Agenda packet — Santa Ana City Council, June 6, 2023 (part 6 of 10)

and one of the first, if not the first, public agency in California and/or United States to offer such a benefit.

Other key terms of the agreement include: updated discipline and grievance processes; acting pay language; constructive receipt language; bilingual pay recertification every three (3) years (for employees who receive bilingual pay); reducing the number of unused sick leave hours that may be converted to CalPERS service credit to eighty (80) for current employees and eliminating the option to convert unused sick leave hours to CalPERS service credit for future employees; modifying the maximum amount of sick leave that may be converted to employees’ retirement health savings or 457 deferred compensation accounts from one thousand two hundred (1,200) hours to two thousand (2,000) hours; new employees hired after City Council approval of the MOU will accrue a maximum of three hundred fifty-two (352) sick leave hours with any accrued hours over the maximum cashed out into employees’ retirement health savings accounts in January each year; increasing management vacation accrual from sixty-five (65) hours to eighty (80) hours per year; modifying the number of management vacation hours that can be cashed out from forty (40) to eighty (80); and clarifying language on issues of employment.

Lastly, pursuant to Resolution No. 2021-026, there are unrepresented classifications that mirror the salary increases and terms and conditions of employment of SAMA. The attached Resolution merely updates the respective salary schedule of the unrepresented classifications as a result of the salary increases provided to SAMA.

ENVIRONMENTAL IMPACT
There is no environmental impact associated with this action.

FISCAL IMPACT
The estimated annual cost of the agreement during the three (3) year period is $293,917 for FY 2022-23, $1,047,333 for FY 2023-24, and $1,456,521 for FY 2024-25, for a total estimated cost of $2,797,770. The estimated annual cost for the associated unrepresented classifications during the three (3) year period is $38,399 for FY 2022-23, $127,672 for FY 2023-24, and $180,264 for FY 2024-25 for a total estimated cost of $346,336. Approximately 64% is paid by the General Fund.

The FY 22-23 budget includes sufficient funding for the first-year cost of the agreement.

The proposed FY23-24 budget includes an allocation of $676,819 for SAMA negotiations.

If the City Council adopts this MOU, the FY23-24 budget will be short $498,186 ($1,175,005 estimated cost, less $676,819 allocated); and staff will need to develop a recommendation to address the shortfall in a future quarterly budget report.

City Council 43 – 2 6/6/2023
Memorandum of Understanding between the City of Santa Ana and the Santa Ana Management Association and Resolution for Associated Unrepresented Classifications June 6, 2023

Page 3 ends

EXHIBIT(S)

1. Memorandum of Understanding between the City of Santa Ana and the Santa Ana Management Association

2. Resolution for associated unrepresented classifications Submitted By: Jason Motsick, Executive Director of Human Resources Approved By: Kristine Ridge, City Manager
City Council 43 – 3 6/6/2023

MEMORANDUM
OF

UNDERSTANDING

BETWEEN

CITY OF SANTA ANA
AND

SANTA ANA MANAGEMENT ASSOCIATION
July 1, 2022 – June 30, 2025
SANTA ANA MANAGEMENT ASSOCIATION (SAMA) MOU: 2022-2025 1 City Council 43 – 4 6/6/2023

MEMORANDUM OF UNDERSTANDING

BETWEEN THE CITY OF SANTA ANA AND

THE SANTA ANA MANAGEMENT ASSOCIATION
FOR FISCAL YEARS 2022-2025

TABLE OF CONTENTS
ARTICLE I ..................................................................................................................................... 4

1.0 RECOGNITION ................................................................................................................... 4 ARTICLE II.................................................................................................................................... 5

2.0 PURPOSE AND INTENT.................................................................................................... 5 ARTICLE III................................................................................................................................... 6

3.0 IMPLEMENTATION........................................................................................................... 6 ARTICLE IV .................................................................................................................................. 7

4.0 ATTENDANCE, WORKDAY, WORKWEEK, & WORK SCHEDULE........................... 7 ARTICLE V.................................................................................................................................... 9

5.0 SALARIES ........................................................................................................................... 9 ARTICLE VI ................................................................................................................................ 18

6.0 ADDITIONAL COMPENSATION ................................................................................... 18 ARTICLE VII............................................................................................................................... 20

7.0 OVERTIME PAY............................................................................................................... 20 ARTICLE VIII.............................................................................................................................. 21

8.0 HOLIDAYS........................................................................................................................ 21 ARTICLE IX ................................................................................................................................ 24

9.0 VACATION........................................................................................................................ 24 ARTICLE X.................................................................................................................................. 29

10.0 OTHER LEAVES OF ABSENCE.................................................................................... 29 ARTICLE XI ................................................................................................................................ 39

11.0 EMPLOYEE INSURANCE ............................................................................................. 39 ARTICLE XII............................................................................................................................... 43

12.0 WELLNESS AND FITNESS REIMBURSEMENT PROGRAM ................................... 43 ARTICLE XIII.............................................................................................................................. 44

13.0 RETIREMENT ................................................................................................................. 44 ARTICLE XIV.............................................................................................................................. 47

14.0 TRAINING & EDUCATIONAL ASSISTANCE PROGRAM ....................................... 47 SANTA ANA MANAGEMENT ASSOCIATION (SAMA) MOU: 2022-2025 2 City Council 43 – 5 6/6/2023
ARTICLE XV............................................................................................................................... 50

15.0 ELECTRONIC DEVICE STIPEND................................................................................. 50 ARTICLE XVI.............................................................................................................................. 51

16.0 STRIKES AND WORK STOPPAGES............................................................................ 51 ARTICLE XVII ............................................................................................................................ 52

17.0 SOLE & ENTIRE MOU................................................................................................... 52 ARTICLE XVIII........................................................................................................................... 53

18.0 SEPARABILITY PROVISION........................................................................................ 53 ARTICLE XIX.............................................................................................................................. 54

19.0 DISCIPLINE..................................................................................................................... 54 ARTICLE XX............................................................................................................................... 57

20.0 GRIEVANCE REVIEW PROCEDURE.......................................................................... 57 ARTICLE XXI.............................................................................................................................. 61

21.0 WAIVER OF BARGAINING DURING THE TERM OF THIS MOU .......................... 61 ARTICLE XXII ............................................................................................................................ 62

22.0 EMERGENCY WAIVER PROVISION .......................................................................... 62 ARTICLE XXIII........................................................................................................................... 63

23.0 TERM ............................................................................................................................... 63 ARTICLE XXIV........................................................................................................................... 64

24.0 NON-DISCRIMINATION ............................................................................................... 64 ARTICLE XXV............................................................................................................................ 65

25.0 RATIFICATION & EXECUTION................................................................................... 65 EXHIBIT A................................................................................................................................... 67 EXHIBIT B................................................................................................................................... 71 SANTA ANA MANAGEMENT ASSOCIATION (SAMA) MOU: 2022-2025 3 City Council 43 – 6 6/6/2023

ARTICLE I

1.0 RECOGNITION

1.1 Pursuant to the Employee Relations Resolution of the City of Santa Ana (Resolution Number 81-75) and applicable State law, the City of Santa Ana (hereinafter called “the City”) certified the Santa Ana Management Association (herein after called “SAMA” or the “Union”) on September 25, 2002, as the majority of the Middle Management and Administrative Management Representation Unit (hereinafter called the "Unit") previously found appropriate by the Employee Relations Officer. The City hereby recognizes SAMA as the certified majority representative of the full-time employees in said Unit. The term "employee" or "employees" as used herein shall refer only to full-time employees employed by the City in said Unit in the employee classifications comprising said Unit as listed in the attachments shown as listed “Exhibit A & B,” as well as such classifications as may be added hereafter by the employee designated as the employee relations officer pursuant to Resolution No. 81-75.

SANTA ANA MANAGEMENT ASSOCIATION (SAMA) MOU: 2022-2025 4 City Council 43 – 7 6/6/2023

ARTICLE II

2.0 PURPOSE AND INTENT

2.1 2.2
It is the purpose of this Memorandum of Understanding (hereinafter referred to as MOU) to promote and provide for harmonious relations, cooperation and understanding between the City and employees covered by this MOU. It sets forth the full and entire understanding reached in good faith negotiations regarding the wages, hours, terms and conditions of employment of employees covered by this MOU.

Notwithstanding the following provisions of this MOU, the parties agree that they have intended nothing herein to entitle, alter, or award Civil Service rights or privileges to any employee represented by SAMA who is in the Excepted Service of the City.

SANTA ANA MANAGEMENT ASSOCIATION (SAMA) MOU: 2022-2025 5 City Council 43 – 8 6/6/2023

ARTICLE III

3.0 IMPLEMENTATION

3.1 This MOU constitutes a recommendation jointly submitted to the City Council of the City of Santa Ana. The parties agree that this MOU shall not be binding upon the parties until said City Council:

Acts, by majority vote, formally to approve said MOU and, Acts to appropriate the necessary funds required to implement the provisions of this MOU that require funding.

3.2 Implementation shall be effective as of the date the MOU is both approved by the City Council and the funding has been appropriated pursuant to Section 3.1. If the parties fail to agree to implement provisions of this MOU not requiring City Council approval, then negotiations shall resume upon the request of either party.

SANTA ANA MANAGEMENT ASSOCIATION (SAMA) MOU: 2022-2025 6 City Council 43 – 9 6/6/2023

ARTICLE IV

4.0 ATTENDANCE, WORKDAY, WORKWEEK, & WORK SCHEDULE

4.1 4.2
Attendance. All employees covered by this MOU shall be in attendance at their assigned worksite during hours prescribed by the City Manager or Executive Director they report to, or designee(s) and shall not absent themselves during prescribed hours without authorization. Employees shall not be required to submit Leave of Absence Requests for absences of two (2) hours or less.

Hours of Work. Eight (8) hours of work shall constitute a normal day and forty (40) hours of work shall constitute a minimum workweek, except for employees for whom special regulations have been approved by the City Manager.

B.
4/10 Work Schedule. The Executive Director, with the approval of the City Manager, may assign employees to a workweek consisting of four (4) ten (10) hour days with an additional one-half (1/2) or one (1) hour for unpaid lunch periods. The regular workweek shall consist of forty (40) hours. A regular day off shall consist of ten (10) hours.
9/80 Work Schedule. All employees shall be permitted to work a 9/80 work schedule when authorized by the Executive Director and approved by the City Manager. An employee will not be permitted to work this schedule if in the discretion of the Executive Director and City Manager, the 9/80 work schedule may reduce service to the public.

1. 9/80 Work Schedule Defined. The 9/80 work schedule shall be defined as working eighty (80) hours over nine (9) days in a two (2) week period. An employee shall work eight (8) days for nine (9) hours per day and one (1) day for eight (8) hours, excluding a one (1) hour lunch break during each work shift, totaling forty (40) working hours in each work week. a. The Work Week Period. The forty (40) hour work week period shall be defined as the work period starting from Friday at mid-shift to Friday at mid-shift. No employee working the 9/80 work schedule will be able to flex their Friday start time nor the time they take their lunch break, which will occur in the middle of the day on Fridays. b. The 9/80 Work Period. The 9/80 two (2) week work period for employees starts Friday mid-shift and continues for fourteen (14) days until Friday mid-shift. During this period, each week is made SANTA ANA MANAGEMENT ASSOCIATION (SAMA) MOU: 2022-2025 7 City Council 43 – 10 6/6/2023
up of four (4) nine-hour work days (thirty-six (36) hours) and one four (4) hour Friday and those hours equal forty (40) work hours in each work week (e.g., the Friday is split into four (4) hours for the first shift, which is charged to work week one and four (4) hours for the second shift, which is charged to work week two).
c. Employees cannot change schedules without prior approval of their Executive Director. The purpose of this authorization is to review the impact on supervision, staffing, and workload. Employees may change schedules at the beginning of any work period with approval of their Executive Director.
d.
e.

Modifications of the 9/80 work week period are not permitted unless authorized by the Executive Director of Human Resources and the City Manager.

Emergencies: All employees on the 9/80 work schedule are subject to be called to work any time to meet any and all emergencies or unusual conditions that, in the opinion of the City Manager, Executive Director or designee, may require such service from any of said employees.

2. Leave Benefits. When an employee is off on a scheduled workday under the 9/80 work schedule, then nine (9) hours of eligible leave per workday shall be charged against the employee’s leave balance or eight (8) hours shall be charged if the day off is a Friday. All leaves shall continue under the current accrual, eligibility, request, and approval requirements.

4.3 It is intent of the parties that no additional paid time off shall be gained or lost as a result of implementing any alternate work schedules. The City and SAMA agree to meet and confer to discuss abandoning any work schedule and implementing an alternate work schedule if the current schedule has not achieved the desired results.

SANTA ANA MANAGEMENT ASSOCIATION (SAMA) MOU: 2022-2025 8 City Council 43 – 11 6/6/2023

ARTICLE V

5.0 SALARIES

5.1 5.2
Basic Compensation Plan. There is hereby established a basic compensation plan for all full-time personnel who are now employed or will in the future be employed in any of the designated classifications of employment represented by SAMA as listed in this MOU and its attachments.

Schedule of Salaries
A. There are two (2) separate salary schedules, one for classifications of employment designated as Middle Management (MM) assigned to a seventeen (17) step monthly salary range, and one for classifications of employment designated as Administrative Management (AM) assigned to a five (5) step monthly salary range.

The assignment of classifications to salary schedules for Middle Management (MM) and Administrative Management (AM) is listed in Exhibits A and B of this MOU.

B. The basic salary schedule for Middle Management classifications contains numerous salary rate ranges, each range comprised of seventeen (17) separate rates of pay shown in monthly amounts. The respective rate ranges are identified by a two (2) digit number preceded by the capital letters “MM.” The separate rates of pay or steps within each salary rate range are identified by the numbers “1” through “17” inclusive, with Step “1” being the lowest or minimum rate of the range, Step “9” the middle or midpoint rate of the range, and Step “17” being the highest or maximum rate. The purpose of each step and criteria for advancement are set forth in Section 5.8(A).

The basic salary schedule for Administrative Management contains salary rate ranges comprised of five (5) steps or rates of pay shown in monthly amounts, identified by the letters “A” through “E” inclusive, with Step “A” being the lowest step in the range. The purpose of each step and criteria for advancement to the next higher step within a particular salary rate range are set forth in Section 5.8(B).

During the term of this MOU, it is the City’s intent to move from twenty four (24) to twenty six (26) pay periods. The parties acknowledge and agree that a change in the number of pay periods is a meet and confer issue. Once the City is ready to move forward, it will provide its proposal to the Union and the parties agree to SANTA ANA MANAGEMENT ASSOCIATION (SAMA) MOU: 2022-2025 9 City Council 43 – 12 6/6/2023
promptly meet and confer on the issue. The parties acknowledge that such a change will require modification to language in several provisions of this MOU.

5.3 Salaries
A.

Effective July 1, 2022, classifications represented by this MOU shall receive a base salary increase of three percent (3%).

Effective the first full pay period after July 1, 2023, classifications represented by this MOU shall receive a base salary increase of three percent (3%).

Effective the first full pay period after July 1, 2024, classifications represented by this MOU shall receive a base salary increase of three percent (3%).

5.4 5.5
Application of Basic Compensation Plan. All employees working in classifications of employment covered by this MOU shall be compensated at a monthly rate, as set forth in Exhibits A and B.

Probation. Except for employees in the Excepted Service as defined by the City Charter, the probationary period shall be one (1) year from the date of appointment from an open eligible list (new hire), a reappointment eligible list (rehire), or appointment from a promotional eligible list.

5.6 Beginning Rates
A. Middle Management Classifications. An employee appointed to a Middle Management classification shall be compensated at any rate within the lower third of the 17 step salary rate range (Steps “1” through “6”) for their job classification as authorized by the Appointing Authority. When economic conditions, unusual employment conditions, or exceptional qualifications of a candidate for employment indicate a higher rate would be in the City’s best interest, the City Manager may authorize hiring at a higher rate in the salary rate range but this higher rate generally shall not be above the midpoint (Step “9”).

B. Administrative Management Classifications. An employee appointed to an Administrative Management classification may be placed by the Appointing Authority at any step within the applicable five (5) step salary rate range (Steps “A” through “E”) in the schedule to which the classification has been assigned, provided that such employee shall be assigned such salary step upon the commencement of their service in said classification and such assignment having once been made shall SANTA ANA MANAGEMENT ASSOCIATION (SAMA) MOU: 2022-2025 10 City Council 43 – 13 6/6/2023
remain in effect until the said employee shall be entitled to advance to the next salary step in accordance with the further provisions of this Article.

5.7 Service. The word “service” as used in this MOU shall be deemed to mean continuous, full-time service in the classification in which the employee is being considered for salary advancement, service in the higher classification or service in a classification allocated to the same salary rate range and having generally similar duties and requirements.

Notwithstanding the above, employees in classifications represented by SAMA who are hired after the first (1st) working day of the month shall not be credited with time in service for that month when determining the length of service for salary advancement.

A lapse of service by an employee for a period of time longer than ten (10) calendar days, by reason of resignation, quit, or discharge, shall serve to eliminate the accumulated length of service time of such employee for the purpose of this MOU, and any such employee reentering the service of the City shall be considered as a new employee, except that they may be reappointed as provided in Santa Ana Municipal Code (SAMC) Section 9-114 and may be placed in the same salary step in the appropriate salary rate range as they were at the time of termination of employment.

5.8 Advancement Within Ranges
A. Middle Management Classes: The following provisions shall govern salary advancement within rate ranges for employees employed in SAMA Middle Management classes:

1. Steps “1” through “15” Advancement: For any employee in a Middle Management classification covered by this MOU who has been initially appointed to a step lower than Step “15”, advancement in the Middle Management schedule of salary rate ranges may be granted only for continued meritorious and efficient service by said employee in the effective performance of the duties of their position. Such advancement shall be in two (2) step increments, each step being equivalent to two and one-half percent (2.5%), for a total increase of five percent (5%) per year, until Step “15” is achieved. For example, an employee shall advance from Step 1 to Step 3, Step 3 to Step 5, Step 5 to Step 7, Step 7 to Step 9, Step 9 to Step 11, Step 11 to Step 13, or Step 13 to Step 15. The effective date of such merit step increase, if granted, shall be the first (1st) day of the month following the completion of one (1) year of service at the step from which said employee is being advanced. Effective the first full pay period SANTA ANA MANAGEMENT ASSOCIATION (SAMA) MOU: 2022-2025 11 City Council 43 – 14 6/6/2023
following City Council approval of this 2022-2025 MOU, the effective date of such merit step increase, if granted, shall be the first (1st) day of the pay period following completion of one (1) year of service at the step from which said employee is being advanced.

2. Advancement to Steps “16” and “17”: Any employee in a Middle Management classification covered by this MOU, who has reached Step “15” or Step “16” in the Middle Management schedule of salary rate ranges, may advance to the next higher step in the Middle Management schedule of salary rate ranges only for continued meritorious and efficient service by said employee in the effective performance of the duties of their position.

Such advancement shall be in one-step increments, each step being equivalent to two and one-half percent (2.5%) per year until Step “17” is achieved. For example, an employee covered by this MOU shall advance from Step “15” to Step “16”, and Step “16” to Step “17”, respectively.

3. A Middle Management employee who previously advanced through the steps of each salary rate range using their initial date of hire into a middle management class shall retain that date as the anniversary date for purposes of advancing through the steps of each salary rate range while in their current class and for any subsequent promotions to a Middle Management class. The effective date of such merit step increase, if granted, shall be the first (1st) day of the month following the anniversary date. Effective the first full pay period following City Council approval of this 2022-2025 MOU, the effective date of such merit step increase, if granted shall be the first full pay period following the anniversary date.

Such merit advancement shall require the following:
a. There shall be on file in the office of the Executive Director of Human Resources a copy of each periodic performance appraisal required to be made on the employee by the Civil Service Rules and Regulations and/or the City Manager during the period of service time of such employee subsequent to their last salary advancement. b. The Appointing Authority, at least twenty (20) calendar days prior to the anticipated completion of such employee’s required length of service, shall file with the City Manager or their designee a statement recommending the granting or denial of the merit increase and supporting such a recommendation with specific reasons SANTA ANA MANAGEMENT ASSOCIATION (SAMA) MOU: 2022-2025 12 City Council 43 – 15 6/6/2023
therefore. The employee shall be notified by the Appointing Authority as to such recommendations and shall be informed of the reasons.
c.
d.

No advancement in salary shall become effective until approved by the City Manager or their designee, except when placement on a salary step above Step “1” results from promotion under the provisions of Section 5.9(A).

Notwithstanding the foregoing provisions of this subsection to the contrary, a merit step advance shall be automatically granted ninety (90) days after the due date if no performance appraisal is completed. The effective date of such merit step advancement shall be retroactive to the first (1st) day of the month following the completion of the required length of service. Effective the first full pay period following City Council approval of this 2022-2025 MOU, the effective date of such merit step advancement shall be retroactive to the first full pay period following the completion of the required length of service.

4. When an employee in a Middle Management classification has not been approved for advancement to the next higher salary step, they may be reconsidered for such advancement after the completion of three (3) months of additional continued service in the classification and shall be reconsidered for advancement to the next higher step above their then current step after the completion of six (6) months of additional continued service in the classification.

5. An employee in a Middle Management classification who is being paid at any salary step above Step “1” may be reduced to the next lower step in the appropriate salary rate range upon the recommendation of the Appointing Authority and the approval of the City Manager or their designee.

Procedure for such reduction shall follow the same procedure for merit advancement in Subsection 5.8(A)(4), and such employee may be considered for readvancement under the same provisions as contained in Subsection 5.8 (A)(4).

B. Administrative Management Classifications: The following conditions shall govern salary advancement within five (5) step rate ranges for employees employed in Administrative Management classifications:

SANTA ANA MANAGEMENT ASSOCIATION (SAMA) MOU: 2022-2025 13 City Council 43 – 16 6/6/2023

1. For an employee in an Administrative Management classification covered by this MOU who has been initially appointed to a step lower than Step “E,” advancement to the next higher step (Step “B” from Step “A” or Step “C” from Step “B,” etc.) may be granted only for continued meritorious and efficient service by said employee in the effective performance of the duties of their position. The effective date of such merit step increase, if granted, shall be the first (1st) day of the month following the completion of one (1) year of service at the step from which said employee is being advanced.

Effective the first full pay period following City Council approval of this MOU, the effective date of such merit step increase, if granted, shall be the first (1st) day of the pay period following completion of one (1) year of service at the step from which said employee is being advanced.

Such merit advancement shall require the following:
a. There shall be on file in the Office of the Executive Director of Human Resources a copy of each periodic performance appraisal required to be made on the employee by the Civil Service Rules and Regulations and/or the City Manager during the period of service time of such employee subsequent to their last salary advancement. b. The Appointing Authority, at least twenty (20) calendar days prior to the anticipated completion of such employee’s required length of service, shall file with the City Manager a statement recommending the granting or denial of the merit increase and supporting such a recommendation with specific reasons therefore. The employee shall be notified by the Appointing Authority as to such recommendations and shall be informed of the reasons.
c.
d.

No advancement in salary shall become effective until approved by the City Manager, except when placement on a salary step above Step “A” results from promotion under the provisions of Section

5.9(B).

Notwithstanding the foregoing provisions of this subsection to the contrary, a merit step increase shall be automatically granted ninety (90) days after the due date if no performance appraisal is completed. The effective date of such merit step increase shall be retroactive to the first (1st) day of the month following the SANTA ANA MANAGEMENT ASSOCIATION (SAMA) MOU: 2022-2025 14 City Council 43 – 17 6/6/2023
completion of the required length of service. Effective the first full pay period following City Council approval of this MOU, the effective date of such merit step increase shall be retroactive to the first full pay period following the completion of the required length of service.

2. When any such employee in a classification designated as Administrative Management (AM) has not been approved for advancement to the next higher salary step, they may be reconsidered for such advancement after the completion of three (3) months of additional service and shall be reconsidered for advancement to the next higher step above their then current step after the completion of six (6) months of additional service.

This reconsideration shall follow the same steps and shall be subject to the same actions as provided in Subsection 5.8(B)(1).

3. Any employee in an Administrative Management classification who is being paid at any salary step above “A” may be reduced to the next lower step in the appropriate salary rate range upon the recommendation of the Executive Director and the approval of the City Manager. Procedure for such reduction shall follow the same procedure for merit advancement provided in Subsection 5.8(B)(1), and such employee may be considered for re-advancement under the same provisions as contained in Subsection

5.8(B)(2).

5.9 Promotional Salary Advancement.

A. Middle Management Classifications: When an employee in a non-management classification of the City service is promoted to a Middle Management classification, they shall be placed at a salary rate in the appropriate salary rate range that will provide at least a five percent (5%) pay increase.

B. Administrative Management Classifications:

1. Promotion from a Non-Management Classification. An employee who is promoted to an Administrative Management classification from a nonmanagement classification of the City service shall be placed at a salary rate in the appropriate Administrative Management monthly salary rate range that provides a pay increase of at least five percent (5%).

SANTA ANA MANAGEMENT ASSOCIATION (SAMA) MOU: 2022-2025 15 City Council 43 – 18 6/6/2023

2. Promotional Salary Advancement. When an employee in a classification designated as Administrative Management (AM) is promoted to a higher classification from a position in a lower classification in the same occupational career ladder, they shall be reassigned to the beginning step in the appropriate monthly salary range for the higher classification; provided, however, that if the base salary currently being paid such employee is already equal to or higher than such beginning step, they shall be placed in the lowest step in the appropriate monthly salary rate range as will grant the employee a pay increase of at least five percent (5%) over their current base salary step exclusive of pay premiums such as bilingual pay, special skills, or the like.

5.10 Demotion.

A. Middle Management Classifications: When an employee in a Middle Management classification is demoted to a position in a lower classification, they shall be placed at a rate in the lower salary rate range which provides at least a five percent (5%) reduction in pay.

B. Administrative Management Classifications: When an employee in a Administrative Management Classification is demoted to a position in a lower classification, their salary rate shall be fixed in the appropriate salary rate range for the lower classification accordance with the following provisions:

1. 2.

3. The salary rate shall be reduced by five percent (5%).

The new salary rate must be within the appropriate salary rate range.

The new salary rate shall not be higher than the salary step to which the employee would have been entitled had their service time in the higher classification been spent in the lower classification.

5.11 Probationary Rejection. A promotional employee who is rejected during the probationary period from a SAMA classification shall be returned to the classification in which they held regular status and at their former salary step, unless the reasons for failure to complete probation would also be cause for dismissal from City service.

5.12 Reallocation of Salary Rate Ranges. An employee who is employed in a classification covered by this MOU which is reallocated to a different salary rate range from that previously assigned shall be retained in the same salary step in the new salary rate range as SANTA ANA MANAGEMENT ASSOCIATION (SAMA) MOU: 2022-2025 16 City Council 43 – 19 6/6/2023
they had previously held in the prior rate range and shall retain credit for length of service in such step towards advancement to the next higher step.

5.13 Acting Pay. Acting pay shall be defined as the temporary assignment of an employee to perform work of a job class (represented by SAMA) which is assigned to a higher salary schedule than their regular job class. An employee who is temporarily appointed by the Executive Director to serve in an acting capacity for two (2) weeks or more and who is responsible for the full range duties and responsibilities assigned to the higher level classification, shall receive a five percent (5%) increase or the minimum salary of the higher level classification (whichever is higher) for all time worked in the higher job classification.

A. Bargaining unit employees temporarily assigned to serve in an acting capacity of an Executive Management (Executive Director) classification for thirty (30) calendar days or more and who is responsible for the full range of duties and responsibilities assigned to the Executive Management position shall receive a ten percent (10%) increase or the minimum salary of the Executive Management classification (whichever is higher) for all time worked in the higher job classification.

B. An employee must be qualified (i.e. meet the minimum qualifications) for the higher position in order to be paid for acting pay. The determination of those persons qualified for work in higher rated classifications shall be established and determined by the Executive Director of Human Resources or designee. a. The Executive Director of Human Resources or designee’s determination is final and binding and shall not be appealable.

C. Non-permanent employees (probationary, seasonal, temporary, limited-term, etc.) shall not be eligible for acting pay.

D. Each assignment may be terminated at any time, but in no event shall such assignment continue beyond one hundred and eighty (180) calendar days or nine hundred and sixty (960) hours each fiscal year, whichever comes first.

SANTA ANA MANAGEMENT ASSOCIATION (SAMA) MOU: 2022-2025 17 City Council 43 – 20 6/6/2023

ARTICLE VI

6.0 ADDITIONAL COMPENSATION

6.1 Bilingual Pay. An employee whom the Executive Director or their designee assigns to a position requiring bilingual capability in both English and either Samoan, Spanish, Vietnamese, or other languages designated by the City Manager, will be paid a monthly premium in accordance with the criteria and amounts set forth below:

A. Certification by the Executive Director of Human Resources as having satisfactorily demonstrated conversational fluency in both languages for any position requiring bilingual capability.

B. Positions for which the Executive Director has determined that bilingual proficiency is essential to carry out duties and responsibilities of a critical and/or emergency nature without ready access to backup assistance, or positions where bilingual public contact is a major and essential element of the work being performed, will be designated as Primary Bilingual Assignments. A qualified incumbent of such position will be paid a monthly premium of one hundred seventy-five dollars ($175) above their then current base monthly salary step.

C. Positions where it has been determined by the Executive Director that regular and frequent bilingual usage is necessary to the performance of duties, but not a major, essential or integral element of the work, will be designated as Secondary Bilingual Assignments. A qualified incumbent of such position will be paid a monthly premium of forty dollars ($40) above their then current base monthly salary step.

The number of such Primary and/or Secondary Bilingual Assignment shall be no larger than the requirements of the department as determined by the Executive Director and the City Manager.

Employees who receive bilingual assignment pay at the time this 2022-2025 MOU is adopted by the City Council shall recertify their bilingual capability every three (3) years with the first recertification conducted beginning in July 2025. Employees who do not successfully pass required recertification examinations shall have their bilingual assignment pay removed. Unsuccessful employees may retake the required certification exam every three (3) months.

F. Employees who are initially certified for bilingual assignment pay after this 2022- 2025 MOU is adopted by the City Council shall recertify their bilingual capability every three (3) years after the date of initial certification. Employees who do not successfully pass required recertification examinations shall have their bilingual SANTA ANA MANAGEMENT ASSOCIATION (SAMA) MOU: 2022-2025 18 City Council 43 – 21 6/6/2023
assignment pay removed. Unsuccessful employees may retake the required certification exam every three (3) months.

6.2 All assignments to positions providing for bilingual pay as set forth in this Article shall be made or revoked at the sole discretion of the Executive Director.

SANTA ANA MANAGEMENT ASSOCIATION (SAMA) MOU: 2022-2025 19 City Council 43 – 22 6/6/2023

ARTICLE VII

7.0 OVERTIME PAY

7.1 Compensation for Overtime. Employees in any of the designated classifications of employment listed in this MOU are designated as exempt from the provisions of the Fair Labor Standards Act (“FLSA”) provided by Section 13(a)(1) of the FLSA as defined by Regulations, 29 CFR Part 541, are not eligible for monetary compensation for overtime work or for compensatory time off with pay for overtime work, unless so required by the FLSA, or any other State or Federal laws.

SANTA ANA MANAGEMENT ASSOCIATION (SAMA) MOU: 2022-2025 20 City Council 43 – 23 6/6/2023

ARTICLE VIII

8.0 HOLIDAYS

8.1 Employees shall receive the following days off during the calendar year as paid holidays:
 January 1 - New Year's Day
 Third (3rd) Monday in January - Martin Luther King's Birthday  Third (3rd) Monday in February - Presidents’ Day
 March 31 – Cesar Chavez Day (effective the first holiday after City Council approval of this 2022-2025 MOU)
 Last Monday in May - Memorial Day
 July 4 - Independence Day
 First (1st) Monday in September - Labor Day
 November 11 - Veteran's Day
 Fourth (4th) Thursday in November - Thanksgiving Day
 The Friday immediately following Thanksgiving Day
 Last working day before Christmas Day, unless Christmas Day falls on a Thursday, in which instance, the day following Christmas Day shall be observed in lieu thereof
 December 25 - Christmas Day
 One (1) nine (9) hour Floating Holiday. Any workday selected by the employee with prior permission of the employee's supervisor
 Every day proclaimed by the Mayor of the City as a holiday for City employees  Any holiday which falls on a Sunday will be observed on the following Monday.

Any holiday which falls on a Saturday will be observed on the Friday preceding the holiday.

8.2 Holidays – Employees on Alternate Work Schedules.

A. Full-time employees whose regular scheduled days off are other than Saturday and Sunday shall be entitled to receive twelve (12) working days off during the year in lieu of the holiday benefits specified in Section 8.1. Holidays will be credited based on the employee’s working schedule. If the holiday falls on a regular nine (9) hour day, then nine (9) holiday hours will be credited. If the holiday falls on the eight (8) hour working Friday then eight (8) hours of holiday pay will be credited, with the exception of floating holidays that will be granted at nine (9) hours regardless of work schedule.

B. Said substitute holidays may be scheduled by the Executive Director or their designee, normally during the same month that the holiday is observed by other City employees. An employee entitled to time off in lieu of holidays shall receive SANTA ANA MANAGEMENT ASSOCIATION (SAMA) MOU: 2022-2025 21 City Council 43 – 24 6/6/2023
that time off in proportions to their service at full pay in such capacity during the year.

8.3 Employees must actually work at least one (1) day preceding the day a holiday listed in Section 8.1, supra, actually occurs in order to receive credit for such holidays during the month in which it occurs.

An employee separating from the service of the City must actually work at least one (1) day following the day a holiday listed in Section 8.1, supra, actually occurs in order to receive compensation for the holiday.

A newly appointed employee must complete six (6) months of continuous full-time service in order to receive credit for the one (1) Floating Holiday listed in Section 8.1.

8.4 Holiday time off may be taken in increments of eight (8) hours by employees who work eight (8) hour days. Employees assigned to the 4/10 work schedule must use their holiday in ten (10) hour increments. Employees assigned to a 9/80 work schedule must use their holidays in nine (9) hour increments.

If a holiday falls on an employee’s alternating regularly scheduled day off, the employee must then take their holiday off before or after the regular holiday as their holiday off with supervisor and/or Executive Director approval. Such holiday time is referred to as an “impact holiday.” If the employee cannot take their holiday off before or after the regular scheduled holiday off, the employee will bank eight (8), nine (9), or ten (10) hours of holiday leave to be used at a later date with the supervisor’s approval.

8.5 8.6
Holiday benefits may not be carried over from one (1) calendar year to the next, with the exception of floating holidays earned as set forth in Section 8.7(C)(5).

Mandatory Holiday Closure.

Effective upon adoption of this MOU, City Hall and all other City departments (with the exception of the Police Department, Santa Ana Zoo, and select employees in Fleet Services Division) shall be closed for a mandatory winter holiday closure each year during the term of this MOU.

Dates of Closure
City Hall will be closed on the days between December 24 (except for years when December 24 falls on a Wednesday in which case City Hall will be closed starting on December 25) and January 1 each year. An employee regularly assigned to work on one or more days during this time period shall use accrued paid leave (as set SANTA ANA MANAGEMENT ASSOCIATION (SAMA) MOU: 2022-2025 22 City Council 43 – 25 6/6/2023
forth in Section 8.7(C)) for their regularly scheduled hours for each day they would otherwise have been scheduled to work.

During this time period, per Section 8.1 December 24 (except if it falls on a Wednesday in which case December 26 is the holiday), December 25, and January 1 (or the days these holidays are observed) are City holidays.

C. Additional Days Off During a Closure

1. Employees will need to choose from the options in this subsection to cover any additional regularly scheduled work days which are not City observed holidays.

2. Employees may use any of the following accrued leaves they have available to cover any additional day(s) off which may be required by the closure:
 Vacation
 Compensatory Time Off
 Impact Holiday Leave
 Floating Holiday

3. 4.

Employees are not permitted to use sick leave for a holiday closure day unless they produce a physician’s certification for each day reported as sick leave. This additional certification is not required for employees with approved advance sick leave usage due to FMLA/CFRA/PDL (or any other protected leave).

Employees shall have the option of not using paid leave for any, or all, holiday closure day(s) and taking the day(s) off as an absence without pay.

SANTA ANA MANAGEMENT ASSOCIATION (SAMA) MOU: 2022-2025 23 City Council 43 – 26 6/6/2023

ARTICLE IX

9.0 VACATION

9.1 9.2
Purpose. It is the policy of the City to grant employees vacation leave in order to provide them with a break in their regular work schedule and this purpose will be used as a guide in the administration of the provisions of this Article.

Vacation.

A. Employees shall accrue vacation with pay on a monthly basis as set forth in the following table.

Annual Monthly
Accrual
Rate
Vacation
Hours
Accrued
120
Beginning
Years
1 2
3 4
5 6
7 8
9 10.00

10.00 10.00

10.33 10.67

11.00 11.33

11.67 12.00

12.33 12.67

13.00 13.33

14.00 14.67

15.33 16.00
120
120
120
120
124
128
132
136
140
144
148
152
156
160
168
176
10 11
12 13
14 15
16 17
18 19
20 or
more
184
192
200 16.67
B.

No employee shall be entitled to, or receive payment for, any vacation until they have completed six (6) months of continuous service.

On or after the first (1st) day of the month following completion of six (6) months of continuous full-time service, an employee may be allowed to take all or a SANTA ANA MANAGEMENT ASSOCIATION (SAMA) MOU: 2022-2025 24 City Council 43 – 27 6/6/2023
proportionate fraction of their earned vacation, subject to scheduling approval of the employee’s supervisor.

Vacation time off may be taken in increments as small as one-half (1/2) hour, with fractional usage rounded upward to the next higher multiple of one-half (1/2).

The time at which an employee shall take their vacation shall be determined by the Department Head, with due regard for the wishes of the employee and particular regard for the needs of the City to provide basic services.

F. Computation of Vacation.

1. In computing vacation, each municipal holiday that occurs during the vacation, and that falls on a day which the employee would have worked had they not been on vacation, shall be deducted from the computation so that one (1) additional day of vacation shall be allowed to the employee unless departmental practice provides some other manner of compensating for municipal holidays. Should an employee suffer a sickness or injury while on authorized vacation, each full day of such sick leave, when confirmed by a physician’s statement and approved by the Executive Director, may be deducted from the computation of vacation expended and charged against the employee’s accumulated sick leave.

2. A period of earlier service does not apply toward the calculation of the completed years of service factor for vacation accrual when an employee has had a break in continuous service, unless the break in service is concluded by reappointment, as provided in Section 9-114 of the Civil Service Rules and Regulations, or by reemployment from layoff within one (1) year. Leave of absence without pay, as provided in Section 10.1(E) (Sick Leave - Extended), Section 10.7 (Authorized Absence Without Pay - Long Term) and Section 10.11 (Catastrophic Leave) herein, does not constitute a break in continuous service as used in this section; however, the leave of absence period shall not be applied toward the accumulation of vacation. Absence on military leave followed by reinstatement, as provided in Section 9-143 of the Civil Service Rules and Regulations, does not constitute a break in service, and the period of absence on such military leave shall be applied toward the accumulation of vacation.

SANTA ANA MANAGEMENT ASSOCIATION (SAMA) MOU: 2022-2025 25 City Council 43 – 28 6/6/2023

3. Vacation Buy-Back.
a. Through December 31, 2023

1. Employees are eligible to require the City to buy back up to eighty (80) hours of their banked vacation leave per fiscal year.

2. Employees are eligible to require the City to buy back up to forty (40) hours of their banked management vacation leave once each calendar year. Upon City Council approval of this 2022-2025 MOU, employees are eligible to require the City to buy back up to eighty (80) hours of their banked management vacation leave once each calendar year.
b. Effective January 1, 2024 and continuing every year thereafter

1. If an employee wants to cash-out unused vacation leave they accrued during the calendar year, they must make an irrevocable election by December 15th of the prior calendar year (i.e., by December 15, 2023 for a cash-out in calendar year 2024). The provisions of Section 9.2(F)(3)(b) shall also apply to
management vacation leave.

2. The irrevocable election must indicate the amount of vacation hours the employee intends to cash-out during the next calendar year.

The number of hours to be cashed-out cannot exceed the total number of hours the employee will accrue during that same calendar year, or a maximum of eighty (80) hours, whichever is the lesser amount.

3. Once the election form is submitted to Payroll, the amount of hours to be cashed-out cannot be changed for that calendar year.

4. Employees may submit a request for cash-out up to two (2) times per year for payment the pay period which includes July 1 and/or December 15.

5. In the event an employee’s vacation leave balance (on either pay period when they can elect to cash-out) is less than the amount of hours the employee had previously elected to cash-out (in the prior calendar year), the employee will only receive payment for SANTA ANA MANAGEMENT ASSOCIATION (SAMA) MOU: 2022-2025 26 City Council 43 – 29 6/6/2023
the amount of accumulated vacation leave remaining at the time of the cash-out in either July or December.

6. If an employee makes an irrevocable election to cash-out vacation in the following calendar year and uses vacation leave during that subsequent calendar year, the vacation leave used will first come from vacation leave the employee had earned (if any) prior to January 1st of the calendar year the employee had elected to cash-out. The use of such earned, but unused, vacation leave accumulated from previous calendar years shall not result in a reduction in the amount of vacation hours the employee is eligible to cash-out.

9.3 Vacation Carry Over
A. No employee may carry over from one (1) calendar year to the next, more than the maximum vacation carryover as set forth in the following table. Any vacation not used beyond the maximum carryover amount from year to year is forfeited, meaning that no pay shall be received for such unused vacation at any time. With respect to any vacation forfeited in this manner, this provision constitutes a waiver of any rights to vested vacation benefits under California Labor Code section 227.3.

Maximum Hours
of Vacation Carry
Completed
Years
Over
120
240
360
360
360
364
372
384
396
408
420
432
444
456
468
484
504
528
1 2
3 4
5 6
7 8
9 10
11 12
13 14
15 16
17 18
SANTA ANA MANAGEMENT ASSOCIATION (SAMA) MOU: 2022-2025 27 City Council 43 – 30 6/6/2023
19 20
21 22
23 552
576
592
600
600
600
600
24 25 or more

9.4 9.5
Effect of Extended Sick Leave on Vacation Accrual. Absence on sick leave for a period in excess of fifteen (15) consecutive calendar days, in any one (1) calendar month, shall not be considered as service time for vacation accrual purposes.

Management Vacation Benefit.

A. Employees covered by this MOU will be granted sixty-five (65) hours year of Management Vacation per calendar year.

1. Effective the first full pay period following City Council approval of this 2022-2024 MOU, the City shall deposit an additional fifteen (15) hours into each employee’s Management Vacation bank.

2. Effective January 1, 2024, employees will be granted eighty (80) hours of Management Vacation per calendar year.

Such management vacation is in addition to the vacation accrual table in Section

9.2(A), subject to a maximum accrual of thirty (30) days (two hundred forty (240) hours).

9.6 Management Vacation Pay Option.

A. Employees shall be given the option to receive cash compensation, computed on a straight time basis, in lieu of up to five (5) eight (8) hour working days of earned, unused Management Vacation benefits. Upon City Council approval of this 2022- 2025 MOU, employees may cash out Management Vacation leave up to a total of eighty (80) hours in accordance with the provisions in Section 9.2(F)(3).

SANTA ANA MANAGEMENT ASSOCIATION (SAMA) MOU: 2022-2025 28 City Council 43 – 31 6/6/2023

ARTICLE X

10.0 OTHER LEAVES OF ABSENCE

10.1 Sick Leave.

A. Definition. Except as otherwise provided below, sick leave shall be deemed to mean absence from duty of an employee because of illness, injury, medical, or dental appointment that prevents the employee from performing the duties of their position, and shall be deemed to include time in quarantine resulting from exposure to a contagious disease.

B. Accrual. Each employee shall be entitled to, and shall earn, one (1), eight (8) hour working day of sick leave for each full calendar month of service in which they are employed by the City with full pay; provided, however, any absence on sick leave for a period of time greater than fifteen (15) consecutive calendar days in any one (1) calendar month shall not be considered to be service entitling an employee to earn sick leave as aforesaid. Subject to the other provisions in this Article, sick leave shall accrue to the credit of each employee to the extent that it is not used.

C. Authorized Only When Necessary. Use of sick leave by City employees shall be authorized as follows:

1. Sick leave is not a right which an employee may use at their discretion, but shall be allowed only in cases of necessity and actual sickness or disability, or as authorized in Section 10.1(J).

2. When an accepted industrial illness or injury has caused an employee’s absence, for which benefits are required under the State Workers’ Compensation Insurance and Safety Act, paid sick leave will be allowed such employee during the first three (3) days of the statutory waiting period.

If the workers’ compensation related illness or injury continues past the initial three (3) consecutive days, the employee will have the three (3) used sick days recredited to their account, if the employee remains off work longer than fourteen (14) days. Paid sick leave will continue until the fourth (4th) day when the City pays the employee workers’ compensation benefits for such illness or injury. If the employee does not have sufficient accumulated sick leave at the commencement of such industrial illness or injury, they will be advanced sick leave for this purpose. Subsequently, the City will deduct an equal amount previously advanced from any sick leave accrued by the employee until the total amount is recovered. If the employee terminates before recovery of all advanced sick leave, the City SANTA ANA MANAGEMENT ASSOCIATION (SAMA) MOU: 2022-2025 29 City Council 43 – 32 6/6/2023
will deduct the unrecovered cost of sick leave from such terminated employee’s final paycheck, to the extent possible.

The City may authorize employees to use sick leave or vacation time for approved workers’ compensation medical appointments as specified herein.

The City may authorize use of such leave for City approved medical appointments whenever such appointments cannot be secured outside the employee’s regular workday, and salary continuation or workers’ compensation benefits are not available.

D. Limit.

For all employees in the bargaining unit or who are currently employed by the City in a full-time position at the time of City Council approval of this 2022-2025 MOU, the maximum total accumulation of sick leave with pay shall be two hundred fifty (250) eight (8) hour working days equal to two thousand (2,000) hours.

For employees hired as new employees from outside the City into this bargaining unit on or after the date of City Council approval of this 2022-2025 MOU, the maximum amount of sick leave they may carry over into a calendar year is three hundred and fifty-two (352) hours.

Any sick leave accrual above three hundred and fifty-two (352) hours (up to ninetysix (96) hours) will be converted into an employee’s Retirement Health Savings (“RHS”) Plan account during the first full pay period in January of each year.

Sick leave usage of less than a full day shall be charged in minimum increments of one-half (1/2) hour, with fractional usage rounded upward to the next higher multiple of one-half (1/2) hour.

E. Extended. The City Manager may grant leave up to six (6) months without pay to an employee who has exhausted all of their accrued sick leave if a licensed physician designated by the City Manager indicates that the employee will be sufficiently recovered to return to their employment within a six (6) month period.

Prior to the expiration of the additional time, the employee may return to their position provided that the employee has a certificate from the designated physician stating that the employee is able to perform all the duties of their position without qualification. In addition to the above, the City Manager may grant a further extension not to exceed a total of one (1) year without pay.

F. Extension by Use of Vacation. After an employee’s sick leave has been exhausted, they may be granted permission to take any unused vacation leave benefits they may have accrued.

SANTA ANA MANAGEMENT ASSOCIATION (SAMA) MOU: 2022-2025 30 City Council 43 – 33 6/6/2023
G. Notice. The employee taking sick leave shall notify their immediate supervisor either prior to or within four (4) hours after the time they are scheduled to report for duty, or as otherwise established by departmental regulations. When the absence is more than three (3) consecutive working days, the employee must present to their Executive Director a physician’s certificate stating the cause of illness and that, in the physician’s opinion, the employee could not report to work because of such illness or injury and that the employee is sufficiently recovered to safely return to work. Such certificate shall be transmitted to the Executive Director of Human Resources with the report of the employee’s return to work.

A physician’s certificate or other satisfactory written evidence of actual illness or injury may be required after an absence of any duration less than three (3) days.

H. Denial. No employee shall be entitled to sick leave with pay while absent from duty because of sickness or injury purposely self-inflicted or caused by willful misconduct, or sickness or disability sustained while engaged in employment other than employment by the City, for monetary gain or other compensation, or by reason of engaging in business or activity for monetary gain or other compensation.

Excess Usage. If sick leave is used in excess of that due and available an employee, such excess sick leave will, first, be deducted from any available vacation leave benefit; second, from the next scheduled salary payment.

Necessity Leave. Each employee shall be afforded the opportunity to use up to forty-eight (48) hours of sick leave per calendar year, on a non-cumulative basis, as personal necessity leave. All of this personal necessity leave may be used to attend to an illness of a child, parent, or spouse of the employee or as further specified below. As used in this section, “child” means a biological, foster, or adopted child, a stepchild, a legal ward, or a child of a person standing in loco parentis; “parent” means a biological, foster, adoptive parent, a stepparent, or a legal guardian; and “immediate family” means any member of the employee’s household related by blood or marriage; a parent, parent-in-law, spouse, child, brother, sister, grandparent, or grandchild of the employee, regardless of residence; any other relative of the employee by blood or marriage, where it can be established by the employee that the employee’s presence is required to handle emergency arrangements and/or other matters.

Up to 48 hours of this personal necessity leave may be used: a) to attend to a serious accident to members of the employee’s immediate family; b) childbirth; c) to cope with imminent danger to the employee’s family, home, or other valuable property; d) when the existence of external circumstances beyond the employee’s control make it impossible for them to report for duty; or e) attend to medical or dental SANTA ANA MANAGEMENT ASSOCIATION (SAMA) MOU: 2022-2025 31 City Council 43 – 34 6/6/2023
appointments for members of the employee’s household. For the purposes of this section only, a “day” shall be defined as the number of hours of work that an employee is required to work according to their specific workday schedule.

K. Payment for Unused Sick Leave. For all employees in the bargaining unit who are currently employed by the City in a full-time position before the date of City Council approval of this 2022-2025 MOU:

1. 2.

Except in cases of disability retirement, upon non-disciplinary termination of employment:

Payment After Ten (10) Years. After ten (10) years but less than fifteen (15) years of cumulative full-time service with the City, each qualified employee shall be entitled to payment for fifty percent (50%) of the total accrued sick leave benefit credited into either, 1) their individual Retirement Health Savings (RHS) account or, 2) their individual 457 deferred compensation account, upon the effective date of such termination, not to exceed a maximum limit of six hundred forty (640) hours, at the base rate of pay effective on the date of such termination.

3. 4.

Payment After Fifteen (15) Years. After fifteen (15) years but less than twenty (20) years of cumulative full-time service with the City, each qualified employee shall be entitled to payment for fifty percent (50%) of the total accrued sick leave benefit credited into either, 1) their individual RHS account or, 2) their individual 457 deferred compensation account, not to exceed a maximum limit of eight hundred hours (800) hours, at the base rate of pay effective on the date of such termination.

Payment After Twenty (20) Years. After twenty (20) years but less than twenty-five (25) years of cumulative full-time service with the City, each qualified employee shall be entitled to payment for sixty-six and sixty-seven hundredths percent (66.67%) of the total accrued sick leave benefit credited into either, 1) their individual RHS account or, 2) their individual 457 deferred compensation account, not to exceed a maximum limit of one thousand sixty-seven (1,067) hours, at the base rate of pay effective on the date of such termination.

5. Payment After Twenty-Five (25) Years. After twenty-five (25) years or more of cumulative full-time service with the City, each qualified employee shall be entitled to payment for one-hundred percent (100%) of the total accrued sick leave benefit credited into either, 1) their individual RHS account or, 2) their individual 457 account, not to exceed a maximum limit SANTA ANA MANAGEMENT ASSOCIATION (SAMA) MOU: 2022-2025 32 City Council 43 – 35 6/6/2023
of two thousand (2,000) hours, at the rate of base pay effective on the date of such termination.

6. Employees who notify the City, in writing, of their intent to retire within twelve (12) calendar months shall be allowed to cash out any eligible sick leave bank balances (Section 10.1K) upon request. Employees shall receive payment the first paycheck in January after the request has been made. If said employee cashes out their eligible sick leave bank balances prior to retirement and subsequently does not retire from the City, all future sick leave accrual for said employee shall be subject to the same cash out provision elected and will be processed on the final paycheck. All combined cash outs cannot exceed what the said employee would have been entitled to if the cash out was processed on the final paycheck only.

7. Employees with at least ten (10) years of full-time city service that retire from the City of Santa Ana within one hundred and twenty (120) days of separation shall be eligible to convert up to two-thousand (2000) hours of accumulated unused sick leave to CalPERS Service Credit as defined in Section 13.3.

Effective the date of City Council adoption of this 2022-2025 MOU, the maximum total unused sick leave that can be converted shall be ten (10) eight (8) hour working days equal to eighty (80) hours. Employees hired on or after a contract amendment between the City and CalPERS shall not be eligible to convert unused sick leave to CalPERS for service credit.

8. 9.

The City Manager is authorized to grant a newly appointed incumbent of a SAMA classification sick leave credit up to an amount equal to any earned but unused sick leave credit available to such appointee at the time of their separation from their most recent previous employer.

A lump sum payment shall be made to the beneficiaries of any eligible employee whose death occurs while such employee is an active employee of the City, such payment to be in the amount of one-third (1/3) of the total sick leave benefit credited to the employee’s account at the time of their death, and at the rate of pay effective on the date of death.

10.2 Bereavement Leave.

A. An employee shall be granted up to three (3) days leave without loss of pay in case of death of a member of the employee’s immediate family. Such leave is designated as bereavement leave. “Immediate family” as used in this section is limited to:

SANTA ANA MANAGEMENT ASSOCIATION (SAMA) MOU: 2022-2025 33 City Council 43 – 36 6/6/2023

1. 2.

Any member of the employee’s household related by blood or marriage; A parent, parent-in-law, spouse, child, sibling, domestic partner, grandparent, or grandchild of the employee, regardless of residence;

3. Any other relative of the employee by blood or by marriage where it can be established by the employee that as a result of such relative’s death, the employee’s presence is required to handle funeral arrangements and/or matters of estate.

Effective January 1, 2023, employees shall be granted up to five (5) days of leave for the death of a member of the employee’s immediate family, as specified in Section 10.2(A). Three (3) of the days will be paid bereavement leave and the remaining two (2) days of leave may be unpaid, except that an employee may use accrued vacation, management vacation, or sick leave.

Whenever an employee is required to travel one way more than five hundred (500) miles to attend to the death of a member of the employee’s immediate family, an employee may use up to eighteen (18) hours of additional leave charged to their Personal Necessity Leave balance when authorized by the Executive Director.

10.3 Military Leave.

A. Proof of Orders and Reinstatements. An employee shall be granted military leave if they furnish the Executive Director of Human Resources satisfactory proof of their order to report for duty. Upon return and upon showing of proof of actual service pursuant to such orders, they will be reinstated as provided in Section 9-143 of the Civil Service Rules and Regulations of the City of Santa Ana.

B. Temporary. Members of the reserve forces of the United States, or the National Guard, granted temporary leave when ordered to duty, in accordance with the Military and Veterans Code, will be granted leave with pay not to exceed thirty (30) calendar days in each calendar year after one (1) year of service with the City upon presenting satisfactory proof of orders to and from such temporary active duties.

10.4 Jury Duty and Witness Leave. When an on-duty employee is called to serve as a juror or non-party witness in any court action, they shall be allowed to leave for the time actually required for such service without loss of pay. Each on-duty employee called for such service shall present to their Executive Director for examination the subpoena calling them to such service and shall pay into the City Treasury the fees collected for such service, with the exception of reimbursement for transportation expenses, if any.

SANTA ANA MANAGEMENT ASSOCIATION (SAMA) MOU: 2022-2025 34 City Council 43 – 37 6/6/2023
If an employee is called to serve on jury duty during a normal Friday off, Saturday, or Sunday, or on a City holiday, then the jury duty shall be considered the same as having occurred during employee’s day off work.

10.5 Unauthorized Absence. Unauthorized absence from duty for any duration of time may be considered cause for dismissal. Absence from duty without leave for five (5) consecutive working days shall be deemed a resignation from service; provided, however, if upon return to duty the person so absenting themselves makes an explanation satisfactory to the Executive Director regarding the cause of their absence, the Executive Director may restore them to their position, with the City Manager’s approval.

10.6 Authorized Absence Without Pay - Short Term. Absence without pay not to exceed five (5) consecutive working days, may be authorized by the Executive Director. Absence without pay not to exceed fifteen (15) calendar days may be authorized by the Executive Director with the approval of the City Manager. Such an absence may be authorized only if in the judgment of the Executive Director it serves the best interest of the City.

10.7 Authorized Absence Without Pay - Long Term. Upon receipt of a written request from an employee having permanent status, plus action by the Executive Director recommending approval of the request, the City Manager may grant a leave of absence without pay for up to six (6) months.

An employee returning to duty with the City shall inform the Executive Director and the Executive Director of Human Resources of their intention at least thirty (30) calendar days prior to the expiration of the six (6) month period, or shorter period if the full six (6) months is not taken. Upon receipt of such notice, the Executive Director will take steps necessary to restore the employee to their former position.

In addition to the above, the City Manager may grant a further extension not to exceed a total of one (1) year leave of absence without pay.

10.8 Industrial Leave. Any period of time during which an employee is required to be absent from their position by reason of an industrial injury or industrial illness for which they are entitled to receive compensation shall not be considered a break in continuous service for the purpose of their right to salary adjustments or to the accrual of vacation and seniority.

10.9 Pregnancy Disability Leave. A pregnant employee is entitled to a reasonable leave of absence without pay for any temporary disability resulting from pregnancy, miscarriage, childbirth or recovery therefrom. Such reasonable leave of absence shall not exceed four (4) months. However, an employee may be granted up to an additional two (2) months of leave, at the discretion of the City Manager, for a total of up to six (6) months in which to recover from the disability if substantiated by a physician’s certificate.

SANTA ANA MANAGEMENT ASSOCIATION (SAMA) MOU: 2022-2025 35 City Council 43 – 38 6/6/2023
Employees may take an unpaid leave of absence during pregnancy disability consistent with the law.

As with all other temporary disabilities, a physician’s certificate is required to verify the extent and duration of the temporary disability.

An employee who plans to take a pregnancy leave must give a reasonable notice (not less than four (4) weeks before the date they will take the leave and the estimated duration of the leave. Health and welfare insurance coverage will be continued only if the employee pays a cash premium to continue coverage while on a leave of absence without pay or is covered under the Family Medical Leave Act (“FMLA”) or California Family Rights Act (“CFRA”) provisions.

10.10 Administrative Leave. The City Manager is authorized to grant, at their discretion, paid or unpaid leave for full time employees.

10.11 Catastrophic Leave. In order to assist employees otherwise granted leave of absence without pay by the City Manager because of a catastrophic, non-industrial medical condition or injury, the City and SAMA agree to implement a Catastrophic Leave Donation Program.

Nothing herein shall be construed to alter City policies and procedures as provided in the Charter or ordinance of the City of Santa Ana or other provisions of this MOU with regard to granting unpaid leaves of absence.

The Catastrophic Leave benefit will be provided for non-industrial injury or sickness only.

The leave shall cover the uncompensated time prior to the employee’s becoming eligible for the Long-Term Disability benefits.

A. Guidelines. It shall be understood that all donations under this procedure are voluntary and subject to taxation for the recipient.

1. 2.

Employees may donate vacation time or one in lieu holiday to the eligible employee. In no event shall sick leave be donated.

Employees shall be provided a two (2) week period to submit donations.

Donations received after this two (2) week period shall not be processed.

The two (2) week period for each case shall be designed by the Executive Director or their designee as provided herein below.

3. All donations must be made in two (2) hour increments and a maximum of eight (8) hours per donor, except in lieu holidays must be for eight (8) hours.

SANTA ANA MANAGEMENT ASSOCIATION (SAMA) MOU: 2022-2025 36 City Council 43 – 39 6/6/2023

4. Any authorization of donations not made in accordance with the procedures outlined in Section 10.11(C)(2), will not be processed.

5. 6.

All donations shall be irrevocable.

In event the recipient returns to work before leave donations have been exhausted, any balance on the books shall be accrued by the recipient and designated as sick leave and may be used pursuant to Sections 10.1(A) through 10.1(K).

7. Donations shall be limited to employees of this bargaining unit or any other unrepresented unit.

B. Eligibility. Employees shall be eligible for Catastrophic Leave Donations if the following criteria are met:

1. When it is reasonably foreseeable that all accrued time on the books, such as sick leave and vacation, will be exhausted and the employee’s illness will continue past the time when the employee will be on paid status.

2. The employee’s Executive Director, or their designee, has approved a written request for donation accompanied by a medical statement from the employee’s attending physician. The attending physician’s statement must verify the employee’s need for an extended medical leave and an estimate of the time the employee will be unable to work.

C. Procedure.

1. Upon receipt of a valid request for donations from an eligible employee, the Executive Director or their designee shall post a notice of the eligible employee’s need for donation on bulletin boards accessible to employees.

No confidential medical information shall be included in the posted notice.

2. Employee wishing to donate time to an eligible employee must sign their authorization of the transfer of such donated time and provide:
a.
b.

Their name, department name, and employee number.

The number of hours of vacation time of the donation within the limitation of Section 10.11(A)(3);
c. The name, department and employee number of the recipient; SANTA ANA MANAGEMENT ASSOCIATION (SAMA) MOU: 2022-2025 37 City Council 43 – 40 6/6/2023
d. A statement indicating that the donor understands such donation of time is irrevocable.

3. 4.

At the close of the donation period, the department shall verify that each donating employee has accrued vacation time balances sufficient to cover the designated donation.

The department shall submit all approved donation authorizations for an eligible employee at one time for processing. No donation authorizations for the eligible employee will be processed after this period. However, employees who receive donations under this procedure and who exhaust all donated hours may request an additional donation period subject to the provisions of Section 10.11(A) herein.

5. The City shall add the donated time to the recipient’s sick leave account.

10.12 Paid Parental Leave. Effective the first full pay period following City Council approval of this 2022-2025 MOU, employees who have completed twelve (12) months of full-time employment with the City shall be eligible for paid parental leave with pay of up to eight (8) weeks for the birth, adoption, or foster of a child. Such leave shall run concurrently with FMLA/CFRA. An employee who plans to take paid parental leave must give a reasonable notice (not less than four (4) weeks or as soon as practicable when a four (4) week notice is not possible due to the unexpected nature of the qualifying event) before the date they intend to take the leave and the estimated duration of the leave. This provision shall only apply to employees who begin a parental leave of absence effective on or after the first full pay period following City Council approval of this 2022-2025 MOU and shall not be applied retroactively.

SANTA ANA MANAGEMENT ASSOCIATION (SAMA) MOU: 2022-2025 38 City Council 43 – 41 6/6/2023

ARTICLE XI

11.0 EMPLOYEE INSURANCE

11.1 Health Insurance. The City shall contribute an allowance towards the employee’s Cafeteria Benefit plan for health insurance premiums for eligible employees and their qualified dependents under The Public Employees’ Medical & Hospital Care Act (PEMHCA) which governs the California Public Employees’ Retirement System (CalPERS) Health Insurance Programs pursuant to the provisions below.

A. Effective January 1, 2022, the City will provide a monthly contribution to health insurance premiums at the following rates:
 Employee Only
 Employee +1
 Employee + Family
$804.00
$1,457.00
$1,850.00
B. Effective the first full pay period following City Council approval of this 2022- 2025 MOU, the City will provide a monthly contribution to health insurance premiums at the following rates:
 Employee Only
 Employee +1
 Employee + Family
$904.00
$1,557.00
$1,950.00
C.

Effective January 1, 2024, the City will provide a monthly contribution to health insurance premiums at the following rates:
 Employee Only
 Employee +1
 Employee + Family
$954.00
$1,607.00
$2,000.00
Effective January 1, 2025, the City will provide a monthly contribution to health insurance premiums at the following rates:
 Employee Only
 Employee +1
 Employee + Family
$1,004.00
$1,657.00
$2,050.00
The above amounts are inclusive of the CalPERS statutory minimum amount which CalPERS determines and publishes each year.

SANTA ANA MANAGEMENT ASSOCIATION (SAMA) MOU: 2022-2025 39 City Council 43 – 42 6/6/2023
E.

Any contribution necessary to maintain benefits under any health insurance program provided by the City for its employees and their eligible dependents in excess of the amount of the City contribution to the Cafeteria Benefit Plan specified above shall be borne entirely by the employee.

Cafeteria Benefit Plan. The City provides a Cafeteria Benefit Plan adopted in accordance with the provisions of Internal Revenue Code § 125 for employees covered by this MOU.

1. Employees will be eligible to receive through the Cafeteria Benefit Plan, the cash difference (subject to taxation as wages) if the monthly City allowance exceeds the monthly cost of the Medical and Dental monthly plan premium cost.

2. For each such employee who is covered under a spouse’s non-City sponsored health plan, the City will pay the employee a cash-in-lieu payment (subject to taxation as wages) each month in an amount equal to the City contribution for the “employee-only” coverage for medical. The above specified amount of City contribution towards such coverage waived will be applied to earned income. If said employee waives, in writing, Citypaid coverage, said employee shall provide proof of medical insurance coverage in a non-City-sponsored health plan. Said waiver shall include a provision warning such employee that re-entry into any of the Citysponsored plans is allowed only at open enrollment, unless there is a qualifying event, and will require proof of insurability for such employee and/or eligible dependents.

11.2 Dental Insurance. The City agrees to contribute towards the Cafeteria Benefit plan the payment of premiums for dental insurance plans provided by the City for employees covered by this MOU and their eligible dependents on the following basis.

A. Effective January 1, 2022, the City shall contribute an allowance towards the employee’s Cafeteria Benefit plan for dental insurance premiums for eligible employees and their qualified dependents in the amount of one hundred thirty dollars ($130) per month per employee.

Any contribution necessary to maintain benefits under said dental plans in excess of the amount of the City contribution to the cafeteria plan specified above shall be borne entirely by the employee.

For each such employee who is covered under a spouse’s non-City sponsored dental plan, the City will pay the employee a cash-in-lieu payment (subject to taxation as wages) each month in an amount equal to one-hundred percent (100%) of the City’s SANTA ANA MANAGEMENT ASSOCIATION (SAMA) MOU: 2022-2025 40 City Council 43 – 43 6/6/2023
contribution, if the employee waives, in writing, City-paid coverage. Such waiver shall include a provision warning such employee that reentry into any Citysponsored plan is allowed only at open enrollment, unless there is a qualifying event, and may require proof of insurability for such employee and/or eligible dependents.

11.3 Long-Term Disability (L.T.D.) Insurance. For employees covered by this MOU, the City shall pay one hundred percent (100%) of the premium cost for a sixty (60) day elimination period long term disability insurance plan with a maximum benefit of ten thousand dollars ($10,000) per month for employee only coverage.

11.4 Life Insurance. The City shall continue to pay one hundred percent (100%) of the premium cost for term life insurance coverage under the policy it maintains on behalf of employees in order to provide employees covered by this MOU with life insurance coverage in an amount equal to two (2) times employee's annual rate of salary to a maximum of three hundred thousand dollars ($300,000) provided said employees can provide evidence of insurability of coverage, if so required by the terms and conditions of said term life insurance policy.

In the event any such employee is determined to be ineligible for said insurance coverage, the City will attempt to provide as much coverage as may be obtained at reasonable cost not to exceed the actual monthly premium amount allotted for said coverage without having to provide evidence of insurability.

11.5 The City shall retain the right to change health, dental and life insurance carriers, administer the insurance benefits provided thereunder, and select and/or change any excess or supplemental insurance carriers as a part of any self-insurance plan during the term of this MOU, provided that employees covered by this MOU continue to receive equivalent benefits and provided that the parties have met and conferred before the benefits changes are made.

11.6 Retirement Health Savings (RHS) Plan. Employees participate in the City’s Retirement Health Savings Plan (RHS) subject to the following:

A. One and one-quarter percent (1.25%) will be deducted from each employee’s base pay and deposited into their individual RHS account each pay period. This contribution shall be made on a pre-tax basis.

B. The City will contribute one percent (1%) of the employee’s base pay deposited into their individual RHS account each pay period.

SANTA ANA MANAGEMENT ASSOCIATION (SAMA) MOU: 2022-2025 41 City Council 43 – 44 6/6/2023

11.7 Vision Plan. The City shall maintain in effect a vision care plan for employees covered by this MOU. This plan is voluntary on behalf of the employee and shall be fully funded by the participating employee.

SANTA ANA MANAGEMENT ASSOCIATION (SAMA) MOU: 2022-2025 42 City Council 43 – 45 6/6/2023

ARTICLE XII

12.0 WELLNESS AND FITNESS REIMBURSEMENT PROGRAM

12.1 The City agrees to provide employees covered by this MOU up to a three-hundred dollars ($300) per fiscal year reimbursement for qualified wellness programs and fitness memberships as defined below:

Membership in a health/fitness club.

Participation in a weight loss/smoking cessation/wellness/fitness program

12.2 Employees must complete a wellness and fitness reimbursement program form and provide proof of enrollment, and receipt of purchase during the current fiscal year in order to receive reimbursement. An employee may pre-purchase a multi-year wellness/fitness enrollment. In the event an employee pre-purchases a wellness/fitness enrollment and is provided a single receipt, Human Resources may evaluate how to disburse the reimbursement. Forms with required back up documentation will be turned into Human Resources for the Executive Director of Human Resources or their designee’s approval. A copy will be kept in Human Resources and the original will be returned to the employee.

If approved for reimbursement, the department will complete a Direct Payment Voucher (DPV) along with form and back-up documentation to the Finance Department for processing.

12.3 Reimbursement requests will not be processed if the request is turned in later than thirty (30) days from the end of the fiscal year in which enrollment and purchase was made.

12.4 The city will not reimburse employees for any of the above listed activities for family/dependent health related expenses.

12.5 The Wellness-Fitness reimbursement is defined as “wages” in Section 61(a)(1) of the Internal Revenue Code and Section 1.61-21(a)(3) of the Income Tax Regulations provide that except as otherwise provided in subtitle A, gross income includes compensation for services, including fees, commissions, fringe benefits, and similar items. As such, the reimbursement is considered wages subject to employment taxes under Sections 312(a), 3306(b), and 3401(a).

12.6 The wellness-fitness reimbursement defined in this section is not intended to be defined as compensation earnable under Public Employees Retirement Law (PERL), Government Code (G.C.) section 20636.

SANTA ANA MANAGEMENT ASSOCIATION (SAMA) MOU: 2022-2025 43 City Council 43 – 46 6/6/2023

ARTICLE XIII

13.0 RETIREMENT

13.1 General. The terms of the existing contract between the City and California Public Employees’ Retirement System (CalPERS) governing the City retirement benefits for affected employees are incorporated by reference herein. The City shall continue to make contributions to CalPERS in accordance with its contract with CalPERS for employees covered by said contract as amended.

13.2 Deferred Retirement. The City will continue to make payment to CalPERS on behalf of each employee, in an amount necessary to pay one hundred percent (100%) of their individual retirement contribution which is currently equal to eight percent (8%) of base salary, effective January 1, 2009. Such payments shall be credited to the individual employee’s CalPERS account as Employer Paid Member Contribution (EPMC).

Such payments are not increases in base salary and no salary rate range applicable to any of the employees covered by this MOU shall be changed or deemed to have been changed by reason thereof. As a result, the City will not treat these payments as ordinary income and, thus will not withhold Federal or State income tax from said payments. In the event that the City receives a ruling from the Internal Revenue Service that such payments are ordinary income of the employees instead of deferred compensation, the City’s obligation to make such payments shall discontinue and in place thereof the base salary of each said employee shall forthwith be increased by eight percent (8%).

For the purpose of reporting an employee’s compensation to CalPERS, the City shall include these payments as if they were a part of the employee’s base salary.

13.3 Credit for Unused Sick Leave.

A. An employee covered by this MOU with less than ten (10) years of full-time City service, can have up to a maximum of sixteen hundred (1,600) hours of unused accumulated sick leave at the time of retirement converted to additional service credit at the rate of four thousandths (0.004) years of service credit for each day of unused sick leave (i.e., two hundred (200) days of sick leave equals eight tenths (.8) additional years of service credit). The City must report only those days of unused sick leave that were accrued by the employee during the normal course of employment. This section applies to members whose effective date of retirement is within one hundred and twenty (120) days or four (4) months of separation from employment.

B. Employees with at least ten (10) years of full-time City service that retire from the City of Santa Ana within one hundred twenty (120) days or four (4) months of SANTA ANA MANAGEMENT ASSOCIATION (SAMA) MOU: 2022-2025 44 City Council 43 – 47 6/6/2023
separation from employment can convert up to two thousand (2,000) hours of accrued unused sick leave towards CalPERS Service Credit. The City must report only those days of unused sick leave that were accrued by the employee during the normal course of employment.

C. Effective the date of City Council adoption of this 2022-2025 MOU, the maximum total unused sick leave that can be converted shall be ten (10) eight (8) hour working days equal to eighty (80) hours. Employees hired on or after a contract amendment between the City and CalPERS shall not be eligible to convert unused sick leave to CalPERS for service credit.

13.4 Military Service Credit as Public Service. An employee covered by this MOU may elect to purchase up to four (4) years of service credit for any continuous active military or merchant marine service prior to employment. The employee must contribute an amount equal to the contribution for current and prior service that the employee and the employer would have made with respect to that period of service.

13.5 2.7% at 55 Service Retirement Benefit for Classic Miscellaneous Members. The City agrees to provide Miscellaneous employees covered by this MOU with the 2.7% at 55 Service Retirement benefit pursuant to CalPERS regulations. This formula will apply to each year of eligible service credited with the City of Santa Ana.

Employee Contribution for Retirement Benefit. The employee’s contribution rate will be eight percent (8%). All employee contributions for retirement benefits are paid to the employer cost (i.e., employer contribution) in accordance with Government Code Section 20516(f). The parties acknowledge that this provision has been mutually negotiated and incorporated as an essential element of the parties’ MOU. In the event that either party wishes to modify this provision in a successor MOU, the parties intend for this provision to remain unchanged until a successor MOU is ratified or impasse procedures have been concluded.

Pre-Taxable Benefit. To the extent permitted by CalPERS and Internal Revenue Service regulations, the City shall make the above employee deductions pre-tax contributions.

13.6 For “New Members” within the meaning of the California Public Employees’ Pension Reform Act (“PEPRA”) of 2013.

The PEPRA went into effect on January 1, 2013. The parties agree that if there is any other clean up or other retirement legislation which goes into effect during this MOU and if there are provisions of that legislation which, by law, automatically goes into effect, either party may request to negotiate over the legislation, including over the impact.

SANTA ANA MANAGEMENT ASSOCIATION (SAMA) MOU: 2022-2025 45 City Council 43 – 48 6/6/2023
Retirement Formula: Per Government Code Section 7522.20(a), the 2%@ 62 retirement formula for non-sworn.

Final compensation will be based on the highest annual average compensation earnable during the thirty-six (36) consecutive months immediately preceding the effective date of their retirement, or some other thirty-six (36) consecutive month period designated by the member.

Employees shall pay one half (1/2) of the normal cost rate, as established by CalPERS.

SANTA ANA MANAGEMENT ASSOCIATION (SAMA) MOU: 2022-2025 46 City Council 43 – 49 6/6/2023

ARTICLE XIV

14.0 TRAINING & EDUCATIONAL ASSISTANCE PROGRAM

14.1 Employees shall continue to be eligible to participate in the existing Training and Education Assistance Program provided for all regular, full-time employees of the City; except, however, reimbursement for eligible employees shall be one hundred percent (100%) of tuition and registration costs up to a maximum of three thousand dollars ($3,000), per fiscal year in accordance with the provisions of the program defined in this section.

14.2 Purpose.

A. To encourage the employees of the City of Santa Ana to take college courses and special training courses which will better enable them to perform their present duties and prepare them for increased responsibilities.

To provide financial assistance to eligible employees for education and training.

To establish eligibility requirements, conditions and procedures whereby such assistance may be provided.

14.3 Eligibility.

Applications for tuition reimbursement shall be considered only from full-time permanent employees who have completed their probationary period.

Reimbursement is not authorized for courses for which the employee is receiving financial assistance from other sources such as G.I. Bill, scholarships, grants, etc.

Applications shall be approved only for courses directly related to the employee’s job or directly related to a promotional position in the employee’s occupational specialty.

Courses not ostensibly related to the employee’s job, but which are required to qualify for a degree that is directly related to their job will be reimbursable so long that it meets the requirements in Section 14.3 E.

Prior to receiving tuition reimbursement, employees must submit documentary proof of having received a grade of not less than “C” for the course. If objective ratings are not rendered for a specific course, then a certificate of successful completion must be submitted.

SANTA ANA MANAGEMENT ASSOCIATION (SAMA) MOU: 2022-2025 47 City Council 43 – 50 6/6/2023
F. Approval shall be limited to courses given by accredited colleges and universities, city colleges or adult education courses under the sponsorship of a Board of Education. Workshops, seminars, conferences and similar activities not identifiable as a formal course of instruction within the curriculum of a recognized educational institution, do not fall within the purview of this program but may be authorized and funded by the interested department without coordination with the Human Resources Department.

G. When an employee is required by their Department Head to attend a particular course or seminar, the expense shall be borne entirely by the department.

14.4 Reimbursement.

Reimbursement shall be based on the cost of tuition, required enrollment/registration fees, miscellaneous fees (health, parking, student union fees, etc.) and all required texts, eBooks, and related material for each course.

Additional expenses such as meals are not reimbursable.

Costs for required texts are eligible for one hundred percent (100%) reimbursement subject to the following conditions:

1. A duplicate of the required text(s) and eBooks was unavailable for loan from the departmental libraries prior to the commencement of course work; or

2. Any textbook(s) purchased by the City shall be submitted to the employee’s respective departmental library in order that such text(s) may be made available to all employees.

C. Maximum tuition reimbursement is three thousand dollars ($3,000) per fiscal year, which the employee may claim either as costs are incurred during the year or as one lump sum.

14.5 Procedures.

A. An employee who desires to seek tuition reimbursement under the provisions of this Article must complete, in duplicate, an Application for Training and Educational Assistance form along with a copy of the course plan and schedule, and submit it to their Department Head prior to the commencement of class(es) or the payment of fees for registration/tuition.

SANTA ANA MANAGEMENT ASSOCIATION (SAMA) MOU: 2022-2025 48 City Council 43 – 51 6/6/2023
B.

The Department Head shall recommend approval or denial based on established criteria and budgetary constraints, and then shall forward the application to the Executive Director of Human Resources.

The Executive Director of Human Resources or their designee shall approve or disapprove the application for the City Manager. One copy shall be returned to the employee and the duplicate shall be retained by the Human Resources Department.

It is advisable that the applicant accomplish the procedure so far described in order to ascertain the eligibility of the intended course of instruction for reimbursement under the provisions of this policy prior to the inception of the course or disbursement of personal funds.

D. The employee shall submit their copy of the approved application to the Human Resources Department within three (3) months after they have completed the course and received their final grade. Such employee must include official verification of their final grade with appropriate receipts for tuition and textbook costs.

Applications not submitted to the Human Resources Department within three (3) months following completion of the course become void.

Upon receipt of the application and required documentation, the Human Resources Department shall determine whether the completed course of instruction is compatible with the provisions of this Article and shall compute the amount of reimbursement, authenticate the application and forward it to the employee’s Department Head.

The Department Head shall then authorize the Finance & Management Services Department to reimburse the employee the approved amount out of the budget of the department concerned.

SANTA ANA MANAGEMENT ASSOCIATION (SAMA) MOU: 2022-2025 49 City Council 43 – 52 6/6/2023

ARTICLE XV

15.0 ELECTRONIC DEVICE STIPEND

15.1 Electronic Device Stipend All employees covered under this MOU, whose supervisor determines are required to have a cellphone or tablet will be given the option to choose one of the following:

Be provided a City paid phone or tablet, or
Be compensated one hundred dollars ($100) monthly to cover costs related to the use of personal electronic devices (phone and/or tablet) for City business.

Employees who use their own devices will comply with the City’s policy.

SANTA ANA MANAGEMENT ASSOCIATION (SAMA) MOU: 2022-2025 50 City Council 43 – 53 6/6/2023

ARTICLE XVI

16.0 STRIKES AND WORK STOPPAGES

16.1 Prohibited Conduct.

A. SAMA, its officers, agents, representatives, and members agree that during the term of this MOU, they will not cause or condone any unlawful strike, walkout, slowdown, sickout, or any other unlawful job action by withholding or refusing to work.

16.2 SAMA Responsibility. Whenever SAMA, its officers, agents, representatives, or members engage in any of the conduct prohibited in Section 16.1(A), SAMA will immediately instruct any persons engaging in such conduct that their conduct is violating this MOU and unlawful, and they must immediately cease engaging in the conduct prohibited in Section

16.1(A), and return to work.

SANTA ANA MANAGEMENT ASSOCIATION (SAMA) MOU: 2022-2025 51 City Council 43 – 54 6/6/2023

ARTICLE XVII

17.0 SOLE & ENTIRE MOU

17.1 It is understood and agreed that the parties to this MOU are subject to all current and future applicable Federal and California laws, The City of Santa Ana Charter, its Municipal Code, and its City’s Employer-Employee Relations Resolution Number 81-075. It is the intent of the parties hereto that the provisions of this MOU will supersede all prior MOUs, or contrary salary, and /or personnel rules and regulations, Municipal Code provisions of the City, oral or written MOUs expressed or implied between the parties. This MOU will govern the entire relationship and will be the sole source of any rights that they may assert hereunder. This MOU is not intended to conflict with Federal or State law or the City Charter.

17.2 Notwithstanding the above, there exists within the City personnel rules and regulations and departmental rules and regulations. The City shall continue these rules and regulations to the extent that they do not contravene specific provisions of this MOU. Such rules and regulations may, from time to time, be changed by the City. If these changes affect wages, hours, or other terms and conditions of employment, the City shall meet and confer with SAMA; provided further, the parties shall change no provision of the rules and regulations to contravene specific provisions of this MOU.

SANTA ANA MANAGEMENT ASSOCIATION (SAMA) MOU: 2022-2025 52 City Council 43 – 55 6/6/2023

ARTICLE XVIII

18.0 SEPARABILITY PROVISION

18.1 Should any provisions of this MOU be found to be inoperative, void, or invalid by a court competent jurisdiction, all other provisions of this MOU shall remain in full force and effect for the duration of this MOU, provided that if any such affected provisions invalidate or void any benefits of employees covered hereunder, the parties shall forthwith commence negotiations to replace the invalidated benefits with benefits of comparable value.

SANTA ANA MANAGEMENT ASSOCIATION (SAMA) MOU: 2022-2025 53 City Council 43 – 56 6/6/2023

ARTICLE XIX

19.0 DISCIPLINE

19.1 Pre-Disciplinary Procedure
A. If an employee is to be suspended without pay, reduced in pay, demoted, or dismissed, the employee shall:

1. Receive written notice of the intended action at least ten (10) calendar days before the date it is intended to become effective, stating the specific grounds and the particular facts upon which the intended action is based.

2. 3.

Receive copies of any known materials, reports, transcripts, statements, or other documents upon which the intended action is based.

Be accorded the right to respond to the intended charges in writing or in person with the Department Head or designee within a reasonable period of time, not to exceed ten (10) calendar days unless the Department Head or designee authorizes a longer time.

4. Be given the written decision of the Department Head or designee at the earliest practicable date prior to the effective date of the disciplinary action.

19.2 Disciplinary Appeals Procedure,
A. Appeals Procedures for Disciplinary Action Not Covered by the Informal Appeals Procedure

1. Step 1.
a. If an employee desires to appeal a disciplinary action not covered by the informal appeals process, they (or their representative) shall submit a written notice of appeal to the Executive Director of Human Resources or designee within ten (10) calendar days of receiving the written decision from the Department Head or designee.
b. The Department Head or City Manager or designee (depending on who issued the disciplinary action as determined by the Executive Director of Human Resources or designee) shall meet with the employee within twenty-one (21) days after the submission of the SANTA ANA MANAGEMENT ASSOCIATION (SAMA) MOU: 2022-2025 54 City Council 43 – 57 6/6/2023
appeal. The Department Head or City Manager or designee may affirm, reverse, or modify the disciplinary action.
c. The Department Head or City Manager or designee shall deliver the written response to the employee within ten (10) calendar days after meeting with the employee.

2. Step 2.
a. Filing the appeal: If the employee is not satisfied with the Department Head’s or City Manager’s or designee’s decision, they (or their representative) shall submit a written notice of appeal to be submitted to an impartial arbitrator for a final and binding decision.

Such written notice of appeal shall be submitted in writing to the Executive Director of Human Resources or designee within ten (10) calendar days of receiving the written decision from the Department Head or City Manager or designee.
b.
c.

The City and Union shall create and maintain a standing list of three (3) to five (5) mutually approved arbitrators.

The City and Union shall select an arbitrator from the standing list via the striking method. The parties shall mutually agree which party strikes the first name. If the parties cannot mutually agree, the parties shall toss a coin to determine who shall strike the first name. Once the arbitrator is selected, the parties will contact the arbitrator to schedule a hearing.
d. If none of the identified arbitrators are able to take the case, then the parties will request a list of seven (7) arbitrators from the State Mediation and Conciliation Services. Once the list is received, the representatives of the parties shall strike names until an arbitrator is chosen. The parties shall mutually agree which party will strike the first name. If the parties cannot mutually agree, the parties shall toss a coin to determine who shall strike the first name. Once the arbitrator is selected, the parties will contact the arbitrator to schedule a hearing.
e. Hearing Process: During the hearing, the formal rules of evidence do not apply. The cost of the arbitrations, including but not limited to the list of arbitrators, the arbitrator themselves, and the court reporter, shall be split evenly between the City and the Union. The arbitrator’s decision will be final and binding. The arbitrator shall SANTA ANA MANAGEMENT ASSOCIATION (SAMA) MOU: 2022-2025 55 City Council 43 – 58 6/6/2023
issue the decision within thirty (30) calendar days from the conclusion of the hearing, unless the parties agree otherwise.

19.3 Informal Appeals Procedure
A. Informal Appeals Procedure, as opposed to the formal procedures, shall be used for written reprimands.

1. The appeal is an opportunity for the employee (or their representative) to present information and arguments why a written reprimand should not be issued or offer alternatives to the written reprimand.

2. Notice of Appeal: Within ten (10) calendar days of receipt by an employee of the written reprimand, the employee (or their representative) shall notify the Executive Director of Human Resources or designee in writing that they intend to appeal the written reprimand. The Executive Director of Human Resources or designee shall contact either the employee or their identified representative within ten (10) calendar days of receipt of the notice of appeal to schedule the appeal meeting.

3. 4.

Hearing Officer: The Department Head or City Manager or designee (depending on who issued the written reprimand as determined by the Executive Director of Human Resources or designee) shall serve as the hearing officer. The meeting shall take place within twenty-one (21) calendar days from the date the employee filed the appeal or such other time as may be agreeable by the parties.

Decision: After the meeting, a decision will be submitted in writing within thirty (30) calendar days and provided to the employee. The decision is final and binding.

19.4 Performance evaluations shall not be subject to appeal.

SANTA ANA MANAGEMENT ASSOCIATION (SAMA) MOU: 2022-2025 56 City Council 43 – 59 6/6/2023

ARTICLE XX

20.0 GRIEVANCE REVIEW PROCEDURE

20.1 Alleged Violations Concerning the Interpretation or Application of Specific Provisions of This MOU.

A. Solely the Union (not an employee or group of employees) shall be allowed to file a grievance concerning the interpretation or application of specific provisions of this MOU.

20.2 Step 1
A.

The parties can mutually agree to extend any deadlines in this Article.

The Union shall first attempt to resolve the grievance at Step 1 with the Executive Director of Human Resources or designee without undue delay, but in no case, beyond a period of ten (10) calendar days after the occurrence of the alleged incident giving rise to the grievance, or when the grievant knew or should have reasonably become aware of the facts giving rise to the grievance.

B. The Executive Director of Human Resources or designee will respond to the grievance within fourteen (14) calendar days of receiving the grievance.

20.3 Step 2.

Every effort shall be made to find an acceptable solution to the grievance at Step 1.

If the Union is not satisfied with the response from the Executive Director of Human Resources or designee, the Union must submit grievance in writing to Step 2 (binding arbitration) to the Executive Director of Human Resources or designee with ten (10) calendar days of receiving the Step 1 response. Should the Union fail to file a written grievance at Step 2 within ten (10) calendar days after receiving the response at Step 1, the grievance shall be barred and waived.

B. The City and Union agree to select an arbitrator in the following manner:

1. 2.

The City and Union shall refer to the mutually approved standing list of arbitrators as specified in Section 19.2(A)(2)(b).

The City and Union shall select an arbitrator from the standing list via the striking method. The parties shall mutually agree which party strikes the first name. If the parties cannot mutually agree, the parties shall toss a coin SANTA ANA MANAGEMENT ASSOCIATION (SAMA) MOU: 2022-2025 57 City Council 43 – 60 6/6/2023
to determine who shall strike the name. Once the arbitrator is selected, the parties will contact the arbitrator to schedule a hearing.

3. If none of the identified arbitrators are able to take the case, then the parties will request a list of seven (7) arbitrators from the State Mediation and Conciliation Services. Once the list is received, the representatives of the parties shall strike names until an arbitrator is chosen. The parties shall mutually agree which party strikes the first name. If the parties cannot mutually agree, the parties shall toss a coin to determine who shall strike the first name. Once the arbitrator is selected, the parties will contact the arbitrator to schedule a hearing.

C. Hearing Process: During the hearing, the formal rules of evidence do not apply.

The cost of the arbitration including but not limited to the list of arbitrators, the arbitrator themselves, and the court reporter shall be split evenly between the City and Union. The arbitrator’s decision shall be final and binding. The arbitrator shall issue their decision within thirty (30) calendar days from the conclusion of the hearing, unless the parties agree otherwise.

20.4 Alleged Violations of City Rules, Regulations, and Policies.

A. If an employee, group of employees, or Union (grievant) believes there has been a violation, misapplication, or misinterpretation of a City rule, regulation, or policy, the grievant may file a grievance within ten (10) calendar days of the alleged violation, misapplication, or misinterpretation or when the grievant knew or should have reasonably become aware of the facts giving rise to the grievance.

B. Step 1.

1. 2.

3. A grievant must submit a grievance in writing to the Executive Director of Human Resources or designee.

The Department Head shall meet with the employee within ten (10) calendar days after submission of the grievance.

The Department Head shall deliver the Step 1 written response to the employee within ten (1) calendar days after meeting with the employee.

C. Step 2.

1. If the grievant is not satisfied with the Step 1 response, the grievant must submit the grievance in writing to Step 2 to the Executive Director of SANTA ANA MANAGEMENT ASSOCIATION (SAMA) MOU: 2022-2025 58 City Council 43 – 61 6/6/2023
Human Resources or designee within ten (10) calendar days of receiving the Step 1 response.

2. 3.

The City Manager or designee shall meet with the employee within twentyone (21) days after submission of the Step 2 grievance. The City Manager or designee may affirm, reverse, or modify the decision made at Step 1.

The City Manager or designee shall deliver the Step 2 written response to the employee within ten (10) calendar days after meeting with the employee.

D. Step 3.

1. If the grievant is not satisfied with the Step 2 response, the grievant must submit the grievance in writing to Step 3 (binding arbitration) to the Executive Director of Human Resources or designee within ten (10) calendar days of receiving the Step 2 response. Should the grievant fail to file a written grievance at Step 3 within ten (10) calendar days after receiving the response at Step 2, the grievance shall be barred and waived.

2. The City and Union agree to select an arbitrator in the following manner:
a.
b.

The City and Union shall refer to the mutually-approved standing list of arbitrators as specified in Section 19.2(A)(2)(b).

The City and Union shall select an arbitrator via the striking method.

The parties shall mutually agree which party strikes the first name.

If the parties cannot mutually agree, the parties shall toss a coin to determine who shall strike the first name. Once the arbitrator is selected, the parties will contact the arbitrator to schedule a hearing. c. If none of the identified arbitrators are able to take the case, then the parties will request a list of seven (7) arbitrators from the State Mediation and Conciliation Services. Once the list is received, the representatives of the parties shall strike names until an arbitrator is chosen. The parties shall mutually agree which party strikes the first name. If the parties cannot mutually agree, the parties shall toss a coin to determine who shall strike the first name. Once the arbitrator is selected, the parties will contact the arbitrator to schedule a hearing.

3. Hearing Process: During the hearing, the formal rules of evidence do not apply. The cost of the arbitration including but not limited to the list of SANTA ANA MANAGEMENT ASSOCIATION (SAMA) MOU: 2022-2025 59 City Council 43 – 62 6/6/2023
arbitrators, the arbitrator themselves, and the court reporter shall be split evenly between the City and Association. The arbitrator’s decision shall be final and binding. The arbitrator shall issue their decision within thirty (30) calendar days from the conclusion of the hearing, unless the parties agree otherwise.

SANTA ANA MANAGEMENT ASSOCIATION (SAMA) MOU: 2022-2025 60 City Council 43 – 63 6/6/2023

ARTICLE XXI

21.0 WAIVER OF BARGAINING DURING THE TERM OF THIS MOU

21.1 During the term of this MOU, the parties mutually agree that they will not seek to negotiate or bargain concerning wages, hours, or terms and conditions of employment, whether or not covered by the MOU, or in the negotiations leading thereto, and whether or not such matters were discussed, or were even within the contemplation of the parties during the negotiations leading to this MOU. Regardless of the waiver contained in this Article, the parties may, however, by mutual MOU, in writing, agree to meet and confer about any matter not covered by this MOU, or to carry out any provision of salary or benefit tied to another bargaining unit during the term of this MOU.

SANTA ANA MANAGEMENT ASSOCIATION (SAMA) MOU: 2022-2025 61 City Council 43 – 64 6/6/2023

ARTICLE XXII

22.0 EMERGENCY WAIVER PROVISION

22.1 In case of circumstances beyond the control of the City, such as acts of God, fire, flood, insurrection, civil disorder, national emergency, or similar circumstances, provisions of this MOU or the Santa Ana Municipal Code or Resolutions, which restrict the City’s ability to respond to these emergencies, shall be suspended for the duration of such emergencies.

After the City declares the emergency over, this MOU will be reinstated immediately.

SAMA shall have the right to meet and confer with the City regarding the impact of the suspension of the provisions in the MOU during the emergency.

SANTA ANA MANAGEMENT ASSOCIATION (SAMA) MOU: 2022-2025 62 City Council 43 – 65 6/6/2023

ARTICLE XXIII

23.0 TERM

23.1 The term of this MOU shall commence on the date when the terms and conditions for its effectiveness, as set forth in Article III, Implementation, are fully met, but in no event shall said MOU become effective prior to 12:01 a.m. on July 1, 2022. This MOU shall expire and otherwise be fully terminated at 11:59 p.m. on June 30, 2025.

SANTA ANA MANAGEMENT ASSOCIATION (SAMA) MOU: 2022-2025 63 City Council 43 – 66 6/6/2023

ARTICLE XXIV

24.0 NON-DISCRIMINATION

24.1 The parties mutually recognize and agree fully to protect the rights of all employees covered hereby to join and participate in the activities of SAMA and all other rights in the Employer-Employee Relations Resolution (Resolution Number 81-075) and Government Code Sections 3500 through 3511.

24.2 The City and the Union agree that they shall not discriminate against any employee in violation of State or Federal law. The City and the Union shall reopen any provision of this MOU for the purpose of complying with any order of a Federal or State agency or court of competent jurisdiction requiring a modification or change in any provision or provisions of this MOU in compliance with State or Federal anti-discrimination laws.

SANTA ANA MANAGEMENT ASSOCIATION (SAMA) MOU: 2022-2025 64 City Council 43 – 67 6/6/2023

ARTICLE XXV

25.0 RATIFICATION & EXECUTION

25.1 The City and SAMA have reached an understanding as to certain recommendations to be made to the City Council of the City of Santa Ana and have agreed that the parties hereto will jointly urge said Council to adopt a new wage and salary resolution which will provide for the changes contained in said joint recommendations. The City and SAMA acknowledge that this MOU shall not be in full force and effect until ratified by the membership of SAMA and adopted by the City Council of the City of Santa Ana. Subject to the foregoing, this MOU is hereby executed by the authorized representatives of the City and SAMA and entered into 7th day of June, 2023.

CITY OF SANTA ANA, a Municipal
Corporation of the State of California
Dated: _________________
Dated: _________________
Dated: _________________
ATTEST:

By: __________________________
Mayor
By: __________________________
City Manager
By: __________________________
Executive Director of Human Resources
APPROVED AS TO FORM:
_________________________
City Clerk
________________________
Peter Brown
Labor Attorney
Liebert Cassidy Whitmore
SANTA ANA MANAGEMENT ASSOCIATION (SAMA) MOU: 2022-2025 65 City Council 43 – 68 6/6/2023
This 2022-2025 MOU has been ratified by the membership of the Santa Ana Management Association.

Dated: ______________________
SAMA: ______________________
President
_______________________________________
Chief Negotiator
Orange County’s Employee Association (OCEA)
SANTA ANA MANAGEMENT ASSOCIATION (SAMA) MOU: 2022-2025 66 City Council 43 – 69 6/6/2023

EXHIBIT A

ADMINISTRATIVE MANAGEMENT

MONTHLY WAGE RATE SCHEDULE
EFFECTIVE JULY 1, 2022 TO JULY 1, 2023
JOB

JOB TITLE CODE STEP A STEP B STEP C STEP D STEP E
Applications Systems Manager (AM) 02910
02915
01772
11,297
11,867
10,048
11,867 12,460 13,083 13,738
Applications/Tech Support Manager (AM) 12,460
10,550
13,083
11,079
13,738
11,634
14,425
Assistant Public Works Maintenance Manager 12,214
(AM)
Budget and Research Manager (AM) 06400
00493
02745
01769
04377
04785
03750
01705
10,759
9,757
11,297
10,245
9,337
11,867
10,759
9,804
12,460
11,297
10,297
11,634
10,197
10,197
12,460
12,397
13,083
11,867
10,811
12,214
10,708
10,708
13,083
13,018
Budget Supervisor (AM)
Code Enforcement Principal (AM)
Enterprise Program Manager (AM)
Facilities Maintenance Manager (AM)
Fleet Services Manager (AM)
8,893
10,048
8,805
10,550
9,247
11,079
9,711
8,805 9,247 9,711
Homeless Services Manager (AM) 10,759
10,708
11,297
11,242
11,867
Information Technology Infrastructure 11,808
Supervisor (AM)
Payroll Manager (AM) 07405
07404
02589
07609
01519
00151
10,048
9,247
8,893
10,550
9,429
9,294
9,294
10,550
11,867
9,711
10,550
9,711
11,079
10,197
9,804
11,634
10,708
10,297
12,214
10,915
10,759
10,759
12,214
13,738
11,242
12,214
11,242
10,811
12,825
11,462
11,297
11,297
12,825
14,425
11,808
Payroll Supervisor (AM)
Permit Services Principal (AM)
Principal Community Planner (AM)
Principal Human Resources Analyst (AM)
Principal Management Analyst (AM)
9,337
11,079
9,898
11,634
10,395
10,245
10,245
11,634
13,083
10,708
9,757
Principal Management Analyst (Excepted) (AM) 00149 9,757 Principal Planner (AM) 02471
06145
01800
11,079
12,460
10,197
Project Management Officer (AM)
Public Affairs Information Officer (Excepted)
(AM)
Risk Management Supervisor (AM) 01751 8,805
7,210
8,145
8,553
8,764
8,764
9,247
7,572
8,553
8,980
9,203
9,203
9,711
7,947
8,980
9,429
9,661
9,661
10,197
8,345
10,708
Secretary to the City Manager (Excepted) (AM) 01071 8,764 Senior Budget Analyst (AM) 00494
00482
01541
08595
9,429 9,898
Senior Financial Analyst (AM)
Senior Human Resources Analyst (AM)
9,898 10,395
10,655
10,655
10,146
Senior Human Resources Communications 10,146
Specialist (AM)
March 26, 2023 to July 1, 2023
Senior Legal Management Assistant (Excepted)
(AM)
02791 8,145 8,553 8,980 9,429 9,898
Senior Management Analyst (AM) 00152
00153
00477
8,145
8,145
8,764
8,553
8,553
9,203
8,980
8,980
9,661
9,429
9,429
9,898
Senior Management Analyst (Excepted) (AM) 9,898
Senior Organizational Development and
Training Analyst (AM)
10,146 10,655
SANTA ANA MANAGEMENT ASSOCIATION (SAMA) MOU: 2022-2025 67 City Council 43 – 70 6/6/2023
JOB

JOB TITLE CODE STEP A STEP B STEP C STEP D STEP E
Senior Risk Management Analyst (AM) 01757 8,764 9,203 9,661 10,146 10,655 Supervisor of Inspections (AM) 02371 9,804 10,297 10,811 11,353 11,927 SANTA ANA MANAGEMENT ASSOCIATION (SAMA) MOU: 2022-2025 68 City Council 43 – 71 6/6/2023

ADMINISTRATIVE MANAGEMENT

MONTHLY WAGE RATE SCHEDULE
EFFECTIVE JULY 2, 2023 TO JULY 13, 2024
JOB

JOB TITLE CODE STEP A STEP B STEP C STEP D STEP E
Applications Systems Manager (AM) 02910
02915
01772
11,636
12,223
10,349
12,223 12,834 13,475 14,150
Applications/Tech Support Manager (AM) 12,834
10,867
13,475
11,411
14,150
11,983
14,858
Assistant Public Works Maintenance Manager 12,580
(AM)
Budget and Research Manager (AM) 06400
00493
02745
01769
04377
04785
03750
01705
11,082
10,050
9,160
11,636
10,552
9,617
12,223
11,082
10,098
11,411
10,002
10,002
12,223
12,162
12,834
11,636
10,606
11,983
10,503
10,503
12,834
12,769
13,475
12,223
11,135
12,580
11,029
11,029
13,475
13,409
Budget Supervisor (AM)
Code Enforcement Principal (AM)
Enterprise Program Manager (AM)
Facilities Maintenance Manager (AM)
Fleet Services Manager (AM)
10,349
9,069
10,867
9,524
9,069 9,524
Homeless Services Manager (AM) 11,082
11,029
11,636
Information Technology Infrastructure 11,579
Supervisor (AM)
Payroll Manager (AM) 07405
07404
02589
07609
01519
00151
10,349
9,524
10,867
10,002
9,617
11,411
10,503
10,098
11,983
10,707
10,552
10,552
11,983
13,475
11,029
11,983
11,029
10,606
12,580
11,242
11,082
11,082
12,580
14,150
11,579
12,580
11,579
11,135
13,210
11,806
11,636
11,636
13,210
14,858
12,162
Payroll Supervisor (AM)
Permit Services Principal (AM)
Principal Community Planner (AM)
Principal Human Resources Analyst (AM)
Principal Management Analyst (AM)
9,160
10,867
9,712
11,411
10,195
10,050
10,050
11,411
12,834
10,503
9,573
Principal Management Analyst (Excepted) (AM) 00149 9,573 Principal Planner (AM) 02471
06145
01800
10,867
12,223
10,002
Project Management Officer (AM)
Public Affairs Information Officer (Excepted)
(AM)
Risk Management Supervisor (AM) 01751 9,069
7,426
8,389
8,810
9,027
9,027
9,524
7,799
8,810
9,249
9,479
9,479
10,002
8,185
9,249
9,712
9,951
9,951
10,503
8,595
11,029
Secretary to the City Manager (Excepted) (AM) 01071 9,027 Senior Budget Analyst (AM) 00494
00482
01541
08595
9,712 10,195
10,707
10,975
10,975
Senior Financial Analyst (AM)
Senior Human Resources Analyst (AM)
10,195
10,450
Senior Human Resources Communications 10,450
Specialist (AM)
Senior Legal Management Assistant (Excepted)
(AM)
02791 8,389 8,810 9,249 9,712 10,195
Senior Management Analyst (AM) 00152
00153
00477
8,389
8,389
9,027
8,810
8,810
9,479
9,249
9,249
9,951
9,712
9,712
10,195
10,195
10,975
Senior Management Analyst (Excepted) (AM)
Senior Organizational Development and
Training Analyst (AM)
10,450
Senior Risk Management Analyst (AM) 01757
02371
9,027 9,479 9,951 10,450
11,694
10,975
Supervisor of Inspections (AM) 10,098 10,606 11,135 12,285 SANTA ANA MANAGEMENT ASSOCIATION (SAMA) MOU: 2022-2025 69 City Council 43 – 72 6/6/2023

ADMINISTRATIVE MANAGEMENT

MONTHLY WAGE RATE SCHEDULE
EFFECTIVE JULY 14, 2024
JOB

JOB TITLE CODE STEP A STEP B STEP C STEP D STEP E
Applications Systems Manager (AM) 02910
02915
01772
11,985
12,590
10,659
12,590 13,219 13,879 14,575
Applications/Tech Support Manager (AM) 13,219
11,193
13,879
11,753
14,575
12,342
15,304
Assistant Public Works Maintenance Manager 12,957
(AM)
Budget and Research Manager (AM) 06400
00493
02745
01769
04377
04785
03750
01705
11,414
10,352
9,435
11,985
10,869
9,906
12,590
11,414
10,401
11,753
10,302
10,302
12,590
12,527
13,219
11,985
10,924
12,342
10,818
10,818
13,219
13,152
13,879
12,590
11,469
12,957
11,360
11,360
13,879
13,811
Budget Supervisor (AM)
Code Enforcement Principal (AM)
Enterprise Program Manager (AM)
Facilities Maintenance Manager (AM)
Fleet Services Manager (AM)
10,659
9,341
11,193
9,810
9,341 9,810
Homeless Services Manager (AM) 11,414
11,360
11,985
Information Technology Infrastructure 11,926
Supervisor (AM)
Payroll Manager (AM) 07405
07404
02589
07609
01519
00151
10,659
9,810
11,193
10,302
9,906
11,753
10,818
10,401
12,342
11,028
10,869
10,869
12,342
13,879
11,360
12,342
11,360
10,924
12,957
11,579
11,414
11,414
12,957
14,575
11,926
12,957
11,926
11,469
13,606
12,160
11,985
11,985
13,606
15,304
12,527
Payroll Supervisor (AM)
Permit Services Principal (AM)
Principal Community Planner (AM)
Principal Human Resources Analyst (AM)
Principal Management Analyst (AM)
9,435
11,193
10,003
9,860
11,753
10,501
10,352
10,352
11,753
13,219
10,818
Principal Management Analyst (Excepted) (AM) 00149 9,860 Principal Planner (AM) 02471
06145
01800
11,193
12,590
10,302
Project Management Officer (AM)
Public Affairs Information Officer (Excepted)
(AM)
Risk Management Supervisor (AM) 01751 9,341
7,649
8,641
9,074
9,298
9,298
9,810
8,033
9,074
9,526
9,763
9,763
10,302
8,431
10,818
8,853
11,360
Secretary to the City Manager (Excepted) (AM) 01071 9,298 Senior Budget Analyst (AM) 00494
00482
01541
08595
9,526 10,003
10,501
10,764
10,764
10,501
11,028
11,304
11,304
Senior Financial Analyst (AM)
Senior Human Resources Analyst (AM)
10,003
10,250
Senior Human Resources Communications 10,250
Specialist (AM)
Senior Legal Management Assistant (Excepted)
(AM)
02791 8,641 9,074 9,526 10,003 10,501
Senior Management Analyst (AM) 00152
00153
00477
8,641
8,641
9,298
9,074
9,074
9,763
9,526
9,526
10,003
10,003
10,764
10,501
10,501
11,304
Senior Management Analyst (Excepted) (AM)
Senior Organizational Development and
Training Analyst (AM)
10,250
Senior Risk Management Analyst (AM) 01757
02371
9,298 9,763 10,250
11,469
10,764
12,045
11,304
Supervisor of Inspections (AM) 10,401 10,924 12,654
SANTA ANA MANAGEMENT ASSOCIATION (SAMA) MOU: 2022-2025 70 City Council 43 – 73 6/6/2023

EXHIBIT B

MIDDLE MANAGEMENT

MONTHLY WAGE RATE SCHEDULE
EFFECTIVE JULY 1, 2022 TO JULY 1, 2023
JOB
JOB TITLE CODE 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 Accounting Manager (MM) 01120 10,941 11,216 11,495 11,782 12,079 12,379 12,688 13,006 13,331 13,663 14,003 14,354 14,714 15,081 15,460 15,846 16,242 Administrative Services Manager
(MM)
00190 10,161 10,412 10,670 10,941 11,216 11,495 11,782 12,079 12,379 12,688 13,006 13,331 13,663 14,003 14,354 14,714 15,081 Assistant City Attorney (Excepted)
(MM)
01620 10,161 10,412 10,670 10,941 11,216 11,495 11,782 12,079 12,379 12,688 13,006 13,331 13,663 14,003 14,354 14,714 15,081 Assistant Clerk Of The Council (MM) 01710 9,205 9,434 9,668 9,910 10,161 10,412 10,670 10,941 11,216 11,495 11,782 12,079 12,379 12,688 13,006 13,331 13,663 Assistant Dir of Finance and
Management Svcs (MM)
Assistant Director of Community
Development (MM)
Assistant Director of Parks Rec and
Cmty Svcs (MM)
Assistant Director of Planning and
Building (MM)
Assistant to the City Manager
(Excepted) (MM)
01180 11,782 12,079 12,379 12,688 13,006 13,331 13,663 14,003 14,354 14,714 15,081 15,460 15,846 16,242 16,645 17,063 17,489 02865 11,216 11,495 11,782 12,079 12,379 12,688 13,006 13,331 13,663 14,003 14,354 14,714 15,081 15,460 15,846 16,242 16,645 00380 11,216 11,495 11,782 12,079 12,379 12,688 13,006 13,331 13,663 14,003 14,354 14,714 15,081 15,460 15,846 16,242 16,645 02492 11,782 12,079 12,379 12,688 13,006 13,331 13,663 14,003 14,354 14,714 15,081 15,460 15,846 16,242 16,645 17,063 17,489 07721 10,161 10,412 10,670 10,941 11,216 11,495 11,782 12,079 12,379 12,688 13,006 13,331 13,663 14,003 14,354 14,714 15,081 Benefits & Compensation Manager
(MM)
00474 9,205 9,434 9,668 9,910 10,161 10,412 10,670 10,941 11,216 11,495 11,782 12,079 12,379 12,688 13,006 13,331 13,663 Building Safety Manager (MM) 00940 11,216 11,495 11,782 12,079 12,379 12,688 13,006 13,331 13,663 14,003 14,354 14,714 15,081 15,460 15,846 16,242 16,645 Chief Assistant City Attorney 01650 12,379 12,688 13,006 13,331 13,663 14,003 14,354 14,714 15,081 15,460 15,846 16,242 16,645 17,063 17,489 17,926 18,375 (Excepted) (MM)
City Traffic Engineer (MM) 02150 10,941 11,216 11,495 11,782 12,079 12,379 12,688 13,006 13,331 13,663 14,003 14,354 14,714 15,081 15,460 15,846 16,242 02750 11,216 11,495 11,782 12,079 12,379 12,688 13,006 13,331 13,663 14,003 14,354 14,714 15,081 15,460 15,846 16,242 16,645 07615 10,161 10,412 10,670 10,941 11,216 11,495 11,782 12,079 12,379 12,688 13,006 13,331 13,663 14,003 14,354 14,714 15,081 Code Enforcement Manager (MM)
Community Development Manager
(MM)
Corporate Yard Facilities/Fleet Svcs
Mgr (MM)
Council Services Manager (Excepted)
(MM)
04780 10,161 10,412 10,670 10,941 11,216 11,495 11,782 12,079 12,379 12,688 13,006 13,331 13,663 14,003 14,354 14,714 15,081 00400 10,161 10,412 10,670 10,941 11,216 11,495 11,782 12,079 12,379 12,688 13,006 13,331 13,663 14,003 14,354 14,714 15,081 Deputy City Attorney (Excepted)
(MM)
01610 7,935 8,135 8,343 8,548 8,759 8,980 9,205 9,434 9,668 9,910 10,161 10,412 10,670 10,941 11,216 11,495 11,782 Deputy City Engineer (MM) 00315 10,941 11,216 11,495 11,782 12,079 12,379 12,688 13,006 13,331 13,663 14,003 14,354 14,714 15,081 15,460 15,846 16,242 Deputy Public Works Director / City 00320 11,782 12,079 12,379 12,688 13,006 13,331 13,663 14,003 14,354 14,714 15,081 15,460 15,846 16,242 16,645 17,063 17,489 Engineer (MM)
Deputy Public Works Director / Main
Srvcs Mgr (MM)
Deputy Public Works Director/Constr
Srvcs Mgr (MM)
Deputy Public Works Director/Water
Rsrcs Mgr (MM)
04430 10,670 10,941 11,216 11,495 11,782 12,079 12,379 12,688 13,006 13,331 13,663 14,003 14,354 14,714 15,081 15,460 15,846 02251 11,216 11,495 11,782 12,079 12,379 12,688 13,006 13,331 13,663 14,003 14,354 14,714 15,081 15,460 15,846 16,242 16,645 04410 11,216 11,495 11,782 12,079 12,379 12,688 13,006 13,331 13,663 14,003 14,354 14,714 15,081 15,460 15,846 16,242 16,645 SANTA ANA MANAGEMENT ASSOCIATION (SAMA) MOU: 2022-2025 City Council 43 – 74 6/6/2023 71 JOB
JOB TITLE CODE 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 Economic Development Manager
(MM)
02690 10,161 10,412 10,670 10,941 11,216 11,495 11,782 12,079 12,379 12,688 13,006 13,331 13,663 14,003 14,354 14,714 15,081 Facilities and Fleet Maintenance
Manager (MM)
04376 10,161 10,412 10,670 10,941 11,216 11,495 11,782 12,079 12,379 12,688 13,006 13,331 13,663 14,003 14,354 14,714 15,081 Facilities Maintenance Superintendent
(MM)
04375 9,205 9,434 9,668 9,910 10,161 10,412 10,670 10,941 11,216 11,495 11,782 12,079 12,379 12,688 13,006 13,331 13,663 Homeless Services Division Manager
(MM)
03751 10,161 10,412 10,670 10,941 11,216 11,495 11,782 12,079 12,379 12,688 13,006 13,331 13,663 14,003 14,354 14,714 15,081 Housing Division Manager (MM) 02460 10,161 10,412 10,670 10,941 11,216 11,495 11,782 12,079 12,379 12,688 13,006 13,331 13,663 14,003 14,354 14,714 15,081 Information Services and Network 00960 10,161 10,412 10,670 10,941 11,216 11,495 11,782 12,079 12,379 12,688 13,006 13,331 13,663 14,003 14,354 14,714 15,081 Manager (MM)
Library Operations Manager (MM) 05195
00475
8,980
9,205
9,205
9,434
9,434
9,668
9,668
9,910
9,910 10,161 10,412 10,670 10,941 11,216 11,495 11,782 12,079 12,379 12,688 13,006 13,331 Organizational Development and
Training Manager (MM)
Park Services Superintendent (MM)
10,161 10,412 10,670 10,941 11,216 11,495 11,782 12,079 12,379 12,688 13,006 13,331 13,663 04104 9,205 9,434 9,668 9,910 10,161 10,412 10,670 10,941 11,216 11,495 11,782 12,079 12,379 12,688 13,006 13,331 13,663 Planning Manager (MM) 02500 11,216 11,495 11,782 12,079 12,379 12,688 13,006 13,331 13,663 14,003 14,354 14,714 15,081 15,460 15,846 16,242 16,645 02129 10,941 11,216 11,495 11,782 12,079 12,379 12,688 13,006 13,331 13,663 14,003 14,354 14,714 15,081 15,460 15,846 16,242 00331 10,161 10,412 10,670 10,941 11,216 11,495 11,782 12,079 12,379 12,688 13,006 13,331 13,663 14,003 14,354 14,714 15,081 01945 10,161 10,412 10,670 10,941 11,216 11,495 11,782 12,079 12,379 12,688 13,006 13,331 13,663 14,003 14,354 14,714 15,081 Principal Civil Engineer (MM)
Principal Plan Check Engineer (MM)
Recreation and Community Services
Manager (MM)
Risk Manager (MM) 01750 10,161 10,412 10,670 10,941 11,216 11,495 11,782 12,079 12,379 12,688 13,006 13,331 13,663 14,003 14,354 14,714 15,081 Safety Administrator (MM) 05020 9,205 9,434 9,668 9,910 10,161 10,412 10,670 10,941 11,216 11,495 11,782 12,079 12,379 12,688 13,006 13,331 13,663 Senior Assistant City Attorney
(Excepted) (MM)
01630 11,782 12,079 12,379 12,688 13,006 13,331 13,663 14,003 14,354 14,714 15,081 15,460 15,846 16,242 16,645 17,063 17,489 Strategic Communications Manager
(Excepted) (MM)
02925 9,434 9,668 9,910 10,161 10,412 10,670 10,941 11,216 11,495 11,782 12,079 12,379 12,688 13,006 13,331 13,663 14,003 Transit Program Manager (MM) 00200 10,941 11,216 11,495 11,782 12,079 12,379 12,688 13,006 13,331 13,663 14,003 14,354 14,714 15,081 15,460 15,846 16,242 01080 10,941 11,216 11,495 11,782 12,079 12,379 12,688 13,006 13,331 13,663 14,003 14,354 14,714 15,081 15,460 15,846 16,242 01170 10,161 10,412 10,670 10,941 11,216 11,495 11,782 12,079 12,379 12,688 13,006 13,331 13,663 14,003 14,354 14,714 15,081 Transportation Manager (MM)
Treasury and Customer Services
Manager (MM)
Zoo Manager (MM) 05480 10,161 10,412 10,670 10,941 11,216 11,495 11,782 12,079 12,379 12,688 13,006 13,331 13,663 14,003 14,354 14,714 15,081 SANTA ANA MANAGEMENT ASSOCIATION (SAMA) MOU: 2022-2025 City Council 43 – 75 6/6/2023 72

MIDDLE MANAGEMENT

MONTHLY WAGE RATE SCHEDULE
EFFECTIVE JULY 2, 2023 TO JULY 13, 2024
JOB
JOB TITLE CODE 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 Accounting Manager (MM) 01120 11,269 11,552 11,840 12,135 12,441 12,750 13,069 13,396 13,731 14,073 14,423 14,785 15,155 15,533 15,924 16,321 16,729 Administrative Services Manager
(MM)
00190 10,466 10,724 10,990 11,269 11,552 11,840 12,135 12,441 12,750 13,069 13,396 13,731 14,073 14,423 14,785 15,155 15,533 Assistant City Attorney (Excepted)
(MM)
01620 10,466 10,724 10,990 11,269 11,552 11,840 12,135 12,441 12,750 13,069 13,396 13,731 14,073 14,423 14,785 15,155 15,533 Assistant Clerk Of The Council (MM) 01710 9,481 9,717 9,958 10,207 10,466 10,724 10,990 11,269 11,552 11,840 12,135 12,441 12,750 13,069 13,396 13,731 14,073 Assistant Dir of Finance and
Management Svcs (MM)
Assistant Director of Community
Development (MM)
Assistant Director of Parks Rec and
Cmty Svcs (MM)
Assistant Director of Planning and
Building (MM)
Assistant to the City Manager
(Excepted) (MM)
01180 12,135 12,441 12,750 13,069 13,396 13,731 14,073 14,423 14,785 15,155 15,533 15,924 16,321 16,729 17,144 17,575 18,014 02865 11,552 11,840 12,135 12,441 12,750 13,069 13,396 13,731 14,073 14,423 14,785 15,155 15,533 15,924 16,321 16,729 17,144 00380 11,552 11,840 12,135 12,441 12,750 13,069 13,396 13,731 14,073 14,423 14,785 15,155 15,533 15,924 16,321 16,729 17,144 02492 12,135 12,441 12,750 13,069 13,396 13,731 14,073 14,423 14,785 15,155 15,533 15,924 16,321 16,729 17,144 17,575 18,014 07721 10,466 10,724 10,990 11,269 11,552 11,840 12,135 12,441 12,750 13,069 13,396 13,731 14,073 14,423 14,785 15,155 15,533 Benefits & Compensation Manager
(MM)
00474 9,481 9,717 9,958 10,207 10,466 10,724 10,990 11,269 11,552 11,840 12,135 12,441 12,750 13,069 13,396 13,731 14,073 Building Safety Manager (MM) 00940 11,552 11,840 12,135 12,441 12,750 13,069 13,396 13,731 14,073 14,423 14,785 15,155 15,533 15,924 16,321 16,729 17,144 Chief Assistant City Attorney 01650 12,750 13,069 13,396 13,731 14,073 14,423 14,785 15,155 15,533 15,924 16,321 16,729 17,144 17,575 18,014 18,464 18,926 (Excepted) (MM)
City Traffic Engineer (MM) 02150 11,269 11,552 11,840 12,135 12,441 12,750 13,069 13,396 13,731 14,073 14,423 14,785 15,155 15,533 15,924 16,321 16,729 02750 11,552 11,840 12,135 12,441 12,750 13,069 13,396 13,731 14,073 14,423 14,785 15,155 15,533 15,924 16,321 16,729 17,144 07615 10,466 10,724 10,990 11,269 11,552 11,840 12,135 12,441 12,750 13,069 13,396 13,731 14,073 14,423 14,785 15,155 15,533 Code Enforcement Manager (MM)
Community Development Manager
(MM)
Corporate Yard Facilities/Fleet Svcs
Mgr (MM)
Council Services Manager (Excepted)
(MM)
04780 10,466 10,724 10,990 11,269 11,552 11,840 12,135 12,441 12,750 13,069 13,396 13,731 14,073 14,423 14,785 15,155 15,533 00400 10,466 10,724 10,990 11,269 11,552 11,840 12,135 12,441 12,750 13,069 13,396 13,731 14,073 14,423 14,785 15,155 15,533 Deputy City Attorney (Excepted)
(MM)
01610 8,173 8,379 8,593 8,804 9,022 9,249 9,481 9,717 9,958 10,207 10,466 10,724 10,990 11,269 11,552 11,840 12,135 Deputy City Engineer (MM) 00315 11,269 11,552 11,840 12,135 12,441 12,750 13,069 13,396 13,731 14,073 14,423 14,785 15,155 15,533 15,924 16,321 16,729 Deputy Public Works Director / City 00320 12,135 12,441 12,750 13,069 13,396 13,731 14,073 14,423 14,785 15,155 15,533 15,924 16,321 16,729 17,144 17,575 18,014 Engineer (MM)
Deputy Public Works Director / Main
Srvcs Mgr (MM)
Deputy Public Works Director/Constr
Srvcs Mgr (MM)
Deputy Public Works Director/Water
Rsrcs Mgr (MM)
Economic Development Manager
(MM)
04430 10,990 11,269 11,552 11,840 12,135 12,441 12,750 13,069 13,396 13,731 14,073 14,423 14,785 15,155 15,533 15,924 16,321 02251 11,552 11,840 12,135 12,441 12,750 13,069 13,396 13,731 14,073 14,423 14,785 15,155 15,533 15,924 16,321 16,729 17,144 04410 11,552 11,840 12,135 12,441 12,750 13,069 13,396 13,731 14,073 14,423 14,785 15,155 15,533 15,924 16,321 16,729 17,144 02690 10,466 10,724 10,990 11,269 11,552 11,840 12,135 12,441 12,750 13,069 13,396 13,731 14,073 14,423 14,785 15,155 15,533 SANTA ANA MANAGEMENT ASSOCIATION (SAMA) MOU: 2022-2025 City Council 43 – 76 6/6/2023 73 JOB
JOB TITLE CODE 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 Facilities and Fleet Maintenance
Manager (MM)
04376 10,466 10,724 10,990 11,269 11,552 11,840 12,135 12,441 12,750 13,069 13,396 13,731 14,073 14,423 14,785 15,155 15,533 Facilities Maintenance Superintendent
(MM)
04375 9,481 9,717 9,958 10,207 10,466 10,724 10,990 11,269 11,552 11,840 12,135 12,441 12,750 13,069 13,396 13,731 14,073 Homeless Services Division Manager
(MM)
03751 10,466 10,724 10,990 11,269 11,552 11,840 12,135 12,441 12,750 13,069 13,396 13,731 14,073 14,423 14,785 15,155 15,533 Housing Division Manager (MM) 02460 10,466 10,724 10,990 11,269 11,552 11,840 12,135 12,441 12,750 13,069 13,396 13,731 14,073 14,423 14,785 15,155 15,533 Information Services and Network 00960 10,466 10,724 10,990 11,269 11,552 11,840 12,135 12,441 12,750 13,069 13,396 13,731 14,073 14,423 14,785 15,155 15,533 Manager (MM)
Library Operations Manager (MM) 05195
00475
9,249
9,481
9,481
9,717
9,717
9,958
9,958 10,207 10,466 10,724 10,990 11,269 11,552 11,840 12,135 12,441 12,750 13,069 13,396 13,731 Organizational Development and
Training Manager (MM)
Park Services Superintendent (MM)
10,207 10,466 10,724 10,990 11,269 11,552 11,840 12,135 12,441 12,750 13,069 13,396 13,731 14,073 04104 9,481 9,717 9,958 10,207 10,466 10,724 10,990 11,269 11,552 11,840 12,135 12,441 12,750 13,069 13,396 13,731 14,073 Planning Manager (MM) 02500 11,552 11,840 12,135 12,441 12,750 13,069 13,396 13,731 14,073 14,423 14,785 15,155 15,533 15,924 16,321 16,729 17,144 02129 11,269 11,552 11,840 12,135 12,441 12,750 13,069 13,396 13,731 14,073 14,423 14,785 15,155 15,533 15,924 16,321 16,729 00331 10,466 10,724 10,990 11,269 11,552 11,840 12,135 12,441 12,750 13,069 13,396 13,731 14,073 14,423 14,785 15,155 15,533 01945 10,466 10,724 10,990 11,269 11,552 11,840 12,135 12,441 12,750 13,069 13,396 13,731 14,073 14,423 14,785 15,155 15,533 Principal Civil Engineer (MM)
Principal Plan Check Engineer (MM)
Recreation and Community Services
Manager (MM)
Risk Manager (MM) 01750 10,466 10,724 10,990 11,269 11,552 11,840 12,135 12,441 12,750 13,069 13,396 13,731 14,073 14,423 14,785 15,155 15,533 Safety Administrator (MM) 05020 9,481 9,717 9,958 10,207 10,466 10,724 10,990 11,269 11,552 11,840 12,135 12,441 12,750 13,069 13,396 13,731 14,073 Senior Assistant City Attorney
(Excepted) (MM)
01630 12,135 12,441 12,750 13,069 13,396 13,731 14,073 14,423 14,785 15,155 15,533 15,924 16,321 16,729 17,144 17,575 18,014 Strategic Communications Manager
(Excepted) (MM)
02925 9,717 9,958 10,207 10,466 10,724 10,990 11,269 11,552 11,840 12,135 12,441 12,750 13,069 13,396 13,731 14,073 14,423 Transit Program Manager (MM) 00200 11,269 11,552 11,840 12,135 12,441 12,750 13,069 13,396 13,731 14,073 14,423 14,785 15,155 15,533 15,924 16,321 16,729 01080 11,269 11,552 11,840 12,135 12,441 12,750 13,069 13,396 13,731 14,073 14,423 14,785 15,155 15,533 15,924 16,321 16,729 01170 10,466 10,724 10,990 11,269 11,552 11,840 12,135 12,441 12,750 13,069 13,396 13,731 14,073 14,423 14,785 15,155 15,533 Transportation Manager (MM)
Treasury and Customer Services
Manager (MM)
Zoo Manager (MM) 05480 10,466 10,724 10,990 11,269 11,552 11,840 12,135 12,441 12,750 13,069 13,396 13,731 14,073 14,423 14,785 15,155 15,533 SANTA ANA MANAGEMENT ASSOCIATION (SAMA) MOU: 2022-2025 City Council 43 – 77 6/6/2023 74

MIDDLE MANAGEMENT

MONTHLY WAGE RATE SCHEDULE
EFFECTIVE JULY 14, 2024
JOB
JOB TITLE CODE 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 Accounting Manager (MM) 01120 11,607 11,899 12,195 12,499 12,814 13,133 13,461 13,798 14,143 14,495 14,856 15,229 15,610 15,999 16,402 16,811 17,231 Administrative Services Manager
(MM)
00190 10,780 11,046 11,320 11,607 11,899 12,195 12,499 12,814 13,133 13,461 13,798 14,143 14,495 14,856 15,229 15,610 15,999 Assistant City Attorney (Excepted)
(MM)
01620 10,780 11,046 11,320 11,607 11,899 12,195 12,499 12,814 13,133 13,461 13,798 14,143 14,495 14,856 15,229 15,610 15,999 Assistant Clerk Of The Council (MM) 01710 9,765 10,009 10,257 10,513 10,780 11,046 11,320 11,607 11,899 12,195 12,499 12,814 13,133 13,461 13,798 14,143 14,495 Assistant Dir of Finance and
Management Svcs (MM)
Assistant Director of Community
Development (MM)
Assistant Director of Parks Rec and
Cmty Svcs (MM)
Assistant Director of Planning and
Building (MM)
Assistant to the City Manager
(Excepted) (MM)
01180 12,499 12,814 13,133 13,461 13,798 14,143 14,495 14,856 15,229 15,610 15,999 16,402 16,811 17,231 17,658 18,102 18,554 02865 11,899 12,195 12,499 12,814 13,133 13,461 13,798 14,143 14,495 14,856 15,229 15,610 15,999 16,402 16,811 17,231 17,658 00380 11,899 12,195 12,499 12,814 13,133 13,461 13,798 14,143 14,495 14,856 15,229 15,610 15,999 16,402 16,811 17,231 17,658 02492 12,499 12,814 13,133 13,461 13,798 14,143 14,495 14,856 15,229 15,610 15,999 16,402 16,811 17,231 17,658 18,102 18,554 07721 10,780 11,046 11,320 11,607 11,899 12,195 12,499 12,814 13,133 13,461 13,798 14,143 14,495 14,856 15,229 15,610 15,999 Benefits & Compensation Manager
(MM)
00474 9,765 10,009 10,257 10,513 10,780 11,046 11,320 11,607 11,899 12,195 12,499 12,814 13,133 13,461 13,798 14,143 14,495 Building Safety Manager (MM) 00940 11,899 12,195 12,499 12,814 13,133 13,461 13,798 14,143 14,495 14,856 15,229 15,610 15,999 16,402 16,811 17,231 17,658 Chief Assistant City Attorney 01650 13,133 13,461 13,798 14,143 14,495 14,856 15,229 15,610 15,999 16,402 16,811 17,231 17,658 18,102 18,554 19,018 19,494 (Excepted) (MM)
City Traffic Engineer (MM) 02150 11,607 11,899 12,195 12,499 12,814 13,133 13,461 13,798 14,143 14,495 14,856 15,229 15,610 15,999 16,402 16,811 17,231 02750 11,899 12,195 12,499 12,814 13,133 13,461 13,798 14,143 14,495 14,856 15,229 15,610 15,999 16,402 16,811 17,231 17,658 07615 10,780 11,046 11,320 11,607 11,899 12,195 12,499 12,814 13,133 13,461 13,798 14,143 14,495 14,856 15,229 15,610 15,999 Code Enforcement Manager (MM)
Community Development Manager
(MM)
Corporate Yard Facilities/Fleet Svcs
Mgr (MM)
Council Services Manager (Excepted)
(MM)
04780 10,780 11,046 11,320 11,607 11,899 12,195 12,499 12,814 13,133 13,461 13,798 14,143 14,495 14,856 15,229 15,610 15,999 00400 10,780 11,046 11,320 11,607 11,899 12,195 12,499 12,814 13,133 13,461 13,798 14,143 14,495 14,856 15,229 15,610 15,999 Deputy City Attorney (Excepted)
(MM)
01610 8,418 8,630 8,851 9,068 9,293 9,526 9,765 10,009 10,257 10,513 10,780 11,046 11,320 11,607 11,899 12,195 12,499 Deputy City Engineer (MM) 00315 11,607 11,899 12,195 12,499 12,814 13,133 13,461 13,798 14,143 14,495 14,856 15,229 15,610 15,999 16,402 16,811 17,231 Deputy Public Works Director / City 00320 12,499 12,814 13,133 13,461 13,798 14,143 14,495 14,856 15,229 15,610 15,999 16,402 16,811 17,231 17,658 18,102 18,554 Engineer (MM)
Deputy Public Works Director / Main
Srvcs Mgr (MM)
Deputy Public Works Director/Constr
Srvcs Mgr (MM)
Deputy Public Works Director/Water
Rsrcs Mgr (MM)
Economic Development Manager
(MM)
04430 11,320 11,607 11,899 12,195 12,499 12,814 13,133 13,461 13,798 14,143 14,495 14,856 15,229 15,610 15,999 16,402 16,811 02251 11,899 12,195 12,499 12,814 13,133 13,461 13,798 14,143 14,495 14,856 15,229 15,610 15,999 16,402 16,811 17,231 17,658 04410 11,899 12,195 12,499 12,814 13,133 13,461 13,798 14,143 14,495 14,856 15,229 15,610 15,999 16,402 16,811 17,231 17,658 02690 10,780 11,046 11,320 11,607 11,899 12,195 12,499 12,814 13,133 13,461 13,798 14,143 14,495 14,856 15,229 15,610 15,999 SANTA ANA MANAGEMENT ASSOCIATION (SAMA) MOU: 2022-2025 City Council 43 – 78 6/6/2023 75 JOB
JOB TITLE CODE 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 Facilities and Fleet Maintenance
Manager (MM)
04376 10,780 11,046 11,320 11,607 11,899 12,195 12,499 12,814 13,133 13,461 13,798 14,143 14,495 14,856 15,229 15,610 15,999 Facilities Maintenance Superintendent
(MM)
04375 9,765 10,009 10,257 10,513 10,780 11,046 11,320 11,607 11,899 12,195 12,499 12,814 13,133 13,461 13,798 14,143 14,495 Homeless Services Division Manager
(MM)
03751 10,780 11,046 11,320 11,607 11,899 12,195 12,499 12,814 13,133 13,461 13,798 14,143 14,495 14,856 15,229 15,610 15,999 Housing Division Manager (MM) 02460 10,780 11,046 11,320 11,607 11,899 12,195 12,499 12,814 13,133 13,461 13,798 14,143 14,495 14,856 15,229 15,610 15,999 Information Services and Network 00960 10,780 11,046 11,320 11,607 11,899 12,195 12,499 12,814 13,133 13,461 13,798 14,143 14,495 14,856 15,229 15,610 15,999 Manager (MM)
Library Operations Manager (MM) 05195
00475
9,526
9,765
9,765 10,009 10,257 10,513 10,780 11,046 11,320 11,607 11,899 12,195 12,499 12,814 13,133 13,461 13,798 14,143 Organizational Development and
Training Manager (MM)
Park Services Superintendent (MM)
10,009 10,257 10,513 10,780 11,046 11,320 11,607 11,899 12,195 12,499 12,814 13,133 13,461 13,798 14,143 14,495 04104 9,765 10,009 10,257 10,513 10,780 11,046 11,320 11,607 11,899 12,195 12,499 12,814 13,133 13,461 13,798 14,143 14,495 Planning Manager (MM) 02500 11,899 12,195 12,499 12,814 13,133 13,461 13,798 14,143 14,495 14,856 15,229 15,610 15,999 16,402 16,811 17,231 17,658 02129 11,607 11,899 12,195 12,499 12,814 13,133 13,461 13,798 14,143 14,495 14,856 15,229 15,610 15,999 16,402 16,811 17,231 00331 10,780 11,046 11,320 11,607 11,899 12,195 12,499 12,814 13,133 13,461 13,798 14,143 14,495 14,856 15,229 15,610 15,999 01945 10,780 11,046 11,320 11,607 11,899 12,195 12,499 12,814 13,133 13,461 13,798 14,143 14,495 14,856 15,229 15,610 15,999 Principal Civil Engineer (MM)
Principal Plan Check Engineer (MM)
Recreation and Community Services
Manager (MM)
Risk Manager (MM) 01750 10,780 11,046 11,320 11,607 11,899 12,195 12,499 12,814 13,133 13,461 13,798 14,143 14,495 14,856 15,229 15,610 15,999 Safety Administrator (MM) 05020 9,765 10,009 10,257 10,513 10,780 11,046 11,320 11,607 11,899 12,195 12,499 12,814 13,133 13,461 13,798 14,143 14,495 Senior Assistant City Attorney
(Excepted) (MM)
Strategic Communications Manager
(Excepted) (MM)
01630 12,499 12,814 13,133 13,461 13,798 14,143 14,495 14,856 15,229 15,610 15,999 16,402 16,811 17,231 17,658 18,102 18,554 02925 10,009 10,257 10,513 10,780 11,046 11,320 11,607 11,899 12,195 12,499 12,814 13,133 13,461 13,798 14,143 14,495 14,856 Transit Program Manager (MM) 00200 11,607 11,899 12,195 12,499 12,814 13,133 13,461 13,798 14,143 14,495 14,856 15,229 15,610 15,999 16,402 16,811 17,231 01080 11,607 11,899 12,195 12,499 12,814 13,133 13,461 13,798 14,143 14,495 14,856 15,229 15,610 15,999 16,402 16,811 17,231 01170 10,780 11,046 11,320 11,607 11,899 12,195 12,499 12,814 13,133 13,461 13,798 14,143 14,495 14,856 15,229 15,610 15,999 Transportation Manager (MM)
Treasury and Customer Services
Manager (MM)
Zoo Manager (MM) 05480 10,780 11,046 11,320 11,607 11,899 12,195 12,499 12,814 13,133 13,461 13,798 14,143 14,495 14,856 15,229 15,610 15,999 SANTA ANA MANAGEMENT ASSOCIATION (SAMA) MOU: 2022-2025 City Council 43 – 79 6/6/2023 76 Resolution 2023-XXX

Page 1 of 11 ends

RESOLUTION NO. 2023-XXX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SANTA ANA TO EFFECT CERTAIN CHANGES TO THE CITY’S

CLASSIFICATION AND COMPENSATION PLAN

BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS FOLLOWS:

Section 1. The City Council of the City of Santa Ana hereby finds, determines, and declares as follows:

A. Section 1004 of the City Charter of the City of Santa Ana requires the City Manager to prepare, install, and maintain a position classification and pay plan subject to civil service rules and regulations and the approval of the City Council.

B. It is the City’s practice to assign job titles that reflect the duties and responsibilities of the classification and are consistent with other classifications within the City’s organizational structure, as well as comparable job titles in the labor market, while maintaining internal pay equity relationships and attracting and retaining qualified candidates.

C. The City Council regularly amends the City’s classification and compensation plan for all full-time and part-time classifications of officers and employees of the City of Santa Ana.

D. On June 1, 2021, the City Council adopted Resolution 2021-026 establishing and delineating the compensation and benefit plans for classifications designated as Unrepresented Confidential Middle-Management (CMM) and Unrepresented Confidential Administrative Management (CAM) affording these classifications the same provisions and/or changes in salaries, compensation, and other benefits, unless specified otherwise, as provided to classifications represented by the Santa Ana Management Association (SAMA).

E. The City has reached an agreement with SAMA for a new memorandum of understanding which includes a three percent (3%) salary increase retroactively effective July 1, 2022, a three percent (3%) salary increase effective the first full pay period after July 1, 2023, and a three percent (3%) salary increase effective the first full pay period after July 1, 2024.

F. It is now desired to amend the City’s classification and compensation plan.

City Council 43 – 80 6/6/2023
Resolution 2023-XXX

Page 2 of 11 ends

Section 2. The Santa Ana City Council amends the City’s classification and compensation plan as follows:

A. Changing the compensation of the following classifications to the pay rates listed retroactively effective July 1, 2022:

UNIT JOB TITLE SRR BASIS STEP RATE
A $9,429
B $9,898
C $10,395
D $10,915
Unrepresented
CAM
Principal Employee Relations Analyst
(CAM) 737 Monthly
E $11,462
A $8,764
B $9,203
C $9,661
D $10,146
Unrepresented
CAM
Senior Employee Relations Analyst
(CAM) 722 Monthly
E $10,655
1 $11,216
2 $11,495
3 $11,782
4 $12,079
5 $12,379
6 $12,688
7 $13,006
8 $13,331
9 $13,663
10 $14,003
11 $14,354
12 $14,714
13 $15,081
14 $15,460
15 $15,846
16 $16,242
Unrepresented
CMM
Assistant Director of Human Resources
(CMM) 26 Monthly
17 $16,645
City Council 43 – 81 6/6/2023
Resolution 2023-XXX

Page 3 of 11 ends

1 $12,379
2 $12,688
3 $13,006
4 $13,331
5 $13,663
6 $14,003
7 $14,354
8 $14,714
9 $15,081
10 $15,460
11 $15,846
12 $16,242
13 $16,645
14 $17,063
15 $17,489
16 $17,926
Unrepresented
CMM
Chief Assistant City Attorney ‐
Employee Relations (Excepted) (CMM) 30 Monthly
17 $18,375
1 $10,161
2 $10,412
3 $10,670
4 $10,941
5 $11,216
6 $11,495
7 $11,782
8 $12,079
9 $12,379
10 $12,688
11 $13,006
12 $13,331
13 $13,663
14 $14,003
15 $14,354
16 $14,714
Unrepresented
CMM Employee Relations Manager (CMM) 22 Monthly
17 $15,081
City Council 43 – 82 6/6/2023
Resolution 2023-XXX

Page 4 of 11 ends

1 $10,161
2 $10,412
3 $10,670
4 $10,941
5 $11,216
6 $11,495
7 $11,782
8 $12,079
9 $12,379
10 $12,688
11 $13,006
12 $13,331
13 $13,663
14 $14,003
15 $14,354
16 $14,714
Unrepresented
CMM
Human Resources Operations
Manager (CMM) 22 Monthly
17 $15,081
1 $11,782
2 $12,079
3 $12,379
4 $12,688
5 $13,006
6 $13,331
7 $13,663
8 $14,003
9 $14,354
10 $14,714
11 $15,081
12 $15,460
13 $15,846
14 $16,242
15 $16,645
16 $17,063
Unrepresented
CMM
Senior Assistant City Attorney ‐
Employee Relations (Excepted) (CMM) 28 Monthly
17 $17,489
City Council 43 – 83 6/6/2023
Resolution 2023-XXX

Page 5 of 11 ends

B. Changing the compensation of the following classifications to the pay rates listed effective July 2, 2023:

UNIT JOB TITLE SRR BASIS STEP RATE
A $9,712
B $10,195
C $10,707
D $11,242
Unrepresented
CAM
Principal Employee Relations Analyst
(CAM) 737 Monthly
E $11,806
A $9,027
B $9,479
C $9,951
D $10,450
Unrepresented
CAM
Senior Employee Relations Analyst
(CAM) 722 Monthly
E $10,975
1 $11,552
2 $11,840
3 $12,135
4 $12,441
5 $12,750
6 $13,069
7 $13,396
8 $13,731
9 $14,073
10 $14,423
11 $14,785
12 $15,155
13 $15,533
14 $15,924
15 $16,321
16 $16,729
Unrepresented
CMM
Assistant Director of Human Resources
(CMM) 26 Monthly
17 $17,144
City Council 43 – 84 6/6/2023
Resolution 2023-XXX

Page 6 of 11 ends

1 $12,750
2 $13,069
3 $13,396
4 $13,731
5 $14,073
6 $14,423
7 $14,785
8 $15,155
9 $15,533
10 $15,924
11 $16,321
12 $16,729
13 $17,144
14 $17,575
15 $18,014
16 $18,464
Unrepresented
CMM
Chief Assistant City Attorney ‐
Employee Relations (Excepted) (CMM) 30 Monthly
17 $18,926
1 $10,466
2 $10,724
3 $10,990
4 $11,269
5 $11,552
6 $11,840
7 $12,135
8 $12,441
9 $12,750
10 $13,069
11 $13,396
12 $13,731
13 $14,073
14 $14,423
15 $14,785
16 $15,155
Unrepresented
CMM Employee Relations Manager (CMM) 22 Monthly
17 $15,533
City Council 43 – 85 6/6/2023
Resolution 2023-XXX

Page 7 of 11 ends

1 $10,466
2 $10,724
3 $10,990
4 $11,269
5 $11,552
6 $11,840
7 $12,135
8 $12,441
9 $12,750
10 $13,069
11 $13,396
12 $13,731
13 $14,073
14 $14,423
15 $14,785
16 $15,155
Unrepresented
CMM
Human Resources Operations
Manager (CMM) 22 Monthly
17 $15,533
1 $12,135
2 $12,441
3 $12,750
4 $13,069
5 $13,396
6 $13,731
7 $14,073
8 $14,423
9 $14,785
10 $15,155
11 $15,533
12 $15,924
13 $16,321
14 $16,729
15 $17,144
16 $17,575
Unrepresented
CMM
Senior Assistant City Attorney ‐
Employee Relations (Excepted) (CMM) 28 Monthly
17 $18,014
City Council 43 – 86 6/6/2023
Resolution 2023-XXX

Page 8 of 11 ends

C. Changing the compensation of the following classifications to the pay rates listed effective July 14, 2024:

UNIT JOB TITLE SRR BASIS STEP RATE
A $10,003
B $10,501
C $11,028
D $11,579
Unrepresented
CAM
Principal Employee Relations Analyst
(CAM) 737 Monthly
E $12,160
A $9,298
B $9,763
C $10,250
D $10,764
Unrepresented
CAM
Senior Employee Relations Analyst
(CAM) 722 Monthly
E $11,304
1 $11,899
2 $12,195
3 $12,499
4 $12,814
5 $13,133
6 $13,461
7 $13,798
8 $14,143
9 $14,495
10 $14,856
11 $15,229
12 $15,610
13 $15,999
14 $16,402
15 $16,811
16 $17,231
Unrepresented
CMM
Assistant Director of Human Resources
(CMM) 26 Monthly
17 $17,658
City Council 43 – 87 6/6/2023
Resolution 2023-XXX

Page 9 of 11 ends

1 $13,133
2 $13,461
3 $13,798
4 $14,143
5 $14,495
6 $14,856
7 $15,229
8 $15,610
9 $15,999
10 $16,402
11 $16,811
12 $17,231
13 $17,658
14 $18,102
15 $18,554
16 $19,018
Unrepresented
CMM
Chief Assistant City Attorney ‐
Employee Relations (Excepted) (CMM) 30 Monthly
17 $19,494
1 $10,780
2 $11,046
3 $11,320
4 $11,607
5 $11,899
6 $12,195
7 $12,499
8 $12,814
9 $13,133
10 $13,461
11 $13,798
12 $14,143
13 $14,495
14 $14,856
15 $15,229
16 $15,610
Unrepresented
CMM Employee Relations Manager (CMM) 22 Monthly
17 $15,999
City Council 43 – 88 6/6/2023
Resolution 2023-XXX

Page 10 of 11 ends

1 $10,780
2 $11,046
3 $11,320
4 $11,607
5 $11,899
6 $12,195
7 $12,499
8 $12,814
9 $13,133
10 $13,461
11 $13,798
12 $14,143
13 $14,495
14 $14,856
15 $15,229
16 $15,610
Unrepresented
CMM
Human Resources Operations
Manager (CMM) 22 Monthly
17 $15,999
1 $12,499
2 $12,814
3 $13,133
4 $13,461
5 $13,798
6 $14,143
7 $14,495
8 $14,856
9 $15,229
10 $15,610
11 $15,999
12 $16,402
13 $16,811
14 $17,231
15 $17,658
16 $18,102
Unrepresented
CMM
Senior Assistant City Attorney ‐
Employee Relations (Excepted) (CMM) 28 Monthly
17 $18,554
City Council 43 – 89 6/6/2023
Resolution 2023-XXX

Page 11 of 11 ends

Section 3. This resolution is to be operative from and after the date in which it is adopted.

ADOPTED this 6th day of June 2023.
___________________________
Valerie Amezcua
Mayor
APPROVED AS TO FORM:

Sonia R. Carvalho
City Attorney
By: __________________
Laura A. Rossini
Chief Assistant City Attorney – Employee Relations
AYES: Councilmembers
NOES: Councilmembers
ABSTAIN: Councilmembers
NOT PRESENT: Councilmembers

CERTIFICATE OF ATTESTATION AND ORIGINALITY
I, Jennifer Hall, City Clerk, do hereby attest to and certify the attached Resolution No. 2023- ___ to be the original resolution adopted by the City Council of the City of Santa Ana on June 6, 2023.

Date: ___________________ ____________________________
Jennifer Hall
City Clerk
City of Santa Ana
City Council 43 – 90 6/6/2023
Finance and Management Services
www.santa-ana.org/finance
Item # 44
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
June 6, 2023
TOPIC: Annual Statement of Investment Policy

AGENDA TITLE
Adopt a Resolution Approving the City’s Annual Statement of Investment Policy 2023- 2024; Receive and File Annual Statement of Investment Policy 2023-2024.

RECOMMENDED ACTION

1. Adopt a Resolution approving the City’s 2023-2024 Investment Policy.

2. Receive and file the Annual Statement of Investment Policy 2023-2024.

DISCUSSION
In accordance with State law, the Finance and Management Services Agency annually submits a resolution approving the City’s Investment Policy (Exhibit 1) and the Annual Statement of Investment (Exhibit 2).

The investment policy outlines the following primary goals:
• To assure compliance with all Federal, State, and local laws governing the investment of monies;
• To provide for the safety of principal;
• To provide for the maintenance of sufficient liquidity; and • To provide an investment return within the parameters of the Statement of Investment Policy and Investment Portfolio guidelines.

The investment policy applies to all financial assets of the City with the exception of individual employee retirement contribution funds and deferred compensation, which are specifically excluded. Bond Proceeds are restricted and are invested in compliance with this investment policy following the specific requirements of their applicable bond resolutions. Finance investment staff continuously evaluates the City’s policy with regards to industry standards and best practices to determine if any newly adopted state rules or regulations are required to be incorporated within the document or if any industry enhancements are recommended. The current investment policy was previously submitted to the California Municipal Treasurers Association (CMTA) for review and to receive re-certification. CMTA re-certification was received May 31, 2022.

In FY 2023-24, the City of Santa Ana Investment Policy will be submitted for recertification from the Association of Public Treasurers of the United States & Canada City Council 44 – 1 6/6/2023
Annual Statement of Investment Policy
June 06, 2023

Page 2 ends

(APTUS&C), so that Santa Ana’s investment policy can be certified at the international North American level and at the state level with CMTA. If re-certified by APTUS&C, the City’s investment policy will join only a handful of California cities that hold such dual certification.

Both certification bodies recommend an annual evaluation of investment policies for local public agencies. However, unless there are significant legislative changes, alterations in industry standards, or substantive modifications, the submission for recertification should be considered only every 3 to 5 years. This year, staff recommendations for changes have been minimal and primarily non-substantial in nature. The recommended City of Santa Ana Investment Policy Statement for 2023- 2024 incorporates these changes, which are listed below.

These changes continue to reflect updated certification organization requirements mirroring the policy consensus of the APTUS&C and CMTA. The changes include, but are not limited to the following updates:
• Update Section 8 – Authorized and Suitable Investments to include California Cooperative Liquid Assets Securities System (CLASS) Prime Fund as an allowable investment instrument.
• Update Section 7.3 – Authorized Financial Institution and Qualified BrokerDealers to increase Qualified Broker-Dealer certifications from bi-annual to triennial.
• Reflect the update to California Government Code Section 53646(b)(1) to increase local agency reporting requirements by 15 days, from 30 to 45 days following the end of the quarter.
• Reflect the update of corresponding California Debt and Investment Advisory Commission (CDIAC) Guidelines for Allowable Investment Instruments per State Government Code (As of January 1, 2023) applicable to all Local Agencies, and legislative California Investment Code Abstracts.

Staff recommends that City Council adopt a Resolution approving the City’s 2023-24 Investment Policy. On the July 18, 2023 City Council agenda, staff plans to recommend adoption of a Resolution to approve CLASS Prime Fund as an allowable investment instrument.

EXHIBIT(S)

1. Resolution

2. Annual Statement of Investment Policy
Submitted By: Kathryn Downs, FMSA Executive Director
Approved By: Kristine Ridge, City Manager
City Council 44 – 2 6/6/2023
EXHIBIT 1
Resolution No. 2023-XX

Page 1 of 2 ends

RESOLUTION NO. 2023-XX

A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF SANTA ANA APPROVING THE CITY’S

STATEMENT OF INVESTMENT POLICY

BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS FOLLOWS:

Section 1. The City Council of Santa Ana hereby finds, determines and declares as follows:

A. California Government Code §53646, provides that each city may have a written statement of investment policy to govern investment of the City’s monies.

B. Pursuant to §53646, the City Treasurer shall annually submit a Statement of Investment Policy for City Council consideration.

C. The City Treasurer has submitted the attached Statement of Investment Policy to this Council at its regular meeting of June 06, 2023, for its consideration.

Section 2. The City Council of the City of Santa Ana has duly considered and approves the City’s Statement of Investment Policy submitted by the City Treasurer.

Section 3. The City Treasurer shall submit quarterly reports to the City Council stating all investments made in the preceding quarter and that such investments have been made in conformance with the City’s investment policy.

Section 4. This Resolution shall take effect immediately upon its adoption by the City Council, and the Clerk of the Council shall attest to and certify the vote adopting this Resolution.

City Council 44 – 3 6/6/2023
Resolution No. 2023-XX

Page 2 of 2 ends

ADOPTED this _____day of __________, 2023.
_____________________
Valerie Amezcua
Mayor
APPROVED AS TO FORM:

Sonia Carvalho, City Attorney
By:________________________
Jonathan T. Martinez
Assistant City Attorney
AYES: Councilmembers: __________________________
NOES: Councilmembers: __________________________
ABSTAIN: Councilmembers: __________________________
NOT PRESENT: Councilmembers: __________________________

CERTIFICATION OF ATTESTATION AND ORIGINALITY
I, JENNIFER L. HALL, Clerk of the Council, do hereby attest to and certify the attached Resolution No. ___________ to be the original resolution adopted by the City Council of the City of Santa Ana on ________________, 2023.

Date: ____________________ ________________________________ Jennifer L. Hall, Clerk of the Council
City of Santa Ana
City Council 44 – 4 6/6/2023
City of Santa Ana
EXHIBIT 2
JUNE 06, 2023

INVESTMENT POLICY
STATEMENT 2023-24
City Council 44 – 5 6/6/2023

TABLE OF CONTENTS
Page
Introduction.................................................................................................................................1

1.0 Policy ...............................................................................................................................1

2.0 Scope...............................................................................................................................1

3.0 Prudence..........................................................................................................................2

4.0 Objectives ........................................................................................................................3

5.0 Delegation of Authority .....................................................................................................6

6.0 Ethics and Conflicts of Interest .........................................................................................7

7.0 Authorized Financial Institutions and Qualified Broker-Dealers............................................8

8.0 Authorized and Suitable Investments ..............................................................................9

9.0 Prohibited Investments and Investment Practices...........................................................14

10.0 Investment Pools/Mutual Funds......................................................................................15

11.0 Collateralization/Security for Deposit of Public Funds......................................................16

12.0 Safekeeping and Custody...............................................................................................17

13.0 Diversification.................................................................................................................17

14.0 Maximum Maturities .......................................................................................................18

15.0 Internal Controls.............................................................................................................18

16.0 Performance Standards..................................................................................................19

17.0 Reporting........................................................................................................................20

18.0 Policy Considerations .....................................................................................................21

19.0 Policy Review, Certification, and Adoption ......................................................................21

20.0 Appendices and Glossaries ............................................................................................22 Appendix I - (Table of Appendices) / California Investment Code Abstracts....................25 Appendix II - Local Agency Investment Guidelines / Allowable Investment Guidelines .... i Appendix III - Glossary of Common Public Local Agency Investment Terms .................. A Appendix IV - Glossary of Common Public Local Agency Investment Terms.....................I Appendix V – Broker/Dealer Questionnaire and Certification Form…………………...........M City Council 44 – 6 6/6/2023
July 1, 2023 -
June 30, 2024
City of Santa - Annual
Statement of Investment Policy Page 1

CITY OF SANTA ANA

ANNUAL STATEMENT OF INVESTMENT POLICY
JULY 1, 2023 – JUNE 30, 2024
INTRODUCTION: The purpose of this Statement of Investment Policy is intended to provide specific criteria for the prudent investment of City of Santa Ana (City) funds and to set investment objectives, policies, establish guidelines, and define responsibilities for the investment of idle or unexpended funds for the City. The ultimate investment goal is to enhance the economic status of the City while protecting funds under management and meeting the daily cash flow demands of the City.

1.0 POLICY
The policy of the City of Santa Ana is to invest idle or unexpended funds within the scope of this investment policy in a prudent and suitable manner that will provide, within the parameters of this investment policy, the highest reasonable investment return relative to the risk being assumed while maintaining maximum security and meeting all cash flow demands. This policy is intended to comply with Federal law and the Code of California for investment of public funds. In instances in which this policy is more restrictive than Federal or State law, this policy shall be controlling.

This policy is fixed and general in nature; it defines authorized investments and guides the investment decisions and security selection process. The City’s Investment Policy will be regularly reviewed and adjusted to create an investment portfolio that is suitable for the City given current conditions.

2.0 SCOPE

2.1 Applicability of Investment Policy
This investment policy applies to all funds and investment transactions of the City.

These funds are accounted for in the Annual Comprehensive Financial Report (ACFR), which includes the following:
• General Fund
• Special Revenue Funds
• Capital Projects Funds (includes restricted bond proceeds) • Enterprise Funds (includes restricted bond proceeds)
• Trust and Agency Funds
• Internal Service Funds
• Any new fund created by the City of Santa Ana, unless specifically exempted
City Council 44 – 7 6/6/2023
July 1, 2023 -
June 30, 2024
City of Santa - Annual
Statement of Investment Policy Page 2
The restricted bond proceeds are invested in compliance with this investment policy and applicable bond resolutions. Individual employee retirement contribution funds and deferred compensation are excluded from this policy.

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

3.0 PRUDENCE

3.1 Standard of Care – Prudent Investor
The City investment program shall be managed in a professional and prudent manner worthy of the public trust and review. The standard of prudence to be used by City Investment Officials shall be the "prudent investor rule" standard and shall be applied in the context of managing the overall investment portfolio.

The “prudent investor rule” provides, pursuant to California Government Code Section 53600.3, that investments shall be made with judgment and care. When investing, reinvesting or managing public funds a trustee shall act with care, skill, prudence and diligence under circumstances then prevailing. Investment officers acting in accordance with written procedures and this investment policy and exercising due diligence shall be relieved of personal responsibility for an individual security's credit risk or market price changes, provided deviations from exceptions are reported in a timely fashion and the liquidity and the sale of securities are carried out in accordance with the terms of this policy.

The City is governed by the California Government Code, Sections 16429.1 and Title 5, Division 2, Part 1, Chapter 4, entitled Financial Affairs, commencing with section 53630.

Each investment transaction and the entire portfolio must comply with California Government Code, Sections 53600 and 53635 et seq. and this policy.

3.2 Written Investment Procedures
City Investment Officials shall establish written procedures consistent with this investment policy for the operation of the investment program. Procedures should include but not be limited to: authorized personnel, segregation of duties, internal controls, wire transfer agreements, daily cash flow review, basis for awarding bids, portfolio inventory, and reporting. The procedures document is intended to provide guidance for staff and to provide continuity in the event of an interruption of services of the Treasury and Customer Services Manager and/or Assistant Finance Director.

City Council 44 – 8 6/6/2023
July 1, 2023 -
June 30, 2024
City of Santa - Annual
Statement of Investment Policy Page 3

4.0 OBJECTIVES
The primary objectives, in priority order, for the City of Santa Ana’s investment activities shall be Safety, Liquidity, and Yield:

4.1 Safety of Principal
Safety of principal is the foremost objective of the City of Santa Ana, care must be taken to ensure the preservation of capital and the protection of principal.

Each investment transaction shall be undertaken in a manner that seeks to ensure preservation of capital in the overall portfolio. The objective will be to mitigate credit risk and interest rate risk by following guideline listed below.

A. Credit Risk
Credit Risk is the risk of loss due to the failure of the security issuer or backer to redeem the outstanding debt at the stated maturity date. Credit risk also applies to the overall market perception of the financial strength and capacity of the issuer. The City of Santa Ana will minimize credit risk by:
i. Limiting investments to authorized investments as set forth in Section 10.0 of this investment policy;
ii. Pre-qualifying the financial institutions, broker-dealers, intermediaries, and advisors with which the City will do business; iii. Diversifying the investment portfolio so that potential losses on individual securities will be minimized.
iv. Holding a minimum percentage of the total portfolio in highly marketable short-term treasuries, checking with interest, government pooled account, or a combination of all three. The minimum percentage shall be set monthly by the FMSA Investment Advisory Committee based on a rolling twenty-four month analysis of the City’s minimum cash position requirements adjusted for any exceptional anticipated cash out flows.

B. Market or Interest Rate Risk
Market or interest rate risk is the risk that the market value of securities in the portfolio may fall due to changes in general interest rates. The City of Santa Ana will minimize interest market interest rates, by:
i. Structuring the investment portfolio so that securities mature to meet cash requirements for ongoing operations, thereby avoiding the need to sell securities on the open market prior to maturity, and
ii. Purchasing investments with the intent to hold until maturity; and
City Council 44 – 9 6/6/2023
July 1, 2023 -
June 30, 2024
City of Santa - Annual
Statement of Investment Policy Page 4
iii. By investing operating funds primarily in shorter-term securities, money market mutual funds, or similar investment pools and limiting the average maturity of the portfolio in accordance with this policy.

4.2 Liquidity
The investment portfolio shall remain sufficiently liquid to meet all operating requirements that may be reasonably anticipated. This is accomplished by structuring the portfolio so that securities mature concurrent with cash needs to meet anticipated demands (static liquidity). Furthermore, since all possible cash demands cannot be anticipated, the portfolio should consist largely of securities with active secondary or resale markets (dynamic liquidity). The City’s cash flow shall be updated on a daily basis and will be considered prior to the investment of securities, which will reduce the necessity to sell investments for liquidity purposes.

4.3. Yield (Return on Investment)
The City's investment portfolio shall be designed with the objective of attaining a market-average rate of return throughout budgetary and economic cycles taking into account the investment risk constraints and liquidity needs. The return on investments is to be accorded secondary importance compared to the safety and liquidity objectives described above. The core of investments will focus on relatively low risk securities with an expectation of earning a reasonable return relative to the risk being assumed. It is the general policy of the City to hold investments until market value equals or exceeds amortized cost or book value of the security. Securities shall not be sold prior to maturity with the following exceptions:

A. a declining credit security could be sold early to minimize loss of principal;
B. a simultaneous purchase of a security and the sale of another (security swap) to enhance the quality, yield, or target duration in the portfolio; or
C. a sale of a specific security prior to its maturity and a capital gain or loss recorded in order to improve the credit quality, liquidity, or rate of return of the portfolio in response to market conditions and/or City risk preferences;
D. general liquidity needs of the investment portfolio require that a security be sold;
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E. pre-payment of City debt or contribution servicing obligation. In the event the City is presented with an option for prepayment of a City debt or contribution servicing obligation, the following analysis will be conducted by with regards to a comparison between the amortized savings, which may be realized by exercising such prepayment option and:
i. the current portfolio yield;
ii. the trend of the debt or contribution servicing obligation; iii. whether variances in the trend are substantial;
iv. the City’s net cash position; and
v. the market value of investment instrument(s) recommended by staff to be liquidated to fulfill a prepayment election.

Upon completion of said analysis, a recommendation shall be presented to the FMSA Investment Advisory Committee for consideration and submittal to the Executive Director of Finance and Management Services Agency for his/her approval or rejection.

When selling a security prior to maturity, City Investment Officials and/or officers (see generally subsection 5.1 et seq. - Investment Authority and Responsibility) must be prepared to justify the reasons and explain any gains or losses.

Compliance with the investment policy does not measure return, but rather manages risk. Policy compliance does not provide a benchmark to meet or exceed, but is a model to follow. The City will benchmark its investment portfolio performance to the appropriate “treasuries constant maturity” rate based on portfolio maturities of the investment plan.

The City shall strive to maintain one hundred percent (100%) investment of idle funds after consideration for a compensating balance to cover the cost of services provided by the City’s depository bank. The funds available for investment are determined by cash flow projections updated daily.

Investments are monitored so that legal limits on types of investments are not exceeded.

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5.0 DELGATION OF AUTHORITY

5.1 Investment Authority and Responsibility
The authority for conducting investment transactions resides with the Executive Director of Finance and Management Services Agency (FMSA) as chief fiscal officer and ex officio City Treasurer. The Executive Director for (FMSA) under the general direction of the City Council, shall be responsible for all investment transactions undertaken and shall establish a system of controls to regulate the investment activities of subordinate officials.

5.2 Delegation of Authority
The Executive Director for FMSA or her/his designees (Investment Officials) shall invest all funds for the City in accordance with the City adopted investment policy.

The Executive Director for FMSA hereby delegates day-to-day responsibility for the investment of City funds to the FMSA Financial Analyst. Managerial and supervisory responsibility for the investment of City funds may be held by either the Assistant Director of Finance and Management Services (Assistant Director) or the Treasury and Customer Services Manager (Treasury Manager). Each designee shall act in accordance with the established policies and internal controls set forth in the investment policy.

5.3 Assignment of Activities
Supporting and ancillary activities, including but not limited to: cash flow analysis, municipal or corporate bond credit worthiness evaluation, investment risk assessment, portfolio analysis, purchase and sale recommendation, safekeeping, policy and investment procedures review recommendation, and monthly and quarterly reporting, may be assigned to qualified persons within Treasury or within the FMSA Accounting or Administrative Services divisions as deemed appropriate by either the Director and/or Assistant Finance Director.

5.4 Qualified Persons
Qualified Persons shall refer to: (1) persons holding either a California Municipal Treasurers Association, California Treasury Certificate and/or Certified California Municipal Treasurer Certificate; or an Association of Public Treasurers of the United States and Canada, Certified Public Finance Administrator Certificate, or a National Association of State Treasurers Certificate in Public Treasury Management; or (2) persons who are performing investment related duties under the guidance and direction of certificate holders. Working together, Investment Officials and Qualified Persons comprise the FMSA investment staff.

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5.5 FMSA Investment Advisory Committee
To provide a regular departmental forum and consultive body for evaluating investment portfolio performance and strategy, internal procedures and controls, and for making recommendations to the Executive Director for FMSA in her/his capacity as chief fiscal officer and City Treasurer, a FMSA Investment Advisory Committee is established. All authorized Investment Officials are de facto standing members of the FMSA Investment Advisory Committee. At the discretion of the Executive Director for FMSA, other FMSA investment staff may be authorized membership on the committee. Meetings shall be held regularly on a basis determined by the Executive Director for FMSA. The FMSA Investment Advisory Committee’s evaluations and recommendations are subject to the approval of the Executive Director for FMSA, who services as committee chair.

6.0 ETHICS AND CONFLICTS OF INTEREST

6.1 Investment Officials and Officers
Investment Officials, officers, and employees involved in the investment process shall refrain from personal business activity that could conflict with the proper execution and management of the investment program, or that could impair their ability to make impartial decisions. Investment Officials, officers and employees shall disclose any material interests in financial institutions with which they conduct business. They shall further disclose any personal financial/investment positions that could be related to the performance of the investment portfolio. Investment Officials, officers and employees shall refrain from undertaking personal investment transactions with the same individual with whom business is conducted on behalf of the City of Santa Ana.

6.2 Statement of Economic Interests
Investment Officials and officers authorized to approve investment decisions shall be required to submit an annual Statement of Economic Interests, also known as a Form 700 in accordance with California Government Code, Section 1090 et seq. The Form 700 provides transparency and ensures accountability in two ways:
1) It provides necessary information to the public about official’s and officer’s personal financial interests to ensure that officials and officers are making decisions in the best interest of the public and not enhancing their personal finances.
2) It serves as a reminder to the public official of potential conflicts of interest so the official or officer can abstain from making or participating in governmental decisions that are deemed conflicts of interest.

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7.0 AUTHORIZED FINANCIAL INSTITUTIONS AND QUALIFIED BROKER-DEALERS

7.1 Authorized Financial Institutions
The City shall transact business only with commercial banks insured by the Federal Deposit Insurance Corporation (FDIC), savings and loans and registered investment securities dealers.

7.2 Qualified Broker-Dealers
The purchase by the City of any investment other than those purchased directly from the issuer, shall be purchased either from an institution licensed by the State as a Broker-Dealer, as defined in Section 25004 of the Corporations Code and registered with Financial Industry Regulatory Authority (FINRA), or a member of a Federally regulated securities exchange, a National or State-Chartered Bank, a Federal or State Association (as defined by Section 5102 of the Financial Code), or a brokerage firm designated as a Primary Government Dealer by the Federal Reserve Bank, and who is registered with FINRA.

7.3 Selection Process - City of Santa Ana Broker-Dealer Questionnaire The City’s FMSA investment staff shall investigate all institutions which wish to do business with the City as a Qualified City of Santa Ana Broker-Dealer, in order to determine if they are adequately capitalized, make markets in securities appropriate to the City's needs, certify having read and understood the City of Santa Ana Annual Statement of Investment Policy and agreeing to abide by the conditions set forth therein. This will be done by having the Financial Institutions complete and return the appropriate City of Santa Ana Broker-Dealer Questionnaire, along with their most current FINRA Report and Audited Financial Statement (available within onehundred, twenty (120) days of the Institution's fiscal year-end). Audited Financial Statements may be made available online. Financial Institutions currently certified as Qualified City of Santa Ana Broker-Dealers shall complete and return the appropriate City of Santa Ana Broker-Dealer Questionnaire triennially, but shall be subject to the Audited Financial Statement and FINRA annual reporting requirements annually. However, if the interaction with a currently certified Qualified City of Santa Ana Broker-Dealer is limited to investment trades through an electronic trading platform, then the Broker-Dealer is exempt from completion of a questionnaire, but shall remain subject to the Audited Financial Statement and FINRA reporting requirements annually.

7.4 Selection Criteria
In selecting external Broker-Dealers, past performance, stability, financial strength, reputation, area of expertise, and willingness and ability to provide the highest investment return at the lowest cost to the City within the parameters of this Investment policy and the California Government Code shall be primary considerations. FMSA investment staff will only conduct business with registered representatives of broker-dealers that have a minimum of three (3) years of continuous City Council 44 – 14 6/6/2023
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experience working for a primary dealer or five (5) years of continuous experience working for a non-primary dealer. FMSA investment staff will only purchase or sell securities from registered representatives that possess an active Series 7 license, an active Series 66 license, or an active Series 63 license, and who submit a FINRA form U4 (employment history) and a current FINRA form U5 Disclosure Statement and have completed the City’s Broker-Dealer questionnaire.

7.5 List of Approved Financial Institutions/Qualified Broker-Dealers Staff shall maintain a list of Financial Institutions/Qualified Broker-Dealers authorized to provide investment services to the City, along with their FINRA Report.

8.0 AUTHORIZED AND SUITABLE INVESTMENTS

8.1 Allowable Investment Instruments – State Law
California Government Code Section 53601 establishes allowable investment instruments applicable to all local agencies along with maximum maturities, maximum specified percentages of total portfolio, and minimum quality requirements.

Section 53601.1 authorizes local agencies to invest in financial futures or financial option contracts in any of the allowable investment categories enumerated in section 53601.

8.2 Authorized Investments
City of Santa Ana further restricts permitted investments to those listed below and where applicable, the Investment Advisory Committee may reduce maximum maturities, or maximum specified percentages of total portfolio (concentration limits), and may increase minimum quality requirements. Within this scope, the City diversifies its investments by types of investments, maturity dates, concentration limits, and quality requirements.

A. United States Treasury Bills, Notes, and Bonds, for which the full faith and credit of the United States are pledged for payment of principal and interest. Purchases of this category shall not exceed five years to maturity. There is no percentage limit in this category.

B. Obligations issued by a Federal Agency or a United States Government Sponsored Enterprise. Federal Agency Issues include, but are not limited to GNMA (Government National Mortgage Association), FFCB (Federal Farm Credit Bank), FHLB (Federal Home Loan Bank), FHLMC (Federal Home Loan Mortgage Corporation), FNMA (Federal National Mortgage Association), FHA (Federal Housing Administration), and TVA (Tennessee Valley Authority).

Although there is no percentage limitation on these issues, purchases of this category shall not exceed five years to maturity and the “prudent investor" rule shall apply for a single agency name as U.S. Government backing is implied rather than guaranteed.

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C. Supranational Obligations in United States dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, International Finance Corporation, or Inter-American Development Bank, with a maximum remaining maturity of five years or less, and eligible for purchase or sale within the United States. Investments under this subdivision shall be rated “AA” or better by an NRSRO and shall not exceed thirty (30%) percent of the cost value of the investment portfolio.

D. Bills of exchange or time drafts drawn on and accepted by a commercial bank, otherwise known as banker's acceptances, which are eligible for purchase by the Federal Reserve System. Purchases of banker's acceptances may not exceed one hundred eighty (180) days or forty percent (40%) of the cost value of the Fund which may be invested pursuant to this section. However, no more than thirty percent (30%) of the City's cost value of the investment portfolio may be invested in the banker’s acceptances of any one commercial bank pursuant to this section.

E. Commercial paper of “prime” quality of the highest ranking or of the highest letter and number rating as provided for by a Nationally Recognized Statistical Rating Organization (NRSRO). The entity that issues the commercial paper shall be organized and operating within the United States, as a general corporation, shall have total assets in excess of five-hundred, million dollars ($500,000,000), and has debt other than commercial paper, if any, that is rated "A" or higher by NRSRO. The entity is organized within the United States as a special purpose corporation, trust, or limited liability company; has program wide credit enhancements including, but not limited to: over-collateralization, letters of credit, or a surety bond; has commercial paper that is rated “A-1” or higher, or the equivalent, by an NRSRO Eligible commercial paper shall have a maximum maturity of two hundred seventy (270) days or less. The City may purchase no more than ten percent (10%) of the outstanding commercial paper of any single corporate issue. Purchases of commercial paper may not exceed twenty-five percent (25%) of the investment portfolio.

F. Repurchase Agreements. For purposes of this section, the term "repurchase agreement” means a purchase of securities by the local agency pursuant to an agreement by which the seller will repurchase the securities on or before a specified date and for a specified amount and will deliver the underlying securities to a third-party custodian. The City may invest in repurchase agreements with primary dealers of the Federal Reserve with which the City has entered into a Securities Industry and Financial Markets Association (SIFMA) Master Repurchase Agreement (MRA) which specifies terms and conditions of repurchase agreements. The market value of securities used as collateral for repurchase agreements shall not be allowed to fall below one hundred two percent (102%) of the value of the repurchase agreement and shall be adjusted no less than quarterly by the tri-party custodial agent. The investments in repurchase agreements shall be in compliance if the underlying securities are City Council 44 – 16 6/6/2023
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brought back up to one hundred two percent (102%) no later than the next business day. The underlying collateral shall be limited to United States Government Treasury Bills, Notes, and Bonds, or obligations issued by a Federal Agency or United States Government Sponsored Enterprises obligations. Upon the written approval of the Executive Director for FMSA, substituted securities may be pledged for collateral but shall consist only of investments permitted within this investment policy with a maximum maturity of five (5) years. If there is a default of the broker, the collateral securities can be sold. Since the securities are valued daily, it is likely that the sale proceeds will equal or exceed the value of the repurchase agreement amount. Purchases in this category shall not exceed one (1) year or twenty percent (20%) of the cost value of the investment portfolio. Retail repurchase agreements and reverse agreements shall not be authorized for purchase.

G. Negotiable certificates of deposit issued by a nationally or state-chartered bank, a savings association or a federal association (as defined by Section 5102 of the Financial Code), a state or federal credit union or by a state-licensed branch of a foreign bank. However, the City shall not invest in negotiable certificates of deposit issued by a state or federal credit union if a member of the City Council or any City personnel with investment decision making authority also serves on the board of directors, or any committee appointed by the board of directors, or the credit committee or the supervisory committee of the state or federal credit union issuing the negotiable certificates of deposit. Effective January 1, 2020 no more than fifty percent (50%) of the cost value of the City’s investment portfolio may be invested in deposits, including certificates of deposit, through a placement service as authorized under Government Code 53601.8 (excludes negotiable certificates of deposit authorized under Section 53601(i)). On January 1, 2026, the maximum percentage of the portfolio shall revert back to thirty percent (30%) percent. Investments made pursuant to Government Code Section 53635.8 remain subject to a maximum of thirty percent (30%) of the cost value of the investment portfolio. The amounts so invested shall be subject to the limitations of Government Code Section 53638 which generally provides that the deposit shall not exceed the shareholder’s equity of any depository bank, or the total net worth of any depository savings association or federal association, or the total of the unimpaired capital and surplus of an insured industrial loan company.

Purchases of this category shall not exceed five years to maturity.

H. Local Agency Investment Fund - State Pool. The City may invest in the Local Agency Investment Fund (LAIF) established by the State Treasurer under California Government Code Section 16429.1 for the benefit of local agencies.

LAIF provides daily liquidity; therefore, there is no final stated maturity for this investment category. Although there is no percentage limitation on this fund, the "prudent investor" rule shall apply for a single agency name. In keeping with LAIF deposit limit investments, City LAIF investments shall not exceed $75 million per active account, unless a greater deposit limit for regular accounts is authorized by the State Treasurer during the term of this Statement of Investment Policy, in which case City LAIF investments may increase up to that limit.

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I. California Cooperative Liquid Assets Securities System (CLASS) Prime Fund – Joint Powers of Authority Pool. The City may invest in the California CLASS Prime Fund established by a joint exercise of powers entity authorized under California Government Code Section 6509.7 for the benefit of all public agencies in the State of California that have authority to invest their treasury funds. The California CLASS Prime Fund provides daily liquidity; therefore, there is no final stated maturity for this investment category. Although there is no percentage limitation on this fund, the “prudent investor” rule shall apply for a single agency name. The California CLASS Prime Fund does not limit a maximum or minimum investment balance, in which case City California CLASS Prime Fund investments may increase or decrease based on pool performance, daily cash flow needs, etc.

J. City of Santa Ana Bonds. The City may invest in bonds issued by the City or agency of the City including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by the City or agency of the City. The City shall at all times adhere to restrictions and limitations of the bond indenture. Purchases of this category shall not exceed five years to maturity. There is no percentage limit in this category.

K. Other State of California Local Agency Bonds. The City may invest in other State of California Local Agency Bonds. Notes, warrants or other evidence of indebtedness of any local agency within this state, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by the local agency, or by a department, board, agency, or authority of the local agency. Investments in this category shall be restricted to instruments that have a ranking of A-1 or higher, or the equivalent by not less than two of the following nationally recognized statistical rating organizations: Moody’s, Standard & Poor’s or Fitch. Purchases of this category shall not exceed five years to maturity. There is no percentage limit in this category.

L. Medium Term Corporate Notes (MTN) defined as all corporate and depository institution debt securities with a maximum remaining maturity of five years or less, issued by corporations organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States. Notes eligible for investment shall be rated in a rating category of "A" or its equivalent or better by a nationally recognized rating service.

Purchases in this category shall not exceed five (5) years to maturity or thirty percent (30%) of the cost value of the investment portfolio. Purchases in a single issuer in this category shall not exceed five percent (5%) of the cost value of the investment portfolio.

M. Shares of beneficial interest otherwise known as money market shares issued by diversified management companies that are money market funds registered with the Securities and Exchange Commission under the Investment Company Act of 1940. The company shall have met either of the following criteria:

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1. Attain the highest ranking or the highest letter and numerical rating provided by not less than two NRSROs, and

2. Retained an investment adviser registered or exempt from registration with the Securities and Exchange Commission with not less than five (5) years’ experience investing in the securities and obligations authorized by subsection (a) to (k), inclusive, and subdivisions (m) to (o), inclusive, of Section 53601 of the Government Code and with assets under management in excess of five-hundred, million dollars ($500,000,000). The purchase price of shares of beneficial interest, (mutual funds) purchased pursuant to this subdivision shall not include any commission that these companies may charge.

Investments in this category shall be restricted to money market mutual funds that seek to maintain a Net Asset Value of $1. Money market mutual funds provide daily liquidity; therefore, there is no final stated maturity for this investment category. Investments in mutual funds shall be restricted to funds that have the highest ranking or the highest letter and numerical rating provided by not less than two of the following nationally recognized statistical rating organizations: Moody's, Standard & Poor's or Fitch. Purchases in this category shall not exceed 20% of the book value of the investment portfolio.

Purchases in a single mutual fund shall not exceed 10% of the book value of the Portfolio.

8.3 Suitability of Investments
Suitability, not simply return, is the standard for selecting investments for the portfolio.

The Executive Director for FMSA, and all authorized Investment Officials and other supporting FMSA investment staff shall review the following when selecting or recommending investments for the City:
• Sufficient liquidity to meet current obligations
• Appropriate level of market risk
• Diversified portfolio
• Legal investments
• Market rate of return
The Executive Director for FMSA and his/her designees are not required to invest in all the investment options authorized in this Statement of Investment Policy.

Selection will be based on cash flow characteristics, exposure to market risk, rate of return, the technical ability of the staff responsible for administering the program, and the availability of time and tools for staff to engage in conservative, but effective, management of the City’s investment portfolio.

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9.0 PROHIBITED INVESTMENTS AND INVESTMENT PRACTICES

9.1 Ineligible Investments - State Law
Certain investments, however, are prohibited by California Government Code Section 53601.6. Accordingly, the City shall not invest in any inverse floaters, range notes, mortgage derived, or interest-only strips or other securities which could result in zero-interest accrual if held to maturity. However, prohibited securities that were purchased and are currently held in the City's portfolio, as of the date of this policy adoption, which were previously allowed under the California Government Code, yet are now prohibited due to changes in the Code may be held until their maturity dates.

9.2 Disallowed Investments - Higher Perceived Risk
Besides investments prohibited by statute, this policy disallows investments in the following due to a higher perceived risk:
• Asset-backed securities (ABS) – securities supported by pools of installment loans or leases or by pools of revolving lines of credit; • Derivatives – financial instruments which have a principal and/or interest payment subject to uncertainty as to timing and/or amount including financial instruments whose return profile is linked to, or derived from, the movement of one or more underlying index or security, and may include a leveraging factor, or financial contracts based upon notional amounts whose value is derived from an underlying index or security (interest rates, foreign exchange rates, equities or commodities);
• Investment agreements – contracts regarding funds deposited by an investor often separated into those offered by banks and those offered by insurance companies commonly known as Guaranteed Investment Contracts (GICs) or Guaranteed Investment Agreements (GIAs);
• Mortgage-backed securities – securities created when a mortgage or purchaser of residential real estate mortgages creates a pool of mortgages and markets undivided interests or participation in the pool, including principal only strips;
• Reverse Repurchase agreements – agreements involving the borrowing of cash from a financial institution for the purchase of securities in which a financial asset is instead pledged as a collateral for a loan in which the roles of borrower and lender are reversed.
• Securities lending agreements – agreements allowing local agencies to earn incremental income on their investment portfolio by loaning securities in their portfolio to financial services companies for a limited time; • Unregistered securities – purchases of private resales of unregistered securities to institutions, such as Securities Act of 1933, Section 5, Rule 144A securities.

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9.3 Prohibited Investment Practices
Assets of the City shall not be invested pursuant to the following investment practices:
• Trading of securities strictly for speculation or solely for the realization of short-term trading gains.
• A contract providing for the compensation of an agent or fiduciary solely based upon the performance of the invested assets.
• If a fiduciary or other third party with custody of public investment transaction records of the City fails to produce records within a reasonable time, when requested by the City, the City shall make no new investments with or through the fiduciary or third party and shall not renew maturing investments with or through the fiduciary or third party.

10.0 INVESTMENT POOLS/MUTUAL FUNDS
The Executive Director for FMSA or his/her designee shall be required to investigate all local government investment pools and money market mutual funds, other than the state Local Agency Investment Fund (LAIF), prior to investing and perform at least a quarterly review thereafter while the City is invested in the pool or the money market fund.

The City authorizes pooled investment fund deposits with LAIF, which is authorized under provisions in Section 16429.1 of the California Government Code as an allowable investment for local agencies, even though some of the individual investments of the pool are not allowed as a direct investment by a local agency such as the City of Santa Ana.

The City also authorizes pooled investment fund deposits with California CLASS Prime Fund, which is authorized under Section 6509.7 of the California Government Code as an allowable investment for local agencies that have the authority to invest their treasury funds.

Government sponsored investment pools (Local Agency Investment Fund (LAIF), County Pools, Joint Powers Authority Pools, and the State Treasury Voluntary Investment Program Fund), are sources for short-term cash management.

Before seeking City Council approval for participation in one or more additional investment pools/money market mutual funds, the Executive Director for FMSA or his/her designees will conduct a thorough investigation the prospective pool prior to recommending City investment.

Before recommending investing in a prospective pool, the following issues must be reviewed:

A. The pool must meet the requirements of state statue.

B. The pool must provide a written statement of policy and objectives.

C. A questionnaire developed by FMSA investment staff and approved by the Treasury and Customer Services Manager or Assistant Director of Finance City Council 44 – 21 6/6/2023
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shall address the following general topics:
i. A description of eligible investment securities, and a written statement of investment policy and objectives.
ii. A description of interest calculations and how it is distributed, and how gains and losses are treated.
iii. A description of how the securities are safeguarded (including the settlement processes), and how often the securities are priced and the program audited.
iv. A description of who may invest in the program and how often, including size and frequency of minimum and maximum deposits, and how many withdrawal transactions are allowed (daily, monthly, quarter, annually, etc.).
v. A description of what type of notice is required by the program from the participant to make minimum and maximum deposit and withdrawal transactions.
vi. A description of how and who in the governing body of the program is authorized to make program changes, including frequency. The description must include how program participants are informed of program changes and impacts.
vii. A schedule for receiving statements and portfolio listings. viii. A description of how reserves, retained earnings, etc. are utilized by the pool.
ix. A model of the fee schedule, and when and how it is assessed. x. A description of eligibility and/or acceptance of bond proceeds. xi. The pool must contain only the types of investment allowed by California Code.

Upon approval for participation in one or more additional investment pools the FMSA investment staff shall thereafter on an annual basis investigate and reconfirm the pool’s compliance with items listed above and shall monitor the pool’s performance reports.

11.0 COLLATERALIZATION/SECURITY FOR DEPOSIT OF PUBLIC FUNDS Money must be deposited in state or national banks, state or federal savings associations or state or federal credit unions in the State of California. It may be in inactive deposits, active deposits or interest-bearing active deposits. The deposits cannot exceed the amount of the bank's or savings and loan's paid up capital and surplus.

The bank or savings and loan must secure the active and inactive deposits with eligible securities having a market value of one-hundred, ten percent (110%) of the total amount of the deposits. State law also allows as an eligible security, first trust deeds having a value of one-hundred, fifty percent (150%) of the total amount of the deposits. A third class of City Council 44 – 22 6/6/2023
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collateral is letters of credit drawn on the Federal Home Loan Bank (FHLB).

The Treasurer may waive, at his/her discretion, security for that portion of a deposit which is insured pursuant to federal law. Currently, the first two-hundred, fifty-thousand dollars ($250,000) of a deposit is federally insured.

12.0 SAFEKEEPING AND CUSTODY

12.1 Perfected Interest and Delivery versus Payment
In accordance with California Government Code Section 53601, to protect against potential losses caused by collapse of individual securities dealers, all securities owned by the City, except securities used as collateral for repurchase agreements, shall be kept in safekeeping with "perfected interest" by the City’s custodial bank or a third party bank trust department, acting as agent for the City under the terms of a custody agreement executed by the bank and by the City. Perfected interest refers to establishment of a superior ownership right in and legal control over the securities assets held by the bank custodian on the City’s behalf and is intended to protect the City from the custodial bank’s own creditors in the event of a bank default and filing for bankruptcy. All securities, excepting investments which are not deliverable (such as LAIF, California CLASS Prime Fund, direct time certificates of deposit, and money market mutual funds), will be received and delivered using standard “delivery versus payment”. Delivery versus payment refers to delivery of securities with an exchange of money for the securities at the time of delivery, rather than delivery of securities with an exchange of a signed receipt for the securities.

13.0 DIVERSIFICATION
The purpose of diversification is to reduce overall portfolio risk while attaining market rates of return and to enable the City to meet all anticipated cash requirements. The investment portfolio shall consist of various types of securities approved by state statute and this Statement of Investments Policy. Investments shall vary in issuers, asset classes, industries and maturities to meet City’s financial obligations. Diversifying the investment portfolio will help mitigate the loss of funds as a result of failure of any one issuer. Investments shall further be diversified between structures and imbedded options within the security.

The investments shall be diversified by:
• Limiting investments to avoid over-concentration in securities of a specific issuer (excluding treasury bills).
• Limiting investment in securities that have higher credit risks. • Limiting certificates of deposit to the maximum federally insured amount. • Investing in securities with varying maturities.
• Investing a minimum percentage of the total portfolio as established by the FMSA Investment Advisory Committee in highly marketable short-term treasuries, checking accounts with interest, government pooled account, or a combination of all three (See Section 4.1 (A)(iv)).

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14.0 MAXIMUM MATURITIES

14.1 Maximum Maturities
To the extent possible, the City of Santa Ana will attempt to match its investments with anticipated cash flow requirements and thus maturities shall coincide as nearly as possible with the anticipated need. The maximum durations for authorized investments pursuant to section 8. 2 subsections (A) through (F) are as follows:
• United States Treasury Bills, Notes, and Bonds – five (5) years maximum maturity • Obligations issued by a Federal Agency or a United States Government Sponsored Enterprise – five (5) years maximum maturity
• Supranational Obligations - five (5) years maximum maturity • Bills of Exchange/Banker's acceptances - one hundred eighty (180) days maximum maturity.
• Commercial Paper - two hundred seventy (270) days maximum maturity • Repurchase Agreements – one (1) year maximum maturity • Negotiable Certificates of Deposit - five (5) years maximum maturity • Local Agency Investment Fund (LAIF) State Pool - no final stated maturity • City of Santa Ana Bonds - five (5) years maximum maturity • Other State of California Local Agency Bonds - five (5) years maximum maturity • Medium Term Corporate Notes - five (5) years maximum maturity • Shares of Beneficial Interest/Money Market Shares - no final stated maturity (See also subsection 8.2 generally for additional information on City authorized concentration limits and quality requirements.)

14.2 Average Maturity
In accordance with the goal of minimizing interest rate risk (see subsection 4.1(b)) the City of Santa Ana will to the extent possible attempt to aim for an average investment portfolio maturity of 3 years.

15.0 INTERNAL CONTROLS
The Executive Director for FMSA 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 Finance Department, with oversight and approval of the Executive Director for FMSA, has developed a system of internal investment controls and a segregation of responsibilities of investment functions in order to assure an adequate system of internal control over the investment function. No investment personnel may engage in an investment transaction except as provided for under the terms of this policy and the procedure established by the Executive Director for FMSA.

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Internal control procedures address:
• Control of collusion
• Control of fraud
• Control of misrepresentation by third parties
• Control of employee error
• Separation of transaction authority from accounting and record keeping • Custodial safekeeping
• Delivery versus payment
• Clear delegation of authority
• Conformation of transactions for investment and wire transfers • Written procedures for placing of investment transactions • FMSA Investment Advisory Committee
In addition, cash balances are reconciled daily by non-investment employees and reconfirmed by the City's accounting staff. Accounting staff also verifies investment activities and holdings on a regular basis which are reviewed by the FMSA Investment Advisory Committee. The Executive Director for FMSA, at his/her discretion, shall establish a process for annual independent reviews by an external auditor to the extent contemplated by generally accepted auditing standards, during the course of the City’s annual audit.

16.0 PERFORMANCE STANDARDS
The investment portfolio shall be managed to attain a market-average rate of return throughout budgetary and economic cycles, taking into account the City's investment risk constraints, cash flow, and policy towards the pre-payment of specific City debts or contribution servicing obligations (when finically advantageous to the City). Investment return becomes a consideration only after the basic requirements of investment safety and liquidity have been met. Because the investment portfolio is designed to operate on primarily a 'hold-to-maturity' premise, and because of the safety, liquidity, and yield priorities, the performance goal that will be used by the Executive Director for FMSA to determine whether market yields are being achieved shall be the average of the monthly LAIF rate and the 12-month rolling average 2-Year Constant Maturity Treasury (CMT) rate. Having a goal does not imply that the City Treasurer will add additional risk to the Investment Portfolio in order to attain or exceed that goal.

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17.0 REPORTING
Government Code Section 53646(b)(1) previously mandated that annual investment policies and quarterly reports be rendered to the legislative body (for the City of Santa Ana - the City Council). AB 2853 amended Government Code Section 53646 making these requirements permissive rather than mandatory. Although the Annual Statement of Investment Policy and Quarterly Reports to City Council are no longer required, we believe it to be both prudent and in keeping with the spirit of the City’s Sunshine Policy that these documents continue to provided. The Executive Director for FMSA shall therefore continue to render to the City Council an annual Statement of Investment Policy and regular reports to the City Manager and the City Council containing detailed information on all securities, investments, and moneys of the City. The reports will be submitted to the City Manager and City Council on a monthly basis and will be rendered formally to the City Council on a quarterly basis as part of a scheduled open City Council Meeting agenda within forty-five (45) days following the end of each quarter.

The report will contain the following information on the funds that are subject to this investment policy:
1) Type of investment and name of issuer;
2) Date of maturity;
3) Par amount;
4) Dollar amount invested in all securities, and investments and monies held by the City (amortized cost or book value);
5) Weighted average maturity of the investments;
6) Current market value as of the date of report of all funds held by the City and under the management of any outside party that is not also a local agency or LAIF and the source of the valuation;
7) Source of the market value information;
8) A list of the any funds, investments or programs, including loans, under the management of contracted parties such as LAIF, investment. pools, outside money managers, and securities lending agents);
9) A statement of compliance with the investment policy or an explanation for non-compliance; and
10) A statement of the local agency’s ability to meet its pool’s expenditure requirements for the next six months, as well as an explanation of why sufficient money will not be available if that is the case.

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18.0 POLICY CONSIDERATIONS

18.1 Exemptions
Any investment currently held that does not meet the guidelines of this policy shall be exempted from the requirements of this policy as long as it was in compliance with State of California law and the City’s investment policy in effect at the time of purchase. At maturity or liquidation, such monies shall be reinvested only as provided by this policy.

18.2 Stabilization Fund
Except for cash in certain restricted and special funds, the consolidation of cash balances from all funds and the maintenance of portfolio liquidity (both static and dynamic) as provided for in this policy taken together with the monthly affirmation to the City Manager and City Councilmembers of the City’s ability to meet its pool’s expenditure requirements for the next six months shall be deemed to functionally meet and exceed the requirements of Article VI., Sec. 610, of the City of Santa Ana Charter as relates to the maintenance of a stabilization fund.

18.3 Amendments
In the event this policy is amended prior to the end of its twelve month fiscal year term the amended Statement of Investment Policy shall be resubmitted to City Council for review and adoption by City Council Resolution.

18.4 Approval
This Statement of Investment Policy is approved by City Council on this 06th day of June, 2023 pursuant to City Council Resolution # 2023- .

19.0 POLICY REVIEW, CERTIFICATION, AND ADOPTION

19.1 Policy Review
This Statement of Investment Policy shall be reviewed at least annually to ensure its consistency with the overall objectives of preservation of PRINCIPAL, LIQUIDITY, AND YIELD, and to: 1) reflect changes in applicable California state codes, 2) maintain its relevance to current financial and economic trends, and 3) meet the needs of the City of Santa Ana.

19.2 Policy Certification
This certified Statement of Investment Policy will be resubmitted to the Association of Public Treasurers of the United States and Canada (APTUS&C) and the California Municipal Treasurers Association (CMTA) for review and re-certification every five (5) years, or more often in the event of significant legislative changes, or changes in industry standards, or substantive non-administrative modifications to the body of the policy statement, exclusive of revisions or additions to appendices or glossaries. In FY 2019-20, the City of Santa Ana received Investment Policy City Council 44 – 27 6/6/2023
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Certifications from both the APTUS&C at the international North American level and the CMTA at the state level, and in FY 2021-22, the City of Santa Ana received Investment Policy Certification from CMTA at the state level.

19.3 Adoption
The Executive Director for FMSA shall annually render this Statement of Investment Policy to the City Council and City Manager. The City Council shall annually review and adopt this Statement of Investment Policy by resolution at a public meeting.

20.0 APPENDICIES & GLOSSARIES

20.1 California Investment Code Abstracts - Appendix I.

20.2 California Local Agency Investment Guidelines - Appendix II.

20.3 Glossaries of Terms
Appendix III. (Glossary of Referenced Terms - City of Santa Ana Investment Policy & Related California Codes)
Appendix IV. (Glossary of Additional Common Public Local Agency Investment Terms)
Appendix V. (Broker-Dealer Questionnaire and Certification Form) City Council 44 – 28 6/6/2023
Submitted to the Santa Ana City Council for approval,this 06th day of June 2023.

Kathryn Downs, CPA
Executive Director & City Treasurer
Finance & Management Services
Agency
AG:RP
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APPENDICIES
TABLE OF APPENDICIES ...................................................................................................................Page24 APPENDIX I.

CALIFORNIA INVESTMENT CODE ABSTRACTS
CORPORATIONS CODE SECTION 25004............................................................................................Page 24 FINANCIAL CODE SECTION 5102....................................................................................................... Page 25 GOVERNMENT CODE SECTION 53630...............................................................................................Page 26 GOVERNMENT CODE SECTION 53635...............................................................................................Page 27 GOVERNMENT CODE SECTION 53601...............................................................................................Page 28 GOVERNMENT CODE SECTION 53601.1............................................................................................Page 40 GOVERNMENT CODE SECTION 53601.6............................................................................................Page 41 GOVERNMENT CODE SECTION 53638...............................................................................................Page 42 GOVERNMENT CODE SECTION 53646...............................................................................................Page 43 GOVERNMENT CODE SECTION 6509.7..............................................................................................Page 45 GOVERNMENT CODE SECTION 16429.1............................................................................................Page 46 APPENDIX II.

LOCAL AGENCY INVESTMENT GUIDELINES TABLES

ALLOWABLE INVESTMENT INSTRUMENTS PER
STATE GOVERNMENT CODE (AS OF JANUARY 1, 2023)

APPLICABLE TOO ALL LOCAL AGENCIES
(FIGURE 1) - LOCAL AGENCY INVESTMENT GUIDELINES............................................................Page i

ALLOWABLE INVESTMENT INSTRUMENTS
TABLE OF NOTES FOR FIGURE 1 - LOCAL AGENCY
INVESTMENT GUIDELINES ........................................................................................................... Pages ii-iii APPENDIX III.

GLOSSARYOF REFERENCED TERMS - CITY OF SANTAANA
INVESTMENT POLICY AND RELATED CALIFORNIA CODES.............................................................Pages A-H APPENDIX IV.

GLOSSARYOF ADDITIONALCOMMON PUBLIC LOCALAGENCYINVESTMENTTERMS..........Pages I-L APPENDIX V.

BROKER / DEALER QUESTIONNAIRE AND CERTIFICATION FORM............................................Pages M-O City Council 44 – 30 6/6/2023
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CORPORATIONS CODE - CORP
TITLE 4. SECURITIES [25000 - 31516]
(Title 4 added by Stats. 1949, Ch. 384.)
DIVISION 1. CORPORATE SECURITIES LAW OF 1968 [25000 - 25707] (Division 1 repealed and added by Stats. 1968, Ch. 88.) PART 1. DEFINITIONS [25000 - 25023]
(Part 1 added by Stats. 1968, Ch. 88.)

CORPORATIONS CODE

SECTION
25004.
(a) “Broker-dealer” means any person engaged in the business of effecting transactions in securities in this state for the account of others or for his own account. “Broker-dealer” also includes a person engaged in the regular business of issuing or guaranteeing options with regard to securities not of his own issue. “Brokerdealer” does not include any of the following:
(1) Any other issuer.
(2) An agent, when an employee of a broker-dealer or issuer. (3) A bank, trust company, or savings and loan association. (4) Any person insofar as he buys or sells securities for his own account, either individually or in some fiduciary capacity, but not as part of a regular business. (5) A person who has no place of business in this state if he effects transactions in this state exclusively with (A) the issuers of the securities involved in the transactions or (B) other broker-dealers. (6) A broker licensed by the Real Estate Commissioner of this state when engaged in transactions in securities exempted by subdivision (f) or (p) of Section 25100 or in securities the issuance of which is subject to authorization by the Real Estate Commissioner of this state or in transactions exempted by subdivision (e) of Section 25102.
(7) An exchange certified by the Commissioner of Corporations pursuant to this section when it is issuing or guaranteeing options. The commissioner may by order certify an exchange under this section upon such conditions as he by rule or order deems appropriate, and upon notice and opportunity to be heard he may suspend or revoke such certification, if he finds such certification, suspension, or revocation to be in the public interest and necessary and appropriate for the protection of investors. (b) For purposes of this section, an agent is an employee of a broker-dealer under paragraph (2) of subdivision (a) when the agent is employed by or associated with the broker-dealer under all of the following conditions:
(1) The agent is subject to the supervision and control of the broker-dealer. (2) The agent performs under the name, authority, and marketing policies of the broker-dealer. (3) The agent discloses to investors the identity of the broker-dealer. (4) The agent is reported pursuant to subdivision (c) of Section 25210 and the rules adopted thereunder. (Amended by Stats. 2004, Ch. 461, Sec. 1. Effective January 1, 2005.) City Council 44 – 31 6/6/2023
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FINANCIAL CODE - FIN
DIVISION 2. SAVINGS ASSOCIATION LAW [5000 - 10009]
(Division 2 repealed and added by Stats. 1983, Ch. 1091, Sec. 2.) CHAPTER 1. Short Title, General Definitions, and General Provisions [5000 - 5330] (Chapter 1 added by Stats. 1983, Ch. 1091, Sec. 2.)
ARTICLE 2. General Definitions [5100 - 5124]
(Article 2 added by Stats. 1983, Ch. 1091, Sec. 2.)

FINANCIAL CODE

SECTION
5102.
(a) “Association” or “savings association” means a mutual or stock savings association, savings and loan association or savings bank subject to the provisions of this division, but excluding a federal association. (b) “Federal association” means a savings and loan association or federal savings bank that is chartered by the Office of Thrift Supervision under Section 5 of the Home Owners’ Loan Act of 1933 (12 U.S.C. Sec. 1464), as amended.
(Amended by Stats. 1990, Ch. 1118, Sec. 8.)
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GOVERNMENT CODE - GOV
TITLE 5. LOCAL AGENCIES [50001 - 57550]
(Title 5 added by Stats. 1949, Ch. 81.)
DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] (Division 2 added by Stats. 1949, Ch. 81.)
PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7]
(Part 1 added by Stats. 1949, Ch. 81.)
CHAPTER 4. Financial Affairs [53600 - 53997]
(Chapter 4 added by Stats. 1949, Ch. 81.)
ARTICLE 2. Deposit of Funds [53630 - 53686]
(Article 2 added by Stats. 1949, Ch. 81.)

GOVERNMENT CODE

SECTION
53630.

As used in this article:
(a) “Local agency” means county, city, city and county, including a chartered city or county, a community college district, or other public agency or corporation in this state. (b) “Treasurer” means treasurer of the local agency.
(c) “Depository” means a state or national bank, savings association or federal association, a state or federal credit union, or a federally insured industrial loan company, in this state in which the moneys of a local agency are deposited.
(d) “Agent of depository” means a trust company or trust department of a state or national bank located in this state, including the trust department of a depository where authorized, and the Federal Home Loan Bank of San Francisco, which is authorized to act as an agent of depository for the purposes of this article pursuant to Section 53657.
(e) “Security” means any of the eligible securities or obligations listed in Section 53651. (f) “Pooled securities” means eligible securities held by an agent of depository for a depository and securing deposits of one or more local agencies.
(g) “Administrator” means the Administrator of Local Agency Security of the State of California. (h) “Savings association or federal association” means a savings association, savings and loan association, or savings bank as defined by Section 5102 of the Financial Code. (i) “Federally insured industrial loan company” means an industrial loan company licensed under Division 7 (commencing with Section 18000) of the Financial Code, the investment certificates of which are insured by the Federal Deposit Insurance Corporation.
(j) ) “Corporation” includes a limited liability company. (Amended by Stats. 2004, Ch. 118, Sec. 19.7. Effective January 1, 2005.) . . .

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GOVERNMENT CODE

SECTION
53635.
(a) This section shall apply to a local agency that is a county, a city and county, or other local agency that pools money in deposits or investments with other local agencies, including local agencies that have the same governing body. However, Section 53601 shall apply to all local agencies that pool money in deposits or investments exclusively with local agencies that have the same governing body.

This section shall be interpreted in a manner that recognizes the distinct characteristics of investment pools and the distinct administrative burdens on managing and investing funds on a pooled basis pursuant to Article 6 (commencing with Section 27130) of Chapter 5 of Division 2 of Title 3.

A local agency that is a county, a city and county, or other local agency that pools money in deposits or investments with other agencies may invest in commercial paper pursuant to subdivision (h) of Section 53601, except that the local agency shall be subject to the following concentration limits:
(1) No more than 40 percent of the local agency’s money may be invested in eligible commercial paper. (2) No more than 10 percent of the total assets of the investments held by a local agency may be invested in any one issuer’s commercial paper.
(b) Notwithstanding Section 53601, the City of Los Angeles shall be subject to the concentration limits of this section for counties and for cities and counties with regard to the investment of money in eligible commercial paper.
(c) A local agency subject to this section may invest in commercial paper, debt securities, or other obligations of a public bank, as defined in Section 57600. (Amended by Stats. 2019, Ch. 442, Sec. 12. (AB 857) Effective January 1, 2020.) . . .

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GOVERNMENT CODE

SECTION
53601.

This section shall apply to a local agency that is a city, a district, or other local agency that does not pool money in deposits or investments with other local agencies, other than local agencies that have the same governing body. However, Section 53635 shall apply to all local agencies that pool money in deposits or investments with other local agencies that have separate governing bodies. The legislative body of a local agency having moneys in a sinking fund or moneys in its treasury not required for the immediate needs of the local agency may invest any portion of the moneys that it deems wise or expedient in those investments set forth below. A local agency purchasing or obtaining any securities prescribed in this section, in a negotiable, bearer, registered, or nonregistered format, shall require delivery of the securities to the local agency, including those purchased for the agency by financial advisers, consultants, or managers using the agency’s funds, by book entry, physical delivery, or by third-party custodial agreement. The transfer of securities to the counterparty bank’s customer book entry account may be used for book entry delivery.

For purposes of this section, “counterparty” means the other party to the transaction. A counterparty bank’s trust department or separate safekeeping department may be used for the physical delivery of the security if the security is held in the name of the local agency. Where this section specifies a percentage limitation for a particular category of investment, that percentage is applicable only at the date of purchase. For purposes of compliance with this section, an investment’s term or remaining maturity shall be measured from the settlement date to final maturity. A security purchased in accordance with this section shall not have a forward settlement date exceeding 45 days from the time of investment. Where this section does not specify a limitation on the term or remaining maturity at the time of the investment, no investment shall be made in any security, other than a security underlying a repurchase or reverse repurchase agreement or securities lending agreement authorized by this section, that at the time of the investment has a term remaining to maturity in excess of five years, unless the legislative body has granted express authority to make that investment either specifically or as a part of an investment program approved by the legislative body no less than three months prior to the investment:
(a) Bonds issued by the local agency, including bonds payable solely out of the revenues from a revenueproducing property owned, controlled, or operated by the local agency or by a department, board, agency, or authority of the local agency.
(b) United States Treasury notes, bonds, bills, or certificates of indebtedness, or those for which the faith and credit of the United States are pledged for the payment of principal and interest. (c) Registered state warrants or treasury notes or bonds of this state, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by the state or by a department, board, agency, or authority of the state.
(d) 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. (e) Bonds, notes, warrants, or other evidences of indebtedness of a local agency within this state, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by the local agency, or by a department, board, agency, or authority of the local agency. (f) Federal agency or United States government-sponsored enterprise obligations, participations, or other instruments, including those issued by or fully guaranteed as to principal and interest by federal agencies or United States government-sponsored enterprises.

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(g) Bankers’ acceptances otherwise known as bills of exchange or time drafts that are drawn on and accepted by a commercial bank. Purchases of bankers’ acceptances shall not exceed 180 days’ maturity or 40 percent of the agency’s moneys that may be invested pursuant to this section. However, no more than 30 percent of the agency’s moneys may be invested in the bankers’ acceptances of any one commercial bank pursuant to this section.

This subdivision does not preclude a municipal utility district from investing moneys in its treasury in a manner authorized by the Municipal Utility District Act (Division 6 (commencing with Section 11501) of the Public Utilities Code).
(h) Commercial paper of “prime” quality of the highest ranking or of the highest letter and number rating as provided for by a nationally recognized statistical rating organization (NRSRO). The entity that issues the commercial paper shall meet all of the following conditions in either paragraph (1) or (2):
(1) The entity meets the following criteria:
(A) Is organized and operating in the United States as a general corporation. (B) Has total assets in excess of five hundred million dollars ($500,000,000). (C) Has debt other than commercial paper, if any, that is rated in a rating category of “A” or its equivalent or higher by an NRSRO.
(2) The entity meets the following criteria:
(A) Is organized within the United States as a special purpose corporation, trust, or limited liability company. (B) Has programwide credit enhancements including, but not limited to, overcollateralization, letters of credit, or a surety bond.
(C) Has commercial paper that is rated “A-1” or higher, or the equivalent, by an NRSRO.

Eligible commercial paper shall have a maximum maturity of 270 days or less. Local agencies, other than counties or a city and county, that have less than one hundred million dollars ($100,000,000) of investment assets under management, may invest no more than 25 percent of their moneys in eligible commercial paper.

Local agencies, other than counties or a city and county, that have one hundred million dollars ($100,000,000) or more of investment assets under management may invest no more than 40 percent of their moneys in eligible commercial paper. A local agency, other than a county or a city and a county, may invest no more than 10 percent of its total investment assets in the commercial paper and the medium-term notes of any single issuer. Counties or a city and county may invest in commercial paper pursuant to the concentration limits in subdivision (a) of Section 53635.
(i) Negotiable certificates of deposit issued by a nationally or state-chartered bank, a savings association or a federal association (as defined by Section 5102 of the Financial Code), a state or federal credit union, or by a federally licensed or state-licensed branch of a foreign bank. Purchases of negotiable certificates of deposit shall not exceed 30 percent of the agency’s moneys that may be invested pursuant to this section. For purposes of this section, negotiable certificates of deposit do not come within Article 2 (commencing with Section 53630), except that the amount so invested shall be subject to the limitations of Section 53638. The legislative body of a local agency and the treasurer or other official of the local agency having legal custody of the moneys are prohibited from investing local agency funds, or funds in the custody of the local agency, City Council 44 – 36 6/6/2023
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in negotiable certificates of deposit issued by a state or federal credit union if a member of the legislative body of the local agency, or a person with investment decisionmaking authority in the administrative office manager’s office, budget office, auditor-controller’s office, or treasurer’s office of the local agency also serves on the board of directors, or any committee appointed by the board of directors, or the credit committee or the supervisory committee of the state or federal credit union issuing the negotiable certificates of deposit. (j) ) (1) Investments in repurchase agreements or reverse repurchase agreements or securities lending agreements of securities authorized by this section, as long as the agreements are subject to this subdivision, including the delivery requirements specified in this section. (2) Investments in repurchase agreements may be made, on an investment authorized in this section, when the term of the agreement does not exceed one year. The market value of securities that underlie a repurchase agreement shall be valued at 102 percent or greater of the funds borrowed against those securities and the value shall be adjusted no less than quarterly. Since the market value of the underlying securities is subject to daily market fluctuations, the investments in repurchase agreements shall be in compliance if the value of the underlying securities is brought back up to 102 percent no later than the next business day.
(3) Reverse repurchase agreements or securities lending agreements may be utilized only when all of the following conditions are met:
(A) The security to be sold using a reverse repurchase agreement or securities lending agreement has been owned and fully paid for by the local agency for a minimum of 30 days prior to sale. (B) The total of all reverse repurchase agreements and securities lending agreements on investments owned by the local agency does not exceed 20 percent of the base value of the portfolio. (C) The agreement does not exceed a term of 92 days, unless the agreement includes a written codicil guaranteeing a minimum earning or spread for the entire period between the sale of a security using a reverse repurchase agreement or securities lending agreement and the final maturity date of the same security.
(D) Funds obtained or funds within the pool of an equivalent amount to that obtained from selling a security to a counterparty using a reverse repurchase agreement or securities lending agreement shall not be used to purchase another security with a maturity longer than 92 days from the initial settlement date of the reverse repurchase agreement or securities lending agreement, unless the reverse repurchase agreement or securities lending agreement includes a written codicil guaranteeing a minimum earning or spread for the entire period between the sale of a security using a reverse repurchase agreement or securities lending agreement and the final maturity date of the same security. (4) (A) Investments in reverse repurchase agreements, securities lending agreements, or similar investments in which the local agency sells securities prior to purchase with a simultaneous agreement to repurchase the security may be made only upon prior approval of the governing body of the local agency and shall be made only with primary dealers of the Federal Reserve Bank of New York or with a nationally or state-chartered bank that has or has had a significant banking relationship with a local agency. (B) For purposes of this chapter, “significant banking relationship” means any of the following activities of a bank:

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(i) Involvement in the creation, sale, purchase, or retirement of a local agency’s bonds, warrants, notes, or other evidence of indebtedness.
(ii) Financing of a local agency’s activities.
(iii) Acceptance of a local agency’s securities or funds as deposits. (5) (A) “Repurchase agreement” means a purchase of securities by the local agency pursuant to an agreement by which the counterparty seller will repurchase the securities on or before a specified date and for a specified amount and the counterparty will deliver the underlying securities to the local agency by book entry, physical delivery, or by third-party custodial agreement. The transfer of underlying securities to the counterparty bank’s customer book-entry account may be used for book-entry delivery. (B) “Securities,” for purposes of repurchase under this subdivision, means securities of the same issuer, description, issue date, and maturity.
(C) “Reverse repurchase agreement” means a sale of securities by the local agency pursuant to an agreement by which the local agency will repurchase the securities on or before a specified date and includes other comparable agreements.
(D) “Securities lending agreement” means an agreement under which a local agency agrees to transfer securities to a borrower who, in turn, agrees to provide collateral to the local agency. During the term of the agreement, both the securities and the collateral are held by a third party. At the conclusion of the agreement, the securities are transferred back to the local agency in return for the collateral. (E) For purposes of this section, the base value of the local agency’s pool portfolio shall be that dollar amount obtained by totaling all cash balances placed in the pool by all pool participants, excluding any amounts obtained through selling securities by way of reverse repurchase agreements, securities lending agreements, or other similar borrowing methods.
(F) For purposes of this section, the spread is the difference between the cost of funds obtained using the reverse repurchase agreement and the earnings obtained on the reinvestment of the funds. (k) Medium-term notes, defined as all corporate and depository institution debt securities with a maximum remaining maturity of five years or less, issued by corporations organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States. Notes eligible for investment under this subdivision shall be rated in a rating category of “A” or its equivalent or better by an NRSRO. Purchases of medium-term notes shall not include other instruments authorized by this section and shall not exceed 30 percent of the agency’s moneys that may be invested pursuant to this section. A local agency, other than a county or a city and a county, may invest no more than 10 percent of its total investment assets in the commercial paper and the medium-term notes of any single issuer.
(l) (1) Shares of beneficial interest issued by diversified management companies that invest in the securities and obligations as authorized by subdivisions (a) to (k), inclusive, and subdivisions (m) to (q), inclusive, and that comply with the investment restrictions of this article and Article 2 (commencing with Section 53630).

However, notwithstanding these restrictions, a counterparty to a reverse repurchase agreement or securities lending agreement is not required to be a primary dealer of the Federal Reserve Bank of New York if the company’s board of directors finds that the counterparty presents a minimal risk of default, and the value of City Council 44 – 38 6/6/2023
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the securities underlying a repurchase agreement or securities lending agreement may be 100 percent of the sales price if the securities are marked to market daily. (2) Shares of beneficial interest issued by diversified management companies that are money market funds registered with the Securities and Exchange Commission under the Investment Company Act of 1940 (15 U.S.C. Sec. 80a-1 et seq.).
(3) If investment is in shares issued pursuant to paragraph (1), the company shall have met either of the following criteria:
(A) Attained the highest ranking or the highest letter and numerical rating provided by not less than two NRSROs.
(B) Retained an investment adviser registered or exempt from registration with the Securities and Exchange Commission with not less than five years’ experience investing in the securities and obligations authorized by subdivisions (a) to (k), inclusive, and subdivisions (m) to (q), inclusive, and with assets under management in excess of five hundred million dollars ($500,000,000). (4) If investment is in shares issued pursuant to paragraph (2), the company shall have met either of the following criteria:
(A) Attained the highest ranking or the highest letter and numerical rating provided by not less than two NRSROs.
(B) 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 five hundred million dollars ($500,000,000). (5) The purchase price of shares of beneficial interest purchased pursuant to this subdivision shall not include commission that the companies may charge and shall not exceed 20 percent of the agency’s moneys that may be invested pursuant to this section. However, no more than 10 percent of the agency’s funds may be invested in shares of beneficial interest of any one mutual fund pursuant to paragraph (1). (m) Moneys held by a trustee or fiscal agent and pledged to the payment or security of bonds or other indebtedness, or obligations under a lease, installment sale, or other agreement of a local agency, or certificates of participation in those bonds, indebtedness, or lease installment sale, or other agreements, may be invested in accordance with the statutory provisions governing the issuance of those bonds, indebtedness, or lease installment sale, or other agreement, or to the extent not inconsistent therewith or if there are no specific statutory provisions, in accordance with the ordinance, resolution, indenture, or agreement of the local agency providing for the issuance. (n) Notes, bonds, or other obligations that are at all times secured by a valid first priority security interest in securities of the types listed by Section 53651 as eligible securities for the purpose of securing local agency deposits having a market value at least equal to that required by Section 53652 for the purpose of securing local agency deposits. The securities serving as collateral shall be placed by delivery or book entry into the custody of a trust company or the trust department of a bank that is not affiliated with the issuer of the secured obligation, and the security interest shall be perfected in accordance with the requirements of the Uniform Commercial Code or federal regulations applicable to the types of securities in which the security interest is granted.

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(o) A mortgage passthrough security, collateralized mortgage obligation, mortgage-backed or other paythrough bond, equipment lease-backed certificate, consumer receivable passthrough certificate, or consumer receivable-backed bond. Securities eligible for investment under this subdivision shall be rated in a rating category of “AA” or its equivalent or better by an NRSRO and have a maximum remaining maturity of five years or less. Purchase of securities authorized by this subdivision shall not exceed 20 percent of the agency’s surplus moneys that may be invested pursuant to this section. (p) Shares of beneficial interest issued by a joint powers authority organized pursuant to Section 6509.7 that invests in the securities and obligations authorized in subdivisions (a) to (q), inclusive. Each share shall represent an equal proportional interest in the underlying pool of securities owned by the joint powers authority. To be eligible under this section, the joint powers authority issuing the shares shall have retained an investment adviser that meets all of the following criteria:
(1) The adviser is registered or exempt from registration with the Securities and Exchange Commission. (2) The adviser has not less than five years of experience investing in the securities and obligations authorized in subdivisions (a) to (q), inclusive.
(3) The adviser has assets under management in excess of five hundred million dollars ($500,000,000). (q) United States dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, International Finance Corporation, or Inter-American Development Bank, with a maximum remaining maturity of five years or less, and eligible for purchase and sale within the United States. Investments under this subdivision shall be rated in a rating category of “AA” or its equivalent or better by an NRSRO and shall not exceed 30 percent of the agency’s moneys that may be invested pursuant to this section.
(r) Commercial paper, debt securities, or other obligations of a public bank, as defined in Section 57600.

This section shall remain in effect only until January 1, 2026, and as of that date is repealed. (Amended by Stats. 2020, Ch. 235, Sec. 2. (SB 998) Effective January 1, 2021.) . . .

GOVERNMENT CODE

SECTION
53601.

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For purposes of this section, “counterparty” means the other party to the transaction. A counterparty bank’s trust department or separate safekeeping department may be used for the physical delivery of the security if the security is held in the name of the local agency. Where this section specifies a percentage limitation for a particular category of investment, that percentage is applicable only at the date of purchase. For purposes of compliance with this section, an investment’s term or remaining maturity shall be measured from the settlement date to final maturity. A security purchased in accordance with this section shall not have a forward settlement date exceeding 45 days from the time of investment. Where this section does not specify a limitation on the term or remaining maturity at the time of the investment, no investment shall be made in any security, other than a security underlying a repurchase or reverse repurchase agreement or securities lending agreement authorized by this section, that at the time of the investment has a term remaining to maturity in excess of five years, unless the legislative body has granted express authority to make that investment either specifically or as a part of an investment program approved by the legislative body no less than three months prior to the investment:
(a) Bonds issued by the local agency, including bonds payable solely out of the revenues from a revenueproducing property owned, controlled, or operated by the local agency or by a department, board, agency, or authority of the local agency.
(b) United States Treasury notes, bonds, bills, or certificates of indebtedness, or those for which the faith and credit of the United States are pledged for the payment of principal and interest. (c) Registered state warrants or treasury notes or bonds of this state, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by the state or by a department, board, agency, or authority of the state.
(d) 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. (e) Bonds, notes, warrants, or other evidences of indebtedness of a local agency within this state, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by the local agency, or by a department, board, agency, or authority of the local agency. (f) Federal agency or United States government-sponsored enterprise obligations, participations, or other instruments, including those issued by or fully guaranteed as to principal and interest by federal agencies or United States government-sponsored enterprises.
(g) Bankers’ acceptances otherwise known as bills of exchange or time drafts that are drawn on and accepted by a commercial bank. Purchases of bankers’ acceptances shall not exceed 180 days’ maturity or 40 percent of the agency’s moneys that may be invested pursuant to this section. However, no more than 30 percent of the agency’s moneys may be invested in the bankers’ acceptances of any one commercial bank pursuant to this section.

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(A) Is organized and operating in the United States as a general corporation. (B) Has total assets in excess of five hundred million dollars ($500,000,000). (C) Has debt other than commercial paper, if any, that is rated in a rating category of “A” or its equivalent or higher by an NRSRO.
(2) The entity meets the following criteria:
(A) Is organized within the United States as a special purpose corporation, trust, or limited liability company. (B) Has programwide credit enhancements including, but not limited to, overcollateralization, letters of credit, or a surety bond.
(C) Has commercial paper that is rated “A-1” or higher, or the equivalent, by an NRSRO.

Eligible commercial paper shall have a maximum maturity of 270 days or less. Local agencies, other than counties or a city and county, may invest no more than 25 percent of their moneys in eligible commercial paper. A local agency, other than a county or a city and a county, may invest no more than 10 percent of its total investment assets in the commercial paper and the medium-term notes of any single issuer. Counties or a city and county may invest in commercial paper pursuant to the concentration limits in subdivision (a) of Section 53635.
(i)Negotiable certificates of deposit issued by a nationally or state-chartered bank, a savings association or a federal association (as defined by Section 5102 of the Financial Code), a state or federal credit union, or by a federally licensed or state-licensed branch of a foreign bank. Purchases of negotiable certificates of deposit shall not exceed 30 percent of the agency’s moneys that may be invested pursuant to this section. For purposes of this section, negotiable certificates of deposit do not come within Article 2 (commencing with Section 53630), except that the amount so invested shall be subject to the limitations of Section 53638. The legislative body of a local agency and the treasurer or other official of the local agency having legal custody of the moneys are prohibited from investing local agency funds, or funds in the custody of the local agency, in negotiable certificates of deposit issued by a state or federal credit union if a member of the legislative body of the local agency, or a person with investment decisionmaking authority in the administrative office manager’s office, budget office, auditor-controller’s office, or treasurer’s office of the local agency also serves on the board of directors, or any committee appointed by the board of directors, or the credit committee or the supervisory committee of the state or federal credit union issuing the negotiable certificates of deposit. (j)(1) Investments in repurchase agreements or reverse repurchase agreements or securities lending agreements of securities authorized by this section, as long as the agreements are subject to this subdivision, including the delivery requirements specified in this section. (2) Investments in repurchase agreements may be made, on an investment authorized in this section, when the term of the agreement does not exceed one year. The market value of securities that underlie a repurchase agreement shall be valued at 102 percent or greater of the funds borrowed against those securities and the value shall be adjusted no less than quarterly. Since the market value of the underlying securities is subject to daily market fluctuations, the investments in repurchase agreements shall be in compliance if the value of the underlying securities is brought back up to 102 percent no later than the next business day.

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(3) Reverse repurchase agreements or securities lending agreements may be utilized only when all of the following conditions are met:
(A) The security to be sold using a reverse repurchase agreement or securities lending agreement has been owned and fully paid for by the local agency for a minimum of 30 days prior to sale. (B) The total of all reverse repurchase agreements and securities lending agreements on investments owned by the local agency does not exceed 20 percent of the base value of the portfolio. (C) The agreement does not exceed a term of 92 days, unless the agreement includes a written codicil guaranteeing a minimum earning or spread for the entire period between the sale of a security using a reverse repurchase agreement or securities lending agreement and the final maturity date of the same security.
(D) Funds obtained or funds within the pool of an equivalent amount to that obtained from selling a security to a counterparty using a reverse repurchase agreement or securities lending agreement shall not be used to purchase another security with a maturity longer than 92 days from the initial settlement date of the reverse repurchase agreement or securities lending agreement, unless the reverse repurchase agreement or securities lending agreement includes a written codicil guaranteeing a minimum earning or spread for the entire period between the sale of a security using a reverse repurchase agreement or securities lending agreement and the final maturity date of the same security. (4)(A) Investments in reverse repurchase agreements, securities lending agreements, or similar investments in which the local agency sells securities prior to purchase with a simultaneous agreement to repurchase the security may be made only upon prior approval of the governing body of the local agency and shall be made only with primary dealers of the Federal Reserve Bank of New York or with a nationally or state-chartered bank that has or has had a significant banking relationship with a local agency. (B) For purposes of this chapter, “significant banking relationship” means any of the following activities of a bank:
(i) Involvement in the creation, sale, purchase, or retirement of a local agency’s bonds, warrants, notes, or other evidence of indebtedness.
(ii) Financing of a local agency’s activities.
(iii) Acceptance of a local agency’s securities or funds as deposits. (5)(A) “Repurchase agreement” means a purchase of securities by the local agency pursuant to an agreement by which the counterparty seller will repurchase the securities on or before a specified date and for a specified amount and the counterparty will deliver the underlying securities to the local agency by book entry, physical delivery, or by third-party custodial agreement. The transfer of underlying securities to the counterparty bank’s customer book-entry account may be used for book-entry delivery. (B) “Securities,” for purposes of repurchase under this subdivision, means securities of the same issuer, description, issue date, and maturity.
(C) “Reverse repurchase agreement” means a sale of securities by the local agency pursuant to an agreement by which the local agency will repurchase the securities on or before a specified date and includes other comparable agreements.

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(D) “Securities lending agreement” means an agreement under which a local agency agrees to transfer securities to a borrower who, in turn, agrees to provide collateral to the local agency. During the term of the agreement, both the securities and the collateral are held by a third party. At the conclusion of the agreement, the securities are transferred back to the local agency in return for the collateral. (E) For purposes of this section, the base value of the local agency’s pool portfolio shall be that dollar amount obtained by totaling all cash balances placed in the pool by all pool participants, excluding any amounts obtained through selling securities by way of reverse repurchase agreements, securities lending agreements, or other similar borrowing methods.
(F) For purposes of this section, the spread is the difference between the cost of funds obtained using the reverse repurchase agreement and the earnings obtained on the reinvestment of the funds. (k)Medium-term notes, defined as all corporate and depository institution debt securities with a maximum remaining maturity of five years or less, issued by corporations organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States. Notes eligible for investment under this subdivision shall be rated in a rating category of “A” or its equivalent or better by an NRSRO. Purchases of medium-term notes shall not include other instruments authorized by this section and shall not exceed 30 percent of the agency’s moneys that may be invested pursuant to this section. A local agency, other than a county or a city and a county, may invest no more than 10 percent of its total investment assets in the commercial paper and the medium-term notes of any single issuer.
(l)(1) Shares of beneficial interest issued by diversified management companies that invest in the securities and obligations as authorized by subdivisions (a) to (k), inclusive, and subdivisions (m) to (q), inclusive, and that comply with the investment restrictions of this article and Article 2 (commencing with Section 53630).

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(A) Attained the highest ranking or the highest letter and numerical rating provided by not less than two NRSROs.
(B) 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 five hundred million dollars ($500,000,000). (5) The purchase price of shares of beneficial interest purchased pursuant to this subdivision shall not include commission that the companies may charge and shall not exceed 20 percent of the agency’s moneys that may be invested pursuant to this section. However, no more than 10 percent of the agency’s funds may be invested in shares of beneficial interest of any one mutual fund pursuant to paragraph (1). (m) Moneys held by a trustee or fiscal agent and pledged to the payment or security of bonds or other indebtedness, or obligations under a lease, installment sale, or other agreement of a local agency, or certificates of participation in those bonds, indebtedness, or lease installment sale, or other agreements, may be invested in accordance with the statutory provisions governing the issuance of those bonds, indebtedness, or lease installment sale, or other agreement, or to the extent not inconsistent therewith or if there are no specific statutory provisions, in accordance with the ordinance, resolution, indenture, or agreement of the local agency providing for the issuance. (n) Notes, bonds, or other obligations that are at all times secured by a valid first priority security interest in securities of the types listed by Section 53651 as eligible securities for the purpose of securing local agency deposits having a market value at least equal to that required by Section 53652 for the purpose of securing local agency deposits. The securities serving as collateral shall be placed by delivery or book entry into the custody of a trust company or the trust department of a bank that is not affiliated with the issuer of the secured obligation, and the security interest shall be perfected in accordance with the requirements of the Uniform Commercial Code or federal regulations applicable to the types of securities in which the security interest is granted.
(o) A mortgage passthrough security, collateralized mortgage obligation, mortgage-backed or other paythrough bond, equipment lease-backed certificate, consumer receivable passthrough certificate, or consumer receivable-backed bond. Securities eligible for investment under this subdivision shall be rated in a rating category of “AA” or its equivalent or better by an NRSRO and have a maximum remaining maturity of five years or less. Purchase of securities authorized by this subdivision shall not exceed 20 percent of the agency’s surplus moneys that may be invested pursuant to this section. (p) Shares of beneficial interest issued by a joint powers authority organized pursuant to Section 6509.7 that invests in the securities and obligations authorized in subdivisions (a) to (q), inclusive. Each share shall represent an equal proportional interest in the underlying pool of securities owned by the joint powers authority. To be eligible under this section, the joint powers authority issuing the shares shall have retained an investment adviser that meets all of the following criteria:
(1) The adviser is registered or exempt from registration with the Securities and Exchange Commission. (2) The adviser has not less than five years of experience investing in the securities and obligations authorized in subdivisions (a) to (q), inclusive.
(3) The adviser has assets under management in excess of five hundred million dollars ($500,000,000).

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(q) United States dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, International Finance Corporation, or Inter-American Development Bank, with a maximum remaining maturity of five years or less, and eligible for purchase and sale within the United States. Investments under this subdivision shall be rated in a rating category of “AA” or its equivalent or better by an NRSRO and shall not exceed 30 percent of the agency’s moneys that may be invested pursuant to this section.
(r) Commercial paper, debt securities, or other obligations of a public bank, as defined in Section 57600.

This section shall become operative on January 1, 2026. (Amended by Stats. 2020, Ch. 235, Sec. 3. (SB 998) Effective January 1, 2021.) . . .

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GOVERNMENT CODE

SECTION
53601.1.

The authority of a local agency to invest funds pursuant to Section 53601 includes, in addition thereto, authority to invest in financial futures or financial option contracts in any of the investment categories enumerated in that section.
(Added by Stats. 1983, Ch. 534, Sec. 3.)
. . .

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GOVERNMENT CODE

The limitation in this subdivision shall not apply to local agency investments in shares of beneficial interest issued by diversified management companies registered under the Investment Company Act of 1940 (15 U.S.C. Sec. 80a-1 et seq.) that are authorized for investment pursuant to subdivision (l) of Section 53601. (2) Notwithstanding the prohibition in paragraph (1), a local agency may invest in securities issued by, or backed by, the United States government that could result in zero- or negative-interest accrual if held to maturity, in the event of, and for the duration of, a period of negative market interest rates. A local agency may hold these instruments until their maturity dates.
(c) This section shall remain in effect only until January 1, 2026, and as of that date is repealed. (Amended by Stats. 2020, Ch. 235, Sec. 4. (SB 998) Effective January 1, 2021.) . . .

GOVERNMENT CODE

SECTION
53601.6.
(a) A local agency shall not invest any funds pursuant to this article or pursuant to Article 2 (commencing with Section 53630) in inverse floaters, range notes, or mortgage-derived, interest-only strips. (b) A local agency shall not invest any funds pursuant to this article or pursuant to Article 2 (commencing with Section 53630) in any security that could result in zero interest accrual if held to maturity. However, a local agency may hold prohibited instruments until their maturity dates. The limitation in this subdivision shall not apply to local agency investments in shares of beneficial interest issued by diversified management companies registered under the Investment Company Act of 1940 (15 U.S.C. Sec. 80a-1 et seq.) that are authorized for investment pursuant to subdivision (l) of Section 53601. (c) This section shall become operative on January 1, 2026. (Amended by Stats. 2020, Ch. 235, Sec. 5. (SB 998) Effective January 1, 2021.) . . .

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53601.8.

Notwithstanding any other provision of this code, a local agency that has the authority under law to invest funds, at its discretion, may invest a portion of its surplus funds in deposits at a commercial bank, savings bank, savings and loan association, or credit union that uses a private sector entity that assists in the placement of deposits. The following conditions shall apply:
(a) The local agency shall choose a nationally or state-chartered commercial bank, savings bank, savings and loan association, or credit union in this state to invest the funds, which shall be known as the “selected” depository institution.
(b) The selected depository institution may use a private sector entity to help place local agency deposits with one or more commercial banks, savings banks, savings and loan associations, or credit unions that are located in the United States and are within the network used by the private sector entity for this purpose. (c) The selected depository institution shall request that the local agency inform it of depository institutions at which the local agency has other deposits, and the selected depository institution shall provide that information to the private sector entity.
(d) Any private sector entity used by a selected depository institution to help place its local agency deposits shall maintain policies and procedures requiring all of the following:
(1) The full amount of each deposit placed pursuant to subdivision (b) and the interest that may accrue on each such deposit shall at all times be insured by the Federal Deposit Insurance Corporation or the National Credit Union Administration.
(2) Every depository institution where funds are placed shall be capitalized at a level that is sufficient, and be otherwise eligible, to receive such deposits pursuant to regulations of the Federal Deposit Insurance Corporation or the National Credit Union Administration, as applicable. (3) At the time of the local agency’s investment with a selected depository institution and no less than monthly thereafter, the private sector entity shall ensure that the local agency is provided with an inventory of all depository institutions in which deposits have been placed on the local agency’s behalf, that are within the private sector entity’s network.
(4) Within its network, the private sector entity shall ensure that it does not place additional deposits from a particular local agency with any depository institution identified pursuant to subdivision (c) as holding that local agency’s deposits if those additional deposits would result in that local agency’s total amount on deposit at that depository institution exceeding the Federal Deposit Insurance Corporation or the National Credit Union Administration insurance limit.
(e) If a selected depository uses two or more private sector entities to assist in the placement of a local agency’s deposits, the selected depository shall ensure that it does not place additional deposits from a particular local agency with a depository institution if those additional deposits would result in that local agency’s total amount on deposit at that depository institution exceeding the Federal Deposit Insurance Corporation or the National Credit Union Administration insurance limit. (f) The selected depository institution shall serve as a custodian for each such deposit. (g) On the same date that the local agency’s funds are placed pursuant to subdivision (b) by the private sector entity, the selected depository institution shall receive an amount of insured deposits from other financial institutions that, in total, are equal to, or greater than, the full amount of the principal that the local agency initially deposited through the selected depository institution pursuant to subdivision (b). (h) Notwithstanding subdivisions (a) to (g), inclusive, a credit union shall not act as a selected depository institution under this section unless both of the following conditions are satisfied:
(1) The credit union offers federal depository insurance through the National Credit Union Administration.

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(2) The credit union is in possession of written guidance or other written communication from the National Credit Union Administration authorizing participation of federally insured credit unions in one or more deposit placement services and affirming that the moneys held by those credit unions while participating in a deposit placement service will at all times be insured by the federal government. (i) It is the intent of the Legislature that this section shall not restrict competition among private sector entities that provide placement services pursuant to this section. (j) The deposits placed pursuant to this section shall be subject to Section 53638 and shall not, in total, exceed 30 percent of the agency’s funds that may be invested for this purpose. (k) This section shall become operative on January 1, 2026. (Repealed and added by Stats. 2019, Ch. 619, Sec. 3. (AB 945) Effective January 1, 2020. Section operative January 1, 2026, by its own provisions.)
. . .

GOVERNMENT CODE

SECTION
53638.
(a) The deposit shall not exceed the shareholder’s equity of any depository bank. For the purposes of this subdivision, shareholder’s equity shall be determined in accordance with Section 463 of the Financial Code, but shall be deemed to include capital notes and debentures. (b) The deposit shall not exceed the total of the net worth of any depository savings association or federal association, except that deposits not exceeding a total of five hundred thousand dollars ($500,000) may be made to a savings association or federal association without regard to the net worth of that depository, if such deposits are insured or secured as required by law. (c) The deposit to the share accounts of any regularly chartered credit union shall not exceed the total of the unimpaired capital and surplus of the credit union, as defined by rule of the Commissioner of Financial Institutions, except that the deposit to any credit union share account in an amount not exceeding five hundred thousand dollars ($500,000) may be made if the share accounts of that credit union are insured or guaranteed pursuant to Section 14858 of the Financial Code or are secured as required by law. (d) The deposit in investment certificates of a federally insured industrial loan company shall not exceed the total of the unimpaired capital and surplus of the insured industrial loan company. (Amended by Stats. 2015, Ch. 190, Sec. 64. Effective January 1, 2016.) . . .

GOVERNMENT CODE

SECTION
53646.
(a) (1) In the case of county government, the treasurer may annually render to the board of supervisors and any oversight committee a statement of investment policy, which the board shall review and approve at a public meeting. Any change in the policy shall also be reviewed and approved by the board at a public meeting.
(2) In the case of any other local agency, the treasurer or chief fiscal officer of the local agency may annually render to the legislative body of that local agency and any oversight committee of that local agency a statement of investment policy, which the legislative body of the local agency shall consider at a public City Council 44 – 50 6/6/2023
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meeting. Any change in the policy shall also be considered by the legislative body of the local agency at a public meeting.
(b) (1) The treasurer or chief fiscal officer may render a quarterly report to the chief executive officer, the internal auditor, and the legislative body of the local agency. The quarterly report shall be so submitted within 30 days following the end of the quarter covered by the report. Except as provided in subdivisions (e) and (f), this report shall include the type of investment, issuer, date of maturity, par and dollar amount invested on all securities, investments and moneys held by the local agency, and shall additionally include a description of any of the local agency’s funds, investments, or programs, that are under the management of contracted parties, including lending programs. With respect to all securities held by the local agency, and under management of any outside party that is not also a local agency or the State of California Local Agency Investment Fund, the report shall also include a current market value as of the date of the report, and shall include the source of this same valuation.
(2) The quarterly report shall state compliance of the portfolio to the statement of investment policy, or manner in which the portfolio is not in compliance.
(3) The quarterly report shall include a statement denoting the ability of the local agency to meet its pool’s expenditure requirements for the next six months, or provide an explanation as to why sufficient money shall, or may, not be available.
(4) In the quarterly report, a subsidiary ledger of investments may be used in accordance with accepted accounting practices.
(c) Pursuant to subdivision (b), the treasurer or chief fiscal officer shall report whatever additional information or data may be required by the legislative body of the local agency. (d) The legislative body of a local agency may elect to require the report specified in subdivision (b) to be made on a monthly basis instead of quarterly.
(e) For local agency investments that have been placed in the Local Agency Investment Fund, created by Section 16429.1, in National Credit Union Share Insurance Fund-insured accounts in a credit union, in accounts insured or guaranteed pursuant to Section 14858 of the Financial Code, or in Federal Deposit Insurance Corporation-insured accounts in a bank or savings and loan association, in a county investment pool, or any combination of these, the treasurer or chief fiscal officer may supply to the governing body, chief executive officer, and the auditor of the local agency the most recent statement or statements received by the local agency from these institutions in lieu of the information required by paragraph (1) of subdivision (b) regarding investments in these institutions.
(f) The treasurer or chief fiscal officer shall not be required to render a quarterly report, as required by subdivision (b), to a legislative body or any oversight committee of a school district or county office of education for securities, investments, or moneys held by the school district or county office of education in individual accounts that are less than twenty-five thousand dollars ($25,000). (g) In recognition of the state and local interests served by the actions made optional in subdivisions (a) and (b), the Legislature encourages the local agency officials to continue taking the actions formerly mandated by this section. However, nothing in this subdivision may be construed to impose any liability on a local agency that does not continue to take the formerly mandated action. (Amended by Stats. 2009, Ch. 332, Sec. 68.5. Effective January 1, 2010.) . . .

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GOVERNMENT CODE - GOV
TITLE 1. GENERAL [100 - 7914]
(Title 1 enacted by Stats. 1943, Ch. 134.)
DIVISION 7. MISCELLANEOUS [6000 - 7599.2]
(Division 7 enacted by Stats. 1943, Ch. 134.)
CHAPTER 5. Joint Exercise of Powers [6500 - 6599.3]
(Chapter 5 added by Stats. 1949, Ch. 84.)
ARTICLE 1. Joint Powers Agreements [6500 - 6539.6]
(Article 1 added by Stats. 1949, Ch. 84.)

GOVERNMENT CODE

SECTION
6509.7.
(a) Notwithstanding any other provision of law, two or more public agencies that have the authority to invest funds in their treasuries may, by agreement, jointly exercise that common power. Funds invested pursuant to an agreement entered into under this section may be invested in securities and obligations as described by subdivision (p) of Section 53601. A joint powers authority formed pursuant to this section may issue shares of beneficial interest to participating public agencies. Each share shall represent an equal proportionate interest in the underlying pool of securities owned by the joint powers authority. To be eligible under this section, the joint powers authority issuing the shares of beneficial interest shall have retained an investment adviser that meets all of the following criteria:
(1) The adviser is registered or exempt from registration with the Securities and Exchange Commission. (2) The adviser has not less than five years of experience investing in the securities and obligations authorized in subdivisions (a) to (o), inclusive, of Section 53601. (3) The adviser has assets under management in excess of five hundred million dollars ($500,000,000). (b) As used in this section, “public agency” includes a nonprofit corporation whose membership is confined to public agencies or public officials, in addition to those agencies listed in Section 6500. (c) A joint powers authority formed pursuant to this section is authorized to establish the terms and conditions pursuant to which agencies may participate and invest in pool shares. Consistent with its status as a public agency as provided under Section 6500, a federally recognized Indian tribe is eligible to participate in a joint powers authority formed under this section or otherwise invest in pool shares consistent with the terms and conditions established by the joint powers authority.
(Amended by Stats. 2020, Ch. 235, Sec. 1. (SB 998) Effective January 1, 2021.) . . .

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July 1, 2023 -
June 30, 2024
City of Santa - Annual
Statement of Investment Policy Page 47

GOVERNMENT CODE - GOV
TITLE 2. GOVERNMENT OF THE STATE OF CALIFORNIA [8000 - 22980] (Title 2 enacted by Stats. 1943, Ch. 134.)
DIVISION 4. FISCAL AFFAIRS [16100 - 17700]
(Division 4 added by Stats. 1945, Ch. 119.)
PART 2. STATE FUNDS [16300 - 16649.95]
(Part 2 added by Stats. 1945, Ch. 120.)
CHAPTER 2. Special Funds [16346 - 16429.4]
(Chapter 2 added by Stats. 1945, Ch. 120.)
ARTICLE 11. Local Agency Investment Fund [16429.1 - 16429.4] (Article 11 added by Stats. 1976, Ch. 730.)

GOVERNMENT CODE

SECTION
16429.1.
(a) There is in trust in the custody of the Treasurer the Local Agency Investment Fund, which fund is hereby created. The Controller shall maintain a separate account for each governmental unit having deposits in this fund.
(b) Notwithstanding any other law, a local governmental official, with the consent of the governing body of that agency, having money in its treasury not required for immediate needs, may remit the money to the Treasurer for deposit in the Local Agency Investment Fund for the purpose of investment. (c) Notwithstanding any other law, an officer of any nonprofit corporation whose membership is confined to public agencies or public officials, or an officer of a qualified quasi-governmental agency, with the consent of the governing body of that agency, having money in its treasury not required for immediate needs, may remit the money to the Treasurer for deposit in the Local Agency Investment Fund for the purpose of investment. (d) Notwithstanding any other law or provision of this section, a local agency, with the approval of its governing body, may deposit in the Local Agency Investment Fund proceeds of the issuance of bonds, notes, certificates of participation, or other evidences of indebtedness of the agency pending expenditure of the proceeds for the authorized purpose of their issuance. In connection with these deposits of proceeds, the Local Agency Investment Fund is authorized to receive and disburse moneys, and to provide information, directly with or to an authorized officer of a trustee or fiscal agent engaged by the local agency, the Local Agency Investment Fund is authorized to hold investments in the name and for the account of that trustee or fiscal agent, and the Controller shall maintain a separate account for each deposit of proceeds. (e) The local governmental unit, the nonprofit corporation, or the quasi-governmental agency has the exclusive determination of the length of time its money will be on deposit with the Treasurer. (f) The trustee or fiscal agent of the local governmental unit has the exclusive determination of the length of time proceeds from the issuance of bonds will be on deposit with the Treasurer. (g) The Local Investment Advisory Board shall determine those quasi-governmental agencies which qualify to participate in the Local Agency Investment Fund.
(h) The Treasurer may refuse to accept deposits into the fund if, in the judgment of the Treasurer, the deposit would adversely affect the state’s portfolio.

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July 1, 2023 -
June 30, 2024
City of Santa - Annual
Statement of Investment Policy Page 48
(i) The Treasurer may invest the money of the fund in securities prescribed in Section 16430. The Treasurer may elect to have the money of the fund invested through the Surplus Money Investment Fund as provided in Article 4 (commencing with Section 16470) of Chapter 3. (j) ) Money in the fund shall be invested to achieve the objective of the fund which is to realize the maximum return consistent with safe and prudent treasury management. (k) All instruments of title of all investments of the fund shall remain in the Treasurer’s vault or be held in safekeeping under control of the Treasurer in any federal reserve bank, or any branch thereof, or the Federal Home Loan Bank of San Francisco, with any trust company, or the trust department of any state or national bank.
(l) Immediately at the conclusion of each calendar quarter, all interest earned and other increment derived from investments shall be distributed by the Controller to the contributing governmental units or trustees or fiscal agents, nonprofit corporations, and quasi-governmental agencies in amounts directly proportionate to the respective amounts deposited in the Local Agency Investment Fund and the length of time the amounts remained therein. An amount equal to the reasonable costs incurred in carrying out the provisions of this section, not to exceed a maximum of 5 percent of the earnings of this fund and not to exceed the amount appropriated in the annual Budget Act for this function, shall be deducted from the earnings prior to distribution.

However, if the 13-week Daily Treasury Bill Rate, as published by the United States Department of the Treasury on the last day of the state’s fiscal year is below 1 percent, then the above-noted reasonable costs shall not exceed a maximum of 8 percent of the earnings of this fund for the subsequent fiscal year, shall not exceed the amount appropriated in the annual Budget Act for this function, and shall be deducted from the earnings prior to distribution. The amount of the deduction shall be credited as reimbursements to the state agencies, including the Treasurer, the Controller, and the Department of Finance, having incurred costs in carrying out the provisions of this section.
(m) The Treasurer shall prepare for distribution a monthly report of investments made during the preceding month.
(n) As used in this section, “local agency,” “local governmental unit,” and “local governmental official” includes a campus or other unit and an official, respectively, of the California State University who deposits moneys in funds described in Sections 89721, 89722, and 89725 of the Education Code. (Amended by Stats. 2014, Ch. 28, Sec. 39. Effective June 20, 2014.) . . .

City Council 44 – 54 6/6/2023
FIGURE 1

ALLOWABLE INVESTMENT INSTRUMENTS PER STATE GOVERNMENT CODE (AS OF JANUARY 1, 2023)A APPLICABLE TO ALL LOCAL AGENCIESB See “Table of Notes for Figure 1” on the next page for footnotes related to this figure.

INVESTMENT
TYPE

MAXIMUM

MATURITYC

MAXIMUM

SPECIFIED
% OF

PORTFOLIOD

MINIMUM

QUALITY

REQUIREMENTS
GOV'T
CODE

SECTIONS
Local Agency Bonds 5 years None None 53601(a)
U.S. Treasury Obligations 5 years None None 53601(b)
StateObligations—
CA And Others 5 years None None 53601(c)
53601(d)
CA Local Agency
Obligations 5 years None None 53601(e)
U.S Agency Obligations 5 years None None 53601(f)
Bankers’ Acceptances 180 days 40%E None 53601(g)
Commercial Paper—
Non-Pooled FundsF
(under $100,000,000 of investments)
270 days
orless
25% of the
agency’s moneyG
Highestletter and
numberratingbyan
NRSROH
53601(h)(2)(c)
Commercial Paper—
Non-Pooled Funds
(min. $100,000,000 of investments)
270 days
orless
40% of the
agency’s moneyG
Highestletter and
numberratingbyan
NRSROH
53601(h)(2)(c)
CommercialPaper –
Pooled FundsI
270 days
or less
40% of the
agency’s moneyG Highestletterandnumber
rating by an NRSROH 53635(a)(1)
NegotiableCertificates
ofDeposit 5 years 30%J None 53601(i)
Non-negotiable
Certificatesof Deposit 5 years None None 53630 et seq.

PlacementService
Deposits 5 years 50%K None 53601.8 and
53635.8
PlacementService
Certificatesof Deposit 5 years 50%K None 53601.8 and
53635.8
Repurchase Agreements 1 year None None 53601(j)
Reverse Repurchase
Agreements and Securities
LendingAgreements
92 daysL
20% ofthe base
value of the
portfolio
NoneM 53601(j)
Medium-Term NotesN 5 years
or less 30% “A” rating category orits equivalent or
better
53601(k)
MutualFundsAnd Money
Market Mutual Funds N/A 20% MultipleP,Q 53601(l) and53601.6(b) CollateralizedBank
DepositsR 5 years None None 53630 etseq.
and 53601(n)
MortgagePass–Through
and Asset–Backed
Securities
5 years
or less 20% “AA” rating category
or its equivalent or
better
53601(o)
CountyPooled
InvestmentFunds N/A None None 27133
Joint Powers Authority Pool N/A None MultipleS 53601(p) Local Agency Investment
Fund (LAIF) N/A None None 16429.1
VoluntaryInvestment
ProgramFundT N/A None None 16340
Supranational ObligationsU 5 years
or less 30% “AA” rating category
or its equivalent or
better
53601(q)
Public Bank Obligations 5 years None None
53601(r),
53635(c) and
57603
i. LOCAL AGENCY INVESTMENT GUIDELINES
City Council 44 – 55 6/6/2023
TABLE OF NOTES FOR FIGURE 1
A
B
C
D
E
F
G
H
I
J
K
Sources: Sections 16340, 16429.1, 27133,
53601, 53601.6, 53601.8, 53630 et seq., 53635,
53635.8, and 57603.

Municipal Utilities Districts have the authority
under the Public Utilities Code Section 12871to
invest in certain securities not addressed here.

Section 53601 provides that the maximum term
of any investment authorized under this section,
unless otherwise stated, is five years. However,
thelegislativebody may grant express authority to
makeinvestments either specifically oras a part of
an investment programapproved by the
legislative body that exceeds this five year
remaining maturity limit. Such approval must be
issued no less than three months prior to the
purchase of any security exceeding the five-year
maturity limit.

Percentages apply to all portfolio investments
regardless of source of funds. For instance, cash
froma reverse repurchaseagreement would be
subject to the restrictions.

No more than 30 percent of the agency’s money
may be in bankers’ acceptances of any one
commercial bank.

Includes agencies defined as a city, a district,
or other local agency that do not pool money in
deposits or investment with other local agencies,
other than local agencies that have the same
governing body.

Local agencies, other than counties or a city and
county, may purchase no more than 10 percent
of the outstanding commercial paper and
medium-term notes of any single issuer.

Issuing corporation must be organized and
operating within the U.S., have assets in excess
of $500 million, and debt other than commercial
paper must be in a rating category of "A" or its
equivalent or higher by a nationally recognized
statistical rating organization, or the issuing
corporation must be organized within the U.S. as
a special purposecorporation,trust,orLLC,have
program wide credit enhancements, and have
commercial paper that is rated “A-1” or higher,
or theequivalent, by a nationally recognized
statistical rating agency.

Includesagencies defined as a county, a city
and county, or other local agency that pools
money in deposits or investments with other local
agencies, including local agencies that have the
same governing body. Local agencies that pool
exclusively with other local agencies that have the
same governing body must adhere to the limits set
forth in Section 53601(h)(2)(C).

No more than 30 percent of the agency’s money
may be in negotiable certificates of deposit that
are authorized under Section53601(i).

Effective January 1, 2020, no more than 50
percent of the agency’s money may be invested in
deposits, including certificates of deposit, through
a placement service as authorized under 53601.8
(excludes negotiable certificates of deposit
authorized under Section 53601(i)). On January
1, 2026, the maximum percentage of the portfolio
reverts back to 30 percent. Investments made
pursuant to 53635.8 remain subject to a maximum
of 30 percent of the portfolio.

L
M
N
O
P
Q
R
S
T
U
Reverse repurchase agreements or securities
lending agreements may exceed the 92-day
term if the agreement includes a written codicil
guaranteeing a minimumearning orspreadforthe
entire period between the sale of a security using
a reverse repurchase agreement or securities
lending agreement and the final maturity dates of
the same security.

Reverse repurchase agreements must be made
with primary dealers of the Federal ReserveBank
of NewYork or with a nationally or state chartered
bank that has a significant relationship with the
local agency. The local agency must have held
the securities used for the agreements for at
least 30 days.
“Medium-termnotes”are defined inSection 53601
as “all corporate and depository institution debt
securities with a maximum remaining maturity of
five yearsorless, issued bycorporationsorganized
and operating within the United States or by
depositoryinstitutionslicensedbytheUnitedStates
or any state andoperatingwithinthe UnitedStates.”
No more than 10 percent invested in any one
mutual fund. This limitation does not apply to
money market mutualfunds.

A mutual fund must receive the highest ranking
by not less than two nationally recognized rating
agencies or the fund must retain an investment
advisor who is registered with the SEC(or exempt
from registration), has assets under management
in excess of $500 million, and has at least
five years' experience investing ininstruments
authorized by Sections 53601 and53635.

A money market mutual fund must receive the
highest ranking by not less than two nationally
recognized statistical rating organizations or
retain an investment advisor registered withthe
SEC or exempt from registration and who has
not less thanfive years' experience investing in
money market instruments with assets under
management in excess of $500 million.

Investments in notes, bonds, or other obligations
under Section 53601(n) require that collateral be
placed into the custody of a trust company or the
trust department of a bank that is not affiliated
with the issuer of the secured obligation, among
other specific collateral requirements.

A joint powers authority pool must retain an
investment advisor who is registered with the
SEC (or exempt from registration), has assets
under management in excess of $500 million,
andhas at leastfive years' experienceinvesting
in instruments authorized by Section 53601,
subdivisions (a) to (o).

Local entities can deposit between $200 million
and $10 billion into the Voluntary Investment
Program Fund, upon approval by their governing
bodies. Deposits in the fund will be invested in the
Pooled Money Investment Account.

Only those obligations issued or unconditionally
guaranteed by the International Bank for
Reconstruction and Development (IBRD),
International Finance Corporation (IFC), and
Inter-AmericanDevelopmentBank(IADB), witha
maximum remaining maturity of five years or less.
ii. LOCAL AGENCY INVESTMENT GUIDELINES City Council 44 – 56 6/6/2023 Some investments, such as straight floaters or floating rate notes that are not otherwise prohibited, have the potential to result in zero interest accrual. Before purchasing these types of investments, the local agency should evaluate all possible outcomes, and, as a safeguard, should consider including in its investment policy a statement establishing an acceptable positive spread or floor for all securities, which pay interest based on a spread to an index. Also, while not expressly prohibited by state law, unregistered securities, such as Rule 144A securities, may not be purchased by local agencies because local agencies do not meet the threshold of $5 million investments and $100 million in securities. On August 26, 2020 the Securities and Exchange Commission expanded the definition of Qualified Institutional Buyers (QIB) 2 to include any institution that qualifies as an accredited investor under Rule 501(a) under the Securities Act that are not otherwise stated in the definition of “qualified institutional buyer” provided they satisfy the $100 million threshold.3
2 CDIAC'sIssue Brief: Rule 144A Securities, provides a summary of securitiesin this class.

Section 53635.2 states that all local agency money may be invested in investments set forth in 53601 or deposited for safekeeping in state or national banks, public banks, savings associations, federal associations, credit unions, or federally insured industrial loan companies in this state. It also specifies certain requirements that such financial institutions must satisfy to hold local agency money.

MINIMUM LEGAL REQUIREMENT:

To be eligible to receive local agency money, a financial institution must receive an overall rating of not less than “satisfactory” from the appropriate federal supervisory agency for meeting the criteria specified in Section 2906 of Title 12 of the U.S. Code (Community Reinvestment Act of 1977). The Community Reinvestment Act of 1977 (Act) requires financial institutions to demonstrate their commitment to meeting the credit needs of local communities in which they are chartered to do business. For the purpose of the Act, the appropriate federalsupervisory agency includes:
• The Comptroller of the Currency
with respect to national banks;
• The Board of Governors of the
Federal Reserve System with respect
to state chartered banks that are
members of the Federal Reserve
systemand bank holdingcompanies;
• The Federal Deposit Insurance
Corporation (FDIC)with respect
to state chartered banks, public
banks, and savings banks that are
not members of the Federal Reserve
system and the deposits of which
are insured by the FDIC; and
• The Director of Office of Thrift
Supervision with respect to savings
associations (the deposits of which
are insured by the FDIC) and
savings holding companies.
iii. LOCAL AGENCY INVESTMENT GUIDELINES
II. B What requirements must a financial
institution satisfybefore a localagency
may deposit its money in it? [Section 53635.2]
City Council 44 – 57 6/6/2023
City of Santa Annual
Statement of Investment Policy Page A July 1, 2023
June 30, 2024
APPENDIX III.

GLOSSARY OF CITY OF SANTA ANA

INVESTMENT POLICY & RELATED CALIFORNIA CODE TERMS
AGENCIES: Federal agency securities and/or Government Sponsored Enterprises (GSE). [Referenced pages: 9, 10, 11, 16, 18, 31]
ASSET- BACKED SECURITES (ABS): securities supported by pools of installment loans or leases or by pools of revolving lines of credit. [Referenced page: 14] ASSOCIATION OF PUBLIC TREASURERS OF THE UNITED STATES AND CANADA: The Association of Public Treasurers of the United States and Canada (APTUS&C), formerly called the Municipal Treasurers Association of the United States and Canada (MTA US & C) was founded in 1965 and represents public treasury and finance officials in local, county, and state/provincial governments throughout North America.

The Association provides educational seminars and conferences, publications, policy and legislative information, and technical assistance to members. [Referenced pages: 6, 21] BENEFICIAL SHARES/MONEY MARKET SHARES: In US securities law, a beneficial owner (as distinct from a "nominee owner," "registered owner," or "record holder") of a security includes any person who, directly or indirectly, has or shares voting or investment power also known as money market shares. [Referenced pages:
12, 18]
BENCHMARK: A comparative base for measuring the· performance or risk tolerance of the investment portfolio. A benchmark should represent a close correlation to the level of risk and the average duration of the portfolio's investments. [Referenced pages: 5, 19]
BILLS OF EXCHANGE/BANKERS ACCEPTANCE (BA): A draft or bill or exchange accepted by a bank or trust company. The accepting institution guarantees payment of the bill, as well as the issuer. These instruments are accepted as payment by banks engaged in financing trade. For example, a U.S. corporation planning to purchase goods from a foreign vendor will ask its bank to issue a letter of credit on behalf of the corporation. The letter of credit will allow the foreign vendor to draw a draft on the U.S. corporation’s bank to pay for the merchandise. Upon receipt of the letter and the draft, the foreign vendor will ship the merchandise and present the draft at its bank, which allows the vendor to receive payment for the merchandise sold. The vendor’s foreign bank forwards the draft to the U.S. bank, at which point the draft is “accepted” as an obligation that the purchaser’s U.S. bank must pay at a specified maturity date. The U.S. bank may keep the acceptance or may sell it to a third party investor. Bankers’ acceptances are sold at a discount and are considered fairly safe investment instruments because both the purchaser’s bank and the initiating corporation are obligated to pay the holder at maturity. [Referenced pages: 10, 18, 31] BOOK VALUE: The value at which a debt security is shown on the holder's balance sheet. Book value is acquisition cost less amortization of premium or plus accretion of discount. [Referenced pages: 4, 13, 20] BOOK ENTRY: An electronic system of accountability, custody, transfer, and settlement of securities. Bookentry systems allow rapid and accurate transfers of securities with simultaneous cash settlement. [Referenced pages: 31, 33, 35]
BROKER: A broker brings buyers and sellers together for a commission. [Referenced page: 11] City Council 44 – 58 6/6/2023
City of Santa - Annual
Statement of Investment Policy
July 1, 2023 -
June 30, 2024 Page B
BROKER-DEALER: Broker-dealer is used in securities regulation parlance to describe stock and securities brokerages, because most act as both agents and principals. A brokerage acts as a broker (or agent) when it executes orders on behalf of clients and acts as a dealer, or principal, when it trades for its own account. A broker-dealer is a natural person, company or other organization that engages in the business of trading securities for its own account or on behalf of its customers. [Referenced pages: 3, 8, 9, 24, 25] CALIFORNIA MUNICIPAL TREASURERS ASSOCIATION (CMTA): Is the professional society of active public treasurers of California counties, cities and special districts. It sets ethical standards for the treasury profession in state and local governments in California. The Association provides educational seminars and conferences, publications, policy and legislative information, and technical assistance to members. [Referenced pages: 6, 21]
CERTIFICATE OF DEPOSIT/NEGOTIABLE CERTIFICATE OF DEPOSIT (CD): A time deposit with a specific maturity evidenced by a certificate. Time certificates of deposit are collateralized in accordance with the State code. Large-denomination CD's are typically negotiable and non-collateralized. These instruments are issued by depository institutions such as commercial banks, savings institutions and credit unions against funds invested for a specified time period (typically between 0 to 5 years). The term “CD” by itself generally refers to negotiable certificates of deposit that can be resold to other parties. CDs, however, also may be nonnegotiable. Nonnegotiable CDs cannot be actively traded on the secondary markets and generally are held to maturity by the party that purchased them. Yields on CDs vary depending on liquidity, credit quality; and, for nonnegotiable CDs, whether they are collateralized. [Referenced pages: 11, 17, 18, 32] 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. [Referenced pages: 10, 11, 14, 16, 17, 32, 33, 35]
COLLATERLIZED MORTGAGE OBLIGATION (CMO): Mortgage backed bond that separates mortgage pools into different maturity classes called traunches. CMO’s are issued by Federal National Mortgage Corp. and Federal National Mortgage Association and are usually backed with a government guarantee and have an AAA bond rating. Planned Amortization Class CMOs (PAC) have stable prepayment schedules that do not react unfavorably in wide market swings. [Referenced page: 35] COMMERCIAL PAPER (CP): An unsecured obligation issued by a corporation or bank to finance its shortterm credit needs, such as accounts receivable, payroll, and inventory. Commercial paper is usually issued by companies with high credit ratings, meaning that the investment is almost always relatively low risk. Maturities typically range from 2 to 270 days. [Referenced pages: 10, 18, 30, 32] COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR): The official annual report of the (entity). It includes five combined statements for each individual fund and account group prepared in conformity with GAAP. It also includes supporting schedules necessary to demonstrate compliance with finance-related legal and contractual provisions, extensive introductory material, and a detailed Statistical Section. [Referenced page: 1]
CONSTANT MATURITY TREASURY (CMT) RATE: CMT rate is an adjustment for equivalent maturity, used by the Federal Reserve Board to compute an index based on the average yield of various Treasury securities maturing at different periods. [Referenced pages: 5, 19] CORPORATE BOND: A debt security issued by corporation and sold to investors. The backing for the bond is usually the payment ability of the company, which is typically money to be earned from future operations. [Referenced page: 6]
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Statement of Investment Policy
July 1, 2023-
June 30, 2024 Page C
CREDIT QUALITY: The measurement of the financial strength of a bond issuer. This measurement helps an investor to understand an issuer’s ability to make timely interest payments and repay the loan principal upon maturity. Generally, the higher the credit quality of a bond issuer, the lower the interest rate paid by the issuer because the risk of default is lower. Credit quality ratings are provided by nationally recognized rating agencies. [Referenced page: 4]
CREDIT RISK: The risk to an investor that an issuer will default in the payment of interest and/or principal on a security. [Referenced pages: 2, 3, 17]
DEALER: A dealer, as opposed to a broker, acts as a principal in all transactions, buying and selling for his own account. [Referenced pages: 3, 8, 9, 24, 25]
DELIVERY VERSUS PAYMENT: There are two methods of delivery of securities: delivery versus payment and delivery versus receipt. Delivery versus payment is delivery of securities with an exchange of money for the securities. Delivery versus receipt is delivery of securities with an exchange of a signed receipt for the securities. See Safekeeping and Custody: [Referenced pages: 17, 19, 31] DERIVATIVE: Financial instruments which have a principal and/or interest payment subject to uncertainty as to timing and/or amount including financial instruments whose return profile is linked to, or derived from, the movement of one or more underlying index or security, and may include a leveraging factor, or financial contracts based upon notional amounts whose value is derived from an underlying index or security (interest rates, foreign exchange rates, equities or commodities). [Referenced page: 14] DIVERSIFICATION: Dividing investment funds among a variety of securities offering independent returns. [Referenced page: 17]
DURATION: Is a measure of time (term of investment) which also is a measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. Duration is expressed as a number of years. Rising interest rates mean falling bond prices, while declining interest rates mean rising bond prices. [Referenced pages: 4, 18]
FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC): A federal agency that insures bank deposits, currently up to $250,000 per deposit. FEDERAL FUNDS RATE: The rate of interest at which Fed funds are traded. This rate is currently pegged by the Federal Reserve through open-market operations. [Referenced pages: 29, 36, 37, 39]
FEDERAL FARM CREDIT BANK (FFCB): Notes are high credit quality, short-term debt instruments, issued at a discount to their par amount, similar to U.S. Treasury bills. FFCB provides a steady and continuous stream of capital for the agricultural sector in all 50 states and Puerto Rico. Presently, the Farm Credit System funds approximately 35 percent of all U.S. farm business debt. [Referenced page: 9] FEDERAL HOME LOAN BANKS (FHLB): Government sponsored wholesale banks (currently 12 regional banks) which lend funds and provide correspondent banking services to member commercial banks, thrift institutions, credit unions and insurance companies. The mission of the FHLB is to liquefy the housing related assets of its members who must purchase stock in their district Bank. [Referenced pages: 9, 16, 28, 29] FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA): FNMA, like GNMA was chartered under the Federal National Mortgage Association Act in 1938. FNMA is a federal corporation working under the auspices of the Department of Housing and Urban Development (HUD). It is the largest single provider of residential mortgage funds in the United States. Fannie Mae, as the corporation is called, is a private stockholder-owned corporation. The corporation's purchases include a variety of adjustable mortgages and second loans, in addition to fixed-rate mortgages. FNMA's securities are also highly liquid and are widely accepted.

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City of Santa - Annual
Statement of Investment Policy
July 1, 2023 -
June 30, 2024 Page D
FNMA assumes and guarantees that all security holders will receive timely payment of principal and interest. [Referenced page: 9]
FEDERAL RESERVE: The central bank of the United States created by Congress and consisting of a seven member Board of Governors in Washington, D.C., 12 regional banks and about 5,700 commercial banks that are members of the system. [Referenced pages: 8, 10, 28, 33, 34] FIDUCIARY: Person, company, or association holding assets in trust of a beneficiary. [Referenced pages: 15, 25]
FINANCIAL INDUSTRY REGULATORY AUTHORITY, INC. (FINRA): FINRA is a private corporation that acts as a self-regulatory organization (SRO). FINRA is the successor to the National Association of Securities Dealers, Inc. (NASD) and the member regulation, enforcement and arbitration operations of the New York Stock Exchange. It is a non-governmental organization that regulates member brokerage firms and exchange markets. The government agency which acts as the ultimate regulator of the securities industry, including FINRA, is the Securities and Exchange Commission. [Referenced page: 8, 9] FUTURES CONTRACT: Agreement to buy or sell a specific amount of a commodity or financial instrument at a particular price on a stipulated future date. [Referenced pages: 9, 35]

EX OFFICIO: Ex officio describe a position someone automatically gains because of another job or position he/she already holds. For example, the United States Vice President is the ex officio President of the Senate.

In a like fashion, in accordance with the California Government Code the Chief Fiscal Officer of a city which does have a specified City Treasurer is “ex officio” City Treasurer. [Referenced page: 6] GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA or Ginnie Mae): Securities influencing the volume of bank credit guaranteed by GNMA and issued by mortgage bankers, commercial banks, savings and loan associations, and other institutions. Security holder is protected by full faith & credit of the U.S.

Government. Ginnie Mae securities are backed by FHA, VA or FHA mortgages. The term "pass-throughs" is used to describe Ginnie Maes. [Referenced page: 9]
GAAP (GENERALLY ACCEPTED ACCOUNTING PRINCIPLES): Is a collection of commonly-followed accounting rules and standards for financial reporting. The acronym is pronounced "gap." GAAP specifications include definitions of concepts and principles, as well as industry-specific rules. [Referenced page: 2]
GUARANTEED INVESTMENT AGREEMENTS OR CONTRACTS (GIC): An agreement or contract that guarantees repayment of principal and a fixed or floating interest rate for a predetermined period of time. [Referenced page: 14]
INTEREST: The amount earned while owning a debt security, generally calculated as a percentage of the principal amount. [Referenced pages: 3, 14, 16, 17, 18, 28, 31, 36] INVERSE FLOATER: A bond or other type of debt whose coupon rate has an inverse relationship to a benchmark rate. An inverse floater adjusts its coupon payment as the interest rate changes. (Referenced pages: 14, 36]
INVESTMENT POLICY: A concise and clear statement of the objectives and parameters formulated by an investor or investment manager for a portfolio of investment securities. [Referenced pages: 1, 2, 3, 5, 6, 8, 11, 12, 13, 16, 20, 21, 22, 24, 38]
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ISSUER: A legal entity that has the power to issue and distribute securities. Issuers include corporations, municipalities, foreign and domestic governments and their agencies, and investment trusts. [Referenced pages: 3, 7, 12, 17, 20, 25, 30, 32, 33, 35, 38]
JOINT POWERS AUTHORITIES (JPAs): JPAs are legally created entities that allow two or more public agencies to jointly exercise common powers. Forming such entities permits public agencies with the means to provide services more efficiently and in a cost-effective manner such as JPA investment pools. The Joint Exercise of Powers Act, as codified in California Government Code Section 6500, governs JPAs. Under the Act, JPAs are restricted to use by public agencies only. However, the term public agency is defined very broadly. A public agency can include, but is not limited to, the federal government, the state or state departments, local agencies, mutual water companies, public districts and recognized Indian tribes. [Referenced pages: 15, 35]
LIQUIDITY: Liquidity describes the degree to which an asset or security can be quickly bought or sold in the market without affecting the asset's price. [Referenced pages: 2, 3, 4, 11, 13, 19, 21] LOCAL AGENCY/PUBLIC LOCAL AGENCY: Means a county, city, city and county, including a chartered city or county, school district, community college district, public district, county board of education, county superintendent of schools, or any public or municipal corporation. [Referenced pages: 10, 11, 12, 15, 18, 20, 22, 24, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37, 38, 39] LOCAL AGENCY INVESTMENT FUND (LAIF): A voluntary program created by statute in 1977 as an investment alternative for California's local governments and special districts. Local agencies may participate in the state’s portfolio, which invests hundreds of millions of dollars, using the investment expertise of the Treasurer's Office investment staff at no additional cost to the taxpayer. LAIF is part of the Pooled Money Investment Account (PMIA). The PMIA began in 1955 and oversight is provided by the Pooled Money Investment Board (PMIB) and an in-house Investment Committee. The PMIB members are the State Treasurer, Director of Finance, and State Controller. The Local Investment Advisory Board (LIAB) provides oversight for LAIF. The Board consists of five members as designated by statute. The State Treasurer, as Chairman, or his designated representative appoints two members qualified by training and experience in the field of investment or finance, and two members who are treasurers, finance or fiscal officers or business managers employed by any county, city or local district or municipal corporation of this state. [Referenced pages: 11, 15, 18, 27, 28, 38, 39]
LOCAL GOVERNMENT INVESTMENT POOL (LGIP): The aggregate of all funds from political subdivisions that are placed in the custody of the State Treasurer for investment and reinvestment. [Referenced page: 15] MARKET RISK: The risk that the value of a security will rise or decline as a result of changes in market conditions. [Referenced page: 13]
MARKET VALUE: The price at which a security is trading and could presumably be purchased or sold. [Referenced pages: 3, 4, 5, 10, 16, 20, 32, 35, 38)
MASTER REPURCHASE AGREEMENT: A written contract covering all future transactions between the parties to repurchase or reverse repurchases a security 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. [Referenced page: 10] MATURITY: The date upon which the principal or stated value of an investment becomes due and payable. [Referenced pages: 3, 4, 5, 9, 10, 11, 12, 13, 14, 18, 19, 20, 21, 31, 32, 33, 34, 35, 36, 38] City Council 44 – 62 6/6/2023
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MEDIUM TERM CORPORATE NOTES (MTN): Refers to all corporate and depository institution debt securities with a maximum remaining maturity of five years or less, issued by corporations organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States. [Referenced pages: 12, 18] MONEY MARKET: The market in which short-term debt instruments (bills, commercial paper, bankers' acceptances, etc.) are issued and traded. A money market mutual fund is a type of fixed income mutual fund that invests in debt securities characterized by their short maturities and minimal credit risk. Money market securities must be highly liquid and of the highest quality, thus money market mutual funds are among the lowest-volatility types of investments. [Referenced pages: 4, 12, 13, 15, 17, 18, 34] MONEY MARKET FUNDS: Seek to limit exposure to losses due to credit, market, and liquidity risks. Money market funds in the United States are regulated by the Securities and Exchange Commission (SEC) under the Investment Company Act of 1940. Rule 2a-7 of the act restricts the quality, maturity and diversity of investments by money market funds. Under this act, a money fund mainly buys the highest rated debt, which matures in under 13 months. The portfolio must maintain a weighted average maturity (WAM) of 60 days or less and not invest more than 5% in any one issuer, except for government securities and repurchase agreements. Unlike most other financial instruments, money market funds seek to maintain a stable value of $1 per share. Funds are able to pay dividends to investors. [Referenced pages: 12, 34] MUTUAL FUND: An investment vehicle that is made up of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments and similar assets.

Mutual funds are operated by money managers, who invest the fund's capital and attempt to produce capital gains and income for the fund's investors. A mutual fund's portfolio is structured and maintained to match the investment objectives stated in its prospectus. A money market mutual fund is a type of fixed income mutual fund that invests in debt securities characterized by their short maturities and minimal credit risk. [Referenced pages: 4, 13, 15, 17, 34]
MORTGAGE PASS-THROUGH SECURITY: These instruments are based on pooled home mortgages sold by federal agencies and instrumentalities such as Ginnie Mae and Freddie Mac. The amount of principal and interest paid to investors varies from month to month in part because homeowners may accelerate principal payments on a mortgage. The anticipated pay down schedule of the securities will vary from mortgage pool to mortgage pool. Mortgage pass-through securities are complex investment instruments that do not respond to market forces like other, more standard investment instruments. In a declining interest rate environment, mortgage pass-through investors face higher reinvestment risk and lower returns from their investment than investors in other instruments because homeowners tend to refinance in lower interest rate environments, accelerating the principal payments on their mortgages. Thus, the mortgage pass-through investor receives the accelerated principal payments at par and must reinvest these earnings in a lower interest rate environment. [Referenced page: 35]
NATIONAL ASSOCIATION OF STATE TREASURERS (NAST]: Provides advocacy and support that enables member states to pursue and administer sound financial policies and programs benefiting the citizens of the nation. The Association provides educational seminars and conferences, publications, policy and legislative information, and technical assistance to members. [Referenced page: 6] NATIONALLY RECOGNIZED STATISTICAL RATING ORGANIZATION (NRSRO]: A NSRO is a credit rating agency (CRA] that issues credit ratings that the U.S. Securities and Exchange Commission (SEC] permits other financial firms to use for certain regulatory purposes. [Referenced pages: 10, 12, 32, 34, 35] OPTION: Right to buy or sell property that is granted in exchange for an agreed upon sum. If the right is not exercised after a specified period, the option expires and the option buyer forfeits the money. [Referenced page: 35]
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PAR AMOUNT: The face amount or value of a bond. [Referenced pages: 19, 20] PASS-THOUGH SECURITY: A pool of fixed income securities backed by a package of assets (i.e. mortgages) where the holder receivesthe principal andinterest payments. [Referenced page: 35] PERFECTED INTEREST: Perfected interest refers to establishment of a superior ownership right in and legal control over securities assets held by a bank custodian on the purchaser's behalf and is intended to protect the purchaser from the custodial bank’s own creditors in the event of a bank default and filing for bankruptcy. [Referenced page: 17]
PORTFOLIO: Collection of securities held by an investor. [Referenced pages: 1, 2, 3, 4, 5, 6, 7, 9, 10, 11, 12, 13, 14, 16, 17, 18, 19, 21, 27, 33, 38]
PRINCIPAL: The face value or par value of an investment. [Referenced pages: 3, 4, 9, 14, 21, 31, 37] PRUDENT INVESTOR STANDARD: A standard defined under State Government Code Section 53600.3 that states 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 City, 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 local agency. [Referenced pages: 2, 9, 12]
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 the current income return. [Referenced pages: 4, 13, 19] 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. (E.g. - A contract in which the seller of securities, such as Treasury Bills, agrees to buy them back at a specified time and price; also called buyback.) See also Master Repurchase Agreement. [Referenced pages: 10, 11, 14, 17, 18, 31, 32, 33, 34]
REVERSE REPURCHASE AGREEMENT (REVERSE RP or REPO): A reverse-repurchase agreement (reverse repo) involves an investor borrowing cash from a financial institution in exchange for securities. The investor agrees to repurchase the securities at a specified date for the same cash value plus an agreed upon interest rate. Although the transaction is similar to a repo, the purpose of entering into a reverse repo is quite different. While a repo is a straightforward investment of public funds, the reverse repo is a borrowing. [Referenced pages: 14, 31, 32, 33, 34]
SAFEKEEPING AND CUSTODY: In a third-party safekeeping agreement, the local government agency arranges for a firm other than the party that sold the investment to provide for the transfer and safekeeping of the securities. Financial firms should not serve as both government broker-dealer and custodian. Safekeeping represents a financial institution’s obligation to act on behalf of the owner under the owner’s control. Custody is a more clearly defined control position by the agent responding to the owner’s requirements. Custody normally does not take place in the governmental entities depository bank. Investments should be settled in a delivery-versus-payment (DVP) basis. In this procedure, the buyer's payment for securities is due at the time of delivery. Security delivery and payment occur simultaneously. This practice ensures that no funds are at risk in an investment transaction as funds are not released until securities are delivered, ensuring the governmental entity has either money or securities at all times during the transaction. [Referenced page: 17] City Council 44 – 64 6/6/2023
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SECONDARY MARKET: A market made for the purchase and sale of outstanding issues following the initial distribution. [Referenced page: 4]
SECURITIES ACT OF 1933, SECTION 5, RULE 144A SECURITIES: Unregistered securities – purchases of private resales of unregistered securities to institutions, by Securities and Exchange Commission defined Qualified Institution Buyers (QIBs) who are judged sophisticated enough to understand the complexities and risks inherent in private placements. Local Agencies that qualify as an accredited investor under the Rule 501(a) of the Securities Act are deemed QIBs provided that they can meet a $100 million in invested securities threshold. [Referenced page: 15]
SECURITIES AND EXCHANGE COMMISSION: Agency created by Congress to protect investors in securities transactions by administering securities legislation. [Referenced pages: 12, 13, 34, 35] SPECULATION: Assumption of risk in anticipation of gain but recognizing a higher than average possibility of loss. [Referenced page: 15]
SWAP: Trading one asset for another. [Referenced page: 4] SUPRANATIONAL OBLIGATIONS: United States dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, International Finance Corporation, or Inter-American Development Bank, with a maximum remaining maturity of five years or less, and eligible for purchase or sale within the United States. [Referenced pages: 10, 18]
TREASURIES: Negotiable U.S. Government debt obligations, backed by its full faith and credit, comprising of short-term Treasury Bills (maturity less than one year), medium-term Treasury Notes (maturity one to ten years), and long-term Treasury bonds (maturity from 10 to 30 years). [Referenced pages: 3, 5, 17] TREASURY BILLS (T-Bills): A non-interest bearing discount security issued by the US Treasury to finance the national debt. A T-Bill is a short-term debt obligation backed by the U.S. government with a maturity of less than one year, sold in denominations of $1,000 up to a maximum purchase of $5 million. T-bills are sold with maturities of four, thirteen, twenty-six and fifty-two weeks. They do not pay interest, but rather are sold a discount to their face value. Effective interest is earned at maturity. [Referenced pages: 9, 11, 17, 18] TREASURY BONDS (T-Bonds): Long-term coupon-bearing US Treasury securities issued as direct obligations of the US Government and having initial maturities of more than 10 to 30 years. Next to treasury bills (maturity less than one year), and treasury notes (maturity one to ten years) T-bonds are the safest form of marketable investment. [Referenced pages: 9, 11, 17, 18] TREASURY NOTES: Medium-term coupon-bearing US Treasury securities issued as direct obligations of the US Government and having initial maturities from one to 10 years. Treasury notes are available from the government with either a competitive or noncompetitive bid. [Referenced pages: 9, 11, 17, 18, 31] WEIGHTED AVERAGE MATURITY (WAM): The average maturity of all the securities that comprise a portfolio. According to SEC rule 2a-7, the WAM for SEC registered money market mutual funds may not exceed 90 days and no one security may have a maturity that exceeds 397 days. [Referenced page: 20] YIELD: The rate of annual income return on an investment, expressed as a percentage: (a) Income Yield is obtained by dividing the current dollar income by the current market price for the security; (b) Net Yield or Yield to Maturity is the current income 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. [Referenced pages: 3, 4, 5, 19, 21]
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APPENDIX IV.

GLOSSARY OF ADDITIONAL COMMON PUBLIC LOCAL AGENCY

INVESTMENT TERMS
ACCRUED INTEREST: The accumulated interest payable on a security since the last interest payment made by the issuer.

AMORTIZATION: The systematic reduction of the amount owed on a debt issue through periodic payments of principal.

ASKED PRICE (OR ASK): The price at which securities are offered.

BASIS POINT: A unit of measurement used in the valuation of fixed-income securities equal to 1/100 of 1 percent of yield, e.g., “1/4” of 1 percent is equal to 25 basis points.

BID PRICE: The price offered by a buyer of securities. (When you are selling securities, you ask for a bid.) See Offer Price.

CALIFORNIA DEBT AND INVESTMENT ADVISORY COMMISSION (CDIAC): This California state commission provides information, education and technical assistance on debt issuance and public fund investments to local public agencies and other public finance professionals. The Commission was created in 1981 as the California Debt Advisory Commission to function as the State's clearinghouse for public debt issuance information and is tasked to assist state and local agencies with the monitoring, issuance and management of public debt. The Commission's name was changed to the California Debt and Investment Advisory Commission with the passage of Chapter 833, Statutes of 1996 (AB 1197), and its mission was expanded to cover public investments.

CALIFORNIA SOCIETY OF MUNICIPAL FINANCE OFFICERS (CSMFO): Is a professional association of state, county, and local government finance officers in California. A statewide organization serving all California municipal finance professionals, an affiliate of the nationwide Government Finance Officers Association (GFOA), membership is open to anyone in the State of California actively engaged in government finance in any city, county, or special district. CSMFO has technical and professional committees that deal with financial issues facing government and the public.

CALLABLE SECURITIES: A security that can be redeemed by the issuer before the scheduled maturity.

CALL PRICE (OR CALL): The price at which an issuer may redeem a bond prior to maturity. The price is usually at a slight premium to the bond’s original issue price to compensate the holder for loss of income and ownership.

CalTRUST (INVESTMENT TRUST OF CALIFORNIA): An investment pool partnership authorized under California state law created by the CSAC (California State Association of Counties) Finance Corporation and the League of California Cities to provide a convenient method for local agencies to pool their assets for investment. State statute authorizes local agencies to directly invest in joint investment pools, such as CalTRUST. There is no requirement that a local agency become a JPA member. Local agencies have four account options – Government Fund, Money Market Fund, Short-Term, or Medium-Term accounts. Local agencies can select an account option which matches their investment time horizon and cash flow needs and easily reallocate among accounts as those needs change.

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CERTIFICATE OF DEPOSIT ACCOUNT REGISTRY SERVICE (CDARS): A program with an approved depository that removes the need for collateral by providing full FDIC insurance for certificates of deposit.

COLLATERALIZED BANK DEPOSITS: Collateralized bank deposits can be broadly defined as notes, bonds, and other obligations (such as nonnegotiable CDs) that are secured at all times by valid first party interest in collateral. For California local agencies, the collateral must meet specified Government Code requirements.

CONVEXITY: Is the measure of the curve in the relationship between a bond's price and its yield. Consider the price and yield of Bond A on a graph, where price is marked on the vertical axis, and yield on the horizontal.

A bond's price and yield are inversely related, so as its price decreases, its yield increases.

CURRENT YIELD (CURRENT RETURN): A yield calculation determined by dividing the annual interest received on a security by the current market price of that security.

CUSTODIAN BANK: A financial institution that holds customers' securities for safekeeping to minimize the risk of their theft or loss. A custodian holds securities and other assets in electronic or physical form.

CUSIP: CUSIP or CUSPIC number stands for Committee on Uniform Securities Identification Procedures. A CUSIP number identifies most financial instruments, including: stocks of all registered U.S. and Canadian companies, commercial paper, and U.S. government and municipal bonds. The CUSIP system (formally known as CUSIP Global Services)—owned by the American Bankers Association and managed by Standard & Poor’s - facilitates the clearance and settlement process of securities. CUSIP numbers consist of nine characters (including letters and numbers) that uniquely identify a company or issuer and the type of financial instrument. A similar system is used to identify foreign securities (CUSIP International Numbering System or CINS). CINS employs the same nine character identifier as CUSIP, but also contains a letter in the first position to signify the issuer's country or geographic region.

DEBENTURE: A bond secured only by the general credit of the issuer.

DISCOUNT: The difference between the cost price of a security and its maturity when quoted at lower than face value. A security selling below original offering price shortly after sale also is considered to be at a discount.

DISCOUNT SECURITIES: Non-interest bearing money market instruments that are issued a discount and redeemed at maturity for full face value (e.g. - U.S. Treasury Bills).

FAIR VALUE: The amount at which an investment could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

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

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

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

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INVERTED YIELD CURVE: A chart formation that illustrates long-term securities having lower yields than short-term securities. This configuration usually occurs during periods of high inflation coupled with low levels of confidence in the economy and a restrictive monetary policy.

INVESTMENT-GRADE OBLIGATIONS: An investment instrument suitable for purchase by institutional investors under the prudent person rule. Investment-grade is restricted to those obligations rated BBB or higher by a rating agency.

LADDERING: Is a bond investment strategy whereby an investor staggers the maturity of the bonds in his/her portfolio so that the bond proceeds can be reinvested at regular intervals. Laddering avoids the risk of reinvesting a large portion of assets in an unfavorable financial environment. Each "rung" of the ladder is a bond of a specific maturity date and the "height" of the ladder is the difference between the shortest maturity bond and the longest maturity bond. Benefits of utilizing a rolling inventory of bonds with “laddered” maturities are primarily three-fold:
(1) Interest rate risk is decreased by holding both short-term and long-term bonds thereby spreading risk along the interest rate curve. If rates are rising, as one bond matures the funds can be re-invested into higher yield bonds.
(2) - Decrease re-investment risk because as one bond in the ladder matures, the cash is re-invested, but it only represents a portion of the total portfolio. Even if prevailing rates at the time of re-investment are lower than the previous bond was returning, the smaller amount of reinvestment dollars mitigates the risk of investing a lot of cash at a low return.
(3) - Maintain steady cash flows to encourage regular saving to encourage an income-producing portfolio.

MARK-TO-MARKET: The process whereby the book value or collateral value of a security is adjusted to reflect its current market value.

OFFER PRICE (OR OFFER): The price asked by a seller of securities. (When you are buying securities, you ask for an offer.) See Asked Price and Bid Price.

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.

PASSBOOK SAVINGS ACCOUNT: A savings account in which deposits and withdrawals are recorded in the depositor's passbook.

QUALIFIED PUBLIC DEPOSITORIES: A financial institution which does not claim exemption from the payment of any sales or compensating use or ad valorem taxes under the laws of this state, which has segregated for the benefit of the commission eligible collateral having a value of not less than its maximum liability and which has been approved by the Public Deposit Protection Commission to hold public deposits.

REINVESTMENT RISK: The risk that a fixed-income investor will be unable to reinvest income proceeds from a security holding at the same rate of return currently generated by that holding.

SEC RULE 15(C)3-1 [Uniform Net Capital Rule]: Every broker or dealer must at all times have and maintain net capital no less than the greater of the highest minimum requirement applicable to its ratio requirement under paragraph (a)(1) of this section, or to any of its activities under paragraph (a)(2) of this section, and must otherwise not be “insolvent” as that term is defined in paragraph (c)(16) of this section.

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STRUCTURED NOTES: Notes issued by Government Sponsored Enterprises (FHLB, FNMA, SLMA, etc.) and Corporations, which have imbedded options (e.g., call features, step-up coupons, floating rate coupons, derivative-based returns) into their debt structure. Their market performance is impacted by the fluctuation of interest rates, the volatility of the imbedded options and shifts in the shape of the yield curve.

TIME DEPOSITS: These instruments are issued by depository institutions against funds deposited for a specified length of time. For the purpose of this report, time deposits (which would include instruments such as deposit notes) are distinct from CDs. The primary difference between the two is the method of interest calculation. Interest payments on time deposits are calculated in a manner similar to that of corporate bonds whereas interest payments on CDs are calculated similarly to money market instruments.

TOTAL RETURN: All money earned on a bond or bond fund from annual interest and market gain or loss, if any, including the deduction of sales charges and/or commissions.

WHEN ISSUED (WI): A conditional transaction in which an authorized new security has not been issued. All “when issued” transactions are settled when the actual security is issued.

YIELD CURVE: A graphic representation that depicts the relationship at a given point in time between yields and maturity for bonds that are identical in every way except maturity. A normal yield curve may be alternatively referred to as a positive yield curve.

YIELD TO CALL (YTC): The rate of return you receive if you hold the bond to its call date and the security is redeemed at its call price. YTC assumes interest payments are reinvested at the yield-to-call date.

YIELD TO MATURITY (YTM): The overall interest rate earned by an investor who buys a bond at the market price and holds it until maturity. Mathematically, it is the discount rate at which the sum of all future cash flows (from coupons and principal repayment) equals the price of the bond.

YIELD TO WORST (YTW): The lower yield of yield-to-call and yield-to-maturity. Investors of callable bonds should always do the comparison to determine a bond's most conservative potential return.

ZERO-COUPON SECURITIES (STRIPS): Security that is issued at a discount and makes no periodic interest payments. The rate of return consists of a gradual accretion of the principal of the security and is payable at par upon maturity. California state law does not allow local agencies to purchase these securities because of the greater interest rate risk and price volatility associated with them.

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CITY OF SANTA ANA

FINANCE & MANAGEMENT SERVICES AGENCY

BROKER-DEALER QUESTIONNAIRE AND CERTIFICATION

1. Name of Firm:

2. Address: (Local)
(Headquarters)

3. Telephone No. (Toll Free)
(Direct #)

4. Primary Representative Manager / Partner-in-Charge
Name Name
Title Title
Telephone No. Telephone No.

Fax No. Fax No.

Email Email
No. of Years in Institutional Sales: No. of Years in Institutional Sales:

SEC Licenses: SEC Licenses:

5. Are you a Primary Dealer in U.S. Government Securities? ............................................( ) Yes ( ) No

6. Are you a Regional Dealer in U.S. Government Securities? ..........................................( ) Yes ( ) No

7. Are you a Broker - i.e., You DO NOT own positions of securities?.................................( ) Yes ( ) No

8. Are you NASD certified and licensed to sell to California municipalities? ......................( ) Yes ( ) No

9. What is the net capitalization of your firm?

10. What is the date of your firm’s fiscal year end?

11. Is your firm owned by a holding company? If so, what is the name and net capitalization of the holding firm?

12. Please provide your normal custody and delivery process:

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13. Which of the following securities are offered regularly by your trading desk? [ ] US Treasuries (Bills, CMB, Notes) [ ] Federal Agencies (Discount Notes, Bonds) [ ] Commercial Paper [ ] Bankers Acceptances [ ] Negotiable Cert of Deposit [ ] Medium Term Corporate Notes [ ] Repurchase Agreements [ ] Money Market Funds [ ] Asset Backed Securities/Mortgages [ ] Reverse Repurchase Agreements

14. Which of the above securities does your firm specialize in marketing?

15. Please identify your most directly comparable City/Local Agency clients in our geographical area:

Entity Contact Person Title Phone No. Client Since

16. What reports, transactions, confirmations and paper trail do your local agency clients receive? (Please include samples.)

17. Please include samples of research reports, market information, or publications that your firm regularly provides to local agency clients.

18. What precautions are taken by your firm to protect the interest of the public when dealing with government agencies as investors?
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19. Have you or your firm been censored or punished by a regulatory State or Federal Agency for improper or fraudulent activities, related to the sale of securities? ( ) Yes ( ) No

20. If answer to question # 19 is YES, please explain charge(s), date(s), action(s) taken:

21. Attach certification documentation of your capital adequacy and financial solvency. This needs to be an audited financial statement by an independent, recognized accounting firm. The audited financial statement must be provided annually to the City within 120 days of your firm’s fiscal year-end.

22. Attach a complete schedule of your applicable fees and charges.

23. Does your firm offer investment training to your local agency clients? ( ) Yes ( ) No

CERTIFICATION
I hereby certify that I have personally read the City of Santa Ana’s Investment Policy and the California Government Codes pertaining to investments and deposits of the City of Santa Ana, and have implemented reasonable procedures and a system of controls designed to preclude imprudent investment activities arising out of transactions conducted between our firm and the City of Santa Ana. I understand, however, that our firm is not obligated to monitor the percentage limits on the investments as described in the City of Santa Ana’s Investment Policy. All sales personnel will be routinely informed of the City of Santa Ana’s investment objectives, horizon, outlook, strategies and risk constraints whenever we are so advised. We pledge to exercise due diligence in informing the City of Santa Ana’s Investment Officers of all foreseeable risks associated with financial transactions conducted with our firm. I attest to the accuracy of our responses to your questionnaire.

NOTE: Completion of this questionnaire is only part of the City of Santa Ana’s certification process and DOES NOT guarantee that the applicant will be approved to do business with the City of Santa Ana.

SIGNED: DATE:

COUNTERSIGNED: DATE:
(Company president or person in charge of government
securities operations)
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Finance and Management Services
www.santa-ana.org/finance
Item # 45
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
June 6, 2023
TOPIC: Designate Authorized Agents on California Office of Emergency Services Form 130

AGENDA TITLE
Designate Authorized Agents on California Office of Emergency Services (Cal OES) Form 130 Related to Federal Emergency Management Agency Reimbursement Request for COVID-19 Expenditures

RECOMMENDED ACTION
Adopt a resolution designating the City Manager, Executive Director of Finance, and Assistant Director of Finance as authorized agents to execute for and on behalf of the City of Santa Ana (the City) with the purpose of obtaining federal financial assistance.

DISCUSSION
In November 2022, the Finance and Management Services Agency submitted a project application requesting reimbursement for eligible COVID-19 expenditures that the City had incurred in an effort to combat the virus. This request was submitted to the Federal Emergency Management Agency (FEMA). However, Cal OES is handling and processing project applications submitted by all California-based applicants. In relation to the reimbursement request, Cal EOS is requesting that the City designate authorized agents to execute for and on behalf of the City of Santa Ana for the purpose of obtaining federal financial assistance. Furthermore, Cal OES requires the City to follow their resolution format by using Cal OES Form 130. The resolution, once approved, will last for three years and designates the City Manager, Executive Director of Finance, and Assistant Director of Finance as authorized agents for the City.

FISCAL IMPACT
There is no fiscal impact associated with this action.

EXHIBIT(S)

1. Designation of Applicant’s Agent Resolution for Non-State Agencies Submitted By: Kathryn Downs, FMSA Executive Director
Approved By: Kristine Ridge, City Manager
City Council 45 – 1 6/6/2023

DESIGNATION OF APPLICANT'S AGENT RESOLUTION FOR NON-STATE AGENCIES

BE IT RESOLVED BY THE OF THE
(Governing Body) (Name of Applicant)

THAT , OR
(Title of Authorized Agent)
, OR
(Title of Authorized Agent)
(Title of Authorized Agent)
is hereby authorized to execute for and on behalf of the , (Name of Applicant)
a public entity established under the laws of the State of California, this application and to file it with the California Governor’s Office of Emergency Services for the purpose of obtaining federal financial assistance for any existing or future grant program, including, but not limited to any of the following:
- Federally declared Disaster (DR), Fire Mitigation Assistance Grant (FMAG), California State Only Disaster (CDAA), Immediate Services Program (ISP), Hazard Mitigation Grant Program (HMGP), Building Resilient Infrastructure and Communities (BRIC), Legislative Pre-Disaster Mitigation Program (LPDM), under - Public Law 93-288 as amended by the Robert T. Stafford Disaster Relief and Emergency Assistance Act of 1988, and/or state financial assistance under the California Disaster Assistance Act.
- Flood Mitigation Assistance Program (FMA), under Section 1366 of the National Flood Insurance Act of 1968.
- National Earthquake Hazards Reduction Program (NEHRP) 42 U.S. Code 7704 (b) ((2) (A) (ix) and 42 U.S. Code 7704 (b) (2) (B) National Earthquake Hazards Reduction Program, and also The Consolidated Appropriations Act, 2018, Div. F, Department of Homeland Security Appropriations Act, 2018, Pub. L. No. 115-141 - California Early Earthquake Warning (CEEW) under CA Gov Code – Gov, Title 2, Div. 1, Chapter 7, Article 5, Sections 8587.8, 8587.11, 8587.12 That the , a public entity established under the
(Name of Applicant)
laws of the State of California, hereby authorizes its agent(s) to provide to the Governor’s Office of Emergency Services for all matters pertaining to such state disaster assistance the assurances and agreements required.

STATE OF CALIFORNIA

CALIFORNIA GOVERNOR'S OFFICE OF EMERGENCY SERVICES

DESIGNATION OF APPLICANT'S AGENT RESOLUTION

NON-STATE AGENCIES
OES-FPD-130 (Rev. 10-2022)

RECOVERY DIRECTORATE

FINANCIAL PROCESSING DIVISION
Cal OES ID No: _____________
Rev. 10-2022 Page 1 of 4 OES-FPD-130
EXHIBIT 1
059-69000-00 City Council The City Manager Executive Director of Finance Assistant Director of Finance City of Santa Ana City of Santa Ana City of Santa Ana City Council 45 – 2 6/6/2023
Please check the appropriate box below
This is a universal resolution and is effective for all open and future disasters/grants declared up to three (3) years following the date of approval.

This is a disaster/grant specific resolution and is effective for only disaster/grant number(s):

Passed and approved this __day of , 20
(Name and Title of Governing Body Representative)
(Name and Title of Governing Body Representative)
(Name and Title of Governing Body Representative)

CERTIFICATION
I, , duly appointed and of
(Name) (Title)
, do hereby certify that the above is a true and
(Name of Applicant)
correct copy of a resolution passed and approved by the (Governing Body)
of the on the day of , 20 .
(Name of Applicant)
(Signature) (Title)

STATE OF CALIFORNIA

CALIFORNIA GOVERNOR'S OFFICE OF EMERGENCY SERVICES

DESIGNATION OF APPLICANT'S AGENT RESOLUTION

NON-STATE AGENCIES
OES-FPD-130 (Rev. 10-2022)

RECOVERY DIRECTORATE

FINANCIAL PROCESSING DIVISION
Rev. 10-2022 Page 2 of 4 OES-FPD-130
Approved as to form:________________________________________ Laura Rossini, Chief Assistant City Attorney
City Council City of Santa Ana City of Santa Ana ✔
Clerk of the Council Clerk of the Council 23 23 6 June Jennifer Hall 6 June City Council 45 – 3 6/6/2023
Public Works Agency
www.santa-ana.org/public-works
Item # 46
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
June 6, 2023
TOPIC: Resolution Supporting Cathy Green for Office of ACWA President

AGENDA TITLE
Resolution to Support Orange County Water District President Cathy Green as a Candidate for the Office of Association of California Water Agencies President

RECOMMENDED ACTION
Adopt a resolution to endorse Orange County Water District President Cathy Green as a candidate for the office of President for the Association of California Water Agencies.

DISCUSSION
The Association of California Water Agencies (ACWA) has announced that a Nominating Committee has been formed to develop a slate for the ACWA election of its statewide lead officer positions of President and Vice President. The individual who fills the ACWA President position needs to possess a working knowledge of water industry issues and concerns, connections with water professionals throughout the state, strength of character and leadership capabilities, and experience in matters related to the performance of the duties of the office. This person must be able to provide the dedication of time and energy to effectively serve in this capacity.

Director Green has extensive relevant experience, which can be found below:
• Director Green has served on the ACWA Board since 2016, on the ACWA Board Executive Committee since 2020, and as ACWA Vice President since 2022. • She has served as ACWA Region 10 Chair (2018-19) and ACWA Region 10 Vice Chair (2016-17, 2020-2021).
• She serves on the ACWA Water Quality Committee (2012-current) and ACWA Energy Committee (2019-current), and has served on the ACWA State Legislative Committee (2012-15).
• She has served in a leadership role at Orange County Water District. She was elected to the OCWD Board of Directors in November 2010 and was re-elected in 2012, 2016, and 2020. She was selected by the OCWD Board of Directors to serve as its 2015, 2016, and 2023 President. She served as First Vice President in 2013, 2014, and from 2020 to 2022.
• She currently serves as Vice Chair of the National Water Research Institute, a 501(c)(3) non-profit organization that collaborates with water utilities, regulators, City Council 46 – 1 6/6/2023
Support Cathy Green for Office of ACWA President
June 6, 2023

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Santa Ana City CouncilJune 6, 2023

Santa Ana City Council
June 6, 2023