City Council and Concurrent Authorities
June 20, 2023

City Council/Successor Agency to the
Redevelopment Agency/Public
Financing Authority/Parking Authority
Concurrent
City of Stockton
Meeting Agenda - - Revised
City Council/Successor
Agency of the
Redevelopment
Agency/Public Financing
Authority/Parking Authority
Concurrent Agenda
Council Chamber, City Hall, 425 N. El Dorado
Street, Stockton CA
4:00 PMTuesday, June 20, 2023
Closed Session 4:00 PM :: Regular Session 5:30 PM
Note: Councilmember Susan Lenz will participate in the meeting via teleconference from the following location: Westin, Lobby, 270 West 42nd St. New York, New York 10036

1. CLOSED SESSION CALL TO ORDER/ROLL CALL

2. ADDITIONS TO CLOSED SESSION AGENDA

3. ANNOUNCEMENT OF CLOSED SESSION

3.1 23-0528

CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION
Number of Cases: One
Name of Case: Kurt Wilson v. City Council of Stockton, et al. (San Joaquin County Superior Court Case No.

STK-CV-UVM-2019-12404)
This Closed Session is authorized pursuant to section 54956.9(d) (1) of the Government Code.

Department: City Attorney

3.2 23-0529 CONFERENCE WITH LABOR NEGOTIATOR
Recommended Action: Agency Designated Representative: City Manager Harry Black Employee Organizations: Unrepresented Units, Stockton City Employees' Association, Operating Engineer's Local 3, Mid-Management/Supervisory Level Unit, Unrepresented Management/Confidential, Law Department, Stockton Police Management Association, Stockton Firefighters Local 456 International Association of Firefighters, Stockton Fire Management, Stockton Police Officers' Association (SPOA)
This Closed Session is authorized pursuant to section 54957.6(a) of the Government Code.

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Department: City Attorney

3.3 23-0532 PUBLIC EMPLOYEE PERFORMANCE EVALUATION:

Recommended Action: City Manager

This Closed Session is authorized pursuant to Government Code section 54957.

Department: City Attorney

3.4 23-0534 PUBLIC EMPLOYEE PERFORMANCE EVALUATION:

Recommended Action: City Attorney

This Closed Session is authorized pursuant to Government Code section 54957.

Department: City Attorney

3.5 23-0536 PUBLIC EMPLOYEE PERFORMANCE EVALUATION:

Recommended Action: City Clerk

This Closed Session is authorized pursuant to Government Code section 54957.

Department: City Attorney

3.6 23-0538 CONFERENCE WITH LEGAL COUNSEL - POTENTIAL LITIGATION Number of Cases: One
Based on existing facts and circumstances, there is significant exposure to litigation pursuant to Government Code section 54956.9(d)(2).

Department: City Attorney

4. CLOSED SESSION PUBLIC COMMENT*

5. RECESS TO CLOSED SESSION

6. REGULAR SESSION CALL TO ORDER/ROLL CALL

7. INVOCATION/PLEDGE TO FLAG

8. REPORT OF ACTION TAKEN IN CLOSED SESSION

9. ADDITIONS TO REGULAR SESSION AGENDA***

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10. RECOGNITIONS, ANNOUNCEMENTS, OR REPORTS

11. PUBLIC COMMENTS* – MATTERS NOT ON THE AGENDA

12. CONSENT AGENDA

12.1 23-0475

ACCEPT AND APPROVE AMENDMENTS TO THE CITY OF
STOCKTON’S INVESTMENT POLICY NO. 17.01.030
Recommended Action: RECOMMENDATION
It is recommended that the City Council approve a motion to amend City Policy No 17.01.030 "City Investment Policy" as presented in Attachment A.

It is further recommended that the City Manager be authorized to take appropriate and necessary action to carry out the purpose and intent of the motion.

Department: Administrative Services
Attachment A - Proposed Investment Policy 17.01.030
Attachment B - City Council Policy Chapter 5.03
Attachment C - Redlined Investment Policy 17.01.030
Attachments:

12.2 23-0615 ADOPT A RESOLUTION APPROVING THE DISPLAY OF THE PRIDE

FLAG IN COMMEMORATION OF PRIDE MONTH
Recommended Action: RECOMMENDATION
It is recommended that the City Council adopt a resolution authorizing the City of Stockton to display the Pride Flag from June 21, 2023, to June 28, 2023, in commemoration of Pride Month.

Department: City Clerk
Proposed Resolution - Pride Flag DisplayAttachments:

12.3 23-0576 ADOPT AN ORDINANCE AMENDING TITLE 2, CHAPTER 2.94 OF

THE STOCKTON MUNICIPAL CODE REGARDING THE STOCKTON

ARTS COMMISSION, ADDING A YOUTH COMMISSIONER,

REMOVING THE PUBLIC ART STANDING COMMITTEE, AND

APPROVING STOCKTON ARTS COMMISSION ANNUAL PLAN FOR
FISCAL YEAR 2023-24.

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Recommended Action:

RECOMMENDATION
It is recommended that the City Council approve a motion to:

1. Adopt an Ordinance amending Title 2, Chapter 2.94, of the Stockton Municipal Code (SMC) relating to the Stockton Arts Commission to add a Youth Commissioner and remove the requirement for the Public Art Standing Committee.

2. Approve the Stockton Arts Commission (Commission) Annual Plan for Fiscal Year 2023-24.

3. Authorize the City Manager, or designee, to take all appropriate and necessary actions to carry out the purpose and intent of the motion.

Department: Community Services
Attachment A - Proposed Commission Annual Plan for FY2023-24 Attachment B - Proposed Ordinance - redline
Proposed Ordinance
Attachments:

12.4 23-0557 RESOLUTION APPOINTING ANUIT ALBAHAR TO THE STOCKTON

ARTS COMMISSION
Recommended Action: RECOMMENDATION
It is recommended that the City Council adopt a resolution to:

1. Appoint Anuit Albahar to the Stockton Arts Commission with term to commence immediately upon approval.

2. Authorize the City Manager to take whatever actions are appropriate and necessary to carry out the purpose and intent of this Resolution.

Department: Community Services
Attachment A - SAC Candidate Application - Redacted
Proposed Resolution
Attachments:

12.5 23-0506 AUTHORIZE THE CITY MANAGER TO EXECUTE A COOPERATIVE

AGREEMENT WITH ASSURED TECHNOLOGY, TO INSTALL A NEW

CLOSED-CIRCUIT TV AND ACCESS CONTROL SYSTEM AT THE

STOCKTON ARENA, BANNER ISLAND BALLPARK, AND BOB

HOPE THEATRE

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Recommended Action:

RECOMMENDATION
It is recommended that the City Council by motion:

1. Approve a cooperative purchasing agreement between the City of Stockton and Assured Technology, through the California Multiple Award Schedule (CMAS), for the purchase and installation of a new Closed-Circuit TV (CCTV) and Access Control System for the following City owned Venues:
a. Stockton Arena
b. Banner Island Ballpark
c. Bob Hope Theatre

2. Approve findings which support and justify an exception to the competitive bidding process pursuant to SMC Section 3.68.070(A)(5), using a Cooperative purchasing agreement through other governmental jurisdictions or public agencies; and

3. Authorize the City Manager, or designee, to take necessary and appropriate actions to carry out the purpose and intent of this motion.

Department: Economic Development
Attachment A - CMAS Cooperative Purchase Agreement
Attachment B - Resolution No. 2021-11-16-1501
Attachments:

12.6 23-0498 APPROVE A MOTION TO AUTHORIZE A PROFESSIONAL SERVICES AGREEMENT WITH DR. JOHNSTON CO, MD OF CO

OCCUPATIONAL MEDICAL PARTNERS FOR MEDICAL DIRECTOR

SERVICES
Recommended Action:

RECOMMENDATION
It is recommended that the City Council approve a motion to:

1. Authorize the City Manager to execute a five-year professional services agreement in the amount of $117,500 with Dr. Johnston Co, MD of Co Occupational Medical Partners to serve as Medical Director for the Stockton Fire Department.

2. Approve findings pursuant to Stockton Municipal Code section 3.68.070 in support of an exception to the competitive bidding process.

3. Authorize the City Manager to take appropriate and necessary actions to carry out the purpose and intent of this motion.

Department: Fire
Attachment A - Medical Director AgreementAttachments:

5 June 20, 2023City Council/Successor Agency to
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12.7 23-0484

APPROVE MOTION TO EXECUTE A ONE-TIME PURCHASE FROM

SIRCHIE ACQUISITIONS, LLC FOR THE SIRCHIE MOBILE CRIME
LAB VEHICLE 550-18F (MCL550-18F) IN AN AMOUNT NOT TO
EXCEED $248,388
Recommended Action:

RECOMMENDATION
It is recommended that the City Council approve a motion to:

1. Authorize the City Manager to execute a one-time purchase from Sirchie Acquisitions, LLC (Sirchie);

2. Approve findings pursuant to Stockton Municipal Code section 3.68.070 in support of an exception to the competitive bidding process; and

3. It is further recommended that the City Manager be authorized and directed to make any and all expenditures and appropriations on behalf of the City as appropriate and necessary to carry out the purpose and intent of this motion.

Department: Police
Attachment A - Sirchie Sole Source Letter
Attachment B - Sirchie Vehicle Quote
Attachment C - Standard Agreement
Attachments:

12.8 23-0548 APPROVE MOTION TO EXECUTE A THREE-YEAR CONTRACT WITH TWO (2) ONE YEAR OPTIONS TO EXTEND WITH HARD LUCK

ANIMAL WELFARE ADVOCATES, AND THE CITY OF STOCKTON IN
AN AMOUNT NOT TO EXCEED $4,970,704
Recommended Action:

RECOMMENDATION
It is recommended that the City Council approve a motion to:

1. Authorize the City Manager to execute a three-year contract with two (2) one- year options to extend between the City of Stockton (City) and Hard Luck Animal Welfare Advocates (HLAWA), for on-site veterinarian service for a total contract amount not to exceed $4,970,704

2. It is further recommended that the City Manager is hereby authorized and directed to make any and all expenditures and appropriations on behalf of the City as appropriate and necessary to carry out the purpose and intent of this motion.

3. Approve findings which support and justify an exception to the competitive bidding process pursuant to Stockton Municipal code section

3.68.070(A)(3). where the City held a competitive Request for Proposals.

Department: Police
Attachment A - Hard Luck Animal Welfare AdvocatesAttachments:

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12.9 23-0562

APPROVE MOTION TO EXECUTE AN EMERGENCY FOUR-MONTH

MEMORANDUM OF UNDERSTANDING WITH THE ANIMAL

PROTECTION LEAGUE FOR SHELTERING SERVICES, NOT TO
EXCEED $309,760
Recommended Action:

RECOMMENDATION
It is recommended that the City Council approve a motion to:

1. Authorize the City Manager to execute an emergency four-month Memorandum of Understanding (MOU) with the Animal Protection League (APL) to provide sheltering services, at a not-to-exceed cost of $309,760; and

2. Authorize and direct the City Manager to make any and all expenditures and appropriations on behalf of the City of Stockton (City) as appropriate and necessary to carry out the purpose and intent of this motion.

Department: Police
Attachment A - MOU - Animal Protection LeagueAttachments:

Note: This item was revised on June 15, 2023 by the Police Department

12.10 23-0412 ADOPT RESOLUTION TO AUTHORIZE THE LOCAL STREET RESURFACING PROGRAM FY 2022-23 SB1 - PAVEMENT REPAIR

PROJECT
Recommended Action:

RECOMMENDATION
It is recommended that the City Council adopt a resolution to:

1. Approve Notice of Exemption No. NOE8-23 under the California Environmental Quality Act for the Local Street Resurfacing Program FY 2022-23 SB1 - Pavement Repair, Project No. WD23003.

2. Approve the plans and specifications for the Local Street Resurfacing Program FY 2022-23 SB1 - Pavement Repair, Project No. WD23003.

3. Award a Construction Contract in the amount of $405,435 to Consolidated Engineering, Inc. of Valley Springs, CA, for the Local Street Resurfacing Program FY 2022-23 SB1 - Pavement Repair, Project No.

WD23003.

It is also recommended that the City Manager be authorized to take appropriate and necessary actions to carry out the purpose and intent of this resolution.

Department: Public Works

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Meeting Agenda - - Revised
Attachment A - Vicinity Map
Proposed Resolution
Exhibit 1 - Notice of Exemption
Exhibit 2 - Construction Contract
Attachments:

13. ADMINISTRATIVE MATTERS

14. UNFINISHED BUSINESS

15. NEW BUSINESS

15.1 23-0366

ADOPT RESOLUTION TO AUTHORIZE THE CITYWIDE TREE

MAINTENANCE PROJECT
Recommended Action: RECOMMENDATION
It is recommended that the City Council adopt a resolution to:

1. Approve the Notice of Exemption No. NOE32-22 under the California Environmental Quality Act for the Citywide Tree Maintenance, Project No.

WE22052.

2. Approve the specifications for the Citywide Tree Maintenance, Project No. WE22052.

3. Award a Construction Contract in the amount of $3,791,766.09 to P31 Enterprises, Inc. of Oroville, CA, for the Citywide Tree Maintenance, Project No. WE22052.

It is also recommended that the City Manager be authorized to take appropriate and necessary actions to carry out the purpose and intent of this resolution.

Department: Public Works
Attachment A - Maintenance Trimming Locations
Attachment B - Tree Removal Locations
Attachment C - Tree Stump Removal Locations
Attachment D - Clearance Work Order Trimming Locations
Proposed Resolution
Exhibit 1 - Notice of Exemption
Exhibit 2 - Construction Contract
PPT - 15.1 - Citywide Tree Maintenance
Attachments:

Note: This item was revised on June 15, 2023 by the Public Works Department

15.2 23-0491 ADOPT AN ORDINANCE AMENDING TITLE 5, CHAPTER 5.16, SECTION 5.16.010 AND ADDING CHAPTER 5.104 TO THE

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STOCKTON MUNICIPAL CODE RELATED TO TOBACCO

RETAILERS
Recommended Action:

RECOMMENDATION
It is recommended that the City Council:

1. Adopt an ordinance amending Title 5, Chapter 5.16, Section 5.16.010, and adding Chapter 5.104 to the Stockton Municipal Code relating to tobacco retailers.

2. Authorize the City Manager, or designee, to take all appropriate and necessary actions to carry out the purpose and intent of the ordinance.

Department: Police
Attachment A - Proposed Ordinance Red-lined Version
Attachment B - Additional Flavored Tobacco Options
Attachment C - Proposed New Fees
Proposed Ordinance
PPT - 15.2 - Tobacco Retailer Ordinance
Attachments:

16. HEARINGS**

16.1 23-0560 PUBLIC HEARING TO ADOPT THE FISCAL YEAR 2023-24 ANNUAL BUDGET; APPROVE THE 2023-2028 CAPITAL IMPROVEMENT
PLAN; APPROVE THE FY 2023-24 FEE SCHEDULE; APPROVE THE
FY 2023-24 CALIFORNIA CONSTITUTIONAL APPROPRIATIONS
LIMIT; ADOPT THE FY 2023-24 ANNUAL BUDGET FOR THE
PARKING AUTHORITY OF THE CITY OF STOCKTON; ADOPT THE
FY 2023-24 ANNUAL BUDGET FOR THE SUCCESSOR AGENCY TO

THE FORMER STOCKTON REDEVELOPMENT AGENCY

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Recommended Action:

RECOMMENDATION
It is recommended that the City Council approve a resolution to:

1. Adopt the Fiscal Year (FY) 2023-24 Annual Budget, the 2023-2028 Capital Improvement Plan, and the FY 2023-24 Fee Schedule as modified in the Budget Addendum (Exhibit 1 to the City resolution),

2. Adopt the FY 2023-24 California Constitutional (Gann) Appropriations Limit,

3. Approve other administrative and financial actions.

And it is recommended that the Parking Authority of the City of Stockton (Parking Authority) approve a resolution to:

1. Adopt the FY 2023-24 Annual Budget for the Parking Authority (Exhibit 1 to the Parking Authority resolution).

And it is recommended that the Successor Agency to the former Stockton Redevelopment Agency (Successor Agency) approve a resolution to:

1. Adopt the FY 2023-24 Annual Budget for the Successor Agency to the former Stockton Redevelopment Agency (Exhibit 1 to the Successor Agency resolution).

It is further recommended that the City Manager be authorized to take appropriate and necessary actions to carry out the purpose and intent of the resolutions.

Department: Administrative Services
Proposed City Resolution FY 2023-24 Budget
Exhibit 1 - City Resolution - Budget Addendum
Proposed Resolution Parking Authory - FY 2023-24 Budget Exhibit 1 - Parking Authority Proposed Budget
Proposed Resolution Sucessor Agency FY 2023-24 Budget
Exhibit 1 - Successor Agency Proposed Budget
PPT - 16.1 - FY23-24 Annual Budget Public Hearing
Attachments:

Note: This item was revised on June 15, 2023 by the Administrative Services Department

17. CITY MANAGER'S UPDATE

18. COUNCIL COMMENTS

19. ADJOURNMENT

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CERTIFICATE OF POSTING
I declare, under penalty of perjury, that I am employed by the City of Stockton and that I caused this agenda to be posted in the City Hall notice case on June 15, 2023, in compliance with the Brown Act.

Eliza R. Garza, CMC
City Clerk
By: ________________________________

Deputy

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PUBLIC COMMENTS
*Citizens may comment on any subject within the jurisdiction of the City Council/Successor Agency to the Redevelopment Agency/Public Finance Authority/Parking Authority, including items on the Agenda. Each speaker is limited to three minutes. Speakers must submit “Request to Speak” cards to the City Clerk, and be prepared to speak when called. No speaker cards will be received after the close of the Citizen’s Comments portion of the meeting.
**Speakers should hold comments on items listed as a Hearing until the Hearing is opened.

The City of Stockton invites public comments in multiple forms. You provide your comments by using one of these methods:

1. e-Comment - follow the e-comment link on the City's agenda page stockton.granicusideas.com/meetings

2. Email - you may email your comments to [email protected]

3. Voicemail - you can leave a voice message by dialing (209) 937-8459.

4. In-Person Comments - a) Speakers must submit "request to speak cards" to the Clerk prior to the Public Comment portion of the agenda. No speaker cards will be accepted after the close of Public Comment. Please redirect any inquiries to [email protected]. b) Address only issues over which the meeting body has jurisdiction. c) Each speaker will be limited to one 3-minute comment opportunity. Donating time is not authorized. d) Your time will be displayed on the speaker podium for convenience. *All written and voicemail public comments received by the Clerk's Office 90 minutes prior to the meeting start time will be forwarded to the meeting body members as correspondence and attached the minutes. All comments received after that time will be forwarded as correspondence the following business day. ***Additions to the Agenda - Government Code Section 54954.2(b)(2), allows members of the City Council present at the meeting to take immediate action, with either a two-thirds or unanimous vote, to place an item on the agenda that action must be taken and that the item came to the attention of the City subsequent to the agenda being posted.

All proceedings before this meeting body are conducted in English. The City of Stockton does not furnish language interpreters and, if one is needed, it shall be the responsibility of the person needing one.

In accordance with the Americans With Disabilities Act and California Law, it is the policy of the City of Stockton to offer its public programs, services and meetings in a manner that is readily accessible to everyone, including those with disabilities. If you are a person with a disability and require a copy of a public hearing notice, or an agenda and/or agenda packet in an appropriate alternative format; or if you require other accommodation, please contact the Office of the City Clerk located at 425 North El Dorado Street, Stockton, California 95202 during normal business hours or by calling (209) 937-8458, at least 5 days in advance of the hearing/meeting. Advance notification within this guideline will enable the City/Agency to make reasonable arrangements to ensure accessibility.

Materials related to an item on this agenda submitted to City Council after distribution of the agenda packet are available for public inspection in the City Clerk's Office at 425 North El Dorado Street, Stockton, California 95202, during normal business hours. Such documents are also available on the City's website at www.stocktongov.com subject to staff's ability to post the documents before the meeting.

CHALLENGING CITY DECISIONS: 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

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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 Stockton, 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.

13 City of Stockton
Legislation Text
File #: 23-0475, Version: 1
ACCEPT AND APPROVE AMENDMENTS TO THE CITY OF STOCKTON’S INVESTMENT POLICY NO. 17.01.030

RECOMMENDATION
It is recommended that the City Council approve a motion to amend City Policy No 17.01.030 “City Investment Policy” as presented in Attachment A.

It is further recommended that the City Manager be authorized to take appropriate and necessary action to carry out the purpose and intent of the motion.

Summary
The recommended action would reaffirm the City’s existing investment policy with revisions.

California Debt and Investment Advisory Commission (CDIAC) provides information, education and technical assistance on debt issuance and public fund investments to local agencies and public finance professionals.

The City Council Policy Chapter 5.03 - Investments (Attachment B) was last approved on October 3, 2017 and the City’s Investment Policy No. 17.01.030 was approved by the City Manager on October 30, 2017. Since that time, CDIAC has made several changes to its guidance for local governments when managing and investing public funds.

Hence, the City staff and the City’s investment consultants recommend incorporating these policy changes in the following areas: Policy Modifications related to State Code Changes, Policy Modifications related to Longer Maturity Securities, and lastly Policy Modifications related to Policy Clarifications. A red-lined version of the policy changes is included as Attachment C. No changes are needed to the City Council level policy at this time.

DISCUSSION
Background
The California Government Code (“CGC”) contains specific provisions regarding the types of investments and practices that a City Council may authorize after considering the broad requirements of preserving principal and maintaining liquidity before seeking yield. These provisions are intended to promote the use of reliable, diverse, and safe investment instruments.

The Council sets forth its policies and practices in this regard by adopting the City Investment Policy at a public meeting.

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Thereafter, pursuant to Section 53646 of the CGC, the City Treasurer may annually render to the City Council a statement of investment policy and bring any recommendations for changes for the Council’s consideration at a public meeting.

The City of Stockton’s Investment Policy is reviewed annually by the Chief Financial Officer, acting in the capacity of Director of Administrative Services and Treasurer. This policy outlines the structure and oversight responsibilities, including the delegation of authority by the City Council to the City Treasurer for investment decisions, and grants authority to the City Treasurer to delegate to an external investment manager the day-to-day management of the City’s investment portfolio.

The City has been contracting with PFM Asset Management for investment portfolio management services since 2017 and has recently added Chandler Asset Management to its team of portfolio managers.

Present Situation
While the adoption of an investment policy is no longer required by statute, it is in the best interest of the local agency to present and discuss the policy with the agency’s legislative body and/or oversight committee, and then have the policy approved by a vote of the legislative body. Having a public vote signifies that the legislative body shares fiduciary responsibility with the Treasurer, increases the authority and legitimacy of the investment policy, and provides transparency and disclosure.

The annual review includes affirming the investment goals and objectives of the City. According to the California Debt and Investment Advisory Commission (CDIAC), priorities of a comprehensive investment policy should include, but not be limited to, the following:
· Ensuring safety of principal.
· Ensuring that the liquidity needs for operations and other City obligations are met. · Seeking maximum yield on the City’s investments after ensuring the two priorities above are met.

The City’s current adopted Investment Policy follows these priorities. The policy allows investment types that conform to CGC.

Revisions to this policy have been made in the following areas:

Code Changes
In 2022, changes were made to CGC concerning the investment of public funds that went into effect on January 1, 2023. Senate Bill 1489 revised CGC section 53601, the section that governs the investment of public funds, by adding language stating that an investment’s term or remaining maturity shall be measured from the settlement date to final maturity, and that a security purchased in accordance with CGC section 53601 shall not have a forward settlement date exceeding 45 days from the time of investment. Previously, the code was silent on both items.

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Policy Modifications Related to Longer-Maturity Securities The City’s portfolio has been managed according to a 1- to 5-year strategy since PFM began working with the City in 2017. Recently, the City has decided to extend the portfolio’s strategy in order to incorporate longer-maturity investments in an effort to safely increase the portfolio’s long-term earnings and growth in compliance with CGC and in line with the City’s investment objectives. To allow the City additional flexibility in longer-maturity securities, PFM is recommending the following Policy changes:
· Extend the maximum maturity limitation on municipal obligations from five (5) years to ten (10) years (Policy section VIII. Authorized and Suitable Investments, A). · Remove the ten (10) year maximum maturity limitation on U.S. Treasuries and Federal Agencies/GSEs, including agency mortgage-related securities (Policy section VIII. Authorized and Suitable Investments, B and C).
· Increase the maximum percentage of the portfolio that may be invested in securities with maturities beyond 5 years from 15% to 30% (Policy section VIII. Authorized and Suitable Investments).

Policy Modifications Related to Policy Clarification
Language is now added in the Scope section of the policy to further clarify City funds that are not guided by the Investment Policy. Examples of these funds are the Pension 115 trust, deferred compensation, and retirement plan accounts. These funds typically have their own investment policies or guidelines.

FINANCIAL SUMMARY
There is no financial impact as a result of approving the amended Investment Policy.

Attachment A - Proposed City Policy No 17.01.030 “City Investment Policy” Attachment B - City Council Policy Chapter 5.03 Investment Attachment C - Redline Policy Revisions to City Policy No 17.01.030 “City Investment Policy” City of Stockton Printed on 6/14/2023Page 3 of 3
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16 ATTACHMENT A

1 POLICY
It is the policy of the City of Stockton to invest funds in a manner which will provide foremost for the safety of principal while meeting the short and long term cash flow demands of the City and conforming to all statutes governing the investment of City funds.

I. Scope
This Investment Policy applies to all cash, operating, and surplus funds included within the City’s audited financial statements and held directly by the City.

Bond proceeds shall be invested in accordance with the governing bond documents (e.g. official statement and trust indenture). Proceeds of City bonds or other debt issues in possession of a trustee or fiscal agent are not considered to be part of the financial assets covered by these Investment Policy guidelines.

Also excluded from this Policy are any deferred compensation, retirement, Section 115 Trust, and Other Post Employment Benefit Plans. Investments related to these plans are not subject to this policy since third-party administrators or trustees manage the funds, and, either the individual plan participants or outside investment managers or trustees direct investment selections under the guidelines established by the plan documents.

II. Prudence
Investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in the management of their own affairs; not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived.

Investments shall be made in accordance with the “Prudent Investor” standard, as described in California Government Code Section 53600.3, which states: “Except as provided in subdivision (a) of Section 27000.3, all governing bodies of local agencies or persons authorized to make investment decisions on behalf of those local agencies investing public funds pursuant to this chapter are trustees and therefore fiduciaries subject to the prudent investor standard. When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act SUBJECT: INVESTMENT POLICY NUMBER: 17.01.030
RESPONSIBLE OFFICER:

City Manager
EFFECTIVE DATE:
6/20/2023
POLICY OWNER:

Administrative Services Department
LAST UPDATED:
10/30/2017
POLICY CONTACT:

CFO, Administrative Department, City Treasurer
APPROVED:

INVESTMENT Chapter 17.01.030

17 ATTACHMENT A

2 with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency. Within the limitations of this section and considering individual investments as part of an overall strategy, investments may be acquired as authorized by law.” III. Objectives
Within the overriding requirement of compliance with all Federal, State and local laws governing the investment of moneys under the control of the Treasurer, and as specified in the California Government Code Section 53600.5, when investing, reinvesting, purchasing, acquiring, exchanging, selling and managing public funds, the primary objectives, in priority order, of the investment activities shall be:

1. Safety. Safety of principal is the foremost objective of the investment program.

Investments shall be undertaken in a manner that seeks to ensure the preservation of capital in the portfolio.

2. Liquidity. The investment portfolio will remain sufficiently liquid to enable the City to meet all operating requirements which might be reasonably anticipated.

3. Return on Investment. The City’s investment portfolio shall be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the City’s investment risk constraints and cash flow requirements.

IV. Delegation of Authority
California Government Code Section 53607 allows for the delegation of investment activities to the Treasurer of the City for periods of one year. The Treasurer shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate officials, and their procedures in the absence of the Treasurer. The delegation, subject to review, is renewable on an annual basis and is to be included as part of the adoption of the annual budget to have the authority in place at July 1 of each year.

The Treasurer may delegate the day-to-day execution of investments to a Securities and Exchange Commission (SEC)-registered investment advisor, via written agreement approved by City Council.

The Advisor, in coordination with the Treasurer, will manage the City’s investment portfolio in accordance with this Investment Policy, the stated investment objectives of the City, and any such other written instructions provided by the Treasurer. The Advisor will also assist in security settlement.

V. Ethics and Conflicts of Interest
The Treasurer and any designated employees are prohibited from personal business activity that could conflict with the proper execution of the investment program, or which could impair their ability to make impartial investment decisions, or which could give the appearance thereof. Employees and investment officials shall disclose any material interests in financial institutions with which they conduct business to the Treasurer. They shall further disclose any personal financial/investment positions that could be related to the performance of the investment portfolio. Furthermore, these same individuals are prohibited from undertaking personal investment transactions with any 18 ATTACHMENT A

3 individual with whom business is conducted on behalf of the City. The State of California Fair Political Practices Commission Statement of Economic Interests, Form 700, shall be completed on an annual basis by the Treasurer and any designee of the Treasurer.

VI. Internal Controls
The Treasurer is responsible for establishing and maintaining a control structure designed to ensure that the assets of the City are protected from loss, theft or misuse. The internal control structure shall be designed to provide reasonable assurance that these objectives are met. Internal controls shall separate transaction authority from accounting and record keeping, safekeep assets, and maintain written records for all investments and wire transfers.

A. Objectives of Internal Control
Internal control is the plan of the organization and all the related systems established by management’s objective of ensuring, as far as practicable:
 Orderly and efficiently conduct of its business, including adherence to management policies.
 Safeguarding of assets.
 Prevention and detection of errors and fraud.
 Accuracy and completeness of the accounting records; and  Timely preparation of reliable financial information.

An internal control system, however elaborate, can provide only reasonable assurance that the objectives are met. Internal controls are reviewed periodically to ensure effectiveness.

VII. Reporting
A. Monthly: As described in California Government Code Section 53607, a report of investment transactions will be made to the City Council every month.

B. A report shall be rendered to the City Manager, City Council, and City Auditor at least four times per fiscal year and shall include:
 A complete description of the portfolio, the type of investments, the issuers, maturity dates, par and dollar amounts invested on all securities, the current market values of each component of the portfolio, the source of the portfolio valuation, investments, and monies held by the City.
 A description of any of the City’s funds, investments, or programs under the management of contracted parties, including lending programs.
 The following certifications:
 All investment actions executed since the last report have been made in full compliance with the Investment Policy.
 The City of Stockton will meet its expenditure obligations for the next six months as described in California Government Code Section 53646(b)(3).

C. Both monthly and quarterly reports shall be made publicly available in the City Clerk’s Office, on the City Website, or other appropriate means.
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4 VIII. Authorized and Suitable Investments
The City’s investments are governed by California Government Code, Sections 53600, et seq.

Within the assets permitted by the Code; the City seeks to further restrict eligible investments to the guidelines listed below. In the event a discrepancy is found between this policy and the Code, the more restrictive parameters will take precedence. All percentage holding limits and rating requirements listed in this section apply at the time the security is purchased. A security purchased in accordance with this section shall not have a forward settlement date exceeding 45 days from the time of investment.

Any investment currently held at the time the policy is adopted which does not meet the new policy guidelines can be held until maturity, and shall be exempt from the current policy. At the time of the investment’s maturity or liquidation, such funds shall be reinvested only as provided in the current policy.

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

Securities with term to maturity greater than 5 years shall not exceed 30% of total portfolio value.

A. Municipal Securities including Registered state warrants or treasury notes or bonds of this state, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by the state or by a department, board, agency, or authority of the state.

Bonds, notes, warrants, or other evidences of indebtedness of a local agency within this state, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by the local agency, or by a department, board, agency, or authority of the local agency.

Registered treasury notes or bonds of any of the other 49 states in addition to California, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by a state or by a department, board, agency, or authority of any of the other 49 states, in addition to California.
 The securities are rated in a rating category of “A” or the equivalent or higher by at least one nationally recognized statistical rating organization (“NRSRO”).  No more than 5% of the portfolio may be invested in any single issuer.  No more than 30% of the portfolio may be in Municipal Securities.  The maximum maturity does not exceed ten (10) years.

B. United States Treasury notes, bonds, bills, or certificates of indebtedness, or those for which the full faith and credit of the United States are pledged for the payment of principal and interest.  There are no limits on the maturity, dollar amount or percentage that the City may invest in U.S. Treasuries

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5 C. Federal Agencies or United States Government-Sponsored Enterprise (GSE) obligations, participations, or other instruments, including those issued by or fully guaranteed as to principal and interest by federal agencies or United States government-sponsored enterprises.  Includes agency-backed mortgage-backed securities, mortgage pass-through securities, and collateralized mortgage obligations.
 There are no limits on the maturity, dollar amount, or percentage that the City may invest in Federal Agency or Government-Sponsored Enterprises (GSEs), provided that:
 No more than 20% of the portfolio may be invested in a federal agency or GSE issued mortgage-backed securities, mortgage pass -through securities, and collateralized mortgage obligations.

D. Banker’s Acceptances otherwise known as bills of exchange or time drafts that are drawn on and accepted by a commercial bank.
 Issued by institutions which have short-term debt obligations rated “A-1” or higher by at least one NRSRO; or long-term debt obligations which are rated in a rating category of “A” or the equivalent or higher by at least one NRSRO, provided that:
 No more than 40% of the portfolio may be invested in Banker’s Acceptances.  No more than 5% of the portfolio may be invested in any single issuer.  The maximum maturity does not exceed 180 days.

E. Commercial Paper of “prime” quality of the highest ranking or of the highest letter and number rating as provided for by a nationally recognized statistical rating organization (NRSRO). The entity that issues the commercial paper shall meet all of the following conditions in either paragraph (1) or (2):
(1) The entity meets the following criteria:
(A) Is organized and operating in the United States as a general corporation. (B) Has total assets in excess of five hundred million dollars ($500,000,000). (C) Has debt other than commercial paper, if any, that is rated in a rating category of “A” or its equivalent or higher by an NRSRO.
(2) The entity meets the following criteria:
(A) Is organized within the United States as a special purpose corporation, trust, or limited liability company.
(B) Has 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.

Commercial paper that meets the above requirements is permitted, provided that:
 The securities are rated “A-1” or higher by at least one NRSRO.  No more than 40% of the portfolio may be invested in commercial paper.  No more than 5% of the portfolio may be invested in any single issuer.  The maximum maturity does not exceed 270 days.

F. Negotiable Certificates of Deposit (NCDs), issued by a nationally or state-chartered bank, a savings association or a federal association, a state or federal credit union, or by a federally licensed or state-licensed branch of a foreign bank, provided that:
 The amount of the NCD insured up to the FDIC limit does not require any credit ratings.  Any amount above the FDIC insured limit must be issued by institutions which have short- term debt obligations rated “A-1” or higher by at least one NRSRO; or long-term obligations rated in a rating category of “A” or the equivalent or higher by at least one NRSRO. 21 ATTACHMENT A

6  No more than 30% of the total portfolio may be invested in NCDs.  No more than 5% of the portfolio may be invested in any single issuer.  The maximum maturity does not exceed five (5) years.

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

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

I. Certificate of Deposit Placement Service (CDARS), provided that:
 No more than 20% of the total portfolio may be invested in a combination of federally insured time deposits, collateralized time deposits, and CDARS.  The maximum maturity does not exceed five (5) years.

J. Collateralized Bank Deposits. City’s deposits with financial institutions will be collateralized with pledged securities per California Government Code, Section 53651.

K. Repurchase Agreements collateralized with securities authorized under California Government Code, maintained at a level of at least 102% of the market value of the Repurchase Agreement.

There are no limits on the dollar amount or percentage that the City may invest, provided that:
 Securities used as collateral for Repurchase Agreements will be delivered to an acceptable third party custodian.
 Repurchase Agreements are subject to a Master Repurchase Agreement between the City and the provider of the repurchase agreement. The Master Repurchase Agreement will be substantially in the form developed by the Securities Industry and Financial Markets Association.
 The maximum maturity does not exceed one (1) year.

L. State of California Local Agency Investment Fund (LAIF).  The City may invest up to the maximum amount permitted by LAIF.  LAIF’s investments in instruments prohibited by or not specified in the City’s policy do not exclude the investment in LAIF itself from the City’s list of allowable investments, provided LAIF’s reports allow the Treasurer to adequately judge the risk inherent in LAIF’s portfolio.

M. California Asset Management Program
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7 N. Medium Term Notes (MTNs) defined as all corporate and depository institution debt securities with a maximum remaining maturity of five years or less, issued by corporations organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States, provided that:
 The securities are rated in a rating category of “A” or the equivalent or higher by at least one NRSRO.
 No more than 30% of the total portfolio may be invested in MTNs.  No more than 5% of the portfolio may be invested in any single issuer.  The maximum maturity does not exceed five (5) years.

O. A pay-through bond, equipment lease-backed certificate, consumer receivable pass-through certificate, or consumer receivable-backed bond of a maximum remaining maturity of five years’ or less, provided that:
 The securities are rated in a rating category of “AA” or the equivalent or higher by a NRSRO.
 No more than 20% of the total portfolio may be invested in these securities.  No more than 5% of the portfolio may be invested in any single Asset -Backed security issuer.
 The maximum legal final maturity does not exceed five (5) years.

P. Shares of beneficial interest issued by diversified management companies that are money market funds registered with the Securities and Exchange Commission under the Investment Company Act of 1940 (15 U.S.C. Sec. 80a-1 et seq.). Money market funds eligible under this paragraph are restricted to those which invest solely in US Government and Agency securities, provided that:
 Such Funds meet either of the following criteria:

A. Have attained the highest ranking or the highest letter and numerical rating provided by not less than two (2) NRSROs; or
B. Have retained an investment adviser registered or exempt from registration with the Securities and Exchange Commission with not less than five years’ experience investing in the securities and obligations authorized by California Government Code, Section 53601 and with assets under management in excess of $500 million.  No more than 20% of the total portfolio may be invested in Money Market Funds.

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

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8 IX. Review of Investment Portfolio
All securities purchased by the City must be in compliance with Section VIII Authorized and Suitable Investments at the time of purchase. Because some securities may not comply with Section VIII Authorized and Suitable Investments subsequent to the date of purchase, the Treasurer shall at least annually review the portfolio to identify those securities that do not comply.

Any investment currently held that becomes non-compliant due to a change of the policy after its acquisition will not have to be sold immediately. As long as investments are compliant at the time of purchase, they are acceptable to hold to maturity if that is the Treasurer’s decision. It is not, however, acceptable to reinvest the proceeds of those maturities in any investment that does not meet the most current Investment Policy guidelines. The Treasurer shall establish procedures to report to the City Council and to its oversight committee, should one exist, any incidences of noncompliance identified through the review of the portfolio.

X. Investment Pools/Mutual Funds
A thorough investigation of any permitted pool/fund is required prior to investing, along with periodic due diligence reviews at least annually. The prospectus, program guide or offering statement shall be reviewed to ensure compliance with the following criteria:

1. A description of eligible investment securities, and a written statement of investment policy and objectives.

2. A description of interest calculations and how it is distributed, and how gains and losses are treated.

3. A description of how the securities are safeguarded (including the settlement processes), and how often the securities are priced and the program audited.

4. A description of who may invest in the program, how often, what size deposit and withdrawal are allowed.

5. A schedule for receiving statements and portfolio listings.

6. Are reserves, retained earnings, etc. utilized by the pool/fund?

7. A fee schedule, and when and how is it assessed.

8. Is the pool/fund eligible for bond proceeds and/or will it accept such proceeds?

XI. Collateral Requirements
California Government Code Sections 53652 and 53667 require depositories to post certain types and levels of collateral for public funds on deposit above the FDIC insurance amounts. The collateral requirements apply to bank deposits, both active (checking and savings accounts) and inactive (non- negotiable time certificates of deposit), and to repurchase agreements.

The City chooses to limit collateral to the following: U.S. Treasuries and Federal Agency Obligations.

Collateral will always be held by an independent third party with whom the City has a current custodial agreement. A clearly marked evidence of ownership (safekeeping receipt) must be supplied to the City and retained. The right of collateral substitution may be granted.

XII. Authorized Financial Institutions and Dealers
A. For brokers/dealers of government securities and other investments, the Treasurer shall select only brokers/dealers who are licensed and in good standing with the California Department of Securities, the Securities and Exchange Commission, and/or Financial Industry Regulatory 24 ATTACHMENT A

9 Authority, Inc. (FINRA). Before engaging in investment transactions with a broker/dealer, the Treasurer shall obtain a signed verification form that attests the individual reviewed the City’s Investment Policy, and intends to present only those investment recommendations and transactions to the City that is appropriate under the terms and conditions of the Investment Policy.

B. The City may engage the services of one or more external managers to assist in the management of the City’s investment portfolio. Such external managers may be granted discretion to purchase and sell investment securities in accordance with this Investment Policy.

External managers may use their own list of approved broker-dealers. Such managers must be registered under the Investment Advisers Act of 1940.

C. Public deposits shall be made only in qualified public depositories within the State of California as established by State law. Deposits shall be insured by the Federal Deposit Insurance Corporation (FDIC), or, to the extent the amount exceeds the insured maximum, shall be collateralized with securities in accordance with State law.

D. The Administrative Services Department shall verify investment trades against the bank transactions and broker confirmation tickets to ensure accuracy. On a monthly basis, the custodial asset statement shall be reconciled with the month end portfolio holdings.

XIII. Maximum Allowable Maturity of Investments
The investment program may include investments with maturities beyond five years, if in the judgment of the Treasurer, such investments should result in a more favorable rate of return for the City. Per California Government Code Section 37354, donated securities are not subject to maturity limits. Investments maturing beyond a five-year horizon should not exceed 30% of the total portfolio value at any given time. Investments of greater than five years shall be permitted for US Treasury, US Agency or GSE obligations, and municipal securities, as described in Section VIII Authorized and Suitable Investments, paragraphs A, B and C. Additionally, investments in City Variable Rate obligations, with maturities greater than five years, may be made when IRS and SEC guidelines permit. For purposes of compliance with this Policy, an investment’s term or remaining maturity shall be measured from the settlement date to final maturity.

XIV. Mitigating Risk in the Portfolio
A. Credit Risk
 The City will diversify its investments to diminish the credit risk resulting from concentrations in any one non-governmental issuer.
 If a security owned by the City is downgraded to a level below the quality required for purchase by this Policy, the Treasurer shall review the credit situation and make a determination as to whether to sell or retain such securities in the portfolio.

B. Market Risk. While the City recognizes that longer term portfolios achieve higher returns, longer term portfolios also have higher volatility of market values and total return. The City will limit market risk by limiting the concentrations, volume and duration of its longer term investments, as well as limiting them to funds which are not needed for current year cash flow purposes.  Maturities selected shall provide for stability of income and liquidity.  Portfolio maturities shall be managed to avoid undue concentration in any specific maturity.
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10  The City may sell a security prior to its maturity (recording a gain or loss) to diminish the portfolio’s exposure to market risk.

C. Diversification is required that potential losses on individual securities do not exceed the income generated from the remainder of the portfolio.

D. The City may sell a security prior to its maturity (recording a gain or loss) to adjust the portfolio duration or improve the risk structure, liquidity or yield of the portfolio in response to market condition or City needs.

XV. Safekeeping and Delivery
A. To protect against fraud, embezzlement, or losses caused by collapse of individual securities dealers, all securities owned by the City shall be held in safekeeping by the City’s custodial bank, a third-party bank trust department, acting as agent for the City under the terms of a custody agreement.

B. All security transactions entered into by the City shall be conducted on a standard delivery- versus-payment basis, which ensures that securities are deposited with the third-party custodian prior to the release of funds. All securities purchased or acquired shall be delivered to the City by book entry, physical delivery or by third-party custodial agreement as required by California Government Code Section 53601. Investments in the State Pool, California Asset Management Program, or money market mutual funds are undeliverable and are not subject to third-party safekeeping requirements.

XVI. Diversification
The City’s investments shall be diversified by:
 Limiting investments to avoid over concentration in securities from a specific issuer or business sector (excluding U.S. Treasury securities).
 Limiting investment in securities that have higher credit risks.  Investing in securities with varying maturities.
 Continuously investing a portion of the portfolio in readily available funds such as money market funds to ensure that appropriate liquidity is maintained to meet ongoing obligations.

XVII. Performance Evaluation and Operations Audit
Investment of City funds is governed by the California Government Code Section 53600, et seq.

Within the context of those limitations, the analysis and selection of investments includes prudent investment principals, review of investment performance, current and expected interest rate yields (economic and interest rate trends), diversification, and structured maturity composition to meet necessary cash flow requirements.

The investment performance objective for the portfolio shall be to earn a total rate of return over a market cycle which is approximately equal to the return on a market benchmark which reflects the City’s investment objectives and risk preferences.

The Treasurer shall ensure that the City’s annual process of independent review by an external auditor will include a review to assure full compliance with this investment policy and a review of acceptable internal controls.
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11 XVII. Investment Policy Adoption

As stated in California Government Code Section 53646(2)(b), the Treasurer may annually render to the City Council a statement of Investment Policy, and any changes thereto, for consideration at a public meeting.

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12 Glossary
AGENCIES: Federal agency securities and/or government-sponsored enterprises (GSEs).

ASK PRICE: The price at which securities are offered.

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

BENCHMARK: A `market index used as a comparative base for measuring the relative performance of the investment portfolio. A benchmark should represent a close correlation to the level of risk and the average duration of the portfolio’s investments.

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

BROKER/DEALER: A person or firm in the business of buying and selling securities from/to customers.

CERTIFICATE OF DEPOSIT (CD): A time deposit with a specific maturity evidenced by a Certificate.

Large-denomination 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.

COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR): The official annual report of a public body. It includes five combined statements for each individual fund and account group prepared in conformity with GAAP. It also includes supporting schedules necessary to demonstrate compliance with finance-related legal and contractual provisions, extensive introductory material, and a detailed Statistical Section.

COUPON: The annual rate of interest that a bond’s issuer promises to pay the bondholder on the bond’s face value.

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

DELIVERY VERSUS PAYMENT: Delivery of securities with a simultaneous exchange of money 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, or (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 value when quoted at lower than face value.

DISCOUNT SECURITIES: Non-interest bearing money market instruments that are issued a discount and redeemed at maturity for full face value (e.g., U.S. Treasury Bills.) The difference between the discounted purchase price and the maturity value represents the interest earnings on the investment.

DIVERSIFICATION: Dividing investment funds among a variety of sectors, securities, or maturities that offer independent returns.
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13 DURATION: A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. Duration is expressed as a number of years. Rising interest rates mean falling bond prices, while declining interest rates mean rising bond prices.

FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC): A federal agency that insures bank deposits, currently up to $250,000 per entity.

FEDERAL FUNDS RATE: The interest rate at which depository institutions lend reserve balances to other depository institutions overnight. This rate is pegged by the Federal Reserve.

FEDERAL HOME LOAN BANK (FHLB) SYSTEM: A system of 11 regional banks from which local lending institutions across the U.S. borrow funds to finance housing, economic development, infrastructure and jobs. There are approximately 7,100 FHLB System members, including commercial banks, thrifts, credit unions, and insurance companies. Each member is a shareholder in one of the regional FHLBs; each regional Bank is an individual corporate entity, which must meet strict management and capitalization criteria befitting its status as a government-sponsored enterprise.

FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA or Fannie Mae): Fannie Mae is a government-sponsored enterprise (“GSE”) chartered by Congress. It serves as a stable source of liquidity for purchases of homes and financing of multifamily rental housing, as well as for refinancing existing mortgages. It also supports the liquidity and stability of the U.S. mortgage market primarily by securitizing mortgage loans originated by lenders into Fannie Mae mortgage-backed securities that it guarantees, which are referred to as Fannie Mae MBS.

FEDERAL OPEN MARKET COMMITTEE (FOMC): A committee within the Federal Reserve System (the Fed), that is charged under U.S. law with overseeing the nation's open market operations (i.e., the Fed's buying and selling of United States Treasury securities. It consists of seven members of the Federal Reserve Board and five of the twelve Federal Reserve Bank Presidents, who serve on a rotating basis.

The Committee meets about 8 times per year to set Federal Reserve monetary policy, including establishing the target for the fed funds rate.

FEDERAL RESERVE SYSTEM: The central bank of the United States . It was created by Congress and consists of a seven member Board of Governors in Washington, D.C., 12 regional banks and about 7 ,000 commercial banks that are members of the system. Its role is to conduct the nation's monetary policy , maintain the stability of the financial system , supervise and regulate financial institutions, foster payment and settlement system safety and efficiency , and promote consumer protection and community development.

GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA or Ginnie Mae): Securities influencing the volume of bank credit guaranteed by GNMA and issued by mortgage bankers, commercial banks, savings and loan associations, and other institutions. Security holder is protected by full faith and credit of the U.S. Government. Ginnie Mae securities are backed by the FHA, VA or FHA mortgages. The term “pass-throughs” is often used to describe Ginnie Maes.

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. LOCAL GOVERNMENT INVESTMENT POOL (LGIP):

The aggregate of all funds from political subdivisions that are placed in the custody of the State Treasurer for investment and reinvestment.

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 transactions between the parties to a repurchase or reverse repurchase agreement. It establishes each party’s rights in the transactions, 29 ATTACHMENT A

14 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 value of an investment becomes due and payable.

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

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

PRIMARY DEALERS: Banks and securities broker-dealers designated by the Federal Reserve Bank of New York that permit them to trade in U.S. Government securities directly with the Fed in its implementation of monetary policy. They are also expected to make markets for the New York Fed on behalf of its official accountholders as needed, and to bid on a pro-rata basis in all Treasury auctions at reasonably competitive prices.

PRUDENT PERSON RULE: An investment standard. In some states the law requires that a fiduciary, such as a trustee, may invest money only in a list of securities selected by the custody state—the so-called legal list. In other states the trustee may invest in a security if it is one which would be bought by a prudent person of discretion and intelligence who is seeking a reasonable income and preservation of capital.

RATE OF RETURN: The actual realized return on an investment or portfolio of investments over a specified period of time.

REPURCHASE AGREEMENT (REPO): A transaction in which an investor purchases securities from a counterparty with a simultaneous agreement to sell them back at a fixed price on a fixed date in the future.

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 for this by paying an implied rate of interest for the term of the repo.

REVERSE REPURCHASE AGREEMENT (REVERSE REPO): The opposite transaction to a repo. A reverse-repurchase agreement (reverse repo) involves a counterparty borrowing cash from a financial institution in exchange for a temporary sale of securities used as collateral. The borrower agrees to repurchase the securities at a specified date for an agreed upon price, which includes interest. While a repo is a straightforward investment of funds, the reverse repo is a borrowing which can be used to fund a temporary cash shortage, or to create leverage.

SAFEKEEPING: A fee-based service provided by banks to hold and safeguard customer assets and investments.

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

SECURITIES & EXCHANGE COMMISSION: An independent, federal government agency responsible for protecting investors, maintaining fair and orderly functioning of securities markets, and facilitating capital formation. It is also the responsibility of the Commission to interpret and enforce federal securities laws, issue new rules and amend existing rules, oversee the inspection of securities firms, brokers, investment advisers, and ratings agencies, oversee private regulatory organizations in the securities, accounting, and auditing fields, and coordinate U.S. securities regulation with federal, state, and foreign authorities. 30 ATTACHMENT A

15 SEC RULE 15(C)3-1: See Uniform Net Capital Rule.

STRUCTURED NOTES: Complex notes typically issued by Government Sponsored Enterprises (FHLB, FNMA, etc.) and corporations, which have imbedded options or other complications (e.g., variable coupons, derivative-based returns) that can significantly affect their performance.

TREASURY BILLS: A non-interest bearing short-term discount security issued by the U.S. Treasury to finance the national debt. Most T-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 maturities of more than 10 years.

TREASURY NOTES: Medium-term coupon-bearing U.S. Treasury securities issued as direct obligations of the U.S. Government and having initial maturities from two to 10 years.

UNIFORM NET CAPITAL RULE: Securities and Exchange Commission requirement that member firms as well as nonmember broker-dealers in securities maintain a maximum ratio of indebtedness to liquid capital of 15 to 1; also called net capital rule and net capital ratio. Indebtedness covers all money owed to a firm, including margin loans and commitments to purchase securities, one reason new public issues are spread among members of underwriting syndicates. Liquid capital includes cash and assets easily converted into cash.

YIELD: The rate of annual income return on an investment, expressed as a percentage. (a) INCOME YIELD is obtained by dividing the current dollar income by the current market price for the security. (b) NET YIELD or YIELD TO MATURITY is the current income yield minus any premium above par or plus any discount from par in purchase price, with the adjustment spread over the period from the date of purchase to the date of maturity of the bond.

31 ATTACHMENT A

16 RESPONSIBILITIES
City Treasurer for implementation of this policy.

RELEVANT AUTHORITY
California Government Code Section 53607 allows for the delegation of investment activities to the Treasurer of the City for periods of one year. That delegation, subject to review, is renewable on an annual basis and is to be included as part of the adoption of the annual budget to have the authority in place at July 1 of each year.

Chapter 2.20.050 of the City of Stockton Municipal Code (SMC) defines “Treasurer” as the Director of Administrative Services. Chapter 2.20.060 of the SMC provides that management responsibility for the investment program is delegated to the Administrative Services Director. Under the provision of California Government Code Section 53600.3, the Treasurer is a trustee and therefore a fiduciary subject to the prudent investor standard outlined in the section below.

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. Such an external manager may be granted discretion to purchase and sell investment securities in accordance with this Investment Policy. Such managers must be registered under the Investment Advisers Act of 1940.

RELATED CITY POLICIES

FAIR POLITICAL PPRACTICES COMMISSION

RELATED CITY PROCEDURES

RELATED FORMS, DOCUMENTS, OR LINKS

FAIR POLITICAL PPRACTICES COMMISSION

FREQUENTLY ASKED QUESTIONS

UPDATE HISTORY

32 ATTACHMENT B

SUBJECT: INVESTMENT NUMBER: TITLE 5, CHAPTER 5.03
ADOPTED DATE: RESOLUTION NUMBER:

LAST AMENDED: RESOLUTION NUMBER:

COUNCIL POLICY CONTACT:

City Manager
CITY DEPARTMENT CONTACT:

CFO, Administrative Services
Department, City Treasurer
POLICY
The City of Stockton will invest funds in a manner that provides foremost for the safety of principal while meeting the short and long term cash flow demands of the City and conforming to all statutes governing the investment of City funds.

The City Council authorizes the City Manager to delegate the authority to the Chief Financial Officer (CFO) to be responsible for the implementation and management of the City of Stockton’s financial investments related to all cash, operating, and surplus funds included within the City’s audited financial statements and held directly by the City.

Investments shall be made with judgment and care, under the circumstances then prevailing, which persons of prudence, discretion, and intelligence exercise in the management of their own affairs; not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived.

Investments shall be made in accordance with the “Prudent Investor” standard, as described in California Government Code Section 53600.3, which states: “Except as provided in subdivision (a) of Section 27000.3, all governing bodies of local agencies or persons authorized to make investment decisions on behalf of those local agencies investing public funds pursuant to this chapter are trustees and therefore fiduciaries subject to the prudent investor standard. When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters INVESTMENT CHAPTER 5.03
33 ATTACHMENT B
would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency. Within the limitations of this section and considering individual investments as part of an overall strategy, investments may be acquired as authorized by law.”
Within the overriding requirement of compliance with all Federal, State and local laws governing the investment of monies under the control of the Treasurer, and as specified in the California Government Code section 53600.5, when investing, reinvesting, purchasing, acquiring, exchanging, selling and managing public funds, the primary objectives, in priority order, of the investment activities shall be:

1. Safety. Safety of principal is the foremost objective of the investment program. Investments shall be undertaken in a manner that seeks to ensure the preservation of capital in the portfolio. To attain this objective,

2. Liquidity. The investment portfolio will remain sufficiently liquid to enable the City to meet all operating requirements which might be reasonably anticipated.

3. Return on Investment. The City’s investment portfolio shall be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the City’s investment risk constraints and cash flow requirements.

DELEGATION OF AUTHORITY
California Government Code section 53607 allows for the delegation of investment activities to the Treasurer of the City for periods of one year. The Treasurer shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate officials, and their procedures in the absence of the Treasurer. The delegation, subject to review, is renewable on an annual basis and is to be included as part of the adoption of the annual budget to have the authority in place at July 1 of each year.

The Treasurer may delegate the day-to-day execution of investments to a SEC- registered investment advisor, via written agreement approved by City Council. The Advisor, in coordination with the Treasurer, will manage the City’s investment portfolio in accordance with this Investment Policy, the stated investment objectives of the City, and any such other written instructions provided by the Treasurer. The Advisor will also assist in security settlement.

I. Ethics and Conflicts of Interest
The Treasurer and any designated employees are prohibited from personal business activity that could conflict with the proper execution of the investment program, or which could impair their ability to make impartial investment 34 ATTACHMENT B
decisions, or which could give the appearance thereof. Employees and investment officials shall disclose any material interests in financial institutions w
ith which they conduct business to the Treasurer. They shall further disclose any personal financial/investment positions that could be related to the performance of the investment portfolio. Furthermore, these same individuals are prohibited from undertaking personal investment transactions with any individual with whom business is conducted on behalf of the City. The State of Cal
ifornia Fair Political Practices Commission Statement of Economic Interests, Form 700, shall be completed on an annual basis by the Treasurer and any designee of the Treasurer.

II. Internal Controls
The Treasurer is responsible for establishing and maintaining a control structure designed to ensure that the assets of the City are protected from loss, theft or misuse. The internal control structure shall be designed to provide reasonable assurance that these objectives are met. Internal controls shall separate transaction authority from accounting and record keeping, safekeeping assets, and maintain written records for all investments and wire transfers.

A. Objectives of Internal Control
Internal control is the plan of organization and all the related systems established by management’s objective of ensuring, as far as practicable:
 Orderly and efficient conduct of its business, including adherence to management policies.
 Safeguarding of assets.
 Prevention and detection of errors and fraud.
 Accuracy and completeness of the accounting records; and  Timely preparation of reliable financial information.

An internal control system, however elaborate, can provide only reasonable assurance that the objectives are met. Internal controls are reviewed periodically to ensure effectiveness.

III. Reporting
A. Monthly: As described in California Government Code section 53607, a report of investment transactions will be made to the City Council monthly.

B. A report shall be rendered to the City Manager, City Council, and City Auditor at least four times per fiscal year and shall include:
35 ATTACHMENT B
 A complete description of the portfolio, the type of investments, the issuers, maturity dates, par and dollar amounts invested in all securities, the current market values of each component of the portfolio, the source of the portfolio valuation, investments and monies held by the City.
 A description of any of the City’s funds, investments, or programs that are under the management of contracted parties, including lending programs.
 The following certifications:
 All investment actions executed since the last report have been made in full compliance with the Investment Policy.
 The City of Stockton will meet its expenditure obligations for the next six months as described in California Government Code section 53646(b)(3).

RESPONSIBILITIES
The Chief Financial Officer is responsible for implementation of financial policies related to the subject matter of City Council Policy Title – 5 Financial Management.

RELEVANT AUTHORITY
California Government Code section 53607 allows for the delegation of investment activities to the Treasurer of the City for periods of one year. That delegation, subject to review, is renewable on an annual basis and is to be included as part of the adoption of the annual budget to have the authority in place at July 1 of each year.

Chapter 2.20.050 of the City of Stockton Municipal Code (SMC) defines “Treasurer” as the Director of Administrative Services. Chapter 2.20.060 of the SMC provides that management responsibility for the investment program is delegated to the Administrative Services Director.

Under the provision of California Government Code section 53600.3, the Treasurer is a trustee and therefore a fiduciary subject to the prudent investor standard outlined in the section below.

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.

Such an external manager may be granted discretion to purchase and sell investment securities in accordance with this Investment Policy. Such managers must be registered under the Investment Advisers Act of 1940.
36 ATTACHMENT B

RELATED ADMINISTRATIVE DIRECTIVE, CITY POLICY, CITY PROCEDURE Chapter 17.01 – Citywide Directive – Financial Management Chapter 17.01 – Citywide Policy 17.01.030

RELATED FORMS, DOCUMENTS, OR LINKS
Not applicable

FREQUENTLY ASKED QUESTIONS
Not applicable

UPDATE HISTORY
Not applicable
37 ATTACHMENT C

POLICY
It is the policy of the City of Stockton to invest funds in a manner which will provide foremost for the safety of principal while meeting the short and long term cash flow demands of the City and conforming to all statutes governing the investment of City funds.

I. Scope
This Investment Policy applies to all cash, operating, and surplus funds included within the City’s audited financial statements and held directly by the City.

Bond proceeds shall be invested in accordance with the governing bond documents (e.g. official statement and trust indenture). Proceeds of City bonds or other debt issues in possession of a trustee or fiscal agent are not considered to be part of the financial assets covered by these Investment Policy guidelines.

Also excluded from this Policy are any deferred compensation, retirement, Section 115 Trust, and Other Post Employment Benefit Plans. Investments related to these plans are not subject to this policy since third-party administrators or trustees manage the funds, and, either the individual plan participants or outside investment managers or trustees direct investment selections under the guidelines established by the plan documents.

II. Prudence
Investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in the management of their own affairs; not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived.

Investments shall be made in accordance with the “Prudent Investor” standard, as described in California Government Code Section 53600.3, which states: “Except as provided in subdivision (a) of Section 27000.3, all governing bodies of local agencies or persons authorized to make investment decisions on behalf of those local agencies investing public funds pursuant to this chapter are trustees and therefore fiduciaries subject to the prudent investor standard. When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act SUBJECT: INVESTMENT POLICY NUMBER:

17.01.030
RESPONSIBLE OFFICER:

City Manager
EFFECTIVE DATE:
10/30/17
POLICY OWNER:

Administrative Services Department
LAST UPDATED:

POLICY CONTACT:

CFO, Administrative Department, City Treasurer
APPROVED:

INVESTMENT Chapter 17.01.030

38 ATTACHMENT C

with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency. Within the limitations of this section and considering individual investments as part of an overall strategy, investments may be acquired as authorized by law.” III. Objectives
Within the overriding requirement of compliance with all Federal, State and local laws governing the investment of moneys under the control of the Treasurer, and as specified in the California Government Code Section 53600.5, when investing, reinvesting, purchasing, acquiring, exchanging, selling and managing public funds, the primary objectives, in priority order, of the investment activities shall be:

1. Safety. Safety of principal is the foremost objective of the investment program.

Investments shall be undertaken in a manner that seeks to ensure the preservation of capital in the portfolio.

2. Liquidity. The investment portfolio will remain sufficiently liquid to enable the City to meet all operating requirements which might be reasonably anticipated.

3. Return on Investment. The City’s investment portfolio shall be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the City’s investment risk constraints and cash flow requirements.

IV. Delegation of Authority
California Government Code Section 53607 allows for the delegation of investment activities to the Treasurer of the City for periods of one year. The Treasurer shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate officials, and their procedures in the absence of the Treasurer. The delegation, subject to review, is renewable on an annual basis and is to be included as part of the adoption of the annual budget to have the authority in place at July 1 of each year.

The Treasurer may delegate the day-to-day execution of investments to a Securities and Exchange Commission (SEC)-registered investment advisor, via written agreement approved by City Council.

The Advisor, in coordination with the Treasurer, will manage the City’s investment portfolio in accordance with this Investment Policy, the stated investment objectives of the City, and any such other written instructions provided by the Treasurer. The Advisor will also assist in security settlement.

V. Ethics and Conflicts of Interest
The Treasurer and any designated employees are prohibited from personal business activity that could conflict with the proper execution of the investment program, or which could impair their ability to make impartial investment decisions, or which could give the appearance thereof. Employees and investment officials shall disclose any material interests in financial institutions with which they conduct business to the Treasurer. They shall further disclose any personal financial/investment positions that could be related to the performance of the investment portfolio. Furthermore, these same individuals are prohibited from undertaking personal investment transactions with any individual with whom business is conducted on behalf of the City. The State of California Fair 39 ATTACHMENT C

Political Practices Commission Statement of Economic Interests, Form 700, shall be completed on an annual basis by the Treasurer and any designee of the Treasurer.

VI. Internal Controls
The Treasurer is responsible for establishing and maintaining a control structure designed to ensure that the assets of the City are protected from loss, theft or misuse. The internal control structure shall be designed to provide reasonable assurance that these objectives are met. Internal controls shall separate transaction authority from accounting and record keeping, safekeep assets, and maintain written records for all investments and wire transfers.

A. Objectives of Internal Control
Internal control is the plan of organization and all the related systems established by management’s objective of ensuring, as far as practicable:
 Orderly and efficient conduct of its business, including adherence to management policies.
 Safeguarding of assets.
 Prevention and detection of errors and fraud.
 Accuracy and completeness of the accounting records; and  Timely preparation of reliable financial information.

An internal control system, however elaborate, can provide only reasonable assurance that the objectives are met. Internal controls are reviewed periodically to ensure effectiveness.

VII. Reporting
A. Monthly: As described in California Government Code Section 53607, a report of investment transactions will be made to the City Council on a monthly basis.

B. A report shall be rendered to the City Manager, City Council and City Auditor at least four times per fiscal year and shall include:
 A complete description of the portfolio, the type of investments, the issuers, maturity dates, par and dollar amounts invested on all securities, the current market values of each component of the portfolio, the source of the portfolio valuation, investments and monies held by the City.
 A description of any of the City’s funds, investments, or programs that are under the management of contracted parties, including lending programs.  The following certifications:
 All investment actions executed since the last report have been made in full compliance with the Investment Policy.
 The City of Stockton will meet its expenditure obligations for the next six months as described in California Government Code Section 53646(b)(3).

C. Both monthly and quarterly reports shall be made publicly available in the City Clerk’s Office, on the City Website or other appropriate means.
40 ATTACHMENT C

VIII. Authorized and Suitable Investments
The City’s investments are governed by California Government Code, Sections 53600, et seq.

Within the investments permitted by the Code, the City seeks to further restrict eligible investments to the guidelines listed below. In the event a discrepancy is found between this policy and the Code, the more restrictive parameters will take precedence. All percentage holding limits and rating requirements listed in this section apply at the time the security is purchased. A security purchased in accordance with this section shall not have a forward settlement date exceeding 45 days from the time of investment.

Any investment currently held at the time the policy is adopted which does not meet the new policy guidelines can be held until maturity and shall be exempt from the current policy. At the time of the investment’s maturity or liquidation, such funds shall be reinvested only as provided in the current policy.

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

Securities with term to maturity greater than 5 years shall not exceed 30% of total portfolio value.

A. Municipal Securities including Registered state warrants or treasury notes or bonds of this state, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by the state or by a department, board, agency, or authority of the state.

Bonds, notes, warrants, or other evidences of indebtedness of a local agency within this state, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by the local agency, or by a department, board, agency, or authority of the local agency.

Registered treasury notes or bonds of any of the other 49 states in addition to California, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by a state or by a department, board, agency, or authority of any of the other 49 states, in addition to California.
 The securities are rated in a rating category of “A” or the equivalent or higher by at least one nationally recognized statistical rating organization (“NRSRO”).  No more than 5% of the portfolio may be invested in any single issuer.  No more than 30% of the portfolio may be in Municipal Securities.  The maximum maturity does not exceed ten (10) years.

B. United States Treasury notes, bonds, bills, or certificates of indebtedness, or those for which the full faith and credit of the United States are pledged for the payment of principal and interest.  There are no limits on the maturity, dollar amount or percentage that the City may invest in U.S. Treasuries

C. Federal Agencies or United States Government-Sponsored Enterprise (GSE) obligations, participations, or other instruments, including those issued by or fully guaranteed as to principal and interest by federal agencies or United States government-sponsored enterprises. 41 ATTACHMENT C

 Includes agency-backed mortgage-backed securities, mortgage pass-through securities, and collateralized mortgage obligations.
 There are no limits on the maturity, dollar amount or percentage that the City may invest in Federal Agency or Government-Sponsored Enterprises (GSEs), provided that:
 No more than 20% of the portfolio may be invested in federal agency or GSE issued mortgage-backed securities, mortgage pass -through securities, and collateralized mortgage obligations.

D. Banker’s Acceptances otherwise known as bills of exchange or time drafts that are drawn on and accepted by a commercial bank.
 Issued by institutions which have short-term debt obligations rated “A-1” or higher by at least one NRSRO; or long-term debt obligations which are rated in a rating category of “A” or the equivalent or higher by at least one NRSRO, provided that:
 No more than 40% of the portfolio may be invested in Banker’s Acceptances.  No more than 5% of the portfolio may be invested in any single issuer.  The maximum maturity does not exceed 180 days.

E. Commercial Paper of “prime” quality of the highest ranking or of the highest letter and number rating as provided for by a nationally recognized statistical rating organization (NRSRO). The entity that issues the commercial paper shall meet all of the following conditions in either paragraph (1) or (2):
(1) The entity meets the following criteria:
(A) Is organized and operating in the United States as a general corporation. (B) Has total assets in excess of five hundred million dollars ($500,000,000). (C) Has debt other than commercial paper, if any, that is rated in a rating category of “A” or its equivalent or higher by an NRSRO.
(2) The entity meets the following criteria:
(A) Is organized within the United States as a special purpose corporation, trust, or limited liability company.
(B) Has 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.

Commercial paper that meets the above requirements is permitted, provided that:
 The securities are rated “A-1” or higher by at least one NRSRO.  No more than 40% of the portfolio may be invested in commercial paper.  No more than 5% of the portfolio may be invested in any single issuer.  The maximum maturity does not exceed 270 days.

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

42 ATTACHMENT C

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

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

I. Certificate of Deposit Placement Service (CDARS), provided that:
 No more than 20% of the total portfolio may be invested in a combination of federally insured time deposits, collateralized time deposits, and CDARS.  The maximum maturity does not exceed five (5) years.

J. Collateralized Bank Deposits. City’s deposits with financial institutions will be collateralized with pledged securities per California Government Code, Section 53651.

K. Repurchase Agreements collateralized with securities authorized under California Government Code, maintained at a level of at least 102% of the market value of the Repurchase Agreement.

There are no limits on the dollar amount or percentage that the City may invest, provided that:
 Securities used as collateral for Repurchase Agreements will be delivered to an acceptable third party custodian.
 Repurchase Agreements are subject to a Master Repurchase Agreement between the City and the provider of the repurchase agreement. The Master Repurchase Agreement will be substantially in the form developed by the Sec urities Industry and Financial Markets Association.
 The maximum maturity does not exceed one (1) year.

L. State of California Local Agency Investment Fund (LAIF).  The City may invest up to the maximum amount permitted by LAIF.  LAIF’s investments in instruments prohibited by or not specified in the City’s policy do not exclude the investment in LAIF itself from the City’s list of allowable investments, provided LAIF’s reports allow the Treasurer to adequately judge the risk inherent in LAIF’s portfolio.

M. California Asset Management Program
N. Medium Term Notes (MTNs) defined as all corporate and depository institution debt securities with a maximum remaining maturity of five years or less, issued by corporations organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States, provided that:
43 ATTACHMENT C

 The securities are rated in a rating category of “A” or the equivalent or higher by at least one NRSRO.
 No more than 30% of the total portfolio may be invested in MTNs.  No more than 5% of the portfolio may be invested in any single issuer.  The maximum maturity does not exceed five (5) years.

O. A pay-through bond, equipment lease-backed certificate, consumer receivable pass-through certificate, or consumer receivable-backed bond of a maximum remaining maturity of five years’ or less, provided that:
 The securities are rated in a rating category of “AA” or the equivalent or higher by a NRSRO.
 No more than 20% of the total portfolio may be invested in these securities.  No more than 5% of the portfolio may be invested in any single Asset -Backed security issuer.
 The maximum legal final maturity does not exceed five (5) years.

P. Shares of beneficial interest issued by diversified management companies that are money market funds registered with the Securities and Exchange Commission under the Investment Company Act of 1940 (15 U.S.C. Sec. 80a-1 et seq.). Money market funds eligible under this paragraph are restricted to those which invest solely in US Government and Agency securities, provided that:
 Such Funds meet either of the following criteria:

A. Have attained the highest ranking or the highest letter and numerical rating provided by not less than two (2) NRSROs; or
B. Have retained an investment adviser registered or exempt from registration with the Securities and Exchange Commission with not less than five years’ experience investing in the securities and obligations authorized by California Government Code, Section 53601 and with assets under management in excess of $500 million.  No more than 20% of the total portfolio may be invested in Money Market Funds.

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

IX. Review of Investment Portfolio
All securities purchased by the City must be in compliance with Section VIII Authorized and Suitable Investments at the time of purchase. Because some securities may not comply with Section VIII Authorized and Suitable Investments subsequent to the date of purchase, the Treasurer shall at least annually review the portfolio to identify those securities that do not comply.

Any investment currently held that becomes non-compliant due to a change of the policy after its acquisition will not have to be sold immediately. As long as investments are compliant at the time of purchase they are acceptable to hold to maturity if that is the Treasurer’s decision. It is not, 44 ATTACHMENT C

however, acceptable to reinvest the proceeds of those maturities in any investment that does not meet the most current Investment Policy guidelines. The Treasurer shall establish procedures to report to the City Council and to its oversight committee, should one exist, any incidences of noncompliance identified through the review of the portfolio.

X. Investment Pools/Mutual Funds
A thorough investigation of any permitted pool/fund is required prior to investing, along with periodic due diligence reviews at least annually. The prospectus, program guide or offering statement shall be reviewed to ensure compliance with the following criteria:

1. A description of eligible investment securities, and a written statement of investment policy and objectives.

2. A description of interest calculations and how it is distributed, and how gains and losses are treated.

3. A description of how the securities are safeguarded (including the settlement processes), and how often the securities are priced and the program audited.

4. A description of who may invest in the program, how often, what size deposit and withdrawal are allowed.

5. A schedule for receiving statements and portfolio listings.

6. Are reserves, retained earnings, etc. utilized by the pool/fund?

7. A fee schedule, and when and how is it assessed.

8. Is the pool/fund eligible for bond proceeds and/or will it accept such proceeds?

XI. Collateral Requirements
California Government Code Sections 53652 and 53667 require depositories to post certain types and levels of collateral for public funds on deposit above the FDIC insurance amounts. The collateral requirements apply to bank deposits, both active (checking and savings accounts) and inactive (non- negotiable time certificates of deposit), and to repurchase agreements.

The City chooses to limit collateral to the following: U.S. Treasuries and Federal Agency Obligations.

Collateral will always be held by an independent third party with whom the City has a current custodial agreement. A clearly marked evidence of ownership (safekeeping receipt) must be supplied to the City and retained. The right of collateral substitution may be granted.

XII. Authorized Financial Institutions and Dealers
A. For brokers/dealers of government securities and other investments, the Treasurer shall select only brokers/dealers who are licensed and in good standing with the California Department of Securities, the Securities and Exchange Commission, and/or Financial Industry Regulatory Authority, Inc. (FINRA). Before engaging in investment transactions with a broker/dealer, the Treasurer shall obtain a signed verification form that attests the individual reviewed the City’s Investment Policy, and intends to present only those investment recommendations and transactions to the City that is appropriate under the terms and conditions of the Investment Policy.

B. The City may engage the services of one or more external managers to assist in the management of the City’s investment portfolio. Such external managers may be granted discretion to purchase and sell investment securities in accordance with this Investment Policy. 45 ATTACHMENT C

External managers may use their own list of approved broker-dealers. Such managers must be registered under the Investment Advisers Act of 1940.

C. Public deposits shall be made only in qualified public depositories within the State of California as established by State law. Deposits shall be insured by the Federal Deposit Insurance Corporation (FDIC), or, to the extent the amount exceeds the insured maximum, shall be collateralized with securities in accordance with State law.

D. The Administrative Services Department shall verify investment trades against the bank transactions and broker confirmation tickets to ensure accuracy. On a monthly basis, the custodial asset statement shall be reconciled with the month end portfolio holdings.

XIII. Maximum Allowable Maturity of Investments
The investment program may include investments with maturities beyond five years, if in the judgment of the Treasurer, such investments should result in a more favorable rate of return for the City. Per California Government Code Section 37354, donated securities are not subject to maturity limits. Investments maturing beyond a five-year horizon should not exceed 30% of the total portfolio value at any given time. Investments of greater than five years shall be permitted for US Treasury, US Agency or GSE obligations, and municipal securities, as described in Section VIII Authorized and Suitable Investments, paragraphs A, B and C. Additionally, investments in City Variable Rate obligations, with maturities greater than five years, may be made when IRS and SEC guidelines permit. For purposes of compliance with this Policy, an investment’s term or remaining maturity shall be measured from the settlement date to final maturity.

XIV. Mitigating Risk in the Portfolio
A. Credit Risk
 The City will diversify its investments to diminish the credit risk resulting from concentrations in any one non-governmental issuer.
 If a security owned by the City is downgraded to a level below the quality required for purchase by this Policy, the Treasurer shall review the credit situation and make a determination as to whether to sell or retain such securities in the portfolio.

B. Market Risk. While the City recognizes that longer term portfolios achieve higher returns, longer term portfolios also have higher volatility of market values and total return. The City will limit market risk by limiting the concentrations, volume and duration of its longer term investments, as well as limiting them to funds which are not needed for current year cash flow purposes.  Maturities selected shall provide for stability of income and liquidity.  Portfolio maturities shall be managed to avoid undue concentration in any specific maturity.
 The City may sell a security prior to its maturity (recording a gain or loss) to diminish the portfolio’s exposure to market risk.

C. Diversification is required that potential losses on individual securities do not exceed the income generated from the remainder of the portfolio.

D. The City may sell a security prior to its maturity (recording a gain or loss) to adjust the portfolio duration or improve the risk structure, liquidity or yield of the portfolio in response to market condition or City needs.
46 ATTACHMENT C

XV. Safekeeping and Delivery
A. To protect against fraud, embezzlement, or losses caused by collapse of individual securities dealers, all securities owned by the City shall be held in safekeeping by the City’s custodial bank, a third party bank trust department, acting as agent for the City under the terms of a custody agreement.

B. All security transactions entered into by the City shall be conducted on a standard delivery- versus-payment basis, which ensures that securities are deposited with the third party custodian prior to the release of funds. All securities purchased or acquired shall be delivered to the City by book entry, physical delivery or by third party custodial agreement as required by California Government Code Section 53601. Investments in the State Pool, California Asset Management Program, or money market mutual funds are undeliverable, and are not subject to third party safekeeping requirements.

XVI. Diversification
The City’s investments shall be diversified by:
 Limiting investments to avoid over concentration in securities from a specific issuer or business sector (excluding U.S. Treasury securities).
 Limiting investment in securities that have higher credit risks.  Investing in securities with varying maturities.
 Continuously investing a portion of the portfolio in readily available funds such as money market funds to ensure that appropriate liquidity is maintained to meet ongoing obligations.

XVII. Performance Evaluation and Operations Audit
Investment of City funds is governed by the California Government Code Section 53600, et seq.

Within the context of those limitations, the analysis and selection of investments includes prudent investment principals, review of investment performance, current and expected interest rate yields (economic and interest rate trends), diversification, and structured maturity composition to meet necessary cash flow requirements.

The investment performance objective for the portfolio shall be to earn a total rate of return over a market cycle which is approximately equal to the return on a market benchmark which reflects the City’s investment objectives and risk preferences.

The Treasurer shall ensure that the City’s annual process of independent review by an external auditor will include a review to assure full compliance with this investment policy and a review of acceptable internal controls.

XVII. Investment Policy Adoption

As stated in California Government Code Section 53646(2)(b), the Treasurer may annually render to the City Council a statement of Investment Policy, and any changes thereto, for consideration at a public meeting.

47 ATTACHMENT C

Glossary
AGENCIES: Federal agency securities and/or government-sponsored enterprises (GSEs).

ASK PRICE: The price at which securities are offered.

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

BENCHMARK: A `market index used as a comparative base for measuring the relative performance of the investment portfolio. A benchmark should represent a close correlation to the level of risk and the average duration of the portfolio’s investments.

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

BROKER/DEALER: A person or firm in the business of buying and selling securities from/to customers.

CERTIFICATE OF DEPOSIT (CD): A time deposit with a specific maturity evidenced by a Certificate.

Large-denomination 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.

COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR): The official annual report of a public body. It includes five combined statements for each individual fund and account group prepared in conformity with GAAP. It also includes supporting schedules necessary to demonstrate compliance with finance-related legal and contractual provisions, extensive introductory material, and a detailed Statistical Section.

COUPON: The annual rate of interest that a bond’s issuer promises to pay the bondholder on the bond’s face value.

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

DELIVERY VERSUS PAYMENT: Delivery of securities with a simultaneous exchange of money 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, or (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 value when quoted at lower than face value.

DISCOUNT SECURITIES: Non-interest-bearing money market instruments that are issued a discount and redeemed at maturity for full face value (e.g., U.S. Treasury Bills.) The difference between the discounted purchase price and the maturity value represents the interest earnings on the investment.

DIVERSIFICATION: Dividing investment funds among a variety of sectors, securities, or maturities that offer independent returns.

DURATION: A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. Duration is expressed as a number of years. Rising interest rates mean falling bond prices, while declining interest rates mean rising bond prices. 48 ATTACHMENT C

FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC): A federal agency that insures bank deposits, currently up to $250,000 per entity.

FEDERAL FUNDS RATE: The interest rate at which depository institutions lend reserve balances to other depository institutions overnight. This rate is pegged by the Federal Reserve.

FEDERAL HOME LOAN BANK (FHLB) SYSTEM: A system of 11 regional banks from which local lending institutions across the U.S. borrow funds to finance housing, economic development, infrastructure and jobs. There are approximately 7,100 FHLB System members, including commercial banks, thrifts, credit unions, and insurance companies. Each member is a shareholder in one of the regional FHLBs; each regional Bank is an individual corporate entity, which must meet strict management and capitalization criteria befitting its status as a government-sponsored enterprise.

FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA or Fannie Mae): Fannie Mae is a government-sponsored enterprise (“GSE”) chartered by Congress. It serves as a stable source of liquidity for purchases of homes and financing of multifamily rental housing, as well as for refinancing existing mortgages. It also supports the liquidity and stability of the U.S. mortgage market primarily by securitizing mortgage loans originated by lenders into Fannie Mae mortgage-backed securities that it guarantees, which are referred to as Fannie Mae MBS.

FEDERAL OPEN MARKET COMMITTEE (FOMC): A committee within the Federal Reserve System (the Fed), that is charged under U.S. law with overseeing the nation's open market operations (i.e., the Fed's buying and selling of United States Treasury securities. It consists of seven members of the Federal Reserve Board and five of the twelve Federal Reserve Bank Presidents, who serve on a rotating basis.

The Committee meets about 8 times per year to set Federal Reserve monetary policy, including establishing the target for the fed funds rate.

FEDERAL RESERVE SYSTEM: The central bank of the United States . It was created by Congress and consists of a seven member Board of Governors in Washington, D.C., 12 regional banks and about 7 ,000 commercial banks that are members of the system. Its role is to conduct the nation's monetary policy , maintain the stability of the financial system , supervise and regulate financial institutions, foster payment and settlement system safety and efficiency , and promote consumer protection and community development.

GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA or Ginnie Mae): Securities influencing the volume of bank credit guaranteed by GNMA and issued by mortgage bankers, commercial banks, savings and loan associations, and other institutions. Security holder is protected by full faith and credit of the U.S. Government. Ginnie Mae securities are backed by the FHA, VA or FHA mortgages. The term “pass-throughs” is often used to describe Ginnie Maes.

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. LOCAL GOVERNMENT INVESTMENT POOL (LGIP):

The aggregate of all funds from political subdivisions that are placed in the custody of the State Treasurer for investment and reinvestment.

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 transactions between the parties to a repurchase or reverse repurchase agreement. It establishes each party’s rights in the transactions, 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 value of an investment becomes due and payable. 49 ATTACHMENT C

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

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

PRIMARY DEALERS: Banks and securities broker-dealers designated by the Federal Reserve Bank of New York that permit them to trade in U.S. Government securities directly with the Fed in its implementation of monetary policy. They are also expected to make markets for the New York Fed on behalf of its official accountholders as needed, and to bid on a pro-rata basis in all Treasury auctions at reasonably competitive prices.

PRUDENT PERSON RULE: An investment standard. In some states the law requires that a fiduciary, such as a trustee, may invest money only in a list of securities selected by the custody state—the so-called legal list. In other states the trustee may invest in a security if it is one which would be bought by a prudent person of discretion and intelligence who is seeking a reasonable income and preservation of capital.

RATE OF RETURN: The actual realized return on an investment or portfolio of investments over a specified period of time.

REPURCHASE AGREEMENT (REPO): A transaction in which an investor purchases securities from a counterparty with a simultaneous agreement to sell them back at a fixed price on a fixed date in the future.

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 for this by paying an implied rate of interest for the term of the repo.

REVERSE REPURCHASE AGREEMENT (REVERSE REPO): The opposite transaction to a repo. A reverse-repurchase agreement (reverse repo) involves a counterparty borrowing cash from a financial institution in exchange for a temporary sale of securities used as collateral. The borrower agrees to repurchase the securities at a specified date for an agreed upon price, which includes interest. While a repo is a straightforward investment of funds, the reverse repo is a borrowing which can be used to fund a temporary cash shortage, or to create leverage.

SAFEKEEPING: A fee-based service provided by banks to hold and safeguard customer assets and investments.

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

SECURITIES & EXCHANGE COMMISSION: An independent, federal government agency responsible for protecting investors, maintaining fair and orderly functioning of securities markets, and facilitating capital formation. It is also the responsibility of the Commission to interpret and enforce federal securities laws, issue new rules and amend existing rules, oversee the inspection of securities firms, brokers, investment advisers, and ratings agencies, oversee private regulatory organizations in the securities, accounting, and auditing fields, and coordinate U.S. securities regulation with federal, state, and foreign authorities.

SEC RULE 15(C)3-1: See Uniform Net Capital Rule.

STRUCTURED NOTES: Complex notes typically issued by Government Sponsored Enterprises (FHLB, FNMA, etc.) and corporations, which have imbedded options or other complications (e.g., variable coupons, derivative-based returns) that can significantly affect their performance. 50 ATTACHMENT C

TREASURY BILLS: A non-interest-bearing short-term discount security issued by the U.S. Treasury to finance the national debt. Most T-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 maturities of more than 10 years.

TREASURY NOTES: Medium-term coupon-bearing U.S. Treasury securities issued as direct obligations of the U.S. Government and having initial maturities from two to 10 years.

UNIFORM NET CAPITAL RULE: Securities and Exchange Commission requirement that member firms as well as nonmember broker-dealers in securities maintain a maximum ratio of indebtedness to liquid capital of 15 to 1; also called net capital rule and net capital ratio. Indebtedness covers all money owed to a firm, including margin loans and commitments to purchase securities, one reason new public issues are spread among members of underwriting syndicates. Liquid capital includes cash and assets easily converted into cash.

YIELD: The rate of annual income return on an investment, expressed as a percentage. (a) INCOME YIELD is obtained by dividing the current dollar income by the current market price for the security. (b) NET YIELD or YIELD TO MATURITY is the current income yield minus any premium above par or plus any discount from par in purchase price, with the adjustment spread over the period from the date of purchase to the date of maturity of the bond.

51 ATTACHMENT C

RESPONSIBILITIES
City Treasurer for implementation of this policy.

RELEVANT AUTHORITY
California Government Code Section 53607 allows for the delegation of investment activities to the Treasurer of the City for periods of one year. That delegation, subject to review, is renewable on an annual basis and is to be included as part of the adoption of the annual budget to have the authority in place at July 1 of each year.

Chapter 2.20.050 of the City of Stockton Municipal Code (SMC) defines “Treasurer” as the Director of Administrative Services. Chapter 2.20.060 of the SMC provides that management responsibility for the investment program is delegated to the Administrative Services Director. Under the provision of California Government Code Section 53600.3, the Treasurer is a trustee and therefore a fiduciary subject to the prudent investor standard outlined in the section below.

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. Such an external manager may be granted discretion to purchase and sell investment securities in accordance with this Investment Policy. Such managers must be registered under the Investment Advisers Act of 1940.

RELATED CITY POLICIES

FAIR POLITICAL PRACTICES COMMISSION

RELATED CITY PROCEDURES

RELATED FORMS, DOCUMENTS, OR LINKS

FAIR POLITICAL PPRACTICES COMMISSION

FREQUENTLY ASKED QUESTIONS

UPDATE HISTORY

52 City of Stockton
Legislation Text
File #: 23-0615, Version: 1

ADOPT A RESOLUTION APPROVING THE DISPLAY OF THE PRIDE FLAG IN

COMMEMORATION OF PRIDE MONTH

RECOMMENDATION
It is recommended that the City Council adopt a resolution authorizing the City of Stockton to display the Pride Flag from June 21, 2023, to June 28, 2023, in commemoration of Pride Month.

Summary
At the City Council meeting of November 5, 2019, Council Policy 2.07, Flag Display Policy was adopted. The policy aims to protect the City’s ability to regulate what flags are displayed on City flagpoles by treating the display of commemorative flags as government speech and formally declaring that City flagpoles are not intended to serve as a forum for free expression by the public.

DISCUSSION
Background
Traditionally, the City of Stockton has displayed the United States Flag, the California State Flag, and the City of Stockton Flag on the flagpole located at Stockton City Hall. There are both Federal and State regulations which dictate how the United States Flag, and the California Flag must be displayed. With the adoption of Council Policy 2.07, the City created its own policy regarding the display of flags, including the display of the City of Stockton Flag, the flags of other nations or cities, or any commemorative flags. The maximum display of commemorative flags is limited to seven (7) continuous days.

Present Situation
Council Policy 2.07 defines “Commemorative Flags” as follows:
“Commemorative Flag” shall mean any flag which identifies with a specific date, historical event, cause, nation or group of people, whereby the City honors or commemorates the date, event, cause, nation or people by flying the flag.

Flags which honor or commemorate a specific event, cause, or organization, displayed on City property may implicate the First Amendment. Accordingly, to protect the City’s ability to regulate what flags are displayed on City flagpoles, the Flag Display Policy formally declares that City flagpoles are not intended to serve as a forum for free expression by the public. Additionally, the policy specifically provides that commemorative flags may be flown only as authorized by the City Council as an expression of the City’s official sentiments.

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53 File #: 23-0615, Version: 1
In accordance with Council Policy 2.07, Councilmember Wright requested that the City Clerk agendize a request to display the Pride Flag in commemoration of Pride month for consideration by the full Council. Pursuant to Council Policy 2.07, the City Council may, by resolution, direct City staff to display Commemorative Flags as an expression of the City’s official sentiments.

FINANCIAL SUMMARY
There is no financial impact on the City of Stockton related to this agenda item.

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54 Resolution No.

STOCKTON CITY COUNCIL

ADOPT A RESOLUTION APPROVING THE DISPLAY OF THE PRIDE FLAG IN

COMMEMERATION OF PRIDE MONTH

City Council Policy 2.07 regulates the display of National, State, and other flags; and

The policy clearly states that the City of Stockton flagpoles located at City -owned buildings and facilities are not intended to serve as a forum for free expression of the public; and

The City Council may, by reso lution, direct staff to display commemorative flags as an expression of the City’s official sentiments; and

The C ity Council desires to display ceremonial flags consistent with the City’s ongoing and strategic priorities, now, therefore,

BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF STOCKTON, AS FOLLOWS:

The City Council authorizes the City to display the Pride Flag in commemoration of Pride Month from June 21, 2023 to June 28, 2023.

PASSED, APPROVED, and ADOPTED June 20, 2023 .

KEVIN J. LINCOLN II
Mayor of the City of Stockton
ATTEST:

ELIZA R. GARZA, CMC
City Clerk of the City of Stockton

55 City of Stockton
Legislation Text
File #: 23-0576, Version: 1
ADOPT AN ORDINANCE AMENDING TITLE 2, CHAPTER 2.94 OF THE STOCKTON MUNICIPAL

CODE REGARDING THE STOCKTON ARTS COMMISSION, ADDING A YOUTH

COMMISSIONER, REMOVING THE PUBLIC ART STANDING COMMITTEE, AND APPROVING STOCKTON ARTS COMMISSION ANNUAL PLAN FOR FISCAL YEAR 2023-24.

RECOMMENDATION
It is recommended that the City Council approve a motion to:

1. Adopt an Ordinance amending Title 2, Chapter 2.94, of the Stockton Municipal Code (SMC) relating to the Stockton Arts Commission to add a Youth Commissioner and remove the requirement for the Public Art Standing Committee.

2. Approve the Stockton Arts Commission (Commission) Annual Plan for Fiscal Year 2023-24.

3. Authorize the City Manager, or designee, to take all appropriate and necessary actions to carry out the purpose and intent of the motion.

Summary
The Legislation/Environmental Committee (“Committee”) requested information regarding the requirements relating to the Stockton Arts Commission on November 16, 2022. SMC Chapter 2.94 regulates the Stockton Arts Commission. Currently, the ordinance has no provisions for a youth commissioner.

On April 19, 2023, the Committee reviewed the Stockton Arts Commission ordinance and requested a change to add a Youth Commissioner. The Committee requested that an ordinance be proposed to address that change. The Committee directed staff to review the ordinance, identify proposed changes, and bring it to the City Council for review and approval.

Upon review of the ordinance, staff identified one additional revision to the Standing Committee for Public Art. Staff recommend removing the standing committee but allowing for ad hoc committees as needed. Accordingly, the proposed changes to the SMC will provide a youth commissioner and remove the Public Art standing committee. The ordinance, once passed, would be in effect after 30 days.

The Committee also reviewed the Stockton Arts Commission Annual Plan for the Fiscal Year 2023-24 (“Annual Plan”) and directed staff to bring the Annual Plan to City Council for review and approval.

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DISCUSSION
Background
At its November 16, 2022, meeting, the Committee requested information regarding the Stockton Arts Commission. Specifically, the Committee asked to review the Commission budget and ordinance at a future meeting.

The Stockton Arts Commission held a workshop on February 9, 2023, to develop their Annual Plan for Fiscal Year 2023-24. During this meeting, the Commission discussed adding a Youth Commissioner to the Commission.

On April 19, 2023, staff presented changes proposed by the Stockton Arts Commission and the proposed Annual Plan (“Attachment A - Annual Plan for Fiscal Year 2023-24”) to the Committee. The Committee reviewed, discussed, and directed staff to review their comments and bring the proposed changes and Annual Art Plan for Fiscal Year 2023-24 to City Council for approval.

After the Committee meeting, staff performed a further review of the ordinance and proposed an additional revision. Per the current ordinance, the Commission must create and maintain a standing committee for public art. Since there are limited public art items for this committee to discuss annually, it would be more productive and efficient for the Commission to remove the requirement for a standing committee and allow the Stockton Arts Commission to create a public art subcommittee in the same manner as other subcommittees or ad hoc committees are established.

Present Situation
The following changes to the Ordinance (Attachment B - Proposed Commission Ordinance (redline)) are recommended:

1. The Stockton Arts Commission recognizes the need for youth involvement in the Commission, therefore:
a. Section 2.94.040 Membership, Subsection A is edited to include one Youth Commissioner and updates the language to “Mayor and Council” to be more consistent with other Boards and Commissions.
b. Section 2.94.040 Membership Subsection B-3 is added to provide a term of office for one year from July 1 through June 30.
c. Section 2.94.040 Membership Subsection F is added to require Stockton residency for the Youth Commissioner.

2. Public art projects are not approved monthly, and staff recognize there is no longer a need for a Standing Committee for Public Art. The following proposed changes will still allow public art to be addressed by the full Commission when a project is contemplated. Therefore, the following changes remove references to the Public Art Subcommittee:

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57 File #: 23-0576, Version: 1
a. Section 2.94.060 Organization removes the Public Art Advisory standing committee and adds the appointment of ad hoc committees.
b. Section 2.94.070 Organization - Subsection D is edited to remove the Public Art Advisory Committee as a permanent subcommittee of the Commission. c. Section 2.94.070 Organization - Subsection E replaces the Public Art Advisory Committee with the Commission as the responsible party for the City Public Art Master Plan.
d. Section 2.94.070 Organization - Subsection F replaces the Public Art Advisory Committee with the Commission as the responsible party for approving and accepting artwork donated to the City.
e. Section 2.94.110 Public art funding for City projects - Subsection A replaces the Public Art Advisory Committee with the Commission as the responsible party for recommending public art funding to City Council as part of the annual art plan. f. Section 2.94.120 Public Art Fund - Uses of funds Subsection C- Maintenance Item 2 - replaces the Public Art Advisory Committee with the Commission as the responsible party for recommending surveys of the condition of Public Art.

At the direction of the Legislation/Environmental Committee, staff provide the attached ordinance changes and Proposed Annual Plan for Council review and approval.

FINANCIAL SUMMARY
There is no direct fiscal impact on the General Fund related to this action.

Attachment A - Proposed Commission Annual Plan for Fiscal Year 2023-24 Attachment B - Proposed Commission Ordinance (redline)
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58 The Stockton Arts Commission (Commission) serves as the arts advocacy commission for the City and a catalyst to support and strengthen community awareness, opportunities, and involvement in  arts  and  culture.  As  part  of  the  City’s  annual  budget  process,  the  Commission  develops  an Annual  Plan  which  describes  the  Commission’s goals  for  the  year,  including  any  initiatives, programs, and public art projects. The budget associated with the plan is submitted as part of the City’s annual budget process and is approved by the City Council.

THE FISCAL YEAR 2023‐24 ACTION PLAN
The Commission will:

1. Host a minimum of three (3) free art exhibits at the Civic Auditorium for local artists to showcase their work.

2. Provide artist grants to local artists and art organizations.

3. Launch a pilot mural program for City‐owned properties.

4. Install previously approved public art sculpture in Victory Park.

5. Create a recruitment and selection process for the new Youth Commissioner position.

6. Complete public art inventory.

ANNUAL PLAN
FISCAL YEAR 2023‐24

ATTACHMENT A
59 ATTACHMENT B
1 ORDINANCE NO. ________________

AN ORDINANCE AMENDING TITLE 2, CHAPTER 2.94, SECTIONS 2.94.030, 2.94.040,

2.94.060, 2.94.070, 2.94.110, AND 2.94.120 OF THE STOCKTON MUNICIPAL CODE

TO ADD A YOUTH COMMISSIONER TO THE STOCKTON ARTS COMMISSION AND REMOVE STANDING COMMITTEE FROM THE STOCKTON ARTS COMMISSION.

BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF STOCKTON, AS FOLLOWS:

SECTION I. AMENDMENT OF CODE.

Title 2, Chapter 2.94, Section 2.94.030 of the Stockton Municipal Code is hereby amended to read as follows:

2.94.030 Definitions.

“Annual art plan” means a plan developed by the Stockton Arts Commission on an annual basis which describes the Commission’s goals for the year and includes any initiatives, programs, and public art projects along with funding requests for each. The plan shall be submitted as part of the City’s annual budget process and be approved by the City Council.

“Annual report” means a document submitted annually to the City Council setting forth the Commission’s completed activities for the prior year and setting forth goals for the coming year.

“Artist” means a practicing professional skilled in the design and/or creative production of aesthetic objects whose qualifications are demonstrated by recognition or stature within their field, and/or through reputation, recognition, and/or exhibitions.

“Public Art Advisory” means a committee of the Stockton Arts Commission.

“Public art collection” means all City-owned artworks.

“Public Art Fund” means a separate account which is established by the City to receive monies appropriated to the Public Art Program.

“Public Art Program” means, generally, the processes and approach to establishing art elements in public projects and public places as established hereby and to projects funded through the Public Art Fund. (Ord. 2015-12-08-1209 C.S. § 1)

SECTION II. AMENDMENT OF CODE.

Title 2, Chapter 2.94, Section 2.94.040 of the Stockton Municipal Code is hereby amended to read as follows:
60 ATTACHMENT B
2 2.94.040 Membership.

A. The Commission shall be composed of 15 members, including one Youth Commissioner, appointed by the Mayor and with the approval of the City Council.

B. Each member of the Commission shall hold office for a term of four (4) years, except that:

1. The City Council may by written policy institute terms of less than four (4) years initially and whenever necessary in order to create staggered vacancies; and

2. Any member appointed to fill the vacancy occurring prior to the expiration of the term for which his or her predecessor was appointed, shall be appointed for the remainder of such term.

3. The Youth Commissioner shall hold office for a term of one (1) year, from July 1st through June 30th.

C. Any vacancy in the Commission shall not affect its power but shall be filled in the same manner in which the original appointment was made.

D. In addition to the Mayor, the City Manager and the City Attorney, such other persons as may be designated as ex officio members without vote by the Mayor with advice of the City Council shall be selected from any department, office, commission, board, employee or instrumentality of the City to aid, assist and advise the Arts Commission.

E. Each member of the Commission shall, at the time of application and continuously thereafter, be a resident of the City. Failure to reside within the City shall result in automatic forfeiture of the appointment. Written notice of any change of residence shall immediately be filed with the City Clerk. (Ord. 2015-12-08-1209 C.S. § 1)
F. The Youth Commission shall, at the time of application and continuously thereafter, be a resident of the City of Stockton and a Stockton middle school or high school student.

SECTION III. AMENDMENT OF CODE.

Title 2, Chapter 2.94, Section 2.94.060 of the Stockton Municipal Code is hereby amended to read as follows:

2.94.060 Organization.

61 ATTACHMENT B
3 The Commission shall organize and adopt the bylaws and administrative rules and procedures, consistent with this chapter, to accomplish its purposes. The committee Commission shall appoint such officers , or sub committees, or ad hoc committees, as shall be deemed necessary by the Commission. The Commission shall also appoint members to the Public Art Advisory standing subcommittee. (Ord. 2015-12-08-1209 C.S. § 1)

SECTION IV. AMENDMENT OF CODE.

Title 2, Chapter 2.94, Section 2.94.070 of the Stockton Municipal Code is hereby amended to read as follows:

2.94.070 Powers and duties.

The powers and duties of the Commission shall be as follows:

A. Establish a regular meeting schedule. In accordance with the Ralph M. Brown Act, all meetings shall be open and public, except as otherwise permitted by law. The Commission shall meet at the call of the chairperson or a majority of the Commission, but not less than once every three (3) months. A majority of the seated members of the Commission shall constitute a quorum. The affirmative votes of a majority of seated members of the Commission are required to take any action. The Commission shall keep an accurate record of its proceedings and actions; B. Hold deliberations of this Commission in public session; however, this shall not constitute the sessions as public hearings as a matter of right open to participation by members of the general public at large, except at the will of the majority of the Commission;
C. Administer any funds allocated by the City Council in the City’s approved annual operating budget for the purpose of offering grants or awards to artists or for other purposes as approved by the City Council in adoption of the Commission’s annual report and work plan. These allocated funds are separate and distinct from the City’s Public Art Fund;
D. Establish a Public Art Advisory Committee to serve as a permanent standing subcommittee of the Commission. The Public Art Advisory Committee Ddevelops and recommends to the Stockton Arts Commission and the City Council a proposed public art budget and expenditures from the Public Art Fund for each year; reviews and recommends for Commission and City Council the selection of and contracts with artists; and shall generally administer the Public Art Program;

E. The Commission shall develop , or cause to be developed, through the Public Art Advisory Committee the City Public Art Master Plan which shall establish the City’s policy and guidelines concerning the Public Art Program. The City Council shall review and concur on the Master Plan. The City Council shall review the respective projects 62 ATTACHMENT B
4 and the application of the requirements of Section 2.94.030, et seq., as proposed by the CommissionPublic Art Advisory Committee in the Annual Public Art Plan and shall approve or modify said Plan for implementation;

F. The Stockton Arts Commission shall have further responsibility for reviewing and recommending to the City Council, approval and/or acceptance of any artworks proposed to be donated to the City. The Public Art Advisory Committee Commission shall establish such policies and guidelines as may be appropriate to facilitate and encourage the donation of artworks of high quality to the City;

G. Recommend ways to maintain and increase the artistic and cultural resources of the City;

H. Solicit private, State and Federal funding available for the fine and performing arts;

I. Initiate, sponsor or conduct, alone or in cooperation with other public or private agencies, programs to further the development and public awareness of, and interest in the fine and performing arts;

J. Advise the City concerning the receipt of or purchase of and display of works of art to be placed on municipal property, except for museums or art galleries;

K. Improve access to the arts through various programs so that the arts are within the reach of persons of all cultural backgrounds and levels of income. The Commission shall especially be concerned for segments of the community in which the arts are lacking and needed;

L. The Commission recommendation shall be advisory only and not binding upon the City Council, all final determinations shall be made by the City Council and to perform such other related duties and functions as the City Council may from time to time direct, or otherwise appoint the Commission to administer or coordinate on behalf of the City. (Ord. 2015-12-08-1209 C.S. § 1)

SECTION V. AMENDMENT OF CODE.

Title 2, Chapter 2.94, Section 2.94.110 of the Stockton Municipal Code is hereby amended to read as follows:

2.94.110 Public art funding for City projects.

A. Appropriations. All appropriations for Public Art shall be made by the City Council, based on the recommendations of the Stockton Arts Commission and Public Art Advisory Committee as part of the annual art plan. Recommendations will coincide, whenever feasible with the annual City budget process. Appropriations may be used for design, selection, acquisition, commissioning, and display of artworks; for maintenance and for administration of the Public Art Program. 63 ATTACHMENT B
5 B. Public Art Fund. Monies appropriated pursuant to these sections shall be transferred to a special fund designated Public Art Fund, into which monies appropriated under Section 2.94.100(A) shall be deposited. Contributions to the Public Art Program in monetary form from private sources shall be deposited into the Public Art Fund.

Disbursements from the Public Art Fund shall be made in accordance with the annual public art plan. Expenditures are subject to approval by the City Manager and the City Council. (Ord. 2015-12-08-1209 C.S. § 1)

SECTION VI. AMENDMENT OF CODE.

Title 2, Chapter 2.94, Section 2.94.120 of the Stockton Municipal Code is hereby amended to read as follows:

2.94.120 Public Art Fund—Uses of funds.

A. Monies allocated hereunder may be used for the selection, design, acquisition, purchase, commissioning, placement, installation, exhibition, and/or display of artworks.

B. Public Art Maintenance Account. An amount equal to five (5) percent of the monies appropriated hereunder shall be deposited into a separate account within the Public Art Fund, to be known as the Public Art Maintenance Account, which shall be used in the maintenance and preservation of artworks in the public art collection.

C. Maintenance.

1. The annual public art plan shall require that any proposed work of art or art element generating operation or maintenance costs beyond the ordinary costs associated with typical project maintenance be accompanied with a detailed fiscal note and plan for funding such costs.

2. The Public Art Advisory Committee Commission shall be responsible for recommending surveys of the condition of the public art collection. Surveys shall be updated on an as-needed basis but not less than once every five (5) years, and include a report on the condition of each work, prioritized recommendations for the restoration or repair and maintenance of the artworks, estimated costs, and funding source(s). Such repair and maintenance shall comply with any contractual obligations which may have been entered into in the acquisition of those artworks. Funds from the Public Art Fund shall be reviewed annually for priority needs by the Public Art Advisory subcommittee and the Arts Commission, reviewed and approved through the annual budget process, and finally approved by the City Council.

D. Style. The Commission shall recommend and the City Council establish policies and guidelines which ensure over time that the City collection represents a broad range of artistic styles, tastes, and media, that it does not support exclusively artworks of any 64 ATTACHMENT B
6 particular school, style, taste, or medium, and that it takes into consideration affirmative action. (Ord. 2015-12-08-1209 C.S. § 1)

SECTION VII. SEVERABILITY

If any provision of this ordinance or the application thereof to any person or circumstance is held invalid, that invalidity shall not affect other provisions, or applications of the fact which can be given without the invalid provision or application, and to this end the provisions of this act are severable.

SECTION VIII. EFFECTIVE DATE.

This ordinance shall take effect and be in full force thirty (30) days after its passage.

ADOPTED: ___________________

EFFECTIVE: ___________________

_____________________________
KEVIN J. LINCOLN II
Mayor of the City of Stockton
ATTEST:

______________________________
ELIZA R. GARZA, CMC
City Clerk of the City of Stockton

65 1
ORDINANCE NO. ________________

AN ORDINANCE AMENDING TITLE 2, CHAPTER 2.94, SECTIONS 2.94.030, 2.94.040,

2.94.060, 2.94.070, 2.94.110, AND 2.94.120 OF THE STOCKTON MUNICIPAL CODE

TO ADD A YOUTH COMMISSIONER TO THE STOCKTON ARTS COMMISSION AND REMOVE STANDING COMMITTEE FROM THE STOCKTON ARTS COMMISSION.

BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF STOCKTON, AS FOLLOWS:

SECTION I. AMENDMENT OF CODE.

Title 2, Chapter 2.94, Section 2.94.030 of the Stockton Municipal Code is hereby amended to read as follows:

2.94.030 Definitions.

“Annual art plan” means a plan developed by the Stockton Arts Commission on an annual basis which describes the Commission’s goals for the year and includes any initiatives, programs, and public art projects along with funding requests for each. The plan shall be submitted as part of the City’s annual budget process and be approved by the City Council.

“Annual report” means a document submitted annually to the City Council setting forth the Commission’s completed activities for the prior year and setting forth goals for the coming year.

“Artist” means a practicing professional skilled in the design and/or creative production of aesthetic objects whose qualifications are demonstrated by recognition or stature within their field, and/or through reputation, recognition, and/or exhibitions.

“Public art collection” means all City-owned artworks.

“Public Art Fund” means a separate account which is established by the City to receive monies appropriated to the Public Art Program.

“Public Art Program” means, generally, the processes and approach to establishing art elements in public projects and public places as es tablished hereby and to projects funded through the Public Art Fund.

SECTION II. AMENDMENT OF CODE.

Title 2, Chapter 2.94, Section 2.94.040 of the Stockton Municipal Code is hereby amended to read as follows:

66 2

2.94.040 Membership.

A. The Commission shall be composed of 15 members, including one Youth Commissioner, appointed by the Mayor and City Council.

B. Each member of the Commission shall hold office for a term of four (4) years, except that:

1. The City Council may by written policy institute terms of less than four (4) years initially and whenever necessary in order to create staggered vacancies; and

2. Any member appointed to fill the vacancy occurring prior to the expiration of the term for which his or her predecessor was appointed, shall be appointed for the remainder of such term.

3. The Youth Commissioner shall hold office for a term of one (1) year, from July 1st through June 30th.

C. Any vacancy in the Commission shall not affect its power but shall be filled in the same manner in which the original appointment was made.

D. In addition to the Mayor, the City Manager and the City Attorney, such other persons as may be designated as ex officio members without vote by the Mayor with advice of the City Council shall be selected from any department, office, commission, board, employee or instrumentality of the City to aid, assist and advise the Arts Commission.

E. Each member of the Commission shall, at the time of application and continuously thereafter, be a resident of the City. Failure to reside within the City shall result in automatic forfeiture of the appointment. Written notice of any change of residence shall immediately be filed with the City Clerk.

F. The Youth Commission shall, at the time of application and continuously thereafter, be a resident of the City of Stockton and a Stockton middle school or high school student.

SECTION III. AMENDMENT OF CODE.

Title 2, Chapter 2.94, Section 2.94.060 of the Stockton Municipal Code is hereby amended to read as follows:

2.94.060 Organization.

The Commission shall organize and adopt the bylaws and administrative rules and procedures, consistent with this chapter, to accomplish its purposes. The Commission 67 3
shall appoint such officers , subcommittees, or ad hoc committees, as shall deemed by the Commission.

SECTION IV. AMENDMENT OF CODE.

Title 2, Chapter 2.94, Section 2.94.070 of the Stockton Municipal Code is hereby amended to read as follows:

2.94.070 Powers and duties.

The powers and duties of the Commission shall be as follows:

A. Establish a regular meeting schedule. In accordance with the Ralph M. Brown Act, all meetings shall be open and public, except as otherwise permitted by law. The Commission shall meet at the call of the chairperson or a majority of the Commission, but not less than once every three (3) months. A majority of the seated members of the Commission shall constitute a quorum. The affirmative votes of a majority of seated members of the Commission are required to take any action. The Commission shall keep an accurate record of its proceedings and actions; B. Hold deliberations of this Commission in public session; however, this shall not constitute the sessions as public hearings as a matter of right open to participation by members of the general public at large, except at the will of the majority of the Commission;
C. Administer any funds allocated by the City Council in the City’s approved annual operating budget for the purpose of offering grants or awards to artists or for other purposes as approved by the City Council in adoption of the Commission’s annual report and work plan. These allocated funds are separate and distinct from the City’s Public Art Fund;
D. Develop and recommend to the City Council a proposed public art budget and expenditures from the Public Art Fund for each year; review and recommend for City Council the selection of and contracts with artists; and shall generally administer the Public Art Program;

E. The Commission shall develop, or cause to be developed, the City Public Art Master Plan which shall establish the City’s policy and guidelines concerning the Public Art Program. The City Council shall review and concur on the Master Plan. The City Council shall review the respective projects and the application of the requirements of Section 2.94.030, et seq., as proposed by the Commission in the Annual Public Art Plan and shall approve or modify said Plan for implementation;

F. The Stockton Arts Commission shall have further responsibility for reviewing and recommending to the City Council, approval and/or acceptance of any artworks proposed to be donated to the City. The Commission shall establish such policies and 68 4
guidelines as may be appropriate to facilitate and encourage the donation of artworks of high quality to the City;

G. Recommend ways to maintain and increase the artistic and cultural resources of the City;

H. Solicit private, State and Federal funding available for the fine and performing arts;

I. Initiate, sponsor or conduct, alone or in cooperation with other public or private agencies, programs to further the development and public awareness of, and interest in the fine and performing arts;

J. Advise the City concerning the receipt of or purchase of and display of works of art to be placed on municipal property, except for museums or art galleries;

K. Improve access to the arts through various programs so that the arts are within the reach of persons of all cultural backgrounds and levels of income. The Commission shall especially be concerned for segments of the community in which the arts are lacking and needed;

L. The Commission recommendation shall be advisory only and not binding upon the City Council, all final determinations shall be made by the City Council and to perform such other related duties and functions as the City Council may from time to time direct, or otherwise appoint the Commission to administer or coordinate on behalf of the City.

SECTION V. AMENDMENT OF CODE.

Title 2, Chapter 2.94, Section 2.94.1 10 of the Stockton Municipal Code is hereby amended to read as follows:

2.94.110 Public art funding for City projects.

A. Appropriations. All appropriations for Public Art shall be made by the City Council, based on the recommendations of the Stockton Arts Commission as part of the annual art plan. Recommendations will coincide, whenever feasible with the annual City budget process. Appropriations may be used for design, selection, acquisition, commissioning, and display of artworks; for maintenance and for administration of the Public Art Program.

B. Public Art Fund. Monies appropriated pursuant to these sections shall be transferred to a special fund designated Public Art Fund, into which monies appropriated under Section 2.94.100(A) shall be deposited. Contributions to the Public Art Program in monetary form from private sources shall be deposited into the Public Art Fun d.

Disbursements from the Public Art Fund shall be made in accordance with the annual public art plan. Expenditures are subject to approval by the City Manager and the City Council.

69 5
SECTION VI. AMENDMENT OF CODE.

Title 2, Chapter 2.94, Section 2.94.120 of the Stockton Municipal Code is hereby amended to read as follows:

2.94.120 Public Art Fund—Uses of funds.

A. Monies allocated hereunder may be used for the selection, design, acquisition, purchase, commissioning, placement, installation, exhibition, and/or display of artworks.

A. Public Art Maintenance Account. An amount equal to five (5) percent of the monies appropriated hereunder shall be deposited into a separate account within the Public Art Fund, to be known as the Public Art Maintenance Account, which shall be used in the maintenance and preservation of artworks in the public art collection.

C. Maintenance.

1. The annual public art plan shall require that any proposed work of art or art element generating operation or maintenan ce costs beyond the ordinary costs associated with typical project maintenance be accompanied with a detailed fiscal note and plan for funding such costs.

2. The Commission shall be responsible for recommending surveys of the condition of the public art collection. Surveys shall be updated on an as-needed basis but not less than once every five (5) years, and include a report on the condition of each work, prioritized recommendations for the restoration or repair and maintenance of the artworks, estimated costs, and funding source(s). Such repair and maintenance shall comply with any contractual obligations which may have been entered into in the acquisition of those artworks. Funds from the Public Art Fund shall be reviewed annually for priority needs by the Commission, reviewed and approved through the annual budget process, and finally approved by the City Council.

D. Style. The Commission shall recommend and the City Council establish policies and guidelines which ensure over time that the City co llection represents a broad range of artistic styles, tastes, and media, that it does not support exclusively artworks of any particular school, style, taste, or medium, and that it takes into consideration affirmative action.

SECTION VII. SEVERABILITY

If any provision of this ordinance or the application thereof to any person or circumstance is held invalid, that invalidity shall not affect other provisions, or applications of the fact which can be given without the invalid provision or application, and to this end the provisions of this act are severable.

70 6
SECTION VIII. EFFECTIVE DATE.

This ordinance shall take effect and be in full force thirty (30) days after its passage.

ADOPTED: ___________________

EFFECTIVE: ___________________

_____________________________
KEVIN J. LINCOLN II
Mayor of the City of Stockton
ATTEST:

______________________________
ELIZA R. GARZA, CMC
City Clerk of the City of Stockton

71 City of Stockton
Legislation Text
File #: 23-0557, Version: 1

RESOLUTION APPOINTING ANUIT ALBAHAR TO THE STOCKTON ARTS COMMISSION

RECOMMENDATION
It is recommended that the City Council adopt a resolution to:

1. Appoint Anuit Albahar to the Stockton Arts Commission with term to commence immediately upon approval.

2. Authorize the City Manager to take whatever actions are appropriate and necessary to carry out the purpose and intent of this Resolution.

Summary
The Stockton Arts Commission (“SAC”) membership is defined by Stockton Municipal Code section

2.94.040 as a 15-member board appointed by the Mayor with approval of the City Council for a term of four years.

In 2022 the City Clerk’s Office conducted recruitment campaigns and accepted applications on a continuous basis for new members. A nominating committee of SAC commissioners conducted interviews on March 30, 2023, and a recommendation to fill one vacancy was planned for submission to the full Commission on June 5, 2023.

DISCUSSION
Background
The Stockton Arts Commission is comprised of a maximum of fifteen members. There are currently seven vacancies.

In accordance with Council Policy, Title 3 Chapter 3.02, the City Clerk initiated a recruitment process.

The vacancy announcement was posted on the City’s Boards and Commissions web page and print copies were posted on the City’s public posting boards. The City Clerk’s office also accepted applications continuously throughout the year. At the conclusion of the recruitment period, one application was received (Attachment A).

In accordance with City Council Policy Manual Chapter 3.02, City Council and Mayoral Appointments
to Committees, Boards, and Commissions, and Resolution 2018-02-27-1110, the City Clerk forwarded one application to the SAC for consideration. The one applicant responded to the interview invitation (Attachment A). Interviews were conducted on March 30, 2023, and a recommendation to fill one vacancy was planned for submission to the full Commission on June 5, 2023.

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Present Situation
Pursuant to Stockton Municipal Code section 2.94.040, and with the approval of appointment by the Mayor and City Council, the membership of the Stockton Arts Commission will be:

Name End of Term
Aisha Abercrombie December 31, 2026
Maurice Spiller December 31, 2026
Irie Woods December 31, 2026
Maximilian Cao December 31, 2025
Justin Grant December 31, 2025
Desiree Orque December 31, 2025
Evai Dellafosse December 31, 2026
Orlando Molina December 31, 2026
Anuit Albahar December 31, 2026

FINANCIAL SUMMARY
The Stockton Arts Commission receives no remunerations. There is no direct financial impact to the City by taking this action.

Attachment A - SAC Candidate Application (redacted)
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73 ATTACHMENT A
Application for appointment and background information for City of Stockton Boards, Commissions and Committees Submit Date: Mar 06, 2023
Profile
mail Address
Anuit Albahar
irs Name Las Name
S ree Address
Stockton
Cly Sae Posa( Code
Ethnicity
-
Gender
-
If selected "Other," please specify.

What district do you live in?*
� District 4
I declare under penalty of disqualification/termination that I have been a resident at the above address for years/months?
2years
Primary PhOne Al erna e Phone
The City of Stockton uses email as the preferred method of communication regarding your application. ls this acceptable to you?
r: Yes r l'h
mnlnvAr
Employer Address
Anuit Albahar
74 Are you currently serving oo a City of Stockton Board, Commission, or Committee? r- Yes r l'b
f yes, please list
Arts Commission
Which Boards would you like to apply for?
Arts Commission: Submitted
Question applies t, Arts Commission
NOTE: This Board requires membership with one of the following groups. If none, please remove board from your application. Outside of your profession, indicate what type of Arts you are active in? Select all that apply.*
Visual Arts, i nclu:ling (but not lim ited to) the Public or Environmental Arts, Graphic Arts, Design, Drawing, Painting, Printmaking, Sculpture, Ceramics, and Art History\, Question applies t, Arts Commission
Are you interested in or accomplished iin fund-raising? r- Yes r No
Question applies t> Port Commission
Do you reside within the Port District boundary or consistent with the City General Plan boundaries, plus a one-half mile strip on either side of the Stockton Ship Channel from the Port to Disappointment Slough?
r- Yes r No
Question applies t, Port Commission
If so, for how long?
2 years
Question applies t> multiple boards
NOTE: This Board requires membership with one of the following groups. f none, please remove board from your application. Are you knowledgeable, have experience in, or extensive background i1 any of the following areas? Select all that apply. * Active in community activities significant enough to confirm knowledge of issues and iniliduals wi1hi1 the community
Possess decision-makirg Abilities
Understanding of Ethnic/Gender Diversity
Understanding of the Stockton Public: Art Plan, processes and implications for the City of Stockton Willingness to tolerate/promote change
Anuit Albahar

ATTACHMENT A
75 I have been a resident of Stockton for at least 3 years. r- Yes r No
Interests & Experiences
Please tell us about yourself and why you want to serve.

Born and raised in stockton
Please state the reason you would like to oo a member of this board/commission.

A ready a member.

Have you served on an , advisory group before?
r- Yes r No
If yes, please explain.

SAC
Hem did you hear about the position?
Term expired. Need to re-apply.

City Council Policy 100-2 states that Commissioners are required to attend meetings on a regular basis. If appointed, will you be able to attend meetings regularly and devote the timenecessary to fulfill your duties as a member? r-Yes r No
O:> you or immediate family members have any relationship (professional, financial, other) that may present a potential conflict of interest for this advisory group? r Yes r- No
Background Information
UpkladaRerure
Anuit Albahar

ATTACHMENT A
76 Based on your best judgment, does this Commission make decisions that may affect any sources of income, interests in real property, or investments of you or your spouse? r Yes r, No
Voter Registration (Questions appear if required)
Submit Application
Enter Your Initials:

AA
Date Signed
2/3/2023
Anuit Albahar

ATTACHMENT A
77 Resolution No.

STOCKTON CITY COUNCIL

RESOLUTION APPOINTING ANUIT ALBAHAR TO THE STOCKTON ARTS

COMMISSION

The Stockton Arts Commission acts in an advisory capacity to the Stockton City Council in connection with the artistic and cultural development of the City; and

The Stockton Arts Commission promotes and encourages programs that further the development and public awareness of all the arts including public art, fine arts, and performing arts; and

The Stockton Arts Commission recommends the appointme nt of Anuit Albahar for one term to expire on December 31, 2026: and

In accordance with Stockton Municipal Code section 2.94.040.A, members of the Stockton Arts Commission are appointed by the Mayor with approval of the City Council; now, therefore,

BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF STOCKTON, AS FOLLOWS:

1. The City Council appoints Anuit Albahar to the Stockton Arts Commission.

2. Commissioner terms will commence immediately upon approval and expire on December 31, 2026.

3. The Mayor with approval of the City Council agrees with the current recommendations of the Stockton Arts Commission and the Community Services Department.

4. The City Manager is authorized to take whatever actions are necessary and appropriate to carry out the purpose and intent of this Resolution.

PASSED, APPROVED, and ADOPTED June 20, 2023 .

ATTEST:

KEVIN J. LINCOLN II
Mayor of the City of Stockton

ELIZA R. GARZA, CMC
City Clerk of the City of Stockton
78 City of Stockton
Legislation Text
File #: 23-0506, Version: 1

AUTHORIZE THE CITY MANAGER TO EXECUTE A COOPERATIVE AGREEMENT WITH

ASSURED TECHNOLOGY, TO INSTALL A NEW CLOSED-CIRCUIT TV AND ACCESS CONTROL

SYSTEM AT THE STOCKTON ARENA, BANNER ISLAND BALLPARK, AND BOB HOPE

THEATRE

RECOMMENDATION
It is recommended that the City Council by motion:

1. Approve a cooperative purchasing agreement between the City of Stockton and Assured Technology, through the California Multiple Award Schedule (CMAS), for the purchase and installation of a new Closed-Circuit TV (CCTV) and Access Control System for the following City owned Venues:
a. Stockton Arena
b. Banner Island Ballpark
c. Bob Hope Theatre

2. Approve findings which support and justify an exception to the competitive bidding process pursuant to SMC Section 3.68.070(A)(5), using a Cooperative purchasing agreement through other governmental jurisdictions or public agencies; and

3. Authorize the City Manager, or designee, to take necessary and appropriate actions to carry out the purpose and intent of this motion.

Summary
This action will authorize the purchase and installation of a new CCTV and Access Control System for the City-owned venues, replacing the current equipment that is inoperable and/or beyond its useful life. The new system will not only add new technology in cameras and monitoring equipment but will also install a key-card system throughout the back of house areas to allow more control over specific area access. The City has utilized a cooperative purchasing agreement through CMAS (Attachment A) to vet and select a contractor best suited to provide the installation and required equipment.

DISCUSSION
Background
Located in Downtown, the Stockton Arena, Banner Island Ballpark, and Bob Hope Theatre, are City- owned venues that host an array of events, welcome thousands of attendees, and are home to the City of Stockton Printed on 6/14/2023Page 1 of 2
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Stockton Kings (basketball), and Stockton Ports (baseball) teams. All of the venues are facilities that accommodate public and private mass gatherings and therefore require heightened security monitoring and adjustable area access.

The current CCTV and Access Control System at Stockton Arena and Banner Island Ballpark are original to the building(s). Existing systems in the facilities are beyond their useful life, and in some locations, inoperable or near critical failure, while the Theatre has never had a complete system. To avoid negative impacts due to system failure, City staff coordinated with ASM Global, the City’s contracted venue management operator, to acquire estimates for the needed system upgrades and replacements. Estimates were requested from companies that were contracted through the California Department of General Services, CMAS to take advantage of the state-wide procurement agreement.

Present Situation
This project is aligned with the Uplift Downtown Initiative’s goal to enhance and promote greater economic activity in the downtown core. Investment into the City-owned venues also supports the goals of the adopted Economic Development Strategic Action Plan. The new system will add an additional layer of security to all events hosted at the venues and improve the service to promoters and attendees.

Pursuant to Stockton Municipal Code Section 3.68.070(A)(5), contracts over $100,000 may be awarded without competitive bidding where Council approves findings that support and justify exceptions to the competitive bidding process. The following findings support and justify an exception:

1. The City is utilizing a Cooperative purchasing agreement authorized by City Council for the purchase of supplies or services through other governmental jurisdictions or public agencies in accordance with SMC section 3.68.070(A)(5).

2. The bid specifications used by CMAS have been assessed by the City’s Procurement Division as compatible with City standards.

3. The specifications for the replacement equipment available through the CMAS contract, meet the City’s requirements for equipment type.

4. Taking advantage of the leveraged procurement agreement negotiated by CMAS, will save the administrative expenses and time of City staff conducting separate and prolonged procurement.

FINANCIAL SUMMARY
There is no negative financial impact to the City’s General Fund (GF) due to the requested contract award. Funding for this project was previously appropriated by Council through Resolution No. 2021 -11-16-1501 (Attachment B) as one-time FY2021-22 funding for Council priority projects and allocated to Capital Project No. EED8601. All expenses related to the CCTV and Access Control project will be processed through Project No. EED8601.

Attachment A - CMAS Cooperative Purchasing Agreement
Attachment B - Resolution No. 2021-11-16-1501
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80 1
(Rev. 9.30.22)

COOPERATIVE/PIGGYBACK PURCHASE AGREEMENT
AGREEMENT SUMMARY:

1. Cooperative/Piggyback
Name:

State of California, the Department of General
Services

2. Contractor: Assured Technology, Inc.

3. Cooperative Agency
Agreement Name and
Agreement Number:

California Multiple Award Schedule, (CMAS)
Contract for Information Technology Goods and
Services, Agreement 3-23-01-1061, based on
PEPPM schedule 535133-190

4. Cooperative Agency Initial
Agreement Term:

Start Date: 01/24/2023
End Date: 12/31/2025

5. Cooperative Agency’s
Agreement-Options to
extend:

6. Cooperative Agency
Amended Term:

N/A

7. Cooperative Agency
Remaining Options to
Renew:

N/A

8. City of Stockton
Cooperative Purchase
Agreement Term:

Start Date: 06/20/2023 End Date: 12/31/2025

9. City of Stockton
Cooperative/ Piggyback
Purchase Agreement
Amount:

Not to Exceed $578,036, where $8,737.44 is off
contract, for the term of the agreement.

AGREEMENT
The Cit y o
f Stockton, a California municipal corporation on behalf of itself and its associated entities ("City"), and the above -nam ed Contractor (“ Contractor”), do her eby agree that City shall be granted the pricing, terms, and conditions under the above referenced California M
ultiple Award Schedule, (CMAS) Contract for Information Technology Goods and Services, Agreement 3-23-01-1061, based on PEPPM Schedule 532122-190 (“COOP”) as such may be amended from time to time.

The COOP
and associated documents referenced in the agreement are incorporated herein
as Exhibit A to this City Cooperative/Piggyback Purchase Agreement (“Agreement”).

Up to two (2) one (1) year extensions.
.

ATTACHMENT A
81 2
(Rev. 9.30.22)
Contractor shall grant such pricing, terms, and conditions to City for all procurements of goods
and services, whether taking place on a City purchase order, purchasing card (credit
card), or other purchasing modality, whether via telephone, via the Contractor website, or via direct purchase at a Contractor retail location.

1. Agreement Term: The Term of this Agreement shall remain in effect from date of the signing of
this Agreement through December 31, 2025, unless terminated earlier by the City. The term of the agreement also includes Ordering Procedures, Section 2, Service and Delivery after CMAS Expir ation is based on the ten (10) year license that will be granted to the
City, for the use of the cameras.

2. Insurance
and Hold Harmless: In addition to the pricing, terms and conditions stated in the COOP and the associated documents i ncorporated herein as Exhibit A, Contractor shall, at Contractor’s sole cost and expense and for the full term of the Agreement
or any extension thereof, obtain and maintain at least all the insurance requirements l
isted in attached Exhibit B.

To the fullest extent permitted by law, Contractor shall hold harmless, defend and indemnify City of Stockton and its officers, officials, employees and volunteers from and against any and all liability, loss, damage, expense, costs (including without limitation costs and fees of litigation) of every nature arising out of or in connection with Contractor’s performance of work hereunder or its failure to comply with any of its obligations contained in the agreement, except such loss or damage which was caused by the sole negligence or willful misconduct of the City of Stockton. This obligation is independent of, and shall not in any way be limited by, the minimum Insurance obligations contained in this agreement. These obligations shall survive the completion or termination of this agreement.

3. Compensation: City and Contractor do hereby enter into this Agreement for the installation of a new
CCTV and Access Control System available in the above-named COOP and associated documents incorporated herein as Exhibit A and referenced in the attached quote Exhibit C.

In no way, shall payment to the Contractor during the term of this Agreement exceed $578,036, where $8,737.44 is off contract, for the purchase of a new CCTV
and Access Control System. Any person signing this Agreement on behalf of City or Contractor does warrants that he or she has full authority to do so.

4. Governing Law
. California law shall govern any legal action pursuant to this Agreement with venue for all claims in the Superior Court of the County of San Joaquin, Stockton Branch or, where applicable, in the Federal District Court of California, Eastern District, Sacramento Division.

5. Applicable Law
. Deliverables must conform with all applicable federal, state, and local laws.

Such conformity includes compliance with federal sanctions, and Contractor certifies that it has not and will not engage in prohibited transactions with sanctioned persons or en
tities.

ATTACHMENT A
82 6. Prevailing wage. Prevailing wage rates may be required for this project according to State and Federal Labor laws. Prevailing wage rates can be found by logging on to http://www.dir.ca.gov/dlsr/
DPreWageDetermination.htm.

Pursuant to Labor Code Section 1771.1(a): A Contractor or subcontractor shall not be
qualified to bid on, be listed in a bid proposal, subject to the requirements of Section 4104 of the Public Contract Code, or engage in the performance of any c
ontract for public work, as defined in this chapter, unless currently registered and qualified to
perform public work pursuant to Labor Code Section 1725.5. It is not a violation of this section for an unregistered Contractor to submit a bid that is authorized by
Section 7029.1 of the Business and Professions Code or by Section 10164
or 20103.5 of the Public Contract Code, provided the Contractor is registered to perform public work pursuant to Section 1725.5 at the time the c
ontract is awarded.

No contractor or subcontractor may be listed on a bid proposal for a public works project (submitted on or after March 1, 2015) unless registered with the Department of I
ndustrial Relations pursuant to Labor Code section 1725.5 [with limited exceptions from this requirement for bid purposes only under Labor Code section 1771.1(a)].

No contractor
or subcontractor may be awarded a contract for public work on a public
works project (awarded on or after April 1, 2015) unless registered with the Department of Industrial Relations pursuant to Labor Code Section 1725.5.

Department
of Industrial Relations- Contractor Registration information and web link: http://www.dir.ca.gov/Public-Works/PublicWorks.html In compliance with Senate Bill 854 and the California Labor Code, all Bidders shall include with
their Bid proof of registration from the Department of Industrial Relations (DIR)
that includes the contractor’s Legal Name, Registration Number, License Type/Number,
Registration Date and Expiration Date, for every contractor and subcontractor, regardles
s of tier.

This project is subject to compliance monitoring and enforcement by the Department of
Industrial Relations. Contractors must submit their certified payroll records directly to the Division of Labor Standards Enforcement Compliance Monitoring Unit, as well as the City of Stockton.
3 ATTACHMENT A
83 4
(Rev. 9.30.22)
This Agreement
may be amended only by a written amendment , consistent with the COOP, signed by Contractor and City.

CITY OF STOCKTON ASSURED TECHNOLOGY, INC.

By: ___________ _______________
Harry Black, City Manager Signature
Date:__________
__________
____________________________
Print name
ATTEST: Title: ________________________
_______________
_____________ [If Contractor is a corporation, signatures must Eliza R. Garza CMC, City Clerk comply with Corporations Code §313]

APPROVED AS T
O FORM:

By: __________________________
___________________________ Signature
Lori Asuncion, City Attorney
__________________________
Print name
Title:
_______________________

ATTACHMENT A
84 EXHIBIT A

STATEMENT OF WORK

ATTACHMENT A
85 ATTACHMENT A
86 ATTACHMENT A
87 ATTACHMENT A
88 ATTACHMENT A
89 ATTACHMENT A
90 ATTACHMENT A
91 ATTACHMENT A
92 ATTACHMENT A
93 ATTACHMENT A
94 ATTACHMENT A
95 ATTACHMENT A
96 ATTACHMENT A
97 ATTACHMENT A
98 ATTACHMENT A
99 ATTACHMENT A
100

ATTACHMENT A
101

ATTACHMENT A
102

ATTACHMENT A
103

Documentation for

PEPPM 2023 PRODUCT LINE BID – CALIFORNIA
# 535122

Contract Start Date January 1, 2023

Awarded by the
Kern County
Superintendent of Schools

ATTACHMENT A
104

ATTACHMENT A
105
Exhibit A
Kern County Superintendent of Schools
Contract Awards Related to Request for Bids #535122
PEPPM 2023 Product Line Bid - California
Product Line Description Awarded Vendor
3Doodler 3D pen that extrudes heated plastic to create 3D structures Tequipment, Inc.

Absolute Software Endpoint security and management solutions software for computers, laptops and devices Trafera, LLC
ActiveFloor Interactive learning games including hardware and software Tequipment, Inc.

Adobe Systems Multimedia, creativity and Internet application software Emergent 360 Adtran Networking and unified communications/VOIP solutions Unistar-Sparco Computers, Inc.

Advanced Network Devices IP paging, intercom, and mass notification systems App-Techs Corporation Aiphone Intercom and video phones App-Techs Corporation Alcatel-Lucent Communications and networking solutions Alcatel-Lucent Enterprise Allied Plastics Co. Educational and office furniture Allied Plastics Co., Inc.

Allied Telesis Networking products SYNNEX Corporation Alumni Educational Solutions Educational furniture Alumni Educational Solutions Amazon Web Services Cloud computing services DLT Solutions Anchor Audio Portable sound/microphone systems EHP Solutions AngelTrax Mobile digital video recording surveillance solutions (DVR and NVR), wireless solutions, driver behavior and fleet management AngelTrax APC Power protection products ePlus Technology, Inc.

App-Techs Corporation Network video and digital video recorders App-Techs Corporation Apptegy School marketing and communications software and mobile apps Apptegy, Inc.

Arecont Vision Video surveillance cameras and equipment App-Techs Corporation Arista Networks Networking products Connection
Atlas IED Audio solution products Global CTI
Audio Enhancement Audio amplification products Audio Enhancement Avaya Unified communications and collaboration Avaya, Inc.

Aver Information Services Inc Classroom presentation solutions, document cameras and PC2TV conversion Trafera, LLC
AVerMedia Classroom presentation solutions, including audio products EHP Solutions Avid Audio headsets, ear pieces, and accessories SupplyMaster, Inc.

Axiom Memory, storage, network hardware, flash and battery products SYNNEX Corporation Barracuda Network security, web security, application delivery, email security and storage SYNNEX Corporation
Belden Cabling products Global CTI
Belkin Networking, connectivity products and accessories En-Net Services, LLC BirdBrain Robotics products including Hummingbird robotics kit and Finch codable robot Tequipment, Inc.

Bl
ack Box Charging carts, collaboration solutions, digital signage, communications, and infrastructure solutions Unistar-Sparco Computers, Inc.

Blocksi Cloud content filtering and classroom management system BorderLAN, Inc.

Bloxels Video game builder utilizing board/blocks and software Tequipment, Inc.

Bosch Security Systems Security, safety and sound solutions App-Techs Corporation Boxlight Corporation Presentation systems Boxlight, Inc.

Bump Armor Protective cases Bump Armor
ByteSpeed Computers Hardware, software, related services and other branded products ByteSpeed, LLC Cables2Go Cables and connectors ePlus Technology, Inc.

Cambium Networks Wireless broadband solutions App-Techs Corporation Canon USA - Copiers Copiers, fax, multi-function printers, micrographic products and collaboration solutions Canon U.S.A., Inc.

Checkpoint Firewall and security products SYNNEX Corporation Chief Manufacturing Ceiling mounts and CoPilot classroom multimedia systems Tequipment, Inc.

Ciena Packet networking, optical transport and converged packet optical products SYNNEX Corporation
Cisco Networking, security and telecommunication products SYNNEX Corporation ClassLink Personal cloud desktop, student administration and curriculum management system ClassLink, LLC
Clear Touch Interactive Interactive panel and displays solutions Clear Touch Interactive Cloudflare Delivery network services, DDoS mitigation, internet security, and distributed domain name server services Cloudflare, Inc.

Commscope High performance data cables, CATV, MATV, and fiber optic cables CommScope Technologies, LLC Conen Mounts Height adjustable solutions for flat panel displays and interactive whiteboards Tequipment, Inc.
1 of 4

ATTACHMENT A
106
ContentKeeper Internet and network security products ContentKeeper Technologies, LLC Copernicus Educational Products Furniture, library book storage, mobile carts, easels and other classroom products Copernicus Educational Products
Cro
wdStrike Cybersecurity services including managed endpoint detection, advanced threat detection, and next-gen antivirus DLT Solutions CTL
Chromebooks, carts, accessories, licenses, imaging, consoles and tagging CTL Corporation
Custom Educational Furniture Technology furniture CEF Da-Lite Presentation products Unistar-Sparco Computers, Inc.

DMSI Fiber cable and connectors En-Net Services, LLC
Eaton Power distribution, protection, and infrastructure products En-Net Services, LLC EHP Solutions Interactive and commercial-grade displays, monitors, and mobile stands EHP Solutions
Epson America Printers, projectors, scanners and accessories Epson America, Inc.

Ergotron Mounting and mobility products for monitors, laptops, tablets, flat panels and TVs SYNNEX Corporation
FomCore Foam-core furniture and custom shapes FomCore Forest Scientific Corporation CNC routers, plasma cutters, mill and lathe machines and control upgrades Forest Scientific Corporation
Fork Farms Hydroponics growing unit Tequipment, Inc.

Formlabs 3D printers Tequipment, Inc.

Fortinet Cyber security solutions and services Fortinet, Inc.

FrontRow Classroom amplification systems FrontRow
Fujitsu - Scanners/Drives Scanners, hard drives and optical drives Fujitsu PFU America, Inc Full Spectrum Laser Laser cutter and printer Tequipment, Inc.

Gaggle Student safety management Gaggle.Net, Inc.

Genetec Access control products and video surveillance hardware and software Genetec, Inc.

GoGuardian Chromebook management and content filtering solutions Go Guardian Greene Manufacturing School, computer and laboratory furniture Greene Manufacturing, Inc.

Hann Manufacturing Computer and lab furniture Hann
Hatch Computer learning center solutions and other early childhood education products HATCH, Inc.

Hewl
ett Packard Enterprise (HPE) Servers, storage systems, backup, networking, security, telecommunication products, software and related services SYNNEX Corporation HP - Computers Desktops, laptops, tablets, software and related services SYNNEX Corporation HP - Printers/Imaging Printers, scanners, multifunction devices, and supplies SYNNEX Corporation i3-Technologies Interactive flat panel displays, collaborative video conferencing products, educational technology i3-Technologies
iBenzer Protective cases and accessories iBenzer, Inc. iBoss Web Filters Internet content security appliances iBoss ICON Cloud Solutions Hosted voice and notification services Icon Cloud Solutions, LLC Interior Concepts Computer and classroom furniture Interior Concepts Intrado Notification, collaboration, and life safety communication solutions Global CTI
IPEVO Document cameras and interactive whiteboards IPEVO, Inc. i-PRO Americas Sensing solutions for security surveillance, public safety, and industrial/medical vision i-PRO Americas Inc.

Ironwood Manufacturing Technology furniture Ironwood
Isonas Panel-less IP access control App-Techs Corporation IXL Learning Educational software IXL Learning, Inc.

JACS Solutions Mobility solutions including end devices, WiFi and LTE connectivity, and charging carts SYNNEX Corporation
JLab Headphones Tequipment, Inc.

Kai's Clan Codable robot Tequipment, Inc.

Kajeet Off campus education broadband solution for home Kajeet KIBO Coding blocks robot and accessories Tequipment, Inc.

KinectIQ Wireless presentation systems EHP Solutions
KnowBe4 Integrated security awareness training and simulated phishing platform Global CTI
Kodak Digital cameras, scanners and digitizing equipment SYNNEX Corporation Korg Electronic musical instruments and recording equipment Korg USA, Inc.

KUBO Coding fundamentals robot using puzzle pieces Tequipment, Inc.

Labdisc Data logging device Tequipment, Inc.

LastPass Password management and security solutions Unistar-Sparco Computers, Inc.

Lenovo US End-user devices including hardware, software, peripherals and related services Trafera, LLC
2 of 4

ATTACHMENT A
107
LENS Automated lockdown and emergency notification system Eastern DataComm, LLC LG Electronics TV/audio/video products, monitors, projectors, notebooks and optical media products SYNNEX Corporation
Lightspeed Technologies Classroom amplification systems Lightspeed Technologies, Inc.

Linewize Networking security and internet filtering products BorderLAN, Inc. lockncharge Charging and transport solutions for storing laptop, tablet, Chromebook, iPad and other mobile devices Trafera, LLC Logitech Computer, tablet and video collaboration products and accessories Trafera, LLC LTS Security Video recorders, IP cameras and accessories App-Techs Corporation Lu Interactive Audio video and motion detection system designed for active environments Tequipment, Inc.

MAD-learn Mobile App Development software program for education Tequipment, Inc.

MakerBot Desktop 3D printer Tequipment, Inc.

Makey Makey Invention kit to learn coding and physical computing Tequipment, Inc.

Matter and Form 3D scanning devices Tequipment, Inc.

Mayku Desktop vacuum former that makes 3D molds in seconds Tequipment, Inc.

Merge Labs Augmented and virtual reality products Tequipment, Inc.

MiEN Company Technology and classroom furniture MiEN Company Mifram Security Modular vehicle barrier systems and other branded products Advanced Security Technologies, LLC Milestone Systems IP video management software App-Techs Corporation Mitel Video conferencing, telephony and communication equipment Mitel Business Systems, Inc.

Mobotix Video surveillance cameras App-Techs Corporation Modular Robotics Robot blocks Tequipment, Inc.

National Public Seating Educational, science, performing arts, office, cafeteria and presentation furniture National Public Seating
Newline Interactive Interactive flat panel displays and video conferencing products Newline Interactive Nile Global Wired and wireless networking as-a-service Nile Global Inc.

NOVA Solutions Lecterns, computer and classroom furniture, collaboration and multi-purpose tables Nova Solutions, Inc.

Nu
tKase Accessories USA Protective cases and accessories for Chromebooks, iPads, and mobile devices NutKase Accessories USA LLC
Oklahoma Sound Technology, presentation and storage furniture National Public Seating OneScreen Collaboration and video conferencing solutions Clary Icon Oracle America Relational database management systems, servers and storage products Mythics, Inc.

Osm
o AR tablet education games that merges physical play pieces with the digital real-time feedback Tequipment, Inc.

Owl Labs Smart video conferencing cameras SYNNEX Corporation Ozobot Coding blocks robot and accessories Tequipment, Inc.

Palo Alto Next-generation firewalls and security software SYNNEX Corporation Panasonic Corporation Hardware, software, related services and other branded products SYNNEX Corporation Paragon Furniture Technology furniture Paragon Furniture, Inc.

Pathway Innovation and Technologies Cameras, transparent writing glass, software and accessories including eGlass and Hovercam Pathway Innovations Inc.

PCS Revenue Control Systems Food service management solutions PCS Revenue Control Systems, Inc.

Piper Electronic kit to complete physical computing projects Tequipment, Inc. pi-top Build-it-yourself laptops, computers, software, and management systems Tequipment, Inc.

Poly Headsets, telephony devices and video conferencing equipment SYNNEX Corporation PowerSchool Student information systems, learning management and administrative software PowerSchool Group LLC
ProLift Motorized height adjustable cart, wall mount, and floor stands EHP Solutions Promethean Interactive whiteboards and classroom technology solutions Promethean, Inc.

QOMO HiteVision Document cameras, monitors, digital signage, interactive boards, media carts, etc. Qomo HiteVision, LLC
Radio Engineering Industries Mobile video surveillance solution Radio Engineering Industries, Inc.

Rauland-Borg Communication systems Rauland-Borg Corporation Red Hat Open source enterprise operating system software Emergent 360 Regout Balance Systems Non-motorized (BalanceBox) and motorized (eBox) height adjustable cart and wall mounts EHP Solutions
RingCentral Cloud communications and collaboration solutions RingCentral Robotis Educational robots and kits Tequipment, Inc.

Roland DGA Scanners, thermal and wide format printers, vinyl cutters, small desktop CNC mills and engravers Roland DGA
Ruckus Wireless Wireless networking products SYNNEX Corporation Rugged Protection Student series iPad and tablet cases, chromebook cases and MFI wired keyboards Rugged Protection, LLC
3 of 4

ATTACHMENT A
108
SAFARI Montage Multimedia distribution systems SAFARI Montage SAM Labs Programmed building blocks to create and code robots Tequipment, Inc.

Samsara Wireless sensor solutions for energy monitoring and fleet management Emergent 360
Sa
msung - Consumer Products Consumer grade digital cameras, camcorders, TVs, Blu-Ray/DVD players, theatre/audio, wearable technology and LED lighting Unistar-Sparco Computers, Inc.

Sa
msung - Enterprise Products Displays, large format displays, notebooks, tablets, chromebooks, memory and storage Unistar-Sparco Computers, Inc.

Samsung - Telecommunications Business telephones and data networking Unistar-Sparco Computers, Inc.

Sapling Company Wireless and synchronized clock systems Sapling Company Sharp - Copiers Copiers, fax, multi-function printers and micrographic products Sharp Electronics Corporation Sharp - Professional Displays/Monitors Professional displays/monitors Sharp Electronics Corporation Shuttle Furniture Computer and classroom furniture ShuttleSystem Sielox Crisis lockdown alert status systems Sielox, LLC SMART Technologies Interactive whiteboards and classroom technology solutions SMART Technologies Corporation SMARTdesks Classroom and technology furniture Smartdesks SoftBank Robotics Workplace health and safety robotic solutions Canon U.S.A., Inc.

SonicWall Network security products Sonicwall, Inc.

Squishy Circuits Basic electrical circuits kits using conductive and insulating play dough Tequipment, Inc.

STEM Fuse STEM curricula Tequipment, Inc.

Strategic Solutions Records management software and services SC Strategic Solutions TabletKiosk Windows and Linux compatible tablet PCs TabletKiosk Targus Group International Computer carrying cases and accessories Unistar-Sparco Computers, Inc.

TCP Software Automated time and attendance, and scheduling/substitute management including TimeClock Plus Data Management, Inc.

TeachLogic Wireless microphones and audio systems TeachLogic LLC Telecor Intercom, public address, and master clock systems Telecor, Inc.

Teq iBlocks STEAM project based curriculum Tequipment, Inc.

Teq Online PD Online professional development for technology instruction integration Tequipment, Inc.

ThreeSixty Intercom, paging, mass notification and IP telephone systems ThreeSixty, Inc.

TouchView Interactive Interactive displays TouchView Interactive Tripp Lite Power protection products En-Net Services, LLC Ubiquiti Wireless network solutions Connection
UBTECH Enterprise service robots, disinfection robotic systems and STEM skill-building robots Tequipment, Inc.

Ultimaker 3D printers Tequipment, Inc.

Universal Laser Systems Laser engraver/cutters Forest Scientific Corporation Universal Seating Food court furniture and digital signage Universal Seating Company UZBL Protective cases and accessories for portable devices Trafera, LLC Veative Virtual Reality headset with educational interactive lesson content Tequipment, Inc.

Verkada Cloud-based video surveillance systems Verkada, Inc.

Vertiv Power, thermal, and infrastructure management solutions ePlus Technology, Inc.

Vicon Industries Video surveillance equipment and software Vicon Industries, Inc.

ViewSonic Displays, projectors, handhelds and presentation accessories ViewSonic Corporation Visioneer Scanners Unistar-Sparco Computers, Inc.

Visiplex Wireless voice paging and data messaging systems for emergency communication, mass notification, public address and intercom Eastern DataComm, LLC Vivacity Tech Mobile device deployment and storage solutions Vivacity Tech PBC Vivitek Projectors, interactive displays, wireless presentation products, and digital signage EHP Solutions
WatchGuard Web security products SYNNEX Corporation
WilsonPro Cell phone signal boosters and accessories Eastern DataComm, LLC Wisconsin Bench Computer and classroom furniture WB Manufacturing LLC WiseJet Wireless extenders EHP Solutions
Wonder Workshop K-8 educational robots and coding Tequipment, Inc.

Xerox Corporation - Copiers Copiers, multifunction devices, production systems and software Xerox Corporation Yealink Video and voice conferencing systems and hardware Global CTI Zebra Technologies Barcode printing and RTLS technology products En-Net Services, LLC Zonar Systems Electronic fleet management hardware and software Zonar Systems, Inc. zSpace Desktop virtual reality software products zSpace, Inc.

Zultys Phone systems and unified communication products Zultys, inc. 4 of 4

ATTACHMENT A
109

ATTACHMENT A
110
Product Line Bidder
Single
or
Multiple
(responses
to bid)
Discount Markup
On TimeTs and Cs Compiance (Q86)Reference Forms (Q54)Subtotal for Vendor Bid as WholeProof-of-Supply (Q71-72)Correct Products (Pricing Template - BR)Quote Sheet Formulas and Price Basis (Pricing template)Correct Formulas on Bid Response Tab(Pricing template)Comparable SKU Numbers (BR)Awarded Vendor (attachment)Returned Goods Policy (attachment)Warranty Statement (attachment)State Selection Form or
Answer to Q76
Ancillary Services Form
or
Answer to Q73
Subtotal for Product LinePermanent place of business (Q4-Q7, 45)Financially solvent, not in Bankruptcy (Q46)No overdue tax liabilities (Q47)No overdue PEPPM transaction fees (Q48)Non-Collusion (Q49)Not under suspension of debarment (Q50)Adequate sales network (Q51)Positive references (Q54) or past experiencePrevious sales in the public sector (Q55,56,60,62)Can provide customer support (Q57,Q58)Complied with PEPPM contracts (Q59)Subtotal for Vendor ResponsibilityTotal Overall Bid ResponsiveProduct Line ResponsiveResponsible as to BidderQualifies for Price EvaluationAWARD Recommendation Verkada Verkada, Inc. S 12% 1 1 1 3 1 1 1 1 1 1 1 1 1 1 10 1 1 1 1 1 1 1 1 1 1 1 11 24 TRUE TRUE TRUE TRUE Yes

ATTACHMENT A
111

ATTACHMENT A
112

ATTACHMENT A
113

Kern County Superintendent of Schools
Request for Bids
PEPPM 2023 Product Line Bid – California
Electronic Bid # 535122
Bid Due Date: Tuesday, October 18, 2022, 3:00 p.m. Pacific Time

Kern County Superintendent of Schools, in cooperation with the PEPPM cooperative purchasing program, seeks sealed,
competitive bids for technology products, including equipment, software, services, supplies, and other items.

I Introduction and Overview
I.1 Bid Title
PEPPM 2023 Product Line Bid – California
I.2 Electronic Bid Number
The applicable electronic bid form is numbered 535122.

I.3 Organization of Terms and Conditions
I Introduction and Overview
II Bid Document Definitions and Interpretations
III Legal Authority and Eligible Buying Agencies
IV PEPPM Fees
V Bidder Qualifications
VI Product Specifications
VII Ordering Procedures and Requirements
VIII Pricing Specifications
IX Bid Procedures and Directions
X Bid Evaluation and Award Process
XI Uniform Guidance Requirements
XII Post-Award Requirements
XIII Other Terms and Conditions

ATTACHMENT A
114

I.4 Bid Scope
This is a Request for Bids (RFB) for lines of branded technology products and services. Such branded lines of technology products and services are referred to herein, each as a “Product” and collectively, as “Products.” Products include, but are not limited to, computers, tablets, networking and telecommunications equipment, cloud services, printers, peripherals, cameras, software, televisions, storage products, student management systems, audio -visual equipment, furniture, copiers, multifunction copy/print devices, and other electronics, services, items, goods, equipmen t, and supplies, whether tangible or intangible, for which bids are requested.

I.5 Bidding Agency
Kern County Superintendent of Schools (KCSOS)
1300 17th Street
Bakersfield, California 93301
I.6 The Cooperative
PEPPM has a proven record of serving school districts and other public agencies across all the United States with cooperative purchasing Contracts competitively bid under the high standards expected for public-sector procurement. The PEPPM cooperative purchasing program helps schools and other pub
lic agencie s drive down the cost of acquisition and derive the best value for their technology investments.

I.7 Bid Due Date
All bids must be received electronically by 3:00 p.m. PT, Tuesday, October 18, 2022 PT, (the “Bid Due Date”).

The Agency may extend the Bid Due Da te and time at any time in advance of the Bid Due Date by issuing an addendum to this Request for Bids.

I.8 Bid Opening
Bids will be opened and publicly read at 3 p.m. PT, Tuesday, October 18, 2022, (the “Bid Opening Date”), at 630 San Ramon Valley Boulevard, Suite 210, Danville, California 94526.

I.9 Prebid Meetings
No Prebid meeting will be held for this RFB.

I.10 Other Important Dates
• Consideration of Exceptions Due Date September 2, 2022 • Submission of Questions Due Date September 30, 2022
• Tentative Agency Contract Signing November 18, 2022
• Contract Start Date January 1, 2023

I.11 Advertising and Legal Notice of the Request for Bids The Agency’s minimum legal advertising requirements are met with legal notices in the Bakersfield Californian, a newspaper of general circulation in the county where the Agency is located.

ATTACHMENT A
115

I.12 Contract Term
The initial term of the awarded Contracts shall begin on January 1, 2023, following the signing of an award resolution by KCSOS. The Contract shall continue through December 31, 2025, unless terminated, canceled, or extended.

II Bid Document Definitions and Interpretations (Return to Top) Captions
The captions appearing at the beginning of each section or subsection of the Contract Documents are for reference and convenience only and shall be disregarded whenever an interpretation of the Contract Documents is required.

Capitalized Terms
Unless the context otherwise requires, capitalized terms used but not otherwise defined in the Contract Documents shall have the respective meanings specified in these Terms and Conditions.

Use of Pronouns
For the Contract Documents, one gender shall include any other gender, and the singular shall include the plural, and all rights granted and received shall be joint and several, as the case may be.

Provisions Required by Law
Each provision of law and any clause required by any federal, state, or local law to be in the Contract or Purchase Order will be read and enforced as though it were included herein. If through mistake or otherwise any such provision is not inserted or is not correctly inserted, then upon application of either party the Contract or Purchase Order will immediately be physically amended to make such insert ion or correction.

Christian Doctrine
Any clause required by rule or regulation not included in this Request for Bids, the Contract or Purchase Order will be read as if in this Request for Bids, the Contract, or Purchase Order, as applicable, whether or not physically included.

Non-Exclusive Contract
Any Contract resulting from this solicitation shall be awarded with the understanding and agreement that it is for the sole convenience of the Agency and Eligible Entities. Agency and Eligible Entities reserve the right to obtain equal or similar Products from another source.

Definition of “Agency”
“Agency” shall mean the Kern County Superintendent of Schools (KCSOS).

Definition of “Agreement”
“Agreement” shall mean the Awarded Vendor Agreement between Agency and the Awarded Vendor.

Definition of “Authorized Reseller”
The term "Authorized Reseller" shall mean a firm, company, individual, business, partnership, or joint venture, such as dealers, distributors, value -added resellers, etc. that have been designated b y the Awarded Vendor to help fulfill the Contract for one or more specific PEPPM awards held by the Awarded Vendor. Authorized Reseller responsibilities may include, but are not limited to, marketing activities, providing ancillary services, sales, receipt of orders, fulfillment of orders, invoicing, receipt of payment

ATTACHMENT A
116

and paying PEPPM Transaction Fees as determined by the Awarded Vendor. By way of clarification, an Authorized Reseller as used in this RFB is intended to mean such entity, as described above, who is named in writing as an Authorized Reseller by the Awarded Vendor for purposes of assisting such Awarded Vendor with sales under the contact between the Agency and the Awarded Vendor, and is not intended to mean an Awarded Vendor’s authorized resel ler that was awarded the product line and accepts orders for itself as an Awarded Vendor resulting from bidding this RFB.

Definition of “Awarded Vendor”
"Awarded Vendor" is the Bidder declared by the Agency to be the lowest, responsive, responsible Bidder to whom the KCSOS has awarded a Contract.

Definition of “Bidder”
“Bidder” is any firm, company, individual, business, partnership, joint venture, or other entity which has completed and submitted a response to this Request for Bids.

Definition of “Clarification”
“Clarification” means communication with a Bidder for the sole purpose of eliminating minor irregularities, informalities, or apparent clerical mistakes in the Bidder’s bid. It is achieved by explanation or substantiation, either in respons e to an inquiry by the Agency or as initiated by the Bidder. Clarification does not allow the Bidder to revise or modify its bid, except if correction of the minor irregularity, informality, or apparent clerical mistakes results in a revision.

Definitions of “Contract Documents,” “Contract,” and “Purchase Order” Contract Documents Between Agency and Awarded Vendor . As between the Agency and Awarded Vendor, the "Contract Documents" consist of this Request for Bids, its Terms and Conditions, any applicable state-specific terms and conditions, all information incorporated into the electronic bid form by Agency or Bidder, the Bidder's responses to Questions, the Bidder's PEPPM Bid Quote Sheet, the Bidder's pricing spreadsheet, the Bidder's PEPPM State Selection Form, the Bidder's Ancillary Services Form, the Agreement, all other attachments and exhibits to the Request for Bids, all addenda to the Request for Bids issued before the Bid Opening Date, and all subsequent written amendments to the Agreement (e.g., adding state -specific terms and conditions ). The Contract Documents form the "Contract" between Agency and the Awarded Vendor during the Contract term and any authorized extensions.

Contract Documents Between Awarded Vendor and Eligible Entity . As be tween an Eligible Entity and
an Awarded Vendor, the “Contract Documents” shall include, in addition to the Contract Documents listed above between Agency and Awarded Vendor, the Purchase Order or any PEPPM Mini -Bid Contract issued by the Eligible Entity ( including any order-level terms specific to options selected by the Eligible Entity, but excluding any pre -printed terms and conditions on such P urchase Order in conflict with the Contract Documents), the Awarded Vendor’s performance, payment and maintenance bonds (if applicable), lease financing documents (if applicable), maintenance service agreement (if applicable), end-user license agreements (if applicable), third party service order forms (if applicable), service level agreements (if applicable), Cloud computing and storage services order form and service level agreement with the Cloud services provider (if applicable), the Prevailing Wage rate determination (if applicable), and any state -specific terms and conditions that are part of the Contract Docu ments, and all subsequent written amendments to the Purchase Order or PEPPM Mini-Bid Contract, and shall form the “Contract” between the LEA and Awarded Vendor, which Contract is referred to in these Terms and Conditions as the “Purchase Order.” “Purchase Order” may also include a mutually agreeable

ATTACHMENT A
117

Statement of Work executed between the Eligible Entity and an Awarded Vendor , and a mutually agreeable data protection agreement.

Definition of “Cooperative Procurement Code”
The term "Cooperative Procurement Co de" shall have the meaning outlined in Section III.2 of these Terms and Conditions.

Definition of “Effective Date”
The “Effective Date” of a Purchase Order is the date on which the Awarded Vendor receives a Purchase Order that has been executed by the Eligible Entity and has all approvals required by the Eligible Entity.

For the avoidance of doubt, the Effective Date of a Purchase Order for purchases under the E -rate Program is the date on which the Awarded Vendor receives a PEPPM Mini-Bid Contract that has been executed by the Eligible Entity and has all approvals required by the Eligible Entity.

Definition of “Eligible Entity”
“Eligible Entity” means an LEA or other Eligible Organizations that qualify to be buyers. Several sections provide a detailed descr iption of “Eligible Entities” starting here . Notwithstanding the foregoing, “Eligible Entity” means any “public procurement unit” or “external procurement activity” as those terms are defined in the Cooperative Procurement Code.

Definition of “eCommerce Consultant”
The "eCommerce Consultant" is a private purchasing services company engaged by Agency to help facilitate the bid process and provide a multitude of services including bid document development, consulting, eC ommerce, marketing, order management, and accounting services. The eCommerce Consultant may change during the Contract.

Definition of “eCommerce Merchant Agreement”
The term "eCommerce Merchant Agreement" is the document attached to the electronic bid form governing the eCommerce Consultant's services and software integral to the PEPPM program.

Definition of “Epylon”
“Epylon” shall mean Epylon Corporation, the current eCommerce Consultant with an address of 630 San Ramon Valley Boulevard, Suite 210, Danville, California, 94526.

Definition of “LEA”
The term “Local Educational Agency” or “LEA” is defined elsewhere in the Terms and Conditions.

Definition of “Non-Responsive”
Any bid that does not reasonably and substantially conform to the mandatory or essential terms, conditions or specified requirements for this solicitation shall be considered non -responsive. Bids determined to be non-responsive will not be considered for an award.

Definition of “PEPPM”
PEPPM (pronounced PEP-um) is a national cooperative purchasing program specializing in technology- related Products administered by the Central Susquehanna Intermediate Unit.

Definition of “Product” or “Products”
The terms “Product” and “Products,” means any items, goods, supplies, equipment, or ancillary services thereto.

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Definition of “Responsible Bidder”
A responsible Bidder is a vendor that has submitted a responsive bid and one that possesses the capability and qualifications to perform the Contract requirements fully, plus the financial strength, integrity, and reliability to assure good -faith performance. Agency must determine a Bidder to be responsible before awarding a Contract to Bidder.

Definition of “Responsive Bid”
A responsive bid is a bid, which reasonably and substantially conforms to the mandatory or essential terms, conditions, and specified requirements for this solicitation. Bids must be responsive to receive award consideration.

Definition of “Punchout”
The term “Punchout” is a website technology term for the functionality that allows one website to pass credentials to another site, enabling a user to access uniquely scoped or protected content and interactive functions.

Definition of “Transaction Fee”
"Transaction Fee" is that fee paid, in USD, by an Awarded Vendor on the net dollar amount of invoiced Products and ancillary services sold under a PEPPM contract. “Transaction Fee” is more fully defined elsewhere in the Terms and Conditions.

Definition of “Sales Reconciliation Report”
"Sales Reconciliation Report" is that report submitted twice yearly by Awarded Vendors and Awarded Resellers to the Agency on the official PEPPM template provided.

III Legal Authority and Eligible Buying Agencies (Return to Top) III.1 Agency Role in California
Agency is an elected county superintendent of schools, an office established by Article IX of the California Constitution. The current office holder is Mary C. Barlow, empowered with authority to award and enter into contracts.

III.2 Authority for Bidding and Contracting
The PEPPM cooperative purchasing program was originally established in 1982. It is a n ational cooperative purchasing program administered by the Central Susquehanna Intermediate Unit, a political subdivision of Pennsylvania, which is cooperating with the Kern County Superintendent of Schools.

Exercising powers under Article IX of the California Constitution, the Kern County Superintendent of Schools solicits bids for LEAs under Constitutional authority and California statutes.

Agency also claims bidding authority for bidding and use of its cooperative purchasing Contracts under the California Public Contract Code, the Education Code, and the Government Code.

All public agencies are authorized by law to purchase off a contract awarded by an agency that has itself gone to bid, including all K-12 schools districts, community college districts, special districts and JPAs serving education, pursuant to California Public Contract Code Sections 20118 and 20652. Using these statutes, the Kern County Superintendent of Schools hereby declares its intent and authorization to make all Contracts awarded under this RFB "piggybackable" by other LEAs.

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The Agency waives any right to receive payment from other Eligible Entities agencies making purchases off the awarded Contracts and those agencies will make payment directly to the vendors. A partial, but not exclusive, list of eligible LEAs is listed as a PDF attachment to the Terms and Conditions Section and is titled "Partial List of Eligible Agencies.”
Any legislative changes to Public Contract Codes 20118 and 20652 during the term of the contract(s) with Award Vendor(s) shall apply to the Contract(s) immediately when such changes become law.

The Kern County Superintendent of Schools also claims its authority to bid under the Education Code for the creation of a Standard School Supply and Equipment List.

KCSOS declares that items under Contract as a result of this Request for Bids will qualify as items to be included within its Standard School Supply and Equipment List. Because many county offices of education have banded together to create programs for the purpose of collectively creating a Standard School Supply & Equipment List and cooperative Contracts, the items solicited and awarded through this bid may also constitute a portion of an official Standard School Supply and Equipment List for other participating county offices of education and county superintendents of schools. Purchases by other county offices of education and school districts may be made, not only in accordance with Public Contracts Code 20118 and 20652, but also in accordance with Education Code 38110 and 38112 dealing with cooperatives and Standard School Supplies & Equipment.

Further Agency extends its Agreement for other public agencies to use Contracts arising out of this RFB under the authority of Government Code 6502 by mutually exercising powers common to the parties, whether in California or outside the state.

III.3 Local Educational Agencies (LEAs)
“Local Educational Agencies (LEAs)” means the following tax -exempt, nonprofit institutions and organizations (each an “LEA” and collectively “LEAs”):
• Public school districts
• Area Vocational Technical Schools (AVTS units)
• Intermediate units, county offices of education, and county superintendents • BOCES
• State-approved private schools
• Public libraries
• Nonpublic schools
• State-approved charter schools
• Community colleges
• Other organizations defined as “LEAs” under applicable law.

At a minimum, an Awarded Vendor must serve LEAs in California. At its option as designated on its State Selection Form, an Awarded Vendor may choose to serve LEAs in other states.

III.4 Other Eligible Organizations
“Eligible Organizations” means the following institutions and organizations whether residing inside or outside of the state of California, subject to the Awarded Vendor’s approval:
• Tax-exempt, nonprofit colleges, and universities, other than community colleges which fall within the definition of LEAs

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• Other tax-exempt, nonprofit educational institutions or organizations which do not fall within the definition of LEAs
• County gov ernments, local municipalities, county/municipal/public authorities, and special districts
• State agencies
• Other political subdivisions
• Other tax-exempt, nonprofit public health institutions or organizations • Other tax-exempt, nonprofit fire companies, rescue companies, or ambulance companies • Other entities, including a council of governments or an area government, which expends public funds for the procurement of supplies, services, or construction • Other organizations, institutions or entities permitted under applicable law to avail themselves of Agency Contracts

III.5 Eligible Entities
The LEAs and other Eligible Organizations are sometimes collectively referred to in this Request for Bids as, each an “Eligible Entity” and collectively the “Eligible Entities.” Unless approved by the Awarded Vendor, Eligible Entities do not include U.S. federal governmental entities.

III.6 Extending Contract Awards to Other States
Although this Request for Bids is tailored for all LEAs in California, the Agency intends to allow for “piggybacking” on Agency Contracts by Eligible Entities residing inside or outside of the state of California that wish to participate.

The Agency intends that the Contracts awarded under this Request for Bids be made available for use by LEAs and other Eligible Organizations in all 50 U.S. states, Washington D.C., and Puerto Rico, to the fullest extent permitted by law, as the same may be amended from time to time.

In addition to California LEAs, the Agency will make its contracts available to other Eligible Entities residing inside or outside of the state of California if they meet the following conditions:
• The Agency Contract meets the Eligible Entity's bidding requirements and is judged to be a good value
• The Awarded Vendor is willing to extend its PEPPM bid prices and Contract terms to the Eligible Entity
• The order is processed according to PEPPM ordering procedures

III.7 Extending Contract Award to LEAs in States Other Than California Bidders must define their intention whether to sell to LEAs in states other than California, and whether to sell to other Eligible Organizations in California and other states by following PEPPM's bid submission instructions. and submission of a State Selection Form. Awarded Vendors may a mend their intentions from time to time during the term of their Contract by mutual agreement with the Agency.

III.8 Intergovernmental Agreement
By purchasing Products under a PEPPM-affiliated Contract or entering into a Purchase Order with an Awarded Vendor under a PEPPM-affiliated Contract, the Eligible Entity attests, affirms, acknowledges and agrees that:

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• It is an organization eligible to participate in the PEPPM -affiliated Contract under the Cooperative Procurement Code
• It is bound by all the Terms and Conditions of the Contract applicable to the Eligible Entity including, without limitation, these Terms and Conditions, state-specific terms and conditions, and applicable law
• Under no circumstances shall any other Eligible Entity or the Agency be responsible for payments on account of said Eligible Entity’s purchases, it being the intent that any such purchases shall constitute the separate agreement of Eligible Entity with the particul ar Awarded Vendor
• Agency may disclose non-specific aggregate Eligible Entity information (such as the geographic spread of participants and number and types of participants) to third parties

The Agency and Eligible Entity intend that Eligible Entity's purchase of Products under a Contract or entry into a Purchase Order with an Awarded Vendor, hereby bound by these Terms and Conditions, constitutes the necessary intergovernmental agreement between the Eligible Entity and Agency to satisfy the Cooperative Pr ocurement Code requirements and any requirements for an interlocal agreement under the applicable procurement code of the Eligible Entity’s state. No additional agreement is required. If, however, the Eligible Entity requests that the Agency execute a sepa rate interlocal agreement, Agency will do so, provided such interlocal agreement is in form and substance acceptable to Agency.

III.9 Compliance with Laws and Specific Terms and Conditions Awarded Vendor shall comply with any and all laws, whether local, state, federal or otherwise, applicable to it in its provision of any of the Products or ancillary services to be provided under the Contract. It shall be the Awarded Vendor’s responsibility to determine the applicability and requirements of any such laws and abide by them.

Eligible Entities in states outside of California may have further requirements or conditions listed with this bid that clarifies the ability of LEAs or other Eligible Entities to piggyback other state or cooperative procurement contracts like those under the PEPPM program. State-specific terms and conditions may be listed in an addendum to this Request for Bids and pertain only to the individual states listed. The inclusion or absence of any state -specific terms and conditions should not be con strued as tacit approval by the state for purchases through the PEPPM cooperative purchasing program. Adherence to the state -specific terms and conditions listed only applies if a Bidder has agreed to extend its PEPPM-affiliated Contract to LEAs (and other Eligible Entities, if applicable) in that specific state. Only Contracts held by Awarded Vendors willing to adhere to these additional state -specific terms and conditions will be listed as available in that state.

Other state-specific terms and conditions may be determined after the bid is awarded and added to the Contract via an amendment to the Awarded Vendor Agreement agreed upon by the Awarded Vendor and Agency, or added to an LEA’s or other Eligible Entity’s Purchase Order via an amendment agreed upon by the Awarded Vendor and LEA. The Awarded Vendor’s Agreement to either of the foregoing amendments shall not be unreasonably withheld, conditioned, or delayed.

III.10 eCommerce Merchant Agreement
Awarded Vendors and Authorized Resellers will be bound to the eCommerce Merchant Agreement, which is attached to the electronic bid form.

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III.11 Agency’s Interest in a Contract Resulting from This RFB

NOTWITHSTANDING ITS OWN CONSUMPTION, TO THE EXTENT AGENCY ISSUES THIS REQUEST FOR BIDS AND ANY RESULTING CONTRACTS FOR THE USE OF ELIGIBLE ENTITIES, AGENCY’S INTERESTS

AND LIABILITY FOR SAID USE OF THE CONTRACTS BY ELIGIBLE ENTITIES SHALL BE LIMITED TO THE

COMPETITIVE BIDDING PROCESS PERFORMED RELATING TO SAID CONTRACT AND SHALL NOT

EXTEND TO THE PRODUCTS, ANCILLARY SERVICES, OR WARRANTIES OF THE AWARDED VENDOR OR

THE INTENDED OR UNINTENDED EFFECTS OF THE PRODUCTS AND ANCILLARY SERVICES PROCURED FROM IT.

IN NO EVENT SHALL AGENCY BE LIABLE TO ANY AWARDED VENDOR OR ELIGIBLE ENTITY FOR ANY

SPECIAL, INDIRECT, INCIDENTAL, EXEMPLARY, RELIANCE, CONSEQUENTIAL, OR PUNITIVE DAMAGES,

LOST PROFITS, OR OTHER BUSINESS INTERRUPTION DAMAGES WHETHER BASED ON BREACH OF CONTRACT, TORT (INCLUDING NEGLIGENCE), PRODUCT LIABILITY OR OTHERWISE. ANY LIABILITY OF

AGENCY SHALL BE LIMITED TO DIRECT, ACTUAL DAMAGES ONLY, AND IN NO EVENT SHALL THE

AGENCY BE LIABLE FOR DAMAGES IN EXCESS OF THE TRANSACTION FEE IT RECEIVES ON THE APPLICABLE TRANSACTION. ELIGIBLE ENTITIES AND AWARDED VENDORS ACKNOWLEDGE THAT THE

LIMITATIONS SET FORTH ABOVE ARE FUNDAMENTAL ELEMENTS OF THE PEPPM PROGRAM AND

RESULTING AGREEMENTS AND THE AGENCY WOULD NOT PROVIDE THE PEPPM PROGRAM OR ENTER INTO THE AGREEMENTS ABSENT SUCH LIMITATIONS.

III.12 New Laws; Change to Existing Laws
If a new law, rule, or regulation comes into effect; or there is a ch ange in any existing law, rule or regulation; or there is a change in the interpretation of any applicable law, rule or regulation by any court of law or regulatory body; and such event makes performance by Agency or an Eligible Entity under the Contract or a Purchase Order illegal, impracticable, or impossible, the Agency or such Eligible Entity may at its option suspend performance under, or terminate, the Contract or such Purchase Order without further obligation to the Awarded Vendor or Authorized Reseller other than to pay any amounts owed through the date of suspension or termination for Products ordered and received, if any.

III.13 Applicability of E-Rate Provisions
Provisions related to E-rate in these Terms and Conditions are not applicable to an Awarded Vendor if no E-rate Form 470 has been filed in conjunction with the publication of the RFB.

For this RFB, no form 470 has been filed.

IV PEPPM Fees (Return to Top)
PEPPM Bid Evaluation Fee
There are no bid evaluation fees for a Bidder submitting a bid to KCSOS in California.

PEPPM Bid Award Fee
Successful Bidders will NOT be charged any award or set -up fees in connection with an award in California.

No Bid Registration Fees
No registration fee will be collected for a Bidder to register or read Terms and Conditions.

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Transaction Fees
Awarded Vendors shall be required to pay a cooperative program Transaction Fee for all purchases by Eligible Entities made through the awarded Contracts. The Transaction Fee shal l be 1.75 percent of "Net Sales," which means gross sales of Products and ancillary services less returns and canceled orders within thirty (30) days, shipping, and other taxes (excluding taxes based on net income). This applies to all orders, regardless of the method used to submit the order, the quantity of Products or ancillary services, or the dollar amount of the order.

The eCommerce Consultant will collect the cooperative program Transaction Fee on behalf of Agency.

The Transaction Fee described here is the same as the agreed-upon eCommerce Consultant Marketing Fee contemplated by Section 7 of the Epylon eCommerce Merchant Agreement. The Agency Transaction Fee replaces and supersedes any requirement for higher fees in the eCommerce Merchant Agreement.

Authorized Resellers will be responsible for paying the Transaction Fee for Authorized Resellers' transactions unless the Awarded Vendor notifies the eCommerce Consultant of its intent to pay the Transaction Fee on behalf of their Authorized Resellers. Awarded Vendors shall remain responsible for paying the Transaction Fee on behalf of its Authorized Resellers if the Authorized Reseller fails to remit the Transaction Fee. By way of clarification, the immediately preceding sentence does not apply to an Awarded Vendor’s Authorized Reseller where such Authorized Reseller is itself an Awarded Vendor for a different Product Line and is selling to the Eligible Entity in its capacity as an Awarded Vendor for such different Product Line.

Transaction Fees publicly disclosed here will not be charged to or paid by the Eligible Entities themselves but are an Awarded Vendor's cost of doing business. Awarded Vendor or its Authorized Resellers shall not include any additional itemized amount corresponding to the Transaction Fees in the bid responses, awarded Contract prices, or any other quote including E -rate mini-bids to Eligible Entities.

Failure to pay Transaction Fees within thirty (30) days of an order may result in suspension or termination of the Awarded Vendor’s Contract whether sales were processed directly by the Awarded Vendor or its Authorized Resellers. The Awarded Vendor shall reimburse the Agency for any costs and expenses (including, without limitation, attorney’s fees) arising out of any claims or actions taken on behalf of the Agency to collect any unpaid Transaction Fees.

Fees Related to CMAS Conversions
Any vendor using this Contract to obtain a separate California Multiple Awards Schedule (CMAS) contract from the state of California is responsible for paying both the CMAS fee and the 1.75 percent Transaction Fee described in this section for all orders submitted through the CMAS program. Any vendor using this Contract, and its copyright ed language to obtain a separate CMAS contract must provide a quarterly report to PEPPM detailing the dollar amount of its sales under the CMAS contract.

Based on the repor t, the CMAS contractor will be billed the PEPPM Transaction Fee. Public records from CMAS may be used to verify amounts listed in the contractor’s report.

Fees in Nonconforming Jurisdictions
Notwithstanding Section IV.4, no Transaction Fee is authorized to be collected or charged to Awarded Vendors for sales within any jurisdiction where prohibited by law or local-government policy. Instead, the cost of Products, services, licenses, and goods sold under this Contract in such jurisdictions

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shall be the same as for LEAs in all other counties of California. However, any Eligible Entity using this Contract where Section IV.4 fees are not permitted shall be required to pay directly an additional 1.75 percent fee for use of the Contract, imposed by KCSOS on the authority of Public Contract Code 20118, which allows KCSOS to charge reasonable costs to the public corporation or Eligible Entity for furnishing the services incidental to the purchase of items under Contact.

Maintenance
In many instances, an Eligibl e Entity issuing Purchase Order under a PEPPM -affiliated Contract may consent to a related ongoing service, a maintenance plan, data storage, subscription, renewal, change order, voice plan, upgrade, or similar conveyance. In practice these purchases may b e covered by a blanket Purchase Order and billed in installments. Sometimes they are covered by agreements that cross fiscal years.

These ongoing serial procurements, change orders, and subscriptions are subject to bid protection when the Eligible Agency establishes an original nexus to the PEPPM-affiliated Contract. As such, these purchases are also subject to the Transaction Fee described in Section IV.4.

Cost of Bid Preparation
The Agency will not reimburse Bidders for the cost of developing, presenting, or responding to this Request for Bids.

V Bidder Qualifications (Return to Top)
V.1 Declaration of Non-Collusion
Assuring that prices are arrived at independently and without collusion is so crucial that this RFB requires the Bidder to affirmatively and truthfully answer "Yes" to the non -collusion question in the Question Section of the electronic bid form. Otherwise, the bid may not be submitted to Agency.

By submitting a bid, the person named on the electronic bid form declares that he or she has authority to offer the prices bid and agrees that:
• The price(s) and amount of the bid have been arrived at independently and without consultation, communication, or agreement with any other contractor, Bidder, or potential Bidder • Neither the prices nor the amount of the bid, and neither the approximate prices nor the approximate amount of the bid have been disclosed to any other firm or person who is a Bidder or potential Bidder, and they will not be disclosed before bid opening • No attempt has been made or will be made to induce any firm or person to refrain from bidding on this Contract, or to submit a bid higher than this bid, or to submit any intentionally high or noncompetitive bid or other form of a complementary bid • The bid of Bidder is made in good faith and not pursuant to any agreement or discussion with, or inducement from, any firm or person to submit a complementary or other noncompetitive bid • Neither Bidder nor its affiliates, subsidiaries, officers, directors, or employees are under investigation by any governmental agency and have not in the last three years been convicted or found liable for any act prohibited by state or federal law in any jurisdiction, involving conspiracy or collusion regarding bidding on any public contract except as set forth in a separate attachment to your bid; and
• The representations above are material and important. They will be relied on by the Agency in awarding the Contract(s) for which this bid is submitted. Any misstatement is and shall be

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treated as fraudulent concealment from the Agency of the true facts relating to the submission of bids for this Contract

V.2 Suspension or Debarment
By submitting a bid, the Bidder certifies for itself and all its Authorized Resellers that, within the past five years, they have not been under suspension, debarment or otherwise lawfully precluded from participating in any public-sector procurement activity.

At any time after Bidder’s submission and during the term of any Contracts or Purchase Orders, Agency and Eligible Entities may inquire whether any Bidder, Awarded Vendor or Authorized Reseller has been suspended or debarred or is otherwise lawfully p recluded from participating in any public -sector procurement activity.

V.3 Overdue Tax Liabilities and Other Delinquent Obligations The Bidder certifies by submission of its bid that it does not know of any overdue tax liabilities of Bidder or its intended Authorized Resellers or other delinquent obligations owed to Agency, including, but not limited to, unpaid Transaction Fees or other fees from previous contracts.

V.4 Notice of Any Changes
An Awarded Vendor must inform the Agency if it changes its add ress or become delinquent in taxes.

Also, the Awarded Vendor must tell the Agency if another government agency suspends one of its Contracts or if another government agency debars it. All notices must be in writing and received by the Agency within fifteen (15) days of the change, delinquency, suspension, or debarment.

V.5 Americans With Disabilities Act
Pursuant to federal regulations promulgated under the authority of The Americans With Disabilities Act, 28 CFR § 35.101 et seq., the Awarded Vendor agrees that it shall not cause any individual with a disability to be excluded from participation in the Contract or Purchase Order or from activities provided for under the Contract or Purchase Order on the basis of the disability. As a condition of accepting any Contract or Purchase Order, the Awarded Vendor agrees to comply with the “General Prohibitions Against Discrimination,” 28 CFR § 35.130, and all other regulations promulgated under Title II of The Americans with Disabilities Act which are applicable to all benefits, services, programs, and activities relevant to the Contract or Purchase Order.

V.6 Covenant Against Contingent Fees
The Awarded Vendor warrants that, no person or selling agency has been employed or retained to solicit or secure the Contract or Purcha se Order upon an agreement or understanding for a commission, percentage, brokerage, or contingent fee, except bona fide employees or bona fide Authorized Resellers maintained by the Awarded Vendor for the purpose of securing business. For breach or violation of this warranty, the Agency or Eligible Entity, as applicable, shall have the right to terminate the Contract or Purchase Order without liability or in its discretion to deduct from the Contract price or consideration, or otherwise recover the amount of such commission, percentage, brokerage, or contingent fee.

V.7 Sole Source of Responsibility
Agency desires a “Sole Source of Responsibility” vendor, meaning the Awarded Vendor will take sole responsibility for the sale and delivery of the broadest scope of Products across the largest possible geographic area, and to the largest possible cross-section of Eligible Entities.

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Having status as the “Sole Source of Responsibility,” an Awarded Vendor may establish relationships with Authorized Resellers to execute its contractual duties. The Awarded Vendor assumes all responsibility for the Products and ancillary services provided by its Authorized Reseller, the actions of its Authorized Reseller, and Transaction Fees of any Authorized Reseller. By way of clarificat ion, the immediately preceding sentence does not apply to an Awarded Vendor’s Authorized Reseller where such Authorized Reseller is itself an Awarded Vendor for a different Product Line and is selling to the Eligible Entity as an Awarded Vendor for such different Product Line.

V.8 Authorization for Resellers
Vendors who are awarded a Contract for a specific Product Line may establish Authorized Resellers to offer and sell Products to Eligible Entities. Awarded Vendors must ensure that their Authorized Resellers sell any contracted Product and any ancillary services at or below bid pricing. They must also ensure that their resellers obey all Terms and Conditions of the Contract and corresponding Purchase Order and pay all Transaction Fees unless the Awarded Vendor has agreed to pay the Transaction Fees on the Authorized Reseller’s behalf.

If an Authorized Reseller does not pay its Transaction Fees, the Awarded Vendor becomes responsible for the payment of the Transaction Fees. The Awarded Vendor is responsible for maintaining the Ordering Instructions, which include the list of Authorized Resellers. Additional Authorized Resellers may be added after bid award subject to prior approval of the Agency.

Agency reserves the right to reject an Awarded Vendor’s proposed Authorized Reseller based on such Authorized Reseller’s unsatisfactory performance or behavior under past PEPPM contracts, including, without limitation, unsatisfactory performance, or behavior of an Authorized Reseller in connection with the PEPPM Mini -Bid process under past PEPPM contracts. Agency further reserves the right to require an Awarded Vendor to remove an Authorized Reseller from the Contract in its entirety, or from participating in the PEPPM Mini -Bid process, due to such Authorized Reseller’s u nsatisfactory performance or behavior under the PEPPM -affiliated Contract , including, without limitation, unsatisfactory performance, or behavior of an Authorized Reseller in connection with any applicable PEPPM Mini-Bid process.

V.9 Bidder Profiling
By answering the questions in the Question Section, Bidders must give satisfactory evidence they:
• Maintain permanent places of business
• Have a legal source of supply to furnish the Products offered • Will provide customer sales support and service to all LEAs and applicable Eligible Organizations • Have relationships with LEAs for verification of customer satisfaction • Can demonstrate an active sales network
• Will serve all selected LEAs and applicable Eligible Organizations

V.10 Historically Underutilized Businesses (HUBs)
To identify businesses owned by minorities, women or disabled veterans, the Agency requests any minority-owned, women-owned, or disabled-veteran-owned business to identify their status as such so that it can be made known to interested Eligible Entities. A HUB may identify itself in its answer to a HUB question in the Question Section.

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V.11 Insurance
The Awarded Vendor must purchase and maintain insurance for the protection of claims for damages because of bodily injury, including personal injury, sickness, disease, or death of any of the Awarded Vendor's employees for claims of damages due to injury or destruction of tangible property, including loss of use resulting therefrom, and from claims arising out of the performance of the Contract or Purchase Order or caused by negligent acts for which the Awarded Vendor is legally liable. The Awarded Vendor must maintain throughout the term of the Contract and throughout the term of any outstanding Purchase Orders with an Eligible Entity at least $1,000,00 0 per occurrence commercial general liability insurance (basic and umbrella coverage) covering the services and work contemplated by the Contract and Purchase Order.

The Awarded Vendor must purchase and maintain throughout the term of the Contract and throughout the term of any outstanding Purchase Orders with an Eligible Entity automobile and truck liability coverage with a minimum combined single limit liability of $300,000.

If requested by the Agency or an Eligible Entity, the Awarded Vendor must provide a certificate of insurance evidencing all required coverage with a provision that notice of cancellation shall be provided in accordance with policy provisions. All required insurance must be written on an occurrence basis and maintained with a carrier au thorized to conduct business in the state of California or the state in which the Eligible Entity resides, having a minimum “excellent” rating of A.M. Best A -. The Agency and Eligible Entity shall be included as additional insureds as respects insurable li abilities assumed by Awarded Vendor under this Agreement on the Commercial General Liability policy of insurance required to be carried by Awarded Vendor under the Contract or Purchase Order.

The Awarded Vendor is required throughout the term of the Contract and through the term of any outstanding Purchase Orders to comply with the California worker’s compensation laws and any such worker compensation acts from other states in which the Eligible Entity resides, and any supplements or amendments thereto, which may have been or may hereafter be passed.

V.12 Definitions Related to Vendor Integrity
For purposes of the sections numbered V.12 through V.23 only, the following definitions shall apply:
• “Confidential information” means information that is not public knowle dge, or available to the public on request, disclosure of which would give an unfair, unethical, or illegal advantage to another desiring to contract with the Agency or Eligible Entity • “Consent” means written permission signed by a duly authorized officer or employee of the Agency or Eligible Entity, provided that where the material facts have been disclosed, in writing, by prequalification, bid, proposal, or contractual terms, the Agency or Eligible Entity shall be deemed to have consented by virtue of execution of the Contract or Purchase Order, as applicable • “Vendor” means Awarded Vendor or Authorized Reseller who may be an individual or entity that has entered into the Contract or a Purchase Order with an Eligible Entity, including directors, officers, partners, managers, key employees, and owners of more than a five percent interest • “Financial interest” means: a) ownership of more than a five percent interest in any business; or b) holding a position as an officer, director, trustee, partner, employee, o r the like, or holding any position of management
• “Gratuity” means any payment of more than nominal monetary value in the form of cash, travel, entertainment, gifts, meals, lodging, loans, subscriptions, advances, deposits of money, services, employment, or contracts of any kind

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V.13 Highest Standards of Integrity
The vendor shall maintain the highest standards of integrity in the performance of the Contract and Purchase Order and shall take no action in violation of state or federal laws, regulations, or other requirements that govern contracting with the Agency or any Eligible Entity.

V.14 Confidential Information
The vendor shall not disclose to others any confidential information gained by virtue of the Contract or Purchase Order.

V.15 Pecuniary Benefit
The vendor shall not, in connection with the Contract or any other agreement with the Agency or the Purchase Order or any other agreement with any Eligible Entity directly, or indirectly, offer, confer, or agree to confer any pecuniary benefit on anyone as consideration for the decision, opinion, recommendation, vote, other exercise of discretion, or violation of a known legal duty by any officer or employee of the Agency or any Eligible Entity.

V.16 Giving Gratuities
The vendor shall not, in connection with the Contract, Purchase Order or any other agreement with the Agency or Eligible Entity, directly or indirectly, offer, give, or agree or promise to give to anyone any gratuity for the benefit of or at the direction or request of any officer or employee of the Agency or Eligible Entity.

V.17 Accepting Gratuities
Except with the consent of the Agency or Eligible Entity, neither the vendor nor anyone in privity with the vendor shall accept or agree to accept from, or give or agree to give to, any person, any gratuity from any person in connection with the performance of work under the Contract or a Purchase Order except as provided therein.

V.18 Supplemental Financial Interests
Except with the consent of the Agency or Eligible Entity, the vendor shall not have a financial interest in any other vendor, designated partner, or supplier providing services, labor, or material on a project under a Contract or Purchase Order.

V.19 Notification of Violations
The vendor, upon being informed that any violation of these provisions (i.e., Sections V.12 through V.23) has occurred or may occur, shall immediately notify the Agency or Eligible Entity in writing.

V.20 Certification of Non-Violation
The vendor, by execution of the Agreement and Purchase Order and by the submission of any bills or invoices for payment pursuant thereto, certifies, and represents that it has not violated any of these provisions (i.e., Sections V.12 through V.23).

V.21 Cooperation with Authorities
The vendor, upon the inquiry or request of the appropriate state official of any participating state or any of that official’s agents or representatives, shall make promptly available for inspection, any information of any type or form relevant to the vendor’s integrity or responsibility, as those terms are defined by relevant statutes, or regulations. Such information may include, but shall not be limited to, the vendor’s business or financial records, documents or files of any type or form which must be disclosed pursuant to applicable law and refers to or concerns the Contract or Purchase Order. Such

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information shall be retained by the vendor for a period of three years beyond the termination of the Contract or Purchase Order unless a longer period is otherwise provided by law. For example, E-rate rules require E-rate applicants and service providers to maintain all E-rate related documents including but not limited to procurement, billing, and communications, for a period of ten years from the last date to receive service in a particular funding year.

V.22 Rights and Remedies in the Event of Violation
For violation of any of the above provisions (i.e., Sections V.12 through V.23), the Agency or Eligible Entity may terminate the Contract, Purchase Order and any other agreement with the vendor, claim damages equal to the v alue of anything received in breach of these provisions, claim damages for all expenses incurred in obtaining another vendor to complete performance hereunder, and debar and suspend the vendor from doing business with the Agency or Eligible Entity; provided that before any termination action under this Section, vendor shall be provided with written notice of the violation and thirty (30) days to cure the violation. These rights and remedies are cumulative, and the use or nonuse of any one shall not preclude the use of all or any other. These rights and remedies are in addition to those the Agency or Eligible Entity may have under law, statute, regulation, or otherwise.

V.23 Right of Vendor Employee Rejection
LEAs that are school districts, nonpublic schools, charter schools, or public technology schools reserve the right to reject any person they deem unfit to be permitted on school grounds and in proximity to students. Upon written notice from the Eligible Entity or Agency, the Awarded Vendor shall have su ch persons performing services pursuant to the Purchase Order removed from the site immediately. The Eligible Entity’s right to declare such person unfit shall not be limited to the required exclusion of such persons from federal and state laws legislated as child protective services.

V.24 Separation of Employer Responsibilities
It is understood that the Awarded Vendor, in performing services and providing Products pursuant to the Contract or any Purchase Order, is acting as an independent contractor and is not an agent, servant, partner, nor employee of Agency or Eligible Entity. The Awarded Vendor has control over the services and Products it delivers under the Contract and any Purchase Order and shall be solely responsible for its own federal, state , and local income taxes, salary, social security payments, and any other payments incurred by the Awarded Vendor in the performance of the Contract and any Purchase Order, and adhere to all necessary legal requirements governing employment. None of the benefits provided by Agency or Eligible Entities to their own employees, including but not limited to retirement benefits, workers’ compensation insurance, disability insurance, medical insurance, and unemployment insurance, are available from them to the Awarded Vendor and/or any of the Awarded Vendor’s agents, servants, and employees. The Awarded Vendor has no authority under the Contract or any Purchase Order to assume or create any such obligation or responsibility, expressed or implied, on the behalf or in the name of Agency or Eligible Entities, or to bind Agency or Eligible Entities.

V.25 Nondiscrimination and Sexual Harassment
During the term of the Contract and any Purchase Order, the Awarded Vendor agrees as follows:
• In the hiring of any employees for the manufacture of supplies, performance of work, or any other activity required under the Contract or any Purchase Order or any subcontract, the Awarded Vendor, designated partner or any person acting on behalf of the Awarded Vendor or designated partner shall not by reason of gender, race, creed, or color discriminate against any citizen of the

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state within which the award is made who is qualified and available to perform the work to which the employment relates.
• Neither the Awarded Vendor nor any designated partner nor any person on their behalf shall in any manner discriminate against or intimidate any employee involved in the manufacture of supplies, the performance of work or any other activity required under the Contract or any Purchase Order on account of gender, race, creed, or color.
• The Awarded Vendor and any designated partners shall establish and maintain a written sexual harassment policy and shall inform their employees of the policy. The policy must contain a notice that sexual harassment will not be tolerated and employees who practice it will be disciplined. • The Awarded Vendor shall not discriminate by reason of gender, race, creed, or color against any designated partner or supplier qualified to perform the work to which the Contract relates. • If the Agency or Eligible Entity have reason to suspect that the Awarded Vendor violated the Nondiscrimination/Sexual Harassment Clause, the Agency or Eligible Entity may request, and the Awarded Vendor shall promptly provide, applicable information to pr ove compliance. If the Awarded Vendor or any designated partner does not possess documents or records reflecting the information requested, it shall furnish such information on reporting forms supplied by the Agency, Eligible Entity, or appropriate departments of state government. • The Awarded Vendor shall include the provisions of this Nondiscrimination/Sexual Harassment Clause in every subcontract that specifically is undertaken to support the Contract or any Purchase Order so that such provisions will be binding upon each designated partner. • The Agency or Eligible Entity may cancel or terminate the Contract or Purchase Order and all money due or to become due under the Purchase Order may be forfeited for violating the Terms and Conditions of this Nondiscri mination/Sexual Harassment Clause. In addition, the Agency may proceed with debarment or suspension of that Awarded Vendor from the PEPPM program.

V.26 References and Past Performance
A Bidder must be responsible and capable of executing all duties to be covered under the Contract.

To evaluate a Bidder’s qualifications to perform under the Contract, Agency will require the submission of three signed reference forms. Also, the Agency will consider performance of Bidder on previously awarded PEPPM contracts and Bidder’s past conformance to bid terms and conditions , including submission of pricing updates, submission of Ordering Instructions, customer service, and payment of fees.

VI Product Specifications (Return to Top)
Product Lines Sought
This RFB seeks formula pricing for technology and technology -related Products provided by reliable national manufacturers and service providers in specific brand -name categories. Each brand of Product Line named–and its corresponding description–are the specifications for the desired Products manufactured or offered under that named brand.

Each requested Product Line category is listed on a table within the electronic bid form. For convenience, the specified Product Lines are also listed within a bid announcement on the website at www.PEPPM.org/bids.

By law, equivalent product lines may be offered and will be duly considered, and no penalty shall result in evaluation of bids. If receiving a bid for an equivalent to the specification, AGENCY reserves the right

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to request detailed specifications and samples, provided at Bidder’s expense within three business days of request. Samples maybe used, tested, opened , or destroyed in the process of esta blishing equivalency.

New Products Provisions
Products offered by a Bidder and those sold by an Awarded Vendor or Authorized Reseller must be new and may not be refurbished.

Any serialized Products and licenses must feature new and unique serial numbers, unaltered from the manufacturing source.

Agency accepts that some manufacturers may use some recycled, incidental components meeting like-new standards.

Awarded Vendors must ensure that all Products sold contain the components parts and features meeting commercial standards for their awarded Product Lines. All components inside a Product must be manufacturer approved, unless otherwise noted, and subject to the full manufacturer’s warranty.

Also, an Awarded Vendor must make sure that any Products of fered or sold in response to this RFB are the same models indicated by their external label and source of manufacture.

Necessary Supplies
Bidders are encouraged to include bid pricing for all related or necessary supplies required to use the Products within a Product Line category. A Bidder may use variable discounts or markups to address pricing variances among supplies, equipment, and services.

Sale of Demonstration Products
Products that have never been sold or leased, but have been used for demonstration purposes may be sold under the Contract under three conditions:
• The price of the Product is further discounted below the PEPPM bid price • The Eligible Entity has full knowledge of length of time the Product was in service • A warranty policy is described

Installation and Service
Any Products needing to be installed or any ancillary services rendered shall be provided in accordance with the manufacturer’s instructions and in accordance with the schedule mutually agreed upon between Awarded Vendor and the Agency or Eligible Entity.

New Technology and Product Additions
An Awarded Vendor may request to add newly invented Products, newly marketed Products, and other new Products for sale under its contracted Product Line category under the following conditions:
• The new Products fit within the Product Line’s brand specifications • A clear pricing formula was originally bid and applies to the new Products • Substitute or replacement Products are equal to or superior to the original offerings • No request is made to subvert competitive procurement procedures

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The Agency may reject any requests for additions or replacement in its sole discretion–with or without cause.

Replacement Parts
Through their supply sources, Awarded Vendors must be able to provide or sell replacement, component parts for Products during any warranty period and two years thereafter. Replacement parts may be the same or a functional equivalent. They may be provided by the manufacturer, a manufacturer’s designated representative, or a mainten ance service provider designated by an Eligible Entity, so long as such maintenance service provider is authorized by the Awarded Vendor.

An Awarded Vendor and Eligible Entity may enter into a maintenance service agreement with respect to the provision of repair parts.

Proof of Supply
A Bidder must offer proof they have access to a legal and legitimate supply of goods for every category of Product Lines they are bidding. Awarded Vendors must not change this supply chain without notice and approval of the Agency.

Agency accepts that a manufacturer who is bidding has access to its own Products. Manufacturers may answer that it is its own supply source on the appropriate question on the electronic bid form.

All other Bidders–such as resellers, distributors, dealers, aggregators, and wholesalers–must submit a letter of authorization from a manufacturer. A separate letter is required for each Product Line being bid. A model letter for this purpose is included as an attachment on the electronic bid form. The components of the model letter include the following components and attributes:
• Dated within the bidding period
• Addressed specifically to PEPPM or the Agency
• Written on manufacturer’s letterhead
• States that Bidder is authorized to sell the manufacturer’s Products • Describes the relationship between the manufacturer and the Bidder • Indicates which states the Bidder is authorized to sell in • Is signed by a management employee who represents they have the authority to sign the letter on behalf of the manufacturer
• The signatory identifies the contact information of a supervisor if the letter needs to be verified

Alternative Evidence of Supply
If a manufacturer refuses to provide a proof -of-supply letter to a Bidder, that Bidder may attach alternative evidence of access to a legal supply of goods in their bidding categories. A generic letter from a wholesale distributer is not sufficient evidence. Acceptable alternative evidence can be a letter from a wholesale distributor that has the same information for each spe cific Product Line that would have come from manufacturers if available.

The Agency reserves the right to withdraw an award if a third party shows contractual or legal proof that an Awarded Vendor is prohibited from selling to Eligible Entities.

Liens
All Products offered and sold shall be free from all liens.

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Licenses
Awarded Vendor (and its Authorized Resellers) shall maintain all federal, state, and local licenses, certifications, bonds, and permits applicable and required for operations in California and in all other states in which Awarded Vendor does business under the Contract.

Standard Warranty
The Awarded Vendor who is not the manufacturer of the Product shall pass through to the Eligible Entity the manufacturer’s warranty for each Product sold.

The Awarded Vendor warrants that, to its knowledge, all Products furnished under the authority of the Contract shall at the time of delivery be free and clear of any defects in material and workmanship and shall conform to the published specifications of the manufacturer of the Products. The manufacturer’s warranty shall apply during the applicable warranty period.

Awarded Vendors selling laptops, personal computers, desktops, and servers must provide a standard manufacturer’s warranty of at least one year. If the standard manufacturer’s warranty is longer than one year, the longer warranty period will apply.

For each Product Line being bid, a Bidder must attach a manufacturer’s warranty statement on the bid form or provide links to the applicable warranty, so that Eligible Entities will understand their warranty rights for the Products offered. The statement must also clarify any discrete responsibilities of the Awarded Vendor versus the manufacturer.

Awarded Vendors selling computers must maintain certificatio ns that the manufacturers have about compatibility and compliance with up -to-date operating systems, and federal safety and communications guidelines.

Onsite Warranty Service
Bidders offering personal computers and servers must have the capability, either directly or through the manufacturer or a manufacturer’s representative, to perform onsite warranty service (warranty is defined as the standard provided by the manufacturer for the period of time indicated in the Contract).

Awarded Vendors must perform warranty services at the Eligible Entity’s site of the equipment needing such service when requested by the Eligible Entity. Eligible Entities are responsible for payment of onsite warranty services which do not fall within the scope of the manufacturer’s standard warranty.

Manufacturer’s “depot service only” Products or “customer replaceable parts” are excluded from this requirement.

Direct Relationships with Providers for Services Other Than Onsite Warranty Services For Bidders offering personal computers, offsite warranty service locations may be a branch or satellite office of the Bidder or manufacturer service and support facilities, or facilities of some other third party whose relationship the Bidder will maintain to provide the services required within the scope of Contract. The Contract may be terminated for default if, at any point during the term of the Contract, the Awarded Vendor fails to maintain these relationships. These relationships may, but are not required to, infer ownership and/or franchise relationships. They only require that an ongoing affirmative business relationship exists. Agency reserves the right to inquire into the extent of these business relationships maintained, and listed herein, by the Bidder up to the extent that confidentiality is not compromised. The Awarded Vendor is ultimately responsible for the satisfactory and timely completion of all service requirements and activities and is under a duty to monitor all service performances of the service providers.

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Ancillary Services Related to Products
As part of their bids, Bidders may offer pricing for ancillary services advantageous or necessary for the planning, use, deployment, and maintenance of the Products they sell.

The provision of ancillary services is not a requirement for a bid to be responsive, except where a Bidder is required to provide such services at no additional cost under a contractual arrangement with its supplier or manufacturer.

However, the Agency will evaluate bids for the presence either a) an ancillary service spreadsheet form alongside each Product Line being bid of b) a statement the Bidder is not offering ancillary services. If awarded, any ancillary services offered will be part of the Contract and presumed bid -protected as allowed by law.

Such ancillary services may include, but are not limited to analysis and design, asset tagging, consulting, equipment configuration, heat mapping, cloud -based configuration, engineering, hard drive removal and retention, help desk support, image loading, installation, maintenance, training, and travel.

If offering ancillary services, a Bidder must submit a PEPPM Ancillary Services Form, quoting a discounted bid price compared to the vendor’s standard rate card fees. Agency will use this form to evaluate and determine the bid price of any ancillary services offered. Stating prices “will be negotiated” is not acceptable; such offers will not be considered for inclusion in an award.

Bidders must submit a separate spreadsheet form for each respective Product Line being bid with an offer of ancillary services.

Bidders are cautioned to not lower per-unit Product purchase prices and offer above-market ancillary service prices. Agency staff will review the availability and reasonableness of ancillary services and prices in when evaluating bids.

For Awarded Vendors that offer ancillary services provided indirectly through an Authorized Reseller or designated service provider, the pricing for the services provided by the designated service provider must be at or below the prices provided by the Awarded Vendor as part of their bid.

Pricing that is based on “per-hour” rates or similar units does not determine final cost to the Eligible Entity–just the rate. If an Awarded Vendor has offered ancillary service s in conjunction with the bid - awarded Contract Products it provides to the Eligible Entity, the Awarded Vendor and the Eligible Entity shall mutually agree upon the scope of the ancillary services to be provided at the PEPPM-discounted price.

In several ju risdictions Eligible Entities are required to pay Prevailing Wage for certain ancillary services. Bidders may include two sets, or side by side schedules, of ancillary service pricing with their bids–one for projects not subject to the payment of prevailing wages, and one for projects subject to the payment of prevailing wages.

E-rate Program Mini-Bid Process and Compliance
Awarded Vendors for Product Lines eligible for discounts under the federal E-rate Program will comply with all requirements of the Univ ersal Service Program of the Telecommunications Act of 1996, commonly referred to as the E-rate Program, as the same may be amended from time to time. These requirements include, but are not limited to, submitting the annual FCC Form 473 to USAC, providing

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E-rate SPIN numbers for the Awarded Vendor and all Authorized Resellers to Agency for publication, adhering to the E- rate 10 -year document retention requirement, and offering the “Lowest Corresponding Price” as defined in federal rules and regulations.

Further, because the E -rate Program defines the PEPPM Product Line Contracts as a ‘multi -award contract,’ LEAs must conduct a mini-bid procurement (a “PEPPM Mini-Bid”) prior to signing a contract (the “PEPPM Mini -Bid Contract”) and requesting E -rate discount s. The PEPPM Mini -Bid process consists of the following steps:
• LEA will draft a Product mini -bid list itemizing the Products and approximate quantities being sought to purchase.
• The Product mini-bid list may specify a particular manufacturer, but all Award ed Vendors or their Authorized Resellers that can provide equivalent Products under another PEPPM Product Line Contract may submit proposals for consideration. Equivalent is defined as a Product that is identical in functionality and quality, and which is compatible with any existing Product that may be specified in the mini-bid.
• LEA will email the mini -bid Product list to each Awarded Vendor that sells the same type or component of Products as those listed in the Product mini -bid list. Awarded Vendors or t heir Authorized Resellers may submit proposals to the LEA in the manner and in the format prescribed in the mini -bid cover email. The LEA will conduct a min -bid evaluation of all qualified proposals submitted, with the price of E -rate eligible Products bei ng the most heavily weighted evaluation factor. Price is not required to be the sole evaluation factor. • LEA will sign a PEPPM Mini- Bid Contract with the Awarded Vendor or its Authorized Reseller specifying the Products, quantities, and prices. The PEPPM Mini-Bid Contract will be in addition to any subsequent Purchase Orders submitted by the Eligible Entity for actual purchases to be made under the PEPPM Mini -Bid Contract after all contingencies (including, without limitation, E -rate funding approval) set forth in the PEPPM Mini -Bid Contract are satisfied. Quantities may be adjusted to meet the current needs of the LEA.
• PEPPM Mini-Bid Contracts are typically signed Awarded Vendor/Authorized Reseller proposals, but may be a contract, signed notice of bid acceptance, or other document memorializing the LEA’s acceptance of the proposal. Acceptance may be contingent on the LEA’s receipt of E-rate funding approval.
• Vendors awarded PEPPM Mini-Bid Contracts must extend such Contracts beyond the expiration of the PEPPM Product Line Contract for LEAs to use their E-rate funding. • Upon request, vendors must provide the LEA, E -rate Program administrator or the Federal Communications Commission with additional documentation needed to complete the application or invoice review, or in the event of an audit.
• Vendor must agree to provide discounted billing to the LEA and invoice the E-rate administrator for the discounted portion of the service, upon request.

Returned Goods Policy
Bidders must have a policy regarding how they handle the return of goods from Eligible Entities. A document describing the policy must be attached alongside the name of each Product Line being bid.

Equivalent Product Lines
California law requires that when specific manufacturers are identified in a procurement, Bidders must be able to submit bids for equivalent Products and services. Any Bidder offering an equivalent substitute

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as part of its bid must give notice of the substitution in the “Additional Response Information” on the electronic bid form.

Hazardous Materials
Awarded Vendors and their Authorized Resellers are required to comply with state statutes regarding hazardous materials, and chemicals, labeling and availability of material safety data sheets in the states they are selling in.

Export Restrictions and Statement of Assurance
PEPPM-affiliated Contracts may involve Products, software, and technical data that are governed by the provisions of the U.S. Export Administration Regulations (“EAR”) and all other applicable U.S. export control laws and regulations.

Each Awarded Vendor and Eligible Entity shall comply with all U.S. export laws and all other applicable U.S. export control laws and regulations, as amended from time to time, including, but not limited to, § 736 (General Prohibitions), § 742 (Control Policy), § 744 (End -user and End -use Based), § 746 (Embargoes and Other Special Controls), and § 774 (Commerce Control List) of the EAR, as they pertain to export or re -export. Each Eligible Entity certifies that, unl ess authorized by U.S. laws and regulations (either by specific regulation or written authorization from the U.S. Government), it shall not export or re -export the Products, software, technical data purchased under an Agency Contract from the Awarded Vendor, or the direct Product thereof in violation of applicable U.S. export control laws and regulations.

Each Eligible Entity acknowledges that:
• It is unlawful to export or re -export (without written U.S. Government authorization) Awarded Vendor’s Products, technology, or software if they know that they will be used:

o In the design, development, production, or use of missiles in or by a country listed in Country Group D:4
o In the design, development, production, stockpiling, or use of chemical or biological weapons in or by a country listed in Country Group D:3
o In the design, development, production, stockpiling, or use of nuclear weapons in or by a country listed in Country Group D:2 (Supplement No. 1 to EAR § 740); and

• Export or re -export of Awarded Vendor’s technology, software, source codes, or direct Products thereof to a country or national thereof listed in Country Group D:1 or E:2 may be prohibited, unless authorized by U.S. regulations (§ 740 of the EAR) or written authorization from the U.S.

Government.

The provisions of this s ection shall survive the term and termination of the Contract and Purchase Order.

Products Not Intended for Critical Application
The Products sold under PEPPM -affiliated Contracts are not designed for any “Critical Applications.” “Critical Applications” means life support systems, medical applications, human implantation, commercial aviation, nuclear facilities, or systems or any other applications where Product failure could lead to injury to persons or loss of life or catastrophic property damage.

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Awarded Vendors disclaim any and all liability arising out of the use of the Products in any Critical Applications. If Eligible Entity uses the Products in a Critical Application, such Eligible Entity, and not Awarded Vendor, assumes full responsibility for such use.

VII Ordering Procedures and Requirements (Return to Top) VII.1 An Overview of the Ordering Process
To put the following Contract provisions into context, Agency provides this simp lified overview of the normal PEPPM ordering process (unless Agency has granted exceptions or unless conducting a PEPPM Mini-Bid process which has additional procedures):
• Awarded Vendors submit their Contract pricing to PEPPM on an approved template • PEPPM converts pricing into a hosted electronic catalog on PEPPM.org • Some Awarded Vendors may be approved to manage their pricing by way of Punchout technology • Eligible Entities shop on PEPPM or Epylon websites, create shopping lists, talk with Awarded Vendors, or get quotations from Awarded Vendors
• Eligible Entities address their Purchase Orders to Awarded Vendors, itemizing desired Products and Contract pricing
• Eligible Entities forward their Purchase Orders to the PEPPM Clearinghouse for review, archiving, and electronic transmission to appropriate vendors
• Awarded Vendors fulfill orders as directed on the Purchase Order • Awarded Vendors invoice Eligible Entities at Contract pricing or below • Eligible Entities pay Awarded Vendors directly

VII.2 Display of Contract Pricing
Awarded Vendors must provide Contract pricing, along with descriptions, keywords, and other relevant data on an approved PEPPM template. The information will be loaded into PEPPM’s electronic catalog on PEPPM.org, Epylon.com, and affiliated websites. In displaying contracted line items, PEPPM will:
• Make actual prices blind to non-registered users
• Display relevant pricing to users according to their relevant buyer profiles • Make line items searchable by keyword, Stock Keeping Unit (SKU), Product Line, or category

VII.3 Punchout and Direct Receipt of Orders
An Awarded Vendor may ask Agency for its Contract pricing to be displayed by standard Punchout technology and/or to receive orders directly. Before approval, Awarded Vendors must agree in writing to comply with all PEPPM protocols, including accurate sales reporting. Approvals are at Agency’s sole discretion.

VII.4 Instruments for Orders
The standard method for ordering is for Eligible Entities to issue a Purchase Order to the Awarded Vendor or Authori zed Reseller. Eligible Entities shall precisely address their Purchase Orders to the proper vendors, following posted Ordering Instructions. Some Eligible Entities may use alternative purchase instruments, such as formal contracts or procurement cards, as may be allowed by these Terms and Conditions.

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VII.5 Submission of Purchase Orders
Unless instructed differently, Eligible Entities must send their Purchase Orders to the PEPPM Clearinghouse, which will review and archive orders, and then transmit Purchase Orders to the company designated on the Purchase Order. An Eligible Entity may scan all relevant documents and transmit the Purchase Order by email to [email protected], or it may send the Purchase Order and all its attachments by fax to (800) 636-3779.

Posted Ordering Instructions will inform Eligible Entities of any alternative order process in cases where Aw
arded Vendors have been given written permission from Agency to receive orders directly.

VII.6 Electronic Transmissions
Except where companies are authorized to receive orders directly, all Purchase Orders shall be transmitted electronically to vendors through the eCommerce software maintained by the eCommerce Consultant. Eligible Entities will either enter their orders directly into this system or the PEPPM Clearinghouse will enter orders on behalf of the Eligible Entities.

Vendors, upon receipt of a Purchase Order in their eCommerce inbox, shall promptly and properly transmit an acknowledgment and order status by using tools provided on the site.

To the maximum extent permitted by law, the parties agree to accept an electronic Purchase Order submission and acceptance, executed by an authorized user of the eCommerce system, as representing any necessary “electronic signature” required by law.

VII.7 Authority of the Purchase Order
Receipt of a Purchase Order constitutes authority to the Awarded Vendor or Authorized Reseller to sell and make delivery of the ordered Products, according to these Terms and Conditions and directions listed on the Purchase Order.

VII.8 Awarded Vendor Is an Independent Contractor
In performing its obligations under a Purchase Order, the Awarded Vendor will act as an independent contractor and not as an employee or agent of the Agency or any Eligible Entity.

VII.9 Term of the Purchase Order
The term of the Purchase Order shall start on the date that the Awarded Vendor receives a Purchase Order executed by the Eligible Entity. This is the “Effective Date.” Subject to any other provisions stipulated in the document, the Purchase Order shall end on the later of:
• Complete delivery and acceptance of the awarded Products • The expiration of any specified warranty and maintenance period • Payment by the Eligible Entity for the Product(s) received • The expiration date identified on the Purchase Order

The Awarded Vendor shall not start the performance under the Purchase Order before the Effective Date and the Eligible Entity shall not be liable to pay the Awarded Vendor for any service or work performed or expenses incurred before the Effective Date. No Eligible Entity employee has the authority to orally

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direct the shipment of any Product(s) or the commencement of any work under the Purchase Order before the Effective Date.

VII.10 Orders Near a Contract Expiration Date
The fulfillment of a Purchase Order may extend beyond the Contract’s expiration date if the Eligible Entity issues a Purchase Order or E-rate Mini-Bid Contract before the Contract’s expiration.

The expiration date of the Contract term is to be considered the final date to enter into a valid Purchase Order under the Contract.

As such, all Purchase Orders received by the Awarded Vendor up to and including the expiration date of the Contract term are acceptable and must be shipped under the delivery time specified in the Contract. If normal delivery time cannot be met, Awarded Vendor must notify Eligible Entity, which has the option to accept or reject the extended delivery time.

VII.11 Invoice Requirements
Unless otherwise agreed between Eligible Entity and Awarded Vendor:
• The Awarded Vendor shall send (which may include via email) an itemized invoice to the “Bill To” address on the Purchase Order promptly after the Product(s) are delivered. For hardware “delivery” shall be the date the hardware arrives on Eligible Entity’s premises. For software, “delivery” shall be the date the software features are enabled and ready for Eligible Entity to use. • In the case where Products are being installed or implemented by the Awarded Vendor, the installation or implementation services invoice shall be presented after the Products are installed, have successfully completed diagnostic routines, and are available for Eligible Entity’s use. The foregoing does not preclude the Eligible Entity and the Awarded Vendor from agreeing to a different invoicing schedule depending on the scope and length of such installation or implementation services (for example, implementing a project in phases, with each phase having distinct milestones and payment obligations).
• Time and material services will be invoiced monthly in arrears. • Maintenance, management type services and cloud services will be invoiced monthly in advance unless otherwise agreed.

Invoices should include only amounts due under the Purchase Order. The Purchase Order number shall be prominently noted on all invoices, and the amounts invoiced must be at or below the bid Contract prices.

VII.12 Payments
Eligible Entities will directly pay Awarded Vendors upon receipt of invoice and confirmation that Products have been delivered.

All invoices are to be sent directly to the Eligible Entity, which will normally pay invoices within thirty (30) days of receipt or in compliance with their board policy on bill payment. The Agency will encourage Eligible Entities to arrange for prompt payment where possible and for payments of partial shipments.

Payment shall not be deemed as acceptance of the Products furnished by the Awarded Vendor. Where the Awarded Vendor is responsible for installation of the Products, acceptance of delivered Products is deemed to occur when the equipment is installed, has successfully completed diagnostic routines and is available for Eligible Entity’s use.

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The Awarded Vendor agrees that the Eligible Entity may deduct any state tax liability not required by law or other unauthorized obligation of the Awarded Vendor or its subsidiaries to the Eligible Entity from any payments due the Awarded Vendor under any Purchase Order with the Eligible Entity, subject to the Eligible Entity promptly providing any tax exemption certificate or other documentation to support the deduction.

At the discretion of the Awarded Vendor, the Eligible Entity may use a valid purchasing card to pay for the Products at the time of purchase. Any fees related to this payment are the responsibility of the Awarded Vendor. In no case will the Awarded Vendor increase Contract or invoiced prices to offset purchasing card fees incurred by the Awarded Vendor.

VII.13 Tax Exemptions
No charge will be allowed for federal, state, or local taxes from which the Eligible Entity is exempt. Prices shall be net and shall not include any such tax. Exemption certificates, if required, will be furnished on forms provided by the Eligible Entity. LEAs are exempt from all sales and excise taxes imposed by the Internal Revenue Service and have registered with or been recognized by the Internal Revenue Service to make tax-exempt purchases. In California, all Eligible Entities are subject to sales and use tax.

VII.14 Delivery
All Products ordered shall be delivered FOB Destination, with the Awarded Vendor selecting the shipping company. All Products should be delivered within the time period s pecified on the Purchase Order.

In situations where delivery cannot be made within the time period specified on the Purchase Order, Eligible Entity should be notified in writing or by telephone of the delay and of an estimated delivery date.

Delivery must be made to the place designated on each respective Purchase Order. Direct delivery to buildings must be placed at a point in the building as directed at the place of delivery. The Awarded Vendor will be required to furnish proof of delivery upon request from any Eligible Entity. All materials and supplies must be securely packed in uniform containers, adequately marked as to contents, Purchase Order number, and delivered without damage or breakage to such units as specified.

Any system configurations ordered shall be delivered as a complete system, unless otherwise agreed by the ordering Entity. When required by the ordering Entity, it will be the responsibility of the Awarded Vendor to stage the equipment delivery so that all components are de livered as a single unit simultaneously.

Awarded Vendors receiving Purchase Orders with delivery requirements that cannot be met have the right to refuse the order. The Awarded Vendor must return the Purchase Order with an explanation of why it was refused within five (5) business days of receiving the Purchase Order from the Eligible Entity.

Awarded Vendor’s PEPPM prices include the cost of normal delivery. If non -standard rigging charges apply to equipment purchases (or leases), a quote will be provided to the Eligible Entity within five (5) business days of receiving the Purchase Order from the Eligible Entity, or as soon as possible thereafter upon Awarded Vendor learning the order involves a non-standard delivery.

The Eligible Entity has five (5) business days after receipt of the quote for non-standard rigging charges to cancel the Purchase Order. Eligible Entity shall not be responsible for non-standard rigging charges

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