Pleasanton City Council
June 18, 2024

CITY COUNCIL

REGULAR MEETING AGENDA
Tuesday, June 18, 2024
7:00 PM

City Council Chamber
200 Old Bernal Avenue
Pleasanton, CA 94566

The meeting will be held in-person, broadcast live on Channel 29 and at https://www.tri- valleytv.org and streamed at https://www.youtube.com/user/TheCityofPleasanton.

Public participation: It is requested that members of the public wishing to address the City Council submit a speaker card. When public comment is opened on an agenda item, individuals may speak once per agenda item.

To submit written public comment regarding an open session item on this meeting agenda visit https://forms.cityofpleasantonca.gov/f/writtenpubliccomment. Comments will be accepted by the City Clerk’s Office until 12:00 p.m. on the day of the Council meeting.

In Person at Council Chamber:
• Submit a physical speaker card to the City Clerk at the meeting. When your name is called, please provide comment at the podium.

CALL TO ORDER
• Pledge of Allegiance
• Remarks by Councilmember Balch
• Roll Call
Resolution No. 2024-042
Ordinance No. 2283

REPORT ON CLOSED SESSION

AGENDA AMENDMENTS

CONSENT CALENDAR
Items listed on the consent calendar are considered routine in nature and may be enacted by one motion. If discussion is required, that particular item will be removed from the consent calendar and will be considered separately.

City Manager

1. Adopt a resolution authorizing the City Manager to purchase Bright Choice as the default electricity product for the City of Pleasanton's municipal accounts to save approximately $80,000 per year or $320,000 over the next four years Community Development

City Council Agenda Page 2 of 4 June 18, 2024

2. Actions of the Zoning Administrator and Planning Commission

3. Adopt and waive second reading of Ordinance No. 2282 approving the Sixth Amendment to the Development Agreement for the Stoneridge Shopping Center, located a1008 through 1700 Stoneridge Mall Road, governing a previously- approved approximately 362,790 square-foot shopping center expansion to extend the term for six months, with potential additional extensions of either 18 months or two years, and a further potential extension of two years thereafter, subject to the completion of performance standards as set forth in the proposed amendment Finance

4. Adopt a resolution approving Fiscal Year 2024/25 Investment Policy and Guidelines

5. Approve Fiscal Year 2024/25 recurring purchase order agreements

6. Adopt a resolution approving the Fiscal Year 2024/25 appropriations limit

7. Approve an agreement with Chandler Asset Management, Inc. for Investment Management Services for three years from July 1, 2024 through June 30, 2027 with the not-to-exceed aggregate total of $218,000 over a three-year term with an option for two additional years

8. Accept the monthly disbursements and investment report for April 2024 Police

9. Approve the third amendment to the existing professional services agreement with All City Management Services for School Crossing Guard Services for the 2024/2025 school year by increasing the total amount by $663,327 and extending the term through Fiscal Year 2024/25 for a total amount of $2,951,781

10. Approve the First Amendment to the Memorandum of Understanding with the Pleasanton Unified School District for a Term of One Year, through June 30, 2025, for the School Resource Officer program

11. Approve the third amendment to the Professional Services Agreement with Bonita House Inc. to increase the amount by $347,972 and extend the term for one year, through June 20, 2025, to provide clinician services for the Alternate Response Unit, for a total not-to-exceed amount of $1,123,916 over the three-year term Public Works

12. Public Hearing - Adopt resolutions approving the 2024/25 Annual Assessments for Landscape Maintenance Districts 1984-1 (Ponderosa-Del Prado), 1993-1 (Windsor), 1993-2 (Bonde Ranch), 1994-1 (Oak Tree Farm), and 1995-1 (Moller Ranch)

City Council Agenda Page 3 of 4 June 18, 2024

13. Adopt a resolution to incorporate engineering recommendations for the list of resurfacing streets into the Streets Capital Improvement Program, Annual Resurfacing and Reconstruction of Various Streets Project, CIP No. 25503 for Fiscal Year 2024/25 funded by Senate Bill 1, the Road Repair and Accountability Act of 2017

14. Approve agreement between City of Pleasanton and Zone 7 Water Agency to perform Phase I Feasibility Review for the Regional Groundwater Facilities Project

15. Approve three-year trash collection maintenance services agreement with Universal Site Services, Inc., in the not-to-exceed contract amount of $527,048 with the option to extend two additional one-year extensions

16. Adopt Ordinance No. 2281 amending Ordinance No. 1572 to update Pleasanton Municipal Code Chapter 9.14 to conform with obligations specified in the City of Pleasanton's Municipal Regional National Pollutant Discharge Elimination System Permit

MEETING OPEN TO THE PUBLIC

17. Presentation of a Proclamation to recognize the City of Pleasanton's 130th anniversary of incorporation

18. Presentation by Three Valleys Community Foundation

19. Public Comment regarding items not listed on the agenda – Speakers are limited to 3 minutes.

PUBLIC HEARINGS AND OTHER MATTERS
If necessary to ensure completion of the following items, the Mayor may alter time limits.

20. Receive a report outlining polling results, draft ballot measure language, and other considerations related to a local sales tax ballot measure

MATTERS INITIATED BY COUNCIL

COUNCIL REPORTS
Brief reports on conferences, seminars, and meetings attended by the Council

ADJOURNMENT

Notice
Under Government Code §54957.5, any writings/documents regarding an open session item on this agenda and items received by the City Clerk’s Office by 12:00 p.m. on the day of the meeting provided to a majority of the City Council after distribution of the agenda packet will be available for public inspection on the City’s

City Council Agenda Page 4 of 4 June 18, 2024

website https://www.cityofpleasantonca.gov/ and also at the Pleasanton Library located at 400 Old Bernal Ave., Pleasanton, CA 94566.

There is a 90-day limit for the filing of a challenge in the Superior Court to certain City administrative decisions and orders, which require a hearing by law, the receipt of evidence, and the exercise of discretion. The 90-day limit begins on the date the decision is final (Code of Civil Procedure § 1094.6). Further, if you challenge an action taken by the City Council in court, you may be limited, by California law, including but not limited to Government Code §65009, to raising only those issues you or someone else raised in the public hearing, or in written correspondence delivered to the City Council prior to or at the public hearing. The City Council may be requested to reconsider a decision if the request is made prior to the next City Council meeting, regardless of whether it is a regular or special meeting.

Accessible Public Meetings
The City of Pleasanton can provide special assistance for persons with disabilities to participate in public meetings. To make a request for a disability-related modification or accommodation (e.g., an assistive listening device), please contact the City Clerk’s Office at 123 Main Street, Pleasanton, CA 94566 or (925) 931-5027 at the earliest possible time. If you need sign language assistance, please provide at least two working days’ notice prior to the meeting date.

Item #1

CITY COUNCIL AGENDA REPORT

June 18, 2024
City Manager

TITLE: ADOPT A RESOLUTION AUTHORIZING THE CITY MANAGER TO PURCHASE

BRIGHT CHOICE AS THE DEFAULT ELECTRICITY PRODUCT FOR THE CITY

OF PLEASANTON'S MUNICIPAL ACCOUNTS TO SAVE APPROXIMATELY $80,000 PER YEAR OR $320,000 OVER THE NEXT FOUR YEARS

SUMMARY
The City is currently exploring ways to increase revenue and address its forecasted structural budget deficit. On May 21, 2024, the City held a workshop outlining a contingency menu of potential service reductions. To support this effort, staff recommends adjusting the default electricity product for municipal accounts from Renewable 100 to Bright Choice from July 1, 2024, to July 1, 2028, at which point the City would plan for and consider re-enrolling in Renewable 100. This change is expected to achieve significant cost savings (approximately $80,000 per year or $320,000 over the next four years), contributing to the City’s financial management while still maintaining a commitment to sustainability.

RECOMMENDATION
Adopt a resolution authorizing the City Manager to purchase Bright Choice as the default electricity product for the City of Pleasanton's municipal accounts to save approximately $80,000 per year or $320,000 over the next four years.

BACKGROUND
In January 2021, the City Council authorized the City Manager to purchase Renewable 100 as the default electricity product for the City of Pleasanton’s municipal accounts. Renewable 100, provided by Ava Community Energy (formerly East Bay Community Energy), offers 100 percent renewable energy with zero greenhouse gas (GHG) emissions. While this initiative has significantly contributed to the City’s sustainability goals, the current financial challenges necessitate exploring cost-saving measures.

At a workshop on May 21, 2024, staff presented a report outlining a contingency menu of service reductions that would be considered as part of addressing the predicted structural budget deficit if a small 1/2-cent sales tax revenue measure is not placed on the November 2024 ballot, or voters do not approve the proposed sales tax increase in November 2024. A number of options were discussed at the workshop, including analyzing existing City agreements to look for potential savings. As staff continues to explore all options to reduce costs, following City Council direction, future items may be considered to reduce or eliminate funding for other community memberships and partnerships.

Given the City’s financial outlook, staff has identified the potential to reduce electricity costs beginning in the next fiscal year by switching from Renewable 100 to Bright Choice. Bright Choice provides 49.4 percent eligible renewable energy. This adjustment aims to achieve significant cost savings (approximately $80,000 per year or $320,000 over the next four years)

while still supporting the City’s environmental objectives.

DISCUSSION
The City is facing a severe and increasing structural deficit, meaning that expenses have and will continue to grow faster than revenues. Current forecasts indicate an average budget shortfall of approximately $13 million annually over the next eight years, which the City has been working to address proactively with a combination of reduced costs and new revenue.

For that reason, staff has evaluated options to reduce discretionary spending in a variety of areas, including looking at existing agreements, such as the current Ava Community Energy plan.

When considering this change, the first priority was to ensure the City would still meet its climate action goals as outlined in the Climate Action Plan (CAP) 2.0 (https://www.cityofpleasantonca.gov/our-government/key-initiatives/climate-action-plan/). To achieve this objective, staff analyzed the impacts on the City’s CAP 2.0 to assess outcomes. In the scenario where the City reduces service from Renewable 100 to Bright Choice from July 1, 2024 to July 1, 2028 as proposed in this recommendation, and then re-enrolls in Renewable 100 beginning July 1, 2028, the City would continue to meet its CAP 2.0 2030 goal (assuming all other actions from CAP 2.0 meet their quantified emissions reduction targets). The CAP 2.0 greenhouse gas (GHG) reductions are considered a point in time rather than cumulative.

Assuming full implementation of CAP 2.0, the city has a small buffer of 1,336 metric tons (MT) of CO2e, which exceeds the 2030 reduction target. It is worth noting that this scenario results in no effect on GHG targets since it assumes 100 percent carbon-free electricity in 2030.

Switching from Renewable 100 to Bright Choice will reduce the City's electricity costs while still providing a significant portion of renewable energy. Bright Choice offers 49.4 percent eligible renewable energy. This adjustment will not only help the City manage its budget but also maintain a commitment to environmental sustainability.

Additionally, this change would not affect Residential, Commercial, and Industrial Accounts.

These accounts, by default were set up as Bright Choice customers will still maintain the option to switch from Bright Choice to Renewable 100 if they wish.

EQUITY AND SUSTAINABILITY
While Bright Choice has a higher GHG emission factor than Renewable 100, it still supports the City’s sustainability goals outlined in the Climate Action Plan (CAP) 2.0. The impact on the City’s overall GHG emissions has been evaluated, and while there will be a temporary increase in emissions, the City will still make significant strides towards its 2045 carbon neutrality goal.

OUTREACH
No public outreach was conducted for this item.

STRATEGIC PLAN ALIGNMENT
This item aligns with the ONE Pleasanton Strategic Plan goals Funding Our Future: Fiscal Sustainability and Investing in Our Environment: Infrastructure, Public Facilities, and Sustainability. By optimizing the City's electricity expenses, the City is taking a proactive approach to stabilizing the near-term financial challenge.

FISCAL IMPACT
Shifting to Bright Choice is projected to save the City approximately $80,000 annually, based on 2023 usage levels. Over the four-year period from July 1, 2024, to July 1, 2028, this would result in total savings of approximately $320,000. These savings make a significant contribution toward addressing the forecasted structural budget deficit.

Prepared by: Submitted by: Approved by:

Aarón Zavala, Assistant to
the City Manager
Alexa Jeffress, Deputy City Manager

Gerry Beaudin, City
Manager

Attachments:

1. Resolution

2. CAP 2.0 Analysis

Attachment 1
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PLEASANTON

AUTHORIZING THE CITY MANAGER TO PURCHASE BRIGHT CHOICE AS THE DEFAULT ELECTRICITY PRODUCT FOR PLEASANTON’S MUNICIPAL ACCOUNTS WHEREAS, on January 19, 2021, the City Council authorized the City Manager to purchase Renewable 100 as the default electricity product for Pleasanton’s municipal accounts; and
WHEREAS, Renewable 100, provided by Ava Community Energy (formerly East Bay Community Energy), offers 100% renewable energy with zero greenhouse gas (GHG) emissions, significantly contributing to the city’s sustainability goals; and WHEREAS, the City of Pleasanton is currently facing financial challenges and exploring cost-saving measures to address its forecasted structural budget deficit; and WHEREAS, on May 21, 2024, the city held a workshop outlining a contingency menu of potential service reductions; and
WHEREAS, staff has identified the potential to reduce electricity costs by switching from Renewable 100 to Bright Choice, which provides 49.4% eligible renewable energy; and WHEREAS, switching to Bright Choice is projected to save the city approximately $80,000 annually, based on 2023 usage levels, resulting in total savings of approximately $320,000 over the four-year period from July 1, 2024, to July 1, 2028; and WHEREAS, this adjustment will support the city’s financial management while maintaining a commitment to sustainability, and will not affect Residential, Commercial, and Industrial Accounts, which will still have the option to switch from Renewable 100 to Bright Choice if they wish; and
WHEREAS, analysis has confirmed that this adjustment will allow the city to continue meeting its Climate Action Plan (CAP) 2.0 2030 goal, assuming all other actions from CAP 2.0 meet their quantified emissions reduction targets;

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PLEASANTON DOES RESOLVE, DECLARE, DETERMINE AND ORDER THE FOLLOWING:

SECTION 1. Hereby authorizes the City Manager to purchase Bright Choice as the default electricity product for Pleasanton’s municipal accounts from July 1, 2024, to July 1, 2028, at which point the city will reenroll in Renewable 100.

PASSED, APPROVED AND ADOPTED by the City Council of the City of Pleasanton at a regular meeting held on June 18, 2024
I, Jocelyn Kwong, City Clerk of the City of Pleasanton, California, certify that the foregoing resolution was adopted by the City Council at a regular meeting held on the 18 day of June, 2024, by the following vote:

Resolution No.

Ayes:

Noes:

Absent:

Abstain:
_____________________________
Jocelyn Kwong, City Clerk
APPROVED AS TO FORM:
_______________________________
Daniel G. Sodergren, City Attorney

Rincon Consultants, Inc.
180 North Ashwood Avenue
Ventura, California 93003
805-644-4455

w w w. r in co n co nsu ltan ts. co m

M E M O R A N D U M
Date: May 3, 2024
To: Aarόn Zavala
Assistant to the City Manager
City of Pleasanton
123 Main St.

Pleasanton, CA 94566
Via: [email protected]
From: Erica Linard, Project Manager, [email protected] Joanna Thelen, Analyst, [email protected]
Subject: CCA Renewable Energy Scenario Planning
Project Number: 19-08470
Rincon Consultants, Inc. (Rincon), a science -based climate and environmental consulting firm, was engaged by the City of Pleasanton (the City) to estimate the impact on the community’s greenhouse gas (GHG) reduction targets should the City opt to switch municipal operations from 100 percent renewable to lower renewable energy packages that have a higher GHG emission factor . The community GHG emissions reduction targets are established in the City of Pleasanton’s Climate Action Plan (CAP) 2.0 which was compl eted with the assistance of Cascadia Consulting Group and Rincon Consultants in 2023. Under the CAP 2.0, the City established a lead -by-example measure to enroll municipal buildings and facilities in 100 percent renewable energy with East Bay Community Ene rgy (now Ava), the regional Community Choice Aggregation (CCA) electricity provider. Ava’s 100 percent renewable energy package has a zero emissions factor . Therefore, any City buildings and facilities enrolled in this energy package also produce zero GHG emissions. Due to cost considerations, the City is seeking to understand the impact of transitioning municipal buildings from Ava’s Renewable 100 to the Bright Choice energy package.

The purpose of this memorandum is to estimate GHG reduction impacts resulting from the following scenarios specified by the City:
• Scenario 1: Business as Usual scenario in which the City maintains enrollment in Renewable 100 • Scenario 2: Reduction to Bright Choice beginning July 1, 2024 and re -enrollment in Renewable 100 beginning July 1, 2028
• Scenario 3: Reduction to Bright Choice beginning July 1, 2024 through the end of the CAP (2045) The memorandum provides a brief overview of the method and data sources used to estimate GHG emissions changes and the associated impacts to the established GHG reduction target s for the scenarios specified.

Attachment 2

City of Pleasanton
CCA Renewable Energy Scenario Planning
2 Methodology
Data Sources
GHG emissions associated with electricity consumption are based on the quantity of electricity used and the emission factor of the sourced electricity. Electricity emission factors are driven by the power mix (e.g., coal, natural gas, solar, wind) that makes up the ele ctricity package profile. This analysis sourced 2023 activity data from the City of Pleasanton, which was provided via email, and emissions factors from the California Energy Commission (CEC) to estimate current emissions from electricity consumption at municipal buildings and facilities. For the purpose of assessing the scenario impacts, it was assumed that electricity consumption by municipal buildings and facilities would remain constant over time. This assessment does not account for changes in electricity consumption by the municipality that may result due to electrification of buildings, development of on -site renewable energy, or increased charging of electric vehicles.1 Table 1 below provides a summary of data sources referenced for establishing 2023 activity data and emissions factors from which the forecasted GHG reduction impacts were determined.

Table 1 Data Sources
Data Type Description Value Unit Source
Activity Data Municipal Building and
Facilities Electricity
Consumption
8,115,921 kWh

City of Pleasanton
Transmission and Distribution
Losses

5.1% Percentage eGRID1
Emissions Factors Ava (Renewable 100) 0 lbs CO2e/MWh CEC Power Content Labels2,3 Ava (Bright Choice) 496 lbs CO2e/MWh CEC Power Content Labels2,3 Notes:

1. Environmental Protection Agency (EPA). 2024. eGRID Data Explorer, grid gross loss rates 2022. Available at:
https://www.epa.gov/egrid/data-explorer

2. Verified power content labels for 2023 have not yet been processed and released by the California Energy Commission (CEC). The verified 2022 power content labels were used as an approximation of 2023 emissions factors.

3. California Energy Commission (CEC). 2022. 2022 Power Content Label, East Bay Community Energy. Available at:
https://www.energy.ca.gov/filebrowser/download/6031
Assumptions
For the purposes of forecasting GHG emissions and associated changes in GHG reduction targets, the following set of assumptions were made to conduct the assessment:
• The rate of municipal electricity consumption remains constant from 2023 through to 2045. • 100 percent of municipal buildings and facilities will shift to/from Renewable 100 and Bright Choice at the times specified in the scenarios, where applicable. • Transmission and distribution losses will remain consistent from 2023 through to 2045.

1 As specified by the City in previous conversations, this assessment need only estimate based on current conditions. The City will consider conducting an assessment incorporating considerations for electrification and increased EV fleet in a future analysis.

City of Pleasanton
CCA Renewable Energy Scenario Planning
3 • Ava’s Bright Choice package will align with State RPS requirements to be 60 percent renewable by 2030, 90 percent by 2035, 95 percent by 2040, and 100 percent by 2045.

Results
GHG Emissions Forecast
Under the first scenario presented by the City, municipal buildings and facilities maintain enrolment in Ava’s Renewable 100 electricity package which has an emissions factor of zero, thereby resulting in zero emissions (see Table 2) . Under scenario 2, the City begins and ends enrolment on July 1, effectively resulting in a 50/50 enrollment split between Renewable 100 and Bright Choice in the years 2024 and 2028. Scenario 3 also results in a 50/50 enrollment split beginning in 2024 but maintains 100 percent enrolment in Bright Choice through to 2045. The GHG emissions associated with the second and third scenarios are presented in Tables 3 and 4 below. Additionally, Figure 1 shows the impact of each scenario on the total community GHG emissions over time, and the impact on the City reaching its 2030 GHG emissions target.

Rincon Consultants, Inc.
180 North Ashwood Avenue
Ventura, California 93003
805-644-4455

w w w. r in co n co nsu ltan ts. co m
Table 2 Scenario 1 Forecasted GHG Emissions
Parameter 2023 2024 2025 2026 2027 2028 2029 2030 2035 2040 2045 Electricity [kWh] 8,115,921 8,115,921 8,115,921 8,115,921 8,115,921 8,115,921 8,115,921 8,115,921 8,115,921 8,115,921 8,115,921 EF (Renewable 100)
[MT CO2e/kWh]
0 0 0 0 0 0 0 0 0 0 0
Percent (Renewable
100)
100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% EF (Bright Choice)
[MT CO2e/kWh]

0.000225 0.000218 0.000212 0.000205 0.000198 0.000191 0.000185 0.000178 0.000044 0.000022 0.000000 Percent (Bright
Choice)

0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% T&D Losses 5.10% 5.10% 5.10% 5.10% 5.10% 5.10% 5.10% 5.10% 5.10% 5.10% 5.10% Total Emissions 0 0 0 0 0 0 0 0 0 0 0
Table 3 Scenario 2 Forecasted GHG Emissions
Parameter 2023 2024 2025 2026 2027 2028 2029 2030 2035 2040 2045 Electricity [kWh] 8,115,921 8,115,921 8,115,921 8,115,921 8,115,921 8,115,921 8,115,921 8,115,921 8,115,921 8,115,921 8,115,921 EF (Renewable 100)
[MT CO2e/kWh]
0 0 0 0 0 0 0 0 0 0 0
Percent (Renewable
100)
100.00% 50.00% 0.00% 0.00% 0.00% 50.00% 100.00% 100.00% 100.00% 100.00% 100.00% EF (Bright Choice)
[MT CO2e/kWh]

0.000225 0.000218 0.000212 0.000205 0.000198 0.000191 0.000185 0.000178 0.000044 0.000022 0.000000 Percent (Bright
Choice)

0.00% 50.00% 100.00% 100.00% 100.00% 50.00% 0.00% 0.00% 0.00% 0.00% 0.00% T&D Losses 5.10% 5.10% 5.10% 5.10% 5.10% 5.10% 5.10% 5.10% 5.10% 5.10% 5.10% Total Emissions 0 931 1,804 1,747 1,689 816 0 0 0 0 0

City of Pleasanton
CCA Renewable Energy Scenario Planning
5 Table 4 Scenario 3 Forecasted GHG Emissions
Parameter 2023 2024 2025 2026 2027 2028 2029 2030 2035 2040 2045 Electricity [kWh] 8,115,921 8,115,921 8,115,921 8,115,921 8,115,921 8,115,921 8,115,921 8,115,921 8,115,921 8,115,921 8,115,921 EF (Renewable 100)
[MT CO2e/kWh]
0 0 0 0 0 0 0 0 0 0 0
Percent (Renewable
100)
100.00% 50.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% EF (Bright Choice)
[MT CO2e/kWh]

0.000225 0.000218 0.000212 0.000205 0.000198 0.000191 0.000185 0.000178 0.000044 0.000022 0.000000 Percent (Bright
Choice)

0.00% 50.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% T&D Losses 5.10% 5.10% 5.10% 5.10% 5.10% 5.10% 5.10% 5.10% 5.10% 5.10% 5.10% Total Emissions 0 931 1,804 1,747 1,689 1,632 1,574 1,517 379 190 0

City of Pleasanton
CCA Renewable Energy Scenario Planning
6 Figure 4 Scenario Impact on Community GHG Emissions

Rincon Consultants, Inc.
180 North Ashwood Avenue
Ventura, California 93003
805-644-4455

w w w. r in co n co nsu ltan ts. co m
Municipal Electricity Impacts on Pleasanton’s GHG Reduction Targets The Pleasanton CAP 2.0 establishes regional targets based on annual GHG emissions estimates, while the GHG reductions from measures and actions are quantified on an annual and cumulative basis.

The GHG reductions for municipal building decarbonization measures and actions were established assuming 100 percent municipal building and facilities enrolment in Renewable 100. Therefore, the GHG emissions attributable to each enrolment scenario were added to total annual community GHG emissions reductions to determine impacts to annual GHG targets outlined in the CAP 2.0 . The CAP

2.0 targets are only quantified for the years 2030 and 2045 and do not take into account cumulative impacts. Therefore, the impacts of Scenario 1 and Scenario 2 have the same overall impact on meeting the City’s 2030 target. However, Scenario 2 allows for an additional ~7,000 MT CO 2e of emissions over time. However, under Scenario 3 the City does not meet its 2030 goal (assuming all other actions from CAP 2.0 meet their quantified emissions reductions). Due to SB 100 all electricity in California is expected to be carbon free by 2045, and therefore, all three Scenarios are carbon free by that time.

Table 4 summarizes the percent change in GHG emissions reductions compared to estimated reduction set in the CAP 2.0.

Table 5 Scenario Percent Change from Target GHG Emissions 2030 2045
Scenario CAP Target Forecasted
Emissions
Emissions
Over Target
CAP Target Forecasted
Emissions
Emissions
Over Target
Scenario 1 341,188 339,852 -1,336 0 234,960 234,960
Scenario 2 341,188 339,852 -1,336 0 234,960 234,960
Scenario 3 341,188 341,369 181 0 234,960 234,960
Conclusion
The analysis of the three scenarios regarding the City’s energy procurement choices reveals nuanced impacts on its quantified GHG emissions reductions. Assuming full implementation of CAP 2.0, the City has a small buffer of 1,336 MT CO 2e which exceeds the 2030 reduction target. Scenarios 1 and 2 result in no effect on GHG targets since both assume 100% carbon free electricity in 2030. However, Scenario 3 highlights that even a partial shift away from 100 percent renewable energy can lead to discernible impacts to GHG targets in 2030 and 2045 . By choosing long-term municipal building enrollment in Ava’s Bright Choice package, the community will fail to meet the 2030 target by 181 MT CO2e (see Table 4), effectively eliminating the small surplus of total emissions reductions achieved by the CAP 2.0 measures and actions. However, due to State RPS requirements driving electric utilities to produce zero emissions by 2045, all three scenarios are estimated to have no impact on 2045 community GHG emissions provided in the City’s CAP 2.0 (i.e. 234,960 MT CO2e).

Although this analysis focuses on annual GHG emissions, it ’s important to acknowledge the introduction of variations in cumulative emissions over time, a metric used to quantify GHG reductions from measures and actions in the CAP 2.0. Moreover, a municipality's decision to enroll in 100 percent renewable energy is often not solely driven by meeting targets , but to also set a precedent for the community and encourag e greater participation in sustainable energy practices. Thus, while the

City of Pleasanton
CCA Renewable Energy Scenario Planning
8 targets experience minimal impact, the broader influence of municipal leadership in promoting Ava’s Renewable 100 electricity package warrants consideration.

Item #2

CITY COUNCIL AGENDA REPORT
June 18, 2024
Community Development
TITLE: ACTIONS OF THE ZONING ADMINISTRATOR AND PLANNING

COMMISSION
P24-0295, Kamran Dadgari
Application for Administrative Design Review approval to construct an approximately 828-square-foot second-floor addition to the northwest of the home located at 7620 Fairoaks Drive.

Project Information:

Existing floor area: 1,668 square feet
Total floor area with addition: 2,540 square feet
Lot size: 7,230 square feet
Existing floor area ratio: 23.07 percent
Total floor area ratio with addition: 35.10 percent
Approved. (9 days)
P24-0293, Lynnewood United Methodist Church/Dennis Dillard Application for Design Review approval to raise the height of the existing mechanical screen from 2'-6" to 5' tall at 4444 Black Avenue.

Approved. (6 days)
P24-0275, Dan Chou/Have Blue, LLC
Application for Minor Conditional Use Permit (MCUP) approval to allow Massage Envy Spa to be located at 4225 Rosewood Drive, Ste. 20 in the Rose Pavilion Shopping Center.

Approved. (8 days)
P24-0302, Tom Florini/Essex Property Trust
Application for Design Review approval to modify the color scheme for 16 existing buildings within Galloway Apartments and Galloway at Hacienda located at 4863 Willow Road and 5789 Gibraltar Drive.

Approved. (4 days)

P24-0305, AJS Architecture Planning/Anthony Sarboraria
Application for Administrative Design Review approval to construct an approximately: 1) 1,777-square-foot single-story addition with an approximately 479-square-foot second- floor addition to the north; and 2) an approximately 74-square-foot, 13-foot-tall covered front porch to the west of the home located at 6142 Corte Santiago.

Project Information:

Existing floor area: 3,099 square feet
Total floor area with addition: 3,578 square feet
Lot size: 13,666 square feet
Existing floor area ratio: 22.68 percent
Total floor area ratio with addition: 26.18 percent
Approved. (8 days)
P24-0285, Laura Dipper/Seigo Designs
Application for Administrative Design Review approval to construct a detached, approximately 192-square-foot accessory structure with an approximate height of 13- feet and 7-inches at 482 Sangro Court.

Project Information:

Existing floor area: 2,870 square feet
Total floor area with addition: 3,062 square feet
Lot size: 18,295 square feet
Existing floor area ratio: 15.69 percent
Total floor area ratio with addition: 16.74 percent
Approved. (15 days)
P24-0303, Alex Garduno/AGM Signs
Application for Sign Design Review approval to install two hanging signs for Park46 Real Estate located at 350 Main Street.

Approved. (1 day)
P24-0309, Kevin Dolder
Application for Administrative Design Review approval to construct two patio covers: 1) an approximately 384-square-foot, partially attached patio cover to the side yard with a maximum height of 12-feet; and 2) an approximately 256-square-foot, detached patio cover to the rear with a maximum height of 12-feet and 8-inches, located at 557 E.

Angela Street.

Approved. (9 days)

Prepared by: Submitted by: Approved by:

Melinda Denis
Zoning Administrator
Ellen Clark
Director of Community
Development
Gerry Beaudin
City Manager

Item #3

CITY COUNCIL AGENDA REPORT
June 18, 2024
Community Development
TITLE: ADOPT ORDINANCE NO. 2282 AN ORDINANCE OF THE CITY COUNCIL OF THE

CITY OF PLEASANTON APPROVING THE SIXTH AMENDMENT TO THE

STONERIDGE SHOPPING CENTER DEVELOPMENT AGREEMENT TO EXTEND

THE TERM FOR SIX MONTHS WITH POTENTIAL ADDITIONAL EXTENSIONS OF

THE TERM
The foregoing Ordinance No. 2282 was introduced at a regular meeting of the City Council on June 4, 2024, by the following vote:

Ayes: Councilmembers Arkin, Balch, Nibert, Testa, Mayor Brown Noes: None

Absent: None
Abstain: None

Ordinance No. 2282

ORDINANCE NO. 2282

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PLEASANTON

APPROVING THE SIXTH AMENDMENT TO THE STONERIDGE SHOPPING CENTER

DEVELOPMENT AGREEMENT TO EXTEND THE TERM FOR SIX MONTHS WITH

POTENTIAL ADDITIONAL EXTENSIONS OF THE TERM
WHEREAS, Stoneridge Properties LLC (Developer) has applied for a Sixth Amendment to the Development Agreement for the properties at 1008 - 1700 Stoneridge Mall Road for a six (6) month extension of the term to December 31, 2024, contingent upon a contribution of $50,000 by Developer towards the Stoneridge Mall Framework planning effort, plus an additional potential further extension of two (2) to four (4) years, contingent upon the deposit of an additional funds and a determination by the City Manager or City Council that Developer has made good faith material progress toward funding a master plan by December 31, 2026, regarding its approximately 362,790-square- foot remaining permitted expansion of the Stoneridge Shopping Center; and WHEREAS, a Supplemental Environmental Impact Report (SEIR) was prepared and certified on January 4, 2012, for the Housing Element update and Climate Action Plan General Plan Amendments and Rezonings that supplemented the Environmental Impact Report (EIR) prepared for the Pleasanton 2005-2025 General Plan, certified in July 2009. This SEIR and the Addendum for the Stoneridge Mall Commercial Replacement and Expansion Project dated April 16, 2019 anticipated completion of the subject 362,790 square foot expansion of the Stoneridge Shopping Center. In addition, the cumulative impacts of the development permitted under the Development Agreement and Sixth Amendment, plus all development proposed under the City of Pleasanton’s 2023-2031 Housing Element, was studied in the Program Environmental Impact Report (SCH 2022040091) for that Housing Element certified by the City Council on January 26, 2023, by Resolution 23-1357. The California Environmental Quality Act (CEQA) specifies that individual development projects that are covered by a previously certified EIR or SEIR are exempt from additional environmental review. Therefore, there is no additional environmental document regarding this Development Agreement extension is required pursuant to Public Resources Code §21083.3 and CEQA Guidelines §15183; and; and
WHEREAS, the Planning Commission held a public hearing on May 8, 2024, and adopted Resolution No. PC-2024-09, recommending the City Council approve the Sixth Amendment; and WHEREAS, on June 4, 2024, the City Council held a duly noticed public hearing on this application and considered all public testimony, agenda report, and related materials, including the recommendations of City staff and the Planning Commission; and WHEREAS, the City Council finds that accepting the initial $50,000 contribution and accepting potential additional deposits up to $150,000 will advance planning efforts for the Stoneridge Mall Framework plan, in conjunction with the 6-month to 4.5-year extension of the Development Agreement, is consistent with the City’s General Plan and will advance the master planning anticipated in the Stoneridge Mall Framework components adopted by the City Council on January 26, 2023.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PLEASANTON DOES HEREBY ORDAIN AS FOLLOWS:

Ordinance No. 2282

SECTION 1. Finds that the 362,790 square foot expansion of the Stoneridge Shopping Center as set forth in the Development Agreement, as amended by the proposed Sixth Amendment, was covered by the mitigated negative declaration adopted in connection with the original Development Agreement, as well as considered as part of the EIR for the Pleasanton 2005-2025 General Plan certified in July 2009, and the SEIR for the Housing Element Update and Climate Action Plan General Plan Amendments certified in January 2012, and addressed in the Addendum for the Stoneridge Mall Commercial Replacement and Expansion Project dated April 16, 2019. In addition, the cumulative impacts of the development permitted under the Agreement and this Sixth Amendment, plus all development proposed under the City of Pleasanton’s 2023-2031 Housing Element, was studied in the Program Environmental Impact Report (SCH 2022040091) for that Housing Element certified by the City Council on January 26, 2023, by Resolution No. 23-1357. This Sixth Amendment merely extends the term of the previously approved Agreement and is consistent with the General Plan, and there are no impacts peculiar to the parcel or unstudied impacts relevant to this Sixth Amendment.

SECTION 2. Finds that the Sixth Amendment is consistent with the objectives, policies, general land uses and programs specified in the vested General Plan; is compatible with the uses authorized in and the vested regulations prescribed for the land use district (C- R (Regional Commercial) and PUD-MU (Planned Unit Development – Mixed Use)) in which the property is located; is in conformity with public convenience, general welfare and good land use practices; will not be detrimental to the health, safety and general welfare of the City or the region surrounding the City; will not adversely affect the orderly development of property or the preservation of property values within the City; and will promote and encourage the development of the project by providing a greater degree of certainty with respect thereto.

SECTION 3. Approves the Sixth Amendment to the Development Agreement with Stoneridge Properties, LLC, which includes a six-month extension and a $50,000 contribution by Developer towards the Stoneridge Mall Framework and directs the City Manager to execute, as generally shown in the attached Exhibit A, which may be modified as determined by the City Manager and the City Attorney for consistency with this City Council action prior to execution.

SECTION 4. A summary of this ordinance shall be published once within fifteen (15) days after its adoption in “The Valley Times,” a newspaper of general circulation published in the City of Pleasanton, and the complete ordinance shall be posted for fifteen (15) days in the City Clerk’s office within fifteen (15) days after its adoption.

SECTION 5. This ordinance shall be effective thirty (30) days after its passage and adoption.

The foregoing Ordinance was introduced at a regular meeting of the City Council of the City of Pleasanton on June 4, 2024, and adopted on June 18, 2024, by the following vote:

Ayes:

Noes:

Absent:

Abstain:

Ordinance No. 2282

Karla Brown, Mayor
ATTEST:

Jocelyn Kwong, City Clerk
APPROVED AS TO FORM:

______________________________
Daniel G. Sodergren, City Attorney

Ordinance No. 2282

EXHIBIT A

SIXTH AMENDMENT TO DEVELOPMENT

AGREEMENT
(Page Intentionally Left Blank)

Ordinance No. 2282

RECORDING REQUESTED BY

CITY OF PLEASANTON
When Recorded, Return to:

Office of the City Clerk
City of Pleasanton
P.O. Box 520
Pleasanton, CA 94566
Recording Requested Pursuant to Government
Code Sections 27383 & 6103 – no fee

SIXTH AMENDMENT TO DEVELOPMENT AGREEMENT
THIS SIXTH AMENDMENT TO DEVELOPMENT AGREEMENT (the “Sixth Amendment”) is made and entered into by and between the CITY OF PLEASANTON, a municipal corporation of the State of California (“City”), and STONERIDGE PROPERTIES LLC, a Delaware limited liability company, doing business in California as STONERIDGE ASSOCIATES, LLC, as successor in interest to SECURITY TRUST COMPANY, as TRUSTEE under Trust No. 1860-0 (“Developer”), pursuant to the authority of California Government Code Sections 65864- 65869.5.

RECITALS
A. The City and Developer are parties to a Development Agreement (the "Agreement") dated as of November 5, 1992, as approved by the City Council under Ordinance No. 1578. The Agreement was recorded on April 2, 1993, as Instrument No. 93103418 in the Official Records of Alameda County. (Capitalized terms not otherwise defined in this Amendment shall have the meanings given to them in the Agreement; all references to the Agreement shall refer to the same as modified by the First, Second, Third and Fourth Amendments.)
B. The parties entered into the First Amendment to Development Agreement (the "First Amendment"), dated as of January 6, 1998, as approved by the City Council by its Ordinance No. 1732. The First Amendment to Development Agreement was recorded on February 5, 1998, as Instrument No. 98048535 in the Official Records of Alameda County.

C. The parties entered into the Second Amendment to Development Agreement (the "Second Amendment"), dated as of June 18, 2013, as approved by the City Council by its Ordinance No. 2073. The Second Amendment to Development Agreement was recorded on September 5, 2013, as Instrument No. 2013299219 in the Official Records of Alameda County.

D. The parties entered into the Third Amendment to Development Agreement (the "Third Amendment"), dated as of August 21, 2018, as approved by the City Council by its Ordinance No. 2173. The Third Amendment to Development Agreement was recorded on September 19, 2018, as Instrument No. 2018182964 in the Official Records of Alameda County.

E. The parties entered into the Fourth Amendment to Development Agreement (the “Fourth Amendment”), dated as of September 6, 2022, as approved by the City Council by its Ordinance 2230. The Fourth Amendment was recorded on September 12, 2022, as Instrument No. 2022156727 in the Official Records of Alameda County.

Ordinance No. 2282

F. The parties entered into the Fifth Amendment to Development Agreement (the “Fifth Amendment”), as approved by the City Council by its Ordinance 2249. The Fifth Amendment was recorded on March 4, 2024, as Instrument No. 2024031835 in the Official Records of Alameda County. It provides that the Agreement shall terminate July 1, 2024.

G. The City and Developer desire to extend the term of the Agreement. In order to strengthen the planning process, encourage private participation in comprehensive planning, secure the orderly development of the shopping center expansion and provide greater opportunities for traffic management and cohesive, attractive site design and improvements and related economic benefits to the City, and to facilitate the future development of a comprehensive master plan for the shopping center, the City has determined that this Sixth Amendment is an appropriate supplement to the Agreement.

H. The Agreement originally permitted an expansion of 380,000 square feet, which was reduced to 362,790 square feet due to construction of P. F. Chang's and the Cheesecake Factory. The permitted remaining expansion was covered by the mitigated negative declaration adopted in connection with the original Development Agreement, as well as considered as part of the EIR for the Pleasanton 2005-2025 General Plan certified in July 2009, and the SEIR for the Housing Element Update and Climate Action Plan General Plan Amendments certified in January 2012, and addressed in the Addendum for the Stoneridge Mall Commercial Replacement and Expansion Project dated April 16, 2019. In addition, the cumulative impacts of the development permitted under the Agreement and this Sixth Amendment, plus all development proposed under the City of Pleasanton’s 2023-2031 Housing Element, was studied in the Program Environmental Impact Report (SCH 2022040091) for that Housing Element certified by the City Council on January 26, 2023, by Resolution No. 23-1357. This Sixth Amendment merely extends the term of the previously approved Agreement and is consistent with the General Plan, and there are no impacts peculiar to the parcel or unstudied impacts relevant to this Sixth Amendment.

I. On May 8, 2024, after conducting a duly noticed public hearing, the City Planning Commission recommended the City Council approve this Sixth Amendment, based on the following findings and determinations: this Sixth Amendment is consistent with the objectives, policies, general land uses and programs specified in the vested General Plan; is compatible with the uses authorized in and the vested regulations prescribed for the land use districts (C- R (Regional Commercial and PUD-MU (Planned Unit Development – Mixed Use)) in which the Property is located; is in conformity with public convenience, general welfare and good land use practices; will not be detrimental to the health, safety and general welfare of the City or the region surrounding the City; will not adversely affect the orderly development of property or the preservation of property values within the City; and will promote and encourage the development of the Project by providing a greater degree of certainty with respect thereto.

J. Thereafter, on June 4, 2024, the City Council held a duly noticed public hearing on this Sixth Amendment and made the same findings and determinations as the Planning Commission. On that same date, the City Council introduced the Ordinance. On June 18, 2024, the City Council approved this Sixth Amendment by adopting Ordinance _______.

NOW, THEREFORE, pursuant to the authority contained in California Government Code Sections 65864-65869.5, and in consideration of the mutual covenants and promises of the parties herein contained, the parties agree to amend the Agreement as follows:

1. Section 2.2 is hereby amended and restated as follows:

Ordinance No. 2282

2.2 Term. The term of this Agreement and Developer's rights and obligations hereunder shall terminate on January 1, 2025, unless the termination date is extended pursuant to Section 19.14 below.

2. Section 19.14 is added as follows.

19.14. Initial 6th Amendment Funding and Extension Upon Additional Funding.
(a) Within 10 business days of the date of recordation of this Agreement, Developer shall deposit the sum of $50,000 with City to be used by City for its costs associated with developing and processing a Master Plan (as defined in subsection (i) below) for the Stoneridge Mall (“Initial City Master Plan Costs”). (b) Between July 1, 2024 and December 31, 2024, City and Developer agree to cooperate and coordinate towards making progress on the master planning anticipated in the Stoneridge Mall Framework Components (as defined in subsection (i) below), including, but not limited to: (i) developing a scope of work, schedule and budget for the next phase of planning work, including commencing the process to select urban
design/architectural professionals to develop design and placemaking elements of the Framework Components; (ii)
initiating collaboration between Developer and Other Owners (as defined in subsection (i) below) regarding desired land uses, potential development scenarios for various properties, and addressing issues of shared concern, such as parking
requirements and parking management, interface of new or expanded uses with the existing shopping center, and shared infrastructure; and (iii) seeking qualified consultants to begin development of development standards or other master planning documents for the Stoneridge Mall.
(c) If, prior to December 1, 2024, City receives additional deposits totaling $150,000 from one or more of the Other Owners to supplement the Initial City Master Plan Costs (“Supplemental Master Plan Costs”), then the termination date of this Agreement shall be extended an additional 18 months to July 1, 2026, with this period to be used to further advance the efforts initiated during the initial six-month period. The City may, at its sole discretion, reduce this amount by up to $50,000, provided that so doing would, in the City’s determination, allow the planning to continue to proceed towards the development of the Master Plan.
(d) If City does not receive deposits for the Supplemental Master Plan Costs from the Other Owners by December 1, 2024, then Developer may elect thereafter to deposit with City, prior to December 31, 2024, the greater of (i) $100,000 or (2) the unfunded Supplemental Master Plan Costs (not to exceed
$150,000), in which case this Agreement shall be extended an

Ordinance No. 2282

additional 24 months to December 31, 2026, with this period to be used to further advance the efforts initiated during the initial six- month period. By November 1, 2026, the City Manager shall determine, in writing with notice to the Developer, whether Developer has worked in good faith to make material progress towards the Master Plan, including funding and/or working with the Other Owners to develop a plan to fund, the Master Plan. If the City Manager makes an affirmative determination regarding Developer’s actions, or fails to make any findings with regard to Developer’s actions, the Development Agreement shall be extended an additional two years to December 31, 2028.
(e) The City Manager may refer the duty to determine whether the Developer has made material progress toward the Master Plan to the City Council, provided the referral is made by November 1, 2026. Developer may appeal the City Manager’s findings to the City Council within ten (10) days of the date of notice of such findings, by providing notice of such appeal to the City Clerk by overnight courier or personal delivery.
(f) Upon referral or appeal, the City Council’s review of the matter shall be de novo and the City Council may consider evidence that was not presented to the City Manager. City shall use reasonable efforts to ensure that any findings to be made by the City Council are adopted by December 31, 2026. If such findings are not adopted by such date, the term of this Agreement will be automatically extended until the date such findings are adopted. (g) It is the intent of City and Developer to work with the Other Owners during any extension provided by subsections (c) and (d) above, to have Developer and/or the Other Owners provide additional funding towards Master Plan costs.
(h) If City does not receive deposits for the Supplemental Master Plan costs from either the Other Owners by December 1, 2024, or the Developer by December 31, 2024, this Agreement shall terminate on January 1, 2025. All funds provided by Developer to City for the Initial Master Plan Costs shall be retained by City. (i) While this Agreement remains in effect, Developer agrees to make good faith efforts to work with City and the Other Owners to develop and process for approval a Master Plan for the Shopping Center that furthers the goals of the Stoneridge Mall Framework Components approved by the City Council in Resolution No. 23- 1356, adopted on January 26, 2023, as those Components may be amended by the City with the reasonable consent of Developer (“Master Plan”). While Developer cannot control the actions of other owners of property at the entire Shopping Center as depicted in the First Amendment Section 1.b. and Exhibit A thereto (“Other Owners”), Developer’s good faith efforts shall

Ordinance No. 2282

include working with and attempting to persuade Other Owners to participate in developing and processing the Master Plan.

3. Except as expressly modified by this Sixth Amendment, City and Developer hereby ratify and confirm the terms and conditions of the Agreement which are fully incorporated herein by reference and shall continue in full force and effect.

4. This Sixth Amendment shall be effective as of the date the Agreement otherwise would have terminated and shall remain in effect until terminated. This Sixth Amendment may be executed in multiple counterparts, all of which taken together shall constitute one and the same instrument. This Sixth Amendment shall be duly recorded in the Official Records of Alameda County.

IN WITNESS WHEREOF, the parties have executed this Sixth Amendment on the date affixed by their signature.
"City"
CITY OF PLEASANTON, a Municipal
corporation of the State of California
By: _____________________________
Gerry Beaudin
City Manager
Dated Executed: __________________
Attest:
________________________________
Jocelyn Kwong
City Clerk
Approved as to Form:
________________________________
Daniel G. Sodergren
City Attorney
“Developer"
STONERIDGE PROPERTIES LLC, a
Delaware limited liability company, doing
business in California as STONERIDGE

ASSOCIATES, LLC
By: SIMON-MILLS II, L.L.C., a
Delaware limited liability company, its
Managing Member
By: _____________________________
Title: ____________________________
Date Executed: ____________________

Item #4

CITY COUNCIL AGENDA REPORT

June 18, 2024
Finance

TITLE: ADOPT A RESOLUTION APPROVING FISCAL YEAR 2024/25 INVESTMENT

POLICY AND GUIDELINES

SUMMARY
Pursuant to California Government Code Sections 53601 and 53635, the City’s Investment Policy and Guidelines must be submitted to the City Council annually for adoption. Various sections of the Investment Policy and Guidelines were updated last fiscal year to make the policy more comprehensive and to reflect the requirements in the California Government Code.

Last year's updates included proper interpretation of the latest changes to Government Code Section 53601 for FY 2024/25 relating to passthrough securities. This report satisfies the legal requirement that the City Council adopt an annual investment policy.

RECOMMENDATION
Adopt the attached resolution approving the Fiscal Year 2024/25 Investment Policy and Guidelines.

BACKGROUND
California Government Code Section 53646 provides for the City Council to adopt an annual investment policy. The proposed investment policy for FY 2024/25 and the adopting resolution are attached.

DISCUSSION
In addition to being legally required, an investment policy is important because it provides the necessary framework for a prudent investment program and helps fulfill the City's fiduciary responsibilities. Specifically, a formal investment policy is necessary to identify investment objectives, define risk tolerance, assign responsibility, and establish control over the investment process. Safekeeping of cash and investments is one of the most important responsibilities of the City Council, City Manager, and the Director of Finance. A well- developed investment policy serves as a working document that directs the investment activities of the staff and protects the government from potential losses stemming from unsuitable investment practices.

EQUITY AND SUSTAINABILITY
Not applicable, as this item is a routine administrative matter of City business.

OUTREACH
No outreach was conducted, as this item is a routine administrative matter of City business.

STRATEGIC PLAN ALIGNMENT
Insomuch as this item is a routine administrative matter, it is aligned with the ONE Pleasanton

strategic plan goal of Funding Our Future to support the City's financial health and sound fiscal policies.

FISCAL IMPACT
There is no direct fiscal impact associated with this item; however, a prudent investment management policy will ensure the City's available fiscal resources are managed and invested safely.

Prepared by: Submitted by: Approved by:

Chris Yi, Financial Services
Manager
Susan Hsieh, Director of Finance

Gerry Beaudin, City
Manager

Attachments:

1. Investment Policy Resolution

2. Investment Policy

Attachment 1
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PLEASANTON,

APPROVING THE INVESTMENT POLICY AND GUIDELINES OF THE CITY

OF PLEASANTON
WHEREAS, pursuant to California Government Code Sections 53601 and 53635, the City’s Investment Policy and Guidelines must be submitted to Council annually for adoption; and WHEREAS, staff presented to Council such a policy document for fiscal year 2024/25 on June 18, 2024; and
WHEREAS, staff is recommending approval of the policies and guidelines outlined in that document.

NOW, THEREFORE BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF PLEASANTON DOES RESOLVE, DECLARE, DETERMINE AND ORDER THE FOLLOWING:

Section 1. Adopt the Investment Policy and Guidelines for fiscal year 2024/25 as reflected in Exhibit A.

Section 2. City Clerk shall certify to the passage of this resolution and enter it into the book of original resolutions.

PASSED, APPROVED AND ADOPTED by the City Council of the City of Pleasanton at a regular meeting held on June 18, 2024.

I, Jocelyn Kwong, City Clerk of the City of Pleasanton, California, certify that the foregoing resolution was adopted by the City Council at a regular meeting held on June 18, 2024 by the following vote:

Ayes:

Noes:

Absent:

Abstain:
_____________________________
Jocelyn Kwong, City Clerk
APPROVED AS TO FORM:
___________________________
Daniel G. Sodergren, City Attorney

ATTACHMENT 2
1 City of Pleasanton

INVESTMENT POLICY AND GUIDELINES
Adopted June 18, 2024
(For FY 2024/25)
POLICY
The purpose of this investment policy is to identify various policies and procedures that will foster a prudent and systematic investment program designed to seek the City of Pleasanton’s (“City”) objectives of safety, liquidity and return on investment through a diversified investment portfolio. This policy also serves to organize and formalize the City’s investment-related activities, while complying with all applicable statutes governing the investment of public funds. This policy is written to incorporate industry best practices and recommendations from sources such as the Government Finance Officers Association (GFOA), California Municipal Treasurers Association (CMTA), California Debt and Investment Advisory Commission (CDIAC) and the Association of Public Treasurers (APT).

SCOPE
This investment policy applies to all financial assets of the City. These funds are accounted for in the City's Annual Comprehensive Financial Report and include:
▪General Fund
▪Enterprise Funds
▪Internal Service Funds
▪Capital Projects Funds
▪Special Revenue Funds
▪Private-Purpose Trust Funds
▪Agency Funds
▪Debt Service Funds
Proceeds of debt issuance shall be invested in accordance with the City’s general investment philosophy as set forth in this policy; however, such proceeds are to be invested pursuant to the permitted investment provisions of their specific bond indentures.

The City’s Section 115 Pension Trust Fund and the City’s other post-employment benefit trusts are to be invested pursuant to their own investment policies.

POOLING OF FUNDS
Except for cash in certain restricted and special funds, the City will consolidate cash and reserve balances from all funds to maximize investment earnings and to increase efficiencies with regard to investment pricing, safekeeping and administration. Investment income will be allocated to the various funds based on their respective participation and in accordance with generally accepted accounting principles.

ATTACHMENT 2
2 PRUDENCE
Pursuant to California Government Code, Section 53600.3, all persons authorized to make investment decisions on behalf of the City are trustees and therefore fiduciaries subject to the Prudent Investor Standard:
“…all governing bodies of local agencies or persons authorized to make investment decisions on behalf of those local agencies investing public funds pursuant to this chapter are trustees and therefore fiduciaries subject to the prudent investor standard. When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the Agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the Agency. Within the limitations of this section and considering individual investments as part of an overall strategy, investments may be acquired as authorized by law.” Investment officers acting in accordance with written procedures and the investment policy and exercising due diligence shall be relieved of personal responsibility for an individual 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.

OBJECTIVES
The primary objectives, in priority order, of the City's investment program shall be:
a. Safety: Safety of principal is the foremost objective of the investment program.

Investments of the City shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. To attain this objective, the City will diversify its investments by investing funds among a variety of securities with independent returns.
b. Liquidity: The City'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: The City's investment portfolio shall be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the City's investment risk constraints and the cash flow characteristics of the portfolio.

DELEGATION OF AUTHORITY

ATTACHMENT 2
3 Authority to manage the City's investment program is derived from Sections 41006 and 53600 et seq. of the Government Code and Chapter 2.16 of the Pleasanton Municipal Code. Management responsibility for the investment program is delegated by the City Council and City Manager to the Director of Finance.

The Director of Finance will be responsible for all transactions undertaken and will establish a system of procedures and controls to regulate the activities of subordinate officials and employees. Such procedures will include explicit delegation of authority to persons responsible for investment transactions. No person may engage in an investment transaction except as provided under the terms of this policy and the procedures established by the Director of Finance.

The City may engage the services of professional investment managers (Advisers) at the election and further approval of the City Council at the recommendation of the City Manager and Director of Finance. The Adviser shall be registered under the Investment Advisers Act of 1940. The Adviser may be granted discretion to purchase and sell investment securities in accordance with this investment policy. The Adviser shall follow this Investment Policy, written internal controls and other written instructions as provided by the City. Such delegation is subject to City review and overriding discretion which will be exercised as needed.

ETHICS AND CONFLICTS OF INTEREST
All participants in the investment process shall act as custodians of the public trust.

Investment officials shall recognize that the investment portfolio is subject to public review and evaluation. Officers and employees involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the investment program, or which could impair their ability to make impartial investment decisions.

Employees and investment officials shall disclose to the City Manager any material interests in financial institutions with which they conduct business, and they shall further disclose any large personal financial/investment positions that could be related to the performance of the investment portfolio. Employees and officers shall refrain from undertaking any personal investment transactions with the same individual with whom business is conducted on behalf of the City. employees and investment officials who manage the investment of public funds must file an annual Statement of Economic Interests.

AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS
To the extent practicable, the Director of Finance shall endeavor to complete investment transactions using a competitive bid process whenever possible. The Director of Finance will determine which financial institutions are authorized to provide investment services to the City. It shall be the City’s policy to purchase securities only from authorized institutions and firms. The Director of Finance will maintain a list of financial institutions

ATTACHMENT 2
4 authorized to provide investment services. In addition, a list will also be maintained of approved security broker/dealers selected by credit worthiness, these may include "primary" dealers or regional dealers that qualify under Security & Exchange Commission Rule 15C3-1 (uniform net capital rule). All broker investment transactions require the approval of authorized City staff. No public deposit shall be made except in a qualified public depository as established by state laws, and 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.

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
All financial institutions and broker/dealers who desire to become qualified bidders for investment transactions must supply the Director of Finance with the following: audited financial statements, completed broker/dealer questionnaire, and certification of having reviewed California Government Code, Section 53600 et seq. and read the City's investment policy.

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.

ATTACHMENT 2
5 AUTHORIZED AND SUITABLE INVESTMENTS
The City’s investments are governed by California Government Code, Sections 53600 et seq. Within the investments permitted by the Code, 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 requirements 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.
a. Time Deposits
Fully-insured (FDIC) or fully collateralized non-negotiable certificates of deposits (CDs) in financial institutions located in California. All time deposits must be collateralized in accordance with California Government Code sections 53650 et. seq. The City, at its discretion, may waive the collateralization requirements for any portion of the deposit that is covered by federal insurance. A maximum of 30% of the City’s portfolio may be invested in this category. The maximum maturity may not exceed five (5) years.
b. Negotiable Certificates of Deposit (NCDs)
Negotiable C/Ds issued by a nationally or state-chartered bank, a savings association or a federal association, a state or federal credit union, or by a federally licensed or state-licensed branch of a foreign bank. The amount of the NCD insured up to the FDIC limit does not require any credit ratings. 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 nationally recognized statistical rating organization (NRSRO); or long-term obligations rated in a rating category of “A” or its equivalent or better by at least one NRSRO. The aggregate investment in Negotiable C/Ds shall not exceed 30% of the City’s total portfolio.
c. Banker’s Acceptances
Banker’s Acceptances shall not to exceed 180 days maturity from date of purchase. No more than 5% of the City’s total portfolio shall be invested in banker’s

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6 acceptances of any one issuer and the aggregate investment in banker’s acceptances shall not exceed 30% of the City’s total portfolio. Banker’s Acceptances 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 debt obligations which are rated in a rating category of “A” or its equivalent or better by at least one NRSRO.
d.Obligations of the United States Treasury
U.S. Treasury bills, notes, bonds or certificates of indebtedness, and other government obligations for which the faith and credit of the United States are pledged for the payment of principal and interest. There is no limitation as to the percentage of the City’s portfolio that may be invested in this category. Maximum maturity may not exceed five years.
e. Securities of U.S. Government Agencies
Federal agency or United States government-sponsored enterprise obligations, participations, or other instruments, including those issued by or fully guaranteed as to principal and interest by federal agencies or United States government- sponsored enterprises. There is no limitation as to the percentage of the City’s portfolio that may be invested in this category, provided that:
•No more than 30% of the portfolio may be invested in any single Agency/GSE issuer
•The maximum maturity does not exceed five (5) years
•The maximum percent of agency callable securities in the portfolio will be 20%
f. Commercial Paper
Commercial paper securities issued by an entity that meets all of the following conditions in either paragraph (a) or (b) and additional requirements below:
a. Securities issued by corporations:
(i) A corporation organized and operating in the United States with assets more than $500 million
(ii) The securities are rated “A-1” or its equivalent or better by at least one NRSRO
(iii) 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:

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7 (i) The issuer is organized within the United States as a special purpose corporation, trust, or limited liability company (ii) The securities must have program-wide credit enhancements including, but not limited to, overcollateralization, letters of credit, or a surety bond
(iii) 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 is permitted
•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
g.State of California Local Agency Investment Fund (LAIF) The Local Agency Investment Fund was established by the State to enable local agency treasurers to place funds in a pool for investment (California Government Code Section 16429.1 et seq.). The City uses this investment vehicle for short- term liquidity, funds are available on demand and interest is paid quarterly. The City may invest up to the maximum permitted by LAIF.
h. Municipal Securities That Are California State and Local Agency Obligations
Obligations of the State of California or any local agency within the state, provided that such obligations are rated in a rating category of A or its equivalent or better by at least one NRSRO. No more than 5% of the City’s total portfolio shall be invested in any one issuer in this category and the aggregate investment in categories (h. & i.) shall not exceed 30% of the City’s total portfolio. i. Municipal Securities from Other States
Registered treasury notes or bonds of any of the other 49 United 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 United States, in addition to California, provided that such obligations are rated in a rating category of A or its equivalent or better by at least one NRSRO. No more than 5% of the City’s total portfolio shall be invested in any one issuer in this category and the aggregate investment in categories (h. & i.) shall not exceed 30% of the City’s total portfolio. j. Medium-term notes

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8 Medium-term notes, defined as all corporate and depository institution debt securities with a maximum remaining maturity of five years or less, issued by corporations organized and operating in the United States or by depository institutions licensed by the United States or any state and operating in the United States. Purchases are limited to securities rated in a rating category of “A” or its equivalent or better by one NRSRO. The aggregate investment in Medium-term corporate notes shall not exceed 30% of the City’s total portfolio, and no more than 5% of the portfolio may be invested in any single issuer. k. Repurchase and Reverse Repurchase Agreements
Repurchase Agreements collateralized only by securities of the U.S. Government or its agencies. The purchase securities shall have a minimum market value of 102% of the dollar value of funds borrowed and a term not to exceed one year.

The aggregate investment in repurchase agreements shall not exceed 15% of the City’s total portfolio. Securities used as collateral for Repurchase Agreements will be delivered to an acceptable third-party custodian. 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).
l. Money Market and Mutual Funds
Money market and mutual funds that are registered with the Securities and Exchange Commission under the Investment Company Act of 1940, provided that:
b. Mutual Funds that invest in the securities and obligations as authorized under California Government Code, Section 53601 (a) to (k) and (m) to (q) inclusive and that meet either of the following criteria:
(i) Attained the highest ranking or the highest letter and numerical rating provided by not less than two (2) NRSROs; or
(ii) Have retained an investment adviser registered or exempt from registration with the Securities and Exchange Commission with not less than five years’ experience investing in the securities and obligations authorized by California Government Code, Section 53601 and with assets under management in excess of $500 million. •No more than 10% of the total portfolio may be invested in shares of any one mutual fund.
c. 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:

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9 (i) Have attained the highest ranking or the highest letter and numerical rating provided by not less than two (2) NRSROs; or
(ii) 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. •No more than 20% of the total portfolio may be invested in the shares of any one Money Market Mutual Fund.
d. No more than 20% of the total portfolio may be invested in these securities. m. Managed Portfolio for Pension Liabilities
City Council authorized setting up a Section 115 Pension Trust Fund (Trust Fund), The Trust Fund assets will be managed by an external manager and the investment policy related to the trust will be a separate document that is approved by the City Council.
n. California Asset Management Program (CAMP)
California Asset Management Program "CAMP" is a California Joint Powers Authority ("JPA") established in 1989 to provide California public agencies with professional investment services. The CAMP Pool is a permitted investment for all local agencies under California Government Code Section 53601(p). The aggregate investment in CAMP shall not exceed 30% of the City’s investment portfolio.
o. Supranational Organizations Securities
United States dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by IBRD, IFC, or IADB, with a maximum remaining maturity of five years or less and eligible for purchase and sale in the United States. Purchases are limited to securities rated in a rating category of “AA” or its equivalent or better by an NRSRO. The aggregate investment in Supranational Organizations Securities shall not exceed 30% of the City’s investment portfolio. No more than 10% of the portfolio may be invested in any single issuer. Supranational Organizations Securities are permitted investment under California Government Code 53601(q).
p. 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.

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10 q. Asset-Backed, Mortgage-Backed, Mortgage Pass-Through Securities, and Collateralized Mortgage Obligations From Issuers Not Defined in Paragraphs d. and e. of the Authorized and Suitable Investments Section of this Policy:

The securities shall be rated in a rating category of “AA” or its equivalent or better by one 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 Asset- Backed or Commercial Mortgage security issuer. The maximum legal final maturity does not exceed five (5) years.

PROHIBITED INVESTMENT VEHICLES AND PRACTICES
•State law notwithstanding, any investments not specifically described herein are prohibited, including, but not limited to futures and options. •In accordance with Government Code, Section 53601.6, investment in inverse floaters, range notes, or mortgage derived interest-only strips is prohibited. •Investment in any security that could result in a zero interest accrual if held to maturity is prohibited. 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.
•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 Director of Finance shall develop a questionnaire which will answer the following 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.

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11 •A description of who may invest in the program, how often, and 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?

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

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

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

SAFEKEEPING AND CUSTODY
All security transactions entered into by the City shall be conducted on a delivery-versus- payment (DVP) basis.

To protect against potential losses due to failure of individual securities dealers, and to enhance access to securities, interest payments and maturity proceeds, all cash and securities in the City’s portfolio shall be held in safekeeping in the City’s name by a third party custodian, acting as agent for the City under the terms of a custody agreement executed by the bank and the City. All investment transactions will require a safekeeping receipt or acknowledgment generated from the trade. A monthly report will be received

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12 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.

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 And Suitable 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:
a. Any actions taken related to the downgrade will be communicated to the Director of Finance in a timely manner.
b. 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:

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13 •The City will maintain a minimum of six (6) 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.

TRUST AGREEMENTS
The City shall direct the investment activities of trustees. Such direction shall be in keeping with the terms and conditions of its bond agreements, applicable law and policies set forth in this document.

REVIEW OF THE INVESTMENT PORTFOLIO
The Director of Finance shall periodically, but no less than quarterly, review the portfolio to identify investments that do not comply with this investment policy and establish protocols for reporting major and critical incidences of noncompliance to the City Council.

MAXIMUM MATURITIES
To the extent possible, the City will attempt to match its investments with anticipated cash flow requirements. Because of inherent difficulties in accurately forecasting cash flow requirements, a portion of the portfolio should be continuously invested in readily available funds. Where this policy does not specify a maximum remaining maturity at the time of the investment, no investment shall be made in any security that at the time of the investment has a term remaining to maturity in excess of five (5) years from the date of trade settlement.

The City will not invest in securities maturing more than five (5) years from the date of trade settlement, unless the City Council has by resolution granted authority to make such an investment either specifically or as a part of an investment program approved by the City Council no less than three months prior to the investment.

The City may invest proceeds of bond issuances or certificates of participation for a term exceeding five years, provided the City Council authorizes such investments as part of the legal documents.

INTERNAL CONTROLS
The Director of Finance shall establish an annual process of independent review by an external auditor to prevent loss of funds arising from fraud, theft, staff errors and irregularities, misrepresentations by third parties, misuse, or imprudent actions by staff.

This review will provide internal control by assuring compliance with policies and procedures.

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14 PERFORMANCE STANDARDS
The investment portfolio shall be designed to attain a market-average rate of return throughout budgetary and economic cycles, taking into account the City’s risk constraints, the cash flow characteristics of the portfolio, and state and local laws, ordinances or resolutions that restrict investments.

The Director of Finance shall monitor and evaluate the portfolio’s performance relative to the chosen market benchmark(s), which will be included in the Director of Finance’s quarterly report. The Director of Finance shall select an appropriate, readily available index to use as a market benchmark.

REPORTING
Monthly Reports
Monthly transaction reports will be submitted by the Director of Finance, via the City Manager, to the City Council within 60 days of the end of the reporting period in accordance with California Government Code Section 53607.

Quarterly Reports
The Director of Finance will submit a quarterly report to the City Council on the status of the City's investment portfolio no later than 45 days after the end of each month. This report shall include the types of investments, the amount of money invested with various institutions, purchase and maturity dates, and yield on investments. The Director of Finance will certify that the investment portfolio is in compliance with the investment policy and that it will meet cash flow needs for the next six (6) months.

INVESTMENT POLICY ADOPTION
The City's investment policy will be submitted annually to the City Council for adoption by the end of the fiscal year, to ensure its consistency with the overall objectives of preservation of principal, liquidity and return, and its relevance to current law and financial and economic trends.

Any recommended modifications or amendments shall be presented by staff to the Governing Body for its consideration and adoption.

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15 Glossary of Investment Terms
AGENCIES. Shorthand market terminology for any obligation issued by a government- sponsored entity (GSE), or a federally related institution. Most obligations of GSEs are not guaranteed by the full faith and credit of the US government. Examples are:

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

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

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

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

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

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

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

ASKED. The price at which a seller offers to sell a security.

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.

BID. The price at which a buyer offers to buy a security.

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 his 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 since an issuer issues securities, it will likely call its current securities and reissue them at a lower rate of interest. Callable securities have reinvestment

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16 risk as the investor may receive its principal back when interest rates are lower than when the investment was initially made.

CERTIFICATE OF DEPOSIT (CD). A time deposit with a specific maturity evidenced by a certificate. Large denomination CDs may be marketable.

CERTIFICATE OF DEPOSIT ACCOUNT REGISTRY SYSTEM (CDARS). A private placement service that allows local agencies to purchase more than $250,000 in CDs from a single financial institution (must be a participating institution of CDARS) while still maintaining FDIC insurance coverage. CDARS is currently the only entity providing this service. CDARS facilitates the trading of deposits between the California institution and other participating institutions in amounts that are less than $250,000 each, so that FDIC coverage is maintained.

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

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

COMMERCIAL PAPER. The short-term unsecured debt of corporations.

COST YIELD. The annual income from an investment divided by the purchase cost.

Because it does not give effect to premiums and discounts which may have been included in the purchase cost, it is an incomplete measure of return.

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.

CURRENT YIELD. The annual income from an investment divided by the current market value. Since the mathematical calculation relies on the current market value rather than the investor’s cost, current yield is unrelated to the actual return the investor will earn if the security is held to maturity.

DEALER. A dealer acts as a principal in security transactions, selling securities from and buying securities for his 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

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17 securities, which have fixed coupons, trade at a discount when the coupon rate is lower than the current market rate for securities of that maturity and/or quality.

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

DURATION. The weighted average time to maturity of a bond where the weights are the present values of the future cash flows. Duration measures the price sensitivity of a bond to changes in interest rates. (See modified duration).

FEDERAL FUNDS RATE. The rate of interest charged by banks for short-term loans to other banks. The Federal Reserve Bank through open-market operations establishes it.

FEDERAL OPEN MARKET COMMITTEE. A committee of the Federal Reserve Board that establishes monetary policy and executes it through temporary and permanent changes to the supply of bank reserves.

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.

MARKING TO MARKET. The process of posting current market values for securities in a portfolio.

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.

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18 MORTGAGE PASS-THROUGH SECURITIES. A securitized participation in the interest and principal cash flows from a specified pool of mortgages. Principal and interest payments made on the mortgages are passed through to the holder of the security.

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

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

NATIONALLY RECOGNIZED STATISTICAL RATING ORGANIZATION (NRSRO).

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

NEGOTIABLE 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 and are payable upon order to the bearer or initial depositor (investor).

PREMIUM. The difference between the par value of a bond and the cost of the bond, when the cost is above par.

PREPAYMENT SPEED. A measure of how quickly principal is repaid to investors in mortgage securities.

PREPAYMENT WINDOW. The time period over which principal repayments will be received on mortgage securities at a specified prepayment speed.

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.”
REALIZED YIELD. The change in value of the portfolio due to interest received and interest earned and realized gains and losses. It does not give effect to changes in market value on securities, which have not been sold from the portfolio.

REGIONAL DEALER. A financial intermediary that buys and sells securities for the benefit of its customers without maintaining substantial inventories of securities and that is not a primary dealer.

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19 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.

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 Secured Overnight Financing Rate (SOFR). 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.

VOLATILITY. The rate at which security prices change with changes in general economic conditions or the general level of interest rates.

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

Item #5

CITY COUNCIL AGENDA REPORT

June 18, 2024
Finance

TITLE: APPROVE FISCAL YEAR 2024/25 RECURRING PURCHASE ORDER

AGREEMENTS

SUMMARY
The City’s Purchasing Policy establishes the types and values of goods and services requiring City Council approval. The Recurring Purchase Order Agreements (RPOAs) included in this report require City Council approval due to their cumulative values in a fiscal year exceeding $100,000. If approved, staff will be authorized to issue RPOAs to the vendors included in the list of recommended recurring purchase orders for FY 2024/25 provided as Attachment 1.

RECOMMENDATION
Authorize the issuance of RPOAs to vendors and amounts up to those listed on Attachment 1 for FY 2024/25.

BACKGROUND
The City’s Purchasing Policy establishes requirements for vendor selection based on the type and value of the goods or services to be purchased. For purchases of goods and ancillary services less than $100,000, the City Manager is authorized to approve selection of the qualified low bidder resulting from a request for bids process. If the purchase is in excess of $100,000 City Council approval is required.

DISCUSSION
As part of the City’s annual purchasing process, individual vendors are provided with RPOAs authorizing departments to make numerous as-needed purchases on a regular basis throughout the year. As an example, a firm operating in accordance with a RPOA for office supplies may have many individual sales with the City, all of which are valued at less than a few hundred dollars; however, the overall annual purchase may be equal to or greater than $100,000.

In reviewing this year’s listing of RPOAs, staff identified a number of vendors that, based on previous activity, will provide products that collectively may be in excess of $100,000. As a result, staff determined that it is appropriate to forward these to the City Council for approval prior to issuing a RPOA for FY 2024/25. As indicated in Attachment 1, some RPOAs are in the middle of a multi-year agreement; however, the City Council is asked to approve only FY 2024/25 RPOA requests.

Competitive Bidding
All the vendors listed on Attachment 1 have either been selected through the City’s competitive bidding process or have been declared sole source vendors. If a vendor is designated a sole source vendor, an explanation is provided. Fiscal Year 2024/25 competitive bids for RPOAs for $100,000 or more have been completed. If additional RPOAs for $100,000 or more are

identified during FY 2024/25, the requesting department will bring those to the City Council for approval. Staff recommends approval of the RPOAs listed in Attachment 1.

EQUITY AND SUSTAINABILITY
Not applicable, as this item is a routine administrative matter of City business.

OUTREACH
No outreach was conducted, as this item is a routine administrative matter of City business.

STRATEGIC PLAN ALIGNMENT
Not applicable, as this item is a routine administrative matter.

FISCAL IMPACT
No significant fiscal impact results from this action, as these purchase orders are for budgeted items included in the FY 2024/25 Operating Budget. Most of the RPOAs included in this report are for purchasing or procurement of services or supplies on an as-needed basis. It is anticipated for many of these RPOAs, actual spending will be less than the not-to-exceed amounts. As such, staff may encumber amounts less than the maximum amount indicated in the RPOAs depending on anticipated requirements for goods and services from each vendor.

Staff recognizes that these RPOAs encumber funds at a time when the City is implementing cost reductions and related cost containment strategies. At the same time, these contracts support the operations and delivery of ongoing programs and services for the entire CIty organization. With that, staff intends to utilize these contracts for necessary and essential tasks.

Prepared by: Submitted by: Approved by:

Dawn DeMarcus, Senior
Budget and Finance Analyst
Susan Hsieh, Director of Finance

Gerry Beaudin, City
Manager

Attachments:

1. Recurring (Open) Purchase Order Recommendations FY 2024/25

ATTACHMENT 1
RECURRING (OPEN) PURCHASE ORDER RECOMMENDATIONS FY 2024/25 No. Vendor Name Department Est. Annual
Value
Product/Service Explanation
1 Baker & Taylor Library &
Recreation
320,000$ Books, audio books, DVD and
CD purchases, outsourcing
services, and distribution
Sole Source for FY2024/25, the only provider of a proprietary collection development software application to streamline materials acquisition and deaccessioning and to exam library collections with Evidence-based Selection Planning (ESP) and Diversity, Equity and Inclusion (DEI) tools. Baker & Taylor is one of the largest distributors of physical and digital books. 2 Tri-Valley Community TV City Manager 232,735$ TV Broadcasting and production service to the public
Sole Source for FY2024/25, TV30 annual subsidy and Public, Education, and Governmental Access Channels (PEG)
contribution.
3 Core & Main LP Public Works 425,000$ Utility Infrastructure Supplies One of four vendors (Core & Main LP, Pace Supply, TW Associates LLC dba Misco Water and Griswold Industries dba Cla Val Co.) that provides as-needed utility infrastructure materials such as larger diameter piping, fittings, couplings that are typically not available at general supply store. This vendor provides a majority of purchases due to their shortest lead time in instances of emergency repairs to support Repair and Replacement (R&R), City's water, sewer, and storm drain system.
4 Hach Company Public Works 175,000$ Water quality laboratory testing supplies and equipment
One of four vendors (Hach Co., Fisher Scientific, Idexx Distributions, and EMD Millipore) that provides testing standards and chemicals required by California Environmental Laboratory Accreditation Program (ELAP), repair parts and updates to existing analyzers and other miscellaneous laboratory equipment/tools. 5 Valley Oil Company Public Works 800,000$ Unleaded and Diesel fuel Sole Source for FY2024/25, Prime supplier for more than 25 years with established emergency agreement that allows a reliable fuel supply in the event of an emergency. Due to the familiarity of City Infrastructure, Valley Oil, Co. has outstanding safety records and specifically equipped rigs that allow servicing City's outlying above- ground fuel tanks.
6 Site One Landscape
Supply
Public Works $150,000 Materials for repairing and
maintaining parks, medians and
facilities irrigation systems
Sole Source for FY2024/25, Site One is the only vendor in Northern California that can supply repair parts and technical support for the City's Rain Master Irrigation controllers and weather station.

Rain Master is the City's standard system for irrigation controllers in park sites.
7 Enterprise FM Public Works $300,000 Leased City Fleet Vehicles Sole Source for FY2024/25, City Equipment is currently outfitted with Enterprise vehicle. Conversion out of Enterprise Fleet would be a financial burden with great time and resources needed. 8 Lincoln Aquatics Public Works $150,000 Pool chemicals and supplies for Dolores Bengtson Aquatic
Center
Sole Source for FY2024/25, The chemical tanks in the pump room were supplied and owned by Univar, which is Lincoln Aquatica' agent. The City is obligated to only have them filled by Lincoln Aquatics.
9 Tyler Technologies Finance $204,101 Annual Software maintenance for ERP System
Sole Source for FY2024/25, Tyler Technologies provides the proprietary software program and existing maintenance and support agreement.
10 Dell Computer Systems Information
Technology
$200,000 Provider of computer equipment
(PC's, printers, laptops, servers,
and datacenter infrastructure)
One of seven (Dell, Softchoice, Software Hardware Integration (SHI), CDW-G, GOVCONN, Southern Computer Warehouse and
Insight) vendors that specialized in the reselling of printers, software, network equipment, peripherals, and misc., hardware components to government sector.

RECURRING (OPEN) PURCHASE ORDER RECOMMENDATIONS FY 2024/25 No. Vendor Name Department Est. Annual
Value
Product/Service Explanation
11 CDW Government Information
Technology
$150,000 Software, Maintenance and As-
Needed computer equipment
One of seven (Dell, Softchoice, SHI, CDW-G, GOVCONN, Southern Computer Warehouse and Insight) vendors that specialized in the reselling of printers, software, network equipment, peripherals, and misc., hardware components to government sector.
12 Comcast Information
Technology
$180,000 Internet Services, Wide-Area-
Network circuits, broadband
and cable tv
Sole Source for FY2024/25, Comcast, under CalNet Contract, is the local provider of internet, broadband and cable tv. 13 Software Hardware
Integration (SHI)
Information
Technology
$150,000 Software, Maintenance and As-
Needed computer equipment
One of seven (Dell, Softchoice, SHI, CDW-G, GOVCONN, Southern Computer Warehouse and Insight) vendors that specialized in the reselling of printers, software, network equipment, peripherals, and misc., hardware components to government sector.
14 Softchoice Corporation Information
Technology
$250,000 Software, Maintenance and As-
Needed computer equipment
One of seven (Dell, Softchoice, SHI, CDW-G, GOVCONN, Southern Computer Warehouse and Insight) vendors that specialized in the reselling of printers, software, network equipment, peripherals, and misc., hardware components to government sector.
15 Southern Computer
Warehouse
Information
Technology
$125,000 Software, Maintenance and As-
Needed computer equipment
One of seven (Dell, Softchoice, SHI, CDW-G, GOVCONN, Southern Computer Warehouse and Insight) vendors that specialized in the reselling of printers, software, network equipment, peripherals, and misc., hardware components to government sector.
16 ENT Networks, Inc Information
Technology
150,000.00 Contracted bench technicians
to assist with first level helpdesk
tickets and PC replacements
Sole Source for FY2024/25, ENT Networks provides last minute dispatching of services of technicians who have already cleared DOJ background check, a local business able to source
technicians the same day under 15 minutes, who have existing network logins.

Item #6

CITY COUNCIL AGENDA REPORT

June 18, 2024
Finance

TITLE: ADOPT A RESOLUTION APPROVING THE FISCAL YEAR 2024/25

APPROPRIATIONS LIMIT

SUMMARY
Pursuant to Article XIIIB of the State Constitution, the City is required to annually adopt its appropriations limit (Limit), also known as the spending limit, for the coming fiscal year (FY 2024/25) for those appropriations that are funded primarily from tax revenues. The Limit is adjusted each year pursuant to Proposition 111 based on both an inflation factor and population changes. For FY 2024/25 the Limit was calculated based on the percentage change in the county’s population and per capita personal income. The Limit for FY 2024/25 is $842,481,359. The City’s FY 2024/25 budget appropriations subject to the Limit total $128,115,422 such that the City will not exceed its Limit for FY 2024/25.

RECOMMENDATION
Adopt a resolution approving the Fiscal Year 2024/25 appropriations limit

BACKGROUND
In 1979, the voters passed Proposition 4 (Prop 4) with the intent of limiting government spending. Prop 4 accomplishes this by limiting an agency's ability to keep and spend its tax revenue based on its base year FY1978/79 spending, adjusted annually by an inflation factor and the agency's increase in population. Due to some difficulties with the restrictions of Prop 4, revisions to the adjustment formulas were made through Proposition 111, which was adopted by the voters in June 1990. Proposition 111 also established FY 1986/87 as the new base year.

DISCUSSION
The factors used to compute the Prop 4 limits are: (1) either the percentage change in California per capita personal income or the percentage change in the local assessment roll from the preceding year due to the addition of local nonresidential construction in the city, and (2) either the city's own population growth or the population growth of the entire county.

The State Department of Finance annually provides the California per capita personal income change percentage for purposes of calculating the Prop 4 Spending Limit. For FY 2024/25, California per capita personal income increased by 3.62 percent, which exceeds the 0.01 percentage change in Pleasanton's local assessment roll due to non-residential construction provided by the Alameda County Assessor’s office. The City’s population decrease was 1.17 percent while the Alameda County's population decreased by 0.54 percent; therefore, the calculation for the FY 2024/25 Limit is based on the percentage change in California per capita personal income and the county’s population decrease. Attachment 2 details the calculation of the Limit for FY 2024/25 of $842,481,359.

EQUITY AND SUSTAINABILITY
Not applicable, as this item is a routine administrative matter of City business.

OUTREACH
No outreach was conducted, as this item is a routine administrative matter of City business.

STRATEGIC PLAN ALIGNMENT
Not applicable, as this item is a routine administrative matter.

FISCAL IMPACT
There is no fiscal impact based on the FY 2024/25 appropriations limit calculation. The FY 2024/25 appropriations subject to the limit based on the mid-term budget are estimated to be approximately $128,115,422; therefore, the City’s Appropriations Limit of $842,481,359 is not anticipated to be reached or exceeded in FY 2024/25.

Prepared by: Submitted by: Approved by:

Chris Yi, Financial Services
Manager
Susan Hsieh, Director of Finance

Gerry Beaudin, City
Manager

Attachments:

1. Resolution

2. Appropriations Limit

RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PLEASANTON, ADOPTING THE FISCAL YEAR 2024/25 APPROPRIATIONS LIMIT
WHEREAS, Article XIIIB of the State of California Constitution (Proposition 4 on the November 6, 1979 ballot) requires that each year the governing body of each local agency establish its appropriations limit for the following year; and WHEREAS, Proposition 111, passed by the voters in June 1990, expands the choices for making annual adjustments to the appropriations limit based on various growth factors; and WHEREAS, the City Council has determined that the growth factors of (1) the percentage change in the county’s population, and (2) the percentage change in California per capita personal income will be used to establish the FY 2024/25 appropriation limit; and WHEREAS, selecting these growth factors will result in a new limit for FY 2024/25 of $842,481,359.

NOW, THEREFORE BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF PLEASANTON DOES RESOLVE, DECLARE, DETERMINE AND ORDER THE FOLLOWING:

Section 1: The Proposition 111 growth factors selected for fiscal year 2024/25 for determining the City’s Proposition 4 appropriations limit are (1) the percentage change in the county’s population and, (2) the percentage change in California per capita personal income.

Section 2: The appropriation limit for fiscal year 2024/25 is $842,481,359.

Section 3: This resolution shall become effective immediately upon its passage and adoption.

Section 4: The City Clerk shall certify to the passage of this resolution and enter it into the book of original resolutions.

PASSED, APPROVED AND ADOPTED by the City Council of the City of Pleasanton at a regular meeting held on June 18, 2024.

I, Jocelyn Kwong, City Clerk of the City of Pleasanton, California, certify that the foregoing resolution was adopted by the City Council at a regular meeting held on the 18th of June, 2024 by the following vote:

Ayes:

Noes:

Absent:

Abstain:
_____________________________
Jocelyn Kwong, City Clerk
APPROVED AS TO FORM:
___________________________
Daniel G. Sodergren, City Attorney
Attachment 1

Attachment 2
2023-24 2024-25
GROWTH FACTORS A & B: (Use the greater of each)
(1) (A) CITY POPULATION GROWTH FACTOR (%) -1.37% -1.17% OR
COUNTY POPULATION GROWTH FACTOR (%) -0.47% -0.54%
(1) (B) CHANGE IN NON-RESIDENTIAL
CONSTRUCTION AV ($) $34,624,186 $218,000
ANNUAL INCREASE IN ALL CITY AV ($) $1,790,171,610 $1,667,182,926 % CHANGE DUE TO NON-RESIDENTIAL
CONSTRUCTION 1.93% 0.01%
OR

PER CAPITA PERSONAL INCOME
% CHANGE OVER PRIOR YEAR 4.44% 3.62%
NEW FACTOR TO APPLY TO PROP 4 LIMIT
(County pop. factor X per capita personal income % change) 1.039 1.031 (City pop. factor X per capita personal income % change) PRIOR GANN LIMIT $817,463,288
CURRENT YEAR GANN LIMIT $842,481,359
(1) Use the greater of the two percentage changes.

FY 2024/25 APPROPRIATIONS LIMIT

Item #7

CITY COUNCIL AGENDA REPORT

June 18, 2024
Finance

TITLE: APPROVE AN AGREEMENT WITH CHANDLER ASSET MANAGEMENT, INC.

FOR INVESTMENT MANAGEMENT SERVICES FOR THREE YEARS FROM JULY 1, 2024 THROUGH JUNE 30, 2027 WITH THE NOT-TO-EXCEED AGGREGATE TOTAL OF $218,000 OVER A THREE-YEAR TERM WITH AN

OPTION FOR TWO ADDITIONAL YEARS

SUMMARY
Staff recommends the City engage Chandler Asset Management to provide investment management and advisory services. The goal of external management is to maximize the return on investments while minimizing risk and prioritizing safety of principal and liquidity.

Professional investment management of public funds is a best practice which provides multiple benefits to the City, including day-to-day monitoring of investments within the portfolio; daily analysis of available market opportunities; re-balancing of the portfolio investments to take advantage of higher interest investment options when available; daily credit monitoring of investment instruments to safeguard the City's funds; security selection; and competitive shopping of investments to obtain the best execution of trades.

Compliance will be monitored daily in accordance with the City’s investment policy and Government Code and reported as part of the monthly reporting package. Portfolio outcomes will be tracked and reported monthly, with a quarterly formal review of the investment program for City staff.

RECOMMENDATION
The Audit Committee met on June 6, 2024 to review the proposed contract for investment management services with Chandler Asset Management and recommended City Council approval. Staff recommends the City Council:
• Approve an agreement with Chandler Asset Management for investment management services for three years from July 1, 2024 through June 30, 2027 with the not-to-exceed aggregate total of $218,000 over a three-year term with an option to extend for two additional one-year extensions with satisfactory performance; and • Authorize the City Manager to execute the initial three-year agreement and exercise two optional one-year extensions provided upon satisfactory performance for the first three years and the extension(s).

BACKGROUND
City staff has traditionally handled all investment responsibilities, making sure that each investment decision is in full compliance with the City’s Investment Policy. Based on the Federal Reserve’s unprecedented decision to keep the interest rate very low for a prolonged period coming out of the Great Recession and again during the COVID-19 pandemic,

investment choices based on the City’s primary goal of minimizing risk were limited. With the Federal Reserve raising and keeping the federal funds rate between 5.25 percent and 5.50 percent since July 2023 to control inflation, there are additional opportunities available in this higher interest rate environment while still keeping the risk minimal. To utilize these opportunities, and bring needed investment analytical and management resources, it was determined the City would engage an outside investment services firm that can provide these benefits.

DISCUSSION
A Request for Proposal (RFP) for investment management services was issued in the second half of 2023; the City received responses from six firms. Staff evaluated each proposal in accordance with the evaluation criteria, which included responsiveness; technical and relevant experience; qualifications of staff and related resources available to handle all required tasks; references from similar engagements; and other considerations. After reviewing all the proposals, staff interviewed three final candidates in May 2024:
• Chandler Asset Management, Inc. (Chandler)
• PFM Asset Management, LLC.
• Meeder Public Funds, Inc.

After careful review, staff selected Chandler Asset Management to provide external investment management services for the City. The relevant qualifications that led to the selection of Chandler are:
• The company provided the most similar and neighboring clients as references. • Management of over $35.4 billion in assets under management, with over $28.8 billion for over 200 public agencies, including 70 cities in California. • Demonstration of significant understanding of the City’s Investment Policy, portfolio requirements and objectives, including observations of the investment policy and analysis of the portfolio suggesting optimization of idle funds and improvements, such as diversification from pools for future consideration. • Provision of outstanding references, including testimonials of being service oriented, providing assistance beyond contracted services, validated performance beyond the benchmark while maintaining a lower risk than the benchmark. • Robust reporting as well as education and training which will save City staff’s time and provide continuity of care of the investment program through staff changes and various market cycles.
• A high allocation to US Treasuries, which have the full backing of the US Government, and federal agencies, which are issued by government-sponsored enterprises (GSEs) and have the implied backing of the US Government in each of the two strategic examples most frequently utilized by Chandler clients. Chandler has a robust credit process to analyze the safety of all nongovernmental holdings within the portfolio. • A long history of performing relevant cash flow analysis, assisting local governments identify near- and long-term investment goals while ensuring adequate cash reserves to fund near-term financial obligations.

EQUITY AND SUSTAINABILITY
Not applicable, as this item is a routine administrative matter of City business.

OUTREACH
The June 6, 2024, Audit Committee agenda was publicly noticed. No additional outreach was conducted, as this item is a routine administrative matter of City business.

STRATEGIC PLAN ALIGNMENT
Not applicable, as this item is a routine administrative matter.

FISCAL IMPACT
Staff anticipates initially contracting out a portion of its portfolio at approximately $40.0 million- $50.0 million, and this amount is expected to increase over time as more securities mature.

The investment management services for $40.0 million will cost nine basis points (0.09 percent) annually, or $3,000 per month. Fee rates go down as the size of overall investment dollars go up, per the fee schedule listed below.

At $40.0 million, the annual management service fee is estimated at $36,000. At $50.0 million, the annual management service fee is estimated at $42,000. The FY 2024/25 General Fund budget includes funding for investment management services. For the initial three-year agreement, the aggregate not-to-exceed total is $218,000. For the five-year term, estimated investment totals and associated management fees are as follows:

It is anticipated that over the long run, enhanced investment earnings should exceed investment management fees incurred, while achieving safety and liquidity through careful security selection, sector rotation, duration management, credit analysis, and efficient execution of trades.

Prepared by: Submitted by: Approved by:

Chris Yi, Financial Services
Manager
Susan Hsieh, Director of Finance

Gerry Beaudin, City
Manager

Attachments:

1. PSA Draft Chandler Asset Management

PROFESSIONAL SERVICES AGREEMENT
THIS AGREEMENT is entered into this 1st day of July 2024, between the CITY OF PLEASANTON, a municipal corporation ("City"), and Chandler Asset Management, Inc. whose address is 1901 Harrison Street, Suite 1100, Oakland, CA 94612, and telephone number is (858) 768-3150, ("Consultant").

RECITALS
A. Consultant is qualified and experienced in providing auditing services for the purposes specified in this Agreement.

B. City finds it necessary and advisable to use the services of Consultant for the purposes provided in this Agreement.

NOW THEREFORE , in consideration of the mutual covenants and conditions in this Agreement, City and Consultant agree as follows:

1. Consultant's Services. Consultant shall diligently perform the services and furnish the reports described in the Request for Proposals for Investment Management and Advisory Services (Issue Date: August 1, 2023) attached as Exhibit "A", Scope of Work, incorporated to the extent consistent with this Agreement.

2. City Assistance. In order to assist Consultant in this work, City shall provide, if necessary, the Assistance to Be Provided by the City as described in Exhibit A.

3. Staff. Consultant shall assign Carlos Oblites to serve as the Senior Portfolio Strategist and Aniel Murthy to serve as the Senior Relationship Manager, both of whom may not be replaced without written consent of City.

4. Term. This contract shall commence on the date written above and continue for three years with an option to extend the contract for an additional two years for a total of five years. The work as described in Exhibit "A", Scope of Work, shall be completed by June 30, 2027 or by June 30, 2029 if extended for an additional two years.

5. Compensation. For the services to be rendered, City shall pay Consultant up to $218,000 across three (3) fiscal years, as described more particularly in Exhibit "A", which is attached and incorporated to the extent consistent with this Agreement. Payment shall be made on a monthly basis upon receipt and approval of Consultant's invoice. a. Invoices submitted to City must contain a brief description of work performed, percentage of work completed, percentage of contract time used, percentage of contract amount expended. Payment shall be made within thirty (30) days of receipt of Consultant's invoice.
b. Upon completion of work and acceptance by City, Consultant shall have sixty (60) days in which to submit final invoicing for payment. An extension may be granted by City upon receiving a written request thirty (30) days in advance of said time limitation. The City Attachment 1

shall have no obligation or liability to pay any invoice for work performed which the Consultant fails or neglects to submit within sixty (60) days, or any extension thereof granted by the City, after the work is accepted by the City.

6. Sufficiency of Consultant's Work. By executing this Agreement, Consultant warrants that all services will be performed in a competent, professional and satisfactory manner.

Should Consultant discover any latent or unknown conditions, it shall immediately inform City and proceed only at its own risk until instructed by City.

7. Ownership of Work. All reports, work data, and all other documents completed or partially completed by Consultant in the performance of this Agreement (“materials”) shall become the property of City. All materials shall be delivered to the City upon completion or termination of the work under this Agreement. If any materials are lost, damaged or destroyed before final delivery to the City, the Consultant shall replace them at its own expense. Consultant shall keep materials confidential and shall not be used for purposes other than performance of services under this Agreement and shall not be disclosed to anyone not connected with these services unless the City provides prior written consent.

8. Changes. City may request changes in the scope of services to be provided by Consultant. Any changes and related fees shall be mutually agreed upon between the parties and subject to a written amendment to this Agreement.

9. Consultant's Status. In performing the obligations set forth in this Agreement, Consultant shall have the status of an independent contractor and Consultant shall not be considered to be an employee of the City for any purpose. All persons working for or under the direction of Consultant are its agents and employees and are not agents or employees of City.

10. Termination of Convenience of City. The City may terminate this Agreement at any time by mailing a notice in writing to Consultant. The Agreement shall then be deemed terminated and no further work shall be performed by Consultant. If the Agreement is so terminated, the Consultant shall be paid for that percentage of the work actually completed at the time the notice of termination is received.

11. Non-Assignability. The Consultant shall not assign, sublet, or transfer this Agreement or any interest or obligation in the Agreement without the prior written consent of the City, and then only upon such terms and conditions as City may set forth in writing. Consultant shall be solely responsible for reimbursing subcontractors.

12 . Indemnity and Hold Harmless. Consultant shall defend, indemnify, and hold harmless, the City and its officers, agents and employees from and against all claims, losses, damage, injury, and liability for damages arising from, or alleged to have arisen from, errors, omissions, negligent or wrongful acts of the Consultant in the performance of its services under this Agreement, regardless of whether the City has reviewed or approved the work or services which has given rise to the claim, loss, damage, injury or liability for damages. This indemnification shall extend for a reasonable period of time after completion of the project as well as during the period of actual performance of services under this Agreement. The City's acceptance of the insurance certificates required under this Agreement does not relieve the Consultant from its obligation under this paragraph.

13. Insurance. During the term of this Agreement, Consultant shall maintain in full force and effect at its own cost and expense the following insurance coverage with insurers with

an A.M. Best’s rating of no less than A:VII. Contractor shall have the obligation to furnish City, as additional insured, the minimum coverages identified below, or such greater or broader coverage for City, if available in the Contractor’s policies:

a. General Liability and Bodily Injury Insurance. Commercial general liability insurance with limits of at least $1,000,000 combined limit for bodily injury and property damage that provides that the City, its officers, employees and agents are named additional insureds under the policy. The policy shall state in writing either on the Certificate of Insurance or attached rider that this insurance will operate as primary insurance for work performed by Consultant and its subconsultants, and that no other insurance effected by City or other named insured will be called on to cover a loss.

b. Automobile Liability Insurance. Automobile liability insurance with limits not less than $1,000,000 per person/per occurrence.

c. Workers' Compensation Insurance. Workers' Compensation Insurance for all of Consultant's employees, in strict compliance with State laws, including a waiver of subrogation and Employer’s Liability Insurance with limits of at least $1,000,000.

d. Certificate of Insurance. Consultant shall file a certificate of insurance with the City prior to the City's execution of this Agreement, and prior to engaging in any operation or activity set forth in this Agreement. The Certificate of Insurance shall provide in writing that the insurance afforded by this Certificate shall not be suspended, voided, canceled, reduced in coverage or in limits without providing thirty (30) days prior written notice by certified mail, return receipt requested, has been given to the City. In addition, the insured shall provide thirty (30) days prior written notice to the City of any suspension, cancellation, reduction of coverage or in limits, or voiding of the insurance coverage required by this agreement. The City reserves the right to require complete certified copies of policies.

e. Waiver of Subrogation. The insurer agrees to waive all rights of subrogation against the City, its officers, employees and agents.

f. Defense Costs. Coverage shall be provided on a “pay on behalf’ of basis, with defense costs payable in addition to policy limits. There shall be no cross liability exclusions.

g. Subcontractors. Consultant shall include all subcontractors as insured under its policies or shall furnish separate certificates and endorsements for each subcontractor.

All coverages for subcontractors shall be subject to all of the requirements stated in this Agreement, including but not limited naming additional insureds.

14. Notices. All notices herein required shall be in writing and shall be sent by certified or registered mail, postage prepaid, addressed as follows:

To Consultant: Chandler Asset Management To City: City Manager Attn: Carlos Oblites & Aniel Murthy City of Pleasanton 1901 Harrison Street, Suite 1100 P.O. Box 520
Oakland, CA 94612 Pleasanton, CA 94566

15. Conformance to Applicable Laws. Consultant shall comply with all applicable Federal, State, and Municipal laws, rules, and ordinances. Consultant shall not discriminate in the employment of persons or in the provision of services under this Agreement on the basis of any

legally protected classification, including race, color, national origin, ancestry, sex or religion of such person.

16. Licenses, Certifications and Permits. Prior to the City's execution of this Agreement and prior to the Consultant's engaging in any operation or activity set forth in this Agreement, Consultant shall obtain a City of Pleasanton business license, which must be kept in effect during the term of this Agreement. Consultant covenants that it has obtained all certificates, licenses, permits and the like required to perform the services under this Agreement.

17. Records and Audits. Consultant shall maintain all records regarding this Agreement and the services performed for a period of five (5) years from the date that final payment is made. At any time during normal business hours, the records shall be made available to the City to inspect and audit.

18. Confidentiality. Consultant shall exercise reasonable precautions to prevent the unauthorized disclosure and use of City reports, information or conclusions.

19. Conflicts of Interest. Consultant covenants that other than this Agreement, Consultant has no financial interest with any official, employee or other representative of the City.

Consultant and its principals do not have any financial interest in real property, sources of income or investment that would be affected in any manner or degree by the performance of Consultant’s services under this Agreement. If such an interest occurs, Consultant will immediately notify the City.

20. Waiver. In the event either City or Consultant at any time waive any breach of this Agreement by the other, such waiver shall not constitute a waiver of any other or succeeding breach of this Agreement, whether of the same or of any other covenant, condition or obligation.

21. Governing Law. California law shall govern any legal action pursuant to this Agreement with venue in the applicable court or forum for Alameda County.

22. Attorney's Fees. The prevailing party in any action brought to enforce or construe the terms of this Agreement may recover from the other party its reasonable costs and attorney's fees expended in connection with such an action.

23. No Personal Liability. No official or employee of City shall be personally liable to Consultant in the event of any default or breach by the City or for any amount due Consultant.

24. Counterparts and Electronic Signatures. This Agreement may be executed in multiple counterparts, each of which shall be an original and all of which together shall constitute one agreement. Counterparts may be delivered via facsimile, electronic mail (including pdf or any electronic signature complying with U.S. federal E-Sign Act of 2000 (15 U.S. Code §7001 et seq.), California Uniform Electronic Transactions Act (Cal. Civil Code §1633.1 et seq.), or other applicable law) or other transmission method, and any counterpart so delivered shall be deemed to have been duly and validly delivered and be valid and effective for all purposes.

25. Scope of Agreement. This writing constitutes the entire Agreement between the parties. Any modification to the Agreement shall be in writing and signed by both parties.

THIS AGREEMENT executed the date and year first above written.

CITY OF PLEASANTON CONSULTANT

By: _________________________ By____________________________ Gerry Beaudin, City Manager
Its____________________________

ATTEST:

______________________________
Jocelyn Kwong, City Clerk

APPROVED AS TO FORM:

_______________________________
Daniel G. Sodergren City Attorney

[If Consultant is a corporation, signatures must comply with California Corporations Code §313]

Exhibit A

Scope of Work
Chandler Asset Management (“Consultant”), Inc. will provide investment services to the City of Pleasanton (“City”). The scope of work includes full-time investment management of City’s funds; reviewing and providing recommended updates to the investment policy; evaluating market risk and developing strategy; establishing appropriate benchmark; achieving portfolio compliance with code and the investment policy; ensuring portfolio match city’s investment objectives; performing rigorous credit analysis of securities held in the portfolio; and providing regular updates including monthly, quarterly, and annual reporting.

Proposed Fee Schedule
Consultant calculates fees based on the average balance of assets under our direct management (market value including accrued interest), fees in dollars will fluctuate (higher or lower) based on the actual portfolio value. Fees are charged monthly in arrears and can be debited directly from your third-party custody account. Consultant does not charge fees on funds held in vehicles not directly under our management, including Local Government Investment Pools and internally managed liquid funds. Below is the fee schedule.

Additional Terms

1. City Representative. In its capacity as investment manager, Consultant shall receive all instructions, directions and other communications on City's behalf respecting City's account from the Director of Finance or authorized designee. Consultant is hereby authorized to rely and act upon all such instructions, directions and communications from such Representative or any agent of such Representative.

2. Investment Policy. In investing and reinvesting City’s assets, Consultant shall comply with City’s Investment Policy, which is attached hereto as Exhibit A.

3. Authority of Consultant. Consultant is hereby granted full discretion to invest and reinvest all assets under its management in any type of security it deems appropriate, subject to the instructions given or guidelines set by Representative.

4. E
lectronic Delivery . From time to time, Consultant may be required to deliver certain documents to City such as account information, notices and required disclosures. City hereby consents to Consultant’s use of electronic means, such as email, to make such delivery. This delivery may include notification of the availability of such document(s) on a website, and City

agrees that such notification will constitute “delivery” . City further agrees to provide Consultant with City’s email address(s) and to keep this information current at all times by promptly notifying Consultant of any change in email address(s).

City email address(s): [email protected] and [email protected]

5. Proxy Voting. Consultant will vote proxies on behalf of City unless otherwise instructed. Consultant has adopted and implemented written policies and procedures and will provide City with a description of the proxy voting procedures upon request. Consultant will provide information regarding how City’s proxies were voted upon request. To request proxy policies or other information, please contact us by mail at the address provided, by calling 800- 317-4747 or by emailing your request to [email protected].

6. Custody of Securities and Funds. Consultant shall not have custody or possession of the funds or securities that City has placed under its management. City shall appoint a custodian to take and have possession of its assets. City recognizes the importance of comparing statements received from the appointed custodian to statements received from Consultant. City recognizes that the fees expressed above do not include fees City will incur for custodial services.

7. V aluation . Consultant will value securities held in portfolios managed by Consultant no less than monthly. Securities or investments in the portfolio will be valued in a manner determined in good faith by Consultant to reflect fair market value.

8. I nvestment Advice . City recognizes that the opinions, recommendations and actions of Consultant will be based on information deemed by it to be reliable, but not guaranteed to or by it. Provided that Consultant acts in good faith, City agrees that Consultant will not in any way be liable for any error in judgment or for any act or omission, except as may otherwise be provided for under the Federal Securities laws or other applicable laws.

9. P
ayment of Commissions . Consultant may place buy and sell orders with or through such brokers or dealers as it may select. It is the policy and practice of Consultant to strive for the best price and execution and for commission and discounts which are competitive in relation to the value of the transaction and which comply with Section 28(e) of the Securities and Exchange Act. Nevertheless, it is understood that Consultant may pay a commission on transactions in excess of the amount another broker or dealer may charge, and that Consultant makes no warranty or representation regarding commissions paid on transactions hereunder.

10. Other Clients. It is further understood that Consultant may be acting in a similar capacity for other institutional and individual clients, and that investments and reinvestments for City's portfolio may differ from those made or recommended with respect to other accounts and clients even though the investment objectives may be the same or similar. Accordingly, it is agreed that Consultant will have no obligation to purchase or sell for City's account any securities which it may purchase or sell for other clients.

11. C
onfidential Relationship . The terms and conditions of this Agreement, and all information and advice furnished by either party to the other shall be treated as confidential and shall not be

disclosed to third parties except (i) as required by law, rule, or regulation, (ii) as requested by a regulatory authority, (iii) for disclosures by either party of information that has become public by means other than wrongful conduct by such party or its officers, employees, or other personnel, (iv) for disclosures by either party to its legal counsel, accountants, or other professional advisers, (v) as necessary for Consultant to carry out its responsibilities hereunder, or (vi) as otherwise expressly agreed by the parties.

12. Receipt of Brochure and Privacy Policy. City hereby acknowledges receipt of the disclosure statement or "brochure" and “brochure supplement” also known as Part 2A and Part 2B of Form ADV , required to be delivered pursuant to Rule 204-3 of the Investment Advisers Act of 1940 (Brochure). City further acknowledges receipt of Consultant’s Privacy Policy, as required by Regulation S-P.

Item #8

CITY COUNCIL AGENDA REPORT

June 18, 2024
Finance

TITLE: ACCEPT THE MONTHLY DISBURSEMENTS AND INVESTMENT REPORT FOR APRIL 2024

SUMMARY
Accept claim disbursements in the amount of $12,894,099 and the investment report for the month of April 2024.

RECOMMENDATION
Accept claim disbursements in the amount of $12,894,099 and the investment report for the month of April 2024.

BACKGROUND
The City's Investment Policy requires the Director of Finance to submit a monthly transaction report to the City Council within 60 days of the end of the reporting period in accordance with California Government Code Section 53607.

The Investment Policy also requires the Director of Finance to submit a quarterly report to the City Council on the status of the City's investment portfolio no later than 45 days after the end of each month. This report shall include the types of investments, the amount of money invested with various institutions, purchase and maturity dates, and yield on investments. The Director of Finance certifies that the investment portfolio is in compliance with the investment policy and that it will meet cash flow needs for the next six months.

The staff report also includes check and electronic payment information for April 2024.

DISCUSSION
The monthly disbursements and investment report provides transparency of the City’s financial transactions and payments for review by the City Council. Of note, the medium term note with 3M Company is rated at A by Moody's and rated at BBB+ by S&P. A rating of A indicates the investment grade is very high and a rating of BBB+ indicates the investment grade is good.

When this investment was purchased in 2019, it met the A rating category required by the City's investment policy. This investment is scheduled to mature in February 2025. Staff has been monitoring this investment and will take action such as selling the security before maturity if warranted.

EQUITY AND SUSTAINABILITY
Not applicable, as this item is a routine administrative matter of City business.

OUTREACH
No outreach was conducted, as this item is a routine administrative matter of City business.

STRATEGIC PLAN ALIGNMENT
Not applicable, as this item is a routine administrative matter.

FISCAL IMPACT
There is no fiscal impact associated with acceptance of this report.

Prepared by: Submitted by: Approved by:

Dawn DeMarcus, Senior
Budget and Finance Analyst
Susan Hsieh, Director of Finance

Gerry Beaudin, City
Manager

Attachments:

1. April 2024 Disbursements and Investment Report

APRIL 2024 DISBURSEMENTS
CHECK REGISTER*

DATE CHECK NUMBER AMOUNT
4/5/2024 61073-61206 694,515$
4/8/2024 61215 1,259
4/9/2024 61216 15,697
4/11/2024 61217-61338 397,238
4/16/2024 61343-61344 1,447,717
4/19/202461345-61457, 61474-61475 816,635
4/25/2024 61476-61606 921,272
4,294,333$

ACH PAYMENTS

DATE CHECK NUMBER AMOUNT
4/5/2024 61207-61214 247,967$
4/11/2024 61339-61342 2,034,830
4/19/2024 61458-61473 253,378
4/25/2024 61607-61615 969,117
Payroll & Tax related ACH Payments1,823,744
5,329,035$

WIRE TRANSFERS AMOUNT
-$

PAYROLL TRANSFERS

DATE AMOUNT
4/3/2024 1,643,900 $
4/18/2024 1,626,832
3,270,731$
TOTAL DISBURSEMENTS 12,894,099$
* Detailed registers available upon request.

$250,564,664

1.60%
475
*Based on Market value
Total Market Value
Effective Rate of Return
Portfolio Snapshot
Average Days to Maturity
Portfolio Characteristics
April 30, 2024

0.2%29.6%10.3%1.1%58.5%0.4%Sector Allocation
Certificates of Deposit - Bank
LAIF
Medium Term Notes
Federal Agency Issues - Coupon
Federal Agency Issues - Callable
Supranationals
- 20,000,000 40,000,000 60,000,000 80,000,000 100,000,000 120,000,0000-1 Yrs 1-2 Yrs 2-3 Yrs 3-4 Yrs 4-5 Yrs36%46%18%Maturity Distribution29.6%0.2%4.1%65.0%0.4%0.8%Assigned Credit Ratings of InvestmentsLAIFFDICAAAAAABBB

CITY OF PLEASANTON
Portfolio Management
April 30, 2024
City of Pleasanton
Portfolio Summary
% of
Portfolio
Book
ValueInvestments
Market
Value
Par
Value
Days to
MaturityTerm
YTM
360 Equiv.

YTM
365 Equiv.

Certificates of Deposit - Bank 490,266.82 2620.19 4.823246490,266.82490,266.82 4.890 LAIF 74,500,000.00 128.12 4.213174,067,249.3974,500,000.00 4.272 Medium Term Notes 27,513,515.08 1,80110.39 1.57341225,867,319.7026,970,000.00 1.594 Federal Agency Issues - Coupon 2,995,657.09 1,8251.13 1.2629642,742,240.003,000,000.00 1.280 Federal Agency Issues - Callable 158,420,440.80 1,82259.80 0.903699146,480,368.25158,630,000.00 0.916 Supranationals 980,200.00 1,7040.37 0.922666917,220.001,000,000.00 0.935 264,900,079.79 100.00%
Investments
250,564,664.16264,590,266.82 1,305 475 1.915 1.942
Current Year
April 30
393,551.89
Fiscal Year To Date
3,123,471.13
Average Daily Balance
Effective Rate of Return
254,330,644.64 233,796,047.28

1.60%1.88%
Total Earnings Month Ending
I hereby certify that, to the best of my knowledge, this report includes all investments in the cash management program, is in accordance with the City's current investment policy dated June 20, 2023 and will meet the City's cash flow needs for the next six months. Market value amounts are from Bank of New York Mellon (safekeeping bank) month-end statements. Book value amounts include premiums or discounts and are adjusted at year end on the general ledger. __________________________________________________ ____________________

SUSAN HSIEH, DIRECTOR OF FINANCE
Portfolio PLST
CC
Reporting period 04/01/2024-04/30/2024
Run Date: 05/28/2024 - 15:39 PM (PRF_PM1) 7.3.11
Report Ver. 7.3.11
6/5/2024

YTM
365

Par Value Book Value
Maturity
Date
Stated
RateMarket Value
April 30, 2024
Portfolio Details - Investments
Average
BalanceIssuer
Portfolio Management

CITY OF PLEASANTON
Days to
Maturity
YTM
360CUSIP Investment #
Purchase
Date
Certificates of Deposit - Bank

4.890Fremont Bank1093-2 239,245.20 239,245.20 09/21/20244.89004/21/2024 239,245.20 4.823SYS 143

4.890United Business Bank1091-2 251,021.62 251,021.62 04/11/20254.89004/11/2024 251,021.62 4.823SYS 1091 345 490,266.82 4.823490,266.82490,266.82487,498.34Subtotal and Average 4.890 246 LAIF

4.272LOCAL AGENCY INVESTMENT FUND5 74,500,000.00 74,500,000.00 4.27274,067,249.39 4.213SYS5 1 74,500,000.00 4.21374,067,249.3974,500,000.0063,933,333.33Subtotal and Average 4.272 1 Medium Term Notes

2.753Apple Inc.6045 2,000,000.00 2,009,000.00 05/11/20242.85005/03/2019 1,998,020.00 2.716037833CU2 10

2.808PACCAR FINANCIAL CORP6062 1,330,000.00 1,294,196.40 08/15/20242.15003/31/2020 1,316,926.10 2.77069371RQ25 106

1.800Apple Inc.6048 1,040,000.00 1,040,000.00 09/11/20241.80001/07/2020 1,026,521.60 1.775037833DM9 133

2.000Toyota Motor Credit Corp6046 1,600,000.00 1,599,984.00 10/07/20242.00010/24/2019 1,576,272.00 1.97389236TGL3 159

1.965Apple Inc.6049 1,000,000.00 1,037,212.20 01/13/20252.75001/13/2020 981,970.00 1.938037833DF4 257

1.8233M Company6053 2,000,000.00 2,016,869.48 02/14/20252.00002/14/2020 1,941,560.00 1.79888579YBH3 289

1.690EXXON MOBIL CORPORATION6056 3,000,000.00 3,145,587.00 03/06/20252.70903/11/2020 2,932,200.00 1.66730231GAF9 309

1.821Truist Bank6058 2,000,000.00 1,969,486.00 03/10/20251.50003/13/2020 1,930,040.00 1.79689788JAA7 313

1.777EXXON MOBIL CORPORATION6064 2,000,000.00 2,113,800.00 03/19/20252.99204/20/2020 1,959,100.00 1.75330231GBH4 322

1.090Toyota Motor Credit Corp6067 3,000,000.00 2,959,140.00 01/09/20260.80003/09/2021 2,780,370.00 1.07589236THW8 618

0.732Apple Inc.6065 2,000,000.00 1,996,860.00 02/08/20260.70002/08/2021 1,848,540.00 0.722037833EB2 648

0.981Apple Inc.6066 3,000,000.00 3,331,380.00 02/23/20263.25002/23/2021 2,897,730.00 0.967037833BY5 663

1.100JPMorgan Chase Bank NA6068 3,000,000.00 3,000,000.00 06/22/20261.10006/22/2021 2,678,070.00 1.08546632FSCO 782 27,513,515.08 1.57325,867,319.7026,970,000.0027,513,515.08Subtotal and Average 1.594 412 Federal Agency Issues - Coupon

1.280FEDERAL HOME LOAN BANK3576 3,000,000.00 2,995,657.09 12/21/20261.25012/22/2021 2,742,240.00 1.2623130AQF65 964 2,995,657.09 1.2622,742,240.003,000,000.002,995,657.09Subtotal and Average 1.280 964 Federal Agency Issues - Callable

0.707FREDDIE MAC4535 3,000,000.00 2,998,950.00 06/23/20250.70006/23/2020 2,850,870.00 0.6973134GVZ68 418

0.715FEDERAL FARM CREDIT BANK4537 3,000,000.00 2,997,750.00 06/30/20250.70007/06/2020 2,848,380.00 0.7063133ELQ49 425

0.707FEDERAL NATIONAL MORTGAGE ASSN4538 3,250,000.00 3,248,862.50 07/14/20250.70007/14/2020 3,080,415.00 0.6973136G4YH0 439

0.710FEDERAL NATIONAL MORTGAGE ASSN4541 3,000,000.00 3,000,000.00 07/22/20250.71007/22/2020 2,841,000.00 0.7003136G4A45 447

0.620FEDERAL HOME LOAN BANK4544 3,000,000.00 2,997,000.00 08/27/20250.60008/27/2020 2,824,260.00 0.6123130AJZ36 483

0.657FREDDIE MAC4545 3,000,000.00 2,998,950.00 09/09/20250.65009/09/2020 2,824,050.00 0.6483134GWA55 496

0.550FEDERAL FARM CREDIT BANK4548 3,340,000.00 3,336,660.00 09/29/20250.53010/05/2020 3,130,815.80 0.5433133EMBJ0 516

0.550FREDDIE MAC4547 3,000,000.00 3,000,000.00 09/30/20250.55009/30/2020 2,812,650.00 0.5423134GWW93 517

0.566FREDDIE MAC4549 3,000,000.00 2,997,600.00 09/30/20250.55010/07/2020 2,812,650.00 0.5593134GWWT9 517 Portfolio PLST
CC
Run Date: 05/28/2024 - 15:39 PM (PRF_PM2) 7.3.11
Report Ver. 7.3.11

YTM
365

Par Value Book Value
Maturity
Date
Stated
RateMarket Value
April 30, 2024
Portfolio Details - Investments
Average
BalanceIssuer
Portfolio Management

CITY OF PLEASANTON
Days to
Maturity
YTM
360CUSIP Investment #
Purchase
Date
Federal Agency Issues - Callable

0.600FREDDIE MAC4550 3,000,000.00 3,000,000.00 10/28/20250.60010/28/2020 2,804,820.00 0.5923134GW3F1 545

0.595FEDERAL HOME LOAN BANK4553 3,000,000.00 2,996,250.00 11/25/20250.57011/25/2020 2,790,990.00 0.5873130AKGD2 573

0.600FEDERAL NATIONAL MORTGAGE ASSN4552 3,000,000.00 3,000,000.00 11/25/20250.60011/25/2020 2,795,280.00 0.5923135GA3W9 573

0.620FREDDIE MAC4554 3,000,000.00 3,000,000.00 12/01/20250.62012/01/2020 2,794,080.00 0.6123134GXDM3 579

0.625FEDERAL HOME LOAN BANK4555 3,000,000.00 3,000,000.00 01/22/20260.62501/22/2021 2,772,840.00 0.6163130AKQ74 631

0.650FEDERAL HOME LOAN BANK4557 3,000,000.00 3,000,000.00 01/28/20260.65001/28/2021 2,764,620.00 0.6413130AKRN8 637

0.550FEDERAL NATIONAL MORTGAGE ASSN4556 3,000,000.00 3,000,000.00 01/28/20260.55001/28/2021 2,770,740.00 0.5423135G06R9 637

0.110FEDERAL HOME LOAN BANK4558 3,000,000.00 3,000,000.00 02/12/20260.60002/12/2021 2,767,050.00 0.1093130AKXQ4 652

0.625FEDERAL HOME LOAN BANK4560 3,000,000.00 3,000,000.00 02/17/20260.62502/17/2021 2,763,810.00 0.6163130AL3S1 657

0.650FEDERAL HOME LOAN BANK4561 3,000,000.00 3,000,000.00 02/24/20260.65002/24/2021 2,763,960.00 0.6413130AL5X8 664

0.616FEDERAL HOME LOAN BANK4562 3,125,000.00 3,122,500.00 02/24/20260.60002/24/2021 2,874,093.75 0.6083130AKXJ0 664

0.750FEDERAL HOME LOAN BANK4563 3,000,000.00 3,000,000.00 02/24/20260.75002/24/2021 2,771,880.00 0.7403130ALCV4 664

0.650FEDERAL HOME LOAN BANK4559 3,000,000.00 3,000,000.00 02/26/20260.65002/26/2021 2,763,780.00 0.6413130AKZ25 666

0.922FEDERAL HOME LOAN BANK4572 3,000,000.00 2,989,560.00 02/26/20260.85003/15/2021 2,775,840.00 0.9093130ALGR9 666

0.947FEDERAL HOME LOAN BANK4574 3,000,000.00 2,985,960.00 02/26/20260.85003/18/2021 2,775,840.00 0.9343130ALGR9 666

0.971FEDERAL HOME LOAN BANK4577 3,000,000.00 2,982,510.00 02/26/20260.85003/22/2021 2,775,840.00 0.9583130ALGR9 666

1.000FEDERAL HOME LOAN BANK4579 3,000,000.00 2,978,517.00 02/26/20260.85003/31/2021 2,775,840.00 0.9863130ALGR9 666

0.800FEDERAL HOME LOAN BANK4565 3,000,000.00 3,000,000.00 03/16/20260.80003/16/2021 2,764,260.00 0.7893130ALDN1 684

0.875FEDERAL HOME LOAN BANK4569 3,000,000.00 3,000,000.00 03/23/20260.87503/23/2021 2,765,730.00 0.8633130ALGC2 691

0.959FEDERAL HOME LOAN BANK4576 3,000,000.00 2,987,700.00 03/23/20260.87503/23/2021 2,765,730.00 0.9463130ALGC2 691

1.050FEDERAL FARM CREDIT BANK4575 3,000,000.00 3,000,000.00 03/25/20261.05003/25/2021 2,777,550.00 1.0363133EMUK6 693

1.000FEDERAL HOME LOAN BANK4571 3,000,000.00 3,000,000.00 03/30/20261.00003/30/2021 2,772,900.00 0.9863130ALMM3 698

0.993FEDERAL HOME LOAN BANK4578 3,000,000.00 2,998,050.00 03/30/20260.98003/30/2021 2,771,850.00 0.9803130ALNT7 698

1.026FEDERAL HOME LOAN BANK4581 3,000,000.00 2,996,250.00 03/30/20261.00004/05/2021 2,772,900.00 1.0123130ALMM3 698

1.051FEDERAL HOME LOAN BANK4580 3,000,000.00 2,995,500.00 04/15/20261.02004/15/2021 2,767,890.00 1.0363130ALUC6 714

1.020FEDERAL HOME LOAN BANK4585 2,795,000.00 2,795,000.00 05/19/20261.02005/20/2021 2,571,120.50 1.0063130AMCL4 748

1.010FEDERAL HOME LOAN BANK4587 3,000,000.00 2,998,500.00 05/26/20261.00005/26/2021 2,756,640.00 0.9963130AMH62 755

0.987FEDERAL HOME LOAN BANK4588 3,000,000.00 2,998,950.00 05/26/20260.98005/26/2021 2,754,390.00 0.9743130AMGW6 755

0.901FEDERAL HOME LOAN BANK4590 2,750,000.00 2,746,562.50 05/26/20260.87506/02/2021 2,515,315.00 0.8883130AMHB1 755

1.000FEDERAL HOME LOAN BANK4591 1,500,000.00 1,500,000.00 05/26/20261.00006/02/2021 1,378,320.00 0.9863130AMH62 755

0.921FEDERAL FARM CREDIT BANK4595 3,000,000.00 2,997,000.00 06/15/20260.90006/24/2021 2,743,860.00 0.9083133EMH21 775

1.030FEDERAL HOME LOAN BANK4592 3,000,000.00 3,000,000.00 06/30/20261.03006/30/2021 2,747,580.00 1.0163130AMSL7 790

1.070FEDERAL HOME LOAN BANK4594 3,000,000.00 3,000,000.00 06/30/20261.07006/30/2021 2,750,010.00 1.0553130AMYA4 790

1.000FEDERAL HOME LOAN BANK4596 1,500,000.00 1,500,000.00 06/30/20261.00006/30/2021 1,372,875.00 0.9863130AN2Q2 790

1.025FEDERAL HOME LOAN BANK4597 3,000,000.00 2,999,250.00 07/14/20261.02007/14/2021 2,741,520.00 1.0113130AMWK4 804

1.033FEDERAL HOME LOAN BANK4598 3,000,000.00 2,983,500.00 09/30/20260.92009/30/2021 2,711,580.00 1.0193130AP2P9 882

1.085FEDERAL HOME LOAN BANK4599 3,000,000.00 2,997,750.00 10/14/20261.07010/14/2021 2,717,520.00 1.0713130APC94 896

1.421FEDERAL HOME LOAN BANK4600 530,000.00 526,947.20 11/24/20261.30012/09/2021 480,900.80 1.4013130APU78 937 Portfolio PLST
CC
Run Date: 05/28/2024 - 15:39 PM (PRF_PM2) 7.3.11

YTM
365

Par Value Book Value
Maturity
Date
Stated
RateMarket Value
April 30, 2024
Portfolio Details - Investments
Average
BalanceIssuer
Portfolio Management

CITY OF PLEASANTON
Days to
Maturity
YTM
360CUSIP Investment #
Purchase
Date
Federal Agency Issues - Callable

1.421FEDERAL HOME LOAN BANK4601 1,840,000.00 1,829,401.60 11/24/20261.30012/09/2021 1,669,542.40 1.4013130APUR4 937

1.459FEDERAL HOME LOAN BANK4602 3,000,000.00 2,988,000.00 12/01/20261.37512/09/2021 2,725,350.00 1.4393130APVC6 944

1.425FEDERAL HOME LOAN BANK4605 3,000,000.00 2,999,250.00 12/29/20261.42001/03/2022 2,715,030.00 1.4063130AQG80 972

1.541FEDERAL HOME LOAN BANK4606 3,000,000.00 2,982,750.00 12/29/20261.42001/10/2022 2,715,030.00 1.5193130AQG80 972

1.370FEDERAL HOME LOAN BANK4603 3,000,000.00 3,000,000.00 12/30/20261.37012/30/2021 2,710,470.00 1.3513130AQEC3 973

1.385FEDERAL HOME LOAN BANK4604 3,000,000.00 2,998,500.00 12/30/20261.37512/30/2021 2,710,830.00 1.3663130AQEF6 973

1.926FEDERAL HOME LOAN BANK4607 3,000,000.00 2,975,010.00 01/28/20271.75002/08/2022 2,743,920.00 1.9003130AQLD3 1,002

2.112FEDERAL HOME LOAN BANK4608 3,000,000.00 2,995,500.00 02/25/20272.08003/08/2022 2,763,360.00 2.0833130AQW66 1,030 158,420,440.80 0.903146,480,368.25158,630,000.00158,420,440.80Subtotal and Average 0.916 699 Supranationals

0.935International Finance Corp7000 1,000,000.00 980,200.00 02/26/20260.50006/28/2021 917,220.00 0.92245950VPS9 666 980,200.00 0.922917,220.001,000,000.00980,200.00Subtotal and Average 0.935 666

1.915254,330,644.64 264,590,266.82 1.942 475250,564,664.16 264,900,079.79Total and Average Portfolio PLST
CC
Run Date: 05/28/2024 - 15:39 PM (PRF_PM2) 7.3.11

Par Value Book Value
Maturity
Date
Accrued
InterestMarket Value
April 30, 2024
Portfolio Details with Earnings - Investments
Average
BalanceIssuer
Portfolio Management

CITY OF PLEASANTON
CUSIP Investment #
Purchase
Date
Days To
Maturity
Unrealized
Gain/Loss
Current
Rate YTM
Certificates of Deposit - Bank
FREMON1093-2 239,245.20 239,245.20 09/21/202404/21/2024 239,245.20SYS 320.52 0.004.8904.890 143 VCB1091-2 251,021.62 251,021.62 04/11/202504/11/2024 251,021.62SYS 1091 672.60 0.004.8904.890 345 490,266.82490,266.82490,266.82487,498.34Subtotal and Average 993.12 0.00246 4.8904.890 LAIF
LAIF5 74,500,000.00 74,500,000.0074,067,249.39SYS5 194,627.36 -432,750.614.2724.272 1 74,500,000.0074,067,249.3974,500,000.0063,933,333.33Subtotal and Average 194,627.36 -432,750.611 4.2724.272 Medium Term Notes
APPL6045 2,000,000.00 2,009,000.00 05/11/202405/03/2019 1,998,020.00037833CU2 26,916.67 -10,980.002.7532.850 10 PCAR6062 1,330,000.00 1,294,196.40 08/15/202403/31/2020 1,316,926.1069371RQ25 6,036.72 22,729.702.8082.150 106 APPL6048 1,040,000.00 1,040,000.00 09/11/202401/07/2020 1,026,521.60037833DM9 2,600.00 -13,478.401.7991.800 133 TOYOTA6046 1,600,000.00 1,599,984.00 10/07/202410/24/2019 1,576,272.0089236TGL3 2,133.33 -23,712.002.0002.000 159 APPL6049 1,000,000.00 1,037,212.20 01/13/202501/13/2020 981,970.00037833DF4 8,250.00 -55,242.201.9642.750 257 3M6053 2,000,000.00 2,016,869.48 02/14/202502/14/2020 1,941,560.0088579YBH3 8,555.56 -75,309.481.8222.000 289 XOM6056 3,000,000.00 3,145,587.00 03/06/202503/11/2020 2,932,200.0030231GAF9 12,416.25 -213,387.001.6892.709 309 TRU6058 2,000,000.00 1,969,486.00 03/10/202503/13/2020 1,930,040.0089788JAA7 4,250.00 -39,446.001.8211.500 313 XOM6064 2,000,000.00 2,113,800.00 03/19/202504/20/2020 1,959,100.0030231GBH4 6,981.33 -154,700.001.7772.992 322 TOYOTA6067 3,000,000.00 2,959,140.00 01/09/202603/09/2021 2,780,370.0089236THW8 7,466.66 -178,770.001.0900.800 618 APPL6065 2,000,000.00 1,996,860.00 02/08/202602/08/2021 1,848,540.00037833EB2 3,227.78 -148,320.000.7320.700 648 APPL6066 3,000,000.00 3,331,380.00 02/23/202602/23/2021 2,897,730.00037833BY5 18,416.67 -433,650.000.9803.250 663 JP6068 3,000,000.00 3,000,000.00 06/22/202606/22/2021 2,678,070.0046632FSCO 11,825.00 -321,930.001.1001.100 782 27,513,515.0825,867,319.7026,970,000.0027,513,515.08Subtotal and Average 119,075.97 -1,646,195.38412 1.5942.041 Federal Agency Issues - Coupon
FHLB3576 3,000,000.00 2,995,657.09 12/21/202612/22/2021 2,742,240.003130AQF65 13,541.66 -253,417.091.2801.250 964 2,995,657.092,742,240.003,000,000.002,995,657.09Subtotal and Average 13,541.66 -253,417.09964 1.2801.250 Federal Agency Issues - Callable
FHLMC4535 3,000,000.00 2,998,950.00 06/23/202506/23/2020 2,850,870.003134GVZ68 7,466.67 -148,080.000.7070.700 418 FFCB4537 3,000,000.00 2,997,750.00 06/30/202507/06/2020 2,848,380.003133ELQ49 7,058.33 -149,370.000.7150.700 425 FNMA4538 3,250,000.00 3,248,862.50 07/14/202507/14/2020 3,080,415.003136G4YH0 6,761.81 -168,447.500.7070.700 439 FNMA4541 3,000,000.00 3,000,000.00 07/22/202507/22/2020 2,841,000.003136G4A45 5,857.50 -159,000.000.7100.710 447 FHLB4544 3,000,000.00 2,997,000.00 08/27/202508/27/2020 2,824,260.003130AJZ36 3,200.00 -172,740.000.6200.600 483 FHLMC4545 3,000,000.00 2,998,950.00 09/09/202509/09/2020 2,824,050.003134GWA55 2,816.67 -174,900.000.6570.650 496 FFCB4548 3,340,000.00 3,336,660.00 09/29/202510/05/2020 3,130,815.803133EMBJ0 1,573.51 -205,844.200.5500.530 516 FHLMC4547 3,000,000.00 3,000,000.00 09/30/202509/30/2020 2,812,650.003134GWW93 1,420.83 -187,350.000.5500.550 517 FHLMC4549 3,000,000.00 2,997,600.00 09/30/202510/07/2020 2,812,650.003134GWWT9 1,420.83 -184,950.000.5660.550 517 FHLMC4550 3,000,000.00 3,000,000.00 10/28/202510/28/2020 2,804,820.003134GW3F1 150.00 -195,180.000.6000.600 545 Portfolio PLST
CC
Run Date: 05/28/2024 - 15:39 PM (PRF_PM8) 7.3.11
Report Ver. 7.3.11

Par Value Book Value
Maturity
Date
Accrued
InterestMarket Value
April 30, 2024
Portfolio Details with Earnings - Investments
Average
BalanceIssuer
Portfolio Management

CITY OF PLEASANTON
CUSIP Investment #
Purchase
Date
Days To
Maturity
Unrealized
Gain/Loss
Current
Rate YTM
Federal Agency Issues - Callable
FHLB4553 3,000,000.00 2,996,250.00 11/25/202511/25/2020 2,790,990.003130AKGD2 7,410.00 -205,260.000.5950.570 573 FNMA4552 3,000,000.00 3,000,000.00 11/25/202511/25/2020 2,795,280.003135GA3W9 7,800.00 -204,720.000.6000.600 573 FHLMC4554 3,000,000.00 3,000,000.00 12/01/202512/01/2020 2,794,080.003134GXDM3 7,750.00 -205,920.000.6200.620 579 FHLB4555 3,000,000.00 3,000,000.00 01/22/202601/22/2021 2,772,840.003130AKQ74 5,156.25 -227,160.000.6250.625 631 FHLB4557 3,000,000.00 3,000,000.00 01/28/202601/28/2021 2,764,620.003130AKRN8 5,037.50 -235,380.000.6500.650 637 FNMA4556 3,000,000.00 3,000,000.00 01/28/202601/28/2021 2,770,740.003135G06R9 4,262.50 -229,260.000.5500.550 637 FHLB4558 3,000,000.00 3,000,000.00 02/12/202602/12/2021 2,767,050.003130AKXQ4 3,950.00 -232,950.000.1100.600 652 FHLB4560 3,000,000.00 3,000,000.00 02/17/202602/17/2021 2,763,810.003130AL3S1 3,854.17 -236,190.000.6250.625 657 FHLB4561 3,000,000.00 3,000,000.00 02/24/202602/24/2021 2,763,960.003130AL5X8 3,629.17 -236,040.000.6500.650 664 FHLB4562 3,125,000.00 3,122,500.00 02/24/202602/24/2021 2,874,093.753130AKXJ0 3,489.58 -248,406.250.6160.600 664 FHLB4563 3,000,000.00 3,000,000.00 02/24/202602/24/2021 2,771,880.003130ALCV4 4,187.50 -228,120.000.7500.750 664 FHLB4559 3,000,000.00 3,000,000.00 02/26/202602/26/2021 2,763,780.003130AKZ25 3,520.83 -236,220.000.6500.650 666 FHLB4572 3,000,000.00 2,989,560.00 02/26/202603/15/2021 2,775,840.003130ALGR9 4,604.17 -213,720.000.9220.850 666 FHLB4574 3,000,000.00 2,985,960.00 02/26/202603/18/2021 2,775,840.003130ALGR9 4,604.17 -210,120.000.9470.850 666 FHLB4577 3,000,000.00 2,982,510.00 02/26/202603/22/2021 2,775,840.003130ALGR9 4,604.17 -206,670.000.9710.850 666 FHLB4579 3,000,000.00 2,978,517.00 02/26/202603/31/2021 2,775,840.003130ALGR9 4,604.17 -202,677.001.0000.850 666 FHLB4565 3,000,000.00 3,000,000.00 03/16/202603/16/2021 2,764,260.003130ALDN1 3,000.00 -235,740.000.8000.800 684 FHLB4569 3,000,000.00 3,000,000.00 03/23/202603/23/2021 2,765,730.003130ALGC2 2,770.83 -234,270.000.8750.875 691 FHLB4576 3,000,000.00 2,987,700.00 03/23/202603/23/2021 2,765,730.003130ALGC2 2,770.83 -221,970.000.9590.875 691 FFCB4575 3,000,000.00 3,000,000.00 03/25/202603/25/2021 2,777,550.003133EMUK6 3,150.00 -222,450.001.0501.050 693 FHLB4571 3,000,000.00 3,000,000.00 03/30/202603/30/2021 2,772,900.003130ALMM3 2,583.33 -227,100.001.0001.000 698 FHLB4578 3,000,000.00 2,998,050.00 03/30/202603/30/2021 2,771,850.003130ALNT7 2,531.67 -226,200.000.9930.980 698 FHLB4581 3,000,000.00 2,996,250.00 03/30/202604/05/2021 2,772,900.003130ALMM3 2,583.33 -223,350.001.0251.000 698 FHLB4580 3,000,000.00 2,995,500.00 04/15/202604/15/2021 2,767,890.003130ALUC6 1,360.00 -227,610.001.0501.020 714 FHLB4585 2,795,000.00 2,795,000.00 05/19/202605/20/2021 2,571,120.503130AMCL4 12,829.05 -223,879.501.0191.020 748 FHLB4587 3,000,000.00 2,998,500.00 05/26/202605/26/2021 2,756,640.003130AMH62 12,916.67 -241,860.001.0101.000 755 FHLB4588 3,000,000.00 2,998,950.00 05/26/202605/26/2021 2,754,390.003130AMGW6 12,658.33 -244,560.000.9870.980 755 FHLB4590 2,750,000.00 2,746,562.50 05/26/202606/02/2021 2,515,315.003130AMHB1 10,360.24 -231,247.500.9000.875 755 FHLB4591 1,500,000.00 1,500,000.00 05/26/202606/02/2021 1,378,320.003130AMH62 6,458.33 -121,680.000.9991.000 755 FFCB4595 3,000,000.00 2,997,000.00 06/15/202606/24/2021 2,743,860.003133EMH21 10,200.00 -253,140.000.9200.900 775 FHLB4592 3,000,000.00 3,000,000.00 06/30/202606/30/2021 2,747,580.003130AMSL7 10,385.83 -252,420.001.0301.030 790 FHLB4594 3,000,000.00 3,000,000.00 06/30/202606/30/2021 2,750,010.003130AMYA4 10,789.17 -249,990.001.0701.070 790 FHLB4596 1,500,000.00 1,500,000.00 06/30/202606/30/2021 1,372,875.003130AN2Q2 5,041.67 -127,125.001.0001.000 790 FHLB4597 3,000,000.00 2,999,250.00 07/14/202607/14/2021 2,741,520.003130AMWK4 9,095.00 -257,730.001.0251.020 804 FHLB4598 3,000,000.00 2,983,500.00 09/30/202609/30/2021 2,711,580.003130AP2P9 2,376.67 -271,920.001.0330.920 882 FHLB4599 3,000,000.00 2,997,750.00 10/14/202610/14/2021 2,717,520.003130APC94 1,515.83 -280,230.001.0851.070 896 FHLB4600 530,000.00 526,947.20 11/24/202612/09/2021 480,900.803130APU78 3,004.81 -46,046.401.4201.300 937 FHLB4601 1,840,000.00 1,829,401.60 11/24/202612/09/2021 1,669,542.403130APUR4 10,431.78 -159,859.201.4201.300 937 Portfolio PLST
CC
Run Date: 05/28/2024 - 15:39 PM (PRF_PM8) 7.3.11

Par Value Book Value
Maturity
Date
Accrued
InterestMarket Value
April 30, 2024
Portfolio Details with Earnings - Investments
Average
BalanceIssuer
Portfolio Management

CITY OF PLEASANTON
CUSIP Investment #
Purchase
Date
Days To
Maturity
Unrealized
Gain/Loss
Current
Rate YTM
Federal Agency Issues - Callable
FHLB4602 3,000,000.00 2,988,000.00 12/01/202612/09/2021 2,725,350.003130APVC6 17,187.50 -262,650.001.4581.375 944 FHLB4605 3,000,000.00 2,999,250.00 12/29/202601/03/2022 2,715,030.003130AQG80 14,436.67 -284,220.001.4251.420 972 FHLB4606 3,000,000.00 2,982,750.00 12/29/202601/10/2022 2,715,030.003130AQG80 14,436.67 -267,720.001.5401.420 972 FHLB4603 3,000,000.00 3,000,000.00 12/30/202612/30/2021 2,710,470.003130AQEC3 13,814.17 -289,530.001.3701.370 973 FHLB4604 3,000,000.00 2,998,500.00 12/30/202612/30/2021 2,710,830.003130AQEF6 13,864.58 -287,670.001.3851.375 973 FHLB4607 3,000,000.00 2,975,010.00 01/28/202702/08/2022 2,743,920.003130AQLD3 13,562.50 -231,090.001.9261.750 1002 FHLB4608 3,000,000.00 2,995,500.00 02/25/202703/08/2022 2,763,360.003130AQW66 11,440.00 -232,140.002.1112.080 1030 158,420,440.80146,480,368.25158,630,000.00158,420,440.80Subtotal and Average 353,745.79 -11,940,072.55699 0.9160.898 Supranationals
IFC7000 1,000,000.00 980,200.00 02/26/202606/28/2021 917,220.0045950VPS9 902.78 -62,980.000.9350.500 666 980,200.00917,220.001,000,000.00980,200.00Subtotal and Average 902.78 -62,980.00666 0.9350.500 264,590,266.82 250,564,664.16 264,900,079.79 1.975 475 1.942 682,886.68 -14,335,415.63254,330,644.64Total and Average Portfolio PLST
CC
Run Date: 05/28/2024 - 15:39 PM (PRF_PM8) 7.3.11

Par Value
Stated
Rate
April 30, 2024
Investment Status Report - Investments
Portfolio Management
Book Value
Maturity
Date
Current
Principal

CITY OF PLEASANTON
S&P
YTM
Moody'sCUSIP Investment # Issuer
Purchase
Date
Accrued Interest
At Purchase
Certificates of Deposit - Bank
FREMON1093-2 239,245.20 239,245.204.89009/21/2024SYS 04/21/2024 239,245.204.890 VCB1091-2 251,021.62 251,021.624.89004/11/2025SYS 1091 04/11/2024 251,021.624.890 490,266.82Certificates of Deposit - Bank Totals 490,266.820.004.890490,266.82 LAIF
LAIF5 74,500,000.00 74,500,000.004.272SYS5 74,500,000.004.272 74,500,000.00LAIF Totals 74,500,000.000.004.27274,500,000.00 Medium Term Notes
APPL6045 2,000,000.00 2,009,000.002.85005/11/2024037833CU2 Aaa Received05/03/2019 2,009,000.00AA2.753 PCAR6062 1,330,000.00 1,294,196.402.15008/15/202469371RQ25 A Received03/31/2020 1,294,196.40A2.808 APPL6048 1,040,000.00 1,040,000.001.80009/11/2024037833DM9 Aaa Received01/07/2020 1,040,000.00AA1.800 TOYOTA6046 1,600,000.00 1,599,984.002.00010/07/202489236TGL3 A Received10/24/2019 1,599,984.00A2.000 APPL6049 1,000,000.00 1,037,212.202.75001/13/2025037833DF4 Aaa01/13/2020 1,037,212.20AA1.965 3M6053 2,000,000.00 2,016,869.482.00002/14/202588579YBH3 A02/14/2020 2,016,869.48BBB1.823 XOM6056 3,000,000.00 3,145,587.002.70903/06/202530231GAF9 Aa Received03/11/2020 3,145,587.00AA1.690 TRU6058 2,000,000.00 1,969,486.001.50003/10/202589788JAA7 A Received03/13/2020 1,969,486.00A1.821 XOM6064 2,000,000.00 2,113,800.002.99203/19/202530231GBH4 Aa Received04/20/2020 2,113,800.00AA1.777 TOYOTA6067 3,000,000.00 2,959,140.000.80001/09/202689236THW8 A Received03/09/2021 2,959,140.00A1.090 APPL6065 2,000,000.00 1,996,860.000.70002/08/2026037833EB2 Aaa02/08/2021 1,996,860.00AA0.732 APPL6066 3,000,000.00 3,331,380.003.25002/23/2026037833BY5 Aaa02/23/2021 3,331,380.00AA0.981 JP6068 3,000,000.00 3,000,000.001.10006/22/202646632FSCO Aa06/22/2021 3,000,000.00A1.100 27,513,515.08Medium Term Notes Totals 27,513,515.080.001.59426,970,000.00 Federal Agency Issues - Coupon
FHLB3576 3,000,000.00 2,995,657.091.25012/21/20263130AQF65 Aaa12/22/2021 2,995,657.09AA1.280 2,995,657.09Federal Agency Issues - Coupon Totals 2,995,657.090.001.2803,000,000.00 Federal Agency Issues - Callable
FHLMC4535 3,000,000.00 2,998,950.000.70006/23/20253134GVZ68 Aaa06/23/2020 2,998,950.00AA0.707 FFCB4537 3,000,000.00 2,997,750.000.70006/30/20253133ELQ49 Aaa Received07/06/2020 2,997,750.00AA0.715 FNMA4538 3,250,000.00 3,248,862.500.70007/14/20253136G4YH0 07/14/2020 3,248,862.50AA0.707 FNMA4541 3,000,000.00 3,000,000.000.71007/22/20253136G4A45 Aaa07/22/2020 3,000,000.00AA0.710 FHLB4544 3,000,000.00 2,997,000.000.60008/27/20253130AJZ36 Aaa08/27/2020 2,997,000.00AA0.620 FHLMC4545 3,000,000.00 2,998,950.000.65009/09/20253134GWA55 Aaa09/09/2020 2,998,950.00AA0.657 FFCB4548 3,340,000.00 3,336,660.000.53009/29/20253133EMBJ0 Aaa Received10/05/2020 3,336,660.00AA0.550 FHLMC4547 3,000,000.00 3,000,000.000.55009/30/20253134GWW93 Aaa09/30/2020 3,000,000.00AA0.550 Portfolio PLST
CC
Run Date: 05/28/2024 - 15:39 PM (PRF_PMS) 7.3.11
Report Ver. 7.3.11

Par Value
Stated
Rate
April 30, 2024
Investment Status Report - Investments
Portfolio Management
Book Value
Maturity
Date
Current
Principal

CITY OF PLEASANTON
S&P
YTM
Moody'sCUSIP Investment # Issuer
Purchase
Date
Accrued Interest
At Purchase
Federal Agency Issues - Callable
FHLMC4549 3,000,000.00 2,997,600.000.55009/30/20253134GWWT9 Aaa Received10/07/2020 2,997,600.000.566 FHLMC4550 3,000,000.00 3,000,000.000.60010/28/20253134GW3F1 Aaa10/28/2020 3,000,000.000.600 FHLB4553 3,000,000.00 2,996,250.000.57011/25/20253130AKGD2 Aaa11/25/2020 2,996,250.00AA0.595 FNMA4552 3,000,000.00 3,000,000.000.60011/25/20253135GA3W9 Aaa11/25/2020 3,000,000.00AA0.600 FHLMC4554 3,000,000.00 3,000,000.000.62012/01/20253134GXDM3 Aaa12/01/2020 3,000,000.000.620 FHLB4555 3,000,000.00 3,000,000.000.62501/22/20263130AKQ74 Aaa01/22/2021 3,000,000.00AA0.625 FHLB4557 3,000,000.00 3,000,000.000.65001/28/20263130AKRN8 Aaa01/28/2021 3,000,000.00AA0.650 FNMA4556 3,000,000.00 3,000,000.000.55001/28/20263135G06R9 Aaa01/28/2021 3,000,000.00AA0.550 FHLB4558 3,000,000.00 3,000,000.000.60002/12/20263130AKXQ4 Aaa02/12/2021 3,000,000.00AA0.110 FHLB4560 3,000,000.00 3,000,000.000.62502/17/20263130AL3S1 Aaa02/17/2021 3,000,000.00AA0.625 FHLB4561 3,000,000.00 3,000,000.000.65002/24/20263130AL5X8 Aaa02/24/2021 3,000,000.00AA0.650 FHLB4562 3,125,000.00 3,122,500.000.60002/24/20263130AKXJ0 02/24/2021 3,122,500.00AA0.616 FHLB4563 3,000,000.00 3,000,000.000.75002/24/20263130ALCV4 02/24/2021 3,000,000.00AA0.750 FHLB4559 3,000,000.00 3,000,000.000.65002/26/20263130AKZ25 Aaa02/26/2021 3,000,000.00AA0.650 FHLB4572 3,000,000.00 2,989,560.000.85002/26/20263130ALGR9 Aaa Received03/15/2021 2,989,560.00AA0.922 FHLB4574 3,000,000.00 2,985,960.000.85002/26/20263130ALGR9 Aaa Received03/18/2021 2,985,960.00AA0.947 FHLB4577 3,000,000.00 2,982,510.000.85002/26/20263130ALGR9 Aaa Received03/22/2021 2,982,510.00AA0.971 FHLB4579 3,000,000.00 2,978,517.000.85002/26/20263130ALGR9 Aaa Received03/31/2021 2,978,517.00AA1.000 FHLB4565 3,000,000.00 3,000,000.000.80003/16/20263130ALDN1 Aaa03/16/2021 3,000,000.00AA0.800 FHLB4569 3,000,000.00 3,000,000.000.87503/23/20263130ALGC2 Aaa03/23/2021 3,000,000.00AA0.875 FHLB4576 3,000,000.00 2,987,700.000.87503/23/20263130ALGC2 Aaa03/23/2021 2,987,700.00AA0.959 FFCB4575 3,000,000.00 3,000,000.001.05003/25/20263133EMUK6 Aaa03/25/2021 3,000,000.00AA1.050 FHLB4571 3,000,000.00 3,000,000.001.00003/30/20263130ALMM3 Aaa03/30/2021 3,000,000.00AA1.000 FHLB4578 3,000,000.00 2,998,050.000.98003/30/20263130ALNT7 Aaa03/30/2021 2,998,050.00AA0.993 FHLB4581 3,000,000.00 2,996,250.001.00003/30/20263130ALMM3 Aaa Received04/05/2021 2,996,250.00AA1.026 FHLB4580 3,000,000.00 2,995,500.001.02004/15/20263130ALUC6 Aaa04/15/2021 2,995,500.00AA1.051 FHLB4585 2,795,000.00 2,795,000.001.02005/19/20263130AMCL4 Aaa Received05/20/2021 2,795,000.00AA1.020 FHLB4587 3,000,000.00 2,998,500.001.00005/26/20263130AMH62 Aaa05/26/2021 2,998,500.00AA1.010 FHLB4588 3,000,000.00 2,998,950.000.98005/26/20263130AMGW6 Aaa05/26/2021 2,998,950.00AA0.987 FHLB4590 2,750,000.00 2,746,562.500.87505/26/20263130AMHB1 Aaa Received06/02/2021 2,746,562.50AA0.901 FHLB4591 1,500,000.00 1,500,000.001.00005/26/20263130AMH62 Aaa Received06/02/2021 1,500,000.00AA1.000 FFCB4595 3,000,000.00 2,997,000.000.90006/15/20263133EMH21 Aaa Received06/24/2021 2,997,000.00AA0.921 FHLB4592 3,000,000.00 3,000,000.001.03006/30/20263130AMSL7 Aaa06/30/2021 3,000,000.00AA1.030 FHLB4594 3,000,000.00 3,000,000.001.07006/30/20263130AMYA4 Aaa06/30/2021 3,000,000.00AA1.070 FHLB4596 1,500,000.00 1,500,000.001.00006/30/20263130AN2Q2 Aaa06/30/2021 1,500,000.00AA1.000 FHLB4597 3,000,000.00 2,999,250.001.02007/14/20263130AMWK4 Aaa07/14/2021 2,999,250.00AA1.025 FHLB4598 3,000,000.00 2,983,500.000.92009/30/20263130AP2P9 Aaa09/30/2021 2,983,500.00AA1.033 Portfolio PLST
CC
Run Date: 05/28/2024 - 15:39 PM (PRF_PMS) 7.3.11

Par Value
Stated
Rate
April 30, 2024
Investment Status Report - Investments
Portfolio Management
Book Value
Maturity
Date
Current
Principal

CITY OF PLEASANTON
S&P
YTM
Moody'sCUSIP Investment # Issuer
Purchase
Date
Accrued Interest
At Purchase
Federal Agency Issues - Callable
FHLB4599 3,000,000.00 2,997,750.001.07010/14/20263130APC94 Aaa10/14/2021 2,997,750.00AA1.085 FHLB4600 530,000.00 526,947.201.30011/24/20263130APU78 Aaa Received12/09/2021 526,947.20AA1.421 FHLB4601 1,840,000.00 1,829,401.601.30011/24/20263130APUR4 Aaa Received12/09/2021 1,829,401.60AA1.421 FHLB4602 3,000,000.00 2,988,000.001.37512/01/20263130APVC6 Aaa Received12/09/2021 2,988,000.00AA1.459 FHLB4605 3,000,000.00 2,999,250.001.42012/29/20263130AQG80 Aaa Received01/03/2022 2,999,250.00AA1.425 FHLB4606 3,000,000.00 2,982,750.001.42012/29/20263130AQG80 Aaa Received01/10/2022 2,982,750.00AA1.541 FHLB4603 3,000,000.00 3,000,000.001.37012/30/20263130AQEC3 Aaa12/30/2021 3,000,000.00AA1.370 FHLB4604 3,000,000.00 2,998,500.001.37512/30/20263130AQEF6 Aaa12/30/2021 2,998,500.00AA1.385 FHLB4607 3,000,000.00 2,975,010.001.75001/28/20273130AQLD3 Aaa Received02/08/2022 2,975,010.00AA1.926 FHLB4608 3,000,000.00 2,995,500.002.08002/25/20273130AQW66 Aaa Received03/08/2022 2,995,500.00AA2.112 158,420,440.80Federal Agency Issues - Callable Totals 158,420,440.800.000.916158,630,000.00 Supranationals
IFC7000 1,000,000.00 980,200.000.50002/26/202645950VPS9 Aaa Received06/28/2021 980,200.00AAA0.935 980,200.00Supranationals Totals 980,200.000.000.9351,000,000.00 264,900,079.79Investment Totals 264,900,079.790.00264,590,266.82 1.942 Portfolio PLST
CC
Run Date: 05/28/2024 - 15:39 PM (PRF_PMS) 7.3.11

Stated
Rate
Transaction
Date
April 1, 2024 through April 30, 2024
Activity By Type
Balance
Portfolio Management

CITY OF PLEASANTON
CUSIP Investment # Issuer
Purchases
or Deposits
Redemptions
or Withdrawals
Certificates of Deposit - Bank
Fremont Bank1093 0.004.000 04/21/2024 230,000.00SYS 1093 Fremont Bank1093-2 239,245.204.890 04/21/2024 0.00SYS
United Business Bank1091 0.000.500 04/11/2024 261,206.57UBB1091 United Business Bank1091-2 251,021.624.890 04/11/2024 0.00SYS 1091 491,206.57 490,266.82Subtotal 490,266.82
LAIF (Monthly Summary)
LOCAL AGENCY INVESTMENT FUND5 25,500,000.004.272 0.00SYS5

0.00 74,500,000.00Subtotal 25,500,000.00
Fidelity - Government Fund (Monthly Summary)

0.00Subtotal
Medium Term Notes
27,513,515.08Subtotal
Federal Agency Issues - Coupon
2,995,657.09Subtotal
Federal Agency Issues - Callable
158,420,440.80Subtotal
Supranationals
980,200.00Subtotal
264,900,079.79Total 491,206.5725,990,266.82
Portfolio PLST
CC
Run Date: 05/28/2024 - 15:39 PM (PRF_PM3) 7.3.11
Report Ver. 7.3.11

April 2023 through April 2024
Activity Summary
Month
Portfolio Management
End Year
Number of
Securities
Average
Balance
360
Equivalent
365
Equivalent
Managed
Pool
Rate
Average
Term
Average
Days to Maturity

CITY OF PLEASANTON
Number
of Investments
Purchased
Number
of Investments
Redeemed
Yield to Maturity
250,326,071.57April 2023 81 1,359 7511.496 1.516 2.870 1 2 257,676,478.70May 2023 79 1,368 7381.506 1.527 2.993 0 1 255,218,414.18June 2023 78 1,384 7231.530 1.551 3.167 0 0 241,332,522.47July 2023 78 1,523 7731.392 1.411 3.305 0 1 226,572,122.96August 2023 75 1,547 7671.363 1.382 3.434 0 1 222,199,727.26September 2023 74 1,589 7611.319 1.338 3.534 0 0 216,627,684.25October 2023 74 1,612 7441.304 1.322 3.670 0 0 215,466,393.93November 2023 74 1,612 7181.323 1.342 3.843 0 0 230,337,361.67December 2023 74 1,386 5941.688 1.711 3.929 0 0 247,834,511.04January 2024 74 1,403 5801.679 1.702 4.012 0 1 243,504,467.82February 2024 73 1,426 5661.665 1.688 4.122 0 0 240,078,438.89March 2024 73 1,444 5491.665 1.688 4.272 0 0 254,330,644.64April 2024 75 1,305 4751.915 1.942 4.272 2 2 Average 238,540,656.15 1.526% 1.548% 3.648 0 1 1,458 67276 Portfolio PLST
CC
Run Date: 05/28/2024 - 15:39 PM (PRF_PM4) 7.3.11
Report Ver. 7.3.11

April 2023 through April 2024
Distribution of Investments By Type
Portfolio Management

CITY OF PLEASANTON
AverageMayApril June
2023 2023 by Period
AugustJuly September
2023 2023
NovemberOctober December
2023 2023
January March
2024 2024
April
2024Security Type
February
2024202320232023

0.2 0.20.2Certificates of Deposit - Bank 0.2 0.20.2 0.2 0.20.2 0.2 0.20.2 0.2 0.2% Certificates of Deposit - S & L

24.5 23.624.9LAIF 14.7 12.416.1 11.1 23.611.1 21.5 20.522.7 28.1 19.6% Fidelity - Government Fund

MONEY MARKET (GENERAL)
Managed Pool Accounts -4
Passbook/Checking Accounts

12.3 12.412.7Medium Term Notes 12.7 13.113.2 13.3 11.413.3 11.4 11.511.2 10.4 12.2% Bankers Acceptances
Commercial Paper - Discount

1.2 1.21.2Federal Agency Issues - Coupon 1.3 1.41.3 1.4 1.21.4 1.2 1.31.2 1.1 1.3% Federal Agency Issues - Discount
Treasury Securities - Coupon
Treasury Securities - Discount

61.5 62.360.7Federal Agency Issues - Callable 70.6 72.568.8 73.5 63.373.5 65.4 66.264.3 59.8 66.3%

0.4 0.40.4Supranationals 0.4 0.50.4 0.5 0.40.5 0.4 0.40.4 0.4 0.4% Miscellaneous Securities - Discount
Portfolio PLST
CC
Run Date: 05/28/2024 - 15:39 PM (PRF_PM5) 7.3.11
Report Ver. 7.3.11

April 30, 2024
Interest Earnings Summary
Month EndingApril 30 Fiscal Year To Date
Portfolio Management

CITY OF PLEASANTON
CD/Coupon/Discount Investments:
154,429.53Interest Collected
Plus Accrued Interest at End of Period
Less Accrued Interest at Beginning of Period
477,020.64
( 462,383.10)
1,759,692.28
477,020.64
( 525,527.83)
Less Accrued Interest at Purchase During Period ( 0.00) ( 0.00) Interest Earned during Period
Adjusted by Capital Gains or Losses
Earnings during Periods
169,067.07

0.00 1,711,185.09
-17,394.64
169,067.07 1,693,790.45
Pass Through Securities:

0.00Interest Collected
Plus Accrued Interest at End of Period
Less Accrued Interest at Beginning of Period

0.00 ( 0.00)

0.00 0.00
( 0.00)
Less Accrued Interest at Purchase During Period ( 0.00) ( 0.00) Interest Earned during Period
Adjusted by Premiums and Discounts
Adjusted by Capital Gains or Losses
Earnings during Periods

0.00 0.00

0.00 0.00

0.00 0.00

0.00 0.00
Cash/Checking Accounts:
569,245.05Interest Collected
Plus Accrued Interest at End of Period
Less Accrued Interest at Beginning of Period
194,627.36
( 539,387.59)
1,672,485.30
194,627.36
( 437,431.98)
Interest Earned during Period 224,484.82 1,429,680.68
Total Interest Earned during Period
Total Capital Gains or Losses
Total Earnings during Period
393,551.89

0.00 3,140,865.77
-17,394.64
393,551.89 3,123,471.13
Portfolio PLST
CC
Run Date: 05/28/2024 - 15:39 PM (PRF_PM6) 7.3.11
Report Ver. 7.3.11

Item #9

CITY COUNCIL AGENDA REPORT

June 18, 2024
Police

TITLE: APPROVE THE THIRD AMENDMENT TO THE EXISTING PROFESSIONAL

SERVICES AGREEMENT WITH ALL CITY MANAGEMENT SERVICES FOR SCHOOL CROSSING GUARD SERVICES FOR THE 2024/2025 SCHOOL YEAR BY INCREASING THE TOTAL AMOUNT BY $663,327 AND EXTENDING THE TERM THROUGH FISCAL YEAR 2024/25 FOR A TOTAL AMOUNT OF
$2,951,781

SUMMARY
At the City Council's direction, staff is presenting a one-year extension to the current professional services agreement with All City Management Services for crossing guard services. The current agreement, which has been in place since July 2019, expires on July 31, 2024. During the one-year extension period, staff will explore potential cost-sharing scenarios with the Pleasanton Unified School District (District). The cost for the one-year extension for Fiscal Year 2024/25 is $663,327, for a total contract amount of $2,951,781 over six years.

RECOMMENDATION
Approve the third amendment to the professional services agreement with All City Management Services for school crossing guard services for the 2024/2025 school year by extending the term through Fiscal Year 2024/25 and increasing the total amount of the contract by $663,327 for a total amount of $2,951,781.

BACKGROUND
All City Management Services has been responsible for providing crossing guard services since 1995, including hiring, training, deployment, supervision, and management of guards, as well as equipment maintenance and site monitoring. Currently, there are a total of 22 school crossing guard locations, all of which are staffed by employees of All City Management Services.

The City and All City Management Services established the current Professional Services Agreement for crossing guard services on July 1, 2019, with two subsequent contract amendments in 2022. The agreement expires on July 31, 2024. Under this and prior agreements, the City pays 100 percent of the cost of providing this community service.

At a City Council meeting on March 19, 2024, staff shared a presentation about the City's financial forecasting model, projected fiscal deficit and proposed revenue options to enhance financial sustainability. As part of that discussion, staff shared a recommendation regarding proposed reductions to discretionary funding, including exploring a cost-sharing model with the Pleasanton Unified School District (District) for services including crossing guards and school resource officers (SROs). At that meeting, the City Council directed staff to extend the crossing guard contract for one additional year while staff negotiated potential cost-sharing for this service with the District.

DISCUSSION
The City currently pays 100 percent of the cost of providing crossing guard services, and the cost of providing this service has increased significantly. The total annual cost of the contract for FY 2019/20, the first year of the current contract, was approximately $458,000 per year, including hourly costs and contingency. The total cost for FY 2023/24 was approximately $565,000 including hourly costs and contingency.

The recent increase in the minimum wage for fast food employees under State Assembly Bill AB1228 to $20.00 per hour directly affects the availability of workers for crossing guard duties.

To remain competitive and retain existing employees, All City Management Services has increased its hourly billing rate to $33.38, resulting in an estimated annual cost of $663,327 for the projected hours, including contingency, from July 1, 2024, to July 31, 2025. This represents a 45 percent increase from the original contract year 2019, and a 17 percent increase from last fiscal year.

EQUITY AND SUSTAINABILITY
As a full-service municipality, the City provides a wide range of services and programs to meet the needs of all members of the community.

OUTREACH
No outreach was conducted, as this item is a routine matter of City business.

STRATEGIC PLAN ALIGNMENT
This action advances the ONE Pleasanton strategic goal of Safeguarding Our City and prioritizing community safety.

FISCAL IMPACT
The funds for this agreement were included in the General Fund budget in FY 2024/25. The total compensation and reimbursement for costs will not exceed $2,903,425 during the six-year agreement; this includes an 8 percent contingency for FY 2024/25 to allow the City to amend sites and hours if desired.

Prepared by: Submitted by: Approved by:

Kurt Schlehuber, Police
Captain
Gina Anderson, Interim Police Chief

Gerry Beaudin, City
Manager

Attachments:

1. Third Amendment with All City Management Services

Third Amendment Page 1

THIRD AMENDMENT TO AGREEMENT
This Third Amendment to Agreement ("Third Amendment") is entered into this July 1, 2024, by the City of Pleasanton ("City") and All City Management Services ("Contractor”).

Whereas, on July 1, 2019, the City and Contractor entered into a Professional Services Agreement for crossing guard services, as amended by the First Amendment dated August 1, 2022, and the Second Amendment dated August 15, 2023 (collectively the “Agreement”); and Whereas, the parties desire to update the Agreement to include a new Exhibit A which will increase the total estimated hours and associated total cost to reflect actual services provided by Contractor.

Whereas, the parties desire to extend the term of the Agreement for one year.

Now, therefore, in exchange for valuable consideration, the receipt of which is hereby acknowledged, the parties agree as follows:

1. Section 1 of the Agreement, “Contractor’s Services,” is amended to provide for a new Exhibit A, attached and incorporated, for an updated and increased total hours.

2. Section 3 of the Agreement, “Term,” is amended to read: This contract shall commence on the date written above and shall expire on July 31, 2025, unless terminated earlier in accordance with Section below.

3. Section 4 of the Agreement, “Compensation,” is amended to read: Total compensation for services and reimbursement for costs shall not exceed $2,951,780 during this six-year agreement (which includes an 8% contingency for FY 24/25 hours to allow the City to add sites or hours if desired).

4. This amendment may be executed in multiple counterparts, each of which shall be an original and all of which together shall constitute one agreement. Counterparts may be delivered via facsimile, electronic mail (including pdf or any electronic signature complying with U.S. federal E-Sign Act of 2000 (15 U.S. Code §7001 et seq.), California Uniform Electronic Transactions Act (Cal. Civil Code §1633.1 et seq.), or other applicable law) or other transmission method, and any counterpart so delivered shall be deemed to have been duly and validly delivered and be valid and effective for all purposes.

5. All other terms and conditions of the Agreement shall remain in full force and effect.

In witness whereof, authorized representatives of the parties have executed this Second Amendment to the Agreement as of the date and year first above written.

CITY OF PLEASANTON CONTRACTOR
_____________________________ By: __________________________ Gerry Beaudin, City Manager Signature
Attachment 1

Third Amendment Page 2

__________________________
P r i n t n a m e

Title: __________________________
ATTEST:

_____________________________ [If Consultant is a corporation, signatures must comply Jocelyn Kwong, City Clerk with California Corporations Code §313]

APPROVED AS TO FORM:

By: __________________________
_____________________________ Signature
Daniel G. Sodergren, City Attorney
__________________________
P r i n t n a m e

Title: __________________________

Third Amendment Page 3

EXHIBIT A
Compensation
See Exhibit B and C “Client Worksheets” for a complete breakdown of the information in the table/summary below.

Total Estimated
Hours
Hourly Rate Total Cost
FY 19/20 20,016
$ 20.42 $ 408,726.72
FY 20/21 20,016 $ 21.72 $ 434,747.52
FY 21/22 20,016 $ 23.22 $ 464,771.52
FY 22/23 19,260 $ 24.72 $ 476,107.20
FY 23/24 19,260 $ 26.72 $ 514,627.20
FY 24/25 18,108 $ 33.38 $ 604,445.04
$ 2,903,425.20
Contingency: The City is including an 8% contingency for the FY 24/25 expenses ($604,445), totaling $48,355, to allow for additional crossing guard sites to be added or hours to be adjusted as requested. If the City desires to add additional sites, the City will send a letter to the Contractor advising of the change and consistent with the hourly rates shown in the table above. With the contingency, the not-to-exceed amount for the extended six-year term is $2,951,780.

Scope of Contractor’s Services
See attached Exhibit B “All City Management Services Inc. Client Worksheet 2024-2025”

All City Management Services Inc.

Billing Rate for 2024/2025: $33.38
KEY:
36 144 5184 $33.38 = $173,041.92
6 days/yr X Hourly Billing Rate
24 36 864 $33.38 = $28,840.32
days/yr X Hourly Billing Rate
4 180 720 $33.38 = $24,033.60
10 days/yr X Hourly Billing Rate
15 144 2160 $33.38 = $72,100.80
3 days/yr X Hourly Billing Rate
12 36 432 $33.38 = $14,420.16
days/yr X Hourly Billing Rate

12.75 144 1836 $33.38 = $61,285.68
3 days/yr X Hourly Billing Rate
12 36 432 $33.38 = $14,420.16
days/yr X Hourly Billing Rate
18,108 $604,445.04TOTAL PROJECTED HOURS TOTAL ANNUAL PROJECTED COST Traditional Calendar:

For sites with one regularly scheduled early release day/week, use 144 regular days and 36 minimum days Client Worksheet 2024-2025
3901Department:

Pleasanton Police Department
4833 Bernal Ave
For sites with no regularly scheduled early release days, use 180 regular days Pleasanton, CA  94566
Sites with traditional calendar:

Total Hrs/day X
Sites with ER at 4.0 hrs Total Hrs/day X
Sites at 6.0 hrs per day
Sites with ER at 4.0 hrs Total Hrs/day X
Sites at 4.0 hrs per day Total Hrs/day X
Site at 5.0 hrs per day Total Hrs/day X
Site with ER at 4.0 hrs Total Hrs/day X
Sites at 4.25 hrs per day Total Hrs/day X
Exhibit B

Item #10

CITY COUNCIL AGENDA REPORT

June 18, 2024
Police

TITLE: APPROVE THE FIRST AMENDMENT TO THE MEMORANDUM OF

UNDERSTANDING WITH THE PLEASANTON UNIFIED SCHOOL DISTRICT FOR A TERM OF ONE YEAR, THROUGH JUNE 30, 2025, FOR THE SCHOOL

RESOURCE OFFICER PROGRAM

SUMMARY
In 2021, the City entered into a Memorandum of Understanding (MOU) with the Pleasanton Unified School District (District) to formalize the relationship and articulate the roles and responsibilities of both parties and the School Resource Officer (SRO) program. At the City Council's direction, and based on the positive outcomes achieved through this formalized partnership, staff recommends the City Council approve the first amendment to the MOU to extend the term for one additional year, for a total term of four years. The estimated annual cost of the SRO program, when fully staffed with two full-time equivalent (FTE) officers, and accounting for supervision, is estimated at approximately $750,000.

RECOMMENDATION
Approve the First Amendment to the Memorandum of Understanding with the Pleasanton Unified School District for a Term of One Year, through June 30, 2025, for the School Resource Officer program

BACKGROUND
In mid-2020, the City Council hosted several special meetings to listen to and engage with the community around policing in Pleasanton. During these meetings, community members expressed a desire to understand the purpose of the School Resource Officer (SRO) program and its role in the Pleasanton community. The result of these discussions was to draft a Memorandum of Understanding (MOU) between the City and Pleasanton Unified School District for the use of SROs. The MOU was formally adopted in November 2021 with a three- year term. The current MOU term expires on June 30, 2024. Under the current agreement, the City pays 100 percent of the cost of providing the SRO program in schools.

At a City Council meeting on March 19, 2024, staff shared a presentation about the City's financial forecasting model, projected fiscal deficit and proposed revenue options to enhance financial sustainability. As part of that discussion, staff shared a recommendation regarding proposed reductions to discretionary funding, including exploring a cost-sharing model with the Pleasanton Unified School District (District) for services including, among other items, SROs and crossing guards. At that meeting, the City Council directed staff to extend those agreements for one additional year while staff negotiated cost-sharing with the District.

DISCUSSION
Over the initial three-year term of the MOU, the Police Department has provided program updates at various public meetings to share how the terms of the MOU have been

implemented and the positive outcomes that have been achieved. Overall, there has been a successful outcome as custodial arrests of juveniles and mental health involuntary commitments have decreased. Additional improvements have been noted by shifting away from a uniformed SRO responding to students experiencing mental health crises as that role is being served by the City's Alternate Response Unit (ARU), and the removal of police officers from school discipline issues, which are now being handled by the District.

The primary goals of the SRO program have been met over the three-year term of the MOU.

These goals include:

1. To provide support and partnership between the City and the District to promote a safe atmosphere for students and staff.

2. To develop greater understanding and bridge support and build relationships between the police and students.

3. To balance enforcement needs and create support and confidence.

4. To reduce the number of mental health detentions under 5150 or 5585 of the Welfare and Institutions Code.

Several surveys were distributed by the District to measure the support for the program and identify potential areas of improvement. Overwhelming support for the program was reported by the survey and no recommendations for any changes were made.

The City currently pays all costs associated with the SRO program, which, when fully staffed, includes two (2) FTE officers and 0.5 FTE sergeant (supervisory) at a total estimated annual cost of approximately $750,000. Due to staffing limitations, the program is currently only staffed with one (1) FTE officer.

EQUITY AND SUSTAINABILITY
As a full-service municipality, the City provides a wide range of services and programs to meet the needs of all members of the community. The SRO program contributes to the safety of the community’s youth, aligning with the City’s commitment to providing essential services to all residents.

OUTREACH
Several surveys were distributed by the Pleasanton Unified School District to parents, faculty/staff, and students for feedback on the SRO program. The details of the survey results were provided at the February 13, 2024, City/District Liaison Committee meeting. There was support for continuing the program and extending the MOU with no recommended changes, and with direction to explore cost-sharing with the District.

STRATEGIC PLAN ALIGNMENT
This action advances the ONE Pleasanton strategic goal of Safeguarding Our City, and prioritizing community safety.

FISCAL IMPACT
The cost to the City for providing 2 FTE police officers to the school district with 0.5 FTE sergeant for supervision is included in the FY 2024/25 General Fund budget. The estimated

total cost of the program when fully staffed is approximately $750,000 per year.

Prepared by: Submitted by: Approved by:

Kurt Schlehuber, Police
Captain
Gina Anderson, Interim Police Chief

Gerry Beaudin, City
Manager

Attachments:

1. First Amendment to MOU with the Pleasanton Unified School District

First Amendment Page 1
Attachment 1

FIRST AMENDMENT TO AGREEMENT BETWEEN PLEASANTON UNIFIED

SCHOOL DISTRICT AND CITY OF PLEASANTON
This First Amendment to Agreement is entered into this ____ day of __________ 2024 by and between the Pleasanton Unified School District, Pleasanton California, hereinafter referred to as DISTRICT, and the City of Pleasanton, a municipal corporation, hereinafter referred to as CITY.

WHEREAS , on November 22, 2021, the CITY and DISTRICT entered into an agreement to allocate a total of two officer positions to the School Resource Officer Program; WHEREAS , the original agreement was for a term beginning on July 1, 2021 and ending on June 30, 2024; and
WHEREAS , the CITY and DISTRICT wish to extend the term of the 2021 agreement by one year to end on June 30, 2025.

NOW, THEREFORE, the parties to this Agreement do mutually agree as follows:

1. Section D of the Agreement, "TERM" is amended to read:

The term, of this Agreement is four years beginning July I, 2021 through June 30, 2025 (fiscal year for both parties). Police services at the above schools will be provided during the school year, including summer school sessions. Options to renew this Agreement shall be in writing and consent of the CITY and the DISTRICT as permitted by the law.

This Agreement may be terminated with thirty-days (30) notice. In writing, by either the CITY or the DISTRICT.

2. This amendment may be executed in multiple counterparts, each of which shall be an original and all of which together shall constitute one agreement. Counterparts may be delivered via facsimile, electronic mail (including pdf or any electronic signature complying with U.S. federal E-Sign Act of 2000 (15 U.S. Code §7001 et seq.), California Uniform Electronic Transactions Act (Cal. Civil Code §1633.1 et seq.), or other applicable law) or other transmission method, and any counterpart so delivered shall be deemed to have been duly and validly delivered and be valid and effective for all purposes.

3. All other terms and conditions of the Agreement shall remain in full force and effect.

IN WITNESS WHEREOF, the CITY and DISTRICT have caused the Agreement to be signed on their behalf by duly authorized representatives on the dates set forth below.

By: _________________________________ ______________________ City Manager Date

First Amendment Page 2
_________________________________ ______________________ Chief of Police Date
Approved as to form:

By: _________________________________ ______________________ City Attorney Date
_________________________________ ______________________ City Clerk Date
By: _________________________________ ______________________ Superintendent Date

Item #11

CITY COUNCIL AGENDA REPORT

June 18, 2024
Police

TITLE: APPROVE THE THIRD AMENDMENT TO THE PROFESSIONAL SERVICES AGREEMENT WITH BONITA HOUSE INC. TO INCREASE THE AMOUNT BY $347,972 AND EXTEND THE TERM FOR ONE YEAR, THROUGH JUNE 20, 2025,

TO PROVIDE CLINICIAN SERVICES FOR THE ALTERNATE RESPONSE UNIT, FOR A TOTAL NOT-TO-EXCEED AMOUNT OF $1,123,916 OVER THE THREE-

YEAR TERM

SUMMARY
In July 2022, following a Request for Proposals process the City entered into a professional services agreement with Bonita House, Inc. to provide clinician services for the Alternate Response Unit. The Alternate Response Unit program has been successful since its inception such that staff is recommending an extension of the agreement with Bonita House, Inc., to provide clinician services to the City.

RECOMMENDATION
Approve the third amendment to the Professional Services Agreement with Bonita House Inc. to increase the amount by $347,972 and extend the term for one year, through June 30, 2025, to continue to provide clinician services for the Alternate Response Unit for a total not-to- exceed amount of $1,123,916 over the three-year term, and authorize the City Manager to execute the third amendment.

BACKGROUND
In mid-2020, the City Council hosted a series of listening sessions and special City Council meetings focused on policing in Pleasanton. Through these meetings, the City Council directed staff to present a proposal for an Alternate Mental Health Response Program. At its meeting on November 16, 2021, the City Council meeting approved a recommendation to create the Alternate Response Unit program. This program pairs a non-uniformed officer with a mental health clinician to respond to calls for service involving individuals suffering from a mental health crisis as well as the unhoused population in Pleasanton.

A Request for Proposals (RFP) process was conducted through which Bonita House, Inc. was selected to provide clinician services to partner with the Police Department in implementing the Alternate Response Unit (ARU).

DISCUSSION
The initial term of the professional services agreement with BHI was for two-years from July 1, 2022 through June 30, 2024. Staff is recommending a first amendment to this professional services agreement to increase the agreement by $347,972 and to extend the term by one year. The total not-to-exceed compensation and reimbursement for costs shall not exceed $1,123,916 during the three-year term.

This amendment will continue the City's positive partnership with Bonita House, Inc. (BHI). The scope of work outlined in the agreement would remain unchanged. Throughout the length of the existing agreement, BHI has complied and followed through with all requirements and has been an excellent partner with the City. BHI has also provided data to support the ARU and its work in Pleasanton as well as ensuring that program goals are met. Notably, in 2023 the ARU reached full staffing as it continued to respond to calls within the schools and the community.

As more people become aware of this resource, the ARU increased its follow-up efforts by bringing services to those in need. The number of mental health commitments (5150/5585 Welfare and Institutions Code) for the city was reduced to 116 in 2023 - 94 adults and 22 juveniles; this reduction is due in part to connecting the most appropriate resources as the situation requires. In 2023, the ARU diverted 362 calls from patrol officers, co-responded with a patrol on 236 calls, and made 241 proactive contacts.

BHI also assisted in the Point in Time count in January 2024. Continuation of this agreement means the ARU will continue to provide the same level of service over the coming Fiscal Year 2024/25. Additionally, staff has participated in the “Crisis Academy” hosted by BHI, which includes curriculum on dealing with those in a mental health crisis from a medical standpoint.

EQUITY AND SUSTAINABILITY
As a full-service municipality, the City provides a wide range of services and programs to meet the needs of all members of the community. The Alternate Response Unit program enhances the City's ability to provide wrap-around services for the unhoused population as well as those suffering from a mental health crisis, aligning with the City’s commitment to providing essential services to all residents.

OUTREACH
No outreach was conducted, as this item is a routine matter of City business.

STRATEGIC PLAN ALIGNMENT
This action advances the ONE Pleasanton strategic goal of Safeguarding Our City and prioritizing community safety.

FISCAL IMPACT
Funds for this agreement are in the General Fund budget in FY2024/25. Funding for this program beyond FY 2024/25 will be subject to future consideration by the City Council. The total compensation and reimbursement for costs shall not exceed $1,123,916 during the three- year agreement.

Prepared by: Submitted by: Approved by:

Kurt Schlehuber, Police
Captain
Gina Anderson, Interim Police Chief

Gerry Beaudin, City
Manager

Attachments:

1. Third Amendment with Bonita House

Third Amendment Page 1

THIRD AMENDMENT TO AGREEMENT

This Third Amendment to Agreement ("Third Amendment") is entered into this 1st day of July 2024 by the City of Pleasanton ("City") and Bonita House, Inc. ("Consultant”)

Whereas, on July 1, 2022, the City and Consultant entered into a Professional Services Agreement for Consultant to provide mental health clinicians services in the field when the City’s Police Department receives certain crisis calls, as amended by the First Amendment dated February 1, 2023, and the Second Amendment dated September 1, 2023 (collectively the “Agreement”); and

Whereas, the parties desire to extend the Agreement to a third year.

Now, therefore, in exchange for valuable consideration, the receipt of which is hereby acknowledged, the parties agree as follows:

1. Section 3 of the Agreement, “Term,” is amended to read: This contract shall commence on the date written above and shall expire on June 30, 2025.

2. Section 4 of the Agreement, “Compensation,” is amended to read: Total compensation for services and reimbursement for costs shall not exceed $1,123,916.

3. Exhibit A of the Agreement is amended to include FY 24/25 Total Yearly Cost.

4. This amendment may be executed in multiple counterparts, each of which shall be an original and all of which together shall constitute one agreement. Counterparts may be delivered via facsimile, electronic mail (including pdf or any electronic signature complying with U.S. federal E-Sign Act of 2000 (15 U.S. Code §7001 et seq.), California Uniform Electronic Transactions Act (Cal. Civil Code §1633.1 et seq.), or other applicable law) or other transmission method, and any counterpart so delivered shall be deemed to have been duly and validly delivered and be valid and effective for all purposes.

5. All other terms and conditions of the Agreement shall remain in full force and effect.

In witness whereof, authorized representatives of the parties have executed this Third Amendment to the Agreement as of the date first above written.

CITY OF PLEASANTON CONSULTANT

_____________________________ By: __________________________ Gerry Beaudin, City Manager Signature

__________________________
P r i n t n a m e

Title: __________________________

Third Amendment Page 2
[If Contractor or Consultant is a corporation,
signatures must comply with California
Corporations Code §313]

ATTEST:

_____________________________
Jocelyn Kwong, City Clerk

APPROVED AS TO FORM:

By: __________________________
_____________________________ Signature
Daniel G. Sodergren, City Attorney
__________________________
P r i n t n a m e

Title: __________________________

Rev. 3/23

EXHIBIT A

Compensation

See attached “Scope of Services” for a complete breakdown of the information in the table/summary below.

Total Yearl
y Cost
FY 22/23 $ 400,972
FY 23/24 $ 374,972
FY 24/25 $ 347,972
$1,123,916

DocuSign Envelope ID: 8A304B85-FEC2-464C-990D-A290711C1FAF DocuSign Envelope ID: 28FA2C60-8B59-47E4-98BF-D6F9900D6E6A

DocuSign Envelope ID: 8A304B85-FEC2-464C-990D-A290711C1FAF DocuSign Envelope ID: 28FA2C60-8B59-47E4-98BF-D6F9900D6E6A

Exhibit B
DocuSign Envelope ID: 8A304B85-FEC2-464C-990D-A290711C1FAF DocuSign Envelope ID: 28FA2C60-8B59-47E4-98BF-D6F9900D6E6A

DocuSign Envelope ID: 8A304B85-FEC2-464C-990D-A290711C1FAF DocuSign Envelope ID: 28FA2C60-8B59-47E4-98BF-D6F9900D6E6A

Scope of Services

We are delighted to propose a model for the ARMH Unit that is designed to meet the needs of ALL community members in the city of Pleasanton. We have a team of experienced crisis clinicians who currently operate the Community Assessment and Transport Team (CATT) and believe we have the experience to be successful in serving the community of Pleasanton. Our team of behavioral health clinicians will be 100% field-based and fully equipped with several advanced technologies with the ability to transport individuals to alternative disposition sites to meet their current needs. In our experience this will reduce the need for a 5150/5585 for individuals who are in crisis solely due to having a lack of immediate care and referral options. It is our goal to provide calming patient-centered sensory-management behavioral health and comfort interventions while enroute. We believe that this multimodal and holistic approach to assisting individuals in crisis will result in a higher degree of client satisfaction with emergency psychiatric care. Further, it will greatly increase their chances of accessing the least restrictive environment needed to recover from their crisis.

Our team will use Professional Assault Crisis Training (Pro-ACT) as a guide for crisis intervention. All clinicians will be trained by certified Pro-ACT trainers for common issues contributing to psychiatric emergencies and how to manage crises in a variety of settings. Our clinicians will all be 5150/5585 certified in Alameda County and go through extensive training in crisis response through our current CATT program including but not limited to cultural humility, vicarious trauma, working with adolescent and minors, working in school-based settings, motivational interviewing, brief assessment and intervention, crisis de-escalation and documentation. The CATT program trainings will be available to the City of Pleasanton officers.

Clinicians hired for this project will be selected for their professional ability and experience in managing crises that occur across the lifespan. On hiring, and on an annual basis, staff will participate in a formal training program in Pro-ACT crisis model and assessment process, trauma-informed care, working with minors in school-based settings, community resources and linkage processes, and other topics identified above. We will also coordinate training activities with the County's training department and collaborate with ARMH’s officers to identify areas of interest and need for ongoing training.

Documentation will be completed during any available downtime within a service and immediately afterward at the destination site in most cases, with any remaining documentation and follow-up reserved for the end of the shift. It is our experience that documentation completed immediately after a service is highly efficient, accurate and easily accessible for future reference. Our Clinicians will document in Welligent, a well-established Electronic Health Records system, to maintain up-to-date records that meet Medi-Cal billing standards. Clinicians will also have access to the Alameda County Community Health Record (CHR), an application with curated information from different organizations involved in consumer care, to improve care coordination.

Bonita House has a thorough knowledge of Medi-Cal documentation requirements. We have a Clinical Quality Review Team (CQRT) for each program that meets weekly. Every staff member receives initial and ongoing training in the documentation. We also have a current data analyst who has experience with collecting and quantifying data around crisis work in our current CATT team.

We also believe that dynamic clinical teams, particularly those operating primarily in the field, require effective and consistent supervision. To achieve this, we will schedule a 1-hour block once per week (i.e., 7a-8a). This will enable a weekly all-staff 1-hour structured team meeting. Team meetings will follow a predetermined agenda (e.g., safety issues, collaboration with community partners, planned service improvements, etc.), with longer discussions tabled until the end of the meeting to enable all to stay on track and adhere to time constraints. Clinicians will meet once weekly with the clinical supervisor to Exhibit B

discuss clinical concerns and facilitate professional development. This is considered best practice and will ensure community members continually receive high quality mental health services.

Our team will partner with City of Pleasanton to develop an outreach plan to collaborate with local schools, mental health providers and community stakeholders. This could range from providing presentations at local schools, to posting at the local fair to promote the program. We could also implement strategies to engage consumers in gathering feedback to understand the effectiveness of the program and its structure.

We will be able to implement and support the program with the following staffing structure. Each of these positions will provide a role in meeting the specifications of the RFP.

Behavioral Health Clinician: This is a position for licensed master's or doctorly prepared LMFT, LCSW, LPCC, PsyD, PhD. in Clinical Psychology, candidates with 2 years of progressively responsible experience providing clinical services, including crisis management. Experience working with children, adults with substance use and in assessment, diagnosis, formulating treatment plans, and performing verbal crisis intervention and de-escalation, linkage to services, and bilingual 2.0 FTE 40hrs/week.

Data Analyst: This role will be filled by existing staff in the Crisis Services department. This individual will be responsible for assisting with data collection and analysis along with creation of systems to support data tracking needs. 0.10 FTE 4hrs/week

Data Coordinator: Conducting Search. Data Coordinator provides general administrative and clerical support to clinical staff. The Data Coordinator will assist with billing to Alameda County INSYST system and Medicare, including maintaining an eligibility tracking system for Medi-Cal and Medicare billing, and maintaining work unit’s reports and records suitable for county, state, and federal auditing. 0.30 FTE 12hrs/week

Crisis Services Clinical Supervisor: This role will be filled by existing staff in the Crisis Services department. This position will assist with the training of new staff at the New Hire Academy and in the field. This position with assist with outreach. The supervisor will be available by phone for consultation if needed. This position will provide on-call coverage if needed. 0.10 FTE 4hrs/week

Director of Crisis Services: This role will be filled by existing staff in the Crisis Services department.

This position will manage the logistics of creating the program, hiring staff, and implementation of systems to support follow up, outreach and data collection. This position will provide on-call coverage if needed. 0.10 FTE 4hrs/week

Costs
The proposed two-year budget quantifies elements of implementation that have a budget impact. The budget is presented as two full years (i.e., 24 months) with Year 1 starting on July 1, 2022, which the RFP (Request for Proposals) states as the Contract Start Date for the ARMH (Alternate Response to Mental Health) program.

The following assumptions are built into the cost projections for Year 1:
 Hiring of 2.0 FTE Licensed Clinicians with language differential  Data Analyst (10%)
 Data Coordinator (30%)
 Director of Crisis Services (10%)
 Crisis Clinical Supervisor (10%)

YEARLY PERSONNEL COSTS
Position Yearly Salary
Payroll
Taxes Benefits
Indirect
Cost Total

7.65% 24% 14%
Licensed Bi-Lingual Clinician $99,197.00 $7,588.57 $23,807.28 $13,887.58 $144,480.43 Licensed Bi-Lingual Clinician $99,197.00 $7,588.57 $23,807.28 $13,887.58 $144,480.43 Data Analyst - 10% time $8,174.80 $625.39 $1,962.00 $1,144.50 $11,906.89 Data Coordinator - 30% time $17,004.00 $1,300.81 $4,080.96 $2,380.56 $24,766.33 Director of Crisis Services - 10%
Time $13,200.00

$1,009.80 $3,168.00 $1,848.00 $19,225.80
Clinical Supervisor - 10% Time $11,500.00 $879.75 $2,760.00 $1,610.00 $16,749.75 $361,609.62

Bilingual Behavioral Health Clinician: See "Scope of Services" section for descriptions of different position levels; the $99,197 annual salary is the pr ojected average annual salary across 2.0 FTE. We are seeking a strong pool of diverse candidates, including those who are bilingual.

Data Analyst: 0.10 FTE @ $81,748 = $8,174.80

Data Coordinator: 0.30 FTE @ $56,680 = $17,004.00

Crisis Services Clinical Supervisor: 0.10 FTE @ $115,000 = $11,500

Director of Crisis Services: 0.10 FTE @ $132,000 = $13,200

Benefits: Staff benefits are budgeted at the current Bonita House rate of 24% as follows:

Social security/Medicare = 7.65%; Medical & Dental = 10.42%; Worker's compensation insurance =

1.72%; Retirement = 3.30%; Life Insurance & Long-Term Disability = 0.46%; Unemployment = 0.45%.

Yearly Operating Costs: $13,362
The costs reflect a predominantly field-based program staff. As in our other Bonita House field-based programs, staff go directly into the field from their homes. The operating costs listed below are annual figures.

 IT Costs: Total $6,066. Annual licensing fees including mobile device management @ $75.75/month x 12 x 2 staff = $1,818; User support services, cloud server hosting fees @ $177/month x 12 x 2 = $4,248.
 Communications: Cell phones with unlimited data @ $60/month x 12 x 2 staff = $1,440.  Interpretive Services with Interpreters Unlimited: $3,900. 1 hour/week x $1.25 minute x 52 = $3,900.
 Transportation: $1,356. Non-commute mileage: 100 miles/month x 12 x 2 staff @ .565/mile (IRS rate) = $1,356.
 Training: $600. $300 x 2 staff = $600.

Startup Cost: Year one only = $26,000
 Laptops/Cellphones: $3,500 x 2 staff = $7,000.
 Recruitment costs: LinkedIn membership, job postings: $15,000.  Sign on bonuses for FTE clinicians: $2,000 x 2 = $4,000.

Total year one program costs: $400,971.62
(Personnel Costs + Operating Costs + Startup Costs)

Total projected year two program costs: $374,971.62
(Personnel Costs + Operating Costs)

Projected total pilot program costs: $775,943.24

Revenue: Medi-Cal Billing
Clearly, there is the potential for Medi-Cal billing in this pilot program. However, we are uncertain of exactly how much Medi-Cal revenue can be generated by clinicians in this pilot program. Over the two- year term of this pilot project, we will implement and begin billing to collect accurate financial data. It is possible Medi-Cal revenue could cover the majority of the costs associated with the Behavioral Health Clinician Services component of ARMH.

Item #12

CITY COUNCIL AGENDA REPORT

June 18, 2024
Public Works - Engineering Division

TITLE: PUBLIC HEARING - ADOPT RESOLUTIONS APPROVING THE 2024/25 ANNUAL ASSESSMENTS FOR LANDSCAPE MAINTENANCE DISTRICTS 1984-1
(PONDEROSA-DEL PRADO), 1993-1 (WINDSOR), 1993-2 (BONDE RANCH), 1994-1 (OAK TREE FARM), AND 1995-1 (MOLLER RANCH)

SUMMARY
The annual assessments for the Landscape Maintenance Districts (LMDs) in the Ponderosa- Del Prado, Windsor, Bonde Ranch, Oak Tree Farm, and Moller Ranch subdivisions have been calculated for Fiscal Year 2024/25. All districts are underfunded as assessments have not been increased since the passage of Proposition 218 in 1996. In addition, reserves for capital replacement are limited or non-existent. Notwithstanding this, all assessment amounts are proposed to remain unchanged until such time that a complete fiscal analysis, neighborhood outreach, and a Proposition 218-compliant vote can take place.

To address the funding issues, the City:
• entered into an agreement with the Windsor Homeowners Association (HOA) in February 2024, with the HOA accepting the routine landscape maintenance responsibilities and water costs for the Windsor LMD; and • is embarking on neighborhood outreach (in advance of a 2025 Proposition 218- compliant vote) for the Ponderosa and Moller Ranch LMDs; and • is limiting costs by shutting off the water for the Bonde Ranch and Oak Tree Farm LMDs to build up the reserve for a future Proposition 218-compliant vote.

RECOMMENDATION

1. Open and hold a public hearing to receive comments regarding the levy of annual assessments for each of the Landscape Maintenance Districts.

2. Adopt a resolution confirming the Engineer’s Report and levying assessments for each of the Landscape Maintenance Districts.

3. Appropriate $11,560 from the applicable City funds (General Fund, Water Fund and Sewer Fund) to the respective Landscape Maintenance Districts.

BACKGROUND
The Landscaping and Lighting Act of 1972 authorizes local agencies to impose an annual assessment on real property benefiting from improvements to pay for constructing and maintaining lighting and landscaping improvements. Alameda County collects the assessments as part of the annual tax bill.

At the meeting of May 21, 2024, the City Council approved the updated Engineer’s Report prepared by the City Engineer relating to each respective assessment district and scheduled

the public hearing for June 18, 2024, in conformance with the requirements of the State of California Landscaping and Lighting Act of 1972.

DISCUSSION
As required by the Landscaping and Lighting Act of 1972, the City must levy an annual assessment on all parcels benefited by their Landscape Maintenance District. The resolutions adopted at the May 21, 2024, meeting authorized the City Clerk to give the required notice of a public hearing regarding the levy of proposed annual assessments for the respective districts.

At its meeting on June 18, 2024, the City Council will hear and consider all public comments.

After the close of the public hearing, the City Council will, if desired, adopt a resolution confirming the Engineer's Report and levying assessments for each District for Fiscal Year 2024/25.

Landscape Maintenance District 1984-1, Ponderosa-Del Prado The Ponderosa Homes subdivision (District 1984-1) has 344 parcels, and the district has been in place for 40 years. Maintenance in this district includes the care of masonry walls, trees, shrubbery, groundcover and irrigation systems along Paseo Santa Cruz, between Corte Santa Maria and Corte Pacifica.

The overall assessments for the upcoming year for District 1984-1 (Ponderosa-Del Prado) will remain unchanged at $16.90 per privately-owned parcel, and $16.62 for the one City-owned parcel. With a total of 344 parcels (including the City-owned Del Prado Park parcel), this year’s total assessment will be $5,813.32.

This district's fund balance for capital repair and replacement is approximately $84,000. This amount is insufficient for several improvements for which replacement must be considered in the near term, including an extensive irrigation system replacement, plant replacement, tree pruning, and other features. Additionally, this amount is insufficient to repair the existing sound wall if repairs are needed in the future.

With the assessment of one City-owned parcel ($16.62) and the cost of maintenance for the “general benefit” area along the Alamo Canal ($9,703) that was in the LMD when it was originally formed but later determined to be a general benefit requiring City maintenance, the City will be responsible for $9,720 of the maintenance within the district area.

Staff intends to proceed with a Proposition 218-compliant vote in the upcoming fiscal year to request an increase in assessment amount based on the expected funding shortfall for capital improvements, maintenance, electricity, and water costs. The maintenance, water, and electricity costs are projected to cost about $6,700 more than the collected assessment while another $40,000 is necessary for a Proposition 218-compliant vote, thus requiring about $46,700 in reserve fund use.

Landscape Maintenance District 1993-1, Windsor
The Windsor subdivision (District 1993-1) has 90 parcels, and the district has been in place for 31 years. Maintenance in this district includes the care of masonry walls, trees, shrubbery, groundcover, irrigation systems, entry features and common area drainage ditches, along with furnishing all water and power for the irrigation system (situated in Lot A) on the northeast side of Tapestry Way and Minton Court and in the northwest corner of the subdivision, as well as in Lot C in the southwest corner of the subdivision (Tract 6320 in the city of Pleasanton).

The assessments for the coming year for District 1993-1 (Windsor) will be the same as last year at $269.62 per privately-owned parcel. With a total of 90 parcels in the district, this year's total assessment will be $24,265.80. This amount is not enough to fund the maintenance of the district areas to the same level of maintenance as in past years. The county assessment fee will continue to be paid, as will the City administration fee, but due to the increasing cost of water and maintenance services and the aging plant material, irrigation system, and improvements, the cash reserve for the district has been depleted.

Despite a significant reduction in the level of maintenance of the landscaped areas, there is a fund deficit of $14,000 for this district due to the significant irrigation breaks and repairs and the tree and tree limb failures that have occurred over the last few years. The winter storms of 2023/24 especially impacted the trees in the Windsor LMD due to a lack of funding for pruning.

Staff began the process of increasing the assessments for the Windsor LMD in early 2022 by initiating a Proposition 218 discussion about an assessment increase. However, the HOA instead chose to accept responsibility for the routine plant maintenance and water costs and entered into an agreement with the City to do so in February 2024. This positive step forward from the HOA equates to approximately $17,000 annually in cost reductions to the LMD. The other LMD maintenance responsibilities beyond plant care and water costs, such as maintenance of the sound wall, irrigation repairs, tree pruning, etc., continue to be managed by the City as part of the Windsor LMD.

Although the transfer of the routine LMD maintenance responsibilities and water costs to the Windsor HOA is a significant step toward returning the LMD to a positive fund balance, an increase in the annual assessment will still be necessary over the long term to continue the maintenance standards of the district and replenish the reserve needed to fund eventual capital repair and replacement costs.

Landscape Maintenance District 1993-2, Bonde Ranch
The Bonde Ranch subdivision (District 1993-2) has 103 parcels, and the district has been in place for 31 years. Maintenance in this district includes the care of entry features, open space areas, firebreaks, trees, shrubbery, groundcover and irrigation systems for the subdivision (Tracts 6483 and 6518 in the city of Pleasanton).

The assessments for the coming year for District 1993-2 (Bonde Ranch) will be the same as last year at $257.22 per privately-owned parcel and $252.91 for the one City-owned parcel.

With a total of 103 parcels in the district (including the City-owned Bonde Ranch water tank parcel), this year's total assessment will be $26,489.35. The assessments are not enough to fund the maintenance of the district areas to the same level as in past years. This amount will fund the district’s reduced maintenance, County assessment fees, and City administration fees but will not fund capital repair or replacement costs.

Despite shutting off the water due to existing leaks in the irrigation system, the district’s fund balance of $25,000 for Bonde Ranch is insufficient for other basic maintenance tasks such as mulch replacement and more extensive fence repair, replacement, and painting. An increase in the annual assessment will be necessary to continue the maintenance standards of the district and replenish the reserve needed to fund eventual capital repair and replacement costs.

Staff initiated a discussion about increasing the assessments in 2022 through a Proposition 218-compliant vote; however, the property owners at the neighborhood outreach meeting expressed strong opposition to increasing the assessment, such that staff paused the effort at that time.

Capital improvements, maintenance, electricity, and water costs are projected to continue to increase. Weed management consumes more than 40 percent of the LMD budget. The annual assessments will need to be increased to return the district to a similar level of maintenance as was intended when the Bonde Ranch LMD was approved and will require a Proposition 218 vote in the future.

Landscape Maintenance District 1994-1, Oak Tree Farm
The Oak Tree Farm subdivision (District 1994-1) has 42 parcels, and the district has been in place for 30 years. Maintenance in this district includes the care of open space areas, entry features, decorative lighting, firebreaks, trees, shrubbery, groundcover and irrigation systems.

The assessments for the upcoming year for District 1994-1 will remain at $473.66 per privately-owned parcel and $465.75 for the one City-owned parcel. With a total of 42 parcels in the district (including one City-owned sewer lift station parcel), this year's total assessment will be $19,885.81. This amount is not enough to fund the maintenance of the district areas to the same level of maintenance as in past years. This amount will fund the reduced maintenance of the district, county assessment fees, City administration fees, and minor district improvements, but is not enough to cover any required capital replacement costs or emergency repair services.

This district's fund balance for capital repair and replacement is $72,000. This amount is not enough for several improvements for which replacement must be considered in the near term, including extensive irrigation system replacement and plant replacement, decorative fence repairs, tree pruning, lighting replacement, and repair or replacement of other features.

Capital improvements, maintenance, and electricity costs are projected to continue to increase.

The annual assessments will need to be increased to return the district to a similar level of maintenance and address the necessary wildland weed management as was intended when the Oak Tree Farm LMD was approved, and will require a Proposition 218 vote in the future.

Landscape Maintenance District 1995-1, Moller Ranch
The Moller Ranch subdivision (District 1995-1) has 101 parcels, and the district has been in place for 29 years. Maintenance in this district includes the care of open space areas, entry features, lighting, firebreaks, trees, shrubbery, groundcover and irrigation systems.

The assessments for the coming year for District 1995-1 (Moller Ranch) will remain at $570.06 per privately-owned parcel and $1,121.06 ($560.53 per parcel) for two City-owned parcels.

With a total of 101 parcels in the district (including the City-owned Moller Ranch water tank parcel and a staging area for the Pleasanton Ridge), this year's total assessment will be $57,557. This amount will be sufficient to fund the reduced maintenance level of the district, including water and electrical costs, county assessment fees, City administration fees, and operating and maintenance costs, but is not enough to increase the capital repair or replacement reserve.

Although this district’s fund balance for capital repair and replacement is $273,000, there are several improvements for which replacement must be considered in the near term. The improvements consist of extensive irrigation system replacement and plant replacement, decorative fence repairs, and repair or replacement of other features. A portion of the irrigation system that waters established plants has been turned off due to numerous breaks.

Several years ago, staff met with the Moller Ranch HOA to discuss increased assessments to meet its repair/replacement capital improvement requirements. While support for an increase in the assessment amount was not overwhelming, the HOA was interested in exploring the cost-benefit aspects of an increase; further discussions with the Moller Ranch HOA are now planned. Staff met with the HOA Board of Directors in May 2024 to discuss a Proposition 218- compliant vote this coming fiscal year to address the projected funding shortfall of about $21,500. Another $40,000 is necessary for a Proposition 218-compliant vote, totaling $61,500 in projected reserve fund use. Staff estimates that the annual assessment will need to be increased.

Summary of Districts
The table below lists (A) the number of parcels in each district, (B) the proposed annual assessment per property for the upcoming fiscal year, (C) the total assessment amount for the district for the upcoming fiscal year, and (D) the existing reserve/deficit for all five landscape maintenance districts.

Increases to Assessments
Assessments in each of the districts will remain unchanged this fiscal year. As stated in this and prior reports, assessments have not been increased in the LMDs since they were created.

Therefore, the current assessments are based on operation, maintenance, and capital replacement costs which existed when the LMDs were created. The districts have operated year-to-year through a combination of reducing maintenance, shutting down irrigation systems, and depleting capital replacement reserves. This is due in large part to the complicated process required to increase assessments created by the passage of Proposition 218 in 1996.

However, annual costs have continued to increase, and capital reserves have been depleted

to the point now that this operational strategy is no longer sustainable. As detailed above, the revenue in some districts is no longer enough to cover the operational costs and has resulted in depleting the reserves needed for eventual capital replacement.

In consultation with SCI Consulting Group, a consultant that specializes in the formation of LMDs, staff began an analysis of potential Proposition 218 compliant votes to increase assessments for the two most underfunded LMDs: Windsor and Bonde Ranch. This effort was paused due to the Bonde Ranch residents’ opposition to the increase at the February 3, 2022, neighborhood outreach meeting. Additionally, the voting process for the Windsor LMD was also paused due to the HOA's acceptance of routine landscape maintenance responsibilities and water costs to address the funding shortfall. This upcoming fiscal year, staff will work with SCI Consulting Group on a Proposition 218-compliant vote for Moller Ranch and Ponderosa so that a plan is in place to maintain the existing irrigation system before it deteriorates to a state beyond repair. The Proposition 218-compliant vote and associated assessment increase for Bonde Ranch and Oak Tree Farm will take place after the reserve fund has increased to an amount that can fund the vote. Staff has shut off the water to eliminate wasted water and the associated costs.

The details in this report regarding staff’s desire to increase assessments is informational only in reference to the proposed public hearing on June 18, 2024.

PUBLIC COMMENT
Staff provides general information to residents within the Landscape and Lighting Maintenance Districts as a part of the public notice for confirmation of the Engineer's Report. This annual notice provides the name and phone number of a staff contact should questions arise. If questions are received and answered prior to the public hearing on June 18, 2024, staff will provide the City Council with those questions and staff’s answers before or at the public hearing.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA)
There is no environmental impact from a change to the assessment or due to maintenance and repair work. Maintenance work within each LMD is categorically exempt from CEQA under Guidelines Section 15302, “Replacement or Reconstruction.”

EQUITY AND SUSTAINABILITY
Not applicable, as this item is a routine matter of City business.

OUTREACH
The City Clerk sends notices to owners of real property within each LMD informing them about the date and time of the public hearing so that the City Council can receive any protests concerning the proposed assessments.

STRATEGIC PLAN ALIGNMENT
Approval of this action advances the Citywide ONE Pleasanton strategic goal of Funding our Future, Strategy 1 - Develop a long-term strategy for funding operations and maintenance needs to ensure reliability of community-owned facilities and infrastructure and continuity of City services.

FISCAL IMPACT
The LMDs are special assessment districts managed by the City. Each LMD fund can only be spent within the individual LMD where the assessments were collected (i.e., no commingling).

As required by law, the City will continue to incur a fiscal impact for those parcels that provide a “general benefit” and are City-owned. To that end, the City will pay for LMD parcels as follows:

Location Fund Fiscal
Impact
Parcel 946-4563-125 (Ponderosa - Del Prado
Park)
General Fund 201 $16.62
General benefit area along the Alamo Canal in
District 1984-1 (Ponderosa - Del Prado)
General Fund 201 $9,703.00
Parcel 948-0014-1-39 (water tank site) in District
1993-2 (Bonde Ranch)
Water Fund 420 $252.91
Parcel 946-4585-044 (sewer lift station) in
District 1994-1 (Oak Tree Farm)
Sewer Fund 430 $465.75
Parcels 941-1803-62 (water tank site) in District
1995-1 (Moller Ranch)
Water Fund 420 $560.53
Parcels 941-1801-02 (trails staging area) in
District 1995-1 (Moller Ranch)
General Fund 201 $560.53
Total $11,559.34

These fiscal impacts will be analyzed as part of the review to confirm compliance with Proposition 218. As with last year's assessments, staff recommends the total of $11,560 be appropriated from the applicable city funds (General Fund, Water Fund and Sewer Fund) to the respective Landscape Maintenance Districts.

Prepared by: Submitted by: Approved by:

Matthew Gruber, Landscape
Architect
Siew-Chin Yeong, Director of Public
Works

Gerry Beaudin, City
Manager

Attachments:

1. Resolution – Ponderosa-Del Prado

2. Resolution – Windsor

3. Resolution – Bonde Ranch

4. Resolution – Oak Tree Farm

5. Resolution – Moller Ranch

RESOLUTION NO. _______

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PLEASANTON APPROVING THE ENGINEER’S REPORT AND THE CONTINUATION OF THE LEVY

AND COLLECTION OF ASSESSMENTS WITHIN THE LIGHTING & LANDSCAPE MAINTENANCE DISTRICT NO. 1984-1 PONDEROSA-DEL PRADO FOR FISCAL YEAR 2024/25
WHEREAS, on May 21, 2024, the City Council adopted resolution entitled “A

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PLEASANTON DECLARING THE

INTENTION TO ORDER IMPROVEMENTS FOR THE LIGHTING & LANDSCAPE MAINTENANCE DISTRICT NO. 1984-1 PONDEROSA-DEL PRADO FOR FISCAL YEAR 2024/25; DECLARING THE INTENTION TO CONTINUE THE LEVY AND COLLECTION ASSESSMENTS; AND SETTING THE DATE FOR THE PUBLIC HEARING,” whereby the City Council proposed the continuation of the Lighting & Landscape Maintenance District No. 1984-1 Ponderosa-Del Prado (the “District”) pursuant to the Landscaping and Lighting Act of 1972, constituting Part 2 of Division 15 of the California Streets and Highways Code (the “Act”); and WHEREAS, the City Council designated the City Engineer as Engineer of Work for purposes of these proceedings (the “Engineer of Work”) and directed the Engineer of Work to prepare an Engineer’s Report (the “Report”) in accordance with the Act and Article XIIID of the California Constitution; and
WHEREAS, the Report was duly made and filed with the City Clerk, and considered by this Council and found to be sufficient, then it was determined that the Report should stand as the Engineer's Report for all subsequent proceedings pursuant to that resolution, and that June 18, 2024, at the hour of 7 p.m. at the City Council Chambers, located at 200 Old Bernal Avenue, Pleasanton, California, was appointed as the time and place for a hearing by this Council on the question of the levy of the proposed assessment, notice of which hearing was given as required by law; and
WHEREAS, at the appointed time and place the hearing was held, and all persons interested and desiring to be heard were given an opportunity to be heard, and all matters pertaining to the continuation of the levy were heard and considered by this Council, and all oral and written protests or communications were duly heard, considered and overruled, and this Council thereby acquired jurisdiction to order the levy and the confirmation of the diagram and assessment prepared by and made a part of the Engineer's Report to pay the costs and expenses thereof.

NOW, THEREFORE BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF PLEASANTON DOES RESOLVE, DECLARE, DETERMINE AND ORDER THE FOLLOWING:

SECTION 1.The public interest, convenience and necessity require that the continuation of the levy be made.

SECTION 2.The land within the District will be specially benefited by the improvements and assessed to pay the costs and expenses of the improvements, and the exterior boundaries of the District, are as shown by a map in the Report filed in the office of the City Clerk, which map is made a part of this resolution by reference.

ATTACHMENT 1

SECTION 3.The improvements to be made in the District are generally described as follows:

Landscaping, including trees, shrubs and irrigation system all as delineated on the landscape and irrigation plans for Tract 5256 (Phase III Landscape Maintenance District 1984-1) and Tract 4986 (Arroyo de la Laguna Improvements).

Said improvements are within the following areas:

North of Corte de Flores on the west side of Paseo Santa Cruz approximately 160 feet long by 6 feet wide, and north of Corte Pacifica on the east side of Paseo Santa Cruz approximately 1,370 feet long by 6 feet wide.

SECTION 4.The assessments are in compliance with the provisions of the Act and Article XIII D of the California Constitution, and the City Council has complied with all laws pertaining to the levy of annual assessments pursuant to the Act and Article XIII D of the California Constitution.

SECTION 5.Reference is hereby made to the Report for a full and detailed description of the improvements, the boundaries of the District and the proposed assessments upon assessable lots and parcels of land within the District. The Engineer's Report as a whole and each part thereof, to wit:
i. the Engineer's estimate of the itemized and total costs and expenses of maintaining the improvements and of the incidental expenses; ii. the diagram showing the assessment district, plans and specifications for the improvements to be maintained and the boundaries and dimensions of the respective lots and parcels of land within the District; and iii. the assessment of the total amount of the cost and expenses of the proposed maintenance of the improvements upon the several lots and parcels of land in the District in proportion to the estimated special benefits to be received by such lots and parcels, respectively, from the maintenance, and of the incidental expenses are finally approved and confirmed.

SECTION 6.Final adoption and approval of the Engineer's Report as a whole, and of the plans and specifications, estimate of the costs and expenses, the diagram and the assessment, as contained in the Report as determined and ordered, is intended to and shall refer and apply to the Report, or any portion as amended, modified, or revised or corrected by, or pursuant to and in accordance with, any resolution or order, if any, duly adopted or made by this Council.

SECTION 7.The assessment is hereby levied to pay the costs and expenses of the maintenance of the improvements for fiscal year 2024/25.

SECTION 8.Based on the oral and documentary evidence, including the Engineer's Report, offered and received at the hearing, the City Council expressly finds and determines that:
(a) each of the several lots and parcels of land will be specially benefited by the maintenance of the improvements at least in the amount if not more than the amount, of the assessment apportioned against the lots and parcels of land, respectively; and (b) there is substantial evidence to support the finding and determination as to special benefits.

SECTION 9.Immediately upon the adoption of this resolution, but in no event later than August 10 following such adoption, the Engineer of Work shall file a certified copy of the diagram and assessment and a certified copy of this resolution with the County Auditor. Upon such filing, the County Auditor shall enter on the County assessment roll opposite each lot or parcel of land the amount of assessment thereupon as shown in the assessment.

SECTION 10.The assessments shall be collected at the same time and in the same manner as County taxes are collected and all laws providing for the collection and enforcement of County taxes shall apply to the collection and enforcement of the assessments. After collection by the County, the net amount of the assessments, after deduction of any compensation due the County for collection, shall be paid to the Lighting & Landscape Maintenance District No. 1984-1 Ponderosa-Del Prado.

SECTION 11.The moneys representing assessments collected by Alameda County shall be deposited in the City Treasury to the credit of the special fund known as the “Lighting & Landscape Maintenance District No. 1984-1 Ponderosa-Del Prado” previously established.

Moneys in the fund shall be expended only for the maintenance, servicing, construction or installation of the improvements.

SECTION 12.The adoption of this resolution constitutes the continuation of assessments for the fiscal year commencing July 1, 2024, and ending June 30, 2025.

SECTION 13.This resolution shall take effect immediately upon its adoption. City Clerk shall certify to the passage of this resolution and enter it into the book of original resolutions.

PASSED, APPROVED AND ADOPTED by the City Council of the City of Pleasanton at a regular meeting held on June 18, 2024.

I, Jocelyn Kwong, City Clerk of the City of Pleasanton, California, certify that the foregoing resolution was adopted by the City Council at a regular meeting held on the 18th day of June 2024 by the following vote:

Ayes:

Noes:

Absent:

Abstain:
_____________________________
Jocelyn Kwong, City Clerk
Dated: _______________________
APPROVED AS TO FORM:
____________________________
Daniel Sodergren, City Attorney

RESOLUTION NO. _______

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PLEASANTON APPROVING THE ENGINEER’S REPORT AND THE CONTINUATION OF THE LEVY

AND COLLECTION OF ASSESSMENTS WITHIN THE LIGHTING & LANDSCAPE MAINTENANCE DISTRICT NO. 1993-1 WINDSOR FOR FISCAL YEAR 2024/25 WHEREAS, on May 21, 2024, the City Council adopted resolution entitled “A

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PLEASANTON DECLARING THE

INTENTION TO ORDER IMPROVEMENTS FOR THE LIGHTING & LANDSCAPE MAINTENANCE DISTRICT NO. 1993-1 WINDSOR FOR FISCAL YEAR 2024/25; DECLARING THE INTENTION TO CONTINUE THE LEVY AND COLLECTION ASSESSMENTS; AND SETTING THE DATE FOR THE PUBLIC HEARING,” whereby the City Council proposed the continuation of the Lighting & Landscape Maintenance District No. 1993-1 Windsor (the “District”) pursuant to the Landscaping and Lighting Act of 1972, constituting Part 2 of Division 15 of the California Streets and Highways Code (the “Act”); and
WHEREAS, the City Council designated the City Engineer as Engineer of Work for purposes of these proceedings (the “Engineer of Work”) and directed the Engineer of Work to prepare an Engineer’s Report (the “Report”) in accordance with the Act and Article XIIID of the California Constitution; and
WHEREAS, the Report was duly made and filed with the City Clerk, and considered by this Council and found to be sufficient, then it was determined that the Report should stand as the Engineer's Report for all subsequent proceedings pursuant to that resolution, and that June 18, 2024, at the hour of 7 p.m. at the City Council Chambers, located at 200 Old Bernal Avenue, Pleasanton, California, was appointed as the time and place for a hearing by this Council on the question of the levy of the proposed assessment, notice of which hearing was given as required by law; and
WHEREAS, at the appointed time and place the hearing was held, and all persons interested and desiring to be heard were given an opportunity to be heard, and all matters pertaining to the continuation of the levy were heard and considered by this Council, and all oral and written protests or communications were duly heard, considered and overruled, and this Council thereby acquired jurisdiction to order the levy and the confirmation of the diagram and assessment prepared by and made a part of the Engineer's Report to pay the costs and expenses thereof.

NOW, THEREFORE BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF PLEASANTON DOES RESOLVE, DECLARE, DETERMINE AND ORDER THE FOLLOWING:

SECTION 1.The public interest, convenience and necessity require that the continuation of the levy be made.

SECTION 2.The land within the District will be specially benefited by the improvements and assessed to pay the costs and expenses of the improvements, and the exterior boundaries of the District, are as shown by a map in the Report filed in the office of the City Clerk, which map is made a part of this resolution by reference.

ATTACHMENT 2

SECTION 3.The improvements to be made in the District are generally described as follows:

The maintenance and repair of designated landscaped areas and open space areas, entry features, masonry soundwalls, common area drainage ditches, irrigation systems, trees and plantings in designated landscaped areas, furnishing of water and power for irrigation systems, and street lights, together with all appurtenant and incidental expenses within Tract 6320, City of Pleasanton.

SECTION 4.The assessments are in compliance with the provisions of the Act and Article XIII D of the California Constitution, and the City Council has complied with all laws pertaining to the levy of annual assessments pursuant to the Act and Article XIII D of the California Constitution.

SECTION 5.Reference is hereby made to the Report for a full and detailed description of the improvements, the boundaries of the District and the proposed assessments upon assessable lots and parcels of land within the District. The Engineer's Report as a whole and each part thereof, to wit:
i. the Engineer's estimate of the itemized and total costs and expenses of maintaining the improvements and of the incidental expenses; ii. the diagram showing the assessment district, plans and specifications for the improvements to be maintained and the boundaries and dimensions of the respective lots and parcels of land within the District; and iii. the assessment of the total amount of the cost and expenses of the proposed maintenance of the improvements upon the several lots and parcels of land in the District in proportion to the estimated special benefits to be received by such lots and parcels, respectively, from the maintenance, and of the incidental expenses are finally approved and confirmed.

SECTION 6.Final adoption and approval of the Engineer's Report as a whole, and of the plans and specifications, estimate of the costs and expenses, the diagram and the assessment, as contained in the Report as determined and ordered, is intended to and shall refer and apply to the Report, or any portion as amended, modified, or revised or corrected by, or pursuant to and in accordance with, any resolution or order, if any, duly adopted or made by this Council.

SECTION 7.The assessment is hereby levied to pay the costs and expenses of the maintenance of the improvements for fiscal year 2024/25.

SECTION 8.Based on the oral and documentary evidence, including the Engineer's Report, offered and received at the hearing, the City Council expressly finds and determines that:
(a) each of the several lots and parcels of land will be specially benefited by the maintenance of the improvements at least in the amount if not more than the amount, of the assessment apportioned against the lots and parcels of land, respectively; and (b) there is substantial evidence to support the finding and determination as to special benefits.

SECTION 9.Immediately upon the adoption of this resolution, but in no event later than August 10 following such adoption, the Engineer of Work shall file a certified copy of the diagram

and assessment and a certified copy of this resolution with the County Auditor. Upon such filing, the County Auditor shall enter on the County assessment roll opposite each lot or parcel of land the amount of assessment thereupon as shown in the assessment.

SECTION 10.The assessments shall be collected at the same time and in the same manner as County taxes are collected and all laws providing for the collection and enforcement of County taxes shall apply to the collection and enforcement of the assessments. After collection by the County, the net amount of the assessments, after deduction of any compensation due the County for collection, shall be paid to the Lighting & Landscape Maintenance District No. 1993-1 Windsor.

SECTION 11.The moneys representing assessments collected by Alameda County shall be deposited in the City Treasury to the credit of the special fund known as the “Lighting & Landscape Maintenance District No. 1993-1 Windsor” previously established. Moneys in the fund shall be expended only for the maintenance, servicing, construction or installation of the improvements.

SECTION 12.The adoption of this resolution constitutes the continuation of assessments for the fiscal year commencing July 1, 2024, and ending June 30, 2025.

SECTION 13.This resolution shall take effect immediately upon its adoption. City Clerk shall certify to the passage of this resolution and enter it into the book of original resolutions.

PASSED, APPROVED AND ADOPTED by the City Council of the City of Pleasanton at a regular meeting held on June 18, 2024.

I, Jocelyn Kwong, City Clerk of the City of Pleasanton, California, certify that the foregoing resolution was adopted by the City Council at a regular meeting held on the 18th day of June 2024 by the following vote:

Ayes:

Noes:

Absent:

Abstain:
_____________________________
Jocelyn Kwong, City Clerk
Dated: _______________________
APPROVED AS TO FORM:
____________________________
Daniel Sodergren, City Attorney

RESOLUTION NO. _______

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PLEASANTON APPROVING THE ENGINEER’S REPORT AND THE CONTINUATION OF THE LEVY

AND COLLECTION OF ASSESSMENTS WITHIN THE LIGHTING & LANDSCAPE MAINTENANCE DISTRICT NO. 1993-2 BONDE RANCH FOR FISCAL YEAR 2024/25 WHEREAS, on May 21, 2024, the City Council adopted resolution entitled “A

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PLEASANTON DECLARING THE

INTENTION TO ORDER IMPROVEMENTS FOR THE LIGHTING & LANDSCAPE MAINTENANCE DISTRICT NO. 1993-2 BONDE RANCH FOR FISCAL YEAR 2024/25;

DECLARING THE INTENTION TO CONTINUE THE LEVY AND COLLECTION ASSESSMENTS; AND SETTING THE DATE FOR THE PUBLIC HEARING,” whereby the City Council proposed the continuation of the Lighting & Landscape Maintenance District No. 1993-2 Bonde Ranch (the “District”) pursuant to the Landscaping and Lighting Act of 1972, constituting Part 2 of Division 15 of the California Streets and Highways Code (the “Act”); and WHEREAS, the City Council designated the City Engineer as Engineer of Work for purposes of these proceedings (the “Engineer of Work”) and directed the Engineer of Work to prepare an Engineer’s Report (the “Report”) in accordance with the Act and Article XIIID of the California Constitution; and
WHEREAS, the Report was duly made and filed with the City Clerk, and considered by this Council and found to be sufficient, then it was determined that the Report should stand as the Engineer's Report for all subsequent proceedings pursuant to that resolution, and that June 18, 2024, at the hour of 7 p.m. at the City Council Chambers, located at 200 Old Bernal Avenue, Pleasanton, California, was appointed as the time and place for a hearing by this Council on the question of the levy of the proposed assessment, notice of which hearing was given as required by law; and
WHEREAS, at the appointed time and place the hearing was held, and all persons interested and desiring to be heard were given an opportunity to be heard, and all matters pertaining to the continuation of the levy were heard and considered by this Council, and all oral and written protests or communications were duly heard, considered and overruled, and this Council thereby acquired jurisdiction to order the levy and the confirmation of the diagram and assessment prepared by and made a part of the Engineer's Report to pay the costs and expenses thereof.

NOW, THEREFORE BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF PLEASANTON DOES RESOLVE, DECLARE, DETERMINE AND ORDER THE FOLLOWING:

SECTION 1.The public interest, convenience and necessity require that the continuation of the levy be made.

SECTION 2.The land within the District will be specially benefited by the improvements and assessed to pay the costs and expenses of the improvements, and the exterior boundaries of the District, are as shown by a map in the Report filed in the office of the City Clerk, which map is made a part of this resolution by reference.

ATTACHMENT 3

SECTION 3.The improvements to be made in the District are generally described as follows:

The maintenance and repair of street lights, designated landscaped areas, open space slopes, fuel transition zones (fire breaks), entry features, open space drainage ditches, irrigation systems, trees in the open space and designated landscaped areas, together with all appurtenant and incidental expenses within Tract 6483, City of Pleasanton. The district property behind the Ventana Hills neighborhood has been removed from the Bonde Ranch Lighting and Landscape Maintenance District, as indicated in the updated map, and is now incorporated into the Bonde Ranch Open Space.

SECTION 4.The assessments are in compliance with the provisions of the Act and Article XIII D of the California Constitution, and the City Council has complied with all laws pertaining to the levy of annual assessments pursuant to the Act and Article XIII D of the California Constitution.

SECTION 5.Reference is hereby made to the Report for a full and detailed description of the improvements, the boundaries of the District and the proposed assessments upon assessable lots and parcels of land within the District. The Engineer's Report as a whole and each part thereof, to wit:
i. the Engineer's estimate of the itemized and total costs and expenses of maintaining the improvements and of the incidental expenses; ii. the diagram showing the assessment district, plans and specifications for the improvements to be maintained and the boundaries and dimensions of the respective lots and parcels of land within the District; and iii. the assessment of the total amount of the cost and expenses of the proposed maintenance of the improvements upon the several lots and parcels of land in the District in proportion to the estimated special benefits to be received by such lots and parcels, respectively, from the maintenance, and of the incidental expenses are finally approved and confirmed.

SECTION 6.Final adoption and approval of the Engineer's Report as a whole, and of the plans and specifications, estimate of the costs and expenses, the diagram and the assessment, as contained in the Report as determined and ordered, is intended to and shall refer and apply to the Report, or any portion as amended, modified, or revised or corrected by, or pursuant to and in accordance with, any resolution or order, if any, duly adopted or made by this Council.

SECTION 7.The assessment is hereby levied to pay the costs and expenses of the maintenance of the improvements for fiscal year 2024/25.

SECTION 8.Based on the oral and documentary evidence, including the Engineer's Report, offered and received at the hearing, the City Council expressly finds and determines that:
(a) each of the several lots and parcels of land will be specially benefited by the maintenance of the improvements at least in the amount if not more than the amount, of the assessment apportioned against the lots and parcels of land, respectively; and (b) there is substantial evidence to support the finding and determination as to special benefits.

SECTION 9.Immediately upon the adoption of this resolution, but in no event later than August 10 following such adoption, the Engineer of Work shall file a certified copy of the diagram and assessment and a certified copy of this resolution with the County Auditor. Upon such filing, the County Auditor shall enter on the County assessment roll opposite each lot or parcel of land the amount of assessment thereupon as shown in the assessment.

SECTION 10.The assessments shall be collected at the same time and in the same manner as County taxes are collected and all laws providing for the collection and enforcement of County taxes shall apply to the collection and enforcement of the assessments. After collection by the County, the net amount of the assessments, after deduction of any compensation due the County for collection, shall be paid to the Lighting & Landscape Maintenance District No. 1993-2 Bonde Ranch.

SECTION 11.The moneys representing assessments collected by Alameda County shall be deposited in the City Treasury to the credit of the special fund known as the “Lighting & Landscape Maintenance District No. 1993-2 Bonde Ranch” previously established. Moneys in the fund shall be expended only for the maintenance, servicing, construction or installation of the improvements.

SECTION 12.The adoption of this resolution constitutes the continuation of assessments for the fiscal year commencing July 1, 2024, and ending June 30, 2025.

SECTION 13.This resolution shall take effect immediately upon its adoption. City Clerk shall certify to the passage of this resolution and enter it into the book of original resolutions.

PASSED, APPROVED AND ADOPTED by the City Council of the City of Pleasanton at a regular meeting held on June 18, 2024.

I, Jocelyn Kwong, City Clerk of the City of Pleasanton, California, certify that the foregoing resolution was adopted by the City Council at a regular meeting held on the 18th day of June 2024 by the following vote:

Ayes:

Noes:

Absent:

Abstain:
_____________________________
Jocelyn Kwong, City Clerk
Dated: _______________________
APPROVED AS TO FORM:
____________________________
Daniel Sodergren, City Attorney

RESOLUTION NO. _______

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PLEASANTON APPROVING THE ENGINEER’S REPORT AND THE CONTINUATION OF THE LEVY

AND COLLECTION OF ASSESSMENTS WITHIN THE LIGHTING & LANDSCAPE MAINTENANCE DISTRICT NO. 1994-1 OAK TREE FARM FOR FISCAL YEAR 2024/25 WHEREAS, on May 21, 2024, the City Council adopted resolution entitled “A

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PLEASANTON DECLARING THE

INTENTION TO ORDER IMPROVEMENTS FOR THE LIGHTING & LANDSCAPE MAINTENANCE DISTRICT NO. 1994-1 OAK TREE FARM FOR FISCAL YEAR 2024/25;

DECLARING THE INTENTION TO CONTINUE THE LEVY AND COLLECTION ASSESSMENTS; AND SETTING THE DATE FOR THE PUBLIC HEARING,” whereby the City Council proposed the continuation of the Lighting & Landscape Maintenance District No. 1994-1 Oak Tree Farm (the “District”) pursuant to the Landscaping and Lighting Act of 1972, constituting Part 2 of Division 15 of the California Streets and Highways Code (the “Act”); and WHEREAS, the City Council designated the City Engineer as Engineer of Work for purposes of these proceedings (the “Engineer of Work”) and directed the Engineer of Work to prepare an Engineer’s Report (the “Report”) in accordance with the Act and Article XIIID of the California Constitution; and
WHEREAS, the Report was duly made and filed with the City Clerk, and considered by this Council and found to be sufficient, then it was determined that the Report should stand as the Engineer's Report for all subsequent proceedings pursuant to that resolution, and that June 18, 2024, at the hour of 7 p.m. at the City Council Chambers, located at 200 Old Bernal Avenue, Pleasanton, California, was appointed as the time and place for a hearing by this Council on the question of the levy of the proposed assessment, notice of which hearing was given as required by law; and
WHEREAS, at the appointed time and place the hearing was held, and all persons interested and desiring to be heard were given an opportunity to be heard, and all matters pertaining to the continuation of the levy were heard and considered by this Council, and all oral and written protests or communications were duly heard, considered and overruled, and this Council thereby acquired jurisdiction to order the levy and the confirmation of the diagram and assessment prepared by and made a part of the Engineer's Report to pay the costs and expenses thereof.

NOW, THEREFORE BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF PLEASANTON DOES RESOLVE, DECLARE, DETERMINE AND ORDER THE FOLLOWING:

SECTION 1.The public interest, convenience and necessity require that the continuation of the levy be made.

SECTION 2.The land within the District will be specially benefited by the improvements and assessed to pay the costs and expenses of the improvements, and the exterior boundaries of the District, are as shown by a map in the Report filed in the office of the City Clerk, which map is made a part of this resolution by reference.

ATTACHMENT 4

SECTION 3.The improvements to be made in the District are generally described as follows:

The maintenance and repair of designated landscaped areas, open space slopes, fuel transition zones (fire breaks), entry features, open space drainage ditches, irrigation systems, trees in the open space and designated landscaped areas, and the furnishing of water and power for irrigation systems, together with all appurtenant and incidental expenses within Tract 6563, and 6748, and parcels B and C of Parcel Map 6359, City of Pleasanton.

SECTION 4.The assessments are in compliance with the provisions of the Act and Article XIII D of the California Constitution, and the City Council has complied with all laws pertaining to the levy of annual assessments pursuant to the Act and Article XIII D of the California Constitution.

SECTION 5.Reference is hereby made to the Report for a full and detailed description of the improvements, the boundaries of the District and the proposed assessments upon assessable lots and parcels of land within the District. The Engineer's Report as a whole and each part thereof, to wit:
i. the Engineer's estimate of the itemized and total costs and expenses of maintaining the improvements and of the incidental expenses; ii. the diagram showing the assessment district, plans and specifications for the improvements to be maintained and the boundaries and dimensions of the respective lots and parcels of land within the District; and iii. the assessment of the total amount of the cost and expenses of the proposed maintenance of the improvements upon the several lots and parcels of land in the District in proportion to the estimated special benefits to be received by such lots and parcels, respectively, from the maintenance, and of the incidental expenses are finally approved and confirmed.

SECTION 6.Final adoption and approval of the Engineer's Report as a whole, and of the plans and specifications, estimate of the costs and expenses, the diagram and the assessment, as contained in the Report as determined and ordered, is intended to and shall refer and apply to the Report, or any portion as amended, modified, or revised or corrected by, or pursuant to and in accordance with, any resolution or order, if any, duly adopted or made by this Council.

SECTION 7.The assessment is hereby levied to pay the costs and expenses of the maintenance of the improvements for fiscal year 2024/25.

SECTION 8.Based on the oral and documentary evidence, including the Engineer's Report, offered and received at the hearing, the City Council expressly finds and determines that:
(a) each of the several lots and parcels of land will be specially benefited by the maintenance of the improvements at least in the amount if not more than the amount, of the assessment apportioned against the lots and parcels of land, respectively; and (b) there is substantial evidence to support the finding and determination as to special benefits.

SECTION 9.Immediately upon the adoption of this resolution, but in no event later than August 10 following such adoption, the Engineer of Work shall file a certified copy of the diagram

and assessment and a certified copy of this resolution with the County Auditor. Upon such filing, the County Auditor shall enter on the County assessment roll opposite each lot or parcel of land the amount of assessment thereupon as shown in the assessment.

SECTION 10.The assessments shall be collected at the same time and in the same manner as County taxes are collected and all laws providing for the collection and enforcement of County taxes shall apply to the collection and enforcement of the assessments. After collection by the County, the net amount of the assessments, after deduction of any compensation due the County for collection, shall be paid to the Lighting & Landscape Maintenance District No. 1994-1 Oak Tree Farm.

SECTION 11.The moneys representing assessments collected by Alameda County shall be deposited in the City Treasury to the credit of the special fund known as the “Lighting & Landscape Maintenance District No. 1994-1 Oak Tree Farm” previously established. Moneys in the fund shall be expended only for the maintenance, servicing, construction or installation of the improvements.

SECTION 12.The adoption of this resolution constitutes the continuation of assessments for the fiscal year commencing July 1, 2024, and ending June 30, 2025.

SECTION 13.This resolution shall take effect immediately upon its adoption. City Clerk shall certify to the passage of this resolution and enter it into the book of original resolutions.

PASSED, APPROVED AND ADOPTED by the City Council of the City of Pleasanton at a regular meeting held on June 18, 2024.

I, Jocelyn Kwong, City Clerk of the City of Pleasanton, California, certify that the foregoing resolution was adopted by the City Council at a regular meeting held on the 18th day of June 2024 by the following vote:

Ayes:

Noes:

Absent:

Abstain:
_____________________________
Jocelyn Kwong, City Clerk
Dated: _______________________
APPROVED AS TO FORM:
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Daniel Sodergren, City Attorney