shall be imposed.
(2) For e
ach square foot occupied by a business in the city over 10,000 square feet, a monthly tax of eleven (11) cents per square foot shall be imposed.

2.37.050 Annual CPI Adjustment of Tax Rate
(a) B
eginning with the 2026-27 fiscal year, and each fiscal year thereafter, the tax rates in subdivisions (b)(1) and (b)(2) of section 2.37.040 shall be automatically increased by a percentage equal to the percentage increase in the CPI Index in the previous calendar year (“the CPI Increase”).
(b) N
otwithstanding subdivision (a) of this section, in any year in which the CPI Increase is more than 5%, the increase in the tax rate will be limited to 5%.

2.37.060 Disposition of Tax Revenue
The
tax imposed by this chapter is for the purpose of raising revenue for the general governmental purposes of the city. All of the proceeds from the tax imposed by this chapter shall be placed in the city’s general fund.

2.37.070 Exemptions from Tax
(a) T
he following businesses are exempt from the tax imposed by this chapter:
a
Packet Pg. 198
AA2

NOT YET APPROVED
8 (1) A
ny business exempt from the tax by the laws of the United States or the State of California;
(2) Gr
ocery stores;
(3) B
usinesses that occupy or use 10,000 square feet or less in the city; and (4) T
ransitory businesses.
(b) I
f a business operator operates a single integrated business that has two or more parts, one or more of which could be exempt from the tax imposed by this chapter if operated as a separate business, the city may, at its discretion, exempt from the tax any part of the business that would be exempt if operated as a separate business, provided the business’s square footage can be reasonably allocated between the parts. If the city determines that the square footage cannot be reasonably allocated between the different parts of the business, then the entire business shall be taxed, unless to do so would violate a law of the United States or the State of California.

2.37.080 Business Tax Offsets
(a) A
business operator that operates a hotel in the city may deduct from the business tax it owes for a quarter for the business of operating the hotel an amount equal to the total transient occupancy tax collected and remitted to the city in the same quarter of the previous fiscal year from transients staying at the hotel. (b) T
he business operator of a business that has discretion to determine the location of the place of sale, place of use, or principal place of negotiation for sales or use tax purposes and which exercises that discretion and designates the city as the place of sale, place of use, or principal place of negotiation for sales or use tax purposes which results in the city receiving sales or use tax revenues that it would not otherwise have received, but for the business’s exercise of its discretion to designate the city as the place of sale, place of use, or principal place of negotiation for sales or use tax purposes (“Discretionary Sales or Use Tax Sales”) may deduct from the business tax it owes for a quarter an amount equal to one half of the total sales tax or use tax received by the city from the Discretionary Sales or Use Tax Sales of that business in the same quarter of the previous fiscal year. This offset can offset up to, but no more than, 75% of the business’s quarterly business tax. The city and a business operator may enter into an agreement implementing this section.
(c) A bus
iness claiming an offset under this section must claim the offset with its tax filing for the quarter for which the offset is claimed.
(1) I
f the information necessary for a business to claim an offset is not available, the business may defer claiming an offset for up to one year or for another period of a
Packet Pg. 199
AA2

NOT YET APPROVED
9 time set by written agreement with the city.
(2) T
he Tax Administrator may require a business claiming an offset to submit additional information to support the claim of the offset. The request for additional information must be made in writing and the information must be provided within thirty (30) days.
(3) I
f the Tax Administrator determines that an offset claimed by a business is incorrect, the Tax Administrator may make an Initial Determination of the amount, if any, of the offset and the amount of tax due under subdivision (a) of section 2.37.150.

2.37.090 Quarterly Tax Payments
(a) T
he tax imposed by this chapter shall be paid quarterly. The tax for each quarter is due the first day of the following quarter and is delinquent thirty (30) days later. (b) Fo
r the first quarter in which a business begins operating in the city, the business’s tax shall be prorated for the number of days that the business was operating in the quarter. (c) For t
he last quarter in in which a business operates in the city before closing, the business’s tax shall be prorated for the number of days that the business was operating in the quarter.

2.37.100 Business Tax Filing for a New Business
Whe
n a business begins operating in the city for the first time, the business operator must provide the Tax Administrator with the following information, verified by the business operator as true and correct under penalty of perjury of the laws of the State of California, before beginning the operation of the business in the city:
(a) T
he name of the business and the address or addresses at which it will be operating in the city;
(b) T
he date on which the business will begin operating;
(c) The
nature of the business’s activities;
(d) T
he square footage in which the business will be operating in the city; and (e) An
y other information required by the Tax Administrator.
//
//
a
Packet Pg. 200
AA2

NOT YET APPROVED
10 2.37.110 Quarterly Tax Returns
Wi
th each quarterly tax payment, a business operator must submit a quarterly tax return which contains the following information, verified by the business operator as true and correct under penalty of perjury of the laws of the State of California:
(a) T
he name of the business and the address or addresses at which it is operating in the city;
(b) T
he nature of the business’s activities;
(c) The
square footage in which the business is operating in the city; (d) I
f the business operator claims an offset under section 2.37.080, sufficient information and documentation to establish the business’s right to the offset and the amount of the offset;
(e) A
ny other information required by the Tax Administrator; and (f) T
he amount of tax due based on the square footage of the business.

2.37.120 Agreements for Installment Payments
Th
e Tax Administrator may enter into an agreement with a business operator to allow a business operator to pay the tax on a more or less frequent basis.

2.37.130 Businesses Operating in the Same Location
(a) E
ach business operator operating a business in a location where one or more other businesses are also operating is obligated to pay business tax measured by the square footage occupied by that business.
(b) T
he payment of business tax by a business operator absolves any other business operator from having to pay business tax measured by the same square footage. (c) Two
or more business operators that are operating businesses in the same square footage may contractually agree which business will pay the business tax measured by that square footage.

2.37.140 Delinquent Taxes (Penalties and Interest)
(a) W
hen a tax becomes delinquent, a penalty of 10% of the amount of the delinquent tax will be added to the amount of tax due. If the tax remains unpaid sixty (60) days after becoming delinquent, an additional penalty of 25% of the amount of the delinquent tax (excluding accrued interest and the initial penalty) will be added to the amount of tax a
Packet Pg. 201
AA2

NOT YET APPROVED
11 due.
(b) O
n the first of each month that a tax is delinquent, interest in the amount of 1.5% of the delinquent amount, excluding penalties and interest, will be added to the amount of tax due.
(c) A bu
siness operator may apply to the Tax Administrator for a reduction or waiver of any accrued penalties or interest, and the Tax Administrator may reduce or waive any accrued penalties or interest upon a finding of good cause.

2.37.150 Administrative Procedure to Assess or Correct Tax (a) I
f the Tax Administrator determines that a business operator has incorrectly reported any information to the city or has not paid all or any of the tax, penalties, or interest that are due, the Tax Administrator may, using any information available to the Tax Administrator, issue an Initial Determination stating what the Tax Administrator believes to be the correct information and, if new or additional tax, penalties, or interest are due, how much tax, penalties, or interest are due. An Initial Determination must be issued within five (5) years of the last day of the quarter to which the Initial Determination applies, except in the case of an audit conducted under section 2.37.200, in which case it must be issued within ninety (90) days of the completion of the audit and can apply to any of the quarters that were subject to the audit. The Initial Determination shall be served on the business operator either personally or by U.S. mail to the most recent address for the business operator in the Tax Administrator’s records. Service is effective upon deposit of the Initial Determination in the U.S. Mail. (b) A
business operator affected by an Initial Determination may within fifteen (15) days of service of an Initial Determination contest the Initial Determination and request a hearing before the Tax Administrator by filing with the Tax Administrator a written request for a hearing. The further accrual of penalties and interest shall be tolled upon the filing of a request for a hearing. If a business operator does not contest an Initial Determination and request a hearing with the Tax Administrator within fifteen (15) days of service of the Initial Determination, the Initial Determination shall become final and cannot be appealed.
(c) If a
business operator timely contests an Initial Determination and requests a hearing, the Tax Administrator shall set a hearing within thirty (30) days of the filing of the request for a hearing. Notice of the hearing shall be served on the business operator either personally or by U.S. mail to the most recent address for the business operator in the Tax Administrator’s records.
(d) A
t the hearing the business operator may present evidence and argument regarding the Initial Determination to show why the Initial Determination is incorrect and to show what the determination of the Tax Administrator should be. Within sixty (60) day after the close of the hearing, the Tax Administrator shall serve a Final Determination, setting a
Packet Pg. 202
AA2

NOT YET APPROVED
12 forth the Tax Administrator’s determination of the facts and issues that were the subject of the Initial Determination. The Final Determination shall be served on the business operator either personally or by U.S. mail to the most recent address for the business operator in the Tax Administrator’s records. Service is effective upon deposit of the Final Determination in the U.S. Mail. Unless an appeal of a Final Determination is filed under section 2.37.170, any penalties or interest tolled under subdivision (b) of this section will resume accruing ten (10) days after the service of the Final Determination.

2.37.160 General Administrative Remedy
(a) A
ny person affected by a decision of the Tax Administrator (“the challenger”), except for decisions under section 2.37.150, may challenge that decision by filing a written objection to the decision with the Tax Administrator. The objection must be filed within fifteen (15) days of the issuance of the decision being challenged. If the Tax Administrator was required to provide notice of the decision, then the time to file an objection to the decision begins to run from the date of service of the notice of the decision. The Tax Administrator shall serve a written response to the objection within thirty (30) days of the filing of the objection, which period can be extended by the Tax Administrator for an additional thirty (30) days. The Tax Administrator’s response to the objection shall be served on the challenger either personally or by U.S. mail to the most recent address for the challenger in the Tax Administrator’s records. (b) T
he challenger may request a hearing on the Tax Administrator’s response to the objection by filing a request for a hearing with the Tax Administrator within fifteen (15) days of service of the response to the objection. If a timely request for a hearing on a response to the objection is filed with the Tax Administrator, the Tax Administrator shall set a hearing within thirty (30) days of the filing of the request for a hearing. Notice of the hearing shall be served on the challenger either personally or by U.S. mail to the most recent address for the challenger in the Tax Administrator’s records. (c) At
the hearing the challenger may present evidence and argument regarding the decision being challenged to show why the decision is incorrect and to show what it should be. Within sixty (60) days after the close of the hearing, which the Tax Administrator may extend for an additional sixty (60) days, the Tax Administrator shall serve a Final Determination on the decision, setting forth the Tax Administrator’s determination of the decision that was challenged. The Final Determination shall be served on the challenger either personally or by U.S. mail to the most recent address for the challenger in the Tax Administrator’s records. Service is effective upon deposit of the Final Determination in the U.S. mail.

2.37.170 Appeals
(a) A Fin
al Determination of the Tax Administrator under section 2.37.150, subdivision (d), or section 2.37.160, subdivision (c), can be appealed to the City Manager by filing a written notice of appeal with the City Manager within fifteen (15) days of service of the a
Packet Pg. 203
AA2

NOT YET APPROVED
13 notice of the Final Determination being appealed.
(b) O
nly a business operator who files a timely request for a hearing on an Initial Determination under section 2.37.150 and participates in the hearing or a challenger who files an objection to a decision and files a request for a hearing on the response to the objection under section 2.37.160 and participates in the hearing can file an appeal under this section.
(c) If a
timely appeal is filed with the City Manager, the City Manager, or the City Manager’s designee, shall set a hearing within thirty (30) days of the filing of the appeal, which may be extended by the City Manager for an additional thirty (30) days. Notice of the hearing shall be served on the appellant either personally or by U.S. mail to the most recent address for the challenger in the Tax Administrator’s records. The tolling of the accrual of penalties or interest under section 2.37.150, subdivision (b), shall continue upon the timely filing of an appeal under this section.
(d) A
t the hearing the appellant and the Tax Administrator may present evidence and argument regarding the decision being appealed to show why the decision is correct or incorrect and to show what it should be. Within sixty (60) days after the close of the hearing, which the City Manager or the City Manager’s designee may extend for an additional sixty (60) days, the City Manager or the City Manager’s designee shall serve a written decision, setting forth the resolution of the appeal. The decision shall be served on the appellant either personally or by U.S. mail to the most recent address for the appellant in the City Manager’s records. Service is effective upon deposit of the decision in the U.S. Mail. Any penalties and interest that were tolled under section 2.37.150, subdivision (b), shall resume accruing ten (10) days after the service of the decision. (e) A d
ecision of the City Manager, or the City Manager’s designee, served under subdivision (d) of this section is subject to judicial review under sections 1094.5 and 1094.6 of the Code of Civil Procedure with a writ petition filed in the appropriate court within ninety (90) days of the service of the written decision. Any tax, penalties, or interest determined by the decision to be owed to the city by the appellant must be paid to the city as a precondition to filing a writ petition challenging the decision, but a claim for a refund under section 2.37.190 does not have to be filed before filing a writ petition.

2.37.180 Constitutional Apportionment
(a) N
o tax imposed by this chapter shall be applied to a business operator so as to constitute an undue burden on interstate commerce or intercity commerce or be violative of the equal protection or due process clauses of the United States or California constitutions.
(b) A
business operator who contends that the application of a tax imposed by this chapter on the business operator constitutes an undue burden on interstate commerce or a
Packet Pg. 204
AA2

NOT YET APPROVED
14 intercity commerce or violates the equal protection or due process clauses of the United States or California constitutions may apply to the Tax Administrator for an apportionment of the tax imposed on the business operator that would remove the constitutional violation by filing a written request with the Tax Administrator that explains the factual and legal basis for the claimed constitutional violation and proposes a method of apportionment that would resolve the alleged constitutional violations. (c) Th
e Tax Administrator, in consultation with City Attorney, shall review the application and within sixty (60) days of the filing of the application, which deadline may be extended for an additional sixty (60) days, issue a decision on the application. The decision on the application shall be served on the business operator either personally or by U.S. mail to the most recent address for the challenger in the Tax Administrator’s records. The decision can be challenged under section 2.37.160.

2.37.190 Refunds
(a) A b
usiness operator who believes that any tax, penalty, or interest has been illegally, erroneously, or mistakenly paid to, collected by, or otherwise received by the city may file a claim for a refund of the amount of tax, penalty, or interest claimed to have been improperly received by the city.
(b) T
he claim must be filed with the Tax Administrator and signed under penalty of perjury by the business operator. The claim must state:
(1) Th
e legal and factual basis for the refund claim;
(2) T
he amount of tax, penalty, or interest allegedly improperly received by the city; (3) T
he date or dates that the improper payments were made to the city; and (4) T
he address of the claimant.
(c) Th
e claim must be filed with the Tax Administrator within one (1) year of the date of the allegedly improper payment to the city.
(d) Th
e Tax Administrator shall provide a written decision on the claim within thirty (30) days of the filing of the claim by serving the decision on the claimant either personally or by U.S. mail to the address provided in the claim. Service is effective upon deposit of the response in the U.S. Mail.
(e) A claiman
t may challenge the Tax Administrator’s decision on a refund claim under section 2.37.160.
(f) T
his section does not apply to:
a
Packet Pg. 205
AA2

NOT YET APPROVED
15 (1) A claim for a refund arising out of a decision of the Tax Administrator, City Manager, or City Manager’s designee under sections 2.37.150, 2.37.160,

2.37.170, or 2.37.190; or
(2) A
claim that could have been asserted by the claimant, but was not, under sections 2.37.150, 2.37.160, 2.37.170, or 2.37.190.

2.37.200 Audits
(a) T
he Tax Administrator may conduct an audit of any business operator to ensure proper compliance with the requirements of this chapter.
(b) T
o initiate an audit the Tax Administrator shall provide written notice to the business operator that is the subject of the audit of the initiation of the audit by serving the notice personally or by U.S. mail to the most recent address for the business operator in the Tax Administrator’s records. The notice shall state the period of time subject to the audit.
(c) No
tice of the initiation of an audit for a quarter for which either a business tax filing for a new business or quarterly tax return was submitted under section 2.37.100 or section

2.37.110 must be served within five (5) years of the last day of the quarter to which the filing or return applied.
(d) N
otice of the initiation of an audit for a quarter for which neither a business tax filing for a new business nor a quarterly tax return was submitted under section 2.37.100 or section 2.37.110, but for which the business was registered as a business under section

4.60.030, must be served within seven (7) years of the last day of the quarter for which the filing or return should have been filed.
(e) N
otice of the initiation of an audit for a quarter for which neither a business tax filing for a new business nor a quarterly tax return was submitted under section 2.37.100 or section 2.37.110, and for which the business was not registered as a business under section 4.60.030, must be served within ten (10) years of the last day of the quarter for which the filing or return should have been filed.
(f) U
pon completion of an audit, the Tax Administrator may make an Initial Determination under subdivision (a) of section 2.37.150 of any taxes, penalties, and interest determined to be owed and not paid for the audit period. The Initial Determination must be issued within ninety (90) days of the completion of the audit. If a business operator subject to audit is unable or unwilling to provide sufficient records to enable the Tax Administrator to verify compliance with this chapter, the Tax Administrator is authorized to make a reasonable estimate of the amount of tax due and the reasonable estimate shall be entitled to a rebuttable presumption of correctness. a
Packet Pg. 206
AA2

NOT YET APPROVED
16 2.37.210 Maintenance and Review of Records
(a) B
usiness operators must maintain for six (6) years records of square footage and information necessary to calculate the tax. If the Tax Administrator serves notice of the initiation of an audit, the information pertinent for the quarters subject to the audit must be maintained until the conclusion of the audit.
(b) T
he Tax Administrator may with reasonable notice inspect the premises and records of the business operator.
(c) Th
e Tax Administrator may request the city council to issue an administrative subpoena for records of a business operator or other persons with relevant information.

2.37.220 Confidentiality of Records
All doc
uments submitted to the city by a business operator under this chapter and all documents of a business operator inspected by the Tax Administrator in the conduct of an audit are presumed to be confidential and will not be subject to public inspection to the fullest extent allowed by law and must be maintained so that the contents of the documents will not become known except to persons charged with the administration of this chapter. Confidential documents may be shared with consultants retained by the city to aid in the administration of this chapter, provided the consultants agree to maintain the confidentiality of the documents.

However, nothing in this section precludes the city from aggregating information and releasing it in a manner that does not identify any particular business or connect any information with a particular business.

2.37.230 Action to Collect Delinquent Taxes
(a) A
ny tax, penalty, and interest imposed on a business operator under this chapter is a debt owed by the business operator to the city, which may be recovered in an action filed by the city in a court of competent jurisdiction. (b) A
n action under this section shall be filed within three (3) years of an Initial Determination becoming final under subdivision (b) of section 2.37.150, the issuance of a Final Determination under subdivision (d) of section 2.37.150 that is not appealed, the issuance of a Final Determination under subdivision (c) of section 2.37.160 that is not appealed, or the issuance of a decision under subdivision (d) of section 2.37.170. (c) Duri
ng the pendency of an action filed under this section, interest will continue to accrue under subdivision (b) of section 2.37.140 until the entry of judgment. (d) B
efore filing an action, the city may serve the business operator either personally or by U.S. mail at the most recent address for the business operator in the Tax Administrator’s records with notice of the pending action and give the business operator fifteen (15) days to pay all of the delinquent taxes, penalties, and fees. If all of the of the delinquent a
Packet Pg. 207
AA2

NOT YET APPROVED
17 taxes, penalties, and fees are not paid within the fifteen-day period, then an additional penalty of 25% of the amount of the delinquent tax (including accrued penalties and interest) shall be added to the total delinquency and may be recovered in the action.

2.37.240 Errors Not Binding on the City
No
error by the Tax Administrator or any other officer, employee, or agent of the city in the application of this chapter shall prevent, prejudice, or estop the collection by or for the city of the full amount of tax owed by any person under this chapter.

2.37.250 Dates
If t
he last day for the performance of any act under this chapter is a Saturday, Sunday, or holiday recognized by the city, then the date for the performance of that act is extended to the next day that is not a Saturday, Sunday, or holiday recognized by the city.

2.37.260 Rules and Regulations
(a) T
he Tax Administrator may adopt rules and regulations that are not inconsistent with the provisions of this chapter as may be necessary to aid in the application and enforcement of this chapter.
(b) T
he Tax Administrator may adopt rules providing for the service or filing of any notices, filings, returns, or submittals required by this chapter. These rules may provide alternative means for serving or filing any notice, filing, return, or submittal, and may clarify the method of serving or filing any notice, filing, return, or submittal provided for in this chapter.

2.37.270 City Council Amendments
(a) T
he city council may amend this chapter in any way it deems necessary without the approval of the electorate, provided the amendment does not increase the amount of tax that any person would pay.
(b) A
ny amendment to this chapter that would reduce the amount of tax any taxpayer would pay, either temporarily or permanently, must be approved by two-thirds (2/3) of the members of the city council.
(c) No
twithstanding subdivision (a) of this section, the city council may with the approval of two-thirds (2/3) of its members and without approval of the electorate reduce, revise, or eliminate any of the business tax offsets in section 2.37.080.

2.37.280 Severability
If
any word, phrase, sentence, part, section, subsection, or other portion of this chapter, or any application thereof to any person or circumstance is declared void, unconstitutional, or a
Packet Pg. 208
AA2

NOT YET APPROVED
18 invalid for any reason, then such word, phrase, sentence, part, section, subsection, or other portion, or the prescribed application thereof, shall be severable, and the remaining provisions of this chapter, and all applications thereof, not having been declared void, unconstitutional or invalid, shall remain in full force and effect. The People of the City of Palo Alto hereby declare that they would have passed this ordinance, and each section, subsection, sentence, clause and phrase thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases had been declared invalid or unconstitutional.

2.37.290 Savings Clause
No
section, clause, part, or provision of this chapter shall be construed as requiring the payment of any tax that would be in violation of the Constitution or laws of the United States of America or of the Constitution or laws of the State of California.

2.37.300 Sunset
The
tax imposed by this Chapter shall cease to be imposed on January 1, 2058.

SECTION 2. Implementation Procedures

1. The new tax imposed by this ordinance will go into effect on January 1, 2023.

2. Not
withstanding sections 2.37.090, 2.37.100, and 2.37.110 of the codified part of this ordinance, the tax imposed by this ordinance will initially be due on the following schedule:
(a) T
he initial tax payment for the tax that has accrued since January 1, 2023 will be due on January 1, 2024, or on a subsequent date established by the Tax Administrator and will be delinquent 30 days later if not paid.
(b) W
ith its initial tax payment, each business shall provide the following information:
(1) T
he name of the business and the address or addresses at which it will be operating in the city;
(2) T
he nature of the business’s activities;
(3) T
he square footage in which the business will be operating in the city; (4) I
f the business operator claims an offset under section 2.37.080, sufficient information and documentation to establish the business’s right to the offset and the amount of the offset;
(5) A
ny other information required by the Tax Administrator; and (6) T
he amount of tax due based on the square footage of the business. a
Packet Pg. 209
AA2

NOT YET APPROVED
19 (c) A bus
iness that begins operating for the first time after January 1, 2023, must submit its initial tax payment and initial information by the date provided in this uncodified section or by the date provided in codified section 2.37.090, whichever is later.

SECTION 3. General Tax. Proceeds of the tax imposed by this Ordinance shall be deposited in the general fund of the City and shall be available for any legal purpose.

SECTION 4. Effective Date. This ordinance shall be effective only if approved by a majority of the voters and shall go into effect immediately after the vote is declared by the City Council.

SECTION 5. Execution. The Mayor is hereby authorized to attest to the adoption of this Ordinance by the voters of the City by signing where indicated below.

I he
reby certify that the foregoing Ordinance was PASSED, APPROVED and ADOPTED by the People of the City of Palo Alto voting on the 8th day of November, 2022.

ATTE
ST:
_____________
_____________ ___________________________
City Clerk Mayor
APP
ROVED AS TO FORM: APPROVED:
_____________
______________ ___________________________
City Attorney City Manager
_____________
______________
Director of Administrative Services
a
Packet Pg. 210
AA2

NOT YET APPROVED
1 Resolution No. ______
Resolution of the Council of the City of Palo Alto Calling an Election for November 8, 2022 for Submittal to the Qualified Electors of the City a Measure Amending Title 2 of the Municipal Code to Add Chapter 2.37 to Establish a Tax on Businesses Operating in the City of Palo Alto

R E C I T
A L S
A. Unlik
e most communities in California, the City of Palo Alto does not require local businesses to contribute to city services through a local business tax. As Palo Alto looks to the future, City leaders have determined that the time has come to seek voter approval to tax mid- sized and large businesses operating in the City, so that the business sector does its part to help the City to meet evolving challenges, including t he need for long term stable funding for public safety services and the need for significant investments in affordable housing and grade separated train crossings that maintain mobility for vehicles, bicyclists, and pedestrians.

B. A pro
posed ordinance attached hereto and incorporated herein by reference as Attachment “A” (the “Ordinance”) would amend the Palo Alto Municipal Code to add Chapter

2.37 to Title 2, to establish a general tax on businesses operating in the City of Palo Alto that would be imposed at a monthly rate for each square foot occupied by a business in the city, with no tax imposed on the first 10,000 square feet occupied by a business in the city , and a tax of eleven cents for each square foot occupied by a business in the city above 10,000 square feet.

The tax would be imposed at half the rate for the first two years . Annual adjustments would be made for inflation, limited to 5%. Grocery stores would be exempt, offsets would be made for businesses that remit transient occupancy tax and for payers of discretionary sales and use tax , and total tax would be capped at $1 million per year. The business tax would terminate in thirty- five years.

C. Proceeds from the tax would be placed in the general fund for general governmental purposes. The City Council has approved advisory spending guidelines after considering input from residents and stakeholders on City spending priorities.

D. By i
ts Resolution No. 10045 the City Council called a general municipal election for November 8, 2022 (“Election”).

E. Pursuant to Government Code Section 53724 and Election Code Section 9222, the City Council desires to submit the Ordinance to the voters of the City.

The City Council of the City of Palo Alto RESOLVES as follows:

SEC
TION 1. Findings. The City Council finds and determines that each of the findings set forth above are true and correct.

SEC
TION 2. General Tax Election. The City Council proposes to impose the general tax set forth in the Ordinance and to present this proposal to the voters on November 8, ATTACHMENT B b
Packet Pg. 211
AA2

NOT YET APPROVED
2 2022.

SE
CTION 3. Measure. Pursuant to Elections Code Section 9222, the City Council hereby submits the Ordinance to the voters at the Electi on and orders the following question to be submitted to the voters at the Election:

Shall the measure to raise funds for public safety,
affordable housing, rail crossing safety, homeless services, and general city services, by levying a tax on businesses in the City of Palo Alto at a monthly rate of 11 cents per square foot occupied by a business, with annual inflation adjustments (limited to 5%) and exemptions for grocery
stores and businesses under 10,000 square feet, raising approximately $16.5 million annually for 35 years, be
adopted?
YES
NO
Th
is question requires the approval of a majority of those casting votes.

SE
CTION 4 . Adoption of Measure. The measure to be submitted to the voters is attached to this Resolution as Exhibit A and incorporated herein by this reference.

SE
CTION 5. Notice of Election. Notice of the time and place of holding the election is hereby given, and the City Clerk is authorized, instructed and directed to give further or additional notice of the election, in time, form and manner as required by law.

SE
CTION 6. Impartial Analysis. Pursuant to California Elections Code Section 9280, the City Council hereby directs the City Clerk to transmit a copy of the measure to the City Attorney.

The City Attorney shall prepare an impartial analysis of the measure, not to exceed 500 words in length, showing the effect of the measure on the existing law and the operation of the measure, and transmit such impartial analysis to the City Clerk on or before August 23, 2022.

SECTION 7 . B allot Arguments . Pursuant to Elections Code Section 9286 et. seq., August 16, 2022 at 5:00 p.m. shall be the deadline for submission of arguments in favor of, and arguments against, any local measures on the ballot. If more than one argument for and/or against is received, the priorities established by Elections Code Section 9287 shall control.

SE
CTION 8. Rebuttal Arguments. The provisions of Elections Code Section 9285 shall control the submission of any rebuttal arguments. The deadline for filing rebuttal arguments shall be August 23, 2022 at 5:00 p.m.

SECTION 9. C onsolidation Request. The Council of the City of Palo Alto requests the governing body of any other political subdivision, or any officers otherwise authorized by law, to partially or completely consolidate such elections and the City Council consents to such consolidation. The Council requests the Board of Supervisors of Santa Clara County to include on the ballots and sample ballots, all qualified measures submitted by the City Council to be ratified b
Packet Pg. 212
AA2

NOT YET APPROVED
3 by the qualified electors of the City of Palo Alto. The Council acknowledges that the election will be held and conducted according to procedures in the Elections Code, including Section 10418.

SE
CTION 10. Request for County Services. Pursuant to Section 10002 of the California Elections Code, the Council of the City of Palo Alto hereby requests the Board of Supervisors of Santa Clara County to permit the Registrar of Voters to render services to the City of Palo Alto relating to the conduct of Palo Alto’s General Municipal and Special Elections which are called to be held on Tuesday, November 8, 2022. The services shall be of the type normally performed by the Registrar of Voters in assisting the clerks of municipalities in the conduct of elections including, but not limited to, checking registrations, mailing ballots, hiring election officers and arranging for polling places, receiving absentee voter ballot applications, mailing and receiving absent voter ballots and opening and counting same, providing and distributing election supplies, and furnishing voting machines.

SE
CTION 11 . Transmittal of Resolution. The City Clerk is hereby directed to submit forthwith a certified copy of this resolution to the Santa Clara County Board of Supervisors and to the Registrar of Voters.

INTR
ODUCED AND PASSED:

AYE
S:

NOE
S:

ABSE
NT:

ABSE
NTIONS:

ATTE
ST: APPROVED:
_____________
________________ ______________________________
City Clerk Mayor
_____________
_________________
APPROVED AS TO FORM: City Manager
_____________
________________ ______________________________
City Attorney Director of Administrative Services
b
Packet Pg. 213
AA2

NOT YET APPROVED
4 Ex
hibit A
Or
dinance No. _____
Ordinance of the Council of the City of Palo Alto Amending Title 2 of the Municipal Code to Add Chapter 2.37 to Establish a Tax on Businesses Operating in the City of Palo Alto
Th
e People of the City of Palo Alto do ordain as follows:

SECTION 1. T itle 2 (Administrative Code) of the Palo Alto Municipal Code is hereby amended by adding Chapter 2.37 (Business Tax) as follows:

Cha
pter 2.37

BUSINESS TAX

2.37.010 Title
Thi
s chapter is the “City of Palo Alto Business Tax Ordinance.”

2.37.020 Definitions
The
definitions in this section apply to the words and phrases used in this chapter unless the context clearly indicates otherwise.
(a) “
Business” means any commercial enterprise, trade, calling, art, vocation, profession, occupation, or means of livelihood, whether or not carried on for gain or profit. (b) “
Business operator” means a person who transacts, maintains, manages, operates, controls, engages in, conducts, carries on, or owns a business in the city. It does not include the employee of a business who is not an owner or proprietor of the business. (c) “C
alendar year” means the year beginning January 1 and ending December 31. (d) “
City” means the City of Palo Alto.
(e) “
CPI Index” means the Consumer Price Index—All Urban Consumers for All Items for the San Francisco-Oakland-Hayward Area or any successor to that index designated by the Federal Bureau of Labor Statistics or the city council. (f) “
Fiscal year” means the year beginning July 1 and ending June 30. (g) “
Fixed place of business” means a place of business located in the city boundaries and occupied for the particular purpose of operating a business. b
Packet Pg. 214
AA2

NOT YET APPROVED
5 (h) “
Grocery store” means a business that exists for the primary purpose of selling a range of food items to consumers for consumption off site, such as canned foods; dry goods; fresh produce; fresh meats, fish, and poultry; and any area that is not separately owned within the store where food is prepared and served, including a bakery, deli, and meat and seafood departments, or as otherwise defined in 14 CCR section 18982(a)(3), provided that any store that combines grocery items with other retail products or services is a grocery store for the purpose of this chapter only if two-thirds or more of the occupied space is designated to the sale of grocery items as listed in this section. (i) “
Hotel” has the meaning provided in section 2.33.010.
(j) “
Operate” means to conduct a business and includes all stages of conducting a business from initial planning to the wind-down of a business, whether or not a profit is being made.
(k) “
Person” means any individual, firm, partnership, joint venture, association, corporation, limited liability company, estate, trust, receiver, syndicate or other group or combination acting as a unit and includes the plural as well as the singular number. (l) “
Quarter” means the three-month quarter of the fiscal year. The “first quarter” is the months of July, August, and September; the “second quarter” is the months of October, November, and December; the “third quarter” is the months of January, February, and March; and the “fourth quarter” is the months of April, May, and June. The term “same quarter of the previous fiscal year” means the quarter of the same number in the previous fiscal year.
(m) “
Square footage” means the rentable square footage used by a business as specified in a business’s lease or, if the business floor space is owned by the business, as calculated in the same manner as if the area was rented using commonly accepted standards of measurement for leasing purposes such as the Standard Methods of Measurement published by the Building Owners and Managers Association (BOMA). Any method of measurement used must meet the following minimum standards:
(1) I
t shall be computed by measuring to the inside finish of permanent outer building walls and shall include space used by columns and projections necessary to the building.
(2) I
t shall include both the area used by the business and a proportionate share of the building service areas such as lobbies, corridors and other common areas in a building unless assigned to another business for tax calculation purposes. (3) I
t shall not include vertical penetrations through the building such as stairs, elevators, or heating, ventilation, air conditioning, utility, or telephone systems, except on the lowest floor of stairs and elevators.
b
Packet Pg. 215
AA2

NOT YET APPROVED
6 (4) F
or the business of renting or leasing property, it shall include area used primarily for the business operator’s offices and operational facilities. (5) I
t shall not include residential uses, including multiple-family use as defined in section 18.04.030(102), two-family use as defined in section 18.04.030(141), single-family residential use as defined in section 18.04.030(86)(A)), mobile home park as defined in section18.04.030(97), residential care homes as defined in section 18.04.030(124), supportive housing as defined in section

18.04.030(135.5), transitional housing as defined in section 18.04.030(138), emergency shelter as defined in section 18.04.030(50), and any equivalent residential use defined by the city.
(6) I
t shall include hotel as defined in section 18.04.030(73). (7) S
quare footage for businesses with multiple locations will be measured and tax assessed will be calculated based on the aggregate square footage for the business for all locations in the city.
(n) “
Tax Administrator” means the Director of Administrative Services, or successor position, or their designee.
(o) “
Transient Occupancy Tax” means the tax imposed under section 2.33.020. (p) “
Transitory business” means a business that operates in the city for less than 90 days in the course of one calendar year (such as seasonal sale lots, special events, concerts/performances/circuses, filming, and party rentals). (q) “
Vacant” means a severable portion of the physical location that a business is occupying, such as an entire floor, a building, or a portion of a floor with independent entrance and exit, that is free from any use, fixtures, furniture, and equipment, and is immediately available for use by a new tenant or owner.

2.37.030 Obligation to Pay Business Tax
(a) I
t is unlawful for any business operator, either for themselves or for any other person, to operate in the city any business taxed under this chapter without paying all business tax required by this chapter.
(b) I
f a business has more than one business operator, then the payment of the business tax by one business operator excuses any other business operators from the obligation to pay the business tax for that period for which the tax has been paid. (c) The
requirement to pay business tax is in addition to and separate from the requirement to obtain a business registration certificate under section 4.60.030. b
Packet Pg. 216
AA2

NOT YET APPROVED
7 (d) T
he payment of business tax does not authorize the doing of any act which the person or business paying the business tax is not otherwise entitled to do and does not excuse the business from complying with other applicable Code requirements.

2.37.040 Imposition of Business Tax
Any
business operator operating a business at a fixed place of business in the city must pay a business tax at the following rates:
(a) B
eginning January 1, 2023, the tax shall be imposed at the following rates:
(1) Fo
r the first 10,000 square feet occupied by a business in the city, no tax shall be imposed.
(2) For e
ach square foot occupied by a business in the city over 10,000 square feet, a monthly tax of five and one-half (5.5) cents per square foot shall be imposed. (b) B
eginning January 1, 2025, the tax shall be imposed at the following rates:
(1) Fo
r the first 10,000 square feet occupied by a business in the city, no tax shall be imposed.
(2) For e
ach square foot occupied by a business in the city over 10,000 square feet, a monthly tax of eleven (11) cents per square foot shall be imposed. (c) Th
e maximum amount of tax a business must pay is capped at $1,000,000 (one million dollars) per fiscal year.

2.37.045 Order of Calculations
Ta
x owed shall be determined by applying the terms of this ordinance in the following order: first, application of the tax rate in subdivisions (a) or (b) of section 2.37.040 to the square footage of the business; second, application of business tax offsets as set forth in section

2.37.080, if any; and third, application of the tax cap in subdivision (c) of section 2.37.040, if applicable.

2.37.050 Annual CPI Adjustment of Tax Rate
(a) B
eginning with the 2026-27 fiscal year, and each fiscal year thereafter, the tax rate in subdivision (b)(2) of section 2.37.040 and the cap in subdivision (c) of section 2.37.040 shall be automatically increased by a percentage equal to the percentage increase in the CPI Index in the previous calendar year (“the CPI Increase”). (b) N
otwithstanding subdivision (a) of this section, in any year in which the CPI Increase is b
Packet Pg. 217
AA2

NOT YET APPROVED
8 more than 5%, the increase in the tax rate in subdivision (b)(2) of section 2.37.040 will be limited to 5%.

2.37.060 Disposition of Tax Revenue
The
tax imposed by this chapter is for the purpose of raising revenue for the general governmental purposes of the city. All of the proceeds from the tax imposed by this chapter shall be placed in the city’s general fund.

2.37.070 Exemptions from Tax
(a) T
he following businesses are exempt from the tax imposed by this chapter:
(1) A
ny business exempt from the tax by the laws of the United States or the State of California;
(2) Gr
ocery stores;
(3) B
usinesses that occupy or use 10,000 square feet or less in the city; and (4) T
ransitory businesses.
(b) I
f a business operator operates a single integrated business that has two or more parts, one or more of which could be exempt from the tax imposed by this chapter if operated as a separate business, the city may, at its discretion, exempt from the tax any part of the business that would be exempt if operated as a separate business, provided the business’s square footage can be reasonably allocated between the parts. If the city determines that the square footage cannot be reasonably allocated between the different parts of the business, then the entire business shall be taxed, unless to do so would violate a law of the United States or the State of California.

2.37.080 Business Tax Offsets
(a) A
business operator that operates a hotel in the city may deduct from the business tax it owes for a quarter for the business of operating the hotel an amount equal to the total transient occupancy tax collected and remitted to the city in the same quarter of the previous fiscal year from transients staying at the hotel. (b) T
he business operator of a business that has discretion to determine the location of the place of sale, place of use, or principal place of negotiation for sales or use tax purposes and which exercises that discretion and designates the city as the place of sale, place of use, or principal place of negotiation for sales or use tax purposes which results in the city receiving sales or use tax revenues that it would not otherwise have received, but for the business’s exercise of its discretion to designate the city as the place of sale, place of use, or principal place of negotiation for sales or use tax purposes b
Packet Pg. 218
AA2

NOT YET APPROVED
9 (“Discretionary Sales or Use Tax Sales”) may deduct from the business tax it owes for a quarter an amount equal to one half of the total sales tax or use tax received by the city from the Discretionary Sales or Use Tax Sales of that business in the same quarter of the previous fiscal year. This offset can offset up to, but no more than, 75% of the business’s quarterly business tax. The city and a business operator may enter into an agreement implementing this section.
(c) A bus
iness claiming an offset under this section must claim the offset with its tax filing for the quarter for which the offset is claimed.
(1) I
f the information necessary for a business to claim an offset is not available, the business may defer claiming an offset for up to one year or for another period of time set by written agreement with the city.
(2) T
he Tax Administrator may require a business claiming an offset to submit additional information to support the claim of the offset. The request for additional information must be made in writing and the information must be provided within thirty (30) days.
(3) I
f the Tax Administrator determines that an offset claimed by a business is incorrect, the Tax Administrator may make an Initial Determination of the amount, if any, of the offset and the amount of tax due under subdivision (a) of section 2.37.150.

2.37.090 Quarterly Tax Payments
(a) T
he tax imposed by this chapter shall be paid quarterly. The tax for each quarter is due the first day of the following quarter and is delinquent thirty (30) days later. (b) Fo
r the first quarter in which a business begins operating in the city, the business’s tax shall be prorated for the number of days that the business was operating in the quarter. (c) For t
he last quarter in in which a business operates in the city before closing, the business’s tax shall be prorated for the number of days that the business was operating in the quarter.

2.37.100 Business Tax Filing for a New Business
Whe
n a business begins operating in the city for the first time, the business operator must provide the Tax Administrator with the following information, verified by the business operator as true and correct under penalty of perjury of the laws of the State of California, before beginning the operation of the business in the city:
(a) T
he name of the business and the address or addresses at which it will be operating in the city;
b
Packet Pg. 219
AA2

NOT YET APPROVED
10 (b) T
he date on which the business will begin operating;
(c) The
nature of the business’s activities;
(d) T
he square footage in which the business will be operating in the city; and (e) A
ny other information required by the Tax Administrator that is reasonably required to administer this Chapter 2.37.

2.37.110 Quarterly Tax Returns
Wi
th each quarterly tax payment, a business operator must submit a quarterly tax return which contains the following information, verified by the business operator as true and correct under penalty of perjury of the laws of the State of California:
(a) T
he name of the business and the address or addresses at which it is operating in the city;
(b) T
he nature of the business’s activities;
(c) The
square footage in which the business is operating in the city; (d) I
f the business operator claims an offset under section 2.37.080, sufficient information and documentation to establish the business’s right to the offset and the amount of the offset;
(e) A
ny other information required by the Tax Administrator; and (f) T
he amount of tax due based on the square footage of the business.

2.37.120 Agreements for Installment Payments
Th
e Tax Administrator may enter into an agreement with a business operator to allow a business operator to pay the tax on a more or less frequent basis.

2.37.130 Businesses Operating in the Same Location
(a) E
ach business operator operating a business in a location where one or more other businesses are also operating is obligated to pay business tax measured by the square footage occupied by that business.
(b) T
he payment of business tax by a business operator absolves any other business operator from having to pay business tax measured by the same square footage. b
Packet Pg. 220
AA2

NOT YET APPROVED
11 (c) Two or more business operators that are operating businesses in the same square footage may contractually agree which business will pay the business tax measured by that square footage.

2.37.140 Delinquent Taxes (Penalties and Interest)
(a) W
hen a tax becomes delinquent, a penalty of 10% of the amount of the delinquent tax will be added to the amount of tax due. If the tax remains unpaid sixty (60) days after becoming delinquent, an additional penalty of 25% of the amount of the delinquent tax (excluding accrued interest and the initial penalty) will be added to the amount of tax due.
(b) O
n the first of each month that a tax is delinquent, interest in the amount of 1.5% of the delinquent amount, excluding penalties and interest, will be added to the amount of tax due.
(c) A bu
siness operator may apply to the Tax Administrator for a reduction or waiver of any accrued penalties or interest, and the Tax Administrator may reduce or waive any accrued penalties or interest upon a finding of good cause.

2.37.150 Administrative Procedure to Assess or Correct Tax (a) I
f the Tax Administrator determines that a business operator has incorrectly reported any information to the city or has not paid all or any of the tax, penalties, or interest that are due, the Tax Administrator may, using any information available to the Tax Administrator, issue an Initial Determination stating what the Tax Administrator believes to be the correct information and, if new or additional tax, penalties, or interest are due, how much tax, penalties, or interest are due. An Initial Determination must be issued within five (5) years of the last day of the quarter to which the Initial Determination applies, except in the case of an audit conducted under section 2.37.200, in which case it must be issued within ninety (90) days of the completion of the audit and can apply to any of the quarters that were subject to the audit. The Initial Determination shall be served on the business operator either personally or by U.S. mail to the most recent address for the business operator in the Tax Administrator’s records. Service is effective upon deposit of the Initial Determination in the U.S. Mail. (b) A
business operator affected by an Initial Determination may within thirty (30) days of service of an Initial Determination contest the Initial Determination and request a hearing before the Tax Administrator by filing with the Tax Administrator a written request for a hearing. The further accrual of penalties and interest shall be tolled upon the filing of a request for a hearing. If a business operator does not contest an Initial Determination and request a hearing with the Tax Administrator within fifteen (15) days of service of the Initial Determination, the Initial Determination shall become final and cannot be appealed.
b
Packet Pg. 221
AA2

NOT YET APPROVED
12 (c) If a business operator timely contests an Initial Determination and requests a hearing, the Tax Administrator shall set a hearing within sixty (60) days of the filing of the request for a hearing. Notice of the hearing shall be served on the business operator either personally or by U.S. mail to the most recent address for the business operator in the Tax Administrator’s records.
(d) At
the hearing the business operator may present evidence and argument regarding the Initial Determination to show why the Initial Determination is incorrect and to show what the determination of the Tax Administrator should be. Within sixty (60) day after the close of the hearing, the Tax Administrator shall serve a Final Determination, setting forth the Tax Administrator’s determination of the facts and issues that were the subject of the Initial Determination. The Final Determination shall be served on the business operator either personally or by U.S. mail to the most recent address for the business operator in the Tax Administrator’s records. Service is effective upon deposit of the Final Determination in the U.S. Mail. Unless an appeal of a Final Determination is filed under section 2.37.170, any penalties or interest tolled under subdivision (b) of this section will resume accruing ten (10) days after the service of the Final Determination.

2.37.160 General Administrative Remedy
(a) An
y person affected by a decision of the Tax Administrator (“the challenger”), except for decisions under section 2.37.150, may challenge that decision by filing a written objection to the decision with the Tax Administrator. The objection must be filed within thirty (30) days of the issuance of the decision being challenged. If the Tax Administrator was required to provide notice of the decision, then the time to file an objection to the decision begins to run from the date of service of the notice of the decision. The Tax Administrator shall serve a written response to the objection within thirty (30) days of the filing of the objection, which period can be extended by the Tax Administrator for an additional thirty (30) days. The Tax Administrator’s response to the objection shall be served on the challenger either personally or by U.S. mail to the most recent address for the challenger in the Tax Administrator’s records.
(b) T
he challenger may request a hearing on the Tax Administrator’s response to the objection by filing a request for a hearing with the Tax Administrator within thirty (30) days of service of the response to the objection. If a timely request for a hearing on a response to the objection is filed with the Tax Administrator, the Tax Administrator shall set a hearing within sixty (60) days of the filing of the request for a hearing. Notice of the hearing shall be served on the challenger either personally or by U.S. mail to the most recent address for the challenger in the Tax Administrator’s records. (c) At
the hearing the challenger may present evidence and argument regarding the decision being challenged to show why the decision is incorrect and to show what it should be. Within sixty (60) days after the close of the hearing, which the Tax Administrator may extend for an additional sixty (60) days, the Tax Administrator shall serve a Final Determination on the decision, setting forth the Tax Administrator’s b
Packet Pg. 222
AA2

NOT YET APPROVED
13 determination of the decision that was challenged. The Final Determination shall be served on the challenger either personally or by U.S. mail to the most recent address for the challenger in the Tax Administrator’s records. Service is effective upon deposit of the Final Determination in the U.S. mail.

2.37.170 Appeals
(a) A Final
Determination of the Tax Administrator under section 2.37.150, subdivision (d), or section 2.37.160, subdivision (c), can be appealed to the City Manager by filing a written notice of appeal with the City Manager within thirty (30) days of service of the notice of the Final Determination being appealed.
(b) O
nly a business operator who files a timely request for a hearing on an Initial Determination under section 2.37.150 and participates in the hearing or a challenger who files an objection to a decision and files a request for a hearing on the response to the objection under section 2.37.160 and participates in the hearing can file an appeal under this section.
(c) If
a timely appeal is filed with the City Manager, the City Manager, or the City Manager’s designee, shall set a hearing within sixty (60) days of the filing of the appeal, which may be extended by the City Manager for an additional thirty (30) days. Notice of the hearing shall be served on the appellant either personally or by U.S. mail to the most recent address for the challenger in the Tax Administrator’s records. The tolling of the accrual of penalties or interest under section 2.37.150, subdivision (b), shall continue upon the timely filing of an appeal under this section.
(d) A
t the hearing the appellant and the Tax Administrator may present evidence and argument regarding the decision being appealed to show why the decision is correct or incorrect and to show what it should be. Within sixty (60) days after the close of the hearing, which the City Manager or the City Manager’s designee may extend for an additional sixty (60) days, the City Manager or the City Manager’s designee shall serve a written decision, setting forth the resolution of the appeal. The decision shall be served on the appellant either personally or by U.S. mail to the most recent address for the appellant in the City Manager’s records. Service is effective upon deposit of the decision in the U.S. Mail. Any penalties and interest that were tolled under section 2.37.150, subdivision (b), shall resume accruing ten (10) days after the service of the decision. (e) A d
ecision of the City Manager, or the City Manager’s designee, served under subdivision (d) of this section is subject to judicial review under sections 1094.5 and 1094.6 of the Code of Civil Procedure with a writ petition filed in the appropriate court within ninety (90) days of the service of the written decision. Any tax, penalties, or interest determined by the decision to be owed to the city by the appellant must be paid to the city as a precondition to filing a writ petition challenging the decision, but a claim for a refund under section 2.37.190 does not have to be filed before filing a writ petition.
b
Packet Pg. 223
AA2

NOT YET APPROVED
14 2.37.180 Constitutional Apportionment
(a) N
o tax imposed by this chapter shall be applied to a business operator so as to constitute an undue burden on interstate commerce or intercity commerce or be violative of the equal protection or due process clauses of the United States or California constitutions.
(b) A
business operator who contends that the application of a tax imposed by this chapter on the business operator constitutes an undue burden on interstate commerce or intercity commerce or violates the equal protection or due process clauses of the United States or California constitutions may apply to the Tax Administrator for an apportionment of the tax imposed on the business operator that would remove the constitutional violation by filing a written request with the Tax Administrator that explains the factual and legal basis for the claimed constitutional violation and proposes a method of apportionment that would resolve the alleged constitutional violations. (c) The
Tax Administrator, in consultation with City Attorney, shall review the application and within sixty (60) days of the filing of the application, which deadline may be extended for an additional sixty (60) days, issue a decision on the application. The decision on the application shall be served on the business operator either personally or by U.S. mail to the most recent address for the challenger in the Tax Administrator’s records. The decision can be challenged under section 2.37.160.

2.37.190 Refunds
(a) A
business operator who believes that any tax, penalty, or interest has been illegally, erroneously, or mistakenly paid to, collected by, or otherwise received by the city may file a claim for a refund of the amount of tax, penalty, or interest claimed to have been improperly received by the city.
(b) Th
e claim must be filed with the Tax Administrator and signed under penalty of perjury by the business operator. The claim must state:
(1) Th
e legal and factual basis for the refund claim;
(2) T
he amount of tax, penalty, or interest allegedly improperly received by the city; (3) T
he date or dates that the improper payments were made to the city; and (4) T
he address of the claimant.
(c) The
claim must be filed with the Tax Administrator within two (2) years of the date of the allegedly improper payment to the city.
b
Packet Pg. 224
AA2

NOT YET APPROVED
15 (d) The Tax Administrator shall provide a written decision on the claim within thirty (30) days of the filing of the claim by serving the decision on the claimant either personally or by U.S. mail to the address provided in the claim. Service is effective upon deposit of the response in the U.S. Mail.
(e) A claiman
t may challenge the Tax Administrator’s decision on a refund claim under section 2.37.160.
(f) T
his section does not apply to:
(1) A c
laim for a refund arising out of a decision of the Tax Administrator, City Manager, or City Manager’s designee under sections 2.37.150, 2.37.160,

2.37.170, or 2.37.190; or
(2) A
claim that could have been asserted by the claimant, but was not, under sections 2.37.150, 2.37.160, 2.37.170, or 2.37.190.

2.37.200 Audits
(a) T
he Tax Administrator may conduct an audit of any business operator to ensure proper compliance with the requirements of this chapter.
(b) T
o initiate an audit the Tax Administrator shall provide written notice to the business operator that is the subject of the audit of the initiation of the audit by serving the notice personally or by U.S. mail to the most recent address for the business operator in the Tax Administrator’s records. The notice shall state the period of time subject to the audit.
(c) No
tice of the initiation of an audit for a quarter for which either a business tax filing for a new business or quarterly tax return was submitted under section 2.37.100 or section

2.37.110 must be served within three (3) years of the last day of the quarter to which the filing or return applied.
(d) N
otice of the initiation of an audit for a quarter for which neither a business tax filing for a new business nor a quarterly tax return was submitted under section 2.37.100 or section 2.37.110, but for which the business was registered as a business under section

4.60.030, must be served within five (5) years of the last day of the quarter for which the filing or return should have been filed.
(e) N
otice of the initiation of an audit for a quarter for which neither a business tax filing for a new business nor a quarterly tax return was submitted under section 2.37.100 or section 2.37.110, and for which the business was not registered as a business under section 4.60.030, must be served within seven (7) years of the last day of the quarter for which the filing or return should have been filed.
b
Packet Pg. 2255
AA2

NOT YET APPROVED
16 (f) Upon completion of an audit, the Tax Administrator may make an Initial Determination under subdivision (a) of section 2.37.150 of any taxes, penalties, and interest determined to be owed and not paid for the audit period. The Initial Determination must be issued within ninety (90) days of the completion of the audit. If a business operator subject to audit is unable or unwilling to provide sufficient records to enable the Tax Administrator to verify compliance with this chapter, the Tax Administrator is authorized to make a reasonable estimate of the amount of tax due and the reasonable estimate shall be entitled to a rebuttable presumption of correctness.

2.37.210 Maintenance and Review of Records
(a) B
usiness operators must maintain for six (6) years records of square footage and information necessary to calculate the tax. If the Tax Administrator serves notice of the initiation of an audit, the information pertinent for the quarters subject to the audit must be maintained until the conclusion of the audit.
(b) T
he Tax Administrator may with reasonable notice inspect the premises and records of the business operator.
(c) Th
e Tax Administrator may request the city council to issue an administrative subpoena for records of a business operator or other persons with relevant information.

2.37.220 Confidentiality of Records
All do
cuments submitted to the city by a business operator under this chapter and all documents of a business operator inspected by the Tax Administrator in the conduct of an audit are presumed to be confidential and will not be subject to public inspection to the fullest extent allowed by law and must be maintained so that the contents of the documents will not become known except to persons charged with the administration of this chapter. Confidential documents may be shared with consultants retained by the city to aid in the administration of this chapter, provided the consultants agree to maintain the confidentiality of the documents.

However, nothing in this section precludes the city from aggregating information and releasing it in a manner that does not identify any particular business or connect any information with a particular business.

2.37.230 Action to Collect Delinquent Taxes
(a) A
ny tax, penalty, and interest imposed on a business operator under this chapter is a debt owed by the business operator to the city, which may be recovered in an action filed by the city in a court of competent jurisdiction. (b) A
n action under this section shall be filed within three (3) years of an Initial Determination becoming final under subdivision (b) of section 2.37.150, the issuance of a Final Determination under subdivision (d) of section 2.37.150 that is not appealed, the b
Packet Pg. 226
AA2

NOT YET APPROVED
17 issuance of a Final Determination under subdivision (c) of section 2.37.160 that is not appealed, or the issuance of a decision under subdivision (d) of section 2.37.170. (c) Duri
ng the pendency of an action filed under this section, interest will continue to accrue under subdivision (b) of section 2.37.140 until the entry of judgment. (d) B
efore filing an action, the city may serve the business operator either personally or by U.S. mail at the most recent address for the business operator in the Tax Administrator’s records with notice of the pending action and give the business operator fifteen (15) days to pay all of the delinquent taxes, penalties, and fees. If all of the of the delinquent taxes, penalties, and fees are not paid within the fifteen-day period, then an additional penalty of 25% of the amount of the delinquent tax (including accrued penalties and interest) shall be added to the total delinquency and may be recovered in the action.

2.37.240 Errors Not Binding on the City
No
error by the Tax Administrator or any other officer, employee, or agent of the city in the application of this chapter shall prevent, prejudice, or estop the collection by or for the city of the full amount of tax owed by any person under this chapter.

2.37.250 Dates
If t
he last day for the performance of any act under this chapter is a Saturday, Sunday, or holiday recognized by the city, then the date for the performance of that act is extended to the next day that is not a Saturday, Sunday, or holiday recognized by the city.

2.37.260 Rules and Regulations
(a) T
he Tax Administrator may adopt rules and regulations that are not inconsistent with the provisions of this chapter as may be necessary to aid in the application and enforcement of this chapter.
(b) T
he Tax Administrator may adopt rules providing for the service or filing of any notices, filings, returns, or submittals required by this chapter. These rules may provide alternative means for serving or filing any notice, filing, return, or submittal, and may clarify the method of serving or filing any notice, filing, return, or submittal provided for in this chapter.

2.37.270 City Council Amendments
(a) T
he city council may amend this chapter in any way it deems necessary without the approval of the electorate, provided the amendment does not increase the amount of tax that any person would pay.
b
Packet Pg. 227
AA2

NOT YET APPROVED
18 (b) Any amendment to this chapter that would reduce the amount of tax any taxpayer would pay, either temporarily or permanently, must be approved by two-thirds (2/3) of the members of the city council.
(c) No
twithstanding subdivision (a) of this section, the city council may with the approval of two-thirds (2/3) of its members and without approval of the electorate reduce, revise, or eliminate any of the business tax offsets in section 2.37.080.

2.37.280 Severability
If
any word, phrase, sentence, part, section, subsection, or other portion of this chapter, or any application thereof to any person or circumstance is declared void, unconstitutional, or invalid for any reason, then such word, phrase, sentence, part, section, subsection, or other portion, or the prescribed application thereof, shall be severable, and the remaining provisions of this chapter, and all applications thereof, not having been declared void, unconstitutional or invalid, shall remain in full force and effect. The People of the City of Palo Alto hereby declare that they would have passed this ordinance, and each section, subsection, sentence, clause and phrase thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases had been declared invalid or unconstitutional.

2.37.290 Savings Clause
No
section, clause, part, or provision of this chapter shall be construed as requiring the payment of any tax that would be in violation of the Constitution or laws of the United States of America or of the Constitution or laws of the State of California.

2.37.300 Sunset
The
tax imposed by this Chapter shall cease to be imposed on January 1, 2058.

SECTION 2. Implementation Procedures

1. The new tax imposed by this ordinance will go into effect on January 1, 2023.

2. Not
withstanding sections 2.37.090, 2.37.100, and 2.37.110 of the codified part of this ordinance, the tax imposed by this ordinance will initially be due on the following schedule:
(a) T
he initial tax payment for the tax that has accrued since January 1, 2023 will be due on January 1, 2024, or on a subsequent date established by the Tax Administrator and will be delinquent 30 days later if not paid.
(b) W
ith its initial tax payment, each business shall provide the following information:
(1) T
he name of the business and the address or addresses at which it will be operating in the city;
b
Packet Pg. 228
AA2

NOT YET APPROVED
19 (2) T
he nature of the business’s activities;
(3) T
he square footage in which the business will be operating in the city; (4) I
f the business operator claims an offset under section 2.37.080, sufficient information and documentation to establish the business’s right to the offset and the amount of the offset;
(5) A
ny other information required by the Tax Administrator; and (6) T
he amount of tax due based on the square footage of the business. (c) A bus
iness that begins operating for the first time after January 1, 2023, must submit its initial tax payment and initial information by the date provided in this uncodified section or by the date provided in codified section 2.37.090, whichever is later.

SECTION 3. General Tax. Proceeds of the tax imposed by this Ordinance shall be deposited in the general fund of the City and shall be available for any legal purpose.

SECTION 4. Effective Date. This ordinance shall be effective only if approved by a majority of the voters and shall go into effect immediately after the vote is declared by the City Council.

SECTION 5. Execution. The Mayor is hereby authorized to attest to the adoption of this Ordinance by the voters of the City by signing where indicated below.

I he
reby certify that the foregoing Ordinance was PASSED, APPROVED and ADOPTED by the People of the City of Palo Alto voting on the 8th day of November, 2022.

ATTE
ST:
_____________
_____________ ___________________________
City Clerk Mayor
APP
ROVED AS TO FORM: APPROVED:
_____________
______________ ___________________________
City Attorney City Manager
_____________
______________
Director of Administrative Services
b
Packet Pg. 229
AA2

NOT YET APPROVED
Resolution No. ____
Resolution of the Council of the City of Palo Alto
Adopting Advisory Spending Guidelines for Proceeds of a Business Tax to be Submitted to the Voters for Approval in November 2022

R E C I T A L S
A. The City of Palo Alto is a well-run municipality, with a Triple-A bond rating and a reputation for pro-active fiscal management, strong ongoing investments in public infrastructure, and conservative financial planning. However, the impacts of COVID-19, the subsequent economic downturn, and legal challenges to longstanding historic revenue sources have contributed to a projected budget gap in the City of Palo Alto’s general fund.

B. Unlike most communities in California, the City of Palo Alto does not require local businesses to contribute to city projects and services through a local business tax. As Palo Alto looks to the future, City leaders have determined that the time has come to seek voter approval to tax mid-sized and large businesses operating in the City as neighboring communities do. Diversifying revenues with contributions from business will ensure that businesses pay a fair share and contribute to services used by residents, visitors and workers in the community.

C. If a business tax is approved by voters, its proceeds will be placed in the City’s general fund for use on general government services. Council Members elected by the voters will determine the uses of those proceeds that best serve the public interest.

D. With this Resolution, the City Council informs voters of its intentions regarding the public services and programs that would be supported by business tax revenues.

Accordingly the Council of the City of Palo Alto RESOLVES as follows:

SECTION 1. This Resolution No. _____ updates and supersedes Resolution No. 10058, which is hereby repealed and shall be of no force or effect.

SECTION 2. Council hereby adopts the above Recitals as findings of the Council.

SECTION 3. It is the Council’s intention to use proceeds of a business tax—a general tax for general government uses—to fund services and programs that support safety and quality of life.

The Council approves the following advisory spending guidelines:

One-Third for Transportation and Safe Train Crossings. In the coming years, Palo Alto will need to need to invest substantial local funds in the improvement and safety of train crossings. CalTrain is electrifying and trains are increasing in number. To maintain traffic flow, bicycle and pedestrian mobility, and safety, the City’s four at-grade road crossings must be modified and separated from the train right-of-way. It is estimated that an average investment of $250 million will be needed for the improvements needed at each crossing. City funds will be used as matching funds to secure additional county, state, and federal funds for these investments in transportation infrastructure.

ATTACHMENT C c
Packet Pg. 230
AA2

NOT YET APPROVED
The Council plans to spend one-third of business tax proceeds on safe and efficient crossings for vehicles, bicyclists, and pedestrians.

One-Third for Housing Affordability and Services for the Unhoused. A balanced and healthy community welcomes families and individuals from all walks of life. In Palo Alto, significant investments are needed to bring housing costs into reach for many moderate earners who work in the City, such as teachers, public safety employees, and workers in the trades and service industries. With few affordable local housing options, these workers must travel long distances between home and work, contributing to green-house gas emissions and traffic congestion. In addition, longtime residents—especially those who rent—are at risk of losing housing and being forced to relocate to other communities or become unhoused. Those who are already living in the City without housing need financial support to transition to stable, safe and clean housing.

Substantial funding is needed to advance these goals. The Council plans to spend one-third of business tax proceeds on affordable housing and unhoused services.

One-Third for Public Safety. Rising costs and constrained revenues have limited the City’s ability to provide public safety services—including police, fire, 911, and emergency services—at the level desired by the community. Stable long-term revenues from a business tax will put these highly- valued City services on sound footing into the future. The Council plans to spend one-third of business tax proceeds on public safety.

SECTION 4. The Council finds that adoption of this Resolution is not a project under the California Environmental Quality Act and, therefore, no environmental impact assessment is necessary.

INTRODUCED AND PASSED:

AYES:

NOES:

ABSTENTIONS:

ABSENT:

ATTEST: APPROVED:
_________
_________________ ____________________________
City Clerk Mayor
AP
PROVED AS TO FORM:
_________
_________________ ____________________________
City Attorney City Manager
c
Packet Pg. 231
AA2
Not Yet Approved
Resolution No. ______
Resolution of the Council of the City of Palo Alto Calling an Election for November 8, 2022 for Submittal to the Qualified Electors of the City a Measure Affirming the City’s Natural Gas Utility General Fund Transfer

R E C I T
A L S
A. Purs
uant to the City of Palo Alto Charter, Article VII, Section 2 (Public Utilities Revenue) the City of Palo Alto has had a decades -long practice of annually transferring funds from the natural gas utility to the general fund to fund general city services.

B. In 202
1, in the case of Green v. City of Palo Alto, Santa Clara County Superior Court No. 16CV300760, the Superior Court determined that voter approval is required with respect to the portion of transferred funds that are generated from retail natural gas rates.

C. The natur
al gas utility transfer is an important part of funding for basic City services such as roads, parks, libraries, climate change reduction, and police, fire, emergency medical, and 9-1- 1 response . Affirming the continuation of the City’s long -standing transfer practice does not raise gas rates.

D. A prop
osed ordinance attached hereto and incorporated herein by reference as Attachment “A ” (the “Ordinance”) would amend the Palo Alto Municipal Code to affirm Palo Alto’s existing and decades-old practice of annually transferring up to 18% of the gross revenues of the gas utility (generated by retail natural gas rates) to the general fund to support general city services.

E. B y its Resolution No. 10045 the City Council called a general municipal election for November 8, 2022 (“Election”).

F. Pursuant to Government Code Section 53724 and Election s Code Section 9222, the City Council desires to submit the Ordinance to the voters of the City.

The City Council of the City of Palo Alto RESOLVES as follows:

SEC
TION 1. Findings. The City Council finds and determines that each of the findings set forth above are true and correct.

SEC
TION 2. General Tax Election. The City Council proposes to impose the general tax set forth in the Ordinance and to present this proposal to the vo ters on November 8, 2022.

SEC
TION 3. Measure. Pursuant to Elections Code Section 9222, the City Council hereby submits the Ordinance to the voters at the Election and orders the following question to be submitted to the voters at the Election:

ATTACHMENT D d
Packet Pg. 232
AA2

NOT YET APPROVED
2 Shall the measure affirming the City of Palo Alto’s existing and decades-old practice of annually transferring no more than 18% of the gross revenues from the City’s natural gas utility (generated by the City’s retail natural gas rates) to its general fund to support general city services such as roads; parks; libraries; climate change reduction; police, fire, emergency medical, and 9-1-1 response; providing
approximately $7 million annually in existing revenues until ended by voters, be adopted?
YES
NO
Th
is question requires the approval of a majority of those casting votes.

SE
CTION 4 . Adoption of Measure. The measure to be submitted to the voters is attached to this Resolution as Exhibit A and incorporated herein by this reference.

SE
CTION 5. Notice of Election. Notice of the time and place of holding the E lection is hereby given, and the City Clerk is authorized, instructed and directed to give further or additional notice of the Election, in time, form and manner as required by law.

SE
CTION 6 . Impartial Analysis. Pursuant to Elections Code Section 9280, the City Council hereby directs the City Clerk to transmit a copy of the measure to the City Attorney. The City Attorney shall prepare an impartial analysis of the measure, not to exceed 500 words in length, showing the effect of the measure on the existing law and the operation of the measure, and transmit such impartial analysis to the City Clerk on or before August 23, 2022.

SECTION 7 . B allot Arguments . Pursuant to Elections Code Section 9286 et. seq., August 16, 2022 at 5:00 p.m. shall be the deadline for submission of arguments in favor of, and arguments against, any local measures on the ballot. If more than one argument for and/or against is received, the priorities established by Elections Code Section 9287 shall control.

SE
CTION 8. Rebuttal Arguments. The provisions of Elections Code Section 9285 shall control the submission of any rebuttal arguments. The deadline for filing rebuttal arguments shall be August 23, 2022 at 5:00 p.m.

SECTION 9. C onsolidation Request. The Council of the City of Palo Alto requests the governing body of any other political subdivision, or any officers otherwise authorized by law, to partially or completely consolidate such elections and the City Council consents to such consolidation. The Council requests the Board of Supervisors of Santa Clara County to include on the ballots and sample ballots, all qualified measures submitted by the City Council to be ratified by the qualified electors of the City of Palo Alto. The Council acknowledges that the Election will be held and conducted according to procedures in the Elections Code, including Section 10418.

SECTION 10 . R equest for County Services. Pursuant to Section 10002 of the Elections Code, the Council of the City of Palo Alto hereby requests the Board of Supervisors of Santa Clara d
Packet Pg. 233
AA2

NOT YET APPROVED
3 County to permit the Registrar of Voters to render services to the City of Palo Alto relating to the conduct of Palo Alto’s General Municipal and Special Elections which are called to be held on Tuesday, Nove mber 8, 20 22. The services shall be of the type normally performed by the Registrar of Voters in assisting the clerks of municipalities in the conduct of elections including, but not limited to, checking registrations, mailing ballots, hiring election officers and arranging for polling places, receiving absentee voter ballot applications, mailing and receiving absent voter ballots and opening and counting same, providing and distributing election supplies, and furnishing voting machines.

SE
CTION 11 . Transmittal of Resolution. The City Clerk is hereby directed to submit forthwith a certified copy of this resolution to the Santa Clara County Board of Supervisors and to the Registrar of Voters.

IN
TRODUCED AND PASSED:

AYE
S:

NOE
S:

ABSE
NT:

ABSE
NTIONS:

ATTES
T: APPROVED:
_____________
________________ ______________________________
City Clerk Mayor
_____________
_________________
APPROVED AS TO FORM: City Manager
_____________
________________ ______________________________
City Attorney Director of Administrative Services
d
Packet Pg. 234
AA2

NOT YET APPROVED
4 Exhibit A
Or
dinance No. _____
Ordinance of the Council of the City of Palo Alto Amending Chapter 2.28 (Fiscal Procedures) of Title 2 of the Palo Alto Municipal Code to Authorize the City Council to Continue to Annually Transfer from the Natural Gas Utility to the General Fund an Amount Equal to 18% of the Gross Revenues of the Natural Gas Utility, Generated by the City’s Retail Natural Gas Rates Th
e People of the City of Palo Alto do ordain as follows:

SECTION 1. Chapter 2.28 of the Palo Alto Municipal Code is hereby amended by adding Section 2.28.185 as follows:

Chapter 2.28

FISCAL PROCEDURES

2.28.185 Natural Gas Utility Transfer
Each fiscal year the City Council may transfer from the natural gas utility to the general fund an amount equal to 18% of the gross revenues of the gas utility received during the fiscal year two fiscal years before the fiscal year of the transfer. At its discretion, the City Council may decide to transfer a lesser amount. The projected cost of the transfer shall be included in the City’s retail natural gas rates as part of the cost of providing gas service.

SECTION 2 . General Tax. Proceeds of the tax imposed by this Ordinance shall be deposited in the general fund of the City and shall be available for any legal purpose.

SECTION 3. Amendment or Repeal. The City Council may repeal Section 2.28.185 of the Palo Alto M unicipal Code or amend that Section without a vote of the people except that any amendment to Section 2.28.185 that increases the amount or rate of tax due from any p erson beyond the amounts and rates authorized by this Ordinance may not take effect unless approved by a vote of the people.

SECTION 4. Severability. If any section, subsection, sentence, clause, phrase, or portion of this Ordinance is for any reason held to be invalid or unenforceable by a court of competent jurisdiction, the remaining portions of this Ordinance shall nonetheless remain in full force and effect. The people hereby declare that they would have adopted each section, subsection, sentence, clause, phrase, or portion of this Ordinance, irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases, or portions of this Ordinance be declared invalid or unenforceable.

SECTION 5. Effective Date. This ordinance shall be effective only if approved by a majority of the voters and shall go into effect immediately after the vote is declared by the City Council. d
Packet Pg. 235
AA2

NOT YET APPROVED
5 Attachment A
SECTION 6. Execution. The Mayor is hereby authorized to attest to the adoption of this Ordinance by the voters of the City by signing where indicated below.

I he
reby certify that the foregoing Ordinance was PASSED, APPROVED and ADOPTED by the People of the City of Palo Alto voting on the 8th day of November, 2022.

ATTE
ST:
_____________
_____________ ___________________________
City Clerk Mayor
APP
ROVED AS TO FORM: APPROVED:
_____________
______________ ___________________________
City Attorney City Manager
_____________
______________
Director of Administrative Services
d
Packet Pg. 236
AA2
City of Palo Alto (ID # 14641)
City Council Staff Report
Report Type: Action Items Meeting Date: 8/8/2022
City of Palo Alto Page 1
Summary Title: Supplemental Report - 22PLN-00016
Title: PUBLIC HEARING / QUASI -JUDICIAL. 1033 Amarillo Ave [22PLN -00016]:

Request for a Preliminary Parcel Map With Exceptions to Subdivide a 20,787 Square Foot R -1 Property Into Two (2) Lots, Where Lot 1 Wil l be 10,668.50 Square Feet and Lot 2 Will be 10,118.77 Square Feet. Exception is for Minimum lot Width and Maximum lot Size. Zoning District R -1 Single Family Residential.

From: City Manager
Lead Department: Planning and Development Services
Supplemental Report for August 1, 2022 Item 9
CONTINUED DATE: AUGUST 8, 2022
TO: HONORABLE CITY COUNCIL
FROM: JONATHAN LAIT, DIRECTOR OF PLANNING & DEVELOPMENT SERVICES SUBJECT: PUBLIC HEARING / QUASI-JUDICIAL. 1033 AMARILLO AVE [22PLN- 00016]: REQUEST FOR A PRELIMINARY PARCEL MAP WITH EXCEPTIONS TO SUBDIVIDE A 20,787 SQUARE FOOT R-1 PROPERTY INTO TWO (2) LOTS, WHERE LOT 1 WILL BE 10,668.50 SQUARE FEET AND LOT 2 WILL BE 10,118.77 SQUARE FEET; THE EXCEPTION IS FOR MINIMUM LOT WIDTH AND MAXIMUM LOT SIZE. ZONING DISTRICT R-1 SINGLE FAMILY RESIDENTIAL.

This Memorandum provides brief responses to Council questions of staff during the August 1 st public hearing. Council conducted the hearing but continued the hearing for deliberation.

Packet Pg. 237
AA3
City of Palo Alto Page 2
Councilmember Stone asked about references in the City’s Comprehensive Plan (Comp Plan) related to ‘naturally affordable’ or ‘affordable by design’ references in the Comp Plan.

Councilmember Stone further asked whether the map approval could be conditioned to require displacement assistance or additional affordability in the event of redevelopment, beyond the City’s existing BMR program.

This report contains relevant Comp Plan goals, policies, and programs and provides additional information related to displacement and affordability.

Relevant Comprehensive Plan/Housing Element Policies
Staff have looked through the Comp Plan to find any additional policies relevant to the Councilmember’s topic, those policies are summarized below:
• Land Use Element Policy L -2.7 states, “Support efforts to retain housing that is more affordable in existing neighborhoods, including a range of smaller housing types.” Related Program L2.7.1 states, “Review development standards to discourage the net loss of housing units.”
• Land Use Element Policy L -2.3 st ates, “As a key component of a diverse, inclusive community, allow and encourage a mix of housing types and sizes, integrated into neighborhoods and designed for greater affordability, particularly smaller housing types, such as studios, co -housing, cottag es, clustered housing, accessory dwelling units and senior housing.”
• Housing Element goal H1 for existing neighborhoods is to “Ensure the preservation of the unique character of residential neighborhoods” and the related policy is “Promote the rehabilitat ion of deteriorating or substandard residential properties using sustainable and energy conserving approaches.”
• Program H1.1.3, “Provide incentives to developers such as reduced fees and flexible development standards to encourage the preservation of exis ting rental cottages and duplexes currently located in the R -1 and R-2 residential areas”. The five -year objective is to provide 10 rental cottages and duplexes using the city housing fund. • Housing Element goal H3 is to “meet underserved housing needs an d provide community resources to support our neighborhoods. Related policies and programs are:
o Policy H3.1 is to “encourage, foster, and preserve diverse housing opportunities for very low-, low-, and moderate income households.”
Packet Pg. 238
AA3
City of Palo Alto Page 3
o Policy H1.2 is to “Support efforts to preserve multifamily housing units in existing neighborhoods.”
Staff Analysis
The Comp Plan encourages the retention of housing that is affordable and housing that supports a diverse community; it celebrates a mix of housing types, including cottage and cluster housing, and seeks to encourage its retention through reduced fees and other development incentives. These policies could be interpreted as lending support toward an interest to retain the subject cottage cluster because of its unique housing layout and, arguably, increased affordability given it represents smaller, older housing stock that would not command the same rents as new construction.

Comp Plan policies are intended to be general and provide policy guidance. It is not uncommon for a project to comply with most policies and not others. When staff reviews a project for conformance, it considers the totality of the Comp Plan policies and implementing regulations.

The zoning code is the principal tool used to implement Comp Plan la nd use policies. There are no current zoning regulations or financial or development incentives that implement Comp Plan policies related to cottage clusters in the R -1 zoning district. The 2018 Housing Work Plan included exploration of this topic but other policy work received priority focus. Staff is including work on cottage clusters in the updated Housing Element but anticipates it would still be several years before policies are implemented.

Last year, staff met with the applicant’s representative to discuss development incentives that could be used to encourage the retention of the cottage clusters on the subject property. Use of the planned home zoning application was a consideration but the applicant was not sufficiently motivated in this regard and a short time later the City Council clarified that planned home zoning applications were not intended for the R-1 zoning district.

The applicant presented a pre -screening application to the City Council on October 25, 2021 to subdivide the property int o four lots generally reflecting the layout of the existing cottage clusters but also sought to develop each lot with a two -story building and accessory dwelling.

This would have resulted in four net new units, eight total units. The Council expressed some concern with this approach and the applicant subsequently filed the subject application to divide the lot in half.

Any redevelopment of the site must restore at least four units to remain in compliance with State law (SB 330). Even if the parcel map app lication were denied the property owner could still demolish the existing homes and replace it in the same configuration (building footprint, floor area, etc). While smaller, older housing units may demand less rent, delaying redevelopment without financia l or development incentives to retain and improve the condition of this housing typology may have down sides as well.

Packet Pg. 239
AA3
City of Palo Alto Page 4
When considering the findings required to approve the subdivision map and exceptions request, staff concludes that the project remains i n substantial compliance with the Comp Plan including some of the policies referenced above. However, the map and exception findings are subjective and a majority of Councilmembers could deny the project based on substantial evidence.

Displacement and Affordability
The Housing Crisis Act (SB 330) created a number of protections for low and very -low income households displaced by the redevelopment of residential rental properties. If a rental unit was actually rented by a low or very -low income household within the past five years, state law requires that the unit be replaced and offered at a rent affordable to such household. If the rental units were rented to higher -income households, however, these restrictions do not apply. T he applicant would need to provide the 5 -year rental history upon application for replacement units to determine if this is applicable.

Staff would need to carefully review any proposed, project -specific conditions relating to displacement and affordability. Project -specific conditions are likely to be closely scrutinized by a court for an “essential nexus” and “rough proportionality” to the impacts created by the project. This is a very difficult standard to meet. Therefore, if the Council is interested in imposing such conditions, staff would request additional time to study a specific proposal.

Packet Pg. 240
AA3
City of Palo Alto (ID # 14659)
City Council Staff Report
Meeting Date: 8/8/2022 Report Type: OTHER INFORMATION
City of Palo Alto Page 1
Title: PUBLIC HEARING: Adoption of a Resolution Confirming the Weed Abatement Report and Ordering the Cost of Abatement to be a Special Assessment on the Respective Properties Described Therein From: City Manager
Lead Department: City Clerk
This item has been continued to a future meeting. The Public Hearing notices will be re-issued once a date has been established.

Packet Pg. 241
AA4