Agenda packet — City Council and Authorities Concurrent, January 31, 2023 (part 1 of 6)

City of Santa Clara
Joint Meeting Agenda of the
Council and Authorities Concurrent &
Santa Clara Stadium Authority
Hybrid Meeting
City Hall Council Chambers/Virtual
1500 Warburton Avenue Santa
Clara, CA 95050
Tuesday, January 31, 2023 5:00 PM
The City of Santa Clara will be conducting City Council meetings in a hybrid manner (in-person and continues to have methods for the public to participate remotely). Pursuant to Government Code Section 54953(e) and City of Santa Clara Resolution No. 22-9178 Councilmembers may teleconference from remote locations and the City continues to provide methods for the public to participate remotely:
• Via Zoom:
o https://santaclaraca.zoom.us/j/99706759306
Meeting ID: 997-0675-9306 or
o Phone: 1(669) 900-6833
• Via the City’s eComment
As always, the public may view the meetings on SantaClaraCA.gov, Santa Clara City Television (Comcast cable channel 15 or AT&T U-verse channel 99), or the livestream on the City’s YouTube channel or Facebook page.

Closed Session - 5:00 PM | Regular Meeting - 7:00 PM
5:00 PM CLOSED SESSION
Call to Order in the Council Chambers
Roll Call

1.A Public Employment Appointment (Government Code §§ 54957, subd. (b)(1) and 54954.5, subd. (e))
Title: City Manager
23-73
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Concurrent & Stadium Authority Meeting
Meeting Agenda January 31, 2023

1.B Conference with Real Property Negotiators (CC)
Pursuant to Gov. Code § 54956.8
Property: Please see below listing for APNs and addresses City/Authority Negotiator: Rajeev Batra, City Manager/Executive Director (or designee)
Negotiating Parties: Please see below listing for names for negotiating party(ies)
Under Negotiation: Purchase/Sale/Exchange/Lease of Real Property (provisions, price and terms of payment)
23-91

1.C Conference with Labor Negotiators (CC)
Pursuant to Gov. Code § 54957.6
City representative: City Manager’s designee
Employee Organization(s):

Unit #1-Santa Clara Firefighters Association, IAFF, Local 1171 Unit #2-Santa Clara Police Officer’s Association
Unit #3-IBEW Local 1245 (International Brotherhood of
Electrical Workers)
Unit #4-City of Santa Clara Professional Engineers
Units #5, 7 & 8-City of Santa Clara Employees Association Unit #6-AFSCME Local 101 (American Federation of State, County and Municipal Employees)
Unit #9-Miscellaneous Unclassified Management Employees Unit #9A-Unclassified Police Management Employees
Unit #9B-Unclassified Fire Management Employees
Unit #10-PSNSEA (Public Safety Non-Sworn Employees
Association)
23-85
Public Comment
The public may provide comments regarding the Closed Session item(s) just prior to the Council beginning the Closed Session. Closed Sessions are not open to the public.

Convene to Closed Session (Council Conference Room)
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Joint Council and Authorities
Concurrent & Stadium Authority Meeting
Meeting Agenda January 31, 2023
7:00 PM JOINT COUNCIL/STADIUM AUTHORITY MEETING
*Open Session will begin at 7:00 PM or shortly thereafter Call to Order
Call to Order in the Council Chambers (Open to the Public) Pledge of Allegiance and Statement of Values

REPORTS OF ACTION TAKEN IN CLOSED SESSION MATTERS

CONTINUANCES/EXCEPTIONS/RECONSIDERATIONS

SPECIAL ORDER OF BUSINESS

2.A 23-1446 Proclaim February 2023 as Black History Month

2.B Recognition of the Bill Wilson Center’s 50 Years of Service and Recognition of Chief Executive Officer Sparky Harlan
23-40

2.C Verbal Report from the Chief Emergency Services Officer regarding COVID-19 Pandemic
23-47

2.D Verbal Report Update from City Manager Regarding the Local Drought Emergency
23-48

CONSENT CALENDAR
[Items listed on the CONSENT CALENDAR are considered routine and will be adopted by one motion. There will be no separate discussion of the items on the CONSENT CALENDAR unless discussion is requested by a member of the Council, staff, or public. If so requested, that item will be removed from the CONSENT CALENDAR and considered under CONSENT ITEMS PULLED FOR DISCUSSION.]

3.A Action on October 3, 2022 Special City Council Meeting and October 4, 2022 Council and Authorities Concurrent Meeting Minutes
23-46
Approve the Meeting Minutes of October 3, 2022
Special City Council Meeting and October 4, 2022
Council and Authorities Concurrent Meeting.

Recommendation:

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Meeting Agenda January 31, 2023

3.B 23-05 Board, Commissions and Committee Minutes
Note and file the Minutes of:

3.C Action on Monthly Financial Status and Investment Reports for November 2022 and Approve the Related Budget Amendments 23-54
Note and file the Monthly Financial Status and Investment Reports for November 2022 as presented and Approve the
Related Budget Amendments (five affirmative Council
votes required to appropriate additional revenue or for the use of unused balances).

Recommendation:

3.D Approval of the Annual Investment Policy Statement for the City of Santa Clara, its Agencies and Corporations
23-1447
Approve the Investment Policy for the City of Santa
Clara, its agencies and corporations.

Recommendation:

3.E Action on the Federal and State Income Tax Exempt Reporting for Fiscal Year 2021/2022
23-1562
Authorize the Executive Director, or designee, to file
the 2021 Internal Revenue Service Form 990 (Return
of Organization Exempt from Income Tax) and the
State of California Form 199 (Exempt Organization
Annual Information Return) on behalf of the City of
Santa Clara Public Facilities Financing Corporation.

Recommendation:

3.F Action on the Adoption of a Resolution Accepting the AB1600 Report on Development Impact Fees for Fiscal Year Ended June 30, 2022
23-1560
Adopt a Resolution accepting the AB1600 Report on
Development Impact Fees for fiscal year ending June
30, 2022 and making findings regarding the
continuing need for the unexpended balances of
impact fees as of June 22, 2022.

Recommendation:

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Concurrent & Stadium Authority Meeting
Meeting Agenda January 31, 2023

3.G Action on Adoption of a Resolution Declaring Weeds a Public Nuisance and Setting February 21, 2023 for Public Hearing and Adopt a Class 8 CEQA Categorical Exemption
23-1502

1. Adopt a Resolution ordering the abatement of
nuisance consisting of growing weeds in the City;

2. Set February 21, 2023 as the date for the required
Public Hearing; and

3. Adopt a Class 8 Categorical Exemption under
CEQA Guidelines Section 15308.

Recommendation:

3.H Action on a Resolution Authorizing the Use of City Electric Forces at Various Locations
23-1537
Determine the proposed actions are exempt from
CEQA pursuant to Sections 15302(c) and 15303 of
Title 14 of the California Code of Regulations and
adopt a Resolution authorizing the use of City Electric Forces for work detailed in this report to Council at
2201 Laurelwood Drive, 2905 Stender Way, Corner of
Shulman Avenue & Memorex Drive, 2201 Laurelwood
Drive, 2590 Walsh Avenue, 3500 El Camino Real,
795 Comstock Street, 3510 Bassett Street, and 159
Brookside Avenue.

Recommendation:

3.I Action on the Approval of Officer Wellness and Mental Health Grant Program Funding from the Board of State and Community Corrections and Approve Related Budget Amendment
23-39

1. Approve Officer Wellness and Mental Health
Grant Program Funding from the Board of
State and Community Corrections; and

2. Approve the FY 2022/23 budget amendment in
the Police Operating Grant Trust Fund to
recognize grant revenue in the amount of
$98,282 and establish a Board of State and
Community Corrections appropriation in the
amount of $98,282 (five affirmative Council
votes required to appropriate additional
revenue).

Recommendation:

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Concurrent & Stadium Authority Meeting
Meeting Agenda January 31, 2023

3.J Action on Appointments to City Committees and Outside Agency Committees for the 2023 Calendar Year
23-52
Approve the appointments to the 2023 City
Committees and Outside Agency Committees.

Recommendation:

3.K Authorize the City Manager to Accept Partial Donations from the Magical Bridge Foundation and Make Partial Payments to the Magical Bridge Foundation for the Central Park Magical Bridge Playground Project
23-65
Authorize the City Manager to accept partial
donations from the Magical Bridge Foundation and
make partial payments to the Magical Bridge
Foundation for the Central Park Magical Bridge
Playground Project.

Recommendation:

SANTA CLARA STADIUM AUTHORITY CONSENT CALENDAR

4.A Action on Stadium Authority Bills and Claims for the Month of November 2022
23-1514
Approve the list of Stadium Authority Bills and Claims
for November 2022.

Recommendation:

4.B Informational Report on Stadium Authority and Stadium Manager Meetings and Corresponding Minutes for the Period of July 1 to September 30, 2022
23-1367
Note and file the quarterly report on Stadium Authority and Stadium Manager staff meetings and
corresponding minutes for the period of July 1 to
September 30, 2022.

Recommendation:

4.C Action on Request Submitted by the Stadium Manager to Award Agreement to Fluoresco Services, LLC to Repaint and Install Signage Elements, and Procure Event-Related Signage Products for Levi’s Stadium (Stadium Event Signage CapEx Project)

4.C.1 Request from the Stadium Manager to Award Agreement to Fluoresco Services, LLC to Repaint and Install Signage
Elements, and Procure Event-Related Signage Products for Levi’s Stadium (Stadium Event Signage CapEx Project)
23-113
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Joint Council and Authorities
Concurrent & Stadium Authority Meeting
Meeting Agenda January 31, 2023

4.C.2 Report from the Stadium Authority for Action Regarding Stadium Manager’s Request to Award Agreement to Fluoresco Services, LLC to Repaint and Install Signage Elements, and Procure Event-Related Signage Products for Levi’s Stadium (Stadium Event Signage CapEx Project)
23-125

1. Approve the Stadium Manager’s request to
award a one-time agreement to Fluoresco
Services, LLC to repaint select existing
signage elements, install newly fabricated
signage elements, and procure specified
event-related signage products for Levi’s
Stadium (Stadium Event Signage CapEx
Project) in the amount of $120,695;

2. Authorize the Executive Director or his
designee to approve the Stadium Manager’s
execution of any and all documents associated
with, and necessary for the award, completion,
and acceptance of the project; and

3. Authorize the Executive Director or his
designee to approve the Stadium Manager’s
execution of change orders up to $4,028 of the
contract cost, for a total not to exceed
construction agreement amount of $124,723.

Recommendation:

4.D Action on Request Submitted by the Stadium Manager to Award Purchase Orders to Valley Transportation Authority (VTA) for Annual Construction Access Permit and Related Training and Benjamin Litho, Inc. to Print Guest Services Cards; and Authorize Purchase from IPROVEIT for Background Checks Related to VTA Permit

4.D.1 Request from the Stadium Manager to Award Purchase Orders to Valley Transportation Authority (VTA) for Annual Construction Access Permit and Related Training and Benjamin Litho, Inc. to Print Guest Services Cards; and Authorize Purchase from IPROVEIT for Background Checks Related to VTA Permit
23-132
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Joint Council and Authorities
Concurrent & Stadium Authority Meeting
Meeting Agenda January 31, 2023

4.D.2 Report from the Stadium Authority for Action on Stadium Manager’s Request to Award Purchase Orders to Valley
Transportation Authority (VTA) for Annual Construction Access Permit and Related Training and Benjamin Litho, Inc. to Print Guest Services Cards; and Authorize Purchase from IPROVEIT for Background Checks Related to VTA Permit
23-133

1. Approve the Stadium Manager’s request to
award a purchase order to VTA in the amount
of $3,900 for the annual Construction Access
Permit and related training for Stadium
Manager staff;

2. Approve payment via credit card to IPROVEIT
in an amount not to exceed $500 for the
background screenings of Stadium Manger
staff as required by the VTA Construction
Access Permit and shipping of badges; and

3. Approve the Stadium Manager’s request to
award a purchase order to Benjamin Litho, Inc.
in the amount of $153 to print cards for Guest
Services.

Recommendation:

PUBLIC PRESENTATIONS
[This item is reserved for persons to address the Council or authorities on any matter not on the agenda that is within the subject matter jurisdiction of the City or Authorities. The law does not permit action on, or extended discussion of, any item not on the agenda except under special circumstances. The governing body, or staff, may briefly respond to statements made or questions posed, and appropriate body may request staff to report back at a subsequent meeting. Although not required, please submit to the City Clerk your name and subject matter on the speaker card available in the Council Chambers.]

CONSENT ITEMS PULLED FOR DISCUSSION

PUBLIC HEARING/GENERAL BUSINESS

5. Public Hearing: Action on Amendment to the City of Santa Clara General Plan by Adopting an Updated Housing Element for the 2023-2031 Housing Element Cycle
23-276
Alternatives: 1 & 2

1. Adopt a Resolution to Adopt the Addendum to the
2010-2035 General Plan Environmental Impact
Report.

2. Adopt a Resolution to Amend the General Plan by
Adopting an Updated Housing Element for the
2023-2031 Cycle.

Recommendation:

City of Santa Clara Page 8 of 10 Printed on 1/26/2023
Joint Council and Authorities
Concurrent & Stadium Authority Meeting
Meeting Agenda January 31, 2023

6. Public Hearing: Action on Appeal of Planning Commission Approval of a Variance to Maintain a 68 Square Foot Accessory Building in the Rear Yard of a Single-Family Residence, at a Site Located at 2121 Sheraton Drive, Santa Clara; and Action on a Class 1(e) CEQA Categorical Exemption
23-1533
Alternative 1: Sustain the appeal and overrule the
Planning Commission’s approval of a Variance to
maintain a 68 square foot accessory building in the
rear yard of a single-family residence, at a site located at 2121 Sheraton Drive, Santa Clara
Recommendation:

7. Action on a Written Petition to Waive the Fees for City Services Related to Three (3) Baseball Fundraising Tournaments at Washington Park Ballfield
23-89
In consideration of the City’s adopted Cost Recovery
Policy and eligibility for a Community Grant Award, it
is recommended that the Petitioner be directed to
submit a grant request for eligible expenses to City’s
Community Grant Award Program in an amount not to
exceed $10,000 to offset tournament expenses.

Recommendation:

8. Action to Adopt a Resolution Approving and Adopting the Updated Unclassified Salary Plan for the position of City Attorney
23-64
Adopt a Resolution to approve the revised
unclassified salary plan for the position of City
Attorney to satisfy the requirements of California Code of Regulations Section 570.5 effective March 1, 2023
Recommendation:

REPORTS OF MEMBERS AND SPECIAL COMMITTEES

CITY MANAGER/EXECUTIVE DIRECTOR REPORT
23-905 Update on City Council and Stadium Authority Staff Referrals 23-49 Tentative Meeting Agenda Calendar (TMAC)

ADJOURNMENT
The next regular scheduled meeting is on Tuesday, February 7, 2023 in the City Hall Council Chambers.

City of Santa Clara Page 9 of 10 Printed on 1/26/2023
Council and Authorities Concurrent
Meeting
Meeting Agenda January 31, 2023
The time limit within which to commence any lawsuit or legal challenge to any quasi-adjudicative decision made by the City is governed by Section 1094.6 of the Code of Civil Procedure, unless a shorter limitation period is specified by any other provision. Under Section 1094.6, any lawsuit or legal challenge to any quasi-adjudicative decision made by the City must be filed no later than the 90th day following the date on which such decision becomes final. Any lawsuit or legal challenge, which is not filed within that 90-day period, will be barred. If a person wishes to challenge the nature of the above section in court, they may be limited to raising only those issues they or someone else raised at the meeting described in this notice, or in written correspondence delivered to the City of Santa Clara, at or prior to the meeting. In addition, judicial challenge may be limited or barred where the interested party has not sought and exhausted all available administrative remedies.

AB23 ANNOUNCEMENT: Members of the Santa Clara Stadium Authority, Sports and Open Space Authority and Housing Authority are entitled to receive $30 for each attended meeting.

Note: The City Council and its associated Authorities meet as separate agencies but in a concurrent manner. Actions taken should be considered actions of only the identified policy body.

LEGEND: City Council (CC); Stadium Authority (SA); Sports and Open Space Authority (SOSA); Housing Authority (HA); Successor Agency to the City of Santa Clara Redevelopment Agency (SARDA); Bayshore North Project Enhancement Authority (BNPEA); Public Facilities Financing Corporation (PFFC) Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email [email protected] <mailto:[email protected]> or at the public information desk at any City of Santa Clara public library.

If a member of the public submits a speaker card for any agenda items, their name will appear in the Minutes. If no speaker card is submitted, the Minutes will reflect "Public Speaker." In accordance with the requirements of Title II of the Americans with Disabilities Act of 1990 ("ADA"), the City of Santa Clara will not discriminate against qualified individuals with disabilities on the basis of disability in its services, programs, or activities, and will ensure that all existing facilities will be made accessible to the maximum extent feasible. The City of Santa Clara will generally, upon request, provide appropriate aids and services leading to effective communication for qualified persons with disabilities including those with speech, hearing, or vision impairments so they can participate equally in the City’s programs, services, and activities. The City of Santa Clara will make all reasonable modifications to policies and programs to ensure that people with disabilities have an equal opportunity to enjoy all of its programs, services, and activities.

Agendas and other written materials distributed during a public meeting that are public record will be made available by the City in an appropriate alternative format. Contact the City Clerk’s Office at 1 408-615-2220 with your request for an alternative format copy of the agenda or other written materials.

Individuals who require an auxiliary aid or service for effective communication, or any other disability-related modification of policies or procedures, or other accommodation, in order to participate in a program, service, or activity of the City of Santa Clara, should contact the City’s ADA Coordinator at 408-615-3000 as soon as possible but no later than 48 hours before the scheduled event.

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MEETING DISCLOSURES
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23-73 Agenda Date: 1/31/2023

REPORT TO COUNCIL

SUBJECT
Public Employment Appointment (Government Code §§ 54957, subd. (b)(1) and 54954.5, subd. (e)) Title: City Manager
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23-91 Agenda Date: 1/31/2023

SUBJECT
Conference with Real Property Negotiators (CC)
Pursuant to Gov. Code § 54956.8
Property: Please see below listing for APNs and addresses City/Authority Negotiator: Rajeev Batra, City Manager/Executive Director (or designee) Negotiating Parties: Please see below listing for names for negotiating party(ies) Under Negotiation: Purchase/Sale/Exchange/Lease of Real Property (provisions, price and terms of payment)
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23-85 Agenda Date: 1/31/2023

SUBJECT
Conference with Labor Negotiators (CC)
Pursuant to Gov. Code § 54957.6
City representative: City Manager’s designee
Employee Organization(s):

Unit #1-Santa Clara Firefighters Association, IAFF, Local 1171 Unit #2-Santa Clara Police Officer’s Association
Unit #3-IBEW Local 1245 (International Brotherhood of Electrical Workers) Unit #4-City of Santa Clara Professional Engineers
Units #5, 7 & 8-City of Santa Clara Employees Association Unit #6-AFSCME Local 101 (American Federation of State, County and Municipal Employees) Unit #9-Miscellaneous Unclassified Management Employees Unit #9A-Unclassified Police Management Employees
Unit #9B-Unclassified Fire Management Employees
Unit #10-PSNSEA (Public Safety Non-Sworn Employees Association) City of Santa Clara Page 1 of 1 Printed on 1/26/2023
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23-1446 Agenda Date: 1/31/2023

REPORT TO COUNCIL

SUBJECT
Proclaim February 2023 as Black History Month

BACKGROUND
Black History Month is an annual celebration of achievements by African Americans and a time for recognizing their central role in U.S. history. Also known as African American History Month, the event grew out of “Negro History Week,” the brainchild of noted historian Carter G. Woodson and other prominent African Americans. Since 1976, every U.S. president has officially designated the month of February as Black History Month.

The Black History Month 2023 theme, “Black Resistance,” explores how African Americans have resisted historic and ongoing oppression, in all forms including racial terrorism. The City of Santa Clara celebrates Black History Month to raise awareness of Black culture, honor prominent Black individuals who have the course of American history.

DISCUSSION
On January 31, 2023, the City Council will proclaim February 2023 as Black History Month in Santa Clara.

ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA guidelines section 15378(a) as it has no potential for resulting in either a direct physical change in the environment.

FISCAL IMPACT
There is no fiscal impact to the City other than administrative staff time.

COORDINATION
This report has been coordinated with the Mayor and Council Offices.

PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email [email protected] <mailto:[email protected]> or at the public information desk at any City of Santa Clara public library.

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23-1446 Agenda Date: 1/31/2023
Reviewed by: Maria Le, Assistant to the City Manager, Mayor and Council Offices Approved by: Rajeev Batra, City Manager
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23-40 Agenda Date: 1/31/2023

REPORT TO COUNCIL

SUBJECT
Recognition of the Bill Wilson Center’s 50 Years of Service and Recognition of Chief Executive Officer Sparky Harlan

BACKGROUND
In 1973, former Santa Clara City Councilmember and Mayor, Bill Wilson, Jr. collaborated with Santa Clara University to develop a counseling center to provide counseling for students in local secondary schools with a family therapy program. Bill Wilson helped launch the Webster Center years ago. In 1977, Bill died at the age of 41. The Board of Directors made the unanimous decision to change the name of Webster Center to Bill Wilson Center in memory of the founder.

The Bill Wilson Center continues its commitment to serve homeless youth and families through counseling, housing, education, and advocacy. The Bill Wilson Center offers immediate shelter and supportive services for youth and young adults ages 12-24. Working with the Santa Clara Police Department and Santa Clara Unified School District, the Bill Wilson Center receives referrals to provide a safe place for underage runaway and homeless youth at the Safety Net Shelter in Santa Clara, the only youth shelter available in Santa Clara County. In January 2023, the Bill Wilson Center celebrates 50 years of service. More than 100,000 youth have been supported through Bill Wilson Center's counseling and housing programs for the last 50 years.

After 40 years as Chief Executive Officer (CEO) of the Bill Wilson Center, Sparky Harlan will retire in March 2023. Sparky Harlan became CEO of the Bill Wilson Center in 1983. Sparky’s expertise includes working with runaway and homeless youth, foster youth, and youth involved with the juvenile justice system. Sparky has recruited nonprofit, community and corporate leaders to work together on Countywide initiatives focused on ending youth and family homelessness. As a nationally recognized leader in youth services, Sparky received the Executive Leadership Award of Excellence from the National Network for Youth, the Outstanding Agency Administrator Award from National Safe Place, and was recognized among the Champions of Change by The White House by President Barack Obama.

DISCUSSION
On January 31, 2023, the City Council will recognize the Bill Wilson Center for 50 years of service and their continued commitment to help achieve the goal to end youth and family homelessness in our community. In addition, the Council will commend Sparky Harlan for 40 years of service at the Bill Wilson Center.

ENVIRONMENTAL REVIEW
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23-40 Agenda Date: 1/31/2023
environmental review under the California Environmental Quality Act (“CEQA”) is required.

FISCAL IMPACT
There is no fiscal impact to the City other than staff time.

Reviewed by: Maria Le, Assistant to City Manager, City Manager’s Office Approved by: Rajeev Batra, City Manager, City Manager’s Office City of Santa Clara Page 2 of 2 Printed on 1/26/2023
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23-47 Agenda Date: 1/31/2023

REPORT TO COUNCIL

SUBJECT
Verbal Report from the Chief Emergency Services Officer regarding COVID-19 Pandemic

COUNCIL PILLAR
Enhance Community Engagement and Transparency
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23-48 Agenda Date: 1/31/2023

REPORT TO COUNCIL

SUBJECT
Verbal Report Update from City Manager Regarding the Local Drought Emergency

COUNCIL PILLAR
Enhance Community Engagement and Transparency
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23-46 Agenda Date: 1/31/2023

REPORT TO COUNCIL

SUBJECT
Action on October 3, 2022 Special City Council Meeting and October 4, 2022 Council and Authorities Concurrent Meeting Minutes

RECOMMENDATION
Promote Community Engagement and Transparency

RECOMMENDATION
Approve the Meeting Minutes of October 3, 2022 Special City Council Meeting and October 4, 2022 Council and Authorities Concurrent Meeting.

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City of Santa Clara
Meeting Minutes
Special City Council Meeting
Draft
5:30 PM Hybrid Meeting
City Hall Council Chambers/Virtual
1500 Warburton Avenue
Santa Clara, CA 95050
10/03/2022
The City of Santa Clara will be conducting City Council meetings in a hybrid manner (in-person and continues to have methods for the public to participate remotely). Pursuant to Government Code Section 54953(e) and City of Santa Clara Resolution No. 22-9142, Councilmembers may teleconference from remote locations and the City continues to provide methods for the public to participate remotely:
• Via Zoom:
o https://santaclaraca.zoom.us/j/99706759306
Meeting ID: 997-0675-9306 or
o Phone: 1(669) 900-6833
• Via the City’s eComment (now available during the meeting) • Via email to [email protected]
As always, the public may view the meetings on SantaClaraCA.gov, Santa Clara City Television (Comcast cable channel 15 or AT&T U-verse channel 99), or the livestream on the City’s YouTube channel or Facebook page.

NOTICE IS HEREBY GIVEN that, pursuant to the provisions of California Government Code §54956 (“The Brown Act”) and Section 708 of the Santa Clara City Charter, the Mayor calls for a Special Meeting of the City of Santa Clara City Council, to commence and convene on October 3, 2022, at 5:30 p.m. for a Special Meeting in the City Hall Council Chambers located in the East Wing of City Hall at 1500 Warburton Avenue, Santa Clara, California and by teleconference, to consider the following matter(s) and to potentially take action with respect to them.
5:30 PM SPECIAL COUNCIL MEETING
Call to Order
Mayor Gillmor called the Special meeting to order at 5:32 PM.

City of Santa Clara Page 1 Printed on 12/29/2022
Special City Council Meeting Meeting Minutes 10/03/2022 Pledge of Allegiance and Statement of Values
Council recited the Pledge of Allegiance.

Councilmember Chahal recited the Statement of Values.

Roll Call
Councilmember Kathy Watanabe, Councilmember Raj Chahal, Councilmember Karen Hardy, Councilmember Kevin Park, Vice Mayor Suds Jain, Councilmember Anthony Becker, and Mayor Lisa M.

Gillmor

Present: 7 -
City of Santa Clara Page 2 Printed on 12/29/2022
Special City Council Meeting Meeting Minutes 10/03/2022

1. 22-1245 Interviews and Action on Appointment to fill one Partial Term ending June 30, 2024 to the Bicycle and Pedestrian Advisory Committee Recommendation: 1. Appoint one applicant to serve one partial term ending June 30, 2024 on the Bicycle and Pedestrian Advisory Committee; and

2. Establish an eligibility list which may be used to fill vacancies that may occur during the next six months.

Assistant City Clerk Pimentel provided a verbal report on the interviews and appointment to the Bicycle & Pedestrian Advisory Committee.

Interviews followed with the following applicants:

Pete Diashyn
Ken Kratz
Lik Seng Lim
Robert Mardell
Abhijit Pandey
Prateek Patil
Perry T. Penvenne
Mayor Gillmor called for a recess at 6:00 PM and reconvened the meeting at 6:07 PM.

Interviews continued.

Assistant City Clerk Pimentel provided a verbal report on the voting process.

Public Speaker(s): Diane Harrison
Council casted the following three votes for the applicants:

Councilmember Becker: Perry T. Penvenne, Prateek Patil, Ken Kratz Councilmember Hardy: Pete Diashyn, Robert Mardell, Perry T. Penvenne Vice Mayor Jain: Ken Kratz, Prateek Patil, Robert Mardell
Mayor Gillmor: Perry T. Penvenne, Abhijit Pandey, Robert Mardell Councilmember Chahal: Ken Kratz, Abhijit Pandey, Prateek Patil Councilmember Watanabe: Robert Mardell, Abhijit Pandey, Perry T. Penvenne Councilmember Park: Perry T. Penvenne, Prateek Patil, Ken Kratz City of Santa Clara Page 3 Printed on 12/29/2022
Special City Council Meeting Meeting Minutes 10/03/2022 A motion was made by Councilmember Becker, seconded by
Councilmember Chahal, to appoint Perry T. Penvenne to fill the partial term ending June 30, 2024 on the Bicycle and Pedestrian Advisory Committee and to create a six month eligibility list with Prateek Patil, Ken Kratz, and Robert Mardel.

Aye: Councilmember Watanabe, Councilmember Chahal, Councilmember Hardy, Councilmember Park, Vice Mayor Jain, Councilmember Becker, and Mayor Gillmor
7 -

PUBLIC PRESENTATIONS
None.

ADJOURNMENT
The meeting was adjourned at 7:11 PM.

A motion was made by Councilmember Becker, seconded by
Councilmember Park, to adjourn the meeting.

Aye: Councilmember Watanabe, Councilmember Chahal, Councilmember Hardy, Councilmember Park, Vice Mayor Jain, Councilmember Becker, and Mayor Gillmor
7 -
The next regular scheduled meeting is on Tuesday, October 4, 2022 in the City Hall Council Chambers.

City of Santa Clara Page 4 Printed on 12/29/2022
Special City Council Meeting Meeting Minutes 10/03/2022 The time limit within which to commence any lawsuit or legal challenge to any quasi-adjudicative decision made by the City is governed by Section 1094.6 of the Code of Civil Procedure, unless a shorter limitation period is specified by any other provision. Under Section 1094.6, any lawsuit or legal challenge to any quasi-adjudicative decision made by the City must be filed no later than the 90th day following the date on which such decision becomes final. Any lawsuit or legal challenge, which is not filed within that 90-day period, will be barred. If a person wishes to challenge the nature of the above section in court, they may be limited to raising only those issues they or someone else raised at the meeting described in this notice, or in written correspondence delivered to the City of Santa Clara, at or prior to the meeting.

In addition, judicial challenge may be limited or barred where the interested party has not sought and exhausted all available administrative remedies.

Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email [email protected] <mailto:[email protected]> or at the public information desk at any City of Santa Clara public library.

If a member of the public submits a speaker card for any agenda items, their name will appear in the Minutes. If no speaker card is submitted, the Minutes will reflect "Public Speaker."
In accordance with the requirements of Title II of the Americans with Disabilities Act of 1990 ("ADA"), the City of Santa Clara will not discriminate against qualified individuals with disabilities on the basis of disability in its services, programs, or activities, and will ensure that all existing facilities will be made accessible to the maximum extent feasible. The City of Santa Clara will generally, upon request, provide appropriate aids and services leading to effective communication for qualified persons with disabilities including those with speech, hearing, or vision impairments so they can participate equally in the City’s programs, services, and activities. The City of Santa Clara will make all reasonable modifications to policies and programs to ensure that people with disabilities have an equal opportunity to enjoy all of its programs, services, and activities.

City of Santa Clara Page 5 Printed on 12/29/2022

MEETING DISCLOSURES
City of Santa Clara
Meeting Minutes
Council and Authorities Concurrent Meeting
Draft
6:00 PM Hybrid Meeting
City Hall Council Chambers/Virtual
1500 Warburton Avenue
Santa Clara, CA 95050
10/04/2022
The City of Santa Clara will be conducting City Council meetings in a hybrid manner (in-person and continues to have methods for the public to participate remotely). Pursuant to Government Code Section 54953(e) and City of Santa Clara Resolution No. 22-9142, Councilmembers may teleconference from remote locations and the City continues to provide methods for the public to participate remotely:
• Via Zoom:
o https://santaclaraca.zoom.us/j/99706759306
Meeting ID: 997-0675-9306 or
o Phone: 1(669) 900-6833
• Via the City’s eComment (now available during the meeting) • Via email to [email protected] (Comments received after 2:00 PM on the day of the meeting will be made part of the public record but will not be read out loud during the meeting). This email address will be disabled after the October 4, 2022 meeting. Comments will continue to be accepted through City’s eComment.

As always, the public may view the meetings on SantaClaraCA.gov, Santa Clara City Television (Comcast cable channel 15 or AT&T U-verse channel 99), or the livestream on the City’s YouTube channel or Facebook page.
6:00 PM CLOSED SESSION
Call to Order in the Council Chambers
Mayor Gillmor called the meeting to order at 6:03 PM.

Roll Call
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Councilmember Kathy Watanabe, Councilmember Raj Chahal, Councilmember Karen Hardy, Councilmember Kevin Park, Vice Mayor Suds Jain, Councilmember Anthony Becker, and Mayor Lisa M.

Gillmor

Present: 7 -

1.A 22-1246 Conference with Real Property Negotiators (CC) Pursuant to Gov. Code § 54956.8
Property: 575 Pomeroy Avenue, Santa Clara, CA 95051-6131, APN:
293-09-005
City/Authority Negotiator: Rajeev Batra, City Manager (or designee) Negotiating Parties: Kilarney Farms Swim Center Inc.

Under Negotiation: Purchase/Sale/Exchange/Lease of Real Property (provisions, price and terms)

1.B 22-1254 Conference with Legal Counsel-Anticipated Litigation (CC) Pursuant to Gov. Code § 54956.9(d)(2) - Exposure to litigation Number of potential cases: 1
Facts and Circumstances: Pursuant to Gov. Code § 54956.9(e)(1) - Not disclosed on agenda

1.C 22-1260 Conference with Labor Negotiators (CC)
Pursuant to Gov. Code § 54957.6
City representative: City Manager’s designee
Employee Organization(s):

Unit #1-Santa Clara Firefighters Association, IAFF, Local 1171 Unit #2-Santa Clara Police Officer’s Association
Unit #3-IBEW Local 1245 (International Brotherhood of Electrical Workers) Unit #4-City of Santa Clara Professional Engineers
Units #5, 7 & 8-City of Santa Clara Employees Association Unit #6-AFSCME Local 101 (American Federation of State, County and Municipal Employees)
Unit #9-Miscellaneous Unclassified Management Employees Unit #9A-Unclassified Police Management Employees
Unit #9B-Unclassified Fire Management Employees
Unit #10-PSNSEA (Public Safety Non-Sworn Employees Association) Public Comment
Susan Hinton (eComment) expressed comments of commendation to the Fire Department in response to a fire.
22-1480 PUBLIC COMMENT POST MEETING MATERIAL
Convene to Closed Session (Council Conference Room)
Council convened to Closed Session at 6:04 PM.

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7:00 PM COUNCIL REGULAR MEETING
Call to Order
Mayor Gillmor called the regular meeting to order at 7:25 PM.

Pledge of Allegiance and Statement of Values
Council recited the Pledge of Allegiance.

Councilmember Chahal recited the Statement of Values.

Assistant City Clerk Pimentel recited the Statement of Behavioral Standards and AB 23 Announcement.

Assistant City Clerk Pimentel also noted that any registered Lobbyists speaking at a public meeting must identify themselves and whom they represent.

Mayor Gillmor called for a moment of silence in honor of William "Bill" Kelly (Retired Former Fire Chief) and Ted Rose (Retired Assistant Fire Chief).

REPORTS OF ACTION TAKEN IN CLOSED SESSION MATTERS
Interim City Attorney Ngo noted that there was no reportable action from Closed Session.

CONTINUANCES/EXCEPTIONS/RECONSIDERATIONS
None.

SPECIAL ORDER OF BUSINESS

2.A 22-831 Proclaim October 9-15, 2022 as Fire Prevention Week Mayor Gillmor proclaimed October 9-15 as Fire Prevention Week.

Beverly Molina (FireFighter, Paramedic, and Chief Diversity Equity and Inclusion Officer) provided comment recognizing Fire Prevention Week.

Council questions and comments followed.

Beverly Molina addressed Council questions.

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2.B 22-1202 Proclaim October 2022 as Breast Cancer Awareness Month Mayor Gillmor proclaimed October 2022 as Breast Cancer Awareness Month.

Kiana Mulqueeney (Senior Development Manager, American Cancer Society) accepted the proclamation and provided comments regarding the American Cancer Society.

2.C 22-1241 Proclaim October 2022 as Domestic Violence Awareness Month Mayor Gillmor proclaimed October 2022 as Domestic Violence Awareness Month.

Maitri (Domestic Violence Advocacy Organzation) accepted the proclamation.

Council comments followed.

CONSENT CALENDAR
Councilmember Chahal pulled Item 3.I.

A motion was made by Councilmember Becker, seconded by Vice Mayor Jain, to approve the balance of the Consent Calendar (except Item 3.I).

Aye: Councilmember Watanabe, Councilmember Chahal, Councilmember Hardy, Councilmember Park, Vice Mayor Jain, Councilmember Becker, and Mayor Gillmor
7 -

3.A 22-28 Board, Commissions and Committee Minutes
Recommendation: Note and file the Minutes of:

Planning Commission - August 24, 2022
Senior Advisory Commission - August 22, 2022
Board of Library Trustees - August 17, 2022
A motion was made by Councilmember Becker, seconded by Vice Chair Jain, to approve staff recommendation.

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3.B 22-1072 Action on Bills and Claims Report (CC, HA) for the period August 13, 2022 - September 2, 2022
Recommendation: Approve the list of Bills and Claims for August 13, 2022 - September 2, 2022.

A motion was made by Councilmember/Commissioner Becker, seconded by Vice Mayor/Vice Chair Jain, to approve staff recommendation.

3.C 22-1105 Action on Historic Resource Inventory Property Designation and Historical Preservation Agreement (Mills Act) for 633 Park Court
Recommendation: 1. Approve the addition of the property located at 633 Park Court to the City’s HRI; and

2. Authorize the City Manager to execute a Mills Act Contract and adopt the 10-Year Restoration and Maintenance Plan associated for the property at 633 Park Court.

A motion was made by Councilmember Becker, seconded by Vice Chair Jain, to approve staff recommendation.

3.D 22-1185 Action on a Resolution Approving a Purchase and Sale Agreement for an Easement on the Memorex Junction Transmission Line Extension Project Recommendation: 1. Adopt the Resolution approving the purchase of an overhead electric easement at 1040 Di Giulio Avenue [224-05-093] and authorize the City Manager to execute the related Purchase and Sale Agreement and accept associated easement deed; and

2. Authorize the easement deed to be recorded in the Office of the County Clerk-Recorder of the County of Santa Clara.

A motion was made by Councilmember Becker, seconded by Vice Chair Jain, to adopt Resolution No. 22-9144 approving the purchase of an overhead electric easement at 1040 Di Giulio Avenue [224-05-093] and authorize the City Manager to execute the related Purchase and Sale Agreement and accept associated easement deed; and authorization for the recordation of the Resolution.

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3.E 22-991 Action on Award of Contract to Ray’s Electric, Inc. and Amendment No. 1 to the Agreement with CSG Consultants, Inc. for the Uncontrolled Crosswalks Improvements Project
Recommendation: 1. Award the Public Works Contract for the Uncontrolled Crosswalks Improvements project to the lowest responsive and responsible bidder, Ray’s Electric, Inc, in the amount of $1,883,055, and authorize the City Manager to execute any and all documents associated with, and necessary for the award, completion, and acceptance of this Project;

2. Authorize the City Manager to execute change orders up to approximately 15 percent of the original contract price, or $282,460, for a total not to exceed amount of $2,165,515;

3. Authorize the City Manager to execute Amendment No. 1 to the Agreement with CSG Consultants, Inc. to extend the term to December 31, 2023 and increase the maximum compensation to $171,222; and

4. Authorize the City Manager to make minor modifications to the CSG Consultants, Inc. Agreement if needed and to extend the term.

A motion was made by Councilmember Becker, seconded by Vice Mayor Jain, to approve staff recommendation.

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3.F 22-166 Action to Delegate Authority to the City Manager to Negotiate and Execute Amendments to Agreements for Design Professional Services for Silicon Valley Power’s System Capacity Expansion Planning Including Plan Implementation and General Consulting Services
Recommendation: 1. Authorize the City Manager to negotiate and execute amendments to Agreements for Design Professional Services for Silicon Valley Power’s System Capacity Expansion Planning with an additional aggregate maximum compensation of $17 million, subject to the appropriation of funds for the following:

A. For general consulting services with:
1). Advisian Worley Group
2). TRC Solutions, Inc.
3). Leidos Engineering, LLC
4). Flynn Resource Consultants, Inc.
5). EN Engineering LLC
B. For plan implementation services with:
1). 1898 & Co.
2). TRC Solutions, Inc.
3). Electrical Consultants, Inc.
4). AECOM Technical Services, Inc.
5). Stantec Consulting Services Inc.; and

2. Authorize the City Manager to:

A. Execute amendments to extend the term of the Agreements if required to complete projects initiated during their term; B. Negotiate and execute amendments to add or delete services consistent with the scope of the agreements and allow future rate adjustments subject to request and justification by contractor, approval by the City, and the appropriation of funds; and C. Take such actions as necessary or advisable to implement the agreements as amended.

A motion was made by Councilmember Becker, seconded by Vice Mayor Jain, to approve staff recommendation.

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3.G 22-989 Action to Waive First Reading and Introduce an Ordinance Amending Chapter 12.35 (“Trees and Shrubs”) of Title 12 (“Streets, Sidewalks and Public Places”) of “The Code of the City of Santa Clara, California” to Modify the Process for Violation Appeals
Recommendation: Waive First Reading and Introduce an Ordinance Amending Chapter 12.35 “Trees and Shrubs” of Title 12 “Streets, Sidewalks and Public Places” of “The Code of the City of Santa Clara, California” to Modify the Process for Violation Appeals.

A motion was made by Councilmember Becker, seconded by Vice Mayor Jain, to pass to print Ordinance No. 2052, Amending Chapter

12.35 “Trees and Shrubs” of Title 12 “Streets, Sidewalks and Public Places” of “The Code of the City of Santa Clara, California” to Modify the Process for Violation Appeals.

3.H 22-1010 Action on a Resolution Extending AB 361 Implementation to Allow City Legislative Bodies to Hold Public Meetings Solely by Teleconference or Otherwise Electronically During the Governor’s Proclaimed COVID State of Emergency
Recommendation: Adopt a Resolution finding the existence of the need to extend AB 361 implementation to allow the City’s legislative bodies to hold public meetings solely by teleconference or otherwise electronically pursuant to AB 361.

A motion was made by Councilmember Becker, seconded by Vice Mayor Jain, to adopt Resolution No. 22-9145, finding the existence of the need to extend AB 361 implementation to allow the City’s legislative bodies to hold public meetings solely by teleconference or otherwise electronically pursuant to AB 361.

PUBLIC PRESENTATIONS
None.

CONSENT ITEMS PULLED FOR DISCUSSION
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3.I 22-1108 Update on a Written Petition to Consider Traffic Calming Measures on Cabrillo Avenue
Recommendation: Note and File the Update on a Written Petition to Consider Traffic Calming Measures on Cabrillo Avenue.

Councilmember Chahal pulled this item for further discussion.

Council comments followed.

A motion was made by Councilmember Chahal, seconded by
Councilmember Park, to note and file the Update on a Written Petition to Consider Traffic Calming Measures on Cabrillo Avenue.

Aye: Councilmember Watanabe, Councilmember Chahal, Councilmember Hardy, Councilmember Park, Vice Mayor Jain, Councilmember Becker, and Mayor Gillmor
7 -

PUBLIC HEARING/GENERAL BUSINESS
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4. 22-1258 Report on a Written Petition (Council Policy 030) Submitted by Councilmember Anthony Becker Regarding Letter Sent by Mayor Gillmor to Governor Newsom Regarding Department of Industrial Relations Investigation on Prevailing Wage Claims on the Related Santa Clara Project
Recommendation: There is no staff recommendation.

Councilmember Becker began the discussion and provided a verbal report on the Written Petition submitted by him regarding a letter sent by Mayor Gillmor to Governor Newsom Regarding Department of Industrial Relations Investigation on Prevailing Wage Claims on the Related Santa Clara Project.

Ruth Shikada (City Manager's Office) provided a verbal report.

Interim City Attorney Ngo addressed Council comments.

Council comments and questions followed.

Interim City Attorney Ngo addressed Council comments.

Council discussion ensued.

Public Speaker(s): Nicole Goehring Susan Hinton (eComment) Debbie Algieri Blaine Caya (E-Mail)
Ding Ding TV Gary Shandalov (E-Mail)
Deborah Philip Carnathan (E-Mail)
Lee Broughman Paolo Degrassi (E-Mail)
Robert Singleton Ryan Cavanagh (E-Mail)
Adam Thompson Terry James (E-Mail)
Larry McColloch Osama Martell (E-Mail)
Albert Lustre
Lee Strieb
Tim Thompson
Joseph J. Albanese (E-Mail)
Mike Fisher (E-Mail)
Gary Ferraris
Public Speaker (1) Steve Eimer
Council comments and questions followed.

Interim City Attorney Ngo addressed Council questions.

Council discussion ensued.

A motion was made by Councilmember Hardy, seconded by
Councilmember Chahal, to direct this item to Governance & Ethics Committee for policy review.

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Aye: Councilmember Chahal, Councilmember Hardy, Councilmember Park, Vice Mayor Jain, Councilmember Becker, and Mayor Gillmor 6 -
Nay: 1 - Councilmember Watanabe
Council comments and questions followed regarding scheduling Governance and Ethics Committee meeting.

Interim City Attorney Ngo and City Manager Batra addressed Council questions.

Council comments followed.

Public Speaker(s): Lee Broughman
WRITTEN PETITION (COUNCIL POLICY 030) REQUESTS SUBMITTED BY THE

PUBLIC/COUNCIL
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5. 22-1244 Action on a Written Petition (Council Policy 030), Submitted by Teresa O’Neill Requesting to Place an Agenda Item on a Future Council Meeting for a Public Review of the Settlement Agreement and Mutual Release dated August 31, 2022 between the City of Santa Clara, the Santa Clara Stadium Authority, and the 49er Football Team Entities
Recommendation: Staff makes no recommendation.

Items 5 & 6 have similar topics and was heard simultaneously.

Written Petitioner Teresa O'Neill provided a verbal report on her request for a public review of the Settlement Agreement and Mutual Release dated August 31, 2022 between the City of Santa Clara, the Santa Clara Stadium Authority, and the 49er Football Team Entities.

A motion was made by Councilmember Watanabe, seconded by Mayor Gillmor, to agendize this written petition combined with agenda Item #6 030 submitted by Vice Mayor Jain to be heard at either the Council meeting of October 18th or November 1st.

Council questions and comments followed.

City Manager Batra and Interim City Attorney Ngo addressed Council questions.

Public Speaker(s): Deborah
Lee Broughman
Susan Hinton (eComment)
Vice Mayor Jain read his written petition (Item 6) requesting to set a Study/Briefing Session for the public in which the terms of the Settlement Agreement are discussed as well as presentation of sources of revenues, to include an explanation of the Waterfall through which money flows as well as the rate at which the various Loans are being paid off.

A substitute motion was made by Councilmember Becker, seconded by Councilmember Hardy, to make the settlement agreement accessible on the website for the public, schedule a study session in the future following completion of any pending litigation with the 49ers limited to the buffet and public safety cost.

Vice Mayor Jain requested a friendly amendment to the substitute motion to return the study session either at the end of the litigation and or before January 31, 2023.

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Councilmember Becker did not accept the friendly amendment.

A motion was made by Councilmember Becker, seconded by
Councilmember Hardy, to consider the substitute motion.

Aye: Councilmember Chahal, Councilmember Hardy, Councilmember Park, Vice Mayor Jain, and Councilmember Becker
5 -
Nay: 2 - Councilmember Watanabe, and Mayor Gillmor
Motion Fails.

Council comments followed.

A motion was made by Councilmember Becker, seconded by
Councilmember Hardy, to make the settlement agreement
accessible on the website for the public access, schedule a study session in the future following completion of any pending litigation with the San Francisco 49ers limited to the buffet and public safety cost.

Aye: Councilmember Chahal, Councilmember Hardy, Councilmember Park, Vice Mayor Jain, and Councilmember Becker
5 -
Nay: 2 - Councilmember Watanabe, and Mayor Gillmor

6. 22-1250 Action on a Council Written Request (Council Policy 030) Submitted by Vice Mayor Jain Requesting to Place an Agenda Item at a Future Council Meeting to Set a Study/Briefing Session for the Public in which the Terms of the Settlement Agreement are Discussed as well as Presentation of Sources of Revenues, to include an explanation of the Waterfall through which Money Flows as well as the Rate at which the various Loans are being Paid Off
Recommendation: Staff makes no recommendation.

Items 5 & 6 have similar topics and was heard simultaneously.

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REPORTS OF MEMBERS AND SPECIAL COMMITTEES
Mayor Gillmor reported a great Parade of Champions and commended all in involved in putting on the event.

Councilmember Becker reported a successful Parade of Champions and commended Parade of Champions Committee and Ana Vargas Smith for her leadership.

Councilmember Park reported on the new exhibit, book club, and Poetry Picnic at the Triton Museum of Art.

Councilmember Hardy reminded the community that we are still in a water drought and take actions to conserve water.

CITY MANAGER/EXECUTIVE DIRECTOR REPORT
None.

ADJOURNMENT
The meeting was adjourned at 10:39 PM.

A motion was made by Councilmember Becker, seconded by
Councilmember Chahal, to adjourn the meeting.

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The time limit within which to commence any lawsuit or legal challenge to any quasi-adjudicative decision made by the City is governed by Section 1094.6 of the Code of Civil Procedure, unless a shorter limitation period is specified by any other provision. Under Section 1094.6, any lawsuit or legal challenge to any quasi-adjudicative decision made by the City must be filed no later than the 90th day following the date on which such decision becomes final. Any lawsuit or legal challenge, which is not filed within that 90-day period, will be barred. If a person wishes to challenge the nature of the above section in court, they may be limited to raising only those issues they or someone else raised at the meeting described in this notice, or in written correspondence delivered to the City of Santa Clara, at or prior to the meeting. In addition, judicial challenge may be limited or barred where the interested party has not sought and exhausted all available administrative remedies.

AB23 ANNOUNCEMENT: Members of the Santa Clara Stadium Authority, Sports and Open Space Authority and Housing Authority are entitled to receive $30 for each attended meeting.

Note: The City Council and its associated Authorities meet as separate agencies but in a concurrent manner. Actions taken should be considered actions of only the identified policy body.

LEGEND: City Council (CC); Stadium Authority (SA); Sports and Open Space Authority (SOSA); Housing Authority (HA); Successor Agency to the City of Santa Clara Redevelopment Agency (SARDA); Bayshore North Project Enhancement Authority (BNPEA); Public Facilities Financing Corporation (PFFC)
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email [email protected] <mailto:[email protected]> or at the public information desk at any City of Santa Clara public library.

If a member of the public submits a speaker card for any agenda items, their name will appear in the Minutes. If no speaker card is submitted, the Minutes will reflect "Public Speaker."
In accordance with the requirements of Title II of the Americans with Disabilities Act of 1990 ("ADA"), the City of Santa Clara will not discriminate against qualified individuals with disabilities on the basis of disability in its services, programs, or activities, and will ensure that all existing facilities will be made accessible to the maximum extent feasible. The City of Santa Clara will generally, upon request, provide appropriate aids and services leading to effective communication for qualified persons with disabilities including those with speech, hearing, or vision impairments so they can participate equally in the City’s programs, services, and activities. The City of Santa Clara will make all reasonable modifications to policies and programs to ensure that people with disabilities have an equal opportunity to enjoy all of its programs, services, and activities.

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MEETING DISCLOSURES
City of Santa Clara
Agenda Report
1500 Warburton Avenue
Santa Clara, CA 95050
santaclaraca.gov
@SantaClaraCity
23-05 Agenda Date: 1/31/2023

REPORT TO COUNCIL

SUBJECT
Board, Commissions and Committee Minutes

COUNCIL PILLAR
Enhance Community Engagement and Transparency

RECOMMENDATION
Note and file the Minutes of:

Planning Commission - November 9, 2022
Planning Commission - December 7, 2022
Cultural Commission - November 7, 2022
Cultural Commission - December 5, 2022
Youth Commission - December 13, 2022
Parks & Recreation Commission - November 15, 2022
Senior Advisory Commission - November 28, 2022
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City of Santa Clara
Meeting Minutes
Planning Commission
DRAFT
11/09/2022 6:00 PM City Hall Council Chambers and via Zoom The City of Santa Clara will be conducting Planning Commission meetings in a hybrid manner (in-person and virtual attendance). Pursuant to Government Code Section 54953(e) and City of Santa Clara Resolution 22-9150, Commissioners may teleconference from remote locations. The City continues to provide methods for the public to participate remotely:
• Via Zoom:
o https://santaclaraca.zoom.us/j/91729202898 Webinar ID: 917 2920 2898 or o Phone: 1(669) 900-6833
• Via the City’s eComment (available during the meeting) The public may view the meetings on SantaClaraCA.gov, Santa Clara City Television (Comcast cable channel 15 or AT&T U-verse channel 99), or the livestream on the City’s YouTube channel or Facebook page.

Public Comments prior to meeting may be submitted via email to [email protected] no later than noon on the day of the meeting; (Comments received after 12:00 PM on the day of the meeting will be made part of the public record but will not be read out loud during the meeting) and also before and during the meeting via eComment. Clearly indicate the project address, meeting body, and meeting date in the email.

PUBLIC PARTICIPATION IN ZOOM WEBINAR: Please follow the guidelines below when participating in a Zoom Webinar:

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- The meeting will be recorded so you must choose 'continue' to accept and stay in the meeting. - If there is an option to change the phone number to your name when you enter the meeting, please do so as your name will be visible online and will be used to notify you that it is your turn to speak.
- Mute all other audio before speaking. Using multiple devices can cause an audio feedback. - Use the raise your hand feature in Zoom when you would like to speak on an item and lower when finished speaking. Press *9 to raise your hand if you are calling in by phone only. - Identify yourself by name before speaking on an item. - Unmute when called on to speak and mute when done speaking. If there is background noise coming from a participant, they will be muted by the host. Press *6 if you are participating by phone to unmute.
- If you no longer wish to stay in the meeting once your item has been heard, please exit the meeting.
6:00 PM REGULAR MEETING
Call to Order
Chair Cherukuru called the meeting to order at 6 p.m.

Pledge of Allegiance and Statement of Values
Secretary Bhatnagar read the Statement of Values
Roll Call
Commissioner Yashraj Bhatnagar, Commissioner Nancy A. Biagini, Chair Priya Cherukuru, Vice Chair Ricci Herro, Commissioner Qian Huang, Commissioner Mario Bouza, and Commissioner Lance Saleme
Present 7 -

DECLARATION OF COMMISSION PROCEDURES
Secretary Bhatnagar read the Declaration of Procedures

CONTINUANCES/EXCEPTIONS
None.

CONSENT CALENDAR
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1.A 22-505 Planning Commission Meeting Minutes of October 26, 2022 Meeting Recommendation: Approve the Planning Commission Minutes of the October 26, 2022 Meeting
Commissioner Biagini announced she was absent from the previous meeting but had reviewed the meeting video and would be voting on the consent item.

Commissioner Herro abstained from voting because he was not at the previous meeting and also announced that he was attending the meeting via his phone since he was having problems with Zoom.

Chair Cherukuru thanked staff for a thorough job on the meeting minutes.

A motion was made by Commissioner Bouza, seconded by
Commissioner Biagini to approve the consent calendar.

Aye: Commissioner Bhatnagar, Commissioner Biagini, Chair Cherukuru, Commissioner Huang, Commissioner Bouza, and Commissioner Saleme
6 -
Abstained: 1 - Vice Chair Herro

PUBLIC PRESENTATIONS
None.

PUBLIC HEARING
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Planning Commission Meeting Minutes 11/09/2022

2. 22-1114 Action on an Architectural Review, Significant Property Alteration (SPA) Permit, and a Variance request and a Class 3 CEQA Categorical Exemption to convert an existing detached two-story structure into an Accessory Dwelling Unit (ADU) and garage at 1184 Washington Street Recommendation: Adopt a Class 3 Categorical Exemption Under CEQA Guidelines Section 15303; adopt a resolution to approve the Architectural Review; approve a Significant Property Alteration (SPA) permit; and adopt a resolution approving the variance to allow a 22’-6” building height for a detached accessory dwelling unit (ADU) where 16 feet is the maximum height allowed for the detached ADU’s in R1-6L, Single-family Residential Zoning District for the property located at 1184 Washington Street, subject to Conditions of approval.

Associate Planner Nimisha Agrawal provided the staff PowerPoint presentation.

Commissioners asked question regarding varying heights throughout the neighborhood and about the historic significance of the property and preservation of specific features. Staff clarified that the plans would maintain the historical integrity of the property.

Applicant Rob Mayer provided information on the project.

A motion was made by Commissioner Biagini, seconded by
Commissioner Bouza to close public hearing.

Aye: Commissioner Bhatnagar, Commissioner Biagini, Chair Cherukuru, Vice Chair Herro, Commissioner Huang, Commissioner Bouza, and Commissioner Saleme
7 -
A motion was made by Commissioner Saleme, seconded by
Commissioner Biagini to approve the
Architectural Review.

Aye: Commissioner Bhatnagar, Commissioner Biagini, Chair Cherukuru, Vice Chair Herro, Commissioner Huang, Commissioner Bouza, and Commissioner Saleme
7 -
A motion was made by Commissioner Biagini, seconded by
Commissioner Saleme to approve the SPA Permit.

Aye: Commissioner Bhatnagar, Commissioner Biagini, Chair Cherukuru, Vice Chair Herro, Commissioner Huang, Commissioner Bouza, and Commissioner Saleme
7 -
A motion was made by Commissioner Biagini, seconded by
Commissioner Bhatnagar to adopt a resolution to approve the variance.

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Aye: Commissioner Bhatnagar, Commissioner Biagini, Chair Cherukuru, Vice Chair Herro, Commissioner Huang, Commissioner Bouza, and Commissioner Saleme
7 -

3. 22-1313 Action on a Variance to the Rear Accessory Building Setback and the Accessory Building Setback from the Main Building, in Order to Allow a 68 square foot accessory building in the rear of a Single-Family Residence at 2121 Sheraton Drive; and Action on a Class 1(e) CEQA Categorical Exemption
Recommendation: Decline to utilize a Class 1 CEQA Categorical Exemption under CEQA Guidelines Section 15301(e)(2) and adopt a resolution to deny the Variance to the Rear Accessory Building Setback and the Accessory Building Setback from the Main Building for a 68 square foot hobby hut Associate Planner Daniel Sobzak provided the staff PowerPoint.

Commissioners inquired as to why this item was being presented to the Planning Commission and staff clarified this was a inquiry from the public that prompted a code violation. Commissioners noted that the there is no safety hazard for this project as noted by staff in the PCC meeting minutes.

Applicant/Homeowner Jim Horner provided a presentation and clarified the structure was originally a dilapidated shed and also showed a slide with similar rear units throughout the neighborhood that also violate city code.

Public Speaker:

Anndeathrin Chatterjee spoke in opposition of the project Grace Duran spoke in favor of the project
Assistant City Attorney Alexander Abbe clarified that land use decisions are largely non-precedential and that approval of the variance for this property would obligate the City to approve a variance for a different lot. .

A motion was made by Commissioner Saleme, seconded by
Commissioner Biagini to close public hearing.

Aye: Commissioner Bhatnagar, Commissioner Biagini, Chair Cherukuru, Vice Chair Herro, Commissioner Huang, Commissioner Bouza, and Commissioner Saleme
7 -
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A motion was made by Commissioner Biagini, seconded by
Commissioner Bouza, to approve the variance with the following four findings and to bring the approval resolution to the December 7, 2022 meeting as a consent item.

1. That unusual conditions apply to the land or building, in that the project site is trapezoidal and the existing landscaping and building configuration limit options for the location of the storage shed

2. That the granting of the variance is necessary for the preservation and enjoyment of the substantial property rights of the owner, in that relocating the storage shed would be infeasible, given the shape and configuration of the lot, without adverse impacts such as blocking windows and disturbing the homeowner’s considerable investment in the existing landscaping

3. That granting a variance shall not materially affect the health, safety, peace, comfort or general welfare of the persons or property in the neighborhood of the owner’s property, given that the project site has been occupied by a shed in the same location in prior years with no adverse effects, and the neighborhood is full of similar structures.

4. That granting a variance is in keeping with the intent and purpose of the zoning ordinance, in that the zoning ordinance recognizes that practical difficulties that could result from strict application of the Code’s standards justify departure from those standards

4. 22-1049 Study Session: Discussion of Land Use Topics to Recommend to the City Council for Council Consideration
Meeting went into Recess 8:00 p.m. and reconvened at 8:08 p.m.

Planning Manager Lesley Xavier provided a staff PowerPoint of Land Use topics that Commissioners previously brought forward for discussion in February 2022 and outlined new the topics submitted by Commissioners recently for this meeting. The list of Land Use Topics are to be presented to City Council for their consideration.

Commissioners had a robust discussion on the different topics and asked staff to streamline the list of topics for future discussion. Staff will provide an updated list at a future Planning Commission meeting for further review and finalization of the list.

REPORTS OF COMMISSION/BOARD LIAISON AND COMMITTEE:

1. Announcements/Other Items
Chair Cherukuru congratulated the incumbents who won their Council seats in the recent election, Councilmembers Hardy and Chahal.

2. Commissioner Travel and Training Reports, Requests to attend Trainings Planning Manager Lesley Xavier outlined the City Travel Policy and clarified there is a process to request an exception to the overnight accommodation policy should the Commission wish to make a request on this policy for local travel.

Commissioners spoke regarding the difference between mileage and time and the effect this has on serious commute issues and that the City's Travel Policy which stipulates 50 miles as the threshold to determine 'local' travel which determines whether or not overnight accommodations are allowed. Commissioners also spoke about the fact that they are volunteers seeking training to better serve the City and believe the Travel Policy should be reviewed and recommendations made on the specific issue of 'local travel' requirements/threshold for overnight accommodations.

Commissioners requested that staff take the steps to initiate an exception to the Travel Policy for overnight accommodations for this conference.

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1. 22-1372 CLE CEQA Conference- December 15-16, 2022 in San Francisco, CA Recommendation: Determine Commissioner attendance at upcoming Conference and vote to expend funds for registration and associated costs A motion was made by Commissioner Saleme, seconded by
Commissioner Bhatnagar to expend funds for Commissioners to attend the CLE CEQA Conference and that staff request an exception to the City's Travel Policy for Local travel to allow for overnight hotel accommodations. Commissioner requesting to attend are:

Saleme
Biagini
Bouza
Cherukuru

Aye: Commissioner Bhatnagar, Commissioner Biagini, Chair Cherukuru, Vice Chair Herro, Commissioner Huang,
Commissioner Bouza, and Commissioner Saleme
7 -
DIRECTOR OF COMMUNITY DEVELOPMENT REPORTS:

1. Planning Commission Budget Update
Staff Aide II Elizabeth Elliott provided budget updates.

2. Upcoming Agenda Items
Planning Manager Lesley Xavier provided updates.

3. City Council Actions
ADJOURNMENT:

The meeting adjourned at 9:09 p.m. The next regular scheduled meeting is December 7, 2022.

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The time limit within which to commence any lawsuit or legal challenge to any quasi-adjudicative decision made by the City is governed by Section 1094.6 of the Code of Civil Procedure, unless a shorter limitation period is specified by any other provision. Under Section 1094.6, any lawsuit or legal challenge to any quasi-adjudicative decision made by the City must be filed no later than the 90th day following the date on which such decision becomes final. Any lawsuit or legal challenge, which is not filed within that 90-day period, will be barred. If a person wishes to challenge the nature of the above section in court, they may be limited to raising only those issues they or someone else raised at the meeting described in this notice, or in written correspondence delivered to the City of Santa Clara, at or prior to the meeting. In addition, judicial challenge may be limited or barred where the interested party has not sought and exhausted all available administrative remedies.

If a member of the public submits a speaker card for any agenda items, their name will appear in the Minutes. If no speaker card is submitted, the Minutes will reflect "Public Speaker."
In accordance with the requirements of Title II of the Americans with Disabilities Act of 1990 ("ADA"), the City of Santa Clara will not discriminate against qualified individuals with disabilities on the basis of disability in its services, programs, or activities, and will ensure that all existing facilities will be made accessible to the maximum extent feasible. The City of Santa Clara will generally, upon request, provide appropriate aids and services leading to effective communication for qualified persons with disabilities including those with speech, hearing, or vision impairments so they can participate equally in the City’s programs, services, and activities. The City of Santa Clara will make all reasonable modifications to policies and programs to ensure that people with disabilities have an equal opportunity to enjoy all of its programs, services, and activities.

Agendas and other written materials distributed during a public meeting that are public record will be made available by the City in an appropriate alternative format.

Contact the City Clerk’s Office at 1 408-615-2220 with your request for an alternative format copy of the agenda or other written materials.

City of Santa Clara Page 9 Printed on 12/06/2022
City of Santa Clara
Meeting Minutes
Planning Commission
FINAL
12/07/2022 6:00 PM City Hall Council Chambers and via Zoom The City of Santa Clara will be conducting Planning Commission meetings in a hybrid manner (in-person and virtual attendance). Pursuant to Government Code Section 54953(e) and City of Santa Clara Resolution 22-9150, Commissioners may teleconference from remote locations. The City continues to provide methods for the public to participate remotely:
• Via Zoom:
o https://santaclaraca.zoom.us/j/91729202898 Webinar ID: 917 2920 2898 or o Phone: 1(669) 900-6833
• Via the City’s eComment (available during the meeting) The public may view the meetings on SantaClaraCA.gov, Santa Clara City Television (Comcast cable channel 15 or AT&T U-verse channel 99), or the livestream on the City’s YouTube channel or Facebook page.

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Planning Commission Meeting Minutes 12/07/2022
PUBLIC PARTICIPATION IN ZOOM WEBINAR: Please follow the guidelines below when participating in a Zoom Webinar:
- The meeting will be recorded so you must choose 'continue' to accept and stay in the meeting.
- If there is an option to change the phone number to your name when you enter the meeting, please do so as your name will be visible online and will be used to notify you that it is your turn to speak.
- Mute all other audio before speaking. Using multiple devices can cause an audio feedback.
- Use the raise your hand feature in Zoom when you would like to speak on an item and lower when finished speaking. Press *9 to raise your hand if you are calling in by phone only.
- Identify yourself by name before speaking on an item. - Unmute when called on to speak and mute when done speaking. If there is background noise coming from a participant, they will be muted by the host. Press *6 if you are participating by phone to unmute. - If you no longer wish to stay in the meeting once your item has been heard, please exit the meeting.
6:00 PM REGULAR MEETING
Call to Order
Secretary Bhatnagar called the meeting to order at 6:01 p.m.

Pledge of Allegiance and Statement of Values
Commissioner Biagini read the Statement of Values.

Roll Call
Commissioner Yashraj Bhatnagar, Commissioner Nancy A. Biagini, Commissioner Qian Huang, Commissioner Mario Bouza, and
Commissioner Lance Saleme
Present 5 -
Absent 2 - Chair Priya Cherukuru, and Vice Chair Ricci Herro A motion was made by Commissioner Biagini, seconded by
Commissioner Saleme to excuse Chair Cherukuru and
Commissioner Herro from the meeting.

Aye: Commissioner Bhatnagar, Commissioner Biagini, Commissioner Huang, Commissioner Bouza, and Commissioner Saleme
5 -

Absent: 2 - Chair Cherukuru, and Vice Chair Herro
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DECLARATION OF COMMISSION PROCEDURES
Commissioner Biagini read the Declaration of Commission Procedures.

CONTINUANCES/EXCEPTIONS
None.

CONSENT CALENDAR
A motion was made by Commissioner Bouza, seconded by
Commissioner Biagini to approve the Consent Calendar.

Aye: Commissioner Bhatnagar, Commissioner Biagini, Commissioner Huang, Commissioner Bouza, and Commissioner Saleme
5 -
Excused: 2 - Chair Cherukuru, and Vice Chair Herro

1.A 22-1494 Planning Commission Meeting Minutes of November 9, 2022 Meeting Recommendation: Approve the Planning Commission Minutes of the November 9, 2022 Meeting

1.B 22-1322 Action on a Variance Request from the Sign Ordinance and a Class 11 CEQA Categorical Exemption for the Size and Duration of Display for Three Temporary Vinyl Signs at 3600 Juliette Lane
Recommendation: Adopt a Class 11 Categorical Exemption Under CEQA Guidelines Section 15311 and adopt a resolution approving the variance allowing the increased sign area and duration for the display of three temporary vinyl signs at 3600 Juliette Lane.

1.C 22-1484 Action to adopt a Resolution to approve a Variance to rear accessory building setback and the accessory building setback from the main building, in order to allow a 68 square foot accessory building in the rear of a single-family residence at 2121 Sheraton Drive; and Action on a Section15301(e)(2) CEQA Categorical Exemption
Recommendation: Utilize a Class 1 CEQA Categorical Exemption under CEQA Guidelines Section 15301(e)(2) and adopt a resolution to approve the Variance to the Rear Accessory Building Setback and the Accessory Building Setback from the Main Building for a 68 square foot hobby hut

PUBLIC PRESENTATIONS
None.

PUBLIC HEARING
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2. 22-1428 Action on Use Permit and a Class 1 Categorical Exemption to allow on-site sale and service of beer and wine at a new full-service restaurant located at 2908 El Camino Real
Recommendation: Adopt Class 1 Existing Facilities Categorical Exemption under CEQA Guidelines Section 15301 and adopt a resolution approving a Use Permit to allow on-site sale and service of beer and wine at a new full-service restaurant located at 2908 El Camino Real.

Associate Planner Debby Fernandez provide the staff PowerPoint.

Applicant Sean Kang answered questions from Commissioners regarding traffic concerns for this proposed project.

A motion was made by Commissioner Biagini, seconded by
Commissioner Bouza to close public hearing.

Aye: Commissioner Bhatnagar, Commissioner Biagini, Commissioner Huang, Commissioner Bouza, and Commissioner Saleme
5 -
Excused: 2 - Chair Cherukuru, and Vice Chair Herro
A motion was made by Commissioner Bouza, seconded by
Commissioner Saleme to approve Staff Recommendation

Aye: Commissioner Bhatnagar, Commissioner Biagini, Commissioner Huang, Commissioner Bouza, and Commissioner Saleme
5 -
Excused: 2 - Chair Cherukuru, and Vice Chair Herro

3. 22-1495 Discussion of Updated List (from November 9, 2022 Planning Commission Meeting) of Land Use Topics to Recommend to the City Council for Council Consideration
Planning Manager Lesley Xavier provided a PowerPoint presentation outlining the Commission discussion on this topic at the previous meeting.

Commissioners had a robust discussion to add additional items to the existing list. Some of the items discussed included:
- Blight due to projects taking a lengthy time to be completed; can a time limit be set a vacant building ordinance.
- Requirements to be established for empty buildings to prevent squatters - Request for Silicon Valley Power to provide another presentation to the Planning Commission
Planning Manager Lesley Xavier stated she will compile an updated list based upon Commissioner input and requests.

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4. 22-1497 Discussion of City Travel Policy (from November 9, 2022 Planning Commission Meeting) and Possible Recommendations
Commissioners provided the following input for possible changes to the City Travel Policy:

Local Travel policy is defined as 50 miles or less from location of travel and overnight accommodations are not permitted if travel is considered local.

Commissioners discussed that the commute could be a significant amount of time based upon the location of the Conference, for example, the commute to San Francisco would take a much longer time than a commute in a less commuter congested area.

Commissioners provided a suggestion that the Travel Policy should include a time element and not just a mileage element. Staff responded that this request will be provided to the City Manager for review and consideration.

REPORTS OF COMMISSION/BOARD LIAISON AND COMMITTEE:

1. Announcements/Other Items

2. Commissioner Travel and Training Reports, Requests to attend Trainings Commissioners thanked Staff Aide II Elizabeth Elliott for pursuing an exception to the Travel Policy for overnight accommodations at the upcoming CLE CEQA Conference taking place December 14-16, 2022 in San Francisco.

A motion was made by Commissioner Biagini, seconded by
Commissioner Bouza to expend funds for Commissioners to virtually attend the State of the Valley Conference taking place February 17, 2023 not to exceed $250.

Aye: Commissioner Bhatnagar, Commissioner Biagini, Commissioner Huang, Commissioner Bouza, and Commissioner Saleme
5 -
Excused: 2 - Chair Cherukuru, and Vice Chair Herro
DIRECTOR OF COMMUNITY DEVELOPMENT REPORTS:

1. Planning Commission Budget Update
Staff Aide II Elizabeth Elliott provided budget updates.

2. Upcoming Agenda Items
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3. City Council Actions
Planning Manager Lesley Xavier provided updates.

ADJOURNMENT:

A motion was made by Commissioner Biagini, seconded by
Commissioner Bouza to adjourn the meeting.

The meeting adjourned at 6:55 p.m. The next regular scheduled meeting is January 11, 2023.

Aye: Commissioner Bhatnagar, Commissioner Biagini, Commissioner Huang, Commissioner Bouza, and Commissioner Saleme
5 -
Excused: 2 - Chair Cherukuru, and Vice Chair Herro
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Planning Commission Meeting Minutes 12/07/2022
The time limit within which to commence any lawsuit or legal challenge to any quasi-adjudicative decision made by the City is governed by Section 1094.6 of the Code of Civil Procedure, unless a shorter limitation period is specified by any other provision. Under Section 1094.6, any lawsuit or legal challenge to any quasi-adjudicative decision made by the City must be filed no later than the 90th day following the date on which such decision becomes final. Any lawsuit or legal challenge, which is not filed within that 90-day period, will be barred. If a person wishes to challenge the nature of the above section in court, they may be limited to raising only those issues they or someone else raised at the meeting described in this notice, or in written correspondence delivered to the City of Santa Clara, at or prior to the meeting. In addition, judicial challenge may be limited or barred where the interested party has not sought and exhausted all available administrative remedies.

If a member of the public submits a speaker card for any agenda items, their name will appear in the Minutes. If no speaker card is submitted, the Minutes will reflect "Public Speaker."
In accordance with the requirements of Title II of the Americans with Disabilities Act of 1990 ("ADA"), the City of Santa Clara will not discriminate against qualified individuals with disabilities on the basis of disability in its services, programs, or activities, and will ensure that all existing facilities will be made accessible to the maximum extent feasible. The City of Santa Clara will generally, upon request, provide appropriate aids and services leading to effective communication for qualified persons with disabilities including those with speech, hearing, or vision impairments so they can participate equally in the City’s programs, services, and activities. The City of Santa Clara will make all reasonable modifications to policies and programs to ensure that people with disabilities have an equal opportunity to enjoy all of its programs, services, and activities.

Agendas and other written materials distributed during a public meeting that are public record will be made available by the City in an appropriate alternative format.

Contact the City Clerk’s Office at 1 408-615-2220 with your request for an alternative format copy of the agenda or other written materials.

City of Santa Clara Page 7 Printed on 01/05/2023
City of Santa Clara
Meeting Minutes
Cultural Commission
Draft
11/07/2022 7:00 PM Virtual Meeting
Pursuant to California Government Code Section 54953(e) and City of Santa Clara Resolution 22-9150, the Cultural Commission meeting will be held by teleconference only. No physical location will be available for this meeting; however, the City of Santa Clara continues to have methods for the public to participate remotely:

Via Zoom:
https://santaclaraca.zoom.us/j/98272283531
Webinar ID: 982 7228 3531
Or join by phone: 1-669-900-6833

CALL TO ORDER AND ROLL CALL
Chair Diaz called the meeting to order at 7:11 p.m.

Chair Diaz mentioned that effective Nov. 1 Commissioner Garcia-Vega has been removed from the Cultural Commission due to lack of attendance. There is currently a vacancy on the commission.

Vice Chair Louis Samara, Commissioner Debra von Huene, Chair Candida Diaz, Commissioner Jonathan Marinaro, and Commissioner Paul McNamara
Present 5 -
Absent 1 - Commissioner Siddarth Sundaram

CONSENT CALENDAR

1.A 22-1308 Cultural Commission Regular Meeting Minutes of October 3, 2022 Recommendation: Approve the Cultural Commission Regular Meeting Minutes of October 3, 2022
A motion was made by Commissioner Marinaro, seconded by Commissioner von Huene, that this item be approved. The motion passed with the following vote:

Aye: Vice Chair Samara, Commissioner von Huene, Chair Diaz, Commissioner Marinaro, and Commissioner McNamara
5 -
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Absent: 1 - Commissioner Sundaram

PUBLIC PRESENTATIONS
None.

GENERAL BUSINESS

2. 22-1345 Recommend a Cultural Commission member to serve on the Station Area Task Force
Recommendation: Staff does not have a recommendation.

Rebecca Bustos, Community Development Dept. Planning Division, gave a presentation on the Station Area Task Force (SATF). The City is seeking a member of the Cultural Commission to serve on the Station Area Task Force. This will be presented to council on Nov.14.

A motion was made by Vice Chair Samara, seconded by
Commissioner McNamara, that Chair Diaz serve on the Station Area Task Force.

Aye: Vice Chair Samara, Commissioner von Huene, Chair Diaz, and Commissioner McNamara
4 -
Nay: 1 - Commissioner Marinaro

Absent: 1 - Commissioner Sundaram
A motion was made by Commissioner von Huene, seconded by Vice Chair Samara, that Commissioner Marinaro serve as an alternate on the Station Area Task Force.

Aye: Vice Chair Samara, Commissioner von Huene, Chair Diaz, Commissioner Marinaro, and Commissioner McNamara
5 -

Absent: 1 - Commissioner Sundaram
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3. 22-1363 Initiate Dialogue Between Parks & Recreation Commission and Cultural Commission for Potential Special Event Collaboration
Recommendation: Staff does not have a recommendation.

Parks & Recreation Chair Forte gave a presentation about the Parks & Recreation Commission collaborating with the Cultural Commission on future events. Examples include a game, peripheral event, WarBow League, or Multi Cultural Market, possibly at a summer Concert in the Park.

Deputy Director Seal stated that the current Agenda Report's mission is to add a new element or activity for special event attendees at an existing Parks & Recreation Commission hosted event. The goal needs to be consistent with the direction of the commission. The Parks & Recreation Commission will meet and update the details and mission of the goal.

Updates will be given at future meetings and added to a future Work Plan for further discussion.

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4. 22-1288 Discussion of Cultural Commission Work Plan Goals and Activities for FY 2022/23
Recommendation: Develop, discuss and recommend Cultural Commission work plan goals and activities for FY 2022/23.

Commissioners reported the following updates to the Cultural Commission Work Plan Goals for 2022/23.

GOAL #1: Host and enhance multicultural events to encourage and acquaint Santa Clara residents with cultural diversity.

Concerts: Vice Chair Samara reported that the Oct. 7 Latin Heat concert was amazing. Commission should look at calendar when planning 2023 dates and see what other events are occurring.

Chair Diaz gave a budget update. Commission discussed possibly adding an additional Bollywood concert to the line up at Live Oak Park for 2023.

Sponsor Packet will be updated for 2023 events and the commission will work to recruit businesses to partner with the events.

GOAL #2: Develop and encourage interactive, art opportunities to provide temporary, performing, cultural, and public art in the City.

Utility Box Art-Chair Diaz provided an update on the Utility Box Art Program. One artist has completed the project. Remaining artists are finalizing their agreements and insurance policies.

Halloween Home Decorating Contest-Commissioner von Huene reported the rubric used for judging the Halloween Home Decorating Contest was based on creativity and spookiness. There were complaints from the public regarding the winners. Recreation Manager Castro read an email that provided feedback by a member of the public regarding the Halloween Home Decorating Contest. They were invited to attend the meeting, but did not attend. Commission discussed the dates of the contest and possibly extending the time frame for 2023. Marketing ideas for future contests were discussed.

Commissioner von Huene delivered the Halloween signs. She requested help for the Holiday Home Decorating Contest. Commissioner Marinaro volunteered to help deliver the Holiday Home Decorating signs.

Holiday Home Decorating-Updates will be made to the dates and judging rubric determined. Contest criteria has been updated. Theme has City of Santa Clara Page 4 Printed on 01/10/2023
Cultural Commission Meeting Minutes 11/07/2022
been determined. Suggestion was made to put dates on City Calendar so public is aware.

Map-Completed Utility Boxes will be added.

GOAL #3: Raise the visibility of commemorative months.

Vice Chair Samara will work on a proposal for marketing for commemorative months. Information will be put on the Cultural Commission Facebook page to raise visibility. Commissioner von Huene posted Nov. coloring page on Facebook. Suggestion was made to re-instate the artist to make additional coloring pages.

GOAL #4: Enhance communication and media strategy to increase community awareness of the Cultural Commission.

Commissioners Marinaro and McNamara will meet on marketing strategies.

Commission will report to Council in 2023.

GOAL #5: Prepare for Citywide Arts Master Plan Process
Commissioner von Huene reported that Aug. 2023 is the deadline for the Master Plan. Master Plans from other cities are being reviewed.

STAFF REPORT
Recreation Manager Castro mentioned that a RFP for a consultant has been released for the Patrick Henry Drive Master Art Plan. She will send a link to the commissioners.

COMMISSIONERS REPORT
Commissioner Marinaro encouraged everyone to attend the Opera Sat.

Nov. 12. to see the award winning performance of"Cinderella." Chair Diaz thanked City staff for their help on Commission projects.

ADJOURNMENT
A motion was made by Commissioner McNamara, seconded by Commissioner Marinaro, that the meeting be adjourned at 8:48 p.m.

Aye: Vice Chair Samara, Commissioner von Huene, Chair Diaz, Commissioner Marinaro, and Commissioner McNamara
5 -
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Absent: 1 - Commissioner Sundaram

MEETING DISCLOSURES
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The time limit within which to commence any lawsuit or legal challenge to any quasi-adjudicative decision made by the City is governed by Section 1094.6 of the Code of Civil Procedure, unless a shorter limitation period is specified by any other provision. Under Section 1094.6, any lawsuit or legal challenge to any quasi-adjudicative decision made by the City must be filed no later than the 90th day following the date on which such decision becomes final. Any lawsuit or legal challenge, which is not filed within that 90-day period, will be barred. If a person wishes to challenge the nature of the above section in court, they may be limited to raising only those issues they or someone else raised at the meeting described in this notice, or in written correspondence delivered to the City of Santa Clara, at or prior to the meeting. In addition, judicial challenge may be limited or barred where the interested party has not sought and exhausted all available administrative remedies.

If a member of the public submits a speaker card for any agenda items, their name will appear in the Minutes. If no speaker card is submitted, the Minutes will reflect "Public Speaker."
In accordance with the requirements of Title II of the Americans with Disabilities Act of 1990 ("ADA"), the City of Santa Clara will not discriminate against qualified individuals with disabilities on the basis of disability in its services, programs, or activities, and will ensure that all existing facilities will be made accessible to the maximum extent feasible. The City of Santa Clara will generally, upon request, provide appropriate aids and services leading to effective communication for qualified persons with disabilities including those with speech, hearing, or vision impairments so they can participate equally in the City’s programs, services, and activities. The City of Santa Clara will make all reasonable modifications to policies and programs to ensure that people with disabilities have an equal opportunity to enjoy all of its programs, services, and activities.

Agendas and other written materials distributed during a public meeting that are public record will be made available by the City in an appropriate alternative format.

Contact the City Clerk’s Office at 1 408-615-2220 with your request for an alternative format copy of the agenda or other written materials.

City of Santa Clara Page 7 Printed on 01/10/2023
City of Santa Clara
Meeting Minutes
Cultural Commission
Draft
12/05/2022 7:00 PM Virtual Meeting
Pursuant to California Government Code Section 54953(e) and City of Santa Clara Resolution 22-9150, the Cultural Commission meeting will be held by teleconference only. No physical location will be available for this meeting; however, the City of Santa Clara continues to have methods for the public to participate remotely:

Via Zoom:
https://santaclaraca.zoom.us/j/98272283531
Webinar ID: 982 7228 3531
Or join by phone: 1-669-900-6833

CALL TO ORDER AND ROLL CALL
Vice Chair Samara called the meeting to order at 7:15 p.m. The meeting was canceled due to lack of quorum.

Commissioner Siddarth Sundaram, Vice Chair Louis Samara, and Chair Candida Diaz
Present 3 -
Excused 1 - Commissioner Debra von Huene
Commissioner Jonathan Marinaro, and Commissioner Paul
McNamara
Absent 2 -

CONSENT CALENDAR

1.A 22-1435 Cultural Commission Regular Meeting Minutes of November 7, 2022 Recommendation: Approve the Cultural Commission Regular Meeting Minutes of November 7, 2022

PUBLIC PRESENTATIONS

GENERAL BUSINESS
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2. 22-1437 Discussion of Cultural Commission Work Plan Goals and Activities for FY 2022/23
Recommendation: Develop, discuss and recommend Cultural Commission work plan goals and activities for FY 2022/23.

STAFF REPORT

COMMISSIONERS REPORT

ADJOURNMENT
The meeting was adjourned by Vice Chair Samara at 7:22 p.m. due to lack of quorum.

The next meeting of the Cultural Commission is January 9, 2023.

MEETING DISCLOSURES
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Cultural Commission Meeting Minutes 12/05/2022
The time limit within which to commence any lawsuit or legal challenge to any quasi-adjudicative decision made by the City is governed by Section 1094.6 of the Code of Civil Procedure, unless a shorter limitation period is specified by any other provision. Under Section 1094.6, any lawsuit or legal challenge to any quasi-adjudicative decision made by the City must be filed no later than the 90th day following the date on which such decision becomes final. Any lawsuit or legal challenge, which is not filed within that 90-day period, will be barred. If a person wishes to challenge the nature of the above section in court, they may be limited to raising only those issues they or someone else raised at the meeting described in this notice, or in written correspondence delivered to the City of Santa Clara, at or prior to the meeting. In addition, judicial challenge may be limited or barred where the interested party has not sought and exhausted all available administrative remedies.

If a member of the public submits a speaker card for any agenda items, their name will appear in the Minutes. If no speaker card is submitted, the Minutes will reflect "Public Speaker."
In accordance with the requirements of Title II of the Americans with Disabilities Act of 1990 ("ADA"), the City of Santa Clara will not discriminate against qualified individuals with disabilities on the basis of disability in its services, programs, or activities, and will ensure that all existing facilities will be made accessible to the maximum extent feasible. The City of Santa Clara will generally, upon request, provide appropriate aids and services leading to effective communication for qualified persons with disabilities including those with speech, hearing, or vision impairments so they can participate equally in the City’s programs, services, and activities. The City of Santa Clara will make all reasonable modifications to policies and programs to ensure that people with disabilities have an equal opportunity to enjoy all of its programs, services, and activities.

Agendas and other written materials distributed during a public meeting that are public record will be made available by the City in an appropriate alternative format.

Contact the City Clerk’s Office at 1 408-615-2220 with your request for an alternative format copy of the agenda or other written materials.

City of Santa Clara Page 3 Printed on 01/10/2023
City of Santa Clara
Meeting Minutes
Youth Commission
Draft
6:00 PM Teen Center
2446 Cabrillo Avenue
Santa Clara, CA 95051
12/13/2022

CALL TO ORDER AND ROLL CALL
The meeting was called to order by Chair Kelly-Tanti at 6:08 p.m.

Commissioner Fatimah Ismail, Commissioner Hiranya Parekh, Commissioner Jasmine Kelly-Tanti, Commissioner Khadeejah Khan, Commissioner Kira Liang, Commissioner Samaira Mehta,
Commissioner Samarth Suresh, Commissioner Simren Garg,
Commissioner Keith Maben, and Commissioner Sudeepthi Ravipati Present 10 -
Commissioner Aarav Gupta , Commissioner Malia Martin,
Commissioner Rajvi Khanjan Shroff, Commissioner Sarah Zuo, and Commissioner Ryan Kim
Absent 5 -
A motion was made by Commissioner Suresh, seconded by
Commissioner Khan, to excuse Commissioners Gupta, Kim, Martin, Shroff, and Zuo from the December 13, 2022 meeting. The motion carried by the following vote:

Absent: Commissioner Gupta, Commissioner Martin, Commissioner Shroff, Commissioner Zuo, and Commissioner Kim
5 -

CONSENT CALENDAR

1.A 22-1467 Youth Commission Minutes of November 8, 2022 Recommendation: Approve the Youth Commission Meeting Minutes of November 8, 2022.

A motion was made by Commissioner Ismail, seconded by
Commissioner Suresh, that this item be recommended for approval.

The motion carried by the following vote:

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Youth Commission Meeting Minutes 12/13/2022

Aye: Commissioner Ismail, Commissioner Parekh, Commissioner Kelly-Tanti, Commissioner Khan, Commissioner Liang, Commissioner Mehta, Commissioner Suresh, Commissioner Garg, Commissioner Maben, and Commissioner Ravipati
10 -
Excused: Commissioner Gupta, Commissioner Martin, Commissioner Shroff, Commissioner Zuo, and Commissioner Kim
5 -

PUBLIC PRESENTATIONS
None

GENERAL BUSINESS

2. 22-1468 Youth Commission FY2022/23 Work Plan & Goals Recommendation: Staff makes no recommendation.

Youth Commission Committee Reports on Work Plan Goals for FY2022/23 Community Building: Initial ideas included continuation of intergenerational chats with Senior members of the community, civic engagement including encouraging voter pre-registration, and collaborating with the Library for youth-focused activities.

Youth Empowerment: Potential ideas included continuing the podcast focused on youth trends, improving teen mental health, and open challenges to potentially offer youth-based solutions to civic challenges.

Youth Outreach: Potential ideas included "Welcome to Santa Clara" resources to new youth residents in the City, identifying needs of youth in the community through informal surveys, and creating a resource page for youth to access services in the area.

STAFF REPORT
Gayle Ichiho, Parks & Recreation: Shared recap of the Holiday Tree Lighting event, various holiday programs including Breakfast with Santa and Evening with Santa, and classes and activities available in the Winter Activity Guide.

Shel Grinstead, Library: After the holiday break, Teen Hangouts will resume on January 3 at Central Library, the next Teen Library Leaders meeting is on Tuesday, January 31, and the first group of youth Library interns has completed their assignment.

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Youth Commission Meeting Minutes 12/13/2022

COMMISSIONERS REPORT
None

ADJOURNMENT
A motion was made by Commissioner Suresh, seconded by
Commissioner Garg, that this meeting be adjourned at 6:25 p.m. The motion carried by the following vote:

MEETING DISCLOSURES
City of Santa Clara Page 3 Printed on 01/12/2023
Youth Commission Meeting Minutes 12/13/2022
The time limit within which to commence any lawsuit or legal challenge to any quasi-adjudicative decision made by the City is governed by Section 1094.6 of the Code of Civil Procedure, unless a shorter limitation period is specified by any other provision. Under Section 1094.6, any lawsuit or legal challenge to any quasi-adjudicative decision made by the City must be filed no later than the 90th day following the date on which such decision becomes final. Any lawsuit or legal challenge, which is not filed within that 90-day period, will be barred. If a person wishes to challenge the nature of the above section in court, they may be limited to raising only those issues they or someone else raised at the meeting described in this notice, or in written correspondence delivered to the City of Santa Clara, at or prior to the meeting. In addition, judicial challenge may be limited or barred where the interested party has not sought and exhausted all available administrative remedies.

If a member of the public submits a speaker card for any agenda items, their name will appear in the Minutes. If no speaker card is submitted, the Minutes will reflect "Public Speaker."
In accordance with the requirements of Title II of the Americans with Disabilities Act of 1990 ("ADA"), the City of Santa Clara will not discriminate against qualified individuals with disabilities on the basis of disability in its services, programs, or activities, and will ensure that all existing facilities will be made accessible to the maximum extent feasible. The City of Santa Clara will generally, upon request, provide appropriate aids and services leading to effective communication for qualified persons with disabilities including those with speech, hearing, or vision impairments so they can participate equally in the City’s programs, services, and activities. The City of Santa Clara will make all reasonable modifications to policies and programs to ensure that people with disabilities have an equal opportunity to enjoy all of its programs, services, and activities.

Agendas and other written materials distributed during a public meeting that are public record will be made available by the City in an appropriate alternative format.

Contact the City Clerk’s Office at 1 408-615-2220 with your request for an alternative format copy of the agenda or other written materials.

City of Santa Clara Page 4 Printed on 01/12/2023
City of Santa Clara
Meeting Minutes
Parks & Recreation Commission
Draft
11/15/2022 7:00 PM Virtual Meeting
Pursuant to California Government Code Section 54953(e) and City of Santa Clara Resolution 22-9150, the Parks & Recreation Commission meeting will be held by teleconference only. No physical location will be available for this meeting; however, the City of Santa Clara continues to have methods for the public to participate remotely:

Via Zoom:
https://santaclaraca.zoom.us/j/91316665755
Meeting ID: 913 1666 5755 or
Phone: (669) 900-6833

CALL TO ORDER AND ROLL CALL
Vice Chair Caldwell called the meeting to order at 7:05 PM.

Vice Chair Dana Caldwell, Commissioner Maureen Chu,
Commissioner Burt Field , Commissioner Eversley Forte,
Commissioner Sajid Hai, and Commissioner Brittany Ricketts Present 6 -
Absent 1 - Chair Kelly Cox
Comissioner Chu made a motion, seconded by Commissioner Hai to excuse Chair Cox.

Aye: Vice Chair Caldwell, Commissioner Chu, Commissioner Field , Commissioner Forte, Commissioner Hai, and Commissioner Ricketts 6 -
Excused: 1 - Chair Cox

CONSENT CALENDAR
Commissioner Field abstained from voting on item 1.B. of the Consent Calendar.

Commissioner Forte made a motion, seconded by Commissioner Field to approve the Consent Calendar.

Aye: Vice Chair Caldwell, Commissioner Chu, Commissioner Field , Commissioner Forte, Commissioner Hai, and Commissioner Ricketts 6 -
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Parks & Recreation Commission Meeting Minutes 11/15/2022 Excused: 1 - Chair Cox

1.A 22-1327 Action on the Parks & Recreation Commission Minutes of the October 18, 2022 Meeting
Recommendation: Approve the Parks & Recreation Commission Minutes of the October 18, 2022 Meeting.

1.B 22-1343 Consider a Request from the Santa Clara Youth Soccer League for a Financial Grant in the Amount of $6,693 from the Wade Brummal Youth Sports Grant Program
Recommendation: Approve the SCYSL request for a Wade Brummal Youth Sports Grant in the amount of $6,693.

PUBLIC PRESENTATIONS
Mr. Lu, a member of the public attended the meeting. He spoke about the speed of scooters along the San Tomas Aquino Trail as a point of concern that should be addressed in the future.

Julie Corrigan, the Santa Clara Swim Club Team Manager attended the meeting and expressed her appreciation to Commission and staff for maintaining the pools. She supports the concepts to the Central Park Master Plan, and having a 50 meter pool that is also part of the Central Park Master Plan. She is looking forward to getting the Mary Gomez Park pool up and running soon as there are 700 hundred kids in swim programs there.

GENERAL BUSINESS

2. 22-1326 Consideration of the Schematic Design - Master Plan for the New Public Neighborhood East Park at 5155 Stars & Stripes Drive (Related Urban) Recommendation: Recommend that Council approve the proposed Schematic Design - Master Plan for the East Neighborhood Park to be located at 5155 Stars & Stripes Blvd.

The Commission received additional input from the public about the need to design the park for recreation purposes and transportation/bicycles, and to judiciously use the right trees in the right place in the design, which the Commission took into consideration in reviewing the Schematic Design.

The Schematic Design is prioritized for recreational usage for the community. The usage of drought tolerant trees and plantings conforms with the approved Related City Place Project.

Commissioner Forte made a motion, seconded by Commissioner Chu to recommend approval of the Schematic Design - Master Plan for the new public neighborhood East Park at 5155 Stars & Stripes Drive (Related Urban).

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Parks & Recreation Commission Meeting Minutes 11/15/2022

Aye: Vice Chair Caldwell, Commissioner Chu, Commissioner Field , Commissioner Forte, Commissioner Hai, and Commissioner Ricketts 6 -
Excused: 1 - Chair Cox

3. 22-1356 Initiate Community Input Process for the proposed Schematic Design for a New Public Mini Park at 3000 Patrick Henry Drive (SummerHill - Patrick Henry Drive Specific Plan)
Recommendation: Provide input on a proposed Schematic Design for a New Mini Park to be located at 3000 Patrick Henry Drive.

The Commission provided feedback about community input and encouraged the public to take advantage of opportunities to participate in surveys and meetings for the new public Mini Park at 3000 Patrick Henry Drive. Flyers about this project will be available at the Tree Lighting Ceremony on December 2. There will be a virtual public meeting for this project at 6:30 PM on December 12. Detailed information will be available on the Park Projects webpage. As a standard practice, the Department's social media channels will publicize the outreach efforts. In addition, Director Teixeira provided a summary to give the Commission context about the location of the new Mini Park, which will be immediately adjacent to the proposed art center that the commission will review at an upcoming meeting. The Mini Park consists of active recreational spaces. The two spaces will function synergistically to provide a unique experience for patrons.

Commissioner Chu made a motion, seconded by Commissioner Field to initiate the community input process for the proposed schematic design for the new public mini park at 3000 Patrick Henry Drive.

Aye: Vice Chair Caldwell, Commissioner Chu, Commissioner Field , Commissioner Forte, Commissioner Hai, and Commissioner Ricketts 6 -
Excused: 1 - Chair Cox
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Parks & Recreation Commission Meeting Minutes 11/15/2022

4. 22-1328 Parks & Recreation Commission Work Plan Goals for FY2022/23 Recommendation: Report on activities and efforts in support of the Commission’s Work Plan Goals for FY 2022/23.

Work Plan Goals:

A: 1) Review park site and facility condition assessments and recommend priorities given existing and anticipated service levels and available resources;
Subcommittee: Vice Chair Caldwell, Commissioner Field, and Chair Cox.

Status as of 11/15/2023: The subcommittee had an enlightening meeting with Parks & Recreation Department staff at City Hall for a holistic review of park projects that included current status, funding, timelines, deficiencies, etc. which will assist the subcommittee in recommending the prioritization of projects. They learned more about the aged and failing infrastructure within the park system and the importance of updating the facility condition assessment planned for 2023. The subcommittee received feedback from Mr. Gupta (affiliated with the Santa Clara Swim Club) regarding support for the Central Park Master Plan particularly in the context of having a new swim center given the failing infrastructure of the International Swim Center. Families involved with swimming programs have a vested interest in becoming more involved in supporting efforts to see the Central Park Master Plan executed.

B: 1) Review and solicit community input on the existing City park rehabilitation projects based on the current Capital Improvement Program (CIP) Budget and schedule; and 2) Review residential developer proposed schematic designs for new neighborhood parks that serve new residential development;
Subcommittee: Commissioner Chu and Commissioner Hai.

Status as of 11/15/2023: B1. The subcommittee plans to increase community input through neighborhood Facebook groups for the proposed Schematic Design for he new Mini Park at 3000 Patrick Henry Drive. B2. Subcommittee is pleased to see the Commission approve the new public neighborhood park at 5155 Stars & Stripes Drive.

C: 1) Host and develop recommendations for the annual Santa Clara Art & Wine Festival 2023; and 2) participate in Citywide Special events; and Status as of 11/15/2023: No update,.

D: 1) Partner with at least one other City commission to build on/expand at least one existing Parks & Recreation event by adding one extra element for patrons to interact with during the event.

Subcommittee: Commissioner Forte and Commissioner Ricketts.

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Parks & Recreation Commission Meeting Minutes 11/15/2022 Status as of 11/15/2023: Commissioner Forte met with the Cultural Commission and the Youth Commission respectively on December 7 and 8. The Cultural Commission was receptive to collaborating and learning more about adding a multicultural market to one of the summer concert series or one of the holiday events. The Youth Commission was very receptive to collaborating on special events to increase youth attendance at Parks & Recreation events. They provided many ideas, which the subcommittee will be reviewing and sharing with the Commission at an upcoming meeting.

Commissioner Forte made a motion, seconded by Commissioner Chu to remove the word commission in the term "Parks &
Recreation Commission" as follows for Work Plan Goal D 1) Explore and partner with at least one other City commission to build on/expand at least one existing Parks & Recreation event by adding one extra element for patrons to interact with during the event.

Aye: Vice Chair Caldwell, Commissioner Chu, Commissioner Forte, Commissioner Hai, and Commissioner Ricketts
5 -
Excused: 1 - Chair Cox
Abstained: 1 - Commissioner Field
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Parks & Recreation Commission Meeting Minutes 11/15/2022

STAFF REPORT
Deputy Director Seale provided and update on Warburton Park Playground Rehabilitation Project and Henry Schmidt Park Playground Rehabilitation Project which will be coming to the Commission in the new year to initiate community input in developing the master plan and schematic design for both parks. The forensic engineering study for the International Swim Center Request for Proposal (RFP) in light of its failed infrastructure is expected to commence in early 2023. The construction phase for the City Plaza Park Gazebo Project is expected to start in late November. The Westwood Oaks Park Playground Rehabilitation Project is at 100% PS&E and is undergoing final interdepartmental review ahead of the project going out to bid. He encouraged the public and commissioners to visit the Parks Projects webpage to keep up to date on all major park projects. The Mary Gomez Park pool is down due to the plastering of the pool dislodging as a result of its aged infrastructure and extensive use. The Department continues to work on addressing this issue and is seeking professional input in considering re-plastering of the pool surface.

Manager Castro provided the Recreation Division update to the Commission. Staff attended the California Parks & Recreation Society Mini Conference in early November for professional development.The Senior Center natatorium is open for four days per week for indoor aquatic activities, and drop in swimming, along with exercise classes. She encouraged commissioners to attend and to be on stage for the Holiday Tree Lighting Event in Central Park on Friday December 2, which will honor the late former Fire Chief Bill Kelly. The Community Recreation Center, Youth Activity Center and Teen Center will be closed for budgetary reasons. Cultural activities are being planned for next year particularly after Commissioner Forte attended meetings with sister Parks & Recreation commissions regarding collaboration in planning events.

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COMMISSIONERS REPORT
Commissioner Chu: She noted that Henry Schmidt Park has important amenities such as the EV charging stations in the off-street parking lot and that the City has several parks with EV charging stations. She visited Harris Lass House and found that it has a beautiful garden, which has potential for recreation programs.

Commissioner Hai: Visited Earl Carmichael Park and walked through Westwood Oaks Park.

Commissioner Field: Received input from a park patron regarding how well Machado Park playground was rehabilitated, and complemented city staff on the success of the project. He has been visiting Maywood Park regularly.

Commissioner Forte: Visited and worked out at Henry Schmidt Park. He attended the Cultural Commission and the Youth Commission meetings and spoke about collaborating with each commission on planning special events.

Commissioner Ricketts: She has been working closely with Commissioner Forte in developing strategies on the work plan goals and working with other commissions on special events. She's been continually visiting Henry Schmidt Park and is looking forward to future improvements there.

Vice Chair Caldwell: He has been enjoying visiting Maywood Park and keeping the park clean particularly after usage of the park by park patrons.

ADJOURNMENT
Commissioner Chu made a motion, seconded by Commissioner Forte to adjourn the meeting until the next Parks & Recreation Commission meeting at 7:00 PM on January 17, 2023.

Aye: Vice Chair Caldwell, Commissioner Chu, Commissioner Field , Commissioner Forte, Commissioner Hai, and Commissioner Ricketts 6 -
Excused: 1 - Chair Cox

MEETING DISCLOSURES
City of Santa Clara Page 7 Printed on 01/18/2023
Parks & Recreation Commission Meeting Minutes 11/15/2022 The time limit within which to commence any lawsuit or legal challenge to any quasi-adjudicative decision made by the City is governed by Section 1094.6 of the Code of Civil Procedure, unless a shorter limitation period is specified by any other provision. Under Section 1094.6, any lawsuit or legal challenge to any quasi-adjudicative decision made by the City must be filed no later than the 90th day following the date on which such decision becomes final. Any lawsuit or legal challenge, which is not filed within that 90-day period, will be barred. If a person wishes to challenge the nature of the above section in court, they may be limited to raising only those issues they or someone else raised at the meeting described in this notice, or in written correspondence delivered to the City of Santa Clara, at or prior to the meeting. In addition, judicial challenge may be limited or barred where the interested party has not sought and exhausted all available administrative remedies.

If a member of the public submits a speaker card for any agenda items, their name will appear in the Minutes. If no speaker card is submitted, the Minutes will reflect "Public Speaker."
In accordance with the requirements of Title II of the Americans with Disabilities Act of 1990 ("ADA"), the City of Santa Clara will not discriminate against qualified individuals with disabilities on the basis of disability in its services, programs, or activities, and will ensure that all existing facilities will be made accessible to the maximum extent feasible. The City of Santa Clara will generally, upon request, provide appropriate aids and services leading to effective communication for qualified persons with disabilities including those with speech, hearing, or vision impairments so they can participate equally in the City’s programs, services, and activities. The City of Santa Clara will make all reasonable modifications to policies and programs to ensure that people with disabilities have an equal opportunity to enjoy all of its programs, services, and activities.

Agendas and other written materials distributed during a public meeting that are public record will be made available by the City in an appropriate alternative format.

Contact the City Clerk’s Office at 1 408-615-2220 with your request for an alternative format copy of the agenda or other written materials.

City of Santa Clara Page 8 Printed on 01/18/2023
City of Santa Clara
Meeting Minutes
Senior Advisory Commission
Draft
11/28/2022 10:00 AM Virtual Meeting
Pursuant to California Government Code Section 54953(e) and City of Santa Clara Resolution 22-9150, the Senior Advisory Commission meeting will be held by teleconference only. No physical location will be available for this meeting; however, the City of Santa Clara continues to have methods for the public to participate remotely:

Join from a PC, Mac, iPad, iPhone or Android device:

Please click this URL to join: https://santaclaraca.zoom.us/j/97590069803 Or join by phone: Dial 1-669-900-6833
Webinar ID: 975 9006 9803
International numbers available: https://santaclaraca.zoom.us/u/abuhH0eDsx

CALL TO ORDER AND ROLL CALL
The regular meeting was called to order by Vice Chair McCauley at 10:04 a.m.

Commissioner Edmund Drozek, Commissioner Tom Freitas,
Commissioner Judy Hubbard, Vice Chair Grant L. McCauley, Chair Nancy Toledo, and Commissioner Rick Andrews
Present 6 -
Absent 1 - Commissioner Veena Sterling

CONSENT CALENDAR

1.A 22-1379 Senior Advisory Commission Minutes of October 24, 2022 Recommendation: Approve the Senior Advisory Commission Minutes of October 24, 2022 A motion was made by Commissioner Hubbard, seconded by Vice Chair McCauley to approve the minutes of October 24, 2022

Aye: Commissioner Drozek, Commissioner Freitas, Commissioner Hubbard, Vice Chair McCauley, Chair Toledo, and Commissioner Andrews
6 -

Absent: 1 - Commissioner Sterling
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PUBLIC PRESENTATIONS
None

GENERAL BUSINESS
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2. 22-1380 Senior Advisory Commission Work Plan & Goals for FY2022/23 Each sub-committee will provided an update to the Senior Advisory Commission for discussion on the efforts and progress toward accomplishing the FY2022/23 Work Plan & Goals.

1. Advocate for Affordable and Convenient Housing -
Commissioners Hubbard & Freitas
Goal 1.a. Provide a report from the October Housing Commission meeting - No report as there was no meeting held.

Goal 1.b. Provide an update on the (2) presentations at the Senior Center (November and April) and provide one article for the Senior Center newsletter (February) - There was no update on the November presentation. Commissioner Hubbard shared that she called eleven (11) affordable housing sites listed on the Community Development Department website. Commissioner Freitas mentioned that he would like Adam Marcus from the Community Development Department to speak at the February Senior Advisory Commission meeting.

2. Encourage and Promote the use of Outdoor Spaces and
Buildings - Commissioners Freitas & Sterling
Goal 2.a. Report on current public design phase discussions of new park facilities and spaces as well as information from Parks & Recreation Commission meetings related to development that may enhance outdoor recreation for older adults - No report.

Goal 2.b. Update on progress and plans for the February billiard tournament and April bean bag toss activities at the Senior Center - Commissioner Freitas & Sterling met with Coordinator Carter at the Senior Center to discuss the different aspects of the billiard tournament and have begun talking to patrons at the Senior Center and spread the word about the tournament. The hope is to hold the tournament on February

7. 3. Advocate for Affordable, Convenient, and Safe Transportation and Streets -
Goal 3.a. Report on progress of planning phases of the VIA Shuttle - Commissioners Hubbard & Toledo - No report. Commissioner Hubbard will email Council Member Chahal to find out any updates and who might be a good contact in the City of Cupertino.

Goal 3.b. Report on the last Bicycle & Pedestrian Advisory Committee meeting - Commissioners Drozek & Freitas - Commissioner Drozek reported that he attended the October Bicycle/Pedestrian Advisory Commission and shared that a decision was reached regarding the Monroe bicycle/pedestrian crossing at the community garden and it has been determined that the crossing is not sufficient. The City is considering City of Santa Clara Page 3 Printed on 01/23/2023
Senior Advisory Commission Meeting Minutes 11/28/2022
adding a high awareness (H.A.W.K) light.

4. Develop Opportunities to Promote Health, Wellness, and Nutrition - Commissioner Hubbard
Goal 4.a. Report on the March presentation update for the Alzheimer’s and Dementia at the Senior Center - No report.

5. Provide Access to Community Resources and Information - Goal 5.a. Report from the last City ADA Committee meeting - Commissioner Hubbard - No report as there was no meeting held.

Goal 5.b. Update on the progress and plans for the Health & Wellness Fair - Commissioners McCauley, Toledo, & Hubbard - Commissioner McCauley shared that the time has been adjusted to start at 11 a.m and end at 2 p.m. The Kaiser grant application was submitted. Good Neighbor Letters will be disseminated on May 15. Commissioners were asked to save the date and asked that everyone be in attendance.

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STAFF REPORT
Recreation Manager Castro - provided the following updates:
- There will be a Brown Act Training at the January Senior Advisory Commission meeting.
- The Holiday Tree Lighting event will be held on Friday, December 2 rain or shine. The honorary Tree Lighter is the Kelly Family recognizing the late Chief Bill Kelly.
- The Winter Activity Guide will be released on December 2. - At the January Parks and Recreation Commission meeting, the group saw initiation for community outreach on park designs for new a inventory of parks in the City. Manager Castro forwarded the email to Senior Advisory Commissioners if they want to attend any of the community meetings.
- The Clerk's Office is working with the Attorney's Office to aim for commission meetings to be in person for the February Senior Advisory Commission Meeting.

Recreation Supervisor Herb - provided the following updates:
- The Stop the Bleed presentation was held in November was provided by Santa Clara Valley Medical Center and was well attended and very informative.
- To Get Aquatinted Ballroom Dance Program will return in January. - Clear Captions table in the Senior Center lobby on December 1 from 10:30 a.m. - 12 p.m.
- Senior Center Holiday Giving Tree will be in the lobby for those interested in helping out those in need. Gift deadline is December 14 at 3 p.m. - December fitness classes offered through December 16. - Senior Center closed December 19 - January 2, but the Senior Nutrition Program will continue to take place.
- No Senior Advisory Commission meeting in December.

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COMMISSIONERS REPORT
Commissioner Drozek shared that he attended the Veteran's Memorial Celebration which was very nice. He was a bit disappointed in the turnout.

He also commended the Senior Center on the Stop the Bleed Presentation that was very informative. He also shared that his wife is enjoying the ceramics and silk scarf painting classes at the Senior Center.

Commissioner Freitas shared stats on pedestrian & bicycle fatalities from the Governor's Highway Association.

Commissioner McCauley shared that he was excited about the Brown Act Training, and voiced his appreciation about the Clear Captions Phone presentation which led him to receive a Clear Captions Phone. He also shared that he attended the Downtown Precise Planning meeting at Mission Library voicing his disappointment that it looks like a downtown San Jose and it didn't appear to have much green space.

Commissioner Toledo welcomed Commissioner Andrews to the Commission.

Commissioner Andrews introduced himself to the Commission and shared that he's interested in being a voice for the north side of Santa Clara as a resident of 28 years.

Commissioner Hubbard shared that she has been utilizing the Drop-in Swim hours at the Senior Center and is really enjoying it.

ADJOURNMENT
A motion was made by Commissioner Hubbard, seconded by Chair Toledo that the meeting be adjourned at11:35 a.m.

Aye: Commissioner Drozek, Commissioner Hubbard, Vice Chair McCauley, Chair Toledo, and Commissioner Andrews
5 -

Absent: 1 - Commissioner Sterling
Abstained: 1 - Commissioner Freitas

MEETING DISCLOSURES
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Senior Advisory Commission Meeting Minutes 11/28/2022
The time limit within which to commence any lawsuit or legal challenge to any quasi-adjudicative decision made by the City is governed by Section 1094.6 of the Code of Civil Procedure, unless a shorter limitation period is specified by any other provision. Under Section 1094.6, any lawsuit or legal challenge to any quasi-adjudicative decision made by the City must be filed no later than the 90th day following the date on which such decision becomes final. Any lawsuit or legal challenge, which is not filed within that 90-day period, will be barred. If a person wishes to challenge the nature of the above section in court, they may be limited to raising only those issues they or someone else raised at the meeting described in this notice, or in written correspondence delivered to the City of Santa Clara, at or prior to the meeting. In addition, judicial challenge may be limited or barred where the interested party has not sought and exhausted all available administrative remedies.

If a member of the public submits a speaker card for any agenda items, their name will appear in the Minutes. If no speaker card is submitted, the Minutes will reflect "Public Speaker."
In accordance with the requirements of Title II of the Americans with Disabilities Act of 1990 ("ADA"), the City of Santa Clara will not discriminate against qualified individuals with disabilities on the basis of disability in its services, programs, or activities, and will ensure that all existing facilities will be made accessible to the maximum extent feasible. The City of Santa Clara will generally, upon request, provide appropriate aids and services leading to effective communication for qualified persons with disabilities including those with speech, hearing, or vision impairments so they can participate equally in the City’s programs, services, and activities. The City of Santa Clara will make all reasonable modifications to policies and programs to ensure that people with disabilities have an equal opportunity to enjoy all of its programs, services, and activities.

Agendas and other written materials distributed during a public meeting that are public record will be made available by the City in an appropriate alternative format.

Contact the City Clerk’s Office at 1 408-615-2220 with your request for an alternative format copy of the agenda or other written materials.

City of Santa Clara Page 7 Printed on 01/23/2023
City of Santa Clara
Agenda Report
1500 Warburton Avenue
Santa Clara, CA 95050
santaclaraca.gov
@SantaClaraCity
23-54 Agenda Date: 1/31/2023

REPORT TO COUNCIL

SUBJECT
Action on Monthly Financial Status and Investment Reports for November 2022 and Approve the Related Budget Amendments

COUNCIL PILLAR
Enhance Community Engagement and Transparency

BACKGROUND
In compliance with the Charter of the City of Santa Clara and the adopted Investment Policy, the monthly financial report and monthly investment report for November 2022 are submitted for your information. The financial review as of November 30, 2022 provide a year-to-date financial update to the City Council for the current fiscal year. The analysis of the revenues collected and all expenditures measures the level of adherence to the annual budget and allows the City to monitor and project revenues and expenditures throughout the year.

The Adopted Budget incorporates the estimated revenues and planned expenditures for all funds.

The attached Financial Status Report provides the budget to actual revenue and expenditure summaries for the General Fund, Special Revenue Funds and Enterprise Operating Funds, as well as expenditure summary for Capital Improvement Funds and Fund Reserve Balances. Any significant variances are explained in the report.

In accordance with City Council Policy 051 - Donations to the City, included in this report is a monthly activity and annual summary of donations received by department. Although the requirement of the policy is to report quarterly, in its ongoing effort to streamline reporting, the City includes this information monthly in the financial status report.

DISCUSSION
Monthly Financial Status Report (Attachment 1)
The attached report summarizes the City’s financial performances as of November 30, 2022.

Financial analysis is provided for the General Fund, select Special Revenue Funds, Enterprise Operating Funds, and Capital Improvement Funds.

Attachment 1 shows that General Fund revenues (excluding transfers) were tracking within estimated levels at 30.7% through November 2022.

As shown in Attachment 1, General Fund departmental expenditures were at 38.3% of budget through November 2022. Several cost-control measures that were implemented in FY 2019/20 remain in place to generate expenditure savings. These measures include a hiring freeze and City of Santa Clara Page 1 of 4 Printed on 1/26/2023
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23-54 Agenda Date: 1/31/2023
controls around overtime, as-needed staff, marketing, travel, technology and vehicle purchases. With these measures, expenditures are expected to end the year below budget.

As shown in Attachment 1, total revenues for Enterprise Funds (Electric, Water, Sewer, Cemetery, Solid Waste, and Water Recycling) were at 37.1% of the budget through November 2022, while total expenses were at 37.2% of the budget.

In the month of November, the City received $648 in donations, bringing total donations for FY 2022/23 to $32,647.

Economic indicators are mixed, and there is a tremendous amount of uncertainty. Given this level of uncertainty, the December 2022 UCLA Forecast presented a two-scenario economic forecast. “One scenario is no recession, where economic growth is “just right”, inflation ebbs, labor market constraints loosen, and the Federal Reserve takes a less aggressive approach to monetary policy tightening. The second scenario is a recession, where inflation would have continued to run hot if not for aggressive Federal Reserve action. In this scenario, the Federal Reserve forces a recession and accepts an economic contraction and higher unemployment to combat inflation. Importantly, the difference in the two scenarios is the exogenous decision of the Federal Reserve in setting monetary policy.” The U.S. Chamber of Commerce Chief Economists Committee projects a mild and short recession in mid-2023 due to a reduction in consumer and business spending resulting from rising interest rates. In addition, consumers are expected to exhaust the historic savings built up during the COVID-19 pandemic and would no longer have that source of money to keep spending at a pace with inflation. Consumers are slightly more optimistic about current economic conditions. The Conference Board Consumer Confidence Index increased following declines in both November and October 2022.

On a national level, the unemployment rate slightly decreased to 3.5% in December 2022 from 3.7% in November 2022. This rate was well below the record setting high of 14.7% in April 2020, and consistent with the pre-pandemic unemployment rate of 3.5%. In December, the number of unemployed persons dropped to 5.7 million from 6.0 million in November. This unemployment figure matched the pre-pandemic level of 5.7 million. In the third quarter 2022 third estimate, the Gross Domestic Product (GDP) increased by 3.2% as a result of an acceleration in nonresidential fixed investment, increases in exports and consumer spending as well as upturns in State and local government spending.

At the State level, the UCLA December 2022 Forecast for California includes soft-landing and recession scenarios given the current economic uncertainly. In both scenarios, a milder impact is expected for the California economy.

After the State’s largest increase in the unemployment rate in April 2020, the California unemployment rate increased slightly from 4.0% in October 2022 to 4.1% in November 2022. It is important to note that the September 2022 unemployment rate of 3.8% was the lowest on record for this data set that dates back to 1976. The November 2022 rate is lower compared to the 5.8% rate in November 2021. California has now regained all of the 2.76 million nonfarm jobs lost due to COVID19 in March and April 2020. The State has also now outpaced the country as a whole in terms of job growth by 0.7%. The unadjusted unemployment rate in the San Jose-Sunnyvale-Santa Clara Metropolitan Statistical Area (MSA) increased slightly from 2.2% in October 2022 to 2.4% in November 2022.

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Staff will continue to closely monitor the General Fund revenues and the City’s overall financial performance as the fiscal year progresses.

Monthly Investment Report (Attachment 2)
All securities held by the City of Santa Clara as of November 30, 2022, were in compliance with the City’s Investment Policy Statement regarding current market strategy and long-term goals and objectives. All securities held are rated “A” or higher by two nationally recognized rating agencies.

There is adequate cash flow and maturity of investments to meet the City’s needs for the next six months.

The City’s investment strategy for November 2022 was to invest funds not required to meet current obligations in securities listed in the prevailing Investment Policy Statement, with maturities not to exceed five years form the date of purchase. This strategy ensures safety of the City’s funds, provides liquidity to meet the City’s cash needs, and with a reasonable portfolio return of 1.71% in November.

ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(b)(4) in that it is a fiscal activity that does not involve any commitment to any specific project which may result in a potential significant impact on the environment.

FISCAL IMPACT
From time to time, adjustments to the budget are required to reflect new information, align budgets with actual revenues and expenses, and correct for inadvertent errors. Recommended budget amendments are detailed in Attachment 3. Actions are included to appropriate and set aside funding for potential litigation costs in the Sewer Utility Fund. Additionally, in the Streets and Highways Capital Fund, amendments are included to recognize funding from a settlement from the City of San Jose and establish a project for the Tasman Complete Streets Plan, in accordance with the settlement agreement.

COORDINATION
This report has been coordinated with the City Attorney’s Office.

RECOMMENDATION
Note and file the Monthly Financial Status and Investment Reports for November 2022 as presented and Approve the Related Budget Amendments (five affirmative Council votes required to appropriate additional revenue or for the use of unused balances).

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23-54 Agenda Date: 1/31/2023
Reviewed by: Kenn Lee, Director of Finance
Approved by: Rajeev Batra, City Manager

ATTACHMENTS

1. Monthly Financial Status Report November 2022

2. Monthly Investment Report November 2022

3. FY 2022/23 Budget Amendments
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_____________________________________________________________________

MONTHLY FINANCIAL STATUS REPORT
November 2022
City of
Santa Clara
The Center of What's Possible
1 City of Santa Clara
Financial Status Report as of November 30, 2022
This report summarizes the City’s financial performance for the month ended November 30, 2022.

Financial analysis for the report is provided for the General Fund, select Special Revenue Funds, Enterprise Operating Funds, and Capital Improvement Funds. Financial information included in this report is unaudited.

General Fund
The General Fund is the major operating fund for the City and includes multiple programs, services, and activities for the residents and businesses of the City. The adopted budget for operating revenues and expenditures for fiscal year 2022/23 was $272.4 million. The amended budget for revenues and expenditures was adjusted to $281.6 million to reflect various budget amendments approved by the City Council through November 2022.

General Fund revenues are currently tracking within estimated levels. Through November, departmental expenditures are tracking slightly below budget and this trend is expected to continue as departments continue to control expenditures through various cost control measures.

Chamber of Commerce projects a mild but short recession in 2023. The consensus of its Chief Economists Committee is that “the U.S. will experience a mild but short recession in the middle of 2023 caused by consumer and business spending falling because of rising interest rates. Further contributing to the downturn would be consumers finally exhausting historic saving built up during the COVID-19 pandemic, meaning they would no longer have that source of money to keep spending at a pace with inflation”.
2 The Conference Board Consumer Confidence Index increased in December after losing ground in both October and November. “Inflation expectations retreated in December to their lowest level since September 2021, with recent declines in gas prices a major impetus. Vacation intentions improved but plans to purchase homes and big-ticket appliances cooled further. This shift in consumers’ preference from big-ticket items to services will continue in 2023, as will headwinds from inflation and interest rate hikes.”3
1 UCLA Anderson Forecast, December 2022, Goldilocks or Bust: Will the Economy by “Just Right” or Will We have a Recession?
2 What to Expect for the Economy in 2023 | U.S. Chamber of Commerce (uschamber.com) 3 https://www.conference-board.org/topics/consumer-confidence 2 City of Santa Clara
Financial Status Report as of November 30, 2022
On a national level, the unemployment rate decreased slightly to 3.5% between November 2022 and December 2022. This rate was well below the record setting high of 14.7% in April 2020, and equal to the pre-pandemic unemployment rate of 3.5%. In December, the number of unemployed persons fell to

5.7 million from 6.0 million in November. This unemployment figure has reached the pre-pandemic level of 5.7 million.
4 In the third quarter 2022 third estimate, the Gross Domestic Product (GDP) increased by 3.2%, following a GDP decrease of 0.6% in the second quarter. The increase in the third quarter primarily reflected increases in exports, consumer spending, and State and local government spending. 5 4 https://www.bls.gov/news.release/pdf/empsit.pdf 5 https://www.bea.gov/sites/default/files/2022-12/tech3q22_3rd.pdf Chart 1. Unemployment rate, seasonally adjusted,
December 2019- December 2.022
Perceni

16.0 14.0

12.0 100

8.0 6.0
Chart 2. Nonfarm payroll employment, seasonally adjusted, December 2019 - December 2022
Th.ousands

4.0 ~,-----------'-"""94.e;~,;..~ ...
160,000
155,000
150,000
145,000
140,000
135,000
130,000

2.0 125,000
Dec-1, 9 Jun-20 Dec--20 Jun-21 Dec-21 Jun-22 Dec-22 Dec--1 9 Jun-20 Dec-20 Jun-21 Dec-21 Jun-22 Dec-22 Real GDP: Percent change from preceding quarter
40 30
20 10
0 -10
-20
-30
-40
Q4 Ql
2018
Q2 Q3
2019
U.S. Bureau of Economic Analysis
Q4 Ql Q2 Q3 Q4 Ql
2020
Q2 Q3
2021
Q4 Ql Q2 Q3
2022
Seasonally adjusted annual rates
3 City of Santa Clara
Financial Status Report as of November 30, 2022
The December 2022 UCLA Anderson Forecast projects strong GDP performance in the 4th quarter 2022 driven by consumption and business investment. After that point, the Forecast has differing projections based on the recession or no-recession scenarios as illustrated below. The real GDP gap between these scenarios totals $490 billion by the end of 2023 and $330 billion by 2024.

The December 2022 UCLA Forecast for California includes soft-landing and recession scenarios given the current economic uncertainly. In both scenarios, a milder impact is expected for the California economy. In the soft-landing scenario, California continues to grow at a faster rate than the US, led by more construction, ample state government rainy day funds, and increased demand for defense goods as well as labor saving equipment and software. In the recession scenario, the California economy declines but by less than the US.6

The State and local employment levels remain strong. After the State’s largest increase in the unemployment rate in April 2020, the California unemployment rate increased slightly from 4.0% in October 2022 to 4.1% in November 2022. The November 2022 rate is lower compared to the 5.8% rate in November 2021. California has now regained all of the 2.76 million nonfarm jobs lost due to COVID19 in March and April 2020, and has outpaced the country’s job growth as a whole by 0.7%. 7 The unadjusted unemployment rate in the San José-Sunnyvale-Santa Clara Metropolitan Statistical Area (MSA) slightly increased to 2.4% in November 2022, from a revised 2.2% in October 2022, but is below the November 2021 level of 3.2% and the February 2020 pre-pandemic level of 2.6%. Between 6 UCLA Anderson Forecast, A Tale of Two Scenarios: The California Report, December 2022 7 https://edd.ca.gov/en/about_edd/news_releases_and_announcements/unemployment-november-2022/ Rea l GOP Levels, US$ Trillions, Chained 2012 Prices, Seasonally Adjusted Annual Rates US$ Trillions

21.0 20.9

20.8 20.7

20.6 20.5

20.4 20.3

20.2 20.1

20.0 19.!12
ecast ➔

19.9<1

20.90 0 .0 =-----------+-------------'----------- Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2022 2023 2024
Source_- UCLA Anderson Forecast and US. Bureau of Economic Analysis No-Recession
Recession
4 City of Santa Clara
Financial Status Report as of November 30, 2022
November 2021 and November 2022, employment in this region increased by 54,100 jobs, or 4.7%.8 The largest increases were in professional and business services (up 13,300 jobs), leisure and hospitality (up 11,400 jobs), and private educational and health services (up 10,600 jobs).

Staff will continue to closely monitor the economic environment and the City’s financial performance and provide updates through the Monthly Financial Reports. 8 https://labormarketinfo.edd.ca.gov/file/lfmonth/sjos$pds.pdf 5 City of Santa Clara
Financial Status Report as of November 30, 2022
General Fund Revenues
As of November 30, 2022, $73.3 million or 30.7% of the General Fund estimated revenue (excluding transfers) was received. Transfers and use of reserves of $42.6 million have occurred as budgeted.

Revenue collections are tracking within estimated levels and are higher when compared to collections last fiscal year.

Adopted Budget
Amended
Budget
Actual Through
11/30/2022
Percentage
Received
Actual Through
11/30/2021
$
Change From
Prior Year
Percentage
Change
TAXES
Sales Tax $ 60,173,000 $ 60,173,000 $ 16,324,246 27.13% $ 14,140,585 $ 2,183,661 15.44% Property Tax 75,261,000 75,261,000 13,693,270 18.19% 10,626,422 3,066,848 28.86% Transient Occupancy Tax 12,600,000 12,600,000 5,561,694 44.14% 2,225,952 3,335,742 149.86% Other Taxes 6,260,000 6,260,000 1,788,958 28.58% 1,471,956 317,002 21.54% Total Taxes 154,294,000 154,294,000 37,368,168 24.22% 28,464,915 8,903,253 31.28%

LICENSES & PERMITS
Business Licenses 900,000 900,000 357,795 39.76% 366,699 (8,904) -2.43% Fire Operation Permits 2,100,000 2,358,000 792,866 33.62% 838,859 (45,993) -5.48% Miscellaneous Permits 72,000 72,000 32,532 45.18% 27,309 5,223 19.12% Total Licenses & Permits 3,072,000 3,330,000 1,183,193 35.53% 1,232,867 (49,674) -4.03% FINES & PENALTIES 1,465,000 1,615,000 105,604 6.54% 141,737 (36,133) -25.49% INTERGOVERNMENTAL 310,000 310,000 170,066 54.86% 133,649 36,417 27.25% CHARGES FOR SERVICES 31,258,098 31,258,098 13,147,444 42.06% 11,849,960 1,297,484 10.95% SILICON VALLEY POWER TRANSFER 26,170,000 26,170,000 11,934,953 45.61% 10,738,907 1,196,046 11.14%

USE OF MONEY & PROPERTY
Interest 2,532,000 2,532,000 378,009 14.93% 214,768 163,241 76.01% Rent 10,584,266 10,584,266 4,307,466 40.70% 3,928,228 379,238 9.65% Total Use of Money & Property 13,116,266 13,116,266 4,685,475 35.72% 4,142,996 542,479 13.09% MISCELLANEOUS REVENUES 150,000 189,099 1,859,668 983.44% 300,227 1,559,441 519.42%

LAND PROCEED - - - N/A - - N/A

OTHER FINANCING SOURCES
Operating Transfer In - Storm Drain 1,454,000 1,454,000 1,454,000 100.00% 1,454,000 - 0.00% Operating Transfer In - Reserves 25,812,244 34,325,079 34,325,079 100.00% 32,456,888 1,868,191 5.76% Operating Transfer In - Fund Balances(2) 4,484,726 4,484,726 4,484,726 100.00% 4,817,658 (332,933) -6.91% Operating Transfer In - Miscellaneous 2,127,374 2,370,374 2,370,374 100.00% 5,427,399 (3,057,025) -56.33% Total Other Financing Sources 33,878,344 42,634,179 42,634,179 100.00% 44,155,945 (1,521,767) -3.45%

STADIUM OPERATION
Charges for Services 7,889,147 7,889,147 2,293,120 29.07% 1,356,594 936,526 69.04% Rent and Licensing 752,500 752,500 556,621 73.97% 161,511 395,110 244.63% Total Stadium Operation 8,641,647 8,641,647 2,849,741 32.98% 1,518,105 1,331,636 87.72% TOTAL GENERAL FUND $ 272,355,355 $ 281,558,289 $ 115,938,491 41.18% $ 102,679,309 $ 13,259,182 12.91% (1) The Operating Transfer In - Fund Balances includes the carryover encumbrances of open purchase orders as of June 30, 2022 and mid year budget amendment from reserves.

Function

CITY OF SANTA CLARA

GENERAL FUND

REVENUES OVERVIEW AND COMPARISON BY TYPE
FISCAL YEAR 2022/23 PY REVENUE COMPARISON
6 City of Santa Clara
Financial Status Report as of November 30, 2022
General Fund Revenues
Sales Tax: The City of Santa Clara sales tax rate is 9.0%, of which the City receives 1.0%. As of November 30, 2022, approximately $16.3 million has been collected. This reflects an increase of $2.2 million when compared to collections through the same period last fiscal year. After a decline of 8.6% percent in the second quarter of calendar year 2022, sales tax receipts increased 15.7% in the third quarter when compared to the same quarter last year. The third quarter 2022 experienced growth in all sectors as follows: Transportation (up 31.2%), Food Products (up 20.7%), Construction (up 17.3%), General Retail (up 10.0%), and Business to Business (up 3.5%). Growth of 3% is needed in the remaining three quarters of Fiscal Year 2022/23 to meet the budgeted estimate of $59.4 million.

Internet sales represents a sizeable amount of the City’s sales tax revenue. The County pool, which includes internet sales, accounts for approximately 20% of the sales tax the City receives.

Property Tax: Through November, 18.2% of the property tax budgeted estimate has been received.

The majority of property tax revenue is collected in February and April each year. Based on information from the County of Santa Clara, property tax receipts are projected to end the year above the Adopted Budget estimate of $75.3 million.

Transient Occupancy Tax (TOT): TOT is calculated as a percentage of City hotel/motel room charges. The City’s TOT rate is 11.5%. Through November 30, 2022, approximately $5.6 million has been received, which is significantly higher than receipts through the same period last fiscal year of $2.2 million. As businesses continue to recover from the COVID-19 impacts, it is anticipated that TOT will increase compared to last fiscal year. Based on current collection trends, TOT receipts are expected to exceed the budgeted estimate of $12.6 million.

Other Taxes: Includes franchise tax and documentary transfer tax. The City has collected $1.8 million through November, which higher than prior year collection levels. Receipts through November reflect higher collections in the franchise tax category that is partially offset by lower receipts in the documentary transfer tax category. Based on current collection trends, Other Taxes collections are projected to exceed the budgeted estimate of $6.3 million.

Licenses & Permits: Includes business licenses, fire operation permits, and miscellaneous permits and fees. Effective FY 2021/22, building, electric, plumbing, and mechanical permits are budgeted in the Building Development Services Fund, which is reflected in the Special Revenue section of this report. Licenses and permits revenue collections are tracking slightly below par with receipts totaling $1.2 million, or 35.5% of the budget of $3.3 million.

Fines & Penalties: Includes vehicle, parking, court fines, and miscellaneous penalty fines. The revenue of approximately $0.1 million collected in this category through November is tracking to end the year well below the budgeted estimate of $1.6 million largely due to the waiving of late fees implemented in response to COVID-19.

Intergovernmental: Includes motor vehicle fees, state homeowner tax relief, state mandated reimbursement and redistribution of land sale proceeds and ground leases from the Successor Agency. 7 City of Santa Clara
Financial Status Report as of November 30, 2022
Through November 30, 2022, $0.2 million has been received, which is consistent with the prior year collection level. However, this category reflects a drop when compared to last month’s financial report as a result of a reclassification of a $1.5 million settlement that has been more appropriately recorded in the Streets and Highways Capital Fund. The settlement amount is to be used for a new capital improvement program project which is included in the recommended budget actions in Attachment 3.

Charges for Services: Includes various plan check and zoning-related fees, engineering fees, administrative fees, and community service revenue from various recreational activities. Through November 30, 2022, collections are tracking within budget at $13.1 million, or 42% of the budget. This reflects an 11% increase compared to last year’s collections through the same period of $11.8 million.

This increase is a result of higher collections for planning and zoning fees, technology fee, engineering fees, and Fire EMS fees.

Silicon Valley Power Transfer: In accordance with the City’s charter, Silicon Valley Power pays 5.0% of gross revenues to the General Fund. As of November 30, 2022, $11.9 million has been received.

Transfers throughout the year are based on the budgeted estimate and will be trued up at the end of the fiscal year based on actual performance.

Use of Money & Property: Includes realized investment income and rental income. Interest income and rent revenue collections totaled $4.7 million, or 35.7% of the budget. These collections are higher than collections through last fiscal year of $4.1 million. Collections are expected to meet or exceed the budgeted estimate of $13.1 million.

Miscellaneous Revenues: Includes developer fees, donations, damage recovery, sale of surplus, and one-time miscellaneous revenues. Through November 30, 2022, collections of $1.9 million are higher than collections through the same period last fiscal year of $0.3 million. This increase is primarily attributable to the settlement between the City, the Santa Clara Stadium Authority, and the Forty-Niners SC Stadium Company LLC and Forty Niners Stadium Management Company LLC (collectively, the Forty-Niners).

Stadium Operation: As of November 30, 2022, charges for services collected through the Stadium totaled $2.8 million, which is on par for this time of year. This is also higher than collections through the same period last year resulting from the reopening of Stadium for events. 8 City of Santa Clara
Financial Status Report as of November 30, 2022
General Fund Expenditures
As of November 30, 2022, $116.5 million or 41.4% of the General Fund operating budget had been expended. This is significantly lower than last fiscal year due to lower transfers to other funds; last year included a one-time transfer of the Building Inspection Reserve to the new Building Development Services Fund as well as higher transfers to Capital Funds. Overall, expenditures in the General Fund are within budgeted levels through November. Departmental expenditures totaled $100.6 million, or

38.3% of the budget, which is below the par level of 41.7% of the budget. Several cost-control measures that were implemented in FY 2019/20 remain in place to generate expenditure savings.

These measures include a hiring freeze and controls around overtime, as-needed staff, marketing, travel, technology and vehicle purchases. With these measures, expenditures are expected to end the year below budget.

Adopted Budget
Amended
Budget
Actual Through
11/30/2022
Percentage
Used
Actual Through
11/30/2021
$
Change From
Prior Year
Percentage
Change

GENERAL GOVERNMENT
Non-Departmental $ 7,514,334 $ 7,647,394 $ 2,013,239 26.33% $ 1,313,812 $ 699,427 53.24% City Council 861,105 862,396 266,677 30.92% 336,175 (69,498) -20.67% City Clerk 2,076,112 2,093,661 757,746 36.19% 606,680 151,066 24.90% City Manager 6,085,321 6,292,428 1,821,516 28.95% 1,999,737 (178,221) -8.91% City Attorney 3,202,735 3,690,974 1,368,946 37.09% 976,791 392,155 40.15% Human Resources 4,508,710 4,828,451 1,468,880 30.42% 1,437,548 31,332 2.18% Finance 19,045,131 20,272,300 7,016,819 34.61% 6,296,892 719,927 11.43% Total General Government 43,293,448 45,687,604 14,713,823 32.21% 12,967,635 1,746,188 13.47% PUBLIC WORKS 24,021,840 25,092,840 9,133,284 36.40% 9,061,825 71,459 0.79% COMMUNITY DEVELOPMENT 5,398,007 5,665,420 1,847,449 32.61% 1,896,401 (48,952) -2.58% PARKS AND RECREATION 21,695,302 22,287,115 8,681,141 38.95% 7,339,086 1,342,055 18.29%

PUBLIC SAFETY
Fire 62,298,852 65,944,826 28,080,867 42.58% 25,794,026 2,286,841 8.87% Police 84,615,023 85,427,549 33,810,147 39.58% 30,830,143 2,980,004 9.67% Total Public Safety 146,913,875 151,372,375 61,891,014 40.89% 56,624,169 5,266,845 9.30% LIBRARY 11,889,451 12,277,870 4,343,709 35.38% 3,424,403 919,306 26.85% DEPARTMENTAL TOTAL 253,211,923 262,383,224 100,610,420 38.34% 91,313,519 9,296,901 10.18%

OTHER FINANCING USES
Operating Transfer Out - Miscellaneous 38,809 38,809 38,809 100.00% 23,250,142 (23,211,333) -99.83% Operating Transfer Out - Debt Services 1,402,275 1,402,275 1,402,275 100.00% 2,501,439 (1,099,164) -43.94% Operating Transfer Out - Maintenance Dtrct 842,700 842,700 842,700 100.00% 771,349 71,351 9.25% Operating Transfer Out - Cemetery 870,000 870,000 870,000 100.00% 850,000 20,000 2.35% Operating Transfer Out - CIP 8,625,501 8,641,613 8,641,613 100.00% 11,773,925 (3,132,312) -26.60% Operating Transfer Out - Reserves - - - N/A 3,309,009 (3,309,009) -100.00% Total Other Financing Uses 11,779,285 11,795,397 11,795,397 100.00% 42,455,864 (30,660,467) -72.22% STADIUM OPERATION 7,364,147 7,379,668 4,057,640 54.98% 2,871,639 1,186,001 41.30% TOTAL GENERAL FUND $ 272,355,355 $ 281,558,289 $ 116,463,457 41.36% $ 136,641,022 $ (20,177,565) -14.77% Function

CITY OF SANTA CLARA

GENERAL FUND

EXPENDITURES OVERVIEW AND COMPARISON BY FUNCTION
FISCAL YEAR 2022/23 PY EXPENDITURES COMPARISON
9 City of Santa Clara
Financial Status Report as of November 30, 2022
General Fund Expenditures
Below is an explanation of certain budget to actual expenditure variances by program.

Non-Departmental: Includes expenditures that are not attributable to a single department, but a function of the City in general. As of November 30, 2022, expenditures totaled $2.0 million, or 26.3% of the budget. These expenditures are below the par level of 41.7% but are higher than the prior year levels, primarily as a result of higher expenditures in the contractual services as well as salaries and benefits categories.

City Attorney: Through November, actual expenditures totaled approximately $1.4 million, which is below expected levels at 37.1% of the budget. Spending is 40% above the total expenditures through the same time last fiscal year due to higher contractual legal services costs and salaries and benefits.

City Clerk: Through November, actual expenditures were tracking below budget at $0.8 million or approximately 36.2% of the budget. This reflects a 25% increase in spending compared to prior year spend levels. This is a result of one-time special election costs as well as Granicus costs that are paid every other year.

City Council: Through November, expenditures were at 30.9% of budget, which is below par.

Compared to the same period through last fiscal year, this reflects a spending decrease of approximately 21%, which is primarily the result of savings due to vacancies within the department.

City Manager: Expenditures through November totaled $1.8 million, or 29% of the budget, which is below par for this time of the year. Expenditures are also 9% lower compared with the spending level through the same period last fiscal year. This decrease reflects lower spending in contractual services and salaries and benefits; however, this is offset by higher spending in the as-needed category.

Community Development Department: This department consists of three divisions: Planning, Building, and Housing and Community Services. The Building division of this department is reflected in the Building Development Services Fund, which falls under the special revenue section of this report.

Through November, departmental expenditures for the Planning and Housing and Community Services divisions totaled $1.8 million, or 32.6%, which is below the par level of 41.7%. Expenditures were slightly below the spending through the same period last fiscal year due to higher spending in the salaries and benefits categories.

Finance Department: Through November, the Department’s expenditures totaled $7.0 million, or

34.6% of the budget, which is below par. This expenditure level was approximately 11.4% higher than expenditure levels through the same period last year. This is a result of higher expenditures primarily in the salaries and benefits categories, which is partially offset by lower spending in the contractual services category.

Fire Department: Through November, expenditures totaled $28.1 million, or 42.6% of the budget, which is slightly above par. These expenditures reflect a 9% increase from expenditures through the same period last fiscal year. This increase in spending reflects higher costs in the salaries and benefits 10 City of Santa Clara
Financial Status Report as of November 30, 2022
as well as contractual services and capital outlay categories. Overtime expenditures are tracking at

70.6% of the budget, which is above par for this time of year. While this overtime figure is high, it is important to note that overtime is used to backfill for vacant positions and the vacancy savings offset a portion of the overtime costs. In addition, overtime costs are higher due to mutual aid efforts that will be reimbursed. It is currently anticipated that the City will receive approximately $0.5 million in mutual aid funds, and a budget amendment will be brought forward in a future Monthly Financial Report to recognize and appropriate those funds once received.

Library Department: Through November, actual expenditures totaled $4.3 million, or 35.4% of the budget, which is below par, but nearly 27% higher than expenditure levels last fiscal year. This is a result of the resuming of full operations which began earlier this calendar year.

Parks and Recreation Department: Through November, actual expenditures totaled approximately $8.7 million, or 39% of the budget, which is slightly below par, but above the prior year actuals of $7.3 million. This is due to the department resuming activities that were previously impacted by COVID-19 restrictions.

Police Department: Expenditures through November are tracking at expected levels at $33.8 million, or 39.6% of the budget. This is approximately 9.7% higher when compared to spending levels through the same period last fiscal year, primarily reflecting higher charges in the salaries and benefits, asneeded, and contractual services categories.

Stadium Operation: Stadium operating expenditures are incurred first and billed on a reimbursement basis creating a timing difference in revenue recognition. Stadium expenditures totaled $4.1 million through November and are tracking above budgeted levels at 55%. This is 41.3% higher than expenditures through the same period last year, as a direct result of the reopening of the Stadium for events. While spending is above par, it is anticipated that spending will be slowing down for the remainder of the fiscal year.
11 City of Santa Clara
Financial Status Report as of November 30, 2022
Special Revenue Funds
The table below is a summary of revenues and expenditures of select Special Revenue Funds as of November 30, 2022. The amended budget reflects carryover encumbrances from fiscal year 2021/22 and budget amendments approved by the City Council through November 2022. Effective July 1, 2021, all Building Division revenues and expenditures are budgeted and accounted for in the Building Development Services Fund, which is included in the table below.

Revenues totaled $10.2 million (59.4% of budget), while expenditures totaled $7.9 million (30.3% of budget) through the end of November. Overall, revenues are tracking above par, while expenditures are tracking below par of 41.7%. The negative expenditure in the City Affordable Housing Fund reflects an accounting change in the special disbursements category. Originally, the full loan amount was charged; however, the charges now only reflect the progress through the construction period. In the Housing Successor Agency Fund, the expenditures are currently showing as over budget as a result of a special disbursements for a housing loan, which was budgeted in FY 2021/22. An adjustment to carryover this budget was included in the Budgetary Year-End Report for FY 2021/22 approved December 6, 2022 and will be reflected in the December monthly financial report.

Actual Actual $
Fund Adopted Amended Through Percentage Through Change From Percent Description Budget Budget 11/30/2022 received 11/30/2021 Prior Year Change Housing Authority Fund $ 280,000 $ 280,000 $ 38,086 13.60% $ 214,539 $ (176,453) -82.25% City Affordable Housing Fund 682,000 682,000 197,051 28.89% 666,865 (469,814) -70.45% Housing Successor Fund 350,000 350,000 436,471 124.71% 332,982 103,489 31.08% Housing and Urban Development 1,810,000 1,810,000 423,977 23.42% 1,318,190 (894,213) -67.84% Building Development Services Fee
Fund
14,112,000 14,112,000 9,135,817 64.74% 6,096,547 3,039,270 49.85% TOTAL $ 17,234,000 $ 17,234,000 $ 10,231,402 59.37% $ 8,629,123 $ 1,602,279 18.57% Actual Actual $
Fund Adopted Amended through Percentage through Change From Percent Description Budget Budget 11/30/2022 used 11/30/2021 Prior Year Change Housing Authority Fund $ 380,363 $ 478,326 $ 72,360 15.13% $ 55,287 $ 17,073 30.88% City Affordable Housing Fund 1,685,731 5,794,313 (1,165,828) -20.12% 443,835 (1,609,663) -362.67% Housing Successor Fund 1,242,599 1,374,178 2,590,456 188.51% 343,226 2,247,230 654.74% Housing and Urban Development 2,355,815 3,109,523 883,095 28.40% 1,333,229 (450,134) -33.76% Building Development Services Fee
Fund
13,360,809 15,224,237 5,488,870 36.05% 4,183,991 1,304,879 31.19% TOTAL $ 19,025,317 $ 25,980,577 $ 7,868,953 30.29% $ 6,359,568 $ 1,509,385 23.73%

PRIOR YEAR EXPENDITURE COMPARISON

CITY OF SANTA CLARA

SPECIAL REVENUE FUNDS

REVENUE AND EXPENDITURE - OVERVIEW AND COMPARISON BY FUND REVENUES - FISCAL YEAR 2022/23 PRIOR YEAR REVENUE COMPARISON EXPENDITURES - FISCAL YEAR 2022/23
12 City of Santa Clara
Financial Status Report as of November 30, 2022
Governmental Capital Improvement Funds
The table below lists the revenue for selected capital improvement funds. The amended budget reflects current year appropriations, prior year carryover, and budget amendments approved through November 2022. As of November 30, 2022, the capital fund revenue totaled $26.2 million. In the Parks and Recreation Capital Fund, $20.6 million has been collected; of that, $20.3 million is Mitigation Fee Act revenue.

The table below lists the total amended budgeted amounts for expenditures in the Capital Improvement Funds. Similar to the revenue table, the amended expenditure budgets consist of current year appropriations, prior year carryover encumbrance balances in Governmental Capital Improvement Funds, and budget amendments approved through November 2022. As of November 30, 2022, capital fund expenditures totaled $15.6 million, or 11.6% of the amended budget.

As part of the adoption of the FY 2022/23 and FY 2023/24 capital improvement program budget, some capital funds were carried over for projects that were not anticipated to be completed by June 30, 2022.

Necessary additional adjustments to the capital carryover amounts were included as part of the Budgetary Year-End Report for FY 2021/22 approved on December 6, 2022. These adjustments will be reflected in the December monthly financial report.

The carryover of prior year budget amounts is necessary when services or projects are started but not completed at the end of the fiscal year. This is especially true for the Capital Improvement Program REVENUES - FISCAL YEAR 2022/23
Actual
Fund Current Year Prior Year Total Amended Through Percentage Description Appropriation Carryforward Budget 11/30/2022 Used Parks & Recreation $ - $ 3,556,622 $ 3,556,622 $20,634,698 580.18% Streets & Highways 4,594,005 15,190,594 19,784,599 1,871,669 9.46% Storm Drain 1,454,000 - 1,454,000 603,342 41.50%
Public Buildings - 100,000 100,000 - 0.00%
Related Santa Clara Developer 2,908,317 - 2,908,317 643,021 22.11% Patrick Henry Drive
Infrastructure Improvement
Fund
69,205 - 69,205 - 0.00%
Tasman East Specific
Infrastructure Improvement
Fund
2,413,605 - 2,413,605 2,419,501 100.24%
TOTAL $ 11,439,132 $ 18,847,216 $ 30,286,348 $26,172,231 86.42%

CITY OF SANTA CLARA

REVENUE - OVERVIEW AND COMPARISON BY SELECTED FUND

GOVERNMENTAL CAPITAL IMPROVEMENT FUNDS
13 City of Santa Clara
Financial Status Report as of November 30, 2022
(CIP) that typically spans several years. The table below displays the expenditure budget for the General Government capital funds excluding transfers.

EXPENDITURES - FISCAL YEAR 2022/23
Actual
Fund Current Year Prior Year Total Amended Through Percentage Description Appropriation Carryforward Budget 11/30/2022 Used Parks & Recreation $ 4,670,520 $ 22,437,801 $ 27,108,321 $ 1,400,692 5.17% Streets & Highways 15,200,469 59,970,079 75,170,548 9,241,592 12.29% Storm Drain 964,596 6,657,501 7,622,097 2,587,622 33.95% Fire 661,766 1,768,679 2,430,445 136,767 5.63%
Library 281,831 297,590 579,421 25,799 4.45%
Public Buildings 1,189,532 4,061,069 5,250,601 427,185 8.14% General Gov't - Other 2,000,970 7,453,526 9,454,496 736,408 7.79% Related Santa Clara Developer 2,908,317 598,382 3,506,699 1,051,692 29.99% Patrick Henry Drive
Infrastructure Improvement
Fund
69,205 - 69,205 25,833 37.33%
Tasman East Specific
Infrastructure Improvement
Fund
3,221,395 - 3,221,395 10,344 0.32%
TOTAL $ 31,168,601 $ 103,244,627 $ 134,413,228 $15,643,934 11.64%

EXPENDITURE - OVERVIEW AND COMPARISON BY FUND

CITY OF SANTA CLARA

GOVERNMENTAL CAPITAL IMPROVEMENT FUNDS
14 City of Santa Clara
Financial Status Report as of November 30, 2022
Enterprise Funds
The table below is a summary of revenues and expenses for the Enterprise Operating Funds as of November 30, 2022. Overall, revenues and expenditures are tracking below budgeted levels.

Revenues and expenditures are tracking above last fiscal year levels. Expenditures are tracking higher in the Water Recycling Fund as a result of higher spending in the resources category. In the Solid Waste Utility Fund, there are higher expenditures in the garbage collection, disposal and recycling category, compared to last fiscal year.

Revenues in the electric (which also includes the Electric Debt Service Fund), water, and sewer utility (which also includes the Sewer Debt Service Fund) and water recycling funds are primarily from customer service charges. The activity levels for these customer service charges also impact the resource and production costs on the expenditure side for these funds. The lower the revenue from customer service charges, the lower the expenditures in the resource and production category.

Actual Actual $
Fund Adopted Amended Through Percentage Through Change From Percent Description Budget Budget 11/30/2022 received 11/30/2021 Prior Year Change Electric Utility Fund $ 615,818,445 $ 615,818,445 $ 224,243,664 36.41% $ 195,042,240 $ 29,201,424 14.97% Water Utility Fund 48,358,520 48,358,520 20,768,305 42.95% 19,859,163 909,142 4.58% Sewer Utility Fund 40,459,345 40,459,345 15,920,197 39.35% 15,070,015 850,182 5.64% Cemetery Fund 600,000 600,000 252,666 42.11% 301,639 (48,973) -16.24% Solid Waste Utility Fund 37,245,092 37,245,092 13,188,294 35.41% 12,303,397 884,897 7.19% Water Recycling Fund 5,708,446 5,708,446 2,875,608 50.37% 2,839,755 35,853 1.26% TOTAL REVENUE $ 748,189,848 $ 748,189,848 $ 277,248,734 37.06% $ 245,416,209 $ 31,832,525 12.97% Actual Actual $
Fund Adopted Amended through Percentage through Change From Percent Description Budget Budget 11/30/2022 Used 11/30/2021 Prior Year Change Electric Utility Fund $ 603,681,580 $ 608,689,343 $ 224,445,731 36.87% $ 198,844,708 $ 25,601,023 12.87% Water Utility Fund 46,797,065 48,478,478 18,937,361 39.06% 17,485,087 1,452,274 8.31% Sewer Utility Fund 30,825,023 31,072,051 13,908,764 44.76% 13,495,385 413,379 3.06% Cemetery Fund 1,539,796 1,545,944 599,983 38.81% 583,538 16,445 2.82% Solid Waste Utility Fund 36,626,118 40,169,992 12,457,728 31.01% 11,120,798 1,336,930 12.02% Water Recycling Fund 5,729,413 5,739,135 3,534,465 61.59% 2,912,235 622,230 21.37% TOTAL - Operating
Appropriations
$ 725,198,995 $ 735,694,943 $ 273,884,032 37.23% $ 244,441,751 $ 29,442,281 12.04%

CITY OF SANTA CLARA

ENTERPRISE OPERATING FUNDS

REVENUES AND EXPENSES - OVERVIEW AND COMPARISON BY FUND REVENUES - FISCAL YEAR 2022/23 PRIOR YEAR REVENUE COMPARISON EXPENSES - FISCAL YEAR 2022/23 PRIOR YEAR EXPENSE COMPARISON 15 City of Santa Clara
Financial Status Report as of November 30, 2022
A summary of revenue and expenses in the Enterprise Capital Improvement Funds are detailed in the tables below. Actual revenue through November 2022 totaled $20.0 million, consisting primarily of developer contributions in the Electric Utility Fund and transfers from operating in the Sewer Utility Fund. Enterprise capital fund expenses totaled $22.0 million, or 7.8% of the amended budget. Similar to the general government capital funds, capital funds were carried over into next fiscal year as part of the FY 2022/23 and FY 2023/24 budget adoption process for those projects that have not yet been completed. Adjustments to the capital carryover amounts based on actual year-end expenditures were approved as part of the Budgetary Year-End Report for FY 2021/22 on December 6, 2022 and will be reflected in the December monthly financial report.
(1) Street Lighting fund is part of Electric Capital ImprovementFunds Actual
Fund Current Year Prior Year Total Amended Through Percentage Description Appropriation Carryforward Budget 11/30/2022 Used Electric Utility Fund $ 37,850,877 $ 14,907,345 $ 52,758,222 $ 12,554,856 23.80% Street Lighting (1) - - - 23,455 N/A
Sewer Utility Fund - - - 7,413,271 N/A
Solid Waste Utility Fund 250,000 - 250,000 4,333 1.73%

TOTAL - CIP
Appropriations
$ 38,100,877 $ 14,907,345 $ 53,008,222 $ 19,995,915 37.72% Actual
Fund Current Year Prior Year Total Amended Through Percentage Description Appropriation Carryforward Budget 11/30/2022 Used Electric Utility Fund $ 101,874,226 $ 118,664,746 $ 220,538,972 $ 17,049,795 7.73% Street Lighting (1) 71,455 4,820,273 4,891,728 48,109 0.98% Water Utility Fund 6,665,000 1,368,212 8,033,212 959,253 11.94% Sewer Utility Fund 20,300,110 25,615,224 45,915,334 3,652,962 7.96% Cemetery Fund 9,225 278,397 287,622 16,323 0
Solid Waste Utility Fund 743,000 148,520 891,520 220,424 24.72% Water Recycling Fund 50,000 - 50,000 - -
Convention Center
Capital Fund
- 2,622,854 2,622,854 35,884 0

TOTAL - CIP
Appropriations
$ 129,713,015 $ 153,518,227 $ 283,231,242 $ 21,982,750 7.76% EXPENSES - FISCAL YEAR 2022/23
REVENUES - FISCAL YEAR 2022/23

REVENUE - OVERVIEW AND COMPARISON BY SELECTED FUND

ENTERPRISE CAPITAL IMPROVEMENT FUNDS

CITY OF SANTA CLARA

ENTERPRISE CAPITAL IMPROVEMENT FUNDS

EXPENDITURE - OVERVIEW AND COMPARISON BY FUND
16 City of Santa Clara
Financial Status Report as of November 30, 2022
Fund Reserves
By policy, City Council established the City’s General Contingency Reserve, under which reserves for Budget Stabilization and Capital Projects were established. • Budget Stabilization Reserve is set aside for weathering economic downturns, emergency financial crisis, or disaster situations. The reserve target is equal to the expenditures of the City’s General Fund operations for three months (90-day or 25% General Fund Adopted Operating Budget). In FY 2022/23, the City Council approved an exception to the policy to allow the Reserve to drop below the 25% level.
• Capital Projects Reserve earmarks funds for the Capital Improvement Program.

Other General Reserves and Enterprise Fund Reserves included in this report are highlighted as follows:
• Technology Fee Reserve is set aside to update and/or replace the City’s aging technology and to ensure internal controls are in compliance with current business standard and legal requirements.
• Land Sale Reserve is net proceeds from the sale of City-owned land, with interest earned on these funds available to be appropriated for General Fund operating expenditures. This reserve is available for appropriation by City Council action.
• The Electric Utility Rate Stabilization Reserve and Operations and Maintenance Reserve ensure sufficient operating cash is available to cover day-to-day expenses, address unforeseen cost increases or revenue shortfalls, and ensure debt service coverage. • The Replacement and Improvement Reserve in the Water and Sewer Utility Funds is for future capital improvement.

The table below summarizes select reserve balances.
17 City of Santa Clara
Financial Status Report as of November 30, 2022
DETAIL OF SELECTED FUND RESERVE BALANCES:

GENERAL

FUND ELECTRIC WATER
Budget Stabilization Reserve $ 39,701,399
Capital Projects Reserve 5,364,822
Land Sale Reserve 8,708,023
Technology Fee Reserve 2,353,804
Electric Rate Stabilization Fund Reserve $ 44,898,011
Electric Operations and Maintenance Reserve 112,838,357 Replacement & Improvement $ 303,090
TOTALS $ 56,128,048 $ 157,736,368 $ 303,090

CITY OF SANTA CLARA

RESERVE BALANCES
November 30, 2022
18 City of Santa Clara
Financial Status Report as of November 30, 2022
Long-Term Interfund Advances
The funds below have made advances/loans which are not expected to be repaid within the next year.

The balances reflected in the table are through November 2022. The loan from the General Fund to Parks and Recreation Facilities reflects proceeds from the Land Sale Reserve for the purchase of property at the Reed and Grant Sports Park. This loan is anticipated to be repaid by 25% of future Mitigation Fee Act revenue until the loan is paid in full.

DETAIL OF LONG TERM INTERFUND ADVANCE BALANCES:

Fund Receiving Advance/Loan
Fund Making
Advance/Loan Type
Amount of
Advance/
Commitment
Parks and Recreation Facilities General Fund Loan 5,539,540 TOTALS $ 5,539,540
Donations to the City of Santa Clara
Donations received by department during the month of November 2022 and for fiscal year 2022/23 are shown in the table below.

Department Nov-22
Fiscal Year
2022/23
Year To Date Designated Use
City Manager's Office $ - $ 50 Help Your Neighbor
Parks & Recreation 150 249 Case Management
Parks & Recreation 498 1,748 Roberta Jones Jr. Theatre
Parks & Recreation - 30,600 Wade Brummal
TOTALS $ 648 $ 32,647
_____________________________________________________________________

MONTHLY INVESTMENT REPORT
November 2022
City of Santa Clara
Monthly Investment Report

TABLE OF CONTENTS
Page #
1 Summary of Investment Portfolio 1
2 Summary of Investments 3
3 Investment Maturity Distribution Schedule 4
4 Attachment A: Investment Inventory With Market Value 5 1 CITY OF SANTA CLARA

SUMMARY OF INVESTMENT PORTFOLIO
All securities held by the City of Santa Clara as of November 30, 2022 were in compliance with the City's Investment Policy Statement regarding current market strategy and long-term goals and objectives. All securities held are rated A or higher by two nationally recognized rating agencies. There is adequate cash flow and maturity of investments to meet the City’s needs for the next six months. The following table provides the breakdown of the total portfolio among the City, the Sports and Open Space Authority (SOSA), and the Housing Authority (HA) as of November 30, 2022.

On November 30, 2022 the cost value and market value of the City's unrestricted pooled investment portfolio were $870,259,185 and $829,400,259 respectively. Investment Strategy and Market Update The City's investment strategy for November 2022 was to invest funds not required to meet current obligations, in securities listed in the prevailing Investment Policy Statement, with maturities not to exceed five years from date of purchase. This strategy ensures safety of the City’s funds, provides liquidity to meet the City’s cash needs, and earns a reasonable portfolio return. On July 14, 2020, City Council approved entering into a contract with PFM Asset Management LLC (“PFM”) for the management of the City’s investment portfolio. The City has leveraged PFM’s extensive investment management experience and dedicated credit and risk management personnel to further diversify the portfolio and enhance returns. PFM began actively managing the City’s securities portfolio on September 1, 2020. As of November 30, 2022, 42.10% of the City’s portfolio consists of U.S. Treasury Notes, 21.07% consists of Federal Agencies, 19.66% consists of investment grade Corporate Notes, 8.05% consists of Local Agency Investment Fund (LAIF), 2.88% consists of California Asset Management Program (CAMP), 2.11% consists of investment grade Supranational Obligations, 2.09% consists of Negotiable Certificates of Deposit, 1.32% consists of investment grade Asset-Back Securities, and 0.48% consists of investment grade Municipal Bonds. In addition, City bond proceeds are invested in separate funds and are not included in the calculation of the City’s portfolio yield. The City’s portfolio yield, including LAIF, CAMP, and money market accounts, was 1.71% and the average maturity of the City’s portfolio was 1.95 years.

COST VALUE PERCENTAGE
City $866,043,278 99.52%
SOSA 305 0.00%
HA 4,215,602 0.48%
Unrestricted $870,259,185 100.00%
Restricted Bond Proceeds 2,172,426
Total Investments $872,431,611
2 The City’s securities portfolio compared to the Benchmark ICE BaML 1-5 US Treasury Index as of November 30, 2022 was as follows:

Description
Average Maturity
(Years)
Yield to Maturity
(At Cost) 1
Santa Clara Portfolio 2.19 1.63%
1-5 US Treasury 2.59 1.59%

1. Yield to Maturity at Cost: The expected rate of return based on the original cost, annual interest receipts, maturity value, and the time period from purchase date to maturity, stated as a percentage on an annualized basis.

CITY OF SANTA CLARA
SUMMARY OF INVESTMENTS NOVEMBER 30, 2022
PER
COST % OF INVESTMENT

INVESTMENT TYPE VALUE PORTFOLIO POLICY
U.S. Treasury Notes 42.10% No Limit 367,283,777Federal Agency Notes 21.07% 80% 183,754,337Corporate Notes 19.66% 25% 171,517,009Municipal Bonds 0.48% 20% 4,145,000Supranational Obligations 2.11% 20% 18,376,628 Asset-Backed Securities 1.32% 10% 11,542,003
Negotiable Certificates of Deposit 18,270,000 2.09% 30%Money Market Fund 0.00% 10% Per Fund 14,406Local Agency Investment Fund (LAIF) 70,258,380 8.05% $75 MCalifornia Asset Management Program (CAMP) 25,097,645 2.88% No LimitMutual Fund - Traffic Mitigation Bond Proceeds 2,172,426 0.24% 10% Per FundTOTAL INVESTMENTS $ 100.00% 872,431,611 U.S. Treasury Notes

42.10%
Federal Agency Notes

21.06%
Corporate Notes

19.66%
Municipal Bonds

0.48%
Supranational Obligations

2.11%
Asset‐Backed Securities

1.32%
Negotiable Certificates of Deposit

2.09%
Money Market Fund

0.00%
Local Agency Investment Fund
(LAIF)

8.05%
California Asset Management
Program (CAMP)

2.88% Mutual Fund ‐ Traffic
Mitigation Bond Proceeds

0.24%
3 CITY OF SANTA CLARA

INVESTMENT MATURITY DISTRIBUTION
AS OF NOVEMBER 30, 2022

UNRESTRICTED POOLED PORTFOLIO

MATURITY
(IN MONTHS) COST VALUE
DEMAND 95,370,431 $ (a) 3 10.96%
0 TO 6 23,334,362 3 2.68%
7 TO 12 134,114,963 23 15.41%
13 TO 18 109,492,806 23 12.58%19 TO 24 93,190,501 14 10.71%25 TO 30 116,236,516 20 13.36%31 TO 36 89,805,546 18 10.32%37 TO 42 87,635,823 19 10.07%43 TO 48 33,660,152 6 3.87%49 TO 54 56,411,714 13 6.48%55 TO 60 31,006,371 5 3.56% TOTAL 870,259,185 $ 147 100.00%
Average Maturity of Unrestricted Pool: 1.95 Years(a) $20 million is earmarked for the City's Electric Utility power-trading.

NUMBER OF

INVESTMENTS DISTRIBUTION
0%2%4%6%8%
10%12%14%16%18%20%22%24%

INVESTMENT MATURITY DISTRIBUTION

UNRESTRICTED POOLED PORTFOLIO
AS OF NOVEMBER 30, 2022
Maturity (Months)
Distribution Percentage
4 City of Santa Clara Monthly Report
11/30/2022
Description Issue Date Coupon Rate Maturity Date CUSIP Par Value S&P Rating Settle Date Cost Value YTM at Cost Market Value Unrealized G/LUNITED STATES TREASURY 7/2/2018 2.625% 6/30/2023 9128284U1 5,030,000.00 AA+ 8/26/2021 5,252,616.80 0.22% 4,972,808.90 -279,807.90UNITED STATES TREASURY 6/30/2016 1.375% 6/30/2023 912828S35 20,000,000.00 AA+ 1/17/2019 20,053,710.95 1.31% 19,619,600.00 -434,110.95UNITED STATES TREASURY 7/31/2018 2.750% 7/31/2023 912828Y61 10,000,000.00 AA+ 9/18/2018 9,918,710.94 2.93% 9,875,800.00 -42,910.94UNITED STATES TREASURY 8/31/2016 1.375% 8/31/2023 9128282D1 5,000,000.00 AA+ 9/12/2018 4,657,031.25 2.87% 4,876,000.00 218,968.75UNITED STATES TREASURY 9/30/2016 1.375% 9/30/2023 912828T26 7,500,000.00 AA+ 11/13/2018 6,947,167.97 3.01% 7,293,450.00 346,282.03 UNITED STATES TREASURY 10/15/2020 0.125% 10/15/2023 91282CAP6 5,260,000.00 AA+ 3/26/2021 5,248,288.28 0.21% 5,052,072.20 -196,216.08UNITED STATES TREASURY 10/31/2016 1.625% 10/31/2023 912828T91 5,000,000.00 AA+ 1/25/2019 4,787,695.31 2.58% 4,861,700.00 74,004.69UNITED STATES TREASURY 11/30/2018 2.875% 11/30/2023 9128285P1 9,745,000.00 AA+ 6/23/2021 10,349,875.20 0.32% 9,563,840.45 -786,034.75UNITED STATES TREASURY 11/30/2016 2.125% 11/30/2023 912828U57 10,000,000.00 AA+ 2/28/2019 10,251,562.50 1.57% 9,743,400.00 -508,162.50UNITED STATES TREASURY 1/3/2017 2.250% 12/31/2023 912828V23 5,000,000.00 AA+ 3/13/2019 4,957,812.50 2.44% 4,868,350.00 -89,462.50UNITED STATES TREASURY 1/15/2021 0.125% 1/15/2024 91282CBE0 5,000,000.00 AA+ 3/26/2021 4,981,445.31 0.26% 4,753,700.00 -227,745.31UNITED STATES TREASURY 1/15/2021 0.125% 1/15/2024 91282CBE0 2,510,000.00 AA+ 3/31/2021 2,497,744.14 0.30% 2,386,357.40 -111,386.74UNITED STATES TREASURY 1/15/2021 0.125% 1/15/2024 91282CBE0 11,000,000.00 AA+ 6/11/2021 10,972,500.00 0.22% 10,458,140.00 -514,360.00UNITED STATES TREASURY 1/15/2021 0.125% 1/15/2024 91282CBE0 5,525,000.00 AA+ 7/14/2021 5,497,375.00 0.33% 5,252,838.50 -244,536.50UNITED STATES TREASURY 1/31/2019 2.500% 1/31/2024 9128285Z9 5,000,000.00 AA+ 4/14/2020 5,407,421.88 0.34% 4,878,300.00 -529,121.88UNITED STATES TREASURY 2/28/2017 2.125% 2/29/2024 912828W48 1,625,000.00 AA+ 4/15/2021 1,637,941.42 0.31% 1,575,421.25 -62,520.17UNITED STATES TREASURY 4/15/2021 0.375% 4/15/2024 91282CBV2 5,415,000.00 AA+ 10/15/2021 5,397,443.55 0.51% 5,111,056.05 -286,387.50UNITED STATES TREASURY 4/30/2019 2.250% 4/30/2024 9128286R6 3,825,000.00 AA+ 3/25/2022 3,827,838.87 2.21% 3,701,146.50 -126,692.37UNITED STATES TREASURY 5/1/2017 2.000% 4/30/2024 912828X70 5,000,000.00 AA+ 5/16/2019 4,952,734.38 2.20% 4,821,100.00 -131,634.38UNITED STATES TREASURY 5/15/2014 2.500% 5/15/2024 912828WJ5 6,050,000.00 AA+ 8/16/2019 6,332,174.65 1.48% 5,871,101.50 -461,073.15UNITED STATES TREASURY 6/30/2019 1.750% 6/30/2024 9128286Z8 7,250,000.00 AA+ 12/12/2019 7,253,398.44 1.74% 6,945,282.50 -308,115.94UNITED STATES TREASURY 6/30/2017 2.000% 6/30/2024 912828XX3 5,000,000.00 AA+ 8/29/2019 5,136,328.13 1.41% 4,807,400.00 -328,928.13UNITED STATES TREASURY 7/15/2021 0.375% 7/15/2024 91282CCL3 5,250,000.00 AA+ 9/10/2021 5,246,718.75 0.40% 4,913,685.00 -333,033.75 UNITED STATES TREASURY 7/31/2017 2.125% 7/31/2024 9128282N9 5,000,000.00 AA+ 9/10/2019 5,133,315.75 1.56% 4,807,400.00 -325,915.75UNITED STATES TREASURY 8/31/2017 1.875% 8/31/2024 9128282U3 2,985,000.00 AA+ 3/10/2020 3,149,640.66 0.62% 2,853,719.70 -295,920.96UNITED STATES TREASURY 8/31/2019 1.250% 8/31/2024 912828YE4 4,750,000.00 AA+ 1/5/2021 4,928,867.19 0.21% 4,493,405.00 -435,462.19UNITED STATES TREASURY 10/31/2017 2.250% 10/31/2024 9128283D0 10,000,000.00 AA+ 11/18/2019 10,290,625.00 1.64% 9,610,900.00 -679,725.00UNITED STATES TREASURY 11/30/2017 2.125% 11/30/2024 9128283J7 5,000,000.00 AA+ 1/6/2020 5,118,945.31 1.62% 4,788,500.00 -330,445.31 UNITED STATES TREASURY 1/2/2018 2.250% 12/31/2024 9128283P3 10,000,000.00 AA+ 1/7/2020 10,300,781.25 1.62% 9,588,700.00 -712,081.25 UNITED STATES TREASURY 1/15/2022 1.125% 1/15/2025 91282CDS7 2,095,000.00 AA+ 4/12/2022 2,007,026.37 2.71% 1,959,893.45 -47,132.92 UNITED STATES TREASURY 1/31/2020 1.375% 1/31/2025 912828Z52 5,000,000.00 AA+ 4/22/2020 5,238,671.88 0.37% 4,701,950.00 -536,721.88UNITED STATES TREASURY 1/31/2020 1.375% 1/31/2025 912828Z52 1,950,000.00 AA+ 5/7/2021 2,013,146.48 0.50% 1,833,760.50 -179,385.98UNITED STATES TREASURY 2/28/2018 2.750% 2/28/2025 9128283Z1 6,200,000.00 AA+ 3/6/2020 6,850,757.82 0.61% 5,999,740.00 -851,017.82 UNITED STATES TREASURY 8/31/2020 0.250% 8/31/2025 91282CAJ0 4,120,000.00 AA+ 8/2/2021 4,075,581.25 0.52% 3,707,340.80 -368,240.45 UNITED STATES TREASURY 10/31/2020 0.250% 10/31/2025 91282CAT8 5,400,000.00 AA+ 10/7/2021 5,285,882.83 0.78% 4,839,750.00 -446,132.83UNITED STATES TREASURY 10/31/2020 0.250% 10/31/2025 91282CAT8 5,510,000.00 AA+ 6/7/2022 5,024,216.02 3.00% 4,938,337.50 -85,878.52UNITED STATES TREASURY 11/30/2020 0.375% 11/30/2025 91282CAZ4 4,450,000.00 AA+ 11/4/2021 4,327,625.00 1.07% 3,988,846.50 -338,778.50UNITED STATES TREASURY 12/31/2020 0.375% 12/31/2025 91282CBC4 3,820,000.00 AA+ 5/3/2021 3,751,956.25 0.76% 3,419,931.40 -332,024.85UNITED STATES TREASURY 1/31/2021 0.375% 1/31/2026 91282CBH3 8,025,000.00 AA+ 11/30/2021 7,817,478.52 1.01% 7,155,732.00 -661,746.52 UNITED STATES TREASURY 1/31/2021 0.375% 1/31/2026 91282CBH3 4,050,000.00 AA+ 1/6/2022 3,906,351.56 1.27% 3,611,304.01 -295,047.55 UNITED STATES TREASURY 1/31/2021 0.375% 1/31/2026 91282CBH3 7,735,000.00 AA+ 2/25/2022 7,305,949.22 1.84% 6,897,144.80 -408,804.42 UNITED STATES TREASURY 1/31/2021 0.375% 1/31/2026 91282CBH3 8,710,000.00 AA+ 5/3/2022 7,905,345.70 3.00% 7,766,532.79 -138,812.91 UNITED STATES TREASURY 2/28/2021 0.500% 2/28/2026 91282CBQ3 3,575,000.00 AA+ 8/31/2021 3,574,577.43 0.70% 3,191,938.76 -382,638.67 UNITED STATES TREASURY 2/28/2021 0.500% 2/28/2026 91282CBQ3 5,175,000.00 AA+ 12/7/2021 5,035,517.58 1.15% 4,620,498.74 -415,018.84 UNITED STATES TREASURY 5/31/2021 0.750% 5/31/2026 91282CCF6 5,860,000.00 AA+ 3/21/2022 5,520,989.84 2.20% 5,238,312.60 -282,677.24 UNITED STATES TREASURY 5/31/2021 0.750% 5/31/2026 91282CCF6 9,250,000.00 AA+ 6/8/2022 8,477,480.47 2.99% 8,268,667.50 -208,812.97 UNITED STATES TREASURY 8/15/2016 1.500% 8/15/2026 9128282A7 5,350,000.00 AA+ 8/15/2022 5,033,388.67 3.08% 4,893,163.50 -140,225.17 12/8/2022 12:29 PM 1 of 4
Attachment A
City of Santa Clara Monthly Report
11/30/2022
Description Issue Date Coupon Rate Maturity Date CUSIP Par Value S&P Rating Settle Date Cost Value YTM at Cost Market Value Unrealized G/LUNITED STATES TREASURY 9/30/2021 0.875% 9/30/2026 91282CCZ2 8,500,000.00 AA+ 4/5/2022 7,878,769.53 2.61% 7,571,970.00 -306,799.53 UNITED STATES TREASURY 10/31/2021 1.125% 10/31/2026 91282CDG3 5,700,000.00 AA+ 8/8/2022 5,267,601.56 3.05% 5,118,429.00 -149,172.56UNITED STATES TREASURY 11/15/2016 2.000% 11/15/2026 912828U24 8,840,000.00 AA+ 6/8/2022 8,472,242.19 3.01% 8,210,503.60 -261,738.59 UNITED STATES TREASURY 12/31/2021 1.250% 12/31/2026 91282CDQ1 5,340,000.00 AA+ 4/14/2022 5,000,617.97 2.69% 4,803,490.20 -197,127.77UNITED STATES TREASURY 2/15/2017 2.250% 2/15/2027 912828V98 2,100,000.00 AA+ 4/20/2022 2,040,691.41 2.88% 1,964,319.00 -76,372.41UNITED STATES TREASURY 2/15/2017 2.250% 2/15/2027 912828V98 5,400,000.00 AA+ 6/13/2022 5,159,109.38 3.29% 5,051,106.00 -108,003.38UNITED STATES TREASURY 2/15/2017 2.250% 2/15/2027 912828V98 7,910,000.00 AA+ 7/7/2022 7,705,452.34 2.85% 7,398,934.90 -306,517.44UNITED STATES TREASURY 3/31/2022 2.500% 3/31/2027 91282CEF4 940,000.00 AA+ 11/30/2022 883,159.38 4.03% 887,679.60 4,520.22UNITED STATES TREASURY 4/30/2020 0.500% 4/30/2027 912828ZN3 7,000,000.00 AA+ 8/3/2022 6,262,812.50 2.89% 6,052,550.00 -210,262.50UNITED STATES TREASURY 5/15/2017 2.375% 5/15/2027 912828X88 5,400,000.00 AA+ 8/8/2022 5,248,546.88 3.01% 5,066,496.00 -182,050.88UNITED STATES TREASURY 6/30/2020 0.500% 6/30/2027 912828ZV5 5,675,000.00 AA+ 8/15/2022 5,034,789.06 3.00% 4,878,059.75 -156,729.31UNITED STATES TREASURY 7/31/2022 2.750% 7/31/2027 91282CFB2 10,800,000.00 AA+ 9/14/2022 10,392,046.88 3.60% 10,290,348.00 -101,698.88UNITED STATES TREASURY 8/15/2017 2.250% 8/15/2027 9128282R0 11,115,000.00 AA+ 9/6/2022 10,537,975.20 3.40% 10,351,732.95 -186,242.25 UNITED STATES TREASURY 9/30/2022 4.125% 9/30/2027 91282CFM8 3,785,000.00 AA+ 11/3/2022 3,760,308.79 4.27% 3,831,139.15 70,830.36 U.S. Treasury Bond / Note Subtotal 373,500,000.00 367,283,777.34 350,854,777.95 -16,428,999.39FANNIE MAE 11/25/2020 0.250% 11/27/2023 3135G06H1 4,950,000.00 AA+ 11/25/2020 4,944,357.00 0.29% 4,729,675.50 -214,681.50FANNIE MAE 11/25/2020 0.250% 11/27/2023 3135G06H1 5,225,000.00 AA+ 1/22/2021 5,230,799.75 0.21% 4,992,435.25 -238,364.50FANNIE MAE 7/8/2019 1.750% 7/2/2024 3135G0V75 15,000,000.00 AA+ 12/18/2019 15,566,089.75 0.90% 14,366,550.00 -1,199,539.75 FANNIE MAE 1/10/2020 1.625% 1/7/2025 3135G0X24 7,500,000.00 AA+ 1/22/2020 7,499,025.00 1.63% 7,080,150.00 -418,875.00FANNIE MAE 4/24/2020 0.625% 4/22/2025 3135G03U5 10,000,000.00 AA+ 5/7/2020 10,050,600.00 0.52% 9,158,300.00 -892,300.00 FANNIE MAE 11/12/2020 0.500% 11/7/2025 3135G06G3 1,860,000.00 AA+ 12/29/2020 1,864,929.00 0.44% 1,671,619.20 -193,309.80 FNMA Medium Term Note Subtotal 44,535,000.00 45,155,800.50 41,998,729.95 -3,157,070.55 FEDERAL FARM CREDIT BANKS 6/19/2018 2.890% 6/19/2023 3133EJSD2 5,000,000.00 AA+ 11/28/2018 4,980,250.00 2.98% 4,946,650.00 -33,600.00FEDERAL FARM CREDIT BANKS 1/17/2020 1.600% 7/17/2023 3133ELHZ0 5,000,000.00 AA+ 1/16/2020 4,998,200.00 1.61% 4,901,150.00 -97,050.00 FEDERAL FARM CREDIT BANKS 8/14/2018 2.900% 8/14/2023 3133EJWV7 5,000,000.00 AA+ 9/17/2018 4,977,050.00 3.00% 4,931,200.00 -45,850.00 FEDERAL FARM CREDIT BANKS 10/2/2018 3.050% 10/2/2023 3133EJD48 7,575,000.00 AA+ 11/27/2018 7,583,620.35 3.02% 7,458,799.50 -124,820.85FEDERAL FARM CREDIT BANKS 11/1/2017 2.200% 11/1/2023 3133EHN25 2,965,000.00 AA+ 6/26/2019 3,006,094.90 1.87% 2,896,923.60 -109,171.30 FEDERAL FARM CREDIT BANKS 2/27/2019 2.610% 2/27/2024 3133EKBW5 5,000,000.00 AA+ 3/20/2019 5,033,150.00 2.47% 4,871,550.00 -161,600.00FEDERAL FARM CREDIT BANKS 4/22/2019 2.450% 7/22/2024 3133EKHV1 5,000,000.00 AA+ 9/4/2019 5,250,650.00 1.38% 4,842,250.00 -408,400.00 FEDERAL FARM CREDIT BANKS 11/1/2019 1.650% 11/1/2024 3133EK4Y9 5,000,000.00 AA+ 11/8/2019 4,962,850.00 1.81% 4,749,750.00 -213,100.00 FEDERAL FARM CREDIT BANKS 1/23/2020 1.650% 1/23/2025 3133ELJM7 7,320,000.00 AA+ 5/18/2020 7,689,367.20 0.56% 6,902,320.80 -787,046.40 FEDERAL FARM CREDIT BANKS 5/14/2020 0.500% 5/14/2025 3133ELZM9 10,000,000.00 AA+ 5/15/2020 9,982,800.00 0.53% 9,126,300.00 -856,500.00FEDERAL FARM CREDIT BANKS 6/9/2020 0.500% 6/9/2025 3133ELH23 10,000,000.00 AA+ 6/12/2020 9,997,540.00 0.50% 9,112,500.00 -885,040.00FFCB Medium Term Note Subtotal 67,860,000.00 68,461,572.45 64,739,393.90 -3,722,178.55 FEDERAL FARM CREDIT BANKS 7/2/2020 0.500% 7/2/2025 3133ELR71 10,000,000.00 AA+ 7/14/2020 10,017,640.00 0.46% 9,082,400.00 -935,240.00FFCB Coupon Note Subtotal 10,000,000.00 10,017,640.00 9,082,400.00 -935,240.00FEDERAL HOME LOAN BANKS 10/17/2014 2.375% 9/8/2023 3130A3DL5 5,000,000.00 AA+ 9/5/2019 5,164,135.00 1.53% 4,910,000.00 -254,135.00 FEDERAL HOME LOAN BANKS 12/9/2013 3.375% 12/8/2023 3130A0F70 5,000,000.00 AA+ 1/8/2019 5,147,870.00 2.73% 4,927,850.00 -220,020.00 FEDERAL HOME LOAN BANKS 1/16/2015 2.250% 12/8/2023 3130A3VC5 5,000,000.00 AA+ 3/12/2020 5,282,425.00 0.72% 4,873,750.00 -408,675.00 FEDERAL HOME LOAN BANKS 5/8/2014 2.875% 6/14/2024 3130A1XJ2 5,000,000.00 AA+ 11/20/2019 5,270,205.00 1.64% 4,863,950.00 -406,255.00FEDERAL HOME LOAN BANKS 11/6/2014 2.750% 12/13/2024 3130A3GE8 5,000,000.00 AA+ 3/12/2020 5,461,300.00 0.77% 4,831,800.00 -629,500.00 FHLB Medium Term Note Subtotal 25,000,000.00 26,325,935.00 24,407,350.00 -1,918,585.00 12/8/2022 12:29 PM 2 of 4
Attachment A
City of Santa Clara Monthly Report
11/30/2022
Description Issue Date Coupon Rate Maturity Date CUSIP Par Value S&P Rating Settle Date Cost Value YTM at Cost Market Value Unrealized G/LFREDDIE MAC 5/7/2020 0.375% 5/5/2023 3137EAER6 5,000,000.00 AA+ 5/8/2020 5,014,545.00 0.28% 4,910,400.00 -104,145.00 FREDDIE MAC 9/4/2020 0.250% 9/8/2023 3137EAEW5 1,640,000.00 AA+ 9/4/2020 1,640,761.21 0.24% 1,583,288.80 -57,472.41 FREDDIE MAC 9/4/2020 0.250% 9/8/2023 3137EAEW5 4,295,000.00 AA+ 9/4/2020 4,293,582.65 0.26% 4,146,478.90 -147,103.75 FREDDIE MAC 10/16/2020 0.125% 10/16/2023 3137EAEY1 3,270,000.00 AA+ 10/16/2020 3,257,802.90 0.25% 3,138,644.10 -119,158.80FREDDIE MAC 2/14/2020 1.500% 2/12/2025 3137EAEP0 5,000,000.00 AA+ 5/20/2020 5,226,960.00 0.53% 4,702,000.00 -524,960.00FREDDIE MAC 8/30/2022 4.050% 8/28/2025 3134GXS54 5,000,000.00 AA+ 8/30/2022 4,998,000.00 4.06% 4,897,050.00 -100,950.00 FREDDIE MAC 9/25/2020 0.375% 9/23/2025 3137EAEX3 9,390,000.00 AA+ 9/25/2020 9,361,736.10 0.44% 8,449,591.50 -912,144.60FHLMC Medium Term Note Subtotal 33,595,000.00 33,793,387.86 31,827,453.30 -1,965,934.56 INTER-AMERICAN DEVELOPMENT BANK 9/23/2021 0.500% 9/23/2024 4581X0DZ8 11,065,000.00 AAA 9/23/2021 11,056,811.90 0.52% 10,304,059.95 -752,751.95INTL BANK OF RECONSTRUCTION AND DEV 4/20/2021 0.125% 4/20/2023 459058JV6 7,335,000.00 AAA 4/20/2021 7,319,816.55 0.23% 7,209,938.25 -109,878.30Supranational Subtotal 18,400,000.00 18,376,628.45 17,513,998.20 -862,630.25 CALIFORNIA EARTHQUAKE AUTHORITY 11/24/2020 1.477% 7/1/2023 13017HAK2 1,430,000.00 NR 11/24/2020 1,430,000.00 1.48% 1,395,794.40 -34,205.60LOS ANGELES COMMUNITY COLLEGE DISTRICT C 11/10/2020 0.773% 8/1/2025 54438CYK2 2,715,000.00 AA+ 11/10/2020 2,715,000.00 0.77% 2,445,970.65 -269,029.35Municipals Subtotal 4,145,000.00 4,145,000.00 3,841,765.05 -303,234.95 3M COMPANY 9/14/2018 3.250% 2/14/2024 88579YBB6 5,000,000.00 A+ 11/29/2021 5,241,250.00 1.03% 4,914,400.00 -326,850.00 3M COMPANY 3/27/2020 2.650% 4/15/2025 88579YBM2 2,560,000.00 A+ 4/25/2022 2,511,616.00 3.32% 2,452,787.20 -58,828.80ADOBE INC 1/26/2015 3.250% 2/1/2025 00724FAC5 4,000,000.00 A+ 1/26/2022 4,183,680.00 1.68% 3,911,160.00 -272,520.00 ALPHABET INC 4/27/2016 3.375% 2/25/2024 02079KAB3 5,330,000.00 AA+ 11/23/2021 5,642,444.60 0.75% 5,316,728.30 -325,716.30AMAZON.COM INC 5/12/2021 0.450% 5/12/2024 023135BW5 245,000.00 AA 5/12/2021 302,801.19 0.50% 231,265.30 -71,535.89AMAZON.COM INC 5/12/2021 0.450% 5/12/2024 023135BW5 4,000,000.00 AA 3/14/2022 3,874,280.00 1.94% 3,775,760.00 -98,520.00AMAZON.COM INC 4/13/2022 3.300% 4/13/2027 023135CF1 6,715,000.00 AA 4/25/2022 6,672,964.10 3.44% 6,437,939.10 -235,025.00APPLE INC 11/13/2017 2.750% 1/13/2025 037833DF4 5,000,000.00 AA+ 3/9/2021 5,340,100.00 0.94% 4,836,050.00 -504,050.00APPLE INC 11/13/2017 2.750% 1/13/2025 037833DF4 5,000,000.00 AA+ 3/29/2021 5,355,200.00 0.84% 4,836,050.00 -519,150.00 BANK OF AMERICA 7/23/2013 4.100% 7/24/2023 06053FAA7 4,070,000.00 A- 9/15/2020 4,482,494.50 0.52% 4,053,597.90 -428,896.60BANK OF AMERICA CORP 3/22/2022 3.384% 4/2/2026 06051GKM0 5,000,000.00 A- 3/22/2022 5,005,100.00 3.36% 4,761,100.00 -244,000.00 BANK OF AMERICA CORP 4/22/2021 1.734% 7/22/2027 06051GJS9 1,420,000.00 A- 8/10/2022 1,281,251.80 3.92% 1,244,246.60 -37,005.20 BANK OF NY MELLON CORP 1/28/2021 0.750% 1/28/2026 06406RAQ0 9,000,000.00 A 2/10/2021 9,025,920.00 0.69% 8,003,520.00 -1,022,400.00BLACKROCK INC 3/28/2017 3.200% 3/15/2027 09247XAN1 4,140,000.00 AA- 5/18/2022 4,085,352.00 3.50% 3,971,750.40 -113,601.60BLACKROCK INC 3/28/2017 3.200% 3/15/2027 09247XAN1 4,140,000.00 AA- 5/18/2022 4,086,055.80 3.50% 3,971,750.40 -114,305.40BRISTOL-MYERS SQUIBB CO 11/13/2020 0.750% 11/13/2025 110122DN5 5,725,000.00 A+ 6/30/2021 5,672,673.50 0.96% 5,161,660.00 -511,013.50CATERPILLAR FINANCIAL SERVIC 1/10/2022 0.950% 1/10/2024 14913R2S5 2,535,000.00 A 1/10/2022 2,534,594.40 0.96% 2,433,828.15 -100,766.25 CATERPILLAR FINANCIAL SERVIC 1/10/2022 0.950% 1/10/2024 14913R2S5 3,100,000.00 A 3/14/2022 3,045,409.00 1.94% 2,976,279.00 -69,130.00ELI LILLY & CO 3/5/2015 2.750% 6/1/2025 532457BH0 5,415,000.00 A+ 2/10/2022 5,559,255.60 1.91% 5,194,663.65 -364,591.95 HERSHEY COMPANY 8/21/2015 3.200% 8/21/2025 427866AU2 3,000,000.00 A 3/30/2022 3,014,040.00 3.05% 2,899,110.00 -114,930.00HONEYWELL INTERNATIONAL 5/18/2020 1.350% 6/1/2025 438516CB0 5,000,000.00 A 9/8/2021 5,097,900.00 0.82% 4,635,300.00 -462,600.00HONEYWELL INTERNATIONAL 5/18/2020 1.350% 6/1/2025 438516CB0 2,255,000.00 A 3/22/2022 2,181,960.55 2.41% 2,090,520.30 -91,440.25JOHN DEERE CAPITAL CORP 6/17/2021 1.050% 6/17/2026 24422EVR7 5,000,000.00 A 12/8/2021 4,908,600.00 1.47% 4,450,700.00 -457,900.00 JOHNSON & JOHNSON 8/25/2020 0.550% 9/1/2025 478160CN2 5,000,000.00 AAA 9/3/2020 5,023,550.00 0.45% 4,544,300.00 -479,250.00 JPMORGAN CHASE & CO 9/16/2020 0.653% 9/16/2024 46647PBS4 2,675,000.00 A- 9/16/2020 2,675,000.00 0.65% 2,570,086.50 -104,913.50 12/8/2022 12:29 PM 3 of 4
Attachment A
City of Santa Clara Monthly Report
11/30/2022
Description Issue Date Coupon Rate Maturity Date CUSIP Par Value S&P Rating Settle Date Cost Value YTM at Cost Market Value Unrealized G/LJPMORGAN CHASE & CO 8/10/2021 0.768% 8/9/2025 46647PCM6 2,340,000.00 A- 8/10/2021 2,340,000.00 0.77% 2,158,860.60 -181,139.40JPMORGAN CHASE & CO 3/13/2020 2.005% 3/13/2026 46647PBH8 2,800,000.00 A- 3/22/2022 2,712,500.00 2.84% 2,601,900.00 -110,600.00JPMORGAN CHASE & CO 4/22/2021 1.578% 4/22/2027 46647PCB0 4,100,000.00 A- 8/10/2022 3,710,746.00 3.80% 3,619,890.00 -90,856.00MASTERCARD INC 12/3/2019 2.000% 3/3/2025 57636QAN4 5,000,000.00 A+ 3/9/2021 5,213,450.00 0.91% 4,749,750.00 -463,700.00MASTERCARD INC 12/3/2019 2.000% 3/3/2025 57636QAN4 5,000,000.00 A+ 3/10/2022 4,990,800.00 2.06% 4,749,750.00 -241,050.00MERCK & CO INC 3/7/2019 2.900% 3/7/2024 58933YAU9 5,375,000.00 A+ 11/23/2021 5,623,916.25 0.85% 5,267,446.25 -356,470.00MICROSOFT CORP 2/6/2017 2.875% 2/6/2024 594918BX1 5,000,000.00 AAA 11/29/2021 5,202,600.00 1.00% 4,909,850.00 -292,750.00MICROSOFT CORP 2/12/2015 2.700% 2/12/2025 594918BB9 5,000,000.00 AAA 3/9/2021 5,341,700.00 0.92% 4,845,400.00 -496,300.00QUALCOMM INC 5/20/2015 3.450% 5/20/2025 747525AF0 5,850,000.00 A 5/19/2022 5,860,588.50 3.39% 5,714,631.00 -145,957.50STATE STREET BANK & TR 2/7/2022 1.746% 2/6/2026 857477BR3 1,115,000.00 A 2/7/2022 1,115,000.00 1.75% 1,037,920.05 -77,079.95STATE STREET BANK & TR 10/29/2020 2.901% 3/30/2026 857477BM4 4,250,000.00 A 3/14/2022 4,275,372.50 2.74% 4,040,687.50 -234,685.00TARGET CORP 1/24/2022 1.950% 1/15/2027 87612EBM7 990,000.00 A 1/24/2022 988,317.00 1.99% 905,008.50 -83,308.50TARGET CORP 1/24/2022 1.950% 1/15/2027 87612EBM7 4,595,000.00 A 2/1/2022 4,567,889.50 2.08% 4,200,519.25 -367,370.25TOYOTA MOTOR CREDIT CORP 1/11/2021 0.450% 1/11/2024 89236THU2 6,100,000.00 A+ 1/11/2021 6,099,634.00 0.45% 5,812,995.00 -286,639.00UNILEVER CAPITAL CORP 9/14/2020 0.375% 9/14/2023 904764BJ5 660,000.00 A+ 9/14/2020 659,155.20 0.42% 637,111.20 -22,044.00WAL-MART STORES INC 6/27/2018 3.550% 6/26/2025 931142ED1 5,700,000.00 AA 2/8/2022 6,011,847.00 1.87% 5,622,993.00 -388,854.00Corporate Note Subtotal 169,200,000.00 171,517,008.99 160,549,265.15 -10,967,743.84 CARMAX AUTO OWNER TRUST 4/21/2021 0.520% 2/17/2026 14314QAC8 2,375,000.00 AAA 4/21/2021 2,374,488.19 0.52% 2,277,292.50 -97,195.69DISCOVER CARD EXECUTION NOTE TRUST 9/27/2021 0.580% 9/15/2026 254683CP8 2,100,000.00 AAA 9/27/2021 2,099,550.39 0.58% 1,946,574.00 -152,976.39HONDA AUTO RECEIVABLES OWNER T 11/24/2021 0.880% 1/21/2026 43815GAC3 1,615,000.00 NR 11/24/2021 1,614,659.56 0.89% 1,526,788.70 -87,870.86HYUNDAI AUTO RECEIVABLES TRUST 4/28/2021 0.380% 9/15/2025 44933LAC7 1,563,958.37 AAA 4/28/2021 1,563,793.84 0.38% 1,507,530.75 -56,263.09 HYUNDAI AUTO RECEIVABLES TRUST 11/17/2021 0.740% 5/15/2026 44935FAD6 1,245,000.00 AAA 11/17/2021 1,244,722.12 0.75% 1,169,764.65 -74,957.47TOYOTA AUTO RECEIVABLES OWNER 9/27/2021 0.430% 1/15/2026 89239BAC5 2,645,000.00 AAA 9/27/2021 2,644,789.19 0.43% 2,509,126.35 -135,662.84Asset-Backed Security Subtotal 11,543,958.37 11,542,003.29 10,937,076.95 -604,926.34 BARCLAYS BANK PLC 2/3/2022 1.050% 2/1/2023 06742TG34 11,000,000.00 A-1 2/3/2022 11,000,000.00 1.05% 10,934,990.00 -65,010.00TORONTO DOMINION BANK NY 10/31/2022 5.470% 10/25/2024 89115B6F2 7,270,000.00 A 10/31/2022 7,270,000.00 5.44% 7,342,627.30 72,627.30Certificate of Deposit Subtotal 18,270,000.00 18,270,000.00 18,277,617.30 7,617.30 PRINCIPAL PUBLIC DEPOSIT SWEEP PROGRAM 2.00% 12/1/2022 992995944 14,405.79 9/1/2020 14,405.79 14,405.79 -LOCAL AGENCY INVESTMENT FUND 2.01% 12/1/2022 70,258,380.49 9/30/1997 70,258,380.49 70,258,380.49 - CALIFORNIA ASSET MANAGEMENT PROGRAM 3.90% 12/1/2022 25,097,644.67 10/4/2022 25,097,644.67 25,097,644.67 -DREYFUS TREASURY 3.62% 12/1/2022 2,172,426.21 10/31/1997 2,172,426.21 2,172,426.21 -Cash Equivalent Subtotal 97,542,857.16 97,542,857.16 97,542,857.16 -Grand Total Count 148 873,591,815.53 872,431,611.04 831,572,684.91 (40,858,926.13) 12/8/2022 12:29 PM 4 of 4
Attachment A
Attachment 3
Department/Item
Source of
Funds
Use of
Funds Explanation
Materials/Services/Supplies 1,000,000 Increases the materials, services, and supplies in the Water and Sewer Utilities Department's budget
to set aside funding for potential litigation costs (five affirmative Council votes required for the use of
unused balances).

Reserve for Claims 3,000,000 Establishes a reserve for claims to set aside funds for future potential legal settlement costs (five
affirmative Council votes required for the use of
unused balances).

Ending Fund Balance (4,000,000) Decreases the ending fund balance to offset the actions recommended above (five affirmative
Council votes required for the use of unused
balances).
- -
Department/Item
Source of
Funds
Use of
Funds Explanation
Other Agencies Revenue /
Tasman Complete Streets
Plan 2021 Improvements
Phase 1 – North San Jose
Settlement Project
1,500,000 1,500,000 Increases the estimate for Other Agencies Revenue and establishes the Tasman Complete Streets Plan
2021 Improvements Phase 1 – North San Jose
Settlement project in the amount of $1.5 million to
recognize payment from the City of San Jose for the
Tasman Complete Streets Plan 2021
Improvements Phase 1 project as part of the North
San Jose Settlement, approved by the City on June
28,2022. This is the first installment of the total
payment of $9,330,000 from the City of San Jose
according to the schedule outlined by the
settlement. These funds are to be used for
complete street improvements on Tasman Drive
(five affirmative Council votes required to
appropriate additional revenue).
1,500,000 1,500,000
FY 2022/23 Budget Amendments
Streets and Highways Capital Fund (533)
Sewer Utility Fund (094)
1 City of Santa Clara
Agenda Report
1500 Warburton Avenue
Santa Clara, CA 95050
santaclaraca.gov
@SantaClaraCity
23-1447 Agenda Date: 1/31/2023

REPORT TO COUNCIL

SUBJECT
Approval of the Annual Investment Policy Statement for the City of Santa Clara, its Agencies and Corporations

COUNCIL PILLAR
Enhance Community Engagement and Transparency

BACKGROUND
Council Policy 017 Investment Policy: Annual Statement provides the framework and guidance for managing the City’s investment portfolio. The City’s Investment Policy expands on the Council Policy framework by providing further guidance and processes.

Section 904 of the City Charter states that the Director of Finance is required to “[h]ave custody of all investments and invested funds of the City government, or in possession of such government in a fiduciary capacity, and have the safe-keeping of all bonds and notes of the City and the receipt and delivery of City bonds and notes for transfer, registration or exchange.” In accordance with Government Code §53646, City Council adopted an investment policy and the Director of Finance brings that policy to Council on an annual basis, particularly highlighting any changes to the policy for consideration and approval by Council. In addition, the Investment Policy itself (Section R) requires annual approval by Council.

The Investment Policy is a written document that governs the selection of investments and provides staff with guidance for consistent, informed investment decision making. The Investment Policy also makes clear the City’s investment objectives, as required by Government Code §53600.5, which are, in order of priority, 1) safety of principal, 2) liquidity, and 3) return on investment. The Investment Policy is reviewed and updated annually in order to promote prudent investment decisions and to remain compliant with State and Federal laws.

DISCUSSION
The City’s Investment Policy is regularly reviewed to determine if periodic updates are necessary and prudent. As part of this review, staff recommends the following updates to the 2023 Investment Policy:

1. Edit investment strategy language to clearly define conditions when securities would be sold prior to maturity.

Section A. Introduction (page 1)
All securities purchased for the City’s portfolio are suitable to hold until maturity. However, securities may be sold prior to maturity when it is in the City’s best interest and may be done City of Santa Clara Page 1 of 5 Printed on 1/26/2023
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23-1447 Agenda Date: 1/31/2023
to adjust the portfolio duration or improve the risk structure, liquidity, or yield of the portfolio.

2. Update applicable Investment Policy section to reflect Code changes that went into effect on January 1, 2023. Passage of Senate Bill 1489 in September 2022 made changes to Code §53601, which governs the investment of public funds, expanding the universe of purchasable securities by explicitly stating that an investment’s term to maturity should be calculated from its settlement date. The bill also added language restricting forward settlement of purchased securities to a maximum of 45 days.

Section N. Maximum Term of Investment (page 9)
Add new Code language stating that an investment’s term or remaining maturity shall be measured from the settlement date to final maturity; and that security purchased shall not have a forward settlement date exceeding 45 days from the time of investment.

3. The City portfolio’s benchmark, the ICE BofAML 1-5 Year U.S. Treasury Index, was reviewed and a determination was made to continue using this index as the benchmark. While the City portfolio’s sector allocation has been diversified during the past two fiscal years to comprise more than U.S. Treasury and Agency securities, this index continues to serve as a good market benchmark and is comparable in credit quality and duration to the City’s portfolio. The tables below provide information on the characteristics of the City’s portfolio, its benchmark, and alternative indices, including the ICE BofAML 1-5 Year U.S. Treasury and Agency index, and the ICE BofAML 1-5 Year AAA-A US Corporate and Government Index. These two alternative indices vary from the City’s portfolio. The ICE BofAML 1-5 Year AAA-A US Corporate and Government Index’s corporate average credit rating of A2 is lower than City portfolio’s corporate holding rating (see Table 2); and when comparing index durations, there is no material difference between the indices (see Table 1). Additionally, these alternative indices are still heavily weighted towards U.S. Treasury holdings and do not match up well to the City’s portfolio (see Table 3).

While the City recommends continuing the ICE BofAML 1-5 Year U.S. Treasury Index as its Investment Policy benchmark, the ICE BofAML 1-5 Year AAA-A US Corporate and Government Index, a more diversified index as illustrated in Table 3, is recommended to be added to the Monthly Investment Report to provide the public and Council with additional relevant comparative information.

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23-1447 Agenda Date: 1/31/2023
Table 1
Strategy/Benchmark Past 1
Year
Past 2
Years
Past 10
Years
Yield at
Cost*
Duration
City of Santa Clara -5.39% -2.79% n/a 1.59% 2.17
1-5 Year U.S. Treasury Index -6.78% -3.64% 0.62% 1.25% 2.48 1-5 Year U.S. Treasury &
Agency Index -6.78% -3.63% 0.62% 1.25% 2.48
1-5 Year AAA-A US Corporate
& Government Index -6.98% -3.63% 0.78% 1.33% 2.50
ICE BofAML indices. As of September 30, 2022, which was the last quarterly reporting period. Yield at cost of market indices represents the 24-month rolling average market yield.

Table 2
Average
Credit Rating AAA Aa1 Aa2 Aa3 A1 A2 A3
City of Santa Clara A1 15% 0% 7% 11% 35% 32% 0%
1-5 Year AAA-A US Corporate
& Government Index A2 2% 2% 3% 10% 19% 36% 28%
ICE BofAML indices. As of November 30, 2022. Ratings by Moody’s.

Table 3
Treasury Quasi & Foreign
Government* Corporate Total
City of Santa Clara 48% 26% 22% 96%*
1-5 Year U.S. Treasury Index 100% 0% 0% 100%
1-5 Year U.S. Treasury &
Agency Index 99% 1% 0% 100%
1-5 Year AAA-A US Corporate
& Government Index 74% 9% 17% 100%
ICE BofAML indices. As of November 30, 2022. Quasi and foreign government may include securities issued by U.S. federal agencies and government sponsored enterprises, foreign governments, supranational organizations, and municipalities. *City’s total sector calculation excludes allocations to asset-backed securities and negotiable CDs.

4. Add supplementary information to the Monthly Investment Report (Report) to further illustrate the City portfolio and market index return performances. Information includes, but is not City of Santa Clara Page 3 of 5 Printed on 1/26/2023
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23-1447 Agenda Date: 1/31/2023
limited to:
a. Economic and market conditions
b. 1-5 AAA-A US Corporate & Government Index performances c. City interest earnings
Staff will continue to refine information and format presented in this Report following approval of this agenda report. A sample of the newly formatted Report is attached (Attachment 4) as a reference; and a sample of the City’s portfolio performance trend graph against the two referenced indices is shown below:

Securities Portfolio Yield at Cost vs Index 24-Month Average of Yield at Market
____ Securities Portfolio (yield at cost)
____ City's Benchmark Index (24-month rolling average market yield) ____ BofA 1-5 AAA-A Corp & Gov't Index (24-month rolling average market yield) The approved Investment Policy will be included in the City of Santa Clara Council Policy Manual as Council Policy 017 (Attachment 1) and published on the City’s website.

The Investment Policy (Attachment 2 - blackline and Attachment 3) as submitted is in compliance with the City Charter and applicable state law.

FISCAL IMPACT
There is no cost to the City other than administrative staff time and expense.

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23-1447 Agenda Date: 1/31/2023

COORDINATION
This report has been coordinated with the City Attorney’s Office.

RECOMMENDATION
Approve the Investment Policy for the City of Santa Clara, its agencies and corporations.

Reviewed by: Kenn Lee, Director of Finance
Approved by: Rajeev Batra, City Manager

ATTACHMENTS

1. Council Policy 017 Investment Policy: Annual Statement

2. Investment Policy 2023 (blackline)

3. Investment Policy 2023

4. Sample New Monthly Investment Report
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City of Santa Clara
Council Policy Manual
INVESTMENT POLICY: ANNUAL STATEMENT
Rev. April 2019 P&P 017 Page 1 of 2
PURPOSE To provide the framework and guidance for managing the City’s investment portfolio. It is the policy of the City of Santa Clara (City) to invest public funds, including bond proceeds, reserves and other special City funds, in a manner that maximizes safety and liquidity while earning a market rate of return commensurate with the investment risk; meets the daily cash flow demands of the City; and conforms to all state and local statutes governing the investment of public funds.

POLICY The investment policy of the City (the “Investment Policy”) is intended to provide for the prudent and efficient investment of the City's temporarily idle cash while safely maximizing returns within carefully defined investment parameters. The City shall invest public funds, including bond proceeds, reserves and other special City funds, in a manner consistent with this Investment Policy while meeting the daily cash flow demands of the City and conforming to all state and local statutes governing the investment of public funds.

Authority, Scope and Prudence
x Authority - The City Charter, Article IX, Section 904 gives the Director of Finance (the “Director”) the authority and responsibility to deposit and invest all City funds.
x Scope - The Investment Policy applies to all deposits, investments and other assets of the City, its subsidiaries, the Successor Agency for the Redevelopment Agency of the City of Santa Clara, the Sports and Open Space Authority, the Stadium Authority, and the Housing Authority. x Prudence - Employees delegated responsibility for the investment of public monies by the Director (“Investment Personnel”), as trustees of public monies, shall adhere to the “prudent investor” standard when managing the City’s funds in light of the purposes, terms, and other circumstances of the City. Investment Personnel shall refrain from engaging in any activity that impairs, or has the potential to impair, their ability to make impartial investment decisions for the City.

PROCEDURE Investment Objectives and Criteria
The primary objectives, in priority order, of the City’s investment activities shall be safety, liquidity, and yield.

Internal Controls
The City’s Finance Department shall establish internal controls that are designed to prevent losses due to fraud, negligence, third-party misrepresentation, and City of Santa Clara
Council Policy Manual
INVESTMENT POLICY: ANNUAL STATEMENT
Rev. April 2019 P&P 017 Page 2 of 2
other foreseeable circumstances that may arise in the operations of the investment function. The internal control structure shall be designed to provide reasonable assurance that these objectives are met. The concept of reasonable assurance recognizes that (1) the cost of a control should not exceed the benefits likely to be derived and (2) the valuation of costs and benefits requires estimates and judgments by management.

Reporting
The Director of Finance shall provide periodic investment reports to the City Council. The reports shall contain, but not be limited to, the following:
x A listing of individual securities held at the end of the reporting period by authorized investment category.
x The rate of return on the unrestricted investment portfolio compared to selected benchmark.
x Final maturity of all investments listed.
x Weighted average maturity of the unrestricted investment portfolio. x Coupon, discount or earnings rate.
x Par value, amortized book value and market value.
x Percentage of the portfolio represented by each investment category.

Investment Policy Adoption
The Investment Policy shall be reviewed annually by the City Council and any modifications made thereto must be approved by the City Council.

Attachments:

1. Investment Policy
CITY OF SANTA CLARA | 2023 INVESTMENT POLICY 1

CITY OF SANTA CLARA

INVESTMENT POLICY
A. Introduction
The investment policy of the City of Santa Clara (the “Investment Policy”) is intended to provide for the prudent and efficient investment of the City of Santa Clara's temporarily idle cash while safely maximizing returns within carefully defined investment parameters. The City of Santa Clara (the “City”) shall invest public funds, including bond proceeds, reserves and other special City funds, in a manner consistent with this Investment Policy while meeting the daily cash flow demands of the City and conforming to all state and local statutes governing the investment of public funds.

It is the City's full intent, at the time of purchase, to hold all investments until maturity. in order to ensure the return of all invested principal. Through the maintenance of sufficient diversification of investments of varying maturities, the forced liquidation of investments at a loss shall be avoided, if at all possible.

However, securities may be sold prior to maturity to adjust the portfolio duration or improve the risk structure, liquidity, or yield of the portfolio. economic or market conditions may change, making it in the City’s best interest to sell or trade a security prior to maturity.

For a list of terms and definitions commonly used in cash management, see “Appendix A - Glossary of Cash Management Terms”.

B. Authority, Scope and Prudence
 Authority - The City of Santa Clara Charter, Article IX, Section 904 gives the Director of Finance (the “Director”) the authority and responsibility to deposit and invest all City funds. It authorizes the Director to invest the City’s idle cash in allowable investment vehicles with a maximum remaining maturity of five years at the time of purchase. The City Council may grant express authority either specifically or as part of an approved investment program to invest in securities with remaining maturities that exceed the five-year restriction. Authority must be given to the Director at least three months prior to the investment. California Government Code Section 53601 also allows the City to invest in the same investment securities as authorized by the City Council.
 Scope - The Investment Policy applies to all deposits, investments and other assets of the City, its subsidiaries, the Successor Agency for the Redevelopment Agency of the City of Santa Clara, the Sports and Open Space Authority, the Stadium Authority, and the Housing Authority. These funds are reported in the City’s Comprehensive Annual Financial Report and include the General Fund, Special Revenue Funds, Debt Service Funds, Capital Project Funds, Trust and Agency Funds, and Enterprise Funds. Deposit of funds is in accordance with the provision of the State Constitution and the laws of the State of California (Government Code Sections 53601 and 53635) governing the handling, depositing and securing of public funds. Investment of City issued debt proceeds and debt reserve funds are separately governed by individual bond indentures adopted by the City Council.

Investment of the Forrest and Evalyne Bentzien Trust Fund is governed by the Agreement By and Between the City of Santa Clara, California and the Mission City Community Fund Regarding the Investment, Disbursement and Distribution of Funds in the Forrest and Evalyne Bentzien NonExpendable Trust Fund approved by City Council and dated July 25, 2000 (the “Bentzien Trust Fund Agreement”), and is not subject to the provisions of this Investment Policy. The Bentzien Trust Fund CITY OF SANTA CLARA | 2023 INVESTMENT POLICY 2
Agreement defines the rights and responsibilities of the City in its capacity as Trustee and the Mission City Community Fund as the beneficiary of the Trust, to assure compliance with the California Probate Code and the Evalyne Bentzien Will.
 Prudence - Employees delegated responsibility for the investment of public monies by the Director (“Investment Personnel”), as trustees of public monies, shall adhere to the “prudent investor” standard when managing the City’s funds in light of the purposes, terms, and other circumstances of the City. This standard requires the exercise of reasonable care, skill, and caution, and is to be applied to investments in the context of the total portfolio and as part of an overall investment strategy, which should incorporate risk and return objectives reasonably suitable to the City. Duties must be performed with the care, prudence and diligence that a 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 City.

Investment Personnel shall refrain from engaging in any activity that impairs, or has the potential to impair, their ability to make impartial investment decisions for the City.

Investment Personnel acting in accordance with written procedures and the Investment Policy and exercising due diligence shall be relieved of personal responsibility for an individual security’s credit risk or market price changes, provided deviations from expectations are reported in a timely fashion and appropriate action is taken to control adverse developments.

C. Investment Objectives and Criteria
The primary objectives, in priority order, of the City’s investment activities shall be:
 Safety - Safety of principal is the foremost objective of the investment program. Investment of City funds shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. The City shall diversify its investments by investing funds among a variety of financial institutions and securities offering independent returns, all in accordance with this Investment Policy.  Liquidity - The investment portfolio will remain sufficiently liquid to enable the City to meet all cash needs, which may be reasonably anticipated, for the operation of the City.  Yield - The investment portfolio shall be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, commensurate with the investment risk constraints and the cash flow characteristics of the portfolio.

D. Delegation of Authority
Authority to manage the City’s banking depository and investment program is derived from the City Charter.

Management responsibility for the banking depository and investment program is hereby delegated to the Director of Finance who shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities and procedures of Investment Personnel.

The City may engage the services of an external investment manager to assist in the management of the City's investment portfolio in a manner consistent with the City's objectives (“External Investment Manager”). The External Investment Manager may be granted discretion to purchase and sell investment securities in accordance with the State Constitution, the laws of the State of California and this Investment Policy. Any External CITY OF SANTA CLARA | 2023 INVESTMENT POLICY 3
Investment Manager must be registered under the Investment Advisers Act of 1940 and shall act as a fiduciary to the City.

E. Ethics and Conflicts of Interest
Officers and Investment Personnel involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the investment program, or impair their ability to make impartial investment decisions. Officers and Investment Personnel shall disclose in their annual conflict of interest statement all material financial interests in financial institutions that conduct business within the City, and they shall further disclose any large personal financial/investment positions that could be related to the performance of the City.

F. Authorized Financial Institutions
The Director of Finance, or his/her designee, shall maintain a list of financial institutions and broker/dealers authorized to provide investment services to the City (“Authorized Financial Institutions”). Authorized Financial Institutions must be authorized to provide investment services in the State of California and may include “primary” dealers or regional dealers that qualify under Securities & Exchange Commission Rule 15C3-1 (uniform net capital rule). No public deposit shall be made except in a qualified public depository as established by State laws.

All financial institutions and broker/dealers who desire to become an Authorized Financial Institution must provide audited financial statements, proof of required licenses or registration, and written confirmation that they have read and shall abide by the City’s Investment Policy.

Authorized Financial Institutions shall be expected to actively participate in the bid/offer process for securities in which they are market makers. In addition, it will be expected that the Authorized Financial Institutions will be able to fill the entire order being solicited and that there shall be no delay in completing the transaction on the contractual settlement date.

The Director of Finance, or his/her designee, periodically reviews the financial conditions and registrations of financial institutions and broker/dealers that deal with the City. The City is under no obligation to transact business with any financial institution and may at any time remove a financial institution from the list of Authorized Financial Institutions at the City’s discretion.

If the City has contracted with an External Investment Manager, the External Investment Manager may use their own list of approved issuers, brokers/dealers and financial institutions (“Investment Manager Authorized Institutions”) to conduct transactions on the City’s behalf. All due diligence regarding Investment Manager Authorized Institutions shall be the responsibility of the External Investment Manager, if applicable.

G. Competitive Bidding Process
When practicable, Investment Personnel of the City and any External Investment Manager shall enter into transactions for the purchase or sale of securities on a competitive bid basis, seeking offers or bids from at least three authorized broker/dealers or Investment Manager Authorized Institutions, respectively. From time to time the City may enter into transactions involving securities for which there is not an active secondary market or where other Authorized Financial Institutions do not have the security available for sale and therefore, competitive bidding is not available. If competitive bidding on a security is not practicable or possible, Investment Personnel or any External Investment Manager will seek to verify pricing by other reasonable means.

The bidding process shall be fully documented for all transactions and complete records shall be available for audit and reporting purposes.

CITY OF SANTA CLARA | 2023 INVESTMENT POLICY 4
In all cases, placement shall be made consistent with the safety, liquidity and yield objectives of this Investment Policy.

H. Authorized and Suitable Investments
Special care must be taken to ensure that the list of instruments includes only those allowed by law and those that local investment managers are trained and competent to handle. The City is empowered by the State of California Government Code and the City Charter to invest in the following types of securities. Additionally, bond proceeds are invested in accordance with the requirements outlined in the specific bond indenture of trust. All percentage limitations and credit criteria apply at time of purchase.  U.S. Treasury Bills, Notes and Bonds and Securities Guaranteed or Backed by the Full Faith and Credit of the U.S. Government
Maximum Holdings = 100% of portfolio dollars
Maximum per Issuer = 100% of portfolio dollars
Maximum Maturity = 7 year final maturity
 U.S. Government Agency Securities (exclusive of Agency MBS or CMO Securities, see below category) such as the Federal Home Loan Bank (FHLB), the Federal National Mortgage Association (FNMA), the Federal Home Loan Mortgage Corporation (FHLMC), the Federal Farm Credit Bank (FFCB), local agencies, and other U. S. government-sponsored enterprises. These investments must be rated in the top three rating categories by two of the three largest nationally recognized statistical rating organizations (NRSROs).

Maximum Holdings = 80% of portfolio dollars
Maximum per Issuer = 40% of portfolio dollars
Maximum Callable = 30% of portfolio dollars
Maximum Maturity = 7 year final maturity
 Mortgage-Backed Securities (MBS) and Collateralized Mortgage Obligations (CMO) issued or guaranteed by the United States of America or any agency or instrumentality (including government sponsored enterprises) of the United States of America. Defined as a mortgage passthrough security, collateralized mortgage obligation, or mortgage-backed bond). Securities eligible for investment under this subdivision shall be rated AA or its equivalent or better by an NRSRO and rated no lower than AA by any NRSRO.

Maximum Holdings = 15% of portfolio dollars
Maximum per Issuer = 5% of portfolio dollars
Maximum Weighted Average Life with Current Public Securities Association (PSA) Prepayment Assumptions = 12 years at time of purchase for MBS and 6 years at time of purchase for CMO Maximum Final Maturity for MBS’s and CMO’s = 30 years with balloon payments considered final At the time of purchase, a CMO must pass the “high-risk” test, using current prepayment assumptions, mandated by the Federal Financial Institution Examination Council (the “FFIEC”) for U.S. Depository Institution investment holdings. Prohibited CMO securities are Interest Only (IO), Principal Only (PO), Residuals and Inverse Floaters. CMO issues must be a Sequential Pay (SEQ), a Planned Amortization Class (PAC), a Very Accurately Defined Maturity (VADM) class or a pass-through CMO.

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 Negotiable Certificates of Deposit issued by a nationally or state-chartered bank, a savings association or a federal association, a state or federal credit union, or by a federally licensed or by a state-licensed branch of a foreign bank. CDs eligible for investment under this subdivision shall be rated A or its equivalent or better by at least one NRSRO and no lower than A by any NRSRO or if the CD has a maturity less than 1 year then shall be rated A-1 or better by at least one NRSRO and rated no lower than A-1 by any NRSRO.

Maximum Holdings = 30% of portfolio dollars
Maximum per Issuer = 5% of portfolio dollars
Maximum Maturity = 5 year final maturity
 Bankers Acceptances otherwise known as bills of exchange or time drafts that are drawn on and accepted by a commercial bank.

Maximum Holdings = 25% of portfolio dollars
Maximum per Issuer = 5% of portfolio dollars
Maximum Maturity = 180 days
 Commercial Paper of "prime” quality of the highest ranking or of the highest letter and numerical rating as provided for by an NRSRO. The entity that issues the commercial paper shall meet all of the conditions in either paragraph (1) or (2) below:

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 program-wide 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.

Maximum Holdings = 25% of portfolio dollars
Maximum per Issuer = 5% of portfolio dollars and no more than 10% of the outstanding commercial paper of any single issuer
Maximum Maturity = 270 days
 Local Agency Investment Fund of the State of California. Purchases may be made up to the maximum amount allowed by the State of California. Securities owned in the Local Agency Investment Fund of the State of California will not count towards maximum percentages of other categories.  Repurchase Agreements subject to requirements of the California Government Code Section 53601(j). A Master Repurchase Agreement must be signed with the counterparty. The market value of securities that underlay a repurchase agreement shall be maintained at 102 percent or greater of the funds borrowed against those securities and the value shall be adjusted on a daily basis.

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Maximum Holdings = 50% of portfolio dollars
Maximum per Issuer = 20% of portfolio dollars
Maximum Maturity = 60 days
 Reverse Repurchase Agreements. Reverse repurchase agreements with the prior approval of the City Council and subject to requirements of the California Government Code Sections 53601(j).

Maximum Holdings = 20% of portfolio dollars
Maximum per Issuer = 10% of portfolio dollars
Maximum Maturity = 92 days
 Municipal Obligations, including: (1) bonds, notes, warrants and other evidences of indebtedness of any local agency within California, 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, (2) registered state warrants or treasury notes or bonds of the state of California, 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, and (3) 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. These investments shall be rated A or its equivalent or better by at least one NRSRO and rated no lower than A by any NRSRO.

Maximum Holdings = 20% of portfolio dollars
Maximum per Issuer = 5% of portfolio dollars
Maximum Maturity = 7 year final maturity
 Medium Term Corporate Notes defined as all corporate and depository institution debt securities 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 A or its equivalent or better by at least one NRSRO and rated no lower than A- by any NRSRO.

Maximum Holdings = 25% of portfolio dollars
Maximum per Issuer = 5% of portfolio dollars
Maximum Maturity = 5 year final maturity
 Mutual Funds and Money Market Funds consisting of investment vehicles permitted under Sections 53601 and 53635 of the California Government Code. To be eligible for City investments, mutual funds shall have the following:

1. The highest rating provided by not less than two of the three largest NRSROs.

2. An investment advisor registered with the Securities and Exchange Commission for not less than five years having investment experience in the underlying securities and with assets under management in excess of $500 million.

3. The purchase price of the shares shall not include any commission fees.

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Money Market Funds must meet either 1 or 2 above and 3. A thorough analysis of the pool/fund is required prior to investing, and on a continual basis. Analysis shall include creditworthiness, size, safety, ease of investment liquidation, frequency of earnings distributions, frequency of account statements, and investment portfolio strategy. Securities owned in mutual funds and investment pools will not count towards maximum percentages of other categories.

Maximum Holdings = 20% of portfolio dollars
Maximum per Fund = 10% of portfolio dollars
 Joint Powers Authority Investment Pools organized pursuant to Section 6509.7 that invests in the securities and obligations under Sections 53601 of the California Government Code. To be eligible for City investments, 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 under Section 53601.

3. The adviser has assets under management in excess of $500 million.

Maximum Holdings = 100% of portfolio dollars
Maximum per Issuer = 100% of portfolio dollars
 Supranational Obligations defined as 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, and eligible for purchase and sale within the United States. Investments under this subdivision shall be rated AA or its equivalent or better by an NRSRO and rated no lower than AA by any NRSRO.

Maximum Holdings = 20% of portfolio dollars
Maximum per Issuer = 10% of portfolio dollars
Maximum Maturity = 5 year final maturity
 Asset-Backed Securities defined as an equipment lease-backed certificate, consumer receivable passthrough certificate, or consumer receivable-backed bond. Securities eligible for investment under this subdivision shall be rated AA or its equivalent or better by an NRSRO and rated no lower than AA by any NRSRO.

Maximum Holdings = 10% of portfolio dollars
Maximum per Issuer = 5% of portfolio dollars
Maximum Maturity = Maximum remaining maturity of 5 years or less  Non-negotiable Certificates of Deposit of a public bank, as defined in State of California Government Code Section 57600 and pursuant to collateralization requirements of this Investment Policy.

Maximum Holdings = 10% of portfolio dollars
Maximum per Issuer = 5% of portfolio dollars
Maximum Maturity = 5 year final maturity
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I. Sustainable Investing
The City desires to invest in entities that support community well-being through environmentally and socially sound practices and fair labor practices and equality of rights regardless of sex, race, age, disability, or sexual orientation. To meet these environmental and social investment goals the City or External Investment Manager shall apply the following criteria to investment selection:

The City’s portfolio shall not include investment in companies in the following industries or subindustries as classified by a global standard taxonomy such as the Global Industry Classification Standard (GICS) or Bloomberg Industry Classification System (BICS) :
 Fossil Fuel Extraction, Refining, and Distribution
 Tobacco Manufacturing and Production
 Firearms Manufacturing
J. Security Downgrades
If securities owned by the City are downgraded to a level below the quality required for purchase under this Investment Policy, the Director of Finance, or his/her designee, shall review the credit situation and make a determination as to whether to sell or retain such securities in the portfolio. Such determination shall be documented and approved by the Director of Finance.

K. Collateralization
Collateralization with marketable securities will be required on non-negotiable certificates of deposit and repurchase (and reverse repurchase) agreements in accordance with California Government Code Section 53601 and 53630 et seq. In order to anticipate market changes and provide a level of security for all funds, the collateralization level shall be at least 102% of market value of principal and accrued interest for repurchase (and reverse repurchase) agreements and at least 110% of market value for non-negotiable certificates of deposit.

The City reserves the right to require additional collateral if the City believes such additional amount is warranted.

The City may waive the collateralization requirements for any portion of the deposit that is covered by Federal Deposit Insurance.

Collateral shall always be held by an independent third party with whom the City or the counterparty has a current custodial agreement. Clearly marked evidence of ownership (safekeeping receipt) must be supplied to the City and retained. The counterparty shall have the right to substitute substantially the same securities as originally deposited as collateral.

L. Safekeeping and Custody
All security transactions, including collateral for repurchase agreements, entered into by the City shall be conducted on a delivery-versus-payment (DVP) basis. Securities shall be held by a third party custodian designated by the Director of Finance, or his/her designee, and evidenced by safekeeping receipts.

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M. Diversification
The City will diversify its investments by security type and institution. Maximum percentage holdings for each security type and institution shall conform to this Investment Policy and the maximum allowed under the California Government Code Section 53601.

The minimum percentage of securities portfolio holdings for U.S. Treasury Bills, Notes and Bonds and Securities Guaranteed or Backed by the Full Faith and Credit of the U.S. Government; U.S. Government Agency Securities (not including MBS and CMO), and Municipal Obligations shall be 30%.

All percentage restrictions on authorized investments are based on the amortized cost value of the portfolio as of the trade date of the investment. In the event that portfolio percentage restrictions are violated due to a reduction in cost value of the portfolio, the City may, but will not be required to, liquidate securities to meet the maximum holdings requirements.

N. Maximum Term of Investment
To the extent possible, the City will attempt to match its investments with anticipated cash flow requirements.

The City will not directly invest in securities maturing more than five years from the date of purchase without Council approval in accordance with State of California Government Code Section 53601. Effective three months following City Council approval of the 2022 Investment Policy, the City Council authorizes the purchase of (a) U.S. Treasury Bills, Notes and Bonds and Securities Guaranteed or Backed by the Full Faith and Credit of the U.S. Government, (b) U.S. Government Agency Securities (not including MBS and CMO), and (c) Municipal Obligations, respectively, with a maximum maturity of seven (7) years. The City Council authorizes the purchase of MBS and CMO with a maximum weighted average life with current PSA prepayment assumptions of up to twelve (12) years at time of purchase for MBS and six (6) years at time of purchase for CMO, respectively, each with a maximum final maturity of thirty (30) years. For purposes of compliance with this Policy, an investment’s term or remaining maturity shall be measured from the settlement date to final maturity. A security purchased shall not have a forward settlement date exceeding 45 days from the time of investment.

No greater than 30% of the portfolio’s cost value may include securities with a final maturity greater than five (5) years at any time.

O. Internal Controls
The City’s Finance Department shall establish internal controls that are designed to prevent losses due to fraud, negligence, third-party misrepresentation, and other foreseeable circumstances that may arise in the operations of the investment function. The internal control structure shall be designed to provide reasonable assurance that these objectives are met. The concept of reasonable assurance recognizes that (1) the cost of a control should not exceed the benefits likely to be derived and (2) the valuation of costs and benefits requires estimates and judgments by management.

The internal controls shall address the following points:
 Collusion - Collusion is a situation where two or more employees are working together to defraud their employer.
 Separation of duties - By separating the persons who perform and authorize the transactions from the people who record or otherwise account for the transactions, a separation of duties is achieved.

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 Safekeeping - Securities purchased from any broker or dealer shall be placed with the City’s depository bank in its trust department for safekeeping. Securities shall be held in a manner that establishes the City’s right of ownership. Evidence of ownership shall be demonstrated by a monthly safekeeping statement which shall be reconciled on a timely basis to internal holding reports.  Clear Delegation of Authority - Subordinate staff members must have a clear understanding of their authority and responsibility to avoid improper actions.  Written Confirmation - Due to the potential for error arising from telephone transactions, all telephone transactions shall be supported by written communications and approved by appropriate Investment Personnel.
 Delivery - Where applicable, investment transactions of the City shall be conducted using standard delivery-vs-payment procedures.
 Daily Procedures - Detailed written procedures shall be created and regularly maintained so that critical investment functions may be performed in the absence of the person normally responsible for performing such work. The procedures should include reference to custody and safekeeping, wire transfer agreements, banking service contracts and collateral/depository agreements. Such procedures shall include explicit delegation of authority to persons responsible for investment transactions. No person may engage in a depository or investment transaction except as provided under the terms of this Investment Policy and the procedures established by the Director of Finance.  Annual Audit - On an annual basis, the City’s financial statements and business practices are audited by an external auditor. Included in the annual audit shall be testing of the City’s compliance with the Investment Policy.

P. Performance Standard
As preservation of capital is the City’s top priority, the City’s investment strategy shall assume that an investment is being held to maturity or other redemption date as set forth in the security’s official offering documentation (i.e., callable securities). Trading in response to economic conditions and market valuations will be permitted in response to changing market conditions; to improve the quality, yield, or target duration in the portfolio; address a liquidity need of the portfolio; or to remove a security with a declining credit or financial outlook.

The City also recognizes the importance of obtaining an adequate rate of return throughout budgetary and economic cycles, commensurate with the investment risk constraints and cash flow requirements. The performance of the long-term securities portfolio managed by External Investment Manager shall be compared to a benchmark established by the Director of Finance. The benchmark shall reflect the objectives, strategy, and goals of the City’s investment program.
 The benchmark is the ICE BaML 1-5 Year US Treasury Index.

Full implementation of this benchmark will be effective July 1, 2022.

In accordance with generally accepted accounting principles, the City or the External Investment Manager, if any, shall mark-to-market investments on a monthly basis using an independent pricing source. Market values will be looked upon as indications of market movements and volatility in making investment decisions rather than an indication of performance.

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Q. Reporting
The Director of Finance shall provide periodic investment reports to the City Council. The reports shall contain, but not be limited to, the following:
 A listing of individual securities held at the end of the reporting period by authorized investment category.
 The performance of the portfolio compared to the established benchmark.  Final maturity of all investments listed.
 Weighted average maturity of the unrestricted investment portfolio.  Coupon, discount or earnings rate.
 Par value, amortized cost value and market value.
 Percentage of the portfolio represented by each investment category.

R. Investment Policy Adoption
The Investment Policy shall be reviewed annually by the City Council and any modifications made thereto must be approved by the City Council.

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APPENDIX A

GLOSSARY OF CASH MANAGEMENT TERMS
AGENCIES: A debt security issued by a federal or federally sponsored agency. Federal agencies are backed by the full faith and credit of the U.S. Government. Federally sponsored agencies (FSAs) are backed by each particular agency with a market perception that there is an implicit government guarantee. An example of a federal agency is the Government National Mortgage Association (GNMA). An example of an FSA is the Federal National Mortgage Association (FNMA).

ASK: The price at which securities are offered.

BANKERS’ ACCEPTANCE (BA): A draft or bill of exchange accepted by a bank or trust company. The accepting institution guarantees payment of the bill, as well as the issuer.

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

COST VALUE: The value at which a security is carried on the financial records of an investor. The cost value may differ significantly from the security's current value in the market.

BROKER: A broker brings buyers and sellers together for a commission.

CALLABLE BOND: A bond issue in which all or part of its outstanding principal amount may be redeemed prior to maturity by the issuer under specified conditions.

CALL PRICE: The price at which an issuer may redeem a bond prior to maturity.

CERTIFICATE OF DEPOSIT (CD): A time deposit with a specific maturity evidenced by a certificate. Largedenomination CD’s are typically negotiable.

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.

COMMERCIAL PAPER: Short-term obligations with maturity ranging from 2 to 270 days issued by banks, corporations, and other borrowers to investors with temporarily idle cash. Such instruments are unsecured and usually discounted, although some are interest-bearing.

COUPON: Interest rate on a debt security the issuer promises to pay to the holder until maturity, expressed as an annual percentage of face value.

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

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DELIVERY VERSUS PAYMENT (DVP): 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.

DERIVATIVES: (1) 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, (2) financial contracts based upon notional amounts whose value is derived from an underlying index or security (interest rates, foreign exchange rates, equities or commodities).

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 RATE: Interest rate that the Federal Reserve charges member banks for loans, using government securities or eligible paper as collateral.

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

DISCOUNT YIELD: Yield on a security sold at a discount.

DIVERSIFICATION: Dividing investment funds among a variety of securities offering independent returns.

FEDERAL DEPOSIT INSURANCE CORPORATON (FDIC): A federal agency that insures bank deposits.

FEDERAL FUNDS (FED FUNDS): Funds placed in Federal Reserve banks by depository institutions in excess of current reserve requirements. These depository institutions may lend Fed Funds to each other overnight or on a longer term basis. Depository institutions may also transfer funds among each other on a same-day basis through the Federal Reserve banking system. Fed Funds are considered to be immediately available funds.

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

FEDERAL HOME LOAN BANKS (FHLB): Government sponsored wholesale banks which lend funds and provide correspondent banking services to member commercial banks, thrift institutions, credit unions and insurance companies. The mission of the FHLBs is to liquefy the housing related assets of its members who must purchase stock in their district Bank.

FEDERAL FARM CREDIT BANK (FFCB): The Federal Farm Credit Banks Funding Corporation is an integral part of the Farm Credit System, a leading provider of loans, leases and services to U.S. agriculture and rural America. FFCB is a government-sponsored enterprise that consolidates the financing activities of the Federal Land Banks, the Federal Intermediate Credit Banks, and the Banks for Cooperatives.

FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC): A publicly chartered agency that buys qualifying residential mortgages from lenders, packages them into new securities backed by those pooled mortgages, provides certain guarantees, and then resells the securities on the open market. FHLMC’s stock is owned by savings institutions across the U.S. and is held in trust by the FHLB System.

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FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA or Fannie Mae): 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. FNMA assumes and guarantees that all security holders will receive timely payment of principal and interest.

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.

FEDERAL RESERVE SYSTEM: 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.

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 holders are protected by the full faith and credit of the U.S. Government.

Ginnie Mae securities are backed by the FHA, VA or FmHA mortgages. The term “pass-throughs” is often used to describe Ginnie Maes.

GUARANTEED INVESTMENT CONTRACT (GIC): A contract between an insurance company and a corporate profit-sharing or pension plan that guarantees a specific rate of return on the invested capital over the life of the contract.

IDLE FUNDS: Money in the treasury not required for the immediate needs of the local agency.

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

LIQUIDITY: A liquid asset is one that can be converted easily and rapidly into cash without a substantial loss of value. In the money market, a security is said to be liquid if the spread between bid and asked prices is narrow and reasonable size can be done at those quotes.

MARKET VALUE: The price at which a security is trading and could presumably be purchased or sold.

MASTER REPURCHASE AGREEMENT: A written contract covering all future transactions between the parties to repurchase---reverse repurchase agreements that establishes each party’s rights in the transactions. A master agreement often specifies, among other things, the right of the buyer-lender to liquidate the underlying securities in the event of default by the seller-borrower.

MATURITY: The date upon which the principal or stated value of an investment becomes due and payable.

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MONEY MARKET: The market in which short-term debt instruments (bills, commercial paper, banker’s acceptances, etc.) are issued and traded.

NATIONALLY RECOGNIZED STATISTICAL RATING ORGANIZATION (NRSRO): A credit rating agency that issues credit ratings that the U.S. Securities and Exchange Commission permits other financial firms to use for certain regulatory purposes.

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

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.

PREMIUM: The amount by which the price paid for a security exceeds the security's par value.

PORTFOLIO: A combined holding of a variety of investments. The purpose of a portfolio is to reduce risk by diversification.

PRIMARY DEALER: A group of government securities dealers who submit daily reports of market activity and positions and monthly financial statements to the Federal Reserve Bank of New York and are subject to its informal oversight. Primary dealers include the Securities and Exchange Commission (SEC)-registered securities brokerdealers, banks, and a few unregulated firms.

PRIMARY MARKET: A market for new issues of securities. A market is primary if the proceeds of sales go to the issuer of the securities sold.

PRIME RATE: A preferred interest rate charged by commercial banks to their most creditworthy customers.

Many interest rates are keyed to this rate.

PRINCIPAL: The face value or par value of a debt instrument.

PRUDENT INVESTOR RULE: A guideline that states that a fiduciary must consider the needs of the beneficiaries, the provision of regular income, minimize risk and preserve assets. The Prudent Investor Rule applies to the investment decision-making process and no single investment decision should be judged in isolation, but rather as part of the entire portfolio. The Prudent Investor Rule mandates fiduciaries apply the principle of diversification when constructing portfolios.

RATE OF RETURN: The yield obtainable on a security based on its purchase price or its current market price.

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/her for this.

Dealers use RP extensively to finance their positions. Exception: When the Fed is said to be doing RP, it is lending money that is, increasing bank services.

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SAFEKEEPING: A service to customers rendered by banks for a fee whereby securities and valuables of all types and descriptions are held in the bank’s vault for protection.

SECONDARY MARKET: A market made for the purchase and sale of outstanding issues following the initial distribution.

SECURITIES AND EXCHANGE COMMISSION: Agency created by Congress to protect investors in securities transactions by administering securities legislation.

STRUCTURED NOTES: Notes issued by Government Sponsored Enterprises (FHLB, FNMA, etc.) and Corporations that have imbedded options (e.g., call features, step-up coupons, floating rate coupons, derivativebased 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.

TREASURY BILLS: A non-interest bearing discount security issued by the U.S. Treasury to finance the national debt. Most bills are issued to mature in three months, six months or one year.

TREASURY BONDS: Long-term coupon-bearing U.S. Treasury securities issued as direct obligations of the U.S.

Government and having initial maturity more than ten years.

TREASURY NOTES: Medium-term coupon-bearing U.S. Treasury securities issued as direct obligations of the U.S. Government and having initial maturity from two to ten years.

WEIGHTED AVERAGE MATURITY (WAM): The average maturity of all the securities that comprise a portfolio.

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 the purchase price, with the adjustment spread over the period from the date of purchase to the date of maturity of the bond.

YIELD-TO-CALL (YTC): The rate of return an investor earns from a security assuming the security is redeemed (called) prior to its stated final maturity date.

YIELD-TO-MATURITY (YTM): The rate of return an investor earns on a security held to maturity when both interest payments and the investor's potential capital gain or loss are included in the calculation of return.

City of Santa Clara
2023
Investment Policy
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CITY OF SANTA CLARA

It is the City's full intent, at the time of purchase, to hold all investments until maturity. Through the maintenance of sufficient diversification of investments of varying maturities, the forced liquidation of investments at a loss shall be avoided, if at all possible. However, securities may be sold prior to maturity to adjust the portfolio duration or improve the risk structure, liquidity, or yield of the portfolio.

For a list of terms and definitions commonly used in cash management, see “Appendix A - Glossary of Cash Management Terms”.

Investment of the Forrest and Evalyne Bentzien Trust Fund is governed by the Agreement By and Between the City of Santa Clara, California and the Mission City Community Fund Regarding the Investment, Disbursement and Distribution of Funds in the Forrest and Evalyne Bentzien NonExpendable Trust Fund approved by City Council and dated July 25, 2000 (the “Bentzien Trust Fund Agreement”), and is not subject to the provisions of this Investment Policy. The Bentzien Trust Fund Agreement defines the rights and responsibilities of the City in its capacity as Trustee and the Mission CITY OF SANTA CLARA | 2023 INVESTMENT POLICY 2
City Community Fund as the beneficiary of the Trust, to assure compliance with the California Probate Code and the Evalyne Bentzien Will.
 Prudence - Employees delegated responsibility for the investment of public monies by the Director (“Investment Personnel”), as trustees of public monies, shall adhere to the “prudent investor” standard when managing the City’s funds in light of the purposes, terms, and other circumstances of the City. This standard requires the exercise of reasonable care, skill, and caution, and is to be applied to investments in the context of the total portfolio and as part of an overall investment strategy, which should incorporate risk and return objectives reasonably suitable to the City. Duties must be performed with the care, prudence and diligence that a 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 City.

Investment Personnel shall refrain from engaging in any activity that impairs, or has the potential to impair, their ability to make impartial investment decisions for the City.

D. Delegation of Authority
Authority to manage the City’s banking depository and investment program is derived from the City Charter.

The City may engage the services of an external investment manager to assist in the management of the City's investment portfolio in a manner consistent with the City's objectives (“External Investment Manager”). The External Investment Manager may be granted discretion to purchase and sell investment securities in accordance with the State Constitution, the laws of the State of California and this Investment Policy. Any External Investment Manager must be registered under the Investment Advisers Act of 1940 and shall act as a fiduciary to the City.

CITY OF SANTA CLARA | 2023 INVESTMENT POLICY 3
E. Ethics and Conflicts of Interest
Officers and Investment Personnel involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the investment program, or impair their ability to make impartial investment decisions. Officers and Investment Personnel shall disclose in their annual conflict of interest statement all material financial interests in financial institutions that conduct business within the City, and they shall further disclose any large personal financial/investment positions that could be related to the performance of the City.