ROCKLIN CITY COUNCIL
City Council Regular Meeting
City Hall - Council Chambers
3970 Rocklin Rd. Rocklin, CA
95677
Website:
www.rocklin.ca.us
June 25, 2024
CONSOLIDATED MEETING AGENDA
City of Rocklin City Council
Public Financing Authority
Closed Session at 5:30 p.m.
General Session at 6:00 p.m.
GREG JANDA,
Mayor
JILL GAYALDO,
Vice Mayor
DAVID BASS,
Council Member
KEN BROADWAY,
Council Member
BILL HALLDIN,
Council Member
ALY ZIMMERMANN,
City Manager
MATTHEW MCOMBER,
City Attorney
DANIEL CHOE,
City Treasurer
AVINTA SINGH,
City Clerk
HOW TO PARTICIPATE
The City of Rocklin welcomes your interest and involvement in the City's legislative process. The City Council has established a procedure for addressing the Council. Persons wishing to address the City Council are asked to voluntarily complete and submit a speaker identification sheet to the City Clerk.
Speaker identification sheets are available near the entrance of the Council Chambers. For items listed on the agenda, any person may address the City Council at the time the item is considered. Speakers are requested to restrict their comments to the item as it appears on the agenda and stay within the required five minute time limit. The Brown Act does not permit the City Council to take action on items brought up under Citizens Addressing the City Council.
WRITINGS RECEIVED AFTER AGENDA POSTING
Any writing or documents related to an agenda item for this meeting provided to the City Council, Public Financing Authority or Successor Agency will be made available for public inspection at City Hall, 3970 Rocklin Road, Rocklin, during normal business hours.
AMERICANS WITH DISABILITIES ACT
In compliance with the Americans with Disabilities Act, if you require special assistance to participate in this meeting or other services in conjunction with this meeting, including receiving notices, agendas, and other writings in appropriate alternative formats, please contact our office at (916) 625- 5560 at least 48 hours prior to the meeting or time when services are needed so that we may make every reasonable effort to accommodate you.
AUDIO/VISUAL PRESENTATIONS
If making a presentation regarding an agenda item, all audio/visual materials must be submitted to the City Clerk or Secretary at least 72 hours in advance. The City is not responsible for the compatibility or operation of non-city devices or the functionality of non-city presentations.
POSTING OF AGENDA
City Council Regular Meeting Agenda of June 25, 2024
1 The public may listen to audio or view the meeting via live stream at https://www.rocklin.ca.us/agendas-minutes
.
For those that do not plan on attending in person, but wish to make a public comment during the meeting, public comments will be accepted in email form until 3:00 p.m. on the meeting day. Public comments should be submitted to the City Clerk at [email protected]
. Emailed public comments will be distributed to City Council and treated as a public record.
1. CLOSED SESSION
This is an opportunity for public comment on matters not listed on the agenda. Public comment on items listed on the agenda will be taken when the agenda item is called.
2. REPORTS FROM CITY COUNCIL AND CITY MANAGER
Reports from the City Council will include any AB1234 Reports.
3. CONSENT CALENDAR
All items listed under the Consent Calendar are considered and acted upon by one Motion. Anyone may request an item be removed for separate consideration.
In accordance with Government Code Section 54954.2(a) this agenda was posted on the City's bulletin board at City Hall, 3970 Rocklin Road, Rocklin, and City of Rocklin website at www.rocklin.ca.us.
AGENDA
MEETING
INSTRUCTIONS
CALL TO ORDER
ROLL CALL
PUBLIC COMMENT ON CLOSED SESSION
Pursuant to Government Code Section 54956.9(d)(1), Conference with Legal Counsel, Existing Litigation: Ortega v. City of Rocklin, et al., Placer County Superior Case No.
SVC0050341.
REPORT OUT OF CLOSED SESSION
CALL GENERAL SESSION TO ORDER
PLEDGE OF ALLEGIANCE
AGENDA REVIEW
CITIZENS ADDRESSING THE CITY COUNCIL
City Council Regular Meeting Agenda of June 25, 2024
2 3A.
Minutes of the May 29, 2024 Special Meeting of the City Council 3B.
Minutes of the June 11, 2024 Regular Meeting of the City Council 3C.
Appointments
to Various Boards, Commissions and Committees
3D.
Military Equipment Use Policy for Fiscal Year 2024-25 (Second Reading of Ordinance)
3E.
Establish Compensation for Members of the Arts Commission 3F.
Fiscal Year 2024/25 Community Facilities Districts Bond Debt Service Fund Budgets and Collection of Special Taxes on the 2024/25 Tax Roll 3G.
Placer County Treasurer's Investment Pool - Designation of Authorized Staff 3H.
Delegation of Investment Decision Authority and Adoption of Legislative Policy No. 1 - Investment Policy
Recommendation:
Approve the Minutes of the May 29, 2024 Special Meeting of the City Council.
Recommendation:
Approve the Minutes of the June 11, 2024 Regular Meeting of the City Council.
Recommendation:
Adopt a Resolution of the City Council of the City of Rocklin Making Appointments to the Various Boards, Commissions, and Committees.
Recommendation:
Adopt an Ordinance of the City Council of the City of Rocklin Approving and Adopting a Military Equipment Use Policy for Fiscal Year 2024-25.
Recommendation:
Adopt a Resolution of the City Council of the City of Rocklin Establishing Compensation for Members of the Arts Commission.
Recommendation:
A
.
Adopt a Resolution of the City Council of the City of Rocklin Adopting Budgets for Community Facilities Districts Bond Debt Service Funds for Fiscal Year 2024/25.
B
.
Adopt a Resolution of the City Council of the City of Rocklin Requesting the Collection of Special Taxes on the 2024/25 Tax Roll.
Recommendation:
Adopt a Resolution of the City Council of the City of Rocklin Authorizing Investment of Monies in the Placer County Treasurer's Investment Pool, and Designating Staff Authorized to Deposit and Withdraw Monies.
Recommendation:
Adopt a Resolution of the City Council of the City of Rocklin Delegating Authority to Make Investment Decisions to the City Treasurer and Adopting Legislative Policy No. 1 - Investment Policy.
City Council Regular Meeting Agenda of June 25, 2024
3 3I.
Purchasing Goods and Services through Cooperative Purchase Agreements for Fiscal Year 2024/25
3J.
Local Agency Investment Fund - Investment Authorization and Designation of Authorized Staff
3K.
Intention to Annex Vista Oaks (APNs 046-010-007-000 and 046-020-003-000) into Community Facilities District No. 1
3L.
Intention to Establish Vista Oaks as a Future Annexation Area of Community Facilities District No. 5
3M.
Amendment to the FY 2023/24 Budget
Recommendation:
Adopt a Resolution of the City Council of the City of Rocklin Authorizing the City Manager to Purchase Goods and Services through Cooperative Purchase Agreements for Fiscal Year 2024/25.
Recommendation:
Adopt a Resolution of the City Council of the City of Rocklin Authorizing Investment of Monies in the Local Agency Investment Fund and Designating Staff Authorized to Deposit and Withdraw Monies and Rescinding Resolution No. 2021-197.
Recommendation:
Adopt a Resolution of the City Council of the City of Rocklin of Intention to Annex Territory to Rocklin Community Facilities District No. 1 (Annexation No. 85) and to Authorize the Levy of Special Taxes Therein (Vista Oaks, APNs 046-010-007-000 and 046-020-003-000).
Recommendation:
Adopt a Resolution of the City Council of the City of Rocklin of Intention to Establish Territory as a Future Annexation Area of Rocklin Community Facilities District No. 5 (Vista Oaks, APNs 046-010-007-000 and 046-020-003- 000).
Recommendation:
Adopt a Resolution of the City Council of the City of Rocklin Amending the Fiscal Year 2023/24 Budget.
City Council Regular Meeting Agenda of June 25, 2024
4 3N.
Various Personnel Updates
3O.
At-Grade Railroad Roadway and Pedestrian Improvements Project 3P.
Building Services Contract Amendment
Recommendation:
A
.
Adopt a Resolution of the City Council of the City of Rocklin Approving and Authorizing the City Manager to Execute the City of Rocklin Workplace Violence Prevention Plan, and Repealing and Replacing any Resolution in Conflict Herewith.
B
.
Adopt a Resolution of the City Council of the City of Rocklin Approving the City of Rocklin Travel Policy, Authorizing the City Manager to Execute the Travel Policy, and Replacing and Replacing Resolution No. 2014-190.
C
.
Adopt a Resolution of the City of Council of the City of Rocklin Approving the Revised Salary Schedules for Rocklin Police Officers’ Association; Rocklin Police Officers’ Association; Rocklin Police Officers' Association Public Safety Managers’ Bargaining Unit; Rocklin Firefighters’ Union; Rocklin Public Service Employees’ Bargaining Unit; and Rocklin Management, Confidential, and Unrepresented Employees’ Resolution.
Recommendation:
A
.
Adopt a Resolution of the City Council of the City of Rocklin Awarding a Professional Services Contract for Engineering Services for the At-Grade Railroad Roadway and Pedestrian Improvements Project to Kimley-Horn and Associates, Inc. and Authorizing the City Manager to Execute the Agreement.
B
.
Adopt a Resolution of the City Council of the City of Rocklin Approving Reimbursement Agreements with Union Pacific Railroad (UPRR) Company for Preliminary Engineering Services for the At-Grade Railroad Roadway and Pedestrian Improvements Project and Authorizing the City Manager to Execute the Agreements.
Recommendation:
Adopt a Resolution of the City Council of the City of Rocklin Approving and Authorizing the City Manager to Execute Amendment No. 1 to the Contract Services Agreement with Bureau Veritas North America, Inc. for Building Plan Review and Inspection Services.
City Council Regular Meeting Agenda of June 25, 2024
5 3Q.
Fire Plan Review and Inspection Services On-Call Contract Awards 3R.
City of Rocklin Fire Department's State Mandated Annual Fire Inspection Report 3S.
Proclamation Declaring the Month of July as Parks and Recreation Month 3T.
Purchase of Four Police Vehicles
3U.
City-Wide Bark & Play Fiber Maintenance Award
Recommendation:
A
.
Adopt a Resolution of the City Council of the City of Rocklin Awarding an On- Call Professional Services Contract to 4LEAF, Inc. and Authorizing the City Manager to Execute the Agreement.
B
.
Adopt a Resolution of the City Council of the City of Rocklin Awarding an On-
Call Professional Services Contract to Bureau Veritas, Inc. and Authorizing
the City Manager to Execute the Agreement.
C
.
Adopt a Resolution of the City Council of the City of Rocklin Awarding an On-
Call Professional Services Contract to Shums Coda and Associates, Inc. and
Authorizing the City Manager to Execute the Agreement.
D
.
Adopt a Resolution of the City Council of the City of Rocklin Awarding an On-
Call Professional Services Contract to CSG Consultants
and Authorizing the
City Manager to Execute the Agreement.
E
.
Adopt a Resolution of the City Council of the City of Rocklin Awarding an On-
Call Professional Services Contract to BPR, Inc.
and Authorizing the City
Manager to Execute the Agreement.
Recommendation:
Adopt a Resolution of the City Council of the City of Rocklin A
cknowledging the Fire Department’s
C
ompliance with Sections 13146.2 and
13146.3 of the California Health and Safety Code.
Recommendation:
Approve a Proclamation Declaring the Month of July as Parks and Recreation Month,
and Designate the Mayor to Sign the Proclamation on
Behalf of the City Council.
Recommendation:
Adopt a Resolution of the City Council of the City of Rocklin Approving and Authorizing the Purchase of Four
Chevrolet Tahoe Police Vehicles
from Winner Chevrolet
and Authorizing the City Manager to Purchase the Vehicles from Winner Chevrolet.
Recommendation:
A
.
Adopt a Resolution of the City Council of the City of Rocklin Approving a Notice of Exemption (City-Wide Bark and Play Fiber Maintenance).
B
.
Adopt a Resolution of the City Council of the City of Rocklin Awarding the Contract for the City-Wide Bark & Play Fiber Maintenance to Jet Mulch, Inc., and Authorizing the City Manager to Execute an Agreement.
City Council Regular Meeting Agenda of June 25, 2024
6 3V.
Corporation Yard Shop Roof Restoration and Gutter Replacement - Award of Contract
3W.
Corporation Yard Portable Releveling and Dry Rot Repair Award 3X.
Senate Bill 1 Projects List Update
4. SPECIAL PRESENTATIONS
In addition to those items listed on the agenda, the Mayor may add additional ceremonial matters. 4A.
Proclamation Declaring
the Month of July 2024
as Parks and Recreation Month
4B.
Oaths of Office for Incoming Board, Commission and Committee Members
5. PUBLIC HEARINGS
Public Hearings may be reordered by the Mayor with the consent of the legislative body.
Recommendation:
A
.
Adopt a Resolution of the City Council of the City of Rocklin Approving a Notice of Exemption (Corporation Yard Shop Roof Restoration and Gutter Replacement).
B
.
Adopt a Resolution of the City Council of the City of Rocklin Awarding the Contract for the Corporation Yard Shop Roof Restoration and Gutter Replacement to United Building Contractors, Inc. and Authorizing the City Manager to Execute Construction Agreement.
Recommendation:
A
.
Adopt a Resolution of the City Council of the City of Rocklin Approving a Notice of Exemption (Corporation Yard Portable Releveling and Dry Rot Repair).
B
.
Adopt a Resolution of the City Council of the City of Rocklin Awarding the Contract for Corporation Yard Portable Releveling and Dry Rot Repair to Reliant Construction, Inc., and Authorizing the City Manager to Execute an Agreement.
Recommendation:
Adopt a Resolution of the City Council of the City of Rocklin Rescinding Resolution No. 2024-136 and Adopting a List of Projects for Fiscal Year 2024/25 Funded by Senate Bill 1: The Road Repair and Accountability Act of 2017.
City Council Regular Meeting Agenda of June 25, 2024
7 5A.
Fiscal Year 2024/25 Operating Budget, 2025-2029 Capital Improvement Program, and Related Personnel Actions
5B.
Special Assessments for Delinquent Weed Abatement Charges 5C.
Solid Waste Rate Increase Public Hearing
5D.
Special Assessments for Delinquent Refuse Collection Fees 5E.
Public Facilities Impact Fees Annual Inflation Adjustment
6. FUTURE AGENDA ITEMS
Recommendation:
Conduct a Public Hearing and Consider the Following Actions:
A
.
Adopt a Resolution of the City Council of the City of Rocklin Adopting the Fiscal Year 2024/25 Operating Budget and 2025-2029 Capital Improvement Program.
B
.
Adopt a Resolution of the City Council of the City of Rocklin Adopting a Revised Management Salary Schedule.
C
.
Adopt a Resolution of the City Council of the City of Rocklin Approving Rules, Regulations, Benefits, and Policies Relating to Employee Relations Between the Management, Confidential, and Unrepresented Employees and the City; Repealing Resolution No. 2023-134.
Recommendation:
Conduct a Public Hearing and Consider the Following Actions:
A
.
Adopt a Resolution of the City Council of the City of Rocklin Imposing Special Assessments Against Certain Parcels for Delinquent Weed Abatement Charges.
B
.
Adopt a Resolution of the City Council of the City of Rocklin Requesting the Collection of Taxes, Assessments on the 2024/25 Tax Roll (Weed Abatement Charges).
Recommendation:
Conduct a Public Hearing and, if there is No Majority Protest, Consider the Following Action:
Adopt a Resolution of the City Council of the City of Rocklin Amending Solid Waste Collection Service Rates within the Incorporated Limits of the City of Rocklin and Rescinding Resolution No. 2023-110.
Recommendation:
Conduct a Public Hearing and Consider the Following Actions:
A
.
Adopt a Resolution of the City Council of the City of Rocklin Imposing Special Assessments Against Certain Parcels for Delinquent Refuse Collection Fees.
B
.
Adopt a Resolution of the City Council of the City of Rocklin Requesting the Collection of Taxes, Assessments on the 2024/25 Tax Roll (Delinquent Refuse Collection Fees).
Recommendation:
Conduct a Public Hearing and Consider the Following Action:
Adopt a Resolution of the City Council of the City of Rocklin Authorizing the Annual Inflation Adjustments to the Public Facilities Impact Fees.
City Council Regular Meeting Agenda of June 25, 2024
8 7.
PUBLIC FINANCING AUTHORITY
7A.
Public Financing Authority of the City of Rocklin Adopting a Budget for Fiscal Year 2024/25
8. ADJOURNMENT
The Rocklin City Council will adjourn and reconvene as the Public Financing Authority of the City of Rocklin.
Recommendation:
Adopt a Resolution of the Public Financing Authority of the City of Rocklin Adopting a Budget for Fiscal Year 2024/25.
City Council Regular Meeting Agenda of June 25, 2024
9 City Council
Staff Report
Subject:
Minutes of the May 29, 2024 Special Meeting of the City Council Date:
June 25, 2024
Submitted By:
Avinta Singh, City Clerk
Department:
City Clerk's Office
Recommendation:
Approve the Minutes of the May 29, 2024 Special Meeting of the City Council.
Item Number 3A.
ATTACHMENTS:
1. DRAFT City Council Special Meeting Minutes of May 29 2024 10 DRAFT Meeting Minutes of May 29, 2024 Rocklin City Council 1 | P a g e
ROCKLIN CITY COUNCIL
City Council Special Meeting
City Hall - Council Chambers
3970 Rocklin Rd. Rocklin, CA 95677
Website: www.rocklin.ca.us
May 29, 2024
4:00 pm
MEETING MINUTES
-DRAFT-
CALL TO ORDER
Mayor Janda called the meeting to order at 4:00 p.m.
PLEDGE OF ALLEGIANCE
Mayor Janda led the pledge of allegiance.
ROLL CALL
Present: Councilmembers Ken Broadway, Bill Halldin
Mayor Greg Janda
Absent: Councilmember David Bass
Vice Mayor Jill Gayaldo
1. DISCUSSION ITEMS
1A. Interviewed Candidates for Appointments to the Board of Appeals , Community Recognition Commission, and Parks and Recreation Commission, and Deliberated.
The City Council conducted interviews with the following applicants:
Neil Bullock
Kipp Crew
Jane Davaransky
William Dean
Anannya Gairola
Melanie Hildenbrand
Ravneet Kaur
Elizabeth McGuirk
11 DRAFT Meeting Minutes of May 29, 2024 Rocklin City Council 2 | P a g e
John McMillan
Brook Moniz
Wendy Smith
A resolution recommending the appointments will be presented to City Council for adoption at the Regular Meeting of June 25, 2024.
2. ADJOURNMENT
Mayor Janda adjourned the meeting at 7:34 p.m.
This is to certify that the foregoing is a true and
correct copy of the minutes of May 29, 2024 as
approved by the Rocklin City Council.
Avinta Singh, City Clerk
12 City Council
Staff Report
Subject:
Minutes of the June 11, 2024 Regular Meeting of the City Council Date:
June 25, 2024
Submitted By:
Avinta Singh, City Clerk
Department:
City Clerk's Office
Recommendation:
Approve the Minutes of the June 11, 2024 Regular Meeting of the City Council.
Item Number 3B.
ATTACHMENTS:
1. DRAFT City Council Meeting Minutes of June 11 2024
13 DRAFT Meeting Minutes of June 11, 2024 Rocklin City Council 1 | P a g e
ROCKLIN CITY COUNCIL
City Council Regular Meeting
City Hall - Council Chambers
3970 Rocklin Rd. Rocklin, CA 95677
Website: www.rocklin.ca.us
June 11, 2024
General Session 6:00 pm
MEETING MINUTES
-DRAFT-
CALL TO ORDER
Mayor Janda called the meeting to order at 6:00 p.m.
PLEDGE OF ALLEGIANCE
Mayor Janda led the pledge of allegiance.
ROLL CALL
Present: Councilmembers David Bass, Jill Gayaldo, Bill Halldin Mayor Greg Janda
Absent: Councilmember Ken Broadway
AGENDA REVIEW
There were no changes to the agenda.
CITIZENS ADDRESSING THE CITY COUNCIL
Mr. Jerry Mitchell appreciated the roadwork being done on Argonaut Avenue and Midas Avenue and indicated that the Meet the Machines event was a great event.
1. REPORTS FROM CITY COUNCIL AND CITY MANAGER
Reports from the City Council will include any AB1234 Reports.
Councilmember Bass reported attendance at the Placer County Flood Control District meeting noting the new executive director had started; shared that he and Councilmember Halldin met with local leaders including the Board of Supervisors to discuss energy options; 14 DRAFT Meeting Minutes of June 11, 2024 Rocklin City Council 2 | P a g e
and thanked Mayor Janda and staff for the letter of support given to assemblymen on organized retail theft legislation.
Vice Mayor Gayaldo shared her participation in interviews for the selection of a contractor on behalf of Sacramento Area Council of Governments (SACOG) 2025 Blueprint; reported attendance at SACOG’s Policy and Innovation Committee meeting noting that Rocklin had sent a letter of support in protecting Regional Early Action Planning (REAP) grants; noted that the Placer Mosquito and Vector Control District would report on invasive mosquitos found recently in the City; reported attendance at local high school and middle school graduation ceremonies; thanked staff for the road repairs performed at Granite Oaks Middle School; underscored the success of the Rocklin Brewfest organized by South Placer Rotary noting that all other Councilmembers had participated in the event; and expressed the impact that the loss of Aldo Pineschi will have on the Placer County community and how well- attended his celebration of life was uniting people from all walks of life.
Councilmember Halldin shared his participation in the Rocklin Brewfest noting that the event helps to raise funds for community projects for South Placer Rotary; stated that he participated in the interview process for the City’s Boards, Commissions and Committees, including interviews of five youth applicants for the vacancy on the Parks and Recreation Commission; reported attendance for the relocation of New Life Chiropractic in Rocklin and thanking the company for their investment in the City; shared his participation in meeting with other cities to discuss energy challenges in the area; and expressed his appreciation to former Rocklin Mayors Joe Patterson, Scott Yuill and Peter Hill for their contributions to the City Council sponsored scholarships.
Mayor Janda shared that he presented two City Council scholarships to seniors at Whitney High School; participated in interviews for Boards, Commissions and Committees, including youth applicants; was pleased with Rocklin students and the incredible things they were doing in the community; reported on his participation in Brewfest Rocklin, underscoring that it was a great event with approximately 1,800 attendees with a majority traveling in from other cities; and expressed that it was difficult to attend the service of Aldo Pineschi, a great friend and mentor to the community.
Assistant City Manager Conwayshared that the Rocklin Swim program had started; noted two upcoming concerts that week at Quarry Park Amphitheatre to include Whitey Morgan and the 78’s and Buckethead, and two concerts added to the schedule to include Judy Collins and Keith Sweat later in the summer.
2. CONSENT CALENDAR
All items listed under the Consent Calendar are considered and acted upon by one Motion.
Anyone may request and item be removed for separate consideration. 2A. Minutes of the May 28, 2024 Regular Meeting of the City Council Action: Approved the Minutes of the May 28, 2024 Regular Meeting of the City Council.
15 DRAFT Meeting Minutes of June 11, 2024 Rocklin City Council 3 | P a g e
2B. November 5, 2024 General Municipal Election
Action:
A. Adopted Resolution No. 2024-133 of the City Council of the City of Rocklin Calling and Declaring a General Municipal Election to be Held on Tuesday, November 5, 2024, and Requesting the Placer County Board of Supervisors Consolidate the Election with the State-Wide General Election; and Requesting the County Elections Official Render Election Services for the General Municipal Election.
B. Adopted Resolution No. 2024-134 of the City Council of the City of Rocklin Adopting Regulations for Candidates of Elective Office Pertaining to Candidate Statements Submitted to the Voters at an Election to be Held on Tuesday, November 5, 2024 Election.
2C. Accounts Paid List - January to March 2024
Action: Received the Accounts Paid List for January 1, 2024 to March 31, 2024. 2D. Quarterly Treasurer's Report
Action: Received the Treasurer's Report for the Quarter Ending March 31, 2024. 2E. 2022 Homeland Security Grant Program - Award of Grant Action: Adopted Resolution No. 2024-135 of the City Council of the City of Rocklin Approving and Authorizing the City Manager to Execute Subawardee Grant Agreement with the City of Sacramento Accepting the Terms and Award of the 2022 Homeland Security Grant Program-Urban Area Security Initiative. 2F. Senate Bill 1 Projects
Action: Adopted Resolution No. 2024-136 of the City Council of the City of Rocklin Adopting a List of Projects Fiscal Year 2024/25 funded by Senate Bill 1: The Road Repair and Accountability Act of 2017.
2G. Fuel Purchases and Vehicle Parts/Services - Increase in Spending Authority Action:
A. Adopted Resolution No. 2024-137 of the City Council of the City of Rocklin to Authorize Increasing the Total Not-to-Exceed Amount with Hunt & Sons, Inc.
Under Sacramento Area Council of Governments Agreement #1920029.
B. Adopted Resolution No. 2024-138 of the City Council of the City of Rocklin to Authorize Increasing the Total Not-to-Exceed Amount with Golden State Emergency Vehicle Service Under Sourcewell Agreement #1130021-OKC-1. 2H. Amendment No. 2 to Contract for Open Space Monitoring Services Action: Adopted Resolution No. 2024-139 of the City Council of the City of Rocklin Approving Amendment No. 2 to the Contract for Services with Vollmar Natural Lands Consulting, Inc., and Authorizing the City Manager to Execute Amendment No. 2.
PUBLIC COMMENT
There were none.
16 DRAFT Meeting Minutes of June 11, 2024 Rocklin City Council 4 | P a g e
Motion to approve Consent Calendar Items Nos. 2A through 2H by Vice Mayor Gayaldo and seconded by Councilmember Bass, inclusive of the Blue Memo for Item 2B. Passed by the following vote:
Ayes: Councilmembers Bass, Gayaldo, Halldin
Mayor Janda
Noes: None
Absent: Councilmember Broadway
Abstain: None
3. SPECIAL PRESENTATION
3A. Placer Mosquito & Vector Control District Annual Update Ms. Meagan Luevano, Public Information Officer with the Placer Mosquito and Vector Control District, provided an annual update on programming and reported that the Aedes aegypti mosquito had been detected in the Parker Whitney neighborhood of the City near Johnson-Springview Park and discussed the response plan which included ground-based treatment and notifications to the public. Ms. Luevano addressed questions by the City Council.
The City Council expressed their appreciation for the annual update, a review of the process for reporting dead birds, the use of interns from Whitney High School in educational programs, and emphasized the District being am industry leader in the use of drone technology.
4. PUBLIC HEARINGS
4A. Levy and Collection of Assessments for Lighting Maintenance District No. 1 for Fiscal Year 2024/25
Action: Conducted a Public Hearing and Considered the Following Actions:
A. Adopted Resolution No. 2024-140 of the City Council of the City of Rocklin Ordering the Levy and Collection of Assessments for Lighting Maintenance District No. 1 and Confirming a Diagram and Assessment.
B. Adopted Resolution No. 2024-141 of the City Council of the City of Rocklin Requesting the Collection of Taxes, Assessments, and Liens on the 2024/25 Tax Roll (Lighting Maintenance District No. 1).
Mayor Janda opened the public hearing for Item 4A.
Management Analyst Megan Bressem presented the item to City Council.
PUBLIC COMMENT
There were none.
17 DRAFT Meeting Minutes of June 11, 2024 Rocklin City Council 5 | P a g e
Mayor Janda closed the public hearing for Item 4A.
Motion to approve Item 4A. by Councilmember Halldin, seconded by Councilmember Bass. Passed by the following vote:
Ayes: Councilmembers Bass, Gayaldo, Halldin
Mayor Janda
Noes: None
Absent: Councilmember Broadway
Abstain: None
4B. Levy and Collection of Assessments for Landscape and Lighting Maintenance District No. 2 for Fiscal Year 2024/25
Action: Conducted a Public Hearing and Considered the Following Actions:
A. Adopted Resolution No. 2024-142 of the City Council of the City of Rocklin Ordering the Levy and Collection of Assessments for Landscape and Lighting Maintenance District No. 2 and Confirming a Diagram and Assessment.
B. Adopted Resolution No. 2024-143 of the City Council of the City of Rocklin Requesting the Collection of Taxes, Assessments, and Liens on the 2024/25 Tax Roll (Landscape and Lighting Maintenance District No. 2).
Mayor Janda opened the public hearing for Item 4B.
Management Analyst Megan Bressem presented the item to City Council.
PUBLIC COMMENT
There were none.
Mayor Janda closed the public hearing for Item 4B.
Motion to approve Item 4B. by Councilmember Bass, seconded by Councilmember Halldin. Passed by the following vote:
Ayes: Councilmembers Bass, Gayaldo, Halldin
Mayor Janda
Noes: None
Absent: Councilmember Broadway
Abstain: None
5. DISCUSSION ITEMS
5A. Fiscal Year 2023/24 Third Quarter: Financial Report and Strategic Plan Update Action: Adopted Resolution No. 2024-144 of the City Council of the City of 18 DRAFT Meeting Minutes of June 11, 2024 Rocklin City Council 6 | P a g e
Rocklin Accepting the Quarterly Financial Report for the Quarter Ended March 31, 2024.
Budget Officer Zonousia Lee provided an update on the Third Quarter Financial Report and Assistant City Manager Sherri Conway presented the Strategic Planning Update, followed by City Council questions.
Management Analyst Elizabeth Sorg indicated that the Point in Time count was conducted by City staff and was volunteer-driven, and noted that the COC and Homeless Resources Council of the Sierras hired consultants for data gathering and reporting.
PUBLIC COMMENT
Mr. Benjamin Bjorkman appreciated budget reductions made by the Rocklin Police Department and expressed concern on the impact of development projects on future deficits.
Motion to approve Item 5A. by Councilmember Bass, seconded by Vice Mayor Gayaldo. Passed by the following vote:
Ayes: Councilmembers Bass, Gayaldo, Halldin
Mayor Janda
Noes: None
Absent: Councilmember Broadway
Abstain: None
5B. AB 481 - Military Equipment Report and Inventory: Annual Update Action:
A. Introduced, Waived the Full Reading and Read by Title Only, an Ordinance of the City Council of the City of Rocklin Approving and Adopting A Military Equipment Use Policy For Fiscal Year 2024-25.
B. Received the 2023 AB 481 annual Military Equipment Report and inventory listing.
Police Captain Chad Morris presented the item to City Council.
PUBLIC COMMENT
Mr. Benjamin Bjorkman supported funding public safety, and suggested prolonging the lifespan or not replacing certain equipment for cost savings.
Motion to approve Item 5B.A. by Vice Mayor Gayaldo, seconded by Councilmember Halldin. Passed by the following vote:
19 DRAFT Meeting Minutes of June 11, 2024 Rocklin City Council 7 | P a g e
Ayes: Councilmembers Bass, Gayaldo, Halldin
Mayor Janda
Noes: None
Absent: Councilmember Broadway
Abstain: None
Motion to approve Item 5B.B. by Vice Mayor Gayaldo, seconded by Councilmember Halldin. Passed by the following vote:
Ayes: Councilmembers Bass, Gayaldo, Halldin
Mayor Janda
Noes: None
Absent: Councilmember Broadway
Abstain: None
6. FUTURE AGENDA ITEMS
There were none.
7. ADJOURNMENT
Mayor Janda adjourned the meeting at 7:03 p.m.
This is to certify that the foregoing is a true and
correct copy of the minutes of June 11, 2024 as
approved by the Rocklin City Council.
Avinta Singh, City Clerk
20 City Council
Staff Report
Subject:
Appointments
to Various Boards, Commissions and Committees
Date:
June 25, 2024
Submitted By:
City Clerk, Avinta Singh
Department:
City Clerk's Office
Recommendation:
Adopt a Resolution of the City Council of the City of Rocklin Making Appointments to the Various Boards, Commissions, and Committees.
Background:
At the Special City Council Meeting on May 29, 2024, the City Council conducted interviews with qualified applicants to fill vacancies on the Board of Appeals, Community Recognition Commission, and Parks and Recreation Commission (including a scheduled vacancy for a Youth Commissioner).
The City Council also reviewed requests for reappointment of scheduled vacancies on the Board of Appeals, Community Recognition Commission, Investment Advisory Committee, Parks and Recreation Commission and Planning Commission.
Exhibit A to the Resolution identifies the recommended appointments and reappointments.
Fiscal Impact:
There is no fiscal impact to the staff recommendation.
Item Number 3C.
ATTACHMENTS:
1. Resolution
21 RESOLUTION NO. 2024-
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROCKLIN
MAKING APPOINTMENTS TO THE VARIOUS BOARDS,
COMMISSIONS, AND COMMITTEES
The City Council of the City of Rocklin does resolve as follows:
Section 1. The City Council of the City of Rocklin does hereby appoint and reappoint the following individuals to the various Boards, Commissions and Committees of the City of Rocklin commencing July 1, 2024 as set forth in Exhibit A, attached hereto and hereby incorporated herein by this reference.
PASSED AND ADOPTED this 25th day of June, 2024, by the following vote:
AYES: Councilmembers
NOES: Councilmembers:
ABSENT: Councilmembers:
ABSTAIN: Councilmembers:
Greg Janda, Mayor
ATTEST:
Avinta Singh, City Clerk
22 Exhibit A
to Reso. No. 2024-
EXHIBIT A
APPOINTMENTS:
BOARD OF APPEALS
Res. No. 81-34
Four Year Term
Appointee Term Expires
William D. Dean 6/30/2028
COMMUNITY RECOGNITION COMMISSION
RMC Chapter 2.45
Four Year Term
Appointee Term Expires
Jane Davaransky 6/30/2028
PARKS AND RECREATION COMMISSION
RMC Chapter 2.36 & 2.44.050
Four Year Term
Appointees Term Expires
Elizabeth E. McGuirk 6/30/2028
John McMillan
(Youth Commissioner) 6/30/2025
23 Exhibit A
to Reso. No. 2024-
REAPPOINTMENTS:
BOARD OF APPEALS
Res. No. 81-34
Four Year Term
Appointee Term Expires
Wijaya H. Perera 6/30/2028
COMMUNITY RECOGNITION COMMISSION
RMC Chapter 2.45
Four Year Term
Appointee Term Expires
Susan A. Willson 6/30/2028
INVESTMENT ADVISORY COMITTEE
Appointee Term Expires
Ramakrishna Bachina 6/30/2028
PARKS AND RECREATION COMMISSION
RMC Chapter 2.36 & 2.44.050
Four Year Term
Appointees Term Expires
Christine D. Anderson 6/30/2028
Matthew B. Duarte 6/30/2028
PLANNING COMMISSION
RMC Chapter 2.36 & 2.44.050
Four Year Term
Appointees Term Expires
Roberto Cortez 6/30/2028
Gregg A. McKenzie 6/30/2028
24 City Council
Staff Report
Subject:
Military Equipment Use Policy for Fiscal Year 2024-25 (Second Reading of Ordinance)
Date:
June 25, 2024
Submitted By:
Avinta Singh, City Clerk
Department:
City Clerk's Office
Recommendation:
Adopt an Ordinance of the City Council of the City of Rocklin Approving and Adopting a Military Equipment Use Policy for Fiscal Year 2024-25.
Background:
On June 11, 2024, the City Council introduced, read by title only and waived the full reading of the following:
An Ordinance of the City Council of the City of Rocklin Approving and Adopting a Military Equipment Use Policy for Fiscal year 2024-25.
The background materials for this item are contained in the June 11, 2024 City Council
Meeting Staff Report
, located on the City's website.
Item Number 3D.
ATTACHMENTS:
1. Ordinance No. 1180 - Military Equipment Use Policy
25
Ordinance No.
ORDINANCE NO. 1180
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ROCKLIN
APPROVING AND ADOPTING A MILITARY EQUIPMENT USE POLICY
FOR FISCAL YEAR 2024-25
WHEREAS, Assembly Bill 481, codified as Government Code sections 7070 through 7075, requires law enforcement agencies to obtain approval of their governing body by ordinance adopting a "military equipment" use policy, at a regular meeting prior to taking c ertain actions relating to the funding, acquisition, or use of military equipment; and
WHEREAS, the Rocklin Police Department has submitted a Military Equipment Use Policy for Fiscal Year (FY) 2024 -25 for the City Council's consideration and adoption.
NOW, THEREFORE, the City Council of the City of Rocklin does ordain as follows:
Section 1. Purpose. Thepurpose of this ordinance isto annually adopt the military equipment use policy as required by California Government Code section 7070 et seq., as amended from time to time, with the requisite findings and determinations set forth therein.
Section 2. Authority.This ordinance is enacted under the authority granted to cities by Article XI, Section 7 of the California Constitution and Government Code sections 37100, and 7070, et seq.
Section 3. Findings.
A. Assembly Bill 481, codified as Government Code sections 7070 through 7075, requires law enforcement agencies to annually obtain approval of their governing body by ordinance adopting a "military equipment" use policy, which includes the Department's inventory of "military equipment," at a regular meeting prior to taking certain actions relating to the funding, acquisition, or use of military equipment, and Government Code section 7070 specifically defines the term or phrase “military equipment.”
B. The Rocklin Police Department's Military Equipment Use Policy is found within the Rocklin Police Department Policy Manual, Policy 706.
C. The Rocklin Police Department's Military Equipment Use Policy was published on the Rocklin Police Department's website and presented to the City Council at least thirty days prior to the regular City Council meeting wherein the Policy 26
Ordinance No.
was considered for adoption.
D. The Rocklin Police Department's Military Equipment Use Policy meets the requirements of California Government Code section 7070(d).
Section 4. Determinations. Based upon the findings set forth above, in addition to information provided as part of the regular City Council meeting wherein the Rocklin Police Department's Military Use Policy for FY 2024-25 was considered for adoption, the City Council of the City of Rocklin determines as follows:
1. The military equipment identified in the Rocklin Police Department's Military Equipment Use Policy is necessary, because there are no reasonable alternatives that can achieve the same objections of officer and civilian safety.
2. The Rocklin Police Department's Military Equipment Use Policy will safeguard the public ' s welfare, safety, civil rights, and civil liberties.
3. The military equipment identified in the Rocklin Police Department 's Military Equipment Use Policy is reasonably cost effective compared to available alternatives that can achieve the same objective of officer and civilian safety.
4. The Rocklin Police Department's Military Equipment Use Policy is approved and adopted for FY 2024-25.
Section 5. Effective Date. This ordinance shall take effect 30 days after the date of its adoption.
Section 6. Environmental. The City Council hereby finds that this ordinance is not subject to review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines sections 15060, subdivision (c)(2) (the activity will not result in a direct or reasonably foresee able indirect physical change in the environment) and 15061, subdivision (b)(3) (there is no possibility the activity in question may have a significant effect on the environment).
Section 7. Severability. If any section, subsection, sentence, clause, phrase or portion of this ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this ordinance. City Council hereby declares that it would have adopted this ordinance and each section, subsection, sentence, clause, phrase or portion thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases or portions to be declared invalid or unconstitutional.
Section 8. Publication. Within 15 days of passage of this ordinance, the City Clerk shall cause the full text of the ordinance, a summary of the ordinance, or an 27
Ordinance No.
advertisement of the ordinance to be published in a newspaper of general circulation, with the names of those City Councilmembers voting for and against the ordinance, in accordance with Government Code section 36933.
INTRODUCED at a regular meeting of the City Council of the City of Rocklin held on June 11, 2024, by the following vote:
AYES: Councilmembers: Bass, Gayaldo, Halldin, Janda
NOES: Councilmembers: None
ABSENT: Councilmember: Broadway
ABSTAIN: Councilmembers: None
PASSED AND ADOPTED at a regular meeting of the City Council of the City of Rocklin held __________________, 2024, by the following vote:
AYES: Councilmembers:
NOES: Councilmembers:
ABSENT: Councilmembers:
ABSTAIN: Councilmembers:
Greg Janda, Mayor
Avinta Singh, City Clerk
First Reading: 06.11.2024
Second Reading:
Effective Date:
28 City Council
Staff Report
Subject:
Establish Compensation for Members of the Arts Commission Date:
June 25, 2024
Submitted By:
Sherri Conway, Assistant City Manager
Department:
City Manager's Office
Recommendation:
Adopt a Resolution of the City Council of the City of Rocklin Establishing Compensation for Members of the Arts Commission.
Background:
On January 24, 2023, the City Council adopted a Resolution enacting Chapter 2.43 to the Rocklin Municipal Code establishing an Arts Commission. The ordinance provides for compensation of Arts Commission members to be set by resolution of the City Council. The Arts Commission consists of five members holding regular monthly meetings and special meetings as needed. Consistent with the compensation established for the Parks and Recreation Commission (per Resolution No. 2021-94), the proposed annual compensation for members of the Arts Commission is $1,800 per member, for a total of $9,000 annually.
Fiscal Impact:
Compensation will result in annual expense from the General Fund of $9,000. There is no additional fiscal impact as this funding is included in the Fiscal Year 2024/25 operating budget.
Item Number 3E.
ATTACHMENTS:
1. Resolution
29 RESOLUTION NO. 2024-
RESOLUTIONOFTHE CITY OF ROCKLIN ESTABLISHING
COMPENSATION FOR MEMEBERS OF THE ARTS COMMISSION
WHEREAS, Rocklin Municipal Code Chapter 2.43 established the Arts Commission; and WHEREAS, Rocklin Municipal Code Chapter 2.43.050 states that compensation for a member of the Arts Commission shall be in an amount established by resolution of the City Council; and WHEREAS, Resolution No. 2021-94 established an annual compensation schedule for elected and appointed positions, identifying $1,800 annually per member of the Parks, Recreation and Arts Commission; and
WHEREAS, the Arts Commission as a stand-alone commission from the Parks and Recreation Commission, shall have consistent compensation as the Parks and Recreation Commission; NOW THEREFORE, the City Council of the City of Rocklin does resolve as follows:
Section 1. Compensation for members of the Arts Commissio n shall be $1,800 per Commissioner annually.
PASSED AND ADOPTED this 25th day of June, 2024 by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Councilmembers:
Councilmembers:
Councilmembers:
Councilmembers:
Greg Janda, Mayor
30 ATTEST:
_________________________________
Avinta Singh, City Clerk
31 City Council
Staff Report
Subject:
Fiscal Year 2024/25 Community Facilities Districts Bond Debt Service Fund Budgets and Collection of Special Taxes on the 2024/25 Tax Roll
Date:
June 25, 2024
Submitted By:
Megan Bressem, Management Analyst
Daniel Choe, Deputy Director of Administrative Services Department:
Administrative Services - Finance
Recommendation:
A
.
Adopt a Resolution of the City Council of the City of Rocklin Adopting Budgets for Community Facilities Districts Bond Debt Service Funds for Fiscal Year 2024/25.
B
.
Adopt a Resolution of the City Council of the City of Rocklin Requesting the Collection of Special Taxes on the 2024/25 Tax Roll.
Background:
The Fiscal Year (FY) 2024/25 budgets for the Special Tax District Bond Debt Service Funds are prepared and transmitted to the City Council for adoption. The districts' revenues are derived from special taxes placed on the County property tax rolls, while their expenses include debt service payments and administrative costs for the upcoming fiscal year. Staff ensures that all districts maintain sufficient reserves to guarantee timely payments. Staff recommends adopting Resolution A (Attachment 1) to approve the FY 2024/25 budgets for the bond debt service funds of Community Facilities Districts (CFD) No. 6, CFD No. 8, CFD No. 9, CFD No. 10, and CFD No. 11, enabling the collection of necessary revenue for debt service payments and administrative costs.
For the collection of special taxes, assessments, liens, and other charges on behalf of the City, the County of Placer requires the City to warrant the legality of these charges and to defend and indemnify the County against any legal challenges. Staff recommends adopting Resolution B (Attachment 2) to meet this requirement and to request the Auditor-Controller of Placer County to include these collections on the County 2024/25 tax rolls for CFD No. 1, CFD No. 5, CFD No. 6, CFD No. 8, CFD No. 9, CFD No. 10, CFD No. 11, and the City of Rocklin Park Development and Maintenance Taxes.
Fiscal Impact:
Adoption of the attached resolutions will allow special taxes to be levied and collected to pay for bond debt service and services provided in the City's special districts.
Item Number 3F.
32 ATTACHMENTS:
1. Resolution A - Special District Budgets
2. Resolution B - Collection of Special Taxes
33 RESOLUTION NO. 2024-
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROCKLIN
ADOPTING BUDGETS FOR COMMUNITY FACILTIES DISTRICTS
BOND DEBT SERVICE FUNDS FOR FISCAL YEAR 2024/25
WHEREAS, the City Council has committed to annually adopt a budget for all of the City’s Community Facilities Districts Bond Debt Service Funds.
NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Rocklin as follows:
Section 1. The budget for Rocklin Community Facilities District No. 6 (Sunset West-Drainage) Bond Debt Service Fund for fiscal year 2024/25 is hereby adopted as set forth in the attached hereto as Exhibit A and incorporated herein by this reference.
Section 2. The budget for Rocklin Community Facilities District No. 8 (Sunset West-Park Drive) Bond Debt Service Fund for fiscal year 2024/25 is hereby adopted as set forth in the attached hereto as Exhibit B and incorporated herein by this reference.
Section 3. The budget for Rocklin Community Facilities District No. 9 (Sunset West-West/Blue Oaks) Bond Debt Service Fund for fiscal year 2024/25 is hereby adopted as set forth in the attached hereto as Exhibit C and incorporated herein by this reference.
Section 4. The budget for Rocklin Community Facilities District No. 10 (Whitney Ranch) Bond Debt Service Fund for fiscal year 2024/25 is hereby adopted as set forth in the attached hereto as Exhibit D and incorporated herein by this reference.
Section 5. The budget for Rocklin Community Facilities District No. 11 (Sierra College Interchange) Bond Debt Service Fund for fiscal year 2024/25 is hereby adopted as set forth in the attached hereto as Exhibit E and incorporated herein by this reference.
PASSED AND ADOPTED this 25th day of June, 2024, by the following vote:
AYES: Councilmembers:
NOES: Councilmembers:
ABSENT: Councilmembers:
ABSTAIN: Councilmembers:
34 Page No. 2 to
Reso. No. 2024-
________________________________
Greg Janda, Mayor
ATTEST:
____________________________
Avinta Singh, City Clerk
35
to Reso. No. 2024-
Exhibit A
Stanford Ranch Community Facilities District No. 6
(Sunset West-Drainage)
Bond Debt Service Fund Budget
Fiscal Year 2024/25
FY 2024/25
Budget
Debt Service Fund:
Special Tax Revenues $ 68,700
Interest Income $ 2,100
Total Revenue $ 70,800
Expenditures
Principal Payment ($ 76,200)
Interest Payment ($ 2,600)
Administration Fees ($ 13,400)
County Special Tax Collection Fee ($ 700)
Total Expenditures: ($ 92,900)
Results of Operations: ($ 22,100)
Estimated Available Fund Balance 7/1/24: $ 115,300
Estimated Available Fund Balance 6/30/25: $ 93,200
Balance includes amounts available for upcoming fall debt service payments. 36
to Reso. No. 2024-
Exhibit B
Rocklin Community Facilities District No. 8
(Sunset West-Park Drive)
Bond Debt Service Fund Budget
Fiscal Year 2024/25
FY 2024/25
Budget
Debt Service Fund:
Special Tax Revenues $ 205,700
Interest Income $ 3,600
Total Revenue $ 209,300
Expenditures
Principal Payment ($ 197,200)
Interest Payment ($ 6,600)
Administration Fees ($ 13,400)
County Special Tax Collection Fee ($ 2,100)
Total Expenditures: ($219,300)
Results of Operations: ($ 10,000)
Estimated Available Fund Balance 7/1/24: $ 225,000
Estimated Available Fund Balance 6/30/25: $ 215,000
Balance includes amounts available for upcoming fall debt service payments. 37
to Reso. No. 2024-
Exhibit C
Rocklin Community Facilities District No. 9
(Sunset West-West/Blue Oaks)
Bond Debt Service Fund Budget
Fiscal Year 2024/25
FY 2024/25
Budget
Debt Service Fund:
Special Tax Revenues $ 241,800
Interest Income $ 4,200
Total Revenue $ 246,000
Expenditures
Principal Payment ($234,800)
Interest Payment ($ 7,900)
Administration Fees ($ 13,800)
County Special Tax Collection Fee ($ 2,400)
Total Expenditures: ($ 258,900)
Results of Operations: ($ 12,900)
Estimated Available Fund Balance 7/1/24: $ 265,200
Estimated Available Fund Balance 6/30/25: $ 252,300
Balance includes amounts available for upcoming fall debt service payments. 38
to Reso. No. 2024-
Exhibit D
Rocklin Community Facilities District No. 10
(Whitney Ranch)
Bond Debt Service Fund Budget
Fiscal Year 2024/25
FY 2024/25
Budget
Debt Service Fund:
Special Tax Revenues $ 3,295,500
Interest Income $ 59,400
Total Revenue $ 3,354,900
Expenditures
Principal Payment ($1,025,000)
Interest Payment ($2,130,400)
Administration Fees ($ 44,000)
County Special Tax Collection Fee ($ 33,000)
Total Expenditures:
($3,232,400)
Results of Operations: $ 122,500
Estimated Available Fund Balance 7/1/24: $ 3,724,900
Estimated Available Fund Balance 6/30/25: $ 3,847,400
Balance includes amounts available for upcoming fall debt service payments. 39
to Reso. No. 2024-
Exhibit E
Rocklin Community Facilities District No. 11
(Sierra College Interchange)
Bond Debt Service Fund Budget
Fiscal Year 2024/25
FY 2024/25
Budget
Debt Service Fund:
Special Tax Revenues $ 584,800
Interest Income $ 19,500
Total Revenue $ 604,300
Expenditures
Principal Payment ($ 395,000)
Interest Payment ($ 149,300)
Administration Fees ($ 22,600)
County Special Tax Collection Fee ($ 5,800)
Total Expenditures: ($ 572,700)
Results of Operations: $ 31,600
Estimated Available Fund Balance 7/1/24: $ 944,300 Estimated Available Fund Balance 6/30/25: $ 975,900
Balance includes amounts available for upcoming fall debt service payments. 40 RESOLUTION NO. 2024-
RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF ROCKLIN
REQUESTING THE COLLECTION OF SPECIAL TAXES
ON THE 2024/25 TAX ROLL
WHEREAS, the County of Placer requires, as a condition of the collection of taxes, assessments, liens and other charges on behalf of the City that the City warrant the legality of said charges and defend and indemnify the County from any challenge to the legality thereof.
NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Rocklin as follows:
Section 1. The Auditor-Controller of Placer County is requested to attach for collection on the County 2024/25 tax rolls the following:
a. City of Rocklin Community Facility District No. 1 special taxes (“Taxes”) as set forth in Rocklin City Council Resolution No. 86-102 and Ordinance No. 802;
b. City of Rocklin Community Facility District No. 5 special taxes (“Taxes”) as set forth in Resolution No. 96-255 and Ordinance No. 805; c. City of Rocklin Community Facility District No. 6 special taxes (“Taxes”) as set forth in Resolution No. 98-286 and Ordinance No. 792; d. City of Rocklin Community Facility District No. 8 special taxes (“Taxes”) as set forth in Resolution No. 98-290 and Ordinance No. 793; e. City of Rocklin Community Facility District No. 9 special taxes (“Taxes”) as set forth in Resolution No. 98-315 and Ordinance No. 796; f. City of Rocklin Community Facility District No. 10 special taxes (“Taxes”) as set forth in Resolution No. 2005-81 and Ordinance No. 895; g. City of Rocklin Community Facility District No. 11 special taxes (“Taxes”) as set forth in Rocklin City Council Resolution No. 2006-299. h. City of Rocklin Park Development and Maintenance Taxes as set forth in Rocklin City Council Resolution No. 2018-298, Resolution No. 2009-186, Resolution No. 98-172, and Ordinance No. 7
Section 2. The City warrants and represents that the Taxes comply with all requirements of state law, including, but not limited to, Articles XIIIC and XIIID of the California Constitution (Proposition 218).
Section 3. The City releases and discharges County, and its officers, agents and employees from any and all claims, demands, liabilities, costs and expenses, damages, causes of action, and judgments in any manner arising out of the collection by County of any of the Taxes on behalf of City.
41
Reso. No. 2024-
Section 4. The City agrees to and shall defend, indemnify, and hold harmless the County, its officers, agents, and employees (the “Indemnified Parties”) from any and all claims, demands, liabilities, costs and expenses, damages, causes of action, and judgments in any manner arising out of the collection by County of any of the Taxes requested to be collected by County for City, or in any manner arising out of City establishment and imposition of said Taxes. City agrees that, in the event a judgment is entered in a court of law against any of the Indemnified Parties as a result of the collection of one of the Taxes, the County may offset the amount of the judgment from any other monies collected by the County on behalf of the City, including property taxes.
Section 5. The City agrees that its officers, agents and employees will cooperate with the County in answering questions referred to City by County from any person concerning the City’s taxes, and that City will not refer such persons to County officers and employees for response.
Section 6. The City agrees to pay such reasonable and ordinary charges as the County may prescribe to recoup its costs in placing on the tax rolls and collecting the taxes, as provided by Government Code sections 29304 and 51800.
PASSED AND ADOPTED this 25th day of June, 2024, by the following vote:
AYES: Councilmembers:
NOES: Councilmembers:
ABSENT: Councilmembers:
ABSTAIN: Councilmembers:
____________________________________
Greg Janda, Mayor
ATTEST:
____________________________
Avinta Singh, City Clerk
42 City Council
Staff Report
Subject:
Placer County Treasurer's Investment Pool - Designation of Authorized Staff
Date:
June 25, 2024
Submitted By:
Daniel Choe, Deputy Director of Administrative Services Department:
Administrative Services - Finance
Recommendation:
Adopt a Resolution of the City Council of the City of Rocklin Authorizing Investment of Monies in the Placer County Treasurer's Investment Pool, and Designating Staff Authorized to Deposit and Withdraw Monies.
Background:
On February 26, 2013, the City Council adopted Resolution No. 2013-38, approving the investment of monies in the Placer County Treasurer's Investment Pool (PCTIP), and designating certain staff members to make deposits and withdraws. Investing in the PCTIP is consistent with the City's Investment Policy. As of March 31, 2024, the City has approximately $8.9 million deposited in the PCTIP. The PCTIP requires that the City staff authorized to move funds into or out of the PCTIP be identified and be annually approved by City Council resolution.
Therefore, staff recommends reaffirming the authorization to invest monies in the PCTIP and designating the City Manager, the City Treasurer, and the City Treasurer's designees to have the authority to make deposits and withdraws from the PCTIP.
Fiscal Impact:
There is no direct fiscal impact from the staff recommendation. As of March 31, 2024, the net reported rate of return was 3.339%, with the total assets under management of $8,941,577.
Item Number 3G.
ATTACHMENTS:
1. Resolution
43 RESOLUTION NO. 2024-
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROCKLIN
AUTHORIZING INVESTMENT OF MONIES IN THE PLACER COUNTY
TREASURER’S INVESTMENT POOL, AND DESIGNATING STAFF AUTHORIZED TO
DEPOSIT AND WITHDRAW MONIES
WHEREAS, on September 8, 1992, the Placer County Board of Supervisors adopted Resolution No. 92-264 approving the procedures of Government Code Section 53684, authorizing deposit of local agency funds into the Placer County Treasurer’s Investment Pool; and
WHEREAS, pursuant to Government Code Section 27136, the Placer County Treasurer may take such time as necessary to honor a request for withdrawal so as to ensure that such withdrawal does not adversely affect the interest of other depositors; and
WHEREAS, the Placer County Treasurer requires a minimum of 24 hours written notice of funds to be withdrawn or deposited; and
WHEREAS, individual investment securities are kept in a third-party safekeeping account to provide the public with the highest degree of protection; and WHEREAS, due to the annual requirement to designate authorized staff, it is necessary to reaffirm the list of City staff authorized to deposit and withdrawal monies in the Placer County Treasurer’s Investment Pool.
NOW, THEREFORE, the City Council of the City of Rocklin does resolve as follows:
Section 1. The City Council of the City of Rocklin authorize the deposit and withdrawal of City of Rocklin monies into the Placer County Treasurer’s Investment Pool for the purpose of investment in accordance with the Placer County Treasurer’s policies and procedures, as well as, applicable state statues.
Section 2. The City Council does hereby authorize the City Manager, the City Treasurer and the City Treasurer’s designees to deposit and withdraw of monies to the Placer County Treasurer’s Investment Pool.
PASSED AND ADOPTED this 25th day of June, 2024, by the following vote:
AYES: Councilmembers:
NOES: Councilmembers:
ABSENT: Councilmembers:
ABSTAIN: Councilmembers:
44
Reso. No. 2024-
____________________________________
Greg Janda, Mayor
ATTEST:
____________________________
Avinta Singh, City Clerk
45 City Council
Staff Report
Subject:
Delegation of Investment Decision Authority and Adoption of Legislative Policy No. 1 - Investment Policy
Date:
June 25, 2024
Submitted By:
Megan Bressem, Management Analyst
Daniel Choe, Deputy Director of Administrative Services Department:
Administrative Services - Finance
Recommendation:
Adopt a Resolution of the City Council of the City of Rocklin Delegating Authority to Make Investment Decisions to the City Treasurer and Adopting Legislative Policy No. 1 - Investment Policy.
Background:
City of Rocklin Legislative Policy No. 1 (Investment Policy) establishes standards and guidelines for the direction, management, and oversight for the majority of the City’s investable cash and funds and identifies the investment objectives, tolerance for risk, constraints on the investment portfolio, and the manner in which the investments will be managed and monitored. Investment Policy Section XIII requires annual review of the City's Investment Policy to ensure its consistency with the overall objectives of preservation of principal, liquidity and return. The policy is also reviewed for relevance to current law, financial and economic trends, and the needs of the City. Adoption of the Investment Policy is required by the City Council of the City of Rocklin each year by resolution.
On May 9, 2023, the City Council adopted Resolution No. 2023-067, approving the Investment Policy for Fiscal Year (FY) 2023/24 and delegated authority to make all investment decisions to the City Treasurer for FY 2023/24 consistent with California Government Code 53607 and the Investment Policy.
City staff and the Investment Team at Chandler Asset Management, Inc., who provides investment management and advisory services to the City, reviewed the Investment Policy to identify opportunities for the improvement of and to better align the policy with the City’s investment objectives, California Government Code, and industry best practices. Proposed revisions to the policy this year include:
a. providing clarity by adding reference to the relevant regulations for participants in the investment process,
b. adding an additional prohibited investment practice for the purchase of a security with a Item Number 3H.
46 forward settlement date exceeding 45 days from the time of the investment, c. further defining the institutions eligible to transact investments with the City, and d. incorporating minor grammatical corrections.
On April 18, 2024, the City's Investment Advisory Committee reviewed the proposed changes and subsequently continued the updated City Investment Policy to the City Council for adoption.
Staff recommends the City Council adopt a resolution delegating authority to make investment decisions to the City Treasurer for the fiscal year commencing July 1, 2024 and ending June 30, 2025, and approving Legislative Policy No. 1 - Investment Policy, which is included as Exhibit A to the resolution (Attachment 2). A redline copy of the policy is included as Attachment 3 for reference.
Fiscal Impact:
There is no direct fiscal impact to the General Fund from the staff recommendation.
ATTACHMENTS:
1. Resolution
2. Resolution Exhibit A - Proposed Investment Policy
3. Investment Policy - Redline
47 RESOLUTION NO. 2024-
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROCKLIN
DELEGATING AUTHORITY TO MAKE INVESTMENT DECISIONS
TO THE CITY TREASURER AND ADOPTING
LEGISLATIVE POLICY NO. 1 – INVESTMENT POLICY
WHEREAS, the City of Rocklin’s Investment Policy and California Government Code Section 53607 authorize the City Council to delegate authority to the City Treasurer to make all investment decisions for a one-year period; and WHEREAS, pursuant to the Investment Policy, the City’s Investment Policy shall be reviewed annually to ensure its consistency with the overall objectives of preservation of principal, liquidity, and return, and its relevance to current laws and regulations.
NOW THEREFORE, the City Council of the City of Rocklin does resolve as follows:
Section 1. Pursuant to Section 53607 of the California Government Code, the City Council hereby delegates authority to make all investment decisions for the City’s investment portfolio to the City Treasurer. Such delegation shall be for the period commencing July 1, 2024 and ending June 30, 2025. This authority shall supersede Resolution No. 2023-067.
Section 2. Pursuant to the Rocklin Legislative Policy No. 1 – Investment Policy, City of Rocklin Statement of Investment Policy attached hereto as Exhibit A, is hereby confirmed through the 2024/25 fiscal year.
PASSED AND ADOPTED this 25th day of June, 2024, by the following vote:
AYES: Councilmembers:
NOES: Councilmembers:
ABSENT: Councilmembers:
ABSTAIN: Councilmembers:
____________________________________
Greg Janda, Mayor
ATTEST:
____________________________
Avinta Singh, City Clerk
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Exhibit A
CITY OF ROCKLIN
STATEMENT OF INVESTMENT POLICY
INTRODUCTION
This statement is intended to outline the policies for the prudent investment of the City’s Funds and to provide guidelines for suitable investments.
The ultimate goal is to enhance the economic status of the City while safeguarding its assets.
The City’s Cash Management System is designed to accurately monitor and forecast expenditures and revenues, thus enabling the City to invest funds to the fullest extent possible. The City’s investment portfolio shall be structured with the objective of attaining a market rate of return throughout budgetary and economic cycles, provided that all investments meet the criteria established for safety and liquidity.
The City’s investment policies and practices are based upon Federal, State, and Local laws and prudent money management. The primary goals of these policies are:
1. To assure compliance with all Federal, State and Local laws governing the investment of monies.
2. To protect the principal monies.
3. To ensure the investment portfolio remains sufficiently liquid to enable the City of Rocklin to meet all operating requirements which might be reasonably anticipated.
4. To attain a market rate of return on investment within the parameters of this Statement of Investment Policy and the Investment Portfolio Guidelines.
I. SCOPE
It is intended that this policy cover all funds and investment activities under the direct authority of the City in accordance with California Government Code Section 53600 et seq., the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) 49
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and local laws. Funds included are General Fund, Special Revenue Funds, Debt Service Funds, Capital Project Funds, Permanent Funds and Trust Funds.
This policy will not cover bond proceeds obtained from bond issues which are not direct obligations of the City, and which are not under the direct authority of the City. The bond proceeds will be invested in accordance with the Bond Indenture Agreement and applicable State and Federal regulations.
II. OBJECTIVES
1. Safety of Principal
Safety of principal is the foremost objective of the City of Rocklin. Investments will be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. To attain this objective, the Agency will diversify its investments by investing funds among a variety of securities with independent returns. The City shall seek to preserve principal by mitigating the two types of risk: credit risk and market risk.
2. Liquidity
Liquidity is the second most important objective of the City of Rocklin. This is accomplished by structuring the portfolio so that securities mature concurrent with cash needs to meet anticipated demands. It is important that an investment contain the feature of being easily sold at any time with a minimal risk of loss of some portion of principal or interest. The investment portfolio will remain sufficiently liquid to meet all operating requirements that may be reasonably anticipated.
3. Return on Investment
The City’s Fund shall seek to attain a market-average rate of return throughout economic cycles. The investment portfolio will be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the investment risk constraints for safety and liquidity needs. 50
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III. 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.”
City employees and other authorized persons responsible for managing City funds, acting in accordance with written procedures and the Investment Policy and exercising due diligence, shall not be held personally responsible for a specific security’s credit risk or market price changes, provided that deviations from expectations are reported in a timely manner and that appropriate action is taken to control adverse developments.
IV. DELEGATION OF AUTHORITY
Authority to manage the City’s investment program is derived from California Government Code, Sections 41006 and 53600 et seq.
The City Council is responsible for the management of the City’s funds, including the administration of this investment policy. Management responsibility for the cash management of the City’s funds may be delegated to the City Treasurer.
The City Treasurer 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 51
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transaction except as provided under the terms of this policy and the procedures established by the City Treasurer.
The City may engage the services of one or more external investment advisers, who are registered under the Investment Advisers Act of 1940, to assist in the management of the City’s investment portfolio in a manner consistent with the City’s objectives. External investment advisers may be granted discretion to purchase and sell investment securities in accordance with this investment policy.
The City's overall investment program shall be designed and managed with a degree of professionalism that is worthy of the public trust. The City recognizes that in a diversified portfolio, occasional measured losses may be inevitable and must be considered within the context of the overall portfolio’s return and the cash flow requirements of the City.
V. 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. City employees and the City’s Investment Advisory Committee involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the Investment Policy of which could impair their ability to make impartial investment recommendations and/or decisions. The City’s Investment Advisory Committee and City employees involved in the investment process shall disclose any material financial interests in financial institutions with which the City may conduct business, and they shall further disclose any reportable personal financial/investment positions that could be related to the performance of the City’s portfolio. The Investment Advisory Committee and City employees involved in the investment process shall subordinate their personal investment transactions to those of the City, particularly with regard to the timing of purchases and sales.
All participants in the investment process are required to comply with terms of the Political Reform Act, Fair Political Practices Commission Regulations promulgated thereunder (2 C.C.R. §§ 18110 through 18998), the City’s Conflict of Interest Policy, including, without limitation, filing of Form 700, notification and recusal obligations, and Government Code section 1090 prohibitions.
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VI. INVESTMENTS
1. AUTHORIZED INVESTMENTS
The City is governed by the California Government Code, Sections 53600 et seq. 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 requirements listed in this section apply at the time the security is purchased.
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.
Within the context of these limitations, the following investments are authorized, as further limited herein:
A. United States Treasury Bills, Notes, Bonds, or certificates of indebtedness, or those for which the faith and credit of the United States are pledged for payment of principal and interest. There is no limitation as to the percentage of the Fund that can be invested in this category as they are both safe and liquid.
The maximum maturity is five (5) years.
B. Municipal Securities including obligations of the City of Rocklin, the State of California and any local agency within the State of California, provided that:
The securities are rated in a rating category of “A” or its equivalent or better by at least one nationally recognized statistical rating organization (“NRSRO”).
No more than 5% of the portfolio may be invested in any single issuer. No more than 30% of the portfolio may be in Municipal Securities. The maximum maturity does not exceed five (5) years.
C. Municipal Securities (Registered Treasury Notes or Bonds) of any of the other 49 states in addition to California, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by a state or by a department, board, agency, or authority of any of the other 49 states, in addition to California.
The securities are rated in a rating category of “A” or its equivalent or better by at least one nationally recognized statistical rating organization (“NRSRO”).
No more than 5% of the portfolio may be invested in any single issuer. No more than 30% of the portfolio may be in Municipal Securities. 53
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The maximum maturity does not exceed five (5) years.
D. Federal Agencies or United States Government-Sponsored Enterprise obligations, participations, or other instruments, including those issued by or fully guaranteed as to principal and interest by federal agencies or United States government-sponsored enterprises. There are no limits on the dollar amount or percentage that the City may invest in Federal Agency or Government-Sponsored Enterprises (GSEs), 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%.
E. Banker’s Acceptances, provided that:
They are issued by institutions which have short-term debt obligations rated “A-1” or its equivalent or better by at least one NRSRO; or long-term debt obligations which are rated in a rating category of “A” or its equivalent or better by at least one NRSRO.
No more than 40% of the portfolio may be invested in Banker’s Acceptances.
No more than 5% of the portfolio may be invested in any single issuer. The maximum maturity does not exceed 180 days.
F. Commercial paper, provided that the securities are issued by an entity that meets all of the following conditions in either paragraph (a) or (b) and other requirements specified below:
a. Securities issued by corporations:
(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:
(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.
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(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.
No more than 25% of the Agency’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. Negotiable Certificates of Deposit (NCDs), issued by a nationally or state- chartered bank, a savings association or a federal association, a state or federal credit union, or by a federally licensed or state-licensed branch of a foreign bank, provided that:
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 NRSRO; or long-term obligations rated in a rating category of “A” or its equivalent or better by at least one NRSRO. No more than 30% of the total portfolio may be invested in NCDs (combined with CDARS).
No more than 5% of the portfolio may be invested in any single issuer. The maximum maturity does not exceed five (5) years.
H. Repurchase Agreements collateralized with securities authorized under California Government Code, maintained at a level of at least 102% of the market value of the Repurchase Agreement. There are no limits on the dollar amount or percentage that the City may invest, provided that:
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). The maximum maturity does not exceed one (1) year.
I. Supranationals, provided that:
Issues are US dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, International Finance Corporation, or Inter-American Development Bank.
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The securities are rated in a rating category of “AA” or its equivalent or better by a NRSRO.
No more than 30% of the total portfolio may be invested in these securities.
No more than 10% of the portfolio may be invested in any single issuer. The maximum maturity does not exceed five (5) years.
J. State of California Local Agency Investment Fund (LAIF), provided that:
The City may invest up to the maximum amount permitted by LAIF. LAIF’s investments in instruments prohibited by or not specified in the City’s policy do not exclude the investment in LAIF itself from the City’s list of allowable investments, provided LAIF’s reports allow the City Treasurer to adequately judge the risk inherent in LAIF’s portfolio.
K. Corporate Medium-term notes (MTNs), provided that:
The issuer is a corporation organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States.
The securities are rated in a rating category of “A” or its equivalent or better by at least one NRSRO.
No more than 30% of the total portfolio may be invested in MTNs. No more than 5% of the portfolio may be invested in any single issuer. The maximum maturity does not exceed five (5) years.
L. Federally Insured Time Deposits (Non-Negotiable Certificates of Deposit) in state or federally chartered banks, savings and loans, or credit unions, provided that:
The amount per institution is limited to the maximum covered under federal insurance.
No more than 20% of the portfolio will be invested in a combination of federally insured and collateralized time deposits.
The maximum maturity does not exceed five (5) years.
M. Mutual Funds and Money Market Mutual Funds that are registered with the Securities and Exchange Commission under the Investment Company Act of 1940, provided that:
a. M UTUAL 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 56
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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.
b. M ONEY 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:
(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.
c. No more than 20% of the total portfolio may be invested in these securities.
N. Collateralized Bank Deposits. The 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.
O. Asset-Backed, Mortgage-Backed, Mortgage Pass-Through Securities and Collateralized Mortgage Obligations from issuers not defined in sections A. or D. of the Authorized Investments Section of this Policy, provided that:
The securities are rated in a rating category of “AA” or its equivalent or better by a NRSRO.
No more than 20% of the total portfolio may be invested in these securities.
No more than 5% of the portfolio may be invested in any single Asset- Backed or Commercial Mortgage security issuer.
The maximum legal final maturity does not exceed five (5) years.
P. Placer County Treasurer’s Investment Pool. The City may invest in the Placer County Treasurer’s Investment Pool established by the Placer County Treasurer for the benefit of local agencies. No more than 25% of the market 57
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value of the Fund may be invested in the Placer County Treasurer’s Investment Pool.
2. PROHIBITED INVESTMENT VEHICLES AND PRACTICES
A. State law notwithstanding, any investments not specifically described herein are prohibited, including, but not limited to futures and options.
B. In accordance with Government Code, Section 53601.6, investment in inverse floaters, range notes, or mortgage derived interest-only strips is prohibited.
C. 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.
D. Trading securities for the sole purpose of speculating on the future direction of interest rates is prohibited.
E. Purchasing or selling securities on margin is prohibited.
F. The use of reverse repurchase agreements, securities lending or any other form of borrowing or leverage is prohibited.
G. The purchase of foreign currency denominated securities is prohibited.
H. The purchase of a security with a forward settlement date exceeding 45 days from the time of the investment 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.
VII. AUTHORIZED FINANCIAL INSTITUTIONS, DEPOSITORIES, AND BROKER/DEALERS To the extent practicable, the City Treasurer shall endeavor to complete investment transactions using a competitive bid process whenever possible. The City Treasurer will determine which financial institutions are authorized to provide investment services to the City. It shall be the City’s policy to purchase securities only from authorized institutions and firms.
The City Treasurer shall maintain procedures for establishing a list of authorized broker/dealers and financial institutions which are approved for investment purposes that are selected through a process of due diligence as determined by the City. Due inquiry shall determine whether such authorized broker/dealers, and the individuals covering the City are reputable and trustworthy, knowledgeable and experienced in Public Agency investing and able to meet all of their financial obligations. These 58
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institutions may include "primary" dealers or regional dealers that qualify under Securities and Exchange Commission (SEC) Rule 15c3-1 (uniform net capital rule).
In accordance with Section 53601.5, institutions eligible to transact investment business with the City include:
Institutions licensed by the state and proof of FINRA certification as a broker- dealer, as defined in Section 25004 of the Corporations Code. Institutions that are members of a federally regulated securities exchange. Primary government dealers as designated by the Federal Reserve Bank and non- primary government dealers.
Nationally or state-chartered banks.
The Federal Reserve Bank.
Direct issuers of securities eligible for purchase.
Selection of financial institutions and broker/dealers authorized to engage in transactions will be at the sole discretion of the City, except where the City utilizes an external investment adviser in which case the Agency may rely on the adviser for selection.
All financial institutions which desire to become qualified bidders for investment transactions (and which are not dealing only with the investment adviser) must supply the City Treasurer with audited financials and a statement certifying that the institution has reviewed the California Government Code, Section 53600 et seq . and the City’s investment policy. The City Treasurer will conduct an annual review of the financial condition and registrations of such qualified bidders.
Public deposits will be made only in qualified public depositories as established by State law. Deposits will be insured by the Federal Deposit Insurance Corporation, or, to the extent the amount exceeds the insured maximum, will be collateralized in accordance with State law.
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.
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VIII. 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.
IX. DELIVERY, SAFEKEEPING AND CUSTODY OF SECURITIES
Delivery-versus-Payment (DVP). All investment transactions shall be conducted on a delivery-versus-payment basis.
Safekeeping and Custody. 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 by the City from the custodian listing all securities held in safekeeping with current market data and other information. 60
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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.
X. 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:
1. The diversification requirements included in the “Authorized Investments” section of this policy are designed to mitigate credit risk in the portfolio.
2. 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.
3. 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 the City’s risk preferences.
4. If a security owned by the City is downgraded to a level below the requirements of this policy, making the security ineligible for additional purchases, the following steps will be taken:
Any actions taken related to the downgrade by the investment manager will be communicated to the City Treasurer in a timely manner.
If a decision is made to retain the security, the credit situation will be monitored and reported to the City Council.
Mitigating Market Risk in the Portfolio
Market risk is the risk that the portfolio value will fluctuate due to changes in the general level of interest rates. The City recognizes that, over time, longer-term portfolios have the potential to achieve higher returns. On the other hand, longer-term portfolios have higher volatility of return. The City will mitigate market risk by providing adequate liquidity for short-term cash needs, and by making longer-term investments only with funds that are not needed for current cash flow purposes.
The City further recognizes that certain types of securities, including variable rate securities, securities with principal paydowns prior to maturity, and securities with embedded options, will affect the market risk profile of the portfolio differently in different interest rate environments. The City, therefore, adopts the following strategies to control and mitigate its exposure to market risk:
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The City will maintain a minimum of six months of budgeted operating expenditures in short term investments to provide sufficient liquidity for expected disbursements.
The maximum stated final maturity of individual securities in the portfolio will be five (5) years, except as otherwise stated in this policy.
The duration of the portfolio will generally be approximately equal to the duration (typically, plus or minus 20%) of a Market Benchmark, an index selected by the City based on the City’s investment objectives, constraints and risk tolerances.
XI. REPORTING
Monthly Reporting
The City Treasurer shall provide to the City Council a monthly investment report detailing transactions in the City’s portfolio as required per California Government Code section 53607.
Quarterly Reporting
The City Treasurer shall render a quarterly report to the City Council showing the type of investment, institution, date of maturity, amount of deposit, current market value for all securities with a maturity of more than twelve months, rate of interest, type and amount of funds under the management of contract investment managers, the City’s compliance with the statement of investment policy, the ability of the City of meet cash flow needs for the next six months, and such data as may be required by the City Council as required per California Government Code section 53646.
Annual Reports
An annual report will be presented to the City Council. This report will include comparisons of the City’s return to the market benchmark return, suggest policies and improvements that might enhance the investment program, and may include an investment plan for the coming year.
XII. INVESTMENT CONTROLS
The City Treasurer is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the entity are protected from loss, theft or misuse. The internal control structure shall be designed to provide reasonable assurance that these objectives are met. The concept of reasonable assurance recognizes 62
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that (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the valuation of costs and benefits requires estimates and judgments by management.
XIII. POLICY ADOPTION
The City’s Investment Policy shall be adopted by resolution of the City Council. The Policy shall be reviewed at least annually to ensure its consistency with the overall objectives of preservation of PRINCIPAL, LIQUIDITY, AND RETURN, and its relevance to current law, financial and economic trends, and to meet the needs of the City of Rocklin and any modifications made thereto must be approved by the City Council. The City’s Investment Policy shall be submitted annually to the City Council. 63
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Glossary
GLOSSARY
ACCRUED INTEREST - Interest on a bond that has accumulated since the last interest payment.
The buyer pays the seller the bond price plus accrued interest.
AGENCIES - Federal agency securities.
BANKER’S ACCEPTANCE - A time draft drawn on a bank and accepted by that bank as ultimate liability for payment. Used most often to finance import and export transactions. Banker’s acceptances are also collateralized by the underlying merchandise being contracted in the import-export transaction. It is a money market instrument when guaranteed by a bank.
BASIS POINT - Smallest measure used in quoting yields on bonds and notes; one one-hundredth of a percentage point (.01 percent or .0001).
BOND - A debt instrument in which the investor lends money to the bond issuer, who agrees to pay a stated rate of interest over a specified period of time. Very simply a bond is nothing more than a promissory note which is traded in the financial markets. The investor’s position is that of lender.
BOOK VALUE - The value at which the investor holds on their books as their invested amount in a security. This may be more or less’ than the current face value of the security depending if the security was purchased at a price more or less than the face value.
BROKER - A broker brings buyers and sellers together for a commission paid by the initiator of the transaction or by both sides; he does not hold a position. In the money market, brokers are active in markets in which banks buy and sell money and in interdealer markets.
CAPITALIZATION - A firm’s capital structure, composed of total securities issued by the corporation, including bonds, debentures, preferred and common stock, and all surpluses (retained earnings).
CERTIFICATE OF DEPOSIT (CD) (TIME DEPOSIT) - An interest-bearing time deposit issued by banks with a specific maturity evidenced by a certificate. Large denomination CD’s are typically negotiable.
CHURNING – excessive trading in a customer’s account designed solely to increase broker’s commissions.
COLLATERAL - Securities, evidence of deposit or other property which a borrower pledges to secure repayment of a loan. Also refers to securities pledged by a bank to secure deposits of public monies.
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Glossary
COLLATERALIZED OBLIGATIONS - Notes secured by collateral. The collateral is usually comprised of U.S. Government securities which are held by a third-party-trustee who also insures that adequate collateral is posted at all times.
COLLATERALIZED MORTGAGE OBLIGATION (CMO) - Derivative security created by dividing the cash flows of a pool of mortgages into obligations with different maturities.
COMMERCIAL PAPER - Unsecured, bearer obligations (maturity usually 270 days or less) issued by corporations, either at a discount and redeemed at par, or at par and pay interest.
COMMON STOCK - Units (shares) of ownership in a public corporation. Shareholders have control over corporate affairs through voting rights, and dividends are paid to common stockholders after preferred stock shareholders.
CONFIRMATION - A piece of paper detailing the conditions and terms of a transaction. Delivered to the customer on or before settlement. It serves as a bill for purchases and an advisory notice for sales.
CORPORATE BONDS - A debt instrument issued by a corporation which normally pays interest on specific dates and repays the principal at maturity.
COUPON - (a) The annual rate of interest that a bond’s issuer promises to pay the bondholder on the bond’s face value. (b) A certificate attached to a bond evidencing interest due on a payment date.
CREDIT RISK - The risk that an obligation will not be met in a timely fashion with the result being a temporary or even permanent loss to the lender.
DEALER - A dealer, as opposed to a broker, acts as a principal in all transactions, buying and selling for his own account.
DEBENTURE - A bond secured only by the general credit of the issuer.
DEBT TO EQUITY RATIO - Solvency ratio of total long-term debt to total stockholder’s equity.
DELIVERY VERSUS PAYMENT - There are two methods of delivery of securities: delivery versus payment and delivery versus receipt (also called free). Delivery versus payment is delivery of securities with an exchange of money for the securities. Delivery versus receipt is delivery of securities with an exchange of a signed receipt for the securities.
DERIVATIVE - A broad term referring to any security which derives its value from another underlying asset or index.
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Glossary
DISCOUNT - The difference between the cost price of a security and its value at maturity when quoted at lower than face value. A security selling below original offering price shortly after sale also is considered to be at a discount.
DISCOUNT RATE - Interest rate that the Federal Reserve charges for loans to member banks.
DISCOUNT SECURITIES - Non-interest-bearing money market instruments that are issued at a discount and redeemed at a maturity for full face value; i.e., U.S. Treasury bills.
DIVERSIFICATION - Spreading a portfolio across a range of security types, industries or geographic areas to limit risk.
FACE VALUE - The same as par value. Face value is the principal amount of a bond.
FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC) - A federal agency that insures bank deposits currently $250,000 per depositor.
FEDERAL FARM CREDIT BANK (FFCB) - Government instrumentality which issues notes and bonds to provide funds for its member banks for the purchase of farm land, equipment and commodities.
FEDERAL HOME LOAN BANKS (FHLB) - Government instrumentality consisting of twelve regional banks owned by savings and homestead associations which issue bonds and notes to finance home building and mortgage loans of their member associates.
FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC OR FREDDIE MAC) - Debt issued by FHLMC, a government instrumentality, to facilitate real estate lending. FHLMC issues short-term debt backed by its own full faith and credit, and it issued long-term debt backed by mortgages with repayment guaranteed by FHLMC.
FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA OR FANNIE MAE) – A government- sponsored-publicly-owned corporation whose stock trades on the New York Stock Exchange.
FNMA issues short-term debt backed by its own full faith and credit. FNMA purchases FHA, VA, and FHDA mortgages through the sale of its corporate debenture notes. These notes are backed by the mortgages with repayment guaranteed by FNMA.
FLOATER - A floating rate security in which the interest note varies with an index such as U.S.
Treasury Bills or LIBOR (London Interbank Offered Rate).
GENERAL OBLIGATION BOND (G.O.) - A municipal bond secured by the full faith and credit of the municipality.
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Glossary
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA OR GINNIE MAE) - Securities guaranteed by GNMA and issued by mortgage bankers, commercial banks, savings and loan associations and other institutions. Security holder is protected by full faith and credit of the U.S.
Government. Ginnie Mae securities are backed by FHA, VA or FMHM mortgages. The term pass- through is often used to describe Ginnie Maes.
GUARANTEED INVESTMENT CONTRACTS (GICs) - An agreement acknowledging receipt of funds for deposit, specifying terms for withdrawal, and guaranteeing a rate of interest to be paid.
Uninsured, non-guaranteed obligations of insurance companies, permitted for public investment in a few states. Risk varies according to the credit risk of the issuing company.
HEDGE/HEDGING - Technique designed to counteract the risk of loss from price changes in the market.
HOLDING COMPANIES - A corporation with controlling interest in one or more corporations.
INSTRUMENTALITIES - See U.S. government instrumentality obligations.
INTEREST - The sum charged for borrowing money.
INTEREST-ONLY SECURITY (I0) - Security derived from the interest rate portion of a pool of mortgage securities (separated from the principal portion).
INTEREST RATE RISK - The uncertainty of investment return due to changes in the market rates of interest. For investments that generate a fixed rate of return, the value of that investment is inversely related to the movement of market rates of interest.
INVERSE FLOATER - Structured note or derivative designed to rise in yield as interest rates fall.
Also called reverse floater. Extremely volatile security not recommended for public funds.
INVESTMENT COMPANY ACT OF 1940 - Regulates investment companies.
LEVERAGE - Money borrowed to reinvest in order to increase the return on invested capital. A municipality may leverage funds through the issuance of taxable notes, reverse repurchase agreements and purchasing securities with embedded leverage. Leverage may be embedded inside a security or it may be applied to an investment portfolio as a whole.
LIQUIDITY - A liquid asset is one that can be converted easily and rapidly into cash without a substantial loss of value. In the money market, a security is said to be liquid if the spread between bid and asked prices is narrow and reasonable size can be done at those quotes. 67
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Glossary
LIQUIDITY RISK - The risk that a financial institution or other organization will not have sufficient cash on hand to meet its obligations; or in the case of a specific investment instrument, the risk that it will not be easily convertible to cash.
LOCAL GOVERNMENT INVESTMENT POOL (LGIP) - The aggregate of all funds from a political subdivision that are placed in the custody of the State Treasurer for investment and reinvestment.
LONG TERM - Securities held more than six months or bonds maturing in more than five years.
MARK TO MARKET - Adjustment of an account or portfolio to reflect actual market price rather than book price, purchase price or some other valuation.
MARKET MAKER - A broker/dealer maintaining an inventory in a security.
MARKET RATE OF RETURN - Return that is based on some market index that acts as a proxy for the market, such as the “Standard & Poor’s 500” stock index, which is used to gauge the returns on individual securities or portfolios. The City uses as a benchmark the average return on two- year U.S. Treasury Notes.
MARKET RISK - The risk of a decline in the price of securities because of a general falling market.
MARKET VALUE - The price at which a security is trading and could presumably be purchased or sold.
MASTER REPURCHASE AGREEMENT - A written contract covering all future transactions between the parties to repurchase-reverse repurchase agreements that establishes each party’s rights in the transactions. A master agreement will often specify, among other things, the right of the buyer-lender to liquidate the underlying securities in the event of default by the seller-borrower.
MATURITY - The date upon which the principal or stated value of an investment become due and payable.
MEDIUM-TERM NOTES - Issuers register with the SEC allowing for notes to be issued at various times, rates and maturities from one to ten years as the issuer’s financing needs dictate.
MONEY MARKET - The market in which short-term debt instruments (bills, commercial paper, bankers’ acceptances, etc.) are issued and traded.
MONEY MARKET FUND - An open-end investment company (mutual fund) that invests in money market instruments regulated by the Securities and Exchange Commission. It is a highly liquid investment that pays money market rates of interest.
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Glossary
MONEY MARKET INSTRUMENTS - Highly liquid debt instruments usually with maturities of one year or less. Money market instruments include repurchase agreements, reverse repurchase agreements, negotiable certificates of deposit, banker’s acceptances, commercial paper, Treasury bills and other short-term direct obligations of U.S. government agencies and instrumentalities.
MORTGAGE BACKED SECURITY (MBS) - A pool of individual mortgages which is packaged and sold to investors at a specified coupon rate, maturity date, and face value. Individual mortgage loans are purchased from lenders by GNMA, FNMA, & FHLMC, thus converting the lenders loan assets to dollars, in turn making money available again for borrowing. GNMA, FNMA, & FHLMC then package the mortgage loans into pools, securitize them and offers them for sale in the securities market. In doing so, GNMA, FNMA, & FHLMC convert mortgages to dollars, enabling them to purchase additional individual mortgages for pooling. This conduit is used to reallocate funds, from the securities markets into the real estate market.
MUTUAL FUNDS - Investment company that pools funds from investors to buy stocks, bonds, government securities, money market instruments and other assets. Public investments, with the exception of pension funds, usually are restricted to mutual funds known as money market funds.
NATIONAL ASSOCIATION OF SECURITIES DEALERS - A not-for-profit organization of dealers whose aim is protecting over the counter customers through financial solvency and integrity.
NEGOTIABLE CERTIFICATE OF DEPOSIT - Time deposits which may be purchased and sold in the financial markets.
NET ASSET VALUE - Net redemption price (bid price) of an open-end investment company.
NO-LOAD MUTUAL FUNDS - Mutual funds offered directly to the public at net asset value with no sales charge.
NOTE - A written promise to pay a specified amount to a certain entity on demand or on a specified date.
OPEN MARKET OPERATIONS - Purchases and sales of government and certain other securities in the open market by the New York Federal Reserve Bank as directed by the FOMC in order to influence the volume of money and credit in the economy. Purchases inject reserves into the bank system and stimulate growth of money and credit; sales have the opposite effect. Open market operations are the Federal Reserve’s most important and most flexible monetary policy tool.
PAR VALUE - The same as face value. Par value is the principal amount of a bond. 69
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Glossary
PERFECTED INTEREST - The legal right to interest and principal of securities held as collateral by a third-party safekeeping arrangement.
PORTFOLIO - Collection of securities held by an investor.
PREFERRED STOCK - Shareholders are entitled to a specified dividend and priority over assets in liquidation, but not voting rights.
PREMIUM - Bond purchase price which is greater than that of its face value.
PRIMARY DEALER - A group of government securities dealers that submit daily reports of market activity and positions and monthly financial statements to the Federal Reserve Bank of New York and are subject to its informal oversight. Primary dealers include Securities and Exchange commission (SEC), registered securities broker-dealers, banks, and a few unregulated firms.
PRIME BANKER’S ACCEPTANCE - A banker’s acceptance issued by a bank that has received the highest short-term ratings from at least two’ nationally recognized ratings organizations. It has a relatively short maturity (usually six months or less), and is eligible for discounting within the Federal Reserve system. Eligibility depends on a number of criteria including the purpose; timing and amount of the underlying transaction (See also “banker’s acceptance”).
PRIME COMMERCIAL PAPER - Commercial paper that has received the highest short-term ratings from at least two national ratings organizations (See also “commercial paper”).
PRIME RATE - Interest rate charged by a bank on loans to its best customers.
PRINCIPAL - (1) The face amount on a bond. (2) The basic amount invested.
PRINCIPAL-ONLY SECURITY (P0) - Security derived from principal portion of a pool of mortgage securities (separated from the interest payments).
PROSPECTUS - A legal document that must be provided to any prospective purchaser of a new securities offering registered with the SEC that typically includes information on the issuer, the issuer’s business, the proposed use of proceeds, the experience of the issuer’s management, and certain certified financial statements (also known as an “official statement”).
PRUDENT INVESTOR RULE - An investment standard. In some states, the law requires that a fiduciary, such as a trustee, may invest money only in a list of securities selected by the state— the so-called legal list. In other states the trustee may invest in a security if it is one which would be bought by a prudent person of discretion and intelligence who is seeking a reasonable income and preservation of capital.
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Glossary
RATE OF RETURN - The yield obtainable on a security based on its purchase price or its current market price. This may be the amortized yield to maturity on a bond or the current income return.
REINVESTMENT RISK - The risk that maturing investments cannot be replaced by investments earning the same interest rate.
REPURCHASE AGREEMENT (RP or REPO) - A holder of securities sells these securities to an investor with an agreement to repurchase them at a fixed price on a fixed date. The security “buyer” in effect lends the “seller” money for the period of the agreement, and the terms of the agreement are structured to compensate him for this. Dealers use RP extensively to finance their positions. Exception: When the Fed is said to be doing RP, it is lending money that is increasing bank reserves.
SAFEKEEPING - A service to customers rendered by banks for a fee whereby securities and valuables of all types and descriptions are held in the bank’s vault for protection.
SECONDARY MARKET - A market made for the purchase and sale of outstanding issues following the initial distribution.
SECURITIES & EXCHANGE COMMISSION (SEC) - Agency created by Congress to protect investors in securities transactions by administering securities legislation.
SECURITY INVESTOR PROTECTION CORPORATION (SIPC) - A non-profit organization of broker/dealers responsible for orderly liquidation of failed firms. Customers are protected to $500,000 per account.
SHORT TERM - Securities held six months or less. Bonds with maturities of one year or less.
SMALL BUSINESS ADMINISTRATION LOANS (SBA) - Loans made by banks to small business, which are then sold to the SBA who offers them for sale in the financial markets. Loans are purchased by the SBA to facilitate lending for small business enterprises.
STRIPS – Separate trading of registered interest and principal securities STRUCTURED NOTE - Complex customized security (also known as structured derivative) on which the returns are pegged to underlying assets or financial indices.
SUPRANATIONALS – International development institutions that provide financing, advisory services, and/or other financial services to their member countries to achieve overall goal of improving living standards through sustainable economic growth. 71
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Glossary
TAX AND REVENUE ANTICIPATION NOTES (TRANs) - Notes issued in anticipation of receiving tax proceeds or other revenues at a future date.
TOTAL RISK-BASED CAPITAL RATIO, TIER 1 RISK-BASED CAPITAL RATIO & TIER 1 LEVERAGE RATIO - In response to the FDIC Improvement Act of 1991 (FDICIA), the FDIC and the Federal Reserve Board both proposed a five-tier scheme of capital requirements and corresponding supervisory actions to implement the prompt corrective actions provisions of the FDICIA. These ratios serve as benchmarks for the five capital categories: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized.
Well capitalized institution would be defined as one that has a total risk-based capital ratio of ten percent, a Tier 1 risk-based capital ratio of six percent and a leverage ratio of five percent. A well-capitalized institution cannot be subject to any written capital order or directive.
An adequately capitalized institution would be one with a total risk-based capital ratio of eight percent, a Tier 1 risk-based capital ratio of four percent, or a Tier 1 leverage ratio of four percent.
An undercapitalized institution would be one that does not meet the capital levels needed to be adequately capitalized. A significantly undercapitalized institution, however, would be one that has a total risk-based capital ratio of under six percent, a Tier 1 risk-based capital of under three percent, or a Tier 1 leverage ratio of under three percent.
Finally, the agencies proposed to classify any institution as critically undercapitalized if it has a Tier 1 leverage ratio of two percent or less.
TREASURY BILLS - A short-term U.S. government security, also known as a T-bill, issued in minimum denominations of $10,000 with maturities of 13 weeks, 26 weeks and 52 weeks. T-bills bear no specific interest rate. They are sold at a discount to face value; their yield, therefore, varies with the difference between the purchase price and the value at maturity.
TREASURY BOND - Long-term, coupon-bearing U.S. government security, usually issued in denominations of $1,000 or more and having maturities of 10 or more years. Interest is paid every six months at a rate of one-half the annual coupon; principal is paid at maturity.
TREASURY NOTES - Medium-term, coupon-bearing U.S. government security, usually issued in denominations of $1,000 or more and having maturities of one to 10 years. Interest is paid every six months at a rate of one-half the annual coupon; principal is paid at maturity. 72
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Glossary
TRUSTEE OR TRUST COMPANY OR TRUST DEPARTMENT OF A BANK – A financial institution with trust powers which acts in a fiduciary capacity for the benefit of the bondholders in enforcing the terms of the bond contract.
UNDERWRITER - A dealer which purchases a new issue of municipal securities for resale.
UNIFORM NET CAPITAL RULE - SEC requirement that member firms as well as nonmember broker-dealers in securities maintain a maximum ratio of indebtedness to liquid capital of 15 to 1; also called net capital rule and net capital ratio. Indebtedness covers all money owed to a firm, including margin loans and commitments to purchase securities, one reason new public issues are spread among members of underwriting syndicates. Liquid capital includes cash and assets easily converted into cash.
U.S. GOVERNMENT AGENCY OBLIGATIONS (AGENCIES) - Securities issued by federal agencies other than the U.S. Treasury including: the Government National Mortgage Association (GNMA or Ginnie Mae), Small Business Administration (SBA), General Services Administration (GSA) and Federal Housing Administration (FHA). Some investors include debt instruments issued by government-sponsored corporations and related instrumentalities in the term “agencies.” However, technical differences make this usage incorrect. In most cases, the U.S. government explicitly guarantees principal and interest of agency debt but not debt of instrumentalities and government sponsored corporations.
U.S. GOVERNMENT INSTRUMENTALITY OBLIGATIONS (INSTRUMENTALITIES) - Securities issued by government-sponsored corporations including: the Student Loan Marketing Association (Sallie Mae), World Bank, Federal National Mortgage Association (Fannie Mae), Federal Farm Credit Banks (FFCB), Federal Home Loan Mortgage Association (Freddie Mae) and Federal Home Loan Banks (FHLB). Principal and interest are guaranteed only by the corporations, not the U.S. government.
WEIGHTED AVERAGE MATURITY (WAM) - The average maturity of all the securities that comprise a portfolio that is typically expressed in days or years.
YIELD - The rate of annual income returned on an investment, expressed as a percentage. (a) Income Yield is obtained by dividing the current dollar income by the current market price for the security. (b) Net Yield or Yield to Maturity is the current income yield minus any premium above par or plus any discount from par in purchase price, with the adjustment spread over the period from the date of purchase to the date of maturity of the bond.
YIELD CURVE - A graphic representation that shows the relationship at a given point in time between yields and maturity for bonds that are identical in every way except maturity. 73
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Glossary
ZERO-COUPON SECURITY (ZEROS) - A security on which all interest is paid in a lump sum at maturity, thus eliminating the reinvestment risk of interest paid out over the life of the security.
Prices are extremely interest rate sensitive and volatility increases with maturity (See also “zero- coupon treasury bonds”).
ZERO-COUPON TREASURY BOND - Security formed by stripping coupons from a treasury bond so that an investor can buy a single coupon or the principal payment at present value. Market risk is high, particularly for longer maturities. Variations include STRIPS (Separate Trading: of Registered Interest and Principal), CATS (Certificate of Accrual on Treasury Securities), TIGRS (Treasury Income Growth Receipts) and others.
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ATTACHMENT 3
CITY OF ROCKLIN
STATEMENT OF INVESTMENT POLICY
INTRODUCTION
This statement is intended to outline the policies for the prudent investment of the City’s Funds and to provide guidelines for suitable investments.
The ultimate goal is to enhance the economic status of the City while safeguarding its assets.
The City’s Cash Management System is designed to accurately monitor and forecast expenditures and revenues, thus e nabling the City to invest funds to the fullest extent possible. The City’s investment portfolio shall be structured with the objective of attaining a market rate of return throughout budgetary and economic cycles, provided that all investments meet the criteria established for safety and liquidity.
The City’s investment policies and practices are based upon Federal, State, and Local laws and prudent money management. The primary goals of these policies are:
1. To assure compliance with all Federal, State an d Local laws governing the investment of monies.
2. To protect the principal monies.
3. To ensure the investment portfolio remains sufficiently liquid to enable the City of Rocklin to meet all operating requirements which might be reasonably anticipated.
4. To a ttain a market rate of return on investment within the parameters of this Statement of Investment Policy and the Investment Portfolio Guidelines.
I. SCOPE
It is intended that this policy cover all funds and investment activities under the direct authority of the City in accordance with California Government Code Section 53600 et seq., the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) 75
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and local laws. Funds included are General Fund, Special Revenue Funds, Debt Service Funds, Capital Project Funds, Permanent Funds and Trust Funds.
This policy will not cover bond proceeds obtained from bond issues which are not direct obligations of the City, and which are not under the direct authority of the City. The bond proceeds will be invested in accordance with the Bond Indenture Agreement an d applicable State and Federal regulations.
II. OBJECTIVES
1. Safety of Principal
Safety of principal is the foremost objective of the City of Rocklin. Investments will be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. To attain this objective, the Agency will diversify its investments by investing funds among a variety of securities with independent returns. The City shall seek to preserve principal by mitigating the two types of risk: credit risk and market risk.
2. Liquidity
Liquidity is the second most important objective of the City of Rocklin. This is accomplished by structuring the portfolio so that securities mature concurrent with cash needs to meet anticipated demands. It is important that an investment contain the feature of being easily sold at any time with a minimal risk of loss of some portion of principal or interest. The investment portfolio will remain sufficiently liquid to meet all operating requirements that may be reasonably anticipated.
3. Return on Investment
The City’s Fund shall seek to attain a market -average rate of return throughout economic cycles. The investment portfolio will be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the investment risk constraints for safety and liquidity needs.
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III. 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 con ditions 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.”
City employees and other authorized persons responsible for managing City funds, acting in accordance with written procedures and the Investment Policy and exercising due diligence, shall not be held personally responsible for a specific security’s credit risk or market price changes, provided that deviations from expectations are reported in a timely manner and that appropriate action is taken to control adverse developments.
IV. DELEGATION OF AUTHORITY
Authority to manage the City’s investment program is derived from California Government Code, Sections 41006 and 53600 et seq.
The City Council is responsible for the management of the City’s funds, including the administration of this investment policy. Management responsibility for the cash management of the City’s funds may be delegated to the City Treasurer.
The City Treasurer 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 pers ons responsible for investment transactions. No person may engage in an investment 77
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transaction except as provided under the terms of this policy and the procedures established by the City Treasurer.
The City may engage the services of one or more external investment advisers, who are registered under the Investment Advisers Act of 1940, to assist in the management of the City’s investment portfolio in a manner consistent with the City’s objectives. External investment advisers may be granted discretion to purchase and sell investment securities in accordance with this investment policy.
The City's overall investment program shall be designed and managed with a degree of professionalism that is worthy of the public trust. The City recognizes that in a diversified portfolio, occasional measured losses may be inevitable and must be considered within the context of the overall portfolio’s return and the cash flow requirements of the City.
V. 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. City employees and the City’s Investment Advisory Committee involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the Investment Policy of which could impair their ability to make impartial investment recommendations and/or decisions. The City’s Investment Advisory Committee and City employees involved in the investment process shall disclose any material financial interests in financial institutions with which the City may conduct business, and they shall further disclose any reportable personal financial/investmen t positions that could be related to the performance of the City’s portfolio. The Investment Advisory Committee and City employees involved in the investment process shall subordinate their personal investment transactions to those of the City, particularly with regard to the timing of purchases and sales.
All participants in the investment process are required to comply with terms of the Political Reform Act, Fair Political Practices Commission Regulations promulgated thereunder (2 C.C.R. §§ 18110 throug h 18998), the City’s Conflict of Interest Policy, including, without limitation, filing of Form 700, notification and recusal obligations, and Government Code section 1090 prohibitions.
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VI. INVESTMENTS
1. AUTHORIZED INVESTMENTS
The City is governed by the California Government Code, Sections 53600 et seq. 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 requirements listed in this section apply at the time the security is purchased.
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.
Within the context of these limitations, the following investments are authorized, as further limited herein:
A. United States Treasury Bills, Notes, Bonds, or certificates of indebtedness, or those for which the faith and credit of the United States are pledged for payment of principal and interest. There is no limitation as to the percentage of the Fund that can be inves ted in this category as they are both safe and liquid.
• The maximum maturity is five (5) years.
B. Municipal Securities including obligations of the City of Rocklin, the State of California and any local agency within the State of California, provided that:
• The securities are rated in a rating category of “A” or its equivalent or better by at least one nationally recognized statistical rating organization (“NRSRO”).
• No more than 5% of the portfolio may be invested in any single issuer. • No more than 30% of the portfolio may be in Municipal Securities. • The maximum maturity does not exceed five (5) years.
C. Municipal Securities (Registered Treasury Notes or Bonds) of any of the other 49 states in addition to California, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by a state or by a department, board, agency, or authority of any of the other 49 states, in addition to California.
• The securities are rated in a rating category of “A” or its equiva lent or better by at least one nationally recognized statistical rating organization (“NRSRO”).
• No more than 5% of the portfolio may be invested in any single issuer. • No more than 30% of the portfolio may be in Municipal Securities. 79
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• The maximum maturity does not exceed five (5) years.
D. Federal Agencies or United States Government -Sponsored Enterprise obligations, participations, or other instruments, including those issued by or fully guaranteed as to principal and interest by federal agencies or United States government-sponsored enterprises. There are no limits on the dollar amount or percentage that the City may invest in Federal Agency or Government-Sponsored Enterprises (GSEs), 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%.
E. Banker’s Acceptances, provided that:
• They are issued by institutions which have short -term debt obligations rated “A-1” or its equivalent or better by at least one NRSRO; or long-term debt obligations which are rated in a rating category of “A” or its equivalent or better by at least one NRSRO.
• No more than 40% of the portfolio may be invested in Ba nker’s Acceptances.
• No more than 5% of the portfolio may be invested in any single issuer. • The maximum maturity does not exceed 180 days.
F. Commercial paper , provided that the securities are issued by an entity that meets all of the following conditions in either paragraph (a) or (b) and other requirements specified below:
a. Securities issued by corporations:
(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:
(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.
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(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.
• No more than 25% of the Agency’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. Negotiable Certificates of Deposit (NCDs) , issued by a nationally or state - chartered bank, a savings association or a federal association, a st ate or federal credit union, or by a federally licensed or state -licensed branch of a foreign bank, provided that:
• 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 NRSRO; or long -term obligations rated in a rating category of “A” or its equivalent or better by at least one NRSRO. • No more than 30% of t he total portfolio may be invested in NCDs (combined with CDARS).
• No more than 5% of the portfolio may be invested in any single issuer. • The maximum maturity does not exceed five (5) years.
H. Repurchase Agreements collateralized with securities authorized u nder California Government Code, maintained at a level of at least 102% of the market value of the Repurchase Agreement. There are no limits on the dollar amount or percentage that the City may invest, provided that:
• Securities used as collateral for Repur chase 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). • The maximum maturity does not exceed one (1) year.
I. Supranationals, provided that:
• Issues are US dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, International Finance Corporation, or Inter-American Development Bank.
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• The securities are rated in a rating category of “AA” or its equivalent or better by a NRSRO.
• No more than 30% of the total portfolio may be invested in these securities.
• No more than 10% of the portfolio may be invested in any single issuer. • The maximum maturity does not exceed five (5) years.
J. State of California Local Agency Investment Fund (LAIF), provided that:
• The City may invest up to the maximum amount permitted by LAIF. • LAIF’s investments in instruments prohibited by or not specified in the City’s policy do not exclude the investment in LAIF itself from the City’s list of allowable investments, provided LAIF’s reports allow the City Treasurer to adequately judge the risk inherent in LAIF’s portfolio.
K. Corporate Medium-term notes (MTNs), provided that:
• The issuer is a corporation organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States.
• The securities are rated in a rating category of “A” or its equivalent or better by at least one NRSRO.
• No more than 30% of the total portfolio may be invested in MTNs. • No more than 5% of the portfolio may be invested in any single issuer. • The maximum maturity does not exceed five (5) years.
L. Federally Insured Time Deposits (Non -Negotiable Certificates of Deposit) in state or federally chartered banks, savings and loans, or credit unions, provided that:
• The amount per institution is limited to the maximum covered under federal insurance.
• No more than 20% of the portfolio will be invested in a combination of federally insured and collateralized time deposits.
• The maximum maturity does not exceed five (5) years.
M. Mutual Funds and Money Market Mutual Funds that are registered with the Securities and Exchange Commission under the Investment Company Act of 1940, provided that:
a. 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 investme nt adviser registered or exempt from registration with the Securities and Exchange Commission with not 82
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less than five years’ experience investing in the securities and obligations authorized by California Government Code, Section 53601 and with assets unde r management in excess of $500 million.
• No more than 10% of the total portfolio may be invested in shares of any one mutual fund.
b. MONEY MARKET MUTUAL FUNDS registered with the Securities and Exchange Commission under the Investment Company Act of 1940 an d issued by diversified management companies and meet either of the following criteria:
(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.
c. No more than 20% of the total portfolio may be invested in these securities.
N. Collateralized Bank Deposits. The 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.
O. Asset-Backed, Mortgage -Backed, Mortgage Pass -Through Securities and Collateralized Mortgage Obligations from issuers not defined in sections A. or D. of the Authorized Investments Section of this Policy, provided that:
• The securities are rated in a rating catego ry of “AA” or its equivalent or better by a NRSRO.
• No more than 20% of the total portfolio may be invested in these securities.
• No more than 5% of the portfolio may be invested in any single Asset - Backed or Commercial Mortgage security issuer.
• The maximum legal final maturity does not exceed five (5) years.
P. Placer County Treasurer’s Investment Pool. The City may invest in the Placer County Treasurer’s Investment Pool established by the Placer County Treasurer for the benefit of local agencies. No more than 25% of the market 83
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value of the Fund may be invested in the Placer County Treasurer’s Investment Pool.
2. PROHIBITED INVESTMENT VEHICLES AND PRACTICES
A. State law notwithstanding, any investments not specifically described herein are prohibited, including, but not limited to futures and options.
B. In accordance with Government Code, Section 53601.6, investment in inverse floaters, range notes, or mortgage derived interest-only strips is prohibited.
C. 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.
D. Trading securities for the sole purpose of speculating on the future direction of interest rates is prohibited.
E. Purchasing or selling securities on margin is prohibited.
F. The use of reverse repurchase agreements, securitie s lending or any other form of borrowing or leverage is prohibited.
G. The purchase of foreign currency denominated securities is prohibited.
G.H. The purchase of a security with a forward s ettlement date exceeding 45 days from the time of the investment 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.
VII. AUTHORIZED FINANCIAL INSTITUTIONS, DEPOSITORIES, AND BROKER/DEALERS
To the extent practicable, the City Treasurer shall endeavor to complete investment transactions using a competitive bid process whenever possible. The City Treasurer will determine which financial institutions are authorized to provide investment services to the City. It shall be the City’s policy to purchase securities only from authorized institutions and firms.
The City Treasurer shall maintain procedures for establishing a list of authorized broker/dealers and financial institutions which are approved for investment purposes that are selected through a process of due diligence as determined by the City. Due inquiry shall determine whether such a uthorized broker/dealers, and the individuals covering the City are reputable and trustworthy, knowledgeable and experienced in Public Agency investing and able to meet all of their financial obligations. These 84
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institutions may include "primary" dealers or regional dealers that qualify under Securities and Exchange Commission (SEC) Rule 15c3-1 (uniform net capital rule).
In accordance with Section 53601.5, institutions eligible to transact investment business with the City include:
• Institutions licensed by the state as a broker -dealer. Institutions licensed by the state and proof of FINRA certification as a broker -dealer, as defined in Section 25004 of the Corporations Code.
• Institutions that are members of a federally regulated securities exchange. • Primary government dealers as designated by the Federal Reserve Bank and non- primary government dealers.
• Nationally or state-chartered banks.
• The Federal Reserve Bank.
• Direct issuers of securities eligible for purchase.
Selection of financial institutions and broker/dealers authorized to engage in transactions will be at the sole discretion of the City, except where the City utilizes an external investment adviser in which case the Agency may rely on the adviser for selection.
All financial institutions which desire to become qualified bidders for investment transactions (and which are not dealing only with the investmen t adviser) must supply the City Treasurer with audited financials and a statement certifying that the institution has reviewed the California Government Code, Section 53600 et seq . and the City’s investment policy. The City Treasurer will conduct an annual review of the financial condition and registrations of such qualified bidders.
Public deposits will be made only in qualified public depositories as established by State law. Deposits will be insured by the Federal Deposit Insurance Corporation, or, to the extent the amount exceeds the insured maximum, will be collateralized in accordance with State law.
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.
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VIII. 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 Departm ent 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 collaterali ze 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.
IX. DELIVERY, SAFEKEEPING AND CUSTODY OF SECURITIES
DELIVERY-VERSUS-PAYMENT (DVP). All investment transactions shall be conducted on a delivery-versus-payment basis.
SAFEKEEPING AND CUSTODY. 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 by the City from the custodian listing all securities held in safekeeping with current market data and other information.
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The only exceptions to the foregoing shall be depository accounts and securities purchases made with: (i) local g overnment investment pools; (ii) time certificates of deposit, and, (iii) mutual funds and money market mutual funds, since these securities are not deliverable.
X. 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:
1. The diversification requirements included in the “Authorized Investments” section of this policy are designed to mitigate credit risk in the portfolio.
2. 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.
3. 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 t o market conditions or the City’s risk preferences.
4. If a security owned by the City is downgraded to a level below the requirements of this policy, making the security ineligible for additional purchases, the following steps will be taken:
• Any actions take n related to the downgrade by the investment manager will be communicated to the City Treasurer in a timely manner.
• If a decision is made to retain the security, the credit situation will be monitored and reported to the City Council.
MITIGATING MARKET RISK IN THE PORTFOLIO
Market risk is the risk that the portfolio value will fluctuate due to changes in the general level of interest rates. The City recognizes that, over time, longer-term portfolios have the potential to achieve higher returns. On the other hand, longer-term portfolios have higher volatility of return. The City will mitigate market risk by providing adequate liquidity for short-term cash needs, and by making longer -term investments only with funds that are not needed for current cash flow purposes.
The City further recognizes that certain types of securities, including variable rate securities, securities with principal paydowns prior to maturity, and securities with embedded options, will affect the market risk profile of the portfolio di fferently 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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• The City will maintain a minimum of six months of budgeted operating expenditures in short term investments to provide sufficient liquidity for expected disbursements.
• The maximum stated final maturity of individual securities in the portfolio will be five (5) years, except as otherwise stated in this policy.
The duration of the portfolio will gener ally be approximately equal to the duration (typically, plus or minus 20%) of a Market Benchmark, an index selected by the City based on the City’s investment objectives, constraints and risk tolerances.
XI. REPORTING
Monthly Reporting
The City Treasurer shall provide to the City Council a monthly investment report detailing transactions in the City’s portfolio as required per California Government Code section 53607.
Quarterly Reporting
The City Treasurer shall render a quarterly report to the City Council showing the type of investment, institution, date of maturity, amount of deposit, current market value for all securities with a maturity of more than twelve months, rate of interest, type and amount of funds under the management of contract investment managers, the City’s compliance with the statement of investment policy, the ability of the City of meet cash flow needs for the next six months, and such data as may be required by the City Council as required per California Government Code section 53646.
Annual Reports
An annual report will be presented to the City Council . This report will include comparisons of the City’s return to the market benchmark return, suggest policies and improvements that might enhance the investment program, and may include an investment plan for the coming year.
XII. INVESTMENT CONTROLS
The City Treasurer is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the entity are protected from loss, theft or misuse. The internal control structure shall be designed to provide reasonable assurance that these objectives are met. The concept of reasonable assurance recognizes 88
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that (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the valuation of costs and benefits requires estimates and judgments by management.
XIII. POLICY ADOPTION
The City’s Investment Policy shall be adopted by resolution of the City Council. The Policy shall be reviewed at least annually to ensure its consistency with the overall objectives of preservation of PRINCIPAL, LIQUIDITY, AND RETURN, and its re levance to current law, financial and economic trends, and to meet the needs of the City of Rocklin and any modifications made thereto must be approved by the City Council. The City’s Investment Policy shall be submitted annually to the City Council. 89
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Glossary
GLOSSARY
ACCRUED INTEREST - Interest on a bond that has accumulated since the last interest payment.
The buyer pays the seller the bond price plus accrued interest.
AGENCIES - Federal agency securities.
BANKER’S ACCEPTANCE - A time draft drawn on a bank and accepted by that bank as ultimate liability for payment. Used most often to finance import and export transactions. Banker’s acceptances are also collateralized by the underlying merchandise being contracted in the import-export transaction. It is a money market instrument when guaranteed by a bank.
BASIS POINT - Smallest measure used in quoting yields on bonds and notes; one o ne-hundredth of a percentage point (.01 percent or .0001).
BOND - A debt instrument in which the investor lends money to the bond issuer, who agrees to pay a stated rate of interest over a specified period of time. Very simply a bond is nothing more than a promissory note which is traded in the financial markets. The investor’s position is that of lender.
BOOK VALUE - The value at which the investor holds on their books as their invested amount in a security. This may be more or less’ than the current face value of the security depending if the security was purchased at a price more or less than the face value.
BROKER - A broker brings buyers and sellers together for a commission paid by the initiator of the transaction or by both sides; he does not hold a position. In the money market, brokers are active in markets in which banks buy and sell money and in interdealer markets.
CAPITALIZATION - A firm’s capital structure, composed of total securities issued by the corporation, including bonds, debentures, preferred and common stock, and all surpluses (retained earnings).
CERTIFICATE OF DEPOSIT (CD) (TIME DEPOSIT) - An interest- bearing time deposit issued by banks with a specific maturity evidenced by a certificate. Large denomination CD’s are typically negotiable.
CHURNING – excessive trading in a customer ’s account designed solely to increase broker’s commissions.
COLLATERAL - Securities, evidence of deposit or other property which a borrower pledges to secure repayment of a loan. Also refers to securit ies pledged by a bank to secure deposits of public monies.
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COLLATERALIZED OBLIGATIONS - Notes secured by collateral. The collateral is usually comprised of U.S. Government securities which are held by a third -party-trustee who also insures that adequate collateral is posted at all times.
COLLATERALIZED MORTGAGE OBLIGATION (CMO) - Derivative security created by dividing the cash flows of a pool of mortgages into obligations with different maturities.
COMMERCIAL PAPER - Unsecured, bearer obligations (maturity usually 270 days or less) issued by corporations, either at a discount and redeemed at par, or at par and pay interest.
COMMON STOCK - Units (shares) of ownership in a public corporation. Shareholders have control over corporate affairs through voting rights, and dividends are paid to common stockholders after preferred stock shareholders.
CONFIRMATION - A piece of paper detailing the conditions and terms of a transaction. Delivered to the customer on or before settlement. It serves as a bill for purchases and an advisory notice for sales.
CORPORATE BONDS - A debt instrument issued by a corporation which normally pays interest on specific dates and repays the principal at maturity.
COUPON - (a) The annual rate of interest that a bond’s issuer promises to pay the bondholder on the bond’s face value. (b) A certificate attached to a bond evidencing interest due on a payment date.
CREDIT RISK - The risk that an obligation will not be met in a timely fashion with the result being a temporary or even permanent loss to the lender.
DEALER - A dealer, as opposed to a broker, acts as a principal in all transactions, buying and selling for his own account.
DEBENTURE - A bond secured only by the general credit of the issuer.
DEBT TO EQUITY RATIO - Solvency ratio of total long-term debt to total stockholder’s equity.
DELIVERY VERSUS PAYMENT - There are two methods of delivery of securities: delivery versus payment and delivery versus receipt (also called free). Delivery versus payment is delivery of securities with an exchange of money for the securities. Delivery vers us receipt is delivery of securities with an exchange of a signed receipt for the securities.
DERIVATIVE - A broad term referring to any security which derives its value from another underlying asset or index.
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DISCOUNT - The difference between the cost pr ice of a security and its value at maturity when quoted at lower than face value. A security selling below original offering price shortly after sale also is considered to be at a discount.
DISCOUNT RATE - Interest rate that the Federal Reserve charges for loans to member banks.
DISCOUNT SECURITIES - Non-interest- bearing money market instruments that are issued at a discount and redeemed at a maturity for full face value; i.e., U.S. Treasury bills.
DIVERSIFICATION - Spreading a portfolio across a range of security types, industries or geographic areas to limit risk.
FACE VALUE - The same as par value. Face value is the principal amount of a bond.
FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC) - A federal agency that insures bank deposits currently $250,000 per depositor.
FEDERAL FARM CREDIT BANK (FFCB) - Government instrumentality which issues notes and bonds to provide funds for its member banks for the purchase of farm land, equipment and commodities.
FEDERAL HOME LOAN BANKS (FHLB) - Government instrumentality consisting of twelve regional banks owned by savings and homestead associations which issue bonds and notes to finance home building and mortgage loans of their member associates.
FEDERAL HOME LOAN MORTGAGE CORPOR ATION (FHLMC OR FREDDIE MAC) - Debt issued by FHLMC, a government instrumentality, to facilitate real estate lending. FHLMC issues short-term debt backed by its own full faith and credit, and it issued long -term debt backed by mortgages with repayment guaranteed by FHLMC.
FEDERAL NATI ONAL MORTGAGE ASSOCIATION (FNMA OR FANNIE MAE) – A government - sponsored-publicly-owned corporation whose stock trades on the New York Stock Exchange.
FNMA issues short-term debt backed by its own full faith and credit. FNMA purchases FHA, VA, and FHDA mortgages through the sale of its corporate debenture notes. These notes are backed by the mortgages with repayment guaranteed by FNMA.
FLOATER - A floating rate security in which the interest note varies with an index such as U.S.
Treasury Bills or LIBOR (London Interbank Offered Rate).
GENERAL OBLIGATION BOND (G.O.) - A municipal bond secured by the full faith and credit of the municipality.
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GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA OR GINNIE MAE) - Securities guaranteed by GNMA and issued by mortgage bankers, commercial banks, savings and loan associations and other institutions. Security holder is protected by full faith and credit of the U.S.
Government. Ginnie Mae securities are backed by FHA, VA or FMHM mortgages. The term pass- through is often used to describe Ginnie Maes.
GUARANTEED INVESTMENT CONTRACTS (GICs) - An agreement acknowledging receipt of funds for deposit, specifying terms for withdrawal, and guaranteeing a rate of interest t o be paid.
Uninsured, non-guaranteed obligations of insurance companies, permitted for public investment in a few states. Risk varies according to the credit risk of the issuing company.
HEDGE/HEDGING - Technique designed to counteract the risk of loss fr om price changes in the market.
HOLDING COMPANIES - A corporation with controlling interest in one or more corporations.
INSTRUMENTALITIES - See U.S. government instrumentality obligations.
INTEREST - The sum charged for borrowing money.
INTEREST-ONLY SECURITY (I0) - Security derived from the interest rate portion of a pool of mortgage securities (separated from the principal portion).
INTEREST RATE RISK - The uncertainty of investment return due to changes in the market rates of interest. For investments that generate a fixed rate of return, the value of that investment is inversely related to the movement of market rates of interest.
INVERSE FLOATER - Structured note or derivative designed to rise in yield as interest rates fall.
Also called reverse floater. Extremely volatile security not recommended for public funds.
INVESTMENT COMPANY ACT OF 1940 - Regulates investment companies.
LEVERAGE - Money borrowed to reinvest in order to increas e the return on invested capital. A municipality may leverage funds through the issuance of taxable notes, reverse repurchase agreements and purchasing securities with embedded leverage. Leverage may be embedded inside a security or it may be applied to an investment portfolio as a whole.
LIQUIDITY - A liquid asset is one that can be converted easily and rapidly into cash without a substantial loss of value. In the money market, a security is said to be liquid if the spread between bid and asked prices is narrow and reasonable size can be done at those quotes.
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LIQUIDITY RISK - The risk that a financial institution or other organization will not have sufficient cash on hand to meet its obligations; or in the case of a specific investment instrument, the r isk that it will not be easily convertible to cash.
LOCAL GOVERNMENT INVESTMENT POOL (LGIP) - The aggregate of all funds from a political subdivision that are placed in the custody of the State Treasurer for investment and reinvestment.
LONG TERM - Securities held more than six months or bonds maturing in more than five years.
MARK TO MARKET - Adjustment of an account or portfolio to reflect actual market price rather than book price, purchase price or some other valuation.
MARKET MAKER - A broker/dealer maintaining an inventory in a security.
MARKET RATE OF RETURN - Return that is based on some market index that acts as a proxy for the market, such as the “Standard & Poor’s 500” stock index, which is used to gauge the returns on individual securities or portfolios. The City uses as a benchmark the average return on two - year U.S. Treasury Notes.
MARKET RISK - The risk of a decline in the price of securities because of a general falling market.
MARKET VALUE - The price at which a security is trading and could presumably be purchased or sold.
MASTER REPURCHASE AGREEMENT - A written contract covering all future transactions between the parties to repurchase-reverse repurchase agreements that establishes each party’s rights in the transactions . A master agreement will often specify, among other things, the right of the buyer-lender to liquidate the underlying securities in the event of default by the seller-borrower.
MATURITY - The date upon which the principal or stated value of an investment become due and payable.
MEDIUM-TERM NOTES - Issuers register with the SEC allowing for notes to be issued at various times, rates and maturities from one to ten years as the issuer’s financing needs dictate.
MONEY MARKET - The market in which short -term debt instruments (bills, commercial paper, bankers’ acceptances, etc.) are issued and traded.
MONEY MARKET FUND - An open-end investment company (mutual fund) that invests in money market instruments regulated by the Securities and Exchange Commission. I t is a highly liquid investment that pays money market rates of interest.
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MONEY MARKET INSTRUMENTS - Highly liquid debt instruments usually with maturities of one year or less. Money market instruments include repurchase agreements, reverse repurchase agreements, negotiable certificates of deposit, banker’s acceptances, commercial paper, Treasury bills and other short -term direct obligations of U.S. government agencies and instrumentalities.
MORTGAGE BACKED SECURITY (MBS) - A pool of individual mortgages which is packaged and sold to investors at a specified coupon rate, maturity date, and face value. Individual mortgage loans are purchased from lenders by GNMA, FNMA, & FHLMC, thus converting the lenders loan assets to dollars, in turn making money availab le again for borrowing. GNMA, FNMA, & FHLMC then package the mortgage loans into pools, securitize them and offers them for sale in the securities market. In doing so, GNMA, FNMA, & FHLMC convert mortgages to dollars, enabling them to purchase additional i ndividual mortgages for pooling. This conduit is used to reallocate funds, from the securities markets into the real estate market.
MUTUAL FUNDS - Investment company that pools funds from investors to buy stocks, bonds, government securities, money market instruments and other assets. Public investments, with the exception of pension funds, usually are restricted to mutual funds known as money market funds.
NATIONAL ASSOCIATION OF SECURITIES DEALERS - A not-for-profit organization of dealers whose aim is protecting over the counter customers through financial solvency and integrity.
NEGOTIABLE CERTIFICATE OF DEPOSIT - Time deposits which may be purchased and sold in the financial markets.
NET ASSET VALUE - Net redemption price (bid price) of an open-end investment company.
NO-LOAD MUTUAL FUNDS - Mutual funds offered directly to the public at net asset value with no sales charge.
NOTE - A written promise to pay a specified amount to a certain entity on demand or on a specified date.
OPEN MARKET OPERATIONS - Purchases and sales of government and certain other securities in the open market by the New York Federal Reserve Bank as directed by the FOMC in order to influence the volume of money and credit in the economy. Purchases inject reserves into the bank system and stimulate growth of money and credit; sales have the opposite effect. Open market operations are the Federal Reserve’s most important and most flexible monetary policy tool.
PAR VALUE - The same as face value. Par value is the principal amount of a bond.
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PERFECTED INTEREST - The legal right to interest and principal of securities held as collateral by a third-party safekeeping arrangement.
PORTFOLIO - Collection of securities held by an investor.
PREFERRED STOCK - Shareholders are entitled to a specified dividend and priority over assets in liquidation, but not voting rights.
PREMIUM - Bond purchase price which is greater than that of its face value.
PRIMARY DEALER - A group of government securities dealers that submit daily reports of market activity and positions and monthly financial statements to the Federal Reserve Bank of New York and are subject to its informal oversight. Primary dealers include Securities and Exchange commission (SEC), registered securities broker-dealers, banks, and a few unregulated firms.
PRIME BANKER’S ACCEPTANCE - A banker’s acceptance issued by a bank that has received the highest short-term ratings from at least two’ nationally recognized ratings organizations. It has a relatively short maturity (usually six months or less), and is eligible for discounting within the Federal Reserve system. Eligibility depends on a number of criteria including the purpose; timing and amount of the underlying transaction (See also “banker’s acceptance”).
PRIME COMMERCIAL PAPER - Commercial paper that has received the highest short-term ratings from at least two national ratings organizations (See also “commercial paper”).
PRIME RATE - Interest rate charged by a bank on loans to its best customers.
PRINCIPAL - (1) The face amount on a bond. (2) The basic amount invested.
PRINCIPAL-ONLY SECURITY (P0) - Security derived from principal portion of a pool of mortgage securities (separated from the interest payments).
PROSPECTUS - A legal document that must be provide d to any prospective purchaser of a new securities offering registered with the SEC that typically includes information on the issuer, the issuer’s business, the proposed use of proceeds, the experience of the issuer’s management, and certain certified financial statements (also known as an “official statement”).
PRUDENT INVESTOR RULE - An investment standard. In some states, the law requires that a fiduciary, such as a trustee, may invest money only in a list of securities selected by the state — the so-called legal list. In other states the trustee may invest in a security if it is one which would be bought by a prudent person of discretion and intelligence who is seeking a reasonable income and preservation of capital.
RATE OF RETURN - The yield obtainable on a security based on its purchase price or its current 96
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market price. This may be the amortized yield to maturity on a bond or the current income return.
REINVESTMENT RISK - The risk that maturing investments cannot be replaced by investments earning the same interest rate.
REPURCHASE AGREEMENT (RP or REPO) - A holder of securities sells these securities to an investor with an agreement to repurchase them at a fixed price on a fixed date. The security “buyer” in effect lends the “seller” money for the period of the agreement, and the terms of the agreement are structured to compensate him for this. Dealers use RP extensively to finance their positions. Exception: When the Fed is said to be doing RP, it is lending money that is increasing bank reserves.
SAFEKEEPING - A service to customers rendered by banks for a fee whereby securities and valuables of all types and descriptions are held in the bank’s vault for protection.
SECONDARY MARKET - A market made for the purchase and sale of outstanding issues following the initial distribution.
SECURITIES & EXCHANGE COMMISSION (SEC) - Agency created by Congress to protect investors in securities transactions by administering securities legislation.
SECURITY INVESTOR PROTECTION CORPORATION (SIPC) - A non-profit organization of broker/dealers responsible for orderly liquidation of failed firms. Customers are protected to $500,000 per account.
SHORT TERM - Securities held six months or less. Bonds with maturities of one year or less.
SMALL BUSINESS ADMINISTRATION LOANS (SBA) - Loans made by banks to small business, which are then sold to the SBA who offers them for sale in the financial markets. Loans are purchased by the SBA to facilitate lending for small business enterprises.
STRIPS – Separate trading of registered interest and principal securities
STRUCTURED NOTE - Complex customized security (also known as structured derivative) on which the returns are pegged to underlying assets or financial indices.
SUPRANATIONALS – International development i nstitutions that provide financing, advisory services, and/or other financial services to their member countries to achieve overall goal of improving living standards through sustainable economic growth.
TAX AND REVENUE ANTICIPATION NOTES (TRANs) - Notes issued in anticipation of receiving tax proceeds or other revenues at a future date.
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TOTAL RISK-BASED CAPITAL RATIO, TIER 1 RISK-BASED CAPITAL RATIO & TIER 1 LEVERAGE RATIO - In response to the FDIC Improvement Act of 1991 (FDICIA), the FDIC and the Fede ral Reserve Board both proposed a five -tier scheme of capital requirements and corresponding supervisory actions to implement the prompt corrective actions provisions of the FDICIA. These ratios serve as benchmarks for the five capital categories: well cap italized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized.
Well capitalized institution would be defined as one that has a total risk -based capital ratio of ten percent, a Tier 1 risk -based capital ratio of six percent and a leverage ratio of five percent. A well -capitalized institution cannot be subject to any written capital order or directive.
An adequately capitalized institution would be one with a total risk -based capital ratio of eight percent, a Tier 1 risk-based capital ratio of four percent, or a Tier 1 leverage ratio of four percent.
An undercapitalized institution would be one that does not meet the capital levels needed to be adequately capitalized. A significantly undercapitalized institution, however, would be one that has a total risk -based capital ratio of under six percent, a Tier 1 risk-based capital of under three percent, or a Tier 1 leverage ratio of under three percent.
Finally, the agencies proposed to classify any institution as critically undercapitalized if it has a Tier 1 leverage ratio of two percent or less.
TREASURY BILLS - A short -term U.S. government security, also known as a T -bill, issued in minimum denominations of $10,000 with maturities of 13 weeks, 26 weeks and 52 weeks. T-bills bear no specific interest rate. They are sold at a discount to face value; their yield, therefore, varies with the difference between the purchase price and the value at maturity.
TREASURY BOND - Long-term, coupon -bearing U.S. government security, usually issued in denominations of $1,000 or more and having maturities of 10 or more years. Interest is paid every six months at a rate of one-half the annual coupon; principal is paid at maturity.
TREASURY NOTES - Medium-term, coupon-bearing U.S. government security, usually issued in denominations of $1,000 or more and having maturities of one to 10 years. Interest is paid every six months at a rate of one-half the annual coupon; principal is paid at maturity.
98
to Reso. No. 2023-067
Glossary
TRUSTEE OR TRUST COMPANY OR TRUST DEPARTMENT OF A BANK – A financial institution with trust powers which acts in a fiduciary capacity for the benefit of the bondholders in enforcing the terms of the bond contract.
UNDERWRITER - A dealer which purchases a new issue of municipal securities for resale.
UNIFORM NET CAPITAL RULE - SEC requirement that member firms as well as nonmember broker-dealers in securities maintain a maximum ratio of indebtedness to liquid capital of 15 to 1; also called net capital rule and net capital ratio. Indebtedness covers all money owed to a firm, including margin loans and commitments to purchase securities, one reason new public issues are spread among members of underwriting syndicates. Liquid capital includes cash and assets easily converted into cash.
U.S. GOVERNMENT AGENCY OBLIGATIONS (AGENCIES) - Securities issued by federal agencies other than the U.S. Treasury including: the Government National Mortgage Association (GNMA or Ginnie Mae), Small Business Administration (SBA), General Services Administration (GSA) and Federal Housing Administration (FHA). Some investors include debt instruments issued by government-sponsored corporations and related instrumentalities in the term “agencies.” However, technical differences make this usage incorrect. In most cases, the U.S. government explicitly guarantees principal and interest of agency debt but not debt of instrumentalities and government sponsored corporations.
U.S. GOVERNMENT INSTRUMENTALITY OBLIGATIONS (INSTRUMENTALITIES) - Securities issued by government-sponsored corporations including: the Student Loan Marketing Association (Sallie Mae), World Bank, Federal National Mortgage Association (Fannie Mae), Federal Farm Credit Banks (FFCB), Federal Home Loan Mortgage Association (Freddie Mae) and Federal Home Loan Banks (FHLB). Principal and interest are guaranteed only by the corporations, not the U.S. government.
WEIGHTED AVERAGE MATURITY (WAM) - The average maturity of all the securities that comprise a portfolio that is typically expressed in days or years.
YIELD - The rate of annual income return ed on an investment, expressed as a percentage. (a) Income Yield is obtained by dividing the current dollar income by the current market price for the security. (b) Net Yield or Yield to Maturity is the current income yield minus any premium above par or plus any discount from par in purchase price, with the adjustment spread over the period from the date of purchase to the date of maturity of the bond.
YIELD C URVE - A graphic representation that shows the relationship at a given point in time between yields and maturity for bonds that are identical in every way except maturity.
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Glossary
ZERO-COUPON SECURITY (ZEROS) - A security on which all interest is paid in a lump sum at maturity, thus eliminating the reinvestment risk of interest paid out over the life of the security.
Prices are extremely interest rate sensitive and volatility increases with maturity (See also “zero- coupon treasury bonds”).
ZERO-COUPON TREASURY BOND - Security formed by stripping coupons from a treasury bond so that an investor can buy a single coupon or the principal payment at present value. Market risk is high, particularly for longer maturities. Variations include STRIPS (Separate Trading: of Registered Interest and Principal), CATS (Certificate of Accrual on Treasury Securities), TIGRS (Treasury Income Growth Receipts) and others.
100
City Council
Staff Report
Subject:
Purchasing Goods and Services through Cooperative Purchase Agreements for Fiscal Year 2024/25
Date:
June 25, 2024
Submitted By:
Megan Bressem
Department:
Administrative Services - Finance
Recommendation:
Adopt a Resolution of the City Council of the City of Rocklin Authorizing the City Manager to Purchase Goods and Services through Cooperative Purchase Agreements for Fiscal Year 2024/25.
Background:
Throughout the year, City departments have a need for ongoing purchasing of goods and services for departmental operations. These purchases are necessary to ensure the continued delivery of programs and services citywide. Staff reviewed with cooperative purchasing programs and estimated the anticipated costs for goods and services for Fiscal Year (FY) 2024/25.
The City has arrangements and memberships with a number of cooperative purchasing programs, which allow member public agencies to aggregate individual purchasing power and achieve greater volume discounts. Public agencies competitively solicit and award agreements which are then made available to other member agencies and nonprofit organizations. By using this process, local government agencies can achieve better pricing and streamline purchases by removing repetitive, resource intensive, and costly bid procedures associated with routine purchases.
Rocklin Municipal Code sections 3.04.090 (C) and (D) specifically allow for the use of cooperative purchasing programs utilizing purchasing agreements maintained by other governmental agencies. City Council approval is required for purchase amounts more than $50,000.
Vendors with anticipated costs greater than $50,000 in FY 2024/25 are listed in Exhibit A to the Resolution. The list includes the total not-to-exceed amount for FY 2024/25 by vendor, the cooperative purchase agreements to be utilized, and a description of the goods and services to be procured. The total not-to-exceed amount for all vendors is $4,290,000.
Item Number 3I.
101
Staff recommends the City Council adopt a resolution (Attachment 1) to authorize the City Manager to purchase goods and services through cooperative purchasing programs to allow for ongoing purchasing for department operations at competitively bid prices with the listed vendors for FY 2024/25.
Fiscal Impact:
Purchasing through these cooperative agreements are made on an as-needed basis and charged to various departments and funds, provided sufficient funds are available in those respective departments/funds in the FY 2024/25 Operating Budget.
ATTACHMENTS:
1. Resolution
102
RESOLUTION NO. 2024-
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROCKLIN AUTHORIZING THE CITY
MANAGER TO PURCHASE GOODS AND SERVICES THROUGH COOPERATIVE PURCHASE AGREEMENTS FOR FISCAL YEAR 2024/25
WHEREAS, the City of Rocklin has arrangements/memberships with a number of cooperative purchasing programs that allow member agencies to aggregate individual purchasing power and achieve greater volume discounts than what would be available as a stand- alone agency; and
WHEREAS, using this process, local government agencies can achieve better pricing and streamline purchases by removing repetitive, resource intensive, and costly bid procedures associated with routine purchases; and
WHEREAS, Rocklin Municipal Code Section 3.04.090 (C) and (D) allows for the City to enter into cooperative purchasing arrangements and piggyback contracts provided those contracts have been awarded through a competitive process by other agency within the past twelve months; for purchases in an amount more than fifty thousand dollars, the determination shall be made by the City Council; and
WHEREAS, staff reviewed historical citywide expenditures for vendors of goods and services associated with cooperative purchasing programs, and identified vendors with anticipated costs greater than $50,000 in Fiscal Year (FY) 2024/25 (Exhibit A); and WHEREAS, in order to increase efficiency and streamline the purchasing process, staff is requesting Council approve and authorize the City Manager to purchase goods and supplies through cooperative purchase agreements, in an amount not to exceed $4,290,000 for FY2024/25; and
NOW, THEREFORE, the City Council of the City of Rocklin does resolve as follows:
Section 1. The above recital is true and correct.
Section 2. The City Council hereby approves and authorizes the City Manager to utilize cooperative purchase agreements to purchase goods and services through other government agency competitively bid contracts and their associated not to exceed amounts set forth in Exhibit “A,” attached hereto.
PASSED AND ADOPTED this 25th day of June, 2024, by the following vote:
AYES: Councilmembers:
NOES: Councilmembers:
ABSENT: Councilmembers:
ABSTAIN: Councilmembers:
103
Reso. No. 2024-
______________________________
Greg Janda, Mayor
ATTEST:
____________________________
Avinta Singh, City Clerk
104
Exhibit A to
Reso No. 2024-
Exhibit A
Cooperative Purchase Agreements by Vendor and Amount for FY 2024/25 Vendor: Not-to-Exceed
Amount
Cooperative Purchase
Agreement
Description
Amazon Services, LLC $150,000 OMNIA Partners #MA3457
OMNIA Partners #R-TC-17006
Office Supplies and general
department supplies
American Office Products
Distribution
(AOPD)/Walker's Office
Supplies
$150,000 OMNIA Partners #11-18 Office supplies and furniture, and general department
supplies
AT&T Corp. $160,000 CALNET NextGen – All
Categories
Telecommunication services,
including but not limited to
FirstNet broadband network
for first responders
AT&T DataComm $250,000 CMAS #3-21-08-1074
CMAS #3-21-09-1015
CMAS #3-19-70-0255AL
CMAS #3-17-70-0255AH
CMAS #3-23-12-1014
Cellular service, business
telephone lines, legacy radio
circuts, analog copper-based
services
AXON (formerly Taser
International, Inc.)
$75,000 NASPO ValuePoint #OK-MA-
145-015
Sourcewell #101223-AXN
NASPO OKMA #145-21-100
Tasers and re-fill cartridges,
drones and accessories, and
evidence.com services
Caltronics Business
Systems/Konica Minolta
Business Solutions USA,
Inc.
$55,000 CMAS #3-17-36-0037B Copier service and supplies Cellco Partnership dba
Verizon Wireless
$60,000 NASPO ValuePoint #MA152-1
CMAS #3-21-09-1011
Cellular phone service, wireless
data, voice, and accessories
CDW-G $150,000 OMNIA Partners #23-6692-02
OMNIA Partners #R210401
OMNIA Partners #R220801
OMNIA Partners #MA3458
OMNIA Partners #2018011-01
Barracuda security solutions
renewals and network switches
and IT related equipment
Curtis Blue Line $100,000 NPPGov #PS20275 Uniforms and bullet-proof vests Dell Marketing LP $75,000 NASPO ValuePoint #AR2495
NASPO ValuePoint #7-23-70-
55-01
IT Equipment, including but not
limited to various IT licenses,
desktop & monitor purchases,
etc
General Motors/Future
Chevrolet of Sacramento
$100,000 Sourcewell #101520-GNL Parts and supplies for fleet vehicles
Goodyear/The Goodyear
Tire & Rubber Company
$90,000 Sourcewell #102517-GTC
NASPO ValuePoint #19101
Tires
Herc Rentals Inc. $110,000 OMNIA Partners #2019000318
CMAS #4-24-05-1052
Construction equipment
rentals
105
Reso. No. 2024-
Honeywell International,
Inc/US Digital Designs,
Inc.
$125,000 NPPGov #PS20350 Fire station alerting system,
components (parts) and
warranty
Hunt & Sons, Inc. $425,000 SACOG #1920029 Fuel
Lenslock, Inc. $150,000 NPPGov #PS22120 Body-worn camera, in-car video, surveillance and network
services, digital evidence
management services
Life Assist, Inc. $75,000 NPPGov #PS20180 EMS medical supplies and equipment
LION (Authorized
Dealer/Distributor Allstar
Fire Equipment)
$100,000 NPPGov #PS20065 Uniforms, PPE, equipment,
turnout gear, hoses
L.N Curtis & Sons $100,000 NPPGov #PS20015
NPPGov #PS20105 SCBA
H-GAC #EE08-19
Turnout gear, PPE, and
equipment
Motorola Solutions, Inc. $500,000 NASPO ValuePoint #00318 H-GAC #EC07-20 9-1-1
Handheld and in-vehicle radios
for public safety departments
Oshkosh
Corporation/Pierce
Manufacturing
Inc./Golden State Fire
Apparatus, Inc.
$100,000 Sourewell #113021-OKC-1 Vehicle and equipment parts PlayPower, Inc. - Miracle
Recreation/Miracle
PlaySystems, Inc.
$125,000 Sourcewell #010521-LTS-3 Playground equipment, equipment repairs, and
replacement parts
Stryker Medical (formerly
Physio-Control, Inc.)
$200,000 NASPO ValuePoint #OK-SW-300
Sourcewell #048123-STY
Lifepak automated external
defibrillator (AED) devices
Tesco Controls, Inc. $80,000 GSA Advantage #GS-07F-0513X Traffic Signal Cabinets and Accessories
Tree Pro Tree Service
Inc./Ross Tree Expert
Company
$400,000 CMAS #4-09-03-0378A Arborist services
Genuine Parts Company,
dba NAPA Auto Parts
$150,000 Sourcewell #032521-GPC Parts and supplies for fleet vehicles
U.S Bancorp dba U.S
Bank Corporate Payment
Systems/Voyager Fleet
Systems
$160,000 Sourcewell #080620-USB Fleet Card Program for offsite fueling of fleet vehicles
Waxie Sanitary
Supply/WAXIE's
Enterprises, LLC
$75,000 NASPO ValuePoint #8506
CMAS #4-23-11-1017
Facilities and sanitary supplies
Total: $4,290,000
106
City Council
Staff Report
Subject:
Local Agency Investment Fund - Investment Authorization and Designation of Authorized Staff
Date:
June 25, 2024
Submitted By:
Megan Bressem, Management Analyst
Daniel Choe, Deputy Director of Administrative Services/City Treasurer Department:
Administrative Services - Finance
Recommendation:
Adopt a Resolution of the City Council of the City of Rocklin Authorizing Investment of Monies in the Local Agency Investment Fund and Designating Staff Authorized to Deposit and Withdraw Monies and Rescinding Resolution No. 2021-197.
Background:
The City of Rocklin has funds held in the Local Agency Investment Fund (LAIF), operated by the State Controller’s Office. LAIF requires that the City staff authorized to move funds into or out of LAIF be identified and approved by City Council Resolution.
On January 12, 2021, the City Council adopted Resolution No. 2012-2, reaffirming its prior finding that the deposit and withdrawal of City of Rocklin monies in the Local Agency Investment Fund in the State Treasury consistent with Government Code Section 16429.1 and updated the list of City staff authorized to deposit and withdraw monies in the LAIF.
On April
27, 2021, the City Council adopted Resolution No. 2021-54, updating the list of City staff authorized to deposit and withdrawal monies in the LAIF to reflect staffing changes in the Administrative Services Department.
On November 9, 2021, the City Council adopted
Resolution No. 2021-197, revising the list of authorized personnel for LAIF to remove the Principal Budget Analyst who served as the Interim City Treasurer through August 24, 2021, and to include the newly appointed Deputy Director of Administrative Services/City Treasurer.
Due to changes in staffing in the Administrative Services Department, it is necessary to update the list of City staff authorized to deposit and withdraw monies in LAIF.
Fiscal Impact:
There is no direct fiscal impact from the staff recommendation.
Item Number 3J.
ATTACHMENTS:
1. Resolution
107
RESOLUTION NO. 2024-
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROCKLIN
AUTHORIZING INVESTMENT OF MONIES IN THE LOCAL AGENCY INVESTMENT
FUND AND DESIGNATING STAFF AUTHORIZED TO DEPOSIT AND WITHDRAW MONIES AND RESCINDING RESOLUTION NO. 2021-197
WHEREAS, pursuant to Chapter 730 of the statutes of 1976, Section 16429.1 was added to the California Government Code to create a Local Agency Investment Fund in the State Treasury for the deposit of money of a local agency for the purposes of investment by the State Treasurer; and
WHEREAS, The City Council does hereby find that the deposit and withdrawal of City of Rocklin monies in the Local Agency Investment Fund in the State Treasury in accordance with the provisions of Section 16429.1 of the Government Code of purpose of investment as stated therein is in the best interests of the City of Rocklin.
The City Council of the City of Rocklin does resolve as follows:
Section 1. The City Council hereby rescinds Resolution No. 2021-197 Section 2. The City Council does hereby authorize the deposit and withdrawal of City of Rocklin monies in the Local Agency Investment Fund in the State Treasury in accordance with the provisions of Section 16429.1 of the Government Code for the purpose of investment as stated therein, and verification by the State Treasurer’s Office of all banking information provided in that regard.
Section 3. The City Council does hereby authorize the following Rocklin employees to order the deposit or withdrawal of monies in the Local Agency Investment Fund.
Alexandra Zimmermann Tameka Usher_______________
Name Name
City Manager Director of Administrative Services
Title Title
___________________________ ____________________________ Signature Signature
108
to Reso. No. 2024-
Daniel Choe _____________________ __
Name
Deputy Director of Administrative Services/City Treasurer Title
______________________________________________
Signature
PASSED AND ADOPTED this 25th day of June, 2024, by the following vote:
AYES: Councilmembers:
NOES: Councilmembers:
ABSENT: Councilmembers:
ABSTAIN: Councilmembers:
____________________________________
Greg Janda, Mayor
ATTEST:
____________________________
Avinta Singh, City Clerk
109
City Council
Staff Report
Subject:
Intention to Annex Vista Oaks (APNs 046-010-007-000 and 046-020- 003-000) into Community Facilities District No. 1
Date:
June 25, 2024
Submitted By:
Megan Bressem, Management Analyst
Daniel Choe, Deputy Director of Administrative Services Department:
Administrative Services - Finance
Recommendation:
Adopt a Resolution of the City Council of the City of Rocklin of Intention to Annex Territory to Rocklin Community Facilities District No. 1 (Annexation No. 85) and to Authorize the Levy of Special Taxes Therein (Vista Oaks, APNs 046-010-007-000 and 046-020-003-000).
Background:
Vista Oaks, Assessor's Parcel Numbers 046-010-007-000 and 046-020-003-000, is a planned residential development property located along the northern terminus of Monument Springs Drive and western terminus of China Garden Road. The annexation map is included as Attachment 2 for reference. The development of Vista Oaks is conditioned on, among other things, annexation into Community Facilities District (CFD) No. 1. CFD No. 1 finances the operation and maintenance of fire protection and suppression services and ambulance and paramedic services.
The landowner has submitted a petition and waiver letter for CFD No. 1, which requests the annexation to occur and waives some of the procedural requirements for processing the annexation. With the petitions and waivers, the City Council may adopt the resolution of intention (Attachment 1) at this meeting, and proceed with the public hearing and election, and order the annexation at its regular meeting on August 13, 2024.
Fiscal Impact:
There is no direct fiscal impact to the General Fund from the staff recommendation.
Annexation into CFD No. 1 would allow special taxes to be levied and collected to pay for services provided to the annexation territory.
Item Number 3K.
ATTACHMENTS:
1. Resolution
2. Annexation Map
110
RESOLUTION NO. 2024-
RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF ROCKLIN OF INTENTION TO ANNEX
TERRITORY TO ROCKLIN COMMUNITY FACILITIES
DISTRICT NO. 1 (ANNEXATION NO. 85)
AND TO AUTHORIZE THE LEVY OF SPECIAL TAXES THEREIN
(Vista Oaks, APNs 046-010-007-000 and 046-020-003-000)
The City Council of the City of Rocklin resolves as follows:
Section 1. The City Council finds that there exists in the City of Rocklin a district known as Rocklin Community Facilities District No. 1 (the "CFD") formed and established pursuant to Chapter 2.5 of Part 1 of Division 2 of Title 5 of the California Government Code (Mello-Roos Community Facilities Act of 1982, Government Code section 53311 et seq. (the "Act")).
Section 2. The City Council further finds that the public convenience and necessity require that certain territory be added to the CFD.
Section 3. The territory included in the existing CFD is as shown on the amended maps thereof filed in Book 1 of Maps of Community Facilities Districts to which maps reference is hereby made. The territory proposed to be annexed to the CFD is as shown on the Annexation Map No. 85 to the CFD on file with the City Clerk, the boundaries of which territory are hereby preliminarily approved and to which map reference is hereby made for further particulars. The City Clerk is hereby directed to cause to be recorded in the office of the Placer County Recorder the Annexation Map No. 85 to the CFD, showing the territory to be annexed, within fifteen days of the date of adopting of this resolution. Said territory is commonly known as Vista Oaks.
Section 4. The public services authorized for the existing CFD are fire protection and suppression services and ambulance and paramedic services. The services to be provided in the territory proposed to be annexed to the CFD are fire protection and suppression services and ambulance and paramedic services as described in section 3 of Resolution No. 86-102 adopted by the Council on May 27, 1986 ("Resolution of Formation"). It is presently intended that the public services shall be shared without preference or priority by the existing territory in the CFD and the territory proposed to be annexed to the CFD.
Section 5. Except where funds are otherwise available, a special tax sufficient to pay for all such services will be annually levied and collected in the same manner as ordinary ad valorem property taxes on each building within the territory proposed to be annexed to the CFD at the following rates:
a) Single family detached - $250.75
b) Condominium - $250.75
c) Multi-family with up to four units - $376.13
d) Multi-family with five or more units - $788.07
e) Commercial - $328.36
f) Light industrial - $394.04
111
Reso. No. 2024-
Section 6. Beginning July 1, 2024 and each July 1 thereafter, the maximum annual tax rates assigned to each building category shall be increased to an amount equal to 103% of the amount in effect in the prior year.
Section 7. No alteration in the special tax rate authorized to be levied in the existing CFD shall be made as a result of the proposed annexation.
Section 8. A public hearing on the matter of the proposed annexation to Rocklin Community Facilities District No. 1, and for consideration and final determination of whether the public interest, convenience and necessity require the annexation of territory to the CFD and the levy of special taxes therein, shall be held on August 13, 2024, at 6:00 P.M. in the City of Rocklin Council Chambers, 3970 Rocklin Road, Rocklin, California.
Section 9. The City Clerk is hereby directed to give notice of the hearing in accordance with sections 53339.4, 53322 and 53322.4 of the Act by publication in the Placer Herald once at least seven (7) days prior to the hearing and by first-class mail to each registered voter and each landowner within the territory proposed to be annexed to the CFD at least 15 days before the hearing. The notice shall be substantially in the form specified in section 53339.4 of the Act.
PASSED AND ADOPTED this 25th day of June, 2024, by the following vote:
AYES: Councilmembers:
NOES: Councilmembers:
ABSENT: Councilmembers:
ABSTAIN: Councilmembers:
________________________________
Greg Janda, Mayor
ATTEST:
____________________________
Avinta Singh, City Clerk
112
S 00°21'10" E 1324.64'S 89°37'06" W L=1312.02'
S 89°34'01" W 1562.87'
S 39°00'05" EL=50.00'
S 15°53'05" W L=39.33'
N 00°22'49" W L=1778.40'
L=374.43'R=488.13'Δ=43°57'01"S 28°36'29" W L=94.37'
R=6,145'L=284.23'Δ=02°39'01"N 51°03'04" EL=104.05'
S 17°09'06" E L=52.74'S 28°07'52" W L=46.91'L=38.63' R=25.00' Δ=88°32'01"L=92.70' R=42.57' Δ=124°46'01"S 89°37'06" W L=944.56'ANNEXATION AREA046-020-00343.3 ± ACRESS 24°06'04" W L=52.37'L=99.22' R=69.42' Δ=81°53'42"L=149.55'R=141.21'Δ=60°40'50"S 07°49'13" E L=27.10' ANNEXATION AREA046-010-00747.1 ± ACRESCFD BOUNDARYCFD BOUNDARY
CFD BOUNDARYCFD BOUNDARY
CFD BOUNDARY
CFD BOUNDARY
VIOLA WAYCALVERHALLWAYMONUMENT SPRINGSDRIVEURSULA WAY
CREEKSIDE COURT
INTERSTATE 80S 50°25'59" W L=2600.17' L=2485.03'S 50°25'59" WL=115.14'N 49°58'43" EL=498.16'
VICINITY MAP
VISTA OAKSANNEXATION MAP NO. 85 OFCOMMUNITY FACLITIES DISTRICT NO. 1PORTION OF SECTION 30, T. 11N., R.7 E., MDB&MCITY OF ROCKLIN, COUNTY OF PLACER, STATE OF CALIFORNIAJUNE 2024 1" = 250'ENGINEERING & PLANNING1504 EUREKA ROAD, SUITE 110ROSEVILLE, CA 95661 916.786.0685 CITY COUNCIL'S STATEMENTI HEREBY CERTIFY THAT THE WITHIN MAP SHOWING PROPOSED BOUNDARIES OFANNEXATION NO. _______ TO COMMUNITY FACILITIES DISTRICT NO. 1 , CITY OFROCKLIN, COUNTY OF PLACER, STATE OF CALIFORNIA, WAS APPROVED BY THE CITYCOUNCIL OF THE CITY OF ROCKLIN, AT A MEETING THEREOF, HELD ON THE ______ DAYOF _______________2024, BY IT'S RESOLUTION NO. _________________.__________________________________________ _____________________AVINTA SINGH DATECITY CLERK OF THE CITY OF ROCKLINCITY CLERK'S STATEMENTFILED IN THE OFFICE OF THE CITY CLERK OF THE CITY OF ROCKLIN THIS ______ DAY OF______________2024._________________________________________ _____________________AVINTA SINGH DATECITY CLERK OF THE CITY OF ROCKLINRECORDER'S STATEMENTFILED THIS _____ DAY OF _______________, 2024, AT THE HOUR OF _______ _.M.,IN BOOK _____ OF MAPS OF ASSESSMENT AND COMMUNITY FACILITIESDISTRICTS, AT PAGE _______, IN THE OFFICE OF THE COUNTY RECORDER INTHE COUNTY OF PLACER, STATE OF CALIFORNIA.______________________________________ ______________________RYAN RONCO DATECOUNTY RECORDER OF PLACER COUNTY___________________________________DEPUTYFILE NO. __________________________ FEE_____________
LEGENDAPN BOUNDARY LINENOTESANNEXATION BOUNDARY LINE
113
City Council
Staff Report
Subject:
Intention to Establish Vista Oaks as a Future Annexation Area of Community Facilities District No. 5
Date:
June 25, 2024
Submitted By:
Megan Bressem, Management Analyst
Daniel Choe, Deputy Director of Administrative Services Department:
Administrative Services - Finance
Recommendation:
Adopt a Resolution of the City Council of the City of Rocklin of Intention to Establish Territory as a Future Annexation Area of Rocklin Community Facilities District No. 5 (Vista Oaks, APNs 046-010-007-000 and 046-020-003-000).
Background:
Vista Oaks, Assessor's Parcel Numbers 046-010-007-000 and 046-020-003-000, is a planned residential development property located along the northern terminus of Monument Springs Drive and western terminus of China Garden Road. The development of Vista Oaks is conditioned on, among other things, annexation into Community Facilities District (CFD) No. 5.
CFD No. 5 finances the operation and maintenance of publicly owned parks, parkways, landscaping and street/parkway lighting.
Currently, the CFD No. 5 annexation process entails taking the item to two separate City Council meetings. At the first City Council meeting, a resolution of intention to annex territory into CFD No. 5 is presented and a public hearing date is scheduled. The resolution of intention includes the proposed CFD No. 5 tax rate and method of apportionment. At the second City Council meeting, the public hearing and special annexation election is held. If the ballots are favorable, the City Council then approves a resolution of annexation into CFD No. 5, setting the rates and granting authority to levy the district’s tax on the newly annexed territory.
For CFD No. 5, City staff calculates the tax on the annexed property based on the projected costs of maintaining services (authorized by the CFD) as a result of a project’s improvement plans. Once the property is annexed into CFD No. 5, changing the tax rate assigned to the property is a lengthy process and requires further approval by the landowner(s).
Vista Oaks will be developed in three phases. As only Phase 3 is currently being developed, City staff does not have enough information to determine the cost to the City of maintaining future services for the two remaining phases once they are developed. To ensure in the future Item Number 3L.
114
that the City receives the funding needed to provide the services required once development within CFD No. 5 has taken place, it is necessary to utilize a different approach to the annexation process.
California Government Code Article 3.5 of Chapter 2.5 of Part 1 of Division 2 of Title 5, Annexation of Territory, provides for a resolution to identify property proposed for future annexation into an existing CFD with the condition that parcels within that territory may be annexed with unanimous approval of the owner or owners of each parcel or parcels at the time the parcel or those parcels are annexed. This will allow the project (and therefore all three phases) to be approved to be designated as a future annexation area.
The territory to be designated as a future annexation area is two parcels of approximately 91 acres. The proposed future annexation map is included as Attachment 2 for reference. The phase designated for immediate development of Vista Oaks (Phase 3) can be annexed into CFD No. 5 right away with unanimous approval of the owner, which meets the condition to development of the project. The two remaining undeveloped phases (Phases 1 & 2) will be placed for future development that will require the owner of those phases to annex into CFD No. 5 prior to approval of maps or improvement plans for development.
The landowner has submitted a petition and waiver letter for CFD No. 5, which requests the annexation to occur and waives some of the procedural requirements for processing the establishment of the future annexation area. With the petitions and waivers, the City Council may adopt the resolution of intention (Attachment 1) at this meeting, and proceed with the public hearing and establish the territory as a future annexation area at its regular meeting on August 13, 2024.
Fiscal Impact:
There is no direct fiscal impact to the General Fund from the staff recommendation.
Establishment of the future annexation area, and subsequently future annexations into CFD No. 5, would allow special taxes to be levied and collected to pay for services provided to the annexation territory.
ATTACHMENTS:
1. Resolution
2. Annexation Map
115
RESOLUTION NO. 2024-
RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF ROCKLIN OF INTENTION TO ESTABLISH
TERRITORY AS A FUTURE ANNEXATION AREA
OF ROCKLIN COMMUNITY FACILITIES DISTRICT NO. 5
(Vista Oaks, APNs 046-010-007-000 and 046-020-003-000)
Establishment of Future Annexation Area
The City Council of the City of Rocklin does resolve as follows:
RESOLVED by the City Council (the “Council”) of the City of Rocklin (the “City”), County of Placer, State of California, that:
WHEREAS, this Council has conducted proceedings to establish Community Facilities District No. 5 (the “CFD”) pursuant to the Mello-Roos Community Facilities Act of 1982, as amended (the "Act"), Chapter 2.5 of Part 1 of Division 2 of Title 5, commencing at Section 53311, of the California Government Code; and WHEREAS, under the Act, this Council, as the legislative body for the CFD, is empowered with the authority to annex territory to the CFD and to establish areas which may be annexed into the CFD in the future, and now desires to undertake proceedings to establish territory as a Future Annexation Area of the CFD.
NOW, THEREFORE, IT IS HEREBY ORDERED as follows:
Section 1. Findings. This Council hereby finds and determines that public convenience and necessity require that territory be established as a Future Annexation Area of the CFD.
Section 2. Territory Described. The name of the existing CFD is “City of Rocklin Community Facilities District No. 5.” The territory originally included in the existing CFD is set forth in Book 3 of Maps of Community Facilities District at page 4 to which map reference is hereby made, as such map has been supplemented in connection with several subsequent annexations.
The territory now proposed to be established as a Future Annexation Area of the CFD is as shown on the Future Annexation Area Map captioned “Proposed Boundaries of Future Annexation Area Map No. 72 of Community Facilities District No. 5” on file with the City Clerk, the boundaries of which territory are hereby preliminarily approved and to which map reference is hereby made for further particulars. The City Clerk is hereby directed to cause to be recorded such Future Annexation Area Map, showing the territory to be established as a future annexation area, in the office of the County Recorder of the County of Placer within 15 days of the date of adoption of this resolution.
116
Reso. No. 2024-
Parcels within the Future Annexation Area shall be annexed to the CFD only with the unanimous approval (each, a “Unanimous Approval”) of the owner or owners of each parcel or parcels at the time that parcel or those parcels are annexed, without any requirement for further public hearings or additional proceedings.
Section 3. The Services. The types of public services financed by the CFD and pursuant to the Act consist of those municipal services as described in Exhibit A to the Resolution of Formation with respect to the CFD adopted by the Council as Resolution No. 96-255 on October 8, 1996 (the “Resolution of Formation”) and such additional services applicable only with respect to the territory in the Future Annexation Area as set forth in Exhibit A attached hereto (collectively, the “Services”). It is presently intended that, upon annexation of territory into the CFD from the Future Annexation Area, the Services specified in the Resolution of Formation will be provided, without preference or priority, to the existing territory in the CFD and such territory in the Future Annexation Area. Any territory annexed into the CFD from the Future Annexation Area may, with the Unanimous Approval of the owner of such territory at the time of annexation, authorize additional services of the CFD to be applicable to such annexed territory.
Section 4. Special Tax. Except to the extent that funds are otherwise available to the CFD to pay for the Services, a special tax sufficient to pay the costs thereof is intended to be levied annually within the CFD, and collected in the same manner as ordinary ad valorem property taxes.
The special tax proposed to pay for certain Services to be supplied within the territory proposed to be annexed will be equal to the special taxes levied to pay for those same Services in the CFD, except that a higher or lower tax may be levied within the territory proposed to be annexed or to be annexed in the future to the extent that the actual cost of providing the Services in that territory is higher or lower than the cost of providing those Services in the other areas of the CFD.
The existing rate and method of apportionment of special tax (the “Rate and Method”) among the parcels of real property within the existing territory of the CFD, as described in Exhibit A to the Resolution of Formation, will be applicable to the Future Annexation Area unless and until altered with respect to any territory in the Future Annexation Area as approved in an Unanimous Approval. The proposed rate and method of apportionment of the special tax among the parcels of real property within the territory proposed to be annexed to the CFD, in sufficient detail to allow each landowner within the territory proposed to be annexed to the CFD to estimate the maximum amount such owner will have to pay, are described in the Rate and Method. Any territory annexed into the CFD from the Future Annexation Area may, with the Unanimous Approval of the owner of such territory at the time of annexation, authorize changes to the Rate and Method to be applicable to such annexed territory. 117
Reso. No. 2024-
A special tax shall be levied in the Future Annexation Area only with the Unanimous Approval of the owner or owners of each parcel or parcels at the time that parcel or those parcels are annexed, without any requirement for further public hearings or additional proceedings.
Section 5. Public Hearing. Tuesday, August 13, 2024 at 6:00 p.m. or as soon as possible thereafter, in the City Hall, Council Chambers, 3970 Rocklin Road, Rocklin, California 95677, be, and the same are hereby appointed and fixed as the time and place when and where this Council, as legislative body for the CFD, will conduct a public hearing on the matters described in this Resolution.
Section 6. Notice. The City Clerk is hereby directed to cause notice of said public hearing to be given by publication one time in a newspaper of general circulation in the area of the CFD, including the area to be established as a Future Annexation Area of the CFD. The publication of said notice shall be completed at least 7 days before the date herein set for said hearing. The City Clerk may (but is not required to) also cause a copy of such notice and a copy of this Resolution to be mailed to each landowner within the territory proposed to be established as a Future Annexation Area, which notice and resolution shall be mailed at least 15 days before the date of said hearing. Such notice shall be substantially in the form specified in Section 53339.4 of the Act, with a summary form specifically authorized.
PASSED AND ADOPTED this 25th day of June, 2024, by the following vote:
AYES: Councilmembers:
NOES: Councilmembers:
ABSENT: Councilmembers:
ABSTAIN: Councilmembers:
________________________________
Greg Janda, Mayor
ATTEST:
____________________________
Avinta Singh, City Clerk
118
to Reso. No. 2024-
EXHIBIT A
CITY OF ROCKLIN
Community Facilities District No. 5
List of Services for Future Annexation Area
Street/Parkway Lighting
Streetscape/Parkway
Parks
Administration
Drainage and Waterway Maintenance
Open Spaces and Park Trail Maintenance
Roadway Maintenance
Maintenance of Signalized Intersections, Safety Lighting, Roadway Landscaping and Associated Signage and Infrastructure
119
S 00°21'10" E 1324.64'S 89°37'06" W L=1312.02'
S 89°34'01" W 1562.87'
S 39°00'05" EL=50.00'
S 15°53'05" W L=39.33'
N 00°22'49" W L=1778.40'
L=374.43'R=488.13'Δ=43°57'01"S 28°36'29" W L=94.37'
R=6,145'L=284.23'Δ=02°39'01"N 51°03'04" EL=104.05'
S 17°09'06" E L=52.74'S 28°07'52" W L=46.91'L=38.63' R=25.00' Δ=88°32'01"L=92.70' R=42.57' Δ=124°46'01"S 89°37'06" W L=944.56'ANNEXATION AREA046-020-00343.3 ± ACRESS 24°06'04" W L=52.37'L=99.22' R=69.42' Δ=81°53'42"L=149.55'R=141.21'Δ=60°40'50"S 07°49'13" E L=27.10' ANNEXATION AREA046-010-00747.1 ± ACRES
VIOLA WAYCALVERHALLWAYMONUMENT SPRINGSDRIVEURSULA WAY
CREEKSIDE COURT
INTERSTATE 80S 50°25'59" W L=2600.17' L=2485.03'S 50°25'59" WL=115.14'N 49°58'43" EL=498.16'FUTUREFUTUREFUTUREANNEXATIONAREA BOUNDARYFUTUREANNEXATIONAREA BOUNDARYFUTUREANNEAXATIONAREA BOUNDARY
FUTUREANNEAXATIONAREA BOUNDARYFUTUREANNEAXATIONAREA BOUNDARY
FUTUREANNEAXATIONAREA BOUNDARY
VICINITY MAP
VISTA OAKSPROPOSED BOUNDARIES OF FUTUREANNEXATION AREA MAP NO. 72 OFCOMMUNITY FACLITIES DISTRICT NO. 5PORTION OF SECTION 30, T. 11N., R.7 E., MDB&MCITY OF ROCKLIN, COUNTY OF PLACER, STATE OF CALIFORNIAJUNE 2024 1" = 250'ENGINEERING & PLANNING1504 EUREKA ROAD, SUITE 110ROSEVILLE, CA 95661 916.786.0685 CITY COUNCIL'S STATEMENTI HEREBY CERTIFY THAT THE WITHIN MAP SHOWING PROPOSED BOUNDARIES OFFUTURE ANNEXATION AREA OF COMMUNITY FACILITIES DISTRICT NO. 5 , CITY OFROCKLIN, COUNTY OF PLACER, STATE OF CALIFORNIA, WAS APPROVED BY THE CITYCOUNCIL OF THE CITY OF ROCKLIN, AT A MEETING THEREOF, HELD ON THE ______ DAYOF _______________2024, BY IT'S RESOLUTION NO. _________________.__________________________________________ _____________________AVINTA SINGH DATECITY CLERK OF THE CITY OF ROCKLINCITY CLERK'S STATEMENTFILED IN THE OFFICE OF THE CITY CLERK OF THE CITY OF ROCKLIN THIS ______ DAY OF______________2024._________________________________________ _____________________AVINTA SINGH DATECITY CLERK OF THE CITY OF ROCKLINRECORDER'S STATEMENTFILED THIS _____ DAY OF _______________, 2024, AT THE HOUR OF _______ _.M.,IN BOOK _____ OF MAPS OF ASSESSMENT AND COMMUNITY FACILITIESDISTRICTS, AT PAGE _______, IN THE OFFICE OF THE COUNTY RECORDER INTHE COUNTY OF PLACER, STATE OF CALIFORNIA.______________________________________ ______________________RYAN RONCO DATECOUNTY RECORDER OF PLACER COUNTY___________________________________DEPUTYFILE NO. __________________________ FEE_____________
NOTESLEGENDAPN BOUNDARY LINEFUTURE ANNEXATION AREA BOUNDARY LINE 120
City Council
Staff Report
Subject:
Amendment to the FY 2023/24 Budget
Date:
June 25, 2024
Submitted By:
Zonousia Lee, Budget Officer
Daniel Choe, Deputy Director of Administrative Services Department:
Administrative Services - Finance
Recommendation:
Adopt a Resolution of the City Council of the City of Rocklin Amending the Fiscal Year 2023/24 Budget.
Background:
As part of the fiscal year-end review, finance staff conducted a comprehensive assessment of all fiscal year (FY) 2023/24 budgetary actions previously presented to the City Council, as well as any adjustments needed for completeness. Staff has identified the necessary budget amendments based on the appropriations previously approved by the City Council for FY 2023/24. The recommended budget adjustments are attached as Exhibit A (Attachment 2) and detailed below:
On May 14, 2024, the City Council adopted Resolution No. 2024-107, approving Amendment No. 1 to the Agreement for Consulting Services with Mark Thomas & Company, Inc. for the Rocklin Road at Pacific Street Roundabout Project. Although, staff discussed the necessary budget adjustment for this amendment, the resolution did not reflect the required budgetary action. The attached resolution includes the necessary budgetary actions to support the project.
On May 28, 2024, the City Council adopted Resolution No. 2024-124, awarding a construction contract for the Parking Lot Extension project at the Whitney Community Park. Section 3 of the resolution referenced an incorrect funding source, which has now been revised.
Fiscal Impact:
Sufficient funds are available in their respective funds in the FY 2023/24 Operating Budget to support the staff recommendation.
Item Number 3M.
121
ATTACHMENTS:
1. Resolution
2. Resolution Exhibit A
122
RESOLUTION NO. 2024-
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROCKLIN
AMENDING THE FISCAL YEAR 2023/24 BUDGET
WHEREAS, as part of this review, staff has identified areas requiring operational changes as well as the necessary budget amendments based on the appropriations previously approved by the City Council from the fiscal year (FY) 2023/24 budget to date. The recommended budget adjustments are attached hereto as Exhibit A.
NOW, THEREFORE, the City Council of the City of Rocklin does resolve as follows:
Section 1. The FY 2023/24 budget is amended as outlined in Exhibit “A,” attached hereto and incorporated herein by reference.
PASSED AND ADOPTED this 25th day of June 2024, by the following vote:
AYES: Councilmembers:
NOES: Councilmembers:
ABSENT: Councilmembers:
ABSTAIN: Councilmembers:
____________________________________
Greg Janda, Mayor
ATTEST:
__________________________________
Avinta Singh, City Clerk
123
Exhibit A
Fund Name (No.) Net Change
Capital Construction Fees (Fund 304) (476,000)$
Northwest Rocklin Community Park Fees
Fund (307)
(184,000)$
Department Fund Name (No.) FTE
Revenue/
Reimbursement
Adjustments
Expenditure
Adjustments Description
General Fund
Community Development General Fund (100) ‐ ‐ $ ‐ $ Transfer $476,000 in Fund 100 to the Bicycle Pump Track and Parking Lot Extension project (Project No. 45225) from the City Hall Office Space Study and Remodel project (Project No. 45421). This item was presented to the City Council at the May 28, 2024 meeting.
Total General Fund ‐ ‐ $ ‐ $ Other Funds
Community Development Capital Construction
Fees (Fund 304)
‐ ‐ $ 476,000$ Appropriate $476,000 from Fund 304 fund balance to the City Hall Office Space Study and Remodel project (Project No. 45421). This item was previously approved by the City Council at the May 28, 2024 meeting.
Community Development Northwest Rocklin
Community Park Fees
Fund (307)
‐ ‐ $ 184,000$ Appropriate $184,000 from Fund 307 fund balance to the Bicycle Pump Track and Parking Lot Extension project (Project No. 45225). This item was previously approved by the City Council at the May 28, 2024 meeting.
Public Services SB325 Sales Tax (Fund
210)
‐ ‐ $ ‐ $ Transfer $492,669 in Fund 210 from the Sierra College Boulevard Roadway Rehabilitation project (Project No.
50091) to the Pacific Street Roundabout project (Project No. 50131). This item was presented to the City Council at the May 14, 2024 meeting.
Total Other Funds ‐ ‐ $ 660,000$ Changes in Fund Balance
Description
Budget Adjustments
Adjust the fund balance to reflect the appropriation to support the project Adjust the fund balance to reflect the appropriation to support the project 124
City Council
Staff Report
Subject:
Various Personnel Updates
Date:
June 25, 2024
Submitted By:
Tameka Usher, Administrative Services
Department:
Administrative Services - Human Resources
Recommendation:
A
.
Adopt a Resolution of the City Council of the City of Rocklin Approving and Authorizing the City Manager to Execute the City of Rocklin Workplace Violence Prevention Plan, and Repealing and Replacing any Resolution in Conflict Herewith.
B
.
Adopt a Resolution of the City Council of the City of Rocklin Approving the City of Rocklin Travel Policy, Authorizing the City Manager to Execute the Travel Policy, and Replacing and Replacing Resolution No. 2014-190.
C
.
Adopt a Resolution of the City of Council of the City of Rocklin Approving the Revised Salary Schedules for Rocklin Police Officers’ Association; Rocklin Police Officers’ Association; Rocklin Police Officers' Association Public Safety Managers’ Bargaining Unit; Rocklin Firefighters’ Union; Rocklin Public Service Employees’ Bargaining Unit; and Rocklin Management, Confidential, and Unrepresented Employees’ Resolution.
Background:
Workplace Violence Prevention Plan Policy
Pursuant to California Senate Bill 553, the California Occupational Safety and Health Act of 1973 (Cal/OSHA) was modified to require employers to establish and implement an effective workplace violence prevention plan (WVPP) by July 1, 2024, and provide training to all employees consistent with the requirements under Labor Code §6401.7, 6401.9.
To maintain an effective program, staff, with the assistance of legal counsel, developed a WVPP and training that aligns with current state regulations.
The WVPP is included as Attachment 2, which meets state requirements. Based on the authority required to effectively administer the program, staff recommends the City Council authorize the City Manager or his/her designee to implement and maintain the WVPP.
The
WVPP will also repeal and replace the Administrative Policy “Prohibition of Violence in the Workplace.”
Item Number 3N.
125
Travel Policy
The City Council adopted a travel policy and approved subsequent revisions, most recently in 2014 via Resolution No. 2014-190. In the ten years since this policy was modified, revisions to the City’s Travel Policy have become necessary to incorporate additional expectations and clarity when employees travel for City business.
Staff facilitated multiple engagement opportunities to ensure a comprehensive review was conducted, including input from various stakeholders, such as department directors, legal counsel, and the authorized agents of represented bargaining units.
In accordance with the City of Rocklin Employee-Employer Resolution, Human Resources has satisfied the meet and confer obligation (with AFSCME, Rocklin Firefighter’s Union, Rocklin Police Officers’ Association, and Rocklin’s Police Officers’ Association Public Safety Managers’) regarding the proposed changes.
Salary Schedule Adoption
Title 2 of the California Code of Regulations, section 570.5 requires the City's salary schedules to be adopted at a public meeting.
Police and Fire
In 2022, the City Council adopted Resolutions No. 2022-129, No. 2022-143, and No, 2022- 159, which established Memorandums of Understanding (MOU) between the City of Rocklin and Rocklin Police Officers' Association, Rocklin’s Police Officers’ Association Public Safety Managers’, and Rocklin Firefighter's Union, Local 3847, respectively.
Each of the MOUs referenced above contains a provision that states “… effective the first full
pay period of July 2024, each classification shall receive a 2.0% base salary increase .”
Public Service Employees and Management Confidential and Unrepresented Employees Resolution
In 2023, the City Council adopted Resolutions No. 2023-131 and No. 2023-134, which established an MOU between the City of Rocklin and AFSCME Council 57, Local 146, representing the Public Service Employees Bargaining Unit and revised the Management, Confidential, and Unrepresented Employees Resolution.
Each of the documents referenced above contains a provision that states “… effective the first
full pay period of July 2024, each classification shall receive a 2.5% base salary increase .”
Attached as Exhibits 1, 2, 3, 4, 5, and 6 are the updated salary schedules reflecting the base salary increases as noted herein.
Fiscal Impact:
Travel Policy and Workplace Violence Prevention Plan Policy - Staff recommendations are cost-neutral and have no direct fiscal impacts on the General Fund.
Salary Schedule Adoption - The cost of the base salary increases is accounted for and included in the Fiscal Year 2024/25 Operating Budget.
126
ATTACHMENTS:
1. Resolution A
2. Resolution A Exhibit 1 - Workplace Violence Prevention Plan
3. Resolution B
4. Resolution B Exhibit 1 - Travel Policy
5. Resolution C
6. Resolution C Exhibit 1 - POA Salary Schedule
7. Resolution C Exhibit 2 - PSM Salary Schedule
8. Resolution C Exhibit 3 - Fire Salary Schedule
9. Resolution C Exhibit 4 - Public Services Employees Salary Schedules A and B
10. Resolution C Exhibit 5 - Confidential Salary Schedules A and B
11. Resolution C Exhibit 6 - Management Salary Schedule 127
RESOLUTION NO. 2024-
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROCKLIN APPROVING AND
AUTHORIZING THE CITY MANAGER TO EXECUTE THE CITY OF ROCKLIN WORKPLACE
VIOLENCE PREVENTION PLAN, AND REPEALING AND REPLACING ANY RESOLUTION IN
CONFLICT HEREWITH
WHEREAS, In January 2024, Senate Bill 553 was passed requiring employers to establish and implement a workplace violence prevention plan and provide training by July 1, 2024; and
WHEREAS, the City of Rocklin is committed to ensuring a safe workplace for City employees; and
WHEREAS, City staff recommends replacing the Administrative Policy Prohibition of Violence in the Workplace; and
WHEREAS, the Workplace Violence Prevention Plan requires ongoing administration; therefore, staff recommends authorizing the City Manager or his/her designee to implement and maintain the City’s plan related to workplace safety.
NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Rocklin as follows:
Section 1. Effective, June 25, 2024, the City Council hereby approves and adopts the City of Rocklin Workplace Violence Prevention Plan attached hereto as Exhibit 1.
Section 2. The City Council hereby authorizes the City Manager or his/her designee to administer the Workplace Violence Prevention Plan Policy.
PASSED AND ADOPTED this 25th day of June, 2024, by the following vote:
AYES: Councilmembers:
NOES: Councilmembers:
ABSENT: Councilmembers:
ABSTAIN: Councilmembers:
ATTEST:
Greg Janda, Mayor
Avinta Singh, City Clerk
128
Workplace Violence
Prevention Plan
July 1, 2024
129
2 TABLE OF CONTENTS
I. PURPOSE ...................................................................................................................................................... 3 II. SCOPE OF COVERAGE .................................................................................................................................... 3 III. EFFECTIVE DATE ............................................................................................................................................ 3 IV. DEFINITIONS ................................................................................................................................................. 3 V. PROHIBITION OF VIOLENCE IN THE WORKPLACE .......................................................................................... 6 VI. THE PLAN ...................................................................................................................................................... 6 A. ACCESS............................................................................................................................................................... 6 B. IMPLEMENTATION ................................................................................................................................................ 7 C. OBTAINING ACTIVE EMPLOYEE INVOLVEMENT IN DEVELOPING AND IMPLEMENTING THE PLAN ............................................ 8 D. COORDINATION WITH OTHER EMPLOYERS ............................................................................................................... 10 E. COMPLIANCE ..................................................................................................................................................... 10 F. COMMUNICATING TO EMPLOYEES ABOUT WORKPLACE VIOLENCE ............................................................................... 11 G. IDENTIFICATION, EVALUATION, AND CORRECTION OF WORKPLACE VIOLENCE HAZARDS ................................................... 17 H. RESPONDING TO WORKPLACE VIOLENCE EMERGENCIES ............................................................................................. 21 I. TRAINING ......................................................................................................................................................... 21 VII. RECORDKEEPING .................................................................................................................................... 22 VIII. RESPONSIBLE DEPARTMENT .................................................................................................................. 23
130
3 I. Purpose
The purpose of the City of Rocklin’s (City) Workplace Violence Prevention Plan (WVPP or Plan) is to establish, implement, and maintain an effective workplace violence prevention plan as required under Labor Code sections 6401.7 and 6401.9.
Specifically, the Plan contains procedures to address the following statutory requirements:
A. Record information in a Violent Incident Log for every incident of workplace violence, as defined herein.
B. Provide effective training to employees on the legal requirements related to the prevention of workplace violence, including but not limited to the City’s WVPP.
C. Maintain records of the following: (a) workplace violence hazards, (b) City employee (hereinafter referred to as “employees”) trainings, (c) Violent Incident Logs, and (d) the investigation of any incident of workplace violence.
D. Ensure certain records are made available to the Division of Occupational Safety and Health (“Division” or “DOSH”) , employees, and any authorized employee representatives.
This document also contains the City’s administrative policy prohibiting violence in the workplace.
II. Scope of Coverage
The WVPP shall apply to all City Workplaces, unless a Workplace is expressly exempted from coverage as noted herein.
“Workplace” is defined as any City building, facility, City Hall, Administration Building, Police Station, Fire Station, Corporation Yard, Rocklin Event Center, park, recreation site and facility, office space, storage location, vehicle, or any other location that the City owns , operates, leases, or maintains for City business.
III. Effective Date
The effective date of this Plan is July 1, 2024. The Plan shall continue in full force and effect until repealed or rescinded.
Date of last review: N/A
Date of last revision: N/A
IV. Definitions
For the purposes of the WVPP, the following definitions apply:
A. “Access” means the right and opportunity to examine and receive a copy of the WVPP. 131
4 B. “Designated representative” means any individual or organization to whom an employee gives written authorization to exercise a right of Access. A recognized or certified collective bargaining agent shall be considered a designated representative for the purpose of Access to the WVPP.
C. “Emergency” or “e mergencies” means unanticipated circumstances that can be life threatening or pose a risk of significant injuries to employees or other persons.
D. “Engineering controls” mean an aspect of the built space or a device that removes a hazard from the workplace or creates a barrier between the worker and the hazard.
E. “Dangerous weapon” as used in this policy includes, but is not limited to, the following, but excluding any tools specifically required for the performance of an employee’s job duties:
A firearm, is any device designed to expel a projectile by means of an explosion and subsequent expanding gases.
Dangerous knives, which are knives with a blade length of greater than three inches measured from the handle to the tip, dirks, daggers, or any Balisong knife or switchblade knife, fitted for fighting and/or stabbing. Explosive devices of any kind, Slingshots, clubs, or sand clubs. Martial arts weapons, such as nunchaku sticks and throwing stars. Metal knuckles.
Air guns, pellet guns, blow guns.
Any replica or other item that simulates any of the above.
F. “Serious injury or i llness” means any injury or illness occurring in a place of employment, workplace or in connection with any employment that requires inpatient hospitalization for other than medical observation or diagnostic testing, or in which an employee suffers an amputation, the loss of an eye, or any serious degree of permanent disfigurement, but does not include any injury or illness or death caused by an accident on a public street or highway, unless the accident occurred in a construction zone.
G. “Threat of violence” means any verbal or written statement, including, but not limited to, texts, electronic messages, social media messages, or other online posts, or any behavioral or physical conduct, that conveys an intent, or that is reasonably perceived to convey an intent, to cause physical harm or to place someone in fear of physical harm, and that serves no legitimate purpose.
H. “Workplace violence” means any act of violence or t hreat of violence that occurs in the City’s covered Workplace. Workplace violence does not include lawful acts of self- defense or defense of others.
I. Workplace violence includes, but is not limited to, the following:
132
5 1. The threat or use of physical force against an employee that results in, or has a high likelihood of resulting in, injury, psychological trauma, or stress, regardless of whether the employee sustains an injury.
2. An incident involving a threat or use of a firearm or other dangerous weapon, including the use of common objects as weapons, regardless of whether the employee sustains an injury.
3. The following four (4) types of workplace violence:
a. “Type 1 violence” means workplace violence committed by a person who has no legitimate business at the workplace and includes violent acts by anyone who enters the workplace or approaches workers with the intent to commit a crime.
b. “Type 2 violence” means workplace violence directed at employees by customers, clients, patients, students, inmates, or visitors. c. “Type 3 violence” means workplace violence against an employee by a present or former employee, supervisor, or manager.
d. “Type 4 violence” means workplace violence committed in the Workplace by a person who does not work at that Workplace but has or is known to have had a personal relationship with an employee.
J. Rocklin’s “Workplace Violence Prevention Committee” (“Committee”) means the group of employees who assess the City’s workplace violence hazards and support in the implementation of the WVPP. These are the employees selected as Department Safety Coordinators in the City’s Injury and Illness Prevention Program.
K. “Violent Incident Log” or “Log” means the violent incident log required by this WVPP.
L. “Work practice controls” means procedures and rules, which are used to effectively reduce workplace violence hazards.
M. “Written authorization” means a request provided to the City containing the following information:
1. The name and signature of the employee authorizing a representative of the employee to access the WVPP on the employee’s behalf.
2. The date of the request.
3. The name of the designated representative (individual or organization) authorized to receive the WVPP on the employee’s behalf.
4. The date upon which the written authorization shall expire, if less than one (1) year.
N. “WVPP” means the Workplace Violence Prevention Plan or the “Plan.” 133
6 V. Prohibition of Violence in the Workplace
The City has a zero -tolerance policy for acts of violence in the workplace or in the course of conducting City business . Any unlawful violent actions committed by City employees, contractors, or agents, or by members of the public, while on City property or while using City facilities may be referred to criminal prosecution as appropriate. For City employees, this prohibition also applies while performing City business at other locations , and may result in administrative and/or disciplinary action up to and including termination.
In the interest of maintaining a workplace that is safe and free of violence, possession of or use of dangerous weapons is prohibited on City property, in City vehicles, or in any personal vehicle that is used for City business. This prohibition applies even if an individual is licensed in their private capacity to carry a concealed weapon. In addition, any other related object carried for the purpose of injuring or intimidating others is not permitted. This policy does not apply to law enforcement personnel who are engaged in law enforcement activities.
VI. The Plan
A. Access
The City makes the WVPP available and accessible to employees, d esignated representatives, and representatives of the DOSH at all times.
1. Employees
The City will provide access to the WVPP to employees as follows:
a. The City has made and will continue to make the WVPP available and will provide access to employees by providing an employee a physical copy of the WVPP within five (5) business days of receiving the request for access from the employee.
b. Whenever an employee requests a copy of the WVPP, the City shall provide the requesting employee a printed copy of the WVPP, unless the employee agrees to receive an electronic copy of the WVPP. c. The City will provide one (1) printed copy of the WVPP free of charge. If an employee requests additional copies of the WVPP within one (1) year of the previous request and the WVPP has not been updated with new information since the prior copy was provided, the City may charge reasonable, reproduction costs for the additional copies. d. An employee can access the WVPP through the City’s SharePoint site, HR -
Home (sharepoint.com), where the employee can review, print, and email the current version of the WVPP.
2. Designated Representatives
The City will make the WVPP available and provide a ccess to designated representatives in a manner consistent with Section V( A)(1) of the City’s WVPP 134
7 only after the employee provides written authorization to the City, unless otherwise stated.
The City makes the WVPP available and provides a ccess to any employee organization that represents employees in a manner consistent with WVPP Section V(a)(1) without requiring that an employee provide prior written authorization to the City.
3. DOSH Representatives
The City will make the WVPP available to DOSH representatives upon request , consistent with Labor Code § 6401.9(c)(1)(B).
B. Implementation
1. Workplace Violence Prevention Coordinator (“coordinator”) The individual(s) identified below shall serve as the City’s WVPP coordinator(s) and are authorized and responsible for implementing the WVPP:
Job Title/Position Contact
Information WVPP Responsibilities
Director of Administrative
Services
916-625-5055
Implementing the Plan and emergency
response.
Management Analyst 916-625-5025 Training and employee involvement, emergency response, and hazard
identification.
Specifically, the coordinator will be responsible for the following:
a. Serve as the Chair of the City’s WVPP Committee.
b. Establish and coordinate work practice controls.
c. Establish and coordinate engineering controls.
d. Respond to reports of workplace violence incidents and workplace violence hazards, including investigating incidents of workplace violence and workplace violence hazards.
2. Workplace Violence Prevention Committee
The City established a WVPP Committee to assess the City’s workplace violence hazards and determine preventative actions to be taken.
The Committee shall be comprised of the coordinator and two groups, 1) executives from the City Manager’s Office, Police Department, and City Attorney’s Office , and 2) employees identified as Department Safety Coordinators.
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8 The Committee shall undertake the following:
1. Meet regularly, but not less than quarterly.
2. Prepare and make available to any affected employees, the records of the workplace violence issues discussed at the Committee meetings and maintained for review by DOSH upon request.
3. Review the results of the City’s periodic, scheduled workplace inspections.
4. Review investigations of workplace violence and their causes, and where appropriate, submit suggestions to the City management for the prevention of future incidents.
5. Review investigations of alleged workplace violence hazards brought to the attention of any Committee member. When determined necessary by the Committee, the Committee may conduct its own inspection and investigation to assist in remedial solution(s).
6. Submit recommendations to assist in the evaluation of employee safety suggestions.
7. Upon request from the DOSH, verify abatement action taken by the City to abate citations issued by the DOSH.
8. Provide updates to the WVPP as necessary to the City Council and City Manager.
9. Prepare and implement workplace violence hazard, prevention, Plan, response, strategy, and related training subsequent to the initial training.
10. At minimum, review the WVPP under the following circumstances: (a) once annually; (b) when a deficiency is observed or becomes apparent; and (c) after a workplace violence incident.
a. A review of the WVPP should include the following: (a) review of the Violent Incident Log; (b) review employee comments and feedback on the WVPP; (c) review of other records; and (d) a physical inspection of the workplace.
b. Following the review, report any revisions to the P lan to employees.
C. Obtaining Active Employee Involvement in Developing and Implementing the Plan The City encourages the active involvement of employees in developing and implementing the WVPP through and by the measures discussed in the sections below.
1. Identifying, Evaluating, and Correcting Workplace Violence Hazards The City encourages the active involvement of employees in identifying, evaluating, and correcting workplace violence hazards through and by the 136
9 following means:
a. Regular meetings of the Committee comprised of employees that are charged with identifying, evaluating, and correcting workplace violence hazards.
b. Schedule general employee meetings at which workplace violence hazards are freely and openly discussed. Such meetings shall be regular, scheduled, and announced to all employees so maximum employee attendance can be achieved.
c. Survey employees regarding the identification, evaluation, and correction of any workplace violence hazards.
d. Provide a means by which emplo yees may provide anonymous feedback regarding the identification, evaluation, and correction of any workplace violence hazards.
e. Provide a means by which employees may report potential workplace violence hazards that the City will evaluate and, if necessary, correct.
2. Reporting and Investigating Workplace Violence Incidents The City encourages the active involvement of employees in reporting and investigating workplace violence incidents through and by the following means:
a. Regular meetings of the Committee comprised of both City and employee representatives who are charged with reviewing investigations of workplace violence incidents and hazards.
b. Encourage any employee who experiences, witnesses, or becomes aware of a violent incident, threat, or other workplace violence concern in which there is an immediate threat to the employee’s safety or the safety of others or where a serious injury or i llness has occurred to immediately report the incident to law enforcement, security, and/or emergency medical services.
c. Encourage any employee who experiences, witnesses, or becomes aware of a violent incident, threat, or other workplace violence concern to immediately report the facts and circumstances of the violent incident, threat, or other workplace violence concern to their supervisor or to Human Resources.
d. Encourage any employee who experiences, witnesses, or becomes aware of a violent incident, threat, or other workplace violence concern to participate in the investigation of the violent incident, threat, or other workplace violence concern.
e. Implement procedures to ensure that employees are not retaliated against for reporting or participating in investi gations of workplace violence incidents.
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10 f. Allocate adequate resources and training for employees to appropriately recognize workplace violence concerns.
g. Provide coverage, if necessary, so employees can immediately report a concern of workplace violence during their regularly scheduled work hours and participate in investigations.
h. Recognize and reward employees who report violent incidents, threat, or other workplace violence concerns.
D. Coordination with Other Employers
If and when applicable, the City shall coordinate the implementation of the WVPP with other employers in order to ensure that those employers and employees understand their respective roles, as provided in the Plan.
Specifically, the City will coordinate with other employers to ensure that all employees within the workplace are trained on workplace violence prevention and all w orkplace violence incidents involving any employee are reported, investigated, and recorded.
E. Compliance
The City will ensure compliance with the Plan through and by the measures discussed in this section.
1. Expectations of Employees Regarding Compliance with the Plan a. Employees
All employees sh all be familiar and comply with the WVPP and its requirements.
All employees are responsible for using safe work practices ; for refraining from acts of violence; for following all directives, policies, and procedures; and for assisting the City in maintaining a safe and secure work environment, including seeking assistanc e to resolve conflicts that may lead to acts of violence.
All employees are required to know, understand, and adhere to the safety rules that apply to their workplace and the work they perform.
All employees are expected to immediately report to a supervisor or manager any dangerous or threatening situations that occur in the workplace, and/or situations that occur outside the workplace which may affect workplace safety (e.g. where personal restraining orders have been issued).
All employees are required to attend and participate in all WVPP training. b. Managers and Supervisors
Managers and supervisors are responsible for implementing and maintaining the WVPP in their respective work areas and for ensuring that all employees adhere to the safety rules that apply in these work areas. 138
11 Managers and supervisors should answer questions that employees may have about the WV PP and its requirements, be able to direct employees to the c oordinator, or provide resources for employees to use that will answer their questions.
Managers and supervisors are expected to participate in investigation of workplace violence reports in their respective departments. Any report of violence shall be evaluated imme diately and confidentially, and appropriate action will be taken, where possible, in order to protect employees from further violence. Appropriate disciplinary action shall be taken when it is determined that City of Rocklin employees have committed acts of violence.
2. Methods to Ensure Compliance
a. Recognition of Employees Who Comply with the WVPP
The City may from time to time choose to recognize employees who comply with the WVPP through positive reinforcement procedures as long as the reinforcement procedures do not discourage employees from reporting workplace violence incidents or hazardous:
• Public recognition of employees who demonstrate compliance with the WVPP.
• Offering rewards for employees who demonstrate compliance with the WVPP.
• Acknowledgement for departments who demonstrate successful WVPP compliance.
b. Training and Retraining of Employees on Plan Requirements The City shall provide training regarding the Plan requirement s in accordance with this Plan and applicable law.
c. Enforcement of the Plan Requirements and Discipline for Non- Compliance
Managers and supervisors shall enforce the rules and requirements related to the WVPP fairly and uniformly.
Employees who do not comply with the safety rules and requirements set forth in the WVPP may be subject to discipline, up to and including termination.
Managers and supervisors who do not enforce the rules and requirements related to the WVPP or do not enforce them fairly and uniformly may be subject to discipline, up to and including termination.
F. Communicating to Employees about Workplace Violence
The City will communicate to employees about reporting and investigating w orkplace 139
12 violence incidents.
The City’s procedures for communicating to employees regarding w orkplace violence incidents include the following:
1. Reporting on violent incidents, threats, or other workplace violence concerns.
2. Informing affected employees of the general results of any investigation into workplace violence incidents, while protecting the privacy of affected and/or involved employees.
3. Informing affected employees of the corrective actions taken in response to the workplace violence incident, while protecting the privacy of affected and/or involved employees.
4. Communicating to employees about the prohibition on retaliating against employees who participate in the investigation of workplace violence incidents. a. Reporting Violent Incidents
An employee may report a workplace violence incident internally through any of the following means:
• Reporting the incident to any manager or supervisor v erbally or in writing.
• Reporting the incident to the c oordinator or other Committee member.
• Reporting the incident to a d esignated representative, who will facilitate a report to the City. The City will respond to the report after it receives the report from the designated representative. • Reporting by completing and submitting a physical or electronic form to Human Resources Division via
[email protected]
or interoffice
mail.
If the violent act constitutes an emergency (e.g. due to an ongoing physical altercation, violence that has resulted in an inju ry, or any other reason), employees should call 911 (9-911 from City landlines; or from a cell phone call 916-632-4093, which connects directly to dispatch) , and then report the incident internally.
b. Acceptance of and Response to Reports of Workplace Violence The City shall take all steps reasonably necessary to respond to all reports of workplace violence.
• Response
Immediately or as promptly as circumstances allow following a report of workplace violence and to the extent feasible , the City shall endeavor to respond by requesting assistance from first 140
13 responders or other qualified or trained individuals to provide first aid and emergency care to the injured employee(s), and by taking any measures reasonably necessary and feasible to prevent other employees from being injured.
The City will endeavor to ensure that any injured employees receive prompt medical evaluation and treatment and that to the extent feasible, injured employees are provided transport ation to receive medical care, if such care is not provided on site.
The City will report as promptly as possible under the
circumstances to DOSH (by phone or email) any serious injury or illness or death of an employee that is attributable to w orkplace violence by providing DOSH with the following information if known:
o Time and date of incident.
o Employer's name, address, and telephone number.
o Name and job title of the person reporting the incident. o Address of incident site.
o Name of person to contact at incident site.
o Name and address of injured employee(s).
o Nature of injuries.
o Location where injured employee(s) was/were taken for medical treatment.
o List and identity of other law enforcement agencies present at the incident site.
o Description of incident and whether the incident scene or instrumentality has been altered.
• Investigating the Report of Workplace Violence
The City shall take reasonable step s to investigate reports of workplace violence as provided in the following section. • Provision of Leave for Employees Who Are or May be Victims of Violence
The City shall not take adverse action against any employee who takes time off from work in order to seek a T emporary Restraining Order (TRO) or to obtain other assistance to help safeguard the “health, safety, or welfare” of the employee or their child based on such conduct. An employee may use paid sick leave pursuant to the City’s Paid Sick Leave Policy and/or other applicable policies to take time off from work for these purposes.
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14 An employee shall provide the City reasonable and advance notice of their intentio n to take time off from work for either of these purposes if feasible. If advance notice is not feasible, employees must provide a certification to the employer within a reasonable time after the absence.
• Temporary Restraining Orders
When an employee has suffered unlawful violence or a credible threat of v iolence from any individual, which may reasonably be carried out at any of the City’s workplaces, the City may attempt to obtain a TRO on behalf of the employee.
c. Investigation of Workplace Violence
The City shall respond to reports of w orkplace violence or a threat of violence by promptly initiating an investigation, as applicable.
The City’s investigation of workplace violence or a threat of violence may include, but not necessarily be limited to, the following steps or measures, as applicable:
• Visiting the scene of an incident as soon as safe and practicable. • Collection of facts on who, what, when, where, and how the incident occurred.
• Collection of statements from involved parties, such as employees, witnesses, law enforcement, and/or security personnel.
• Reviewing security footage of existing security cameras if applicable.
• Collection of photographic or video evidence of damage or injuries, where appropriate.
• Examining the workplace for se curity risk factors associated with the incident, including any previous reports of inappropriate behavior by the perpetrator.
• Consultation with the affected employees, witnesses, and Committee members to identify potential contributing causes. • Obtaining any reports completed by law enforcement.
• Assessment of any threat of violence, identifying the following, as applicable and to the extent the information is known by the City:
o The exact nature and context of the threat and/or
threatening behavior.
o The identified target.
o The person’s apparent motivation.
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15 o The person’s ability to carry out the threat.
o The person’s background, including work history, criminal record, mental health history, and past behavior on the job.
Following an investigation, the City may take the following measures, as applicable:
• Notify the affected employees of the general results of the investigation, while protecting the privacy of affected and/or involved employees.
• Collaborate with the Committee to recommend corrective action. • Implement changes in e ngineering controls, procedures, or policies, if appropriate.
• Establish updated work practice controls, if necessary.
The City shall retain records of workplace violence incident investigations for a minimum of five (5) years.
d. Documentation in Violent Incident Log
All workplace violence incidents shall be subsequently r ecorded in the Violent Incident Log. Information that is recorded in the Log for each incident shall be based on information solicited from the employees who experienced the w orkplace violence , on witness statements, and on investigation findings. The City shall omit from the Log any element of personal identifying information that would be sufficient to allow identification of any person involved in a workplace violence incident.
The information recorded in the Log shall include all of the following:
• The date, time, and location of the incident.
• The workplace violence type or types (e.g., Type 1, Type 2, Type 3, or Type 4).
• A detailed description of the incident.
• A classification of who committed the w orkplace violence , including whether the accused perpetrator was:
o A client or customer
o Family or friend of a client or customer
o Stranger with criminal intent
o Co-worker
o Supervisor or manager
o Partner or spouse
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16 o Parent or relative
o Other perpetrator
• A classification of circumstances at the time of the incident, including, but not limited to, whether the employee was:
o Completing usual job duties
o Working in poorly lit areas
o Rushed
o Working during a low staffing level
o Isolated or alone
o Unable to get help or assistance
o Working in a community setting
o Working in an unfamiliar or new location
• A classification of where the incident occurred, such as in the workplace, parking lot or other area outside the workplace, or other area.
• The type of incident, including, but not limited to, whether it involved any of the following:
o Physical attack without a weapon, including, but not limited to, biting, choking, grabbing, hair pulling, kicking, punching, slapping, pushing, pulling, scratching, or spitting.
o Attack with a weapon or object, including, but not limited to, a firearm, knife, or other object.
o Threat of physical force or threat of the use of a weapon or other object.
o Sexual assault or threat, including, but not limited to, rape, attempted rape, physical display, or unwanted verbal or physical sexual contact.
o Animal attack.
o Other.
• Consequences of the incident, including, but not limited to:
o Whether security or law enforcement was contacted and their response.
o Actions taken to protect employees from a continuing
threat or from any other hazards identified as a result of the incident.
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17 • Information about the person completing the Log, including their name, job title, and the date completed.
e. Prohibition on Retaliation
The City has implemented the following measures to prevent and prohibit retaliation against those who report workplace violence , a threat of violence, or hazards related to w orkplace violence, or who participate in the investigation of such incidents or hazards:
• The City responds to reports of w orkplace violence , a threat of violence, or hazards related to workplace violence in a prompt and timely manner.
• The City provides employees multiple channels by which to report incidents, hazards, or concerns, including anonymously and through or by a designated representative.
• The City admonishes managers and supervisors not to retaliate against any employee who reports workplace violence, a threat of violence, or hazards related to workplace violence , or any employee who participates in the investigation of such incidents or hazards.
• The City trains all employees that retaliation against any employee who reports w orkplace violence, a t hreat of v iolence, or hazards related to workplace violence, or any employee who participates in the investigation of such incidents or hazards is express ly prohibited and that there are consequences, such as discipline, for retaliation against such employees.
G. Identification, Evaluation, and Correction of Workplace Violence Hazards
1. Identification of Workplace Violence Hazards
The City shall undertake all reasonably necessary actions within its power and control to identify workplace violence hazards.
The City s hall conduct inspections of its workplace(s) to identify w orkplace violence hazards.
Specifically, the City shall conduct inspections under the following circumstances:
a. When the WVPP is first established.
b. After each workplace violence incident.
c. Whenever the City is made aware of a new or previously unrecognized hazard.
d. Annually.
Periodic inspections to identify and evaluate w orkplace violence and hazards will be performed by the following employees in the following areas of the workplace:
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18 Name of Employee/Job Title of Employee Department Inspection Area- lobby, reception, parking lot, breakroom.
Deputy Fire Chief Fire Stations- 23,24,25 and Administration Director of Community Development Community Development and old City Hall Executive Assistant Police
Administrative Assistant Parks and Recreation
Environmental Services Technician Public Works
Associate Management Analyst Executive Offices (City Manager and City Attorney)
Management Analyst Administrative Services and City Clerk
The City Manager and Department Directors will identify the names of specific individuals or their designees from the respective Departments who hold the job titles stated in this chart and will inform and update City staff on an ongoing basis, by email, of any changes and updates to the names of those designated.
Inspections for workplace violence hazards may include assessing factors specific to the City’s workplace, such as the following:
a. The exterior and interior of the workplace for its attractiveness to robbers. b. The need for violence surveillance measures, such as mirrors and cameras. c. Procedures for employee response during a robbery or other criminal act, including the City’s policy prohibiting employees, who are not security guards, from confronting violent persons or persons committing a criminal act.
d. Procedures for reporting suspicious persons or activities. e. Effective location and functioning of emergency buttons and alarms. f. Posting of emergency telephone numbers for law enforcement, fire, and medical services.
g. Whether employees have access to a telephone with an outside line. h. Whether employees have effective escape routes from the workplace. i. Whether employees have a designated safe area where they can go to in an emergency.
j. Adequacy of workplace security systems, such as door locks, entry codes or badge readers, security windows, physical barriers, and restraint systems.
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19 k. Frequency and severity of threatening or hostile situations that may lead to violent acts by persons who are service recipients of the City our establishment.
l. Employees’ skill in safely handling threatening or hostile service recipients. m. Effectiveness of systems and procedures that warn others of actual or potential workplace violence danger or that summon assistance, e.g., alarms or panic buttons.
n. The use of work pra ctices such as the "buddy" system for specified emergency events.
o. The availability of employee escape routes.
p. How well the City management and employees communicate with each other.
q. Access to and freedom of movement within the workplace by non- employees, including recently discharged employees or persons with whom one of our employees is having a dispute.
r. Frequency and severity of employees’ reports of threats of physical or verbal abuse by managers, supervisors, or other employees. s. Any prior violent acts, threats of physical violence, verbal abuse, property damage or other signs of strain or pressure in the workplace.
2. Investigation of Workplace Violence Hazards
The City will initiate a reasonable investigation following the identification of a workplace violence hazard in order to evaluate the nature of the hazard.
The City may undertake the following as part of such investigation, as applicable:
a. Collection of statements from witnesses.
b. Collection of photographic or video evidence of damage or injuries, where appropriate.
c. Consultation with the affected employees, witnesses, and Committee members to identify potential contributing causes.
3. Correction of Workplace Violence Hazards
After the identification and investigation of a workplace violence hazard and after a workplace violence hazard inspection, the City will take appropriate steps to correct or respond to the hazard and prevent or control future or potential hazards by imple menting remedial measures, which may include but are not necessarily limited to:
a. Substitution: When possible, the City will correct a hazard by eliminating or substituting it with a safer work practice control (“substitution”). 147
20 b. Removal of Employees: In the event that a workplace violence hazard exists that cannot be immediately corrected without endangering employees or property, the City will remove all employees from the work site except those necessary to correct the existing hazard. Employees who are necessary to correct the hazard will be provided with necessary protection in order to protect them from the hazard.
c. Replacement of Equipment: If a piece of equipment is hazardous, the City will remove it from service and identify it as defective. d. Engineering Controls: The City w ill apply physical changes to either remove the hazard from the workplace or create a barrier between employees and the hazard. Based on the nature of the hazard and the needs of the workplace, e ngineering control str ategies may include the following: (a) using physical barriers (such as enclosures or guards) or door locks to reduce employee exposure to the hazard; (b) metal detectors; (c) panic buttons; (d) improved or additional lighting; and (e) more accessible exits (where appropriate).
e. Work Practice Controls: The City will adjust w ork practice controls if substitution or e ngineering controls are impossible or inappropriate.
Additional work practice controls may be necessary in addition to substitution and e ngineering controls to prevent future w orkplace violence hazards. Work p ractice control strategies may include the following: (a) hiring security guards and having them patrol the workplace interior and perimeter; (b) ensuring employees have access to a telephone with an outside line; posting emergency telephone numbers in the workplace for law enforcement, fire, and medical services; (c) improved or altered communication measures; (d) improved or altered policies of prohibited practices (such as a weapons ban or limitation of the amount of cash on hand); and a “buddy system” for specified e mergency events; (d) adding security cameras or mirrors.
f. Training: The City will educate employees about the identified hazard in subsequent WVPP training.
g. Collaborate with the Committee: The City will collaborate with the Committee on other ways to correct the hazard.
h. Notice to Affected Employees: The City will notify affected e mployees in writing of the corrective measures the City implemented to address the workplace violence hazard.
4. Recording Information regarding Workplace Violence Hazards The City will document the identification, investigation, and correction of workplace violence hazards and maintain such records for at least five (5) years following the identification, investigation, and correction of such hazards , or until such time as the law may otherwise require.
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21 The City shall record information in the Violent Incident Log for each workplace violence incident.
Information that is recorded in the Log for each incident shall be based on information solicited from the employee(s) who experience d the workplace violence, on witness statements, and on investigation findings.
The City will document all work -related injuries or illness caused by workplace violence that resulted in death, loss of consciousness, days away from work, restricted work act ivity or job transfer, or medical treatment beyond first aid to DOSH.
H. Responding to Workplace Violence Emergencies
The City will use an emergency alerting system to alert employees of the presence, location, and nature of workplace violence emergencies.
Following a w orkplace violence emergency, a notification through the alerting system will include information regarding the following:
1. The existence/presence of a workplace violence emergency.
2. The location of a workplace violence emergency.
3. The nature of the workplace violence emergency.
4. The appropriate response procedures for employees.
In a w orkplace violence emergency, employees can obtain help from any manager or supervisor, the c oordinator, any Committee member. Employees should promptly call 911 in the event of a ny workplace violence emergency. For other matters that require law enforcement, employees should call 916-625-5400 and then press 1. Pressing 1, will take you directly to Police dispatch. Employees should also notify their supervisor, manager as soon as possible.
I. Training
The City shall provide training when the P lan is first established and when new employees are hired.
The City shall ensure annual training thereafter.
The City shall provide training on all of the following subjects:
1. The City’s Plan, how to obtain a copy of the City ’s Plan at no cost, and how to participate in the development and implementation of the City’s Plan.
2. Definitions and requirements of the Plan.
3. How to report workplace violence incidents or concerns to the City or law enforcement without fear of reprisal.
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22 4. Workplace violence hazards specific to the employees’ jobs, the corrective measures the City has implemented, how to seek assistance to prevent or respond to violence, and strategies to avoid physical harm.
5. The City’s Violent Incident Log, and how to obtain copies of records related to workplace violence.
The training shall include an opportunity for interactive questions and answers with a person knowledgeable about the City’s WVPP.
The City s hall provide additional training when a new or previously unrecognized workplace violence hazard has been identifie d and when changes are made to the WVPP.
VII. Recordkeeping
The City shall maintain the following types of records for the following periods or until such time required by law:
Type of Record Maintenance Period
Records of workplace violence hazard
identification, evaluation, and correction.
Minimum of five (5) years
Training records, including training dates,
contents or a summary of the training
sessions, names and qualifications of persons
conducting the training, and names and job
titles of all persons attending the training
sessions.
Minimum of one (1) year
Violent Incident Logs. Minimum of five (5) years
Records of workplace violence incident
investigations. These records must not
contain medical information.
Minimum of five (5) years
The City shall ensure that records of workplace violence incident investigations do not contain any medical information including any information in electronic or physical form, in possession of or derived from a provider of health care, health care service plan, pharmaceutical company, or contractor regarding a patient’s medical history, mental health application information, reproductive or sexual health application information, mental or physical condition, or treatment that includes or contains any element of personal identifying information sufficient to allow identification of the individual.
The City shall make all records required by this WVPP available to DOSH upon request for purposes of examination and copying.
The City shall make the following records available to employees and their d esignated representatives, upon request and without cost, for examination and copying within fifteen 150
23 (15) calendar days of a request:
1. Records of workplace violence hazard identification, evaluation, and correction.
2. Training records.
3. Violent Incident Logs.
VIII. Responsible Department
Department of Administrative Services responsible for implementing the plan. 151
RESOLUTION NO. 2024-
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROCKLIN APPROVING THE CITY OF
ROCKLIN TRAVEL POLCY, AUTHORIZING THE CITY MANAGER TO EXECUTE THE TRAVEL POLICY, AND REPEALING AND REPLACING RESOLUTION NO 2014-190.
WHEREAS, On September 9, 2014, the City Council adopted the Travel Policy by way of Resolution No. 2014-190, superseding Resolution No. 2001-240; and WHEREAS, Human Resources updated the City of Rocklin Travel Policy to include additional expectations and clarity when employees travel for City business; and WHEREAS, City staff performed a program review and recommends repealing and replacing the current City of Rocklin Travel Policy, Resolution No. 2014-190; and WHEREAS, the revised City of Rocklin Travel Policy supersedes any conflicting resolutions.
NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Rocklin as follows:
Section 1. Resolution No. 2014-190 is hereby rescinded.
Section 2. Effective, June 25, 2024, the City Council hereby approves and adopts the City of Rocklin Travel Policy attached hereto as Exhibit 1.
Section 3. The City Council hereby authorizes the City Manager or his/her designee to administer the Travel Policy.
PASSED AND ADOPTED this 25th day of June, 2024, by the following vote:
AYES: Councilmembers:
NOES: Councilmembers:
ABSENT: Councilmembers:
ABSTAIN: Councilmembers:
ATTEST:
Greg Janda, Mayor
Avinta Singh, City Clerk
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City of Rocklin
Travel Policy
SECTION 1 - Summary of the Employee Travel and Expense Policy
1.0 SCOPE: This Administrative Policy (Policy) applies to all City of Rocklin (City) employees, including full-time employees, part-time and temporary (seasonal) employees; City Officials, including City Council members, Board members, Commission members, and Committee members (hereafter referred to as “Travelers”) who travel on official business for the City.
1.1 Independent contractors, employees of independent contractors, and/or consultants are not covered under this Policy as they are governed by the contractual agreement between their organization and the City.
1.2 PURPOSE: This Policy aims to establish business travel guidelines for Travelers that are fair, accountable, and transparent. This Policy also satisfies Government Code 53232.2, which requires the governing body to adopt a written policy, in a public meeting, specifying the types of occurrences that qualify a member of the legislative body to receive reimbursement of expenses relating to travel, meals, lodging, and other actual and necessary expenses. Lastly, this Policy is not intended to and does not govern the allocation of any particular expense to any City department budget or other budget line item.
1.3 POLICY: It is in the City's best interest for Travelers to remain informed and trained in activities, developments, and professional trends affecting their ability to provide high- quality external and internal customer service. As such, attendance at training seminars, hearings, meetings, conferences, or other authorized gatherings is of value to the City and its residents.
SECTION 2 - General Guidelines
2.0 This Policy establishes the basic guidelines and procedures for travel on City business by all Travelers. Travelers who travel on City business as well as their respective supervisors are responsible for knowing and following this Policy.
2.1 Unless specifically stated otherwise, throughout this Policy, the term department director shall include department directors and City Manager shall include the City Manager.
2.2 Non-local travel should be on an as-needed basis. Travelers shall work with their supervisors to determine if a local venue or webinar will have the same or similar event within a reasonable time frame before scheduling non-local travel. 153
City of Rocklin
Travel Policy
2.3 Travelers are responsible for exercising good judgment when requesting, arranging, and making a trip. Good judgment includes the following:
Being fiscally responsible when spending City funds on travel and related activities.
Travel should be thoroughly planned well in advance of the trip. Personal business shall not be mixed with official business if it will cost the City in dollars or lost time, or if it will harm the City’s interest in any way.
2.4 Whenever possible, a City purchase card should be used for travel costs, including registration, airfare, hotel, and rental car. A City purchase card should not be used for items that will be covered by per diem or mileage reimbursement (see City of Rocklin Purchase Card Program Policy and Procedures).
2.5 The City prefers to reimburse the Traveler’s actual and necessary costs after travel, rather than provide the Traveler funds in advance of travel or expense. However, the City will, on a case-by-case basis, provide a per diem advance upon request at the discretion of the department director and Director of Administrative Services or designee(s).
2.6 The Internal Revenue Service (IRS) requires that if the expenditures are not substantiated with the above information, they may be considered “wages” subject to payroll tax withholding.
2.7 Records of City expenditures for approved travel under this Policy are public records subject to disclosure to the extent required under the Public Records Act or other applicable law.
2.8 Pursuant to Government Code Section 53232.4, the use of public resources or falsifying expense reports in violation of this Policy may result in any or all of the following:
2.8.1 Loss of reimbursement privileges.
2.8.2 A demand for restitution to the City.
2.8.3 Civil penalties pursuant to Government Code Section 8314.
2.8.4 Prosecution, pursuant to Section 424 of the Penal Code.
2.8.5 The City may report the expenses as income to the individual who incurred the expense to the state and federal tax authorities.
SECTION 3 - Procedures
3.0 Requests for reimbursements of travel-related expenses are submitted on a travel reimbursement form provided by the Department of Administrative Services-Finance Division. This form must be accompanied by supporting documentation.
3.1 A travel request should be submitted to the respective department director as far in advance of travel as reasonably possible, with 15 days prior being adequate. Any exceptions to adequate advance notice need to be justified and approved by the Traveler’s department director. It is the department director’s responsibility to ensure the following:
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City of Rocklin
Travel Policy
3.1.1 The purpose cannot be accomplished by mail, telephone, or internet;
3.1.2 The training, seminar, meeting, or conference is mandatory, reimbursable, or otherwise necessary to accomplish key City goals and objectives and is unavailable locally if overnight accommodations are required;
3.1.3 An appropriate number of Travelers are attending;
3.1.4 The itinerary ensures the accomplishment of the purpose at the lowest reasonable cost;
3.1.5 The Traveler understands and follows this Policy; and
3.1.6 There is adequate money in the appropriated travel budget to cover all costs associated with the trip.
3.2 For procedures on when the Traveler requests a direct vendor payment check, use of a City purchase card, or a cash advance, see Section 6 - Payment.
3.3 When the Traveler returns, a final accounting of all expenses should be approved by the appropriate department director or deputy director and submitted to the Finance Division within thirty (30) working days after completion of travel. The inability to provide such documentation in a timely fashion may result in the expense being borne by the individual who incurred the expense.
Expenses claims from the previous fiscal year(s) shall not be received unless compliant with Section 3.3.
3.4 As part of the final accounting, Travelers should attach all itemized receipts for miscellaneous expenses before routing to the appropriate department director or deputy director for review and approval.
3.5 Any purchase card charges (non-meal, miscellaneous expenses) that were incurred by the Traveler during business shall also be included. Using a City-issued purchase card to pay expenditures does not preclude the requirement to complete and submit an expense report.
3.6 Each City Official member shall briefly report (verbally or in writing) on any meetings or events attended at the City’s expense. Such report shall be provided at the next regularly scheduled City Council or Commission/Committee/Board meeting following the event or meeting attended. If multiple officials attended, a joint report may be made.
SECTION 4 - Department Specific Forms
4.0 If the Traveler’s department utilizes a specific form to authorize travel, the Traveler shall continue to fill out those forms in addition to the form required by the Administrative Services Department.
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City of Rocklin
Travel Policy
SECTION 5 - Travel Approval
5.0 The Administrative Services Department staff shall receive the travel request and review it against all applicable City policies prior to final authorization.
5.1 Travel more than 150 miles outside of California from City Hall shall be approved in writing by the City Manager (not a designee).
5.2 Travel outside of the United States shall be approved by the City Council.
5.3 City Officials shall receive prior approval by the City Council during a public meeting for the following:
5.3.1 Any expenditures that are not described in Section 7 – Authorized Travel.
5.3.2 Any questions regarding the propriety of a particular type of expense before the expense is incurred.
5.3.3 International travel and related expenses.
SECTION 6 - Payment
6.0 The City will pay all approved expenses for the Traveler’s trip. These expenses include transportation, lodging, registration fees, meals (if per diem is not taken), and any other related expenses if they are for official business and fit within this Policy.
6.1 There are four ways to pay for travel expenses:
1. Direct vendor payment by check in advance via purchase order.
2. Use of a City-issued purchase card (limited to miscellaneous expenses).
3. Payment by Traveler to be claimed for reimbursement.
4. An advance.
6.2 Direct vendor payments are made by the City to an organization to pay for specific costs related to a trip – usually registration fees, lodging, and airfare – and are the best method of payment. Reimbursement for out-of-pocket expenditures is processed after travel is completed. Advances are provided to Travelers before travel and may be provided upon request per Section 14 – Cash Advances. If the Traveler fails to reconcile expenses upon their return, they shall forfeit the ability to receive future advances. Purchase credit cards are issued and used according to the Purchase Card Policy.
SECTION 7 - Authorized Travel
7.0 Expenses incurred by Travelers while engaging and/or participating in the following activities and/or events may constitute authorized and reimbursable expenses (as long as other requirements of this Policy are also met):
7.0.1 The seminar, meeting, or conference is mandatory, reimbursable, or otherwise necessary to accomplish key City or employee’s professional goals 156
City of Rocklin
Travel Policy