Agenda packet, regular meeting — Pleasant Hill City Council, June 5, 2023

CITY OF PLEASANT HILL

CITY COUNCIL MEETING AGENDA
JUNE 5, 2023
REGULAR MEETING – 7:00 PM
The meeting will be held both in person at
City Hall, 100 Gregory Lane, Pleasant Hill, CA 94523
and remotely via Zoom in accordance with the Ralph M. Brown Act Watch on YouTube at: www.pleasanthillca.org/councilmeeting To provide comments via teleconference, click on the meeting link and enter the meeting ID and Passcode:

Meeting link: www.zoom.us
Meeting ID: 856 7255 3807
Passcode: 443813
The meeting ID and Passcode will change each meeting. See more information on Public Participation Options below.

City Council Meeting Agenda Page 1 June 5, 2023
City Offices, 100 Gregory Lane, Pleasant Hill, CA 94523 Telephone (925) 671-5267

MAYOR TIMOTHY FLAHERTY COUNCILMEMBER SUE NOACK

VICE MAYOR MATTHEW RINN COUNCILMEMBER ZAC SHESS

COUNCILMEMBER ALLEN VINSON
Options for observing the meeting and participating in public comment are provided below.

Public Communication. The public is welcome to address the City Council on items on the Consent Calendar or other items not listed on the agenda but within the Council’s jurisdiction during the general Public Comment period.

There is an opportunity for the public to comment on other agenda items at the time they are discussed. Comments are generally limited to three minutes.

Public Participation Options
1) Watch the Meeting via Youtube Livestream at www.pleasanthillca.org/councilmeeting. 2) Submit Written Comments by 4 pm the Day of the Meeting to [email protected] (comments received by deadline will be provided to the City Council before the meeting). Please specify that the correspondence is for public comment at the Council meeting. 3) Make Public Comment During the Meeting
When the Mayor invites public comment (or public comments on specific agenda items), you may participate in one of the following three ways:
a. Via Zoom
Go to www.Zoom.us using your computer/smart device and enter the Meeting ID and Passcode provided near the top of this page. We ask that you state your name and city of residence for the record when you start your comments. Please use the "Raise hand" feature in Zoom. You will not be seen or heard until it is your turn to speak. You will be invited into the meeting and asked to speak when it is your turn.

City Council Meeting Agenda Page 2 June 5, 2023
b. Via Phone
Call (669) 900-6833 and enter the Zoom Meeting ID and Passcode. Press *9 to “raise your hand” to alert staff that you wish to speak.
c. In Person
Members of the public may attend the meeting in person and may speak on any matter within the City Council's jurisdiction. Please fill out a speaker's card, available at the entry to the Council Chambers, and turn it in to the City Clerk Recorder.

If, due to a disability, a reasonable accommodation is needed to participate in this meeting, please refer to the Providing Accessible Communication to the Public Under the Americans with Disabilities Act and AB 2449 document online at www.pleasanthillca.org/accessiblecommunications and contact the ADA Coordinator 48 hours in advance of the meeting at (925) 671-5267 or via California Relay at 711.

Materials related to an item on this agenda submitted to the Council after distribution of the agenda packet are available to the public in the City’s Public Records Portal at https://cityarchive.pleasanthillca.org/WebLink/ (click on City Council Agenda Packets) or by contacting the City Clerk at [email protected] or 925- 671-5267.

City Council Meeting Recordings and Broadcasts.

Recorded City Council meetings are broadcast on Comcast Channel 28, Wave Channel 1029, and AT&T UVerse Channel 99 on the Wednesday following the meeting. Video recordings are generally available within 48 hours of the meeting, and may be viewed on the City’s website at www.pleasanthillca.org/MeetingVideos and selecting “City Council” from the meeting groups.

Agendas are Available for Review on the City Hall official noticing bulletin board (100 Gregory Lane), at the Pleasant Hill Police Department (330 Civic Drive), the Pleasant Hill Senior Center (233 Gregory Lane), and on the City’s website at www.pleasanthillca.org/agendas. Agenda packets will be available to the public on the City’s website at the same time as they are made available to the City Council.

1. CALL TO ORDER

2. PLEDGE OF ALLEGIANCE

3. ROLL CALL

4. CLOSED SESSION REPORT

5. PRESENTATIONS

5.1 Resolution Recognizing Michael G. Harris for Years of Dedicated Public Service Presented by Senator Bill Dodd

5.2 Introduction of Commission on Aging Commissioner Bill Musick and Measure K Oversight Committee Member Cindy Tunales
City Council Meeting Agenda Page 3 June 5, 2023

5.3 Proclamation Declaring June 19, 2023 as Juneteenth National Freedom Day

5.4 Proclamation Designating June 2023 as Lesbian, Gay, Bisexual, Transgender, Queer or Questioning, Plus (LGBTQ+) Pride Month

6. CITY MANAGER COMMENTS:
(Brief updates on pending City business without discussion by the City Council.)

7. COUNCIL ANNOUNCEMENTS AND REPORTS

7.1 Reports from Councilmembers on Meetings or Conferences Attended at City Expense (A) Contra Costa Mayors Conference Hosted by the City of Oakley on June 1, 2023 (B) Other Meetings Attended at City Expense

7.2 Announcements from Councilmembers

8. PUBLIC COMMENT:

The public is welcome at this time to address the City Council on items on the Consent Calendar or other items not listed on the agenda but within the Council’s jurisdiction. There is an opportunity for the public to comment on other agenda items at the time they are discussed.

Comments are limited to three minutes per speaker. To provide public comments, please see the Public Participation Options above.

9. CONSENT CALENDAR: All matters listed under “Consent Calendar” are considered by the Council to be routine and will be enacted by one motion. There will be no separate Council discussion of these items unless requested by a Councilmember prior to the time Council votes on the motion to adopt.

9.1 Approve Minutes for the Regular City Council Meeting of May 15, 2023 and for the Special City Council Meetings of May 18, 2023 and May 22, 2023

9.2 Approve Checks Dated: May 12, 2023; May 19, 2023; May 26, 2023

9.3 Adopt Resolution No. ___-23 Approving the City of Pleasant Hill Investment Policy Effective July 1, 2023 and Delegating Investment Authority to the Elected City Treasurer

9.4 Adopt Resolution No. ___-23 to Identify the Contra Costa Boulevard (Harriet Drive to Viking Drive) Improvement Project for the Expenditure of Fiscal Year 2023/2024 Funds of Senate Bill 1: The Road Repair and Accountability Act of 2017

9.5 Adopt Resolution No. ___-23 Authorizing the City Manager to Execute a Second Amendment to a Design Professional Services Agreement with Alta Planning + Design, Inc., for the Bicycle and Pedestrian Master Plan Project No. 03-20

9.6 Adopt Resolution No. ___-23 Authorizing Participation in and Approving the Amended and Restated Joint Exercise of Powers Agreement of the Fire Risk Management Services Joint Powers Authority
City Council Meeting Agenda Page 4 June 5, 2023

10. ACTION CALENDAR

10.1 Public Hearing and Adopt Resolution No. ___-23 Approving the Engineer's Report, Confirming Diagram and Assessment, and Ordering Levy of Assessments for Fiscal Year 2023-2024 in Assessment District No. 20

10.2 Public Hearing and Adopt Resolution No. ___-23 Approving the Engineer's Report, Confirming Diagram and Assessments, and Ordering Levy of Assessments for FY2023-2024 in Assessment District No. 22

10.3 Adopt Resolution ___-23 Accepting the Diablo View Road and Pleasant Hill Road Storm Drain Improvements Project No. 22-05 as Complete and Authorizing the City Engineer to issue and record a Notice of Completion

10.4 Adopt Resolution No. __-23 Accepting Bid and Awarding a Construction Contract to Sandstone Environmental Engineering, Inc. for Phase I of the Downtown Street Tree Replacement Project No. 03-23 and the Grayson Creek Restoration and Mitigation Project Exempt pursuant to Section 15301 as a Class 1 categorical exemption

10.5 Public Hearing to Consider Draft Maps and Composition of Districts for By-District Elections The California Environmental Quality Act (“CEQA”) does not apply to activities that will not result in a direct or reasonably foreseeable indirect physical change in the environment or is otherwise not considered a project as defined by CEQA (Section 21605) and CEQA Guidelines §§ 15060(c)(3) and 15378. Conducting public hearings for public input regarding transitioning to by-district elections and discussing a schedule for future hearings meets the above criteria and is not subject to CEQA.

10.6 Proclamation Commending June Catalano for Exemplary Service to the City of Pleasant Hill from 2006 to 2023, and Designating June 16, 2023 as June Catalano Day

11. ADJOURNMENT
Next City Council Meeting: June 26, 2023

CITY COUNCIL STAFF REPORT
Meeting Date: June 05, 2023
TO: THE HONORABLE MAYOR AND CITY COUNCILMEMBERS
SUBJECT: APPROVE MINUTES FOR THE REGULAR CITY COUNCIL MEETING OF MAY 15, 2023 AND FOR THE SPECIAL CITY COUNCIL MEETINGS OF MAY 18, 2023 AND MAY 22, 2023

RECOMMENDED CITY COUNCIL ACTION
Approve the minutes.

ATTACHMENT(S):

May 15, 2023 – Tentative Minutes
May 18, 2023 – Tentative Minutes
May 22, 2023 – Tentative Minutes
Prepared by: Carol Wu, City Clerk Recorder

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MINUTES OF THE
REGULAR MEETING – CITY COUNCIL
May 15, 2023
City Council Meeting Minutes Page 1 May 15, 2023
Mayor Flaherty called a Regular Meeting of the City Council to order at 7:12 PM, in the Council Chambers, 100 Gregory Lane, Pleasant Hill, CA, complete proceedings of which were electronically recorded. The meeting was a hybrid of both in person and teleconferenced attendees. The meeting agenda was posted on the City Hall outdoor bulletin board at 100 Gregory Lane, Pleasant Hill, CA on May 11, 2023, by Deputy City Clerk Juanita Davalos.

1. CALL TO ORDER

2. PLEDGE OF ALLEGIANCE

3. ROLL CALL
Attendee Name Title Status
Timothy M. Flaherty Mayor Present
Matthew Rinn Vice Mayor Present
Sue Noack Councilmember Present (via Zoom)
Allen Vinson Councilmember Present
Zac Shess Councilmember Present

4. CLOSED SESSION REPORT
Mayor Flaherty stated that the City Council had adjourned from a closed session and there was nothing to report.

5. PRESENTATIONS

5.1 Awards of Appreciation to Mike MacDonald for Service on the Commission on Aging from 2022 – 2023 and to Kathy Arras for Service on the Commission on Aging from 2015 - 2023
Mayor Flaherty presented awards of appreciation to outgoing Commission on Aging Commissioners Mike MacDonald and Kathy Arras.

5.2 Introduction of Commission on Aging Commissioners Linda Fisher and Dana Simmons
Mayor Flaherty introduced Linda Fisher and Dana Simmons, the new Commission on Aging Commissioners.

5.3 Awards of Appreciation to Dave Kludt for Service on the Education Commission from 2018 - 2023 and to Jennifer Andersen for Service on the Education Commission from 2012 – 2023
Mayor Flaherty presented awards of appreciation to outgoing Education Commissioners Dave Kludt and Jennifer Andersen.

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Attachment: May 15, 2023 Tentative Minutes (Minutes)
City Council Meeting Minutes Page 2 May 15, 2023

5.4 Introduction of Diversity Commissioners Daniel Rodriguez, Lloyd Schine, and Zhanna Thompson
Mayor Flaherty introduced Daniel Rodriguez, Lloyd Schine, and Zhanna Thompson, the new Diversity Commissioners.

5.5 Proclamation Designating June 2, 2023 as Gun Violence Awareness Day Mayor Flaherty presented a proclamation to Cri Campbell Schine, Survivor Lead for Greater Mt.

Diablo Moms Demand Action, declaring June 2, 2023 as Gun Violence Awareness Day.

5.6 Proclamation Designating the Month of May as Asian American and Pacific Islander Heritage Month
Mayor Flaherty presented a proclamation to Carson Sprott, Chair of the Diversity Commission, declaring the month of May as Asian American and Pacific Islander Heritage Month.

6. CITY MANAGER COMMENTS
June Catalano, City Manager, reported that:
 The Golden State Warriors watch party was sponsored by Off the Grid, Stay Pleasant Hill, and the Pleasant Hill Chamber of Commerce;  The Art, Wine, and Music Festival will be held on May 20-21, 2023;  The Juneteenth celebration will be held on June 18, 2023; and  The City has currently received 19 applications for the Social Media Assistance Grants program.

7. COUNCIL ANNOUNCEMENTS AND REPORTS

7.1 Reports from Councilmembers on Meetings or Conferences Attended at City Expense
(A) Contra Costa Mayors Conference Hosted by the City of San Ramon on May 4, 2023
Mayor Flaherty and Councilmember Noack reported their attendance at the Contra Costa Mayors Conference. Councilmember Noack provided a brief report on the discussion topics. (B) Other Meetings Attended at City Expense
None

7.2 Announcements from Councilmembers

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Attachment: May 15, 2023 Tentative Minutes (Minutes)
City Council Meeting Minutes Page 3 May 15, 2023
Vice Mayor Rinn reported his attendance at the ribbon cutting for the new art building at Diablo Valley College; the Berkshire Hathaway Chili Cookoff; and the Pleasant Hill Baseball Association final banquet.

Councilmember Vinson reported his attendance at the Laugh, Love, Learn event held at the Pleasant Hill Senior Center.

Councilmember Shess reported his attendance at the Off the Grid Golden State Warriors watch party; and at an Economic Development Subcommittee meeting.

Mayor Flaherty reported his attendance at both Off the Grid Golden State Warriors watch parties; and a ribbon cutting at the Diablo Valley College Tesla Start program. Mayor Flaherty on the May 6, 2023 Special City Council meeting regarding district-based elections.

8. PUBLIC COMMENT
Mayor Flaherty opened public comment.

The following member of the public appeared in person to provide a comment:
 Robert Kattenburg
The following member of the public participated via teleconference to make a comment:
 Marian Shostrom
Mayor Flaherty closed public comment.

9. CONSENT CALENDAR
Motion (Rinn/Vinson) to Approve all consent items, carried as follows:

AYES: Noack, Rinn, Shess, Vinson, Flaherty

9.1 Approve Minutes for the Regular City Council Meetings of April 17, 2023 and May 1 2023, and the Special City Council Meeting of May 6, 2023

9.2 Approve Checks Dated: April 28, 2023 and May 5, 2023

9.3 Accept Update on Contra Costa Transportation Authority and TRANSPAC

9.4 Adopt Resolution No. 30-23 Approving Side Letter of Agreement With the Management Pay Plan Group to Add a New Classification to the Management Compensation Pay Plan and Align the Chief Technology Officer Salary with Administrative Service Managers

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Attachment: May 15, 2023 Tentative Minutes (Minutes)
City Council Meeting Minutes Page 4 May 15, 2023

9.5 Adopt Resolution No. 31-23 Approving Intention to Levy and Collect Assessments and to Provide for Public Hearing and Notice in Assessment District No. 20 for Fiscal Year 2023/2024

9.6 Adopt Resolution No. 32-23 Approving Intention to Levy and Collect Assessments and to Provide for Public Hearing and Notice in Assessment District No. 22 for Fiscal Year 2023/2024

9.7 Approve Appointment Recommendations to the Civic Action Commission and Contra Costa Transportation Authority Advisory Committee

9.8 Adopt Resolution No. 33-23 Authorizing the City Manager to Notify the Pleasant Hill Chamber of Commerce that They are Released from the Requirement to Conduct and Submit to the City a Financial Audit of the Pleasant Hill Tourism Improvement District for the Period July 1, 2021 to March 30, 2022

9.9 Adopt Resolution No. 34-23 Approving a Second Amendment to the Agreement with Stay Pleasant Hill to Serve as the Owners' Association for the Pleasant Hill Tourism Improvement District and Authorizing the City Manager to Execute the Amendment

10. ACTION CALENDAR

10.1 Adopt Resolution No. 35-23 Approving the Funding for the 2023 Intersection and Crosswalk Improvements Project and the Use of the American Rescue Plan Act Funds to Pay for the Crossing Guard Program for the 2023/2024 School Year
Ananthan Kanagasanduram, City Engineer, delivered a presentation regarding the results of a March 2023 City funded study analyzing the crossing guard program. Mr. Kanagasanduram explained the proposed infrastructure solutions which would remove the need for crossing guards.

Jaime Rodriguez, Consultant from Traffic Patterns, was present via teleconference to answer questions asked by Councilmembers.

The following members of the public appeared in person to provide a comment:
 Bobby Glover
 Lindsey Dohlman
 Zhanna Thompson
Vice Mayor Rinn requested an amendment to the resolution to eliminate the obligation for the City to fund the cost of the crossing guards.

Motion (Flaherty/Noack) to Approve item 10.1 as amended, carried as follows:

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Attachment: May 15, 2023 Tentative Minutes (Minutes)
City Council Meeting Minutes Page 5 May 15, 2023
AYES: Noack, Rinn, Shess, Vinson, Flaherty

11. ADJOURNMENT
Mayor Flaherty adjourned the meeting at 9:07 p.m. in memory of Dr. Carol Weyland Conner, Founder of the White Pony Express. The next Special City Council meeting will be held on Thursday, May 18, 2023, beginning at 5:00 p.m.

CAROL W. WU, CITY CLERK RECORDER

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Attachment: May 15, 2023 Tentative Minutes (Minutes)

MINUTES OF THE
SPECIAL MEETING – CITY COUNCIL
May 18, 2023
City Council Meeting Minutes Page 1 May 18, 2023
Mayor Flaherty called a Special Meeting of the City Council to order at 5:21 PM, in the Council Chambers, 100 Gregory Lane, Pleasant Hill, CA, complete proceedings of which were electronically recorded. The meeting was a hybrid of both in person and teleconferenced attendees. The meeting agenda was posted on the City Hall outdoor bulletin board at 100 Gregory Lane, Pleasant Hill, CA on May 12, 2023, by Deputy City Clerk Juanita Davalos.

1. CALL TO ORDER

2. PLEDGE OF ALLEGIANCE

There was no public comment.

Mayor Flaherty closed public comment.

4. ACTION CALENDAR

4.1 Public Hearing and Adopt Resolution No.36-23, a Resolution of Findings and Certifying an Environmental Impact Report (SCH #2022070095) and Adopting Environmental Findings, a Statement of Overriding Considerations and Mitigation Monitoring and Reporting Plan, Adopt Resolution No.38-23 Adopting the City of Pleasant Hill 2040 General Plan, and Adopt Resolution No. 37-23 Repealing the 2015- 2023 City of Pleasant Hill Housing Element and Adopting the 2023-2031 City of Pleasant Hill Housing Element.

Troy Fujimoto, City Planner, introduced the item and provided the background and overview of the Planning Commission’s recommendations on the Pleasant Hill 2040 General Plan, the 2023-2031 Housing Element, and the accompanying Environmental Impact Report.

Brent Gibbons, Mintier Harnish, delivered a presentation on the City of Pleasant Hill 2040 General Plan.

Ryan Lister, Mintier Harnish, delivered a presentation on the 2023-2031 Housing Element.

Leslie Trejo, Rincon Consultants, delivered a presentation on the Environmental Impact Report (EIR).

The following members of the public appeared in person to provide a comment:

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Attachment: May 18, 2023 Tentative Minutes (Minutes)
City Council Meeting Minutes Page 2 May 18, 2023
 Brian Schaefer
 Don Smallen
 Christine Howard
 Caroline Ryan
 Matt Kennedy
 Todd Lohman
 Mark Lubiszewski
 Richard Roberts
 Shelley Cullimore
 Colin McGuisery (submitted a speaker card with comments, but did not wish to speak)  Heather McCall
 Andy Azadnia
 David Scholz
 Ward Wogsland
 Valerie Sloven
 Robert Seidenspinner
 Paul Bittner
 Amy Garcia
 Roger Wyman
 Charles Ener
 Susan Barlettani
 Doug Prutton
 Nonie Plizga
 Maria Baughart
 Bijan Mizani
 Deborah Gross (submitted a speaker card, but was not present to speak)  John Hoopt (submitted a speaker card, but was not present to speak)  Ron Haynes
 Reginald Hunt
 Suzette Briggs
 Carmelia Duse
 Mojgan Rahimi
 John Darlina
 Ali Cazi
 Tony Baker
 Curt Hill
 Laura Keil
 Bill Fazakerly
 Maria Berta
The following members of the public participated via teleconference to make a comment:

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Attachment: May 18, 2023 Tentative Minutes (Minutes)
City Council Meeting Minutes Page 3 May 18, 2023
 Doug Sandy, President of the Garden View Homeowners Association  Andrei Obolenskiy
 Thais Yafet
 Doug (no last name given)
 Darren Hall
 Sebastian Cabrera
 Ting Zhu
 River Lazzeretti
 Craig Lazzeretti
 Tala (no last name given)
 Bill Schrambling
 Vera Obolenskaya
 Joel (no last name given)
Mayor Flaherty closed the public hearing.

Mayor Flaherty called for a recess at 7:02 p.m.

Mayor Flaherty reconvened the meeting at 7:17 p.m.

Mayor Flaherty called for a recess at 9:49 p.m.

Mayor Flaherty reconvened the meeting at 10:05 p.m.

Motion (Noack/Vinson) to Approve the adoption of Resolution No. 36-23, a resolution of findings and certifying an Environmental Impact Report (SCH #2022070095) and adopting Environmental Findings, a Statement of Overriding Considerations and Mitigation Monitoring and Reporting Plan.

AYES: Noack, Rinn, Shess, Vinson, Flaherty
Motion (Flaherty/Rinn) to Approve the adoption of Resolution No. 37-23 repealing the 2015- 2023 City of Pleasant Hill Housing Element and adopting the 2023-2031 City of Pleasant Hill Housing Element.

AYES: Noack, Rinn, Shess, Vinson, Flaherty
Motion (Rinn/Vinson) to Approve the adoption of Resolution No. 38-23 adopting the City of Pleasant Hill 2040 General Plan.

AYES: Noack, Rinn, Shess, Vinson, Flaherty

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Attachment: May 18, 2023 Tentative Minutes (Minutes)
City Council Meeting Minutes Page 4 May 18, 2023

5. ADJOURNMENT
Mayor Flaherty adjourned the meeting at 10:49 p.m. The next Special City Council meeting will be held on Monday, May 22, 2023, beginning at 7:00 p.m.

CAROL W. WU, CITY CLERK RECORDER

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Attachment: May 18, 2023 Tentative Minutes (Minutes)

MINUTES OF THE
SPECIAL MEETING – CITY COUNCIL
May 22, 2023
City Council Meeting Minutes Page 1 May 22, 2023
Mayor Flaherty called a Special Meeting of the City Council to order at 7:05 PM, in the Council Chambers, 100 Gregory Lane, Pleasant Hill, CA, complete proceedings of which were electronically recorded. The meeting was a hybrid of both in person and teleconferenced attendees. The meeting agenda was posted on the City Hall outdoor bulletin board at 100 Gregory Lane, Pleasant Hill, CA on May 19, 2023, by Deputy City Clerk Juanita Davalos.

1. CALL TO ORDER

2. PLEDGE OF ALLEGIANCE

4. CLOSED SESSION REPORT
Mayor Flaherty stated that the City Council had adjourned from a closed session and there was nothing to report.

Public Comment
Mayor Flaherty opened public comment.

The following members of the public appeared in person to provide a comment:
 Matt Kennedy
 Pete Bennett
 Marshall Lewis
 Maria Baughart
Mayor Flaherty closed public comment.

Council Announcements and Reports
Mayor Flaherty, Vice Mayor Rinn, and Councilmembers Shess and Vinson, reported their attendance at the Pleasant Hill Art, Wine & Music festival.

Mayor Flaherty announced that the Memorial Day Observance will be held on May 29, 2023 at the Contra Costa County Veterans Monument; and that the Hillcrest Pleasant Hill housing development held a grand opening on May 20, 2023.

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Attachment: May 22, 2023 Tentative Minutes (Minutes)
City Council Meeting Minutes Page 2 May 22, 2023

5. ACTION CALENDAR

5.1 Public Hearing to Consider Draft Maps and Composition of Districts for ByDistrict Elections Mayor Flaherty explained the purpose of the special meeting.

Janet Coleson, City Attorney, introduced the item, the last required public hearing, to receive input from the community concerning transitioning to by-district elections. Ms. Coleson gave an overview of the maps submitted and requested the Council review the maps and provide direction to staff on maps to be further considered or possible revisions to maps proposed. She noted that once a map is identified, an ordinance would be drafted and brought back for two readings at future City Council meetings before adopted.

The following members of the public provided a written comment:
 Marian Shostrom
 Susan Hedgpeth
 Heather Rosmarin
The following members of the public appeared in person to provide a comment:
 Valerie Sloven
 Theresa Nidetz
 Stephen Abrams
 Yehudit Lieberman
 Marshall Lewis
 Matt Kennedy
 Michelle Simone
The following members of the public participated via teleconference to make a comment:
 Susan Hedgpeth
 Dick Offerman
 Karen Yapp
 Marian Shostrom
Jim Priest, Best Best & Krieger, was present via teleconference to answer questions asked by Councilmembers.

Mayor Flaherty closed the public hearing.

Councilmembers created a subcommittee consisting of Councilmembers Noack and Shess to further analyze Map 5, and return with recommendations for changes if any to a future City Council meeting.

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Attachment: May 22, 2023 Tentative Minutes (Minutes)
City Council Meeting Minutes Page 3 May 22, 2023
Motion (Flaherty/Vinson) to Approve the creation of a subcommittee consisting of Councilmembers Noack and Shess.

AYES: Noack, Rinn, Shess, Vinson, Flaherty

4. ADJOURNMENT
Mayor Flaherty adjourned the meeting at 8:44 p.m. The next Regular City Council meeting will be held on Monday, June 5, 2023, beginning at 7:00 p.m.

CAROL W. WU, CITY CLERK RECORDER

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Attachment: May 22, 2023 Tentative Minutes (Minutes)

CITY COUNCIL STAFF REPORT
Meeting Date: June 05, 2023
TO: THE HONORABLE MAYOR AND CITY COUNCILMEMBERS
SUBJECT: APPROVE CHECKS DATED: MAY 12, 2023; MAY 19, 2023; MAY 26, 2023

RECOMMENDED CITY COUNCIL ACTION
Approve the check register.

ATTACHMENT(S):

Check Register
Prepared by: Pam Chamberlin, Accounting Technician I
Approved by: Erick Cheung, Finance Manager

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CITY COUNCIL STAFF REPORT
Meeting Date: June 05, 2023
TO: THE HONORABLE MAYOR AND CITY COUNCILMEMBERS
SUBJECT: ADOPT RESOLUTION NO. ___-23 APPROVING THE CITY OF PLEASANT HILL INVESTMENT POLICY EFFECTIVE JULY 1, 2023

AND DELEGATING INVESTMENT AUTHORITY TO THE ELECTED

CITY TREASURER

SYNOPSIS
California state law requires the City Treasurer to render a statement of Investment Policy annually to the City Council at a public meeting and the City Council to annually delegate investment authority to the City Treasurer. The Budget Committee reviewed the investment policy at its meeting of May 3, 2023 and recommended approval to City Council. The City Treasurer recommends the Council adopt the proposed resolution approving the City of Pleasant Hill Investment Policy attached to the resolution effective July 1, 2023 and delegating the investment authority to the elected City Treasurer.

DISCUSSION
Background
Government Code 53607 et seq. requires the City Treasurer to “render” annually to the legislative body of the local agency at a public meeting a statement of investment policy. The investment policy is intended as a guide with specific controls for safety, liquidity and, lastly, yields.

Analysis
In consultation with the City’s professional investment advisor, Kara Hooks - Chandler Asset Management, the City Treasurer and Finance Department reviewed the City’s investment policy to 1) confirm that it continues to comply with California Government Code and 2) continues to provide strong safeguards over the City’s investment program. While the City’s investment policy continues to be robust, it is recommended that the City add additional protections recognized as industry best practices. The following are the main proposed changes in the attached Investment Policy:

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 Delivery, Safekeeping of Securities, and Custody: It is recommended the City adjust the exceptions list to remove mutual funds are not included in the Authorized Investments section.
 Internal Controls: It is recommended the City include language discussing internal controls to further emphasis methods to maintain safety of the portfolio.  Prudence: It is recommended the City enhance the Prudent Investor Standard language to include the full quote from California Government Code.  Money Market Mutual Funds: It is recommended the City make a minor edit to the sentence describing the amount allowed to be invested in Money Market Mutual Funds.  Glossary: It is recommended the City include a Glossary section to enhance the clarity of the investment policy by defining terms that may be unknown to a reader.

PUBLIC CONTACT
Public contact was made through posting of the City Council agenda on the City’s official notice bulletin board, at the Pleasant Hill Senior Center, and at the Pleasant Hill Police Department.

The agenda and staff report are posted on the City’s web page.

RECOMMENDED ACTION
Adopt the proposed resolution approving the City of Pleasant Hill Investment Policy effective July 1, 2023, and delegating the investment authority to the elected City Treasurer.

ATTACHMENT(S):

Proposed Resolution
City of Pleasant Hill Investment Policy 2023 - Redlined City of Pleasant Hill Investment Policy 2023 - Clean
Prepared by: Andrew Kalinowski, City Treasurer

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RESOLUTION NO. -23

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PLEASANT HILL

APPROVING THE CITY OF PLEASANT HILL INVESTMENT POLICY EFFECTIVE JULY 1, 2023 AND DELEGATING INVESTMENT AUTHORITY TO THE CITY TREASURER WHEREAS, California state law requires the City Treasurer to render a statement of Investment Policy annually to the City Council at a public meeting; and WHEREAS, California state law requires the City Council to annually delegate investment authority to the City Treasurer.

NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Pleasant Hill, approves the City of Pleasant Hill Investment Policy (attached) effective July 1, 2023, and delegates investment authority to the elected City Treasurer of the City of Pleasant Hill for the fiscal year July 1, 2023 through June 30, 2024.

ADOPTED by the City Council of the City of Pleasant Hill at a regular meeting held on the 5th day of June, 2023, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
___________________________________
TIMOTHY M. FLAHERTY, Mayor
ATTEST:

JUANITA DAVALOS, Acting City Clerk

9.3.a
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Attachment: Proposed Resolution (Annual Investment Policy 2023) 1 CITY OF PLEASANT HILL

INVESTMENT POLICY
Effective July 1, 20222023

INTRODUCTION
The investment policy of the City of Pleasant Hill is based upon State of California Government Code, 53600 et seq.. The primary goals of this policy are:

1. To ensure compliance with all State and Local laws governing the investment of monies in the custody of the City Treasurer.

2. To protect the principal monies entrusted to the City Treasurer.

3. To meet the daily cash flow demands of the City.

4. To generate the maximum amount of investment income within the parameters of prudent risk management.

The monies entrusted to the City Treasurer constitute the "Investment Portfolio" referred to in this document.

DELEGATION OF AUTHORITY
In the City of Pleasant Hill, management responsibility for investments is herewith delegated to the Elected City Treasurer pursuant to Gov. Code, 53607. The Treasurer shall establish procedures for the operation of an investment program consistent with this investment policy and shall perform investment transactions. The Treasurer may retain the services of an investment advisor. These procedures will include reference to safekeeping, wire transfer agreements, banking service contracts and collateral/depository agreements. The Treasurer shall be responsible for all transactions undertaken.

The Treasurer shall appoint a Deputy City Treasurer who shall perform the Treasurer's duties in the absence of the Treasurer.

SCOPE
The Treasurer is responsible for investing the unexpended cash in the City Treasury.

This investment policy applies to the investment activities of the City of Pleasant Hill.

The invested assets of the City, with the following three exceptions, shall be administered in accordance with the provisions of this policy. The exceptions are the Public Employees Retirement System and Deferred Compensation Funds, which are administered separately by trustees, and Bond proceeds which are invested according to the specifications of the bond indenture according to Government Code 53601(1).

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Attachment: Pleasant Hill Investment Policy 2023 - Redline (Annual Investment Policy 2023) 2 OBJECTIVES
Objectives have been set in order to achieve the goals of this investment policy. The primary objectives, in priority order, of the City of Pleasant Hill's investment policy are:

A. Safety of Principal
Safety of principal is the foremost objective of the City of Pleasant Hill. With each investment transaction the Treasurer shall seek to ensure that capital losses are avoided, whether these losses are from securities default, broker-dealer default, or erosion of market value. The City shall seek to preserve principal by mitigating the two types of risk: credit risk and market risk.

Further guidelines for safety of principal shall include:

1. Limiting the Portfolio's exposure to each issue and each issuer of debt.

2. Determining minimum credit requirements for firms that hold City monies.

B. Liquidity
The City of Pleasant Hill's investment portfolio will remain sufficiently liquid to enable the City to meet all operating requirements, which might be reasonably anticipated.

C. Return on Investment
Return on investment shall be an average market rate of return governed by the objectives of safety and liquidity in accord with prudent investment principles.

MATURITIES
Maturities shall be selected to anticipate cash needs, thereby eliminating the possibility of the need for forced investment liquidation. Cash flow estimates shall be prepared in a prudent manner.

The City will not invest in securities maturing more than five (5) years from the date of trade settlement, unless the City Council has granted authority to make such an investment.

QUALIFIED DEALERS
To the extent practicable, the Treasurer shall endeavor to complete investment transactions using a competitive bid process whenever possible. The City’s Treasurer will determine which financial institutions are authorized to provide investment services to the City. It shall be the City’s policy to purchase securities only from authorized institutions and firms.

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Attachment: Pleasant Hill Investment Policy 2023 - Redline (Annual Investment Policy 2023) 3 The Treasurer shall maintain procedures for establishing a list of authorized broker/dealers and financial institutions which are approved for investment purposes that are selected through a process of due diligence as determined by the City. Due inquiry shall determine whether such authorized broker/dealers, and the individuals covering the City are reputable and trustworthy, knowledgeable and experienced in Public Agency investing and able to meet all of their financial obligations. These institutions may include "primary" dealers or regional dealers that qualify under Securities and Exchange Commission (SEC) Rule 15c3-1 (uniform net capital rule).

In accordance with Section 53601.5, institutions eligible to transact investment business with the City include:
 Institutions licensed by the state as a broker-dealer.  Institutions that are members of a federally regulated securities exchange.  Primary government dealers as designated by the Federal Reserve Bank and non-primary government dealers.
 Nationally or state-chartered banks.
 The Federal Reserve Bank.
 Direct issuers of securities eligible for purchase.

Selection of financial institutions and broker/dealers authorized to engage in transactions will be at the sole discretion of the City, except where the City utilizes an external investment adviser in which case the City may rely on the adviser for selection.

All financial institutions and securities dealers who desire to engage in investment transactions with the City of Pleasant Hill shall certify that the supervising officer has reviewed the City's investment policy and agrees to disclose potential conflicts or risks to public funds that might arise out of business transactions between the firm/depository and the City of Pleasant Hill. Employees of any financial institution offering securities or investments to the City of Pleasant Hill shall be trained in the precautions appropriate to public sector investments and shall be required to familiarize themselves with the City's Investment Policy.

The City shall at least annually send a copy of the current investment policy to all dealers approved to do business with the City. Confirmation of receipt of this policy shall be considered evidence that the dealer understands the City's investment policies, and intends to offer the City only appropriate investments.

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

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Attachment: Pleasant Hill Investment Policy 2023 - Redline (Annual Investment Policy 2023) 4 Selection of broker/dealers used by an external investment adviser retained by the City will be at the sole discretion of the adviser. Where possible, transactions with broker/dealers shall be selected on a competitive basis and their bid or offering prices shall be recorded. If there is no other readily available competitive offering, best efforts will be made to document quotations for comparable or alternative securities. When purchasing original issue instrumentality securities, no competitive offerings will be required as all dealers in the selling group offer those securities at the same original issue price.

DELIVERY, SAFEKEEPING OF SECURITIES, AND CUSTODY
To protect against potential losses by collapse of individual securities dealers, all securities owned by the City (including collateral on repurchase agreements), shall be held in the City's name in safekeeping by a third party custodian. Said trust department shall act as agent for the City of Pleasant Hill pursuant to a custody agreement between the bank and the City. All securities shall be received and delivered using standard delivery-versus-payment procedures. The Custodian shall provide safekeeping receipts of all securities held. A monthly report will be received by the City from the custodian listing all securities held in safekeeping with current market data and other information.

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

COLLATERALIZATION
Certificates of Deposit: The City shall require any commercial bank or savings and loan association to deposit eligible securities with an agency of a depository approved by the State Banking Department to secure any uninsured portion of a Non-Negotiable Certificate of Deposit. The value of eligible securities as defined pursuant to California Government Code, Section 53651, pledged against a Certificate of Deposit shall be equal to 150% of the face value of the CD if the securities are classified as mortgages and 110% of the face value of the CD for all other classes of security.

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

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Attachment: Pleasant Hill Investment Policy 2023 - Redline (Annual Investment Policy 2023) 5 Value of the securities that underlie a repurchase agreement shall be valued at 102% or greater of the funds borrowed against those securities.  Financial institutions shall mark the value of the collateral to market at least monthly and increase or decrease the collateral to satisfy the ratio requirement described above.
 The City shall receive monthly statements of collateral.

ETHICS AND CONFLICTS OF INTEREST
The Investment Officers, i.e., the City Treasurer and the Deputy City Treasurer, shall be governed by the "Code of Ethics" and the "Code of Professional Conduct" of the California Municipal Treasurers Association. The Investment Officers shall refrain from personal business activity that could conflict with proper execution of the investment program, or which would impair their ability to make impartial investment decisions.

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

PRUDENCE
GenerallyPursuant to California Government Code, Section 53600.3, all persons authorized to make investment decisions on behalf of the City are trustees and therefore fiduciaries subject to investments shall be made in the context of the "prudent investor standard" rule, which states:
“…all governing bodies of local agencies or persons authorized to make investment decisions on behalf of those local agencies investing public funds pursuant to this chapter are trustees and therefore fiduciaries subject to the prudent investor standard. When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the Agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the Agency. Within the limitations of this section and considering individual investments as part of an overall strategy, investments may be acquired as authorized by law.”"...investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in the

9.3.b
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Attachment: Pleasant Hill Investment Policy 2023 - Redline (Annual Investment Policy 2023) 6 management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived." Officers acting in accordance with written procedures and the investment policy and exercising due diligence shall be relieved of personal responsibility for an individual security's credit risk or market price changes, provided deviations from expectations are reported in a timely fashion and appropriate action is taken to control adverse developments.

AUTHORIZED INVESTMENTS
The City is governed by California Government Code, Sections 53600 et. seq. Within the context of these limitations, the City seeks to further restrict eligible investments to the guidelines listed below. In the event a discrepancy is found between this policy and the Code, the more restrictive parameters will take precedence. Percentage holding limits and minimum credit quality listed in this section apply at the time the security is purchased. Any investment currently held at the time the policy is adopted which does not meet the new policy guidelines can be held until maturity and shall be exempt from the current policy. At the time of the investment’s maturity or liquidation, such funds shall be reinvested only as provided in the current policy.

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

The following investments are authorized:

1. United States Treasury Bills, Bonds, Notes, and other government obligations for which the full faith and credit of the United States are pledged for the payment of principal and interest. There are no limits on the dollar amount or percentage that the City may invest in U.S. Treasuries, provided that the maximum maturity is five (5) years.

2. Obligations issued by Federal Agencies or United States Government-Sponsored Enterprise obligations, participations, or other instruments, including those issued by or fully guaranteed as to principal and interest by federal agencies or United States government-sponsored enterprises. There are no limits on the dollar amount or percentage that the Agency may invest in Federal Agency or Government-Sponsored Enterprises (GSEs), provided that:
a) No more than 30% of the portfolio may be invested in any single Agency/GSE issuer.
b) The maximum maturity does not exceed five (5) years. c) The maximum percent of agency callable securities in the portfolio will be 20%.

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Attachment: Pleasant Hill Investment Policy 2023 - Redline (Annual Investment Policy 2023) 7 3. Municipal securities, including obligations of the City, the State of California and any local agency within the State of California, provided that:
a) The securities are rated in a rating category of “A” or its equivalent or better by at least one nationally recognized statistical rating organization (“NRSRO”).
b) No more than 5% of the portfolio may be invested in any single issuer. c) No more than 30% of the portfolio may be in Municipal Securities. d) The maximum maturity does not exceed five (5) years.

4. Municipal securities (Registered Treasury Notes or Bonds) of any of the other 49 states in addition to California, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by a state or by a department, board, agency, or authority of any of the other 49 states, in addition to California:
a) The securities are rated in a rating category of “A” or its equivalent or better by at least one nationally recognized statistical rating organization (“NRSRO”).
b) No more than 5% of the portfolio may be invested in any single issuer. c) No more than 30% of the portfolio may be in Municipal Securities. d) The maximum maturity does not exceed five (5) years.

5. Banker’s Acceptances, provided that:
a) They are issued by institutions which have short-term debt obligations rated “A-1” or its equivalent or better by at least one NRSRO; or long-term debt obligations which are rated in a rating category of “A” or its equivalent or better by at least one NRSRO.
b) No more than 40% of the portfolio may be invested in Banker’s Acceptances.
c) No more than 5% of the portfolio may be invested in any single issuer. d) The maximum maturity does not exceed 180 days.

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Attachment: Pleasant Hill Investment Policy 2023 - Redline (Annual Investment Policy 2023) 8 b) Securities issued by other entities:
o The issuer is organized within the United States as a special purpose corporation, trust, or limited liability company. o The securities must have program-wide credit enhancements including, but not limited to, overcollateralization, letters of credit, or a surety bond.
o The securities are rated “A-1” or its equivalent or better by at least one NRSRO.
 No more than 10% of the outstanding commercial paper of any single issuer.
 No more than 25% of the City’s investment assets under management may be invested in Commercial Paper.
 No more than 5% of the portfolio may be invested in any single issuer.  The maximum maturity does not exceed 270 days.

7. Negotiable Certificates of Deposit (NCDs), issued by a nationally or statechartered bank, a savings association or a federal association, a state or federal credit union, or by a federally licensed or state-licensed branch of a foreign bank, provided that:
a) The amount of the NCD insured up to the FDIC limit does not require any credit ratings.
b) Any amount above the FDIC insured limit must be issued by institutions which have short-term debt obligations rated “A-1” or its equivalent or better by at least one NRSRO; or long-term obligations rated in a rating category of “A” or its equivalent or better by at least one NRSRO. c) No more than 30% of the total portfolio may be invested in NCDs. d) No more than 5% of the portfolio may be invested in any single issuer. e) The maximum maturity does not exceed five (5) years.

8. Federally Insured Time Deposits (Non-Negotiable Certificates of Deposit) in state or federally chartered banks, savings and loans, or credit unions, provided that:
a) The amount per institution is limited to the maximum covered under federal insurance.
b) No more than 20% of the portfolio will be invested in a combination of federally insured and collateralized time deposits.
c) The maximum maturity does not exceed five (5) years.

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Attachment: Pleasant Hill Investment Policy 2023 - Redline (Annual Investment Policy 2023) 9 d) No more than 20% of the portfolio will be invested in a combination of federally insured and collateralized time deposits.
e) The maximum maturity does not exceed five (5) years.

10. Collateralized Bank Deposits. City’s deposits with financial institutions will be collateralized with pledged securities per California Government Code, Section 53651. There are no limits on the dollar amount or percentage that the City may invest in collateralized bank deposits.

11. Repurchase Agreements collateralized with securities authorized under California Government Code, maintained at a level of at least 102% of the market value of the Repurchase Agreement. There are no limits on the dollar amount or percentage that the City may invest, provided that:
a) Securities used as collateral for Repurchase Agreements will be delivered to an acceptable third party custodian.
b) Repurchase Agreements are subject to a Master Repurchase Agreement between the City and the provider of the repurchase agreement. The Master Repurchase Agreement will be substantially in the form developed by the Securities Industry and Financial Markets Association (SIFMA). c) The maximum maturity does not exceed one (1) year.

12. Medium Term Corporate Notes issued by corporations organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States, provided that:
a) The securities are rated in a rating category of “A” or its equivalent or better by at least one NRSRO.
b) No more than 30% of the total portfolio may be invested in medium term notes.
c) No more than 5% of the portfolio may be invested in any single issuer. d) The maximum maturity does not exceed five (5) years.

13. Money Market Mutual Funds registered with the Securities and Exchange Commission under the Investment Company Act of 1940 and issued by diversified management companies and meet either of the following criteria:
a) Have attained the highest ranking or the highest letter and numerical rating provided by not less than two (2) NRSROs; or
b) Have retained an investment adviser registered or exempt from registration with the Securities and Exchange Commission with not less than five years’ experience managing money market mutual funds with assets under management in excess of $500 million.

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Attachment: Pleasant Hill Investment Policy 2023 - Redline (Annual Investment Policy 2023) 10  No more than 20% of the total portfolio may be invested in the shares of any one Money Market Mutual Funds.

14. Local Agency Investment Fund (LAIF) - pool established by the State Treasurer for the benefit of local agencies, up to the maximum amount permitted by LAIF.

15. Supranational obligations, provided that:
 Issues are US dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, International Finance Corporation, or Inter-American Development Bank.
 The securities are rated in a rating category of “AA” or its equivalent or better by a NRSRO.
 No more than 30% of the total portfolio may be invested in these securities.
 No more than 10% of the portfolio may be invested in any single issuer.  The maximum maturity does not exceed five (5) years.

16. Asset-Backed, Mortgage-Backed, Mortgage Pass-Through Securities, and Collateralized Mortgage Obligations from issuers not defined in sections 1 and 2 of the Authorized Investments section of this policy, provided that:
 The securities are rated in a rating category of “AA” or its equivalent or better by a NRSRO.
 No more than 20% of the total portfolio may be invested in these securities.
 No more than 5% of the portfolio may be invested in any single AssetBacked or Commercial Mortgage security issuer.  The maximum legal final maturity does not exceed five (5) years.

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Attachment: Pleasant Hill Investment Policy 2023 - Redline (Annual Investment Policy 2023) 11 2026, securities backed by the U.S. Government that could result in a zero- or negative-interest accrual if held to maturity are permitted.  Trading securities for the sole purpose of speculating on the future direction of interest rates is prohibited.
 Purchasing or selling securities on margin is prohibited.  The use of reverse repurchase agreements, securities lending or any other form of borrowing or leverage is prohibited.
 The purchase of foreign currency denominated securities is prohibited.  Agencies that are not Qualified Institutional Buyers (QIB) as defined by the Securities and Exchange Commission are prohibited from purchasing Private Placement Securities. The SEC defines a QIB as having at least $100,000,000 in securities owned and invested.

INVESTMENT POOLS/MUTUAL FUNDS
The City shall conduct a thorough investigation of any pool or mutual fund prior to making an investment, and on a continual basis thereafter. The City Treasurer shall develop a questionnaire which will answer the following general questions:
 A description of eligible investment securities, and a written statement of investment policy and objectives.
 A description of interest calculations and how it is distributed, and how gains and losses are treated.
 A description of how the securities are safeguarded (including the settlement processes), and how often the securities are priced and the program audited.
 A description of who may invest in the program, how often, what size deposit and withdrawal are allowed.
 A schedule for receiving statements and portfolio listings.  Are reserves, retained earnings, etc. utilized by the pool/fund?  A fee schedule, and when and how is it assessed.
 Is the pool/fund eligible for bond proceeds and/or will it accept such proceeds?

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Attachment: Pleasant Hill Investment Policy 2023 - Redline (Annual Investment Policy 2023) 12  The diversification requirements included in the “Authorized Investments” section of this policy are designed to mitigate credit risk in the portfolio.  No more than 5% of the total portfolio may be deposited with or invested in securities issued by any single issuer unless otherwise specified in this policy.
 The City may elect to sell a security prior to its maturity and record a capital gain or loss in order to manage the quality, liquidity or yield of the portfolio in response to market conditions or City’s risk preferences.  If a security owned by the City is downgraded to a level below the requirements of this policy, making the security ineligible for additional purchases, the following steps will be taken:
 Any actions taken related to the downgrade by the investment manager will be communicated to the City Treasurer in a timely manner.
 If a decision is made to retain the security, the credit situation will be monitored and reported to the City Council.

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

The City further recognizes that certain types of securities, including variable rate securities, securities with principal paydowns prior to maturity, and securities with embedded options, will affect the market risk profile of the portfolio differently in different interest rate environments. The City, therefore, adopts the following strategies to control and mitigate its exposure to market risk:
 The City will maintain a minimum of six months of budgeted operating expenditures in short term investments to provide sufficient liquidity for expected disbursements.
 The maximum stated final maturity of individual securities in the portfolio will be five (5) years, except as otherwise stated in this policy.  The duration of the portfolio will generally be approximately equal to the duration (typically, plus or minus 20%) of a Market Benchmark, an index selected by the City based on the City’s investment objectives, constraints and risk tolerances.

REPORTING

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Attachment: Pleasant Hill Investment Policy 2023 - Redline (Annual Investment Policy 2023) 13 According to state law, the City Treasurer shall render an investment report no less than quarterly to the chief executive officer and the legislative body of the City.

POLICY REVIEW
This investment policy shall be reviewed by the City Council at least annually to ensure its consistency with the overall objectives of preservation of principal, liquidity, rate of return, and its relevance to current law and financial and economic trends. Amendments and modifications to the policy shall be accepted by the City Council prior to implementation.

Respectfully submitted,
Andrew Kalinowski
City Treasurer
July 1, 20222023

9.3.b
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Attachment: Pleasant Hill Investment Policy 2023 - Redline (Annual Investment Policy 2023) 14 Glossary of Investment Terms
Agencies. Shorthand market terminology for any obligation issued by a governmentsponsored entity (GSE), or a federally related institution. Most obligations of GSEs are not guaranteed by the full faith and credit of the US government. Examples are:

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

FHLB. The Federal Home Loan Bank provides credit and liquidity in the housing market. FHLB issues discount notes and bonds.

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

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

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

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

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

Asset Backed Securities. Securities supported by pools of installment loans or leases or by pools of revolving lines of credit.

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

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

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

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

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

Certificate of Deposit (CD). A time deposit with a specific maturity evidenced by a certificate.

Certificate of Deposit Account Registry SYSTEM (CDARS). A private placement

9.3.b
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Attachment: Pleasant Hill Investment Policy 2023 - Redline (Annual Investment Policy 2023) 15 service that allows local agencies to purchase more than $250,000 in CDs from a single financial institution (must be a participating institution of CDARS) while still maintaining FDIC insurance coverage. CDARS is currently the only entity providing this service. CDARS facilitates the trading of deposits between the California institution and other participating institutions in amounts that are less than $250,000 each, so that FDIC coverage is maintained.

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

Collateralized Bank Deposit. A bank deposit that is collateralized at least 100% (principal plus interest to maturity). The deposit is collateralized using assets set aside by the issuer such as Treasury securities or other qualified collateral to secure the deposit in excess of the limit covered by the Federal Deposit Insurance Corporation.

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

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

Commercial Paper. The short-term unsecured debt of corporations.

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

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

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

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

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

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

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

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

Duration. The weighted average time to maturity of a bond where the weights are the

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Attachment: Pleasant Hill Investment Policy 2023 - Redline (Annual Investment Policy 2023) 16 present values of the future cash flows. Duration measures the price sensitivity of a security to changes interest rates.

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

Federally Insured Time Deposit. A time deposit is an interest-bearing bank deposit account that has a specified date of maturity, such as a certificate of deposit (CD).

These deposits are limited to funds insured in accordance with FDIC insurance deposit limits.

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

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

Local Agency Investment Fund (LAIF). A voluntary investment fund open to government entities and certain non-profit organizations in California that is managed by the State Treasurer’s Office.

Local Government Investment Pool. Investment pools that range from the State Treasurer’s Office Local Agency Investment Fund (LAIF) to county pools, to Joint Powers Authorities (JPAs). These funds are not subject to the same SEC rules applicable to money market mutual funds.

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

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

Market Value. The price at which a security can be traded.

Maturity. The final date upon which the principal of a security becomes due and payable.

Medium Term Notes. Unsecured, investment-grade senior debt securities of major corporations which are sold in relatively small amounts on either a continuous or an intermittent basis. MTNs are highly flexible debt instruments that can be structured to respond to market opportunities or to investor preferences.

Modified Duration. The percent change in price for a 100-basis point change in yields.

Modified duration is the best single measure of a portfolio’s or security’s exposure to market risk.

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

Money Market Mutual Fund. A mutual fund that invests exclusively in short-term securities. Examples of investments in money market funds are certificates of deposit and U.S. Treasury securities. Money market funds attempt to keep their net asset values at $1 per share.

Mortgage Pass-Through Securities. A securitized participation in the interest and

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Attachment: Pleasant Hill Investment Policy 2023 - Redline (Annual Investment Policy 2023) 17 principal cash flows from a specified pool of mortgages. Principal and interest payments made on the mortgages are passed through to the holder of the security.

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

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

Nationally Recognized Statistical Rating Organization (NRSRO).

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

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

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

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

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

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

Securities and Exchange Commission SEC) Rule 15c3-1. An SEC rule setting capital requirements for brokers and dealers. Under Rule 15c3-1, a broker or dealer must have sufficient liquidity in order to cover the most pressing obligations. This is defined as having a certain amount of liquidity as a percentage of the broker/dealer's total obligations. If the percentage falls below a certain point, the broker or dealer

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Attachment: Pleasant Hill Investment Policy 2023 - Redline (Annual Investment Policy 2023) 18 may not be allowed to take on new clients and may have restrictions placed on dealings with current client.

Structured Note. A complex, fixed income instrument, which pays interest, based on a formula tied to other interest rates, commodities or indices. Examples include inverse floating rate notes which have coupons that increase when other interest rates are falling, and which fall when other interest rates are rising, and "dual index floaters," which pay interest based on the relationship between two other interest rates - for example, the yield on the ten-year Treasury note minus the Libor rate.

Issuers of such notes lock in a reduced cost of borrowing by purchasing interest rate swap agreements.

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

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

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

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

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

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

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

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Attachment: Pleasant Hill Investment Policy 2023 - Redline (Annual Investment Policy 2023) 1 CITY OF PLEASANT HILL

INVESTMENT POLICY
Effective July 1, 2023

INTRODUCTION
The investment policy of the City of Pleasant Hill is based upon State of California Government Code, 53600 et seq. The primary goals of this policy are:

1. To ensure compliance with all State and Local laws governing the investment of monies in the custody of the City Treasurer.

2. To protect the principal monies entrusted to the City Treasurer.

3. To meet the daily cash flow demands of the City.

4. To generate the maximum amount of investment income within the parameters of prudent risk management.

The monies entrusted to the City Treasurer constitute the "Investment Portfolio" referred to in this document.

The Treasurer shall appoint a Deputy City Treasurer who shall perform the Treasurer's duties in the absence of the Treasurer.

SCOPE
The Treasurer is responsible for investing the unexpended cash in the City Treasury.

This investment policy applies to the investment activities of the City of Pleasant Hill.

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Attachment: Pleasant Hill Investment Policy 2023 - Clean (Annual Investment Policy 2023) 2 OBJECTIVES
Objectives have been set in order to achieve the goals of this investment policy. The primary objectives, in priority order, of the City of Pleasant Hill's investment policy are:

Further guidelines for safety of principal shall include:

1. Limiting the Portfolio's exposure to each issue and each issuer of debt.

2. Determining minimum credit requirements for firms that hold City monies.

B. Liquidity
The City of Pleasant Hill's investment portfolio will remain sufficiently liquid to enable the City to meet all operating requirements, which might be reasonably anticipated.

C. Return on Investment
Return on investment shall be an average market rate of return governed by the objectives of safety and liquidity in accord with prudent investment principles.

The City will not invest in securities maturing more than five (5) years from the date of trade settlement, unless the City Council has granted authority to make such an investment.

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Attachment: Pleasant Hill Investment Policy 2023 - Clean (Annual Investment Policy 2023) 3 The Treasurer shall maintain procedures for establishing a list of authorized broker/dealers and financial institutions which are approved for investment purposes that are selected through a process of due diligence as determined by the City. Due inquiry shall determine whether such authorized broker/dealers, and the individuals covering the City are reputable and trustworthy, knowledgeable and experienced in Public Agency investing and able to meet all of their financial obligations. These institutions may include "primary" dealers or regional dealers that qualify under Securities and Exchange Commission (SEC) Rule 15c3-1 (uniform net capital rule).

Selection of broker/dealers used by an external investment adviser retained by the City

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Attachment: Pleasant Hill Investment Policy 2023 - Clean (Annual Investment Policy 2023) 4 will be at the sole discretion of the adviser. Where possible, transactions with broker/dealers shall be selected on a competitive basis and their bid or offering prices shall be recorded. If there is no other readily available competitive offering, best efforts will be made to document quotations for comparable or alternative securities. When purchasing original issue instrumentality securities, no competitive offerings will be required as all dealers in the selling group offer those securities at the same original issue price.

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

Repurchase Agreements: The City requires that Repurchase Agreements be collateralized only by securities authorized in accordance with California Government Code:
 The securities which collateralize the repurchase agreement shall be priced at Market Value, including any Accrued Interest plus a margin. The Market Value of the securities that underlie a repurchase agreement shall be valued at 102% or greater of the funds borrowed against those securities.

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Attachment: Pleasant Hill Investment Policy 2023 - Clean (Annual Investment Policy 2023) 5  Financial institutions shall mark the value of the collateral to market at least monthly and increase or decrease the collateral to satisfy the ratio requirement described above.
 The City shall receive monthly statements of collateral.

PRUDENCE
Pursuant to California Government Code, Section 53600.3, all persons authorized to make investment decisions on behalf of the City are trustees and therefore fiduciaries subject to the "prudent investor standard", which states:
“…all governing bodies of local agencies or persons authorized to make investment decisions on behalf of those local agencies investing public funds pursuant to this chapter are trustees and therefore fiduciaries subject to the prudent investor standard. When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the Agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the Agency. Within the limitations of this section and considering individual investments as part of an overall strategy, investments may be acquired as authorized by law.”
Officers acting in accordance with written procedures and the investment policy and exercising due diligence shall be relieved of personal responsibility for an individual security's credit risk or market price changes, provided deviations from expectations are reported in a timely fashion and appropriate action is taken to control adverse

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Attachment: Pleasant Hill Investment Policy 2023 - Clean (Annual Investment Policy 2023) 6 developments.

The following investments are authorized:

3. Municipal securities, including obligations of the City, the State of California and any local agency within the State of California, provided that:
a) The securities are rated in a rating category of “A” or its equivalent or better by at least one nationally recognized statistical rating organization (“NRSRO”).
b) No more than 5% of the portfolio may be invested in any single issuer.

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Attachment: Pleasant Hill Investment Policy 2023 - Clean (Annual Investment Policy 2023) 7 c) No more than 30% of the portfolio may be in Municipal Securities. d) The maximum maturity does not exceed five (5) years.

4. Municipal securities (Registered Treasury Notes or Bonds) of any of the other 49 states in addition to California, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by a state or by a department, board, agency, or authority of any of the other 49 states, in addition to California:
a) The securities are rated in a rating category of “A” or its equivalent or better by at least one NRSRO.
b) No more than 5% of the portfolio may be invested in any single issuer. c) No more than 30% of the portfolio may be in Municipal Securities. d) The maximum maturity does not exceed five (5) years.

6. Commercial Paper, provided that the securities are issued by an entity that meets all of the following conditions in either paragraph (a) or (b) and other requirements specified below:
a) Securities issued by corporations:
o A corporation organized and operating in the United States with assets more than $500 million.
o The securities are rated “A-1” or its equivalent or better by at least one NRSRO.
o If the issuer has other debt obligations, they must be rated in a rating category of “A” or its equivalent or better by at least one NRSRO.
b) Securities issued by other entities:
o The issuer is organized within the United States as a special purpose corporation, trust, or limited liability company. o The securities must have program-wide credit enhancements including, but not limited to, overcollateralization, letters of credit, or a surety bond.

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Attachment: Pleasant Hill Investment Policy 2023 - Clean (Annual Investment Policy 2023) 8 o The securities are rated “A-1” or its equivalent or better by at least one NRSRO.
 No more than 10% of the outstanding commercial paper of any single issuer.
 No more than 25% of the City’s investment assets under management may be invested in Commercial Paper.
 No more than 5% of the portfolio may be invested in any single issuer.  The maximum maturity does not exceed 270 days.

9. Collateralized Time Deposits (Non-Negotiable Certificates of Deposit) in state or federally chartered banks, savings and loans, or credit unions in excess of insured amounts which are fully collateralized with securities in accordance with California law, provided that:
d) No more than 20% of the portfolio will be invested in a combination of federally insured and collateralized time deposits.
e) The maximum maturity does not exceed five (5) years.

10. Collateralized Bank Deposits. City’s deposits with financial institutions will be collateralized with pledged securities per California Government Code, Section

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Attachment: Pleasant Hill Investment Policy 2023 - Clean (Annual Investment Policy 2023) 9 53651. There are no limits on the dollar amount or percentage that the City may invest in collateralized bank deposits.

14. Local Agency Investment Fund (LAIF) - pool established by the State Treasurer for the benefit of local agencies, up to the maximum amount permitted by LAIF.

15. Supranational obligations, provided that:

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Attachment: Pleasant Hill Investment Policy 2023 - Clean (Annual Investment Policy 2023) 10  Issues are US dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, International Finance Corporation, or Inter-American Development Bank.
 The securities are rated in a rating category of “AA” or its equivalent or better by a NRSRO.
 No more than 30% of the total portfolio may be invested in these securities.
 No more than 10% of the portfolio may be invested in any single issuer.  The maximum maturity does not exceed five (5) years.

INELIGIBLE INVESTMENTS
 State law notwithstanding, any investments not specifically described herein are prohibited, including, but not limited to futures and options.  In accordance with Government Code, Section 53601.6, investment in inverse floaters, range notes, or mortgage derived interest-only strips is prohibited.
 Investment in any security that could result in a zero interest accrual if held to maturity is prohibited Under a provision sunsetting on January 1, 2026, securities backed by the U.S. Government that could result in a zero- or negative-interest accrual if held to maturity are permitted.  Trading securities for the sole purpose of speculating on the future direction of interest rates is prohibited.
 Purchasing or selling securities on margin is prohibited.  The use of reverse repurchase agreements, securities lending or any other form of borrowing or leverage is prohibited.

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Attachment: Pleasant Hill Investment Policy 2023 - Clean (Annual Investment Policy 2023) 11  The purchase of foreign currency denominated securities is prohibited.  Agencies that are not Qualified Institutional Buyers (QIB) as defined by the Securities and Exchange Commission are prohibited from purchasing Private Placement Securities. The SEC defines a QIB as having at least $100,000,000 in securities owned and invested.

RISK MANAGEMENT AND DIVERSIFICATION
Mitigating Credit Risk in the Portfolio
Credit risk is the risk that a security or a portfolio will lose some or all its value due to a real or perceived change in the ability of the issuer to repay its debt. The City will mitigate credit risk by adopting the following strategies:
 The diversification requirements included in the “Authorized Investments” section of this policy are designed to mitigate credit risk in the portfolio.  No more than 5% of the total portfolio may be deposited with or invested in securities issued by any single issuer unless otherwise specified in this policy.

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Attachment: Pleasant Hill Investment Policy 2023 - Clean (Annual Investment Policy 2023) 12  The City may elect to sell a security prior to its maturity and record a capital gain or loss in order to manage the quality, liquidity or yield of the portfolio in response to market conditions or City’s risk preferences.  If a security owned by the City is downgraded to a level below the requirements of this policy, making the security ineligible for additional purchases, the following steps will be taken:
 Any actions taken related to the downgrade by the investment manager will be communicated to the City Treasurer in a timely manner.
 If a decision is made to retain the security, the credit situation will be monitored and reported to the City Council.

REPORTING
According to state law, the City Treasurer shall render an investment report no less than quarterly to the chief executive officer and the legislative body of the City.

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Attachment: Pleasant Hill Investment Policy 2023 - Clean (Annual Investment Policy 2023) 13 POLICY REVIEW
This investment policy shall be reviewed by the City Council at least annually to ensure its consistency with the overall objectives of preservation of principal, liquidity, rate of return, and its relevance to current law and financial and economic trends. Amendments and modifications to the policy shall be accepted by the City Council prior to implementation.

Respectfully submitted,
Andrew Kalinowski
City Treasurer
July 1, 2023

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Attachment: Pleasant Hill Investment Policy 2023 - Clean (Annual Investment Policy 2023) 14 Glossary of Investment Terms
Agencies. Shorthand market terminology for any obligation issued by a governmentsponsored entity (GSE), or a federally related institution. Most obligations of GSEs are not guaranteed by the full faith and credit of the US government. Examples are: